Document:

Exhibit
10.21

 

AGREEMENT 

 

AGREEMENT (“Agreement”)
dated as of the 27th day of February, 2004, between BED BATH & BEYOND, INC.
(the “Employer”) and LEONARD FEINSTEIN, individually (the “Executive”).

 

W I T N E S S E T H

 

WHEREAS:

 

A.                                   The Employer and the Executive are parties to
an Agreement to Terminate Split-Dollar Agreements, dated November 30,
2003, pursuant to which certain split-dollar life insurance agreements and
related collateral assignments which provided for $30 million of life insurance
coverage were terminated (the “Split-Dollar Arrangements”);

 

B.                                     In connection with such termination the
Executive caused the Company to be paid $2,398,679, being the total amount of
premiums paid by the Employer under the Split-Dollar Arrangements.  In addition, in connection with such
termination, the Company was released from its contractual obligation to make
future premium payments.  The payment
and release constitutes a substantial cost saving to the Employer; and

 

C.                                     The Employer wishes to confer a benefit upon
the Executive in substitution for the benefit previously conferred on the
Executive pursuant to the Split-Dollar Arrangements.

 

NOW,
THEREFORE, in consideration of the mutual promises made by
each party to the other, and of the mutual agreements contained herein, the
parties hereto agree as follows:

 

1.                                       Recitals.  The above recitals are incorporated herein
by reference as though fully set forth at length herein.

 

2.                                       Substitute Benefit Payment .

 

(a)                                  The Employer hereby
irrevocably agrees to pay Two Million Eighty Thousand Dollars ($2,080,000) to
the Executive on the last day of the first full fiscal year of the Employer in
which the total compensation of the Executive will not result in the loss of a
deduction for federal income tax purposes for the Employer pursuant to the
provisions of Section 162(m) of the Internal Revenue Code of 1986, as
amended, or any similar or successor provision (the “Provisions”), provided
that, in the event the Provisions are changed in a manner that would result in
the payments in materially all events being nondeductible then such amount
shall be paid at such time as it would have been paid if such change in law had
not been made.

 

(b)                                 Employer shall be obligated
to make the payment referred to in this Section 2 whether or not the
Executive is then in the employ of the Employer, and if not, regardless of the
reason for termination of the Executive’s employment including, without
limitation, voluntary termination, termination by the Employer for cause, and
death of the Executive.

 

3.                                       Choice of Law.  This Agreement shall be governed by the
internal law of the State of New York, without reference to principles of
conflict of laws, except to the extent preempted by the Employee Retirement
Income Security Act of 1974, as amended.

 

4.                                       Unfunded Arrangement.  The payment to the Executive under this Agreement shall be made
from the general assets of the Employer. 
No person shall have any interest in any such assets by virtue of the
provisions of Section 2.  The
Employer’s obligation under Section 2 shall be an unfunded and unsecured
promise to pay money in the future, and no provision shall at any time be made
with respect to segregating any assets of the Employer for payment of any
benefits due hereunder.  The Executive’s
right to

 

 

receive
the payment from the Employer pursuant to 
Section 2 shall be no greater than the right of any unsecured
general creditor of the Employer, and the Executive shall not have nor acquire
any legal or equitable right, interest or claim in or to any property or assets
of the Employer.  The Executive shall
not have any power or right to transfer, assign or otherwise encumber any part
or all of the amount payable hereunder, and any attempt to do so shall be null
and void.  The amount payable hereunder
shall not be subject to attachment, garnishment, levy, execution or other legal
or equitable process.

 

5.                                       Entire Agreement.  This Agreement sets forth the entire
understanding of the parties with respect to the transaction contemplated
hereby and supersedes all prior agreements, arrangements and understandings
relating to the subject matter hereof. 
This Agreement may be amended only by a written instrument executed by
the parties hereto.

 

6.                                       Miscellaneous.

 

(a)                                  All payments made hereunder shall be subject
to all taxes and withholding required by law.

 

(b)                                 This Agreement shall be binding upon, and
inure to the benefit of, the successors and permitted assigns of the parties
hereto.  This Agreement shall not be
assignable by the Executive, and shall be assignable by the Employer only , to
an acquirer of all or substantially all of the assets of the Employer, provided
such acquirer promptly assumes all of the obligations hereunder in a writing
delivered to the Executive.

 

(c)                                  In the event of the Executive’s death, any
amounts payable hereunder shall be paid to the Executive’s estate.

 

7.                                       Headings.  The headings of the sections are for
convenience only and shall not control or affect the meaning or construction or
limit the scope or intent of any of the provisions of this Agreement.

