Document:

Program Agreement

 Exhibit 4.1 
 PROGRAM AGREEMENT 
 by and between 

SEARS CANADA INC. 
 and 
 SEARS CANADA BANK 

and 

JPMORGAN CHASE BANK, N.A. (TORONTO BRANCH) 
 Dated as of November 15, 2005 

 TABLE OF CONTENTS 

 

					
	  	  	Page	 
	 ARTICLE I
	  			
	 DEFINITIONS AND RULES OF CONSTRUCTION
	  			
	 1.1    Definitions
	  	 	3	  
	 1.2    Construction
	  	 	14	  
		
	 ARTICLE II
	  			
	 THE PROGRAM
	  			
	 2.1    Establishing the Program
	  	 	15	  
	 2.2    Exclusivity
	  	 	16	  
	 2.3    Transfer of Program Assets
	  	 	16	  
	 2.4    Securitization
	  	 	16	  
		
	 ARTICLE III
	  			
	 GOVERNANCE
	  			
	 3.1    Management Committee
	  	 	17	  
	 3.2    Program Considerations
	  	 	17	  
	 3.3    Responsibilities of Management Committee
	  	 	18	  
	 3.4    Management Committee Procedures
	  	 	19	  
	 3.5    Executive Committee
	  	 	19	  
	 3.6    Committee Deadlocks
	  	 	20	  
		
	 ARTICLE IV
	  			
	 MARKETING
	  			
	 4.1    Business Plan
	  	 	20	  
	 4.2    Marketing Plan Development
	  	 	20	  
	 4.3    Solicitation Materials
	  	 	21	  
	 4.4    Additional Marketing to Cardholders and Financial Products Customers
	  	 	22	  
	 4.5    Additional Products and Enhancements
	  	 	23	  
	 4.6    Data Ownership and Use
	  	 	24	  
	 4.7    Compliance with Privacy Laws
	  	 	25	  
	 4.8    Joint Marketing
	  	 	27	  
		
	 ARTICLE V
	  			
	 ACCOUNT CREATION AND ADMINISTRATION
	  			
	 5.1    Terms
	  	 	27	  

					
	 5.2    Origination Criteria
	  	 	28	  
	 5.3    Program Costs
	  	 	29	  
	 5.4    Ownership of Accounts and Financial Products Accounts
	  	 	29	  
	 5.5    Documentation
	  	 	29	  
	 5.6    Servicing
	  	 	29	  
	 5.7    Service Standards; Credit Goals
	  	 	31	  
		
	 ARTICLE VI
	  			
	 INTELLECTUAL PROPERTY
	  			
	 6.1    Use of Sears Licensed Marks
	  	 	31	  
	 6.2    Purchaser License Grant
	  	 	31	  
	 6.3    Changes to Trademark Usage
	  	 	32	  
	 6.4    Establishment of New Intellectual Property Rights
	  	 	32	  
	 6.5    Effect of Termination or Expiration of Agreement
	  	 	33	  
	 6.6    Mandatory Usage of Sears Licensed Marks
	  	 	33	  
		
	 ARTICLE VII
	  			
	 CERTAIN ARRANGEMENTS
	  			
	 7.1    Sears Fees
	  	 	33	  
	 7.2    In-Store Payments
	  	 	33	  
	 7.3    Merchant Discounts; Over-Limit Fees
	  	 	33	  
	 7.4    Discover Card Processing Services
	  	 	33	  
	 7.5    Special Credit Card Programs
	  	 	34	  
	 7.6    Rewards Programs
	  	 	34	  
	 7.7    Promotional Cards
	  	 	34	  
		
	 ARTICLE VIII
	  			
	 ADDITIONAL COVENANTS
	  			
	 8.1    Compliance with Law; Policies
	  	 	34	  
	 8.2    Cardholder Surveys
	  	 	34	  
	 8.3    Reports; Monitoring Rights
	  	 	35	  
	 8.4    Systems Interface; Mail Forwarding
	  	 	35	  
	 8.5    Acquiring New Business
	  	 	35	  
	 8.6    Disposition of Stores
	  	 	37	  
	 8.7    Special Mutual Covenant
	  	 	37	  
		
	 ARTICLE IX
	  			
	 CONFIDENTIALITY
	  			
	 9.1    Confidential Information
	  	 	37	  

  
 ii 

					
	 9.2        Protection of Confidential Information
	  	 	38	  
	 9.3        Confidentiality of Cardholder Information
	  	 	39	  
	 9.4        Permissible Disclosures
	  	 	39	  
		
	 ARTICLE X
	  			
	 REPRESENTATIONS AND WARRANTIES
	  			
	 10.1      Representations and Warranties of Purchaser
	  	 	39	  
	 10.2      Representations and Warranties of Sears
	  	 	40	  
		
	 ARTICLE XI
	  			
	 INDEMNIFICATION AND LIMITATION OF LIABILITY
	  			
	 11.1      By Sears
	  	 	40	  
	 11.2      By Purchaser
	  	 	41	  
	 11.3      Limitation of Liability
	  	 	41	  
	 11.4      Procedures for Indemnification
	  	 	41	  
		
	 ARTICLE XII
	  			
	 MERCHANT PROCEDURES
	  			
	 12.1      Extension of Credit
	  	 	43	  
	 12.2      Partner Merchants
	  	 	43	  
	 12.3      In-Store Payments
	  	 	43	  
		
	 ARTICLE XIII
	  			
	 TERM AND TERMINATION
	  			
	 13.1      Initial Term and Renewal; Proration
	  	 	44	  
	 13.2      Termination by Sears
	  	 	44	  
	 13.3      Termination by Purchaser
	  	 	45	  
	 13.4      Effective Termination Date; Effect of Notice of Termination or
Non-Renewal
	  	 	45	  
	 13.5      Provision of Information
	  	 	46	  
	 13.6      Repurchase of Assets Upon Termination or Expiration
	  	 	49	  
	 13.7      Treatment of Assets Upon Termination
	  	 	49	  
	 13.8      Other Termination Provisions
	  	 	50	  
	 13.9      Survival
	  	 	50	  
		
	 ARTICLE XIV
	  			
	 GENERAL
	  			
	 14.1      Successors and Assigns
	  	 	50	  
	 14.2      Entire Agreement
	  	 	50	  
	 14.3      Relationship of the Parties
	  	 	50	  

  
 iii

					
	 14.4      Force Majeure
	  	50
	 14.5      Books and Records
	  	50
	 14.6      Press Release
	  	51
	 14.7      Audits
	  	51
	 14.8      Change in Law; Severability
	  	51
	 14.9      Assignment
	  	51
	 14.10    Expenses
	  	52
	 14.11    Amendment and Waiver
	  	52
	 14.12    Remedies; Specific Performance
	  	52
	 14.13    Table of Contents; Headings
	  	52
	 14.14    Limitation on Rights of Others
	  	52
	 14.15    Counterparts; Effectiveness
	  	52
	 14.16    Payment Terms; Initial Periods
	  	52
	 14.17    Drafting
	  	53
	 14.18    Governing Law
	  	53
	 14.19    Taxes
	  	53
	 14.20    Jurisdiction; Consent to Service of Process
	  	53
	 14.21    Notices
	  	53
	 14.22    Escalation
	  	55

  
 iv 

 EXHIBITS 

 

			
	Exhibit A         Form of Merchant Agreement

	

  
 v 

 PROGRAM AGREEMENT 

PROGRAM AGREEMENT, dated as of November 15, 2005 (this “Agreement”), effective as of the Effective Date, by and among
Sears Canada Inc., a corporation incorporated under the laws of Canada (“Sears”), Sears Canada Bank, a Schedule I bank under the Bank Act (Canada) (“Sears Bank”) and JPMorgan Chase Bank, N.A., a national banking
association organized under the laws of the United States and a Schedule III bank under the Bank Act (Canada) (“Purchaser”). 
 RECITALS 
 WHEREAS, Sears is a multi-channel retailer with merchandising,
credit and real estate joint venture operations; 
 WHEREAS, Sears Bank has been issuing Sears proprietary cards and general
purpose credit cards; 
 WHEREAS, JPMorgan Chase (“JPMC”) and Sears have entered into the Purchase Agreement, dated as
of August 31, 2005, as amended (the “Purchase Agreement”), pursuant to which JPMC has agreed to acquire, or cause to be acquired, from Sears and Sears has agreed to sell, or cause to be sold, to Purchaser, substantially all of the
assets of the Business (as defined in the Purchase Agreement), on the terms and subject to the conditions of the Purchase Agreement; 
 WHEREAS, Sears Bank has agreed to cease issuing Sears proprietary cards and general purpose credit cards in connection with the sale of the Business to the Purchaser; 

WHEREAS, in connection with the sale of the Business pursuant to the terms of the Purchase Agreement, Purchaser has been granted the
right to issue Sears Proprietary Cards and general purpose credit cards; 
 WHEREAS, JPMC agreed to cause the Purchaser to enter
into this Agreement, and Sears agreed to enter into this Agreement pursuant to the Purchase Agreement; 
 WHEREAS, Sears Bank
has entered into certain agreements with Sears and Partner Merchants pursuant to which Sears and such Partner Merchants have agreed to accept payment with a Sears Proprietary Card and Sears Bank has transferred or arranged for the transfer by Sears
of such agreements to the Purchaser on the terms set out in this Agreement and the Purchase Agreement; 
 WHEREAS, Sears Bank
will retain the Rewards Programs and Sears will be responsible for and control the Rewards Programs, and Sears Bank will support Sears in the provision of on-going access to the Rewards Program; 

WHEREAS, each of Sears and Purchaser desires to enter into a relationship for, among other things, the issuance of Sears proprietary
cards and general purpose credit cards, the issuance of existing credit and financial and new credit and financial products to be developed with Purchaser, the processing and servicing of the related accounts and the conduct of related marketing
activities, and amounts payable hereunder are attributable to such relationship; 

 WHEREAS, Sears is currently providing certain services to Sears Bank and Sears Bank has
arranged for Sears to continue to provide such services to the Purchaser on the terms and conditions set out in this Agreement; 

WHEREAS, contemporaneously with the execution and delivery of this Agreement, Sears and Purchaser are entering into a merchant agreement,
which contains terms relating to authorizations, settlement procedures, merchandise returns, chargebacks and other operating procedures with respect to the program established hereunder, on the terms and subject to the conditions set forth in such
merchant agreement; and 
 WHEREAS, contemporaneously with the execution and delivery of this Agreement, Sears and Purchaser are
entering into a licensing agreement pursuant to which Purchaser will receive a license to use certain Sears trademarks on credit cards and financial products in connection with the program established hereunder, on the terms and subject to the
conditions set forth in such licensing agreement. 
 NOW, THEREFORE, in consideration of the premises and mutual covenants
hereinafter set forth, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby agree as follows: 

  
 2 

 ARTICLE I 
 DEFINITIONS AND RULES OF CONSTRUCTION 
 1.1 Definitions. 

“Account” means any account under which a purchase, cash advance, convenience cheque or balance transfer transaction may
be or has been made by or to a Cardholder (or any Person authorized by such Cardholder) pursuant to an Account Agreement established by Purchaser in accordance with this Agreement or any account that is an Acquired Account, and includes (i) all
of the Account Documentation related to the account; and (ii) any and all other rights, remedies, benefits, interests and titles, whether legal or equitable, to which Purchaser may now or at any time hereafter be entitled in respect of the
foregoing. 
 “Account Agreement” means an account agreement (including related disclosures) between the
Purchaser and a Cardholder governing the terms and conditions of an Account, as such agreement may be amended, modified or otherwise changed from time to time (including pursuant to change of terms notices). 

“Account Application” means a completed credit application successfully submitted in order to establish an Account.

 “Account Documentation” means any and all documentation relating to an Account, however stored or kept,
including Account Applications, Account Agreements, charge slips, related billing statements, card carriers and statement envelopes, and any other written or electronic documentation relating to a specific Account (other than Credit Policy or
Financial Products Policy). 
 “Account Terms” has the meaning set forth in Section 5.4(a). 

“Accounts Receivable” means all amounts owing on an Account, including principal balances from outstanding purchases,
balance transfers, convenience checks, cash advances, accrued service charges (whether billed or unbilled), late charges and any other charges and fees assessed on the Account, less any payments and credits received in respect of the Account as of
the close of business on any Business Day. 
 “Acquired Account” means a Sears Credit Card account in existence
as of the Effective Date and acquired by Purchaser under the Purchase Agreement. 
 “Acquisition Acts” has the
meaning set forth in Section 13.2(f). 
 “Additional Products” has the meaning set forth in
Section 4.5. 
 “Affiliate” of any Person means any other Person that directly or indirectly controls, is
controlled by or is under common control with, such Person. The term “control” (including its correlative meanings “controlled by” and “under common control with”) means possession, directly or indirectly, of the power
to direct or cause the direction of management or policies (whether through ownership of securities, partnership or other ownership interests, by contract or otherwise). 

  
 3 

 “Agreement” has the meaning set forth in the preamble hereto. 

“Applicable Standards” has the meaning set forth in Section 2.1(b). 

“Attributable Assets” has the meaning set forth in Section 8.6(a). 

“Bankruptcy Event” means, with respect to any Person, the occurrence or existence of any of the following events: such
Person (i) admits its inability to pay its debts generally as they become due or otherwise acknowledges its insolvency; (ii) institutes any proceeding or takes any corporate action or executes any agreement to authorize its participation
in or commencement of any proceeding: (A) seeking to adjudicate it a bankrupt or insolvent; or (B) except as part of a good faith reorganization, seeking liquidation, dissolution, winding-up, reorganization, arrangement, protection, relief
or composition of it or any of its property or debt or making a proposal with respect to it under any law relating to bankruptcy, insolvency, winding-up, reorganization or compromise of debts or other similar laws (including any application under
the Companies’ Creditors Arrangement Act (Canada), any reorganization, arrangement or compromise of debt under the laws of its jurisdiction of incorporation; or any proceeding under the Winding-Up and Restructuring Act (Canada); (iii) any
proceeding is commenced against or affecting it: (A) seeking to adjudicate it a bankrupt or insolvent; (B) seeking liquidation, dissolution, winding-up, reorganization, arrangement, protection, relief or composition of it or any of its
property or debt or making a proposal with respect to it under any law relating to bankruptcy, insolvency, reorganization or compromise of debts or other similar laws (including any reorganization, arrangement or compromise of debt under the laws of
its jurisdiction of incorporation); (C) seeking appointment of a receiver, trustee, agent, custodian, or other similar official for it or for any substantial part of its properties and assets, and such proceeding is not being contested in good
faith by appropriate proceedings or, if so contested remains outstanding, undismissed and unstayed more than 60 days from the institution of such first mentioned proceeding; (iv) any creditor shall privately appoint a receiver, trustee or
similar official for any substantial part of its properties and assets, and such appointment is not being contested in good faith and by appropriate proceedings or, if so contested, such appointment continues for more than 60 days; (v) any
proceeding or action by a Governmental Authority to take control of it or its assets; (vi) any event occurs with respect to it that, under the applicable Law of any jurisdiction, has an analogous effect to any of the events specified in clauses
(i) through (v) above; or (vii) takes any action in furtherance of, or indicating its consent to, approval of, or acquiescence in, any of the acts or events specified in clauses (i) through (vi) above. 

“Business Day” means any day other than a Saturday, Sunday or a day on which banking institutions in Ontario or New York
City are authorized or obligated by law to be closed. 
 “Business Plan” has the meaning set forth in
Section 4.1. 
 “Card Association” means MasterCard International, Inc. or any successor thereto as of the
date hereof, and, in the case of any Additional Products, any other applicable card association (e.g., Visa International Inc.). 
 “Cardholder” means the authorized holder of a Sears Credit Card. 

  
 4 

 “Cardholder Information” means the Cardholder List and any Personal
Information and transaction and experience information with respect to Cardholders and Financial Products Customers processed by, or maintained on, the information systems operated by or on behalf of Purchaser or its Affiliates or agents.

 “Cardholder List” means any list (whether in hard copy, magnetic tape format or other form) identifying
Cardholders and Financial Products Customers, including any list of the names, addresses, telephone numbers, and other personally identifiable information of any or all Cardholders and Financial Products Customers. 

“Change in Law” means the enactment or promulgation of a new Law or any change, in, repeal of or amendment to, any Law
that occurs on or after the Effective Date. 
 “Closing” has the meaning assigned to such term under the
Purchase Agreement. 
 “Co-Branded Account” means an Account originated under this Agreement, or an Acquired
Account, with respect to a Sears Co-Branded Card. 
 “Combination” means: 

(i) a transaction or a series of related transactions in which a Person or group acquires beneficial ownership of (A) 50% or more of
either the then-outstanding common shares (the “Outstanding Common Stock”) of the applicable party hereto or the combined voting power of the then-outstanding voting securities entitled to vote generally in the election of directors (the
“Outstanding Voting Securities”) of the applicable party hereto or (B) more than 50% of the consolidated assets of the applicable party hereto as of its most recent available consolidated balance sheet; or 

(ii) a purchase, sale, reorganization, merger, consolidation or similar transaction (each a “Business Combination”)
involving a party hereto unless, following such Business Combination, all or substantially all of the Persons who were the beneficial owners, respectively, of the Outstanding Common Stock and Outstanding Voting Securities immediately prior to such
Business Combination beneficially own (in the same proportion as prior to such transaction), directly or indirectly, the Outstanding Common Stock and Outstanding Voting Securities, as the case may be, of the corporation resulting from such Business
Combination (including, without limitation, a corporation which as a result of such transaction owns the applicable party or all or substantially all of the applicable party’s assets, either directly or through one or more subsidiaries).

 “Combination Conflicting Agreement” has the meaning set forth in Section 13.2(d). 

“Combining Person” has the meaning set forth in Section 13.2(d). 

“Confidential Information” has the meaning set forth in Section 9.1. 

“Cost” means Purchaser’s actual direct cost (without an allocation of overhead) relating to the applicable services
being provided. 

  
 5 

 “Credit Card” means a credit card pursuant to which card the holder or
authorized user may purchase goods and services, obtain cash advances or convenience cheques, and transfer balances through open-ended revolving credit, commonly known as a credit, store or charge card; provided, that the term does not
include (i) any debit card that does not provide the holder with the ability to obtain credit other than through an overdraft line; (ii) any card commonly known as a smart card or stored value card that does not provide the holder with the
ability to obtain credit other than through an overdraft line; (iii) any secured card, including a card that is secured by a Lien on real property or on improvements or on fixtures on real property, or by a deposit; (iv) any card issued to
the holder of a securities brokerage account that allows the holder to obtain credit through a margin account; (v) any gift card; or (vi) any other electronic or digital cash card or account that does not provide the holder thereof the
ability to obtain credit other than through an overdraft line; provided, further, that no card will be considered a “Credit Card” solely because such card allows the holder to access a line of credit tied to a deposit account
for overdraft protection. 
 “Credit Goals” means the standards and goals applicable to the provision or
performance of the Program that are set forth in Schedule A of the Disclosure Letter. 
 “Credit Limit” means,
at any time, the maximum amount of credit last disclosed to a Cardholder and that will be extended to such Cardholder under an Account, as established in accordance with the Credit Policy. 

“Credit Policy” means the collective practices, policies and procedures of Purchaser regarding underwriting and account
management, including (i) origination of Accounts and extension of credit (including underwriting, collections and fraud criteria), Credit Limit assignments, credit terms, annual percentage rates, fees, and all other terms of the Account
Agreements; and (ii) and portfolio management terms. 
 “Credit Protection Products” means the products
set forth in Schedule B of the Disclosure Letter and labeled “Credit Protection Products,” as may be modified from time to time, in accordance with the Program Related Agreements. 

“Decline” has the meaning set forth in Section 4.5(d). 

“Deferred Financing” means a promotional credit offer under which purchases of Merchandise may be financed at 0%
interest (including through any installment sales), subject to any applicable terms of the offer. 
 “De Minimis
Difference” has the meaning set forth in Section 13.5(c). 
 “Direct Marketing” means Sears’
business of promoting goods and services to Cardholders and Sears Customers through Sears Statement Inserts, Sears Solo Mailings, digest catalogues, continuity programs or otherwise. 

“Disclosure Letter” means the Disclosure Letter being delivered by the parties in connection with this Agreement.

  
 6 

 “Discover Processing Services” means the processing services for the
Discover Card in Canada set forth in Schedule B of the Disclosure Letter. 
 “Disposed Stores” has the meaning
set forth in Section 8.6(a)(i). 
 “Effective Date” means the Closing Date under the Purchase Agreement.

 “Executive Committee” has the meaning set forth in Section 3.5. 

“Excluded Financial Products” means the Third Party Insurance Products, the Membership Programs, SearsConnect and Direct
Marketing. 
 “Fair Market Value” has the meaning set forth in Section 13.5(c). 

“Financial Product Partners” means third parties with whom Sears or its Subsidiaries has contracted for such third
parties to provide insurance in connection with Third Party Insurance Products. 
 “Financial Products” means
the Credit Protection Products and any Additional Product designated as Financial Products pursuant to Section 4.5(a) and shall exclude each Excluded Financial Product. 
 “Financial Products Agreement” means the contract between a Financial Products Customer and the Purchaser or any of its Affiliates or third party providers, as provider of the Financial
Products. 
 “Financial Products Customer” means a holder of any Financial Product. 

“Financial Products Documentation” means any and all documentation relating to a Financial Product account, however
stored or kept, including the Financial Products Agreements and any other written or electronic information relating to a Financial Product account. 
 “Financial Products Policy” means Purchaser’s practices, policies and procedures regarding the Financial Products, as the case may be. 

“General Financial Services Products” means any financial services or products, deposit products, mortgage products,
insurance products and services, credit protection products; for the avoidance of doubt, ATM machines (and any successor concept) shall not be considered General Financial Services Products hereunder; provided, that such definition shall not include
New Payment Cards, Credit Cards, Merchandise, or any warranty, protection plan or insurance product relating to goods and services or any home warranty program. 
 “General Purpose Credit Cards” means Credit Cards that may be used to purchase goods and services from providers of goods and services in general (as distinguished from Credit Cards that
may only be used to make purchases from one Person or category of Persons), and shall expressly exclude proprietary and other enterprise-specific credit cards (such as the Sears Proprietary Cards). 

  
 7 

 “Governmental Authority” means any government, parliament, legislature, or
any regulatory authority, agency, commission, board or rulemaking entity of any government, parliament or legislature, or any court of (without limitation to the foregoing) and other law, regulation or rulemaking entity (including any central bank,
fiscal or monetary authority or authority regulating banks), having or purporting to have jurisdiction in the relevant circumstances, or any Person acting or purporting to act under the authority of any of the foregoing (including any arbitrator).

 “In-Store Payment” means a payment on or related to an Account made by a Cardholder (or any Person acting on
behalf of such Cardholder) at a Store (other than through the internet). 
 “Indemnified Party” has the meaning
set forth in Section 11.3(a). 
 “Indemnifying Party” has the meaning set forth in Section 11.3(a).

 “Independent Appraiser” means a nationally recognized investment banking firm or firm of chartered
accountants that is experienced in the business of appraising Credit Card businesses or receivables, and that does not have a conflict with respect to its contemplated role and is not either party’s principal auditor(s). 

“Initial Expiration Date” has the meaning set forth in Section 13.1. 

“Intellectual Property” means all (i) copyrights, whether or not registered, and registrations and applications for
registration thereof; (ii) Patents; (iii) Marks; (iv) common law and statutory trade secrets, inventions, whether or not patentable and whether or not reduced to practice; (v) technical and business information, including
know-how, manufacturing and production processes and techniques, research and development information, technical data, financial, marketing and business data, pricing and cost information, business and marketing plans and customer and supplier lists
and information, whether or not confidential; (vi) Software; (vii) all licenses (including Software licenses, other than licenses for standard, readily-available Software programs) relating to the foregoing; and (viii) all rights to
sue or recover and retain damages and costs and attorneys’ fees for past, present, and future infringement or breach on any of the foregoing. 
 “Interchange Fees” means the interchange fees or interchange reimbursement fees paid or payable to the Purchaser by the Card Association with respect to the Accounts, in the
Purchaser’s capacity as a Credit Card issuer, and in connection with Cardholder usage of the Accounts. 

“Law” means, with respect to any Person, property, transaction, event or course of conduct, all applicable laws,
statues, rules, by-laws and regulations, regulatory policies and all applicable official directives, orders, judgments and decrees of Governmental Authorities or Card Association. 

“Licensed Territory” means Canada. 

  
 8 

 “Licensing Agreement” means the Licensing Agreement by and among Sears and
Purchaser, to be entered into at the Closing. 
 “Lien” means any mortgage, lien, pledge, assignment, charge,
security interest, lease intended as security, title retention agreement, rights reserved in any Governmental Authority, registered lease of real property, hypothec, levy, execution, seizure, attachment, garnishment or other similar encumbrance and
includes and contractual restriction which, if contravened may give rise to an encumbrance. 
 “Losses” means
all out-of-pocket costs, damages, judgments, penalties, fines, losses and expenses, including reasonable attorneys’ fees, disbursements and court costs; provided, that “Losses” shall not include special, indirect, punitive or
incidental damages or damages for lost profits or any other consequential damages or damages based on multiples or similar valuation techniques. 
 “Major Credit Event” means any Major Credit Event identified as such in the Credit Goals in Schedule A of the Disclosure Letter. 

“Major Service Event” means any Major Service Event identified as such in the Credit Goals in Schedule C of the
Disclosure Letter. 
 “Management Committee” has the meaning set forth in Section 3.1. 

“Mark” means any trademark, brand, service mark, certification mark, trade, name, business name, slogan, logo, Internet
domain name, or other indicia of origin, whether or not registered, and registrations and applications for registrations thereof. 
 “Marketing Budget” has the meaning set forth in Section 4.2(d). 
 “Marketing Plan” has the meaning set forth in Section 4.2(a). 
 “Membership Programs” means the fee-based loyalty membership programs described in Schedule D of the Disclosure Letter, as may be modified from time to time. 

“Merchandise” means those goods and services (including wares, merchandise, products, accessories, delivery services,
protection agreements, warranties, gift cards and gift certificates and shipping and handling) sold or rendered from time to time after the Effective Date by Sears, its Subsidiaries and Third Party Sears Merchants; it being understood that for
purposes of any calculation of Merchandise amounts, all taxes applicable to sales of Merchandise shall be included. 

“Merchant Agreement” means the Merchant Agreement, dated as of the Effective Date, by and between Sears and Purchaser,
in the form attached as Exhibit A. 
 “Merchant Discount” means a discount rate generally applied against
settlements due to a merchant for transactions with respect to the use of a Credit Card, which includes the Interchange Fee as well as any other transaction fees. 

  
 9 

 “More Favoured Program” has the meaning set forth in Section 5.1(a).

 “New Business” has the meaning set forth in Section 8.5(a). 

“New Intellectual Property” has the meaning set forth in Section 6.4. 

“New Payment Cards” means any payment card, other than a Credit Card, that may be used to purchase Merchandise,
(e.g., debit cards). 
 “New Portfolio” has the meaning set forth in Section 8.5(a). 

“Operating Policies” has the meaning set forth in Section 2.1(b). 

“Organizational Documents” means the articles of incorporation and by-laws (or any equivalent organizational documents)
of a Person. 
 “Parent” means JPMorgan Chase & Co. 

“Partner Merchants” means the Third Party Sears Merchants and the Third Party Non-Sears Merchants. 

“Patents” means patents, patent applications, provisional applications, including reissues, divisions, continuations,
continuations-in-part, extensions and reexaminations thereof, and all improvements thereto. 
 “Person” means
any individual, partnership, limited partnership, joint venture, syndicate, sole proprietorship, company or corporation with or without share capital, unincorporated association, trust, trustee, executor, administrator or other legal personal
representative, regulatory body or agency, government or governmental agency, authority or entity however designated or constituted. 
 “Personal Information” means information about an identifiable individual or other information that is subject to any Privacy Law. 

“Post-Termination Period” has the meaning set forth in Section 13.6(b). 

“Privacy Laws” means any Law relating to the collection, use, storage and/or disclosure of information about an
identifiable individual, including the Personal Information and Protection of Electronic Documents Act (Canada) and equivalent provincial legislation. 
 “Program” has the meaning set forth in Section 2.1(a). 

“Program Period” has the meaning set forth in Section 4.2(a). 

“Program Plans and Policies” means the (i) Marketing Plan; (ii) Credit Policy; (iii) Servicing Policy;
and (iv) Financial Products Policy. 

  
 10 

 “Program Products” means, as of any date, the then-existing Sears
Proprietary Cards, Sears Co-Branded Cards, Financial Products and any Additional Products that have been approved in accordance with this Agreement. 
 “Program Related Agreements” means this Agreement, the Disclosure Letter, the Licensing Agreement and the Merchant Agreement. 

“Proprietary Account” means an Account originated under this Agreement, or an Acquired Account, with respect to a Sears
Proprietary Card. 
 “Prospect Data” has the meaning set forth in Section 4.6(a). 

“Purchase Agreement” has the meaning set forth in the recitals hereto. 

“Purchaser” has the meaning set forth in the preamble hereto. 

“Purchaser Licensed Marks” has the meaning set forth in Section 6.2. 

“Purchaser Material Adverse Effect” means any change, event or effect that is, or would reasonably be expected to be,
individually or in the aggregate, materially adverse to (i) the business, assets, financial condition, or results of operations of Purchaser (which shall include Purchaser’s or Parent’s failure to maintain a senior unsecured long-term
debt rating of at least A-from Standard & Poor’s Ratings Services and at least A3 from Moody’s Investors Service, Inc.); or (ii) the ability of Purchaser to consummate the transactions contemplated by, or to perform its
obligations under, the Program Related Agreements. 
 “Purchaser Policy” means Purchaser’s then-current
policies regarding the production and use of personal information. 
 “Repurchase Agreement” has the meaning
set forth in Section 13.5(d). 
 “Repurchase Closing Date” has the meaning set forth in
Section 13.4(b). 
 “Repurchase Option” means Sears’ option to purchase the Sears Repurchase Assets,
as set forth in Section 13.5(a). 
 “Repurchase Price” has the meaning set forth in Section 13.5(c).

 “Rewards Programs” means the programs for each of the Sears Proprietary Card and Sears Co-Branded Card set
forth in Schedule E of the Disclosure Letter, as may be amended or replaced from time to time. 
 “Sales Taxes”
has the meaning set forth in Section 14.19. 
 “Scheduled Repurchase Price” has the meaning set forth in
Section 13.5 of the Disclosure Letter. 
 “Sears” has the meaning set forth in the preamble hereto.

  
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 “Sears Billing Messages” has the meaning set forth in Section 4.4(c).

 “Sears Card Events” means sales promotion events during which Sears offers discounts on credit purchases
available only to customers with a Sears Credit Card (e.g., double reward points). 
 “Sears Co-Branded
Card” means the Sears MasterCard issued pursuant to an Account; provided, that “Sears Co-Branded Card” shall include any additional credit card that may, from time to time, be an Additional Product that is designated by
Sears and Purchaser as a “Sears Co-Branded Card” pursuant to Section 4.5(a). 
 “Sears
Competitors” means a (i) retailer in Canada selling general merchandise with a network of 20 stores or more, or (ii) a business providing home services with revenues greater than $25 million. 

“SearsConnect” means the sale of long distance plans, wireless, Internet, high-speed Internet, voice over Internet
Protocol (VOIP) and paging services and any other telecommunications business conducted from time to time by SearsConnect Inc. or its Subsidiaries and all Sears Credit Card usage associated therewith. 

“Sears Credit Card” means a Sears Proprietary Card or a Sears Co-Branded Card. 

“Sears Customers” means customers of Sears, any of its Subsidiaries or Third Party Sears Merchants. 

“Sears Fees” has the meaning set forth in Section 7.1. 

“Sears Licensed Marks” has the meaning set forth in the Licensing Agreement. 

“Sears Policy” has the meaning set forth in Section 4.6(a). 

“Sears Proprietary Card” means the Sears Card, which is the proprietary credit card for purchases of Merchandise issued
to Sears Customers pursuant to an Account; provided, that “Sears Proprietary Card” shall also include any additional Credit Card that may, from time to time, be an Additional Product that is designated by Sears and Purchaser as a
“Sears Proprietary Card” pursuant to Section 4.5(a). 
 “Sears Repurchase Assets” has the meaning
set forth in Section 13.5(a). 
 “Sears Solo Mailings” has the meaning set forth in Section 4.4(b).

 “Sears Statement Inserts” has the meaning set forth in Section 4.4(a). 

“Sears Transaction Data” means any Personal Information and transaction and experience information collected by or on
behalf of Sears or its Subsidiaries in connection with the purchase or return of Merchandise. 

  
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 “Securitization Transaction” means (i) the securitization
transactions and all related documentation existing on the Effective Date between Sears, Sears Bank Canada and SCORE Trust, and (ii) any securitization transactions entered into after the Effective Date by the Purchaser and others on terms and
conditions similar to the securitization transactions referred to in clause (i) subject to prevailing market conditions at the time such transactions are entered into. 
 “Senior Officers” has the meaning set forth in Section 14.22(a). 
 “Service Standards” means the quality and service standards, respectively, applicable to the provision or performance of the Servicing Policy, that are set forth in Schedule C of the
Disclosure Letter. 
 “Servicing Policy” means the collective practices, policies and procedures of Purchaser
regarding servicing of Accounts (including customer service, billing, collection and other activities, but excluding the Credit Policy), as the same may from time to time be in effect. 

“Software” means computer software, including all programs and applications (whether in object code, source code or
other form) and documentation related thereto. 
 “Solicitation Materials” means the advertisements, brochures,
applications, marketing materials, telemarketing scripts, Internet writings, billing envelopes and other written, electronic or recorded materials relating to the Program, including point of sale displays, television advertisements, radio
advertisements, Internet advertisements and other advertisements for such Program, the Sears Credit Cards or Financial Products in any media, and any other solicitation materials sent to Cardholders, Financial Products Customers or other Persons
relating to the Program. 
 “Stores” means the stores operated by Sears or its Subsidiaries from time to time
(including licensee departments within). The term “stores” above shall also include any location or operation that sells goods and services by mail order, door-to-door or over the telephone or Internet (including through third party
Internet portals to which one or more of the aforementioned Stores operated by Sears are linked), including www.sears.ca. 

“Subsidiary” of any Person means any other Person (i) more than 50% of whose outstanding shares or securities
(representing the right to vote for the election of directors or other managing authority) are beneficially owned directly or indirectly; or (ii) that does not have outstanding shares or securities (as may be the case in a partnership, joint
venture or unincorporated association), but more than 50% of whose ownership interest representing the right to make decisions for such other Person is now or hereafter beneficially owned, directly or indirectly, by such Person, but such other
Person shall be deemed to be a Subsidiary only so long as such beneficial ownership or control exists. 

“Successor” means, with respect to any party, any successor, including any surviving or resulting corporation in a
merger or consolidation or any receiver, debtor in possession, trustee, conservator or similar Person with respect to such party or such party’s assets. 

  
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 “Term” means the initial term and any renewal term, subject to earlier
termination under Section 13.2 or 13.3 or extension under Section 13.6. 
 “Termination Date” has the
meaning set forth in Section 13.4(a). 
 “Third Party Insurance Products” means the insurance products set
forth in Schedule D of the Disclosure Letter, as may be modified from time to time. 
 “Third Party Non-Sears
Merchants” means merchants that accept a Sears Proprietary Card for purchases of goods and services offered by such merchants and who are not licensees of Sears in connection with the sale of their goods and services; the list of such
Persons as of the date hereof is set forth in Schedule F of the Disclosure Letter, under the caption “Third Party Non-Sears Merchants.” 
 “Third Party Sears Merchants” means any third party licensee of Sears which has entered into an agreement with Sears or any of its Subsidiaries pursuant which such third party may accept
payment with any Sears Proprietary Card; the list of such Persons as of the date hereof is set forth in Schedule F of the Disclosure Letter, under the caption “Third Party Sears Merchants.” 

“Transition Services Agreement” means the Transition Services Agreement by and between Sears and Purchaser, to be
entered into at the Closing. 
 “Transfer” means any transfer, sale, assignment, conveyance, issuance, license,
sublicense or other disposal or delivery, including by merger, consolidation, dividend or distribution, whether made directly or indirectly, voluntarily or involuntarily, absolutely or conditionally, or by operation of law or otherwise. 

“Vendor” has the meaning set forth in Section 14.19. 

1.2 Construction. References in this Agreement to any gender include references to all genders, and references in this Agreement
to the singular include references to the plural and vice versa. Unless the context otherwise requires, the term “party”, when used in this Agreement, means a party to this Agreement; the term “party”, when used to refer to a
party other than Purchaser, means Sears. References in this Agreement to a party or other Person include their respective Successors and assigns. The words “include,” “includes” and “including” when used in this
Agreement shall be deemed to be followed by the phrase “without limitation.” Unless the context otherwise requires, references in this Agreement to Articles, Sections, Exhibits and Schedules, if any, shall be deemed references to Articles
and Sections of, and Exhibits and Schedules to, this Agreement. Unless the context otherwise requires, the words “hereof,” “hereby” and “herein” and words of similar meaning when used in this Agreement refer to this
Agreement in its entirety and not to any particular Article, Section or provision of this Agreement. References in this Agreement and the Disclosure Letter to amounts or dollars shall be deemed to be references to Canadian dollars. 

  
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 ARTICLE II 
 THE PROGRAM 
 2.1 Establishing the Program. 

(a) Sears Bank agrees that on the Effective Date it will cease issuing Sears Credit Cards. Sears and Purchaser hereby establish in the
Licensed Territory the program (the “Program”), on the terms and conditions set forth in the Program Related Agreements, pursuant to which (a) Purchaser shall directly or through one or more of its Affiliates that are
Subsidiaries of the Parent offer, issue and service, as payment for Merchandise (and other good and services, in the case of Third Party Non-Sears Merchants), Sears Credit Cards in compliance with the purchase authorization and other operating
procedures set forth in the applicable merchant agreement, and Sears shall accept, and cause its Subsidiaries to accept the same; (b) Purchaser shall directly or through one or more of its Affiliates (that are Subsidiaries of the Parent) offer,
provide and service Financial Products; and (c) Purchaser shall offer, provide and service any Additional Products, in each case to Sears Customers, Cardholders and Financial Products Customers; it being understood that the term
“Program” shall not refer to any business of Sears that was not purchased by Purchaser pursuant to the Purchase Agreement (e.g., merchandising and real estate operations and Excluded Financial Products) and that nothing in this Agreement
shall infringe on the right of Sears or its Affiliates to conduct all aspects of their respective businesses in their sole discretion, including their right to close, sell or convert one or more existing Stores. All Acquired Accounts and Financial
Products being provided by Sears as of the Effective Date are deemed provided under the Program. Purchaser will continue to provide the Sears Credit Cards and to provide or offer Financial Products on terms similar in all material respects to the
current terms of such products and programs (including as modified by the Program Related Agreements), unless and until such terms are modified or superseded in accordance with the Program Related Agreements. 

(b) On the Effective Date, Sears shall continue to operate under existing Store operating policies relating to credit operations
(“Operating Policies”), provided that Sears may in its discretion change such policies at any time thereafter. In the event that Sears desires to change its Operating Policies in a manner that it reasonably believes would likely
have a materially adverse impact on the Program (taking into account any benefits to be derived from replacement policies), it shall notify the Management Committee for its discussion, provided that such notice does not have to precede the
action and the Management Committee shall not have any approval or veto rights over such proposed actions. In the event such changed Operating Policies have caused the failure of Purchaser to meet the standards set forth in the Credit Goals and
Service Standards (and similar standards, if any, set forth in the Agreement) (the “Applicable Standards”), then Purchaser’s obligations to make payments (and Sears’ termination rights with respect to Major Credit Events
or Major Service Events) shall be temporarily suspended and the parties (either through the Management Committee or otherwise) agree (i) for a period of 30 days to discuss in good faith ways to amend, revise or adopt Operating Policies or the
business practices of the Purchaser that would permit Purchaser to meet the Applicable Standards or (ii) if the parties cannot agree on such amendment, revision or adoption, to determine as soon as reasonably practicable (but in no event later
than 30 days later) amendments to the Applicable Standards that are needed as a result of the change in Sears Store operating policies. 

  
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 2.2 Exclusivity. (a) Unless Purchaser agrees otherwise in writing or as
contemplated by Sections 8.5 or 4.5, or Article XIII, during the Term, Sears and its Subsidiaries shall not by themselves or in conjunction with others, directly or indirectly offer or issue, or enter into agreements providing for the marketing,
offering or issuing, of any Credit Card; provided, however, that, nothing herein shall prohibit Sears and its Subsidiaries from engaging in any of the following activities: (i) providing credit to Merchandise vendors;
(ii) accepting third party Internet payment services for the purchase of goods and services; (iii) entering into or maintaining agreements for a Sears company purchasing card (including fleet cards); (iv) entering into agreements to
provide payroll and reimbursement cards for Sears employees; and (v) offering Excluded Financial Products and carrying on business associated therewith. Notwithstanding anything to the contrary contained herein, there shall be no limit on the
ability of Sears or its Subsidiaries to (A) partner with any Person with respect to redemption of such Person’s rewards program points for Merchandise provided that the relationship does not result in a material adverse effect on the
Program (considered in the aggregate) unless prior to the commencement thereof, the Management Committee has expressly authorized such activity; (B) accept any credit card product or other payment method as payment for Merchandise;
(C) offer or accept in any way any gift card; (D) offer for sale as Merchandise any card, other than a Credit Card, or product (e.g., prepaid phone cards) that is generally sold at retail; (E) operate any asset existing on the
Effective Date that was not purchased by Purchaser pursuant to the Purchase Agreement. 
 (b) Unless Sears agrees otherwise in
writing, Purchaser and its Affiliates shall not (i) directly or indirectly (including on behalf of other Persons) target Sears Customers or solicit Cardholders or Financial Products Customers for any product (including any Credit Cards, General
Financial Services Products or retail merchandise and services not provided by Sears and its Subsidiaries) that is not a Program Product or (ii) use any Cardholder Information, or any other information obtained from Sears or its Affiliates in
connection with the Program, for any purpose other than to carry out its obligations in connection with the Program, or as otherwise permitted herein, and shall not use such information to engage in any marketing efforts. Notwithstanding anything to
the contrary contained herein, Purchaser may advertise or market other Credit Cards, products, and services to persons whose names appear on lists obtained by Purchaser from other sources including from Purchaser’s other co-brand and affinity
card relationships, provided that no Cardholder Information or other information obtained in connection with the Program was used as one or more criteria for inclusion on such lists. 

2.3 Transfer of Program Assets. Unless Sears agrees otherwise in writing, Purchaser shall not Transfer or agree to Transfer to any
third party all or any portion of the assets that constitute the Sears Repurchase Assets at any given time, other than bad debt sold to collection agencies in the ordinary course of business; provided, however, that, Purchaser may
(i) securitize the Accounts or the Accounts Receivables included therein pursuant to a Securitization Transaction and (ii) sell real property, equipment, furniture, fixtures and other tangible personal property that is not reasonably
needed to conduct the Program. 
 2.4 Securitization. Despite any other provision of this agreement, nothing in this
Agreement shall restrict or prohibit the Purchaser and its Affiliates from entering into and performing its obligations and exercising its rights under Securitization Transactions. 

  
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 ARTICLE III 
 GOVERNANCE 
 3.1 Management Committee. The ongoing operations of the
Program shall be reviewed by a Management Committee (the “Management Committee”), whose decisions (on matters on which the Management Committee has authority to act) shall be binding on Purchaser and Sears. The Management Committee
shall consist of ten members (and any number of additional observers as the parties may agree), with five members appointed by each of Sears and Purchaser and reasonably acceptable to the other. Each party shall have the right to remove or replace
its appointees for any reason at any time, and to fill any vacancy with respect to any of its appointees. The Management Committee may appoint one or more subcommittees and special committees to assume specific responsibilities. The initial
membership of the Management Committee is set forth in Section 3.1 of the Disclosure Letter. 
 3.2 Program
Considerations. The Management Committee shall, in undertaking its responsibilities hereunder, further the following guiding principles: 
 (a) increasing the overall level of customer satisfaction experienced by Cardholders; 
 (b) creating a successful, growing proprietary card program and a successful, growing co-branded card program; 
 (c) increasing Sears Credit Card penetration and credit share among Sears Customers; 
 (d) providing a high-level brand experience and quality of service for Cardholders, Financial Products Customers and Sears Customers; 

(e) supporting Sears’ efforts to increase sales of Merchandise and to increase the level of credit sales and overall profitability
with respect thereto; 
 (f) providing credit to Sears Customers at approval and authorization rates and on terms consistent
with the Credit Goals; 
 (g) working together to develop new and enhanced financial products and services that combine the
services and capabilities of both Purchaser and Sears so as to increase profitability for each of the parties; and 
 (h) to
ensure that the Program and all related activities are at all times conducted in a safe and sound manner and in accordance with all applicable Law. 

  
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 3.3 Responsibilities of Management Committee. The Management Committee shall have
primary responsibility for reviewing the ongoing operation of the Program and for any other item that, pursuant to any express provision of the Program Related Agreements, requires its action, including: 

(a) Monthly review of the ongoing operation of the Program, including: 

(i) significant changes to Account Documentation; 

(ii) new Account approval and authorization rates; 

(iii) monitoring actual marketing results as compared to milestones and expectations; 

(iv) reviewing services, products and marketing activities which compete with the Program; 

(v) identifying the implications of market trends; 

(vi) resolving issues between Sears and Purchaser relating to the Program; 

(vii) discussing major systems projects, including changes to Sears’ point of sale systems; 

(viii) reviewing and evaluating results of credit promotions; 

(ix) monitoring Purchaser’s performance relative to confidentiality, the Service Standards, credit sales volume and
credit penetration; 
 (x) monitoring to ensure that all electronic interfaces (e.g., web site design,
electronic communication) with Cardholders and Financial Products Customers are consistent with the principles of the Program Related Agreements; 
 (xi) monitoring Purchaser’s systems reliability; and 
 (xii)
monitoring collection activities and results as well as customer issues arising from collection practices; 
 (b) Establishment
by November 1 of each year of the next calendar year’s schedule of monthly meetings; 
 (c) Adoption of the Marketing
Plan in accordance with Section 4.2 and reviewing and approving changes thereto; 
 (d) Adoption of the Business Plan in
accordance with Section 4.1 and reviewing and approving changes thereto; 
 (e) Approving Additional Products or
enhancements to Program Products proposed to be offered in accordance with Section 4.5 and setting any special rules for the inclusion of such products in the Sears Repurchase Assets or any other terms of such products (including purchase
rights under Section 8.6 and 13.5); 

  
 18 

 (f) Resolving any dispute between the parties as to what constitutes a successor Financial
Product for purposes of Section 4.5(a) and Section 7.1; 
 (g) Approving any changes to the Account Terms;

 (h) Reviewing and evaluating product development; and 

(i) Reviewing and monitoring Sears’ and Purchaser’s activities in support of the Program. 

3.4 Management Committee Procedures. The Management Committee shall hold regular monthly meetings. Special meetings may be held
when scheduled by a prior act of the Management Committee or when called by delivery of at least five Business Days’ prior written notice by either party (which written notice may be waived by one representative of each of Sears and Purchaser).
Any such notice must specify the purpose, time and place of the special meeting. Meetings shall preferably be held in person but may also be held by telephone or video conference call. The location of meetings in person shall be agreed to by Sears
and Purchaser but shall be in Canada. The parties will appoint a Chairman of the Management Committee (who shall not have any additional votes), with the right to appoint a Chairman for six month periods to rotate between Sears and Purchaser. The
members of the Management Committee will adopt such other rules for the conduct of meetings as are agreed upon from time to time. The representatives of each of Sears and Purchaser shall be entitled, collectively, to one vote with respect to all
matters to be voted upon by such committee. Any one of the representatives of Sears and of Purchaser may cast the vote allocated to the entity or entities represented by them, in the manner determined by such representatives. The presence of one
representative of each party shall constitute a quorum for meetings of the Management Committee. Any matter requiring approval of the Management Committee shall require the affirmative vote of the authorized representatives of each of the parties
represented on the Management Committee. The Management Committee shall keep written records of all matters discussed and approved by it, which shall be reviewed and approved by a designated representative of each of the parties. Notwithstanding
anything to the contrary contained herein, Purchaser and Sears shall cause their appointed members to vote in accordance with such party’s obligations under the Program Related Agreements. 

3.5 Executive Committee. The strategic direction of the Program shall be subject to the review of an executive committee (the
“Executive Committee”). The Executive Committee shall be responsible for (i) periodically reviewing the Program; (ii) setting and reviewing strategy for the Program; (iii) overseeing competitive positioning of Program
information systems support and strategy; (iv) reviewing fundamental changes in the operation of the Program; and (v) all other matters that the parties agree should be reviewed by the Executive Committee. The Executive Committee shall
consist of eight members, with four members appointed by each of Sears and Purchaser and reasonably acceptable to each other. Each party shall have the right to remove or replace its appointees for any reason and at any time, and to fill any vacancy
with respect to its appointees. The initial Executive Committee for the Program is set forth in Section 3.5 of the Disclosure Letter. The Executive Committee shall meet (in person or by telephone or video conference) at least twice every year
or at such other intervals and at places in Canada as may be decided by the members of the Executive 

  
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Committee; provided, that either Sears or Purchaser may call a meeting of the Executive Committee by delivery of at least 30 Business Days’ prior written notice to the other party
(which written notice may be waived by one representative of each of Sears and Purchaser). containing the purpose, time and place of the meeting. The parties will appoint a Chairman of the Executive Committee (who shall not have any additional
votes), with the right to appoint a Chairman for six month periods to rotate between Sears and Purchaser. The members of the Executive Committee shall adopt such other rules for the conduct of meetings as are agreed upon from time to time. The
Executive Committee shall be subject, mutatis mutandis, to the same voting and records provisions of the Management Committee set forth in Section 3.4 above. 
 3.6 Committee Deadlocks. If the Management Committee is unable to reach agreement on any matter, either Purchaser or Sears may refer the matter to the Executive Committee for further consideration.
If the Executive Committee cannot resolve a matter that requires approval for the continued operation of the Program (for example, approval of the Marketing Plan; an example of an item that would not be included are the matters set forth in
Section 3.3(e), which are enhancements to the Program but are not required for the continued operation of the Program) or any matter that is subject to its authority under Section 3.5, either Purchaser or Sears may refer the matter for
further consideration in accordance with Section 14.22. Until any such disagreement with respect to the Program Plans and Policies or the Business Plan is resolved, Sears and Purchaser shall continue to conduct their activities in conformity
with the then-existing Program Plans and Policies or Business Plan, as applicable. Any resolution of any matter that is taken by the Executive Committee or by the escalation procedures set forth in Section 14.22 shall be deemed to have been
approved by the Management Committee. 
 ARTICLE IV 

MARKETING 

4.1 Business Plan. No later than September 30 of each year, Sears and Purchaser shall jointly develop an annual (or longer,
if determined by the Management Committee) business plan (the “Business Plan”) for the Program, in substantially the form set forth in Section 4.1 of the Disclosure Letter or such other form as may be approved by the Management
Committee, which shall in each case describe strategies for growth of the Program and include detailed projected financial statements, capital expenditures and systems improvement plans and the historical and projected funding needs for the Program
(including the Marketing Budget), and shall include any potential impact on Sears’ point of sale systems. 
 4.2
Marketing Plan Development. (a) For each six-month period commencing on January 1 and July 1 during the Term (each, a “Program Period”), Purchaser and Sears shall jointly develop a marketing plan (addressing
the subject matter set forth in, and in substantially the form of, Section 4.2 of the Disclosure Letter) containing their agreements relating to the marketing of the Program in that Program Period (a “Marketing Plan”). The
Marketing Plan for each six-month period shall be approved by the Management Committee no later than three months prior to the start of such Program Period. The Marketing Plan shall be the responsibility of the Management Committee, which shall
assess the success of the Marketing Plan at its monthly meetings and shall agree to such changes to the Marketing Plan throughout the remainder of the Program Period that the Management Committee agrees may be necessary or desirable. 

  
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 (b) Subject to Section 4.4 hereof, Sears and Purchaser shall conduct the Program
marketing activities in conformity with Sears’ existing marketing practices until a Marketing Plan is adopted and such existing Sears marketing practices, as adjusted pursuant to the Program Related Agreements, are superseded. 

(c) The Marketing Plan shall contain the details of the Program marketing to be conducted during the relevant Program Period, including
the parties’ respective plans regarding the contemplated frequency, timing, size and methods of marketing to be conducted and their respective objectives and commitments with respect to generating new Accounts and Financial Product sales
through the various distribution channels envisioned by the Marketing Plan. Sears and Purchaser shall conduct marketing to generate Accounts and Financial Products sales in accordance with the Marketing Plan, to promote usage of the Accounts and
generate Program credit sales, and to drive increased sales of Merchandise and credit share. Each Marketing Plan shall also, among other things, contain details relating to (i) the desired distribution of Accounts between Proprietary Accounts
and Co-Branded Accounts, including any decision to market the Sears Proprietary Card to holders of the Sears Co-Branded Card or vice-versa, including through substitution campaigns and “companion cards” campaigns (each of which shall not
be undertaken unless approved by the Management Committee) and all marketing efforts in furtherance thereof, (ii) the marketing of Financial Products and (iii) any proposed enhancements or changes to the Rewards Program. 

(d) Each Marketing Plan shall also contain Purchaser’s marketing budget for such Program Period (the “Marketing
Budget”), including for the items described in Section 4.5(a). Purchaser’s minimum commitment for each Program Period to promote and market the Program (which shall not include the financial obligations of Purchaser that are
separately identified in this Agreement or any Program Related Agreement, e.g., the Sears Fees), shall be set forth in the applicable Marketing Budget, and shall be no less than Sears’ current levels as set forth in Section 4.2 of the
Disclosure Letter. The Marketing Budget shall be used solely in connection with the Program and Sears retail and related promotions. All communications with Sears Customers will be coordinated with Sears in the context of Sears marketing
communication plans with respect to such customers. 
 4.3 Solicitation Materials. All Solicitation Materials shall
prominently display Sears Licensed Marks (or, in the case of non-written Solicitation Materials, shall identify Sears) in the manner provided in the then-current Marketing Plan, and may include such endorsements by Sears as Sears shall approve.
However, no Solicitation Materials will indicate or imply that Purchaser is not the sole owner of the Accounts Receivables generated through the use of Accounts, or that the parties to the Cardholder Agreement are other than the Cardholder and
Purchaser. All of Purchaser’s Solicitation Materials shall be consistent with the Marketing Plan and approved by the Management Committee. 

  
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 4.4 Additional Marketing to Cardholders and Financial Products Customers.
(a) Sears may advertise and promote Sears, its Affiliates, Merchandise or third party products or services by including promotional materials regarding Sears or such Merchandise or goods and services in the mailings accompanying Account and
Financial Product billing statements (the “Sears Statement Inserts”), and shall pay Purchaser’s Cost to produce such Sears Statement Inserts. Sears shall have exclusive access to and may use for solicitation purposes all of the space
available for statement inserts in each billing statement; provided, that Purchaser shall have access to one statement per calendar quarter (or such other greater number as Sears may in its sole discretion decide) in order to promote at its
discretion the Program, Financial Products, or Additional Products. Sears shall conform to all customary standards and requirements of Purchaser in connection with the size and weight requirements for Sears Statement Inserts. Notwithstanding the
foregoing, Purchaser shall not be required to add additional Sears Statement Inserts (beyond what is currently Sears’ practice) that would require additional mail postage, unless Sears agrees to assume the costs related to such additional
postage. Notwithstanding the forgoing, any statement inserts required by Law shall receive priority over any other inserts described herein. 
 (b) Sears may, at its own expense, from time to time send individual pieces of direct mail or electronic communications (such as e-mail newsletters) (collectively, “Sears Solo Mailings”)
to Cardholders or Financial Products Customers. Purchaser shall, for the purpose of conducting a Sears Solo Mailing, provide a current list of Cardholders or Financial Products Customers to Sears, or to a mail house or agent designated by Sears, in
electronic form or such other standard format as Sears may reasonably request; provided, that if Sears receives any such information from Purchaser it shall not share such information with its Financial Partners to the extent doing so will be
in violation of the Bank Act (Canada) and the Purchaser could be held liable for such act. 
 (c) Subject to Section 4.7
(and in particular 4.7(1)) for all Accounts and Financial Products, Sears shall have exclusive access to, and may use all of the space that is reasonably available on the billing statements and billing envelopes, including the space on the billing
envelope that is commonly referred to as the “bangtail” (which Purchaser shall include on all billing envelopes) to advertise and promote Sears, its Affiliates, Merchandise or third party products or services (“Sears Billing
Messages”), and shall pay Purchaser’s Cost to produce the “bangtail.” In the event Purchaser issues any electronic billing statements for Sears Credit Cards or Financial Products, the parties agree that Sears shall have
access consistent with that set forth in Sections 4.4(a) and (c) above. Notwithstanding the forgoing, any statement messages required by Law or deemed necessary by Purchaser in its reasonable discretion to communicate delinquency, overlimit,
adverse action, or similar information to Cardholders, shall receive priority over any messages described herein. 
 (d)
Purchaser shall cooperate with Sears to make available to Sears, at a level no less than Sears’ current practices and at Purchaser’ expense, taped, live and VRU interface promotional messages (as well as responses to customer inquiries)
regarding Merchandise, Excluded Financial Products, in-Store special sales and marketing events in call center communications with Cardholders and Financial Products Customers to promote Merchandise, Excluded Financial Products, in-Store special
sales and marketing events, and Sears and Purchaser shall cooperate to train Purchaser’s personnel in connection therewith. Purchaser agrees that personnel performing the foregoing function shall use the same efforts in performing such
functions, and offer the same quality of service and priority in connection therewith, as is used and offered in connection with the promotion of Program Products, such as Financial Products. 

  
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 (e) With respect to any information under this Agreement that is required to be shared by
Purchaser with Sears, Purchaser will, at Sears’ request, feed such data directly into Sears’ data warehouses (or a successor system designated by Sears), or provide such data in another standard format reasonably acceptable to both
parties. 
 4.5 Additional Products and Enhancements. (a) At the request of Purchaser or Sears, the parties shall
cooperate in good faith, through the Management Committee, to research, evaluate and design (i) new (i.e., other than existing Program Products) Credit Cards, General Financial Services Products or New Payment Cards to be offered to
Cardholders or other Sears Customers, other than any product that (i) is covered by the exceptions to the exclusivity provisions of Section 2.2(a), (ii) is an Excluded Financial Product and (iii) is a successor Financial Product
(any dispute over whether a product is a successor product shall be resolved by the Management Committee) (such new products, “Additional Products”) by or through Purchaser including the following possible products:
(A) “gold” cards, “platinum” cards and similar products; (B) mortgage products; and (C) installment loans (other than Deferred Financing); and (ii) enhancements to the Program Products. Each Marketing Budget
shall include the amount to be spent to research and evaluate possible Additional Products and enhancements to the Program Products during the Program Period with which such Marketing Budget is associated. All such proposals for Additional Products
and enhancements, and related research, studies, reports and surveys, shall be evaluated by the Management Committee in order to identify a reasonable allocation of the risks, costs and benefits of the Additional Products and enhancements to the
Program Products between Sears and Purchaser. In the event an Additional Product is approved in accordance with Section 3.3, Sears and Purchaser shall designate whether such Additional Product is a “Sears Proprietary Card,” a
“Sears Co-Branded Card” or a “Financial Product,” if applicable, and shall amend the Program Related Agreements (including any Exhibits or Schedules thereto) and the Licensing Agreement, if necessary, to provide for such
Additional Product, including with respect to additional payments to be made to Sears under Article VII. 
 (b) In the event
that Sears proposes in writing to the Management Committee an Additional Product, and after undertaking the research, evaluation, and design process contemplated by Section 4.5(a), if Purchaser (including through its representatives on the
Management Committee or Executive Committee) (i) declines to provide a positive response to such proposed Additional Product, within 45 days of such proposal or such longer period of time as is deemed to be reasonable by the Management
Committee taking into consideration the complexity of the product and the extent of necessary operational changes and system development or (ii) Purchaser does not enter into an agreement for the provision of such product as promptly as
commercially reasonable following a positive response, Sears shall have the right to provide such proposed Additional Product to Sears Customers, Cardholders, Financial Products Customers and holders of Excluded Financial Products by itself or
through third parties outside the Program (which, for the avoidance of doubt, shall not be deemed to violate any provision of the Program Related Agreements). 

  
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 (c) Sears may, by itself or through a third party, offer a source of credit, including
through the issuance of Credit Cards, to those Sears Customers whose application for credit have been declined by Purchaser or who are otherwise not eligible for credit under the Credit Policy (each, a “Decline”); provided,
however, that any such offer may only be made to a Person after such Person has become a Decline. Sears shall (i) develop and market the source of credit in a manner that would not be reasonably expected to create consumer confusion
between such product and Sears Credit Cards; and (ii) shall not promote such products in the Stores. Sears agrees that applications for such alternative credit product shall be separate from the applications for Sears Credit Cards, and shall
only be accessible or distributed to Declines. In the event Sears elects to offer such source of credit, Sears and Purchaser shall cooperate to establish a mechanism, consistent with Law, for Purchaser to promptly provide to Sears or a designated
third party, at no additional cost (other than de minimis costs) to Purchaser, all information in possession of Purchaser necessary to provide such source of credit. 
 4.6 Data Ownership and Use. (a) Subject to applicable Law and to Sears’ and its Subsidiaries’ then-current policies regarding protection and use of customer information (the
“Sears Policy”), Sears shall make available, on a monthly basis, at Purchaser’s request and reimbursement of Sears’ data processing expense, information, including the names and addresses, telephone numbers and, as
available, other information (including e-mail addresses), of Sears Customers who are not Cardholders or Financial Products Customers, in electronic or another standard format, subject to such criteria as may be mutually agreed upon, for purposes of
soliciting such Sears Customers for Sears Credit Cards and Financial Products (“Prospect Data”). Notwithstanding any other provisions hereof, under no circumstances shall Sears be obligated to take any action, including providing
any information, if such action would be contrary to applicable Law or to Sears Policy. Purchaser agrees that any solicitations conducted using Prospect Data shall be performed in all respects in accordance with applicable Law, the Sears Policy and
the Licensing Agreement. The Prospect Data made available to Purchaser under this Section 4.6(a) shall remain the property of Sears, and Purchaser shall have no right to use such data, except as expressly set forth in this Agreement.

 (b) Subject to Section 4.7, Purchaser shall conduct for Sears in each calendar year, in each case at Sears’
election, up to four Merchandise marketing programs (and a reasonable number of test marketing efforts) using all or such portion of Purchaser’s customer database as Sears may elect; provided, that Sears shall reimburse Purchaser’s
Cost in connection with the foregoing. Any data made available by Purchaser under this Section 4.6(b) shall remain the property of Purchaser, and Sears shall have no right to use such data, except as expressly set forth in this Agreement. Any
data generated through any marketing programs conducted by or on behalf of Sears and its Subsidiaries shall be owned by Sears, and Purchaser shall have no right to use such data. 

(c) Purchaser shall be the sole and exclusive owner of: 

(i) any credit bureau report obtained by or on behalf of Purchaser pertaining to a Cardholder, any credit scoring and
decision information, any analyses of credit quality and credit risk, analyses prepared for the purpose of fraud or suspicious activity monitoring or any other similar analyses prepared by or on behalf of Purchaser and maintained in Purchaser’s
credit file pertaining to a Cardholder; and 

  
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 (ii) all Cardholder Information, including all Personal Information
collected by or on behalf of Purchaser in connection with Account Applications or applications for Financial Products (subject of Section 4.6(d)); provided, that in no event shall Purchaser utilize such information for a purpose that
would reasonably be expected to have a material adverse effect on the Program, in connection with any activity inconsistent with this Agreement, including Section 2.2 hereof, or in any manner that competes directly with the marketing or sale of
Merchandise; provided, further, that Purchaser shall disclose such information to Sears and Sears and its Affiliates may (A) use the information described in this Section 4.6(c)(ii) and (B) share the information
described in this Section 4.6(c)(ii) with Financial Product Partners and Partner Merchants for marketing and servicing purposes. 
 (d) Sears shall own all Sears Transaction Data; provided, that in no event shall Sears utilize such information for a purpose that would reasonably be expected to have a material adverse effect on
the Program, in connection with any activity inconsistent with this Agreement, including Section 2.2 hereof, or in any manner that competes directly with Purchaser’s Credit Card products. 

(e) Purchaser shall, from time to time, provide such notices to, and seek consents from, Cardholders, Declines and Financial Products
Customers as shall be necessary to permit Purchaser to perform its obligations under this Agreement, including with respect to the collection, use and disclosure of any Personal Information. Purchaser will make available to Sears its forms used from
time to time for the obtaining of consents under Privacy Laws, including the consents of Cardholders, Declines and Financial Products Customers. 
 (f) Sears and Purchaser may request the other to forward any information to which it is entitled hereunder to a third party processor that is bound by confidentiality and information privacy agreements no
less restrictive than those set forth in Article IX and applicable Law and that acts under a written agreement to distribute such information at the request of Sears or Purchaser, as the case may be. 

(g) Nothing in this Agreement shall prohibit Purchaser or its Affiliates from using Cardholder Information in connection with the
marketing, pricing or placement of any securitization transaction contemplated under Section 2.3, subject to applicable Law. 
 4.7 Compliance with Privacy Laws. 
 (a) Neither Purchaser nor Sears shall
make or permit any disclosure or use of any Personal Information of Cardholders, Financial Products Customers or Sears Customers, other than as permitted by this Agreement and applicable Laws. Each of Sears and Purchaser shall be responsible for
complying with all Privacy Laws applicable to its activities in relation to the conduct of the Program, and each party shall bear its own costs of such compliance. 

  
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 (b) Purchaser will collect, use, store, disclose, dispose of and otherwise handle Prospect
Data in accordance with the Sears Policy and applicable Laws and solely for the purposes permitted by this Agreement. Sears will collect, use, store, disclose, dispose of and otherwise handle Cardholder Information in accordance with applicable Laws
and solely for the purposes permitted by this Agreement. 
 (c) If Purchaser or Sears is required to disclose Prospect Data or
Cardholder Information, respectively, in connection with any judicial proceeding or government investigation, then the party required to make the disclosure will, to the extent permitted by applicable Laws, promptly notify the other party and allow
it a reasonable time before such disclosure is required to seek a protective order from the appropriate Governmental Authority. Thereafter, the party required to make the disclosure may disclose such Cardholder Information or Prospect Data, as the
case may be, but only to the extent required by applicable Laws and subject to any applicable protective order. 
 (d)
Purchaser and Sears will each restrict access to Prospect Data or Cardholder Information, respectively, to those of its and its Affiliates’ employees and employees of vendors who have a legitimate business need for such data for the purposes
permitted by this Agreement, and who have agreed to handle such data in accordance with the terms of this Agreement. 
 (e)
Purchaser and Sears will each refer to the other all requests for access to Prospect Data or Cardholder Information, respectively, and will respond to any such request only by making reference to such referral. If Purchaser or Sears is required by
any Privacy Law to provide to an individual Prospect Data or Cardholder Information, respectively, that is in its possession or control, upon request to the other party and subject to reasonable prior notice, the other party will provide such
Cardholder Information or Prospect Data, as the case may be, and will meet any deadlines for such provision required to enable the requesting party to comply with any deadlines applicable to the provision of such Cardholder Information or Prospect
Data, as the case may be, under such Privacy Laws. In addition, at the other party’s request, Purchaser or Sears will update, correct or delete Prospect Data or Cardholder Information, respectively, or modify the individual’s choices with
respect to the permitted use of such Prospect Data or Cardholder Information, within five Business Days from the date upon which the request was made by the requesting party. 
 (f) Without limiting the obligations contained in Article IX, Purchaser and Sears will each store and protect Prospect Data and Cardholder Information, respectively, from loss, theft, unauthorized access,
copying, modification, use or disclosure during utilization, transmission and storage using technology, physical protection measures, processes and standards of practice that are consistent with commercially reasonable practices used or observed by
members of the financial services industry in North America. In the event any loss, theft or unauthorized access, copying, modification, use or disclosure occurs, the affected party shall notify the other party in writing and the parties shall agree
upon an appropriate remedial process. 
 (g) Purchaser and Sears will each cooperate and comply with any requests or
instructions issued by a party’s regulator(s) or any privacy or data protection authority, including the Canadian Privacy Commissioner and any other Governmental Authority applicable to either party or its Affiliates, Prospect Data or
Cardholder Information, as the case may be. 

  
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 (h) Upon completion of Purchaser’s required use of Prospect Data, Purchaser will
return or destroy all Prospect Data in accordance with Sears’ instructions. 
 (i) Purchaser and Sears will each designate
an employee who will be responsible for safekeeping all Prospect Data or Cardholder Information, respectively, in that party’s possession or under its control and for ensuring that that party complies with the terms of this Section 4.27.

 (j) Purchaser and Sears will each ensure that all of its or its Affiliates’ personnel who may have access to Prospect
Data or Cardholder Information, respectively, will be appropriately trained in compliance with Privacy Laws. 
 (k) Upon
either party’s request, but not more than once by each party in any calendar year during the Term, the other party shall deliver to the requesting party a statement signed by an appropriate senior officer certifying in writing that, in respect
of the previous twelve month period: (i) it has developed privacy compliance processes designed to ensure its compliance with this Section 4.7; (ii) it has implemented the processes referred to in this Section 4.7; and
(iii) to the best of its knowledge, after reasonable inquiry, it has complied in all material respects with the requirements set forth in this Section 4.7. 
 (1) Despite any other provisions of this Agreement, nothing in this Agreement shall require the Purchaser to disclose or use any Personal Information of Cardholders, Financial Product Customers and
Declines or Sears Customers, if such disclosure or use would be contrary to Privacy Laws. 
 (m) Despite any other provisions
of this Agreement, under no circumstances shall Sears be obligated to disclose any Personal Information (including Prospect Data) to Purchaser or a third party, if such disclosure would be contrary to Privacy Laws or the Sears Policy. 

(n) Purchaser shall not make any amendment to the Purchaser Policy that would prejudice the rights and interests of Sears under this
Agreement, unless such amendment is necessary to comply with Privacy Laws. Sears shall not make any amendment to the Sears Policy that would prejudice the rights and interests of Purchaser under this Agreement, unless such amendment is necessary to
comply with Privacy Laws. 
 4.8 Joint Marketing. Purchaser shall cooperate in good faith with Sears to develop joint
marketing opportunities to market Merchandise to customers of Purchaser and its Affiliates. 
 ARTICLE V 

ACCOUNT CREATION AND ADMINISTRATION 
 5.1 Terms. (a) Purchaser agrees that the provisions of Section 5.1 are hereby incorporated into this Agreement by reference. 

  
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 (b) Each of Sears and Purchaser may propose amendments to, or modifications of, any
provision of the Servicing Policy and Service Standards but neither party shall be required to agree to such amendments (except to the extent otherwise required by the Program Related Agreements). At its monthly meetings, the Management Committee
shall review all amendments or modifications of the Servicing Policy and Service Standards proposed during the preceding month and shall direct that the relevant policy and standards be updated to reflect any such changes that are approved in
accordance with Section 3.3. 
 (c) Purchaser shall have the sole and exclusive right to set, maintain, and modify the
terms of the Credit Policy and the Financial Products Policy; provided, that Purchaser shall take into consideration the objectives set forth in Section 3.2 and the impact on Sears’ business in establishing or changing any such
Credit Policy or Financial Products Policy. Prior to making such amendments or modifications, Purchaser shall notify Sears and, upon Sears’ request, review with the Management Committee any proposed amendments to, or modifications of, any
material terms of the Credit Policy or Financial Product Policy; provided, that Purchaser shall retain ultimate control over the Credit Policy and Financial Products Policy. Notwithstanding the foregoing, purchase transactions with respect to
an Account shall not be declined solely because the purchase of protection agreements, extended warranty protection, maintenance agreements, or similar products would cause an over-limit condition on an Account. 

