Document:

Exhibit

EXHIBIT 10.8

[LETTERHEAD OF SEARS HOLDINGS CORPORATION]

September 28, 2011 

Mr. Robert A. Riecker

Dear Rob, 

We are pleased to extend to you our offer to serve as Vice President, Audit, reporting to Dane Drobny, Senior Vice President, General Counsel and Corporate Secretary.  Your new position and compensation package will be effective October 1, 2011, subject to the contingency below. 
 
The key elements of your compensation package are as follows:

		
	•
	Annual base salary at a rate of $325,000.

		
	•
	Your annual incentive opportunity will remain at 50% of your base salary under Sears Holdings Annual Incentive Plan (“AIP”).  Any incentive payable under the 2011 AIP will be prorated based on the amount of time spent at each salary level through January 28, 2012, the last day of Sears Holdings 2011 fiscal year.  Any annual incentive payable with respect to a fiscal year will be paid by April 15th of the following fiscal year, provided that you are actively employed at the payment date. 

The table below summarizes these changes in your compensation:

	
					
	 
	Title
	Base Salary
	Annual Target Incentive
	Target
Total Cash

	Current
	VP, Assistant Controller – SHC
	$280,000
	50%
	$420,000

	New
	VP, Audit
	$325,000
	50%
	$487,500

	Increase
	 
	16.1%
	 
	16.1%

		
	•
	Your 2010 Long-Term Incentive Plan (“2010 LTIP”) target incentive of 50% of your annual base salary in effect on April 27, 2010 will remain unchanged through the end of the performance period on February 2, 2013.  Any reward under the 2010 LTIP will continue to be determined based on the achievement of the three (3) year financial goals as follows:   

		
	•
	For the fiscal years 2010 – 2012 - 100% measured against LTIP EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization). 

		
	•
	You will be eligible to participate in the Sears Holdings Corporation 2011 Long-Term Incentive Program (“2011 LTIP”) with a target incentive of 50% of your base salary in effect as of April 27, 2011.  Further details regarding your 2011 LTIP will be provided to you in the near future.

		
	•
	You will be required to sign a new Executive Severance Agreement (“Agreement”).  If your employment is terminated by SHC (other than for Cause, death or Disability) or by you for Good Reason (as such capitalized terms are defined in the Agreement), you will receive six (6) months of 

Mr. Robert A. Riecker
September 28, 2011
Page 2

salary continuation, equal to your base salary at the time of termination, subject to mitigation.  Under the Agreement, you agree, among other things, not to disclose confidential information and for twelve (12) months following termination of employment not to solicit employees.  You also agree not to aid, assist or render services for any “Sears Competitor” or “Sears Vendor” (as such terms are defined in the Agreement) for six (6) months following termination of employment.  The non-disclosure, non-solicitation, non-compete and non-affiliation provisions apply regardless of whether you are eligible for severance benefits under this Agreement.  Please note that upon execution, this Agreement will supersede all previous severance agreements between you and SHC.  This new position, the increase in annual base salary and participation in the 2011 LTIP are conditioned upon you signing this Agreement. 
 

Rob, your new opportunity is a direct result of your leadership, performance and the many contributions you make to the Company every day.  We appreciate everything you do to make a difference and bring value to our Company, our associates and our shareholders.   I look forward to working with you in your new position.

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 to your manager.

Sincerely,

/s/ J. David Works    _____________________
J. David Works

Accepted: 

/s/ Robert A. Riecker_____________________            10/03/2011
Robert A. Riecker                    DateExhibit

EXHIBIT 10.9

[LETTERHEAD OF SEARS HOLDINGS CORPORATION]

February 1, 2012  

Mr. Robert A. Riecker
 

Dear Rob, 

We are pleased to extend to you our offer to serve as Vice President, Controller and Chief Accounting Officer, reporting to Bill Phelan, effective January 26, 2012.  There other terms of your compensation package remain the same.

In your new role, you have been designated as a Section 16 Officer of the company.  Dorian Williams, Vice President and Deputy General Counsel will contact you with more information regarding this designation.  

To acknowledge and accept this change, please sign below and return this letter to your Human Resource Manager.

