Document:

EX-10.1

 Exhibit 10.1 

THE SECURITIES REPRESENTED BY THIS WARRANT HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), OR
APPLICABLE STATE SECURITIES LAWS. THE SECURITIES REPRESENTED BY THIS WARRANT HAVE BEEN ACQUIRED FOR INVESTMENT AND MAY NOT BE OFFERED, SOLD, TRANSFERRED OR ASSIGNED IN THE ABSENCE OF AN EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR AN
OPINION OF COUNSEL, REASONABLY SATISFACTORY TO THE COMPANY, THAT REGISTRATION IS NOT REQUIRED UNDER THE SECURITIES ACT OR APPLICABLE STATE SECURITIES LAWS UNLESS SOLD PURSUANT TO RULE 144 UNDER THE SECURITIES ACT. THE SECURITIES REPRESENTED BY THIS
WARRANT ARE SUBJECT TO THE TERMS AND CONDITIONS OF, AND MAY ONLY BE TRANSFERRED IN ACCORDANCE WITH, THE TERMS OF THIS WARRANT. 
 LIGHTING
SCIENCE GROUP CORPORATION 
 WARRANT TO PURCHASE COMMON STOCK 

 

			
	Warrant No.: [—]	 	Number of Shares: 5,000,000
	Issuance Date: February 19, 2014	 	

 THIS CERTIFIES THAT, for value received,
[            ] or its Affiliates and successors (the “Holder”) is entitled to purchase from Lighting Science Group Corporation, a Delaware corporation (the
“Company”), at any time and from time to time during the applicable Warrant Exercise Period (defined below) at the Exercise Price (defined below) up to five million (5,000,000) fully paid nonassessable shares of Common Stock
(defined below) (the “Warrant Shares”), all subject to adjustment and upon the terms and conditions provided herein. This Warrant is being issued to the Holder in connection with that certain Guaranty, by Pegasus Capital Partners
IV, L.P. and Pegasus Capital Partners V, L.P., in favor of Agent (the “Sponsor Guaranty”) given in connection with the Company’s entry into that certain Term Loan Agreement, by and among Medley Capital Corporation, as
administrative agent, the lenders party thereto and the Company, as borrower (the “Term Loan”). 
 Section 1.
Definitions. 
 The following terms as used in this Warrant have the following meanings: 

 

	 	(a)	“Acquiring Entity” has the meaning attributed to it in Section 8(a). 

  

	 	(b)	“Adjustment Price” means, as of the applicable date of determination, the lower of (i) the Exercise Price then in effect or (ii) the then current Fair Market Value (after applying a discount
of 10% thereto) per share of Common Stock. 

	 	(c)	“Affiliate” of, or a Person “Affiliated” with, a specified Person, is a Person that directly, or indirectly through one or more intermediaries, controls, or is controlled by, or is
under common control with, the Person specified. 

  

	 	(d)	“Agreement” has the meaning attributed to it in the preamble of this Warrant. 

  

	 	(e)	“Business Day” means any day other than Saturday, Sunday or federal holiday. 

  

	 	(f)	“Cheap Stock Issued” has the meaning attributed to it in Section 7(c). 

  

	 	(g)	“Change of Control” means (a) the sale, conveyance or disposition of all or substantially all of the assets of the Company (other than pursuant to a joint venture arrangement or other transaction
in which the Company, directly or indirectly, receives at least fifty percent (50%) of the voting equity in another entity or a general partnership); (b) the effectuation of a transaction or series of related transactions in which more
than fifty percent (50%) of the voting power of the Company is disposed of (other than (i) as a direct result of normal, uncoordinated trading activities in the Common Stock generally or (ii) solely as a result of the disposition by a
stockholder of the Company to an Affiliate of such stockholder); (c) the consolidation, merger or other business combination of the Company with or into any other entity, immediately following which the prior stockholders of the Company fail to
own, directly or indirectly, at least fifty percent (50%) of the voting equity of the surviving entity; (d) a transaction or series of transactions in which any Person or “group” (as such term is used in Sections 13(d) and 14(d)
of the Exchange Act) acquires more than fifty percent (50%) of the voting equity of the Company (other than the acquisition by a person or “group” that is an Affiliate of or Affiliated with a person or “group” that
immediately prior to such acquisition, beneficially owned fifty percent (50%) or more of the voting equity of the Company); (e) the replacement of a majority of the Company’s Board of Directors with individuals who were not nominated
or elected by at least a majority of the directors at the time of such replacement; or (f) a transaction or series of transactions that constitutes or results in a “going private transaction” (as defined in Section 13(e) of the
Exchange Act and the regulations of the Securities and Exchange Commission issued thereunder). 

  

	 	(h)	“Charter Amendment Effective Date” means the effective date of filing with the Secretary of State of the State of Delaware of the contemplated amendment to the Company’s Certificate of
Incorporation to increase the number of authorized shares of Common Stock of the Company to such number as shall be sufficient to permit the reservation in full of shares of Common Stock underlying all of the Company’s then outstanding
Derivative Securities. 

  

	 	(i)	“Common Stock” means (i) the Company’s common stock, $0.001 par value per share, and (ii) any capital stock into which the Common Stock is changed or any capital stock resulting from a
reclassification of the Common Stock. 

  
 2 

	 	(j)	“Delivery Date” has the meaning attributed to it in Section 2(c). 

  

	 	(k)	“Derivative Security” means any right, option, warrant or other security convertible into or exercisable for Common Stock. 

 

	 	(l)	“Exchange Act” means the Securities Exchange Act of 1934, as amended. 

  

	 	(m)	“Exercise Date” has the meaning attributed to it in Section 2(c). 

  

	 	(n)	“Exercise Documents” has the meaning attributed to it in Section 2(c). 

  

	 	(o)	“Exercise Notice” has the meaning attributed to it in Section 2(a). 

  

	 	(p)	“Exercise Price” is equal to $0.50, subject to adjustment as set forth in this Warrant. 

  

	 	(q)	“Fair Market Value” with respect to Common Stock means the VWAP of the Common Stock for the thirty days preceding the issuance of such shares of Common Stock, or Derivative Securities.

  

	 	(r)	“Issuance Date” means February 19, 2014. 

  

	 	(s)	“Ownership Ratio” has the meaning attributed to it in Section 7(c). 

  

	 	(t)	“Payment” has the meaning attributed to it in Section 2(a). 

  

	 	(u)	“Person” means a natural person or entity, or a government or any division, department or agency thereof. 

  

	 	(v)	“Registration Rights Agreement” has the meaning attributed to it in Section 9. 

  

	 	(w)	“Securities Act” means the Securities Act of 1933, as amended. 

  

	 	(x)	“Subscription Agreements” has the meaning attributed to it in Section 7(d). 

  

	 	(y)	“Trading Market” has the meaning attributed to it in Section 7(c). 

  

	 	(z)	“VWAP” has the meaning attributed to it in Section 7(c). 

  

	 	(aa)	“Warrant” means this Warrant and all Warrants issued in exchange, transfer or replacement thereof. 

  

	 	(bb)	“Warrant Exercise Period” means the period beginning at 12:01 a.m. on the Charter Amendment Effective Date and ending at 11:59 p.m. on February 19, 2024. 

  
 3 

	 	(cc)	“Warrant Shares” has the meaning attributed to it in the preamble of this Warrant. 

Section 2. Exercise of Warrant. 

(a)        This Warrant may be exercised for Warrant Shares, in whole or in part, by the Holder
registered on the books of the Company at any time during the Warrant Exercise Period. Any exercise of this Warrant shall be effected by: 

(i)        delivery of a written notice, in the form attached as Exhibit A (the
“Exercise Notice”), of Holder’s election to exercise this Warrant, specifying the number of Warrant Shares to be purchased; 

(ii)        payment to the Company of an amount equal to the Exercise Price multiplied
by the number of Warrant Shares being purchased, in cash or by wire transfer of immediately available funds (the foregoing methods of payment, including any combination of such methods, referred to herein as the “Payment”); and 

(iii)        the surrender at the principal office of the Company or to a nationally
recognized courier for overnight delivery to the Company, simultaneously with or as soon as practicable following the delivery of the Exercise Notice and the Payment, of this Warrant (or a customary indemnification undertaking with respect to this
Warrant in the case of its loss, theft or destruction). 
 (b)        In lieu of or in addition to
exercising this Warrant and making the Payment in cash or by wire transfer pursuant to Section 2(a)(ii), the Holder may elect to make the Payment by means of receiving shares of Common Stock equal to the value of this Warrant (or portion
thereof being exercised) by delivery and surrender of the Warrant together with the Exercise Notice in accordance with the terms hereof, duly completed to indicate a net issuance exercise and executed by the Holder, in which event the Company shall
issue to the Holder a number of shares of Common Stock computed using the following formula: 
 S = WS * ((FMV – E) / FMV)

 where: 
  

	 	S	equals the number of shares of Common Stock to be issued as Warrant Shares to the Holder; 

  

	 	WS	means, as of any date, the number of Warrant Shares purchase (or portion thereof) under this Warrant that are being exercised at the applicable date of determination; 

 

	 	FMV	means, as of any date, the Fair Market Value per share of Common Stock on the Trading Day immediately preceding the Exercise Date; and 

 

	 	E	means the Exercise Price. 

  
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 (c)        The Company shall, not later than the fifth
Business Day (the “Delivery Date”) following receipt of an Exercise Notice, the Payment and this Warrant or such indemnification (collectively, the “Exercise Documents”), arrange for its transfer agent, on or before
the Delivery Date, to issue and surrender to a nationally recognized courier for overnight delivery to the address specified in the Exercise Notice, a certificate, registered in the name of the Holder or its permitted designee, for the number of
shares of Common Stock to which the Holder is entitled. Upon delivery of the Exercise Notice and the Payment (the “Exercise Date”), the Holder shall be deemed for all corporate purposes to have become the holder of record of the
Warrant Shares with respect to which this Warrant has been exercised on the Delivery Date, irrespective of the date of delivery of the certificates evidencing such Warrant Shares. 

(d)        Unless the rights represented by this Warrant have expired or been fully exercised, the
Company shall, as soon as practicable and in no event later than five Business Days after receipt of the Exercise Documents and at its own expense, issue a new Warrant identical in all respects to this Warrant, except it shall represent rights to
purchase the number of Warrant Shares purchasable immediately prior to exercise, less the number purchased. 
 Section 3.
Representations, Warranties, Covenants and Agreements. The Company hereby represents, warrants, covenants and agrees, as applicable, as follows: 

(a)        This Warrant is, and any Warrants issued in substitution for or in replacement of this
Warrant upon issuance will be, duly authorized, executed and delivered. 
 (b)        All Warrant
Shares issuable upon exercise of this Warrant will be duly authorized, and upon issuance will be validly issued, fully paid and nonassessable, issued without violation of any preemptive or similar rights of any stockholder of the Company and free
from all liens (which term does not include any restrictions imposed by applicable securities laws) and charges with respect to the issue thereof. 

(c)        During the Warrant Exercise Period, the Company will at all times have authorized and
reserved for issuance and delivery upon exercise of the Warrant at least the number of shares of Common Stock needed to provide for the exercise in full of the rights then represented by this Warrant. 

