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REVISED |
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EXHIBIT A |
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to |
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EMPLOYMENT AGREEMENT |
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Dated as of March 1, 2003 between |
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TERRY J. LUNDGREN |
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AND |
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FEDERATED CORPORATE SERVIES, INC. |
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Name: |
Terry J. Lundgren |
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End of Term: |
February 28, 2007 |
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Revised Annual Base Compensation: |
$1,255,000 |
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Effective Date of Revision: |
July 1, 2004 |
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Annual Bonus: |
Commencing in respect of the 2003 fiscal year, the annual bonus payable (if any) under the terms of the 1992 Incentive Bonus Plan (as such may be amended from time to time) of Federated Department Stores, Inc. ("Federated") will be based on performance goals established for the senior executives of the Employer on an annual basis by the Board of Directors of Federated or a Committee thereof, with the amount of bonus equal to a sliding percent of Employee's annual base compensation in effect as of the last day of the performance period based on performance against the targeted annual goals. |
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Such sliding percent, and the targeted annual goals in respect of fiscal 2003, are set out in Schedule 1 hereto. |
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TERRY J. LUNDGREN |
FEDERATED CORPORATE SERVICES, INC. |
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/s/ Terry J. Lundgren |
/s/ Dennis J. Broderick |
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Dennis J. Broderick |
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President |
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SCHEDULE 1 TO EXHIBIT A TO EMPLOYMENT AGREEMENT |
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Point at which incremental |
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Corporate EBIT $ |
90% of plan |
95% of plan |
100% of plan |
110% of plan |
Over 110% of plan |
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36% of salary |
54% of salary |
90% of salary |
180% of salary |
9% of salary for each 1% of EBIT over plan |
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Corporate Sales $ |
0 |
0 |
100% of plan |
101% of plan |
Over 101% of plan |
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30% of salary |
60% of salary |
60% of salary |
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Corporate Cash Flow |
$50 million below 2003 plan |
$25 million below 2003 plan |
100% of 2003 plan |
$150 million above 2003 plan |
$150 million plus above 2003 plan |
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12% of salary |
18% of salary |
30% of salary |
60% of salary |
60% of salary |
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Total |
48% of salary |
72% of salary |
150% of salary |
300% of salary |
300% of salary plus no limit on corporate EBIT $ bonus (1) |
(1) Total bonus payment may not exceed $7 million.