Document:

EX-10.11

  Exhibit 10.11

  DESTINATION XL GROUP, INC.

  SIXTH AMENDED AND RESTATED

  NON-EMPLOYEE DIRECTOR COMPENSATION PLAN

   

  Section 1.  Establishment and Purpose.

   

  Destination XL Group, Inc. (the “Company”) hereby amends and restates the Destination XL Group, Inc. Fifth Amended and Restated Non-Employee Director Compensation Plan (as amended from time to time, the “Plan”), for the purpose of supporting the Company’s ongoing efforts to attract and retain exceptional directors to provide strategic guidance to the Company.  The Plan provides a convenient method by which Non-Employee Directors may acquire shares of Common Stock of the Company (“Shares”) at fair market value by voluntarily electing to receive Shares in lieu of fees otherwise payable to them in cash for service as a director or member of a committee of the Board of Directors of the Company (the “Board”).  The Plan also provides for share ownership guidelines for Non-Employee Directors.  Until a Participant has met the ownership guidelines as set forth in the Plan, the Participant is required to receive a specified percentage of the Participant’s compensation hereunder in Shares (as defined below “Required Shares”).  Any Shares a Participant acquires pursuant to this Plan in the form of Required Shares shall come from the Incentive Compensation Plan. In addition, each Participant, at his/her discretion, will be able to elect to receive Shares for any remaining portion of compensation hereunder (“Discretionary Shares”).  Any Shares a Participant acquires pursuant to this Plan in the form of Discretionary Shares shall come from the Shares reserved for issuance under Section 4 of this Plan, subject to adjustment as the Board may from time to time determine, and not from the Incentive Compensation Plan.  The Plan shall be effective as of December 15, 2021 (the “Effective Date”).  Elections for fiscal 2022 and thereafter must be submitted to the Company in accordance with Section 3(c) no later than December 31 of the year preceding the fiscal year for which the election is to be effective.

   

  Section 2.  Definitions.

   

  When used herein, the following capitalized terms shall have the meanings assigned to them, unless the context clearly indicates otherwise.  Capitalized terms used herein and not defined shall have the meanings assigned to them in the Incentive Compensation Plan.

  (a)“Board Chair/Lead Director” means an independent director whose responsibilities, if the Board Chair, shall be as set forth for the Chairman of the Board in the Company’s By-laws, and, if the Lead Director, shall include the following and any other responsibilities determined by the Board: (i) presiding at all meetings of the Board at which the Chairman is not present, including executive sessions of the independent directors; (ii) serving as liaison between the Chairman and the independent directors; (iii) reviewing and approving materials to be sent to the Board; (iv) approving the meeting agendas for the Board; (v) approving meeting schedules to assure that there is sufficient time for discussion of all agenda items; (vi) having the authority to call meetings of the independent directors; and (vii) if requested by major shareholders, ensuring that he or she is available for consultation and direct communication. 

   

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  (b)“Cash” means U.S. dollars.

   

  (c)“Common Stock” means the common stock of the Company, par value $.01 per share.

   

  (d)“Compensation” means an award under the Plan that is payable in the form of Cash and/or Shares pursuant to the terms and conditions set forth in this Plan.

   

  (e)“Compensation Payment Choice” means the form of payment of Compensation that a Participant selects in accordance with the terms hereof.

   

  (f)“Exchange Act” means the Securities Exchange Act of 1934, as amended from time to time, including rules thereunder and successor provisions and rules thereto.

   

  (g)“Grant Date” means the following: each quarterly retainer, Board Chair/Lead Director and committee chairperson fees payable pursuant to Sections 3(a)(i)-(iv) hereof shall be paid on, and the Grant Dates shall be, the first business day of each quarter in each fiscal year. 

   

  (h)“Incentive Compensation Plan” means the Company’s 2016 Incentive Compensation Plan, as amended from time to time, or any shareholder-approved successor plan to the Company’s 2016 Incentive Compensation Plan. 

   

  (i)“Irrevocable Election Agreement” means the written agreement, substantially in the form of Exhibit A, between the Company and a Participant, which, together with the Plan, governs the Participant’s rights to payment of Compensation under the Plan.

   

  (j)“Minimum Ownership Threshold” means owning Shares equal in value to at least a minimum of three times the aggregate retainer  amount paid in a fiscal year pursuant to Section 3(a)(i).

   

  (k)“NASDAQ” means The Nasdaq Stock Market, LLC, or other securities exchange on which the Common Stock may be traded. 

   

  (l)“Non-Employee Director” means a Director who satisfies the requirements set forth in Rule 16b-3(b)(3)(i) under the Exchange Act.

   

  (m)“Participant” means a Non-Employee Director of the Company.

   

  (n)“Separation from Service” means the earliest date on which a Participant has incurred a separation from service, within the meaning of Section 409A(a)(2) of the Code, with the Service Recipient.

