Document:

Agreement

 Exhibit 4.3 
 AGREEMENT 
 THIS AGREEMENT made this 26th day of January, 1987 

B E T W E E N: 
 SEARS CANADA
INC. 
 (hereinafter called SEARS CANADA) 
 OF THE FIRST PART, 
 -and- 

SEARS, ROEBUCK AND CO. 
 (hereinafter called SEARS) 
 OF THE SECOND PART. 

WHEREAS by agreement dated 18th September, 1952 among Simpsons, Limited (“Simpsons”), SEARS and SEARS CANADA, under its
then name of Simpsons-Sears Limited, provision was made, among other things, for the purchase by SEARS CANADA of the mail order business of Simpsons and for the terms of the continuing relationship between the parties; and 

WHEREAS in such agreement both SEARS and Simpsons agreed to assist SEARS CANADA in developing merchandising methods and administrative
procedures in connection with a mail order and department store business and granted to SEARS CANADA the right to use, in Canada but not elsewhere during the term of such agreement, their respective trade marks and trade names; and 

 WHEREAS to carry out the provisions of such agreement relating to trade marks and trade
names and subject to the terms thereof, SEARS assigned to SEARS CANADA the legal title to certain trade marks in Canada, being the only means which was thought to exist at that time legally to permit SEARS CANADA to use such trade marks, and
consented to the registration in Canada by SEARS CANADA of certain other SEARS marks; and 
 WHEREAS by agreement dated
11th December, 1978 among Simpsons, SEARS and SEARS CANADA the said agreement was amended to reflect the intended distribution by way of dividend by Simpsons to its shareholders of its holdings of shares of SEARS CANADA; and 

WHEREAS pursuant to the terms of the said agreement as amended, the said agreement was terminated by SEARS CANADA with respect to all
matters contained therein pertaining to arrangements or understandings between SEARS CANADA and Simpsons; and 
 WHEREAS the
said agreement as amended will continue to be binding upon SEARS and SEARS CANADA until the expiration of a period of three (3) years after SEARS shall have ceased to hold, directly or indirectly, at least 25% of the voting shares of SEARS
CANADA; and 

  
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 WHEREAS the parties are desirous of further amending and restating the provisions of the
said agreement to reflect more adequately the status of their present arrangements; and 
 WHEREAS under such present
arrangements and reflecting the intention of the parties under the said agreement SEARS CANADA and SEARS will, contemporaneously with the execution of this agreement, reassign to SEARS the said trade marks and trade name and apply to make SEARS
CANADA a registered user with respect to the said Sears trade marks pursuant to the provisions of this agreement; 
 WHEREAS
SEARS and SEARS CANADA have each determined that it is in its best interest and for their mutual benefit to enter into this agreement; 
 NOW THEREFORE IT IS HEREBY AGREED by and between the parties as follows: 
 Definitions

  

	1.	In this agreement: 

  

	a)	“licenced trade marks” means those identified in Schedule A hereto, together with those further merchandising trade marks adopted or developed by SEARS, which
are added to this agreement at the option of SEARS CANADA, and any further merchandising trade marks confusingly similar to the foregoing trade marks that SEARS and SEARS CANADA may together from time to time add to this agreement;

  
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	b)	“merchandising” means activities of the type presently carried on by SEARS CANADA and other activities of the type carried out from time to time by the Sears
Merchandise Group in the United States of America during the term of this agreement, and reasonable extensions of such activities as agreed to by SEARS from time to time; 

 

	c)	“operational links” shall have the meaning given in paragraph 14 below; 

 

	d)	“territory” means the country of Canada.  

 Licenced Grant 
 2. SEARS hereby grants to SEARS CANADA, subject to the terms of this
agreement, the exclusive royalty free right to use the licenced trade marks in the territory in relation to goods and services in the field of merchandising. 

  
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 3. Any trade marks first adopted or developed by SEARS CANADA may be used in the United States by SEARS or
one of its subsidiaries at the option of SEARS, pursuant to a licence from SEARS CANADA on the same terms as the licence herein which SEARS CANADA will grant to SEARS at SEARS request. 
 Quality Controls 
 4. SEARS CANADA undertakes to use the licenced trade marks in connection
with goods and services in accordance with reasonable quality standards, specifications and/or instructions supplied by SEARS from time to time and which are consistent with the use of such trade marks by Sears Merchandise Group. SEARS confirms that
the present standards of quality of goods and services of SEARS CANADA meet SEARS standards. 
 5. SEARS CANADA shall permit SEARS, or its
authorized representatives, to inspect, at all reasonable times, any goods and services which are located in the premises of SEARS CANADA or which are located in the premises of any other person, firm, or corporation manufacturing or supplying
merchandising goods or services for SEARS CANADA which utilize the licenced trade marks. 
 6. SEARS CANADA shall submit samples of the goods
sold in association with the licenced trade marks to SEARS from time to time at SEARS request. 

  
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 7. SEARS CANADA specifically recognizes, now and for the future, SEARS rights and title in and to the
licenced trade marks and the trade name “Sears” and shall not at any time do or omit, or suffer to be done or omitted, any act or thing which may impair the trade mark and the trade name rights of SEARS. In the event that SEARS CANADA
abandons or does not make bona fide use of any licenced trade mark, SEARS may terminate this licence with respect to said licenced trade mark. 

8. The licence herein granted is not intended to be and shall not be construed as an assignment, in part or in whole, of any trade mark or trade name
rights of SEARS. 
 Special Provisions Relating to the Trade Mark and Trade name “Sears” 

9. SEARS CANADA acknowledges that SEARS is permitted to use the word “Sears” in the territory as a trade mark or a trade name in connection with
any business or activity other than merchandising. To the extent that SEARS is using or is proposing to use “Sears” in the territory as a trade mark or as a trade name it shall consult with SEARS CANADA in respect of such use. 

In respect of the name “Sears”, SEARS CANADA shall be permitted to use such name to identify generally the business 

  
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 which it carries on from time to time and in particular to use such name to identify its department stores
and other freehold and leasehold premises and the premises of its catalogue agents and licensees and to identify its catalogue, provided that if and to the extent that SEARS CANADA carries on or permits to be carried on in such premises or
advertises in such catalogue any business or activity which is not merchandising, such business or activity shal1 be carried on under a distinctive name not including the name “Sears” or any other of the licenced trade marks or any other
word or symbol confusingly similar thereto. Any such business or activity, if owned, directly or indirectly, by SEARS CANADA, may, however, be designated in a factual manner only as being so owned. In respect of the use of such name as contemplated
by this paragraph 9, SEARS CANADA’S merchandising business shall conform generally to the quality standards of the merchandising business carried on by Sears Merchandise Group. 
 Use by Others 
 10. The present licence is personal to SEARS CANADA and shall not be
assigned, transferred, conveyed or pledged by it, and any attempt by SEARS CANADA to do so shall be void and of no force or effect. SEARS CANADA shall not sub-licence the use 

  
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 of the licenced trade marks to others, but may arrange for persons, firms, or corporations manufacturing any
of the goods on behalf of SEARS CANADA, to apply the licenced trade marks to goods manufactured for SEARS CANADA, provided that such application complies in all respects with the conditions of this agreement. In addition SEARS CANADA may enter into
individual concession agreements under which the concessionaire shall be permitted to use the trade mark “Sears” or other licensed trade marks in connection with a merchandising goods or services business to be carried on by such
concessionaire, provided that i) each such concession agreement conforms to a general format previously approved by SEARS, and ii) the concessionaire enters into a registered user agreement with SEARS which shall require the concessionaire to
maintain the same standards and specifications in respect of its business as if the same were carried on directly by SEARS CANADA. SEARS CANADA is to be the agent of SEARS for the purpose of exercising control over the use of the licenced trade
marks by the concessionaire. 
 Registered User 
 11. SEARS CANADA shall execute appropriate registered user applications or agreements from time to time, for the purpose 

  
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of registering SEARS CANADA as a registered user under the Trade Marks Act, or any other such document as may be necessary to deem use by SEARS CANADA to be use by SEARS in connection with all
licenced trade marks. A registered user application shall be filed for the licenced trade marks covered in Schedule A upon SEARS becoming recorded as the registered owner of the said trade marks. For future trade marks to be covered by this
agreement, until the Canadian Trade Marks Office records SEARS CANADA as a registered user of the licenced trade marks, SEARS CANADA shall use the licenced trade marks with the prior approval of SEARS. 

Marking and Advertising 
  

	12.	SEARS CANADA in order to protect the licenced trade marks and the good will associated therewith agrees : 

 

	a)	to use only the licenced trade marks in the form as registered and as set forth in Schedule A hereto, without any accompanying words, hyphenated or otherwise, or
symbols of any nature unless first approved in writing by SEARS. 

  

	b)	SEARS CANADA shall at the request of SEARS submit to SEARS representative samples of packaging, advertising and other material on which the licenced trade marks appear.

  
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 Operational Links 
 13. SEARS shall, without charge, disclose to and assist SEARS CANADA in developing and installing merchandising methods and administrative procedures which have proven successful in SEARS merchandising
business in the United States in a substantially similar manner as has occurred since the creation of SEARS CANADA. SEARS shall have the right to adopt in its business, without charge, the merchandising methods and administrative procedures adopted
by SEARS CANADA. All other services rendered or supplied to SEARS CANADA by SEARS or to SEARS by SEARS CANADA shall be paid for by the party receiving the services on the basis of the actual determinable cost thereof without profit or override.

