CONFORMED COPY
EMPLOYMENT AGREEMENT
DATED AS OF JUNE 3, 2003
BETWEEN XXXXXX X. ENGLISH AND THE TJX COMPANIES, INC.
INDEX
PAGE
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1. EFFECTIVE DATE; TERM OF AGREEMENT........................................................................ 1
2. SCOPE OF EMPLOYMENT...................................................................................... 1
3. COMPENSATION AND BENEFITS................................................................................ 2
4. TERMINATION OF EMPLOYMENT; IN GENERAL................................................................... 5
5. BENEFITS UPON NON-VOLUNTARY TERMINATION OF EMPLOYMENT OR UPON EXPIRATION OF THE AGREEMENT............... 5
6. OTHER TERMINATION; VIOLATION OF CERTAIN AGREEMENTS...................................................... 7
7. BENEFITS UPON CHANGE IN CONTROL......................................................................... 8
8. AGREEMENT NOT TO SOLICIT OR COMPETE..................................................................... 8
9. ASSIGNMENT.............................................................................................. 9
10. NOTICES................................................................................................. 9
11. CERTAIN EXPENSES........................................................................................ 10
12. WITHHOLDING............................................................................................. 10
13. GOVERNING LAW........................................................................................... 10
14. ARBITRATION............................................................................................. 10
15. ENTIRE AGREEMENT........................................................................................ 10
EXHIBIT A Certain Definitions.................................................................................. A-1
EXHIBIT B Definition of "Change of Control".................................................................... B-1
EXHIBIT C Change of Control Benefits........................................................................... C-1
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XXXXXX X. ENGLISH
EMPLOYMENT AGREEMENT
AGREEMENT dated as of June 3, 2003 between XXXXXX X. ENGLISH of 00
Xxxxxxxxx Xxxx, Xxxxxxxxx, XX 00000 ("Executive") and The TJX Companies, Inc., a
Delaware corporation whose principal office is in Xxxxxxxxxx, Xxxxxxxxxxxxx
00000.
RECITALS
The TJX Companies, Inc. (the "Company") and Executive intend that
Executive shall serve the Company as President and Chief Executive Officer on
the terms set forth below and, to that end, deem it desirable and appropriate to
enter into this Agreement.
AGREEMENT
The parties hereto, in consideration of the mutual agreements
hereinafter contained, agree as follows:
1. EFFECTIVE DATE; TERM OF AGREEMENT. This Agreement shall become
effective as of June 3, 2003 (the "Effective Date"). Executive's employment
shall continue on the terms provided herein until the date of the annual meeting
of stockholders of the Company occurring in 2008 (the "2008 meeting date"),
subject to earlier termination as provided herein (such period of employment
hereinafter called the "Employment Period").
2. SCOPE OF EMPLOYMENT.
(a) Nature of Services. Executive shall diligently perform the duties
and assume the responsibilities of President and Chief Executive Officer of the
Company and such additional executive duties and responsibilities as shall from
time to time be assigned to him by the Board.
(b) Extent of Services. Except for illnesses and vacation periods,
Executive shall devote substantially all his working time and attention and his
best efforts to the performance of his duties and responsibilities under this
Agreement. However, Executive may (i) make any passive investments where he is
not obligated or required to, and shall not in fact, devote any managerial
efforts, (ii) participate in charitable or community activities or in trade or
professional organizations, or (iii) subject to Board approval (which approval
shall not be unreasonably withheld or withdrawn), hold directorships in public
companies, except only that the Board shall have the right to limit such
services as a director or such participation whenever the Board shall believe
that the time spent on such activities infringes in any material respect upon
the time required by Executive for the performance of his duties under this
Agreement or is otherwise incompatible with those duties.
3. COMPENSATION AND BENEFITS.
(a) Base Salary. Executive shall be paid a base salary at the rate
hereinafter specified, such Base Salary to be paid in the same manner and at the
same times as the Company shall pay base salary to other executive employees.
The rate at which Executive's Base Salary shall be paid shall be $1,200,000 per
year or such other rate (not less than $1,200,000 per year) as the Board may
determine after Board review not less frequently than annually.
(b) Awards Under Stock Incentive Plan And LRPIP Made Prior to FYE 2004.
Reference is made to the following awards made prior to FYE 2004 to Executive
under the Company's Stock Incentive Plan (including any successor, the "Stock
Incentive Plan") and Long Range Performance Incentive Plan (the "LRPIP"):
(i) Options: Grant Nos. 86-56, 86-57, 86-58, 86-59 and 86-60;
and
(ii) Performance-Based Restricted Stock: 191,666 shares of
Restricted Stock awarded in April 2001 and scheduled to vest in
accordance with the terms of that award; and
(iii) LRPIP: Awards under LRPIP for the FYE 2003 to FYE 2005
cycle and prior cycles.
Each of the above-referenced awards shall continue for such period or periods
and in accordance with such terms as are set out in the grant and other
governing documents relating to such awards and shall not be affected by the
terms of this Agreement except as otherwise expressly provided herein.
(c) New Stock Awards.
(i) Consistent with the terms of the Stock Incentive Plan,
Executive will be entitled to awards of stock options under the Stock
Incentive Plan at levels commensurate with his position but not less
than 300,000 stock options annually, beginning in calendar 2003.
