Document:

exv10w13

Exhibit 10.13

THE TJX COMPANIES, INC.

LONG RANGE PERFORMANCE INCENTIVE PLAN

(As amended and restated effective as of March 5, 2010)

 

 

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
	 	 	2	 
	 
	 	 	 	 
	8. Payment
	 	 	4	 
	 
	 	 	 	 
	9. Transferability
	 	 	4	 
	 
	 	 	 	 
	10. Designation of Beneficiary
	 	 	4	 
	 
	 	 	 	 
	11. Change of Control; Mergers, etc.
	 	 	5	 
	 
	 	 	 	 
	12. Amendment and Modification
	 	 	6	 
	 
	 	 	 	 
	13. Withholding Taxes
	 	 	6	 
	 
	 	 	 	 
	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”). The effective date of this amendment and restatement of the Plan shall be March
5, 2010.
	 
	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”).

1

 

	 	 	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. No Participant (or beneficiary or estate of a Participant) shall be
entitled to an award under the Plan until the Committee has approved all of the terms of the
award applicable to such Participant for the Performance Cycle, including as set forth in
this Section 6, and then any such entitlement shall be only in accordance with such terms
and the Plan.
	 
	 	 	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 in accordance with Section 7(a). The Award
payment shall be paid in cash in accordance with Section 8.
	 
	7.	 	Determination of Awards

	 	(a)	 	Upon completion of each 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 (i) Awards to
Participants receiving “Needs Improvement” performance

2

 

	 	 	 	ratings, and (ii) awards otherwise payable to Participants who were on a leave of
absence for any portion of the applicable Performance Cycle.
	 
	 	(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, except
as follows (and subject to the last sentence of this Section 7):

	 	(i)	 	If, prior to the last day of the Performance Cycle, a
Participant’s employment terminates by reason of death, the beneficiary or
estate of the Participant (as determined under Section 10) shall be entitled to
a prorated Award under Section 7(c)(iv).
	 
	 	(ii)	 	If, prior to the last day of the Performance Cycle, a
Participant’s employment is terminated by the Company by reason of Disability,
the Participant (or, if the Participant is deceased, the beneficiary or estate
of a Participant, as determined under Section 10) shall be entitled to a
prorated Award under Section 7(c)(iv). “Disability” shall mean disability as
determined in accordance with the standards and procedures similar to those
used under the Company’s long term disability program, and subject to any
applicable legal or regulatory requirements in the relevant jurisdictions.
	 
	 	(iii)	 	If termination of employment occurs (A) by reason of normal
retirement under a retirement plan of the Company, (B) with the consent of the
Company, or (C) after the commencement of a Performance Cycle but before an
award was (or would have been) granted to the Participant for such Performance
Cycle, the Committee may, in its sole discretion, value and direct that all or
some portion of the Award that was (or would have been) granted to the
Participant for the Performance Cycle 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. Notwithstanding the foregoing, no participant will be deemed to
have a nonforfeitable right to payment of any prorated Award under this section
7(c)(iii) until the end of such Performance Cycle, and then only to the extent
provided under the terms of such Award.
	 
	 	(iv)	 	Unless otherwise provided by the Committee (including, without
limitation, pursuant to Section 7(a)), a prorated Award under subsections (i),
(ii), or (iii) of this Section 7(c) shall be the Participant’s target Award,

3

 

	 	 	 	if any, for each Performance Cycle that begins before and ends after the
date of termination, and multiplied by a fraction, the numerator of which is
the number of full months in such Cycle completed prior to such termination
and the denominator of which is the total number of full months in such
Cycle, and further reduced, as applicable, under Section 7(b). Any such
prorated Award shall be paid, if at all, in accordance with Section 8.
	 
	 	(v)	 	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.

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
	 
	 	 	As soon as practicable after the end of each Performance Cycle and the valuation of the
award for such Performance Cycle, but in no event later than two and one-half (2 1/2) months
after the later of the end of the calendar year or the fiscal year of the Company in which
such Performance Cycle ends, payment (including, for the avoidance of doubt, any prorated
payment made pursuant to Section 7 that is based on actual performance for a Performance
Cycle) shall be made in cash with respect to the award earned by each Participant for such
Performance Cycle; provided, that any prorated target Award under Section 7(c)(iv) shall be
paid at the same time other Awards are paid for the next completed Performance Cycle
following termination of employment (without regard to the Performance Cycle to which such
Award relates). Any such payment shall be subject to applicable withholding as set forth in
Section 13 below. Payments hereunder are intended to constitute short-term deferrals exempt
from Section 409A of the Internal Revenue Code of 1986, as amended, and the regulations
thereunder and shall be construed and administered accordingly.
	 
	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 human resources/benefits administrator in the relevant jurisdiction who has been
appointed by the Company to administer the provisions of this Section 10 for such
jurisdiction (the “applicable administrator”) a written designation of one or more

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	 	 	 	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
applicable administrator. The last such designation received by the applicable
administrator shall be controlling, provided, however, that no designation change or
revocation thereof shall be effective unless received by the applicable
administrator prior to the Participant’s death and in no event shall it be effective
as of a 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 applicable administrator
is in doubt as to the right of any person to receive any amount, the applicable
administrator may retain such amount, without liability for any interest thereon, until
the rights thereto are determined, or the applicable administrator 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 applicable administrator
therefor.

	 	 	All determinations necessary to construe or effectuate this Section 10 shall be made by the
Company.
	 
	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.

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	 	(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.
	 
	 	 	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.
	 
	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

6

 

	 	 	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 objectively determined by the Committee), (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
objectively determined by the Committee), 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).

7

 

     IN WITNESS WHEREOF, the Company has caused the Plan to be executed, effective as of
March 5, 2010.

ATTEST/WITNESS

	 	 	 	 	 	 	 	 	 

	/s/Julio C. Mantilla	 	 	 	THE TJX COMPANIES, INC	 	 
	 
	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	Print Name: Julio C. Mantilla

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Greg Flores	 	 
	 

	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	Print Name:	 	Greg Flores	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	Title:
	 	Executive Vice President, Chief Human Resources Officer	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	Date:
	 	May 26, 2010	 	 

8exv10w14

Exhibit 10.14

THE TJX COMPANIES, INC.

EXECUTIVE SAVINGS PLAN

(2010 Restatement)

 

 

TABLE OF CONTENTS

	 	 	 	 	 
	ARTICLE	 	PAGE
	PURPOSE; BACKGROUND
	 	 	1	 
	 
	 	 	 	 
	PART A: 409A PLAN

	 
	 	 	 	 
	ARTICLE 1. DEFINITIONS
	 	 	3	 
	1.1. “Account”
	 	 	3	 
	1.2. “Administrator”
	 	 	3	 
	1.3. “Basic Deferral Account”
	 	 	3	 
	1.4. “Bonus Deferral Account”
	 	 	3	 
	1.5. “Beneficiary”
	 	 	3	 
	1.6. “Change of Control”
	 	 	3	 
	1.7. “Company”
	 	 	3	 
	1.8. “Code”
	 	 	3	 
	1.9. “Designated Executive”
	 	 	3	 
	1.10. “Director”
	 	 	3	 
	1.11. “Disability”
	 	 	3	 
	1.12. “Effective Date”
	 	 	4	 
	1.13. “Elective Deferral”
	 	 	4	 
	1.14. “Eligible Basic Compensation”
	 	 	4	 
	1.15. “Eligible Bonus”
	 	 	4	 
	1.16. “Eligible Deferrals”
	 	 	4	 
	1.17. “Eligible Individual”
	 	 	5	 
	1.18. “Employee”
	 	 	5	 
	1.19. “Employer”
	 	 	5	 
	1.20. “Employer Credit Account”
	 	 	5	 
	1.21. “Employer Credits”
	 	 	5	 
	1.22. “Enhanced Matching Credits”
	 	 	5	 
	1.23. “ERISA”
	 	 	5	 
	1.24. “MIP (Corporate)”
	 	 	5	 
	1.25. “Participant”
	 	 	5	 

-i-

 

	 	 	 	 	 
	ARTICLE	 	PAGE
	1.26. “Period of Participation”
	 	 	5	 
	1.27. “Plan”
	 	 	6	 
	1.28. “Plan Year”
	 	 	6	 
	1.29. “Section 162(m)”
	 	 	6	 
	1.30. “Section 409A”
	 	 	6	 
	1.31. “Separation from Service”
	 	 	6	 
	1.32. “Specified Employee”
	 	 	6	 
	1.33. “Supplemental Employer Credits”
	 	 	6	 
	1.34. “Unforeseeable Emergency”
	 	 	6	 
	 
	 	 	 	 
	ARTICLE 2. ELIGIBILITY AND PARTICIPATION
	 	 	7	 
	2.1. Eligibility to Participate
	 	 	7	 
	2.2. Termination of Eligibility
	 	 	7	 
	 
