Document:

EX-10.5

 Exhibit 10.5 

RETAIL OPERATIONS AGREEMENT 

This RETAIL OPERATIONS AGREEMENT (the “Agreement”) is entered into by Lands’ End, Inc., a Delaware corporation
(“LE”) and Sears, Roebuck and Co., a New York corporation, (“SRC”). Certain terms are defined where they are first used below; while others are defined in Appendix #1 (Glossary). SRC and LE each are
sometimes referred to herein as a “Party” and together sometimes are referred to as the “Parties.” 
 Terms and
Conditions 
 For good and valuable consideration, the receipt of which SRC and LE acknowledge, SRC and LE agree as follows: 

 

	1.	PROVISION OF SERVICES. 

 1.1 Retail Operations. 

(a) Services. Solely in connection with the Leases (as that term is defined below), SRC agrees to provide LE certain
retail operations services as further described in this Agreement and the attached Appendix #2 (the “Services”). Except as expressly stated on Appendix #2 (Services), in the event of any conflict or inconsistency
between this Agreement and Appendix #2, this Agreement will control. 
 (b) LE Shops. The Services under this
Agreement are provided solely for: (i) the LE Merchandise identified in Appendix #1 and (ii) the “Lands’ End Shops at Sears” identified in the Leases as of the Effective Date; provided that as locations are
removed from the Leases they shall be removed from this Agreement as well subject to the Wind-down Activities set forth in Section 13.6 (collectively, the “LE Shops”). The sale of Merchandise by LE in LE Shops and the provision
of Services with respect thereto by SRC shall be referred to herein as the “LE Shop Program.” All Merchandise will be procured and provided by LE and shall bear “LE Marks” (as defined below) and no Merchandise shall bear
“Sears Marks” (as defined below). LE shall be the sole owner of, and be solely responsible for, all Merchandise sold under this Agreement. 

(c) Prior Services. The intent of the parties is that the Services described herein are those that SRC was providing to
LE prior to the Effective Date in connection with the sale of the Merchandise in Sears Locations; provided, however, that the parties have endeavored to modify such Services as necessary to reflect the spin-off of LE and to reflect that
Merchandise is owned by LE. If a Party identifies a service that was previously provided by SRC that is not described in this Agreement, it will notify the other Party’s Contact Person (as provided for in Section 8.14 below), and the
Parties will work together in Good Faith to determine whether they wish to have such service added to this Agreement; any such addition will require a written amendment to this Agreement signed by both parties to be effective. The Parties will
include in such an amendment, if they agree to execute one, a description of the service, the Fees, and allocation of expenses for such Service. 

(d) Amendments. Unless otherwise agreed in writing by the Parties, the Services to be provided by SRC under this
Agreement are limited to those expressly stated herein, including those described in Section 1(c) above. This Agreement, and the Services, Fees and Expenses hereunder, may only be modified by a written amendment

 
which must be signed by both parties to be effective (each an “Amendment”). LE acknowledges that modifications to this Agreement will require certain internal approvals by SRC
and therefore absent an Amendment; LE will not rely (and any such reliance would be unreasonable) upon any proposed amendment or course of dealing by the parties. 

(e) Changes in the Services. If LE desires to make changes in this Agreement to provide for different or additional
Services (each a “Service Change”) to be provided by SRC, the parties shall comply with the following Service Change process: 

(i) LE shall prepare a written proposal for the Service Change including a description of the services, deliverables, schedule,
in such detail as would be needed by an unaffiliated third party contractor to develop a competent price proposal for similar services. 

(ii) If SRC is willing to consider the Service Change, SRC shall send to LE a response; including any changes to the services,
deliverables, schedule and fees under this Agreement. 
 (iii) All Service Change proposals/responses must be delivered by a
Party’s Contact Person to the other Party’s Contact Person. If the Parties desire, each in their sole discretion, to move forward with a Service Change the parties will negotiate, a proposed amendment to this Agreement documenting the
Service Change, after which the parties will need seek all necessary internal approvals prior to signing the proposed amendment. In the absence of a signed Amendment, the Parties must fulfill their obligations under this Agreement without regard to
such proposed amendment. 
 (f) No Legal Service/Advice. Notwithstanding anything herein to the contrary, SRC shall
not provide any legal services or legal advice to LE, LE is not entitled to rely on SRC for legal advice and counsel, nor shall SRC’s advice be construed as legal advice. 

1.2 Leases. The Parties have entered into a Master Lease, which is attached as Appendix #3 and a Master Sub-Lease, which
is attached hereto as Appendix #4, (each a “Lease” and collectively, the “Leases”). As it pertains to each Lease and each LE Shop under a Lease, this Agreement is subject and subordinate to all of the terms,
agreements and conditions contained in the applicable Lease. If any conflict should arise between the terms of this Agreement and the applicable Lease, first, the Lease and then, secondarily, this Agreement shall control. 

1.3 LE Shop Program Start Date. The LE Shop Program will commence on the Effective Date. 

1.4 No Representations. Neither Party makes any promises or representations whatsoever as to the potential amount of business LE
and SRC can expect at any time from the LE Shop Program. 

  
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	2.	TERM.  

 This Agreement shall be effective immediately following the
“Effective Time” specified in the Separation and Distribution Agreement (the “Separation Agreement”) to be executed and delivered by LE and Sears Holdings Corporation (the date on which the Effective Time occurs, the
“Effective Date”). The calendar day that becomes the Effective Date will be inserted on Appendix #5 after the Effective Date has occurred. Unless sooner terminated on the limited grounds expressly provided for in this
Agreement, this Agreement shall remain in effect from the Effective Date through the term of each Lease; provided that this Agreement shall be automatically terminated, as to each LE Shop upon expiration or termination of the lease of such LE
Shop under its applicable Lease (the “Service Period”). 
  

	3.	USE OF MARKS AND ADVERTISING. 

 3.1 Grant of License – Sears Marks.
Subject to all the terms and conditions of this Agreement, SRC hereby grants to LE and its Affiliates, for and during the Service Period, a non-exclusive, royalty-free, fully paid up, non-transferable and terminable right and license to use the
marks contained in Appendix #6 or such other marks as SRC and LE may agree upon (collectively, the “Sears Marks”), for the limited purpose of identifying the locations of the LE Shops, subject to SRC’s prior review and
approval of each use. Such approval shall not be unreasonably withheld or delayed. LE acknowledges that the use of any Sears Mark will not confer upon LE any proprietary rights to the Sears Mark, and LE will not question, contest, or challenge
SRC’s or its Affiliates’ ownership of a Sears Mark. LE will not register or attempt to register any Sears Mark, or any trade names, or trademarks similar to them. Nothing in this Agreement will be construed to bar SRC or its Affiliates
from protecting its right to the exclusive ownership of a Sears Mark against infringement or appropriation by any party or parties, including LE. SRC will have the right to control the quality and nature of any use of the Sears Marks, and LE will
conform to the standards set by SRC in conjunction therewith. All goodwill related to the use of any Sears Mark under this license shall inure to the benefit of SRC or its Affiliates. LE shall comply at all times with any instructions provided in
writing by SRC from time to time regarding use of the Sears Marks. LE shall use the Sears Marks only as expressly authorized in this Agreement and shall take all reasonable steps to preserve the goodwill, prestige and reputation associated with
the Marks. LE acknowledges that SRC may, from time to time, issue additional guidelines or instructions regarding the use of the Sears Marks, and LE shall comply with any reasonable guidelines and instructions. LE shall not sublicense any
rights in any Sears Mark without SRC’s prior written consent, which SRC may withhold in its sole discretion. 
 3.2 Grant of
License – LE Marks. Subject to all the terms and conditions of this Agreement, LE hereby grants to SRC and its Affiliates, for and during the Service Period, a non-exclusive, royalty-free, fully paid up, non-transferable and terminable
right and license to use the marks contained in Appendix #7 (collectively, the “Listed LE Marks”), as well as such other marks as LE applies to Merchandise (together with the Listed LE Marks, collectively, the “LE
Marks”), for the limited purpose of promoting the LE Shops and the Merchandise, subject to LE’s prior review and approval of each use. Such approval shall not be unreasonably withheld or delayed. SRC acknowledges that the use of any LE
Mark will not 

  
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confer upon SRC any proprietary rights to the LE Mark. SRC will not register or attempt to register any Listed LE Mark, or any trade names, or trademarks similar to them. Nothing in this
Agreement will be construed to bar LE or its Affiliates from protecting its right to the exclusive ownership of a LE Mark against infringement or appropriation by any party or parties, including SRC. LE will have the right to control the quality and
nature of the use of all LE Marks, and SRC will conform to the standards set by LE in conjunction therewith; provided that LE shall be obligated to reimburse SRC for any costs SRC incurs to abide LE’s requirements associated with the use
of LE Marks in connection with the LE Shop Program. All goodwill related to the use of any LE Mark under this license shall inure to the benefit of LE or its Affiliates. SRC shall not sublicense any rights in any LE Mark (other than for use by SRC
Personnel providing services in connection with this Agreement), without LE’s prior written consent, which LE may withhold in its sole discretion. 

3.3 Advertising. LE shall advertise the Merchandise (including advertising that such Merchandise is available at the LE Shop
locations) and the LE Shop locations in a manner consistent with and at least as frequent as its practices prior to the Effective Date. SRC has no obligation to advertise the Merchandise or the LE Shop Program, but SRC may elect to offer joint
advertising programs to LE or to participate in joint advertising programs offered by LE. Each Party may opt to participate in such joint advertising efforts, in its sole election, during the Service Period. If the Parties elect to participate in
joint advertising efforts, the parties will negotiate, in Good Faith, the allocation of the cost between the parties. For all LE advertisements that reference the LE Shops or otherwise use the Sears Marks, LE shall submit to SRC (a) all signs
and advertising copy (including sales brochures, telemarketing scripts, newspaper advertisements, radio and television commercials, and internet advertising), and (b) all promotional plans and devices (including coupons, contests, events and
giveaways); provided that once a use has been approved, LE does not need to request approval to use the same mark in the same manner again. LE shall not use any such advertising material, promotional plan or device without the prior written approval
of SRC, which approval shall not be unreasonably withheld. SRC has the right to audit the LE’s advertising and promotional materials and practices at any time to assess LE’s party’s compliance with this Agreement. LE shall at all
times adhere to SRC’s written policies regarding interaction with the media. 
 3.4 Limitations on use/Phase-out of APOSTROPHE
mark. Notwithstanding the foregoing, the Parties further agree that with regard to the APOSTROPHE trademark: 1) that LE’s use shall be limited to its current use as a title of its quarterly, on-line only, newsletter; and 2)
that LE shall discontinue all use of the APOSTROPHE trademark upon termination or expiration of the Service Period. 
 3.5 Promotion
and Goodwill; No Disparagement. Without limiting its obligations in Section 3.3, LE shall use commercially reasonable efforts to promote the LE Shops and maintain goodwill among its customers and Personnel towards SRC, the LE Shops and
the LE Shop Program. LE shall (and LE shall cause its Personnel) not to disparage SRC, the LE Shops and the LE Shop Program. 
  

	4.	FEES. 

 4.1 SRC Fees. As compensation for the SRC services provided herein,
LE shall pay SRC the fees (the “SRC Fees”) in accordance with Appendix #2 (“Service Description”). 

  
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 4.2 Rights of Recoupment and Setoff. SRC has the right to invoice LE for any
liability or obligation that LE’s may owe to and all SRC or its affiliates. LE shall pay such liability or obligation promptly upon demand. If LE does not pay such SRC invoices within ten days, SRC shall have the right to reduce, withhold or
setoff against any payment due LE hereunder with respect to any such liability or obligation. SRC’s rights to recoupment and set-off shall be senior to any claim asserted by any other party against the payment. 

4.3 Expenses. In addition to the fees stated herein, unless otherwise expressly stated herein, LE will reimburse SRC for all
other reasonable out-of-pocket expenses actually incurred in its performance of the Services (“Expenses”). To the extent reasonably practicable, SRC will provide LE with notice of such Expenses prior to incurring them. If directed
by SRC, LE will pay directly any or all third-party contractors providing Services to or for the benefit of LE. The cost of all third-party Personnel used to perform the Services hereunder will be reimbursed by LE on a cost basis. Except as
otherwise provided for in this Agreement, each Party will bear its own expenses with respect to the transactions contemplated by this Agreement. Notwithstanding the above, if SRC or its Affiliates outsource a Service set forth in Appendix #2 for
which there is a fee assigned or the parties have agreed there is no fee; LE will only be liable for the fee stated therein, if any, subject to adjustment as provided therein (not the third party’s expenses). 

4.4 Reconciliation and Payments. LE will pay SRC Fees, Expenses and Transaction Taxes as set forth in Section 4.1
and with the payment terms set forth in Section 14.19 of the Separation Agreement. SRC shall pay LE all net cash (including check) proceeds collected from the sale of LE Merchandise to LE. LE will pay all Fees, Expenses and Transaction
Taxes within 10 days of SRC’s valid invoice to LE. Unless otherwise mutually agreed in writing, all amounts payable under this Agreement will be reconciled weekly and the parties will, after netting amounts due under the other Ancillary
Agreements, make payments to the Party who is owned the net amount by electronic transfer of immediately available funds to a bank account designated by such Party from time to time. All amounts remaining unpaid for more than 15 days after their
respective due date(s) will accrue interest as set forth in Section 14.19 (Payment Terms) of the Separation Agreement, until paid in full. Upon LE’s reasonable request, SRC will provide reasonable information to substantiate the
Fees and Expenses charged hereunder; to the extent such information is readily available to SRC. 
 4.5 Transaction Taxes.
Fees do not include applicable taxes. LE will be responsible for the payment of all taxes payable in connection with the Services including sales, use, excise, value-added, business, service, goods and services, consumption, withholding, and
other similar taxes or duties, including taxes incurred on transactions between and among SRC, its Affiliates, and third-party contractors, along with any related interest and penalties (“Transaction Taxes”). LE will reimburse
SRC for any deficiency relating to Transaction Taxes that are LE’s responsibility under this Agreement. Notwithstanding anything in this Section 4.6 to the contrary, each Party will be responsible for its own income and
franchise taxes, employment taxes, and property taxes. The Parties will cooperate in Good Faith to minimize Transaction Taxes to the extent legally permissible. Each Party will provide to the other Party any resale exemption, multiple points of
use certificates, treaty certification and other exemption information reasonably requested by the other Party. 
 4.6 Sales
Taxes. SRC will collect sales taxes from LE customers (“Sales Taxes”) and to the extent required by applicable law, SRC will hold the Sales Taxes in a constructive trust. 

  
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For as long as SRC files Sales Tax returns on behalf of LE under the Transitions Services Agreement, SRC will remit such Sales Taxes directly to the appropriate taxing authority. Upon expiration
of sales tax services in the Transition Services Agreement, SRC will transfer collected Sales Taxes and transmit associated Sales Taxes data to LE. All costs and expenses incurred by SRC in transferring such funds and transmitting such data to LE,
including all changes to SRC’s and/or LE’s systems required to transmit and receive such data will be charged to LE. 
  

	5.	PROCUREMENT AND SUPPLY OF MERCHANDISE AND LE SUPPLIES.  

 5.1 Overall
Responsibility. LE is solely responsible for the procurement and supply of Merchandise and LE Supplies to the LE Shops. Subject to the immediately foregoing sentence, SRC will assist LE as expressly provided for below. 

5.2 Transition. 

(a) Bulk LE Products. Prior the Effective Date: (i) LE entered purchase orders (“POs”) into SRC
and its Affiliates systems for all Merchandise needed for bulk initial floor loads (e.g. new goods, new locations and seasonal resets) for the LE Shops (“Bulk LE Products”); and (ii) POs for Bulk LE Products were issued in
SRC’s name. For all such open PO’s for Bulk LE Products as of the Effective Date, LE shall: (i) on the Effective Date assume the risk of loss for and the obligation to pay for such Bulk LE Products; and (ii) take title to such
goods: (A) for goods located in the United States, on the Effective Date, and (B) for goods outside the United States (including goods sourced overseas but not yet produced): (i) on the Effective Date, if such goods are subject to a
negotiable bill of lading, (ii) on the date, if any, that such goods become subject to a negotiable bill of lading, and (iii) goods never subject to a negotiable bill of lading, once such goods have cleared customs in the United States). 

(b) Other LE Merchandise and LE Supplies. LE retains sole responsibility for sourcing (in its own name, under its own
contracts), paying for, and delivering to the Sears Locations for the LE Shops all Merchandise that is not a Bulk LE Product (e.g., replenishments of LE Bulk Products) and all LE specific supplies (currently this consists of LE branded bags and LE
specific hangers, the “LE Supplies”) needed by the LE Shops. 
 (c) Supplier Relations. Within 5
business days of the Effective Date, LE will send each of its existing suppliers of Merchandise a notice in the form set forth in Appendix #8 (Supplier Notification). In addition, after the Effective Date, LE will directly contract with all
new suppliers of Merchandise. 
 (d) Continued Use of SRC and its Affiliates’ PO and Related Systems. After the
Effective Date, subject to the terms and conditions provided for herein, LE will continue to use SRC and its Affiliates’ purchase order and related systems (“Ordering Systems”) to enter orders for Bulk LE Products for the LE
Shops and transmit them to its suppliers. SRC will endeavor to modify such Ordering Systems so that the POs generated by them are issued in LE’s name and/or under LE’s account with its supplier. LE will not use the Ordering Systems for any
goods that are not Bulk LE Products. Notwithstanding the use of Ordering Systems, ownership of the Merchandise shall remain with LE (it being understood that the use of the Ordering Systems is to facilitate tracking and accounting for Merchandise
within SRC’s systems). 
 (e) Future Orders of Bulk LE Products. After the Effective Date, LE will continue to be
responsible for entering all orders for Bulk LE Products for the LE Shops’ 

  
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in the Ordering Systems and for releasing the resulting POs to its suppliers. LE will maintain a distinct EDI identifier for its purchases of Merchandise for the LE Shops and arrange for its
vendors to create distinct DUNS numbers for LE. LE will cause its supplier to work with SRC and its Affiliates as LE’s agent for orders for Bulk LE Products. 

(f) Movement of Bulk LE Products. 

(i) Domestic Goods. For Bulk LE Products produced in the United States, SRC and its Affiliates will (when directed by LE
and on LE’s behalf) continue to arrange the shipment of such goods to LE’s Dodgeville, WI distribution facility (the “LE DC”); subject to SRC and its Affiliates’ standard logistic policies (as SRC modifies them from
time to time). LE will be charged for all costs SRC or its Affiliates incur in shipping such products in accordance with Appendix #2. 

(ii) International Goods. For Bulk LE Products produced outside the United States, LE shall use freight forwarder(s) and
carrier(s) mutually acceptable to both Parties to arrange shipment of Bulk LE Products to the LE DC under LE’s importer of record number; subject to SRC and its Affiliates’ standard logistic policies (as SRC modifies them from time to
time). SRC and its Affiliates will (when directed by LE and on LE’s behalf) assist the Parties’ agreed upon freight forwarder(s) and carrier(s) with such shipments, as LE’s agent. The carrier(s) contract for the international shipment
of LE Bulk Product will be in LE’s name. SRC may require the freight forwarded contracts to be in LE’s or SRC’ name. LE’s will be charged for all costs SRC or its Affiliates incur in assisting with the shipment of LE Bulk
Products in accordance with Appendix #2. For clarity, the Parties agree that LE shall have sole liability for all customs duties, taxes, penalties and fines regarding the LE Bulk Products; notwithstanding any assistance SRC or its Affiliates
provide or fail to provide. 
 (iii) Receipt of Goods by LE. LE shall receive all Bulk LE Products at the LE DC and
enter them into an inventory system provided by SRC (multiple systems are used today, and they and any successor(s) to them are collectively referred to herein as the “Inventory System”). LE will also be responsible for coordinating
with SRC and its Affiliates the pick-up and reshipment of such Bulk LE Products to SRC and its Affiliates’ regional replenishment centers (“Sears RRCs). LE is not permitted to store Merchandise (including LE Bulk Products) or LE
Supplies in SRC’s and its Affiliates’ RRCs or other distribution facilities. 
 (iv) Transport of Bulk Goods to
LE Shops and Receipt of Merchandise and LE Supplies. SRC and its Affiliates will (when directed by LE and on LE’s behalf): (A) arrange the shipment of LE Bulk Products from the LE DC, through the Sears RRCs (on a cross-dock basis) to
SRC stores hosting the LE Shops; subject to SRC’s and Affiliates standard logistic policies (as SRC modifies them from time to time), and (B) receive the LE Supplies, the LE Bulk Products and other LE Merchandise (on an assumed receipt
basis) and move them from the 

  
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loading dock of the Sears Location, to the LE Shop location within the Sears Location, consistent with the Parties’ past practices. LE must co-ordinate the delivery of all Merchandise and LE
Supplies with SRC and its Affiliates (including the quantity, timing and manner of delivery) prior to such goods shipment to a Sears Location. The Designated LE Staff will have the same role in receiving the LE Bulk Product and stocking the selling
floor as they have had in the past (subject to any store wide re-distribution of receiving/stocking responsibilities SRC may implement in the future). 

(g) Reconciliation and Payment of Invoices for LE Bulk Products. SRC (or its Affiliates) will, on LE’s behalf,
reconcile all invoices received for LE Bulk Products ordered through the Ordering Systems and received into the Inventory System by LE (the “Bulk Invoices”), and work with LE’s supplier to reconcile any discrepancies regarding
such Bulk Invoices and, if necessary, SRC (or its Affiliates) will issue charge backs against such Bulk Invoices on LE’s behalf. SRC (or its Affiliates) will, after such reconciliation, arrange for payment of the Bulk Invoices on LE’s
behalf. SRC will provide LE regular reports of upcoming due dates for Bulk Invoices, amounts charged back and paid on such Bulk Invoices (by or at the direction of SRC and its Affiliates). SRC may, at any time, (i) require LE to pay SRC in
advance for all amounts due under the Bulk Invoices prior to SRC making payments on such Bulk Invoices on LE’s behalf, (ii) pay Bulk Invoice on LE’s behalf and require LE to immediately re-pay SRC such amounts, or (iii) require
LE to permit SRC access to a LE bank account so that SRC may direct payment of the Bulk Invoices from such LE bank account. SRC may switch between the foregoing methods of payment, at any time, in its sole discretion. 

 

	6.	MERCHANDISE/RETAIL SELLING SPACE. 

 6.1 Merchandise. The parties agree that the
Merchandise available for sale at the LE Shops pursuant to this Agreement shall be owned by LE and except as provided for in this Agreement with respect to MOS by customer, LE shall retain title to the Merchandise until such time as it is sold by LE
in the manner and subject to the terms and provisions detailed in this Agreement. Title shall pass to the customer upon sale of Merchandise by LE. Title to Merchandise that is returned or exchanged by customer and that is returned to the sales floor
shall revert to LE. SRC will retain and place in an agreed upon location, receipt documents so that LE can key input the receipt documents. Upon sale of the Merchandise, SRC shall, as set forth herein, remit to LE the proceeds from Merchandise
sales, less the deductions as provided for in this Agreement. Except as otherwise provided herein, all cash and other amounts collected will be co-mingled with SRC’s other transactions, and SRC will determine the net amount, per LE Shop
location per day or on a weekly basis as provided in Section 4.5, due LE. All Sales Taxes collected by SRC will be handled in accordance with Section 4.6. Acceptance of consumer credit cards, debit cards, pre-paid access cards and private
label credit cards (collectively “Cards”) by SRC, Cards processing and fees, expenses, settlement, and other matters related to Cards transactions are governed exclusively by the Financial Services Agreement dated as of the
Effective Date by and between the Parties as amended from time to time, which Agreement and amendment(s), if any, are incorporated herein by reference. 

  
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 6.2 Dependent Services. The obligations of the SRC under this Agreement assume that
LE is, and will continue to receive, credit card, gift card and other electronic payment processing and other services under the Financial Services Agreement (collectively, the “Dependent Services”). In the event that LE ceases using SRC
for any of the Dependent Services (for any reason), LE shall not be relieved of its obligations under this Agreement and instead LE shall have the obligation to institute replacement services take such actions as necessary to permit the continued
operation of the LE Shops. SRC shall reasonably co-operate with LE in investigating proposed to modifications to the LE Shops and SRC Services under this Agreement to permit the continued operation of the LE Shops (e.g., by allowing LE to install
separate credit card terminals); however SRC shall not be obligated to implement any change, including changes to Sears Locations (including the LE Shops), SRC, its Affiliates and its/their Personnel’s systems, operations and SRC’s
Services under this Agreement (each a “Proposed Dependent Services Change”) which SRC objects to, in its sole discretion. All costs and expenses associated with a Proposed Dependent Services Change shall be borne solely by LE (and LE shall
immediately reimburse SRC for any such costs and expenses directly incurred by SRC, its Affiliates and its/their Personnel). All Proposed Dependent Services Changes shall be subject to Section 1.1(f) (Changes in Services). 

6.3 Inventory Shrink. “Shrink” means any and all loss of Merchandise, including: the excess of the perpetual
book inventory, per LE’s records, over the physical inventory counted by SRC, both stated in retail dollars. Notwithstanding any other provision of this Agreement or the Leases, LE shall solely have the risk of loss for the Merchandise. Unless
otherwise agreed to in writing by the parties, SRC shall apply the same loss prevention policies and techniques to the Merchandise as SRC applies to its own property; provided that LE shall be responsible for reimbursing SRC for the cost of all
security tags and other devices used in the LE Shop. If LE makes SRC aware of a potential high Shrink issue at a particular LE Shops, then SRC agrees to cooperate, at LE’s cost, with LE’s investigation on a commercially reasonable basis to
research the cause. 
  

	7.	OPERATIONAL OBLIGATIONS OF LE. 

 7.1 Staffing Levels of LE Shops. The
parties have established minimum staffing levels for the LE Shops as of the Effective Date as set forth in Appendix #2. Staffing may be increased above the minimum levels at the request and expense of LE. 

7.2 LE Shop Appearance. LE will maintain the appearance of each LE Shop consistent with SRC visual merchandising policies and
historical standards. 
 7.3 Merchandise Inventory. LE shall maintain an adequate stock of Merchandise in the LE Shops
consistent with past practices and such Merchandise shall be substantially the same in terms of category, variety, assortments, sizes, and price points, as has traditionally been sold in the LE Shops prior to the Effective Date. 

Any failure by LE to adequately stock and deliver Merchandise shall be deemed a material breach of this Agreement. SRC reserves the right to
sell other products in the LE Shop space if LE fails to adequately stock Merchandise (LE will not be entitled to any reduction of its obligations or remuneration with respect thereto). LE shall be responsible for Merchandise damages/returns and
shipping expenses to and from the LE Shops. In addition, LE shall create 

  
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and maintain Merchandise style records on the SRC systems. These style records will include price, SKU and bar code information so as to enable SRC to accomplish matching, preparation and data
exchange to LE of receipts, transfers and sales history. Subject to Section 8.7, the Parties will continue to use the same data interchange and other information technology systems that were used prior to the Effective Date. The cost of any
additions or modifications to data interchange and other information technology systems that are necessary as a result of the spin-off will be LE’s sole responsibility and charged to LE. 