(ii) In addition, the Committee on June 3, 2003 awarded
Executive a Performance Award under the Stock Incentive Plan consisting
of 500,000 shares of Performance-Based Restricted Stock (the "New
Restricted Stock") subject to Executive's continued employment and
satisfaction of specified performance goals. The New Restricted Stock
shall be subject to the following vesting schedule during the
Employment Period: (A) 100,000 shares shall vest on April 15, 2004;
provided that the Committee has theretofore certified that the 2004
performance target (as hereinafter defined) has been met; (B) 100,000
shares shall vest on April 15, 2005; provided that the Committee has
theretofore certified that MIP performance (Company performance
measures) for FYE 2005 has been achieved at a level providing for a MIP
payout of at least 67% of target; (C) 100,000 shares shall vest on
April 15, 2006; provided, that the Committee has theretofore certified
that MIP performance (Company performance measures) for FYE 2006 has
been achieved at a level providing for a MIP payout of at least 67% of
target; (D) 100,000 shares shall vest on April 15, 2007; provided, that
the
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Committee has theretofore certified that MIP performance (Company
performance measures) for FYE 2007 has been achieved at a level
providing for a MIP payout of at least 67% of target; and (E) 100,000
shares shall vest on April 15, 2008; provided, that the Committee has
theretofore certified that MIP performance (Company performance
measures) for FYE 2008 has been achieved at a level providing for a MIP
payout of at least 67% of target. If for any of FYEs 2004, 2005, 2006,
2007 or 2008 the Committee certifies that MIP performance or 2004
performance (Company performance measures) has been achieved at a level
authorizing some MIP payout but less than a 67% of target payout, the
number of shares of restricted stock vesting under this paragraph for
such fiscal year shall be prorated on a straight line basis (with zero
shares vesting if no MIP payout is authorized). If for any reason the
Committee's certification as to MIP performance (or 2004 performance)
for any fiscal year is delayed until after the vesting dates specified
above, the actual date of the Committee's certification shall be
substituted for the vesting date specified above. For purposes of
clause (A) above, the "2004 performance" target shall mean the
performance target established by the Committee at the time of its
award of the New Restricted Stock, as measured by references to
performance for the last three fiscal quarters of FYE 2004.
(iii) Other. Notwithstanding the service and performance
conditions specified in (ii) above, the New Restricted Stock shall vest
upon the occurrence of a Change of Control, in the event of Executive's
death, Disability or Incapacity, or in the event of a Constructive
Termination (as defined in Section 5(a) below) or termination of
Executive's employment by the Company other than for Cause. If
Executive's employment with the Company terminates for any other
reason, any shares of New Restricted Stock not then vested shall be
immediately forfeited. Executive shall be entitled to tender vested
shares in satisfaction of minimum required tax withholding with respect
to vesting under the New Restricted Stock award.
(d) LRPIP. Executive has been awarded a grant under LRPIP for the FYE
2004 to FYE 2006 cycle and, during the Employment Period, will be eligible to
participate in additional annual grants under LRPIP. To the extent provided in
Section 162(m) of the Internal Revenue Code of 1986, as amended (the "Code"),
the terms of any such award shall be established by the Committee. Subject to
the foregoing, Executive shall be entitled with respect to the FYE 2004 to FYE
2006 cycle to earn up to 75% of his Base Salary as in effect on the Effective
Date (or, for any subsequent award cycles, up to 75% of his Base Salary as in
effect at the beginning of such cycle) if the target established by the
Committee is met and up to 112.5% of such Base Salary if such target is
exceeded, with the payment potential ranging from 0% to 112.5% of Executive's
Base Salary as established by the terms of the award. To the extent the material
terms of LRPIP are required to be approved by stockholders, Executive's
eligibility to receive awards under LRPIP for any cycle to which such
stockholder vote pertains shall be subject to such stockholder approval.
(e) MIP. Executive has been awarded a grant under the Company's
Management Incentive Plan ("MIP") for FYE 2004 and, during the Employment
Period, will be eligible to participate in additional annual awards under MIP.
To the extent provided in Section 162(m) of the Code, the goals, scope and
conditions of any award shall be established annually by the Committee. Subject
to the foregoing, Executive shall be entitled to earn up to 75% of his Base
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Salary if the target established by the Committee is met and up to 150% of his
Base Salary if such target is exceeded, with the payment potential ranging from
0% to 150% of Executive's Base Salary as established by the terms of the award.
To the extent the material terms of MIP are required to be approved by
stockholders, Executive's eligibility to receive annual awards under MIP for any
year to which such stockholder vote pertains shall be subject to such
stockholder approval.
(f) SERP. Except as provided in Exhibit C ("Change of Control
Benefits") and this subsection (f), Executive is entitled to the greater of
Category B or C benefits determined and made payable in accordance with the
generally applicable provisions of the Company's Supplemental Executive
Retirement Plan ("SERP"). If Executive retires under SERP on or after attaining
age 55, his SERP benefit shall be calculated taking into account the following:
(i) For purposes of determining any Category B early
retirement reduction under SERP, Executive's age at the time of
retirement shall be deemed to be his actual age at retirement plus five
(5) years (but not greater than the greater of Executive's actual age
at retirement or age 65); and
(ii) Any Category B lump sum payment under SERP shall be
determined under the generally applicable terms of SERP as in effect at
the time of Executive's retirement; provided, that if Executive's lump
sum benefit as so determined (the "unmodified lump sum amount") does
not take into account the early retirement subsidy applicable to
payment of Executive's benefit in annuity form, his Category B SERP
lump sum benefit as modified by this Agreement shall instead equal the
unmodified lump sum amount multiplied by a fraction, the numerator of
which is Executive's Category B annual SERP retirement benefit
calculated in accordance with clause (f)(i) above and the denominator
of which is the Category B annual SERP retirement benefit to which he
would be entitled without regard to clause (f)(i) above.
Executive shall at all times have a fully vested right to his accrued benefit,
including any future accruals (and including, for the avoidance of doubt, any
related death benefit), under SERP, in each case taking into account where
applicable the adjustments described above but otherwise based on Executive's
actual years of service.
(g) Qualified Plans; Other Deferred Compensation Plans. Executive shall
be entitled during the Employment Period to participate in the Company's
tax-qualified retirement and profit-sharing plans and its nonqualified deferred
compensation plans, including the GDCP and ESP, in each case in accordance with
the terms of the applicable plan; provided, that for the avoidance of doubt,
Executive shall not be entitled to any Company matching credits under ESP.
