Document:

Exhibit 10.1
 

 

 

 

	
_____________________________________________________________________
Linens ’n Things, Inc.

Supplemental Executive Retirement Plan

_____________________________________________________________________

 

 

	

Amended and Restated

as of January 1, 2005

 

 

 

 

	

	
Linens ’n Things, Inc.

	
Supplemental Executive Retirement Plan

	

	
 

	

	
 
	
 	
 
	
 	
Page 

	
1
	
. 
	
 	
Purposes 
	
 	
    1 

	
2
	
. 
	
 	
Definitions 
	
 	
    1 

	
3
	
. 
	
 	
Administration 
	
 	
    3 

	
4
	
. 
	
 	
Participation 
	
 	
    3 

	
5
	
. 
	
 	
Benefit Amount 
	
 	
    3 

	
6
	
. 
	
 	
Distributions 
	
 	
    4 

	
7
	
. 
	
 	
Amendment/Termination 
	
 	
    6 

	
8
	
. 
	
 	
General Provisions 
	
 	
    6 

	
9
	
. 
	
 	
Claim and Appeal Procedure 
	
 	
    8 

	
10
	
. 
	
 	
Effective Date 
	
 	
    8 

	

	
 
	
 	
Appendix A 
	
 	
    9 

	

	
 
	
 	
Appendix B 
	
 	
    10 

	

	
 
	
 	
Appendix C 
	
 	
    11 

	

	
Linens ’n Things, Inc.

	
Supplemental Executive Retirement Plan

	

     1.     Purposes.    
The purpose of this Linens ’n Things, Inc. Supplemental Executive Retirement Plan (the “Plan”) is to provide a select group of
management or highly compensated employees of Linens ’n Things, Inc. (the “Company”) and its subsidiaries and certain affiliated entities with a nonqualified defined benefit pension benefit.

     2.     Definitions.     In addition to the terms defined in Section 1 above, the following terms used in the Plan shall have the meanings set forth below:

             (a)     “Administrator” shall mean the Committee.

             (b)     “Benefit Amount” shall have the meaning set forth in Section 5.

 

             (c)     “Board” shall mean the Board of Directors of the Company.

 

             (d)     “Cause” shall have the meaning set forth in a Participant’s employment agreement.

 

             (e)     “Change of Control” shall mean a change in the ownership or effective control of the Company, or in the ownership of a substantial portion of the assets of the Company, as defined and determined under Section 409A(a)(2)(A)(v) of the Code (or its successor provisions), including all guidance issued thereunder.  Without in any way limiting the scope of the preceding sentence, a Change of Control shall be deemed to occur on the date upon which one of the following events occurs:

                       (i)     any one person, or more than one person acting as a group, acquires ownership of stock of the Company that, together with stock held by such person or group, constitutes more than 50% of
either the total fair market value or total voting power of the stock of the Company; or

               
       (ii)     any one person, or more than one person acting as a group, acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition by such person or persons)
ownership of stock of the Company possessing 35% or more of the total voting power of the Company; or

               
       (iii)     a majority of members of the Board is replaced during any 12-month period by directors whose appointment or election is not recommended by a majority of the members of the Board prior to
the date of the appointment or election; or

             
         (iv)     any one person, or more than one person acting as a group, acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition by such person or persons)
assets from the Company that have a total gross fair market value equal to or more than 40% of the total gross fair market value of all of the assets of the Company immediately prior to such acquisition or acquisitions; or

                 
     (v)     the occurrence of a Change in Control, as defined in the Participant’s employment agreement.

           
 (f)      “Code” shall mean the Internal Revenue Code of 1986, as amended. References to any provision of the Code or regulation (including a proposed regulation) thereunder shall include any
successor provisions or regulations.

            (g)     “Committee” shall mean the Compensation Committee of the Board. Any function of the Committee may be delegated to such person or committee or entity as may be elected by the
Committee.

       
     (h)     “Final Average Compensation” shall mean the average of the Participant’s base and bonus taxable compensation (determined without regard to any income deferral elections), but
not including income arising from stock option exercise, restricted stock grants and other forms of equity compensation, for the three (3) calendar years (which need not be consecutive) with the Company, its subsidiaries and affiliates, that yield
the greatest average. For this purpose, the same calendar years need not be used for determining the largest base and bonus compensation amounts. For purposes of determining Final Average Compensation, in the event that the Participant’s
employment terminates during the course of a year as a result of any of the events set forth in Section 11(e) of the Participant’s employment agreement following a Change in Control, base salary for the Participant for such year shall be
annualized for the entire year and bonus for such year shall be equal to the target bonus for the Participant as set forth in his employment agreement, and in the event that Participant’s employment terminates during the course of a year for
any other reason, base salary for such year shall be the pro rata salary paid to the Participant for such year and bonus for such year shall be the bonus to which the Participant is entitled to be paid for such year under the terms of his employment
agreement.

       
     (i)      “Participant” shall mean any employee of the Company or any subsidiary or affiliated entity who is on U.S. payroll and subject to taxation in the United States and who is designated
by the Committee as an eligible Participant in the Plan. Participants shall be listed in Appendix A hereto.

       
     (j)      “Year of Service” shall mean a calendar year in which the Participant was employed by the Company, its predecessors, subsidiaries or its affiliates on a full-time basis for the
majority of the business days therein. In the event that upon cessation of employment the Participant was employed by the Company, its predecessors, subsidiaries or its affiliates on a full-time basis for less than the 

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majority of the business days in that calendar year, then he shall be entitled to a fractional Year of Service, the numerator of which shall be equal to the number of business days actually worked (or deemed worked), and the
denominator of which shall be 260. 

     3.     Administration. 

             (a)     Authority. The Committee shall administer the Plan in accordance
with its terms, and shall have all powers necessary to accomplish such purpose, including the power and authority to construe and interpret the Plan, to define the terms used herein, to prescribe, amend and rescind rules and
regulations, agreements, forms, and notices relating to the administration of the Plan, and to make all other determinations necessary or advisable for the administration of the Plan. Any actions of the Committee with respect to the Plan shall be
conclusive and binding upon all persons interested in the Plan.  The Committee may appoint agents and delegate thereto powers and duties under the Plan, except as otherwise limited by the Plan. The Plan shall be administered in accordance with the
requirements of Section 409A of the Code. Except as otherwise provided herein (including, without limitation, under Section 8(f)), the time or schedule of any payment under the Plan may not be accelerated.

