Document:

Amended Umbrella Incentive Program

 EXHIBIT 10.5 
 SEARS HOLDINGS CORPORATION 
 UMBRELLA INCENTIVE PROGRAM (UIP) 
 SECTION 1 
 GENERAL

 1.1. Purpose. The Sears Holdings Corporation Umbrella Incentive Program (the “UIP”) is a
performance-based program. The UIP is designed to motivate the salaried employees of Sears Holdings Corporation (the “Company”), Sears Holdings Management Corporation, Sears, Roebuck and Co., Kmart Holding Corporation, and their
Subsidiaries, to achieve significant, lasting change that successfully positions the Company for future growth. Performance goals under the UIP align Participants’ financial incentives with the financial goals of the Company. Awards under the
UIP are designed to vary commensurately with achieved performance. Both Awards structured to satisfy the requirements for “performance-based compensation” outlined in regulations issued under Section 162(m) of the Internal Revenue
Code (“Code Section 162(m)”) and Awards not so structured may be issued hereunder. 
 The Committee may make an Award to an
Eligible Employee under the UIP, or from time to time may establish under the UIP annual and long term incentive plans for specific performance periods for specified groups of Eligible Employees, and make Awards under such plans, consistent with the
terms of the UIP. References throughout this document to Awards under the UIP shall also refer to Awards under any annual or long-term incentive plan established pursuant to the UIP. All Awards hereunder, including awards under any annual or
long-term incentive plan established pursuant hereto, that are intended to constitute “performance-based compensation” within the meaning of Code Section 162(m) and the regulations thereunder are contingent on shareholder approval of
the UIP, as provided in subsection 3.1. The Company previously established the Sears Holdings Corporation 2005 Senior Executive Long-Term Incentive Program, the Sears Holdings Corporation 2005 Vice President Long-Term Incentive Program, the Sears
Holdings Corporation 2005 Senior Executive Annual Incentive Plan, the Sears Holdings Corporation 2005 Salaried Employee Annual Incentive Plan, the Sears Holdings Corporation 2006 Long-Term Incentive Program and the Sears Holdings Corporation 2006
Annual Incentive Plan, each of which shall be treated as established under the UIP and shall be a part thereof. 
 1.2. Operation, Administration, and Definitions. The operation and administration of the UIP, including the Awards made under the UIP, shall be subject to the provisions of Section 6 (relating to
operation and administration). Capitalized terms in the UIP shall be defined as set forth in the UIP (including the definitional provisions of Section 9). 
 SECTION 2 
 PARTICIPATION 
 2.1. Eligible Employee. The term “Eligible Employee” means those salaried employees of the Company or a
Subsidiary who are designated as Eligible Employees by the “Committee” (as such term is defined in subsection 6.2 and further described in Section 7). Subject to the terms and conditions of the UIP, the Committee shall determine and
designate, from time to time, from among the Eligible Employees, those persons who shall be granted one or more Awards under the UIP, and thereby become “Participants” in the UIP. 
 2.2. New Hires. The Committee may designate as Participants those salaried employees whom the Committee determines have
been newly hired or promoted into the group of Eligible Employees, provided that the terms and conditions of Awards to such individuals shall be subject to such adjustments as the Committee deems necessary or desirable to qualify such Awards as
performance-based compensation for purposes of Code Section 162(m), if such Awards are intended to meet the requirements of Code Section 162(m). 
 SECTION 3 
 CASH INCENTIVE AWARDS/STOCK AWARDS 
 3.1 A “Cash Incentive Award” is the grant of a right to receive a payment of cash (or in the discretion of the Committee, Stock having
Fair Market Value, as of the date of payment, equivalent to the cash otherwise payable) that is contingent on the achievement of performance goals for the applicable performance period, as established by the Committee. The grant of Cash Incentive
Awards may also be subject to such other conditions, restrictions and contingencies as determined by the Committee. Except as otherwise 

  