   

  (o)“Service Recipient” means the Company and all persons with whom the Company would be considered a single employer under Section 414(b) of the Code (employees of a controlled group of corporations), and all persons with whom such person would be considered a single employer under Section 414(c) of the Code (employees of partnerships, proprietorships, or other entities under company control).

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  (p)“Treasury Regulations” means the regulations promulgated by the United States Treasury Department with respect to the Code, as amended from time to time.

    

  Section 3.  Compensation; Irrevocable Election; Holding Requirement; Valuation. 

   

  (a)Compensation.  The Compensation paid to the Participants shall be as follows:

   

  i.a retainer equal to $33,750 per fiscal quarter;

  ii.to the Board Chair/Lead Director, a fee equal to $10,000 per fiscal quarter;

  iii.to the chairperson of the Company’s audit committee, a fee equal to $5,000 per fiscal quarter; and

  iv.to the chairperson of any of the Company’s other committees, a fee equal to $2,500 per fiscal quarter.

   

  The retainer, Board Chair/Lead Director fee and respective chairperson fees described in Sections 3 (a)(i)-(iv) shall be earned on a quarterly basis based on the Company’s fiscal year and shall be payable by the Company on the first business day in each quarter in each fiscal year.  If a Participant is initially elected or appointed to the Board on a date other than the first business day of a fiscal quarter (the “Start Date”), such Participant shall receive, on or as soon as practicable following such Start Date, a prorated portion of the retainer, Board Chair/Lead Director and chairperson fees, if applicable, otherwise payable to such Participant for such fiscal quarter, with such prorated portion determined by multiplying the retainer, Board Chair/Lead Director and any applicable chairperson fees by a fraction, the numerator of which is the number of days remaining from the Start Date until the end of the applicable fiscal quarter and the denominator of which is the number of days in the applicable fiscal quarter.  If a Participant notifies the Company that he or she will not stand for re-election at the Company’s Annual Meeting of Stockholders (the “Annual Meeting”), but will serve as a Participant up until the date of the Annual Meeting, Participant will receive a pro-rated portion of his or her quarterly retainer, Board Chair/Lead Director and chairperson fees, as applicable, for the fiscal quarter in which the Annual Meeting occurs, calculated from the first day of the fiscal quarter in which the Annual Meeting occurs until the date of the Annual Meeting, payable in cash.  Subject to the terms hereof, Compensation shall be paid on the applicable Grant Date.

   

  (b)Election of Discretionary Shares.  Participants will have the right to elect payments of the values set forth above in any combination of Cash or Discretionary Shares, in addition to any Required Shares received pursuant to Section 3(d).  Compensation paid in the form of Discretionary Shares pursuant to this Plan can only be made if there is a sufficient number of Shares available under Section 4 of this Plan. If not, the provisions of Section 4 shall apply. 

   

  (c)Election Procedures.  The elections by the Participants to receive Discretionary Shares must be made in writing substantially in the form of Exhibit A attached hereto and submitted to the General Counsel of the Company (or such other person as the Committee shall designate) no later than December 31st of the year preceding the fiscal year for which 

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  the election is to be effective.  All elections, once submitted, are irrevocable for that fiscal year.  During the fiscal year, once the Minimum Ownership Threshold has been met by a Participant, any additional Shares payable to such Participant shall be deemed Discretionary Shares.  In the event a timely election is not made or a person does not become a Participant until after the deadline for the election to be made or who becomes a Participant during a fiscal year, the Participant may not make an election to receive Discretionary Shares until the following year.

   

  (d)Requirement to Hold Equity.  Within five years of a Participant’s election or appointment to the Board (or, if later, five years following the Effective Date), a Participant is expected to own and maintain Shares meeting the Minimum Ownership Threshold.  Until such time as the Participant meets the Minimum Ownership Threshold, the Participant will be required to receive 60% of his or her retainer paid pursuant to Section 3(a)(i) in the form of Required Shares, subject to the Share limitation set forth in Section 4.  So long as a Participant meets the Minimum Ownership Threshold, a Participant will be permitted to sell Shares in excess of the Minimum Ownership Threshold, but only if such sale is effectuated in compliance with the Company’s Securities Trading Policy then in effect.  A Participant is required to hold the Shares constituting the Minimum Ownership Threshold until his/her Separation from Service, unless otherwise approved by the Board. 