(d)        The Company shall pay all expenses in connection with, and all taxes and other governmental
charges that may be imposed with respect to, the issuance or delivery of Warrant Shares upon exercise of the Warrants. 

(e)        The Company will ensure that the Warrant Shares may be issued without violation of any law
or regulation applicable to the Company or of any requirement of any securities exchange applicable to the Company on which the shares of Common Stock are listed or traded. 

Section 4. Warrant Holder Not Deemed a Stockholder. Nothing contained in this Warrant shall be construed to (a) grant the
Holder any rights to vote or receive dividends or be deemed the holder of shares of the Company for any purpose, (b) confer upon the Holder any of the rights of a 

  
 5 

 
stockholder of the Company or any right to vote, give or withhold consent to any corporate action (whether any reorganization, issue of stock, reclassification of stock, consolidation, merger,
conveyance or otherwise), receive notice of meetings, receive dividends or subscription rights, or otherwise, or (c) impose any liabilities on the Holder to purchase any securities or as a stockholder of the Company, whether asserted by the
Company or creditors of the Company, prior to the issuance of the Warrant Shares. 

Section 5.    Representations of Holder. The Holder, by the acceptance hereof, represents that it is acquiring
this Warrant and the Warrant Shares for its own account for investment only and not with a view towards, or for resale in connection with, the public sale or distribution of this Warrant or the Warrant Shares, except pursuant to sales registered or
exempted under the Securities Act. Upon exercise of this Warrant, the Holder shall, if requested by the Company, confirm in writing, in a form satisfactory to the Company, that the Warrant Shares are being acquired solely for the Holder’s own
account and not as a nominee for any other party, for investment, and not with a view toward distribution or resale. If Holder cannot make such representations because they would be factually incorrect, it shall be a condition to Holder’s
exercise of this Warrant that the Company receives such other representations as the Company considers reasonably necessary to assure the Company that the issuance of its securities upon exercise of this Warrant shall not violate any federal or
state securities laws. The Company shall not be penalized or disadvantaged by the Holder’s inability to exercise this Warrant due to its inability to make the required representations in connection with the exercise of this Warrant. 

Section 6.    Ownership and Transfer. 

(a)        The Company shall maintain at its principal executive offices (or such other office or
agency of the Company as it may designate by notice to the holder hereof), a register for this Warrant, in which the Company shall record the name and address of the Person in whose name this Warrant has been issued, as well as the name and address
of each transferee who has acquired this Warrant in accordance with applicable law and the terms of this Warrant. The Company may treat the Person in whose name this Warrant is registered on the register as the owner and holder thereof for all
purposes, notwithstanding any notice to the contrary, but in all events recognizing any transfers made in accordance with the terms of this Warrant. 

(b)        This Warrant may not be transferred or assigned except to an Affiliate or a successor of
the Holder or in connection with a transfer by the Holder of all or any portion of its obligations pursuant to the Sponsor Guranty in which case this Warrant may be transferred or assigned to any transferee(s) of such Sponsor Guaranty. Subject to
the terms of this Section 6, upon surrender of this Warrant to the Company at its principal office or at the office of its transfer agent, if any, with the Assignment Form annexed hereto as Exhibit B duly executed and funds sufficient to
pay any transfer tax, the Company shall, without charge, execute and deliver a new Warrant in the name of the transferee evidencing the portion of the Warrant certificate so transferred and a new Warrant certificate evidencing the remaining portion
of the Warrant certificate not so transferred, if any, shall be issued to the transferring Holder. The delivery of the new Warrant certificate by the Company to the transferee thereof shall be deemed to constitute acceptance by such transferee of
all of the rights and obligations of a holder of a Warrant certificate. Subject to the terms of this Section 6, this Warrant may be divided or combined with other warrants which carry the same

  
 6 

 
rights upon presentation hereof at the principal office of the Company together with a written notice specifying the names and denominations in which new Warrants are to be issued and signed by
the Warrant Holder hereof. 
 (c)         Warrant Shares may only be offered, sold, transferred or
assigned in compliance with applicable federal and state law. 
 Section 7.  Adjustment of Exercise Price and Number of
Shares. The Exercise Price and the number of Warrant Shares shall be adjusted from time to time as follows: 

(a)        Stock Splits. If the Company subdivides (by any stock split, recapitalization or
otherwise) its outstanding shares of Common Stock into a greater number of shares, the Exercise Price in effect immediately prior to the subdivision will be proportionately reduced and the number of Warrant Shares will be proportionately increased.
If the Company combines (by combination, reverse stock split or otherwise) its outstanding shares of Common Stock into a smaller number of shares, the Exercise Price in effect immediately prior to the combination will be proportionately increased
and the number of Warrant Shares will be proportionately decreased. Any adjustment under this Section 7(a) shall become effective at the close of business on the date the subdivision or combination becomes effective. 

(b)        Stock Dividends. If the Company declares a dividend or any other distribution upon
the Common Stock that is payable in shares of Common Stock or Derivative Securities, the number of Warrant Shares will be proportionately increased and the Exercise Price in effect immediately prior to the declaration of the dividend or distribution
will be reduced to the quotient obtained by dividing (i) the number of shares of Common Stock outstanding immediately prior to the declaration multiplied by the then effective Exercise Price by (ii) the total number of shares of Common
Stock outstanding immediately after the declaration. 
 (c)        Issuance of Common Stock Below
Adjustment Price. Subject to the provisions of Section 7(d) hereof, if the Company shall issue or sell shares of Common Stock, or Derivative Securities containing the right to subscribe for or purchase shares of Common Stock, to an
Affiliate or controlling Person of the Company at a price per share (determined, in the case of such Derivative Securities, by dividing (A) the total amount receivable by the Company in consideration of the issuance and sale of such Derivative
Securities, plus the total consideration, if any, payable to the Company upon exercise, conversion or exchange thereof, by (B) the total number of shares of Common Stock covered by such Derivative Securities) that is lower than the Adjustment
Price in effect immediately prior to such sale or issuance, then (1) the number of Warrant Shares thereafter issuable upon the exercise of this Warrant shall be increased by adding the number of Warrant Shares theretofore issuable upon exercise
of this Warrant to the product of (x) the Cheap Stock Issued (defined below), multiplied by (y) the Ownership Ratio (defined below); and (2) the Exercise Price shall be reduced by multiplying the then current Exercise Price by a
fraction of which, the numerator shall be the number of Warrant Shares issuable immediately prior to such sale or issuance and the denominator of which shall be the number of Warrant Shares issuable after adjustment pursuant to clause (1), above.
Such adjustment shall be made successively whenever any such sale or issuance is made. 

  
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 “Cheap Stock Issued” shall be the number of additional shares of Common Stock
issued by the Company as described above minus the number of shares of Common Stock that the aggregate offering price of the total number of shares of Common Stock so issued would purchase at the Adjustment Price per share of Common Stock. 

“Fair Market Value” shall be equal the average VWAP of the Common Stock for the thirty days preceding the issuance of such
shares of Common Stock, or Derivative Securities. 
 “Ownership Ratio” shall be a fraction, the numerator of which shall be
the number of Warrant Shares prior to such time issuable upon exercise of this Warrant, and the denominator of which shall be the number of shares of Common Stock then outstanding on the date of issuance or sale of such shares of Common Stock or
such Derivative Securities. For purposes of such adjustments, the shares of Common Stock which the holder of any such Derivative Securities shall be entitled to subscribe for or purchase (assuming the exercise or conversion of any such Derivative
Securities for cash (not on a “cashless” basis)) shall be deemed to be issued and outstanding as of the date of the sale and issuance of the rights, warrants or convertible or exchangeable securities. 

“Trading Market” means the following markets or exchanges on which the Common Stock is listed or quoted for trading on the
date in question: the NYSE Amex Equities, The Nasdaq Capital Market, The Nasdaq Global Market, The Nasdaq Global Select Market, the New York Stock Exchange or the OTC Bulletin Board. 

“VWAP” means, for any date, the price determined by the first of the following clauses that applies: (a) if the Common
Stock is then listed or quoted on a Trading Market, the daily volume weighted average price of the Common Stock for such date (or the nearest preceding date) on the Trading Market on which the Common Stock is then listed or quoted for trading as
reported by Bloomberg L.P. (based on a Trading Day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City time); (b) if the OTC Bulletin Board is not a Trading Market, the volume weighted average price of the Common Stock for such date
(or the nearest preceding date) on the OTC Bulletin Board; (c) if the Common Stock is not then quoted for trading on the OTC Bulletin Board and if prices for the Common Stock are then reported in the “Pink Sheets” published by Pink
Sheets, LLC (or a similar organization or agency succeeding to its functions of reporting prices), the most recent bid price per share of the Common Stock so reported; or (d) in all other cases, the fair market value of a share of Common Stock
as determined by an independent appraiser selected in good faith by the Holder and reasonably acceptable to the Company, the fees and expenses of which shall be paid by the Company. 

(d)        Section 7(c) shall not apply to: securities or Derivative Securities issued or
issuable to Affiliates or controlling Persons of the Company (i) who are employees, officers, directors, consultants or other service providers of the Company pursuant to a plan or agreement approved by the board of directors, including the
Lighting Science Group Corporation Amended and Restated Equity-Based Compensation Plan, (ii) to settle the Company’s directors’ fees, (iii) pursuant to the exercise or conversion or exchange of Derivative Securities, restricted
stock, or other derivative instruments of the Company, (iv) as a dividend on preferred stock of the Company, (v) pursuant to an acquisition of shares or assets of a target company at a value not less than the fair market value as
determined by the board of directors of the Company acting in good faith, (vi) in connection 

  
 8 

 
with a strategic commercial agreement or commercial relationship at a value not less than the fair market value as determined by the board of directors of the Company acting in good faith,
(vii) pursuant to the right of the Company to issue securities in Subsequent Offerings (as such term is defined in each of the Series J Subscriptions Agreements, dated as of January 3, 2013, by and between the Company and each of LSGC
Holdings II LLC, PCA LSG Holdings, LLC, RW LSG Holdings LLC, Cleantech Europe II (A) LP and Cleantech Europe II (B) LP (collectively, the “Subscription Agreements”), (viii) pursuant to the Rights Offering (as such
term is defined in each of the Subscription Agreements) or (ix) pursuant to the exercise of any preemptive rights arising from the issuance of securities contemplated by the Subscription Agreements or by that certain Preferred Stock
Subscription Agreement, dated as of September 11, 2013, by and between the Company, LSGC Holdings II LLC, PCA LSG Holdings, LLC and RW LSG Holdings LLC. 

Section 8.    Purchase Rights; Reorganization, Reclassification, Consolidation, Merger or Sale. Upon the
consummation of any (i) sale of all or substantially all of the Company’s assets to an acquiring Person or (ii) other Change of Control, the Company will secure from the Person purchasing the assets or the successor resulting from the Change of
Control (in each case, the “Acquiring Entity”) a written agreement to deliver to the Holder, in exchange for this Warrant, a security of the Acquiring Entity evidenced by a written instrument substantially similar in form and
substance to this Warrant and reasonably satisfactory to the Holder. Prior to the consummation of any other Change of Control, the Company shall make appropriate provision to insure that the Holder will thereafter have the right to acquire and
receive, in lieu of the shares of Common Stock immediately theretofore acquirable and receivable upon the exercise of this Warrant, such shares of stock, securities or assets that would have been issued or payable in the Change of Control with
respect to or in exchange for the number of Warrant Shares that would have been acquirable as of the date of the Change of Control. 