(d) Purchaser shall make available to Sears from time to time, then-current copies of the Credit Policy, Financial Products Policy or
Servicing Policy upon Sears’ request, and shall cooperate in good faith with Sears to address any concerns Sears may have with respect to the Financial Products Policy or Servicing Policy, taking into account all relevant aspects of the
Program, including customer satisfaction results. 
 5.2 Origination Criteria. (a) Purchaser shall accept or reject
any application for an Account based solely upon application of the then-current Credit Policy. Upon satisfaction by an applicant of the applicable credit criteria set forth in the Credit Policy, Purchaser shall promptly establish a Co-Branded
Account or a Proprietary Account, as applicable, for such applicant and issue a Sears Proprietary Card or Sears Co-Branded Card, as applicable, to such applicant. Purchaser also shall issue a renewal Sears Credit Card to each Cardholder at each
scheduled Sears Credit Card renewal date, in accordance with the then-current Credit Policy. 
 (b) Purchaser shall accept or
reject any application for a Financial Product based solely upon application of the then-current Financial Products Policy. Upon satisfaction by an applicant of the applicable criteria set forth in the Financial Products Policy, Purchaser shall
issue the applicable Financial Product to such qualifying applicant. Purchaser also shall issue a renewal Financial Product at each scheduled Financial Product renewal date, in accordance with the then-current Financial Products Policy. 

(c) Sears commits to providing incentives to store associates for originating new Accounts. Sears also commits that its total spending
for such incentives will be consistent with its historical levels. 

  
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 5.3 Program Costs. Except as otherwise provided in this Agreement or in the
Marketing Plan, Purchaser shall be responsible for all costs related to the Program, including opening and operating the Accounts and Financial Products accounts, marketing, store signage and communications costs (such marketing, signage and
communications costs to be at the levels set forth in the Marketing Plan), credit bureau costs, pre-screening and post-screening costs, credit authorization costs, Credit Card production costs, processing, servicing, administration, billing and
collection costs, costs of converting Cardholders and the cost of funding the Accounts Receivables. 
 5.4 Ownership of
Accounts and Financial Products Accounts. (a) Purchaser shall, subject to permitted securitization, own all Accounts and shall extend credit with respect to all such Accounts, and Sears shall not be considered a creditor with respect to any
such Account for any purpose whatsoever. Purchaser will cause the terms of the Accounts, Financial Products, Cardholder Agreements and Financial Products Agreements (“Account Terms”) and all other documents, Solicitation Materials,
Credit Cards and agreements prepared by or on behalf of Purchaser that are mailed or supplied to the general public, customers, applicants, Cardholders and Financial Products Customers in connection with the Program to comply with all applicable
Law. All aspects of the operation of the Program by Purchaser, including Account solicitation, acquisition, administration, servicing and debt collection, will comply with all applicable Law. Purchaser shall be responsible for all credit and fraud
and other losses on such Accounts, except to the extent subject to chargeback pursuant to the Merchant Agreement. Purchaser may cancel or suspend credit privileges of any Cardholder if Purchaser determines such action is warranted in accordance with
the Credit Policy. The initial Account Terms applicable to the Program are set forth in Schedule 5.4 of the Disclosure Letter and changes to such terms shall require the approval of the Management Committee. 

(b) Purchaser shall own all Financial Products accounts and shall be responsible for all risk and loss associated with Financial
Products accounts. 
 5.5 Documentation. Account Documentation and Financial Products Documentation shall be customized
for the Program, as specified in the Marketing Plan. Purchaser will prepare and provide to each Cardholder and Financial Products Customer an Account Agreement or Financial Products Agreement, as applicable, and disclosure statement and such other
notices or documents related to such Account or Financial Product as are required from time to time under applicable Law, and shall provide appropriate disclosure language for inclusion on the Solicitation Materials. Purchaser shall be responsible
for ensuring that the Account Documentation and Financial Products Documentation comply with applicable Law. Within 120 days following the Effective Date, Purchaser shall mail to Cardholders and Financial Products Customers notices indicating that
Purchaser has purchased the Acquired Accounts and Financial Products accounts. Sears shall cooperate in good faith with Purchaser to enable Purchaser to prepare, print and mail such notices to Cardholders and Financial Product Customers. 

5.6 Servicing. (a) The Servicing Policy shall set forth functions and services that Purchaser shall perform in order to
achieve results substantially similar to those results set forth in Schedules A and C of the Disclosure Letter. 

  
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 (b) Purchaser shall assign such trained personnel as are necessary or appropriate for
servicing the Accounts and Financial Products accounts in accordance with this Section 5.6, and shall dedicate a majority of all customer service and Store relations personnel involved with the Program to the exclusive servicing of the Program
(but all excluded from servicing or otherwise being involved with Sears’ Competitors). Without limiting Article IX, Purchaser shall establish a program of oversight and controls to ensure that Confidential Information, including Marketing Plans
and Business Plans, is not disclosed to any Sears Competitor by any such personnel. These personnel shall be trained to work collaboratively with Sears, including Sears in-Store employees. Purchaser shall have a dedicated management organization and
leadership structure specifically designed to support the Program, and Purchaser shall provide dedicated personnel resources in the areas of finance, marketing, risk, decision management and overall Program management, in each case as Purchaser
deems reasonably necessary. Purchaser shall maintain adequate computer and communications systems and other equipment and facilities necessary or appropriate for servicing the Accounts and Financial Products accounts in accordance therewith.
Purchaser shall not provide any inbound customer service using personnel located outside of North America in connection with the Program without Sears’ prior written consent. 

(i) Purchaser shall, at its expense, maintain the disaster recovery plan in effect prior to the transfer to Purchaser,
which shall be tested regularly by Purchaser, as well as systems, equipment, facilities and trained personnel, necessary to maintain the same. If Purchaser revises the disaster recovery plan, Sears shall have the right to review, upon request, a
then-current copy of Purchaser’s disaster recovery plan and the results of Purchaser’s tests of such plan. Sears acknowledges and agrees that Purchaser may make changes to its disaster recovery plan from time to time without Sears’
consent; provided, that such changes do not decrease in any material respect the level of protection offered by the disaster recovery plan. Purchaser shall provide to Sears any updated, revised, amended or restated disaster recovery plan as
soon as it becomes available. If Sears identifies a potential disaster that Purchaser’s disaster recovery plan does not reasonably anticipate, such potential disaster shall be considered by the Management Committee and, if applicable, the
Management Committee shall recommend an appropriate course of action. The implementation of Management Committee recommendations, performance of such tests, and the resolution of any issues or problems identified in such test shall be performed at
the sole discretion and expense of Purchaser. Each of Sears and Purchaser shall maintain information security policies and procedures that include administrative, technical and physical safeguards designed to (a) ensure the security and
confidentiality of Confidential Information; (b) protect against anticipated threats or hazards to the security or integrity of such Confidential Information; (c) protect against unauthorized access to, or use of, such Confidential
Information, and (d) meets any applicable requirements of the Card Association. 
 (ii) Sears and its
subsidiaries have and shall maintain a disaster recovery plan for the restoration of services within the scope of Sears responsibilities under this Agreement affecting the Program and to the extent practicable, will provide Purchaser with prior
written notification of any modifications of such plans. Sears shall provide Purchaser with the opportunity to review applicable portions of such plans, upon the reasonable request of Purchaser. 

  
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 (c) Purchaser shall, at its expense, provide appropriate mechanisms for application
processing of Accounts at the point of sale for Sears Customers and for making credit immediately available to approved customers. Sears shall provide to Purchaser such cooperation and assistance as Purchaser may reasonably require for the provision
of such mechanisms. All Store signage and similar material related to the Program, including design and placement thereof, shall become property of and shall be controlled by Sears. The level of funding of Store signage and similar materials
relating to the Program shall initially be consistent with Sears’ current practices, and thereafter subject to the Marketing Plan. 
 (d) Each party shall be responsible for regular costs arising out of or in connection with training its employees for purposes of the Program. Sears shall incorporate ongoing training in connection with
the Program (the content of which will be developed under the guidance of the Management Committee), substantially in the manner, terms and frequency currently being provided with respect to Sears employees. If and to the extent that any action of a
party in accordance with the terms of this Agreement requires or results in the other party incurring or being required to incur significant training costs (other than due to changes in applicable Law), the parties, working through the Management
Committee, shall reach a mutually agreeable allocation of such training costs. 
 5.7 Service Standards; Credit Goals.
The parties shall be bound by the Service Standards and Credit Goals. 
 ARTICLE VI 

INTELLECTUAL PROPERTY 
 6.1 Use of Sears Licensed Marks. Pursuant to the Licensing Agreement, and on the terms and subject to the conditions therein set forth, Sears is granting Purchaser a sublicense to use the Sears
Licensed Marks in connection with Financial Products, Sears Credit Cards, the solicitation of new Accounts and Financial Products accounts and uses related to the foregoing. Purchaser acknowledges that Sears Bank has arranged for Purchaser to have
the right to use the Sears Licensed Marks pursuant to the Licensing Agreement and that Purchaser is not acquiring any right, title or interest in the Sears Licensed Marks except a limited license as expressly provided in the Licensing Agreement,
subject to the conditions thereof. 
 6.2 Purchaser License Grant. Subject to the terms and conditions of this Agreement
and applicable Law, Purchaser grants to Sears and its Subsidiaries a personal, royalty-free, non-transferable, non-assignable, non-exclusive limited license, in the Licensed Territory, to use the Marks of Purchaser set forth in Section 6.2 of
the Disclosure Letter (the “Purchaser Licensed Marks”) solely (a) on Solicitation Materials prepared by Sears, to the extent required for promoting the Program and soliciting new Accounts and Financial Product accounts;
(b) in the form and manner in which Purchaser provides the Purchaser Licensed Marks to Sears; and (c) as Purchaser approves in advance in writing. Purchaser shall respond promptly to all requests for Purchaser Licensed Marks approval,
provided, that Purchaser’s failure to provide a 

  
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prompt response to any such request shall not be deemed (i) a breach of this Agreement and (ii) a consent for Sears to use the Purchaser Licensed Marks as requested. To assure the use
and maintenance of high standards of quality, workmanship, style and appearance and the proper use of the Purchaser Licensed Marks, Sears and its Subsidiaries shall adhere to Purchaser’s written guidelines with respect to all Solicitation
Materials prepared by Sears that contain Purchaser Licensed Marks. Sears agrees to provide Purchaser, from time to time and upon Purchaser’s request, with a reasonable number of samples of any Solicitation Materials publicly disseminated or
intended for public dissemination by Sears or its Subsidiaries which utilize the Purchaser Licensed Marks. If Purchaser determines, after reviewing the proposed Solicitation Materials bearing Purchaser Licensed Marks, that it disapproves of such
materials, Purchaser shall so advise Sears, and such materials shall not be printed or used, as the case may be, until appropriate corrective action is taken to the reasonable satisfaction of Purchaser. After any Solicitation Materials have been
approved by Purchaser pursuant to this Section 6.2, Sears shall not change such materials without Purchaser’s prior written approval. The foregoing license grant is personal to Sears, and Sears may not assign, transfer or sublicense any
rights in or to the Purchaser Licensed Marks in any manner. Sears acknowledges that it is not acquiring any right, title or interest in the Purchaser Licensed Marks except a limited license as expressly provided in this Agreement, subject to the
conditions hereof. All rights in or to the Purchaser Licensed Marks are expressly reserved by Purchaser. 
 6.3 Changes to
Trademark Usage. In the event that Purchaser notifies Sears in writing that it disapproves of any particular use of the Purchaser Licensed Marks that had previously been approved, Sears shall, in Purchaser’s discretion, either
(i) phase out such usage in the ordinary course of business; or (ii) promptly cease such usage or otherwise cure such disapproved use; provided, that Purchaser (x) sets forth, with specificity, a good faith reasonable basis for
such disapproval; and (y) agrees to reimburse Sears for the reasonable replacement costs, if any, of such affected materials. 
 6.4 Establishment of New Intellectual Property Rights. Each of the parties acknowledges that any other party may create and establish (or have created and established for it) new Intellectual
Property rights in connection with the Program (“New Intellectual Property”), and agree as follows: 
 (a) To
the extent that Sears creates New Intellectual Property, Sears shall own all rights established during the Term, shall be responsible for making all filings and taking all other actions necessary to protect such New Intellectual Property and shall
be deemed to have granted to Purchaser a non-exclusive, royalty-free, non-assignable license in the Licensed Territory to use such New Intellectual Property solely in connection with the Program, and to allow any party to whom services may be
delegated under this Agreement to do so. 
 (b) To the extent that Purchaser creates New Intellectual Property, Purchaser shall
own all rights established during the Term, shall be responsible for making all filings and taking all other actions necessary to protect such New Intellectual Property and shall be deemed to have granted to Sears a non-exclusive, royalty-free,
non-assignable license in the Licensed Territory to use such New Intellectual Property solely in connection with the Program, and to allow any party to whom services may be delegated under this Agreement to do so. 

  
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 (c) No party shall be deemed to have established any rights in any Marks of the other
party, or in any Marks that contain Intellectual Property of the other party, and any newly-created Intellectual Property rights shall be deemed to have been established only in newly-created material independent of the other party’s Marks.
Furthermore, no party shall attempt to register any Intellectual Property containing another party’s Intellectual Property. 
 6.5 Effect of Termination or Expiration of Agreement. Unless determined otherwise by the Management Committee in accordance with Section 6.4, upon the expiration or termination of this
Agreement, the party that created New Intellectual Property shall remain the owner thereof, and Sears or its designee shall, upon the exercise of the Repurchase Option, have a right to receive a perpetual, non-exclusive royalty-free license to such
New Intellectual Property owned solely by Purchaser but only for use with respect to the Sears Repurchased Assets or a successor program. 
 6.6 Mandatory Usage of Sears Licensed Marks. Purchaser shall use the Sears Licensed Marks on all Sears Credit Card plastics (provided that only the Sears Licensed Marks, and not any Purchaser or
other marks other than MasterCard for the Sears Co-Branded Card shall appear on the front of the plastics) and in all Solicitation Materials, Account documentation and Financial Products Documentation and other written and oral correspondence with
respect to Sears Credit Cards and Financial Products (other than materials Purchaser uses in connection with its Credit Card programs generally), and such use shall be in accordance with the specifications set forth in the then-current Marketing
Plan and in conformity with the terms of the Licensing Agreement. 
 ARTICLE VII 

CERTAIN ARRANGEMENTS 
 7.1 Sears Fees. In consideration of any services to be rendered by Sears under the Program Agreement relating to payments of amounts for which Sears Credit Cards have been issued, Purchaser will
pay or cause one of its Affiliates to pay to Sears or, at the direction of Sears, a Subsidiary of Sears, the amounts set forth in Section 7.1 of the Disclosure Letter with respect to the Accounts and Financial Products accounts (collectively,
“Sears Fees”); provided, that successor Financial Products shall be treated as Financial Products for purposes of such calculation. 
 7.2 In-Store Payments. No later than 15 days after the end of each calendar month, Sears shall present to Purchaser a statement containing the number of In-Store Payments accepted by Sears and its
Affiliates during that month, and Purchaser shall pay to Sears, no later than 30 days after receipt of such statement, an In-Store Payment contribution calculated in accordance with Section 7.2 of the Disclosure Letter. 

7.3 Merchant Discounts; Over-Limit Fees. Purchaser agrees that there shall be no Merchant Discount expense on Sears Credit Card
sales with respect to Merchandise. Over-limit fees shall be calculated in accordance with Section 7.3 of the Disclosure Letter. 
 7.4 Discover Card Processing Services. The parties shall cooperate to offer Discover Card Processing Services in accordance with Section 7.4 of the Disclosure Letter. 

  
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 7.5 Special Credit Card Programs. Sears and Purchaser agree as follows: 

(a) Deferred Financing. Sears may, at its sole discretion, continue to offer Deferred Financing promotions to Sears Customers,
and the parties shall support such programs in accordance with Section 7.5 of the Disclosure Letter. 
 (b) Sears Card
Events. Purchaser shall be responsible for all promotional and marketing costs, including advertising, incurred by Sears in connection with Sears Card Events, in accordance with Section 7.1 of the Disclosure Letter. Sears shall present an
invoice for such promotional and marketing costs, together with reasonable supporting detail, after each Sears Card Event, and Purchaser or its Affiliates shall pay the invoiced amounts to Sears no later than 30 days following the receipt of such
invoice. Sears may propose to Purchaser alternative ways to spend the marketing funds allocated by Purchaser to Sears Card Events. 
 7.6 Rewards Programs. Sears shall be responsible for and control the Rewards Programs (and shall make the commitment described in Section 7.6 of the Disclosure Letter) and Purchaser shall
cooperate with Sears in the provision thereof and will provide, at no cost to Sears, the rewards management system with respect to the Rewards Program. 
 7.7 Promotional Cards. Sears may, from time to time, reasonably ask Purchaser to manufacture and provide promotional cards bearing the Sears Licensed Marks, whether or not related to the Program
and Purchaser shall manufacture and provide such promotional cards and be entitled to reimbursement of its Cost to manufacture and provide such promotional cards. 
 ARTICLE VIII 
 ADDITIONAL COVENANTS 

8.1 Compliance with Law; Policies. Each of Purchaser and Sears shall comply with all applicable Law and the Program Plans and
Policies in connection with the Program and the performance of each of its obligations hereunder. 
 8.2 Cardholder
Surveys. As of the Effective Date, Purchaser shall, at its expense, continue to perform and provide to Sears the Cardholder and Financial Products surveys used by Sears as of the Effective Date. Following the Effective Date, Purchaser may elect
to migrate to different survey formats (which shall continue to be provided to Sears), so long as such new surveys provide Sears with a similar level of information in all material respects with respect to Cardholders and Financial Products
Customers. In the event Sears identifies any material information that is not included in Purchaser’s survey, Purchaser shall, to the extent reasonably practicable, include such information in future surveys, unless the inclusion of such
information is inconsistent with the nature of the parties’ relationship under the Program. Consistent with the results of each year’s worth of Cardholder surveys, the Management Committee shall establish minimum standards of Cardholder
satisfaction to be incorporated into the Service Standards. Purchaser shall make available to Sears such surveys and all associated working papers promptly following completion thereof. Nothing herein shall affect Sears’ right to conduct its
own surveys of Cardholders, Financial Products Customers or any other Person. 

  
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 8.3 Reports; Monitoring Rights. (a) As of the Effective Date, Purchaser shall,
at its expense, continue to produce and provide to Sears the reports with respect to profitability, other performance metrics and the operations of the Program used by Sears as of the Effective Date. Following the Effective Date, Purchaser may elect
to migrate to different report formats (which shall continue to be provided to Sears), so long as such new reports provide Sears with a substantially similar level of information with respect to profitability, other performance metrics and the
operations of the Program. In addition to the reports described above, Purchaser shall also provide to Sears at Sears expense any customized reports reasonably requested by Sears from time to time. In the event Sears identifies any material
information that is not included in Purchaser’s standard reports, Purchaser shall, to the extent reasonably practicable, include such information in future reports, unless the inclusion of such information is inconsistent with the nature of the
parties’ relationship under the Program. 
 (b) Sears may, from time to time, have a reasonable number of its employees or
representatives present at the offices of Purchaser at which services hereunder are provided to monitor Purchaser’s activities with respect to the Program (including matters relating to customer complaints and regulatory and litigation)
including through monitoring of phone conversations between Purchaser’s employees and Cardholders and Financial Products Customers, and Purchaser shall also grant Sears remote access to perform such monitoring at Sears’ request;
provided, that any such activity by Sears shall be subject to, and conducted in compliance with, applicable Law, and shall be conducted in a manner that shall not unreasonably impede Purchaser’s ordinary course of business or
Purchaser’s ability to meet its obligations hereunder. 
 (c) Purchaser shall provide to Sears or its Affiliates any
information, including reasonable certification documents (including with respect to controls and procedures), necessary for Sears and its Affiliates to comply with applicable Law, including securities laws, and accounting regulations relating to,
or arising from, the Program. 
 8.4 Systems Interface; Mail Forwarding. 

(a) Purchaser and Sears shall use commercially reasonable efforts to establish and maintain appropriate interfaces between their
respective marketing, administrative, data and customer information, authorization, point of sale, application processing, financial, technical support and other systems, including systems maintained by third party providers on behalf of a party
hereto, in order to facilitate the efficient performance by Sears and Purchaser of their respective obligations under the Program Related Agreements. 
 (b) Any correspondence received by either party that is intended for the other party shall promptly be forwarded via mail to the address designated in writing by such other party. In addition, the parties
shall mutually agree upon a call handoff procedure for any calls received by either party that are intended for the other party. 
 8.5 Acquiring New Business. (a) In the event that Sears or its Subsidiaries acquires, directly or through merger, acquisition, consolidation or other combination or similar event, from third
parties any retail business (each, a “New Business”) that directly or through an Affiliate issues a Credit Card, Sears shall give notice (which will contain reasonable financial

  
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information to permit Purchaser to exercise its rights under this Section 8.5(a)) of such acquisition to Purchaser either prior to or no later than 30 days after the consummation of such
transaction and permit Purchaser to make an offer to purchase the accounts and accounts receivable associated with such Credit Card (the “New Portfolio”) and add the New Portfolio to the Program, unless the New Business is subject
to an existing agreement that would prohibit such transactions. Purchaser shall have the right to make an offer to purchase the New Portfolio within 60 days of receipt of the notice from Sears. Sears may accept or reject such offer in its sole
discretion. If Sears accepts such offer, Sears shall convey or cause to be conveyed to Purchaser the New Portfolio, in exchange for payment by Purchaser to Sears of the agreed-upon amount and on such other terms as agreed between Sears and Purchaser
and such New Portfolio shall be subject to the Program. If Purchaser elects not to make an offer under this Section 8.5(a), or if Sears rejects such offer, Sears (or an Affiliate of Sears or a third party designated by Sears) shall have the
right to sell to a third party on superior terms (including ongoing program terms) to those offered by Purchaser if Purchaser made an offer under this Section 8.5(a) or retain the New Portfolio and, in either case, to operate and service the
New Portfolio outside the Program (which, for the avoidance of doubt, shall not be deemed to violate any provision of the Program Related Agreements). 
 (b) In the event that Sears or its Subsidiaries acquires, directly or through merger, acquisition or other combination or similar event, from third parties any New Business that through an unaffiliated
person (other than Purchaser or its Affiliates) issues a Credit Card, Sears shall give notice of such acquisition to Purchaser either prior to or no later than 30 days after the consummation of such transaction and Purchaser shall use its
commercially reasonable efforts to purchase, with Sears’ consent, from such unaffiliated issuer the Credit Card portfolio; provided, that if Purchaser is unable to purchase such portfolio prior to the time that notice of termination or
election to extend the term, as applicable, is due under the applicable program agreement, Sears shall have the right to operate the portfolio under the existing program agreement or to purchase and operate such retailer’s portfolio itself or
to engage a third party to do so, in each case outside the Program (which, for the avoidance of doubt, shall not be deemed to violate any provision of the Program Related Agreements). 

(c) In the event that Sears or its Subsidiaries acquires, directly or through merger, acquisition or other combination or similar event,
from third parties any New Business that through Purchaser or its Affiliates issues a Credit Card, Sears and Purchaser shall mutually agree on whether to integrate such portfolio into the Program; provided, that if the parties do not do so,
this Agreement shall not apply thereto. 
 (d) In the event that Purchaser acquires any portfolio pursuant to this
Section 8.5, Sears and Purchaser shall agree on terms to integrate the acquired portfolio into the Program, taking into account cardholder agreement terms and applicable Law; provided, that in general it is the intent of the parties to
convert private label credit card accounts to Proprietary Accounts and co-branded accounts into Co-Branded Accounts. Purchaser shall be responsible for all costs related to the conversions of any portfolio that it or its Affiliates acquire pursuant
to Section 8.5, including replacement of Credit Card plastics, notices to Cardholders and complying with other requirements of applicable Law. 

  
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 8.6 Disposition of Stores. 

(a) In connection with a sale, to a Person other than a Subsidiary of Sears, of an existing chain or other group of separately
identifiable Stores, whether individually or in a group, including through the sale of a division or Subsidiary of Sears (unless such Stores following such sale are Sears-branded stores) (“Disposed Stores”), Sears or its designee
shall have the right, at its election, exercisable no later than 30 Business Days following the transaction by which the Stores are disposed, to purchase from Purchaser, the (i) Sears Proprietary Cards branded with the Marks of the Disposed
Stores and all Accounts and associated Accounts Receivables (and related Cardholder Information) for such Sears Proprietary Cards and (ii) any Account (and related Accounts Receivable and Cardholder Information) for which at least 90% of the
purchase activity (measured by the number of transactions in the past twelve months) on such Account is attributable to such Disposed Store (“Attributable Assets”), at a price equal to the Fair Market Value of such Attributable
Assets. 
 (b) Disposed Stores shall no longer be Subject to the Program, and the purchaser of the Disposed Stores shall have
the right to offer any product, including Credit Cards, to the customers of such Disposed Stores. Any purchaser of Disposed Stores as contemplated by this Section may, but shall not be required to, contract with Purchaser for transition servicing of
the Attributable Assets on mutually agreeable terms. 
 (c) Upon a purchase of Attributable Assets by a third party pursuant to
Section 8.6(a)(i), Purchaser’s rights to use Cardholder Information for such Accounts and the Cardholders associated therewith shall cease. In the event Sears does not exercise its purchase right under Section 8.6(a)(i), Purchaser may
convert such Accounts to a product that does not bear a brand of a Sears Competitor. 
 8.7 Special Mutual Covenant. In
the event that, at any time after the third anniversary of the Effective Date, the Interchange Fee applicable to the Sears Co-Branded Card is 25% or more greater than the corresponding Interchange Fee in effect as of the Effective Date, or 25% or
more less than the corresponding Interchange Fee as in effect as of the Effective Date, the parties shall promptly use commercially reasonable efforts to appropriately revise the Program (including through amendment of Account Terms) to take into
account the increase or decrease in the Interchange Fee. 
 ARTICLE IX 

CONFIDENTIALITY 
 9.1 Confidential Information. During the Term and after its expiration or termination, except as expressly set forth in this Agreement, all documents, materials and information supplied by Sears or
Purchaser, or their respective Affiliates or representatives, to the other (or their Affiliates or representatives), or observed or otherwise obtained by one such party, in the course of due diligence in connection with entering into the Program and
the Purchase Agreement, the negotiation of this Agreement and each party’s performance of its obligations hereunder, including information concerning the content and/or conduct of any aspect of the respective businesses of Purchaser or Sears, a
party’s assets, properties, operations, business strategic objectives, methods of operation, marketing plans or techniques, technological specifications and developments, employee and business relationships, customer lists, Cardholder
Information, Credit Policy and each party’s financial results and the terms of this 

  
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Agreement are confidential and proprietary to the disclosing party (collectively, the “Confidential Information”). Confidential Information does not include any information that
(a) was known to the receiving party at the time of disclosure or was developed independently by such party without violating the terms hereof; (b) is generally available to and known by the public at the time of disclosure (other than as
a result of a disclosure directly or indirectly by the party or parties restricted from disclosing such information under this Section 9.1); (c) is in the public domain at the time of disclosure or becomes part of the public domain after
disclosure (other than as a result of disclosure directly or indirectly by the party or parties restricted from disclosing such information under this Section 9.1); or (d) is disclosed to the receiving party by a third party that is not
prohibited by Law or agreement from disclosing the same. 
 9.2 Protection of Confidential Information. Confidential
Information shall be used by each of Sears and Purchaser, and their respective Affiliates, solely in the performance of its obligations or the exercise of its rights pursuant to this Agreement. In connection with actions taken by Purchaser or Sears
as part of the Program, either Purchaser or Sears may disclose to their permitted contractors any of the Confidential Information that is reasonably necessary for such permitted contractors to perform their duties with respect to the Program;
provided, however, that Purchaser or Sears, as applicable, shall first have required their respective permitted contractors to sign a confidentiality agreement in form and substance reasonably suited to implementing the purposes of
this Section 9.2. Each party shall be responsible for causing its permitted contractors to maintain the confidentiality of the Confidential Information. Each party shall receive Confidential Information in confidence and shall not disclose
Confidential Information to any third party, except that nothing in this Section 9.2 shall prohibit Purchaser or Sears from disclosing the Confidential Information (i) to its respective accountants, independent auditors or attorneys as
necessary to execute their professional responsibilities, or to Governmental Authorities having jurisdiction over Purchaser or Sears, as applicable; (ii) to those of its respective employees, officers, directors, shareholders or, subject to the
requirement of an executed confidentiality agreement as described above, contractors who reasonably require access to such Confidential Information to carry out the purposes of this Agreement; (iii) in connection with legal proceedings,
provided, that the disclosing party shall provide notice of such intended disclosure to the other party, if not prohibited by law, and afford the other party an opportunity to intervene in such process in order to request confidential
treatment of such information; (iv) as required by applicable Laws or stock exchange regulation and (v) as agreed upon in writing by the other party, or as otherwise authorized by this Agreement. Each of Sears and Purchaser shall take all
reasonable steps and implement appropriate measures consistent with applicable Law to safeguard Confidential Information that is disclosed to it and its Affiliates or representatives and to ensure that no unauthorized Person shall have access to any
Confidential Information. Each party shall promptly report to the other party any unauthorized disclosure or use of any Confidential Information of the other party of which it becomes aware. Upon request or the expiration or termination of this
Agreement, except as expressly set forth in this Agreement, each party shall return to the other party all of the other party’s Confidential Information that is in its possession or control, except that each party may keep one copy to the
extent required by regulatory, legal or accounting requirements and shall not be required to extract any materials retained by a party’s systems as part of an automatic archival system or materials that become a part of a party’s board
materials or the board materials of its ultimate parent company. No disclosure by a party hereto of such party’s Confidential Information shall constitute a grant to the other party of any interest or right whatsoever in such Confidential
Information, which shall remain the sole property of the disclosing party. 

  
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 9.3 Confidentiality of Cardholder Information. During the Term and after the
expiration or termination of this Agreement, except as otherwise provided herein, Purchaser shall not (i) transfer, sell or disclose to any other Person, any Cardholder Information or any other data on Sears Customers learned by Purchaser as a
result of the Program, except as permitted under this Agreement; or (ii) use or permit the use of all or a portion of any Cardholder Information or such customer data for any purpose other than to carry out its obligations or to exercise its
rights under the Program Related Agreements or the Purchase Agreement. 
 9.4 Permissible Disclosures. This Article IX
shall not restrict (i) the disclosure by Purchaser of information relating to its relationship with a Cardholder to a credit reporting agency (but only to the extent permitted by applicable Law); (ii) the disclosure by Purchaser of
information to any Credit Card processor, subject to compliance with Section 4.6(f); or (iii) the disclosure contemplated by Section 4.6(f) or 13.5(a), subject, in each such case, to confidentiality and information privacy agreements
no less restrictive than those contained in this Article IX and applicable Law. 
 ARTICLE X 

REPRESENTATIONS AND WARRANTIES 
 10.1 Representations and Warranties of Purchaser. Purchaser hereby represents and warrants the following as of the date hereof: 

(a) Organization. Purchaser is a national banking association organized under the laws of United States and a Schedule III bank
under the Bank Act (Canada), and is in compliance with its Organizational Documents. Purchaser is a member in good standing of the Card Association. 
 (b) Capacity; Authority; Validity. Purchaser has all necessary corporate power and authority to enter into this Agreement and to perform all of the obligations to be performed by it under this
Agreement. This Agreement and the consummation by Purchaser of the transactions contemplated hereby have been duly and validly authorized by all necessary corporate action on the part of Purchaser, and this Agreement has been duly executed and
delivered by Purchaser, constitutes the valid and binding obligation of Purchaser and is enforceable in accordance with its terms. 
 (c) Conflicts; Defaults. Neither the execution and delivery of this Agreement by Purchaser, nor the consummation of the transactions contemplated herein by Purchaser, shall (i) conflict with,
result in the breach of, constitute a default under or accelerate the performance required by, the terms of any contract, instrument or commitment to which Purchaser is a party or by which Purchaser is bound; (ii) violate any Organizational
Document of Purchaser or applicable Law; or (iii) require any consent or approval under any judgment, order, writ, decree, permit or license to which Purchaser is a party or by which it is bound, other than, in the case of (i) or
(iii) above, breaches, defaults or accelerations that would not prevent or reasonably be expected to prevent Purchaser from executing this Agreement or impact 

  
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Purchaser’s compliance with the terms of this Agreement. Purchaser is not subject to any agreement (x) requiring fundamental changes in the operation of the Program; or (y) with
any Governmental Authority that would prevent the consummation of the transactions contemplated by, or its ongoing performance of, the Program Related Agreements. 
 (d) Litigation. There is no claim, litigation, proceeding, arbitration, investigation or material controversy pending before any Governmental Authority to which Purchaser is a party and by which it
is bound that would reasonably be expected to prevent Purchaser’s compliance with the terms of this Agreement. 
 10.2
Representations and Warranties of Sears. Sears hereby represents and warrants the following as of the date hereof: 

(a) Organization. Sears is a corporation duly incorporated and validly existing under the laws of Canada, and is in compliance
with its Organizational Documents. 
 (b) Capacity; Authority; Validity. Sears has all necessary power and authority to
enter into this Agreement and to perform all of the obligations to be performed by it under this Agreement. This Agreement and the consummation by Sears of the transactions contemplated hereby have been duly and validly authorized by all necessary
corporate action on the part of Sears, and this Agreement has been duly executed and delivered by Sears, constitutes the valid and binding obligation of Sears and is enforceable in accordance with its terms. 

(c) Conflicts; Defaults. Neither the execution and delivery of this Agreement by Sears, nor the consummation of the transactions
contemplated herein by Sears, shall (i) conflict with, result in the breach of, constitute a default under or accelerate the performance required by the terms of any contract, instrument or commitment to which Sears is a party or by which Sears
is bound; (ii) violate any Organizational Document of Sears or applicable Law; or (iii) require any consent or approval under any judgment, order, writ, decree, permit or license to which Sears is a party or by which Sears is bound, other
than, in the case of (i) or (iii) above, breaches, defaults or accelerations that would not prevent or reasonably be expected to prevent Sears from executing this Agreement or impact compliance with the terms of this Agreement. Sears is
not subject to any agreement. 
 (d) Litigation. There is no claim, litigation, proceeding, arbitration, investigation
or material controversy pending before any Governmental Authority to which Sears is a party and by which it is bound, that would reasonably be expected to prevent Sears’ compliance with the terms of this Agreement. 

ARTICLE XI 

INDEMNIFICATION AND LIMITATION OF LIABILITY 
 11.1 By Sears. Sears shall be liable to and shall indemnify, defend and hold harmless, Purchaser and its Affiliates and their respective directors, officers, employees and permitted assigns from
and against any Losses arising out of or resulting from the following, to the extent not caused by any act or omission of Purchaser or its Affiliates and to the extent related to the Program: 

(a) any act or failure to act by Sears in connection with the sale of any Merchandise through Sears Credit Cards; 

  
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 (b) any misrepresentation or unauthorized representation to third parties by employees of
Sears or its Subsidiaries made in connection with the Program; 
 (c) any breach by Sears of a covenant, representation or
warranty herein, in the Merchant Agreement or the Licensing Agreement; or 
 (d) the failure of Sears or its Subsidiaries to
comply with applicable Law. 
 11.2 By Purchaser. Purchaser shall be liable to and shall indemnify, defend and hold
harmless Sears, and its Subsidiaries and Affiliates and their respective directors, officers and employees and permitted assigns from and against any Losses arising out of or resulting from following, to the extent not caused by any act or omission
of Sears or its Affiliates and to the extent related to the Program: 
 (a) any products and services offered by Purchaser and
its Affiliates; 
 (b) any misrepresentation or unauthorized representation to third parties by employees of Purchaser or its
Affiliates made in connection with the Program; 
 (c) any breach by Purchaser of a covenant, representation or warranty herein
or in the Merchant Agreement or the Licensing Agreement; or 
 (d) the failure of Purchaser to comply with any Laws applicable
to Purchaser or its Affiliates. 
 11.3 Limitation of Liability. IN NO EVENT SHALL EITHER PARTY BE LIABLE FOR ANY
INDIRECT, CONSEQUENTIAL, INCIDENTAL, SPECIAL, PUNITIVE OR EXEMPLARY DAMAGES, WHETHER IN CONTRACT, TORT (INCLUDING NEGLIGENCE AND STRICT LIABILITY) OR ANY OTHER LEGAL OR EQUITABLE PRINCIPLES, OR FOR ANY LOSS OF PROFITS OR REVENUE, REGARDLESS OF
WHETHER SUCH PARTY KNEW OR SHOULD HAVE KNOWN OF THE POSSIBILITY OF SUCH DAMAGES. THE FOREGOING LIMITATIONS SHALL NOT APPLY TO CLAIMS FOR BREACH OF THE OBLIGATIONS OF CONFIDENTIALITY. 

11.4 Procedures for Indemnification. (a) In the event any claim is made, any suit or action is commenced, or any knowledge is
received of a state of facts that, if not corrected, would give rise to a right of indemnification of a party hereunder (“Indemnified Party”) by the other party (“Indemnifying Party”), the Indemnified Party will
give written notice to the Indemnifying Party as promptly as practicable, but, in the case of lawsuit, in no event later than the time necessary to enable the Indemnifying Party to file a timely answer to the complaint; provided that failure
to give timely notice shall not relieve the Indemnifying Party of its obligations hereunder except to the extent it is actually prejudiced thereby. Such written notice shall describe such claim in reasonable detail including the sections of this
Agreement which form the basis for such claim. The Indemnified Party shall make available to the Indemnifying 

  
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Party and its counsel and accountants at reasonable times and for reasonable periods, during normal business hours, all books and records of the Indemnified Party relating to any such possible
claim for indemnification, and each party hereunder will render to the other such assistance as it may reasonably require of the other (at the expense of the party requesting assistance) in order to insure prompt and adequate defense of any suit,
claim or proceeding based upon a state of facts that may give rise to a right of indemnification hereunder. 
 (b) Subject to
the terms hereof, the Indemnifying Party shall have the right to defend, or to direct the defense of, any such suit, claim or proceeding. The Indemnifying Party shall notify the Indemnified Party via facsimile transmission, with a copy by mail,
within 30 days (or sooner, if the nature of the claim so requires) of having been notified pursuant to Section 11.3(a), whether the Indemnifying Party elects to employ counsel and assume the defense of any such claim, suit or action. If the
Indemnifying Party does not timely notify the Indemnified Party of its election to assume the defense (after a second notice has been given any time within or after the time period described above), the Indemnifying Party shall be bound by any
determination in such suit, claim or proceeding or any compromise or settlement effected by the Indemnified Party, provided that the Indemnified Party shall not compromise or settle a suit, claim or proceeding that includes an admission of
liability of the Indemnifying Party or seeks any material non-monetary relief, without the written consent of the Indemnifying Party, which shall not be unreasonably withheld, conditioned or delayed. The Indemnifying Party shall institute and
maintain any such defense diligently and reasonably and shall keep the Indemnified Party fully advised of the status thereof. The Indemnified Party shall have the right to employ its own counsel if the Indemnifying Party so elects to assume such
defense, but the fees and expenses of such counsel shall be at the Indemnified Party’s expense, unless (i) the employment of such counsel shall have been authorized in writing by the Indemnifying Party; (ii) such Indemnified Party
shall have reasonably concluded that the interests of such parties are conflicting such that it would be inappropriate for the same counsel to represent both parties (in which case the Indemnifying Party shall not have the right to direct the
defense of such action on behalf of the Indemnified Party); or (iii) the Indemnifying Party shall not have employed counsel to take charge of the defense of such action within a reasonable time after electing to assume the defense thereof, and
in any of such events such reasonable fees and expenses shall be borne by the Indemnifying Party. 
 (c) The Indemnifying Party
shall have the right to compromise and settle any suit, claim or proceeding in the name of the Indemnified Party; provided, however, that the Indemnifying Party shall not compromise or settle a suit, claim or proceeding (i) unless
it indemnifies the Indemnified Party for all Losses arising out of or relating thereto and (ii) that includes an admission of liability of the Indemnified Party or seeks any material non-monetary relief, without the written consent of the
Indemnified Party, which consent shall not be unreasonably withheld, conditioned or delayed. Any final judgment or decree entered in any claim, suit or action for which the Indemnifying Party did not assume the defense in accordance herewith shall
be deemed to have been consented to by, and shall (subject to the other provisions hereof) be binding upon, the Indemnifying Party as fully as if the Indemnifying Party had assumed the defense thereof and a final judgment or decree had been entered
in such claim, suit or action, or with regard to such claim, suit or action by a court of competent jurisdiction for the amount of such settlement, compromise, judgment or decree. The Indemnifying Party shall be subrogated to any claims or rights of
the Indemnified Party as against any other Persons with respect to any amount paid by the Indemnifying Party under this Article XI. 

  
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 (d) Amounts owing under this Article XI shall be paid promptly upon written demand for
indemnification containing in reasonable detail the facts giving rise to such liability. 
 (e) The terms of this Article XI
shall survive the termination of this Agreement. 
 ARTICLE XII 

MERCHANT PROCEDURES 
 12.1 Extension of Credit. Subject to (i) the Credit Limits applicable to each Account, (ii) the terms and conditions in the Account Agreement and (iii) the Credit Policy, Purchaser
shall extend credit to holders of a Sears Credit Card in amounts set forth as the total for any purchase(s) reflected in Cardholder Information received by Purchaser. Purchaser shall instruct Cardholders to make cheques payable to Sears. 

12.2 Partner Merchants. (a) To the extent such agreements are not assigned as part of the Purchased Interests (as defined in
the Purchase Agreement), Purchaser shall use commercially reasonable efforts to enter into merchant processing agreements with Partner Merchants substantially in a form reasonably agreed by Sears and Purchaser, as soon as reasonably practicable
following the Effective Date. Sears and Purchaser shall cooperate in good faith to transition merchant processing with respect to Partner Merchants away from Sears, provided that Sears shall not be responsible for the payment of any merchant
transaction fees. 
 (b) Sears may add additional Third Party Non-Sears Merchants to the Program on then-current Program terms,
subject to the consent of the Purchaser (not to be unreasonably withheld or delayed). Sears may add additional Third Party Sears Merchants to the Program on then-current Program terms in its discretion. 

12.3 In-Store Payments. The parties shall continue to support In-Store Payments. If Sears, its Subsidiaries or Third Party Sears
Merchants shall receive any In-Store Payments, Sears shall forward such amounts to an account designated by Purchaser on the next Business day. Sears shall give or cause to be given to each Person making an In-Store Payment a receipt for such
payment and post payment to the Account as of the date of actual receipt by Sears. In-Store Payments shall be credited by Purchaser to the Account of the relevant Cardholder as of the date of actual receipt by Sears, its Subsidiaries or Third Party
Sears Merchants. Subject to applicable securitization documents with respect to the Accounts, all In-Store Payment shall be held in trust for the benefit of Purchaser from the time such In-Store Payments are received by Sears, its Subsidiaries or
Third Party Merchants until received by Purchaser or deposited in the account designated by Purchaser. 

  
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 ARTICLE XIII 
 TERM AND TERMINATION 
 13.1 Initial Term and Renewal; Proration. The
initial term of this Agreement shall commence on the Effective Date, and shall continue, unless sooner terminated pursuant to Section 13.2 or 13.3, until the tenth anniversary of the Effective Date (the “Initial Expiration
Date”). This Agreement shall automatically renew for additional, successive three-year terms unless either Sears or Purchaser delivers written notice of its election not to renew at least 12 months prior to (i) with respect to the
initial term, the Initial Expiration Date; or (ii) with respect to any renewal term, the expiration date of such renewal term. The expiration or termination of this Agreement shall not terminate, affect or impair any rights, obligations or
liabilities of a party hereto that may accrue prior to such expiration or termination or that, under the terms of this Agreement, continue after such expiration or termination. If the commencement, expiration or any earlier termination of this
Agreement causes this Agreement to be in effect for any period less than a full calendar year, the financial obligations of the parties under this Agreement shall be prorated for that period of time that is less than a full calendar year.

 13.2 Termination by Sears. Sears may terminate this Agreement at any time upon the occurrence of any of the following
events, by delivery of written notice of termination to Purchaser: 
 (a) after a Bankruptcy Event with respect to Purchaser
has occurred; 
 (b) after Purchaser fails to perform any of its material obligations or breaches any of its material covenants
hereunder or in the Licensing Agreement or Merchant Agreement, and such failure or breach shall have continued unremedied for 90 days after delivery of written notice from Sears of its intention to terminate this Agreement absent remedy of such
failure or breach within 90 days; 
 (c) after a Purchaser Material Adverse Effect has occurred; 

(d) after entering into an agreement for a Combination with another Person (“Combining Person”) (but subject to the
consummation of such Combination) that is subject to an existing agreement that would, if such Combination were consummated, conflict with this Agreement following the Combination (“Combination Conflicting Agreement”);
provided, that Sears has used commercially reasonable efforts to cause the Combining Person to (i) terminate such Combination Conflicting Agreement without a breach thereof, at Purchaser’s expense but with Purchaser’s consent
(including through the payment of any termination fees or liabilities); and (ii) amend such Combination Conflicting Agreement so that it is no longer a Combination Conflicting Agreement, at Purchaser’s expense; 

(e) Purchaser is no longer a Subsidiary of Parent or Transfers all or substantially all of its assets to a Person that is not a
Subsidiary of Parent or Transfers all or substantially all of the assets of the credit card business operated by it and its Subsidiaries to a Person (other than through a Securitization Transaction) that is not a Subsidiary of Parent; 

  
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 (f) Purchaser or its Affiliates acquires, directly or through merger, acquisition,
consolidation or other combination, a Sears Competitor or a Person that controls, directly or indirectly, a Sears Competitor or (ii) Parent engages in a Combination with a Sears Competitor or a Person that controls, directly or indirectly, a
Sears Competitor (“Acquisition Acts”); provided, that Purchaser shall not be deemed to have triggered this Section 13.2(f) as a result of (i) engaging in an Acquisition Act with a Sears Competitor that has worldwide
revenue of less than $250 million, (ii) engaging in the following business activities in the ordinary course: (x) asset management or private equity fund investments or (iii) foreclosing on collateral for a bona fide debt obligation
for so long as Purchaser is making commercially reasonable efforts to dispose of such assets or Person that represent a Sears Competitor as soon as reasonably practicable and in any event no later than prescribed by Law. 

(g) upon the occurrence of a Major Credit Event or a Major Service Event; 

(h) Purchaser fails to pay any amount owing under the Merchant Agreement (taking into account any permitted set-off payments) to Sears
when due (except to the extent Purchaser is disputing such amount in good faith), and such failure to pay remains unremedied for two Business Days after delivery by Sears of a written demand therefor to Purchaser; or 

(i) upon mutual agreement with Purchaser. 
 13.3 Termination by Purchaser. Purchaser may terminate this Agreement at any time upon the occurrence of any of the following events, by delivery of written notice of termination to Sears:

 (a) after a Bankruptcy Event with respect to Sears has occurred; 

(b) after Sears fails to perform any of its material obligations or breaches any of its material covenants hereunder or in the Licensing
Agreement or Merchant Agreement, and such failure or breach shall have continued unremedied for 90 days after delivery of written notice from Purchaser of its intention to terminate absent remedy of such failure or breach within 90 days; or

 (c) upon mutual agreement with Sears. 
 (d) Upon six (6) months’ prior notice, if as a result of a disposition or series of related dispositions of any portion of the Sears Stores and related purchase of Attributable Assets pursuant
to Section 8.6(a) Cardholder Accounts Receivables at any time equals less than 80% of the average Cardholder Accounts Receivables over the twelve (12) months preceding closing. 

13.4 Effective Termination Date; Effect of Notice of Termination or Non-Renewal. (a) Effective Termination Date. The
effective termination date of this Agreement (the “Termination Date”) shall be (i) in the event a notice of non-renewal is delivered pursuant to Section 13.1, the Initial Expiration Date or the expiration date of the
then-current renewal term, as applicable; (ii) in the event a notice of termination is delivered pursuant to Section 13.2 or 13.3 (other than pursuant to Section 13.2(a), 13.2(d) or 13.3(a)), the date specified in such notice, which
shall not be less than 90 days after the date notice of termination is received by the non-

  
 45 

 
terminating party; (iii) upon the occurrence of any event described in Sections 13.2(a) or 13.3(a), immediately without requirement of any notice and (iv) in the event of a notice of
termination delivered pursuant to Section 13.2(d), immediately prior to the consummation of the Combination that is the subject of such notice. 
 (b) Continuing Performance. Subject to Section 13.6, Sears and Purchaser shall continue to perform their respective obligations under this Agreement through the later of the Termination Date
or, if Sears has elected to exercise its Repurchase Option, the closing of the Repurchase Option (the “Repurchase Closing Date”). During the period between (i) notice of termination and (ii) the Termination Date or, if
applicable, the Repurchase Closing Date, (i) Purchaser shall have no new obligation to spend any additional amounts under the Marketing Plan or the Marketing Budget, other than existing requirements that cannot be terminated without a loss of
service or value to Cardholders or Financial Products Customers and Sears’ obligations hereunder shall be reduced accordingly; (ii) Purchaser shall not solicit any Cardholders, Financial Products Customers or any individual on the
Cardholder List for any Credit Card (other than a Sears Credit Card); and (iii) Sears and Purchaser shall mutually agree on all customer communications relating to termination of this Agreement. Notwithstanding anything to the contrary
contained in this Agreement, in the event that Sears seeks to terminate this Agreement pursuant to Section 13.2(d), Purchaser shall agree to release Sears from any obligation under this Agreement, and to take any other action, as may be
necessary to avoid the conflict referred to in Section 13.2(d). 
 (c) Provision of Information. Upon notice of
termination or non-renewal, and upon request by Sears, Purchaser shall disclose to Sears, or any Person designated by Sears, information concerning the Accounts for purposes of determining whether to exercise the Repurchase Option and, upon
exercise, for purposes of effectuating such exercise; provided that Sears shall first have obtained a written confidentiality agreement from each such Person in form and substance similar to the Confidentiality Agreement (as defined in the
Purchase Agreement). Purchaser shall cooperate with Sears and any such Person(s) in providing information concerning the Sears Repurchase Assets. 
 13.5 Repurchase of Assets Upon Termination or Expiration. 
 (a)
Repurchase Option. Upon any delivery of a notice of non-renewal pursuant to Section 13.1, or upon delivery of notice of termination of this Agreement pursuant to Section 13.2 or 13.3, Sears shall have the option to purchase, or
arrange for the purchase by another Person, from Purchaser (i) all (but not less than all) of the Accounts, along with all (but not less than all) of the Accounts Receivables originated under such Accounts, together with all related Account
Documentation and other data, books and records and Cardholder Information that is in existence as of the date of such purchase; (ii) subject to Section 3.3(e), all (but not less than all) of the Financial Products, together with all
related Financial Products Documentation and other data, books and records and Cardholder Information that is in existence as of the date of such purchase; and (iii) at Sears’ election, any other assets, if any, including real property,
equipment, furniture, fixtures and other tangible personal property that are primarily used in connection with the Program (collectively, the “Sears Repurchase Assets”), on the terms and conditions set forth in this Article XIII.
The parties agree to negotiate in good faith a service agreement with respect to the infrastructure repurchased pursuant to Section 13.5 (a)(iii), with a 
 term of not less than twelve (12) months, which will enable both parties to continue their respective operations without interruption until such time as they are able to operate independently.

  

  
 46 

 (b) Repurchase Notice. Simultaneously with the delivery by Sears to Purchaser of a
notice of non-renewal or termination for which Sears has a Repurchase Option, or within 90 days after delivery by Purchaser to Sears of a notice of non-renewal or termination for which Sears has a Repurchase Option, whichever is applicable, Sears
shall notify Purchaser of whether it shall exercise the Repurchase Option. If Sears fails to timely deliver notice of exercise of the Repurchase Option to Purchaser, Sears shall be deemed to have elected not to exercise the Repurchase Option. Any
notice of exercise of the Repurchase Option shall include the name of an Independent Appraiser selected by Sears. 
 (c)
Repurchase Price Determination. The purchase price (“Repurchase Price”) for the Sears Repurchase Assets will be determined in accordance with this Section 13.5(c). In the event this Agreement is terminated pursuant to
Sections 13.1, 13.2(a)-(c) or 13.2(e)-(i) or 13.3(c), the Repurchase Price will be equal to the fair market value of the Sears Repurchase Assets (determined in accordance with the procedures outlined below, but which shall not include any
value for Accounts that have been charged-off, or have had electronic notice of bankruptcy or notice of fraud given) (“Fair Market Value”). In the event this Agreement is terminated pursuant to Sections 13.2(d), 13.3(a), (b) or
(d), the Repurchase Price will be equal to the greater of (a) the Fair Market Value and (b) the Scheduled Repurchase Price. Upon receipt of notice of Sears’ election to exercise the Repurchase Option, Purchaser shall also nominate an
Independent Appraiser and provide written notice of such nomination to Sears within 30 days of receipt of the exercise notice from Sears. Each of Sears and Purchaser shall promptly retain their respective nominated Independent Appraisers and provide
such information to both Independent Appraisers as is necessary to permit each of the Independent Appraisers to provide a valuation of the Sears Repurchase Assets no later than a date selected by the parties for such purpose (which date will be not
later than 45 days after the date on which the parties have agreed on the designation of the Independent Appraisers); provided, that the information provided to both Independent Appraisers shall be identical. Such appraisals shall be
performed on the basis of the assumptions set forth in Section 13.5 of the Disclosure Letter. The Fair Market Value shall be the average of the valuations received from the Independent Appraisers, and such averaged valuation shall not be
subject to Section 14.22 and shall be final and binding on the parties and enforceable in any court having jurisdiction, unless the valuations made by the two Independent Appraisers differ by more than an amount equal to 5% of the lesser of the
two valuations (when expressed in Canadian dollar terms) (such difference, “De Minimis Difference”). If the valuations made by the two Independent Appraisers differ by more than a De Minimis Difference, such Independent Appraisers
will jointly select a third Independent Appraiser of recognized standing and experience in valuing credit card portfolios, who shall be retained jointly and compensated jointly and equally by Sears and Purchaser. If the two Independent Appraisers
fail to jointly agree on a third Independent Appraiser within 15 days of the receipt by both parties of the evaluation of the other party’s Independent Appraiser, at the request of any party, such Independent Appraiser shall be selected by the
ADR Chambers of Toronto within 15 days of such request. Such third Independent Appraiser will provide a valuation of the Sears Repurchase Assets as of the appraisal date selected by the parties (as described above) using the same information that
was made available to the initial two 

  
 47 

 
Independent Appraisers, and based upon the assumptions set forth in Section 13.5 of the Disclosure Letter. If (i) the initial valuations delivered by the initial two Independent
Appraisers differ by an amount equal to or less than 4% of the lesser of the two initial valuations; and (ii) the valuation delivered by the third Independent Appraiser is between the two initial valuations delivered by the initial two
Independent Appraisers or differs from either of such valuations by any amount equal to or less than a De Minimis Difference, the Fair Market Value will be the average of the three appraisals, and such averaged valuation shall be final and binding
on the parties and enforceable in any court having jurisdiction. If (i) the initial valuations delivered by the initial two Independent Appraisers differ by an amount equal to or less than 4% of the lesser of the two initial valuations and the
third appraisal is not between the two initial valuations delivered by the initial two Independent Appraisers and differs from both of such valuations by an amount greater than a De Minimis Difference; or (ii) the valuations delivered by the
initial two Independent Appraisers differ by an amount greater than 4% of the lesser of the two initial valuations as of the appraisal date, the Fair Market Value will be the average of the two valuations received from any two of the three
Independent Appraisers that are closest in amount to each other, and the third valuation will be disregarded, and such averaged valuation shall not be subject to Section 14.23 and be final and binding on the parties and enforceable in any court
having jurisdiction. The expenses of any Independent Appraiser nominated by Sears shall be borne by Sears and the expense of any Independent Appraiser nominated by Purchaser shall be borne by Purchaser. 

(d) Repurchase Agreement. After the purchase price for the Sears Repurchase Assets is established, Purchaser and Sears shall
cooperate to negotiate in good faith as soon as practicable (but in no event later than 60 days following the determination of the purchase price) a definitive purchase agreement (the “Repurchase Agreement”) upon terms, including
conditions, representations, warranties and indemnities, that are customary and where applicable, substantially similar to the Purchase Agreement. Purchaser shall not unreasonably withhold, condition or delay its execution of the Repurchase
Agreement or any other documents necessary to effectuate such sale. The parties to the Repurchase Agreement shall use reasonable best efforts to ensure that the Repurchase Closing Date occurs as promptly as reasonably practicable following the
execution thereof. Any buyer acting on behalf of Sears in the exercise of the Repurchase Option shall be bound by, and have the rights set forth in, this subsection as if it were Sears. 

(e) Treatment of Securitized Assets. In the event that Purchaser has securitized or participated any of the Accounts, or the
Accounts Receivables included therein, that are included in the Sears Repurchase Assets, the parties will cooperate to transfer such assets, or Purchaser’s interest in and servicing rights with respect to such assets, to Sears or its designee
on reasonable terms under a Repurchase Agreement and at Sears or its designees expense. 
 (f) Orderly Transfer.
Purchaser shall use commercially reasonable efforts to assist Sears or its designee to convert the processing and servicing of the Sears Repurchase Assets to Sears, its assignee or its processor, as the case may be, as soon as practicable after the
Repurchase Closing Date. The parties to the Repurchase Agreement shall negotiate and enter into a transition services agreement, substantially in the form of the Transition Services Agreement, for Purchaser to service the Accounts until the
conversion date occurs and for a period of up to one year at its election, any other services that may be reasonably necessary in connection with the Repurchase Agreement. 

  
 48 

 13.6 Treatment of Assets Upon Termination. (a) If Sears purchases, or arranges
for the purchase of, the Sears Repurchase Assets, and the Repurchase Closing Date is to occur after the original date of expiration or termination of this Agreement, subject to the last sentence of Section 13.4(b), this Agreement shall be
extended and shall remain in full force and effect until the Repurchase Closing Date; provided, that, commencing on the Termination Date, (i) neither Purchaser (nor any Affiliate thereof or any third party on Purchaser’s behalf)
shall solicit any Cardholder, Financial Products Customer or holder of any Excluded Financial Product for any products, including Credit Cards or General Financial Services Products; and (ii) Purchaser shall thereafter have no rights to use any
Cardholder Information, Confidential Information or any other information supplied by Sears with respect to the Program or this Agreement, except to perform any obligations with respect to the servicing of the Accounts and Financial Product accounts
as contemplated hereby. 
 (b) In the event Sears does not purchase or arrange for the purchase of the Sears Repurchase Assets
in accordance with this Agreement, from the Termination Date, (i) Purchaser shall, within 180 days, cease to use the Sears Licensed Marks and shall not claim any right, title, or interest in or to the Sears Licensed Marks granted pursuant to
this Agreement and the Licensing Agreement; (ii) Purchaser shall, within 180 days following such date (the “Post-Termination Period”), reissue at its expense new card plastics not bearing any Sears Licensed Marks for Accounts
and shall substitute or cancel the Sears Proprietary Cards; (iii) during and after the Post Termination Period, Purchaser shall not market the Program (provided, however, that Purchaser may conclude any solicitation that is
required by applicable Law) and (iv) for five years following the Termination Date, Purchaser shall have no right to use, or to permit an Affiliate or third party to use, any Cardholder Information or other information supplied by Sears with
respect to the Program or this Agreement to market or promote a Credit Card or other General Financial Services Product to Cardholders, Financial Product Customers or Sears Customers together with a Sears Competitor. 

13.7 Other Termination Provisions. If this Agreement terminates for any reason: 

(a) For the avoidance of doubt, it is understood that Sears shall be free to issue, by itself or through others, the Sears Credit Cards
or any other Credit Cards, including Credit Cards bearing Sears Licensed Marks. 
 (b) At the request of either Sears or
Purchaser, the other party shall reasonably cooperate with such requesting party, at such requesting party’s expense, to the extent necessary to satisfy any Law applicable to such requesting party. 

(c) Sears and Purchaser shall mutually agree on all communications to Cardholders notifying them of the termination of the Program.

  
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 13.8 Survival. The terms of Articles IX, X, XI and XIV, Sections 6.5, 8.1, 13.4,
13.5(a), (e) and (f), 13.6, 13.7 and 13.8 shall survive the expiration or termination of this Agreement. 
 ARTICLE XIV

 GENERAL 
 14.1 Successors and Assigns. All terms and provisions of this Agreement will be binding upon and will inure to the benefit of the parties and their respective Successors and permitted assigns.

 14.2 Entire Agreement. The Program Related Agreements, together with the Purchase Agreement, and the Transition
Services Agreement, embody the entire understanding of the parties as of the date hereof, and there are no further or other agreements or understandings, written or oral, in effect between the parties, relating to the subject matter of this
Agreement. 
 14.3 Relationship of the Parties. The parties agree that in performing their responsibilities pursuant to
this Agreement they are in the position of independent contractors. This Agreement is not intended to create, nor does it create and shall not be construed to create, a relationship of partners or joint venturers, fiduciaries or any association for
profit between and among Purchaser and Sears or any of their respective Affiliates. None of the parties shall take any action to circumvent its obligations under this Agreement or with the primary purpose of depriving the other parties of their
rights hereunder. 
 14.4 Force Majeure. Subject to Section 5.6(c), in the event that a party fails to perform its
obligations under this Agreement in whole or in part as a consequence of events beyond its control and not caused by its negligence or fault (including acts of God, fire, explosion, accident, floods, embargoes, epidemics, war, acts of terrorism,
nuclear disaster or riot), such failure to perform shall not be considered a breach of this Agreement during the period of such disability; provided that, such period shall be no longer than 30 days. In the event of any force majeure
occurrence as set forth in this Section 14.4, the disabled party shall use commercially reasonable efforts to meet its obligations as set forth in this Agreement. The disabled party shall promptly and in writing advise the other party if it is
unable to perform due to a force majeure event, the expected duration of such inability to perform and of any developments (or changes therein) that appear likely to affect the ability of that party to perform any of its obligations hereunder in
whole or in part. During the period when the disabled party is unable to perform its obligations hereunder, the other party shall not be required to perform any of its obligations that cannot be performed as a result of the disabled party’s
nonperformance due to force majeure. 
 14.5 Books and Records. Each of Sears and Purchaser shall maintain books of
account and records, in accordance with its standard practices and procedures, of all transactions arising in connection with its obligations pursuant to this Agreement for a period of six years (or, in the case of litigation or regulatory process,
until such process concludes) from expiration or earlier termination. In addition to, and notwithstanding the foregoing, to the extent Sears or Purchaser has possession of any records required to be maintained by the other party pursuant to

  
 50 

 
applicable Law, the party with possession shall maintain such records in such form and for such time periods as are provided for in such Law. Each such party shall furnish to the other party all
such information concerning transactions the requesting party may reasonably request; provided, however, that no party shall be required to divulge any records to the extent prohibited by applicable Law. 

14.6 Press Release. The parties shall agree on any initial press release(s) announcing the execution and delivery of this
Agreement. From the date hereof until 30 days after the termination of this Agreement, Sears and Purchaser (i) will consult with each other before issuing, or permitting any agent or Affiliate to issue, any press releases with respect to the
Program, this Agreement, the Licensing Agreement or the transactions contemplated hereby and thereby and (ii) will give due consideration to any comments of the other party. 

14.7 Audits. (a) From time to time during the Term, upon reasonable notice by Sears, Purchaser will allow Sears or a third
party, selected by Sears and reasonably acceptable to Purchaser, to perform, at times and in a manner that does not unreasonably disrupt the operations of Purchaser, an audit to review any aspect of Purchaser’s operation of the Program,
including to determine whether Purchaser is in compliance with all of its obligations contained in this Agreement. 
 (b) From
time to time during the Term, upon reasonable notice by Purchaser, Sears will allow Purchaser or a third party, selected by Purchaser and reasonably acceptable to Sears, to perform, at times and in a manner that does not unreasonably disrupt the
operations of Sears, an audit to determine whether Sears is in compliance with all of its obligations contained in this Agreement. 
 14.8 Change in Law; Severability. If a Change in Law is applicable to any provision of this Agreement, the parties will perform such terms to the maximum extent permitted under Law. If any
provision of this Agreement or the application of any such provision is invalid, illegal or unenforceable in any jurisdiction, such invalidity, illegality or unenforceability shall not affect any other provision of this Agreement or invalidate or
render unenforceable such provision in any other jurisdiction. To the extent permitted by applicable Law, the parties waive any provision of Law that renders any provision of this Agreement invalid, illegal or unenforceable in any respect. The
parties shall, to the extent lawful and practicable, use commercially reasonable efforts to enter into arrangements to reinstate the intended benefits, net of the intended burdens, of any such provision held invalid, illegal or unenforceable.

 14.9 Assignment. Other than as set forth in Article XIII with respect to the Sears Repurchase Option and as
hereinafter provided, a party hereto shall not Transfer this Agreement or any of its rights hereunder without the prior written consent of the other parties hereto (which consent may be withheld in such other party’s sole discretion), and any
such purported Transfer without such consent shall be void. Notwithstanding the foregoing, Sears Bank may (without the consent of the Purchaser) assign any or all of its rights or obligations hereunder to Sears in connection with the winding up or
dissolution of Sears Bank and thereafter Sears Bank shall forever be completely released from any and all of its obligations hereunder. 

  
 51 

 14.10 Expenses. Except as is otherwise specifically provided in this Agreement, each
party shall pay its own costs and expenses in connection with this Agreement and the transactions contemplated hereby, including all regulatory fees, attorneys’ fees, accounting fees and other expenses. 

14.11 Amendment and Waiver. No amendment to this Agreement shall be effective unless it shall be in writing and signed by each
party hereto. Any failure of a party to comply with any obligation, covenant, agreement or condition contained in this Agreement may be waived by the party entitled to the benefits thereof only by a written instrument duly executed and delivered by
the party granting such waiver, but such waiver or failure to insist upon strict compliance with such obligation, covenant, agreement or condition shall not operate as a waiver of, or estoppel with respect to, any subsequent or other failure of
compliance. 
 14.12 Remedies; Specific Performance. (a) The rights and remedies of the parties under this Agreement
are cumulative and are not exclusive of any rights or remedies that the parties would otherwise have under this Agreement or otherwise. 
 (b) The parties hereto acknowledge that money damages are not an adequate remedy for violations of this Agreement and that any party hereto may, in its sole discretion, apply to the court set forth in
Section 14.20 for specific performance, or injunctive, or such other relief as such court may deem just and proper, in order to enforce this Agreement or prevent any violation thereof, and to the extent permitted by applicable Law, each party
hereto waives any objection to the imposition of such relief. 
 (c) In no event will any party to this Agreement be liable to
another party thereto for special, indirect, punitive or incidental damages, lost profits, lost savings or any other consequential damages, even if such party has been advised of the possibility of such damages. 

14.13 Table of Contents; Headings. The Table of Contents and Article and Section headings of this Agreement are for convenience of
reference only and shall not affect the construction of or be taken into consideration in interpreting this Agreement. 
 14.14
Limitation on Rights of Others. Nothing in this Agreement, whether express or implied, shall give or be construed to give any Person (other than the parties thereto and their permitted Successors and assigns) any legal or equitable right,
remedy or claim under or in respect of this Agreement, unless such Person is expressly stated in this Agreement to be entitled to any such right, remedy or claim. 
 14.15 Counterparts; Effectiveness. This Agreement may be executed by the parties hereto in separate counterparts, each of which when so executed and delivered shall be an original, but all such
counterparts shall together constitute but one and the same contract. 
 14.16 Payment Terms; Initial Periods. All
amounts in this Agreement are stated and shall be paid in Canadian currency. Where this Agreement requires performance or payments to be measured as of calendar measurement periods (e.g., calendar months or quarters) and the Effective Date
falls prior to the commencement of such period, the period between the Effective Date and the commencement of such initial calendar period shall be added to such initial calendar period and any requirements therewith shall be extended on a pro rata
basis. 

  
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 14.17 Drafting. Each party acknowledges that its legal counsel participated in the
drafting of this Agreement. The parties hereby agree that the rule of construction that ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of this Agreement to favour one party over any other.

 14.18 Governing Law. This Agreement shall in all respects be governed by and construed in accordance with the laws of
the province of Ontario and the laws of Canada applicable therein. 
 14.19 Taxes. Any party that provides services under
this Agreement (a “Vendor”) to the other party shall invoice (by jurisdiction) the recipient of such services for any sales, use goods and services, value-added and other gross receipts-based taxes imposed against or upon such
services (“Sales Taxes”). In addition to any amounts otherwise payable in respect of services provided under this Agreement, the recipient of such services shall be responsible for any Sales Taxes arising in respect of the provision
of such services and shall either (i) pay such Sales Taxes to Vendor (and Vendor shall remit the amounts so received from the recipient of such services to the applicable taxing authority) or (ii) provide Vendor with a certificate or other
acceptable proof evidencing an exemption from liability for such Sales Taxes. 
 14.20 Jurisdiction; Consent to Service of
Process. Each party irrevocably submits to the jurisdiction of the courts of competent jurisdiction in the Province of Ontario in respect of any action or proceeding relating in any way to this Agreement. The parties shall not raise any
objection to the venue of any proceedings in any such court, including the objection that the proceedings have been brought in an inconvenient forum. 
 14.21 Notices. All notices and other communications to be given to any party under this Agreement shall be given by prepaid first-class mail, by facsimile or other means of electronic communication
or by hand-delivery as hereinafter provided. Any such notice or other communication, if mailed by prepaid first-class mail at any time other than during a general discontinuance of postal service due to strike, lockout or otherwise, shall be deemed
to have been received on the fourth Business Day after the post marked date thereof, or if sent by facsimile or other means of electronic communication, shall be deemed to have been received on the Business Day following the sending, or if delivered
by hand shall be deemed to have been received at the time it is delivered to the applicable address noted below either to the individual designated below or to an individual at such address having apparent authority to accept deliveries on behalf of
the addressee. Notice of change of address shall also be governed by this Section 14.21. In the event of a general discontinuance of postal service due to strike, lock-out or otherwise, notices or other communications shall be delivered by hand
or sent by facsimile or other means of electronic communication and shall be deemed to have been received in accordance with this section 14.21. Notices and other communications shall be addressed as follows: 

 

	 	(a)	If to Sears or Sears Bank: 

Sears Canada Inc. 
 222 Jarvis Street 
 Toronto, Ontario 

M5B 2B8 

Attention: Secretary 
 Fax No.: (416) 941-2321 

  
 53 

 with a copy to: 
 Wachtell, Lipton, Rosen & Katz 
 51 West 52nd Street 

New York, NY 10019 
 Attention: Igor Kirman 
 Fax No.: 212-403-2393 

with a copy to: 
 Torys LLP 
 79 Wellington St. W. 

Box 270, TD Centre 
 Toronto, Ontario 
 M5K 1N2 

Attention: Kathleen L. Keller-Hobson 
 Fax No.: 416-865-7380 
  

	 	(b)	If to the Purchaser: 

 JPMorgan
Chase Bank, N.A. (Toronto Branch) 
 Royal Bank Plaza 
 Floor 1800 
 Toronto, Ontario 

M5J 2J2 

Attention: Sara Collins 
 Fax No.: (416) 981-9133 
 with a copy to: 

Chase Bank USA, N.A. 
 3 Christina Center 
 10th Floor 

201 North Walnut Street 
 Wilmington, DE 19801 
 Attention: Robert Birnbaum 

Fax No.: (302) 282-8361 

  
 54 

 with a copy to: 
 Osler, Hoskin & Harcourt LLP 
 Suite 6100, One First Canadian Place

 Toronto, Ontario, M5X 1B8 
 Attention: John Jason 
 Fax No.: (416) 862-6666 

14.22 Escalation. Upon the occurrence of any event that, pursuant to the express provisions of this Agreement, is subject to the
escalation provisions set out in this Section 14.22, the parties will attempt to resolve the subject of the escalation promptly by negotiations between the Chief Executive Officer and a senior executive designated by the Chief Executive Officer
of each of Sears and the Purchaser (collectively, the “Senior Officers”). The Senior Officers will meet in person or by telephone within 10 Business Days after the notice of the dispute and attempt in good faith to resolve the
subject matter of the escalation. 
 [Remainder of Page Intentionally Left Blank. Signature Page Follows.] 

  
 55 

 IN WITNESS WHEREOF, this Agreement has been executed on behalf of each of the parties
hereto as of the day and year first above written. 
  

					
	SEARS CANADA INC.
		
