Document:

Form of Executive Severance Agreement

 EXHIBIT 10.19 
 [Includes Payment of Target Bonus/Subject to Mitigation] 
 EXECUTIVE SEVERANCE AGREEMENT 
 By this Executive Severance Agreement dated as of
                    , 200     (“Agreement”), Sears Holdings Corporation and its affiliates and
subsidiaries (“Sears”), and [                    ] (“Executive”), intending to be legally bound, and for
good and valuable consideration, agree as follows: 
 1. Severance Benefits. 
 (a) Continuation of Compensation. In the event that Executive’s employment is terminated by each Sears entity by which the
Executive is employed for any reason other than “Cause”, death or “Disability” (as such terms are defined in Section 2 below) or by Executive for Good Reason (as defined in Section 2 below), subject to the provisions of
subsection 4(e), Section 5 and Section 10 herein, Executive shall be placed on a severance-related leave of absence (“Leave”) and Sears shall: 
 i. Continue to pay Executive’s base salary, at the rate in effect immediately prior to the first day of the Leave, for a period of
one (1) year (“Salary Continuation Period”), which amount shall be paid on each regular salary payroll period with respect to the Salary Continuation Period; and 
 ii. Pay Executive a target bonus for the period of Salary Continuation Period (i.e., twelve months) based on Executive’s then current
target bonus percentage (“Target Bonus”), which amount shall be paid in installments on each regular salary payroll period with respect to the Salary Continuation Period; 
 provided that, in any event, Sears’ obligations under this subsection (a) shall be reduced on a dollar-for-dollar basis (but not below zero) to
the extent Executive earns fees, salary or wages from a subsequent employer (including those arising from self-employment) during the Salary Continuation Period. Notwithstanding anything in this subsection (a) to the contrary, if as of the
first day of the Leave Executive is a “key employee” or “specified employee” within the meaning of Internal Revenue Code (“Code”) Section 409A and regulations issued thereunder, then, if necessary to comply with
Code Section 409A, payment to Executive shall not be made to Executive until six (6) months after the first day of Executive’s Leave and payment of the first six (6) months of salary continuation (under subsection (a)(i)) and
Target Bonus (under subsection (a)(ii)) shall be made in a lump sum and the remaining six (6) months shall be paid on each regular salary payroll period. In addition to the foregoing, a lump sum payment will be made to Executive within ten
(10) business days following the first day of the Leave in an amount equal to the sum of any accrued base salary through the first day of the Leave to the extent not already paid and any vacation benefits that accrued prior to the Leave. No
vacation will accrue during the Leave. All salary continuation payments and benefits will terminate and forever lapse if Executive is employed by a “Sears Competitor” as defined in subsection 4(b)(ii) herein. 

 (b) Continuation of Benefits. During the Salary Continuation Period, Executive
will be entitled to participate in all benefit plans and programs (except as specified in this subsection (b)) in which Executive was eligible to participate immediately prior to the Leave (subject to the terms and conditions and continued
availability of such plans and programs); provided, however, that Executive will not be eligible to participate in the long-term disability plan, flexible spending accounts, Sears paid life insurance and the Sears Holdings 401(k) Savings Plan (or
any other defined contribution plan sponsored by Sears) during the Leave. Executive and Executive’s eligible dependents shall be entitled to continue to participate in Sears medical and dental plans (subject to the terms and conditions and
continued availability of such plans). However, in the event Executive provides services to another employer and is covered by such employer’s health benefits plan or program, the medical and dental benefits provided by Sears hereunder shall be
secondary to such employer’s health benefits plan or program in accordance with the terms of Sears health benefit plans. 
 (c) Annual Incentive Plan. Upon occurrence of the Leave, Executive shall not be entitled to any award Executive otherwise may have been eligible for under an annual incentive plan sponsored by Sears. 
 (d) Long-Term Performance Program. Upon occurrence of the Leave, Executive’s entitlement to any award granted to Executive
under a long-term incentive program (“LTIP”) sponsored by Sears, shall be determined in accordance with the terms and conditions of the award letter and the LTIP document regarding termination of employment (as if the termination of
employment occurred on the first day of the Leave). 
 (e) Stock Plan. Upon occurrence of the Leave, any unvested
restricted stock awarded to Executive under a stock plan sponsored by Sears, shall be forfeited as of the first day of the Leave. 
 (f) Outplacement. From the first day of the Leave, Executive will be immediately eligible for outplacement services at Sears’ expense. Sears and Executive will mutually agree on which outplacement firm, among current vendors
used by Sears, will provide these services. Such services will be provided for up to one (1) year from the beginning of the Salary Continuation Period or until employment is obtained, whichever occurs first. 
 2. Definitions. For purposes of this Agreement, the following terms shall have the definitions as set forth below: 
 (a) “Cause” shall mean (i) a material breach by Executive (other than a breach resulting from Executive’s
incapacity due to a Disability) of Executive’s duties and responsibilities which breach is demonstrably willful and deliberate on Executive’s part, is committed in bad faith or without reasonable belief that such breach is in the best
interests of Sears and is not remedied in a reasonable period of time after receipt of written notice from Sears specifying such breach; (ii) the commission by Executive of a felony involving moral turpitude; or (iii) dishonesty or willful
misconduct in connection with Executive’s employment. 
  

