Document:

EX-10.3

 Exhibit 10.3 

EXECUTION VERSION 

[THIS LEASE IS NOT TO BE RECORDED] 

MASTER LEASE 
 by and
among 
 SERITAGE SRC FINANCE LLC 

and 
 SERITAGE KMT
FINANCE LLC, 
 Landlord, 

and 
 KMART OPERATIONS
LLC 
 and 
 SEARS
OPERATIONS LLC, 
 Tenant 

 TABLE OF CONTENTS 

 

									
	 	 	 	  	 	  	Page	 
		
	ARTICLE I DEMISED PREMISES	  	 	2	  
		 	 1.1
	  	 Demised Premises
	  	 	2	  
		 	 1.2
	  	 Single, Unitary, Indivisible Lease
	  	 	3	  
		 	 1.3
	  	 Joint and Several Liability
	  	 	4	  
		 	 1.4
	  	 Term
	  	 	5	  
		 	 1.5
	  	 Renewal Terms
	  	 	5	  
		 	 1.6
	  	 Nonprofitable Property
	  	 	7	  
		 	 1.7
	  	 Recapture Space
	  	 	10	  
		 	 1.8
	  	 Landlord’s Termination Right as to Additional Recapture Space
	  	 	17	  
		 	 1.9
	  	 Landlord’s Termination Right as to 100% Recapture Property
	  	 	21	  
		 	 1.10
	  	 Reservation of Rights Concerning Leases and Recapture Space
	  	 	24	  
		 	 1.11
	  	 General Provisions
	  	 	25	  
		 	 1.12
	  	 Separation of Leases
	  	 	27	  
		 	 1.13
	  	 Self-Help
	  	 	29	  
		
	 ARTICLE II DEFINITIONS
	  	 	29	  
		 	 2.1
	  	 Definitions
	  	 	29	  
		
	ARTICLE III RENT	  	 	50	  
		 	 3.1
	  	 Rent
	  	 	50	  
		 	 3.2
	  	 Late Payment of Rent
	  	 	51	  
		 	 3.3
	  	 Method of Payment of Rent and Other Sums and Charges
	  	 	51	  
		 	 3.4
	  	 Net Lease
	  	 	52	  
		
	 ARTICLE IV IMPOSITIONS
	  	 	52	  
		 	 4.1
	  	 Impositions
	  	 	52	  
		 	 4.2
	  	 Permitted Contests
	  	 	54	  
		 	 4.3
	  	 General Tax Indemnity
	  	 	55	  
		 	 4.4
	  	 Utility Charges
	  	 	55	  
		 	 4.5
	  	 Installment Expenses
	  	 	56	  
		
	 ARTICLE V NO ABATEMENT
	  	 	58	  
		 	 5.1
	  	 No Termination, Abatement, Etc.
	  	 	58	  
		 	 5.2
	  	 Assumption of Risk of Loss
	  	 	59	  
		
	 ARTICLE VI OWNERSHIP OF DEMISED PREMISES
	  	 	60	  
		 	 6.1
	  	 Ownership of the Demised Premises
	  	 	60	  
		 	 6.2
	  	 Tenant’s Property
	  	 	61	  
		
	 ARTICLE VII CONDITION AND USE OF DEMISED PREMISES
	  	 	61	  
		 	 7.1
	  	 Condition of the Demised Premises
	  	 	61	  
		 	 7.2
	  	 Use of the Demised Premises; Permitted, Prohibited and Restricted Uses
	  	 	62	  
		 	 7.3
	  	 Operating Covenant
	  	 	65	  
		 	 7.4
	  	 Signs
	  	 	66	  
		 	 7.5
	  	 Multi-Tenant Occupancy Date
	  	 	67	  
		
	 ARTICLE VIII ALTERATIONS
	  	 	67	  
		 	 8.1
	  	 Alteration and Additions
	  	 	67	  
		 	 8.2
	  	 Title to Alterations
	  	 	68	  

  
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	ARTICLE IX TRANSFER		 	68	  
			 9.1
		Transfer; Subletting and Assignment		 	68	  
			 9.2
		Permitted Subletting		 	69	  
			 9.3
		Permitted Assignments		 	69	  
			 9.4
		Required Assignment and Subletting Provisions		 	70	  
			 9.5
		Costs		 	71	  
			 9.6
		No Release of Tenant’s Obligations		 	71	  
			 9.7
		No Restriction on Landlord		 	71	  
			 9.8
		Free-Standing SAC Leases		 	71	  
		
	ARTICLE X MAINTENANCE AND COMMON AREAS		 	72	  
			 10.1
		Maintenance and Repair; Trade Fixtures		 	72	  
			 10.2
		Common Areas		 	75	  
			 10.3
		Landlord’s Responsibility for Leasehold Improvements Subsequent to Multi-Tenant Occupancy Date		 	78	  
			 10.4
		Landlord’s Warranties and Guaranties		 	78	  
			 10.5
		Tenant’s Responsibility under Lands’ End Agreements and Sears Hometown License Agreement		 	79	  
		
	ARTICLE XI INSURANCE		 	81	  
			 11.1
		General Insurance Requirements		 	81	  
			 11.2
		Landlord’s “All-Risk” Insurance		 	83	  
			 11.3
		Additional Insurance		 	83	  
			 11.4
		Waiver of Subrogation		 	83	  
			 11.5
		Policy Requirements		 	84	  
			 11.6
		Increase in Limits		 	84	  
			 11.7
		Blanket Policy		 	84	  
			 11.8
		No Separate Insurance		 	84	  
		
	ARTICLE XII CASUALTY AND CONDEMNATION		 	84	  
			 12.1
		Casualty; Property Insurance Proceeds		 	84	  
			 12.2
		Tenant’s Obligations Following Casualty		 	86	  
			 12.3
		No Abatement of Rent		 	86	  
			 12.4
		Waiver		 	87	  
			 12.5
		Insurance Proceeds Paid to Landlord Mortgagee		 	87	  
			 12.6
		Tenant’s Right to Terminate Upon Damage Near End of Term		 	87	  
			 12.7
		Tenant’s Right to Terminate Upon Total Destruction		 	88	  
			 12.8
		Condemnation		 	88	  
			 12.9
		Condemnation Proceeds Paid to Landlord Mortgagee		 	89	  
			 12.10
		Landlord’s Restoration Obligations		 	90	  
			 12.11
		Nonprofitable Properties		 	91	  
		
	ARTICLE XIII DEFAULT		 	91	  
			 13.1
		Events of Default		 	91	  
			 13.2
		Certain Remedies		 	94	  
			 13.3
		Damages		 	94	  
			 13.4
		Receiver		 	95	  
			 13.5
		Waiver		 	96	  
			 13.6
		Application of Funds		 	96	  
			 13.7
		Landlord’s Right to Cure Tenant’s Default		 	96	  
			13.8		Default by Entities Comprising Tenant		 	96	  

  
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	ARTICLE XIV LANDLORD’S FINANCING		 	96	  
			14.1		Landlord’s Financing		 	96	  
			14.2		Attornment		 	97	  
			14.3		Compliance with Landlord Mortgage Documents		 	98	  
			14.4		Landlord Mortgagee Generally		 	98	  
			14.5		Limitation of Successor Landlord Liability		 	99	  
			14.6		Lease Modifications		 	99	  
			14.7		Notice of Default to Landlord Mortgagee		 	99	  
			14.8		Delivery of Notices to Landlord Mortgagee		 	99	  
			14.9		Right of Landlord Mortgagee to Enforce Lease		 	100	  
			14.10		Exercise of Landlord’s Discretion		 	100	  
			14.11		Cure of Landlord Defaults		 	100	  
			14.12		Indemnification		 	100	  
		
	ARTICLE XV TENANT FINANCING		 	103	  
			15.1		No Leasehold Mortgages		 	103	  
			15.2		Rights of Lenders to Obtain Collateral		 	103	  
		
	ARTICLE XVI NO MERGER		 	103	  
			16.1		No Merger		 	103	  
		
	ARTICLE XVII CONVEYANCE BY LANDLORD		 	103	  
			17.1		Conveyance by Landlord		 	103	  
		
	ARTICLE XVIII QUIET ENJOYMENT		 	104	  
			18.1		Quiet Enjoyment		 	104	  
		
	ARTICLE XIX NOTICES		 	104	  
			19.1		Notices		 	104	  
		
	ARTICLE XX ENVIRONMENTAL INDEMNITY		 	105	  
			20.1		Hazardous Substances		 	105	  
			20.2		Notices		 	105	  
			20.3		Remediation		 	106	  
			20.4		Indemnity		 	107	  
			20.5		Environmental Inspections		 	108	  
			20.6		Additional Provisions		 	109	  
			20.7		Survival		 	109	  
		
	ARTICLE XXI MISCELLANEOUS		 	109	  
			21.1		Survival		 	109	  
			21.2		Partial Invalidity		 	109	  
			21.3		Non-Recourse		 	109	  
			21.4		Successors and Assigns		 	110	  
			21.5		Governing Law		 	110	  
			21.6		Consent to Jurisdiction; Waiver of Trial by Jury		 	110	  
			21.7		Entire Agreement		 	111	  
			21.8		Headings		 	111	  
			21.9		Counterparts		 	111	  
			21.10		Interpretation		 	111	  

  
 iii 

									
			21.11		Time of Essence		 	112	  
			21.12		Further Assurances		 	112	  
			21.13		Landlord’s Right to Inspect and Show the Demised Premises		 	112	  
			21.14		Acceptance of Surrender		 	112	  
			21.15		Non-Waiver		 	112	  
			21.16		Accord and Satisfaction		 	112	  
			21.17		Recording		 	113	  
			21.18		Liens		 	113	  
			21.19		Cumulative Remedies		 	113	  
			21.20		Rules and Regulations		 	113	  
			21.21		Confidentiality and Media Releases		 	114	  
			21.22		Authority		 	114	  
			21.23		Overdue Rate		 	114	  
			21.24		Delivery of Information		 	114	  
			21.25		Puerto Rico Premises		 	116	  
		
	ARTICLE XXII MEMORANDUM OF LEASE		 	117	  
			22.1		Memorandum of Lease		 	117	  
		
	ARTICLE XXIII BROKERS		 	117	  
			23.1		Brokers		 	117	  
		
	ARTICLE XXIV ANTI-TERRORISM		 	118	  
			24.1		Anti-Terrorism Representations		 	118	  
		
	ARTICLE XXV REIT PROTECTION		 	118	  
			25.1		REIT Protection		 	118	  
		
	ARTICLE XXVI FAIR MARKET RENT—APPRAISAL		 	120	  
			26.1		Fair Market Rent		 	120	  
		
	ARTICLE XXVII OFFICERS’ CERTIFICATES—STATUS OF LEASE		 	121	  
			27.1		Certificate of Tenant		 	121	  
			27.2		Certificate of Landlord		 	121	  
		
	ARTICLE XXVIII CONDITION OF DEMISED PREMISES ON EXPIRATION OR TERMINATION OF MASTER LEASE		 	121	  
			28.1		Delivery of Demised Premises		 	121	  
		
	ARTICLE XXIX ALTERNATIVE DISPUTE RESOLUTION—EXPEDITED ARBITRATION		 	122	  
			29.1		Attempted Dispute Resolution		 	122	  
			29.2		Binding Arbitration		 	123	  

  
 iv 

 Schedules and Exhibits 

 

			
	Exhibit A		Properties
	Exhibit B		Prohibited Uses
	Exhibit C		Form of SNDA
	Exhibit D		Lands’ End Premises
		
	Schedule 1.7(d)		Form of Recapture Notice
	Schedule 1.7(j)(ii)		General Requirements and Conditions
	Schedule 1.8(a)		Form of Additional Recapture Space Termination Notice
	Schedule 2.1(a)		EBITDAR Methodology
	Schedule 2.1(b)		Lease Guarantors
	Schedule 10.2(e)		Operating Expenses
	Schedule 14.4		Landlord Mortgage Documents
	Schedule 20.6		Additional Provisions with Respect to Environmental Matters with Respect to the Demised Premises and SACs

  
 v 

 MASTER LEASE 

This MASTER LEASE (this “Master Lease”) is entered into as of July 7, 2015, by and among Seritage SRC Finance LLC
and Seritage KMT Finance LLC (together with their successors and assigns, collectively, jointly and severally, “Landlord”), and Kmart Operations LLC (“Kmart Tenant”) and Sears Operations LLC
(“Sears Tenant”) (together with their permitted successors and assigns, collectively, jointly and severally, “Tenant”). 

RECITALS 
 Capitalized
terms used in this Master Lease and not otherwise defined herein are defined in Article II hereof. 
 Landlord is the fee owner
of those certain properties identified on Exhibit A attached hereto, as the same may be deleted from time to time as further provided herein (each a “Property”, and collectively,
“Properties”). Pursuant to that certain Subscription, Distribution and Purchase and Sale Agreement, dated as of June 8, 2015 (the “Purchase Agreement”), by and between Sears Holdings Corporation
and Seritage Growth Properties, Landlord desires to lease the Demised Premises (as defined below), as one economic unit, to Tenant and Tenant desires to lease the Demised Premises, as one economic unit, from Landlord upon the terms set forth in this
Master Lease. 
 1. As described in Section 1.2, below, this Master Lease constitutes one single, unitary, indivisible
lease of the entirety of the Demised Premises and not separate or severable leases governed by similar terms. The Demised Premises constitutes one indivisible economic unit, and the Base Rent (as defined below) and all other economic and other
material lease provisions have been extensively negotiated and agreed to, based on the understanding and agreement of the parties (and each of the parties has entered into this Master Lease in reliance thereon, and it is a material inducement to
each of them), that the demise of all of the Demised Premises to Tenant herein is a single, unitary, indivisible, composite, and inseparable transaction. Except as expressly provided in this Master Lease for specific purposes (and then only to the
extent so expressly provided), all provisions of this Master Lease apply equally and uniformly to all of the Demised Premises as one indivisible unit. The parties intend that this Master Lease shall be, and the provisions of this Master Lease shall
at all times be construed, interpreted and applied so as to carry out their mutual objective to create a single, unitary, indivisible lease of all of the Demised Premises and, in particular but without limitation, that, for purposes of 11 U.S.C.
Section 365, or any successor or replacement thereof or any analogous state law, or any attempt thereunder to assume, reject or assign this Master Lease in whole or in part, this Master Lease is one indivisible and nonseverable lease and
executory contract dealing with one legal and economic unit and that this Master Lease must be assumed, rejected or assigned as a whole with respect to all (and only as to all) of the Demised Premises. 

2. Exhibit A attached hereto also contains a list of the 224 retail stores currently operated by or under the authority of
either (a) Kmart Tenant (such retail stores as may be operated by Kmart Tenant or its Affiliates from time to time, individually, a “Kmart Store,” and collectively, “Kmart Stores”), or
(b) Sears Tenant (such retail stores as may be operated by Sears Tenant or its Affiliates from time to time, individually, a “Sears Store,” and collectively, 

 
“Sears Stores”) (which Sears Stores shall include each related Sears automotive care center (individually, a “SAC” and collectively,
“SACs”); each Kmart Store and each Sears Store being referred to individually as a “Store”)). 
 NOW,
THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows: 

ARTICLE I 
 DEMISED
PREMISES 
 1.1 Demised Premises. Upon and subject to the terms and conditions hereinafter set forth, Landlord leases
to Tenant and Tenant leases from Landlord all of Landlord’s right, title and interest in and to the following assets and interests as described in Section 1.1(a)-(c) below (individually and collectively, as the context may
require, as one economic unit, the “Demised Premises”), further subject to the terms, covenants and conditions in Section 1.1(d)-(f) below: 

(a) (i) Prior to the Multi-Tenant Occupancy Date with respect to each individual Property, all of such Property and (ii) after the
Multi-Tenant Occupancy Date, the portion of each individual Property on which the Store and all Leased Improvements (as hereinafter defined) is located (but excluding, in each case, all real property which is (y) subject to a Lease (as
hereinafter defined) as of the date hereof or (z) part of the Common Areas (except the Exclusive Store Areas, as hereinafter defined) (subject to Tenant’s rights to use the Common Areas as provided herein), collectively, the
“Land”); 
 (b) (i) all buildings, structures, Fixtures (as hereinafter defined) and other improvements of every
kind now or hereafter located on the Land (as the Land may be constituted before or after the Multi-Tenant Occupancy Date, as applicable), including, as applicable, the Store, all free-standing buildings and all other buildings and improvements
connected thereto (including all physical entranceways to an adjacent mall to the extent located in the wall of a Store or other such building), together with (ii) prior to the Multi-Tenant Occupancy Date with respect to each individual
Property, (A) all alleyways and connecting tunnels, passageways and entranceways to any adjacent malls, shopping centers or other third-party properties, sidewalks, utility pipes, conduits and lines (on-site and off-site to the extent Landlord
has any interest in the same), and (B) all parking areas and roadways appurtenant to such buildings and structures (collectively, the “Leased Improvements”); provided, that “Leased Improvements” shall
exclude any asset not constituting “real property” as that term is defined in Treasury Regulations § 1.856-3(d); 
 (c)
All equipment, machinery, fixtures, and other items of property, including all components thereof, that (i) are now or hereafter located in, on or used in connection with and permanently affixed to or otherwise incorporated into the Leased
Improvements and (ii) qualify as Long-Lived Assets, together with all replacements, modifications, alterations and additions thereto, and other items of real and/or personal property, including all components thereof, now and hereafter located
in, on or used in connection with, and permanently affixed to or incorporated into the Leased Improvements, including all HVAC equipment, all furnaces, boilers, heaters, electrical equipment, heating, plumbing, lighting, ventilating, refrigerating,
incineration, air- and water-pollution-control, waste-disposal, air-cooling and air-conditioning 

  
 2 

 
systems and apparatus, security systems, sprinkler systems and fire- and theft-protection equipment, elevators, escalators and lifts and Environmental Equipment (the
“Fixtures”), all of which, to the greatest extent permitted by law, are hereby deemed by the parties hereto to constitute real estate, together with all equipment, parts and supplies used to service, repair, maintain and
equip the foregoing and all replacements, modifications, alterations and additions thereto; provided, that the foregoing shall exclude all items included within Tenant’s Property; provided, further, that
“Fixtures” shall exclude any asset not constituting “real property” as that term is defined in Treasury Regulations § 1.856-3(d); 

(d) The Demised Premises is leased together with and shall be subject to all of the following (individually, an
“Encumbrance” and collectively, “Encumbrances”): (i) any mortgage, deed of trust, lien, charge, pledge, improvisation, security interest, defect in title, encroachment, or other matter whatsoever
affecting title to any of the Demised Premises or any portion thereof or any interest therein, whether or not of record, (ii) all Operating Agreements identifying and all covenants, conditions, restrictions, declarations, easements, rights of
way, rights and obligations under the Operating Agreements and other matters relating to or appertaining to the Property, the Land, the Leased Improvements, the Common Areas or affecting the Demised Premises as of the Commencement Date and such
subsequent Operating Agreements, covenants, conditions, restrictions, easements, declarations and other matters as may be agreed to by Landlord (or by Tenant, with Landlord’s prior reasonable consent) so long as the same do not adversely affect
the Property and otherwise are consistent with the terms and conditions of this Master Lease, in each case whether or not of record, and (iii) all Permitted Encumbrances, including any matters which would be disclosed by an inspection or
accurate survey of the Demised Premises; provided, however, that Landlord shall not from and after the date of this Master Lease without Tenant’s prior written consent further encumber the Demised Premises (other than under or in
connection with any Landlord Mortgages and Landlord Mortgage Documents, subject to the provisions of Article XIV) in such a manner as would materially interfere with Tenant’s use, occupancy or operation of the Demised Premises or
materially increase Tenant’s obligations or liabilities or materially decrease Tenant’s rights or remedies under this Master Lease. For the avoidance of doubt, Landlord shall have the right in its reasonable discretion exercised in good
faith without Tenant’s consent to grant, convey or enter into easements, covenants, restrictions, declarations, rights of way agreements, agreements in lieu of condemnation, street widening or improvement or traffic control or other similar
agreements, and agreements in connection with utilities, storm and sanitary sewers drainage and similar agreements, with governmental authorities and/or utility companies and which are for the benefit of the Demised Premises or the Property or
Common Areas (together with all further encumbrances which may be consented to by Tenant, “Further Encumbrances”); and 

(e) Landlord shall, within a reasonable time after receipt thereof, forward to Tenant a copy of any and all default notices and/or demands
received by Landlord pursuant to the Operating Agreements with respect to the Demised Premises and keep Tenant reasonably apprised with respect thereto. 

1.2 Single, Unitary, Indivisible Lease. This Master Lease constitutes one single, unitary, indivisible lease of the entirety of
the Demised Premises and not separate or severable leases governed by similar terms. The Demised Premises constitutes one indivisible economic unit, and the Base Rent and all other economic and other material lease provisions have been

  
 3 

 
extensively negotiated and agreed to, based on the understanding and agreement of the parties (and each of the parties has entered into this Master Lease in reliance thereon, and it is a material
inducement to each of them), that the demise of all of the Demised Premises to Tenant herein is a single, unitary, indivisible, composite, and inseparable transaction. Except as expressly provided in this Master Lease for specific purposes (and then
only to the extent so expressly provided), all provisions of this Master Lease apply equally and uniformly to all of the Demised Premises as one indivisible unit. An Event of Default with respect to any portion of the Demised Premises is an Event of
Default as to all of the Demised Premises. The parties intend that this Master Lease shall be, and the provisions of this Master Lease shall at all times be construed, interpreted and applied so as to carry out their mutual objective to create, a
single, unitary, indivisible lease of all of the Demised Premises and, in particular but without limitation, that, for purposes of 11 U.S.C. Section 365, or any successor or replacement thereof or any analogous state law, or any attempt
thereunder to assume, reject or assign this Master Lease in whole or in part, this Master Lease is a single, unitary, indivisible and nonseverable lease and executory contract dealing with one legal and economic unit and that this Master Lease must
be assumed, rejected or assigned as a whole with respect to all (and only as to all) of the Demised Premises. The parties may amend this Master Lease from time to time or terminate this Master Lease as to one or more Demised Premises, or separate
and include one or more Demised Premises in a separate lease for technical and/or administrative reasons; but no such termination or separation shall in any way change the single, unitary, indivisible and nonseverable nature of this Master Lease and
all of the foregoing provisions of this Section 1.2 shall continue to apply in full force. This Master Lease is separate and distinct from any and all other master leases or leases now or hereafter entered into between Landlord and
Tenant or any of their respective Affiliates, and (except with respect to the New Leases, as hereinafter provided) no breach or default under this Master Lease, on the one hand, or any such other master leases or leases, on the other hand, shall
constitute a breach or default under such other master lease or leases or this Master Lease, as the case may be. 
 1.3 Joint and
Several Liability. (a) In furtherance of the provisions of Section 1.2, and notwithstanding any provisions herein to the contrary, including the specified obligations of Kmart Tenant with respect to the Kmart Stores and the
specified obligations of Sears Tenant with respect to the Sears Stores, respectively, as provided in this Master Lease, it is understood and agreed that each Tenant Party shall be liable and responsible for the payment of all sums payable and for
the performance of all obligations performable by one or more of the entities comprising Tenant, and each Tenant Party is and shall be and remain at all times jointly and severally obligated and liable as Tenant for (a) all acts, omissions,
failures or refusals of the other Tenant Party to comply with its own respective obligations and the obligations of Tenant under this Master Lease or (b) any breach or default or Event of Default suffered, incurred or created by the other
Tenant Party under this Master Lease ((a) and (b) collectively, “Tenant Party Breach”), and Landlord shall be entitled to enforce against Tenant, Kmart Tenant and/or Sears Tenant, individually and collectively, any and
all rights and remedies under this Master Lease or otherwise available at law or in equity, including without limitation, as applicable, termination of the Master Lease, recovery of any or all of possession of the Demised Premises, recovery of all
Rent and other sums and charges and monetary damages, and all injunctive and other equitable relief, in any order and in any manner as Landlord may elect in its sole discretion, in whole or in part. Without limiting the foregoing: 

(1) Each and every Tenant Party Breach shall constitute a breach or default or Event of Default by Tenant under this Master Lease. 

  
 4 

 (2) Although the separate respective covenants and agreements of Kmart Tenant and Sears Tenant to
exclusively and continuously use, occupy and operate the Kmart Stores and the Sears Stores, respectively, may be specifically enforced against the Tenant Party under whose authority such Store is intended to be operated, each and both of such Tenant
Parties shall remain jointly and severally liable as Tenant for any Tenant Party Breach with respect to the breach or default of such covenants. 

(3) Although as a matter of administrative convenience for the Parties (i) the Base Rent and Additional Charges have been determined and
are intended to be assessed separately for accounting purposes with respect to the Kmart Stores and the Sears Stores, and (ii) it is contemplated that Kmart Tenant and Sears Tenant shall as a practical matter discharge their joint and several
respective obligations for repair, maintenance, insurance, Alterations, Recapture Separation Work, CAM Expenses, Property Document CAM Expenses, casualty restoration and all other obligations under this Master Lease separately with respect to the
Kmart Stores and the Sears Stores, which they respectively occupy, and the Common Areas with respect to each (collectively, “Premises Obligations”), Landlord shall be entitled to demand and collect all of the Base Rent and
Additional Charges, and shall be entitled to demand and obtain performance of all the Premises Obligations, from either or both Kmart Tenant and/or Sears Tenant in Landlord’s sole discretion; the foregoing provisions of this
Section 1.3(a)(3) shall not limit or vary any provisions of Section 1.2 or this Section 1.3. 
 (4) Each
of Kmart Tenant and Sears Tenant hereby unconditionally and absolutely waives and relinquishes, and covenants not to claim or assert, in all cases for the express benefit of the Landlord, any and all rights of contribution, indemnity, subrogation or
recovery (if any) against the other Tenant Party which may otherwise now or hereafter be available to the nonbreaching Tenant Party, of any and all amounts which Landlord may recover or be entitled to recover against one Tenant Party on account of a
Tenant Party Breach by the other Tenant Party, until and unless Landlord has fully recovered and received payment of all amounts and full performance of all obligations by Tenant under this Master Lease for the entire Term to which Landlord is
entitled (including all contingent obligations, indemnities and liabilities of Tenant). 
 (b) Each of the entities comprising Landlord
shall be jointly and severally liable to Tenant for the performance of all terms, covenants, conditions and obligations of Landlord under this Master Lease. 

1.4 Term. The “Term” of this Master Lease is the Initial Term plus all Renewal Terms, to the
extent exercised. The initial term of this Master Lease (the “Initial Term”) shall commence on the date hereof (the “Commencement Date”) and end on the last day of the calendar month in which the tenth
(10th) anniversary of the Commencement Date occurs, subject to renewal as set forth in Section 1.5. 
 1.5 Renewal
Terms. (a) The Initial Term of this Master Lease may be extended at the option of Tenant for an aggregate of four (4) consecutive renewal terms (“Renewal Terms”)

  
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of five (5) years each (except the fourth (4th) renewal term shall be for four (4) years) with respect to all but not less than all of the Demised Premises which are then subject
to this Master Lease, if: (i) at least three hundred sixty (360) days prior to the end of the then-current Term, Tenant delivers to Landlord Notice that it desires to exercise its right to extend this Master Lease for one (1) Renewal
Term (a “Renewal Notice”); and (ii) no Event of Default shall have occurred and be continuing on the date Landlord receives the Renewal Notice (the “Renewal Exercise Date”) and no Event of Default
for any nonpayment of Rent shall have occurred and be continuing on the first day of the applicable Renewal Term. During any such Renewal Term, except as otherwise specifically provided for herein, all of the terms and conditions of this Master
Lease shall remain in full force and effect. Each Renewal Term shall commence on the expiration date of the current Term (as previously extended) and shall end on the date immediately preceding the fifth (5th) anniversary thereof. For the
avoidance of doubt, no Renewal Notice shall be effective and no Renewal Term shall commence in the event Landlord exercises any right to terminate this Master Lease by reason of any Event of Default which has occurred and is continuing after the
Renewal Exercise Date. 
 (b) [Intentionally Omitted] 

(c) Tenant may not exercise its option with respect to any Renewal Term unless it has validly exercised its option as to all immediately
preceding Renewal Terms. 
 (d) Notwithstanding the foregoing, in the event the Base Rent for any Renewal Term is subject to the
determination of Fair Market Rent, Tenant shall have the right to irrevocably revoke any Renewal Notice by Notice to Landlord (“Renewal Revocation Notice”) given not less than the later of (x) thirty (30) days after
the Fair Market Rent (if applicable) has been determined for the Demised Premises and (y) two hundred seventy (270) days prior to the commencement of the then applicable Renewal Term, if Tenant does not wish to renew this Master Lease
after the determination of Fair Market Rent for such Renewal Term pursuant to Article XXVI, and in such event, the Master Lease shall terminate on the last day of the then-current Term and Tenant shall not have any further rights of
renewal with respect thereto or with respect to any other Renewal Terms. 
 (e) Further notwithstanding the foregoing provisions of this
Section 1.5 or the provisions of Section 1.6, 1.7, 1.8, or 1.9, Tenant shall be deemed to automatically revoke the Renewal Notice, and the same shall be automatically revoked without any further action,
with respect to a Nonprofitable Property or any Recapture Space or Additional Recapture Space (but not with respect to the remainder of the Demised Premises as to which such Renewal Notice shall remain in full force and effect) subject to any Tenant
Termination Election Notice pursuant to Section 1.6(b) given within two hundred seventy (270) days prior to the commencement of the then applicable Renewal Term or any recapture notice given by Landlord pursuant to
Section 1.6, 1.7, 1.8 or 1.9 subsequent to such Renewal Notice and prior to the commencement of the applicable Renewal Term. 

  
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 1.6 Nonprofitable Property. (a) Subject to and in accordance with all of the
terms of this Section 1.6, Tenant shall have the right to terminate this Master Lease as to any Nonprofitable Property (as hereinafter defined). 

(b) Subject to the annual limitation in this Section 1.6(b), if at any time during the Term after the end of the first Lease Year
any Store becomes Nonprofitable (a “Nonprofitable Property”), then Tenant shall have the right to terminate this Master Lease with respect to such Nonprofitable Property by giving written Notice to Landlord of such election
(a “Tenant Termination Election Notice”), which Notice shall be accompanied by an Officer’s Certificate setting forth financial data reasonably establishing that the Store is a Nonprofitable Property, and shall set forth
the date for termination which shall be a regularly scheduled date for the payment of Base Rent (“Tenant Termination Election Date”) not fewer than ninety (90) days nor more than one hundred twenty (120) days after
the date of the Tenant Termination Election Notice; provided, however, that the Tenant Termination Election Date shall not occur until the following conditions are met: (i) no Event of Default for any nonpayment of Rent shall
have occurred and be continuing, (ii) Tenant has paid the Tenant Termination Fee (as hereinafter defined) not later than thirty (30) days prior to the Tenant Termination Election Date, as well as all other amounts due to Landlord as
provided for in subsection (f) below and (iii) Tenant has substantially complied with the provisions of Sections 28.1(a), (b) and (d). The actual date on which all such conditions have been fulfilled and the
Master Lease has in fact been terminated as to the Nonprofitable Property is hereafter referred to as the “Nonprofitable Property Termination Date.” Tenant shall remain liable to Landlord for the performance of the
obligations set forth in Sections 28.1(c), (e) and (f), which, if not performed prior to the Nonprofitable Property Termination Date, shall be performed as expeditiously as reasonably practicable thereafter, but in no
event later than one-hundred eighty (180) days following the Nonprofitable Property Termination Date (subject to reasonable extensions according to the nature of the work to be performed, further subject to additional reasonable extensions for
delays due to customary acts or occurrences of force majeure), but in any such case subject to Section 1.11(d). Landlord agrees to provide access to the Nonprofitable Property as reasonably necessary for Tenant to satisfy
the obligations set forth in the immediately preceding sentence provided that Landlord has approved the duration and scope of work and Tenant has provided such other information as Landlord may reasonably request. Notwithstanding any provision to
the contrary herein, in no event shall Tenant remove any Alterations which are required pursuant to Legal Requirements or Insurance Requirements. For the avoidance of doubt, as further provided in Section 1.6(k), a Nonprofitable Property
shall remain a Nonprofitable Property for the purposes of termination of the Master Lease with respect thereto notwithstanding any improvement in such property’s EBITDAR following any Tenant Termination Election Notice and prior to the
Nonprofitable Property Termination Date. 
 (c) In addition to all other amounts payable pursuant to this Section 1.6, not later
than thirty (30) days prior to the Nonprofitable Property Termination Date, Tenant shall pay Landlord with respect to each Nonprofitable Property as to which a Tenant Termination Election Notice has been delivered an amount equal to the sum of
the Base Rent (including all increases therein) attributable to such Nonprofitable Property (as calculated in accordance with the “SHC Base Rent Adjustment” as specified in and otherwise as provided in Schedule 2
attached to the Side Letter) plus any payments under the Lands’ End Agreements or the Sears Hometown License Agreement relating to the Nonprofitable Property, in each case that would be payable for

  
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a period (a “Calculation Period”) equal to the lesser of (x) one (1) calendar year and (y) the balance of the then-current Term (excluding unexercised
renewals), in either case starting from the Nonprofitable Property Termination Date, plus all Property Charges and all other Additional Charges attributable to such Nonprofitable Property, including any Lands’ End Space and Sears
Hometown Space, that would be payable during the Calculation Period, which shall be initially determined based on the amount payable during the one (1)-year period immediately preceding the Nonprofitable Property Termination Election Notice, or the
most current available records therefor, subject to final adjustment when actual Property Charges and any other Additional Charges attributable to such Nonprofitable Property that are payable during the Calculation Period are known (collectively,
“Termination Fee”). When the actual amount of such Property Charges and any other Additional Charges has been finally determined for the applicable Calculation Period, Landlord and Tenant shall promptly adjust such amount and
refund or pay any difference to the other. 
 (d) From and after the Nonprofitable Property Termination Date, the Base Rent schedule
attached to the Side Letter as Schedule 2 shall be adjusted downward as provided in Schedule 2 to the Side Letter. Except for such Base Rent adjustment, such termination shall not otherwise affect any other terms or
conditions of this Master Lease with respect to the remainder of the Demised Premises, all of which shall remain in full force and effect. 

