Document:

exv10w3

Exhibit 10.3

AMENDMENT NO. 1 TO

EMPLOYMENT AGREEMENT

AMENDMENT NO. 1 TO EMPLOYMENT AGREEMENT (“Amendment”), executed and effective as of December ___,
2008 by and between COLLECTIVE BRANDS, INC., formerly known as Payless ShoeSource, Inc., a Delaware
corporation (“CBI”), and                      (“Executive”).

WHEREAS, CBI and the Executive are parties to the employment agreement entered into                      (“Employment
Agreement”).

WHEREAS, in order to avoid certain adverse federal income tax consequences to Executive under the
Employment Agreement as a result of Section 409A of the Internal Revenue Code of 1986, as amended,
relating to deferred compensation, CBI desires to implement certain amendments to the Employment
Agreement; and

WHEREAS, CBI and Executive desire to amend the Employment Agreement.

NOW, THEREFORE:

Section 1. Amendment to Section 8(b)(viii). The following will be added to Section
8(b)(viii):

“such special payment will be paid by the later of (x) 2 1/2 months from the end of
Collective’s fiscal year in which Executive’s employment terminates and (y) April
15th of the year following the year in which Executive’s employment terminates;”

Section 2. Amendment to Section 8(b)(x). Section 8(b)(x) shall be replaced in its
entirety with the following:

“(x) [Intentionally omitted.]”

Section 3. Amendment to Section 9. The last sentence of Section 9 shall be replaced in
its entirety with the following:

“Provided, however, the payments of the amounts specified in Paragraph 8(b)(iv), (v),
(viii) and (ix) are conditioned on Executive’s delivery and non-revocation of a valid and
effective release, in substantially the form attached hereto as Appendix A within
fifty-five (55) days following the date of Executive’s termination from employment.”

 

 

Section 4. Amendment to Section 14 {Section 12 with respect to the amendment to Douglas G.
Boessen’s employment agreement}. The first sentence of Section 14 shall be replaced in its
entirety with the following:

“This Agreement may not be changed, amended, or modified in any manner except by a written
instrument in writing signed by both the parties here, except as described in Section 19
herein.”

Section 5. Addition of Section 19{Section 19 with respect to the amendment to Douglas G.
Boessen’s employment agreement}. Section 19 {18 for Boessen} shall be inserted as follows:

“Section 409A.

     (a) This Agreement is intended to satisfy the requirements of Section 409A of the
Internal revenue code of 1986, as amended (‘Section 409A’) with respect to amounts, if
any, subject thereto and shall be interpreted and construed and shall be performed by
the parties consistent with such intent. If either party notifies the other in writing
that, based on the advice of legal counsel, one or more or the provisions of this
Agreement contravenes any Treasury Regulations or guidance promulgated under Section
409A or causes any amounts to be subject to interest, additional tax or penalties under
Section 409A, the parties shall promptly and reasonably consult with each other (and
with their legal counsel), and shall use their reasonable best efforts to reform the
provisions hereof to (a) maintain to the maximum extent practicable the original intent
of the applicable provisions without violating the provisions of Section 409A or
increasing the costs to Collective of providing the applicable benefit or payment;
provide, however, de minimis costs associated with the implementation of such 409A
reforms shall be considered reasonable and not an increase under this subsection (a),
and (b) to the extent possible, to avoid the imposition of any interest, additional tax
or other penalties under Section 409A upon Executive or Collective.

     (b) To the extent Executive would otherwise be entitled to any payment under this
Agreement, or any plan or arrangement of Collective or its affiliates, that constitutes
a ‘deferral of compensation’ subject to Section 409A and that if paid during the six
(6) months beginning on the date of termination of Executive’s employment would be
subject to the Section 409A, additional tax because Executive is a ‘specified employee’
(within the meaning of Section 409A and as determined by Collective), the payment will
be paid to Executive on the earlier of the six (6) month anniversary of Executive’s
date of termination or Executive’s death.

     (c) Similarly, to the extent Executive would otherwise be entitled to any benefit
(other than a payment) during the six (6) months beginning on termination of
Executive’s employment that would be subject to the Section

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409A additional tax, the benefit will be delayed and will begin being provided
(together, if applicable, with an adjustment to compensate Executive for the delay) on
the earlier of the first day following the six (6) month anniversary of Executive’s
date of termination or Executive’s death.