 14. For the purposes of Section 13 merchandising methods and administrative procedures shall include, without
limitation, field operating bulletins; arrangements to permit both SEARS and SEARS CANADA so far as reasonably possible to purchase merchandise of the same quality and specifications and on the same terms and conditions as is from time to time
purchased by the other; access to overseas buying offices and “store of the future” concepts; and any similar materials, information and access developed in future during the term hereof, all of which collectively are hereinafter referred to as operational links. 

  
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 15. SEARS and SEARS CANADA acknowledge that arrangements exist between them in respect of information
technology and computer and other automated systems related to their merchandising business based on the following general principles: 
  

	a)	common systems have been introduced by the parties based principally on the systems developed by SEARS; 

 

	b)	maintenance, improvement and development work related to such systems is to be shared by the parties pursuant to programs agreed upon from time to time;

  

	c)	each party is to co-operate with the other to assist the other in making the most efficient and beneficial use of such systems. 

The parties acknowledge the foregoing principles and agree that they shall enter into a separate written agreement in respect of their ownership and use
of such systems. 
 Infringements 
 16. SEARS CANADA shall promptly notify SEARS of any attempt by any third person or legal entity to use the licenced trade marks, or any variation or imitation thereof and of any litigation involving the
licenced trade marks that is instituted by any third person or legal entity. In the event SEARS, in its own discretion, undertakes the defence or prosecution of any 

  
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 litigation relating to the licenced trade marks, SEARS CANADA shall execute any and all documents and do
such acts and things as may in the reasonable opinion of SEARS, be necessary to carry out such defence or prosecution. SEARS CANADA shall be entitled to enforce the licensed trade marks against third parties in the event SEARS fails to do so. In the
event of any action taken by SEARS or SEARS CANADA, the other party may be represented by its own advisory counsel in such action. 
 Term,
Transition and Termination 
  

	17.	

  

	a)	This agreement subject to paragraph 18 shall continue until the expiration of a period of three years after SEARS has ceased to hold directly or Indirectly at least 25%
of the voting shares of SEARS CANADA, provided that during such three year period, SEARS CANADA shall not have the option to add to this agreement any further SEARS merchandising trade marks or to require SEARS to disclose to or assist SEARS CANADA
in developing any new merchandising methods or administrative procedures. 

  

	b)	If prior to the completion of the three (3) year period provided for in Subparagraph 17 (a) it is reasonably 

  
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 determined by SEARS CANADA that a longer transition period is necessary or desirable in
order to permit SEARS CANADA to phase in a new trade name or new trade marks, operational links and procedures or to phase out the trade name of any particular trade mark or marks or any particular operational link or links, without undue
inconvenience or interruption or financial hardship, SEARS shall extend the license granted hereunder in respect of the trade name or relevant trade mark or marks and/or continue to provide the relevant operational link or links for a further
extended transition period not to exceed four years on and subject to the terms of this agreement. If any such extended period is reasonably found to be necessary or desirable by SEARS CANADA, SEARS CANADA shall reimburse SEARS for all reasonable
costs and expenses which may be incurred by SEARS in continuing to provide such operational links, together with a royalty with respect to any licensed trade mark or marks the licence for which is so extended at a royalty rate to be agreed which
shall be equal to the lesser of a fair market rate based on the value of such mark or the lowest rate which will provide a reasonable incentive to induce SEARS CANADA to phase out the use of such mark during such extended period. 

  
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	c)	SEARS CANADA shall be deemed to be in default under this agreement and all rights granted herein shall automatically terminate without notice to SEARS CANADA, upon
SEARS CANADA acknowledging its insolvency, or making a general assignment for the benefit of creditors, or if a petition of bankruptcy is filed or consented to by SEARS CANADA or if SEARS CANADA is adjudicated bankrupt, or if a receiver, trustee or
other custodian of SEARS CANADA’s assets or property, or any substantial part thereof, is appointed pursuant to any applicable law, provided that, SEARS CANADA shall not be in default for a period of 60 days from any such filing, adjudication
or appointment if it is contesting such filing, adjudication or appointment or such longer period thereafter in respect of which a stay in the relevant proceedings is in effect. 

 The Corporate Name of SEARS CANADA 
 18. SEARS hereby confirms that it has consented to the
use by SEARS CANADA of SEARS as part of its corporate name Sears Canada Inc. Notwithstanding sub-paragraph 17(a) but subject as hereinafter provided, the right of SEARS CANADA to use SEARS as part of its corporate name shall exist only so long as:

  

	a)	SEARS holds directly or indirectly at least 25% of the voting shares of SEARS CANADA, and 

  
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	b)	SEARS CANADA is not in default as referred to in paragraph 17(c) hereof. 

 If this licence agreement is terminated for any reason, or if SEARS CANADA is no longer related to SEARS in accordance with sub-paragraph 18(a) above, SEARS CANADA will immediately cease using the
corporate name Sears Canada Inc. except to the extent such use is required by law and will initiate all steps necessary to change its corporate name to one not including SEARS or any of the other licensed trade marks or any confusingly similar term,
such steps to include the use of its best efforts to cause its directors and shareholders to authorize such change. In the event that SEARS shall have entered into an agreement for the sale of its shares in SEARS CANADA so that SEARS CANADA will no
longer be related to SEARS in accordance with sub-paragraph 18(a) above, SEARS CANADA will, at the request of SEARS, seek the necessary authorization of its directors and shareholders prior to such sale taking place conditional on such sale being
completed. If SEARS CANADA has not changed its corporate name within 6 months of the termination of its right to use “Sears” as part of its corporate name, this agreement shall terminate. 

  
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 Nothing in this section of this agreement affects the rights of SEARS CANADA to use the word
“Sears” as provided herein as it applies to merchandising, including the right to display “Sears” on the front of a department store or other premises or on its catalogue. 
 19. SEARS hereby confirms that it has consented to the use of the name SEARS as part of the corporate name of Sears Acceptance Company Inc. and Sears Properties Inc. and consents to its continued use
provided that i) each such corporation, at the request of SEARS, becomes a registered user of the trade mark SEARS and/or a trade mark consisting of the corporate name of such corporation; ii) such use shall cease and SEARS CANADA shall cause such
corporation to immediately change its corporate name to one not including SEARS or any confusingly similar term in the event that such corporation ceases to be wholly owned by SEARS CANADA or in the event that SEARS CANADA is obliged to change its
corporate name pursuant to paragraph 18. SEARS CANADA shall not permit the use of SEARS as part of the corporate name of any other subsidiary or related company without the prior written consent of SEARS. 

Post-Term Obligations 
 20. Upon the
termination or expiration of this agreement, or 

  
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 upon expiry of the extended transition period provided for in paragraph 17, if applicable, SEARS CANADA
shall cease to be a licensee of SEARS and SEARS CANADA shall immediately cease to use, directly or indirectly, in advertising or in any other manner whatever, the licenced trade marks and the trade name “Sears” and SEARS CANADA shall
forthwith remove from its place of business, and change any and all signs, fixtures, furnishings, equipment, advertising material, invoices, supplies, forms or other products which display the licenced trade marks. 

Independent Contractor 
 21. This
agreement does not create a fiduciary relationship between the parties. SEARS CANADA shall be an Independent contractor and so hold itself out to the public and nothing in this agreement is intended to make any party an agent, legal representative,
joint venturer, partner, employee or servant of the other for any purpose. 
 Written Approvals and Waivers 

22. Neither SEARS nor SEARS CANADA shall be deemed to have waived or impaired any right, power or option reserved by this 

  
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 agreement by virtue of any failure by the other party to demand strict compliance with this agreement; or by
virtue of any waiver, forbearance, delay, failure or omission by SEARS or SEARS CANADA to exercise any right, power, or option, whether of the same, similar or different nature, against the other party; absent notice to the contrary in writing. Any
and all notices required to be given hereunder shall be in writing sent by registered mail, telex, courier or facsimile transmission 
 to SEARS: 
 Sears Roebuck and Co., 

Sears Tower, 

Chicago Ill. 60684 
 Attention: General Counsel. 
 and to SEARS CANADA: 

Sears Canada Inc. , 
 222 Jarvis Street, 
 Toronto, Ontario. 

Attention: Secretary. 

  
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 Default 
 23. SEARS CANADA shall not be deemed to be in breach of any of its obligations hereunder, except as provided in sub-paragraph 17 (c), unless SEARS shall have given written notice to SEARS CANADA
specifying in reasonable detail the particulars of such breach and SEARS CANADA shall have failed to remedy such breach within a period of 30 days or such longer period as shal1 be reasonably required to remedy such breach. 

Co-operation 
 24. SEARS and SEARS CANADA
shall each co-operate with the other in order to maintain, preserve and enhance the good will associated with the trade marks licenced hereunder and to achieve the maximum benefit from the use of the said trade marks in their respective businesses.
Each party shall take such action as shall reasonably be requested by the other in order to give effect to the intent of this paragraph. The parties shall meet together on a regular basis, and at least once in each year, to discuss, review and
co-ordinate their activities pursuant to this agreement and to establish efficient procedures in respect of registrations, agreements and other steps to be taken by the parties hereunder. 