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provided in this Section 3, Cash Incentive Awards are intended to be “performance-based compensation” as that term is used in regulations
issued under Code Section 162(m), and shall comply with the requirements of this Section 3 to the extent such compliance is determined by the Committee to be required for the Cash Incentive Awards to be treated as performance-based
compensation. With respect to Cash Incentive Awards that are intended to constitute “performance-based compensation” within the meaning of Code Section 162(m) and the regulations thereunder, any such Award shall be contingent on
shareholder approval of the UIP in accordance with Code Section 162(m) and the regulations promulgated thereunder, and no amount shall be paid under any such Award, unless and until shareholder approval of the UIP has been obtained in
accordance with Code Section 162(m) and the regulations thereunder. 
 3.2 Maximum Award. For Cash
Incentive Awards that are intended to be performance-based compensation under Code Section 162(m) and the regulations issued thereunder, no more than $5,000,000 may be paid to any one individual pursuant to such Awards granted for any
performance period of one year (provided that if a performance period is less than one year, the limit shall be subject to a corresponding pro rata reduction), and no more than $15,000,000 may be paid to any one individual pursuant to such Awards
granted for any performance period of three years (provided that if a performance period is less than three years, the limit shall be subject to a corresponding pro rata reduction). Cash Incentive Awards that are not intended to be performance-based
compensation under Code Section 162(m) and the regulations thereunder are not subject to the foregoing limits. The Committee may establish overlapping performance periods; provided that, to the extent that the performance periods applicable to
any individual overlap, the limit (and the pro rata reduction required under the preceding sentence) with respect to the second performance period shall be based on the portion of the period that does not overlap with the prior period. 

3.3 Performance Goals. The performance goals established for the performance period established by the Committee with
respect to Awards intended to constitute performance-based compensation under Code Section 162(m) and the regulations thereunder shall be objective (as that term is described in regulations under Code Section 162(m)), and shall be
established in writing by the Committee not later than 90 days after the beginning of the performance period (but in no event after 25% of the performance period has elapsed), and while the outcome as to the performance goals is substantially
uncertain. The performance goals established by the Committee may be with respect to corporate performance, operating group or sub-group performance, individual company performance, other group or individual performance, or division performance, and
shall be based on one or more of the Performance Measures described in subsection 3.6, below. 
 3.4 Attainment of
Performance Goals. A Participant otherwise entitled to receive a Cash Incentive Award intended to meet the requirements of performance-based compensation under Code Section 162(m) and the regulations thereunder for any performance
period shall not receive a settlement of the Award until the Committee has determined that the applicable performance goal(s) have been attained. To the extent that the Committee exercises discretion in making the determination required by this
subsection, such exercise of discretion may not result in an increase in the amount of the payment. 
 3.5 Partial
Achievement. The terms of an Award may provide that partial achievement of the performance goals may result in a payment or vesting based upon the degree of achievement. 
 3.6 Performance Measures.
 (a) Generally. Performance measures may be based on any one or more of the following: share price, market share, cash flow, revenue, revenue growth, earnings per share, operating earnings per share,
operating earnings, earnings before interest, taxes, depreciation and amortization, return on equity, return on assets, return on investment, net income, net income per share, economic value added, market value added, store sales growth, customer
satisfaction performance goals measured by independent customer satisfaction surveys and employee opinion survey results measured by an independent firm, and strategic business objectives, consisting of one or more objectives based on meeting
specific cost or profit targets or margins, business expansion goals and goals relating to acquisitions or divestitures. Each goal may be expressed on an absolute and/or relative basis, may be based on the Company as a whole or of any one or more
business units of the Company, or its Subsidiaries, and may be based on or otherwise employ comparisons based on internal targets, the past performance of the Company or of any one or more business units of the Company or its Subsidiaries, and/or
the past or current performance of other companies, or an index. 
  