 

IN WITNESS
WHEREOF, the parties have signed this Agreement as of the day and year first
written above.

 

 

	
  ATTEST:

  	
  EMPLOYER:

  
	
   

  	
   

  
	
   

  	
  BED BATH & BEYOND, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Steven H. Temares

  	
   

  
	
   

  	
   

  	
  Steven H. Temares, President

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  EXECUTIVE:

  
	
   

  	
   

  
	
   

  	
  /s/ Leonard Feinstein

  	
   

  
	
   

  	
  LEONARD FEINSTEIN, IndividuallyExhibit 10.22

 

BED BATH & BEYOND
INC.

650 Liberty Avenue

Union, NJ 07083

 

Mr. Eugene A. Castagna

 

As of March 1, 2000

 

We write to
set forth our agreement with respect to your employment as an executive of Bed
Bath & Beyond Inc. (the “Company”). 
Your current title with the Company is Vice President of Finance.

 

1.                                      Duties.

 

The Company
hereby agrees to employ you, and you agree to be employed by the Company, on
the terms and conditions hereinafter set forth.  You will perform such duties as may from time to time be assigned
to you by either of the current Co-Chief Executive Officers of the Company, or
by the Board of Directors of the Company. 
You agree to serve the Company faithfully, diligently and competently,
and to devote your full working time, energy and skill to the Company’s
business.  Your place of employment will
remain in the greater New York area unless you consent to move.

 

2.                                      Compensation.

 

The Company
will pay you an annual salary at a rate not less than your current salary,
payable in accordance with the Company’s customary payroll practices from time
to time in effect.  The Company will
review your compensation annually and may, in its sole discretion, increase
your annual salary.  At no time will
your annual salary be less than your annual salary in the immediately preceding
year.  You will be entitled to
participate in such privileges and in such insurance and other benefit programs
as are generally made available to the Company’s employees to the extent you
meet the eligibility requirements for such privileges and programs.  You will be entitled to take vacations in
accordance with the Company’s vacation policy for managers from time to time in
effect.

 

3.                                      Severance
Compensation.

 

(a)           Your employment by the Company is not for
any specific term but rather is on an ongoing at-will basis with the right by
the Company and you to terminate your employment at any time.  If the Company terminates your employment
for any reason other than for “cause”, then the Company shall pay you, as
severance pay, provided that you have not breached the provisions of paragraph
4 hereof, your salary at the rate in effect immediately prior to such
termination, for a period of one (1) year, in normal payroll installments in
accordance with the Company’s then payroll practices or, at the Company’s
option, in a lump sum.

 

 

Thus, if you have not violated the non-compete restrictions in
paragraph 4 hereof during a period expiring two years after the termination of
your employment (as well as the other restrictions in that paragraph), the
Company will guarantee that you will receive your salary for a period of one
(1) year.  This one-year severance
obligation shall also apply if you die or become disabled.  Your severance pay under paragraphs 3(a) and
(c) shall be reduced by any compensation earned by you as a result of your
employment by another employer or otherwise. 
The Company shall have “cause” to terminate your employment only if you
have (i) acted in bad faith or with dishonesty, (ii) willfully failed to follow
the directions of the Company’s current Co-Chief Executive Officers or the
Board of Directors, (iii) performed your duties with gross negligence, or (iv)
been convicted of a felony.

 

(b)          In addition, if the Company terminates your
employment for any reason other than for “cause”, and if at the date of such
termination there are options granted to you by the Company under any option
plan which was then not exercisable by reason of the installment terms thereof,
the Company shall take such steps as may be necessary or appropriate to make
such options immediately exercisable for a period of at least thirty (30) days
following the termination of your employment. 
For purposes of this Paragraph 3(b), your death or disability shall
constitute a termination of your employment by the Company for a reason other
than for “cause”, and, in such event, the Company shall take such steps as may
be necessary or appropriate to make such options immediately exercisable for a
period of at least twelve (12) months following such termination of your
employment.

 

(c)           If you voluntarily leave the employ of the
Company for any reason, the Company shall pay you, as severance pay, provided
that you have not breached the provisions of paragraph 4 hereof and provided
the Company shall not have “cause” to terminate your employment, your salary at
the rate in effect immediately prior to your leaving the Company’s employ for a
period of one (1) year in normal payroll installments in accordance with the
Company’s then payroll practices or, at the Company’s option, in a lump sum.

