Document:

ex_395374.htm

Exhibit 10.1

 

DELIVERED ELECTRONICALLY                                                                         

 

Christine Chambers

[address]

[telephone number]

[email address]

 

RE:         Offer of Employment

 

Dear Ms. Chambers:

 

We appreciate your interest in PetMed Express, Inc. (the “Company”). On behalf of the Company, I am pleased to present you with this offer of employment. We are offering you the full-time position of Chief Financial Officer, reporting to Mathew Hulett, CEO and President. This offer is contingent upon successful completion of both the background check and pre-employment drug screening. This offer of employment will expire in five (5) business days.

 

We anticipate that your start date will be on or about 03-AUG-2022.

 

Also, as we discussed, your compensation is described on the attached exhibit, entitled “Compensation Structure.”

 

As an employee at the Company, you are also entitled to participate in the Company’s employee benefit plans or programs (if any) to the extent you are eligible to participate under the specific plan’s provisions. Such plans and programs currently include, but are not limited to, the following:

 

	Medical Insurance	Company Sponsored 401(k)
	Dental Insurance	Voluntary Life Insurance
	Vision Insurance	Voluntary Spouse & Dependent Insurance
	Voluntary Short-Term Disability	Flexible Spending Accounts – Medical & Dependent
	Voluntary Long-Term Disability	PetMeds Employee Discount

 

You will become eligible for benefit coverages on the first day of employment. These benefits are governed by the rules of each policy. Employees are eligible to participate in the 401(k) program after ninety (90) days of employment. The Company policies and benefit plans, which may be modified at the Company’s discretion in the future, describe what contributions, if any, are made to the plans on the employee’s behalf.

 

In addition to the foregoing benefits, you are eligible for three (3) weeks of vacation annually, accrued on a bi-weekly basis, as well as three (3) days of Personal Time Off.

 

The terms of your employment will be governed by the policies and procedures outlined in the Company’s Employee Handbook. While we have outlined the general benefits and terms of the employment relationship in this letter, this letter is not a contract of employment for any specified period of time and should not be construed as such. A formal Employment Agreement will follow this Offer of Employment.

 

Exhibit 10.1 Page 1 of 4

 

 

By signing this offer of employment letter, you confirm that (i) you are not bound by any covenant, contract, agreement or other legal obligations that would prohibit or restrict you in any manner from performing your duties for the Company, and you are not aware of any presently existing fact, circumstance or event which would prohibit or restrict you from providing to the Company the services contemplated by this letter of agreement, and (ii) you will not disclose to or use on behalf of the Company any proprietary information of a third party without that party’s written consent.

 

In order to accept this offer of employment letter, you will need to sign and return this letter along with the signed original(s) of the document(s) listed below:

 

	 	
			■

				
			Background Screening Authorization Form

			

 

	 	
			■

				
			Drug Screening Authorization Form

			

 

 

We look forward to building our relationship with you and ask you to confirm your acceptance of this offer by signing below and returning a signed copy to us. Should you have any questions regarding the documents you need to return to accept this offer of employment, please do not hesitate to contact me at your earliest convenience.

 

Very truly yours,

 

/s/ Mathew N. Hulett                                                                                  

Mathew N. Hulett

CEO and President

 

	July 14, 2022	 
	Date	 

 

 

I hereby accept the offer of employment stated in this letter.

 

 

	/s/ Christine Chambers	 	July 14, 2022	 
	Christine Chambers	 	Date	 

 

Exhibit 10.1 Page 2 of 4

 

 

Compensation Structure

 

Base Annual Salary: $375,000 paid bi-weekly in accordance with the Company’s standard payroll practice from time to time for employees, and subject to applicable withholding taxes.

 

The position is an Exempt position and is not eligible for overtime pay.

 

Sign-On Bonus: We are pleased to offer you a one-time sign-on bonus in the amount of $50,000. This bonus will be paid in a lump sum on the next regularly scheduled pay date after you start employment. If you terminate employment with PetMeds within the first twelve (12) months of employment, a pro-rated repayment of the signing bonus is required.         