Section 9.    Registration Rights Agreement. The Company and the Holder (or an Affiliate thereof) are parties
to that certain Amended and Restated Registration Rights Agreement, dated as of January 23, 2009, as further amended as of May 25, 2012 (the “Registration Rights Agreement”), and the Company hereby acknowledges and affirms
that the Holder and its Affiliates shall have all rights set forth in the Registration Rights Agreement. 

Section 10.    Lost, Stolen, Mutilated or Destroyed Warrant. If this Warrant is lost, stolen, mutilated or
destroyed, the Company shall promptly, on receipt of an indemnification undertaking reasonably satisfactory to the Company (or, in the case of a mutilated Warrant, the Warrant), issue a new Warrant of like denomination and tenor as this Warrant so
lost, stolen, mutilated or destroyed. 
 Section 11.    Notice. Any notices, consents, waivers or other
communications required or permitted to be given under the terms of this Warrant must be in writing and will be deemed to have been delivered: (i) upon receipt, when delivered personally; (ii) upon receipt, when sent by fax or email
transmittal (provided confirmation of transmission is mechanically or electronically generated and kept on file by the sending party); or (iii) one Business Day after deposit with a nationally recognized overnight delivery service, in each case
properly addressed to the party to receive the same. The addresses, fax numbers and email addresses for communications shall be: 
 If to
the Company: 
 Lighting Science Group Corporation 

Attention: Thomas C. Shields, Chief Financial Officer 

1227 South Patrick Drive 

  
 9 

 Building 2A 

Satellite Beach, FL 32937 
 Tel:
(321) 779-5520 
 Fax: (321) 779-5521 

Email: tom.shields@lsgc.com 

with a copy (which shall not constitute notice) to: 

Haynes and Boone, LLP 
 2323
Victory Avenue, Suite 700 
 Dallas, TX 75219 

Tel: (214) 651-5273 
 Fax:
(214) 200-0534 
 Attention: Ryan R. Cox, Esq. 

Email: ryan.cox@haynesboone.com 

If to the Holder: 
 [—] 
 [—] 

[—] 

[—] 

Attention: [—] 

Tel: [—] 

Email: [—] 

with a copy (which shall not constitute notice) to: 

[—] 

[—] 

[—] 

Attention: [—] 

Tel: [—] 

Fax: [—] 

Email: [—] 

Each party shall provide five days’ prior written notice to the other party of any change in address or fax number or email address.
Written confirmation of receipt (A) given by the recipient of any notice, consent, waiver or other communication, (B) mechanically or electronically generated by the sender’s fax machine or computer containing the time, date,
recipient fax number or email address and an image of the first page of the fax transmission or the content of the email, or (C) provided by a nationally recognized overnight delivery service, shall be rebuttable evidence of receipt. 

  
 10 

 Section 12.    Amendment and Waiver. This Warrant may not be
modified or amended except pursuant to an instrument in writing signed by the Company and the Holder. No provision hereunder may be waived other than in a written instrument executed by the waiving party. 

Section 13.    Governing Law. This Warrant shall be construed and enforced in accordance with, and all
questions concerning the construction, validity, interpretation and performance of this Warrant shall be governed by, the internal laws of the State of Delaware, without giving effect to any choice of law or conflict of law provision or rule
(whether of the State of Delaware or any other jurisdictions) that would cause the application of the laws of any jurisdictions other than the State of Delaware. 

Section 14.    Restrictive Legends. At all times this Warrant, and until such time as a registration statement
has been declared effective by the U.S. Securities and Exchange Commission or the Warrant Shares may be sold pursuant to Rule 144 under the Securities Act without any restriction as to the number of securities that can then be immediately sold,
certificates for any Warrant Shares will, in addition to any legend required under applicable securities law, bear a restrictive legend substantially in the form set forth on the first page of this Warrant. 

*** 

  
 11 

 IN WITNESS WHEREOF, the Company has caused this Warrant to be signed as of [—]. 
  

			
	LIGHTING SCIENCE GROUP CORPORATION
		
	By:    	 	  

		 	Name:
		 	Title:

 Agreed and Acknowledged on [—]. 

 

			
	[NAME OF HOLDER]
		
	By:    	 	  

		 	Name:
		 	Title:

 Exhibit A To Warrant 

LIGHTING SCIENCE GROUP CORPORATION 

EXERCISE NOTICE 
 TO BE
EXECUTED BY THE REGISTERED HOLDER 
 TO EXERCISE THIS WARRANT 

The undersigned holder hereby exercises the right to purchase
                     shares of Common Stock (“Warrant Shares”) of Lighting Science Group Corporation, a Delaware corporation
(the “Company”), evidenced by the attached Warrant (the “Warrant”). Capitalized terms used herein and not otherwise defined shall have the respective meanings set forth in the Warrant. 

 

	 	1.	Payment of Exercise Price (check applicable box). 

  

	 	 ̈	Payment in the sum of $             is enclosed in accordance with the terms of the Warrant. 

 

	 	 ̈	Payment in the sum of $             has been wire transferred to the Company at the following account:
                                     in accordance with the
terms of the Warrant. 

  

	 	 ̈	Holder hereby elects to make the payment for the Warrant Shares in accordance with Section 2(b) of the Warrant. 

2.        Delivery of Warrant Shares. The Company shall deliver the Warrant Shares in the name
of the undersigned or in such other name as is specified below in accordance with Section 2(b) of the Warrant at the following address: 
  

 
  

 
  

 

3.        Accredited Investor. The undersigned is an “accredited investor” as defined
in Regulation D promulgated under the Securities Act of 1933, as amended. 
 Date:
                        ,              

[NAME OF HOLDER] 
  

			
	By:	 	  

		 	Name:
		 	Title:

 ACKNOWLEDGMENT 

The Company hereby acknowledges this Exercise Notice and hereby directs
                     to issue the above indicated number of shares of Common Stock in accordance with the Transfer Agent Instructions dated
                    , 20         from the Company and acknowledged and agreed to by
                                . 

 

			
	LIGHTING SCIENCE GROUP CORPORATION
		
	By:	 	  

		 	Name:
		 	Title:

 Exhibit B To Warrant 

ASSIGNMENT 
 To be Executed
by the Registered Holder in Order to Assign Warrants 
 For Value Received,
                                         
                                        hereby
sells, assigns and transfers unto 
  
  

(PLEASE TYPE OR PRINT NAME AND ADDRESS) 
  

 
  

 
  

 
 (SOCIAL SECURITY OR TAX IDENTIFICATION
NUMBER) 
  

			
	and be delivered to	 	  

 (PLEASE PRINT OR TYPE NAME AND ADDRESS) 

                          
                               of the Warrants represented by this Warrant Certificate and does
hereby irrevocably constitute and appoint
                                         
                    Attorney to transfer this Warrant Certificate on the books of the Company, with full power of substitution in the premises. 

 

			
	Dated:
                                         
                                   	  	  

		  	(SIGNATURE)

 THE SIGNATURE TO THE ASSIGNMENT MUST CORRESPOND TO THE NAME WRITTEN UPON THE FACE OF THIS WARRANT CERTIFICATE IN EVERY
PARTICULAR, WITHOUT ALTERATION OR ENLARGEMENT OR ANY CHANGE WHATSOEVER AND MUST BE GUARANTEED BY AN ELIGIBLE GUARANTOR INSTITUTION (BANKS, STOCKBROKERS, SAVINGS AND LOAN ASSOCIATIONS AND CREDIT UNIONS WITH MEMBERSHIP IN AN APPROVED SIGNATURE
GUARANTEE MEDALLION PROGRAM PURSUANT TO S.E.C. RULE 17 Ad – 15).EX-10.1

 Exhibit 10.1 

TRANSITION SERVICES AGREEMENT 

Between 
 SEARS HOLDINGS
MANAGEMENT CORPORATION 
 And 

LANDS’ END, INC. 

                       
         , 2014 

 Table of Contents 

 

							
	 	 	 	  	Page	 
	 ARTICLE I. SERVICES
	  	 	4	  
	 1.01
	 	Transition Services to be Provided	  	 	4	  
	 1.02
	 	Quantity and Nature of Service	  	 	5	  
	 1.03
	 	Changes in the Services	  	 	5	  
	 1.04
	 	Transition Plan	  	 	5	  
	 1.05
	 	Transition Services Shared Agreements	  	 	6	  
	 1.06
	 	Standard of Care	  	 	6	  
	 1.07
	 	Responsibility For Errors; Delays	  	 	7	  
	 1.08
	 	Good Faith Cooperation; Alternatives	  	 	7	  
	 1.09
	 	Use of Third Parties	  	 	7	  
	 1.10
	 	Assets of LE	  	 	7	  
	 1.11
	 	Ownership of Data and Other Assets	  	 	7	  
	 1.12
	 	Contact Person	  	 	7	  
		
	 ARTICLE II. CHARGES AND PAYMENTS FOR SERVICES
	  	 	8	  
	 2.01
	 	Compensation	  	 	8	  
	 2.02
	 	Payments	  	 	8	  
	 2.03
	 	Taxes	  	 	8	  
		
	 ARTICLE III. TERMINATION
	  	 	9	  
	 3.01
	 	Termination of an Individual Service for Convenience by LE	  	 	9	  
	 3.02
	 	Termination of the Agreement	  	 	9	  
	 3.03
	 	Obligations on Termination	  	 	9	  
	 3.04
	 	Termination of an Individual Service by SHMC	  	 	9	  
		
	 ARTICLE IV. CONFIDENTIALITY
	  	 	10	  
	 4.01
	 	Confidential Information	  	 	10	  
	 4.02
	 	Treatment of Confidential Information	  	 	10	  
	 4.03
	 	Exceptions to Confidential Treatment	  	 	11	  
	 4.04
	 	Protective Arrangement	  	 	11	  
	 4.05
	 	Ownership of Information	  	 	11	  
		
	 ARTICLE V. INDEMNIFICATION; LIMITATION OF LIABILITY
	  	 	12	  
	 5.01
	 	Indemnification by LE	  	 	12	  
	 5.02
	 	Indemnification by SHMC	  	 	12	  
	 5.03
	 	Procedure	  	 	12	  
	 5.04
	 	Joint Claims	  	 	13	  
	 5.05
	 	Independent Obligation	  	 	13	  
	 5.06
	 	Limitation of Liability	  	 	13	  
		
	 ARTICLE VI. MISCELLANEOUS
	  	 	13	  
	 6.01
	 	Expenses	  	 	13	  

  
 ii 

							
	 6.02
	 	Vendor Agreements	  	 	14	  
	 6.04
	 	Amendment; No Waiver	  	 	14	  
	 6.05
	 	Assignment	  	 	15	  
	 6.06
	 	Notices	  	 	15	  
	 6.07
	 	Publicity	  	 	15	  
	 6.08
	 	Survival	  	 	16	  
	 6.09
	 	No Third Party Rights	  	 	16	  
	 6.10
	 	Severability	  	 	16	  
	 6.11
	 	Entire Agreement	  	 	16	  
	 6.12
	 	Equitable Relief	  	 	16	  
	 6.13
	 	Force Majeure	  	 	16	  
	 6.14
	 	Fair Construction	  	 	17	  
	 6.15
	 	No Agency	  	 	17	  
	 6.16
	 	Construction and Interpretation	  	 	17	  
	 6.17
	 	Condition Precedent to the Effectiveness of this Agreement	  	 	17	  
	 6.18
	 	Dispute Resolution	  	 	17	  
	 6.19
	 	Governing Law; Jurisdiction	  	 	18	  
	 6.20
	 	Counterparts	  	 	20	  

