Document:

exv10w1

 

Exhibit 10.1

THE TJX COMPANIES, INC.

MANAGEMENT INCENTIVE PLAN

(as amended through April 5, 2007)

 

 

THE TJX COMPANIES, INC. 

MANAGEMENT INCENTIVE PLAN

Table of Contents

	 	 	 	 	 	 	 
	1.
	 	Purpose	 	 	1	 
	 
	 	 	 	 	 	 
	2.
	 	Definitions	 	 	1	 
	 
	 	 	 	 	 	 
	3.
	 	Effective Date	 	 	2	 
	 
	 	 	 	 	 	 
	4.
	 	Administration	 	 	2	 
	 
	 	 	 	 	 	 
	5.
	 	Eligibility	 	 	2	 
	 
	 	 	 	 	 	 
	6.
	 	Description of Awards	 	 	2	 
	 
	 	 	 	 	 	 
	7.
	 	Determination of Awards	 	 	3	 
	 
	 	 	 	 	 	 
	8.
	 	Payment of Awards	 	 	5	 
	 
	 	 	 	 	 	 
	9.
	 	Deferral of Award	 	 	5	 
	 
	 	 	 	 	 	 
	10.
	 	Designation of Beneficiary	 	 	5	 
	 
	 	 	 	 	 	 
	11.
	 	Notices	 	 	6	 
	 
	 	 	 	 	 	 
	12.
	 	Rights of Participants	 	 	6	 
	 
	 	 	 	 	 	 
	13.
	 	No Employment Rights	 	 	6	 
	 
	 	 	 	 	 	 
	14.
	 	Certain Payments Upon a Change of Control	 	 	6	 
	 
	 	 	 	 	 	 
	15.
	 	Nonalienation of Award	 	 	6	 
	 
	 	 	 	 	 	 
	16.
	 	Withholding Taxes	 	 	7	 
	 
	 	 	 	 	 	 
	17.
	 	Termination, Amendment and Modification	 	 	7	 
	 
	 	 	 	 	 	 
	18.
	 	Headings and Captions	 	 	7	 
	 
	 	 	 	 	 	 
	19.
	 	Controlling Law	 	 	7	 
	 
	 	 	 	 	 	 
	20.
	 	Miscellaneous Provisions	 	 	7	 
	 
	 	 	 	 	 	 
	21.
	 	Awards to Certain Officers	 	 	8	 

 

 

THE TJX COMPANIES, INC.

MANAGEMENT INCENTIVE PLAN

	1.	 	Purpose
	 
	 	 	The purpose of The TJX Companies, Inc. (“TJX”) Management Incentive Plan (the “Plan”) is to
provide officers and other employees who are key to the annual growth and profitability of
TJX with reward opportunities commensurate with their performance relative to annual
objectives.
	 
	2.	 	Definitions
	 
	 	 	Unless the context requires otherwise, the following expressions as used in the Plan shall
have the meanings ascribed to each below, it being understood that masculine, feminine, and
neuter pronouns are used interchangeably, and that each comprehends the others.

	 	(a)	 	“Change of Control” shall have the meaning set forth in the Company’s 1986
Stock Incentive Plan, as in effect from time to time.
	 
	 	(b)	 	“Company” shall mean TJX and its subsidiaries.
	 
	 	(c)	 	“E.C.C.” shall mean the Executive Compensation Committee of the Board of
Directors of TJX. A member of the E.C.C. shall not be eligible to participate in the
Plan while serving as a member of the E.C.C. or one year prior to becoming a member of
the E.C.C.
	 
	 	(d)	 	“Fiscal Year” shall mean the fifty-two or fifty-three week period ending on the
last Saturday in January, and commencing on the Sunday following the last Saturday in
January of the preceding calendar year.
	 
	 	(e)	 	“Participant” shall mean any officer or other employee of TJX or any subsidiary
of TJX who is designated a Participant pursuant to Section 5 below.
	 
	 	(f)	 	“Performance Criteria” shall mean the standards of measurement of performance
by the Company, performance by any division or subsidiary of the Company, and/or
individual performance for each Performance Period as established by the E.C.C.
pursuant to paragraph (a) of Section 6 below.

1

 

	 	(g)	 	“Performance Goal” shall mean the level of performance with respect to each
Performance Criterion at which awards are payable pursuant to this Plan. Performance
Goals are established by the E.C.C. pursuant to paragraph (b) of Section 6 below.
	 