             (b)     Limitation of Liability.  Each member of the Committee shall be entitled to, in good faith, rely or act upon any report or
other information furnished to him or her by any officer or other employee of the Company or any subsidiary or affiliated entity, the Company’s independent certified public accountants, or any executive compensation consultant, legal counsel,
or other professional retained by the Company to assist in the administration of the Plan. To the maximum extent permitted by law, no member of the Committee, nor any person to whom ministerial duties have been delegated, shall be liable to any
person for any action taken or omitted in connection with the interpretation and administration of the Plan.

     4.     Participation. The Administrator will notify each Participant of his or her participation in the Plan at such time as is deemed appropriate.

     5.     Benefit Amount. Upon termination of employment with the Company and its subsidiaries and affiliated entities, a Participant will be entitled to the
Benefit Amount determined hereunder, if the Participant has either attained age 55 or completed ten (10) Years of Service with the Company, its subsidiaries, and/or its affiliated entities.  If the Participant has not then attained age 55, however,
then payment of the Benefit Amount will not occur until attainment of age 55, except as otherwise provided in this Plan. The Benefit Amount is an annual annuity for the life of the Participant, equal to 1.6% times Final Average Compensation times
Years of Service, minus the amount set forth in Appendix B. In no event will the Benefit Amount (that is, the amount of annual annuity) exceed fifty percent (50%) of the Participant’s Final Average Compensation.  In the event that a Participant
becomes entitled to another defined benefit pension benefit from the Company, its subsidiaries or affiliates, then the Benefit Amount will be reduced by the amount of such other defined benefit pension benefit.

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     6. 
   Distributions.

             (a)    

Form of Payment. The Benefit Amount will be paid in the form of a
lump sum, which lump sum will equal the present value (calculated using the interest rate and mortality table set forth in Appendix C) of the annual annuity described above.

           
 (b)     Timing of Payment. The Benefit Amount will be paid as of the first day of the month following the Participant’s
termination of employment, if the Participant has then attained age 55, unless otherwise provided herein. If the Participant has not then attained age 55, then the Benefit Amount will be paid at age 55, unless otherwise provided in this Plan. If a
Participant who is eligible to commence receipt of the Benefit Amount elects to defer commencement of such Benefit Amount, then the Benefit Amount shall be adjusted actuarially (using the mortality factors set forth in Appendix C) to reflect the
delay in payment. Notwithstanding anything else herein to the contrary, in the event that payment of the Benefit Amount within six months following a Participant’s termination of employment would violate the requirements of Section
409A(a)(2)(b)(i) (or its successor), then payment of the Benefit Amount will be delayed until such six month period has ended. In the event that a Participant’s distribution is delayed pursuant to the requirements of the preceding sentence,
then the delayed payment shall be adjusted for interest at a rate of 8% per annum (compounded daily) for the time between the scheduled date of payment and the actual delayed payment date. Any deferral of commencement of the Benefit Amount must
comply with the requirements of Section 409A(a)(4)(C).

            
(c)     Change of Control.  Notwithstanding anything else herein to the contrary, upon the occurrence of a Change of Control, all
Participants will automatically become fully vested hereunder and have an immediate right to receive the Benefit Amount (regardless of the Participant’s age or Years of Service, and regardless of whether the Participant is then employed by the
Company). The Participant need not terminate employment in order to receive the Benefit Amount under this Section 6(c).

            
(d)     Disability. In the event that the Participant becomes disabled, and if such Participant has attained age 55 or completed
ten (10) Years of Service, and if such Participant has been determined to be disabled and eligible for benefits under the Company’s long term disability plan, then such Participant will receive the Benefit Amount as of the first day of the
month following such determination; provided, however, that if the Participant has not then attained age 55, then commencement will not occur until he attains age 55. In such
event, however, the Participant may elect to defer commencement of the Benefit Amount until such time as he thereafter elects (but not later than age 65), during which deferral period he shall continue to accrue additional Years of Service for
purposes of the Benefit Amount, but his Final Average Compensation shall be determined as of the onset of his disability. In the event that the Participant has neither attained age 55 nor 

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completed ten (10) Years of Service at the time of the onset of disability, then he shall be treated as accruing additional age and Years of Service (but not compensation) during the period of disability, until he has satisfied the criteria for payment hereunder.  Any
deferral of commencement of the Benefit Amount must comply with the requirements of Section 409A(a)(4)(C).  For purposes of this paragraph, a Participant shall be considered to be disabled if (i) he is unable to engage in any substantial gainful
activity by reason of any medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, or (2) he is, by reason of any medically
determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, receiving income replacement benefits for a period of not less than 3 months under an
accident and health plan covering employees of the Company.

       
     (e)     Termination without Cause.    In the event that a Participant is terminated by the Company for reasons other than Cause
prior to a Change of Control, then notwithstanding anything else herein to the contrary, the Participant will be fully vested and entitled to immediate payment (subject to any required delay in payment of no more than six months, as set forth in
Section 6(b) hereof) of his Benefit Amount (regardless of the Participant’s age or Years of Service), payable in the form of a lump sum. In this instance only, however, the Benefit Amount will be  adjusted actuarially (using the factors set
forth in Appendix C) if the Participant has not attained age 55 as of the date of payment. 

       
     (f)      Preretirement Death Benefits. In the event that a Participant dies prior to the date as of which payment of the Benefit
Amount is to be paid, then no benefit shall be payable under the Plan with respect to such Participant and/or his or her beneficiary.

             (g)     Forfeiture for Criminal Conviction; Noncompetition Covenant. 

                      (i)     In the event that the Participant, by reason of his own individual actions and not vicariously, is convicted of an indictable criminal offense (and such conviction is no longer subject to appeal) related to or involving the business or operations of the Company, including
financial fraud, embezzlement, or other similar crime, and the Board has reasonably determined that such criminal conduct by the Participant has caused significant damage to the business or reputation of the Company, the Participant will irrevocably
forfeit all rights to the Benefit Amount hereunder. In the event of a forfeiture of the Benefit Amount in accordance with the foregoing and which occurs after all or part of such Benefit Amount has been paid by the Company, the Participant shall be
obligated to repay the Company such forfeited amount.