	 	 	 	 
	ARTICLE 3. CREDITS
	 	 	8	 
	3.1. Timing and Form of Compensation Deferrals
	 	 	8	 
	3.2. Limit on Elective Deferrals
	 	 	9	 
	3.3. Employer Credits
	 	 	10	 
	3.4. Vesting of Employer Credit Accounts
	 	 	15	 
	 
	 	 	 	 
	ARTICLE 4. ADJUSTMENTS TO ACCOUNTS; DEEMED INVESTMENTS
	 	 	16	 
	4.1. Deemed Investment Experience
	 	 	16	 
	4.2. Distributions and Withdrawals
	 	 	16	 
	4.3. Notional Investment of Accounts
	 	 	16	 
	4.4. Expenses
	 	 	17	 
	 
	 	 	 	 
	ARTICLE 5. ENTITLEMENT TO AND TIMING OF DISTRIBUTIONS
	 	 	18	 
	5.1. Timing of Distributions as a result of Separation from Service, Death

	 	 	18	 
	5.2. Unforeseeable Emergency
	 	 	20	 
	 
	 	 	 	 
	ARTICLE 6. AMOUNT AND FORM OF DISTRIBUTIONS
	 	 	22	 
	6.1. Amount of Distributions
	 	 	22	 
	6.2. Form of Payment
	 	 	23	 
	6.3. Death Benefits
	 	 	24	 
	 
	 	 	 	 
	ARTICLE 7. BENEFICIARIES; PARTICIPANT DATA
	 	 	25	 
	7.1. Designation of Beneficiaries
	 	 	25	 

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	ARTICLE	 	PAGE
	7.2. Available Information; Missing Persons
	 	 	25	 
	 
	 	 	 	 
	ARTICLE 8. ADMINISTRATION
	 	 	26	 
	8.1. Administrative Authority
	 	 	26	 
	8.2. Litigation
	 	 	26	 
	8.3. Claims Procedure
	 	 	26	 
	 
	 	 	 	 
	ARTICLE 9. AMENDMENT
	 	 	27	 
	9.1. Right to Amend
	 	 	27	 
	9.2. Amendments to Ensure Proper Characterization of Plan
	 	 	27	 
	 
	 	 	 	 
	ARTICLE 10. TERMINATION
	 	 	28	 
	10.1. Right of the Company to Terminate or Suspend Plan
	 	 	28	 
	10.2. Allocation and Distribution
	 	 	28	 
	 
	 	 	 	 
	ARTICLE 11. MISCELLANEOUS
	 	 	29	 
	11.1. Limitation on Liability of Employer
	 	 	29	 
	11.2. Construction
	 	 	29	 
	11.3. Taxes
	 	 	29	 
	11.4. Section 409A Transition Relief
	 	 	30	 
	11.5. Spendthrift Provision
	 	 	30	 

Exhibit A — Definition of “Change of Control”

PART B: GRANDFATHERED PLAN

-iii-

 

THE TJX COMPANIES, INC.

EXECUTIVE SAVINGS PLAN

PURPOSE; BACKGROUND

     The TJX Companies, Inc. Executive Savings Plan (the “Plan”) is intended to provide a means
whereby eligible employees and directors may defer compensation that would otherwise be received on
a current basis and the Employer may credit certain additional amounts on a deferred basis for the
benefit of participating Employees. The Plan, as it applies to Employees, is intended to be an
unfunded “top-hat” plan under sections 201(2), 301(a)(3) and 401(a)(1) of ERISA. The Plan consists
of two parts: The TJX Companies, Inc. 409A Executive Savings Plan (the “409A Plan”) and The TJX
Companies, Inc. Executive Savings Plan as restated effective October 1, 1998 and as in effect on
October 3, 2004 (the “Grandfathered Plan”). The 409A Plan was previously restated effective as of
January 1, 2008, and is further amended, restated, and continued, effective as of January 1, 2010,
as provided herein.

     The 409A Plan is intended to comply with the requirements of Section 409A of the Internal
Revenue Code of 1986, as amended (the “Code”) and guidance issued thereunder and shall be
interpreted and administered in a manner consistent with such requirements. For the avoidance of
doubt, the terms of the 409A Plan shall apply to benefits accrued on or after January 1, 2005 and
benefits accrued but not vested as of December 31, 2004 under the Grandfathered Plan. The terms of
the 409A Plan are set forth as Part A below.

     All benefits accrued and vested as of December 31, 2004 and not materially modified after
October 3, 2004, plus notional earnings thereon (the “Grandfathered Benefit Amount”) shall be
grandfathered for purposes of Code Section 409A and shall be governed by The TJX Companies, Inc.
Executive Savings Plan as it was in effect on October 3, 2004. The Grandfathered Plan is frozen as
of December 31, 2004. No additional benefit shall accrue after December 31, 2004 under the
Grandfathered Plan (except, for the avoidance of doubt, the continued deferral of any previously
deferred Grandfathered Benefit Amounts) and no individual not a Participant as of December 31, 2004
shall thereafter become a Participant in the Grandfathered Plan. The Grandfathered Plan has not
been materially modified after October 3, 2004, and a copy of the Grandfathered Plan as it was in
effect immediately prior to the Effective

 

 

Date is attached as Part B. Part B memorializes the methodology for calculating, in
accordance with applicable provisions of the Grandfathered Plan, the Grandfathered Benefit Amount
credited to each Participant under the Grandfathered Plan.

-2-

 

PART A

THE TJX COMPANIES, INC. 409A EXECUTIVE SAVINGS PLAN

Article 1. Definitions

     1.1. “Account” means any or all, as the context requires, of a Participant’s or Beneficiary’s
Basic Deferral Account, Bonus Deferral Account and/or Employer Credit Account.

     1.2. “Administrator” means the Executive Compensation Committee of the Board of Directors of
the Company. The Executive Compensation Committee may delegate to one or more Employees, including
a committee, such powers and responsibilities hereunder as it deems appropriate, in which case the
term “Administrator” shall include the person or persons to whom such delegation has been made, in
each case during the continuation of and to the extent of such delegation.

     1.3. “Basic Deferral Account” means the unfunded book-entry account maintained by the
Administrator to reflect that portion of a Participant’s balance under the Plan which is
attributable to his or her Elective Deferrals attributable to deferred Eligible Basic Compensation.

     1.4. “Bonus Deferral Account” means the unfunded book-entry account maintained by the
Administrator to reflect that portion of a Participant’s balance under the Plan which is
attributable to his or her Elective Deferrals attributable to deferred Eligible Bonuses.

     1.5. “Beneficiary” means a Participant’s beneficiary determined in accordance with the
provisions of Article 7.

     1.6. “Change of Control” means a Change of Control as defined in Exhibit A hereto.

     1.7. “Company” means The TJX Companies, Inc.

     1.8. “Code” means the Internal Revenue Code of 1986 and the regulations thereunder, as amended
from time to time.

     1.9. “Designated Executive” means a Participant, of any age, who is a Senior Executive Vice
President of the Company or above, or any other Participant designated by the Administrator as a
“Designated Executive” hereunder from time to time.

     1.10. “Director” means a member of the Board of Directors of the Company.

     1.11. “Disability” means the inability to engage in any substantial gainful activity by reason
of any medically determinable physical or mental impairment that can be expected to

-3-

 

result in death or can be expected to last for a continuous period of not less than twelve
(12) months, all within the meaning of Section 409A.

     1.12. “Effective Date” means January 1, 2010.

     1.13. “Elective Deferral” is defined in Section 3.1.

     1.14. “Eligible Basic Compensation” means, with respect to any Plan Year: (i) the base salary
payable by the Employer to an Employee Participant during the Plan Year in respect of services
performed during the Plan Year, determined before reduction for deferrals under any qualified or
nonqualified plan (including, without limitation, the Plan); (ii) in the case of Directors, annual
retainers and/or meeting fees payable in the Plan Year in respect of services performed during the
Plan Year; and (iii) to the extent provided by the Administrator, other cash compensation payable
in the Plan Year in respect of services performed during the Plan Year.

     1.15. “Eligible Bonus” means a cash bonus payable on or after January 1, 2009 pursuant to one
or more of the Company’s annual and long-term incentive bonus plans, subject to such exceptions as
the Administrator may determine prior to the deadline for any Elective Deferral that might be
affected by such determination.

