Document:

<PAGE>
                                                                   EXHIBIT 10.50

                                                                February 5, 2003

Ms. Janet G. Kelley
533 Wallace Street
Birmingham, Michigan  48009

Dear Janet:

         This letter ("Amended Letter") serves to amend and restate that certain
letter to you dated January 15, 2003 (the "January 15 Letter"), and evidences
the current position of Kmart Corporation (the "Company") with respect to the
termination of your employment, pending any subsequent determination by the
Company of its rights and obligations relating to your termination.

1.       Termination. Your employment with the Company terminated effective
         January 16, 2003 (the "Termination Date").

2.       Compliance with Agreement. The Company expects that you will comply in
         all respects with your obligations (other than noncompetition
         obligations) under your Special Retention Agreement dated December 7,
         2001 (the "2001 Agreement").

3.       Return of Company Property. You represent that, except as noted below,
         you have returned to the Company all property of the Company or its
         subsidiary or affiliates which was in your possession, including, but
         not limited to, customers or client lists, documents, contracts,
         agreements, plans, photographs, books, notes, memoranda, manuals,
         records, electronically stored data, proprietary computer software,
         source codes, algorithms and all copies of the foregoing, as well as
         any laptop or other computer hardware, automobile or other materials or
         equipment supplied by the Company to you. The Company agrees that you
         and/or your counsel may retain certain documents, copies of which have
         been provided to the Company and/or its counsel, that are necessary for
         purposes of your providing testimony in connection with matters
         relating to the Company's stewardship investigation and investigation
         of its accounting and financial statements.

4.       Reservation of Rights. The Company reserves all of its rights relating
         to your termination, including, without limitation, the right of the
         Company to characterize your termination in a particular manner for
         purposes of the 2001 Agreement, the promissory note dated December 7,
         2001, relating to a $500,000 loan to you from the Company (the "Loan"),
         and any other agreement, plan or arrangement between you and the
         Company.

<PAGE>

5.       Severance. Provided you shall have fully repaid the principal amount of
         the Loan by no later than February 6, 2003, and provided that (i) you
         execute the enclosed copy of this letter and the enclosed Release and
         return them to the Company by February 6, 2003, (ii) you do not revoke
         the Release and (iii) you are and remain in compliance with your
         obligations under this letter, the Company will pay to you as severance
         a monthly sum, less applicable withholding (including withholding with
         respect to forgiveness of accrued interest on the Loan), in an amount
         equal to your monthly salary as in effect on the Termination Date and
         will pay a monthly COBRA subsidy on your behalf and will provide
         outplacement services. Such payments will commence as soon as
         practicable following expiration of the revocation period applicable to
         the Release (the initial payment will cover the period from January 17,
         2003 through the date of payment) and, subject to the provisions
         hereof, shall be made for a period of 24 months (except that
         outplacement services will be provided for up to one year). These
         monthly payments shall be reduced by the amount of compensation you
         earn from subsequent employment (including self-employment) and you
         shall promptly notify the Company of any such compensation. Further,
         the Company reserves the right to terminate these monthly payments at
         any time upon ten (10) days' notice to you and to seek repayment by you
         of any amounts previously paid by the Company pursuant to the preceding
         sentence if, based on the results of its current stewardship
         investigation and investigation of its accounting and financial
         statements, the Company determines that your employment was terminated
         by the Company for Cause (as such term is defined in the 2001
         Agreement).

6.       Consulting with Counsel. The Company has advised you to consult with an
         attorney of your choosing prior to signing this letter. You represent
         that you understand and agree that you have the right and have been
         given the opportunity to review this letter with an attorney. You
         further represent that you understand and agree that the Company is
         under no obligation to offer this letter to you and that you have
         executed this letter freely and voluntarily.

7.       Governing Law. This letter shall be governed by and construed and
         enforced in accordance with the laws of the State of Michigan, applied
         without reference to principles of conflicts of laws.

