Document:

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May 25, 2005

Lyle G. Heidemann
4009 Oak Ridge Road
Crystal Lake, IL 60012

Dear Lyle:

The True Value Company (the "Company") is pleased to offer you employment as the
President and Chief Executive Officer of the Company on the following terms and
conditions:

     1.   Effective Date. Contingent upon you passing the Company's customary
          pre-employment drug screen, your employment with the Company will
          commence on June 6, 2005 or such other date as shall be mutually
          agreed by you and the Company, but not later than June 15, 2005 (such
          commencement date the "Effective Date"). The terms of this letter
          agreement (the "Agreement") will be effective upon the Effective Date
          and are contingent upon you commencing the performance of services for
          the Company.

     2.   Representations. You represent that you are entering into this
          Agreement voluntarily and that your employment with the Company and
          your compliance with the terms and conditions of this Agreement will
          not conflict with or result in the breach of any agreement to which
          you are a party or by which you may be bound.

          You further represent that you have provided the Company with copies
          of any agreement between you and any third party in which you agreed:
          (a) to maintain the confidentiality of documents and/or information;
          (b) not to solicit any former customers and/or vendors; (c) not to
          work for any company that competes with a former employer; (d) not to
          solicit any current or former employees of a previous employer; or (e)
          to adhere to any other obligations to a former employer, as well as
          any other agreements currently in effect with your former employer.

     3.   At-Will Employment. Notwithstanding any other term or condition of
          this Agreement, you understand and agree that the relationship between
          you and the Company is one of at-will employment. Neither this
          Agreement nor any other communication from the Company should be
          construed as a contract of employment for a particular period of time.

     4.   Position, Responsibilities and Reporting Relationship. You will be
          employed as the President and Chief Executive Officer of the Company
          with such duties and responsibilities as are customarily assigned to
          such position and such other duties and responsibilities not
          inconsistent therewith as may from time to time be assigned to you by
          the Board of Directors of the Company (the "Board"). You will report
          solely to the Board. You agree that a change in your title from
          "President and Chief Executive Officer" to simply "Chief Executive
          Officer" and

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Lyle G. Heideman
May 25, 2005
Page 2

          a corresponding change in duties and responsibilities will not be a
          breach of this Agreement so long as you concur with the change.

     5.   Board Membership. The Company will cause you to be appointed to the
          Board as of the Effective Date. Thereafter, while you are employed
          pursuant to this Agreement, the Company will cause you to be included
          in the slate of persons nominated to serve as directors on the Board.
          You will not be entitled to any additional compensation due to your
          service as a Board member. Upon any termination of your employment
          with the Company, you will promptly resign from the Board, and from
          any other positions you may hold with the Company, its affiliates and
          subsidiaries.

     6.   Scope; Outside Activities. You will devote all of your skill,
          knowledge, attention and time during normal business hours to the
          business and affairs of the Company and to the conscientious
          performance of your duties. It will not be a violation of the
          foregoing for you to manage your personal investments or to serve on
          corporate, industry, civic or charitable boards or committees other
          than the Board ("Outside Boards"), so long as such activities do not
          interfere with the performance of your responsibilities as an
          executive officer of the Company in accordance with this Agreement and
          do not create a conflict of interest with your duties and
          responsibilities hereunder. You represent that as of the Effective
          Date, you have no Outside Board positions. You shall secure the
          consent of the Board prior to accepting any Outside Board positions.

     7.   Work Location. You will be based at the Company's principal
          headquarters except for travel required for the performance of your
          duties hereunder.

     8.   Salary. You will receive an annualized base salary of Seven Hundred
          and Twenty Five Thousand Dollars ($725,000) (the "Base Salary"), which
          will be paid in accordance with the Company's executive payroll
          policy. The Base Salary shall be reviewed from time to time by the
          Board or the Compensation Committee thereof. Based upon such reviews,
          your Base Salary may be increased, but shall not be decreased, unless
          pursuant to a decrease for executives of the Company generally. The
          term "Base Salary" will refer to the Base Salary as so increased or
          decreased from time to time.

