Document:

Exhibit
10.2

 

Bed Bath &
Beyond Inc.

 

November 16, 2009

 

Mr. Steven H. Temares

Chief Executive Officer

Bed Bath & Beyond Inc.

650 Liberty Avenue

Union, New Jersey 07083

 

Re:          Escrow Account with Respect
to Supplemental Executive Retirement Benefit

 

Dear Mr. Temares:

 

As you know, the letter agreement between you and
Bed Bath & Beyond Inc. (the “Company”), originally effective as of January 11,
2006, which set forth the terms and conditions of your supplemental executive
retirement benefit, is being amended and restated in its entirely effective as of
January 11, 2006, as memorialized in the letter agreement dated November 16,
2009 (the “SERP”).  Capitalized terms
used in this letter will have the meanings set forth in the SERP.

 

In connection with the amendment and restatement of
the SERP, your execution of this letter will evidence your agreement that
should you become eligible to receive a distribution from the SERP due to your retirement
or voluntary Separation from Service (a “Triggering Event”), your lump sum SERP
distribution, less all applicable withholding taxes, will be paid on the first
business day following the six month anniversary of the Triggering Event (the “First
Payment Date”) as follows: (a) 1/10 of the lump sum SERP distribution (net of
applicable withholding taxes) will be distributed to you; and (b) 9/10 of the lump
sum SERP distribution (net of applicable withholding taxes) will be deposited
into an escrow account to be held by an escrow agent, which escrow agent will
be mutually agreed upon by you and the Company (but which, in any event, shall
be a bank or other financial institution having assets of at least $10 billion).  In the event of a distribution from the SERP
due to your death, Disability, termination by the Company without Cause or
Separation from Service within 12 months following a Change in Control, no
escrow account will be established and you will be entitled to receive the SERP
distribution in accordance with the terms of the SERP.

 

You agree that, no later than 120 days following a
Triggering Event, you will enter into an escrow agreement by and among you, the
Company and the escrow agent which will set forth the terms and conditions with
respect to amounts held in the escrow account. 
You further agree that the escrow agreement will contain the following
terms:

 

1.             Amounts
deposited and held in the escrow account will be distributed in 9 equal annual
installments to be distributed on each of the 9 annual anniversaries of the First
Payment Date.

 

2.             You will have
the right to direct the investment of the funds in the escrow account from
among the permitted investments which will be: (i) debt obligations of the U.S.
government, (ii) short-term investment grade obligations of U.S. and foreign
corporations, including commercial paper, certificates of deposit, notes,
bonds, debentures, and (iii) pooled, commingled or mutual funds which invest
solely in the above.

 

 

3.             Interest,
dividends and other earnings on escrow account funds during the 12-month period
between distribution dates will be distributed to you annually with each annual
installment.  You will be responsible for
the payment of any income or other taxes arising as a result of such
distributions.  A net loss incurred by
the escrow account during any such 12-month period will reduce the annual
installment to be paid immediately following the conclusion of such 12-month
period (and, if necessary, any subsequent installments).

 

4.             In the event of
your death prior to payment of all 9 installments, the Company will direct the
escrow agent to pay the remaining amount in the escrow account, including
accrued investment earnings (such total amount the “Remaining Amount”) to the beneficiary(ies)
you have designated pursuant to the SERP (or, if you have not designated a
beneficiary, to your estate) no later than 30 days after your death.

 

5.             In the event of
a Change of Control of the Company that occurs on or after the deposit of the
Retirement Benefit into the escrow account and prior to payment of all 9
installments, the Company will direct the escrow agent to pay the Remaining
Amount to you simultaneously with the Change of Control, or as soon as possible
thereafter, but in no event later than 30 days following the Change in Control.