 

4.                                      Additional
Provisions.  

 

During your
employment by the Company and for a period of two years thereafter, you agree
that you will not: (a) whether alone or in association with any other person,
directly or indirectly, engage or be interested in any business or enterprise
in the United States that is competitive with the business of the Company.  For purposes of this paragraph, you will be
considered to have been engaged or interested in any business or enterprise if
you are interested in such business or enterprise as a stockholder, director,
officer, employee, agent, broker, partner, individual proprietor, lender,
consultant or in any other capacity, except that nothing herein contained will
prevent you from owning less than one percent (1%) of any class of equity or
debt securities of any publicly traded company.  For purposes of this paragraph, a business or enterprise will be
deemed competitive with the business of the

 

 

Company if it
includes the operation of specialty stores substantially engaged in the sale of
linens, housewares or home furnishings; (b) whether alone or in association
with any other person, directly or indirectly, (i) solicit or induce, or
attempt to solicit or induce, any employee of the Company to leave the employ
of the Company; (ii) employ, or solicit for employment, on your behalf or on
behalf of any other person (other than the Company), any person that is or was
at any time an employee of the Company; or (iii) trade with any supplier of the
Company without the Company’s consent. 
You also agreed that you will not during or after your employment by the
Company, knowingly divulge, furnish or make accessible to any third person or
organization other than in the regular course of the Company’s business any
confidential information concerning the Company or its subsidiaries or its or
their business, including, without limitation, confidential methods of
operation and organization, confidential sources of supply and customer or
other mailing lists.

 

The provisions
of this paragraph 4 shall survive the end of the term of your employment
hereunder.  You acknowledge that any
remedy at law for a breach or threatened breach of any of the provisions of
this paragraph 4 may be inadequate and that accordingly the Company shall be
entitled to an injunction or specific performance or any other mode of
equitable relief without the necessity of showing any actual damage, posting a
bond or furnishing other security.

 

5.                                      Miscellaneous.

 

(a)                  The Company may, at its option and
for its benefit, obtain insurance with respect to your death, disability or
injury.  You agree to submit to such
physical examinations and supply such information as may be reasonably required
in order to permit the Company to obtain such insurance.

 

(b)                 Any notice or other communication
required or permitted to be given hereunder shall be deemed to have been duly
given when personally delivered or when sent by registered mail, return receipt
requested, postage prepaid, as follows:

 

If to the Company,
at:

 

Bed Bath &
Beyond Inc.

650 Liberty
Avenue

Union, NJ  07083

 

Either party
hereto may change its or his address for the purpose of this paragraph by
written notice similarly given.

 

(c)                  Neither party hereto may assign its
rights or delegate its duties hereunder, except that the Company may assign its
rights hereunder to any person that (i) acquires substantially all of the
business and assets of the Company (whether by merger, consolidation, purchase
of assets or other acquisition transaction)

 

 

and (ii) agrees in writing to assume the obligations of the Company
hereunder.  This agreement shall be
construed and enforced in accordance with the internal laws of the State of New
York, without regard to principles of conflicts of laws.  Nothing in this agreement shall create, or
be deemed to create, any third party beneficiary rights in any person,
including, without limitation, any employee of the Company other than you.  You agree that all actions or proceedings
relating to this agreement shall be tried and litigated only in the New York
State or Federal courts located in the County of New York, State of New
York.  You hereby irrevocably submit to
the exclusive jurisdiction of such courts for the purpose of any such action or
proceeding.  If any provision of this
agreement shall be held to be invalid or unenforceable, such invalidity or
unenforceability shall attach only to such provision and shall not affect or
render invalid or unenforceable any other provision of this agreement, and this
agreement shall be construed as if such provision had been drawn so as not to
be invalid or unenforceable.  This
letter sets forth our entire understanding with respect to the subject matter
hereof and cannot be changed, waived or terminated except by a writing signed
by you and the Company.  Any waiver by
either party of a breach of any provision of this agreement shall not operate
as or be construed to be a waiver of any other breach of such provision or of
any breach of any other provision of this agreement.  This agreement shall be binding on the successors and assigns of
the Company.

 

If the foregoing correctly sets forth your understanding of our
agreement, please so indicate by signing and returning to us a copy of this
letter.

 

 

	
   

  	
  BED BATH
  & BEYOND INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
    /s/ Warren Eisenberg

  	
   

  
	
   

  	
  Warren
  Eisenberg, Co-Chief Executive Officer

  
	
   

  	
   

  
	
   

  	
   

  
	
  ACCEPTED AND
  APPROVED:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  /s/ Eugene A. Castagna

  	
   

  	
   

  
	
  Mr. Eugene
  A. Castagna

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