                     
(ii)     The Participant agrees not to compete with the Company, on the terms set forth in Section 14 of his employment agreement, for the “Restriction Period” set forth in Section 14 of
his employment agreement. In the event of a violation of such covenant, the Company shall be entitled to injunctive relief as well as provable compensatory damages.

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 7.     Amendment/Termination. The Committee may, with prospective or retroactive effect, amend, alter, suspend, discontinue, or terminate the Plan at any time
without the consent of stockholders or any other person; provided, however, that no such action shall affect any Participant without obtaining the written consent thereto by such
Participant.

     8.    General Provisions.

             (a)     Limits on Transfer of Awards. Other than by will or the laws of
descent and distribution, no right, title or interest of any kind in the Plan shall be transferable or assignable by a Participant or his or her Beneficiary or be subject to alienation, anticipation, encumbrance, garnishment,
attachment, levy, execution or other legal or equitable process, nor subject to the debts, contracts, liabilities or engagements, or torts of any Participant or his or her beneficiary.  Any attempt to alienate, sell, transfer, assign, pledge,
garnish, attach or take any other action subject to legal or equitable process or encumber or dispose of any interest in the Plan shall be void.

            
(b)     Receipt and Release. Payments to any Participant in accordance with the provisions of the Plan shall, to the extent
thereof, be in full satisfaction of a Participant’s Benefit Amount to which the payments relate.

            
(c)     Unfunded Status of Awards: Creation of Trusts.  The Plan is intended to constitute an “unfunded” plan for
deferred compensation and Participants shall rely solely on the unsecured promise of the Company or applicable affiliated entity for payment hereunder.  With respect to any payment not yet made to a Participant under the Plan, nothing contained in
the Plan shall give a Participant any rights that are greater than those of a general unsecured creditor of the Company or the applicable affiliated entity; provided, however, that
the Committee may authorize the creation of trusts (including the purchase of certain life insurance products) or make other arrangements to meet the Company's obligations under the Plan, which trusts or other arrangements shall be consistent with
the “unfunded” status of the Plan unless the Committee otherwise determines with the consent of each affected Participant.

            
(d)     Compliance. The Company shall impose such restrictions on any interest constituting a security as may be required in order
to comply with the Securities Act of 1933, as amended, the requirements of the New York Stock Exchange or any other applicable stock exchange or automated quotation system, any state securities laws applicable to such a transfer, any provision of
the Company's Certificate of Incorporation or Bylaws, or any other law, regulation, or binding contract to which the Company is a party.

            
(e)     Other Participant Rights.  No provision of the Plan or transaction hereunder shall confer upon any Participant any right
to be employed by the Company or a subsidiary or affiliate thereof, or to interfere in any way with the right of the Company or a subsidiary or affiliate to increase or decrease the amount of any 

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other compensation payable to such Participant. The Plan shall inure to the benefit of, and be binding upon, the parties hereto and their successors and assigns.

             (f)     
Tax Withholding.  The Company and any subsidiary or affiliated entity shall have the right to deduct from amounts
otherwise payable in settlement of a Benefit Amount any sums that federal, state, local or foreign tax law requires to be withheld with respect to such payment.

            
Amounts payable under this Plan will be subject to FICA withholding at such times and in such amounts as determined by the Administrator, under Section 3121(v) of the Code and the regulations
thereunder. FICA withholding amounts will be withheld and/or paid from non-deferred compensation or from such other sources (including from the applicable Benefit Amount) as is determined by the Administrator.

            
(g)     Legal Fees.  In the event that a dispute arises between the Participant and the Company regarding his rights under this
Plan, then the Company shall pay the Participant’s reasonable costs and expenses (including fees and disbursements of legal counsel) incurred by him in connection with such dispute. Such payments shall be made by the Company as the costs and
expenses are incurred by Participant, and shall be paid within ten (10) days of submission by Participant of appropriate invoices.  In the event that it is determined by a court of law that the Participant incurred the costs and expenses in bad
faith, then he will be required to reimburse the Company upon such a determination by a court of law. 

            
(h)     Governing Law. The validity, construction, and effect of the Plan and any rules and regulations relating to the Plan shall
be determined in accordance with the laws of the State of New Jersey, without giving effect to principles of conflicts of laws, and applicable provisions of federal law.

            
(i)      Construction. The captions and numbers preceding the sections of the Plan are included solely as a matter of convenience
of reference and are not to be taken as limiting or extending the meaning of any of the terms and provisions of the Plan. Whenever appropriate, words used in the singular shall include the plural or the plural may be read as the singular, and male
references shall include female and neuter, and vice versa.

            
(j)       Severability.  In the event that any provision of the Plan shall be declared illegal or invalid for any reason, said
illegality or invalidity shall not affect the remaining provisions of the Plan but shall be fully severable, and the Plan shall be construed and enforced as if said illegal or invalid provision had never been inserted herein.

            
(k)     Status.  The establishment and maintenance of the rights of Participants hereunder shall not vest in any Participant any
right, title or interest in and to any specific assets or benefits except at the time or times and upon the terms and conditions and to the extent expressly set forth in the Plan.

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     9.     Claim and Appeal Procedure. The Administrator shall provide adequate notice in writing to any Participant or beneficiary (“Claimant”) whose
claim for benefits under the Plan has been denied. The Administrator’s notice to the Claimant shall set forth:

             (a)     The specific reason for the denial;

            
(b)     Specific references to pertinent Plan provisions upon which the Administrator based its denial;

            
(c)     A description of any additional material and information that is needed; and

            
(d)     That any appeal the Claimant wishes to make of the adverse determination must be in writing to the Administrator within seventy-five (75) days after receipt of the Administrator’s notice
of denial of benefits.  The Administrator’s notice must further advise the Claimant that his failure to appeal the action to the Administrator in writing within the seventy-five (75) day period will render the Administrator’s determination
final, binding and conclusive.