	By	 	

		 	Name:	 	David B. Merkley
		 	Title:	 	Senior Vice-President and Chief Financial Officer
		
	By	 	

		 	Name:	 	Rudolph R. Vezér
		 	Title:	 	Senior Vice-President and Chief Legal Officer
	
	SEARS CANADA BANK
		
	By	 	

		 	Name:	 	G. Bruce Clark
		 	Title:	 	Chief Executive Officer
		
	By	 	

		 	Name:	 	Rudolph R. Vezér
		 	Title:	 	Secretary
	
	 JPMORGAN CHASE BANK, N.A.
 (TORONTO BRANCH)

		
	By	 	

		 	Name:	 	James Schimmel
		 	Title:	 	Vice-President

  
 56 

 EXHIBIT I 
 MERCHANT AGREEMENT 
 BY AND BETWEEN 

SEARS CANADA INC. 
 AND 
 JPMORGAN CHASE BANK, N.A. (TORONTO BRANCH) 

MERCHANT AGREEMENT dated as of November 15, 2005 (the “Effective Date”), by and among SEARS CANADA
INC., a corporation incorporated under the laws of Canada (“Sears”), and JPMORGAN CHASE BANK, N.A. (TORONTO BRANCH), a national banking association organized under the laws of the United States and a Schedule III bank
under the Bank Act (Canada) (“Purchaser”) (this “Merchant Agreement”). 
 RECITALS

 WHEREAS, Sears is, among other things, engaged in the business of selling merchandise and services through retail
stores, catalogues and other means; 
 WHEREAS, Sears and JPMorgan Chase & Co. (“JPMC”) have entered
into the Purchase Agreement, dated as of August 31, 2005 (the “Purchase Agreement”), as amended, pursuant to which JPMC has agreed to acquire, or cause to be acquired, from Sears, and Sears has agreed to sell, or cause to be
sold, to JPMC or an Affiliate of JPMC, substantially all of the assets of the Business (as defined in the Purchase Agreement), on the terms and subject to the conditions of the Purchase Agreement; 

WHEREAS, Sears, Sears Canada Bank, a Schedule I bank under the Bank Act (Canada), and Purchaser have entered into a Program
Agreement, dated as of even date hereof (the “Program Agreement”), pursuant to which Sears and Purchaser will issue and service Sears Credit Cards (as defined in the Purchase Agreement), issue existing and new credit and financial
products, process and service related accounts and engage in certain joint marketing efforts, on the terms and subject to the terms and conditions set forth in the Program Agreement; and 

WHEREAS, Sears desires to enter into a relationship with Purchaser for, among other things, the acceptance of the Sears Credit
Cards in Stores (as such terms are defined in the Program Agreement). 
 NOW, THEREFORE, in consideration of the premises
and mutual covenants hereinafter set forth, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Purchaser and Sears hereby agree as follows: 

ARTICLE I—DEFINITIONS 
 Capitalized terms used in this Merchant Agreement, if not hereinafter defined, have the meanings given to them in the Program Agreement. 

 1.1 “Authorization” means a valid authorization code provided by Purchaser
to Sears with respect to a Card Sale when Sears is presented with an Account number. 
 1.2 “Authorization
Center” means the system accessed by Sears for the purpose of obtaining authorization codes and instructions on handling Card Sales. 
 1.3 “Card Association Regulations” means the by-laws, procedures, rules and regulations of the Card Association, as they may be amended from time to time by the Card Association.

 1.4 “Card Sale” is a sale of Merchandise by Sears to a Cardholder through the use of a Sears Credit Card or
to a Third Party Sears Merchant or a Third Party Non Sears Merchant through the use of a Sears Proprietary Card. 
 1.5
“Card Sale Date” means the transaction date for any Card Sale. 
 1.6 “Co-Branded Card Sale” is a
sale of Merchandise by Sears to a Cardholder through the use of a Sears Co-Branded Card. 
 1.7 “Chargeback” is
the reversal of a charge against a Card Sale previously presented by Sears to Purchaser for payment, in accordance with Section 3.3 of this Merchant Agreement and Section 3 of the Rules. 

1.8 “Cost of Funds Adjustment” will have the meaning set forth in Section 3.2 and be calculated as more
particularly described in Schedule B. 
 1.9 “Designated Participant” will have the meaning set forth in
Section 12.22. 
 1.10 “Electronic Card Capture Device” means a device intended to electronically transmit
Sales Data to Purchaser, which can be either a physical or virtual “point of sale” device. 
 1.11 “Merchant
Agreement” has the meaning set forth in the preamble hereto. 
 1.12 “Merchant Operating Rules and
Regulations” or the “Rules” means, with respect to the Sears Credit Cards, the rules outlined in Schedule A attached hereto and incorporated herein by reference, as may be amended from time to time in accordance with
Section 12.22. 
 1.13 “Processor” means any organization, including Purchaser, that captures Sales
Transactions on behalf of Sears. 
 1.14 “Program Agreement” has the meaning set forth in the recitals hereto.

 1.15 “Purchase Agreement” has the meaning set forth in the recitals hereto. 

  
 2 

 1.16 “Refund” means any non-cash refund, return, or price adjustment of a
Card Sale made through the use of a Sears Credit Card. 
 1.17 “Refund Record” means all documents or data used
to evidence any Refund. 
 1.18 “Representment” means a representment as set forth in Schedule A,
Section 3.3. 
 1.19 “Sales Data” means data representing Sales Transactions related to a Card Sale,
Refund or credit. 
 1.20 “Sales Record” means all documents or data presented to Purchaser as evidence of a
Card Sale or credit. 
 1.21 “Sales Transaction” means any single Card Sale, Refund or Representment to an
Account by Sears and processed through Purchaser or a processor, including an Authorization and ticket capture as a single transaction. 
 1.22 “Sears” has the meaning set forth in the preamble hereto. 

1.23 “Settlement Account” means the account maintained at a depository institution and designated by Sears to which
funds due to Sears for Card Sales are credited. 
 1.24 “Settlement Amounts” means the daily amounts resulting
from clearing Card Sales, including sales volume, representments, any taxes collected and other agreed upon credits, minus Chargebacks, Refunds, any agreed upon fees and other agreed upon debits. 

1.25 Construction. References in this Merchant Agreement to any gender include references to all genders, and references in this
Merchant Agreement to the singular include references to the plural and vice versa. Unless the context otherwise requires, the term “party” when used in this Merchant Agreement means a party to this Merchant Agreement. References in this
Merchant Agreement to a party or other Person include their permitted Successors and assigns. The words “include,” “includes” and “including” when used in this Merchant Agreement shall be deemed to be followed by the
phrase “without limitation.” Unless the context otherwise requires, references in this Merchant Agreement to Articles, Sections and Schedules shall be deemed references to Articles and Sections of, and Schedules to, this Merchant
Agreement. Unless the context otherwise requires, the words “hereof,” “hereby” and “herein” and words of similar meaning when used in this Merchant Agreement refer to this Merchant Agreement in its entirety and not to
any particular Article, Section or provision of this Merchant Agreement. 

  
 3 

 ARTICLE II—CERTAIN COVENANTS 

2.1 Card Association Regulations. The parties agree that, to the extent the Card Association Regulations apply to agreements of
the same type as this Merchant Agreement, and the Card Association Regulations require either party to render performance to a Cardholder at a higher level than required herein or in the Rules, the Card Association Regulations shall control.
Notwithstanding the foregoing, with respect to Sears Co-Branded Cards, no payment made by Purchaser to Sears in connection with a Card Sale may be charged back to Sears except to the extent such Chargeback is required by the Rules. 

ARTICLE III—PURCHASER OBLIGATIONS 
 3.1 Purchaser Services. Purchaser will process, for Sears, Sales Transactions on Sears Credit Cards and shall provide to Sears the following additional services with respect to Sears Credit
Cards: 
  

	 	3.1.1	Provide real-time and batch processing capabilities for Authorizations, according to the Service Standards set forth in Schedule C to the Program Agreement;

  

	 	3.1.2	Provide a 24-hour Authorization help desk, according to the Service Standards set forth in Schedule C to the Program Agreement; 

 

	 	3.1.3	Provide electronic transmission of Sales Data into Purchaser’s systems; 

 

	 	3.1.4	Send settlement, Chargeback, and other agreed-upon transaction reports to Sears, in a form and format mutually agreed upon by the parties. 

 

	 	3.1.5	Monitor and act in accordance with industry practice in effect from time to time to prevent and mitigate fraud; 

 

	 	3.1.6	Answer Sears’ inquiries concerning Sales Transactions; 

  

	 	3.1.7	Fund Sears’ Settlement Account, in accordance with Section 3.2 of this Merchant Agreement; 

 

	 	3.1.8	Manage change requests and problem reports from Sears in a timely manner; and 

 

	 	3.1.9	Comply with the service standards set forth in Schedule C hereto. 

 3.2 Payment of Settlement Amounts on Card Sales. 
  

	 	3.2.1	 Purchaser will pay the daily Settlement Amounts with respect to Card Sales via wire transfer to the Settlement Account in

  
 4 

	 	
accordance with the following time periods: Sears will submit the Sales Data and any relevant supporting documentation to Purchaser and its processor by 3:00 a.m. (Toronto time) each Business
Day, and, provided that Purchaser and its processor received such information by 3:00 a.m. (Toronto time), Purchaser will provide Sears with a report of the Settlement Amounts by 8:30 a.m. (Toronto time) on such Business Day, and shall fund the
Settlement Account by 12:00 p.m. (Toronto time) on such Business Day. 

 In the event Sears submits the Sales
Data and any relevant supporting documentation after the 3:00 a.m. (Toronto time) cut-off, or Purchaser and its processor received such information after the 3:00 a.m. (Toronto time) cut-off, such Sales Data will be included in the Settlement
Amounts for the next Business Day. The parties acknowledge and agree that, if all or a portion of the Settlement Amounts due are not paid to Sears by 12:00 p.m. (Toronto time), Purchaser will reimburse Sears for its cost of funds adjustment (the
“Cost of Funds Adjustment”) from the date such Settlement Amounts were due until and including the date such Settlement Amounts are paid in full. The Cost of Funds Adjustment shall be calculated using the formula set forth on
Schedule B. 
 In the event all or a portion of the required Sales Data is not received by Purchaser and its processor by 3:00
a.m. (Toronto time) on a Business Day, or such data is unreadable, Purchaser will not be required to process the Sales Data containing any missing or unreadable data, and shall immediately inform Sears of such missing or unreadable data. Sears will
be responsible for retrieving or resubmitting the Sales Data in completed form. Sears will be responsible for the loss, damage or destruction of Sales Data until such Sales Data is received by Purchaser and its processor. Sears agrees that it will
not close its Settlement Account without providing Purchaser at least two Business Days prior written notice of such closure and substitution of another account. The amounts paid will be the full amount indicated in the Settlement Amounts, as
reported, with no deduction, reduction, or setoff for any reason, except as expressly provided for herein. 
 All Settlement
Amounts shall be paid in Canadian currency, unless otherwise agreed. Sears authorizes Purchaser to initiate credit or debit entries and adjustments to the Settlement Account. 

  
 5 

 Sears agrees that, in the event of termination of this Merchant Agreement, it will
maintain the Settlement Account with reasonably sufficient funds until Sears and Purchaser agree that all Chargebacks and other adjustments are processed, and will permit Purchaser to credit and debit the Settlement Account until all such charges
are finalized. Chargebacks and other adjustments will be settled as provided in this Merchant Agreement. 
  

	 	3.2.2	Except as otherwise expressly provided in this Merchant Agreement, Purchaser will not offset other amounts owed by Sears from Settlement Amounts without Sears’
prior written consent in each case, and will instead bill Sears separately for all such fees or charges. 

 3.3
Chargeback Rights and Procedures for Card Sales 
  

	 	3.3.1	Subject to the Rules and the terms and conditions set forth in this Merchant Agreement, any payment made by Purchaser to Sears in connection with a Card Sale may be
charged back to Sears until the expiration of 120 days after the later of the Card Sale Date or the date on which the transaction is posted to the Card Account and/or Merchandise is received (including 120 days after termination of this Merchant
Agreement), except in cases of Chargebacks related to losses on credit limit overrides on protection agreements, extended warranty protection, maintenance agreements, or similar products under Section 3.1 of the Rules, which can be charged back
without limit as to time; provided that with respect to Chargebacks related to losses on credit limit overrides on protection agreements that Purchaser demonstrates to Sears’ reasonable satisfaction that (i) the original protection
agreement sale was in fact a credit limit override and (ii) that subsequent payments on the account have not paid such purchase off. The parties will work together in good faith to resolve Cardholder disputes presented after the 120 day
Chargeback period. 

  

	 	3.3.2	If Purchaser processes a Chargeback and the amount of the Card Sale or the disputed amount is subsequently paid by the Cardholder, Purchaser will promptly reimburse
Sears for such amount. 

 3.4 Cardholder Complaints. Purchaser will cooperate with Sears consistent with the
terms of the Program Agreement, including Article V thereof, in addressing Cardholder complaints that arise in connection with a Card Sale. 

  
 6 

 3.5 Electronic Data Transmissions and Equipment. Unless otherwise provided herein,
Purchaser will transmit, or cause to be transmitted, to Sears all data required under this Merchant Agreement via electronic transmission in mutually agreed upon formats. The parties may, from time to time, agree as to changes to any electronic
format(s) used in connection with the transactions contemplated by this Merchant Agreement. Purchaser, at its sole expense, will obtain and maintain equipment, including telephone lines, to transmit and accept information and data relating to Sales
Transactions from Sears. 
 3.6 Sears Co-Branded Cards. Subject to Section 2.1, Purchaser will comply with the Card
Association Regulations applicable to it in connection with the operation of all applicable aspects of the Program related to the Sears Co-Branded Cards, other than those applicable to Co-Branded Card Sale transactions, wherein Sears Co-Branded Card
transactions are to be processed as Sears Card transactions. 
 ARTICLE IV—SEARS OBLIGATIONS 

4.1 General Duties. Sears will comply with the terms of this Merchant Agreement, the Rules, and the Card Association Regulations,
as applicable, in connection with the acceptance of Sears Credit Cards and in submitting Sales Transactions and Sales Records for processing. Without limiting the generality of the foregoing, Sears will: (a) honor each valid Sears Credit Card
presented by Cardholders; (b) treat each Sales Transaction no less favorably than Sears treats other credit card transactions; (c) not establish minimum or maximum amounts for Card Sales, Sales Transactions or Sales Records; (d) not
impose any surcharge on Card Sales or Sales Transactions; and (e) include any Sales Tax on a Sales Transaction in the total charge amount. 
 During the term of this Merchant Agreement, Sears will, and will use commercially reasonable best efforts to cause its Designated Participants to maintain a merchant relationship with the Card Association
for the purpose of accepting Credit Cards for purchases of Merchandise; provided that with respect to each of Sears’ Designated Participants accepting Credit Cards for Purchase of Merchandise without maintaining a merchant relationship
with the Card Association (i.e. by clearing Credit Card transactions through Sears’ POS systems), Sears shall not be obliged to exert such efforts. 
 4.2 Use of Forms. Unless otherwise provided herein, Sears will use such forms of Card Sales, Sales Records and Refund Records as is determined by mutual agreement of the parties or as may be
modified from time to time to comply with applicable Law or Card Association Regulations. 
 4.3 Electronic Transmission
Requirements. Unless otherwise provided herein, Sears will transmit, or cause to be transmitted, all data required under this Merchant Agreement via electronic transmission in mutually agreed upon formats. 

  
 7 

 4.4 Equipment. Sears, at its sole expense, will obtain and maintain equipment
necessary to capture information and data relating to Sales Transactions. Purchaser shall consult with Sears before implementing system changes relating to the processing of Card Sales that would require Sears to incur expenses to its systems or
equipment to accommodate and shall promptly reimburse Sears in full for any and all such expenses. 
 4.5 Sears Co-Branded
Cards. Subject to Section 2.1, Sears will comply with the Card Association Regulations applicable to merchants in connection with the operation of all applicable aspects of the Program related to the Sears Co-Branded Cards, other than those
applicable to Co-Branded Card Sale transactions, wherein Sears Co-Branded Card transactions will not be subject to an interchange fee except in accordance with Section 7.3 of the Program Agreement, and are to be processed as Sears Card
transactions. 
 ARTICLE V—CONFIDENTIAL INFORMATION 

The parties agree that the terms and conditions with respect to Confidential Information as set forth in the Program Agreement will apply
to information disclosed to or observed or otherwise obtained by one party with regard to the other party in the course of the negotiation of this Merchant Agreement and each party’s performance of its obligations hereunder. 

ARTICLE VI—SEARS REPRESENTATIONS AND WARRANTIES 
 6.1 Generally. Sears hereby warrants and represents, as of the date of presentment of the charge transactions to Purchaser of each Sales Record for a Card Sale: 

 

	 	6.1.1	All Sales Records and Refund Records that Sears presents to Purchaser are genuine and arise out of bona fide Card Sales of Merchandise by Sears in the ordinary course
of business, and have not been included in any previously submitted Sales Data and do not involve a cash advance or Merchandise not listed on the Sales Record; 

 

	 	6.1.2	Sears has title to all Sales Records presented to Purchaser, there are no liens or other encumbrances on such Sales Records and Sears has the authority to present such
Sales Records to Purchaser; 

  

	 	6.1.3	No Sales Record is subject to any dispute, set-off, counterclaim or defense due to any act or omission of Sears, except for those created as a result of the acts or
omissions of Purchaser; 

  

	 	6.1.4	The Card Sale did not arise out of any fraud or malfeasance of any employee or agent of Sears; 

 

	 	6.1.5	The Sales Record is signed (or if an internet transaction, verified) with a signature not manifestly different than the signature on the applicable Sears Credit Card,
islegible and accurately reflects the underlying transaction in all material respects; and 

  
 8 

	 	6.1.6	Sears has not taken or granted, and does not purport to take or grant, any security interest in any Sales Record. 

6.2 Notwithstanding any contrary provision in this Merchant Agreement, Purchaser’s sole remedy for a breach by Sears of any
of the foregoing representations and warranties will be to charge back the Card Sale to Sears in accordance with the terms and conditions hereunder. Nothing in this Section 6.2 shall limit Purchaser’s rights to indemnification under
Article XI of the Program Agreement. 
 ARTICLE VII—USE OF TRADEMARKS 

The parties agree that the terms and conditions with respect to the use of the Sears Licensed Marks and the Licensed Purchaser Marks set
forth in the Program Agreement and the Licensing Agreement will apply to the use of such Marks for purposes of this Merchant Agreement. 
 ARTICLE VIII—RECORDS 
 8.1 Generally. Sears will retain
electronic records of all Sales Records and Refund Records (and a copy of any other transaction record) for at least two years after the date when Sears presents the records to Purchaser. If Sears cannot retain electronic records of all or a portion
of any such records, then Sears will retain either the original, or a legible microfilm copy of both sides, of all Sales Records and Refund Records (and any other transaction records) for at least seven years after the date when Sears presents the
records to Purchaser. 
 8.2 Requests for Copies. Sears will promptly provide Purchaser upon Purchaser’s request
with copies of the electronic records of all Sales Records or Refund Records (and any other transaction records), or, if there is no electronic record, a copy of either the original paper or of the microfilmed version of such Sales Records or Refund
Records (and any other transaction records) (in size comparable to the original paper record), and any other documentary evidence available to Sears and reasonably requested by Purchaser to meet its obligations under applicable Laws or to respond to
questions concerning Accounts. 
 ARTICLE IX—COMPLIANCE WITH LAW 

9.1 Sears’ Compliance. Sears will comply in all material respects with all Laws applicable to Sears and Sears’ business
as they relate to Sales Transactions. 
 9.2 Purchaser’s Compliance. Purchaser will comply in all material respects
with all Laws applicable to Purchaser and Purchaser’s business as they relate to Sales Transactions. 

  
 9 

 ARTICLE X—DEFENSE AND INDEMNIFICATION 

10.1 By Sears. Sears shall be liable to, and shall defend, indemnify and hold harmless, Purchaser and its Subsidiaries and
Affiliates and their respective directors, officers, employees and permitted assigns from and against any Losses arising out of any breach of an obligation to be performed by Sears herein. 

10.2 By Purchaser. Purchaser shall be liable to, and shall defend, indemnify and hold harmless, Sears, and its Subsidiaries and
Affiliates and their respective directors, officers, employees and permitted assigns from and against any Losses arising out of any breach of an obligation to be performed by Purchaser herein. 

10.3 Procedures for Indemnification. The parties agree to follow the procedures for indemnification set forth in Section 11.3
of the Program Agreement for purposes of indemnification under this Merchant Agreement. 
 ARTICLE XI—TERM AND
TERMINATION 
 11.1 Term. This Merchant Agreement shall commence on the Effective Date, and shall continue in full
force and effect during the Term of the Program Agreement. 
 11.2 Effect of Termination. Upon the effective date of any
termination of this Merchant Agreement, Sears’ rights hereunder to make Card Sales, to present Sales Records to Purchaser, and to use Sales Record forms, Refund Record forms, promotional materials, and any other items provided by Purchaser
hereunder, will immediately cease. The provisions of Sections 3.2, 3.3, 3.4, 4.2, 4.3, and Articles V, VI, VII, VIII, IX, X, and XII, as well as Sears’ obligations in connection with any Sales Record or Refund Record accepted by Purchaser
(whether before or after any termination of this Merchant Agreement), including Sears’ Chargeback obligations, will survive any termination of this Merchant Agreement. 
 ARTICLE XII—GENERAL 
 12.1 Successors and Assigns.
Section 14.1 of the Program Agreement is incorporated herein, mutatis mutandis. 
 12.2 Entire Agreement.
Section 14.2 of the Program Agreement is incorporated herein, mutatis mutandis. 
 12.3 Relationship of the
Parties. Section 14.3 of the Program Agreement is incorporated herein, mutatis mutandis. 
 12.4 Force
Majeure. Section 14.4 of the Program Agreement is incorporated herein, mutatis mutandis. 
 12.5 Books and
Records. Section 14.5 of the Program Agreement is incorporated herein, mutatis mutandis. 

  
 10 

 12.6 Public Announcements. Section 14.6 of the Program Agreement is incorporated
herein, mutatis mutandis. 
 12.7 Audits. Section 14.7 of the Program Agreement is incorporated herein,
mutatis mutandis. 
 12.8 Change in Law; Severability. Section 14.8 of the Program Agreement is incorporated
herein, mutatis mutandis. 
 12.9 Assignment; Delegation of Services. Section 14.9 of the Program Agreement
is incorporated herein, mutatis mutandis. 
 12.10 Expenses. Section 14.10 of the Program Agreement is
incorporated herein, mutatis mutandis. 
 12.11 Amendment and Waiver. Section 14.11 of the Program Agreement
is incorporated herein, mutatis mutandis. 
 12.12 Remedies; Specific Performance. Section 14.12 of the
Program Agreement is incorporated herein, mutatis mutandis. 
 12.13 Table of Contents; Headings.
Section 14.13 of the Program Agreement is incorporated herein, mutatis mutandis. 
 12.14 Limitation on Rights of
Others. Section 14.14 of the Program Agreement is incorporated herein, mutatis mutandis. 
 12.15
Counterparts; Effectiveness. Section 14.15 of the Program Agreement is incorporated herein, mutatis mutandis. 

12.16 Payments. Section 14.16 of the Program Agreement is incorporated herein, mutatis mutandis. 

12.17 Drafting. Each party acknowledges that its legal counsel participated in the drafting of this Merchant Agreement. The
parties hereby agree that the rule of construction that ambiguities are to be resolved against the drafting party shall not be employed in the interpretation of this Merchant Agreement to favor one party over any other. 

12.18 Governing Law. This Merchant Agreement shall in all respects be governed by and construed in accordance with the laws of the
province of Ontario and the laws of Canada applicable therein. 
 12.19 Jurisdiction; Consent to Service of Process.
Section 14.20 of the Program Agreement is incorporated herein, mutatis mutandis. 
 12.20 Notices.
Section 14.21 of the Program Agreement is incorporated herein, mutatis mutandis. 

  
 11 

 12.21 Escalation. Section 14.22 of the Program Agreement are incorporated
herein, mutatis mutandis. 
 12.22 Designated Participants. Each of Sears and Purchaser shall use its commercially
reasonable efforts to have Purchaser enter into separate merchant processing agreements with each of Sears’ Affiliates and Partner Merchants that accept Sears Credit Cards (“Designated Participants”), in accordance with
Section 12.2 of the Program Agreement. Until Purchaser enters into such merchant processing agreement with any such Designated Participant, (i) Sears shall communicate with Purchaser on behalf of the Designated Participant on all matters,
(ii) Purchaser shall not be required to render any performance hereunder to the Designated Participant, and Purchaser shall have fulfilled all of its obligations and responsibilities hereunder with respect to any participation by the Designated
Participant by rendering performance to Sears on behalf of the Designated Participant, (iii) Sears shall be responsible for rendering to Designated Participant any performance rendered to Sears by Purchaser on behalf of the Designated
Participant, and (iv) nothing in this Merchant Agreement, whether express or implied, shall give or be construed to give any such Designated Participant any legal or equitable right, remedy or claim under or in respect of this Merchant
Agreement, it being understood that any legal or equitable right, remedy or claim with respect to matters set forth in this Section 12.22 shall inure exclusively to the benefit of Sears. 

12.23 Modification of Rules. Purchaser and Sears may modify the Rules upon mutual agreement. 

12.24 Conflict with Program Agreement. Notwithstanding anything to the contrary contained herein, in the event of a conflict
between either this Merchant Agreement or the Rules and the Program Agreement, the Program Agreement shall control. 

Signature Page Follows 

  
 12 

 IN WITNESS WHEREOF, Sears and Purchaser have caused their duly authorized
representatives to execute this Merchant Agreement as of the date set forth below the signature of each. 
  

					
	SEARS CANADA INC.
		
	By:	 	 
		 	Name:	 	David B. Merkley
		 	Title:	 	 Senior Vice-President and

Chief Financial Officer

  

					
		
	By:	 	 
		 	Name:	 	Rudolph R. Vezér
		 	Title:	 	 Senior Vice-President and

Chief Legal Officer

  

					
	 JPMORGAN CHASE BANK, N.A.
 (TORONTO BRANCH)

		
	By:	 	 
		 	Name:	 	
		 	Title:	 	

  
 13 

 SCHEDULE A 
 Sears Credit Card Merchant 
 Operating 

Rules and Regulations 
 These Rules and Regulations contain procedures that will be followed in 

connection with the acceptance of a Sears Credit Card and will govern 

all Sears Credit Card Sales Transactions. These Rules and 
 Regulations are not applicable to Sears Co-Branded Cards except for Sears Co-Branded 
 Card Sales. 

 SCHEDULE A 
 Sears Credit Card Merchant 
 Operating 

Rules and Regulations 
 Table of Contents 
  

									
	1.	 	SALES TRANSACTIONS	  	 	1	  
		 	1.1	  	Obtaining Authorization	  	 	1	  
		 	1.2	  	Refunds	  	 	2	  
		 	1.3	  	Cash Advances	  	 	3	  
		 	1.4	  	Surcharges	  	 	3	  
		 	1.5	  	Split Tickets	  	 	3	  
		 	1.6	  	Minimum/Maximum Dollar Limits	  	 	3	  
		 	1.7	  	Suspicious Situations	  	 	3	  
		 	1.8	  	Applications	  	 	4	  
			
	2.	 	PROCESSING AND SETTLEMENT	  	 	6	  
		 	2.1	  	Processing and Settlement for Sales Transactions	  	 	6	  
		 	2.2	  	Recording A Credit Card Sale (Card Present)	  	 	6	  
		 	2.3	  	Recording a Card Sale (Card Not Present)	  	 	7	  
		 	2.4	  	Submitting Electronic Sales Data	  	 	8	  
		 	2.5	  	Settlement Downtime Procedures	  	 	8	  
			
	3.	 	CHARGEBACKS	  	 	9	  
		 	3.1	  	General	  	 	9	  
		 	3.2	  	Notice	  	 	9	  
		 	3.3	  	Representment	  	 	9	  
		 	3.5	  	Collection of Chargebacks	  	 	10	  
			
	4.	 	SEARS EMPLOYEE FRAUD	  	 	10	  
			
	5.	 	ALTERED AND COUNTERFEIT SEARS CREDIT CARDS	  	 	10	  
			
	6.	 	SPECIAL CREDIT CARD PROGRAMS	  	 	11	  
			
	7.	 	CAPITALIZED TERMS	  	 	11	  

	1.	Sales Transactions 

  

	 	1.1	Obtaining Authorization 

  

	 	1.1.1	The general rules for Authorizations are as follows: 

  

	 	•	 	 before completing a Card Sale, Sears will obtain Authorization for the amount of the Card Sale in a manner set forth herein, including through
electronic processing methods and terminals; 

  

	 	•	 	 Sears will request Authorization before submitting a Card Sale for payment, except as otherwise mutually agreed for specific types of Sales
Transactions; 

  

	 	•	 	 if Authorization is granted, Sears will provide an Authorization code on the Sales Record submitted by Sears for processing; and

  

	 	•	 	 if Authorization is denied, Sears may make further attempts to obtain Authorization with that Sears Credit Card in order to complete a Card Sale.

  

	 	1.1.2	Telephone, Internet or Mail Order Credit Card Sales 

 Sears will obtain prior Authorization for all telephone, Internet and mail order Card Sales. For telephone, Internet, or mail order Authorization requests, Sears will electronically transmit the Account
number, expiration date (if any), and amount of the Sales Transaction. Sears shall present Authorization requests in batch or real-time, and in no event shall Sears present Authorization requests less often than daily. Sears will follow such
additional procedures relating to Authorization requests for telephone, Internet and mail order Card Sales as mutually agreed from time to time, it being understood that current procedure is to require the presentment of the Sears Card and request
customer signature prior to receipt of Merchandise. 
  

	 	1.1.3	Authorization Downtime Procedures 

  

	 	1.1.3.1	Telephone, Internet or Mail Order Credit Card Sales 

 If the Electronic Card Capture Device is not working, Sears will queue Authorization requests and retry them as soon as the Authorization system is functional, but need not obtain Authorization for any
Card Sale equal to or less than $100.00. 
  

	 	1.1.3.2	All Other Credit Card Sales 

  
 A-1

 If the Electronic Card Capture Device is not working, Sears will call Purchaser’s
Authorization Center at 1-800-686-8224 for Authorization on each sale. If a sale is approved, Sears will re-enter the sale in the Electronic Card Capture Device together with the Authorization Code as soon as the Electronic Card
Capture Device is functional. 
  

	 	1.2	Refunds 

  

	 	1.2.1	If a Cardholder desires to return Merchandise or cancel the Services paid for with a Sears Credit Card, Sears will, in accordance with Sears’ return policy,
process a Refund to that Cardholders’ Sears Credit Card. Sears will not give cash refunds to any Cardholder in connection with a Card Sale except to the extent that a refund can not readily be processed to the Sears Credit Card which paid for
such Merchandise or Services. 

 Purchaser will honor Sears’ return, policy as long as the policy complies
with all applicable Laws and Sears clearly posts or otherwise notifies the Cardholder of the policy at the time of each Card Sale. Returns of Merchandise or cancellation of Services not paid for by a Sears Credit Card will not be credited to the
Sears Credit Card, except for the applicable portion of a purchase pursuant to Section 1.5. (it being understood that any portion of a purchase paid for by more than one Sears Credit Card may be refunded to one or more of such Sears Credit
Cards in Sears’ discretion). Sales Data from Refunds will be included in Sears’ daily file submitted to Purchaser for purposes of settlement. 
  

	 	1.2.2	Sears’ Return Policy 

Sears’ return policy for Merchandise paid for through use of a Sears Credit Card shall be no less favorable than Sears’ return
policy for Merchandise paid for through all other means. 
  

	 	1.2.3	Refund Record 

 Sears
will deliver to Purchaser a Refund Record for each Refund or adjustment made to a Sears Credit Card Account within five (5) days after such Refund or adjustment is made, and will deliver to the Cardholder a copy of the Refund Record at the time
the Refund or adjustment is made. 
 Each Refund Record will include the Account number, Refund date, Refund amount, a brief
description of the Refund or adjustment, in sufficient detail to identify the Sears Credit Card used and the Card Sale refunded. 

  
 A-2

	 	1.3	Cash Advances 

 Sears will
not issue a cash advance on any Sears Credit Card, unless otherwise agreed upon by the parties in writing. 
  

	 	1.4	Surcharges 

 Other than as
required by applicable Laws, Sears will not impose any surcharge, levy, or fee of any kind for the use of a Sears Credit Card by the Cardholder, unless otherwise agreed upon by the parties in writing. 

 

	 	1.5	Split Tickets 

 Sears may
allow a Cardholder to use the Sears Credit Card to pay for a portion of any Merchandise. 
  

	 	1.6	Minimum/Maximum Dollar Limits 

 Sears will not require that any Cardholder make a minimum purchase in order to use a Sears Credit Card. Other than as set forth in the Credit Policy, Sears will not set a maximum limit on purchases for a
Cardholder using a Sears Credit Card. 
  

	 	1.7	Suspicious Situations 

Any Sears employee who is suspicious of the validity of a Sears Credit Card or of the presenter of a Sears Credit Card for any reason
should notify Purchaser immediately, in accordance with the following procedure and subject to applicable Law: 
  

	 	1.	The employee will call Purchaser’s Authorization Center at 1-800-686-8224; 

 

	 	2.	The employee will next ask the Account manager for a Code 10 Authorization; 

 

	 	3.	The Authorization Center associate will request the Cardholder’s Account number and name, and will immediately alert the fraud department;

  

	 	4.	The fraud department will then ask a brief series of yes or no questions about the Sears Credit Card or the presenter; 

 

	 	5.	If the fraud department is able to confirm the identity of the presenter as a Cardholder or authorized user of the Sears Credit Card, Purchaser will approve the Card
Sale and record its approval in the Cardholder’s Account records, and will not charge back such purchase to Sears as unauthorized even if the Cardholder files a written dispute of the transaction as such; and 

  
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	 	6.	If the Sears employee is instructed to retain the Card, or not to authorize the sale, such employee will only do so by reasonable, lawful means.

  

	 	1.8	Applications 

  

	 	1.8.1	Applications at Point-of-Sale 

Applications for Sears Credit Cards completed at Sears’ retail stores, whether with or without an accompanying sale, and forwarded
to Purchaser via telephone or by electronic transmission, inclusive of telephone, terminal or point-of-sale system devices, will be transmitted to Purchaser in a mutually acceptable manner and format. Sears shall be responsible for the following:

  

	 	•	 	 Providing all information required on the application form furnished by Purchaser, and developed consistent with the Program Agreement, for use in
Sears’ retail stores. 

  

	 	•	 	 Obtaining and verifying one form of identification to verify the applicant’s identity, one of which must consist of a current, official government
identification document, such as a passport or driver’s license, that bears the applicant’s signature. 

  

	 	•	 	 Obtaining the signature on the Application of all persons whose names will appear on the Account or who will be responsible for the Account.

  

	 	•	 	 Upon either approval or decline, sending the Application, including the information contained in those Applications received by telephone, to Purchaser
at the designated address within five (5) days. 

  

	 	•	 	 Entering the sale into the Electronic Card Capture Device. If requested to do so by Purchaser’s representative, Sears’ employee shall also
enter into the Electronic Card Capture Device the Authorization Code provided by Purchaser to Sears. 

  

	 	•	 	 Providing to each applicant a copy of the initial disclosures Purchaser provides to Sears expressly for distribution to applicants.

  
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 If approved, Purchaser’s representative will provide the Account number and credit
limit to Sears’ employee or representative. In order to obtain Authorization for the Card Sale, Sears’ employee or representative must enter the Account number and total amount of the Card Sale into the Electronic Card Capture Device.

 If Purchaser declines an application, Purchaser will provide Sears’ employee or representative with an adverse action
reference number that Sears’ employee or representative will provide to the applicant and Purchaser will send an adverse action letter to the applicant via mail. 
 If Purchaser is unable to render an immediate decision, Purchaser will provide the Sears’ employee or representative with an application pending number, and the Sears employee or representative will
instruct the applicant to call Purchaser at 1-800-686-8224 for a final approve or decline decision. 
 If the application
is approved, but the total amount of the Card Sale exceeds the line of credit offered to the applicant, Purchaser’s associate will communicate to the applicant a counteroffer for a lower line of credit or another Sears Credit Card. If the
applicant declines the counteroffer, Sears’ employee or representative must treat the application as if Purchaser declined the application, and at such point Sears shall have the right to offer the applicant another source of credit pursuant to
Section 4.5(c) of the Program Agreement. 
  

	 	1.8.2	Telephone Applications 

Applications for the Credit Card received by Sears by telephone, whether with or without an accompanying sale, will be processed by Sears
and forwarded electronically to Purchaser in a mutually acceptable manner and format. Such applications will be immediately available for Card Sales only if the Cardholder received the required initial disclosures. If the consumer applies for an
Account by telephone and did not receive the initial disclosures, Purchaser will put a tiered watch or block on the Account until a plastic card with disclosures is received by the customer, and the Sears’ employee or representative may not
process the Card Sale on the Account until the Cardholder activates the card or uses the card in the Store. 
  

	 	1.8.3	Internet Applications 

Customers of Sears who wish to apply for a Sears Credit Card may do so via Sears’ Internet website. All applications received by

  
 A-5

 
Purchaser via the Internet will be processed only if all of the information requested on the website application form has been completed. For Internet applications, the Purchaser Card Agreement
shall be transmitted to the consumer by Purchaser through the website. If approved, Accounts opened via the Internet application process are immediately available for Card Sales. 

 

	2.	Processing and Settlement 

Unless otherwise agreed upon by the parties, all processing and settlement for Sales Transactions will be accomplished via Processor.

  

	 	2.1	Processing and Settlement for Sales Transactions 

  

	 	2.1.1	General Rules for Processing and Settlement 

 Sears will submit Card Sales to Purchaser only if, to Sears’ knowledge, the Card Sale is made or approved by the Cardholder, or another person who is authorized to use, the Sears Credit Card used for
the Card Sale. Sears will only submit a Credit Card Sale once it has complied with all applicable procedures set forth in these Rules and has provided the Merchandise (postage prepaid, if applicable) to the Cardholder (unless otherwise expressly
agreed upon by the Cardholder). 
 Purchaser will provide a settlement report and/or file in a mutually agreeable form and
format upon Sears’ request. 
  

	 	2.2	Recording A Credit Card Sale (Card Present) 

  

	 	2.2.1	Completing a Card Sale record 

Sears will record each Card Sale by completing a Sales Record in accordance with mutually agreed upon procedures. Sears will maintain
records such as sales drafts, sales slips or electronic processing records and methods, as mutually agreed. 
  

	 	2.2.2	Obtaining the Cardholders’ Signature 

 Sears will require Cardholders to sign Sales Records of Card Sales, but not until the final Sales Transaction amount is entered on the Sales Record. If the signature panel on the Sears Credit Card is
blank, in addition to requesting an Authorization, Sears will: 
  

	 	•	 	 review identification to determine that the customer is the Cardholder. The identification must consist of a current, official government
identification document, such as a passport or driver’s license, that bears the Cardholder’s signature; and 

  
 A-6

	 	•	 	 require the Cardholder to sign the signature panel of the Sears Credit Card before completing the Card Sale with such Cardholder’s name, or the
words “See ID for signature.” 

  

	 	2.2.3	Delivering Sales Records to the Cardholder 

 Sears will deliver to the Cardholder an accurate and complete copy of the Sales Record no later than the time the Merchandise is provided, using a format mutually agreed upon by Sears and Purchaser. Sears
will provide at least the following information to the Cardholder: 
  

	 	•	 	 Sears Credit Card Account number truncated to the extent required by law; 

 

	 	•	 	 Cardholder name; 

  

	 	•	 	 Location code or city and state; 

  

	 	•	 	 Card Sale amount; 

  

	 	•	 	 Card Sale Date; and 

  

	 	•	 	 Brief description of Merchandise sold. 

  

	 	2.3	Recording a Card Sale (Card Not Present) 

  

	 	2.3.1	Purchases made at Stores 

If a Cardholder wants to make a purchase at a Store and does not have his/her Sears Credit Card, Sears will: 

•    review identification to determine that the customer is the Cardholder. The identification must consist of
a current, official government identification document, such as a passport or driver’s license, that bears the Cardholder’s signature; and 
 •    perform an Account look-up to obtain a temporary shopping pass for the Cardholder; provided that, if such look-up is unsuccessful, Sears may obtain telephonic authorization
from Purchaser, which authorization, if given, shall be recorded on Cardholder’s Account record by Purchaser. 
 No
purchase consummated in accordance with the foregoing procedures shall be charged back as unauthorized except, with respect to the last bullet point of this Section 2.3.1 only, to the extent resulting from a Sears employee’s fraud.

  
 A-7

	 	2.3.2	Purchases made by telephone, Internet or mail order 

 Sears will obtain the Cardholder’s billing and ship to addresses information in addition to that set forth in Section 2.2.3 above from the Cardholder in connection with a telephone, Internet or
mail order Card Sale. 
  

	 	2.4	Submitting Electronic Sales Data 

  

	 	2.4.1	General Rules: 

 Sears will
submit all Card Sales to Purchaser within five days of the Card Sale Date unless otherwise agreed. If Sears obtains re-Authorization for the Card Sale and submits the Card Sale within five days of the re-Authorization, it shall be deemed to have
complied with this section 2.4.1. Purchaser will accept a Card Sale without re-Authorization within ten days of the Card Sale, unless Purchaser shows a negative change in Cardholder status during the latter five days. 

All monetary amounts included in Sales Data will be presented in Canadian dollars. 

 

	 	2.4.2	Cardholder Verification 

 Sears
will not complete a Card Sale before the “Valid From” date or after the expiration date of a Sears Credit Card, where applicable. 
 Sears will complete a Card Sale only if the signature on the sales draft or Sales Record is the same as the signature appearing on the Sears Credit Card (which signature may, but need not be, the name
embossed or printed on the Sears Credit Card). If identification is uncertain or if Sears otherwise questions the validity of the Sears Credit Card, it will promptly contact Purchaser for Authorization and other instructions. 

 

	 	2.5	Settlement Downtime Procedures 

 If the Electronic Card Capture Device is not working, Sears will retain and continue to retry transmission when the Electronic Card Capture Device is functional. 

In the event of a Processor or system failure, Purchaser reserves the right to reject Sales Transactions submitted more than five days
from the date the system becomes operational. In the event of a Sears’ system failure, Purchaser reserves the right to reject Sales Transactions submitted more than ten days from the Card Sale Date. 

  
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 If Sears surpasses the timeframes listed, it must obtain re-authorization of the Sales
Transaction before the Sales Transaction can be submitted for settlement. 
  

	3.	Chargebacks 

 Purchaser
may charge back to Sears, and Sears will pay back Purchaser, the amount of each Card Sale which Sears submits to Purchaser that is charged back pursuant to the terms in this Section 3. 

 

	 	3.1	General 

 Purchaser may
charge back a Card Sale to Sears (i) if a billing error is asserted by a Cardholder with respect to a Card Sale or if a Cardholder disputes the delivery, quality or performance of the Merchandise, and Sears has not resolved such billing error
or dispute within thirty (30) days of receipt of notice thereof and the Purchaser has made a reasonable independent determination that Cardholder’s position is credible; (ii) as contemplated in Attachment A hereto; or (iii) in
cases of losses on amounts attributable to credit limit overrides on protection agreements, extended warranty protection, maintenance agreements, or similar products. Notwithstanding anything else in these Rules, Purchaser shall not initiate a
Chargeback under clauses (i) or (ii) of the preceding sentence unless a Cardholder has initiated a dispute regarding the Card Sale. No Chargeback on any Card Sale shall be for an amount exceeding Purchaser’s actual losses on that Card
Sale. 
 Purchaser may correspond on behalf of the Cardholder for submission of dispute summaries or Chargeback notifications.
Sears will furnish Purchaser with copies of Card Sales and related information within thirty (30) days of Purchaser’s request. 
 Notwithstanding the foregoing, to the extent that the Card Association Regulations require an immediate chargeback (e.g. for duplicated transactions), the Card Association Regulations shall apply.

  

	 	3.2	Notice 

 Purchaser will
give Sears five days’ prior notice of any Chargebacks and will notify Sears in accordance with Section 3.1 of the Rules with respect to any billing error asserted by a Cardholder or any Cardholder dispute with respect to the delivery,
quality or performance of Merchandise. 
  

	 	3.3	Representment 

 If Sears
elects to rebut a Chargeback, Sears will submit its rebuttal to Purchaser within 30 days after receiving notice of the Chargeback. Purchaser’s obligation to Sears for a Chargeback is limited to

  
 A-9

 
representment procedures. Purchaser will review all relevant facts and circumstances pertaining to Sears and the Cardholder and determine if Purchaser should reverse the Chargeback. If Purchaser
determines that it should reverse the Chargeback, Purchaser will issue a separate credit to Sears and debit the Cardholder. Sears must not submit a new Card Sale transaction in an identical amount in order to recover from a Cardholder for a
transaction for which Purchaser has issued a Chargeback. 
 Sears may request a reversal of a Chargeback by submitting to
Purchaser a copy of the original Sales Record and any other documentation to support the request for reversal of the Chargeback 

If Purchaser refuses to reverse the Chargeback, the parties may bring the matter to the Program Committee, which shall resolve the
Chargeback dispute. Sears acknowledges that Purchaser will not engage in direct collection efforts against Cardholders on Sears’ behalf. 
 Notwithstanding the foregoing, Purchaser may make case-by-case policy adjustments for the purpose of customer retention. 
  

	 	3.4	Chargeback Codes 

Purchaser and Sears shall utilize Attachment A hereto for the purpose of facilitating the processing of Chargebacks and Chargeback
reversals. 
  

	 	3.5	Collection of Chargebacks 

If a Card Sale results in a Chargeback paid by Sears, Sears may collect the amount charged back from the Cardholder as permitted by law.

  

	4.	Sears Employee Fraud 

Purchaser and Sears will work together to minimize possible fraud by Sears employees. Sears’ employees will not issue or accept
temporary credit cards, other than temporary shopping passes as permitted hereunder. Subject to applicable Law, if Sears suspects that one of its employees is involved with or may be involved with fraud relating to a Sears Credit Card, Sears will
notify Purchaser within 48 hours of its discovery of the possible fraud and provide Purchaser the reasons why Sears suspects the employee and any documentation Sears has relating to the possible fraud, and Sears will conduct the fraud investigation
and report to Purchaser the results of such investigation. 
  

	5.	Altered and Counterfeit Sears Credit Cards 

 Sears’ employees and representatives should be familiar with the appearance of a valid Sears Credit Card and the validity of Sears Credit Card Account numbers as issued by Purchaser and will check
each Sears Credit Card and Sears Credit Card Account number presented for signs of counterfeiting or alterations. Sears’ 

  
 A-10

 
employees and representatives should exercise reasonable care in checking each Sears Credit Card and Sears Credit Card Account number. Notwithstanding the foregoing, transactions authorized on
counterfeit or altered cards at POS through electronic processing methods shall not be charged back to Sears. 
  

	6.	Special Credit Card Programs 

 Sears will provide Cardholders who make purchases under a Special Credit Card Program with the disclosures approved by the Program Committee in compliance with applicable Law. 

 

	7.	Capitalized Terms 

Capitalized terms used herein and not otherwise defined will have the meanings given to them in the Merchant Agreement or the Program
Agreement. If there are any conflicts between the terms of the Merchant Agreement and these Rules, the Merchant Agreement shall govern. 

  
 A-11

 ATTACHMENT A 
 This Attachment A summarizes the Chargeback codes, definitions and explanations, and lists the supporting documentation relating to Chargebacks and Chargeback reversals. 

 

	 	•	 	 Where material changes are made to Authorization policies by Purchaser, Sears reserves the right to renegotiate chargeback or representment rights and
to the extent that the parties are unable to agree as to new terms and conditions regarding chargeback or representment rights, the Management Committee shall make the final determination. 

 

	 	•	 	 All transactions under $25.00 will not be subjected to a Chargeback. This $25.00 threshold may be reconsidered by the Program Committee based on
one-year historical Chargeback amounts for transactions under $25.00. 

  

	 	•	 	 Notwithstanding anything else in this Attachment or these Rules, all Chargebacks may be reversed if supporting documentation is missing, if Sears
provides proof that the Chargeback was invalid, or if an invalid reason code was used. 

  

	 	•	 	 Subject to the terms of the Program Agreement, Purchaser shall assume any Chargeback rights integrated into Sears’ written operating policies as
of the Effective Date and not explicitly referenced in this Attachment A. 

  

							
	 Definition
	  	 Explanation
	  	 Support Chargeback
	  	 Reverse Chargeback

	Transaction without Required Authorization	  	A valid Authorization was not obtained.	  	Authorization Report for Sales Data and Cardholder billing statement.	  	 -within downtime floor limits set forth in Section 1.1.3 of the Rules, or
 -proof of authorized transaction partial/ full

				
	Declined Authorization	  	The Card Sale was completed after Sears received a decline.	  	Authorization Report showing Decline and Cardholder billing statement.	  	 -Sales Ticket, or
  

-proof of authorized transaction partial/ full

				
	Invalid Cardholder Account Number	  	The Card Sale was submitted using an Account number for which no valid Account exists or can be located.	  	Reject-Re-entry Report or Purged Account Report.	  	 -Provide proof of imprint or swiped card information, or
 -proof of authorized transaction partial/ full

				
	Late Presentation of Transaction	  	The Card Sale was presented after the five-day limit, and as provided in Section 2.4.1 or the Rules. In the event the Sears’ employees or representatives accept payments at
Sears’ retail locations and such payment is returned to Sears for insufficient funds, Sears must present Purchaser with the insufficient funds item within fourteen days of Sears’ receipt of the item.	  	Sales Record and Cardholder billing statement with proof of a negative change in the Cardholder status at the time of Chargeback.	  	-Provide proof that negative change in the Cardholder status is false or occurred prior to the additional five day period.

  
 A-12

							
	 Definition
	  	 Explanation
	  	 Support Chargeback
	  	 Reverse Chargeback

	Cardholder Disputes Merchandise	  	The Cardholder disputes the delivery, quality or performance of Merchandise and Sears has not resolved such dispute within the timeframe specified in Section 3.1 of the Rules, and
Cardholder claims to have made a good faith attempt to resolve with Sears.	  	Completed written dispute form from Purchaser stating the claim by the Cardholder.	  	Resolution of dispute by Sears within the timeframe specified in Section 3.1 of the Rules, provide proof that a partial/full credit has been posted to the Account, or prove that
written dispute is invalid.
				
	Transaction Amount Differs	  	The Cardholder claims that the purchase amount for which the Cardholder signed was altered after the Cardholder signed the Sales Record and without the Cardholder’s consent or
direction, with the exception of travel and entertainment transactions. Only the difference will be charged back to Sears.	  	Cardholder’s Receipt does not match copy of Sales Record received from Sears or the Purchaser’s Transaction Report.	  	 - POS Transaction Log proving Cardholder altered the amount, or
 - Merchant Policy at Travel & Entertainment (T&E) vendors

				
	Duplicate Processing	  	Cardholder claims they have been charged twice for a Card Sale.	  	Cardholder billing statement(s).	  	Production of two Sales Records with different authorization codes or POS Transaction Log or proof that a credit/refund was granted.
				
	Non-Receipt of Refund or cancellation of services/ merchandise	  	Cardholder claims that a Refund issued by Sears has never been posted to the Cardholder’s Account or Cardholder received a cash refund in connection with a Card Sale. The
Chargeback is limited to the amount of the Refund.	  	Cardholder’s Refund Record and Refund was not posted to Cardholder’s Account, and Cardholder billing statement.	  	 -Proof that a credit/refund was granted, or
 -Provide Store rebuttal if service / merchandise is not accepted for credit per the refund/return/cancellation policy

				
	Unauthorized Purchase	  	The Cardholder claims that neither the Cardholder nor any party authorized by the Cardholder participated in the Card Sale and that the Cardholder has no knowledge of the Card
Sale.	  	Completed written dispute form from Purchaser stating the claim by the Cardholder, and copy of Sales Record and authorization log consistent with Sears’ current practices.
Additional investigation may also be necessary.	  	Proof that the Sears Credit Card was present at the time of the transaction and (i) a valid Authorization and (ii) consent of Cardholder or Cardholder’s authorized
representative were obtained.

  
 A-13

							
	 Definition
	  	 Explanation
	  	 Support Chargeback
	  	 Reverse Chargeback

		  		  		  	For Mail Orders/Telephone Orders (MOTO): proof that Cardholder received merchandise (or signed receipt of delivery by Cardholder or person to whom shipment was sent in accordance
with Cardholder’s instructions).
				
	Non-Receipt of Merchandise	  	Sears submitted a Card Sale in which the Merchandise was not yet shipped or otherwise provided to the Cardholder or the Cardholder claims they have not received the Merchandise for
which they have been charged.	  	Completed written dispute form from Purchaser stating the claim by the Cardholder	  	Shipping Invoice Delivery Ticket signed by Cardholder or Cardholder representative.
				
	Non-Receipt of Requested Document	  	Sales Record or Refund Record has not been provided within 30 days.	  	Request made to Sears and Sales Record or Refund Record is not received within specified time.	  	Provide proof that documentation was sent within the same 30-day period.
				
	Invalid Credit Plan	  	Sears charged a sale to an invalid credit plan or misrepresented the type of the credit plan to the Cardholder and the Cardholder claims he/she was told the plan was either valid or
for a longer period of time.	  	 Monetary
 file/Authorization
Report reveals an invalid credit plan number; completed written dispute form from Purchaser stating the claim by the Cardholder.
	  	Proof the sale made under correct credit plan. If not, Chargeback amount limited to difference between amount charged and amount that should have been charged.
				
	Failure to give initial disclosure or other forms required by Program Committee	  	The Cardholder claims that he/she did not receive the initial disclosure or other forms required by Program Committee at the point of sale.	  	Completed written dispute form from Purchaser stating the claim by the Cardholder	  	Well documented procedure in plance and training regarding the handing out of the Initial Disclosure or other forms required.
				
	Breach of representation or warranty of Sears that relates directly to the Cardholder’s complaint.	  	Purchaser to provide detail to Sears with respect to the specific breach and amount of Chargeback.	  	Proof of breach by Sears.	  	Proof of compliance in all material respects with representation or warranty.

  
 A-14

 SCHEDULE B 
 Cost of Funds Adjustment 
  

	1.	The net Settlement Amount shall equal total sales and Chargeback reversals minus total credits, returns, and Chargebacks. 

 

	2.	The Merchant Discount payable by Sears (if applicable) will be calculated daily and subtracted from the total amount due to Sears as described in the Agreement.

  

	3.	The Cost Of Funds Adjustment will be calculated according to the following formula: 

 

											
						
		 	S x I	 	X	 	D	 		 	
						
		 	 	 		 		 		 	
						
		 	365	 		 		 		 	

 I     =     The Prime Rate as reported in the Wall Street Journal for the
day of settlement 
 S     =     Each Business Days’ Settlement Amount or any other amount
due Sears 
 D    =     The “Number of Days Late” as defined below: 

 

	 	1)	For payment of Settlement Amount, the Number of Days Late means the number of days after the day of receipt of Sales Records and Refunds of Sears that the Settlement
Amount is not paid to Sears; where such Sales Records and Refunds are received before 3:00 a.m. Toronto Time by Processor. 

  

	 	2)	For any other amount due Sears, the Number of Days Late means the number of days payment is not made to Sears after due date. 

 SCHEDULE C 
 Service Levels and Service Level Credits 
 The following sets forth the obligations of
Purchaser with respect to Service Level Areas (“SLAs”) and credits to be added to net settlement due to Sears from Purchaser in respect of Purchaser’s failure to meet SLA, as set forth below (“SLA Credits”) in connection
with its obligations under the Merchant Agreement. 
 Purchaser at no time shall be held accountable for a failure to meet a SLA if such failure
is primarily caused by Sears. 
  

											
	 Service Level
 Area
	  	 Definition
	  	 Target

Performance
	  	 Minimum

Target

(“Yellow”)
	  	 SLA Credit
	  	 Exceptions or
Exclusions

	Web Service Availability	  	Currently not available	  		  		  		  	
						
	E-mail response time1	  	The number of hours between receipt of e-mails and answer to e-mails from Cardholders. Measured as the average over each month.	  	24 hours	  	48 hours	  	$.03 per late response to email	  	N/A
						
	Plastics Production	  	Average based on the number of days between request date and date all plastic cards requested are mailed each month.	  	2 days	  	7 days	  	$10,000 per day	  	N/A

  
  

	1 	 This service standard is not measured today. The parties will work together in good faith following the Effective Date to develop the appropriate
definition (including the definition of “system change”), method of computation, historical data and target for such standard. The parties will present their recommendation to the Management Committee in the March 2006 committee meeting.
From the Effective Date until the Management Committee approves the Service Standard, Purchaser shall not modify the currently prevailing service standard in a manner that would adversely affect the provision of customer service.

											
	 Service Level
 Area
	  	 Definition
	  	 Target

Performance
	  	 Minimum

Target

(“Yellow”)
	  	 SLA Credit
	  	 Exceptions or
Exclusions

	Daily Files and Reports2	  	The time frame by which the requested and agreed upon daily reports are accurately processed and forwarded to Sears.	  	Next Business Day	  	Next Business Day	  	 After 5 timeliness failures in any month, $5000 per day service level credit if any additional violations occur in such
month.
  
 In the event of inaccurate files or reports, Purchaser shall
reimburse Sears for its actual out-of-pocket costs to correct such inaccuracies.
	  	Files must be received on prior day by 12:00 EST; Confirmation files, reject files and Chargeback files must be received on prior day by 13:00 EST
						
	 Monthly Files
 and
Reports3
	  	The time frame by which the routine monthly reports requested and agreed upon by the Management Committee are accurately processed and forwarded to Sears. The standard set forth
herein shall not apply to ad hoc reports requested by Sears that are not part of the monthly reports.	  	Arrive by the 10 Business Day of the month.	  	 Arrives by
 the 12 Business Day of the month.
	  	 After 3 timeliness failures in any 12 month period,
 $5000 per monthly report service level infraction.
  
 In the event of inaccurate files or reports, Purchaser shall reimburse Sears for its actual out-of-pocket costs to correct such inaccuracies.
	  	

  
 Definitions The following terms appearing in
the Merchant Service Levels shall have the following meanings: 
 “Month” means the period from 00:00:00 on the first day of the
calendar month through 23:59:59 on the last calendar day of the month. 
 “SLA Percentage” means the percent of time that the
applicable SLA was not met during the calendar month. It is calculated as (1-((total minutes in the calendar month minus the total infraction minutes) divided by total minutes in the calendar month)). For example, assuming in the month of July (31
days) there were 300 minutes of missed target (“Yellow”), the SLA Percentage would equal 1-((31days*24hours*60minutes)-300)/ (31days*24hours*60minutes)= 1- (99.32%)= .0068. 

 
  

	2 	 This service standard is not measured today. The parties will work together in good faith following the Effective Date to develop the appropriate
definition (including the definition of “system change”), method of computation, historical data and target for such standard. The parties will present their recommendation to the Management Committee in the March 2006 committee meeting.
From the Effective Date until the Management Committee approves the Service Standard, Purchaser shall not modify the currently prevailing service standard in a manner that would adversely affect the provision of customer service.

	3 	 This service standard is not measured today. The parties will work together in good faith following the Effective Date to develop the appropriate
definition (including the definition of “system change”), method of computation, historical data and target for such standard. The parties will present their recommendation to the Management Committee in the March 2006 committee meeting.
From the Effective Date until the Management Committee approves the Service Standard, Purchaser shall not modify the currently prevailing service standard in a manner that would adversely affect the provision of customer service.

 In, for example, the Authorization System Availability test, the threshold for penalty is 99.65%, so
penalty calculation takes place only if the SLA percentage falls below the threshold. 
  

	 	•	 	 Performance Reports. Purchaser will monitor, measure, and analyze systems performance as it compares to the SLAs. Where warranted, Purchaser
will recommend to Sears potential changes to the applications software to enable system performance improvement. Specific traffic monitoring and reporting will occur for the connection between Purchaser and TSYS. Should capacity of that connection
rise above 80%, Purchaser will notify Sears and upgrade the connection within a mu-tually agreeable timeframe. 

 Within 24 hours after any production problem (including any partial outage) relating to the services, Purchaser shall deliver an individual outage report specifying the site(s) and types of transactions
affected, time of outage, time to repair such outage, and a root cause analysis, if available. Purchaser shall deliver a monthly outage report describing the service malfunctions during such month, the mean time to repair all such malfunctions, the
causes for such malfunctions and a root cause analysis highlighting any malfunction patterns. 
 Purchaser shall be responsible
for ensuring that security policies are followed and implemented. Purchaser agrees to promptly report any violations to Sears. 
  

	 	•	 	 Fraud. Purchaser will notify Sears as soon as practical of incidents of Partner Merchant or Cardholder fraud. 

Sears will complete a Card Sale only if the signature on the sales draft or Sales Record is the same as the signature appearing on the
Sears Credit Card (which signature may, but need not be, the name embossed or printed on the Sears Credit Card). If identification is uncertain or if Sears otherwise questions the validity of the Sears Credit Card, it will promptly contact Purchaser
for Authorization and other instructions. 

 SCHEDULE A 

Credit Goals 

Approval Rates 
 For
purposes of this schedule, “Approval Rate” for any particular period means: the number expressed as a percentage that is calculated by dividing the number of new Accounts by the number of Account Applications received during that period.
For purposes of this calculation, Account Applications will not include applications determined to be fraudulent, duplicate or received from existing Cardholders and Accounts will not include new Accounts generated from such applications.

 Point of Sale Approval Rate Goal (“PARG”) means a rolling 12-month average Approval Rate goal for new
Accounts opened through Sears’ stores point of sale network (“POS”) of 82% 
 Internet Approval Rate Goal
(“IARG”) means a rolling 12-month average Approval Rate goal for new Accounts opened through the internet of 20% 
 Other Channel Approval Rate Goal (“OARG”) means a rolling 12-month average Approval Rate goal for new Accounts opened through non-POS and non-internet channels (“Other
Channels”): 50%. For purposes of clarity, Other Channels include catalog and take-one applications. 
 Approval Rates
will be measured monthly on a rolling 12-month basis. For purposes of determining whether a negative variance from any goal has occurred, the Approval Rate for each channel shall be measured independently, and shall not be aggregated. 

Subject to 2.1(b), if a negative variance to such goals occurs, then Purchaser and Sears will endeavor to identify the root cause of the
variance. The parties will specifically review changes between the applicable 12-month period and the 12-month period prior to the Effective Date (or such other time that the relevant Approval Rate Goals are reset) with respect to (i) the
applicant demographics and (ii) the mix and amount of Deferred Financing. If Sears, acting reasonably, determines that a negative variance was the result of any of these changes (an “Unpreventable Approval Rate Condition”),
then the Management Committee will determine whether new standards are required to meet the Approval Rate goals and establish such standards. Purchaser is not responsible for the negative variance to the goals resulting from an Unpreventable
Approval Rate Condition. 
 In the event that (i) there is a negative variance to any of the applicable Approval Rate
Goals, (ii) such negative variance is not the result of an Unpreventable Approval Rate Condition, Purchaser will immediately develop a remedial plan to address the negative variance and present this plan to the Management Committee. If the
negative variance is not eliminated within two months and there is no intervening Unpreventable Approval Rate Condition relating to that particular Approval Rate Goal, Purchaser shall be subject to penalties for any continuing negative variance in
any month in respect of the Approval Rate for the month that is continuing to experience a negative variance calculated as follows: 

 The sum of (but not less than $0): 

MAV x (PARG-APAR) x $150 
         plus 
 MAV x (IARG-AIAR) x $ 150

         plus 
 MAV x (OARG-AOAR) x $150 
 Where: 

MAV    =   Monthly application volume for the month being measured 

PARG   =   POS Approval Rate Goal 
 APAR  =   Actual 12-Month Average POS Approval Rate for that month 
 IARG    =   Internet Approval Rate Goal 
 AIAR
  =   Actual 12-Month Average Internet Approval Rate for that month 
 OARG  =   Other
Channel Approval Rate Goal 
 AOAR  =   Actual 12-Month Average Other Channel Approval Rate for that month

  
 A-20

 Authorization Approval Rates 
 “Unit Authorization Approval Rate” for any particular period means the number expressed as a percentage that is calculated by dividing the number of approved Cardholder credit transactions by
the number of authorization requests successfully submitted by a Store on behalf of Cardholders. For purposes of this calculation, Unit Authorization Approval Rate includes only authorization requests on behalf of Cardholders with charging
privileges with respect to an unexpired Sears Credit Card (for clarification purposes, charging privileges are not revoked for Cardholders with no “open to buy”) and does not include duplicate authorization requests or incomplete
authorization requests resulting from Store failures (systemic or manual). The Unit Authorization Approval Rate will be calculated by Purchaser utilizing information derived in a manner substantially similar to that utilized immediately prior to the
Effective Date. Unit Authorization Approval Rates will be measured monthly on a rolling 12-month basis. 
 “Dollar Authorization Approval
Rate” for any particular period means the number expressed as a percentage that is calculated by dividing the total dollar value of approved Cardholder credit transactions by the total dollar value of authorization requests successfully
submitted by a Store on behalf of Cardholders. For purposes of this calculation, Dollar Authorization Approval Rate includes only authorization requests on behalf of Cardholders with charging privileges with respect to an unexpired Sears Credit Card
(for clarification purposes, charging privileges are not revoked for Cardholders with no “open to buy”) and does not include duplicate authorization requests or incomplete authorization requests resulting from Store failures (systemic or
manual). The Dollar Authorization Approval Rate will be calculated by Purchaser utilizing information derived in a manner substantially similar to that utilized immediately prior to the Effective Date. Dollar Authorization Approval Rates will be
measured monthly on a rolling 12-month basis. 
 Unit Authorization Approval Rate Goal (“AARG”) means a rolling 12-month
average Unit Authorization Approval Rate for the Sears Credit Cards of 97%. 
 The Management Committee will establish the Dollar Authorization
Approval Rate Goal (“DAARG”) as a report to capture the Dollar Authorization Approval Rate. The target date for this report will be determined by the Management Committee after the requirements and work effort estimates are completed by
Purchaser. The goal is to present this to the Management Committee at the January 2006 meeting. The parties will begin the process of creating the report measuring the DAARG within two months after the Effective Date and the standard will be the
historical average for two months after the report is available. 
 Subject to Section 2.1(b), if a negative variance to
either of the goals occurs, then Purchaser and Sears will endeavor to determine the root cause of the variance. The parties will specifically review changes between the applicable 12-month period and the 12-month period prior to the Effective Date
with respect to (i) the Cardholder demographics and (ii) the mix and amount of Deferred Financing. If Sears, acting reasonably, determines that the negative variance was the result of any of these changes (an “Unpreventable
Authorization Approval Rate Condition”), then the Management Committee will determine whether new standards are required to meet either of the Authorization Approval Rate Goals and establish such standards. Purchaser is not responsible for
the negative variance to the goals due to an Unpreventable Authorization Rate Condition. 

  
 A-21

 In the event that (i) there is a negative variance to either of the Authorization
Approval Rate goals and (ii) such negative variance is not the result of an Unpreventable Authorization Approval Rate Condition, Purchaser will promptly develop a remedial plan to address the negative variance and present this plan to the
Management Committee. If the negative variance is not eliminated within two months and there is no intervening Unpreventable Authorization Approval Rate Condition, Purchaser shall be subject to penalties for any continuing negative variance in any
month in respect of such Authorization Approval Rate that is continuing to experience a negative variance calculated as follows: 
  

							
	 Basis Points
 Below
Each
 Authorization

Approval
 Rate Goal
	  	 	  	 Negative Variance Penalty

	 26 — 50
	  	=	  	$37.5K	  	Per month the variance exists
	 51 — 100
	  	=	  	$50K	  	Per month the variance exists
	 101 — 150
	  	=	  	$125K	  	Per month the variance exists
	 > 150
	  	=	  	$250K	  	Per month the variance exists

  
 A-22

 Additional Provisions 
 The authorizations’ credit and fraud policies should ensure that customers be allowed to exceed their limit at an appropriate risk level for Merchandise at a Store. 

Account Applications and authorization requests from Cantrex retail activities will not be included in measurement of any Credit Goals
until such time as the Management Committee amends the Credit Goals appropriately for its inclusion. 
 Any time that a negative
variance occurs that is not caused by an Unpreventable Approval Rate Condition or an Unpreventable Authorization Approval Rate Condition, Senior Officers shall be notified of the negative variance. 

The Approval Rate and Authorization Approval Rate goals are collectively referred to as “Credit Goals.” Whenever the cumulative
penalties paid by Purchaser in connection with the Credit Goals (such cumulative penalties, the “Penalties”) exceed $1 million in any rolling 12-month period there will be an immediate meeting of the Executive Committee to discuss
resolution of the negative variance. 
 Payment by Purchaser of cumulative Penalties in any rolling 12-month period of $6
million or more shall be deemed to be a Major Credit Event, and Sears shall have the right to terminate the Agreement in accordance with the provisions of Section 13.2(g) hereof. 

  
 A-23

 SCHEDULE B 
 CREDIT PROTECTION PRODUCTS  
 Credit Protection Plan 

Credit Protection Plan pays up to C$10,000 and pays the minimum monthly payments for Sears cardholders in the event of involuntary job loss, total
disability, hospitalization, internal cancer or death. Also, Sears purchases may be protected against loss or damage for 36 months from the date of purchase. The credit protection plan costs C$1.29 per C$100 of monthly outstanding balance on the
Sears Card and $0.99 per C$100 on the Sears MasterCard. 
 Card Assist 
 CardAssist is a program whereby members are protected in the event of the loss or theft of their credit, debit or charge cards. Members’ services are available 24 hours/day from virtually anywhere in
the world. A single call will result in immediate cancellation of all cards and requests for new cards to be issued. Other members benefits include: mobile phone registration, important document registry, fraud protection, C$500 card theft reward,
emergency airline tickets and change of address service. One year membership is C$24.95. 
 DISCOVER PROCESSING SERVICES 

Sears Canada also provides processing services for the Discover Card in Canada and receives a fee for the service. The revenue is also booked under the
financial products business. 

  
 B-1

 SCHEDULE C 
 Service Standards 
 The terms herein are incorporated into the Program
Agreement to which this Disclosure Schedule is attached. Any standards indicated as “TBD” or that Sears and Purchaser reasonably determine during transition planning do not reflect Sears’ current capabilities will be updated prior to
the Effective Date. 
  

	I.	Store Operation Standards 

  

	 	A.	Electronic New Accounts 

  

	 	1.	A minimum of 99.65% of all point of sale instant credit applications will be processed and an approval, decline or pend for review decision will be communicated to the
Store within 25-40 seconds from time of receipt. The remaining transactions will be decisioned within one hour from time of receipt. The 25-40 second standard applies to Purchaser’s response, without reference to delays solely attributable to
Sears’ systems. Incomplete applications will not be included in this measure. 

  

	 	B.	Non Electronic New Accounts 

  

	 	1.	A minimum of 95% of all Store new account transactions transmitted in a non-electronic “system down” environment will be processed and an approval, decline or
pend for review decision will be communicated to the Store within 5 minutes or less. The remaining transactions will be decisioned within two hours from time of receipt. Incomplete applications will not be included in this measure.

  

	 	C.	New Account System Availability 

  

	 	1.	The Electronic New Account system will be fully operational to process instant credit applications a minimum of 99.7% of all hours that Stores are open. The electronic
new account system will be fully operational to process 99.7% of all instant credit applications on Sears.ca. 

  

	 	D.	Electronic Authorization 

  

	 	1.	A minimum of 99.65% of all add-on sales authorization requests will be processed and an approval, decline or pend for review decision will be communicated to the Store
within 2 seconds from time of receipt. The remaining transactions will be decisioned within one hour from time of receipt. The 2-second standard applies to Purchaser’s response, without reference to delays attributable solely to Sears’
systems. 

  
 C-1

	 	E.	Non Electronic Authorization 

  

	 	1.	A minimum of 95% of all authorization transactions involving sales above the floor limit processed in a non-electronic “system down” environment will be
processed and an approval, decline or pend for review decision will be communicated to the Store within 5 minutes or less from the time Sears submitted the authorization request, either by telephone or fax. The remaining transactions will be
decisioned within two (2) to forty eight (48) hours of receipt. 