 

6.             In the event
you do not comply with the restrictive covenant not to compete with the Company
(as described in Section 4 of your Employment Agreement, but for the term of
the escrow agreement) (the “Restrictive Covenant”) prior to the payment of the entire
Remaining Amount from the escrow account, the Company will have the right
(subject to the provisions of the escrow agreement) to direct the escrow agent
to pay the Remaining Amount to the Company no later than 15 days after notice
to the escrow agent and to you, and you will forfeit any and all rights to the
Remaining Amount.  Notwithstanding the
foregoing, it is specifically understood and agreed that following a Change in
Control that occurs on or after the deposit of the Retirement Benefit into the
escrow account, no forfeiture due to a violation of Restrictive Covenant shall
occur, and the provisions of the Restrictive Covenant shall no longer be
applicable solely with respect to the Retirement Benefit.  Nothing in the SERP or this letter shall be
deemed to require compliance by you with the Restrictive Covenant beyond the
period specified in Section 4 of your Employment Agreement; the only
consequence of your breach of the Restrictive Covenant after the period
specified in Section 4 of your Employment Agreement and before the payment to
you of the entire Remaining Amount from the escrow account is the forfeiture of
the Remaining Amount in accordance with the terms of the SERP and this letter.

 

7.             The Company
will be responsible for payment of the escrow agent’s annual fees.

 

You further agree that in the event you violate the
Restrictive Covenant following the Triggering Event and prior to the payment of
the entire Remaining Amount, you will use commercially reasonable efforts (taking
into account applicable costs, fees and tax ramifications) to obtain a refund
from the appropriate taxing authorities of the withholding taxes previously
remitted on the portion of the Retirement Benefit forfeited by you under Section
6 above and, in the event any such amounts are refunded to you, you will
promptly remit such refunded amounts to the Company (less any other income or
other taxes, penalties or interest incurred by you solely as a result of any such
refund).  Upon written notice given to
you by the Company, you will, to the maximum extent permitted by law, assign to
the Company the right to obtain such refund. 
The Company shall promptly reimburse you for or pay on your behalf all
reasonable legal fees and expenses incurred by 

 

2

 

you in connection with any filings or proceedings to
the extent attributable to such refund request within 60 days after such fees
or expenses are incurred.  Such
reimbursement right shall continue for your lifetime and the lifetime of your
spouse as contemplated pursuant to the objectively and specifically prescribed period
requirement of Treasury Regulation Section 1.409A-3(iv)(A)(2), and will not be
subject to liquidation or exchange for another benefit.  The amount of such expenses reimbursed to you
or paid on your behalf in any one calendar year will not affect the amount of
such expenses eligible for reimbursement or payment in any other calendar year.

 

This Agreement sets forth all understandings with
regard to the escrow account to be established to hold your SERP distribution
in the event you retire or voluntarily incur a Separation from Service with the
Company.  This Agreement may not be
amended or terminated without the written agreement of both parties hereto.  This Agreement will be governed by the laws
of the State of New York without giving effect to its conflict of laws
principles.

 

	
   

  	
   

  	
  Sincerely,

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/
  Warren Eisenberg

  
	
   

  	
   

  	
  Warren
  Eisenberg

  
	
   

  	
   

  	
  Co-Chairman
  of the Board of Directors

  
	
   

  	
   

  	
   

  
	
  Acknowledged
  and Agreed by:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  /s/
  Steven H. Temares

  	
   

  	
   

  
	
  Steven
  H. Temares

  	
   

  	
   

  

 

3Exhibit
10.1

 

WAIVER AND AGREEMENT

 

This WAIVER AND AGREEMENT (“Agreement”),
dated as of November 16, 2009, is by and among PINNACLE GAS
RESOURCES, INC., a Delaware  corporation,
the Lenders from time to time party hereto, and THE ROYAL
BANK OF SCOTLAND plc, as Administrative Agent and as Lender.