 Appendices 
  

			
	APPENDIX #1	  	Glossary
		
	APPENDIX #2	  	Transition Services
		
	APPENDIX #3	  	Effective Date
		
	APPENDIX #4	  	Contact Persons
		
	APPENDIX #5	  	Shared Agreements

  
 iii 

 TRANSITION SERVICES AGREEMENT 

                       
         , 2014 
 This Transition Services Agreement (this
“Agreement” or “TSA”) is between Sears Holdings Management Corporation, a Delaware corporation (“SHMC”), and Lands’ End, Inc., a Delaware corporation (“LE”). SHMC
and LE each are sometimes referred to as a “Party” and together sometimes are referred to as the “Parties.” Certain terms are defined where they are first used below, while others are defined in Appendix #1
(Glossary). 
 Terms and Conditions 

For good and valuable consideration, the receipt of which SHMC and LE acknowledge, SHMC and LE agree as follows: 

ARTICLE I.SERVICES 
 1.01
Transition Services to be Provided. During the Service Period SHMC will provide to LE the transition services described on Appendix #2 (Transition Services) to the extent not prohibited by Applicable Law (together, the
“Services”). “Service Period” means the period commencing immediately following the “Effective Time” specified in the Separation and Distribution Agreement (the “Separation Agreement”) to
be executed and delivered by LE and Sears Holdings Corporation (the date on which the Effective Time occurs, the “Effective Date”) and continuing until 5:00 p.m. (Central Time) on the last day of the 12th full calendar month following the Effective Date. This Agreement will expire at 11:59 p.m. (Central Time) on the last day of the Service Period, automatically and without notice. Neither party has
rights to renew or extend the Service Period. The calendar day that becomes the Effective Date will be inserted on Appendix #3 (Effective Date) after the Effective Date has occurred. Except as expressly stated on Appendix #2 (Transition
Services), in the event of any conflict or inconsistency between this Agreement and Appendix #2, this Agreement will control. Unless otherwise agreed in writing by the Parties, the Services to be provided by SHMC under this Agreement are limited to
those expressly stated herein. This Agreement, and the Services, Fees and Expenses hereunder, may only be modified by a written amendment which must be signed by both parties to be effective. LE acknowledges that modifications to this Agreement will
require certain internal approvals by SHMC and therefore absent a signed written amendment; LE will not rely (and any such reliance would be unreasonable) upon any proposed amendment or course of dealing by the parties. If either Party identifies a
service that was previously provided by SHMC that is not described in included in Appendix #2, it will notify the other party’s Contact Person (as provided for in Section 1.12), and the parties will work together to Good Faith to
determine whether they wish to have such service added to this Agreement; any such addition will require a written amendment signed by both parties to be effective. The parties will include in such an amendment, if they agree to execute one, a
description of the service, the Fees (if any), and allocation of expenses (if any) for such Service. 

  
 4 

 1.02 Quantity and Nature of Service. Except as otherwise provided in this
Agreement, there will be no change in the scope or level of, or use by, LE of Services during the Service Period (including changes requiring the hiring or training of additional employees by SHMC) without the mutual written agreement of the Parties
and adjustments, if any, to the charges for such Services. However, SHMC may make changes from time to time in the manner of performing Services (including changes to its, its Affiliates’ and its Personnel’s systems without LE’s
consent), whether the Services are provided by SHMC through its employees, through Vendors that are described on Appendix #2, or through shared contracts that are described in Appendix #5. Notwithstanding anything in this Agreement to the contrary,
SHMC will not provide any legal services or legal advice to LE. LE is not entitled to rely on SHMC for legal advice or counsel, and any advisory communications given by SHMC to LE is not to be construed as legal advice. LE will not resell any
Services, provide the Services to any joint-venture or non-wholly owned subsidiary, or otherwise use the Services in any way other than in connection with the conduct of LE’s business as it is operated on the day before the Effective Date. 

1.03 Changes in the Services. If LE desires to make changes in this Agreement to provide for different or additional Services
(each a “Service Change”) to be provided by SHMC, the parties shall comply with the following Service Change process: 
 (a)
LE shall prepare a written proposal for the Service Change including a description of the services, deliverables, and schedule, in such detail as would be needed by an unaffiliated third party contractor to develop a competent price proposal for
similar services. For special project work that is within the scope of services covered by an hourly or unit rate in Appendix #2, LE may use the hourly rate or unit rate stated in Appendix #2 in developing the proposal price. 

(b) If SHMC is willing to consider the Service Change, SHMC will send to LE a response, including any changes to the services, deliverables,
schedule and fees under this Agreement. 
 (c) All Service Change proposals and responses must be delivered by a Party’s Contact Person
to the other Party’s Contact Person. If the Parties desire, each in their sole discretion, to move forward with the Service Change the Parties will negotiate a proposed amendment documenting the Service Change, after which each party will need
to obtain all necessary internal approvals prior to signing the proposed amendment. In the absence of a signed amendment, the Parties must fulfill their obligations under this Agreement without regard to such proposed amendment. 

1.04 Transition Plan. At least quarterly, and in the event of a Stockholding Change, at least monthly, throughout the Service
Period, LE will provide SHMC with current information and reasonable assistance concerning LE’s plans for transitioning the performance of all Services to LE or its designees prior to the completion of the Service Period. SHMC will provide LE
with such information as is reasonably necessary to assist LE with such transition. 

  
 5 

 1.05 Transition Services Shared Agreements. In addition to those activities
described in Appendix #2, the Services include SHMC allowing LE to continue to procure products and services under written contracts described in Appendix #5 (the “Shared Agreements”); provided that LE’s continued use of each
Shared Agreement is contingent upon the Vendor in such agreement not objecting to such continued use. Furthermore, notwithstanding any other provision in this Agreement, SHMC has no liability to LE or its Representatives in connection with or
resulting from the Vendor’s actions (or failures to act) under any Shared Agreement. 
 (a) SHMC shall, upon LE’s written request,
provide reasonable administrative assistance to LE as requested by LE from time to time to assist LE in placing orders, reconciling and paying invoices directly with the Vendor under the Shared Agreements; it is not expected that SHMC will serve as
LE’s order clerk or billing clerk for day-to-day transactions under the Shared Agreements. LE’s right to use the Shared Agreements will continue until the earlier of the following occurs: a) the loss of LE’s right to continue being
served under the Shared Agreement by operation of its terms (e.g., expiration or termination, changes in LE’s eligibility for service, etc.) or b) expiration of the Service Period (except as notated for extended service in Appendix #5). SHMC
and its Affiliates are not restricted in any way from terminating any Shared Agreements, in whole or in part, for cause or for convenience, nor from allowing any Shared Agreement or any part thereof to expire, nor from exercising or forgoing the
exercise of any option to extend or renew the term of any Shared Agreement or any part thereof, nor from deciding in its sole discretion whether to negotiate for extension, renewal, or changes to any Shared Agreement or any part thereof. However,
SHMC and its Affiliates will not extend any Shared Agreement that commits LE to procure goods or services from the Vendor without LE’s prior approval. SHMC is not obligated to revive or replace any terminated or expired Shared Agreement or
portion thereof. 
 (b) LE will perform as and when due, each and every one of the obligations set forth in each Shared Agreement applicable
to SHMC, to the same extent as if LE (rather than SHMC or its Affiliates, as applicable) were the party to such Shared Agreement. Without limiting the foregoing, LE shall take such actions as directed by SHMC to fulfill its obligations under the
Shared Agreements. LE represents and warrants to SHMC that (a) it has the power, capacity and authority to execute and deliver this Agreement, and to perform its obligations hereunder and under the Shared Agreements, (b) the execution and
delivery of this Agreement by it, and the performance by it of its obligations under this Agreement and the Shared Agreements does not and shall not conflict with, breach, violate or cause a default under any contract, agreement, instrument, order,
judgment or decree to which it or any of its affiliates is a party or by which any of them is bound, and (c) upon LE’s execution and delivery of this Agreement, this Agreement will be valid and binding on LE and enforceable in accordance
with its terms. 
 1.06 Standard of Care. Except as otherwise set forth in this Agreement, SHMC does not assume any
responsibility under this Agreement other than to render the Services in Good Faith and in compliance with all Applicable Laws, without willful misconduct or gross negligence. SHMC MAKES NO OTHER GUARANTEE, REPRESENTATION, OR WARRANTY OF ANY KIND
(WHETHER EXPRESS OR IMPLIED) REGARDING ANY OF THE SERVICES PROVIDED HEREUNDER, AND EXPRESSLY DISCLAIMS ALL OTHER GUARANTEES, REPRESENTATIONS, AND WARRANTIES OF ANY NATURE WHATSOEVER, WHETHER STATUTORY, ORAL, WRITTEN, EXPRESS OR IMPLIED, INCLUDING
ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE AND ANY WARRANTIES ARISING FROM COURSE 

  
 6 

 
OF DEALING OR USAGE OF TRADE. SUBJECT TO THE OTHER PROVISIONS OF THIS AGREEMENT, SHMC WILL ONLY BE OBLIGATED TO PROVIDE SERVICES IN A MANNER CONSISTENT WITH PAST PRACTICE (INCLUDING
PRIORITIZATION AMONG PROJECTS FOR SHMC, SHMC’S AFFILIATES, AND LE). 
 1.07 Responsibility For Errors; Delays. SHMC’s
sole responsibility to LE for errors or omissions in Services caused by SHMC will be to furnish correct information, payment or adjustment in the Services, and if such errors or omissions are solely or primarily caused by SHMC, SHMC will promptly
furnish such corrections at no additional cost or expense to LE if LE promptly advises SHMC of such error or omission. 
 1.08 Good
Faith Cooperation; Alternatives. SHMC and LE will use Good Faith efforts to cooperate with each other in all matters relating to the provision and receipt of the Services. If SHMC reasonably believes it is unable to provide any Service
because of a failure to obtain Vendor consents or because of impracticability, SHMC will notify LE promptly after SHMC becomes aware of such fact and the Parties will cooperate to determine the best alternative approach. LE shall provide such
reasonable advance notice and forecasts of Services as are requested by SHMC or its Vendor performing the Services from time to time. 
 1.09
Use of Third Parties. SHMC may use any Affiliate or any Vendor (including former Affiliates) to provide the Services, however SHMC will remain responsible at all times for the performance of Services by its Affiliate or any Vendor
under this Agreement, except as stated in Section 1.06. 
 1.10 Assets of LE. During the Service Period, (i) SHMC and
its Affiliates and Vendors may use, at no charge, all of the software and other assets, tangible and intangible, of LE (together, the “Assets”) to the extent necessary to perform the Services (but for no other purpose), and
(ii) LE will consult with SHMC prior to upgrading or replacing any of the Assets that are necessary for SHMC to provide the Services. 