7.4 Pricing. SRC shall have no right or power to establish or control the prices at which LE offers Merchandise in the LE Shop
Program; LE exclusively retains such right and power. Upon agreement of the parties, LE may participate in SRC national store-wide sales and/or Merchandise price-off events, at LE’s Expense. The Parties will work together to establish a process
and timing for SRC to provide LE with SRC’s promotional calendar for such events and related information as far in advance as reasonably practicable. Such information provided by SRC to LE is specifically included in the scope of SRC’s
Confidential Business Information. 
 7.5 Customer Returns/Service. LE understands that SRC shall at all times maintain a
general policy of “Satisfaction Guaranteed” to customers and SRC is entitled to adjust all complaints of and controversies with customers arising out of the operation of the LE Shop Program (and all customer accommodations made by SRC will
be LE’s responsibility and LE will promptly reimburse SRC for such accommodations). 
 7.6 Compliance with Laws. Each
Party shall, at its expense, obtain all permits and licenses that may be required under any applicable federal, state, or local law, ordinance, rule or regulation by virtue of any act performed by it in connection with the operation of the LE Shop
Program. Each Party shall comply fully with all Applicable Laws, including Applicable Laws regarding its employees, with respect to minimum compensation, overtime and equal opportunities for employment. LE is responsible for all compliance
obligations arising from the LE Shop Program and for all permits and licenses required for the operation of the LE Shop locations. In addition, LE represents and warrants that LE and all of its suppliers, subcontractors and agents involved in the
production or delivery of the Merchandise to be sold in connection with the LE Shop Program shall strictly adhere to all applicable laws, regulations, and prohibitions of the United States and all country(ies) in which such Merchandise is produced
or delivered with respect to the operation of their production facilities and their other businesses and labor practices, including laws, regulations and prohibitions governing the working conditions, wages and minimum age of the work force. LE
further represents and warrants that Merchandise shall not be produced or manufactured, in whole or in part, by child labor or convict or forced labor. 

7.7 Liens. LE shall not allow any liens, claims or encumbrances to attach to any SRC property or against any of the LE Shops
(including Fees, Expenses and other liabilities or obligations to SRC which accrue hereunder (collectively, “SRC Obligations”). If any lien, claim or encumbrance so attaches or is threatened, LE shall immediately take all necessary
action to cause such lien, claim or encumbrance to be satisfied and released. In the event LE fails to immediately cause such lien, claim or encumbrance to be satisfied or released, SRC may, in its sole discretion, terminate this Agreement and/or
charge LE or withhold from the sales receipts retained under Section 4.3 all expenses, including attorneys’ fees, incurred by SRC in removing 

  
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and/or resolving such liens or claims. The prohibition against liens contained in this Section shall not restrict LE’s ability to obtain financing secured by a lien on: (i) any
Merchandise prior to sale to a consumer, or (ii) any Merchandise that is returned or exchanged other than MOS Merchandise, or (iii) any net accounts, proceeds, receivables or other consideration due from SRC from the sale of Merchandise
(but expressly excluding the SRC Obligations) (as opposed to a consumer) (collectively, the “Proceeds”). This Section 7.8 does not apply to financing that SRC has consented to in writing as of the Effective Date. 

SRC hereby acknowledges and agrees that prior to the time of the sale of any Merchandise in any LE Shop(s), LE retains all title and interest
in such Merchandise. In furtherance of the foregoing and strictly for notice purposes only, SRC authorizes LE to file UCC-1 financing statements with respect to the Merchandise if required by LE’s lender; provided, however, that such UCC-1
financing statements shall clearly indicate that (a) this filing is for notice purposes only, (b) is intended only to evidence LE’s continued ownership of the Merchandise prior to sale to a consumer, and (c) such filing is not
intended to evidence any debtor/creditor relationship between LE and SRC. In addition, SRC shall have the right to review all such UCC-1 financing statements prior to any filing. 

 

	8.	OPERATIONAL OBLIGATIONS OF SRC. 

 8.1 Staffing of LE Shop Locations. SRC
shall provide adequate Personnel to staff the LE Shop locations (the “Designated LE Staff”) in accordance with the minimum staffing level requirements set forth in Appendix 2 or such higher level as may be agreed to in accordance
with the terms of this Agreement, subject to local labor availability and taking into consideration the desires and characteristics communicated to SRC by LE as to the quantity, quality and skills of such Designated LE Staff. LE may, from time to
time, request, for any lawful reason, that an individual be removed from the Designated LE Staff. SRC will take such requests in to account, in Good Faith, in staffing the Designated LE Staff. The Designated LE Staff shall be responsible for all
sales floor responsibilities (consistent with the parties past practices), including displaying Merchandise and signage (provided by LE), tagging merchandise, interacting with customers, selling Merchandise and accepting returns and exchanges of
Merchandise. As an accommodation to both parties, sales of LE Merchandise and products sold by SRC will be, consistent with the Parties’ past practices, processed at all point of sale (“POS”) locations within each Sears
Location (including those in embedded LE Shop) that processed sales of products with LE Marks prior to the Effective Date; provided SRC may in the future limit sales of Merchandise to those POS locations which process apparel products sold by
SRC. 
 8.2 Merchandise Returns, Exchanges and MOS. 

(a) Returns and Exchanges. SRC shall accept returns and exchanges (collectively “Returns”) from
customers in the LE Shops and at other SRC POS locations (regardless of whether such location has an LE Shop), of: (i) LE Merchandise and (ii) products sold by LE through other channels (e.g., catalog, Landsend.com, LE inlet stores,
collectively “Non-LE Shop Products”) consistent with past practices for the types of goods SRC has accepted in the past and in accordance with SRC’s standard policies. LE shall reimburse SRC for all amounts paid by SRC to
customers in 

  
 11 

 
connection with such Returns. For all Non-LE Shop Products which are not recognized by SRC “POS Terminals” (as defined below), SRC will return such products to LE, at LE’s expense
and LE will be responsible for handling the return or exchange with the customer, unless SRC has done so at the POS (as a customer accommodation). Returns of all LE Merchandise presented at a Sears POS Terminal will be handled by SRC, at LE’s
expense. All Returns of Merchandise originally sold through an LE Shop which SRC’s Personnel deem to be saleable (and which are part of the current assortment) will be returned to the sales floor, and all other Returns of Merchandise originally
sold through an LE Shop will be marked out of stock (“MOS”) and will become SRC’s property without any payment due LE; for clarity the parties acknowledge that the consideration for this transfer is included in the other
pricing in this Agreement. 
 (b) MOS. LE may from time to time MOS certain of its Merchandise by making the
appropriate MOS entries in SRC’s system. The LE Designated LE Staff will remove such Merchandise from the sale floor and box it up for shipment to the CRCs. SRC will liquidate such Merchandise through its providers and pay over to LE the net
proceeds of the sales of such Merchandise consistent with practices in place as of the Effective Date. LE will be responsible for all Fees and expenses associated with SRC removing such MOS from the sales floor and preparing such MOS Merchandise for
transport. 
 8.3 Fixtures. LE is the owner of the existing fixtures in the LE Shops. If LE requests additional or
replacements fixtures, such fixtures will be separately priced, and if agreed to by the parties in writing, SRC will acquire and install such fixtures on LE’s behalf and at LE’s expense. All new and replacement fixtures must be consistent
with SRC visual merchandising policies and be must be approved by SRC. If SRC has fixtures in store inventory that are not currently being utilized, SRC may permit (but shall not be obligated to permit) use of such fixtures by LE subject to
reasonable terms and conditions. 
 8.4 POS. At its expense, SRC shall furnish point of sale terminals (each “POS
Terminal”) for its locations, some of which, consistent with the parties past practices, will be located in certain LE Shops. Each POS Terminal will be of a size and design satisfactory to SRC, in its sole discretion, and at all times
remains SRC property. SRC shall maintain the software necessary to operate the POS Terminal and any changes to such software shall be provided at the expense of SRC; however if LE requests any changes to the POS Terminals (including the software
used in connection therewith); then such requested change shall be treated as a Service Change (and addressed pursuant to Section 1.1(f) (above); provided further that all changes to the POS Terminals required for the LE Shop
Program shall be done at LE’s sole cost and expense (including changes that are necessary to effectuate this Spin-Off or any change in Applicable Law that affects the LE Merchandise and the LE Program). 

8.5 LE Kiosks. Prior to the Effective Date, LE has provided certain kiosks for certain of the LE Shops (the “LE
Kiosks”). SRC shall maintain such LE Kiosks (at LE’s sole expense) as provided for in Appendix #2. LE shall be responsible for any new or replacement Kiosks which it wishes to provide (each of which will be addressed treated as
a Service Change (and addressed pursuant to Section 1.1(f). 
 8.6 SRC Right to Change LE Shop and Sears Location
Operations. The parties acknowledge and agree that the LE Shops are intended to be operated consistent with the 

  
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standards and practices of the Sears Locations and SRC reserves the right, in its sole discretion, to change its standards and practices for the Sears Locations, which may affect the services to
be provided to LE under this Agreement. LE shall have no right to contest such change in standards and practices for the LE Shops and Sears Locations. 

8.7 Quantity and Nature of Service. Except as otherwise provided in this Agreement, there will be no change in the scope or
level of, or use by, LE of Services during the Service Period (including changes requiring the hiring or training of additional employees by SRC) without the mutual written agreement of the Parties and adjustments, if any, to the charges for such
Services; provided, however, SRC may make changes from time to time in the manner of performing Services (including changes to its, its Affiliates’, and its Personnel’s systems without LE’s consent), notwithstanding that
specific third party contractors (at times referred to as “Vendors”) may be listed on Appendix #2). LE will not resell any Services, provide the Services to any joint-venture or non-wholly owned subsidiary, or otherwise
use the Services in any way other than in connection with the operation of the LE Shops. 
 8.8 Standard of Care. Except as
otherwise set forth in this Agreement, SRC does not assume any responsibility under this Agreement other than to render the Services in Good Faith without willful misconduct or gross negligence. SRC MAKES NO OTHER GUARANTEE, REPRESENTATION, OR
WARRANTY OF ANY KIND (WHETHER EXPRESS OR IMPLIED) REGARDING ANY OF THE SERVICES PROVIDED HEREUNDER, AND EXPRESSLY DISCLAIMS ALL OTHER GUARANTEES, REPRESENTATIONS, AND WARRANTIES OF ANY NATURE WHATSOEVER, WHETHER STATUTORY, ORAL, WRITTEN, EXPRESS OR
IMPLIED, INCLUDING ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE AND ANY WARRANTIES ARISING FROM COURSE OF DEALING OR USAGE OF TRADE. SRC WILL ONLY BE OBLIGATED TO PROVIDE SERVICES IN A MANNER CONSISTENT WITH PAST
PRACTICE (INCLUDING PRIORITIZATION of SRC PERSONNEL (INCLUDING LE DESIGNATED ASSOCIATES) AMONG PROJECTS FOR SRC, SRC’S AFFILIATES, AND LE); PROVIDED THAT SRC ASSOCAITES WHO ARE FILLING THE “DEDICATED CONSULTATIVE SELLING ASSOCIATES -
LANDS’ END” AND THE “ASSISTANT STORE MANAGER - LANDS’ END” ROLES WILL BE PRIMARILY DESIGNATED TO PERFORM THE SERVICES; PROVIDED, HOWEVER THAT SRC MAY USE ANY EXCESS CAPACITY OF SUCH DESIGNATE PERSONNEL FOR NON-SRC
WORK. 
 8.9 Responsibility for Errors; Delays. SRC’s sole responsibility to LE for errors or omissions in Services
caused by SRC will be to furnish correct information or adjustment in the Services, and if such errors or omissions are solely or primarily caused by SRC, SRC will promptly furnish such corrections at no additional cost or expense to LE if LE
promptly advises SRC of such error or omission.
 8.10 Good Faith Cooperation; Alternatives. SRC and LE will use Good Faith
efforts to cooperate with each other in all matters relating to the provision and receipt of the Services including acquisition of required third party contractor consents (if any). If SRC reasonably believes it is unable to provide any Service
because of a failure to obtain third-party contractor consents or because of impracticability, SRC will notify LE promptly after SRC becomes aware of such fact and the Parties will cooperate to determine the best alternative approach. 

  
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 8.11 Use of Third Parties. SRC may use any Affiliate or any third-party contractor
(including former Affiliates) to provide the Services; provided, however, that SRC shall at all times remain responsible for such third parties’ performance under this Agreement. 

8.12 Assets of LE. During the Service Period, (i) SRC and its Affiliates and third-party contractors may use, at no charge,
all of the software and other assets, tangible and intangible, of LE (together, the “Assets”) to the extent necessary to perform the Services (but for no other purpose), and (ii) LE will consult with SRC prior to upgrading or
replacing any of the Assets that are necessary for SRC to provide the Services. 
 8.13 Ownership of Data and Other Assets.
Neither Party will acquire any right, title or interest in any Asset that is owned or licensed by the other and used to provide the Services. All data provided by or on behalf of a Party to the other Party for the purpose of providing the
Services will remain the property of the providing Party. To the extent the provision of any Service involves intellectual property, including software or patented or copyrighted material, or material constituting trade secrets, neither Party
will copy, modify, reverse engineer, decompile or in any way alter any of such material, or otherwise use such material in a manner inconsistent with the terms and provisions of this Agreement, without the express written consent of the other
Party. All specifications, tapes, software, programs, services, manuals, materials, and documentation developed or provided by SRC and utilized in performing this Agreement, will be and remain the property of SRC and may not be sold,
transferred, disseminated, or conveyed by LE to any other entity or used other than in performance of this Agreement without the express written permission of SRC.

8.14 Contact Person. Each Party will appoint a contact person (each, a “Contact Person”) to facilitate
communications and performance under this Agreement. The initial Contact Person of each Party is set forth on Appendix #9. Each Party will have the right at any time and from time to time to replace its Contact Person by written notice to the
other Party. 
  

	9.	CONFIDENTIALITY; CONFIDENTIAL PERSONAL INFORMATION. 

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

  
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 9.2 Confidential Personal Information. 

(a) All individually-identifiable information regarding SRC’s employees and/or customers provided by SRC to LE or
otherwise collected from a consumer in an LE Shop or in connection with the LE Shop Program, including but not limited to, names, addresses, telephone numbers, account numbers, customer lists, and demographic, financial and transaction information
(“Confidential Personal Information”), even if the same or similar individually-identifiable information is shared by SRC with LE or collected by or on behalf of LE by SRC, is deemed confidential and owned exclusively by SRC or its
Affiliates and any bank who issues a Sears-branded charge card to such customer. This Section 9.2 shall not apply to information developed by LE, without the use of Confidential Customer Information, provided that LE is not using such
information on SRC’s behalf. If the express purpose of collecting specific Confidential Personal Information is to share said information with LE, such as through an “opt-in” to an LE promotional email list, and such purpose is
properly disclosed to the customer at the time such information is collected (“Shared Confidential Personal Information”), then the parties shall jointly own that Shared Confidential Personal Information (unless otherwise prohibited
by Applicable Law; in which case SRC shall be become the sole owner of such Shared Confidential Personal Information and LE will cease its use). 

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

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

  
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 (c) Destruction. Without limiting the foregoing, when any Confidential
Information is no longer needed for the purposes contemplated by this Agreement the Receiving Party will, promptly after request of the Disclosing Party, either return such Confidential Information in tangible form (including all copies thereof and
all notes, extracts or summaries based thereon) or certify to the other Party that it has destroyed such Confidential Information (other than electronic copies residing in automatic backup systems or one copy retained to the extent required by
Applicable Law, regulation or a bona fide document retention policy). 
 9.4 Treatment of Confidential Personal Information.

 (a) LE shall use Confidential Personal Information only as necessary for conducting the LE Shops Program. LE shall not
duplicate or incorporate the Confidential Personal Information into its own records or databases. LE shall restrict disclosure of Confidential Personal Information to its employees who have a need to know such information to perform under this
Agreement. LE is liable for any unauthorized disclosure or use of Confidential Personal Information by any of its Personnel. 

(b) LE shall not disclose the Confidential Personal Information to any third party, including any affiliate or subsidiary of
LE, permitted subcontractor, or other agent without the prior written consent of SRC and the written agreement of such third party to be bound by the terms of this Section 9. Unless otherwise prohibited by law, LE shall: (x) immediately
notify SRC of any legal process served on LE for the purpose of obtaining Confidential Personal Information; and (y) permit LE adequate time to exercise its legal options to prohibit or limit such disclosure. 

(c) LE shall establish and maintain written policies and procedures designed to ensure the confidentiality of the Confidential
Personal Information. Copies of such policies and procedures shall be provided to SRC upon SRC’s request. 
 (d) LE
shall notify SRC promptly upon the discovery of the loss, unauthorized disclosure or unauthorized use of the Confidential Personal Information and shall indemnify SRC and hold SRC harmless for such loss, unauthorized disclosure or unauthorized use,
including attorneys’ fees. 
 (e) LE shall permit SRC to audit LE’s compliance with the provisions of this Section
at any time during LE’s regular business hours. 
 9.5 Exceptions to Confidential Treatment. The obligations under this
Section 9 do not apply to any Confidential Information that the Receiving Party can demonstrate (A) was previously known to the Receiving Party without any obligation owed to the Disclosing Party or its Affiliates to hold it in confidence,
(B) is disclosed to third parties by the Disclosing Party or its Affiliates without an obligation of confidentiality to the Disclosing Party or its Affiliate, as applicable, (C) is or becomes available to any member of the public other
than by unauthorized disclosure by the Receiving Party, its Affiliates or its or their Personnel, (D) was or is independently developed by the Receiving Party or its Affiliates or Personnel without use of the Confidential Information,
(E) legal counsel’s advice is that the Confidential Information is 

  
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required to be disclosed by Applicable Law or the rules and regulations of any applicable Governmental Authority and the Receiving Party has complied with Section 9.6 (Protective
Arrangement) below, or (F) legal counsel’s advice is that the Confidential Information is required to be disclosed in response to a valid subpoena or order of a court or other governmental body of competent jurisdiction or other valid
legal process and the Receiving Party has complied with Section 8.5 (Protective Arrangement) below. 
 9.6 Protective
Arrangement. If the Receiving Party determines that the exceptions under Section 9.5(E) or Section 9.5(F) apply, the Receiving Party shall give the Disclosing Party, to the extent legally permitted and reasonably
practicable, prompt prior notice of such disclosure and an opportunity to contest such disclosure and shall use commercially reasonable efforts to cooperate, at the expense of the Receiving Party, in seeking any reasonable protective arrangements
requested by the Disclosing Party. In the event that such appropriate protective order or other remedy is not obtained, the Receiving Party may furnish, or cause to be furnished, only that portion of such Confidential Information that the Receiving
Party is advised by legal counsel is legally required to be disclosed and shall take commercially reasonable steps to ensure that confidential treatment is accorded such Confidential Information. 

9.7 Ownership of Information. Except as otherwise provided in this Agreement, all Confidential Information provided by or on
behalf of a Party (or its Affiliates) that is provided to the other Party or its Personnel shall remain the property of the disclosing entity and nothing herein shall be construed as granting or conferring rights of license or otherwise in any such
Confidential Information. 
  

	10.	REPRESENTATIONS AND WARRANTIES.  

 Without limiting or disclaiming any implied
representations or warranties, LE represents, warrants and covenants, as of the Effective Date and continuing in effect throughout the term of this Agreement, that: 

10.1 Merchandise. (a) all Merchandise: (i) conforms to its specifications, (ii) is fit and sufficient for the
ordinary purpose for which Merchandise is used, (iii) is free from defects in workmanship, materials and packaging, (iv) is free from defects in construction and design, and (v) is fit and sufficient for the purpose stated on any
packaging, labeling or advertising,; (b) upon transfer of the Merchandise to the Customer or SRC, as applicable, the title for such Merchandise is free and clear of any encumbrance, and (c) all test data and other claim substantiation
provided by LE is accurate and properly described by LE. 
 10.2 Advertising. All claims made by LE in any packaging,
labeling, advertising, or other consumer material, including LE Provided Content, in connection with any Merchandise or LE Mark relating to Merchandise: (a) comply with Applicable Law, (b) are true and have been substantiated before such
claims are made, and (c) contain all applicable warnings and instructions in the assembly, installation, use, repair, servicing and maintenance of the Merchandise. 

10.3 Intellectual Property. (a) all Intellectual Property rights (other than Intellectual Property rights owned by SRC or
licensed by SRC from third parties) and LE Provided Content used by LE in connection with Merchandise or in the production of Merchandise, are either: (i) 

  
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owned by LE or (ii) are licensed by LE and LE has the right to license them to SRC in connection with such Merchandise and the sale of such Merchandise, for use or further resale and
(b) Merchandise, including LE Provided Content, does not, at any time, infringe any Intellectual Property right of any person, corporation or other entity. 

10.4 Authority and Compliance with Law. (a) LE has the right, power and authority to: (i) enter into each Agreement,
(ii) perform its obligations under this Agreement; and (iii) grant to SRC the rights provided under this Agreement; (b) LE’s execution, delivery and performance of this Agreement has been duly authorized, are in compliance with
this Agreement, are legally binding and enforceable in accordance with its terms, and do not violate any other agreement, restriction, or Applicable Laws; (c) all Merchandise strictly complies with, and all Merchandise Production occurs
strictly in compliance with, all Applicable Laws; (d) LE and its Personnel who are involved in Merchandise Production or the installation, repair, display, possession, servicing, use, maintenance, delivery or sale of Merchandise shall each,
during this Agreement, strictly comply with all Applicable Laws, including the Foreign Corrupt Practices Act of 1977, 15 U.S.C. §§ 78dd-1 et. seq., as amended, which LE acknowledges applies to the business relationship with SRC hereunder,
and such other national or regional anti-corruption or anti-bribery laws that may apply to either LE or LE’s business relationship with SRC, and those governing the working conditions, wages, hours and minimum age of the work force;
(e) Merchandise Production does not involve at any time, in whole or in part, any use of child, convict or forced labor; and (f) all prices charged and allowances made available to SRC by LE are in compliance with U.S. antitrust laws,
including the requirements of the Robinson-Patman Act. LE shall provide SRC with a guaranty of compliance with the foregoing in such form as SRC may designate with respect to any Merchandise. 

10.5 Antidumping. (a) all sales of Merchandise are made at no less than fair value under the United States antidumping law
and (b) no government has provided a countervailable subsidy for Merchandise actionable under U.S. law. LE shall indemnify SRC for (x) all antidumping and countervailing duties imposed on all Merchandise that is: (i) sold prior to the
date of publication of the International Trade Administration’s preliminary determination of sales at less than fair value or prior to the date of publication of the existence of countervailable subsidies and (ii) exported or imported
before the date of publication of the International Trade Administration’s final determination of sales at less than fair value or the existence of countervailable subsidies and (y) any expenses (including reasonable attorneys’ fees)
and administrative costs incurred by SRC and its Affiliates in their participation in any United States antidumping or countervailable duty proceeding involving any warranted Merchandise. 

 

	11.	DEFENSE AND INDEMNITY; LIMITATION OF LIABILITY. 

 11.1 Indemnification by
LE. LE shall at its sole cost defend, indemnify, and hold harmless: (a) SRC, (b) all of SRC’s past, present and future affiliates, (c) all past, present, and future Representatives of each of the foregoing entities, and
(d) all other persons directly or indirectly involved in the distribution or sale of Merchandise (each an “SRC Indemnified Party”); against any and all costs, liabilities, losses, penalties, expenses and damages (including
reasonable attorneys’ fees, disbursements and costs of investigation and cooperation) of every kind and nature incurred by any of the SRC Indemnified Parties arising from all allegations 

  
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(including false, fraudulent or groundless allegations) in any claim, action, lawsuit or proceeding between any SRC Indemnified Party and any third party, whether or not SRC’ obligations
under Section 11.2 (Indemnification by SRC) apply, arising out of or relating to any of the following (collectively, the “LE Defended Claims”): (i) the infringement, misuse, dilution, misappropriation or other
violation of any Intellectual Property rights in any way relating to or affecting Merchandise (including all LE Provided Content) (ii) or any unfair competition involving Merchandise (including LE-Provided Content); (iii) arising from the
LE Shops, the LE Shop Program, and this Agreement (iv) the loss, unauthorized disclosure or unauthorized use of the Confidential Personal Information by LE, or through LE Personnel (e.g., compromised login-ids, etc.); (v) death of or
injury to any person, damage to any property, or any other damage or loss, by whomsoever suffered, resulting or claimed to result in whole or in part from any latent or patent defect in Merchandise, including improper design, manufacture,
construction, assembly, installation, repair, display, packaging, service or design of Merchandise, failure of Merchandise to comply with any specification or samples or with any express or implied warranties of LE, or any claim of strict liability
in tort relating to Merchandise; (vi) each breach by LE or its Personnel of this Agreement (including LE’s representations, warranties and covenants); (vii) the packaging, tagging, labeling, packing, shipping, delivery and invoicing
of Merchandise; (viii) the packaging, labeling or advertising claims made by LE; (ix) the display, assembly or installation of Merchandise; or (x) the assertion by a third party of a security interest, right of replevin or other legal
interest created by a factoring or other credit arrangement in any amount due LE under this Agreement not expressly consented to by SRC in writing (or any amendment hereto) existing now or later signed by SRC and LE relating to Merchandise. Despite
the foregoing sentence, LE is not obligated to defend, indemnify and hold harmless any SRC Indemnified Party for any LE Defended Claim based only on: (x) a breach of this Agreement by SRC; (y) any negligent act or omission, or willful
misconduct of SRC, its Affiliates, or their respective Representatives in performance of this Agreement. and (z) infringement of third party Intellectual Property rights caused by LE’s use of SRC Intellectual Property in the manner
approved by SRC in writing. LE shall retain defense counsel satisfactory to SRC and shall diligently and professionally defend each SRC Indemnified Party from each LE Defended Claim and LE shall timely provide periodic reports to SRC and consult
with SRC’s Personnel in conducting the defense of the LE Defended Claims and otherwise cooperate fully with the SRC’s reasonable requests; provided that only with respect to LE Defended Claims arising under
Section 11.1(i) involving Intellectual Property rights owned or licensed by SRC (except those licensed from LE) and any claims of unfair competition involving Merchandise, SRC may, at its election and at any time, take control of the
defense and investigation of said LE Defended Claims and employ attorneys and other consultants, investigators and experts of its own choice to manage and defend any such LE Defended Claims at LE’s cost and expense. If any of LE’s
obligations under this Section 11.1 are not enforceable under Applicable Law and an SRC Indemnified Party and LE are found to be liable to a third party in connection with the Merchandise or this Agreement, then SRC and LE shall each
contribute to the payment of any judgment awarded in favor of such third party in proportion to their comparative degrees of culpability. 