            
If the Claimant should appeal to the Administrator, he, or his duly authorized representative, may submit, in writing, whatever issues and comments he or his duly authorized representative feels
are pertinent.  The Claimant, or his duly authorized representative, may review pertinent Plan documents.  The Administrator shall re-examine all facts to the appeal and make a final determination as to whether the denial of benefits is justified
under the circumstances. The Administrator shall advise the Claimant of its decision within sixty (60) days of the Claimant’s written request for review, unless special circumstances (such as a hearing) would make the rendering of a decision
within the sixty (60) day limit unfeasible, but in no event shall the Administrator render a decision respecting a denial for a claim of benefits later than one hundred twenty (120) days after its receipt of a request for
review.

            
The Administrator’s notice of denial of benefits shall identify the name and address to whom the Claimant may forward his appeal.

     10.   Effective Date. The Plan was originally made effective as of July 1, 1999. The Plan as amended and restated is effective as of January 1, 2005.

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 APPENDIX A 

	
 

	
Participant 
	
 	
 Effective Date 

	
 	
 	
  
	
Norman Axelrod 
	
 	
 July 1, 1999 

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APPENDIX B

             For Norman Axelrod, the annual Benefit Amount, as defined in the second sentence of Section 5, shall be reduced by the amount determined below (but not below zero) and prorated accordingly
between ages:

	
Age at Termination of Employment 
	
 	
Reduction Amount 

	
 	
 	
 	
 	
 	
 	
 
	
Age 
	
 	
52 
	
 	
$ 
	
 	

19,177 

	
Age 
	
 	
53 
	
 	
$ 
	
 	

98,075 

	
Age 
	
 	
54 
	
 	
$ 
	
 	

194,162 

	
Age 
	
 	
55 
	
 	
$ 
	
 	

343,225 

	
Age 
	
 	
56 
	
 	
$ 
	
 	

524,248 

	
Age 
	
 	
57 
	
 	
$ 
	
 	

717,411 

	
Age 
	
 	
58 
	
 	
$ 
	
 	

928,617 

	
Age 
	
 	
59 
	
 	
$ 
	
 	

1,174,029 

	
Age 
	
 	
60 
	
 	
$ 
	
 	
1,465,287 

            The above amounts will be prorated for the number of completed calendar months between the Participant’s birthday and his termination of employment.

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APPENDIX  C

Mortality: 1983 GAM Table (Unisex Variation)

Interest: 5.5%

- 11 -Exhibit 10.2

 

 

 

 

Linens ‘n Things, Inc. 

Defined Contribution Supplemental

Executive Retirement Plan 

 

 

 

 

 

 

	

LINENS ‘N THINGS, INC.

 

DEFINED CONTRIBUTION SUPPLEMENTAL 

EXECUTIVE RETIREMENT PLAN 

 

	

ARTICLE I - PURPOSE; EFFECTIVE DATE

 

	
1.1.      	
Purpose. The purpose of this Defined Contribution Supplemental Executive Retirement Plan (hereinafter, the "Plan”) is to permit the company to provide a select
group of management and highly compensated employees of LINENS ‘N THINGS, INC. and its subsidiaries with an additional benefit payable upon termination of service. The intent of the Plan is that LINENS ‘N THINGS, INC. will make annual
allocations, either positive or negative, to each Participant’s Account based on profitability, performance and other factors determined by reference to the increase or decrease in value of certain identified assets of the Company. In the case
of Norman Axelrod, the increase or decrease in value will be by reference to the life insurance policy or policies owned and maintained by the Company effective as of the effective date of this Plan. These Accounts will increase or decrease in value
over time and be made available to the participants upon their normal retirement, or as otherwise provided by this Plan. It is intended that this Plan, by providing this benefit, will assist the Company in attracting, motivating and retaining
individuals of exceptional ability.
	 
	
1.2.      	
Effective Date. The Plan shall be effective as of July 1, 2004.
	 

	
ARTICLE II - DEFINITIONS

For the purpose of this Plan, the following terms shall have the meanings indicated, unless the context clearly indicates otherwise: 

	
2.1.      	
Account. "Account" means the account maintained on the books of the Company as a liability reserve account, used solely to calculate the amount payable to each
Participant under this Plan and shall not constitute a separate fund of assets. Such Account shall be adjusted each Determination Date by the Annual Retirement Credit as defined herein. The Account balance may be positive or negative.
	 
	
2.2.      	
Account Balance. “Account Balance” means the liability reserve account on the books of the Company for the benefit of the Participant. Such liability
reserve account shall be adjusted each Determination Date by the Annual Retirement Credit in order to reflect the Policy Gain as defined herein. The Account Balance may be positive or negative.
	 

	
2.3.      	
Actuarial Equivalent. "Actuarial Equivalent" means an equivalence in value between two (2) or more forms and/or times of payment based on sound actuarial assumptions
as of the time of such determination as agreed to by the parties.
	 
	
2.4.      	
Annual Retirement Credit. “Annual Retirement Credit” means the amount credited to the Participant’s Account Balance as of each Determination Date,
which shall be equal to the Policy Gain for the preceding twelve months divided by 0.615. The Annual Retirement Credit shall be determined as soon as possible after the Determination Date each year, and shall be credited to the Account as provided
in Article IV. It is intended that the Annual Retirement Credit for each particular year may be negative or positive.
	 
	
2.5.      	
Beneficiary. "Beneficiary" means the person, persons or entity as designated by the Participant, entitled under Article VI to receive any Plan benefits payable after
the Participant's death.
	 
