RADIOSHACK CORPORATION
                        BONUS PLAN FOR EXECUTIVE OFFICERS
 
 
INTRODUCTION
 
The RadioShack  Bonus Plan for Executive  Officers  ("Plan") is a bonus plan for
eligible  employees of RadioShack and its subsidiaries.  The Plan is intended to
provide  performance-based cash incentive opportunities to executive officers of
the Company and its subsidiaries.  Plan payments, if any, will be conditioned on
attainment  of one or more  Performance  Measures  in an  annual  period.  It is
intended that payments made to certain  executive  employees under the Plan will
qualify as performance-based  compensation that is exempt from the limitation on
deductions  imposed by Section 162(m) of the Internal  Revenue Code and that the
Plan will be construed, applied and administered accordingly.
 
This Plan constitutes the annual incentive element of the RadioShack 2004 Annual
and Long-Term Incentive  Compensation Plan approved by the Committee on February
20, 2004, and by the Company's stockholders on May 20, 2004.
 
 
I.  PURPOSE
 
The purpose of the Plan is to permit the Company to (i)  attract,  motivate  and
retain highly qualified employees,  (ii) obtain from executive officers the best
possible  performance,  (iii)  establish  performance  goals  that  support  the
Company's  long-term business  strategies,  and (iv) provide  consistency in and
alignment  with the  Company's  approach  to  performance-based  pay and overall
executive compensation strategy.
 
 
II.  DEFINITIONS
 
For purposes of the Plan, the following terms shall have the following meanings:
 
A. ANNUAL INCENTIVE COMPENSATION AWARD. Any cash-based award paid pursuant to
the Plan.
 
B. AWARD PERIOD. An award period under the Plan shall be one fiscal year of the
Company.
 
C. BOARD OF DIRECTORS. The Board of Directors of the Company.
 
D. CHANGE IN CONTROL. The occurrence during the term of the Plan and during the
Award Period of any Annual Incentive Compensation Award of:
 
         (a) An acquisition (other than directly from the Company) of any voting
     securities of the Company (the "Voting Securities") by any "Person" (as the
     term person is used for purposes of Section 13(d) or 14(d) of the
     Securities Exchange Act of 1934, as amended (the "1934 Act")) immediately
     after which such Person has "Beneficial Ownership" (within the meaning of
     Rule 13d-3 promulgated under the 1934 Act) of fifteen percent (15%) or more
     of the combined voting power of the Company's then outstanding Voting
     Securities; provided, however, in determining whether a Change in Control
     has occurred, Voting Securities which are acquired in a "Non-Control
     Acquisition" (as hereinafter defined) shall not constitute an acquisition
     which would cause a Change in Control. A "Non-Control Acquisition" shall
     mean an acquisition by (i) an employee benefit plan (or a trust forming a
     part thereof) maintained by (A) the Company or (B) any corporation or other
     Person of which a majority of its voting power or its voting equity
     securities or equity interest is owned, directly or indirectly, by the
     Company (for purposes of this definition, a "Controlled Subsidiary"), (ii)
     the Company or its Controlled Subsidiaries, or (iii) any Person in
     connection with a "Non-Control Transaction" (as hereinafter defined);
 
 
         (b) The individuals who, as of the Effective Date, are members of the
     Board (the "Incumbent Board"), cease for any reason to constitute at least
     two-thirds of the Board; provided, however, that if the election, or
     nomination for election by the Company's stockholders, of any new director
     was approved by a vote of at least two-thirds of the Incumbent Board, such
     new director shall, for purposes of this Plan, be considered as a member of
     the Incumbent Board; provided further, however, that no individual shall be
     considered a member of the Incumbent Board if such individual initially
     assumed office as a result of either an actual or threatened "Election
     Contest" (as described in Rule 14a-11 promulgated under the 1934 Act) or
     other actual or threatened solicitation of proxies or consents by or on
     behalf of a Person other than the Board (a "Proxy Contest") including by
     reason of any agreement intended to avoid or settle any Election Contest or
     Proxy Contest; or
 
 
         (c) Approval by stockholders of the Company of:
 
                  (i) A merger, consolidation or reorganization involving the
                      Company, unless
 
 
 
                     (A) the stockholders of the Company, immediately before
                  such merger, consolidation or reorganization, own, directly or
                  indirectly immediately following such merger, consolidation or
                  reorganization, at least sixty percent (60%)of the combined
                  voting power of the outstanding voting securities of the
                  corporation resulting from such merger or consolidation or
                  reorganization (the "Surviving Corporation") in substantially
                  the same proportion as their ownership of the Voting
                  Securities immediately before such merger, consolidation or
                  reorganization,
 
 
 