11.2 Indemnification by SRC. SRC will at its sole cost defend, indemnify, and hold harmless LE and its Affiliates, and their
respective Representatives (“LE Indemnified Parties”); against any and all costs, liabilities, losses, penalties, expenses and damages (including 

  
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reasonable attorneys’ fees, disbursements and costs of investigation and cooperation) of every kind and nature incurred by any of the LE Indemnified Parties arising from all allegations
(including false, fraudulent or groundless allegations) in any claim, action, lawsuit or proceeding between any SRC Indemnified Party and any third party, arising out of or relating to any of the following (collectively, the “SRC Defended
Claims”) (i) bodily injury or death of any person or damage to real and/or tangible personal property directly caused by the negligence or willful misconduct of SRC or its Affiliates during the performance of the Services, or
(ii) the intentional infringement of any copyright or trade secret by an Asset owned by SRC or its Affiliates and used by SRC in the performance of the Services (together, “SRC Defended Claims”). Notwithstanding the obligations
set forth above in this Section 11.2, SRC will not defend, indemnify or hold harmless LE, its Affiliates, or their respective Representatives to the extent that such SRC Claims are found by a final judgment or opinion of an arbitrator or
a court of appropriate jurisdiction to be caused by: (a) a breach of any provision of this Agreement by LE; (b) any negligent act or omission, or willful misconduct of LE, its Affiliates, or their respective Representatives in performance
of this Agreement; or (c) with respect to infringement claims: (I) LE’s use of the Asset in combination with any product or information not provided by SRC; (II) LE’s distribution, marketing or use for the benefit of third
parties of the Asset; (III) LE’s use of the Asset other than as contemplated by this Agreement; or (IV) information, direction, specification or materials provided by or on behalf of LE. LE Claims and SRC Claims are each individually
referred to as a “Claim.” 
 11.3 Notice. LE shall notify SRC’s General Counsel in writing by certified
mail, return receipt requested, within five (5) business days after LE has: (a) knowledge of any claim or allegation of infringement, misuse, dilution, misappropriation or other violation of any Intellectual Property right in any way
related to or affecting Merchandise, including LE-Provided Content, (b) knowledge of any safety issue with any Merchandise, (c) knowledge of any allegation by a government agency (including the U.S. Consumer Product Safety Commission, the
U.S. Department of Agriculture and the U.S. Food and Drug Administration and such equivalent foreign government agencies, departments and commissions) that the government agency (i) has initiated a formal or informal inquiry, investigation or
proceeding in any way related to or affecting Merchandise; or (ii) asserts that Merchandise is not or may not be in compliance with laws; or (d) reported to any government agency that Merchandise is not or may not be in compliance with
Applicable Law or contains or may contain a defect that could create a risk of injury or death. 
 11.4 Joint Claims. If a
third-party claim, demand, litigation, or suit involves allegations for which both Parties may invoke the obligation of the other Party to defend them under this Agreement (“Mixed Claims”); then LE shall defend both Parties and
their Representatives from such Mixed Claims, at LE’s sole reasonable expense, provided that SRC may elect to take on the defense of such Mixed Claims. 

11.5 Procedure. In the event of a Claim, the Indemnified Party will give the indemnifying Party prompt notice in writing of the
Claim; but the failure to provide such notice will not release the indemnifying Party from any of its obligations under this Agreement except to the extent the indemnifying Party is materially prejudiced by such failure. Except as otherwise
expressly provided for above, upon receipt of such notice the indemnifying Party will assume and will be entitled to control the defense of the Claim at its expense and through 

  
 20 

 
counsel of its choice, and will give notice of its intention to do so to the Indemnified Party within 20 business days of the receipt of such notice from the Indemnified Party. The indemnifying
Party will not, without the prior written consent of the Indemnified Party, (i) settle or compromise any Claim or consent to the entry of any judgment that does not include as an unconditional term thereof the delivery by the claimant or
plaintiff to the Indemnified Party of a written release from all liability in respect of the Claim or (ii) settle or compromise any Claim in any manner that may adversely affect the Indemnified Party other than as a result of money damages or
other monetary payments that are indemnified hereunder. Each Party must obtain the other Party’s prior written consent for any other settlements that would affect the other Party, including one that would place new or different obligations or
restrictions on the Indemnified Parties of the other Party or restrictions upon the sale (or disposition) of the Merchandise. The Indemnified Party will have the right at its own cost and expense to employ separate counsel and participate in the
defense of any Claim. 
 11.6 Limitation of Liability. EXCEPT FOR (I) EACH PARTY’S INDEMNITY AND DEFENSE OBLIGATIONS
AS SET FORTH IN SECTION 11.1, AND SECTION 11.2, AND OTHER LIABILITIES TO UNAFFILIATED THIRD PARTIES, (II) A PARTY’S BREACH OF ITS CONFIDENTIALITY OBLIGATIONS, AND (III) BREACH OF SECTION 8.13 (OWNERSHIP OF
DATA AND OTHER ASSETS), IN NO EVENT WILL EITHER PARTY, NOR ITS AFFILIATES, CONTRACTORS OR AGENTS BE LIABLE FOR ANY CONSEQUENTIAL, INCIDENTAL, INDIRECT, SPECIAL, OR PUNITIVE DAMAGES, LOSSES OR EXPENSES (INCLUDING BUSINESS INTERRUPTION, LOST BUSINESS,
LOST PROFITS, LOST DATA, OR LOST SAVINGS, DAMAGES TO SOFTWARE OR FIRMWARE, OR COST OF PROCURING OR TRANSITIONING TO SUBSTITUTE SERVICES), REGARDLESS OF THE LEGAL THEORY UNDER WHICH SUCH LIABILITY IS ASSERTED, AND REGARDLESS OF WHETHER A PARTY HAD
BEEN ADVISED OF THE POSSIBILITY OF SUCH LIABILITY. THE SOLE LIABILITY OF SRC AND ITS AFFILIATES FOR ANY ERRORS AND OMISSIONS IN THE SERVICES ARE LIMITED AS PROVIDED FOR IN SECTION 8.8 AND SECTION 8.9 ABOVE AND FOR ALL OTHER ALL
CLAIMS IN ANY MANNER RELATED TO THIS AGREEMENT ARE LIMITED BE THE PAYMENT OF DIRECT DAMAGES, NOT TO EXCEED (FOR ALL CLAIMS IN THE AGGREGATE) THE FEES RECEIVED BY SRC UNDER THIS AGREEMENT DURING THE PRIOR SIX (6) MONTHS PRIOR TO THE DATE SUCH
CLAIM AROSE.
 11.7 Independent Obligation. The obligations of each Party to defend, indemnify and hold harmless, the other
Parties’ Indemnified Parties under this Section are independent of each other and any other obligation of the Parties under this Agreement. 
  

	12.	INSURANCE. 

 (a) LE shall maintain during the Service Period: (i) commercial general
liability insurance, with a contractual liability to the extent provided for under such insurance covering LE’s indemnity obligations under the Leases, and with limits of not less than $2,000,000 combined single limit for personal injury,
bodily injury or death, or property damage or destruction (including loss of use thereof) per occurrence, (ii) workers’ compensation insurance as required by statute, and employer’s liability insurance in the

  
 21 

 
amount of at least $500,000 per occurrence, and (iii) “all-risk” property damage insurance (“Hazard Insurance”) including Builder’s Risk protecting against
all risk of physical loss or damage, including sprinkler leakage coverage in amounts not less than the actual replacement cost, covering LE’s inventory, personal property, furniture, wall coverings, floor coverings, trade fixtures and equipment
within the LE Shops and within 100 feet of the LE Shops for damage or other loss caused by fire or other casualty or cause including vandalism and malicious mischief, theft, explosion, and water damage of any type, including sprinkler leakage,
bursting and stoppage of pipes. All insurance required hereunder shall be provided by insurers of recognized financial responsibility with a Best’s (or its equivalent) rating of at least A- and VIII and shall be licensed in the State in which
each LE Shop is located. Hazard Insurance shall include replacement cost coverage to the extent of at least one hundred percent (100%) thereof and the amount shall satisfy any coinsurance requirements under the applicable policy. LE’s
insurance shall be primary, and any insurance maintained by SRC or any other additional insureds hereunder shall be excess and non-contributory. Liability insurance shall name “Sears Holdings Management Corporation and its subsidiaries and
affiliates” as additional insureds per endorsement CG 20 10 07 04 or equivalent. Insurance must also provide a broad form Vendor’s endorsement naming “Sears Holdings Management Corporation and its subsidiaries and affiliates” as
additional insureds. Such endorsement must be provided on ISO Form CG 20 15 11 88 or its equivalent. Any insurance required to be carried by LE pursuant to this Section 12 may be carried under a policy or policies covering other liabilities
(including, without limitation, blanket coverage so long as the aggregate amount required hereunder is on a per-location basis) and locations of LE’s business. 

(b) LE shall maintain, or cause any contractor of LE (a “Contractor”) performing work at an LE Shop to maintain, during the
period that the Contractor is performing the work, insurance as follows: 
 (i) Commercial General Liability including
Premises Operations, Products and Completed Operations Liability, Independent Contractors Liability, Contractual Liability and Broad Form Property Damage Liability, with limits of no less than Two Million Dollars ($5,000,000) combined single limit.
Such liability insurance shall provide coverage for explosion, collapse and underground exposures if applicable, and contractual liability coverage, shall insure the Contractor and any subcontractors against any and all claims for personal injury,
including death resulting therefrom and damage to property of others, arising from operations under contracts, whether such operations are performed by the Contractor or by any subcontractor. Such insurance shall include the condition that it is
primary and that any liability insurance maintained by SRC or any other additional insured is excess and non-contributory. 

(ii) Workers’ Compensation at statutory limits, as required by the state where the work is being performed, and
Employer’s Liability with limits of no less than $500,000 each accident or occupational disease. 

  
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 (iii) Comprehensive Automobile Liability Insurance, which shall include bodily
injury and property damage liability, including the ownership, maintenance and operation of any automobile equipment owned, hired and non-owned including the loading and unloading thereof, with limits of at least $2,000,000 for each accident. 

(iv) Builders’ Risk as included in LE’s Hazard Insurance insuring all of LE’s inventory, personal property,
furniture, floor coverings, fixtures and equipment within the premises and within 100 feet of the LE Shop, against all risks of physical loss or damage. 

(v) A broad form Vendor’s endorsement naming “Sears Holdings Management Corporation and its subsidiaries and
affiliates” as additional insureds. Such endorsement shall be provided on ISO Form CG 20 15 11 88 or its equivalent. 
 LE shall obtain
and maintain a certificate of insurance from each Contractor and make the certificate available to SRC upon request. 
 (c) Such insurance
set forth in subsection (b) above shall be obtained from insurers of recognized financial responsibility who shall be licensed in the state in which each LE Shop is located. LE shall provide SRC with SRC in being additional insureds, shall be
named as additional insureds under the insurance policies described in this Section 11. The certificates of insurance, to the extent the same is standard in the industry, shall provide that the coverage shall not be changed or cancelled,
without at least ten (10) days’ notice to SRC, provided that if Contractor’s insurance company in its certificate to SRC will state only that (i) the coverage will not be “materially” changed (as opposed to simply
“changed”) without prior notice to SRC, and/or (ii) it will “endeavor to give” at least ten (10) days prior written notice to SRC (as opposed to simply agreeing to give such notice), and it is standard in the insurance
industry that an insurance company would provide only such wording, the Contractor’s insurer may provide such wording in the certificate of insurance to SRC. 

(d) Waiver of Subrogation Rights. Each party hereto has hereby remised, released, and discharged and does remise, release, and
discharge the other party hereto and any officer, agent, employee, or representative of such party of and from any claims, rights of recovery, or liability whatsoever (and each party hereby waives all rights of subrogation) hereafter arising from
loss, damage, or injury caused by fire or other casualty of the type that is required to be insured under the policies of insurance required to be maintained by the releasing party as of the date of any casualty, SUCH WAIVER TO BE EFFECTIVE
REGARDLESS OF THE CAUSE OR ORIGIN OF SUCH DAMAGE OR LOSS INCLUDING, WITHOUT LIMITATION, THE NEGLIGENCE OF A PARTY HERETO OR ANY OF ITS OFFICERS, AGENTS, EMPLOYEES OR REPRESENTATIVES. LE shall procure an appropriate clause in or endorsement to
any policy of insurance covering SRC’s personal property, inventory, fixtures, furnishing and equipment located in the LE Shop, wherein the insurer waives subrogation or consents to a waiver of its right of recovery. 

  
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	13.	TERMINATION. 

 13.1 Termination By LE. LE’s right to terminate this
Agreement are limited to the co-terminus termination of this Agreement upon expiration or termination of the Lease of a LE Shop under the applicable Lease as provided for in Section 2 (Term) above. 

13.2 Termination by SRC. Upon the occurrence of any of the following breaches (each an “LE Default”), SRC may
provide written notice to LE of such LE Default and if LE does not cure such LE Default within ten (10) days, SRC may terminate this Agreement: 

(a) There is an assignment with respect to which SRC has not consented in accordance with Section 14.4. 

(b) LE makes any unauthorized use, duplication or disclosure of Confidential Information in violation of Section 9; 

(c) LE fails to secure and maintain appropriate insurance coverage as set forth in Section 10; 

(d) A petition is filed either by or against LE in any bankruptcy or insolvency proceeding, or any property of a party passes into the hands of
any receiver, assignee or creditor; 
 (e) LE materially misuses or makes an unauthorized use of SRC’s Marks in violation of
Section 3; 
 (f) LE fails to make payment of any amounts due hereunder; or 

(g) LE materially fails to comply with any other provision of this Agreement. 

13.3 Termination on Store Closing. This Agreement shall terminate with respect to any affected store location due to the closing
of the Sears Location, including following any fire or other casualty. LE shall not be entitled to any notice of such store closing prior to a public announcement of such closing pursuant to this Agreement. This provision shall not affect any notice
requirements set forth in the Leases. LE waives any claim that it may have against SRC for damages, if any, incurred as a result of such closing. 

13.4 Cross Default. LE’s breach of any of the Cross Default Agreements constitutes a breach by LE of this Agreement (which
breach may only be cured, if at all, in accordance with the express provisions of the affected Cross Default Agreement). Furthermore, if LE wrongfully terminates a Cross Default Agreement or if LE’s breach of a Cross Default Agreement results
in the SHC Entity counterparty terminating that agreement; then SRC may also terminate this Agreement for cause. SRC’s remedies under this Section 13.4 are in addition to and not in lieu of any and all other legal and equitable remedies
available to SRC upon LE’s breach of this Agreement. 
 13.5 Effect of Termination. Upon expiration or termination of
this Agreement, each Party shall immediately pay all amounts owed to the other Party. 
 13.6 Wind-Down Activities. Prior to
expiration and upon notice of termination of this Agreement, or the lease for any LE Shop location, SRC shall, at LE’s expense, (collectively, the “Wind-down Activities”): (a) perform an orderly removal of fixtures, LE property,
and Merchandise from the LE Shop; (b) leave the LE Shop area in a “broom clean” condition; and (c) pack and ship LE Merchandise, property, and fixtures to LE; provided that if LE has not paid all amounts due under this Agreement
and the Ancillary Agreements, SRC may liquidate such LE property and apply the proceeds to amounts due SRC and its Affiliates under such agreements. LE must maintain an adequate stock of Merchandise through the expiration or termination of the
location. If LE fails to maintain an adequate stock of Merchandise through the expiration or 

  
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termination of a location, SRC shall be entitled to utilize unused space, including LE fixtures, at SRC’s sole discretion. For clarity, the parties note that this Agreement shall remain in
effect, notwithstanding any such termination or expiration, of the underlying Lease for the duration of the Wind-down Activities; provided that SRC shall not be obligated to provide any Services other than the Wind-down Activities during such time
with respect to such LE Shop. LE must provide SRC sufficient notice to allow SRC to complete the Wind-Down Activities during the term of the Lease applicable to each LE Shop; LE shall be solely responsible for all hold-over rent and other costs
incurred as a result of such Wind-Down Activities not being completed during the normal term of the applicable Lease. 
  

	14.	MISCELLANEOUS. 

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

  
 25 

 
is granted. Each Party will reasonably cooperate with the other Party in the investigation of any apparent unauthorized access by the other Party, its Affiliates, or its Personnel to any
Electronic Resources or unauthorized release of Confidential Information. Each Party will promptly notify the other Party of any actual or suspected unauthorized access or disclosure of any Electronic Resource of the other Party, its Affiliates, or
its Personnel. 
 14.3 Amendment; No Waiver. The terms, covenants and conditions of this Agreement may be amended, modified or
waived only by a written instrument signed by both Parties, or in the event of a waiver, by the Party waiving such compliance. Any Party’s failure at any time to require performance of any provision will not affect that Party’s right to
enforce that or any other provision at a later date. No waiver of any condition or breach of any provision, term or covenant contained in this Agreement, whether by conduct or otherwise, in any one or more instances will be deemed to be or construed
as a further or continuing waiver of that or any other condition or of the breach of that or another provision, term or covenant of this Agreement. 

  
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 14.4 Assignment. LE may not assign its rights or obligations under this Agreement
without the prior written consent of SRC, which consent may be withheld in SRC’s absolute discretion. A Stockholding Change will constitute an assignment of this Agreement by LE for which assignment SRC’s prior written consent will be
required. SRC may freely assign its rights and obligations under this Agreement to any of its Affiliates without the prior consent of LE; provided that any such assignment will not relieve SHMC of its obligations and liabilities hereunder. This
Agreement will be binding on, and will inure to the benefit of, the permitted successors and assigns of the Parties. 
 14.5
Notices. All notices, requests, demands, waivers and other communications required or permitted to be given under this Agreement must be in writing and will be deemed to have been duly given (i) when delivered by hand,
(ii) three (3) Business Days after it is mailed, certified or registered mail, return receipt requested, with postage prepaid, (iii) on the same Business Day when sent by facsimile or electronic mail (return receipt requested) if the
transmission is completed before 5:00 p.m. recipient’s time, or one (1) Business Day after the facsimile or email is sent, if the transmission is completed on or after 5:00 p.m. recipient’s time or (iv) one (1) Business Day
after it is sent by Express Mail, Federal Express or other courier service specifying same day or next day delivery, as follows (or at such other address for a Party as shall be specified in a notice given in accordance with this Section 14.5):

 If to SRC, to: 
 Sears,
Roebuck and Co. 
 3333 Beverly Road – Mailstop AC-363A-A 

Hoffman Estates, Illinois 60179 

Attn.: Jim Ferguson 
 Facsimile:
(847) 286-1024 
 Email: Jim.Ferguson@searshc.com 

With a Copy To: 
 Sears
Holdings Corporation 
 3333 Beverly Road - Mailstop B6-210B 

Hoffman Estates, Illinois 60179 

Attn.: General Counsel 

Facsimile: (847) 286-2471 

Email: Dane.Drobny@searshc.com 

  
 27 

 If to LE, to: 

Lands’ End, Inc. 
 5
Lands’ End Lane 
 Dodgeville, Wisconsin 53595 

Attn.: SVP Retail 
 Facsimile:
608-935-6550 
 Email: marla.ryan@landsend.com 

With a Copy To: 
 Lands’
End 
 5 Lands’ End Lane 

Dodgeville, Wisconsin 53595 

Attn.: General Counsel 

Facsimile: 608-935-6550 
 Email:
Karl.Dahlen@landsend.com 
 14.6 Publicity. All publicity regarding this Agreement is subject to Section 14.5 (Public
Announcements) of the Separation Agreement. 
 14.7 No Third Party Rights. Except for the indemnification rights under this
Agreement of any SHC or LE indemnitee in their respective capacities as such, this Agreement is intended to be solely for the benefit of the Parties and is not intended to confer any benefits upon, or create any rights in favor of, any person other
than the Parties. 
 14.8 Severability. If any provision of this Agreement is declared by any court of competent jurisdiction
to be illegal, invalid, void or unenforceable, such provision will (to the extent permitted under Applicable Law) be construed by modifying or limiting it so as to be legal, valid and enforceable to the maximum extent compatible with Applicable Law,
and all other provisions of this Agreement will not be affected and will remain in full force and effect. 
 14.9 Entire
Agreement. This Agreement (including the Exhibits, Appendixes and Schedules hereto) constitutes the entire agreement between the Parties hereto and supersedes all prior agreements and understandings, oral and written, between the Parties
hereto with respect to the subject matter hereof. 

  
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 14.10 Equitable Relief. Each Party acknowledges that any breach by a Party of
Section 3 (Use of Marks and Advertising), Section 8.3 (Ownership of Data and other Assets), Section 9 (Confidential Information) or Section 14.2 (Computer Access) of this Agreement may cause the
non-breaching Party and its Affiliates irreparable harm for which the non-breaching Party and its Affiliates have no adequate remedies at law. Accordingly, in the event of any actual or threatened default in, or breach of the foregoing provisions,
each Party and its Affiliates are entitled to seek equitable relief, including specific performance, and injunctive relief,; in addition to any and all other rights and remedies at law or in equity, and all such rights and remedies shall be
cumulative. A Party seeking such equitable relief is not obligated to comply with Section 14.7 (Dispute Resolution) and may seek such relief regardless of any cure rights for such actual or threatened breach. Each Party waives all claims for
damages by reason of the wrongful issuance of an injunction and acknowledges that its only remedy in that case is the dissolution of that injunction. Any requirements for the securing or posting of any bond with such remedy are waived. 

14.11 Force Majeure. Neither Party will be responsible to the other for any delay in or failure of performance of its
obligations under this Agreement, to the extent such delay or failure is attributable to any act of God, act of terrorism, fire, accident, war, embargo or other governmental act, or riot; provided, however, that the Party affected thereby gives the
other Party prompt written notice of the occurrence of any event which is likely to cause (or has caused) any delay or failure setting forth its best estimate of the length of any delay and any possibility that it will be unable to resume
performance; provided, further, that said affected Party will use its commercially reasonable efforts to expeditiously overcome the effects of that event and resume performance. 

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

14.13 No Agency. Except as expressly provided to the contrary in this Agreement, nothing in this Agreement creates a
relationship of agency, partnership, or employer/employee between SRC and LE and it is the intent and desire of the Parties that the relationship be and be construed as that of independent contracting parties and not as agents, partners, joint
venturers or a relationship of employer/employee. 
 14.14 Construction and Interpretation. In this Agreement
(1) “include,” “includes,” and “including” are inclusive and mean, respectively, “include without limitation,” “includes without limitation,” and “including without limitation,”
(2) “or” is disjunctive but not necessarily exclusive, (3) “will” and “shall” expresses an imperative, an obligation, and a requirement, (4) numbered “Section” references refer to sections of
this Agreement unless otherwise specified, (5) section headings are for convenience only and will have no interpretive value, (6) unless otherwise indicated all references to a number of days mean calendar (and not business) days and all
references to months or years mean calendar months or years, (7) references to $ or Dollars mean U.S. Dollars, and (8) hereof,” “herein” and “herewith” and words of similar import, unless otherwise stated, shall be
construed to refer to this Agreement as a whole and not to any particular provision of this Agreement. 
 14.15 Condition Precedent to
the Effectiveness of this Agreement. This Agreement will not become effective until it has been approved by the Audit Committee of the SHC Board (or a subcommittee thereof, including the Related Party Transactions Subcommittee). 

  
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 14.16 Dispute Resolution. Except as provided for in Section 14.11
(Equitable Relief), all Disputes related to this Agreement are subject to Article XI (Dispute Resolution) of the Separation Agreement. 

14.17 Governing Law; Jurisdiction. 

(a) Governing Law. This Agreement (and all claims, controversies or causes of action, whether in contract, tort or otherwise, that may be based
upon, arise out of or relate to this Agreement or the negotiation, execution, termination, performance or nonperformance of this Agreement (including any claim, controversy or cause of action based upon, arising out of or relating to any
representation or warranty made in or in connection with this Agreement or as an inducement to enter into this Agreement)) shall be governed by, and construed and enforced in accordance with, the federal laws of the United States, including the
Lanham Act, and the internal laws of the State of Illinois, without regard to any choice or conflict of law provision or rule (whether of the State of Illinois or any other jurisdiction) that would cause the application of the laws of any
jurisdiction other than the State of Illinois. This Agreement will not be subject to any of the provisions of the United Nations Convention on Contracts for the International Sale of Goods. 

(b) Jurisdiction. Each of the Parties hereto irrevocably agrees that all proceedings arising out of or relating to this Agreement and the
rights and obligations arising hereunder, or for recognition and enforcement of any judgment in respect of this Agreement and the rights and obligations arising hereunder brought by the other Party hereto or its successors or assigns shall be
brought, heard and determined exclusively in any federal or state court sitting in Cook County, Illinois. Consistent with the preceding sentence, each of the Parties hereto hereby (a) submits to the exclusive jurisdiction of any federal or
state court sitting in Cook County, Illinois for the purpose of any proceeding arising out of or relating to this Agreement or the rights and obligations arising hereunder brought by any Party hereto and (b) irrevocably waives, and agrees not
to assert by way of motion, defense, counterclaim, or otherwise, in any such proceeding, any claim that it or its property is not subject personally to the jurisdiction of the above-named courts, that the proceeding is brought in an inconvenient
forum, that the venue of the proceeding is improper, or that this Agreement or any of the other transactions contemplated by this Agreement may not be enforced in or by any of the above-named courts. Each Party agrees that service of process upon
such party in any such action or Proceeding shall be effective if notice is given in accordance with Section 14.5. 

  
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 (c) Waiver of Jury Trial. EACH OF THE PARTIES HERETO HEREBY WAIVES TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY WITH RESPECT TO ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT. EACH OF THE
PARTIES HERETO HEREBY (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF THE OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND
(B) ACKNOWLEDGES THAT IT HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT, AS APPLICABLE, BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 14.18 (c). 

14.18 Counterparts. This Agreement may be executed and delivered (including by facsimile or other electronic transmission (e.g.,
..pdf file) in counterparts, and by the Parties in separate counterparts, each of which when executed shall be deemed to be an original, but all of which taken together shall constitute one and the same agreement. 

14.19 Survival. Each term of this Agreement that would, by its nature, survive the termination or expiration of this Agreement will so
survive, including the obligation of either Party to pay all amounts accrued hereunder and including the provisions of Section 4 (Fees), Section 8.13 (Ownership of Data and Other Assets), Section 9
(Confidentiality), Section 10.3 (Intellectual Property), Section 11 (Defense and Indemnity; Limitation of Liability), Section 14.10 (Equitable Relief), and Section 14.17 (Governing Law; Jurisdiction).

 Signature Page Follows 

  
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 IN WITNESS WHEREOF, the parties have caused their respective duly authorized
representatives to execute this Agreement effective as of the Effective Date. 
  

									
	LANDS’ END, INC.	 		 	SEARS, ROEBUCK AND CO.
					
	By:	 	 /s/ Edgar O. Huber
	 		 	By:	 	 /s/ Robert A. Riecker

					
	Name:	 	 Edgar O. Huber
	 		 	Name:	 	 Robert A. Riecker

					
	Its:	 	Chief Executive Officer	 		 	Its:	 	 Vice President, Controller and Chief Accounting Officer

 Retail Operations Agreement – Signature Page 

 APPENDIX #1 

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

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

“Business Day” means any day that is not a Saturday, a Sunday or any other day on which banks are required or authorized by Applicable Law to
be closed in New York, New York. 
 “Claims” means, as applicable, the LE Defended Claims and the SRC Defended Claims. 

“Competitor” has the meaning ascribed to it in the Separation Agreement. 

“Competitor Affiliates” has the meaning ascribed to it in the Separation Agreement. 

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

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

“Good Faith” means honesty in fact and the observance of reasonable commercial standards of fair dealing in accordance with Applicable Law.

 “Financial Services Agreement” has the meaning ascribed to it in the Separation Agreement. 

“Indemnified Party” means, as applicable, the LE Indemnified Parties and the SRC Indemnified Parties. 

 “Intellectual Property” has the meaning ascribed to it in the Separation Agreement. 

“LE Entities” has the meaning ascribed to it in the Separation Agreement. 