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 (b) “Disability” shall mean disability as defined under the Sears
long-term disability plan. 
 (c) “Good Reason” shall
mean, without Executive’s written consent, (i) a reduction of more than ten percent (10%) in the sum of Executive’s annual base salary and target bonus from those in effect as of the date of this Agreement;
(ii) Executive’s mandatory relocation to an office more than fifty (50) miles from the primary location at which Executive is required to perform Executive’s duties immediately prior to the date of this Agreement; or
(iii) any other action or inaction that constitutes a material breach of the terms of this Agreement, including failure of a successor company to assume or fulfill the obligations under this Agreement. In each case, Executive must provide
Sears with written notice of the facts giving rise to a claim that “Good Reason” exists for purposes of this Agreement, within thirty (30) days of the initial existence of such Good Reason event, and Sears shall have a right
to remedy such event within sixty (60) days after receipt of Executive’s written notice (“the sixty (60) day period”). If Sears remedies the Good Reason event within the sixty (60) day
period the Good Reason event (and Executive’s right to receive any benefit under this Agreement on account of termination of employment for Good Reason) shall cease to exist. If Sears does not remedy the Good Reason event within the
sixty (60) day period, and Executive does not terminate employment within thirty (30) days following the earlier of: (y) the date Sears notifies Executive that it does not intend to remedy the Good Reason or does not agree that
there has been a Good Reason event, or (z) the expiration of the sixty (60) day period, the Good Reason event (or any claim of Good Reason) shall cease to exist. Notwithstanding the foregoing, if Executive fails to provide
written notice to Sears of the facts giving rise to a claim of Good Reason within thirty (30) days of the initial existence of such Good Reason event, the Good Reason event (and Executive’s right to receive any benefit under
this Agreement on account of termination of employment for Good Reason) shall cease to exist as of the thirty-first (31st) day
following the later of its occurrence or Executive’s knowledge thereof. 
 3. Intellectual Property Rights. Executive
acknowledges that Executive’s development, work or research on any and all inventions or expressions of ideas, that may or may not be eligible for patent, copyright, trademark or trade secret protection, hereafter made or conceived solely or
jointly within the scope of employment at Sears, provided such invention or expression of an idea relates to the business of Sears, or relates to Sears actual or demonstrably anticipated research or development, or results from any work performed by
Executive for or on behalf of Sears, are hereby assigned to Sears, including Executive’s entire rights, title and interest. Executive will promptly disclose such invention or expression of an idea to Executive’s management and will, upon
request, promptly execute a specific written assignment of title to Sears. If Executive currently holds any inventions or expressions of an idea, regardless of whether they were published or filed with the U.S. Patent and Trademark Office or the
U.S. Copyright Office, or is under contract to not so assign, Executive will list them on the last page of this Agreement. 
  

