Document:

Exhibit 10.42

Exhibit 10.42

April 22, 2009

Mr. Raphael Benaroya

c/o Biltmore Capital Group LLC

365 West Passaic Street

Rochelle Park, New Jersey 07662-6563

Dear Raphael:

The Board of Directors is appreciative of the contributions you have made to the Company as
Chairman of the Board, and desires that you expand your efforts on behalf of the Company.

1. Duties. It is expected that you will commit the time necessary to assist the Company in
the development, review and implementation of strategic initiatives. It is not intended that you
become involved in day-to-day operations, although it is contemplated that you will work with the
Chief Executive Officer in developing and implementing these strategic initiatives.

2. Fees. As compensation for your expanded services, you will receive a fee of $35,000 per
month. This fee shall be in lieu of your regular director’s and committee fees. The Company will
continue to reimburse you for your reasonable out-of-pocket expenses upon the same terms as
reimbursement is made to other directors of the Company. It is recognized that you will no longer
be serving as a member of the Nominating and Governance Committee.

3. Term. This agreement may be terminated by the Company or by you on one week’s prior
written notice. The fee payable to you pursuant to paragraph 2 for the month in which this
agreement is terminated shall be a pro rata fee based on the number of days in the month prior to
which the written notice becomes effective.

4. Employment Status. You shall continue in the status of an independent contractor of the
Company. You shall not be an employee and shall not be eligible to participate in the Company’s
employee benefit plans except to the extent that non-employee directors are expressly authorized to
participate therein.

5. Amendment. This agreement may not be amended except by a written agreement entered into
by each of you and the Company.

6. Governing Law. This agreement shall be governed by the laws of New Jersey.

 

 

 

If the foregoing is in accordance with you understanding of our agreement, please sign and return
one copy of this letter to me.

	 	 	 	 	 
	 	Sincerely,

 	 
	 	/s/ Fred Horowitz
 	 
	 	Fred Horowitz 	 
	 	Chairman, Compensation Committee
of the Board of Directors 	 
	 

Acknowledged and Agreed

this 22nd day of April, 2009

/s/ Raphael Benaroya

Raphael Benaroya

Chairman of the Board

 

2exhibit10-1.htm

    

    

    Exhibit
10.1

    

    

    AMENDMENT
No. 2

     to
the

    BURLINGTON
COAT FACTORY HOLDINGS, INC.

    2006
MANAGEMENT INCENTIVE PLAN

    

    

    This
Amendment No. 2 (“Amendment”) to the Burlington Coat Factory Holdings, Inc. 2006
Management Incentive Plan (the “Plan”) is made as of the 19th day of March
2009.

    

    WHEREAS,
the Plan was adopted by the Board of Directors of Burlington Coat Factory
Holdings, Inc., a Delaware corporation (the “Corporation”) as of April 13, 2006;
and

    

    WHEREAS,
the Plan was previously amended by Amendment No. 1 thereto dated as of December
2, 2008; and

    

    WHEREAS,
the Board desires to further amend the Plan to increase the number of shares of
capital stock available for Awards to be granted under the Plan;

    

    NOW,
THEREFORE, the Plan is amended as follows:

    

    
      	
              1.  

            	
              All
      defined terms used in this Amendment shall have the meanings ascribed to
      them under the Plan.

            

    

    
      	
              2.  

            	
              The
      first sentence of Section 4(a) of the Plan is hereby deleted and replaced
      by the following:

            

    

    “A
maximum of 6,574,302 shares of Class A Common and 730,478 shares of Class L
Common may be delivered in satisfaction of Awards under the Plan.”

             
3.  All other terms and conditions of the Plan are hereby confirmed
and ratified.exhibit10-2.htm

    Exhibit
10.2

    

    Burlington
Coat Factory Holdings, Inc.