     (d) Any payment or benefit due upon a termination of Executive’s employment that
represents a ‘deferral of compensation’ within the meaning of Section 409A shall be
paid or provided to Executive only upon a ‘separation from service’ as defined in
Treas. Reg. § 1.409A-1(h). Each payment made under Section 8 of this Agreement shall
be deemed to be a separate payment for purposes of Section 409A. Amounts payable under
Section 8 of this Agreement shall be deemed not to be a ‘deferral of compensation’
subject to Section 409A to the extent provided in the exceptions in Treasury Regulation
§§ 1.409A-1(b)(4) (‘short-term deferrals’) and (b)(9) (‘separation pay plans,’
including the exception under subparagraph (iii)) and other applicable provisions of
Treasury Regulation § 1.409A-1 through A-6.

     (e) Notwithstanding anything to the contrary in this Agreement or elsewhere, any
payment or benefit under this Agreement or otherwise that is exempt from Section 409A
pursuant to Treasury Regulation § 1.409A-1(b)(9)(v)(A) or (C) (relating to certain
reimbursements and in-kind benefits) shall be paid or provided to Executive only to the
extent that the expenses are not incurred, or the benefits are not provided, beyond the
last day of the second calendar year following the calendar year in which Executive’s
‘separation from service’ occurs; and provided further that such expenses are
reimbursed no later than the last day of the third calendar year following the calendar
year in which Executive’s ‘separation from service’ occurs.  To the extent any expense
reimbursement or the provision of any in-kind benefit is determined to be subject to
Section 409A (and not exempt pursuant to the prior sentence or otherwise), the amount
of any such expenses eligible for reimbursement, or the provision of any in-kind
benefit, in one calendar year shall not affect the expenses eligible for reimbursement
in any other calendar year (except for any life-time or other aggregate limitation
applicable to medical expenses), in no event shall any expenses be reimbursed after the
last day of the calendar year following the calendar year in which Executive incurred
such expenses, and in no event shall any right to reimbursement or the provision of any
in-kind benefit be subject to liquidation or exchange for another benefit.”

Section 6. Effectiveness of Amendment. This Amendment shall become effective on the date
hereof.

Section 7. Definitions. Capitalized terms that are not defined in this Amendment shall have
the meanings ascribed thereto in the Employment Agreement.

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Section 8. Other Provisions Unaffected. Except as modified by this Amendment, the existing
provisions of the Employment Agreement shall remain in full force and effect.

	 	 	 	 	 	 	 
	 	 	COLLECTIVE BRANDS, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Name:	 	 	 	 
	 

	 	Its:	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	EXECUTIVE	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 

 

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WAIVER AND RELEASE

THIS WAIVER AND RELEASE (this “Waiver and Release”) is entered into by and between Collective
Brands, Inc., a Delaware corporation (the “Company”) and                                          (the “Executive”) pursuant to that certain
Employment Agreement executed by and between the Company and the Executive on the                      day of                      , as
amended from time to time (the “Employment Agreement”). The Company and the Executive hereby agree
knowingly and voluntarily as follows:

          1. In consideration of the payments and benefits pursuant to the Employment Agreement (the
“Benefits”) the Executive agrees that the Benefits constitute consideration for this agreement to
which the Executive would not otherwise be entitled and are in lieu of any rights or claims that
the Executive may have with respect to separation or severance benefits, or any other form of
remuneration from the Company or any of its affiliates, and in consideration thereof, after the
opportunity to consult legal counsel, the Executive hereby for himself, and his heirs, agents,
executors, successors, assigns and administrators (collectively, “Related Parties”), forever
releases, remises, and discharges, in all their capacities, the Company and all of its affiliates
or subsidiaries, and any of their present or former directors, employees, fiduciaries,
representatives, officers and agents, successors and assigns (collectively, the “Releasees”)
individually and in their official capacities, of and from all covenants, obligations, liabilities
and agreements, and forever waives all claims, rights and causes of action whatsoever, in law or in
equity, whether known or unknown, asserted or unasserted, suspected or unsuspected, that the
Executive or any Related Parties ever had, may have in the future or have now in connection with or
arising from the Executive’s employment relationship with the Company or termination of the
Executive’s employment relationship with the Company; including, without limitation, any claims,
rights and causes of action under United States federal, state or local law, regulation or
decision, and the national or local law (statutory or decisional) of any foreign country,
including, without limitation, those under the Age Discrimination in Employment Act, as amended
29 U.S.C. §§621 et. seq., the Older Workers Benefit Protection Act, 29 U.S.C. §626
(f)(1), Title VII of the Civil Rights Act of 1964, the Civil Rights Act of 1991, the Americans with
Disabilities Act, 42 U.S.C. §§12101-12213, the Employee Retirement Income Security Act of 1974, as
amended (“ERISA”), the Family and Medical Leave Act of 1993, the Fair Labor Standards Act,

