Document:

exv10w26

Exhibit 10.26

COLLECTIVE BRANDS, INC.

2009 RESTRICTED STOCK AGREEMENT

     Pursuant to the terms and conditions of the 2006 Collective Brands, Inc.
Stock Incentive Plan (the “2006 Plan”), you have been granted the shares of
stock outlined below:

	 	 	 
	     Granted to:

	 	name
	 

	 	SSN
	 
	 	 
	     Grant Date:

	 	date
	 
	 	 
	     Shares Granted:

	 	shares
	 
	 	 
	     Expiration Date:

	 	expiration
	 
	 	 
	     Vesting Schedule:

	 	1/3 per year for 3 years on:
	 

	 	March 26, 2010
	 

	 	March 26, 2011
	 

	 	March 26, 2012

     Collective Brands, Inc. has caused this Agreement, which includes the Terms
and Conditions contained on the following pages (and by this reference
incorporates the terms of any Non-Competition and Company Work Product Agreement
entered into between the parties), to be executed in its corporate name and
Executive has executed the same in evidence of the Executive’s acceptance hereof
upon the terms and conditions herein set forth as of the grant date shown above.
By accepting this award, Executive agrees to conform to all terms and
conditions of this Agreement and the 2006 Plan.

Page 1 of 3 (RSA-US)

 

TERMS AND CONDITIONS

     The Committee under the 2006 Stock Incentive Plan (“2006 Plan”) of
Collective Brands, Inc., a Delaware corporation, has approved granting Executive
restricted stock on the terms and subject to the conditions set forth in this
Agreement.

     Therefore, the Company and Executive hereby agree as follows:

1. The Company hereby grants to Executive, in the aggregate, the number of shares of the presently authorized common stock of the Company shown on the
first page of this agreement (“Restricted Stock”), which shall be subject to the
restrictions and conditions set forth in the 2006 Plan and in this Agreement.

2. The Company shall hold the certificates for the Restricted Stock in custody
until the restrictions thereon shall lapse, at which time the Company shall
deliver the certificates for such shares to Executive or place the shares in an
account at the brokerage firm administering the plan, less any required
withholding.

3. The restrictions on the Restricted Stock are that the shares (i) may not be
sold, assigned, conveyed, transferred, pledged, hypothecated or otherwise
disposed of, and (ii) shall be returned to the Company forthwith, and all of the
Executive’s rights to such shares shall immediately terminate without any
payment or consideration by the Company regardless of any notice period or
period of pay in lieu of such notice required under local statute or at common
law, on the earlier of (a) the date established by the Company on which your
employment with the Company terminates, or (b) the date your employment with the
Company terminates, if Executive’s continuous employment with the Company or any
Subsidiary shall terminate for any reason except for Executive’s death,
termination for “good reason” (if applicable), or involuntary termination
without “cause”, as provided in Sections 7 and 8.

4. Executive agrees to abide by the terms of any Non-Competition and Company
Work Product Agreement entered into by the parties, the terms of which are
incorporated by reference into this Agreement. Executive further agrees that,
subject to Section 5 of this Agreement, (a) no later than the date(s) as of
which the restrictions on the Restricted Stock shall lapse with respect to all
or any of the shares of Restricted Stock covered by this Agreement, Executive
shall pay to the Company (in cash or shares of Company common stock whose Fair
Market Value on the date the Restricted Stock vests is equal to the amount of
Executive’s tax withholding liability) or make other arrangements satisfactory
to the Committee regarding payment of any Federal, state or local taxes of any
kind required by law to be withheld with respect to the shares of Restricted
Stock for which the restrictions shall lapse; and (b) the Company shall, to the
extent permitted by law, have the right to deduct from any payment of any kind
otherwise due to Executive any Federal, state or local taxes of any kind
required by law to be withheld with respect to the shares of Restricted Stock.