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 (b) Extraordinary Items. In establishing any performance goals, the
Committee may, no later than the date such performance goals are established in accordance with subsection 3.3, provide for the exclusion of the effects of the following items, to the extent identified in the audited financial statements of the
Company, including footnotes, or in the Management Discussion and Analysis of Financial Condition and Results of Operations accompanying such financial statements: (i) asset write-downs; (ii) litigation or claim judgments or settlements;
(iii) extraordinary, unusual, and/or nonrecurring items of gain or loss; (iv) gains or losses on acquisitions or divestitures or store closings; (v) noncapital, purchase accounting items; (vi) changes in tax or accounting
principles, regulations or laws; (vii) mergers or acquisitions; (viii) integration costs disclosed as merger related; (ix) accruals for reorganization or restructuring programs; (x) bankruptcy-related matters of the predecessor
company, and (xi) foreign exchange gains and losses. To the extent the exclusion of any item affects Awards intended to constitute performance-based compensation under Code Section 162(m), such exclusion shall be specified in a manner that
satisfies the requirements of Code Section 162(m), including without limitation the requirement that performance goals be objectively determinable. 
 3.7 Non-Performance-Based Compensation. Nothing in this Section 3 shall preclude the Committee, the Company, or any Subsidiary from granting Cash Incentive Awards that are not
intended to be performance-based compensation under Code Section 162(m); provided, however, that, at the time of grant of Cash Incentive Awards by the Committee, the Committee shall designate whether such amounts are intended to constitute
performance-based compensation within the meaning of Code Section 162(m) and the regulations thereunder. To the extent that the provisions of this Section 3 reflect the requirements applicable to performance-based compensation under Code
Section 162(m) and the regulations thereunder, such provisions shall not apply to any Award which is not intended to satisfy such performance-based compensation requirements. 
 SECTION 4 
 DISTRIBUTION 
 4.1. General. Subject to Sections 5 and 6, the shares of Stock or the cash that result from an Award shall be distributed,
in a single lump sum, as soon as practicable after the first Committee meeting after the results for a performance period are available to the Committee (or in the case of Awards not intended to satisfy the requirements of Code Section 162(m)
such time as specified by the Committee in the Award). Notwithstanding anything herein to the contrary, as to Awards intended to meet the requirements of performance-based compensation under Code Section 162(m) and the regulations thereunder,
no distribution shall be made hereunder until after the Committee has certified the attainment of the performance goals and the amount to be paid to each Participant. The date as of which payment is made in accordance with this subsection 4.1 is
referred to herein as the “payment date.” 
 4.2. Termination and Other Provisions. All
distributions are subject to the provisions of Sections 5 and 6, below. 
 SECTION 5 
 TERMINATION 
 5.1. The
effect of death, disability, or termination of employment on a Participant’s right to receive a Cash Incentive Award (whether payable in cash or Stock) shall be determined by the Committee under the terms of the Award (or the terms of the
annual or long term incentive plan under which the Award is granted) and may depend both on the reason for the termination, if applicable, and the point in the performance period at which the event occurs, subject to the requirements of Code
Section 162(m) and the regulations thereunder in the case of Awards intended to constitute performance-based compensation under that Code Section. 
 SECTION 6 
 OPERATION AND ADMINISTRATION 
 6.1. Source of Awards. In the case of Awards under the UIP that are settled in shares of Stock, such shares shall be
distributed under a stock plan adopted by the Company and approved by the shareholders thereof that provides for the issuance of Stock in satisfaction of Awards hereunder (which in no event shall be an employee stock purchase plan). In the event of
any conflict between this document and such stock plan, the provisions of the stock plan shall govern. 
  

