Document:

exhibit10712.htm

EXHIBIT 10.7.12

JOINDER, ASSUMPTION, AND FIFTH MODIFICATION AGREEMENT

THIS JOINDER, ASSUMPTION, AND FIFTH MODIFICATION AGREEMENT (this "Agreement") is made effective as of May 20, 2011, by and among (a) TESSCO TECHNOLOGIES INCORPORATED, a Delaware corporation (“TESSCO”), TESSCO SERVICE SOLUTIONS, INC., a Delaware corporation, TESSCO INCORPORATED, a Delaware corporation, TESSCO COMMUNICATIONS INCORPORATED, a Delaware corporation, WIRELESS SOLUTIONS INCORPORATED, a Maryland corporation, TESSCO BUSINESS SERVICES, LLC, a Delaware limited liability company, TESSCO INTEGRATED SOLUTIONS, LLC, a Delaware limited liability company, and GW SERVICE SOLUTIONS, INC., a Delaware corporation (the aforementioned entities, including TESSCO, being hereinafter called collectively the “Existing Borrowers”); (b) TCPM INC., a Delaware corporation (the “Additional Borrower”) (the Existing Borrowers and the Additional Borrower being hereinafter called collectively the “Borrowers”); (c) SUNTRUST BANK and WELLS FARGO BANK, N.A (successor to WACHOVIA BANK, NATIONAL ASSOCIATION), as Lenders (in such capacity, the “Lenders”); and (d) SUNTRUST BANK, as Administrative Agent (in such capacity, the “Agent”).

RECITALS

Pursuant to a Credit Agreement dated as of May 31, 2007 by and among the Existing Borrowers and other then existing borrowers, the Lenders, and the Agent (as the same may from time to time be amended, restated, supplemented, or otherwise modified, the “Credit Agreement”), the Lenders agreed to make available to the Existing Borrowers and other then existing borrowers a revolving credit facility pursuant to which the Lenders would make loans and other credit accommodations (collectively, the “Loans”) to or for the benefit of the Existing Borrowers and other then existing borrowers in an aggregate principal amount not to exceed $50,000,000 at any one time outstanding (as increased or decreased, the “Revolving Credit Facility”).  The Existing Borrowers’ obligation to repay the Loans with interest is evidenced by the Borrowers’ Revolving Credit Note dated May 31, 2007 from the Existing Borrowers made payable to the Lenders in the principal amount of up to $50,000,000 (as the same may from time to time be amended, restated, supplemented, or otherwise modified, the “Note”).

As used herein, the term "Loan Documents" means collectively, the Credit Agreement, the Note, and all other documents now or hereafter executed and delivered by the Borrowers or any other party or parties to evidence, secure, or guarantee, or in connection with, the Revolving Credit Facility.

Pursuant to a First Modification Agreement dated as of June 30, 2008, the parties agreed to make certain changes to the Credit Agreement.

Pursuant to a Second Modification Agreement dated as of November 26, 2008, the parties agreed to amend certain financial covenants and make certain other changes to the Credit Agreement.

With the knowledge and consent of the Lenders, certain previously existing borrowers engaged in an internal restructuring (the “Internal Restructuring”) which resulted in TESSCO Integrated Solutions, L.P., a Delaware limited partnership, being converted into a Delaware limited liability company, now known as TESSCO Integrated Solutions, LLC, and pursuant to which TESSCO Supply Chain Services, LLC and TESSCO Product Solutions, LLC, each a Delaware limited liability company, each merged into TESSCO Service Solutions, Inc., a Delaware corporation, thereby terminating the existence of the two limited liability companies.

Pursuant to a Third Modification Agreement dated as of July22, 2009, the parties agreed (a) to decrease the maximum principal amount of the Revolving Credit Facility, (b) to modify certain financial covenants, and (c) to make certain additional modifications to the Loan Documents (including modifications providing for the extension of the term of the Revolving Credit Facility).

Pursuant to a Fourth Modification Agreement dated as of April 28, 2010, the parties agreed to amend certain covenants and make certain other changes to the Credit Agreement.

