Document:

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                                                                   EXHIBIT 10.29

                            INDEMNIFICATION AGREEMENT

     This Indemnification Agreement ("Agreement") is entered into effective as
of [_____], 2005, by and between Eddie Bauer Holdings, Inc., a Delaware
corporation (the "Company"), and _______________ ("Indemnitee").

     WHEREAS, the Company and Indemnitee recognize that there has been a
substantial increase in corporate litigation in general, subjecting directors,
officers, employees, agents and fiduciaries to expensive litigation risks at the
same time as the availability and coverage of liability insurance has been
severely limited;

     WHEREAS, Indemnitee does not regard the current protection available as
adequate under the present circumstances, and the Indemnitee and other
directors, officers, employees, agents and fiduciaries of the Company may not be
willing to continue to serve in such capacities without additional protection;

     WHEREAS, the Company desires to attract and retain the services of highly
qualified individuals, such as Indemnitee, to serve the Company and, in part, in
order to induce Indemnitee to continue to provide services to the Company,
wishes to provide for the indemnification and advancing of expenses to
Indemnitee to the maximum extent permitted by law; and

     WHEREAS, in view of the considerations set forth above, the Company desires
that effective upon the date referred to above, Indemnitee shall be indemnified
by the Company as set forth herein.

     NOW, THEREFORE, the Company and Indemnitee hereby agree as follows:

     1. Indemnification.

     (a) Indemnification of Expenses. The Company shall indemnify Indemnitee to
the fullest extent permitted by law if Indemnitee was or is or becomes a party
to or witness or other participant in, or is threatened to be made a party to or
witness or other participant in, a Claim by reason of (or arising in part out
of) an Indemnifiable Event against any and all Expenses, including all interest,
assessments and other charges paid or payable in connection with or in respect
of such Expenses. Such payment of Expenses shall be made by the Company as soon
as practicable but in any event no later than ten (10) days after written demand
by Indemnitee therefor is presented to the Company.

     (b) Reviewing Party.

          (i) The obligations of the Company under Section l(a) shall be subject
     to

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     the condition that the Reviewing Party shall not have determined (in a
     written opinion, in any case in which the Independent Legal Counsel
     referred to in Section l(c) hereof is involved) that Indemnitee would not
     be permitted to be indemnified under applicable law. The obligation of the
     Company to make an advance payment of Expenses to Indemnitee pursuant to
     Section 2(a) (an "Expense Advance") shall be subject to the condition that,
     if, when and to the extent that the Reviewing Party determines that
     Indemnitee would not be permitted to be so indemnified under applicable
     law, the Company shall be entitled to be reimbursed by Indemnitee (who
     hereby agrees to reimburse the Company) for all such amounts theretofore
     paid.

          (ii) Notwithstanding the foregoing paragraph (b)(i), if Indemnitee has
     commenced or thereafter commences legal proceedings in a court of competent
     jurisdiction to secure a determination that Indemnitee should be
     indemnified under applicable law, any determination made by the Reviewing
     Party that Indemnitee would not be permitted to be indemnified under
     applicable law shall not be binding, and Indemnitee shall not be required
     to reimburse the Company for any Expense Advance, until final judicial
     determination is made with respect thereto (as to which all rights of
     appeal therefrom have been exhausted or lapsed).

          (iii) Indemnitee's obligation to reimburse the Company for any Expense
     Advance shall be unsecured and no interest shall be charged thereon.

          (iv) If there has not been a Change in Control, the Reviewing Party
     shall be the Board of Directors or a duly appointed committee thereof, and
     if there has been such a Change in Control (other than a Change in Control
     which has been approved by a majority of the Company's Board of Directors
     who were directors immediately prior to such Change in Control), the
     Reviewing Party shall be the Independent Legal Counsel referred to in
     Section l(c) hereof.

          (v) If there has been no determination by the Reviewing Party or if
     the Reviewing Party determines that Indemnitee substantively would not be
     permitted to be indemnified in whole or in part under applicable law,
     Indemnitee shall have the right to commence litigation seeking an initial
     determination by the court or challenging any such determination by the
     Reviewing Party or any aspect thereof, including the legal or factual bases
     therefor, and the Company hereby consents to service of process and to
     appear in any such proceeding. Any determination by the Reviewing Party
     otherwise shall be conclusive and binding on the Company and Indemnitee.

     (c) Change in Control. The Company agrees that if there is a Change in
Control of the Company (other than a Change in Control which has been approved
by a majority of the Company's Board of Directors who were directors immediately
prior to such Change in Control) then with respect to all matters thereafter
arising concerning the rights

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of Indemnitee to payments of Expenses and Expense Advances under this Agreement
or any other agreement or under the Company's Certificate of Incorporation or
By-laws as now or hereafter in effect, the Company shall seek legal advice only
from legal counsel selected by Indemnitee and approved by the Company (which
approval shall not be unreasonably withheld) ("Independent Legal Counsel"). Such
counsel, among other things, shall render its written opinion to the Company and
Indemnitee as to whether and to what extent Indemnitee would be permitted to be
indemnified under applicable law. The Company agrees to pay the reasonable fees
of the Independent Legal Counsel referred to above and to fully indemnify such
counsel against any and all expenses (including attorneys' fees), claims,
liabilities and damages arising out of or relating to this Agreement or its
engagement pursuant hereto.

