Document:

Letter from Registrant to James H. Haworth relating to employment

 EXHIBIT 10.40 
 SEARS HOLDINGS 
  

					
	  	 	  	 	J. DAVID WORKS
		 		 	 Senior Vice President and President, Talent and
 Human Capital Services

 November 3, 2009 

Mr. James Haworth 
 House 272 Lane 418 Yun
Jian Road 
 Shanghai, China 200135 

Dear Jim, 
 We are pleased to extend to you our
offer to join Sears Holdings Corporation (SHC) as Executive Vice President and President, Retail Services. You will be a member of the Holding Company Business Unit as well as a member of the Holding Company Business Unit’s board of directors.
In your capacity as President of Retail Services, you will report to the board of directors for Retail Services Business Unit. Your start date will be January 31, 2010. This letter serves as confirmation of our offer; provided, however, that
this offer is contingent upon you providing to SHC documentation satisfactory to SHC that demonstrates you are not subject to any agreement with your current employer that you would be violating if you accept this offer based upon a January 31,
2010 start date (including without limitation any notice required to terminate your contract of employment with your current employer or a non-competition provision that may apply to SHC). Further, this offer is subject to the approval of the
Compensation Committee (“Compensation Committee”) of SHC’s Board of Directors. 
 The key elements of your compensation package
are as follows: 
  

	 	•	 	 Annual base salary at a rate of $800,000. 

  

	 	•	 	 Beginning in fiscal 2010, you will have an annual incentive opportunity of 100% of your base salary under the Annual Incentive Plan. (If your start
date is after January 31, 2010, the first day of SHC’s 2010 fiscal year, your target incentive under the Sears Holdings Corporation 2010 Annual Incentive Plan (“2010 AIP”) will be prorated from your start date through
January 29, 2011, the last day of SHC’s 2010 fiscal year.) With respect to the 2010 fiscal year, you will receive an incentive payment by April 15, 2011 equal to the greater of (a) the actual incentive earned and payable under
the 2010 AIP or (b) twenty-five percent (25%) of your 2010 incentive opportunity referred to above. The portion, if any, of your 2010 incentive payment that is greater than the actual amount payable from the 2010 AIP will be paid by the
Company outside of the 2010 AIP and referred to as the “Special Incentive Award”. In the event you voluntarily terminate your employment with SHC or are terminated by SHC for Cause (as defined in the Executive Severance Agreement,
referred to below) within twenty four (24) months of your start date, you will be required to repay this Special Incentive Award to the company. Any incentive (including the Special Incentive Award) payable with respect to a fiscal year
will be paid by April 15 of the following fiscal year, provided that you are actively employed at the payment date. 

  

	 	•	 	 Participation in the Sears Holdings Corporation Long-Term Incentive Program (“LTIP”). Sears Holdings Corporation has historically provided
annual LTIP awards to its executives, with performance cycles of three (3) years and award amounts established as a percentage of base salary. You will first become eligible to participate in an LTIP award starting with the 2010 program as then
approved by the Compensation Committee of SHC’s Board of Directors. You will be eligible to participate in the Sears Holdings Corporation 2010 Long-Term Incentive Program (“2010 LTIP”) at 150% of your base salary. (Again, if your
start date is after January 31, 2010, your target award under the 2010 LTIP will be prorated based on the date during the 

 Mr. Haworth 
 November 14, 2009 
  Page 
 2
 
  

	 	 
performance period that you become a participant.) Details of this 2010 LTIP have yet to be determined. 

 

	 	•	 	 You will receive a grant of restricted stock valued at $750,000 under the Sears Holdings Corporation 2006 Stock Plan. The number of restricted shares
granted will be determined using the market closing price of Sears Holdings shares on the grant date. The grant date will be the first (1st) business day following the later of (a) the date upon which we receive both your executed Executive
Severance Agreement (see below) and the approval of the Compensation Committee or (b) your start date. The restricted shares granted will be scheduled to vest in full on the third anniversary of the grant date. Your restricted stock grant is
contingent upon you signing the Executive Severance Agreement (referred to below). 