  

	 	F.	Authorization System Availability 

  

	 	1.	The Electronic Authorization System will be fully operational to process authorization requests 99.7% of each day. 

 

	 	G.	Account Number Lookup 

  

	 	1.	A minimum of 99.65% of all account number lookups will be processed within 2 seconds. A minimum of 90% of all account number lookup calls will be automatically matched
by the system, provided that 98% of the account number lookups are submitted by the Store with the correct Cardholder information. The remaining calls will be handled within service standards that are consistent with the practices and standards
utilized as of the Effective Date. 

 Store Operations Measurement: 

These standards will be measured monthly on reports (in a form reasonably acceptable to both parties) and provided by Purchaser. These
standards will be calculated by Purchaser utilizing information substantially similar to the information utilized immediately prior to the Effective Date. The calculations will not include scheduled maintenance outages. 

Failure to meet Store Operation Standards: 
 System downtime attributable primarily to a failure of Sears’ systems shall not be subject to Store Operation Standards set out in A through G above. Purchaser is not responsible for Store Operation
Standards that fail during the term of the Transition Services Agreement and the three months subsequent. 
 Purchaser’s
failure to successfully perform all of the Store Operations Standards set out in A through G in any month (i.e., if Purchaser has failed at least one), will result in a “Failed Month”. If there are more than two Failed Months in any
rolling six-month period then the Purchaser will enter a penalty phase that shall continue until Purchaser has three consecutive months without a Failed Month. Each service level failure during the penalty phase will result in the following
liquidated damages payable by Purchaser to Sears. 

  
 C-2

 To the extent that the negative variance related to any particular monthly standard, the
following penalties shall apply: 
  

					
	 025-050 bps
	  	$	25,000	  
	 051-150 bps
	  	$	50,000	  
	 151-250 bps
	  	$	100,000	  
	 251-350 bps
	  	$	200,000	  
	 351-400 bps
	  	$	300,000	  

  

	II.	Customer Service Standards 

  

	 	A.	Cardholder Services 

  

	 	1.	A toll-free customer service IVR telephone line will be established for Cardholders seeking general Account information and other customer service related to their
Sears Credit Card. The toll-free number will be published on ’the Cardholder’s monthly billing statement. The IVR will be consistent with Sears’ practices in existence as of the Effective Date and will include the following customer
request options: 

  

	 	a.	French-speaking Cardholders will have the option to speak to a French -speaking customer service representative. 

 

	 	b.	Available credit 

  

	 	c.	Payment due amount 

  

	 	d.	Payment due date 

  

	 	e.	Last five transactions on the account 

  

	 	f.	Address for payments 

  

	 	g.	Address for written inquiries 

  

	 	h.	Option to request copy of last billing statement 

  

	 	i.	Current balance due 

  

	 	j.	Pin # request 

  

	 	k.	Pay by Phone 

  

	 	l.	Line Increases/decreases 

  

	 	m.	Card Replacement 

  

	 	n.	Rewards redemption 

  

	 	o.	Lost/Stolen Cards 

  

	 	2.	Other general Account information and customer service inquiries will be available through a customer service representative. A monthly Service Level requiring 80% of
all customer service calls to be answered within 20 seconds, and a monthly Average Speed of Answer(ASA) of 30 seconds will be maintained. 

  
 C-3

	 	3.	A monthly ASA requiring 80% of all authorization calls to be answered within 10 seconds. 

 

	 	4.	The average monthly abandon rate for calls to the customer service and authorization telephone lines shall not exceed 3%. (Customer calls abandoned in the first 10
seconds following connection are not included in the daily abandon rate count.) 

  

	 	5.	During periods of non-electronic new account or non-electronic authorizations the customer service levels set out above will not apply with the exception that the IVR
will continue to be operable. 

  

	 	6.	 The parties will work together to develop appropriate monthly service standards for 1st Call Resolution Rate, Transfer Rate, and Customer Satisfaction. These service standards are not measured today. The
parties will work together in good faith following the Effective Date to develop the appropriate definition, method of computation, historical data, and target for such standards. The parties will present their recommendation to the Management
Committee by June 30, 2006. From the Effective Date until the Management Committee approves t these new standards, Purchaser shall not make any changes that would adversely affect customer service. 

Customer Service Measurement: 
 These
standards will be measured monthly on reports (in a form reasonably acceptable to both parties) and provided by Purchaser. 
 Failure to meet
Customer Service Standards 
 If Purchaser fails to meet any two Service Standards in a month, it shall be deemed to have a
“Failed Month”. If there are more than two Failed Months in any rolling six-month period then the Purchaser will enter a penalty phase that shall continue until Purchaser has three consecutive months without a Failed Month. Each subsequent
Failed Month during the penalty phase will result in liquidated damages of $25,000 payable by Purchaser to Sears. 
  

	III.	General Standards 

  

	 	A.	Hours of Operation 

  

	 	1.	An IVR will be made available 24 hours a day, seven days a week for use by customers and Stores. 

 

	 	2.	Purchaser shall operate the following telephone departments during the days and hours listed below. Purchaser shall extend these hours to accommodate Sears when Store
hours are extended due to special sales 

  
 C-4

 events and seasonal demands. A minimum of fifteen business days written advance notice is
required from Sears to enable Purchaser to accommodate the change in normal operating hours, or temporary change in operating hours due to a holiday or sales event. 
  

New Accounts:                 24 hours a day 

                       
                   7 days per week 

(including store communications toll-free telephone line) 
 Authorizations Private Label: 

                       
                 7:30a.m.—12:00a.m. (EST) M-F 
                                   
      7:30a.m.—8:00p.m. (EST) SAT 

                       
                 10:00a.m.—9:00p.m. (EST) SUN 
 Customer Service Private Label: 

                       
                 8:00a.m.—9:00p.m. (EST) M-F 
                                   
      8:00a.m.—8:00p.m. (EST) SAT 

                       
                 CLOSED SUNDAY 
 Customer
Service Co-Brand: 

                       
                 24 hours, 7 days per week 
  

	 	B.	Customer Service Standards 

  

	 	1.	A minimum of 95% of all customer complaints will be resolved within 45 days of the customer’s initial contact (including phone, in person, internet or mail
contact), including those which require media retrieval. All others will be resolved within 60 days. 

  

	 	2.	Customer dispute resolutions shall be fair, consistent with how Purchaser generally handles disputes for other client programs, and performed with the goal of
maintaining a positive relationship between Cardholder, Sears and Purchaser. 

  

	 	C.	Collections 

  

	 	1.	Purchaser will perform all collection activity in compliance with all applicable Law. 

 

	 	2.	Collection calls and letters will not be initiated prior to five days after the date at which the payment due was not satisfied on accounts delinquent less than 30
days. 

  

	 	3.	Collection activities will be conducted in a professional manner, with an understanding and acknowledgement that Sears desires to maintain a positive customer
relationship with the Cardholder, regardless of the status of Cardholder’s Account with Purchaser. 

  
 C-5

 D. Notice 
  

	 	1.	The parties will work together to develop appropriate service standards and penalties around notice for any change in customer service standards. This would include
providing the Management Committee with notice of any significant changes. 

 General Standards
Measurement: 
 Sears will periodically perform monitoring of Purchaser’s calls with Cardholders and will be permitted
to sample and review Accounts. Purchaser agrees to provide Sears representatives periodic access to operations facilities and the documentation described above for this purpose. These standards will be measured monthly on reports (in a form mutually
acceptable to both parties) and provided by Purchaser. 
 Failure to meet General Standards: 

Unfavorable results will be discussed by the Management Committee and appropriate action plans will be developed. In the event of
disagreement either party may refer matters to the Executive Committee as if such disagreement represented a Dispute. 
  

	IV.	Merchant Service Levels 

 The following
sets forth the obligations of Purchaser with respect to Service Level Areas (“SLAs”) and credits to be added to net settlement due to Sears from Purchaser in respect of Purchaser’s failure to meet SLAs (“SLA Credits”), as
set forth below in connection with its obligations under the Merchant Agreement. 
 Purchaser at no time shall be held accountable for a failure
to meet a SLA if such failure is primarily caused by Sears. 
  

											
	Service Level Area	  	 Definition
	  	 Target Performance
	  	 Minimum

Target

(“Yellow”)
	  	 SLA Credit
	  	 Exceptions or

Exclusions

	 Web Service Availability
	  	Currently not available	  		  		  		  	
						
	E-mail response time1	  	 The number of hours between receipt of e-mails and answer to e-mails from
 Cardholders. Measured as the average over each month.
	  	24 hours	  	48 hours	  	$.03 per late response to email	  	 N/A

						
	Plastics	  	 Average based on the
	  	2 days	  	7 days	  	$10,000 per day	  	 N/A

  

	1 	 This service standard is not measured today. The parties will work together in good faith following the Effective Date to develop the appropriate
definition (including the definition of “system change”), method of computation, historical data and target for such standard. The parties will present their recommendation to the Management Committee in the March 2006 committee meeting.
From the Effective Date until the Management Committee approves the Service Standard, Purchaser shall not modify the currently prevailing service standard in a manner that would adversely effect the provision of customer service.

  
 C-6

											
	 Service Level Area
	  	 Definition
	  	Target Performance	  	Minimum
Target (“Yellow”)	  	 SLA Credit
	  	Exceptions or
Exclusions
	 Production
	  	number of days between request date and date all plastic cards requested are mailed each month.	  		  		  		  	
						
	 Daily Files and Reports2
	  	The time frame by which the requested and agreed upon daily reports are accurately processed and forwarded to Sears.	  	Next
Business
Day	  	Next Business
Day	  	After 5 timeliness failures in any month, $5000 per day service level credit if any additional violations occur in such month.	  	Files must
be
received
on prior
day by
12:00
EST;
Confirmation
files,
reject files
and
Chargeback
files must
be
received
on prior
day by
13:00 EST

		  		  		  		  	  
 In the event of inaccurate files or reports, Purchaser shall
reimburse Sears for its actual out-of-pocket costs to correct such inaccuracies.
	  
						
	 Monthly Files and Reports3
	  	The time frame by which the routine monthly reports requested and agreed upon by the Management Committee are accurately processed and forwarded to Sears. The standard set forth
herein shall not apply to ad hoc reports requested by Sears that are not part of the monthly reports.	  	Arrive
by the
10
Business
Day
of the
month.	  	Arrives by
 the 12 Business
Day of
the
month.
	  	After 3 timeliness failures in any 12 month period, $5000 per monthly report service level infraction.	  	
						
		  		  		  		  	In the event of inaccurate files or reports, Purchaser shall reimburse Sears for its actual out-of-pocket costs to correct such inaccuracies.	  	

 Definitions The following terms appearing in the Merchant Service Levels shall have the following meanings:

  
  

	2 	 This service standard is not measured today. The parties will work together in good faith following the Effective Date to develop the appropriate
definition (including the definition of “system change”), method of computation, historical data and target for such standard. The parties will present their recommendation to the Management Committee in the March 2006 committee meeting.
From the Effective Date until the Management Committee approves the Service Standard, Purchaser shall not modify the currently prevailing service standard in a manner that would adversely effect the provision of customer service.

	3 	 This service standard is not measured today. The parties will work together in good faith following the Effective Date to develop the appropriate
definition (including the definition of “system change”), method of computation, historical data and target for such standard. The parties will present their recommendation to the Management Committee in the March 2006 committee meeting.
From the Effective Date until the Management Committee approves the Service Standard, Purchaser shall not modify the currently prevailing service standard in a manner that would adversely effect the provision of customer service.

  
 C-7

 “Month” means the period from 00:00:00 on the first day of the calendar month through
23:59:59 on the last calendar day of the month. 
 “SLA Percentage” means the percent of time that the applicable SLA was not
met during the calendar month. It is calculated as (1-((total minutes in the calendar month minus the total infraction minutes) divided by total minutes in the calendar month)). For example, assuming in the month of July (31 days) there were 300
minutes of missed target (“Yellow”), the SLA Percentage would equal l-((31days*24hours*60minutes)-300)/ (31days*24hours*60minutes)= 1- (99.32%)= .0068. 
 In, for example, the Authorization System Availability test, the threshold for penalty is 99.65%, so penalty calculation takes place only if the SLA percentage falls below the threshold.

  

	•	 	 Performance Reports. Purchaser will- monitor, measure, and analyze systems performance as it compares to the SLAs. Where warranted, Purchaser
will recommend to Sears potential changes to the applications software to enable system performance improvement. Specific traffic monitoring and reporting will occur for the connection between Purchaser and TSYS. Should capacity of that connection
rise above 80%, Purchaser will notify Sears and upgrade the connection within a mutually agreeable timeframe. 

Within 24 hours after any production problem (including any partial outage) relating to the services, Purchaser shall deliver an
individual outage report specifying the site(s) and types of transactions affected, time of outage, time to repair such outage, and a root cause analysis, if available. Purchaser shall deliver a monthly outage report describing the service
malfunctions during such month, the mean time to repair all such malfunctions, the causes for such malfunctions and a root cause analysis highlighting any malfunction patterns. 

Purchaser shall be responsible for ensuring that security policies are followed and implemented. Purchaser agrees to promptly report any
violations to Sears. 
  

	•	 	 Fraud. Purchaser will notify Sears as soon as practical of incidents of Partner Merchant or Cardholder fraud. 

Sears will complete a Card Sale only if the signature on the sales draft or Sales Record is the same as the signature appearing on the
Sears Credit Card (which signature may, but need not be, the name embossed or printed on the Sears Credit Card). If identification is uncertain or if Sears otherwise questions the validity of the Sears Credit Card, it will promptly contact Purchaser
for Authorization and other instructions. 
  

	V.	Financial Products 

 The parties will work
together in good faith prior to the Effective Date to develop the appropriate definition, method of computation, historical data and target for such standards and goals applicable to Financial Products. In the event the parties do not have specific
standards at such time, from the Effective Date until the Management Committee approves such Service Standards, Purchaser shall not have standards that would adversely affect customer service as compared to such service prior to the Effective Time.

  
 C-8

 The parties will also develop appropriate penalties for failure to meet such goals (taking into account the
financial impact on Sears). 
  

	VI.	Additional Provisions 

 Whenever the
cumulative penalties paid by Purchaser under this Schedule C exceed $500 thousand in any rolling 12-month period there will be an immediate meeting of the Executive Committee to discuss resolution of the negative variances. Additionally, Senior
Officers shall be notified of the negative variances. 
 Payment by Purchaser of cumulative Penalties in any rolling 12-month period of $6
million or more shall be deemed to be a Major Service Event, and Sears shall have the right to terminate the Agreement in accordance with the provisions of Section 13.2 hereof. 

  
 C-9

 SCHEDULE D 
 MEMBERSHIP PROGRAMS 
 Sears Canada offers four fee-based loyalty membership programs for
its customers: 
  

	¢	 	 Sears New Outlook (for people over 50) 

  

	¢	 	 Sears Family First Club for those with younger children 

 

	¢	 	 Sears Welcome Home for home owners 

  

	¢	 	 Sears Canada Craftsman Club for home workshop/tools customers 

 These programs charge C$24.99 for a one-year membership. 
 Membership benefits include
subscription to a special interest magazine, a gift card and discount coupons as follows: 
  

									
	 Fee Based Program
	  	 Coupons
	  	 Magazine Subscription
	  	 Gift Card
	  	 Other

	 SEARS NEW OUTLOOK
	  	Over $1,000 at Sears	  	New Outlook	  	$5	  	BLOCKBUSTER Rewards membership
					
	 SEARS FAMILY FIRST CLUB
	  	Over $1,000 at Sears	  	Today’s Parent	  	$5	  	BLOCKBUSTER Rewards membership
					
	 SEARS WECOME HOME
	  	Over $3,000 at Sears and Sears HomeCentral	  	Canadian Home and Country	  	$5	  	Manage My Home CD-ROM
					
	 SEARS CANADA CRAFTSMAN CLUB
	  	Over $2,000 on Craftsman products	  	Canadian Home Workshop	  	$5	  	8” Craftsman reversible wrench

  
 D-1

 THIRD PARTY INSURANCE PRODUCTS 
 Sears customers are also offered various traditional insurance products by third parties. The financial products business provides the cardholder list subject to cardholder consent and applicable law, to
various insurance companies. The insurance companies market their traditional insurance products under the Sears brand using the cardholder list through telemarketing, direct mail and statement inserts and Sears is paid a commission on each
successful sale. These products include: 
 Allstate 
 Hospital Income (Mediplus) 
 Life 
 Aegon Plans 
 A&S HIP 
 ACC PARALYSIS 
 AD 
 AD Voluntary/EVAD 
 AD&D 
 AHIP 
 ARCP 
 BIRTHDAY LIFE 
 CAAP (Health Extras) 
 CANCER 
 GBL 
 JUVENILE TERM 
 LAD (BILL PAYOR) 
 PTD 
 UNIV ACCIDENT 
 Manulife Plans 
 Term Life 
 AD 
 Health and Dental 
 ACE INA Plans 
 Serious Illness 

  
 D-2

 SCHEDULE E 
 REWARDS PROGRAMS 
 Sears Club/ Sears Colours 

Sears Club was launched in 1987, an extension of the successful Catalogue Club and the first national loyalty program by a retail chain in Canada.
Membership is open to all Sears Cardholders who can collect Sears Club Points on eligible Sears Card purchases from Sears channels such as retail, catalogue, website, outlets and dealers. Customers collect one Sears Club Point for almost every
dollar spent on their Sears Card. When Sears Club members reach 1,000 Sears Club Points they can start redeeming their points for Sears Club rewards. 
 Points earned by customers through third party sales represent approximately 5% of Sears Club’s annual points issued. Sears Canada’s arrangements with PetroCanada make up over 50% of its third
party sales. Sears Canada Inc. stimulates its Sears Club members through the ability to redeem Sears Club points for Sears Club certificates which can be used for Sears merchandise and services. Sears Club encourages customer retention and loyalty
as well as cross-shopping at all Sears channels thus strengthening customers’ affinity to Sears Canada Inc. as a whole. Sears Club members are very loyal and are passionate about their Sears Club Points. 

Sears Club members can choose from a variety of Sears Club rewards. Customers can start redeeming at the 1,000 Sears Club Point level for a Sears Club
Certificate good for any Sears merchandise, services or Sears Travel. (See Sears Club Value Chart below). Customers also have the option to redeem for other rewards outside of Sears...Such as Amazon.ca, Cara Gift Cards that includes Cara Gift Cards
that includes Swiss Chalet, Montana’s, Kelseys, Outback, Milestones, Petro-Canada Gift Cards, Famous Players passes and Pharmasave Gift certificates. 
 Customers also have the option to convert their Sears Club Points to PETRO-POINTS and vice versa to get to Rewards faster or to donate their Sears Club Points to Boys and Girls Clubs of Canada.

 Sears has also formed strategic alliances with other companies to enhance the benefits offered by the Sears Card and the Sears Club loyalty
program. Partners include Petro Canada, Pharmasave, Choice Hotels, Ticketmaster, Admission, AVIS, Roots, VIA Rail Canada, AMJ Campbell Van Lines, Rob McIntosh China and Crystal Shops, Active Green + Ross, Kal tire, President Tire and TicketKing. The
Sears Card is accepted by these partners, which allows Sears Club members to collect Sears Club Points faster. 
 Sears MasterCard Colours
Loyalty program offers a 1.5% earning rate on Sears in-store purchases and a 1.0% earning rate on out-of-store purchases. The redemption value is targeted to 1% or less. The weighted average is 0.83% on redemption value. 

The Colours reward programs offers Sears Club Gift Cards as a redemption option at many different levels. Customers are using them to shop at Sears more.

  
 E-1

 Other redemption options that are offered in the colours rewards program at different redemption levels are
Rob McIntosh, Amazon.ca, Cara Gift Cards that include Swiss chalet, Montana’s, Kelseys, Outback, Milestones, Flowers by Sears, Pizza Pizza, Pharmasave, HMV, TicketKing, BLOCKBUSTER, Sears Travel, Choice Hotels, Famous Players, Ticketmaster and
Petro-Canada. 
 Customers are redeeming frequently for these reward. The following table shows partners for Sears Club and Colours: 

Table: Redemption and Card Acceptance at Partners 
  

					
	Partners	  	 Sears Club

(Proprietary)
	  	 Colours

(Sears MasterCard)

	 BLOCKBUSTER
	  	Redemption	  	Redemption
			
	 Famous Players
	  	Redemption	  	Redemption
			
	 PetroCanada
	  	Card Acceptance	  	Redemption
			
		  	Redemption	  	
			
		  	Points exchange	  	
			
	 Choice Hotels
	  	Card acceptance	  	Redemption
			
	 Pharmasave
	  	Card Acceptance	  	Redemption
			
		  	Redemption	  	
			
	 Admission/Ticketmaster
	  	Card Acceptance	  	Redemption
			
	 Avis
	  	Card Acceptance	  	
			
	 Rob McIntosh
	  	Card Acceptance	  	Redemption
			
	 Roots
	  	Card Acceptance	  	
	 KalTire, Active Green

+ Ross, President Tire
	  	Card Acceptance	  	
			
	 VIA Rail
	  	Card Acceptance	  	
			
	 AMJ Campbell
	  	Card Acceptance	  	
			
		  	Movers Program	  	
			
	 Cara Restaurants
	  	Redemption	  	Redemption
			
	 Amazon.ca
	  	Redemption	  	Redemption
			
	 HMV
	  		  	Redemption
			
	 TicketKing
	  	Card Acceptance	  	Redemption

  
 E-2

 SCHEDULE F 

THIRD PARTY SEARS MERCHANTS 
  

			
	 1. IN-STORE MERCHANTS

	NAME OF MERCHANT
		
	1.	  	841121 Alberta Ltd. (Hearing Aid Centres)
		
	2.	  	Community Hearing Support (Hearing Aid Centres)
		
	3.	  	H & R Block Canada Inc. (Income Tax Services)
		
	4.	  	Pat Bisceglia (Law Offices)
		
	5.	  	Cole Vision Canada Inc. (Optical Centres)
		
	6.	  	Gestion Centrevision Inc. (Optical Centres)
		
	7.	  	La Carterie Ltd. (Paper Shops)
		
	8.	  	CPI Corp. (Portrait Studios)
		
	9.	  	3781216 Canada Inc. (Photography Studio)
		
	10.	  	Roots Canada Ltd. (Roots Shops)
		
	11.	  	Canada Rewards Ltd. (Souvenir Shops)
		
	12.	  	Rogers Blue Jays Baseball Partnership (Sports Merchandise)
		
	13.	  	468008 Ontario Ltd. (Ticket Centres)
		
	14.	  	Jean Ah-Nim (Ticket Centres)
		
	15.	  	Barakat Ali Merchant (Ticket Centres)
		
	16.	  	Far East Watch Cases Ltd. (Watch Repair)
		
	17.	  	Timeco Watch & Clock Repairs Ltd. (Watch Repair)
		
	18.	  	Westend Watch Repair Ltd. (Watch Repair)

  
 F-1

	1.	IN-STORE MERCHANTS 

  

			
	NAME OF MERCHANT
		
	19.	  	TD Watch Repair Service (Watch Repair)
		
	20.	  	Michel Goudin Bijoutier Inc. (Watch Repair)
		
	21.	  	1410199 Ontario Inc. (Watch Repair)
		
	22.	  	Bijouterie Chateauvert Inc. (Watch Repair)
		
	23.	  	Shine Trading Corporation (Watch Repair)
		
	24.	  	Leos Watch & Jewellery Repair (Watch Repair)
		
	25.	  	M. Robert Watch Repair (Watch Repair)
		
	26.	  	9065-5077 Quebec Inc. (Watch Repair)
		
	27.	  	Nora’s Watch & Jewellery Repair (Watch Repair)
		
	28.	  	G and P Goldsmith (Watch Repair)
		
	29.	  	Dutka Investments Ltd.(Watch Repair)
		
	30.	  	J.D. Watch Repair Ltd. (Watch Repair)
		
	31.	  	1422551 Ontario Inc. (Watch Repair)
		
	32.	  	Tat Ham Tat (Watch Repair)
		
	33.	  	2282232 Manitoba Inc. (Watch Repair)
		
	34.	  	New Time (Watch Repair)
		
	35.	  	Floral Merchandising Services (Floral)
		
	36.	  	Aramark Canada Ltd. (Food Services)
		
	37.	  	Hillbilly Garden Centres (Garden Shops)
		
	38.	  	Ken Hunniford (Garden Shops)

  
 F-2

			
	1.      IN-STORE MERCHANTS
	
	NAME OF MERCHANT
		
	39.	  	Valley Supply Garden Centre (2005) Ltd. (Garden Shops)
		
	40.	  	Creekside Nursery Limited (Garden Shops)
		
	41.	  	Cannor Nurseries (1989) Ltd. (Garden Shops)
		
	42.	  	Lawrence Springwater Farms (Garden Shops)
		
	43.	  	Gardenland Garden Centres Inc. (Garden Shops)
		
	44.	  	M.K. Rittenhouse & Sons Ltd. (Gardening and Outdoor Products)
		
	45.	  	Pierre Belvedere Inc. (Greeting Cards)
		
	46.	  	Premier Salons Ltd. (Hair Care Salons)
		
	47.	  	Joden Holdings Ltd. (Health Food Shops)
		
	48.	  	Formative Health Food Products (Health Food Shops)
		
	49.	  	Claydan Enterprises (North Hill) (Health Food Shops)
		
	50.	  	Formative Health Food Products (Health Food Shops)
		
	51.	  	Nutra Foods Inc. (Health Food Shops)
		
	52.	  	Lloyd Hearing Centres Ltd. (Hearing Aid Centres)
		
	53.	  	2437-5214 Quebec Inc. (Alteration Shop)
		
	54.	  	Krystyna D. Ciepala (Alteration Shop)
		
	55.	  	Ada Topatigh (Alteration Shop)
		
	56.	  	615258 B.C. Ltd. (Alteration Shop)
		
	57.	  	Mikhail Enterprises Ltd. (Alteration Shop)
		
	58.	  	Casual Male Retail Group Inc. (Big & Tall Men’s Clothing)

  
 F-3

			
	1.      IN-STORE MERCHANTS
	
	NAME OF MERCHANT
		
	59.	  	Aviscar Inc. (Corporate) (Car Rental)
		
	60.	  	Rob McIntosh China Inc. (China & Gift Shops)
		
	61.	  	McIntoSh & Watts Ltd. (China & Gift Shops)
		
	62.	  	Lindt Sprungli (Canada) Inc. (Chocolate Shops)
		
	63.	  	Western.Coins.& Stamps Ltd. (Coins & Stamps)
		
	64.	  	Les Galeries Muriel Vanier Inc. (Custom Framing)
		
	65.	  	Dr. Nighat Hussain (Dental Office)
		
	66.	  	Bell Canada (Digital Printing)
		
	67.	  	Aok Driving School Inc. (Driver Training)
		
	68.	  	Daljit Dhillon Enterprises Inc. (Dry Cleaning)
		
	69.	  	Minit Canada Ltd. (Engraved Gifts)

  
 F-4

	2.	LICENSEES OF SEARS TRADEMARKS 

  

			
	TYPE OF LICENSEE
		
	1.	  	Sears Authorized Dealer Stores
		
	2.	  	Sears Catalogue Agents
		
	3.	  	Sears Carpet Cleaners
		
	4.	  	Sears Disaster Restoration
		
	5.	  	Sears Duct Cleaners
		
	6.	  	Sears Fencing
		
	7.	  	Sears Floor Covering Centres
		
	8.	  	Sears Garage Doors
		
	9.	  	Sears Kitchen and Bath
		
	10.	  	Sears Maid Service
		
	11.	  	Sears Security
		
	12.	  	Sears Siding
		
	13.	  	Sears Water
		
	14.	  	Prints by Sears
		
	15.	  	Flowers by Sears
		
	16.	  	Lunetterie Sears (Optical)
		
	17.	  	Sears New Outlook / Family First
		
	18.	  	Automated Fulfillment Systems—Sears Direct Mail
		
	19.	  	Automated Fulfillment Systems—Sears Connect

  
 F-5

	2.	LICENSEES OF SEARS TRADEMARKS 

  

			
	TYPE OF LICENSEE
		
	20.	  	Automated Fulfillment Systems—Silverts
		
	21.	  	Sears Incentives
		
	22.	  	Sears Landscaping Services
		
	23.	  	CPI-POS Portrait Studio
		
	24.	  	McConnell’s Nurseries—Catalogue
		
	25.	  	McConnell’s Nurseries—In store
		
	26.	  	Sears Travel—Global Matrix
		
	27.	  	Sears Drapery Cleaning
		
	28.	  	Sears Drv 1 Training
		
	29.	  	Sears Drv 2 Training
		
	30.	  	Sears Drv 3 Training
		
	31.	  	Sears Electronic Air Cleaner
		
	32.	  	Sears Furnace Cleaning
		
	33.	  	Sears Catering
		
	34.	  	Sears Moving Service
		
	35.	  	Prints by Sears—Kiosk
		
	36.	  	Starbucks at Eatons # 2670
		
	37.	  	Home Security / Securite
		
	38.	  	Security Link Ltd.

  
 F-6

	2.	LICENSEES OF SEARS TRADEMARKS 

  

			
	TYPE OF LICENSEE
		
	39.	  	Cityfone Telecomm. Inc.
		
	40.	  	Pagenet 3204
		
	41.	  	Rogers Cantel Inc.
		
	42.	  	Sears Connect—Internet
		
	43.	  	American Consumer Group
		
	44.	  	Bobley Harman Corp
		
	45.	  	Heritage Collections /QDSI
		
	46.	  	Hickory Farms
		
	47.	  	Direct Marketing Centre Inc.
		
	48.	  	Information Products Co
		
	49.	  	Media Connections
		
	50.	  	Media Solutions Services
		
	51.	  	Media Syndication Group
		
	52.	  	North American Syndicate Group Inc.
		
	53.	  	Rogers Magazine Service
		
	54.	  	Ortega Publishing
		
	55.	  	Time Inc.
		
	56.	  	Trilegiant Corporation
		
	57.	  	TV Supertek Canada Inc.

  
 F-7

	2.	LICENSEES OF SEARS TRADEMARKS 

  

			
	TYPE OF LICENSEE
		
	58.	  	United Promotions Inc.
		
	59.	  	Synapse Group Inc.
		
	60.	  	The Miller Group Inc.
		
	61.	  	Santa Barbara Promotions
		
	62.	  	CDI Computer Dealers Inc.
		
	63.	  	Interior Décor Inc.
		
	64.	  	Popular Music Systems
		
	65.	  	Ship D Media Solution SVC
		
	66.	  	South Klein Marketing Inc.
		
	67.	  	Thomson Education Direct (ICS)
		
	68.	  	Holsted Marketing Inc.

  
 F-8

	3.	CORBEIL LOCATIONS 

  

			
	NAME OF MERCHANT
	1.	  	Corbeil

  
 F-9

 THIRD PARTY NON-SEARS MERCHANTS 

 

	4.	THIRD PARTY NON-SEARS MERCHANTS 

  

			
	NAME OF MERCHANT
		
	1.	  	Kal Tire
		
	2.	  	The National Ballet of Canada
		
	3.	  	Northwest Premier Auto Ltd. o/a Avis Car & Truck Rental
		
	4.	  	Pharmasave Drug Stores
		
	5.	  	Prince Albert Rent A Car
		
	6.	  	Réseau Admission Inc
		
	7.	  	Rogers Publishing Limited
		
	8.	  	Roots Canada Ltd.
		
	9.	  	Royal Winnipeg Ballet
		
	10.	  	Saskatchewan Centre of the Arts
		
	11.	  	Sociésté de la Place des Arts de Montréal
		
	12.	  	Star Choice Communications Inc
		
	13.	  	Via Rail Canada Inc.
		
	14.	  	Choice Hotels Canada
		
	15.	  	Grand Théâtre de Québec
		
	16.	  	Ontario Place Corporation

  
 F-10

	4.	THIRD PARTY NON-SEARS MERCHANTS 

  

			
	NAME OF MERCHANT
		
	17.	  	Petro-Canada
		
	18.	  	Ticketmaster Canada Ltd
		
	19.	  	IBM Canada Ltd. (IBM Direct)
		
	20.	  	Royal Ontario Museum
		
	21.	  	Active Green + Ross
		
	22.	  	AMJ Cambell (Quebec)
		
	23.	  	AMJ—Blue Bins Unlimited
		
	24.	  	Avis Rent A Car (Cendant International) Outside Sears
		
	25.	  	Centre D’auto President (President Tire)
		
	26.	  	The Tire People Inc. #001
		
	27.	  	Carlson Marketing Group - Card Protection Plan
		
	28.	  	Intuit Canada—Internet Tax Products
		
	29.	  	McIntosh & Watts Ltd. (Non-Sears Locations)
		
	30.	  	TicketKing
		
	31.	  	TicketKing Mirvish Enterprises
		
	32.	  	TicketKing Princess of Wales
		
	33.	  	TicketKing Royal Alexandra
		
	34.	  	TicketKing Art Gallery of Ontario
		
	35.	  	TicketKing Royal Winter Fair
		
	36.	  	Cannon Theatre

  
 F-11

	4.	THIRD PARTY NON-SEARS MERCHANTS 

  

			
	NAME OF MERCHANT  

	37.	  	Sunoco # 3249
		
	38.	  	Sunoco # 3312
		
	39.	  	Toronto Downtown Jazz Society
		
	40.	  	Victoria Jazz Society
		
	41.	  	Winnipeg Symphony Orchestra Inc.
		
	42.	  	Proprietary Businesses of Catalogue Agents (except for the catalogue portion of their business)
		
	43.	  	Cantrex Group Members (not using Sears Canada Inc or its Affiliates or Subsidiaries Licensed Trade-marks)

  
 F-12

 SCHEDULE 3.1 
 MANAGEMENT COMMITTEE 
 SEARS REPRESENTATIVES: 

 

	1.	Cathy McConnell 

  

	2.	Ashley Whicher 

  

	3.	Jean-Marc Dallaire 

  

	4.	Al Colman 

  

	5.	Andrew Shippel 

 PURCHASER REPRESENTATIVES:

  

	1.	Bruce Clark 

  

	2.	Scott Laitinen 

  

	3.	Steve Cornell 

  

	4.	Doug Tames 

  

	5.	Jay Adelsberg 

 SCHEDULE 3.5 
 EXECUTIVE COMMITTEE 
 SEARS REPRESENTATIVES: 

 

	1.	Richard Brown 

  

	2.	Ethel Taylor 

  

	3.	David Merkley 

  

	4.	Cathy McConnell 

  

	PURCHASER	REPRESENTATIVES: 

  

	1.	Harry Di Simone 

  

	2.	Bill Wallace 

  

	3.	Rick Taglione 

  

	4.	Bruce Clark 

 SCHEDULE 4.1 
 FORM OF BUSINESS PLAN 
 No later than September 30 of each year, Sears and Purchaser
shall dedicate sufficient personnel and make data available to develop the Business Plan, an annual, or longer if determined by the Management Committee, business plan beginning January 1 of the following year that is needed to deliver the
Program. The Business Plan process provides an opportunity to ensure that Purchaser and Sears are in agreement on key strategies and goals for the relationship and to ensure alignment with corporate goals. The Business Plan provides strategic
direction and is input to the development of the Marketing Plan. The Marketing Plan should be more tactical in nature and created with significantly more detail. To the extent that any part of this Schedule 4.1 is inconsistent with any of the terms
and conditions of the Agreement, those terms and conditions shall prevail. 
 To ensure the proper level of coordination and data analysis
occurs, it is expected that the planning process will begin in mid to late June to ensure a September 30 completion date. 
 The Business
Plan should contain the following components by month, quarter, and full year average and where available broken by portfolio (Sears Proprietary Card and Sears Co-Branded Card) and by key customer segments: 

1. Business Performance—Current Year vs. Plan: 
 – Current Year Forecast vs. Plan (Market P&L format) 
 – Key Metrics will include
the following: 
 Credit and Financial Products Retail 
 – Credit Sales 
 – Credit Share 

– New Accounts by Channel 
 –
Approval Rates 
 – Accounts Receivable Balances 
 – Risk adjusted margin statement 
 – Finance Charge Yield 

– Total Yield 
 – Card Issuance
Volume (including Re-issue volume by type) 
 – Additional Product Introductions 
 – 0% Promotion Activity 
 – 0% Balances 

– Third Party Activity 
 –
Cash/Convenience Check Sales 
 – Cash Sales 
 – Balance Consolidation Activity 
 – Card Registry Enrollments 

– CPP 
 – Sears Card Event marketing
results 

  
 1 

 – Net Sales by major business category 
 – New product category introductions or exits 
 – In-Store payments processed

 – Duplication 
 Major business
unit is defined as Full-Line stores, Off Mall stores and Sears Direct. Hardlines and Softlines are segmented. 
 Hardlines are further
subdivided into Home Appliance, Home Electronics, and Home Improvement. 
 2. Industry Overview: 

– Industry Overview will include: 
 Credit
and Financial Products Retail 
 – Review of current product line up and positioning against existing competitors (including key terms:
pricing, fees, grace period) 
 – Competitive Environment and Additional Product offers, features and promotions 

– Customer Trends / Customer Research 

– New or changing Credit / Retail partner-ships 
 – Technology Assessment 
 – Compared to industry 

– Compared to customer needs 
 –
Retail Product Sales trends (e.g., new product introductions such as plasma TV’s) 
 – Competitor expansions (e.g., Lowes, Walmart,
Hudson’s Bay Company, The Brick, Home De-pot, Canadian Tire, Future Shop, Best Buy, Breault Martineau, Le-ons, Zellers, Ikea expansions) 

– Changes in Competitor Retail Strategy or Marketing 
 3. Strategic Goals and Strategies to Achieve Goals—New strategies or modifications to existing strategies should be developed and goals identified for each strategy. Gap and Opportunity analysis is
performed to determine how existing strategies should be modified and new strategies should be added. 
 – Overview of current business
strategy 
 – Gap/Opportunity Analysis 

  
 2 

 Credit and Financial Products Retail 
 – Additional Product Development 
 – Value Proposition Changes 

– Acquisition Strategy 
 – Portfolio
Management Activities (substitution, repricing) 
 – Retention 
 – Attrition and Cancellation Rates 
 – Current Product Review 

– Product Terms and Structure (CITs) 

– Planned changes that may impact Service Level Agreements 
 – Credit Policy Management Activities 
 – Balance of Sale shifts 

– Language capabilities 
 –
Introduction of new brands or product features with potential Sears Credit Card tie-in 
 – Development of new retail concepts (e.g., Sears
Hardware; Sears Home; and Sears Appliance and Mattress) 
 – Expanded or discontinued product lines 

– Changes to marketing or pricing strategy 

– Plans for then existing retail pro-grams (e.g., Craftsman Club; Welcome Home; New Outlook; Family Firs, Wedding Registry, Baby Registry) and
development of new retail programs 
 – Initial Opportunity Assessments for Proposed Projects/Business Case Development 

– Market Size and Customer Impacts including effect on Retail Sales 
 – Financials and expected returns 
 – Project prioritization and anticipated timing

 4. Resource Requirements and Implementation Plans—The strategy is translated into resource requirements to ensure that the appropriate
commitments are made against the agreed projects and strategies. Resources should be identified to include the categories listed below: 

– Staffing 
 – Funding Mechanisms

 – Capital 
 – Impact on
Systems, IT or other Processes 
 – Point of Sale 
 – Call Centers 
 – Processing 
 – Retail Integration 
 – Project Risk Assessment 

– Complexity/Size considerations 
 –
Timeline 
 – Test Plans 
 –
Milestones (go or no go decisions points) 
 – Rollout Plans 

  
 3 

 5. Profit and Loss Statement—Market P & L format will be used and provide: 

– Year over Year comparisons 
 –
Quarterly pacing 
 – Roll forward of key revenue drivers 
 – Roll forward of key Operating Income drivers 
 6. Accounts Receivable Calculation:

 – Accounts Receivable balance roll-forward schedule will be provided on a product basis. 

7. Portfolio Quality: 
 – Delinquency Rate
(# of Units and $’s) 
 – Projected Bankruptcy Filings (# of Units and $’s) 

– Portfolio quality improvement strategies 

8. Operating Metrics: 
 – Total Accounts
by product 
 – Active Accounts and Average Balance per Active Account 
 – Credit Share 
 – Credit sales 

– Number Active Accounts over total file 

– Retention 
 – Solicitations

 – Approval Rates by channel 

– New Accounts by channel 
 –
Financial Product Enrollments (by business) 
 – Financial Product Ending Members in-force (by business) 

– Financial Product Billed Members in-force (by business) 

  
 4 

							
	 	  	 Sears Proprietary Card
	  	 Sears Co-branded Card
	  	 Total Portfolio

				
	 Ending Balances
	  	Yes	  	Yes	  	Yes
				
	 Average Balances
	  	Yes	  	Yes	  	Yes
				
	 Finance Charge Yield
	  	Yes	  	Yes	  	Yes
				
	 Total Portfolio Yield
	  	Yes	  	Yes	  	Yes
				
	 Funding Rate
	  	N/A	  	N/A	  	Yes
				
	 Net Interest Margin
	  	Yes	  	Yes	  	Yes
				
	 Net Credit Losses—%
	  	Yes	  	Yes	  	Yes
				
	 Delinquency Rates
	  	Yes	  	Yes	  	Yes
				
	 BK Filings
	  	Yes	  	Yes	  	Yes
				
	 Prime Rate
	  	N/A	  	N/A	  	Yes
				
	 Credit Sales
	  	Yes	  	Yes	  	Yes
				
	 Roll Rates
	  	Yes	  	Yes	  	Yes

  
 5 

			
	 Operations Metrics
	  	 Risk Metrics

		  	Contractual Charge-off $ - Sears Proprietary Card
		  	Contractual Charge-off $ - Sears Co-branded Card
		  	Contractual Charge-off # - Sears Proprietary Card
		  	Contractual Charge-off # - Sears Co-branded Card
		  	Bankruptcy Charge-off $ - Sears Proprietary Card
		
	Call Volume	  	Bankruptcy Charge-off $ - Sears Co-branded Card
		
	Cost per Call	  	Bankruptcy Charge-off # - Sears Proprietary Card
		
	Average Handle Time	  	Bankruptcy Charge-off # - Sears Co-branded Card
		
	Average Speed of Answer	  	Bankruptcy filings $ - Sears Proprietary Card
		
	Abandon Call Rate	  	Bankruptcy filings $ - Sears Co-branded Card
		
	Cards Embossed	  	Bankruptcy filings # - Sears Proprietary Card
		
	Cost per Card	  	Bankruptcy filings # - Sears Co-branded Card
		
	Documents Mailed	  	 Balance Summary by FICO
 -        Total Portfolio

	Cost per Document	  	
		  	 -        Sears Proprietary Card

	Remittances Processed	  	
		  	 -        Sears Co-branded Card

	Cost per Remittance	  	
		  	LOC Summary by FICO
	Total Active Accounts	  	 -        Total Portfolio

		
	Cost per Active Account	  	 -        Sears Proprietary Card

		
	Direct Mail Pieces	  	 -        Sears Co-branded Card

		
	Response Rate	  	OTB Summary by FICO
		  	 -        Total Portfolio

		
	New Accounts	  	
		
		  	 -        Sears Proprietary Card

		
	Total Approval Rate	  	
		
		  	 -        Sears Co-branded Card

		
	Direct Mail Approval Rate	  	
		
		  	OTB per Account and % of Limit
	POS New Acct Approval Rate	  	 -        Total Portfolio

		
	Authorization Rates	  	 -        Sears Proprietary Card

		
	Balance Consolidation Solicitations	  	 -        Sears Co-branded Card

		
	Balance Consolidation Response Rates	  	 Account Closures
 (voluntary
and involuntary)

  
 6 

 The Parties agree that they shall make good faith efforts to conform the above metrics where reasonable and
practicable to the Purchaser’s table of metrics. 

  
 7 

 9. Example of Market P & L: 
 Note: Market P & L not to include operating expenses 
  

					
		  	Market P & L	  	
		 	
		  	 	  	
		 	
		  	 	  	
		 	
		  	 	  	
		 	
		  	 	  	
		  	EBIT	  	
		  	 	  	

 In all cases, this form of Business Plan as well as additional metrics may be added as agreed by both parties.

  
 8 

 SCHEDULE 4.2 
 FORM OF MARKETING PLAN 
 For each Program Period, Sears and Purchaser shall dedicate
sufficient personnel and make data available to jointly develop the Marketing Plan. The parties shall give special consideration to the program considerations outlined in Section 3.2 of the Program Agreement. The Marketing Plan for each Program
Period shall be approved by the Management Committee no later than three months prior to the start of such Program Period. Sears and Purchaser shall continue to conduct their activities in conformity with the existing marketing practices, as
appropriately adjusted for seasonality, until the new Marketing Plan is adopted and such existing marketing practices are superseded. The fact that an item, which is in the sole control of one party under the terms of the Program Agreement, shall be
discussed in formulating the Marketing Plan does not imply that such an item shall be controlled by the parties jointly or by the Management Committee; rather, discussion of all issues (even those in the sole control of one party) is important in
formulating the Marketing Plan. To the extent that this Schedule 4.2 is inconsistent with the terms and conditions of the Agreement, those terms and conditions shall prevail. 
 To ensure alignment, integration and execution, it is critical that both parties review the following: 
 Overview 
 Retail Overview 
 Sears agrees to review with Purchaser major retail plans and performance as relates to the Program, including the Marketing Plan. Sears will provide and discuss with Purchaser, through the Management
Committee, details of Sears retail business to assist the Management Committee in development of the Marketing Plan, including retail goals and objectives, marketing related to credit and financial programs, operations and store changes, sales
performance, and retail advertising and promotional calendars. 
 Marketing Related to Credit and Financial Programs 

Changes to Credit or Financial Product Advertising 
 Credit Program Marketing Goals 
 Review overall goals for the Program and strategies to achieve
them. 
 Credit Product Positioning and Overview 
 Review overall brand positioning and product positioning for all Sears Credit Cards. 

Acquisitions 
 Metrics 

  
 1 

 For the Program Period, Sears and Purchaser will review marketing performance and develop Credit Card and
Financial Product goals by channel and by product. Specifically, the key metrics that need to be agreed upon are: 
  

	•	 	 Credit Card share (based on Sears sales data) and Sears Credit Card sales 

 

	•	 	 Authorization rates 

  

	•	 	 Credit Limit Assignment 

  

	•	 	 Referral rates 

  

	•	 	 % of applications that are opened as Sears Proprietary Card 

 

	•	 	 Financial Products cross sell penetration 

  

	•	 	 Sears Sales Goals (internal purchases on Sears Co-Branded Cards will be differentiated from external purchases) by product

  

	•	 	 Approval Rate Goals by product 

  

	•	 	 Balance Goals by product 

  

	•	 	 New Account Goals by product 

  

	•	 	 Cross Sell penetration of Financial Products 

 Sears and Purchaser agree to use the existing reports or develop new reports as needed to ensure the key metrics are performing vs. Marketing Plan expectations. 

Point of Sale 
 Franchise Goals 

(including Full Line, Off Mall, Dealer, Corbeil) 
  

	•	 	 Regional 

  

	•	 	 Districts 

  

	•	 	 Sears Credit Card Training Programs: 

  

	•	 	 Format/Focus, Curricula 

  

	•	 	 Budget 

  

	•	 	 Programs 

  

	•	 	 Calendar 

  

	•	 	 Collateral/materials 

Sears Card Event Promotions 
  

	•	Seasonal and Promotional Calendar, by: 

  

	•	 	 Format 

  

	•	 	 Category 

  

	•	 	 Brand 

  

	•	 	 Region, as appropriate 

  

	•	 	 Credit Card Promotions/Offers Overview: 

  

	•	 	 Type 

  

	•	 	 Timing/Frequency 

  

	•	 	 Advertising & Promotional Spend 

  

	 ̈	Media 

  
 2 

	•	 	 Visual Thematics 

Disclosures 
 Ordinary course timing of
Disclosure change-outs will be agreed upon. 
 In-store Application/Screening Process 
 Any proposed changes to the manner in which new accounts are sourced (e.g., how the offer or nature of offer is presented to the customer, any changes to the POS screens used to promote credit, etc.) at
POS will be reviewed. Any proposed changes to the existing process are subject to Sears approval which shall not be unreasonably withheld. 

Direct Mail- New Account Acquisitions 

Marketing Calendar 
 The following items will
be established for the Program Period: 
  

	•	 	 The number of mail programs 

  

	•	 	 The volume of each mail program 

  

	•	 	 Specific timing of mail programs 

  

	•	 	 Coordination with Sears retail mail offers 

 Credit Direct Mail Offer Composition 
 Product Mix (Sears Co-Branded Card vs. Sears Proprietary
Card) 
 Sears Proprietary Card 
 Sears
Co-Branded Card type (Gold, Platinum, etc. if offered) 
 Secured Card (if offered) 
 Prepaid Card (if offered) 
 Offer Type 

 

	•	 	 Pre-approved or Non pre-screened 

  

	•	 	 Substitution 

  

	•	 	 Other Financial Products 

APRs to be offered (detail by product) 
 Credit
Limit (detail by product) 
 Fee to be charged 
  

	•	 	 Annual fees 

  

	•	 	 Over-limit fees 

 Target
Segments 
 Alternate Channels (Outbound Telemarketing and Web) 

  
 3 

 Key items within the plan include: 

 

	•	 	 Outbound telemarketing 

  

	•	 	 Marketing on the Web 

  

	•	 	 sears.ca, and other Sears websites 

  

	•	 	 Partner Merchant websites. 

  

	•	 	 Integration into the purchasers web site 

  

	•	 	 E-mail solicitation 

Portfolio Management 
 Metrics 

Key metrics include: 
  

	•	 	 Expected Issuance and Re-issue Account volumes 

  

	•	 	 Account substitution volumes 

  

	•	 	 Account volumes to be re-priced and terms changes 

  

	•	 	 Account retention targets 

  

	•	 	 Retention save rates 

  

	•	 	 Customer Satisfaction scores related to the Retention group 

 

	•	 	 Rewards enrollments 

  

	•	 	 Statement Insert volumes 

  

	•	 	 Criteria used to determine if attempts should be made to retain customer 

 

	•	 	 Criteria used to determine what Retention tactic(s) will be used for each customer 

Card Issuance/Initial Activation 
 Key items
within the plan include: 
  

	•	 	 Credit Card carrier design 

  

	•	 	 Products/Services to be marketed via the Credit Card carrier 

 

	•	 	 Standards for number of days to get new plastics to customer, as set forth in [Exhibit X—Sears to provide] 

 

	•	 	 Criteria for Activation—including in-Store procedures 

 

	•	 	 Call to Activate strategy—services/products promoted, outbound calls, VRU and scripting of call 

 

	•	 	 Call to Activate service (average speed of answer/length of call/customer satisfaction with call) 

 

	•	 	 Strategies/Promotional offers to stimulate activation 

 

	•	 	 Which segments should activation strategies be focused on 

 

	•	 	 Procedures for handling returned new plastics 

 Usage Promotions and Offers 
 Key items within the plan include: 

 

	•	 	 Marketing spend per booked account 

  

	•	 	 Promotions/Tactics to be used to encourage usage 

  
 4 

	•	 	 Mix (volume and frequency) of usage tactics 

  

	•	 	 Mix of Sears versus non-Sears usage promotions 

  

	•	 	 Marketing collateral 

  

	•	 	 segments/customers targeted with usage offers 

  

	•	 	 Performance of various promotions/tactics—with a focus on which offers drive incremental sales at Sears 

Substitution 
 Key items within the plan
include: 
  

	•	 	 Volumes and Timing of Substitutions 

  

	•	 	 Opt-out strategy 

  

	•	 	 Communication/Marketing collateral 

  

	•	 	 Terms of offer (e.g., product and price) 

 Pricing, Credit Line and other Terms 
 Key items within the plan include: 

 

	•	 	 Overall pricing strategy: 

  

	•	 	 Fixed/Variable (including index method) 

  

	•	 	 Strategy/rationale for rate increases and decreases 

  

	•	 	 Communication of rate changes 

  

	•	 	 Testing plans for pricing changes 

  

	•	 	 Changes in other terms such as late fees, grace periods, etc. 

 

	•	 	 Content, frequency and timing of “Change in Terms” initiatives 

 

	•	 	 APR distribution by key segment and by product 

  

	•	 	 Overall Credit Line assignment strategy by customer segment, product and channel 

 

	•	 	 Effect on open to buy for in store purchase needs to be clearly understood 

 

	•	 	 Effect on attrition and Account closures 

 Convenience Checks and Balance Transfers 
 Key items within the plan include: 

 

	•	 	 Balance Transfer (“BT”), including impact on Open to Buy available for Merchandise purchases 

 

	•	 	 Volume and frequency of BT mailings 

  

	•	 	 Segments to be targeted with BT offers 

  

	•	 	 Pricing and other terms of offer 

  

	•	 	 Channels to be used to market offers 

 Retention 
 Key items within the plan include: 

 

	•	 	 Retention Tactics 

  

	•	 	 Reasons for closing account given by customer 

  
 5 

	•	 	 Criteria used to determine if attempts should be made to retain customer 

 

	•	 	 Criteria used to determine what Retention tactic(s) will be used for each customer 

Statement Insert Channel/Sears Billing Messages 

Key items within the plan include: 
  

	•	 	 Insert Strategy 

  

	•	 	 Offer Calendar/Matrix 

  

	•	 	 Channel Results 

  

	•	 	 Types of Offers—Total number of offers included in billing statement 

 

	•	 	 Prioritization of offers 

  

	•	 	 Review process to sign-off on all inserts 

  

	•	 	 Sears Billing Messages Strategy 

  

	•	 	 Types of messages/message content 

  

	•	 	 Criteria for specific messages (i.e., who gets what message) 

 

	•	 	 Focus on messages that drive retail sales 

  

	•	 	 Billing Statement Layout/Design 

  

	•	 	 Use of 2nd page—content. 

 Inbound Customer Service Calls 
 Key items within the plan include: 

 

	•	 	 Cross Sell efforts by product type 

  

	•	 	 Rewards 

  

	•	 	 Balance Transfers 

  

	•	 	 Financial Products 

  

	•	 	 Notification of Sears Card Events (integration with Sears Retail calendar, drive times) 

 

	•	 	 Goals for each of the above items 

  

	•	 	 # of Accounts sold 

  

	•	 	 closure rates 

  

	•	 	 # of Accounts notified 

  

	•	 	 Test plans 

 Other

 Integration of Program marketing efforts with Sears marketing objectives 
 Special Credit Card Programs 
 Plans for changing or testing Special Credit Card Programs will be
discussed by Sears and Purchaser. These include: 
  

	•	 	 Zero Percent Financing 

  

	•	 	 POS Incentives 

  

	•	 	 Sears Card Events 

  

	•	 	 Loyalty Initiatives 

  
 6 

 Customer Value Proposition 
 Key items within the plan include: 
  

	•	 	 Partners and related offers 

  

	•	 	 Redemption Thresholds 

  

	•	 	 Cost of enrollment 

  

	•	 	 Fulfillment procedures 

  

	•	 	 Marketing collateral/communications 

  

	•	 	 Tests and Promotions 

  

	•	 	 Expiration of Points 

 In
addition, the Management Committee will have approval over the following (such consent will not be unreasonably withheld): 
 Approval of Rewards
Partners 
 Approval of rewards incentives 
 New Product Development 
 Key items within the plan include: 

 

	•	 	 Agreement on test plan for the Program Period 

  

	•	 	 Description of products, concepts, etc. 

  

	•	 	 Integration with Retail 

  

	•	 	 Funding 

  

	•	 	 Test structure and design 

  

	•	 	 Duration of test 

  

	•	 	 Test market selection 

  

	•	 	 Test size 

  

	•	 	 Test vs. Control 

  

	•	 	 Expansion (success) criteria 

 Market Research 
 Research studies may include: 

 

	•	 	 Usage and Satisfaction Tracking studies 

  

	•	 	 Card Association Peer ranking study 

  

	•	 	 Customer Service Satisfaction study 

  

	•	 	 Monthly CSAT Tracking study 

  

	•	 	 Ad hoc research projects 

Co Op Advertising 
 Sears Retail Alternate
Channels 
  

	•	 	 Credit Product Positioning/Placement (web, inserts, tip-ins, co-op advertising etc.) 

 

	•	 	 Partner Merchant Programs 

  

	•	 	 Channel Results 

  
 7 

 A Marketing Budget prepared in accordance with Section 4.2(d) of the Agreement shall be included.

  
 8 

 SCHEDULE 5.1 
 MORE FAVOURED PROGRAM PROVISION 
 The Purchaser agrees that the Program (other than those
set forth in Section 7.1 hereto), including the practices set forth in the Program Plans and Policies, shall be no less beneficial in the aggregate to the Cardholders, Financial Products Customers or Sears than the provisions of any of
Purchaser’s other (i) retail proprietary card programs or (ii) General Purpose Credit Card programs that are co-branded with another retailer, in each case that is offered to customers of such retailers in the Licensed Territory
(provided that in determining the foregoing, the parties may consider any retailer-funded (in contrast to Purchaser-funded) benefit to customers or Purchaser) unless (i) Purchaser’s position on the issue is dictated by Law and (ii) it
adopts, and certifies to Sears that it has adopted, the same position with respect to each of its other proprietary card programs and General Purpose Credit Card programs that are similarly impacted by such Law or to which such Law could similarly
be applied (any such more beneficial program, the “More Favoured Program”). At Sears’ election, Purchaser agrees to cause the Program, including any or all of the Program Plans and Policies, to be amended as promptly as
practicable pursuant to Section 3.3 to provide Cardholders, Financial Product Customers or Sears, as applicable, with the benefit of the more beneficial terms of the More Favoured Program. Any dispute under this Section 5.1 shall be
subject to the escalation provisions set forth in Section 14.22. 

 SCHEDULE 5.4 
 ACCOUNT TERMS 
  

					
	 Card Terms
	  	 Sears Card
	  	 Sears MasterCard

	 APR
	  	28.8% per annum	  	18.9 % per annum
	 Penalty APR
	  	N/A	  	N/A
	 Minimum Payment Required
	  	 The greater of 3% of the opening balance

or C$10
	  	 The greater of 3% of the opening balance

or C$10

	 Minimum Finance Charges
	  	N/A	  	N/A
	 Balance Computation
	  	Average Daily Cycle Balance	  	Average Daily Cycle Balance
	 Grace Period
	  	 25 days from cycle closing
 depending on calendar month
	  	 21 days from cycle closing
 depending on calendar month

	 Annual Fee
	  	None	  	None
	 Late Fees
	  	None	  	None
	 Maintenance of Inactive Account Fee
	  	None	  	None
	 Over-Limit Fee
	  	None	  	C$10
	 Return Check (NSF) Fee
	  	C$25	  	C$25
	 Credit Balance Administration Fee
	  	C$25	  	C$25
	 Statement Reprint Fee
	  	C$2	  	C$2
	 Reward Program Feature
	  	Sears Club Program	  	Sears Colours Program
			
	 In-Store Benefits
	  		  	
	 In-Store Payments
	  	Yes	  	Yes
	 Return without a Receipt
	  	Yes	  	Yes
	 Credit Card Specific Events
	  	Yes	  	Yes
	 Account # Lookup
	  	Yes	  	Yes
			
	 Deferred Billing Programs
	  		  	
	 Length of Promotion Period
	  	Varies	  	N/A
	 Administration Fee
	  	Variable	  	N/A
	 Retroactive Finance Charge Accrual
	  	No	  	N/A

 SCHEDULE 6.2 
 LICENSED PURCHASER MARKS 
  
 

 

 SCHEDULE 7.1 
 CERTAIN PURCHASER PAYMENTS 
  

	1.	Financial Service Fees 

  

	 	(a)	New Accounts 

 Purchaser
will pay Sears $10 for arranging for the issuance of each new approved and activated Account where the Account Application was forwarded by or through any means (including electronically, paper, or telephone) by Sears, its Affiliates or Third Party
Sears Merchants to Purchaser or its Affiliates. At the end of each month, Purchaser shall calculate and make this payment promptly, consistent with its other similarly situated programs, but in any event, within 30 days following each month end.

  

	 	(b)	Credit Sales 

 Purchaser
will pay Sears an amount equal to 165 basis points of sales (less returns) charged to a Sears Credit Card in consideration for the acceptance of the Sears Credit Card as consideration for the goods and services supplied by Sears or Partner Merchants
to the Cardholder. At the end of each month, Purchaser shall calculate and make this payment promptly, consistent with its other similarly situated programs, but in any event, within 30 days following each month end. 

 

	 	(c)	Financial Products 

Purchaser will pay Sears 10% of the net revenues collected from Financial Products. At the end of each month, Purchaser shall calculate
and make this payment promptly, consistent with its other similarly situated programs, but in any event, within 30 days following each month end. 
  

	2.	Additional Sears Card Events 

 Sears Card Events promotional and marketing costs: consistent with Sears current practice. 

 SCHEDULE 7.2 
 IN-STORE PAYMENTS 
 In-Store Payments pursuant to Section 7.2 of the Agreement shall
be equal to (i) $1 multiplied by (ii) the number of In-Store Payments accepted by Sears, its Affiliates and Third Party Sears Merchants during such month. 

 SCHEDULE 7.3 
 OVER-LIMIT FEES 
 1. Purchaser shall not charge any over-limit fees on the Sears
Proprietary Card. 
 2. Purchaser agrees that, with respect to the Sears Co-Branded Card: 

(a) it shall not impose charges for over-limit fees with respect to any over-limit balances of a Cardholder that represent the following
percentage of aggregate applicable limit of such Cardholder 
  

					
	 Credit Line
	  	Overlimit Percentage	 
	 $5,500 - $6,499
	  	 	5	% 
	 $6,500 - $7,499
	  	 	4	% 
	 $7,500 - $9,999
	  	 	3	% 
	 $10,000 and over
	  	 	2	% 

 (b) the over-limit fees must be competitive (i.e. within the range charged by leading financial services
providers in Canada); and 
 (c) it shall waive over-limit fees with respect to any Cardholder claim that the over-limit balance
resulted directly from a purchase at Sears. 

 SCHEDULE 7.4 
 DISCOVER 
 All the obligations of the Canadian Discover Card Merchant Acceptance Services
letter dated December 19, 1990 

 SCHEDULE 7.5 
 DEFERRED FINANCING 
 Purchaser will offer Sears Deferred Financing on the following terms:

 For each Program year (defined for this purpose as each subsequent 12 month period following the Effective Date), Sears can utilize Deferred
Financing on the following terms: 
  

			
	 Average Daily Accounts Receivable

in Deferred Financing for Program year
	  	 Cost to Sears

	 Any amount less than $600 million
	  	No Cost
		
	 Amounts greater than $600 million up to $800 million
	  	Sears pays Purchaser 7%
		
	 Amounts greater than $800 million up to $1.1 billion
	  	Sears pays Purchaser 11%
		
	 Amounts greater than $1.1 billion
	  	Sears pays Purchaser its average Program Account finance charge yield percentage less average Program credit loss percentage (both percentages shall exclude the impact of Program
Deferred Financing Accounts Receivable in determining such percentages)

 In the event that the Average Daily Accounts Receivable in Deferred Financing for a Program year is less than $600
million, Purchaser shall pay to Sears an amount equal to 7% times the amount that such Deferred Financing is less than $600 million (the “Deferred Compensation” provided that: 

 

	 	(i)	if the Program net credit sales in Stores are less than $4.15 billion in any Program year, Sears shall use the Deferred Compensation to fund marketing programs in the
following Program year designed to increase net credit sales in Stores. Sears and Purchaser agree that funding of these programs will be incremental to funding Sears would have otherwise spent on marketing efforts related to the Program. If Program
net credit sales in Stores are less than $4.15 billion for two consecutive Program years, Purchaser will have no obligations to pay any further Deferred Compensation. 

 

	 	(ii)	If the ratio of Program interest-bearing Accounts Receivable (excluding any Deferred Financing Accounts Receivable) to total Program Accounts Receivable (excluding any
Deferred Financing Accounts Receivable) is less than 75% in any Program year, Sears will repay the Deferred Compensation it received for that year in equal installments over the next four calendar quarters. 

  
 1 

 With respect to the terms offered above the following condition shall apply: 

The types of Deferred Financing can only be the types historically offered including programs substantially similar to “Deferred Billing”,
“No Money Down” and “Installment Billing”, but not including programs substantially similar to “Buy Anything, Pay Nothing”. Sears shall have the right to offer Deferred Financing of any duration it chooses so long as
the average duration of all Deferred Financing does not exceed 12 months (for purposes of this calculation the duration of deferred installment billing shall be the average life of the related payment stream). If Sears wishes to otherwise materially
change the Deferred Financing offers beyond those types historically offered or exceed an average duration of 12 months, the Management Committee must approve such change which approval may include changes to the “Cost to Sears” indicated
above as a condition to such approval. 
 Tracking/Payments: 
 The amount of Average Daily Accounts Receivable will be tracked for each quarter of a Program year. The amount owed by Sears or the Purchaser for the Program year to date shall be calculated at the end of
each quarter. That amount will be trued-up each quarter vs. amounts already paid in prior quarters of that Program year with Sears or Purchaser paying the other the net amount of such true-up. The end of the fourth quarter of any Program year will
represent the final true-up. 
 At Termination: 
 At termination of the Program, Sears shall continue to pay to Purchaser in the following amounts until the Portfolio is repurchased: 

 

			
	 Daily Accounts Receivable
 in Deferred Financing each day
	  	 Cost to Sears

	 Any amount up to $600 million
	  	No Cost
		
	 Amounts greater than $600 million up to $800 million
	  	0.0192% (Note: 7%/365)
		
	 Amounts greater than $800 million Up to $1 billion
	  	0.0274% (Note: 11%/365)
		
	 Amounts greater than $1 billion
	  	TBD (Note: Sears pays Purchaser its average Program Account finance charge yield percentage less average Program credit loss percentage (both percentages shall exclude the impact
of Program Deferred Financing Accounts Receivable in determining such percentages)/365)

 For purposes of clarity, Purchaser shall have no obligations to pay any Deferred Compensation after termination of the
Program. 

  
 2 

 SCHEDULE 7.6 
 MEMBERSHIP REWARDS—COMMITMENT 
 Within 6 months of the Effective Date, except for
sales on deferred financing, Sears will offer to the customer no less than 2%, redemption value in Sears stores for every dollar of sales through a channel branded with the “Sears” trademark and no less than 1% redemption value in Sears
stores for every dollar of sales through every other channel, in each case in Canada. 