“LE Provided Content” means all content or information regarding Merchandise furnished by or on behalf of LE (whether in print or electronic
form) in connection with the Merchandise, SRC and its affiliates websites or otherwise, including marketing and advertising materials (including joint advertisements by the Parties), promotional materials, point of sale displays, content on
packaging, product development information and material, all literature, product descriptions, tags, labels, text, graphics, photographs, video and audio, installation and service instructions and training materials, owner’s manuals and service
manuals. 
 “Merchandise” means the following: apparel, including blouses, tops, tunics, suits, blazers, jumpers, dresses, hats, jackets,
jumpsuits, long and short coats, jackets, sweaters, mufflers, lingerie, scarves, ties, bow ties, collars, swimwear, skirts, jeans, slacks, shorts, short sets, exercise wear, socks, underwear, leotards, tights, leg warmers, sweatshirts, sweat pants,
t-shirts, sports bras, warm-ups, sweatbands, jogging suits and body suits, and other related apparel accessories. 
 “Merchandise
Production” means the development, design, production, manufacture, construction, assembly, packaging, tagging, labeling, shipping and invoicing of Merchandise. 

“Personnel” means the officers, directors, employees, agents, suppliers, licensors, licensees, contractors, subcontractors, advisors
(including attorneys, accountants, technical consultants or investment bankers) and other representatives, from time to time, of a Party and its Affiliates; provided that the Personnel of the LE Entities shall not be deemed Personnel of the SHC
Entities. and the Personnel of the SHC Entities shall not be deemed Personnel of the LE Entities. 
 “Sears Location” shall mean the SRC
store in which the LE Shop resides. 
 “SHC” means Sears Holdings Corporation. 

“SHC Entities” has the meaning ascribed to it in the Separation Agreement. 

“Subsidiaries” has the meaning ascribed to it in the Separation Agreement. 

“Representatives” means Personnel, partners, shareholders, and members. 

“Shared Agreements” has the meaning ascribed to it in the Separation Agreement. 

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

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

 “Transition Services Agreement” has the meaning ascribed to it in the Separation Agreement. 

End of Appendix #1 

 APPENDIX #2 

SERVICES AND FEES 

 Appendix #2 

 

 The services described in this Appendix apply only to the operation of LE Shops 

 

																					
	 Service or Business Area
	  	 	  	 Services
	  	 Fees/Methodology For
Determining Fees

	FINANCE & ACCOUNTING	  		  		  	
					
	Finance and Accounting Services	  		  		  		  	$1500/month for accounting services
	General Ledger	  		  	 •
	  	Compile and load general ledger information for LE Shops into Essbase financial reporting database, EIS and financial transaction databases to be used for internal reporting and analysis by LE. SRC will inform LE of any
material processing errors or material data feed issues that would impact LE’s financial results.	  	
					
		  		  	 •
	  	Provide LE limited read-only access to the SRC finance general ledger system to process all accounting-related activities for LE Shops Program business, including PeopleSoft GL and stand-alone Stock Ledger processing.
LE will not modify or make any entries into the SRC accounting systems.	  	
			
	System processing	  	 Process files and load data for the following system interfaces as they relate to the LE Shops Program business: 
	  	
					
		  		  	•	  	Purchase order processing/receipt of goods processing	  	
					
		  		  	•	  	Markdown processing	  	
					
		  		  	 •
	  	Receipt processing from LE	  	
					
		  		  	 •
	  	Freight transactions	  	
					
		  		  	 •
	  	Return goods processing (Central Returns Center)	  	
					
		  		  	 •
	  	Return goods process (returns to LE)	  	
						
		  		  		  	 •
	  	Invoice matching/vendor payment/adjustments	  	
						
		  		  		  	 •
	  	Inventory shrink calculations and write-offs	  	
						
		  		  		  	 •
	  	Miscellaneous gross margin adjustments	  	
						
		  		  		  	 •
	  	In-transit reconciliations	  	
						
		  		  		  	 •
	  	Point of Sale file processing	  	
						
		  		  		  	 •
	  	Payroll processing and transfers of payroll costs to LE for dedicated staffing	  	
						
		  		  		  	 •
	  	Marketing expense and charge outs to LE	  	
						
		  		  		  	 •
	  	Logistics expenses	  	
						
		  		  		  	 •
	  	Third-party payment fees	  	
						
		  		  		  	 •
	  	Insufficient funds check expenses	  	
						
		  		  		  	 •
	  	IT expense allocations	  	
						
		  		  		  	 •
	  	Other miscellaneous expenses and allocations	  	

  
 Schedule 5.1 Page A - 1

 Appendix #2 

 

																					
	 Service or Business Area
	  	 Services
	  	 Fees/Methodology For
Determining Fees

	Accounts payable	  	Process invoices that pertain to the LE Shops Program business	  	
	POS	  		  		  		  	
			
		  	 1.         POS Systems
– Provide existing POS systems for LE Shops Program transactions. 
	  	Activation of POS new divisions for LE will be charged to LE at SRC’s then-current hourly labor rate
		  	  

2.         POS offer execution. This includes creation and execution of barcodes, offers at POS (on
receipt), and any updates to POS-based marketing functionality (e.g. offers based on market basket triggered at POS by the purchase of specific merchandise)
	  
			
		  	 3.          POS integration.
	  	
		  		  		  		  		  	  
 a.
	  	  
 Creation and activation of POS divisions for new LE product
lines
	  	
		  		  		  		  		  	  
 b.
	  	  
 Creation and maintenance of POS items, including sale and
special event items and price changes
	  	
								
		  		  		  		  		  	  
 c.
	  	  
 Management of coupon/bar code system for LE Shops
	  	
								
		  		  		  		  		  	  
 d.
	  	  
 Operation of POS terminal sales; cash, check, credit
processing at POS
	  	
	  		  		  		  		  	  
 e.
	  	  
 Credit charge-back follow up
	  	
							
		  		  		  		  	  
 4.
	  	  
 Layaway – SRC will continue to provide
access and support for the existing layaway functionality in all retail locations. SRC will instruct its associates not to offer or support the creation of new layaway contracts after the Effective Date.
	  	
						
		  		  		  	  
 5.
	  	  
 Employee Discounts (as this functionality
existed as of the Effective Date, absent written agreement of the parties to the contrary)
	  	
			
	 LOSS PREVENTION
	  	 Provide inventory Services for LE Shops Business consisting of the following (service only provided upon
request):
	  	 Fee for inventory services is based on the then-current third-party rates at the time of the inventory. The current rate with
RGIS is $45.06 per thousand items counted.
  
 Physical inventory counts that occur at
times when the rest of the FLS store is not conducting a physical inventory count will be treated as a special request and will be charged at the negotiated cost (third party counting the inventory) plus administration fee to negotiate the special
request and coordinate scheduling.

	 General Inventory Safety
	  		  		  	  
 Initial physical inventory scheduling and service provider
management
  
 Physical inventory process management (data feeds to/from
vendor/store/corp/)
  
 Point of contact for inventory related questions, rescheduling
requests, concerns
  
 Disaster related inventory assistance
	  

  
 Schedule 5.1 Page A - 2

 Appendix #2 

 

																					
	 Service or Business Area
	  	 	  	 Services
	  	 Fees/Methodology For
Determining Fees

		  		  		  		  		  		  		  		  		  		  	Consecutive rescheduling requests handled at rate of then-current hourly rate ($62/hour on Effective Date)
				
		  		  	 Provide Technology, Merchandise Protection & Physical Security Management consisting of the following:
	  	
						
		  		  		  		  	 Update of merchandise protection and security tagging standards for LE Shops
	  	
						
		  		  		  		  	Manage SRC third-party contractors for security guards, repairs, upgrades as needed	  	
						
		  		  		  		  	Manage burglar alarm & fire alarm systems maintenance agreement and facilitate needed repairs	  	
						
		  		  		  		  	Manage electronic article surveillance systems maintenance and facilitate needed repairs	  	
						
		  		  		  		  	Provide Closed Circuit TV consultation & solutions for new store construction, existing site improvements/retrofits	  	Closed Circuit TV services charged at then-current hourly rate ($55/hour on Effective Date)
				
		  		  	 Provide Crisis & Emergency Management Services (as needed)
	  	
						
		  		  		  		  	 Weather monitoring and notification Services
	  	
		  		  		  		  	  
 Crisis response and planning Services

 
 Provide risk assessment models and mitigation strategies

 
 Manage public sector partnerships (FEMA/Department of Homeland Security)

 
 Critical incident reporting and management system
	  	Consultative services charged at then-current hourly rate ($65/hour on Effective Date)

  
 Schedule 5.1 Page A - 3

 Appendix #2 

 

																					
	 Service or Business Area
	  	 	  	 Services
	  	 Fees/Methodology For
Determining Fees

				
		  		  	 General Safety Management (as needed)
	  	
							
		  		  		  		  		  	 Access to safety, health, and HAZMAT shipping manuals, training and procedures

 
 Regulatory agency issue management

 
 Core safety processes development and management

 
 Identification and management of personal protective equipment and safety supply lists

 
 Accident reporting and investigation training programs

 
 Manage pest control service contract and inspections

 
 Administration and management of awareness program and material

 
 Management of hazardous materials
	  	
				
		  		  	 Critical Safety Management. SRC will determine, in its discretion, when a SRC or third-party contractor resource is used (as
needed). 
	  	 At then-current hourly rate ($62/hour on Effective Date) per SRC employee as needed for Services, third-party contractor
resources at actual contractor fees 

		  		  		  		  		  	  
 Critical accident management (amputations, fatalities,
etc.)
  
 Critical Health Management (bed bugs, etc.)

 
 Regulatory Agency Activity Management
	  
				
		  		  	 Ongoing Safety Expenses by LE Shops businesses: SRC will determine, in its discretion, when a SRC or third-party contractor
resource is used (as needed).
	  	At then-current hourly rate ($62/hour on Effective Date) per SRC employee as needed for Services; third-party contractor resources at actual contractor fees.
		  		  		  		  		  	  
 Personal protective equipment procurement and repair

 
 Associate Employee training

 
 Safety Equipment Purchase

 
 Fire department citation payments

 
 DOT settlement payments

 
 Hazmat permits and license fees

 
 Miscellaneous safety purchases, fees, equipment, etc.

 
 Annual fire and extinguisher inspections
	  

  
 Schedule 5.1 Page A - 4

 Appendix #2 

 

																					
	 Service or Business Area
	  	 Services
	  	 Fees/Methodology For
Determining Fees

		  	 Provide Loss Mitigation and Resolution Services to LE Shops including but not limited to (as needed):
	  	 Any required third-party contractor resources charged to LE at actual cost

 
 Additional cycle shrink reporting, analysis, and research charged at then-current hourly
rate ($62/hour on Effective Date)
  
 Investigation work conduct at then-current rates
($62/hour on Effective Date.

		  		  		  	  
 Awareness program and training material to mitigate loss
exposure (limited to SRC program material, may require third-party contractor resources)
  

Cycle shrink reporting
  

Civil demand & restitution collection management.
  

Provide loss prevention support for investigative purposes
  

Background / social network investigations
  

Business / owner investigations
  

Theft investigation management to resolve and apprehend dishonest customers and employees
	  
			
		  	 Provide Loss Prevention (“LP”) Database Administration and LP System Support Services to LE including but not
limited to (as needed): 
	  	
					
		  		  		  	 Case/incident management
  

Refund management support
  

Content management for LP related materials
  

Management of LP audit solution
  

Fraud mitigation & investigation of SRC supported e-commerce and payment systems
  

Reporting and application environments for LP related content
	  	New applications or system enhancements charged at then-current hourly rate ($71/hour on Effective Date)
			
	LE SHOPS LABOR PLANNING AND STAFFING SUPPORT (RETAIL SERVICES IN HOFFMAN ESTATES)	  	 LE Shops Labor and Expense Planning Support Services 
	  	
						
		  		  		  	 1.
	  	SRC enters LE provided store monthly division level sales, payroll dollars, hours and LE Manager headcount into the Retail Services Store Plan systems and ultimately SRC Financial Systems. LE submits a file providing
this data by store by month to SRC 3 days before SRC store plans lock.	  	
						
		  		  		  	 2.
	  	SRC develops store financial and staffing plans to enable processing of LE catalog returns through backroom team.	  	
						
		  		  		  	 3.
	  	SRC calculates LE store associate benefits expense	  	
		  		  		  	 4.
	  	Store Plan revisions due to LE Shops staffing change decisions will be processed within 10 working days in order to enable best possible weekly labor demand/initial schedules (WFM or Workforce Management scheduling
system)	  	

  
 Schedule 5.1 Page A - 5

 Appendix #2 

 

																					
	 Service or Business Area
	  	 Services
	  	 Fees/Methodology For

Determining Fees

		  		  	Post-Annual event Store Labor or Expense Re-Plan	  	
						
		  		  		  	1.	  	Store labor /expense plan development for LE Shops locations added during the plan year	  	
						
		  		  		  		  	a. Plans delivered by SRC within 10 business days of receipt of final sales and assumptions on a per-request basis	  	
				
		  		  	LE Shops Labor Scheduling Support Services	  	
						
		  		  		  	1.	  	SRC executes monthly load of LE Shops sales and hours to store scheduling database.	  	
						
		  		  		  	2.	  	 SRC updates scheduling database configuration annually for LE Shops minimum staffing rules by store location (data provided by
LE)
	  	
						
		  		  		  	3.	  	SRC calculates daily productivity targets to drive labor demand for store scheduling.	  	
						
		  		  		  	4.	  	SRC generates volume forecast, labor demand, and initial schedules in Workforce Management scheduling system on a weekly basis	  	
						
		  		  		  	5.	  	Ad hoc services: SRC modification of Workforce Management scheduling system to support store staffing tests, pilots and initiatives. The services that LE requests of the SRC Labor & Expense Management team will be
negotiated relative to available resources, time needed, expected outcome, expected delivery date and project cost.	  	
				
		  		  	Staffing Support Services	  	
						
		  		  		  	1.	  	SRC develops and manages a Staffing Guide indicating headcount needs for the Designated SRC Stores each month	  	
						
		  		  		  	2.	  	SRC modifies Staffing Guide to support staffing tests, pilots and initiatives as agreed between LE and SRC.	  	
				
		  		  	Labor data reporting and requests/reporting	  	
						
		  		  		  	1.	  	 SRC will provide the following reporting:
  

a. 2nd Monday following fiscal month end national level store labor billing recaps are prepared and sent to members of the LE Dodgeville team

 
 b. Weekly forecast data exported from scheduling system, excel file emailed to LE
Dodgeville
  
 c. Weekly LE (Dedicated staffing) Dollars/Hours spent by store exported
from payroll system data, excel file emailed to LE Dodgeville
  
 d. Weekly a file is
created and made available on a shared drive to the LE team (current contact is Timothy.Schell@Landsend.com). The file will contain
	  	

  
 Schedule 5.1 Page A - 6

 Appendix #2 

 

																					
	 Service or Business Area
	  	 Services
	  	 Fees/Methodology For

Determining Fees

		  		  		  		  	 info for every FLS store that sells LE: “Plan Hours”, “System Forecast Hours, “Manager Forecast Hours,”
“Under LRQ Scheduled Hours,” “Under LRQ Actual Hours,” “Actual Hours,” “Training Hours,” “Scheduled Hours.”
  

e. Weekly a file is created and made available on a shared drive to the LE team (current contact is BillySands@Landsend.com). The file will contain “Plan
Hours,” “System Forecast Hours,” “Manager Forecast Hours,” “Scheduled Hours.”
  
	  	
		  		  		  	2.	  	Ad hoc services: LE periodically requests ad-hoc data from the SRC Labor Planning Team and/or SRC Labor Management (WFM) team. Such requests have included actual vs. scheduled hours by day for a particular store or
group of stores, % of LE Shop transactions that flow through a particular register vs. non-LE Shop transactions. The services that LE requests of the SRC Labor &Expense Management team will be negotiated relative to available resources, time
needed, project scope, expected delivery date and project cost.	  	
				
		  		  	Store Associate Commission/Incentive Calculations	  	
						
		  		  		  	1.	  	SRC will provide the following calculations:	  	
							
		  		  		  		  	a.	  	 Daily – LE FDA Program - as part of scheduled production processing, LE FDAs are calculated on prior day’s qualifying
sales/returns received via SRC POS/LCI data feed. At the end of the morning process, the FDA sales/calculations are displayed on the Associate Commission Portal at Associate/Transaction level, viewable by the associate and store managers/human
resources.
	  	
							
		  		  		  		  	b.	  	 Weekly – LE FDA Program - (Sunday night, and if necessary for late reporting stores, Monday Morning), LE FDA calculations
(combined with all other FDA calculations), by associate, are passed to the Peoplesoft Payroll system for inclusion in the next scheduled paycheck. Monday afternoon, an excel spreadsheet, reporting the prior week’s LE $3-for-3 payouts, is sent
via email to specified individuals at LE Dodgeville
	  	
							
		  		  		  		  	c.	  	 Daily – LE Direct - a file is received from LE, normally by 7:00am. The file contains SHIPPED, RETURN and BACKORDER status
transactions. LE Direct FDAs are filtered and calculated on prior day’s sales/return. Calculation is dependent on data sent from LE team in Dodgeville. At the end of the morning process, the FDA sales/calculations are displayed on the Associate
Commission Portal at Associate/Transaction level, viewable by the associate. Backorder status is also displayed to the associate.
	  	

  
 Schedule 5.1 Page A - 7

 Appendix #2 

 

																					
	 Service or Business Area
	  	 Services
	  	 Fees/Methodology For

Determining Fees

		  		  		  	2.	  	Additional services available on a per-request basis. An example would be the LE “Save a Sale” Program (scheduled to end 2/2/2014). Any incremental commission/incentive services that LE requests of the SRC
Labor & Expense Management team must be received at least 3 weeks prior to potential start date and will be negotiated relative to available resources, time needed, project scope, expected delivery date and project costs.	  	
				
		  		  	“As Requested” Services	  	
		  		  		  	  
 1.
	  	  
 Additional services as mutually agreed upon in writing by
the Parties. Each additional service priced individually based on mutually agreed-upon scope of work and requested delivery time
	  	
			
	STORE LEVEL LABOR STAFFING SUPPORT (SEARS FULL LINE STORE LOCATIONS)	  	 Human Resources support
	  	
	  		  	  
 1.
	  	  
 Recruiting/onboarding of store associates
	  	
	  		  	  
 2.
	  	  
 Processing of associate unemployment claims
	  	
	  		  	  
 3.
	  	  
 Processing/review of workers’ compensation
charges
	  	
	  		  	  
 4.
	  	  
 Train new hire on store practices, including use of POS
terminals
	  	
		  		  		  	  
 5.
	  	  
 Performance appraisals/reviews
	  	
					
	RETAIL SERVICES	  		  		  		  	
		  		  	 Signing
  

When requested by LE, SRC receives department and promotional signage from LE associates and will install within LE Shops consistent with the parties’
past practices.
	  	
				
		  		  	 Housekeeping services
  

SRC shall provide routine janitorial service in the LE Shops, consistent with the janitorial services regularly performed in the Designated SRC Store.
	  	
				
		  		  	 Customer complaint resolution
  

Execute existing customer complaint resolution process
	  	
				
		  		  	SRC/LE Communications	  	
						
		  		  		  	 1.
	  	 Facilitate communication of SRC store-wide events to LE Shop associates
	  	
						
		  		  		  	2.	  	Facilitate communication of LE programs and events to SRC merchants and store associates	  	
				
		  		  	 Commissions Expense
  

Pay commissions/incentives to store associates for LE Shop merchandise or services sold.
	  	Actual cost based on commissions/incentives paid to store associates for LE Shop sales (2013 forecasted costs at this methodology: $12,875)

  
 Schedule 5.1 Page A - 8

 Appendix #2 

 

																					
	 Service or Business Area
	  	 Services
	  	 Fees/Methodology For

Determining Fees

	*Staffing levels determined pursuant to Retail Operations Agreement. Staffing levels as of Effective Date are identified on Schedule A attached hereto.	  	 *Dedicated Consultative Selling Associates - Lands’ End

 
 LE Shop-specific sales, member assistance, sales floor merchandising, and replenishment,
merchandising adjacency moves within the LE Shop space, and all LE Shop merchandise pricing tagging/signing activity (promotional, clearance, etc.) LES agrees to ensure that each shop is staffed with at least one associate available to assist
members in every hour the store is open. Requests to deviate from this standard must be agreed to in advance by both parties. SRC will consult LE regarding rates to be paid to the Dedicated LE Associate, but SRC will determine in its sole discretion
the rates paid to the Dedicated LE Associate.
	  	Actual cost based on associates’ Peoplesoft department - direct charge to business (2013 forecasted costs at this methodology: $24,617,036)
				
		  		  	 *Assistant Store Manager – Apparel
  

Manage the LE Shop business in the store and lead/train associates in the department in stores with no dedicated LE salaried manager
	  	 Billed using the following formula:
  

(Actual cost of Apparel Assistant Store Manager *(store level LE Sales / store level Apparel ASM Sales) = fee

 
 Apparel ASM Sales are the sales of the divisions that the Apparel ASM
manages.

				
		  		  	 *Assistant Store Manager - Lands’ End
  

Dedicated to Management of the LE Shops Program business in the store and lead/train associates in the department. SRC will consult LE on the salary to be paid
to the ASM-LE, but SRC will determine in its sole discretion the salary paid to the ASM-LE.
	  	Where dedicated LE manager in place, billed direct at actual cost. (2013 forecasted costs at this methodology: $1,580,580)
				
		  		  	 Complete Reset or merchandising projects
  

Request non-LE Shop associate assistance to complete merchandise resets (changes to how merchandise is displayed in the store or the addition or dropping of
new or old product)
	  	Only as requested by client and subject to store resource availability. Billed based on work hours purchased at actual cost. (2013 forecasted costs at this methodology: $111,559)
				
		  		  	 Re-Pricing (re-ticketing)
  

Request non-LE Shop associate assistance in locating merchandise, re-locating/consolidating as required, and affixing new price sticker and/or sign to each
piece of merchandise and to fixture.
	  	Only as requested by client and subject to store resource availability. Billed based on work hours purchased at actual cost. (2013 forecasted costs at this methodology: $3,645)

  
 Schedule 5.1 Page A - 9

 Appendix #2 

 

																					
	  

Service or Business Area
	  	 Services
	  	 Fees/Methodology For

Determining Fees

		  		  	 Sales floor Replenishment – Divisional Shops only

 
 Move overstock merchandise from stockroom to sales floor. Daily inspections of sales floor
and replenishment/ordering of merchandise for bins/hook that are low or zero stock. 
	  	Only as requested by client and subject to store resource availability. Billed based on work hours purchased at actual cost. (2013 forecasted costs at this methodology: $82,823)
				
		  		  	 Receive, prep and move merchandise
  

Receive merchandise into store, Prepare merchandise for sales floor. Move all received merchandise to sales floor, move overstock back to stockroom
	  	Individual store time standards and labor wage rates. (2013 forecasted costs at this methodology: $912,189)
				
		  		  	 Merchandise Pick-up service
  

Includes basic Merchandise Pick-up services, web-to-store, .com returns
	  	Individual store time standards and labor wage rates. (2013 forecasted costs at this methodology: $27,244)
				
		  		  	 Remodel/startup payroll
  

Extraordinary one time payroll cost for support of major remodels by store associates outside of the dedicated LE team
	  	Only as requested by client and subject to store resource availability. Billed at actual cost on work hours purchased.
				
		  		  	 Benefits
  

SRC cost of payroll taxes, medical, associate personal days (vacation, holidays, illness, etc.) associated with labor devoted to support of LE Shop.
	  	 Billed using the following formula:
  

(National LE Payroll $ / National Total Payroll $)*National Benefits Expense = fee.
  

2013 forecasted costs at this methodology: $5,773,014)

				
		  		  	 Workers’ Comp/Return-to-Work expenses
  

SRC cost of workers’ compensation claims and/or Return-to-Work expenses for dedicated LE Shop store associates (both exempt and non-exempt)
	  	
				
		  		  	Assumed Receipt Receiving Policy and Procedure	  	
						
		  		  		  	1.	  	LE items arriving to stores through SLS deliveries will be received using standard SRC assumed receipt policy and procedure with Advanced Shipping Notice (ASN) item detail information	  	
						
		  		  		  	2.	  	LE items arriving to stores through UPS deliveries will be received using standard SRC DC to store receiving policy and procedure with Advanced Shipping Notice (ASN) item detail information	  	

  
 Schedule 5.1 Page A - 10

 Appendix #2 

 

																					
	 Service or Business Area
	  	 Services
	  	 Fees/Methodology For

Determining Fees

		  		  		  	3.	  	Inventory validation or reconciliation requests from LE which are not part of our base assumed receipt policy and procedure will be handled via a Special Project Request at Special Project rate.	  	
				
		  		  	Merchandise Preparation	  	
						
		  		  		  	1.	  	Associates will identify and separate LE product from all other brands	  	
						
		  		  		  	2.	  	Organize LE product by division and place on LE fixtures	  	
						
		  		  		  	3.	  	Apparel items requiring to be rehung on LE wooden hangers will be prepped according to merchandise presentations standards provided by LE	  	
						
		  		  		  	4.	  	All apparel items will be stripped of plastic, tissue and cardboard prior to being placed on the floor	  	
						
		  		  		  	5.	  	Place EAS or ink tags on all required items according to Loss Prevention tagging guidelines. LE will approve any changes to current guidelines.	  	
				
		  		  	Merchandise Return Notifications (MRN)	  	
						
		  		  		  	1.	  	Associates locate and pull all identified items associated with a MRN for further inventory and shipping processes	  	
						
		  		  		  	2.	  	Associates will scan MRN items into the Markdown Recording System to reduce inventory and on-hand counts	  	
						
		  		  		  	3.	  	All scanned items will be packaged and sent back to the Central Return Center (CRC) with a red label for further processing	  	
						
		  		  		  	4.	  	MRN validation or reconciliation requests from LE which are not part of our base assumed MRN policy and procedures will be handled via a Special Project Request at Special Project rate.	  	
				
		  		  	 Handling of LE Catalog Returns
  
	  	Returns handling incremental costs to be calculated at the then-current hourly rate ($154 /1,000 at the Effective Date) for each incremental return transaction.
		  		  		  	1.	  	 Processing by Cashier (member return at POS) and Backroom team (handling/shipping of returned merchandise) associates across the
Full Line Stores chain
  
	  
		  		  		  	2.	  	 Provide LE an extract of the SRC POS transfile (via NFX) of all LE return transactions

 
	  
		  		  		  	3.	  	Should LE return volume exceed then-current levels (2,253,821 return transactions processed in Sears Full Line Stores annually) on a monthly basis (See 2013 Catalog return rates listed on Schedule B attached hereto),
incremental costs will be billed to LES. Return volumes at or below the then-current levels are not billed.	  
						
		  		  		  	4.	  	These costs are not included as payroll in the benefit calculation	  	
				
		  		  	End of Season Mark Out of Stock (MOS)	  	
						
		  		  		  	1.	  	LE product will be identified for end of season MOS as inventory that has not sold after establish end of season markdowns	  	

  
 Schedule 5.1 Page A - 11

 Appendix #2 

 

																					
	 Service or Business Area
	  	 Services
	  	 Fees/Methodology For

Determining Fees

		  		  		  	2.	  	Unsold inventory will be marked down to zero dollars through the standard Price Change Notice process	  	
		  		  		  	  
 3.
	  	  
 Dedicated LE associates will be responsible for removing
zero value items from the sales floor and stage for backroom processing
	  	
		  		  		  	  
 4.
	  	  
