Document:

Form of Tax Sharing Agreement

 Exhibit 10.9 
 FORM OF 
 TAX SHARING AGREEMENT 

This Tax Sharing Agreement (the “Agreement”), dated as of this
            day of             , 2012, is by and among Sears Holdings Corporation, a Delaware corporation (“Sears
Holdings”), and Sears Hometown and Outlet Stores, Inc., a Delaware corporation (“SHO”), and all of its direct and indirect Subsidiaries (SHO and its present and future Subsidiaries shall be collectively referred to herein as the
“SHO Companies”). 
 WHEREAS, one or more of the SHO Companies is a member of the affiliated group of corporations of
which Sears Holdings is the common parent corporation and which files a consolidated federal income tax return and combined and consolidated state tax returns; 
 WHEREAS, following the Closing Date (as such term is defined in the Separation Agreement dated             , 2012), such SHO Companies will no
longer be included in the affiliated group of corporations (within the meaning of Section 1504 of the Code) of which Sears Holdings is the common parent; and 
 WHEREAS, Sears Holdings and the SHO Companies desire to set forth their agreement regarding the allocation of taxes, the filing of tax returns, the administration of tax contests and other related tax
matters. 
 NOW, THEREFORE, in consideration of the mutual obligations and undertakings contained herein, the parties agree as
follows: 
 ARTICLE I 
 DEFINITIONS 
 As used in this Agreement, the following terms shall
have the following meanings (such meanings to be equally applicable to both the singular and the plural forms of the terms defined): 
 “Affiliate” means, with respect to any specified person, a person that directly or indirectly, through one or more intermediaries, controls, is controlled by, or is under common control with,
the specified person. 
 “Code” means the Internal Revenue Code of 1986, as amended, or any successor thereto, as in
effect with respect to the taxable period in question. 
 “Consolidated Group” means the affiliated group of
corporations (within the meaning of Section 1504 of the Code) of which Sears Holdings is the common parent (and any successor group). 
 “Final Determination” shall mean the final resolution of liability for any Tax with respect to a taxable period (i) by Internal Revenue Service Form 870 or 870-AD (or any successor forms
thereto), on the date of acceptance by or on behalf of the Internal Revenue Service (the “IRS”), or by a comparable form under the laws of other jurisdictions; except that a Form 870 or 870-AD or comparable form that reserves (whether by
its terms or by operation of the law) the right of the taxpayer to file a claim for a refund and/or the right of the Taxing Authority to assert a further 

 
deficiency shall not constitute a Final Determination; (ii) by a decision, judgment, decree, or other order by a court of competent jurisdiction, which has become final and may not be
appealed; (iii) by a closing agreement or accepted offer in compromise under Section 7121 or 7122 of the Code, or comparable agreements under the laws of other jurisdictions; (iv) by any allowance of a refund or credit in respect of
an overpayment of Tax, but only after the expiration of all periods during which such refund may be recovered (including by way of offset) by the Taxing Authority jurisdiction; or (v) by any other final disposition, including by reason of the
expiration of the applicable statute of limitations. 
 “Member” has the meaning assigned in Treasury Regulation
Section l.1502-1. 
 “Post-Closing Tax Period” means any taxable period beginning after the Closing Date and, with
respect to a taxable period that begins on or before such date and ends thereafter, the portion of such taxable period beginning after the Closing Date. 
 “Pricing Adjustment” shall mean an adjustment by a Taxing Authority of any transfer pricing arrangement or other intercompany transaction between Sears Holdings or any of its Subsidiaries (on
the one hand) and any of the SHO Companies (on the other hand) with respect to any Post-Closing Tax Period. 
 “Pre-Closing
Tax Period” means any taxable period ending on or before the Closing Date and, with respect to a taxable period that begins on or before such date and ends thereafter, the portion of such taxable period ending on the Closing Date. 

“Pre-Closing Taxes” means any Taxes that are imposed on, allocated or attributable to or incurred or payable for any
Pre-Closing Tax Period, provided that Pre-Closing Taxes shall be computed without regard to the carryback of any Tax Benefit Item from a Post-Closing Tax Period. For purposes of calculating “Pre-Closing Taxes”, any liability for
Taxes attributable to a Tax period that begins before and ends after the Closing Date shall be apportioned between the portion of such period ending on such date and the portion of such period beginning after such date (a) in the case of real
and personal property Taxes, by apportioning such Taxes on a per diem basis and (b) in the case of all other Taxes, on the basis of a closing of the books, provided, that exemptions, allowances or deductions that are calculated on an annual
basis shall be apportioned on a per diem basis. 
 “Separate Return Taxable Income” means, with respect to each
taxable period or portion thereof and each state or locality for which the allocation is being computed, the amount of income calculated by multiplying the separate entity’s or group of entities’ (as applicable) tax base for that state or
locality by the State Group’s apportionment formula for that state or locality, and taking into consideration nonapportionable items of income for that separate entity or group of entities (as applicable). If during any taxable period an SHO
Company ceases to be a State Affiliated Company in any state or locality, the “Separate Return Taxable Income” for such taxable period in such state or locality shall be calculated as if the taxable period of such SHO Company ended on the
date that such SHO Company ceased to be a State Affiliated Company in such state or locality. 

  
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 “State Affiliated Companies” means all entities that Sears Holdings
determines are included in a State Combined or Consolidated Return or that any jurisdiction determines under applicable law are included in a State Combined or Consolidated Return.  

