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Exhibit 10.33  

 
 

AMENDMENT TO AMENDED AND RESTATED
  EMPLOYMENT AGREEMENT    
    

        This AMENDMENT TO AMENDED AND RESTATED EMPLOYMENT AGREEMENT ("Amendment") is entered into as of this
24th day of March, 2003, by and between Larry Thomas ("Executive") and GUITAR CENTER, INC. a Delaware corporation (the
"Company"). 

        Executive
and the Company wish to amend that certain Amended and Restated Employment Agreement entered into between the two parties as of June 6, 2001 (the
"Prior Agreement") to revise the bonus provisions therein. 

        In
consideration of the mutual promises and covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties hereto agree as follows: 

        1.
The Prior Agreement is amended by amending Section 3(b) in its entirety to read as follows: 

        (b)
In addition to the Base Salary, for each fiscal year ending during the Employment Period, Executive shall be eligible to participate in and receive incentive compensation payments
(the "Annual Bonus") pursuant to the terms of the Employer's Senior Executive Performance Bonus Plan (the "Performance Bonus
Plan") upon attainment of the performance goals specified thereunder by the Compensation Committee of the Board. Upon full achievement of the performance goals, the Annual
Bonus will be equal to 100% of Executive's then-current Base Salary, but for less than full achievement of the performance goals, the Annual Bonus shall be a lesser amount in accordance
with a specific formula determined by the Compensation Committee. In addition, to the extent the performance goals are exceeded, the Annual Bonus shall exceed 100% of the Executive's
then-current Base Salary in accordance with a specific formula determined by the Compensation Committee. In no event, however, shall the Annual Bonus for any fiscal year exceed 200% of the
Executive's Base Salary payable with respect to such fiscal year. The Annual Bonus shall be paid to Executive in a lump sum promptly following the end of the fiscal year with respect to which it is
payable. Notwithstanding the foregoing, Company and Executive understand and agree that the Annual Bonuses are intended to constitute "qualified performance-based compensation" satisfying the
requirements of Treasury Regulations Sections 1.162-27(e)(2) through (e)(5), and that the material terms of the performance criteria under which amounts are to be paid pursuant to the
Performance Bonus Plan, and the payment of any amounts under the Performance Bonus Plan, shall be subject to approval by the shareholders of the Company. 

        2.
Except as expressly provided for in this Amendment, no other term or provision of the Prior Agreement is amended or modified in any respect. 

(Signature Page Follows) 

1

 

        In
witness whereof, the parties have executed this Agreement on the day and year first above written. 

	

 	

GUITAR CENTER, INC.
	

 	

 	

 
	 	By:	/s/  BRUCE ROSS       

	

 	

 	

 
	 	Name:	Bruce Ross
	

 	

 	

 
	 	Title:	Chief Financial Officer
	

 	

EXECUTIVE
	

 	

 	

 
	 	/s/  LARRY THOMAS       
 Larry Thomas

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Exhibit 10.34  

 
 

AMENDMENT TO AMENDED AND RESTATED
  EMPLOYMENT AGREEMENT    
    

        This AMENDMENT TO AMENDED AND RESTATED EMPLOYMENT AGREEMENT ("Amendment") is entered into as of this
24th day of March, 2003, by and between Marty Albertson ("Executive") and GUITAR CENTER, INC. a Delaware corporation (the
"Company"). 

        Executive
and the Company wish to amend that certain Amended and Restated Employment Agreement entered into between the two parties as of June 6, 2001 (the
"Prior Agreement") to revise the bonus provisions therein. 

        In
consideration of the mutual promises and covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties hereto agree as follows: 

        1.
The Prior Agreement is amended by amending Section 3(b) in its entirety to read as follows: 

        (b)
In addition to the Base Salary, for each fiscal year ending during the Employment Period, Executive shall be eligible to participate in and receive incentive compensation payments
(the "Annual Bonus") pursuant to the terms of the Employer's Senior Executive Performance Bonus Plan (the "Performance Bonus
Plan") upon attainment of the performance goals specified thereunder by the Compensation Committee of the Board. Upon full achievement of the performance goals, the Annual
Bonus will be equal to 100% of Executive's then-current Base Salary, but for less than full achievement of the performance goals, the Annual Bonus shall be a lesser amount in accordance
with a specific formula determined by the Compensation Committee. In addition, to the extent the performance goals are exceeded, the Annual Bonus shall exceed 100% of the Executive's
then-current Base Salary in accordance with a specific formula determined by the Compensation Committee. In no event, however, shall the Annual Bonus for any fiscal year exceed 200% of the
Executive's Base Salary payable with respect to such fiscal year. The Annual Bonus shall be paid to Executive in a lump sum promptly following the end of the fiscal year with respect to which it is
payable. Notwithstanding the foregoing, Company and Executive understand and agree that the Annual Bonuses are intended to constitute "qualified performance-based compensation" satisfying the
requirements of Treasury Regulations Sections 1.162-27(e)(2) through (e)(5), and that the material terms of the performance criteria under which amounts are to be paid pursuant to the
Performance Bonus Plan, and the payment of any amounts under the Performance Bonus Plan, shall be subject to approval by the shareholders of the Company. 

        2.
Except as expressly provided for in this Amendment, no other term or provision of the Prior Agreement is amended or modified in any respect. 

(Signature Page Follows) 

1

 

        In
witness whereof, the parties have executed this Agreement on the day and year first above written. 