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and any other similar or related law, regulation or decision relating to or dealing with
discrimination including, without limitation, any claims, rights or causes of action for punitive
damages, attorney’s fees, expenses and costs of litigation. Notwithstanding the foregoing, the
Executive and Related Parties do not release or waive any right or claim (i) the Executive and
Related Parties may have to obtain post-employment payments and benefits, if any, and exercise any
rights pursuant to the Employment Agreement or award thereunder (including, but not limited to,
paragraph[s] ______ thereof; (ii) to obtain post-employment payments and benefits and exercise any rights
under any plan or agreement referred to in the Employment Agreement or award thereunder (iii) under
ERISA to obtain post-employment payments and benefits under any employee benefit plan (as defined
in ERISA); (iv) for indemnification and advancement of fees and expenses under any agreement with
or policy of the Company or its affiliates relating to indemnification and advancement of fees and
expenses of directors or officers or under any provision of the Company’s articles or by-laws
relating to indemnification of directors or officers; (v) under any policy of directors’ or
officers’ liability insurance; (vi) that arises against the Company after the date of this Waiver
and Release; and (vii) to obtain contribution as permitted by law in the event of entry of judgment
against the Executive and the Company as a result of any act or failure to act for which the
Executive and the Company are jointly liable.

          2. The Executive represents that he has not filed, and will not hereafter file, any claim
against the Company relating to his employment and/or cessation of employment with the Company, or
otherwise involving facts that occurred on or prior to the date that Executive has signed this
Waiver and Release except as permitted under paragraph 1 hereof.

          3. The Executive understands and agrees that if Executive commences, continues, joins in, or
in any other manner attempts to assert any claim released herein against the Company, or otherwise
materially violates the terms of this Waiver and Release, the Executive will cease to have any
further rights to the Benefits from the Company referred to in the first paragraph of this Waiver
and Release.

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          4. In consideration for the Executive’s release and waiver of claims herein and other good and
valuable consideration, the Company, on behalf of itself and
the Releasees, forever releases, remises and discharges, in all their capacities, the
Executive and the Related Parties, individually and in their official capacities, of and from all
covenants, obligations, liabilities and agreements, and forever waives all claims, rights and
causes of action whatsoever, in law or in equity, whether known or unknown, asserted or unasserted,
suspected or unsuspected, that the Company or any of the Releasees ever had, may have in the future
or have now in connection with or arising from the Executive’s employment relationship with the
Company or termination of the Executive’s employment relationship with the Company; including,
without limitation, any claims, rights and causes of action under United States federal, state or
local law, regulation or decision, and the national or local law (statutory or decisional) of any
foreign country. Notwithstanding the foregoing, the Company and the Releasees do not release or
waive (i) any right or claim that arises against the Executive after the date of this Waiver and
Release, (ii) any claim against the Executive based on intentional misconduct, fraud,
misappropriation or gross neglect or (iii) any right the Company and the Releasees may have to
obtain contribution as permitted by law in the event of entry of judgment against the Executive and
the Company as a result of any act or failure to act for which the Executive and the Company are
jointly liable.

          5. The Executive understands and agrees that the payments by the Company to the Executive of
any Benefits and the signing of this Waiver and Release by the Executive do not in any way indicate
that the Executive has any viable claims against the Company or that the Company admits any
liability to the Executive whatsoever.

          6. The Executive affirms that, prior to the execution of this Waiver and Release, the
Executive was advised by an attorney of the Executive’s choice concerning the terms and conditions
set forth herein, and that the Executive was given up to twenty-one (21) days to consider
(notwithstanding the time lapsed, if any, during such twenty-one day period to review and revise)
this Waiver and Release and its consequences. The Executive has seven (7) days following the
Executive’s signing of this Waiver and Release to revoke and cancel the terms and conditions
contained herein, and the terms and conditions of this Waiver and Release shall not become
effective or enforceable until such revocation period has expired.