     1.16. “Eligible Deferrals” means (a) in the case of any Participant who is an Employee, who is
a Vice President or higher, Elective Deferrals attributable to Eligible Basic Compensation with
respect to a Plan Year not in excess of ten percent (10%) of the Participant’s Eligible Basic
Compensation, and (b) in the case of any Participant who is an Employee with a title of Assistant
Vice President or Buyer III, and any Participant who is an Employee with a title below Assistant
Vice President or Buyer III who previously held the title of Assistant Vice President or Buyer III
and has been selected by the Administrator (in its sole discretion) for eligibility for Employer
Credits under the Plan, Elective Deferrals attributable to Eligible Basic Compensation with respect
to a Plan Year not in excess of five percent (5%) of the Participant’s Eligible Basic Compensation.
Notwithstanding the preceding, in the case of any Participant who is a Director, any Participant
who is an Employee and who is eligible for Category A Key Employee Benefits or Category B Key
Employee Benefits under the Company’s Supplemental Executive Retirement Plan, as from time to time
in effect, and any Participant who is an Employee with a title below Assistant Vice President or
Buyer III who is eligible to participate in the Plan but not described in subclause (b) above, none
of the Elective Deferrals deferred under the Plan shall

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constitute Eligible Deferrals. For the avoidance of doubt, no Elective Deferral shall
constitute an Eligible Deferral to the extent it relates to remuneration other than Eligible Basic
Compensation.

     1.17. “Eligible Individual” means, for any Plan Year (or applicable portion thereof)
commencing on or after the Effective Date, an Employee or a Director who is determined by the
Administrator to be eligible to participate in the Plan consistent with the intended purpose of the
Plan as set forth in the “RECITALS” above.

     1.18. “Employee” means an employee of an Employer.

     1.19. “Employer” means The TJX Companies, Inc. and its subsidiaries.

     1.20. “Employer Credit Account” means the unfunded book-entry account maintained by the
Administrator to reflect that portion, if any, of a Participant’s balance under the Plan which is
attributable to Employer Credits allocable to the Participant.

     1.21. “Employer Credits” is defined in Section 3.3.

     1.22. “Enhanced Matching Credits” means those Employer Credits allocated to Participants under
subsections (a) and (b) of Sections 3.3, either (A) by reason of a Participant having a specified
title and having attained age 50 or above, or (B) by reason of a Participant being a Designated
Executive.

     1.23. “ERISA” means the Employee Retirement Income Security Act of 1974, as amended.

     1.24. “MIP (Corporate)” means (i) in the case of Participants other than those whose
compensation is expected to be subject to Section 162(m) (as determined by the Administrator)
(“Section 162(m) Employees”), the Management Incentive Plan award program for a fiscal year of the
Company as applied to Employees (other than Section 162(m) Employees) whose performance is
measured by corporate-level performance of the Company and its subsidiaries, and (ii) in the case
of Section 162(m) Employees, the Management Incentive Plan award program for a fiscal year of the
Company as applied to Section 162(m) Employees whose performance is measured by corporate-level
performance of the Company and its subsidiaries.

     1.25. “Participant” means any Eligible Individual who participates in the Plan.

     1.26. “Period of Participation” means, with respect to any Participant, the period commencing
with the commencement of participation in the Plan and ending on the earlier of (A) the date of a
Participant’s Separation from Service, or (B) the date on which the Participant’s Accounts have
been completely distributed, withdrawn or forfeited. For the avoidance of doubt,

-5-

 

“Period of Participation” will commence on the date that any amounts (including, for the
avoidance of doubt, any Supplemental Employer Credits) are first credited to the Account of a
Participant, and can include periods before or after the Effective Date.

     1.27. “Plan” means The TJX Companies, Inc. Executive Savings Plan as set forth herein and as
the same may be amended from time to time.

     1.28. “Plan Year” means the calendar year.

     1.29. “Section 162(m)” means Section 162(m) of the Code.

     1.30. “Section 409A” means Section 409A of the Code.

     1.31. “Separation from Service” and correlative terms mean a “separation from service” from
the Employer, determined in accordance with Treas. Regs. § 1.409A-1(h). The Administrator may, but
need not, elect in writing, subject to the applicable limitations under Section 409A, any of the
special elective rules prescribed in Treas. Regs. § 1.409A-1(h) for purposes of determining whether
a “separation from service” has occurred. Any such written election shall be deemed part of the
Plan.

     1.32. “Specified Employee” means an individual determined by the Administrator or its delegate
to be a specified employee as defined in Section 409A(a)(2)(B)(i). The Administrator may, but need
not, elect in writing, subject to the applicable limitations under Section 409A, any of the special
elective rules prescribed in Treas. Regs. § 1.409A-1(i) for purposes of determining “specified
employee” status. Any such written election shall be deemed part of the Plan.

     1.33. “Supplemental Employer Credits” is defined in Section 3.3(c).

     1.34. “Unforeseeable Emergency” shall mean an unforeseeable emergency as defined in Section
409A(a)(2)(B)(ii), including a severe financial hardship to the Participant resulting from an
illness or accident of the Participant, the Participant’s spouse, or a dependent (as defined in
Section 152(a) of the Code) of the Participant, loss of the Participant’s property due to casualty,
or other similar extraordinary and unforeseeable circumstances arising as a result of events beyond
the control of the Participant.

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Article 2. Eligibility and Participation

     2.1. Eligibility to Participate. Each Employee or Director who is an Eligible
Individual may participate in the Plan.

     2.2. Termination of Eligibility. An individual shall cease to be eligible to
participate in the Plan when he or she is no longer an Eligible Individual (whether by reason of a
Separation from Service or by reason of a change in job classification or otherwise) but shall
again become eligible to participate if he or she again becomes an Eligible Individual. No
termination of eligibility shall affect Elective Deferrals for which the applicable election
deadline has passed.

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Article 3. Credits

     3.1. Timing and Form of Compensation Deferrals.

     (a) In General. A Participant may elect to defer Eligible Basic Compensation
and Eligible Bonuses (any such deferral accomplished in accordance with this Section 3.1, an
“Elective Deferral”) by making a timely written election in accordance with this Section
3.1. Each such election shall become irrevocable not later than the applicable election
deadline. The applicable election deadline for a deferral election is such deadline as the
Administrator shall establish, which deadline shall in no event be later than (except as
provided at Section 3.1(b) below) the following:

     (i) with respect to Eligible Basic Compensation or Eligible Bonuses other than
those described in subsection (ii) below, the last day of the calendar year
preceding the calendar year in which any services relating to the deferred Eligible
Basic Compensation or deferred Eligible Bonuses, as the case may be, are to be
performed; and

     (ii) with respect to an Eligible Bonus, if in the Administrator’s judgment the
Eligible Bonus will qualify under Section 409A as “performance-based compensation”
that has not yet become readily ascertainable, the date that is six (6) months
before the end of the performance period, but only if the Participant has been in
continuous employment with the Employer since the later of the beginning of the
performance period or the date the performance criteria are established.

In order to participate in the Plan for any Plan Year, an Eligible Individual must make an
affirmative written election pursuant to this Section 3.1(a) (or Section 3.1(b), if
applicable) in respect of such Plan Year by the applicable election deadline for such Plan
Year; provided, however, that the Administrator may permit an Eligible Individual or
Eligible Individuals to make an affirmative election in writing that remains in effect for
such Plan Year and future Plan Years, unless changed or revoked prior to the applicable
election deadline for the relevant Plan Year, in accordance with such rules and procedures
as the Administrator may establish from time to time and consistent, in the Administrator’s
judgment, with the requirements of Section 409A.

-8-

 

     (b) Special Election for Certain Newly Eligible Individuals. Notwithstanding
Section 3.1(a) above, an individual who first becomes an Eligible Individual after the
beginning of a calendar year by reason of (i) the commencement of employment by the Company,
(ii) the promotion to a position, or a designation by the Administrator, that results in the
individual becoming an Eligible Individual or (iii) an election or appointment to the Board
of Directors, may, if permitted by the Administrator, become a Participant for the remainder
of such calendar year by executing an irrevocable deferral election (on a form prescribed by
the Administrator) with respect to his or her Eligible Basic Compensation and Eligible
Bonuses in respect of services to be performed following such election, provided that such
election is submitted to the Administrator within thirty (30) days of the date that he or
she becomes an Eligible Individual. The amount that a Participant may defer under this
Section 3.1(b) with respect to Eligible Bonuses based on a specified performance period may
not exceed an amount equal to the total amount of the Eligible Bonuses for the applicable
performance period multiplied by the ratio of the number of days remaining in the
performance period after the effective date of the election over the total number of days in
the performance period applicable to the Eligible Bonuses. An individual who already
participates or is eligible to participate in (including, except to the extent otherwise
provided in Section 1.409A-2(a)(7) of the Treasury Regulations, an individual who has any
entitlement, vested or unvested, to payments under) any other nonqualified deferred
compensation plan that would be required to be aggregated with the Plan for purposes of
Section 1.409A-1(c)(2) of the Treasury Regulations shall not be treated as eligible for the
mid-year election rules of this Section 3.1(b) with respect to the Plan, even if he or she
had never previously been eligible to participate in the Plan itself. For the avoidance of
doubt, nothing in this Section 3.1(b) shall limit the availability of an election under
Section 3.1(a) to the extent consistent with the requirements of Section 409A.