  

	 	•	 	 You will receive a special cash incentive of $750,000 (gross). One hundred percent (100%) of this special cash incentive will be payable in full
on the third anniversary of your start date; provided that you are actively employed at the payment date. 

  

	 	•	 	 You will receive a one-time sign-on bonus of $250,000 (gross). Fifty percent (50%) of this sign-on bonus will be payable within thirty
(30) days following your start date and the remaining fifty percent (50%) will be payable within thirty (30) days after you complete your relocation to the greater Chicago metropolitan area, provided that such relocation is completed
within twelve (12) months of your start date. In the event you voluntarily terminate your employment with SHC or are terminated by SHC for “Cause” (as defined in the Executive Severance Agreement referred to in the paragraph below)
within twenty four (24) months of your start date, you will be required to repay these amounts to the Company. 

  

	 	•	 	 You will be required to sign an Executive Severance Agreement. If your employment with SHC terminates for any of the severance-eligible reasons
provided for in the Executive Severance Agreement, you will receive one (1) year of salary continuation, equal to your base salary at the time of termination, subject to mitigation. Under the Executive Severance Agreement, you agree, among
other things, not to disclose confidential information and not to solicit employees for one (1) year following termination of employment. You also agree not to aid, assist or render services for any ‘Sears Competitor’ (as defined in
this agreement) for one (1) year following termination of employment. As noted above, the restricted stock grant is conditioned upon you signing this agreement. 

 

	 	•	 	 In lieu of relocation benefits as provided in the Company’s standard relocation policy, you will receive a one-time relocation bonus of $150,000
(net). This relocation bonus represents all benefits and compensation that will be provided to you in connection with your relocation, including commuting and temporary living costs incurred until your relocation is completed. This
relocation bonus will be paid to you within thirty (30) days of your start date. To receive relocation assistance, you must sign a Relocation Repayment Agreement, which will be included in the Relocation Benefits package that will be sent
to you from the Company’s relocation vendor. A sample copy of the Relocation Repayment Agreement is enclosed for your information. 

  

	 	•	 	 You are eligible to receive four (4) 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 (6) paid National Holidays each year. You will be eligible for up to four (4) Personal Days per year, after completing six (6) months of service. 

 Mr. Haworth 
 November 14, 2009 
  Page 
 3
 
  

	 	•	 	 You will be eligible to 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, conditions and availability of those programs. 

  

	 	•	 	 This offer is contingent upon satisfactory completion of a background reference check, employment authorization verification and pre-employment drug
test. 

 Mr. Haworth 
 November 14, 2009 
  Page 
 4
 
  

 Jim, we are looking forward to you joining Sears Holdings. We are excited about the important
contributions you will make to the company. I look forward to your acceptance of our offer. If you need additional information or clarification, please call. 
 This offer will expire if not accepted within one week from the date of this letter. To accept, sign below and return this letter along with your signed Executive Severance Agreement. 

 

					
	Sincerely,	  	 	  	 
			
	/s/ J. David Works	  		  	
	 J. David Works
  
	  		  	
	Enclosures	  		  	
	  
 Accepted:
	  		  	
			
	 /s/ James Haworth
	  		  	11/12/2009
	James Haworth	  		  	DateForm of Restricted Stock Agreement

 Exhibit 10.8 
 AVEO Pharmaceuticals, Inc. 
 Restricted Stock Agreement

  

			
	 Name of Recipient:
	 	  

		
	 Number of shares of restricted common stock awarded:
	 	  

		
	 Grant Date:
	 	  

		
	 Vesting Commencement Date:
	 	  

AVEO Pharmaceuticals, Inc. (the “Company”) has selected you to receive the restricted stock award described
above, which is subject to the provisions of the Company’s 2010 Stock Incentive Plan (the “Plan”) and the terms and conditions contained in this Restricted Stock Agreement. Please confirm your acceptance of this restricted stock award
and of the terms and conditions of this Agreement by signing a copy of this Agreement where indicated below. 
  

