Document:

exv10wa

 

Exhibit 10(a)

FIRST AMENDMENT

TO THE

SEARS HOLDINGS CORPORATION

SENIOR EXECUTIVE LONG-TERM INCENTIVE PLAN

Pursuant to the authority reserved to the Company at Section 8, the Sears Holdings Corporation
Long-Term Incentive Plan (the “LTIP”) is hereby amended in the following respects, as of the dates
indicated:

1. The first sentence of subsection 5.1(b) is hereby revised to read as follows, effective with
respect to Awards granted on or after the date of adoption of this amendment:

In the event that, prior to the payment date of his or her Award, a Participant (i) retires (as
defined in subsection 5.1(a) above), (ii) suffers a permanent and total disability (as defined in
the written Company Human Resources Policy) while employed by the Company or a Subsidiary, or (iii)
is involuntarily terminated on account of job elimination (rather than poor performance) and
without Cause (as defined in subsection 5.1(a) above), subject to Section 6, below, such individual
shall be entitled to a distribution in an amount equal to the Cash Incentive Award, if any, that
would otherwise be payable to the Participant under subsection 3.1, above, pro-rated through the
date of termination in accordance with subsection 5.1(d) below; provided, however, that in no event
shall a Participant receive any payment hereunder unless (A) LTIP EBITDA for the period from the
inception of the Performance Period through the last completed full month that occurs on or
preceding the Participant’s date of termination is equal to or greater than Target LTIP EBITDA
(pro-rated in accordance with subsection 5.1(d) below), (B) LTIP EBITDA is equal to or greater than
Target LTIP EBITDA for the Performance Period, and (C) as of his date of termination, the
Participant had been employed by one or more of the Company, Sears, Roebuck and Co., Kmart Holding
Corporation or one of their Subsidiaries, for at least 12 months of the Performance Period
applicable to such individual.

2. The first sentence of subsection 5.1(c) is hereby revised to read as follows, effective with
respect to Awards granted on or after the date of adoption of this amendment.

In the event that a Participant dies while employed by the Company or a Subsidiary prior to the
payment date for his or her Award, his or her Target Cash Incentive Award shall be prorated through
the date of death, in accordance with subsection 5.1(d) below, and, subject to Section 6, below,
his or her estate shall be entitled to receive a Cash Incentive Award, equal to his or her prorated
Target Cash Incentive Award and payable in cash, provided, however, that in no event shall a
payment be made with respect to a deceased Participant hereunder unless as of his date of
termination he had been employed by one or more of the Company, Sears, Roebuck and Co., Kmart
Holding Corporation or one of their Subsidiaries, for at least 12 months of the Performance Period
applicable to such individual.

 

 

Exhibit 10(a)

3. Section 8 is hereby revised to read as follows, effective immediately upon the date of adoption
of this amendment:

The Board or Committee may, at any time, amend or terminate the LTIP, or any Award, provided that
no amendment or termination may, in the absence of written consent to the change by the affected
Participant (or, if the Participant is not then living, the affected beneficiary), adversely affect
the rights of any Participant or beneficiary under any Award granted under the LTIP prior to the
date such amendment is adopted by the Board (or the Committee, if applicable). Notwithstanding
anything herein to the contrary, (i) no amendment shall be made that would cause the Plan not to
comply with the requirements of Code Section 409A or any other applicable law or rule of any
applicable securities exchange or similar entity, without Participant consent, and (ii) the LTIP
and any Award thereunder may be amended without Participant consent to the extent that the
Committee determines such amendment necessary to cause the LTIP or Award to comply with the
requirements of Code Section 409A or any other applicable law or rule of any applicable securities
exchange or similar entity.exv10wb

 

Exhibit 10(b)

SEARS HOLDINGS CORPORATION

Director Compensation Program

Effective as of March 24, 2005

	•	 	Only non-employee directors will be compensated for serving as directors of the Company
	 
	•	 	Each non-employee director will receive an annual cash retainer of $40,000
	 
	•	 	The chairperson of the Audit Committee of the Board of Directors will receive an additional annual cash retainer of
$10,000
	 
	•	 	No other director will receive additional compensation for Board service
	 
	•	 	All directors will be reimbursed for out-of-pocket expenses incurred to attend meetings of the Board of Directors and
committees of the Board of DirectorsExhibit 10.1

 

September 12, 2005

 

Peter Edison

 

Dear Peter:

 

The full year 2004 results ended with an after-tax profit, exclusive of the subchapter conversion tax credit, of $286,302.  Unfortunately, this was well below the lowest level where bonus is paid in our 2004 bonus program.  We have adjusted the bonus levels as follows for 2005 in accordance with our new plans.

 

The bonus plan for 2005 has been adjusted to reflect the goals for our company this coming year.  Your bonus will be based on the profit after-tax using a standard corporate tax rate.