(h) Policies and Fringe Benefits. Executive shall be subject to Company
policies applicable to its executives generally and shall be entitled to receive
all such fringe benefits as the Company shall from time to time make available
to other executives generally (subject to the terms of any applicable fringe
benefit plan).
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4. TERMINATION OF EMPLOYMENT; IN GENERAL.
(a) The Company shall have the right to end Executive's employment at
any time and for any reason, with or without Cause.
(b) The Employment Period shall terminate when Executive becomes
Disabled. In addition, if by reason of Incapacity Executive is unable to perform
his duties for at least six continuous months, upon written notice by the
Company to Executive the Employment Period will be terminated for Incapacity.
(c) Whenever the Employment Period shall terminate, Executive shall
resign all offices or other positions he shall hold with the Company and any
affiliated corporations, including any position on the Board.
5. BENEFITS UPON NON-VOLUNTARY TERMINATION OF EMPLOYMENT OR UPON
EXPIRATION OF THE AGREEMENT.
(a) Certain Terminations Prior to the 2008 meeting date. If the
Employment Period shall have terminated prior to the 2008 meeting date by reason
of (i) death, Disability or Incapacity of Executive, (ii) termination by the
Company for any reason other than Cause or (iii) termination by Executive in the
event that either (A) Executive shall be removed from or fail to be reelected to
the offices of Chief Executive Officer, a Director and a member of any Executive
Committee of the Board, or (B) Executive is relocated more than forty (40) miles
from the current corporate headquarters of the Company, in either case without
his prior written consent, (a "Constructive Termination") then all compensation
and benefits for Executive shall be as follows:
(i) Until the third anniversary of the Date of Termination or
until the 2008 meeting date, whichever is earlier, but in no event for
less than twelve (12) months after the Date of Termination, (such
three-year or shorter period being herein referred to as the
"termination period") the Company will pay to Executive or his legal
representative continued Base Salary at the rate in effect at
termination of employment, subject to the following:
(A) If Executive is eligible for long-term disability
compensation benefits under the Company's long-term disability
plan or any successor Company long-term disability plan, the
amount payable under this clause shall be paid at a rate equal
to the excess of (I) the rate of Base Salary in effect at
termination of employment, over (II) the long-term disability
compensation benefits for which Executive is eligible under
such plan.
(B) Payments pursuant to this clause (a)(i) shall be
paid for the first twelve (12) months of the termination
period without reduction for compensation earned from other
employment or self-employment, and shall thereafter be reduced
by such compensation received by Executive from other
employment or self-employment.
(ii) Until the expiration of the termination period as defined
at (a)(i) above and subject to such minimum coverage-continuation
requirements as may be required by law,
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the Company will provide (except to the extent that Executive shall
obtain no less favorable coverage from another employer or from
self-employment) such medical and hospital insurance and term life
insurance for Executive and his family, comparable to the insurance
provided for executives generally, as the Company shall determine, and
upon the same terms and conditions as the same shall be provided for
other Company executives generally; provided, however, that in no event
shall such benefits or the terms and conditions thereof be less
favorable to Executive than those afforded to him as of the Date of
Termination; and further provided, that to the extent it is impossible
or impracticable to provide any such coverage to Executive under the
Company's then existing employee benefit plans or arrangements, the
Company shall arrange for alternative comparable coverage or, if such
alternative coverage is not available, shall pay to Executive the cost
of such coverage, all as reasonably determined by the Committee.
(iii) The Company will pay to Executive or his legal
representative, without offset for compensation earned from other
employment or self-employment, (A) any unpaid amounts to which
Executive is entitled under MIP for the fiscal year of the Company
ended immediately prior to Executive's termination of employment, plus
(B) any unpaid amounts owing with respect to LRPIP cycles in which
Executive participated and which were completed prior to termination.
These amounts will be paid at the same time as other awards for such
prior year or cycle are paid.
(iv) The Company will pay to Executive or his legal
representative, without offset for compensation earned from other
employment or self-employment, an amount in the nature of severance
equal to the sum of (A) Executive's MIP Target Award, if any, for the
year of termination, multiplied by a fraction, the numerator of which
is three hundred and sixty-five (365) plus the number of days during
such year prior to termination, and the denominator of which is seven
hundred and thirty (730), plus (B) with respect to each LRPIP cycle in
which Executive participated and which had not ended prior to
termination of employment, 1/36 of an amount equal to Executive's LRPIP
Target Award for such cycle multiplied by the number of full months in
such cycle completed prior to termination of employment. The severance
component described in clause (a)(iv)(A) above will be paid not later
than MIP awards for the year of termination are paid. The severance
component described in clause (a)(iv)(B) above, to the extent measured
by the LRPIP Target Award for any cycle, will be paid not later than
the date on which LRPIP awards for such cycle are paid or would have
been paid.
(v) In addition, Executive or his legal representative shall
be entitled to the benefits described in Sections 3(b)(i) (Existing
Options), Section 3(c) (New Stock Awards), and 3(f) (SERP) and to
payment of his vested benefits under the plans described in 3(g)
(Qualified Plans; Other Deferred Compensation Plans).
(vi) If termination occurs by reason of Incapacity or
Disability, Executive shall be entitled to such compensation, if any,
as is payable pursuant to the Company's long-term disability plan or
any successor Company disability plan. If for any period Executive
receives long-term disability compensation payments under a long-term
disability plan of the Company as well as payments under (a)(i) above,
and if the sum of such payments (the "combined salary/disability
benefit") exceeds the payment for such
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period to which Executive is entitled under (a)(i) above (determined
without regard to paragraph (A) thereof), he shall promptly pay such
excess in reimbursement to the Company; provided, that in no event
shall application of this sentence result in reduction of Executive's
combined salary/disability benefit below the level of long-term
disability compensation payments to which Executive is entitled under
the long-term disability plan or plans of the Company.
(vii) If termination occurs by reason of death, Incapacity or
Disability, Executive shall also be entitled to an amount in the nature
of severance equal to Executive's MIP Target Award for the year of
termination, without proration. This amount will be paid at the same
time as the amount payable under paragraph (iv) above.
