Document:

ERISA Plan Document and Summary Plan Description

 Exhibit 10.2 

 
  
 ERISA Plan Document and Summary Plan Description for the Pier 1 Imports, Inc. Supplemental Individual Disability Income Benefit Plan 

 
  
 At the request of your employer, we are including this important information as required pursuant to ERISA. This document, together with the information contained in your individual disability income
insurance policy (the “Policy”), which you have received, constitute both the Summary Plan Description (SPD) and the plan document for the Pier 1 Imports, Inc. Supplemental Individual Disability Income Benefit Plan , and should be
considered your SPD. Your employer or MetLife may periodically send you changes to the Plan or Policy which you should consider to be a part of your SPD. The terms of this SPD and your Policy control in the event there is any inconsistency between
these documents and any other information or communication you may have received. Your employer originally established this Plan effective as of September 1, 2012. 
 NAME OF THE PLAN 
 Pier 1 Imports, Inc. Supplemental Individual Disability Income Benefit
Plan (“The Plan”) 
 NAME AND ADDRESS OF EMPLOYER AND PLAN ADMINISTRATOR 

Pier 1 Imports, Inc. 
 100 Pier 1 Place

 Fort Worth, Texas 76102 
 (817)
252-8000 
 Plan Administrator 
 Pier 1
Imports, Inc. 
 100 Pier 1 Place 
 Fort
Worth, Texas 76102 
 (817) 252-8000 

EMPLOYER IDENTIFICATION NUMBER (EIN) AND PLAN NUMBER 
  

			
	EIN: 75-1729843	 	Plan Number: 520

 TYPE OF PLAN 
 Employee Welfare Benefit Plan Including Disability Income Insurance Benefits 
 CLAIMS
ADMINISTRATOR FOR INDIVIDUAL DISABILITY INCOME INSURANCE POLICY BENEFITS: 
 Metropolitan Life Insurance Company (“MetLife”)

 TYPE OF ADMINISTRATION 
 The
Individual Disability Income Insurance policies issued under this Plan (“policies”) are insured by MetLife. MetLife is the Claims Administrator for benefits payable under these policies and has been given authority under the Plan to
conduct a full and fair review of any claims under the policies. 

 AGENT FOR SERVICE OF LEGAL PROCESS 
 For disputes arising under those portions of the Plan insured by the policies issued by MetLife, service of legal process may be made upon MetLife by serving the supervisory official of the Insurance
Department in the state in which you reside. 
 For other disputes arising under the Plan, service of legal process may be made upon the Plan
Administrator at the above address. 
 ELIGIBILITY FOR PARTICIPATION; DESCRIPTION OR SUMMARY OF BENEFITS 

Your employer allows the following employees of Pier 1 Imports, Inc. to participate under the Plan: 

	
	
	 President & CEO

	
	 Senior Executive Vice President Finance/CFO

	
	 Executive Vice President Human Resources

	
	 Senior Vice President Marketing & Visual Merchandising

	
	 Executive Vice President Merchandising

	
	 Senior Vice President Business Development & Strategic Planning

	
	 Senior Vice President and General Counsel

	
	 Executive Vice President Stores

	
	 Executive Vice President Planning & Allocations

	
	 Senior Vice President & CIO

	
	 Senior Vice President International Logistics & Transport

 Further, in order to become a participant in the Plan and for a policy to become effective, an employee
described above must be working at least 30 hours per week as an employee of Pier 1 Imports, Inc. as of the effective date of the policy. Such employee must also be Actively at Work in order to be eligible for coverage under the Plan. The term
“Actively at Work” shall mean: (1) for the 90 days prior to and including the employee’s application date, the employee has been: (a) working for Pier 1 Imports, Inc. or a previous employer doing all of the material duties
of the employee’s occupation at: (i) the usual place of business; or (ii) some other location that the business required the employee to be; and the employee has worked the usual number of hours, but not less than 30 hours per week;
or (b) a “full time” student in school and (2) during the 90 days prior to and including the employee’s application date, the employee has been absent from work solely due to vacation days or holidays. 

In order for coverage to begin, an eligible employee must complete and submit an application form provided by MetLife. The application must be approved
by MetLife. 
 MetLife may limit or decline coverage to individuals who (i) are working outside the United States; (ii) are not United
States citizens; or (iii) are not permanent United States residents. 
 No policies are available to issue for ages over 70, except in the
case of the policy renewability provisions as administered and interpreted by MetLife. The policy renewability provisions state that policies are non-cancelable and guaranteed renewable to age 65 or 67 (depending on state approval); except if the
policy is issued at or after age 65, then the policy is non-cancelable and guaranteed renewable for five policy years from date of issue. Please refer to your Policy (including the endorsements to your Policy) and contact MetLife for additional
information concerning these provisions. 
 The Plan provides a benefit of up to 65% of total compensation (which includes base and incentive
pay), less in-force group long term disability benefits, to a maximum monthly benefit of $7,500. The Pier 1 Imports, Inc. group long term disability plan covers 60% of base salary to a maximum monthly benefit of $15,000. The total monthly maximum
benefit for both plans is $22,500. 
 Total individual disability income insurance coverage including coverage under this Plan and any other
individual disability income insurance coverage will be limited to $30,000 per month, unless otherwise noted. Total individual disability income insurance and group long term disability coverage from all sources will be limited to $40,000 per month
unless otherwise noted. 
 The Plan provides for a 90 day Elimination Period. The term “Elimination Period” means the number of days
of disability which must elapse before benefits begin to accrue for that disability. These need not be consecutive days of disability, but must occur within the accumulation period (as defined in your Policy) for the same or a related cause.