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 6.2. Committee. The UIP is administered by the Compensation Committee of
the Board (the “Committee”), as further described at Section 7. Any determinations by the Committee regarding the UIP are binding on all Participants. The Committee may make changes that it deems appropriate for the effective
administration of the UIP. Subject to subsection 6.3, these changes may not increase the benefits to which Participants may become entitled under an Award, nor change the pre-established measures in goals that have been approved with respect to any
Award that is intended to constitute performance-based compensation under Code Section 162(m). 
 6.3. Negative
Discretion. Notwithstanding anything in the UIP to the contrary, prior to the settlement of any Cash Incentive Award, the Committee may reduce the amount of such Award, or the number of shares of Stock or amount of cash to be delivered
in connection with such Award. 
 6.4. General Restrictions. Notwithstanding any other provision of the UIP,
the Company shall have no obligation to deliver any shares of Stock or make any other distribution of benefits under the UIP unless such delivery or distribution complies with all applicable laws (including, without limitation, the requirements of
the Securities Act of 1933, as amended), and the applicable requirements of any securities exchange or similar entity. 
 6.5. Tax Withholding. All distributions under an Award are subject to withholding of all applicable taxes, and the Committee may condition the delivery of any shares or other benefits under an Award on
satisfaction of the applicable withholding obligations. To the extent permitted by the Committee, such withholding obligations may be satisfied (i) through cash payment by the Participant, (ii) through the surrender of shares of Stock
which the Participant already owns (provided, however, that to the extent shares described in this clause (ii) are used to satisfy more than the minimum statutory withholding obligation, as described below, then, except as otherwise provided by
the Committee, payments made with shares of Stock in accordance with this clause (ii) shall be limited to shares held by the Participant for not less than six months prior to the payment date (or such other period of time as the Company’s
accountants may require), or (iii) through the surrender of shares of Stock to which the Participant is otherwise entitled under the UIP; provided, however, that such shares under this clause (iii) may be used to satisfy not more than the
Company’s minimum statutory withholding obligation (based on minimum statutory withholding rates for Federal and state tax purposes, including payroll taxes, that are applicable to such supplemental taxable income). 
 6.6. Settlement of Awards. The obligation to make payments and distributions with respect to Awards may be satisfied
through cash payments, the delivery of shares of Stock, or a combination thereof, subject, in the case of settlement in shares, to the terms of the stock plan under which the Stock is issued. Satisfaction of any such obligations under an Award,
which is sometimes referred to as the “settlement” of the Award, may be subject to such conditions, restrictions and contingencies as the Committee shall determine. Each Subsidiary shall be liable for payment of cash due under the UIP with
respect to any Participant to the extent that such benefits are attributable to the services rendered for that Subsidiary by the Participant. Any disputes relating to liability of a Subsidiary for cash payments shall be resolved by the Committee.

 6.7. Transferability. Except as otherwise provided by the Committee, Awards under the UIP are not
transferable except as designated by the Participant by will or by the laws of descent and distribution. 
 6.8. Form and
Time of Elections. Unless otherwise specified herein, each election required or permitted to be made by any Participant or other person entitled to benefits under an Award, and any permitted modification, or revocation thereof, shall be
in writing filed with the Committee at such times, in such form, and subject to such restrictions and limitations, not inconsistent with the terms of the UIP, as the Committee shall require. 
 6.9. Agreement With Company. Any Award under the UIP shall be subject to such terms and conditions, not inconsistent with
the UIP, as the Committee shall, in its sole discretion, prescribe. The terms and conditions of any Award to any Participant shall be reflected in such form of written (including electronic) document as is determined by the Committee. A copy of such
document shall be provided to the Participant, and the Committee may, but need not, require that the Participant sign a copy of such document. Such document is referred to as an “Award Agreement” regardless of whether any Participant
signature is required. 
 6.10. Action by Company or Subsidiary. Any action required or permitted to be taken
under the UIP by the Company, Sears Holdings Management Corporation, Sears, Roebuck and Co., Kmart Holding Corporation or any Subsidiary shall be by resolution of its board of directors, or by action of one or more members of the board of directors
of such company (including a committee of the board) who are duly authorized to act for such board with respect to the applicable action, or (except to the extent prohibited by applicable law or applicable rules of any securities exchange or similar
entity) by a duly authorized officer of such company. 
  

