Document:

Letter from Registrant to Robert A. Schriesheim relating to Employment

 Exhibit 10.2 
 [SEARS HOLDINGS LETTERHEAD] 
 August 15, 2011 

Mr. Robert A. Schriesheim 
 [Address
Omitted] 
 Dear Rob, 
 We are pleased
to extend to you our offer to join Sears Holdings Corporation (“SHC”) as Executive Vice President, reporting to SHC’s Chief Executive Officer and President, Louis D’Ambrosio. Your start date will be August 16, 2011.
Effective on or about August 22, 2011, you will assume the title and responsibilities of Chief Financial Officer, in which capacity you also will report to Mr. D’Ambrosio. This letter serves as confirmation of our offer subject to the
contingencies listed below. Please note that this offer has been approved by the Compensation Committee of SHC’s Board of Directors (“Compensation Committee”). This offer is contingent upon you signing the attached Executive Severance
Agreement (the “Agreement”). 
 The key elements of your compensation package are as follows: 

 

	 	•	 	 Annual base salary at a rate of $800,000, to be reviewed annually. 

 

	 	•	 	 Participation in the Sears Holdings Corporation Annual Incentive Plan (“AIP”) with an annual incentive opportunity of 150% of your base
salary. Your target incentive under the 2011 AIP will be prorated from your start date through January 28, 2012, the last day of SHC’s 2011 fiscal year (“2011 Incentive Opportunity”). Notwithstanding the forgoing, for
SHC’s 2011 fiscal year, you will be eligible to receive an incentive payment equal to the greater of (a) the actual incentive earned and payable to you under the 2011 AIP or (b) 100% of your 2011 Incentive Opportunity (referred to
above) (“Special Incentive Award”). The Special Incentive Award will be reduced by any amount payable to you under the 2011 AIP. Any incentive payable with respect to a fiscal year (including the Special Incentive Award) will be
paid April 15th of the following fiscal year,
provided that you are actively employed at the payment date or are terminated by SHC for reasons other than Cause (as defined in the Agreement) after the last day of the 2011 fiscal year and prior to the payment date. Further details regarding our
2011 AIP target award will be provided to you following your start date. 

  

	 	•	 	 You will be eligible to receive a special cash retention bonus equal to the greater of (a) the actual incentive earned and payable to you under
the 2012 AIP or (b) 50% of your target incentive opportunity under the 2012 AIP (“Retention Award”), following SHC’s 2012 fiscal year, subject to the following terms. The Retention Award will be reduced by any amount payable to
you under the 2012 AIP and will be paid April 15, 2013, provided that you are actively employed at the payment date. 

  

	 	•	 	 You will receive a one-time cash sign-on bonus of $350,000 (gross). This sign-on bonus will be payable within thirty (30) days following your
start date. In the event you voluntarily terminate your employment with SHC (other than for Good Reason) or are terminated by SHC for Cause within twenty four (24) months of your start date, you will be required to repay this amount to SHC
within thirty (30) days of your last day worked. 

  

	 	•	 	 Subject to approval of the Compensation Committee, you will receive the following grants of restricted stock under the Sears Holdings Corporation 2006
Stock Plan: 

  

	 	•	 	 An initial grant of restricted stock valued at $4,000,000. The number of restricted shares granted will be determined using the market closing price of
SHC shares on the grant date. The grant date will be Monday, August 22, 2011, provided we have received your executed Agreement. The restricted shares granted will be scheduled to vest on a graded basis, with one-third (1/3rd) of the shares granted vesting on each of the next three
(3) anniversaries of the grant date. 

 Robert A. Schriesheim 
 August 15, 2011 
  Page
 2
 
  

	 	•	 	 Additional grants of restricted stock on each of the first and second anniversaries of your start date valued at $500,000 each. The number of
restricted shares granted upon each of these two additional grant dates will be determined using the market closing price of SHC shares on the applicable grant date. The additional restricted shares granted will vest in full on the second (2nd) anniversary of the applicable grant date.