   

  The following may be used in determining the Shares held by a Participant: (i) Shares owned directly (including through open market purchases or acquired pursuant to the Plan), (ii) Shares owned jointly with or separately by the Participant’s spouse, (iii) Shares held in trust for the benefit of the Participant or in trust for the benefit of the Participant’s spouse or children for which the Participant acts as trustee , and (iv) Shares owned by a partnership, limited liability company or other entity to the extent of the Participant’s interest therein (or the interest therein of his or her immediate family members), but only if the Participant has or shares power to vote or dispose of the Shares.  The value of Shares to be held by a Participant will be calculated based on the closing sale price of a Share as reported by NASDAQ, or other quotation system or securities exchange on which the Common Stock may be traded, on the trading day immediately prior to the Grant Date. In determining compliance with the Minimum Ownership Threshold, the Committee may evaluate whether exceptions to the Minimum Ownership Threshold should be made for a particular Participant who would incur a hardship by complying with the Minimum Ownership Threshold, including, but not limited to, allowing Participants additional time to regain compliance and/or suspending ownership requirements in the event of significant declines in the price of Shares.

   

  (e)Valuation of Shares.  For the purposes of determining the number of Shares to be issued to a Participant on a Grant Date, each Share shall be assigned a value equal to the closing sale price of a Share as reported by NASDAQ, or other quotation system or securities exchange on which the Common Stock may be traded, on the effective Grant Date.  Any Shares granted pursuant to this Plan shall be fully vested on the Grant Date.  Payouts of Shares under the Plan will be in the form of whole Shares only; the de minimis balance of any foregone fees not payable in whole Shares will not be paid.

   

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  Section 4. Number of Shares Under the Plan.  

   

  Subject to adjustment as the Board may from time to time determine, the total number of Shares reserved and available under the Plan with respect to Discretionary Shares shall be 1,500,000, as adjusted for any stock dividends, combinations, splits, recapitalizations and the like.  The maximum number of Shares (the aggregate of both Restricted Shares and Discretionary Shares) that can be granted in any fiscal quarter is 250,000 Shares.  If the aggregate number of Shares needed for the payment of Compensation to all electing Participants in a given quarter exceeds 250,000 Shares, the 250,000 Shares shall first be allocated ratably in proportion towards the satisfaction of any Required Shares with any remaining Shares allocated ratably in proportion to the respective Discretionary Share amounts which would otherwise be payable to them absent such limitation or insufficiency. 

   

  Section 5. Additional Compensation.

   

  In the event of the creation of a special Board committee tasked with working on a significant corporate event (a “Special Committee”), the Board shall determine the amount, timing and form of payment of any additional Compensation which it determines should be paid to the Participants serving on the Special Committee.

   

  Section 6.  Amendment and Termination. 

   

  This Plan may be amended or terminated in any respect at any time by the Board; provided, however, that no amendment or termination of the Plan shall be effective to reduce any benefits that accrue and are vested before the adoption of such amendment or termination.  If and to the extent permitted without violating the requirements of Section 409A of the Code, the Committee may require that the Compensation of all Participants be paid in cash as soon as practicable after such termination, notwithstanding any elections by Participants with regard to the timing or form in which their benefits are to be paid.  If and to the extent that the Committee does not accelerate the timing of payments on account of the termination of the Plan pursuant to the preceding sentence, payment of any remaining benefits under the Plan shall be made at the same times and in the same manner as such payments would have been made based upon the most recent elections made by Participants, and the terms of the Plan, as in effect at the time the Plan is terminated.

   

  Section 7.  Unfunded Obligation. 

   

  The obligations of the Company to pay any Compensation under the Plan shall be unfunded and unsecured, and any payments under the Plan shall be made from the general assets of the Company.  Participants’ rights under the Plan are not assignable or transferable except to the extent that such assignment or transfer is permitted under the terms of the Incentive Compensation Plan (regardless of the fact that payment hereunder is not being made under the Incentive Compensation Plan).

   

  Section 8.  Withholding. 

   

  The Participants and personal representatives shall bear any and all federal, state, local or other taxes imposed on benefits under the Plan.  The Company may deduct from any payments under 

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  the Plan the amount of any taxes required to be withheld from such payments by any federal, state or local government, and may deduct from any Compensation or other amounts payable to the Participant the amount of any taxes required to be withheld with respect to any other amounts under the Plan by any federal, state or local government.

   

  Section 9.  Applicable Law. 

   

  This Plan shall be construed and enforced in accordance with the laws of the State of Delaware, except to the extent superseded by federal law.

   

  Section 10.  Administration and Interpretation. 

   

  The Plan will be administered by the Committee.  The Committee shall not make any substantive changes to the Compensation set forth in this Plan without the approval of the Board.  The Committee will have broad authority to adopt rules and regulations relating to the Plan and make decisions and interpretations regarding the provisions of the Plan.  Benefits due and owing to a Participant under the Plan shall be paid when due without any requirement that a claim for benefits be filed.  However, any Participant who has not received the benefits to which Participant believes himself or herself entitled may file a written claim with the Committee, which shall act on the claim within thirty days.  Any decisions or interpretations by the Committee relating to benefits under the Plan shall be binding and conclusive on all affected parties.