    2006
Management Incentive Plan

    

    THIS
AWARD AND ANY SECURITIES ISSUED UPON EXERCISE OF THIS OPTION ARE SUBJECT TO
RESTRICTIONS ON VOTING AND TRANSFER AND REQUIREMENTS OF SALE AND OTHER
PROVISIONS AS SET FORTH HEREIN AND IN THE STOCKHOLDERS AGREEMENT AMONG
BURLINGTON COAT FACTORY HOLDINGS, INC. AND CERTAIN INVESTORS AND MANAGERS, DATED
AS OF APRIL 13, 2006 (THE “STOCKHOLDERS AGREEMENT”).  THIS OPTION AND
ANY SECURITIES ISSUED UPON EXERCISE OF THIS OPTION CONSTITUTE “MANAGEMENT
SHARES” AS DEFINED THEREIN.

    

    

    Burlington
Coat Factory Holdings, Inc.

    Non-Qualified Stock Option
Agreement

    

    This
agreement evidences a stock option granted by Burlington Coat Factory Holdings,
Inc., a Delaware corporation (the “Company”), to the undersigned (the
“Employee”), pursuant to, and subject to the terms of the Burlington Coat
Factory Holdings, Inc. 2006 Management Incentive Plan (the “Plan”), which is
incorporated herein by reference and of which the Employee hereby acknowledges
receipt.  For the purpose of this Agreement, the “Grant Date” shall
mean _________, 2009.  Capitalized terms not otherwise defined herein
shall have the meanings set forth in the Plan.

    

     

    1. Grant of
Option.  This certificate evidences the grant by the Company on
the Grant Date to the Employee of an option to purchase (the “Option”), in whole
or in part, on the terms provided herein and in the Plan, the following Units as
set forth below.

     

    
      	
              (a)  

            	
              [«Tranch1»]
      Units at $90 per Unit (the “Tranche 1 Options”);
  and

            

    

     

    
      	
              (b)  

            	
              [«Tranch2»]
      Units at $180 per Unit (the “Tranche 2 Options” and together with the
      Tranche 1 Options, the “Options”).

            

    

     

    Each
“Unit” consists of 9 shares of Class A Common Stock of the Company, par value
$.001 per share, and 1 share of Class L Common Stock of the Company, par value
$.001 per share, subject to adjustment as provided in the Plan.  The
Option evidenced by this certificate is not intended to qualify as an incentive
stock option under Section 422 of the Internal Revenue Code (the
“Code”).

     

    2. Vesting and
Exercisability.

     

    
      	
              (a)  

            	
              Vesting of
      Units. Except as otherwise specifically provided herein, the
      Options shall vest according to the following
  schedule:

            

    

     

    
      	
              (i)  

            	
              40%
      on second anniversary of the Grant
Date;

            

    

     

    
      	
              (ii)  

            	
              20%
      on third anniversary of the Grant
Date;

            

    

     

    
      	
              (iii)  

            	
              20%
      on fourth anniversary of the Grant Date;
and

            

    

     

    
      	
              (iv)  

            	
              20%
      on the fifth anniversary of the Grant
Date.

            

    

     

    All
Options shall become exercisable in the event of a Change of Control (as defined
in the Stockholders Agreement).

     

    
      
         

      

      
         

        
          

        

      

      
         

      

    

     

    
      	
              (b)  

            	
              Exercisability of
      Option .  Subject to the terms of the Plan, Options may
      be exercised in whole or in part at any time following such time as such
      Option vests.  The latest date on which an Option may be
      exercised (the “Final Exercise Date”) is the date which is the tenth
      anniversary of the Grant Date, subject to earlier termination in
      accordance with the terms and provisions of the Plan and this
      Agreement.  For the avoidance of doubt the Option may only be
      exercised for whole Units and not any individual component shares
      thereof.

            

    

     

    3. Exercise of Option.
Each election to exercise this Option shall be subject to the terms and
conditions of the Plan and shall be in writing, signed by the Employee or by his
or her executor or administrator or by the person or persons to whom this Option
is transferred by will or the applicable laws of descent and distribution (the
“Legal Representative”), and made pursuant to and in accordance with the terms
and conditions set forth in the Plan.