  

	 	•	 	 You represent and warrant to SHC that (a) as of your start date with SHC, you are not subject to any obligation, written or oral, containing any
non-competition provision or any other restriction (including, without limitation, any confidentiality provision) that would result in any restriction on your ability to accept and perform this or any other position with SHC or any of its affiliates
and (b) you are not (i) a member of any board of directors, board of trustees or similar governing body of any for-profit, non-profit or not-for-profit entity, or (ii) a party to any agreement, written or oral, with any entity under
which you would receive remuneration for your services for periods after your start date, except in either case as disclosed to and approved by SHC in advance of your start date. You agree that you will not after the date hereof and except as
previously disclosed to SHC (A) become a member of any board or body described in clause (b)(i) of the preceding sentence or (B) become a party to any agreement described in clause (b)(ii) of the preceding sentence, in each case without
the prior written consent of SHC, such consent not to be unreasonably withheld. Further, you agree you will not disclose or use, in violation of an obligation of confidentiality, any information that you acquired as a result of any previous
employment or otherwise. 

  

	 	•	 	 You will be required to sign the Agreement. If your employment with SHC is terminated by SHC other than for Cause, death or Disability (as defined
in the Agreement) or by you for Good Reason: 

  

	 	•	 	 During the first twelve (12) months of employment, you will receive twelve (12) months of salary continuation, equal to your base salary at
the time of termination plus twelve (12) months of continued group health coverage (as provided under the Agreement) at active employee rates; or 

  

	 	•	 	 After the first twelve (12) months of employment, you will receive twelve (12) months of salary continuation, equal to your base salary plus
an amount equal to your target annual bonus at the time of termination plus twelve (12) months of continued group health coverage (as provided under the Agreement) at active employee rates. 

In the event of a Transfer of Shareholdings (as defined in the Agreement), additional benefits are provided as set forth in the Agreement.
Under the Agreement, you agree, among other things, not to disclose confidential information and for twelve (12) months following termination of employment not to solicit employees. You also agree not to aid, assist or render services for any
“Sears Competitor” or “Sears Vendor” (as such terms are defined in the Agreement) for twelve (12) months following termination of employment. The non-disclosure, non-solicitation, non-compete and non-affiliation
provisions apply regardless of whether you are eligible for severance benefits under this Agreement. 

 Robert A. Schriesheim 
 August 15, 2011 
  Page
 3
 
  

 The payments and benefits that you will receive upon termination are more fully set
forth in the Agreement. 
  

	 	•	 	 You will be eligible to receive four (4) weeks paid vacation, which will be pro-rated during your first year of service based on your start date.
Added to this, you will qualify for six (6) paid National Holidays each year. You also will be eligible for up to four (4) Personal Days per year, after completing six (6) months of service. 

 

	 	•	 	 You will be eligible to participate in all retirement, health and welfare programs on a basis no less favorable than other executives at your level, in
accordance with the applicable terms, conditions and availability of those programs. 

  

	 	•	 	 This offer is contingent upon satisfactory completion of a background reference check, employment authorization verification and pre-employment drug
test. 

 Rob, we are looking forward to you joining Sears Holdings Corporation. We are excited about the important
contributions you will make to the company. I look forward to your acceptance of our offer. If you need additional information or clarification, please call. 
 This offer will expire if not accepted within one week from the date of this letter. To accept, sign below and return this letter along with your signed Executive Severance Agreement to my attention.

 Sincerely, 
 /s/ J. David Works

 J. David Works 
 Enclosure(s)

 Accepted: 
  

					
	 /s/ Robert A. Schriesheim
	 		 	8/15/2011
	Robert A. Schriesheim	 		 	DateExecutive Severance Agreement

 Exhibit 10.3 
 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. 
 EXECUTIVE SEVERANCE
AGREEMENT 
 By this Executive Severance Agreement dated and effective as of August 16, 2011
(“Agreement”), Sears Holdings Corporation and its affiliates and subsidiaries (“Sears”), and Robert A. Schriesheim (“Executive”), intending to be legally bound, and for good and valuable consideration, agree as
follows: 
 1. Effect of Severance. 

(a) Severance Benefits. Subject to Section 5 below, if Executive is involuntarily terminated without
“Cause” or Executive voluntarily terminates Executive’s employment for “Good Reason” (as such terms are defined in Section 2 below), Executive shall be entitled to the benefits described in subsection (i) and
(ii) below (collectively referred to herein as “Severance Benefits”). Executive shall not be entitled to the Severance Benefits if Executive’s employment terminates for any other reason, including due to death or
“Disability” (as defined in Section 2 below). Executive shall also not be entitled to Severance Benefits if Executive does not meet all of the other requirements under this Agreement, including under subsection 4(g). 

i. Continuation of Salary. 