	 	(h)	 	“Performance Period” shall mean one Fiscal Year.
	 
	 	(i)	 	“Section 162(m)” shall mean Section 162(m) of the Internal Revenue Code of
1986, as amended, and the regulations thereunder.

	3.	 	Effective Date
	 
	 	 	The effective date of the Plan shall be January 28, 1979. The effective date of this
amendment and restatement of the Plan shall be April 5, 2007.
	 
	4.	 	Administration
	 
	 	 	This Plan shall be administered by the E.C.C. The E.C.C. shall have full authority to
interpret the Plan; to establish, amend, and rescind rules for carrying out the Plan; to
administer the Plan; to determine the terms and provisions of any agreements pertaining to
the Plan; and to make all other determinations necessary or advisable for its
administration. The E.C.C. shall not be bound to any standards of uniformity or similarity
of action, interpretation, or conduct in the discharge of its duties hereunder, regardless
of the apparent similarity of the matters coming before it. Its determination shall be
binding on all parties.
	 
	 	 	No member or former member of the E.C.C. or the Board of Directors of TJX shall be liable
for any action or determination made in good faith with respect to the Plan or any award or
payment made under the Plan.
	 
	5.	 	Eligibility
	 
	 	 	For each Performance Period, the E.C.C. shall designate those Participants who may be
entitled to receive annual management incentive awards, subject to the terms and conditions
of the Plan.
	 
	6.	 	Description of Awards

2

 

	(a)	 	Designation of Performance Criteria
	 
	 	 	At the commencement of each Performance Period, the E.C.C. shall determine the
Performance Criteria for said Performance Period and the relative weight to be given
to each Performance Criterion. Performance Criteria and the weighing thereof may
vary by Participant and may be different for different Performance Periods. Such
Performance Criteria may include, but shall not be limited to, measures such as
pre-tax income, pre-tax income as a percentage of sales, return on investment, or
other measures specific to a Participant’s annual performance objectives. These
criteria may be based on Company, divisional, subsidiary and/or individual
performance as designated by the E.C.C.
	 
	(b)	 	Performance Goals
	 
	 	 	At the commencement of each Performance Period, the E.C.C. shall determine a range
of Performance Goals from minimum to target to maximum for each Performance
Criterion for said Performance Period, based upon the Company, divisional or
subsidiary Business Plan for said Fiscal Year. Performance Goals are subject to the
approval of the President of TJX. Performance Goals may vary by Participant and may
be different for different Performance Periods.
	 
	 	 	At any time designated by the E.C.C. during a Performance Period or thereafter, but
prior to award payment, appropriate adjustments in the Performance Goals may be made
to avoid undue windfalls or hardships due to external conditions outside the control
of management, changes in method of accounting, nonrecurring or abnormal items, or
other matters as the E.C.C. shall, in its sole discretion, determine.
	 
	(c)	 	Award Opportunity
	 
	 	 	At the commencement of each Performance Period, the E.C.C. shall assign to each
Participant the minimum, target and maximum opportunity to be earned for said
Performance Period, based upon the Participant’s position and ability to affect
annual performance relative to goals during the Performance Period. Award
opportunity may be expressed as a fixed amount or as a percentage of the
Participant’s actual base salary earned for the Performance Period.
	 
	 	 	From time to time, discretionary awards, in addition to the annual management
incentive awards, may be made by the E.C.C. to any Participant in recognition of
outstanding performance or extraordinary circumstances which occur during the
Performance Period. Recommendations of Participants to receive discretionary awards
shall be made by the President of TJX.

3

 

	7.	 	Determination of Awards

	 	(a)	 	Upon completion of each Performance Period and certification of the Company’s
financial statements by the Company’s independent public accountants for the Fiscal
Year included in such Performance Period, the E.C.C. shall review performance relative
to Performance Goals, as adjusted from time to time in accordance with paragraph (b) of
Section 6 above, and determine the value of the awards for each Performance Period,
subject to the approval of the President of TJX and/or the Chairman of the E.C.C.
	 
	 	 	 	Achievement of Performance Goals shall result in payment of the target award.
Failure to achieve Performance Goals will result in a decrease or elimination of the
Participant’s award. Exceeding Performance Goals will result in an increased award.
	 
	 	 	 	Performance Goal awards may be adjusted upward or downward by the E.C.C. due to
special circumstances or individual performance review. Without limiting the
generality of the foregoing, the E.C.C. may reduce or eliminate awards to
Participants receiving “Needs Improvement” performance ratings.
	 