     3.2. Limit on Elective Deferrals. With respect to an Employee, no more than twenty
percent (20%) of a Participant’s Eligible Basic Compensation for any pay period may be deferred
pursuant to an election under Section 3.1. A Director who participates in the Plan may elect to
defer up to one hundred percent (100%) of his or her Eligible Basic Compensation. Subject to

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the foregoing, a Participant’s deferral election in respect of Eligible Basic Compensation may
specify different deferral percentages for different pay periods. Up to one hundred percent (100%)
of a Participant’s Eligible Bonuses may be deferred pursuant to an election under Section 3.1. The
Administrator shall establish and maintain a Basic Deferral Account and Bonus Deferral Account in
the name of each Participant to which shall be credited amounts equal to the Participant’s Elective
Deferrals attributable to deferred Eligible Basic Compensation and deferred Eligible Bonuses,
respectively, and which shall be further adjusted as provided in Article 4 to reflect any
withdrawals or distributions and any deemed earnings, losses or other charges allocable to such
Account. Elective Deferrals shall be credited to a Participant’s Compensation Deferral Account or
Bonus Deferral Account as soon as practicable following the date the related Eligible Basic
Compensation or Eligible Bonuses, as the case may be, would have been payable absent deferral. A
Participant shall at all times be 100% vested in his or her Basic Deferral Account and Bonus
Deferral Account, subject to adjustment pursuant to Article 4.

     3.3. Employer Credits. The Administrator shall establish and maintain a separate
Employer Credit Account in the name of each Participant to which shall be credited amounts equal to
the employer credits, if any, allocable to the Participant (any such amounts credited in accordance
with this Section 3.3, “Employer Credits”) and which shall be further adjusted as provided in
Article 4 to reflect any withdrawals, distributions or forfeitures and any deemed earnings, losses
or other charges allocable to the Employer Credit Account. The Employer Credits allocable to a
Participant shall be determined as follows:

     (a) Non-Performance-Based Employer Credits. For each Plan Year, for each
Participant (i) who is an Assistant Vice President, Buyer III or Vice President, (ii) who is
a Senior Vice President or above under age fifty (50), or (iii) who is not eligible for the
Enhanced Matching Credits described in the next sentence, the Administrator shall credit to
the Participant’s Employer Credit Account an amount equal to ten percent (10%) of the
Participant’s Eligible Deferrals for the Plan Year. In lieu of the credits set forth in the
preceding sentence and subject to the following sentence, for each Plan Year, for each
Participant who is: (i) a Senior Vice President or above, and age fifty (50) or older, or
(ii) a Designated Executive, the Administrator shall credit to the Participant’s Employer
Credit Account an Enhanced Matching Credit equal to the following percentage of the

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Participant’s Eligible Deferrals for the Plan Year, based on the Participant’s title
and age (or, if applicable, status as a Designated Executive) as of the effective time of
such credit:

	 	 	 	 	 
	Category	 	Percentage of Eligible Deferrals
	Designated Executive
	 	 	100	%
	Division President (age 50 or older)
(other than a Designated Executive)
	 	 	25	%
	Executive Vice President (age 50 or
older) (other than a Designated
Executive)
	 	 	20	%
	Senior Vice President (age 50 or older)
(other than a Designated Executive)
	 	 	15	%

The maximum number of Plan Years in respect of which any Participant shall be entitled to
the Enhanced Matching Credits set forth in the immediately preceding sentence shall be
fifteen (15). For each Plan Year after the fifteenth Plan Year for which any Participant
has received such Enhanced Matching Credits, the Administrator shall credit to the
Participant’s Employer Credit Account an amount equal to ten percent (10%) of the
Participant’s Eligible Deferrals for the Plan Year. The non-performance-based matching
credits described in this subsection (a) shall be credited to the Participant’s Employer
Credit Account as of the same dates as the Eligible Deferrals to which such matching credits
relate and based on the age and title or status as a Designated Executive (to the extent
applicable) of the Participant as of such date; provided, however, that any Employer Credits
to which a Participant, by reason of being a Designated Executive, is entitled under this
subsection (a) with respect to Eligible Deferrals credited to such Participant’s Account on
or after the Effective Date and prior to April 30, 2010 shall be credited (without interest)
as of April 30, 2010.

     (b) Performance-Based Employer Credits at 90% or Greater Payout of MIP (Corporate)
Awards.

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     (i) In General. For each Plan Year ending within a fiscal year of the
Company for which MIP (Corporate) performance produces a payout at or above 90% of
MIP (Corporate) target award opportunities as determined by the Administrator, the
Administrator shall credit to the Employer Credit Account of each eligible
Participant with a title of Assistant Vice President or Buyer III or above an amount
(in addition to the credit described at Section 3.3(a) above) equal to the following
percentage of the Participant’s Eligible Deferrals for the Plan Year, in each case
based (to the extent applicable) on the age and title of the Participant, or status
as a Designated Executive, as of the date the Eligible Deferrals to which such
matching credits relate were credited pursuant to Section 3.2 above:

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	Percentage of Eligible Deferrals
	 	 	 	 	(based on the percentage payout of MIP
	 	 	 	 	(Corporate) target award opportunities)
	 	 	 	 	90% Payout	 	100% Payout	 	125% Payout
	 	 	 	 	for MIP	 	for MIP	 	for MIP
	 	 	 	 	(Corporate)	 	(Corporate)	 	(Corporate)
	Category	 	Age	 	awards	 	awards	 	awards
	Designated Executive
	 	N/A	 	 	50	%	 	 	100	%	 	 	150	%
	Division President (other than a
Designated
Executive)
	 	50 or older	 	 	25	%	 	 	50	%	 	 	75	%
	 	Under 50	 	 	7.5	%	 	 	15	%	 	 	30	%
	Executive Vice President (other
than a Designated
Executive)
	 	50 or older	 	 	15	%	 	 	30	%	 	 	50	%
	 	Under 50	 	 	7.5	%	 	 	15	%	 	 	30	%
	Senior Vice President (other
than a Designated
Executive)
	 	50 or older	 	 	12.5	%	 	 	25	%	 	 	40	%
	 	Under 50	 	 	7.5	%	 	 	15	%	 	 	30	%
	Vice President (other than a
Designated
Executive)
	 	50 or older	 	 	10	%	 	 	20	%	 	 	35	%
	 	Under 50	 	 	7.5	%	 	 	15	%	 	 	30	%
	Assistant Vice President or Buyer
III (other than a
Designated
Executive)
	 	50 or older	 	 	7.5	%	 	 	15	%	 	 	20	%
	 	Under 50	 	 	7.5	%	 	 	15	%	 	 	15	%

The maximum number of Plan Years in respect of which any Participant shall be
entitled to an Enhanced Matching Credit pursuant to the immediately preceding

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sentence shall be fifteen (15). For each Plan Year after the fifteenth Plan Year
for
which any Participant has received such Enhanced Matching Credits, the Administrator
shall credit to the Participant’s Employer Credit Account an amount equal to the
percentage of the Participant’s Eligible Deferrals for the Plan Year indicated in
the table above for a Participant with the same title as such individual (or, in the
case of a Designated Executive with the title of Senior Executive Vice President or
higher, the title of Division President) and an age under 50.

     (ii) Pro-ration. If MIP (Corporate) performance produces a payout
between ninety percent (90%) and one hundred percent (100%) of MIP (Corporate)
target award opportunities, the Employer Credit described in this Section 3.2(b)
shall be an amount equal to: (A) the percentage of the Participant’s Eligible
Deferrals specified in the table under subsection (i) above for a ninety percent
(90%) payout of MIP (Corporate) awards; plus (B) an additional amount equal to the
Participant’s Eligible Deferrals, multiplied by the product of (1) the
percentage-point excess of the percentage specified in such table above for a one
hundred percent (100%) payout of MIP (Corporate) awards over the percentage
specified for a ninety percent (90%) payout of MIP (Corporate) awards, (2) the
percentage-point excess of the actual payout percentage of MIP (Corporate) target
award opportunities over ninety percent (90%), and (3) ten (10). For example, if
MIP (Corporate) performance is such to produce payouts equal to ninety-five percent
(95%) of the MIP (Corporate) target award opportunities, the performance-based
Employer Credit described in this Section 3.3(b) for a Participant under age fifty
(50) (other than Designated Executives) shall be equal to the Participant’s Eligible
Deferrals multiplied by 11.25% (7.5%, plus 3.75% (7.5% (15% less 7.5%), multiplied
by 5% (95% less 90%), multiplied by 10)).