  
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 Restatement 
 25. This agreement is intended to restate and amend the provisions of the said agreement dated 18th September, 1952 between the parties, as heretofore amended, and thus shall supercede the provisions
of the said agreement. 
 Severability 
 26. 
  

	a)	Except as expressly provided to the contrary herein, each section, part, term and provision of this agreement, or any portion thereof, shall be considered severable and
if for any reason any such portion of this agreement is invalid, illegal or incapable of being enforced by reason of any rule of law or public policy, all other portions of this agreement shall, nevertheless, remain in full force and effect and no
portion of this agreement shall be deemed dependent upon any other portion unless so expressed herein. 

  

	b)	All headings and captions in this agreement are intended solely for the convenience of the parties, and none shall be deemed to affect the meaning or construction of
any provision hereof. 

  
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	c)	Time is of the essence of this agreement.  

 Applicable Law 
 27. This agreement shall be interpreted and construed under the laws of the
Province of Ontario. 
 IN WITNESS WHEREOF, the parties hereto have duly executed, sealed and delivered this agreement in
duplicate on the day and year first above written. 
  

			
	SEARS CANADA INC.
		
	by: 	 	

		 	Chairman of the Board
		
		 	

		 	Secretary
	
	SEARS, ROEBUCK AND CO.
		
	by: 	 	

		 	 Chairman and CEO
 SEABS
MERCHANDISE GROUP

		
		 	

		 	Assistant Secretary

  
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 SCHEDULE “A” 

REGISTERED TRADE MARKS 
  

					
	 Name
	  	Reg. No.	 
	 ADAGIOS
	  	 	115,196	  
	 AH-H BRA
	  	 	249,225	  
	 ALLSTATE
	  	 	27,886	  
	 ALLSTATE GUARDSMAN 4 4
	  	 	142,857	  
	 AUTOCRUISE
	  	 	300,518	  
		
	 BATHSHOP COLORMATES & DESIGN
	  	 	235,816	  
	 BENCHMADE
	  	 	236,367	  
	 BONNET
	  	 	280,203	  
	 BRADLEY
	  	 	29,122	  
		
	 CARRIAGE COURT
	  	 	302,634	  
	 CARRIAGE COURT... ITALIA & DESIGN
	  	 	318,957	  
	 CLING-ALON
	  	 	134,776	  
	 COLDSPOT
	  	 	27,902	  
	 COLDSPOT
	  	 	313,292	  
	 COLORMATES
	  	 	253,558	  
	 COUNTRY INN
	  	 	45,377	  
	 COUNTRY INN & DESIGN
	  	 	229,253	  
	 CRAFTSMAN
	  	 	27,901	  
	 CRAFTSMAN CUSTOM
	  	 	252,054	  
	 CRUISAIRE
	  	 	43,031	  
		
	 DASHMATE
	  	 	218,897	  
	 DYNABOND
	  	 	228,823	  
		
	 EAGER 1
	  	 	188,712	  
	 EASY LIVING PAINT
	  	 	220,376	  
	 ELASTO-FIT
	  	 	147,595	  
	 ENDURABLES
	  	 	248,623	  
		
	 FABRIC MASTER
	  	 	182,308	  
	 FASHIONLITE
	  	 	180,939	  
	 FIRM LINE
	  	 	119,556	  
	 FORECAST
	  	 	124,224	  
	 FREEDOMFLOR
	  	 	228,737	  
	 FREE SPIRIT
	  	 	198,026	  
	 FREEZER-MATE
	  	 	106,315	  

					
	 GAMEFISHER
	  	 	181,680	  
	 GOLD COAT
	  	 	242,892	  
	 GREEN KARPET
	  	 	102,948	  
	 GUARDSMAN
	  	 	109,125	  
		
	 HAPPI-TIME
	  	 	27,897	  
	 HARMONY HOUSE
	  	 	106,021	  
	 HILLARY
	  	 	254,014	  
	 HOMART
	  	 	27,884	  
	 HOMESTEAD
	  	 	220,909	  
	 HONEYSUCKLE
	  	 	27,895	  
	 HOSTESS SHOP & DESIGN
	  	 	230,728	  
		
	 INCREDICELL
	  	 	306,220	  
		
	 JEANS FOR MEN & DESIGN
	  	 	279,477	  
	 JEEPERS
	  	 	142,999	  
	 JEUNE BOUTIQUE & DESIGN
	  	 	187,350	  
	 JEUNE BOUTIQUE & DESIGN
	  	 	187,335	  
	 JUNIOR BAZAAR
	  	 	154,290	  
	 JUNIOR BAZAAR
	  	 	203,294	  
		
	 KENMORE
	  	 	27,933	  
	 KENMORE CONCEPT SUPRA
	  	 	285,993	  
	 KENMORE DELUXE
	  	 	147,486	  
	 KENMORE SILHOUETTE
	  	 	146,109	  
	 KENMORE TRUE SIMMER
	  	 	169,885	  
	 KENMORE UP AND OVER
	  	 	285,906	  
	 KERRYBROOKE
	  	 	30,953	  
	 KINGS CROWN
	  	 	159,993	  
		
	 LADY KENMORE
	  	 	266,135	  
	 LADY KENMORE CLASSIC
	  	 	146,111	  
	 LADY KENMORE SILHOUETTE
	  	 	146,110	  
	 LA RESISTANTE
	  	 	273,377	  
	 LAURENTIAN
	  	 	101,174	  
	 LEAPIN’ JEEPERS
	  	 	142,997	  
	 LEGTRICITY
	  	 	210,264	  
	 LI’L JEEPERS
	  	 	142,998	  
	 LOCATION DE VOITURES SEARS
	  	 	282,491	  
	 LXI SERIES
	  	 	259,394	  
		
	 MASTERPIECE
	  	 	154,632	  
	 MATCHMATES
	  	 	254,732	  
	 MEDLEY
	  	 	250,840	  
	 MIRA-COLD
	  	 	122,168	  
	 MUZZLER
	  	 	297,723	  

  
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	 NOTHING ELSE
	  	 	223,700	  
		
	 PANTS THAT FIT & DESIGN
	  	 	195,752	  
	 PERMA-SMOOTH
	  	 	122,460	  
	 PILLOW SOFT
	  	 	218,930	  
	 PLACE DE LA MODE & DESIGN
	  	 	255,124	  
	 POWERMATE
	  	 	251,850	  
	 POWER-MATE
	  	 	274,802	  
	 PUTTER SUIT
	  	 	210,032	  
		
	 ROADHANDLER
	  	 	215,679	  
	 ROADMATES
	  	 	262,256	  
	 ROADMATES & DESIGN
	  	 	262,791	  
	 ROCK BOTTOMS
	  	 	265,952	  
	 ROUGH HOUSERS
	  	 	250,307	  
	 ROUGHSHOD
	  	 	117,218	  
		
	 SANI-GARD
	  	 	136,039	  
	 SEAROFIL
	  	 	300,525	  
	 SEARS
	  	 	39,780	  
	 SEARS
	  	 	304,115	  
	 SEARS (new application)
	  	 	476,403	  
	 SEARS DIVISION
	  	 	304,882	  
	 SEARS ELECTRONICS DESIGN
	  	 	237,390	  
	 SEARS ELECTRONICS & DESIGN
	  	 	275,769	  
	 SEARS-O-PEDIC
	  	 	120,321	  
	 SEARS OPTICAL CENTRE & DESIGN
	  	 	235,392	  
	 SEARS SET & DESIGN
	  	 	230,055	  
	 SEARS SHAPE SHOP & DESIGN
	  	 	239,637	  
	 SENSOR TOUCH
	  	 	227,608	  
	 SEROFOAM
	  	 	119,412	  
	 SERVISTWIST
	  	 	104,528	  
	 SILVERGUARD
	  	 	246,310	  
	 SILVERTONE
	  	 	31,615	  
	 SIMPLE & FACILE
	  	 	252,029	  
	 SIMPSONS-SEARS DESIGN
	  	 	45,597	  
	 SIMPSONS-SEARS TEX
	  	 	193,078	  
	 SLUMBER SHOP & DESIGN
	  	 	231,092	  
	 SOFT HEAT
	  	 	183,377	  
	 SPACEMASTER
	  	 	44,617	  
	 SPECTRUM
	  	 	190,703	  
	 SPECTRUM PLUS
	  	 	279,327	  
	 SPECTRUM PLUS MILEAGE
	  	 	274,780	  
	 SPORTSMAN
	  	 	246,786	  
	 STEADYRIDER RT
	  	 	268,026	  
	 STELLARIS
	  	 	199,104	  
	 STEP LIVELY DESIGN
	  	 	227,625	  
	 SUIT-YOUR-SIZE
	  	 	193,962	  
	 SUPER ROTOSWIRL AGITATOR
	  	 	183,652	  

  
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	 SUPRAMATIC
	  	 	44,753	  
	 SUPERPLUSH II & DESIGN
	  	 	254,189	  
	 SURVIVOR
	  	 	272,937	  
	 SUTEKI
	  	 	297,389	  
		