	 	(b)	 	If an employee becomes a Participant after the beginning of a Performance
Period, the award payable to him or her shall be prorated in accordance with the
portion of the Performance Period in which he or she is a Participant.
	 
	 	(c)	 	In the event of termination of employment of a Participant for any reason prior
to the last day of the Performance Period, a Participant thereafter shall have no
further rights under the Plan and shall not be entitled to payment of any award.
	 
	 	 	 	If termination of employment occurs (i) by reason of death, (ii) by reason of normal
retirement under a retirement plan of the Company, or (iii) with the consent of the
Company, the E.C.C. may, in its sole discretion, value and direct that all or some
portion of the award be deemed earned and payable, taking into account the duration
of employment during the Performance Period, the Participant’s performance, and
other matters as the E.C.C. shall deem appropriate. In the event of termination of
employment for cause, as defined and determined by the E.C.C. in its sole
discretion, no payment shall be made with regard to any prior or current Performance
Period.
	 
	 	(d)	 	If a Participant shall be actively employed by the Company less than a full
Performance Period because of an accident or illness but completes 26 weeks of active
employment during said Performance Period, the award otherwise payable to said
Participant for said Performance Period shall not be reduced because of a failure of
active employment due to such accident or illness.

4

 

	 	 	 	If a Participant shall be actively employed by the Company less than a full
Performance Period because of an accident or illness and does not complete 26 weeks
of active employment during said Performance period, said Participant shall receive
such award, if any, for said Performance Period as the E.C.C. shall determine.
	 
	 	 	 	Any time for which a Participant receives sick leave and/or vacation payments shall
be deemed active employment time. Any time for which a Participant received
short-term income protection, short-term disability and/or long-term disability
payments shall not be deemed active employment time.
	 
	 	 	 	The provisions in this Section 7 are subject to the terms of any employment
agreement, severance agreement or severance plan applicable to any one or more
participants and in the event of any conflict, such terms shall control payment.

	8.	 	Payment of Awards
	 
	 	 	As soon as practicable after valuation of the award for each Performance Period, payment
shall be made in cash with respect to the award earned by each Participant.
	 
	9.	 	Deferral of Award
	 
	 	 	Participants who are designated by the E.C.C. as being eligible to participate in the TJX
General Deferred Compensation Plan may elect to defer all or a portion of their awards in
accordance with the terms of such General Deferred Compensation Plan.
	 
	10.	 	Designation of Beneficiary

	 	(a)	 	Subject to applicable law, each Participant shall have the right to file with
the E.C.C., to the attention of the Vice President, Human Services Director of TJX, a
written designation of one or more persons as the beneficiary(ies) who shall be
entitled to receive the amount, if any, payable under the Plan upon his or her death. A
Participant may from time to time revoke or change his or her beneficiary by filing a
new designation with the E.C.C. The last such designation received by the E.C.C. shall
be controlling, provided, however, that not designation change or revocation thereof
shall be effective unless received by the E.C.C. prior to the Participant’s death and
in no event shall it be effective as of date prior to receipt.

5

 

	 	(b)	 	If no such beneficiary designation is in effect at the time of a Participant’s
death, or if no designated beneficiary survives the Participant, or if such designation
conflicts with law, the payment of the amount, if any, payable under the Plan upon his
or her death shall be made to the Participant’s estate. If the E.C.C. is in doubt as to
the right of any person to receive any amount, the E.C.C. may retain such amount,
without liability for any interest thereon, until the rights thereto are determined, or
the E.C.C. may pay such amount into any court of appropriate jurisdiction, and such
payment shall be a complete discharge of the liability of the Plan, the Company, and
the E.C.C. therefor.

	11.	 	Notices
	 
	 	 	Each Participant whose employment relationship with the Company has terminated, either
voluntarily or involuntarily, shall be responsible for furnishing the Vice President, Human
Services Director of TJX, with the current and proper address for the mailing of notices and
the delivery of agreements and payments. Any notice required or permitted to be given shall
be deemed given if directed to the person to whom addressed at such address and mailed by
regular United States mail, first-class and prepaid. If any item mailed to such address is
returned as undeliverable to the addressee, mailing shall be suspended until the Participant
furnishes the proper address.
	 
	12.	 	Rights of Participants
	 
	 	 	Nothing contained in the Plan and no action taken pursuant to the Plan shall create or be
construed to create a trust of any kind, or a fiduciary relationship between the Company and
any Participant or his or her legal representative or designated beneficiary, or other
persons.
	 