 SCHEDULE 13.5(C) 

APPRAISAL ASSUMPTIONS 

Fair Market Value 
  

	 	1.	Appraisal shall assume an ongoing relationship with Sears under the terms of the Program Related Agreements; 

 

	 	2.	Appraisal shall include valuation for Sears Repurchase Assets (including Additional Products); 

 

	 	3.	Appraisal shall assume a sale of the business on an arm’s length basis to a bankcard issuer with sufficient funding capacity and capital to own and operate the
business and perform under the Program Related Agreements; and 

  

	 	4.	Appraisal shall be based on a Net Present Value Calculation 

 Scheduled Repurchase Price 
 See attached tableCredit Agreement

 Exhibit 4.2 
 Execution Version 
 CREDIT AGREEMENT 

Dated as of September 10, 2010 
 among 
 SEARS CANADA INC., 

as Borrower, 
 and

 THE LENDERS NAMED HEREIN, 
 and 
 THE L/C ISSUING BANK NAMED HEREIN, 

and 
 WELLS
FARGO CAPITAL FINANCE CORPORATION CANADA, 
 as Administrative Agent, Co-Collateral Agent and Swingline Lender 

and 
 GE
CANADA FINANCE HOLDING COMPANY  
 as Co-Collateral Agent 

and 
 GE
CANADA FINANCE HOLDING COMPANY, 
 as Documentation Agent 

and 
 CIBC
ASSET-BASED LENDING INC. 
 BANK OF MONTREAL 
 as Co-Syndication Agents 
 and 

WELLS FARGO CAPITAL FINANCE CORPORATION CANADA,  
 GE CAPITAL MARKETS (CANADA) LIMITED and GE CAPITAL MARKETS, INC. 
 CIBC
ASSET-BASED LENDING INC. 
 BMO CAPITAL MARKETS  

as Joint Lead Arrangers and Bookrunners 

 TABLE OF CONTENTS 

 

					
	 	  	Page	 
		
	ARTICLE I	  			
		
	DEFINITIONS AND ACCOUNTING TERMS	  			
		
	 SECTION 1.01. Certain Defined Terms
	  	 	1	  
	 SECTION 1.02. Computation of Time Periods
	  	 	30	  
	 SECTION 1.03. Accounting Terms
	  	 	30	  
	 SECTION 1.04. Other Interpretive Provisions
	  	 	30	  
		
	ARTICLE II	  			
		
	AMOUNTS AND TERMS OF THE ADVANCES	  			
		
	 SECTION 2.01. The Revolving Advances
	  	 	31	  
	 SECTION 2.02. Making the Revolving Advances
	  	 	31	  
	 SECTION 2.03. The Swingline Advances
	  	 	32	  
	 SECTION 2.04. Making the Swingline Advances
	  	 	33	  
	 SECTION 2.05. Fees
	  	 	34	  
	 SECTION 2.06. Optional Termination or Reduction of the Commitments
	  	 	34	  
	 SECTION 2.07. Repayment of Advances
	  	 	34	  
	 SECTION 2.08. Interest on Advances
	  	 	34	  
	 SECTION 2.09. Interest Rate Determination
	  	 	36	  
	 SECTION 2.10. Optional Conversion of Revolving Advances
	  	 	36	  
	 SECTION 2.11. Optional and Mandatory Prepayments of Advances
	  	 	37	  
	 SECTION 2.12. Increased Costs
	  	 	37	  
	 SECTION 2.13. Illegality
	  	 	38	  
	 SECTION 2.14. Payments and Computations
	  	 	38	  
	 SECTION 2.15. Taxes
	  	 	39	  
	 SECTION 2.16. Sharing of Payments, Etc.
	  	 	41	  
	 SECTION 2.17. Use of Proceeds of Advances
	  	 	41	  
	 SECTION 2.18. Increase in Commitments
	  	 	41	  
	 SECTION 2.19. Permitted Overadvances
	  	 	42	  
		
	ARTICLE III	  			
		
	AMOUNT AND TERMS OF THE LETTERS OF CREDIT	  			
		
	 SECTION 3.01. L/C Commitment
	  	 	43	  
	 SECTION 3.02. Procedure for Issuance of Letter of Credit
	  	 	43	  
	 SECTION 3.03. Fees and Other Charges
	  	 	44	  
	 SECTION 3.04. Letter of Credit Participations
	  	 	44	  
	 SECTION 3.05. Reimbursement Obligation of the Borrower
	  	 	45	  
	 SECTION 3.06. Obligations Absolute
	  	 	45	  
	 SECTION 3.07. Letter of Credit Payments
	  	 	46	  
	 SECTION 3.08. Applications
	  	 	46	  
	 SECTION 3.09. Use of Letters of Credit
	  	 	46	  
	 SECTION 3.10. Currency Equivalents Generally
	  	 	46	  

  
 i 

					
		
	ARTICLE IV	  			
		
	CONDITIONS TO EFFECTIVENESS	  			
		
	 SECTION 4.01. Conditions Precedent to Effectiveness
	  	 	46	  
	 SECTION 4.02. Conditions Precedent to Initial Extension of Credit
	  	 	48	  
	 SECTION 4.03. Conditions Precedent to Each Extension of Credit
	  	 	49	  
	 SECTION 4.04. Effective Date
	  	 	49	  
		
	ARTICLE V	  			
		
	REPRESENTATIONS AND WARRANTIES	  			
		
	 SECTION 5.01. Representations and Warranties of the Borrower
	  	 	49	  
		
	ARTICLE VI	  			
		
	COVENANTS	  			
		
	 SECTION 6.01. Affirmative Covenants
	  	 	52	  
	 SECTION 6.02. Negative Covenants
	  	 	60	  
	 SECTION 6.03. Financial Covenant
	  	 	63	  
		
	ARTICLE VII	  			
		
	EVENTS OF DEFAULT	  			
		
	 SECTION 7.01. Events of Default
	  	 	64	  
		
	ARTICLE VIII	  			
		
	THE AGENT	  			
		
	 SECTION 8.01. Appointment
	  	 	66	  
	 SECTION 8.02. Delegation of Duties
	  	 	66	  
	 SECTION 8.03. Exculpatory Provisions
	  	 	66	  
	 SECTION 8.04. Reliance by Agent
	  	 	66	  
	 SECTION 8.05. Notice of Default
	  	 	67	  
	 SECTION 8.06. Non-Reliance on Agents and Other Lenders
	  	 	67	  
	 SECTION 8.07. Reports and Financial Statements
	  	 	67	  
	 SECTION 8.08. Indemnification
	  	 	68	  
	 SECTION 8.09. Agent in Its Individual Capacity
	  	 	68	  
	 SECTION 8.10. Successor Agent
	  	 	69	  
	 SECTION 8.11. Documentation Agent and Syndication Agent
	  	 	69	  
	 SECTION 8.12. Defaulting Lenders
	  	 	69	  
	 SECTION 8.13. Control Co-Collateral Agent as Fondé de Pouvoir
	  	 	70	  
		
	ARTICLE IX	  			
		
	MISCELLANEOUS	  			
		
	 SECTION 9.01. Amendments, Etc.
	  	 	70	  
	 SECTION 9.02. Notices, Etc.
	  	 	71	  
	 SECTION 9.03. No Waiver; Remedies
	  	 	72	  
	 SECTION 9.04. Costs and Expenses
	  	 	72	  
	 SECTION 9.05. Right of Set-off
	  	 	73	  
	 SECTION 9.06. Binding Effect; Effectiveness
	  	 	73	  
	 SECTION 9.07. Assignments and Participations
	  	 	74	  
	 SECTION 9.08. Confidentiality
	  	 	75	  

  
 ii 

					
	 SECTION 9.09. Governing Law
	  	 	76	  
	 SECTION 9.10. Execution in Counterparts
	  	 	76	  
	 SECTION 9.11. Jurisdiction, Etc.
	  	 	76	  
	 SECTION 9.12. WAIVER OF JURY TRIAL
	  	 	77	  
	 SECTION 9.13. Release of Collateral or Guarantee Obligation
	  	 	77	  
	 SECTION 9.14. Proceeds of Crime Act
	  	 	77	  
	 SECTION 9.15. Integration
	  	 	77	  
	 SECTION 9.16. Replacement of Lenders
	  	 	77	  
	 SECTION 9.17. No Advisory or Fiduciary Capacity
	  	 	78	  
	 SECTION 9.18. Press Releases
	  	 	79	  
	 SECTION 9.19. Judgment Currency
	  	 	79	  
	 SECTION 9.20. Security for Money Borrowed
	  	 	80	  
	 SECTION 9.21. Language
	  	 	80	  

  
 iii

			
	SCHEDULES	  	
		
	Schedule IA	  	Pricing Grid
		
	Schedule 1.01	  	Lenders; Commitments
		
	Schedule 5.01(l)	  	Canadian Pension Plans
		
	Schedule 5.01(n)	  	PPSA Filing Jurisdictions
		
	Schedule 5.01(r)	  	Labor Matters
		
	Schedule 6.01(j)	  	Financial and Collateral Reports
		
	Schedule 6.01(m)(i)(B)	  	Blocked Account Banks
		
	Schedule 6.02(k)(ii)                	  	Investment Policy
		
	EXHIBITS	  	
		
	Exhibit A	  	Form of Notice of Borrowing
		
	Exhibit B	  	Form of Assignment and Acceptance
		
	Exhibit C	  	Form of Borrowing Base Certificate
		
	Exhibit D	  	Form of Guarantee and Collateral Agreement
		
	Exhibit E	  	Form of Credit Card Notification
		
	Exhibit F	  	Form of Customs Broker Agreement
		
	Exhibit G	  	Form of Compliance Certificate
		
	Exhibit H	  	Form of Co-Collateral Agent Rights Letter

  
 iv 

 CREDIT AGREEMENT (this “Agreement”) dated as of September 10, 2010,
among SEARS CANADA INC., a corporation organized under the federal laws of Canada (the “Borrower”), the banks, financial institutions and other institutional lenders listed on the signature pages hereof (the
“Lenders”), the L/C ISSUING BANK party hereto, WELLS FARGO CAPITAL FINANCE CORPORATION CANADA (“WFCFC”), as administrative agent (the “Agent”), co-collateral Agent, and Swingline Lender, GE CANADA FINANCE
HOLDING COMPANY, as co-collateral agent (together with WFCFC in such capacity, the “Co-Collateral Agents”), CIBC ASSET-BASED LENDING INC. and BANK OF MONTREAL as Co-Syndication Agents, GE CANADA FINANCE HOLDING COMPANY as
Documentation Agent, and WELLS FARGO CAPITAL FINANCE CORPORATION CANADA, GE CAPITAL MARKETS (CANADA) LIMITED, GE CAPITAL MARKETS, INC., CIBC ASSET-BASED LENDING INC. and BMO CAPITAL MARKETS as joint lead arrangers and bookrunners (the
“Arrangers”). 
 The Borrower has requested that the Lenders provide a revolving credit facility, and the
Lenders have indicated their willingness to lend and the L/C Issuing Bank shall issue Letters of Credit, in each case on the terms and conditions set forth herein. 
 In consideration of the mutual covenants and agreements herein contained, the parties hereto covenant and agree as follows:. 
 ARTICLE I 
 DEFINITIONS AND ACCOUNTING TERMS 

SECTION 1.01. Certain Defined Terms. 
 As used in this Agreement, the following terms shall have the following meanings (such meanings to be equally applicable to both the singular and plural forms of the terms defined): 

“Accelerated Borrowing Base Delivery Event” means either (i) the occurrence and continuance of any
Event of Default, or (ii) the failure of the Borrower for three (3) days (whether or not consecutive) during any thirty (30) day period to maintain Excess Availability equal to at least 20% of the Line Cap. For purposes of this
Agreement, the occurrence of an Accelerated Borrowing Base Delivery Event shall be deemed continuing at the Agent’s option (x) so long as such Event of Default shall be continuing, and/or (y) if the Accelerated Borrowing Base Delivery
Event arises as a result of the Borrower’s failure to maintain Excess Availability as required hereunder, until Excess Availability has exceeded 20% of the Line Cap for thirty (30) consecutive calendar days, in which case an Accelerated
Borrowing Base Delivery Event shall no longer be deemed to be continuing for purposes of this Agreement. The termination of an Accelerated Borrowing Base Delivery Event as provided herein shall in no way limit, waive or delay the occurrence of a
subsequent Accelerated Borrowing Base Delivery Event in the event that the conditions set forth in clauses (i) or (ii) hereof again arise. 
 “ACH” means automated clearing house transfers. 

“Acquisition” means, with respect to any Person (a) a purchase of a controlling interest in, the
equity interests of any other Person, (b) a purchase or other acquisition of all or substantially all of the assets or properties of, another Person or of any business unit of another Person, or (c) any amalgamation, merger or
consolidation of such Person with any other Person or other transaction or series of transactions resulting in the acquisition of all or substantially all of the assets, or a controlling interest in the equity interests, of any Person, in each case
in any transaction or group of transactions which are part of a common plan. 
 “Additional Commitment
Lender” shall have the meaning provided therefor in Section 2.18(c). 

 “Adjusted LIBOR Rate” means, with respect to any Revolving
Advances denominated in Dollars, for any Interest Period, an interest rate per annum (rounded upwards, if necessary, to the next 1/16 of one percent (1%)) equal to the LIBOR Rate for such Interest Period multiplied by the Statutory Reserve
Rate. The Adjusted LIBOR Rate will be adjusted automatically as of the effective date of any change in the Statutory Reserve Rate. 
 “Adjustment Date” shall have the meaning provided therefor in Schedule IA. 
 “Advance” means any advance by a Lender to the Borrower as part of a Borrowing. 
 “Affiliate” means, as to any Person, any other Person that, directly or indirectly, controls, is controlled by or is under common control with such Person or is a director or officer of
such Person. For purposes of this definition, the term “control” (including the terms “controlling”, “controlled by” and “under common control with”) of a Person means the possession, direct or indirect, of
the power to direct or cause the direction of the management and policies of such Person by contract or otherwise. 
 “Agent” has the meaning provided in the Preamble, and includes any successor thereto. 
 “Agent’s Account” means, collectively, the accounts of the Agent maintained by the Agent at TD Canada Trust, Account Nos. 0690-5388221 (with respect to payments made to such account
in Canadian Dollars) and 0690-7387637 (with respect to payments made to such account in Dollars). 

“Aggregate Commitments” means the aggregate of the Commitments of all the Lenders. As of the Effective
Date the Aggregate Commitments are CAN$800,000,000. 
 “Applicable Lending Office” means, with
respect to each Lender, the office of such Lender specified as its “Lending Office” on the signature pages hereof or in the Assignment and Acceptance pursuant to which it became a Lender, or such other office of such Lender as such Lender
may from time to time specify in writing to the Borrower and the Agent. 
 “Applicable Margin”
means, initially, (a) 2.75% per annum for BA Rate Advances, LIBOR Rate Advances and Standby L/C Fees, and (b) 2.25% per annum for Base Rate Advances, Prime Rate Advances and Commercial L/C Fees; provided, that on and after
the first Adjustment Date occurring after the Effective Date, the Applicable Margin will be determined pursuant to the Pricing Grid; notwithstanding the foregoing, the Applicable Margin shall be established at Level 2 in the Pricing Grid until
December 31, 2010 (even if the requirements for such Level or a lower Level are satisfied prior to that date). 
 “Application” means an application, in such form as the L/C Issuing Bank may specify from time to time, requesting the L/C Issuing Bank to open a Letter of Credit. 

“Approved Foreign Vendor” means a Foreign Vendor which (a) is located in any country acceptable to
the Agent in its Permitted Discretion, (b) has received timely payment or performance of all obligations owed to it by the Loan Parties, and (c) has not asserted and has no right to assert any reclamation, repossession, diversion, stoppage
in transit, Lien or title retention rights in respect of such Inventory. 
 “Approved Fund”
means any Fund that is administered or managed by (a) a Lender, (b) an Affiliate of a Lender or (c) an entity or an Affiliate of an entity that administers or manages a Lender. 

“Arrangers” has the meaning provided in the Preamble, and includes any successor thereto. 

“Assignment and Acceptance” means an assignment and acceptance entered into by a Lender and an Eligible
Assignee, and accepted by the Agent, in substantially the form of Exhibit B hereto. 

  
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 “Authorized Officer” means, as to the Borrower or any other
Loan Party, its president, chief executive officer, chief financial officer, vice president and controller, vice president and treasurer, vice president, finance, executive vice president, finance or any other person designated by it and acceptable
to the Agent. Any document delivered hereunder that is signed by an Authorized Officer of a Loan Party shall be conclusively presumed to have been authorized by all necessary corporate, partnership, trust and/or other action on the part of such Loan
Party and such Authorized Officer shall be conclusively presumed to have acted on behalf of such Loan Party. 

“Availability Reserves” means, without duplication of any other reserves or items that are otherwise
addressed or excluded through eligibility criteria, such reserves as the Agent from time to time determines in its Permitted Discretion as being appropriate (a) to reflect the impediments to the Agent’s ability to realize upon the
Collateral, (b) to reflect claims and liabilities that the Agent determines will need to be satisfied in connection with the realization upon the Collateral, (c) to reflect criteria, events, conditions, contingencies or risks which
adversely affect any component of the Borrowing Base, or (d) to reflect that a Default or an Event of Default then exists. Without limiting the generality of the foregoing, Availability Reserves may include, in the Agent’s Permitted
Discretion (but are not limited to) reserves based on: (i) customs duties, and other costs to release Inventory which is being imported into Canada, (ii) to reflect the Agent’s estimate of the amount of any Priority Payables Reserve,
(iii) reasonably anticipated changes in the Net Orderly Liquidation Value between appraisals, (iv) warehousemen’s or bailees’ charges and other Permitted Liens which may have priority over the interests of the Agent in the
Collateral, (v) after the occurrence and during the continuance of a Cash Dominion Event, Cash Management Reserves, (vi) after the occurrence and during the continuance of a Cash Dominion Event, Bank Products Reserves, (vii) after the
occurrence and during the continuance of a Cash Dominion Event, amounts due to vendors on account of consigned goods and commissions due to Persons which operate Dealer Stores, (viii) rent expense at leased Stores and DC locations,
(ix) royalties payable to non-Loan Parties in respect of licensed merchandise, (x) the Gift Card Liability Reserve, (xi) Customer Deposits Reserve, and (xii) after the occurrence and during the continuance of a Cash Dominion
Event, amounts due to any province’s lottery commission or other equivalent agency, authority or entity, or to any other Governmental Authority involved in the administration or regulation of lotteries. 

“Available Commitment” means as to any Lender at any time, an amount equal to the excess, if any, of
(a) such Lender’s Commitment then in effect over (b) such Lender’s Extensions of Credit then outstanding; provided, that in calculating any Lender’s Extensions of Credit for the purpose of determining such
Lender’s Available Commitment pursuant to Section 2.05(a), the aggregate principal amount of Swingline Advances then outstanding shall be deemed to be zero. 

“BA Rate” means, for the Interest Period of each BA Rate Loan, the rate determined by the Agent by
reference to the actual discount rates for bankers’ acceptances for such Interest Period quoted by the Canadian Reference Bank at or about 10:00 a.m. (Toronto time) on the first day of the applicable Interest Period. 

“BA Rate Advance” means an Advance in Canadian Dollars that bears interest as provided in
Section 2.08(a)(ii). 
 “Bank Products” means any services or facilities provided to any
Loan Party by any Lender or any of its Affiliates on account of (a) each Swap Contract that is entered into after the Effective Date with any counterparty that is a Credit Party at the time such Swap Contract is entered into, (b) leasing
(but only to the extent that the Borrower and the Credit Party furnishing such lease notify the Agent in writing that such leases are to be deemed Bank Products hereunder), (c) factoring arrangements, but excluding Cash Management Services, and
(d) the foreign exchange hedging facility entered into by the Borrower and Canadian Imperial Bank of Commerce prior to, and in effect as of, the Effective Date. 

“Bank Product Reserves” means such reserves as the Agent may from time to time determine in its
Permitted Discretion as being appropriate to reflect the liabilities and obligations of the Loan Parties 

  
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with respect to Bank Products then provided or outstanding; provided that in the event that any counterparty to a Swap Contract requires that the Loan Parties provide cash collateral to
secure such Swap Contract, the amount of the Bank Product Reserve imposed by the Agent with respect to such Swap Contract shall take into consideration the amount of such cash collateral. 

“Base Rate” means, for Advances denominated in CAN$ for any day, a fluctuating interest rate per annum
in effect from time to time, which rate per annum shall at all times be equal to the higher of (a) the rate of interest announced publicly by the Canadian Reference Bank, from time to time, as its prime rate, and (b) 1.5% per annum
above the BA Rate in effect at the time of determination for a 30-day Interest Period. Any change in the prime rate or such BA Rate shall take effect at the opening of business on the date of such change. 

“Base Rate Advance” means an Advance made in CAN$ that bears interest as provided in
Section 2.08(a)(i). 
 “BIA” means the Bankruptcy and Insolvency Act (Canada).

 “Blocked Accounts” means the Blocked Accounts described in Section 6.01(m)(i) and any
additional deposit accounts that become subject to Blocked Account Agreements pursuant to Section 6.01(i)(iv). 
 “Blocked Account Agreement” means with respect to a Blocked Account established by a Loan Party, an agreement, in form and substance reasonably satisfactory to the Agent, establishing
control of such account by the Agent and whereby the bank maintaining such account agrees, upon the occurrence and during the continuance of a Cash Dominion Event, to comply only with the instructions originated by the Agent without the further
consent of any other Person. 
 “Blocked Account Bank” means each of Bank of Montreal, Royal
Bank of Canada, Canadian Imperial Bank of Commerce and HSBC Bank Canada, and each other bank with whom deposit accounts are maintained in which funds of any of the Loan Parties are concentrated and with whom a Blocked Account Agreement has been, or
is required to be, executed in accordance with the terms hereof. 
 “Borrower Information” has
the meaning specified in Section 9.08. 
 “Borrower” has the meaning provided in the
Preamble. 
 “Borrowing” means a borrowing consisting of simultaneous Advances of the same Type
made by each of the applicable Lenders pursuant to Section 2.01 or Section 2.03. 
 “Borrowing
Base” means, at any time, an amount equal to (a) 85% of the aggregate outstanding Eligible Credit Card Accounts Receivable at such time plus (b) the lesser of (i) 85% of the Net Eligible Inventory at such time and
(ii) 85% of the Net Orderly Liquidation Value at such time, minus (d) 100% of the then Availability Reserves; provided that, until such time as Corbeil guarantees the full amount of the Obligations and shall have delivered
such legal opinions and executed such other Loan Documents as the Agent may reasonably require in connection with such guarantee, all in form and substance satisfactory to the Agent, not more than CAN$24,000,000 in the aggregate shall be included in
the Borrowing Base in respect of Inventory or Credit Card Accounts Receivable of Corbeil. The Agent may, in its Permitted Discretion after the expiration of the Reserve Notice Period, adjust Availability Reserves and Inventory Reserves used in
computing the Borrowing Base. 
 “Borrowing Base Certificate” means a certificate, signed by an
Authorized Officer of the Borrower, substantially in the form of Exhibit C or another form which is reasonably acceptable to the Agent in its Permitted Discretion. 

  
 4 

 “Business Day” means a day of the year on which banks are
not required or authorized by law to close in Toronto, Ontario or Boston, Massachusetts, and, if the applicable Business Day relates to LIBOR Rate Advances, a day of the year on which dealings are carried on in the London interbank market.

 “Canadian Dollars” and “CAN$” refers to lawful money of Canada. 

“Canadian Pension Plans” means each of the Canadian pension plans, if any, whether or not registered in
accordance with the ITA, which the Borrower or any Subsidiary Guarantor sponsors, maintains or administers or into which the Borrower or any Subsidiary Guarantor makes or is obligated to make contributions at any time. 

“Canadian Reference Bank” means The Toronto-Dominion Bank, or its successors and assigns, or such other
bank listed in Schedule I to the Bank Act (Canada) as the Agent may from time to time designate. 

“Capital Expenditures” means, with respect to any Person for any period, all cash expenditures made or
costs incurred for the acquisition or improvement of fixed or capital assets of such Person, in each case that are (or should be) set forth as capital expenditures in a consolidated statement of cash flows of such Person for such period, in each
case prepared in accordance with GAAP. 
 “Capital Lease Obligations” means, with respect to
any Person for any period, the obligations of such Person to pay rent or other amounts under any lease of (or other arrangement conveying the right to use) real or personal property, or a combination thereof, which obligations are required to be
classified and accounted for as liabilities on a balance sheet of such Person under GAAP and the amount of which obligations shall be the capitalized amount thereof determined in accordance with GAAP. 

“Cash Dominion Event” means either (a) the occurrence and continuance of an Event of Default, or
(b) Excess Availability at any time is less than 15% of the Line Cap. For purposes hereof, the occurrence of a Cash Dominion Event shall be deemed continuing at the Agent’s option (i) so long as such Event of Default is continuing,
and/or (ii) if the Cash Dominion Event arises as a result of the Borrower’s failure to achieve Excess Availability in the amount described in the preceding sentence, until Excess Availability has exceeded such amount for thirty
(30) consecutive days, in which case a Cash Dominion Event shall no longer be deemed to be continuing for purposes of this Agreement; provided that a Cash Dominion Event shall be deemed continuing (even if Excess Availability exceeds
such amount for thirty (30) consecutive days) after a Cash Dominion Event has occurred on two (2) occasions during any twelve month period after the Effective Date if the first such Cash Dominion Event has been discontinued and shall
continue until the expiration of the twelve month period ending after the commencement of the second Cash Dominion Event. The termination of a Cash Dominion Event as provided herein shall in no way limit, waive or delay the occurrence of a
subsequent Cash Dominion Event in the event that the conditions set forth in this definition again arise. 

“Cash Equivalents” means investments of the Borrower and its Subsidiaries recorded as cash or cash
equivalents in accordance with GAAP. 
 “Cash Management Reserves” means such reserves as the
Agent, from time to time, determines in its Permitted Discretion as being appropriate to reflect the reasonably anticipated liabilities and obligations of the Loan Parties with respect to Cash Management Services then provided or outstanding.

 “Cash Management Services” means any one or more of the following types of services or
facilities provided to any Loan Party by any Lender or any of its Affiliates: (a) ACH transactions, (b) cash management services, including, without limitation, controlled disbursement services, treasury, depository, overdraft, and
electronic funds transfer services, (c) foreign exchange facilities, (d) credit card processing services, (e) credit or debit cards and (f) purchase cards (but only to the extent that, prior to the occurrence and continuance of
any Default or Event of Default, the Borrower and the Credit Party issuing such purchase cards notify the Agent in writing that such purchase cards are to be deemed Cash Management Services hereunder). 

  
 5 

 “CCAA” means the Companies’ Creditors Arrangement
Act (Canada). 
 “Co-Collateral Agents” has the meaning provided in the Preamble and
includes any successor thereto. 
 “Co-Collateral Agents Right Letter” means that certain
letter agreement dated as of the date hereof by and among the Borrower, the Agent and the Co-Collateral Agents, in the form attached hereto as Exhibit H. 

“Collateral” means all property of the Loan Parties, now owned or hereafter acquired, upon which a Lien
(excluding any license granted to the Agent (and deemed to be a Lien pursuant to the definition thereof) for the sole purpose of enabling the Agent to exercise rights and remedies with respect to the Liens granted on the Collateral set forth in
Section 3.1 of the Guarantee and Collateral Agreement) is purported to be created by any Security Document. 
 “Commercial L/C” means a commercial documentary Letter of Credit under which the L/C Issuing Bank agrees to make payments in Dollars or Canadian Dollars for the account of the Borrower,
on behalf of any Group Member, in respect of obligations of such Group Member in connection with the purchase of goods or services in the ordinary course of business. 

“Commitment” means, as to any Lender, the obligation of such Lender to make Revolving Advances and
participate in Swingline Advances and Letters of Credit in an aggregate principal amount and/or face amount up to (a) the amount set forth opposite such Lender’s name on Schedule 1.01 or (b) if such Lender has entered into any
Assignment and Acceptance, the amount set forth for such Lender in the Register maintained by the Agent pursuant to Section 9.07(d), as such amount may be reduced or increased pursuant to Section 2.06 or Section 2.18. 

“Commitment Effective Date” means the date on which the conditions precedent set forth in
Section 4.02 have been satisfied. 
 “Commitment Fee Rate” means 0.50% per annum.

 “Commitment Increase” has the meaning specified in Section 2.18(a). 

“Commitment Increase Request” has the meaning specified in Section 2.18(a). 

“Commitment Percentage” means, as to any Lender at any time, the percentage which such Lender’s
Commitment then constitutes of the Aggregate Commitments or, at any time after all of the Commitments shall have expired or terminated, the percentage which the aggregate principal amount of such Lender’s Advances then outstanding plus such
Lender’s participation in Swingline Advances and L/C Obligations constitutes of the aggregate principal amount of the Advances, Swingline Advances and L/C Obligations then outstanding. 

“Consolidated” refers to the consolidation of accounts of the Borrower and its Subsidiaries, in
accordance with GAAP and as presented on a GAAP basis. 
 “Consolidated EBITDA” means, for any
period, an amount equal to Consolidated Net Income of the Borrower and its Subsidiaries for such period, plus (a) the following to the extent deducted in calculating such Consolidated Net Income: (i) Consolidated Interest Expense,
(ii) the provision for federal, provincial, state, local and foreign income taxes, (iii) depreciation and amortization expense, (iv) other non-recurring expenses which do not represent a cash item in such period or any future period,
and (v)

  
 6 

 
compensation expenses which do not represent a cash item in such period or any future period (in each case of or by the Borrower and its Subsidiaries for such period), minus (b) the
following to the extent included in calculating such Consolidated Net Income: (i) federal, provincial, state, local and foreign income tax credits and (ii) all items increasing Consolidated Net Income which do not represent a cash item in
such period or any future period, all as determined on a Consolidated basis in accordance with GAAP. 

“Consolidated Interest Expense” means for any period for any Person, total interest expense of such
Person (including that attributable to Capital Lease Obligations and other expenses classified as interest expense in accordance with GAAP) on a Consolidated basis, as determined in accordance with GAAP. 

“Consolidated Net Income” means, for any period, the consolidated net income (or loss) of the Borrower
and its Subsidiaries, determined on a Consolidated basis in accordance with GAAP; provided that there shall be excluded (a) the income (or deficit) of any Person accrued prior to the date it becomes a Subsidiary of the Borrower or is
merged into or consolidated with the Borrower or any of its Subsidiaries, (b) the income (or deficit) of any Person (other than a Subsidiary of the Borrower) in which the Borrower or any of its Subsidiaries has an ownership interest, except to
the extent that any such income is actually received by the Borrower or such Subsidiary in the form of dividends or similar distributions and (c) the undistributed earnings of any Subsidiary of the Borrower (other than a Loan Party) to the
extent that the declaration or payment of dividends or similar distributions by such Subsidiary is not at the time permitted by the terms of any contractual obligation (other than under any Loan Document) or Requirement of Law applicable to such
Subsidiary. 
 “Control Co-Collateral Agent” has the meaning provided in the Guarantee and
Collateral Agreement. 
 “Convert”, “Conversion” and
“Converted” each refers to a conversion of Advances of one Type into Advances of another Type pursuant to Section 2.09 or 2.10. 
 “Corbeil” means Corbeil Électrique Inc., a corporation organized under the laws of Quebec. 
 “Co-Syndication Agents” has the meaning provided in the Preamble and includes any successors thereto. 

“Covenant Compliance Event” means Excess Availability at any time is less than or equal to 12.5% of the
Line Cap. The termination of a Covenant Compliance Event as provided herein shall in no way limit, waive or delay the occurrence of a subsequent Covenant Compliance Event in the event that the conditions set forth in this definition again arise.

 “Credit Card Accounts Receivable” means each Account (as defined in the PPSA) together with
all income, payments and proceeds thereof, owed by a credit card payment processor or an issuer of credit cards to a Loan Party resulting from charges by a customer of a Group Member on credit cards issued by such issuer in connection with the sale
of goods by a Group Member, or services performed by a Group Member, in each case in the ordinary course of its business. 
 “Credit Card Notification” has the meaning specified in Section 6.01(m)(i)(A). 
 “Credit Card Processors” has the meaning specified in Section 6.01(m)(i)(A). 
 “Credit Party” or “Credit Parties” means (a) individually, (i) each Lender and its Affiliates, (ii) the Agent, (iii) the L/C Issuing Bank,
(iv) the Arranger, and (v) the successors and assigns of each of the foregoing, and (b) collectively, all of the foregoing. 

  
 7 

 “Customer Deposits Reserve” shall mean, at any time, a
reserve equal to the aggregate outstanding amount of customer deposits of the Loan Parties at such time. 

“Customs Broker Agreement” means an agreement in substantially the form attached hereto as Exhibit
F, or such other form as the Agent may reasonably agree, among a Loan Party, a customs broker or other carrier, and the Agent, in which the customs broker or other carrier acknowledges that it has control over and holds the documents evidencing
ownership of the subject Inventory for the benefit of the Agent and agrees, upon notice from the Agent (which shall not be furnished unless an Event of Default is continuing), to hold and dispose of the subject Inventory solely as directed by the
Agent. 
 “DC” means any distribution center owned or leased and operated by any Loan Party.

 “DDA” means each chequing, savings or other demand deposit account maintained by any of the
Loan Parties. 
 “Dealer Store” means any store constituting a “Sears Authorized Dealer
Store”, independently owned and operated by a Person (other than a Loan Party or any of its Subsidiaries) pursuant to a “Sears Canada Inc. Authorized Dealer Agreement”. 

“Debt” of any Person means, without duplication, (a) all indebtedness of such Person for borrowed
money (excluding interest payable thereon unless such interest has been accrued and added to the principal amount of such indebtedness), (b) all obligations of such Person for the deferred purchase price of property or services (other than
trade payables incurred in the ordinary course of such Person’s business), (c) all obligations of such Person evidenced by notes, bonds, debentures or other similar instruments (other than performance, surety and appeals bonds arising in
the ordinary course of business and other than the endorsement of negotiable instruments for deposit or collection or similar transactions in the ordinary course of business) or in respect of bankers’ acceptances or letters of credit,
(d) all obligations of such Person created or arising under any conditional sale or other title retention agreement with respect to property acquired by such Person (even though the rights and remedies of the seller or lender under such
agreement in the event of default are limited to repossession or sale of such property), (e) all obligations of such Person as lessee under leases that have been or should be, in accordance with GAAP, recorded as capital leases, (f) all
direct recourse payment obligations of such Person in respect of any accounts receivable sold by such Person, (g) all Debt of others referred to in clauses (a) through (f) above or clause (h) below and other payment obligations
guaranteed directly or indirectly in any manner by such Person, or in effect guaranteed directly or indirectly by such Person through an agreement (1) to pay or purchase such Debt or to advance or supply funds for the payment or purchase of
such Debt, (2) to purchase, sell or lease (as lessee or lessor) property, or to purchase or sell services, primarily for the purpose of enabling the debtor to make payment of such Debt or to assure the holder of such Debt against loss,
(3) to supply funds to or in any other manner invest in the debtor (including any agreement to pay for property or services irrespective of whether such property is received or such services are rendered) or (4) otherwise to assure a
creditor against loss, and (h) all Debt referred to in clauses (a) through (g) above secured by (or for which the holder of such Debt has an existing right, contingent or otherwise, to be secured by) any Lien on property (including
accounts and contract rights) owned by such Person, even though such Person has not assumed or become liable for the payment of such Debt. 
 “Default” means any Event of Default or any event that would constitute an Event of Default but for the requirement that notice be given or time elapse or both. 

“Defaulting Lender” means any Lender (as reasonably determined by the Agent) that (a) has failed to
fund any portion of the Advances, participations in Letters of Credit or participations in Swingline Loans required to be funded by it hereunder within one Business Day of the date required to be funded by it hereunder, (b) has otherwise failed
to pay over to the Agent or any other Lender any other amount required to be paid by it hereunder within one Business Day of the date when due, (c) has failed, within three (3) Business Days after request by the Agent, to confirm that it
will comply with the terms of this Agreement 

  
 8 

 
relating to its Commitments, provided that such Lender shall cease to be a Defaulting Lender under this clause (c) upon the Agent’s receipt of such confirmation, or (d) has
been declared insolvent by any Governmental Authority pursuant to a court order or become the subject of a bankruptcy or insolvency proceeding. 
 “Deteriorating Lender” means any Defaulting Lender or any Lender as to which (a) any of the L/C Issuing Bank or the Swingline Lender has a good faith belief that such Lender or its
Subsidiary has defaulted in fulfilling its obligations under one or more other syndicated credit facilities, or (b) such Lender or a Person that controls such Lender has been declared insolvent by any Governmental Authority pursuant to a court
order or become the subject of a bankruptcy, insolvency or similar proceeding; provided that a Lender shall not be a Deteriorating Lender solely by virtue of the ownership or acquisition of any equity interest in such Lender or the Person
controlling such Lender by a Governmental Authority. 
 “Disposition” means any sale or
transfer of property other than goods held for sale in the ordinary course of business. 

“Documentation Agent” has the meaning provided in the Preamble and includes any successors thereto.

 “Dollars” and “$” refers to lawful money of the United States. 

“Effective Date” means the date on which the conditions precedent set forth in Section 4.01 shall
have been satisfied. 
 “Eligible Assignee” means (a) a commercial bank or any other
Person engaged in the business of making asset based or commercial loans, which bank or Person, together with its Affiliates, has a combined capital and surplus in excess of CAN$300,000,000 and which bank or Person is approved by the Agent, and,
unless an Event of Default has occurred and is continuing at the time any assignment is effected in accordance with Section 9.07, the Borrower, in each case such approval not to be unreasonably withheld or delayed, (b) an existing Lender
or an Affiliate of an existing Lender or an Approved Fund, or (c) any Permitted Holder Lender; provided that neither the Borrower nor an Affiliate of the Borrower (other than a Permitted Holder Lender) shall qualify as an Eligible
Assignee. 
 “Eligible Credit Card Accounts Receivable” means at the time of any determination
thereof, each Credit Card Account Receivable that satisfies the following criteria at the time of its creation and continues to meet the same at the time of such determination: such Credit Card Account Receivable (i) has been earned and
represents the bona fide amounts due to a Loan Party from a credit card payment processor and/or credit card issuer, and in each case originated in the ordinary course of business of the applicable Loan Party and (ii) is not ineligible for
inclusion in the calculation of the Borrowing Base pursuant to any of clauses (a) through (j), inclusive, below. Without limiting the foregoing, to qualify as an Eligible Credit Card Account Receivable, an Account shall indicate no person other
than a Loan Party as payee or remittance party. In determining the amount to be so included, the face amount of an Account shall be reduced by, without duplication, to the extent not reflected in such face amount, (i) the amount of all accrued
and actual discounts, claims, credits or credits pending, promotional program allowances, price adjustments, finance charges, credit card processor fees or other allowances (including any amount that the applicable Loan Party may be obligated to
rebate to a customer, a credit card payment processor, or credit card issuer pursuant to the terms of any agreement or understanding (written or oral)) and (ii) the aggregate amount of all cash received in respect of such Account but not yet
applied by the applicable Loan Party to reduce the amount of such Credit Card Account Receivable. Unless otherwise approved from time to time in writing by the Agent in its Permitted Discretion, no Credit Card Account Receivable shall be an Eligible
Credit Card Account Receivable if, without duplication: 
 (a) such Credit Card Account Receivable is not owned
by a Loan Party and such Loan Party does not have good or marketable title to such Credit Card Account Receivable; 

  
 9 

 (b) such Credit Card Account Receivable does not constitute an
“Account” (as defined in the PPSA) or such Credit Card Account Receivable has been outstanding for more than three (3) Business Days; 
 (c) the issuer or payment processor of the applicable credit card with respect to such Credit Card Account Receivable is the subject of any bankruptcy or insolvency proceedings, or has otherwise suspended
its business or made an assignment for the benefit of its creditors; 
 (d) such Credit Card Account Receivable
is not the valid, legally enforceable obligation of the applicable issuer with respect thereto; 
 (e) such
Credit Card Account Receivable is subject to any Lien whatsoever other than Liens in favor of the Agent, Permitted Liens and Liens permitted pursuant to Section 6.02(a)(vi); 

(f) such Credit Card Account Receivable is not subject to a valid and perfected Lien in favor of the Agent, for the
benefit of the Credit Parties, senior in priority to all other Liens other than Permitted Liens which have priority over the Liens of the Agent by operation of applicable law and Liens of the type specified in clause (g) of the definition of
Permitted Liens; 
 (g) the Credit Card Account Receivable does not conform to all representations, warranties,
covenants or other provisions in the Loan Documents relating to Credit Card Accounts Receivable; 
 (h) such
Credit Card Account Receivable is subject to risk of set-off, non-collection or not being processed due to unpaid and/or accrued credit card processor fee balances, limited to the lesser of the balance of Credit Card Account Receivable or unpaid
credit card processor fees; 
 (i) such Credit Card Account Receivable does not meet such other reasonable
eligibility criteria for Credit Card Accounts Receivable as the Agent may determine from time to time in its Permitted Discretion; or 
 (j) such Credit Card Receivable did not arise from merchandise sold or services rendered by the applicable Loan Party in the ordinary course of its business; 

“Eligible In-Transit Inventory” means, as of any date of determination thereof, without duplication of other Eligible
Inventory, In-Transit Inventory: 
 (a) which has been shipped from a location outside of Canada for receipt by a
Loan Party, but which has not yet been delivered to such Loan Party, which In-Transit Inventory has been in transit for sixty (60) days or less from the date of shipment of such Inventory; 

(b) for which the purchase order is in the name of a Loan Party and title has passed to such Loan Party; 

(c) for which the document of title reflects a Loan Party as consignee or, if requested by the Agent, names the Control
Co-Collateral Agent as consignee, and in each case as to which the Control Co-Collateral Agent has control over the documents of title which evidence ownership of the subject Inventory (such as, if requested by the Agent, by the delivery of a
Customs Broker Agreement and a control agreement with a carrier or freight forwarder); 
 (d) which is insured
to the reasonable satisfaction of the Agent (including, without limitation, marine cargo insurance); 

  
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 (e) the Foreign Vendor with respect to such In-Transit Inventory is an
Approved Foreign Vendor; 
 (f) for which (i) payment of the purchase price has been made by the applicable
Loan Party to the vendor of such Inventory and evidence of such payment has been received by the Agent or (ii) the purchase price is supported by a Commercial L/C, in which event an Inventory Reserve equal to 25% of the Inventory Value of such
Inventory shall be established; and 
 (g) which otherwise would not be excluded from the definition of Eligible
Inventory by any of clauses (a), (d) through (g), inclusive, or (i) through (s), inclusive, thereof; 

provided that the Agent may, in its Permitted Discretion, exclude any particular Inventory from the definition of
“Eligible In-Transit Inventory” in the event the Agent determines that such Inventory is subject to any Person’s right or claim which is senior to, or pari passu with, the Lien of the Control Co-Collateral Agent (such as, without
limitation, a right of stoppage in transit) or may otherwise adversely impact the ability of the Co-Collateral Agents to realize upon such Inventory. 
 “Eligible Inventory” means, at any time, without duplication, (i) after such time following the Effective Date as the Agent has completed its review to its reasonable satisfaction of
the Borrower’s and the other Loan Parties’ In-Transit Inventory, Eligible In-Transit Inventory, and (ii) items of Inventory of any Loan Party that are held for retail sale to the public in the ordinary course of business,
merchantable, and readily saleable to the public in the ordinary course of business, that is not ineligible for inclusion in the calculation of the Borrowing Base pursuant to any of clauses (a) through (s) below. Without limiting the
foregoing, to qualify as “Eligible Inventory” no Person other than the Loan Parties shall have any direct or indirect ownership, interest or title to such Inventory and no Person other than the Loan Parties shall be indicated on any
purchase order or invoice with respect to such Inventory as having or purporting to have an interest therein. Unless otherwise from time to time approved in writing by the Agent in its Permitted Discretion, no Inventory shall be deemed Eligible
Inventory if, without duplication: 
 (a) the Loan Parties do not have sole and good, valid and unencumbered
title thereto (except for Liens of the type described in clauses (a), (b), (c), (d), (e) and (q) of the definition of Permitted Liens); or 
 (b) it is not located in Canada (other than Eligible In-Transit Inventory); or 
 (c) it is not located at property owned or leased by the Loan Parties (except to the extent such Inventory is (i) Eligible In-Transit Inventory, (ii) in transit between such locations, or
(iii) located at a Dealer Store, provided that the amount of Inventory located at all Dealer Stores which may constitute Eligible Inventory shall not exceed the lesser of CAN$100,000,000 or ten percent (10%) of the Inventory Value
of all Eligible Inventory in the aggregate, or (iii) is deemed eligible pursuant to clause (g)) or is located at a third party warehouse or is located at a closed Store (except pursuant to clause (f)) or is located at a closed DC; or

 (d) it is not subject to a valid and perfected Lien in favor of the Agent for the benefit of the Credit
Parties, senior in priority to all other Liens other than Permitted Liens which have priority over the Liens of the Agent by operation of applicable law, including Liens of the types described in clauses (a) through (c), inclusive, of the
definition of Permitted Liens; or 
 (e) it is subject to any Lien whatsoever other than Liens in favor of the
Agent, Permitted Liens and Liens permitted pursuant to Section 6.02(a)(vi); or 
 (f) it is Inventory
located at a Store which is being closed; provided, however that such Inventory will be deemed eligible for the first four (4) weeks after the commencement of the Store Closure Sale for that Store, provided further that the
Inventory Value of such Inventory shall be reduced by the “closed store reserve” established by the Borrower with respect to such Inventory consistent with past practices; or 

  
 11 

 (g) it is consigned from a vendor or is at a customer location but still
accounted for in the applicable Loan Party’s inventory balance; or 
 (h) it is in-transit from a vendor
and has not yet been received into a DC or Store (other than Eligible In-Transit Inventory); or 
 (i) it is
identified in the stockledger of the applicable Loan Party as any of the following departments or consists of Inventory which is ordinarily classified by such Loan Party consistent with its historical practices as the following: floral; gasoline;
live plants; miscellaneous or other as classified on the Loan Party’s stockledger; produce; books; magazines; restaurant operations; or seafood; or it is identified per the applicable Loan Party’s stockledger as candy; or 

(j) it is Inventory that has been packed-away and stored for more than 12 months at a DC or a Store for future sale; or

 (k) it is identified as wholesaler freight fees; or 

(l) it is Inventory on layaway or is Inventory which has been sold but not delivered or as to which any Loan Party has
accepted a deposit from a third party; or 
 (m) it is identified per the Loan Parties’ stockledger as
Inventory that is in a leased department, including digital imaging, photofinishing and 1 hour lab; or 
 (n) it
is otherwise deemed ineligible by the Agent in its Permitted Discretion after the expiration of the Reserve Notice Period; or 
 (o) it is (i) operating supplies, packaging or shipping materials, cartons, labels or other such materials not considered used for sale in the ordinary course of business by the Agent in its
Permitted Discretion, (ii) work-in-process, raw materials, (iii) not in material compliance with all standards imposed by any Governmental Authority having regulatory authority over such Inventory, its use or sale, or (iv) bill and
hold goods; or 
 (p) it is Inventory which exhibits, includes or is identified by any trademark, tradename or
other Intellectual Property right which trademark, tradename or other Intellectual Property right (i) is subject to a restriction that could reasonably be expected to adversely affect the Agent’s ability to liquidate such Inventory or
(ii) the relevant Loan Party does not have the right to use in connection with the sale of such Inventory, either through direct ownership or through a written license or sublicense; or 

(q) it is Inventory that is not insured in compliance with the provisions of Section 6.01(c), or 

(r) it is Inventory that does not conform to all representations, warranties, covenants or other provisions in the Loan
Documents relating to Inventory; or 
 (s) it is Inventory acquired in a Permitted Acquisition and the Agent has
not completed its diligence with respect thereto, provided that such Inventory shall be deemed to constitute Eligible Inventory for a period of 30 days after the date of its acquisition notwithstanding that the Agent has not completed such
due diligence as long as such Inventory is of the same kind and quality as other of the Loan Parties’ Inventory and would otherwise constitute Eligible Inventory. 

  
 12 

 “Environmental Action” means any action, suit, demand,
demand letter, claim, notice of noncompliance or violation, notice of liability or potential liability, investigation, proceeding, consent order or consent agreement relating in any way to any Environmental Law, Environmental Permit or Hazardous
Materials or arising from alleged injury or threat of injury to health, safety or the environment, including (a) by any governmental or regulatory authority for enforcement, cleanup, removal, response, remedial or other actions or damages and
(b) by any governmental or regulatory authority or any third party for damages, contribution, indemnification, cost recovery, compensation or injunctive relief. 

“Environmental Law” means any federal, provincial, local or foreign statute, law, ordinance, rule,
regulation, code, order, judgment, decree or judicial or agency interpretation, policy or guidance relating to pollution or protection of the environment, health, safety or natural resources, including those relating to the use, handling,
transportation, treatment, storage, disposal, release or discharge of Hazardous Materials. 

“Environmental Liability” means any liability, contingent or otherwise (including any liability for
damages, costs of environmental remediation, fines, penalties or indemnities), of the Borrower, or any of its Subsidiaries directly or indirectly resulting from or based upon (a) violation of any Environmental Law, (b) the generation, use,
handling, transportation, storage, treatment or disposal of any Hazardous Materials, (c) exposure to any Hazardous Materials, (d) the release or threatened release of any Hazardous Materials into the environment or (e) any contract,
agreement or other consensual arrangement pursuant to which liability is assumed or imposed with respect to any of the foregoing. 
 “Environmental Permit” means any permit, approval, identification number, license or other authorization required under any Environmental Law. 

“Events of Default” has the meaning specified in Section 7.01. 

“Excess Availability” means, at any time, an amount equal to (a) the Line Cap, minus
(b) the Total Extensions of Credit. 
 “Excluded Accounts” means payroll, trust and tax
withholding accounts funded in the ordinary course of business, and accounts which contain only cash and Cash Equivalents subject to a Lien permitted pursuant to clause (k) of the definition of Permitted Liens and Liens permitted pursuant to
Section 6.02(a)(ii). 
 “Existing Letters of Credit” means those letters of credit issued
for the account of the Borrower by Bank of Montreal and set forth on Schedule 1.02 hereto. 

“Extensions of Credit” means as to any Lender at any time, an amount equal to the sum of (a) the
aggregate principal amount of all Revolving Advances held by such Lender then outstanding, (b) such Lender’s Commitment Percentage of the aggregate principal amount of Swingline Advances then outstanding and (c) such Lender’s
Commitment Percentage of the L/C Obligations then outstanding. 
 “Federal Funds Rate” means,
for any period, a fluctuating interest rate per annum equal for each day during such period to the weighted average of the rates on overnight Federal funds transactions with members of the Federal Reserve System arranged by Federal funds brokers, as
published for such day (or, if such day is not a Business Day, for the next preceding Business Day) by the Federal Reserve Bank of New York, or, if such rate is not so published for any day that is a Business Day, the average of the quotations
for such day on such transactions received by the Agent from three Federal funds brokers of recognized standing reasonably selected by it. 

  
 13 

 “Fee Letter” means the Fee Letter dated August 4,
2010, between the Borrower and WFCFC, as amended from time to time. 
 “Fixed Charge Ratio”
means, the ratio, determined as of the end of each fiscal quarter of the Borrower for the most recently ended four fiscal quarters, of (a) Consolidated EBITDA minus the unfinanced portion of Capital Expenditures (but including Capital
Expenditures financed with proceeds of Advances hereunder) minus taxes paid in cash net of refunds, to (b) Fixed Charges, all calculated on a Consolidated basis in accordance with GAAP. 

“Fixed Charges” means, with reference to any period, without duplication, Consolidated Interest Expense
paid or payable in cash, plus scheduled principal payments on Debt made during such period (other than any such principal payment made with proceeds of Debt incurred to refinance, replace or refund the entire outstanding principal amount of
such Debt), plus Capital Lease Obligation payments made during such period, all calculated on a Consolidated basis; provided that Fixed Charges shall not include any principal amounts paid on or before the applicable maturity date of
(a) the Borrower’s 7.45% Medium Term Notes due May 10, 2010 in the aggregate principal amount of CAN$200,000,000 prior to the Effective Date, or (b) the Senior Notes. 

“FSCO” means the Financial Services Commission of Ontario and any Person succeeding to the functions
thereof and includes the Superintendent under such statute and any other Governmental Authority empowered or created by the Supplemental Pensions Act (Québec) or the Pension Benefits Act (Ontario) or any Governmental Authority
of any other Canadian jurisdiction exercising similar functions in respect of any Canadian Pension Plan of the Loan Parties or any of their Subsidiaries and any Governmental Authority succeeding to the functions thereof. 

“Foreign Vendor” means a Person that sells In-Transit Inventory to a Loan Party. 

“Fund” means any Person (other than a natural person) that is (or will be) engaged in making,
purchasing, holding or otherwise investing in commercial loans and similar extensions of credit in the ordinary course of its business. 
 “GAAP” has the meaning specified in Section 1.03. 
 “GE Fee Letter” means the commitment letter dated August 13, 2010, between the Borrower and GE Canada Finance Holding Company. 

“Gift Card Liability Reserve” shall mean, at any time, and without duplication of any other Availability
Reserves or Inventory Reserves, a reserve equal to the aggregate remaining value at such time of outstanding gift certificates and gift cards of the Loan Parties entitling the holder thereof to use all or a portion of the certificate or gift card to
pay all or a portion of the purchase price for any Inventory. 
 “Governmental Authority” means
any nation or government, any provincial or other political subdivision thereof, any agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or
administrative functions of or pertaining to government, any securities exchange and any self-regulatory organization. 
 “Group Members” means, collectively, the Borrower and its Subsidiaries. 
 “Guarantee and Collateral Agreement” means the Guarantee and Collateral Agreement to be executed and delivered by the Loan Parties, substantially in the form of Exhibit D.

 “Hazardous Materials” means (a) petroleum and petroleum products, byproducts or
breakdown products, radioactive materials, asbestos-containing materials, polychlorinated biphenyls and radon gas and (b) any other chemicals, materials or substances designated, classified or regulated as hazardous or toxic or as a pollutant
or contaminant under any Environmental Law. 

  
 14 

 “IFRS” means the International Financial Reporting
Standards, namely, the standards, interpretations and the framework for the preparation and presentation of financial statements (in the absence of a standard or interpretation) adopted by the International Accounting Standards Board. 

“In-Transit Inventory” means Inventory of a Loan Party which is in the possession of a common carrier
and is in transit from a Foreign Vendor of a Loan Party from a location outside of Canada to a location of a Loan Party that is within Canada. 
 “Increase Effective Date” shall have the meaning provided therefor in Section 2.18(e). 
 “Intellectual Property” has the meaning set forth in the Guarantee and Collateral Agreement. 
 “Interest Period” means, for each BA Rate Advance and LIBOR Rate Advance comprising part of the same Borrowing of Revolving Advances, the period commencing on the date of such BA Rate
Advance or LIBOR Rate Advance or the date of the Conversion of any Base Rate Advance or Prime Rate Advance into such BA Rate Advance or LIBOR Rate Advance, as applicable, and ending on the last day of the period selected by the Borrower pursuant to
the provisions below and, thereafter, each subsequent period commencing on the last day of the immediately preceding Interest Period and ending on the last day of the period selected by the Borrower pursuant to the provisions below. The duration of
each such Interest Period shall be one, two or three months, as the Borrower may, upon notice received by the Agent not later than 12:00 noon on the third Business Day prior to the first day of such Interest Period, select; provided,
however, that: 
 (a) the Borrower may not select any Interest Period that ends after the Termination
Date; 
 (b) Interest Periods commencing on the same date for BA Rate Advances or LIBOR Rate Advances comprising
part of the same Borrowing shall be of the same duration; 
 (c) with respect to LIBOR Rate Advances (and BA
Rate Advances, to the extent applicable), whenever the last day of any Interest Period would otherwise occur on a day other than a Business Day, the last day of such Interest Period shall be extended to occur on the next succeeding Business Day;
provided, however, that, if such extension would cause the last day of such Interest Period of one month or longer to occur in the next following calendar month, the last day of such Interest Period shall occur on the next preceding
Business Day; and 
 (d) with respect to LIBOR Rate Advances, whenever the first day of any Interest Period
occurs on a day of a calendar month for which there is no numerically corresponding day in the calendar month that succeeds such initial calendar month by the number of months equal to the number of months in such Interest Period, such Interest
Period shall end on the last Business Day of such succeeding calendar month. 
 “Inventory” as
defined in the PPSA. 
 “Inventory Reserves” means, as of the Effective Date, reserves for
shrink, consignment inventory, Corbeil franchise floor plan inventory, and damaged inventory; and thereafter such reserves as the Agent may establish in its Permitted Discretion. 

“Inventory Value” shall mean, with respect to any Inventory of the Loan Parties, the value of such
Inventory valued at the lower of cost or market value on a basis consistent with the Loan Parties’ current and historical accounting practice in effect on the Effective Date, per the stockledger (without giving effect

  
 15 

 
to LIFO reserves and general ledger reserves for discontinued inventory, markdowns, intercompany profit, rebates and discounts, any cut off adjustments, revaluation adjustments, purchase price
adjustments or adjustments with respect to the capitalization of buying, occupancy, distribution and other overhead costs reflected on the balance sheet of the Loan Parties in respect of Inventory). The value of the Inventory as set forth above
will, without duplication for any Inventory Reserves, be calculated net of the reserve established by the Loan Parties on a basis consistent with the Loan Parties’ current and historical practice, in effect on the Effective Date, in respect of
lost, misplaced or stolen Inventory at such time. 
 “Investment” means, as to any Person, any
direct or indirect acquisition or investment by such Person, whether by means of (a) the purchase or other acquisition of equity interests of another Person, (b) a loan, advance or capital contribution to, guarantee or assumption of debt
of, or purchase or other acquisition of any other debt or interest in, another Person, or (c) any Acquisition. 
 “ITA” means the Income Tax Act (Canada). 

“L/C Issuing Bank” means (a) any bank or financial institution acceptable to Agent in its sole
discretion, from time to time, it being understood that with the consent of the Borrower (not to be unreasonably withheld) the L/C Issuing Bank may arrange for one or more Letters of Credit to be issued by Affiliates of the L/C Issuing Bank, in
which case the term “L/C Issuing Bank” shall include any such affiliate with respect to Letters of Credit issued by such Affiliate, and (b) with respect to the Existing Letters of Credit and until such Existing Letters of Credit
expire or are returned undrawn, Bank of Montreal. 
 “L/C Commitment” means CAN$100,000,000.

 “L/C Obligations” means at any time, an amount equal to the sum of (a) the aggregate
then undrawn and unexpired amount of the then outstanding Letters of Credit and (b) the aggregate amount of drawings under Letters of Credit that have not then been reimbursed or discharged pursuant to Section 3.05 (after giving effect to
the proviso thereof). 
 “Lenders” means, collectively, the Persons signatory hereto as a
Lender, and each Person that shall become a party hereto as a lender pursuant to Section 9.07. 

“Letters of Credit” means the collective reference to Commercial L/Cs and Standby L/Cs; individually, a
“Letter of Credit”, and includes the Existing Letters of Credit. 
 “LIBOR
Rate” means for any Interest Period with respect to a LIBOR Rate Advance, the rate per annum equal to the British Bankers Association LIBOR Rate (“BBA LIBOR”), as published by Reuters (or other commercially available source
providing quotations of BBA LIBOR as designated by the Agent from time to time) at approximately 11:00 a.m., London time, two Business Days prior to the commencement of such Interest Period, for Dollar deposits (for delivery on the first day of such
Interest Period) with a term equivalent to such Interest Period. If such rate is not available at such time for any reason, then the “LIBOR Rate” for such Interest Period shall be the rate per annum determined by the Agent to be the rate
at which deposits in Dollars for delivery on the first day of such Interest Period in same day funds in the approximate amount of the LIBOR Rate Advance being made, continued or converted and with a term equivalent to such Interest Period would be
offered to major banks in the London interbank eurodollar market at their request at approximately 11:00 a.m. (London time) two Business Days prior to the commencement of such Interest Period. 

“LIBOR Rate Advance” means an Advance that bears interest at a rate based on the Adjusted LIBOR Rate.

 “Lien” means any lien, security interest, hypothec or other charge or encumbrance of any
kind or any other type of preferential arrangement, including the lien or retained security title of a conditional vendor, and any easement, right of way or other encumbrance on title to real property, but excluding consignments or bailments of
goods of third parties and the interests of lessors under operating leases. 

  
 16 

 “Line Cap” means, at any time of determination, the lesser
of (i) the Aggregate Commitments, and (ii) the Borrowing Base. 
 “Liquidation” means
the exercise by the Agent of those rights and remedies accorded to the Agent under the Loan Documents and applicable law as a creditor of the Loan Parties with respect to the realization on the Collateral, including (after the occurrence and
continuation of an Event of Default) the conduct by the Loan Parties acting with the consent of the Agent, of any public, private or “going-out-of-business”, “store closing” or other similar sale or any other disposition of the
Collateral for the purpose of liquidating the Collateral. 
 “Loan Documents” means this
Agreement, the Security Documents, the Notes, the Fee Letter, the Co-Collateral Agent Rights Agreement, any Application, and any amendment, waiver, supplement or other modification to any of the foregoing. 

“Loan Parties” means each Group Member that is a party to a Loan Document. 

“Material Adverse Effect” means a material adverse effect on (a) the business, condition (financial
or otherwise), operations or assets of the Borrower and its Subsidiaries taken as a whole, or (b) the ability of the Loan Parties taken as a whole to perform their material obligations under the Loan Documents or (c) the validity or
enforceability of the Loan Documents taken as a whole or the rights and remedies of the Agent or the Lenders thereunder taken as a whole (including, but not limited to, the enforceability or priority of any Liens granted to the Agent under the Loan
Documents). 
 “Material Contract” means, with respect to the Loan Parties, (i) the
Agreement dated January 26, 1987 between the Borrower and Sears, Roebuck and Co. relating to the use by the Borrower, in the ordinary course of the Borrower’s business, of certain trademarks and other intellectual property owned by Sears,
Roebuck and Co., and any successor agreement thereto, and (ii) any other agreement, the failure of which to maintain would reasonably be expected to have a Material Adverse Effect. 

“Net Eligible Inventory” means, at any time, an amount equal to the Inventory Value of Eligible
Inventory less Inventory Reserves. 
 “Net Proceeds” means, (a) with respect to any
Disposition by any Loan Party or any of its Subsidiaries of any property or any casualty or condemnation of such property, the excess, if any, of (i) the sum of cash and Cash Equivalents received in such transaction (including any cash or Cash
Equivalents received by way of deferred payment pursuant to, or by monetization of, a note receivable or otherwise, but only as and when so received) over (ii) the sum of (A) the principal amount of any Debt that is secured by the
applicable asset by a Lien permitted hereunder which is senior to the Agent’s Lien, if any, on such asset and that is required to be repaid (or to establish an escrow for the future repayment thereof) in connection with such transaction (other
than Debt under the Loan Documents), (B) the reasonable and customary out-of-pocket expenses incurred by such Loan Party or such Subsidiary in connection with such transaction (including, without limitation, attorneys’ fees,
accountants’ fees, investment banking fees, appraisals, and brokerage, legal, title and recording or transfer tax expenses and commissions) paid by any Loan Party to third parties (other than Affiliates), (C) transfer Taxes paid as a
result thereof, and (b) the excess of (i) the sum of the cash and Cash Equivalents received in connection with the issuance of any equity interests of any Loan Party or any Permitted Refinancing Debt over (ii) the underwriting
discounts and commissions, and other reasonable and customary out-of-pocket expenses, incurred by such Loan Party in connection therewith. 
 “Net Orderly Liquidation Value” means the product of (i) Net Recovery Rate and (ii) the Net Eligible Inventory. 

  
 17 

 “Net Recovery Rate” means the appraised orderly liquidation
value (on an “as is, where is” basis) of each Loan Party’s Eligible Inventory, net of costs and expenses estimated to be incurred in connection with such liquidation, which value is expressed as a percentage of the Inventory Value of
Eligible Inventory and shall be determined by the Agent from time to time based on the most recent appraisal provided by an independent third party appraiser retained by the Agent in consultation with the Borrower. 

“Non-Consenting Lender” has the meaning specified in Section 9.16. 

“Note” means a promissory note of the Borrower payable to the order of any Lender evidencing the
Commitment of such Lender. 
 “Notice of Borrowing” has the meaning specified in
Section 2.02(a). 
 “Obligations” has the meaning set forth in the Guarantee and
Collateral Agreement. 
 “Other Taxes” has the meaning specified in Section 2.15.

 “Overadvance” means any Advance to the extent that, immediately after its having been made,
Excess Availability is less than zero. 
 “Parent” means Sears Holdings Corporation.

 “Perfection Certificate” means a certificate with respect to the Borrower and the other Loan
Parties in form reasonably satisfactory to the Agent. 
 “Permitted Acquisition” means any
Acquisition permitted under Section 6.02(c). 
 “Permitted Debt” means each of the
following as long as no Default or Event of Default exists at the time of incurrence thereof or would arise from the incurrence thereof: 
 (a) Debt outstanding on the date hereof and listed in the Perfection Certificate; 
 (b) Debt of any Loan Party to any other Loan Party; 
 (c) Debt of
any Subsidiary of the Borrower which is not a Loan Party to any Loan Party; provided, that (1) such Debt is incurred in the ordinary course of business consistent with past practices, (2) such Debt shall not exceed CAN$100,000,000 in the
aggregate at any one time outstanding, or (3) (i) at the time of incurrence of any such Debt and immediately after giving pro forma effect thereto, no Default or Event of Default shall have occurred and be continuing, and (ii) after
giving effect to any such Debt (A) the Pro Forma and Projected Excess Availability is at least 20% of the Line Cap, and (B) the Pro Forma Fixed Charge Ratio shall be at least 1.1 to 1.0; 

(d) Debt of any Group Member to any Subsidiary of the Borrower which is not a Loan Party; 

(e)(i) purchase money Debt used to finance the acquisition of any fixed or capital assets, including Capital Lease
Obligations, and any Debt assumed in connection with the acquisition of any such assets or secured solely by a Lien on any such assets prior to the acquisition thereof, and (ii) Debt incurred in connection with sale-leaseback transactions with
respect to assets not constituting Collateral; 
 (f) Debt of any Person that becomes a Subsidiary in an
Acquisition permitted in accordance with Section 6.02(c), which Debt is existing at the time such Person becomes a Subsidiary (other than Debt incurred solely in contemplation of such Person’s becoming a Subsidiary); 

  
 18 

 (g) the Obligations; 

(h) Debt described in Section 6.02(a)(vi), provided, that such Debt (i) does not have a maturity
date which is earlier than the Termination Date, (ii) is incurred on arm’s-length terms, (iii) is subject to an intercreditor agreement in such form and containing such terms as provided for in Section 6.02(a)(vi), and
(iv) the security documents, if any, with respect to such Debt are reasonably satisfactory to the Agent in its Permitted Discretion; 
 (i) any other Debt, provided, that such Debt (i) does not require the repayment of principal prior to the Termination Date in excess of 1.0% of the original principal amount thereof per
annum (or with respect to Debt constituting real estate financing (whether directly through a mortgage or indirectly through a pledge of the equity of a Subsidiary or joint venture), in excess of 5.0% of the original principal amount thereof per
annum) (excluding, in each case, for the avoidance of doubt, repayments required as a result of the sale of assets and repayments required in connection with an event that would constitute an Event of Default under Section 7.01(g) hereof)
(ii) does not have a maturity date which is earlier than the Termination Date, and (iii) is incurred on arm’s-length terms; 
 (j) Debt in respect of performance bonds, bid bonds, appeal bonds, surety bonds and completion guarantees and similar obligations, in each case provided in the ordinary course of business, including those
incurred to secure health, safety and environmental obligations in the ordinary course of business; 
 (k) Debt
arising from overdraft facilities and/or the honoring by a bank or other financial institution of a cheque, draft or similar instrument drawn against insufficient funds in the ordinary course of business or other cash management services (including,
but not limited to, intraday, ACH and purchasing card/T&E services) in the ordinary course of business; provided, that (x) such Debt (other than credit or purchase cards) is extinguished within ten Business Days of notification to
the applicable Loan Party of its incurrence and (y) such Debt in respect of credit or purchase cards is extinguished within 60 days from its incurrence; 

(l) Debt arising from agreements of the Borrower or any Subsidiary providing for indemnification, adjustment of purchase
or acquisition price or similar obligations, in each case, incurred or assumed in connection with any Permitted Acquisition or the disposition of any business, assets or any Subsidiary not prohibited by this Agreement, other than guarantees of Debt
incurred by any Person acquiring all or any portion of such business, assets or any Subsidiary for the purpose of financing such Acquisition; 
 (m) Debt consisting of the financing of insurance premiums in the ordinary course of business; 
 (n) Debt not otherwise incurred under any other clause of this definition not in excess of CAN$100,000,000 in the aggregate outstanding at any time; 

(o) Debt of the type specified in clause (g) of the definition thereof to the extent such Debt constitutes a
Permitted Investment; and 
 (p) Permitted Refinancing Debt. 

“Permitted Discretion” means a determination made in good faith and in the exercise of commercially
reasonable business judgment. 
 “Permitted Dispositions” means any of the following:

 (a) transfers and Dispositions of Inventory in the ordinary course of business; 

  
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 (b) transfers and Dispositions among the Loan Parties; 

(c) transfers and Dispositions by any Subsidiary of the Borrower which is not a Loan Party to any Loan Party; 

(d) transfers and Dispositions by any Subsidiary of the Borrower which is not a Loan Party to other Subsidiaries which
are not Loan Parties; 
 (e) transfers and Dispositions (other than transfers and Dispositions of Inventory,
Credit Card Accounts Receivable or any other Collateral (as defined in the Guarantee and Collateral Agreement on the Effective Date)) to any Subsidiary of the Borrower which is not a Loan Party by any Loan Party provided, that any such
Disposition shall be (i) undertaken in the ordinary course of business or (ii) on terms that are fair and reasonable and no less favorable to the Loan Party than it would obtain in a comparable arm’s length transaction with a Person
that is not a Subsidiary of the Borrower; and further provided that any such Disposition of Related Intellectual Property (and licenses thereof in favor of any Loan Party) shall be subject to the rights of the Loan Parties and the Agent
(without payment of any royalties) to use such Related Intellectual Property and licenses in the conduct of their business or in connection with the Disposition of the Collateral, as applicable, and the transferee shall have entered into an
agreement on terms reasonably satisfactory to the Agent relating thereto; 
 (f) the sale of surplus, obsolete
or worn out equipment or other property in the ordinary course of business by the Borrower or any Subsidiary; 

(g)(i) transfers and Dispositions of Inventory outside of the ordinary course of business in an amount not to exceed
CAN$5,000,000 in any fiscal year, and (ii) other transfers and Dispositions of all or any portion of any Loan Party’s assets, excluding any Intellectual Property (and licenses thereof in favor of any Loan Party) which is material and
necessary to the operation of the Loan Parties’ business, and any Collateral (as defined in the Guarantee and Collateral Agreement) but including any equity interests of its Subsidiaries, provided, that immediately after giving effect to
any such disposition set forth in clause (ii) above, (i) no Default or Event of Default then exists, and (ii) either (A) the Pro Forma and Projected Excess Availability is at least 15% of the Line Cap, or (B) such Loan Party
uses the Net Proceeds of such Disposition to repay Advances in an amount equal to the lesser of (x) 100% of such Net Proceeds and (y) an amount sufficient to cause Pro Forma and Projected Excess Availability to be 15% or more of the Line
Cap, and (iii) if the Disposition is to a Subsidiary or Affiliate of a Loan Party which is not a Loan Party, such Disposition shall be on terms that are fair and reasonable and no less favorable to the Loan Party than it would obtain in a
comparable arm’s length transaction with a Person that is not a Subsidiary or Affiliate of a Loan Party; 

(h) transfers and Dispositions which constitute Restricted Payments, that are otherwise permitted hereunder; 

(i) Dispositions permitted pursuant to Section 6.02(b) hereof; 

(j) the sale of Policy Investments in the ordinary course of business; 

(k) the sale or Disposition of defaulted receivables and the compromise, settlement and collection of receivables in the
ordinary course of business or in bankruptcy or other proceedings concerning the other account party thereon and not as part of an accounts receivable financing transaction; 

(l) leases, licenses or subleases or sublicenses of any real or personal property not constituting Collateral in the
ordinary course of business; provided that any such licenses or sublicenses of Intellectual Property shall be subject to the Agent’s rights to utilize same in connection with the realization upon any Collateral; 

  
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 (m) any surrender or waiver of contract rights or the settlement, release,
recovery on or surrender of contract, tort or other claims of any kind (other than, in each case, with respect to rights to license the Related Intellectual Property, unless the limited license granted to the Agent in such Related Intellectual
Property pursuant to the Loan Documents remains in effect and is acknowledged by the licensee) to the extent that any of the foregoing could not reasonably be expected to have a Material Adverse Effect; 

(n) sales of Inventory (other than Eligible Inventory) determined by the management of the applicable Loan Party not to
be saleable in the ordinary course of business of such Loan Party or any of the Loan Parties; and 
 (o)
transfers of assets, including Inventory, in connection with Store closings (and/or department closings within Stores) permitted pursuant to Section 6.02(k). 

