On August 15, 2012, William R. Harker was appointed Chairman of the Board of Directors of Sears Hometown and Outlet Stores, Inc. (SHO). He will continue to serve as Chairman of the Board of Directors of SHO following the completion of the separation of SHO from Sears Holdings Corporation (Holdings), which is expected to occur in third quarter 2012. Also, Mr. Harker resigned as Senior Vice President of Holdings, effective August 15,
2012, but will serve as a consultant to Holdings. In addition, he is expected to continue to serve as a member of the Board of Directors of Sears Canada Inc.