“State Combined or Consolidated Return” means a single state or local Tax Return filed for (i) one or more of Sears
Holdings and its Subsidiaries as well as (ii) one or more SHO Companies. 
 “State Group” means any group of
corporations filing a State Combined or Consolidated Return. 
 “Subsidiary” means a corporation, limited liability
company, partnership or other entity, whether or not such entity is treated as such for tax purposes. 
 “Tax” or
“Taxes” means any and all forms of taxation, whenever created or imposed by a Taxing Authority, and, without limiting the generality of the foregoing, shall include net income, alternative or add-on minimum, estimated, gross income, sales,
use, ad valorem, gross receipts, value added, franchise, profits, license, transfer, recording, withholding, payroll, employment, excise, severance, stamp, occupation, premium, property, windfall profit, custom duty or other tax, governmental fee or
other like assessment or charge of any kind whatsoever, together with any related interest, penalties or other additions to tax, or additional amounts imposed by any such Taxing Authority. 

“Taxing Authority” means a national, foreign, municipal, state, federal or other governmental authority responsible for the
administration of any Tax. 
 “Tax Benefit Item” means any net operating loss, unused foreign Tax credit, unused
charitable deduction, unused capital loss, or similar unused Tax benefit item arising with respect to the SHO Companies in a given taxable period, computed as though the SHO Companies had independently filed a federal, state or local Tax Return for
such taxable period including all of the SHO Companies. 
 “Tax Controversy” means any pending or threatened audit,
dispute, suit, action, proposed assessment or other proceeding relating to Taxes. 
 “Tax Return” means any return,
filing, questionnaire or other document, including requests for extensions of time, filings made with estimated Tax payments, claims for refund and amended returns, that may be filed for any taxable period with any Taxing Authority in connection
with any Tax (whether or not a payment is required to be made with respect to such filing) or any information reporting requirement. 
 ARTICLE II 
 PREPARATION AND FILING OF TAX RETURNS 

Section 2.01. Sears Holdings Consolidated Group Tax Returns. 

Sears Holdings shall timely prepare and file (or cause to be timely prepared and filed) all federal income Tax Returns for the
Consolidated Group. The SHO Companies shall provide to Sears Holdings all financial data and any other information and documentation reasonably requested by Sears Holdings in connection with the filing of any such federal income Tax Returns.

  
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 Section 2.02. State Combined or Consolidated Returns. 

(a) Sears Holdings or one or more of its Subsidiaries shall prepare all State Combined or Consolidated Returns. To the extent permitted
by law, Sears Holdings (or one of its Subsidiaries) shall timely file each such State Combined or Consolidated Return. If Sears Holdings (or one of its Subsidiaries) is not permitted to file any such State Combined or Consolidated Return, an SHO
Company shall file such State Combined or Consolidated Return. The person responsible pursuant to the forgoing for filing any such State Combined or Consolidated Return shall timely pay (or cause to be timely paid) any Tax that is due in connection
with any such State Combined or Consolidated Return. The SHO Companies shall provide to Sears Holdings all financial data and any other information and documentation reasonably requested by Sears Holdings in connection with the preparation of any
such State Combined or Consolidated Return. 
 (b) To the extent reasonably requested by the SHO Companies, Sears Holdings shall
(i) consult with the SHO Companies regarding the preparation of a State Combined or Consolidated Return if the SHO Companies are responsible for any portion of the Taxes reported thereon and (ii) deliver any such State Combined or
Consolidated Return to the SHO Companies for review and comment no later than five days prior to the date on which such State Combined or Consolidated Return is due. Sears Holdings shall consider in good faith any changes to such State Combined or
Consolidated Tax Return reasonably requested by the SHO Companies, to the extent that such changes relate to items for which the SHO Companies have responsibility hereunder. 
 Section 2.03. Other Tax Returns of the SHO Companies. The SHO Companies shall timely prepare and file, or cause to be timely prepared and filed, all appropriate Tax Returns relating to all
Taxes attributable to the SHO Companies’ business other than those described in sections 2.01 and 2.02 herein. 
 ARTICLE
III 
 ALLOCATION AND PAYMENT OF CONSOLIDATED FEDERAL TAXES 

Section 3.01. Payment of Consolidated Federal Income Tax. Sears Holdings shall be responsible for all payments of federal
income Tax due with respect to the Consolidated Group. 
 Section 3.02. Carrybacks. In the event any federal Tax
Benefit Item of the SHO Companies for any taxable period after they cease being Members of the Consolidated Group is eligible to be carried back to a taxable period while the SHO Companies were Members of the Consolidated Group, the SHO Companies
shall, where possible, elect to carry such amounts forward to subsequent taxable periods. If the SHO Companies are required by law to carry back any such federal Tax Benefit Item, the SHO Companies shall be entitled to a payment at the time and to
the extent that such Tax Benefit Item reduces the federal income Tax liability of the Consolidated Group. For purposes of computing the amount of the payment described in this section 3.02, one or more federal Tax Benefit Items shall be considered
to have reduced the Consolidated Group’s federal income Tax liability in a given taxable period by an amount equal to the difference, if any, between (i) the amount of the Consolidated Group’s federal income Tax