 

Restricted Stock 

In accordance with the terms of the PetMed Express, Inc. 2016 Employee Equity Compensation Restricted Stock Plan (“Plan”), and subject to the further terms, conditions and restrictions contained in a separate agreement, titled “Restricted Stock Agreement Pursuant To PetMed Express, Inc. 2016 Restricted Stock Plan,” to be entered into by and between the Company and you on your start date, you will be granted 16,000 restricted shares of the Company’s common stock, of which 3,000 shares are performance stock. The performance criteria is equally weighted between Adjusted EBITA and Revenue. The details will be outlined in a separate agreement. The shares for each grant will vest equally over a three (3) year vesting period on the anniversary of the grant date.

 

You will be eligible for future annual restricted stock grants which may be comprised of a combination of both restricted stock and restricted performance stock. Restricted performance stock criteria will be determined in a future agreement and will be in accordance with the policy set forth at that time.

 

In the event of a Change of Control (as defined in Plan), the restrictions on the restricted stock shall terminate and lapse upon the following conditions: within twelve (12) months following the Change of Control your employment with the Company is terminated by (i) the Company, or the Company’s successor, without ”Cause” (as defined below) or (ii) by you for “Good Reason” (as defined below).

 

“Good Reason” means your voluntary termination, following the expiration of the Company cure period (described below), following the occurrence of one or more of the following, without your consent, that occurs within (A) sixty (60) days prior to the consummation of a Change of Control where such Change of Control was under consideration at the time of your termination date or (B) twelve (12) months after the date upon which such a Change of Control occurs:

 

(i) a material reduction of your authority, duties or responsibilities, relative to your authority, duties or responsibilities in effect immediately prior to such reduction, or a change in your reporting position such that you no longer report directly to the Chief Executive Officer of the Company; or

 

(ii) a material reduction by the Company of your annual base salary as in effect on your start date (or, if higher or lower, as in effect immediately prior to the reduction), except to the extent the base salaries of all other senior executives of the Company are similarly reduced totaling no more than 20% in the aggregate.

 

Exhibit 10.1 Page 3 of 4

 

 

You may not terminate the employment relationship for Good Reason in connection with a Change of Control without first providing the Company with written notice within sixty (60) days of the initial existence of the condition that you believe constitutes Good Reason in connection with a Change of Control specifically identifying the acts or omissions constituting the grounds therefor and a reasonable cure period of not less than thirty (30) days following the date of such notice.

 

Severance

If the Company terminates your employment other than for Cause, you will be entitled to twelve (12) months of severance pay at your base salary at the time of your termination, paid bi-weekly in accordance with the Company’s payroll practice from time to time for employees, and subject to applicable withholding taxes. “Cause” shall mean (a) committing or participating in an act of fraud, neglect, misrepresentation, embezzlement or dishonesty against the Company; (b) committing or participating in any other act or omission wantonly, willfully, recklessly or in a manner which was negligent against the Company; (c) engaging in a criminal enterprise involving moral turpitude; (d) conviction for a felony under the laws of the United States or any state thereof; (e) loss of any state or federal license required for you to perform your material duties or responsibilities for the Company.

 

As part of the severance package, you will also be entitled to receive Company paid Cobra for the benefits plans that are in effect and are eligible for this program in the event of termination until the earliest of (i) the last day of the period ending on the date that is twelve (12) months following such termination of employment, or (ii) the date when you become eligible for substantially equivalent health insurance coverage in connection with new employment.