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 6.11. Gender and Number. Where the context admits, words in any gender
shall include any other gender, words in the singular shall include the plural and the plural shall include the singular. 
 6.12. Limitation of Implied Rights.
 (a) Neither a Participant nor any other person
shall, by reason of participation in the UIP, acquire any right in or title to any assets, funds or property of the Company or any Subsidiary whatsoever, including, without limitation, any specific funds, assets, or other property which the Company
or any Subsidiary, in its sole discretion, may set aside in anticipation of a liability under the UIP. A Participant shall have only a contractual right to the cash or Stock, if any, payable under the UIP, unsecured by any assets of the Company or
any Subsidiary, and nothing contained in the UIP shall constitute a guarantee that the assets of the Company or any Subsidiary shall be sufficient to pay any benefits to any person. 
 (b) The UIP does not constitute a contract of employment, and selection as a Participant shall not give any participating employee
the right to be retained in the employ of the Company or any Subsidiary, nor any right or claim to any benefit under the UIP, unless such right or claim has specifically accrued under the terms of the UIP. Except as otherwise provided in the UIP, no
Award under the UIP shall confer upon the holder thereof any rights as a shareholder of the Company prior to the date on which the individual fulfills all conditions for receipt of such rights. 
 6.13. Evidence. Evidence required of anyone under the UIP may be by certificate, affidavit, document or other information,
which the person charged with acting on such evidence considers pertinent and reliable, and which has been signed, made or presented by the proper party or parties. 
 6.14. Corporate Transaction. In the event of a corporate transaction involving the Company (including without limitation, any Stock dividend, Stock split, extraordinary cash dividend,
recapitalization, reorganization, merger, consolidation, split-up, spin-off, sale of assets or subsidiaries, combination or exchange of shares), the Committee may adjust Awards to preserve but in no event increase the benefits or potential benefits
of the Awards; provided, however, that no such adjustment may be made to the extent such adjustment would cause Awards that are intended to constitute performance-based compensation to cease to qualify as such under Code Section 162(m). Actions
permitted under the preceding sentence by the Committee may include any adjustments that the Committee determines to be equitable (which may include, without limitation, (a) replacement of Awards with other Awards which the Committee determines
have comparable value and which are based on stock of a company resulting from the transaction, and (b) cancellation of the Award in return for cash payment of the current value of the Award, determined as though the Award is fully vested at
the time of the payment. 
 SECTION 7 
 COMMITTEE 
 7.1. Administration. As provided in subsection 6.2,
the authority to control and manage the operation and administration of the UIP shall be vested in the Compensation Committee of the Board of Directors of the Company (the “Committee”). 
 7.2. Powers of Committee. The Committee’s administration of the UIP shall be subject to the following: 
 (a) As provided in subsection 2.1 above, the Committee shall have the authority and discretion to determine those salaried employees
who are Eligible Employees and to select from among the Eligible Employees those persons who shall receive Awards. 
 (b) Subject to the other provisions of the UIP, the Committee shall have the authority and discretion to determine the time or times of receipt and the types of Awards, to establish the terms, conditions, restrictions, and other
provisions of Awards, and (subject to the restrictions imposed by Section 8) to amend, cancel, or suspend Awards. However (and subject at all times to the requirements of Code Section 162(m) as to Awards that are intended to constitute
performance-based compensation under that Section), to the extent that the Committee determines that the restrictions imposed by the UIP preclude the achievement of the material purposes of the Awards in jurisdictions outside the United States, the
Committee shall have the authority and discretion to modify those restrictions as the Committee determines to be necessary or appropriate to conform to applicable requirements or practices of jurisdictions outside of the United States. 