     

    4. Cessation of
Employment.  Unless the Administrator determines otherwise, the
following will apply if the Employee’s Employment ceases:

     

    
      	
              (a)  

            	
              Options
      that have not vested will terminate
immediately.

            

    

     

    
      	
              (b)  

            	
              Units
      that were issued upon an exercise of the Option (including Units issued
      upon exercise of Options contemplated by clause (c) below) will be subject
      to the call options described in Sections 5 of the Stockholders
      Agreement.

            

    

     

    
      	
              (c)  

            	
              Subject
      to the terms of Section 6(a)(3) of the Plan, the vested Options will
      remain exercisable for the shorter of (i) a period of 60 days or (ii) the
      period ending on the Final Exercise Date, and will thereupon
      terminate.

            

    

     

    5. Share Restrictions,
etc.  The Employee’s rights with respect to the Option and
shares of Stock issued upon exercise of the Option are subject to the
restrictions and other provisions contained in the Plan and the Stockholders
Agreement in addition to such other restrictions, if any, as may be imposed by
law.  In the event of a conflict between the Plan and the Stockholders
Agreement, the Stockholders Agreement shall control.

     

    6. Legends, Retention of
Shares, etc.  Shares of  Stock comprising Units
issued upon exercise of the Option shall bear such legends as are required by
the Stockholders Agreement and as may be determined by the Administrator prior
to issuance.  Unvested Units purchased by the Employee upon an
exercise of the Option may be retained by the Company until such Units
vest.

     

    7. Transfer of Option.
This Option is not transferable by the Employee other than in accordance with
the Stockholders Agreement.

     

    8. Effect on
Employment.  Neither the grant of this Option, nor the issuance
of Units upon exercise of this Option shall give the Employee any right to be
retained in the employ of the Company or its Affiliates, affect the right of the
Company or its Affiliates to discharge or discipline the Employee at any time or
affect any right of Employee to terminate his employment at any
time.

     

    9. Certain Important Tax
Matters.  The Employee expressly acknowledges that the
Employee’s rights hereunder, including the right to be issued Units upon
exercise of Options, are subject to the Employee promptly paying to the Company
in cash (or by such other means as may be acceptable to the Administrator in its
discretion) all taxes required to be withheld.  The Employee also
authorizes the Company or its subsidiaries to withhold such amount from any
amounts otherwise owed to the Employee.

     

    10. Provisions of the
Plan.  This Option is subject in its entirety to the provisions
of the Plan, which are incorporated herein by reference.  A copy of
the Plan as in effect on the date of the grant of this Option has been furnished
to the Employee.  By exercising all or any part of this Option, the
Employee agrees to be bound by the terms of the Plan and this
Option.  In the event of any conflict between the terms of this Option
and the Plan, the terms of this Option shall control.

     

    
      
         

      

      
        2

        
          

        

      

      
         

      

    

     

    11. General.  For
purposes of this Option and any determinations to be made by the Administrator
hereunder, the determinations by the Administrator shall be binding upon the
Employee and any transferee.

     

    Furthermore,
by acceptance of this Option, the undersigned agrees hereby to become a party
to, and be bound by the terms of, the Stockholders Agreement as a Manager (and
to the extent the undersigned is not already a party thereto, the undersigned
shall execute a joinder thereto in form and substance acceptable to the
Company).  The Option and shares of Stock comprising Units issued upon
exercise of the Option will be treated as Management Shares under the
Stockholders Agreement.

    In
Witness Whereof, the undersigned Company and Employee each have executed this
Non-Qualified Stock Option Agreement as of the ___ day of_________,
2009.

    

    

    
      	
              The
      Company:

            	
              BURLINGTON COAT FACTORY
      HOLDINGS, INC.

            

    

    

    

    By:
____________________________

    Name:

    Title:

    

    

    The
Employee:

    ________________________________

    [                      ]

    
      
         

      

      
        3

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