(viii) Except as expressly set forth above or as required by
law, Executive shall not be entitled to continue participation during
the termination period in any employee benefit or fringe benefit plans,
other than a Company-provided automobile or automobile allowance.
(b) Termination on the 2008 meeting date. Unless earlier terminated or
except as otherwise mutually agreed by Executive and the Company, Executive's
employment with the Company shall terminate on the 2008 meeting date. Unless the
Company in connection with such termination shall offer to Executive continued
service in a position acceptable to Executive and upon mutually and reasonably
agreeable terms, Executive shall be treated as having terminated under Section
5(a) on the day immediately preceding the 2008 meeting date and shall be
entitled to the pay and benefits described therein. If the Company in connection
with such termination offers to Executive continued service in a position
acceptable to Executive and upon mutually and reasonably agreeable terms, and
Executive declines such service, he shall be treated for all purposes of this
Agreement as having terminated his employment voluntarily (other than for Valid
Reason) on the 2008 meeting date and he shall be entitled only to those benefits
to which he would be entitled under Section 6(a) ("Voluntary termination of
employment"). For purposes of the two preceding sentences, "service in a
position acceptable to Executive" shall mean service as Chief Executive Officer
of the Company or service in such other position, if any, as may be acceptable
to Executive.
6. OTHER TERMINATION; VIOLATION OF CERTAIN AGREEMENTS.
(a) Voluntary termination of employment. If Executive terminates
his employment voluntarily, Executive or his legal
representative shall be entitled (in each case in accordance
with and subject to the terms of the applicable arrangement)
to any benefits described in Sections 3(b)(i) (Existing
Options), Section 3(c) (New Stock Awards), and 3(f) (SERP)
(determined without regard to Section 3(f) of this Agreement
unless Executive's voluntary termination constitutes a
retirement at or after age 55 under the terms of SERP), and to
any vested benefits under the plans described in
3(g)(Qualified Plans; Other Deferred Compensation Plans). No
other benefits shall be paid under this Agreement upon a
voluntary termination of employment. Any benefits payable
under SERP shall be payable only if Executive does not violate
the provisions of Section 8 of this Agreement
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(other than, in the case of a voluntary termination for Valid
Reason, the provisions of Section 8(b)).
(b) Termination for Cause; violation of certain agreements. If the
Company should end Executive's employment for Cause, or,
notwithstanding Section 5 and Section 6(a) above, if Executive
should violate the protected persons or noncompetition
provisions of Section 8, all compensation and benefits
otherwise payable pursuant to this Agreement shall cease,
other than (x) such vested amounts as are credited to
Executive's account (but not received) under GDCP and ESP in
accordance with the terms of those programs; (y) provided that
Executive does not violate the provisions of Section 8 of this
Agreement, any benefits to which Executive may be entitled
under SERP (determined without regard to Section 3(f) of this
Agreement), and (z) benefits, if any, to which Executive may
be entitled under Sections 3(b)(i) (Existing Options) or 3(c)
(New Stock Awards) and any vested benefits to which the
Executive is entitled under the Company's tax-qualified plans.
The Company does not waive any rights it may have for damages
or for injunctive relief.
7. BENEFITS UPON CHANGE IN CONTROL. Notwithstanding any other provision
of this Agreement, in the event of a Change of Control, the determination and
payment of any benefits payable thereafter with respect to Executive shall be
governed exclusively by the provisions of Exhibit C.
8. AGREEMENT NOT TO SOLICIT OR COMPETE.
(a) Upon the termination of employment at any time, then for a period
of two years after the termination of the Employment Period, Executive shall not
under any circumstances employ, solicit the employment of, or accept unsolicited
the services of, any "protected person" or recommend the employment of any
"protected person" to any other business organization. A "protected person"
shall be a person known by Executive to be employed by the Company or its
Subsidiaries or to have been employed by Company or its Subsidiaries within six
months prior to the commencement of conversations with such person with respect
to employment.
As to (i) each "protected person" to whom the foregoing applies, (ii)
each subcategory of "protected person" as defined above, (iii) each limitation
on (A) employment, (B) solicitation and (C) unsolicited acceptance of services,
of each "protected person" and (iv) each month of the period during which the
provisions of this subsection (a) apply to each of the foregoing, the provisions
set forth in this subsection (a) are deemed to be separate and independent
agreements and in the event of unenforceability of any such agreement, such
unenforceable agreement shall be deemed automatically deleted from the
provisions hereof and such deletion shall not affect the enforceability of any
other provision of this subsection (a) or any other term of this Agreement.
(b) During the course of his employment, Executive will have learned
many trade secrets of the Company and will have access to confidential
information and business plans for the Company. Therefore, upon termination of
the Employment Period on the 2008 meeting date or if Executive should end his
employment voluntarily at any time, including by reason of retirement or
Disability but not including a voluntary termination for Valid Reason, or if the
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Company should end Executive's employment at any time for Cause, then for a
period of two years thereafter, Executive will not engage, either as a
principal, employee, partner, consultant or investor (other than a less-than-1%
equity interest in an entity), in a business which is a competitor of the
Company. A business shall be deemed a competitor of the Company if and only (i)
if it shall then be so regarded by retailers generally, or (ii) if it shall
operate a promotional off-price family apparel and/or home furnishings store
within ten (10) miles of any "then existing or proposed Company store," or (iii)
if it shall operate an on-line, "e-commerce" or other internet-based off-price
family apparel and/or home furnishings business; provided, that a business shall
be deemed a competitor of the Company under clause (iii) only if the Company is
then also operating an on-line, "e-commerce" or other internet-based off-price
family apparel and/or home furnishings business; and further provided, that a
business shall be deemed a competitor of the Company by reason of engaging in a
promotional off-price home furnishings business only if the Company is then also
engaged in such a business. The term "then existing or proposed Company store"
in the previous sentence shall refer to any such store that is, at the time of
termination of the Employment Period, operated by the Company or any direct or
indirect subsidiary of the Company or under lease for operation as aforesaid.