5. If Executive properly elects, within thirty (30) days of the Grant Date shown
above, to include in gross income for Federal income tax purposes an amount
equal to the fair market value of the shares of Restricted Stock granted on the
Grant Date, Executive shall pay to the Company, or make other arrangements
satisfactory to the Committee to pay to the Company in the year of such grant,
any Federal, state or local taxes required to be withheld with respect to such
 shares. If Executive fails to make such payments, the Company shall, to the
extent permitted by law, have the right to deduct from any payment of any kind
otherwise due to Executive any Federal, state or local taxes of any kind
required by law to be withheld with respect to such shares.

6. The restrictions on the Restricted Stock shall lapse on the date(s) and with
respect to the corresponding number of shares shown on the previous page,
subject to all the other terms and conditions of this agreement.

7. Notwithstanding the foregoing, if (i) Executive ceases to be an employee of
the Company by reason of death and (ii) Executive has been in the continuous
employment of the Company from the Grant Date shown above through the date of
death, then the restrictions shall lapse as to all shares of Restricted Stock on
the date of the Executive’s death.

8. Notwithstanding the foregoing, (a) if Executive is the Chief Executive
Officer of the Company on the Grant Date and Executive’s employment with the
Company is involuntarily terminated without “cause” (as that term is defined in
Executive’s employment agreement with the Company) or Executive terminates his
employment for “good reason” (as that term is defined in Executive’s employment
agreement with the Company), then all shares of Restricted Stock granted under
this Agreement that would have vested during the twenty four (24) month period
immediately following Executive’s termination, if Executive’s employment was not
terminated, shall immediately vest and (b) if Executive is a designated member
of the Company’s Executive Committee (other than the Chief Executive Officer) on
the Grant Date and Executive’s employment with the Company is involuntarily
terminated without “cause” (as that term is defined in Executive’s employment
agreement with the Company), then all shares of

Page 2 of 3 (RST-US)

 

 Restricted Stock granted under this Agreement that would have vested during the
twelve (12) month period immediately following Executive’s termination, if
Executive’s employment was not terminated, shall immediately vest.

9. If there is (i) any change in the capital structure of the Company through
merger, consolidations, reorganization, recapitalization, spin-off or otherwise,
(ii) any dividend on the Restricted Stock, payable in common stock of the
Company, or (iii) a stock split or a combination of shares, the Board shall make
appropriate adjustments in the number of shares relating to Restricted Stock as
it deems equitable, in its absolute discretion.

10. If a Change of Control as defined under the 2006 Plan occurs and Executive
is actively employed on the date of such event, then from and after such date,
the restrictions on all Restricted Stock covered by this Agreement shall
immediately lapse.

11. Nothing in this Agreement shall be deemed by implication or otherwise to
impose any limitation on any right of the Company to terminate the Executive’s
employment at any time, in the absence of a specific agreement to the contrary.

12. If the Company determines that the listing, registration or qualification of
any shares of stock is necessary or desirable as a condition of or in connection
with the grant of Restricted Stock made under this Agreement, then delivery of
certificates for such shares of Restricted Stock or placement of shares into an
account shall not be made until such listing, registration or qualification
shall have been completed.

13. So long as this Agreement shall remain in effect, the Company will furnish
to Executive, as and when available, a copy of any prospectus issued with
respect to the shares of stock covered hereby, and also copies of all material
hereafter distributed by the Company to its shareowners.

14. This Agreement shall be governed by the laws of the State of Delaware,
except that the terms of any Non-Competition & Work Product Agreement between
the parties that is incorporated by reference herein shall be governed by the
laws of the State of Kansas. This Agreement may not be modified except in
writing signed by both parties.

15. Executive acknowledges that Executive has received a copy of the 2006
Incentive Stock Plan and/or Plan Summary, as such Plan is in effect on the date
of this Agreement, has read and understands the terms of the 2006 Plan and of
this Agreement, and agrees to all the terms and conditions provided for in the
2006 Plan and in this Agreement.

16. Except as otherwise provided herein, or unless the context clearly indicates
otherwise, capitalized terms herein which are defined in the 2006 Plan have the
same definitions as provided in the 2006 Plan.