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 4. Protective Covenants. Executive acknowledges that this Agreement provides for additional
consideration beyond what Sears is otherwise obligated to pay. In consideration of the opportunity for severance benefits and special payments specified above, and other good and valuable consideration, Executive agrees to the following: 

(a) Non-Disclosure and Non-Solicitation. Executive acknowledges and agrees to be bound by the following, whether or not
Executive receives severance benefits pursuant to Section 1 hereto (“Severance Benefits”): 
 i.
Non-Disclosure of Sears Confidential Information. 
 1. Executive will not, during the term of Executive’s
employment with Sears (including the Leave) or thereafter, except as Sears may otherwise consent or direct in writing, reveal or disclose, sell, use, lecture upon or publish any “Sears Confidential Information” (as defined herein) until
such time as the information becomes publicly known other than as a result of its disclosure, directly or indirectly, by Executive; and 
 2. Executive understands that if Executive possesses any proprietary information of another person or company as a result of prior employment or otherwise, Sears expects and requires that Executive will honor any and
all legal obligations that Executive has to that person or company with respect to proprietary information, and Executive will refrain from any unauthorized use or disclosure of such information. 
 ii. Sears Confidential Information. For purposes of this Agreement, “Sears Confidential Information” means trade
secrets and non-public information which Sears designates as being confidential or which, under the circumstances, should be treated as confidential, including, without limitation, any information received in confidence or developed by Sears, its
long and short term goals, vendor and supply agreements, databases, methods, programs, techniques, business information, financial information, marketing and business plans, proprietary software, personnel information and files, client information,
pricing, and other information relating to the business of Sears that is not known generally to the public or in the industry. 
 iii. Return of Sears Property. All documents and other property that relate to the business of Sears are the exclusive property of Sears, even if Executive authored or created them. Executive agrees to return all such documents and
tangible property to Sears upon termination of employment or at such earlier time as Sears may request Executive to do so. 
 iv. Conflict of Interest. During Executive’s employment with Sears (including the Leave), except as may be approved in writing by Sears, neither Executive nor members of Executive’s immediate family will have financial
investments or other interests or relationships with the Sears’ customers, suppliers or competitors which might impair Executive’s 

  

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independence of judgment on behalf of the Company. Executive agrees further not to engage in any activity in competition with Sears and will avoid any
outside activity that could adversely affect the independence and objectivity of Executive’s judgment, interfere with the timely and effective performance of Executive’s duties and responsibilities to Sears, discredit Sears or otherwise
conflict with the Sears’ best interests. 
 v. Non-Solicitation of Employees. During Executive’s employment
with Sears (including the Leave) and for one (1) year from the first day of the Leave, Executive shall not, directly or indirectly, solicit or encourage any person to leave her/his employment with Sears or assist in any way with the hiring of
any Sears employee by any future employer or other entity. 
 (b) Non-Competition. Executive acknowledges that as a
result of Executive’s position at Sears, Executive has learned or developed, or will learn or develop, Sears Confidential Information (as defined in subsection 4(a)(ii) above) and that use or disclosure of Sears Confidential Information is
likely to occur if Executive were to render advice or services to any Sears Competitor. 
 i. Therefore, for one (1) year
from the first day of the Leave, whether or not Executive receives Severance Benefits pursuant to Section 1 hereto, Executive will not, directly or indirectly, aid, assist, participate in, consult with, render services for, accept a position
with, become employed by, or otherwise enter into any relationship with (other than having a passive ownership interest in or being a customer of) any Sears Competitor. 
 ii. For purposes of this Agreement, “Sears Competitor” means: 
 1. Those companies listed on Appendix A, each of which Executive acknowledges is a Sears Competitor, whether or not it falls
within the categories in (2), below, and further acknowledges that this is not an exclusive list of Sears Competitors and is not intended to limit the generality of subsection 4(b)(ii)(2), below; and 
 2. Any party (A) engaged in any retail business (whether in a department store, specialty store, discount store, direct marketing,
or electronic commerce or other business format), that consists of selling furniture, appliances, electronics, hardware, auto parts and/or apparel products, or providing home improvement, product repair and/or home services, with combined annual
revenue in excess of $1 billion, (B) any vendor with combined annual gross sales of services or merchandise to Sears in excess of $200 million, or (C) a party engaged in any other line of business, in which Sears has commenced business
prior to the end of Executive’s employment, with Sears having annual gross sales in that line of business in excess of $100 million. 
  