1. Sears or the appropriate “Sears Affiliate” (as defined in Section 2 below) shall pay Executive cash
severance (“Salary Continuation”) equal to: 
 A. In the event Executive’s termination of
employment (“Date of Termination”) occurs on or before the first anniversary of Executive’s employment, Executive’s annual base salary rate as of the Date of Termination; or 

B. In the event Executive’s Date of Termination occurs after the first anniversary of Executive’s employment,
Executive’s annual base salary rate as of the Date of Termination plus Executive’s target bonus for the year in which the Date of Termination occurs or, if no target bonus has been set for the year in which the Date of Termination occurs,
Executive’s target bonus for the year immediately preceding the year in which the Date of Termination has occurred. 

Notwithstanding the foregoing, in no event will the annual base salary and the target bonus determined for purposes subsections
(A) and (B) above be less than the annual base salary and the annual incentive opportunity (as set forth in the Offer Letter, as defined in Section 17), as applicable, in effect with respect to Executive as of the date of this
Agreement. 
 Subject to subsection (a)(i)(2) below, payment of the Salary Continuation amount shall commence on
Executive’s “Separation from Service” (as defined in Section 2 below) and shall be paid in substantially equal 

  
 1 

 
installments on each regular salary payroll date for a period of twelve (12) months following the Separation from Service (the “Salary Continuation Period”), except as otherwise
provided in this Agreement. 
 To the extent Executive does not execute and timely submit the General Release and Waiver (in
accordance with subsection 4(g) below) by the deadline specified therein, Salary Continuation payments shall terminate and forever lapse, and Executive shall be required to reimburse Sears for any portion of the Salary Continuation paid during the
Salary Continuation Period. 
 2. Notwithstanding anything in this subsection (a)(i) to the contrary, if the
Salary Continuation payable to Executive in accordance with subsection (a)(i)(1) above during the first six (6) months after Executive’s Separation from Service would exceed the “Section 409A Threshold” and if as of the date of
the Separation from Service Executive is a “Specified Employee” (as such terms are defined in Section 2 below), then, payment shall be made to Executive on each regular salary payroll date during the first six (6) months of the
Salary Continuation Period until the aggregate amount received equals the Section 409A Threshold. Any portion of the Salary Continuation in excess of the Section 409A Threshold that would otherwise be paid during such first six
(6) months or any portion of the Salary Continuation that is otherwise subject to Section 409A, shall instead be paid to Executive in a lump sum payment on the date that is six (6) months and one (1) day after the date of
Executive’s Separation from Service. In addition, if and to the extent that any payments or benefits to be provided to Executive hereunder or the Offer Letter are subject to Code Section 409A and payable upon Executive’s Separation
from Service, such payments or benefits shall be subject to the foregoing provisions of this subsection (a)(i)(2). 
 3. All Salary Continuation payments (described under this subsection (a)(i)) will terminate and forever lapse if Executive is employed by a “Sears Competitor” or “Sears Vendor” (as
such terms are defined in subsection 4(c)(ii) and 4(d)(ii) herein, respectively) during the Salary Continuation Period or in the event of Executive’s breach (in accordance with Section 11 below), and Executive shall be required to
reimburse Sears for any portion of the Salary Continuation paid during the Salary Continuation Period. 
 ii.
Continuation of Benefits. 
 1. During the Salary Continuation Period, Executive will
be entitled to participate in all benefit plans and programs (except as specified in this subsection (a)(ii)), as an active associate, in which Executive was eligible to participate on the Date of Termination (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 (as of the 15th day following the Date of Termination), health care flexible spending account (except