Page 3 of 3 (RST-US)exv10w27

Exhibit 10.27

COLLECTIVE BRANDS, INC. STOCK APPRECIATION RIGHT AGREEMENT

(FREESTANDING STOCK SETTLED SAR ONLY)

     Pursuant to the terms and conditions of the 2006 Collective Brands, Inc. Stock
Incentive Plan (the “2006 Plan”), you have been granted a Stock Appreciation Right (a “SAR”)
for the right and privilege to receive compensation, in stock, equal to the appreciation on
such numbers of shares of Stock identified and further outlined below:

	 	 	 
	     Granted to:

	 	name
	 

	 	SSN
	 
	 	 
	     Grant Date:

	 	date
	 
	 	 
	     SARs Granted:

	 	units
	 
	 	 
	     Exercise Price per SAR ($)

	 	price
	 
	 	 
	     Expiration Date:

	 	expiration
	 
	 	 
	     Vesting Schedule:

	 	1/3 per year for 3 years on:
	 

	 	March 26, 2010
	 

	 	March 26, 2011
	 

	 	March 26, 2012
	 
	 	 
	     Maximum Value Appreciation:

	 	If the Collective Brands stock price reaches three times
the grant price (200% appreciation) prior to the expiration of this grant, all
vested stock-settled SARs will automatically be exercised with no further
notice.

     Collective Brands, Inc. has caused this Agreement, which includes the Terms and
Conditions contained on the following pages (and by this reference incorporates the terms of
any Non-Competition and Company Work Product Agreement entered into between the parties), to
be executed in its corporate name and Executive has executed the same in evidence of the
Executive’s acceptance hereof upon the terms and conditions herein set forth as of the grant
date shown above. By accepting this award, Executive agrees to conform to all Terms and
Conditions of this Agreement and the Plan.

Page 1 of 8 (SSAR - PLG Annual)

 

Exhibit 10.27

TERMS AND CONDITIONS

     The Committee under the 2006 Stock Incentive Plan, as may be amended from time to time,
(the “2006 Plan” or “Plan”) of Collective Brands, Inc., a Delaware corporation (the “Company”) has
approved granting Executive stock appreciation rights settled in stock (referred to in this
Agreement as “SARs”) on the terms and subject to the conditions set forth in this Stock
Appreciation Right Agreement (the “Agreement”) and the 2006 Plan. Capitalized terms in this
Agreement shall have the meaning given to such terms in the 2006 Plan, unless otherwise specified
herein.

     Therefore, in consideration of the mutual covenants set forth below and the grant of SARs, the
Company and Executive hereby agree as follows:

1. The Company hereby grants to Executive, as of the Grant Date identified on page one of this
Agreement, the right and privilege to receive compensation, in stock, equal to the appreciation on
each of the shares of Stock identified on page one of this Agreement, from the Grant Date to the
date the SAR with respect to such shares of Stock is exercised. Subject to all other terms and
conditions in this Agreement, the SARs shall be irrevocable.

2. Subject to all the other terms and conditions in this Agreement and the Company’s policy on
Trading in Securities as in existence from time to time, the SARs may be exercised by Executive on
and after the dates and for the corresponding number of shares shown in the vesting schedule on the
first page of this Agreement; provided, however, the SARs may only be exercised on or before the
expiration date set forth on page one of this Agreement.

3. Subject to all the other terms and conditions in this Agreement, Executive may exercise SARs on
and after the appropriate vesting dates (and before a date or event of termination or cancellation)
in whole at any time, or in part from time to time, in each case to the extent vested. Executive
shall provide the Company or its designee with written or electronic notice (“Notice”) to exercise
such SARs in whole or in a specified part that certifies Executive is in compliance with the terms
and conditions of this Agreement and Section 5(m) of the 2006 Plan. This Notice will be considered
properly delivered, if received electronically, on the date received by the Compensation Department
of the Company or its designee. Upon exercise of the SAR, subject to the satisfaction of
applicable tax withholding, the Executive shall be entitled to receive payment from the Company in
an amount determined by multiplying (x) the positive difference between the Fair Market Value of a
share of Stock on the SAR exercise date at the time the exercise is executed (which ends at 3 p.m.
CST on the date of exercise) and the Exercise Price per share of Stock (as set forth on page one of
this Agreement) by (y) the number of shares of Stock with respect to which the SAR is exercised.
The payment upon a SAR exercise shall be solely in whole shares of Stock equal in value to the
amount of payment calculated immediately above. The Fair Market Value of any fractional shares
shall be credited to Executive’s brokerage account or otherwise paid by the Company.