(e) Tenant shall not have the right to exercise any termination rights in any one (1) Lease Year with respect to any Nonprofitable
Properties if the effect of such termination would be to reduce the Base Rent (as then in effect from time to time) payable under the Master Lease for the immediately succeeding Lease Year by more than twenty percent (20%) from the Base Rent in
effect on the first day of the then-current Lease Year without giving effect to any reduction in Base Rent since such date as a result of the exercise by Landlord of its rights pursuant to Section 1.7, 1.8 or 1.9 hereof
(“Nonprofitable Property Limitation”); provided, however, that any such Nonprofitable Properties as to which termination of the Master Lease would exceed the Nonprofitable Property Limitation may be carried over
to the next succeeding Lease Year in which such termination would be permitted under the Nonprofitable Property Limitation. 
 (f)
Notwithstanding the foregoing provisions of this Section 1.6, Tenant shall not have the right to exercise any termination right with respect to any Nonprofitable Property if the same would constitute a breach or default under any
Encumbrances; provided, however, that for the purpose of this Section 1.6(f) only the Landlord Mortgage shall not constitute an Encumbrance which would prevent the exercise of such termination right. 

(g) On or before the date which is 30 days prior to the Tenant Termination Election Date, Tenant shall (A) deliver to Landlord an updated
title commitment (“Updated Title Commitment”) with respect to the applicable Nonprofitable Property, and (B) cooperate with Landlord in obtaining (at Landlord’s option) an owner’s and/or lender’s policy of
title insurance (or an endorsement reasonably satisfactory to Landlord with respect to any existing Landlord or Landlord Mortgagee title insurance policy) and an endorsement to any existing Landlord Mortgagee title insurance policy (collectively,
“Current Title Policy”) from a national title insurer selected by Landlord (“Title Insurer”) in reasonable amount as reasonably determined by Landlord or Landlord Mortgagee, committing to insure or
insuring, as the case 

  
 8 

 
may be, Landlord’s fee title (or Landlord’s ground leasehold interest, if any) to the Nonprofitable Property and the lien of the Landlord Mortgage free and clear of all Encumbrances
other than (1) Permitted Encumbrances (except for (a) Permitted Encumbrances in subdivisions (i), (ii), (iv) or (v) of the definition thereof (“Excepted Liens”), and (b) Subleases, Lands’ End
Agreements and the Sears Hometown License Agreement); (2) any other Encumbrances suffered or created by Landlord which either are not otherwise Tenant’s obligations or a result of Landlord performing Tenant’s obligations under this
Master Lease (“Landlord Encumbrances”); or (3) any Excepted Liens to the extent Tenant deposits Cash or other security satisfactory to Landlord, Landlord’s Mortgagee or the Title Insurer in an amount equal to not
less than one hundred twenty percent (120%), or such other amount reasonably required by the Title Insurer, of the amount of all such Liens as security for the payment and discharge of such Liens, or Tenant bonds the same in accordance with
applicable Legal Requirements (“Security for Excepted Liens”); provided, however, that in the event the Security for Excepted Liens is inadequate to satisfy all Excepted Liens (including all reasonable costs and
expenses of satisfaction, including reasonable attorneys’ fees), Tenant shall remain liable for such payment and discharge of all Excepted Liens. Upon satisfaction in full of all such Excepted Liens, any remaining balance (if any) of the
Security for Excepted Liens shall be returned to Tenant without interest. Without limiting the foregoing, Tenant shall execute, acknowledge and deliver all affidavits and other documentation which the Title Insurer may reasonably require from Tenant
in accordance with the Title Insurer’s customary practice. 
 (h) Tenant hereby agrees to pay, without duplication, all reasonable,
documented out-of-pocket expenses of Landlord and Landlord Mortgagee (or any of their respective Affiliates) in connection with any actions taken pursuant to this Section 1.6, including, without limitation, reasonable costs incurred by
Landlord or Landlord Mortgagee of the following nature: audits; travel; accounting services; environmental and engineering reports (limited to one consultant); property evaluations (limited to one consultant); Updated Title Commitment and all title
reports and fees and expenses of Title Insurer (other than the title premiums (including endorsements) for the Current Title Policy); surveys; preparation, negotiation, execution and delivery of documents; attorneys’ fees and expenses of
Landlord and Landlord Mortgagee; transfer, transfer gains, intangibles and other recording taxes; title insurance; and any amendment to any memorandum of lease, lease termination agreement, mortgage amendments and other documents reasonably
requested by Landlord, any Landlord Mortgagee or the Title Insurer (and Tenant agrees to promptly execute, acknowledge and deliver the same), and document recordings and filings and fees and taxes in accordance therewith, but expressly excluding all
costs and expenses of reletting or future development of such Nonprofitable Property (collectively, “Transaction Expenses”), provided that such Transaction Expenses shall not exceed $10,000 with respect to any individual
Demised Premises. 
 (i) On or before the Tenant Termination Election Date if required by Landlord, Tenant shall cause each Lease Guarantor
to execute, acknowledge and deliver to Landlord a Guaranty Amendment with respect to the remainder of the Demised Premises. 
 (j) After
receipt of the Tenant Termination Election Notice and the Termination Fee, and subject to satisfaction of all conditions in this Section 1.6, then upon the Nonprofitable Property Termination Date, this Master Lease shall terminate as
aforesaid with respect to the Nonprofitable Property only, and Tenant and Lease Guarantor shall be released 

  
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from all further liabilities with respect to the Nonprofitable Property only, which first arise or accrue after the Nonprofitable Property Termination Date, subject to all obligations of Tenant
and Lease Guarantor which survive expiration and termination of the Master Lease. 
 (k) For the avoidance of doubt, if the Master Lease
cannot be terminated with respect to any Nonprofitable Property in any Lease Year solely because of the application of the Nonprofitable Property Limitation, such Nonprofitable Property shall remain a Nonprofitable Property and shall continue to
qualify as a Nonprofitable Property for purposes of future termination (regardless of future Store operations and without any updating or further certification of the original financial data or any subsequent data establishing its qualification as a
Nonprofitable Property), and shall be entitled to the benefit of a Master Lease termination in any succeeding Lease Year (subject to the Nonprofitable Property Limitation applicable to such Succeeding Lease Year), such termination to occur (at
Tenant’s election) at such time as the Nonprofitable Property Limitation permits such termination upon not less than ninety (90) days’ Notice by Tenant. 

1.7 Recapture Space. In addition to and separate from any potential Nonprofitable Property, Tenant acknowledges and agrees that
as of the date hereof each Demised Premises contains space within each Store as presently constituted which is, and/or may become, excess for the efficient operation of each Store and that may be recaptured by Landlord in its sole discretion. To
optimize the utilization of any excess space, thereby increasing its rental value to Landlord, such space may be severed from this Master Lease on the terms and conditions herein. For the avoidance of doubt, for the purpose of this
Section 1.7 the term “Store” shall expressly exclude all Additional Recapture Space. Accordingly, Landlord and Tenant further agree as follows: 

(a) With respect to each Demised Premises, subject to the further provisions of this Section 1.7, it is the understanding and
intention of the parties that at the election of Landlord the space in each Store may be physically separated into two (2) separate premises consisting of, (i) the space in which the Tenant presently intends to continue to occupy and
maintain retail business operations as a Store with a reduced footprint (the aggregate amount thereof, “Tenant Retained Space”), and (ii) the remainder of the space (the “Recapture Space”) which
is currently occupied by the respective Store (and which is not subject to any Lease as of the date hereof) and which may be recaptured by Landlord. Subject to the further provisions hereof, the aggregate Recapture Space shall consist generally of
approximately fifty percent (50%) of the total Gross Leasable Square Footage of each Store (excluding from this calculation all Additional Recapture Space and all space which is subject to a Lease as of the date hereof), all or a portion of
which shall be available for recapture by Landlord over time for its sole and exclusive use and benefit as hereinafter set forth; provided, however, that in no event shall the Tenant Retained Space at any particular Demised Premises
comprise less than an aggregate of forty thousand (40,000) square feet of Gross Leasable Square Footage; provided further, however, the Gross Leasable Square Footage of any interior SAC must either be recaptured in its
entirety by Landlord, or shall be excluded from the computation of 40,000 square foot minimum; provided, further, however, that with respect to Lands’ End Space which is in excess of approximately twelve thousand
(12,000) Gross Leasable Square Footage in any one (1) Demised Premises, such Gross Leasable Square Footage will be included in the calculation of (and may potentially reduce) the amount of the Recapture Space. By way of example only:
(i) if Tenant is presently operating in eighty percent (80%) of the space in a Sears 

  
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Store (excluding any Additional Recapture Space) and twenty percent (20%) of the space is subject to a Lease as of the date hereof, the aggregate amount of Recapture Space shall consist of
approximately forty percent (40%) of the space in the Sears Store (subject to the forty thousand (40,000) square-foot minimum for the Tenant Retained Space); and (ii) if a Sears Store contains one hundred thousand (100,000) Gross
Leasable Square Footage and there is a Lands’ End Space of twenty thousand (20,000) Gross Leasable Square Footage, Landlord can recapture up to forty thousand (40,000) Gross Leasable Square Footage (50% of 80,000 Gross Leasable Square
Footage). 
 (b) It is the understanding and intention of the parties that the following general principles shall govern such separation and
recapture: taking into account all separations and divisions previously made in connection with all Leases as of the date of this Master Lease, the separation and division of any Store shall be accomplished such that the Tenant Retained Space as
constituted from time to time, shall (i) be reasonably functional for continued use by the Kmart Tenant or Sears Tenant, as applicable, for retail operations as such operations were constituted immediately prior to the separation and recapture
(excluding any occupancy or operations under any Subleases in the Tenant Retained Space); (ii) substantially comparable in size, location and utility, including exterior or mall access, windows, frontage and loading docks, and not materially
disadvantaged, in comparison with the Recapture Space (for the avoidance of doubt, if Landlord recaptures portions of the Recapture Space in a series of multiple recaptures, each recapture shall result in the Tenant Retained Space from time to time
having the foregoing attributes); (iii) contain or have access to certain Exclusive Store Areas which shall be designated as Common Areas on the Final Recapture Plans, which (A) are reasonably necessary or useful for the commercially
viable use, operation and occupancy of the Recapture Space and the Tenant Retained Space, and (B) will not materially interfere with Tenant’s continued use and operation of the Tenant Retained Space; (iv) comply with all Legal
Requirements; including those of the ADA (other than preexisting conditions or by reason of Tenant’s Acts) as hereinafter defined); (v) reasonably accommodate Tenant’s needs with respect to the preparations for and implementation of
Tenant’s relocation in the Tenant Retained Space; including without limitation minimization to the extent commercially reasonably practicable of disruption to Tenant’s retail operations (including with respect to multiple recaptures by
Landlord of portions of the Recapture Space); and (vi) are physically separate and secure from Landlord’s or any third-party tenant’s operations, other than shared Exclusive Store Areas (“Division Principles”).
Consistent with the Division Principles and subject to the further provisions of this Section 1.7, the Parties agree to work together cooperatively and in good faith to minimize to the extent commercially reasonable the costs of the
Recapture Separation Work, including the cost of relocating Tenant, Lands’ End, Sears Hometown and Tenant’s occupants under the Subleases in a commercially reasonable manner. 

(c) The parties have attached as Schedule 1.7(c) to the Side Letter a set of initial, incomplete, preliminary conceptual and schematic
plans (“Preliminary Recapture Plans”) for each of the Stores (except for the 100% Recapture Property) which roughly outline the Recapture Space and the Tenant Retained Space, which shall be completed and further developed and
refined by the Parties in accordance with the Division Principles within ninety (90) days after the Commencement Date; provided, however, that due to the particular circumstances and requirements of the individual spaces as
generally shown thereon, including configurations with respect to common areas and adjacent malls, it is understood and agreed that 

  
 11 

 
the Preliminary Recapture Plans will require further notes, annotations and changes, including without limitation those which solve for particular issues of sharing window space/frontage, access,
loading docks and the like in which there may be slight variations from the approximate fifty percent (50%) recapture concept as provided above. The Parties intend that the Preliminary Recapture Plans shall be subject to written changes from
time to time as shall be negotiated reasonably and in good faith by the Parties, including such additional notes, annotations and changes and identification of additional Common Areas which shall be available for the shared use by the Tenant
Retained Space (and all third-party Lease improvements), and the Recapture Space, and generally identifying and describing the Recapture Separation Work and promptly upon the execution of this Master Lease the Parties shall continue to work together
expeditiously, continuously and in good faith to further develop and refine the Preliminary Recapture Plans and prepare and implement final plans for such physical separations in accordance with such Division Principles with respect to all Stores
(such final plans as mutually agreed to in writing by the Parties, the “Final Recapture Plans”). If and to the extent the Parties determine after the Commencement Date that Preliminary Recapture Plans and Final Recapture
Plans are necessary for any or all of the 100% Recapture Property, the Parties shall agree on the same in good faith in accordance with the Division Principles. Each Recapture Notice shall contain Landlord’s proposal for further refinements of
the Preliminary Recapture Plans (including designation of Exclusive Store Areas as Common Areas), and the configuration, separation and division of the subject Recapture Space and the Tenant Retained Space, and Landlord and Tenant shall meet and
confer from time to time as necessary or desirable to discuss Landlord’s proposal (which shall reflect the Parties’ prior discussions to the extent reasonably practicable) and the Parties shall use all good faith efforts to agree on the
Final Recapture Plans for such configuration, separation and division as soon as reasonably practicable after the date hereof. Without limiting the foregoing, the work to be performed by Landlord to effectuate the separation and recapture of any
Demised Premises pursuant to this Section 1.7 shall include the following: 
  

	 	•	 	Construct the demising wall separating the Recapture Space and the Tenant Retained Space; 

  

	 	•	 	Separate the HVAC and utilities so that the Tenant Retained Space operates on existing stand-alone facilities after the separation of such Demised Premises (including separate meters); 

 

	 	•	 	Construct an exterior entrance for the Tenant Retained Space if, and only if, the Tenant Retained Space is left without an exterior entrance as a result of the layout/design of the separation, subject to full compliance
with ADA and all other Legal Requirements, or as required by Subleases existing as of the Commencement Date; 

  

	 	•	 	Construct new vertical transportation for the Tenant Retained Space if, and only if, the Tenant Retained Space is located on two (2) floors and is left without any vertical transportation as a result of the
layout/design of the separation, subject to full compliance with ADA and all other Legal Requirements; 

  
 12 

	 	•	 	Construct new restrooms for the Tenant Retained Space if, and only if, the Tenant Retained Space is left without any restrooms (or insufficient restrooms to satisfy municipal code requirements) as a result of the
layout/design of the Recapture Separation Work, subject to full compliance with ADA and all other Legal Requirements; and 

  

	 	•	 	Perform asbestos and other environmental remediation directly caused by the Recapture Separation Work, except to the extent expressly provided on Schedule 20.3 to the Side Letter. 

Notwithstanding the foregoing, Landlord shall have no obligation to “modernize” or otherwise to do any work in connection with the Tenant Retained
Space to a higher standard than the standard of the improvements and finish work in the interior of the Retained Space existing as of the Commencement Date (including with respect to HVAC and utilities), subject to any Upgrades requested by Tenant
as provided below at Tenant’s sole cost and expense; provided, however, that all entrances, exits and exterior facades, treatments, signage and windows for the Tenant Retained Space and Recapture Space shall be harmonious in
style, and consistent in general treatment and overall aesthetics. 
 (d) Landlord shall have the right in its sole discretion, at any time
and from time to time upon not less than one hundred eighty (180) days’ Notice to Tenant (the “Recapture Notice,” a form of which is attached hereto as Schedule 1.7(d), which shall include a copy of
the title report referred to below), subject to the further provisions of Section 1.7(j)(vi) to terminate this Master Lease with respect to the whole of the Recapture Space with respect to a particular Demised Premises or any portion
thereof, on a Property by Property basis as identified in the Recapture Notice, on the earlier of (i) the date (“Proposed Recapture Date”) set forth in the Recapture Notice and (ii) the date (“Tenant
Recapture Termination Date”) set forth in a Notice from Tenant after receipt of the Recapture Notice (“Tenant Recapture Termination Notice”) given not later than sixty (60) days after receipt of the
Recapture Notice, which Tenant Recapture Termination Date shall be not less than ninety (90) days after receipt of the Recapture Notice. The date for the conveyance of the Recapture Space and the termination of the Master Lease with respect
thereto shall occur on the earlier of (A) the Proposed Recapture Date, and (B) any Tenant Recapture Termination Date, and is referred to as the “Actual Recapture Date.” On or before the Actual Recapture Date, Tenant
shall have substantially complied with the provisions of Sections 28.1(a), (b) and (d). Tenant shall remain liable to Landlord for the performance of all unperformed obligations set forth in Article XXVIII,
which shall be performed as expeditiously as possible following the Actual Recapture Date, but in no event later than one hundred eighty (180) days following the Actual Recapture Date (subject to reasonable extensions according to the nature of
the work to be performed, further subject to additional reasonable extensions for delays due to customary acts or occurrences of force majeure). Landlord agrees to provide access to the Recapture Space as reasonably necessary for
Tenant to satisfy the obligations set forth in the immediately preceding sentence provided that Landlord has approved the duration and scope of Tenant’s work and Tenant has provided such other information as Landlord may reasonably request.
Tenant shall avoid any interference with the Recapture Separation Work when accessing the Recapture Space following the Actual Recapture Date in accordance with this subsection (d). Landlord shall, at its sole cost and expense, provide
removable, temporary partitions or screens between the Tenant Retained Space and the 

  
 13 

 
Recapture Space during the performance of the Recapture Separation Work. Notwithstanding any provision to the contrary herein, Landlord shall not have the right to recapture all or substantially
all of the Recapture Space at more than fifty (50) of the individual Demised Premises in any one (1) Lease Year. In no event shall Landlord remove any Alterations which are required pursuant to Legal Requirements or Insurance Requirements.

 (e) Landlord shall order a title report, at Tenant’s sole cost and expense, with respect to the Property in question from the Title
Insurer which confirms that the Property is, and Tenant shall convey the Recapture Space, on the Actual Recapture Date, free and clear of all Encumbrances, in the same manner and subject to the requirements as set forth in Section 1.6(g)
for the clearance of title with respect to a Nonprofitable Property. Landlord shall provide a copy of the title report to Tenant with the Recapture Notice, and Tenant shall reimburse Landlord for the cost of such title report within fifteen
(15) days of receipt of an invoice from Landlord therefor. 
 (f) Tenant shall execute, acknowledge and deliver (without cost or
expense to Landlord, other than Tenant’s reasonable, documented out-of-pocket expenses, including reasonable attorneys’ fees and expenses) to Landlord all instruments in recordable form (including assignments, bills of sale, memoranda of
termination of lease and quitclaim deeds) as may be reasonably required (and prepared) by Landlord or such Title Insurer to confirm such termination of the Master Lease with respect to, and Landlord’s title to, the Recapture Space and all
Leased Improvements and Fixtures comprising the same and all reasonable requests with respect to any Landlord Mortgage. Except by reason of Tenant’s Acts, and subject to Tenant’s obligations pursuant to Section 1.7(e), and
further subject to the provisions hereof with respect to the Recapture Separation Work, Landlord shall reimburse Tenant for its reasonable, documented out-of-pocket costs and expenses (including reasonable attorneys’ fees and expenses) with
respect to the actions required to be taken by Tenant pursuant to this Section 1.7 (other than as provided in Section 1.7(e)). 

(g) At Landlord’s request and at its expense, Tenant agrees to reasonably cooperate with Landlord in obtaining a Current Title Policy
(including with respect to any Landlord Mortgage) with respect to the Recapture Space, including executing, acknowledging and delivering such leasehold affidavits and documents as any Title Insurer may reasonably request. Except for Tenant’s
Obligation in Section 1.7(e), the cost of all Transaction Expenses shall be borne by Landlord. 
 (h) Subject to the further
provisions hereof, on the Actual Recapture Date, the Recapture Space with respect to the applicable Store shall automatically be severed and separated from this Master Lease and this Master Lease shall automatically terminate with respect thereto as
if the Actual Recapture Date were the date set forth for the expiration of the Term as to such space, without otherwise affecting any other terms and conditions of this Master Lease with respect to the remainder of the Demised Premises, all of which
shall remain in full force and effect, and Tenant and Lease Guarantor shall be released from all further liabilities with respect to the Recapture Space only, which first arise or accrue after the Actual Recapture Date subject to all obligations of
Tenant which survive expiration or termination of the Master Lease; provided, however, that from and after the Actual Recapture Date with respect to any Recapture Space, the Base Rent shall be adjusted downward in accordance with the
“SHC Base 

  
 14 

 
Rent Adjustment” as specified in and otherwise as provided in Schedule 2 to the Side Letter, and all other charges shall be adjusted downward in accordance with, and Tenant
shall pay only, Tenant’s Proportionate Share of all Property Charges, in accordance with the Recapture Notice (subject to and provided that, pending resolution of any Tenant’s disagreement (if any) with respect thereto as provided
in Sections 1.7(j)(vi) and 1.7(j)(vii). 
 (i) On or before the Actual Recapture Date, if requested by Landlord, Tenant
shall cause Lease Guarantors to execute, acknowledge and deliver to Landlord a Guaranty Amendment with respect to the remainder of the Demised Premises. 

(j) From and after the date hereof and as may be required from time to time, and continuing after any Recapture Notice as may be required,
Tenant and Landlord shall continue to cooperate in good faith to agree on, and to implement as soon as practicable thereafter, plans, specifications, processes and agreements (including applications for all required permits) to physically separate
and divide the Recapture Space from the Tenant Retained Space, including separate entrances, exits and loading docks as Landlord or Tenant may reasonably require (“Recapture Separation Work”), and providing for
(A) easements and other agreements for ingress, egress and access which are useful or necessary between said spaces, and the spaces occupied pursuant to the Leases, (B) easements and other agreements for sharing building services and
facilities, building service equipment, mechanical rooms, stockrooms, elevators, escalators and other Fixtures, as appropriate, including all Exclusive Store Areas which are included in Common Areas, and (C) other joint arrangements as
necessary or desirable in the reasonable and good faith judgment of the Parties to ensure the harmonious operation of the Tenant Retained Space and the Recapture Space, and all space occupied pursuant to the Leases, all in accordance with the
Division Principles. 
 (i) Landlord shall select, in full consultation with Tenant, all architects, engineers, contractors
and vendors (collectively, “Approved Vendors”) for, and shall bear all costs and expenses of, all of the foregoing and all other costs and expenses of the Recapture Separation Work, including without limitation
(A) compliance with all Legal Requirements (including ADA and all new requirements of building, fire and other codes which may become applicable to any previously “grandfathered” work of construction in the Demised Premises),
(B) customary insurance and all costs of asbestos remediation (including any disturbance or removal of asbestos containing materials not otherwise requiring remediation but for the work) and other environmental remediation directly caused by
the Recapture Separation Work (but expressly excluding all environmental remediation required (I) with respect to Known Environmental Problems or other violations of Environmental Laws which exist on the Commencement Date or at any time during
the Term (including those which become known in the course of the work) in the Tenant Retained Space or the Recapture Space, (II) in connection with the Tenant Retained Space which is not directly caused by the Recapture Separation Work,
(III) in connection with all other improvements and work unrelated to the Recapture Separation Work, which Tenant performs within the Tenant Retained Space, or (IV) by Tenant’s violation of any Environmental Laws during the Term), and
(C) to the extent not paid by Landlord, reimbursement of costs related to Tenant’s direct physical separation and relocation (including relocation of space related to 

  
 15 

 
Subleases and all Lands’ End Space and Sears Hometown Space that are located within the Recapture Space) with respect to the Tenant Retained Space incurred and paid by Tenant after the
Recapture Notice. Except as expressly set forth in this Section 1.7, all Recapture Separation Work shall be performed at the sole cost and expense of Landlord; 

(ii) All Recapture Separation Work shall be done in a good and workmanlike manner with all new materials and substantially in
accordance with the General Requirements and Conditions and Construction Procedures on Schedule 1.7(j)(ii) attached hereto. The Recapture Separation Work shall include installation of a new meter or meters with respect to Utility
Charges for the Recapture Space. 
 (iii) Notwithstanding anything contained herein to the contrary, if, and to the extent
that, Tenant elects to include, in the Tenant Retained Space, as part of the Recapture Separation Work, certain improvements or upgrades to Tenant’s existing Leased Improvements or Fixtures to be retained in the Tenant Retained Space
(“Upgrades”), Landlord shall include such Upgrades in the Recapture Separation Work and Tenant shall be solely responsible to pay all extra or increased costs and expenses directly incurred or fairly allocable to such
Upgrades. No Upgrades shall include any structural changes or Alterations without Landlord’s consent in Landlord’s sole discretion. 

(iv) All Exclusive Store Areas which become a part of the Common Areas shall be used on a nonexclusive basis in common by
Tenant and its Related Users (as hereinafter defined), on the one hand, and Landlord and its Related Users, on the other hand, in a manner so as not to materially interfere with, the use, occupancy or business of each other group of Related Users.

 (v) At Landlord’s request, all Recapture Separation Work shall be scheduled and coordinated with the work of
Landlord and/or any of its tenants in or with respect to the Recapture Space or under the Leases (and Tenant agrees to reasonably cooperate therein). All Recapture Separation Work shall be performed in a manner so as to minimize, to the extent
reasonably practicable, disruption to the business and activities in all spaces affected thereby. Within a reasonable time of Landlord’s request after any Actual Recapture Date, Tenant shall assign to Landlord all of Tenant’s right, title
and interest (if any), without warranty or representation, in and to all warranties, guaranties, permits, plans and specifications in Tenant’s possession at the time of such request, which relate to all Alterations or other work performed by
Tenant from and after the Commencement Date in the Recapture Space; provided, however, that if such Alterations or other work also relate to any Retained Space, Tenant shall retain all nonexclusive rights of use in all such plans and
specifications, and the Parties shall cooperate in good faith to bifurcate such warranties, guaranties and permits to the maximum extent feasible, or otherwise ensure that both Parties have the full benefit of such warranties, guaranties and permits
to their respective spaces. 

  
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 (vi) Landlord shall set forth in the Recapture Notice: (a) a description of
the Tenant Retained Space, (b) the new annual Base Rent, the new Tenant’s Proportionate Share of all Property Charges, and the new monthly Installment Expenses payable by Tenant with respect to the applicable modified Demised Premises,
(c) a revised Schedule 2 to the Side Letter reflecting the applicable adjustments for the applicable modified Demised Premises, and (d) a site plan showing the applicable modified Tenant Retained Space and Recapture Space. If
Tenant disagrees with any of the foregoing items in Landlord’s Recapture Notice, Tenant shall send Landlord a Notice within thirty (30) days of receipt of Landlord’s Recapture Notice setting forth the nature of Tenant’s
disagreement in reasonable detail, and thereafter, the Parties shall confer in good faith and mutually agree on all such items and a written statement thereof. Within thirty (30) days after the Actual Recapture Date, the Parties shall confirm
the same in writing. 
 (vii) All disputes and disagreements between the Parties arising in connection with this
Section 1.7 (including Section 1.7(j)(vi)) shall be resolved in accordance with the alternative dispute resolution provisions in accordance with Article XXIX, provided, however, that if Landlord and
Tenant fail to agree on any Final Recapture Plans and the dispute is submitted for resolution under Article XXIX, then Landlord shall be entitled to proceed with a proposed recapture in accordance with the Preliminary Recapture Plans (as
last modified by mutual agreement of the Parties) so long as the Conciliator or arbitrator, as the case may be, determines that they conform to, and Landlord implements the same in accordance with, the Division Principles. 

(k) Landlord shall not pay any additional fee, compensation or consideration to Tenant for the right to exercise any rights to recapture any
Recapture Space, the consideration therefor having been fully reflected in the Rent and other terms and conditions of this Master Lease and the purchase price for the Demised Premises paid by Landlord pursuant to the Purchase Agreement. 

(l) Notwithstanding any provision to the contrary contained in this Master Lease, Landlord shall indemnify, defend and hold harmless Tenant
with respect to all claims, expenses (including reasonable attorneys’ fees), damages and losses in connection with Landlord’s performance of all Recapture Separation Work (excluding all consequential damages and damages for lost revenues
or profits), other than matters arising out of the negligence or willful misconduct of Tenant or any of Tenant’s Related Users. 

1.8 Landlord’s Termination Right as to Additional Recapture Space. In addition to all other rights of termination and/or
recapture by Landlord herein, Landlord shall have the separate independent option, in its sole discretion, and from time to time during the Term, exercisable from time to time and at any time, to terminate this Master Lease as to one hundred percent
(100%) of any or all Additional Recapture Space as identified by Landlord in the Additional Recapture Space Termination Notice below (“Additional Recapture Space Termination Right”). Landlord shall not pay any additional
fee, compensation or consideration to Tenant to enable exercise of any right to recapture any Additional Recapture Space, the consideration therefor having been fully reflected in the Rent and other terms and conditions of this Master Lease and the
purchase price for the Demised Premises paid by Landlord pursuant to the Purchase Agreement. 

  
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 (a) If Landlord elects to exercise any Additional Recapture Space Termination Right, it shall do
so by giving irrevocable Notice to Tenant (“Additional Recapture Space Termination Notice,” a form of which is attached hereto as Schedule 1.8(a) which shall include a copy of the title report referred to
below) identifying the specific Additional Recapture Space as to which the Master Lease is to be terminated. The date for the conveyance of such Additional Recapture Space and the termination of the Master Lease with respect thereto (the
“Actual Additional Recapture Space Termination Date”) shall occur on the earlier of (i) the date which is not less than ninety (90) nor more than one hundred twenty (120) days after the date of the Additional
Recapture Space Termination Notice and specified therein (“Proposed Additional Recapture Space Date”) and (ii) the date (“Tenant Additional Recapture Space Termination Date”) set forth in a Notice
from Tenant after receipt of the Additional Recapture Space Termination Notice (“Tenant Additional Recapture Space Termination Notice”) given not later than sixty (60) days after receipt of the Additional Recapture Space
Termination Notice, which Tenant Additional Recapture Space Termination Date shall be not less than ninety (90) days after receipt of the Additional Recapture Space Termination Notice. On or before the Actual Additional Recapture Space
Termination Date, Tenant shall have substantially complied with the provisions of Sections 28.1(a), (b) and (d). Tenant shall remain liable to Landlord for the performance of all unperformed obligations set forth in
Article XXVIII and any other provisions of this Section 1.8, which shall be performed as expeditiously as reasonably practicable following the Actual Additional Recapture Space Termination Date, but in no event later than one
hundred eighty (180) days following the Actual Additional Recapture Space Termination Date. Landlord agrees to provide access to the Additional Recapture Space as reasonably necessary for Tenant to satisfy the obligations set forth in the
immediately preceding sentence (subject to reasonable extensions of time according to the nature of the work to be performed, further subject to additional reasonable extensions for delays due to customary acts or occurrences of force
majeure) provided, that Landlord has approved the duration and scope of Tenant’s work and Tenant has provided such other information as Landlord may reasonably request. Tenant shall avoid any interference with the Landlord’s
work when accessing the Additional Recapture Space following the Actual Additional Recapture Space Termination Date in accordance with this subsection (a). Notwithstanding any provision to the contrary herein, in no event shall Tenant remove
any Alterations which are required pursuant to Legal Requirements or Insurance Requirements. 
 (b) On or before the Actual Additional
Recapture Space Termination Date, subject to satisfaction of all conditions in this Section 1.8: 
 (i) Landlord
shall order a title report, at Tenant’s sole cost and expense, with respect to the Property in question from the Title Insurer which confirms that the Property is, and Tenant shall convey the Additional Recapture Space, on the Actual Additional
Recapture Space Termination Date, free and clear of all Encumbrances, in the same manner and subject to the requirements as set forth in Section 1.6(g) for the clearance of title with respect to a Nonprofitable Property. Landlord shall
provide a copy of the title report to Tenant with the Additional Recapture Space Termination Notice, and Tenant shall reimburse Landlord for the cost of such title report within fifteen (15) days of receipt of an invoice from Landlord therefor.

  
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 (ii) Tenant shall execute, acknowledge and deliver (without cost or expense to
Landlord, other than Tenant’s reasonable, documented out-of-pocket expenses, including reasonable attorneys’ fees and expenses) all title affidavits and documents reasonably requested by Title Insurer to issue to Landlord and any Landlord
Mortgagee a Current Title Policy, including all instruments in recordable form (including assignments, bills of sale, memoranda of termination of lease and quitclaim deeds) as may be requested by Landlord or such Title Insurer, to confirm such
termination of the Master Lease and Landlord’s title to the Additional Recapture Space and all Leased Improvements and Fixtures comprising the same. Except for Tenant’s obligations in Section 1.8(b)(i), Landlord shall be
responsible for all costs and expenses in connection with the conveyance of the Additional Recapture Space, including those similar to the Transaction Expenses (as and to the extent applicable), and Landlord shall reimburse Tenant for its reasonable
documented out-of-pocket costs and expenses (including reasonable attorneys’ fees and expenses) with respect thereto the actions required to be taken by Tenant in this Section 1.8. 

(iii) On the Actual Additional Recapture Space Termination Date, upon the conveyance of the Additional Recapture Space to
Landlord, the Additional Recapture Space shall automatically be severed and separated from this Master Lease, and this Master Lease shall automatically terminate with respect to the Additional Recapture Space, and the Master Lease shall remain
unmodified and in full force and effect with respect to the remainder of the Demised Premises; provided, however, that from and after such date, the Base Rent shall be adjusted downward in accordance with the “SHC Base Rent
Adjustment” as specified in and otherwise as provided in Schedule 2 to the Side Letter and all Property Charges and other charges shall be adjusted in the same manner as provided in Section 1.7(h). Except for such Base
Rent adjustment, such termination shall not otherwise affect any other terms or conditions of this Master Lease with respect to the remainder of the Demised Premises, all of which shall remain in full force and effect, subject to all obligations of
Tenant which survive termination of the Master Lease. On the Actual Additional Recapture Space Termination Date, Tenant shall pay all Base Rent and Additional Charges related to the applicable Additional Recapture Space which are due and payable
under the Master Lease through the date of such conveyance, and the Parties shall prorate and adjust the same for any amounts which may have been prepaid or underpaid by Tenant, and shall finally adjust any amounts not yet known or ascertainable
promptly after they have been determined; provided that, on the first Payment Date after the Actual Recapture Date and thereafter until and unless Tenant receives a Landlord’s Notice in Section 1.8(b)(vi), Tenant shall make
the foregoing payments in an amount reasonably calculated by Tenant in good faith in accordance with the provisions of this Master Lease; provided further that, at such time as Landlord provides such Notice, Tenant shall pay in accordance
with such Notice pending resolution of any disagreement (if any) with respect thereto as provided in Sections 1.8(b)(vi) and 1.8(b)(vii). 