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     IN WITNESS WHEREOF, the parties hereto have executed this Waiver and Release this                      day of                      ,       
              .

	 	 	 	 	 	 	 
	 	 	EXECUTIVE:	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	COMPANY:	 	 
	 
	 	 	 	 	 	 
	 	 	COLLECTIVE BRANDS, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 	 	 

-8-exv10w4

Exhibit 10.4

AMENDMENT NO. 1 TO

CHANGE OF CONTROL AGREEMENT

AMENDMENT NO. 1 TO CHANGE OF CONTROL AGREEMENT (“Amendment”), executed and effective as of
December 19, 2008 by and between COLLECTIVE BRANDS, INC., formerly known as Payless ShoeSource,
Inc., a Delaware corporation (“CBI”), and
                     (“Executive”).

WHEREAS, CBI and Executive are parties to the amended and restated change of control agreement
entered into                      (“Change of Control Agreement”).

WHEREAS, in order to avoid certain adverse federal income tax consequences to Executive under the
Change of Control Agreement as a result of Sections 162(m) and 409A of the Internal Revenue Code of
1986, as amended, relating to deferred compensation, CBI desires to implement certain amendments to
the Change of Control Agreement; and

WHEREAS, CBI and Executive desire to amend the Change of Control Agreement.

NOW, THEREFORE:

Section 1. Amendment to Section 4(c). Section 4(c) will be replaced in its entirety with
the following:

          “(c) Good Reason. The Executive’s employment may be terminated by the
Executive for Good Reason. ‘Good Reason’ means in the absence of a written consent by the
Executive:

	 	1.	 	the assignment to the Executive of any
duties inconsistent in any material respect with the Executive’s
position (including status, offices, titles and reporting
requirements), authority, duties or responsibilities as contemplated
by Section 3(a) of this Agreement, or any other action by the Company
that results in a material diminution in such position, authority,
duties or responsibilities;
	 
	 	2.	 	any other action or inaction that
constitutes a material breach of the terms of the Agreement;
	 
	 	3.	 	the Company’s requiring the Executive to be
based at any office or location different than the office the
Executive was employed immediately preceding the Effective Date if
such relocation increases Executive’s one-way commute from the
Executive’s principal residence by more than 35 miles;

 

 

	 	4.	 	any purported termination by the Company of
the Executive’s employment otherwise than as expressly permitted by
this Agreement; or
	 
	 	5.	 	any failure by the Company to comply with
and satisfy Section 10(c).

Anything in this Agreement to the contrary notwithstanding a termination by the Executive
for any reason during the 30-day period immediately following the first anniversary of a
Change of Control shall be deemed to be a termination for Good Reason for all purposes of
this Agreement.”

Section 2. Addition of Section 4(f). Section 4(f) shall be inserted as follows:

        “(f) Notice of Good Reason. Prior to complying with Sections 4(d) and 11(b),
(1) the Executive must provide written notification of the Executive’s intention to resign
within 90 days after the Executive knows or has reason to know of the occurrence of any
such event in Sections 4(c)(1)-(5) constituting Good Reason, (2) the Company shall have 30
days from the receipt of such notice to effect a cure of the condition constituting Good
Reason under Section 4(c) and (3) if the Company is unable to cure the condition
constituting Good Reason within the 30-day period then the Executive must terminate his
employment within two years from the date such event constituting Good Reason occurred,
otherwise the event will no longer constitute Good Reason. For the avoidance of doubt,
Good Reason will not include any isolated, insubstantial and inadvertent action not taken
in bad faith by the Company and that is cured promptly upon receiving notice from the
Executive.”

Section 3. Amendment to Section 5(a). The introductory language to Section 5(a)(A) shall
be replaced in its entirety with the following:

“(A) the Company shall pay to the Executive, in a lump sum in cash within 30 days after
the Date of Termination, (provided, however, that no amount shall be paid pursuant to this
Subsection 5(a)(A) after March 15 of the year following the first anniversary of a Change
of Control), the aggregate of the following amount:”

Section 4. Amendment to Section 5(e). The following shall be added at the end of Section
5(e):

“, except that no amount shall be paid pursuant to clause (ii) of the first paragraph of
Section 5(a)(A) of this Agreement (relating to a fractional payment of the highest Annual
Bonus) and the amount specified in Appendix A shall be paid at the same time as the other
amounts specified in Section 5(a)(A) are paid.”