     If MIP (Corporate) performance produces a payout between one hundred percent
(100%) and one hundred twenty-five percent (125%) of MIP (Corporate) target award
opportunities, the Employer Credit described in this Section 3.2(b) shall be an
amount equal to: (A) the percentage of the Participant’s Eligible Deferrals
specified in the table under subsection (i) above for a one hundred percent (100%)
payout of MIP (Corporate) awards; plus (B) an additional amount

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equal to the
Participant’s Eligible Deferrals, multiplied by the product of (1) the
percentage-point excess of the percentage specified in such table above for a
one hundred twenty-five percent (125%) payout of MIP (Corporate) awards over the
percentage specified for a one hundred percent (100%) payout of MIP (Corporate)
awards, (2) the percentage-point excess of the actual payout percentage of MIP
(Corporate) target award opportunities over one hundred percent (100%), and (3) four
(4). For example, if MIP (Corporate) performance is such to produce payouts equal
to one hundred twenty percent (120%) of the MIP (Corporate) target award
opportunities, the performance-based Employer credit described in this Section
3.3(b) for a Participant under age fifty (50) with a title of Vice President or
above (other than Designated Executives) shall be equal to the Participant’s
Eligible Deferrals multiplied by 27% (15%, plus 12% (15% (30% less 15%) multiplied
by 20% (120% less 100%), multiplied by 4)).

     (iii) Timing of Performance-Based Employer Credits. The
performance-based Employer Credit described in this Section 3.3(b) shall be credited
as soon as practicable following the close of the fiscal year and only to the
Employer Credit Accounts of those Participants who were employed by the Employer on
the last day of such fiscal year.

     (c) Supplemental Employer Credits. The Administrator may credit such
additional amounts (whether or not such amounts are described as a percentage of Eligible
Deferrals or are otherwise related to any Elective Deferrals under the Plan) to the Employer
Credit Account of any Participant as the Administrator may determine in its sole discretion
from time to time, and on such terms and conditions as the Administrator may specify from
time to time (any such Employer Credits under this Section 3.3(c), “Supplemental Employer
Credits”) . Except as provided by the Administrator, any Supplemental Employer Credits
shall be subject to the same vesting and payment terms and conditions that apply to all
other Employer Credits allocated to Participants under the Plan. Any alternative vesting or
payment terms shall be established by the Administrator at the time such Supplemental
Employer Credits are allocated to a Participant, to the extent required by Section 409A.

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     3.4. Vesting of Employer Credit Accounts. A Participant shall become vested in the
balance of his or her Employer Credit Account, subject to adjustment pursuant to Article 4, in
accordance with the following vesting schedule:

	 	 	 	 	 
	Completed Period of Participation	 	Vested Percentage
	Fewer than five years
	 	 	0	%
	Five years or more,
but fewer than ten years
	 	 	50	%
	Ten or more years
	 	 	100	%

     Notwithstanding the foregoing, if a Participant who is 50% but not 100% vested in his or her
Employer Credit Account takes an in-service withdrawal under Section 5.2, the Participant’s vested
interest in his or her Employer Credit Account as of any subsequent date prior to full vesting (the
“determination date”) shall be

1/2(AB+W) - W

     where “AB” is the balance of the Employer Credit Account as of the determination date and “W”
is that portion of the withdrawal (or withdrawals, if more than one) under Section 5.2 that was
attributable to the Employer Credit Account.

     In addition, a Participant will become immediately vested in his or her Employer Credit
Account, subject to adjustment pursuant to Article 4, upon attainment by the Participant of age
fifty-five (55), upon Separation from Service by reason of Disability or death, or upon the earlier
occurrence of a Change of Control. For purposes of this Section 3.4 and for all other purposes
under the Plan, a Participant shall be deemed to have Separated from Service by reason of
Disability upon the earlier of the Participant’s termination of employment or the expiration of the
twenty-nine (29)-month period commencing upon such Participant’s absence from work.

     Any vesting terms and conditions established by the Administrator with respect to any
Supplemental Employer Credits that are different from, supplement, or otherwise modify those set
forth in this Section 3.4 shall apply in lieu of the provisions of this Section 3.4 to the extent
that any portion of the Participant’s Employer Credit Account is attributable to such Supplemental
Employer Credits.

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Article 4. Adjustments to Accounts; Deemed Investments

     4.1. Deemed Investment Experience. Each Account shall be adjusted on such periodic
basis and subject to such rules as the Administrator may prescribe to reflect the investment
performance of the notional investments in which the Account is deemed invested pursuant to Section
4.3, including without limitation any interest, dividends or other distributions deemed to have
been received with respect to such notional investments.

     4.2. Distributions and Withdrawals. As of the date of any distribution or withdrawal
hereunder, the Administrator shall reduce the affected Participant’s Accounts to reflect such
distribution or withdrawal. Any such adjustment shall reduce ratably each affected Account’s share
of each of the notional investments in which the Account is deemed to be invested, except as the
Administrator may otherwise determine.

     4.3. Notional Investment of Accounts. The Administrator shall from time to time
specify one or more mutual funds or other investment alternatives that shall be available as
measures of notional investment return for Accounts under the Plan (each such specified
alternative, a “measuring investment option”). Subject to such rules and limitations as the
Administrator may from time to time prescribe, each Participant shall have the right to have the
balance of his or her Accounts treated for all purposes of the Plan as having been notionally
invested in one or more measuring investment options and to change the notional investment of his
or her Accounts from time to time. The Administrator shall have complete discretion at any time
and from time to time to eliminate or add a measuring investment option. The Administrator may
designate one or more measuring investment options as the default in which a Participant’s Accounts
shall be deemed to be invested to the extent the Participant does not affirmatively, timely and
properly provide other notional investment directions.

     Nothing in this Section 4.3 shall be construed as giving any Participant the right to cause
the Administrator, the Employer or any other person to acquire or dispose of any investment, to set
aside (in trust or otherwise) money or property to meet the Employer’s obligations under the Plan,
or in any other way to fund the Employer’s obligations under the Plan. The sole function of the
notional investment provisions of this Section 4.3 is to provide a computational mechanism for
measuring the Employer’s unfunded contractual deferred compensation

-16-

 

obligation to Participants. Consistent with the foregoing, the Employer may (although it
shall not be obligated to do any of the following): (i) establish and fund a so-called “rabbi”
trust or similar trust or account to hold and invest amounts to help the Employer meet its
obligations under the Plan; and (ii) if it establishes and funds such a trust or account, cause the
trustee or other person holding the assets in such trust or account to invest them in a manner that
is consistent with the notional investment directions of Participants under the Plan.

     Each reference in this Section 4.3 to a Participant shall be deemed to include, where
applicable, a reference to a Beneficiary.

     4.4. Expenses. All expenses associated with the Plan shall be paid by the Employer;
but if a trust or account is established as described at Section 4.3 above, the Employer may
provide that expenses associated with that trust or account shall be paid out of the assets held
therein.

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Article 5. Entitlement to and Timing of Distributions

     5.1. Timing of Distributions as a result of Separation from Service, Death.

     (a) Basic Deferral Account and Bonus Deferral Account. A Participant’s Basic
Deferral Account and Bonus Deferral Account will be distributed, in the form and amount
specified in Article 6, upon the earlier to occur of (i) the date specified by the
Participant pursuant to a distribution election made under this Section 5.1, or (ii) the
Participant’s Separation from Service for any reason. When the Participant makes a deferral
election in respect of Eligible Basic Compensation for a Plan Year beginning on or after
January 1, 2008 or Eligible Bonuses payable on or after January 1, 2009 under Sections 3.1
and 3.2, he or she shall also elect the time at which payment of the amounts credited to the
Basic Deferral Account and Bonus Deferral Account, respectively, established in respect of
such Plan Year shall commence. The earliest time a Participant may elect to have payment
commence in respect of any such amounts credited to the Participant’s Basic Deferral Account
or Bonus Deferral Account shall be January 1st of the second calendar year commencing after
the date such amounts were credited to such Accounts. A Participant may subsequently elect
to change his or her prior election of the date of commencement of payments from his or her
Basic Deferral Account or Bonus Deferral Account, as the case may be, but only if such
change (i) shall not take effect for at least twelve (12) months after the date on which the
subsequent election is made; (ii) is made at least twelve (12) months prior to the date on
which the first payment was scheduled to be made (“prior election payment date”); and (iii)
results in a new payment date that is delayed by at least five (5) years, as measured from
the prior election payment date. Any such change of the time of commencement of payment
shall be made in the manner specified by the Administrator. In the absence of a timely and
proper election as to the time of distribution pursuant to this Section 5.1(a) on a form
acceptable to the Administrator, the Participant shall be deemed to have elected
distribution under this Section 5.1(a) upon Separation from Service. Distribution of the
Participant’s Basic Deferral Account and Bonus Deferral Account shall be made (or commence,
if installments have been properly elected under Section 6.2(b)(ii) below) upon the date
specified, or deemed to have been specified, in this Section 5.1(a), subject to subsections

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(c) and (d) of this Section 5.1. With respect to amounts credited to a Participant’s
Basic Deferral Account for Plan Years commencing on or after January 1, 2005 and before
January 1, 2008, the Administrator may, in its sole discretion, provide an opportunity to
elect distribution upon a date specified by the Participant, to the extent that such date
occurs prior to the Participant’s Separation from Service, pursuant to an election permitted
under applicable transition relief rules promulgated by the Internal Revenue Service under
Section 409A of the Code. Any such election shall be made, if at all, by the deadline and
on the form prescribed by the Administrator.