                     (B) the individuals who were members of the Incumbent
                  Board immediately prior to the execution of the agreement
                  providing for such merger, consolidation or reorganization
                  constitute at least two-thirds of the members of the board of
                  directors of the Surviving Corporation, and
 
 
 
                     (C) no Person other than the Company, any Controlled
                  Subsidiary, any employee benefit plan (or any trust forming a
                  part thereof) maintained by the Company, the Surviving
                  Corporation, or any Controlled Subsidiary, or any Person who,
                  immediately prior to such merger, consolidation or
                  reorganization had Beneficial Ownership of fifteen percent
                  (15%) or more of the then outstanding Voting Securities has
                  Beneficial Ownership of fifteen percent (15%) or more of the
                  combined voting power of the Surviving Corporation's then
                  outstanding voting securities.
 
 
 
                  For purposes hereof, a transaction described in clauses (A)
                  through (C) shall herein be referred to as a "Non-Control
                  Transaction."
 
 
 
                  (ii) A complete liquidation or dissolution of the Company; or
 
 
 
                  (iii) An agreement for the sale or other disposition of all or
         substantially all of the assets of the Company to any Person (other
         than a transfer to a Controlled Subsidiary).
 
 
 
Notwithstanding the foregoing,  a Change in Control shall not be deemed to occur
solely because any Person (the "Subject Person") acquired  Beneficial  Ownership
of more than the  permitted  amount of the  outstanding  Voting  Securities as a
result of the acquisition of Voting Securities by the Company which, by reducing
the number of Voting Securities  outstanding,  increases the proportional number
of shares Beneficially Owned by the Subject Person, provided that if a Change in
Control would occur (but for the operation of this  sentence) as a result of the
acquisition  of  Voting  Securities  by  the  Company,   and  after  such  share
acquisition by the Company,  the Subject Person becomes the Beneficial  Owner of
any  additional  Voting  Securities  which  increases the percentage of the then
outstanding Voting Securities  Beneficially Owned by the Subject Person,  then a
Change in Control shall occur.
 
E. COMMITTEE. The Management Development and Compensation Committee of the Board
of Directors of the Company or any successor committee thereto.
 
F. COMPANY. RadioShack Corporation, a Delaware corporation.
 
G. PARTICIPANT. An executive officer of the Company or one or more of its
subsidiaries, who is designated by the Committee to participate in the Plan.
 
H. PAYMENT DATE. The date prescribed for payment with respect to an Award
Period.
 
I. PERFORMANCE MEASURES. The performance measures established with respect to
Annual Incentive Compensation Awards pursuant to Section V of the Plan.
 
J. RETIREMENT. A Participant's voluntary termination of employment with the
Company or any of its subsidiaries on or after attainment of age 55.
 
 
III. EFFECTIVE DATE AND AWARD GRANT PERIOD
 
The Plan has been  adopted  effective  as of  January  1, 2004  (the  "Effective
Date"). Annual Incentive Compensation Awards may be granted through December 31,
2008.
<PAGE>
 
 
IV. DETERMINATION OF AMOUNTS OF AND ELIGIBILITY FOR ANNUAL INCENTIVE
COMPENSATION AWARDS
 
A. Participants will be eligible to receive Annual Incentive Compensation Awards
conditioned  on  achievement  of  Performance  Measure(s)  as  approved  by  the
Committee.
 
B. If the  Performance  Measures  are not  achieved,  then no  Annual  Incentive
Compensation  Awards  will  be paid  to  Participants  under  the  Plan.  If the
Performance  Measures are achieved,  then Annual Incentive  Compensation  Awards
will be paid in amounts  and at levels  determined  by the  Committee  under the
Plan. The maximum Annual  Incentive  Compensation  Award that can be paid to any
one individual with respect to any Award Period is $5,000,000.00.
 
C. Annual  Incentive  Compensation  Awards may be paid  following the end of the
Award Period to which they relate;  provided,  however, that no Annual Incentive
Compensation  Awards shall be paid to Participants prior to the certification in
writing by the Committee  that the  Performance  Measures have been achieved for
the relevant Award Period.
 
D.  The  Committee  will  determine  the  final  amounts  of  Annual   Incentive
Compensation  Awards  that  may be made to  Participants.  Such  determinations,
except  in the case of the  Annual  Incentive  Compensation  Award for the Chief
Executive  Officer,  shall be made after considering the  recommendations of the
Chief  Executive  Officer  and such other  matters as the  Committee  shall deem
relevant.  Such  determination in the case of the Annual Incentive  Compensation
Award  for the  Chief  Executive  Officer  shall be made by the  Committee.  The
Committee may, at any time or from time to time,  exercise  discretion to reduce
the amount of, or eliminate,  Annual Incentive  Compensation Awards. In no event
may the amount of the Annual Incentive Compensation Awards be increased.
 