 Backroom associates will package and sent all zero value
items back to the Central Return Center (CRC) with a yellow label for further reverse flow processing
	  	
			
	Detail control center	  	 Detail Control Center POS Transaction Processing
	  	
					
		  		  	  
 1.
	  	  
 Processing for POS fallout, missing and out-of-balance
transactions
	  	
	  		  	  
 2.
	  	  
 Processing of POS debit reversals
	  	
	  		  	  
 3.
	  	  
 Resolution of layaway contracts and corresponding item and
order status changes
	  	
	  		  	  
 4.
	  	  
 Provide research, investigation, analytics and case
resolution support of Citi and third party credit card dispute and chargeback cases
	  	
				
	Check Processing Expenses	  		  	SHMC incurs check guarantee expense. LES will be charged monthly for check acceptance costs based on SHMC check expense.	  	Rate based on balance of check sales by Business Unit (2013 forecasted charge on this methodology: $22,813)
				
	Business Licenses	  		  	SRC will obtain any business licenses on behalf of LE upon request	  	Actual cost
				
	New Store Opening/PMM Support	  		  	As needed, LE may require SRC/PMM support to open new store locations. These services will be provided on an “as needed” basis.	  	Fees to be negotiated at time of service request.
										
	 LOGISTICS & DISTRIBUTION
  
	  		  		  		  		  		  		  		  		  	
	Transportation	  	 1. Domestic Transportation:
  
	  	
		  	 •     Receipt of replenishment shipments via UPS (charged
to LE)
  

•     SRC transports goods from its distribution centers to stores. This service
includes:
  

•     Contracting for domestic inbound/outbound transportation through a sequential
combinatorial bid process using historical lane volumes and store clusters. Lanes awards to carriers take into account the least cost alternative that meets the service requirements

 
 •     Managing flow
of merchandise from DC to all LE Shop locations
  

•     Establishing store delivery schedules from DC’s to LE Shop based on
historical volumes.
	  	 Transportation Services: Freight Charges will be passed through to LE at actual cost.

 
 Ad Hoc Services

$50 per man hour
  

Fee Adjustments: On each anniversary of the Effective Date of this Agreement, LE’s fees are subject to an annual adjustment per SRC’s cost
structure.

  
 Schedule 5.1 Page A - 12

 Appendix #2 

 

																					
	 Service or Business Area
	  	 Services
	  	 Fees/Methodology For

Determining Fees

		  		  		  		  		  		  		  		  		  		  	 Freight Cost Allocation: SRC will allocate freight costs to LE as follows: The total transportation cost of each shipment is allocated to LE
based on the percentage of each LE destination’s shipping volume to the total volume shipped in that transport.
  

Rates and costs are subject to change based on rate negotiations with SRC’s carriers’ as outlined in the carrier contracts and as warranted by
changing market conditions.

					
		  		  	2.	  	Inbound Vendor Cross Docking 	  	Current Fixed (Monthly): $32,600
		  		  		  	  
 •
	  	  
 SRC will provide cross-dock access into the Designated
Company Stores.
	  
						
		  		  		  	•	  	Cross dock cartons by 2 forms:	  	
							
		  		  		  		  	1.	  	 Cross dock Inbound Vendor cartons from upstream DCs and move cartons to stores while providing systemic information of contents
(JIT, RIM Flow and Central Stocking processes)
  
	  	 Variable Handling: based on receipt and disbursement volume and vary by flowpath (e.g., automatic cross-dock). Rate at actual
cost.
  
 Variable Handling: based on receipt and disbursement volume and vary by
flowpath (e.g., automatic cross-dock). Rate at actual cost.

		  		  		  		  	2.	  	 Cross dock Vendor Direct to Store cartons via servicing RRC (EMP Expedited Merchandise Process)

 
	  
		  		  		  		  		  		  	 a.
	  	 RRC acknowledges the carton ID (no receipt) as arrived at RRC and ships out on next store delivery

 
	  
		  		  		  		  		  		  	 b.
	  	 RRC passes vendor provided information via ASN to store. Store receipt triggers payment to vendor.

 
	  
		  		  		  	•	  	Move cross dock cartons to stores on next outbound delivery. DCs do not stock cross dock product	  
				
		  		  	2014 Full RRC Rate Table:	  	ACD rate: $0.20/ctn

  
 Schedule 5.1 Page A - 13

 Appendix #2 

 

																					
	 Service or Business Area
	  	 Services
	  	 Fees/Methodology For

Determining Fees

		  		  		  	 Fixed: LE will be billed fixed amount set annually based upon previous year’s DC handling expenses attributed to LE.

 
 LE will be charged variable handling rates for RRC services for merchandise shipped
directly from an RRC to a LE store, if that service is requested at a rate of actual cost.
  

Rate & Fee Adjustments: On each anniversary of the Effective Date of this Agreement, LE’s rates and fees are subject to an annual adjustment per
SRC’s cost structure.

					
	Crossdock Warehouse Distribution	  		  		  		  	
		  		  	1.	  	Special Project Requests	  	 Special product rate to be negotiated by the parties on a project-by-project basis.

		  		  		  		  	  
 •
	  	  
 Special requests for non-standard services, such as
re-ticketing or re-cartonization, will be charged to LE on a per-project basis.
	  
							
		  		  		  		  	•	  	Special Project Requests shall be billed at Special Project rate.	  	
							
		  		  		  		  	•	  	All Special Project Requests will be handled through SRC assigned Manager of Supply Chain Operations for LE and through the SRC Director of Return Logistics for LE	  	
					
		  		  	2.	  	Disposition of Unsalable, Defective and Obsolete Goods	  	 CRC handling services are billed on a per scan basis.

Rate at actual cost.

		  		  		  		  	  
 •
	  	  
 Process DC returns to Vendor via RA procedures (Return
Authorization)
  
	  
		  		  		  		  	•	  	 Provide liquidation service (sell to salvager, destroy/deface and dispose) per LE direction
	  
							
		  		  		  		  	•	  	Manage the liquidation of damaged merchandise (assigned to damage bin) per LE guidelines	  	Transportation rates are based on the average size of the item and charged per scan. LE is assigned a rate based on the average cube per selling unit.
		  		  		  		  	•	  	SRC manages store liquidation recoveries such as Store RA flowing via SRC’s reverse logistics network.	  
		  		  		  		  	•	  	Salvage revenue is derived from recovery of salvageable merchandise. Rate is set by BU in accordance with our agreement with third party(s).	  	

  
 Schedule 5.1 Page A - 14

 Appendix #2 

 

																					
	 Service or Business Area
	  	 Services
	  	 Fees/Methodology For

Determining Fees

		  		  		  		  		  		  	 Fixed rate set at beginning of year based on prior year actual fixed costs attributed to LE. Fixed charges represent the portion of the CRC
expense that does not vary with volume.
  
 2014 CRC Rates are as follows:

CRC Handling: $0.349/scan
 Transportation: $0.130/scan

Supplies: $0.068/Scan
 Fixed (Monthly): $16,611

Salvage Revenue: passed through based upon actual receipt.

					
		  		  	3.	  	Logistics Administrative Services	  	
						
		  		  		  	•	  	Customer Service	  	
							
		  		  		  		  	v	  	SRC will assign a Manager of Supply Chain Operations (MSCO) to act as single point of contact for LE. The following services are included:	  	
								
		  		  		  		  		  	•	  	Works with business on new initiatives and defining new requirements	  	
								
		  		  		  		  		  	•	  	Provides escalation support for day-to-day activities	  	
						
		  		  		  	•	  	Work on behalf of LE Shops:	  	
							
		  		  		  		  	•	  	For claims – Overs/Shorts/Damages (OS & Ds)	  	
						
		  		  		  	•	  	Return Logistics (Central Return Centers)	  	
							
		  		  		  		  	•	  	Manage all Vendor return and product liquidation processes/ agreements	  	
					
		  		  	4.	  	Inventory Management	  	
					
		  		  		  	SRC will assist with the resolution if inventory management issues, including the following:	  	
								
		  		  		  		  		  	•	  	No ASN found	  	
								
		  		  		  		  		  	•	  	All ASN’s sent to one store; product sent to correct store	  	
								
		  		  		  		  		  	•	  	All ASN’s sent to correct store, product sent to wrong store	  	
					
		  		  	5.	  	 Returns:
  
	  	If LE requests this service, the parties will negotiate and agree
		  		  		  	Return, stock balancing/redeploy events at LE’s request	  

  
 Schedule 5.1 Page A - 15

 Appendix #2 

 

																					
	 Service or Business Area
	  	 Services
	  	 Fees/Methodology For

Determining Fees

		  		  		  		  	•	  	 SRC removes product from inventory
	  	to the cost in writing per Section 1.1(f) of the Retail Operations Agreement prior to the performance of the service.
		  		  		  		  	•	  	SRC ships to CRC	  
					
		  		  	 6.
	  	 Finance Support:
  
	  	Transportation-related invoices and freight bills charged at actual cost.
		  		  		  	•	  	 SRC pays transportation-related invoices and freight bills and subsequently allocates that expense to LE

 
	  
		  		  		  	•	  	 SRC creates reports for internal LE accounting purposes

 
	  
		  		  		  	•	  	 SRC provides a third-party transportation claims processing module with the following functionality:

 
	  
		  		  		  		  	1.	  	 Creation of claims against transportation carriers

 
	  
		  		  		  		  	2.	  	 Monitor offset of claims receivables against FOB payable

 
	  
		  		  		  		  	3.	  	 Implement routine and necessary collection efforts

 
	  
		  		  		  		  	4.	  	 Exercise hold payment if necessary
  
	  
		  		  		  		  	5.	  	 Resolve disputes
  
	  
		  		  		  	•	  	 Provide third-party post-audit on all small package transactions

 
	  
		  		  		  		  		  	•	  	 Create journal entries based on transactional data
	  
	IT SERVICES	  		  		  		  		  		  		  		  		  		  	
			
	 Service or Business Area
	  	 	  	 
			
		  	Information Analytics & Innovation	  	
				
		  	File Exchanges	  	 SRC will continue to prepare and transmit the file exchanges detailed in the attached Schedule C (File Exchanges). Four files are large data
extracts from the SRC CDW (Customer Data Warehouse) and fees associated with provision of these files are based on CPU (Central Processing Unit) consumption:
  
	  	$4,600.00/month Subject to increase or decrease based on CPU consumption.
		  		  		  		  		  		  		  		  		  	 - letxnext.txt
  
	  	
		  		  		  		  		  		  		  		  		  	- leitmtext.txt	  	

  
 Schedule 5.1 Page A - 16

 Appendix #2 

 

																					
	 Service or Business Area
	  	 Services
	  	 Fees/Methodology For

Determining Fees

		  		  		  		  		  		  		  		  		  	 - lemkdntext.txt
  

- lemethtext.txt
  

There are a limited number of system IDs that are used to transmit and receive these file exchanges. The CPU consumption associated with these system IDs and
application platforms are used to arrive at the pricing.
	  	
				
		  	Daily Sales Flash Report	  	SRC creates and sends daily LE Sales Flash Report to LE Executives via email distribution list	  	
			
		  	LE Kiosks	  	
		  		  		  		  		  		  		  		  		  	Provide maintenance and support service for the in-store Lands End kiosks which include 59 kiosks implemented in 2013 and 307 new kiosks to be deployed in early 2014. All kiosks will utilize the Windows 7 operating
system and were purchased with a 3 year warranty from the manufacturer.
			
		  	Support Services -	  	 The maintenance and support service will include physical hardware maintenance (which relies upon the 3 year hardware warranty),
in-store support as well as Level 2 and 3 support, software distribution, rebuilds, issue resolution and anti-virus protection. Level 2 Support includes complex problem determination activities, problem isolation, circumvention support, problem
resolution, fix testing and delivery, and the analysis of performance-related problems. Level 3 Support includes the activities described as Level 2 plus appropriate engagement with applicable third-party hardware, software and/or service providers.
LE will be liable for any increased costs resulting from units not being under a manufacturer’s warranty.

  
 Schedule 5.1 Page A - 17

 Appendix #2 

 

																															
	 Service or Business Area
	  	 Services
	 	  	 Fees/Methodology For

Determining Fees

		  		  		  		  		  		  		  		  	 Quantity
	  	 
 	Monthly
Rate	  
  	  	 
 	Monthly
Expense	  
  	  	 
 	Annual
Expense	  
  	  	 $0/month

Subject to increase if the number of active in-store kiosks increase and/or version of Operating System changes and/or cost changes from service
providers.

		  	 Desktop Support (SHC)
	  	366	  	$	0	  	  	$	0	  	  	$	0	  	  
		  	 Hardware Service
	  		  	$	0	  	  	$	0	  	  	$	0	  	  
		
		  	VDI/Cloud Access for LE Corporate
				
		  	 Support Services -
	  	 Provide Virtual Desktop support for Windows XP and Cloud Infrastructure access.

 
	    
 
	  	 $2,422/month

Subject to increase or decrease based on the number of VDI accounts active, version of Operating System and/or cost changes from service
providers.

		  		  		  		  		  		  		  		  	 Quantity
	  	 
 	Monthly
Rate 1	  
  	  	 
 	Monthly
Expense	  
  	  	 
 	Annual
Expense	  
  	  
		  	 VDI Support Services
	  	27	  	$	21.28	  	  	$	574.56	  	  	$	6,894.72	  	  
		  	 Cloud Access
	  		  	$	68.41	  	  	$	1,847.07	  	  	$	22,164.84	  	  

  
 Schedule 5.1 Page A - 18

 End of Appendix #2 

 APPENDIX #3 

MASTER LEASE 
 See attached. 

End of Appendix #3 

 APPENDIX #4 

MASTER SUB-LEASE 
 See attached. 

End of Appendix #4 

 APPENDIX #5 

EFFECTIVE DATE 
 The
Effective Date is April 4, 2014 
 End of Appendix #5 

 APPENDIX #6 

SRC MARKS 

“SEARS” Trademark Applications and Registrations 

(As of 02/04/14) 
  

							
	 Trademark
	  	 Status
	  	 Appln/Reg No.
	  	 Goods/Services

	sears	  	Registered	  	4,327,638	  	035: Retail department store services and online department store services
				
	

	  	Registered	  	2,985,558	  	035: Retail department store services
				
	SEARS	  	Registered	  	2,764,442	  	035: Retail department store services
				
	

	  	Registered	  	2,989,790	  	035: Retail department store services

							
	

	  	Registered	  	2,985,557	  	035: Retail department store services
				
	SEARS	  	Registered	  	2,916,293	  	036: Financial services, namely, credit card services
				
	SEARS	  	Registered	  	2,982,911	  	035: Retail department store services and estimating of contracting work 039: Car rental services 041: Portrait photography 043: Travel agency services, namely, making reservations and booking for temporary lodging, restaurants
and meals

							
	

	  	Registered	  	3,809,026	  	035: Retail department store services
				
	

	  	Registered	  	3,721,025	  	035: Retail department store services
				
	

	  	Registered	  	3,711,219	  	035: Retail department store services
				
	

	  	Registered	  	3,707,791	  	035: Retail department store services

							
	

	  	Registered	  	2,621,139	  	035: Retail department store services
				
	

	  	Registered	  	2,321,954	  	035: Retail department store services
				
	

	  	Registered	  	1,529,006	  	042: Retail store and catalog services

 End of Appendix #6 

 APPENDIX #7 

LE MARKS 
  

							
	 Mark
	  	 Appln/Reg No.
	  	 Current Owner
	  	 Goods/Services

	LANDS’ END	  	85/792,686	  	Lands’ End Direct Merchants, Inc.	  	003: Body creams; Body lotions; Body sprays; Cosmetics; Fragrance emitting wicks for room fragrance; Fragrance sachets; Hair lotions; Hair shampoos and conditioners; Hair styling preparations; Nail polish; Perfume; Potpourri;
Scented room sprays; Shower and bath gel; Skin soap 004: Candles
				
	LANDS’ END	  	1,263,612	  	Lands’ End Direct Merchants, Inc.	  	018: Bags-Namely, Duffle Bags and Liners, Garment Bags for Travel, Unfitted Toilet Kits, Carry-On Bags, and Tote Bags 025: Clothing-Namely, Shirts, Shorts, Slacks, Trousers, Jackets, Belts, Robes, Ties, Swim Trunks,
Skirts, Sandals, Parkas, Sweaters, Shoes, Hats, Gloves, Socks, Boots, Warmup Suits, and Raingear-Namely, Jackets, Pants, Coveralls and Hats 042: Retail Store and Mail Order Sales Services in the Fields of Wearing Apparel, Sporting Goods,
Luggage, Housewares, Sailing and Camping Equipment, Personal Accessories, Weather Indicators, Stationery, and Related Items

 End of Appendix #7 

 APPENDIX #8 

SUPPLIER NOTIFICATION 

[Lands’ End Letterhead] 
 [Lands’ End
Vendor Business Name] 
 [Address] 
 Re: Separation of
Lands’ End from Sears Holdings Corporation 
 Dear
                    : 
 Recently, Sears Holdings
Corporation announced that it anticipates that Lands’ End, Inc. (“Lands’ End”) will be spun-off as a separate stand-alone company from Sears Holdings Corporation. Your company currently manufactures for Sears, Roebuck and Co.
(“Sears”) merchandise bearing Lands’ End trademarks. As part of Lands’ End’s transition to a separate stand-alone business, merchandise bearing Lands’ End trademarks will hereafter be purchased solely by Lands’ End
and Sears will no longer have any financial responsibility for any Purchase Orders (“POs”) issued on or after that date which is two days after the date of this Letter (the “Transfer Date”) and all merchandise subject to such POs
shall owned by Lands’ End and not Sears. POs issued prior to the Transfer Date are not subject to this notice. You will continue to work with Sears on fulfillment, payment and any other issues related to any current or future POs. 

To facilitate uninterrupted business for Lands’ End, Sears and Lands’ End have entered into an agreement by which Sears will continue to provide
certain merchandise ordering services to Lands’ End. Sears will be operating as agent for Lands’ End for the issuance of POs after the Transfer Date, and you will continue to work with the same business contacts at Sears and Lands’
End as you have prior to the Transfer Date, unless you are notified otherwise. 
 To continue to manufacture merchandise for Lands’ End, your company
will need to create a separate account for the supply of Lands’ End merchandise to Lands’ End. Please work promptly with your existing Lands’ End contact to complete your new account documentation. If you supply goods to Sears under
Sears’ brands as well as goods under Lands’ End’s brands for sale in Sears stores, you will also need to establish a separate Order and Pay DUNS number for Lands’ End and a separate EDI I.D, and we will provide those to you
shortly. 
 By accepting any purchase order after the Transfer Date for Lands’ End merchandise, you agree that: 

 

	 	1)	All POs for Lands’ End merchandise accepted by you after the Transfer Date will be solely between you and Lands’ End, governed by the Lands’ End Purchase Order Terms and Conditions, and you will look
solely to Lands’ End, as the ultimate obligor, for payment and recourse for any other issues related to those POs. 

  

	 	2)	The Sears Universal Terms and Conditions into which you entered with Sears will no longer be effective with respect to, and Sears will no longer be responsible for, POs issued for Lands’ End merchandise after the
Transfer Date. 

	 	3)	You will look solely to Lands’ End concerning POs issued for Lands’ End merchandise after the Transfer Date even though such POs may be issued in Sears name for the benefit of Lands’ End.

 As of the effective date of the spinoff of Lands’ End, Inc. as publicly announced by Sears Holdings Corporation (currently targeted
for April 4, 2014), all POs that Sears has previously issued to you for goods under Lands’ End’s brands but that have not been fully performed will be assigned to Lands’ End, Inc. For ocean shipments that ship after the Transfer Date,
Sears’ freight forwarder will direct you to ship with Land’s End, Inc. shown as the purchaser and consignee. 
 Kindly respond to Joney Cheung at
Joney.Cheung@landsend.com within five days of your receipt of this letter to confirm that you have received it. Please direct any questions regarding this letter to Mary Keenan at Mary.Keenan@landsend.com. 

We appreciate your prompt response to this notice and look forward to a successful continued business relationship. 

Yours Truly, 
 End of Appendix #8

 APPENDIX #9 

CONTACT PERSONS 
  

			
	SRC Contact Person:	  	Sandra Stone
		  	Sears Holdings Management Corporation
		  	3333 Beverly Road
		  	Hoffman Estates, IL 60179
		  	Mailstop: AC-209A-A
		  	(847) 286-8023
		  	sandra.stone@searshc.com
		
	LE Contact Person:	  	Marla Ryan
		  	5 Lands’ End Lane
		  	Dodgeville, Wisconsin 53595
		  	608-935-4198
		  	marla.ryan@landsend.com

 End of Appendix #9EX-10.6

 Exhibit 10.6 

***** Confidential treatment has been requested for portions of this exhibit. The copy filed herewith omits the information subject to the confidentiality
request. Omissions are designated as [*****]. A complete version of this exhibit has been filed separately with the Securities and Exchange Commission. 

Shop Your Way Retail Establishment Agreement 

Between 
 Sears Holdings
Management Corporation 
 And 

Lands’ End, Inc.

April 4, 2014 

 Shop Your Way Retail Establishment Agreement 

This Shop Your Way Retail Establishment Agreement (this “Agreement”) is between Sears Holdings Management
Corporation (“SHMC”) and Lands’ End, Inc. (“LE”) is effective as of              (the “Effective Date”). Each party
to this Agreement is sometimes referred to herein as a “Party” and collectively as the “Parties.” 

Recitals 
 A. SHMC
maintains a rewards program known as the Shop Your WaySM Program (the “Program”). The Program provides Members with Points associated with purchases of merchandise and services at
participating establishments (“Issuing Retailers”) and in connection with promotions and other activities, which Points may be redeemed for merchandise or services at selected establishments (“Redeeming Retailers”)
(collectively, the Issuing Retailers and Redeeming Retailers are referred to herein as the “Participating Retailers”). The Program also provides a social shopping experience for members at www.shopyourway.com (together with
any successor sites, the “Program Site”); and 
 B. LE wishes to enroll in the Program so that LE’s customers who are
Members may earn and redeem Points on purchases in LE’s retail channels, including LE shops within Sears stores (“LE Shops”), and through LE’s direct channels, including LE stores, LE websites, and through LE’s
catalog and call center (collectively, the LE Shops and LE direct channels shall be referred to as “LE Formats”) and otherwise participate in the Program all in accordance with the “Terms and Conditions of the Shop Your Way
Program”. For clarification, LE Formats shall not include the Sears Marketplace, the MyGofer site, the Program Site, or any other website run by SHMC or its Affiliates, and LE’s participation in those websites shall be governed exclusively
by the terms of the parties’ Sears Marketplace – Local Marketplace - MyGofer Fulfilled By Merchant (FBM) Seller Agreement, dated July 24, 2013, as amended (the “Marketplace Agreement”), as further described in
Section 7.A.iv, below. The Terms and Conditions of the Shop Your Way Program are available at www.shopyourway.com/terms or successor location (these, together with any other additional terms and conditions for Program applications,
benefits, promotions or related programs as may from time to time exist and be amended and interpreted by SHMC as permitted hereby, are collectively referred to herein as the “Program Terms and Conditions”). 

Agreement 
 In
consideration of the mutual covenants and promises in this Agreement and other good and valuable consideration, the receipt and sufficiency of which each Party acknowledges, the Parties agree as follows: 

1. Definitions. Exhibit 1 of this Agreement includes a glossary of defined terms. 

2. Term. The term of this Agreement (the “Term”) will begin immediately following the “Effective Time” specified in the
Separation and Distribution Agreement (the “Separation Agreement”) to be executed and delivered by LE and Sears Holdings Corporation (“SHLD”) 

  
 2 

 
(the date on which the Effective Time occurs, the “Effective Date”) and will end, unless terminated earlier, on the third
(3rd) anniversary of the Effective Date. The day that becomes the Effective Date will be inserted in the recitals once the Effective Date has occurred. 

