Document:

exv10w29w1

 

			
	Amendment to Amended & Restated Outside Director Compensation Policy

(Adopted by Board of Directors November 2007)
	 	Exhibit 10.29.1

CSK AUTO CORPORATION

OUTSIDE DIRECTOR COMPENSATION POLICY

     A. Annual Stipend — Outside Directors.

     (i) Amount and Form of Payment. Non-employee (“outside”) directors of CSK Auto
Corporation (the “Company”) shall be paid an annual cash stipend in the amount of fifty
thousand dollars ($50,000) (the “Fixed Fee”). Unless the director is first appointed to the
Board via election at the Company’s annual meeting of stockholders, the Fixed Fee for the first
year of service until the first annual meeting of stockholders following the director’s appointment
to the Board shall be adjusted pro rata for the period from the date of the outside director’s
appointment to the Board to the next annual meeting of the Company’s stockholders.1

     (ii) Timing of Payment. The Fixed Fee shall be paid as follows:

     1. If the period between the outside director’s election to the Board and the next annual
meeting of stockholders is six months or less, payment shall be made in a single installment on the
date of the next annual meeting of stockholders.

     2. If the period between the outside director’s election (or re-election) to the Board and the
next annual meeting of stockholders is longer than six months, payment shall be made in two equal
installments on the following dates: (1) on the six month anniversary of the outside director’s
election, and (2) on the earlier of (a) the one year anniversary of the outside director’s election
(or re-election) or (b) the date of the first annual meeting of stockholders following the
director’s election to the Board.

     3. Notwithstanding the foregoing, in the case of death or disability of the outside director
or a Change in Control (as defined in the Company’s 2004 Stock and Incentive Plan), all unpaid
portions of the Fixed Fee shall be paid immediately. Unpaid portions of the Fixed Fee shall not be
paid if a director voluntarily resigns from office prior to the scheduled payment date, unless such
resignation is in connection with a Change in Control.

     B. Annual Stipend — Non-Executive Chairman of the Board.

     If the Chairman of the Board is an outside director, he or she shall be paid an annual cash
stipend in addition to the Fixed Fee of $36,000.00/annum, payable in the same manner as the Fixed
Fee as described above.

     C. Equity Grants.

 

			
	1	 	For the purposes of this Policy, the date of the next
annual meeting of stockholders means, in cases where such date has not yet been
set, the anticipated date of the next annual meeting of stockholders.

-1-

 

     Each outside director will be granted an option to purchase 10,000 shares of the Company’s
common stock at the close of business on the date of each annual meeting of stockholders. The
exercise price shall be equal to the fair market value on the grant date. Such options shall vest
on the one year anniversary of the grant date. If a director is first appointed to the Board
between annual meetings, the options to be awarded for the first partial year of service (until the
first annual meeting of stockholders following the director’s appointment to the Board) shall be
adjusted pro rata (calculated on the basis of 10,000 shares per annum) for the period from the date
of the outside director’s appointment to the Board to the next annual meeting of the Company’s
stockholders.

     Notwithstanding the foregoing, in the case of death or disability of the outside director or
a Change in Control (as defined in the Company’s 2004 Stock and Incentive Plan), all unvested
options shall vest immediately. Unvested options shall not vest if a director voluntarily resigns
from office prior to the scheduled vesting date (unless such resignation is in connection with a
Change of Control).

     D. Meeting Fees and Expenses.

     Outside directors shall receive a fee of $1,500.00 plus reasonable expenses for each regular
Board meeting attended in person or telephonically, and each committee meeting or special Board
meeting attended in person that is not held in conjunction with a regular Board meeting.

     For each committee meeting or special Board meeting attended telephonically, each outside
director shall be paid a fee of $500.00.

     Such meeting fees shall be paid and expenses shall be reimbursed at the end of each fiscal
quarter.