     (d) Mandatory Payment of Expenses. Notwithstanding any other provision of
this Agreement other than Section 9 hereof, to the extent that Indemnitee has
been successful on the merits or otherwise, including, without limitation, the
dismissal of an action without prejudice, in defense of any action, suit,
proceeding, inquiry or investigation referred to in Section l(a) hereof or in
the defense of any claim, issue or matter therein, Indemnitee shall be
indemnified against all Expenses incurred by Indemnitee in connection therewith.

     2. Expenses; Indemnification Procedure.

     (a) Advancement of Expenses. The Company shall advance all Expenses
incurred by Indemnitee. The advances to be made hereunder shall be paid by the
Company to Indemnitee as soon as practicable but in any event no later than ten
(10) days after written demand by Indemnitee therefor to the Company.

     (b) Notice/Cooperation by Indemnitee. Indemnitee shall, as a condition
precedent to Indemnitee's right to be indemnified under this Agreement, give the
Company notice in writing as soon as practicable of any Claim made against
Indemnitee for which indemnification will or could be sought under this
Agreement; provided however, that a failure to provide such notice in accordance
with this Section 2(b) shall not affect Indemnitee's rights to receive any
Expenses or Expense Advances hereunder unless and to the extent that the Company
did not otherwise receive notice of such Claim and such failure of Indemnitee to
provide such notice results in the forfeiture by the Company of substantial
rights and defenses. Notice to the Company shall be directed to the Chief
Executive Officer of the Company, with a copy to the Company's Secretary, at the
address shown on the signature page of this Agreement (or such other address as
the Company shall designate in writing to Indemnitee). In addition, Indemnitee
shall give the Company such information and cooperation as it may reasonably
require and as shall be within Indemnitee's power. Promptly after receipt by
Indemnitee, or the Company, of any notice or document respecting the
commencement of a Claim naming or involving Indemnitee and relating to an
Indemnifiable Event with respect to which Indemnitee may be entitled to
indemnification or an Expense Advance pursuant to this Agreement, the

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party receiving the same shall notify the other party promptly of such receipt.

     (c) No Presumptions; Burden of Proof. For purposes of this Agreement, the
termination of any Claim by judgment, order, settlement (whether with or without
court approval) or conviction, or upon a plea of nolo contendere, or its
equivalent, shall not create a presumption that Indemnitee did not meet any
particular standard of conduct or have any particular belief or that a court has
determined that indemnification is not permitted by applicable law. In addition,
neither the failure of the Reviewing Party to have made a determination as to
whether Indemnitee has met any particular standard of conduct or had any
particular belief, nor an actual determination by the Reviewing Party that
Indemnitee has not met such standard of conduct or did not have such belief,
prior to the commencement of legal proceedings by Indemnitee to secure a
judicial determination that Indemnitee should be indemnified under applicable
law, shall be a defense to Indemnitee's claim or create a presumption that
Indemnitee has not met any particular standard of conduct or did not have any
particular belief. In connection with any determination by the Reviewing Party
or otherwise as to whether the Indemnitee is entitled to be indemnified
hereunder, the burden of proof shall be on the Company to establish that
Indemnitee is not so entitled.

     (d) Notice to Insurers. If, at the time of the receipt by the Company of a
notice of a Claim pursuant to Section 2(b) hereof, the Company, or any affiliate
of the Company, has liability insurance in effect which may cover such Claim,
the Company shall give prompt notice of the commencement of such Claim to the
insurers in accordance with the procedures set forth in the respective policies.
The Company shall thereafter take all necessary or desirable action to cause
such insurers to pay, on behalf of the Indemnitee, all amounts payable as a
result of such action, suit, proceeding, inquiry or investigation in accordance
with the terms of such policies.