	
2.6.      	
Board. “Board” means the Board of Directors of LINENS ‘N THINGS, INC.
	 
	
2.7.      	
Change in Control. A "Change in Control" shall mean a change in the ownership or effective control of the Company, or in the ownership of a substantial portion of the
assets of the Company, as defined and determined under Section 409A(a)(2)(A)(v) of the Code (or its successor provisions), including all guidance issued thereunder.  Without in any way limiting the scope of the preceding sentence, a Change of Control shall be deemed to occur on the date upon which one of the following events occurs:

      
     

	
 	
          (i)     any one person, or more than one person acting as a group, acquires ownership of stock of the Company that, together with stock held by such person or group, constitutes more than 50%
of either the total fair market value or total voting power of the stock of the Company; or
	
 	
 
	
 	
          (ii)     any one person, or more than one person acting as a group, acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition by such person or
persons) ownership of stock of the Company possessing 35% or more of the total voting power of the Company; or 
	
 	
 
	
 	
          (iii)     a majority of members of the Board is replaced during any 12-month period by directors whose appointment or election is not recommended by a majority of the members of the Board
prior to the date of the appointment or election; or
	
 	
 
	
 	
          (iv)     any one person, or more than one person acting as a group, acquires (or has acquired during the 12-month period ending on the date of the most recent acquisition by such person or
persons) assets from the Company that have a total gross fair market value equal to or more than 40% of the total gross fair market value of all of the assets of the Company immediately prior to such acquisition or acquisitions; or 
	
 	
 
	
           	
          (v)     the occurrence of a Change in Control, as defined in the Participant’s employment agreement. 

      

	
2.8.      	
Committee. "Committee" means the Compensation Committee of the Board.
	 
	
2.9.      	
Company. "Company" means LINENS ‘N THINGS, INC., a Delaware corporation, and any directly or indirectly affiliated subsidiary corporations, any other affiliate
designated by the Board, or any successor to the business thereof.
	 
	
2.10.      	
Determination Date. "Determination Date" means each July 1st.
	 
	
2.11.      	
Disability. "Disability" means a physical or mental condition whereby the Participant: (i) is unable to engage in any substantial gainful activity by reason of any
medically determinable physical or mental impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, or (ii) is, by reason of any medically determinable physical or mental
impairment which can be expected to result in death or can be expected to last for a continuous period of not less than 12 months, receiving income replacement benefits for a period of not less than 3 months under an accident and health plan
covering employees of the participant’s employer.
	 
	
2.12.      	
Financial Hardship. "Financial Hardship" means a severe financial hardship to the Participant resulting from an illness or accident of the Participant, the
Participant’s spouse, or a dependent (as defined in Section 152(a) of the Internal Revenue Code of 1986, as amended (the “Code”)) of the Participant, loss of the Participant’s property due to casualty, or other similar
extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the participant.
	 
	
2.13.      	
Life Insurance Policies. “Life Insurance Policies” means the life insurance policies identified in the attached Exhibit A, which may be amended from time to
time. Such Life Insurance Policies shall be owned by and payable to the Company; the Participants shall have no rights or interest in the Policies or any benefits therefrom. The Life Insurance Policies shall be used solely as method to measure the
benefits, if any, payable under this Plan, and the Participants shall have no greater interest in the benefits under this Agreement than that of an unsecured creditor of the Company.
	 
	
2.14.      	
Normal Retirement Age. “Normal Retirement Age” means the date on which the Participant attains age fifty-five (55).
	 
	
2.15.      	
Participant. "Participant" means any employee who is eligible, pursuant to Section 3.1, below, to participate in this Plan, and who has elected to do so in accordance
with Article III, below, and who has received an Annual Retirement Credit under this Plan.  Such employee shall remain a Participant in this Plan until such time as all benefits payable under this Plan have been paid in accordance with the provisions hereof.
	 

	
2.16.      	
Plan. "Plan" means this Supplemental Executive Retirement Plan, as it may be amended from time to time.
	 
	
2.17.      	
Policy Gain. “Policy Gain” means the annual gains or losses on the Life Insurance Policies listed on the attached Exhibit A calculated and determined as of
each Determination Date in accordance with FASB Technical Bulletin 85-4 for the period of the prior July 1 through the most recent June
30th. Nothing in this
Agreement shall be construed to grant any rights or interests in any asset of the Company, including the Life Insurance Policies, to any Participant; the Life Insurance Policies will be used solely as a method to measure the Annual Retirement
Credit, and therefore the benefits, if any, payable to a Participant. The Participants shall at all times remain general, unsecured creditors of the Company with respect to the benefits payable under this Plan.
	 
	 	
In the event that any Policy ceases to exist due to the death of the insured or the surrender of the Policy, then the annual Policy Gain with respect to that Policy shall be determined by multiplying the cumulative
Policy Gains with respect to that particular Policy by eight percent (8%).
	 
	
2.18.      	
Specified Employees. “Specified Employees” means a key employee, as defined in Section 416 (i) of the Code, without regard to paragraph (5) thereof, of the
Company.
	 

ARTICLE III - ELIGIBILITY AND PARTICIPATION

	
3.1.      	
Eligibility and Participation.
	 
	 	
a)      	
Eligibility. Eligibility to participate in the Plan shall be limited to those select group of management and/or highly compensated employees of Company who are
designated and approved by the Committee from time to time. As of the effective date of this Plan, Normal Axelrod is the sole Participant.
	 	
b)      	
Participation. An employee's participation in the Plan shall be effective upon notification to the employee by the Committee of eligibility to participate, and
completion and submission of a Participation Agreement, or otherwise indicated agreement to participate in this Plan, to the Committee no later than thirty (30) days after receiving notification of participation. As of the Effective date of this
Plan, Norman Axelrod is the sole Participant in this Plan, and he has satisfied all criteria required for participation herein.
	 

	
ARTICLE IV - BENEFIT ACCOUNT

 

	
4.1.      	
Accounts; Timing of Credits. A Participant’s Accounts shall be used solely to calculate the amount payable to each Participant under this Plan and shall not
constitute a separate fund of assets. Annual Retirement Credits shall be credited to the Participant's Account as of each Determination Date. By way of example; the Policy Gain determined for the period between July 1, 2004 and June 30, 2005 shall
be credited as of July 1, 2005, even though the Policy Gain will not be determinable until shortly after July 1, 2005. Any distribution of the Participant’s Account on or after July 1, 2005 will include the Policy Gain credited as of that July
1, 2005.
	 
	
4.2.      	
Withholding. Any withholding of taxes or other amounts with respect to an Annual Retirement Credit that is required by local, state or federal law shall be withheld
from compensation otherwise payable to the Participant to the maximum extent possible, and any remaining amount shall reduce the amount credited to the Participant's Account in a manner specified by the Committee.
	 