     9.   Signing Bonus. No later than fifteen (15) days after the Effective
          Date, Company shall pay you a signing bonus of Two Hundred Fifty
          Thousand Dollars ($250,000.00). If your employment with the Company is
          terminated at any time prior to the one year anniversary of the
          Effective Date for any reason other than due to your death or
          Disability (as such terms are defined below), you shall repay the
          Company Two Hundred Fifty Thousand Dollars ($250,000.00) within 15
          days of the termination date of your employment; provided, however, if
          your

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Lyle G. Heideman
May 25, 2005
Page 3

          employment is terminated by the Company without Cause, as hereinafter
          defined, prior to the one year anniversary of the Effective Date, you
          shall only repay a fraction of the signing bonus, determined by
          multiplying $250,000 times the fraction with a numerator equal to the
          number of days from the date of termination through the one year
          anniversary of the Effective Date and the denominator of 365.

     10.  Additional Payments.

          (a)  First Retention Bonus. On the one (1) year anniversary (the
               "First Anniversary") of the Effective Date, Company shall pay you
               a retention bonus of Two Hundred Fifty Thousand Dollars
               ($250,000.00) unless your employment with the Company has been
               terminated or you have received notice of termination or provided
               notice of resignation by the First Anniversary date.

          (b)  Second Retention Bonus. On the two (2) year anniversary (the
               "Second Anniversary") of the Effective Date, Company shall pay
               you a retention bonus of Two Hundred Thousand Dollars
               ($200,000.00) unless your employment with the Company has been
               terminated or you have received notice of termination or provided
               notice of resignation by the Second Anniversary date.

          (c)  Special Payment. Company shall pay you a one-time payment equal
               to the fair market value of One Thousand Six Hundred and Thirty
               (1,630) shares of Sears Holdings Corp. ("SHLD"). For this purpose
               fair market value will be the volume weighted average price for
               the 5 trading days preceding and the 5 trading days on and
               following the public release of SHLD's earnings for the second
               quarter of 2005. The payment will be made 15 days after the
               conclusion of the valuation period.

     11.  Annual Incentive Plan. You will be eligible to participate in the
          Company's annual incentive compensation programs for its executive
          officers as exist from time to time, subject to achievement of
          specific goals and objectives established by the Board and subject to
          such other terms and conditions as may be determined by the Company.
          For fiscal year 2005, payment of your target annual incentive award
          which is equal to seventy percent (70%) of your Base Salary, prorated
          from the first day of the month following the Effective Date, shall be
          guaranteed and shall be paid to you contemporaneously with the
          Company's regular payment of other executive bonuses. Other than for
          the 2005 annual Executive Incentive Plan year, payment under the
          Company's Executive Incentive Plan is not guaranteed and is subject to
          the approval of the Board.

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Lyle G. Heideman
May 25, 2005
Page 4

     12.  Long-Term Incentive Plan. You will be eligible to participate in the
          Company's long-term incentive plans for its executive officers as
          exist from time to time, subject to achievement of specific goals and
          objectives established by the Board and subject to such other terms
          and conditions as may be determined by the Company. Your threshold
          payment under the long-term incentive plan will equal fifty percent
          (50%) of your Base Salary. Your target payment under the long-term
          incentive plan will equal one hundred percent (100%) of your Base
          Salary. Payment of the 2005 portion of the long-term incentive plan
          for Performance Period Three (2003/2004/2005), prorated from the first
          day of the month following the Effective Date, shall be guaranteed and
          shall be paid to you contemporaneously with the Company's regular
          payment of other executive bonuses. Other than the 2005 payment,
          payment under the Company's long term incentive plan is not guaranteed
          and is subject to the approval of the Board. You understand that the
          terms, conditions, goals and payments under the long term incentive
          plan are currently under review and will likely be modified.

     13.  Vacation. You will be entitled to four (4) weeks paid vacation per
          calendar year, prorated for 2005 based on the Effective Date. Per the
          Company's policy, no vacation may be carried over into a subsequent
          calendar year.

     14.  Retirement Benefits. You will be entitled to participate in all
          tax-qualified and nonqualified savings, retirement and deferred
          compensation plans of the Company, in each case as such plans exist
          from time to time and to the same extent, and subject to the same
          terms and conditions, as applicable to senior executives of the
          Company who commence employment with the Company on and after April 1,
          2005. Nothing in this Agreement precludes the Company from amending or
          terminating any savings, retirement or deferred compensation plan.