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 iii. Executive acknowledges that Sears shall have the right to propose modifications to
Appendix A periodically to include (1) emergent Competitors in Sears existing lines of business and (2) Competitors in lines of business that are new for Sears, in each case, with the prior written consent of Executive, which
consent shall not be unreasonably withheld. 
 iv. Executive further acknowledges that Sears does business throughout the
United States, Puerto Rico, U.S. Virgin Islands, Guam and Canada and that this non-compete provision applies in any state or province (as applicable) of the United States, Puerto Rico, U.S. Virgin Islands, Guam and Canada, in which Sears does
business. 
 (c) Compliance with Protective Covenants. Executive will provide Sears with such information as Sears may
from time to time reasonably request to determine Executive’s compliance with this Section 4. Executive authorizes Sears to contact Executive’s future employers and other entities with which Executive has any business relationship to
determine Executive’s compliance with this Agreement or to communicate the contents of this Agreement to such employers and entities. Executive releases Sears, its agents and employees, from all liability for any damage arising from any such
contacts or communications. 
 (d) Necessity and Reasonableness. Executive agrees that the restrictions set forth
herein are necessary to prevent the use and disclosure of Sears Confidential Information and to otherwise protect the legitimate business interests of Sears. Executive further agrees and acknowledges that the provisions of this Agreement are
reasonable. 
 (e) General Release and Waiver. Upon the occurrence of a Leave under the terms of this Agreement
(whether initiated by Executive or Sears), Executive will execute a binding General Release and Waiver of claims in a form to be provided by Sears, which is incorporated by reference herein. This General Release and Waiver will be in a form
substantially similar to the attached sample. If the General Release and Waiver is not signed or is signed but subsequently revoked, Executive will not receive severance pay (if any) or any other benefits due under this Agreement. 
 (f) Exception Request. For the avoidance of doubt, Executive may request (i) a waiver of the non-competition provisions of
this Agreement or (ii) that the time frame in subsection 4(b) above commence during Executive’s continued employment with Sears, by written request to the Senior Vice President, Human Resources (or the equivalent) of Sears. Such a request
will be given reasonable consideration and may be granted, in whole or in part, or denied at Sears’ absolute discretion. 
 5.
Irreparable Harm. Executive acknowledges that irreparable harm would result from any breach by Executive of the provisions of this Agreement, including without limitation subsections 4(a) and 4(b), and that monetary damages alone would not
provide adequate relief for any such breach. Accordingly, if Executive breaches or threatens to breach this Agreement, Executive consents to injunctive relief in favor of Sears without the necessity of Sears posting a bond. Moreover, any award of
injunctive relief shall not preclude Sears from seeking or recovering any lawful compensatory damages which may have resulted from a breach of this Agreement, including a forfeiture of any future payments and a return of any payments already
received by Executive. 
  

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 6. Non-Disparagement. Executive will not take any actions that would reasonably be expected to be
detrimental to the interests of Sears, nor make derogatory statements, either written or oral to any third party, or otherwise publicly disparage Sears, its products, services, or present or former employees, officers or directors, and will not
authorize others to make derogatory or disparaging statements on Executive’s behalf. 
 7. Cooperation. Executive agrees, without
receiving additional compensation, to fully and completely cooperate with Sears, both during and after the period of employment with Sears (including the period of the Leave), in all investigations, potential litigation or litigation in which Sears
is involved or may become involved other than any such investigations, potential litigation or litigation between Sears and Executive. Sears will reimburse Executive for reasonable travel and out-of-pocket expenses incurred in connection with any
such investigations, potential litigation or litigation. 
 8. Future Enforcement or Remedy. Any waiver, or failure to seek
enforcement or remedy for any breach or suspected breach, of any provision of this Agreement by Sears or Executive in any instance shall not be deemed a waiver of such provision in the future. 
 9. Acting as Witness. Executive agrees that both during and after the period of employment with Sears (including the period of the Leave),
Executive will not voluntarily act as a witness, consultant or expert for any person or party in any action against or involving Sears or any corporate relative of Sears, unless subject to judicial enforcement to appear as a fact witness only.