	
4.3.      	
Determination of Accounts. Each Participant's Account as of each Determination Date shall consist of the balance of the Account as of the immediately preceding
Determination Date, adjusted as follows:
	 
	 	
a)      	
Annual Retirement Credits. As of each Determination Date, a Participant’s Account shall be adjusted by any Annual Retirement Credits determined since such prior
Determination Date as set forth above and as directed by the Committee.
	 
	 	
b)      	
Interest. In the event that a Participant receives a distribution of his Account more than 20 days after the most recent Determination Date, his Account shall be
adjusted for interest at a rate of 8% per annum (compounded daily) for the time between the prior Determination Date and the date of such distribution.
	 
	 	
c)      	
Distributions. Each Account shall be reduced by the amount of each benefit payment made from that Account since the prior Determination Date.
	 
	
4.4.      	
Vesting of Accounts. Each Participant shall be 100% vested in the Account at all times, except that the Account may decrease in value as a result of negative Annual
Retirement Credits being applied.
	 
	
4.5.      	
Statement of Accounts. The Committee shall give to each Participant a statement showing the balance in the Participant's Account on an annual basis.
	 
	
4.6.      	
Forfeiture for Criminal Conviction; Noncompetition Covenant.
	 
	 	
a)      	
In the event that the Participant, by reason of his own individual actions and not vicariously, is convicted of an indictable criminal offense (and such conviction is no longer subject to appeal) related to or
involving the business or operations of
	 

	 	 	
the Company, including financial fraud, embezzlement, or other similar crime, and the Board has reasonably determined that such criminal conduct by the Participant has caused significant damage to the business or
reputation of the Company, the Participant will irrevocably forfeit all rights to the Account hereunder. In the event of a forfeiture of the Account in accordance with the foregoing and which occurs after all or part of such Account has been paid by
the Company, the Participant shall be obligated to repay the Company such forfeited amount.
	 
	
     	
b) 	
The Participant agrees not to compete with the Company, on the terms set forth in Section 14 of his employment agreement, for the “Restriction Period” set forth in Section 14 of his employment agreement. In
the event of a violation of such covenant, the Company shall be entitled to injunctive relief as well as provable compensatory damages.
	 

	
ARTICLE V - PLAN BENEFITS

 

	
5.1.      	

Normal Retirement. Upon termination of service with the Company on or after attaining Normal Retirement Age, the Participant's Account shall be distributed to the
Participant in a lump sum on the July 1st immediately following such termination or as soon as is practical thereafter, except to the extent that the payment must
be delayed pursuant to the requirements of Section 5.5, and except as may be otherwise elected under Section 5.6.

	 
	
5.2.      	
Prior to Normal Retirement Age. In the event of termination of service with the Company prior to the Participant’s Normal Retirement Age, the Participant's
Account shall be distributed to the Participant in a lump sum on the July 1st immediately following the Participant’s attainment of Normal Retirement Age, or
as soon as is practical thereafter, except to the extent that payment must be delayed pursuant to the requirements of Section 5.5, and except as may be otherwise elected under Section 5.6. Notwithstanding the preceding sentence, in the event that a
Participant’s employment is terminated for any reason (regardless of whether the employment is terminated by the Company or the Participant) following the occurrence of a Change of Control, then the Participant’s Account shall be
distributed to the Participant in a lump sum as soon as practicable thereafter, regardless of his or her age, except to the extent that the payment must be delayed pursuant to the requirements of Section 5.5, and except as may be otherwise elected
under Section 5.6.
	 
	
5.3.      	
Death Benefit. Upon the death of a Participant prior to the commencement of benefits under this Plan, Company shall pay to the Participant's Beneficiary the
Participant’s Account in a lump sum as soon as practical. In the event of the death of the Participant after the 
	 

	 	
commencement of benefits under this Plan, the
Company shall pay to the Participant’s Beneficiaries the remaining unpaid Account Balance, if any, at the same time and in the same manner as if the Participant had survived. Benefits under this paragraph shall be in lieu of any other
benefits described in this Plan.
	 
	
5.4.      	
Hardship Distributions. Upon a finding that a Participant has suffered a Financial Hardship or Disability, the Committee may, in its sole discretion, make
distributions from any or all of the Participant’s vested Account balances. The amount of such distribution shall be limited to the amount reasonably necessary to meet the Participant's needs resulting from the Financial Hardship or Disability,
plus amounts necessary to pay taxes reasonably anticipated as a result of such distribution. In determining the amount of such distribution, the Committee shall take into account the extent to which such hardship is or may be relieved through
reimbursement or compensation by insurance or otherwise or by liquidation of the Participant’s assets (to the extent that the liquidation of such assets would not itself cause severe financial hardship).
	 
	
5.5.      	
Payment to Specified Employees. Payments of benefits from the Account caused by the termination of employment (including death) of a Participant who is determined to
meet the definition of Specified Employee shall be payable as otherwise provided, except that the initial payment shall be made no earlier than the six (6) months following the termination of employment with the Company if such delay in payment is
required in order to comply with the requirements of Section 409A of the Code.
	 
	
5.6.      	
Form of Payment. As provided elsewhere in this Article, the Participant may request that any amounts that become payable in the form of a lump sum instead be made in
an Actuarial Equivalent form, provided such request is filed with the Committee no later than twelve (12) months prior to the date the benefits would otherwise become payable, and the date of commencement of payment as specified in such request
shall be no earlier than five (5) years after the scheduled date of commencement in effect immediately prior to the filing of such request, and further provided that compliance with such request would not be in violation of the requirements of
Section 409A of the Code.  The Committee may accept or deny such request in its sole and absolute discretion, but in no event will the form of benefit permitted be greater than ten (10) annual installments.
	 
	
5.7.      	
Withholding; Payroll Taxes. Company shall withhold from any payment made pursuant to this Plan (or distribute from any Account) any taxes required to be withheld from
such payments under local, state or federal law. A Beneficiary, however, may elect not to have withholding of federal income tax pursuant to Section 3405(a)(2) of the Code, or any successor provision thereto.
	 