     (e) Selection of Counsel. In the event the Company shall be obligated
hereunder to pay the Expenses of any Claim, the Company, if appropriate, shall
be entitled to assume the defense of such Claim, with counsel approved by
Indemnitee ("Retained Counsel"), which approval shall not be unreasonably
withheld, upon the delivery to Indemnitee of written notice of its election so
to do. After delivery of such notice, approval of Retained Counsel by Indemnitee
and the retention of Retained Counsel by the Company, the Company will not be
liable to Indemnitee under this Agreement for any fees of separate counsel
("Separate Counsel") subsequently incurred by Indemnitee with respect to the
same Claim; provided that, (i) Indemnitee shall have the right to employ
Separate Counsel in any such Claim at Indemnitee's expense and (ii) if (A) the
employment of Separate Counsel by Indemnitee has been previously authorized by
the Company, (B) Indemnitee shall have reasonably concluded that there may be a
conflict of interest between the Company and Indemnitee in the conduct of any
such defense, or (C) the Company shall not continue to retain Retained Counsel
to defend such Claim, then the fees and expenses of Indemnitee's Separate
Counsel shall be at the expense of the Company. The Company shall have the right
to conduct such defense as it sees fit in its

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sole discretion, including the right to settle any claim against Indemnitee,
without the consent of the Indemnitee, provided however, that the Company shall
not settle any Claim requiring the admission of guilt or responsibility by
Indemnitee without Indemnitee's prior written consent, such consent to not be
unreasonably withheld.

     3. Additional Indemnification Rights; Nonexclusivity.

     (a) Scope. The Company hereby agrees to indemnify the Indemnitee to the
fullest extent permitted by law, notwithstanding that such indemnification may
not be specifically authorized by the other provisions of this Agreement, the
Company's Certificate of Incorporation or Bylaws as now or hereafter in effect
or by statute. In the event of any change after the date of this Agreement in
any applicable law, statute or rule which expands the right of a Delaware
corporation to indemnify a member of its board of directors or an officer,
employee, agent or fiduciary, it is the intent of the parties hereto that
Indemnitee shall enjoy by this Agreement the greater benefits afforded by such
change. In the event of any change in any applicable law, statute or rule which
narrows the right of a Delaware corporation to indemnify a member of its board
of directors or an officer, employee, agent or fiduciary, such change, to the
extent not otherwise required by such law, statute or rule to be applied to this
Agreement, shall have no effect on this Agreement or the parties' rights and
obligations hereunder, except as set forth in Section 8(a) hereof.

     (b) Nonexclusivity. The indemnification provided by this Agreement shall be
in addition to any rights to which Indemnitee may be entitled under the
Company's Certificate of Incorporation, its Bylaws, any other agreement, any
vote of stockholders or disinterested directors, the Delaware General
Corporation Law, or otherwise. The indemnification provided under this Agreement
shall continue as to Indemnitee for any action taken or not taken while serving
at the request of the Company in an indemnified capacity even though Indemnitee
may have ceased to serve in such capacity.

     4. No Duplication of Payments. The Company shall not be liable under this
Agreement to make any payment in connection with any Claim made against
Indemnitee to the extent Indemnitee has otherwise actually received payment
(under any insurance policy, certificate of incorporation, by-law or otherwise)
of the amounts otherwise indemnifiable hereunder.

     5. Partial Indemnification. If Indemnitee is entitled under any provision
of this Agreement to indemnification by the Company for some or a portion of
Expenses incurred in connection with any Claim, but not, however, for all of the
total amount thereof, the Company shall nevertheless indemnify Indemnitee for
the portion of such Expenses to which Indemnitee is entitled.

     6. Mutual Acknowledgment. Both the Company and Indemnitee acknowledge that
in certain instances, Federal law or applicable public policy may prohibit the

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Company from indemnifying its directors, officers, employees, agents or
fiduciaries under this Agreement or otherwise. Indemnitee understands and
acknowledges that the Company has undertaken or may be required in the future to
undertake with the Securities and Exchange Commission to submit the question of
indemnification to a court in certain circumstances for a determination of the
Company's right under public policy to indemnify Indemnitee.

     7. Liability Insurance. To the extent the Company maintains liability
insurance applicable to directors, officers, employees, agents or fiduciaries,
Indemnitee shall be covered by such policies in such a manner as to provide
Indemnitee the same rights and benefits as are accorded to the most favorably
insured of the Company's directors, if Indemnitee is a director; or of the
Company's officers, if Indemnitee is not a director of the Company but is an
officer; or of the Company's key employees, agents or fiduciaries, if Indemnitee
is not an officer or director but is a key employee, agent or fiduciary.

     8. Exceptions. Any other provision herein to the contrary notwithstanding,
the Company shall not be obligated pursuant to the terms of this Agreement:

     (a) Excluded Action or Omissions. To indemnify Indemnitee for acts,
omissions or transactions from which Indemnitee may not be relieved of liability
under applicable law; provided, however, that notwithstanding any limitation set
forth in this Section 8(a) regarding the Company's obligation to provide
indemnification and subject to Section 1(b), Indemnitee shall be entitled under
Section 2 to receive Expense Advances hereunder with respect to any such Claim
unless and until a court having jurisdiction over the Claim shall have made a
final judicial determination (as to which all rights of appeal therefrom have
been exhausted or lapsed) that Indemnitee has engaged in acts, omissions or
transactions for which Indemnitee is prohibited from receiving indemnification
under this Agreement or applicable law.