3. Program Overview. 
 a. Program
Responsibilities. Except for LE’s obligations with respect to the Program pursuant to this Agreement and as otherwise provided in this Agreement, SHMC will control and manage the operation and administration of the Program including,
without limitation: (i) the Program Terms and Conditions, (ii) the terms and conditions for advertising and promoting the Program, (iii) the maintenance and retention of Program records, (iv) the terms and conditions for earning
and redemption of Points by Members, and (v) otherwise providing Program benefits to Members. Except as otherwise provided in this Agreement, SHMC’s interpretations of the Program Terms and Conditions will be final and binding absent
manifest error. 
 b. Program Amendments. Subject to applicable law and the next three sentences, SHMC may make generally applicable
amendments or modifications to the Program at any time at its discretion and such amendments or modifications shall be binding on LE. Notwithstanding the foregoing, if an amendment or modification to the Program applies on a non-discriminatory basis
to all Participating Retailers (a “Complying Change”), but has a material adverse effect on LE, LE will provide prompt written notice to SHMC, and SHMC will use commercially reasonable efforts to provide an accommodation for
LE’s approval and consent, which consent will not be unreasonably withheld or delayed. If SHMC is unable or unwilling to provide the accommodation, then the Complying Change will not be binding on LE. No amendment, modification or
interpretation of the Program that contravenes the express terms of this Agreement shall be applicable to LE without the prior written consent of LE, not to be unreasonably withheld or delayed. Nothing in this Agreement will limit SHMC’s right
to add or remove Participating Retailers or other participating companies to or from the Program. 
 4. Program Authorizations; Program Obligations.
SHMC authorizes LE, on a non-exclusive basis and subject to and in accordance with the Program Terms and Conditions and this Agreement, (i) to represent to Members that Members may earn Points with respect to their Program-Eligible Purchases
made at LE Formats, (ii) to accept the redemption of Points as payment for Program-Eligible Purchases made from LE Formats in accordance with the Program Terms and Conditions, and (iii) to perform all other actions authorized or required
by this Agreement. The determination of Program-Eligible Purchases shall be made exclusively by SHMC. At all times during the Term of this Agreement, LE will participate in the Program and will offer and promote the Program to its customers and
Members in all LE Formats in accordance with this Agreement and as LE’s primary loyalty program. Without limiting any of LE’s other obligations contained in this Agreement, LE agrees to: (1) train LE employees on the Program and
the benefits of the Program, (2) market the Program prominently in each of the LE Formats in a mutually agreeable manner, which marketing shall be no less prominent or comprehensive than the current marketing for the Program in those LE formats
where such marketing is taking place as of the Effective Date, (3) facilitate the issuance of Points on all Program-Eligible Purchases at LE Formats, (4) accept the redemption of Points as payment for Program-Eligible Purchases made from
LE Formats in accordance with the Program Terms and 

  
 3 

 
Conditions, (5) make Good Faith efforts to adopt the Program and participate in Additional Point and Surprise Point offers and (6) work with SHMC to promptly integrate with the
Program’s Telluride database with the reasonable costs of such integration to be paid by SHMC. To the extent that LE engages in promotional, marketing, loyalty or other similar activities outside the Program, including, without limitation,
(x) private-labeled credit cards, (y) traditional retail promotional activities such as providing gift cards, coupons, bounce backs, sweepstakes, rebates or other similar offers, or (z) third party affiliate marketing programs
(collectively, “Promotional Activities”), LE and its Affiliates will ensure that such Promotional Activities: (i) are only offered in addition to and not in lieu of the Program, (ii) must not in any way prevent or limit a
Member’s right to earn or redeem Points or otherwise receive Program benefits, (iii) must not require a Member to choose between receiving a Program benefit and a Promotional Activity benefit and (iv) must not in each case be promoted
in the aggregate more prominently or comprehensively than the Program. 
 5. Transaction Information and POS. 

a. Delivery. LE will deliver to SHMC, using delivery methods specified by SHMC from time to time, all Member-specific information with
respect to Program-Eligible Purchases made from LE Formats by Members, including but not limited to, the following: merchandise or service purchased; purchase price paid; purchase location (such as particular store or online); date and time of day
of purchase; associated returns, exchanges, adjustments, and related information; and tender type (not including credit card numbers) (collectively, the “Transaction Information”). 

b. Format. The Transaction Information will be delivered to SHMC in the format and with the frequency, and using the secure delivery
methods, in effect as of the Effective Date. SHMC may revise the format, frequency, and methods related to the delivery of the Transaction Information from time to time upon 30-days’ advance written notice to LE, except that (i) security
related changes shall be made as soon as possible and without unreasonable delay, and (ii) no revision to the format, frequency or method of delivery that will impose material costs or other burdens on LE shall be required without LE’s
consent, not to be unreasonably withheld or delayed. 
 c. POS. LE will, at is sole cost and expense, establish, and at all times
during the Term maintain, the appropriate in-store and online point-of sale and related information systems to meet its enrollment and other Program obligations (the “POS Systems”) and use commercially reasonable efforts to maximize
enrollments. In accordance with prevailing retail-industry standards, the POS Systems will accurately process, record, store, secure, and permit retrieval of all Transaction Information and properly facilitate and support all Program point of sale
functionality and transaction types. With respect to LE’s Inlet Stores (“Inlet Stores”) that do not as of the Effective Date have such a POS System, LE will use commercially reasonable efforts to implement, at its sole cost and
expense, a POS System in accordance with this Section 5.c as soon as reasonably possible. 
 6. Points and Fees. 

a. Issuance of Points. Consistent with and subject to the Program Terms and Conditions, SHMC will issue Base Points, Additional Points
and Surprise Points (collectively, 

  
 4 

 
“Points”) to Members’ Accounts with respect to Program-Eligible Purchases from LE and in connection with promotions and other activities. SHMC will take all related actions
as SHMC determines are appropriate with respect to such purchases (including reflecting returns, exchanges, and similar transactions), promotions and other activities as those actions may affect the Members’ Accounts. 

b. Point Offers. SHMC may make Additional Point offers and Surprise Points offers to Members (in accordance with and subject to the
Program Terms and Conditions and this Agreement) to encourage Members to make Program-Eligible Purchases from LE and others. With respect to existing Additional Point offers as of the Effective Date, SHMC will continue to provide reporting on each
existing Additional Point offer that LE is participating in, and LE may elect not to participate in these offers by providing SHMC with a timely notice of its intent to not participate. With respect to new (never before offered or run) Additional
Point offers after the Effective Date or Additional Point offers that LE is not participating in, SHMC will provide notice to LE of each upcoming new Additional Point offer that is relevant to LE, and LE may elect to participate in the offer by
providing SHMC with a timely notice of its intent to participate. From time to time, SHMC may also inform LE of Surprise Point Offers that may be relevant to LE and that LE may elect to participate in with timely notice of its intent to participate.
If LE participates in an Additional Point Offer or a Surprise Points Offer, LE will pay all applicable fees in accordance with the fee schedule on Exhibit 2. The Parties may mutually agree in advance to conduct Additional Point offers and/or
Surprise Points offers specific to LE, including Additional Point offers that are multiples of Base Points awarded to Members for a Program-Eligible Purchase during the applicable offer period, Additional Points awarded for Program-Eligible
purchases that exceed a certain amount, “Lifecycle Points” awarded at specific events or milestones during Membership, or Points awarded for particular categories of brands or types of purchases. 

c. Points Issuance Fee. Exhibit 2 describes the Points Issuance Fees that LE will pay to SHMC with respect to the issuance of
Base Points and Additional Points in accordance with this Agreement, all of which fees are non-refundable except as otherwise provided in this Agreement, regardless of the extent to which Points are redeemed. SHMC may authorize, upon terms and
conditions determined by SHMC in its sole discretion, additional third parties to issue Points, including new Issuing Retailers. 
 d.
Redemption of Points. LE will, on a non-exclusive basis, accept Points from all Members as partial or full payment for all Program-Eligible Purchases in accordance with the Program Terms and Conditions and this Agreement and regardless of the
means of payment tendered by Members for any portion of Program-Eligible Purchases that are not paid for with Points and regardless of the merchandise and services purchased. SHMC may authorize, upon terms and conditions determined by SHMC in its
sole discretion, additional third parties to redeem Points, including new Redeeming Retailers. 
 e. Reimbursement or Payment Upon
Redemption. SHMC will reimburse LE or LE will pay SHMC (as applicable) for Points that LE, in accordance with the Program Terms and Conditions and this Agreement, accepts from its customers that are Members as payment for Program-Eligible
Purchases at the rate or rates specified on Exhibit 2. Notwithstanding any expiration or termination of this Agreement, SHMC will continue to reimburse LE, or LE will 

  
 5 

 
pay SHMC (as applicable) for all Points earned and/or redeemed by Members for Program-Eligible Purchases at LE prior to such expiration or termination. Subject to SHMC’s prior review and
approval, LE agrees to provide notice to Members in LE Formats at least six (6) months prior to any expiration or termination of this Agreement that they will no longer be able to earn or redeem Points in LE Formats after the applicable
expiration or termination date and LE will make all commercially reasonable efforts to cancel, subside or otherwise cease offering any Additional Point offers from the date such notice is given. 

f. Expiration of Points. SHMC will have no obligation to compensate a Member or LE for expired Points, whether earned by Members at LE
or otherwise. 
 g. Reconciliation and Payment of Points Fees. Subject to Section 6.k below, the amount or amounts of Points
fees that LE owes to SHMC in accordance with this Agreement, and the amount or amounts of Points reimbursement that SHMC owes to LE in accordance with this Agreement, will be determined by SHMC on a monthly basis, which amounts will be netted
against each other. Except as otherwise agreed by the parties, the Party that owes an amount to the other Party after the netting will remit the amount it owes to the other Party within five days of the reconciliation. 

h. Differentiation. SHMC from time to time in its sole discretion may establish multiple rates for earning Points that differentiate
among Members on the basis of, or that depend on, reflect, or are affected by, factors or considerations determined by SHMC in its sole discretion, including the applicable Participating Retailers from whom Program-Eligible Purchases are made, the
types of Program-Eligible Purchases made, Member achievement of specified levels of Program-Eligible Purchases, or similar criteria. SHMC from time to time in its sole discretion may establish multiple rates and/or fees for issuance and redemption
of Points that differentiate among Participating Retailers, and other participants in the Program on the basis of, or that depend on, reflect, or are affected by, factors or considerations determined by SHMC in its sole discretion, including the
applicable Participating Retailers from whom Program-Eligible Purchases are made, the types of Program-Eligible Purchases made, achievement of specified levels of Program-Eligible Purchases, or similar criteria. Nothing in this Agreement is intended
to prohibit, restrict or limit SHMC’s rights to enter into agreements with third parties with respect to the Program or any aspect of the Program on terms similar to or different than those contained in this Agreement. 

i. Expenses. With respect to technology or systems upgrades and other similar changes made in connection with the Program, SHMC is not
obligated to make those technologies or systems available to LE without mutual agreement as to the applicable fees that LE will be responsible for paying for such upgrades and/or other changes. 

j. Permits and Taxes. LE will at its own expense (i) obtain all permits and licenses required under Applicable Law to operate its
business, and (ii) except as otherwise provided in this Agreement or any other agreement that may be entered into between LE and SHMC (or any of SHMC’s non-LE Affiliates), pay and discharge all applicable taxes and assessments which may be
charged or levied, now or in the future, against LE on any Program-Eligible Purchase. Except as otherwise provided in this Agreement or any other agreement that may be entered into between LE and SHMC (or any of SHMC’s non-LE Affiliates), SHMC
shall pay and discharge 

  
 6 

 
all applicable taxes and assessments which may be charged or levied, now or in the future, on the awarding of Points or Program benefits and for issuing any tax information reporting to third
parties relating to taxable Points or Program benefits. Each Party will be responsible for collecting and remitting their own taxes resulting from any income earned under this Agreement. SHC and LE shall cooperate fully at such time and to the
extent reasonably required by the other party in connection with any permits and taxes as provided for in this Section 6.j. 
 k.
Returns. SHMC shall refund all Points fees paid by LE with respect to product returns, and LE shall refund all reimbursements received with respect to Points redeemed by Members for Program-Eligible Purchases at LE Formats that are
subsequently returned. 
 7. Marketing; Services; and LE Product Sales. 

a. Marketing by SHMC for LE. 

i. Certain marketing for LE related to the Program may be performed by SHMC at LE’s request as mutually agreed upon by the Parties and in
accordance with, and subject to the fees described on, Exhibit 3 (as may be amended from time to time, the “Rate Card”), which marketing is referred to as the “Program-Related Marketing.” Program-Related
Marketing includes multi-media advertising, print media, SYW-branded social media, store signage, direct customer communications (such as targeted or un-targeted email, online display or text messaging campaigns), sweepstakes and other contest
offers, and point-of-sale messaging related to the Program. The rates for Program-Related Marketing included initially in the Rate Card are based on the systems and technology available to SHMC as of the Effective Date. Should SHMC obtain or develop
new systems or technologies that can be used for Program-Related Marketing after the Effective Date, SHMC is not obligated to make those systems or technologies available to LE for Program-Related Marketing without mutual agreement as to the
applicable fees. In addition, SHMC may revise the types of Program-Related Marketing and the rates and fees defined in the Rate Card at any time upon 30-days’ prior notice to LE. The Parties will mutually determine the frequency, targeting
rules, and related parameters of all Program-Related Marketing. All Program-Related Marketing is subject to SHMC’s then-current technical capabilities, SHMC’s privacy policy, and the terms of the Rate Card. If the Parties agree on
additional marketing services that are not Program-Related Marketing, the additional marketing services may be reflected in a statement-of-work amendment to this Agreement.  

ii. SHMC will deliver to LE solely for its use in accordance with this Agreement (a) Program-related analytical reports with respect to
LE in the form with the type of content that SHMC provides to its business units and the business units of their Affiliates and (b) other analyses of Transaction Information and other Member activity at LE retail locations prepared from time to
time by SHMC (together, “Member Analytics Reports”). SHMC will include as part of the Member Analytics Reports the following information: (x) offer, marketing and event performance, (y) monthly key LE Member metrics
(enrollment, trip count, penetration, redemption, Points earn, Points burn, etc.), and (z) weekly Points expense and redemption; provided that, Member Analytics Reports will not include any Member-specific or identifiable information. All
Member Analytics Reports are SHMC’s Confidential Business Information and are subject to the terms and conditions of Section 11. 

  
 7 

 iii. SHMC offers the Personal Shopper by Shop Your Way® program (the “Personal Shopper Program”) whereby Members can enroll to become Personal Shoppers (as defined in the Personal Shopper Program Terms and Conditions located at
http://ps.shopyourway.com/terms/PersonalShopper or successor location (as amended and interpreted by SHMC from time to time in its sole discretion, the “PS T&C”)) and recommend to Clients who are Members that they purchase
merchandise from Participating Retailers in the Program. Personal Shoppers earn Commissions on Qualifying Purchases made by their Member Clients. For a period of twelve (12) months from the Effective Date, SHMC will include LE merchandise as a
Qualifying Purchase at no cost to LE. Thereafter, LE may continue to include LE merchandise as a Qualifying Purchase subject to the mutual agreement of the Parties and LE’s payment of any applicable fees. SHMC may terminate the Personal Shopper
Program at any time. The terms “Clients,” “Commission,” and “Qualifying Purchase” are defined in the PS T&C. From time to time, SHMC may offer Members and LE participation in other programs in
connection with the Program. 
 iv. Pursuant to the Marketplace Agreement, LE currently lists LE merchandise for sale on the
Sears.com Marketplace and on the Program Site. In the event of any termination of the Marketplace Agreement, the Parties will work together in Good Faith to negotiate an agreement to permit SHMC to continue to promote, display and sell LE
merchandise on the Program Site. 
 v. With respect to LE-related email communications from the Program, SHMC will comply with the CAN-SPAM
Act as the Sender or Designated Sender (as defined in the act and associated rules promulgated by FTC under the Act), to the exclusion of all others, which email communication will be distinguished from email communications from LE and its
Affiliates, as follows: (a) SHMC will send its email communications from a domain name that clearly indicates SHMC or one of its Affiliates is the Sender; (b) SHMC will not use the name of LE or one of its Affiliates on the FROM line; and
(c) SHMC will not use any LE trademark or logo in the email except in accordance with this Agreement. 
 b. SHMC’s Other
Marketing. SHMC may advertise the Program generally to the extent and via advertising channels that SHMC determines are appropriate. Beginning on and after the Effective Date, SHMC must submit all marketing materials containing LE Marks or
referencing LE’s participation in the Program for LE’s prior approval, which approval LE will not be unreasonably delayed or withheld. If LE unreasonably delays in responding to a request for such prior approval, the marketing materials in
question shall be deemed approved by LE. Nothing in this Agreement restricts SHMC’s right to communicate Transaction Information and administrative information (such as notices of changes to the Program Terms and Conditions) to Members. 

c. LE Email Obligations. With respect to its own email communications LE will comply with the CAN-SPAM Act as the Sender or Designated
Sender (as defined in the act and associated rules promulgated by FTC under the Act), to the exclusion of all others, which email communication will be distinguished from email communications from SHMC and its Affiliates, as follows: (a) LE
will send its email communications from a domain name that clearly indicates LE or one of its Affiliates is the Sender (such as landsend.com); (b) LE will not use SHMC or one of its Affiliates on the FROM line; and (c) LE will not use any
SHMC trademark or logo in the email except in accordance with this Agreement. 
 d. LE Participation on the Program Site. SHMC will
make available functionality on the Program Site to allow LE to promote its brand and products and expects LE to use such functionality during the Term of this Agreement. 

  
 8 

 8. License to Use Marks 

a. SHMC Marks. SHMC hereby grants to LE and its Affiliates a non-exclusive, non-transferable, royalty-free license to use during the
Term, solely in connection with its participation and marketing of the Program in accordance with this Agreement, the trade names, trademarks, and service marks indicated in Exhibit 4, or such other marks as LE and SHMC may agree upon (each a
“SHMC Mark”), subject to SHMC’s prior review and approval of each use. LE acknowledges that the use of any SHMC Mark will not confer upon LE any proprietary rights to the SHMC Mark, and LE will not question, contest, or
challenge SHMC’s ownership of a SHMC Mark. LE will not register or attempt to register any SHMC Mark, or any trade names, or trademarks similar to them. Nothing in this Agreement will be construed to bar SHMC from protecting its right to the
exclusive ownership of a SHMC Mark against infringement or appropriation by any party or parties, including LE. SHMC will have the right to control the quality and nature of the services rendered in conjunction with all SHMC Marks, and LE will
conform to the standards set by SHMC in conjunction therewith. All goodwill related to the use of any SHMC Mark under this license shall inure to SHMC’s benefit. LE shall not sublicense any rights in any SHMC Mark without SHMC’s prior
written consent, which SHMC may withhold in its sole discretion. 
 b. LE Marks. LE hereby grants to SHMC and its Affiliates a
non-exclusive, non-transferable, royalty-free license to use during the Term, solely in connection with its participation and marketing of the Program according to this Agreement, the trade names, trademarks, and service marks of LE (each a
“LE Mark”), subject to LE’s prior review and approval of each use. SHMC acknowledges that the use of any LE Mark will not confer upon SHMC any proprietary rights to the LE Marks, and SHMC will not question, contest, or
challenge LE’s ownership of the LE Marks. SHMC will not register or attempt to register any LE Mark, or any trade names, or trademarks similar to them. Nothing in this Agreement will be construed to bar LE from protecting its right to the
exclusive ownership of the LE Marks against infringement or appropriation by any party or parties, including SHMC. LE will have the right to control the quality and nature of the services rendered in conjunction with any LE Mark, and SHMC will
conform to the standards set by LE in conjunction therewith. All goodwill related to the use of any LE Mark under this license shall inure to LE’s benefit. SHMC shall not sublicense any rights in any LE Mark without LE’s prior written
consent, which LE may withhold in its sole discretion. 
 c. Injunctive Relief. Each Party acknowledges that (i) the other
Party’s trade names, trademarks, and service marks possess a special, unique and extraordinary character which makes it difficult to assess the monetary damage that the other Party or its Affiliates would sustain in the event of unauthorized
use, (ii) irreparable injury would be caused to the other Party by such unauthorized use for which there would be no adequate remedy at law, and (iii) injunctive relief would be appropriate with respect to any unauthorized use. 

9. Enrollment of New Members. SHMC authorizes and directs LE to enroll new Members in the LE Formats. LE will use commercially reasonable efforts to
maximize enrollments of its 

  
 9 

 
customers in the Program. LE will make available to customers at the applicable point of sale (or otherwise as agreed upon by the Parties) all marketing and legal materials provided by SHMC,
including marketing materials detailing enrollment procedures. LE will require each new Member enrolled through a LE Format to agree to the then-current Program Terms and Conditions in the manner required by SHMC. 

10. Data Ownership, Sharing and Use. 

a. Program Data. SHMC is the sole and exclusive owner of all data and information relating to Members and the Program,
including, without limitation, the Member list, all Member enrollment and contact information, Member passwords, Member Numbers, and Points accounts, but excluding the Transaction Information and the Member Analytics Reports (collectively,
“Program Data”), and LE has, and will have, no ownership interest of any kind whatsoever in the foregoing. For clarification, all data and information relating to Members and the Program that is collected by LE pursuant to this
Agreement, including Program enrollment information (collectively, “LE-Collected Program Data”) shall be deemed Program Data and shall be solely and exclusively owned by SHMC. The LE-Collected Program Data will be delivered to SHMC
in the format and with the frequency, and using the secure delivery methods, in effect as of the Effective Date. SHMC may revise the format, frequency, and methods related to the delivery of the LE-Collected Program Data from time to time upon
30-days’ advance written notice to LE, except that security related changes shall be made as soon as possible and without unreasonable delay. SHMC may use the Program Data to operate the Program and for all other purposes in accordance with its
privacy policy and Applicable Law (including transfer to, and use by, third parties) without restriction. Except as authorized under this Agreement, LE may not use or disclose Program Data in any manner. Further, to the extent LE or its Affiliates
maintain or store any Program Data that may have been received or may in the future be received from SHMC or any other source, including, without limitation, any database of Member information, LE agrees to promptly return or secure destruction of
such Program Data in an expeditious manner in a manner consistent with Exhibit 5 upon SHMC’s request. 
 b.
Transaction Information. LE and SHMC are joint owners of the Transaction Information; provided that, SHMC is the sole and exclusive owner of Program Data derived from the Transaction Information. LE shall provide SHMC with Transaction
Information in accordance with Section 5. SHMC may use the Transaction Information to operate the Program and otherwise in accordance with its privacy policy and Applicable Law. LE shall use the Transaction Information in accordance with its
privacy policy and Applicable Law. 
 c. Member Analytics Reports. LE and SHMC are joint owners of the Member Analytics Reports. Each
Party may use Member Analytics Reports in accordance with its privacy policy and Applicable Law and otherwise in accordance with this Agreement. 

d. LE Opt-In Data. At LE Shops, SHMC may offer customers the ability to opt-in to receive emails directly from LE (“LE Shop
Opt-Ins”). With respect to each LE Shop Opt-In, SHMC will provide LE with the email address and name of the individual opting in (“LE Shop Opt-In Data”). LE and SHMC are joint owners of the LE Shop Opt-In Data; provided
that, SHMC is the sole and exclusive owner of Program Data derived from the LE Shop Opt-In Data. LE Shop Opt-In Data will be delivered to LE in the format and with the frequency, and using the secure delivery methods, in effect as of the Effective
Date. LE may revise the format, frequency, and methods related to the delivery of the LE Shop Opt-In Data from time to time upon 30-days’ 

  
 10 

 
advance written notice to SHMC, except that security related changes shall be made as soon as possible and without unreasonable delay. Each Party may use LE Shop Opt-in Data in accordance with
its respective privacy policy and Applicable Law provided LE posts clear and prominent notice of its own privacy policy at the point of collection subject to SHMC approval. Except for LE-Collected Program Data, LE is the sole and exclusive owner of
any email opt-in information collected in an LE Format other than LE Shops. 
 e. Privacy. During the Term, the Parties will work
together in Good Faith to make any changes to their respective privacy policies that are deemed necessary to reflect the provisions of this Section 10 and to otherwise ensure that these provisions comply with Applicable Law. 

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

b. Treatment of Confidential Information. The Receiving Party will use Confidential Information only in connection with this Agreement
as set forth in this Section 11. 
 i. Limitations. The Receiving Party will (A) restrict disclosure of the Confidential
Information to its and its Affiliates’ Personnel with a need to know the Confidential Information for purposes of performing the Receiving Party’s responsibilities or exercising the Receiving Party’s rights under this Agreement,
(B) advise those Personnel of the obligation not to disclose the Confidential Information or use the Confidential Information in a manner prohibited by this Agreement, (C) copy the Confidential Information only as necessary for those
Personnel who need it for performing the Receiving Party’s responsibilities under this Agreement, and ensure that confidentiality is maintained in the copying process; and (D) protect the Confidential Information, and require those
Personnel to protect it, using the same degree of care as the Receiving Party uses with its own Confidential Information, but no less than reasonable care. 

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

iii. Destruction. Without limiting the foregoing, when any Confidential Information is no longer needed for the purposes contemplated
by this Agreement the Receiving Party will, promptly after request of the Disclosing Party, either return such Confidential Information in tangible form (including all copies thereof and all notes, extracts or summaries

  
 11 

 
based thereon) or certify to the other Party that it has destroyed such Confidential Information (other than electronic copies residing in automatic backup systems and copies retained to the
extent required by Applicable Law, regulation or a bona fide document retention policy). 
 c. Exceptions to Confidential Treatment.
The obligations under this Section do not apply to any Confidential Information that the Receiving Party can demonstrate (1) was previously known to the Receiving Party without any obligation owed to the Disclosing Party or its Affiliates to
hold it in confidence, (2) is disclosed to third parties by the Disclosing Party or its Affiliates without an obligation of confidentiality to the Disclosing Party or its Affiliate, as applicable, (3) is or becomes available to any member
of the public other than by unauthorized disclosure by the Receiving Party, its Affiliates or its or their Personnel, (4) was or is independently developed by the Receiving Party or its Affiliates or Personnel without use of the Confidential
Information, (5) legal counsel’s advice is that the Confidential Information is required to be disclosed by Applicable Law or the rules and regulations of any applicable Governmental Authority and the Receiving Party has complied with
Section 11.d (Protective Arrangement) below, or (6) legal counsel’s advice is that the Confidential Information is required to be disclosed in response to a valid subpoena or order of a court or other governmental body of competent
jurisdiction or other valid legal process and the Receiving Party has complied with Section 11.d (Protective Arrangement) below. 
 d.
Protective Arrangement. If the Receiving Party determines that the exceptions under Section 11.c.5 or Section 11.c.6 apply, the Receiving Party shall give the Disclosing Party, to the extent legally permitted and reasonably
practicable, prompt prior notice of such disclosure and an opportunity to contest such disclosure and shall use commercially reasonable efforts to cooperate, at the expense of the Receiving Party, in seeking any reasonable protective arrangements
requested by the Disclosing Party. In the event that such appropriate protective order or other remedy is not obtained, the Receiving Party may furnish, or cause to be furnished, only that portion of such Confidential Information that the Receiving
Party is advised by legal counsel is legally required to be disclosed and shall take commercially reasonable steps to ensure that confidential treatment is accorded such Confidential Information. 

e. Ownership of Information. Except as otherwise provided in this Agreement, all Confidential Information provided by or on behalf of a
Party (or its Affiliates) that is provided to the other Party or its Personnel shall remain the property of the disclosing entity and nothing herein shall be construed as granting or conferring rights of license or otherwise in any such Confidential
Information. 
 f. Confidential Personal Information. “Confidential Personal Information” means all information
about Members, including Program Data, Transaction Information and names, addresses, all contact information, customer lists, and demographic or financial information. The exceptions set forth in Section 11.c shall not apply to Confidential
Personal Information; provided that, the restrictions on Confidential Personal Information do not apply to information independently developed or obtained without the use of Confidential Personal Information. Receiving Party may use and disclose
Confidential Personal Information only as permitted in this Agreement. Receiving Party is liable for all unauthorized disclosures and use of Confidential Personal Information by its Affiliates and Personnel. Receiving Party will notify Disclosing
Party promptly upon the discovery of the loss, unauthorized disclosure, or unauthorized use of Confidential Personal Information. All Confidential Personal Information 

  
 12 

 
constitutes Confidential Information, however, the terms of this Section govern the Receiving Party’s use of any Confidential Personal Information. The Receiving Party will permit the
Disclosing Party to audit its compliance with this Section 11.f at any time during regular business hours. 
 g. Data Security.
Each Party will establish, maintain and implement an information security program, including appropriate administrative, technical and physical safeguards, that is designed to (i) ensure the security and confidentiality of Confidential
Information, (ii) protect against any reasonably anticipated threats or hazards to the security or integrity of such Confidential Information, (iii) protect against unauthorized access to or use of such Confidential Information that could
result in substantial harm or inconvenience, and (iv) ensure the proper disposal of such Confidential Information. LE shall provide security for all data and communication systems in support of this Agreement at a minimum as specified in
Exhibit 5 (Information Security). Each Party will use the same degree of care in protecting the Confidential Information of the other Party against unauthorized disclosure as it accords to its own confidential information of a similar nature,
but in no event less than a reasonable standard of care. 
 12. Termination. Neither Party may exercise its rights in this Section 12 if the
Party has failed to comply with any of its material obligations in this Agreement and the failure is continuing. 
 a. General. 

i. Subject to the next sentence, LE or SHMC may terminate this Agreement in the event of a material breach of this Agreement by the other
Party if the breach is curable by the breaching Party and the breaching Party fails to cure the breach within 30 days following its receipt of written notice of the breach from the non-breaching Party. If the breach is not curable by the breaching
Party, the non-breaching Party may immediately terminate this Agreement following the non-breaching Party’s delivery of notice to the breaching Party (whichever Party is entitled to terminate, the “Terminating Party”). 

ii. SHMC may terminate this Agreement for cause if LE fails to agree to a Complying Change made in accordance with Section 3 on or before
the tenth day following LE’s receipt of notice of the Complying Change. 
 iii. SHMC may terminate this Agreement if a Stockholding
Change occurs. 
 b. Obligations at Termination or Expiration. Upon the termination of this Agreement in accordance with
Section 12.a or upon the expiration of this Agreement: 
 i. Each Party will perform, and reasonably assist the other Party in the
performance of, all existing contractual obligations to Members; 
 ii. Each Party will promptly pay all undisputed amounts owed to the
other; 
 iii. Each Party will cease use of the other party’s trade names, trademarks, and service marks, and will immediately cease
use of, and destroy (or if requested return), all of the other party’s Confidential Information in accordance with Section 11.b.3; and 

iv. All rights granted to LE in this Agreement will immediately terminate except to the extent necessary to enable LE to fulfill its
obligations to Members with respect to 

  
 13 

 
Program-Eligible Purchases. LE will provide a mutually-agreeable notice to its customers that they may no longer earn or redeem Points in connection with purchases of merchandise and services
from LE after the date of termination. 
 13. Books and Records; Audits. Each Party will keep and maintain books and records that accurately
reflect its operations according to industry standards, generally accepted accounting practices, and all applicable terms of this Agreement (the “Books and Records”). Each Party (the “Auditing Party”) will be
permitted once each calendar year to audit the other Party’s premises, Books and Records, and methods of operation in order to determine the audited Party’s compliance with the terms of this Agreement. Audits may occur at any time during
normal business hours designated by the Auditing Party. At the Auditing Party’s sole option, audits may be conducted (i) by the Auditing Party, its third-party designee, or a combination of the two, and (ii) at any location or
locations reasonably specified by the Auditing Party. The audited Party will deliver copies of all Books and Records to a single audit location designated by the Auditing Party. The Auditing Party will bear the reasonable costs and expenses of each
audit. Each Party will retain its Books and Records for at least five years from the date of settlement of the last audit to which the Party was subject. 