     15.  Welfare Benefits. You and/or your eligible dependents, as the case may
          be, shall be eligible to participate in all welfare benefit plans,
          practices, policies and programs provided by the Company, including
          any medical, prescription, dental, disability, life insurance,
          accidental death and travel accident insurance plans and programs, as
          exist from time to time and to the same extent, and subject to the
          same terms and conditions, as applicable to senior executives of the
          Company who commence employment with the Company on and after April 1,
          2005. Nothing in this Agreement precludes the Company from amending or
          terminating any welfare benefit plan.

     16.  Fringe Benefits. You will be entitled to participate in all fringe
          benefit practices, policies and programs of the Company as exist from
          time to time and to the same extent, and subject to the same terms and
          conditions, as applicable to senior executives of the Company who
          commence employment with the Company on and after April 1, 2005. As of
          the date first written above, the fringe benefits to

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Lyle G. Heideman
May 25, 2005
Page 5

          be provided to you include (a) a car allowance in the annualized
          amount of ten thousand five hundred dollars ($10,500), (b)
          reimbursement for personal financial services in the annualized amount
          of two thousand five hundred dollars ($2,500), and (c) an annual
          executive physical through the executive physical program of the
          Company. Nothing in this Agreement precludes the Company from amending
          or terminating any fringe benefit plan.

     17.  Termination of Employment.

          (a)  Death. Your employment will terminate automatically upon your
               death.

          (b)  Disability. The Company will be entitled to terminate your
               employment because of your Disability. "Disability" will be
               deemed the reason for termination of your employment, if, due to
               physical or mental illness, you are prevented from the full-time
               performance of your duties hereunder for a period of three (3)
               consecutive months or for one hundred twenty (120) days out of a
               one hundred eighty (180) day period, or, in the opinion of a
               physician selected by the Company to whom you or your legal
               representative reasonably agree, you are likely to be prevented
               from performing your duties hereunder for three (3) consecutive
               months or for one hundred twenty (120) days out of a one hundred
               eighty (180) day period.

          (c)  Your Resignation. You may resign your employment with or without
               Good Reason (as defined below).

               (i)    You may resign for Good Reason by giving the Company
                      written notice within thirty (30) days of your becoming
                      aware of such act or omission that constitutes Good Reason
                      that sets forth in reasonable detail the specific acts or
                      omissions of the Company that constitute Good Reason. Your
                      resignation for Good Reason will be effective thirty (30)
                      days following the date such written notice is received by
                      the Company (unless the Company cures such act or omission
                      before the expiration of such thirty (30) day period) or
                      such earlier date as selected by the Company.

               (ii)   You may resign without Good Reason by giving the Company
                      written notice. Your resignation without Good Reason will
                      be effective thirty (30) days following the date such
                      written notice is received by the Company or such earlier
                      date as chosen by the Company.

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Lyle G. Heideman
May 25, 2005
Page 6

               (iii)  "Good Reason" means the occurrence (without your consent)
                      of any one of the following acts by the Company or
                      failures by the Company to act:

                      (1)  the assignment to you of duties inconsistent with
                           your status as the Chief Executive Officer of the
                           Company (including by reason of the Company becoming
                           a subsidiary of another company) or a substantial
                           adverse alteration in the nature or status of your
                           title (You acknowledge, however, that a change in
                           your title from "President and Chief Executive
                           Officer" to simply "Chief Executive Officer" and any
                           corresponding alteration in duties due to the
                           "President" title being associated with another
                           executive officer of the Company will not constitute
                           Good Reason.);

                      (2)  a reduction by the Company in your Base Salary (other
                           than a reduction pursuant to a reduction in the base
                           salaries of executive officers generally); or

                      (3)  the relocation of your principal place of employment
                           to a location more than fifty (50) miles from your
                           principal place of employment as of the Effective
                           Date, except for required travel on the Company's
                           business and unless the distance from your new
                           principal place of employment to your then-current
                           primary residence is less than the distance from your
                           principal place of employment to your primary
                           residence as of the Effective Date.