   

  Section 11.  Code Section 409A. 

   

  It is intended that the Compensation granted pursuant to this Plan be exempt from Section 409A of the Code (“Section 409A”) because it is believed the Compensation payable in Cash and Shares should qualify for the short-term deferral exception contained in Treasury Regulation §1.409A-1(b)(4). The provisions of the Plan shall be interpreted in a manner consistent with the foregoing intentions.  

   

  The Committee, in its sole discretion, and without the consent of any Participant or Beneficiary, may amend the provisions of this Plan to the extent that the Committee determines that such amendment is necessary or appropriate in order for the Compensation paid pursuant to the Plan to be exempt from the requirements of Section 409A, or if and to the extent that the Committee determines that the Compensation is not so exempt, to amend the Plan  (and any agreements relating to any Compensation) in such manner as the Committee shall deem necessary or appropriate to comply with the requirements of Section 409A.  

   

  Notwithstanding the foregoing, the Company does not make any representation to any Participant or Beneficiary that the Compensation paid pursuant to this Plan is exempt from, or satisfies, the requirements of Section 409A, and the Company shall have no liability or other obligation to indemnify or hold harmless any Participant or Beneficiary for any tax, additional tax, interest or penalties that the Participant or Beneficiary may incur in the event that any provision of the Plan or any Compensation agreement, or any amendment or any modification thereof, or any other action taken with respect thereto, is deemed to violate any of the requirements of Section 409A.

   

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  THIS SPACE IS LEFT BLANK INTENTIONALLY

   

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  EXHIBIT A
 

  DESTINATION XL GROUP, INC. 

  SIXTH AMENDED AND RESTATED
NON-EMPLOYEE DIRECTOR COMPENSATION PLAN (THE “PLAN”)

   

  IRREVOCABLE ELECTION AGREEMENT

   

  TO:	General Counsel:

   

  I, _____________________________, hereby understand that, if the value of Shares that I own does not meet the Minimum Ownership Threshold (calculated in accordance with Section 3(d) of the Plan), then I am required to receive 60% of the Retainer in Required Shares.  Further, I understand that I am able to elect more than the 60% of Required Shares for the Retainer.  If, after meeting the Minimum Ownership Threshold, the value of the Shares that I own subsequently falls below the Minimum Ownership Threshold, I understand that I will be required to receive 60% of the Retainer in Required Shares until the value of the Shares that I own again meets the Minimum Ownership Threshold. 

   

  Therefore, I elect to receive my Compensation (as defined in the Plan) as follows:

   

  PLEASE COMPLETE ALL COLUMNS

   

  					
	 
COMPENSATION
	 
Cash
	Required
Shares (until Minimum Ownership Threshold is met)
	Discretionary
Shares
	 
TOTAL

	 
Retainer (Discretionary election in addition to the 60% Required Shares)*
	 
_______%
	 
60%
	 
______%
	 
100%

	Retainer 
(Once the Minimum Ownership Threshold has been met, even during a fiscal year)
	______%
	N/A
	_____%
	100%

	Board Chair / 
Lead Director Fee
	 
_______%
 
	N/A
	 
______%
	 
100%

	 
Committee Chair Fee
	 
_______%
 
	N/A
	 
______%
 
	 
100%

   

  * Every row must be completed by each Participant. Participants who have not achieved Minimum Ownership Threshold are required to receive 60% of the Retainer in Required Shares as is reflected in the first row of the table above.  During the course of the fiscal year, so long as the Minimum Ownership Threshold has been met, all payments shall be made pursuant to the Retainer elections in the second row.

   

  NOTE: You have the opportunity to decide the Compensation Payment Choice of Cash and/or Shares.  Your selected choice(s) for any given year must equal 100%.  

   

  I understand and acknowledge that as discussed in Section 4 of the Plan, if the aggregate Required Shares and Discretionary Shares to be granted to all Participants in a quarter exceeds the maximum number of Shares permitted, Shares shall first be allocated to Participants ratably in proportion towards the satisfaction of any Required Shares with any remaining Shares allocated ratably in proportion to the respective Discretionary Share amounts that would otherwise be payable to the Participant absent such limitation or insufficiency, with the shortfall to be paid in Cash.  

   

  I understand and acknowledge that I may not sell Shares unless the value of Shares that I own exceeds the Minimum Ownership Threshold as calculated in accordance with Section 3(d).  If I meet the Minimum Ownership Threshold, I understand and acknowledge that I may sell Shares provided such sales do not result in my no longer meeting the Minimum Ownership Threshold, and that any such sales must be effectuated in compliance with the Company’s Securities Trading Policy then in effect.

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  I understand and acknowledge that this election is irrevocable.  I understand and acknowledge that I must be a Non-Employee Director on the dates each portion of the Compensation is paid in order to qualify for such payment.