1.11 Ownership of Data and Other Assets. Neither Party will acquire under this Agreement any right, title or interest in any
Asset that is owned or licensed by the other. All data provided by or on behalf of a Party to the other Party for the purpose of providing the Services will remain the property of the providing Party. To the extent the provision of any Service
involves intellectual property, including software or patented or copyrighted material, or material constituting trade secrets, neither Party will copy, modify, reverse engineer, decompile or in any way alter any of such material, or otherwise use
such material in a manner inconsistent with the terms and provisions of this Agreement, without the express written consent of the other Party. All specifications, tapes, software, programs, services, manuals, materials, and documentation developed
or provided by SHMC, its Affiliate or Vendor, and utilized in performing this Agreement, will be and remain the property of SHMC, its Affiliate or Vendor, as the case may be, and may not be sold, transferred, disseminated, or conveyed by LE to any
other entity or used other than in performance of this Agreement without the express written permission of SHMC. 
 1.12 Contact
Person. Each Party will appoint a contact person (each, a “Contact Person”) to facilitate communications and performance under this Agreement. The initial Contact Person of each Party is set forth on Appendix #4. Each
Party will have the right at any time and from time to time to replace its Contact Person by written notice to the other Party. 

  
 7 

 ARTICLE II. 

CHARGES AND PAYMENTS FOR SERVICES 

2.01 Compensation. 

(a) Fees. As consideration for the provision of Services, LE will pay SHMC fees for the Services specified on Appendix #2 (the
“Fees”), payable in equal installments in advance as provided on Appendix #2. Upon termination of an individual Service, LE will pay a pro rata portion of the applicable Fee specified on Appendix #2, calculated based
on the portion of the individual Service actually performed, or expense actually incurred, through the date SHMC performs the Service. If the Fees include charges for Services performed by a Vendor and the Vendor’s fees increase during the
Service Period, then SHMC may pass through the increased charges as an increase in the Fees. 
 (b) Expenses. In addition to the Fees,
LE will reimburse SHMC for all reasonable out-of-pocket expenses actually incurred in its performance of the Services that are not included in the Fees (“Expenses”). To the extent reasonably practicable, SHMC will provide LE with
notice of such Expenses prior to incurring them. If directed by SHMC, LE will pay directly any or all Vendors providing Services to or for the benefit of LE. 

2.02 Payments. LE will pay Fees in accordance with Section 2.01(a). Unless otherwise mutually agreed in writing, all
amounts payable under this Agreement will be reconciled weekly and the Parties will after netting amounts due under the other Ancillary Agreements make payment (to the Party who is owned the net amount) by electronic transfer of immediately
available funds to a bank account designated by such Party from time to time. Monthly installments will be included the first week’s reconciliation of each month. All amounts remaining unpaid for more than 15 days after their respective due
date(s) will accrue interest as set forth in Section 14.19 (Payment Terms) of the Separation Agreement until paid in full. 
 2.03
Taxes. Fees do not include applicable taxes. LE will be responsible for the payment of all taxes payable in connection with the Services including sales, use, excise, value-added, business, service, goods and services,
consumption, withholding, and other similar taxes or duties, including taxes incurred on transactions between and among SHMC, its Affiliates, and Vendors, along with any related interest and penalties (“Transaction Taxes”). LE
will reimburse SHMC for any deficiency relating to Transaction Taxes that are LE’s responsibility under this Agreement. Notwithstanding anything in this Section 2.03 to the contrary, each Party will be responsible for its own income
and franchise taxes, employment taxes, and property taxes. The Parties will cooperate in Good Faith to minimize Transaction Taxes to the extent legally permissible. Each Party will provide to the other Party any resale exemption, multiple
points of use certificates, treaty certification and other exemption information reasonably requested by the other Party. 

  
 8 

 ARTICLE III. 

TERMINATION 
 3.01
Termination of an Individual Service for Convenience by LE. Subject to the next sentence, LE, upon 60 days’ prior written notice to SHMC, may reduce or terminate for LE’s convenience any individual Service at the end of a LE
fiscal month. LE may not terminate an individual Service if the termination would adversely affect SHMC’s ability to perform another Service. If LE’s reduction or termination of a Service (including a Shared Agreement) results in charges
to SHMC or its Affiliate during the Term of this Agreement by a Vendor (e.g., termination charges or loss of volume discounts), LE will reimburse SHMC for such charges. 

3.02 Termination of the Agreement. 

(a) Subject to the next sentence, LE or SHMC may terminate this Agreement in the event of a material breach of this Agreement by the other
Party if the breach is curable by the breaching Party and the breaching Party fails to cure the breach within 30 days following its receipt of written notice of the breach from the non-breaching Party, or in the event of an assignment with respect
to which SHMC has not consented in accordance with Section 6.06 (Assignment). If the breach is not curable by the breaching Party, the non-breaching Party may immediately terminate this Agreement following the non-breaching Party’s
delivery of notice to the breaching Party. 
 (b) LE’s breach any of the Cross Default Agreements constitutes a breach by LE of this
Agreement (which breach may only be cured, if at all, in accordance with the express provisions of the affected Cross Default Agreement). Furthermore, if LE wrongfully terminates a Cross Default Agreement or if LE’s breach of a Cross Default
Agreement results in the SHC Entity counterparty terminating that agreement; then SHMC may also terminate this Agreement for cause. SHMC’s remedies under this Section 3.02 are in addition to and not in lieu of any and all other legal and
equitable remedies available to SHMC upon LE’s breach of this Agreement. 
 3.03 Obligations on Termination. Upon
termination of this Agreement LE will return to SHMC, as soon as reasonably practicable, all equipment or other property of SHMC, whether owned, leased, or licensed, and LE will pay all outstanding Fees for Services rendered and Expenses incurred
through the date this Agreement is terminated in accordance with its terms. 
 3.04 Termination of an Individual Service by
SHMC. If an Affiliate of SHMC that provides a Service is unwilling or unable to provide the Service and: (i) the Affiliate of SHMC does not provide a similar service to SHMC or its other Affiliates on terms that are comparable to the
terms of this Agreement, and (ii) SHMC is unable to retain a replacement Vendor to provide the Service on terms that are comparable to the terms of this Agreement, SHMC, upon providing 90-days’ prior written notice to LE, may terminate the
Service, but the termination of the Service will have no effect upon the provision of the other Services to LE. If an Affiliate or Vendor that provides a Service is unwilling or unable to allow LE to use the Service under the existing (or
comparable) terms, and SHMC is unable to retain a replacement Vendor to provide the Service on terms that are comparable to the terms of this 

  
 9 

 
Agreement, SHMC, upon providing 90-days’ prior written notice to LE, may terminate the Service, but the termination will have no effect upon the provision of the other Services to LE. If
SHMC is unable to give LE 90-days’ prior written notice to LE due to a Vendor’s refusal to allow LE to use the Service for 90 days, then SHMC will provide as much notice as possible. 

ARTICLE IV. 

CONFIDENTIALITY 
 4.01
Confidential Information. “Confidential Information” means all information, whether disclosed in oral, written, visual, electronic or other form, that (i) one Party (the “Disclosing Party”), its
Affiliates or its Personnel discloses to the other Party (the “Receiving Party”), its Affiliates or its Personnel, (ii) relates to or is disclosed in connection with this Agreement or a Party’s or a Party’s
Affiliate’s business, and (iii) is or reasonably should be understood by the Receiving Party to be confidential or proprietary to the Disclosing Party (whether or not such information is marked “Confidential” or
“Proprietary”). The Disclosing Party’s sales, pricing, costs, inventory, operations, employees, current and potential customers, financial performance and forecasts, and business plans, strategies, forecasts and analyses, as well as
information as to which the Securities and Exchange Commission has granted confidential treatment pursuant to its Rule 406 of Regulation C (the “CTR Information”), are Confidential Information. 

4.02 Treatment of Confidential Information. The Receiving Party will use Confidential Information only in connection with this
Agreement and, except as expressly permitted by this Agreement and subject to the next sentence, will not disclose any Confidential Information for three years from the date of receipt of the Confidential Information. Neither Party will disclose the
CTR Information for a period of ten years from the date or receipt. 
 (a) Limitations. The Receiving Party will (A) restrict
disclosure of the Confidential Information to its and its Affiliates’ Personnel with a need to know the Confidential Information for purposes of performing the Receiving Party’s responsibilities or exercising the Receiving Party’s
rights under this Agreement, (B) advise those Personnel of the obligation not to disclose the Confidential Information or use the Confidential Information in a manner prohibited by this Agreement, (C) copy the Confidential Information only
as necessary for those Personnel who need it for performing the Receiving Party’s responsibilities under this Agreement, and ensure that confidentiality is maintained in the copying process; and (D) protect the Confidential Information,
and require those Personnel to protect it, using the same degree of care as the Receiving Party uses with its own Confidential Information, but no less than reasonable care. 

(b) Liability for Unauthorized Use. The Receiving Party will be liable to the Disclosing Party for any unauthorized disclosure or use of
Confidential Information in violation of this Agreement by its Affiliates and any of its and its Affiliates’ current or former Personnel. 

  
 10 

 (c) Destruction. Without limiting the foregoing, when any Confidential Information is no
longer needed for the purposes contemplated by this Agreement the Receiving Party will, promptly after request of the Disclosing Party, either return such Confidential Information in tangible form (including all copies thereof and all notes,
extracts or summaries based thereon) or certify to the other Party that it has destroyed such Confidential Information (other than electronic copies residing in automatic backup systems and copies retained to the extent required by Applicable Law,
regulation or a bona fide document retention policy). 
 4.03 Exceptions to Confidential Treatment. The obligations under this
Section 4.03 do not apply to any Confidential Information that the Receiving Party can demonstrate (A) was previously known to the Receiving Party without any obligation owed to the Disclosing Party or its Affiliates to hold it in
confidence, (B) is disclosed to third parties by the Disclosing Party or its Affiliates without an obligation of confidentiality to the Disclosing Party or its Affiliate, as applicable, (C) is or becomes available to any member of the
public other than by unauthorized disclosure by the Receiving Party, its Affiliates or its or their Personnel, (D) was or is independently developed by the Receiving Party or its Affiliates or Personnel without use of the Confidential
Information, (E) legal counsel’s advice is that the Confidential Information is required to be disclosed by Applicable Law or the rules and regulations of any applicable Governmental Authority and the Receiving Party has complied with
Section 4.04 (Protective Arrangement) below, or (F) legal counsel’s advice is that the Confidential Information is required to be disclosed in response to a valid subpoena or order of a court or other governmental body of
competent jurisdiction or other valid legal process and the Receiving Party has complied with Section 4.04 (Protective Arrangement) below. 

4.04 Protective Arrangement. If the Receiving Party determines that the exceptions under Section 4.03(E) or
Section 4.03(F) apply, the Receiving Party shall give the Disclosing Party, to the extent legally permitted and reasonably practicable, prompt prior notice of such disclosure and an opportunity to contest such disclosure and shall use
commercially reasonable efforts to cooperate, at the expense of the Receiving Party, in seeking any reasonable protective arrangements requested by the Disclosing Party. In the event that such appropriate protective order or other remedy is not
obtained, the Receiving Party may furnish, or cause to be furnished, only that portion of such Confidential Information that the Receiving Party is advised by legal counsel is legally required to be disclosed and shall take commercially reasonable
steps to ensure that confidential treatment is accorded such Confidential Information. 
 4.05 Ownership of Information. Except
as otherwise provided in this Agreement, all Confidential Information provided by or on behalf of a Party (or its Affiliates) that is provided to the other Party or its Personnel shall remain the property of the disclosing entity and nothing herein
shall be construed as granting or conferring rights of license or otherwise in any such Confidential Information. 