  
 2 

 
on an after-tax basis and only through the earlier of the end of Salary Continuation Period or the calendar year in which the Separation from Service occurs), Sears paid life insurance and the
Sears Holdings 401(k) Savings Plan (or any other defined contribution plan sponsored by Sears or a Sears Affiliate) during the Salary Continuation Period. Executive and Executive’s eligible dependents shall be entitled to continue to
participate, as active participants, in Sears medical and dental plans (subject to the terms and conditions and continued availability of such plans) during the Salary Continuation Period (which period shall be in addition to any COBRA continuation
coverage to which Executive and Executive’s eligible dependents may otherwise be entitled under such plans). 
 2. If Executive does not timely execute and submit the General Release and Waiver (in accordance with subsection 4(g) herein) by the deadline specified therein, Executive shall be required to reimburse
Sears for the portion of the cost for the benefits referred to under subsection (a)(ii)(1) immediately above paid by Sears during the Salary Continuation Period, and Executive and his eligible dependents shall instead be eligible for COBRA
continuation coverage under the Sears medical and dental plans as of Executive’s Separation from Service. For the avoidance of doubt, the “cost” of benefits for purposes of this Agreement is the employer-paid portion of the applicable
premium for such benefits. 
 3. Subject to subsection (a)(ii)(4) immediately below, 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 the Sears health benefit plans. 
 4. All of the benefits described in this
subsection (a)(ii) will terminate and forever lapse if Executive is employed by a Sears Competitor or Sears Vendor during the Salary Continuation Period or in the event of Executive’s breach (in accordance with Section 11 below), and
Executive shall be required to reimburse Sears for any portion of the cost for the benefits referred to under subsection (a)(ii)(1) immediately above paid by Sears during the Salary Continuation Period, and Executive and his eligible dependents
shall instead be eligible for COBRA continuation coverage under the Sears medical and dental plans as of Executive’s Separation from Service date. 
 iii. Other. 
 1 In addition to the foregoing Severance
Benefits, a lump sum payment will be made to Executive within ten (10) business days following the Date of Termination in an amount equal to the sum of any base salary and any vacation benefits that have accrued through the Date of Termination
to the extent not already paid. No vacation will accrue during the Salary Continuation Period. 

  
 3 

 2. Notwithstanding the foregoing and anything herein to the contrary, in
the event of Executive’s death during the Salary Continuation Period, any unpaid portion of the Salary Continuation payable in accordance with subsection (a)(i) above shall be paid in a lump sum, within sixty (60) days of death (and no
later than amounts would have been paid absent death), to Executive’s estate, and any eligible dependents who are covered dependents as of the date of death shall incur a qualifying event under COBRA as a result of such death. 

(b) Impact of Termination on Certain Other Plans/Programs. 

i. Annual Incentive Plan. Upon Executive’s Date of Termination, Executive’s entitlement to any award
under the applicable annual incentive plan (“AIP”) sponsored by Sears, shall be determined in accordance with the terms and conditions of the AIP document regarding termination of employment, except as otherwise provided in the Offer
Letter or in this Agreement. 
 ii. Long-Term Incentive Program(s). Upon Executive’s Date of
Termination, 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. 
 iii. Stock Plan. Upon Executive’s Date of
Termination, except as provided in subsection 5(a) below, Executive’s entitlement to any unvested options, restricted stock or other equity award granted to Executive under a stock plan sponsored by Sears shall be determined in accordance with
the terms and conditions of the applicable award agreement and the stock plan document regarding termination of employment. 
 (c) Post-Termination Forfeiture of Severance Benefits. If Sears determines after Executive’s Date of Termination that Executive engaged in activity during employment with Sears that Sears
determines constituted Cause, Executive shall immediately cease to be eligible for Severance Benefits and shall be required to reimburse Sears for any portion of the Salary Continuation paid to Executive and for the cost of other Severance Benefits
received by Executive during the Salary Continuation Period. 
 2. Definitions. For purposes of this Agreement, each
capitalized term in this Agreement is either defined in the section, exhibit or appendix in which it first appears or in this Section 2. The following capitalized terms shall have the definitions as set forth below: 

(a) “Cause” shall mean (i) Executive’s continued failure to substantially perform the job
duties (other than a failure resulting from incapacity due to Disability) which failure is not remedied in a reasonable period of time after receipt of written notice from Sears specifying such breach; (ii) a material breach by Executive of
Executive’s duties and responsibilities which breach is demonstrably willful and deliberate on 

  
 4 

 
Executive’s part, is committed in bad faith or without reasonable belief that such breach is in the best interests of Sears or the Sears Affiliates and is not remedied in a reasonable period
of time after receipt of written notice from Sears specifying such breach; (iii) the commission by Executive of a felony; or (iv) dishonesty or willful misconduct in connection with Executive’s employment. For the avoidance of doubt,
if Executive’s employment is terminated for “Cause” pursuant to subsection (iii) and it is later determined that Executive did not commit the felony which was the basis for the termination, Executive’s termination shall be
treated as not terminated for Cause unless Sears demonstrates that another basis for a Cause termination existed. 
 (b) “Disability” shall mean disability as defined under the Sears long-term disability plan (regardless of whether Executive is a participant under such plan). 