          (d)  Termination by the Company. The Company may terminate your
               employment either with Cause (as defined below) or without Cause,
               effective as of the date such written notice is received by you
               or such other date as specified in the written notice, which will
               be no later than thirty (30) days following the date you receive
               the written notice. "Cause" for termination by the Company of
               your employment means:

               (i)    the willful failure by you to substantially perform your
                      duties with the Company (other than such failure resulting
                      from your incapacity due to physical or mental illness)
                      provided that prior to terminating your employment for
                      Cause under this clause (i) the Board of Directors must
                      have delivered to you a written notice generally
                      describing its intention to terminate you pursuant to this
                      clause and have provided you with an opportunity to appear
                      before

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Lyle G. Heideman
May 25, 2005
Page 7

                      the Board to present your position relative to the issues
                      identified by the Board of Directors;

               (ii)   the willful engaging by you in conduct which has caused or
                      may reasonably be expected to cause material injury to the
                      Company or any of its affiliates, monetarily or otherwise;

               (iii)  your conviction of or plea of guilty or nolo contendre to
                      any felony or to a misdemeanor involving theft or moral
                      turpitude; or

               (iv)   your willful and material breach of any obligation
                      hereunder or any obligation pursuant to any written
                      covenant or agreement with the Company including, but not
                      limited to, the Company's Code of Conduct and Business
                      Ethics and other applicable policies of the Company.

     18.  Date of Termination. "Date of Termination" means:

          (a)  If the termination is due to death, the date of death;

          (b)  If the termination is due to Disability, thirty (30) days
               following the date you receive written notice of the termination;

          (c)  If the termination is due to your resignation with Good Reason,
               thirty (30) days following the date the Company receives written
               notice of your resignation (unless the Company cures such act or
               omission before the expiration of such thirty (30) day period) or
               such earlier date as selected by the Company, per Paragraph
               17(c)(i) above;

          (d)  If the termination is due to your resignation without Good
               Reason, thirty (30) days following the date the Company receives
               written notice of your resignation or such earlier date as
               selected by the Company, per Paragraph 17(c)(ii) above;

          (e)  If the termination is by the Company with Cause, the date you
               receive written notice of the termination or such other date as
               specified in the written notice; or

          (f)  If the termination is by the Company without Cause, the date you
               receive written notice of the termination or such other date as
               specified in the written notice.

     19.  Obligations of the Company upon Your Resignation for Good Reason or
          upon Termination other than for Cause, Death, Disability. If the
          Company terminates

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Lyle G. Heideman
May 25, 2005
Page 8

          your employment for any reason other than Cause or Disability, or if
          your resign for Good Reason, then:

          (a)  the Company will pay you, not later than thirty (30) days
               following the Date of Termination any unpaid amounts of your Base
               Salary accrued through your Date of Termination (the "Accrued
               Amounts");

          (b)  during the twelve (12) months immediately following your Date of
               Termination, the Company will pay you your Base Salary in
               accordance with the Company's executive payroll policy in place
               at such time; provided, however, that such payments will be
               offset dollar for dollar for any compensation in whatsoever form
               you receive from a subsequent employer or from self-employment
               (you have the obligation to promptly notify the Company of such
               compensation);

          (c)  if the date of termination occurs within the one year period
               immediately following a Change in Control (as defined below) of
               the Company, the Company will pay to you during the twelve (12)
               months immediately following your Date of Termination, in
               substantially equal installments in accordance with the Company's
               executive payroll policy in place at such time, an amount equal
               to your most recent payment pursuant to the Company's annual
               Executive Incentive Plan, subject to the same offset provisions
               as described at subparagraph (b) immediately above; and

          (d)  the Company will provide to you (and/or your eligible dependents,
               as the case may be), for a period of twelve (12) months following
               your date of termination, medical benefits to which you (and/or
               your eligible dependents, as the case may be) were entitled
               immediately before your date of termination, with such benefit
               continuation running concurrent with any COBRA continuation
               rights you may have; provided, however, that:

               (i)    you pay for any employee paid portion of such benefits;
                      and

               (ii)   such benefits shall cease upon your eligibility for
                      comparable benefit from a subsequent employer (you have
                      the obligation to promptly notify the Company of such
                      eligibility).

     20.  Definition of Change in Control. A "Change in Control" of the Company
          will be deemed to have occurred upon the occurrence of:

          (a)  a merger, consolidation, reorganization, or change in control of
               the Company with or involving any other corporation or entity, as
               a result of which persons who were stockholders of the Company
               immediately prior

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Lyle G. Heideman
May 25, 2005
Page 9

               to such merger or consolidation, do not, immediately thereafter,
               own, directly or indirectly, more than 50% of the combined voting
               power entitled to vote generally in the election of directors of
               the merged or consolidated company; or

          (b)  the sale or disposition of all or substantially all of the
               Company's assets to one or more entities that are not,
               immediately prior to such sale, transfer or other disposition,
               affiliates.