The Borrowers have now , in accordance with the terms of the Credit Agreement, notified Lenders of the formation of the Additional Borrower and have requested that the Lenders and the Agent permit the Additional Borrower to assume, jointly and severally, with the Existing Borrowers the obligations of the Existing Borrowers under the Loan Documents, and the Lenders and the Agents have agreed to do so, subject to and upon the terms and conditions hereinafter set forth.

  

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AGREEMENTS

Now, therefore, in consideration of the premises and the mutual agreements herein contained, and for other good and valuable consideration, receipt of which is hereby acknowledged, the parties hereto agree as follows:

1.           Recitals; Defined Terms.  The parties hereto acknowledge that the above Recitals are true and correct and agree that the same are incorporated herein.  Unless the context clearly indicates otherwise, each term used in this Agreement which is defined in the Recitals shall have the meaning given to such term in the Recitals, and each capitalized term used herein which is not otherwise defined herein shall have the meaning given to such term in the Credit Agreement.

2.           Joinder and Assumption.   The Additional Borrower hereby joins in and assumes all of the Obligations jointly and severally with the Existing Borrowers, and the Additional Borrower hereby covenants, promises and agrees jointly and severally with the Existing Borrowers, (a) to pay to the Agent for the account of the Lenders, the principal of and interest on the Note, and all other sums payable thereunder, at the times, in the manner, and in all respects as therein provided; (b) to perform and comply with all of the terms, covenants, agreements and obligations to be performed by the Existing Borrowers under the Note, the Credit Agreement, and all other Loan Documents at the times, in the manner, and in all respects as therein provided; and (c) to be bound by each and all of the terms, covenants, agreements and obligations of the Note, the Credit Agreement, and all other Loan Documents as though said documents had originally been made, executed, and delivered by the Existing Borrowers and the Additional Borrower.

3.           Representations and Warranties.  In order to induce the Lenders and the Agent to enter into this Agreement, the Borrowers represent and warrant to the Lenders and the Agent that as of the date hereof (a) no Event of Default exists under the provisions of the Loan Documents, (b) except as to matters of which the Borrowers have advised the Agent in a writing and which have been acknowledged by the Agent, all of the representations and warranties of the Borrowers in the Loan Documents are true and correct on the date hereof as if the same were made on the date hereof (provided that any representation or warranty that speaks “as of the Closing Date” or as of any other specific date shall continue to speak as of such date, notwithstanding), (c) no material adverse change has occurred in the business, financial condition, prospects or operations of the Borrowers since the date of the most recent financial statement of the Borrowers furnished to the Lenders and the Agent in accordance with the provisions of the Loan Documents, and (d) this Agreement constitutes the legal, valid and binding obligation of the Borrowers, jointly and severally enforceable in accordance with its terms, except as such enforcement may be limited by bankruptcy, insolvency, reorganization, moratorium or similar state or federal debtor relief laws from time to time in effect which affect the enforcement of creditors’ rights in general and the availability of equitable remedies.  If any of the foregoing representations and warranties shall prove to be false, incorrect or misleading in any material respect, the Lenders and the Agent may, in their absolute and sole discretion, declare that a default has occurred and exists under the provisions of the Loan Documents, and the Lenders and the Agent shall be entitled to all of the rights and remedies set forth in the Loan Documents as the result of the occurrence of such default.

  

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4.           Ratification and No Novation.  The Borrowers hereby ratify and confirm all of their obligations, liabilities and indebtedness under the provisions of the Credit Agreement, the Note, and the other Loan Documents, as the same may be amended and modified by this Agreement.  The Lenders, the Agent, and the Borrowers agree that it is their intention that nothing herein shall be construed to extinguish, release or discharge or constitute, create or effect a novation of, or an agreement to extinguish any of the obligations, indebtedness and liabilities of the Borrowers or any other party under the provisions of the Loan Documents.  The Borrowers agree that all of the provisions of the Credit Agreement and the other Loan Documents shall remain and continue in full force and effect as the same may be modified and amended by this Agreement.  In the event of any conflict between the provisions of this Agreement and the provisions of the Loan Documents, the provisions of this Agreement shall control.