     (b) Claims Initiated by Indemnitee. To indemnify or advance Expenses to
Indemnitee with respect to Claims initiated or brought voluntarily by Indemnitee
and not by way of defense, except (i) with respect to actions or proceedings
brought to establish or enforce a right to indemnification under this Agreement
or any other agreement or insurance policy or under the Company's Certificate of
Incorporation or By-laws now or hereafter in effect relating to Claims for
Indemnifiable Events, (ii) in specific cases if the Board of Directors has
approved the initiation or bringing of such Claim, or (iii) as otherwise as
required under Section 145 of the Delaware General Corporation Law, regardless
of whether Indemnitee ultimately is determined to be entitled to such
indemnification, advance expense payment or insurance recovery, as the case may
be.

     (c) Lack of Good Faith. To indemnify Indemnitee for any expenses incurred
by the Indemnitee with respect to any proceeding instituted by Indemnitee to
enforce or interpret this Agreement, if a court of competent jurisdiction
determines that each of the material assertions made by the Indemnitee in such
proceeding was not made in good

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faith or was frivolous.

     (d) Claims Under Section 16. To indemnify Indemnitee for expenses and the
payment of profits arising from the purchase and sale by Indemnitee of
securities in violation of Section 16 of the Securities Exchange Act of 1934, as
amended, or the rules and regulations promulgated thereunder, or any similar
successor statute, rules or regulations; provided however, that notwithstanding
any limitation set forth in this Section 8(d) regarding the Company's obligation
to provide indemnification and subject to Section 1(b), Indemnitee shall be
entitled under Section 2 to receive Expense Advances hereunder with respect to
any such Claim unless and until a court having jurisdiction over the Claim shall
have made a final judicial determination (as to which all rights of appeal
therefrom have been exhausted or lapsed) that Indemnitee has violated said
statute.

     9. Period of Limitations. No legal action shall be brought and no cause of
action shall be asserted by or in the right of the Company against Indemnitee,
Indemnitee's estate, spouse, heirs, executors or personal or legal
representatives after the expiration of three years from the date of accrual of
such cause of action, and any claim or cause of action of the Company shall be
extinguished and deemed released unless asserted by the timely filing of a legal
action within such three-year period; provided, however, that if any shorter
period of limitations is otherwise applicable to any such cause of action, such
shorter period shall govern.

     10. Definitions. For the purposes of this Agreement, the following terms
shall have the meaning assigned to them hereunder:

     (a) Change in Control shall mean any event in which:

          (i) any "person" (as such term is used in Sections 13(d) and 14(d) of
     the Securities Exchange Act of 1934, as amended), other than a trustee or
     other fiduciary (acting in such capacity) holding securities under an
     employee benefit plan of the Company, or a corporation owned directly or
     indirectly by the stockholders of the Company in substantially the same
     proportions as their ownership of stock of the Company, is or becomes the
     "beneficial owner" (as defined in Rule 13d-3 under said Act), directly or
     indirectly, of securities of the Company representing more than 50% of the
     total voting power of the Company's then outstanding Voting Securities.

          (ii) during any period of two consecutive years, individuals who at
     the beginning of such period constitute the Board of Directors of the
     Company and any new directors whose election by the Board of Directors or
     nomination for election by the Company's stockholders was approved by a
     vote of at least two thirds (2/3) of the directors then still in office who
     either were directors at the beginning of the period or whose election or
     nomination for election was previously so approved, cease for any reason to
     constitute a majority thereof; or

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          (iii) the stockholders of the Company approve a merger or
     consolidation of the Company with any other corporation other than a merger
     or consolidation which would result in the Voting Securities of the Company
     outstanding immediately prior thereto continuing to represent (either by
     remaining outstanding or by being converted into Voting Securities of the
     surviving entity) at least 50% of the total voting power represented by the
     Voting Securities of the Company or such surviving entity outstanding
     immediately after such merger or consolidation, or the stockholders of the
     Company approve a plan of complete liquidation of the Company or an
     agreement for the sale or disposition by the Company of (in one transaction
     or a series of related transactions) all or substantially all of the
     Company's assets.

     (b) Claim shall mean any threatened, pending or completed action, suit,
proceeding, arbitration, or alternative dispute resolution mechanism, or any
hearing, inquiry or investigation that Indemnitee in good faith believes might
lead to the institution of any action, suit, proceeding, arbitration or
alternative dispute resolution mechanism, whether civil, criminal,
administrative, investigative or otherwise.

     (c) Company shall mean and include, in addition to the Company and any
successor corporation, any constituent corporation (including any constituent of
a constituent) absorbed in a consolidation or merger which, if its separate
existence were continued, would have had power and authority to indemnify its
directors, officers, employees, agents or fiduciaries, so that if Indemnitee is
or was a director, officer, employee, agent or fiduciary of such constituent
corporation, or is or was serving at the request of such constituent corporation
as a director, officer, employee, agent or fiduciary of another corporation,
partnership, joint venture, employee benefit plan, trust or other enterprise,
Indemnitee shall stand in the same position under the provisions of this
Agreement with respect to the resulting or surviving corporation as Indemnitee
would have with respect to such constituent corporation if its separate
existence had continued.