  
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liability for the taxable period computed without regard to such federal Tax Benefit Item or Items and (ii) the amount of the Consolidated Group’s federal income Tax liability for the
taxable period computed with regard to such federal Tax Benefit Item or Items. For the avoidance of doubt, if the SHO Companies are required to carry back a federal Tax Benefit Item, such federal Tax Benefit Item shall reduce the Consolidated
Group’s federal income Tax liability only after all federal Tax Benefit Items of Sears Holdings have been applied to reduce the Consolidated Group’s federal income Tax liability in such taxable period. Appropriate reconciliation payments
shall be made in the event that it is subsequently determined that a Tax Benefit Item did not reduce the Consolidated Group’s federal income Tax liabilities, including by reason of any such Tax Benefit Item being subsequently disallowed in
whole or in part or by reason of other Tax benefits becoming available. 
 ARTICLE IV 

ALLOCATION AND PAYMENT OF 
 COMBINED/CONSOLIDATED STATE AND LOCAL TAXES 
 Section 4.01.
Payment of Combined/Consolidated State and Local Tax. With respect to Post-Closing Tax Periods, the SHO Companies shall pay to Sears Holdings, or Sears Holdings shall pay to the SHO Companies (in the case of a State Combined or Consolidated
Return filed by an SHO Company, or in the case of payments with respect to Tax Benefit Items pursuant to section 4.02(d)), at the times provided by section 4.03, the amounts determined under section 4.02. 

Section 4.02. Allocation of Combined/Consolidated State and Local Tax. The state and local Tax liability of the SHO Companies
and all the other State Affiliated Companies for each State Combined or Consolidated Return shall be calculated in the following manner: 
 (a) An allocation of Tax (or payment attributable to a state or local Tax Benefit Item) pursuant to this Article IV shall be made to the SHO Companies only if Sears Holdings determines that an SHO Company
has a nexus presence in a state or locality for which the allocation of Tax or payment attributable to a state or local Tax Benefit Item is being determined. If Sears Holdings has no nexus presence in a state or locality, then all Tax or payments
attributable to a state or local Tax Benefit Item shall be allocated to the SHO Companies. 
 (b) Each allocation of Tax
pursuant to this Article IV shall be computed between the SHO Companies as one group and all other State Affiliated Companies as a separate group. 
 (c) Except as otherwise provided herein (including section 7.03), with respect to any State Combined or Consolidated Tax Return that is an income Tax Return, the Tax allocated to the SHO Companies shall
equal the product of (i) the statutory rate imposed by the relevant state or locality for the Tax covered by such Tax Return and (ii) the amount (if any) of positive Separate Return Taxable Income for the SHO Companies with respect to such
Tax Return. For purposes of this section 4.02(c), the SHO Companies’ allocated Tax shall not be reduced by the SHO Companies’ carrybacks and carryovers of state or local Tax Benefit Items from other taxable periods (such items being
addressed by section 4.02(d)). 

  
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 (d) Sears Holdings shall pay to the SHO Companies, in accordance with section 4.03, the
amount, if any, by which one or more state or local Tax Benefit Items of the SHO Companies arising in a Post-Closing Tax Period reduced a State Combined or Consolidated Return Tax liability with respect to any taxable period for which a State
Combined or Consolidated Return is filed by Sears Holdings after the date of this Agreement but only to the extent that Sears Holdings receives the benefit of such reduction (taking into account the provisions of this Agreement). In computing the
amount of the payment under this section 4.02(d), one or more state or local Tax Benefit Items shall be considered to have reduced the State Combined or Consolidated Return Tax liability in a given taxable period by an amount equal to the
difference, if any, between (i) the amount of the State Combined or Consolidated Return Tax liability with respect to the taxable period computed without regard to such state or local Tax Benefit Item or Items and (ii) the amount of the
State Combined or Consolidated Return Tax liability with respect to the taxable period computed with regard to such state or local Tax Benefit Item or Items. Appropriate reconciliation payments shall be made in the event that it is subsequently
determined that a Tax Benefit Item did not reduce the State Combined or Consolidated Return Tax liability in a given taxable period, including by reason of any such Tax Benefit Item being subsequently disallowed in whole or in part or by reason of
other Tax benefits becoming available. In no event shall the amount paid by Sears Holdings under this section 4.02(d) with respect to any state or local Tax Benefit Item exceed the amount that the SHO Companies would have received if they had
independently filed a state or local Tax Return including all of the SHO Companies. SHO shall pay to Sears Holdings, in accordance with section 4.03 herein, the amount, if any, by which one or more state or local Tax Benefit Items of Sears Holdings
or any of its Subsidiaries reduced a State Combined or Consolidated Return Tax liability with respect to any taxable period for which a State Combined or Consolidated Return is filed after the date of this Agreement but only to the extent that an
SHO Company receives the benefit of such reduction (taking into account the provisions of this Agreement). For the avoidance of doubt, the provisions of this section 4.02(d) are subject to section 7.03. 

(e) With respect to any State Combined or Consolidated Return that is not an income Tax Return, the applicable state or local Tax
liability shall be allocated among the SHO Companies and all the other State Affiliated Companies pro rata based on the Tax that would have been paid by the SHO Companies as one group, on the one hand, and all other State Affiliated Companies as a
separate group, on the other hand. 
 Section 4.03. Payment. 