  
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 (iv) Landlord shall be solely responsible for all costs and expenses incurred in
the recapture of all Additional Recapture Space, including the recapture and separation of any Appendage SAC from the remainder of the Store, together with all ancillary separation costs and expenses with respect to all facilities as are in place
immediately prior to the recapture and separation, including installation of separate meters for utilities which are not currently separately metered (as and to the extent commercially reasonably practicable under the circumstances), and all fiber
optics, cables and other equipment and systems which also serve the Stores. Notwithstanding any provision to the contrary contained in this Master Lease, Landlord shall indemnify and hold harmless Tenant with respect to all claims, expenses
(including reasonable attorneys’ fees and expenses), damages and losses in connection with Landlord’s performance of all recapture and separation work with respect to the Additional Recapture Space (excluding all consequential damages and
damages for lost revenues or profits), other than matters arising out of the negligence or willful misconduct of Tenant or Tenant’s Related Users. 

(v) If required by Landlord, Tenant shall cause the Lease Guarantors to execute, acknowledge and deliver to Landlord a
Guaranty Amendment with respect to the remainder of the Demised Premises. 
 (vi) Landlord shall set forth in the Additional
Recapture Space Termination Notice: (a) a description of the Tenant Retained Space, (b) the new annual Base Rent and Tenant’s Proportionate Share of all Property Charges, and the new monthly Installment Expenses payable by Tenant with
respect to the applicable modified Demised Premises, (c) a revised Schedule 2 to the Side Letter reflecting the applicable adjustments for the applicable modified Demised Premises, and (d) a site plan showing the applicable modified
Tenant’s retained space and the Additional Recapture Space. If Tenant disagrees with any of the items in Landlord’s notice, the Parties shall confer in good faith and mutually agree on all such items and a written statement thereof. Within
thirty (30) days after the Actual Additional Recapture Space Termination Date, the Parties shall confirm the same in writing. 

(vii) All disputes and disagreements between the Parties arising in connection with this Section 1.8 (including
Section 1.8(b)(vi)) shall be resolved in accordance with the alternative dispute resolution provisions in accordance with Article XXIX. 

  
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 1.9 Landlord’s Termination Right as to 100% Recapture Property. Landlord shall
have the several independent options, in its sole discretion, and from time to time during the Term, exercisable at any time to buy out Tenant’s entire leasehold interest in and to terminate this Master Lease as to any or all of the Demised
Premises which are listed on Schedule 1.9 attached to the Side Letter (each, a “100% Recapture Property,” and collectively, the “100% Recapture Properties,” and such right, a
“Landlord 100% Recapture Property Termination Right”), as follows: 
 If Landlord elects to exercise any Landlord 100% Recapture
Property Termination Right, it shall do so by giving irrevocable Notice to Tenant (“100% Recapture Property Termination Notice,” which shall include a copy of the title report referred to below) identifying the specific 100%
Recapture Property as to which the Master Lease is to be terminated, and at the election of Landlord, may include the Tenant ROFO Notice referred to below. The 100% Recapture Property Termination Notice shall confirm that the entire 100% Recapture
Property Termination Fee (as provided below) has been deposited in cash in escrow by Landlord with an escrow agent mutually reasonably acceptable to Landlord and Tenant (“100% Recapture Property Termination Fee Escrow”),
which escrow shall provide that such funds shall be released to Tenant automatically on the Actual 100% Property Recapture Termination Date. Such deposit in escrow shall be a condition precedent to the effectiveness of any 100% Recapture Property
Termination Notice, which shall otherwise be null and void ab initio. 
 The date for the conveyance of the applicable 100% Recapture Property and the
termination of the Master Lease with respect thereto (the “Actual 100% Property Recapture Termination Date”) shall occur on the earlier of (i) the date which is not less than one hundred twenty (120) nor more than
one hundred fifty (150) days after the date of the 100% Recapture Property Termination Notice and specified therein (“Proposed 100% Recapture Property Date”) and (ii) the date (“Tenant 100% Property
Recapture Termination Date”) set forth in a Notice from Tenant after receipt of the 100% Recapture Notice (“Tenant 100% Property Recapture Termination Notice”) given not later than sixty (60) days after
receipt of the 100% Recapture Notice, which Tenant 100% Recapture Property Termination Date shall be not less than (90) days after receipt of the 100% Recapture Notice. On or before the Actual 100% Property Recapture Termination Date, Tenant
shall have substantially complied with the provisions of Sections 28.1(a), (b) and (d). Tenant shall remain liable to Landlord for the performance of all unperformed obligations set forth in Article XXVIII,
which shall be performed as expeditiously as reasonably practicable following the Actual 100% Property Recapture Termination Date, but in no event later than one hundred eighty (180) days following the Actual 100% Property Recapture Termination
Date (subject to reasonable extensions of time according to the nature of the work to be performed, further subject to additional reasonable extensions for delays due to customary acts or occurrences of Force Majeure). Landlord agrees
to provide access to the 100% Recapture Property as reasonably necessary for Tenant to satisfy the obligations set forth in the immediately preceding sentence provided that Landlord has approved the duration and scope of Tenant’s work and
Tenant has provided such other information as Landlord may reasonably request. Tenant shall avoid any interference with the Landlord’s work when accessing the 100% Property Recapture following the Actual 100% Property Recapture Termination Date
in accordance with this subsection (a). Notwithstanding any provision to the contrary herein, in no event shall Tenant remove any Alterations which are required pursuant to Legal Requirements or Insurance Requirements. 

  
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 (a) On or before the Actual 100% Property Recapture Termination Date, subject to satisfaction of
all conditions in this Section 1.9: 
 (i) Landlord shall order a title report, at Tenant’s sole cost and
expense, with respect to the Property in question from the Title Insurer which confirms that the Property is, and Tenant shall convey the 100% Recapture Property, on the Actual 100% Property Recapture Termination Date, free and clear of all
Encumbrances, in the same manner and subject to the requirements as set forth in Section 1.6(g) for the clearance of title with respect to a Nonprofitable Property. Landlord shall provide a copy of the title report to Tenant with the
Recapture Space Termination Notice, and Tenant shall reimburse Landlord for the cost of such title report within fifteen (15) days of receipt of an invoice from Landlord therefor. At Landlord’s request and at its expense, Tenant agrees to
reasonably cooperate with Landlord in obtaining a Current Title Policy (including with respect to any Landlord Mortgage) with respect to the 100% Recapture Property, including executing, acknowledging and delivering such leasehold affidavits and
documents as any Title Insurer may reasonably request. The cost of all Transaction Expenses shall be borne by Landlord. 

(ii) Tenant shall execute, acknowledge and deliver (without cost or expense to Landlord, other than Tenant’s reasonable,
documented out-of-pocket expenses, including reasonable attorneys’ fees and expenses) all title affidavits and documents reasonably requested by Title Insurer to issue to Landlord and any Landlord Mortgagee a Current Title Policy, including all
instruments in recordable form (including assignments, bills of sale, memoranda of termination of lease and quitclaim deeds) as may be requested by Landlord or such Title Insurer, to confirm such termination of the Master Lease and Landlord’s
title to the 100% Recapture Property and all Leased Improvements and Fixtures comprising the same. Except for Tenant’s obligations in Section 1.9(a)(i), Landlord shall be responsible for all costs and expenses in connection with the
conveyance of the Additional Recapture Space, including those similar to the Transaction Expenses (as and to the extent applicable), and Landlord shall reimburse Tenant for its reasonable documented out-of-pocket costs and expenses (including
reasonable attorneys’ fees and expenses) with respect thereto the actions required to be taken by Tenant in this Section 1.9. 

(iii) On the Actual 100% Property Recapture Termination Date, upon the conveyance of the 100% Recapture Property to Landlord,
the 100% Recapture Property shall automatically be severed and separated from this Master Lease, and this Master Lease shall automatically terminate with respect to the 100% Recapture Property, and the Master Lease shall remain unmodified and in
full force and effect with respect to the remainder of the Demised Premises; provided, however, that from and after such date, the Base Rent shall be adjusted downward in accordance with the “SHC Base Rent Adjustment”
specified in and otherwise as provided in Schedule 2 to the Side Letter. Except for such Base Rent adjustment, such termination shall not otherwise affect any other terms or conditions of this Master Lease with respect to the remainder
of the Demised Premises all of which 

  
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shall remain in full force and effect, subject to all obligations of Tenant which survive termination of the Master Lease. On the Actual 100% Property Recapture Termination Date, Tenant shall pay
all Base Rent and Additional Charges related to the applicable 100% Recapture Property which are due and payable under the Master Lease through the date of such conveyance, and the Parties shall prorate and adjust the same for any amounts which may
have been prepaid or underpaid by Tenant, and shall finally adjust any amounts not yet known or ascertainable promptly after they have been determined. 

(iv) On or before the Actual 100% Property Recapture Termination Date, subject to satisfaction of all conditions in this
Section 1.9, Landlord shall pay to Tenant a termination fee (“100% Recapture Property Termination Fee”) with respect to each 100% Recapture Property an amount equal to the greater of (A) the amount specified
in the applicable column on Schedule 1.9 to the Side Letter and (B) the product of (x) ten (10), multiplied by (y) the EBITDA of the applicable 100% Recapture Property for the twelve (12) months ending on the
last day of the most recently completed fiscal quarter of Tenant’s Parent preceding the 100% Recapture Property Termination Notice attributable to the fifty percent (50%) of space located on the specified 100% Recapture Property which is
not part of the Recapture Space (the parties having separately taken into account the right of Landlord to recapture fifty percent (50%) of the space (i.e., the Recapture Space) at each 100% Recapture Property). For the avoidance of
doubt, for purposes of this Section 1.9(b)(iv) EBITDA shall not include any rent payable by Lands’ End or Sears Hometown or any other Affiliate of Tenant. 

(v) If required by Landlord, Tenant shall cause the Lease Guarantors to execute, acknowledge and deliver to Landlord a
Guaranty Amendment with respect to the remainder of the Demised Premises. 
 (b) In the event of Landlord’s buy-out and subsequent
redevelopment in its sole discretion of any 100% Recapture Property which contains retail use, upon Landlord’s election in its sole discretion to offer for lease and market any portion of the 100% Recapture Property for lease for retail use,
which comprises a space that is suitable for the operation of a Sears or Kmart store, Landlord shall give Tenant written Notice of such space which will be offered for lease (“Offer Space”) on or prior to the Actual 100%
Property Recapture Termination Date, together with an architect’s site plan and rendering in reasonable detail showing the square footage, entrances and exits and all other material elements and features of the Offer Space and the remainder of
the development including parking and other common areas (“Rendering”), and together with such Notice, collectively, “Tenant ROFO Notice”), in which event Tenant shall have the option for a period of
sixty (60) days following the Tenant ROFO Notice (“Offer Period”) to submit a written offer to lease the Offer Space (“Tenant Offer”). Any Tenant’s Offer shall entitle Tenant to an exclusive
negotiating period of thirty (30) days, during which Landlord shall not solicit or consider any other third-party offer for the subject space, so long as the Tenant Offer is made in good faith and generally consistent with market rents at the
time of the offer. In considering any Tenant Offer together with any competing offers (after such thirty (30)-day period of exclusivity), Landlord may take into account each offeror’s proposed base rent (equivalent or similar to Base Rent),
additional 

  
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charges (equivalent or similar to Additional Charges), credit quality, operating experience, tenant mix, intended use and other factors (including prevailing market terms) that are relevant to
Landlord in maximizing value at the subject 100% Recapture Property. If Tenant and Landlord do not reach agreement on and execute a lease, or agree on all material terms and conditions for a lease and execute a binding and enforceable term sheet
(after using reasonable good faith efforts to do so), within the Offer Period, Landlord shall be free to offer and/or lease the Offer Space or any part thereof on such terms as Landlord may determine and Tenant shall not have any other rights in or
to the Offer Space or any part thereof or any other rights in the 100% Recapture Property. Without limiting any other provision of this Section 1.9, Landlord shall have no obligation to redevelop any 100% Recapture Property or to include
any retail space therein or to offer or make available for lease in the first instance any retail space (including space suitable for a Kmart or Sears store) in any redeveloped 100% Recapture Property. 

1.10 Reservation of Rights Concerning Leases and Recapture Space. Subject to the provisions of this Master Lease, the Parties
acknowledge and agree that Landlord (for itself and its authorized agents, representatives, vendors and invitees and guests and tenants, as applicable) retains and reserves all rights of access, ingress and egress in, on, over and through the
Demised Premises for all reasonable purposes except in case of emergencies upon reasonable notice during normal business hours in connection with, and to the fullest extent now or hereafter provided or contemplated pursuant to the terms and
conditions of, (i) the existing Leases, or as may be reasonably useful or necessary for the use and occupancy of the premises under such Leases, (ii) the effectuation or evaluation of any potential recapture or property termination right
provided in accordance with terms of this Master Lease (both before and following delivery of applicable notices relating thereto) and (iii) the exercise of all rights and remedies of Landlord under this Master Lease, including, without
limitation, the following: 
 (a) From and after the Multi-Tenant Occupancy Date only, access, ingress and egress to and from all entrances
and exits to or from each Store during normal business hours, all including any adjacent shopping center, mall, or other third-party property, parking areas or other Common Areas; 

(b) From and after the Multi-Tenant Occupancy Date only, shared utilization of restrooms, stairwells, escalators and elevators, stockrooms,
storage rooms, loading docks and other similar areas and facilities, according to the terms of any Leases, and as may be established by mutual agreement between Landlord and Tenant in connection with any Recapture Space and the Exclusive Store
Areas, and any areas occupied under the Leases; 
 (c) At all times, upon reasonable prior notice to Tenant (except in the case of an
emergency), maintaining, repairing, altering, servicing, adjusting and/or installing mechanical rooms, boiler rooms, telecommunications, HVAC, plumbing, electrical and other facilities and building service equipment, including all pipes, conduits,
wires and other ancillary items in connection with Landlord’s right to perform maintenance and repairs as provided elsewhere in this Master Lease; 

(d) From and after the Multi-Tenant Occupancy Date only, nonexclusive use, in common with Tenant, its authorized contractors, vendors,
invitees and licensees of all parking areas and other Common Areas and public facilities; 

  
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 (e) At all reasonable times upon reasonable notice during normal business hours, as may be
necessary to comply with Landlord’s obligations under any Landlord Mortgage Document; and 
 (f) At all times, general access and right
of entry reasonably necessary for or incidental to the exercise of all rights and remedies of Landlord in connection with the foregoing and otherwise under this Master Lease. 

Landlord shall have the right to grant any of the foregoing rights to its authorized contractors, tenants, vendors, invitees and licensees. Notwithstanding
the foregoing, all rights of access and entry shall be exercised reasonably and in such a manner as not to materially interfere with Tenant’s business operations at the Demised Premises or Tenant’s use of any Common Areas in connection
with its business. 
 1.11 General Provisions. (a) Notwithstanding any provision contained herein to the contrary, with
respect to any Nonprofitable Property, Recapture Space, 100% Recapture Property, Additional Recapture Space or Removal Property as to which this Master Lease is terminated, or any Demised Premises as to which the Master Lease is terminated by reason
of casualty or condemnation in accordance with Article XII (“Article XII Terminated Space”) (and, collectively, “Terminated Space”), from and after the respective date of termination
of the Master Lease with respect thereto, the respective Terminated Space shall no longer be a part of the Demised Premises for any and all purposes under this Master Lease and Tenant and Lease Guarantors shall be released from any and all further
obligations to pay Base Rent and from all further obligations and liabilities under this Master Lease with respect to the Terminated Space which first arise or accrue from and after such termination; provided, however, that Tenant and
Lease Guarantors shall remain obligated to pay and/or perform all such other amounts and obligations which are to be paid and/or performed upon the surrender or termination of the Master Lease with respect to the Terminated Space, or which survive
the expiration or termination of this Master Lease. 
 (b) From and after the conveyance or termination of this Master Lease
with respect to the Recapture Space and/or the Additional Recapture Space, as applicable, Tenant shall pay Tenant’s Proportionate Share of all Property Charges, and the Base Rent pursuant to Schedule 2 to the Side Letter, as
adjusted pursuant to Section 1.7(h), Section 1.8(b)(iii), and/or Section 1.9(b)(iii), as applicable, with respect to the Tenant Retained Space. 

(c) Notwithstanding any provision to the contrary contained in Section 1.6, 1.7, 1.8 or 1.9,
if there shall be an Event of Default which is continuing either on the date of any Tenant Termination Election Date, any Proposed Recapture Date, any Proposed Additional Recapture Date, any Proposed 100% Recapture Property Termination Date,
Nonprofitable Property Termination Date, Actual Recapture Date, Actual Additional Recapture Date, or Actual 100% Property Recapture Termination Date, or any date of any Tenant election to terminate or the actual date of termination with respect to
any Article XII Terminated Space, Landlord may in its sole discretion waive any such Event of Default (and any or all other conditions to the Master Lease termination with respect thereto, as the case may be, of Section 1.6,
1.7, 1.8, 1.9 or Article III which may be dependent on or impacted by such Event of Default) solely with respect to the termination of the Master Lease as to the 

  
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Nonprofitable Property, Recapture Space, Additional Recapture Space or 100% Recapture Property, or Article XII Terminated Space, as the case may be, and Landlord shall have the right
to retain the Termination Fee, Total Destruction Termination Fee and 12-Month Destruction Fee under Article XII (as applicable) and proceed with the termination of the Master Lease with respect to such respective Terminated Space, subject to
and without any prejudice to Landlord’s exercise of all other rights and remedies with respect to such Event of Default, all of which rights and remedies shall be retained unimpaired by Landlord. Without limiting the foregoing, any such waiver
shall apply only to the specific Termination Space involved but no such waiver shall apply to any other Demised Premises. 
 (d)
Notwithstanding any provision of this Master Lease to the contrary, if Tenant does not vacate any (x) Recapture Space on or before the 30th calendar day following the Actual Recapture Date,
(y) Additional Recapture Space on or before the 30th calendar day following the Actual Additional Recapture Space Termination Date, or (z) 100% Recapture Property on or before the 30th calendar day following the Actual 100% Property Recapture Termination Date, then in any such case, until such time as Tenant vacates the applicable Recapture Space, Additional Recapture Space or
100% Recapture Property, as the case may be (the “Holdover Period”): 
 (i) Tenant shall continue to
be fully responsible for the faithful performance of all of the terms set forth in this Master Lease, except Tenant shall pay as additional rent on the first day of each month during the Holdover Period for use and occupancy of the applicable
Recapture Space, Additional Recapture Space and/or 100% Recapture Property (“Holdover Space”) an amount equal to the sum of (x) one and three quarters (1.75) times the Base Rent that would otherwise then be
applicable to the Holdover Space plus (y) Tenant’s Proportionate Share of all Property Charges applicable to the Holdover Space for such period as if this Master Lease had not been terminated or expired with respect to the Holdover Space.

 (ii) Tenant shall occupy the Holdover Space during the Holdover Period in its “as is” condition. Nothing
contained in this Master Lease shall be construed as a consent by Landlord to the possession by Tenant of the Holdover Space during the Holdover Period, and Landlord, upon commencement of the Holdover Period, shall be entitled to the benefits of all
legal remedies that may now be in force or may hereafter be enacted relating to immediate repossession of the Holdover Space by Landlord. 

  
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 1.12 Separation of Leases. (a) From time to time, at the election of Landlord
in its sole discretion, so long as there shall be no material adverse effect on Tenant, Landlord may remove one or more Properties (individually, “Removal Property,” and collectively, “Removal
Properties”) from this Master Lease and place one (1) or more Removal Properties in one (1) or more separate leases with Tenant on terms and conditions substantially similar to, and in any case no less favorable to Tenant
than, those set forth in this Master Lease and as otherwise provided in this Section 1.12 (individually, “New Lease,” and collectively, “New Leases”), for technical or administrative
reasons or to facilitate the sale, financing or other disposition of such Removal Properties, or for another legitimate business purpose of Landlord, all as determined by Landlord in its sole discretion. 

(b) If Landlord elects to so remove any Removal Properties, Landlord shall give Tenant not less than thirty (30) days’ Notice
thereof (a “Removal Notice”), and Tenant shall thereafter, within said thirty (30)-day period, execute, acknowledge and deliver to Landlord (or any new owner of the Removal Properties, as designated by Landlord) at no cost or
expense to Tenant, one (1) or more New Leases with respect to one (1) or more Removal Properties as determined by Landlord effective as of the date set forth in the Removal Notice (“Removal Date”) for the remaining
Term and on substantially the same, and in any case no less favorable to for Tenant than, terms and conditions as this Master Lease, except for appropriate adjustments (including to Exhibits and Schedules), including as follows: 

(i) Base Rent. The initial Base Rent for each Removal Property shall be computed in accordance with
Schedule 2 to the Side Letter with respect to the property release/recapture amount ascribed to such Removal Property under this Master Lease as of the Removal Date and thereafter shall be increased on the same basis as provided
in this Master Lease. 
 (ii) Tenant’s Proportionate Share. Tenant’s Proportionate Share with respect to
each Removal Property shall continue to be calculated in the same manner with respect to such Removal Property as provided in this Master Lease. 

(iii) Liabilities and Obligations. The New Lease shall provide that each tenant and each landlord shall be responsible
for the payment, performance and satisfaction of all of the duties, obligations and liabilities of Tenant and Landlord, respectively, arising under this Master Lease, insofar as they relate to the Removal Property, that were not paid, performed and
satisfied in full prior to the commencement date of the New Lease (and Tenant and Landlord under this Master Lease shall each also remain responsible for the payment, performance and satisfaction of the aforesaid duties, obligations and liabilities
not paid, performed and satisfied in full prior to the commencement date of such New Lease), and shall further provide that the Tenant thereunder shall not be responsible for the payment, performance or satisfaction of any duties, obligations and
liabilities of Tenant under this Master Lease first arising after the Removal Date. 
 (iv) Deletion of Provisions.
At the election of Landlord, any one or more of the provisions of the New Lease pertaining to the REIT status of any 

  
 27 

 
member of Landlord (or any Affiliate of any member of Landlord) shall be deleted. In addition, Landlord may delete and eliminate from such New Lease such provisions herein as it elects, provided
such deletion and elimination do not in any material respect affect any of the obligations, liabilities, rights or remedies of Tenant under such New Lease with respect to the affected Removal Property. 

(v) Amendments to this Lease. Upon execution of such New Lease, and effective as of the Property Removal Date, this
Master Lease shall be deemed to be amended as follows: (i) the Removal Properties shall be excluded from the Demised Premises hereunder; (ii) Base Rent hereunder shall be reduced by the amount of the Base Rent allocable to the Removal
Properties; and (iii) Schedule 2 attached to the Side Letter shall be modified so as to remove the Removal Properties. Such amendments shall occur automatically and without the necessity of any further action by Landlord or
Tenant, but, at Landlord’s election, the same shall be reflected in a formal amendment to this Master Lease, which amendment shall be promptly executed by Tenant. 

(vi) Other Undertakings. Tenant shall take such actions and execute and deliver such documents, including, without
limitation, the New Lease and new or amended Memorandum(s) of Lease and, if requested by Landlord, an amendment to this Master Lease, as are reasonably necessary and appropriate to effectuate fully the provisions and intent of this
Section 1.12(b), and as otherwise are appropriate or as Landlord or any Title Insurer may reasonably request to evidence such removal and new leasing of the Removal Properties, including memoranda of lease with respect to such New Leases
and amendments of all existing memoranda of lease with respect to this Master Lease and an amendment of this Master Lease. 
 (c) Without
limitation of the foregoing, all New Leases shall remain cross-defaulted with this Master Lease unless otherwise required by Landlord; provided, however, that if the landlord under any New Lease shall not be Landlord or an Affiliate of
Landlord, any such New Lease shall not be or remain cross-defaulted with this Master Lease. In all cases, whether or not cross-defaulted with this Master Lease, so long as any Landlord Mortgage shall apply to any Removal Property or New Lease, such
Removal Property and/or New Lease shall continue to be subject either to the existing SNDA with respect to the Master Lease, or subject to a new SNDA to be delivered by Landlord Mortgagee, Landlord and Tenant on substantially the same terms and
conditions as the existing SNDA (having regard to the terms and conditions of the New Lease). 
 (d) To the extent requested by Landlord,
Tenant shall cause Lease Guarantors to execute, acknowledge and deliver a separate New Lease Guaranty with respect to each New Lease and a Guaranty Amendment with respect to this Master Lease the remainder of the Demised Premises. 

(e) For the avoidance of doubt, all costs and expenses relating to the New Leases (including reasonable attorneys’ fees and other
reasonable, documented out-of-pocket costs incurred by Tenant or Lease Guarantor for outside counsel, if any) shall be borne by Landlord, and not Tenant. 

  
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 1.13 Self-Help. Notwithstanding that Landlord may be the direct party to any or all
Operating Agreements and ground leases, before the Multi-Tenant Occupancy Date, Tenant shall continue to be the responsible party for Landlord’s obligations under all Operating Agreements and any ground lease (where applicable) and Tenant shall
comply with all non-monetary terms thereof which are applicable to the Demised Premises and shall pay Tenant’s Proportionate Share of expenses (as set forth in Schedule 2 to the Side Letter) with respect to such Operating
Agreements. Landlord shall use all commercially reasonable efforts to comply or cause the compliance with all terms of the Operating Agreements to the extent applicable to the Common Areas and any portions of the Property leased to third parties
(“Applicable Terms”). In the event Landlord defaults in the performance of any of the Applicable Terms or fails to enforce the obligations of any other obligee under any Operating Agreement with respect to the Applicable
Terms and such default or failure would reasonably be expected to result in a material adverse effect on Tenant or any individual Demised Premises, Tenant may, but shall not be obligated to, after thirty (30) days’ Notice to Landlord of
Tenant’s intention to take such specified action (except in the event of an emergency, defined as a condition presenting an imminent threat of harm to persons and property, in which case no notice shall be required), cure any default by
Landlord under the Operating Agreements with respect to the Applicable Terms and/or enforce, in its own name, the obligations of any other obligor under the Operating Agreements with respect to Applicable Terms (to the extent Landlord would be
permitted to do so, subject to the terms and conditions under the Operating Agreements with respect to Applicable Terms). Notwithstanding anything herein to the contrary (except in the event of an emergency), Tenant’s foregoing right to
exercise self-help with respect to the obligations of any Person under the Operating Agreements with respect to the Applicable Terms shall be tolled during such time that Landlord is using commercially reasonable efforts to enforce such obligations.
Landlord shall, within ten (10) Business Days after receipt of Tenant’s demand and supporting documentation in reasonable detail, reimburse Tenant for the reasonable costs incurred by Tenant in performing any of Landlord’s obligations
under the Operating Agreements or enforcing the obligations of any Person under any Operating Agreements with respect to the Applicable Terms (including reasonable attorneys’ fees and expenses), as to which Tenant has provided such thirty
(30)-day Notice. The foregoing rights of Tenant are referred to as “Self-Help”. 
 ARTICLE II 

DEFINITIONS 
 2.1
Definitions. For all purposes of this Master Lease, except as otherwise expressly provided or unless the context otherwise requires, (i) the terms defined in this Article II have the meanings assigned to them in this
Article and include the plural as well as the singular; (ii) all accounting terms not otherwise defined herein have the meanings assigned to them in accordance with GAAP; (iii) all references in this Master Lease to designated
“Articles,” “Sections” and other subdivisions are to the designated Articles, Sections and other subdivisions of this Master Lease; (iv) the word “including” shall have the same meaning as the phrase
“including, without limitation,” and other similar phrases; (v) the words “herein,” “hereof” and “hereunder” and other words of similar import refer to this Master Lease as a whole and not to any
particular Article, Section or other subdivision; and (vi) for the calculation of any financial ratios or tests referenced 

  
 29 

 
in this Master Lease, this Master Lease, regardless of its treatment under GAAP, shall be deemed to be an operating lease and the Rent payable hereunder shall be treated as an operating expense
and shall not constitute Indebtedness or interest expense. 
 “10-Day Period”: As defined in
Section 29.1(c). 
 “100% Recapture Property” or 100% Recapture Properties”: As
defined in Section 1.9. 
 “100% Recapture Property Termination Fee”: As defined in
Section 1.9(a)(iv). 
 “100% Recapture Property termination Fee Escrow”: As defined in Section
1.9. 
 “100% Recapture Property Termination Notice”: As defined in Section 0. 

“12-Month Destruction”: As defined in Section 12.2(a). 

“12-Month Destruction Fee”: As defined in Section 12.6. 

“AAA”: As defined in Section 29.2(a). 

“Actual 100% Property Recapture Termination Date”: As defined in Section 1.9. 

“Actual Additional Recapture Space Termination Date”: As defined in Section 1.8(a). 

“Actual Recapture Date”: As defined in Section 1.7(d). 

“ADA”: The Federal Americans with Disabilities Act (as amended) and similar Legal Requirements with respect to persons
with disabilities. 
 “Additional Charges”: 100% of the amount, or Tenant’s Proportionate Share, as applicable
as determined in this Master Lease, of all Property Charges, subject to termination of such payments for future Property Charges with respect to all Terminated Space, as provided herein; and all other amounts, sums, charges, liabilities and
obligations which Tenant assumes or agrees to pay or may become liable for under this Master Lease at any time and from time to time, other than Base Rent; provided, however, in no event shall Additional Charges include, nor shall
Tenant be responsible to pay, any costs, expenses, fees or charges under or with respect to (a) any mortgage, deed of trust, lien, charge, pledge, hypothecation, security interest, or other matter whatsoever affecting title to any of the
Demised Premises or any portion thereof or any interest therein (other than Known Environmental Problems or Retail Operations Claims), whether or not of record which was not in existence on the Commencement Date, or thereafter, which was not a
result of Tenant’s Acts or incurred for Tenant’s benefit, (b) any Landlord Mortgage Documents, or (c) any liens, charges or encumbrances suffered or created by Landlord or Landlord’s Related Users (but expressly including
Further Encumbrances); and, in the event of any failure on the part of Tenant to pay any of those items (except where such failure is directly due to the acts or omissions of Landlord or any of Landlord’s tenants), every fine, penalty, interest
and cost which may be added for nonpayment or late payment of such items, 

  
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including, without limitation, all amounts for which Tenant is or may become liable to indemnify Landlord and Indemnified Parties under this Master Lease (including reasonable attorneys’
fees and court costs). All Additional Charges (however denominated) shall be collectible and payable as additional rent under this Master Lease. 

“Additional Recapture Space”: Each Appendage SAC and each Free-Standing SAC, and each so-called “outlot”,
“outparcel” or portion of any parking or Common Area (other than a Free-Standing SAC), whether or not now or hereafter considered as a separate legal or tax parcel, and which is not subject to any Leases (and in respect of any parking or
Common Areas, so long as any such Additional Recapture Space is without any material adverse impact on the retail operations of the applicable Store (as the same is reconfigured and constituted from time to time), including access, egress, parking
and loading docks). 
 “Additional Recapture Space Termination Notice”: As defined in Section 1.8(a).

 “Additional Recapture Space Termination Right”: As defined in Section 1.8. 

“Adverse Impact”: As defined in Section 8.1(b). 

“Affiliate”: When used with respect to any corporation, limited liability company, or partnership, the term
“Affiliate” shall mean any person which, directly or indirectly, controls or is controlled by or is under common control with such corporation, limited liability company or partnership. For the purposes of this definition,
“control” (including the correlative meanings of the terms “controlled by” and “under common control with”), as used with respect to any Person, shall mean the possession, directly or indirectly, of the power to direct
or cause the direction of the management and policies of such Person through the ownership of voting securities, partnership interests or other equity interests. 

“All Risk”: As defined in Section 11.2(a). 

“Alterations”: As defined in Section 8.1. 

“Appendage SAC”: A SAC which is physically attached as an “appendage” to a Store but is not located wholly
within the interior of the Store and which may be physically separated from the Store without any physical relocation of any other retail operations within the Store. 

“Applicable Terms”: As defined in Section 0. 

“Appraiser: As defined in Section 26.1. 

“Approved Vendors”: As defined in Section 1.7(j)(i). 

“Arbitration Rules”: As defined in Section 29.2(a). 

“Article XII Terminated Space”: As defined in Section 1.11(a). 

“Award”: All compensation, sums or anything of value awarded, paid or received on a total or partial Taking. 

  
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 “Base Rent”: 

(a) During the Initial Term and each of the first (1st) and second (2nd) Renewal Terms, the Base Rent shall be as
follows: (i) during the first (1st) Lease Year, the Base Rent shall be an annual amount equal to $134,007,772, adjusted downward from time to time in accordance with the “SHC Base Rent Adjustment” as specified in and otherwise as
provided in Schedule 2 attached to the Side Letter; and (ii) during each Lease Year commencing with the second (2nd) Lease Year, the Base Rent shall be increased by an annual amount equal to two percent (2%), cumulative and
compounded, over the Base Rent for the immediately preceding Lease Year (as so increased). 
 (b) Commencing with the third
(3rd) and any subsequent Renewal Term (if any), the Base Rent shall be an annual amount equal to the greater of (a) the Base Rent for the immediately preceding Lease Year and (b) the Fair Market Rent for the entire Demised Premises,
determined with respect to each such Renewal Term promptly after the delivery of the applicable Renewal Notice. 
 “Business
Day”: Each Monday, Tuesday, Wednesday, Thursday and Friday which is not a day on which national banks in the City of New York, New York, are authorized, or obligated, by law or executive order, to close. 

“Calculation Period”: As defined in Section 1.6(c). 

“CAM Expenses”: As defined in Section 10.2(c)(ii). 

“Cash”: Cash and cash equivalents and all instruments evidencing the same or any right thereto and all proceeds
thereof. 
 “Change of Control”: Except as permitted or required hereunder, (i) the direct or indirect sale of
all or substantially all of the assets of Tenant or Tenant’s Parent, whether held directly or through Subsidiaries, in one transaction or in a series of related transactions (excluding sales to Tenant’s Parent or its Subsidiaries) and
excluding any transaction permitted pursuant to Section 9.3, or (ii) (a) Tenant ceasing to be a wholly owned Subsidiary (directly or indirectly) of Tenant’s Parent or (b) Tenant’s Parent ceasing to control one
hundred percent (100%) of the voting power in the Equity Interests of Tenant. For the avoidance of doubt, subject to compliance with Section 9.3, the transfer of publicly traded Equity Interests of Tenant’s Parent shall not
constitute a Change of Control. 
 “Claim”: As defined in Section 14.12(a). 

“Code”: The Internal Revenue Code of 1986 and, to the extent applicable, the Treasury Regulations promulgated
thereunder, each as amended from time to time. 
 “Commencement Date”: As defined in Section 1.4. 