 
V. PERFORMANCE MEASURES
 
A.  Payment  of  Annual  Incentive  Compensation  Awards is  conditioned  on the
attainment of Performance Measures as established by the Committee.  Performance
Measures  applicable to Award Periods for  Participants  shall be established in
writing at the beginning of each year. The Committee will select the Performance
Measures from among the following performance criteria:
 
        1. earnings per share,
        2. operating income (before income taxes),
        3. gross profit,
        4. sales,
        5. EBITDA,
        6. free cash flow,
        7. return on invested capital,
        8. selling, general and administrative expenses,
        9. stock price compared to a peer group of companies, and
       10. stock price.
 
B. Further, in establishing Performance Measures for Participants, the Committee
in its sole and  absolute  discretion  may  include  or  exclude at any time the
impact of specific  objective  events that are determined to be extraordinary or
unusual in nature,  infrequent  in  occurrence  or related to the  disposal of a
segment  of a  business  or to a  change  of  accounting  principles;  provided,
however,  such inclusion or exclusion of specific  objective events shall not be
done in such a manner that would  result in the loss of an  otherwise  available
exemption under Section 162(m).
 
C. The Committee may impose additional Performance Measures that have the effect
of  reducing  awards.  It also may modify  Performance  Measures  applicable  to
Participants  that  have the  effect  of  reducing  awards.  It also may  modify
Performance  Measures  applicable to Participants,  except in the case where the
action  would  result  in the loss of an  otherwise  available  exemption  under
Section  162(m),  if it  determines  that the  Performance  Measures have become
unsuitable as a result of certain events.
 
 
VI. FORM OF ANNUAL INCENTIVE COMPENSATION AWARDS
 
Annual Incentive Compensation Awards shall be paid in cash.
 
 
VII.  PAYMENT OF ANNUAL INCENTIVE COMPENSATION AWARDS
 
When an Annual Incentive Compensation Award is made, the Company shall cause the
cash to be paid to the  Participant  to whom  the  award  is made at the time or
times specified by the Committee, or, if no time or times are specified, as soon
as  practicable  after the award is made;  provided,  however,  that in no event
shall such payment occur more than three months after the Award Period ends.
 
 
VIII.  CHANGE IN CONTROL
 
In connection with any actual or potential Change in Control, the Committee will
take  all  such  actions  hereunder  as it  may  determine  to be  necessary  or
appropriate  to  treat  Participants  equitably  hereunder,   including  without
limitation the modification or waiver of applicable Performance Measures,  Award
Periods or Annual Incentive  Compensation  Awards,  notwithstanding the terms of
any initial Annual  Incentive  Compensation  Award,  and whether to establish or
fund a trust or other arrangement intended to secure the payment of such Awards.
 
 
IX. TERMINATION OF SERVICE OR DEMOTION
 
A. If a Participant  terminates employment with the Company and its subsidiaries
before the Payment Date due to death or  Retirement,  the  Participant's  Annual
Incentive Compensation Awards for the Award Period in effect at the time of such
termination  of service will be prorated on the basis of the ratio of the number
of days of  participation  during each such Award Period to the aggregate number
of days in each such Award  Period.  Payment of such prorated  Annual  Incentive
Compensation Awards will occur at the end of the applicable Award Periods on the
dates  that all other  Participants  receive  payment of such  Annual  Incentive
Compensation Awards.
 
B.  If a  Participant  voluntarily  terminates  his  or her  employment  or if a
Participant's  employment with the Company and its subsidiaries is terminated by
the  Company or any such  subsidiary  prior to the end of an Award  Period,  the
Participant will not be entitled to any Annual Incentive  Compensation Award for
any such Award  Period,  except as otherwise  provided in an Agreement  with the
Company or in the sole discretion of the Company.
 
C. If, prior to the Payment Date, a Participant's duties change prior to the end
of an Award Period,  the  Participant's  rights to receive any Annual  Incentive
Compensation  for  any  such  Award  Period  will  be  subject  to  revision  or
termination  by the  Committee,  provided that no change will be made that would
cause the award to fail to meet the requirements for deductibility under Section
162(m).
 
 
X. SPECIAL AWARDS AND OTHER PLANS
 
A.  Nothing  contained  in the Plan  shall  prohibit  the  Company or any of its
subsidiaries from granting special performance or recognition awards, under such
conditions  and in such form and manner as it sees fit, to employees  (including
Participants) for meritorious service of any nature.
 
B. In addition,  nothing contained in the Plan shall prohibit the Company or any
of  its  subsidiaries  from  establishing  other  incentive  compensation  plans
providing  for the payment of incentive  compensation  to  employees  (including
Participants).
 