	 	 	If and to the extent that any Participant or his or her legal representative or designated
beneficiary, as the case may be, acquires a right to receive any payment from the Company
pursuant to the Plan, such right shall be no greater than the right of an unsecured general
creditor of the Company.
	 
	13.	 	No Employment Rights
	 
	 	 	Nothing in this Plan or any other document describing or referring to this
Plan shall be deemed to confer on any Participant the right to continue in
the employ of the Company or his or her respective employer or affect the
right of such employer to terminate the employment of any such person with
or without cause.

6

 

	14.	 	Certain Payments Upon a Change of Control
	 
	 	 	If, upon a Change of Control of TJX, amounts payable or that would or might be payable in
respect of an individual under the Plan instead are paid to such individual or his or her
estate or beneficiary pursuant to any change of control severance plan or agreement, or any
similar plan, agreement or arrangement, to which the Company is a party, payments in respect
of such individual hereunder shall be reduced pro tanto.
	 
	15.	 	Nonalienation of Award
	 
	 	 	No amounts or other rights under the Plan shall be sold, transferred, assigned, pledged, or
otherwise disposed of or encumbered by a Participant, except as provided herein, and shall
not be subject to attachment, garnishment, execution, or other creditor’s processes.
	 
	16.	 	Withholding Taxes
	 
	 	 	The Company shall have the right to deduct withholding taxes from any payments made pursuant
to the Plan, or make such other provisions as it deems necessary or appropriate to satisfy
its obligations to withhold federal, state, or local income or other taxes incurred by
reason of payments pursuant to the Plan.
	 
	17.	 	Termination, Amendment and Modification
	 
	 	 	The E.C.C. or the Board of Directors of TJX may from time to time amend, modify, or
discontinue the Plan or any provision hereof. No amendment to or discontinuance or
termination of the Plan, shall, without the written consent of the Participant, adversely
affect any rights of such Participant that have vested. This Plan shall continue until
terminated by the E.C.C. or the Board of Directors of TJX.
	 
	18.	 	Headings and Captions
	 
	 	 	The headings and captions herein are provided for reference and convenience only, shall not
be considered part of the Plan, and shall not be employed in the construction of the Plan.
	 
	19.	 	Controlling Law
	 
	 	 	This Plan shall be construed and enforced according to the laws of the Commonwealth of
Massachusetts, to the extent not preempted by Federal law, which shall otherwise control.

7

 

	20.	 	Miscellaneous Provisions

	 	(a)	 	All costs and expenses involved in administering the Plan as provided herein,
or incident thereto, shall be borne by the Company.
	 
	 	(b)	 	The E.C.C. may, in its sole discretion, reduce or eliminate awards granted or
money payable to any Participant or all Participants if it determines that such awards
or payment may cause the Company to violate any applicable law, regulation, controls,
or guidelines. Such reduction or elimination may be made notwithstanding that the
possible violation might be eliminated by reducing or not increasing compensation or
benefits of other associates, it being the intent of the Plan not to inhibit the
discretion of the Company to provide such forms and amounts of compensation and
benefits to employees as it deems advisable.

	21.	 	Awards to Certain Officers
	 
	 	 	The provisions of this Section 21 shall apply, notwithstanding any other provision of the
Plan to the contrary, in the case of any award made to a person expected to be described in
Section 162(m) at the time the award is to be paid, as determined by the E.C.C. at the time
of the award. In the case of any such award: (a) Performance Criteria shall be based on
any one or more of the following (on a consolidated, divisional, line of business,
geographical or area of executive’s responsibilities basis): one or more items of or within
(i) sales, revenues, assets or expenses; (ii) earnings, income or margins, before or after
deduction for all or any portion of interest, taxes, depreciation, amortization, or such
other items as the E.C.C. may determine at the time the Performance Criteria are
preestablished (within the meaning of Section 162(m)), whether or not on a continuing
operations and aggregate or per share basis; (iii) return on investment, capital, assets,
sales or revenues; and (iv) stock price; (b) unless otherwise determined by the E.C.C. in a
manner that is consistent with the requirement that the Performance Goals be preestablished
within the meaning of, and that the Award otherwise comply with the performance-based
compensation exemption under, Section 162(m), the specific Performance Goals established by
the E.C.C. with respect to any Award shall be subject to mandatory adjustment where such
Performance Goal is affected by any of the following objectively determinable factors
occurring after the Performance Goal has been established by the E.C.C., such that
performance with respect to such Performance Goal for such Award shall be determined without
regard to such factor: (i) any change in, or elimination or addition of, an accounting
standard or principle, or any change in the interpretation thereof, whether identified as a
change, error, correction or otherwise denominated, by the FASB, the SEC or its staff, the
PCAOB, or other competent accounting or regulatory body, as determined by the E.C.C., (ii)
any change in laws, rules, regulations or other interpretations or guidance issued by a
competent regulatory