	 	 	 	 	 	 	 
	4.

	 	A.
	 	(i)
	 	In no event may any SAR be exercised after the seventh (7th) anniversary
of the Grant Date shown on page one of this Agreement, and any SAR may be sooner terminated in
accordance with the provisions of the 2006 Plan and/or this Section 4.A.
	 
	 	 	 	 	 	 
	 

	 	 	 	(ii)
	 	If Executive ceases to be an employee of the Company, for any reason
other than death, Disability, Retirement, or termination (whether voluntary or
involuntary) other than for “Cause” (collectively referred to as a “Qualifying
Separation From Service”), then all outstanding SARs shall immediately terminate
regardless of any notice period or period of pay in lieu of such notice required
under local statute or at common law, on the earlier of (a) the date established by
the Company on which your employment with the Company

Page 2 of 8 (SSAR - PLG Annual)

 

Exhibit 10.27

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	terminates, or (b) the date your employment with the Company terminates.
Executive’s employment will not be deemed to have ceased solely by reason of a
leave of absence (a) during the first 90 consecutive days of a paid military,
sick, family or other bona fide paid leave of absence or (b) thereafter, if
Executive has a right of reemployment expressly guaranteed by either statute or
contract. In the event of such a leave of absence, the number of shares of Stock
for which SARs may be exercised during the periods described in clauses (a) and
(b) of the foregoing sentence shall be the number of shares of Stock for which
SARs were exercisable as of the date that the leave of absence began, subject to
the other terms and conditions of this Section 4.A. Termination for “Cause” shall
have the same meaning given to such term in the employment agreement, severance
agreement or similar agreement between the Company and Executive that is in effect
as of the Grant Date identified on page one of this Agreement or, if no such
agreement exists, the Company’s termination of Executive’s employment for:
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	(a)
	 	an act of fraud, embezzlement, theft, or any other violation of
the law (excluding minor traffic violations); or
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	(b)
	 	unauthorized disclosure of the Company’s Confidential
Information; or
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	(c)
	 	breach of any of the terms of the Plan or this Agreement; or
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	(d)
	 	abuse of Executive’s position for personal gain, or breach of
Executive’s duties to the Company; or
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	(e)
	 	engagement in any competitive activity which would constitute a
breach of Executive’s duty loyalty or of Executive’s obligations under the Plan
or this Agreement; or
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	(f)
	 	intentional breach of any Company policy, including those
contained in the Company’s Code of Ethics; or
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	(g)
	 	the conviction of Executive, or any entry of a plea of guilty or
nolo contender by Executive, to any crime involving moral turptitude; or
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	(h)
	 	the willful and continued failure by Executive to substantially
perform Executive’s duties with the Company (other than any such failure
resulting from Executive’s incapacity due to physical or mental illness); or
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	(i)
	 	the willful violation of applicable discrimination laws, the
Foreign Corrupt Practices Act, securities law or anti-trust statutes.
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	(iii)	 	If Executive experiences a Qualifying Separation From Service, the term
of any then outstanding SARs shall be for the period ending on the earliest of (a)
the date upon which the SARs would otherwise expire, (b) three years after
Executive’s Qualifying Separation From Service due to Retirement (for a reason other
than Disability), (c) ninety (90) days after Executive’s Qualifying Separation From
Service due to termination other than for Cause, or (d) twelve months after
Executive’s Qualifying Separation From Service due to Disability. In such event,
the number of shares for which SARs may be exercised after Executive’s Qualifying
Separation From Service (other than involuntary termination without “cause”) shall be the number of shares for which SARs were
exercisable as of the date of the Qualifying Separation From Service, subject to the
other

Page 3 of 8 (SSAR - PLG Annual)

 