                                             KMART CORPORATION

                                             By: ___________________________
                                                  Julian Day
                                                  President and Chief Executive
                                                   Officer
         ACCEPTED AND AGREED TO:

         ___________________________
                  Janet G. Kelley

         Dated:<PAGE>
                                                                   EXHIBIT 10.51

                             COVENANT NOT TO SUE AND
                     FULL AND COMPLETE RELEASE OF LIABILITY

         1.    In consideration of the payments and benefits set forth in
Section 5 of the Letter Agreement into between Kmart Corporation ("Kmart") and
the undersigned, dated February 5, 2003 (the "Agreement") and the covenants
contained herein, the undersigned (hereinafter referred to as the "Releasor")
hereby releases and forever discharges Kmart and any related or affiliated
companies or divisions and their current or former directors, officers,
employees, and agents (hereinafter referred to collectively as the "Company
Releasees") from any and all actions, causes of action, suits, controversies,
claims and demands whatsoever, for or by reason of any matter, cause or thing
whatsoever, which the Releasor, her heirs, executors, administrators and assigns
may have had or may not have, whether known or unknown, which has or may have
arisen out of any act or omission occurring on or prior to the date of the
execution of this Covenant Not To Sue and Full and Complete Release of Liability
("Release"), including, but not limited to, all claims arising under or in
connection with the Michigan Elliott-Larsen Civil Rights Act, as amended,
Michigan Whistle Blowers' Protection Act, as amended, the Michigan Persons With
Disabilities Civil Rights Act, as amended, Age Discrimination in Employment Act
of 1967, as amended, Americans With Disabilities Act of 1990, as amended, Title
VII of the Civil Rights Act of 1964, as amended, Civil Rights Act of 1991, as
amended, Employee Retirement Income Security Act of 1974 ("ERISA"), as amended,
Older Workers Benefit Protection Act of 1990, as amended, the Worker Adjustment
Retraining and Notification Act, the Fair Labor Standards Act, as amended, the
Family & Medical Leave Act of 1993, as amended, the common law of the State of
Michigan, for tort, breach of express or implied employment contract, wrongful
discharge, intentional infliction of emotional distress, and defamation or
injuries incurred on the job or incurred as a result of loss of employment. The
release described in this Paragraph 1 shall not apply to any claim for benefits
which may be due the Releasor under any "employee benefit plan" (as defined in
Section 3(3) of ERISA) of Kmart in which she was a participant. The Releasor
represents that she has not filed against the Company Releasees any complaints,
charges, or lawsuits arising out of her employment, or any other matter arising
on or prior to the date of this Release. The Releasor covenants and agrees that
she will not seek recovery against the Company Releasees arising out of any of
the matters released in this Paragraph 1.

         2.    The Releasor acknowledges that she has no seniority, recall,
reinstatement, or rehire rights with Kmart in any capacity.

         3.    The Releasor agrees that she will comply in all respects with the
terms of the Agreement and, except as provided in the Agreement, with the terms
of the 2001 Agreement (as defined in the Agreement).

         4.    If any provision or paragraph of this Release is ever determined
not enforceable, the remaining provisions and paragraphs shall remain in full
force and effect.

         5.    The Releasor acknowledges that she has been given 21 days,
commencing as of January 17, 2003, within which to consider this Release and
that she has 7 days following her execution to revoke her signature. The
Releasor further acknowledges and agrees that

<PAGE>

Kmart's final offer concerning the Agreement was made as of January 17, 2003,
and that any changes which may have been made to that offer, whether material or
immaterial, shall not restart the running of this 21-day period. If the Releasor
revokes her consent hereto prior to the expiration of such 7-day period, this
Release shall not be effective, and the Releasor shall receive no payments or
benefits pursuant to Section 5 of the Agreement.

         6.    This Release will be governed by and construed and enforced in
accordance with the internal laws of the State of Michigan.

         7.    Nothing in this Release shall impair any indemnification rights
the Releasor may have, including any rights under directors and officers
insurance policies.

         8.    THE RELEASOR ACKNOWLEDGES THAT SHE HAS READ THIS RELEASE, THAT
SHE HAS BEEN PROVIDED 21 DAYS, COMMENCING AS OF JANUARY 17, 2003, TO CONSIDER
THIS RELEASE, THAT SHE HAS BEEN ADVISED THAT SHE HAS 7 DAYS TO REVOKE HER
SIGNATURE, THAT SHE HAS BEEN ADVISED THAT SHE SHOULD CONSULT WITH AN ATTORNEY
BEFORE SHE EXECUTES THIS RELEASE, AND THAT SHE UNDERSTANDS ALL OF ITS TERMS AND
EXECUTES IT VOLUNTARILY AND WITH FULL KNOWLEDGE OF ITS SIGNIFICANCE AND THE
CONSEQUENCES THEREOF.

                                             RELEASOR

                                             _____________________
                                             Janet G. Kelley

Date: _____________

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00048-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00048-of-00352.parquet"}]]