 10. Breach by Executive. In the event of a breach by Executive of any of the provisions of this Agreement, including without
limitation the non-competition provisions (Section 4) and the non-disparagement provision (Section 6) of this Agreement, Sears obligation to make salary continuation or any other payments under this Agreement will immediately cease and any payments
already received will be returned by Executive to Sears. Further, Executive agrees that Sears shall be entitled to recovery of its attorneys’ fees and other associated costs incurred as a result of any attempt to redress a breach by Executive
or to enforce its rights and protect its interests under the Agreement. 
 11. Severability. If any provision(s) of this Agreement
shall be found invalid, illegal, or unenforceable, in whole or in part, then such provision(s) shall be modified or restricted so as to effectuate as nearly as possible in a valid and enforceable way the provisions hereof, or shall be deemed excised
from this Agreement, as the case may require, and this Agreement shall be construed and enforced to the maximum extent permitted by law, as if such provision(s) had been originally incorporated herein as so modified or restricted or as if such
provision(s) had not been originally incorporated herein, as the case may be. 
 12. Governing Law. This Agreement will be governed
under the internal laws of the state of Illinois without regard to principles of conflicts of laws. Executive agrees that the state and federal courts located in the state of Illinois shall have exclusive jurisdiction 

  

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in any action, lawsuit or proceeding based on or arising out of this Agreement, and Executive hereby: (a) submits to the personal jurisdiction of such
courts; (b) consents to the service of process in connection with any action, suit, or proceeding against Executive; and (c) waives any other requirement (whether imposed by statute, rule of court, or otherwise) with respect to personal
jurisdiction, venue or service of process. 
 13. Right to Jury. Executive agrees to waive any right to a jury trial on any claim
contending that this Agreement or the General Release and Waiver is illegal or unenforceable in whole or in part, and Executive agrees to try any claims brought in a court or tribunal without use of a jury or advisory jury. Further, should any claim
arising out of Executive’s employment or termination of employment be found by a court or tribunal of competent jurisdiction to not be released by the General Release and Waiver, Executive agrees to try such claim to the court or tribunal
without use of a jury or advisory jury. 
 14. Employment-at-Will. This Agreement does not constitute a contract of employment, and
Executive acknowledges that Executive’s employment with Sears is terminable “at-will” by either party with or without cause and with or without notice. 
 15. Other Plans, Programs, Policies and Practices. If any provision of this Agreement conflicts with any other plan, programs. policy, practice or other Sears document, then the provisions of this Agreement
will control, except as otherwise precluded by law. Executive shall not be eligible for any benefits under the Sears Holdings Corporation Master Transition Pay Plan or the Kmart Corporation Master Severance Pay Plan or any successor severance plan
or program. 
 16. Entire Agreement. This Agreement, including any Exhibits hereto, contains and comprises the entire understanding
and agreement between Executive and Sears and fully supersede any and all prior agreements or understandings between Executive and Sears with respect to the subject matter contained herein, and may be amended only by a writing signed by the Chief
Executive Officer or Senior Vice President, Human Resources (or the equivalent) of Sears. 
 17. Confidentiality. Executive agrees
that the existence and terms of the Agreement, including the compensation paid to Executive, and discussions with Sears regarding this Agreement, shall be considered confidential and shall not be disclosed or communicated in any manner except:
(a) as required by law or legal process; (b) to Executive’s spouse, domestic partner, or financial/legal advisors, all of whom shall agree to keep such information confidential. 
 18. Tax Withholding. All compensation paid or provided to Executive under this Agreement shall be subject to any applicable federal, state or
local income and employment tax withholding requirements. 
  