     (d) Expenses shall mean and include any and all expenses, including
attorneys' fees and all other costs, expenses and obligations incurred in
connection with investigating, defending, being a witness in or participating in
(including on appeal), or preparing to defend, be a witness in or participate
in, any action, suit, proceeding, arbitration, alternative dispute resolution
mechanism, hearing, inquiry or investigation, and any and all judgments, fines,
penalties and amounts paid in settlement (if such settlement is approved in
advance by the Company, which approval shall not be unreasonably withheld) of
any Claim and any federal, state, local or foreign taxes imposed on the
Indemnitee as a result of the actual or deemed receipt of any payments under
this Agreement.

     (e) Indemnifiable Event shall mean any event or occurrence related to the
fact that Indemnitee is or was a director, officer, partner, employee, trustee,
agent or fiduciary of

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the Company, or any subsidiary of the Company, or is or was serving at the
request of the Company as a director, officer, partner, employee, trustee, agent
or fiduciary of any other corporation, partnership, joint venture, trust or
other enterprise, which imposes duties on, or involves services by, such
director, officer, employee, agent or fiduciary while serving in such capacity,
or by reason of any action or inaction on the part of Indemnitee in such
capacity.

     (f) Reviewing Party shall mean a duly appointed committee thereof or the
Company's Board of Directors or Independent Legal Counsel.

     (g) Voting Securities shall mean any securities of the Company the holders
of which are entitled to elect a majority of the Company's directors.

     11. Counterparts. This Agreement may be executed in one or more
counterparts, each of which shall constitute an original.

     12. Binding Effect; Successors and Assigns. This Agreement shall be binding
upon and inure to the benefit of and be enforceable by the parties hereto and
their respective successors, assigns, including any direct or indirect successor
by purchase, merger, consolidation or otherwise to all or substantially all of
the business and/or assets of the Company, spouses, heirs, and personal and
legal representatives. The Company shall require and cause any successor
(whether direct or indirect by purchase, merger, consolidation or otherwise) to
all, substantially all, or a substantial part, of the business and/or assets of
the Company, by written agreement in form and substance satisfactory to
Indemnitee, expressly to assume and agree to perform this Agreement in the same
manner and to the same extent that the Company would be required to perform if
no such succession had taken place. This Agreement shall continue in effect
regardless of whether Indemnitee continues to serve as a director, officer,
employee, agent or fiduciary (as applicable) of the Company or of any other
enterprise at the Company's request.

     13. Attorneys' Fees. In the event that any action is instituted by
Indemnitee under this Agreement or under any liability insurance policies
maintained by the Company to enforce or interpret any of the terms hereof or
thereof, Indemnitee shall be entitled to be paid all Expenses incurred by
Indemnitee with respect to such action, regardless of whether Indemnitee is
ultimately successful in such action, and shall be entitled to the advancement
of Expenses with respect to such action, unless as a part of such action a court
of competent jurisdiction over such action determines that each of the material
assertions made by Indemnitee as a basis for such action were not made in good
faith or were frivolous. In the event of an action instituted by or in the name
of the Company under this Agreement to enforce or interpret any of the terms of
this Agreement, Indemnitee shall be entitled to be paid all Expenses incurred by
Indemnitee in defense of such action (including costs and expenses incurred with
respect to Indemnitee's counterclaims and cross-claims made in such action), and
shall be entitled to the advancement of Expenses with respect to such action,
unless as a part of such action a

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court having jurisdiction over such action determines that each of Indemnitee's
material defenses to such action were made in bad faith or were frivolous.

     14. Notice. All notices, requests, demands and other communications under
this Agreement shall be in writing and shall be deemed duly given (i) if
delivered by hand and signed for by the addressee, on the date of such receipt,
or (ii) if mailed by domestic certified or registered mail with postage prepaid,
on the third business day after the date postmarked. Addresses for notice to
either party are as shown on the signature page of this Agreement, or as
subsequently modified by written notice.

     15. Consent to Jurisdiction. The Company and Indemnitee each hereby
irrevocably consent to the jurisdiction of the courts of the State of Delaware
for all purposes in connection with any action or proceeding which arises out of
or relates to this Agreement and agree that any action instituted under this
Agreement shall be commenced, prosecuted and continued only in the Court of
Chancery of the State of Delaware in and for New Castle County, which shall be
the exclusive and only proper forum for adjudicating such a claim.