			
	 AVEO Pharmaceuticals, Inc.

		
	 By:
	 	 
		 	 Name: ____________________
 Title: ______________________

 Accepted and Agreed:

 ________________________________ 
 Name: __________________________ 

 AVEO PHARMACEUTICALS, INC. 

Restricted Stock Agreement 
 The terms and conditions of the award of shares of restricted common stock of the Company (the “Restricted Shares”) made to the Recipient, as set forth on the cover page of this Agreement, are
as follows: 
  

	 	 1.
	 Issuance of Restricted Shares. 

 (a) The Restricted Shares are issued to the Recipient, effective as of the Grant Date (as set forth on the cover page of this Agreement), in consideration of employment services rendered and to be
rendered by the Recipient to the Company. 
 (b) The Restricted Shares will initially be issued by the Company
in book entry form only, in the name of the Recipient. Following the vesting of any Restricted Shares pursuant to Section 2 below, the Company shall, if requested by the Recipient, issue and deliver to the Recipient a certificate representing
the vested Restricted Shares. The Recipient agrees that the Restricted Shares shall be subject to the forfeiture provisions set forth in Section 3 of this Agreement and the restrictions on transfer set forth in Section 4 of this Agreement.

  

	 	 2.
	 Vesting 

 The Restricted Shares shall vest as to [_____________]. 
  

	 	 3.
	 Forfeiture of Unvested Restricted Shares Upon Certain Events. 

In the event that (1) the Recipient ceases to be employed by the Company for any reason or no reason, with or without
cause, [or (2) [__________], then all of the Restricted Shares that are unvested as of the time of such employment termination [or [__________], as the case may be,] shall be forfeited immediately and automatically to the Company, without the
payment of any consideration to the Recipient, effective as of such date. The Recipient shall have no further rights with respect to any Restricted Shares that are so forfeited. If the Recipient is employed by a subsidiary of the Company, any
references in this Agreement to employment with the Company shall instead be deemed to refer to employment with such subsidiary. 
  

	 	 4.
	 Restrictions on Transfer. 

 The Recipient shall not sell, assign, transfer, pledge, hypothecate or otherwise dispose of, by operation of law or otherwise (collectively “transfer”) any Restricted Shares, or any interest
therein, until such Restricted Shares have vested, except that the Recipient may transfer such Restricted Shares: (a) to or for the benefit of any spouse, children, parents, uncles, aunts, siblings, grandchildren and any other relatives
approved by the Compensation Committee (collectively, “Approved Relatives”) or to a trust established solely for the benefit of the Recipient and/or Approved Relatives, provided that such Restricted Shares shall remain subject to
this Agreement (including without limitation the forfeiture provisions set forth in Section 3 and the restrictions on transfer set forth in this Section 4) and such permitted transferee shall, as a condition to such transfer, deliver to
the Company a written instrument confirming that such transferee shall be bound by all of the terms and conditions of this Agreement; or (b) as part of the sale of all or substantially all of the shares of capital stock of the Company
(including pursuant to a merger or consolidation). The Company shall not be required (i) to transfer on its books any of the Restricted Shares which have been transferred in violation of any of the provisions of this Agreement or (ii) to
treat as owner of such Restricted Shares or to pay dividends to any transferee to whom such Restricted Shares have been transferred in violation of any of the provisions of this Agreement. 

	 	 5.
	 Restrictive Legends. 

 The book entry account reflecting the issuance of the Restricted Shares in the name of the Recipient shall bear a legend or other notation upon substantially the following terms: 

“These shares of stock are subject to forfeiture provisions and restrictions on transfer set forth in a certain
Restricted Stock Agreement between the corporation and the registered owner of these shares (or his or her predecessor in interest), and such Agreement is available for inspection without charge at the office of the Secretary of the
corporation.” 
  

	 	 6.
	 Rights as a Shareholder. 

 Except as otherwise provided in this Agreement, for so long as the Recipient is the registered owner of the Restricted Shares, the Recipient shall have all rights as a shareholder with respect to the
Restricted Shares, whether vested or unvested, including, without limitation, any rights to receive dividends and distributions with respect to the Restricted Shares and to vote the Restricted Shares and act in respect of the Restricted Shares at
any meeting of shareholders. 
  