8

 

	 	 	body if the effect of such change would be to affect the financial measure by more than 1%
(as determined by the E.C.C. based on advice from its outside auditors), (iii) any
acquisition or disposition by the Company of a business or portion thereof, however
structured, if the effect of such acquisition or disposition would be to affect the
financial measure by more than 1% (as determined by the E.C.C. based on advice from the
Company’s outside auditor), and (iv) any other objectively determinable factor that is
specified by the E.C.C. within 90 days of the commencement of the applicable performance
period (or within the first one-quarter of the applicable performance period, if shorter);
(c) the maximum amount payable under any Plan award to any such individual shall be
$5,000,000; (d) no payment shall be made under the award unless the applicable Performance
Goals, which shall have been preestablished within the meaning of Section 162(m), have been
met, nor shall any such payment be made until the E.C.C. certifies in accordance with
Section 162(m) that such Goals have been met; and (e) those provisions of the Plan generally
applicable to awards hereunder which give to the E.C.C. or any other person discretion to
modify the award after the establishment and grant of the award, or which if applied to an
award described in this Section 21 might otherwise cause such award to fail to qualify as a
performance-based award under Section 162(m) shall be deemed inapplicable to the extent (but
only to the extent) the retention of such discretion by such person or the application of
such provision would be deemed inconsistent with qualification of the award as
performance-based under Section 162(m).

9exv10w2

 

Exhibit 10.2

THE TJX COMPANIES, INC.

LONG RANGE PERFORMANCE INCENTIVE PLAN

(as amended through April 5, 2007)

 

 

THE TJX COMPANIES, INC. 

LONG RANGE PERFORMANCE INCENTIVE PLAN

Table of Contents

	 	 	 	 	 	 	 
	1.
	 	Purpose	 	 	1	 
	 
	 	 	 	 	 	 
	2.
	 	Definitions	 	 	1	 
	 
	 	 	 	 	 	 
	3.
	 	Term	 	 	1	 
	 
	 	 	 	 	 	 
	4.
	 	Plan Administration	 	 	1	 
	 
	 	 	 	 	 	 
	5.
	 	Eligibility and Target Award	 	 	1	 
	 
	 	 	 	 	 	 
	6.
	 	Award Goals	 	 	2	 
	 
	 	 	 	 	 	 
	7.
	 	Determination of Awards	 	 	3	 
	 
	 	 	 	 	 	 
	8.
	 	Termination	 	 	4	 
	 
	 	 	 	 	 	 
	9.
	 	Transferability	 	 	4	 
	 
	 	 	 	 	 	 
	10.
	 	Designation of Beneficiary	 	 	4	 
	 
	 	 	 	 	 	 
	11.
	 	Change of Control; Mergers, etc.	 	 	5	 
	 
	 	 	 	 	 	 
	12.
	 	Amendment and Modification	 	 	5	 
	 
	 	 	 	 	 	 
	13.
	 	Withholding Taxes	 	 	5	 
	 
	 	 	 	 	 	 
	14.
	 	Future Rights	 	 	6	 
	 
	 	 	 	 	 	 
	15.
	 	Controlling Law	 	 	6	 
	 
	 	 	 	 	 	 
	16.
	 	Awards to Certain Officers	 	 	6	 

 

 

THE TJX COMPANIES, INC.

LONG RANGE PERFORMANCE INCENTIVE PLAN

	1.	 	Purpose
	 
	 	 	The purpose of The TJX Companies, Inc. Long Range Performance Incentive Plan (the “Plan”) is
to promote the long-term success of The TJX Companies, Inc. (the “Company”) and its
shareholders by providing competitive incentive compensation to those officers and selected
employees upon whose judgment, initiative, and efforts the Company depends for its
profitable
growth.
	 
	2.	 	Definitions
	 
	 	 	Reference is hereby made to the Company’s 1986 Stock Incentive Plan (the “1986 Plan”). Terms
defined in the 1986 Plan and not otherwise defined herein are used herein with the meanings
so defined.
	 