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 19. Notices. All notices and other communications hereunder shall be in writing and shall be given
by hand delivery to the other parties or by registered or certified mail, return receipt requested, postage prepaid, addressed as follows: 
  

					
	If to the Executive:	  	At the most recent address on file at Sears.
		
	If to Sears:	  	Sears Holdings Corporation
		  	3333 Beverly Road
		  	Hoffman Estates, Illinois 60179
		  	Attention to both:	  	Senior Vice President, Human Resources
		  		  	Senior Vice President, General Counsel

 20. Assignment. Sears may assign its rights under this Agreement to any successor in
interest, whether by merger, consolidation, sale of assets, or otherwise. This Agreement shall be binding whether it is between Sears and Executive or between any successor or assignee of Sears or affiliate thereof and Executive. 
 21. Counterparts. This Agreement may be executed in one or more counterparts, which together shall constitute a valid and binding agreement.

 [Remainder of page intentionally left blank.] 
  

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 IN WITNESS WHEREOF, Executive and Sears, by its duly authorized representative, have executed this
Agreement on the dates stated below, effective as of the date first set forth above. 
  

							
	EXECUTIVE	 		 	SEARS HOLDINGS CORPORATION
				
	  
	 		 	BY:	 	  

	[                    ]	 		 		 	
			
	  
	 		 	  

	Date	 		 	Date

  

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 NOTICE: YOU MAY CONSIDER THIS GENERAL RELEASE AND WAIVER FOR UP TO TWENTY-ONE (21) DAYS. IF YOU DECIDE TO SIGN
IT, YOU MAY REVOKE THE GENERAL RELEASE AND WAIVER WITHIN SEVEN (7) DAYS AFTER SIGNING. ANY REVOCATION WITHIN THIS PERIOD MUST BE IMMEDIATELY SUBMITTED IN WRITING TO GENERAL COUNSEL, SEARS HOLDINGS CORPORATION, 3333 BEVERLY ROAD, HOFFMAN
ESTATES, IL 60179. YOU MAY WISH TO CONSULT WITH AN ATTORNEY BEFORE SIGNING THIS DOCUMENT. 
 GENERAL RELEASE AND WAIVER 

In consideration for the benefits that I will receive under the attached Executive Severance Agreement, I and any person acting by, through, or under
me hereby release, waive, and forever discharge Sears Holdings Corporation, its current and former agents, subsidiaries, affiliates, employees, officers, stockholders, successors, and assigns (“Sears”) from any and all liability, actions,
charges, causes of action, demands, damages, or claims for relief or remuneration of any kind whatsoever, whether known or unknown at this time, arising out of, or connected with, my employment with Sears and the termination of my employment,
including, but not limited to, all matters in law, in equity, in contract (oral or written, express or implied), or in tort, or pursuant to statute, including any claim for age or other types of discrimination under the Age Discrimination in
Employment Act (“ADEA”), Title VII of the Civil Rights Act of 1964, the Americans with Disabilities Act, or other federal, state, or local law or ordinance, to the fullest extent permitted under the law, including the Employee Retirement
Income Security Act (“ERISA”). This General Release and Waiver does not apply to any claims or rights that may arise after the date that I signed this General Release and Waiver. I understand that Sears is not admitting to any violation of
my rights or any duty or obligation owed to me. 
 Excluded from this General Release and Waiver are my claims which cannot be waived by law,
including but not limited to (1) the right to file a charge with or participate in an investigation conducted by certain government agencies, (2) any rights or claims to benefits accrued under benefit plans maintained by Sears pursuant to
ERISA, and (3) any claims that cannot be waived under the Fair Labor Standards Act or Family and Medical Leave Act. I do, however, waive my right to any monetary recovery should any agency pursue any claims on my behalf. I represent and warrant
that I have not filed any complaint, charge, or lawsuit against Sears with any governmental agency and/or any court. 
 In addition, I agree
never to sue Sears in any forum for any claim covered by this General Release and Waiver except that I may bring a claim under the ADEA to challenge this General Release and Waiver. If I violate this General Release and Waiver by suing Sears, other
than under ADEA, I shall be liable to Sears for its reasonable attorney’s fees and other litigation costs and expenses incurred in defending against such a suit. 
 I have read this General Release and Waiver and I understand its legal and binding effect. I am acting voluntarily and of my own free will in executing this General Release and Waiver. 