     E. Committee Chair Fees.

     The Chair of the Audit Committee of the Board of Directors shall be paid an annual fee of
$15,000, and the Chair of each of the Compensation Committee and Nominating & Governance Committee
of the Board shall be paid an annual fee of $7,500 (each, a “Chair Fee”). Each Chair Fee
shall be paid in the same manner as cash portions of the Fixed Fee as set forth above in A.(ii).exv10w29w2

 

			
	Second Amendment to Amended & Restated Outside Director Compensation Policy

(Adopted by Board of Directors March 2008)
	 	Exhibit 10.29.2

CSK AUTO CORPORATION

OUTSIDE DIRECTOR COMPENSATION POLICY

     A. Annual Stipend — Outside Directors.

     (i) Amount and Form of Payment. Non-employee (“outside”) directors of CSK Auto
Corporation (the “Company”) shall be paid an annual cash stipend in the amount of fifty
thousand dollars ($50,000) (the “Fixed Fee”). Unless the director is first appointed to the
Board via election at the Company’s annual meeting of stockholders, the Fixed Fee for the first
year of service until the first annual meeting of stockholders following the director’s appointment
to the Board shall be adjusted pro rata for the period from the date of the outside director’s
appointment to the Board to the next annual meeting of the Company’s stockholders.1

     (ii) Timing of Payment. The Fixed Fee shall be paid as follows:

     1. If the period between the outside director’s election to the Board and the next annual
meeting of stockholders is six months or less, payment shall be made in a single installment on the
date of the next annual meeting of stockholders.

     2. If the period between the outside director’s election (or re-election) to the Board and the
next annual meeting of stockholders is longer than six months, payment shall be made in two equal
installments on the following dates: (1) on the six month anniversary of the outside director’s
election, and (2) on the earlier of (a) the one year anniversary of the outside director’s election
(or re-election) or (b) the date of the first annual meeting of stockholders following the
director’s election to the Board.

     3. Notwithstanding the foregoing, in the case of death or disability of the outside director
or a Change in Control (as defined in the Company’s 2004 Stock and Incentive Plan), all unpaid
portions of the Fixed Fee shall be paid immediately. Unpaid portions of the Fixed Fee shall not be
paid if a director voluntarily resigns from office prior to the scheduled payment date, unless such
resignation is in connection with a Change in Control.

     B. Annual Stipend — Non-Executive Chairman of the Board.

     If the Chairman of the Board is an outside director, he or she shall be paid an annual cash
stipend in addition to the Fixed Fee of $36,000.00/annum, payable in the same manner as the Fixed
Fee as described above.

     C. Equity Grants.

 

			
	1	 	For the purposes of this Policy, the date of the next
annual meeting of stockholders means, in cases where such date has not yet been
set, the anticipated date of the next annual meeting of stockholders.

-1-

 

     Each outside director will be granted an option to purchase 10,000 shares of the Company’s
common stock at the close of business on the date of each annual meeting of stockholders. The
exercise price shall be equal to the fair market value on the grant date. Such options shall vest
on the one year anniversary of the grant date. If a director is first appointed to the Board
between annual meetings, the options to be awarded for the first partial year of service (until the
first annual meeting of stockholders following the director’s appointment to the Board) shall be
adjusted pro rata (calculated on the basis of 10,000 shares per annum) for the period from the date
of the outside director’s appointment to the Board to the next annual meeting of the Company’s
stockholders.

     Notwithstanding the foregoing, in the case of death or disability of the outside director or
a Change in Control (as defined in the Company’s 2004 Stock and Incentive Plan), all unvested
options shall vest immediately. Unvested options shall not vest if a director voluntarily resigns
from office prior to the scheduled vesting date (unless such resignation is in connection with a
Change of Control).

     D. Meeting Fees and Expenses.

     Outside directors shall receive a fee of $1,500.00 plus reasonable expenses for each regular
Board meeting attended in person or telephonically, and each committee meeting or special Board
meeting attended in person that is not held in conjunction with a regular Board meeting.

     For each committee meeting or special Board meeting attended telephonically, each outside
director shall be paid a fee of $1,250.00.

     Such meeting fees shall be paid and expenses shall be reimbursed at the end of each fiscal
quarter.

     E. Committee Chair Fees.

     The Chair of the Audit Committee of the Board of Directors shall be paid an annual fee of
$15,000, and the Chair of each of the Compensation Committee and Nominating & Governance Committee
of the Board shall be paid an annual fee of $7,500 (each, a “Chair Fee”). Each Chair Fee
shall be paid in the same manner as cash portions of the Fixed Fee as set forth above in A.(ii).exv10w38w1

 

Exhibit 10.38.1

FIRST AMENDMENT TO THE EMPLOYMENT AGREEMENT

     This First Amendment (“Amendment”) to the Employment Agreement (the “Employment
Agreement”) dated as of March 31, 2008, by and between CSK Auto, Inc., an Arizona corporation
(the “Company”), a wholly owned subsidiary of CSK Auto Corporation, a Delaware corporation
(“Parent”), and Lawrence N. Mondry (the “Executive”), dated as of June 8, 2007.