“Common Areas”: The sidewalks, walkways, alleyways, connecting tunnels, passageways and entranceways to third-party
properties, sidewalks, utility pipes, conduits and lines, service drives, parking aisles, driveways, doorways (other than located in the wall of any 

  
 32 

 
Leased Improvements), and parking lots and parking areas and other external areas which shall exist from time to time on or adjacent to the Properties or Demised Premises, including such areas
which may be available as part of a Shopping Center by the owner thereof or designated as “common areas” or areas for “common use,” by Landlord, Tenant and/or other occupants and/or owners of the Demised Premises or any Recapture
Space, Additional Recapture Space and/or any Shopping Centers, and their respective Related Users, provided, however, that at such time as the Recapture Space or any Additional Recapture Space shall cease to be a portion of the Demised
Premises, the Common Areas shall also include such of the loading docks, elevators, escalators, store rooms, restrooms and other facilities which are, as of the date hereof, located within or exclusively serving the applicable Store
(“Exclusive Store Areas”) as are mutually agreed by the Parties and identified on the Final Recapture Plans for the separation of the Tenant Retained Space and the Recapture Space, subject to all Legal Requirements and
Encumbrances to the particular Demised Premises; provided, further, that “Common Areas” shall specifically exclude those areas which may be occupied from time to time by buildings or structures or parking areas which shall be
designed or designated for the exclusive use of Landlord or any other owners, tenants, licensees or occupants of the Properties or Demised Premises or any Shopping Center, as the case may be, and their respective agents, employees, customers,
licensees and invitees. Notwithstanding the foregoing, until the occurrence of the Multi-Tenant Occupancy Date, all areas and facilities which would otherwise constitute “Common Areas” located wholly on the Property shall be deemed to be a
part of the Demised Premises, and shall be subject to Tenant’s exclusive use and possession and shall be Tenant’s sole responsibility (except as otherwise provided herein), subject to all Legal Requirements, Encumbrances and all other
provisions of this Master Lease. 
 “Conciliator”: As defined in Section 29.1(b). 

“Condemnation”: As defined in Section 12.8(a). 

“Construction Professionals”: As defined in Schedule 1.7(j)(ii)B.2. 

“Current Title Policy”: As defined in Section 1.6(g). 

“Demised Premises”: As defined in Section 1.1. 

“Destruction Termination Fee”: As defined in Section 12.7. 

“Dispute”: As defined in Section 29.1(a). 

“Dispute Notice”: As defined in Section 29.1(c). 

“Division Principles”: As defined in Section 1.7(b). 

“dollars and “$” shall mean the lawful money of the United States. 

“EBITDA,” “EBITDAR”: With respect to any Store, the net income (which for the purposes of this
calculation shall include all rents collected) or loss calculated with respect to the operations of such Store on a Property-by-Property or “four wall” basis, determined in accordance with GAAP using the methodologies and practices of
Tenant’s Parent currently in 

  
 33 

 
effect, adjusted by excluding (1) income tax expense, (2) consolidated interest expense (net of interest income), (3) depreciation and amortization expense, (4) any income,
gains or losses attributable to the early extinguishment or conversion of indebtedness or cancellation of indebtedness, (5) gains or losses on discontinued operations and asset sales, disposals or abandonments, (6) impairment charges or
asset write-offs, including, without limitation, those related to goodwill or intangible assets, Long-Lived Assets, and investments in debt and equity securities, in each case, in accordance with GAAP, (7) any noncash items of expense (other
than to the extent such noncash items of expense require or result in an accrual or reserve for future cash expenses), (8) extraordinary gains or losses, (9) unusual or nonrecurring gains or items of income or loss and (10) in the
case of EBITDAR, Base Rent payable under this Master Lease; provided that each of net income and the foregoing adjustments shall be determined using the methodologies and practices of Tenant’s Parent in effect as of the Commencement Date
as shown on Schedule 2.1(a) hereto. 
 “Encumbrance” or “Encumbrances”: As defined
Section 1.1(d). 
 “Environmental Costs”: As defined in Section 20.4. 

“Environmental Equipment”: All above-ground or underground storage tanks for petroleum, petroleum products, solvents,
chemicals or other liquids; above-ground or in-ground hydraulic or mechanical lifts; solvent recovery systems; oil-water separator systems; alignment racks; gasoline pumps, dispensers, pipes and pipelines, and dispensing islands and canopies, and
ancillary equipment; and all other machinery, equipment, facilities, fixtures and installations now or hereafter used, operated, installed, altered or maintained in connection with or associated with the use, storage, generation, treatment,
recycling, transportation, removal or disposal of Hazardous Substances, now or hereafter located at, on or about the Demised Premises. 

“Environmental Laws”: Any and all federal, state, municipal and local laws, statutes, ordinances, rules, regulations,
guidances, policies, orders, decisions, determinations, decrees or judgments, whether statutory or common law, as amended from time to time, now or hereafter in effect, or promulgated, pertaining to pollution, the environment, natural resources,
public health and safety and industrial hygiene, including the management, use, generation, manufacture, labeling, registration, production, storage, release, discharge, spilling, leaking, emitting, injecting, escaping, abandoning, dumping,
disposal, handling, treatment, removal, decontamination, cleanup, transportation or regulation of or exposure to any Hazardous Substance, including the Industrial Site Recovery Act, the Clean Air Act, the Clean Water Act, the Toxic Substances
Control Act, the Comprehensive Environmental Response Compensation and Liability Act, the Resource Conservation and Recovery Act, the Federal Insecticide, Fungicide, Rodenticide Act, the Safe Drinking Water Act and the Occupational Safety and Health
Act. 
 “Environmental Ordinary Course of Business”: As defined in Section 20.1. 

“Environmental Permits”: As defined in Schedule 20.6(c)(i). 

“Equity Interests”: With respect to any person, any and all shares, interests, participations or other equivalents,
including membership interests (however designated, whether 

  
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voting or nonvoting), of equity of such person, including, if such person is a partnership, partnership interests (whether general or limited) and any other interest or participation that confers
on a person the right to receive a share of the profits and losses of, or distributions of assets of, such partnership. 
 “Event
of Default”: As defined in Section 13.1. 
 “Event of Default Notice”: As defined in
Section 13.2(b). 
 “Excepted Liens”: As defined in Section 1.6(g). 

“Excess Expenses”: As defined in Schedule 10.2(e)(17). 

“Exclusive Store Areas”: As defined in definition of “Common Areas.” 

“Fair Market Rent”: With respect to the Properties or any portion thereof (including any space offered to Tenant in
any 100% Recapture Property), the prevailing market rent (including all fixed, percentage and Additional Charges) which is generally obtained by owners or landlords of real property on an arm’s-length basis for leases of similar space (size,
location and amenities) in the geographical market where the subject space is located, taking into account all of the material terms and conditions of the prospective lease, including tenant improvements and allowance, delayed or free rent, security
deposits and the like, and in the case of the Demised Premises, subject to the applicable terms and conditions of this Master Lease including with respect to the termination or recapture of Nonprofitable Property, Recapture Property and 100%
Recapture Property, such Fair Market Rent to be determined by mutual agreement by the parties or in accordance with Article XXVI. 

“Final Recapture Plans”: As defined in Section 1.7(c). 

“Financial Statements”: (i) For a Fiscal Year, consolidated statements of Tenant’s Parent and its
consolidated subsidiaries of income, stockholders’ equity and cash flows for such period and the related consolidated balance sheet as at the end of such period, together with the notes thereto, all in reasonable detail and setting forth in
comparative form the corresponding figures for the preceding Fiscal Year and prepared in accordance with GAAP and audited by a “big four” or other nationally recognized accounting firm, and (ii) for a fiscal quarter, consolidated
statements of Tenant’s Parent’s income, stockholders’ equity and cash flows for such period and for the period from the beginning of the Fiscal Year to the end of such period and the related consolidated balance sheet as at the end of
such period, together with the notes thereto, all in reasonable detail and setting forth in comparative form the corresponding figures for the corresponding period in the preceding Fiscal Year and prepared in accordance with GAAP. 

“Fiscal Year”: The fiscal year of Tenant’s Parent for public reporting purposes. 

“50% Go Dark”: As defined in Section 7.3(b). 

“50% Go Dark Date”: As defined in Section 7.3(b). 

  
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 “50% Go Dark Notice”: As defined in Section 7.3(b). 

“50% Go Dark Operating Standard: As defined in Section 7.3(b). 

“50% Go Dark Period”: As defined in Section 7.3(b). 

“50% Go Dark Property” and “50% Go Dark Properties”: As defined in Section 7.3(b). 

“Fixtures”: As defined in Section 1.1(c). 

“Force Majeure”: A delay due to acts of God, governmental restrictions, stays, judgments, orders, decrees, enemy
actions, civil commotion, fire, casualty, strikes, work stoppages, shortages of labor or materials or similar causes beyond the reasonable control of Tenant; provided, that (1) any period of Force Majeure shall apply only to performance of the
obligations necessarily affected by such circumstances and shall continue only so long as Tenant is continuously and diligently using all reasonable efforts to minimize the effect and duration thereof; and (2) Force Majeure shall not include
the unavailability or insufficiency of funds. 
 “Foreclosure Purchaser”: As defined in Section 14.1.

 “Free-Standing SAC”: A SAC which comprises a free-standing building separate and apart from a Store, expressly
excluding any Appendage SAC. 
 “Free-Standing SAC Lease”: As defined in Section 9.8(b)(ii). 

“Further Encumbrances”: As defined in Section 1.1(d). 

“GAAP”: United States generally accepted accounting principles, as in effect from time to time. 

“General Tax Indemnity”: As defined in Section 4.3. 

“Governmental Approvals” means any notices or reports to be submitted to, or other filings to be made with, or any
consents, registrations, approvals, permits or authorizations to be obtained from, any Governmental Authority. 
 “Governmental
Authority” means any federal, state, local, foreign or international court, government, department, commission, board, bureau, agency, official or other legislative, judicial, regulatory, administrative or governmental authority. 

“Gross Leasable Square Footage”: With respect to any Demised Premises, the gross square footage available for lease at
such Demised Premises or any other building or improvement now or hereafter located on the applicable Property, (a) with respect to Tenant’s Space, as measured and determined in accordance with the same methods and manner applied in the
determination of the “Initial Leased Square Feet” of the Demised Premises as set forth on Schedule 2 to the Side Letter, and (b) with respect to all other space, the greater of (i) such gross square footage as
measured and determined in accordance with the same methods and manner as 

  
 36 

 
in clause (a) or (ii) any other measure of gross square footage as set forth in any lease or other occupancy agreement by Landlord with respect to the Property. Disputes with respect to
the determination of Gross Leasable Square Footage shall be resolved in accordance with Article XXIX. 
 “Guaranty
Amendment”: As defined in definition of “Lease Guaranty.” 
 “Handling”: As defined in
Section 20.4. 
 “Hazardous Substances”: Each and every element, compound, chemical mixture, emission,
contaminant, pollutant, material, waste or other substance (including radioactive substances, whether solid, liquid or gaseous) which is defined, determined or identified as hazardous, or toxic or under any Environmental Law or for which liability
or standards of care or a requirement for investigation or remediation are imposed under, or that are otherwise subject to, Environmental Law, including, without limitation, asbestos, asbestos containing materials, urethane, polychlorinated
biphenyls, any petroleum product, petroleum derived products and/or its constituents or derivatives, and any caustic, flammable or explosive materials. Without limiting the generality of the foregoing, the term shall mean and include: 

(a) “hazardous substances” as defined in the Comprehensive Environmental Response, Compensation and Liability Act of
1980, the Superfund Amendment and Reauthorization Act of 1986, or Title III of the Superfund Amendment and Reauthorization Act, each as amended, and regulations promulgated thereunder; excluding, however, common maintenance and cleaning products
regularly found at properties with a standard of operation and maintenance comparable to the applicable Property; 
 (b)
“hazardous waste” and “regulated substances” as defined in the Resource Conservation and Recovery Act of 1976, as amended, and regulations promulgated thereunder; 

(c) “hazardous materials” as defined in the Hazardous Materials Transportation Act, as amended, and regulations
promulgated thereunder; 
 (d) “chemical substance or mixture” as defined in the Toxic Substances Control Act, as
amended, and regulations promulgated thereunder; and 
 (e) “hazardous materials” as defined under all applicable
environmental protection statutes of each state and municipality in which the Demised Premises are located. 
 “Holdover
Period”: As defined in Section 1.11(d). 
 “Holdover Space”: As defined in
Section 1.11(d)(i). 
 “Hometown Rents”: As defined in Section 10.5. 

  
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 “Impositions”: All taxes, including capital stock, franchise, margin and
other state taxes of Landlord, ad valorem, sales, use, single business, gross receipts, transaction privilege, rent or similar taxes, including tax increases and re-assessments; assessments including assessments for supplemental assessments and
public improvements or benefits, whether or not commenced or completed prior to the date hereof and whether or not to be completed within the Term; water, sewer and other utility levies and charges; excise tax levies; fees including license, permit,
inspection, authorization and similar fees; and all other governmental charges, in each case whether general or special, ordinary or extraordinary, or foreseen or unforeseen, of every character in respect of the Demised Premises or the Property
and/or the Rent and Additional Charges (other than Impositions) and all interest and penalties thereon attributable to any failure in payment by Tenant (other than failures arising from the acts or omissions of Landlord) which at any time prior to,
during or in respect of the Term hereof may be assessed or imposed on or in respect of or be a lien upon (i) Landlord or Landlord’s interest in the Demised Premises or the Property, (ii) the Demised Premises or any part thereof or any
rent therefrom or any estate, right, title or interest therein, (iii) any occupancy, operation, use or possession of, or sales from or activity conducted on or in connection with the Demised Premises or the property or the leasing or use of the
Demised Premises or the property or any part thereof, or (iv) any Tenant’s Property; provided, however, that nothing contained in this Master Lease shall be construed to require Tenant to pay (a) any tax based on net
income (whether denominated as a franchise or capital stock or other tax) imposed on Landlord or any other Person, (b) any transfer, or net revenue tax of Landlord or any other Person except Tenant and its successors, (c) any tax imposed
with respect to the sale, exchange or other disposition by Landlord of any Demised Premises or the proceeds thereof (excluding any recapture of any Recapture Property or Additional Recapture Space or any development, redevelopment or leasing
thereof), or (d) any principal or interest on any Indebtedness on or secured by the Demised Premises owed to a Landlord Mortgagee for which Landlord or its Subsidiaries is the obligor; provided, further, that Impositions shall
include any tax, assessment, tax levy or charge set forth in the foregoing clause (a) or (b) that is levied, assessed or imposed in lieu of, or as a substitute for, any Imposition. Notwithstanding the foregoing, from and after the date of
the termination of this Master Lease in respect of any Recapture Space, Tenant shall pay Tenant’s Proportionate Share of all Impositions (except in the case of any separate assessment of the Recapture Space and Tenant Retained Space for tax
purposes, in which case Tenant shall pay only one hundred percent (100%) of the Impositions which are separately assessed (if any) with respect to the Tenant Retained Space), and Tenant’s obligations for all future Impositions
(i.e., Impositions first accruing or otherwise first payable subsequent to the Actual Recapture Date) shall cease with respect to all other Terminated Space. Notwithstanding any provision herein to the contrary, the Parties acknowledge and
agree that for the sole purpose of any Imposition which may be assessed based upon the rentals payable under this Master Lease, the applicable “SHC Base Rent Adjustment” set forth on Schedule 2 of the Side Letter shall apply with respect
to each individual Demised Premises. 
 “Indebtedness”: With respect to any Landlord Mortgage, all indebtedness for
borrowed money and related obligations (including all principal, interest, late charges, prepayment or other penalties, or any other charges solely in connection with the payment, prepayment or nonpayment thereof). For the avoidance of doubt,
Indebtedness shall expressly exclude (i) all costs, expenses or obligations directly related to the use, occupancy, repair, allocation or maintenance of the Demised Premises or otherwise arising out of the Demised Premises and (ii) all
Impositions, Utility Charges and all other costs, fees or charges (other than Indebtedness) under all Encumbrances, all of which shall remain the obligation of Tenant. 

  
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 “Indemnified Parties”: Landlord and Landlord Mortgagee, and each of their
respective successors and assigns, their members, managers, partners, shareholders, officers, directors, agents, attorneys and representatives. 

“Initial Term”: As defined in Section 1.4. 

“Inspections”: As defined in Section 20.5(a). 

“Installment Expense” or “Installment Expenses”: As defined in Section 4.5(a). 

“Installment Expense Statement”: As defined in Section 4.5(b)(iii). 

“Insurance Requirements”: The terms and conditions of all insurance policies required to be maintained by Tenant by
this Master Lease, any Landlord Mortgage, and any other Encumbrances, and all requirements of the issuer of any such policy and of any insurance board, association, organization or company necessary for the maintenance of any such policy, including
all of Tenant’s permitted self-insurance. 
 “Kmart Store(s)”: As defined in the Recitals. 

“Kmart Tenant”: As defined in the Preamble. 

“Known Environmental Problems”: As defined in Section 14.12(b)(ii). 

“Land”: As defined in Section 1.1(a). 

“Landlord”: As defined in the Preamble. 

“Landlord Authorized Work”: As defined in Section 21.18. 

“Landlord Encumbrances”: As defined in Section 1.6(g). 

“Landlord Mortgage”: As defined in Section 11.1. 

“Landlord Mortgage Documents”: With respect to each Landlord Mortgage and Landlord Mortgagee, the applicable Landlord
Mortgage, loan agreement, debt agreement, credit facility agreement, indenture, lease, note, collateral assignment instruments, guarantees, environmental and indemnity agreements and other documents or instruments evidencing, securing or otherwise
relating to the loan made, credit extended, or lease or other financing vehicle entered into pursuant thereto, as amended and supplemented from time to time in accordance with Article XIV. 

“Landlord Mortgagee”: As defined in Section 11.1. 

“Landlord 100% Recapture Property Termination Right”: As defined in Section 1.9. 

  
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 “Landlord’s Insurance Costs”: As defined in
Section 11.2(b). 
 “Landlord Tax Returns”: As defined in Section 4.1(b). 

“Landlord’s Work”: As defined in Schedule 1.7(i)(ii). 

“Lands’ End Agreements”: That certain (a) Master Lease Agreement dated April 4, 2014, as amended on
July 6, 2015 (and as hereafter amended) by and between Sears, Roebuck and Co. and Lands’ End, Inc. (“Lands’ End”) and (b) that certain Retail Operations Agreement dated April 4, 2014 (as now or
hereafter amended) by and between and between Sears, Roebuck and Co. and Lands’ End, Inc. Those Demised Premises which contain space demised to Lands’ End (“Lands’ End Space”) pursuant to the Lands’ End
Agreements are listed on Exhibit D attached hereto. Tenant shall continue to retain all right, title and interest in the Lands’ End Agreements, and the same shall not be assigned to Landlord, except to the extent provided in
Section 10.5(b). 
 “Lands’ End Lease”: That certain (a) Master Lease Agreement dated
April 4, 2014, as amended on July 6, 2015 (and as hereafter amended) by and between Sears, Roebuck and Co. and Lands’ End. 

“Lease” or “Leases”: Any and all leases of a portion of any Property by Tenant or any
Affiliate of Tenant to any unaffiliated third party existing immediately prior to the consummation of the Purchase Agreement, as the same may be amended from time to time, and all replacements thereof, and all new leases or subleases entered into by
Landlord after the date hereof (including with respect to any Recapture Space or Additional Recapture Space), but excluding all Subleases. The Lands’ End Agreements and the Sears Hometown License Agreement shall not constitute or be deemed to
be Leases. The Leases which are in existence as of the date hereof have been assigned by separate instrument by Tenant or an Affiliate of Tenant to Landlord in connection with Landlord’s acquisition of the Demised Premises. 

“Lease Guarantor”: Tenant’s Parent and each entity that guarantees the payment or collection of all or any
portion of the amounts payable by Tenant, or the performance by Tenant of all or any of its obligations, under this Master Lease from time to time, including without limitation those entities set forth on Schedule 2.1(b). Tenant shall cause
each Subsidiary of Tenant’s Parent that, now or in the future becomes liable in respect of Tenant Parent’s principal working capital credit facility (presently the Second Amended and Restated Credit Agreement dated as of April 8,
2011, as amended), to be a Lease Guarantor and execute a Lease Guaranty; provided that Landlord shall, other than in connection with the sale or other disposition (including without limitation by equity distribution or rights offering) of all or
substantially all of the assets in one transaction or a series of related transactions of Tenant’s Parent (in respect of which this proviso shall not apply), upon Tenant’s request and at Tenant’s expense pursuant to reasonable and
customary forms prepared by Tenant, release any Lease Guarantor that ceases to be a Subsidiary of Tenant’s Parent from its Lease Guaranty. For avoidance of doubt, no Lease Guarantor that remains a Subsidiary of Tenant’s Parent will be
released from the Guaranty or entitled to release from the Guaranty whether or not it ceases to be liable in respect of Tenant Parent’s principal working capital credit facility. 

  
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 “Lease Guaranty”: Any guaranty by a Lease Guarantor of the obligations of
Tenant under this Master Lease, as the same may be amended, supplemented or replaced from time to time with Lender’s prior written consent or otherwise in accordance with the terms of this Master Lease. Any Lease Guaranty shall terminate and be
of no force or effect with respect to any Property or portion thereof as to which this Master Lease is terminated pursuant to the express terms of Section 1.6, 1.7, 1.8, or 1.9 or by reason of casualty or
Condemnation as provided herein (except in each case for all obligations of Tenant which have accrued as of the Master Lease termination date or which survive the termination of the Master Lease) and shall continue in full force and effect with
respect to the Master Lease with respect to the remainder of the Demised Premises, provided, however, that Landlord may require Lease Guarantor to, and Lease Guarantor shall, execute, and acknowledge an amendment to any existing Least
Guaranty (“Guaranty Amendment”) ratifying and reconfirming the Lease Guaranty with respect to such remainder of the Demised Premises. In the event of any New Lease, or any new lease to any Successor Landlord, any Lease
Guaranty shall continue to apply to same and Tenant shall cause each then-existing Lease Guarantor of this Master Lease to execute, acknowledge and deliver an amendment to any existing Lease Guaranty or a new Lease Guaranty (each, a “New
Lease Guaranty”) on all of the same terms and conditions of the existing Lease Guaranty, modified appropriately to reflect such New Lease or new lease to Successor Landlord, as the case may be. 

“Leased Improvements”: As defined in Section 1.1(b). 

“Leasehold Estate”: As defined in Section 15.1. 

“Leasehold Property”: As defined in the Recitals. 

“Lease Provisions”: As defined in Section 21.15. 

“Lease Year”: The first (1st) Lease Year shall be the period commencing on the Commencement Date and ending on
the last day of the calendar month in which the first (1st) anniversary of the Commencement Date occurs, and each subsequent Lease Year shall be each period of twelve (12) full calendar months after the last day of the prior Lease Year.

 “Legal Requirements”: All federal, state, county, municipal and other governmental statutes, laws, rules,
policies, guidance, codes, orders, regulations, ordinances, permits, licenses, covenants, conditions, restrictions, judgments, decrees and injunctions (including common law and Environmental Laws) affecting either the Demised Premises or
Tenant’s Property or the construction, use or alteration thereof, whether now or hereafter enacted and in force, including any which may (i) require repairs, modifications or alterations in or to the Demised Premises and/or Tenant’s
Property, (ii) in any way adversely affect the use and enjoyment thereof, or (iii) regulate the transport, handling, use, storage or disposal or require the cleanup or other treatment of any Hazardous Substance. For the avoidance of doubt,
so long as Tenant is not in violation of any Legal Requirements (including, without limitation, by reason of applicable provisions with respect to “grandfathering,” notice, grace or cure periods, protest, dispute and contests, negotiations
of terms and conditions of remedial action, and the like), Tenant shall be deemed to be in compliance with any Legal Requirements (including Environmental Law), and Tenant’s liability for any performance by Landlord of Tenant’s obligations
to so comply (as permitted in this Master Lease) shall be similarly conditioned or limited thereby. 

  
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 “LE-SHO Letter Agreement”: As defined in Section 10.5. 

“LE Rents”: As defined in Section 10.5. 

“Local Remedies”: As defined in Section 21.5. 

“Long-Lived Assets”: All property capitalized in accordance with GAAP with an expected life of not less than fifteen
(15) years as initially reflected on the books and records of the owner thereof at or about the time of acquisition thereof (and, for the avoidance of doubt, with respect to property acquired by Landlord pursuant to the Purchase Agreement, the books
and records of Tenant’s Parent at the time of acquisition thereof by Tenant’s Parent or its applicable Subsidiary). 

“Liability” or “Liabilities” means with respect to any Person, any and all claims, debts,
demands, actions, causes of action, suits, damages, costs, obligations, accruals, accounts payable, reckonings, bonds, indemnities and similar obligations, agreements, promises, guarantees, make whole agreements and similar obligations, and other
liabilities and requirements of such Person, including all contractual obligations, whether accrued or fixed, absolute or contingent, matured or unmatured, liquidated or unliquidated, reserved or unreserved, known or unknown, or determined or
determinable, whenever arising and including those arising under any applicable Law, rule, regulation, Action, threatened or contemplated Action, order or consent decree of any Governmental Authority or any award of any arbitrator or mediator of any
kind, and those arising under any Contract, including those arising under this Agreement, in each case, whether or not recorded or reflected or required to be recorded or reflected on the books and records or financial statements of any Person. For
the avoidance of doubt, Liabilities shall include reasonable attorneys’ fees, the costs and expenses of all demands, assessments, judgments, settlements and compromises, and any and all other costs and expenses whatsoever reasonably incurred in
connection with anything contemplated by the preceding sentence. 
 “Master Lease”: As defined in the Preamble. 

“Maximum Foreseeable Loss”: As defined in Section 11.2(a). 

“Multi-Tenant Occupancy Date”: At any time during the Term, the earliest (including as of the Commencement Date) date
on which any of the following shall occur with respect to a Demised Premises or Property”: (a) the Property shall be subject to any Lease, or (b) the Actual Recapture Date and/or the Actual Additional Recapture Space Termination Date
(as applicable). 
 “New Lease” or “New Leases”: As defined in Section 1.12(a).

 “New Lease Guaranty”: As defined in definition of “Lease Guaranty.” 

“Nonprofitable”: With respect to any Store as of any date of determination, that the EBITDAR for such Store for the
twelve (12)-month period ending as of the last day of the most recently completed fiscal quarter of Tenant Parent is less than the applicable ‘SHC Base Rent Adjustment” as specified in Schedule 2 (attached to the Side
Letter), as increased from and after the first (1st) Lease Year as provided herein. 

  
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 “Nonprofitable Property”: As defined in Section 1.6(b). 

“Nonprofitable Property Limitation”: As defined in Section 1.6(e). 

“Nonprofitable Property Termination Date”: As defined in Section 1.6(b). 

“Non-Release Violation(s): As defined in Section 20.3. 

“Notice”: A written notice given in accordance with Article XIX. 

“OFAC”: As defined in Section 24.1. 

“Offer Period”: As defined in Section 1.9(a)(v). 

“Offer Space”: As defined in Section 1.9(a)(v). 

“Officer’s Certificate”: A certificate of Tenant or Landlord, as the case may be, signed by a senior officer or
managing or general partner of such party authorized to so sign by resolution of its board of directors or by its sole member or by the terms of its by-laws or operating agreement or partnership agreement, as applicable; provided,
however, that any Officer’s Certificate with respect to a Nonprofitable Property shall be signed by the chief financial officer of Tenant. 

“Operating Agreements”: All reciprocal easement, operating and/or construction agreements
(“REAs”), easements and rights of way, covenants, conditions, restrictions, declarations and similar agreements or encumbrances affecting the access, ingress, egress, use, maintenance, construction, parking, signage,
occupancy or operation of any Demised Premises, Property, or Common Area, in existence from time to time, whether or not of record. 

“Operating Expenses”: As set forth on Schedule 10.2(e). 

“Overdue Rate”: On any date, an annual rate equal to five (5) percentage points above the Prime Rate, but in no
event greater than the maximum rate then permitted under applicable law. 
 “Party” or
“Parties”: Landlord and/or Tenant, their successors and assigns as party to this Master Lease, including Kmart Tenant and Sears Tenant (with Kmart Tenant and Sears Tenant each being referred to as a “Tenant
Party”). 
 “Payment Date”: As defined in Section 3.1. 

“Performing Parties”: As defined in Schedule 20.6(x)(B). 

“Permitted Encumbrances”: (i) Liens imposed by law, such as mechanics and materialmen Liens in each case for sums
not yet overdue for a period or more than thirty (30) days or which are being diligently contested in good faith by appropriate proceedings or such other Liens arising out of judgments or awards against Tenant (for purposes of this definition
of “Permitted Encumbrances,” “Tenant” shall mean Tenant and any Person claiming by, through or 

  
 43 

 
under Tenant, as applicable) with respect to which Tenant shall then be proceeding with an appeal or other proceedings for review if enforcement of such Liens is bonded or stayed, (ii) Liens
for taxes, assessments or other governmental charges not yet overdue for a period of more than thirty (30) days or payable or subject to penalties for nonpayment or which are being contested in good faith by appropriate proceedings diligently
conducted, if enforcement of such Liens is bonded or stayed, (iii) all matters disclosed on the title commitment or title policy delivered to Landlord in connection with Landlord’s acquisition of the Properties, together with minor survey
exceptions (or any state of facts an accurate survey might show), minor encumbrances, easements or reservations of, or rights of others for, licenses, rights of way, sewers, electric lines, telegraph and telephone lines and other similar purposes
(including, for the avoidance of doubt, Operating Agreements), or zoning or other restrictions as to the use of the Properties or Liens incidental to the conduct of the business of Tenant or to the ownership of its properties which were not incurred
in connection with any indebtedness for borrowed money and which do not in the aggregate materially adversely affect the value of any Property or materially impair its use in the operation of the business of Tenant, (iv) Liens arising from
Uniform Commercial Code financing statement filings regarding leases of Tenant’s Property entered into by Tenant in the ordinary course of business, (v) Liens securing judgments against Tenant (or any Person claiming by, through or under
Tenant) for the payment of money (excluding judgments for payment of borrowed money) so long as such Liens are adequately bonded and any appropriate legal proceedings that may have been duly initiated for the review of such judgment have not been
finally terminated or the period with which such proceedings may be initiated has not expired, (vi) Leases, or Subleases which are existing on the date hereof or entered into after the date hereof in accordance with the terms of this Master
Lease and (vii) Liens pursuant to or in connection with the Operating Agreements which have not been created or incurred by Tenant. In addition, Permitted Encumbrances shall include any (A) Landlord Mortgage and Landlord Mortgage Documents
(including any Liens securing any notes issued in connection therewith, but not for purposes of determining Tenant’s obligations, and (B) all other liens, changes and Encumbrances of whatsoever nature which are not incurred or caused by
Tenant, Tenant’s Parent, any other Guarantor or Subsidiary of Tenant’s Parent or Tenant Related User (including all liens, changes and Encumbrances in connection with any work expressly requested to be performed or incurred by Landlord or
on behalf of Landlord). Except where the terms of this Master Lease expressly require Tenant to comply with or perform the covenants and obligations of Landlord’s Mortgage Documents, Tenant shall not be deemed to have agreed to comply with or
perform said covenants or obligations of Landlord’s Mortgage Documents, notwithstanding that Tenant shall remain obligated to make all other payments and to observe or perform all other obligations under the Permitted Encumbrances. 

“Person” or “person”: Any individual, corporation, limited liability company, partnership,
joint venture, association, joint stock company, trust, unincorporated organization, government or any agency or political subdivision thereof or any other form of entity. 

“Preliminary Recapture Plans”: As defined in Section 1.7(c). 

“Premises Obligations”: As defined in Section 1.3(c). 

“Prime Rate”: On any date, a rate equal to the annual rate on such date publicly announced by JPMorgan Chase Bank,
N.A. (provided, that if JPMorgan Chase Bank, N.A. 

  
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ceases to publish such rate, the Prime Rate shall be determined according to the Prime Rate of another nationally known money center bank reasonably selected by Landlord) to be its prime rate for
ninety (90)-day unsecured loans to its corporate borrowers of the highest credit standing, but in no event greater than the maximum rate then permitted under applicable law. 

“Prohibited Persons”: As defined in Section 24.1. 

“Prohibited Uses”: As set forth on Exhibit B. 

“Promotional Rights”: As defined in Section 10.2(a)(ii). 

“Property” or “Properties”: As defined in the Recitals. 

“Property Charges”: Collectively, Impositions, Utility Charges, CAM Expenses, Property Document CAM Expenses, all
rents, additional rent and other charges, Landlord’s Insurance Costs and Operating Expenses, and all other costs, fees and charges under all Encumbrances. 

“Property Document CAM Expenses”: As defined in Section 10.2(c)(iii). 

“Proposed 100% Recapture Property Date”: As defined in Section 1.9. 

“Proposed Additional Recapture Space Date”: As defined in Section 1.8(a). 

“Proposed Recapture Date”: As defined in Section 1.7(d). 

“Purchase Agreement”: As defined in the Recitals. 

“Puerto Rico Premises”: As defined in Section 21.25. 

“REAs”: As defined in the definition of “Operating Agreements.” 

“Rebranding and/or Alternative Retail Use”: As defined in Section 7.2(a). 

“Recapture Notice”: As defined in Section 1.7(d). 

“Recapture Separation Work”: As defined Section 1.7(j). 

“Recapture Space”: As defined in Section 1.7(a). 

“Related User” or “Related Users”: With respect to any Person, such Person’s tenants,
subtenants, licensees, agents, employees, customers, invitees, contractors, vendors, agents and representatives, permitted by such Person to use the premises in question. 

“Remediation Materials”: As defined in Schedule 20.6(c)(vii)(B). 

“Removal Date”: As defined in Section 1.12(b). 

“Removal Notice”: As defined in Section 1.12(b). 

  
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 “Removal Property or “Removal Properties”: As defined
in Section 1.12(a). 
 “Renewal Exercise Date”: As defined in Section 1.5(a). 

“Renewal Notice”: As defined in Section 1.5(a). 

“Renewal Revocation Notice”: As defined in Section 1.5(d). 

“Renewal Terms”: As defined in Section 1.5(a). 

“Rent”: Collectively, the Base Rent and all Additional Charges. 

“Required Alterations”: Alterations which are required to comply with Legal Requirements. 

“Restoration Standards”: As defined in Section 12.1(a). 

“Retail Operations Claims”: As defined in Section 14.12(b)(i). 