 I have had the opportunity to seek, and I was advised in writing to seek, legal counsel prior to signing
this General Release and Waiver. 
 I was given at least twenty-one (21) days to consider signing this General Release and Waiver. Any
immaterial modification of this General Release and Waiver does not restart the twenty-one (21) day consideration period. 
 I
understand that, if I sign the General Release and Waiver, I can change my mind and revoke it within seven (7) days after signing it by notifying the General Counsel of Sears in writing at Sears Holdings Corporation, 3333 Beverly Road, Hoffman
Estates, Illinois 60179. I understand that this General Release and Waiver will not be effective until after this seven (7) day revocation period has expired. 
  

									
		 	Date:	 	SAMPLE ONLY - DO NOT SIGN	 	Signed by:	 	SAMPLE ONLY - DO NOT SIGN
		 		 		 	Witness by:	 	  

  

 24th Amendment to Letter of Credit Agreement

 EXHIBIT 10.29 
 FOURTH AMENDMENT TO 
 LETTER OF CREDIT AGREEMENT 
 This Fourth Amendment to Letter of Credit Agreement (the “Fourth Amendment”) is made as of the 22nd day of February, 2008 by and among

 KMART CORPORATION (“Kmart”), a corporation organized under the laws of the State of Michigan having a place of business at 3333
Beverly Road, Hoffman Estates, Illinois 60179; 
 SEARS HOLDINGS CORPORATION (“Sears Holdings”), a corporation organized under the
laws of the State of Delaware having a place of business at 3333 Beverly Road, Hoffman Estates, Illinois 60179; 
 SEARS ROEBUCK ACCEPTANCE
CORP. (“SRAC”), a corporation organized under the laws of the State of Delaware having a place of business at 3711 Kennett Pike, Greenville, Delaware 19807; 
 SEARS, ROEBUCK AND CO. (“Sears”), a corporation organized under the laws of the State of New York having a place of business at 3333 Beverly Road, Hoffman Estates, Illinois 60179; and 
 BANK OF AMERICA, NATIONAL ASSOCIATION (the “Issuing Bank”), a national banking association having a place of business at 100 Federal Street,
Boston, Massachusetts 02110. 
 WITNESSETH 
 WHEREAS, Kmart and the Issuing Bank have entered into a Letter of Credit Agreement dated as of August 13, 2004, as amended by the First Amendment thereof dated August 13, 2004, as further amended by the
Second Amendment thereof dated December 23, 2004, as further amended by the Third Amendment thereof dated July 21, 2006 (as amended and in effect, the “Credit Agreement”); and 
 WHEREAS, the parties have agreed to amend the Credit Agreement as set forth herein. 
 NOW THEREFORE, it is hereby agreed as follows: 
  

	1.	Definitions: All capitalized terms used herein and not otherwise defined shall have the same meaning herein as in the Credit Agreement. 

  

	2.	Amendments to Article 1. The provisions of Article 1 of the Credit Agreement are hereby amended as follows: 

  

	 	a.	by adding the following definition in appropriate alphabetical order: 

 “Fourth Amendment” means the Fourth Amendment to Letter of Credit Agreement dated as of February 22, 2008. 
  

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	 	b.	The definition of “Existing Financing Agreement” set forth in Section 1.01 of the Credit Agreement is hereby deleted in its entirety and the following substituted in
its stead: 

 “Existing Financing Agreement” means the Credit Agreement (the “JPMorgan Credit Agreement”),
dated as of February 22, 2005, as amended, among Sears Holdings Corporation, Sears Roebuck Acceptance Corp., Kmart Corporation, the lenders party thereto, certain other parties, and JPMorgan Chase Bank, N.A., as administrative agent.