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Section 5. Amendment to Section 8(a). The following language shall be included at the end
of Section 8(a):

“The reduction of amounts payable hereunder, if applicable, shall be determined in manner
which has the least economic cost to the Executive and, to the extent the economic cost is
equivalent, then all the Payments, in the aggregate will be reduced in the inverse order of
when all the Payments, in the aggregate, would have been made to the Executive until the
reduction specified is achieved.”

Section 6. Amendment to Section 11(f). Section 11(f) will be replaced in its entirety
with the following:

“(f) From and after the Effective Date or the date that a Potential Change in Control
occurs, and except as expressly set forth herein, this Agreement shall supersede any other
agreement between the parties with respect to the subject matter hereof, including the
employment agreement, dated as of                                          (the ‘Employment Agreement’); provided, however, in no
event shall this Agreement supersede or replace the Indemnification Agreement between the
Executive and the Company, dated as of                                         , as from time to time amended prior to the
Effective Date; and provided further that, to the extent not inconsistent with any
provision hereof, the following provisions of the Employment Agreement shall remain in
effect during the Change of Control Period: Section 4 (relating to non-competition),
Section 10 (relating to certain remedies that the Company and the Executive shall have),
and Section 19 (relating to Section 409A, with any references in that provision to other
sections of the Employment Agreement also being deemed references to similar provisions of
this Agreement, as appropriate, so as to give maximum effect to such provision).”

Section 7. Effectiveness of Amendment. This Amendment shall become effective on the date
hereof.

Section 8. Definitions. Capitalized terms that are not defined in this Amendment shall
have the meanings ascribed thereto in the Change of Control Agreement.

Section 9. Other Provisions Unaffected. Except as modified by this Amendment, the
existing provisions of the Change of Control Agreement shall remain in full force and effect.

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	 	 	COLLECTIVE BRANDS, INC.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	Name:
	 	 

	 	 
	 

	 	Its:	 	 	 	 
	 
	 	 	 	 	 	 
	 	 	EXECUTIVE	 	 
	 
	 	 	 	 	 	 
	 

	 	By:	 	 	 	 
	 

	 	 	 	 

	 	 

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APPENDIX A

CHART OF SEVERANCE PAYMENT UNDER SECTION 5(E)

FOR EACH EXECUTIVE OFFICER

DOUGLAS J. TREFF

	 	 	 	 	 
	Fiscal Quarter in which	 	 
	Date of Termination	 	Payment under Section
	Occurs	 	5(E) $
	First Fiscal Quarter
	 	$	260,000	 
	Second Fiscal Quarter
	 	$	380,000	 
	Third Fiscal Quarter
	 	$	510,000	 
	Fourth Fiscal Quarter
	 	$	630,000	 

DARREL J. PAVELKA

	 	 	 	 	 
	Fiscal Quarter in which	 	 
	Date of Termination	 	Payment under Section
	Occurs	 	5(E) $
	First Fiscal Quarter
	 	$	260,000	 
	Second Fiscal Quarter
	 	$	380,000	 
	Third Fiscal Quarter
	 	$	510,000	 
	Fourth Fiscal Quarter
	 	$	620,000	 

MICHAEL J. MASSEY

	 	 	 	 	 
	Fiscal Quarter in which	 	 
	Date of Termination	 	Payment under Section
	Occurs	 	5(E) $
	First Fiscal Quarter
	 	$	180,000	 
	Second Fiscal Quarter
	 	$	250,000	 
	Third Fiscal Quarter
	 	$	330,000	 
	Fourth Fiscal Quarter
	 	$	410,000	 

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BETTY J. CLICK

	 	 	 	 	 
	Fiscal Quarter in which	 	 
	Date of Termination	 	Payment under Section
	Occurs	 	5(E) $
	First Fiscal Quarter
	 	$	150,000	 
	Second Fiscal Quarter
	 	$	220,000	 
	Third Fiscal Quarter
	 	$	290,000	 
	Fourth Fiscal Quarter
	 	$	350,000	 

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