	 TED WILLIAMS DESIGN
	  	 	133,754	  
	 THE BIG TOY CHEST
	  	 	241,764	  
	 THE DOESN’T PANTY
	  	 	260, 663	  
	 THE FASHION PLACE
	  	 	232,713}	  
	 THE FASHION PLACE & DESIGN
	  	 	245,070)	  
	 THE GATHERING
	  	 	210,657	  
	 THE LABEL OF CONFIDENCE
	  	 	229,082	  
	 THE LITTLE SEARS & DESIGN
	  	 	228 ,009	  
	 THE SHOE PLACE
	  	 	213,593	  
	 THE WINKER
	  	 	202,104	  
	 TOUGHMATES
	  	 	253,658	  
	 TOUGHSKINS
	  	 	195,729	  
	 TOUGHSKINS
	  	 	223,698	  
	 TOUGH JEANS TERRITORY
	  	 	216,974	  
	 TRADITION
	  	 	27,862	  
	 TREE & TENT DESIGN
	  	 	258,020	  
	 TRIM TO FIT & DESIGN
	  	 	215,600	  
	 TRIPLE DUTY
	  	 	267,417	  
	 TRIPLE EMPLOI
	  	 	267,418	  
	 TWIN SKINS
	  	 	248,650	  
		
	 UNE PLUIE
	  	 	250,858	  
	 UN SERVICE DE CONFIANCE
	  	 	292 ,305	  
	 UN SERVICE DE CONFIANCE & DESIGN
	  	 	289,016	  
		
	 VIDEO ARCADE
	  	 	218,787	  
	 VIST BAKE
	  	 	45,195	  
		
	 WEARMASTER
	  	 	27,861	  
	 WEARMASTER DESIGN (WM)
	  	 	254,269	  
	 WEATHER BEATER
	  	 	202 ,425	  
	 WEATHERBEATER
	  	 	274,233	  
	 WEATHER-MATIC
	  	 	126 ,588	  
	 WE INSTALL CONFIDENCE
	  	 	288,260	  
	 WE INSTALL CONFIDENCE & DESIGN
	  	 	290,434	  
	 WHITE SHIELD
	  	 	115,723	  
	 WINTERSKINS
	  	 	236,392	  
	 WORKMASTER
	  	 	27,955	  
	 WRINKLE GUARD
	  	 	182,309	  
		
	 X-CARGO & DESIGN
	  	 	288 ,251	  

  
 - 4 -

 TRADE MARKS APPLIED FOR BUT NOT YET REGISTERED 

 

			
	 Trade Mark
	  	 Serial No.

	 GAMEFISHER (ext/wares)
	  	
	 GOOLAGONG
	  	531,988
		
	 INTELLIGENTE (Fr. Smart)
	  	not yet issued
		
	 OAKTON
	  	568,640
	 OPEN HOME
	  	517,211
	 OPEN HOME & Design
	  	523,056
		
	 SCI
	  	557,182
	 SEARS & Design
	  	485,961
	 SEARS & Design
	  	535,349
	 SEARS BEST
	  	369,899
	 SEARS CATALOGUE CLEARANCE
	  	409,132
	 SEARS CATALOGUE DE LIQUIDATION (Fr.)
	  	409,133
	 SEARS COLLECTION
	  	544,776
	 SEARS-RENT-A-CAR (BUDGET)
	  	373,353
	 SEARS REST
	  	553,223
	 SEARS REPOS (Fr.)
	  	557,218
	 SMART
	  	563,737

  
 - 5 -

 THIS AGREEMENT made this 26th day of January, 1987 
 BETWEEN: 
 SEARS, ROEBUCK AND CO., a Company incorporated under the laws of New
York, United States of America, 
 (hereinafter celled “the Owner”) 

OF THE FIRST PART 

- and - 
 SEARS
CANADA INC., a Company incorporated and organized under the laws of Canada and having its principal place of business at 222 Jarvis Street, Toronto, Ontario, 
 (hereinafter called “the Proposed Permitted User”) 
 OF THE SECOND PART

 WHEREAS, Owner is the partial owner and controlling shareholder of the Proposed Permitted User; and 

WHEREAS, the Owner in Canada is the owner of the trade marks identified in Schedule “A” hereto, and the Proposed Permitted User
desires to acquire a license to use said trade marks in Canada on the terms and conditions as hereinafter set forth. 

 NOW THEREFORE, in consideration of the premises, of the mutual promises of the parties and
of Ten Dollars (S10.00) to each party by the other now paid, IT IS HEREBY AGREED AND DECLARED AS FOLLOWS: 
 1. The Owner gives
to the Proposed Permitted User the royalty-free exclusive right to use in Canada the trade marks of the Owner as set out in Schedule “A” attached hereto in respect of all of the goods and/or services for which such trade marks have or in
the future may be registered or are in the process of being registered by the Owner. Schedule “A” may be amended from time to time to add or delete trade marks by written agreement of the parties. 

2. The Proposed Permitted User agrees to use said trade marks only in relation to the goods and/or services for which said trade marks
have or in the future may be registered and for which the Proposed Permitted User is recorded as a Registered User. 
 3. All
goods and/or services of Proposed Permitted User associated with said trade marks of the Owner shall be of a quality agreed to by Owner. The Owner or its duly authorized agent shall have the right to inspect on the premises of the Proposed Permitted
User, at reasonable times, the goods and/or services which the Proposed Permitted User sells or offers for sale under said trade marks, or receive samples of the goods and/or services or advertisements pertaining to the goods and/or services which
the Proposed Permitted User sells or offers for sale under the trade marks. Provided that upon receipt of written notice from the Owner that goods or services which the Proposed Permitted User sells or offers for sale under the trade marks of the
Owner do not in the reasonable opinion of the Owner meet the standard of quality stipulated above, the Proposed Permitted User shall rectify forthwith any such deficiencies. 

  
 - 2 -

 4. This agreement shall remain in force for an indefinite period. The Permitted User shall
be allowed a reasonable period of time following termination to dispose of any goods which it may have in stock or on order bearing the Owner’s trade marks, provided that during such reasonable period of time following termination the Proposed
Permitted User is entered in the Canadian Trade Marks Office as a registered user of the trade marks or cooperates fully in having itself so entered. 
 5. Any and all written notices required to be given, or which may be given under this agreement, shall be delivered personally or sent by prepaid registered mail addressed, in the case of the Owner, to:
Corporate Identity Counsel, Department 956, Sears, Roebuck and Co., Sears Tower, Chicago, Illinois 60684, and in the case of the Proposed Permitted User, to: Sears Canada Inc., Department 766, 222 Jarvis Street, Toronto, Ontario, M5B 2B8, and marked
to the attention of Vice-President, Secretary & Corporate Counsel, or to such other addresses as the parties hereafter in writing may advise. 
 Delivery shall be deemed to have been accomplished on delivery in fact if delivered personally, by courier service, by telex, or if by mail on the third business day following the date of mailing, as
aforesaid. 

  
 - 3 -

 6. This agreement shall be governed by the laws of the Province of Ontario and any
applicable laws of Canada. 
 IN WITNESS WHEREOF the parties hereto have set their hands and seals as of the day and year first
above written. 
  

					
	 OWNER
	  	)        	  	 SEARS, ROEBUCK AND CO.

 

		  	)        	  	 

		  	)        	  
		  	)        	  
		  	)        	  
		  	)        	  	Chairman and CEO
		  	)        	  	SEARS MERCHANDISE GROUP
		  	)        	  	 

		  	)        	  
		  	)        	  
		  		  	Assistant Secretary
			
	 PROPOSED PERMITTED USER
	  	)        	  	SEARS CANADA INC.
		  	)        	  	 

		  	)        	  
		  	)        	  
		  	)        	  
		  	)        	  	Vice President, Merchandising
		  	)        	  	 

		  	)        	  
		  	)        	  
		  	)        	  	Secretary

  
 - 4 -

 SCHEDULE “A” 

REGISTERED TRADE MARKS 
  

					
	 Name
	  	Reg. No.	 
	 ADAGIOS
	  	 	115,196	  
	 AH-H BRA
	  	 	249,225	  
	 ALLSTATE
	  	 	27,886	  
	 ALLSTATE GUARDSMAN 44
	  	 	142,857	  
	 AUTOCRUISE
	  	 	300,518	  
		
	 BATHSHOP COLORMATES & DESIGN
	  	 	235,816	  
	 BENCHMADE
	  	 	236,367	  
	 BONNET
	  	 	280,203	  
	 BRADLEY
	  	 	29,122	  
		
	 CARRIAGE COURT
	  	 	302,634	  
	 CARRIAGE COURT... ITALIA & DESIGN
	  	 	318,957	  
	 CLING-ALOW
	  	 	134,776	  
	 COLDSPOT
	  	 	27,902	  
	 COLDSPOT
	  	 	313,292	  
	 COLORMATES
	  	 	253,558	  
	 COUNTRY INN
	  	 	45,377	  
	 COUNTRY INN & DESIGN
	  	 	229,253	  
	 CRAFTSMAN
	  	 	27,901	  
	 CRAFTSMAN CUSTOM
	  	 	252,054	  
	 CRUISAIRE
	  	 	43,031	  
		
	 DASHMATE
	  	 	218,897	  
	 DYKABOND
	  	 	228,823	  
		
	 EAGER 1
	  	 	188,712	  
	 EASY LIVING PAINT
	  	 	220,376	  
	 ELASTO-FIT
	  	 	147,595	  
	 ENDURABLES
	  	 	248,623	  
		
	 FABRIC MASTER
	  	 	182,308	  
	 FASHIONLITE
	  	 	180,939	  
	 FIRM LINE
	  	 	119,556	  
	 FORECAST
	  	 	124,224	  
	 FREEDOMFLOR
	  	 	228,737	  
	 FREE SPIRIT
	  	 	198,026	  
	 FREEZER-MATE
	  	 	106,315	  