     WHEREAS, the Executive and the Company have entered into the Employment Agreement; and

     WHEREAS, the Company and Executive wish to amend the Employment Agreement as provided for
herein;

     WHEREAS, pursuant to Section 15.2 of the Employment Agreement, the parties affected thereby
may amend the Employment Agreement by a written instrument;

     NOW, THEREFORE, BE IT RESOLVED that the Employment Agreement is amended as follows, effective
as of the date hereof:

     1. Section 5.2 is hereby amended in its entirety to read as follows:

     “As soon as practicable following the first regular meeting of the Board after the
Company’s filing with the SEC of its audited financial statements for the Company’s 2007
fiscal year, or concurrent with the granting of awards to eligible grantees pursuant to
Parent’s equity grant policy (as amended from time to time by the Board), Parent will grant
the Executive an additional stock option to acquire such number of shares of Parent’s common
stock as is determined pursuant to the next sentence, with an exercise price equal to the
fair market value of Parent’s common stock on the date of grant (the “2008 Option”),
or, in the sole discretion of the Board, an equivalent award in the form of restricted stock
or restricted stock units. The number of shares subject to the 2008 Option shall be equal to
the quotient obtained by dividing 130% of the Executive’s then Base Salary by the deemed per
share value of the shares of Parent’s common stock issuable under the 2008 Option on the
grant date determined using the same methodology as used by Parent for financial reporting
purposes under SFAS No. 123(R). The 2008 Option (or equivalent restricted stock or
restricted stock unit award) shall be subject to the terms and conditions set forth in the
Company’s stock incentive plans and standard form of award agreement for executive-level
employees in use at the time of such grant, which terms and conditions may not be the same
as the terms and conditions of the Initial Option.”

     2. Section 8.1 is hereby amended in its entirety to read as follows:

     “During the period between the Commencement Date and June 30, 2008 (the “Relocation
Period”), the Company agrees to reimburse the Executive for reasonable travel and temporary
living expenses (including without limitation housing and other transportation expenses)
incurred by the Executive in connection with his temporary living arrangements in Phoenix,
Arizona and his travel between his home in Dallas,
Texas and the Company’s corporate headquarters in Phoenix, Arizona, subject to a

 

 

reasonable limit on such expenses to be mutually agreed upon by the Board and the Executive.
To the extent any payments under this Section 8.1 are taxable to the Executive, the Company
shall pay to the Executive an additional cash payment in an amount such that the Executive
will be in the same position as he would have been had no taxes been imposed upon or
incurred as a result of any payments under this Section 8.1. Notwithstanding anything
herein to the contrary, if on or prior to June 30, 2008 the Company enters into an agreement
that, if consummated, would result in a Change of Control (as defined below), then the
Relocation Period will be automatically extended until the earlier of (A) the date that is
eight months after the consummation of the Change of Control transaction and (B) the date
that is thirty days following the date of the Executive’s termination of employment for any
reason. For the avoidance of doubt, to the extent the Relocation Period is extended
pursuant to the preceding sentence, from and after the consummation of the Change of Control
transaction referred to therein, the Company (and any successor thereto) shall continue to
reimburse the Executive for travel and temporary living expenses pursuant to this Section
8.1 on terms no less favorable than those agreed to by the Board and the Executive prior to
the consummation of the Change of Control, which terms shall include, but shall not be
limited to, the terms set forth in Appendix A hereto and, to the extent not
inconsistent with the Section 8.1 or Appendix A, the CSK Auto, Inc. Relocation
Policy and the Company’s travel policy, each as in effect and applicable to the Executive
prior to the Change of Control.”

     3. Section 8.2 is hereby amended in its entirety to read as follows:

     “During the Relocation Period (including any extension thereof pursuant to Section
8.1), the Company shall provide the Executive with an automobile allowance of $2,000 per
month. Any automobile allowance after the end of the Relocation Period would be subject to
review and approval by the Board.”