Sincerely, 

/s/ Dean Carter           __________________
Dean Carter

	
				
	Acknowledged and Accepted:
	 
	 
	 

	 
	 
	 
	 

	/s/ Robert A. Riecker
	 
	02/04/2012
	 

	Robert A. Riecker
	 
	DateExhibit

EXHIBIT 10.10

SPECIAL RETENTION AWARD AGREEMENT
By this Special Retention Award Agreement dated April 24, 2012 (“Agreement”) between  
Robert A. Riecker (“Executive”) and Sears Holdings Corporation and its affiliates and subsidiaries (“Sears”) (collectively referred to as the “Parties”), the Parties intending to be legally bound, and for good and valuable consideration, agree as follows:  
PART A.  RETENTION

1.    Retention Awards.  
(a)    Executive agrees not to voluntarily terminate his employment with Sears on or before the date that is twelve (12) months from Executive’s execution of this Agreement (“Execution Date”).  The Execution Date through the date that is twelve (12) months from the Execution Date shall be referred to herein as the “1st Retention Period”.  In consideration for such Agreement, the Parties agree that:

(i)    Executive will continue to devote his full productive time and attention to the performance of Executive’s job duties in his position(s) at Sears through the 1st Retention Period.
(ii)    Subject to this Section 1 and Section 2 immediately below, if Executive does not terminate employment with Sears prior to the expiration of the 1st Retention Period and meets or exceeds performance expectations, as communicated and discussed with Executive with during the Retention Period, as soon as administratively feasible after the date that is twelve (12) months from Execution Date, Sears shall pay Executive a retention award equal to $100,000 (subject to applicable withholding in accordance with Section 6 of Part B below).  Such “1st Retention Award” shall be a special bonus and shall not be eligible compensation for purpose of any qualified or nonqualified retirement plan maintained by Sears. 
(iii)    The 1st Retention Award is separate from and not in the place of any annual or other incentive to which Executive may otherwise be or become entitled with respect to the 1st Retention Period.
(b)    Executive agrees not to voluntarily terminate his employment with Sears on or before the date that is twenty-four (24) months from the Execution Date.  The date of this Agreement through the date that is twenty-four (24) months from the Execution Date shall be referred to herein as the “2nd Retention”.  In consideration for such Agreement, the Parties agree that:

(i)    Executive will continue to devote his full productive time and attention to the performance of Executive’s job duties in his position(s) at Sears through the 2nd Retention Period.
(ii)    Subject to this Section 1 and Section 2 immediately below, if Executive does not terminate employment with Sears prior to the expiration of the 2nd Retention Period and meets or exceeds performance expectations, as communicated and discussed with Executive with during the Retention Period, as soon as administratively feasible after the date that is twenty-four (24) months from Execution Date, Sears shall pay Executive a retention award equal to $100,000 (subject to applicable withholding in accordance with Section 6 of Part B below).  Such “2nd Retention Award” shall be a special bonus and shall not be eligible compensation for purpose of any qualified or nonqualified retirement plan maintained by Sears. 

(iii)    The 2nd Retention Award is separate from and not in the place of any annual or other incentive to which Executive may otherwise be or become entitled with respect to the 2nd Retention Period.
(c)    The 1st Retention Period and 2nd Retention Period may be referred to collectively herein as the “Retention Period”.  The 1st Retention Award and 2nd Retention Award may be referred to generically herein as the “Retention Award”.

2.        Termination during Retention Period.  
(a)    In the event that Executive’s employment is involuntarily terminated by Sears (other than for misconduct or integrity issues) during the 1st Retention Period:
(i)    Sears agrees to pay Executive a pro rata portion of the 1st Retention Award determined based on a fraction, the numerator of which is the number of days measured from the first day of the 1st Retention Period through Executive’s termination date and the denominator of which is the total number of days in the 1st Retention Period; which pro rata portion will be paid as soon as administratively feasible following such termination; and  
(ii)    Executive will not be entitled to the 2nd Retention Bonus.
 