 

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 (c) The Committee shall have the authority and discretion to interpret the UIP, to
establish, amend, and rescind any rules and regulations relating to the UIP, to determine the terms and provisions of any Award Agreement made pursuant to the UIP, and to make all other determinations that may be necessary or advisable for the
administration of the UIP. 
 (d) Any interpretation of the UIP by the Committee and any decision made by it under the
UIP are final and binding on all persons. 
 7.3. Delegation by Committee. Except to the extent prohibited by
applicable law or the applicable rules of a securities exchange or similar entity, or as would cause UIP Awards intended to constitute performance-based compensation under Code Section 162(m) to fail to so qualify, the Committee may allocate
all or any portion of its responsibilities and powers to any one or more of its members and may delegate all or any part of its responsibilities and powers to any person or persons selected by it. The Committee may revoke any such allocation or
delegation at any time. 
 7.4. Information to be Furnished to Committee. The Company, Sears Holdings
Management Corporation, Sears, Roebuck and Co., Kmart Holding Corporation, and their Subsidiaries, shall furnish the Committee with such data and information as it determines may be required for it to discharge its duties hereunder. The records of
the Company, Sears Holdings Management Corporation, Sears, Roebuck and Co., Kmart Holding Corporation and their Subsidiaries, as to an employee’s or Participant’s employment, termination of employment, leave of absence, reemployment, and
compensation shall be conclusive on all persons unless determined to be incorrect. Participants and other persons entitled to benefits under the UIP must furnish the Committee such evidence, data or information as the Committee considers desirable
to carry out the terms of the UIP, subject to any applicable privacy laws. 
 SECTION 8 
 AMENDMENT AND TERMINATION 
 The
Board or the Committee may, at any time, amend or terminate the UIP, and the Board or the Committee may amend any Award; provided, that no amendment or termination may, in the absence of written consent to the change by the affected Participant (or,
if the Participant is not then living, the affected beneficiary), adversely affect the rights of any Participant or beneficiary under any Award granted under the UIP prior to the date such amendment is adopted by the Board or the Committee, and no
amendment may be made, without consent of the shareholders of the Company, that would cause any Awards intended to meet the requirements of “performance-based compensation” under Code Section 162(m) and the regulations thereunder to
cease to be deductible under Code Section 162(m). Notwithstanding anything herein to the contrary, (i) no amendment shall be made that would cause the Plan not to comply with the requirements of Code Section 409A or any other
applicable law or rule of any applicable securities exchange or similar entity, and (ii) the UIP and any Award thereunder may be amended without Participant consent to the extent that the Committee determines such amendment necessary to cause
the UIP or Award to comply with the requirements of Code Section 409A or any other applicable law or rule of any applicable securities exchange or similar entity. 
 SECTION 9 
 DEFINED TERMS 
 In addition to the other definitions contained herein, the following definitions shall apply: 
 (a) Award. The term “Award” means any Cash Incentive Award, whether settled in cash or Stock.

 (b) Board. The term “Board” means the Board of Directors of the Company. 
 (c) Code. The term “Code” means the Internal Revenue Code of 1986, as amended. A reference to any
provision of the Code shall include reference to any successor provision of the Code. 
 (d) Fair Market
Value. The term “Fair Market Value” shall mean the reported closing price of a share of Stock on the principal securities exchange or market on which the Stock is then listed or admitted to trading. 
 (e) Stock. The term “Stock” means common shares of the Company. 
 (f) Subsidiary. The term “Subsidiary” means any company during any period in which it is a
“subsidiary corporation” (as that term is defined in Section 424(f) of the Code) with respect to the Company. 
  

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 FIRST AMENDMENT TO THE SEARS HOLDINGS CORPORATION 
 UMBRELLA INCENTIVE PROGRAM (UIP) 
 Pursuant to the authority reserved to the Board or the Committee under Section 8 of the Sears Holdings Corporation Umbrella Incentive Program (UIP), the UIP is hereby amended in the following respects, effective as of
February 23, 2007, contingent upon shareholder approval of this First Amendment to the UIP: 
 1. Section 3.1 of the UIP is
amended by deleting it in its entirety and inserting a new Section 3.1 in its place to read as follows: 
 “3.1 Awards. An Award may be granted under the UIP in the form of a “Cash Incentive Award’ or a “Stock Award”. 
  