     21.  Death or Disability. If the Company terminates your employment due to
          Disability or your employment terminates due to your death, you or
          your properly named beneficiaries or, if none, your estate or legal
          representative, will receive:

          (a)  the Accrued Amounts; and

          (b)  contemporaneous with the Company's regular payment of other
               executive bonuses under the annual Executive Incentive Plan in
               place on the Date of Termination, a pro rata payment under such
               plan based on the number of days you worked during the
               performance period and the payment you would have received
               (which, if the performance goals are not met, may be zero) had
               you been employed for the entire performance period.

     22.  Release. In connection with any termination of your employment under
          which payment or benefits are provided you agree to execute the
          Company's customary general release of claims which will waive any
          rights you may otherwise have against the Company, its affiliates,
          officers and directors. No payments or benefits will be made pursuant
          to Paragraphs 19(b)-(d) or 21(b) prior to the expiration of the
          required revocation period with respect to such release.

     23.  Obligations of the Company upon your Resignation without Good Reason
          or upon Termination with Cause. If your employment is terminated by
          reason of your resignation without Good Reason or the Company
          terminates your employment for Cause, the Company will pay to you the
          Accrued Amounts.

     24.  Restrictive Covenants.

          (a)  Confidential Information. During your employment with the Company
               and thereafter, you will hold in a fiduciary capacity for the
               benefit of the Company all secret or confidential information,
               knowledge or data relating to the Company and any of its
               affiliated companies and their respective businesses that you
               obtain during your employment by the Company that is not public
               knowledge (other than as a result of your violation of this
               paragraph) ("Confidential Information"). You will not use,
               communicate, divulge or disseminate Confidential Information at
               any time during or

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Lyle G. Heideman
May 25, 2005
Page 10

               after your employment with the Company, except (i) as required in
               the usual and reasonable performance of your duties, (ii) with
               the prior written consent of the Company or (iii) as otherwise
               required by law or legal process.

          (b)  Non-Competition and Non-Solicit. During your employment with the
               Company and for a period of twenty-four (24) months after
               termination of your employment for any reason, you will not,
               without the written consent of the Board, directly or indirectly,
               from any location, (i) render services or be interested in (as
               owner, partner, stockholder, employee, director, officer, agent,
               consultant or otherwise), with or without compensation, any
               entity which conducts a business which is in material competition
               with any line of business actively being conducted by the Company
               or any of its subsidiaries or affiliates or its members on the
               date of the termination of your employment (provided that you are
               not prohibited from employment with a business of a material
               competitor if such business is not in material competition with
               any line of business actively being conducted by the Company or
               any of its subsidiaries or affiliates or its members on your date
               of termination and so long as you have no involvement or
               responsibility in connection with any competitive business
               conducted by such entity); (ii) solicit, entice, persuade or
               induce any person to leave the employment of the Company or any
               of its subsidiaries or affiliates or hire any person who was
               employed by the Company or any of its subsidiaries or affiliates
               within the twelve (12) month period preceding the date of such
               hiring; or (iii) solicit, entice, persuade or induce any person
               or entity doing business with the Company and its subsidiaries or
               affiliates, to terminate such relationship or to alter such
               relationship in a way adverse to the Company. Nothing herein,
               however, will prohibit you from acquiring or holding not more
               than one percent (1%) of any class of publicly traded securities
               of any such business; provided that such securities entitle you
               to no more than one percent (1%) of the total outstanding votes
               entitled to be cast by security holders of such business in
               matters on which such security holders are entitled to vote.