“Permitted Holder Lender” means ESL Investments, Inc. and any of its Affiliates other than a Group
Member, provided, that, such Person executes a waiver in form and substance reasonably satisfactory to the Agent that it shall have no right whatsoever with respect to that portion of the Commitments which it holds (a) to consent
to any amendment, modification, waiver, consent or other such action with respect to any of the terms of any Loan Document, (b) otherwise to vote on any matter related to any Loan Document, (c) to require the Agent or any Lender to
undertake any action (or refrain from taking any action) with respect to any Loan Document, (d) to attend any meeting with the Agent or any Lender or receive any information from the Agent or any Lender, (e) to the benefit of any advice
provided by counsel to the Agent or the other Lenders or to challenge the attorney-client privilege of the communications between the Agent, such other Lenders and such counsel, or (f) make or bring any claim, in its capacity as Lender, against
the Agent with respect to the fiduciary duties of the Agent or Lenders and the other duties and obligations of the Agent hereunder; except, that, no amendment, modification or waiver to any Loan Document shall, without such Permitted Holder
Lender’s consent, deprive any Permitted Holder Lender of its pro rata share of any payments to which the Lenders as a group are otherwise entitled hereunder or otherwise single out, or intentionally discriminate against the Permitted Holder
Lender, as such. 
 “Permitted Investments” means each of the following as long as no Default
or Event of Default exists at the time of the making such of Investment or would arise from the making of such Investment: 
 (a) Investments existing on, or contractually committed as of, the Effective Date, and set forth in the Perfection Certificate; 

(b)(i) Investments by any Loan Party and its Subsidiaries in their respective Subsidiaries outstanding on the Effective
Date, (ii) Investments by any Loan Party and its Subsidiaries in Loan Parties (provided that until such time as Corbeil guarantees the full amount of the Obligations and shall have delivered such legal opinions and executed such other
Loan Documents as the Agent may reasonably require in connection with such guarantee, all in form and substance satisfactory to the Agent, any such Investments made in Corbeil shall not exceed CAN$40,000,000 at any time outstanding), and
(iii) Investments by Subsidiaries that are not Loan Parties in Holdings or any Subsidiary; 
 (c) other
Investments of any Loan Party in any other Subsidiary of the Borrower which is not a Loan Party (including, without limitation, intercompany loans made to any such Subsidiary); provided, that (1) such Investment is incurred in the
ordinary course of business consistent with past practices, (2) such Investments shall not exceed CAN$100,000,000 in the aggregate at any one time outstanding or (3) (a) at the time of any such Investment and immediately after giving
pro forma effect thereto, no Default or Event of Default shall have occurred and be continuing, and (b) after giving effect to any such Investment (A) the Pro Forma and Projected Excess Availability is at least 20% of the Line Cap, and
(B) the Pro Forma Fixed Charge Ratio shall be at least 1.1 to 1.0; 

  
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 (d) Investments of any Loan Party in any other Person not constituting an
Acquisition; provided that (a) at the time of any such Investment and immediately after giving pro forma effect thereto, no Default or Event of Default shall have occurred and be continuing, and (b) after giving effect to any such
Investment (A) the Pro Forma and Projected Excess Availability is at least 20% of the Line Cap, and (B) the Pro Forma Fixed Charge Ratio shall be at least 1.1 to 1.0; 

(e) Investments constituting a Permitted Acquisition and Investments held by the Person acquired in such Acquisition at
the time of such Acquisition (and not acquired in contemplation of such Acquisition); 
 (f) Investments arising
out of the receipt of noncash consideration for the sale of assets otherwise permitted under this Agreement; 

(g) Policy Investments; 
 (h) Investments in Swap Contracts entered into in the ordinary course and not for speculative purposes; 
 (i) to the extent not prohibited by applicable law, advances to officers, directors and employees and consultants of the Group Members made for travel, entertainment, relocation and other ordinary
business purposes; 
 (j) Investments received in connection with the bankruptcy or reorganization of, or
settlement of delinquent accounts and disputes with or judgments against, customers and suppliers, in each case in the ordinary course of business or Investments acquired by any Group Member as a result of a foreclosure by any Loan Party with
respect to any secured Investments or other transfer of title with respect to any secured Investment in default; 
 (k) Investments held by any Person at the time such Person is acquired in accordance with Section 6.02(c); 
 (l) Investments made with the common stock of the Borrower as long as no Event of Default will arise directly therefrom (including under Section 7.01(g) hereof); 

(m) accounts receivable, security deposits and prepayments arising and trade credit granted in the ordinary course of
business; 
 (n) Guarantees by the Borrower or any Subsidiary of operating leases (other than Capital Lease
Obligations) or of other obligations that do not constitute Debt, in each case entered into by the Borrower or any Subsidiary in the ordinary course of business; 

(o) advances in the form of a prepayment of expenses, so long as such expenses are being paid in accordance with
customary trade terms of the applicable Group Member; 
 (p) Investments consisting of the licensing or
contribution of Intellectual Property pursuant to joint marketing arrangements with other Persons, provided that no such Investment shall impair in any manner the limited license granted to the Agent in such Intellectual Property pursuant to the
Loan Documents; 
 (q) Investments in joint ventures that own real properties upon which Stores are located
existing as of the Effective Date and entered into hereafter in the ordinary course of business; 
 (r) So long
as no Cash Dominion Event has occurred and is continuing, and so long as no Event of Default has occurred and is continuing or would result therefrom, Investments consisting of (i) loans maturing within 75 days from the date when made by the
Borrower to the Parent or any indirect 

  
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parent of the Borrower in an amount not to exceed, CAN$100,000,000 outstanding at any time, (ii) other loans made by the Borrower to the Parent or any indirect parent of the Borrower so long
as immediately after giving effect to any such loan, on a pro forma basis, (x) Excess Availability is greater than 20% of the Line Cap and (y) the Pro Forma Fixed Charge Ratio is at least 1.1:1.0, and (iii) other loans made by the
Borrower to the Parent or any indirect parent of the Borrower so long as such loans are not made with the proceeds of Revolving Advances; and 
 (s) other Investments in an amount not to exceed CAN$50,000,000 in the aggregate outstanding at any time; provided that no Investment pursuant to this clause (s) shall be made by any Loan
Party in any Subsidiary of the Borrower which is not a Loan Party. 
 “Permitted Liens” means:

 (a) Liens for taxes, assessments and governmental charges or levies not yet due and payable or to the
extent such taxes, assessments or governmental charges are being contested in good faith and by proper proceedings and as to which appropriate reserves are being maintained; 

(b) Liens imposed by law, such as materialmen’s, mechanics’, carriers’, workmen’s and
repairmen’s Liens and other similar Liens arising in the ordinary course of business securing obligations that are not overdue for a period of more than 30 days or that are being contested in good faith by appropriate proceedings and as to
which appropriate reserves are being maintained; 
 (c) (x) landlords’ Liens arising in the ordinary
course of business securing (i) rents not yet due and payable, (ii) rent for Stores in an amount not to exceed the monthly base rent due for the immediately preceding calendar month and (iii) rents for Stores in excess of the amount
set forth in the preceding clause (ii) so long as such amounts are being contested in good faith by appropriate proceedings and as to which appropriate reserves are being maintained and (y) in respect of real property located in the
Province of Quebec, landlords’ Liens securing the payment and performance of all obligations owing under any lease in respect of such property in favor of the landlord thereof; provided that such Liens are limited to the assets located
at such leased property; 
 (d) any attachment or judgment lien not constituting an Event of Default under
Section 7.01(f); 
 (e) Liens presently existing or hereafter created in favor of the Agent, on behalf of
the Credit Parties; 
 (f) Liens arising by the terms of commercial letters of credit entered into in the
ordinary course of business to the extent that such letters of credit are to be issued in a currency other than Canadian Dollars or Dollars or are not otherwise available to be issued as Letters of Credit hereunder, in each case to secure
reimbursement obligations thereunder, provided that such Liens only encumber the title documents and underlying goods relating to such letters of credit; 
 (g) Liens in favor of issuers of credit cards arising in the ordinary course of business securing the obligation to pay customary fees and expenses in connection with credit card arrangements; 

(h) Liens incurred or deposits made by any Group Member in the ordinary course of business in connection with
workers’ compensation, unemployment insurance and other types of social security, or to secure the performance of tenders, statutory obligations, customs and appeal bonds, bids, leases, government contracts, performance and return-of-money
bonds and other similar obligations (exclusive of obligations for the payment of borrowed money); 
 (i)
easements, rights-of-way, covenants, conditions, restrictions (including zoning restrictions), declarations, reservations (including pursuant to any original grant of real property from the 

  
 23 

 
applicable Governmental Authority), licences, encroachments, rights of reverter, minor defects or irregularities in title and other similar charges or encumbrances, whether or not of record, that
do not, in the aggregate, interfere in any material respect with the ordinary course of business, or in respect of any real property which is part of the Collateral, any title defects, liens, charges or encumbrances (other than such prohibited
monetary Liens) which a title insurance company is prepared to endorse or insure by exclusion or affirmative endorsement reasonably acceptable to the Agent and which is included in any applicable title policy; 

(j) any interest or title of a lessor or sublessor under, and Liens arising from precautionary PPSA financing statements
(or equivalent filings, registrations or agreements in foreign jurisdictions) relating to, leases and subleases permitted by this Agreement; 
 (k) Liens on cash and Cash Equivalents securing obligations in respect of standby or trade letters of credit entered into in the ordinary course of business to the extent that such letters of credit are
to be issued in a currency other than Canadian Dollars or Dollars or are not otherwise available to be issued as Letters of Credit hereunder, or trade-related bank guarantees; 

(l) normal and customary rights of setoff upon deposits of cash or other Liens originating solely by virtue of any
statutory or common law provision relating to bankers’ liens, rights of setoff or similar rights in favor of banks or other depository institutions; 
 (m) Liens granted to consignors who have properly perfected on consigned Inventory owned by such consignors and created in the ordinary course of business; 

(n) Liens on premium rebates securing financing arrangements with respect to insurance premiums; 

(o) deposits and other customary Liens to secure the performance of bids, trade contracts (other than for Indebtedness),
leases (other than Capital Lease Obligations), statutory and regulatory obligations, surety, customs and appeal bonds, performance and return of money bonds, bids, leases, government contracts, trade contracts, agreements with utilities, and other
obligations of a like nature incurred in the ordinary course of business, including those incurred to secure health, safety and environmental obligations in the ordinary course of business; 

(p) Liens that are contractual rights of set-off (i) relating to the establishment of depository relations with
banks not given in connection with the issuance of Debt or (ii) relating to pooled deposit or sweep accounts of the Borrower or any Subsidiary to permit satisfaction of overdraft or similar obligations incurred in the ordinary course of
business of the Borrower or any Subsidiary; 
 (q) Liens in favor of customs and revenue authorities arising as
a matter of law to secure payment of customs duties in connection with the importation of goods; 
 (r) Liens
solely on any cash earnest money deposits made by the Borrower or any of its Subsidiaries in connection with any letter of intent or purchase agreement in respect of any Investment permitted hereunder; 

(s) Liens on securities that are the subject of repurchase agreements constituting Policy Investments; and 

(t) Liens on cash and Cash Equivalents securing Swap Contracts incurred in the ordinary course of business; 

(u) other Liens on cash and Cash Equivalents in an amount not to exceed CAN$10,000,000 held by a third party as security
for any obligation (other than Debt); and 

  
 24 

 (v) Liens granted in connection with equipment financing arrangements or
leases on Inventory not constituting goods held by the Borrower or any of its Subsidiaries for sale, but only to the extent such Inventory is provided by the secured party and is related to the equipment subject to such financing arrangement or
lease. 
 “Permitted Overadvance” means an Overadvance made by the Agent, in its Permitted
Discretion, which: 
 (a) is made to maintain, protect or preserve the Collateral and/or the Credit
Parties’ rights under the Loan Documents or which is otherwise for the benefit of the Credit Parties; 

(b) is made to enhance the likelihood of, or to maximize the amount of, repayment of the Obligations; 

(c) is made to pay any other amount chargeable to any Loan Party hereunder; and 

(d) together with all other Permitted Overadvances then outstanding, shall not (i) exceed five percent (5%) of
the Borrowing Base at any time or (ii) unless a Liquidation is occurring, remain outstanding for more than thirty (30) consecutive Business Days, unless in each case, the Required Lenders otherwise agree; 

provided, however, that the foregoing shall not (i) modify or abrogate any of the provisions of Article III regarding
any Lender’s obligations with respect to Letters of Credit, or (ii) result in any claim or liability against the Agent (regardless of the amount of any Overadvance) for “inadvertent Overadvances” (i.e. where an Overadvance
results from changed circumstances beyond the control of the Agent (such as a reduction in the collateral value)), and such “inadvertent Overadvances” shall not reduce the amount of Permitted Overadvances allowed hereunder, and
further, provided, that in no event shall the Agent make an Overadvance, if after giving effect thereto, the principal amount of the Extensions of Credit would exceed the Aggregate Commitments (as in effect prior to any termination of
the Commitments pursuant to Section 2.06 hereof). 
 “Permitted Refinancing Debt” shall
mean any Debt issued in exchange for, or the Net Proceeds of which are used to extend, refinance, renew, replace, defease or refund (collectively, to “Refinance”), the Debt being Refinanced (or previous refinancings thereof
constituting Permitted Refinancing Debt); provided, that (a) the principal amount (or accreted value, if applicable) of such Permitted Refinancing Debt does not exceed the principal amount (or accreted value, if applicable) of the Debt
so Refinanced (plus unpaid accrued interest and premium (including tender premiums) thereon and underwriting discounts, defeasance costs, fees, commissions and expenses), (b) the maturity date of such Permitted Refinancing Debt shall not be
earlier than the maturity date of the Debt being Refinanced and weighted average life to maturity of such Permitted Refinancing Debt shall be greater than or equal to the weighted average life to maturity of the Debt being Refinanced, (c) if
the Debt being Refinanced is subordinated in right of payment to the Obligations under this Agreement, such Permitted Refinancing Debt shall be subordinated in right of payment to such Obligations on terms at least as favorable to the Lenders as
those contained in the documentation governing the Debt being Refinanced, (d) no Permitted Refinancing Debt shall have different obligors, or greater guarantees or security, than the Debt being Refinanced; and (e) the Permitted Refinancing
Debt shall otherwise be on terms which would not reasonably likely result in a Material Adverse Effect. 

“Person” means an individual, partnership, corporation (including a business trust), joint stock
company, trust, unincorporated association, joint venture, limited liability company, unlimited liability corporation, company or other entity, or a government or any political subdivision or agency thereof. 

  
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 “Policy Investments” means Investments made in accordance
with the investment policy of the Loan Parties set forth on Schedule 6.02(k)(ii), as such policy may be amended from time to time with the reasonable consent of the Agent, such consent not to be unreasonably withheld. 

“PPSA” means the Personal Property Security Act (Ontario) and the Regulations thereunder, as from
time to time in effect; provided, however, if attachment, perfection or priority of the Agent’s security interests in any Collateral are governed by the personal property security laws of any jurisdiction other than Ontario (including Quebec),
PPSA shall mean those personal property security laws in such other jurisdiction, including the Civil Code of Quebec, for the purposes of the provisions hereof relating to such attachment, perfection or priority and for the definitions
related to such provisions. 
 “Pricing Grid” means the pricing grid set forth on Schedule
IA. 
 “Prime Rate” means, with respect to any Advance denominated in Dollars, for any day
a fluctuating interest rate per annum equal to the highest of (a) the rate of interest in effect for such day as publicly announced from time to time by Wells Fargo Bank, National Association as its “prime rate”; (b) the Federal
Funds Rate for such day, plus 0.50%; and (c) the LIBOR Rate for a 30 day interest period as determined on such day, plus 1.0%. The “prime rate” is a rate set by Wells Fargo Bank National Association based upon various factors
including its costs and desired return, general economic conditions and other factors, and is used as a reference point for pricing some loans, which may be priced at, above, or below such announced rate. Any change in the prime rate, the Federal
Funds Rate or the LIBOR Rate, respectively, shall take effect at the opening of business on the day specified in the public announcement of such change. 
 “Prime Rate Advance” means an Advance in Dollars that bears interest as provided in Section 2.08(a)(iii). 

“Priority Payables Reserve” means at any time, without duplication, the obligations, liabilities and
indebtedness at such time which have (or would in a bankruptcy or receivership proceeding have) a trust, deemed trust, right of garnishment, right of distress, charge or statutory lien imposed to provide for payment or Liens ranking or capable of
ranking senior to or pari passu with Liens securing the Obligations on any of the Collateral under federal, provincial, state, county, municipal, or local law including, to the extent that there is such a trust, statutory Liens or Liens in
respect of the specified item that has or is capable of having such rank, claims for unremitted and accelerated rents, utilities, taxes (including sales taxes and goods and services taxes (“GST”) and harmonized sales taxes
(“HST”) net of input tax credits deducted in calculating the amount of GST and HST payable), the claims of a clerk, servant, travelling salesperson, labourer or worker (whether full-time or part-time) who is owed wages, salaries,
commissions, disbursements, compensation or other amounts (such as union dues payable on behalf of employees) by the Loan Parties (but only to the extent that the claims of such parties may rank or be capable of ranking senior to or pari passu with
Liens securing the Obligations on any of the Collateral pursuant to Section 81.3 or 81.4 of the BIA or any applicable provincial law), vacation pay, severance pay, employee source deductions, workers’ compensation
obligations, government royalties or pension fund obligations (including claims of FSCO) (but only to the extent ranking or capable of ranking senior to or pari passu with Liens securing the Obligations on any of the Collateral pursuant to
Section 81.5 or Section 81.6 of the BIA or any applicable provincial law), in each case net of the aggregate amount of all restricted cash set aside and readily available for the payment of such obligations pursuant to
arrangements satisfactory to the Agent, together with the aggregate value, determined in accordance with GAAP, of all Eligible Inventory which may be or may become subject to a right of a supplier to recover possession thereof or to exercise rights
of revendication with respect thereto under any federal, provincial, state, county, municipal, or local law, where such supplier’s right may have priority over Liens securing the Obligations including Eligible Inventory subject to a right of a
supplier to repossess goods pursuant to Section 81.1 of the BIA or the Civil Code of Quebec. 

  
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 “Proceeds of Crime Act” means the Proceeds of Crime (Money
Laundering) and Terrorist Financing Act (Canada). 
 “Pro Forma and Projected Excess
Availability” shall mean, for any date of calculation, after giving effect to the applicable transaction or payment, the pro forma and projected Excess Availability for the subsequent twelve (12) fiscal month period, determined as of
the last day of each fiscal month in such period and based on the Borrower’s good faith projections that are used to run the business of the Borrower and prepared in accordance with past practices. With respect to any such transaction or
payment for which either (x) the applicable Loan Party would be required under its corporate governing documents or internal policies and procedures to obtain the approval of such Loan Party’s applicable board of directors or similar
governing body to make such payment or undertake such transaction, (y) the transaction or payment is in an amount greater than or equal to $50,000,000; or (z) the making of such payment or the consummation of such transaction would cause
the Pro Forma and Projected Excess Availability to be equal to or less than 20% of the Line Cap , such projections shall be delivered to the Agent no less than (i) with respect to clause (x) above, one (1) Business Day prior to the
meeting of a Loan Party’s applicable board of directors or similar governing body to approve such transaction or payment, and (ii) with respect to clauses (y) and (z) above, one (1) Business Day prior to making such payment
or undertaking such transaction. 
 “Pro Forma Fixed Charge Ratio” shall mean, for any date of
calculation, the Fixed Charge Ratio as of the last day of the most recently completed fiscal quarter for which financial statements pursuant to Section 6.01(j) are available (the “Reference Date”), after giving pro forma effect
to any applicable transaction or payment as if such transaction or payment had occurred on the first day of the four fiscal quarter period ending on the Reference Date. With respect to any such transaction or payment for which either (x) the
applicable Loan Party would be required under its corporate governing documents or internal policies and procedures to obtain the approval of such Loan Party’s applicable board of directors or similar governing body to make such payment or
undertake such transaction, (y) the transaction or payment is in an amount greater than or equal to $50,000,000; or (z) the making of such payment or the consummation of such transaction would cause the Pro Forma and Projected Excess
Availability to be equal to or less than 20% of the Line Cap , such projections shall be delivered to the Agent no less than (i) with respect to clause (x) above, one (1) Business Day prior to the meeting of a Loan Party’s
applicable board of directors or similar governing body to approve such transaction or payment, and (ii) with respect to clauses (y) and (z) above, one (1) Business Day prior to making such payment or undertaking such
transaction. 
 “Refunded Swingline Advances” has the meaning specified in
Section 2.04(b). 
 “Register” has the meaning specified in Section 9.07(d).

 “Reimbursement Obligation” means the obligation of the Borrower to reimburse the L/C Issuing
Bank pursuant to Section 3.05 for amounts drawn under Letters of Credit. 
 “Related Intellectual
Property” means such rights with respect to the Intellectual Property of the Borrower and its Subsidiaries as are reasonably necessary to permit the Agent to enforce its rights and remedies under the Loan Documents with respect to the
Collateral. 
 “Required Lenders” means, at any time, the holders of more than 50% of the
Commitments then in effect or, if the Commitments have been terminated, the holders of more than 50% of the Total Extensions of Credit then outstanding. 
 “Requirements of Law” means as to any Person, the Certificate of Incorporation and By-Laws or other organizational or governing documents of such Person, and any law, treaty, rule or
regulation or determination of an arbitrator or a court or other Governmental Authority, in each case applicable to or binding upon such Person or any of its property or to which such Person or any of its property is subject. 

  
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 “Reserve Notice Period” means one day prior notice to the
Borrower, unless a Cash Dominion Event has occurred and is continuing, in which case the Reserve Notice Period shall mean any notice period (including no notice) determined by the Agent in its Permitted Discretion to be necessary or desirable to
protect the interests of the Credit Parties. 
 “Restricted Payment” means any dividend or
other distribution (whether in cash, securities or other property) with respect to any equity interests in the Borrower or any Subsidiary of the Borrower, or any payment (whether in cash, securities or other property), including any sinking fund or
similar deposit, on account of the purchase, redemption, retirement, acquisition, cancellation or termination of any such equity interests in the Borrower or any Subsidiary of the Borrower or any option, warrant or other right to acquire any such
equity interests in the Borrower or any Subsidiary of the Borrower. 
 “Revolving Advance” has
the meaning specified in Section 2.01. A Revolving Advance may be a Base Rate Advance, a Prime Rate Advance, a BA Rate Advance or a LIBOR Rate Advance (each of which shall be a “Type” of Revolving Advance). 

“Security Documents” means the collective reference to the Guarantee and Collateral Agreement, the deed
of hypothec charging the universality of moveable property granted by certain of the Loan Parties in favor of the Agent, and all other security documents hereafter delivered to the Agent granting a Lien on any property of any Person to secure the
obligations and liabilities of any Loan Party under any Loan Document. 
 “Senior Notes” means
the 7.05% Medium Term Notes due September 20, 2010 in the aggregate principal amount of CAN$100,000,000 issued by the Borrower. 
 “Solvent” means, when used with respect to any Person, that, as of any date of determination, (a) the aggregate of the property of such Person as of such date is at a fair valuation,
sufficient, or, if disposed of at a fairly conducted sale under legal process, would be sufficient to enable payment of the amount of all obligations due and accruing due of such Person, determined in accordance with applicable federal and
provincial laws governing determinations of the insolvency of debtors, (b) such Person has not ceased paying its current obligations in the ordinary course of business as they generally become due, and (c) such Person is able to “meet
its obligations as they generally become due”. 
 “Standby L/C” means an irrevocable
letter of credit or similar instrument under which the L/C Issuing Bank agrees to make payments in Canadian Dollars or Dollars for the account of the Borrower, on behalf of any Group Member in respect of obligations of such Group Member incurred
pursuant to contracts made or performances undertaken or to be undertaken or like matters relating to contracts to which such Group Member is or proposes to become a party, including, without limiting the foregoing, for insurance purposes or in
respect of advance payments or as bid or performance bonds or for any other purpose for which a standby letter of credit might be issued. 
 “Statutory Reserve Rate” means a fraction (expressed as a decimal), the numerator of which is the number one and the denominator of which is the number one minus the aggregate of the
maximum reserve percentages (including any marginal, special, emergency or supplemental reserves) expressed as a decimal established by the Federal Reserve Board of the United States with respect to the Adjusted LIBOR Rate, for eurocurrency
funding (currently referred to as “Eurocurrency Liabilities” in Regulation D of the Federal Reserve Board). Such reserve percentages shall include those imposed pursuant to such Regulation D. Revolving Advances based on the LIBOR
Rate shall be deemed to constitute eurocurrency funding and to be subject to such reserve requirements without benefit of or credit for proration, exemptions or offsets that may be available from time to time to any Lender under such
Regulation D or any comparable regulation. The Statutory Reserve Rate shall be adjusted automatically on and as of the effective date of any change in any reserve percentage. 

“Store” means any store owned or leased and operated by any Loan Party. 

  
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 “Store Closure Sale” means a store closure sale that, if
including more than ten (10) stores (whether in one transaction or a series of related transactions), is properly managed by an independent, nationally recognized, professional retail inventory liquidation firm reasonably acceptable to the
Agent, over a defined period that is anticipated by the Borrower not to exceed 12 weeks (on average) from the date of the same commencement. 
 “Subsidiary” of any Person means any corporation, partnership, joint venture, limited liability company, trust or estate of which (or in which) more than 50% of the issued and outstanding
capital stock or other equity interest having ordinary voting power to elect a majority of the Board of Directors or other governing body of such corporation, partnership, joint venture, limited liability company, trust or estate (irrespective of
whether at the time capital stock or other equity interests of any other class or classes of such corporation, partnership, joint venture, limited liability company, trust or estate shall or might have voting power upon the occurrence of any
contingency), is at the time directly or indirectly owned by such Person, by such Person and one or more of its other Subsidiaries or by one or more of such Person’s other Subsidiaries. 

“Subsidiary Guarantor” means each direct and indirect wholly owned Subsidiary of the Borrower that owns
Inventory, Credit Card Accounts Receivable, or other Collateral (as defined in the Guarantee and Collateral Agreement). 
 “Supermajority Lenders” means, at any time, the holders of 66-2/3% or more of Commitments then in effect or, if the Commitments have been terminated, the holders of 66-2/3% or more of the
Total Extensions of Credit then outstanding. 
 “Swap Contract” means (a) any and all rate
swap transactions, basis swaps, credit derivative transactions, forward rate transactions, commodity swaps, commodity options, forward commodity contracts, equity or equity index swaps or options, bond or bond price or bond index swaps or options or
forward bond or forward bond price or forward bond index transactions, interest rate options, forward foreign exchange transactions, cap transactions, floor transactions, collar transactions, currency swap transactions, cross-currency rate swap
transactions, currency options, spot contracts, or any other similar transactions or any combination of any of the foregoing (including any options to enter into any of the foregoing), whether or not any such transaction is governed by or subject to
any master agreement, and (b) any and all transactions of any kind, and the related confirmations, which are subject to the terms and conditions of, or governed by, any form of master agreement published by the International Swaps and
Derivatives Association, Inc., any International Foreign Exchange Master Agreement, or any other master agreement (any such master agreement, together with any related schedules, a “Master Agreement”), including any such obligations
or liabilities under any Master Agreement. 
 “Swingline Advances” has the meaning specified in
Section 2.03. 
 “Swingline Commitment” means the obligation of the Swingline Lender to
make Swingline Advances pursuant to Section 2.03 in an aggregate principal amount at any one time outstanding not to exceed CAN$100,000,000. 
 “Swingline Lender” means WFCFC, in its capacity as the lender of Swingline Advances, and includes any successor in such capacity. 

“Swingline Participation Amount” has the meaning specified in Section 2.04(c). 

“Taxes” has the meaning specified in Section 2.15. 

“Termination Date” means the earlier of (a) September 10, 2015 and (ii) the date of
termination in whole of the Commitments pursuant to Section 2.06 or 7.01. 

  
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 “Total Extensions of Credit” means at any time, the
aggregate amount of the Extensions of Credit of the Lenders outstanding at such time. 
 “Type”
means either a Base Rate Advance, a Prime Rate Advance, a BA Rate Advance, or a LIBOR Rate Advance. 

“Voting Stock” means capital stock issued by a corporation, or equivalent interests in any other Person,
the holders of which are ordinarily, in the absence of contingencies, entitled to vote for the election of directors (or persons performing similar functions) of such Person, even if the right so to vote has been suspended by the happening of such a
contingency. 
 “WFCFC” has the meaning provided in the Preamble and its successors.

 SECTION 1.02. Computation of Time Periods. 
 In this Agreement, unless otherwise specified, (a) in the computation of periods of time from a specified date to a later specified date, the word “from” means “from and
including” and the words “to” and “until” each mean “to but excluding” (b) “including” means “including without limitation”; and (c) any
reference to a time of day means Eastern time. 
 SECTION 1.03. Accounting Terms. 

All accounting terms not specifically defined herein or in the other Loan Documents shall be construed in accordance with generally
accepted accounting principles in Canada (“GAAP”) which for purposes of Section 6.03 shall be consistently applied. If the migration of the Borrower to IFRS or at any time any change in Canadian generally accepted accounting
principles (including the adoption of IFRS as Canadian generally accepted accounting principles) would affect the computation of any financial ratio or requirement set forth herein, and either the Borrower or the Required Lenders shall so request,
the Agent, the Lenders and the Borrower shall negotiate in good faith to amend such ratio or requirement to preserve the original intent thereof in light of such change in GAAP or such migration to IFRS (subject to the approval of the Required
Lenders which shall not be unreasonably withheld), provided that, until so amended, (i) such ratio or requirement shall continue to be computed in accordance with GAAP prior to such change in principles or such migration to IFRS and
(ii) the Borrower shall provide to the Agent and the Lenders financial statements and other documents required under this Agreement or as reasonably requested hereunder setting forth a reconciliation between calculations of such ratio or
requirement made before and after giving effect to such change in GAAP or such migration to IFRS. For the avoidance of doubt, no retroactive change in GAAP shall apply to the construction of accounting terms under this Agreement in the absence of an
amendment hereto in accordance with the terms of this Section 1.03. 
 SECTION 1.04. Other Interpretive Provisions.

 With reference to this Agreement and each other Loan Document, unless otherwise specified herein or in such other Loan
Document, the definitions of terms herein shall apply equally to the singular and plural forms of the terms defined. Unless the context requires otherwise, (i) any definition of or reference to any agreement, instrument or other document shall
be construed as referring to such agreement, instrument or other document as from time to time amended, supplemented or otherwise modified (subject to any restrictions on such amendments, supplements or modifications set forth herein or in any other
Loan Document), (ii) any reference herein to any Person shall be construed to include such Person’s successors and assigns, (iii) the words “herein,” “hereof” and “hereunder,” and
words of similar import when used in any Loan Document, shall be construed to refer to such Loan Document in its entirety and not to any particular provision thereof, (iv) all references in a Loan Document to Articles, Sections, Exhibits and
Schedules shall be construed to refer to Articles and Sections of, and Exhibits and Schedules to, the Loan Document in which such references appear, (v) any reference to any law shall include all statutory and regulatory provisions
consolidating, amending replacing or interpreting such law and any reference to any law or regulation shall, unless otherwise specified, refer to such law or regulation as amended, modified or supplemented from time to time, (vi) the words
“asset” and “property” shall be construed to have the same meaning and effect and to refer to any and all tangible and intangible assets and properties, including cash,

  
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securities, accounts and contract rights, and (vii) any reference to “province” or “provincial” shall be deemed to include “territory” or
“territorial”. For all purposes pursuant to which the interpretation or construction of this Agreement and the other Loan Documents may be subject to the laws of the Province of Quebec or a court or tribunal exercising jurisdiction in the
Province of Quebec, (1) “personal property” shall include “movable property”, (2) “real property” shall include “immovable property”, (3) “tangible property” shall include
“corporeal property”, (4) “intangible property” shall include “incorporeal property”, (5) “security Interest”, “mortgage” and “lien” shall include a “hypothec”,
“prior claim” and a “resolutory clause”, (6) all references to filing, registering or recording under the PPSA shall include publication under the Civil Code of Quebec, (7) all references to “perfection” or
“perfected” liens or security interests shall include a reference to an “opposable” or “set up” lien or security interest as against third parties, (8) any “right of offset”, “right of setoff”
or similar expression shall include a “right of compensation”, (9) “goods” shall include “corporeal moveable property”, other than chattel paper, documents of title, instruments, money and securities, (10) an
“agent” shall include a “mandatary”, (11) “construction liens” shall include “legal hypothecs”, (12) “joint and several” shall include “solidary”, (13) “gross negligence
or willful misconduct” shall be deemed to be “intentional or gross fault”, (14) “beneficial ownership” shall include “ownership on behalf of another as mandatary”, (15) “easement” shall include
“servitude”, (16) “priority” shall include “prior claim”, (17) “survey” shall include “certificate of location and plan”, and (18) “fee simple title” shall include
“absolute ownership.” 
 ARTICLE II 
 AMOUNTS AND TERMS OF THE ADVANCES 
 SECTION 2.01. The Revolving Advances.

 Each Lender severally agrees, on the terms and conditions hereinafter set forth, to make revolving advances (the
“Revolving Advances”) to the Borrower from time to time on any Business Day during the period from the Commitment Effective Date until the Termination Date, in an aggregate amount at any one time outstanding which, when added to
such Lender’s Commitment Percentage of the sum of (i) the aggregate principal amount of the Swingline Advances then outstanding and (ii) the L/C Obligations then outstanding, equals the amount of such Lender’s Commitment;
provided, that the aggregate principal amount of any Borrowing made at any time, when aggregated with all other then outstanding Extensions of Credit, shall not exceed the Line Cap at such time. Each Borrowing under this Section 2.01
shall be in an aggregate amount of CAN$1,000,000 (or $1,000,000, as applicable) or an integral multiple of CAN$1,000,000 (or $1,000,000, as applicable) in excess thereof (provided, that the Swingline Lender may request, on behalf of the Borrower,
Borrowings that are Base Rate Advances or Prime Rate Advances in other amounts pursuant to Section 2.04(b)) and shall consist of Revolving Advances of the same Type made on the same day by the Lenders ratably according to their respective
Commitments. Within the limits set forth in this Section 2.01, the Borrower may borrow under this Section 2.01, prepay pursuant to Section 2.11 and reborrow under this Section 2.01. 

SECTION 2.02. Making the Revolving Advances. 
 (a) Each Borrowing under Section 2.01 shall be made on notice, given not later than (x) 12:00 noon on the third Business Day prior to the date of the proposed Borrowing in the case of a
Borrowing consisting of BA Rate Advances or LIBOR Rate Advances or (y) 11:00 a.m. on the date of the proposed Borrowing in the case of a Borrowing consisting of Base Rate Advances or Prime Rate Advances, by the Borrower to the Agent, which
shall give to each Lender prompt notice thereof by telecopier. Each such notice of a Borrowing (a “Notice of Borrowing”) shall be by telephone, confirmed immediately in writing, by email attachment or by telecopier, in substantially
the form of Exhibit A hereto, specifying therein the requested (i) date of such Borrowing, (ii) Type of Revolving Advances comprising such Borrowing, (iii) aggregate amount of such Borrowing, (iv) the currency of such
Borrowing, which shall be Dollars or Canadian Dollars, and (v) in the case of a Borrowing consisting of BA Rate Advances or LIBOR Rate Advances, initial Interest Period for each such Revolving Advance. Each Lender shall, before 2:00 P.M.
on the date of such Borrowing make available for the account of its Applicable Lending Office to the Agent at the Agent’s Account, in same day funds and in the currency in which such Advance is requested, such Lender’s ratable (in
accordance with its Commitment Percentage) portion of such Borrowing. After the Agent’s receipt of such funds and upon fulfillment of the applicable conditions set forth in Article IV, the Agent will make such funds available to the
Borrower at the Agent’s address referred to in Section 9.02. 

  
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 (b) Anything in subsection (a) above to the contrary notwithstanding, (i) the
Borrower may not select BA Rate Advances or LIBOR Rate Advances for any Borrowing if the aggregate amount of such Borrowing is less than CAN$1,000,000 (or $1,000,000, as applicable) or if the obligation of the Lenders to make BA Rate Advances or
LIBOR Rate Advances shall then be suspended pursuant to Section 2.09 or 2.13 and (ii) the BA Rate Advances and LIBOR Rate Advances may not be outstanding as part of more than ten separate Borrowings in the aggregate. 

(c) Each Notice of Borrowing shall be irrevocable and binding on the Borrower. In the case of any Borrowing that the related Notice of
Borrowing specifies is to be comprised of BA Rate Advances or LIBOR Rate Advances, the Borrower shall indemnify each Lender against any loss, cost or expense incurred by such Lender as a result of any failure to fulfill on or before the date
specified in such Notice of Borrowing for such Borrowing the applicable conditions set forth in Article IV, including any loss (including loss of anticipated profits), cost or expense incurred by reason of the liquidation or reemployment of
deposits or other funds acquired by such Lender to fund the Revolving Advance to be made by such Lender as part of such Borrowing when such Revolving Advance, as a result of such failure, is not made on such date. 

(d) Unless the Agent shall have received notice from a Lender prior to the time of any Borrowing that such Lender will not make available
to the Agent such Lender’s ratable portion of such Borrowing, the Agent may assume that such Lender has made such portion available to the Agent on the date of such Borrowing in accordance with subsection (a) of this Section 2.02 and
the Agent may, in reliance upon such assumption, make available to the Borrower on such date a corresponding amount. If and to the extent that such Lender shall not have so made such ratable portion available to the Agent, such Lender and the
Borrower severally agree to repay to the Agent forthwith on demand such corresponding amount together with interest thereon, for each day from the date such amount is made available to the Borrower until the date such amount is repaid to the Agent,
at (i) in the case of the Borrower, the interest rate applicable at the time to Revolving Advances comprising such Borrowing and (ii) in the case of such Lender, the Federal Funds Rate or the BA Rate for an Interest Period of 30 days, as
applicable. If such Lender shall repay to the Agent such corresponding amount, such amount so repaid shall be made available to the Borrower and shall constitute such Lender’s Revolving Advance as part of such Borrowing for purposes of this
Agreement. 
 (e) The failure of any Lender to make the Revolving Advance to be made by it as part of any Borrowing shall not
relieve any other Lender of its obligation, if any, hereunder to make its Revolving Advance on the date of such Borrowing, but no Lender shall be responsible for the failure of any other Lender to make the Revolving Advance to be made by such other
Lender on the date of any Borrowing. 
 SECTION 2.03. The Swingline Advances. 

(a) . (a) Subject to the terms and conditions hereof, the Swingline Lender agrees to make a portion of the credit otherwise
available to the Borrower under the Commitments from time to time during the period from the Commitment Effective Date until the Termination Date by making swing line advances (“Swingline Advances”) to the Borrower; provided
that (i) the aggregate principal amount of Swingline Advances outstanding at any time shall not exceed the Swingline Commitment then in effect (notwithstanding that the Swingline Advances outstanding at any time, when aggregated with the
Swingline Lender’s other outstanding Revolving Advances, may exceed the Swingline Commitment then in effect) and (ii) the amount of any Swingline Advance made at any time, when aggregated with all other then outstanding Extensions of
Credit, shall not exceed the Line Cap at such time; provided that the Swingline Lender shall not be obligated to make any Swingline Loan at any time when any Lender is at such time a Defaulting Lender or Deteriorating Lender hereunder, unless
the Swingline Lender has entered into satisfactory arrangements with the Borrower or such Lender to eliminate the Swingline Lender’s risk with respect to such Lender. During the period from the Commitment Effective Date until the Termination
Date, the Borrower may use the Swingline Commitment by borrowing, repaying and reborrowing, all in accordance with the terms and conditions hereof. Swingline Advances shall only be available as Base Rate Advances or Prime Rate Advances. 

  
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 (b) The Borrower shall repay to the Swingline Lender the then unpaid principal amount of
each Swingline Advance made on the earlier of (i) the Termination Date, and (ii) the first date after such Swingline Advance is made that is the 15th or last day of a calendar month and is at least two Business Days after such Swingline
Advance is made; provided that on each date that a Revolving Advance is borrowed, the Borrower shall repay all Swingline Advances then outstanding, if any, and may use all or a portion of such Revolving Advance to fund such repayment.

 SECTION 2.04. Making the Swingline Advances. 
 (a) Each Borrowing under Section 2.03 shall be made on notice, given not later than 1:00 p.m. on the date of the proposed Borrowing, by the Borrower to the Agent and Swingline Lender. Each such
Notice of a Borrowing shall be by telephone, confirmed immediately in writing, by email attachment or by telecopier, in substantially the form of Exhibit A hereto, specifying therein the requested (i) date of such Borrowing,
(ii) aggregate amount of such Borrowing, and (iii) the currency of such Borrowing, which shall be Dollars or Canadian Dollars. Each Borrowing under the Swingline Commitment shall be in an amount equal to CAN$100,000 (or $100,000, as
applicable) or a whole multiple of CAN$100,000 (or $100,000, as applicable) in excess thereof. Not later than 3:00 P.M. on the date of the proposed Borrowing, the Swingline Lender shall make available to the Agent at the Agent’s Account an
amount in immediately available funds equal to the amount of the Swingline Advance to be made by the Swingline Lender. Upon fulfillment of the applicable conditions set forth in Article IV, the Agent shall make the proceeds of such Swingline Advance
available to the Borrower at the Agent’s address referred to in Section 9.02. 
 (b) The Swingline Lender, at any time
and from time to time in its sole and absolute discretion may, on behalf of the Borrower (which hereby irrevocably directs the Swingline Lender to act on its behalf), by notice given by the Swingline Lender no later than 1:00 p.m., request each
Lender to make, and each Lender hereby agrees to make, a Revolving Advance, in an amount equal to such Lender’s Commitment Percentage of the aggregate amount of the Swingline Advances and in the same currency as the applicable Swingline
Advances being refunded (the “Refunded Swingline Advances”) outstanding on the date of such notice, to repay the Swingline Lender. Each Lender shall make the amount of such Revolving Advance available to the Agent at the
Agent’s Account in same day funds, not later than 2:00 P.M. on the date of such notice. The proceeds of such Revolving Advances shall be immediately made available by the Agent to the Swingline Lender for application by the Swingline Lender to
the repayment of the Refunded Swingline Advances. The Borrower irrevocably authorizes the Swingline Lender to charge the Borrower’s accounts with the Agent or any of the Agent’s Affiliates (up to the amount available in each such account)
in order to immediately pay the amount of such Refunded Swingline Advances to the extent amounts received from the Lenders are not sufficient to repay in full such Refunded Swingline Advances. 

(c) If prior to the time a Revolving Advance would have otherwise been made pursuant to Section 2.04(b), one of the events described
in Section 7.01 shall have occurred and be continuing or if for any other reason, as determined by the Swingline Lender in its sole discretion, Revolving Advances may not be made as contemplated by Section 2.04(b), each Lender shall, on
the date such Revolving Advance was to have been made pursuant to the notice referred to in Section 2.04(b), purchase for cash an undivided participating interest in the then outstanding Swingline Advances by paying to the Swingline Lender an
amount (the “Swingline Participation Amount”) equal to (i) such Lender’s Commitment Percentage multiplied by (ii) the sum of the aggregate principal amount of Swingline Advances then outstanding that
were to have been repaid with such Revolving Advances. 
 (d) Whenever, at any time after the Swingline Lender has received from
any Lender such Lender’s Swingline Participation Amount, the Swingline Lender receives any payment on account of the Swingline Advances, the Swingline Lender will distribute to such Lender its Swingline Participation Amount (appropriately
adjusted, in the case of interest payments, to reflect the period of time during which such Lender’s participating interest was outstanding and funded and, in the case of principal and interest payments, and to reflect such Lender’s
pro rata portion of such payment if such payment is not sufficient to pay the principal of and interest on all Swingline Advances then due); provided, however, that in the event that such payment received by the Swingline
Lender is required to be returned, such Lender will return to the Swingline Lender any portion thereof previously distributed to it by the Swingline Lender. 

  
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 (e) Each Lender’s obligation to make the Advances referred to in Section 2.04(b)
and to purchase participating interests pursuant to Section 2.04(c) shall be absolute and unconditional and shall not be affected by any circumstance, including (i) any set-off, counterclaim, recoupment, defense or other right that such
Lender or the Borrower may have against the Swingline Lender, the Borrower or any other Person for any reason whatsoever, (ii) the occurrence or continuance of a Default or an Event of Default or the failure to satisfy any of the other
conditions specified in Article IV, (iii) any adverse change in the condition (financial or otherwise) of the Borrower or any other Loan Party, (iv) any breach of this Agreement or any other Loan Document by the Borrower, any other Loan
Party or any other Lender or (v) any other circumstance, happening or event whatsoever, whether or not similar to any of the foregoing. 
 SECTION 2.05. Fees. 
 (a) Commitment Fee. The Borrower agrees to pay
to the Agent, for the account of each Lender, a commitment fee, commencing on the Effective Date, on the average daily amount of the Available Commitment of such Lender during the period for which payment is made at a rate per annum equal to the
Commitment Fee Rate, payable in arrears monthly on the 1st calendar day subsequent to the last day of each month, and on the Termination Date. 
 (b) Other Fees. The Borrower shall pay to the Agent, the Co-Collateral Agents and the Arrangers the fees set forth in the Fee Letter and the GE Fee Letter in the amounts and at the times specified
therein. 
 SECTION 2.06. Optional Termination or Reduction of the Commitments. 

The Borrower shall have the right, without penalty or premium and upon at least three Business Days’ notice to the Agent, to
permanently terminate in whole or permanently reduce in part the unused portions of the respective Commitments of the Lenders, provided that no such termination or reduction of the Commitments shall be permitted if, after giving effect
thereto and to any prepayments of the Advances made on the effective date thereof, the Total Extensions of Credit would exceed the aggregate amount of the Commitments as so reduced. Any partial reduction of the Commitments shall be in the aggregate
amount of CAN$5,000,000 or an integral multiple of CAN$1,000,000 in excess thereof; provided further that, except for any reduction pursuant to Section 8.12, any such reduction shall be applied ratably to the Commitments of the Lenders.

 SECTION 2.07. Repayment of Advances. 
 The Borrower shall repay to the Agent, for the ratable account of the Lenders on the Termination Date, the aggregate principal amount of the Advances made by the Lenders then outstanding, in each case in
the same currency in which such Advances were made. 
 SECTION 2.08. Interest on Advances. 

(a) Scheduled Interest Owed to Lenders. The Borrower shall pay interest on the unpaid principal amount of each Advance made and
owing to each Lender from the date of such Advance until such principal amount shall be paid in full, at the following rates per annum: 
 (i) Base Rate Advances. During such periods as such Advance is made in Canadian Dollars and is a Base Rate Advance, a rate per annum equal at all times to the sum of (x) the Base Rate in
effect from time to time plus (y) the Applicable Margin for Base Rate Advances in effect from time to time, payable in the case of any Base Rate Advance (other than a Swingline Advance), in arrears monthly on the 1st calendar day
subsequent to the last day of each month during such periods and on the date such Base Rate Advance shall be Converted or paid in full. 

  
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 (ii) BA Rate Advances. During such periods as such Advance is made in
Canadian Dollars and is a BA Rate Advance, a rate per annum equal at all times during each Interest Period for such Advance to the sum of (x) the BA Rate for such Interest Period for such Advance plus (y) the Applicable Margin for
BA Rate Advances in effect from time to time, payable in arrears on the last day of such Interest Period and on the date such BA Rate Advance shall be Converted or paid in full. 

(iii) Prime Rate Advances. During such periods as such Advance is made in Dollars and is a Prime Rate Advance, a
rate per annum equal at all times to the sum of (x) the Prime Rate in effect from time to time plus (y) the Applicable Margin for Prime Rate Advances in effect from time to time, payable in the case of any Prime Rate Advance (other
than a Swingline Advance), in arrears monthly on the 1st calendar day subsequent to the last day of each month during such periods and on the date such Prime Rate Advance shall be Converted or paid in full. 

(iv) LIBOR Rate Advances. During such periods as such Advance is made in Dollars and is a LIBOR Rate Advance, a
rate per annum equal at all times during each Interest Period for such Advance to the sum of (x) the Adjusted LIBOR Rate for such Interest Period for such Advance plus (y) the Applicable Margin for LIBOR Rate Advances in effect from
time to time, payable in arrears on the last day of such Interest Period and on the date such LIBOR Rate Advance shall be Converted or paid in full. 
 (b) Default Interest. Upon the occurrence and during the continuance of an Event of Default, at the option of the Agent or on the request of the Required Lenders, the Borrower shall pay interest on
the unpaid principal amount of each Advance and Reimbursement Obligation owing to each Lender, payable in arrears on the dates referred to in Section 2.08(a) above, at a rate per annum equal to 2% per annum above the rate per annum
required to be paid on such Advance or Reimbursement Obligation pursuant to Section 2.08(a) above. Further, the Borrower shall pay interest, to the fullest extent permitted by law, on the amount of any interest, fee or other amount (other than
principal) payable hereunder that is not paid when due, from the date such amount shall be due until such amount shall be paid in full, payable in arrears on the date such amount shall be paid in full and on demand, at a rate per annum equal to
(i) with respect to amounts payable in Canadian Dollars, 2% per annum above the rate per annum required to be paid on Base Rate Advances pursuant to Section 2.08(a)(i), and (ii) with respect to amounts payable in Dollars,
2% per annum above the rate per annum required to be paid on Prime Rate Advances pursuant to Section 2.08(a)(iii). 

(c) If any provision of this Agreement or any of the other Loan Documents would obligate the Borrower or any other Person to make any
payment of interest or other amount payable to the Agent, any Co-Collateral Agent or any Lender in an amount or calculated at a rate which would be prohibited by law or would result in a receipt by the Agent, such Co-Collateral Agent or such Lender
of interest at a criminal rate (as construed under the Criminal Code (Canada)), if applicable thereto, then notwithstanding that provision, that amount or rate shall be deemed to have been adjusted with retroactive effect to the maximum amount or
rate of interest, as the case may be, as would not be so prohibited by law or result in a receipt by the Agent, such Co-Collateral Agent or such Lender of interest at a criminal rate, the adjustment to be effected, to the extent necessary, as
follows: 
 (i) first, by reducing the amount or rate of interest required to be paid to the Agent, the
applicable Co-Collateral Agent or applicable Lender under this Section 2.08(c); and 
 (ii) thereafter, by
reducing any fees, commissions, premiums and other amounts required to be paid to the Agent, the applicable Co-Collateral Agent or applicable Lender which would constitute interest for purposes of the Criminal Code (Canada). 

Notwithstanding the provisions of this Section 2.08(c), and after giving effect to all adjustments contemplated hereby, if the
Agent, any Co-Collateral Agent or any Lender shall have received an amount in excess of the maximum permitted by the Criminal Code (Canada) or other legal prohibition, then the Borrower shall be entitled, by notice in writing to the Agent, the
applicable Co-Collateral Agent or applicable Lender, as the case may be, to obtain reimbursement from the Agent, the applicable Co-Collateral Agent or applicable Lender, as the case may be, in an amount equal to the excess, and pending
reimbursement, the amount of the excess shall be deemed to 

  
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be an amount payable by the Agent, the applicable Co-Collateral Agent or applicable Lender, as the case may be, to the Borrower. Any amount or rate of interest referred to in this
Section 2.08(c) shall be determined in accordance with generally accepted actuarial practices and principles as an effective annual rate of interest over the term that any Obligation remains outstanding on the assumption that any charges, fees
or expenses that fall within the meaning of “interest” (as defined in the Criminal Code (Canada)) shall, if they relate to a specific period of time, be pro-rated over that period of time and otherwise be pro-rated over the period from the
date of the incurrence of the Obligation to its relevant maturity date and, in the event of a dispute, a certificate of a Fellow of the Canadian Institute of Actuaries appointed by the Agent shall be conclusive for the purposes of that
determination. 
 SECTION 2.09. Interest Rate Determination. 

(a) The Agent shall give prompt notice to the Borrower and the Lenders of the applicable interest rate determined by the Agent for
purposes of Section 2.08(a). 
 (b) If, with respect to any BA Rate Advances or LIBOR Rate Advances, the Required Lenders
notify the Agent at least one Business Day before the date of any proposed BA Rate Advance or LIBOR Rate Advance, as applicable, that the BA Rate or LIBOR Rate for any Interest Period for such Advances will not adequately reflect the cost to such
Required Lenders of making, funding or maintaining their respective BA Rate Advances or LIBOR Rate Advances for such Interest Period, the Agent shall forthwith so notify the Borrower and the Lenders, whereupon (i) each BA Rate Advance and LIBOR
Rate Advance, as applicable, will automatically, on the last day of the then existing Interest Period therefor, Convert into a Base Rate Advance or Prime Rate Advance, as applicable, and (ii) the obligation of the Lenders to make, or to Convert
Advances into, BA Rate Advances or LIBOR Rate Advances, as applicable, shall be suspended until the Agent shall notify the Borrower and the Lenders that the circumstances causing such suspension no longer exist. 

(c) If the Borrower shall fail to select the duration of any Interest Period for any BA Rate Advances or LIBOR Rate Advances in
accordance with the provisions contained in the definition of “Interest Period” in Section 1.01, the Agent will forthwith so notify the Borrower and the Lenders and such Advances will automatically, on the last day of the then
existing Interest Period therefor, Convert into Base Rate Advances or Prime Rate Advances, as applicable. 
 (d) On the date on
which the aggregate unpaid principal amount of BA Rate Advances or LIBOR Rate Advances, as applicable, comprising any Borrowing shall be reduced, by payment or prepayment or otherwise, to less than CAN$1,000,000 (or $1,000,000, as applicable), such
Advances shall on the last day of the applicable Interest Period automatically Convert into Base Rate Advances or Prime Rate Advances, as applicable. 
 (e) Upon the occurrence and during the continuance of any Event of Default, at the option of the Agent or on the request of the Required Lenders (i) each BA Rate Advance and LIBOR Rate Advance will
automatically, on the last day of the then existing Interest Period therefor, Convert into a Base Rate Advance or Prime Rate Advance, as applicable, and (ii) the obligation of the Lenders to make, or to Convert Revolving Advances into, BA Rate
Advances or LIBOR Rate Advances shall be suspended. 
 SECTION 2.10. Optional Conversion of Revolving Advances.

 The Borrower may on any Business Day, upon notice given to the Agent not later than 12:00 noon on the third Business Day
prior to the date of the proposed Conversion and subject to the provisions of Sections 2.09 and 2.13, Convert part or all Revolving Advances of one Type comprising the same Borrowing into Revolving Advances of the other Type; provided,
however, that any Conversion of BA Rate Advances into Base Rate Advances or of LIBOR Rate Advances into Prime Rate Advances shall be made only on the last day of an Interest Period for such BA Rate Advances or LIBOR Rate Advances, any
Conversion of Base Rate Advances into BA Rate Advances or of Prime Rate Advances into LIBOR Rate Advances shall be in an amount not less than the minimum amount specified in Section 2.02(b) and no Conversion of any Revolving Advances shall
result in more separate Borrowings than permitted under Section 2.02(b). Each such notice of a Conversion shall, within the 

  
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restrictions specified above, specify (i) the date of such Conversion, (ii) the Revolving Advances to be Converted, and (iii) if such Conversion is into BA Rate Advances or LIBOR
Rate Advances, the duration of the initial Interest Period for each such Revolving Advance. Each notice of Conversion shall be irrevocable and binding on the Borrower. 
 SECTION 2.11. Optional and Mandatory Prepayments of Advances. 
 (a) The
Borrower may, without penalty or premium and upon notice given not later than 12:00 noon on the date of such prepayment to the Agent stating the proposed date and aggregate principal amount of the prepayment, and if such notice is given the Borrower
shall, prepay the outstanding principal amount of the Advances comprising part of the same Borrowing in whole or ratably in part, together with accrued interest to the date of such prepayment on the principal amount prepaid, in each case in such
currency as the applicable Borrowing was made; provided, however, that (x) each partial prepayment shall be in an aggregate principal amount of CAN$5,000,000 (or $5,000,000, as applicable) or an integral multiple of CAN$1,000,000
(or $1,000,000, as applicable) in excess thereof (or, in the case of partial prepayments of Swingline Advances, CAN$100,000 (or $100,000, as applicable) or a whole multiple thereof) and (y) in the event of any such prepayment of a BA Rate
Advance or LIBOR Rate Advance, the Borrower shall be obligated to reimburse the Lenders in respect thereof pursuant to Section 9.04(c). 
 (b) On the date of delivery of any Borrowing Base Certificate, if the Total Extensions of Credit exceed the Line Cap, the Borrower shall prepay Advances in an amount equal to such excess in the same
currency in which such Advances were made, provided that if the aggregate principal amount of Advances then outstanding is less than the amount of such excess (because L/C Obligations constitute a portion thereof), the Borrower shall, to the
extent of the balance of such excess, replace outstanding Letters of Credit and/or deposit an amount in cash in a cash collateral account established with the Agent for the benefit of the Lenders on terms and conditions satisfactory to the Agent.
Any prepayment of Loans pursuant to this Section 2.11(b) or Section 2.11(c) shall be applied, first, to any Base Rate Advances or Prime Rate Advances then outstanding and the balance of such prepayment, if any, to the BA Rate Advances or
LIBOR Rate Advances then outstanding. In connection with the foregoing, the Agent may monthly (or more frequently in the Agent’s Permitted Discretion) make the necessary exchange rate calculations in accordance with Section 3.10 to
determine whether any such excess described in this Section exists on such date. Prepayments made pursuant to this Section 2.11(b) shall not reduce the Aggregate Commitments hereunder. 

(c) Upon the occurrence and during the continuance of a Cash Dominion Event, the Borrower shall prepay the Advances in the same currency
in which such Advances were made, and upon the occurrence and during the continuance of an Event of Default, the Borrower shall cash collateralize the L/C Obligations, in each case, in accordance with the provisions of Section 6.01(m) hereof.
Prepayments made pursuant to this Section 2.11(c) shall not reduce the Aggregate Commitments hereunder. 
 SECTION 2.12.
Increased Costs. 
 (a) If, due to either (i) the introduction of or any change in or in the interpretation of any
law or regulation or (ii) the compliance with any guideline or request from any central bank or other governmental authority (whether or not having the force of law) made or issued after the Effective Date, there shall be any increase in the
cost to any Lender of agreeing to make or making, funding or maintaining BA Rate Advances or LIBOR Rate Advances or issuing or participating in Letters of Credit (excluding for purposes of this Section 2.12 any such increased costs resulting
from (i) Taxes or Other Taxes (as to which Section 2.15 shall govern) and (ii) changes in the basis of taxation of overall net income, overall gross income or capital by Canada or by the foreign jurisdiction or state or province under
the laws of which such Lender is organized or has its Applicable Lending Office or any political subdivision thereof), then the Borrower shall from time to time, upon demand by such Lender (with a copy of such demand to the Agent), pay to the Agent
for the account of such Lender additional amounts sufficient to compensate such Lender for such increased cost; provided that a Lender claiming additional amounts under this Section 2.12(a) agrees to use reasonable efforts (consistent with its
internal policy and legal and regulatory restrictions) to designate a different Applicable Lending Office and/or take other commercially reasonable action if 

  
 37 

 
the making of such a designation or the taking of such actions would avoid the need for, or reduce the amount of, such increased cost that may thereafter accrue and would not, in the reasonable
judgment of such Lender, be otherwise disadvantageous to such Lender. A certificate as to the amount of such increased cost, submitted to the Borrower and the Agent by such Lender, shall be entitled to a presumption of correctness. If the Borrower
so notifies the Agent after any Lender notifies the Borrower of any increased cost pursuant to the foregoing provisions of this Section 2.12(a), the Borrower may, upon payment of such increased cost to such Lender, replace such Lender with a
Person that is an Eligible Assignee in accordance with the terms of Section 9.07 (and the Lender being so replaced shall take all action as may be necessary to assign its rights and obligations under this Agreement to such Eligible Assignee).

 (b) If any Lender determines that compliance with any change after the Effective Date in law or regulation or any guideline
or request after the Effective Date from any central bank or other governmental authority (whether or not having the force of law) affects or would affect the amount of capital required or expected to be maintained by such Lender or any entity
controlling such Lender and that the amount of such capital is increased by or based upon the existence of such Lender’s commitment to lend hereunder and other commitments of this type, then, upon demand by such Lender (with a copy of such
demand to the Agent), the Borrower shall pay to the Agent for the account of such Lender, from time to time as specified by such Lender, additional amounts sufficient to compensate such Lender or such entity in the light of such circumstances, to
the extent that such Lender reasonably determines such increase in capital to be allocable to the existence of such Lender’s commitment to lend hereunder. A certificate as to such amounts submitted to the Borrower and the Agent by such Lender
shall be entitled to a presumption of correctness. 
 (c) The Borrower shall not be required to compensate a Lender pursuant to
this Section for any increased costs or capital or reserve requirement or pursuant to Section 2.15 for any taxes incurred more than six months prior to the date that such Lender notifies the Borrower of the change or issuance giving rise to
such increased costs or capital or reserve requirement or tax and of such Lender’s intention to claim compensation therefor; provided that if the change or issuance giving rise to such increased costs or capital or reserve requirement or
tax is retroactive, then the six-month period referred to above shall be extended to include the period of retroactive effect thereof. 
 SECTION 2.13. Illegality. 
 Notwithstanding any other provision of this
Agreement, if any Lender shall notify the Agent that the introduction of or any change in or in the interpretation of any law or regulation makes it unlawful, or any central bank or other governmental authority asserts that it is unlawful, for any
Lender or its Applicable Lending Office to perform its obligations hereunder to make BA Rate Advances or LIBOR Rate Advances or to fund or maintain BA Rate Advances or LIBOR Rate Advances hereunder, (a) each BA Rate Advance or LIBOR Rate
Advance, as applicable, will automatically, upon such demand, to the extent required by applicable law, Convert into a Base Rate Advance or a Prime Rate Advance, and (b) the obligation of the Lenders to make BA Rate Advances or LIBOR Rate
Advances, as applicable, or to Convert Advances into BA Rate Advances or LIBOR Rate Advances, as applicable, shall be suspended until the Agent shall notify the Borrower and the Lenders that the circumstances causing such suspension no longer exist.

 SECTION 2.14. Payments and Computations. 
 (a) The Borrower shall make each payment hereunder and under the other Loan Documents, without any right of counterclaim or set-off, not later than 1:00 P.M. on the day when due in the same currency in
which the Advance was initially made or the Letter of Credit issued to the Agent at the Agent’s Account in same day funds. The Agent will promptly thereafter cause to be distributed like funds relating to the payment of principal or interest or
commitment fees ratably (other than amounts payable pursuant to Section 2.12, 2.15 or 9.04(c)) to the Lenders for the account of their respective Applicable Lending Offices, and like funds relating to the payment of any other amount payable to
any Lender to such Lender for the account of its Applicable Lending Office, in each case to be applied in accordance with the terms of this Agreement. Upon its acceptance of an Assignment and Acceptance and recording of the information contained
therein in the Register pursuant to Section 9.07(c), from and after the 

  
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effective date specified in such Assignment and Acceptance, the Agent shall make all payments hereunder and under the other Loan Documents in respect of the interest assigned thereby to the
Lender assignee thereunder, and the parties to such Assignment and Acceptance shall make all appropriate adjustments in such payments for periods prior to such effective date directly between themselves. 

(b) The Borrower hereby authorizes each Lender, if and to the extent payment owed by it to such Lender is not made when due hereunder or
under the other Loan Documents, to charge from time to time against any or all of the Borrower’s accounts with such Lender any amount so due, notwithstanding that an Overadvance may result thereby. Any such Lender so charging such accounts
shall deliver the proceeds therefrom to the Agent for distribution to the Credit Parties in the manner set forth herein and in the other Loan Documents. 
 (c) All computations of interest based on the Base Rate, the Prime Rate or the BA Rate, and of commitment fees shall be made by the Agent on the basis of a year of 365 days, and all computations of
interest based on the Federal Funds Rate or the Adjusted LIBOR Rate shall be made by the Agent on the basis of a year of 360 days, in each case for the actual number of days (including the first day but excluding the last day) occurring in the
period for which such interest or commitment fees are payable. Each determination by the Agent of an interest rate hereunder shall be conclusive and binding for all purposes, absent manifest error. For purposes of disclosure under the Interest
Act (Canada), where interest is calculated pursuant hereto at a rate based upon a three hundred sixty-five (365) or three hundred sixty (360) day year (the “First Rate”), it is hereby agreed that the rate or percentage
of interest on a yearly basis is equivalent to such First Rate multiplied by the actual number of days in the year divided by three hundred sixty-five (365) or three hundred sixty (360), as applicable. 

(d) Whenever any payment hereunder or under the other Loan Documents shall be stated to be due on a day other than a Business Day, such
payment shall be made on the next succeeding Business Day, and such extension of time shall in such case be included in the computation of payment of interest or commitment fee, as the case may be; provided, however, that, if such
extension would cause payment of interest on or principal of BA Rate Advances or LIBOR Rate Advances to be made in the next following calendar month, such payment shall be made on the next preceding Business Day. 

(e) Unless the Agent shall have received notice from the Borrower prior to the date on which any payment is due by it to the Lenders
hereunder that the Borrower will not make such payment in full, the Agent may assume that the Borrower has made such payment in full to the Agent on such date and the Agent may, in reliance upon such assumption, cause to be distributed to each
Lender on such due date an amount equal to the amount then due such Lender. If and to the extent the Borrower shall not have so made such payment in full to the Agent, each Lender shall repay to the Agent forthwith on demand such amount distributed
to such Lender together with interest thereon, for each day from the date such amount is distributed to such Lender until the date such Lender repays such amount to the Agent, at the BA Rate for a 30-day Interest Period (with respect to amounts
payable in Canadian Dollars) or the Federal Funds Rate (with respect to amounts payable in Dollars), as applicable. 
 SECTION
2.15. Taxes. 
 (a) Any and all payments by the Borrower to or for the account of any Lender, the Agent or any
Co-Collateral Agent hereunder or under the other Loan Documents or any other documents to be delivered hereunder shall be made, in accordance with Section 2.14 or the applicable provisions of such other documents, free and clear of and without
deduction for any and all present or future withholding taxes, including levies, imposts, deductions, charges or withholdings, and all liabilities with respect thereto, excluding, in the case of each Lender, the Agent and each Co-Collateral Agent,
taxes imposed on its overall net income, and franchise taxes imposed on it in lieu of net income taxes, and branch profits taxes, by the jurisdiction under the laws of which such Lender, the Agent or such Co-Collateral Agent (as the case may be) is
organized or any political subdivision thereof and, in the case of each Lender, taxes imposed on its overall net income, and franchise taxes imposed on it in lieu of net income taxes, and branch profits taxes, by the jurisdiction of such
Lender’s Applicable Lending Office or any political subdivision thereof (all such non-excluded taxes, levies, imposts, deductions, charges, withholdings and liabilities in respect of payments hereunder or under the other Loan Documents being
hereinafter referred to as “Taxes”). If the Borrower shall be required by law to deduct any Taxes from or in respect of any sum payable hereunder or under 

  
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any other Loan Document or any other documents to be delivered hereunder to any Lender, the Agent or any Co-Collateral Agent, (i) the sum payable shall be increased as may be necessary so
that after making all required deductions (including deductions applicable to additional sums payable under this Section 2.15) such Lender, the Agent or such Co-Collateral Agent (as the case may be) receive an amount equal to the sum each would
have received had no such deductions been made, (ii) the Borrower shall make such deductions and (iii) the Borrower shall pay the full amount deducted to the relevant taxation authority or other authority in accordance with applicable law.

 (b) In addition, the Borrower shall pay any present or future stamp or documentary taxes or any other excise or property
taxes, charges or similar levies that arise from any payment made hereunder or under the other Loan Documents or from the execution, delivery or registration of, performing under, or otherwise with respect to, this Agreement or the other Loan
Documents or any other documents to be delivered hereunder, but excluding all other Canadian and United States federal taxes other than withholding taxes (hereinafter referred to as “Other Taxes”). 

(c) The Borrower shall indemnify each Lender, the Agent and each Co-Collateral Agent for and hold each of them harmless against the full
amount of Taxes or Other Taxes (including taxes of any kind imposed or asserted by any jurisdiction on amounts payable under this Section 2.15) imposed on or paid by such Lender, the Agent or such Co-Collateral Agent (as the case may be) and
any liability (including penalties, interest and expenses) arising therefrom or with respect thereto. This indemnification shall be made within 30 days from the date such Lender, the Agent or such Co-Collateral Agent makes written demand therefor.

 (d) Within 30 days after the date of any payment of Taxes or Other Taxes, the Borrower shall furnish to the Agent, at its
address referred to in Section 9.02, the original or a certified copy of a receipt evidencing such payment to the extent such a receipt is issued therefor, or other written proof of payment thereof that is reasonably satisfactory to the Agent.

 (e) Any Lender claiming any additional amounts payable pursuant to this Section 2.15 agrees to use reasonable efforts
(consistent with its internal policy and legal and regulatory restrictions) to change the jurisdiction of its Applicable Lending Office if the making of such a change would avoid the need for, or reduce the amount of, any such additional amounts
that may thereafter accrue and would not, in the reasonable judgment of such Lender, be otherwise disadvantageous to such Lender. 
 (f) If any Lender determines, in its sole discretion, that it has actually and finally realized, by reason of a refund, deduction or credit of any Taxes paid or reimbursed by the Borrower pursuant to
subsection (a) or (c) above in respect of payments under this Agreement or the other Loan Documents, a current monetary benefit that it would otherwise not have obtained, and that would result in the total payments under this
Section 2.15 exceeding the amount needed to make such Lender whole, such Lender shall pay to the Borrower, with reasonable promptness following the date on which it actually realizes such benefit, an amount equal to the amount of such excess,
net of all out-of-pocket expenses reasonably allocable in securing such refund, deduction or credit, provided that the Borrower, upon the request of such Lender, agrees to repay the amount paid over to the Borrower to such Lender in the event
such Lender is required to repay such refund to such jurisdiction. Nothing in this subsection (f) shall be construed to require any Lender to make available to the Borrower or any other Person its tax returns or any confidential tax
information. 
 (g) If the Agent, any Co-Collateral Agent or any Lender, as the case may be, shall become aware that it is
entitled to claim a refund from a Governmental Authority in respect of Taxes or Other Taxes paid by the Borrower pursuant to this Section 2.15, including Taxes or Other Taxes as to which it has been indemnified by the Borrower, or with respect
to which the Borrower or a Group Member that is a signatory hereto has paid additional amounts pursuant to this Section 2.15, it shall notify the Borrower of the availability of such refund claim and, if the Agent, any Co-Collateral Agent or
any Lender, as the case may be, determines in good faith that making a claim for refund will not have any adverse consequence to its taxes or business operations, it shall, after receipt of a request by the Borrower, make a claim to such
Governmental Authority for such refund at the Borrower’s expense. 

  
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 SECTION 2.16. Sharing of Payments, Etc. 

If any Lender shall obtain any payment from any Group Member (whether voluntary, involuntary, through the exercise of any right of
set-off, or otherwise) on account of the Advances or other amounts owing to it (other than pursuant to Section 2.05(b), 2.06, 2.07, 2.12, 2.15, 2.18 or 9.04(c)) in excess of its ratable share, such Lender shall forthwith purchase from the
other Lenders such participations in the Advances or other amounts owing to them as shall be necessary to cause such purchasing Lender to share the excess payment ratably with each of them; provided, however, that if all or any portion
of such excess payment is thereafter recovered from such purchasing Lender, such purchase from each such other Lender shall be rescinded and such Lender shall repay to the purchasing Lender the purchase price to the extent of such recovery together
with an amount equal to such Lender’s ratable share (according to the proportion of (i) the amount of such Lender’s required repayment to (ii) the total amount so recovered from the purchasing Lender) of any interest or other
amount paid or payable by the purchasing Lender in respect of the total amount so recovered. The Borrower agrees that any Lender so purchasing a participation from another Lender pursuant to this Section 2.16 may, to the fullest extent
permitted by law, exercise all its rights of payment (including the right of set-off) with respect to such participation as fully as if such Lender were the direct creditor of the Borrower in the amount of such participation. 

SECTION 2.17. Use of Proceeds of Advances. 
 The proceeds of the Advances shall be available (and the Borrower agrees that it shall use such proceeds) for general corporate purposes of the Borrower and its Subsidiaries, including, without
limitation, for acquisitions, capital expenditures, cash dividends, and payment of any of the Obligations, all to the extent permitted herein. 
 SECTION 2.18. Increase in Commitments.  
 (a) Request for
Increase. After the Commitment Effective Date, provided no Default or Event of Default then exists or would arise therefrom, upon notice to the Agent (which shall promptly notify the Lenders), the Borrower may request (a “Commitment
Increase Request”) that the Aggregate Commitments be increased (each, a “Commitment Increase”) by an amount not to exceed CAN$200,000,000 in the aggregate; provided, however, that (i) each Commitment
Increase Request shall be in a minimum amount of CAN$25,000,000, and (z) the Borrower may request a maximum of eight Commitment Increases. At the time of sending such notice, the Borrower (in consultation with the Agent) shall specify the time
period within which each Lender is requested to respond (which shall in no event be less than ten Business Days from the date of delivery of such notice to the Lenders). 
 (b) Lender Elections. Each Lender shall notify the Agent within the time period described in Section 2.18(a) whether or not it agrees to increase its Commitment and, if so, whether by an
amount equal to, greater than, or less than its Commitment Percentage of such Commitment Increase Request. Any Lender not responding within such time period shall be deemed to have declined to increase its Commitment. No Lender shall have any
obligation to increase its Commitment. 
 (c) Notification by Agent. The Agent shall notify the Borrower, each Lender and
the Lead Arrangers, of the Lenders’ responses to each request made under Section 2.18(a). To achieve the full amount of any Commitment Increase specified in any Commitment Increase Request, subject to the approval of the Agent (which
approval shall not be unreasonably withheld), to the extent that the existing Lenders decline to increase their Commitments, or decline to increase their Commitments in the full amount requested by the Borrower, other consenting Eligible Assignees
(each an “Additional Commitment Lender”) may become a Lender hereunder and furnish a commitment in the amount requested by the Borrower under Section 2.18(a) and not accepted by the existing Lenders, provided,
however, that without the consent of the Agent, at no time shall the Commitment of any Additional Commitment Lender be less than CAN$10,000,000. At the request of the Borrower, the Arranger, in consultation with the Borrower, may, but shall
not be required, to use its reasonable efforts to arrange for Commitments from Additional Commitment Lenders. 
 (d)
Conditions to Effectiveness of each Commitment Increase. As a condition precedent to each Commitment Increase after the Commitment Effective Date, (i) the Borrower shall deliver to the Agent a certificate of the Borrower dated as of the
Increase Effective Date signed by an Authorized Officer of the Borrower (A) certifying and attaching the resolutions adopted by the board of directors (or other applicable governing body) of the Borrower approving or consenting to such
Commitment Increase, and (B) certifying that, before and after giving 

  
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effect to such Commitment Increase, the representations and warranties contained in Article V hereof and the other Loan Documents are true and correct in all material respects on and as of the
Increase Effective Date, except to the extent (1) such representations or warranties are qualified by a materiality standard, in which case they shall be true and correct in all respects, and (2) such representations or warranties
expressly relate to an earlier date (in which case such representations and warranties shall be true and correct in all material respects as of such earlier date), (ii) the Loan Parties other than the Borrower shall deliver an
“acknowledgment and acceptance” of the Commitment Increase in form reasonably satisfactory to the Agent, (iii) if applicable, the Borrower, the Agent, and any Additional Commitment Lender shall have executed and delivered a joinder to
the Loan Documents in such form as the Agent shall reasonably require; (iv) the Borrower shall have paid such fees to the Arranger (to the extent that the Arranger provides assistance in arranging the Commitment Increases of Additional
Commitment Lenders), the Additional Commitment Lenders and the other Lenders who agree to increase their Commitments, as the Borrower and the Arranger, the Additional Commitment Lenders and the other Lenders, respectively, may agree; (v) the
Borrower shall deliver to the Agent and the Lenders an opinion or opinions, in form and substance reasonably satisfactory to the Agent, from counsel to the Borrower and the other Loan Parties reasonably satisfactory to the Agent and dated such date;
and (vi) no Default or Event of Default shall exist or result from the Commitment Increase. The Borrower shall prepay any Advances outstanding on the Increase Effective Date (and pay any additional amounts required pursuant to
Section 9.04(c)) and may borrow on a non-ratable basis from any Lender or Additional Commitment Lender committed to a portion of the applicable Commitment Increase, in each case to the extent necessary to keep the outstanding Advances
ratable with any revised Commitment Percentage arising from any nonratable increase in the Commitments under this Section. 