 The maximum benefit period runs to age 65 (or as outlined in the table set forth below). The maximum benefit
period is the maximum amount of time that applicable benefits may be paid for any period of disability under the Plan. The maximum benefit period varies by age depending on when the disability began. The maximum benefit period is set forth in the
following table: 
  

			
	 Age When Disability Begins
	  	Maximum Benefit Period
	 Before Age 61
	  	To Age 65
	 At Age 61 but Before Age 62
	  	48 Months
	 At Age 62 but Before Age 63
	  	42 Months
	 At Age 63 but Before Age 64
	  	36 Months
	 At Age 64 but Before Age 65
	  	30 Months
	 At Age 65 but Before Age 75
	  	24 Months
	 At or After Age 75
	  	12 Months

 Benefits for disability due to a Mental Disorder and/or Substance Use Disorder (as defined in your Policy) are limited to
24 months for all periods of disability combined. However, if the participant is admitted to a hospital, the time spent in the hospital being treated for the Mental Disorder and/or Substance Use Disorder does not count toward the 24-month
limitation. 
 The Plan may contain certain policy riders, which may be amended from time to time. All eligible employees who apply for coverage
under this Plan must also apply for the optional policy riders selected by your employer. The issuance of coverage under such policy riders is not guaranteed and may be subject to certain state law requirements, age requirements and medical
underwriting requirements. Please contact MetLife for additional information about eligibility requirements and coverage under any optional policy riders provided by the Plan. 
 Applications for coverage under the Plan submitted after the end of the initial enrollment period will be subject to full medical underwriting requirements. This provision is not applicable to newly hired
employees and newly eligible employees. MetLife requires that all applications must be signed in the United States of America. 
 Your Policy
describes the eligibility for benefits under the Policy in greater detail. It also includes a detailed description of the benefits provided under the Policy. The rights and conditions with respect to benefits payable from the Policy shall be
determined under such Policy. Please refer to your Policy for additional information concerning eligibility for benefits provided under the Plan. 
 ERISA PLAN TERMINATION OR CHANGES 
 The policies issued pursuant to this Plan set forth
those situations in which MetLife has the right to terminate these policies. 
 In addition to the foregoing, your participation under this Plan
terminates as of the date on which: 
  

	 	•	 	 Pier 1 Imports, Inc. terminates the Plan; 

  

	 	•	 	 Your employment with Pier 1 Imports, Inc. terminates; 

	 	•	 	 You no longer fall within a classification of employee eligible for coverage under the Plan or you no longer satisfy any other eligibility requirement
of the Plan; 

  

	 	•	 	 Any applicable premium contribution is due and unpaid. 

 Since these benefits are funded by policies issued by MetLife, you may be able to continue coverage under these policies even if the employer terminates the Plan or if your coverage under the Plan
otherwise ends. Please contact MetLife for additional information regarding continuing your coverage if your employer terminates the Plan or your participation under the Plan terminates. 
 Your employer reserves the right to modify, amend or terminate the Plan at any time for any reason. Therefore, there is no guarantee that you will be eligible for the benefits described herein for the
duration of your employment. Any such action will be taken only after careful consideration. Your consent or the consent of your beneficiary is not required to terminate, modify, amend, or change the Plan. 

MetLife may terminate your Policy in accordance with the Premium and Reinstatement Section of your Policy only if premiums are not received on time. You
may be eligible to reinstate your Policy under certain circumstances described in this Section of your Policy. 
 CONTRIBUTIONS

 You are not required to make contributions to the Plan in order to be covered for the benefits under these policies. Your employer will
pay all premiums on your behalf while you are a participant in the Plan. However, the amount of the premiums paid by your employer toward coverage under the Plan will be reported on your Form W-2 as income. 

PLAN YEAR 
 The plan
year for the Plan begins June 1st and ends the next
May 31st. Notwithstanding the foregoing, the first plan year shall run from September 1, 2012 (the original effective date of the Plan) to May 31, 2013. 
 CLAIMS INFORMATION 
 Procedures for Presenting Claims for Benefits

 All claim forms needed to file for benefits under the policies can be obtained from MetLife by calling 1-800-929-1492 who will assist you
or, if applicable, your beneficiary in filing claims. The instructions on the claim form should be followed carefully. This will expedite the processing of the claim. Be sure all questions are answered fully. 

The completed claim form should be returned to MetLife. 
 When the claim has been processed, you or, if applicable, your beneficiary will be notified of the benefits paid. If any benefits have been denied, you or, if applicable, your beneficiary will receive a
written explanation. 

