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For Immediate
Release Contact for Media: Vincent Power Sears Canada, Corporate
Communications vpower@sears.ca Sears Canada Announces Changes to License
Agreement with Sears Holdings TORONTO October 2, 2014 Sears Canada Inc.
(the Company) (TSX: SCC) announced today that, in connection with the
rights offering announced by Sears Holdings Corporation (NASDAQ: SHLD), Sears
Holdings and the Company have agreed to extend the agreement pursuant to
which the Company licences the right to use the Sears name and certain
other brand names associated with a number of its major product lines. With
this change, the agreement will continue to apply for so long as Sears
Holdings continues to own 10% of the voting shares of the Company (the
current trigger is 25%) and the Company will have the continued right to use
the trademarks on a royalty-free basis after termination for 5 years
(currently 3 years). If, prior to the completion of the 5-year period, the
Company reasonably determines that a longer transition period is necessary,
Sears Holdings will extend the license agreement for a further transition
period not to exceed 4 years, at a below market rate. This release contains
information which is forward-looking and is subject to important risks and
uncertainties. Forward-looking information concerns, among other things, the
changes to the license agreement between Sears Holdings and the Company.
Often, but not always, forward-looking information can be identified by the
use of words such as plans, expects or does not expect, is expected,
scheduled, estimates, intends, anticipates or does not anticipate
or believes, or variations of such words and phrases, or statements that
certain actions, events or results may, could, would, might or will
be taken, occur or be achieved. Although the Company believes that the
forward-looking information presented is reasonable, such forward-looking
information involves known and unknown risks, uncertainties and other factors
which may cause actual results, performance or achievements to be materially
different from any future results, performance or achievements expressed or
implied by the forward-looking information and undue reliance should not be
placed on such information. Factors which could cause actual results to
differ materially from current expectations include, but are not limited to,
the negotiation of definitive documents between Sears Holdings and the
Company. The forward-looking information in this release is, unless otherwise
indicated, stated as of the date hereof and is presented for the purpose of
assisting investors and others in understanding the changes to the license
agreement and may not be appropriate for other purposes. The Company does not
undertake any obligation to update publicly or to
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