 
XI. ADMINISTRATION, AMENDMENT AND INTERPRETATION OF THE PLAN
 
A. The Board of  Directors  or the  Committee  shall have the right to amend the
Plan from time to time; provided,  however,  that any amendment that changes the
class of eligible  Participants,  modifies the Performance Measures or increases
the maximum Annual Incentive  Compensation  Award a Participant may receive must
be approved by the stockholders to the extent necessary for the Plan to continue
to meet the  requirements  of  Section  162(m).  The Board of  Directors  or the
Committee  shall have the right to  terminate  the Plan at any time or to direct
the discontinuance of Annual Incentive Compensation Awards either temporarily or
permanently. Notwithstanding the foregoing, in the event this Plan is terminated
before the last day of an Award Period,  Annual  Incentive  Compensation  Awards
payable for such Award  Period will be prorated on the basis of the ratio of the
number of days in such Award Period prior to such  termination  to the aggregate
number of days in such Award  Period and will be paid only after the end of such
Award Period,  which will be deemed to continue until the expiration  thereof as
if this Plan had not been terminated.
 
B. This Plan will be  administered  by the  Committee  in its sole and  absolute
discretion,  and the Committee may interpret the Plan and  establish,  amend and
rescind any rules  relating to the Plan.  The  decision  of the  Committee  with
respect  to any  questions  arising in  connection  with the  administration  or
interpretation of the Plan shall be final, conclusive and binding.
 
C. The Committee  may delegate its  responsibilities  under the Plan;  provided,
however,  that the  Committee  shall not  delegate  its  authority to select the
Participants,  establish  Performance Measures, or certify that these goals have
been achieved,  to the extent  necessary to satisfy the  requirements of Section
162(m).
 
 
XII. MISCELLANEOUS
 
A. All expenses and costs in connection  with the operation of the Plan shall be
borne by the Company.
 
B. All  Annual  Incentive  Compensation  Awards  under the Plan are  subject  to
applicable withholding for federal, state and local taxes.
 
C.  Unless  otherwise   determined  by  the  Committee,   all  Annual  Incentive
Compensation  Awards will be paid from the Company's general assets, and nothing
contained  in this Plan will  require  the Company to set aside or hold in trust
any funds for the  benefit  of any  Participant,  who will have the  status of a
general unsecured creditor of the Company.
 
D. This Plan will not confer  upon any  Participant  any right  with  respect to
continuance  of employment or other service with the Company or any  subsidiary,
nor will it  interfere  in any way with any right the Company or any  subsidiary
would  otherwise  have to  terminate  or modify the terms of such  Participant's
employment or other service at any time.
 
E. Except as  otherwise  provided in this Plan,  no right or benefit  under this
Plan will be subject to  anticipation,  alienation,  sale,  assignment,  pledge,
encumbrance,  or charge, and any attempt to anticipate,  alienate, sell, assign,
pledge, encumber, or charge such right or benefit will be void. No such right or
benefit  will in any manner be liable for or subject to the debts,  liabilities,
or torts of a Participant.
 
F. If any  provision  in this Plan is held to be  invalid or  unenforceable,  no
other provision of this Plan will be affected thereby.
 
G. This Plan will be governed by and  construed in  accordance  with  applicable
United States  federal law and, to the extent not preempted by such federal law,
in accordance with the laws of the State of Texas,  without giving effect to the
principles of conflict of laws thereof.
 
<PAGE>
 
 
                                                                    Exhibit 10.2
 
                      Description of 2004 Annual Incentive
                Bonus Performance Measures for Executive Officers
 
On February 20, 2004,  the  Compensation  Committee  established  the  following
performance  measures for the top five executive officers,  other than for David
P. Johnson:
 
   o   50% of the performance measure is based on the increase in RadioShack's
       operating income over the previous year,
 
   o   30% of the performance measure is based on the increase in RadioShack's
       earnings per share over the previous year, and
 
   o   20% of the performance measure is based on the increase in RadioShack's
       growth in sales over the previous year.
 
All  of  Mr.  Johnson's  performance  measure  was  based  on  the  increase  in
RadioShack's operating income over the previous year.
 
<PAGE>
 
 
                                                                    Exhibit 10.3
 
                      Description of 2005 Annual Incentive
                Bonus Performance Measures for Executive Officers
 
On February 24, 2005,  the  Compensation  Committee  established  the  following
performance measures for the top five executive officers:
 
   o   50% of the performance measure is based on the increase in RadioShack's
       operating income over the previous year,
 
   o   25% of the performance measure is based on the increase in RadioShack's
       earnings per share over the previous year, and
 
   o   25% of the performance measure is based on the increase in RadioShack's
       growth in sales over the previous year.
 