(a) The computation of the state or local Tax allocations, as well as any required payment to and from Sears Holdings, shall be made
within 15 days after Sears Holdings or any of its Affiliates (other than the SHO Companies), or any SHO Company, makes a payment to, or receives a payment credit or offset from, any Taxing Authority pursuant to this Article IV. All decisions
relating to the allocation and payment of Taxes under this Article IV shall be made at the reasonable discretion of Sears Holdings. 
 (b) The same method used for the calculation of estimated Tax for any State Combined or Consolidated Return shall be used to determine the amount of estimated Tax allocated to the SHO Companies. With
regard to any estimated Tax that is calculated based upon income of a prior taxable period, the payments under this Agreement shall also be calculated based upon such income and appropriate adjustments made when the final Tax Return is filed with
respect to such estimated Tax. For estimated Tax calculated in any other manner, the payments under this Agreement shall be determined based upon the principles of section 4.02. 

  
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 Section 4.04. Carrybacks. In the event any state Tax Benefit Item of the SHO
Companies with respect to any taxable period after they cease being State Affiliated Companies is eligible to be carried back to a taxable period while the SHO Companies were State Affiliated Companies, the SHO Companies shall, where possible, elect
to carry such amounts forward to subsequent taxable periods. If the SHO Companies are required by law to carry back any such state Tax Benefit Item, the SHO Companies shall be entitled to a payment to the extent that such a payment would be required
under the terms of section 4.02(d). 
 ARTICLE V 
 PAYMENT OF OTHER TAXES 
 Section 5.01 Other Taxes. All
Taxes of (or with respect to) an SHO Company shall be paid by the SHO Companies, other than (i) Taxes of the Consolidated Group, (ii) Taxes reportable on a Tax Return described in Section 2.02(a) (which the SHO Companies shall pay to
the extent required by Article IV), and (iii) Pre-Closing Taxes. 
 ARTICLE VI 

TAX DEFICIENCIES AND REFUNDS 
 6.01. Pre-Closing Taxes. Sears Holdings shall be responsible for (and shall indemnify the SHO Companies from and against) all Pre-Closing Taxes, including any Pre-Closing Taxes resulting from
(i) any audit, amendment, other change or adjustment to the federal Tax liability of the Consolidated Group and (ii) any audit, amendment, other change or adjustment to a State Combined or Consolidated Return Tax liability with respect to
any Pre-Closing Tax Period. Any refund of Pre-Closing Taxes (whether by payment, credit, offset against other Taxes due or otherwise) shall be for the benefit of (and paid to) Sears Holdings. 

6.02. Post-Closing State Group Taxes. Subject to section 7.03, if as a result of any audit, amendment, other change or adjustment
to the state or local Taxes of any State Group there is an additional amount of such state or local Taxes (other than Pre-Closing Taxes) due and payable or a refund of such state or local Taxes (other than Pre-Closing Taxes) previously paid (whether
by payment, credit, offset against other Taxes due or otherwise), the obligations of the parties shall be redetermined under section 4.02 as if the adjustments made as a result of such audit were included as part of the original Tax Return filed and
any payments made under this Agreement shall be adjusted or reimbursed in accordance with the foregoing. 
 ARTICLE VII

 COOPERATION AND TAX CONTROVERSY 
 Section 7.01. Cooperation. 
 (a) Sears Holdings and the SHO Companies
shall cooperate fully at such time and to the extent reasonably requested by the other party in connection with the preparation and 

  
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filing of any Tax Return or the conduct of any Tax Controversy concerning any issues or any other matter contemplated hereunder. Such cooperation shall include, without limitation, (i) the
retention and provision on demand of books, records, documentation or other information relating to any Tax Return until the later of (x) the expiration of the applicable federal or state statute of limitation (giving effect to any extension,
waiver, or mitigation thereof) and (y) in the event any claim has been made under this Agreement for which such information is relevant, until a Final Determination with respect to such claim; (ii) the filing or execution of any document
that may be necessary or reasonably helpful in connection with the filing of any Tax Return, or claim for a refund of Taxes previously paid, by either party, or in connection with any Tax Controversy addressed in the preceding sentence (including a
requisite power of attorney); and (iii) the use of the parties’ best efforts to obtain any documentation from a governmental authority or a third party that may be necessary or helpful in connection with the foregoing. Each party shall
make its employees and facilities reasonably available on a mutually convenient basis to facilitate such cooperation. 
 (b)
Sears Holdings and the SHO Companies shall use reasonable efforts to keep each other advised as to the status of Tax Controversies involving any issue which could give rise to any liability of the other party under this Agreement. Sears Holdings and
the SHO Companies shall each promptly notify the other of any inquiries by any Taxing Authority or any other administrative, judicial or other governmental authority that relate to any Tax that may be imposed on the other or any Affiliate of the
other that might give rise to any liability under this Agreement. Sears Holdings shall have sole control of any Tax Controversy relating to the Consolidated Group or to any Pre-Closing Taxes. Sears Holdings shall have sole control of any Tax
Controversy relating to any State Combined and Consolidated Return, provided, that in the case of any such Tax Controversy that may affect Taxes for which the SHO Companies have responsibility hereunder, the SHO Companies may participate in such Tax
Controversies at their own expense. If the potential liability of the SHO Companies under this Agreement relating to any Tax Controversy exceeds $500,000, Sears Holdings shall not settle or concede such Tax Controversy without the prior written
consent of the SHO Companies, not to be unreasonably withheld, conditioned or delayed. 
 Section 7.02. Contest
Provisions. Subject to the cooperation provisions in section 7.01, Sears Holdings shall have the right to resolve any difference or disagreement on any matter that arises out of the application and interpretation of this Agreement; provided,
however, that Sears Holdings shall (i) in good faith cooperate and consult with the SHO Companies in an effort to resolve any differences with respect to Sears Holdings’ position with regard to such matter, (ii) in good faith consider
the SHO Companies’ position on such matter and (iii) advise the SHO Companies of the reason for rejecting any such recommendation for alternative positions. 
 Section 7.03. Certain Adjustments. Notwithstanding sections 4.02 and 6.02, in the event there is a Pricing Adjustment with respect to any Tax Return that results in additional taxable income
to Sears Holdings, SHO or any of their respective Subsidiaries (or any tax group that includes any such person), (i) if such adjustment is with respect to a State Combined or Consolidated Tax Return, the adjustments arising from such Pricing
Adjustment shall be disregarded in applying sections 4.02 and 6.02 to the extent necessary in order to put Sears Holdings (and its Subsidiaries) or SHO (and its Subsidiaries), as the case may be, in the same after tax position with respect to such
State Combined or Consolidated Tax Return as such person 