“SAC” or “SACs”: As defined in the Recitals. 

“SAC Definitive Agreement”: As defined in Section 9.8(a). 

“SAC Definitive Agreement Notice”: As defined in Section 9.8(a). 

“SAC Negotiations”: As defined in Section 9.8(a). 

“Sale”: As defined in Section 21.25. 

“Sale Agreement” As defined in Section 21.25. 

“Sale Counter-Party”: As defined in Section 21.25. 

“Sears Store”: As defined in the Recitals. 

“Sears Tenant”: As defined in the Preamble. 

“SEC”: The United States Securities and Exchange Commission. 

“Security for Excepted Liens”: As defined in Section 1.6(g). 

“Self-Help”: As defined in Section 0. 

“Sears Hometown” means Sears Authorized Hometown Stores, LLC. 

“Sears Hometown License Agreement” means, solely to the extent related to the Property known as KM 9647 located at
4820 S. 4th Street, Leavenworth, KS (“KM 9647 Property”), that certain License Agreement dated as of November 20, 2008 by and between Sears Holdings Management
Corporation, as agent for Sears, Roebuck and Co. and Kmart Corporation, as licensor, and Sears Authorized Hometown, as in effect on the date hereof. 

  
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 “Sears Hometown Space” means the space at the KM 9647 Property occupied
by Sears Hometown pursuant to the Sears Hometown License Agreement. 
 “Senior Representative”: As defined in
Section 29.1(b). 
 “Shopping Center”: Any shopping center, shopping mall or other property of a
third-party property owner located adjacent to the Demised Premises. 
 “Side Letter” means that certain letter
agreement entered into between Landlord and Tenant and dated as of the Commencement Date. 
 “SNDA”: As defined in
Section 14.1. 
 “State”: With respect to each Property, the state or commonwealth in which such Store
is located. 
 “Statement”: As defined in Section 4.5(b)(iii). 

“Stay Period”: As defined in Section 13.1(f). 

“Store”: As defined in the Recitals. 

“Sublease” or “Subleases”: As defined in Section 9.2. 

“Subsidiary”: As to any Person, (i) any corporation more than fifty percent (50%) of whose stock of any
class or classes having by the terms thereof ordinary voting power to elect a majority of the directors of such corporation (irrespective of whether or not at the time stock of any class or classes of such corporation shall have or might have voting
power by reason of the happening of any contingency) is at the time of determination owned by such Person and/or one or more Subsidiaries of such Person, and (ii) any partnership, limited liability company, association, joint venture or other
entity in which such person and/or one or more Subsidiaries of such person has more than a fifty percent (50%) equity interest at the time of determination. Unless otherwise qualified, all references to a “Subsidiary” or to
“Subsidiaries” in this Master Lease shall refer to a Subsidiary or Subsidiaries of Tenant. 
 “Successor
Landlord”: As defined in Section 14.2. 
 “Taxes”: As defined in Section 4.3.

 “Tax Statement”: As defined in Section 4.5(b)(i). 

“Tenant”: As defined in the Preamble and in definition of “Permitted Encumbrances.” 

“Tenant 100% Property Recapture Termination Date”: As defined in Section 1.9(a). 

  
 47 

 “Tenant 100% Property Recapture Termination Notice”: As defined in
Section 1.9(a). 
 “Tenant Additional Recapture Space Termination Date”: As defined in
Section 1.8(a). 
 “Tenant Additional Recapture Space Termination Notice”: As defined in
Section 1.8(a). 
 “Tenant Confidential Information”: As defined in Section 21.24. 

“Tenant Free-Standing SAC Notice”: As defined in Section 9.8(a). 

“Tenant Offer”: As defined in Section 1.9(a)(v). 

“Tenant Party”: As defined in definition of “Party” or “Parties.” 

“Tenant Party Breach”: As defined in Section 1.3(a). 

“Tenant PR Rights”: As defined in Section 21.25. 

“Tenant Recapture Termination Date”: As defined in Section 1.7(d). 

“Tenant Recapture Termination Notice”: As defined in Section 1.7(d). 

“Tenant Retained Space”: As defined in Section 1.7(a). 

“Tenant ROFO Notice”: As defined in Section 1.9(a)(v). 

“Tenant PR Rights”: As defined in Section 21.25. 

“Tenant PR ROFO Rights”: As defined in Section 21.25. 

“Tenant’s Acts”: Collectively, with respect to any matter, the (A) negligent act or omission or willful or
intentional misconduct of Tenant, Tenant’s Parent, Tenant Related User any Subsidiary of Tenant’s Parent, each of their agents, representatives, employees, contractors or vendors, or (B) any breach of any of Tenant’s obligations
under this Master Lease. 
 “Tenant’s Award”: As defined in Section 12.9(d). 

“Tenant’s Parent”: Sears Holdings Corporation. 

“Tenant’s Property”: With respect to each Property, all trade fixtures and other assets (other than the Demised
Premises and property owned by a third party) owned by Tenant and primarily related to or used in connection with the operation of the business conducted on or about the Demised Premises, together with all replacements, modifications, additions,
alterations and substitutes therefor, subject to terms, conditions and limitations of this Master Lease. 

  
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 “Tenant’s Proportionate Share”: (a) Prior to the Multi-Tenant
Occupancy Date, one hundred percent (100%) of all Property Charges and all other Additional Charges; and (b) from and after the Multi-Tenant Occupancy Date, (i) one hundred percent (100%) of all Property Charges and Additional
Charges which are separately assessed or imposed with respect to the portion of the Property occupied by Tenant (as adjusted to take into account recaptures and terminations) or which are attributed solely to the use, operation, occupancy or
consumption of or by Tenant in or on the Demised Premises, and (ii) otherwise, with respect to any individual Demised Premises, as calculated at the time of determination from time to time, a fraction, (A) the numerator of which shall be
the Gross Leasable Square Footage in the Store (including the Lands’ End Space, Sears Hometown Space, any SAC and any other free-standing buildings, if any) which are then leased by Tenant, “Tenant’s Space”), and
(B) the denominator of which shall be the aggregate of all Gross Leasable Square Footage of (1) Tenant’s Space, plus (2) all other buildings and improvements now or hereafter located on the Property, including all Recapture Space
and Additional Recapture Space from and after the date of recapture, and including any new buildings or additions with respect to any Recapture Space, Additional Recapture Space or any other portions of the Property (from and after the issuance of a
certificate of occupancy or equivalent thereof with respect to such new buildings or additions); provided, however, with respect to any expense paid by a third party occupying a building or other space at the Property directly to the taxing
authority, utility or service provider or other vendor which are not included in any Property Charges, the foregoing denominator shall be reduced by the Gross Leasable Square Footage of the building or space leased by such third party for the
purpose of calculating Tenant’s Proportionate Share for such expense item and Tenant shall have not liability in respect of such expense. Disputes with respect to Tenant’s Proportionate Share shall be resolved in accordance with
Article XXIX. Notwithstanding the foregoing, Tenant’s Space shall include all space which may be subject to any Lease entered into by Landlord after the Commencement Date but only as to which (and only so long as) the
applicable Actual Recapture Date, Actual Additional Recapture Space Termination Date or the Actual 100% Recapture Termination Date, as the case may be, has not occurred. 

“Tenant Retained Space”: As defined in Section 1.7(a). 

“Tenant’s Space”: As defined in the definition of “Tenant’s Proportionate Share.” 

“Tenant Termination Election Date”: As defined in Section 1.6(b). 

“Tenant Termination Election Notice”: As defined in Section 1.6(b). 

“Tenant’s Work”: As defined in Schedule 1.7(j)(ii). 

“Term”: As defined in Section 1.4. 

“Terminated Space”: As defined in Section 1.11(a). 

“Termination Fee”: As defined in Section 1.6(c). 

“Third-Party Charges”: As defined in Section 3.1(a). 

“Third-Party Late Charges”: As defined in Section 3.1(a). 

  
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 “Title Insurer”: As defined in Section 1.6(g). 

“Total Condemnation”: As defined in Section 12.8(c). 

“Total Destruction”: As defined in Section 12.2(a). 

“Transaction Expenses”: As defined in Section 1.6(h). 

“Transfer”: Any sale, assignment, transfer, mortgage, pledge, hypothecation, granting of any security interest, lease,
sublicense, license, or occupancy arrangement, whether directly or indirectly, voluntarily or involuntarily, or by operation of law, including without limitation any Change of Control (including any agreement, or granting any option or right, to do
or effectuate any of the foregoing, whether conditional, provisional or absolute). 
 “Trustee”: As defined in
Section 14.4. 
 “Unavoidable Delay”: Delays due to strikes, lockouts, inability to procure materials,
power failure, acts of God, governmental restrictions, enemy action, civil commotion, fire, unavoidable casualty or other causes beyond the reasonable control of the party responsible for performing an obligation hereunder; provided that lack
of funds shall not be deemed a cause beyond the reasonable control of a Party. 
 “Union Bidding”: As defined in
Schedule 1.7(j)(ii)B.3. 
 “Unrelated Successor Tenant”: As defined in Section 9.3.

 “Unsuitable for Its Intended Use”: A state of any Store such that by reason of damage or destruction, or a
partial taking by Condemnation, such Store cannot, following restoration thereof (to the extent commercially practical), be operated on a commercially practicable basis for its use for the operation of Sears store, taking into account, among other
relevant factors, the amount of square footage (excluding the Recapture Space) and the estimated revenue affected by such damage or destruction. 

“Updated Title Commitment”: As defined in Section 1.6(g). 

“Upgrades”: As defined in Section 1.7(j)(iii). 

“Utility Charges”: All fees, costs, expenses and charges for electricity, power, gas, oil, water, sanitary and storm
sewer, septic system refuse collection, security, and other utilities and services used or consumed in connection with the applicable Demised Premises during the Term. 

“Wire Transfer”: As defined in Section 3.3. 

ARTICLE III 
 RENT

 3.1 Rent. (a) Subject to Section 3.1(b), during the Term, Tenant will pay to Landlord the Base
Rent and Additional Charges in lawful money of the United States of America and legal 

  
 50 

 
tender for the payment of public and private debts, in the manner provided in Section 3.3. The Base Rent during any Lease Year is payable in advance in consecutive monthly
installments equal to one twelfth (1/12th) of the annual Base Rent on the first (1st) Business Day of each calendar month during that Lease Year (each, a “Payment
Date”). 
 (b) Notwithstanding the foregoing, if the Commencement Date shall occur on a date which is other than the first
Business Day of a calendar month, then the first Payment Date shall occur on the Commencement Date, and on such date Tenant shall pay the sum of (i) the amount of prorated Base Rent from and after the Commencement Date through the end of the
applicable calendar month, plus (ii) the amount of Base Rent payable for the next succeeding calendar month. 
 3.2 Late Payment
of Rent. Tenant hereby acknowledges that late payment by Tenant to Landlord of Rent will cause Landlord to incur costs and administrative complications not contemplated hereunder, the exact amount and scope of which is presently anticipated
to be extremely difficult to ascertain. Accordingly, if any installment of Rent, other than Additional Charges payable to a Person other than Landlord (“Third-Party Charges”), shall not be paid within five (5) days after
its due date, Tenant will pay Landlord on demand a late charge equal to the lesser of (a) five percent (5%) of the amount of such installment or (b) the maximum amount permitted by law. The parties agree that this late charge
represents a fair and reasonable estimate of the costs and expenses (including economic losses) that Landlord will incur by reason of late payment by Tenant. The parties further agree that such late charge is Rent and not interest and such
assessment does not constitute a lender or borrower/creditor relationship between Landlord and Tenant. Thereafter, if any installment or payment of Rent (other than Third-Party Charges) shall not be paid within ten (10) days after its due date,
the amount unpaid, including any late charges previously accrued, shall bear interest at the Overdue Rate from the due date of such installment or payment to the date of payment thereof, and Tenant shall pay such interest to Landlord on demand. The
payment of such late charge or such interest shall not constitute waiver of, nor excuse or cure, any default under this Master Lease, nor prevent Landlord from exercising any other rights and remedies available to Landlord. Notwithstanding the
foregoing, Tenant shall be responsible for payment of all interest, late charges and other costs and fees imposed by third parties (“Third-Party Late Charges”) with respect to late payments of Third-Party Charges;
provided that, if Landlord shall elect in its discretion to pay (without any obligation to do so) any Third-Party Charges which are not paid by Tenant when due (together with any Third-Party Late Charges), Tenant shall pay Landlord a late
charge and interest, at the rates provided above, on all amounts so paid by Landlord and which Tenant fails to pay to Landlord within five (5) days (as to late charge) or ten (10) days (as to interest), respectively, after the date of
Landlord’s payment. Any interest or late charge which is paid by Tenant and which is subsequently determined to have been charged to or paid by Tenant in error, shall be refunded by Landlord to Tenant without interest. 

3.3 Method of Payment of Rent and Other Sums and Charges. Base Rent and Additional Charges to be paid to Landlord and all sums
to be paid by Landlord to Tenant shall be paid by electronic funds transfer debit transactions through wire transfer or ACH payment of immediately available funds (“Wire Transfer”) and shall be initiated by Tenant for
settlement on or before the applicable Payment Date (or when otherwise due and payable). The Parties shall provide each other with appropriate Wire Transfer information in a Notice from each Party to the

  
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other. If Landlord directs Tenant to pay any Rent to any party other than Landlord, Tenant shall send to Landlord, simultaneously with such payment, a copy of the transmittal letter or invoice
and a check whereby such payment is made or such other evidence of payment as Landlord may reasonably require. All other payments by Tenant of all other sums and charges hereunder (by way of example, and not limitation, payment of the Termination
Fee), and all payments by Landlord to Tenant which are provided herein, shall be made by Wire Transfer. If Tenant makes payment to any third party as directed by Landlord or pursuant to any Landlord Mortgage Documents, upon receipt of such payment
(subject to collection) the same shall be deemed to have been paid to Landlord without further recourse to Tenant. 
 3.4 Net
Lease. Landlord and Tenant acknowledge and agree that (i) this Master Lease is, and is intended to be, what is commonly referred to as a “net, net, net” or “triple net” lease, and (ii) the Rent shall be paid
absolutely net to Landlord, so that this Master Lease shall yield to Landlord the full amount or benefit of the installments of Base Rent and Tenant’s Proportionate Share of Additional Charges throughout the Term with respect to the entire
Demised Premises, all as more fully set forth in Article V and subject to any other provisions of this Master Lease that expressly provide for adjustment or abatement of Rent or other charges (if any). Except as otherwise expressly set
forth in this Master Lease, Tenant assumes the responsibility for the condition, use, operation and maintenance of the Demised Premises, and Landlord shall have no responsibility or liability therefor. If Landlord commences any proceedings for
nonpayment of Rent, Tenant will not interpose any counterclaim or cross complaint or similar pleading of any nature or description in such proceedings (nor move or agree to consolidate in such proceedings any claim by Tenant in any other
proceedings). The covenants to pay Base Rent and Additional Charges amounts hereunder are independent covenants, and Tenant shall have no right to hold back, offset, deduct, credit against or fail to pay in full any such amounts for claimed or
actual default or breach by Landlord of whatsoever nature or for any other reason whatsoever. For the avoidance of doubt, Tenant shall not have, and hereby expressly and absolutely waives, relinquishes, and covenants not to assert, accept or take
advantage of, any right to deposit or pay with or into any court or other third-party escrow, depository account or tenant account with respect to any disputed Rent, or any Rent pending resolution of any other dispute or controversy with Landlord.

 ARTICLE IV 

IMPOSITIONS 
 4.1
Impositions. (a) Subject to Section 4.2 relating to permitted contests, and subject to Section 4.5, during the Term (whether prior or subsequent to any Multi-Tenant Occupancy Date), Tenant shall pay, or cause
to be paid, either one hundred percent (100%) or Tenant’s Proportionate Share, as the case may be, of all Impositions before any fine, penalty, interest or cost may be added for nonpayment. Unless otherwise requested by Landlord (including
to comply with Landlord Mortgage Documents), Tenant shall make such payments directly to the taxing authorities where feasible, or otherwise make such payments to Landlord as part of the Installment Expenses, and shall promptly furnish to Landlord
copies of official receipts or other satisfactory proof evidencing such direct payments. Tenant’s obligation to pay Impositions shall be absolutely fixed upon the date such Impositions become a lien upon the Demised Premises or any part
thereof, subject to Section 4.2. Tenant shall also be responsible for all Impositions which, on the date of the Master Lease, is a lien upon the Demised Premises or any part thereof. 

  
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If any Imposition may, at the option of the taxpayer, lawfully be paid in installments, whether or not interest shall accrue on the unpaid balance of such Imposition, Tenant may pay the same, and
any accrued interest on the unpaid balance of such Imposition, in installments as the same respectively become due and before any fine, penalty, premium, further interest or cost may be added thereto. Notwithstanding the foregoing, if Tenant is
making payments of Installment Expenses which include estimated Impositions, Landlord shall provide funds to Tenant for the direct payment of Impositions by Tenant not later than thirty (30) days before the due date, as a condition precedent to
Tenant’s obligation to make such direct payments of Impositions. 
 (b) Landlord shall prepare and file or cause to be prepared and
filed all tax returns and reports as may be required by Legal Requirements with respect to Landlord’s net income, gross receipts, franchise taxes and taxes on its capital stock and any other returns required to be filed by or in the name of
Landlord (the “Landlord Tax Returns”), and Tenant or Tenant’s Parent and/or Lease Guarantor shall prepare and file all other tax returns and reports as may be required by Legal Requirements with respect to or relating to
the Demised Premises and Tenant’s Property. 
 (c) Any refund due from any taxing authority in respect of any Imposition paid by or on
behalf of Tenant shall be paid over to or retained by Tenant, net of all of Landlord’s costs, fees and expenses reasonably incurred in connection with obtaining such refund (including all reasonable attorneys’ fees). 

(d) Landlord and Tenant shall, upon request of the other, provide such data as is maintained by the party to whom the request is made with
respect to the Demised Premises as may be necessary to prepare any required returns and reports. If any property covered by this Master Lease is classified as personal property for tax purposes, Tenant shall file all personal property tax returns in
such jurisdictions where it must legally so file. Landlord, to the extent it possesses the same, and Tenant, to the extent it possesses the same, shall provide the other party, upon request, with cost and depreciation records necessary for filing
returns for any property so classified as personal property. Where Landlord is legally required to file personal property tax returns, Tenant shall be provided with copies of assessment notices indicating a value in excess of the reported value in
sufficient time for Tenant to file a protest. 
 (e) Billings for reimbursement by Tenant to Landlord of personal property or real property
taxes and any taxes due under the Landlord Tax Returns, if and to the extent Tenant is responsible for such taxes under the terms of this Section 4.1, shall be accompanied by copies of a bill therefor and payments thereof that identify
the personal property or real property or other tax obligations of Landlord with respect to which such payments are made. 
 (f) Impositions
imposed or assessed in respect of the tax-fiscal period during which the Term terminates shall be adjusted and prorated between Landlord and Tenant, whether or not such Imposition is imposed or assessed before or after such termination, and
Tenant’s obligation to pay its prorated share thereof in respect of a tax-fiscal period during the Term shall survive such termination. Landlord will not voluntarily enter into agreements that will result in additional Impositions without
Tenant’s consent, which shall not be unreasonably withheld (it being understood that it shall not be reasonable to withhold consent to customary additional Impositions that other property owners of properties similar to the Demised Premises
customarily consent to in the ordinary course of business); provided, that Tenant is given reasonable opportunity to participate in the process leading to such agreement. 

  
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 4.2 Permitted Contests. Tenant, upon not less than thirty (30) days’
prior written Notice to Landlord, on its own or in Landlord’s name, at Tenant’s sole cost and expense, may contest, by appropriate legal proceedings conducted in good faith and with due diligence, the amount, validity or application, in
whole or in part, of any licensure or certification decision (including pursuant to any Imposition, Legal Requirement, Insurance Requirement, lien, attachment, levy, encumbrance, charge or claim), and upon Tenant’s request Landlord shall
reasonably cooperate with Tenant with respect to such contest at no cost or expense to Landlord; provided, however, that (i) in the case of an unpaid Imposition, lien, attachment, levy, encumbrance, charge or claim pursuant to any
Legal Requirements, the commencement and continuation of such proceedings shall suspend the collection or enforcement thereof from or against Landlord and the Demised Premises; (ii) neither the Demised Premises, the Rent therefrom nor any part
or interest in either thereof would be in any danger of being sold, forfeited, attached or lost pending the outcome of such proceedings; (iii) in the case of a Legal Requirement, neither Landlord nor Tenant would be in any danger of civil or
criminal liability for failure to comply therewith pending the outcome of such proceedings; (iv) in the case of a Legal Requirement, Imposition, lien, encumbrance or charge that exceeds five hundred thousand dollars ($500,000), Tenant shall
give such reasonable security (in Cash, or by satisfactory letter of credit) as may be reasonably required by Landlord or any Title Insurer to insure ultimate payment of the same (including all interest, penalties and charges) and to prevent any
sale or forfeiture of the Demised Premises or the Rent by reason of such nonpayment or noncompliance; (v) in the case of an Insurance Requirement, the coverage required by Section 10.3 shall be maintained; (vi) Tenant shall
keep Landlord reasonably informed as to the status of and with copies of all material documents in the proceedings; and (vii) if such contest shall be finally resolved against Landlord or Tenant, Tenant shall promptly pay the amount required to
be paid, together with all interest and penalties accrued thereon, or comply with the applicable Legal Requirement or Insurance Requirement. Landlord, at Tenant’s expense, shall execute and deliver to Tenant such authorizations and other
documents as may reasonably be required in any such contest, and, if reasonably requested by Tenant or if Landlord so desires, Landlord shall have the right to join as a party therein and/or fully participate therein in conjunction with Tenant. The
provisions of this Section 4.2 shall not be construed to permit Tenant to contest the payment of Rent payable by Tenant to Landlord hereunder. Without limiting any other provision of this Master Lease, Tenant shall indemnify, defend,
protect and save Landlord and all Indemnified Parties and the Demised Premises harmless from and against any and all liability, costs, fees, damages, expenses, penalties, fines and charges of any kind (including reasonable attorneys’ fees,
including those incurred in the enforcement of this indemnity) that may be imposed upon Landlord, the Property and/or the Demised Premises in connection with any such contest and any loss resulting therefrom. Notwithstanding anything in this
Section 4.2, any contest with respect to any Demised Premises a portion of which has been recaptured by Landlord, shall be subject to Landlord’s prior reasonable approval, provided that, in such event, upon receipt of an
invoice therefor in reasonable detail, Landlord shall promptly pay and reimburse Tenant for all reasonable fees, costs and expenses incurred by Tenant (including reasonable attorneys’ fees) in pursuing any such contest, in excess of
Tenant’s Proportionate Share thereof. 

  
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 4.3 General Tax Indemnity. Tenant will indemnify the Indemnified Parties against
any fees or taxes (“Taxes”) imposed by the United States or any taxing jurisdiction or authority of or in the United States (or foreign taxing authority, to the extent such foreign jurisdiction imposes such taxes as a result
of the location of Tenant or activities of Tenant in such jurisdiction) in connection with the Properties or the transactions contemplated herein (unless with respect to Lease Property which has been recaptured or terminated); provided that the
amount of any indemnification payment in respect of Taxes shall be (i) decreased by any cash Tax benefit actually realized by the Indemnified Parties as a result of such Taxes; and (ii) increased by an amount equal to any cash Taxes
attributable to the receipt of such indemnification payment by the Indemnified Parties. This general tax indemnity (“General Tax Indemnity”) will exclude: (i) Taxes based on net income or capital gains, or franchise or
doing business taxes of an Indemnified Party imposed by a jurisdiction in which such Indemnified Party is otherwise resident for tax purposes or is subject to taxation as a result of the Properties being located in such jurisdiction (but only to the
extent of the portion of rent or gains attributable to such Properties); (ii) Taxes on capital or net worth (including minimum and alternative minimum Taxes measured by any items of Tax preference); (iii) Taxes to the extent they would not
have been imposed if the Indemnified Party or any of its Affiliates had not engaged in activities or had a presence in the jurisdiction imposing such Taxes that activities or presence are unrelated to the transaction contemplated hereby;
(iv) Taxes resulting from a voluntary or involuntary transfer by an Indemnified Party of an interest in all or any part of the Properties, an Indemnified Party or any other interest created under the operative documents, other than during an
Event of Default and other than pursuant to Tenant’s exercise of any rights or obligations (including any elections with respect to any Terminated Space) under the operative documents; (v) Taxes imposed because the Indemnified Party is not
a U.S. person; (vi) Taxes resulting from the willful misconduct or gross negligence by the Indemnified Party or any of its Affiliates; and (vii) Taxes, with respect to any period after the termination of the Master Lease, with respect to a
particular Property. The foregoing exclusions will not apply to sales, use, transfer, recording and similar taxes unrelated to Tenant’s Property or any Alterations which Tenant elects to remove or surrender, or the termination of the Master
Lease with respect to any Terminated Space which is not the result of Tenant’s election. The General Tax Indemnity will be subject to Tenant’s right to contest Taxes in the manner provided in Section 4.2. Tenant will be
entitled to all future refunds of, and tax savings of Landlord (but not any of its direct or indirect beneficial owners) resulting from or attributable to, any event giving rise to payment of a General Tax Indemnity or the making of such payment.

 4.4 Utility Charges. Tenant shall pay or cause to be paid when due all Utility Charges. Tenant shall also pay or reimburse
Landlord for all costs and expenses of any kind whatsoever that at any time during the Term hereof, with respect to any Demised Premises, may be imposed against Landlord by reason of any of the Encumbrances (except as expressly provided to the
contrary herein, including any and all costs and expenses associated with any utility, drainage and parking easements). Tenant will not enter into any agreements or consent to any transaction or instruments that will encumber the Demised Premises
(except for permitted Subleases on the terms and conditions herein) or the Property or any that will affect the Demised Premises or the Property after the expiration of the Term. In the event of any termination of this Master Lease with respect to
any Terminated Space (other than as a result of an Event of Default), Tenant’s obligation for new Utility Charges shall cease as to all Utility Charges applicable to each all such Terminated Space which first accrue from and after the date of
termination; provided, that 

  
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from and after termination, Tenant shall pay for all Utility Charges with respect to the Tenant Retained Space pursuant to a separate meter to be installed by Landlord at its expense (and, until
installation of a separate meter is complete, Tenant shall pay all Utility Charges with respect to the Retained Space in accordance with Landlord’s and Tenant’s reasonable allocation of the Utility Charges as determined then in good faith
based on the most current Utility bills available with respect to Tenant’s usage in the applicable Demised Premises) and all accessory lines and equipment which may be required (if any) to be installed by Landlord at its expense. 

4.5 Installment Expenses. (a) Subject to the further provisions of this Section 4.5, from and after the
Commencement Date, on each Payment Date for each individual Demised Premises, Tenant shall deposit with Landlord an amount equal to one-twelfth (1/12th) of the sum of the reasonable estimate of Landlord of annual Impositions, Operating
Expenses, CAM Expenses, Property Document CAM Expenses, Landlord’s Insurance Costs and all other recurrent Property Charges (each an “Installment Expense”, and collectively, “Installment
Expenses”) with respect to such individual Demised Premises, and in light of Tenant’s Proportionate Share, as determined from time to time based on (i) reasonably available information existing as at the Commencement Date,
with respect to the first Lease Year, and (ii) thereafter, the prior Lease Year’s estimates (as adjusted for facts or circumstances known to Landlord and/or Tenant). Landlord will apply the amounts so deposited to the payment of
Installment Expenses as the same shall become due and payable. 
 (b) The monthly installments on account of Installment Expenses shall be
payable by Tenant as follows: 
 (i) Tenant’s Proportionate Share of all Impositions on an annual basis shall be paid
to Landlord in equal monthly installments on each Payment Date in an amount based on one hundred five percent (105%) of the prior calendar year tax bill for all of the Demised Premises, or Landlord may elect, at its sole option, to bill such
amounts in arrears; provided, that in the event Landlord is required under any mortgage covering the Property to escrow real estate taxes, Landlord may, but shall not be obligated to, use the amount so paid as a basis for its estimate of the
monthly installments due from Tenant hereunder. Tenant shall pay initially, and until further notice by Landlord, the estimated amounts of Impositions set forth in Schedule 4.5 to the Side Letter. On an annual basis, no later than
April 1 of each calendar year, Landlord shall furnish Tenant with a written statement of the actual amount of Tenant’s Proportionate Share of Impositions (“Tax Statement”) and a copy of any and all tax bills and
statements received from the taxing authority which serve as a basis for the determination of Impositions and Tenant’s Proportionate Share of Impositions. In the event no tax bill is available, Landlord will reasonably compute the amount of
such tax and provide a copy of the tax bill when the same becomes available. If the total amount paid by Tenant under this Section 4.5(b)(i) for any calendar year during the Lease Term, or any Renewal Term, shall be less than the actual
amount due from Tenant for such year, as shown on the applicable Tax Statement, Tenant shall pay to Landlord the difference between the amount paid by Tenant and the actual amount due, such deficiency to be paid within forty-five (45) days
after Landlord’s delivery of such statement; and if the total amount paid by Tenant hereunder for any such calendar year shall 

  
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exceed such actual amount due from Tenant for such calendar year, such excess shall be credited against the next installment of Impositions and assessments due from Tenant to Landlord hereunder.
If the Term shall have expired and no further Impositions shall be due, Landlord shall refund difference to Tenant when Landlord sends the final Tax Statement. 

(ii) Landlord shall reasonably estimate by Notice to Tenant given not less than sixty (60) days in advance of each
calendar year the amounts Tenant shall owe for Installment Expenses other than Impositions for any full or partial calendar year of the Term. Tenant shall pay such estimated amounts in equal monthly installments on or before each Payment Date.
Tenant shall pay initially, and until further notice by Landlord, the estimated amounts of Installment Expenses other than Impositions set forth in Schedule 4.5 to the Side Letter. Within a reasonable time following such Notice of
estimated Installment Expenses, the Parties shall promptly confirm in writing a revision of Schedule 4.5 applicable to the next succeeding calendar year reflecting Landlord’s reasonable estimate. 

(iii) Within ninety (90) days after the end of each calendar year, Landlord shall provide a statement to Tenant showing:
(x) the amount of actual Installment Expenses by category of Installment Expense (i.e., Operating Expenses, CAM Expenses, etc.), for such year, with a listing of amounts for major items or categories of such Installment Expenses
(“Installment Expense Statement”) (in the event no expense information is available for a particular Installment Expense, Landlord will reasonably compute the amount of such Installment Expense and provide a general ledger
broken down by each individual Demised Premises and each category with which specific Installment Expenses apply and provide a copy of the Installment Expense Statement when such information becomes available), (y) any amount paid by Tenant
towards Installment Expenses during such calendar year on an estimated basis, and (z) any revised estimate of Tenant’s obligations for Installment Expenses for the current calendar year (the “Statement”). 

(iv) If the Statement shows that Tenant’s estimated payments were less than Tenant’s actual obligations for
Installment Expenses for such year, Tenant shall pay the difference. If the Statement shows an increase in Tenant’s estimated payments for the current calendar year, Tenant shall pay the difference between the new and former estimates for the
period from January 1 of the current calendar year through the month in which the foregoing Statement is sent, within thirty (30) days of Tenant’s receipt of the Statement. 

(v) If the Statement shows that Tenant’s estimated payments exceeded Tenant’s actual obligations for Installment
Expenses, Tenant shall receive a credit for the difference against payments of Installment Expenses next due. If the Term shall have expired and no further Rent shall be due, Landlord shall refund such difference when Landlord sends the Statement.

 (vi) At its option, Tenant may cause at any reasonable time, upon seven (7) days’ prior written notification to
Landlord and during normal 

  
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business hours in Landlord’s corporate office (but not more than once in any Lease Year), a complete review and audit to be made of Landlord’s invoices, bills and documentation
justifying the Installment Expenses and Tenant’s share of these costs. Tenant agrees that no contingency fee auditor shall be employed by Tenant for the purpose of conducting any such audit. Any overpayment by Tenant revealed by such audit
shall promptly be refunded by Landlord. In addition, if such an audit discloses that Tenant has been charged three percent (3%) or more in excess of the amount actually owed by Tenant, Landlord shall be responsible for and reimburse Tenant for
the reasonable cost of the audit within thirty (30) days of Tenant’s demand for the same with all supporting documentation. 

(vii) Landlord shall adjust the amount of Tenant’s estimated payments of Installment Expenses from time to time to
reflect a reduction in Tenant’s Proportionate Share promptly after any Actual Recapture Date, Actual Additional Space Termination Date, and/or other events which result in such reduction, retroactive to the date of such reduction in
Tenant’s Proportionate Share, and any overpayments of Installment Expenses based on such reduction shall be credited to the next installment(s) of Installment Expenses. 

(viii) Notwithstanding the foregoing, prior to the Multi-Tenant Occupancy Date, Installment Expenses shall not include, and
Tenant shall not make any monthly deposits for, any amounts for CAM Expenses, Utility Charges or Operating Expenses (it being understood that Tenant shall pay all such expenses directly to the party to whom they are due as and when due and the same
shall constitute Property Charges). 
 (c) On the Commencement Date, Tenant shall deposit with Landlord an amount equal to: (1) the
Installment Expenses that would have been payable on the first Business Day of the calendar month in which the Commencement Date occurs had the Commencement Date occurred prior to such date, ratably reduced for the number of days in such month prior
to the Commencement Date, plus (2) a portion of the reserves required on the Commencement Date under the Landlord Mortgage Documents in respect of Impositions in an amount equal to $23,064,975.69. 