<PAGE>
 
 
                                                                    Exhibit 10.4
 
                             RADIOSHACK CORPORATION
                            LONG-TERM INCENTIVE PLAN
 
 
INTRODUCTION
 
The RadioShack  Long-term  Incentive Plan ("Plan") is a long-term incentive plan
for eligible employees of RadioShack and its subsidiaries.  The Plan is intended
to provide  performance-based cash incentive opportunities to executive officers
of the Company and its subsidiaries.  Plan payments, if any, will be conditioned
on attainment of one or more Performance  Measures for one or more Award Periods
as established  by the  Committee.  It is intended that payments made to certain
executive   employees   under  the  Plan  will   qualify  as   performance-based
compensation that is exempt from the limitation on deductions imposed by Section
162(m) of the Internal Revenue Code and that the Plan will be construed, applied
and administered accordingly.
 
This Plan  constitutes  the long-term  incentive  element of the RadioShack 2004
Annual and Long-Term  Incentive  Compensation  Plan approved by the Committee on
February 20, 2004, and by the Company's stockholders on May 20, 2004.
 
 
I.  PURPOSE
 
The purpose of the Plan is to permit the Company to (i)  attract,  motivate  and
retain highly qualified employees,  (ii) obtain from executive officers the best
possible  performance,  (iii)  establish  performance  goals  that  support  the
Company's  long-term business  strategies,  and (iv) provide  consistency in and
alignment  with the  Company's  approach  to  performance-based  pay and overall
executive compensation strategy.
 
 
II.  DEFINITIONS
 
For purposes of the Plan, the following terms shall have the following meanings:
 
A.  AWARD  PERIOD.  An award  period  under the Plan  shall be a period of three
consecutive fiscal years of the Company.
 
B. BOARD OF DIRECTORS. The Board of Directors of the Company.
 
C. CHANGE IN CONTROL.  The occurrence during the term of the Plan and during the
Award Period of any Project Incentive Compensation Award of:
 
         (a) An acquisition (other than directly from the Company) of any voting
     securities of the Company (the "Voting Securities") by any "Person" (as the
     term person is used for purposes of Section 13(d) or 14(d) of the
     Securities Exchange Act of 1934, as amended (the "1934 Act")) immediately
     after which such Person has "Beneficial Ownership" (within the meaning of
     Rule 13d-3 promulgated under the 1934 Act) of fifteen percent (15%) or more
     of the combined voting power of the Company's then outstanding Voting
     Securities; provided, however, in determining whether a Change in Control
     has occurred, Voting Securities which are acquired in a "Non-Control
     Acquisition" (as hereinafter defined) shall not constitute an acquisition
     which would cause a Change in Control. A "Non-Control Acquisition" shall
     mean an acquisition by (i) an employee benefit plan (or a trust forming a
     part thereof) maintained by (A) the Company or (B) any corporation or other
     Person of which a majority of its voting power or its voting equity
     securities or equity interest is owned, directly or indirectly, by the
     Company (for purposes of this definition, a "Controlled Subsidiary"), (ii)
     the Company or its Controlled Subsidiaries, or (iii) any Person in
     connection with a "Non-Control Transaction" (as hereinafter defined);
 
 
         (b) The individuals who, as of the Effective Date, are members of the
     Board (the "Incumbent Board"), cease for any reason to constitute at least
     two-thirds of the Board; provided, however, that if the election, or
     nomination for election by the Company's stockholders, of any new director
     was approved by a vote of at least two-thirds of the Incumbent Board, such
     new director shall, for purposes of this Plan, be considered as a member of
     the Incumbent Board; provided further, however, that no individual shall be
     considered a member of the Incumbent Board if such individual initially
     assumed office as a result of either an actual or threatened "Election
     Contest" (as described in Rule 14a-11 promulgated under the 1934 Act) or
     other actual or threatened solicitation of proxies or consents by or on
     behalf of a Person other than the Board (a "Proxy Contest") including by
     reason of any agreement intended to avoid or settle any Election Contest or
     Proxy Contest; or
 
 
         (c) Approval by stockholders of the Company of:
 
                  (i) A merger, consolidation or reorganization involving the
                      Company, unless
 
 
 
                     (A) the stockholders of the Company, immediately
                  before such merger, consolidation or reorganization, own,
                  directly or indirectly immediately following such merger,
                  consolidation or reorganization, at least sixty percent (60%)
                  of the combined voting power of the outstanding voting
                  securities of the corporation resulting from such merger or
                  consolidation or reorganization (the "Surviving Corporation")
                  in substantially the same proportion as their ownership of the
                  Voting Securities immediately before such merger,
                  consolidation or reorganization,
 
 
 
                     (B) the individuals who were members of the Incumbent
                  Board immediately prior to the execution of the agreement
                  providing for such merger, consolidation or reorganization
                  constitute at least two-thirds of the members of the board of
                  directors of the Surviving Corporation, and
 
 
 
                     (C) no Person other than the Company, any Controlled
                  Subsidiary, any employee benefit plan (or any trust forming a
                  part thereof) maintained by the Company, the Surviving
                  Corporation, or any Controlled Subsidiary, or any Person who,
                  immediately prior to such merger, consolidation or
                  reorganization had Beneficial Ownership of fifteen percent
                  (15%) or more of the then outstanding Voting Securities has
                  Beneficial Ownership of fifteen percent (15%) or more of the
                  combined voting power of the Surviving Corporation's then
                  outstanding voting securities.
 