 Routine Questions 
 If there is any question about a claim payment under the policies, an explanation may be requested from MetLife. 
 Individual Disability Income Insurance Benefits Claims 
 Claim Submission

 For claims for Individual Disability Insurance benefits, the claimant must complete the appropriate claim form and submit the required
proof as described in the “Claims” Section of the policies. 
 Initial Determination 

After you submit a claim for Individual Disability Income benefits to MetLife, MetLife will review your claim and notify you of its decision to approve or
deny your claim. 
 Such notification will be provided to you within a reasonable period, not to exceed 45 days from the date you submitted your
claim; except for situations requiring an extension of time because of matters beyond the control of the Plan, in which case MetLife may have up to two (2) additional extensions of 30 days each to provide you such notification. If MetLife needs
an extension, it will notify you prior to the expiration of the initial 45 day period (or prior to the expiration of the first 30 day extension period if a second 30 day extension period is needed), state the reason why the extension is needed, and
state when it will make its determination. If an extension is needed because you did not provide sufficient information or filed an incomplete claim, the time from the date of MetLife’s notice requesting further information and the extension
until MetLife receives the requested information does not count toward the time period MetLife is allowed to notify you as to its claim decision. You will have 45 days to provide the requested information from the date you receive the extension
notice, requesting further information, from MetLife. 
 If MetLife denies your claim in whole or in part, the notification of the claims
decision will state the reason why your claim was denied and reference the specific Policy provision(s) on which the denial is based. If the claim is denied because MetLife did not receive sufficient information, the claims decision will describe
the additional information needed and explain why such information is needed. Further, if an internal rule, protocol, guideline or other criterion was relied upon in making the denial, the claims decision will state the rule, protocol, guideline or
other criteria or indicate that such rule, protocol, guideline or other criteria was relied upon and that you may request a copy thereof free of charge. 
 Please note that the definition of disability under the individual disability income insurance policies issued by MetLife under the Plan and any Group Long Term Disability Policies your employer may
have may differ. Approval of payment under one policy does not ensure payment under the other. 
 Appealing the Initial Determination

 If MetLife denies your claim, you may appeal the decision. Upon your written request, MetLife will provide you free of charge with copies
of documents, records and other 

 
information relevant to your claim. You must submit your appeal to MetLife at the address indicated on the claim form within 180 days of receiving MetLife’s decision. Appeals must be in
writing and must include at least the following information: 
  

	 	•	 	 Name of Insured 

  

	 	•	 	 Name of the Plan 

  

	 	•	 	 Reference to the initial decision 

  

	 	•	 	 An explanation why you are appealing the initial determination 

 As part of your appeal, you may submit any written comments, documents, records, or other information relating to your claim. 
 After MetLife receives your written request appealing the initial determination, MetLife will conduct a full and fair review of your claim. Deference will not be given to the initial denial, and
MetLife’s review will look at the claim anew. The review on appeal will take into account all comments, documents, records, and other information that you submit relating to your claim without regard to whether such information was submitted or
considered in the initial determination. The person who will review your appeal will not be the same person as the person who made the initial decision to deny your claim. In addition, the person who is reviewing the appeal will not be a subordinate
of the person who made the initial decision to deny your claim. If the initial denial is based in whole or in part on a medical judgment, MetLife will consult with a health care professional with appropriate training and experience in the field of
medicine involved in the medical judgment. This health care professional will not have consulted on the initial determination, and will not be a subordinate of any person who was consulted on the initial determination. 

MetLife will notify you in writing of its final decision within a reasonable period of time, but no later than 45 days after MetLife’s receipt of
your written request for review, except that under special circumstances MetLife may have up to an additional 45 days to provide written notification of the final decision. If such an extension is required, MetLife will notify you prior to the
expiration of the initial 45 day period, state the reason(s) why such an extension is needed, and state when it will make its determination. If an extension is needed because you did not provide sufficient information, the time period from
MetLife’s notice to you of the need for an extension to when MetLife receives the requested information does not count toward the time MetLife is allowed to notify you of its final decision. You will have 45 days to provide the requested
information from the date you receive the notice from MetLife. 
 If MetLife denies the claim on appeal, MetLife will send you a final written
decision that states the reason(s) why the claim you appealed is being denied and reference any specific policies provision(s) on which the denial is based. If an internal rule, protocol, guideline or other criterion was relied upon in denying the
claim on appeal, the final written decision will state the rule, protocol, guideline or other criteria or indicate that such rule, protocol, guideline or other criteria was relied upon and that you may request a copy free of charge. Upon written
request, MetLife will provide you free of charge with copies of documents, records and other information relevant to your claim. 

Discretionary Authority of Plan Administrator and Other Plan Fiduciaries 
 In carrying out their respective responsibilities under the Plan, the Plan Administrator, the Claims Administrator and other Plan fiduciaries shall have full discretionary authority to interpret the terms
of the Plan and to determine eligibility for and entitlement to Plan benefits in accordance with the terms of the Plan. Any interpretation or determination made pursuant to such discretionary authority shall be given full force and effect, unless it
can be shown that the interpretation or determination was arbitrary and capricious. 