	
5.8.      	
Payment to Guardian. If a Plan benefit is payable to a minor or a person declared incompetent or to a person incapable of handling the disposition of the property,
the Committee may direct payment to the guardian, legal representative or person having the care and custody of such minor, incompetent or person. The Committee may require proof of 
	 

	 	
incompetency, minority, incapacity or guardianship as it may
deem appropriate prior to distribution. Such distribution shall completely discharge the Committee and Company from all liability with respect to such benefit.
	 
	
5.9.      	
Effect of Payment. The full payment of the applicable benefit under this Article V shall completely discharge all obligations on the part of the Company to the
Participant (and the Participant’s Beneficiary) with respect to the operation of this Plan, and the Participant’s (and Participant’s Beneficiary’s) rights under this Plan shall terminate.
	 

	
ARTICLE VI - BENEFICIARY DESIGNATION

 

	
6.1.      	
Beneficiary Designation. Each Participant shall have the right, at any time, to designate one (1) or more persons or entity as Beneficiary (both primary as well as
secondary) to whom benefits under this Plan shall be paid in the event of Participant's death prior to complete distribution of the Participant's vested Account balance. Each Beneficiary designation shall be in a written form prescribed by the
Committee and shall be effective only when filed with the Committee during the Participant's lifetime.  Designation by a married Participant to the Participant's spouse of less than a fifty percent (50%) interest in the benefit due shall not be effective unless the spouse executes a written consent that acknowledges the
effect of the designation, or it is established that the consent cannot be obtained because the spouse cannot be located.
	 
	
6.2.      	
Changing Beneficiary. Any Beneficiary designation may be changed by an unmarried Participant without the consent of the previously named Beneficiary by the filing of
a new Beneficiary designation with the Committee. A married Participant's Beneficiary designation may be changed by a Participant with the consent of the Participant's spouse as provided for in Section 6.1 above, by the filing of a new designation
and such new filing shall cancel all designations previously filed.
	 
	
6.3.      	
Change in Marital Status. If the Participant's marital status changes after the Participant has designated a Beneficiary, the following shall apply:
	 
	 	
a)      	
If the Participant is married at death but was unmarried when the designation was made, the designation shall be void unless the spouse has consented to it in the manner prescribed in Section 6.1 above.
	 
	 	
b)      	
If the Participant is unmarried at death but was married when the designation was made:
	 	 	
i)      	
The designation shall be void if the spouse was named as Beneficiary.
	 	 	
ii)      	
The designation shall remain valid if a non-spouse Beneficiary was named.
	 

	 	
c)      	
If the Participant was married when the designation was made and is married to a different spouse at death, the designation shall be void unless the new spouse has consented to it in the manner prescribed in Section
6.1 above.
	 
	
6.4.      	
No Beneficiary Designation. If any Participant fails to designate a Beneficiary in the manner provided above, if the designation is void, or if the Beneficiary
designated by a deceased Participant dies before the Participant or before complete distribution of the Participant's benefits, the Participant's Beneficiary shall be the person in the first of the following classes in which there is a
survivor:
	 
	 	
a)      	
The Participant's surviving spouse;
	 
	 	
b)      	
The Participant's children in equal shares, except that if any of the children predeceases the Participant but leaves surviving issue, then such issue shall take by right of representation the share the deceased child
would have taken if living;
	 
	 	
c)      	
The Participant's estate.
	 
	
6.5.      	
Effect of Payment. Payment to the Beneficiary shall completely discharge the Company's obligations under this Plan.
	 

	
ARTICLE VII - ADMINISTRATION

 

	
7.1.      	
Committee; Duties. This Plan shall be administered by the Committee. The Committee shall have the authority to make, amend, interpret and enforce all appropriate
rules and regulations for the administration of the Plan and decide or resolve any and all questions, including interpretations of the Plan, as they may arise in such administration.
	 
	
7.2.      	
Agents. The Committee may, from time to time, employ agents and delegate to them such administrative duties as it sees fit, and may from time to time consult with
counsel who may be counsel to the Company.
	 
	
7.3.      	
Indemnity of Committee. The Company shall indemnify and hold harmless the members of the Committee against any and all claims, loss, damage, expense or liability
arising from any action or failure to act with respect to this Plan on account of such member's service on the Committee, except in the case of gross negligence or willful misconduct.
	 

	
ARTICLE VIII - CLAIMS PROCEDURE

 

	
8.1.      	
Claim. Any person or entity claiming a benefit, requesting an interpretation or ruling under the Plan (hereinafter referred to as "Claimant"), or requesting
information under the Plan shall present the request in writing to the Committee, which shall respond in writing as soon as practical, but not later than ninety (90) days after receipt of the claim.
	 
	
8.2.	
Denial of Claim. If the claim or request is denied, the written notice of denial shall state:
	 
	 	
a)      	
The reasons for denial, with specific reference to the Plan provisions on which the denial is based;
	 
	 	
b)      	
A description of any additional material or information required and an explanation of why it is necessary; and
	 
	 	
c)      	
An explanation of the Plan's claim review procedure, including a statement of the Claimant’s right to bring a civil action under Section 502(a) of ERISA if the claim denial is appealed to the Board and the Board
fully or partially denies the claim.
	 
	
8.3.      	
Review of Claim. Any Claimant whose claim or request is denied or who has not received a response within sixty (60) days may request a review by notice given in
writing to the Committee. Such request must be made within sixty (60) days after receipt by the Claimant of the written notice of denial, or in the event Claimant has not received a response sixty (60) days after receipt by the Committee of
Claimant's claim or request. The claim or request shall be reviewed by the Committee which may, but shall not be required to, grant the Claimant a hearing. On review, the claimant may have representation, examine pertinent documents, and submit
issues and comments in writing.
	 
	
8.4.      	
Final Decision. The decision on review shall normally be made within sixty (60) days after the Committee's receipt of claimant's claim or request. If an extension of
time is required for a hearing or other special circumstances, the Claimant shall be notified and the time limit shall be one hundred twenty (120) days. The decision shall be in writing and shall state the reasons and the relevant Plan
provisions.
	 