5.           Fees, Costs and Expenses.  In consideration of the agreement of the Lenders to enter into this Agreement, the Borrowers shall pay to the Agent and the Lenders on demand all costs and expenses both now and hereafter reasonably paid or incurred with respect to the preparation, negotiation, execution, administration and enforcement of this Agreement and all documents related thereto, including, without limitation, reasonable attorney's fees and expenses, recording costs and costs of record searches.

6.           Applicable Law.  This Agreement shall be construed in accordance with and governed by the laws of the State of Maryland.

7.           Binding Effect.  This Agreement shall be binding upon and inure to the benefit of the Lenders, the Agent, and the Borrowers, and their respective successors and assigns.

[Remainder of Page Intentionally Left Blank]

 

  

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           IN WITNESS WHEREOF, the parties hereto have each caused this Agreement to be executed and sealed, the day and year first above written.

	
WITNESS:

	
BORROWERS:

 

	 	 	 	TESSCO TECHNOLOGIES INCORPORATED	 
	
/s/David Young                             

	 	 	
/s/ Robert B. Barnhill, Jr            

	 
	 	 	 	
Robert B. Barnhill, Jr.

	 
	
 

	 	 	
President and Chief Executive Officer

	 

 

	 	 	 	TESSCO SERVICE SOLUTIONS, INC.	 
	
/s/David Young                             

	 	 	
/s/ Robert B. Barnhill, Jr            

	 
	 	 	 	
Robert B. Barnhill, Jr.

	 
	
 

	 	 	
President

	 

 

	 	 	 	

TESSCO INCORPORATED

	 
	
/s/David Young                             

	 	 	
/s/ Robert B. Barnhill, Jr            

	 
	 	 	 	
Robert B. Barnhill, Jr.

	 
	
 

	 	 	
President 

	 

	 	 	 	TESSCO COMMUNICATIONS INCORPORATED	 
	
/s/David Young                             

	 	 	
/s/ Robert B. Barnhill, Jr            

	 
	 	 	 	
Robert B. Barnhill, Jr.

	 
	
 

	 	 	
President 

	 

 

	 	 	 	

WIRELESS SOLUTIONS INCORPORATED

	 
	
/s/David Young                             

	 	 	
/s/ Robert B. Barnhill, Jr            

	 
	 	 	 	
Robert B. Barnhill, Jr.

	 
	
 

	 	 	
President 

	 

 

  

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TESSCO BUSINESS SERVICES, LLC

	 
	
/s/David Young                             

	 	 	
/s/ Robert B. Barnhill, Jr            

	 
	 	 	 	
Robert B. Barnhill, Jr.

	 
	
 

	 	 	
President 

	 

 

	 	 	 	

TESSCO INTEGRATED SOLUTIONS, LLC

	 
	
/s/David Young                             

	 	 	
/s/ Robert B. Barnhill, Jr            

	 
	 	 	 	
Robert B. Barnhill, Jr.

	 
	
 

	 	 	
President 

	 

 

	 	 	 	

GW SERVICE SOLUTIONS, INC.

	 
	
/s/David Young                             

	 	 	
/s/ Robert B. Barnhill, Jr            

	 
	 	 	 	
Robert B. Barnhill, Jr.

	 
	
 

	 	 	
President 

	 

 

	 	 	 	

TCPM INC.

	 
	
/s/David Young                             

	 	 	
/s/ Robert B. Barnhill, Jr             (Seal)

	 
	 	 	 	
Robert B. Barnhill, Jr.