Nothing herein shall restrict the right of Executive to engage in a business
that operates a conventional or full xxxx-up department store. Executive agrees
that if, at any time, pursuant to action of any court, administrative or
governmental body or other arbitral tribunal, the operation of any part of this
paragraph shall be determined to be unlawful or otherwise unenforceable, then
the coverage of this paragraph shall be deemed to be restricted as to duration,
geographical scope or otherwise, as the case may be, to the extent, and only to
the extent, necessary to make this paragraph lawful and enforceable in the
particular jurisdiction in which such determination is made.
(c) If the Employment Period terminates, Executive agrees (i) to notify
the Company immediately upon his securing employment or becoming self-employed
during any period when Executive's compensation from the Company shall be
subject to reduction or his benefits provided by the Company shall be subject to
termination as provided in Section 6 and (ii) to furnish to the Company written
evidence of his compensation earned from any such employment or self-employment
as the Company shall from time to time request. In addition, upon termination of
the Employment Period for any reason other than the death of Executive,
Executive shall immediately return all written trade secrets, confidential
information and business plans of the Company and shall execute a certificate
certifying that he has returned all such items in his possession or under his
control.
9. ASSIGNMENT. The rights and obligations of the Company shall enure to
the benefit of and shall be binding upon the successors and assigns of the
Company. The rights and obligations of Executive are not assignable except only
that payments payable to him after his death shall be made by devise or descent.
10. NOTICES. All notices and other communications required hereunder
shall be in writing and shall be given by mailing the same by certified or
registered mail, return receipt requested, postage prepaid. If sent to the
Company the same shall be mailed to the Company at 000 Xxxxxxxxxx Xxxx,
Xxxxxxxxxx, Xxxxxxxxxxxxx 00000, Attention: Chairman of the Executive
Compensation Committee, or other such address as the Company may hereafter
designate by notice to Executive; and if sent to the Executive, the same shall
be mailed to Executive at 00
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Xxxxxxxxx Xxxx, Xxxxxxxxx, XX 00000 or at such other address as Executive may
hereafter designate by notice to the Company.
11. CERTAIN EXPENSES. The Company shall bear the reasonable fees and
costs of Executive's legal and financial advisors (not to exceed $10,000 in the
aggregate) incurred in negotiating this Agreement.
12. WITHHOLDING. Anything to the contrary notwithstanding, all payments
required to be made by the Company hereunder to Executive shall be subject to
the withholding of such amounts, if any, relating to tax and other payroll
deductions as the Company may reasonably determine it should withhold pursuant
to any applicable law or regulation.
13. GOVERNING LAW. This Agreement and the rights and obligations of the
parties hereunder shall be governed by the laws of the Commonwealth of
Massachusetts.
14. ARBITRATION. In the event that there is any claim or dispute
arising out of or relating to this Agreement, or an alleged breach thereof, and
the parties hereto shall not have resolved such claim or dispute within sixty
(60) days after written notice from one party to the other setting forth the
nature of such claim or dispute, then such claim or dispute shall be settled
exclusively by binding arbitration in Boston, Massachusetts in accordance with
the Rules Governing Resolution of Employment Disputes of the American
Arbitration Association by an arbitrator mutually agreed upon by the parties
hereto or, in the absence of such agreement, by an arbitrator selected according
to such Rules. Notwithstanding the foregoing, if either the Company or Executive
shall request, such arbitration shall be conducted by a panel of three
arbitrators, one selected by the Company, one selected by Executive and the
third selected by agreement of the first two, or, in the absence of such
agreement, in accordance with such Rules. Judgment upon the award rendered by
such arbitrator(s) shall be entered in any Court having jurisdiction thereof
upon the application of either party.
15. ENTIRE AGREEMENT. This Agreement, including Exhibits A through C,
represents the entire agreement between the parties relating to the terms of
Executive's employment by the Company and supersedes all prior written or oral
agreements between them.
/s/ Xxxxxx X. English
------------------------------------
Executive
THE TJX COMPANIES, INC.
By /s/ Xxxxxx X. Xxxxxxxxx
---------------------------------
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EXHIBIT A
Certain Definitions
(a) "Base Salary" means, for any period, the amount described in
Section 3(a).
(b) "Board" means the Board of Directors of the Company.
(c) "Committee" means the Executive Compensation Committee of the
Board.
(d) "Cause" means dishonesty by Executive in the performance of his
duties, conviction of a felony (other than a conviction arising solely under a
statutory provision imposing criminal liability upon Executive on a per se basis
due to the Company offices held by Executive, so long as any act or omission of
Executive with respect to such matter was not taken or omitted in contravention
of any applicable policy or directive of the Board), gross neglect of duties
(other than as a result of Disability or death), or conflict of interest which
conflict shall continue for thirty (30) days after the Company gives written
notice to Executive requesting the cessation of such conflict.
In respect of any termination during a Standstill Period, Executive
shall not be deemed to have been terminated for Cause until the later to occur
of (i) the 30th day after notice of termination is given and (ii) the delivery
to Executive of a copy of a resolution duly adopted by the affirmative vote of
not less than a majority of the Company's directors at a meeting called and held
for that purpose (after reasonable notice to Executive), and at which Executive
together with his counsel was given an opportunity to be heard, finding that the
Executive was guilty of conduct described in the definition of "Cause" above,
and specifying the particulars thereof in detail; provided, however, that the
Company may suspend Executive and withhold payment of his Base Salary from the
date that notice of termination is given until the earliest to occur of (A)
termination of Executive for Cause effected in accordance with the foregoing
procedures (in which case Executive shall not be entitled to his Base Salary for
such period), (B) a determination by a majority of the Company's directors that
Executive was not guilty of the conduct described in the definition of "Cause"
effected in accordance with the foregoing procedures (in which case Executive
shall be reinstated and paid any of his previously unpaid Base Salary for such
period), or (C) ninety (90) days after notice of termination is given (in which
case Executive shall then be reinstated and paid any of his previously unpaid
Base Salary for such period). If Base Salary is withheld and then paid pursuant
to clauses (B) or (C) of the preceding sentence, the amount thereof shall be
accompanied by simple interest, calculated on a daily basis, at a rate per annum
equal to the prime or base lending rate, as in effect at the time, of the
Company's principal commercial bank.