ARTICLE IX - AMENDMENT AND TERMINATION OF PLAN

	
9.1.      	
Amendment. The Committee may at any time amend the Plan by written instrument executed by all Committee members, notice of which shall be given to all Participants
and to any Beneficiary receiving installment payments, subject to the following:
	 

	 	
a)      	
Preservation of Account Balance. No amendment shall reduce the amount accrued in any Account as of the date such notice of the amendment is given.
	 
	 	
b)      	
Change in Control. Notwithstanding the foregoing, the Plan may not be amended in any material respect, except as is provided below in section 9.2, following a Change
in Control.
	 
	
9.2.      	
Company's Right to Terminate. The Committee may at any time partially or completely terminate the Plan. The Committee may completely terminate the Plan by written
instrument executed by the Committee and approved by the Board. In the event of complete termination, the Plan shall cease to operate and Company shall distribute the Account to the appropriate Participant in a lump sum. Notwithstanding the
foregoing Section 9.2, the Plan may not be terminated in whole or in part if such termination would cause the Plan to be noncompliant with Section 409A of the Code, and no termination or amendment may reduce or adversely affect any rights of a
Participant in the Plan or any rights with respect to the Plan as may exist in any employment agreement of a Participant.
	 

	
ARTICLE X - MISCELLANEOUS

 

	
10.1.      	
Unfunded Plan. This plan is an unfunded plan maintained primarily to provide deferred compensation benefits for a select group of "management or highly- compensated
employees" within the meaning of Sections 201, 301, and 401 of the Employee Retirement Income Security Act of 1974, as amended ("ERISA"), and therefore is exempt from the provisions of Parts 2, 3 and 4 of Title I of ERISA.  Accordingly, the Committee may terminate the Plan and make no further benefit payments or remove certain employees as Participants if it is determined by the United States Department of Labor, a court of competent
jurisdiction, or an opinion of counsel that the Plan constitutes an employee pension benefit plan within the meaning of Section 3 (2) of ERISA (as currently in effect or hereafter amended) which is not so exempt.
	 
	
10.2.      	
Company Obligation. The obligation to make benefit payments to any Participant under the Plan shall be an obligation solely of the Company with respect to the
benefits receivable from, and allocations by, that Company and shall not be an obligation of another company.
	 
	
10.3.      	
Unsecured General Creditor. Notwithstanding any other provision of this Plan, Participants and Participants’ Beneficiary shall be unsecured general creditors,
with no secured or preferential rights to any assets of Company or any other party for payment of benefits under this Plan. Any property held by Company for the purpose of generating the cash flow for benefit payments shall remain its general,
unpledged and unrestricted assets. Company's obligation under the Plan shall be an unfunded and unsecured promise to pay money in the future.
	 

	 
	
10.4.      	
Trust Fund. Company shall be responsible for the payment of all benefits provided under the Plan. At its discretion, Company may establish one (1) or more trusts,
with such trustees as the Committee may approve, for the purpose of assisting in the payment of such benefits. Although such a trust may be irrevocable, its assets shall be held for payment of all Company's general creditors in the event of
insolvency. To the extent any benefits provided under the Plan are paid from any such trust, Company shall have no further obligation to pay them. If not paid from the trust, such benefits shall remain the obligation of Company.
	 

	
10.5.      	
Nonassignability. Neither a Participant nor any other person shall have any right to commute, sell, assign, transfer,
pledge, anticipate, mortgage or otherwise encumber, transfer, hypothecate or convey in advance of actual receipt the amounts, if any, payable hereunder, or any part thereof, which are, and all rights to which are, expressly declared to be
unassignable and non-transferable.  No part of the amounts payable shall, prior to actual payment, be subject to seizure or sequestration for the payment of any debts, judgements, alimony or separate maintenance owed by a Participant or any other
person, nor be transferable by operation of law in the event of a Participant's or any other person's bankruptcy or insolvency.
	
 	
 

	
10.6.      	
Not a Contract of Employment. This Plan shall not constitute a contract of employment between Company and the Participant. Nothing in this Plan shall give a
Participant the right to be retained in the service of Company or to interfere with the right of the Company to discipline or discharge a Participant at any time.
	 
	
10.7.      	
Protective Provisions. A Participant will cooperate with Company by furnishing any and all information requested by Company, in order to facilitate the payment of
benefits hereunder, and by taking such physical examinations as Company may deem necessary and taking such other action as may be requested by Company.
	 
	
10.8.      	
Legal Fees. In the event that a dispute arises between the Participant and the Company regarding his rights under this Plan, then the Company shall pay the
Participant’s reasonable costs and expenses (including fees and disbursements of legal counsel) incurred by him in connection with such dispute. Such payments shall be made by the Company as the costs and expenses are incurred by Participant,
and shall be paid within ten (10) days of submission by Participant of appropriate invoices.  In the event that it is determined by a court of law that the Participant incurred the costs and expenses in bad faith, then he will be required to reimburse the Company upon such a determination by a court of
law.
	 
	
10.9.      	
Governing Law. The provisions of this Plan shall be construed and interpreted according to the laws of the State of New Jersey, except to the extent that federal law
controls.
	 

	
10.10.      	
Validity. If any provision of this Plan shall be held illegal or invalid for any reason, said illegality or invalidity shall not affect the remaining parts hereof,
but this Plan shall be construed and enforced as if such illegal and invalid provision had never been inserted herein.
	 
	
10.11.      	
Notice. Any notice required or permitted under the Plan shall be sufficient if in writing and hand delivered or sent by registered or certified mail. Such notice
shall be deemed given as of the date of delivery or, if delivery is made by mail, as of the date shown on the postmark on the receipt for registration or certification. Mailed notice to the Committee shall be directed to the company's address.
Mailed notice to a Participant or Beneficiary shall be directed to the individual's last known address in company's records.
	 
	
10.12.      	
Successors. The provisions of this Plan shall bind and inure to the benefit of Company and its successors and assigns. The term successors as used herein shall
include any corporate or other business entity which shall, whether by merger, consolidation, purchase or otherwise acquire all or substantially all of the business and assets of Company, and successors of any such corporation or other business
entity.
	 

	
 Exhibit A 

	
 

	
Carrier 
	
 	
 Policy No.
	
 	
 	
  
	
Lincoln Financial Group 
	
 	
 I0045640
	
Nationwide Life Insurance Company	
 	
 N056205610

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