	 
	
 

	 	 	
President and Chief Executive Officer

	 

[Signatures continue on succeeding page]

  

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LENDERS:

	 	 	 	WELLS FARGO BANK, NATIONAL ASSOCIATION (successor to WACHOVIA BANK, NATIONAL ASSOCIATION)	 
	
[ILLEGIBLE]                       

	 	 	
/s/ David R. Cahouet             (Seal)

	 
	 	 	 	
David R. Cahouet

	 
	
 

	 	 	
Senior Vice President

	 

	 	 	 	SUNTRUST BANK	 
	
[ILLEGIBLE]                       

	 	 	
/s/ Gregory Farno             (Seal)

	 
	 	 	 	
Gregory Farno

	 
	
 

	 	 	
Senior Vice President

	 

	 	
AGENT:

	 	 	 	SUNTRUST BANK	 
	
[ILLEGIBLE]                       

	 	 	
/s/ Gregory Farno             (Seal)

	 
	 	 	 	
Gregory Farno

	 
	
 

	 	 	
Senior Vice President

	 

 

  

-6-c65769_ex10-1.htm -- Converted by SEC Publisher, created by BCL Technologies Inc., for SEC Filing

Exhibit 10.1

FOOT LOCKER LONG-TERM INCENTIVE COMPENSATION PLAN

Amended and Restated as of March 23, 2011

     Effective as of February 1, 1981, the Board of Directors of Foot Locker Specialty, Inc. adopted a Long-Term Incentive Compensation Plan (the “Plan”) for certain executives of Foot Locker
Specialty, Inc. and its subsidiaries. Effective as of August 7, 1989, Foot Locker, Inc. (“Foot Locker”) adopted the Plan, as amended. The Plan has been amended and restated from time to time, and in accordance with the requirements of
“Section 162(m) of the Code” (as defined below), the performance goals under the Plan were initially approved at the 1996 annual meeting of shareholders and were reapproved in 2001 and 2006. The Plan is again amended and restated as of
March 23, 2011 in the form set forth below, subject to shareholder approval of the performance goals set forth herein at the 2011 annual meeting of shareholders. 

     The objectives of the Plan are:

     (a) to reinforce corporate organizational and business-development goals. 

     (b) to promote the achievement of year-to-year
    and long-range financial and other business objectives such as high quality
    of service and product, improved productivity and efficiencies for the benefit
    of our customers’ satisfaction and to assure a reasonable return to Foot Locker’s shareholders. 

     (c) to reward the performance of individual executives in fulfilling their personal responsibilities for long-range achievements. 

     (d) to serve as a qualified performance-based compensation program under Section 162(m) of the Internal Revenue Code of 1986, as amended (the “Code”) or any successor section and the
Treasury regulations promulgated thereunder (“Section 162(m) of the Code”). 

     (e) to award shares of Common Stock (as defined below) after attainment of pre-established performance goals and completion of the Performance Period (as defined below), which shall be considered
“Other Stock-Based Awards” under the Foot Locker 2007 Stock Incentive Plan or other applicable stock incentive plan of the Company (the “Stock Incentive Plan”). 

     1. Definitions. The following terms, as used herein, shall have the following meanings: 

     (a) “Annual
  Base Salary” shall mean the annual base salary approved by the Committee with respect to the executive at the time the performance goals are established by the Committee, as described in Section 5(b) hereof without
    reduction for any amounts withheld pursuant to participation in a “cafeteria plan” under Section 125 of the Code, a cash or deferred arrangement under Section 401(k) of the Code or a qualified transportation arrangement under Section
    132(f) of the Code. Notwithstanding the foregoing in the event of an executive’s promotion during a Performance Period, such 

participant’s Annual Base Salary shall reflect any salary increase paid as a result of the participant’s promotion. 

     (b) “Board” shall mean the Board of Directors of Foot Locker. 