     (b) Employer Credit Account. A Participant’s vested Employer Credit Account
will be valued and paid in accordance with the provisions of Article 6 upon the earliest to
occur of (i) the Participant’s death, (ii) the Participant’s Separation from Service by
reason of Disability (as determined under Section 3.4), or (iii) the later of (A) the
Participant’s Separation from Service for any reason, and (B) the Participant’s attainment
of age 55; provided, that if the Participant’s Separation from Service is for cause (as
determined by the Administrator), no portion of the Participant’s Employer Credit Account
shall be paid and the entirety of the Employer Credit Account shall instead be immediately
forfeited; and further provided, that a current or former Designated Executive’s right to
receive and/or retain any portion of his or her Employer Credit Account attributable to the
additional Employer Credits earned by reason of his or her status as a Designated Executive
(such portion, the “Restricted Portion”) is conditioned on the Participant’s full and
continued compliance with any applicable confidentiality, noncompetition, or nonsoliciation
agreement, or any similar or related agreement, with the Employer, and upon any breach or
threatened breach of any covenant contained in such agreements, in addition to the remedies
set forth in such agreement, the Company shall have the right to immediately cease making
any payment with respect to the Restricted Portion and shall have the right to require a
Participant who has so breached or threatened to breach such covenant or agreement to repay
the Company, with interest at the prime rate in effect at Bank of America, or its successor,
any amount or amounts previously paid with respect to the Restricted Portion. Distribution
of the Participant’s vested Employer Credit Account in accordance with the previous sentence
shall be made (or commence, if installments have been properly elected under Section

-19-

 

6.2(b)(ii) below) upon the date specified in Section 5.1(b), subject to subsections (c)
and (d) of this Section 5.1.

     (c) Notwithstanding any provision of this Section 5.1 or any other provision of the
Plan to the contrary, in the case of a Participant who is an individual determined by the
Administrator or its delegate to be a Specified Employee, payment of such Participant’s
benefit as a result of a Separation from Service (other than by reason of death) shall not
commence until the date which is six (6) months and one (1) day after the date of such
Separation from Service or, if earlier than the end of such period, the date of death of
such Participant.

     (d) Notwithstanding any provision of this Section 5.1 or any other provision of the
Plan to the contrary, the Company may delay distributions to any Participant under the Plan
to the extent permitted under Treas. Regs. §1.409A-2(b)(7)(i) to the extent that the Company
reasonably anticipates that if the distribution were made at the time specified in Section
5.1(a) above, the Company’s deduction with respect to such distribution would not be
permitted due to the application of Section 162(m), provided that the distribution is made
either during the Participant’s first taxable year in which the Company reasonably
anticipates, or should reasonably anticipate, that if the payment is made during such year,
the deduction of such payment will not be barred by application of Section 162(m) or during
the period beginning with the date of the Participant’s Separation from Service (or such
later date as required under Treas. Regs. §1.409A-2(b)(7)(i)) and ending on the later of the
last day of the taxable year of the Company in which such date occurs or the 15th day of the
third month following such date. For the avoidance of doubt, the Participant shall have no
election with respect to the timing of the payment under this paragraph.

     5.2. Unforeseeable Emergency. In the event of an Unforeseeable Emergency, the
Participant may apply to the Administrator for the distribution of all or any part of his or her
vested Account. The Administrator shall consider the circumstances of each case and shall have the
right, in its sole discretion, subject to compliance with Section 409A, to allow or disallow the
application in whole or in part. The Administrator shall have the right to require such
Participant to submit such documentation as it deems appropriate for the purpose of determining the
existence of an Unforeseeable Emergency, the amount reasonably necessary to satisfy the

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emergency need, and other related matters. Distributions under this Section 5.2 in connection
with the occurrence of an Unforeseeable Emergency shall be made as soon as practicable after the
Administrator’s determination under this Section 5.2, which shall be made in accordance with the
rules of Section 1.409A-3(i)(3) of the Treasury Regulations.

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Article 6. Amount and Form of Distributions

     6.1. Amount of Distributions.

     (a) Basic Deferral Account. The amount distributable to the Participant under
Section 5.1(a) in respect of his or her Basic Deferral Account shall be the balance of the
Participant’s Basic Deferral Account determined as of the date of distribution, unless a
timely installment election has been submitted pursuant to Section 6.2 below in which case
the amount of each installment shall be calculated in accordance with Section 6.2 below.

     (b) Bonus Deferral Account. The amount distributable to the Participant under
Section 5.1(a) in respect of his or her Bonus Deferral Account shall be the balance of the
Participant’s Bonus Deferral Account determined as of the date of distribution, unless a
timely installment election has been submitted pursuant to Section 6.2 below in which case
the amount of each installment shall be calculated in accordance with Section 6.2 below.

     (c) Employer Credit Account. The amount distributable to the Participant under
Section 5.1(b) in respect of his or her Employer Credit Account shall be the balance of the
Participant’s Employer Credit Account determined as of the date of distribution, unless a
timely installment election has been submitted pursuant to Section 6.2 below in which case
the amount of each installment shall be calculated in accordance with Section 6.2 below.

     (d) Distributions upon Unforeseeable Emergency. The amount of a distribution
to the Participant under Section 5.2 shall be determined by the Administrator, provided that
in no event shall the aggregate amount of any distribution under Section 5.2 exceed the
lesser of the vested portion of the Participant’s Account or the amount determined by the
Administrator to be necessary to alleviate the Participant’s Unforeseeable Emergency
(including any taxes or penalties reasonably anticipated to result from the distribution)
and which is not reasonably available from other resources of the Participant. A withdrawal
under Section 5.2 shall be allocated between the Participant’s Basic Deferral Account, Bonus
Deferral Account and the vested portion of

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the Participant’s Employer Credit Account pro rata based on the balance credited to the
vested portion of each such Account immediately prior to the hardship distribution.

     6.2. Form of Payment.

     (a) Cash Payment. All payments under the Plan shall be made in cash.

     (b) Lump sums; installments.

     (i) Except as provided at (ii) immediately below, all distributions under the
Plan shall be made in the form of a lump sum payment.

     
(ii) A Participant who Separates from Service (other than by reason of death or
for cause (as determined by the Administrator)) upon or after attaining age 55 may
elect, in accordance with this Section 6.2(b)(ii), to have amounts distributable
under Section 6.1 paid either as a lump sum or in annual installments over a period
of not more than ten years. In the absence of a proper advance election to have
such amounts paid in installments, amounts distributable under Section 6.1 shall be
paid as a lump sum. With respect to amounts deferred for any Plan Year beginning on
or after January 1, 2005 and prior to January 1, 2009, any election by a Participant
to have amounts distributable under Section 6.1 paid in installments (an
“installment election”) must be delivered to the Administrator, in a form acceptable
to the Administrator, not later than the earlier of the date prescribed by the
Administrator or the latest date permissible under transition relief promulgated by
the Internal Revenue Service under Section 409A. With respect to amounts deferred
for any Plan Year beginning on or after January 1, 2009, any election by a
Participant to have amounts distributable under Section 6.1 paid in installments (an
“installment election”) must be delivered to the Administrator, in a form acceptable
to the Administrator, not later than the “applicable election deadline” for such
Plan Year (as defined in Section 3.1). A Participant may subsequently elect to
change his or her prior election to have amounts distributable under Section 6.1
paid in a lump sum or in annual installments, as the case may be, but only if such
change (i) shall not take effect for at least twelve (12) months after the date on
which the subsequent election is made; (ii) is made at least twelve (12) months
prior to the date on which the first payment was scheduled to be made (“prior
election payment date”); and (iii)

-23-

 

results in a new payment date that is delayed by at least five (5) years, as
measured from the prior election payment date. Any such change of the time of
commencement of payment shall be made in the manner specified by the Administrator.

     (iii) Where an Account is payable in installments, the amount of each
installment shall be determined by dividing the vested portion of the Account (as
adjusted through the date of such installment distribution) by the number of
installments remaining to be paid. The Administrator may, in its sole discretion,
require that, at the time payment of a Participant’s Account for which an
installment election is made is scheduled to commence under Article 5, the total
balance in all such Participant’s Accounts must exceed, together with any other
amounts payable to a Participant pursuant to any other nonqualified deferred
compensation plan of the Company (and all other all other corporations and trades or
businesses, if any, that would be treated as a single “service recipient” with the
Company under Treas. Regs. § 1.409A-1(h)(3)) that is an account balance plan
described in Treas. Regs. § 1.409A-1(c)(2)(i)(A) or § 1.409A-1(c)(2)(i)(B), the
dollar amount in effect under Code section 402(g)(1)(B). For the avoidance of
doubt, any installments payable hereunder shall be treated as a single payment
pursuant to Treas. Regs. § 1.409A-2(b)(2)(iii).