  

	3.	Amendments to Article 2. The provisions of Section 2.16 of the Credit Agreement are hereby deleted in their entirety and the following substituted in their stead:

 Kmart or any applicable Subsidiary Credit Party may, upon three (3) Business Days written notice (a “Transfer
Notice”) to the Issuing Bank, request that any or all of the Letters of Credit issued under this Agreement be deemed issued under the Existing Financing Agreement. Provided that the issuance of such Letters of Credit would be permitted under
the Existing Financing Agreement and all conditions precedent to such issuance would be satisfied (as if such Letters of Credit were newly issued on the date set forth in the Transfer Notice) and such issuance would not result in the occurrence of a
Default or Event of Default (as each of those terms is defined in the Existing Financing Agreement), the Issuing Bank shall take such action, at the expense of Kmart or the applicable Subsidiary Credit Party, as may be reasonably required to cause
such Letters of Credit to become “Letters of Credit” under the Existing Financing Agreement. Unless Kmart otherwise requests, such transfer of any Letters of Credit shall not cause a reduction in the Commitments of the Issuing Bank
hereunder. 
  

	4.	Conditions to Effectiveness. This Fourth Amendment shall not be effective until each of the following conditions precedent have been fulfilled to the satisfaction of the
Issuing Bank: 

  

	 	a.	This Fourth Amendment shall have been duly executed and delivered by Kmart and the Subsidiary Credit Parties and the Issuing Bank. 

  

	 	b.	Kmart and the Subsidiary Credit Parties shall reimburse the Issuing Bank for all expenses incurred by the Issuing Bank in connection herewith, including, without limitation,
reasonable attorneys’ fees. 

  

	 	c.	No Default or Event of Default shall have occurred and be continuing. 

  

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	5.	Miscellaneous. 

  

	 	a.	Except as provided herein, all terms and conditions of the Credit Agreement and the other Credit Documents remain in full force and effect. Kmart and the Subsidiary Credit Parties
hereby ratify, confirm, and reaffirm all of the representations, warranties and covenants therein contained. 

  

	 	b.	This Fourth Amendment may be executed in several counterparts and by each party on a separate counterpart, each of which when so executed and delivered, each shall be an original,
and all of which together shall constitute one instrument. Delivery of an executed counterpart of a signature page hereto by telecopy shall be effective as delivery of a manually executed counterpart hereof. 

  

	 	c.	This Fourth Amendment expresses the entire understanding of the parties with respect to the matters set forth herein and supersedes all prior discussions or negotiations hereon.

 [Signature Page Follows] 
  

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 IN WITNESS WHEREOF, the parties hereto have caused this Fourth Amendment to be executed and their seals
to be hereto affixed as the date first above written. 
  

			
	SEARS HOLDINGS CORPORATION
		
	By	 	 /s/ William K. Phelan

	Print Name:	 	William K. Phelan
	Title:	 	SVP, Treasurer

  

			
	KMART CORPORATION
		
	By	 	 /s/ William K. Phelan

	Print Name:	 	William K. Phelan
	Title:	 	SVP, Treasurer

  

			
	SEARS, ROEBUCK AND CO.
		
	By	 	 /s/ William K. Phelan

	Print Name:	 	William K. Phelan
	Title:	 	SVP, Treasurer

  

			
	SEARS ROEBUCK ACCEPTANCE CORP.
		
	By	 	 /s/ Karen Smathers

	Print Name:	 	Karen Smathers
	Title:	 	VP, Finance and Treasurer

  

			
	OTHER SUBSIDIARY CREDIT PARTIES
		
	By	 	 /s/ William K. Phelan

	Print Name:	 	William K. Phelan
	Title:	 	Authorized Representative

  

			
	BANK OF AMERICA, NATIONAL ASSOCIATION
		
	By	 	 /s/ Christine M. Scott

	Print Name:	 	Christine M. Scott
	Title:	 	Director

  

 4

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