     (c) “Change in Control” shall mean any of the following: (i) the merger or consolidation
of the Company with, or the sale or disposition of all or substantially all of
the assets of the Company to, any person other than (A) a merger or consolidation
which would result in the voting securities of the Company outstanding immediately
prior thereto continuing to represent (either by remaining outstanding or by
being converted into voting securities of the surviving or parent entity) fifty
percent (50%) or more of the combined voting power of the voting securities of
the Company or such surviving or parent entity outstanding immediately after
such merger or consolidation; or (B) a merger or capitalization effected to implement
a recapitalization of the Company (or similar transaction) in which no person
is or becomes the beneficial owner, directly or indirectly (as determined under
Rule 13d-3 promulgated under the Securities Exchange Act of 1934), of securities
representing more than the amounts set forth in (ii) below; (ii) the acquisition
of direct or indirect beneficial ownership (as determined under Rule 13d-3 promulgated
under the Securities Exchange Act of 1934), in the aggregate, of securities of
the Company representing thirty-five percent (35%) or more of the total combined
voting power of the Company’s then issued and outstanding voting securities by any person acting in concert; or (iii) during any period of not more than twelve (12) months, individuals who at the beginning of such period constitute the
Board of Directors of the Company (referred to herein as the “Board”), and any new director whose election by the Board or nomination for election by the Company’s
shareholders was approved by a vote of at least two-thirds (2/3) of the directors then still in office who either were directors at the beginning of the period or whose election or nomination for election was previously so approved, cease for any reason to
constitute at least a majority thereof. 

     (d) “Committee” shall mean two or more members of the Compensation Committee of the Board, each of whom is an “outside
director” within the meaning of Section 162(m) of the Code. 

     (e) “Common Stock” shall mean common stock of Foot Locker, par value $0.01 per share. 

     (f) “Consolidated Net Income” shall mean the net income of Foot Locker and its subsidiaries for each fiscal year determined in
accordance with generally accepted accounting principles and reported upon by Foot Locker’s independent accountants but before provision for accrued expenses net of the related income tax reduction for payments to be made pursuant to this Plan.

     (g) “Fair Market Value” of a share of Common Stock shall mean the average of the closing prices of a share of such Common Stock as
reported on the Composite Tape for the New York Stock Exchange during the sixty (60) day period immediately preceding the payment date relating to the applicable Performance Period. 

     (h) “Individual Target Award” shall mean the targeted performance award for a Plan Year specified by the Committee as provided in
Section 5 herein. 

     (i) “Performance Period” shall mean the period of three consecutive Plan Years or such other period as determined by the Committee,
beginning with the Plan Year in which the award is made. 

     (j) “Plan Year” shall mean Foot Locker’s fiscal year during which the Plan is in effect. 

     2. Administration of the Plan. The Plan shall be administered by the Committee. No member of the Committee while serving as such shall
be eligible for participation in the Plan. The Committee shall have exclusive and final authority in all determinations and decisions affecting the Plan and its participants. The Committee shall also have the sole authority to interpret the Plan, to
establish and revise rules and regulations relating to the Plan, to delegate such responsibilities or duties as it deems desirable, and to make any other determination that it believes necessary or advisable for the administration of the Plan
including, but not limited to: (i) approving the designation of eligible participants; (ii) setting the performance criteria within the Plan guidelines; and (iii) certifying attainment of performance goals and other material terms. To the extent any
provision of the Plan, other than Section 7 herein, creates impermissible discretion under Section 162(m) of the Code or would otherwise violate Section 162(m) of the Code, such provision shall have no force or effect. 

     3. Participation. Participation in the Plan is limited to officers or other key employees of Foot Locker or any subsidiary thereof, as
selected by the Committee in its sole discretion. The Committee may from time to time designate additional participants who satisfy the criteria for participation as set forth herein, and shall determine when an officer or key employee of Foot
Locker ceases to be a participant in the Plan. 

     4. Right to Payment. Unless otherwise determined by the Committee in its sole discretion, a participant shall have no right to receive
payment under this Plan unless the participant remains in the employ of Foot Locker at all times during the applicable Performance Period; provided, however, that notwithstanding any other provision of the Plan, the Committee may make a pro-rata
payment following the end of the Performance Period to any participant in circumstances the Committee deems appropriate including, but not limited to a participant’s death, disability, retirement, or other termination of employment during the
Performance Period, provided the performance goals for the Performance Period are met. Furthermore, upon a Change in Control the Committee may, in its sole discretion, but only to the extent permitted under Section 162(m) of the Code (if
applicable), make a payment to any participant who is a participant at the time of such Change in Control, on the date of the Change in Control, or as soon as practicable thereafter, and prior to the end of the Performance Period (to the extent
determinable), which is equal to or less than the pro-rata portion (through the date of the Change in Control) of the Individual Target Award based on (a) the actual performance results achieved relative to the Performance Period’s performance
goals with respect to the period from the commencement of the Performance Period to the date of the Change in Control, and (b) the performance results that would have been achieved had the Performance Period’s Target been met for the balance of
such Performance Period. Any pro-ration required hereunder shall be based on a fraction, the numerator of which is the number of months completed before the termination of employment or Change in 

Control, as the case may be, and the denominator of which is the number of months in the Performance Period. 