(c) “Good Reason” shall mean, without Executive’s written consent: (i) a
reduction of at least ten percent (10%) in the sum of Executive’s annual base salary and target AIP bonus from those in effect as of the date of this Agreement; (ii) a change in reporting relationship such that Executive reports to
anyone other than the Chief Executive Offer or the Chairman of the Board of Sears Holdings Corporation; (iii) after August 22, 2011, Executive no longer holding the position of Executive Vice President, Chief Financial Officer or an
equivalent or more senior position of Sears Holdings Corporation or a successor corporation; (iv) 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 as of the date of this Agreement; (v) Sears Holdings Corporation ceasing to have securities registered under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) or the equivalent
applicable law; or (vi) the 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 (or, if later, the date on which Executive first has knowledge of such facts), 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 based on the applicable facts (but shall not preclude a
claim for Good Reason based on a different occurrence or different facts). If Sears does not remedy the Good Reason event within the sixty (60) day period, and Executive does not incur a termination of 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) based on the applicable facts shall cease to exist (but shall not preclude a claim for Good Reason based on a different occurrence or different facts). 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 (or, if later, the date on which
Executive first has knowledge thereof), 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 based on the
applicable facts as of the thirty-first (31st) day
following the later of its occurrence or Executive’s knowledge 

  
 5 

 
thereof (but shall not preclude a claim for Good Reason based on a different occurrence or different facts). Notwithstanding the foregoing, to qualify as a Good Reason, any good faith
determination of Good Reason made by Executive with respect to any of the conditions listed above in this subsection 2(c) must satisfy the “material negative change” requirement under Treasury Regulations §1.409A-1(n)(2)(i), any
successor thereto and other applicable guidance. 
 (d) “Sears Affiliate” shall mean any person
with whom Sears is considered to be a single employer under Code Section 414 (b) and all persons with whom Sears would be considered a single employer under Code Section 414 (c), substituting “50%” for the “80%”
standard that would otherwise apply. 
 (e) “Section 409A Threshold” shall mean an amount equal
to two times the lesser of (i) Executive’s base salary for services provided to Sears and any Sears Affiliate as an employee for the calendar year preceding the calendar year in which Executive has a Separation from Service; or
(ii) the maximum amount that may be taken into account under a qualified plan in accordance with Code Section 401(a)(17) for the calendar year in which Executive has a Separation from Service. In all events, this amount shall be limited to
the amount specified under Treasury Regulation Section 1.409A-1(b)(9)(iii)(A) or any successor thereto. 

(f) “Separation from Service” shall mean a “separation from service” with Sears (including any
Sears Affiliate) within the meaning of Code Section 409A (and regulations issued thereunder). Notwithstanding anything herein to the contrary, the fact that Executive is treated as having incurred a Separation from Service under Code
Section 409A and the terms of this Agreement shall not be determinative, or in any way affect the analysis, of whether Executive has retired, terminated employment, separated from service, incurred a severance from employment or become entitled
to a distribution, under the terms of any retirement plan (including pension plans and 401(k) savings plans) maintained by Sears (including by a Sears Affiliate). 

(g) “Specified Employee” shall mean a “specified employee” under Code Section 409A (and
regulations issued thereunder), which shall be determined in accordance with the provisions of Supplement A to the Supplemental Retirement Income Plan (as amended and restated effective January 1, 2008). 

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 or any Sears Affiliate, provided
such invention or expression of an idea relates to the business of Sears or any Sears Affiliate, or relates to actual or demonstrably anticipated research or development of Sears or any Sears Affiliate, or results from any work performed by
Executive for or on behalf of Sears or any Sears Affiliate, 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. 

  
 6 

 4. Protective Covenants. Executive acknowledges that this Agreement provides for
additional consideration beyond what Sears or any Sears Affiliate is otherwise obligated to pay. In consideration of the opportunity for the Severance Benefits, and other good and valuable consideration, Executive agrees to the following:

 (a) Non-Disclosure of Sears Confidential Information. Executive acknowledges and agrees to be bound by
the following, whether or not Executive receives any Severance Benefits under this Agreement: 
 i.
Non-Disclosure. 
 1. Executive will not, during the term of Executive’s employment with Sears or
any Sears Affiliate or thereafter, and other than in the performance of his duties and obligations during his employment with Sears or as required by law or legal process, and 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 in subsection 4(a)(ii) below) until such time as the information becomes publicly known other than as a result of its disclosure, directly or
indirectly, by Executive in breach of this Agreement; 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 or any Sears Affiliate
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 or any Sears Affiliate, 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 or any Sears Affiliate 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 or any Sears Affiliate 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 or any Sears Affiliate and during any
Salary Continuation Period, except as may be approved in writing by Sears, neither Executive nor members of Executive’s 