Exhibit 10.27

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	terms and conditions of this Section 4.A. Notwithstanding the foregoing, (a)
if Executive is the Chief Executive Officer of the Company on the Grant Date and
Executive’s employment with the Company is involuntarily terminated without “cause”
(as that term is defined in Executive’s employment agreement with the Company) or
for “good reason” (as that term is defined in Executive’s employment agreement with
the Company), then all SARs granted under this Agreement that would have vested
during the twenty four (24) month period immediately following Executive’s
termination, if Executive’s employment was not terminated, shall immediately vest,
or (b) if Executive is a designated member of the Company’s Executive Committee
(other than the Chief Executive Officer of the Company) on the Grant Date and
Executive’s employment with the Company is involuntarily terminated without “cause”
(as that term is defined in Executive’s employment agreement with the Company), then
all SARs granted under this Agreement that would have vested during the twelve (12)
month period immediately following Executive’s termination, if Executive’s
employment was not terminated, shall immediately vest. SARs which were not
exercisable as of the date of Executive’s Qualifying Separation From Service shall
be cancelled as of that date and will no longer be deemed to be outstanding
thereafter. If Executive is terminated for Cause, all unexercised SARs shall lapse
immediately upon such termination.
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	(iv)
	 	(a)
	 	If Executive dies while in the employment of the Company without
having fully exercised any then outstanding SARs, the beneficiary designated by
Executive (or, in the absence of such designation, the executors or administrators
or legatees or distributees of Executive’s estate) shall have the right to exercise
such SARs, in whole or in part during the period ending on the earlier of (1) the
date upon which the SARs would otherwise expire or (2) three years after the date of
death. In that event, the number of shares for which SARs may be exercised after
such death shall be the number of shares for which SARs were outstanding on the date
of death (whether or not the SARs were already exercisable on the date of death).
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	(b)
	 	If Executive dies during any period following Executive’s
Retirement or Disability, without having fully exercised any then outstanding
SARs, the beneficiary designated by Executive (or, in the absence of such
designation, the executors or administrators or legatees or distributees of
Executive’s estate) shall have the right to exercise such SARs, in whole or in
part during the period ending on the earlier of (1) the date upon which the
SARs would otherwise expire or (2) three years after the date of death. In
that event, the number of shares for which SARs may be exercised after such
death shall be the number of shares for which SARs were exercisable as of the
date of the Retirement or Disability and remain outstanding on the date of
Executive’s death.
	 
	 	 	 	 	 	 	 	 
	 	 	 	 	(v)	 	Notwithstanding any other provision of this Agreement to the contrary:
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	(a)
	 	The Committee has the absolute right to cancel all
unexercised SARs hereunder at any time if the Executive’s Retirement was
without the Company’s consent or if, during Executive’s period of Retirement
or Disability, the Executive engages in employment or activities that, in the
sole opinion of the Committee, are contrary to the best interests of the
Company.
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	(b)
	 	The Committee has the absolute right to cancel all
unexercised SARs, and rescind any exercise of SARs, if, prior to any such
exercise or within six months after

Page 4 of 8 (SSAR - PLG Annual)

 