ARTICLE V 
 NO
ABATEMENT 
 5.1 No Termination, Abatement, Etc. Except as otherwise specifically provided in this Master Lease,
Tenant shall remain bound by this Master Lease in accordance with its terms, and shall, under no circumstances, neither take any action without the written consent of Landlord to modify, surrender or terminate the same, nor seek or be entitled to
any suspension, abatement, deduction, deferment or reduction of Rent, or to any credit or set-off against, or any deposit in trust or escrow, or to enjoin the payment of, or otherwise obtain equitable relief with respect to, the Rent or any other
liabilities or obligations of Tenant hereunder, or any portion thereof. Without limiting the foregoing, except as may be otherwise specifically provided to the contrary in this Master Lease, the respective obligations of Landlord and Tenant shall
not be affected by reason of (i) any damage to or destruction of the Demised Premises or the Property or 

  
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any portion thereof from whatever cause or any Condemnation of the Demised Premises or any portion thereof; (ii) other than as a direct result of Landlord’s willful misconduct or gross
negligence, the lawful or unlawful prohibition of, or restriction upon, Tenant’s use of the Demised Premises or any portion thereof, or the interference with such use by any Person or by reason of eviction by paramount title; (iii) any
claim that Tenant has or might have against Landlord by reason of any default or breach of any warranty or representation by Landlord hereunder (if any) or under any other agreement between Landlord and Tenant or to which Landlord and Tenant are
parties, or by statute or law, or otherwise, or any breach of Landlord’s covenants or obligations under this Master Lease; (iv) any bankruptcy, insolvency, reorganization, consolidation, readjustment, liquidation, dissolution, winding up
or other proceedings affecting Landlord or Tenant or any assignee or transferee of Landlord or Tenant; or (v) for any other cause, whether similar or dissimilar to any of the foregoing, other than a discharge of Tenant from any such obligations
as a matter of law (and Tenant hereby waives and relinquishes any such right of discharge to the greatest extent now or hereafter permitted by law). Tenant hereby specifically and unconditionally further waives all rights arising from any occurrence
whatsoever which may now or hereafter be conferred upon it by law or in equity (a) to modify, surrender or terminate this Master Lease in whole or in part or quit or surrender the Demised Premises or any portion thereof (except with respect to
any Terminated Space), or (b) which may entitle Tenant to any abatement, reduction, suspension, deferment, stay or enjoining of the payment of the Rent or other sums payable by Tenant hereunder except in each case as may be otherwise
specifically provided to the contrary in this Master Lease. Notwithstanding the foregoing, nothing in this Article V shall preclude Tenant from bringing a separate action against Landlord for any matter described in the foregoing clause
(ii), with respect to Landlord’s willful misconduct or gross negligence only, (iii), (iv) or (v) but specifically excluding any matter referred to in clause (i), and Tenant is not waiving other rights and remedies not expressly waived
herein, subject to all other terms and conditions of this Master Lease (including without limitation Section 21.3). The obligations of Landlord and Tenant hereunder shall be separate and independent covenants and agreements, and the Rent
and all other sums payable by Tenant hereunder shall continue to be payable in all events unless the obligations to pay the same shall be terminated pursuant to the express provisions of this Master Lease or by termination of this Master Lease as to
all or any portion of the Demised Premises other than by reason of an Event of Default. 
 5.2 Assumption of Risk of Loss.
Without limiting any other provision of this Master Lease, the entire risk of loss or of decrease in the value, utility or fitness for use, or enjoyment and beneficial use of the Demised Premises as a consequence of (a) the damage or
destruction thereof in whole or in part by fire, the elements, casualties thefts, riots or civil unrest, wars, terrorism, or other traditional events of force majeure, (b) changes in applicable law, or changes in financial or economic
circumstances or conditions either generally or specifically applicable to Tenant, or other changes, (c) foreclosure, attachments, levies or executions, or (d) condemnation or eminent domain proceedings, in each and every case foreseen or
unforeseen, is unconditionally assumed by Tenant, and in no event shall entitle Tenant to any abatement of Base Rent or Additional Charges or any right to modify, amend, suspend or terminate this Master Lease. Notwithstanding the foregoing but
subject in all cases to Section 5.1, Tenant shall not be responsible for any gross negligence or willful acts of Landlord, or for any acts or omissions of Landlord or any Landlord’s tenants under the Leases or in the Recapture Space
first arising from and after the date of this Master Lease or the Actual Recapture Date, as the case may be. 

  
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 ARTICLE VI 

OWNERSHIP OF DEMISED PREMISES 

6.1 Ownership of the Demised Premises. (a) Landlord and Tenant acknowledge and agree that they have executed and delivered
this Master Lease with the understanding that (i) the Demised Premises is the property of Landlord as and to the extent conveyed pursuant to the Purchase Agreement; (ii) Tenant has only the right to the possession and use of the Demised
Premises upon the terms and conditions of this Master Lease; (iii) this Master Lease is a “true lease,” is not a financing lease, capital lease, mortgage, equitable mortgage, deed of trust, trust agreement, security agreement or other
financing or trust arrangement, or any other agreement or arrangement other than a “true lease,” and the economic realities of this Master Lease are those of a “true lease”; (iv) the business relationship created by this
Master Lease and any related documents is, and at all times shall remain, that of landlord and tenant, and shall not create or constitute the relationship of borrower and lender; (v) this Master Lease has been entered into by each party in
reliance upon the mutual covenants, conditions and agreements contained herein; and (vi) none of the covenants, conditions or agreements contained herein is intended, nor shall the same be deemed or construed, to create a partnership between
Landlord and Tenant, to make them joint venturers, to make Tenant an agent, legal representative, partner, subsidiary or employee of Landlord, or to make Landlord in any way responsible for the debts, obligations or losses of Tenant (except for
Landlord’s express obligations with respect to any Recapture Separation Work, Recapture Related Repairs or CAM Expenses which Tenant or an Affiliate of Tenant performs at Landlord’s request as provided in this Master Lease). 

(b) Each of the parties hereto covenants and agrees not to (i) file any income tax return or other associated documents; (ii) file
any other document with or submit any document to any Governmental Authority; (iii) enter into any written contractual arrangement with any Person; or (iv) release any financial statements, in each case, that takes a position that
(1) in general, asserts or could reasonably be construed to assert that this Master Lease is other than a “true lease” as well as an “operating lease” under GAAP, with Landlord as owner of the Demised Premises and Tenant as
the tenant of the Demised Premises, and (2) in particular, without limiting the generality of the foregoing, is inconsistent with the following positions: (x) the treatment of Landlord as the owner of such Demised Premises eligible to
claim depreciation deductions under Section 167 or 168 of the Code with respect to such Demised Premises, (y) the reporting by Tenant of its Rent payments as rent expense under Section 162 of the Code, and (z) the reporting by
Landlord of the Rent payments (including, to the extent permissible under applicable law, any Third-Party Charges that represent expenses of Landlord) as rental income under Section 61 of the Code. 

(c) Tenant waives any claim or defense under or with respect to this Master Lease with respect to or against any of the Demised Premises or
any Indemnified Parties based upon the characterization of this Master Lease as anything other than a true lease and as a master lease of all of the Demised Premises. Tenant stipulates, covenants and agrees (1) not to challenge or support or
consent to the challenge of the validity, enforceability or characterization of this Master Lease of the Demised Premises as a true lease and/or as a single, unitary, indivisible, nonseverable instrument pertaining to the lease of all, but not less
than all, of the Demised Premises, and (2) not to assert, take, omit to take, support or consent to any action inconsistent with the agreements and understandings set forth in Section 1.2 or this Section 6.1. 

  
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 6.2 Tenant’s Property. Tenant shall, during the entire Term, own (or lease,
subject to this Master Lease) and maintain (or cause its Subsidiaries to own (or lease, subject to this Master Lease) and maintain) on the Leased Premises adequate and sufficient Tenant’s Property, and shall maintain (or cause its Subsidiaries
to maintain) all of such Tenant’s Property in good order, condition and repair, in all cases as Tenant deems reasonably necessary and appropriate in the good faith exercise of its reasonable commercial judgment to operate the Stores for use as
a Sears Store or a Kmart Store (or as some other named or branded store as may be permitted under this Master Lease) in the ordinary course of business in compliance with all applicable licensure and certification requirements, all applicable Legal
Requirements and Insurance Requirements, and the terms and conditions of this Master Lease. If any of Tenant’s Property requires replacement to comply with the foregoing, Tenant shall replace (or cause a Subsidiary to replace) it with similar
property of the same or better quality at Tenant’s (or such Subsidiary’s) sole cost and expense. Subject to the foregoing, including replacement, Tenant and its Subsidiaries may sell, transfer, convey or otherwise dispose of Tenant’s
Property in their discretion in the ordinary course of its business and Landlord shall have no rights to such Tenant’s Property, so long as the same does not make or result in any Encumbrances on the Demised Premises. Tenant shall, upon
Landlord’s request from time to time, but not more frequently than one (1) time per Lease Year, provide Landlord with a substantially complete description of the material Tenant’s Property located at each of the Demised Premises other
than inventory, merchandise, and fixtures or equipment exclusively used for the purpose of retail sales and other than Tenant’s Property at any one (1) Demised Premises having (a) a value of less than Twenty-five thousand dollars
($25,000) as to any one item of Tenant’s Property or (b) an aggregate value of less than two hundred thousand dollars ($200,000) with respect to all items of Tenant’s Property in one (1) Demised Premises. Tenant shall remove all
of Tenant’s Property from the Demised Premises at the end of the Term (including all telecommunications cabling and any rooftop antennas or communications installations), except to the extent that Tenant has transferred ownership of such
Tenant’s Property to a Successor Tenant or Landlord. Tenant shall restore any and all damage from such removal. Without limiting the foregoing or any other rights or remedies of Landlord, any Tenant’s Property left on the Demised Premises
at the end of the Term whose ownership was not transferred to a Successor Tenant or Landlord shall be deemed abandoned by Tenant and shall become the property of Landlord. For the avoidance of doubt, Tenant’s Property will not constitute
Alterations or Leased Improvements. 
 ARTICLE VII 

CONDITION AND USE OF DEMISED PREMISES 

7.1 Condition of the Demised Premises. Tenant acknowledges receipt and delivery of complete and exclusive possession of the
Demised Premises, and complete delivery of the Common Areas subject to the provisions hereof with respect to Tenant’s use and possession prior to and after the Multi-Tenant Occupancy Date, and subject to the Permitted Encumbrances and the
Leases. Tenant acknowledges and confirms that for a substantial period prior to and up to and including the execution of this Master Lease, Tenant’s Parent and/or its Subsidiaries have been in continuous ownership and possession of the Demised
Premises, Tenant is fully familiar therewith, and has examined and otherwise has knowledge of the condition of the Demised Premises prior to the execution and delivery of this Master Lease and has found the same to be in good order and repair and,
to the best of Tenant’s knowledge, subject to the normal use and operation of SACs in the ordinary course of business, free from Hazardous Substances not in compliance with Legal 

  
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Requirements and satisfactory for its purposes hereunder. Regardless, however, of any knowledge, examination or inspection made by Tenant and whether or not any patent or latent defect or
condition was revealed or discovered thereby, Tenant is leasing the Demised Premises “as is,” “where is” and “with all faults” in its present condition. Tenant hereby irrevocably, unconditionally and absolutely waives
and relinquishes any claim or action against Landlord whatsoever in respect of the condition of the Demised Premises, including any patent or latent defects or adverse conditions not discovered or discoverable or otherwise known or unknown by Tenant
as of the Commencement Date. 
 LANDLORD MAKES NO WARRANTY OR REPRESENTATION, EXPRESS OR IMPLIED, IN FACT OR IN LAW, IN RESPECT OF THE
DEMISED PREMISES OR ANY PART THEREOF, EITHER AS TO ITS FITNESS FOR USE, DESIGN OR CONDITION FOR ANY PARTICULAR USE OR PURPOSE OR OTHERWISE, OR AS TO THE NATURE OR QUALITY OF THE MATERIAL OR WORKMANSHIP THEREIN, OR THE EXISTENCE OF ANY HAZARDOUS
SUBSTANCE, IT BEING AGREED THAT ALL SUCH RISKS, KNOWN AND UNKNOWN, LATENT OR PATENT, ARE TO BE BORNE SOLELY BY TENANT, INCLUDING ALL RESPONSIBILITY AND LIABILITY FOR ANY ENVIRONMENTAL REMEDIATION AND COMPLIANCE WITH ALL ENVIRONMENTAL LAWS. THE
FOREGOING SHALL NOT LIMIT ANY EXPRESS COVENANTS OR OBLIGATIONS OF LANDLORD CONTAINED ELSEWHERE IN THIS MASTER LEASE. 
  

			
	Tenant’s Initials:    		Landlord’s Initials:    

 Without limiting the foregoing, Tenant realizes and acknowledges that factual matters now unknown to it may
have given or may hereafter give rise to losses, damages, liabilities, costs and expenses that are presently unknown, unanticipated and unsuspected, and Tenant further agrees that the waivers and releases herein have been negotiated and agreed upon
in light of that realization and that Tenant nevertheless hereby intends to release, discharge and acquit Landlord and all Indemnified Parties from any and all such unknown losses, damages, liabilities, costs and expenses. In furtherance of this
intention, Tenant hereby expressly waives any and all rights and benefits conferred upon it by the provisions of California Civil Code Section 1542, which provides as follows: 

“A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF
EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.” Tenant acknowledges that all of the foregoing acknowledgments, releases and waivers, including the waiver of the
provisions of California Civil Code Section 1542, were expressly bargained for with the advice of counsel. 
  

			
	Tenant’s Initials:    		Landlord’s Initials:    

 7.2 Use of the Demised Premises; Permitted, Prohibited and Restricted Uses. (a) Subject to
the provisions of Sections 7.3 and 9.3, Tenant shall use, or cause to be used, the Demised Premises primarily for the operation of (i) a Kmart Store with respect to the Kmart Stores and (ii) a Sears Store with respect to
the Sears Stores and for all other lawful uses 

  
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incidental thereto (including without limitation all Subleases) in accordance with all Legal Requirements and for no other use or purpose whatsoever, subject to Tenant’s operating covenant
herein, and further subject to all use restrictions and/or exclusives which affect the Demised Premises contained in any Encumbrances; provided, however, that Landlord shall have the right in its discretion to include any or all of the same
restrictions and/or exclusives as are in existence as of the date hereof but not any new restrictions and/or exclusives that would limit Tenant’s use of the Demised Premises as permitted under this Master Lease without Tenant’s consent),
in any amended or new Lease for the benefit of the tenants thereunder, and Tenant agrees to abide by all such same restrictions and/or exclusives; provided, further, however, that subject to all Legal Requirements, Insurance Requirements and all
Encumbrances, all such restrictions and/or exclusions, and all other provisions of this Master Lease, Tenant (or any successor permitted pursuant to Section 9.3) shall (on not less than sixty (60) days’ Notice to Landlord of its
intention to do so) have the right at any time and from time to time, to change (i) the name or branding of any Store, provided, that such change of name or branding is the same as the name or branding for all or substantially all of the Sears
or Kmart stores, as applicable, nationally in operation at the time (and in the case of any permitted Transfer, such change in branding or name to take effect not later than sixty (60) days after giving effect to any such permitted Transfer),
or such changed name or branding includes the “Sears”, “Kmart” or “Shop Your Way” brand or name or abbreviations or derivatives thereof (including by way of example only and not by way of limitation, “K” or
“Big K”) and (ii) the primary use of any Store to any other retail use (x) that is within the principal retail uses of such Store as of the Commencement Date or that is a natural outgrowth or reasonable extension,
modification development or expansion of any such use or reasonably related, incidental, complementary or ancillary thereto (including, without limitation, any modified department store format or evolution thereof that takes account of changing
markets, technology or condition), or (y) that is not within the uses described in clause (x)(ii), but which is undertaken as part of a change to the use of all or substantially all of the Sears or Kmart stores, as applicable, regionally within
the region (within the United States) of any affected Demised Premises in operation at the time (collectively, in (i) and (ii), “Rebranding and/or Alternative Retail Use”). It is agreed that the foregoing use and restriction
on use is a material inducement to Landlord entering into this Master Lease and that Landlord would not enter into this Master Lease without this inducement. To the extent there are costs or expenses for or in connection with complying with Legal
Requirements resulting from or associated with the occupancy or operation of the Demised Premises, including, without limitation, fire detection and suppression systems, or environmental equipment or any environmental compliance and remediation, all
such costs and expenses shall be borne solely by Tenant. Tenant, at its sole expense, shall keep the Demised Premises clean and tidy at all times, free of debris, trash, rubbish, leaves, ice and snow, and in accordance with all Legal Requirements
and Insurance Requirements, and shall immediately cause any Hazardous Substances emanating from, in, under or onto the Demised Premises to be promptly reported, cleaned and removed by licensed contractors and deposited in licensed facilities in
accordance with all applicable Environmental Laws. Tenant shall use the Demised Premises and all parking and common areas only as provided by and in accordance with all Encumbrances, subject to Landlord’s reservation of rights herein. 

  
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 (b) From and after the Multi-Tenant Occupancy Date, Tenant’s use and occupancy shall be
further subject to the following: 
 (i) Landlord’s reasonable rules and regulations therefor as promulgated from time
to time; 
 (ii) In no event shall Tenant make any charge for parking to its customers or invitees; 

(iii) Except in Tenant’s year-round and/or seasonal ordinary course of business (including in parking areas and/or
sidewalks), Tenant shall not suffer or permit outside displays or advertising, storage or sales of materials or, merchandise, or storage equipment or commercial vehicles (other than vehicles of the Home Services Affiliate of Tenant and/or other
Tenant vehicles and other than in the Environmental Ordinary Course of Business), or overnight outside parking of vehicles in connection with Tenant’s activities at the Demised Premises (other than parking of vehicles of the Home Services
Affiliate of Tenant and/or other Tenant vehicles, and with the exception of parking in areas designated by Tenant for “early-bird” or other customers dropping off or picking up vehicles left for service at any SAC, or with respect to any
vehicles in connection with any vehicle rental business, including customer cars, in each case prior to or after normal business hours); 

(iv) Deliveries to the Demised Premises by vendors, contractors and suppliers (including loading and unloading) shall be at
such times and otherwise subject to such reasonable rules and regulations established by Landlord from time to time; provided, however, that Tenant may continue to permit deliveries in accordance with its customary practices as in
effect on the date hereof with respect to the Kmart Stores and the Sears Stores, subject to the provisions of Section 1.7(j); and 

(v) Uses as permitted in Section 10.2(a)(ii). 

(c) Notwithstanding anything to the contrary, Tenant shall not use or permit the Demised Premises (or part thereof), to be used, directly or
indirectly, for any use that would violate any Legal Requirements or for any of the Prohibited Uses set forth in Exhibit B attached hereto. Landlord covenants and agrees that it shall not use or permit the use by others of any
Property that would violate any of the Prohibited Uses designated in Exhibit B as applicable to Landlord. 
 (d) Tenant shall
not commit, or suffer to be committed, any waste on the Demised Premises or cause or permit any nuisance thereon. 
 (e) Tenant shall
neither suffer nor permit the Demised Premises or any portion thereof to be used, or otherwise act or fail to act, in such a manner as (i) might reasonably tend to impair Landlord’s title thereto or to any portion thereof, (ii) may
make possible a claim of adverse use or possession, or an implied dedication of the Demised Premises or any portion thereof, or (iii) may subject the Demised Premises or this Master Lease to any Encumbrances, other than Permitted Encumbrances.

  
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 7.3 Operating Covenant. (a) Subject to Tenant’s termination rights with
respect to each Nonprofitable Property, or any other termination of this Master Lease with respect to any individual Demised Premises or all of the Demised Premises prior to the expiration of the Term, in accordance with the terms of this Master
Lease, and subject to the provisions of Section 7.3(b) except in instances of casualty or condemnation during the period reasonably required for restoration, or for consecutive periods not to exceed one hundred twenty (120) days in
connection with Alterations and other repairs subject to extension for Force Majeure, or for such other periods as Tenant reasonably determines in good faith are reasonably required in connection with the separation and division of any Recapture
Property and/or Additional Recapture Space (in each case subject to Landlord’s reasonable approval), Tenant covenants and agrees to and shall continuously operate the retail business of each Sears Store as a Sears store and of each Kmart Store
as a Kmart store (including, in part, by means of the Subleases) subject to and in accordance with the use provisions of Section 7.2, stocked and staffed as is generally consistent with Tenant’s applicable regional practices in the
ordinary course of business (subject to any additional applicable terms and conditions of this Master Lease, including Section 7.3(b)), subject to any Rebranding and/or Alternative Retail Use (subject in all cases to all
applicable Legal Requirements), during such hours of operation as are generally consistent with those of similar national retailers further, subject to any additional hours as Tenant may determine in its discretion; provided, however,
that in no event shall Tenant be required to (but may in its discretion) operate during any hours which are longer or more restrictive than those (i) as currently operated by Tenant at each individual Demised Premises as of the Commencement
Date or as determined by Tenant at any individual Demised Premises from time to time with respect to holiday schedules, or (ii) of any other anchor tenant or the majority of the other tenants or occupants of the Property and the balance of the
Shopping Center from time to time. Tenant shall keep the Demised Premises (including all customer and service areas) in no worse condition than their current condition on the Commencement Date (subject to the repairs to be made in accordance with
Schedule 10.1 to the Side Letter. 
 (b) Notwithstanding the provisions of Section 7.3(a), if Tenant
determines in its discretion to partially cease business operations at up to 50% of the Gross Leasable Square Footage (“50% Go Dark”) at any individual Demised Premises (each a “50% Go Dark Property”
and collectively, “50% Go Dark Properties”), Tenant shall have the right to do so for a period determined by Tenant in its discretion not to exceed twelve (12) calendar months (“50% Go Dark
Period”) from and after the date (“50% Go Dark Date”) set forth in a Notice of such intention, which notice shall describe in reasonable detail Tenant’s plan for the 50% Go Dark Period, including the manner
in which Tenant will satisfy the 50% Go Dark Operating Standard, given to Landlord not less than ninety (90) days prior to Tenant going dark (“50% Go Dark Notice”); provided, however, that during any one
(1) Lease Year in the aggregate there shall not be more than twenty (20) 50% Go Dark Properties in which Tenant has partially ceased business operations, it being understood and agreed that Tenant shall remain liable for each and every
obligation (including, without limitation the obligation to pay Base Rent and Property Charges which respect to all of such Demised Premises) under this Master Lease with respect to each such Demised Premises (“50% Go Dark
Property”), other than pursuant to this Section 7.3 from and after the 50% Go Dark Notice, subject to all of Tenant’s termination rights with 

  
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respect to a Nonprofitable Property. Tenant shall give Landlord not less than thirty (30) days’ Notice of its intention to resume full business operations on or before the expiration of
the applicable 50% Go Dark Period. For the avoidance of doubt, Tenant’s election to 50% Go Dark with respect to an individual Demised Premises (i) shall not be deemed to be a default or an Event of Default under this Master Lease, and
(ii) Tenant’s election to 50% Go Dark with respect to such Demised Premises shall not disqualify such Demised Premises from being treated as a Nonprofitable Property in accordance with the terms of Section 1.6, at any time
during the 50% Go Dark Period or thereafter. By way of example and not by way of limitation, if Tenant is precluded from exercising its right to terminate this Master Lease with respect to a Nonprofitable Property by reason of the Nonprofitable
Property Limitation and thereafter elects to 50% Go Dark with respect to such Nonprofitable Property, at such time as the Nonprofitable Property Limitation ceases to apply thereto, Tenant may exercise such right of termination at any time
(x) during the 50% Go Dark Period and (y) after the expiration of the 50% Go Dark Period and any resumption of business operations, without further certification of any financial data with respect to such Nonprofitable Property. Tenant shall
operate each 50% Go Dark Property such that it will retain during the entire 50% Go Dark Period the look, feel and consistency of a fully operating Sears Store or Kmart Store to minimize the impact of the 50% Go Dark on customers and the operations
of the Store (the “50% Go Dark Operating Standard”). 
 7.4 Signs. The size, color, design, location
and specifications with respect to all exterior signs, and all interior signs which may be viewed from the exterior of any Property, whether ground mounted, pylon, window, door or building, mounted or otherwise, to be located on the Demised Premises
or any other portion of any shopping center of which the Demised Premises may be a part shall be submitted for and subject to the prior written approval of Landlord not to be unreasonably withheld or delayed (and any other required persons under any
REAs or other Encumbrances), and shall comply with all Encumbrances and all Legal Requirements. In each instance where approval of any signage is requested, Tenant shall submit its proposed sign plan to Landlord’s Director of Real Estate (or
any other Person designated by Landlord from time to time) for approval at least forty-five (45) days, or fifteen (15) days prior to the required date for submission pursuant to any REAs or other Encumbrances, as applicable, whichever is
earlier, prior to the date Tenant plans to erect any such signs. Notwithstanding the foregoing, Tenant may continue to maintain all signage and banners in existence as of the date hereof and otherwise in the ordinary course of business (including
existing exterior and new interior signage for Subleases in the ordinary course of business, including for auto rental, dental and optician licensed businesses) complies with all Legal Requirements from time to time and Encumbrances, and to replace
the same with substantially similar signage without Landlord’s consent. Further notwithstanding the foregoing, all signage on or with respect to any Recapture Space shall be determined by Landlord in its sole discretion, so long as the signage
(a) does not materially adversely affect (by way of altering, diminishing, obscuring or impairing) the visibility of (except de minimis impairments of visibility) the signage of the Store as of the date hereof, and is otherwise
generally consistent in style and appearance with either (i) the signage in the Store and/or the premises subject to the Leases at the time of installation of said other signage, or (ii) the signage customarily used by any Landlord’s
tenant in the majority of the other locations of such tenant, (b) is the same or substantially the same as the signage on any Third-Party Lease Improvements as of the date hereof, or (c) is required to comply with Legal Requirements. 

  
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 7.5 Multi-Tenant Occupancy Date. Notwithstanding the provisions of
Sections 7.3 and 7.4 or any other provisions contained in this Master Lease to the contrary, subject to all Legal Requirements and Encumbrances and restrictions/exclusives (if any), (a) until the occurrence of the
Multi-Tenant Occupancy Date, (i) Tenant shall be free to operate each individual Demised Premises during such hours and in such commercially reasonable manner as it shall determine, in its sole discretion, consistent with its operating
covenant, and (ii) Tenant shall be free to maintain and/or alter or change any signage in its discretion, and (b) at all times during the Term Tenant shall be free to operate each individual Demised Premises in such manner and with such
signage as is consistent with the historical operation of Kmart and Sears Stores and/or its ordinary course of business (subject to any Rebranding and/or Alternative Retail Use). 

ARTICLE VIII 

ALTERATIONS 
 8.1
Alteration and Additions. (a) Tenant, at its own sole cost and expense, shall make all alterations, renovations, modifications, additions or improvements to the improvements located at any Property
(“Alterations”), all as may be required by Legal Requirements or Insurance Requirements, or any Encumbrances, subject to customary contest provisions, or as required to comply with its repair, maintenance or other obligations
in this Master Lease, and Landlord’s consent shall not be required to make any such Alterations; provided, that Tenant shall give Landlord prior Notice (except in an emergency) of all such Alterations costing in excess of one hundred
thousand dollars ($100,000) in any one (1) instance with respect to an individual Demised Premises, together with copies of all material plans, specifications and permits therefor, and provided, further, that Tenant shall comply
with Schedule 1.7(j)(ii). 
 (b) Tenant shall also have the right to make nonstructural Alterations (including
Alterations to nonmaterial components of nonmajor building systems) as needed to keep up with changes in or the requirements of its operations (so long as the same do not adversely affect the value or structural integrity of the Demised Premises, or
interfere with or adversely impact any premises demised under any Leases or any Recapture Space, or materially increase the cost of any Recapture Separation Work unless Tenant bears the entire cost of any such increase or conflict with or require
consent under any Legal Requirements or Encumbrances (each, an “Adverse Impact”)), without Landlord’s consent, upon prior Notice to Landlord, including copies of all plans and specifications therefor; provided,
however, that if the Alterations have an aggregate cost in excess of two hundred fifty thousand dollars ($250,000) with respect to any individual Demised Premises in any Lease Year, then Landlord may require Tenant to remove the same at the
expiration or termination of the Lease, as provided below. All Alterations costing in excess of one hundred thousand dollars ($100,000) in any one (1) instance with respect to an individual Demised Premises, whether or not requiring
Landlord’s consent, shall be made and shall comply with the construction and insurance requirements in Schedule 1.7(j)(ii) attached hereto, and other customary procedures. If Landlord’s consent is required pursuant to
this Section 8.1, such consent shall not be unreasonably withheld, conditioned or delayed by Landlord so long as there is no Adverse Impact. 

Prior to making any nonstructural Alterations with a cost in excess of two hundred fifty thousand dollars ($250,000) in any one
(1) instance with respect to an in individual Demised Premises, Tenant shall give Landlord Notice in reasonable detail of Tenant’s proposed 

  
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Alterations, and in such event Landlord shall give Notice to Tenant within ten (10) Business Days after receipt of Tenant’s such Notice whether removal and restoration of such
Alterations would be required at the end of the Term. If Landlord requires or is deemed to require such removal and restoration by Tenant, Tenant shall be required to remove and restore any such Alterations as provided in Section 8.2.
Landlord’s failure to provide such Notice within ten (10) Business Days after receipt of Tenant’s Notice shall be deemed to be a Notice by Landlord to Tenant that such removal and restoration is required. 

(c) So long as no Adverse Impact shall result from such Alterations, Tenant may make structural Alterations or Alterations to material
components of building systems (i) prior to the Multi-Tenant Occupancy Date with Landlord’s consent, not to be unreasonably withheld, and (ii) after the Multi-Tenant Occupancy Date, with Landlord’s consent which may be withheld
in Landlord’s sole discretion. 
 8.2 Title to Alterations. Tenant will retain title to all Alterations so long as such
Alterations are not financed by Landlord or are not required by Legal Requirements or Insurance Requirements. Title to all Alterations that are financed by Landlord or are required by Legal Requirements or Insurance Requirements will vest in
Landlord automatically upon the completion thereof. At the expiration or sooner termination of this Master Lease, with respect to the particular Demised Premises, Tenant shall (a) remove all Alterations which Tenant is required to remove in
Section 8.1, and (b) have the right, at its election, to either remove all other Alterations to which it retains title as provided above and repair all damage to the Demised Premises caused by such removal, or to surrender the
Alterations to Landlord, free and clear of all claims, right, title and interest of Tenant. Any Alterations not so removed by Tenant shall conclusively be deemed to be Landlord’s sole property and title thereto shall automatically vest in
Landlord after such nonremoval and Landlord may retain or dispose of the same in its discretion without any accountability to Tenant; provided, however, that notwithstanding any surrender of the Demised Premises or the Alterations,
Tenant shall remain liable to Landlord for all unrepaired damage as a result of any removal of Alterations and all of Landlord’s reasonable costs of such removal with respect to any such nonremoval. 

ARTICLE IX 
 TRANSFER

 9.1 Transfer; Subletting and Assignment. Except as otherwise expressly provided herein (including, without
limitation, Article XV), Tenant shall not, without Landlord’s prior written consent (which consent may be withheld in Landlord’s sole and absolute discretion) Transfer this Master Lease or the Demised Premises, or any rights of
Tenant or any interest of Tenant therein, including any subletting of part or all or any part of the Demised Premises, or engage the services of any Person (other than an Affiliate of Tenant) for the management or operation of any Demised Premises
(as to which management services Landlord’s consent shall not be unreasonably withheld, conditioned or delayed. Any assignment or Transfer of any rights or interests in violation of this Article IX is ipso facto null and void and
of no force or effect. Tenant acknowledges and agrees that the foregoing restrictions on Tenant’s rights of Transfer are consistent with and integral to the protection and implementation of Landlord’s rights to the Recapture Space and
Additional Recapture Space and that the Rent and the other terms and conditions of this Master Lease have been expressly negotiated based upon and taking into 

  
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account the foregoing restrictions on Tenant’s rights of Transfer, and that Landlord is relying upon the expertise of Tenant in the operation of each Store and that Landlord entered into
this Master Lease with the expectation that Tenant would remain in and operate each Store during the entire Term (except for such express rights of termination by Tenant, or recapture or buy-out by Landlord, or limited rights of Tenant, as set forth
herein) and for those reasons, among others, except as set forth herein, Landlord retains sole and absolute discretion in approving or disapproving any assignment or sublease or other Transfer not expressly permitted hereunder. Tenant acknowledges
and agrees that the foregoing restrictions on Transfer are reasonable and have been specifically negotiated and bargained for between the parties and are an essential part of the economics of this Master Lease, and are a material inducement to
Landlord to enter into this Master Lease. 
 9.2 Permitted Subletting. Tenant shall not have any right to lease, sublease,
license or otherwise permit the use or occupancy of any space on or within any Property, except for: (a) the Lands’ End Agreements; (b) the Sears Hometown License Agreement; and (c) leases, licenses, concessions or in-store
department agreements with third-party retailers, concessionaires, tenants or licensees that (i) operate wholly within or as part of Tenant’s Store with respect to any Demised Premises (except for storage or parking of vehicles in
connection with vehicle rentals), do not operate separate or apart from the operations of the applicable Kmart Stores and/or Sears Stores, do not violate or conflict with any Encumbrance or any use restrictions and/or exclusives which affect the
Demised Premises as of the time of the Commencement Date and which are generally consistent with historical practices at the Stores or otherwise consistent with the permitted uses of Section 7.2 (the leases, licenses, concessions and
other agreements in clauses (a), (b) and (c), individually, a “Sublease,” and collectively, the “Subleases”); provided that in the case of the Subleases described in part (c) of this
sentence, (i) (x) Tenant shall use commercially reasonable efforts to give Notice to Landlord of each new Sublease executed after the Commencement Date within thirty (30) days of the execution thereof and prior to the commencement of
occupancy by the sublessee; provided, however, Tenant shall not be in breach or default of the foregoing obligation to provide Notices of Subleases if it provides a list of Subleases entered into since the last Notice to Landlord
within fifteen (15) days of Landlord’s written request therefor given not more frequently than once in any calendar quarter during the Term, and (y) Tenant shall give Notice to Landlord of each new Sublease to the extent not
previously provided, as part of the quarterly reports provided in Section 21.24(a) to the extent of the actual knowledge of such Subleases by the person preparing and signing such quarterly report, and (ii) such Sublease shall be
expressly subject to the rights of any other Leases existing as of the Commencement Date which were entered into prior to the execution of such Sublease and to other Encumbrances affecting the Property as of the date such Sublease is entered into.
For the purposes of this Section 9.2 only, “Encumbrance” shall include any Landlord Mortgage solely with respect to the lien thereof. 