 STATEMENT OF ERISA RIGHTS 
 The following statement is required by federal law and regulation. 
 As a participant in the Plan,
you are entitled to certain rights and protections under the Employee Retirement Income Security Act of 1974 (ERISA). ERISA provides that all plan participants shall be entitled to: 
 Receive Information About Your Plan and Benefits 
 Examine, without charge, at the Plan
Administrator’s office and at other specified locations, such as worksites and union halls, all documents governing the Plan, including insurance contracts and collective bargaining agreements, and a copy of the latest annual report (Form 5500
Series) filed by the plan with the U.S. Department of Labor, if such report is required, and available at the Public Disclosure Room of the Pension and Welfare Benefit Administration. 
 Obtain, upon written request to the Plan Administrator, copies of documents governing the operation of the Plan, including insurance contracts and collective bargaining agreements, and copies of the
latest annual report (Form 5500 Series), if such report is required, and updated summary plan description. The Plan Administrator may make a reasonable charge for the copies. 
 Receive a summary of the plan’s annual financial report, if such report is required. The Plan Administrator is required by law to furnish each participant with a copy of this summary annual report.

 Prudent Actions by Plan Fiduciaries 
 In addition to creating rights for Plan participants, ERISA imposes duties upon the people who are responsible for the operation of the Plan. The people who operate your Plan, called
“fiduciaries” of the Plan, have a duty to do so prudently and in the interest of you and other Plan participants and beneficiaries. No one, including your employer, your union, or any other person, may fire you or otherwise discriminate
against you in any way to prevent you from obtaining a benefit under the Plan or exercising your rights under ERISA. 
 Enforce Your Rights

 If your claim for a welfare benefit is denied or ignored, in whole or in part, you have a right to know why this was done, to obtain
copies of documents relating to the decision without charge, and to appeal any denial, all within certain time schedules under the Plan’s claim procedures. You must receive a written explanation of the reason for the denial. You have the right
to have your claim reviewed. 
 Under ERISA, there are steps you can take to enforce the above rights. For instance, if you request a copy of
Plan documents or the latest annual report from the Plan and do not receive them within 30 days, you may file suit in a Federal court. In such a case, the court may require the Plan Administrator to provide the materials and pay you up to $110 a day
until you receive the materials, unless the materials were not sent because of reasons beyond the control of the 

 
Plan Administrator. If you have a claim for benefits which is denied or ignored, in whole or in part, you may file suit in a state or Federal court after you have exhausted the Plan’s claim
procedures. If it should happen that Plan fiduciaries misuse the Plan’s money, or if you are discriminated against for asserting your rights, you may seek assistance from the U.S. Department of Labor, or you may file suit in a Federal court.
The court will decide who should pay court costs and legal fees. If you are successful the court may order the person you have sued to pay these costs and fees. If you lose, the court may order you to pay these costs and fees, for example, if it
finds your claim is frivolous. 
 Assistance with Your Questions 
 If you have any questions about your Plan, you should contact the Plan Administrator. If you have any questions about this statement or about your rights under ERISA, or if you need assistance in
obtaining documents from the Plan Administrator, you should contact the nearest office of the Employee Benefits Security Administration, U.S. Department of Labor, listed in your telephone directory or the Division of Technical Assistance and
Inquiries, Employee Benefits Security Administration, U.S. Department of Labor, 200 Constitution Avenue N.W., Washington, D.C. 20210. You may also obtain certain publications about your rights and responsibilities under ERISA by calling the
publications hotline of the Employee Benefits Security Administration. 
 FUTURE OF THE PLAN 

It is hoped that this Plan will be continued indefinitely, but Pier 1 Imports, Inc. reserves the right to modify, amend or terminate this Plan at any
time for any reason. Any such action would be taken only after careful consideration.EX-10.1

 Exhibit 10.1 
 SEPARATION AGREEMENT 
 This SEPARATION AGREEMENT (this
“Agreement”) is entered into as of December 31, 2012, between SIFCO Industries, Inc., an Ohio corporation (the “Company”), and Frank Cappello (“Executive”). 

RECITALS 
 A. Executive
has been employed by the Company as its Vice President and Chief Financial Officer. 
 B. Executive and the Company are parties to a
Confidentiality and Assignment of Inventions Agreement dated February 21, 2000 (“Inventions Agreement”). 
 C. Executive
and the Company have mutually agreed to terminate the employment relationship effective on December 31, 2012 (the “Termination Date”). 
 D. Executive and the Company desire to provide for a smooth transition of Executive’s responsibilities and to resolve all issues regarding his employment with and separation from the Company.
Accordingly, and without admitting any liability or wrongdoing whatsoever, they are entering into this Agreement. 
 In consideration of the
promises and mutual agreements, provisions, and covenants contained in this Agreement and other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, the parties agree as follows: 

AGREEMENTS 
  

	 	1.1	Executive hereby acknowledges, covenants, and agrees: 

  

	 	(a)	That his employment with the Company as Vice President and Chief Financial Officer will be terminated effective as of the Termination Date, and he hereby resigns from
any and all other positions held with the Company and any affiliate thereof as of the Termination Date. 