     4. Section 10.3(b)(v) is hereby amended in its entirety to read as follows:

     “the Company breaches Section 8 (or Appendix A) of this Agreement and/or
requires (A) the Executive to relocate to Phoenix, Arizona prior to the expiration of the
Relocation Period (including any extension thereof pursuant to Section 8.1); or (B) that the
Executive’s employment be based at a location outside a 50 mile radius from the Company’s
current corporate headquarters in Phoenix, Arizona;”

     5. Section 10.3(c) is hereby amended in its entirety to read as follows:

     “If the Executive’s employment is terminated by the Company without Cause (other than
by reason of death or Disability) or if the Executive resigns for Good Reason, in each case,
other than during the period commencing upon the consummation of a Change of Control and
ending on the first anniversary thereof, the Executive shall be entitled to receive: (i) the
Accrued Rights within 7 business days following the date of such termination; (ii) subject
to (A) the Executive’s continued compliance with the provisions of Section 12 hereof and (B)
the Executive’s execution and non-revocation of a mutual release with the Company in the
form of Exhibit A attached hereto: a cash payment equal to two times the Executive’s
Base Salary as in effect upon the date the

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Executive’s employment was terminated (without
giving effect to any reduction in Base Salary that constituted Good Reason for such
termination), payable in equal monthly
installments over a two-year period commencing with the month following the date of
such termination; and (iii) for a period of one year subsequent to his termination, the
Company shall provide the Executive (and his eligible dependents, to the extent applicable
and comparable to coverage afforded prior to termination of employment) with continued
coverage under the Company’s medical, dental, vision and Exec-U-Care benefit plans, in each
case, in accordance with the terms thereof and with the same level of coverage (and related
cost to the Executive) as if the Executive had remained employed during such period; at the
time when the foregoing health coverage ends, at the Executive’s election and at the
Executive’s own expense, the Executive (and his eligible dependents) shall be entitled to
COBRA coverage for the full COBRA period (18 months); provided that, in no event shall the
Executive be entitled to participation in any other employee benefit plans or arrangements
or perquisites provided by the Company from and after the date the Executive’s employment is
terminated, except as set forth herein. In addition, the Executive shall be permitted to
retain for personal use following such termination of employment the cell phone and/or PDA
and laptop computer provided to the Executive by the Company.”

     6. Section 10.4(b) is hereby amended in its entirety to read as follows:

     “If the Executive’s employment is terminated by the Company without Cause (other than
by reason of death or Disability) or if the Executive resigns for any reason (including Good
Reason), in each case, during the period commencing upon the consummation of a Change of
Control and ending on the first anniversary thereof, the Executive shall be entitled to
receive: (i) the Accrued Rights within 7 business days following the date of such
termination; (ii) subject to (A) the Executive’s continued compliance with the provisions of
Section 12 hereof and (B) the Executive’s execution and non-revocation of a mutual release
with the Company in the form of Exhibit A attached hereto, a lump sum cash payment
equal to two times the sum of the Executive’s Base Salary and Target Bonus, in each case as
in effect upon the date the Executive’s employment was terminated (without giving effect to
any reduction in Base Salary or Target Bonus that constituted Good Reason for such
termination), payable upon the Effective Date as defined in Section 7 of such release; and
(iii) for a period of one year subsequent to his termination, the Company shall provide the
Executive (and his eligible dependents, to the extent applicable and comparable to coverage
afforded prior to termination of employment) with continued coverage under the Company’s
medical, dental, vision and Exec-U-Care benefit plans, in each case, in accordance with the
terms thereof and with the same level of coverage (and related cost to the Executive) as if
the Executive had remained employed during such period; at the time when the foregoing
health coverage ends, at the Executive’s election and at the Executive’s own expense, the
Executive (and his eligible dependents) shall be entitled to COBRA coverage for the full
COBRA period (18 months); provided that, in no event shall the Executive be entitled to
participation in any other employee benefit plans or arrangements or perquisites provided by
the Company from and after the date the Executive’s employment is terminated, except as set
forth herein. In addition, the Executive shall be permitted to retain for personal use
following such termination of employment the cell phone and/or PDA and

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laptop computer
provided to the Executive by the Company. Notwithstanding any provision of the Company’s
relocation policy to the contrary, in the event of a
termination of employment as described in this Section 10.4(b), the Executive shall not
be required to reimburse the Company for any relocation expenses properly incurred or
expended (whether pursuant to the Appendix A or otherwise), regardless of whether the
Executive’s termination of employment occurred within one year of the date Executive
commenced employment with the Company.”

