Document:

Letter from Registrant to W. Bruce Johnson relating to employment

 EXHIBIT 10.33 

 

			
	SEARS HOLDINGS	  	 Louis J. D’Ambrosio

Chief Executive Officer and President
  

Sears Holdings Corporation
 3333 Beverly
Road
 Hoffman Estates, IL 60179

 March 10, 2011 
 Mr. W. Bruce Johnson 

Dear Bruce: 
 The purpose of
this letter is to confirm our offer to make a change to your leadership role and compensation package. Although this letter serves as confirmation of these changes, the offer is subject to the approval of the Compensation Committee of the Sears
Holdings Corporation Board of Directors (“Compensation Committee”). 
 The changes to your compensation package are as
follows: 
  

	 	•	 	 Your title, effective February 24, 2011, is Executive Vice President—Off-Mall Businesses and Supply Chain. For the avoidance of doubt, and as
acknowledged in your offer letter of January 28, 2008, you agree that your resumption of this EVP role does not constitute Good Reason under the terms of your February 2006 Executive Severance/Non-Compete Agreement (“ESA”).

  

	 	•	 	 With respect to the 40,000 shares of restricted stock you were granted on April 6, 2010, which grant is scheduled to vest on a graduated basis,
with 10,000 shares vesting on each of the first four anniversaries of the grant date, if your employment is involuntarily terminated (other than for Cause, death or Disability, as such capitalized terms are defined in the ESA), as of such
termination date you will be deemed to have vested in any portion of your April 6, 2010 restricted stock grant that you were scheduled to vest in during the fifteen (15) months immediately following such termination date.

 These changes will be reflected in a restatement of the Restricted Stock Award Agreement you received with
respect to the April 6, 2010 restricted stock grant. 
  

	 	•	 	 The remaining elements of your compensation and benefits package, as currently in effect, will remain unchanged. 

To accept this offer and the terms provided herein, please sign below and return this letter to me. 

Sincerely, 
  

	
	/s/ Louis J. D’Ambrosio
	Louis J. D’Ambrosio

 Confirmed and Accepted:

  

							
				
	/s/ W. Bruce Johnson	  	 	 	3/10/2011            	 	 
	W. Bruce Johnson	  		 	DateLetter from Registrant to Dane A. Drobny relating to employment

 EXHIBIT 10.38 
 SEARS HOLDINGS 
  

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

 April 30, 2010 

Mr. Dane Drobny 
 [Address Omitted]

 Dear Dane, 
 We are pleased to
extend to you our offer to join Sears Holdings Corporation (“SHC”) as Senior Vice President, General Counsel and Corporate Secretary, reporting to SHC’s Chief Executive Officer and the Board of the Legal Business Unit. You will be the
most senior legal officer and have the most senior legal function at SHC. Your start date will on or before May 17, 2010 (hereinafter, the “Start Date”). This letter serves as confirmation of our offer. Although this letter serves as
confirmation of our offer, please note that the 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 $650,000. 

  

	 	•	 	 Participation in the Sears Holdings Corporation Annual Incentive Plan with an annual incentive opportunity of 75% of your base salary. 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. Any incentive 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 years and award amounts established as a percentage of base salary. You will first become eligible to participate in an LTIP award at 150% of your base salary starting with the
2010 program as then approved by the Compensation Committee of SHC’s Board of Directors. Your participation in future LTIP’s will be at a level comparable to similarly positioned executives of the Company. 

 

	 	•	 	 You will receive a grant of restricted stock valued at $500,000 under the Sears Holdings Corporation 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 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 one-time sign-on bonus of $150,000 (gross). This sign-on bonus will be payable within thirty (30) days following your Start
Date. In the event you voluntarily terminate your employment with SHC other than for Good Reason (as defined in the Executive Severance Agreement referred to in the paragraph below) or are terminated by SHC for “Cause” (as defined in the
Executive Severance Agreement referred to in the paragraph below) within twelve (12) months of your Start Date, you will be required to repay this amount to the Company. In the

	 	 
event you voluntarily terminate your employment with SHC other than for Good Reason (as defined in the Executive Severance Agreement referred to in the paragraph below) or are terminated by SHC
for “Cause” (as defined in the Executive Severance Agreement referred to in the paragraph below) more than twelve (12) months following your Start Date but prior to twenty four (24) months of your Start Date, you will be required
to repay fifty percent (50%) of this amount to the Company. 

  

	 	•	 	 You will be required to sign an Executive Severance Agreement. If your employment with SHC 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 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 for one (1) year following termination of employment not to solicit employees. You also agree not to aid,
assist or render services for any ‘Sears Competitor’ (as defined in the agreement for one (1) year following termination of employment. The non-disclosure, non-solicitation and non-compete provisions apply regardless of whether you
are eligible for severance benefits under this agreement. As noted above, the restricted stock grant is conditioned upon you signing this agreement. 

  

	 	•	 	 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. 

 

	 	•	 	 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. 

 Dane, 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
  
	  		  	
	 Enclosure
  
	  		  	
	Accepted:	  		  	
			
	 /s/ Dane Drobny
	  		  	4/30/10
	Dane Drobny	  		  	DateLetter from Registrant to William R. Harker relating to employment

 Exhibit 10.39 

 

			
	SEARS HOLDINGS	  	
		  	J. DAVID WORKS
		  	Senior Vice President, Talent and Human Capital Services
	March 17, 2010	  	

 Mr. William R. Harker 
 Dear Bill, 
 I am pleased to tell you that the Compensation Committee of Sears Holdings Board of
Directors has approved the following compensation package for you as you continue in the role of Senior Vice President, General Counsel and Corporate Secretary. Your new compensation package was approved retroactive to January 31, 2010, the
first day of SHC’s 2010 fiscal year. 
 The key elements of your new compensation package are as follows: 

 

	 	•	 	 Annual base salary at a rate of $700,000. 

  

	 	•	 	 Participation in the Sears Holdings Corporation Annual Incentive Plan. Your annual incentive opportunity will increase to ninety percent
(90%) of your base salary. Your incentive under the 2010 Annual Incentive Plan (“2010 AIP”) will be prorated based on the amount of time at each compensation level (base salary and annual incentive target) through
January 29, 2011, the last day of SHC’s 2010 fiscal year. Any annual incentive 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. 

 The table below summarizes the changes in your compensation 

 

															
	  	  	 Title
	  	Base Salary	 	 	Target
Incentive	 	 	Total
Target
Cash	 
	  	  	 	 
					
	 Current
	  	SVP, General Counsel and Corporate Secretary	  	$	500,000	  	 	 	75	% 	 	$	875,000	  
	 New
	  	SVP, General Counsel and Corporate Secretary	  	$	700,000	  	 	 	90	% 	 	$	1,330,000	  
	Increase	  		  	 	40.0	% 	 				 	 	52.0	% 

 In addition to the above, you also
received a grant of restricted stock valued at $500,000 under the Sears Holdings Corporation 2006 Stock Plan. The number of restricted shares granted (4,950) was determined using the market closing price ($101.01 per share) of Sears Holdings
shares on March 9, 2010, the grant date. The restricted shares granted will be scheduled to vest in full on the third anniversary of the grant date, subject to the restrictions set forth under the 2006 Stock Plan and the Restricted Stock Award
Agreement. 
 If you need additional information or clarification, please call. Please sign below and return this letter. 

 

	
	Sincerely,
	
	/s/ J. David Works
	J. David Works
	
	Accepted:

					
			
	 /s/ William R. Harker
	 		 	 4/13/10

	William R. Harker	 		 	Date

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