  

	 	(b)	 To release and discharge forever the Company and its: (i) affiliated companies and entities, (ii) present and former directors, shareholders,
officers, employees, agents, and attorneys, (iii) predecessors, (iv) successors, (v) insurance carriers, and (vi) assigns (the Company and (i) through (vi) are sometimes hereinafter collectively referred to as the
“Company and All Related Parties”), and each of them, from all liabilities, claims, causes of action, charges, complaints, obligations, costs, losses, damages, injuries, attorneys’ fees, and other legal responsibilities, of any
form whatsoever, whether known or unknown, foreseen or unforeseen, anticipated or unanticipated, suspected or unsuspected, manifest or latent, which Executive now owns or holds, has at any time heretofore owned or held or may at any time own or hold
by reason of any matter or thing arising from any cause whatsoever prior to the Effective Date of this 

	 	
Agreement, and without limiting the generality of the foregoing, from all claims, demands, and causes of action based on, relating to, or arising out of Executive’s status as a shareholder,
or ownership of shares, in the Company, or Executive’s employment with the Company or any of its affiliates, compensation for such employment, or the termination of such employment relationship, including but not limited to claims for breach of
contract, defamation, invasion of privacy, wrongful discharge, retaliatory discharge based on the asserted engagement of any type of protected activity, or whistleblowing including, without limitation, under the Sarbanes-Oxley Act, or those claims
arising under the Americans With Disabilities Act, the Age Discrimination in Employment Act, Title VII of the Civil Rights Act of 1964, Ohio Revised Code Chapter 4112, Section 4113.52 of the Ohio Revised Code, and any other federal, state, or
local laws prohibiting age, sex, race, national origin, disability, or any other forms of discrimination or sexual or other forms of harassment. The foregoing shall not release any rights under this Agreement or the obligation of the Company to
indemnify or advance expenses, or the rights to indemnification or advancement of any expenses that Executive has, pursuant to any director and officer or other insurance policy the Company maintains or has maintained (including self-insurance), the
General Corporation laws of the State of Ohio or other applicable state or jurisdiction or pursuant to the articles of incorporation or code of regulations of the Company. 

 

	 	(c)	 That (i) he has made no assignment and will make no assignment of the claims, demands, causes of action, or other rights released herein; and
(ii) other than for a claim brought by him challenging the validity of this Agreement under the Age Discrimination in Employment Act, he will not institute any legal proceedings or, absent an order from a court of competent jurisdiction,
participate in any manner in any civil lawsuit based upon, arising out of, or relating to any claim, demand, cause of action, or other right released herein. In the event any such civil lawsuit is initiated by Executive or any assignee or successor
of Executive, Executive agrees to repay to the Company all consideration paid by the Company under this Agreement upon the demand of the Company. Executive further agrees to indemnify and hold harmless the Company and All Related Parties against any
loss or liability whatsoever, including but not limited to reasonable attorneys’ fees, caused by or incurred in any action before any court, which is brought by or on behalf of Executive or Executive’s successors in interest if such action
arises out of, is based on, or is related to any claims, demands, causes of action, or other rights released herein. The foregoing shall not prohibit Executive from filing a charge of discrimination with the United States Equal Employment
Opportunity Commission or the Ohio Civil Rights Commission, however, Executive acknowledges and agrees that this Agreement waives and releases any right to individual relief at law or equity that Executive may

  
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otherwise have in connection with any proceeding arising out of any such charge of discrimination. 

  

	 	(d)	Executive hereby acknowledges and agrees that in the course of his employment with Company Executive has had access to certain proprietary and Confidential Information
of the Company. Executive agrees (i) to hold the Confidential Information in strict confidence, (ii) not to disclose such Confidential Information to others, and (iii) not to use the Confidential Information in any way. For purposes
of this Agreement, Confidential Information shall include but not be limited to: business plans and strategies, marketing plans and strategies, customer lists, customer purchasing information, customer contact information, product design and
development information, methods of operation, technical services, non-public financial information, business development plans and strategies, system analyses, quality control programs and information, computer programs, software and hardware
configurations, information regarding the terms of the Company’s relationships with suppliers, pricing information, processes and techniques, creations, innovations, and any other information which the Company may reasonably treat or designate
as confidential from time to time. The Company believes that all Confidential Information constitutes trade secret information under applicable law. Executive shall, however, maintain the confidentiality of all Confidential Information whether or
not ultimately determined to be a trade secret. 

  

	 	(e)	That he will not apply for or seek re-employment with the Company or any affiliate thereof at any time in the future, and acknowledges that the Company shall have no
obligation to consider him for employment at any time in the future. 

  

	 	(f)	To the best of his knowledge and belief, he has already reported to the Company any actions or inactions by the Company or any Related Parties that could constitute the
basis for a claimed violation of any federal, state, or local law or regulation. 

 2.1 The Company hereby
acknowledges and agrees that upon Executive’s prior execution and delivery of this Agreement to the Company, the Company shall, following the Effective Date (as defined in paragraph 3.7 of this Agreement): 

 

	 	(a)	Pay Executive, on the first regular payroll date, following the Effective Date, less all required federal, state, and local income and employment taxes and related
deductions and withholdings, the following amounts: 

 i) Severance pay in a lump sum amount equal to the sum of
one and one-half (1.5) times Executive’s base salary in effect on the Termination Date (total amount of 274,392). 