(b)    In the event that Executive’s employment is involuntarily terminated by Sears (other than for misconduct or integrity issues) after the 1st Retention Period but on or before the expiration of the 2nd Retention Period:
(i)    Sears agrees to pay Executive the full amount of the 1st Retention Award, if not already paid; and
(ii)    Sears agrees to pay Executive a pro rata portion of the 2nd Retention Award determined based on a fraction, the numerator of which is the number of days measured from the first day after the expiration of the 1st Retention Period through Executive’s termination date and the denominator of which is the total number of days from and including the first day after the expiration of the 1st Retention Period through the expiration of the 2nd Retention Period; which pro rata portion will be paid as soon as administratively feasible following such termination.  
(c)    In the event that Executive’s employment is terminated during the Retention Period (i) by Sears for misconduct or integrity issues, or (ii) voluntarily by Executive for any reason (including due to death or disability), Executive shall not be entitled to any portion of the retention award that has not already been earned under this Agreement as of such termination.
PART B.  MISCELLANEOUS
1.    Confidentiality.  Executive recognizes that this Agreement contains confidential information and agrees that the contents of this Agreement or any information made available to Executive in the course of entering into this Agreement shall be considered confidential and shall not be disclosed or communicated in any manner except: (a) as required by law or legal process or (b) to Executive’s spouse, domestic partner, or financial/legal advisors, all of whom shall agree to keep such information confidential; whether this Agreement is ultimately agreed to or not by Executive.  Executive agrees that breach of this confidentiality obligation is cause for discipline, up to and including termination as well as reimbursement to Sears for any amounts paid to Executive pursuant to this Agreement.  
2.     Employment-at-Will.  This Agreement does not constitute a contract of employment, and Executive acknowledges that his employment with Sears is terminable “at-will” by either Party with or without cause and with or without notice.

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4/24/2012

3.    Severability.  The provisions of this Agreement are severable.  If any provision of this Agreement shall be found invalid, illegal, or unenforceable, in whole or in part, then such provision shall be modified or restricted so as to effectuate as nearly as possible in a valid and enforceable way the provisions hereof, or shall be deemed excised from this Agreement, as the case may require, and this Agreement shall be construed and enforced to the maximum extent permitted by law, as if such provision(s) had been originally incorporated herein as so modified or restricted or as if such provision(s) had not been originally incorporated herein, as the case may be. 
4.    Future Enforcement or Remedy.  Any waiver, or failure to seek enforcement or remedy for any breach or suspected breach, of any provision of this Agreement by Sears or Executive in any instance shall not be deemed a waiver of such provision in the future.
5.    Entire Agreement.  This Agreement contains and comprises the entire understanding and agreement between Executive and Sears and fully supersedes any and all other agreements or understandings between Executive and Sears with respect to the subject matter contained herein.  Notwithstanding the foregoing, and for avoidance of doubt, this Agreement shall not void or supersede the Executive Severance Agreement between the parties (fully executed October 4, 2011).   Hereinafter, this Agreement may not be modified except by a written agreement between the Parties.
6.    Tax Withholding.  All amounts payable to Executive under this Agreement shall be subject to any applicable federal, state or local income and employment tax withholding requirements.
7.    Assignment.  Sears may assign its rights under this Agreement to any successor in interest, whether by merger, consolidation, sale of assets, or otherwise.  This Agreement shall be binding whether it is between Sears and Executive or between any successor or assignee of Sears or affiliate thereof and Executive.
8.    Governing Law.  This Agreement will be governed under the internal laws of the state of Illinois without regard to principles of conflicts of laws.  Executive agrees that the state and federal courts located in the state of Illinois shall have exclusive jurisdiction in any action, lawsuit or proceeding based on or arising out of this Agreement, and Executive hereby:  (a) submits to the personal jurisdiction of such courts; (b) consents to the service of process in connection with any action, suit, or proceeding against Executive; and (c) waives any other requirement (whether imposed by statute, rule of court, or otherwise) with respect to personal jurisdiction, venue or service of process.
9.    Counterparts.  This Agreement may be executed in one or more counterparts, which together shall constitute a valid and binding agreement.
EXECUTIVE EXPRESSLY ACKNOWLEDGES THAT EXECUTIVE HAS BEEN ADVISED TO SEEK LEGAL COUNSEL, HAS HAD THE OPPORTUNITY TO CONSULT WITH LEGAL COUNSEL REGARDING THE ADVISABILITY OF ENTERING INTO THIS AGREEMENT, HAS CAREFULLY READ THIS AGREEMENT, FULLY UNDERSTANDS ITS FINAL AND BINDING EFFECT, AND IS EXECUTING THIS AGREEMENT VOLUNTARILY.
IN WITNESS WHEREOF, Executive and Sears, by its duly authorized representative, have executed this Agreement on the dates stated below, effective as of the date first set forth above.
	
				
	EXECUTIVE
	 
	SEARS HOLDINGS CORPORATION
	 

	 
	 
	 
	 

	/s/ Robert A. Riecker
	 
	BY: /s/ Dean Carter
	 

	Robert A. Riecker
	 
	Dean Carter
	 

	 
	 
	 
	 

	4/24/2012
	 
	5/11/2012
	 

	Date
	 
	Date
	 

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4/24/2012

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