14. Representations and Warranties; Covenants. 

a. Representations and Warranties of LE. To induce SHMC to permit LE to enroll in the Program, LE, on behalf of itself and its
Affiliates, makes the following representations and warranties to SHMC, and each and all of which will be deemed to be restated and remade on each day from the Effective Date and at all times thereafter during the Term except that the
representations and warranties in Section 14.a.vii are made solely as of the Effective Date: 
 i. LE (a) is a corporation duly
organized, validly existing, and in good standing under the laws of the State of its incorporation, (b) is duly licensed or qualified to do business as a corporation and is in good standing as a foreign corporation in all jurisdictions in which
the nature of the activities conducted or proposed to be conducted by it or the character of the assets owned or leased by it makes such licensing or qualification necessary to perform its obligations required in this Agreement except to the extent
that its non-compliance would not have a material adverse effect on LE’s ability to perform its obligations in this Agreement, and (c) has all necessary licenses, permits, consents, and approvals from or by, and has made all necessary
notices to, all governmental authorities having jurisdiction, to the extent required for LE to perform its obligations under this Agreement, except to the extent that the failure to obtain such licenses, permits, consents or approvals or to provide
such notices would not have a material adverse effect on LE’s ability to perform its obligations required in this Agreement. 
 ii. LE
has all necessary corporate power and authority to (a) execute and enter into this Agreement, and (b) perform the obligations required of LE under this Agreement and the other documents, instruments and agreements executed by LE pursuant
hereto. The execution and delivery by LE of this Agreement and all documents, instruments and agreements executed and delivered by LE pursuant hereto, and the consummation by LE of the transactions specified herein have been duly and validly
authorized and approved by all necessary corporate action of LE. This Agreement (a) has been duly executed and delivered by LE, (b) constitutes the valid and legally binding obligation of LE, and (c) is enforceable in accordance with
its terms. 

  
 14 

 iii. The execution, delivery, and performance of this Agreement by LE, its compliance with the
terms hereof, and its consummation of the transactions specified herein will not (a) conflict with, violate, result in the breach of, constitute an event which would, or with the lapse of time or action by a third party or both would, result in
a default under, or accelerate the performance required by, the terms of any material contract, instrument or agreement to which LE is a party or by which it is bound, or by which LE assets are bound, except for conflicts, breaches and defaults
which would not have a material and adverse effect upon LE’s ability to perform its obligations under this Agreement, (b) conflict with or violate the articles of incorporation or by-laws, or any other equivalent organizational document of
LE, (c) violate any Applicable Law, or conflict with or require any consent or approval under any judgment, order, writ, decree, permit or license, to which LE is a party or by which it is bound or affected, except to the extent that such
violation or the failure to obtain such consent or approval would not have a material and adverse effect upon LE’s ability to perform its obligations under this Agreement, (d) require the consent or approval of any other party to any
contract, instrument or commitment to which LE is a party or by which it is bound, which consent or approval has not been obtained, except to the extent that the failure to obtain such consent or approval would not have a material adverse effect
upon LE’s ability to perform its obligations under this Agreement, or (e) require any filing with, notice to, consent or approval of, or any other action to be taken with respect to, any regulatory authority, except to the extent that the
failure to obtain such consent or approval would not have a material adverse effect upon LE, the Program or LE’s ability to perform its obligations under this Agreement. 

iv. Neither LE nor any of its Affiliates is in default with respect to any contract, agreement, lease, or other instrument to which it is a
party or by which it is bound, except for defaults which would not have a material and adverse effect upon LE’s ability to perform its obligations under this Agreement, nor has LE received any notice of default under any contract, agreement,
lease or other instrument regarding a default which, if realized, would materially and adversely affect the performance by LE of its obligations under this Agreement. 

v. All of LE’s Books and Records and the Books and Records of its Affiliates are in all material respects complete and correct and are
maintained in accordance with Applicable Law, except to the extent that the failure to so maintain such Books and Records would not have a material and adverse effect upon LE’s ability to perform its obligations under this Agreement. 

vi. No action, claim or any litigation, proceeding, arbitration, investigation or controversy is pending or, to the best of LE’s
knowledge, threatened against LE or any of its Affiliates, at law, in equity, or otherwise, which, if adversely determined, could have a material and adverse effect on LE’s ability to perform its obligations under this Agreement. 

vii. LE or its Affiliates are the owners of the intellectual property licensed by LE herein, including the LE Marks (together, the “LE
IP”) and LE has the right, power, and authority to license to SHMC and authorized designees the use of the LE IP, and such use by such licensees in a manner approved (or deemed approved) by LE will not (a) violate any Applicable Law or
(b) infringe upon the rights of any third party, in either case to the extent that the infringement would have a material and adverse effect upon the Program or LE’s ability to perform its obligations under this Agreement. 

viii. All data related to Program-Eligible Purchases, the Transaction Information, and product returns, exchanges, and similar information
transmitted or sent by LE to SHMC for purposes of issuing to or redeeming Points of LE’s Members is accurate, and the result of bona fide purchases or returns, free from fraud and misrepresentations. 

  
 15 

 b. Representations of SHMC. To induce LE to enter into this Agreement and participate in
the Program, SHMC, on behalf of itself and its Affiliates, makes the following representations and warranties to LE and each and all of which will be deemed to be restated and remade on each day from the Effective Date, and at all times thereafter
during the Term except that the representations and warranties in Section 14.b.vii are made solely as of the Effective Date: 
 i. SHMC
(a) is a corporation duly organized, validly existing, and in good standing under the laws of the State of its incorporation, (b) is duly licensed or qualified to do business and is in good standing as a foreign corporation in all
jurisdictions in which the nature of the activities conducted or proposed to be conducted by it or the character of the assets owned or leased by it makes such licensing or qualification necessary to perform its obligations in this Agreement except
to the extent that its non-compliance would not have a material and adverse effect on SHMC or the Program or SHMC’s ability to perform its obligations in this Agreement, and (c) has all necessary licenses, permits, consents, or approvals
from or by, and has made all necessary notices to, all governmental authorities having jurisdiction, to the extent required for SHMC to perform its obligations under this Agreement, except to the extent that the failure to obtain such licenses,
permits, consents, or approvals or to provide such notices would not have a material and adverse effect on SHMC, the Program or SHMC’s ability to perform its obligations under this Agreement. 

ii. SHMC has all necessary power and authority to (a) execute and enter into this Agreement, and (b) perform all of the obligations
required of SHMC under this Agreement and the other documents, instruments and agreements executed by SHMC pursuant hereto. The execution and delivery by SHMC of this Agreement and all documents, instruments and agreements executed and delivered by
SHMC pursuant hereto, and the consummation by SHMC of the transactions specified herein, have been duly and validly authorized and approved by all necessary corporate action of SHMC. This Agreement (a) has been duly executed and delivered by
SHMC, (b) constitutes the valid and legally binding obligation of SHMC, and (c) is enforceable in accordance with its terms. 

iii. The execution, delivery and performance of this Agreement by SHMC, its compliance with the terms hereof, and the consummation of the
transactions specified herein will not (a) conflict with, violate, result in the breach of, constitute an event which would, or with the lapse of time or action by a third party or both would, result in a default under, or accelerate the
performance required by, the terms of any material contract, instrument or agreement to which SHMC is a party or by which it is bound, except for conflicts, breaches and defaults which would not have a material and adverse effect upon SHMC or the
Program or SHMC’s ability to perform its obligations under this Agreement, (b) conflict with or violate the articles of incorporation or by-laws, or any other equivalent organizational document(s) of SHMC, (c) violate any Applicable
Law, or conflict with or require any consent or approval under any judgment, order, writ, decree, permit or license, to which SHMC is a party or by which it is bound or affected, except to the extent that such violation or the failure to obtain such
consent or 

  
 16 

 
approval would not have a material and adverse effect upon SHMC or the Program or SHMC’s ability to perform its obligations under this Agreement, (d) require the consent or approval of
any other party to any contract, instrument or commitment to which SHMC is a party or by which it is bound, which consent or approval has not been obtained, except to the extent that the failure to obtain such consent or approval would not have a
material and adverse effect upon SHMC’s ability to perform its obligations under this Agreement, or (e) require any filing with, notice to, consent or approval of, or any other action to be taken with respect to, any regulatory authority.

 iv. Neither SHMC nor any of its Affiliates is in default with respect to any contract, agreement, lease, or other instrument to which it
is a party or by which it is bound, except for defaults which would not have a material and adverse effect upon SHMC or the Program or SHMC’s ability to perform its obligations under this Agreement, nor has SHMC received any notice of default
under any such contract, agreement, lease or other instrument regarding a default which, if realized, would materially and adversely affect the performance by SHMC of its obligations under this Agreement. 

v. All of SHMC’s Books and Records and the Books and Records of its Affiliates are in all material respects complete and correct and are
maintained in accordance with Applicable Law, except to the extent that the failure to so maintain such Books and Records would not have a material and adverse effect upon the Program or SHMC’s ability to perform its obligations under this
Agreement. 
 vi. No action, claim, or any litigation, proceeding, arbitration, investigation or controversy is pending or, to the best of
SHMC’s knowledge, threatened against SHMC or its Affiliates, at law, in equity or otherwise, which, if adversely determined, could have a material and adverse effect on SHMC’s ability to perform its obligations under this Agreement. 

vii. SHMC or its Affiliates are the owners of the intellectual property licensed by SHMC herein, including the SHMC Marks (together, the
“SHMC IP”) and SHMC has the right, power, and authority to license to LE and authorized designees the use of the SHMC IP, and such use by such licensees in a manner approved (or deemed approved) by SHMC will not (a) violate any
Applicable Law or (b) infringe upon the rights of any third party, in either case to the extent the infringement would have a material and adverse effect upon the Program or SHMC’s ability to perform its obligations under this Agreement.

 viii. The Member Analytics Reports are accurate and free from fraud or misrepresentation. 

c. Covenants of LE. LE makes the following covenants to SHMC, each and all of which will survive the execution and delivery of this
Agreement until its termination. 
 i. LE promptly will notify SHMC if it receives written notice of any litigation that, if adversely
determined, would have a material and adverse effect on the Program or LE’s ability to perform its obligations in this Agreement. 

ii. Except as otherwise specified herein, LE will enforce its rights against third parties to the extent that a failure to enforce such rights
could reasonably be expected to materially and adversely affect the Program or LE’s ability to perform its obligations in this Agreement. LE will not enter into any agreement which, at the time such agreement is executed, could reasonably be
expected to have a material and adverse effect on the Program. 

  
 17 

 iii. LE will at all times during the Term comply in all material respects with Applicable Law
applicable to its activities except to the extent that such non-compliance would not have a material adverse effect on the Program. 
 iv.
LE will perform all of its obligations in this Agreement competently and in Good Faith, in a professional and commercially reasonable manner, in accordance with generally accepted industry standards. 

v. LE will, to the extent necessary, cause its Affiliates to comply with the terms of this Agreement. 

d. Covenants of SHMC. SHMC makes the following covenants to LE, each and all of which will survive the execution and delivery of this
Agreement until its termination. 
 i. SHMC promptly will notify LE if it receives written notice of any litigation that, if adversely
determined, would have a material and adverse effect on the Program or SHMC’s ability to perform its obligations hereunder. 
 ii.
Except as otherwise specified herein, SHMC will enforce its rights against third parties to the extent that a failure to enforce such rights could reasonably be expected to materially and adversely affect the Program or SHMC’s ability to
perform its obligations hereunder. SHMC will not enter into any agreement which, at the time such agreement is executed, could reasonably be expected to have a material and adverse effect on the Program or SHMC’s ability to perform its
obligations hereunder. 
 iii. SHMC will at all times during the Term comply in all material respects with Applicable Law applicable to its
activities except to the extent that such non-compliance would not have a material adverse effect on the Program. 
 iv. SHMC will perform
all of its obligations hereunder competently and in Good Faith, in a professional and commercially reasonable manner, in accordance with generally accepted industry standards. 

v. SHMC will, to the extent necessary, cause its Affiliates to comply with the terms of this Agreement. 

e. Disclaimer. EXCEPT AS EXPRESSLY SET FORTH IN THIS AGREEMENT, NEITHER PARTY MAKES ANY OTHER GUARANTEE, REPRESENTATION, OR WARRANTY OF
ANY KIND (WHETHER EXPRESS OR IMPLIED) REGARDING ANY OF THE SERVICES PROVIDED HEREUNDER, AND EXPRESSLY DISCLAIMS ALL OTHER GUARANTEES, REPRESENTATIONS, AND WARRANTIES OF ANY NATURE WHATSOEVER, WHETHER STATUTORY, ORAL, WRITTEN, EXPRESS OR IMPLIED,
INCLUDING ANY WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE AND ANY WARRANTIES ARISING FROM COURSE OF DEALING OR USAGE OF TRADE. 
 15.
Indemnification. 
 a. LE Indemnification of SHMC. From and after the Effective Date, LE will defend, indemnify and hold
harmless SHMC, its Affiliates, their respective officers, directors, employees, agents and representatives and any Person claiming by or through any of them (collectively, the “SHMC Indemnified Parties”) from and against and in
respect of any and all 

  
 18 

 
losses, liabilities, damages, costs and expenses of whatever nature, including reasonable attorneys’ fees and expenses and all other costs and expenses of defense (collectively,
“Losses”) relating to third-party claims that are caused or incurred by, result from, arise out of, or relate to: 
 i.
LE’s negligence, recklessness or willful misconduct (including acts and omissions) relating to the Program; 
 ii. Breaches and
defaults by LE or any of its Affiliates, or their respective officers, directors, employees or agents of any of the terms, conditions, covenants, representations, or warranties contained in this Agreement; 

iii. Acts and omissions by SHMC taken or not taken at LE’s request or direction pursuant to this Agreement except where SHMC would have
been otherwise required to take such action (or refrain from acting) absent the request or direction of LE or where such request or direction is required by this Agreement prior to the action or inaction of SHMC; 

iv. Fraudulent acts by LE, its Affiliates, or their respective officers, directors employees or agents; 

v. Allegations by a third party that the use of the LE IP or any materials or documents provided by LE constitutes (a) libel, slander, or
defamation, (b) unfair competition or misappropriation of another’s ideas or trade secret, (c) invasion of rights of privacy or rights of publicity, or (d) breach of contract or tortious interference; 

vi. Allegations by a third party that the use of the LE IP or any materials or documents provided by LE other than at SHMC’s direction
constitutes infringement of intellectual property, including trademark infringement or dilution, or copyright infringement. 
 b.
SHMC’s Indemnification of LE. From and after the Effective Date, SHMC will defend, indemnify and hold harmless LE, its Affiliates, their respective officers, directors, employees, agents and representatives and any Person claiming by or
through any of them (collectively, the “LE Indemnified Parties”) from and against and in respect of any and all Losses relating to third-party claims, which are caused or incurred by, result from, arise out of or relate to: 

i. SHMC’s negligence, recklessness or willful misconduct (including acts and omissions) relating to the Program; 

ii. Breaches and defaults by SHMC or any of its Affiliates, or their respective officers, directors, employees or agents of any of the terms,
conditions, covenants, representations, or warranties contained in this Agreement; 
 iii. SHMC’s failure to satisfy any of its
obligations or liabilities to Members; 
 iv. Acts and omissions by LE taken or not taken at SHMC’s request or direction pursuant to
this Agreement except where LE would have been otherwise required to take such action (or refrain from acting) absent the request or direction of SHMC or where such request or direction is required by this Agreement prior to the action or inaction
of LE; 
 v. Fraudulent acts by SHMC, its Affiliates or their respective officers, directors employees or agents; 

  
 19 

 vi. Allegations by a third party that the use of the SHMC IP or any materials or documents
provided by SHMC constitutes (a) libel, slander, or defamation, (b) unfair competition or misappropriation of another’s ideas or trade secret, (c) invasion of rights of privacy or rights of publicity, or (d) breach of
contract or tortious interference; 
 vii. Allegations by a third party that the use of the SHMC IP or any materials or documents provided
by SHMC other than at LE’s direction constitutes infringement of intellectual property, including trademark infringement or dilution, or copyright infringement. 

c. Procedures. In case any claim is made, or any suit or action is commenced, against an SHMC Indemnified Party or an LE Indemnified
Party, the Party in respect of which indemnification may be sought under this Section 15 (including for the benefit of its officers, directors, employees, agents or representatives or any Person claiming by or through any of them) (the
“Indemnified Party”) will promptly give the other party (the “Indemnifying Party”) notice thereof and the Indemnifying Party will be entitled to participate in the defense thereof and, with prior notice to the
Indemnified Party given not later than twenty (20) days after the delivery of the applicable notice, to assume, at the Indemnifying Party’s expense, the defense thereof, with counsel reasonably satisfactory to such Indemnified Party. After
notice from the Indemnifying Party to such Indemnified Party of its election so to assume the defense thereof, the Indemnifying Party will not be liable to such Indemnified Party under this Section for any attorneys’ fees or other expenses
subsequently incurred by such Indemnified Party in connection with the defense thereof other than reasonable costs of investigation. 
 i.
The Indemnified Party will have the right to employ its own counsel if the Indemnifying Party elects to assume such defense, but the fees and expenses of such counsel will be at the Indemnified Party’s expense, unless (a) the employment of
such counsel has been authorized in writing by the Indemnifying Party, (b) the Indemnifying Party has not employed counsel to take charge of the defense within twenty (20) days after delivery of the applicable notice or, having elected to
assume such defense, thereafter ceases its defense of such action, or (c) the Indemnified Party has reasonably concluded that there may be defenses available to it which are different from or additional to those available to the Indemnifying
Party (in which case the Indemnifying Party will not have the right to direct the defense of such action on behalf of the Indemnified Party), in any of which event attorneys’ fees and expenses will be borne by the Indemnifying Party. 

ii. The Indemnifying Party will promptly notify the Indemnified Party if the Indemnifying Party desires not to assume, or participate in the
defense of, any such claim, suit or action, but such notice will not affect in any way the obligation of the Indemnifying Party in accordance with this Section 15 to indemnify and hold harmless the Indemnified Party against Losses consisting of
reasonable attorneys’ fees and expenses and all other costs and expenses of defense. 
 iii. The Indemnified Party or Indemnifying
Party may at any time notify the other of its intention to settle or compromise any claim, suit or action against the Indemnified Party in respect of which payments may be sought by the Indemnified Party in this Agreement, and the Indemnifying Party
may settle or compromise any such claim, suit or action solely for the payment of money damages, but will not agree to any other settlement or compromise without the prior consent of the Indemnified Party, which consent will not be unreasonably
withheld or delayed. 

  
 20 

 d. Notice and Additional Rights and Limitations. 

i. If an Indemnified Party fails to give prompt notice of any claim being made or any suit or action being commenced in respect of which
indemnification under this Section 15 may be sought, such failure will not limit the liability of the Indemnifying Party unless the failure to give such notice has a detrimental effect on the Indemnifying Party. The preceding sentence will not limit
the Indemnifying Party’s rights to recover for any loss, cost or expense which it can establish resulted from any failure to give prompt notice. 

ii. This Section 15 will govern the obligations of the Parties with respect to the subject matter hereof but will not be deemed to limit
the rights which any Party might otherwise have at law or in equity. 
 16. Exclusion of Consequential Damages; Limitation of Liability. EXCEPT FOR
(I) EACH PARTY’S INDEMNITY AND DEFENSE OBLIGATIONS AND OTHER LIABILITIES TO UNAFFILIATED THIRD PARTIES, (II) A PARTY’S BREACH OF ITS CONFIDENTIALITY OBLIGATIONS, AND (III) BREACH OF SECTION 10 (DATA OWNERSHIP), IN NO EVENT WILL
EITHER PARTY, NOR ITS AFFILIATES, CONTRACTORS OR AGENTS BE LIABLE FOR ANY CONSEQUENTIAL, INCIDENTAL, INDIRECT, SPECIAL, OR PUNITIVE DAMAGES, LOSSES OR EXPENSES (INCLUDING BUSINESS INTERRUPTION, LOST BUSINESS, LOST PROFITS, LOST DATA, OR LOST
SAVINGS, DAMAGES TO SOFTWARE OR FIRMWARE, OR COST OF PROCURING OR TRANSITIONING TO SUBSTITUTE SERVICES), REGARDLESS OF THE LEGAL THEORY UNDER WHICH SUCH LIABILITY IS ASSERTED, AND REGARDLESS OF WHETHER A PARTY HAD BEEN ADVISED OF THE POSSIBILITY OF
SUCH LIABILITY. EXCEPT FOR (I) EACH PARTY’S INDEMNITY AND DEFENSE OBLIGATIONS AND OTHER LIABILITIES TO UNAFFILIATED THIRD PARTIES, (II) A PARTY’S BREACH OF ITS CONFIDENTIALITY OBLIGATIONS, (III) BREACH OF SECTION 10 (DATA
OWNERSHIP) AND (IV) FEES, EXPENSES OR OTHER PAYMENTS SPECIFICALLY PROVIDED FOR UNDER THE TERMS OF THIS AGREEMENT, THE SOLE LIABILITY OF EITHER PARTY AND ITS AFFILIATES FOR ALL CLAIMS IN ANY MANNER RELATED TO THIS AGREEMENT ARE LIMITED TO THE PAYMENT
OF DIRECT DAMAGES, NOT TO EXCEED (FOR ALL CLAIMS IN THE AGGREGATE) THE FEES PAID TO SHMC UNDER THIS AGREEMENT DURING THE SIX (6) MONTHS PRIOR TO THE DATE SUCH CLAIM AROSE. 

17. Miscellaneous. 
 a. Force
Majeure. Neither Party will be responsible to the other for any delay in or failure of performance of its obligations under this Agreement, to the extent such delay or failure is attributable to any act of God, act of terrorism, fire, accident,
war, embargo or other governmental act, or riot; provided, however, that the Party affected thereby gives the other Party prompt written notice of the occurrence of any event which is likely to cause (or has caused) any delay or failure setting
forth its best estimate of the length of any delay and any possibility that it will be unable to resume performance; provided, further, that said affected Party will use its commercially reasonable efforts to expeditiously overcome the effects of
that event and resume performance. 

  
 21 

 b. Notice. All notices, requests, demands, waivers and other communications required or
permitted to be given under this Agreement must be in writing and will be deemed to have been duly given (i) when delivered by hand, (ii) three (3) Business Days after it is mailed, certified or registered mail, return receipt
requested, with postage prepaid, (iii) on the same Business Day when sent by facsimile or electronic mail (return receipt requested) if the transmission is completed before 5:00 p.m. recipient’s time, or one (1) Business Day after the
facsimile or email is sent, if the transmission is completed on or after 5:00 p.m. recipient’s time or (iv) one (1) Business Day after it is sent by Express Mail, Federal Express or other courier service specifying same day or next
day delivery, as follows (or at such other address for a Party as shall be specified in a notice given in accordance with this Section 17.b): 
  

			
	If to SHMC, to:	  	Sears Holdings Management Corporation
		
		  	3333 Beverly Road
		
		  	Hoffman Estates, Illinois 60179
		
		  	Attn.: Eric Jaffe
		
		  	Facsimile: (847) 286-3489
		
		  	Email: ejaffe@searshc.com
		
	With a Copy To:	  	
		
		  	Sears Holdings Corporation
		
		  	3333 Beverly Road
		
		  	Hoffman Estates, Illinois 60179
		
		  	Attn.: General Counsel
		
		  	Facsimile: (847) 286-2471
		
		  	Email: Dane.Drobny@searshc.com
		
	If to LE, to:	  	
		
		  	Lands’ End, Inc.
		