  
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 ii) Severance pay in a lump sum amount equal to one and one-half (1.5) times
Executive’s average annual incentive compensation during the prior three year period ($91,540.50). 
 iv) A lump sum amount
equal to one week’s accrued but unused vacation time ($3,517.85). 
  

	 	(b)	Pay Executive, on January 15, 2014, severance pay in a lump sum amount equal to one times Executive’s base salary in effect on the Termination Date
($182,928), less all required federal, state, and local income and employment taxes and related deductions and withholdings. 

  

	 	(c)	Deliver to Executive, on January 15, 2014, 9,818 shares of Company stock, less all required federal, state, and local income and employment taxes and related
deductions and withholdings, which such deductions and withholdings may be taken from the severance payment described in Section 2.1(b). 

  

	 	(d)	Provide, at its expense, executive outplacement services with Dise & Company for a period of twelve (12) months following the Termination Date. If
Executive does not initiate participation in outplacement services within one month of the Termination Date, such services will not be available to him. Further, to the extent that Executive does not actively participate in such outplacement
services at any point during the twelve (12) months, such services shall be discontinued. 

 2.2
Executive’s coverage under the Company’s dental, long term and short term disability, life, and any other insurance plans or policies in which Executive participated immediately prior to the Termination Date, as well as any such insurance
obtained by Executive and reimbursed by the Company immediately prior to the Termination Date will cease on the Termination Date, subject to Executive’s right to continue dental coverage under the Consolidated Omnibus Budget Reduction Act of
1986 (“COBRA”). The Company will provide any notices regarding the foregoing as required by law. The Company will provide and pay Executive a lump sum equal to $2,172 for COBRA coverage for Executive, for twenty-four
(24) months for continued dental coverage under the Company’s dental plan, provided Executive properly elects such COBRA coverage. Notwithstanding the foregoing, the COBRA coverage under the Company’s dental plan will only be
available to Executive for a maximum of eighteen (18) months, or such shorter period of time as required by applicable law. In addition, the Company will pay Executive a lump sum equal to $32,265 which is the equivalent of twenty-four
(24) months of family medical coverage under the Company’s group medical plan. The lump sum payment for dental coverage and the lump sum payment for medical coverage, less all required federal, state and local income and employment taxes
and related deductions and withholdings, will be paid on the first regular payroll date following the Effective Date. 

  
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 2.3 The Company and Executive acknowledge that Executive is forfeiting the Performance
Shares pursuant to those certain Performance Shares Award Agreements between the Company and Executive dated as of November 4, 2010, and November 11, 2011. 
 2.4 The Company agrees that Executive may retain the computer that he has been using while employed by the Company, subject to the confidentiality provisions of Section 1.1. 

2.5 The Company acknowledges that Executive has certain personal effects, which are his personal possessions and which Executive shall
have a right to remove from the Company on or before the Termination Date. Executive and the Company will cooperate in good faith in the review of the Company’s files and documents to determine those items that Executive may retain.
Executive’s retention of any such items shall be subject to his confidentiality and nondisclosure obligations under this Agreement and any nondisclosure agreement. 
 2.6 The Company agrees to provide Executive in advance with sufficient time for review (which shall be deemed to be no less than 24 hours by Email), any press release or filing to be made publicly, or
with the Securities and Exchange Commission or the New York Stock Exchange, which has as its subject the termination of Executive’s relationship with the Company; provided, however, the Company will need to only provide the portion of the press
release or filing that deals with Executive. 
 2.7 The Company releases and forever discharges Executive, his heirs, attorneys,
successors, and assigns, and each of them, from all liabilities, claims, causes of action, charges, complaints, obligations, costs, losses, damages, injuries, attorneys’ fees, and other legal responsibilities, of any form whatsoever, whether
known or unknown, foreseen or unforeseen, anticipated or unanticipated, suspected or unsuspected, manifest or latent, which the Company now holds, has at any time heretofore owned or held, or may at any time own or hold by reason of any matter or
thing arising from any cause whatsoever prior to the Effective Date of this Agreement. 
 2.8 That (i) the Company has made
no assignment and will make no assignment of the claims, demands, causes of action, or other rights released herein; and (ii) it will not institute any legal proceedings or, absent an order from a court of competent jurisdiction, participate in
any manner in any civil lawsuit based upon, arising out of, or relating to any claim, demand, cause of action, or other right released herein. 
 3.0 Executive shall fully cooperate with the Company in the transition of his duties and responsibilities by being reasonably available to answer questions and other inquiries by telephone. 

3.1 Subject to paragraph 2.4, Executive covenants and represents that he has returned, or will return before the Effective Date of this
Agreement, to the Company all of the Company’s property of any kind in his possession or the possession of his agents including, without limitation, all keys, credit cards, files, papers, documents, and devices

  
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for holding electronic information. Executive further agrees that he will not, without prior written consent of the Company, directly or indirectly, disclose, reveal, or communicate, or cause or
allow to be disclosed, revealed, or communicated, to any third party any of the Company’s or its affiliates’ confidential matters, non-public information, proprietary information, or trade secrets. 