Each of the parties hereto hereby agrees that the Agent may take any and all further action as may be reasonably necessary to ensure that
all Advances in respect of Commitment Increases, when originally made, are included in each Borrowing of outstanding Advances on a pro rata basis. The Borrower agrees that Section 9.04(c) shall apply to any conversion of BA Rate Advances to
Base Rate Advances or LIBOR Rate Advances to Prime Rate Advances reasonably required by the Agent to effect the foregoing. 

(e) Increase Effective Date and Allocations. If the Commitments are increased after the Commitment Effective Date in accordance
with this Section, the Agent (in consultation with the Borrower and the Arranger) shall determine the effective date (the “Increase Effective Date”) and the final allocation of the Commitment Increase, giving effect to the
occurrence of the Increase Effective Date. The Agent shall promptly notify the Borrower, the Lenders and the Arranger of such final allocation and the Increase Effective Date, and on the Increase Effective Date (i) the Aggregate Commitments
under, and for all purposes of, this Agreement shall be increased by the aggregate amount of the Commitment Increase, and (ii) the applicable Schedule to the Agreement shall be deemed modified, without further action, to reflect the revised
Commitments of the Lenders. 
 (f) Other Provisions That portion of the Commitment of each Lender and Additional
Commitment Lender constituting its portion of any Commitment Increase under this Section 2.18 (i) shall bear interest and be entitled to receive letter of credit fees and commitment fees at the rates provided for the existing Lenders,
(ii) shall terminate on the Termination Date, and (iii) shall otherwise be on the same terms as set forth in, and be entitled to the benefits of, this Agreement and the other Loan Documents. 

(g) Conflicting Provisions. This Section shall supersede any provisions in Sections 2.16 or 9.01 to the contrary. Each of the
parties hereto hereby agrees that, upon any Increase Effective Date, this Agreement shall be deemed amended to the extent (but only to the extent) necessary to reflect the existence and terms of the Commitment Increase, without need for further
consents pursuant to Section 9.01. Any such deemed amendment may be memorialized in writing by the Agent with the Borrower’s consent (not to be unreasonably withheld) and furnished to the other parties hereto. 

SECTION 2.19. Permitted Overadvances. 
 The Agent may, in its discretion, make Permitted Overadvances without the consent of the Lenders, the Swingline Lender and the L/C Issuing Bank, and each Lender shall be bound thereby. Any Permitted
Overadvance may constitute a Swingline Advance. A Permitted Overadvance is for the account of the Borrower and shall constitute a Base Rate Advance (or a Prime Rate Advance, as applicable) and an Obligation (as defined in the Guarantee and
Collateral Agreement) and shall be repaid by the Borrower in accordance with the provisions of 

  
 42 

 
Section 2.11(b). The making of any such Permitted Overadvance on any one occasion shall not obligate the Agent or any Lender to make or permit any Permitted Overadvance on any other occasion
or to permit such Permitted Overadvances to remain outstanding. The making by the Agent of a Permitted Overadvance shall not modify or abrogate any of the provisions of Article III regarding the Lenders’ obligations to purchase participations
with respect to Letters of Credit or of Section 2.04 regarding the Lenders’ obligations to purchase participations with respect to Swingline Advance. The Agent shall have no liability for, and no Loan Party or Credit Party shall have the
right to, or shall, bring any claim of any kind whatsoever against the Agent with respect to “inadvertent Overadvances” (i.e. where an Overadvance results from changed circumstances beyond the control of the Agent (such as a reduction in
the collateral value)) regardless of the amount of any such Overadvance(s). 
 ARTICLE III 

AMOUNT AND TERMS OF THE LETTERS OF CREDIT 
 SECTION 3.01. L/C Commitment. 
 (a) Subject to the terms and conditions
hereof, in reliance on the agreements of the other Lenders set forth in Section 3.04(a), the L/C Issuing Bank agrees from time to time to issue Letters of Credit for the account of the Borrower on any Business Day during the period from the
Commitment Effective Date until the Termination Date in such form as may be approved from time to time by the L/C Issuing Bank; provided that (i) after giving effect to such issuance, the L/C Obligations shall not exceed the L/C
Commitment or (ii) the face amount of the requested Letter of Credit, when aggregated with all other then outstanding Extensions of Credit, shall not exceed the Line Cap at such time. Each Letter of Credit shall (i) be denominated in
Canadian Dollars, Dollars or any other lawful foreign currency which is approved in writing on a case by case basis by the L/C Issuing Bank and the Agent in their sole and absolute discretion and (ii) expire no later than the earlier of
(x) the first anniversary of its date of issuance, or (y) subject to the provisions of Section 6.01(p), the date that is five (5) Business Days prior to the Termination Date, provided that any Letter of Credit with a
one-year term may provide for the renewal thereof for additional one-year periods (which, subject to the provisions of Section 6.01(p)) shall in no event extend beyond the date referred to in clause (y) above). From and after the
Commitment Effective Date, all Existing Letters of Credit shall be deemed to have been issued pursuant hereto, and shall be subject to and governed by, the terms and conditions hereof. 

(b) The L/C Issuing Bank shall not at any time be obligated to issue any Letter of Credit if (i) such issuance would conflict with,
or cause the L/C Issuing Bank or any Lender to exceed any limits imposed by, any applicable Requirement of Law, (ii) any order, judgment or decree of any Governmental Authority or arbitrator shall by its terms purport to enjoin or restrain the
L/C Issuing Bank from issuing such Letter of Credit, or any law applicable to the L/C Issuing Bank or any request or directive (whether or not having the force of law) from any Governmental Authority with jurisdiction over the L/C Issuing Bank shall
prohibit, or request that the L/C Issuing Bank refrain from, the issuance of letters of credit generally or such Letter of Credit in particular or shall impose upon the L/C Issuing Bank with respect to such Letter of Credit any restriction, reserve
or capital requirement (for which the L/C Issuing Bank is not otherwise compensated hereunder) not in effect on the Effective Date, or shall impose upon the L/C Issuing Bank any unreimbursed loss, cost or expense which was not applicable on the
Effective Date and which the L/C Issuing Bank in good faith deems material to it; (iii) such issuance would violate one or more policies of the L/C Issuing Bank applicable to letters of credit generally, or (iv) any Lender is at such time
a Defaulting Lender or Deteriorating Lender hereunder, unless the L/C Issuing Bank has entered into satisfactory arrangements with the Borrower or such Lender to eliminate the L/C Issuing Bank’s risk with respect to such Lender. 

SECTION 3.02. Procedure for Issuance of Letter of Credit. 

The Borrower may from time to time request that the L/C Issuing Bank issue a Commercial L/C or Standby L/C for its account by delivering
to the L/C Issuing Bank at its address for notices specified herein an Application therefor, completed to the satisfaction of the L/C Issuing Bank, and such other certificates, documents and other papers and information as the L/C Issuing Bank may
reasonably request. Upon receipt of any Application, the L/C Issuing Bank will process such Application and the certificates, documents and other papers and information delivered to it in connection therewith in accordance with its customary
procedures and shall endeavor to promptly 

  
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issue the Letter of Credit requested thereby (but in no event shall the L/C Issuing Bank be required to issue any Letter of Credit earlier than three Business Days after its receipt of the
Application therefor and all such other certificates, documents and other papers and information relating thereto) by issuing the original of such Letter of Credit to the beneficiary thereof or as otherwise may be agreed to by the L/C Issuing Bank
and the Borrower. The L/C Issuing Bank shall furnish a copy of such Letter of Credit to the Borrower promptly following the issuance thereof. The L/C Issuing Bank shall promptly notify the Agent of the issuance, extension or amendment of Letters of
Credit and any drawings or other payments under Letters of Credit. 
 SECTION 3.03. Fees and Other Charges. 

(a) The Borrower will pay a fee on all outstanding Letters of Credit at a per annum rate equal to the Applicable
Margin for Letters of Credit, in each case shared ratably among the Lenders based upon their respective Commitment Percentages, and payable monthly in arrears the 1st calendar day subsequent to the last day of each month after the issuance date. In addition, the Borrower shall pay to
the L/C Issuing Bank for its own account a fronting fee in an amount to be agreed upon by the L/C Issuing Bank and the Borrower (but in no event to exceed 0.125% per annum) on the undrawn and unexpired amount of each Letter of Credit, payable
monthly in arrears on the 1st calendar day subsequent to
the last day of each month after the issuance date. 
 (b) In addition to the foregoing fees, the Borrower shall pay or
reimburse the L/C Issuing Bank for such normal and customary costs and expenses as are incurred or charged by the L/C Issuing Bank in issuing, negotiating, effecting payment under, amending or otherwise administering any Letter of Credit, unless
otherwise agreed. 
 SECTION 3.04. Letter of Credit Participations. 

(a) The L/C Issuing Bank irrevocably agrees to grant and hereby grants to each Lender, and, to induce the L/C Issuing Bank to issue
Letters of Credit, each Lender irrevocably agrees to accept and purchase and hereby accepts and purchases from the L/C Issuing Bank, on the terms and conditions set forth below, for such Lender’s own account and risk an undivided interest equal
to such Lender’s Commitment Percentage in the L/C Issuing Bank’s obligations and rights under and in respect of each Letter of Credit and the amount of each draft paid by the L/C Issuing Bank thereunder. Each Lender agrees with the L/C
Issuing Bank that, if a draft is paid under any Letter of Credit for which the L/C Issuing Bank is not reimbursed in full by the Borrower in accordance with the terms of this Agreement, such Lender shall pay to the L/C Issuing Bank upon demand at
the L/C Issuing Bank’s address for notices specified herein an amount equal to such Lender’s Commitment Percentage of the amount of such draft, or any part thereof, that is not so reimbursed. Each Lender’s obligation to pay such
amount shall be absolute and unconditional and shall not be affected by any circumstance, including (i) any set-off, counterclaim, recoupment, defense or other right that such Lender or the Borrower may have against the L/C Issuing Bank, the
Borrower or any other Person for any reason whatsoever, (ii) the occurrence or continuance of a Default or an Event of Default or the failure to satisfy any of the other conditions specified in Article IV, (iii) any adverse change in the
condition (financial or otherwise) of the Borrower or any other Loan Party, (iv) any breach of this Agreement or any other Loan Document by the Borrower, any other Loan Party or any other Lender or (v) any other circumstance, happening or
event whatsoever, whether or not similar to any of the foregoing; provided that each Lender shall only be obligated to make any such payment in Canadian Dollars or Dollars (and not any foreign currency) in accordance with the provisions of
Section 3.10 hereof. 
 (b) If any amount required to be paid by any Lender to the L/C Issuing Bank pursuant to
Section 3.04(a) in respect of any unreimbursed portion of any payment made by the L/C Issuing Bank under any Letter of Credit is paid to the L/C Issuing Bank within three Business Days after the date such payment is due, such Lender shall pay
to the L/C Issuing Bank on demand an amount equal to the product of (i) such amount, times (ii) the daily average Federal Funds Rate or the BA Rate for a 30 day Interest Period, as applicable, during the period from and including the date
such payment is required to the date on which such payment is immediately available to the L/C Issuing Bank, times (iii) a fraction the numerator of which is the number of days that elapse during such period and

  
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the denominator of which is 360. If any such amount required to be paid by any Lender pursuant to Section 3.04(a) is not made available to the L/C Issuing Bank by such Lender within three
Business Days after the date such payment is due, the L/C Issuing Bank shall be entitled to recover from such Lender, on demand, such amount with interest thereon calculated from such due date at the rate per annum set forth in
Section 2.08(a)(i), for the Lenders, applicable to Base Rate Advances or Prime Rate Advances, as applicable. A certificate of the L/C Issuing Bank submitted to any Lender with respect to any amounts owing under this Section shall be conclusive
in the absence of manifest error. 
 (c) Whenever, at any time after the L/C Issuing Bank has made payment under any Letter of
Credit and has received from any Lender its pro rata share of such payment in accordance with Section 3.04(a), the L/C Issuing Bank receives any payment related to such Letter of Credit (whether directly from the Borrower or otherwise,
including proceeds of collateral applied thereto by the L/C Issuing Bank), or any payment of interest on account thereof, the L/C Issuing Bank will distribute to such Lender its pro rata share thereof; provided, however, that in
the event that any such payment received by the L/C Issuing Bank shall be required to be returned by the L/C Issuing Bank, such Lender shall return to the L/C Issuing Bank the portion thereof previously distributed by the L/C Issuing Bank to it.

 SECTION 3.05. Reimbursement Obligation of the Borrower. 

If any draft is paid under any Letter of Credit, the Borrower shall reimburse the L/C Issuing Bank for the amount of (a) the draft
so paid and (b) any taxes, fees, charges or other costs or expenses incurred by the L/C Issuing Bank in connection with such payment, not later than 12:00 Noon on (i) the Business Day that the Borrower receives notice of such draft, if
such notice is received on such day prior to 10:00 A.M. or (ii) if clause (i) above does not apply, the Business Day immediately following the day that the Borrower receives such notice; provided, that if the total reimbursement
amount set forth in clauses (a) or (b) above is not less than CAN$5,000,000 (or $5,000,000, as applicable) or CAN$500,000 (or $500,000, as applicable), respectively, the Borrower may, subject to the conditions to borrowing set forth
herein, request that such reimbursement be financed with a Base Rate Advance, Prime Rate Advance or Swingline Advance in an equivalent amount and, to the extent so financed, the Borrower’s obligation to make such payment shall be discharged and
replaced by the resulting Advance. Each such payment shall be made to the L/C Issuing Bank at its address for notices referred to herein in Canadian Dollars or Dollars (or if the Letter of Credit is issued in a currency other than Canadian Dollars
or Dollars, in such currency or the Canadian Dollar equivalent thereof calculated in accordance with the provisions of Section 3.10) and in immediately available funds. Interest shall be payable on any such amounts from the date on which the
relevant draft is paid until payment in full at the rate set forth in (x) until the Business Day next succeeding the date of the relevant notice, Section 2.08(a)(i) (for amounts denominated in Canadian Dollars) or 2.08(a)(iii) (for amounts
denominated in Dollars), and (y) thereafter, Section 2.08(b). 
 SECTION 3.06. Obligations Absolute.

 The Borrower’s obligations under this Article III shall be absolute and unconditional under any and all circumstances
and irrespective of any set-off, counterclaim or defense to payment that the Borrower may have or have had against the L/C Issuing Bank, any beneficiary of a Letter of Credit or any other Person. The Borrower also agrees with the L/C Issuing Bank
that the L/C Issuing Bank shall not be responsible for, and the Borrower’s Reimbursement Obligations under Section 3.05 shall not be affected by, among other things, the validity or genuineness of documents or of any endorsements thereon,
even though such documents shall in fact prove to be invalid, fraudulent or forged, or any dispute between or among the Borrower and any beneficiary of any Letter of Credit or any other party to which such Letter of Credit may be transferred or any
claims whatsoever of the Borrower against any beneficiary of such Letter of Credit or any such transferee. The L/C Issuing Bank shall not be liable for any error, omission, interruption or delay in transmission, dispatch or delivery of any message
or advice, however transmitted, in connection with any Letter of Credit, except for errors or omissions found by a final and nonappealable decision of a court of competent jurisdiction to have resulted from the gross negligence or willful misconduct
of the L/C Issuing Bank. The Borrower agrees that any action taken or omitted by the L/C Issuing Bank under or in connection with any Letter of Credit or the related drafts or documents, if done in the absence of gross negligence or willful
misconduct, shall be binding on the Borrower and shall not result in any liability of the L/C Issuing Bank to the Borrower. 

  
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 SECTION 3.07. Letter of Credit Payments. 

If any draft shall be presented for payment under any Letter of Credit, the L/C Issuing Bank shall promptly notify the Borrower of the
date and amount thereof. The responsibility of the L/C Issuing Bank to the Borrower in connection with any draft presented for payment under any Letter of Credit shall, in addition to any payment obligation expressly provided for in such Letter of
Credit, be limited to determining that the documents (including each draft) delivered under such Letter of Credit in connection with such presentment are substantially in conformity with such Letter of Credit. 

SECTION 3.08. Applications. 
 To the extent that any provision of any Application related to any Letter of Credit is inconsistent with the provisions of this Article III, the provisions of this Article III shall apply. 

SECTION 3.09. Use of Letters of Credit. 
 The Letters of Credit shall be available (and the Borrower agrees that it shall use such Letters of Credit) for general corporate purposes of the Borrower and its Subsidiaries. 

SECTION 3.10. Currency Equivalents Generally. 
 Any amount specified in this Agreement (including pursuant to Section 3.05 above) to be in a currency other than Canadian Dollars shall also include the equivalent of such amount in Canadian Dollars,
such equivalent amount to be determined by the Agent at such time on the basis of the Spot Rate (as defined below) for the purchase of such currency with Canadian Dollars. For purposes of this Section 3.10, the “Spot Rate” for a
currency means the rate quoted by the Canadian Reference Bank as the spot rate for the purchase by the Canadian Reference Bank of such currency with another currency at approximately 10:00 a.m. (Toronto time) on the date two (2) Business Days
prior to the date as of which the foreign exchange computation is made. 
 ARTICLE IV 

CONDITIONS TO EFFECTIVENESS 
 SECTION 4.01. Conditions Precedent to Effectiveness. 
 This Agreement shall
become effective on and as of the first date on which each of the following conditions precedent have been satisfied: 
 (a) The Agent’s receipt of the following, each of which shall be originals or telecopies or electronic transmission of pdf formatted copies (followed promptly by originals) unless otherwise
specified, each properly executed by an Authorized Officer of the signing Loan Party, each dated the Effective Date (or, in the case of certificates of governmental officials, a recent date before the Effective Date) and each in form and substance
satisfactory to the Agent and the Required Lenders: 
 (i) this Agreement duly executed by each of the Borrower,
the Agent, the Co-Collateral Agents, the L/C Issuing Bank and the Lenders. 
 (ii) the Security Documents
(including, without limitation, the Guarantee and Collateral Agreement), each duly executed by the applicable Loan Parties; 
 (iii) all other Loan Documents, each duly executed by the applicable Loan Parties; 
 (iv) such certificates of resolutions or other action, incumbency certificates and/or other certificates of Authorized Officers of each Loan Party as the Agent may reasonably require evidencing
(A) the authority of each Loan Party to enter into this Agreement and the other Loan Documents to which such Loan Party is a party or is to be a party and (B) the identity, authority

  
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and capacity of each Authorized Officer thereof authorized to act as an Authorized Officer in connection with this Agreement and the other Loan Documents to which such Loan Party is a party or is
to be a party; 
 (v) copies of each Loan Party’s organization or other governing documents and such other
documents and certifications as the Agent may reasonably require to evidence that each Loan Party is duly organized or formed, and that each Loan Party is validly existing, in good standing and qualified to engage in business in each jurisdiction
where failure to so qualify could reasonably be expected to have a Material Adverse Effect; 
 (vi) An opinion
of one or more special or local counsel to the Borrower and the other Loan Parties (other than Quebec counsel), addressed to the Agent and each Lender as to such matters as the Agent may reasonably request; 

(vii) a certificate signed by an Authorized Officer of the Borrower certifying (A) that the conditions specified in
Section 4.03 have been satisfied, (B) to the Solvency of the Loan Parties, taken as a whole, as of the Effective Date after giving effect to the transactions contemplated hereby, and (C) that the Perfection Certificate is true and
correct in all material respects; 
 (viii) evidence that all insurance required to be maintained pursuant to
Section 6.01(c) has been obtained and is in effect; 
 (ix) A Borrowing Base Certificate, duly completed
and executed by an Authorized Officer of the Borrower, together with supporting information satisfactory to the Agent in its Permitted Discretion, and dated as of August 1, 2010. 

(x) results of searches or other evidence reasonably satisfactory to the Agent (in each case dated as of a date
reasonably satisfactory to the Agent) indicating the absence of Liens on the assets of the Loan Parties, except for Liens permitted by Section 6.02(a); 
 (xi) results of such other diligence as the Agent and each of the Lenders may reasonably require, including compliance with “know your customer” and anti-money laundering rules and regulations,
including, without limitation, the Proceeds of Crime Act; 
 (xii) duly executed Credit Card Notifications and
Blocked Account Agreements required pursuant to Section 6.01(m); 
 (xiii) a duly executed agreement from
each Subsidiary of the Borrower which is not a Loan Party and which owns any real estate constituting a warehouse or DC that houses collateral or owns Related Intellectual Property, pursuant to which each such Subsidiary grants to the Agent a
rent-free or royalty-free (as applicable) license to use such real estate and Related Intellectual Property in connection with the Agent’s enforcement of its remedies under the Loan Documents with respect to the Collateral, during the
occurrence and continuation of an Event of Default; and 
 (xiv) such other customary certificates, documents or
consents as the Agent reasonably may require. 
 (b) All actions required by law or reasonably requested by the
Agent to be undertaken, and all documents and instruments, including PPSA financing statements, required by law or reasonably requested by the Agent to be filed, registered, or recorded to create or perfect the Liens intended to be created under the
Loan Documents and all such documents and instruments shall have been so filed, registered or recorded to the satisfaction of the Agent. 
 (c) Excess Availability on the Effective Date shall be equal to or greater than CAN$300,000,000. 

  
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 (d) The Agent shall have received a detailed forecast for the period
commencing on the Effective Date and ending with the end of the then next fiscal year, which shall include an availability model, Consolidated income statement, balance sheet, and statement of cash flow, by month, each prepared in conformity with
GAAP and consistent with the Loan Parties’ then current practices. 
 (e) The Loan Parties’ capital
structure shall be reasonably acceptable to the Agent. 
 (f) The Loan Parties’ accounts payable shall be
within stated invoice terms as of the Effective Date, or as permitted in the ordinary course of the Borrower’s business consistent with past practices. 
 (g) The conditions set forth in Section 4.03 shall have been satisfied. 
 (h) There shall have been no event or circumstance since January 30, 2010 that has had or could reasonably be expected to have, either individually or in the aggregate, a Material Adverse Effect.

 (i) There shall not be pending any litigation or other proceeding, the result of which, either individually
or in the aggregate, would reasonably be expected to have a Material Adverse Effect. 
 (j) All fees required to
be paid to the Agent, any Arranger or any Co-Collateral Agent on or before the Effective Date shall have been paid in full, and all fees required to be paid to the Lenders on or before the Effective Date shall have been paid in full. 

(k) The Borrower shall have paid all costs and expenses of the Agent and the Co-Collateral Agents (to the extent set
forth in Section 9.04(a)) incurred in connection with or relating to this Agreement and the other Loan Documents, including reasonable fees, charges and disbursements of counsel to the Agent and the Co-Collateral Agents, to the extent invoiced
prior to or on the Effective Date (provided that such payment shall not thereafter preclude a final settling of accounts between the Borrower and the Agent). 
 (l) No material changes in governmental regulations or policies affecting any Loan Party or any Credit Party shall have occurred prior to the Effective Date. 

SECTION 4.02. Conditions Precedent to Initial Extension of Credit. 

The obligation of each Lender to make the first Extension of Credit requested by the Borrower under this Agreement shall be subject to
the satisfaction of the following conditions precedent: 
 (a) The Effective Date shall have occurred. 

(b) The conditions set forth in Sections 4.01(b), (c), (f), (h) and (i) and Section 4.03 shall have been satisfied.

 (c) The Administrative Agent shall have received an opinion from Quebec counsel to the Borrower and the other Loan Parties,
addressed to the Agent and each Lender as to such matters as the Agent may reasonably request; 
 (d) The outstanding balance of
the Senior Notes shall have been paid in full (or shall be paid in full concurrently with the first Advance hereunder) and the documents and agreements evidencing the Senior Notes shall have been terminated and be of no further force and effect; and

 (e) The provisions of this Section 4.02 shall have been satisfied no later than September 20, 2010. 

  
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 SECTION 4.03. Conditions Precedent to Each Extension of Credit 

The obligation of each Lender to make an Extension of Credit on any date shall be subject to the conditions precedent that the Commitment
Effective Date shall have occurred and on the date of such Extension of Credit the following statements shall be true (and each of the giving of the applicable Notice of Borrowing or Application for a Letter of Credit, as the case may be, and the
acceptance by the Borrower of the proceeds of such Borrowing or the issuance of such Letter of Credit, as applicable, shall constitute a representation and warranty by the Borrower that on the date of such Borrowing or Letter of Credit issuance such
statements are true): 
 (i) the representations and warranties made by each Loan Party in or pursuant to the
Loan Documents are true and correct on and as of such date in all material respects, before and after giving effect to such Extension of Credit and to the application of the proceeds therefrom, as though made on and as of such date, except to the
extent that (A) such representations or warranties are qualified by a materiality standard, in which case they shall be true and correct in all respects, (B) such representations or warranties expressly relate to an earlier date (in which
case such representations and warranties shall be true and correct in all material respects as of such earlier date), and (C) such representations and warranties relate to Section 5.01(f), in which case the representation and warranty
shall be limited to clause (c) of the definition of “Material Adverse Effect”; 
 (ii) no event
has occurred and is continuing, or would result from such Extension of Credit or from the application of the proceeds therefrom, that constitutes a Default or an Event of Default; and 

(iii) after giving effect to such Extension of Credit, the Total Extensions of Credit will not exceed the Line Cap.

 SECTION 4.04. Effective Date 
 And Commitment effective Date. The Agent shall promptly notify the Lenders and the Borrower of the occurrence of the Effective Date and the Commitment Effective Date. 

ARTICLE V 

REPRESENTATIONS AND WARRANTIES 
 SECTION 5.01. Representations and Warranties of the Borrower. 
 The
Borrower hereby represents and warrants as follows: 
 (a) Each Loan Party (i) is duly organized and
validly existing under the laws of the jurisdiction of its organization or formation and (ii) is in compliance with all Requirements of Law except to the extent that the failure to comply therewith could not, in the aggregate, reasonably be
expected to have a Material Adverse Effect. 
 (b) The execution, delivery and performance by each Loan Party of
the Loan Documents to which it is a party, and the consummation of the transactions contemplated hereby or thereby, are within such Loan Party’s powers, have been duly authorized by all necessary organizational action, and do not contravene
(i) the charter or by-laws or other organizational or governing documents of such Loan Party or (ii) any law or any contractual restriction binding on or affecting any Loan Party, except, for purposes of this clause (ii), to the extent
such contravention would not reasonably be expected to have a Material Adverse Effect. 
 (c) No authorization
or approval or other action by, and no notice to or filing with, any governmental authority or regulatory body or any other third party is required for the due execution, delivery and performance by any Loan Party of any Loan Document to which it is
a party that has not already been obtained if the failure to obtain such authorization, approval or other action could reasonably be expected to result in a Material Adverse Effect. 

  
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 (d) Each Loan Document has been duly executed and delivered by each Loan
Party party thereto. This Agreement constitutes, and each other Loan Document will constitute upon execution, the legal, valid and binding obligation of each Loan Party party thereto enforceable against such Loan Party in accordance with its
respective terms subject to the effect of any applicable bankruptcy, insolvency, reorganization or moratorium or similar laws affecting the rights of creditors generally and subject to general principles of equity (regardless of whether enforcement
is sought in a proceeding at law or in equity). 
 (e) The consolidated balance sheet of the Borrower and its
Subsidiaries as at January 30, 2010, and the related consolidated statements of income and cash flows of the Borrower and its Subsidiaries for the fiscal year then ended, accompanied by an opinion of Deloitte & Touche LLP, independent
chartered accountants, copies of which have been furnished to the Agent, fairly present the consolidated financial condition of the Borrower and its Subsidiaries as at such date and the consolidated results of the operations of the Borrower and its
Subsidiaries for the period ended on such date, all in accordance with GAAP consistently applied. 
 (f) Since
January 30, 2010, there has been no event or circumstance, either individually or in the aggregate, that has had or would reasonably be expected to have a Material Adverse Effect. 

(g) There is no action, suit, investigation, litigation or proceeding, including any Environmental Action, which is
pending or, to the Borrower’s knowledge, threatened affecting the Borrower or any of its Subsidiaries before any court, Governmental Authority or arbitrator that would, either individually or in the aggregate, reasonably be expected to have a
Material Adverse Effect other than as reported in filings with the Ontario Securities Commission or any other Canadian federal or provincial securities regulatory authority made prior to the Effective Date. 

(h) All Canadian federal and provincial income tax returns and all other material tax returns which are required to be
filed have been filed by or on behalf of the Borrower and its Subsidiaries, and all taxes due with respect to the Borrower and its Subsidiaries pursuant to such returns or pursuant to any assessment received by the Borrower or any of its
Subsidiaries have been paid except to the extent permitted in Section 6.01(b). The charges, accruals and reserves on the books of the Borrower and its Subsidiaries in respect of taxes or other governmental charges have been made in accordance
with, and to the extent required by, GAAP. 
 (i) All written factual information heretofore furnished by the
Borrower or its Subsidiaries to the Agent or any Lender (including the Perfection Certificate) for purposes of or in connection with this Agreement or any other Loan Document, taken as a whole, was true and correct in all material respects on the
date as of which such information was stated or certified, provided that the Borrower makes no representations or warranties with respect to any projections or other nonfactual information contained in such information. 

(j)(i) Each Loan Party has title in fee simple to, or a valid leasehold interest in, all its real property, and good
title to, or a valid leasehold interest in, all its other property necessary for the conduct of its business and except as, in the aggregate, would not reasonably be expected to have a Material Adverse Effect, and (ii) no Inventory, Credit Card
Account Receivable, DC or Related Intellectual Property is subject to any Lien except as permitted by Section 6.02(a). 
 (k) Except as, in the aggregate, would not reasonably be expected to have a Material Adverse Effect: (i) each Loan Party owns, or is licensed to use, all Intellectual Property necessary for the
conduct of its business as currently conducted; (ii) no material claim has been asserted and is pending by any Person challenging or questioning the use of any Intellectual Property or the validity or effectiveness of any Intellectual Property,
nor does the Borrower know of any valid basis for any such claim; and (iii) the use of Intellectual Property by each Group Member does not infringe on the rights of any Person in any material respect. 

  
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 (l) As of the Effective Date, Schedule 5.01(l) lists all Canadian Pension
Plans currently maintained or contributed to by the Loan Parties. The Canadian Pension Plans are duly registered under all applicable provincial pension benefits legislation. All obligations of the Loan Parties (including fiduciary, funding,
investment and administration obligations) required to be performed in connection with the Canadian Pension Plans or the funding agreements therefor have been performed in a timely fashion in accordance with the terms of the Canadian Pension Plans
and applicable laws and regulations unless such non-compliance, either individually or in the aggregate, would not reasonably be expected to have a Material Adverse Effect. To the knowledge of the Borrower, there are as of the Effective Date no
outstanding disputes concerning the assets held pursuant to any Canadian Pension Plan or such funding agreement. All contributions or premiums required to be made by the Loan Parties to the Canadian Pension Plans have been made in a timely fashion
in accordance with the terms of the Canadian Pension Plans and applicable laws and regulations unless such non-compliance, either individually or in the aggregate, would not reasonably be expected to have a Material Adverse Effect. All employee
contributions to the Canadian Pension Plans required to be made by way of authorized payroll deduction have been properly withheld by the Loan Parties and fully paid into the Canadian Pension Plans in a timely fashion. All reports and disclosures
relating to the Canadian Pension Plans required by any applicable laws or regulations have been filed or distributed in a timely fashion unless such non-compliance, either individually or in the aggregate, would not reasonably be expected to have a
Material Adverse Effect. To the knowledge of the Borrower, there have been no improper withdrawals, or applications of, the assets of any of the Canadian Pension Plans. Except as set forth on Schedule 5.01 (l), as of the Effective Date, the
Canadian Pension Plans are fully funded both on an ongoing basis and on a solvency basis (using actuarial assumptions and methods which are consistent with the valuations last filed with the applicable Governmental Authorities and which are
consistent with generally accepted actuarial principles). To the knowledge of the Borrower, none of the Canadian Pension Plans is at the Effective Date the subject of an investigation, any other proceeding or any action or claim by any Governmental
Authority or any other Person, and to the knowledge of the Borrower, at the Effective Date there exists no state of facts which after notice or lapse of time or both could reasonably be expected to give rise to any such proceeding, action or claim.

 (m) Except as, individually or in the aggregate, would not reasonably be expected to result in a Material
Adverse Effect, no Group Member (i) has failed to comply with any Environmental Law or to obtain, maintain or comply with any permit, license or other approval required under any Environmental Law, (ii) has become subject to any
Environmental Liability, (iii) has received notice of any claim with respect to any Environmental Liability or (iv) knows of any basis for any Environmental Liability. 

(n) The Security Documents are effective to create in favor of the Agent, for the benefit of the Credit Parties, a legal,
valid and enforceable security interest in the Collateral described therein and proceeds thereof. When financing statements and other filings specified on Schedule 5.01(n) in appropriate form are filed in the offices specified on Schedule
5.01(n), the Security Documents shall, to the extent a security interest therein can be perfected by filing a PPSA financing statement, constitute a fully perfected Lien on, and security interest in, all right, title and interest of the Loan
Parties in such Collateral and the proceeds thereof, as security for the Obligations, in each case prior and superior in right to the Lien or claim of any other Person (except Liens permitted by Section 6.02(a) which by operation of law would
have priority over the Liens securing the Obligations). 
 (o) The Loan Parties, taken as a whole, are, and
after giving effect to the incurrence of all indebtedness and obligations incurred in connection herewith will be, Solvent. 
 (p) The properties of the Loan Parties are insured as required pursuant to Section 6.01(c) hereof. Each insurance policy required to be maintained by the Loan Parties pursuant to Section 6.01(c)
is in full force and effect and all premiums in respect thereof that are due and payable have been paid. 
 (q)
As of the Effective Date: (1) except as set forth in the Perfection Certificate, there are no outstanding rights to purchase any equity interests in any Subsidiary of a Loan Party, and (2) the copies of the organization and governing
documents of each Loan Party and each amendment hereto provided pursuant to Section 4.01 are true and correct copies of each such document, each of which is valid and in full force and effect. 

  
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 (r) As of the Effective Date, except as set forth on Schedule 5.01(r) or
would not reasonably be expected to have individually or in the aggregate, a Material Adverse Effect, (a) there are no strikes, lockouts, slowdowns or other material labor disputes against any Loan Party or any Subsidiary thereof pending or, to
the knowledge of the Borrower, threatened, (b) the hours worked by and payments made to employees of the Loan Parties comply with any applicable federal, provincial, local or foreign law dealing with such matters, (c) all payments due from
any Loan Party and its Subsidiaries, or for which any claim may be made against any Loan Party, on account of wages and employee health and welfare insurance and other benefits, have been paid or properly accrued in accordance with GAAP as a
liability on the books of such Loan Party. Except as set forth on Schedule 5.01(r) (as updated by the Borrower from time to time) no Loan Party or any Subsidiary is a party to or bound by any collective bargaining agreement, management
agreement or any material bonus, restricted stock, stock option, or stock appreciation plan or agreement or any similar plan, agreement or arrangement (excluding in each case individual employment agreements). There are no representation proceedings
pending or, to the knowledge of the Borrower, threatened to be filed with any labor relations board, and no labor organization or group of employees of any Loan Party or any Subsidiary has made a pending demand for recognition, in each case which
would individually or in the aggregate reasonably be expected to result in a Material Adverse Effect. There are no complaints, unfair labor practice charges, grievances, arbitrations, unfair employment practices charges or any other claims or
complaints against any Loan Party or any Subsidiary pending or, to the knowledge of the Borrower, threatened to be filed with any Governmental Authority or arbitrator based on, arising out of, in connection with, or otherwise relating to the
employment or termination of employment of any employee of any Loan Party or any of its Subsidiaries which would, individually or in the aggregate, be reasonably expected to result in a Material Adverse Effect. The consummation of the transactions
contemplated by the Loan Documents will not give rise to any right of termination or right of renegotiation on the part of any union under any collective bargaining agreement to which any Loan Party or any of its Subsidiaries is bound, except as
would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect. 
 (s) No
broker or finder brought about the obtaining, making or closing of the Advances or transactions contemplated by the Loan Documents, and, other than amounts payable pursuant to the Fee Letter and the GE Fee Letter, no Loan Party or Affiliate thereof
has any obligation to any Person in respect of any finder’s or brokerage fees in connection therewith. 

(t) The Loan Parties are not in breach or in default in any material respect of or under any Material Contract and have
not received any notice of the intention of any other party thereto to terminate any Material Contract. 
 (u)
The Borrower and each of its Subsidiaries are in compliance with (a) the Criminal Code (Canada), and (b) the Proceeds of Crime Act; and the Borrower and each of its Subsidiaries are in compliance in all material respects with all other
federal, provincial or territorial laws relating to “know your customer” and anti-money laundering rules and regulations. 
 ARTICLE VI 
 COVENANTS 

SECTION 6.01. Affirmative Covenants 
 So long as any Advance or other Obligation (other than contingent indemnification obligations for which no claim shall have then been asserted) shall remain unpaid, any Letter of Credit shall remain
outstanding (unless the same has been cash collateralized in an amount equal to 105% of the aggregate then undrawn and unexpired amount of such Letters of Credit and all other Reimbursement Obligations or back-to-back letters of credit from an
issuer and on terms acceptable to the L/C Issuing Bank have been provided in respect of such Letters of Credit) or any Lender shall have any Commitment hereunder, the Borrower will, and will cause each of its Subsidiaries to: 

  
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 (a) Compliance with Laws, Etc. Comply in all respects with all
applicable Requirements of Law, such compliance to include compliance with the Pensions Benefit Act (Ontario) and Environmental Laws, except for such noncompliance as would not reasonably be expected to have a Material Adverse Effect.

 (b) Payment of Taxes, Etc. Pay and discharge before the same shall become delinquent, (i) all
taxes, assessments and governmental charges or levies imposed upon it or upon its property (ii) all payments required to be made to any Canadian Pension Plan, and (iii) all lawful claims that, if unpaid, might by law become a Lien upon its
property; provided that neither the Borrower nor any of its Subsidiaries shall be required to pay or discharge any such tax, assessment, charge or claim (x) that is being contested in good faith and by proper proceedings and as to which
appropriate reserves are being maintained, unless and until any Lien resulting therefrom attaches to its property and becomes enforceable against its other creditors or (y) if such non-payments, either individually or in the aggregate, would
not be reasonably expected to have a Material Adverse Effect. 
 (c) Maintenance of Insurance. Maintain
insurance with responsible and reputable insurance companies or associations in such amounts and covering such risks as is consistent with prudent business practice; provided that the Borrower and its Subsidiaries may self insure to the
extent consistent with prudent business practice; provided further that policies maintained with respect to any Collateral located at a warehouse or DC shall provide coverage for Inventory at (x) the cost of such Inventory, consistent
with the Loan Parties’ past practices, or (y) a selling price permitted by the Agent in its Permitted Discretion. None of the Credit Parties shall be a co-insurer with any Loan Party or any other Person with respect to any fire and
extended coverage policies maintained with respect to any Collateral without the prior written consent of the Agent. On or before the Commitment Effective Date, fire and extended coverage policies maintained with respect to any Collateral shall be
endorsed or otherwise amended to include a non-contributing lenders’ loss payable clause, in form and substance reasonably satisfactory to the Agent, which endorsements or amendments shall provide that during a Cash Dominion Event, the insurer
shall pay all proceeds otherwise payable to the Loan Parties under the policies directly to the Agent and the Control Co-Collateral Agent, as their interests may appear. Within thirty (30) days following delivery of written notice from the
Agent to the Borrower, the Borrower shall notify the insurers and use commercially reasonable efforts to have such policies amended to include such other provisions as the Agent may reasonably require from time to time to protect the interests of
the Credit Parties. On or before the Commitment Effective Date, commercial general liability policies (or certificates evidencing such policies) shall be endorsed to name the Agent and the Control Co-Collateral Agent as additional insureds, as their
interests may appear. Each certificate delivered by the Loan Parties’ insurance broker or insurer with respect to each property insurance policy referred to in this Section 6.01(c) shall also provide that such policy shall not be canceled,
modified or not renewed other than upon not less than ten (10) days’ prior written notice thereof by the insurance broker, or insurer, as applicable, to the Agent. The Borrower shall deliver to the Agent, prior to the cancellation,
modification or non-renewal of any such policy of insurance, evidence of renewal or replacement of a policy previously delivered to the Agent, including an insurance binder therefor, together with evidence satisfactory to the Agent of payment of the
premium therefor and, upon request of the Agent, a copy of such renewal or replacement policy. In the event that the Borrower fails to maintain any such insurance as required pursuant to this Section 6.01(c), the Agent may obtain such insurance
on behalf of the Borrower and the Loan Parties shall reimburse the Agent as provided herein for all costs and expenses in connection therewith; the Agent’s obtaining of such insurance shall not be deemed a cure or waiver of any Default or Event
of Default arising from the Loan Parties’ failure to comply with the provisions of this Section 6.01(c). 
 (d) Preservation of Corporate Existence, Etc. Preserve and maintain its corporate existence, material rights (charter and statutory) and franchises; provided that (i) the Borrower and
its Subsidiaries may consummate any amalgamation, merger or consolidation permitted under Section 6.02(b); (ii) neither the Borrower nor any of its Subsidiaries shall be required to preserve or maintain the corporate existence of any
Subsidiary if the board of directors of the parent of such Subsidiary, or an executive officer of such parent to whom such board of directors has delegated the requisite authority, shall determine that the preservation and maintenance thereof is no
longer desirable in the conduct of the business of such parent and that the loss thereof is not disadvantageous in any material respect to the Borrower, such parent or the Lenders; and (iii) neither the Borrower nor any of its Subsidiaries
shall be required to preserve any right or 

  
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franchise if the board of directors of the Borrower or such Subsidiary shall determine that the preservation thereof is no longer desirable in the conduct of its business and that the loss
thereof is not disadvantageous in any material respect to the Borrower, such Subsidiary or the Lenders. 
 (e)
Inspection Rights. In addition to the Agent’s rights under Section 6.01(k) hereof, subject to reasonable confidentiality limitations and requirements imposed by the Borrower due to competitive concerns or otherwise, at any
reasonable time and from time to time (but no more than twice a year unless a Default or an Event of Default has occurred and is continuing), permit the Agent or any of the Lenders or any agents or representatives thereof, at the Lenders’
expense, to examine and make copies of and abstracts from the records and books of account of, and visit the properties of, the Borrower and any of its Subsidiaries, and to discuss the affairs, finances and accounts of the Borrower and any of its
Subsidiaries, as the case may be, with any of their officers or directors and with their independent chartered accountants. 
 (f) Keeping of Books. Keep proper books of record and account, in which full and correct entries shall be made of all financial transactions and the assets and business of the Borrower and each
such Subsidiary in accordance with GAAP in effect from time to time. 
 (g) Maintenance of Properties,
Etc. Except as otherwise permitted pursuant to Section 6.02(b), or where the failure to do so, either individually or in the aggregate, would not be reasonably expected to have a Material Adverse Effect, maintain and preserve all of its
properties that are used or useful in the conduct of its business in good working order and condition, ordinary wear and tear excepted. 
 (h) Transactions with Affiliates. Conduct all transactions otherwise permitted under this Agreement with any of their Affiliates on terms that are fair and reasonable and no less favorable to the
Borrower or its Subsidiaries than it would obtain in a comparable arm’s-length transaction with a Person not an Affiliate other than (i) as required by any applicable Requirement of Law, (ii) so long as no Default or Event of Default
has occurred and is continuing, transactions between or among the Loan Parties and any of their Subsidiaries, to the extent not prohibited hereunder, (iii) Restricted Payments permitted by Section 6.02(d), or (iv) if a Default or
Event of Default has occurred and is continuing, transactions in the ordinary course of business between or among the Loan Parties and any of their Subsidiaries and transactions between or among Loan Parties, to the extent not prohibited hereunder;
provided, that the foregoing shall not prohibit any Loan Party or any Subsidiary thereof from entering into employment arrangements with its officers and retention and other agreements with officers and directors pursuant to the reasonable
requirements of its business. 
 (i) Further Assurances. 

(i) With respect to any (i) Inventory, Credit Card Accounts Receivable and other Collateral (as defined in the
Guarantee and Collateral Agreement as in effect on the Effective Date) acquired after the Effective Date by any Group Member that is or is required to become a Loan Party hereunder and (ii) any property required to become subject to a perfected
Lien in favor of the Agent pursuant to Section 6.02(a)(vi) hereunder, promptly (i) execute and deliver to the Agent such amendments to the Guarantee and Collateral Agreement or such other documents as the Agent may reasonably request in
order to grant to the Agent, for the benefit of the Credit Parties, a security interest in such property and (ii) take all actions as the Agent may reasonably request to grant to the Agent, for the benefit of the Credit Parties, a perfected
security interest in such property with the priority required herein, including the filing of PPSA financing statements in such jurisdictions as may be required by any Security Document or by law or as may be requested by the Agent and the delivery
of Blocked Account and other control agreements as may be reasonably requested by the Agent. 
 (ii) With
respect to any new Subsidiary which is created or acquired after the Effective Date by any Group Member and which owns any Inventory, Credit Card Accounts Receivable or other Collateral (as defined in the Guarantee and Collateral Agreement as in
effect on the Effective Date) related to such receivables and Inventory, promptly cause such new Subsidiary to (i) become a party to the Guarantee and Collateral Agreement and the hypothec, if

  
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applicable, (ii) take such actions as the Agent may reasonably request to grant to the Agent, for the benefit of the Credit Parties, a security interest, with the priority and perfection
required herein, in the Collateral described in the Guarantee and Collateral Agreement and the hypothec, if applicable, held by such new Subsidiary, including, to the extent applicable, the filing of PPSA financing statements in such jurisdictions
as may be required by the Guarantee and Collateral Agreement, the hypothec or by law or as may be reasonably requested by the Agent and the delivery of Blocked Account and other control agreements, (iii) if requested by the Agent, deliver to
the Agent an officer’s certificate with respect to such Subsidiary in form and substance reasonably satisfactory to the Agent, and (iv) if requested by Agent, deliver to the Agent legal opinions relating to the matters described above,
which opinions shall be in form and substance, and from counsel, reasonably satisfactory to the Agent. 
 (iii)
With respect to any Dealer Stores, upon the request of the Agent (which request may be made only during the continuance of an Event of Default), assign of record any PPSA financing statements which have been filed in favor of the Loan Parties.

 (iv) In the event the Borrower or the other Loan Parties open a new deposit account in which funds of any of
the Loan Parties are concentrated, or commence concentrating funds in an existing deposit account that is not subject to a Blocked Account Agreement, at the request of the Agent, the Borrower shall deliver or cause to be delivered a Blocked Account
Agreement reasonably satisfactory in form and substance to the Agent with respect to such account. 
 (j)
Reporting Requirements. Furnish to the Agent: 
 (i) as soon as available and in any event within 50 days
after the end of each of the first three fiscal quarters of each fiscal year of the Borrower, (a) the consolidated balance sheet of the Borrower and its Subsidiaries as of the end of such quarter and consolidated statements of income and cash
flows of the Borrower and its Subsidiaries for the period commencing at the end of the previous fiscal year and ending with the end of such quarter, duly certified (subject to year-end audit adjustments) by an Authorized Officer of the Borrower as
having been prepared in accordance with GAAP and (b) a certificate of an Authorized Officer of the Borrower as to compliance with the terms of this Agreement and the other Loan Documents in the form of Exhibit G, including in reasonable
detail the calculations necessary to determine the Fixed Charge Ratio (whether or not compliance therewith is then required under Section 6.03), provided that in the event of any change in GAAP used in the preparation of such financial
statements, subject to Section 1.03, the Borrower shall also provide, if necessary for the calculation of the Fixed Charge Ratio, a statement of reconciliation conforming such financial statements to GAAP; 

(ii) as soon as available and in any event within 95 days after the end of each fiscal year of the Borrower, (a) a
copy of the annual audit report for such year for the Borrower and its Subsidiaries, containing the consolidated balance sheet of the Borrower and its Subsidiaries as of the end of such fiscal year and consolidated statements of income and cash
flows of the Borrower and its Subsidiaries for such fiscal year, in each case reported on without a “going concern” or like qualification or exception, or qualification arising out of the scope of the audit, by its board-appointed auditor
of national standing, and (b) a certificate of an Authorized Officer of the Borrower as to compliance with the terms of this Agreement and the other Loan Documents in the form of Exhibit G, including in reasonable detail the calculations
necessary to determine the Fixed Charge Ratio (whether or not compliance therewith is then required under Section 6.03), provided that in the event of any change in GAAP used in the preparation of such financial statements, the Borrower
shall also provide, if necessary for the calculation of the Fixed Charge Ratio, a statement of reconciliation conforming such financial statements to GAAP; 
 (iii) as soon as available and in any event within 10 Business Days of the end of each fiscal month, a Borrowing Base Certificate as of the end of the preceding fiscal month and supporting information
satisfactory to the Agent in its Permitted Discretion with respect to the determination of the Borrowing Base; provided, that upon the occurrence and during the 

  
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continuance of an Accelerated Borrowing Base Delivery Event, such Borrowing Base Certificate and supporting information shall be delivered on Friday of each week (or, if Friday is not a Business
Day, on the next succeeding Business Day), as of the close of business on the immediately preceding Saturday (it being understood that any weekly Borrowing Base Certificate shall constitute the Loan Parties’ best estimates of Net Eligible
Inventory and other items, as applicable); 
 (iv) promptly and in any event within five days after any
Authorized Officer of the Borrower has knowledge of the occurrence and continuance of a Default or Event of Default, a statement of an Authorized Officer of the Borrower setting forth details of such Default or Event of Default and the action that
the Borrower has taken and proposes to take with respect thereto; 
 (v) promptly after the sending or filing
thereof, copies of all quarterly and annual reports and proxy solicitations that the Borrower sends to its public security holders generally, and copies of all reports and prospectuses for the public offering of securities that the Borrower or any
of its Subsidiaries files with the Ontario Securities Commission, the Toronto Stock Exchange, or any other national or provincial securities exchange; 
 (vi) promptly after the commencement thereof, notice of all actions and proceedings before any court, governmental agency or arbitrator affecting the Borrower or any of its Subsidiaries of the type
described in Section 5.01(g); 
 (vii) as soon as available, but in any event no later than January 31
of each year, forecasts prepared by management of the Borrower for the Borrower and its Subsidiaries for the subsequent fiscal year and approved by the Borrower’s board of directors, in form satisfactory to the Agent and containing information
reasonably required by the Agent; 
 (viii) promptly after the filing thereof, a copy of any actuarial valuation
prepared by the Borrower’s actuary with respect to amounts to be funded under the Canadian Pension Plans that is required to be filed with FSCO; 
 (ix) promptly, notice of any event that Borrower or any other Loan Party reasonably believes has resulted in a Material Adverse Effect; 

(x) the financial and collateral reports described on Schedule 6.01(j), at the times set forth in such Schedule;
and 
 (xi) such other information respecting the Borrower or any of its Subsidiaries, or the Borrowing Base as
the Agent or any Lender through the Agent may from time to time reasonably request. 
 Reports and financial
statements required to be delivered by the Borrower pursuant to clauses (i)(a), (ii)(a) and (v) of this subsection (j) shall be deemed to have been delivered on the date on which the Borrower causes such reports, or reports containing such
financial statements, to be posted on the Internet at www.sedar.com or at such other website identified by the Borrower in a notice to the Agent and the Lenders and that is accessible by the Lenders without charge. 

(k) Collateral Monitoring and Review. Upon the request of the Agent or the Required Lenders, after reasonable
notice and during normal business hours, permit the Agent or professionals (including, consultants, accountants, and/or appraisers) retained by the Agent to conduct appraisals, commercial finance examinations and other evaluations, including,
without limitation, of (i) the Loan Parties’ practices in the computation of the Borrowing Base and (ii) the assets included in the Borrowing Base and financial information such as, but not limited to, sales, gross margins, payables,
accruals and reserves, related to the calculation of the Borrowing Base. The Borrower shall pay the reasonable out-of-pocket fees and expenses of the Agent and the Co-Collateral Agents to the extent provided in the Co-Collateral Agent Rights Letter

  
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(including, without limitation, the reasonable charges of professionals) in connection with one inventory appraisal and one commercial finance examination each fiscal year (which the Agent shall
be obligated to undertake for the benefit of the Credit Parties), provided, however, notwithstanding the foregoing, (x) if Excess Availability is at any time less than or equal to 65% of the Line Cap but greater than 20% of the
Line Cap, the Agent may, in its discretion, undertake a second inventory appraisal and second commercial finance examination in a given fiscal year at such time at the Borrower’s expense, (y) if Excess Availability is less than or equal to
20% of the Line Cap, the Agent may in its discretion, undertake up to three inventory appraisals and three commercial finance examinations each fiscal year at the Borrower’s expense. Notwithstanding the foregoing, the Agent may cause
(i) additional appraisals and commercial finance examinations to be undertaken (A) as it in its Permitted Discretion deems necessary or appropriate, at its own expense or, (B) if any Event of Default has occurred and is continuing or
if required by applicable law, at the expense of the Borrower. In connection with any inventory appraisal and commercial finance examination relating to the computation of the Borrowing Base, the Borrower shall make such adjustments to the
calculation of the Borrowing Base as the Agent shall, after the expiration of the Reserve Notice Period, reasonably require in its Permitted Discretion based upon the terms of this Agreement and the results of such inventory appraisal and commercial
finance examination. Any inventory appraisal or commercial finance examination requested by the Agent shall be scheduled at such time as the Agent, in consultation with the Borrower, may agree in order to minimize any disruption to the conduct of
the Borrower’s business. 
 (l) Landlord Waivers, Access Agreements and Customs Broker Agreements.
(i) Use commercially reasonable efforts to obtain from each unaffiliated lessor leasing a DC at which Collateral is located to a Loan Party, consents, approvals, Lien waivers and rights to access and occupy each such DC (including, without
limitation, to take possession and dispose of any Collateral from each such DC upon the occurrence and during the continuance of an Event of Default) reasonably satisfactory to the Agent; (ii) obtain from each Subsidiary of the Borrower owning
a DC at which Collateral is located, consents, approvals, Lien waivers and rights to access and occupy each such DC (including, without limitation, to take possession and dispose of the Collateral from each such DC upon the occurrence and during the
continuance of an Event of Default) reasonably satisfactory to the Agent; (iii) use commercially reasonable efforts to cause each Loan Party’s customs brokers to deliver an agreement (including, without limitation, a Customs Broker
Agreement) to the Agent covering such matters and in such form as the Agent may reasonably require; and (iv) with respect to any property or assets not constituting Collateral and subject to the Lien of a third party, if requested by the Agent,
use commercially reasonable efforts to cause (but shall not be required to cause as a condition of the granting of such Lien) the holder of such Lien to enter into an agreement reasonably satisfactory to the Agent, permitting the Agent to use such
property and assets, at no cost or expense to the Agent, in connection with the disposition of any of the Collateral by the Agent during the continuance of an Event of Default. 

(m) Cash Management. 
 (i) On or prior to the Effective Date or such later date as the Agent may agree: 
 (A) deliver to the Agent copies of notifications (each, a “Credit Card Notification”) substantially in the form attached hereto as Exhibit E which have been executed on behalf of
such Loan Party and addressed to such Loan Party’s credit card clearinghouses and processors listed in the Perfection Certificate (collectively, the “Credit Card Processors”); and 

(B) enter into a Blocked Account Agreement reasonably satisfactory in form and substance to the Agent with each Blocked
Account Bank covering the deposit accounts set forth on Schedule 6.01(m)(i)(B) (collectively, the “Blocked Accounts”). 
 (ii) The Loan Parties shall ACH or wire transfer daily (or with respect to DDAs that have historically not been swept daily (and other DDAs with the consent of the Agent, not to be unreasonably withheld),
periodically, consistent with past practices) (and whether or not there are then any outstanding Obligations and whether or not a Cash Dominion Event then exists) to a 

  
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Blocked Account all amounts on deposit in each DDA of such Loan Party, other than DDAs that are Excluded Accounts; provided that such covenant shall not apply to (i) any minimum
balance as may be required to be kept in the subject DDA by the depository institution at which such DDA is maintained or (ii) if greater, any amounts maintained by the Loan Parties in such DDAs (and other DDAs with the consent of the Agent,
not to be unreasonably withheld) in the ordinary course of business consistent with past practices). The Loan Parties shall ACH or wire transfer daily to a Blocked Account all payments due from credit card processors and other proceeds of any of the
Collateral. All funds in each DDA and Blocked Account (other than Excluded Accounts) shall be conclusively presumed to be Collateral and proceeds of Collateral and the Agent and the Lenders shall have no duty to inquire as to the source of the
amounts on deposit in any DDA or Blocked Account. 
 (iii) Each Credit Card Notification shall be held by the
Agent until the occurrence of a Cash Dominion Event. After the occurrence and during the continuance of a Cash Dominion Event, the Agent may deliver such Credit Card Notifications to the applicable Credit Card Processors. Each Credit Card
Notification shall instruct the applicable Credit Card Processor to follow the instructions of the Control Co-Collateral Agent with respect to all amounts as may become due from time to time from such Credit Card Processor to the applicable Loan
Party. 
 (iv) Each Blocked Account Agreement shall permit the Agent, after the occurrence and during the
continuance of a Cash Dominion Event, to require or cause the ACH or wire transfer no less frequently than daily (and whether or not there are then any outstanding Obligations) to the Agent’s Account, of all cash receipts and collections held
in each applicable Blocked Account (net of any minimum balance, not to exceed CAN$10,000 (or such greater amount with the consent of the Agent, not to be unreasonably withheld), as may be required to be kept in the subject Blocked Account by the
Blocked Account Bank), including, without limitation, the following: 
 (A) all available cash receipts from
the sale of Inventory and other Collateral; 
 (B) all proceeds of collections of Credit Card Accounts
Receivable; 
 (C) all proceeds from any casualty or other insured damage to, or any taking under power of
eminent domain or by condemnation or similar proceeding of any Collateral; and 
 (D) all Net Proceeds from any
equity issuance by any Loan Party or its Subsidiaries. 
 The Borrower shall be deemed to have complied with
the provisions of this clause (iv) if they cause the ACH or wire transfer daily of all funds which an Authorized Officer of the Borrower in good faith believes to be the amount deposited in the Blocked Accounts in excess of CAN$10,000 (or such
greater amount as permitted above in this clause (iv)). 
 (v) The Agent’s Account shall at all times be
under the sole dominion and control of the Agent. The Loan Parties hereby acknowledge and agree that (i) the Loan Parties have no right of withdrawal from the Agent’s Account, (ii) the funds on deposit in the Agent’s Account
shall at all times be collateral security for all of the Obligations, and (iii) the funds on deposit in the Agent’s Account shall be applied as provided in this Agreement. In the event that, notwithstanding the provisions of this
Section 6.01(m), during the continuance of a Cash Dominion Event, any Loan Party receives or otherwise has dominion and control of any such proceeds or collections, such proceeds and collections shall be held in trust by such Loan Party for the
Agent, shall not be commingled with any of such Loan Party’s other funds or deposited in any account of such Loan Party and shall, not later than the Business Day after receipt thereof, be

  
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deposited into the Agent’s Account or dealt with in such other fashion as such Loan Party may be instructed by the Agent. During the continuance of a Cash Dominion Event, the amounts
deposited into the Agent’s Account shall be applied to the prepayment of the Obligations then outstanding; provided that upon payment in full of such outstanding Obligations, any remaining amounts will be released and transferred to a
deposit account of the Loan Parties as the Borrower shall direct and the existence of a Cash Dominion Event (other than as the result of the occurrence of an Event of Default) shall not, in and of itself, impair the right of the Borrower to
Revolving Advances in accordance with the terms hereof. 
 (vi) Upon the request of the Agent, the Loan Parties
shall cause bank statements and/or other reports to be delivered to the Agent not less often than monthly, accurately setting forth all amounts deposited in each Blocked Account to ensure the proper transfer of funds as set forth above. 

(n) Liens on Non-Collateral Assets. In the event of the incurrence of Debt and the granting of a Lien pursuant to
Section 6.02(a)(vi) hereof, grant, and cause each of its Subsidiaries to, grant the Agent, as security for the Obligations, a Lien on the assets of the Borrower or any of its Subsidiaries which is the subject of the Lien of the Person holding
such Debt (to the extent that such assets do not then constitute Collateral) pursuant to Section 6.02(a)(vi) hereof. 
 (o) Physical Inventories. Cause physical inventories and periodic cycle counts to be undertaken, at the expense of the Loan Parties, in each case consistent with past practices (but in no event
less frequently than one physical inventory per fiscal year), conducted by such inventory takers and following such methodology as is consistent with the immediately preceding inventory or as otherwise may be satisfactory to the Agent in its
Permitted Discretion. The Agent, at the expense of the Loan Parties, may participate in and/or observe each scheduled physical count of Inventory which is undertaken on behalf of any Loan Party. The Loan Parties, within five (5) days following
the completion of any such inventory, shall provide the Agent with a reconciliation of the results of such inventory (as well as of any other physical inventory or cycle counts undertaken by a Loan Party) and shall post such results to the Loan
Parties’ stock ledgers and general ledgers, as applicable. 
 (p) Letters of Credit. In the event
that the Loan Parties request that any Letter of Credit have an expiry after the Termination Date and the L/C Issuing Bank in its discretion, issues such Letter of Credit, deposit in a cash collateral account of the Agent, an amount equal to 105% of
the L/C Obligations with respect to any such Letter of Credit, in the same currency as the applicable Letter of Credit is issued, on or before the date that is (10) Business Days prior to the Termination Date,. 

(q) Application under the CCAA. The Borrower acknowledges that its business and financial relationships with the
Agent, the Co-Collateral Agents and the Lenders are unique from its relationship with any other of its creditors. The Borrower agrees that it shall not file any plan of arrangement under the CCAA (the “CCAA Plan”) which provides
for, or would permit, directly or indirectly, the Agent, the Co-Collateral Agents or the Lenders to be classified with any other creditor of the Loan Parties for purposes of such CCAA Plan or otherwise. 

(r) Canadian Pension Plans. Administer the Canadian Pension Plans in accordance with the requirements of the
applicable pension plan texts, funding agreements, any other documents governing the Canadian Pension Plans, the ITA and applicable federal or provincial pension benefits legislation except for any non-compliance which would not reasonably be
expected to have a Material Adverse Effect. Without the prior written consent of the Agent, the Borrower shall not, and shall not permit any of its Subsidiaries to, terminate, or cause to be terminated, any of the Canadian Pension Plans, if such
Canadian Pension Plan would have a wind up deficiency on termination in an amount which would reasonably be expected to have a Material Adverse Effect. The Borrower shall, and shall cause its Subsidiaries to, promptly provide the Agent with any
documentation relating to any of the Canadian Pension Plans as the Agent may request. The Borrower shall, and shall cause its Subsidiaries to, notify the Agent within thirty (30) days of: (i) a material increase in the obligations,
liabilities and indebtedness of any of the Canadian Pension Plans; and (ii) commencing payment of contributions to a Canadian Pension Plan to which the Borrowers had not previously been contributing. 

  
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 (s) Compliance with Terms of Leaseholds. Except as otherwise
expressly permitted hereunder, and except, in each case, where the failure to do so, either individually or in the aggregate, would not reasonably be expected to have a Material Adverse Effect, make all payments and otherwise perform all obligations
in respect of all leases of real property to which the Borrower or any of its Subsidiaries is a party, keep such leases in full force and effect and not allow such leases to lapse or be terminated or any rights to renew such leases to be forfeited
or cancelled, notify the Agent of any default by any party with respect to such leases and cooperate with the Agent in all respects to cure any such default. 
 (t) Material Contracts. Perform and observe all the terms and provisions of each Material Contract to be performed or observed by them, maintain each such Material Contract in full force and effect
in accordance with its terms (subject to amendments, modifications or waivers permitted by Section 6.02(l)), enforce each such Material Contract in accordance with its terms, take all such action to such end as may be from time to time
reasonably requested by the Agent and, upon the reasonable request of the Agent, make to each other party to each such Material Contract such demands for information and reports or for action as the Borrower or any of its Subsidiaries is entitled to
make under such Material Contract. 
 SECTION 6.02. Negative Covenants. 

So long as any Advance or other Obligation (other than contingent indemnification obligations for which no claim shall have then been
asserted) shall remain unpaid, any Letter of Credit shall remain outstanding (unless the same has been cash collateralized in an amount equal to 105% of the aggregate then undrawn and unexpired amount of such Letters of Credit and all other
Reimbursement Obligations or back-to-back letters of credit from an issuer and on terms acceptable to the L/C Issuing Bank have been provided in respect of such Letters of Credit) or any Lender shall have any Commitment hereunder, each of the
Borrower will not, and will not permit any of its Subsidiaries to: 
 (a) Liens, Etc. Create or suffer to
exist any Lien upon property of the Borrower or any Subsidiary constituting Inventory, Credit Card Accounts Receivable or any other Collateral (as defined in the Guarantee and Collateral Agreement or the hypothec as in effect on the Effective Date)
or any Related Intellectual Property, other than: 
 (i) Permitted Liens, 

(ii) the Liens existing on the Effective Date and described in the Perfection Certificate, 

(iii) the replacement, extension or renewal of any Lien permitted by clause (ii) above upon or on the same property
theretofore subject thereto (and on any additions to any such property and in any property taken in replacement or substitution for any such property), or the replacement, extension or renewal (without increase in the amount) of the Debt secured
thereby, 
 (iv) to the extent any Liens permitted by clause (ii) above are terminated (and not replaced,
extended or renewed in accordance with clause (iii) above), Liens not otherwise permitted by clause (iii) above securing Debt in an amount up to the amount of Debt secured by such terminated Liens; provided that (A) any such
Lien (and the Debt secured thereby) shall be incurred no later than ninety (90) days after the termination of the Lien permitted by clause (ii) above, and (B) any such Lien shall be granted on the same property (and on any additions
to such property or any property taken by the Loan Parties in replacement or substitution for such property) as the terminated Lien, 
 (v) Liens on Related Intellectual Property with Persons that have entered into an agreement, reasonably satisfactory to the Agent, acknowledging the limited license granted to the Agent in such trademarks
or trade names pursuant to the Loan Documents and agreeing to abide by, and not interfere with, such limited license; and 

  
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 (vi) Liens to secure Debt of the Borrower for borrowed money, in an
aggregate principal amount not to exceed CAN$400,000,000 at any time outstanding, provided, that, (A) no Default or Event of Default then exists or would arise from the incurrence of such Debt or the granting of such Lien,
(B) Pro Forma and Projected Excess Availability is at least fifteen percent (15%) of the Line Cap after giving effect to the incurrence of any such Debt, (C) the Pro Forma Fixed Charge Ratio shall be at least 1.1 to 1.0 after giving
effect to the incurrence of any such Debt, (D) such Lien shall be subordinate to the Lien of the Agent in respect of the Collateral and the holder of such Lien shall have entered into an intercreditor agreement in such form as the Agent may
reasonably agree, and (E) if the Debt secured by such Liens is secured by both Collateral and by property and assets of any Loan Party which do not constitute Collateral, the Agent shall have obtained a Lien on such property and assets that do
not otherwise constitute Collateral to secure the Obligations, subordinate to the Lien of the holder of such Debt pursuant to an intercreditor agreement in such form as the Agent may reasonably agree, and (F) the documentation granting such
Lien shall be in form and substance reasonably satisfactory to the Agent in its Permitted Discretion. 
 (b)
Fundamental Changes. Amalgamate with, merge into or consolidate with any other Person, or permit any other Person to amalgamate with, merge into or consolidate with it, or sell, transfer, lease or otherwise dispose of (in one transaction or
in a series of transactions) all or substantially all of its assets (in each case, whether now owned or hereafter acquired), or liquidate or dissolve, except that, if at the time thereof and immediately after giving effect thereto no Default or
Event of Default shall have occurred and be continuing (i) any Subsidiary of the Borrower may amalgamate, merge or consolidate with or into the Borrower or any other Subsidiary of the Borrower; provided that (A) if the Borrower is a party
to such amalgamation, merger or consolidation, the Borrower shall be the continuing or surviving entity, (B) if any Subsidiary Guarantor is a party to such amalgamation, merger or consolidation (other than with the Borrower), a Subsidiary
Guarantor shall be the continuing or surviving entity or the continuing, surviving, successor or transferee entity shall become a Subsidiary Guarantor, and (C) none of Cantrex Group, Inc, Sears Floor Covering Centres Inc./Centres de Reouvrement
de Sol Sears Inc, or S.L.H. Transport, Inc. may amalgamate, merge or consolidate with or into a Loan Party, (iii) any Subsidiary of the Borrower may sell, transfer, lease or otherwise dispose of its assets to any other Subsidiary of the
Borrower (provided that no Loan Party, shall sell, transfer, lease or otherwise dispose of its assets to any Subsidiary that is not a Loan Party), (iv) any Subsidiary of the Borrower other than the Loan Parties may sell, transfer, lease or
otherwise dispose of its assets to a Person that is not a Subsidiary through transactions which are undertaken in the ordinary course of its business or determined by the Borrower in good faith to be in the best interests of the Borrower and its
Subsidiaries, (v) any Subsidiary of the Borrower other than the Loan Parties may liquidate or dissolve if the Borrower determines in good faith that such liquidation or dissolution is in the best interests of the Borrower and its Subsidiaries
and is not materially disadvantageous to the Lenders, and (vi) the Borrower or any Subsidiary of the Borrower may amalgamate, merge or consolidate with or into a Person that is not a Subsidiary of the Borrower in connection with an Acquisition
permitted by Section 6.02(c) or to effect any Permitted Disposition under clause (g) thereof, provided that that (A) if the Borrower is a party to such amalgamation, merger or consolidation, the Borrower shall be the continuing or
surviving entity, and (B) if any Subsidiary Guarantor is a party to such amalgamation, merger or consolidation (other than with the Borrower), a Subsidiary Guarantor shall be the continuing or surviving entity or the continuing, surviving,
successor or transferee entity shall become a Subsidiary Guarantor. 
 (c) Acquisitions. Make any
Acquisition unless (i) at the time of any such Acquisition and immediately after giving effect thereto, no Default or Event of Default shall have occurred and be continuing, and (ii) after giving effect to any such Acquisition (A) Pro
Forma and Projected Excess Availability is at least 25% of the Line Cap, (B) the Pro Forma Fixed Charge Ratio shall be at least 1.1 to 1.0, and (C) immediately after giving effect to any such Acquisition, the Borrower shall comply with
Section 6.01(i) to the extent applicable. 

  
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 (d) Restricted Payments. 

(i) Declare or make, or agree to pay or make, directly or indirectly, any Restricted Payment, if at the date of
declaration thereof (either before or immediately after giving effect thereto and the payment thereof), a Default or Event of Default shall have occurred and be continuing, except that at any time that a Default or Event of Default shall exist and
be continuing, (A) the Borrower may declare and pay dividends with respect to its equity interests payable solely in additional shares of its common stock, (B) Subsidiaries of the Borrower may declare and pay dividends to the Borrower or
another wholly owned Subsidiary of the Borrower and (C) non-wholly-owned Subsidiaries may declare and pay dividends to the holders of their equity interests other than a Group Member on a ratable basis. 