9.3 Permitted Assignments. Notwithstanding the foregoing, Tenant may, without Landlord’s prior written consent:
(a) assign this Master Lease to Tenant’s Parent or any Subsidiary thereof; or (b) assign or transfer all of its rights and obligations under the Master Lease (either directly or indirectly, by operation of law or through a merger or
other corporate transaction) to any other solvent corporation, partnership, limited liability company or other legal entity that (1) acquires all or substantially all of the assets of Tenant’s Parent, (2) is the surviving entity of a
merger with Tenant’s Parent, or (3) results from a consolidation, reorganization or 

  
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recapitalization of Tenant’s Parent with a solvent corporation, partnership or other legal entity, in each case of subclauses (1), (2) and (3), provided the surviving entity has a net worth
of not less than the net worth of Tenant’s Parent as of immediately prior such merger or other corporate transaction, after giving effect to any financing provided or contemplated in such merger or corporate transaction; provided, that
in each case the successor tenant or successor Tenant Party (if not the named Tenant herein, the “Unrelated Successor Tenant”) assumes all of such Tenant’s obligations under the Master Lease (except that any such
Unrelated Successor Tenant shall not be required to operate a “Sears” or “Kmart” Store, but shall otherwise comply with all of the provisions of Sections 7.2 and 7.3). In the case of any such assignment,
(x) each Lease Guarantor (or the successor to each Lease Guarantor) shall reaffirm the Lease Guaranty (if it is not the successor to Tenant under the Master Lease) in a written instrument for the express benefit of Landlord in form and content
reasonably satisfactory to Landlord and Landlord shall receive a fully executed copy thereof, (y) the use of the Demised Premises, except as expressly set forth above, shall continue to comply with the requirements of this Master Lease,
including without limitation all rights of Landlord and all obligations of Tenant with respect to the Recapture Space, Additional Recapture Space and the 100% Recapture Property and (z) with respect to subdivision (b) above, if the
identity and creditworthiness of the successor tenant and successor Lease Guarantor shall be subject to the reasonable approval of Landlord and Landlord Mortgagee. 

9.4 Required Assignment and Subletting Provisions. Any permitted assignment and/or Sublease entered into after the Commencement
Date must provide in the assignment or Sublease document that: 
 (a) in the case of a Sublease, it shall be subject and subordinate to all
of the terms and conditions of this Master Lease, including any Landlord Mortgage Documents; 
 (b) the use of the applicable Store (or
portion thereof) shall not conflict with any Legal Requirement or any other provision of this Master Lease; 
 (c) except as otherwise
provided herein, no subtenant or assignee shall be permitted to further sublet all or any part of the applicable Demised Premises or assign this Master Lease or its Sublease or otherwise Transfer any interest in any of the foregoing; 

(d) Tenant shall insert in each permitted Sublease entered into after the Commencement Date provisions to the effect (and shall advise all
parties thereto in writing with respect to all permitted Subleases entered into prior to the Commencement Date) that (A) in the event the Master Lease shall expire or otherwise terminate for any reason with respect to the Property of which the
Sublease is a part before the expiration of such Sublease, the Sublease shall automatically terminate without further notice or action of any kind and the subtenant under the Sublease shall immediately surrender possession of the premises under the
Sublease to Landlord or as directed by Landlord, and (B) if the subtenant receives a written notice from Landlord or Landlord’s assignees, if any, stating that an Event of Default has occurred, so long as the Master Lease is not terminated
with respect to the Property of which the Sublease premises is a part, the subtenant shall thereafter attorn to the applicable party and be obligated to and shall pay all rentals and all other sums and charges accruing under said Sublease directly
to the party giving such notice, or as such party may direct, without any action of or any liability to Tenant. 

  
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 9.5 Costs. Tenant shall reimburse Landlord for Landlord’s reasonable costs and
expenses (including reasonable attorneys’ fees) incurred in conjunction with the processing and documentation of any assignment or subletting, Sublease or assignment that is actually consummated. 

9.6 No Release of Tenant’s Obligations. No assignment or subletting shall relieve Tenant or subsequent transferee of its
obligation to pay the Rent and to perform all of the other obligations to be performed by Tenant hereunder, except as expressly provided herein. The liability of Tenant and any immediate and remote successor in interest of Tenant (by assignment or
otherwise), and the due performance of the obligations of this Master Lease on Tenant’s part to be performed or observed, shall not in any way be discharged, excused, released or impaired by any (i) stipulation which extends the time
within which an obligation under this Master Lease is to be performed, (ii) waiver of the performance of an obligation required under this Master Lease that is not entered into for the benefit of Tenant or such successor, or (iii) failure
to enforce any of the obligations set forth in this Master Lease; provided, that Tenant shall not be responsible for any additional obligations or liability arising as the result of any modification, amendment or renewal of this Master Lease
by Landlord and any assignee of Tenant that is not an Affiliate of Tenant. For the avoidance of doubt, all rights and options of Landlord and obligations of Tenant with respect to any Nonprofitable Property, Recapture Space or Additional Recapture
Space, and all obligations of Tenant pursuant to the exercise of any options with respect to any Renewal Terms, shall continue to apply to Tenant with full force and effect and Tenant shall be fully liable with respect thereto. 

9.7 No Restriction on Landlord. Notwithstanding any provision herein to the contrary, Landlord shall be free in its sole
discretion, and there shall be no restriction, limitation or requirement whatsoever on or with respect to, Landlord’s rights, to use, operate, occupy, re-lease, sublease or license, alter, add to, modify or maintain, to refrain from doing,
suspend or cease any of the foregoing, or to leave vacant, any Recapture Space in whole or in part. 
 9.8 Free-Standing SAC
Leases. (a) Notwithstanding any provisions to the contrary in this Master Lease, at any time prior to or within thirty (30) days of receipt of an Additional Recapture Termination Notice, Tenant may give notice to Landlord
(“Tenant Free-Standing SAC Notice”) (limited to one (1) Tenant Free-Standing Notice in any twelve (12)-month period) that Tenant has entered or is considering entering into good faith negotiations (“SAC
Negotiations”) with a prospective acquiror with respect to a bona fide third-party offer to acquire from Tenant the automotive care center business operated by Tenant at not less than 20% of the Free-Standing SACs which are part of the
Demised Premises at the time of and as to the Demised Premises identified in such Tenant Free-Standing SAC Notice. In such event, Landlord shall not have the right to recapture any Free-Standing SACs which are identified in such Tenant Free-Standing
SAC Notice for a period of one hundred twenty (120) days thereafter or until the termination of Tenant’s negotiations therefor, whichever is earlier. Upon Notice from Tenant (“SAC Definitive Agreement Notice”) that
Tenant has executed a definitive agreement (“SAC Definitive Agreement”) for the acquisition of the automotive care business at not less than 20% of such Free-Standing SACs (including all Free-Standing SACs identified in any
Landlord’s Additional Recapture Termination Notice) within such one hundred twenty (120)-day period, Tenant shall have the right to request that Landlord enter into negotiations for the Free-Standing SAC Lease as provided below; provided
that Landlord shall have approval rights, in its sole and 

  
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absolute discretion, over any Free-Standing SAC Lease. If (i) Landlord does not receive a SAC Definitive Agreement Notice within such one hundred twenty (120)-day period, or
(ii) Landlord is otherwise informed that Tenant has terminated all SAC Negotiations without a SAC Definitive Agreement within such one hundred twenty (120)-day period, or (iii) Landlord and the proposed SAC acquiror have not mutually
agreed upon and delivered a fully executed master lease with respect to all affected Free-Standing SACs as provided below on or before the Closing of the SAC Definitive Agreement, or (iv) Landlord has not approved the Free Standing SAC Lease,
then in any such event Landlord may at its election by Notice to Tenant at any time thereafter reinstate the Additional Recapture Space Termination Notice and/or give any additional or subsequent Additional Response Space Termination Notices and
specify a date for recapture of the Additional Recapture Space within sixty (60) days after such Notice. 
 (b) The SAC Definitive
Agreement shall provide: 
 (i) The Closing thereof shall occur not later than ninety (90) days after the execution of
the SAC Definitive Agreement. 
 (ii) At the Closing, the SAC acquirer (which shall be a creditworthy entity experienced in
the operation of automobile centers similar to the SACs, satisfactory to Landlord), as tenant, shall enter into a unitary, cross-defaulted master lease with Landlord, as landlord, with respect to all affected Free-Standing SACs, on such terms and
conditions which are mutually satisfactory to Landlord and such tenant in each of their sole discretion (“Free-Standing SAC Lease”). Upon the execution and delivery of any Free-Standing SAC Lease (if any), this Master Lease
shall terminate with respect to the affected Free-Standing SACs with the same force and effect as provided in Section 1.9(b)(iii). Nothing contained herein shall obligate Landlord to enter into any Free-Standing SAC Lease and Tenant
hereby releases and agrees to hold harmless Landlord, Landlord’s Mortgagee and any other Indemnified Persons with respect to any and all Liabilities arising out of any SAC Definitive Agreement or any refusal or failure to enter into any
proposed Free-Standing SAC Lease. 
 ARTICLE X 

MAINTENANCE AND COMMON AREAS 

10.1 Maintenance and Repair; Trade Fixtures. (a) During the Term, Tenant, at its sole cost and expense and without the
prior consent of Landlord, shall maintain the Demised Premises and Tenant’s Property, and except as provided in, and otherwise subject to, any REAs, all private roadways, sidewalks and curbs appurtenant to the Demised Premises or which are
under Tenant’s exclusive control, or under any REAs for which Tenant is responsible for compliance under this Master Lease, in good order and repair (ordinary wear and tear excepted) with the standard of care and quality taking into account the
age of the Demised Premises whether or not the need for such repairs occurs as a result of Tenant’s use, any prior use, the elements, or the age of the Demised Premises or Tenant’s Property, or otherwise (but excluding
(i) Landlord’s gross negligence or willful misconduct, or any affirmative acts in connection with work performed by Landlord with respect to any Recapture Space or Tenant Retained Space, and (ii) all acts and omissions of any of
Landlord’s Related Users in any Recapture Space or Additional 

  
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Recapture Space or under any Leases which first arise after the date of this Master Lease), and, with reasonable promptness, make all necessary and appropriate repairs thereto of every kind and
nature, including without limitation those necessary to ensure continuing compliance with all Legal Requirements, and Insurance Requirements, whether interior or exterior, structural or nonstructural, ordinary or extraordinary, foreseen or
unforeseen, or arising by reason of a condition existing at or prior to the Commencement Date; provided, however, that subject to all Legal Requirements and Insurance Requirements all such repairs shall only be required to be made to
the standards and the conditions existing as of the Commencement Date with respect to each Demised Premises, ordinary wear and tear excepted, with the standard of care and quality taking into account the age of the Demised Premises, and shall
otherwise be made in general conformity with Schedule 1.7(j)(ii) attached hereto; provided, further, however, that Tenant’s obligations under this Section 10.1 shall include the maintenance,
repair and replacement (a) at all times, of any and all building systems, machinery and equipment which exclusively serve the Demised Premises, (b) up to and including the Multi-Tenant Occupancy Date, of the bearing walls, floors,
foundations, roofs and all structural elements of the Demised Premises (and after the Multi-Tenant Occupancy Date, the obligations in this clause (b) shall be Landlord’s responsibility) and (c) to be made in accordance with
Schedule 10.1 to the Side Letter within one year of the Commencement Date. Tenant will not take or omit to take any action the taking or omission of which would reasonably be expected to (x) materially impair the value or the
usefulness of the Demised Premises or any part thereof, (y) create (or permit to continue) any dangerous condition or (z) create (or permit to continue) any condition which might reasonably be expected to involve any imminent loss, damage
or injury to any person or property; provided, that subject to Article XX, Tenant shall be entitled to operate SACs in accordance with Tenant’s usual and customary business practices in effect on the date of this Master
Lease, and in compliance with all Encumbrances, Legal Requirements and Insurance Requirements. In connection with the foregoing, Tenant’s obligations shall include without limitation with respect to the Demised Premises, including, prior to the
Multi-Tenant Occupancy Date, with respect to all Common Areas (and Landlord’s obligations with respect to all Common Areas, including all parking lots and parking areas, and landscaping not under the exclusive control of Tenant, after the
Multi-Tenant Occupancy Date shall include): 
 (i) Maintaining (including periodic washing and painting, as necessary, but
in no event shall any Party be required to paint more than once in any rolling 5-year period) and repairing the storefront, facade and exterior walls of the Demised Premises; provided, that any re-painting of a different color or any changes
to the exterior shall require Landlord’s prior written consent, which will not be unreasonably withheld, conditioned or delayed; 

(ii) Repairing and replacing, as necessary (in the same style and appearance), the doors (including, without limitation, any
overhead doors) and windows of the Demised Premises, and the mechanisms therefor; 
 (iii) Causing the regular removal of
garbage and refuse from the Demised Premises; 
 (iv) Causing the regular spraying for and control of insect, rodent, animal
and pest infestation, and maintaining in good working order and condition all doors (both swinging and roll-up doors), including, without limitation, all weather seals, so as to limit any gaps to  1⁄4 inch or less along the bottom and sides of all doors; 

  
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 (v) Servicing, maintaining, repairing and replacing all Fixtures; 

(vi) Regular sweeping, cleaning and removal of trash, debris, grease, oils, other materials and stains from the Demised
Premises and from the immediately adjacent sidewalks, service drives and loading or delivery areas, if any of the Demised Premises, as necessary to keep the same clean and in good order and condition (after the Multi-Tenant Occupancy Date Tenant
shall be responsible for such sidewalks, service drives and loading or delivery areas under the exclusive control of Tenant and Landlord shall remain responsible for the immediately adjacent and all other sidewalks, service drives and loading or
delivery areas and landscaping not under the exclusive control of the Tenant); 
 (vii) Regular sweeping, cleaning and
washing of the interior of the Demised Premises, including, without limitation, floors, windows and fixtures, and periodic washing and painting of interior walls; 

(viii) Repairing broken, damaged or leaking walls, bathrooms, roofs, or fixtures and equipment in the interior of the Demised
Premises, including, without limitation, plate glass windows, windows, floors and lighting fixtures, to the extent not covered by Landlord’s “All-Risk” insurance; 

(ix) Irrigating and performing all gardening and landscaping of all lawns, trees, shrubs and plantings immediately adjacent to
the Demised Premises and under the exclusive control of Tenant; 
 (x) Paving, repairing and striping of all parking areas
as reasonably required; and 
 (xi) In furtherance of the foregoing obligations to service, repair and maintain any Fixtures
during the Term, Tenant shall maintain a contract on at least an annual basis (which contract shall be approved by Landlord, such approval not to be unreasonably withheld) for regular servicing and maintenance (in accordance with their respective
manufacturing guidelines) of the heating, ventilating, air conditioning and vertical transportation systems that are part of the Fixtures in accordance with their manufacturing guidelines, unless Landlord shall otherwise direct (without additional
cost or expense to Tenant). Upon request (not more frequently than annually), Tenant shall submit to Landlord a copy of such fully paid contract and any extensions, renewals or replacements thereof. At a minimum, each maintenance contract for any
Fixtures shall include a provision that such contractor shall be required to coordinate any activities performed on the roof of the Demised Premises with Landlord’s or any tenant of Landlord’s activities, as the case may be, with/by a
roofing contractor, so as to not void any roof or related warranties. 
 (b) Except as otherwise expressly required elsewhere in this Master
Lease (including with respect to Landlord’s obligations from and after the Multi-Tenant Occupancy 

  
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Date), Landlord shall not under any circumstances be required to (i) build or rebuild any improvements on the Demised Premises; (ii) make any repairs, replacements, alterations,
restorations or renewals of any nature to the Demised Premises, whether ordinary or extraordinary, structural or nonstructural, foreseen or unforeseen, or to make any expenditure whatsoever with respect thereto; or (iii) maintain the Demised
Premises in any way. Except as otherwise expressly required elsewhere in this Master Lease, Tenant hereby unconditionally waives, to the fullest extent now or hereafter permitted by law, the right to make any repairs or perform any maintenance at
the expense of Landlord pursuant to any law in effect at the time of the execution of this Master Lease, or hereafter enacted. The foregoing shall not limit in any manner Landlord’s obligations to pay for, or to advance or reimburse Tenant for,
all costs and expenses of all Recapture Separation Work as provided in this Master Lease. 
 (c) Tenant shall, upon the expiration or
earlier termination of the Term, vacate and surrender the Demised Premises in the condition in which such Demised Premises was originally received from Landlord, except as repaired, rebuilt, restored, altered or added to as permitted or required by
the provisions of this Master Lease and except for ordinary wear and tear, and further subject to the provisions with respect to removal and restoration of Tenant’s Property and Alterations and remediation of all environmental conditions. 

(d) Notwithstanding the foregoing standards for Tenant’s repair and maintenance obligations, Tenant agrees to perform those items of
deferred repair and maintenance set forth on Schedule 10.1 to the Side Letter; provided, however, to the extent that Tenant shall fund any Landlord Mortgage reserve for work pursuant to
Schedule 10.1 to the Side Letter, Tenant’s obligation to perform such deferred repair and maintenance relating to such reserves shall be conditioned upon Landlord’s release of such funds (or an equivalent amount) to
Tenant on a timely basis in connection with the performance of such work so long as Tenant has complied with its obligations under Section 21.26. Notwithstanding the foregoing, to the extent funds have been released from such reserve but
are not sufficient to complete the deferred repair and maintenance in accordance with Schedule 10.1 to the Side Letter, Tenant shall remain obligated to complete such deferred repair and maintenance at Tenant’s sole cost and
expense. 
 10.2 Common Areas. (a) During the Term, until the occurrence of the Multi-Tenant Occupancy Date, Tenant shall
have the exclusive use and possession of all Common Areas (subject to all applicable provisions of this Master Lease, Legal Requirements and Encumbrances) and shall be solely responsible therefor, including all maintenance and repairs relating
thereto, and shall pay all CAM Expenses and all Property Document CAM Expenses, and the maintenance and repair obligations pursuant to Section 10.1. 

(i) From and after the Multi-Tenant Occupancy Date, Landlord shall operate and maintain (or cause to be operated and
maintained) the Common Areas located wholly within the Property in such a manner as Landlord, in its reasonable discretion, shall determine as being compliant with the Legal Requirements and Encumbrances, but subject to the terms and conditions of
this Master Lease relating to any conditions, rights or restrictions of Landlord’s and Landlord’s Related Users in the Common Areas located wholly within the Property, further subject to Tenant’s obligations in
Section 10.1(c). Tenant shall have a 

  
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nonexclusive right and license to use the Common Areas in common with Landlord, and their respective Related Users (including all of the same Persons with respect to the Recapture Space and
Additional Recapture Space), for the sole purposes of access, ingress, egress, loading and unloading, and parking, subject to the provisions of this Master Lease, all Encumbrances, and all applicable Legal Requirements and Insurance Requirements.
Tenant’s use of the Common Areas shall be subject to all rules and regulations set forth in the applicable Encumbrances (including, without limitation, any rights of any parties (including Landlord) to reconfigure or alter such Common Areas, at
any time and from time to time), and the reasonable, nondiscriminatory rules and regulations promulgated by Landlord in its discretion from time to time, including the designation of specific areas within Landlord’s premises or in reasonable
proximity thereto in which automobiles owned by Tenant’s Related Users shall be parked and to accommodate the reasonable requests and requirements of Landlord and Landlord’s Related Users, provided, that the same shall not increase
Tenant’s obligations or decrease Tenant’s rights or remedies under this Master Lease, in any material respect. Furthermore, Tenant covenants not to do or permit to be done any act in, on or about the Common Areas or the Demised Premises
which would interfere with the use or enjoyment of the premises demised under the Leases or any Recapture Space (or any adjacent shopping center, shopping mall or third-party owner’s property, as the case may be), or the Common Areas by
Landlord, its other tenants, authorized users and assigns, or the other owners, tenants, or occupants of any adjacent shopping center, shopping mall, as the case may be, or the respective agents, employees, customers, licensees and invitees of any
of the foregoing parties. 
 (ii) Subject to the provisions of any applicable Encumbrances, Legal Requirements and Insurance
Requirements and the terms and conditions set forth in this Section 10.2(a)(ii), subsequent to the Multi-Tenant Occupancy Date with respect to a Demised Premises, Tenant, Landlord and Landlord’s Related Users shall have the
right to (A) to utilize portions of the Common Areas for outdoor events, activities, shows, displays, temporary special promotional events, including sales from temporary facilities, and including carnivals, automobile and boat shows and sales,
sales of rugs, cars, spas, plants and antiques, tent sales, and National Safety Weekend events and other charity events (including charity walks); or (B) to utilize the lighting standards and other areas in the parking lot for advertising
purposes ((A) and (B) collectively, the “Promotional Rights”), subject to Landlord’s reasonable rules and regulations applicable to all tenants of the Property with respect to the manner of the exercise of such
Promotional Rights; provided, that (x) Tenant’s Promotional Rights shall include, and Tenant shall exercise Promotional Rights in a manner described in Section 10.2(a)(ii)(A) that is consistent with, the
historical practices of Tenant at that Store or that may be conducted on a regional basis with respect to an affected Store (including, without limitation, outdoor garden and/or patio shops), and such other uses in connection with the natural
evolution of Tenant’s generally permitted use of the Demised Premises (subject to Landlord’s reasonable approval of such other uses), and (y) Tenant shall not exercise any Promotional Rights in a manner (as opposed to the nature of
the use) that would reasonably be expected to have a material adverse 

  
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impact on Landlord or any third party tenant to whom Landlord has leased or licensed all or any portion of the Property other than the Demised Premises (“Third Party
Tenant”). Landlord shall have the right to grant Promotional Rights to any Third Party Tenant, provided, that, no such Promotional Rights shall be exercisable in a manner that would reasonably be expected to have a material adverse
impact on Tenant, Landlord or any other Third Party Tenant. Tenant, Landlord and Third-Party Tenants shall work cooperatively and in good faith to coordinate the exercise of the Promotional Rights in accordance with the foregoing provisions. 

(b) Party Walls. Tenant acknowledges and agrees that any walls now or hereafter separating the Demised Premises from any
premises demised under any Leases or any Recapture Space, if any, are party walls to be shared by Tenant with Landlord and the other tenants and occupants of the building in which the Demised Premises is located. Tenant hereby grants to Landlord,
and such other tenants and occupants, if any, and such persons hereby retain, the nonexclusive right to use such walls for all purposes for which they may be intended, or to such use by Landlord as may be desirable and/or convenient, including,
without limitation, utilities, maintenance and fixturing. Tenant hereby acknowledges and agrees that Landlord shall, at its expense (but without charge by Tenant), have the right, at any time and at all times throughout the Term, to install,
maintain, alter, repair and replace any cabling, conduit, utilities, venting, pipes, wiring and other items through and into the Demised Premises to serve or service any premises demised under the Leases or any Recapture Space or Additional
Recapture Space. Tenant shall receive not less than ten (10) days’ prior notice (except in case of an emergency) of any such use or work, and no such use or work shall materially interfere with Tenant’s normal business operations in
the Tenant Retained Space. To the extent reasonably required in connection with any Leases as of the date hereof or in connection with any separation of the Recapture Space, Tenant shall have all of the same foregoing rights in connection with the
Demised Premises and the Tenant Retained Space. Without limiting the foregoing, except in an emergency, Landlord shall use all reasonable efforts to avoid any material work in the Demised Premises during the period November 1-March 1 in
any calendar year. 
 (c) Common Area Maintenance. 

(i) Prior to the Multi-Tenant Occupancy Date, the Common Areas shall be maintained and operated by Tenant in accordance with
all of the provisions of this Lease, and in accordance with all Operating Agreements and other Encumbrances as such Operating Agreements and other Encumbrances apply to the Demised Premises, and Tenant shall pay all CAM Expenses (as hereinafter
defined). 
 (ii) From and after the Multi-Tenant Occupancy Date, Landlord shall perform and pay for all maintenance,
repairs and replacements to all Common Areas (“CAM Expenses”), including all parking lot fencing, striping, paving, lighting, fencing and drainage; snow, ice, rubbish and trash removal; irrigation, gardening and landscaping
services, with respect to all landscaped areas; and ordinary and customary building services, maintenance, cleaning and janitorial services, except such services and expenses which are separately performed and charged for under Encumbrances, and all
other items relating to Common Areas in Section 10.2(c)(i). 

  
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 (iii) Tenant shall pay as Additional Charges (as part of Tenant’s payments
of Installment Expenses), Tenant’s Proportionate Share of (x) all CAM Expenses and other Operating Expenses and (y) all CAM costs and expenses under all Operating Agreements (including those which are included in) and other
Encumbrances (“Property Document CAM Expenses”). Landlord shall include itemized statements of all Property Document CAM Expenses in the Statements. 

(iv) Notwithstanding any provision to the contrary in this Master Lease, except as may be expressly (I) provided in any
Lease in existence on the Commencement Date, or (II) now or hereafter authorized in Tenant’s sole discretion in connection with any Sublease, neither Landlord nor any Landlord’s Related User shall use or permit the use of, nor shall
any other tenant or occupant of the Property use, any dumpster, compactor, bin or other waste receptacle which is used, serviced or maintained by Tenant for the exclusive use with respect to the Demised Premises. 

(d) Tenant’s Building Alarm System. If and to the extent such system exists as of the Commencement Date or is installed by
Tenant at its discretion during the Term, Tenant shall, at its sole expense, install, operate and be responsible for maintaining, repairing and replacing an alarm system for each applicable Demised Premises (connected to its own electrical system).
Tenant shall be responsible for and shall not in any way connect, tie into or otherwise append the building alarm system for any Demised Premises to the alarm system for any physically separate premises demised under any Lease or any Recapture Space
or Additional Recapture Space. 
 (e) Operating Expenses. With respect to all Operating Expenses with respect to the Property
which are not otherwise provided for herein in accordance with Section 4.5, Tenant shall pay (i) prior to the Multi-Tenant Occupancy Date, one hundred percent (100%) of the cost thereof and (b) after the Multi-Tenant
Occupancy Date, Tenant’s Proportionate Share thereof. 
 10.3 Landlord’s Responsibility for Leasehold Improvements
Subsequent to Multi-Tenant Occupancy Date. Subject to the provisions of Section 10.2(e), from and after the Multi-Tenant Occupancy Date, and during the balance of the Term, Landlord shall maintain, repair and replace all of the
building systems, machinery and equipment, to the extent that the same do not exclusively serve the Demised Premises, and the bearing walls, floors, foundations, roofs and all structural elements of the Leased Improvements in accordance with the
Legal Requirements and Insurance Requirements. All costs and expenses incurred by Landlord pursuant to this Section 10.3 shall be included as part of Operating Expenses, and Tenant shall pay Tenant’s Proportionate Share thereof.

 10.4 Landlord’s Warranties and Guaranties. In connection with Tenant’s repair and maintenance obligations under
this Master Lease, Landlord agrees that Tenant shall have the benefit of, and Landlord shall use all commercially reasonable efforts to enforce (without any 

  
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obligation of Landlord to incur legal expenses or institute litigation, unless Tenant pays for all costs and expenses thereof, and holds harmless Landlord therefrom) all applicable warranties and
guaranties assigned to or otherwise held by Landlord during the Term; provided, however, that Tenant’s repair and maintenance obligations shall not be delayed, suspended or otherwise affected by the existence or nonexistence, or
any failure, refusal, delay in the performance, adequacy or payment or nonpayment, of any such warranty or guaranty (if any). 
 10.5
Tenant’s Responsibility under Lands’ End Agreements and Sears Hometown License Agreement. 
 (a) Landlord and Tenant
acknowledge that Sears, Roebuck and Co. (“SRC”), Kmart Corporation (“KMC”), Landlord and Tenant have entered into a certain letter agreement dated of even date herewith (the “LE-SHO Letter Agreement”) with
respect to the Lands’ End Lease as it relates to the Lands’ End Space and the Sears Hometown License Agreement as it relates to the Sears Hometown Space. Notwithstanding any provision to the contrary in this Master Lease, Tenant agrees
that (i) Tenant is, and shall cause SRC to be, solely responsible to perform and discharge all obligations of the landlord under the Lands’ End Agreements with respect to the Lands’ End Space, and Landlord shall not be responsible
therefor, and (ii) Tenant is, and shall cause KMC to be, solely responsible to perform and discharge all obligations of the landlord under the Sears Hometown License Agreement with respect to the Sears Hometown Space, and Landlord shall not be
responsible therefor, including without limitation all such obligations (if any) for or with respect to repair, maintenance (including common area maintenance) and alterations. Pursuant to the LE-SHO Letter Agreement, each of SRC and KMC have agreed
to, release and indemnify, defend and hold harmless Landlord from all costs, expenses and Liabilities arising from its failure to so perform (except as arising from Landlord’s gross negligence, willful misconduct or breach of the terms of this
Lease); provided that Landlord shall be liable for any relocation of the Lands’ End Space and Sears Hometown Space within any Demised Premises pursuant to any Recapture Separation Work. 

(b) Tenant hereby presently, absolutely and unconditionally assigns to Landlord, from and after the Commencement Date, (i) all of
Tenant’s right, title and interest in all current and future rents and the absolute, unconditional and continuing right to receive and collect all rent, and all taxes and other charges (if any) payable by Lands’ End under the Lands’
End Lease with respect to Lands’ End Space at the Demised Premises (collectively, the “LE Rents”) and (ii) all of Tenant’s right, title and interest in all current and future rents and the absolute,
unconditional and continuing right to receive and collect all rent, and all taxes and other charges (if any) payable by Sears Hometown under the Sears Hometown License Agreement with respect to Sears Hometown Space at the Demised Premises
(collectively, the “Hometown Rents”), it being intended by Tenant that this assignment constitutes a present, outright, immediate, continuing and absolute assignment of any and all LE Rents and Hometown Rents and not an
assignment for security nor an assignment of the Lands’ End Lease (except with respect to the Lands’ End Space) or the Sears Hometown License Agreement (except with respect to the Sears Hometown Space). In connection with such assignment,
Tenant, SRC and KMC shall direct that the LE Rents and Hometown Rents be paid directly to Landlord. Such assignment to Landlord shall not be construed to bind Landlord to the performance of any of the covenants, conditions or provisions contained in
the Lands’ End Lease or the Sears Hometown License Agreement or otherwise impose any obligation upon Landlord thereunder. 

  
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Notwithstanding the foregoing assignment of the LE Rents and Hometown Rents to Landlord, Tenant shall perform and discharge all obligations of the landlord under the Lands’ End Lease with
respect to the applicable Lands’ End Space and the Sears Hometown License Agreement with respect to the Sears Hometown Space. In furtherance of the foregoing assignment, pursuant to the LE-SHO Letter Agreement, each of Tenant and SRC have
agreed to direct Lands’ End and Sears Hometown, respectively, to pay directly to Landlord all LE Rents and Hometown Rents, and, in any event, if Tenant or Sears, Roebuck and Co. shall ever receive any LE Rent or Hometown Rent, Tenant shall (and
shall cause Sears, Roebuck and Co.), not later than three (3) Business Days following receipt, remit such LE Rent or Hometown Rent to Landlord or as Landlord shall direct. Tenant agrees to (and to cause Sears, Roebuck and Co. to) execute and
deliver to Landlord such additional instruments, in form and substance reasonably satisfactory to Landlord, as may hereafter be reasonably requested by Landlord to further evidence and confirm such assignment. In the event that Lands’ End or
Sears Hometown shall exercise any set-off rights against Tenant, Tenant’s Parent or any Subsidiary of Tenant’s Parent, or otherwise withholds LE Rent or Hometown Rent as a result of a default by Tenant, Tenant’s Parent or any
Subsidiary of Tenant’s Parent under any Lands’ End Agreement or Sears Hometown License Agreement, or in the event Lands’ End or Sears Hometown is stayed or otherwise prohibited from making LE Rent/Hometown Rent payments directly to
Landlord in the event of any insolvency proceeding of Tenant or Guarantor, Tenant shall be liable for and pay to Landlord, as Additional Charges, all such LE Rent and Hometown Rent at the times provided under the Lands’ End Lease and the Sears
Hometown License Agreement, respectively. 
 (c) Tenant agrees that it shall not amend, modify or terminate (or consent to the amendment,
modification or termination of) the LE-SHO Letter Agreement, the Lands’ End Agreements or the Sears Hometown License Agreement in any manner relating to the Properties, without the prior written consent of Landlord, such consent not to be
unreasonably withheld to the extent not adverse to Landlord or the Properties. 
 (d) For the avoidance of doubt, Tenant retains rights to
relocate Lands’ End Space as provided in the Lands’ End Agreements and all rights to terminate the Lands’ End Agreements in the event Tenant ceases business operations in the applicable Demised Premises as permitted in this Master
Lease (except Tenant shall not have the right to cause a termination of the Lands’ End Agreement in connection with a 50% Go Dark), or the Master Lease is otherwise terminated with respect to any individual Demised Premises; provided,
Tenant agrees that, other than pursuant to a Final Recapture Plan, it may not relocate Lands’ End Space within any Demised Premises except with the prior written consent of Landlord in its sole discretion, unless Lands’ End shall have
consented to such relocation in writing and a copy of such consent shall have been promptly delivered to Landlord and Landlord Mortgagee. 

(e) Upon the termination of the occupancy of any Lands’ End Space or Sears Hometown Space by Lands’ End or Sears Hometown at any
Demised Premises in accordance with the applicable Lands’ End Agreement, the Sears Hometown License Agreement, or otherwise, such Lands’ End Space or Sears Hometown Space (as applicable) shall be deemed to have been automatically
recaptured by Tenant and shall from and after the date of such termination be deemed a part of the Demised Premises demised to Tenant, subject in all respect to the terms and conditions of this Master Lease, including, without limitation, with
respect to the payment by Tenant of Base Rent and Additional Charges to Landlord with respect to such former Lands’ End Space. In such event, the amount of Base Rent shall be increased as provided on Schedule 2 to the Side Letter.

