Document:

Separation Pay Agreement and General Release

 Exhibit 10.2 
 AGREEMENT AND GENERAL RELEASE 
 THIS SEPARATION PAY AGREEMENT AND
GENERAL RELEASE (the “Agreement”) dated as of January 5, 2011, is entered into between Thomas F. Gallagher (the “Executive”), and BJ’s Wholesale Club, Inc. (“BJ’s”) a Delaware corporation, whose principal
office is One Mercer Road, Natick, Massachusetts 01760. 
 WHEREAS, the parties wish to resolve finally the Executive’s
conclusion of employment with BJ’s and any claims that the Executive may have arising out of the Executive’s employment with BJ’s, and establish the terms of a transition with a release of claims; 

NOW, THEREFORE, in consideration of the promises and conditions set forth herein, the sufficiency of which is hereby acknowledged,
BJ’s and the Executive agree as follows: 
  

	1.	Employment End Date. The Executive’s duties and responsibilities as Executive Vice President, Club Operations of BJ’s will terminate on
January 29, 2011 (the “Employment End Date”). 

  

	2.	Severance Compensation and Benefits. In return for the execution and non-revocation of the Agreement no later than February 4, 2011, and provided that on or
before such date the Executive signs and does not revoke the release attached hereto as Exhibit A, BJ’s agrees to provide the Executive with the following compensation and benefits: 

 

	 	a)	Separation Pay. Executive shall receive weekly payments in accordance with BJ’s regular payroll practices of $9,894.00 for the period commencing on
January 29, 2011 and ending on March 9, 2012, less all applicable withholding for income and employment taxes. BJ’s and Executive acknowledge that Executive’s separation from service with BJ’s is voluntary, that Executive
is, therefore, not entitled to separation pay under any other agreement, including an Employment Agreement dated April 3, 2007, and that Executive’s right to separation pay arises solely under this Agreement and constitutes consideration
beyond that to which he was previously entitled. 

  

	 	b)	Additional Payment. In addition, BJ’s shall pay Executive the separate sum of $455,148 divided into weekly installments commencing March 16, 2012 and
ending February 1, 2013. 

  

	 	c)	Insurance Benefits. Executive shall be covered by BJ’s medical, dental and life insurance plans from January 29, 2011 through February 1, 2013 to
the extent that he receives such coverage as of the Employment End Date; thereafter Executive will be eligible to participate in BJ’s retiree medical program. 

 

	 	d)	Restricted Stock Awards. In recognition of the forfeiture of the Executive’s unvested restricted stock which may result under the terms of BJ’s stock
incentive plans as a result of Executive’s ending his employment with BJ’s, the Executive shall receive the following payments on the dates indicated: 

 

					
	 Payment Date
	  	Payment Amount	 
	 7/29/11
	  	$	660,000	  
	 5/21/12
	  	$	660,000	  
	 6/6/13
	  	$	440,000	  

  

	 	e)	Other Benefits. Except as provided above, the Executive’s eligibility to participate in any of BJ’s employee benefits plans and programs shall cease.

  

	 	f)	Estate Payments. In the event of Executive’s death, any of the amounts set out in paragraphs (a), (b) and (d) of this Section shall be paid to the
Executive’s estate. 

  

	3.	Agreement Not to Solicit or Compete. 

  

	 	a)	From January 29, 2011 through February 1, 2013, the Executive will not directly or indirectly: 

 

	 	1)	Engage in any business or enterprise (whether as owner, partner, officer, director, employee, consultant, investor, lender or otherwise, except as the holder of not
more than 1% of the outstanding stock of a publicly-held company) that is competitive with BJ’s business, including any store or business operated or owned by Wal-Mart Stores, Inc., Costco Wholesale Corporation, or any of the respective
affiliates thereof; or 

  

	 	2)	Either alone or in association with others (i) solicit, or permit any organization directly or indirectly controlled by the Executive to solicit, any employee of
BJ’s to leave the employ of BJ’s, or (ii) solicit for employment, hire or engage as an independent contractor, or permit any organization directly or indirectly controlled by the Executive to solicit for employment, hire or engage as
an independent contractor, any person employed by BJ’s from January 29, 2011 through February 1, 2013. 

  

	 	b)	Interpretation. If any restriction set forth in Section 3(a) is found by any court to be unenforceable because it extends for too long a period of time or
over too great a range of activities or in too broad a geographic area, it shall be interpreted to extend to the maximum extent it may be enforceable. 