		  	5 Lands’ End Lane
		
		  	Dodgeville, Wisconsin 53595
		
		  	Attn.: VP, Multi-Channel Marketing
		
		  	Facsimile: (608) 935-6884
		
		  	Email: mike.holahan@landsend.com
		
	With a Copy To:	  	
		
		  	Lands’ End
		
		  	5 Lands’ End Lane
		
		  	Dodgeville, Wisconsin 53595
		
		  	Attn.: General Counsel
		
		  	Facsimile: 608-935-6550
		
		  	Email: Karl.Dahlen@landsend.com

  
 22 

 c. No Agency. Nothing in this Agreement creates a relationship of agency, partnership, or
employer/employee between SHMC and LE and it is the intent and desire of the Parties that the relationship be and be construed as that of independent contracting parties and not as agents, partners, joint venturers or a relationship of
employer/employee. 
 d. Expenses. In addition to the fees stated herein, unless otherwise expressly stated herein, LE will reimburse
SHMC for all other reasonable out-of-pocket expenses actually incurred in its performance of its obligations hereunder (“Expenses”). To the extent reasonably practicable, SHMC will provide LE with notice of such Expenses prior to
incurring them. If directed by SHMC, LE will pay directly any or all third-party contractors providing Services to or for the benefit of LE. The cost of all third-party Personnel used to perform the Services hereunder will be reimbursed by LE on a
cost plus five percent (5%) basis. Except as otherwise provided for in this Agreement, each Party will bear its own expenses with respect to the transactions contemplated by this Agreement. 

e. No Third Party Rights. Except for the indemnification rights under this Agreement of any SHMC or LE indemnitee in their respective
capacities as such, this Agreement is intended to be solely for the benefit of the Parties and is not intended to confer any benefits upon, or create any rights in favor of, any person other than the Parties. 

f. Severability. If any provision of this Agreement is declared by any court of competent jurisdiction to be illegal, invalid, void or
unenforceable, such provision will (to the extent permitted under Applicable Law) be construed by modifying or limiting it so as to be legal, valid and enforceable to the maximum extent compatible with Applicable Law, and all other provisions of
this Agreement will not be affected and will remain in full force and effect. 
 g. Amendment; No Waiver. The terms, covenants and
conditions of this Agreement may be amended, modified or waived only by a written instrument signed by both Parties, or in the event of a waiver, by the Party waiving such compliance. Any Party’s failure at any time to require performance of
any provision will not affect that Party’s right to enforce that or any other provision at a later date. No waiver of any condition or breach of any provision, term or covenant contained in this Agreement, whether by conduct or otherwise, in
any one or more instances will be deemed to be or construed as a further or continuing waiver of that or any other condition or of the breach of that or another provision, term or covenant of this Agreement. 

h. Third Party Agreements. The Parties anticipate that SHMC will be relying upon its and its Affiliates existing agreements with third
parties to provide certain of the Services described herein (“Third Party Agreements”) and that the Parties have assumed that SHMC’s and/or its Affiliates’ counterparty under each such Third Party Agreement (the
“Third Party Vendor”) will permit SHMC and/or its Affiliates to procure goods, services and/or license software, as applicable under such Third Party Agreement, on behalf of LE, at no additional cost, as if LE were an affiliate of
SHMC and/or its Affiliates under such Third Party Agreement. If: (i) SHMC’s or its Affiliates’ costs, fees, or expenses increase under the terms of such Third Party Agreements, or (ii) the Third Party Vendor demands or is
entitled to additional costs, fees, or expenses now or in the future, as a result of LE receiving benefits under such Agreement, then, in addition to all other amounts due hereunder, LE shall be liable for its proportionate share of all

  
 23 

 
increased amounts under subsection (i) and all of the increased amounts under subjection (ii), in each case as such amounts are determined by SHMC in Good Faith. SHMC will notify LE once it
learns of any increased amounts due under the immediately foregoing sentence, and will work with the Third Party Vendor to try to mitigate such cost increase. To the extent any such Third Party Agreement includes early termination fees (or similar
charges, “Termination Fees”), LE will be solely responsible for any such Termination Fees SHMC or its Affiliates incur as a result of the Separation of LE and/or LE ceasing to use the Services under this Agreement 

i. Computer Access. If either Party, its Affiliates or its Personnel are given access, whether on-site or through remote facilities, to
any communications, computer, or electronic data storage systems of the other Party, its Affiliates or its Personnel (each an “Electronic Resource”), in connection with this Agreement, then the Party on behalf of whom such access is
given will ensure that its Personnel’s use of such access shall be solely limited to performance or exercise of, such Party’s duties and rights under this Agreement, and that such Personnel will not attempt to access any Electronic
Resource other than those specifically required for the performance of such duties and/or exercise of such rights. The Party given access will limit such access to those of its and its Affiliates’ Personnel who need to have such access in
connection with this Agreement, will advise the other Party in writing of the name of each of such Personnel who will be granted such access, and will strictly follow all security rules and procedures for use of such Electronic Resources. All user
identification numbers and passwords disclosed to a Party’s Personnel and any information obtained by such Party’s Personnel as a result of its access to, and use of the other Party’s, its Affiliates’ or its Personnel’s
Electronic Resources will be deemed to be, and will be treated as, Confidential Information of the Party on behalf of whom such access is granted. Each Party will reasonably cooperate with the other Party in the investigation of any apparent
unauthorized access by the other Party, its Affiliates, or its Personnel to any Electronic Resources or unauthorized release of Confidential Information. Each Party will promptly notify the other Party of any actual or suspected unauthorized access
or disclosure of any Electronic Resource of the other Party, its Affiliates, or its Personnel. 
 j. Equitable Relief. Each Party
acknowledges that any breach by a Party of this Agreement, including, without limitation, Section 10 (Data Ownership) and Section 11 (Confidential Information), may cause the non-breaching Party and its Affiliates irreparable harm for
which the non-breaching Party and its Affiliates have no adequate remedies at law. Accordingly, in the event of any actual or threatened default in, or breach of the foregoing provisions, each Party and its Affiliates are entitled to seek
equitable relief, including specific performance, and injunctive relief; in addition to any and all other rights and remedies at law or in equity, and all such rights and remedies shall be cumulative. A Party seeking such equitable relief is not
obligated to comply with Section 17.u.i (Dispute Resolution) and may seek such relief regardless of any cure rights for such actual or threatened breach. Each Party waives all claims for damages by reason of the wrongful issuance of an
injunction and acknowledges that its only remedy in that case is the dissolution of that injunction. Any requirements for the securing or posting of any bond with such remedy are waived. 

k. Construction and Interpretation. In this Agreement (1) “include,” “includes,” and
“including” are inclusive and mean, respectively, “include without limitation,” “includes without limitation,” and “including without limitation,” (2) “or” is disjunctive but not
necessarily exclusive, (3) “will” and “shall” expresses an imperative, an obligation, and a requirement, (4) numbered “Section” references refer to sections of this Agreement unless
otherwise specified, 

  
 24 

 
(5) section headings are for convenience only and will have no interpretive value, (6) unless otherwise indicated all references to a number of days mean calendar (and not business)
days and all references to months or years mean calendar months or years, (7) references to $ or Dollars mean U.S. Dollars, and (8) hereof,” “herein” and “herewith” and words of similar import, unless
otherwise stated, shall be construed to refer to this Agreement as a whole and not to any particular provision of this Agreement. 
 l.
Publicity. All publicity regarding this Agreement is subject to Section 14.5 (Public Announcements) of the Separation Agreement. 

m. Further Assurances. Each of SHMC and LE will produce or execute such other documents or agreements as may be necessary or desirable
for the execution and implementation of this Agreement and the consummation of the transactions specified herein and to take all such further action as the other Party may reasonably request in order to give evidence to the consummation of the
transactions specified herein. 
 n. Survival. Each term of this Agreement that would, by its nature, survive the termination or
expiration of this Agreement will so survive, including the obligation of either Party to pay all amounts accrued hereunder and Section 10 (Data Ownership, Sharing and Use), Section 11 (Confidentiality), Section 13 (Books and
Records), Section 15 (Indemnification), Section 16 (Exclusion of Consequential Damages; Limitation of Liability), and Section 17. (Governing Law, Jurisdiction; Waiver of Jury Trial). 

o. Entire Agreement. This Agreement (including the Exhibits, Articles and Schedules hereto) constitutes the entire agreement between
the Parties hereto and supersedes all prior agreements and understandings, oral and written, between the Parties hereto with respect to the subject matter hereof. 

p. Assignment. LE may not assign its rights or obligations under this Agreement without the prior written consent of SHMC, which
consent may be withheld in SHMC’s absolute discretion. A Stockholding Change will constitute an assignment of this Agreement by LE for which assignment SHMC’s prior written consent will be required. SHMC may freely assign its rights and
obligations under this Agreement without the prior consent of LE. This Agreement will be binding on, and will inure to the benefit of, the permitted successors and assigns of the Parties. 

q. Counterparts. This Agreement may be executed and delivered (including by facsimile or other electronic transmission (e.g., .pdf
file) in counterparts, and by the Parties in separate counterparts, each of which when executed shall be deemed to be an original, but all of which taken together shall constitute one and the same agreement. 

r. Condition Precedent to the Effectiveness of this Agreement. This Agreement will not be binding on either Party unless and until it
has been approved by the Audit Committee of the Board of Directors of SHLD (or a subcommittee thereof, including the Related Party Transactions Subcommittee). 

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

  
 25 

 t. Dispute Resolution; Governing Law; Jurisdiction; Waiver of Jury Trial. 

i. Dispute Resolution. Except as provided for in Section 17.j (Equitable Relief), all Disputes related to this Agreement are
subject to Article XI (Dispute Resolution) of the Separation Agreement. 
 ii. Governing Law. This Agreement (and all claims,
controversies or causes of action, whether in contract, tort or otherwise, that may be based upon, arise out of or relate to this Agreement or the negotiation, execution, termination, performance or nonperformance of this Agreement (including any
claim, controversy or cause of action based upon, arising out of or relating to any representation or warranty made in or in connection with this Agreement or as an inducement to enter into this Agreement)) shall be governed by, and construed and
enforced in accordance with, the federal laws of the United States, including the Lanham Act, and the internal laws of the State of Illinois, without regard to any choice or conflict of law provision or rule (whether of the State of Illinois or any
other jurisdiction) that would cause the application of the laws of any jurisdiction other than the State of Illinois. This Agreement will not be subject to any of the provisions of the United Nations Convention on Contracts for the International
Sale of Goods. 
 iii. Jurisdiction. Each of the Parties hereto irrevocably agrees that all proceedings arising out of or relating to
this Agreement and the rights and obligations arising hereunder, or for recognition and enforcement of any judgment in respect of this Agreement and the rights and obligations arising hereunder brought by the other Party hereto or its successors or
assigns shall be brought, heard and determined exclusively in any federal or state court sitting in Cook County, Illinois. Consistent with the preceding sentence, each of the Parties hereto hereby (a) submits to the exclusive jurisdiction of
any federal or state court sitting in Cook County, Illinois for the purpose of any proceeding arising out of or relating to this Agreement or the rights and obligations arising hereunder brought by any Party hereto and (b) irrevocably waives,
and agrees not to assert by way of motion, defense, counterclaim, or otherwise, in any such proceeding, any claim that it or its property is not subject personally to the jurisdiction of the above-named courts, that the proceeding is brought in an
inconvenient forum, that the venue of the proceeding is improper, or that this Agreement or any of the other transactions contemplated by this Agreement may not be enforced in or by any of the above-named courts. Each Party agrees that service of
process upon such party in any such action or Proceeding shall be effective if notice is given in accordance with Section 17.b. 
 iv.
Waiver of Jury Trial. EACH OF THE PARTIES HERETO HEREBY WAIVES TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY WITH RESPECT TO ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN
CONNECTION WITH THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT. EACH OF THE PARTIES HERETO HEREBY (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF THE OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH
OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT, AS APPLICABLE, BY, AMONG
OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 17.T.IV. 

  
 26 

 Acknowledged and agreed: 
  

									
	Sears Holdings Management Corporation	 		 	Lands’ End, Inc.
					
	By:	 	 /s/ D. Michael Anderson
	 		 	By:	 	 /s/ Edgar O. Huber

		 	D. Michael Anderson	 		 		 	Edgar O. Huber
		 	VP, Loyalty Marketing	 		 		 	Chief Executive Officer

  
 27 

 Exhibit 1 

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

“Additional Points” mean Points that are awarded in addition to Base Points on Program-Eligible Purchases in connection with
specific offers, whether or not the Member is a Bonus Member and as may be further described in the Program Terms and Conditions. Additional Points include Bonus Points, but exclude Base Points and Surprise Points. 

“Affiliate” means (solely for purposes of this Agreement and for no other purpose) (i) with respect to LE, its
Subsidiaries, and (ii) with respect to SHMC, SHC and its Subsidiaries; provided, however, that except where the context indicates otherwise, for purposes of this Agreement, from and after the Effective Time (1) no SHC Entity
shall be deemed to be an Affiliate of any LE Entity and (2) no LE Entity shall be deemed to be an Affiliate of any SHC Entity. 

“Applicable Law” means all applicable common law, laws, ordinances, regulations, rules, and court and administrative orders
and decrees of all national, regional, state, local and other governmental units that have jurisdiction in the given circumstances. 

“Base Points” means the base points Members earn on Program-Eligible Purchases and as may be further described in the Program
Terms and Conditions. 
 “Bonus Members” are Members who maintain a valid email address in their Program profile and who
are opted-in to receiving promotional emails from the Program. 
 “Bonus Points” means Points that are awarded in addition
to Base Points on Program-Eligible Purchases in connection with specific offers for which only Bonus Members are eligible and as may be further described in the Program Terms and Conditions. 

“Business Day” means any day that is not a Saturday, a Sunday or any other day on which banks are required or authorized by
Applicable Law to be closed in New York, New York. 
 “Competitor” means each Person that operates a rewards or
points-issuance/redemption business that competes in any material respect with the Program or with any other rewards or points-issuance/redemption business operated by SHMC or any of its Affiliates. 

“Competitor Affiliates” means each Person that directly or indirectly and by whatever means controls, is under common control
with, or is controlled by, a Competitor. 
 “Good Faith” means honesty in fact and the observance of reasonable commercial
standards of fair dealing in accordance with Applicable Law. 
 “LE Entities” has the meaning ascribed to it in the
Separation Agreement. 
 “Person” means an individual, a sole proprietorship, a partnership, a joint venture, a limited
liability company, a corporation, and all other entities. 
 “Personnel” means the officers, directors, employees, agents,
suppliers, licensors, licensees, contractors, subcontractors, advisors (including attorneys, accountants, technical 

  
 28 

 
consultants or investment bankers) and other representatives, from time to time, of a Party and its Affiliates; provided that the Personnel of the LE Entities shall not be deemed Personnel
of the SHC Entities and the Personnel of the SHC Entities shall not be deemed Personnel of the LE Entities. 
 “SHC” means
Sears Holdings Corporation. 
 “SHC Entities” has the meaning ascribed to it in the Separation Agreement. 

“Stockholding Change” has the meaning ascribed to it in the Separation Agreement and also includes any change where a
Competitor or a Competitor Affiliate becomes, directly or indirectly, at any time after the date of this Agreement and by whatever means, the beneficial owner of more than 50% of the total voting power of LE’s outstanding securities entitled,
to vote in, or carrying the right to direct voting with respect to, directly or indirectly and by whatever means the election of LE’s board of directors. 

“Subsidiaries” has the meaning ascribed to it in the Separation Agreement. 

“Surprise Points” means Points of a short-term duration that may be awarded to specific Members to incentivize future
purchases on various levels (e.g., whole house, category, item) and as may be further described in the Program Terms and Conditions. 
 The following terms
are defined in the Agreement, as indicated: 
  

			
	 Term
	  	 Section

	Additional Points	  	Exhibit 1
	Additional Points Fees	  	Exhibit 2
	Affiliate	  	Exhibit 1
	Auditing Party	  	13
	Base Points	  	Exhibit 1
	Base Points Fees	  	Exhibit 2
	Bonus Points	  	Exhibit 1
	Books and Records	  	13
	Burn Rate	  	Exhibit 2
	Competitor	  	Exhibit 1
	Complying Change	  	3.b
	Confidential Information	  	11.a
	Confidential Personal Information	  	11.f
	Disclosing Party	  	11.a
	Effective Date	  	2
	Electronic Resource	  	17.i
	Expenses	  	17.d
	Good Faith	  	Exhibit 1
	Indemnified Party	  	15.c
	Indemnifying Party	  	15.c

  
 29 

			
	Inlet Stores	  	5.c
	Issuing Retailers	  	Recital A
	LE-Collected Program Data	  	10.a
	LE Format	  	Recital B
	LE Indemnified Parties	  	15.b
	LE IP	  	XV.A.7
	LE Mark	  	8.b
	LE Shop	  	Recital B
	LE-Shop Opt-in	  	10.c
	LE-Shop Opt-in Data	  	10.c
	Losses	  	15.a
	Marketplace Agreement	  	Recital B
	Member	  	Program Terms and Conditions
	Member Analytics Reports	  	7.a.ii
	Member Number	  	Program Terms and Conditions
	Participating Retailers	  	Recital A.
	Person	  	Exhibit 1
	Personal Shopper Program	  	7.a.iii
	Points	  	6.a
	Points Issuance Fee	  	Exhibit 2
	POS System	  	5.c
	Program	  	Recital A.
	Program Data	  	10.a
	Program-Eligible Purchases	  	Program Terms and Conditions
	Program-Related Marketing	  	7.a.ii
	Program Site	  	Recital A
	Program Terms and Conditions	  	Recital B
	Promotional Activities	  	4
	PS T&C	  	7.a.iii
	Purchase Points	  	Exhibit 2
	Rate Card	  	7.a.i
	Receiving Party	  	11.a
	Redeeming Retailers	  	Recital A
	Separation Agreement	  	2
	SHLD	  	2
	SHMC Indemnified Parties	  	15.a
	SHMC IP	  	14.b.vii
	SHMC Mark	  	8.a

  
 30 

			
	Stockholding Change	  	Exhibit 1
	Surprise Points	  	Exhibit 1
	Term	  	2
	Termination Fees	  	17.h
	Terminating Party	  	12.a.i
	Third Party Agreement	  	17.h
	Third Party Vendor	  	17.h
	Transaction Information	  	5.a

  
 31 

 Exhibit 2 

Points Issuance and Redemption Fees 

A. Points Issuance Fees. For each Program-Eligible Purchase completed by a Member in an LE Format in accordance with the Agreement, LE
will pay to SHMC a fee (the “Points Issuance Fee”) consisting of the fees related to Base Points (the “Base Points Fee”) and Additional Points (the “Additional Points Fee”), if any. The Base Points
Fee and Additional Points Fee are calculated according to the following formulas: 
 1. Base Points Fee. The Base
Points Fee will be [*****] for every thousand (1,000) Base Points issued to Members as a result of Program-Eligible Purchases in LE Formats. 

2. Additional Points Fee. The Additional Points Fee will be [*****] for every thousand (1,000) Additional Points
issued to Members as a result of Program-Eligible Purchases in LE Formats. 
 B. Surprise Points Fee. The Surprise
Points Fee will be [*****] for every thousand (1,000) Surprise Points redeemed in LE Formats. 
 C. Reimbursements and
Payments Upon Redemption. 
 1. Calculation of Rate. As applicable, SHMC will reimburse LE or LE will pay SHMC
for Base Points and Additional Points that are redeemed in LE Formats each fiscal quarter “Redemption Fees”). The rate of such reimbursement or payment will be determined at the beginning of each fiscal quarter and will be fixed for
that entire quarter. The effective rate used for these purposes (the “Burn Rate”) will be the rate expressed as the total number of Base Points and Additional Points (regardless of source) redeemed in LE Formats divided by the total
number of Base Points and Additional Points issued by LE Formats, calculated on a trailing twelve (12) month basis. The Burn Rate will be calculated prior to the beginning of each fiscal quarter and will be the effective rate used for the next
three fiscal months. Only Base Points and Additional Points that expire after twelve (12) months are taken into consideration when calculating the Burn Rate. 

  
 32 

 2. Burn Rate of 125% or Less. Where the overall Burn Rate is 125% or less,
SHMC will reimburse LE for every thousand (1,000) Points (Base Points and/or Additional Points) redeemed in LE Formats in the applicable fiscal quarter in accordance with the following chart: 

 

							
	Quarterly
Burn
Rate	 	 	SYW
Reimburses	 
	 	50	% 	 	 	[	*****] 
	 	55	% 	 	 	[	*****] 
	 	60	% 	 	 	[	*****] 
	 	65	% 	 	 	[	*****] 
	 	70	% 	 	 	[	*****] 
	 	75	% 	 	 	[	*****] 
	 	80	% 	 	 	[	*****] 
	 	85	% 	 	 	[	*****] 
	 	90	% 	 	 	[	*****] 
	 	95	% 	 	 	[	*****] 
	 	100	% 	 	 	[	*****] 
	 	105	% 	 	 	[	*****] 
	 	110	% 	 	 	[	*****] 
	 	115	% 	 	 	[	*****] 
	 	120	% 	 	 	[	*****] 
	 	125	% 	 	 	[	*****] 

 3. Burn Rate is Greater than 125%. Where the overall Burn Rate is above 125%, LE will
pay SHMC for every thousand (1,000) Points (Base Points and/or Additional Points) redeemed in LE Formats in the applicable fiscal quarter in accordance with the following chart: 

 

							
	Quarterly
Burn
Rate	 	 	Fees
to
SYW	 
	 	125	% 	 	 	[	*****] 
	 	130	% 	 	 	[	*****] 
	 	135	% 	 	 	[	*****] 
	 	140	% 	 	 	[	*****] 
	 	145	% 	 	 	[	*****] 
	 	150	% 	 	 	[	*****] 
	 	155	% 	 	 	[	*****] 
	 	160	% 	 	 	[	*****] 
	 	165	% 	 	 	[	*****] 
	 	170	% 	 	 	[	*****] 
	 	175	% 	 	 	[	*****] 
	 	180	% 	 	 	[	*****] 
	 	185	% 	 	 	[	*****] 
	 	190	% 	 	 	[	*****] 
	 	195	% 	 	 	[	*****] 
	 	200	% 	 	 	[	*****] 

  
 33 

 D. Examples: 

Example Quarterly Time Period #1 

Burn Rate = 50% 
  

	 	•	 	Every 1,000 Points redeemed in LE Formats is worth [*****] and SHMC calculates the quarterly Burn Rate before the quarter begins to be 50% based on the previous 12 months. 

 

	 	•	 	LE issues Members 1,000,000,000 Base Points (worth [*****] in LE Formats) and pays [*****] points issued = [*****] 

  

	 	•	 	LE issues another 1,000,000,000 (worth [*****] in LE Formats) Bonus Points on special Member offers and pays [*****] points issued = [*****] 

 

	 	•	 	Members redeem 1,000,000,000 Points in LE Formats, worth [*****]. 

  

	 	•	 	LE receives [*****] from SHMC for the cost of these redeemed Points, as 1,000,000,000 Points were redeemed at the applicable reimbursement rate of [*****] Points redeemed. 

 

	 	•	 	LE pays SHMC [*****] for the incremental benefit of having more Points redeemed in LE Formats. 

Example Quarterly Time Period #2 

Burn Rate = 150% 
  

	 	•	 	Every 1,000 Points redeemed in LE Formats is worth [*****] and SHMC calculates the quarterly Burn Rate before the quarter begins to be 150% based on the previous 12 months. 

 

	 	•	 	LE issues Members 1,000,000,000 Base Points (worth [*****] in LE Formats) and pays [*****] points issued = [*****] 

  

	 	•	 	LE issues another 1,000,000,000 Bonus Points on special Member offers (worth [*****] in LE Formats) and pays [*****] Points issued = [*****] 

 

	 	•	 	Members redeem 3,000,000,000 points in LE Formats, worth [*****]. 

  

	 	•	 	LE receives [*****] from SHMC for the cost of these Points, as Points redeemed in LE Formats exceeded 125% of the Points issued by LE Formats. 

 

	 	•	 	LE pays SHMC [*****] for the incremental benefit of having more Points redeemed in LE Formats than were actually issued by LE Formats (at a quarterly Burn Rate of 150% LE pays SHMC [*****] Points redeemed so [*****]).

  
 34 

 Exhibit 3 

Rate Card and Email Support Services 

Definitions: 

“CPM” means cost per thousand. 

“Hero” means the primary featured product in a multiple product email. The Hero is featured at the top of the email, and
determines the subject line of the email. 
 “Slice” means one of 4-6 sub-features or products in an email. The Slice is
typically displayed “below the fold” e.g. not visible until/unless Member scrolls down in the email, or some equivalent action depending on the format of the email. 

“Solo” means an email campaign that features a single business unit or store format. 

“TI” means targeted interactions. 

“Trigger” means any metric or event used to generate an automatic communication to a Member, for example, emails sent upon
purchase of merchandise, or POS contact. 
 Rate Card 
  

							
	 Email Campaign Development and Deployment Services
	  	 Cost
	 
		
	 Email Campaigns to Members who have made LE Program-Eligible Purchases

 
 •   Includes Transactional
Communications, Existing Triggers, Shopper Recap, and eReceipts
	  	 
 
 	$4.00 CPM
($600/campaign
minimum)	  
  
  
		
	 Special Projects/New Development – defined in a separate SOW

 
 •   Includes new Triggers,
New/Revised transactional messaging and communications, or other net new campaigns
	  	 
 
 
 
 
 	Rate Card +
CPM (if
applicable,
otherwise as
defined in
SOW)	  
  
  
  
  
  
			
	 Email Creative/Coding Development Services
	  	 	  	 	 
			
	New Trigger/Transactional Creative Template	  		  	$	16,000	  
	New Dynamic Promotional Creative Template	  		  	$	8,000	  
	New Standard Email Postcard Creative Template	  		  	$	4,000	  
	Banners/Trolley’s	  		  	$	500	  
	Critical Changes	  	(changes requested less than 5 days prior to launch date)	  			
		  	Hero	  	$	5,000	  
		  	Slice	  	$	2,500	  

  
 35 

 Email Service Notes: 
  

	 	•	 	SHMC will continue to deploy emails for the lifecycle trigger emails which LE may participate in, including but not limited to: 

  

	 	•	 	Welcome Emails 

  

	 	•	 	Non-Redeemer Emails 

  

	 	•	 	Lapsed Member Emails 

  

	 	•	 	VIP Member Emails 

  

	 	•	 	Promotional emails to the Program’s opt-in email list require 10 business days from SHMC receipt of all required assets, rules, and documentation from LE. 

 

	 	•	 	New creative templates (not one off campaigns in existing templates) require 4 weeks from SHMC’s receipt of all requirements from LE. 

 

	 	•	 	With respect to any LE-specific promotional email campaign purchased pursuant to this Exhibit 3, LE may provide SHMC with a list of LE email opt-outs and SHMC will use commercially reasonable efforts to exclude all
addresses on such list from the campaign; provided that: (1) such services and any applicable terms and fees must first be mutually agreed upon in a separate SOW; (2) such services are not available for any other promotional emails from
the Program that may reference or promote LE, and (3) SHMC will not provide these services with respect to any emails that SHMC reasonably determines in its sole discretion to fall within the transaction or relationship exception under the
CAN-SPAM Act and associated rules or guidance provided by the Federal Trade Commission, even if LE is promoted in such emails. 

  

							
	 Predictive Analytics
	  	 	 
	 	  	Project Price	 
		
	 Predictive Models
	  	$	81,900	  
		
	 Campaign Design and Evaluation (DM, Liquidity, etc.)
	  	$	23,100	  
		
	 Segmentation Analysis
	  	$	15,300	  
		
	 Campaign Sizing and List Pull
	  	$	1,980	  
			
	 Targeting Execution / Campaign Measurement / Member Analytics
	 	 	  	 	 
	 	 	 	  	Project Price	 
	 Campaign Deep Dives
	 	Campaign deep dives	  	$	7,290	  
	 	Offer impact analysis	  	$	8,280	  
	 Segmentation/Clustering Model
	 	BU Member segmentation	  	$	94,500	  
	Miscellaneous Analysis	 	Low Effort Counts. (How many Members ...)	  	$	1,680	  
	 	Moderate Effort Analysis	  	$	12,375	  
	 	Analytical Deep Dive	  	$	37,500	  

  
 36 

							
	 Personalization Services
	  	 	 
		
	 TI @ POS (LE)
	  	$	0.03 per print	  
	 TI propensity models (includes quarterly re-scoring)
	  	$	15,000/each	  
	 TI Implementation into new email campaign
	  	$	5,000 per campaign	  
	 Other TI requests
	  	 	Per agreed upon SOW	  

  
 37 

 Exhibit 4 

Marks 
 Word Marks

 SHOPYOURWAY 

SHOPYOURWAY REWARDS 
 SHOP YOUR WAY

 SHOP YOUR WAY REWARDS 
 SHOP
YOUR WAY MAX 
 PERSONAL SHOPPER BY SHOP YOUR WAY 

SYW MAX 
 Logos and Design
Marks 
  

			
	

	 	

	

	 	

  
 38 

 Exhibit 5 

Information Security 
 At
a minimum and as specified herein, LE shall provide security for all data and communication systems in support of the Agreement to which this Exhibit 5 is attached (“Security Exhibit”). 

LE’s security efforts will include, without limitation: 

[*****]: 
  

	•	 	[*****] 

  

	•	 	[*****] 

  

	•	 	[*****] 

  

	•	 	[*****] 

  

	•	 	[*****] 

  

	•	 	[*****] 

  

	•	 	[*****] 

  

	•	 	[*****] 

  

	•	 	[*****] 

  

	•	 	[*****] 

 [*****] 

[*****] 
  

	•	 	[*****] 

  

	•	 	[*****] 

  

	•	 	[*****] 

 [*****] 

[*****] 
 [*****]: 

 

	 	•	 	[*****] 

  

	 	•	 	[*****] 

  

	 	•	 	[*****] 

  

	 	•	 	[*****] 

  
 39 

 [*****] 

[*****]: 
  

	 	•	 	[*****] 

  

	 	•	 	[*****] 

  

	 	•	 	[*****] 

  

	 	•	 	[*****] 

  

	 	•	 	[*****] 

  

	 	•	 	[*****] 

 [*****] 

[*****] 
  

	 	•	 	[*****] 

  

	 	•	 	[*****] 

  
 40

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