     5. Payment.

     (a) Payment to a participant under this Plan for each Performance Period shall be made in cash, shares of the Company’s Common Stock, or any combination thereof, as determined by the Committee
for each Performance Period. If payment is to be made in shares of the Company’s Common Stock, the number of shares of Common Stock shall be determined by the Committee by dividing the achieved percentage of such participant’s Annual Base
Salary payable in Common Stock (as determined by the Committee for each Performance Period) by the Fair Market Value of the Common Stock on the date of payment as determined in accordance with Section 4 or 6 herein. Such achieved percentage shall be
based on the participant’s achievement of his or her Individual Target Award. Except to the extent provided for in Section 4 hereof, payment shall be made only if and to the extent the relevant performance goals with respect to the Performance
Period are attained. Awards of Common Stock made pursuant to this Plan are Other Stock-Based Awards (as defined in the Stock Incentive Plan) and are issued under and subject to, the applicable provisions of the Stock Incentive Plan including,
without limitation, Section 9 (Other Stock-Based Awards) and Section 5 (Stock Subject to the Plan; Limitation on Grants). In the event that any payment results in other than a whole number of shares of Common Stock, the value of the fractional share
of Common Stock shall be paid in cash. 

     (b) At the beginning of each Performance Period (or within the time period prescribed by Section 162(m) of the Code), the Committee shall establish all performance goals and the Individual Target
Awards for such Performance Period and Foot Locker shall inform each participant of the Committee’s determination with respect to such participant for such Performance Period. Individual Target Awards shall be expressed as a percentage of such
participant’s Annual Base Salary. At the time the performance goals are established, the Committee shall prescribe a formula to determine the percentage of the Individual Target Award which may be payable based upon the degree of attainment of
the performance goals during the Performance Period. 

     (c) Notwithstanding anything to the contrary contained in this Plan, 

          (1) the performance goals in respect of awards
  granted to participants hereunder, shall be based on one or more of the following
  criteria: 

               (i) the attainment of certain target levels
    of, or percentage increase in, pre-tax profit; 

               (ii) the attainment of certain
  target levels of, or percentage increase in, division profit; 

               (iii) the attainment
  of certain target levels of, or a percentage increase in, after-tax profits
  of Foot Locker (or a subsidiary, division, or other operational unit of Foot
  Locker); 

               (iv) the attainment of certain target levels of, or a specified increase in, operational cash flow of Foot Locker (or a subsidiary, division, or other operational unit of Foot Locker); 

               (v) the
  achievement of a certain level of, reduction of, or other specified objectives
    with regard to limiting the level of increase in, all or a portion of, Foot
    Locker’s bank debt or other long-term or short-term public or private debt or other
  similar financial obligations of Foot Locker, if any, which may be calculated net of such cash balances and/or other offsets and adjustments as may be established by the Committee; 

               (vi) the attainment of a specified percentage
    increase in earnings per share or earnings per share from continuing operations
    of Foot Locker (or a subsidiary, division or other operational unit of Foot
  Locker); 

               (vii) the attainment of certain target levels
    of, or a specified percentage increase in, revenues, net income, or earnings
    before (A) interest, (B) taxes, (C) depreciation and/or (D) amortization,
    of Foot Locker (or a subsidiary, division, or other operational unit of Foot
  Locker); 

               (viii) the attainment of certain target levels
    of, or a specified increase in, return on invested capital or return on investment;
  

               (ix) the attainment of certain target levels
    of, or a percentage increase in, after-tax or pre-tax return on shareholders’ equity of Foot Locker (or any subsidiary, division or
other operational unit of Foot Locker); 

               (x) the attainment of a certain target
    level of, or reduction in, selling, general and administrative expense as
    a percentage of revenue of Foot Locker (or any subsidiary, division or other
operational unit of Foot Locker); and 

               (xi) the attainment of a certain target
  level of, or percentage increase in, Consolidated Net Income. 