Exhibit 10.27

	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	Executive’s termination (1) one of the
events described in Section 5(m) of the 2006 Plan occurs (which events include
engaging in a “Competing Business” or divulging “Confidential Information” to
persons outside the Company or using such information in other than the
Company’s business), (2) upon the Company’s request and/or upon Executive’s
termination of employment (for any reason), Executive fails to return to the
Company all documents, records, notebooks, computer diskettes and tapes and
anything else containing the Company’s Confidential Information, including all
copies thereof, as well as any other Company property, in Executive’s
possession, custody or control, including deleting from Executive’s personal
computer(s) and other electronic storage medium any of the Company’s
proprietary or Confidential Information, (3) Executive fails to (i) notify and
provide the Company with the details of any unauthorized possession, use or
knowledge of any of the Company’s Confidential Information as soon as
Executive becomes aware of such circumstance, (ii) assist the Company in
preventing any reoccurrence of such possession, use or knowledge, or (iii)
cooperate with the Company in any litigation or other action to protect or
retrieve the Company’s Confidential Information, or (4) (i) Executive fails to
assign and transfer to the Company, the right, title and interest in and to
any and all inventions, discoveries, improvements, innovations, and/or designs
(the “Work Product”) conceived, discovered, developed, acquired or secured by
Executive, solely or jointly with others or otherwise, together with all
associated U.S. and foreign intellectual property rights (i.e., patents,
copyrights, trademarks or trade secrets) if such Work Product is related
directly or indirectly to the Company’s business or to the research or
development work of the Company, or (ii) upon discovery, development or
acquisition of any Work Product, Executive fails to notify the Company and/or
fails to execute and deliver to the Company, without further compensation,
such documents prepared by the Company as may be reasonable or necessary to
prepare or prosecute applications of the Work Product and to assign and
transfer to the Company all of Executive’s right, title and interest in and to
such Work Product and intellectual property rights thereof.
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	Within 10 days after receiving notice that the Committee has rescinded the exercise
of a SAR, Executive must either (i) pay to the Company an amount equal to the Fair
Market Value of the Stock, as of the date of exercise, for the Stock received as
compensation for the exercise and/or (ii) return to the Company the number of shares
of Stock received upon the exercise. The Company may deduct from any amounts the
Company owes to the Executive from time to time any amounts Executive owes the
Company pursuant to such rescission. Notwithstanding any other terms in this
Agreement, nothing in this Agreement shall be deemed or construed as extending the
seven-year period described in Section 4.A(i). This paragraph, 4.A.(v), shall not
apply to the Executive if the Executive is employed by, or acting as an advisor to, a
Competing Business solely in Executive’s capacity as an attorney.
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	For purposes of this Agreement, “Competing Business” includes, but is not limited to:
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	(1	)	 	 	any retail business with gross sales or revenue in the prior
fiscal year of more than $25 million (or which is a subsidiary, affiliate or
joint venture partner of a business with gross sales or revenue in the prior
fiscal year of more than $25 million) that sells footwear and/or accessories at
retail to consumers at price points competitive, or likely to be competitive, with the Company (e.g. including, without limitation, Wal-Mart

Page 5 of 8 (SSAR - PLG Annual)

 

Exhibit 10.27

	 	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	 	 	Stores, Inc.; Sears Holdings Corporation; Target Corporation; FootStar, Inc.; DSW
Inc.; ALDO U.S. Inc.; Ross Stores, Inc.; T.J. Maxx; Off-Broadway Shoe Warehouse;
Burlington Coat Factory Investment Holdings dba Burlington Coat Factory, Inc.;
Gennesco Inc.; Brown Shoe Company, Inc.; Shoe Carnival, Inc.; Kohl’s Corporation;
Liz Claiborne, Inc.; Big 5 Sporting Goods Corporation; J.C. Penney Company, Inc.;
Shoe Zone, Limited; Bata, Limited; and Zappos.com) within 10 miles of any Company
store or the store of any wholesale customer of the Company in the United States
or anywhere in any foreign country in which the Company has retail stores,
franchisees or wholesale customers;
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	(2	)	 	any franchising or wholesaling business with gross sales or
revenue in the prior fiscal year of more than $25 million (or which is a
subsidiary, affiliate or joint venture partner of a business with gross sales or
revenue in the prior fiscal year of more than $25 million) which sells footwear
at wholesale to franchisees, retailer or other footwear distributors located
within 10 miles of any Company store or the store of any wholesale customer of
the Company in the United States, or anywhere in any foreign country in which
the Company has retail stores, franchisees or wholesale customers;
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	(3	)	 	any footwear and/or accessory manufacturing business with gross
sales or revenue in the prior fiscal year of more than $25 million (or which is
a subsidiary, affiliate or joint venture partner of a business with gross sales
or revenue in the prior fiscal year of more than $25 million) that sells
footwear and/or accessories to retailers or other footwear distributors located
within 10 miles of any Company store or the store of any wholesale customer of
the Company in the United States, or anywhere in any foreign country in which
the Company has retail stores, franchisees or wholesale customers; (e.g.
including without limitation, Nine West Shoes, Dexter Shoe Company, Liz
Claiborne Inc., Wolverine World Wide, Inc., The Timberland Company, Nike, Inc.,
Reebok International Ltd., K-Swiss Inc., Adidas Group, Asics America
Corporation; FILA; New Balance and Puma); or
	 