 
 
                  For purposes hereof, a transaction described in clauses (A)
                  through (C) shall herein be referred to as a "Non-Control
                  Transaction."
 
 
 
                  (ii) A complete liquidation or dissolution of the Company; or
 
 
 
                  (iii) An agreement for the sale or other disposition of all or
         substantially all of the assets of the Company to any Person (other
         than a transfer to a Controlled Subsidiary).
 
 
 
Notwithstanding the foregoing,  a Change in Control shall not be deemed to occur
solely because any Person (the "Subject Person") acquired  Beneficial  Ownership
of more than the  permitted  amount of the  outstanding  Voting  Securities as a
result of the acquisition of Voting Securities by the Company which, by reducing
the number of Voting Securities  outstanding,  increases the proportional number
of shares Beneficially Owned by the Subject Person, provided that if a Change in
Control would occur (but for the operation of this  sentence) as a result of the
acquisition  of  Voting  Securities  by  the  Company,   and  after  such  share
acquisition by the Company,  the Subject Person becomes the Beneficial  Owner of
any  additional  Voting  Securities  which  increases the percentage of the then
outstanding Voting Securities  Beneficially Owned by the Subject Person,  then a
Change in Control shall occur.
 
D. COMMITTEE. The Management Development and Compensation Committee of the Board
of Directors of the Company or any successor committee thereto.
 
E. COMPANY. RadioShack Corporation, a Delaware corporation.
 
F. LONG-TERM INCENTIVE COMPENSATION AWARD. Any cash-based award paid pursuant to
the Plan.
 
G.  PARTICIPANT.  An  executive  officer  of the  Company  or one or more of its
subsidiaries, who is designated by the Committee to participate in the Plan.
 
H.  PAYMENT  DATE.  The date  prescribed  for payment  with  respect to an Award
Period.
 
I. PERFORMANCE  MEASURES.  The performance  measures established with respect to
Long-term Incentive Compensation Awards pursuant to Section V of the Plan.
 
J.  RETIREMENT.  A  Participant's  voluntary  termination of employment with the
Company or any of its subsidiaries on or after attainment of age 55.
 
 
III. EFFECTIVE DATE AND AWARD GRANT PERIOD
 
The Plan has been  adopted  effective  as of  January  1, 2004  (the  "Effective
Date").  Long-term Incentive Compensation Awards may be granted through December
31, 2008.
<PAGE>
 
 
IV. DETERMINATION OF AMOUNTS OF AND ELIGIBILITY FOR LONG-TERM INCENTIVE
COMPENSATION AWARDS
 
A.  Participants will be eligible to receive  Long-term  Incentive  Compensation
Awards  conditioned on achievement of Performance  Measure(s) as approved by the
Committee.
 
B. If the  Performance  Measures are not achieved,  then no Long-term  Incentive
Compensation  Awards  will  be paid  to  Participants  under  the  Plan.  If the
Performance Measures are achieved,  then Long-term Incentive Compensation Awards
will be paid in amounts  and at levels  determined  by the  Committee  under the
Plan. The maximum Long-term Incentive Compensation Award that can be paid to any
one individual with respect to any Award Period is $3,000,000.00.
 
C. Long-term Incentive  Compensation Awards may be paid following the end of the
Award  Period  to  which  they  relate;  provided,  however,  that no  Long-term
Incentive  Compensation  Awards  shall  be paid  to  Participants  prior  to the
certification  in writing by the Committee  that the  Performance  Measures have
been achieved for the relevant Award Period.
 
D. The  Committee  will  determine  the final  amounts  of  Long-term  Incentive
Compensation  Awards  that  may be made to  Participants.  Such  determinations,
except in the case of the Long-term  Incentive  Compensation Award for the Chief
Executive  Officer,  shall be made after considering the  recommendations of the
Chief  Executive  Officer  and such other  matters as the  Committee  shall deem
relevant. Such determination in the case of the Long-term Incentive Compensation
Award  for the  Chief  Executive  Officer  shall be made by the  Committee.  The
Committee may, at any time or from time to time,  exercise  discretion to reduce
the amount of, or eliminate,  Long-term  Incentive  Compensation  Awards.  In no
event  may  the  amount  of  the  Long-term  Incentive  Compensation  Awards  be
increased.
 