  
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would have occupied if there had been no such additional taxable income (as determined by Sears Holdings in good faith) and (ii) after the application of clause (i) (but without
duplication) or if clause (i) does not apply, as the case may be, (A) SHO shall indemnify Sears Holdings for any additional Tax that Sears Holdings (or any of its Subsidiaries) would otherwise bear as a result of such additional taxable
income and (b) Sears Holdings shall indemnify SHO for any additional Tax that the SHO Companies would otherwise bear as a result of such additional taxable income. The amount of any payment under this section 7.03 shall be increased by any
Taxes incurred by the person receiving such payment as a result of the receipt of such payment. Any payment required under this section 7.03 shall be made within 15 days after the indemnified party makes a payment to any Taxing Authority as a result
of a Pricing Adjustment. In the event that, following a Pricing Adjustment with respect to a Tax Return, Sears Holdings determines that it is appropriate to apply that Pricing Adjustment to another Tax Return or in filing other Tax Returns going
forward, this section 7.03 (and sections 4.02 and 6.02) shall be applied as if a Pricing Adjustment had been made with respect to such other Tax Returns. 
 ARTICLE VIII 
 MISCELLANEOUS 

Section 8.01. Effective Date. This Agreement applies to all matters related to any Tax Returns filed, Taxes paid, adjustments
made in respect of any Tax, and any other matters involving Taxes on or after the date of this Agreement, between or among (i) Sears Holdings or any of its Subsidiaries (other than the SHO Companies) and (ii) the SHO Companies. 

Section 8.02. Complete Agreement. This Agreement constitutes the entire agreement of the parties concerning the subject
matter hereof. Any other agreements, whether or not written, in respect of any Tax between or among Sears Holdings and the SHO Companies shall be terminated and have no further effect. This Agreement may not be amended except by an agreement in
writing signed by the parties hereto. 
 Section 8.03. Governing Law. This Agreement shall be governed by and
construed in accordance with the laws of the State of Illinois without regard to the principles of conflict of laws of the State of Illinois. 
 Section 8.04. Successors and Assigns. A party’s rights and obligations under this Agreement may not be assigned without the prior written consent of the other party. All of the provisions
of this Agreement shall be binding upon and inure to the benefit of the parties and their respective successors and permitted assigns. If any party to this Agreement forms or acquires one or more Subsidiaries which become Members of the Consolidated
Group or a State Affiliated Company, such party will cause any such Subsidiary to be bound by the terms of this Agreement, and this Agreement shall apply to any such Subsidiary in the same manner and to the same extent as the current party.

 Section 8.05. Intended Third Party Beneficiaries. This Agreement is solely for the benefit of the parties to this
Agreement and should not be deemed to confer upon third parties any remedy, claim, liability, reimbursement, claim of action or other right in excess of those existing without this Agreement. 

  
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 Section 8.06. Legal Enforceability. Any provision of this Agreement which is
prohibited or unenforceable in any jurisdiction shall, as to that jurisdiction, be ineffective to the extent of the prohibition or unenforceability without invalidating the remaining provisions. Any prohibition or unenforceability of any provision
of this Agreement in any jurisdiction shall not invalidate or render unenforceable the provision in any other jurisdiction. 

Section 8.07. Expenses. Unless otherwise expressly provided in this Agreement, each party shall bear any and all expenses
that arise from its respective obligations under this Agreement. In the event either party to this Agreement brings an action or proceeding for the breach or enforcement of this Agreement, the prevailing party in such action or proceeding, whether
or not such action or proceeding proceeds to final judgment, shall be entitled to recover as an element of its costs, and not as damages, such reasonable attorneys’ fees as may be awarded in the action or proceeding in addition to whatever
other relief to which the prevailing party may be entitled. 
 Section 8.08. Counterparts. This Agreement may be
signed in any number of counterparts, each of which shall be an original, with the same effect as if the signature thereto and hereto were upon the same instrument. 
 Section 8.09. Change in Law. If, after the date this Agreement is executed, as a result of an amendment to the Code, the promulgation of proposed, temporary or final regulations, the issuance
of a ruling by a Taxing Authority, the decision of any court, or a change in any applicable state or local law, Sears Holdings believes that it is necessary or helpful to amend the provisions of this Agreement in order to preserve the rights and
benefits contemplated herein, each of the parties hereto agrees to negotiate in good faith all such amendments and modifications as shall be necessary or appropriate in order to preserve as nearly as possible for the parties hereto the rights and
benefits contemplated herein. 
 IN WITNESS WHEREOF, the parties have executed and delivered this Agreement as of the date first
written above. 
  