  
 7 

 
immediate family (which shall refer to Executive, any spouse or any child) will have financial investments or other interests or relationships with Sears’ or any Sears Affiliate’s
customers, suppliers or competitors which might impair Executive’s independence of judgment on behalf of the Company. Also during Executive’s employment with Sears or any Sears Affiliate and during any Salary Continuation Period, Executive
agrees further not to engage in any activity in competition with Sears or any Sears Affiliate and will avoid any outside activity that could reasonably be expected to adversely affect the independence and objectivity of Executive’s judgment
with respect to Sears or any Sears Affiliate, interfere with the timely and effective performance of Executive’s duties and responsibilities to Sears or any Sears Affiliate, discredit Sears or any Sears Affiliate or otherwise conflict with the
best interests of Sears or any Sears Affiliate. 
 (b) Non-Solicitation of Employees. During
Executive’s employment with Sears or any Sears Affiliate and for twelve (12) months following Executive’s Date of Termination, whether or not Executive receives any Severance Benefits under this Agreement, Executive will not, directly
or indirectly, solicit or encourage any person to leave her/his employment with Sears or any Sears Affiliate or assist in any way with the hiring of any Sears or any Sears Affiliate employee by any future employer or other entity. 

(c) Non-Competition. Executive acknowledges that as a result of Executive’s position at Sears or any Sears
Affiliate, Executive has learned or developed, or will learn or develop, Sears Confidential Information 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 twelve (12) months following Executive’s Date of Termination, whether
or not Executive receives any Severance Benefits under this Agreement, 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 subsection (ii)(2) immediately below, and
further acknowledges that this is not an exclusive list of Sears Competitors and is not intended to limit the generality of subsection (ii)(2) immediately 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, lawn/garden, auto parts, food/consumables, toys, seasonal, fitness/sporting goods, apparel and/or pharmacy
products, or providing home improvement, product repair 

  
 8 

 
and/or home services, with combined annual revenue in excess of $1 billion, or (B) a party engaged in any other line of business, in which Sears (including any Sears Affiliate) has commenced
business prior to the end of Executive’s employment, having annual gross sales in that line of business in excess of $100 million. 
 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 (or Sears Affiliates) 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. 

(d) Restriction on Post-Employment Affiliation with Sears Vendors. Executive acknowledges that as a result of
Executive’s position at Sears or any Sears Affiliate, Executive has learned or developed, or will learn or develop, Sears Confidential Information and that use or disclosure of Sears Confidential Information is likely to occur if Executive were
to render advice or services to any “Sears Vendor” (as defined herein). 
 i. Therefore, for twelve
(12) months from Executive’s Date of Termination, whether or not Executive receives any Severance Benefits under this Agreement, 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 Vendor. 

ii. For purposes of this Agreement, “Sears Vendor” means, the vendors, if any, listed in Appendix A as
well as any vendor with combined annual gross sales of services or merchandise to Sears in excess of $200 million. 
 (e) 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, Sears Affiliates, their agents and employees, from all liability for any damage arising from any such reasonable and lawful contacts or communications. 

(f) 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 and Sears Affiliates. Executive further agrees and acknowledges that the provisions of this Agreement are reasonable.

  
 9 

 (g) General Release and Waiver. Upon Executive’s Date of
Termination (whether initiated by Sears or Executive in accordance with subsection 1(a) above or 5(a) below) potentially entitling Executive to Severance Benefits, Executive will execute a binding general release and waiver of claims in a form to be
provided by Sears (“General Release and Waiver”), which is incorporated by reference under this Agreement. This General Release and Waiver will be in a form substantially similar to the sample attached hereto as Exhibit A. Sears
shall provide Executive with the actual form of General Release and Waiver upon Executive’s Date of Termination. If the General Release and Waiver is not signed within the time required by the waiver or is signed but subsequently revoked,
Executive will not continue to receive any Severance Benefits otherwise payable under subsection 1(a) above or Section 5 below. Further, Executive shall be obligated to reimburse Sears for any portion of (i) the Salary Continuation paid
during the Salary Continuation Period under subsection (1)(a)(i) herein, and (ii) the cost for the benefits provided during the Salary Continuation Period under subsection (1)(a)(ii) herein. 