     16. Severability. The provisions of this Agreement shall be severable in
the event that any of the provisions hereof (including any provision within a
single section, paragraph or sentence) are held by a court of competent
jurisdiction to be invalid, void or otherwise unenforceable, and the remaining
provisions shall remain enforceable to the fullest extent permitted by law.
Furthermore, to the fullest extent possible, the provisions of this Agreement
(including, without limitations, each portion of this Agreement containing any
provision held to be invalid, void or otherwise unenforceable, that is not
itself invalid, void or unenforceable) shall be construed so as to give effect
to the intent manifested by the provision held invalid, illegal or
unenforceable.

     17. Choice of Law. This Agreement shall be governed by and its provisions
construed and enforced in accordance with the laws of the State of Delaware, as
applied to contracts between Delaware residents, entered into and to be
performed entirely within the State of Delaware, without regard to the conflict
of laws principles thereof.

     18. Subrogation. In the event of payment under this Agreement, the Company
shall be subrogated to the extent of such payment to all of the rights of
recovery of Indemnitee, who shall execute all documents required and shall do
all acts that may be necessary to secure such rights and to enable the Company
effectively to bring suit to enforce such rights.

     19. Amendment and Termination. No amendment, modification, termination or
cancellation of this Agreement shall be effective unless it is in writing signed
by both the parties hereto. No waiver of any of the provisions of this Agreement
shall be deemed or shall constitute a waiver of any other provisions hereof
(whether or not similar) nor shall such waiver constitute a continuing waiver.

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     20. Integration and Entire Agreement. This Agreement sets forth the entire
understanding between the parties hereto and supersedes and merges all previous
written and oral negotiations, commitments, understandings and agreements
relating to the subject matter hereof between the parties hereto.

     21. No Construction as Employment Agreement. Nothing contained in this
Agreement shall be construed as giving Indemnitee any right to be retained in
the employ of the Company or any of its subsidiaries.

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     IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of
the date first above written.

                                        Eddie Bauer Holdings, Inc.

                                        By:
                                            ------------------------------------
                                        Name:
                                              ----------------------------------
                                        Title:
                                               ---------------------------------
                                        Address:
                                                 -------------------------------

AGREED TO AND ACCEPTED:

INDEMNITEE:

By:
    ---------------------------------
Name:
      -------------------------------
Address:
         ----------------------------<PAGE>

                                                                   EXHIBIT 10.30

                                     [LOGO]

                           PERFORMANCE INCENTIVE PLAN
                               KERP PARTICIPANTS
                                    2003-2004

                                     Page 1
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INTRODUCTION

The 2003-2004 Spiegel Group Performance Incentive Plan provides the opportunity
for compensation in addition to Base Salary to designated employees of the
Spiegel, Inc. Key Employee Retention Plan (KERP). This Plan replaces any
previous incentive plan for the period through June 30, 2004. Payout occurs if
the designated operating results are met as defined by the CEO of The Spiegel
Group in conjunction with the Merchant Company Leaders and the Creditors
Committee. Terms are defined at the end of this Summary Plan Description.

BUSINESS UNITS

Business units are divided in to two categories, Merchant and Support units as
follows:

MERCHANT BUSINESS UNITS (MBUS)

Eddie Bauer
Spiegel Catalog
Newport News

SUPPORT BUSINESS UNITS (SBUS)

Distribution Fulfillment Services (DFS)
Spiegel Group TeleServices (SGTS)
Spiegel Management Group - Corporate
Spiegel Management Group - Information Services (IS)

PERFORMANCE TARGETS

Employees will be eligible for an incentive payment based upon the results of
two objectives, their business unit EBIT and The Spiegel Group EBIT (for
continuing operations):

      Merchant Business Units

            -     Two thirds (2/3) of the incentive payout is based on the
                  merchant business unit EBIT.

            -     One third (1/3) of the incentive payout is based on The
                  Spiegel Group EBIT.

            -     Newport News incentive payouts will be based completely on
                  Newport News EBIT.

      Support Business Units

            -     Two thirds (2/3) of the incentive payout is based on The
                  Spiegel Group EBIT.

            -     One third (1/3) of the incentive payout is based on the
                  results of the support business unit EBIT.

                                    [GRAPH]

<PAGE>

SPIEGEL GROUP EBIT

The EBIT performance of The Spiegel Group includes the EBIT results of:

                                   Eddie Bauer
                                 Spiegel Catalog
                         Group Operations (IS/DFS/SGTS)
                            Spiegel Management Group*

*Excludes non-recurring charges

PERFORMANCE INCENTIVE POOLS

Performance incentive pools totaling approximately $8.92 million have been
established under the KERP to provide payouts for target EBIT achievement.
Should the Business Units achieve EBIT in excess of the targets, the pools may
be increased to provide additional payout and may be decreased accordingly if
not all performance targets are achieved.

CHAPTER 11 EMERGENCE - PAYOUT ACCELERATORS

To reward employees for early emergence from bankruptcy, the payout opportunity
will be increased by month if the Company emerges from bankruptcy prior to June
2004. Payout will be capped at 150%.