  

	 	c)	Equitable Remedies. The restrictions contained in this Section 3 are necessary for the protection of the business and goodwill of BJ’s and are
considered by the Executive to be reasonable for such purpose. The Executive agrees that, in the event of any such breach or threatened breach of this section, in addition to such other remedies which may be available, BJ’s shall have the right
to obtain an injunction from a court restraining such a breach or threatened breach and the right to specific performance of the provisions of this Section 3, and the Executive hereby waives the adequacy of a remedy at law as a defense to such
relief. 

  

	4.	Proprietary Information. 

  

	 	a)	The Executive agrees that all information, whether or not in writing, of a private, secret or confidential nature concerning BJ’s business, business relationships
or financial affairs (collectively, “Proprietary Information”) is and shall be the exclusive property of BJ’s. 

  

	 	b)	The Executive agrees that all documents, electronic or other tangible material containing Proprietary Information, whether created by the Executive or others shall be
and are the exclusive property of BJ’s. All such materials or copies thereof and all tangible property of BJ’s, shall be delivered to BJ’s upon the earlier of (i) a request by BJ’s or (ii) the Employment End Date,
unless such materials are necessary for Executives continued work with BJ’s under a written contractual arrangement. 

  

					
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	 	c)	The Executive agrees not to disclose or to use information and materials of the types set forth in paragraphs (a) and (b) above without written approval by an
executive officer of BJ’s. 

  

	 	d)	The restrictions contained in this Section 4 are necessary for the protection of the business and goodwill of BJ’s and are considered by the Executive to be
reasonable. The Executive agrees that any breach of this Section 4 is likely to cause BJ’s substantial and irrevocable damage which is difficult to measure. Therefore, in the event of any such breach or threatened breach, the Executive
agrees that BJ’s, in addition to such other remedies which may be available, shall have the right to obtain an injunction restraining such a breach or threatened breach and the right to specific performance of the provisions of this
Section 4, and the Executive hereby waives the adequacy of a remedy at law as a defense to such relief. 

  

	5.	Release of Claims. In consideration of BJ’s entering into this Agreement and the promises and benefits provided herein, the Executive hereby fully, forever,
irrevocably and unconditionally releases, remises and discharges BJ’s and its current and former officers, directors, stockholders, corporate affiliates, subsidiaries, predecessors, agents, employees and attorneys (the “Released
Parties”) from any and all claims, actions and causes of action, whether now known or unknown, that he has or at any other time had, or shall or may have against those Released Parties based upon or arising out of any matter, cause, fact,
thing, act or omission whatsoever occurring or existing at any time up to and including the date on which he signs this Agreement, including, but not limited to, any common law or statutory claims relating to his employment or termination from
employment such as claims of wrongful termination in violation of public policy or under any other theory, breach of contract, fraud, negligent misrepresentation, defamation, infliction of emotional distress, or any other tort claim; claims of
discrimination or harassment based upon national origin, race, age, sex, disability, sexual orientation or retaliation under the Civil Rights Act of 1964, the Civil Rights Act of 1991, the Age Discrimination in Employment Act, the Americans With
Disabilities Act, or any other applicable Federal, State, or local law prohibiting discrimination; claims under the federal Family and Medical Leave Act, the Worker Adjustment and Retraining Notification Act or any other federal, state or local law,
rule, regulation or ordinance that is applicable to my employment with the Company; or claims for vacation, sick or personal leave pay, short term or long term disability benefits, or payment pursuant to any practice, policy, handbook or manual of
BJ’s. Executive acknowledges that he has no lawsuits, claims or actions pending in his name or on his behalf against the Released Parties, and also expressly waives any and all remedies that may be available under any statute or the common law,
including, without limitation, back pay, front pay, other damages, attorney’s fees, court costs and reinstatement. 

  

	6.	Indemnification. BJ’s agrees to hold harmless and indemnify Executive, including reasonable attorney’s fees, costs and for all claims arising out of
any lawsuits, charges of discrimination, or wage claims, for which the Executive would be indemnified if an employee of BJ’s. 

  

	7.	Future Cooperation. Following the Employment End Date, the Executive agrees to cooperate with BJ’s and all of its affiliates (including its outside counsel)
in connection with the contemplation, prosecution and defense of existing, past and future litigation and regulatory or administrative actions about which BJ’s believes the Executive may have knowledge. 