     7. Section 10.4 is hereby amended to add the following new subsection (c) after the end of the
existing Section 10.4(b):

     “(c) In addition to any other payments or benefits hereunder, if a Change of Control
occurs on or prior to the end of the Company’s 2008 fiscal year and (i) the Executive
remains continuously employed by the Company or the continuing or surviving corporation
resulting from the Change of Control on a full-time basis through the date that is six
months following the consummation of the Change of Control or (ii) the Executive’s
employment with the Company is terminated (a) by the Company without Cause or (b) by the
Executive for Good Reason, in each case before the date that is six months following the
consummation of the Change of Control, then:

     (i) if the Executive’s employment terminates prior to the end of the Company’s
2008 fiscal year, the Company shall pay to the Executive, within 10 days following
the date of such termination of employment, a gross lump sum cash amount equal to
the Executive’s Target Bonus for the 2008 fiscal year multiplied by a fraction, (a)
the numerator of which is the greater of (1) the number of full or partial months
(rounded up to the whole month) between February 4, 2008 and the date that is six
months following the consummation of the Change of Control or (2) the number of full
or partial months (rounded up to the whole month) the Executive was employed by the
Company and/or the continuing or surviving corporation during the 2008 fiscal year,
and (b) the denominator of which is 12; provided, that the amount payable pursuant
to this Section 10.4(c)(i) shall in no event exceed 100% of the Executive’s Target
Bonus for the 2008 fiscal year; or

     (ii) if the Executive remains employed by the Company or the continuing or
surviving corporation resulting from the Change of Control through the end of the
Company’s 2008 fiscal year, the Company shall pay to the Executive, within 10 days
following the end of the Company’s 2008 fiscal year, a gross lump sum cash amount
equal to the Executive’s Target Bonus for the 2008 fiscal year.”

     8. Section 12.2(a) is hereby amended in its entirety to read as follows:

     “During the Restricted Period (as defined below), the Executive shall not become
engaged in a managerial or executive capacity for, or consultant to, Auto Zone, Inc., The
Pep Boys — Manny, Moe & Jack, O’Reilly Automotive, Inc., Advance Stores Company,
Incorporated, Discount Auto Parts, Inc., any other national auto parts and accessories

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retailer, any multi-state regional auto parts and accessories retailer that competes with
the Company, or any successor to any of them (each a “Competitor”). Notwithstanding
the foregoing, in the event of a Change of Control that results in the Company (or its
assets or business) being acquired or merging with a Competitor (or subsidiary thereof), the
preceding sentence shall have no effect with respect to such Competitor.”

     9. Appendix attached to this Amendment is hereby added to the Employment Agreement as
Appendix A thereto.

     10. Except as provided for above, the provisions of the Employment Agreement shall remain in
full force and effect.

(signature page follows)

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     IN WITNESS WHEREOF, the parties have executed this Amendment to be effective as of the date
first written above.

	 	 	 	 	 
	 	CSK AUTO, INC.

 	 
	 	By:  	/s/ JAMES D. CONSTANTINE
 	 
	 	 	Name:  	James D. Constantine 	 
	 	 	Title:  	Executive Vice President of

Finance and Chief Financial Officer 	 
	 
	 	CSK AUTO CORPORATION

 	 
	 	By:  	/s/ JAMES D. CONSTANTINE
 	 
	 	 	Name:  	James D. Constantine 	 
	 	 	Title:  	Executive Vice President of

Finance and Chief Financial Officer 	 
	 
	 	EXECUTIVE

 	 
	 	 	/s/ LAWRENCE N. MONDRY
 	 
	 	 	Lawrence N. Mondry 	 
	 	 	 

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Appendix A — Approved Relocation Expenses

Effective as of March 31, 2008, the following travel and temporary living expense reimbursements
have been approved by the Compensation Committee of the Board of Directors of the Company and CSK
Auto Corporation:

	•	 	Temporary housing consistent with the Executive’s existing accommodations in and around the
Phoenix, Arizona metropolitan area or comparable housing in the Executive’s sole discretion.

	•	 	Weekly travel (such reimbursement consistent with past practices) between Phoenix, Arizona
and the Executive’s residence in Dallas, Texas.

	•	 	Reimbursement of the cost to transport the Executive and the Executive’s family and any and
all of the Executive’s personal goods back to Dallas, Texas following termination of your
employment for any reason other than Cause.

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