	3.	 	Term
	 
	 	 	The plan shall be effective as of January 25, 1992 (the start of fiscal year 1993), and the
Plan shall remain in effect until terminated by the Company’s Board of Directors (the
“Board”).
	 
	4.	 	Plan Administration
	 
	 	 	The Plan shall be administered by the same Committee that administers the 1986 Plan. The
Committee shall have full and exclusive power to interpret the Plan and to adopt such rules,
regulations and guidelines for carrying out the Plan as it may deem necessary or proper,
consistent with the 1986 Plan.
	 
	5.	 	Eligibility and Target Award
	 
	 	 	Any key employee (an “Employee”) of the Company or any of its Subsidiaries who could receive
an award under the 1986 Plan shall be eligible to receive awards under the Plan.
	 
	 	 	At the commencement of each performance cycle (the “Performance Cycle”), which shall be a
two-year or a three-year cycle as specified by the Committee at the commencement of such
Performance Cycle, the Committee shall designate those who will participate in the Plan (the
“Participants”) and their target awards (the “Awards”).

 

 

	 	 	Subsequent to the commencement of a Performance Cycle, the Committee may, in special
circumstances, designate additional Participants and their target Awards for such
Performance Cycle.
	 
	6.	 	Award Goals
	 
	 	 	At the commencement of each Performance Cycle, the Committee shall set one or more
performance goals (the “Performance Goals”) for such Performance Cycle, the relative weight
to be given to each Performance Goal, and a schedule for determining payments if actual
performance is above or below the goal. For the Performance Cycles for fiscal years
1995–1997 and thereafter, Awards shall not provide for any minimum payment; however, the
Committee for each such Cycle shall establish a maximum (not to exceed 150%) of the Award
which may be earned.
	 
	 	 	At any time designated by the Committee during a Performance Cycle or thereafter, but prior
to Award payment, appropriate adjustments in the goals may be made by the Committee to avoid
undue windfalls or hardships due to external conditions outside the control of management,
nonrecurring or abnormal items, or other matters as the Committee shall, in its sole
discretion, determine appropriate to avoid undue windfalls or hardships.
	 
	 	 	As soon as practicable after the end of the Performance Cycle, the Committee shall determine
what portion of each Award has been earned. The Award payment shall be paid in cash.
	 
	7.	 	Determination of Awards

	 	(a)	 	Upon completion of each Performance Cycle and certification of the Company’s
financial statements by the Company’s independent public accountants for the Fiscal
Years included in such Performance Cycle, the Committee shall review performance
relative to Performance Goals, and determine the value of the Awards for each
Performance Cycle, subject to the approval of the President of TJX and/or the Chairman
of the Committee.
	 
	 	 	 	Achievement of Performance Goals shall result in payment of the target Award.
Failure to achieve Performance Goals will result in a decrease or elimination of the
Participant’s Award. Exceeding Performance Goals will result in an increased Award.
	 
	 	 	 	Performance Goal Awards may be adjusted upward or downward by the Committee due to
special circumstances or individual performance review. Without limiting the
generality of the foregoing, the Committee may reduce or eliminate Awards to
Participants receiving “Needs Improvement” performance ratings.

 

 

	 	(b)	 	If an employee becomes a Participant after the beginning of a Performance
Cycle, the Award payable to him or her shall be prorated in accordance with the portion
of the Performance Cycle in which he or she is a Participant.
	 
	 	(c)	 	In the event of termination of employment of a Participant for any reason prior
to the last day of the Performance Cycle, a Participant thereafter shall have no
further rights under the Plan and shall not be entitled to payment of any Award.
	 
	 	 	 	If termination of employment occurs (i) by reason of death, (ii) by reason of normal
retirement under a retirement plan of the Company, or (iii) with the consent of the
Company, the Committee may, in its sole discretion, value and direct that all or
some portion of the Award be deemed earned and payable, taking into account the
duration of employment during the Performance Cycle, the Participant’s performance,
and other matters as the Committee shall deem appropriate. In the event of
termination of employment for cause, as defined and determined by the Committee in
its sole discretion, no payment shall be made with regard to any prior or current
Performance Cycle.
	 
	 	(d)	 	If a Participant shall be actively employed by the Company less than a full
Performance Cycle because of an accident or illness but completes 26 weeks of active
employment during said Performance Cycle, the Award otherwise payable to said
Participant for said Performance Cycle shall not be reduced because of a failure of
active employment due to such accident or illness.
	 