					
	 GAMEFISHER
	  	 	181,680	  
	 GOLD COAT
	  	 	242,892	  
	 GREEN KARPET
	  	 	102,948	  
	 GUARDSMAN
	  	 	109,125	  
		
	 HAPPI-TIME
	  	 	27,897	  
	 HARMONY HOUSE
	  	 	106,021	  
	 HILLARY
	  	 	254,014	  
	 HOMART
	  	 	27,884	  
	 HOMESTEAD
	  	 	220,909	  
	 HONEYSUCKLE
	  	 	27,895	  
	 HOSTESS SHOP & DESIGN
	  	 	230,728	  
		
	 INCREDICELL
	  	 	306,220	  
		
	 JEANS FOR MEN & DESIGN
	  	 	279,477	  
	 JEEPERS
	  	 	142,999	  
	 JEUNE BOUTIQUE & DESIGN
	  	 	187,350	  
	 JEUNE BOUTIQUE & DESIGN
	  	 	187,335	  
	 JUNIOR BAZAAR
	  	 	154,290	  
	 JUNIOR BAZAAR
	  	 	203,294	  
		
	 KENMORE
	  	 	27,933	  
	 KENMORE CONCEPT SUPRA
	  	 	285,993	  
	 KENMORE DELUXE
	  	 	147,486	  
	 KENMORE SILHOUETTE
	  	 	146,109	  
	 KENMORE TRUE SIMMER
	  	 	169,885	  
	 KENMORE UP AND OVER
	  	 	285,906	  
	 KERRYBROOKE
	  	 	30,953	  
	 KINGS CROWN
	  	 	159,993	  
		
	 LADY KENMORE
	  	 	266,135	  
	 LADY KENMORE CLASSIC
	  	 	146,111	  
	 LADY KENMORE SILHOUETTE
	  	 	146,110	  
	 LA RESISTANTE
	  	 	273,377	  
	 LAURENTIAN
	  	 	101,174	  
	 LEAPIN’ JEEPERS
	  	 	142,997	  
	 LEGTRICITY
	  	 	210,264	  
	 LI’L JEEPERS
	  	 	142,998	  
	 LOCATION DE VOITURES SEARS
	  	 	282,491	  
	 LXI SERIES
	  	 	259,394	  
		
	 MASTERPIECE
	  	 	154,632	  
	 MATCHMATES
	  	 	254,732	  
	 MEDLEY
	  	 	250,840	  
	 MIRA-COLD
	  	 	122,168	  
	 MUZZLER
	  	 	297,723	  

  
 - 2 -

					
	 NOTHING ELSE
	  	 	223,700	  
		
	 PANTS THAT FIT & DESIGN
	  	 	195,752	  
	 PERMA-SMOOTH
	  	 	122,460	  
	 PILLOW SOFT
	  	 	218,930	  
	 PLACE DE LA MODE & DESIGN
	  	 	255,124	  
	 POWERMATE
	  	 	251,850	  
	 POWER-MATE
	  	 	274,802	  
	 PUTTER SUIT
	  	 	210,032	  
		
	 ROADHANDLER
	  	 	215,679	  
	 ROADMATES
	  	 	262,256	  
	 ROADMATES & DESIGN
	  	 	262,791	  
	 ROCK BOTTOMS
	  	 	265,952	  
	 ROUGH HOUSERS
	  	 	250,307	  
	 ROUGHSHOD
	  	 	117,218	  
		
	 SANI-GARD
	  	 	136,039	  
	 SEAROFIL
	  	 	300,525	  
	 SEARS
	  	 	39,780	  
	 SEARS
	  	 	304,115	  
	 SEARS [new application)
	  	 	476,403	  
	 SEARS DIVISION
	  	 	304,882	  
	 SEARS ELECTRONICS DESIGN
	  	 	237,390	  
	 SEARS ELECTRONICS & DESIGN
	  	 	275,769	  
	 SEARS-0-PEDIC
	  	 	120,321	  
	 SEARS OPTICAL CENTRE & DESIGN
	  	 	235,392	  
	 SEARS SET & DESIGN
	  	 	230,055	  
	 SEARS SHAPE SHOP & DESIGN
	  	 	239,637	  
	 SENSOR TOUCH
	  	 	227,608	  
	 SEROFOAM
	  	 	119,412	  
	 SERVISTWIST
	  	 	104,528	  
	 SILVERGUARD
	  	 	246,310	  
	 SILVERTONE
	  	 	31,615	  
	 SIMPLE & FACILE
	  	 	252,029	  
	 SIMPSONS-SEARS DESIGN
	  	 	45,597	  
	 SIMPSONS-SEARS TEX
	  	 	193,078	  
	 SLUMBER SHOP & DESIGN
	  	 	231,092	  
	 SOFT HEAT
	  	 	183,377	  
	 SPACEMASTER
	  	 	44,617	  
	 SPECTRUM
	  	 	190,703	  
	 SPECTRUM PLUS
	  	 	279,327	  
	 SPECTRUM PLUS MILEAGE
	  	 	274,780	  
	 SPORTSMAN
	  	 	246,786	  
	 STEADYRIDER RT
	  	 	268,026	  
	 STELLARIS
	  	 	199,104	  
	 STEP LIVELY DESIGN
	  	 	227,625	  
	 SUIT-YOUR-SIZE
	  	 	193,962	  
	 SUPER ROTOSWIRL AGITATOR
	  	 	183,652	  

  
 - 3 -

					
	 SUPRAMATIC
	  	 	44,753	  
	 SUPERPLUSH II & DESIGN
	  	 	254,189	  
	 SURVIVOR
	  	 	272,937	  
	 SUTEKI
	  	 	297,389	  
		
	 TED WILLIAMS DESIGN
	  	 	133,754	  
	 THE BIG TOY CHEST
	  	 	241,764	  
	 THE DOESN’T PANTY
	  	 	260,663	  
	 THE FASHION PLACE
	  	 	232,713)	  
	 THE FASHION PLACE & DESIGN
	  	 	245,070)	  
	 THE GATHERING
	  	 	210,657	  
	 THE LABEL OF CONFIDENCE
	  	 	229,082	  
	 THE LITTLE SEARS & DESIGN
	  	 	228,009	  
	 THE SHOE PLACE
	  	 	213,593	  
	 THE WINNER
	  	 	202,104	  
	 TOUGHMATES
	  	 	253,658	  
	 TOUGHSKINS
	  	 	195,729	  
	 TOUGHSKINS
	  	 	223,698	  
	 TOUGH JEANS TERRITORY
	  	 	216,974	  
	 TRADITION
	  	 	27,862	  
	 TREE & TENT DESIGN
	  	 	258,020	  
	 TRIM TO FIT & DESIGN
	  	 	215,600	  
	 TRIPLE DUTY
	  	 	267,417	  
	 TRIPLE EMPLOI
	  	 	267,418	  
	 TWIN SKINS
	  	 	248,650	  
		
	 UNE PLUIE
	  	 	250,858	  
	 UN SERVICE DE CONFIANCE
	  	 	292,305	  
	 UN SERVICE DE CONFIANCE & DESIGN
	  	 	289,016	  
		
	 VIDEO ARCADE
	  	 	218,787	  
	 VISI BAKE
	  	 	45,195	  
		
	 WEARMASTER
	  	 	27,861	  
	 WEARMASTER DESIGN (WM)
	  	 	254,269	  
	 WEATHER BEATER
	  	 	202,425	  
	 WEATHER BEATER
	  	 	274,233	  
	 WEATHER-MATIC
	  	 	126,588	  
	 WE INSTALL CONFIDENCE
	  	 	288,260	  
	 WE INSTALL CONFIDENCE & DESIGN
	  	 	290,434	  
	 WHITE SHIELD
	  	 	115,723	  
	 WINTERSKINS
	  	 	236,392	  
	 WORKMASTER
	  	 	27,955	  
	 WRINKLE GUARD
	  	 	182,309	  
		
	 X-CARGO & DESIGN
	  	 	288,251	  

  
 - 4 -

 TRADE MARKS APPLIED FOR BUT NOT YET REGISTERED 

 

			
	 Trade Mark
	  	 Serial No.

	 GAMEFISHER (ext/wares)
	  	
	 GOOLAGONG
	  	531,988
		
	 INTELLIGENTE (Fr. Smart)
	  	not yet issued
		
	 OAKTON
	  	568,640
	 OPEN HOME
	  	517,211
	 OPEN HOME & Design
	  	523 ,056
		
	 SCI
	  	557,182
	 SEARS & Design
	  	485,961
	 SEARS & Design
	  	535,349
	 SEARS BEST
	  	369,899
	 SEARS CATALOGUE CLEARANCE
	  	409,132
	 SEARS CATALOGUE DE LIQUIDATION (Fr.)
	  	409 ,133
	 SEARS COLLECTION
	  	544,776
	 SEARS- RENT-A-CAR (BUDGET)
	  	373,353
	 SEARS REST
	  	553 ,223
	 SEARS REPOS (Fr.)
	  	557,218
	 SMART
	  	563 ,737

  
 - 5 -Employment Agreement

 Exhibit 4.4 

 
 

 
 EMPLOYMENT AGREEMENT 
 This Agreement is between Sears Canada Inc. (“Sears”) and Calvin McDonald. 
  