          (c)  You agree that the restrictions set forth in Paragraphs 24(a) and
               (b) above are reasonable and necessary to protect the legal
               interests of the Company. You further agree that the Company is
               entitled to seek injunctive relief in the event of any actual or
               threatened breach of such restrictions without posting any bond
               or other security and without the necessity of proof of actual
               damage. Without limiting the availability of injunctive relief,
               you agree that if your employment with the Company is terminated
               in a manner which otherwise entitles you to severance pay and
               benefits under Paragraphs 19(b)-(d) or to a bonus payment under
               Paragraph 21(b) and the

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Lyle G. Heideman
May 25, 2005
Page 11

               Company reasonably determines that you have violated any such
               restriction, you will promptly repay to the Company any cash
               payments made to you pursuant to Paragraphs 19(b)-(d) or
               Paragraph 21(b), as applicable, and the Company shall have no
               further obligation to you pursuant to any of such Paragraphs.

     25.  Successors.

          (a)  This Agreement is personal to you and, without the prior written
               consent of the Company, will not be assignable by you. This
               Agreement shall inure to the benefit of and be enforceable by
               your legal representatives.

          (b)  This Agreement will inure to the benefit of and be binding upon
               the Company and its successors and assigns. The Company will
               require any successor (whether direct or indirect, by purchase,
               merger, consolidation or otherwise) to all or substantially all
               of the business and/or assets of the Company expressly to assume
               and agree to perform this Agreement in the same manner and to the
               same extent that the Company would have been required to perform
               it if no such succession had taken place. As used in this
               Agreement, the "Company" shall mean both the Company as defined
               above and any such successor that assumes and agrees to perform
               this Agreement, by operation of law or otherwise.

     26.  Notice. All notices and other communications under this Agreement
          shall be in writing and shall be given by hand delivery to the other
          party or by registered or certified mail, return receipt requested,
          postage prepaid, addressed as follows:

               (i)    If to the Executive:

                      Lyle G. Heidemann
                      4009 Oak Ridge Road
                      Crystal Lake, IL 60012

               (ii)   If to the Company:

                      True Value Company
                      8600 West Bryn Mawr Avenue
                      Chicago, IL 60631
                      Attn:  General Counsel

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Lyle G. Heideman
May 25, 2005
Page 12

          or to such other address as either party furnishes to the other in
          writing in accordance with this Paragraph 26. Notices and
          communications shall be effective when actually received by the
          addressee.

     27.  Miscellaneous.

          (a)  This Agreement will be governed by, and construed in accordance
               with, the laws of the State of Illinois, without reference to
               principles of conflict of laws. Any action, suit or proceeding
               arising out of any claim against you or the Company pursuant to
               this Agreement will be brought exclusively in the federal or
               state courts located in Cook County, Illinois.

          (b)  The captions of this Agreement are not part of the provisions
               hereof and will have no force or effect.

          (c)  The invalidity or unenforceability of any provision of this
               Agreement will not affect the validity or enforceability of any
               other provision of this Agreement. If any provision of this
               Agreement is held invalid or unenforceable in part, the remaining
               portion of such provision, together with all other provisions of
               this Agreement, will remain valid and enforceable and continue in
               full force and effect to the fullest extent consistent with law.

          (d)  Notwithstanding any other provision of this Agreement, the
               Company may withhold from amounts payable under this Agreement
               all federal, state, local and foreign taxes that are required to
               be withheld by applicable laws or regulations.

          (e)  Your or the Company's failure to insist upon strict compliance
               with any provisions of, or to assert any right under, this
               Agreement shall not be deemed to be a waiver of such provision or
               right or of any other provision of or right under this Agreement.

          (f)  You and the Company acknowledge that this Agreement constitutes
               the entire understanding of the parties with respect to the
               subject matter hereof and supersede any other prior agreement or
               other understanding, whether oral or written, express or implied,
               between you and the Company concerning, related to or otherwise
               in connection with, the subject matter hereof and that, as of the
               date first written above, no such agreement or understanding
               shall be of any further force or effect.

          (g)  This Agreement may not be amended or modified except by a written
               agreement executed by the parties hereto or their respective
               successors and legal representatives.

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Lyle G. Heideman
May 25, 2005
Page 13

          (h)  Your rights and benefits under this Agreement may not be
               anticipated, assigned, alienated or subject to attachment,
               garnishment, levy, execution or other legal or equitable process
               except as required by law. Any attempt by you to anticipate,
               alienate, assign, sell, transfer, pledge, encumber or charge the
               same shall be void.

          (i)  To the extent necessary to effectuate the terms of this
               Agreement, provisions of this Agreement that are intended to have
               effect after the Date of Termination or the termination of this
               Agreement shall survive thereafter.