 

 

Exhibit 10.1 Page 4 of 4EX-10.01

 Exhibit 10.1 
  

 
 July 2022 
 Dear R. Martin,

 On behalf of Alphabet Inc. (“Alphabet”), I am pleased to offer you a position as a member of Alphabet’s Board of Directors (the
“Board”) commencing on July 11, 2022 (the “Effective Date”), subject to the approval of your appointment by the Board. 
 As
compensation for your services to Alphabet, you will be granted an initial equity award of $1,000,000 in the form of Alphabet Restricted Stock Units (“GSUs”) on the first Wednesday of the month following the Effective Date. The exact
number of GSUs comprising this grant will be calculated by dividing $1,000,000 by the average closing price of Alphabet’s Class C stock for the calendar month prior to the calendar month in which the date of grant occurs, rounded up to the
nearest full GSU. These GSUs will first vest 25% on the 25th day of the month of your grant’s one year anniversary. Thereafter your GSUs will vest 1/48th monthly on the 25th of the month until fully vested. 

Following each annual shareholder meeting, you will be eligible to receive annualized compensation of a $350,000 GSU grant and a $75,000 cash retainer for the
prior year of service. Note that your 2023 awards will be prorated based upon the time between your appointment date and the annual shareholder meeting. Shares and cash payments will be made the first Wednesday of the month following each annual
shareholder meeting. The exact number of GSUs comprising this grant will be calculated by dividing the GSU grant value by the average closing price of Alphabet’s Class C stock for the calendar month prior to the calendar month in which the
date of grant occurs, rounded up to the nearest full GSU. These GSUs will vest 1/48th monthly, beginning on the 25th day of the month following grant, until fully vested. 

At the time of vest, the vested number of GSUs will convert to shares of Alphabet’s Class C stock. If the US financial markets are closed on a
vesting date, shares will vest on the next trading day. The number of GSUs granted and the vesting schedule details will be provided in the grant materials that you should receive shortly after the grant. 

Vesting in GSUs is contingent on continued service on the Board on the applicable vesting dates. These awards and all future equity awards are subject to the
terms and conditions of the applicable plan documents and award agreements. Pursuant to our Corporate Governance Guidelines, Alphabet Directors are required to hold fully vested shares of Alphabet stock equal in value to at least
$1,000,000. New Directors have five years from the date they became a director of Alphabet to come into compliance with these ownership requirements. Please note that ongoing compensation for service on the Board may be changed at any time
at the discretion of the Board. 
 You will also be reimbursed for all reasonable expenses incurred by you in connection with your services to Alphabet,
including reimbursement for first-class air travel. All expense reimbursements are in accordance with established Alphabet policies. 

  
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 We typically hold at least four one-day Board meetings per year.
Board meetings are generally held on-site at Alphabet and we would hope that your schedule would permit you to attend all of the meetings in person (note that telephonic attendance is also possible). In
addition, there may be telephonic calls to address special matters that arise from time to time. The Board has delegated certain duties to committees, on which you may be asked to participate. At this time, we request your participation on the Audit
and Compliance Committee. In addition to the four Board meetings per year, the Audit and Compliance Committee may hold additional intra-quarter meetings throughout the year. 

Nothing in this offer or the GSU agreement should be construed to interfere with or otherwise restrict in any way the rights of Alphabet and Alphabet’s
stockholders to remove any individual from the Board at any time in accordance with the provisions of applicable law. 
 This letter sets forth the terms of
your service with Alphabet and supersedes any prior representations or agreements, whether written or oral. This letter may not be modified or amended except by a written agreement, signed by a representative of Alphabet and by you. 

We hope that you find the above terms acceptable. You may indicate your agreement with these terms and accept this offer by signing and dating both the
enclosed duplicate and original letter and returning them to Kathryn Hall, our Vice President, Legal, Head of Corporate. 
 Marty, I am looking forward to
you joining Alphabet’s Board of Directors. I believe you will make a significant contribution to Alphabet. 
  

	
	Sincerely,
	
	/s/ JOHN L. HENNESSY
	
	Alphabet Inc.
	John L. Hennessy, Chair of the Board of Directors
	
	Accepted and agreed to this
	11th day of July 2022
	
	 /s/ R. MARTIN CHAVEZ

	R. MARTIN CHAVEZ

  
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