Document:

ex104arhaus-directorrsua

4862-7418-6554.1  Director Restricted Stock Unit Award Agreement  Under the Arhaus, Inc. 2021 Equity Incentive Plan      Arhaus, Inc. (the “Company”) has granted to the Participant an award (the “Award”) of  Restricted Stock Units (the “RSUs”). Each RSU represents an unfunded, unsecured promise of the  Company to deliver to the Participant one Share, subject to the vesting and other restrictions, terms,  and conditions set forth in the Arhaus, Inc. 2021 Equity Incentive Plan (the “Plan”) and those set  forth in this award agreement (the “Award Agreement”), including the Terms and Conditions of  RSU Award attached hereto as Exhibit A. Any capitalized terms used in this Award Agreement  and not defined herein shall have the meanings ascribed to such terms in the Plan.     Award of RSUs:     Participant Name:       Participant Address:            Grant Date:       Total RSUs Granted:        The Participant, by accepting this Award, acknowledges and agrees that the RSUs are  granted under and governed by the terms, and subject to the conditions, of this Award Agreement  and the Plan effective as of the Grant Date.    IN WITNESS WHEREOF, the parties hereto have executed this Award Agreement.     Arhaus, Inc.   Participant           By:___________________________   ___________________________     [Name]  [Title]    [Name]              

 

4862-7418-6554.1  Exhibit A     Terms and Conditions of Director RSU Award    1. Vesting. Subject in each case to the Participant’s Continuous Service, the RSUs  awarded under this Award Agreement shall vest on [applicable vesting schedule], subject to the  Participant’s Continuous Service (as defined in the 2021 Plan) through the vesting date unless,  prior to such vesting date, the RSUs are forfeited or have become subject to accelerated vesting  under the terms and conditions of the Plan or otherwise herein.  2. Termination of Continuous Service. The Company grants the Participant RSUs in  consideration for services to be rendered by the Participant to the Company. If a Director  Grantee’s Continuous Service terminates for any reason other than removal in accordance with  Section 4.6 of the Company’s Amended and Restated Bylaws, any unvested RSUs will become  fully vested.  3. Dividends. If the Company declares a dividend (ordinary or extraordinary, whether in  cash, securities, or other property) or distribution of other rights for which the record date is prior  to the date the RSUs are vested, dividend equivalents will be credited to the Participant and paid  or distributed if and when the underlying RSUs vest.  4. RSUs Non-Transferable. The Participant shall not directly or indirectly sell, transfer,  pledge, assign, or otherwise encumber the RSUs or any interest in them, or make any  commitment or agreement to do any of the foregoing.   5. Settlement. The Company shall, as soon as practicable upon the vesting of any RSUs,  effect delivery of Shares to fully settle such vested RSUs to the Participant (or, in the event of  the Participant’s death, to the Beneficiary). No Shares will be issued pursuant to this Award  Agreement unless and until all legal requirements applicable to such issuance have been  complied with to the satisfaction of the Committee.  6. Stockholder Rights.  Except as set forth in this Award Agreement or the Plan, no  Participant or Beneficiary shall have any rights as a stockholder with respect to Shares subject to  RSUs until such Shares are delivered to the Participant or the Beneficiary. Prior to actual  settlement of any RSUs that have vested, the RSUs represent an unsecured and unfunded  obligation of the Company.  7. Section 409A. This Award is intended to comply with Section 409A of the Code or an  exemption thereunder and shall be construed and interpreted in a manner that is consistent with  the requirements for avoiding additional taxes or penalties under Section 409A of the Code.  Notwithstanding the foregoing, the Company makes no representations that the payments and  benefits provided under this Award comply with Section 409A of the Code and in no event shall  the Company be liable for all or any portion of any taxes, penalties, interest, or other expenses  that may be incurred by the Participant on account of non-compliance with Section 409A of the  Code.    