INCENTIVE LEVEL

Level 1 - 3 (KERP retention percentage is 50% or above)

      -     Participants will be eligible to receive a target payout equal to
            30% of their Base Salary.

      -     The performance incentive pools may also provide additional payout
            to participants in levels 1-3. Any additional payouts will be
            distributed at the discretion of the CEO.

Level 4 & 5 (KERP retention percentage is between 30%-40%)

      -     Participants will be eligible to receive a target payout equal to
            10% of their Base Salary.

ADMINISTRATION

ELIGIBILITY

Designated employees are eligible to participate in the annual incentive plan if
they meet the following criteria:

ACTIVE EMPLOYEES:

      -     Employees must be hired before March 31, 2004 and determined to be
            eligible by the CEO of the Significant Subsidiary.

                  -     If hired between July 1, 2003 and March 31, 2004 they
                        will be eligible to receive a prorated payout based upon
                        their actual service in an eligible position.

                  -     If hired and designated as eligible before July 1, 2003,
                        the employee will be eligible to receive a full payout
                        for this bonus plan year.

      -     Employees must be employed in Good Standing by a business unit of
            The Spiegel Group, and have not provided notice of termination of
            employment on or prior to the payout date.

      -     Employees must have a satisfactory performance rating (as defined by
            their business unit) on their most recent performance evaluation.

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      -     In the event of a Third Party Subsidiary Transaction which occurs
            prior to the end of the Plan Year, employees who are employed by
            such Significant Subsidiary at the date of such Third Party
            Subsidiary Transaction may receive a pro rata Incentive Bonus. The
            amount of the pro rata Incentive Bonus, if any, will be based on the
            applicable cumulative EBIT performance beginning on the first month
            of the Plan Year and continuing throughout the last day of the month
            immediately prior to the month in which the Third Party Subsidiary
            Transaction occurs.

SEPARATED EMPLOYEES:

      -     Employees who retire, voluntarily separate or give notice of
            resignation prior to the payout date will not receive an incentive
            plan payment.

      -     An employee who is Involuntarily Terminated (other than for
            Misconduct) prior to the payout date may be eligible to receive, at
            the sole

            discretion of the CEO, a pro-rata portion of the Incentive Bonus.
            Such Incentive Bonus, if any, will be payable at the time Incentive
            Bonuses, if any, are paid to other eligible employees.

      -     Employees who are separated due to death or Incapacity prior to
            receiving the Incentive Bonus may be eligible to receive, at the
            sole discretion of the CEO, a pro-rata portion of the Incentive
            Bonus. Such Incentive Bonus, if any, will be payable at the time
            Incentive Bonuses, if any, are paid to other eligible employees.

ELIGIBLE INCOME

      -     Incentive Bonuses will be calculated using Base Salary as of the
            last day of the plan year (June 30, 2004) or last day in the
            eligible position.

      -     The incentive payment will be pro-rated for any approved unpaid
            leave of absence lasting more than twelve weeks.

EMPLOYEE ELIGIBILITY CHANGES

      -     Employees, who worked for more than one Spiegel Group Company in
            bonus eligible positions, will be eligible for a total payment using
            the bonus calculation crediting the time in each eligible position
            under the applicable incentive measurements for that business unit.

PAYOUT

Payout of the Incentive Bonus is scheduled to occur within sixty days of (i)
June 30, 2004 or (ii) emergence from Chapter 11, whichever is later.

NOTICE REQUIREMENT PRIOR TO PAYOUT

Prior to making any payment under this Plan, the Company shall provide at least
fifteen (15) days of prior notice to the Creditors' Committee and the United
States Trustee. Such notice shall be in writing and shall set forth the name and
title of each employee who is scheduled to receive any such payment, as well as
the amount of such payment. If the Company receives a written notice of
objection from either the Creditors' Committee or the United States Trustee at
least five (5) days prior to the scheduled payment date, then the Company shall
withhold any such payments objected to in the written notice of objection until
such time as the parties resolve such objection(s).

2003/2004 TARGETS

The EBIT targets for each business unit and the overall Group performance have
been established for the Plan Year of July 1, 2003 to June 30, 2004 in
conjunction with the Creditors' Committee.

In the event of a Third Party Subsidiary Transaction which occurs prior to the
date of the payment of the Incentive Bonus, incentive plan payout targets will
be reevaluated with the Creditors' Committee and changed as necessary.

                                     Page 4
<PAGE>

AMENDMENT AND TERMINATION OF THE PLAN

The CEO may amend, modify or terminate this Plan, in whole or in part, at any
time and from time to time, including, without limitation, with respect to the
addition of Participants and in a manner consistent with the order of the United
States Bankruptcy Court authorizing the Company to implement the Plan; provided,
however, that the Company shall provide the Creditors' Committee with five
business days' prior written notice of any proposed termination, amendment or
modification of the Plan, and such proposed termination or amendment or
modification shall only take effect if the Creditors' Committee does not provide
a Notice of Objection to the Company. A Notice of Objection need only state that
the Creditors' Committee objects to the proposed termination, amendment or
modification. In the event the Creditors' Committee provides the Company with a
timely Notice of Objection, the Company may only implement the applicable
termination, amendment or modification in the event that either (i) the Company
and the Creditors' Committee consensually resolve the objection set forth in the
Notice of Objection or (ii) the Company obtains separate United States
Bankruptcy Court authorization to implement such proposed termination, amendment
or modification.