	 	 	 	If a Participant shall be actively employed by the Company less than a full
Performance Cycle because of an accident or illness and does not complete 26 weeks
of active employment during said Performance Cycle, said Participant shall receive
such Award, if any, for said Performance Cycle as the Committee shall determine.
	 
	 	 	 	Any time for which a Participant receives sick leave and/or vacation payments shall
be deemed active employment time. Any time for which a Participant received
short-term income protection, short-term disability and/or long-term disability
payments shall not be deemed active employment time.
	 
	 	 	 	The provisions in this Section 7 are subject to the terms of any
employment agreement, severance agreement or severance plan applicable
to any one or more participants and in the event of any conflict, such
terms shall control payment.

 

 

	8.	 	Termination
	 
	 	 	Awards are forfeited at termination of employment. However, if termination of employment
occurs by reason of (i) death, (ii) disability (as determined under the 1986
	 
	 	 	Plan), (iii) normal retirement under a retirement plan of the Company, or (iv) with the
consent of the Company, the Committee may, in its sole discretion, direct that all or a
portion of a Participant’s Award be paid, taking into account the duration of employment
during the Performance Cycle, the Participant’s performance, and such other matters as the
Committee shall deem appropriate. This Section 8 shall not apply to the extent the rights of
a Participant in such circumstances are governed by another agreement.
	 
	9.	 	Transferability
	 
	 	 	Awards under the Plan will be nontransferable and shall not be assignable, alienable,
saleable or otherwise transferable by the Participant other than by will or the laws of
descent and distribution.
	 
	10.	 	Designation of Beneficiary

	 	(a)	 	Subject to applicable law, each Participant shall have the right to file with
the Committee, to the attention of the Vice President, Human Services Director of TJX,
a written designation of one or more persons as the beneficiary(ies) who shall be
entitled to receive the amount, if any, payable under the Plan upon his or her death. A
Participant may from time to time revoke or change his or her beneficiary by filing a
new designation with the Committee The last such designation received by the Committee
shall be controlling, provided, however, that not designation change or revocation
thereof shall be effective unless received by the Committee prior to the Participant’s
death and in no event shall it be effective as of date prior to receipt.
	 
	 	(b)	 	If no such beneficiary designation is in effect at the time of a Participant’s
death, or if no designated beneficiary survives the Participant, or if such designation
conflicts with law, the payment of the amount, if any, payable under the Plan upon his
or her death shall be made to the Participant’s estate. If the Committee is in doubt as
to the right of any person to receive any amount, the Committee may retain such amount,
without liability for any interest thereon, until the rights thereto are determined, or
the Committee may pay such amount into any court of appropriate jurisdiction, and such
payment shall be a complete discharge of the liability of the Plan, the Company, and
the Committee therefor.

	11.	 	Change of Control; Mergers, etc.

	 	(a)	 	In the event the Company undergoes a Change of Control as defined in the 1986
Plan, this Plan shall automatically terminate and within 30 days following such

 

 

	 	 	 	Change
of Control, whether or not a Participant’s employment has been terminated, the Company
shall pay to the Participant the following in a lump sum in full payment of his or her
Award:
An amount with respect to each Performance Cycle for which the Participant has been
designated as a Plan Participant equal to 50 percent of the product of (i) the
maximum Award for the Participant for such Performance Cycle and (ii) a fraction,
the denominator of which is the total number of fiscal years in the Performance
Cycle and the numerator of which is the number of fiscal years which have elapsed in
such Performance Cycle prior to the Change of Control (for purposes of this
fraction, if the Change of Control occurs during the first quarter of a fiscal year,
then one quarter of the fiscal year shall be deemed to have lapsed prior to the
Change of Control, and if the Change of Control occurs after the first quarter of
the fiscal year, then the full fiscal year shall be deemed to have elapsed prior to
the Change of Control). For purposes of this paragraph (a), the Valuation Date shall
be the day preceding the date of the Change of Control. This paragraph (a) shall not
apply to any Participant whose rights under this Plan upon a Change of Control are
governed by another agreement or plan.
	 
	 	(b)	 	In the event of a merger or consolidation with another company or in the event
of a liquidation or reorganization of the Company, other than any merger,
consolidation, reorganization or other event that constitutes a Change of Control, the
Committee may in its sole discretion determine whether to provide for adjustments and
settlements of Awards. The Committee may make such determination at the time of the
Award or at a subsequent date.