	 	(a)	A Cash Incentive Award is a grant of a right to receive a payment of cash (or in the discretion of the Committee, shares of Stock having Fair Market Value, as of the date of
payment, equivalent to the cash otherwise payable) that is contingent upon achievement of performance goals for the applicable performance period, as established by the Committee. 

  

	 	(b)	A Stock Award is a grant of shares of Stock, which grant shall be subject to risk of forfeiture or other restrictions that will lapse upon the achievement of performance goals for
the applicable performance period, as established by the Committee. 

 The grant of an Award may also be subject to such other
conditions, restrictions and contingencies as determined by the Committee. Except as otherwise provided in this Section 3, Awards are intended to be “performance-based compensation” as that term is used in regulations issued under
Code Section 162(m), and shall comply with the requirements of this Section 3 to the extent such compliance is determined by the Committee to be required for the Awards to be treated as performance-based compensation. With respect to
Awards that are intended to constitute “performance-based compensation” within the meaning of Code Section 162(m) and the regulations issued thereunder, any such Award shall be contingent upon shareholder approval of the UIP or any
amendment to the UIP implicating Code Section 162(m) and the regulations issued thereunder, and no amount shall be paid under any such Award unless and until shareholder approval has been obtained in accordance with Code Section 162(m) and
the regulations issued thereunder.” 
 2. Section 3.2 of the UIP is amended by deleting it in its entirety and inserting a new
Section 3.2 in its place to read as follows: 
 “3.2 Maximum Amount. For Awards that are intended
to be performance-based compensation under Code Section 162(m) and the regulations issued thereunder: 
  

	 	(a)	No more than $5,000,000 may be paid to any one individual pursuant to such Awards granted for any performance period of one year (provided that if the performance period is less
than one year, the limit shall be subject to a corresponding pro rata reduction); 

  

	 	(b)	No more than $15,000,000 may be paid to any one individual pursuant to such Awards granted for any performance period of three years (provided that if the performance period is less
than three years, the limit shall be subject to a corresponding pro rata reduction); and 

  

	 	(c)	No more than $20,000,000 may be paid to any one individual pursuant to such Awards granted for any performance period of four or more years, which period shall be based on a fixed
number of years (provided that if the performance period is less than four years), the limit shall be subject to a corresponding pro rata reduction). 

 Awards that are not intended to constitute “performance-based compensation” under Code Section 162(m) and the regulations issued thereunder, are not subject to the foregoing limits. The Committee may
establish overlapping performance periods; provided that, to the extent that the performance periods applicable to any individual overlap, the limit (and any required pro rata reduction) with respect to a subsequent performance period shall be
reduced by the amount of the limit of a prior performance 

  

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period attributable to the overlapping portion of any such prior performance period. At the end of any performance period for which there is a subsequent
overlapping period, when the amount payable to an individual with respect to the former performance period is known, the Committee shall determine the amount attributable to each year within the performance period, by allocating the amount payable
over the performance period on a straight-line basis.” 
 3. Any reference to “Cash Incentive Award” following
Section 3.2 that, based on the amendments above, should be construed to refer to Cash Incentive Award or Stock Award (as added by new subsection 3.1(b) of the UIP), shall be construed by the Board and Committee to refer also to a Stock Award as
appropriate. 
 4. Except as amended herein, the UIP is hereby confirmed in all other respects. 
 SECOND AMENDMENT 
 TO THE

 SEARS HOLDINGS CORPORATION 
 UMBRELLA INCENTIVE PROGRAM (UIP) 
 Pursuant to the authority reserved to the Board or the
Committee under Section 8 of the Sears Holdings Corporation Umbrella Incentive Program (UIP), the UIP is hereby amended in the following respects, effective as of March 15, 2007: 
 1. Section 2.1 of the UIP is amended by adding a new sentence at the end thereof to read as follows: 
 “Notwithstanding the forgoing, with respect to any annual incentive plan established under the UIP, the term “Eligible Employee” shall mean
those salaried and hourly employees of the Company or a Subsidiary who are designated as Eligible Employees under the terms of the annual incentive plan and thereby become “Participants” under such annual incentive plan.” 