   

  I understand and acknowledge that if there is any conflict between this form or any part of it and the Plan, the provisions of the Plan shall govern. 

   

  I have hereunto set my hand and seal this ____ day of ___________, 20___.

   

   

  _____________________________		____________________________

   (Signature)					(Printed name) 

  9Document

    

                                    Jeff Desroches
                                     
EMPLOYMENT AGREEMENT
AGREEMENT effective as of April 8, 2018 between Jeff Desroches, whose address is 
                                                                                      (“Executive”), and BJ’s Wholesale Club, Inc., a Delaware corporation, whose principal office is 25 Research Drive, Westborough, Massachusetts (“Employer” or “Company”).  
W I T N E S S E T H
WHEREAS, the Company desires to employ the Executive, and the Executive desires to be employed by the Company;
NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein, the sufficiency of which is acknowledged by each party, and intending to be legally bound hereby, the Company and the Executive agree as follows: 
1.      Employment and Duties.  
1.1      Employment. Commencing on April 8, 2018 (the “Effective Date”), the Company agrees to employ the Executive and the Executive agrees to be employed by the Company subject to the terms set forth herein.
1.2    Duties. As of the Effective Date, the Executive shall serve the Company as its Executive Vice President, Chief Operations Officer, to serve in such capacity or other capacities as designated by the Board of Directors, the Chief Executive Officer (“CEO”) or his/her designee from time to time. During the term of this Agreement, the Executive shall serve the Company faithfully, diligently and to the best of his/her ability and shall devote substantially all of his/her business time, energy and skill to the affairs of the Company as necessary to perform the duties of his/her position, and he/she shall not assume a position in any other business without the express written permission of the CEO; provided that the Executive may upon disclosure to the CEO: (i) serve as a member of not more than one for-profit board of directors so long as the Executive receives prior written permission from the CEO, (ii) serve in any capacity with charitable or not-for-profit enterprises so long as there is no material interference with the Executive’s duties to the Company and (iii) make passive investments where the Executive is not obligated or required to, and shall not in fact, devote any managerial efforts.  The Company shall have the right to limit the Executive’s participation in any of the foregoing endeavors if the CEO believes, in his/her sole and exclusive discretion, that the time being spent on such activities infringes upon, or is incompatible with, the Executive’s ability to perform the duties under this Agreement.
2.    Compensation and Benefits.  
2.1    Base Salary. The Executive shall receive a Base Salary at the rate of $415,000 per year. Such Base Salary shall be subject to periodic adjustment from time to time as determined by the Board of Directors in its sole discretion. Base Salary shall be payable in such manner and at such times as the Company shall pay base salary to other similarly situated the executive employees.
    2.2    Policies and Fringe Benefits. The Executive agrees to abide by the rules, regulations, instructions, personnel practices and policies of the Company and any changes 
    