 

	8.	Notices. Any and all notices to be given hereunder shall be in writing and shall be given to another party if personally served, or if sent by Federal Express or
a similar national overnight carrier (“Federal Express”). If such notice is served personally, notice shall be deemed constructively made at the time of such personal service. If such notice, is given by Federal Express, such notice shall
be conclusively deemed given one day after delivery to Federal Express addressed to the party to whom such notice is to be given as follows: 

  

			
	If to Executive:	  	Thomas F. Gallagher
		  	At his last known home address
		
	If to the Company:	  	General Counsel
		  	BJ’s Wholesale Club, Inc
		  	25 Research Drive
		  	Westborough, MA 01581

  

					
	LP11:ECC/TFG Release	 	3	 	

  

	9.	Amendment. This Agreement shall be binding upon the parties and may not be modified in any manner, except by an instrument in writing of concurrent or subsequent
date signed by duly authorized representatives of the parties hereto. 

  

	10.	Assignment. The rights and obligations of BJ’s shall inure to the benefit of and shall be binding upon the successors and assigns of BJ’s. The rights
and obligations of the Executive are not assignable except only those payments payable to the Executive after the Executive’s death, which shall be made to the Executive’s estate. 

 

	11.	Waiver of Rights. No delay or omission by BJ’s in exercising any right under this Agreement shall operate as a waiver of that or any other right. A waiver
or consent given by BJ’s on any one occasion shall be effective only in that instance and shall not be construed as a bar or waiver of any right on any other occasion. 

 

	12.	Validity. Should any provision of this Agreement be declared or be determined by any court of competent jurisdiction to be illegal or invalid, excluding the
general release language, the validity of the remaining parts, terms or provisions shall not be affected thereby and said illegal or invalid part, term or provision shall be deemed not to be a part of this Agreement. However, if the general release
language is found to be invalid, the Executive agrees to execute a valid release of the claims which are the subject of this Agreement. 

  

	13.	Confidentiality. The Executive understands and agrees that as a condition for payment to the Executive of separation pay pursuant to Section 2, the terms
and contents of this Agreement and the contents of the negotiations and discussions resulting in this Agreement, shall be maintained as confidential by the Executive and the Executive’s spouse, advisors and attorneys and shall not be disclosed
except to the extent required by federal or state law or as otherwise agreed to in writing by BJ’s. 

  

	14.	Acknowledgments and Revocation. The Executive affirms that no other promises or agreements of any kind have been made to or with the Executive by any person or
entity to cause the Executive to sign this Agreement and that he understands the terms herein. The Executive acknowledges that the Executive has been given at least twenty-one days to consider this Agreement, and that BJ’s has advised the
Executive to consult with an attorney of his own choosing prior to signing this Agreement. The Executive further understands that he may revoke this Agreement for a period of seven days after the Executive signs it. Any revocation within this period
must be submitted, in writing, as provided for in Section 8 of this Agreement. This Agreement shall not be effective or enforceable until the expiration of the revocation period. Executive understands and agrees that by entering into this
Agreement he is waiving all rights or claims the Executive might have under The Age Discrimination in Employment Act, as amended by The Older Workers Benefit Protection Act, and that the Executive has received consideration beyond that to which he
was previously entitled. 

  

					
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	15.	Applicable Law. This Agreement shall be interpreted and construed in accordance with the laws of the Commonwealth of Massachusetts, without regard to conflict of
laws provisions, and Executive consents to jurisdiction of the courts of the Commonwealth of Massachusetts for the resolution of any matter arising under this Agreement. 

 

	16.	Entire Agreement. This Agreement contains and constitutes the entire understanding and agreement between the parties hereto with respect to Executive’s
termination of employment with BJ’s, separation pay and the settlement of claims against BJ’s and cancels all previous oral and written negotiations, agreements, commitments and writings in connection therewith. 

IN WITNESS WHEREOF, the parties hereto set their hands and seals to this Agreement as of the day and year first above written.

