Exhibit 10.1

 

SECOND AMENDMENT TO EMPLOYMENT AGREEMENT

 

THIS SECOND AMENDMENT TO EMPLOYMENT AGREEMENT is made and entered into to be
effective as of the 9th day of August, 2004, by and between Herbert J Zarkin of
One Mercer Road, Natick, Massachusetts 02649 (“Executive”) and BJ’s Wholesale
Club, Inc., a Delaware corporation, the principal office of which is in Natick,
Massachusetts (the “Company”).

 

W I T N E S S E T H:

 

WHEREAS, the Company and Executive are parties to that certain Employment
Agreement dated July 28, 1997, and amended as of September 14, 2000 (the
“Existing Employment Agreement”); and

 

WHEREAS, the Company and Executive desire to amend certain provisions of the
Existing Employment Agreement hereby;

 

NOW, THEREFORE, in consideration of the mutual promises and covenants
hereinafter set forth, the sufficiency of which is hereby acknowledged, the
parties hereto, intending to be legally bound, do hereby amend and modify the
Existing Employment Agreement as follows:

 

A. Section 1 of the Existing Employment Agreement shall be deleted in its
entirety and replaced with the following:

 

  “1.

EFFECTIVE DATE; TERM OF AGREEMENT. This Agreement originally became effective as
of July 28, 1997. The first amendment of this agreement became effective as of
September 14, 2000 and the second amendment of this agreement became effective
as of August 9, 2004. Except where the context may otherwise require, references
to this “Agreement” shall be deemed to include the amendments to this Agreement
from and after their effective date. This Agreement shall supercede any other
employment agreement between the Executive and the Company, including its
predecessors, other than the Change of Control Severance

 

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Agreement between the Executive and the Company, dated as of February 4, 1999
(“Change of Control Agreement”). Executive’s employment with the Company shall
continue on the terms provided herein until the date of the Company’s 2007
Annual Meeting of Stockholders, at which time this Agreement and Executive’s
employment by the Company shall terminate, subject to earlier termination as
provided herein (such period of employment hereinafter referred to as
“Employment Period”) and further subject to the survival of those provisions of
this Agreement that by their terms have continuing effect.”

 

B. Section 2(b) of the Existing Employment Agreement shall be deleted in its
entirety and replaced with the following:

 

“(b) Extent of Services. Executive shall devote all of the time he spends
working and his attention and his best efforts to the performance of his duties
and responsibilities under this Agreement to the Company. Nothing in this
Section 2(b) shall prohibit the Executive from (i) serving in any capacity with
charitable or not-for-profit enterprises or trade or professional organizations;
(ii) making any passive investments where Executive is not obligated or required
to, and shall not in fact, devote any managerial efforts; or (iii) subject to
the prior approval of the independent directors of the Board and limitations set
forth in the Company’s Corporate Governance Principals, holding directorships in
other public companies.”

 

C. Section 3(a) of the Existing Employment Agreement shall be amended by
replacing the first phrase thereof with the following:

 

“Executive shall be paid a base salary at the rate of $525,000 per year (the
“Base Salary”);”

 

D. Section 5(a) of the Existing Employment Agreement shall be deleted in its
entirety and replaced with the following:

 

“(a) Certain Terminations for Death, Disability or Incapacity; Termination by
Company without Cause. If the Employment Period shall be terminated prior to the
date of the Company’s 2007 Annual Meeting of Stockholders (i) by reason of
Death, Disability or Incapacity of Executive, or (ii) by termination by the
Company for any reason other than Cause, then all compensation and benefits for
Executive shall be as follows:”

 

E. Section 5(a)(iv) of the Existing Employment Agreement shall be deleted in its
entirety and replaced with the following:

 

“(iv) Executive shall also be entitled to the benefits with respect to any Stock
Options or other Stock-based award held by Executive on his

 

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termination of employment as provided under the terms of any agreements or other
instruments of grant related thereto or any applicable Company equity incentive
plan including, without limitation, the benefit of continued vesting following
such termination of employment; provided that for options granted prior to
August 9, 2004, if any such option does not expire by its terms (or the terms of
the option plan under which it was issued) by the first anniversary of the
Company’s 2007 Annual Meeting of Stockholders, then such options shall be
exercisable until and terminate on such first anniversary, but in no event later
than the third anniversary of the termination of his employment.”

 

F. Section 5(b) of the Existing Employment Agreement shall be amended by
replacing the first phrase thereof with the following:

 

“If prior to the date of the Company’s 2007 Annual Meeting of Stockholders,”

 

G. Section 5 of the Existing Employment Agreement is amended to add the
following the new subsection 5(d):

 

“5(d) Termination Upon Expiration of the Employment Period. In the event the
Executive’s employment ceases on the date of the Company’s 2007 Annual Meeting
of Stockholders as contemplated by Section 1 of this Agreement, all compensation
and benefits otherwise payable to him pursuant to this Agreement shall cease,
other than (x) such amounts as Executive shall have deferred (but not received)
under the Company’s General Deferred Compensation Plan in accordance with the
provisions of that Plan, and (y) any benefits to which the Executive may be
entitled under other Company plans to the extent, if any, such plans provide
benefits following such termination of employment.”

 

H. Section 12 of the Existing Employment Agreement shall be amended by replacing
the first phrase thereof with the following:

 

“This Agreement, including Exhibit A, supercedes”

 

The Existing Employment Agreement, as modified and amended by this Second
Amendment to Employment Agreement, sets forth the understanding of the parties
with respect to the subject matter hereof and all other terms and conditions of
the Existing Employment Agreement not modified or amended hereby shall remain
and are in full force and effect.

 

* * * * *

 

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IN WITNESS WHEREOF, the parties have executed this Second Amendment to
Employment Agreement to be effective as of the date first above written.

 

        EXECUTIVE:

/s/ Susan Zarkin

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/s/    Herbert J Zarkin        

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Witness

      Herbert J Zarkin

 

        BJ’S WHOLESALE CLUB, INC.

/s/ Kellye L. Walker

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      By:  

/s/    Michael T. Wedge        

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Attest

         

Michael T. Wedge,

President and Chief Executive Officer