	1.	EMPLOYMENT 

 The effective
date of this Agreement and your first day in this position is June 22, 2011 (the “Effective Date”). This offer and the agreement arising from this offer is subject to the approval of the Board of Directors of Sears Canada Inc. (the
“Board”). In addition, if the requirements of Sections 6 and 7 are not satisfied before the first day of work, then this Agreement, at Sears’ option, is terminated and if so, the offer of employment contained herein is rescinded.

  

	1.1	Your position will be President and CEO, and you will have those duties, responsibilities and reporting requirements which are ordinarily and reasonably expected of a
President and CEO and as may from time to time be assigned by the Board or its designate. A more detailed description of your duties and responsibilities will be discussed with you upon commencement in the role. 

 

	1.2	You shall devote your full working time and attention and you shall exert your best efforts, knowledge, skill and energy to the performance of your duties with Sears.
Sears standard workweek is 40 hours. However, you will be required to devote whatever time is reasonably necessary to complete the requirements of your position, which may exceed 40 hours per week from time to time, without entitlement to overtime
pay. You are a fiduciary of Sears and shall act at all times in the Sears’ best interests. 

  

	1.3	You will not become, without obtaining the prior written consent of the Chair of the Board, a director, officer, employee, agent or consultant of, or engage in any
other business or occupation for, any other company, firm, charity or individual while in the service of the Company. 

  

	1.4	You agree that no representation or inducement has caused you to leave any previous employment. 

 

	2.	COMPENSATION 

  

	2.1	Sears will pay you a base salary of $800,000 (CDN) per annum, less deductions required by law, paid monthly via direct deposit (“Base Salary”).

  

	2.2	You are entitled to four (4) weeks of annual paid vacation time per year, pro-rated for any partial years worked. All vacation must be taken annually and where
possible, should be taken in periods of one or two weeks at a time. Payment of all vacation pay will be at Base Salary. You will be required to arrange vacation time off to suit the needs of the Company. Future vacation entitlement will be earned
based on company policy, which may be amended from time to time. Unused vacation time will not be carried over to the following year(s) but will be forfeited, subject to you being paid annually the minimum vacation pay required under the Ontario
Employment Standards Act, 2000 (“ESA”). On leaving the employment of the Company for whatever reason, the Company will pay you any accrued, but unpaid vacation pay up to the date the your employment ceases. 

 

	2.3	You will be eligible to participate in the Sears Flexible Benefit Plan, under the terms of the plan which may be amended from time to time, commencing on the first of
the month following or coincident with your date of hire. A booklet setting out eligibility rules and coverage offered under the plan will be mailed directly to your home. 

	2.4	You will be eligible for the Sears Associate Discount Benefit, in accordance with the Associate Discount Policy which may be amended from time to time.

  

	2.5	You are eligible to participate in the Sears Defined Contribution Pension Plan, in accordance with the terms of the plan which may be amended from time to time. The
details and coverage levels will be discussed with you in more detail after the Effective Date. 

  

	2.6	You will be eligible to participate in our corporate incentive program, under the terms of the program as amended from time to time (the “Annual Incentive
Program”). Subject to the approval of the Human Resource and Compensation Committee, the Annual Incentive Program provides a Target Incentive Opportunity of 100% of your Base Salary. Your target incentive under the 2011 Annual Incentive Program
will be prorated from your Effective Date through January 28, 2012, the last day of Sears’ 2011 fiscal year. In order to receive payout under the Annual Incentive Program, you must be Actively Employed on the date of payout. For the
purposes of this Agreement, the term “Actively Employed” does not include any period of reasonable or statutory notice or any period of deemed employment or salary continuance. More information on the Annual Incentive Program will be
provided to you upon your commencement in the role. 

  

	2.7	You will be eligible to participate in the 2011-2013 Long Term Incentive plan (LTIP) cycle under the terms of the plan which may be amended from time to time. The
target payout for eligible associates is a percentage of earnings which is pre-set for each LTIP eligible position. At your level, the LTIP is designed to pay a target incentive of 300% of your Base Salary. Your LTIP amount will be based on your
Base Salary in effect in the applicable fiscal year. Except as set forth in Section 4.4, in order to receive a payout under the LTIP, you must be Actively Employed on the date of payout. In accordance with the terms of the LTIP, the target
incentive of 300% of your Base Salary for the 2011-2013 LTIP cycle will be pro-rated to the date during the performance period that you become a participant. The terms of your participation in future LTIPs (which terms will be consistent with this
Section 2.7) will be determined by the Human Resource and Compensation Committee in conjunction with the Board. 

  

	3.	SIGNING BONUS AND RELOCATION 

  

	3.1	Sears will provide you with a one-time signing bonus of $200,000 CDN (gross) (the “Signing Bonus”). The Signing Bonus shall be payable to you within 30 days
of the Effective Date. Should you resign from your employment with Sears, or should you be terminated for Cause (as defined below), within 24 months of the Effective Date you agree to reimburse Sears 100% of the Signing Bonus, and you authorize
Sears to deduct this amount from your final pay, including but not limited to regular salary and vacation pay. Any outstanding amount must be paid within 30 days of your last day worked. Should Sears decide to terminate your employment, on a without
cause basis, you will not be required to repay the Signing Bonus. 

  

	3.2	Sears will provide you with a Cash Retention Award of $1,000,000 CDN (gross) (the “Retention Award”), which amount shall be paid in four equal installments as
soon as reasonably practicable after January 31, 2012, January 31, 2013, January 31, 2014 and January 31, 2015. Except as set forth in Section 4.4, in the event that your employment with the Company is terminated
for any reason prior to the payment date, you will not be entitled to receive any unpaid portion of the Retention Award. Further, in the event you voluntarily terminate your employment with Sears Canada or are terminated by Sears Canada for Cause
within twelve (12) months of a payment date, you will be required to repay that amount to Sears Canada within thirty (30) days of your last day worked. 

  
 2 

	4.	CESSATION OF EMPLOYMENT 

  

	4.1	You may retire or resign from Sears at any time upon providing 30 days’ written notice, which can be waived in whole or in part by Sears and you will not be
entitled to receive any further compensation or benefits whatsoever other than those which have accrued up to the last day you are Actively Employed with the Company. 

 

	4.2	Sears may terminate your employment at any time for Cause without notice or pay in lieu of notice, in which event your participation in the Sears benefits plan, pension
plan, if applicable, Annual Incentive Program and LTIP shall immediately cease. 

  

	4.3	In the event that you die or are unable to perform substantially all of the your employment related duties for a period of more than either three (3) consecutive
months, or six (6) months in the aggregate during any twelve (12) month period, the Company will not be obligated to provide you with notice of termination or pay in lieu of such notice, and you or your estate will not be entitled to
receive any further compensation or benefits pursuant to the terms of this Agreement other than those which have accrued up to the last day you are Actively Employed with the Company. This provision shall not affect your entitlement to any benefits
under the terms of the Company’s Long-Term Disability Plan. 

  

	4.4	Should Sears decide to terminate your employment on a without cause basis or should you terminate your employment for Good Reason (as defined below), and no future
agreement is executed which supersedes this Agreement, during the first twelve (12) months of your employment, you will be provided with twelve (12) months of salary continuation equal to your Base Salary (the “Salary Continuation
Period”), provided that, after the first anniversary of the Effective Date, the Salary Continuation Period will be extended by one (1) month for each complete month worked beyond your first anniversary up to a maximum Salary Continuation
Period of twenty four (24) months. This amount is inclusive of all termination and severance pay to which you may be entitled under the ESA or other applicable employment standards legislation. Further, and notwithstanding the terms of
the LTIP, should Sears decide to terminate your employment on a without cause basis or should you terminate your employment for Good Reason, and no future agreement is executed which supersedes this Agreement, provided that you were Actively
Employed for the first twelve (12) months of the performance period relating to such LTIP, you will be entitled to a pro-rata share of any LTIP target incentive awards (based on you active months of employment during the related performance
period), payable at the time the award is scheduled to be paid, provided that your achievement of the financial performance metrics relating to such LTIP as of the end of the fiscal month immediately preceding such termination is equal to or greater
than the established fiscal performance targets as of the end of such fiscal month and provided that at the end of the full performance period the financial performance metrics relating to such LTIP have also been achieved. Further, should Sears
decide to terminate your employment on a without cause basis or should you terminate your employment for Good Reason, and no future agreement is executed which supersedes this Agreement, you will also be paid the next installment due under
Section 3.2. 

 For the purposes of this Agreement, Good Reason means any of the following, without your
prior written consent: (i) a material reduction of your Base Salary or (ii) your removal from the board of directors of the Company. Notwithstanding the foregoing, you must give notice to the Company within 15 days following your knowledge
of an event constituting Good Reason describing the alleged failure or action by the Company and advising of your intention to terminate your employment for Good Reason, provided that if you fail to provide such notice within 15 days, such event
shall not constitute Good Reason under this Agreement. The Company shall then have 30 business days to correct such failure or action following the delivery of such written notice (the “Cure

  
 3 

 
Period”). In the event that the Company does not correct such failure or action, you shall provide notice to the Company that it has not corrected such failure or action and shall resign
from employment for Good Reason at the end of the Cure Period. 
 Sears’ obligations hereunder shall be reduced on a
dollar-for-dollar basis (but not below your statutory entitlement to notice and severance pay, if applicable, under the ESA), by the amount, if any, of fees, salary, wages or other compensation that you earn from a subsequent employer (including
those arising from self-employment) during the Salary Continuation Period. 
  