(h) Exception Request. Notwithstanding the foregoing, Executive may request a waiver or a specific exception to the
non-competition provisions of this Agreement by written request to the Senior Vice President and President, Talent & Human Capital Services or Senior Vice President, General Counsel and Corporate Secretary (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. Transfer of Shareholdings. Notwithstanding Section 1, in the event Executive’s employment with Sears is terminated on or after the date of a “Transfer of Shareholdings” (as
defined below) and Executive would otherwise be entitled to Severance Benefits, as described in Section 1, the amount of Executive’s Severance Benefits shall be supplemented as provided below: 

(a) If the Transfer of Shareholdings occurs after the first twelve (12) months of Executive’s employment with
Sears and Executive’s employment is terminated by Sears for reasons other than Cause or by Executive for Good Reason, in either case within twelve (12) months after such Transfer of Shareholdings, Executive shall vest on the Date of
Termination in any portion of any equity or equity-based award granted to Executive that is scheduled to vest within twelve (12) months following such date. 

(b) For purposes of this Agreement, “Transfer of Shareholdings” shall be defined as any of the following:

 i. the acquisition (in one transaction or a series of related transactions) by any “person” (as that
term is used in Sections 13(d) and 14(d)(2) of the Exchange Act) of beneficial ownership (within the meaning of Section 13(d) under the Exchange Act and the rules and regulations promulgated thereunder) from ESL Investments, Inc. and/or Persons
associated with ESL Investments, Inc. of shares of common stock of Sears Holdings Corporation representing fifty percent (50%) or more of the total number of then outstanding shares of common stock of Sears Holdings Corporation; provided that
any such acquisition or holding of beneficial ownership of shares of common stock of Sears 

  
 10 

 
Holdings Corporation by any underwriter temporarily holding securities pursuant to an offering of such securities any of the following entities shall not by itself constitute such a Transfer of
Shareholdings hereunder; or 
 ii. Sears Holdings Corporation ceasing to have securities registered under the
Exchange Act or the equivalent applicable law. 
 6. 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), 4(b), 4(c) and 4(d), 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 and benefits already received by Executive. 

7. Non-Disparagement. Executive will not take any actions that would reasonably be expected to be detrimental to the interests of
Sears or any Sears Affiliate, nor make derogatory statements, either written or oral to any third party, or otherwise publicly disparage Sears or any Sears Affiliate, 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. Sears shall not authorize and shall take reasonable measures to prevent its present or former officers and directors from making derogatory or
disparaging statements regarding Executive to any third party. This provision does not and is not intended to preclude Executive from entering into any relationship with a Sears Competitor or Sears Vendor after such relationship is permissible under
subsection 4(c) or 4(d), respectively, nor does it preclude Executive or Sears or any Sears Affiliate from providing truthful testimony in response to legal process or governmental inquiry. 

8. Cooperation. Executive agrees, without receiving additional compensation, to fully and completely cooperate with Sears, both
during and after the period of employment with Sears or any Sears Affiliate (including any Salary Continuation Period), with respect to matters that relate to Executive’s period of employment, 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; provided, however, that the reimbursement of any such expenses that are taxable to Executive shall be made on or before the last day of the year following the year in
which the expense was incurred, the amount of the expenses eligible for reimbursement during one year shall not affect the amount of expenses eligible for reimbursement in any other year, and the right to reimbursement shall not be subject to
liquidation or exchange for another benefit. 
 9. 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. 

10. Acting as Witness. Executive agrees that both during and after the period of employment with Sears or any Sears Affiliate
(including any Salary Continuation Period), 

  
 11 

 
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 Sears Affiliate, unless subject to judicial
enforcement to appear as a fact witness only. 
 11. Breach by Executive. In the event of a breach by Executive of the
material provisions of this Agreement, including without limitation the non-competition provisions (Section 4) and the non-disparagement provision (Section 7) of this Agreement, the obligation of Sears or any Sears Affiliate to pay Salary
Continuation or to provide other Severance Benefits under this Agreement will immediately cease and any Salary Continuation payments already received and the value of any other Severance Benefits already received will be returned by Executive to
Sears. 
 12. 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. 
 13. 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 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. 
 14. 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, termination of employment or Salary Continuation Period (if any) 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. 