(e) "Change of Control" has the meaning given it in Exhibit B.
(f) "Change of Control Termination" means the termination of
Executive's employment during a Standstill Period (1) by the Company other than
for Cause, or (2) by Executive for good reason, or (3) by reason of death,
Incapacity or Disability.
For purposes of this definition, termination for "good reason" shall
mean the voluntary termination by Executive of his employment (A) within one
hundred and twenty (120) days after
A-1
the occurrence without Executive's express written consent of any one of the
events described in clauses (I), (II), (III), (IV), (V) or (VI) below, provided,
that Executive gives notice to the Company at least thirty (30) days in advance
requesting that the pertinent situation described therein be remedied, and the
situation remains unremedied upon expiration of such 30-day period; (B) within
one hundred and twenty (120) days after the occurrence without Executive's
express written consent of the event described in clause (VII), provided, that
Executive gives notice to the Company at least thirty (30) days in advance of
his intent to terminate his employment in respect of such event; or (C) under
the circumstances described in clause (VIII) below, provided, that Executive
gives notice to the Company at least thirty (30) days in advance:
(I) the assignment to him of any duties inconsistent with
his positions, duties, responsibilities, reporting
requirements, and status with the Company immediately
prior to the Change of Control, or any removal of
Executive from or any failure to reelect him to such
positions, except in connection with the termination
of Executive's employment by the Company for Cause or
by Executive other than for good reason, or any other
action by the Company which results in a diminishment
in such position, authority, duties or
responsibilities, other than an insubstantial and
inadvertent action which is remedied by the Company
promptly after receipt of notice thereof given by
Executive; or
(II) if Executive's rate of Base Salary for any fiscal year
is less than 100% of the rate of Base Salary paid to
Executive in the completed fiscal year immediately
preceding the Change of Control or if Executive's
total cash compensation opportunities, including
salary and incentives, for any fiscal year are less
than 100% of the total cash compensation opportunities
made available to Executive in the completed fiscal
year immediately preceding the Change of Control; or
(III) the failure of the Company to continue in effect any
benefits or perquisites, or any pension, life
insurance, medical insurance or disability plan in
which Executive was participating immediately prior to
the Change of Control unless the Company provides
Executive with a plan or plans that provide
substantially similar benefits, or the taking of any
action by the Company that would adversely affect
Executive's participation in or materially reduce
Executive's benefits under any of such plans or
deprive Executive of any material fringe benefit
enjoyed by Executive immediately prior to the Change
of Control; or
(IV) any purported termination of Executive's employment by
the Company for Cause during a Standstill Period which
is not effected in compliance with paragraph (d)
above; or
(V) any relocation of Executive of more than forty (40)
miles from the place where Executive was located at
the time of the Change of Control; or
(VI) any other breach by the Company of any provision of
this Agreement; or
A-2
(VII) the Company sells or otherwise disposes of, in one
transaction or a series of related transactions,
assets or earning power aggregating more than 30% of
the assets (taken at asset value as stated on the
books of the Company determined in accordance with
generally accepted accounting principles consistently
applied) or earning power of the Company (on an
individual basis) or the Company and its Subsidiaries
(on a consolidated basis) to any other Person or
Persons (as those terms are defined in Exhibit B); or
(VIII) the voluntary termination by Executive of his
employment at any time within one year after the
Change of Control. Notwithstanding the foregoing, the
Board may expressly waive the application of this
clause (VIII) if it waives the applicability of
substantially similar provisions with respect to all
persons with whom the Company has a written severance
agreement (or may condition its application on any
additional requirements or employee agreements which
the Board shall in its discretion deem appropriate in
the circumstances). The determination of whether to
waive or impose conditions on the application of this
clause (VIII) shall be within the complete discretion
of the Board but shall be made prior to the Change of
Control.
(g) "Code" has the meaning set forth in Section 3(d) of the Agreement.
(h) "Date of Termination" means the date on which Executive's
employment terminates.
(i) "Disability" has the meaning given it in the Company's long-term
disability plan. Executive's employment shall be deemed to be terminated for
Disability on the date on which Executive is entitled to receive long-term
disability compensation pursuant to such long-term disability plan.
(j) "GDCP" means the Company's General Deferred Compensation Plan, or,
if the General Deferred Compensation Plan is no longer maintained by the
Company, a nonqualified deferred compensation plan (other than the ESP) or
arrangement the terms of which are not less favorable to Executive than the
terms of the General Deferred Compensation Plan as in effect on the Effective
Date.
(k) "ESP" means the Company's Executive Savings Plan.
(l) "Incapacity" means a disability (other than Disability within the
meaning of (i) above) or other impairment of health that renders Executive
unable to perform his duties to the reasonable satisfaction of the Committee.
(m) "LRPIP" has the meaning set forth in Section 3(b) of the Agreement.
(n) "MIP" has the meaning set forth in Section 3(e) of the Agreement.
(o) "SERP" has the meaning set forth in Section 3(f) of the Agreement.
A-3
(p) "Standstill Period" means the period commencing on the date of a
Change of Control and continuing until the close of business on the earlier of
the day immediately preceding the 2008 meeting date or the last business day of
the 24th calendar month following such Change of Control.
(q) "Stock" means the common stock, $1.00 par value, of the Company.
(r) "Stock Incentive Plan" has the meaning set forth in Section 3(b) of
the Agreement.