	 	 7.
	 Provisions of the Plan. 

 This Agreement is subject to the provisions of the Plan, a copy of which is furnished to the Recipient with this Agreement. As provided in the Plan, upon the occurrence of a Reorganization Event (as
defined in the Plan), the rights of the Company hereunder (including the right to receive forfeited Restricted Shares) shall inure to the benefit of the Company’s successor and, unless the Board determines otherwise, shall apply to the cash,
securities or other property which the Restricted Shares were converted into or exchanged for pursuant to such Reorganization Event in the same manner and to the same extent as they applied to the Restricted Shares under this Agreement. 

 

	 	 8.
	 Tax Matters. 

 (a) Acknowledgments; Section 83(b) Election. The Recipient acknowledges that he or she is responsible for obtaining the advice of the Recipient’s own tax advisors with respect to the
acquisition of the Restricted Shares and the Recipient is relying solely on such advisors and not on any statements or representations of the Company or any of its agents with respect to the tax consequences relating to the Restricted Shares. The
Recipient understands that the Recipient (and not the Company) shall be responsible for the Recipient’s tax liability that may arise in connection with the acquisition, vesting and/or disposition of the Restricted Shares. The Recipient
acknowledges that he or she has been informed of the availability of making an election under Section 83(b) of the Internal Revenue Code, as amended, (the “Code”) with respect to the issuance of the Restricted Shares. 

(b) Withholding. The Recipient acknowledges and agrees that the Company has the right to deduct from payments of
any kind otherwise due to the Recipient any federal, state, local or other taxes of any kind required by law to be withheld with respect to the vesting of the Restricted Shares. If the Recipient does make an election under Section 83(b) of the
Code, the Company shall deliver written notice of the amount of withholding taxes due and the Recipient shall satisfy such tax withholding obligations by making a payment by check to the Company in the amount of the Company’s withholding
obligation at the time of the Recipient’s Section 83(b) election. If the Recipient does not make an election under Section 83(b) of the Code, on each date on which Restricted Shares vest, the Company shall deliver written notice to the
Recipient of the amount of withholding taxes due, if any, with respect to the vesting of the Restricted Shares that vest on such date; provided, however, that the total tax withholding cannot exceed the Company’s minimum statutory withholding
obligations (based on minimum statutory withholding rates for federal and state tax purposes, including payroll taxes, that are applicable to such supplemental taxable income). The Recipient shall satisfy such tax withholding obligations by making a
cash payment to the Company in the amount of the Company’s withholding obligation in connection with the vesting of such Restricted Shares. 

	 	 9.
	 Miscellaneous. 

 (a) Authority of Compensation Committee. In making any decisions or taking any actions with respect to the matters covered by this Agreement, the Compensation Committee shall have all of the
authority and discretion, and shall be subject to all of the protections, provided for in the Plan. All decisions and actions by the Compensation Committee with respect to this Agreement shall be made in the Compensation Committee’s discretion
and shall be final and binding on the Recipient. 
 (b) No Right to Continued Employment. The Recipient
acknowledges and agrees that, notwithstanding the fact that the vesting of the Restricted Shares is contingent upon his or her continued employment by the Company, this Agreement does not constitute an express or implied promise of continued
employment or confer upon the Recipient any rights with respect to continued employment by the Company. 
 (c)
Governing Law. This Agreement shall be construed, interpreted and enforced in accordance with the internal laws of the State of Delaware without regard to any applicable conflicts of laws provisions. 

(d) Recipient’s Acknowledgments. The Recipient acknowledges that he or she: (i) has read this Agreement;
(ii) has been represented in the preparation, negotiation, and execution of this Agreement by legal counsel of the Recipient’s own choice or has voluntarily declined to seek such counsel; (iii) understands the terms and conditions of
this Agreement and the Plan; and (iv) is fully aware of the legal and binding effect of this Agreement.

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