     In addition, performance goals may be based upon the attainment of specified levels of Foot Locker (or a subsidiary, division or other operational unit of Foot Locker) performance under one or more of
the measures described above relative to the performance of other corporations. The Committee may designate additional business criteria on which the performance goals may be based or adjust, modify, or amend those criteria. 

          (2) To the extent permitted under Section 162(m) of the Code, unless otherwise determined by the Committee at the time the performance goals are set and incorporated into the performance goals, the
Committee shall exclude the impact of any of the following events or occurrences: 

               (i) restructurings, discontinued operations,
    extraordinary items and other unusual or non-recurring charges; 

               (ii) any
  acquisition or divestiture of an operating business during the Plan Year
  or Performance Period; 

               
(iii) impairment charges taken under relevant accounting rules; 

               (iv) an event either not directly related to the operations of the Company or not within the reasonable control of the Company’s management; or 

               (v) a change in tax law or accounting standards
    required by generally accepted accounting principles. 

          (3) in no event shall payment in respect of an award granted for a Performance Period be made to a participant as of the end of such Performance Period in a dollar value which exceeds the lesser of
(i) 300% of such participant’s Annual Base Salary or (ii) $5,000,000. 

     6. Time of Payment. Subject to Section 4 herein, all payments earned by participants under this Plan shall be based on the achievement
of performance goals established by the Committee and will be paid in accordance with Section 5 herein after performance goal achievements for the Performance Period have been finalized, reviewed, approved and certified by the Committee, but in no
event later than two and one-half months following the end of the fiscal year for the last year of the applicable Performance Period. Foot Locker’s independent accountants shall examine as of the close of the Performance Period and communicate
the results of such examination to the Committee as to the appropriateness of the proposed payments under the Plan. 

     7. Interim Participation. Notwithstanding anything else herein, the Committee may, in its sole discretion, grant an award hereunder to
a participant who commences employment with Foot Locker during a Plan Year. Such award is not required to satisfy the exception for performance-based compensation set forth in Section 162(m) of the Code. 

     
8. Miscellaneous Provisions. 

     (a) A participant’s rights and interests under the Plan may not be sold, assigned, transferred, pledged or alienated. 

     (b) In the case of a participant’s death, payment, if any, under the Plan shall be made to his or her designated beneficiary, or in the event no beneficiary is designated or surviving, to the
participant’s estate. 

     (c) Neither this Plan nor any action taken hereunder shall be construed as giving any employee any right to be retained in the employ of Foot Locker. 

     (d) Foot Locker shall have the right to make such provisions as it deems necessary or appropriate to satisfy any obligations it may have to withhold federal, state or local income or other taxes
incurred by reason of payments made pursuant to this Plan. 

     (e) Except with regard to an award made pursuant to Section 7 herein, the Plan is designed and intended to comply with Section 162(m) of the Code and all provisions hereof shall be limited, construed
and interpreted in a manner to so comply. 

     (f) While Foot Locker does not guarantee any particular tax treatment, the Plan is designed and intended to comply with the short-term deferral rules under Section 409A of the Code and the applicable
regulations thereunder and shall be limited, construed and 

interpreted with such intent. All amounts payable under the Plan shall be payable within the short-term deferral period in accordance with Section 409A and regulations issued thereunder. 

     (g) The Board or the Committee may at any time and from time to time alter, amend, suspend or terminate the Plan in whole or in part; provided, that, no amendment which requires shareholder approval
in order for the Plan to continue to comply with the exception for performance based compensation under Section 162(m) of the Code shall be effective unless the same shall be approved by the requisite vote of the shareholders of Foot Locker as
determined under Section 162(m) of the Code. Notwithstanding the foregoing, no amendment shall affect adversely any of the rights of any participant, without such participant’s consent, under the award theretofore granted under the Plan.

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