 

	
            15%
 	
            of your cumulative salary if the company achieves an after-tax profit of
 	
            $1,000,000
 
	
            22.5%
 	
            of your cumulative salary if the company achieves an after-tax profit of
 	
            $1,200,000
 
	
            30%
 	
            of your cumulative salary if the company achieves an after-tax profit of
 	
            $1,600,000
 
	
            45%
 	
            of your cumulative salary if the company achieves an after-tax profit of
 	
            $2,000,000
 
	
            65%
 	
            of your cumulative salary if the company achieves an after-tax profit of
 	
            $2,700,000
 
	
            82%
 	
            of your cumulative salary if the company achieves an after-tax profit of
 	
            $3,600,000
 
	
            100%
 	
            of your cumulative salary if the company achieves an after-tax profit of
 	
            $4,600,000
 

 

In addition, you will earn 12.5% of your cumulative salary if, in my opinion, you have met the criteria outlined on the attached.

 

The bonus period will be the fiscal months of February 2005 through January 2006.  You must be an active employee of Bakers Footwear Group at the time bonuses are paid to be eligible to receive your bonus.

 

We are excited about the challenges and prospects in the coming year.  We hope it’s profitable for all of us and our shareholders.

 

	
             
 	
            Sincerely,
 

 

 

 

	
             
 	
            Peter Edison
 

 

ss

[Attachment, 2005 Goals and Objectives, omitted. The Company undertakes to furnish a
supplemental copy of such attachment to the Securities and Exchange Commission upon request.]Exhibit 10.2

 

September 12, 2005

 

Michele Bergerac

 

Dear Michele:

 

The full year 2004 results ended with an after-tax profit, exclusive of the subchapter conversion tax credit, of $286,302.  Unfortunately, this was well below the lowest level where bonus is paid in our 2004 bonus program.  We have adjusted the bonus levels as follows for 2005 in accordance with our new plans.

 

The bonus plan for 2005 has been adjusted to reflect the goals for our company this coming year.  Your bonus will be based on the profit after-tax using a standard corporate tax rate.

 

	
            15%
 	
            of your cumulative salary if the company achieves an after-tax profit of
 	
            $1,000,000
 
	
            22.5%
 	
            of your cumulative salary if the company achieves an after-tax profit of
 	
            $1,200,000
 
	
            30%
 	
            of your cumulative salary if the company achieves an after-tax profit of
 	
            $1,600,000
 
	
            45%
 	
            of your cumulative salary if the company achieves an after-tax profit of
 	
            $2,000,000
 
	
            65%
 	
            of your cumulative salary if the company achieves an after-tax profit of
 	
            $2,700,000
 
	
            82%
 	
            of your cumulative salary if the company achieves an after-tax profit of
 	
            $3,600,000
 
	
            100%
 	
            of your cumulative salary if the company achieves an after-tax profit of
 	
            $4,600,000
 

 

In addition, you will earn 12.5% of your cumulative salary if, in my opinion, you have met the criteria outlined on the attached.

 

The bonus period will be the fiscal months of February 2005 through January 2006.  You must be an active employee of Bakers Footwear Group at the time bonuses are paid to be eligible to receive your bonus.

 

We are excited about the challenges and prospects in the coming year.  We hope it’s profitable for all of us and our shareholders.

 

	
             
 	
            Sincerely,
 

 

 

 

 

	
             
 	
            Peter Edison
 

 

ss 

[Attachment, 2005 Goals and Objectives, omitted. The Company undertakes to furnish a
supplemental copy of such attachment to the Securities and Exchange Commission upon request.]Exhibit 10.3

 

September 12, 2005

 

Stan Tusman

 

Dear Stan:

 

The full year 2004 results ended with an after-tax profit, exclusive of the subchapter conversion tax credit, of $286,302.  Unfortunately, this was well below the lowest level where bonus is paid in our 2004 bonus program.  We have adjusted the bonus levels as follows for 2005 in accordance with our new plans.

 

The bonus plan for 2005 has been adjusted to reflect the goals for our company this coming year.  Your bonus will be based on the profit after-tax using a standard corporate tax rate.

 

	
            7.5%
 	
            of your cumulative salary if the company achieves an after-tax profit of
 	
            $   400,000
 
	
            15%
 	
            of your cumulative salary if the company achieves an after-tax profit of
 	
            $   800,000
 
	
            22.5%
 	
            of your cumulative salary if the company achieves an after-tax profit of
 	
            $1,200,000
 
	
            30%
 	
            of your cumulative salary if the company achieves an after-tax profit of
 	
            $1,600,000
 
	
            37.5%
 	
            of your cumulative salary if the company achieves an after-tax profit of
 	
            $2,000,000
 
	
            50%
 	
            of your cumulative salary if the company achieves an after-tax profit of
 	
            $2,700,000
 
	
            62.5%
 	
            of your cumulative salary if the company achieves an after-tax profit of
 	
            $3,600,000
 
	
            75%
 	
            of your cumulative salary if the company achieves an after-tax profit of
 	
            $4,600,000
 

 

In addition, you will earn 12.5% of your cumulative salary if, in my opinion, you have met the criteria outlined on the attached.

 

The bonus period will be the fiscal months of February 2005 through January 2006.  You must be an active employee of Bakers Footwear Group at the time bonuses are paid to be eligible to receive your bonus.

 

We are excited about the challenges and prospects in the coming year.  We hope it’s profitable for all of us and our shareholders.

 

	
             
 	
            Sincerely,
 

 

 

 

	
             
 	
            Peter Edison
 

 

ss

[Attachment, 2005 Goals and Objectives, omitted. The Company undertakes to furnish a
supplemental copy of such attachment to the Securities and Exchange Commission upon request.]

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