3.2 All provisions of this Agreement will be binding on and inure to the benefit of the dependents, successors, heirs, executors,
representatives, administrators, and assigns of Executive, and the Company and All Related Parties. 
 3.3 With the exception of
the Inventions Agreement, the Performance Shares Award Agreements, the conversion rights to any insurance benefits, the vested rights in the Company’s 401(k) Plan, and Executive’s COBRA rights, all of which shall remain in full force and
effect, this Agreement constitutes the entire agreement among the parties and supersedes and extinguishes all prior negotiations and agreements among the parties. It is further agreed that, other than the payments and entitlements specifically
referenced in this Agreement, all payments due Executive as a result of his employment, whether salary, severance, bonus, commission, stock options, membership interest, stock grant, or other payments, have been made and that Executive is due no
other payments whatsoever, except those specifically provided for herein. 
  

	 	3.4	Executive and the Company further acknowledge and agree: 

  

	 	(a)	Neither Executive nor any of the individuals within the Company (including All Related Parties) with knowledge of this Agreement will make any statement or otherwise
communicate, divulge, or disseminate any information regarding the events, discussions, or communications relating to or leading up to this Agreement, to any person or entity, other than the information set forth in the Company’s Form 8-K
filing regarding Executive’s separation from employment and this Agreement, and any subsequent filings required under the rules of the Securities and Exchange Commission or the New York Stock Exchange. Nothing herein shall limit any
communication that Executive may have with his legal advisor, nor by the Company with its legal advisor and independent registered audit firm, provided that Executive and the Company, as applicable, will cause them to comply with this paragraph
3.4(a). Furthermore, subject to the limitations in paragraph 3.1 of this Agreement, nothing shall limit Executive’s duty to respond to any request by the Company’s Board of Directors or a committee thereof, any attorney representing
the Company, or in response to a lawfully issued subpoena from a court or agency of competent jurisdiction, provided that in the event Executive receives such a subpoena, he shall provide notice to the Company within two (2) days of receipt
thereof to enable the Company to move to quash or otherwise limit such subpoena. Furthermore, Executive agrees not to oppose any action by the Company in connection with any such subpoena. 

  
 6 

	 	(b)	Executive and the Company agree they will not make any disparaging remarks about the other. Disparagement for purposes of this Agreement means to engage in any act or
omission that would in either case subject Executive or the Company to public disrespect, scandal, or ridicule, or have a material adverse effect on their businesses, results of operations, financial conditions, reputations, or standing in the
community. 

  

	 	(c)	For purposes of paragraphs 3.1 and 3.4 of this Agreement, Executive and the Company acknowledge that the term “Company” includes the Company and All Related
Parties as defined in paragraph 1.1(b) of this Agreement. 

  

	 	(d)	Executive retains any and all rights that he may have as a shareholder of the Company under Ohio law, the Company’s Articles of Incorporation, or the
Company’s Code of Regulations, except to the extent any such right is expressly waived, released, prohibited, or otherwise restricted by this Agreement. 

 3.5 Executive and the Company acknowledge that they understand the terms of this Agreement, that they have had the opportunity to review it with legal counsel of their own choosing, and that they are
relying solely on the contents of this Agreement and are not relying on any other representation whatsoever as an inducement to enter into this Agreement. 
 3.6 This Agreement will be construed and enforced in accordance with the laws of the State of Ohio. This Agreement may not be varied, altered, modified, canceled, changed, or in any way amended, except by
written agreement, signed by both parties. 
 3.7 Executive acknowledges that he is aware of his right to
revoke this Agreement at any time within the seven (7) day period following the date this Agreement is signed by him and that, unless so revoked by written notice to the Company, this Agreement will become effective as of the thirtieth
(30th) day following the date he receives the
Agreement (the “Effective Date”). Executive further acknowledges that the payments to him specified in this Agreement will be paid only after the expiration of such seven (7) day revocation period. 

3.8 Executive and the Company further acknowledge that (a) they have read this Agreement, (b) the Company has offered Executive
a period of twenty-one (21) days for Executive to consider whether to enter into this Agreement, and Executive has either considered this Agreement and its terms for that period of time or has knowingly and voluntarily waived his right to do
so, (c) the Company has advised Executive in writing to consult with an attorney prior to his signing this Agreement, (d) they are each signing this Agreement voluntarily with full knowledge that it is intended, to the maximum extent
permitted by law, as a complete release and waiver of all claims, and without any coercion, undue influence, threat, or intimidation of any kind or type whatsoever, and (e) nothing herein constitutes any admission of liability or wrongdoing on
the part of 

  
 7 

 
Executive or the Company. The Company represents that it has the full authority to enter into this Agreement and that the terms and conditions are fully binding upon it. 