  
 11 

 ARTICLE V. 

INDEMNIFICATION; LIMITATION OF LIABILITY 

5.01 Indemnification by LE. LE will defend, indemnify, and hold harmless SHMC and its Affiliates and their respective
Representatives from and against any and all costs, liabilities, losses, penalties, expenses and damages (including reasonable attorneys’ fees) of every kind and nature arising from third-party claims, demands, litigation, and suits related to
or arising out of: (i) the Shared Agreements, including LE Personnel’s actions and failure or act in connection therewith (collectively, “Shared Agreement Claims”), and (ii) this Agreement (together with the Shared
Agreement Claims, “LE Claims”), except to the extent that such LE Claims are found by a final judgment or opinion of an arbitrator or a court of appropriate jurisdiction to be caused by: (i) a breach of any provision of this
Agreement by SHMC; or (ii) any negligent act or omission, or willful misconduct of SHMC, its Affiliates, or their respective Representatives in performance of this Agreement. Without limiting the foregoing in any way, SHMC may, at its sole
option, cost and expense, take control of any Shared Agreement Claim including, without limitation, the right to engage counsel of its own choice and to defend, prosecute compromise and settle any Shared Agreement Claim. 

5.02 Indemnification by SHMC. SHMC will defend, indemnify, and hold harmless LE and its Affiliates, and their respective
Representatives from and against any and all costs, liabilities, losses, penalties, expenses and damages (including reasonable attorneys’ fees) of every kind and nature arising from third-party claims, demands, litigation, and suits, that:
(i) relate to bodily injury or death of any person or damage to real and/or tangible personal property directly caused by the negligence or willful misconduct of SHMC or its Affiliates during the performance of the Services, or (ii) relate
to the intentional infringement of any copyright or trade secret by an Asset owned by SHMC or its Affiliates and used by SHMC in the performance of the Services (together, “SHMC Claims”). Notwithstanding the obligations set forth
above in this Section 5.02, SHMC will not defend or indemnify LE, its Affiliates, or their respective Representatives to the extent that such SHMC Claims are found by a final judgment or opinion of an arbitrator or a court of appropriate
jurisdiction to be caused by: (a) a breach of any provision of this Agreement by LE; (b) any negligent act or omission, or willful misconduct of LE, its Affiliates, or their respective Representatives in performance of this Agreement; or
(c) with respect to infringement claims: (I) LE’s use of the Asset in combination with any product or information not provided by SHMC; (II) LE’s distribution, marketing or use for the benefit of third parties of the Asset;
(III) LE’s use of the Asset other than as contemplated by this Agreement; or (IV) information, direction, specification or materials provided by or on behalf of LE. LE Claims and SHMC Claims are each individually referred to as a
“Claim.” 
 5.03 Procedure. In the event of a Claim, the indemnified Party will give the indemnifying Party
prompt notice in writing of the Claim; but the failure to provide such notice will not release the indemnifying Party from any of its obligations under this Article except to the extent the indemnifying Party is materially prejudiced by such
failure. Upon receipt of such notice the indemnifying Party will assume and will be entitled to control the defense of the Claim at its expense and through counsel of its choice, and will give notice of its intention to do so to the indemnified
Party within 20 business days of the receipt of such notice from the indemnified Party. The indemnifying Party will not, without the prior written consent of the indemnified Party, (i) settle or compromise any Claim or consent to the entry of
any judgment that does not include as an unconditional term thereof the delivery by the claimant or plaintiff to the indemnified Party of a written release from all liability in respect of the Claim or (ii) settle or compromise any Claim in any
manner that may adversely affect the Indemnified Party other than as a result of money damages or other monetary payments that are indemnified hereunder. The indemnified Party will have the right at its own cost and expense to employ separate
counsel and participate in the defense of any Claim. 

  
 12 

 5.04 Joint Claims. If any third-party claim, demand, litigation, or suit involves
allegations for which both Parties may assert claims for defense and indemnity from each other under this Agreement (“Mixed Claims”); then LE shall defend both Parties and their Representatives from such Mixed Claims at LE’s
sole reasonable expense, provided that SHMC may, upon written notice to LE, take control of the defense of such Mixed Claims.  
 5.05
Independent Obligation. The obligations of each Party to defend, indemnify and hold harmless, the other Parties’ Indemnified Parties under this Section are independent of each other and any other obligation of the Parties under
this Agreement. 
 5.06 Limitation of Liability. EXCEPT FOR (I) EACH PARTY’S INDEMNITY AND DEFENSE OBLIGATIONS AS SET
FORTH IN SECTIONS 5.01, 5.02, AND 5.03 AND OTHER LIABILITIES TO UNAFFILIATED THIRD PARTIES, (II) A PARTY’S BREACH OF ITS CONFIDENTIALITY OBLIGATIONS, AND (III) BREACH OF SECTION 1.11 (OWNERSHIP OF DATA AND
OTHER ASSETS), IN NO EVENT WILL EITHER PARTY, NOR ITS AFFILIATES, CONTRACTORS OR AGENTS BE LIABLE FOR ANY CONSEQUENTIAL, INCIDENTAL, INDIRECT, SPECIAL, OR PUNITIVE DAMAGES, LOSSES OR EXPENSES (INCLUDING BUSINESS INTERRUPTION, LOST BUSINESS, LOST
PROFITS, LOST DATA, LOST SAVINGS, DAMAGES TO SOFTWARE OR FIRMWARE, OR COST OF PROCURING OR TRANSITIONING TO SUBSTITUTE SERVICES), REGARDLESS OF THE LEGAL THEORY UNDER WHICH SUCH LIABILITY IS ASSERTED, AND REGARDLESS OF WHETHER A PARTY HAD BEEN
ADVISED OF THE POSSIBILITY OF SUCH LIABILITY. THE SOLE LIABILITY OF SHMC AND ITS AFFILIATES FOR ERRORS AND OMISSIONS IN THE SERVICES ARE LIMITED AS PROVIDED FOR IN SECTION 1.07 ABOVE, AND FOR ALL OTHER CLAIMS IN ANY MANNER RELATED TO THIS
AGREEMENT ARE LIMITED TO THE PAYMENT OF DIRECT DAMAGES, NOT TO EXCEED (FOR ALL CLAIMS IN THE AGGREGATE) THE FEES RECEIVED BY SHMC UNDER THIS AGREEMENT DURING THE SIX MONTHS PRECEDING THE DATE SUCH CLAIM AROSE. NOTWITHSTANDING ANYTHING IN THIS
AGREEMENT TO THE CONTRARY, SHMC WILL NOT BE LIABLE FOR DAMAGES CAUSED BY SHMC’S VENDORS; HOWEVER, TO THE EXTENT PERMITTED IN A VENDOR AGREEMENT, SHMC WILL PASS THROUGH TO LE APPLICABLE RIGHTS AND REMEDIES UNDER THE RESPECTIVE VENDOR AGREEMENT.

 ARTICLE VI. 

MISCELLANEOUS 
 6.01
Expenses. In addition to the fees state herein, unless otherwise expressly stated herein, LE will reimburse SHMC for all other reasonable out-of-pocket expenses actually incurred in its performance of the Services
(“Expenses”). To the extent reasonably practicable, SHMC will provide LE with notice of such Expenses prior to incurring them. If directed by SHMC, LE will pay directly any or all Vendors providing Services to or for the benefit of
LE. The cost of all third-party Personnel used to perform the Services hereunder will be reimbursed by LE on a cost plus five percent (5%) basis. Except as otherwise provided for in this Agreement, each Party will bear its own expenses with
respect to the transactions contemplated by this Agreement. 

  
 13 

 6.02 Vendor Agreements. The Parties anticipate that SHMC will be relying upon its
and its Affiliates existing agreements with third parties (including the Shared Agreements) to provide certain of the Services described herein (“Vendor Agreements”) and that the Parties have assumed that SHMC’s and/or its
Affiliates’ Vendor under each Vendor Agreement will permit SHMC and/or its Affiliates to procure goods, services and/or license software, as applicable under such Vendor Agreement, on behalf of LE, at no additional cost, as if LE were an
affiliate of SHMC and/or its Affiliates under such Vendor Agreement, and will permit LE to procure such goods, services and/or licensed software directly from the Vendor, in the case of Shared Agreements. If: (a) SHMC’s or its
Affiliates’ costs, fees, or expenses increase under the terms of such Vendor Agreements, or (b) the Vendor demands or is entitled to additional costs, fees, or expenses now or in the future, as a result of LE receiving benefits under such
Agreement, then, in addition to all other amounts due hereunder, LE shall be liable for its proportionate share of all increased amounts under subsection (a) and all of the increased amounts under subsection (b), in each case as such amounts
are determined by SHMC in Good Faith. SHMC will notify LE once it learns of any increased amounts due under the immediately foregoing sentence, and will work with the Vendor to try to mitigate such cost increase. To the extent any such Vendor
Agreement includes early termination fees (or similar charges, “Termination Fees”), LE will be solely responsible for any such Termination Fees SHMC or its Affiliates incur as a result of the Separation of LE and/or LE ceasing to
use the Services under this Agreement. 
 6.03 Computer Access. If either Party, its Affiliates or its Personnel are given
access, whether on-site or through remote facilities, to any communications, computer, or electronic data storage systems of the other Party, its Affiliates or its Personnel (each an “Electronic Resource”), in connection with this
Agreement, then the Party on behalf of whom such access is given will ensure that its Personnel’s use of such access shall be solely limited to performance or exercise of, such Party’s duties and rights under this Agreement, and that such
Personnel will not attempt to access any Electronic Resource other than those specifically required for the performance of such duties and/or exercise of such rights. The Party given access will limit such access to those of its and its
Affiliates’ Personnel who need to have such access in connection with this Agreement, will advise the other Party in writing of the name of each of such Personnel who will be granted such access, and will strictly follow all security rules and
procedures for use of such Electronic Resources. All user identification numbers and passwords disclosed to a Party’s Personnel and any information obtained by such Party’s Personnel as a result of its access to, and use of the other
Party’s, its Affiliates’ or its Personnel’s Electronic Resources will be deemed to be, and will be treated as, Confidential Information of the Party on behalf of whom such access is granted. Each Party will reasonably cooperate with
the other Party in the investigation of any apparent unauthorized access by the other Party, its Affiliates, or its Personnel to any Electronic Resources or unauthorized release of Confidential Information. Each Party will promptly notify the other
Party of any actual or suspected unauthorized access or disclosure of any Electronic Resource of the other Party, its Affiliates, or its Personnel. 

  
 14 

 6.04 Amendment; No Waiver. The terms, covenants and conditions of this Agreement
may be amended, modified or waived only by a written instrument signed by both Parties, or in the event of a waiver, by the Party waiving such compliance. Any Party’s failure at any time to require performance of any provision will not affect
that Party’s right to enforce that or any other provision at a later date. No waiver of any condition or breach of any provision, term or covenant contained in this Agreement, whether by conduct or otherwise, in any one or more instances will
be deemed to be or construed as a further or continuing waiver of that or any other condition or of the breach of that or another provision, term or covenant of this Agreement. 