 

WHEREAS, the Borrower, the
Lenders and the Administrative Agent are parties to that certain Credit
Agreement (as amended by that certain Letter Regarding Waiver and Amendment to
Credit Agreement dated March 9, 2007, the Second Amendment to Credit
Agreement dated as of August 4, 2008, the Third Amendment to Credit
Agreement dated as of September 30, 2008, the Fourth Amendment to Credit
Agreement dated as of April 14, 2009, the Fifth Amendment and Waiver to
Credit Agreement dated as of August 26, 2009 (the “Fifth Amendment”),
the Sixth Amendment to Credit Agreement dated as of October 20, 2009, and
as further amended and supplemented from time to time, the “Credit Agreement”);
and

 

WHEREAS, the parties hereto
desire to further extend certain waivers with respect to certain provisions of
the Credit Agreement and to make certain agreements as set forth herein;

 

NOW THEREFORE, in
consideration of the premises and the mutual covenants, representations and
warranties contained herein, and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto
hereby agree as follows:

 

AGREEMENT

 

Section 1.                                            Definitions. 
Capitalized terms used herein but not defined herein shall have the
meanings as given them in the Credit Agreement, unless the context otherwise
requires.

 

Section 2.                                            Waivers.

 

(a)                                  The Administrative Agent and the Lenders
hereby waive for the period ending on the earlier of November 23, 2009 and
the date of any Default or Event of Default arising out of any breach of or
non-compliance with the Credit Agreement not expressly waived hereunder (the “Waiver
Date”), the requirement in Section 7.15.2 of the Credit
Agreement that the Borrower not permit the ratio of its Current Assets to its
Current Liabilities to be less than 1.00 to 1.00 for the fiscal quarter ending June 30,
2009.  The waiver in this Section 2
is effective only for the period ending on the Waiver Date and only for the
fiscal quarter ending June 30, 2009, and not any other period or fiscal
quarter.

 

(b)                                 The Administrative Agent and the Lenders
hereby waive for the period ending on the Waiver Date the requirements of Section 7.6.2
of the Credit Agreement to the extent and only to the extent that (i) the
failure to pay accounts payable within ninety (90) days of the date of the
invoice therefor would cause such accounts not to be Permitted Debt and (ii) that
the aggregate amount of all such accounts payable not so paid within ninety
(90) days of the date of the invoice therefor does not exceed $6,000,000.  The waiver in this Section 2(b) is
effective only to the extent that such failure to pay accounts payable causes
such accounts 

 

 

payable not to be
Permitted Debt and only with respect to the period ending on the Waiver Date
and not any other period and only to the extent that the aggregate of all such
accounts payable not so paid within ninety (90) days of the date of the invoice
therefor does not exceed $6,000,000.

 

(c)                                  The Administrative Agent and the Lenders
hereby waive for the period ending on the Waiver Date the requirements of Section 7.6.3
of the Credit Agreement that the Borrower pay the trade and other accounts
payable within 90 days after the invoice date therefore, provided that this
waiver is only effective with respect to trade and other accounts not exceeding
$6,000,000 in the aggregate at any time outstanding.  The waiver in this Section 2(c) is
effective only with respect to (i) the period ending on the Waiver Date
and not any other period and (ii) trade and other accounts not exceeding
$6,000,000 in the aggregate at any time outstanding.

 

(d)                                 The Administrative Agent and the Lenders
hereby waive for the period ending on the Waiver Date the requirements of Section 7.7
of the Credit Agreement that the Borrower and its Subsidiaries not allow Liens
on any of its Property to the extent but only to the extent of Liens not
securing amounts in excess in the aggregate of $2,500,000.  The waiver in this Section 2(d) is
effective only with respect to (i) the period ending on the Waiver Date
and not any other period and (ii) only with respect to Liens not securing
amounts in excess in the aggregate of $2,500,000.

 

Section 3.                                            Modification of Certain Dates. 
The Borrower, Agent and Lenders agree that the references to “November 16,
2009”, in Section 4 of the Fifth Amendment, as amended by the Waiver and
Agreement dated October 26, 2009, shall be amended and restated to read “November 23,
2009”.  As amended by the preceding
sentence, the provisions of such Section 4 of the Fifth Amendment, as
heretofore amended, shall continue to be effective from and after the date of
this Agreement.