  

			
	 /s/ Thomas F. Gallagher

	Thomas F. Gallagher
	
	BJ’S WHOLESALE CLUB, INC
		
	By	 	 /s/ Laura J. Sen

	Laura J. Sen
	President and Chief Executive Officer

  

					
	LP11:ECC/TFG Release	 	5	 	

 EXHIBIT A 
 GENERAL RELEASE 
 In consideration of the promises made in the SEPARATION PAY
AGREEMENT AND GENERAL RELEASE dated January 5, 2011, between Thomas F. Gallagher (the “Executive”) and BJ’s Wholesale Club, Inc. (“BJ’s”), the Executive hereby fully, forever, irrevocably and unconditionally
releases, remises and discharges BJ’s and its current and former officers, directors, stockholders, corporate affiliates, subsidiaries, predecessors, agents, employees and attorneys (the “Released Parties”) from any and all claims,
actions and causes of action, whether now known or unknown, that he has or at any other time had, or shall or may have against those Released Parties based upon or arising out of any matter, cause, fact, thing, act or omission whatsoever occurring
or existing at any time up to and including the date on which he signs this Agreement, including, but not limited to, any common law or statutory claims relating to his employment or termination from employment such as claims of wrongful termination
in violation of public policy or under any other theory, breach of contract, fraud, negligent misrepresentation, defamation, infliction of emotional distress, or any other tort claim; claims of discrimination or harassment based upon national
origin, race, age, sex, disability, sexual orientation or retaliation under the Civil Rights Act of 1964, the Civil Rights Act of 1991, the Age Discrimination in Employment Act, the Americans With Disabilities Act, or any other applicable Federal,
State, or local law prohibiting discrimination; claims under the federal Family and Medical Leave Act, the Worker Adjustment and Retraining Notification Act or any other federal, state or local law, rule, regulation or ordinance that is applicable
to my employment with the Company; or claims for vacation, sick or personal leave pay, short term or long term disability benefits, or payment pursuant to any practice, policy, handbook or manual of BJ’s. Executive acknowledges that he has no
lawsuits, claims or actions pending in his name or on his behalf against the Released Parties, and also expressly waives any and all remedies that may be available under any statute or the common law, including, without limitation, back pay, front
pay, other damages, attorney’s fees, court costs and reinstatement. 
  

					
	     1/5/11
	 		 	 /s/ Thomas F. Gallagher

	Date	 		 	Thomas F. Gallagher

  

					
	LP11:ECC/TFG Release	 	6Consulting Agreement, dated January 5, 2011

 Exhibit 10.3 
 CONSULTING AGREEMENT 
 This CONSULTING AGREEMENT (the
“Agreement”) dated as of January 5, 2011, is entered into between Frank D. Forward (the “Consultant”) and BJ’s Wholesale Club, Inc. (“BJ’s” or the “Company”). 

WITNESSETH 

WHEREAS, Consultant has a unique historical knowledge of the Company; 

WHEREAS, Consultant has significant institutional and industry knowledge and expertise in the retail and wholesale sectors; and

 WHEREAS, the Company desires to utilize the expert advice and consultation assistance of Consultant in the field in which
Consultant has professional and experiential qualifications. 
 NOW THEREFORE, in consideration of the promises and conditions
set forth herein, the sufficiency of which is hereby acknowledged, the Company and Consultant agree as follows: 
  

	1.	Consulting Services. Company agrees to engage Frank D. Forward to provide strategic advice and expert guidance to executives of the Company
(“Services”). Consultant will provide such consultation to Laura Sen, President and Chief Executive Officer of the Company (the “CEO”), Robert W. Eddy, Chief Financial Officer (the “CFO”) and to the other members of the
Company’s Senior Leadership Team. Consultant’s Services, which are anticipated to require 50% of Consultant’s time, shall include, but are not limited to the following: 

 

	 	a.	Supporting the on-going transition of the CFO; 

  

	 	b.	Providing input to the CEO and CFO on setting the strategic direction of the business and expansion opportunities for the business; and 

 

	 	c.	Remaining current on the operation and financial performance of the Company to provide advice and counsel as needed or requested by the CEO, CFO and/or the Senior
Leadership Team on financial reporting, investor relations and other topics. 

  

	2.	Compensation. BJ’s agrees to pay Consultant for Services rendered pursuant to this Agreement at the rate of $300,000 per 12 month period (“Consulting
Fee”). The Company shall pay Consultant his Consulting Fee in twelve equal monthly lump sum installments. Consultant shall be reimbursed for all reasonable travel expenses incurred in the course of the provision of Services.

 LP11:ECC/Consulting Agreement Forward 

  

	3.	Term and Termination of Agreement. 

  

	 	a.	This Agreement shall be effective as of January 31, 2011 and shall terminate on February 1, 2013 (“Term”) unless otherwise terminated under this
paragraph or by the mutual assent of the parties. 

  

	 	b.	The Company shall have the right to terminate this Agreement upon sixty days written notice to Consultant, if Consultant shall fail to provide the services set forth in
this Agreement, and the Consultant shall have the right to terminate this agreement upon sixty days written notice for any reason. 