 

4862-7418-6554.1  8. Data Privacy. The Participant hereby explicitly and unambiguously consents to the  collection, use, and transfer, in electronic or other form, of his or her personal information that is  necessary for the purpose of implementing, administering, and managing the Participant’s  participation in the Plan by and among, as applicable, the Company and its Affiliates. The  Participant authorizes the Company and its Affiliates to transfer such personal information to  third parties that assist in the implementation, administration, and management of the Plan.  9. Electronic Delivery and Acceptance. The Company may, in its sole discretion, decide  to deliver any documents related to the RSUs granted under the Plan and participation in the  Plan, or future RSUs that may be granted under the Plan, by electronic means. The Participant  hereby consents to receive such documents by electronic delivery and, if requested, to participate  in the Plan through an online (and/or voice activated) system established and maintained by the  Company or a third party designated by the Company.  10. Government and Other Regulations; Governing Law. This Award Agreement and the  Plan are governed by the laws of the State of Delaware, excluding any conflicts or choice of law  rule or principle that might otherwise refer construction or interpretation of the Plan to the  substantive law of another jurisdiction. The grant of RSUs is subject to all laws, regulations, and  orders of any governmental authority which may be applicable thereto, and, notwithstanding any  of the provisions hereof, the Participant acknowledges that the Company will not be obligated to  issue any Shares hereunder if the grant or vesting thereof or the issuance of such Shares, as the  case may be, would constitute a violation by the Participant or the Company of any such law,  regulation, or order or any provision thereof. The Company shall not be obligated to take any  affirmative action in order to cause the vesting of the RSUs or the issuance of Shares pursuant  hereto to comply with any such law, regulation, order, or provision.    11. Miscellaneous Provisions.  (a) The RSUs are granted under and subject to the terms and conditions of the  Plan, which is incorporated herein and made part hereof by this reference. In the event of a  conflict between the terms of the Plan and this Award Agreement, the terms of the Plan, as  interpreted by the Board or the Committee, shall govern. The Participant hereby acknowledges  receipt of a true copy of the Plan and that the Participant has read the Plan carefully and fully  understands its contents.   (b) This Award Agreement and the Plan constitute the entire contract between the  parties hereto with regard to the subject matter hereof. This Award Agreement and the Plan  supersede any other agreements, representations or understandings (whether oral or written and  whether express or implied) which relate to the subject matter hereof.   (c) If the Participant has received this Award Agreement or any other document  related to the Plan translated into a language other than English and if the translated version is  different than the English version, the English version will control.  (d) The provisions of this Award Agreement are severable and if any one or more  provisions are determined to be illegal or otherwise unenforceable, in whole or in part, the  

 

4862-7418-6554.1  remaining provisions shall nevertheless be binding and enforceable.  (e) This Award Agreement may be executed or deemed executed in two or more  counterparts, each of which shall be deemed an original, but all of which shall constitute one and  the same instrument.ex105offerlettertimkucke

51 E. Hines Hill Road | Boston Heights, Ohio 44236  440.439.7700 | arhaus.com             August 12, 2022    Tim Kuckelman        Dear Tim:    I am very pleased to make you this offer to work for Arhaus. We believe that you will make an  immediate contribution to the executive leadership team in your role as Chief Operating Officer.   The details of the offer are outlined below.      Position Chief Operating Officer    Direct Manager John Reed, CEO    Start Date/   Orientation Date  September 26, 2022    Please arrive at the corporate office at 9:00 am on your start date.  Please  bring acceptable documents to prove your eligibility to work in the  United States (for a list of documents review Form I-9).     Annual Salary $460,000     Bonus You will be eligible for the Annual Corporate Salaried Bonus Plan. Your  target bonus is 60 % of your annual salary. If achieved, the bonus will be  paid in the 1st Quarter of 2023 and will be prorated based on your time in  the position. You must be actively at work on the date that the bonus is  paid and in good standing in order to qualify for payment.      Stock You are being granted stock awards under the Arhaus, Inc. 2021 Equity  Incentive Plan. The awards are in the form of restricted stock units (RSUs)  and performance share units (PSUs) and the details of your grant are  captured below. Additional details will be forthcoming.     Target Performance Share Units:  37,500  Restricted Stock Units:    12,500  Total Units:     50,000    Relocation Package We want to make your move as easy as possible so we are providing you  with the following relocation benefit: $40,000 before taxes and  withholdings and movement of your personal goods through one of our  3PL providers.      If you leave Arhaus for any reason within 12 months of your start date,  