	

 	

GUITAR CENTER, INC.
	

 	

 	

 
	 	By:	/s/  BRUCE ROSS       

	

 	

 	

 
	 	Name:	Bruce Ross
	

 	

 	

 
	 	Title:	Chief Financial Officer
	

 	

EXECUTIVE
	

 	

 	

 
	 	/s/  MARTY ALBERTSON       
 Marty Albertson

2

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Exhibit 10.35  

 
 

GUITAR CENTER, INC.
  SENIOR EXECUTIVE
  PERFORMANCE BONUS PLAN    
    

1.  PURPOSE  

        This Senior Executive Performance Bonus Plan (the "Bonus Plan") is intended to provide an incentive for superior
work and to motivate eligible executives of Guitar Center, Inc., a Delaware corporation (the "Company"), toward even higher achievement and
business results, to tie their goals and interests to those of the Company and its stockholders and to enable the Company to attract and retain highly qualified executives. The Bonus Plan is for the
benefit of Covered Executives (as defined below). The Bonus Plan is designed to ensure the bonuses paid hereunder to Covered Executives are deductible without limit under Section 162(m) of the
Internal Revenue Code of 1986, as amended (the "Code"), and the regulations and interpretations promulgated thereunder. 

2.  COVERED EXECUTIVES  

        From time to time, the Compensation Committee of the Board of Directors of the Company (respectively, the "Compensation
Committee" and "Board") may select certain key executives who are or who at some future date may be "covered employees" as
defined in Section 162(m)(3) of the Code (the "Covered Executives") to be eligible to receive bonuses hereunder. 

3.  ADMINISTRATION  

        Unless otherwise determined by the Board, this Bonus Plan shall be administered by the Compensation Committee. At all times the Compensation Committee shall
consist of at least two members of the Board who shall qualify as "outside directors" under Section 162(m) of the Code. Unless otherwise determined by the Board, the Compensation Committee
shall have the sole discretion and authority to administer and interpret the Bonus Plan. 

4.  BONUS DETERMINATIONS  

        A Covered Executive may receive a bonus payment under the Bonus Plan based upon the attainment of performance objectives which are established by the Compensation
Committee and relate to one or more of the following corporate business criteria (the "Performance Goals"): the Company's net income, operating income,
after-tax cash flow, earnings per share, return on equity, return on invested capital or assets, funds from operations, cost reductions and savings, appreciation in the fair market value
of the Company's stock, or earnings before any one or more of the following items: interest, taxes, depreciation, amortization, or extraordinary or similar non-recurring items or
adjustments. 

        Any
bonuses paid to Covered Executives under the Bonus Plan shall be based upon objectively determinable bonus formulas that tie such bonuses to one or more objective performance
objectives relating to the Performance Goals. Bonus formulas for Covered Executives shall be adopted by the Compensation Committee no later than the latest time permitted by Section 162(m) of
the Code (generally, for performance periods of one year or more, no later than 90 days after the commencement of the performance period). No bonuses shall be paid to Covered Executives unless
and until the Compensation Committee makes a certification in writing with respect to the attainment of the performance objectives as required by Section 162(m) of the Code. The Compensation
Committee shall have no discretion to increase the amount of a Covered Executive's bonus as determined under the applicable bonus formula. 

 

5.  FORM OF BONUS PAYMENT  

        Bonuses payable under this Bonus Plan shall be paid in cash, in a single lump sum. 

6.  MAXIMUM BONUS  

        The maximum bonus payable to a Covered Executive under the Bonus Plan shall not exceed $1,500,000 with respect to any calendar year. 

        The
payment of a bonus hereunder to a Covered Executive with respect to a performance period shall be conditioned upon the Covered Executive's employment by the Company on the last day
of the performance period. 

        All
bonuses paid hereunder shall be subject to applicable state, federal and local tax withholding. 

7.  PAYMENT OF BONUSES  

        Bonuses shall be payable to a Covered Executive who remains continuously employed by the Company throughout the performance period as soon as practicable
following the Compensation Committee's certification in accordance with Section 4 above that the performance objectives with regard to such Covered Executive and performance period have been
attained. 

8.  AMENDMENT AND TERMINATION  

        Subject to the terms of any written employment agreement between a Covered Executive and the Company, as amended, the Company reserves the right to amend or
terminate the Bonus Plan at any time in its sole discretion. Any amendments to the Bonus Plan shall require stockholder approval only to the extent required by Section 162(m) of the Code. 

9.  STOCKHOLDER APPROVAL  

        No bonuses shall be paid under this Bonus Plan unless and until the Company's stockholders shall have approved the Bonus Plan and the Performance Goals as
required by Section 162(m) of the Code. So long as the Bonus Plan shall not have been previously terminated by Company, it shall be resubmitted for approval by the Company's stockholders in the
fifth year after it shall have first been approved by the Company's stockholders, and every fifth year thereafter. In addition, the Bonus Plan shall be resubmitted to the Company's stockholders for
approval as required by Section 162(m) of the Code if it is amended in any way which changes the material terms of the Plan's Performance Goals set forth in the first paragraph of
Section 4, including by materially modifying such Performance Goals, increasing the maximum bonus payable under the Bonus Plan or changing the Plan's eligibility requirements. 

 * * * * * *  

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GUITAR CENTER, INC. SENIOR EXECUTIVE PERFORMANCE BONUS PLAN

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