therein that may be adopted from time to time by the Company. The Executive shall be eligible to participate in all benefit programs that the Company establishes and makes available to all of its executives on such terms as the Board of Directors shall determine, if any, to the extent that the Executive meets the eligibility requirements to participate as set forth in the applicable plan or policy. Nothing herein limits the Company’s right to modify, change, limit eligibility, or discontinue any plan or policy at any time, with or without prior notice.
    2.3    Reimbursement of Expenses. The Company shall reimburse the Executive for all reasonable and appropriate travel, entertainment and other expenses incurred or paid by the Executive in connection with, or related to, the performance of his/her responsibilities or services under this Agreement, in accordance with policies and procedures, and subject to limitations, adopted by the Company from time to time.  
            2.4    Withholding. All salary and other compensation payable to the Executive pursuant to this Agreement shall be subject to applicable taxes and withholdings.  
3.    Termination of Employment and Benefits upon Termination.
3.1    General. The Executive’s employment pursuant to this Agreement shall terminate upon the earliest to occur of (i) the Executive’s death, (ii) a termination by reason of disability, (iii) a termination by the Company with or without Cause, or (iv) a termination by the Executive. Whenever the Executive’s employment shall terminate, and regardless of the reason for such termination, effective that same date he/she shall resign all offices, appointments and/or other positions the Executive may hold with the Company including, but not limited to, any parent corporation, subsidiaries or divisions of the Company or any such parent.  
    3.2    Termination Due to Death. The Executive’s employment shall automatically terminate upon the date of the Executive’s death. No compensation or other benefits shall be payable to or accrue to the Executive hereunder except as follows: 
    (a)     (i)    all amounts earned but unpaid hereunder through the date of termination with respect to salary and vested but unused vacation; (ii) to the extent not already paid, any amounts to which the Executive is entitled under the Company’s annual incentive compensation plan for the fiscal year ended immediately prior to the date of termination; (iii) his/her vested account balance under the BJ’s Wholesale Club, Inc. 401(k) Savings Plan for Salaried Employees; and (iv) any unreimbursed expenses incurred in accordance with Company policy (collectively, “Earned Obligations”);
    (b)    any amounts the Executive would have been entitled to receive under the Company’s annual incentive compensation plan had the Executive remained employed by the Company until the end of the fiscal year during which the termination of employment occurs (prorated for the period of active employment during such fiscal year). All such amounts, if any, will be paid to the Executive’s estate at the same time as other incentive compensation plan payments for the year in which the termination occurs are paid; and 
(c)    any payments or benefits under other plans of the Company to the extent such plans provide for benefits following the Executive’s death.  
    3.3    Termination Due to Disability. The Executive’s employment may be terminated by reason of the Executive’s disability, upon notice to the Executive, in the event of the inability of the Executive to perform his/her duties hereunder by reason of disability, whether by reason of injury (physical or mental), illness (physical or mental) or otherwise. For purposes of this 
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Agreement, a disability is defined as the occurrence when the Executive is incapacitated for a continuous period exceeding one hundred twenty (120) days, as certified by a physician selected by the Executive and the Company in good faith. No compensation or other benefits shall be payable to or accrue to the Executive hereunder except as follows:  
(a)    all Earned Obligations;
(b)    any amounts the Executive would have been entitled to receive under the Company’s annual incentive compensation plan had the Executive remained employed by the Company until the end of the fiscal year during which the termination of employment occurs (prorated for the period of active employment during such fiscal year). All such amounts, if any, will be paid at the same time as other incentive compensation plan payments for the year in which the termination occurs are paid; and
(c)    any payments or benefits under other plans of the Company to the extent such plans provide for benefits following a termination of employment due to disability.  
    3.4    Termination by the Company for Cause or by the Executive. The Company may terminate the Executive’s employment at any time for Cause by providing the Executive notice of such termination. For the purpose of this Agreement, termination by the Company for Cause shall refer to the Company’s termination of the Executive’s employment because it has determined, in its sole and exclusive discretion, that he/she has:  (i) refused or failed to devote his/her full normal working time, skills, knowledge, and abilities to the business of the Company and in promotion of its interests or he/she has failed to fulfill directives of the CEO, the CEO’s designee or the Board of Directors; (ii) engaged in activities involving dishonesty, willful misconduct, willful violation of any law, rule, regulation or policy of the Company or breach of fiduciary duty; (iii) committed larceny, embezzlement, conversion or any other act involving the misappropriation of the Company’s funds or property; (iv) been convicted of any crime which reasonably could affect in an adverse manner the reputation of the Company or the Executive’s ability to perform his/her duties hereunder; (v) been grossly negligent in the performance of his/her duties; or (vi) materially breached this Agreement including, but not limited to, his/her obligations set forth in Sections 4 and 5 below.  If the Executive’s employment terminates pursuant to this Section 3.4 by the Company for Cause or by reason of the Executive’s resignation at any time, the Executive shall only receive the Earned Obligations, if any, through his/her termination date. Nothing herein waives any rights the Company may have for damages or equitable relief.  
3.5    Termination by the Company Without Cause. The Company may terminate the Executive’s employment without Cause at any time effective upon the Executive’s receipt of notice of such termination. No compensation or other benefits shall be payable to or accrue to the Executive in the event of his/her termination without Cause except as follows:
(a)    all Earned Obligations;
(b)    In the event of such termination, then subject to the Executive entering into a binding and irrevocable release of claims and separation agreement prepared by the Company and the expiration on or before the 60th day after the Executive’s separation from service of any period during which the Executive is entitled to revoke the release, the Executive shall be eligible on such sixtieth (60th) day to receive:

(1)  continuation of Base Salary for a period of twenty-four (24) months (the “Severance Period”), payable in such manner and at such times as the 
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Executive’s Base Salary was being paid immediately prior to such termination;
(2)  an amount equal to the difference between the Executive’s actual COBRA premium costs and the amount the Executive would have paid had the Executive continued coverage as an employee under the Company’s applicable health plans without regard to the pre-tax benefits the Executive would have received under the BJ’s Wholesale Club, Inc. Flexible Benefits Plan provided that the Executive elects to continue to participate in the Company’s medical and/or dental plans for team members pursuant to a valid COBRA election (and if and only if such participation is legally and contractually permissible) and provided, however, that the Company’s obligations under this clause 3.5(b)(2) shall (A) not extend beyond the Severance Period, (B) be eliminated if the Executive discontinues COBRA benefits or (C) be reduced or eliminated to the extent that the Executive receives similar coverage and benefits under the plans and programs of a subsequent employer or entity or becomes eligible for similar coverage under a spouse’s employer;
(3)  any amounts the Executive would have been entitled to receive under the Company’s annual incentive compensation plan had the Executive remained employed by the Company until the end of the fiscal year during which the termination of employment occurs (prorated for the period of active employment during such fiscal year). All such amounts, if any, will be paid at the same time as other incentive compensation plan payments for the year in which the termination occurs are paid;
(c)      payments or benefits under other plans of the Company to the extent that the plans provide for benefits following a termination of employment.  
Notwithstanding the foregoing, the payments and benefits described in Section 3.5(b) above shall immediately terminate, and the Company shall have no further obligations to the Executive with respect thereto, in the event that the Executive (i) becomes employed by Wal-Mart Stores, Inc., Costco Wholesale Corporation, Sam’s Club, or any of their respective subsidiaries or affiliates; or (ii) breaches any provision of Sections 4 or 5 of this Agreement.  