  

	 	c.	This Agreement shall be automatically terminated upon the death or disability of the Consultant. The Company shall pay to Consultant’s estate, or to the Consultant
as appropriate, the balance of the Consulting Fee owed through the fiscal year end of the year of Consultant’s death or disability. 

  

	4.	Independent Contractor. The parties intend that Consultant shall perform services pursuant to this Agreement as an independent contractor as defined by
applicable law. Consultant shall be responsible for payment of all taxes arising out of Consultant’s activities under this Agreement. 

  

	5.	Confidentiality. Consultant acknowledges that during the engagement of his services by the Company, Consultant will have access to and become acquainted with
various trade secrets, strategies, information, and records of the Company and/or used by the Company in connection with the operation of its business, and Consultant agrees to keep confidential all such information and any other non-public
information from, or relating to, the Company. All files, records, documents, and information and similar items relating to the business of the Company, whether prepared by Consultant or otherwise coming into his possession, shall remain the
exclusive property of the Company. The provisions of this paragraph shall survive the termination of this Agreement. 

  

	6.	Right to Injunction. The parties hereto acknowledge that the services to be rendered by Consultant under this Agreement and the rights and privileges granted to
the Company under the Agreement are of a special, unique, and extraordinary character which gives them a peculiar value, the loss of which cannot be reasonably or adequately compensated by damages in any action at law, and the breach by the
Consultant of any of the provisions of this Agreement will cause the Company irreparable injury and damage. Consultant expressly agrees that the Company shall be entitled to seek injunctive in the event of, or to prevent, a breach of any provision
of this Agreement by Consultant. Rights and remedies of the Company under this Agreement are cumulative and resort to injunctive relief, however, shall not be construed to be a waiver of any other rights or remedies that the Company may have for
damages or otherwise. 

  

	7.	Successors and Assigns. All of the provisions of this Agreement shall be binding upon the parties hereto and their respective heirs, if any, successors, and
assigns. 

  
 2 

  

	8.	Waiver. Waiver by one party or breach of any provision of this Agreement by the other shall not operate as a continuing waiver. 

 

	9.	Assignment. Consultant shall not assign any of Consultant’s rights under this Agreement, or delegate the performance of any of Consultant’s duties
hereunder, without the prior written consent of the Company. Nor, shall anyone other than Forward provide the Services under this Agreement on behalf of Consultant. 

 

	10.	Notices. Any and all notices to be given hereunder shall be in writing and shall be given to another party if personally served, or if sent by Federal Express or
a similar national overnight carrier (“Federal Express”). If such notice is served personally, notice shall be deemed constructively made at the time of such personal service. If such notice, is given by Federal Express, such notice shall
be conclusively deemed given one day after delivery to Federal Express addressed to the party to whom such notice is to be given as follows: 

  

			
	If to Consultant:	  	Frank D. Forward
		  	25 Cider Hill Lane
		  	Sherborn, MA 01770
		
	If to the Company:	  	President and Chief Executive Officer
		  	BJ’s Wholesale Club, Inc
		  	25 Research Drive
		  	Westborough, MA 01581

 Any party hereto
may change its address for purposes of this section by written notice given in the manner provided above. 
  

	11.	Entire Understanding. This Agreement constitutes the sole agreement between the parties hereto. It supersedes all prior communications, representations or
agreements between the parties. 

  

	12.	Jurisdiction. This Agreement shall be construed in accordance with and governed by the laws of the Commonwealth of Massachusetts, notwithstanding conflict of law
principals. 

  

	13.	Modification or Amendment. No amendment, change or modification of this Agreement shall be valid unless in writing signed by the parties hereto.

  

	14.	Unenforceability of Provisions. If any provision of this Agreement, or any portion thereof, is held to be invalid and unenforceable, then the remainder of this
Agreement shall nevertheless remain in full force and effect. 

  
 3 

 IN WITNESS WHEREOF the undersigned are duly authorized to execute and do execute this
Agreement on behalf of Consultant and the Company as of the day and year first written above. 
  

					
	BJ’S WHOLESALE CLUB, INC.	 		 	
			
	 /s/ Laura J. Sen
	 		 	 /s/ Frank D. Forward

	Laura J. Sen	 		 	Frank D. Forward
	President and Chief Executive Officer	 		 	
			
	       1/5/2011
	 		 	 January 5, 2011

	Date	 		 	Date

  
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