 

51 E. Hines Hill Road | Boston Heights, Ohio 44236  440.439.7700 | arhaus.com             you will be required to repay the Company for all of the Company-paid  costs associated with your relocation. In addition to any other remedies  available to the Company, your signature below authorizes the Company  to withhold this repayment from any sums due to you, including your  final paycheck(s).      Benefits You and your eligible dependents will be offered the opportunity to  participate in the Company’s benefit programs. To view specific plan  information, please visit: https://arhausbenefits.com/.     Benefits are effective the first of the month after 30 days of employment.  Detailed instructions for enrollment in our programs will be provided via  email.       Paid Time Off You will be eligible for vacation days, personal days, and Company  holidays to the extent and under the terms of the Company’s policies.    Prorated for 2022: after 30 days in role, you will be eligible for 10 days  paid time off, in line with the paid time off policy. In 2023, you will be  eligible for 25 days of PTO. Please refer to the Employee Handbook for  PTO policy details.     Executive Severance Should Arhaus choose to terminate your employment with the Company  for any reason other than Cause (as defined below), or should you  voluntarily resign from your employment with the Company for Good  Reason (as defined below) you will be entitled, at the time of such  termination or resignation, to the payment of a lump sum equal to the  sum of:  (a) 50% of the greater of (X) $460,000 or (Y) your highest base  salary rate prior to such termination or resignation; plus (b) a COBRA  stipend covering the six-month period immediately following such  termination or resignation.  Your lump sum payment will be subject to  you signing a standard Arhaus employee severance agreement.     Notwithstanding the provisions of the foregoing paragraph, if you  voluntarily resign from your employment with the Company for any  reason other than Good Reason, you will not receive the lump sum  payment or stipend set forth in the paragraph above.    For purposes of this letter and the severance entitlement set forth above,  “Cause” means (i) an intentional act of fraud, embezzlement, theft or any  other material violation of law that occurs during or in the course of your  employment with the Company; (ii) intentional engagement in any  competitive activity which would constitute a breach of your duty of  loyalty to the Company; or (iii) the willful and continued failure to  substantially perform your duties for the Company (other than as a result  

 

51 E. Hines Hill Road | Boston Heights, Ohio 44236  440.439.7700 | arhaus.com             of incapacity due to physical or mental illness).  For purposes of this  paragraph, an act, or failure to act, shall not be deemed willful or  intentional, as those terms are used herein, unless it is done, or omitted  to be done, by you in bad faith or without a reasonable belief that your  action or omission was in the best interest of the Company.  Failure to  meet performance standards or objectives, by itself, does not constitute  “Cause”.    For purposes of this letter and the severance entitlement set forth above,  “Good Reason” means the occurrence of one or more of the following  events arising without your express written consent, but only if you notify  the Company in writing within thirty (30) days following our awareness of  the occurrence of the event and the event remains uncured for at least  fifteen (15) days after such notice:  (i) a reduction in your base salary  and/or Target Bonus potential; (ii) a diminution in your employee benefits  from those provided to other executives at a similar level, as such  benefits may be modified from time to time; (iii) a material diminution in  your authority, duties or responsibilities; or (iv) the Company requires you  to be based anywhere other than within fifty (50) miles of Boston  Heights, Ohio.    Arhaus is an at-will employer which means that either you or the Company can terminate your  employment at any time for any reason.  As such, this offer does not constitute an employment  contract for specific terms or for a specified duration.  The descriptions of the benefits and bonus  programs (if applicable) contained in this letter are informational summaries.  The Company  reserves the right to change benefit programs at any time and all bonuses are discretionary.    This offer is contingent upon both a successful background verification and your authorization to  work in the United States.  Several forms will need to be completed by you prior to, or on the day  you begin employment with us. You will be contacted on how to access our Associate on-boarding  system.  The team and I look forward to working with you at Arhaus, and expect that you will be a valuable  asset to the company.     Sincerely,      Dawn Phillipson  Chief Financial Officer    On Behalf of: John Reed

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