	 	 	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	(4	)	 	any business that provides buying office services to any store or
group of stores or businesses referred to in (i), (ii) and (iii) above.
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	Executive acknowledges and agrees that Executive understands the non-compete and
non-solicitation restrictions contained in this Agreement and the 2006 Plan, that
such restrictions are reasonable and enforceable in view of, among other things: (1)
the market in which the Company operates its business, (2) the confidential
information to which Executive has access, (3) Executive’s training and background,
which are such that neither the Company nor Executive believe that the restraint will
pose an undue hardship on the Executive, (4) the fact that a Competing Business could
greatly benefit if it were to obtain the Company’s Confidential Information, (5) the
fact that the Company would not have adequate protection if Executive was permitted
to work for any Competing Business, since the Company would be unable to verify
whether its Confidential Information was being disclosed or used in a manner that is
damaging to the Company, (6) the limited duration of, and the limited activities
prohibited by, the restrictions contained in the Agreement and/or the Plan, and (7)
the Company’s legitimate interests in protecting its Confidential Information,
goodwill and relationships.
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	(vi)	 	If (a) a Change of Control (as described and defined in Section 11 of the
2006 Plan) occurs and (b) Executive is actively employed by the Company on the date
of such event,

Page 6 of 8 (SSAR - PLG Annual)

 

Exhibit 10.27

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	then from and after such date all SARs outstanding under this Agreement shall be
exercisable in full without regard to the provisions of Section 2 of this Agreement.

	 	 	 	 	 
	 

	 	B.
	 	Promptly following each exercise of a SAR, shares of Stock shall be delivered
to the Executive by the Company, subject to the provisions of Section 4.D.
	 
	 	 	 	 
	 

	 	C.
	 	Each SAR is personal to Executive, is not transferable by Executive (other
than, upon the death of Executive, by beneficiary designation, by last will and
testament or by laws of descent and distribution) and, during Executive’s lifetime, is
exercisable only by Executive.
	 
	 	 	 	 
	 

	 	D.
	 	The exercise of each SAR shall be subject to the condition that if at any
time the Company determines in its discretion that the satisfaction of withholding tax
or other withholding liabilities under any applicable U.S. Federal, state or foreign
law (“Withholding Obligation”), or that the listing, registration or qualification of
any shares otherwise deliverable upon such exercise upon any securities exchange or
under any applicable U.S. Federal, state or foreign law, or the consent or approval of
any regulatory body, is necessary or desirable as a condition of, or in connection
with, the exercise or the delivery or purchase of shares hereunder, then in any of
those events, the exercise shall not be effective unless that withholding, listing,
registration, qualification, consent or approval shall have been effected or obtained
free of any conditions not acceptable to the Company. Executive shall pay any
Withholding Obligation to the Company at the time of the exercise. Further, Executive
agrees that in the event Executive is required to pay an amount to Company pursuant to
the terms of Section 5(m) of the 2006 Plan or this Agreement, Executive agrees and
consents to a deduction from any amounts the Company owes Executive (including wages
or other compensation, fringe benefits, or vacation pay or other amounts owed by the
Company to Executive) to satisfy its obligation to the Company. Executive further
acknowledges that whether or not the Company elects to make any such set-off in whole
or in part, if the Company does not recover by means of set-off, the full amount owed
by the Executive, will immediately be due and payable to the Company.
	 
	 	 	 	 
	 

	 	E.
	 	If a circumstance listed under Section 10 of the 2006 Plan occurs, the
Committee shall make appropriate adjustments consistent with the terms of the 2006
Plan.
	 
	 	 	 	 
	 

	 	F.
	 	The employment relationship between Executive and the Company is at will and
nothing in this Agreement shall be deemed by implication or otherwise to impose any
limitation on any right of the Company or subsidiary to terminate the Executive’s
employment at any time for any reason or no reason, in the absence of a specific
agreement to the contrary.
	 