	4.5	Upon termination of your employment with Sears for any reason under the terms of this Agreement (whether initiated by you or Sears), you will execute a binding general
release and waiver of claims in the form attached as Schedule “A” hereto, which is incorporated by reference herein. Upon payment of the amount set forth in Section 4.4 above, you shall have no claim against Sears in respect of your
employment or the cessation of your employment, for damages or otherwise, except in respect of payment of monies earned, due or owing to the date of termination. Sears shall have no obligation to make the payments described in Section 4.4 until
and unless you execute and deliver to Sears a release in the form attached hereto as Schedule “A”. Should you elect not to execute and deliver such release or should you subsequently revoke such release, you shall only be entitled to
receive such notice of termination and severance pay, if applicable, to which you are entitled pursuant to the ESA, or other applicable employment standards legislation, as amended from time to time. 

If you are terminated without cause, you will be entitled to continue in the Sears’ benefits plans and pension plan, if applicable,
during the statutory notice period under the ESA. Your participation in the Annual Incentive Program and the LTIP will cease as of the last day you are Actively Employed. 

 

	4.6	At the time your employment with Sears ceases, any vacation that you have taken in excess of that which you have accrued to date will be deducted from any outstanding
income owed to you, including but not limited to regular salary, vacation pay, termination pay and/or severance pay. 

  

	4.7	You agree to promptly return all Sears’ property at the time of cessation of employment for any reason. 

 

	4.8	For the purposes of this Agreement “Cause” means (i) a material breach by you (other than a breach resulting from your incapacity due to a disability) of
your duties and responsibilities which breach is demonstrably willful and deliberate on your part, is committed in bad faith or without reasonable belief that such breach is in the best interests of Sears and is not remedied in a reasonable period
of time after receipt of written notice from Sears specifying such breach; (ii) the commission by you of an indictable offence; or (iii) dishonesty or willful misconduct in connection with your employment. 

 

	4.9	The Company’s obligation to pay you the amount set out above in Section 4.4, is conditional upon your ongoing compliance with the protective covenants
contained in Section 5 below. In the event that you breach any of the protective covenants contained in Section 5, (1)you will remain bound by all of the terms of this Agreement, (2) the payments made pursuant to Section 4.4 will
automatically cease, and you will be required to return any payments already made pursuant Section 4.4 (3) the Company will be under no further obligation to pay you any payments under Section 4.4, subject to any payments that may be
required to satisfy the ESA, and (4) the Company may seek injunctive or other relief as set out blelow. 

  
 4 

	5.	PROTECTIVE COVENANTS 

  

	5.1	In consideration of the offer set out herein and other good and valuable consideration, the receipt and adequacy of which are hereby acknowledged, you agree to the
following: 

 (a) Non-Disclosure and Non-Solicitation. You acknowledge and agree to be bound by the
following: 
 i. Non-Disclosure of Sears Confidential Information. You will not, during the term of your
employment with Sears or thereafter, except as Sears may otherwise consent or direct in writing, reveal or disclose, sell, use, lecture upon or publish any “Sears Confidential Information” (as defined herein) until such time as the
information becomes publicly known other than as a result of its disclosure, directly or indirectly, by you. 

ii. Sears Confidential Information. For purposes of this Agreement, “Sears Confidential
Information” means trade secrets and non-public information which Sears designates as being confidential or which, under the circumstances, should be treated as confidential, including, without limitation, any information received in
confidence or developed by Sears, its long and short term goals, vendor and supply agreements, databases, methods, programs, techniques, business information, financial information, marketing and business plans, proprietary software, personnel
information and files, client information, pricing, and other information relating to the business of Sears that is not otherwise generally known or accessible by the public or in the industry. 

iii. Non-Solicitation of Employees. During your employment with Sears and for one (1) year from the date of
termination, regardless of the reason for such termination, you shall not, directly or indirectly, solicit or encourage any person to leave her/his employment with Sears or assist in any way with the hiring of any Sears employee by any future
employer or other entity. 
 (b) Non-Competition. You acknowledge that as a result of your position at Sears you will
learn or develop Sears Confidential Information and that use or disclosure of Sears Confidential Information is likely to occur if you were to render advice or services to any Sears Competitor. 

i. Therefore, should your employment with Sears cease for any reason, you will not, for one (1) year from the date
of termination, directly or indirectly, aid, assist, participate in, consult with, render services for, accept a position with, become employed by, or otherwise enter into any relationship with (other than having a passive ownership interest in or
being a customer of) any Sears Competitor in Canada. Notwithstanding the foregoing, in the event that the Salary Continuation Period has been extended beyond one (1) year, the period applicable to this Section 5.1(b) shall be extended to
match the duration of the Salary Continuation Period. 
 ii. For purposes of this Agreement, “Sears
Competitor” means: 
 1. Those Canadian operations of the companies listed on Schedule B hereto,
each of which you acknowledge is a Sears Competitor, whether or not it falls within the categories in subsection 5.1(b)(ii)(2), below, and further acknowledges that this is not an exclusive list of Sears Competitors and is not intended to limit the
generality of subsection 5.1(b)(ii)(2), below; and 
 2.(A) Any party engaged in any retail business (whether in
a department store, specialty store, discount store, direct marketing, or electronic commerce or other 

  
 5 

 
business format), that consists of selling furniture, appliances, electronics, hardware, auto parts and/or apparel products, or providing home improvement, product repair and/or home services,
with combined annual revenue from Canadian operations in excess of $1 billion, (B) any vendor with combined annual gross sales of services or merchandise to Sears in excess of $200 million, or (C) a party engaged in any other line of
business, in which Sears has commenced business prior to your date your employment ends with Sears having annual gross sales in that line of business in excess of $100 million. 

iii. You acknowledge that Sears shall have the right to modify Schedule B periodically to include
(1) emergent Canadian competitors in Sears existing lines of business and (2) Canadian competitors in lines of business that are new for Sears, in each case, with your prior written consent, which consent shall not be unreasonably
withheld. 
 (c) Compliance with Protective Covenants. You will provide Sears with such information as Sears may from
time to time reasonably request to determine your compliance with this Section 5. You release Sears, its agents and employees, from all liability for any damage arising from any such reasonable contacts or communications. 

(d) Necessity and Reasonableness. You agree that the restrictions set forth herein are necessary to prevent the use and disclosure
of Sears Confidential Information and to otherwise protect the legitimate business interests of Sears. You further agree and acknowledge that the provisions of this Agreement are reasonable, in particular the definition of “Sears
Competitor”. You further recognize and expressly acknowledge that: (i) the application of Section 5 of this Agreement will not have the effect of prohibiting you from earning a living in a satisfactory manner in the event of the
cessation of your employment, (ii) Sears would be subject to an irreparable prejudice should one or several of the provisions of Section 5 be infringed, and (iii) in the event of any breach, Sears shall be authorized and entitled to
obtain from any court of competent jurisdiction interim and permanent injunctive relief and an accounting of all profits and benefits arising out of such violation, which rights and remedies shall be cumulative and in addition to any other rights,
damages or remedies to which Sears might otherwise be entitled. 
  

	6.	ONGOING OBLIGATIONS OF EMPLOYMENT 

  

	6.1	You are required to comply with the Code of Business Conduct (the “Code”), which may be amended from time to time, and to certify their understanding and
compliance in writing on an annual basis. The Code is attached for your review. Please review the Code before the start of your employment, and ensure that you get clarification if you are unclear on any requirements contained in the Code.

 Additional information regarding Sears policies and procedures can be obtained on the Sears Intranet. You are
encouraged to become familiar with our internal site. 
  

	6.2	As an ongoing requirement of employment with Sears, you understand and agree that: 

 

	 	(a)	in the course of employment, Sears will be required, from time to time, to collect, use and disclose personal information in order to administer the employment
relationship and you consent to such collection, use and disclosure; 

  

	 	(b)	any information relating to Sears policies, processes, structures, operations, customers, or other associates acquired by you in the course of, or as a result of, your
employment with Sears is confidential. Such information shall be treated as confidential, and may not be disclosed by you to any other person, firm or company without prior written authorization. Confidential information or material includes but is
not limited to financial information, plans, strategies, corporate information, and any other information deemed “confidential”, unless such information is available to the general public or in the public domain; and

  
 6 

	 	(c)	Sears shall retain all rights attached to any of the work, products or results created, produced or manufactured by you arising out of or related to your employment.
Such ownership and the sole right to obtain copyright in such property shall be vested in Sears, and Sears shall be at liberty to effect and be responsible for the registration, use, disbursement and other protection of such property as it may seem
fit. 

  

	7.	GENERAL 

  

	7.1	The titles and descriptive headings of the articles of this Agreement are inserted solely for convenience, are not part of this Agreement and do not in any way limit or
amplify this Agreement. 

  

	7.2	In the event of any conflict or inconsistency between the provisions of this Agreement and the provisions of any Schedule hereto or any document herein, the provisions
of this Agreement shall prevail. 

  

	7.3	In the event that any provision, or part thereof contained in this Agreement, or any schedule of this Agreement is prohibited or declared invalid, illegal or
unenforceable by a court or other lawful authority, this Agreement and all schedules to this Agreement shall continue in force, with respect to the enforceable provisions, and all rights and remedies accrued under the enforceable provisions shall
survive any such declaration. 