 
V. PERFORMANCE MEASURES
 
B. Payment of Long-term  Incentive  Compensation  Awards is  conditioned  on the
attainment of Performance Measures as established by the Committee.  Performance
Measures  applicable to Award Periods for  Participants  shall be established in
writing at the beginning of each year. The Committee will select the Performance
Measures from among the following performance criteria:
 
       1. earnings per share,
       2. operating income (before income taxes),
       3. gross profit,
       4. sales,
       5. EBITDA,
       6. free cash flow,
       7. return on invested capital,
       8. selling, general and administrative expenses,
       9. stock price compared to a peer group of companies, and
      10. stock price.
 
B. Further, in establishing Performance Measures for Participants, the Committee
in its sole and  absolute  discretion  may  include  or  exclude at any time the
impact of specific  objective  events that are determined to be extraordinary or
unusual in nature,  infrequent  in  occurrence  or related to the  disposal of a
segment  of a  business  or to a  change  of  accounting  principles;  provided,
however,  such inclusion or exclusion of specific  objective events shall not be
done in such a manner that would  result in the loss of an  otherwise  available
exemption under Section 162(m).
 
C. The Committee may impose additional Performance Measures that have the effect
of  reducing  awards.  It also may modify  Performance  Measures  applicable  to
Participants  that  have the  effect  of  reducing  awards.  It also may  modify
Performance  Measures  applicable to Participants,  except in the case where the
action  would  result  in the loss of an  otherwise  available  exemption  under
Section  162(m),  if it  determines  that the  Performance  Measures have become
unsuitable as a result of certain events.
 
 
VI. FORM OF LONG-TERM INCENTIVE COMPENSATION AWARDS
 
Long-term Incentive Compensation Awards shall be paid in cash.
 
 
VII.  PAYMENT OF LONG-TERM INCENTIVE COMPENSATION AWARDS
 
When a Long-term  Incentive  Compensation Award is made, the Company shall cause
the cash to be paid to the  Participant to whom the award is made at the time or
times specified by the Committee, or, if no time or times are specified, as soon
as  practicable  after the award is made;  provided,  however,  that in no event
shall such payment occur more than three months after the Award Period ends.
 
 
VIII.  CHANGE IN CONTROL
 
In connection with any actual or potential Change in Control, the Committee will
take  all  such  actions  hereunder  as it  may  determine  to be  necessary  or
appropriate  to  treat  Participants  equitably  hereunder,   including  without
limitation the modification or waiver of applicable Performance Measures,  Award
Periods or Long-term Incentive Compensation Awards, notwithstanding the terms of
any initial Long-term Incentive  Compensation Award, and whether to establish or
fund a trust or other arrangement intended to secure the payment of such Awards.
 
 
IX. TERMINATION OF SERVICE OR DEMOTION
 
A. If a Participant  terminates employment with the Company and its subsidiaries
before the Payment Date due to death or Retirement,  the Participant's Long-term
Incentive  Compensation  Awards  for all Award  Periods in effect at the time of
such  termination  of service  will be prorated on the basis of the ratio of the
number of days of  participation  during each such Award Period to the aggregate
number of days in each such Award  Period.  Payment of such  prorated  Long-term
Incentive  Compensation  Awards  will occur at the end of the  applicable  Award
Periods  on the  dates  that all  other  Participants  receive  payment  of such
Long-term Incentive Compensation Awards.
 
B.  If a  Participant  voluntarily  terminates  his  or her  employment  or if a
Participant's  employment with the Company and its subsidiaries is terminated by
the  Company or any such  subsidiary  prior to the end of an Award  Period,  the
Participant will not be entitled to any Long-term  Incentive  Compensation Award
for any such Award Period, except as otherwise provided in an Agreement with the
Company or in the sole discretion of the Company.
 
C. If, prior to the Payment Date, a Participant's duties change prior to the end
of an Award Period, the Participant's  rights to receive any Long-term Incentive
Compensation  for  any  such  Award  Period  will  be  subject  to  revision  or
termination  by the  Committee,  provided that no change will be made that would
cause the award to fail to meet the requirements for deductibility under Section
162(m).
 
 
X. SPECIAL AWARDS AND OTHER PLANS
 
A.  Nothing  contained  in the Plan  shall  prohibit  the  Company or any of its
subsidiaries from granting special performance or recognition awards, under such
conditions  and in such form and manner as it sees fit, to employees  (including
Participants) for meritorious service of any nature.
 
B. In addition,  nothing contained in the Plan shall prohibit the Company or any
of  its  subsidiaries  from  establishing  other  incentive  compensation  plans
providing  for the payment of incentive  compensation  to  employees  (including
Participants).
 