6.05 Assignment. LE may not assign its rights or obligations under this Agreement without the prior written consent of SHMC,
which consent may be withheld in SHMC’s absolute discretion. A Stockholding Change will constitute an assignment of this Agreement by LE for which assignment SHMC’s prior written consent will be required. SHMC may freely assign its rights
and obligations under this Agreement to any of its Affiliates without the prior consent of LE; provided that any such assignment will not relieve SHMC of its obligations and liabilities hereunder. This Agreement will be binding on, and will
inure to the benefit of, the permitted successors and assigns of the Parties. 
 6.06 Notices. All notices, requests, demands,
waivers and other communications required or permitted to be given under this Agreement must be in writing and will be deemed to have been duly given (i) when delivered by hand, (ii) three (3) Business Days after it is mailed,
certified or registered mail, return receipt requested, with postage prepaid, (iii) on the same Business Day when sent by facsimile or electronic mail (return receipt requested) if the transmission is completed before 5:00 p.m. recipient’s
time, or one (1) Business Day after the facsimile or email is sent, if the transmission is completed on or after 5:00 p.m. recipient’s time or (iv) one (1) Business Day after it is sent by Express Mail, Federal Express or other
courier service specifying same day or next day delivery, as follows (or at such other address for a Party as shall be specified in a notice given in accordance with this Section 6.07): 

 

			
	If to SHMC, to:	  	Sears Holdings Management Corporation
		  	3333 Beverly Road
		  	Hoffman Estates, Illinois 60179
		  	Attn.: Larry Meerschaert
		  	Facsimile: (847) 286-4908
		  	Email: Larry.Meerschaert@searshc.com
		
	With a copy to:	  	Sears Holdings Corporation
		  	3333 Beverly Road
		  	Hoffman Estates, Illinois 60179
		  	Attn.: General Counsel
		  	Facsimile: (847) 286-2471
		  	Email: Dane.Drobny@searshc.com

  
 15 

			
		
	If to LE, to:	  	Lands’ End, Inc.
		  	5 Lands’ End Lane
		  	Dodgeville, Wisconsin 53595
		  	Attn.: Brian Leek
		  	Facsimile: (608) 935-4470
		  	Email: Brian.Leek@landsend.com
		
	With a copy to:	  	Lands’ End
		  	5 Lands’ End Lane
		  	Dodgeville, Wisconsin 53595
		  	Attn.: General Counsel
		  	Facsimile: 608-935-6550
		  	Email: Karl.Dahlen@landsend.com

 6.07 Publicity. All publicity regarding this Agreement is subject to Section 14.5
(Public Announcements) of the Separation Agreement. 
 6.08 Survival. Each term of this Agreement that would, by its nature,
survive the termination or expiration of this Agreement will so survive, including the obligation of either Party to pay all amounts accrued hereunder and including the provisions of Section 1.05 (Transition Services Shared Agreements),
Section 1.11 (Ownership of Data and Other Assets), Article IV (Confidentiality), Article V (Indemnification; Limitation of Liability), Section 6.04 (Computer Access), Section 6.08 (Publicity),
Section 6.13 (Equitable Relief), Section 6.15 (Fair Construction), Section 6.16 (No Agency), Section 6.17 (Construction and Interpretation), Section 6.19 (Dispute Resolution), and
Section 6.20 (Governing Law; Jurisdiction) . 
 6.09 No Third Party Rights. Except for the indemnification rights
under this Agreement of any SHMC or LE indemnitee in their respective capacities as such, this Agreement is intended to be solely for the benefit of the Parties and is not intended to confer any benefits upon, or create any rights in favor of, any
person other than the Parties. 
 6.10 Severability. If any provision of this Agreement is declared by any court of competent
jurisdiction to be illegal, invalid, void or unenforceable, such provision will (to the extent permitted under Applicable Law) be construed by modifying or limiting it so as to be legal, valid and enforceable to the maximum extent compatible with
Applicable Law, and all other provisions of this Agreement will not be affected and will remain in full force and effect. 
 6.11
Entire Agreement. This Agreement (including the Exhibits, Appendixes and Schedules hereto) constitutes the entire agreement between the Parties hereto and supersedes all prior agreements and understandings, oral and written, between
the Parties hereto with respect to the subject matter hereof. 
 6.12 Equitable Relief. Each Party acknowledges that any breach
by a Party of Section 4 (Confidential Information), Section 1.11 (Ownership of Data and Other Assets) and Section 6.04 (Computer Access) of this Agreement may cause the non-breaching Party and its Affiliates
irreparable harm for which the non-breaching Party and its Affiliates have no adequate remedies at law. Accordingly, in the event of any actual or threatened default in, or 

  
 16 

 
breach of the foregoing provisions, each Party and its Affiliates are entitled to seek equitable relief, including specific performance, and injunctive relief; in addition to any and all other
rights and remedies at law or in equity, and all such rights and remedies shall be cumulative. A Party seeking such equitable relief is not obligated to comply with Section 6.19 (Dispute Resolution) and may seek such relief regardless of
any cure rights for such actual or threatened breach. Each Party waives all claims for damages by reason of the wrongful issuance of an injunction and acknowledges that its only remedy in that case is the dissolution of that injunction. Any
requirements for the securing or posting of any bond with such remedy are waived. 
 6.13 Force Majeure. Neither Party will be
responsible to the other for any delay in or failure of performance of its obligations under this Agreement, to the extent such delay or failure is attributable to any act of God, act of terrorism, fire, accident, war, embargo or other governmental
act, or riot; provided, however, that the Party affected thereby gives the other Party prompt written notice of the occurrence of any event which is likely to cause (or has caused) any delay or failure setting forth its best estimate of the length
of any delay and any possibility that it will be unable to resume performance; provided, further, that said affected Party will use its commercially reasonable efforts to expeditiously overcome the effects of that event and resume performance. 

6.14 Fair Construction. This Agreement will be deemed to be the joint work product of the Parties without regard to the identity
of the draftsperson, and any rule of construction that a document will be interpreted or construed against the drafting Party will not be applicable. 

6.15 No Agency. Nothing in this Agreement creates a relationship of agency, partnership, or employer/employee between SHMC and LE
and it is the intent and desire of the Parties that the relationship be and be construed as that of independent contracting parties and not as agents, partners, joint venturers or a relationship of employer/employee. 

6.16 Construction and Interpretation. In this Agreement (1) “include,” “includes,” and
“including” are inclusive and mean, respectively, “include without limitation,” “includes without limitation,” and “including without limitation,” (2) “or” is disjunctive but not
necessarily exclusive, (3) “will” and “shall” expresses an imperative, an obligation, and a requirement, (4) numbered “Section” references refer to sections of this Agreement unless
otherwise specified, (5) section headings are for convenience only and will have no interpretive value, (6) unless otherwise indicated all references to a number of days mean calendar (and not business) days and all references to
months or years mean calendar months or years, (7) references to $ or Dollars mean U.S. Dollars, and (8) “hereof,” “herein” and “herewith” and words of similar import, unless
otherwise stated, shall be construed to refer to this Agreement as a whole and not to any particular provision of this Agreement. 
 6.17
Condition Precedent to the Effectiveness of this Agreement. This Agreement will not become effective until it has been approved by the Audit Committee of the SHC Board. 

6.18 Dispute Resolution. Except as provided for in Section 6.13 (Equitable Relief), all Disputes related to this
Agreement are subject to Article XI (Dispute Resolution) of the Separation Agreement. 

  
 17 

 6.19 Governing Law; Jurisdiction. (a) Governing Law. This Agreement and all
claims, controversies or causes of action, whether in contract, tort or otherwise, that may be based upon, arise out of or relate to this Agreement or the negotiation, execution, termination, performance or nonperformance of this Agreement
(including any claim, controversy or cause of action based upon, arising out of or relating to any representation or warranty made in or in connection with this Agreement or as an inducement to enter into this Agreement) shall be governed by, and
construed and enforced in accordance with, the federal laws of the United States, including the Lanham Act, and the internal laws of the State of Illinois, without regard to any choice or conflict of law provision or rule (whether of the State of
Illinois or any other jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of Illinois. This Agreement will not be subject to any of the provisions of the United Nations Convention on Contracts for the
International Sale of Goods. 
 (b) Jurisdiction. Each of the Parties hereto irrevocably agrees that all proceedings arising out of
or relating to this Agreement and the rights and obligations arising hereunder, or for recognition and enforcement of any judgment in respect of this Agreement and the rights and obligations arising hereunder brought by the other Party hereto or its
successors or assigns shall be brought, heard and determined exclusively in any federal or state court sitting in Cook County, Illinois. Consistent with the preceding sentence, each of the Parties hereto hereby (a) submits to the exclusive
jurisdiction of any federal or state court sitting in Cook County, Illinois for the purpose of any proceeding arising out of or relating to this Agreement or the rights and obligations arising hereunder brought by any Party hereto and
(b) irrevocably waives, and agrees not to assert by way of motion, defense, counterclaim, or otherwise, in any such proceeding, any claim that it or its property is not subject personally to the jurisdiction of the above-named courts, that the
proceeding is brought in an inconvenient forum, that the venue of the proceeding is improper, or that this Agreement or any of the other transactions contemplated by this Agreement may not be enforced in or by any of the above-named courts. Each
Party agrees that service of process upon such party in any such action or Proceeding shall be effective if notice is given in accordance with Section 6.07 (Notices). 

(c) Waiver of Jury Trial. EACH OF THE PARTIES HERETO HEREBY WAIVES TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW ANY RIGHT IT MAY
HAVE TO A TRIAL BY JURY WITH RESPECT TO ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT. EACH OF THE PARTIES HERETO HEREBY (A) CERTIFIES THAT NO
REPRESENTATIVE, AGENT OR ATTORNEY OF THE OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT HAS BEEN INDUCED TO
ENTER INTO THIS AGREEMENT AND THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT, AS APPLICABLE, BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 6.20(c). 

  
 18 

 6.20 Counterparts. This Agreement may be executed and delivered (including by
facsimile or other electronic transmission (e.g., .pdf file) in counterparts, and by the Parties in separate counterparts, each of which when executed shall be deemed to be an original, but all of which taken together shall constitute one and the
same agreement. 
 IN WITNESS WHEREOF, the parties have caused their respective duly authorized representatives to execute this
Agreement effective as of the Effective Date. 
  

													
	LANDS’ END, INC.	 	SEARS HOLDINGS MANAGEMENT CORPORATION
					
	By:	 	  
	 		 	By:	 	  

	Name:	 	  
	 		 	Name:	 	  

	Its: Chief Executive Officer	 	Its:	 	  

  
 19 

 Appendix #1 

GLOSSARY 
 Definitions. The
following defined terms will have the meaning ascribed to them below. Other terms are defined in the body of this Agreement. All defined terms include the singular and the plural form of such terms. 