3.9 Certain payments contemplated by this Agreement may be “deferred compensation” for purposes of Section 409A of the
Internal Revenue Code (“Code”). Accordingly, the following provisions shall be in effect for purposes of avoiding or mitigating any adverse tax consequences to the Executive under Section 409A: 

 

	 	(e)	A termination of employment will not be deemed to have occurred for purposes of any provision of this Agreement providing for the payment of any amounts or benefits
upon or following a termination of employment, unless such termination is also a “separation from service” within the meaning of Code Section 409A, for purposes of any such provision of this Agreement, references herein to
“termination,” “termination of employment,” or similar terms will mean “separation from service.” 

  

	 	(f)	The intent of the parties hereto is that payments and benefits under this Agreement comply with or be exempt from Code Section 409A and the regulations and
guidance promulgated thereunder, and, accordingly, to the maximum extent permitted, this Agreement will be interpreted to be in compliance therewith or exempt therefrom. In no event whatsoever will the Company be liable for any additional tax,
interest, or penalty that may be imposed on Executive by Code Section 409A or damages for failing to comply with Code Section 409A. 

  

	 	(g)	To the extent any provisions of this Agreement would otherwise contravene one or more requirements or limitations of Code Section 409A, then the Company and
Executive may, within any applicable time period provided under the Treasury Regulations issued under Code Section 409A, effect through mutual agreement the appropriate amendments to those provisions that are necessary to bring the provisions
of this Agreement into compliance with Code Section 409A, provided such amendments shall not reduce the dollar amount of any such item of deferred compensation or adversely affect the vesting provisions applicable to such item, or otherwise
reduce the present value of that item. If any legislation is enacted during the term of this Agreement which imposes a dollar limit on deferred compensation, then Executive will cooperate with the Company in restructuring any items of compensation
under this Agreement that are deemed to be deferred compensation subject to such limitation, provided such restructuring shall not reduce the dollar amount of any such item, adversely affect the vesting provisions applicable to such item, or
otherwise reduce the present value of that item. 

  

	 	(h)	 Notwithstanding any provision to the contrary in this Agreement, if (i) the Company, in its good faith discretion, determines that any payments or
benefits described in this Agreement would constitute non-exempt deferred compensation for purposes of Code Section 409A and (ii)

  
 8 

	 	
Executive is a “specified employee” (within the meaning of Code Section 409A and the Treasury Regulations thereunder) at the time of his termination of employment, then such
payments or benefits shall not be made or paid to the Executive prior to the earlier of (x) the expiration of the six (6) month period measured from the date of such “separation from service” or (y) the date of his death
(the “Delay Period”). Upon the expiration of the Delay Period, all payments deferred pursuant to the foregoing shall be paid in a lump sum to Executive, and any remaining payments due under this Agreement shall be paid in accordance
with the normal payment dates specified for them in this Agreement. 

  

	 	(i)	For purposes of Code Section 409A, Executive’s right to receive any installment payment pursuant to this Agreement will be treated as a right to receive a
series of separate and distinct payments. 

  

	 	(j)	Whenever a payment under this Agreement specifies a payment period with reference to a number of days (e.g., “payment will be made within thirty (30) days
following the Termination Date”), the actual date of payment within the specified period will be determined solely by the Company. 

  

	 	(k)	To the extent that reimbursements or other in-kind benefits under this Agreement constitute non-exempt deferred compensation for purposes of Code Section 409A,
(i) all expenses or other reimbursements hereunder shall be made on or prior to the last day of the taxable year following the taxable year in which such expenses were incurred by Executive, (ii) any right to such reimbursement or in-kind
benefits shall not be subject to liquidation or exchange for another benefit, and (iii) no such reimbursement, expenses eligible for reimbursement, or in-kind benefits provided in any taxable year shall in any way affect the expenses eligible
for reimbursement, or in-kind benefits to be provided, in any other taxable year. 

 4.0. NOTICES. For purposes of
this Agreement, all communications provided for herein shall be in writing and shall be deemed to have been duly given when hand delivered or mailed by United States Express mail, postage prepaid, addressed as follows: 

 

	 	(a)	If the notice is to the Company: 

SIFCO Industries, Inc. 
 970 East 64th
Street 
 Cleveland, OH 44103-1694 
 Attn: Chief Executive Officer 
 With a Copy to: 

Benesch, Friedlander, Coplan & Aronoff, LLP 

  
 9 

 200 Public Square, Suite 2300 

Cleveland, OH 44114-2378 
 Attn: Megan L. Mehalko, Esq. 
  

	 	(b)	If the notice is to the Executive: 

 Mr. Frank Cappello 
 34230 Rosewood Trail 

Willoughby Hills, OH 44094 
 or to such other address as either party hereto may have furnished to the other in writing and in accordance herewith; except that notices of change of address shall be effective only upon receipt.

 IN WITNESS WHEREOF, this Agreement has been executed by or on behalf of each of the parties hereto as of the date first
written above. 
  

							
		  		  	SIFCO INDUSTRIES, INC.
				
	 /s/ Frank Cappello
	  		  	By:	  	 /s/ Michael Lipscomb

	FRANK CAPPELLO	  		  	 Print Name and Title: Michael Lipscomb,
 President and Chief Executive Officer

			
	Date of Execution: December 27, 2012	  		  	Date of Execution: December 31, 2012

  
 10

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