	
	SEARS HOLDINGS CORPORATION
	
	  

	
	SEARS HOMETOWN AND OUTLET STORES
	
	  

  
 Page 10 of 10Separation and Release Agreement

 Exhibit 10.1 
 SEPARATION AND RELEASE AGREEMENT 
 THIS SEPARATION AND RELEASE AGREEMENT (the
“Agreement”) is made and entered into by and between Kenneth Schwarz (the “Employee”) and Primus Telecommunications, Inc. (the “Employer”). 
 WHEREAS, the Employer and the Employee entered into an employment offer letter dated June 17, 2011 (the “Employment Letter”); 

WHEREAS, effective July 1, 2012, the Employee’s employment with the Employer was terminated by the Employer “without
cause” (as defined in the Employment Letter); and 
 NOW THEREFORE, in consideration of the mutual promises contained
herein, it is agreed as follows: 
  

	 	1.	The parties acknowledge and agree that the Employee’s employment with the Employer has been terminated effective July 1, 2012 (the “Termination
Date”). The Employee acknowledges and agrees that the Employer has no obligation to re-employ the Employee at any time in the future and, if the Employee should seek employment with the Employer at some future date, that the Employer may choose
to decline the Employee’s request for future employment, without consequence to the Employer. The Employer agrees that it will not contest the Employee’s eligibility for unemployment compensation benefits. Notwithstanding the foregoing,
nothing in this Section 1 shall prohibit the Employer from responding truthfully to inquiries from any governmental agency or regulatory authority concerning the Employee’s employment with the Employer or the termination thereof.

  

	 	2.	Once this Agreement becomes effective as described in Section 13 below (the “Effective Date”), the Employer shall pay (i) the Employee the amount of
$297,917.00, less applicable deductions and withholdings, which represents six (6) months of the Employee’s current salary, the transaction bonus, and a prorated annual performance bonus, payable in lump sum and commencing on the
Employer’s next regular scheduled pay date after the Effective Date; (ii) provided the Employee timely elects to convert the current Basic Life Insurance policy to an individual policy, the premiums on the Employee’s behalf, for a
period of up to six (6) calendar months, which period shall end on January 31, 2013, and (iii) provided the Employee timely elects to continue health insurance coverage in accordance with the federal Consolidated Omnibus Budget
Reconciliation Act (“COBRA”), the COBRA premiums, on the Employee’s behalf, until the date that is the earlier of (a) six (6) calendar months of insurance coverage, which period shall end on January 31, 2013, and
(b) the date the Employee is eligible for health care coverage under a subsequent employer’s plan ((i), (ii), and (iii) collectively, the “Severance Pay”). The Employee may continue coverage beyond January 31, 2013, at
the Employee’s own cost, in accordance with all applicable COBRA requirements. In the event the Employee commences employment with a subsequent employer during the six (6) month COBRA period, the Employee shall promptly notify the Employer
in writing of the date the Employee commences such employment and shall respond promptly to any reasonable inquiries concerning the Employee’s eligibility for health care coverage under such subsequent employer’s plan. The Employer shall
become obligated to pay the Severance Pay only if the Employee has not revoked this Agreement during the seven-day revocation period referenced in Section 13 below. 

 

	 	3.	A certain portion of the Employee’s unvested Restricted Stock Units (“RSUs”) under the Primus Telecommunications Group, Incorporated Management
Compensation Plan (“Plan”), as amended, will have vested, as of the Termination Date; specifically, 7,602 STIP RSUs as well as the 5,000 LTIP RSUs. You understand and acknowledge that all other unvested RSUs will be terminated as of the
Effective Date. 

	 	4.	As a material inducement to the Employer to enter into this Agreement and in consideration of the Employer’s promise to provide the Severance Pay pursuant to
Section 2 above, the Employee, on behalf of the Employee, the Employee’s heirs, legal representatives, executors, administrators and assigns, hereby irrevocably and unconditionally releases the Employer and all its parent companies,
subsidiaries, affiliates and related entities, together with all of its and their current, former and future employees, directors, partners, members, shareholders, officers, agents, attorneys, representatives, insurers, predecessors, successors,
assigns, and the like, and all persons acting by, through, under or in concert with any of them (collectively, the “Releasees”) from any and all charges, complaints, claims, liabilities, obligations, promises, agreements, controversies,
damages or causes of action, suits, rights, demands, costs, losses, debts and expenses (including attorneys’ fees and costs incurred) of any nature whatsoever, known or unknown, suspected or unsuspected, arising on or before the date the
Employee signs this Agreement, including, but not limited to, any claims arising out of or related to (i) the Employment Letter, (ii) the Employee’s employment with the Employer and the ending of that employment, (iii) any
contract, express or implied, in writing or oral, or (iv) any rights or claims under any federal, state or local statute prohibiting any form of discrimination, including, without limitation, the National Labor Relations Act, Title VII of the
1964 Civil Rights Act, the Age Discrimination in Employment Act, the Older Workers’ Benefit Protection Act, the Virginia Human Rights Act, the Rehabilitation Act of 1973, including Section 504 thereof, the Americans with Disabilities Act,
the Americans with Disabilities Amendments Act of 2008, the Civil Rights Act of 1966 (42 U.S.C. § 1981), the Civil Rights Act of 1991, the Equal Pay Act, the Lilly Ledbetter Fair Pay Act, the Genetic Information Nondiscrimination Act of 2008,
the Family and Medical Leave Act, the Fair Labor Standards Act, the Employee Retirement Income Security Act of 1974, the Immigration Reform and Control Act, the Worker Adjustment and Retraining Notification Act, and the Occupational Safety and
Health Act, all as amended. This release specifically includes, but is not limited to, any claims based upon race, color, age, religion, sexual orientation, creed, sex, national origin, ancestry, alienage, citizenship, nationality, mental or
physical disability, marital status, harassment or any other basis prohibited by law. The Employee further agrees to waive irrevocably any right to recover under any claim that may be filed on the Employee’s behalf by the U.S. Equal Employment
Opportunity Commission (“EEOC”) or any other federal, state or local government entity, relating to the Employee’s employment with the Employer or the ending of that employment. Notwithstanding the foregoing, this Agreement does not:
(i) prohibit or restrict Employee from communicating, providing relevant information to or otherwise cooperating with the EEOC or any other governmental authority with responsibility for the administration of fair employment practices laws
regarding a possible violation of such laws or responding to any inquiry from such authority, including an inquiry about the existence of this Agreement or its underlying facts, or (ii) require Employee to notify the Employer of such
communications or inquiry. 