3.6    Special Rules Applicable to Deferred Compensation.  

  Notwithstanding anything herein to the contrary, Sections 3.3(a), 3.3(c), 3.4, 3.5(a) and 3.5(c) shall be construed and applied so that the time of payment of any amount constituting the deferral of compensation, within the meaning of Section 409A(d) of the Code and the regulations issued thereunder, shall be determined in accordance with the plan or other arrangement providing such payment and shall not be accelerated as a result of the Executive’s disability or termination of employment to which this Agreement applies.

4.    Non-Competition and Non-Solicitation.
        4.1    Restricted Activities. While the Executive is employed by the Company and for a period of twenty-four (24) months after the termination or cessation of such employment for any reason, the Executive will not directly or indirectly:

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(a)    Engage in any activity (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) for Wal-Mart Stores Inc., Costco Wholesale Corporation, or Target Corporation, or any of their respective subsidiaries or affiliates (including, without limitation, Sam’s West, Inc. and Sam’s East, Inc. and any successors thereof) (such companies, the “Named Competitors”), or any other person or entity that competes with the Company with respect to any business or activity of the Company entered into by the Company after the Effective Date; provided, however, that in the event Executive is employed by Bain & Company, Inc., the foregoing restriction shall apply for a period of 24 months as to the Named Competitors and 12 months as to all other companies; or
(b)    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 the Company to leave the employ of the Company, 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 who was employed by the Company at the time of the termination or cessation of the Executive’s employment with the Company; provided that this clause (ii) shall not apply to the solicitation, hiring or engagement of any individual whose employment with the Company has been terminated for a period of six (6) months or longer at the time of such solicitation, hiring or employment.
        4.2    Extension of Restrictions. If the Executive violates the provisions of Section 4.1, the twenty-four (24) month period referred to in Section 4.1 shall recommence and the Executive shall continue to be bound by the restrictions set forth in Section 4.1 until a period of twenty-four (24) months has expired without any violation of such provisions.

        4.3    Interpretation. If any restriction set forth in Section 4.1 is found by any court of competent jurisdiction 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 only over the maximum period of time, range of activities or geographic area as to which it may be enforceable.

        4.4    Equitable Remedies. The restrictions contained in this Section 4 are necessary for the protection of the business and goodwill of the Company and are considered by the Executive to be reasonable for such purpose. The Executive agrees that any breach of this Section 4 is likely to cause the Company substantial and irrevocable damage which is difficult to measure. Therefore, in the event of any such breach or threatened breach, the Executive agrees that the Company, in addition to such other remedies which may be available, 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 4, and the Executive hereby waives the adequacy of a remedy at law as a defense to such relief.

5.    Proprietary Information.
        5.1    Proprietary Information.

(a)    The Executive agrees that all information, whether or not in writing, of a private, secret or confidential nature concerning the Company’s business, business relationships or financial affairs (collectively, “Proprietary Information”) is and shall be the exclusive property of the Company. By way of illustration, but not limitation, Proprietary Information may include inventions, products, processes, methods, 
5

techniques, formulas, compositions, compounds, projects, developments, plans, research data, financial data, personnel data, computer programs, customer and supplier lists, and contacts at or knowledge of customers or prospective customers of the Company. The Executive will not disclose any Proprietary Information to any person or entity other than employees of the Company or use the same for any purposes (other than in the performance of his/her duties as an employee of the Company) without written approval by an executive officer of the Company, either during or after his/her employment with the Company, unless and until such Proprietary Information has become public knowledge without fault by the Executive.
(b)    The Executive agrees that all files, letters, memoranda, reports, records, data, sketches, drawings, laboratory notebooks, program listings, or other written, photographic, or other tangible material containing Proprietary Information, whether created by the Executive or others, which shall come into his/her custody or possession, shall be and are the exclusive property of the Company to be used by the Executive only in the performance of his/her duties for the Company. All such materials or copies thereof and all tangible property of the Company in the custody or possession of the Executive shall be delivered to the Company, upon the earlier of (i) a request by the Company or (ii) termination of his/her employment. After such delivery, the Executive shall not retain any such materials or copies thereof or any such tangible property.
(c)    The Executive agrees that his/her obligation not to disclose or to use information and materials of the types set forth in paragraphs (a) and (b) above, and his/her obligation to return materials and tangible property set forth in paragraph (b) above also extends to such types of information, materials and tangible property of customers of the Company or suppliers to the Company or other third parties who may have disclosed or entrusted the same to the Company or to the Executive.
        5.2    Equitable Remedies. The restrictions contained in this Section 5 are necessary for the protection of the business and goodwill of the Company and are considered by the Executive to be reasonable for such purpose. The Executive agrees that any breach of this Section 5 is likely to cause the Company substantial and irrevocable damage which is difficult to measure. Therefore, in the event of any such breach or threatened breach, the Executive agrees that the Company, in addition to such other remedies which may be available, 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 5, and the Executive hereby waives the adequacy of a remedy at law as a defense to such relief.