(ii) Declare or make, or agree to pay or make, directly or indirectly, any other Restricted Payment (other than a
Restricted Payment to a Loan Party and, on a ratable basis in the case of an entity other than a Loan Party, to the holders of its equity interests), except that if no Default or Event of Default shall have occurred and be continuing (either before
or immediately after giving effect thereto and the payment thereof): 
 (A) the Borrower may make Restricted Payments
consisting of cash dividends or other distributions to the Parent or any indirect parent of the Borrower, so long as such dividends or other distributions are not made with the proceeds of Revolving Advances or with any Net Proceeds referred to in
clause (C) below); 
 (B) the Borrower and its Subsidiaries may make Restricted Payments with the proceeds of Revolving
Advances provided, that, (i) immediately after giving effect to any such Restricted Payment, on a pro forma basis, (x) Excess Availability is greater than 10% of the Line Cap and (y) the Pro Forma Fixed Charge Ratio, calculated
on a trailing four quarters basis, is at least 1.5:1.0, or (ii) immediately after giving effect to any such Restricted Payment, (x) Pro Forma and Projected Excess Availability is greater than 20% of the Line Cap, and (y) the Pro Forma
Fixed Charge Ratio is at least 1.1:1.0; and 
 (C) the Borrower and its Subsidiaries may make other Restricted Payments
(1) from the Net Proceeds of any common stock issuances by the Borrower after the Effective Date, (2) from the Net Proceeds of any Permitted Dispositions of the type set forth in clauses (f) and (g) of the definition thereof, and
(3) from any dividends and distributions received (directly or indirectly) on account of equity interests in any Subsidiary of the Borrower which is not a Loan Party, provided, that in each case, immediately after giving effect thereto,
the Pro Forma and Projected Excess Availability is at least 15% of the Line Cap. 
 (e) Negative Pledge
Clauses. Enter into or suffer to exist or become effective any agreement that prohibits or limits the ability of the Borrower or any Subsidiary of the Borrower to create, incur, assume or suffer to exist any Lien in favor of the Agent upon any
of their property or revenues, whether now owned or hereafter acquired, other than any agreement relating to any Lien not prohibited by Section 6.02(a) (provided that any prohibition or limitation shall apply only to the assets subject to such
Lien). 
 (f) Clauses Restricting Subsidiary Distributions. Enter into or suffer to exist or become
effective any consensual encumbrance or restriction on the ability of any Subsidiary of the Borrower other than a Loan Party to (a) make Restricted Payments in respect of any equity interests of such Subsidiary held by, or pay any indebtedness
owed to, the Borrower or any other Subsidiary of the Borrower, (b) make loans or advances to, or other investments in, the Borrower or any other Subsidiary of the Borrower or (c) transfer any of its assets to the Borrower or any other
Subsidiary of the Borrower, except for such encumbrances or restrictions existing under or by reason of (i) any restrictions existing under this Agreement and the other Loan Documents; (ii) any restrictions with respect to a Subsidiary
imposed pursuant to an agreement that has been entered into in connection with the disposition of all or any portion of the equity interests or assets of such Subsidiary; (iii) the provisions contained in any existing indebtedness (and in any
refinancing of such indebtedness so long as no more restrictive than those contained in the respective existing indebtedness so refinanced); (iv) customary provisions restricting subletting or assignment of any lease governing a leasehold
interest of the Borrower or a Subsidiary of the Borrower entered into in the ordinary 

  
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course of business, (v) customary restrictions and conditions contained in the documents relating to any Lien, so long as such Lien is not prohibited hereunder and such restrictions or
conditions relate only to the specific asset subject to such Lien; (vi) customary provisions restricting assignment of any contract entered into by the Borrower or any Subsidiary of the Borrower in the ordinary course of business,
(vii) any agreement or instrument governing acquired debt, which restriction is not applicable to any Person or the properties or assets of any Person, other than the Person or the properties or assets of the Person acquired pursuant to the
respective acquisition and so long as the respective encumbrances or restrictions were not created (or made more restrictive) in connection with or in anticipation of the respective acquisition; (viii) customary provisions restricting the
assignment of licensing agreements, management agreements or franchise agreements entered into by the Borrower or any of its Subsidiaries in the ordinary course of business; (ix) restrictions on the transfer of assets securing purchase money
obligations and capitalized lease obligations; (x) customary net worth provisions contained in real property leases entered into by Subsidiaries of the Borrower, so long as the Borrower has determined in good faith that such net worth
provisions could not reasonably be expected to impair the ability of the Borrower and its Subsidiaries to meet their ongoing obligations. 
 (g) Accounting Changes. Make or permit any change in accounting policies or reporting practices, except as required or permitted by GAAP. 

(h) Dispositions. Make any Disposition except Permitted Dispositions. 

(i) Debt; Prepayment of Debt. 

(i) Create, incur, assume, suffer to exist or otherwise become or remain liable with respect to, any Debt, except
Permitted Debt. 
 (ii) Prepay any Debt with proceeds of Advances unless (a) at the time of any such
prepayment and immediately after giving pro forma effect thereto, no Default or Event of Default shall have occurred and be continuing, and (b) after giving effect to any such prepayment (A) Pro Forma and Projected Excess Availability is
at least 25% of the Line Cap and (B) the Pro Forma Fixed Charge Ratio shall be at least 1.1 to 1.0. 
 (j)
Investments. Make any Investments, except Permitted Investments. 
 (k) Store Closings. Close more
than ten percent (10%) of the Loan Parties’ Stores existing on the Effective Date in any fiscal year without the consent of the Agent, such consent not to be unreasonably withheld and/or fail to comply with the requirements of the
definition of Store Closure Sale when and as applicable. 
 (l) Amendment of Material Documents. Amend,
modify or waive any of the Borrower’s rights under (a) its organization documents in a manner materially adverse to the Credit Parties, or (b) any Material Contract, in each case to the extent that such amendment, modification or
waiver would be reasonably likely to have a Material Adverse Effect. 
 SECTION 6.03. Financial Covenant. 

During the continuance of a Covenant Compliance Event, the Borrower will not permit the Fixed Charge Ratio, calculated quarterly on a
trailing four quarters basis, to be less than 1.1 to 1.0 commencing with the fiscal quarter end immediately preceding the occurrence of such Covenant Compliance Event. 

  
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 ARTICLE VII 
 EVENTS OF DEFAULT 
 SECTION 7.01. Events of Default. 

If any of the following events (“Events of Default”) shall occur and be continuing: 

(a) The Borrower shall fail to pay (i) any principal of any Advance or Reimbursement Obligation when the same
becomes due and payable, or (ii) any interest on any Advance or Reimbursement Obligation or any fees, or any other amounts payable under this Agreement or any other Loan Document, in each case under this clause (ii), within three (3) days
after the same becomes due and payable; or 
 (b) Any representation or warranty made by any Loan Party herein
or in any other Loan Document shall prove to have been incorrect in any material respect when made; or 
 (c)
(i) Any Loan Party shall fail to perform or observe any term, covenant or agreement contained in Section 6.01 (d), (e), (h), (j) (other than 6.01(j)(viii)), (k), or (m) 6.02 or 6.03 of this Agreement or (ii) any Loan Party shall
fail to perform or observe any other term, covenant or agreement contained in this Agreement or any other Loan Document, if such failure shall remain unremedied for thirty (30) days after written notice thereof shall have been given to the
Borrower by the Agent or any Lender; or 
 (d) Any Group Member shall fail to pay principal of at least
CAN$50,000,000 on any Debt that is outstanding (but excluding Debt outstanding hereunder) when the same becomes due and payable (whether by scheduled maturity, required prepayment, acceleration, demand or otherwise), and such failure shall continue
after the applicable grace period, if any, specified in the agreement or instrument relating to such Debt; or any other event shall occur or condition shall exist under any agreement or instrument relating to any Debt that is outstanding in a
principal amount of at least CAN$50,000,000 and shall continue after the applicable grace period, if any, specified in such agreement or instrument, if the effect of such event or condition is to accelerate the maturity of such Debt; or any such
Debt shall be declared to be due and payable, or required to be prepaid or redeemed, purchased or defeased, or an offer to prepay, redeem, purchase or defease such Debt shall be required to be made and is accepted in an amount of at least
CAN$50,000,000 (in each case other than (i) a scheduled prepayment, redemption or purchase, or (ii) a mandatory prepayment, redemption or purchase, or a required offer to prepay, redeem or purchase, that results from the voluntary sale or
transfer of property or assets), in each case prior to the stated maturity thereof; or 
 (e) Any Group Member
shall generally not pay its debts as such debts become due, or shall admit in writing its inability to pay its debts generally, or shall make a general assignment for the benefit of creditors; or any proceeding shall be instituted by or against any
Group Member seeking to adjudicate it a bankrupt or insolvent, or seeking liquidation, winding up, reorganization, arrangement, adjustment, protection, relief, or composition of it or its debts under any law relating to bankruptcy, insolvency or
reorganization or relief of debtors, or seeking the entry of an order for relief or the appointment of a receiver, trustee, receiver-manager, custodian or other similar official for it or for any substantial part of its property and, in the case of
any such proceeding instituted against it (but not instituted by it), either such proceeding shall remain undismissed or unstayed for a period of 60 days, or any of the actions sought in such proceeding (including the entry of an order for relief
against, or the appointment of a receiver, trustee, receiver-manager, custodian or other similar official for, it or for any substantial part of its property) shall occur; or any Group Member shall take any corporate action to authorize any of the
actions set forth above in this subsection (e); or 
 (f) A judgment or order for the payment of money in
excess of CAN$50,000,000 (net of any portion of such judgment to be paid by a third-party insurer as to which coverage has not been disputed) shall be rendered against any Group Member and either (i) enforcement proceedings shall have been
commenced by any creditor upon such judgment or order or (ii) there shall be any period of 10 consecutive days during which a stay of enforcement of such judgment or order, by reason of a pending appeal or otherwise, shall not be in effect; or

 (g) (i) (x) the Parent shall cease to own beneficially, either directly or indirectly, more than 50% of
the Voting Stock of the Borrower; or (y) the Parent and/or any Subsidiary of the Parent shall cease to have the ability to elect or appoint a majority of the board of directors of the Borrower; or (ii) except as a result of a Permitted
Disposition, the Borrower shall cease for any reason to own, directly or indirectly, 100% of the Voting Stock of each other Loan Party; or 

  
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 (h) The indictment or institution of any legal process or proceeding
against, the Borrower or any Subsidiary thereof, under any federal, provincial, state, municipal, and other criminal statute, rule, regulation, order, or other requirement having the force of law for an indictable offense; or 

(i) Any of the Loan Documents shall cease, for any reason, to be in full force and effect, or any Loan Party shall so
state in writing, or any Lien created by any of the Security Documents shall cease to be enforceable and of the same effect and priority purported to be created thereby, including as a result of the failure to comply with Section 5.4 of the
Guarantee and Collateral Agreement; or 
 (j) The guarantee contained in Section 2 of the Guarantee and
Collateral Agreement shall cease, for any reason, to be in full force and effect or any Loan Party shall so state in writing; or 
 (k) any event or condition shall occur with respect to a Canadian Pension Plan which results in a Loan Party having a payment obligation under (i) such Canadian Pension Plan, or (ii) the Pension
Benefits Act (Ontario) or any other similar law, in either case in an amount that is in excess of the payment obligations arising under such Canadian Pension Plan in the ordinary course by more than CAN$ 25,000,000, which payment obligation is not
met within the period required by the terms of such Canadian Pension Plan and applicable law; or 
 (l) Any
Loan Party or any Subsidiary thereof fails to observe or perform any agreement or obligation relating to any Material Contract or contained in any instrument or agreement evidencing, securing or relating thereto, or any other event occurs, the
effect of which default or other event is the termination of, or to permit the counterparty to such Material Contract to terminate, such Material Contract; 
 then, and in any such event, the Agent may, or, at the request of the Required Lenders shall, take any or all of the following actions upon notice to the Borrower: (i) declare the Commitment of each
Lender to be terminated, whereupon the same shall forthwith terminate; and (ii) declare the Advances, all interest thereon and all other amounts payable under this Agreement and the other Loan Documents (including all amounts of the L/C
Obligations, whether or not the beneficiaries of the then outstanding Letters of Credit shall have presented the documents required thereunder) to be forthwith due and payable, whereupon the Advances, all such interest and all such amounts shall
become and be forthwith due and payable, without presentment, demand, protest or further notice of any kind, all of which are hereby expressly waived by the Borrower; provided, however, that in the event of an actual or deemed entry of
an order for relief with respect to the Borrower under the BIA, the CCAA or the Winding-up and Restructuring Act (Canada), (A) the Commitment of each Lender shall automatically be terminated and (B) the Advances, all such interest and all
such amounts shall automatically become and be due and payable, without presentment, demand, protest or any notice of any kind, all of which are hereby expressly waived by the Borrower. With respect to all Letters of Credit with respect to which
presentment for honor shall not have occurred at the time of an acceleration pursuant to this paragraph or for which the outstanding amount of any drawing under any Letters of Credit (including any taxes, fees, charges and other costs and expenses
incurred by the L/C Issuing Bank in connection therewith) have not then been fully reimbursed or discharged, the Borrower shall at such time deposit in a cash collateral account opened by the Agent, an amount equal to 105% of the aggregate then
undrawn and unexpired amount of such Letters of Credit and all other Reimbursement Obligations. Amounts held in such cash collateral account shall be applied by the Agent to the payment of drafts drawn under such Letters of Credit and the other
Reimbursement Obligations, and the unused portion thereof after all such Letters of Credit shall have expired or been fully drawn upon and all Reimbursement Obligations fully reimbursed or discharged, if any, shall be applied to repay other
obligations of the Borrower hereunder and under the other Loan Documents. After all such Letters of Credit shall have expired or been fully drawn upon, all Reimbursement Obligations shall have been satisfied and all other obligations of the Borrower
hereunder and under the other Loan Documents shall have been paid in full, the balance, if any, in such cash collateral account shall be returned to the Borrower (or such other Person as may be lawfully entitled thereto). 

  
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 ARTICLE VIII 
 THE AGENT 
 SECTION 8.01. Appointment. 

Each Lender hereby irrevocably designates and appoints Wells Fargo Capital Finance Corporation Canada as Agent under this Agreement and
the other Loan Documents, and each such Lender irrevocably authorizes the Agent, in such capacity, to take such action on its behalf under the provisions of this Agreement and the other Loan Documents and to exercise such powers and perform such
duties as are expressly delegated to the Agent by the terms of this Agreement and the other Loan Documents, together with such other powers as are reasonably incidental thereto. For clarity, and notwithstanding anything to the contrary contained in
this Agreement and the other Loan Documents, no consent of the Lenders shall be required to amend this Agreement or the Loan Documents to (i) cause additional assets to become Collateral or to add additional Subsidiaries as guarantors of the
Obligations, (ii) implement the provisions of Section 8.12, or (iii) implement a Commitment Increase in accordance with the terms of Section 2.18, and the Agent and the Loan Parties shall be entitled to execute any and all
amendments necessary or desirable to accomplish any of the foregoing and such amendments shall be binding on the other parties hereto Notwithstanding any provision to the contrary elsewhere in this Agreement, the Agent shall have no duties or
responsibilities, except those expressly set forth in this Agreement and the other Loan Documents to which it is a party, or any fiduciary relationship with any Lender, and no implied covenants, functions, responsibilities, duties, obligations or
liabilities shall be read into this Agreement or any other Loan Document or otherwise exist against the Agent. 
 SECTION 8.02.
Delegation of Duties. 
 The Agent may execute any of its duties under this Agreement and the other Loan Documents by or
through agents or attorneys-in-fact and shall be entitled to advice of counsel concerning all matters pertaining to such duties. The Agent shall not be responsible for the negligence or misconduct of any agents or attorneys-in-fact selected by it
with reasonable care. The Agent reserves the right to execute any of its duties under this Agreement or any other Loan Document by or through agents, including a separate Canadian agent, to hold, realize or enforce any Loan Document. 

SECTION 8.03. Exculpatory Provisions. 
 No Agent (for purposes of this Section 8.03, “Agent” and “Agents” shall mean the collective reference to the Agent, each Co-Collateral Agent and any other Lender
designated as an “Agent” for purposes of this Agreement, including the Arrangers, the Co-Syndication Agents and the Documentation Agent) nor any of their respective officers, directors, employees, agents, attorneys-in-fact or affiliates
shall be (i) liable for any action lawfully taken or omitted to be taken by it or such Person under or in connection with this Agreement or any other Loan Document (except to the extent that any of the foregoing are found by a final and
nonappealable decision of a court of competent jurisdiction to have resulted from its or such Person’s own gross negligence or willful misconduct) or (ii) responsible in any manner to any of the Lenders for any recitals, statements,
representations or warranties made by any Loan Party or any officer thereof contained in this Agreement or any other Loan Document or in any certificate, report, statement or other document referred to or provided for in, or received by the Agents
under or in connection with, this Agreement or any other Loan Document or for the value, validity, effectiveness, genuineness, enforceability or sufficiency of this Agreement or any other Loan Document or for any failure of any Loan Party that is a
party thereto to perform its obligations hereunder or thereunder. The Agents shall not be under any obligation to any Lender to ascertain or to inquire as to the observance or performance of any of the agreements contained in, or conditions of, this
Agreement or any other Loan Document, or to inspect the properties, books or records of any Loan Party. 
 SECTION 8.04.
Reliance by Agent. 
 The Agent shall be entitled to rely, and shall be fully protected in relying, upon any instrument,
writing, resolution, notice, consent, certificate, affidavit, letter, telecopy, telex or teletype message, statement, order or other document or conversation believed by it to be genuine and correct and to have been signed, sent or made by

  
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the proper Person or Persons and upon advice and statements of legal counsel (including counsel to the Borrower), independent accountants and other experts selected by the Agent. The Agent may
deem and treat the payee of any Note as the owner thereof for all purposes unless a written notice of assignment, negotiation or transfer thereof shall have been filed with the Agent. The Agent shall be fully justified in failing or refusing to take
any action under this Agreement or any other Loan Document unless it shall first receive such advice or concurrence of the Required Lenders (or, if so specified by this Agreement, the Supermajority Lenders or all Lenders) as it deems appropriate or
it shall first be indemnified to its satisfaction by the Lenders against any and all liability and expense that may be incurred by it by reason of taking or continuing to take any such action. The Agent shall in all cases be fully protected in
acting, or in refraining from acting, under this Agreement and the other Loan Documents in accordance with a request of the Required Lenders (or, if so specified by this Agreement, the Supermajority Lenders or all Lenders), and such request and any
action taken or failure to act pursuant thereto shall be binding upon all the Lenders and all future holders of the Advances. 

SECTION 8.05. Notice of Default. 
 The Agent shall not be deemed to have knowledge or notice of the occurrence of any Default or Event of Default unless the Agent has received notice from a Lender or the Borrower referring to this
Agreement, describing such Default or Event of Default and stating that such notice is a “notice of default”. In the event that the Agent receives such a notice, the Agent shall give notice thereof to the Lenders. The Agent shall take such
action with respect to such Default or Event of Default as shall be reasonably directed by the Required Lenders (or, if so specified by this Agreement, the Supermajority Lenders or all Lenders); provided that unless and until the Agent shall
have received such directions, the Agent may (but shall not be obligated to) take such action, or refrain from taking such action, with respect to such Default or Event of Default as it shall deem advisable in the best interests of the Lenders.

 SECTION 8.06. Non-Reliance on Agents and Other Lenders. 

Each Lender expressly acknowledges that neither the Agent nor any of its officers, directors, employees, agents, attorneys-in-fact or
affiliates have made any representations or warranties to it and that no act by the Agent hereafter taken, including any review of the affairs of a Loan Party or any affiliate of a Loan Party, shall be deemed to constitute any representation or
warranty by the Agent to any Lender. Each Lender represents to the Agent that it has, independently and without reliance upon the Agent or any other Lender, and based on such documents and information as it has deemed appropriate, made its own
appraisal of and investigation into the business, operations, property, financial and other condition and creditworthiness of the Loan Parties and their affiliates and made its own decision to make its Advances hereunder and enter into this
Agreement. Each Lender also represents that it will, independently and without reliance upon the Agent or any other Lender, and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit
analysis, appraisals and decisions in taking or not taking action under this Agreement and the other Loan Documents, and to make such investigation as it deems necessary to inform itself as to the business, operations, property, financial and other
condition and creditworthiness of the Loan Parties and their affiliates. Except for notices, reports and other documents expressly required to be furnished to the Lenders by the Agent hereunder, the Agent shall not have any duty or responsibility to
provide any Lender with any credit or other information concerning the business, operations, property, condition (financial or otherwise), prospects or creditworthiness of any Loan Party or any affiliate of a Loan Party that may come into the
possession of the Agent or any of its officers, directors, employees, agents, attorneys-in-fact or affiliates. 
 SECTION 8.07.
Reports and Financial Statements. 
 By signing this Agreement, each Lender: 

(a) agrees to furnish the Agent after the occurrence and during the continuance of a Cash Dominion Event (and thereafter
at such frequency as the Agent may reasonably request) with a summary of all Bank Products and Cash Management Services provided by, and amounts due or to become due on account thereof to, such Lender. In connection with any distributions to be made
hereunder, the Agent shall be entitled to assume that no amounts are due to any Lender on account of any such Bank Products or Cash Management Services unless the Agent has received written notice thereof from such Lender; 

  
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 (b) is deemed to have requested that the Agent furnish such Lender, promptly
after they become available, copies of all financial statements and reports required to be delivered by the Loan Parties hereunder and all commercial finance examinations and appraisals of the Collateral received by the Agent (collectively, the
“Reports”) (which the Agent agrees to so deliver); 
 (c) expressly agrees and acknowledges
that the Agent makes no representation or warranty as to the accuracy of the Reports, and shall not be liable for any information contained in any Report; 
 (d) expressly agrees and acknowledges that the Reports are not comprehensive audits or examinations, that the Agent or any other party performing any audit or examination will inspect only specific
information regarding the Loan Parties and will rely significantly upon the Loan Parties’ books and records, as well as on representations of the Loan Parties’ personnel; 

(e) agrees to keep all Reports confidential in accordance with the provisions of this Agreement; and 

(f) without limiting the generality of any other indemnification provision contained in this Agreement, agrees:
(i) to hold the Agent and any such other Lender preparing a Report harmless from any action the indemnifying Lender may take or conclusion the indemnifying Lender may reach or draw from any Report in connection with any credit extensions that
the indemnifying Lender has made or may make to the Borrower, or the indemnifying Lender’s participation in any Letter of Credit or Swingline Advance, or the indemnifying Lender’s purchase of, a Loan or Loans; and (ii) to pay and
protect, and indemnify, defend, and hold the Agent and any such other Lender preparing a Report harmless from and against, the claims, actions, proceedings, damages, costs, expenses, and other amounts (including reasonable attorney costs) incurred
by the Agent and any such other Lender preparing a Report as the direct or indirect result of any third parties who might obtain all or part of any Report through the indemnifying Lender. 

SECTION 8.08. Indemnification. 
 The Lenders agree to indemnify the Agent in its capacity as such (to the extent not reimbursed by the Borrower and without limiting the obligation of the Borrower to do so), ratably according to their
respective Commitment Percentages in effect on the date on which indemnification is sought under this Section (or, if indemnification is sought after the date upon which the Commitments of any Lender shall have terminated and the Advances shall have
been paid in full, ratably in accordance with such Commitment Percentages immediately prior to such date), from and against any and all liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements
of any kind whatsoever that may at any time (whether before or after the payment of the Advances) be imposed on, incurred by or asserted against such Agent in any way relating to or arising out of, the Commitments, this Agreement, any of the other
Loan Documents or any documents contemplated by or referred to herein or therein or the transactions contemplated hereby or thereby or any action taken or omitted by such Agent under or in connection with any of the foregoing; provided that
no Lender shall be liable for the payment of any portion of such liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements that are found by a final and nonappealable decision of a court of
competent jurisdiction to have resulted from the Agent’s gross negligence or willful misconduct. The agreements in this Section shall survive the payment of the Advances and all other amounts payable hereunder. 

SECTION 8.09. Agent in Its Individual Capacity. 
 Each Agent and its affiliates may make loans to, accept deposits from and generally engage in any kind of business with any Loan Party as though such Agent were not an Agent. With respect to its Advances
made or renewed by it and with respect to any Letter of Credit issued or participated in by it, each Agent shall have the same rights and powers under this Agreement and the other Loan Documents as any Lender and may exercise the same as though it
were not an Agent, and the terms “Lender” and “Lenders” shall include each Agent in its individual capacity. 

  
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 SECTION 8.10. Successor Agent. 

The Agent may resign as Agent upon 30 days’ notice to the Lenders and the Borrower. If the Agent shall resign as Agent under this
Agreement and the other Loan Documents, then the Required Lenders shall appoint from among the Lenders a successor agent for the Lenders, which successor agent shall (unless an Event of Default shall have occurred and be continuing) be subject to
approval by the Borrower (which approval shall not be unreasonably withheld or delayed), whereupon such successor agent shall succeed to the rights, powers and duties of the Agent, and the term “Agent” shall mean such successor agent
effective upon such appointment and approval, and the former Agent’s rights, powers and duties as Agent shall be terminated, without any other or further act or deed on the part of such former Agent or any of the parties to this Agreement or
any holders of the Advances. If no successor agent has accepted appointment as Agent by the date that is 30 days following a retiring Agent’s notice of resignation, the retiring Agent’s resignation shall nevertheless thereupon become
effective, and the Lenders shall assume and perform all of the duties of the hereunder, as until such time, if any, as the Required Lenders appoint a successor agent as provided for above. After any retiring Agent’s resignation as Agent, the
provisions of this Article VIII shall inure to its benefit as to any actions taken or omitted to be taken by it while it was Agent under this Agreement and the other Loan Documents. 

SECTION 8.11. Documentation Agent and Syndication Agent. 
 The Documentation Agent and the Syndication Agent nor any other Lender designated as an “Agent” for purposes of this Agreement (other than WFCFC in its capacity as Agent) shall have any duties
or responsibilities hereunder in its capacity as such. 
 SECTION 8.12. Defaulting Lenders. 

(a) If a Lender becomes a Defaulting Lender, then, in addition to the rights and remedies that may be available to the other Credit
Parties, the Loan Parties or any other party at law or in equity, and not at limitation thereof, (i) such Defaulting Lender’s right to participate in the administration of, or decision-making rights related to, the Obligations in respect
of Required Lender and Supermajority Lender votes, this Agreement or the other Loan Documents shall be suspended during the pendency of such failure or refusal, (ii) a Defaulting Lender shall be deemed to have permanently (unless reinstated as
set forth below) assigned, without further consideration any and all payments due to it from the Loan Parties, whether on account of outstanding Advances, interest, fees or otherwise, to the remaining non-Defaulting Lenders for application to, and
reduction of, their proportionate shares of all outstanding Obligations until, as a result of application of such assigned payments the Lenders’ respective Commitment Percentages of all outstanding Obligations shall have returned to those in
effect immediately prior to such delinquency and without giving effect to the nonpayment causing such delinquency, or (iii) at the option of the Agent, any amount payable to such Defaulting Lender hereunder (whether on account of principal,
interest, fees or otherwise) shall, in lieu of being distributed to such Defaulting Lender, be retained by the Agent as cash collateral for, and applied by the Agent to, defaulted and future funding obligations of the Defaulting Lender in respect of
any Advance or existing or future participating interest in any Swingline Advance or Letter of Credit. The Defaulting Lender’s decision-making and participation rights and rights to payments as set forth in clauses (i) and
(ii) hereinabove shall be restored only upon (a) the payment by the Defaulting Lender of its Commitment Percentage of any Obligations, any participation obligation, or expenses as to which it is delinquent, together with interest thereon
at a rate equal to the BA Rate for a 30 day Interest Period or the Federal Funds Rate, as applicable, from time to time in effect from the date when originally due until the date upon which any such amounts are actually paid and (b) receipt by
the Agent and the Borrower of a certification by such Defaulting Lender of its ability and intent to comply with the provisions of this Agreement going forward. 
 (b) The non-Defaulting Lenders shall also have the right, but not the obligation, in their respective, sole and absolute discretion, to cause the termination and assignment, without any further action by
the Defaulting Lender for no cash consideration (pro rata, based on the respective Commitments of those Lenders electing to exercise such right), of the Defaulting Lender’s Commitment to fund future Advances. Upon any such
purchase of the Commitment of any Defaulting Lender, the Defaulting Lender’s share in future Extensions of Credit and its rights under the Loan Documents with respect thereto (but not with respect to then outstanding Obligations owed to the
Defaulting Lender) shall terminate on the date of purchase, and the Defaulting Lender shall promptly execute all documents reasonably requested to surrender and transfer such interest, including, if so requested, an Assignment and Acceptance.

  
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 (c) In addition to the rights of the non-Defaulting Lenders set forth in
Section 8.12(b) above, the Borrower shall have the right, at any time, upon at least five Business Days’ notice to a Defaulting Lender or a Deteriorating Lender (with a copy to the Agent), to terminate in whole such Lender’s
Commitments and to replace such Defaulting Lender in accordance with the provisions of Section 9.16 hereof. 
 (d) Each
Defaulting Lender shall indemnify the Agent and each non-Defaulting Lender from and against any and all loss, damage or expenses, including but not limited to reasonable attorneys’ fees and funds advanced by the Agent or by any non-Defaulting
Lender, on account of a Defaulting Lender’s failure to timely fund its Commitment Percentage of an Advance or to otherwise perform its obligations under the Loan Documents. 

SECTION 8.13. Control Co-Collateral Agent as Fondé de Pouvoir. 

Without limiting the power of the Agent hereunder or under any other Loan Document, each of the Credit Parties hereby acknowledges that
for the purposes of holding any hypothec granted or to be granted by the Borrower or any Subsidiary Guarantor under any deed of hypothec (“Deed of Hypothec”) pursuant to the laws of the Province of Quebec to secure payment of any
obligation under this Agreement or any other Loan Document entered into by the Borrower or any Subsidiary Guarantor, the Control Co-Collateral Agent is hereby appointed to act as the person holding the power of attorney (fondé de
pouvoir) pursuant to Article 2692 of the Civil Code of Quebec to act on behalf of each of the Credit Parties, debentureholders or bondholders, and the Borrower, each Subsidiary Guarantor and each Credit Party hereby confirms and
agrees to such appointment. Each of the Credit Parties hereby further acknowledges that the Control Co-Collateral Agent is hereby appointed as agent, mandatary, custodian and depositary for and on behalf of each of them (i) to hold and to be
the sole registered holder of any debenture or bond issued under any Deed of Hypothec executed by or on behalf of the Borrower or any Subsidiary Guarantor as aforesaid, the whole notwithstanding Section 32 of the Act respecting the special
powers of legal persons (Quebec) or any other applicable law, and (ii) to enter into, to take and to hold on their behalf, and for their benefit, any bond pledge agreement (“Pledge”) to be executed by the Borrower or any
Subsidiary Guarantor under the laws of the Province of Quebec and creating a pledge on any such debentures or bonds as security for the payment and performance of the Obligations. The Borrower and each Subsidiary Guarantor hereby acknowledges that
any such debentures or bonds constitute titles of indebtedness, as such term is understood under Article 2692 of the Civil Code of Quebec. Each Person who is or becomes a Credit Party and each assignee holder under this Agreement or any
other Loan Document, debenture or bond issued by the Borrower or any Subsidiary Guarantor shall be deemed to ratify the aforesaid appointments of the Control Co-Collateral Agent, by its execution of an Assignment and Assumption. The Control
Co-Collateral Agent agrees to act in such capacities. The Control Co-Collateral Agent, in such aforesaid capacities shall (x) have the sole and exclusive right and authority to exercise, except as may be otherwise specifically restricted by the
terms hereof, all rights and remedies given to the Control Co-Collateral Agent with respect to the Collateral under the Deed of Hypothec and Pledge, applicable law or otherwise, and (y) benefit from and be subject to all provisions hereof with
respect to the Control Co-Collateral Agent, mutatis mutandis, including, without limitation, all such provisions with respect to the liability or responsibility to and indemnification by the Credit Parties. The execution prior to the date
hereof by the Control Co-Collateral Agent of any Deed of Hypothec, Pledge or other security documents made pursuant to the applicable law of the Province of Quebec is hereby ratified and confirmed. Without prejudice to section 9.09 hereof, the
provisions of this paragraph shall be also governed by the laws of the Province of Quebec. 
 ARTICLE IX 

MISCELLANEOUS 

SECTION 9.01. Amendments, Etc. 
 No amendment or waiver of any provision of this Agreement or any other Loan Document, nor consent to any departure by the Borrower or any Loan Party therefrom, shall in any event be effective unless the
same shall be in writing and signed by the Required Lenders, and then such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given; provided, however, that no amendment, waiver or
consent shall (a) unless in writing and signed by each Lender directly affected thereby, do any of the following: (i) increase the amount or extend the expiration date of any Lender’s Commitment, (ii) reduce the principal of, or
interest on, the Advances or any fees or other amounts payable hereunder or (iii) postpone any date fixed for any 

  
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payment of principal of, or interest on, the Advances or any fees or other amounts payable hereunder; (b) unless in writing and signed by all of the Lenders, do any of the following:
(i) change the percentage of the Commitments or of the aggregate unpaid principal amount of the Advances, or the number of Lenders, that shall be required for the Lenders or any of them to take any action hereunder, (ii) other than in
accordance with Section 9.13, release all or substantially all of the Collateral or release all or substantially all of the guarantors from their obligations under the Guarantee and Collateral Agreement, (iii) amend this Section 9.01,
(iv) modify the definition of Permitted Overadvance if the amount of the Overadvance permitted thereunder would be increased or (v) other than in accordance with Section 6.01(d), release the Borrower from all of its obligations
hereunder; (c) unless in writing and signed by the Supermajority Lenders, increase any advance rate percentage set forth in the definition of “Borrowing Base”; provided that the foregoing shall not limit the discretion of the
Agent to change, establish or eliminate any reserves, (d) unless in writing and signed by the Agent and the Co-Collateral Agents (in addition to the Lenders required above to take such action), as applicable, amend, modify or waive any
provision of Article VIII or affect the rights or duties of the Agent or the Co-Collateral Agents under this Agreement or any other Loan Document; (e) unless in writing and signed by the Swingline Lender (in addition to the Lenders required
above to take such action), amend, modify or waive any provision of Section 2.03 or 2.04; or (f) unless in writing and signed by the L/C Issuing Bank (in addition to the Lenders required above to take such action), amend, modify or waive
any provision of Article III. 
 SECTION 9.02. Notices, Etc. 

(a) All notices and other communications provided for hereunder shall be in writing (including telecopier
communication) and mailed, telecopied or delivered, (i) if to the Borrower or any Subsidiary Guarantor, at its address at 290 Yonge St., Suite 700, Toronto, Ontario, M5B 2C3, Attention: General Counsel, with a copy to Wachtell, Lipton,
Rosen & Katz, 51 West 52nd Street, New York, New York 10019, Attention: Joshua A. Feltman; (ii) if to any Lender, at its address set forth in its completed administrative questionnaire delivered to the Agent; (iii) if to WFCFC, in
its capacity as Agent, the Swingline Lender or L/C Issuing Bank, at its address at One Boston Place, 18th Floor, Boston, Massachusetts 02108, Attention: William Chan, with a copy to Riemer & Braunstein LLP, Three Center Plaza, Boston, Massachusetts 02108, Attention: David S. Berman, Esq.; and, as to
each other party, at such other address as shall be designated by such party in a written notice to the Borrower and the Agent; provided that notices required to be delivered pursuant to Section 6.01(j)(i), (ii), (iii), and
(v) shall be delivered to the Agent and the Lenders as specified in Section 9.02(b). All such notices and communications shall, when mailed, telecopied, telegraphed or emailed, be effective when deposited in the mails, telecopied,
delivered to the telegraph company or confirmed by email, respectively, except that notices and communications to the Agent pursuant to Article II, III or VIII shall not be effective until received by the Agent. Delivery by telecopier or by
electronic transmission of a pdf formatted copy of an executed counterpart of any amendment or waiver of any provision of this Agreement or any Loan Document or of any exhibit hereto or thereto to be executed and delivered hereunder shall be
effective as delivery of a manually executed counterpart thereof. 
 (b) The Borrower agrees that materials required to be
delivered pursuant to Sections 6.01(j)(i), (ii), (iii) and (v), shall be deemed delivered to the Agent on the date on which the Borrower causes such reports, or reports containing such financial statements, to be posted on the Internet at such
website identified by the Borrower in a written notice to the Agent and the Lenders and that is accessible by the Lenders without charge or if not so posted, may be delivered to the Agent in an electronic medium in a format acceptable to the Agent
by email. The Borrower agrees that the Agent may make such materials, as well as any other written information, documents, instruments and other material relating to The Borrower, any of its Subsidiaries or any other materials or matters relating to
this Agreement, the Loan Documents or any of the transactions contemplated hereby (collectively, the “Communications”) available to the Lenders by posting such notices on Intralinks or a substantially similar electronic system (the
“Platform”). The Borrower acknowledges that (i) the distribution of material through an electronic medium is not necessarily secure and that there are confidentiality and other risks associated with such distribution,
(ii) the Platform is provided “as is” and “as available” and (iii) neither the Agent nor any of its Affiliates warrants the accuracy, adequacy or completeness of the Communications or the Platform and each expressly
disclaims liability for errors or omissions in the Communications or the Platform. No warranty of any kind, express, implied or statutory, including any warranty of merchantability, fitness for a particular purpose, non-infringement of third party
rights or freedom from viruses or other code defects, is made by the Agent or any of its Affiliates in connection with the Platform. 

  
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 (c) Each Lender agrees that notice to it (as provided in the next sentence) (a
“Notice”) specifying that any Communications have been posted to the Platform shall constitute effective delivery of such information, documents or other materials to such Lender for purposes of this Agreement; provided that
if requested by any Lender the Agent shall deliver a copy of the Communications to such Lender by email or telecopier. Each Lender agrees (i) to notify the Agent in writing of such Lender’s e-mail address to which a Notice may be sent by
electronic transmission (including by electronic communication) on or before the date such Lender becomes a party to this Agreement (and from time to time thereafter to ensure that the Agent has on record an effective e-mail address for such Lender)
and (ii) that any Notice may be sent to such e-mail address. 
 SECTION 9.03. No Waiver; Remedies. 

No failure on the part of any Lender or the Agent to exercise, and no delay in exercising, any right hereunder or under any other Loan
Document shall operate as a waiver thereof; nor shall any single or partial exercise of any such right preclude any other or further exercise thereof or the exercise of any other right. The remedies herein provided are cumulative and not exclusive
of any remedies provided by law. 
 SECTION 9.04. Costs and Expenses. 

(a) The Borrower agrees to pay promptly all reasonable costs and expenses of the Agent in connection with the preparation, execution,
delivery, distribution (including via the internet or through a service such as Intralinks), administration, modification and amendment of this Agreement, the other Loan Documents and the other documents to be delivered hereunder, including,
(A) all due diligence, syndication (including printing, distribution and bank meetings), transportation, computer, duplication, appraisal, consultant, and audit expenses, (B) subject to Section 6.01(k), all expenses incurred in
connection with inspections, verifications, examinations and appraisals relating to the Borrowing Base and the Collateral, and (C) the reasonable fees and expenses of counsel for the Agent with respect thereto and with respect to advising the
Agent as to its rights and responsibilities under this Agreement and the other Loan Documents and any such fees, or expenses, which the Borrower has agreed to pay pursuant to any Fee Letter. The Borrower further agrees to pay on demand all costs and
expenses of the Agent and the Lenders, if any (including reasonable counsel fees and expenses), in connection with the enforcement of, or protection of their rights under, (whether through negotiations, legal proceedings or otherwise) of this
Agreement, the other Loan Documents and the other documents to be delivered hereunder, including reasonable fees and expenses of one U.S. counsel and one Canadian counsel (including local counsel, as required) for the Agent, and one U.S. counsel and
one Canadian counsel (including local counsel, as required) for the Lenders in connection with the enforcement of or protection rights under this Section 9.04(a). 
 (b) The Borrower agrees to indemnify and hold harmless the Agent, each Co-Collateral Agent and each Lender and each of their Affiliates and their officers, directors, employees, agents and advisors (each,
an “Indemnified Party”) from and against any and all claims, damages, losses, liabilities and expenses (including reasonable fees and expenses of counsel) incurred by or asserted or awarded against any Indemnified Party, in each
case arising out of or in connection with or by reason of (including in connection with any investigation, litigation or proceeding or preparation of a defense in connection therewith) (i) this Agreement, the other Loan Documents, any of the
transactions contemplated herein or therein or the actual or proposed use of the Letters of Credit or the proceeds of the Advances, and (ii) the actual or alleged presence of Hazardous Materials on any property of the Borrower or any of its
Subsidiaries or any Environmental Action relating in any way to the Borrower or any of its Subsidiaries, except to the extent such claim, damage, loss, liability or expense is found in a final, non-appealable judgment by a court of competent
jurisdiction to have resulted from such Indemnified Party’s gross negligence or willful misconduct. In the case of an investigation, litigation or other proceeding to which the indemnity in this Section 9.04(b) applies, such indemnity
shall be effective whether or not such investigation, litigation or proceeding is brought by the Borrower, its directors, equityholders or creditors or an Indemnified Party or any other Person, whether or not any Indemnified Party is otherwise a
party thereto and whether or not the transactions contemplated hereby are consummated. The Borrower also agrees not to assert any claim for special, indirect, consequential or 

  
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punitive damages against the Agent, any Co-Collateral Agent, any Lender, any of their Affiliates, or any of their respective directors, officers, employees, attorneys and agents, on any theory of
liability, arising out of or otherwise relating to this Agreement, the other Loan Documents, any of the transactions contemplated herein or the actual or proposed use of the Letters of Credit or the proceeds of the Advances. 

(c) Except for a repayment effected in accordance with clause (d) below, if any payment of principal of, or Conversion of, any BA
Rate Advance or LIBOR Rate Advance is made by the Borrower to or for the account of a Lender other than on the last day of the Interest Period for such Advance, as a result of a payment or Conversion pursuant to Section 2.09(d) or (e), 2.11 or
2.13, acceleration of the maturity of the Advances pursuant to Section 7.01 or for any other reason, or by an Eligible Assignee to a Lender other than on the last day of the Interest Period for such Advance upon an assignment of rights and
obligations under this Agreement pursuant to Section 9.07 as a result of a demand by the Borrower pursuant to Section 9.07(a), the Borrower shall, promptly after notice by such Lender setting forth in reasonable detail the calculations
used to quantify such amount (with a copy of such notice to the Agent), pay to the Agent for the account of such Lender any amounts required to compensate such Lender for any additional losses, costs or expenses that it may reasonably incur as a
result of such payment or Conversion, including any loss (including loss of anticipated profits), cost or expense incurred by reason of the liquidation or reemployment of deposits or other funds acquired by any Lender to fund or maintain such
Advance. 
 (d) The Borrower may prepay the amount of any BA Rate Advance by depositing with the Agent an amount equal to the
aggregate of (a) the principal amount of such BA Rate Advance and (b) the amount of interest accruing during the Interest Period applicable to such BA Rate Advance in accordance with Section 2.08 (a) (ii). Such amount (the
“Invested Amount”) shall be invested by the Agent in an interest bearing account for the balance of the applicable Interest Period. The Invested Amount shall be applied by the Agent to payment of the principal amount of such BA Rate
Advance together with the interest payable thereon on the last day of the Interest Period applicable to such BA Rate Advance. Interest earned on the Invested Amount shall be paid by the Agent to the Borrower promptly after the payment in full
of such BA Rate Advance and the interest payable thereon. 
 (e) Without prejudice to the survival of any other agreement of the
Borrower hereunder, the agreements and obligations of the Borrower contained in Sections 2.12, 2.15 and 9.04 shall survive the payment in full of principal, interest and all other amounts payable hereunder and under the other Loan Documents.

 SECTION 9.05. Right of Set-off. 
 Upon (i) the occurrence and during the continuance of any Event of Default and (ii) the making of the request or the granting of the consent specified by Section 7.01 to authorize the Agent
to declare the Extensions of Credit due and payable pursuant to the provisions of Section 7.01, each Lender and each of its Affiliates is hereby authorized at any time and from time to time, to the fullest extent permitted by law, to set off
and apply any and all deposits (general or special, time or demand, provisional or final) at any time held and other indebtedness at any time owing by such Lender or such Affiliate to or for the credit or the account of the Borrower against any and
all of the obligations of the Borrower now or hereafter existing under this Agreement, the other Loan Documents and the Extensions of Credit of such Lender, whether or not such Lender shall have made any demand under this Agreement or the other Loan
Documents. Each Lender agrees promptly to notify the Borrower (with a copy to the Agent) after any such set-off and application, provided that the failure to give such notice shall not affect the validity of such set-off and application. The
rights of each Lender and its Affiliate under this Section are in addition to other rights and remedies (including other rights of set-off) that such Lender and its Affiliate may have. 

SECTION 9.06. Binding Effect; Effectiveness. 
 When this Agreement has been executed by the Borrower, the Agent and the Lenders, this Agreement shall thereafter be binding upon and inure to the benefit of the Borrower, the Agent, each Lender and their
respective successors and assigns; provided, that, except with respect to Sections 9.07 and 9.08, this Agreement shall only become effective upon satisfaction of the conditions precedent set forth in Section 4.01 and none of the
provisions of this Agreement, including without limitation provisions in respect of Advances and Letters of Credit to be made by or issued by any Lender, and in respect of any covenant, fee, indemnity, default, and expense reimbursement made by any
Loan Party or for which any Loan Party is liable hereunder, shall become effective, nor shall any representation herein be deemed to be made, until the satisfaction of such conditions. 

  
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 SECTION 9.07. Assignments and Participations . 

(a) Each Lender may, upon notice to the Borrower and the Agent and with the consent, not to be unreasonably withheld, of the Agent, and,
unless an Event of Default has occurred and is continuing, the Borrower, assign to one or more Persons all or a portion of its rights and obligations under this Agreement (including all or a portion of its Commitment, the Advances and other amounts
owing to it and any Note or Notes held by it); provided, however, that (i) each such assignment shall be of a constant, and not a varying, percentage of all rights and obligations under this Agreement, (ii) except in the case
of an assignment to a Person that, immediately prior to such assignment, was a Lender, an Affiliate of a Lender or an Approved Fund or an assignment of all of a Lender’s rights and obligations under this Agreement, the amount of the Commitment
of the assigning Lender being assigned pursuant to each such assignment (determined as of the date of the Assignment and Acceptance with respect to such assignment) shall in no event be less than CAN$10,000,000 (unless an Event of Default has
occurred and is continuing, in which case not less than CAN$5,000,000) or an integral multiple of CAN$1,000,000 in excess thereof unless the Borrower and the Agent otherwise agree, (iii) each such assignment shall be to an Eligible Assignee,
(iv) the parties to each such assignment shall execute and deliver to the Agent, for its acceptance and recording in the Register, an Assignment and Acceptance, and the parties to such assignment (other than the Borrower and the Agent) shall
deliver together therewith any Note subject to such assignment and a processing and recordation fee of CAN$3,500 (except no such fee shall be payable for assignments to a Lender, an Affiliate of a Lender or an Approved Fund), and (v) any Lender
may, without the approval of the Borrower, but with notice to the Borrower, assign all or a portion of its rights and obligations to any of its Affiliates or to another Lender. Upon such execution, delivery, acceptance and recording, from and after
the effective date specified in each Assignment and Acceptance, (x) the assignee thereunder shall be a party hereto and, to the extent that rights and obligations hereunder have been assigned to it pursuant to such Assignment and Acceptance,
have the rights and obligations of a Lender hereunder and (y) the Lender assignor thereunder shall, to the extent that rights and obligations hereunder have been assigned by it pursuant to such Assignment and Acceptance, relinquish its rights
(other than its rights under Section 2.12, 2.15 and 9.04 to the extent any claim thereunder relates to an event arising prior such assignment) and be released from its obligations under this Agreement (and, in the case of an Assignment and
Acceptance covering all or the remaining portion of an assigning Lender’s rights and obligations under this Agreement, such Lender shall cease to be a party hereto). 
 (b) By executing and delivering an Assignment and Acceptance, the Lender assignor thereunder and the assignee thereunder confirm to and agree with each other and the other parties hereto as follows:
(i) other than as provided in such Assignment and Acceptance, such assigning Lender makes no representation or warranty and assumes no responsibility with respect to any statements, warranties or representations made in or in connection with
this Agreement or the other Loan Documents or the execution, legality, validity, enforceability, genuineness, sufficiency or value of this Agreement or the other Loan Documents or any other instrument or document furnished pursuant hereto or
thereto; (ii) such assigning Lender makes no representation or warranty and assumes no responsibility with respect to the financial condition of the Loan Parties or the performance or observance by the Borrower of any of its obligations under
this Agreement or any other instrument or document furnished pursuant hereto; (iii) such assignee confirms that it has received a copy of this Agreement, together with copies of the financial statements referred to in Section 5.01 and such
other documents and information as it has deemed appropriate to make its own credit analysis and decision to enter into such Assignment and Acceptance; (iv) such assignee will, independently and without reliance upon the Agent or any
Co-Collateral Agent, such assigning Lender or any other Lender and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under this Agreement and
the other Loan Documents; (v) such assignee confirms that it is an Eligible Assignee; (vi) such assignee appoints and authorizes the Agent to take such action as agent on its behalf and to exercise such powers and discretion under this
Agreement and the other Loan Documents as are delegated to the Agent by the terms hereof and thereof, together with such powers and discretion as are reasonably incidental thereto; and (vii) such assignee agrees that it will perform in
accordance with their terms all of the obligations that by the terms of this Agreement are required to be performed by it as a Lender. 

  
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 (c) Upon its receipt of an Assignment and Acceptance executed by an assigning Lender and an
assignee representing that it is an Eligible Assignee, together with any Note or Notes subject to such assignment, the Agent shall, if such Assignment and Acceptance has been completed and is in substantially the form of Exhibit B
hereto, (i) accept such Assignment and Acceptance, (ii) record the information contained therein in the Register and (iii) give prompt notice thereof to the Borrower. 

(d) The Agent shall maintain at its address referred to in Section 9.02 a copy of each Assignment and Acceptance delivered to and
accepted by it and a register for the recordation of the names and addresses of the Lenders and the Commitment of, and principal amount of the Advances and L/C Obligations owing to, each Lender from time to time (the “Register”).
The entries in the Register shall be conclusive and binding for all purposes, absent manifest error, and the Borrower, the Agent and the Lenders may treat each Person whose name is recorded in the Register as a Lender hereunder for all purposes of
this Agreement. The Register shall be available for inspection by the Borrower or any Lender at any reasonable time and from time to time upon reasonable prior notice. 
 (e) Each Lender may, without the consent of the Agent or any Loan Party, sell participations to one or more banks or other entities (other than the Borrower or any of its Affiliates) in or to all or a
portion of its rights and obligations under this Agreement (including all or a portion of its Commitment, the Advances owing to it and any Note or Notes held by it); provided, however, that (i) such Lender’s obligations under
this Agreement (including its Commitment to the Borrower and its obligations to the Swingline Lender and the Issuing Lender hereunder) shall remain unchanged, (ii) such Lender shall remain solely responsible to the other parties hereto for the
performance of such obligations, (iii) such Lender shall remain the holder of any such Note for all purposes of this Agreement, (iv) the Borrower, the Agent and the other Lenders shall continue to deal solely and directly with such Lender
in connection with such Lender’s rights and obligations under this Agreement and (v) no participant under any such participation shall have any right to approve any amendment or waiver of any provision of this Agreement or any Loan
Document, or consent to any departure by the Borrower therefrom, except to the extent that such amendment, waiver or consent would require the affirmative vote of the Lender from which it purchased its participation pursuant to Section 9.01(a).

 (f) Any Lender may, in connection with any assignment or participation or proposed assignment or participation pursuant to
this Section 9.07, disclose to the assignee or participant or proposed assignee or participant, any information relating to the Borrower or its Subsidiaries furnished to such Lender by or on behalf of the Borrower; provided that, prior
to any such disclosure, the assignee or participant or proposed assignee or participant shall agree to preserve the confidentiality of any Borrower Information relating to the Borrower or its Subsidiaries received by it from such Lender in
accordance with Section 9.08. 
 (g) Notwithstanding any other provision set forth in this Agreement, any Lender may at any
time create a security interest in all or any portion of its rights under this Agreement (including the Advances owing to it and any Notes held by it), including, without limitation, in favor of any Federal Reserve Bank in accordance with Regulation
A of the Board of Governors of the Federal Reserve System. 
 (h) The Borrower, upon receipt of written notice from the relevant
Lender, agrees to issue Notes to any Lender to facilitate transactions of the type described in paragraph (g) above. 
 (i)
The Borrower shall not have the right to assign its rights hereunder or any interest herein without the prior written consent of each of the Lenders. 
 SECTION 9.08. Confidentiality. 
 Neither the Agent nor any Lender may
disclose to any Person any confidential, proprietary or non-public information of the Borrower furnished to the Agent or the Lenders by the Borrower (such information being referred to collectively herein as the “Borrower
Information”), except that each of the Agent and the Lenders may disclose Borrower Information (i) to its and its Affiliates’ employees, officers, directors, agents and advisors to whom disclosure is required to enable the Agent
or such Lender to perform its obligations under this Agreement and the other Loan Documents or in connection with the administration or monitoring of this Agreement and the other Loan Documents by the Agent or such Lender (it being understood that
the Persons to whom such disclosure is 

  
 75 

 
made will be informed of the confidential nature of such Borrower Information and instructed to keep such Borrower Information confidential on substantially the same terms as provided herein),
(ii) to the extent requested by any regulatory authority, (iii) to the extent required by applicable laws or regulations or by any subpoena or similar legal process, (iv) to any other party to this Agreement and the other Loan
Documents, (v) in connection with the exercise of any remedies hereunder or any suit, action or proceeding relating to this Agreement and the other Loan Documents or the enforcement of rights hereunder or thereunder, (vi) subject to an
agreement containing provisions substantially the same as those of this Section 9.08, to any assignee or participant, or any prospective assignee or participant, (vii) to the extent such Borrower Information (A) is or becomes
generally available to the public on a non-confidential basis other than as a result of a breach of this Section 9.08 by the Agent or such Lender, as the case may be, or (B) is or becomes available to the Agent or such Lender on a
non-confidential basis from a source other than the Borrower or any of its Subsidiaries and (viii) with the consent of the Borrower; provided that the foregoing obligations of the Agent and the Lenders under this Section 9.08 shall survive
only until the second anniversary of (a) in the case of the Agent, the date on which such Agent ceased to be Agent hereunder, (b) in the case of a Lender, the date such Lender ceased to be a Lender hereunder, and (c) the date on which
all Obligations were satisfied in full in accordance with Section 9.13(b). 
 SECTION 9.09. Governing Law.

 This Agreement and the Notes shall be governed by, and construed in accordance with, the laws of the Province of Ontario and
the federal laws of Canada applicable therein without regard to conflicts of laws principles thereof. 
 SECTION 9.10.
Execution in Counterparts. 
 This Agreement may be executed in any number of counterparts and by different parties
hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement. Delivery of an executed counterpart of a signature page to this Agreement
by telecopier or by electronic transmission of a pdf formatted counterpart shall be effective as delivery of a manually executed counterpart of this Agreement. 
 SECTION 9.11. Jurisdiction, Etc. 
 (a) Each of the parties hereto hereby
irrevocably and unconditionally submits, for itself and its property, to the nonexclusive jurisdiction of any court sitting in Toronto, and any appellate court from any thereof, in any action or proceeding arising out of or relating to this
Agreement or the other Loan Documents, or for recognition or enforcement of any judgment, and each of the parties hereto hereby irrevocably and unconditionally agrees that all claims in respect of any such action or proceeding may be heard and
determined in any such court. The Borrower hereby irrevocably consents to the service of process in any action or proceeding in such courts by the mailing thereof by any parties hereto by registered or certified mail, postage prepaid, to the
Borrower at its address specified pursuant to Section 9.02. Each of the parties hereto agrees that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in
any other manner provided by law. Nothing in this Agreement shall affect any right that any party may otherwise have to bring any action or proceeding relating to this Agreement or the other Loan Documents in the courts of any jurisdiction.

 (b) Each of the parties hereto irrevocably and unconditionally waives, to the fullest extent it may legally and effectively
do so, any objection that it may now or hereafter have to the laying of venue of any suit, action or proceeding arising out of or relating to this Agreement or the other Loan Documents in any court in Toronto. Each of the parties hereto hereby
irrevocably waives, to the fullest extent permitted by law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court. 

  
 76 

 SECTION 9.12. WAIVER OF JURY TRIAL. 

EACH OF THE BORROWER, THE AGENT, AND THE LENDERS HEREBY IRREVOCABLY WAIVES ALL RIGHT TO TRIAL BY JURY IN ANY ACTION, PROCEEDING OR
COUNTERCLAIM (WHETHER BASED ON CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE OTHER LOAN DOCUMENTS OR THE ACTIONS OF THE AGENT OR ANY LENDER IN THE NEGOTIATION, ADMINISTRATION, PERFORMANCE OR ENFORCEMENT THEREOF.

 SECTION 9.13. Release of Collateral or Guarantee Obligation. 

(a) Notwithstanding anything to the contrary contained herein or in any other Loan Document, the Agent is hereby irrevocably authorized
by each Lender (without requirement of consent of or notice to any Lender) to take, and hereby agree to take, any action requested by the Borrower having the effect of releasing any Collateral or guarantee obligations (i) to the extent
necessary to permit consummation of any transaction not prohibited by any Loan Document (including, without limitation, any Permitted Disposition) or that has been consented to in accordance with Section 9.01 or (ii) under the
circumstances described in paragraph (b) below. 
 (b) At such time as the Advances, the Reimbursement Obligations and all
other Obligations shall have been paid in full in cash, the Commitments have been terminated and no Letters of Credit shall be outstanding (or any outstanding Letters of Credit shall have been cash collateralized in an amount equal to 105% of the
aggregate then undrawn and unexpired amount of such Letters of Credit and all other Reimbursement Obligations or back-to-back letters of credit from an issuer and on terms acceptable to the L/C Issuing Bank have been provided in respect of such
Letters of Credit), the Collateral shall be released from the Liens created by the Security Documents, and the Security Documents and all obligations (other than those expressly stated to survive such termination) of the Agent and each Loan Party
under the Security Documents shall terminate, all without delivery of any instrument or performance of any act by any Person. 

SECTION 9.14. Proceeds of Crime Act. 
 Each Lender that is subject to the Proceeds of Crime Act (the “Act”) and the Agent (for itself and not on behalf of any Lender) hereby notifies the Borrower that pursuant to the
requirements of the Act, it is required to obtain, verify and record information that identifies the Borrower, which information includes the name and address of the Borrower and other information that will allow such Lender or the Agent, as
applicable, to identify the Borrower in accordance with the Act. The Borrower hereby agrees to provide such information promptly upon the request of any Lender or the Agent. No part of the proceeds of the Advances will be used by any Loan Party,
directly or indirectly, for any purpose which would contravene or breach the Act or the Criminal Code (Canada). 
 SECTION 9.15.
Integration. 
 This Agreement and the other Loan Documents represent the agreement of the Borrower, the Agent and the
Lenders with respect to the subject matter hereof and thereof, and there are no promises, undertakings, representations or warranties by the Agent or any Lender relative to subject matter hereof and thereof not expressly set forth or referred to
herein or in the other Loan Documents. 
 SECTION 9.16. Replacement of Lenders 

If any Lender requests compensation under Section 2.12 or if the Borrower is required to pay any additional amount to any
Lender or any Governmental Authority for the account of any Lender pursuant to Section 2.15, if any Lender does not consent (a “Non-Consenting Lender”) to a proposed amendment, waiver, consent or release with respect to
any Loan Document that requires the consent of each Lender and that has been approved by the Required Lenders or any Lender is a Defaulting Lender or Deteriorating Lender, then the Borrower may, at its sole expense and effort, upon notice to such
Lender and the Agent, require such Lender to assign and delegate, without recourse (in accordance with and subject to the restrictions contained in, and consents required by, Section 9.07), all of its interests, rights and obligations
under this Agreement and the related Loan Documents to an assignee that shall assume such obligations (which assignee may be another Lender, if a Lender accepts such assignment), provided that: 

  
 77 

 (a) the Borrower shall have paid to the Agent the assignment fee specified
in Section 9.07; 
 (b) such Lender shall have received payment of an amount equal to the
outstanding principal of its Advances, accrued interest thereon, accrued fees and all other amounts payable to it hereunder and under the other Loan Documents from the assignee (to the extent of such outstanding principal and accrued interest and
fees) or the Borrower (in the case of all other amounts); 
 (c) in the case of any such assignment resulting
from a claim for compensation under Section 2.12 or payments required to be made pursuant to Section 2.15, such assignment will result in a reduction in such compensation or payments thereafter; 

(d) with respect to the replacement of any Non-Consenting Lender, such amendment, waiver or consent can be effected as a
result of such assignment (together with all other assignments required by the Agent to be made pursuant to this paragraph); and 
 (d) such assignment does not conflict with applicable laws. 
 A Lender shall not
be required to make any such assignment or delegation if, prior thereto, as a result of a waiver by such Lender or otherwise, the circumstances entitling the Borrower to require such assignment and delegation cease to apply. 

SECTION 9.17. No Advisory or Fiduciary Capacity. 
 In connection with all aspects of each transaction contemplated hereby, the Loan Parties each acknowledge and agree that: (i) the credit facility provided for hereunder and any related arranging or
other services in connection therewith (including in connection with any amendment, waiver or other modification hereof or of any other Loan Document) are an arm’s-length commercial transaction between the Loan Parties, on the one hand, and the
Credit Parties, on the other hand, and each of the Loan Parties is capable of evaluating and understanding and understands and accepts the terms, risks and conditions of the transactions contemplated hereby and by the other Loan Documents (including
any amendment, waiver or other modification hereof or thereof); (ii) in connection with the process leading to such transaction, the each Credit Party is and has been acting solely as a principal and is not the financial advisor, agent or
fiduciary, for the Loan Parties or any of their respective Affiliates, stockholders, creditors or employees or any other Person; (iii) none of the Credit Parties has assumed or will assume an advisory, agency or fiduciary responsibility in
favor of the Loan Parties with respect to any of the transactions contemplated hereby or the process leading thereto, including with respect to any amendment, waiver or other modification hereof or of any other Loan Document (irrespective of whether
any of the Credit Parties has advised or is currently advising any Loan Party or any of its Affiliates on other matters) and none of the Credit Parties has any obligation to any Loan Party or any of its Affiliates with respect to the transactions
contemplated hereby except those obligations expressly set forth herein and in the other Loan Documents; (iv) the Credit Parties and their respective Affiliates may be engaged in a broad range of transactions that involve interests that differ
from those of the Loan Parties and their respective Affiliates, and none of the Credit Parties has any obligation to disclose any of such interests by virtue of any advisory, agency or fiduciary relationship; and (v) the Credit Parties have not
provided and will not provide any legal, accounting, regulatory or tax advice with respect to any of the transactions contemplated hereby (including any amendment, waiver or other modification hereof or of any other Loan Document) and each of the
Loan Parties has consulted its own legal, accounting, regulatory and tax advisors to the extent it has deemed appropriate. Each of the Loan Parties hereby waives and releases, to the fullest extent permitted by law, any claims that it may have
against each of the Credit Parties with respect to any breach or alleged breach of agency or fiduciary duty. 

  
 78 

 SECTION 9.18. Press Releases. 

(a) Each Credit Party executing this Agreement agrees that neither it nor its Affiliates will in the future issue any press releases or
other public disclosure using the name of the Agent, any Co-Collateral Agent or their respective Affiliates or referring to this Agreement or the other Loan Documents without at least two (2) Business Days’ prior notice to Agent and the
Co-Collateral Agents and without the prior written consent of Agent and the Co-Collateral Agents unless (and only to the extent that) such Credit Party or Affiliate is required to do so under applicable law and then, in any event, such Credit Party
or Affiliate will consult with the Agent and the Co-Collateral Agents before issuing such press release or other public disclosure. 
 (b) Subject to obtaining the approval referred to in the following sentence, the Borrower consents to the publication by the Agent, any Co-Collateral Agent or any Lender of advertising material relating
to the financing transactions contemplated by this Agreement using any Loan Party’s name, product photographs, logo or trademark. The Agent, the applicable Co-Collateral Agent or such Lender shall provide a draft reasonably in advance of any
advertising material to the Borrower for review and approval (which approval shall not be unreasonably withheld or delayed) prior to the publication thereof. The Agent reserves the right to provide to industry trade organizations information
necessary and customary for inclusion in league table measurements. 
 SECTION 9.19. Judgment Currency. 

(a) If, for the purpose of obtaining or enforcing judgment against the Borrower in any court in any jurisdiction, it becomes
necessary to convert into any other currency (the “Judgment Currency”) an amount due in Canadian Dollars or Dollars under this Agreement, the conversion will be made at the rate of exchange prevailing on the Business Day immediately
preceding: 
 (i) the date of actual payment of the amount due, in the case of any proceeding in the courts of
the Province of Ontario or in the courts of any other jurisdiction that will give effect to such conversion being made on such date; or 
 (ii) the date on which the judgment is given, in the case of any proceeding in the courts of any other jurisdiction (the “Judgment Conversion Date”). 

(b) If, in the case of any proceeding in the court of any jurisdiction referred to in Section 9.11(a) above, there
is a change in the rate of exchange prevailing between the Judgment Conversion Date and the date of actual payment of the amount due, the Borrower will pay such additional amount (if any, but in any event not a lesser amount) as may be necessary to
ensure that the amount paid in the Judgment Currency, when converted at the rate of exchange prevailing on the date of payment, will produce the amount of Canadian Dollars or Dollars, as the case may be, which could have been purchased with the
amount of Judgment Currency stipulated in the judgment or judicial order at the rate of exchange prevailing on the Judgment Conversion Date. 
 (c) The term “rate of exchange” in this Section 9.18 means: 
 (i) for a conversion of Canadian Dollars to the Judgment Currency, the reciprocal of the official noon rate of exchange published by the Bank of Canada for the date in question for the conversion of the
Judgment Currency to Canadian Dollars; 
 (ii) for a conversion of Dollars to the Judgment Currency when the
Judgment Currency is Canadian Dollars, the official noon rate of exchange published by the Bank of Canada for the date in question for the conversion of Dollars to Canadian Dollars; 

(iii) for a conversion of Dollars to the Judgment Currency when the Judgment Currency is not Canadian Dollars, the
effective rate obtained when a given amount of Dollars is converted to Canadian Dollars at the rate determined pursuant to Section 9.19(c)(ii) and the result thereof is then converted to the Judgment Currency pursuant to
Section 9.19(c)(i); or 

  
 79 

 (iv) if a required rate is not so published by the Bank of Canada for any
such date, the spot rate quoted by the Agent at Toronto, Canada at approximately noon (Toronto time) on that date in accordance with its normal practice for the applicable currency conversion in the wholesale market. 

SECTION 9.20. Security for Money Borrowed. 
 Notwithstanding (i) any of the terms of this Agreement or any other Loan Document or (ii) the occurrence of the Effective Date, no Security Document will secure any loan or other indebtedness
for money borrowed (or premium or interest in respect thereof) or secure any guarantee by the Borrower of (or any indemnity for or similar obligation of the Borrower respecting the payment of) any loan or other indebtedness for money borrowed (or
premium or interest in respect thereof), incurred prior to the time that the outstanding balance of the Senior Notes is paid in full (or if the Senior Notes are repaid with proceeds of Advances hereunder, until such Advance is made) and the
documents and agreements evidencing the Senior Notes shall have been terminated and be of no further force and effect; provided that nothing contained herein shall affect the grant or attachment of the security interest granted by any Loan
Party in favor of the Control Co-Collateral Agent pursuant to the Security Documents. 
 SECTION 9.21. Language.

 The parties hereto confirm that it is their wish that this Agreement and any other document executed in connection with the
transactions contemplated herein (including, without limitation, the other Loan Documents) be drawn up in the English language only and that all other documents contemplated thereunder or relating thereto, including notices, may also be drawn up in
the English language only. Les parties aux présentes confirment que c’est leur volonté que cette convention et les autres documents de crédit soient rédigés en langue anglaise seulement et que tous les
documents, y compris tous avis, envisagés par cette convention et les autres documents peuvent être rédigés en langue anglaise seulement. 
 [Remainder of page intentionally left blank] 

  
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 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their
respective officers thereunto duly authorized, as of the date first above written. 
  

			
	SEARS CANADA INC., as Borrower
		
	By:	 	/s/ Allen Ravas
	Name:	 	Allen Ravas
	Title:	 	Senior Vice-President and Chief Financial Officer

  
 Signature Page
to Credit Agreement 

 
			
	WELLS FARGO CAPITAL FINANCE CORPORATION CANADA,
	as Agent, Co-Collateral Agent, a Lender, and Swingline Lender
		
	By:	 	/s/ William Chan
	 Name:
	 	William Chan
	 Title:
	 	Director

  
 Signature Page
to Credit Agreement 

 
			
	GE CANADA FINANCE HOLDING COMPANY,
	as Co-Collateral Agent, Documentation Agent, and as a Lender
		
	By:	 	/s/ Richard Zeni
	Name:	 	Richard Zeni
	Title:	 	Duly Authorized Signatory

  
 Signature Page
to Credit Agreement 

 
			
	BANK OF MONTREAL,
	as Co-Syndiciation Agent, and as a Lender
		
	By:	 	/s/ Sean P. Gallaway
	Name:	 	Sean P. Gallaway
	Title:	 	Vice President

  
 Signature Page
to Credit Agreement 

 
			
	CIBC ASSET-BASED LENDING INC.,
	as Co-Syndiciation Agent, and as a Lender
		
	By:	 	/s/ Joseph Arnone
	Name:	 	Joseph Arnone
	Title:	 	Director
		
	By:	 	/s/ M. Sturrock
	Name:	 	M. Sturrock
	Title:	 	Senior Director

  
 Signature Page
to Credit Agreement 

 
			
	ROYAL BANK OF CANADA,
	as a Lender
		
	By:	 	/s/ Dan Mascioli
	Name:	 	Dan Mascioli
	Title:	 	Attorney-in-Fact
		
	By:	 	/s/ M. Fernandes
	Name:	 	M. Fernandes
	Title:	 	Attorney-in-Fact

  
 Signature Page
to Credit Agreement 

 
			
	THE TORONTO-DOMINION BANK,
	as a Lender
		
	By:	 	/s/ Darcy Mack
	Name:	 	Darcy Mack
	Title:	 	Vice President
		
	By:	 	/s/ Dan Flaro
	Name:	 	Dan Flaro
	Title:	 	Vice President

  
 Signature Page
to Credit Agreement 

 
			
	DEUTSCHE BANK AG, CANADA BRANCH,
	as a Lender
		
	By:	 	/s/ Marcellus Leung
	Name:	 	Marcellus Leung
	Title:	 	Assistant Vice President
		
	By:	 	/s/ Rupert Gomes
	Name:	 	Rupert Gomes
	Title:	 	Vice President

  
 Signature Page
to Credit Agreement 

 
			
	BANK OF AMERICA, N.A., CANADA BRANCH, as a Lender
		
	By:	 	/s/ Medina Sales de Andrade
	Name:	 	Medina Sales de Andrade
	Title:	 	Vice President

  
 Signature Page
to Credit Agreement 

 SCHEDULE IA 
 Pricing Grid 
  

											
	 Level
	  	 Excess Availability
	  	 Applicable Margin for BA
Rate Advances and LIBOR
Rate
Advances
	  	 Applicable Margin for Base
Rate Advances and Prime
Rate
Advances
	  	 Standby L/C Fees
	  	 Commercial L/C Fees

	1	  	Greater than 50% of the Line Cap	  	2.50%	  	2.00%	  	2.50%	  	2.00%
						
	2	  	Less than or equal to 50% of the Line Cap, but greater than 25% of the Line Cap	  	2.75%	  	2.25%	  	2.75%	  	2.25%
						
	3	  	Less than or equal to 25% of the Line Cap	  	3.00%	  	2.50%	  	3.00%	  	2.50%

 Changes in the Applicable Margin resulting from changes in Excess Availability shall become effective on
the first day (the “Adjustment Date”) following the fiscal quarter ended immediately preceding such Adjustment Date; provided, however, that notwithstanding anything to the contrary set forth herein, upon the occurrence of an
Event of Default, at the direction of the Required Lenders, the Agent shall immediately increase the Applicable Margin to that set forth in Level 3 (even if the Excess Availability requirements for a different Level have been met) during the
continuance of such Event of Default; provided further if any Borrowing Base Certificates are at any time restated or otherwise revised (including as a result of an audit) or if the information set forth in any Borrowing Base Certificates
otherwise proves to be false or incorrect such that the Applicable Margin would have been higher than was otherwise in effect during any period, without constituting a waiver of any Default or Event of Default arising as a result thereof, interest
due under this Agreement shall be immediately recalculated at such higher rate for any applicable periods and shall be due and payable on demand. 

 SCHEDULE 1.01 
 Lenders; Commitments 
  

			
	 Lenders
	  	 Commitments

	 Wells Fargo Capital Finance Corporation Canada
	  	CAN$150,000,000
	 GE Canada Finance Holding Company
	  	CAN$200,000,000
	 Bank of Montreal
	  	CAN$120,000,000
	 Canadian Imperial Bank of Commerce
	  	CAN$120,000,000
	 Royal Bank of Canada
	  	CAN$60,000,000
	 The Toronto-Dominion Bank
	  	CAN$60,000,000
	 Bank of America, N.A., Canada Branch
	  	CAN$50,000,000
	 Deutsche Bank AG, Canada Branch
	  	CAN$40,000,000
	 TOTAL
	  	CAN$800,000,000

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