     (c) Employer’s Obligation. All payments under the Plan not made from a trust
or account described in Section 4.3 above shall be made by the Employer.

     6.3. Death Benefits. Notwithstanding any other provision of the Plan, if a
Participant dies before distribution of his or her Account has occurred or (if payable in
installments) has been completed, the entire value of the Participant’s vested Account shall be
paid, as soon as practicable following the Participant’s death, in a lump sum to the Participant’s
Beneficiary or Beneficiaries.

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Article 7. Beneficiaries; Participant Data

     7.1. Designation of Beneficiaries. Subject to such rules and limitations as the
Administrator may prescribe, each Participant from time to time may designate one or more persons
(including a trust) to receive benefits payable with respect to the Participant under the Plan upon
or after the Participant’s death, and may change such designation at any time. Each designation
will revoke all prior designations by the same Participant, shall be in a form prescribed by the
Administrator, and will be effective only when filed in writing with the Administrator during the
Participant’s lifetime.

     In the absence of a valid Beneficiary designation, or if, at the time any benefit payment is
due to a Beneficiary there is no living Beneficiary validly named by the Participant, the
Administrator shall cause such benefit to be paid to the Participant’s estate. In determining the
existence or identity of anyone entitled to a benefit payment, the Administrator may rely
conclusively upon information supplied by the Participant’s personal representative, executor or
administrator.

     7.2. Available Information; Missing Persons. Any communication, statement or notice
addressed to a Participant or to a Beneficiary at his or her last post office address as shown on
the Administrator’s records shall be binding on the Participant or Beneficiary for all purposes of
the Plan. A benefit shall be deemed forfeited if, after diligent effort, the Administrator is
unable to locate the Participant or Beneficiary to whom payment is due; provided, however, that the
Administrator shall have the authority (but not the obligation) to reinstate such benefit upon the
later discovery of a proper payee for such benefit, but solely to the extent permitted under
Section 409A. Mailing of a notice in writing, by certified or registered mail, to the last known
address of the Participant and the Beneficiaries (if the addresses of such Beneficiaries are known
to the Administrator) shall be considered a diligent effort for this purpose. The Administrator
shall not be obliged to search for any Participant or Beneficiary beyond the sending of a
registered letter to such last known address. If a benefit payable to an un-located Participant or
Beneficiary is subject to escheat pursuant to applicable state law, neither the Administrator, the
Company, nor the Employer shall be liable to any person for any payment made in accordance with
such law.

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Article 8. Administration

     8.1. Administrative Authority. Except as otherwise specifically provided herein, the
Plan shall be administered by the Administrator. The Administrator shall have full discretionary
authority to construe and administer the terms of the Plan and its actions under the Plan shall be
binding on all persons. Without limiting the foregoing, the Administrator shall have full
discretionary authority, consistent with the requirements of Section 409A, to:

     (a) Resolve and determine all disputes or questions arising under the Plan, and to
remedy any ambiguities, inconsistencies or omissions in the Plan.

     (b) Adopt such rules of procedure and regulations as in its opinion may be necessary
for the proper and efficient administration of the Plan and as are consistent with the Plan.

     (c) Implement the Plan in accordance with its terms and the rules and regulations
adopted as above.

     (d) Make determinations with respect to the eligibility of any person to participate in
the Plan or derive benefits hereunder and make determinations concerning the crediting and
adjustment of Accounts.

     (e) Appoint such persons or firms, or otherwise act to obtain such advice or
assistance, as it deems necessary or desirable in connection with the administration and
operation of the Plan, and the Administrator shall be entitled to rely conclusively upon,
and shall be fully protected in any action or omission taken by it in good faith reliance
upon, the advice or opinion of such firms or persons.

     8.2. Litigation. Except as may be otherwise required by law, in any action or
judicial proceeding affecting the Plan, no Participant or Beneficiary shall be entitled to any
notice or service of process, and any final judgment entered in such action shall be binding on all
persons interested in, or claiming under, the Plan.

     8.3. Claims Procedure. The Administrator shall establish claims procedures under the
Plan consistent with the requirements of Section 503 of ERISA.

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Article 9. Amendment

     9.1. Right to Amend. The Administrator, by written instrument executed by a duly
authorized representative, shall have the right to amend the Plan, at any time and with respect to
any provisions hereof; provided, however, that no such amendment shall materially or adversely
affect the rights of any Participant with respect to Elective Deferrals and Employer Credits
already made under the Plan as of the date of such amendment, except as permitted under Section
409A.

     9.2. Amendments to Ensure Proper Characterization of Plan. The Plan, as it applies to
Employees, is intended to be an unfunded “top-hat” plan under sections 201(2), 301(a)(3) and
401(a)(1) of ERISA and therefore participation in the Plan by Employees shall be limited to
Employees who (i) qualify for inclusion in a “select group of management or highly compensated
employees” within the meaning of sections 201(2), 301(a)(3), 401(a)(1) and 4021(b)(6) of ERISA and
(ii) are designated by the Company as being eligible to participate. If the Administrator
determines that a Participant no longer qualifies as being a member of a select group of management
or highly compensated employees, then the compensation deferral elections made by such Participant
in accordance with the provisions of the Plan will continue for the remainder of the Plan Year.
However, no additional amounts shall be deferred and credited to the Account of such individual
under the Plan for any future Plan Year until such time as the individual is again determined to be
eligible to participate in the Plan and makes a new election under the provisions of the Plan;
except that all prior amounts credited to the Account of such individual shall continue to be
adjusted for earnings or losses pursuant to the other provisions of the Plan until fully
distributed.

-27-

 

Article 10. Termination

     10.1. Right of the Company to Terminate or Suspend Plan. The Company reserves the
right at any time to terminate the Plan or to suspend the operation of the Plan for a fixed or
indeterminate period of time, by action of the Administrator. In the event of a suspension of the
Plan, the Administrator shall continue all aspects of the Plan, other than any elections to make
Elective Deferrals that have not yet become irrevocable pursuant to Section 3.1(a) and Employer
Credits, during the period of the suspension, in which event accounts as they then exist shall
continue to be credited in accordance with respect to Article 3 and payments hereunder will
continue to be made during the period of the suspension in accordance with Articles 5 and 6.

     10.2. Allocation and Distribution. This Section 10.2 shall become operative on a
complete termination of the Plan. The provisions of this Section 10.2 shall also become operative
in the event of a partial termination of the Plan, as determined by the Administrator, but only
with respect to that portion of the Plan attributable to the Participants to whom the partial
termination is applicable. Upon the effective date of any such event, notwithstanding any other
provisions of the Plan, no persons who were not theretofore Participants shall be eligible to
become Participants. Each Participant’s Accounts as they then exist will be maintained, credited
and paid pursuant to the provisions of this Plan and the Participant’s elections. Notwithstanding
the foregoing, the Company may provide for the accelerated distribution of all accounts upon
termination of the Plan as a whole or with respect to any Participant or group of Participants, but
only to the extent the Company determines this to be permissible under Section 409A.

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Article 11. Miscellaneous

     11.1. Limitation on Liability of Employer. The Employer’s sole liability under the
Plan shall be to pay benefits under the Plan as expressly set forth herein and subject to the terms
hereof. Subject to the preceding sentence, neither the establishment or administration of the
Plan, nor any modification nor the termination or suspension of the Plan, nor the creation of any
account under the Plan, nor the payment of any benefits under the Plan, nor any other action taken
by the Employer or the Administrator with respect to the Plan shall be construed as giving to any
Participant, any Beneficiary or any other person any legal or equitable right against the
Administrator, the Employer, or any officer or employer thereof. Without limiting the foregoing,
neither the Administrator nor the Employer in any way guarantees any Participant’s or Beneficiary’s
Account from loss or decline for any reason.

     11.2. Construction. If any provision of the Plan is held to be illegal or void, such
illegality or invalidity shall not affect the remaining provisions of the Plan, but the illegal or
void provision shall be fully severable and the Plan shall be construed and enforced as if said
illegal or void provision had never been inserted herein. For all purposes of the Plan, where the
context admits, the singular shall include the plural, and the plural shall include the singular.
Headings of Articles and Sections herein are inserted only for convenience of reference and are not
to be considered in the construction of the Plan. The laws of the Commonwealth of Massachusetts
shall govern, control and determine all questions of law arising with respect to the Plan and the
interpretation and validity of its respective provisions, except where those laws are preempted by
the laws of the United States. Participation under the Plan will not give any Participant the
right to be retained in the service of the Employer, nor shall any loss or claimed loss of present
or future benefits, whether accrued or unaccrued, constitute an element of damages in any claim
brought in connection with a Participant’s Separation from Service.