 

Section 4.                                            Agreement regarding Financial Advisor. 
The Borrower acknowledges and agrees that in connection with the waivers
granted herein, and in connection with such additional waivers and agreements
as the Borrower may anticipate requesting, the Administrative Agent and Lenders
may elect to engage the services of a financial consultant to assist in the
review of the financial condition and operations of the Borrower and any
request for a waiver, amendment or other action which the Borrower may
hereafter make in connection with the Credit Agreement.  In consideration of the waivers hereunder and
the Administrative Agent’s and Lenders’ consideration of any such request, the
Borrower agrees that notwithstanding any contrary provision of the Credit
Agreement, that the reasonable fees and expenses of any such financial advisor
incurred by the Administrative Agent and the Lenders shall be paid by the
Borrower on demand and shall constitute an amount payable under Section 9.4
of the Credit Agreement whether or not an Event of Default shall then exist or
have been waived.

 

Section 5.                                            Condition to Effectiveness. 
This Agreement shall be deemed effective as of November 16, 2009
(the “Effective Date”) when the Administrative Agent shall have received
counterparts hereof duly executed by the Borrower, the Administrative Agent,
and the Required Lenders.

 

2

 

Section 6.                                            Representations and Warranties. 
The Borrower hereby represents and warrants that after giving effect
hereto:

 

(a)                                  the representations and warranties of the
Borrower and each Subsidiary contained in the Loan Documents are true and
correct in all material respects on and as of the date hereof, other than those
representations and warranties that expressly relate solely to a specific
earlier date, which shall remain correct in all material respects as of such
earlier date;

 

(b)                                 the execution, delivery and performance
by the Borrower and each Subsidiary of this Agreement has been duly authorized
by all necessary corporate action required on their part and this Agreement,
along with the Credit Agreement as amended hereby and other Loan Documents,
constitutes the legal, valid and binding obligation of each Obligor party
thereto enforceable against them in accordance with its terms, except as its
enforceability may be affected by the effect of bankruptcy, insolvency,
reorganization, moratorium or other similar laws now or hereafter in effect
relating to or affecting the rights or remedies of creditors generally;

 

(c)                                  neither the execution, delivery and
performance of this Agreement by the Borrower and each Subsidiary, the
performance by them of the Credit Agreement nor the consummation of the
transactions contemplated hereby does or shall contravene, result in a breach
of, or violate (i) any provision of the Borrower or any Subsidiary’s
certificate or articles of incorporation or bylaws or other similar documents,
or agreements, (ii) any law or regulation, or any order or decree of any
court or government instrumentality, or (iii) any indenture, mortgage,
deed of trust, lease, agreement or other instrument to which the Borrower or
any of its Subsidiaries is a party or by which the Borrower or any of its
Subsidiaries or any of their property is bound, except in any such case to the
extent such conflict or breach has been waived herein or by a written waiver
document, a copy of which has been delivered to Administrative Agent on or
before the date hereof;

 

(d)                                 no Material Adverse Effect has occurred
and is continuing; and

 

(e)                                  no Default or Event of Default that the
Administrative Agent and the Lenders have not waived in writing or that has not
otherwise been disclosed to the Administrative Agent has occurred and is
continuing.

 

Section 7.                                            Ratification.

 

(a)                                  This Agreement is a Loan Document.  The Credit Agreement and all Obligations
thereunder or in connection therewith are hereby ratified, approved, and
confirmed in each and every respect.

 

(b)                                 The Borrower and each of its Subsidiaries
hereby ratifies, approves and confirms in every respect all the terms,
provisions, conditions and obligations of each of the Security Documents,
including without limitation all Mortgages, Pledge and Security Agreements, and
Guaranties, to which it is a party.

 

Section 8.                                            Costs and Expenses. 
As provided in Section 9.4 of the Credit Agreement, the
Borrower agrees to reimburse Administrative Agent for all fees, costs, and
expenses, 

 

3

 

including the reasonable
fees, costs, and expenses of counsel or other advisors for advice, assistance,
or other representation in connection with this Agreement.