	12.	 	Amendment and Modification
	 
	 	 	The Board may from time to time amend, modify, or discontinue the Plan or any provision
hereof. No such amendment to, or discontinuance, or termination of the Plan shall, without
the written consent of a Participant, adversely affect any rights of such Participant under
an outstanding Award.
	 
	13.	 	Withholding Taxes
	 
	 	 	The Company shall have the right to deduct withholding taxes from any payments made pursuant
to the Plan, or make such other provisions as it deems necessary or appropriate to satisfy
its obligations for withholding federal, state, or local income or other taxes incurred by
reason of payments pursuant to the Plan.
	 
	 	 	Participants may elect in a writing furnished to the Committee prior to the Valuation Date
to satisfy their federal tax obligations with respect to any shares paid hereunder by
directing the Company to withhold an equivalent value of shares.

 

 

	14.	 	Future Rights
	 
	 	 	No person shall have any claim or rights to be granted an Award under the Plan, and no
Participant shall have any rights under the Plan to be retained in the employ of the
Company.
	 
	15.	 	Controlling Law
	 
	 	 	This Plan shall be construed and enforced according to the laws of the Commonwealth of
Massachusetts, to the extent not preempted by Federal law, which shall otherwise control.
	 
	16.	 	Awards to Certain Officers
	 
	 	 	The provisions of this Section 16 shall apply, notwithstanding any other provision of the
Plan to the contrary, in the case of any Award made to a person expected to be described in
Section 162(m) of the Internal Revenue Code (“Section 162(m)”) at the time the Award is to
be paid, as determined by the Committee at the time of the Award. In the case of any such
Award: (a) Performance Goals shall be based on any one or more of the following (on a
consolidated, divisional, line of business, geographical or area of executive’s
responsibilities basis): one or more items of or within (i) sales, revenues, assets or
expenses; (ii) earnings, income or margins, before or after deduction for all or any portion
of interest, taxes, depreciation, amortization, or such other items as the Committee may
determine at the time the Performance Goals are preestablished (within the meaning of
Section 162(m)), whether or not on a continuing operations and aggregate or per share basis;
(iii) return on investment, capital, assets, sales or revenues; and (iv) stock price; (b)
unless otherwise determined by the Committee in a manner that is consistent with the
requirement that the Performance Goals be preestablished within the meaning of, and that the
Award otherwise comply with the performance-based compensation exemption under, Section
162(m), the specific Performance Goals established by the Committee with respect to any
Award shall be subject to mandatory adjustment where such Performance Goal is affected by
any of the following objectively determinable factors occurring after the Performance Goal
has been established by the Committee, such that performance with respect to such
Performance Goal for such Award shall be determined without regard to such factor: (i) any
change in, or elimination or addition of, an accounting standard or principle, or any change
in the interpretation thereof, whether identified as a change, error, correction or
otherwise denominated, by the FASB, the SEC or its staff, the PCAOB, or other competent
accounting or regulatory body, as determined by the Committee, (ii) any change in laws,
rules, regulations or other interpretations or guidance issued by a competent regulatory
body if the effect of such change would be to affect the financial measure by more than 1%
(as determined by the Committee based on advice from its outside auditors), (iii) any
acquisition or disposition by the Company of a business or portion thereof, however
structured, if the effect of such acquisition or disposition would be to affect the
financial measure by more than 1% (as determined by the Committee based on advice from the

 

 

	 	 	Company’s outside auditor), and (iv) any other objectively determinable factor that is
specified by the Committee within 90 days of the commencement of the applicable performance
period (or within the first one-quarter of the applicable performance period, if shorter);
(c) the maximum amount payable under any Plan Award to any such individual shall be
$5,000,000; (d) no payment shall be made under the Award unless the applicable Performance
Goals, which shall have been preestablished within the meaning
of Section 162(m), have been met, nor shall any such payment be made until the Committee
certifies in accordance with Section 162(m) that such Goals have been met; and (e) those
provisions of the Plan generally applicable to Awards hereunder which give to the Committee
or any other person discretion to modify the Award after the establishment and grant of the
Award, or which if applied to an Award described in this Section 16 might otherwise cause
such Award to fail to qualify as a performance-based award under Section 162(m), shall be
deemed inapplicable to the extent (but only to the extent) the retention of such discretion
by such person or the application of such provision would be deemed inconsistent with
qualification of the Award as performance-based within the meaning of Section 162(m).

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