 
XI. ADMINISTRATION, AMENDMENT AND INTERPRETATION OF THE PLAN
 
A. The Board of  Directors  or the  Committee  shall have the right to amend the
Plan from time to time; provided,  however,  that any amendment that changes the
class of eligible  Participants,  modifies the Performance Measures or increases
the maximum  Long-term  Incentive  Compensation  Award a Participant may receive
must be approved by the  stockholders  to the extent  necessary  for the Plan to
continue to meet the  requirements of Section 162(m).  The Board of Directors or
the  Committee  shall  have the  right to  terminate  the Plan at any time or to
direct the  discontinuance  of Long-term  Incentive  Compensation  Awards either
temporarily or  permanently.  Notwithstanding  the foregoing,  in the event this
Plan is terminated before the last day of an Award Period,  Long-term  Incentive
Compensation  Awards payable for such Award Period will be prorated on the basis
of the  ratio  of the  number  of  days  in  such  Award  Period  prior  to such
termination  to the  aggregate  number of days in such Award  Period and will be
paid only after the end of such Award  Period,  which will be deemed to continue
until the expiration thereof as if this Plan had not been terminated.
 
B. This Plan will be  administered  by the  Committee  in its sole and  absolute
discretion,  and the Committee may interpret the Plan and  establish,  amend and
rescind any rules  relating to the Plan.  The  decision  of the  Committee  with
respect  to any  questions  arising in  connection  with the  administration  or
interpretation of the Plan shall be final, conclusive and binding.
 
C. The Committee  may delegate its  responsibilities  under the Plan;  provided,
however,  that the  Committee  shall not  delegate  its  authority to select the
Participants,  establish  Performance Measures, or certify that these goals have
been achieved,  to the extent  necessary to satisfy the  requirements of Section
162(m).
 
 
XII. MISCELLANEOUS
 
A. All expenses and costs in connection  with the operation of the Plan shall be
borne by the Company.
 
B. All  Long-term  Incentive  Compensation  Awards under the Plan are subject to
applicable withholding for federal, state and local taxes.
 
C.  Unless  otherwise  determined  by the  Committee,  all  Long-term  Incentive
Compensation  Awards will be paid from the Company's general assets, and nothing
contained  in this Plan will  require  the Company to set aside or hold in trust
any funds for the  benefit  of any  Participant,  who will have the  status of a
general unsecured creditor of the Company.
 
D. This Plan will not confer  upon any  Participant  any right  with  respect to
continuance  of employment or other service with the Company or any  subsidiary,
nor will it  interfere  in any way with any right the Company or any  subsidiary
would  otherwise  have to  terminate  or modify the terms of such  Participant's
employment or other service at any time.
 
E. Except as  otherwise  provided in this Plan,  no right or benefit  under this
Plan will be subject to  anticipation,  alienation,  sale,  assignment,  pledge,
encumbrance,  or charge, and any attempt to anticipate,  alienate, sell, assign,
pledge, encumber, or charge such right or benefit will be void. No such right or
benefit  will in any manner be liable for or subject to the debts,  liabilities,
or torts of a Participant.
 
F. If any  provision  in this Plan is held to be  invalid or  unenforceable,  no
other provision of this Plan will be affected thereby.
 
G. This Plan will be governed by and  construed in  accordance  with  applicable
United States  federal law and, to the extent not preempted by such federal law,
in accordance with the laws of the State of Texas,  without giving effect to the
principles of conflict of laws thereof.
 

 

 

                                                                    Exhibit 10.2

 

                      Description of 2004 Annual Incentive

                Bonus Performance Measures for Executive Officers

 

On February 20, 2004,  the  Compensation  Committee  established  the  following

performance  measures for the top five executive officers,  other than for David

P. Johnson:

 

   o   50% of the performance measure is based on the increase in RadioShack's

       operating income over the previous year,

 

   o   30% of the performance measure is based on the increase in RadioShack's

       earnings per share over the previous year, and

 

   o   20% of the performance measure is based on the increase in RadioShack's

       growth in sales over the previous year.

 

All  of  Mr.  Johnson's  performance  measure  was  based  on  the  increase  in

RadioShack's operating income over the previous year.

 

<PAGE>

 

 

                                                                    Exhibit 10.3

 

                      Description of 2005 Annual Incentive

                Bonus Performance Measures for Executive Officers

 

On February 24, 2005,  the  Compensation  Committee  established  the  following

performance measures for the top five executive officers:

 

   o   50% of the performance measure is based on the increase in RadioShack's

       operating income over the previous year,

 

   o   25% of the performance measure is based on the increase in RadioShack's

       earnings per share over the previous year, and

 

   o   25% of the performance measure is based on the increase in RadioShack's

       growth in sales over the previous year.