 

Section 9.                                            GOVERNING LAW. THIS AGREEMENT HAS
BEEN NEGOTIATED, IS BEING EXECUTED AND DELIVERED, AND WILL BE PERFORMED IN
WHOLE OR IN PART, IN THE STATE OF NEW YORK, AND THE SUBSTANTIVE LAWS OF SUCH
STATE AND THE APPLICABLE FEDERAL LAWS OF THE UNITED STATES OF AMERICA SHALL GOVERN
THE VALIDITY, CONSTRUCTION, ENFORCEMENT AND INTERPRETATION OF THE LOAN
DOCUMENTS, EXCEPT TO THE EXTENT THE LAWS OF ANY JURISDICTION WHERE COLLATERAL
IS LOCATED REQUIRE APPLICATION OF SUCH LAWS WITH RESPECT TO SUCH COLLATERAL.

 

Section 10.                                      Severability. 
Any provision of this Agreement that is prohibited or unenforceable in
any jurisdiction shall, as to such provision and such jurisdiction, be
ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions of this Agreement or affecting the
validity or enforceability of such provision in any other jurisdiction.

 

Section 11.                                      Counterparts. 
This Agreement may be executed in any number of counterparts, all of
which taken together shall constitute one and the same instrument, and any
party hereto may execute this Agreement by signing one or more
counterparts.  Any signature hereto
delivered by a party by facsimile transmission shall be deemed to be an
original signature hereto.

 

Section 12.                                      No Waiver.  Except as
expressly set forth in this Agreement, the execution, delivery and
effectiveness of this Agreement shall not operate as a waiver of any default of
the Borrower or any other Obligor or any right, power or remedy of the
Administrative Agent or the other Secured Parties under any of the Loan
Documents, nor constitute a waiver of any provision of any of the Loan
Documents.

 

Section 13.                                      Successors and
Assigns.  This Agreement shall be binding upon the
Borrower and its successors and permitted assigns and shall inure, together
with all rights and remedies of each Lender hereunder, to the benefit of each
Lender and the respective successors, transferees and assigns.

 

Section 14.                                      Entire Agreement. 
THIS AGREEMENT, THE CREDIT AGREEMENT AND THE OTHER LOAN DOCUMENTS CONSTITUTE
THE ENTIRE AGREEMENT BETWEEN THE PARTIES HERETO WITH RESPECT TO THE SUBJECT
HEREOF AND SHALL SUPERSEDE ANY PRIOR AGREEMENT BETWEEN THE PARTIES HERETO,
WHETHER WRITTEN OR ORAL, RELATING TO THE SUBJECT HEREOF.  FURTHERMORE, IN THIS REGARD, THIS AGREEMENT
REPRESENTS THE FINAL AGREEMENT AMONG THE PARTIES THERETO AND MAY NOT BE
CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR SUBSEQUENT ORAL
AGREEMENTS OF SUCH PARTIES.

 

4

 

THERE ARE NO UNWRITTEN ORAL AGREEMENTS AMONG SUCH
PARTIES.

 

[Signature Pages Follow]

 

5

 

IN WITNESS WHEREOF, the
parties hereto have caused this Agreement to be duly executed and delivered by
their respective duly authorized officers as of the date hereof.

 

	
   

  	
  BORROWER:

  
	
   

  	
   

  
	
   

  	
  PINNACLE
  GAS RESOURCES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/Peter
  G. Schoonmaker

  
	
   

  	
  Name:

  	
  Peter
  G. Schoonmaker

  
	
   

  	
  Title:

  	
  Chief
  Executive Officer and President

  

 

6

 

	
   

  	
  ADMINISTRATIVE
  AGENT:

  
	
   

  	
   

  
	
   

  	
  THE
  ROYAL BANK OF SCOTLAND plc,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/Charles
  Greer

  
	
   

  	
  Name:

  	
  Charles
  Greer

  
	
   

  	
  Title:

  	
  Senior
  Vice President

  

 

7

 

	
   

  	
  LENDER:

  
	
   

  	
   

  
	
   

  	
  THE
  ROYAL BANK OF SCOTLAND plc,

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/Charles
  Greer

  
	
   

  	
  Name:

  	
  Charles
  Greer

  
	
   

  	
  Title:

  	
  Senior
  Vice President

  

 

8

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