          (j)  This Agreement may be executed in several counterparts, each of
               which shall be deemed an original, and such counterparts will
               constitute one and the same instrument. A facsimile signature
               shall be as valid in all respects as an original signature.

          (k)  The parties hereto participated jointly in the negotiation and
               preparation of this Agreement, and each party has had the
               opportunity to obtain the advice of legal counsel and to review
               and comment upon the Agreement. Accordingly, it is agreed that no
               rule of construction shall apply against any party or in favor of
               any party. This Agreement shall be construed as if the parties
               jointly prepared this Agreement, and any uncertainty or ambiguity
               shall not be interpreted against one party and in favor of the
               other.

     Please acknowledge your agreement and acceptance of this Agreement by
signing and dating where indicated below and returning a copy to the
undersigned.

                                           Sincerely,

                                           True Value Company
                                           Board of Directors

                                           By /s/ B. R. Ableidinger
                                           --------------------------
                                                   Director

Accepted and agreed to this 26th day of
May, 2005

By /s/ Lyle G. Heidemann
--------------------------------
       Lyle G. Heidemann<PAGE>
                                                                    EXHIBIT 10.5

                          RESTRICTED STOCK CERTIFICATE

                                Non-transferable

                                    GRANT TO

                               ------------------

                      by LHC Group, Inc. (the "Company") of

           shares of its common stock, $0.01 par value (the "Shares")

pursuant to and subject to the provisions of the LHC Group, Inc. 2005
Non-Employee Directors Compensation Plan, which is a sub-plan of the LHC Group,
Inc. 2005 Incentive Plan (the "Plan") and to the terms and conditions set forth
on the following page (the "Terms and Conditions"). By accepting the Shares,
Grantee shall be deemed to have agreed to the terms and conditions set forth in
this Certificate and the Plan.

         Unless sooner vested in accordance with Section 3 of the Terms and
Conditions, the restrictions imposed under Section 2 of the Terms and Conditions
will expire as to one-third of the Shares awarded hereunder on the Grant Date
and on each of the first two anniversaries of the Grant Date, provided that
Grantee is then still serving as a director of the Company:

         IN WITNESS WHEREOF, LHC Group, Inc., acting by and through its duly
authorized officers, has caused this Certificate to be executed as of the Grant
Date.

                                                 LHC GROUP, INC.

                                                 By:
                                                    ---------------------------
                                                     Its:  Authorized Officer

                                                 Grant Date:
                                                             ------------------
<PAGE>

TERMS AND CONDITIONS

1. Grant of Shares. The Company hereby grants to the Grantee named on page 1
hereof ("Grantee"), subject to the restrictions and the other terms and
conditions set forth in the Plan and in this award certificate (this
"Certificate"), the number of shares indicated on page 1 hereof of the Company's
$0.01 par value common stock (the "Shares"). Capitalized terms used herein and
not otherwise defined shall have the meanings assigned to such terms in the
Plan.

2. Restrictions. The Shares are subject to each of the following restrictions.
"Restricted Shares" mean those Shares that are subject to the restrictions
imposed hereunder which restrictions have not then expired or terminated.
Restricted Shares may not be sold, transferred, exchanged, assigned, pledged,
hypothecated or otherwise encumbered. If Grantee's service as a director of the
Company or any Affiliate terminates for any reason other than as set forth in
paragraph (b) of Section 3 hereof, then Grantee shall forfeit all of Grantee's
right, title and interest in and to the Restricted Shares as of the date of
termination of service, and such Restricted Shares shall revert to the Company
immediately following the event of forfeiture. The restrictions imposed under
this Section shall apply to all shares of the Company's common stock or other
securities issued with respect to Restricted Shares hereunder in connection with
any merger, reorganization, consolidation, recapitalization, stock dividend or
other change in corporate structure affecting the common stock of the Company.

3. Expiration and Termination of Restrictions. The restrictions imposed under
Section 2 will expire on the earliest to occur of the following (the period
prior to such expiration being referred to herein as the "Restricted Period"):

         (a)      as to one-third of the Shares specified on page 1 hereof, on
                  the Grant Date and on the first two anniversaries of the Grant
                  Date, provided that Grantee is then still serving as a
                  director of the Company; or

         (b)      the date of termination of Grantee's service as a director of
                  the Company due to his or her death, Disability or Retirement.