(s) "Subsidiary" means any corporation in which the Company owns,
directly or indirectly, 50% or more of the total combined voting power of all
classes of stock.
(t) "2008 meeting date" has the meaning set forth in Section 1 of the
Agreement.
(u) "Valid Reason" means the voluntary termination by Executive of his
employment (A) within one hundred and twenty (120) days after the occurrence
without Executive's express written consent of any one of the events described
in clauses (I), (II), (III), (IV), or (V) below, provided, that Executive gives
notice to the Company at least thirty (30) days in advance requesting that the
pertinent situation described therein be remedied, and the situation remains
unremedied upon expiration of such 30-day period; or (B) within one hundred and
twenty (120) days after the occurrence without Executive's express written
consent of the event described in clause (VI) below:
(I) the assignment to him of any duties inconsistent with
his positions, duties, responsibilities, reporting
requirements, and status with the Company immediately
prior to such assignment, or a substantive change in
Executive's titles or offices as in effect immediately
prior to such assignment, or any removal of Executive
from or any failure to reelect him to such positions,
except in connection with the termination of
Executive's employment by the Company for Cause or by
Executive other than for Valid Reason, or any other
action by the Company which results in a diminishment
in such position, authority, duties or
responsibilities, other than an insubstantial and
inadvertent action which is remedied by the Company
promptly after receipt of notice thereof given by
Executive; or
(II) the failure of the Company to continue in effect any
benefits or perquisites, or any pension, life
insurance, medical insurance or disability plan in
which Executive was participating immediately prior to
such failure unless the Company provides Executive
with a plan or plans that provide substantially
similar benefits, or the taking of any action by the
Company that would adversely affect Executive's
benefits under any of such plans or deprive Executive
of any material fringe benefit enjoyed by Executive
immediately prior to such action, unless the
elimination or reduction of any such benefit,
perquisite or plan affects all other executives in the
same organizational level (it being the Company's
burden to establish this fact); or
A-4
(III) any purported termination of Executive's employment by
the Company for Cause which is not effected in
compliance with paragraph (d) above; or
(IV) any relocation of Executive of more than forty (40)
miles from the place where Executive was located at
the time of such relocation; or
(V) any other breach by the Company of any provision of
this Agreement; or
(VI) the Company sells or otherwise disposes of, in one
transaction or a series of related transactions,
assets or earning power aggregating more than 30% of
the assets (taken at asset value as stated on the
books of the Company determined in accordance with
generally accepted accounting principles consistently
applied) or earning power of the Company (on an
individual basis) or the Company and its Subsidiaries
(on a consolidated basis) to any other Person or
Persons (as those terms are defined in Exhibit B).
A-5
EXHIBIT B
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 1(a) of the Current Report
on Form 8-K 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 no transaction shall be deemed to be a Change of Control
(i) if the person or each member of a group of persons acquiring control is
excluded from the definition of the term "Person" hereunder or (ii) unless the
Committee shall otherwise determine prior to such occurrence, if Executive or an
Executive Related Party is the Person or a member of a group constituting the
Person acquiring control; 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 at least 1/4 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 if Executive or an Executive 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 at least 1/4 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 the 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 if, immediately
after such transaction, Executive or any Executive 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 Executive and any Executive Related Party immediately prior
to such transaction, expressed as a percentage of the fair value of all equity
securities of the Company immediately prior to such transaction (for purposes of
this paragraph ownership of equity securities shall be determined in the same
manner as
B-1
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 such approval is
secured (but upon any such approval, 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 B 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.
An "Executive Related Party" shall mean any affiliate or associate of
Executive other than the Company or a majority-owned 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).
B-2
EXHIBIT C
Change of Control Benefits
C.1. Benefits Upon a Change of Control Termination.
(a) The Company shall pay the following to Executive in a lump sum
within thirty (30) days following a Change of Control Termination:
(i) an amount equal to (A) two times his Base Salary for one
year at the rate in effect immediately prior to the Date of Termination
or the Change of Control, whichever is higher, plus (B) the accrued and
unpaid portion of his Base Salary through the Date of Termination,
subject to the following. If Executive is eligible for long-term
disability compensation benefits under the Company's long-term
disability plan or any successor Company long-term disability plan, the
amount payable under (A) shall be reduced by the annual long-term
disability compensation benefit for which Executive is eligible under
such plan for the two-year period over which the amount payable under
(A) is measured. If for any period Executive receives long-term
disability compensation payments under a long-term disability plan of
the Company as well as payments under the first sentence of this clause
(i), and if the sum of such payments (the "combined Change of
Control/disability benefit") exceeds the payment for such period to
which Executive is entitled under the first sentence of this clause (i)
(determined without regard to the second sentence of this clause (i)),
he shall promptly pay such excess in reimbursement to the Company;
provided, that in no event shall application of this sentence result in
reduction of Executive's combined Change of Control/disability benefit
below the level of long-term disability compensation payments to which
Executive is entitled under the long-term disability plan or plans of
the Company.
(ii) in lieu of any other benefits under SERP, an amount equal
to the present value of the payments that Executive would have been
entitled to receive under SERP as a Category B or C participant,
whichever is greater, applying the following rules and assumptions:
(A) the monthly benefit under SERP, determined using
the foregoing criteria and further adjusted pursuant to
Section 3(f) of the Agreement if Executive's Change of Control
Termination occurs on or after his attainment of age 55, shall
be multiplied by twelve (12) to determine an annual benefit;
and
(B) the present value of such annual benefit shall be
determined by multiplying the result in (A) by the appropriate
actuarial factor, using the most recently published interest
and mortality rates published by the Pension Benefit Guaranty
Corporation which are effective for plan terminations
occurring on the Date of Termination, using Executive's age to
the nearest year determined as of that date. If, as of the
Date of Termination, the Executive has previously satisfied
the eligibility requirements for Early Retirement under The
TJX Companies, Inc. Retirement Plan, then the appropriate
factor shall be that based on the most recently published
"PBGC Actuarial Value of $1.00 Per Year Deferred to Age 60
C-1
and Payable for Life Thereafter -- Healthy Lives," except that
if the Executive's age to the nearest year is more than sixty
(60), then such higher age shall be substituted for sixty
(60). If, as of the Date of Termination, the Executive has not
satisfied the eligibility requirements for Early Retirement
under The TJX Companies, Inc. Retirement Plan, then the
appropriate factor shall be based on the most recently
published "PBGC Actuarial Value of $1.00 Per Year Deferred To
Age 65 And Payable For Life Thereafter -- Healthy Lives."