     No provision of the Plan shall be interpreted so as to give any individual any right in any
assets of the Employer which right is greater than the rights of a general unsecured creditor of
the Employer.

     11.3. Taxes. Notwithstanding any other provision of the Plan, all distributions and
withdrawals hereunder shall be subject to reduction for applicable income tax withholding and other
legally or contractually required withholdings. To the extent amounts credited under the

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Plan are includible in “wages” for purposes of Chapter 21 of the Code, or are otherwise
includible in taxable income, prior to distribution or withdrawal the Employer may deduct the
required withholding with respect to such wages or income from compensation currently payable to
the Participant or the Administrator may reduce the Participant’s Accounts hereunder or require the
Participant to make other arrangements satisfactory to the Administrator for the satisfaction of
the Employer’s withholding obligations. If at any time this Plan is found to fail to meet the
requirements of Section 409A, the Administrator may distribute the amount required to be included
in the Participant’s income as a result of such failure. Any amount distributed under the
immediately preceding sentence will be charged against amounts owed to the Participant hereunder
and offset against future payments hereunder. For the avoidance of doubt, the Participant will
have no discretion, and will have no direct or indirect election, as to whether a payment will be
accelerated under this Section 11.3.

     11.4. Section 409A Transition Relief. The Company may, by action of the
Administrator, authorize changes to time and form of payment elections made under the Plan to the
extent consistent with the transition rules, and during the transition relief period, provided
under Section 409A and guidance issued thereunder by the Internal Revenue Service.

     11.5. Spendthrift Provision. No amount payable to a Participant or a Beneficiary
under the Plan will, except as otherwise specifically provided by law, be subject in any manner to
anticipation, alienation, attachment, garnishment, sale, transfer, assignment (either at law or in
equity), levy, execution, pledge, encumbrance, charge or any other legal or equitable process, and
any attempt to do so will be void; nor will any benefit be in any manner liable for or subject to
the debts, contracts, liabilities, engagements or torts of the person entitled thereto. Nothing
herein shall be construed as limiting the Employer’s right to cause its obligations hereunder to be
assumed by a successor to all or a portion of its business or assets.

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     IN WITNESS WHEREOF, the Employer has caused the Plan to be executed, effective as of the 1st
day of January, 2010.

ATTEST/WITNESS

	 	 	 	 	 	 	 

	/s/ Camillo Davis	 	THE TJX COMPANIES, INC	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Print Name: Camillo Davis
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	By:
	 	/s/ Greg Flores	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Print Name:
	 	Greg Flores	 	 
	 
	 	 	 	 	 	 
	 

	 	Title:
	 	Executive Vice President, Chief
Human Resources Officer	 	 
	 
	 	 	 	 	 	 
	 

	 	Date:
	 	May 26, 2010	 	 

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EXHIBIT A

Definition of “Change of Control”

“Change of Control” shall mean the occurrence of any one of the following events:

     (a) there occurs a change of control of the Company of a nature that would be required to be
reported in response to Item 5.01 of the Current Report on Form 8-K (as amended in 2004) pursuant
to Section 13 or 15(d) of the Securities Exchange Act of 1934 (the “Exchange Act”) or in any other
filing under the Exchange Act; provided, however, that if the Participant or a Participant Related
Party is the Person or a member of a group constituting the Person acquiring control, a transaction
shall not be deemed to be a Change of Control as to a Participant unless the Committee shall
otherwise determine prior to such occurrence; or

     (b) any Person other than the Company, any wholly-owned subsidiary of the Company, or any
employee benefit plan of the Company or such a subsidiary becomes the owner of 20% or more of the
Company’s Common Stock and thereafter individuals who were not directors of the Company prior to
the date such Person became a 20% owner are elected as directors pursuant to an arrangement or
understanding with, or upon the request of or nomination by, such Person and constitute a majority
of the Company’s Board of Directors; provided, however, that unless the Committee shall otherwise
determine prior to the acquisition of such 20% ownership, such acquisition of ownership shall not
constitute a Change of Control as to a Participant if the Participant or a Participant Related
Party is the Person or a member of a group constituting the Person acquiring such ownership; or

     (c) there occurs any solicitation or series of solicitations of proxies by or on behalf of
any Person other than the Company’s Board of Directors and thereafter individuals who were not
directors of the Company prior to the commencement of such solicitation or series of solicitations
are elected as directors pursuant to an arrangement or understanding with, or upon the request of
or nomination by, such Person and constitute a majority of the Company’s Board of Directors; or

     (d) the Company executes an agreement of acquisition, merger or consolidation which
contemplates that (i) after the effective date provided for in such agreement, all or substantially
all of the business and/or assets of the Company shall be owned, leased or otherwise controlled by
another Person and (ii) individuals who are directors of the Company when such agreement is
executed shall not constitute a majority of the board of directors of the survivor or successor
entity immediately after the effective date provided for in such agreement; provided, however, that
unless otherwise determined by the Committee, no transaction shall constitute a Change of Control
as to a Participant if, immediately after such transaction, the Participant or any Participant
Related Party shall own equity securities of any surviving corporation (“Surviving Entity”) having
a fair value as a percentage of the fair value of the equity securities of such Surviving Entity
greater than 125% of the fair value of the equity securities of the Company owned by the
Participant and any Participant Related Party immediately prior to such transaction, expressed as a
percentage of the fair value of all equity securities of the Company

-32-

 

immediately prior to such transaction (for purposes of this paragraph ownership of equity
securities shall be determined in the same manner as ownership of Common Stock); and provided,
further, that, for purposes of this paragraph (d), if such agreement requires as a condition
precedent approval by the Company’s shareholders of the agreement or transaction, a Change of
Control shall not be deemed to have taken place unless and until the acquisition, merger, or
consolidation contemplated by such agreement is consummated (but immediately prior to the
consummation of such acquisition, merger, or consolidation, a Change of Control shall be deemed to
have occurred on the date of execution of such agreement).

In addition, for purposes of this Exhibit A the following terms have the meanings set forth below:

     “Common Stock” shall mean the then outstanding Common Stock of the Company plus, for purposes
of determining the stock ownership of any Person, the number of unissued shares of Common Stock
which such Person has the right to acquire (whether such right is exercisable immediately or only
after the passage of time) upon the exercise of conversion rights, exchange rights, warrants or
options or otherwise. Notwithstanding the foregoing, the term Common Stock shall not include
shares of Preferred Stock or convertible debt or options or warrants to acquire shares of Common
Stock (including any shares of Common Stock issued or issuable upon the conversion or exercise
thereof) to the extent that the Board of Directors of the Company shall expressly so determine in
any future transaction or transactions.

     A Person shall be deemed to be the “owner” of any Common Stock:

     (i) of which such Person would be the “beneficial owner,” as such term is defined in
Rule 13d-3 promulgated by the Securities and Exchange Commission (the “Commission”) under
the Exchange Act, as in effect on March 1, 1989; or

     (ii) of which such Person would be the “beneficial owner” for purposes of Section 16 of
the Exchange Act and the rules of the Commission promulgated thereunder, as in effect on
March 1, 1989; or

     (iii) which such Person or any of its affiliates or associates (as such terms are
defined in Rule 12b-2 promulgated by the Commission under the Exchange Act, as in effect on
March 1, 1989) has the right to acquire (whether such right is exercisable immediately or
only after the passage of time) pursuant to any agreement, arrangement or understanding or
upon the exercise of conversion rights, exchange rights, warrants or options or otherwise.

     “Person” shall have the meaning used in Section 13(d) of the Exchange Act, as in effect on
March 1, 1989.

A “Participant Related Party” shall mean, with respect to a Participant, any affiliate or associate
of the Participant other than the Company or a Subsidiary of the Company. The terms “affiliate”
and “associate” shall have the meanings ascribed thereto in Rule 12b-2 under the Exchange Act (the
term “registrant” in the definition of “associate” meaning, in this case, the Company).

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     “Subsidiary” shall mean any corporation or other entity (other than the Company) in an
unbroken chain beginning with the Company if each of the entities (other than the last entity in
the unbroken chain) owns stock or other interests possessing 50% or more of the total combined
voting power of all classes of stock or other interests in one of the other corporations or other
entities in the chain.

     “Committee” shall mean the Executive Compensation Committee of the Board of Directors of the
Company.

     Initially capitalized terms not defined above shall have the meanings assigned to those terms
in Article I of the Plan.

     Notwithstanding the foregoing, in any case where the occurrence of a Change of Control could
affect the vesting or payment of amounts subject to the requirements of Section 409A, the term
“Change of Control” shall mean an occurrence that both (i) satisfies the requirements set forth
above in this Exhibit A, and (ii) is a “change in control event” as that term is defined in the
regulations under Section 409A.

-34-

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