  

	 	5.	The Employee represents and warrants that the Employee has not (i) filed or otherwise initiated any complaints or charges or lawsuits against the Employer or any
other Releasee with any governmental agency or court, or (ii) assigned or transferred, or purported to assign or transfer, to any person or entity, any claim or any portion thereof or interest therein the Employee has against the Employer or
any other Releasee. 

  

	 	6.	The Employee has returned all Employer property, including without limitation, all equipment, computers/laptops, supplies, documents, files, records, reports,
memoranda, software, credit cards, cardkey passes, identification badges, door and file keys, computer access codes, disks, employee or instructional manuals, and all other physical or personal property the Employee received, prepared or helped to
prepare in connection with the Employee’s employment with the Employer, and all copies, duplicates, reproductions or excerpts thereof, whether such material is in paper form or electronic or recorded format. Employee will keep the Company
provided iPhone providing he pay the Company $200.00 within five (5) business days of execution of this Agreement. Upon receipt of payment, the Company will release the iPhone telephone number to the Employee. 

	 	7.	The Employee agrees that the Employee will not make, or cause to be made, any disparaging or defamatory comments about the Employer or about any other Releasee, nor
will the Employee authorize, encourage or participate with anyone on the Employee’s behalf to make such statements. The Employer agrees that it will not make, or cause to be made, any disparaging or defamatory comments about the Employee or
authorize, encourage or participate with anyone on the Employer’s behalf to make such statements. 

  

	 	8.	The Employee agrees to keep the terms, amount and fact of this Agreement completely confidential, except as may be required by law or legal process (except to the
extent publicly disclosed by the Employer), and except that the Employee may reveal the terms of this Agreement to the Employee’s immediate family and the Employee’s legal, financial and tax advisors, provided that each such individual
agrees not to reveal such information further. 

  

	 	9.	The Employee acknowledges and agrees that the Severance Pay to be provided to the Employee under Section 2 above shall be in lieu of and discharge any obligations
of the Employer to the Employee for any further compensation, severance benefits, or any other expectations of remuneration or benefit on the part of the Employee, except: (i) for the payment of any salary earned but not paid through the
Termination Date, less applicable deductions and withholdings; (ii) for the payment of any accrued but unused paid-time-off as of the Termination Date, less applicable deductions and withholdings; (iii) for the reimbursement of reasonable
business expenses incurred by the Employee prior to the Termination Date, to be paid in accordance with the Employer’s policy for reimbursement of employee business expenses; and (iv) to the extent that the Employee qualifies for benefits
under the terms of any employee benefit or equity incentive plan (the “Equity Plan”) following the Termination Date, which in this case, Employee does not qualify for such benefit. If applicable, the Employee shall continue to be entitled
to any vested benefits that accrued as of the Termination Date pursuant to the Equity Plan, but the Employee shall accrue no further benefits after the Termination Date. 

 

	 	10.	The Employee represents and acknowledges that the Employee (i) has been given a period of forty-five (45) calendar days to consider this Agreement;
(ii) has read and understands the terms of this Agreement; (iii) has been given an opportunity to ask questions of the Employer’s representatives; (iv) understands that this Agreement includes a waiver of all rights and claims
the Employee may have under the Age Discrimination In Employment Act of 1967 (29 U.S.C. §621 et seq.); and (v) has been advised to consult with an attorney prior to signing this Agreement. 

 

	 	11.	The Employee further represents that in signing this Agreement the Employee does not rely, and has not relied, on any representation or statement not set forth in this
Agreement made by any representative of the Employer or any other Releasee with regard to the subject matter, basis or effect of this Agreement or otherwise. 

 

	 	12.	This Agreement is knowingly and voluntarily entered into by all parties. 

  

	 	13.	For a period of seven (7) calendar days after the date the Employee signs this Agreement (which shall not be prior to the Termination Date), the Employee has the
right to revoke this Agreement by delivering written notice of revocation to John D. Filipowicz, General Counsel & CAO, 7901 Jones Branch Drive, Suite 900, McLean, VA 22102 prior to midnight on the seventh (7th) calendar day following
the date on which the Employee signs this Agreement. The Agreement shall not be effective or enforceable, and the Employee shall not be entitled to any Severance Pay, unless and until seven (7) calendar days have elapsed from the date the
Employee signs this Agreement, and the Employee has not revoked the Agreement during that seven (7) calendar day period. 