DEFINED TERMS

      "Base Salary" means an Employee's annual base salary.

      "Company" means Spiegel, Inc., a Delaware corporation.

      "CEO" means the Chief Executive Officer of the Company, or if there is no
      Chief Executive Officer of the Company, the Interim Chief Executive
      Officer and Chief Restructuring Officer of the Company.

      "Emergence Date" means the effective date of a POR of the Company (or, if
      applicable, any of its Significant Subsidiaries) that has been confirmed
      by the United States Bankruptcy Court in connection with the Company's
      reorganization pursuant to chapter 11 of the United States Bankruptcy
      Code.

      "Good Standing" means an employee of the Company or its Significant
      Subsidiaries who the CEO has determined is in Good Standing, in light of
      current and past performance (including, but not limited to, consideration
      of any actions described in the SEC Independent Examiner Report). If an
      employee who is otherwise entitled to a payment under the Plan has not
      affirmatively been determined to be in Good Standing at the time a payment
      under the Plan is due to him or her, then the Company may delay such
      payment until such time as the employee has affirmatively been determined
      to be in Good Standing.

      "Incapacity" means an employee's inability to perform all of his or her
      duties by reason of illness, physical or mental disability, or other
      similar incapacity, which inability has continued or reasonably could be
      expected to continue for more than ninety (90) days. All determinations of
      Incapacity under the Plan shall be made in accordance with applicable
      federal and state law and shall be made by the Company.

      "Incentive Bonus" means the amounts payable, if any, to a participant in
      accordance with this Plan.

      "Independent Examiner Report" means any report or reports submitted by the
      independent examiner appointed pursuant to the Partial Final Judgment and
      Order of Permanent Injunction and Other Equitable Relief, dated March 11,
      2003, entered by the District Court for

                                     Page 5
<PAGE>

      the Northern District of Illinois in United States Securities and Exchange
      Commission v. Spiegel, Inc., Case No. 03C 1685, as amended March 27, 2003.

      "Involuntary Termination" means the termination of employment with the
      Company and the Significant Subsidiaries for reasons other than
      resignation, death, Incapacity, retirement or Misconduct.

      "Involuntarily Terminated" means the Involuntary Termination of
      employment.

      "Misconduct" means: (i) a violation of the work rules of the employee's
      employer or willful breach of standard business conduct by the employee or
      the employee's intentional or willful failure to perform the duties and
      responsibilities of the employee's position, (ii) the willful engaging by
      the employee in any act or omission that is injurious to the business,
      reputation, character or community standing of the Company or its
      affiliates, (iii) the engaging by the employee in dishonest, fraudulent or
      unethical conduct, including, but not limited to, acts reported in the
      Independent Examiner Report or in other conduct involving moral turpitude
      to the extent that, in the reasonable judgment of the CEO, the employee's
      reputation and credibility no longer conform to the standards expected of
      the Company's employees, (iv) the employee's admission, confession, plea
      bargain to or conviction in a court of law of any crime or offense
      involving misuse or misappropriation of money or other property, fraud or
      moral turpitude, or a felony, or (v) a violation of any statutory or
      common law duty to the Company or its affiliates, including, but not
      limited to, the duty of loyalty.

      "Notice of Objection" means a written notification by the Creditors'
      Committee, stating their objection to the termination of, or any amendment
      or modification to, the Plan.

      "Plan Year" means July 1, 2003 through June 30, 2004.

      "POR" means a plan of reorganization of the Company (or, if applicable,
      any of its Significant Subsidiaries) that has been confirmed by the United
      States Bankruptcy Court in connection with the Company's reorganization
      pursuant to the Chapter 11 cases.

      "Significant Subsidiary" means Eddie Bauer, Inc., Spiegel Management
      Group, Inc., Distribution Fulfillment Services, Inc., Spiegel Group
      TeleServices, Inc., Spiegel Catalog, Inc., Ultimate Outlet, Inc. and
      Newport News, Inc.

      "Third Party Subsidiary Transaction" means (i) a sale to a third party of
      substantially all of the assets of a Significant Subsidiary or (ii) a sale
      to a third party of more than 50% of the outstanding equity ownership of a
      Significant Subsidiary in which the owners immediately prior to the date
      of such sale cease to own, directly or indirectly, an aggregate of more
      than 50% of the outstanding equity ownership of the surviving company.

                                     Page 6

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