6.    Other Agreements. The Executive represents that his/her performance of all the terms of this Agreement and the performance of his/her duties as an employee of the Company do not and will not breach any agreement with any prior employer or other party to which the Executive is a party (including without limitation any nondisclosure or non-competition agreement). Any agreement to which the Executive is a party relating to nondisclosure, non-competition, or non-solicitation of employees or customers is listed on Schedule A attached hereto.
7.    Miscellaneous.
        7.1    Notices. Any notice delivered under this Agreement shall be deemed duly delivered four (4) business days after it is sent by registered or certified mail, return receipt requested, postage prepaid, or one business day after it is sent for next-business day delivery via a reputable nationwide overnight courier service, in each case to the address of the recipient set forth in the introductory paragraph hereto. Either party may change the address to which notices 
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are to be delivered by giving notice of such change to the other party in the manner set forth in this Section 7.1.

        7.2    Pronouns. Whenever the context may require, any pronouns used in this Agreement shall include the corresponding masculine, feminine or neuter forms, and the singular forms of nouns and pronouns shall include the plural, and vice versa.

        7.3    Entire Agreement. This Agreement constitutes the entire agreement between the parties and supersedes all prior agreements and understandings, whether written or oral, relating to the subject matter of this Agreement.

        7.4    Amendment. This Agreement may be amended or modified only by a written instrument executed by both the Company and the Executive.

        7.5    Governing Law. This Agreement shall be governed by and construed in accordance with the laws of the Commonwealth of Massachusetts (without reference to the conflicts of laws provisions thereof), except as may be preempted by the Employee Retirement Income Security Act of 1974, 29 U.S.C. §1001 et seq. Any action, suit or other legal proceeding arising under or relating to any provision of this Agreement shall be commenced only in a court of the Commonwealth of Massachusetts (or, if appropriate, a federal court located within Massachusetts), and the Company and the Executive each consents to the jurisdiction of such a court. The Company and the Executive each hereby irrevocably waives any right to a trial by jury in any action, suit, or other legal proceeding arising under or relating to any provision of this Agreement.

        7.6    Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of both parties and their respective successors and assigns, including any corporation with which, or into which, the Company may be merged or which may succeed to the Company’s assets or business; provided, however, that the obligations of the Executive are personal and shall not be assigned by him/her.  

        7.7    Waivers. No delay or omission by the Company in exercising any right under this Agreement shall operate as a waiver of that or any other right. A waiver or consent given by the Company 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. Notwithstanding the foregoing, if the Company is merged with or into a third party which is engaged in multiple lines of business, or if a third party engaged in multiple lines of business succeeds to the Company’s assets or business, then for purposes of Section 4.1(a), the term “Company” shall mean and refer to the business of the Company as it existed immediately prior to such event and as it subsequently develops and not to the third party’s other businesses.

        7.8    Captions. The captions of the sections of this Agreement are for convenience of reference only and in no way define, limit or affect the scope or substance of any section of this Agreement.

        7.9    Severability. In case any provision of this Agreement shall be invalid, illegal, or otherwise unenforceable, the validity, legality, and enforceability of the remaining provisions shall in no way be affected or impaired thereby.

*     *     *     *     *

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THE EXECUTIVE ACKNOWLEDGES THAT HE/SHE HAS CAREFULLY READ THIS AGREEMENT AND UNDERSTANDS AND AGREES TO ALL OF THE PROVISIONS IN THIS AGREEMENT.
IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year set forth above. 
BJ’S WHOLESALE CLUB, INC.

 
_________________________________        __________________________________
Mark Griffin                          Jeff Desroches
Senior Vice President, Chief Human    Executive Vice President, Chief
Resources Officer    Operations Officer    

ATTEST:  ________________________        WITNESS:  ________________________
 

 

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SCHEDULE A
Agreements containing Restrictive Covenants

Schedule A
Executive’s initials_______

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