  

	7.4	This Agreement and any schedules or documents incorporated by reference herein constitute the entire Agreement between Sears and you and supersedes all prior
negotiations and oral and written understandings, if any. 

  

	7.5	No supplement, waiver, amendment, modification or rescission of this Agreement shall be binding unless set forth in writing and signed by Sears.

  

	7.6	This Agreement shall enure to the benefit and be binding upon each party and its heirs, executors, administrators, successors and permitted assigns.

  

	7.7	This Agreement shall be governed by and construed in accordance with the laws in force in the Province of Ontario and shall be treated in all respects as an Ontario
contract. The parties submit to the jurisdiction of the Courts of Ontario with respect to any dispute, claim or other matter arising under this Agreement and the Courts of Ontario shall have exclusive jurisdiction with respect to any such dispute,
claim or other matter. 

  

	7.8	You hereby represent and warrant that you are not party to or bound by the terms of any agreement with any previous employer or any other party that would prevent you
from performing services for Sears, or restrict your ability to perform your obligations under this Agreement. You represent and warrant that you are not, at the time of entering this Agreement, a member of any board of directors of any for-profit
or non-profit entity, or a party to any agreement, written or oral, with any entity for which you would receive remuneration for your services, except as disclosed to Sears and approved in writing prior to the Effective Date. You further represent
and warrant to Sears that in the performance of your duties for Sears you shall not improperly bring to Sears or use any trade secrets, confidential information or other proprietary information of any third party; and that you will not infringe the
intellectual property rights of any third party. 

  

	7.9	You acknowledge that you have been given the opportunity to read, evaluate and discuss the provisions of this Agreement and the attached documents with your personal
advisors and with representatives of Sears. 

  
 7 

	7.10	In consideration of accepting this Agreement from Sears, you expressly authorize Sears to deduct and withhold any documented amounts properly owing to Sears, including
but not limited to any vacation taken in excess of accrued entitlement, from any sums owing by Sears to you. You acknowledge that this paragraph constitutes a formula from which a specific amount may be calculated and is good and sufficient
authorization for the purposes of all applicable legislation. 

  

	7.11	You acknowledge that this Agreement is conditional upon the successful completion of references, background check and verification of your educational credentials. In
the event that these checks do not meet Sears’ standards, you understand that this Agreement is terminated and that you are not entitled to notice or pay in lieu of such notice in the event of such termination of this Agreement.

  

					
	SEARS CANADA INC.	 		 	
			
	

	 		 	

	 Per:   Chairman of Human Resources and
 Compensation Committee
	 		 	Calvin McDonald

  
 8 

 Schedule A 
 SETTLEMENT AND RELEASE AGREEMENT 
 IN CONSIDERATION of the provision of the terms
set out in the Letter of Termination dated ______ and hereto attached and other good and valuable consideration, the sufficiency of which is hereby acknowledged, I, _________________, on behalf of myself, my heirs, successors, administrators and
assigns (hereinafter collectively referred to as the “Releasor”), agree to hereby release and forever discharge Sears Canada Inc., its parents, affiliates and associated companies, subsidiaries, officers, directors, employees, agents and
their successors and assigns, (collectively, “Sears”) jointly and severally from any and all actions, causes of actions, contracts, covenants, whether express or implied, torts (intentional and unintentional), and any claims of any nature
and kind whatsoever, including, but not limited to any vacation pay entitlements, claims and demands for damages, including any disability claims, loss of benefit claims, indemnity, costs, interest, loss, bonus, vacation, incentive compensation, or
injury of any nature and kind whatsoever and howsoever arising, whether statutory or otherwise and specifically including, but not limited to, any claim under the applicable employment standards legislation (including but not limited to claims for
wages, notice, severance, vacation pay or termination pay), Human Rights Code, Labour Relations Act, Occupational Health and Safety Act and Workplace Safety and Insurance Act, and any successor legislation, which I may
heretofore have had, may now have, or may hereinafter have, in any way relating to my engagement by, hiring by, my employment with or the cessation of my engagement/employment by Sears. 
 I AGREE not to make any claims or demands, or commence, maintain or prosecute any action, cause or proceeding for damages, compensation, loss or any other relief whatsoever against Sears arising out of my
employment with Sears or the termination of that employment. I further agree that this Settlement and Release Agreement shall operate conclusively as an estoppel and complete bar in the event of any such claim, action or proceeding, and may be plead
as such, and that I will be liable to Sears for its costs and expenses, including reasonable legal fees, incurred in responding thereto. For clarity, I further agree that, as a condition of this Settlement and Release Agreement, I will take all
necessary steps to ensure the withdrawal or dismissal of such claim or complaint. 
 I ACKNOWLEDGE AND AGREE that I shall not make any claim or
demand or take any action or proceeding in connection with any matter covered by this Settlement and Release Agreement against any other person or corporation who might claim contribution or indemnity from Sears by virtue of the said claim or
proceeding. I agree that if any such claim, demand, action or proceeding is made by me, Sears may raise this document as an estoppel and complete bar to any such claim, demand, action or proceeding and that I will be liable to Sears for its costs
and expenses, including reasonable legal fees, incurred in responding thereto. 
 AND FOR THE SAID CONSIDERATION, I hereby confirm that I
have considered whether I presently have any possible claim against Sears in respect of the applicable Human Rights Code, and confirm that I either have no such claim or that this Settlement and Release Agreement expressly compensates me for
any such claim and that I seek no further right or remedy in respect of any possible claim. 
 I AGREE that the terms and conditions of this
Settlement and Release Agreement are confidential and I undertake not to divulge or communicate its contents, in whole or in part, directly or indirectly, to anyone other than to receive professional advice. 

I AGREE that in the event I should file any legal complaint with respect to my employment or the cessation of my employment with Sears contemplated
hereunder, I will immediately reimburse Sears for any and all consideration provided pursuant to this Settlement and Release Agreement. 

  
 9 

 I AGREE not to, at any time, publicly comment in any adverse fashion, whether verbally or in writing, about
Sears or any present or former employees, officers, or directors of Sears. 
 I ACKNOWLEDGE AND AGREE to indemnify and save harmless Sears from
any and all claims or demands under the Income Tax Act of Canada, the Income Tax Act of the applicable province the Canada Pension Plan, the Employment Insurance Act of Canada, including any regulations made under the
Employment Insurance Act, and any other statute or regulations for or in respect of any failure by Sears to withhold income tax, Canada Pension Plan premiums, employment insurance premiums or benefit overpayments or any other tax premium,
payment or levy from all or any part of the consideration and any interest or penalties relating to the failure to withhold any costs or expenses incurred in defending such claims or demands. 
 I ACKNOWLEDGE AND AGREE that during my employment I acquired confidential information which is the exclusive property of Sears which I shall not use in any manner without the express written permission of
Sears. I recognize that all material and information that has been disclosed to me during my employment is confidential information that could be used to the detriment of Sears. As such, I will fulfill my obligations to hold confidential the
information I received during my employment with Sears. I acknowledge and agree that the requirement to keep confidential the information acquired by me during my employment is reasonable and necessary for the protection of Sears. 

I ACKNOWLEDGE AND AGREE that the giving of the consideration herein is not deemed to be any admission of liability on the part of Sears and, in fact,
liability is expressly denied. 
 I ACKNOWLEDGE AND AGREE that in the event that any provision of this Settlement and Release Agreement is
deemed void, invalid or unenforceable by a court of competent jurisdiction, the remaining provisions shall remain in full force and effect. 

THIS SETTLEMENT AND RELEASE AGREEMENT has been made in, and shall be construed in accordance with the laws of the Province of Ontario, and shall enure to
the benefit of, and be binding upon me and my heirs, executors, administrators, legal and personal representatives, successors, and assigns. 

I DECLARE THAT I fully understand the terms of this Settlement and Release Agreement and have had the opportunity to obtain independent legal advice
prior to executing this document, and that I have signed this document freely, voluntarily and without constraint. I voluntarily accept the consideration offered for the purpose of making full and final compromise and settlement of all claims as
noted above. 
 IN WITNESS WHEREOF I have executed this Settlement and Release Agreement at ________________, 

DATE:
                                 SIGNED, SEALED AND DELIVERED IN THE PRESENCE OF:

  

					
			
	  
	 		 	  

	Employee Name	 		 	WITNESS
			
	  
	 		 	  

	Print name:	 		 	Print name:

  
 10 

 Schedule B 
 The following companies (including in each case affiliates, parent companies, subsidiaries controlled by the company and successors to the business of the company): 

Hudson’s Bay Company (Hbc) (including The Bay, Zellers Inc. and Home Outfitters divisions), 

Canadian Tire Corporation Limited, 
 Wal-Mart,

 Best Buy, 
 Gap Inc. (including the
Banana Republic and Old Navy divisions), 
 Office Depot Inc., 
 InterTAN Canada Ltd.(currently doing business as “The Source by Circuit City”), 
 The
Home Depot Inc., 
 Le Group RONA Inc. (RONA), 
 Home Hardware Stores Limited, Reitmans (Canada) Limited, 
 Staples, 

The Business Depot, Ltd, 
 Lowes, 

Target Corporation, 
 Kohl’s, 

Shoppers Drug Mart. 

  
 11

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