2. Section 2.2 of the UIP is amended by adding a new sentence at the end thereof to read as follows: 
 “Notwithstanding the forgoing, with respect to any annual incentive plan established under the UIP, the eligibility of newly hired employees shall be
determined in accordance with the terms of the applicable annual incentive plan.” 
 3. The first sentence of Section 3.6(b) of the
UIP is amended by: 
 (a) Inserting the following clause immediately after “(x) bankruptcy-related matters of the
predecessor company,”: 
 “(xi) investment income or loss, and”; and 
 (b) Relettering item (xi) as “(xii)”. 
 4. Except as amended herein, the UIP is hereby confirmed in all other respects. 
  

 8Letter to Corwin M. Yulinsky relating to employment

 EXHIBIT 10.14 
 [SEARS HOLDINGS LETTERHEAD] 
  

			
		 	ROBERT D. LUSE
	 	 	Senior Vice President,
		 	Human Resources

 October 2, 2005 
 Corwin M. Yulinsky 
 [Address Omitted] 
 Dear Corey:

 We are pleased to extend to you our offer to join Sears Holdings Corporation as EVP, Chief Strategist & Customer Officer, reporting to Edward
Lampert. This letter serves as a confirmation of our offer. Some key elements of the offer are as follows: 
  

	 	•	 	 Your start date will be October 31, 2005. 

  

	 	•	 	 Base salary at an annual rate of $600,000. 

  

	 	•	 	 You will be eligible for an annual target incentive opportunity of 75% of your base salary or $450,000. The actual amount of the incentive you earn may range from
0% to 150% depending on how well you and the company perform. 

  

	 	•	 	 Your 2005 annual incentive payment, payable in 2006, will be $375,000. 

  

	 	•	 	 You will be eligible for participation in the Sears Holdings Corporation 2005 Executive Long Term Incentive Plan (SHC LTIP). Your target award for the 2005 through
2007 plan cycle is $2,041,667, which is the pro rata portion of $2,625,000. This award is payable in April 2008; the actual amount of the award you receive will depend on Sears Holdings Corporation Earnings Before Interest, Taxes, Depreciation and
Amortization (EBITDA). 

  

	 	•	 	 You will receive, as of your date of hire, $500,000 of restricted stock that will vest in 1/3 increments on each of the first three anniversaries of your date of
hire, subject to shareholder approval. 

  

	 	•	 	 You will be asked to sign an Executive Severance / Non-Compete Agreement and an Executive Non-Disclosure and Non-Solicitation of Employees Agreement as a condition
of your employment. If you are involuntarily terminated from Sears for any reason other than cause, death, total and permanent disability, resignation, or retirement after age 65, you will receive one year of pay continuation, equal to your base
salary at the time of termination, subject to mitigation. In consideration for these severance terms, you agree not disclose confidential information and not to solicit employees. You would also agree not to aid, assist or render services for any
‘Competitor’ (as defined in the agreement) for one year following termination of employment. 

	 	•	 	 You are eligible to receive 3 weeks paid vacation, which will be pro-rated during your first year of service based on your start date. Added to this, you will
qualify for six paid National Holidays each year. Flexible Days will be granted after one year of service. 

  

	 	•	 	 You will participate in all retirement and welfare programs on a basis no less favorable than other executives at your level, in accordance with the applicable
terms of those programs. 

 This offer is contingent upon satisfactory completion of a background reference check, employment authorization
verification and pre-employment drug test. 
 Corey, we are looking forward to your joining us. We are excited about the important contributions you will
make at Sears Holdings. I look forward to your acceptance of our offer. If you need additional information or clarification, please call. 
 Sincerely,

  

	
	 /s/ Robert D. Luse

	Robert D. Luse
	SVP, Human Resources

 cc: Edward Lampert 
 Accepted /s/ Corwin M. Yulinsky Date: 10/2/05

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