(C) the benefit determined under (B) above shall be
reduced by the value of any portion of Executive's SERP
benefit already paid or provided to him in cash or through the
transfer of an annuity contract.
(b) Until the second anniversary of the Date of Termination, the
Company shall maintain in full force and effect for the continued benefit of
Executive and his family all life insurance and medical insurance plans and
programs in which Executive was entitled to participate immediately prior to the
Change of Control, provided, that Executive's continued participation is
possible under the general terms and provisions of such plans and programs. In
the event that Executive is ineligible to participate in such plans or programs,
the Company shall arrange upon comparable terms to provide Executive with
benefits substantially similar to those which he is entitled to receive under
such plans and programs. Notwithstanding the foregoing, the Company's
obligations hereunder with respect to life or medical coverage or benefits shall
be deemed satisfied to the extent (but only to the extent) of any such coverage
or benefits provided by another employer.
(c) For a period of two years after the Date of Termination, the
Company shall make available to Executive the use of any automobile that was
made available to Executive prior to the Date of Termination, including ordinary
replacement thereof in accordance with the Company's automobile policy in effect
immediately prior to the Change of Control (or, in lieu of making such
automobile available, the Company may at its option pay to Executive the present
value of its cost of providing such automobile).
C.2. Incentive Benefits Upon a Change of Control. Within thirty (30)
days following a Change of Control, whether or not Executive's employment has
terminated or been terminated, the Company shall pay to the Executive, in a lump
sum, the sum of (i) and (ii), where:
(i) is the sum of (A) the "Target Award" under the Company's
Management Incentive Plan or any other annual incentive plan which is
applicable to Executive for the fiscal year in which the Change of
Control occurs, plus (B) an amount equal to such Target Award prorated
for the period of active employment during such fiscal year through the
Change of Control; and
(ii) the sum of (A) for Performance Cycles not completed prior
to the Change of Control, an amount with respect to each such cycle
equal to the maximum Award under LRPIP specified for Executive for such
cycle, plus (B) any unpaid amounts owing with respect to cycles
completed prior to the Change of Control.
C-2
C.3. Gross-Up Payment. Payments under Section C.1. and Section C.2. of
this Exhibit shall be made without regard to whether the deductibility of such
payments (or any other payments or benefits to or for the benefit of Executive)
would be limited or precluded by Section 280G of the Code ("Section 280G") and
without regard to whether such payments (or any other payments or benefits)
would subject Executive to the federal excise tax levied on certain "excess
parachute payments" under Section 4999 of the Code (the "Excise Tax"). If any
portion of the payments or benefits to or for the benefit of Executive
(including, but not limited to, payments and benefits under this Agreement but
determined without regard to this paragraph) constitutes an "excess parachute
payment" within the meaning of Section 280G (the aggregate of such payments
being hereinafter referred to as the "Excess Parachute Payments"), the Company
shall promptly pay to Executive an additional amount (the "gross-up payment")
that after reduction for all taxes (including but not limited to the Excise Tax)
with respect to such gross-up payment equals the Excise Tax with respect to the
Excess Parachute Payments. The determination as to whether Executive's payments
and benefits include Excess Parachute Payments and, if so, the amount of such
payments, the amount of any Excise Tax owed with respect thereto, and the amount
of any gross-up payment shall be made at the Company's expense by
PricewaterhouseCoopers LLP or by such other certified public accounting firm as
the Committee may designate prior to a Change of Control (the "accounting
firm"). Notwithstanding the foregoing, if the Internal Revenue Service shall
assert an Excise Tax liability that is higher than the Excise Tax (if any)
determined by the accounting firm, the Company shall promptly augment the
gross-up payment to address such higher Excise Tax liability.
C.4. Other Benefits. In addition to the amounts described in Sections
C.1., C.2., and C.3. Executive shall be entitled to his benefits, if any, under
Sections 3(b)(i) (Existing Options) and 3(c) (New Stock Awards), and to payment
of his vested benefits under the plans described in 3(g) (Qualified Plans; Other
Deferred Compensation Plans).
C.5. Noncompetition; No Mitigation of Damages; etc.
(a) Noncompetition. Upon a Change of Control, any agreement by
Executive not to engage in competition with the Company subsequent to the
termination of his employment, whether contained in an employment contract or
other agreement, shall no longer be effective.
(b) No Duty to Mitigate Damages. Executive's benefits under this
Exhibit C shall be considered severance pay in consideration of his past service
and his continued service from the date of this Agreement, and his entitlement
thereto shall neither be governed by any duty to mitigate his damages by seeking
further employment nor offset by any compensation which he may receive from
future employment.
(c) Legal Fees and Expenses. The Company shall pay all legal fees and
expenses, including but not limited to counsel fees, stenographer fees, printing
costs, etc. reasonably incurred by Executive in contesting or disputing that the
termination of his employment during a Standstill Period is for Cause or other
than for good reason (as defined in the definition of Change of Control
Termination) or obtaining any right or benefit to which Executive is entitled
under this Agreement following a Change of Control. Any amount payable under
this Agreement that is not paid when due shall accrue interest at the prime rate
as from time to time in effect at Fleet National Bank, or its successor, until
paid in full.
C-3
(d) Notice of Termination. During a Standstill Period, Executive's
employment may be terminated by the Company only upon thirty (30) days' written
notice to Executive.
C-4