	 	 	 	 
	 

	 	G.
	 	This paragraph 4. G. shall only apply if Executive is a licensed attorney (in
any jurisdiction). If Executive is a licensed attorney, and taking into consideration
the Executive’s ethical duties and responsibilities as a licensed attorney (if so
licensed), the parties agree that nothing in this Agreement will prevent Executive
from providing legal advice or otherwise being engaged in the practice of law.
Executive, however, agrees not to breach any ethical obligations Executive has by
virtue of being, or having been, the Company’s corporate counsel (e.g., without
limitation maintaining the attorney/client confidentiality).
	 
	 	 	 	 
	 

	 	H.
	 	Any notice to be given under this Agreement by Executive shall be sent by
mail addressed to the Company for the attention of the Compensation Department, 3231
S.E. Sixth Avenue, Topeka, KS 66607, and any notice by the Company to Executive shall
be sent by mail addressed to the Executive at the address shown on the face of this
Agreement, or, if an address is not available, to Executive at Executive’s work
location. Either party may, by

Page 7 of 8 (SSAR - PLG Annual)

 

Exhibit 10.27

	 	 	 	 	 
	 

	 	 	 	notice given to the other in accordance with the provisions of this Section, change the
address to which subsequent notices shall be sent.
	 
	 	 	 	 
	 

	 	I.
	 	Executive recognizes that irreparable injury will result to the Company in
the event of a breach or threat of breach of any provision of this Agreement.
Therefore, Executive agrees that in the event of a breach or threat of a breach of any
provision of this Agreement, the Company will be entitled to, in addition to other
remedies and damages that maybe available to Company, an injunction to restrain any
such breach or threat of breach by Executive and all persons acting for and/or in
concert with Executive. If any dispute arises between the Company and Executive with
respect to any matter that is the subject of this Agreement, the Company or the
Executive, upon prevailing in such dispute, shall be entitled to recover from the
non-prevailing party all of the prevailing party’s costs and expenses including but
not limited to reasonable attorneys’ fees. Executive’s obligations and agreements set
forth in this Agreement shall survive any termination, whether initiated by the
Company or Executive, regardless of the reason, if any, for the termination.
	 
	 	 	 	 
	 

	 	J.
	 	This Agreement shall be governed by the laws of the State of Delaware, except
that the terms of Section 4A(v) of this Agreement and the terms of any Non-Competition
and Company Work Product Agreement entered into between the parties that is
incorporated by reference herein, shall be governed by the laws of the State of
Kansas. It may not be modified except in writing signed by both parties.
	 
	 	 	 	 
	 

	 	K.
	 	If any part of this Agreement is declared by any court or governmental
authority with competent jurisdiction to be unlawful or invalid, such unlawfulness or
invalidity shall not serve to invalidate any part of this Agreement not declared to be
unlawful or invalid. Any part so declared unlawful or invalid shall , if possible, be
construed in a manner which gives effect to the terms of such part to the fullest
extent possible while remaining lawful and valid.
	 
	 	 	 	 
	 

	 	L.
	 	Executive acknowledges that Executive has received a copy of the 2006 Plan
and/or Plan summary, as the Plan is in effect on the date of this Agreement, has read
and understands the terms of the 2006 Plan and of this Agreement, and agrees to all of
the terms and conditions provided for in the 2006 Plan and in this Agreement.
	 
	 	 	 	 
	 

	 	M.
	 	So long as this Agreement remains in effect, the Company will furnish to
Executive, as and when available, a copy of each prospectus issued with respect to the
shares of stock covered hereby, and also copies of all material hereafter distributed
by the Company to its shareowners.
	 
	 	 	 	 
	 

	 	N.
	 	Except as otherwise provided in this Agreement, or unless the context clearly
indicates otherwise, capitalized terms herein which are defined in the 2006 Plan have
the same definitions as provided in the 2006 Plan.

Page 8 of 8 (SSAR - PLG Annual)

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