15. Employment-at-Will. This Agreement does not constitute a contract of employment, and Executive acknowledges that
Executive’s employment with Sears or any Sears Affiliate is terminable “at-will” by either party with or without cause and with or without notice. 
 16. Other Plans, Programs, Policies and Practices. If any provision of this Agreement or the Offer Letter conflicts with any other plan, programs, policy, practice or other Sears document, then the
provisions of this Agreement and the Offer Letter, as applicable, 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. 
 17. Entire Agreement. This
Agreement, including any exhibits or appendices hereto, and the final offer letter issued by Sears and accepted by Executive (the “Offer Letter”) contain 

  
 12 

 
and comprise the entire understanding and agreement between Executive and Sears (including any Sears Affiliate) with respect to the subject matter contained herein or in the Offer Letter and this
Agreement and the Offer Letter fully supersede any and all prior agreements or understandings between Executive and Sears with respect to the subject matter contained herein or in the Offer Letter, and this Agreement and the Offer Letter may be
amended only by a writing signed by Executive and the Chief Executive Officer, Senior Vice President and President, Talent & Human Capital Services or Senior Vice President, General Counsel and Corporate Secretary (or equivalent) of Sears.

 18. Tax Withholding. Any 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. 
 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 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 and President, Talent & Human Capital Services

		  		  	 Senior Vice President, General Counsel and Corporate Secretary

 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. Section 409A Compliance. To the extent that a payment or benefit under this Agreement is subject to Code
Section 409A, it is intended that this Agreement as applied to that payment or benefit comply with the requirements of Code Section 409A, and the Agreement shall be administered and interpreted consistent with this intent. 

22. 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] 

  
 13 

 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
				
	 /s/ Robert A. Schriesheim
	 		 	BY:	 	 /s/ J. David Works

	Robert A. Schriesheim	 		 		 	
			
	 August 15, 2011
	 		 	 August 15, 2011

	Date	 		 	Date

  
 14 

 EXHIBIT A 
 NOTICE: YOU MAY CONSIDER THIS GENERAL RELEASE AND WAIVER FOR UP TO TWENTY-ONE (21) DAYS. YOU MAY NOT SIGN IT UNTIL ON OR AFTER YOUR LAST DAY OF WORK. 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 Sears Holdings Corporation, its current and former agents, subsidiaries, affiliates, employees, officers, stockholders, successors, and assigns (“Sears”) from any and all claims arising out of my
employment or the termination thereof. This General Release and Waiver is to be broadly construed to encompass all claims of any kind or character whatsoever, whether known or unknown, based upon any matter occurring prior to my execution of this
General Release and Waiver and including, but without limiting the generality of the foregoing, any and all claims under the Age Discrimination in Employment Act (“ADEA”), Title VII of the Civil Rights Act of 1964, Section 1981 of the
Civil Rights Act of 1866, the Americans with Disabilities Act (“ADA”), the Employee Retirement Income Security Act (“ERISA”), the Worker Adjustment and Retraining Notification Act (“WARN”), the Family and Medical Leave
Act (“FMLA”) and any other federal, state or local constitution, statute, regulation, or ordinance, and any and all common law claims including, but not limited to, claims for wrongful or retaliatory discharge, intentional infliction of
emotional distress, negligence, defamation, invasion of privacy, and breach of contract. 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 any 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, and (2) any rights or claims to
benefits accrued under benefit plans maintained by Sears pursuant to ERISA. I do, however, waive my right to any monetary recovery should any agency or other third party 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. 
 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. 

  
 Page 1 of 2

 Return both pages of the signed General Release and Waiver 

 GENERAL RELEASE AND WAIVER (continued) 

 

 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 DATE
	 		 	Signed by:	 	 SAMPLE ONLY - DO NOT SIGN

					
		 		 		 	Witness by:	 	 SAMPLE ONLY - DO NOT SIGN

  
 Page 2 of 2

 Return both pages of the signed General Release and Waiver 

			
	Executive:    Robert A. Schriesheim	 	Date:    August 15, 2011        

  
 Appendix A 

Executive Severance Agreement 
  

The following companies (including affiliates and subsidiaries within the same controlled group of corporations) are included within the
definition of “Sears Competitors”, as referred to under subsection 4(c)(ii)(1) of the Executive Severance Agreement: 

[*****] 
 [*****]
Confidential material redacted and filed separately with the Securities and Exchange Commission.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00193-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00193-of-00352.parquet"}]]