(a) “Affiliate” means (solely for purposes of this Agreement and for no other purpose) (i) with respect to LE, its
Subsidiaries, and (ii) with respect to SHMC SHC and its Subsidiaries; provided, however, that except where the context indicates otherwise, for purposes of this Agreement, from and after the Effective Time (1) no SHC Entity
shall be deemed to be an Affiliate of any LE Entity and (2) no LE Entity shall be deemed to be an Affiliate of any SHC Entity. 
 (b)
“Ancillary Agreements” has the meaning ascribed to it in the Separation Agreement. 
 (c) “Applicable Law”
means all applicable common law, laws, ordinances, regulations, rules, and court and administrative orders and decrees of all national, regional, state, local and other governmental units that have jurisdiction in the given circumstances. 

(d) “Business Day” means any day that is not a Saturday, a Sunday or any other day on which banks are required or authorized
by Applicable Law to be closed in New York, New York. 
 (e) “Competitor” has the meaning ascribed to it in the Separation
Agreement. 
 (f) “Competitor Affiliates” has the meaning ascribed to it in the Separation Agreement. 

(g) “Cross Default Agreements” means the Ancillary Agreements except the Co-Location and Services Agreement. 

(h) “Dispute” has the meaning ascribed to it in the Separation Agreement. 

(i) “Good Faith” means honesty in fact and the observance of reasonable commercial standards of fair dealing in accordance
with Applicable Law. 
 (j) “LE Entities” has the meaning ascribed to it in the Separation Agreement. 

(k) “Personnel” means the officers, directors, employees, agents, suppliers, licensors, licensees, contractors,
subcontractors, advisors (including attorneys, accountants, technical consultants or investment bankers) and other representatives, from time to time, of a Party and its Affiliates; provided that the Personnel of the LE Entities shall not be
deemed Personnel of the SHC Entities and the Personnel of the SHC Entities shall not be deemed Personnel of the LE Entities. 
 (l)
“SHC” means Sears Holdings Corporation. 
 (m) “SHC Entities” has the meaning ascribed to it in the
Separation Agreement. 
 (n) “Subsidiaries” has the meaning ascribed to it in the Separation Agreement. 

  
 20 

 (o) “Representatives” means Personnel, partners, shareholders, and members. 

(p) “SHC Board” has the meaning ascribed to it in the Separation Agreement. 

(q) “Stockholding Change” has the meaning ascribed to it in the Separation Agreement. 

(r) “Vendor” means any third party provider contracted by SHMC or its Affiliates or, in the case of “Shared
Agreements”, by LE. 

  
 21 

 Appendix #2 

Transition Services 
  

					
	 Service or Business Area
	  	 Services
	  	 Fees

	 Tax

(Excludes Property Tax
   and
Payroll Tax)
	  	 Fixed Fee Tax Services
  

1.      Federal income tax

 
 a.      Prepare and
coordinate filing return
 b.      Prepare estimated tax and extension filings

c.      Prepare LIFO tax calculations

d.      Prepare supporting workpapers

e.      Prepare tax elections

f.       Foreign tax credit calculations/Form 5471 preparation

 
 2.      State
income tax
  

a.      Prepare and coordinate filing returns

b.      Prepare estimated tax and extension filings

c.      Prepare supporting workpapers

d.      Prepare tax allocations for periods when part of SHC unitary returns

 
 3.      Financial
Accounting
  

a.      Quarterly tax provision, effective tax rate calculations,
tax accounting
journal entry support
 b.      Analysis of uncertain tax positions and quarterly tax
reserve calculations and journal entry support (if necessary)
 c.      Tax footnote
disclosures for Form 10-K and Form 10-Qs
 d.      Return-to-accrual calculations and
necessary journal entry support
  

4.      Sales and use tax

 
 a.      Prepare and
coordinate filing returns
 b.      Maintain tax tables in POS system (if continue to
use Sears POS system)
  

5.      Business license filings (state and local, not including state registrations of
business name or LE entity)
 6.      Gross receipts tax filings and accrual
estimates
 7.      Annual report/franchise tax filings
	  	 Fixed Fee Tax Services – Annual Fee

 
  
  

Estimated tax (1b, 2b) $36,000
 Other FIT (1a,
c-f)     $56,250
 Other SIT (2a, c-d)   $31,500

Fin Accting (3a-d)   $57,000
 Other (4-7)                 $146,440

			
		  	 Per-Hour Tax Services
  

1.      Audit support

2.      Preparation of accounting method changes

3.      $10,000 cash receipts reporting (when necessary; based on information provided
by business)
 4.      Federal excise tax return (if applicable)

5.      Maintain tax tables in POS system (if new POS system implemented)

6.      Register new locations for sales tax and business licenses
	  	 Per-Hour Tax Services
  

 
 $150/hour

  
 Appendix #2 Page A
– 1 

					
	 Service or Business Area
	  	 Services
	  	 Fees

		  	 7.      IT/POS support for sales tax reporting

8.      Transition tax functions from SHMC to LE

 
 Lands’ End Responsibilities

 
 Anything not listed above as under the Fixed Fee or Per-Hour Tax Services headings,
including:
  

1.      Foreign tax compliance/audits

2.      Tax legal services

3.      Tax software licenses (e.g., income tax reporting, sales tax) Use of software
applications other than those used by SHMC may result in an increase in SHMC’s fees relating to those services.

4.      Providing data necessary to report any available employment-related tax credits
(e.g., WOTC) either directly or through a third party
	  	 Service Cost Increases
  

If SHMC’s cost of service increase due to change in business or legal requirements, the fees herein will be equitably adjusted to reflect increase in SHMC
costs to provide Services (if any).
  
 Out-of-

Pocket Costs
  

Travel, and other expenses and third party fees charged-through at cost.

	COMPLIANCE	  		  	
			
	 Corporate Compliance
	  	Provide the services of SHMC’s Ethics Hotline vendor for call answering and case management for LE’s Ethics Hotline.	  	$10,000 per year.
			
	 Global Compliance
	  	 Social compliance auditing of the factories producing merchandise for Lands’ End to ensure compliance with local law, Lands’ End
policies with respect to issues such as child labor, wages, hours, benefits, pay, discrimination, harassment, environmental, health and safety.
  

Social compliance audits services include:
  

-Identify the audit cycle for each LE factory

-Invoice and collect payment for the audit before it is conducted

-Conduct regular audits according to the GC audit schedule

-Conduct supplemental audits as may be requested LE for follow up on compliance issues

-Send audit results to the vendor, factory, and LE after each audit

-Record the corrective action plan submitted by the vendor

-Discuss audit results with vendor/factory when requested by LE
  

Additional services would include:
  

-Use of the database for registration of LE vendors and factories

-Registration of the vendors/factories with LE brand for Sears.

-Managing a program to determining whether and when a LE factory may have basis for exemption from auditing

- Coverage under the Worker Safety programs

-Database reporting
 -Live
training services provided to LE vendors/factories on LE social compliance standards
 -Prepare content for LE policy manuals

-Perform database research on LE factories when required to respond to media inquiries
	  	$25,000 per year

  
 Appendix #2 Page A
– 2 

					
	 Service or Business Area
	  	 Services
	  	 Fees

	LOGISTICS & DISTRIBUTION	  		  	
	 Transportation
	  		  	
		  	 Customer Direct Transportation
  

•    Direct-to-customer shipping services under SLS’s master agreement with Parcel
Delivery Carrier
  

•    Returns pickup services from LE customers under SLS’s agreement with Customer
Returns Carrier
	  	At SLS’s cost. Annual volume rebates earned will be shared with LE as prior to Separation.
			
	INVENTORY MANAGEMENT	  		  	
	 Vendor Management
	  		  	
			
		  	Vendor On-Boarding Support	  	$1,100 per year, payable in monthly installments
			
		  	Financial Planning business support and technical support	  	$1,500 per year, payable in monthly installments
			
	IT SERVICES	  		  	
	 Software and Data Services
	  	 •    LE Subscription and Support (S&S) for existing non-operating
system software
  

•    LE new software purchases and 37 months of S&S
	  	 $631,741.04
 (plus tax)

per year, payable in
 monthly installments

			
		  	 Mainframe License Charge (MLC): Currently paid through 11/30/14
  

•    These monthly charges cover LE’s mainframe capacity usage
	  	 $133,501/mo.
 (plus tax)

Subject to increase or decrease based on actual mainframe capacity usage.

			
		  	 Software Maintenance Services continue through 9/30/15
  

•    These charges are for software maintenance on operating system products.
	  	 $65,651.59
 (plus tax)

per year, payable
 in monthly installments

  
 Appendix #2 Page A
– 3 

 Appendix #3 

EFFECTIVE DATE 

  
 25 

 Appendix #4 

CONTACT PERSONS 
 For Lands’ End:

 Brian Leek 
 Brian.leek@landsend.com 

Fax: (608) 935-4470 
 For Sears Holdings Management Corp.:

 Larry Meerschaert 
 Larry.Meerschaert@searshc.com 

Fax: (847) 286-4908 

  
 26 

 Appendix #5 

SHARED AGREEMENTS 
 SHMC’s current
agreements to be extended to LE for performance of the following described services: 
  

					
	 Contract
	  	 Current Contract
End Date
	  	
Contract will
continue to be
made available
to LE for use
beyond the TSA
Service
Period?

	 Contract for small package customer delivery
	  	3/28/2015, plus renewals	  	Yes
	 Contract for customer returns parcel pickup and transportation
	  	10/21/2016	  	No
	 Contract for Software licensing and maintenance (operating system and non-operating system); mainframe data processing capacity and
usage
	  	9/30/2015; 10/31/2015	  	Yes
	 Contract for software licensing and maintenance services; business software for a wide range of applications and database
products
	  	12/21/2015	  	No
	 Contract for employee travel – car rental
	  	1/31/2015	  	No
	 Contract for customer large item delivery service
	  	7/31/2015	  	No
	 Contract for employee Relocation Services
	  	6/28/2015	  	No
	 Contract for employee travel—airline
	  	11/30/2014	  	No
	 Contract for employee travel—airline
	  	10/31/2015	  	No
	 Contract for employee travel—airline
	  	12/31/2014	  	No
	 Contract for employee travel – Hotel RFP execution and rate audit services
	  	9/30/2016	  	No
	 Contract for social media business website subscription and services
	  	2/28/2015	  	No
	 Contract for specialty consumer marketing data analysis service
	  	3/31/2015	  	No

  
 27 

					
	 Contract for employee outplacement support services
	  	3/31/2016	  	No
	 Contract for state-specific sales tax software license
	  	12/31/2014	  	No
	 Contract for print materials and printing services, including pre-press creative services, photography for print production, catalog
production, forms and labels, freight to postal system
	  	1/31/2017	  	Yes
	 Contract for print materials and print production, catalogs, direct mail production, freight to postal system
	  	12/31/2015	  	No
	 Contract for network hardware and software maintenance services including on-site support
	  	6/30/2014	  	No
	 Contract for software hosting and services of web analytics and reporting providing website traffic data at various levels
	  	None	  	No
	 Contract for software as a service providing access to test and optimization software for use on websites for performing testing and
optimization of online campaigns
	  	None	  	No
	 Contract for marketing technology and services to manage audience, personalize consumer experiences, and create customer relationships.
Includes customer data integration, multichannel marketing services, infrastructure management services and consulting. Also provides segmentation products, domestic fraud and risk mitigation products and online advertising products.
	  	1/31/2016	  	No

  
 28

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