4. Delivery of Shares. The Shares will be registered in the name of Grantee as
of the Grant Date and may be held by the Company during the Restricted Period in
certificated or uncertificated form. If a certificate for Restricted Shares is
issued during the Restricted Period with respect to such Shares, such
certificate shall be registered in the name of Grantee and shall bear a legend
in substantially the following form (in addition to any legend required under
applicable state securities laws): "This certificate and the shares of stock
represented hereby are subject to the terms and conditions (including forfeiture
and restrictions against transfer) contained in a Restricted Stock Certificate
between the registered owner of the shares represented hereby and LHC Group,
Inc. Release from such terms and conditions shall be made only in accordance
with the provisions of such Certificate, copies of which are on file in the
offices of LHC Group, Inc." Stock certificates for the Shares, without the first
above legend, shall be delivered to Grantee or Grantee's designee upon request
of Grantee after the expiration of the Restricted Period, but delivery may be
postponed for such period as may be required for the Company with reasonable
diligence to comply, if deemed advisable by the Company, with registration
requirements under the 1933 Act, listing requirements under the rules of any
stock exchange or the Nasdaq national market, and requirements under any other
law or regulation applicable to the issuance or transfer of the Shares.

5. Voting and Dividend Rights. Grantee, as beneficial owner of the Shares, shall
have full voting and dividend rights with respect to the Shares during and after
the Restricted Period. If Grantee forfeits any rights he may have under this
Certificate, Grantee shall no longer have any rights as a stockholder with
respect to the Restricted Shares or any interest therein and Grantee shall no
longer be entitled to receive dividends on such stock. In the event that for any
reason Grantee shall have received dividends upon such stock after such
forfeiture, Grantee shall repay to the Company any amount equal to such
dividends.

6. Changes in Capital Structure. The provisions of the Plan shall apply in the
case of a change in the capital structure of the Company. Without limiting the
foregoing, in the event of a subdivision of the outstanding Stock (stock-split),
a declaration of a dividend payable in Stock, or a combination or consolidation
of the outstanding Stock into a lesser number of shares, the Shares then subject
to this Certificate shall automatically be adjusted proportionately.

7. Payment of Taxes. Upon issuance of the Shares hereunder, Grantee may make an
election to be taxed upon such award under Section 83(b) of the Code. To effect
such election, Grantee may file an appropriate election with Internal Revenue
Service within thirty (30) days after award of the Shares and otherwise in
accordance with applicable Treasury Regulations. Grantee will, no later than the
date as of which any amount related to the Shares first becomes includable in
Grantee's gross income for federal income tax purposes, pay to the Company, or
make other arrangements satisfactory to the Committee regarding payment of, any
federal, state and local taxes of any kind required by law to be withheld with
respect to such amount. The obligations of the Company under this Certificate
will be conditional on such payment or arrangements, and the Company, and, where
applicable, its Affiliates will, to the extent permitted by law, have the right
to deduct any such taxes from the award or any payment of any kind otherwise due
to Grantee.

8. Amendment. The Committee may amend, modify or terminate this Certificate
without approval of Grantee; provided, however, that such amendment,
modification or termination shall not, without Grantee's consent, reduce or
diminish the value of this award determined as if it had been fully vested on
the date of such amendment or termination.

9. Plan Controls. The terms contained in the Plan are incorporated into and made
a part of this Certificate and this Certificate shall be governed by and
construed in accordance with the Plan. In the event of any actual or alleged
conflict between the provisions of the Plan and the provisions of this
Certificate, the provisions of the Plan shall be controlling and determinative.

10. Severability. If any one or more of the provisions contained in this
Certificate is deemed to be invalid, illegal or unenforceable, the other
provisions of this Certificate will be construed and enforced as if the invalid,
illegal or unenforceable provision had never been included.

11. Notice. Notices and communications under this Certificate must be in writing
and either personally delivered or sent by registered or certified United States
mail, return receipt requested, postage prepaid. Notices to the Company must be
addressed to LHC Group, Inc., 420 West Lafayette, LA 70503; Attn: Secretary, or
any other address designated by the Company in a written notice to Grantee.
Notices to Grantee will be directed to the address of Grantee then currently on
file with the Company, or at any other address given by Grantee in a written
notice to the Company.

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