	 	14.	The Employee covenants and agrees that during the one (1) year period following the Termination Date, the Employee will not knowingly, directly or indirectly, as
principal, agent, or otherwise, anywhere in the world, act in any way to solicit, divert, or take away any customer of the Employer. 

  

	 	15.	This Agreement sets forth the entire agreement between the parties and supersedes any and all prior agreements, understandings or arrangements between the parties as to
the subject matter of this Agreement, except that the following shall survive this Agreement and remain in full force and effect in accordance with their terms: (i) any provision of the Employment Letter that contemplates performance by the
Employee after the Termination Date. 

  

	 	16.	Employee acknowledges that Employee has a legal obligation to refrain from trading in the Employer’s securities while in possession of material non-public
information regarding the Employer will continue after leaving the Employer and that after the Termination Date any transactions by Employee in the Employer’s securities will be effected by Employee independently of the Employer.

  

	 	17.	Employee acknowledges that, even though effective as of the Termination Date, Employee will no longer be an executive officer of the Employer, any transaction by
Employee in the Employer’s securities executed within a period of less than six months of an opposite-way transaction that occurred while Employee was an executive officer of the Employer will continue to be subject to the reporting and
liability provisions of Section 16 of the Securities Exchange Act of 1934, as amended, and the rules promulgated thereunder, and that Employee will remain responsible for complying with such provisions. Employee further acknowledges that,
within 45 days after the end of the Employer’s fiscal year, all former executive officers who conducted unreported transactions in the Employer’s securities during the fiscal year may be required to file a year-end report with the
Securities and Exchange Commission, and that Employee’s failure to respond on a timely basis to a request from the Employer for a written representation that no such filing is due may result in disclosure in the Employer’s Proxy Statement
and Annual Report on Form 10-K that Employee is delinquent with respect to a required report. 

  

	 	18.	You acknowledge that during your employment with the Employer, you had access to trade secrets and other confidential and/or proprietary information (“Confidential
Information”). You agree that you will use your best efforts and utmost diligence to preserve, protect, and prevent the disclosure of such Confidential Information, and that you shall not, either directly or indirectly, use, misappropriate,
disclose or aid any other person in disclosing such Confidential Information. You acknowledge that as used in this Agreement, “Confidential Information” includes, but is not limited to, all methods, processes, techniques, practices,
product designs, trade secrets, pricing information, billing histories, customer requirements, customer lists, employee lists, salary information, personnel matters, financial data, operating results, plans, contractual relationships, projections
for new business opportunities for new or developing business for the Employer, its parent, subsidiaries or affiliates, and technological innovations in any stage of development. “Confidential Information” also includes, but is not limited
to, all notes, records, software, drawings, handbooks, manuals, policies, contracts, memoranda, sales files, or any other documents generated or compiled by any employee of the Employer, its parent, subsidiaries or affiliates. Such information is,
and shall remain, the exclusive property of the Employer, its parent, subsidiaries or affiliates, and you hereby covenant and agree that you shall promptly return all such information to the Employer. 

 

	 	19.	This Agreement shall be governed by and construed in accordance with the laws of the Commonwealth of Virginia without reference to rules regarding conflicts of law. The
Employee irrevocably submits to and recognizes the jurisdiction of Virginia’s state courts or, if appropriate, a federal court located in the Commonwealth of Virginia (which courts, for purposes of this Agreement, are the only courts of
competent jurisdiction), over any suit, action or other proceeding arising out of, under or in connection with this Agreement of any subject addressed in this Agreement. 

	 	20.	The provisions of this Agreement are severable, and if any part or provision of it is found to be unenforceable, the other parts and provisions shall remain fully valid
and enforceable, provided, however, that if the release provided for in Section 4 above (or any part thereof) is found to be invalid, the parties shall negotiate a modification to such release to ensure the maximum enforceability permitted by
law. 

  

	 	21.	This Agreement may be executed in any number of counterparts, each of which shall, when executed, be deemed to be an original and all of which shall be deemed to be one
and the same instrument. 

  

	 	22.	Neither this Agreement nor any part of it may be modified, amended, changed or terminated orally, and any modification, amendment, or termination must be in writing
signed by the parties hereto. Any waiver of any term or provision of this Agreement must be in writing and signed by the party granting the waiver. 

  

	 	23.	This Agreement shall be binding on the Employee and the Employee’s heirs, administrators, representatives, executors and assigns and shall inure to the benefit of
the Employer, its parent companies, subsidiaries and affiliates and to all of their successors and assigns. 

  

	 	24.	Each party shall bear its or his own attorneys’ fees and costs incurred in connection with this Agreement. 

 

	 	25.	Any provision of this Agreement that contemplates performance after any termination or expiration of this Agreement shall survive any termination or expiration of this
Agreement and continue in full force and effect. 

 IN WITNESS WHEREOF, each of the parties has executed this
Agreement on the date(s) indicated below. 
  

									
	PRIMUS TELECOMMUNICATIONS, INC.	 		 	EMPLOYEE
				
	By:	 	 /s/ Peter Aquino
	 		 	 /s/ Kenneth Schwarz

		 	Peter Aquino	 		 	Kenneth Schwarz
		 	Chairman, President, and CEO	 		 	
					
	Date:	 	 July 2, 2012
	 		 	Date:	 	 July 2, 2012

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