  
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 ARTICLE XI  

INSURANCE 
 11.1
General Insurance Requirements. During the Term, subject to Section 11.2(a), Tenant shall at all times keep the Demised Premises, and all property located therein or thereon, including the Leased Improvements, Fixtures and
Tenant’s Property, insured with the kinds and amounts of insurance described below, and otherwise as permitted in the Insurance Requirements. Each element of insurance described in this Section 11.1 shall be maintained with respect
to the Demised Premises and Tenant’s Property and the operations of each Store thereon. Such insurance shall be written by companies permitted to conduct business in the applicable State. All third-party liability type policies must name
Landlord as an “additional insured.” All property policies shall name Landlord as “loss payee” for its interests in each Property. All business interruption policies shall name Landlord as “loss payee” with respect to
Rent only. Property losses shall be payable to Landlord and/or Tenant as provided in Article XIV. In addition, the policies, as appropriate, shall name as an “additional insured” and/or “loss payee,” each holder of
any mortgage, deed of trust or other security agreement (“Landlord Mortgagee”) securing any Indebtedness or any other Encumbrance placed on the Demised Premises in accordance with the provisions of Article XIV
(“Landlord Mortgage”) by way of a standard form of mortgagee’s loss payable endorsement. Except as otherwise set forth herein, any property insurance loss adjustment settlement shall require the written consent of
Landlord, Tenant and each Landlord Mortgagee (to the extent required under the applicable Landlord Mortgage Documents), unless the amount of the loss net of the applicable deductible is less than the lesser of twenty-five percent (25%) of the
value of the Leasehold Improvements or five hundred thousand dollars ($500,000), in which event no consent shall be required by Landlord. Evidence of insurance shall be deposited with Landlord and, if requested, with any Landlord Mortgagee. The
insurance policies required to be carried by Tenant hereunder shall insure against at least the following risks with respect to each Property: 

(a) Insurance against fire, vandalism, malicious mischief and such other perils as are from time to time included in a standard extended
coverage insurance policy, insuring Tenant’s merchandise, inventory, trade fixtures, furnishings, equipment, plate and window glass and all other such items of personal property and Tenant’s Property (including all exterior and interior
improvements, including those existing in the Store as of the Commencement Date), and all modifications, replacements and substitutions thereof, in an amount not less than one hundred percent (100%) of the full amount of the actual replacement
cost thereof; 
 (b) Loss or damage by explosion of steam boilers, pressure vessels or similar apparatus, now or hereafter installed in each
Store, in such limits, with respect to any one accident, as may be reasonably requested by Landlord from time to time; 
 (c) Flood (when
any of the improvements comprising the Demised Premises is located in whole or in part within a FEMA designated high-hazard flood zone) in an amount not less than the full replacement cost of such improvements or such other hazards and in such
amounts as may be customary for comparable properties in the area; 

  
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 (d) Loss of rental value in an amount not less than twelve (12) months’ Rent payable
hereunder or business interruption in an amount not less than twelve (12) months of income and normal operating expenses including ninety (90) days’ ordinary payroll and Rent payable hereunder, with an extended period of indemnity
coverage of at least ninety (90) days necessitated by the occurrence of any of the hazards described in Section 11.1(a), 11.1(b) or 11.1(c); 

(e) Claims for personal injury or property damage under a policy of comprehensive general public liability insurance with amounts not less
than one hundred million dollars ($100,000,000) each occurrence and one hundred million dollars ($100,000,000) in the annual aggregate and with a retention or deductible not in excess of five million dollars ($5,000,000); provided, that such
requirements may be satisfied through the purchase of a primary general liability policy and excess liability policies. In addition, to the extent that Landlord maintains any policy(ies) of comprehensive general public liability insurance with
respect to any Common Areas, Landlord shall name Tenant as an additional insured on each such policy as to all matters arising with respect to such Common Areas from and after the Multi-Tenant Occupancy Date. The coverage under each such policy
shall be on a Primary and Non-Contributory Basis; 
 (f) Workers’ compensation insurance evidenced by Tenant on a per-state basis (with
respect to the state in which each Demised Premises are located) and by a certificate of insurance on a “statutory basis” with minimum limits of “employers liability” coverage of five hundred thousand dollars ($500,000) per
occurrence; 
 (g) Motor vehicle liability insurance with coverage for all owned, nonowned and hired vehicles with a combined single limit
of not less than Three Million and No/100 Dollars ($3,000,000) per occurrence for bodily injury and property damage. If no vehicles are owned or leased, the commercial general liability insurance shall be extended to provide insurance for nonowned
and hired vehicles; 
 (h) During such time as Tenant is constructing any improvements, Tenant, at its sole cost and expense, shall carry,
or cause to be carried (i) workers’ compensation insurance and employers’ liability insurance covering all persons employed in connection with the improvements in statutory limits, (ii) a completed operations endorsement to the
commercial general liability insurance policy referred to above, (iii) builder’s risk insurance, completed value form (or its equivalent), covering all physical loss, in an amount and subject to policy conditions reasonably satisfactory to
Landlord, and (iv) such other insurance, in such amounts, as Landlord deems reasonably necessary to protect Landlord’s interest in the Demised Premises from any act or omission of Tenant’s contractors or subcontractors; 

(i) Without duplicating any of the above insurance coverages, as and to the extent Tenant engages in (i) the sale or serving of alcoholic
beverages, liquor liability insurance, and (ii) the sale of gasoline or other petroleum products and/or the operation of SACs, Tenant shall procure pollution legal liability insurance covering each location with a retroactive date corresponding
to the first occupation by Tenant with a minimum limit of ten million dollars ($10,000,000) for each incident which coverage shall be primary and noncontributory and should also include coverage for any underground storage tanks located on the Land.

 (j) By this Section 11.1, Tenant intends that the risk of loss or damage to the Demised Premises and all property thereon,
including the Leased Improvements, Fixtures and Tenant’s Property described above, be borne by responsible property insurance carriers and Tenant hereby agrees to look solely to, and to seek recovery only from, its respective property

  
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insurance carriers, in the event of a loss of a type described above to the extent that such coverage is agreed to be provided hereunder. For this purpose, any applicable deductible or
self-insured amount shall be treated as though it were recoverable under such policies; and 
 (k) Tenant, may self-insure any or all of the
above-stated risks by maintaining (or causing Tenant’s Parent or a Subsidiary thereof to maintain) a program of insurance. In the event Tenant elects to self-insure (or cause an Affiliate to insure) for any such risk, it shall use reasonable
efforts to endeavor to notify Landlord of such election. Failure to so notify Landlord, however, shall not be considered a default under the terms of this Lease and shall not subject Tenant to any additional liability hereunder. Upon request by
Landlord, Tenant shall promptly disclose to Landlord whether or not Tenant self-insures (or cause an Affiliate to insure) any of its insurance risks under this Master Lease. 

11.2 Landlord’s “All-Risk” Insurance. (a) Landlord shall provide, with respect to the Demised Premises and
the entire building in which it is located, insurance against loss or damage by fire, vandalism and malicious mischief, extended coverage perils commonly known as “All Risk,” and all physical loss perils normally included in
such All Risk insurance, including, but not limited to, sprinkler leakage and windstorm damages in an amount not less than the insurable value on a Maximum Foreseeable Loss (as defined in this Section 11.2) basis and including a building
ordinance coverage endorsement. The term “Maximum Foreseeable Loss” shall mean the largest monetary loss within one area that may be expected to result from a single fire with protection impaired, the control of the fire
mainly dependent on physical barriers or separations and a delayed manual firefighting by public and/or private fire brigades. If Landlord reasonably believes that the Maximum Foreseeable Loss has increased at any time during the Term, it shall have
the right to do so on commercially reasonable terms. 
 (b) Tenant shall reimburse Landlord on demand upon submission of an invoice therefor
for the cost of Landlord’s “All-Risk” policy of insurance and all other insurance policies which Landlord may maintain from time to time, with respect to the Demised Premises and the Property (“Landlord’s Insurance
Costs”), in the amount of, (a) prior to the Multi-Tenant Occupancy Date, one hundred percent (100%) of the amount thereof, and (b) from and after the Multi-Tenant Occupancy Date, Tenant’s Proportionate Share thereof
(in each case payable as part of the Operating Expenses). 
 11.3 Additional Insurance. In addition to the insurance described
above, Tenant shall maintain such additional insurance upon notice from Landlord as may be reasonably required from time to time by Landlord (as and to the extent then customarily carried or required by prudent owners of properties similar to the
Properties) and any Landlord Mortgagee, so long as the same is available at commercially reasonable rates, and shall further at all times maintain adequate workers’ compensation coverage and any other coverage required by Legal Requirements for
all Persons employed by Tenant on the Demised Premises in accordance with Legal Requirements. If Tenant is not required to do so, Landlord may abstain and pay on the same and add the cost thereof to the Property Charges. 

11.4 Waiver of Subrogation. All insurance policies carried by either Party covering the Demised Premises or Tenant’s
Property, including, without limitation, contents, fire and liability insurance, shall expressly waive any right of subrogation on the part of the insurer against the other Party. Each Party, respectively, shall pay any additional costs or charges
for obtaining such waiver. 

  
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 11.5 Policy Requirements. All of the Tenant policies of insurance referred to in
this Article XI shall be written in form reasonably satisfactory to Landlord and any Landlord Mortgagee and issued by insurance companies with a minimum policyholder rating of not less than “A” and a financial rating of
“VIII” in the most recent version of Best’s Key Rating Guide, or a minimum rating of “BBB” from Standard & Poor’s or the equivalent. 

11.6 Increase in Limits. If, from time to time after the Commencement Date, Landlord determines in the exercise of its
reasonable business judgment in good faith that the limits of the personal injury or property damage-public liability insurance then carried pursuant to Section 11.1(e) are insufficient, Landlord may give Tenant Notice of acceptable
limits for the insurance to be carried; provided, that in no event will Tenant be required to carry insurance in an amount which exceeds the sum of (i) the amounts set forth in Section 11.1(e) hereof and (ii) two percent
(2%) thereof in any one (1) Lease Year; and subject to the foregoing limitation, within ninety (90) days after the receipt of such Notice, the liability insurance shall thereafter be carried with limits as prescribed by Landlord until
further increase pursuant to the provisions of this Section 11.6. 
 11.7 Blanket Policy. Notwithstanding anything
to the contrary contained in this Article XI, Tenant’s obligations to carry the liability insurance provided for herein may be brought within the coverage of a so-called blanket policy or policies of insurance carried and maintained by
Tenant; provided, that the requirements of this Article XI (including satisfaction of the Landlord Mortgagee’s requirements and the approval of the Landlord Mortgagee) are otherwise satisfied; and provided, further,
that Tenant maintains specific allocations reasonably acceptable to Landlord. 
 11.8 No Separate Insurance. Tenant shall not,
on Tenant’s own initiative or pursuant to the request or requirement of any third party, (i) take out separate insurance concurrent in form or contributing in the event of loss with that required in this Article XI to be furnished
by, or which may reasonably be required to be furnished by, Tenant or (ii) increase the amounts of any then-existing insurance by securing an additional insurance policy or policies, unless all parties having an insurable interest in the
subject matter of the insurance coverage, including in all cases Landlord and all Landlord Mortgagees, are included therein as additional insureds and the loss is payable under such insurance policy or policies in the same manner as losses are
payable under this Master Lease. Notwithstanding the foregoing, nothing herein shall prohibit Tenant from insuring against risks not required to be insured hereby, and as to such insurance, Landlord and any Landlord Mortgagee need not be included
therein as additional insureds, nor must the loss thereunder be payable in the same manner as losses are payable hereunder except to the extent required to avoid a default under the Landlord Mortgage. 

ARTICLE XII 
 CASUALTY
AND CONDEMNATION 
 12.1 Casualty; Property Insurance Proceeds. (a) All proceeds (except business interruption
insurance proceeds not allocated to rent expenses) payable by reason of any property 

  
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loss, damage, or destruction of or to the Demised Premises by fire or other casualty, or any portion thereof, under any property policy of insurance required to be carried by Landlord hereunder,
shall be paid to Landlord Mortgagee if required under any Landlord Mortgage, if any (or if none, to Landlord), to be held in trust for purpose of restoration and made available to Tenant upon request and in accordance with Landlord Mortgagee’s
customary procedures (unless Landlord Mortgage Documents permit or require use of such proceeds to pay indebtedness and such proceeds are so used), or if there is no Landlord Mortgagee, by Landlord, pursuant to the procedures set forth in this
Section 12.1(a), for the reasonable costs of preservation, stabilization, emergency restoration business interruption (other than any amount allocated to rent expenses), reconstruction and repair, as the case may be, of any damage to or
destruction of the Demised Premises, or any portion thereof. All proceeds paid to Tenant from Landlord’s insurance shall be used only for the repair of any damage to the Demised Premises. Any excess proceeds of insurance remaining after the
completion of the restoration or reconstruction of the Demised Premises to substantially the same condition as existed immediately before the damage or destruction and with materials and workmanship of like kind and quality and to Landlord’s
reasonable satisfaction, and in accordance with the general terms and conditions of Schedule 1.7(j)(ii) attached hereto, as applicable (collectively, “Restoration Standards”), shall be provided to Landlord,
unless otherwise required by any Landlord Mortgagee. All salvage resulting from any risk covered by insurance for damage or loss to the Demised Premises shall belong to Landlord. Landlord shall have the right to prosecute and settle insurance
claims, in good faith in a commercially reasonable manner intended to maximize the recovery, with respect to all Landlord’s insurance, provided, that Landlord shall fully consult with and involve Tenant in the entire process of adjusting
and settling any insurance claims under this Article XII, and any final settlement with the insurance company shall be subject to Tenant’s written consent if such adjustment or settlement would result in insurance proceeds which are
insufficient to completely cover all of Tenant’s restoration obligations hereunder, such consent not to be unreasonably withheld, conditioned or delayed, and any consent by Landlord Mortgagee (if required) under any Landlord Mortgage. Tenant
shall have the sole right to adjust and settle all insurance claims with respect to all Tenant’s insurance and to retain all proceeds thereof (including loss of rental value) for its own account. 

(b) Subject to the provisions of any Landlord Mortgage, and subject to the terms of this Article XII, Landlord Mortgagee or
Landlord shall make available to Tenant the insurance proceeds (net of all administrative and collection costs, including reasonable attorneys’ fees) paid to Landlord for such repair and rebuilding as it progresses. Payments shall be made
against certification of the architect approved by Landlord (which approval shall not be unreasonably withheld, delayed or conditioned) responsible for the supervision of the repairs and rebuilding that the work had been performed substantially in
conformance with the approved plans and specifications therefor and the value of the work in place is equal to not less than one hundred ten percent (110%) of the aggregate amount advanced by Landlord for the payment of such work. Prior to
commencing the repairing and rebuilding, Tenant shall deliver to Landlord for Landlord’s approval a schedule setting forth the estimated monthly draws for such work. Subject to the provisions of any applicable Landlord Mortgage, Landlord shall
contribute to such payments, out of the insurance proceeds being held in trust by Landlord, an amount equal to the proportion that the total net amount so held by Landlord bears to the total estimated cost of repairing and rebuilding, multiplied by
the payment by Tenant on account of such work. Landlord may, however, withhold ten percent (10%) from each payment until the work has been 

  
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completed and unconditional lien releases and/or other proof has been furnished to Landlord that no lien or liability has attached, or will attach, to the applicable Demised Premises or the
Property or to Landlord in connection with repairing and rebuilding. 
 12.2 Tenant’s Obligations Following Casualty.
(a) If any Demised Premises is damaged, whether or not from a risk covered by insurance, (i) Tenant shall promptly restore such Demised Premises to the Restoration Standards and (ii) such damage shall not terminate this Master Lease;
provided, however, that in the case of (A) a total destruction of the Leased Improvements and Fixtures with respect to a particular Property or a destruction of same such that such Property is rendered Unsuitable For Its Intended
Use (“Total Destruction”), or (B) a partial destruction which occurs during the last twelve (12) months of the Initial Term or any exercised Renewal Term (“12-Month Destruction”), then in
either such event Tenant shall have the right to elect not to restore the Demised Premises, upon Notice to Landlord, and subject to and on the terms and conditions, as hereinafter provided. 

(b) If Tenant restores the affected Demised Premises and the cost of the repair or restoration exceeds or appears is likely to exceed the
amount of proceeds received from the insurance required to be carried hereunder, or if there are no insurance proceeds promptly after becoming aware of such facts (or at any time) upon demand by Landlord, Tenant shall promptly provide Landlord with
evidence reasonably acceptable to Landlord that Tenant has available to it any excess amounts needed to restore such Demised Premises (without any adverse effect on Tenant’s ability to pay all Rent or to perform all of its other obligations
with this Master Lease). All such excess amounts necessary to restore such Demised Premises shall be paid by Tenant and the amount thereof promptly deposited with Landlord Mortgagee or Landlord, as the case may be, for disbursement as the work
progresses. Notwithstanding the foregoing, if the amount of insurance proceeds available for restoration is not sufficient solely because of an uninsurable casualty, Tenant shall not be required to restore the casualty damage (but its obligation to
pay Rent shall not be suspended or abated). 
 (c) If there is a 12-Month Destruction and Tenant elects not to restore by Notice to Landlord
within sixty (60) days of the 12-Month Destruction, Tenant shall not be required to restore but shall be obligated to make payment to Landlord of the 12-Month Destruction Fee as provided in Section 12.6. 

(d) If Tenant is not required to or permitted to, and elects not to repair and restore the Demised Premises, all insurance proceeds shall be
paid to and retained by Landlord free and clear of any claim by or through Tenant, subject to the provisions of any Landlord Mortgage. 

12.3 No Abatement of Rent. In the event of any casualty or destruction, including a Total Destruction, this Master Lease shall
remain in full force and effect, and Tenant’s obligation to pay the Rent and all other charges required by this Master Lease shall remain unabated during the period required for adjusting insurance, satisfying Legal Requirements, repair and
restoration, subject to Tenant’s foregoing right to elect not to restore and the termination of the Master Lease with respect to the affected Demised Premises in the event of Total Destruction, and Landlord’s right of termination if
Landlord Mortgagee applies proceeds of insurance as provided below; provided, that in either of which events of termination, as of the date Tenant vacates the affected 

  
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Demised Premises (and surrenders the same) in accordance with this Master Lease, there shall be a Base Rent adjustment with respect to the remainder of the Demised Premises in accordance with
Schedule 2 to the Side Letter (as if the remainder of the Demised Premises was akin to the Tenant Space referenced in item 2 of such Schedule 2 to the Side Letter; provided, further, that the foregoing is
subject to the provisions of Section 12.6. 
 12.4 Waiver. Tenant waives any statutory rights of termination which
may arise by reason of any damage or destruction of the Demised Premises but such waiver shall not affect any contractual rights granted to Tenant under this Article XII. 

12.5 Insurance Proceeds Paid to Landlord Mortgagee. 

(a) Notwithstanding anything herein to the contrary, if any Landlord Mortgagee is entitled to any insurance proceeds, or any portion thereof,
under the terms of any Landlord Mortgage, such proceeds shall be applied, held and/or disbursed in accordance with the terms of the Landlord Mortgage. 

(b) Prior to the Multi-Tenant Occupancy Date, if the Landlord Mortgagee elects, or is required under the related financing document, to apply
the insurance proceeds to the Indebtedness secured by the Landlord Mortgage, then Tenant shall not be obligated to repair or restore the Demised Premises and if Tenant does not elect to restore the Demised Premises with its own funds by Notice to
Landlord within sixty (60) days of such application of proceeds by Landlord Mortgagee, then except in the case of a Total Destruction, Landlord shall elect upon Notice to Tenant within ninety (90) days of application of such proceeds to
the Landlord Mortgagee Indebtedness either to (a) fund the amount of insurance proceeds applied by Landlord Mortgage within six (6) months of such application, in which case Tenant shall be obligated to restore the Demised Premises upon
receipt of such proceeds (regardless of the sufficiency thereof for the required restoration), which may be disbursed by Landlord in accordance with the same or similar procedures as applied by Landlord Mortgagee, or (b) terminate this Master
Lease as to the Demised Premises effective as of a date ninety (90) days after the date of such Notice. 
 (c) From and after the
Multi-Tenant Occupancy Date, if the Landlord Mortgagee elects, or is required under the related financing document, to apply the insurance proceeds to the Indebtedness secured by the Landlord Mortgage, then Landlord shall not be obligated to repair
or restore the Demised Premises and Landlord shall elect upon Notice to Tenant within ninety (90) days of application of such proceeds to the Landlord Mortgagee Indebtedness either to (a) repair or restore the Demised Premises using
Landlord’s own funds in accordance with the Restoration Standards, or (b) terminate this Master Lease as to the Demised Premises effective as of a date ninety (90) days after the date of such Notice (unless Tenant elects to provide
its own funds to Landlord sufficient to complete such repair and restoration by Notice to Landlord within sixty (60) days after Landlord’s Notice of termination). 

12.6 Tenant’s Right to Terminate Upon Damage Near End of Term. In the event of a 12-Month Destruction in which Tenant does
not elect to rebuild as provided herein, upon payment by Tenant to Landlord of the 12-Month Destruction Fee (as hereinafter defined), the Master Lease will terminate, and Tenant will vacate, the Demised Premises on the date that Tenant pays to
Landlord the 12-Month Destruction Fee (as hereinafter defined), which shall not 

  
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be later than ninety (90) days after receipt of Notice from Tenant of its election not to rebuild. The “12-Month Destruction
Fee” is an amount equal to the greater of (a) the insurance proceeds attributable to such damage or destruction and (b) the cost to repair such damage or destruction as reasonably estimated by Landlord. Except for such Base
Rent adjustment, such termination shall not otherwise affect any other terms or conditions of this Master Lease with respect to the remainder of the Demised Premises, all of which shall remain in full force and effect, subject to all obligations of
Tenant which survive termination of the Master Lease. 
 12.7 Tenant’s Right to Terminate Upon Total Destruction. In the
event of a Total Destruction in which Tenant does not elect to rebuild as provided herein, upon payment by Tenant to Landlord of the Destruction Termination Fee (as hereafter defined) and the earlier of receipt by Landlord of all applicable
insurance proceeds (and Landlord agrees to use all commercially reasonable efforts to adjust and obtain the same) or ninety (90) days after the date of the Total Destruction, the Master Lease will terminate as to, and Tenant will vacate, the
Demised Premises. The “Destruction Termination Fee” is an amount equal to Base Rent attributable to such Demised Premises (as calculated in accordance with the “SHC Base Rent Adjustment” and as otherwise provided in
Schedule 2 attached to the Side Letter) plus any payments under the Lands’ End Agreements or the Sears Hometown License Agreement relating to the Nonprofitable Property, in each case that would be payable for a period (the
Calculation Period) of the lesser of (x) one (1) calendar year or (y) the balance of the Term (excluding renewals) from the date of termination with respect to such Demised Premises, plus (ii) all Property Charges
attributable to such Demised Premises, including any Lands’ End Space and Sears Hometown Space, that would be payable during the Calculation Period, which shall be initially paid at the rate based on the amount payable during the one (1)-year
period immediately preceding the date of the Tenant Termination Election Notice, subject to final adjustment. When the actual amount of such Property Charges has been finally determined, Landlord and Tenant shall promptly adjust such amount and
refund or pay any 12-Month Destruction Fee or Destruction Termination Fee (as applicable). Except for such Base Rent adjustment, such termination shall not otherwise affect any other terms or conditions of this Master Lease with respect to the
remainder of the Demised Premises, all of which shall remain in full force and effect, subject to all obligations of Tenant which survive termination of the Master Lease. 

12.8 Condemnation. (a) Tenant and Landlord shall promptly give the other written notice upon knowledge of the actual or
threatened commencement of any condemnation or eminent domain proceeding or other governmental taking affecting any Demised Premises (a “Condemnation”), and, to the extent not otherwise received, shall deliver to the other
copies of any and all papers served in connection with such Condemnation. 
 (b) Subject to the further provisions hereof, following the
occurrence of a Condemnation, Tenant, regardless of whether sufficient Condemnation awards are available for restoration, shall, in a reasonably prompt manner, proceed to Restore the Demised Premises to the extent practicable to be of substantially
the same character and quality as prior to the Condemnation, in compliance with all applicable material Legal Requirements. Tenant shall not be obligated to restore or replace Tenant’s Property or any alterations or additions to the Demised
Premises made by Tenant unless, with respect to such alterations or additions, the same were Required Alterations. 

  
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 (c) This Master Lease shall terminate with respect to the affected Demised Premises upon the
Condemnation of all or substantially all of such Demised Premises, or which renders the unaffected portion of the Demised Premises Unsuitable for its Intended Use (“Total Condemnation”); provided, that in the event of
a temporary taking (which shall not exceed six (6) consecutive months), the Master Lease shall continue in full force and effect and Tenant shall receive the entire award therefor, subject to any Landlord Mortgage. A Condemnation of
substantially all of a Demised Premises shall be deemed to have occurred if (i) fifty percent (50%) or more of the square footage of such Demised Premises shall have been subject to a Condemnation, or (ii) there shall have been a loss
of access or egress, parking capacity or any other appurtenance necessary for the operation of such Demised Premises substantially in the manner in which it had previously been operated and there is no reasonably equivalent replacement therefor. In
the event of a termination of this Lease pursuant to this Section 12.8(c), as of the date Tenant vacates the affected Demised Premises (and surrenders the same) in accordance with this Master Lease, Tenant shall have no further
obligation to pay any Base Rent or Additional Charges in respect of the affected Demised Premises for the period after such termination and surrender, and there shall be a Base Rent adjustment with respect to the remainder of the Demised Premises in
accordance with the “SHC Base Rent Adjustment” and as otherwise provided in Schedule 2 to the Side Letter (as if the remainder of the Demised Premises was akin to the Tenant’s Space referred to in item 3 of
such Schedule 2 to the Side Letter). 
 12.9 Condemnation Proceeds Paid to Landlord Mortgagee.
Notwithstanding anything herein to the contrary, if any Landlord Mortgagee is entitled to any condemnation proceeds, or any portion thereof, under the terms of any Landlord Mortgage, such proceeds shall be applied, held and/or disbursed in
accordance with the terms of the Landlord Mortgage. If the Landlord Mortgagee elects, or is required under the related financing document to apply the condemnation proceeds to the Indebtedness secured by the Landlord Mortgagee, then Tenant shall not
be obligated to repair or restore the Demised Premises and if Tenant does not elect to restore the Demised Premises with its own funds by Notice to Landlord within sixty (60) days of such application of proceeds by Landlord Mortgagee, then,
except in the case of a Total Condemnation, Landlord shall elect upon Notice to Tenant within ninety (90) days of application of such proceeds by Landlord Mortgagee Indebtedness either to (a) fund the amount of Condemnation proceeds
applied by Landlord Mortgagee within six (6) months of such application, in which case Tenant shall be obligated to restore the Demised Premises upon receipt of such proceeds (regardless of the sufficiency thereof for the required restoration),
which may be disbursed by Landlord in accordance with the same or similar procedures as applied by Landlord Mortgagee, or (b) terminate this Master Lease as to the Demised Premises effective as of a date ninety (90) days after the date of
such Notice. 
 (a) If the Demised Premises is the subject of a Condemnation and this Master Lease does not terminate with respect thereto
pursuant to Section 12.9(c), then Tenant shall not be required to restore, repair, replace or rebuild such Demised Premises if: the Restoration cannot reasonably be completed prior to the beginning of the ninth (9th) year
immediately preceding the expiration of the Initial Term (or prior to the beginning of the fourth (4th) year of any Renewal Term) for any Property, and twenty percent (20%) or more (but less than fifty percent (50%) of the square
footage of such Demised Premises shall have been subject to a Condemnation. 

  
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 (b) With respect to a Condemnation of the Demised Premises that is described in
Section 12.9(a), Tenant shall notify Landlord of its election not to restore within the next one hundred eighty (180) days after it is notified of the Condemnation or, if later, after the net Condemnation Proceeds available for
restoration are determined, in which case, this Master Lease shall terminate with respect to the affected Demised Premises on a date specified in said Notice not later than the thirtieth (30th) day after such Notice, conditional on
Landlord’s receipt of payment and/or assignment of the proceeds in the next succeeding sentence. In the event of any termination of this Master Lease, Tenant shall pay over and/or assign to Landlord all proceeds payable to Tenant (if any) in
connection with such Condemnation, less any portion thereof previously used by Tenant to secure and make safe the affected Demised Premises and the Tenant’s Award (as hereinafter defined). 

(c) The Base Rent and Additional Charges in respect of any Demised Premises affected by a Condemnation shall not abate by reason thereof
(other than, in the case of any Additional Charges, if the same shall abate by the terms of any applicable law or otherwise as a result of such Condemnation), except as a result of and as of the date of a termination of this Master Lease with
respect to an affected Demised Premises; provided, however, that from and after the date of such termination the Rent with respect to the remainder of the Demised Premises shall be adjusted in accordance with the “SHC Base Rent
Adjustment” as specified in and as otherwise provided in Schedule 2 to the Side Letter. 
 (d) Unless Tenant is
required or elects to perform any restoration utilizing the Award, Landlord shall be entitled to the entire Award in any Condemnation, subject to Tenant’s Award, and Tenant shall not have any interest in or right to claim any, interest or award
for or measured by the value of this Master Lease or Tenant’s leasehold estate hereunder, including any unexpired Term (including any Renewal Terms) hereof. Landlord shall have the exclusive power to collect, receive and retain any Award
proceeds and to make any compromise or settlement in connection with such Condemnation, subject to Tenant’s Award, further subject to Landlord’s making available any Award for Tenant’s restoration obligations hereunder. Nothing herein
shall be deemed to assign to Landlord, or preclude Tenant from seeking and retaining its interest in, a separate award to Tenant for Tenant’s Property, severable Alterations (subject to the provisions of any Legal Requirements, Insurance
Requirements or Encumbrances), moving expenses, business dislocation damages or similar claims (provided, that where this Master Lease is to terminate as a result of such Condemnation, such claim does not reduce the award that would otherwise
be paid over or assigned to Landlord) (“Tenant’s Award”). 
 (e) Any surplus which may remain out of proceeds
or awards received pursuant to a Condemnation after payment of such costs of Restoration undertaken by Tenant, and any Tenant’s Award (if any) shall be paid over to and belong to Landlord. 

(f) Landlord shall accept or reject Tenant’s offer within sixty (60) days of Tenant’s election not to restore the Demised
Premises as provided in this Article XII. All Rent shall be prorated as of and shall be paid or credited as of the closing. 

12.10 Landlord’s Restoration Obligations. Notwithstanding the foregoing and subject to the terms of any Landlord Mortgage
Documents, provided Tenant has not elected to terminate the Master Lease with respect to an individual Demised Premises, as provided for in 

  
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this Article XII, from and after the Multi-Tenant Occupancy Date, upon reasonable notice to Tenant, Landlord shall perform all of Tenant’s restoration obligations (with the
exception of restoration of Tenant’s Alterations (other than Alterations made pursuant to Legal Requirements or Insurance Requirements) and Tenant’s Property) to the extent of the “All Risk” Insurance which Landlord is obligated
to carry hereunder, provided that Landlord receives such insurance proceeds in the case of a casualty, or to the extent of the Award actually received by Landlord upon condemnation with respect to damage or destruction which affects both the
Demised Premises and any Recapture Space or Additional Recapture Space. 
 12.11 Nonprofitable Properties. Notwithstanding any
provision contained in this Master Lease to the contrary, Tenant shall not have any obligation to restore any casualty damage or condemnation to any Nonprofitable Property, and shall be entitled to terminate this Master Lease with respect to such
Nonprofitable Property on the earlier of (a) any date otherwise provided in Section 12.6 or 12.7, as the case may be, and (b) any applicable Nonprofitable Property Termination Date, upon payment of the applicable
Nonprofitable Property Termination Fee. 
 ARTICLE XIII  

DEFAULT 
 13.1
Events of Default. Any one (1) or more of the following shall constitute an “Event of Default”: 

(a) (i) Tenant shall fail to pay any installment of Base Rent or any installment of the Installment Expenses when due and such failure is not
cured by Tenant within ten (10) days after Tenant’s failure to pay such installment of Base Rent or Installment Expenses when due; 

(ii) Tenant shall fail to pay any other amount payable hereunder when due and such failure is not cured by Tenant within
thirty (30) days after Notice from Landlord of Tenant’s failure to pay such amount when due. 
 (b) a default shall occur under
any Lease Guaranty where the default is not cured within any applicable cure period set forth therein or, if no cure periods are provided, within thirty (30) days after Notice from Landlord; 

(c) Tenant or Lease Guarantor shall: 

(i) admit in writing its inability to pay its debts generally as they become due; 

(ii) file a petition in bankruptcy or a petition to take advantage of any insolvency act; 

(iii) make an assignment for the benefit of its creditors; 

(iv) consent to the appointment of a receiver of itself or of the whole or any substantial part of its property; or 

(v) file a petition or answer seeking reorganization or arrangement under the United States bankruptcy laws or any other
applicable law or statute of the United States of America or any state thereof; 

  
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 (d) Tenant or Lease Guarantor shall be adjudicated as bankrupt or a court of competent
jurisdiction shall enter an order or decree appointing, without the consent of Tenant or any Lease Guarantor, a receiver of Tenant or any Lease Guarantor or of the whole or substantially all of the Tenant’s or Tenant’s Parent’s
property, or approving a petition filed against Tenant or any Lease Guarantor seeking reorganization or arrangement of Tenant or any Lease Guarantor under the United States bankruptcy laws or any other applicable law or statute of the United States
of America or any state thereof, and such judgment, order or decree shall not be vacated or set aside or stayed within ninety (90) days from the date of the entry thereof; 

(e) Tenant or Tenant’s Parent shall be liquidated or dissolved; 

(f) the estate or interest of Tenant in the Demised Premises or any part thereof shall be levied upon or attached in any proceeding relating
to more than (i) two hundred fifty thousand dollars ($250,000) with respect to any one Demised Premises or (ii) Two Million Dollars ($2,000,000) with respect to more than one Demised Premises, and the same shall not be vacated, discharged
or stayed pending appeal (or bonded or otherwise similarly secured payment) within the earlier of ninety (90) days after commencement thereof or thirty (30) days after receipt by Tenant of notice thereof from Landlord or any earlier period
provided by law for obtaining any stay pending appeal or to prevent foreclosure or sale (“Stay Period”); provided, however, that such notice shall be in lieu of and not in addition to any notice required under
applicable law; 
 (g) Tenant ceases the continuous operations of any Store in violation of the Operating Covenant, and Tenant fails to
resume operations within thirty-five (35) days after Notice from Landlord; provided, however, if Landlord believes that Tenant has violated the Operating Covenant, it shall offer to meet and confer with Tenant in good faith for a
period of fifteen (15) days prior to sending any Notice of such violation or any breach or default to Tenant; provided, further, however, Landlord shall not be required to meet and confer and Tenant shall not have any cure
right with respect to any failure to conduct any business operations in 100% of any Demised Premises in violation of the Operating Covenant. 

(h) any of the material representations or warranties made by Tenant hereunder or by Lease Guarantor in a Guaranty prove to be untrue when
made in any material respect, and (i) if such misrepresentation is capable of being cured, it shall not have been cured within thirty (30) days after Notice from Landlord, unless Tenant shall be diligently pursuing such cure and such cure
is completed within an additional sixty (60) days thereafter, or (ii) if such misrepresentation is not capable of being cured but the damages or detriment to Landlord (including all reasonable attorneys’ fees) can reasonably be
ascertained and ascribed a monetary value, Tenant fails to pay the amount thereof (as reasonably estimated by Landlord) to Landlord prior to the expiration of such additional sixty (60)-day period; 

(i) except as expressly permitted hereunder, there shall occur any Transfer of the Master Lease or any interest therein or any Demised
Premises which is not entirely revoked 

  
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and rescinded within the earlier of (a) fifteen (15) days after such Transfer or (b) Tenant’s becoming aware thereof; provided, however, that if such Transfer
involves an impermissible Sublease of space due solely to Tenant’s good faith error in computing the rental value thereof which results in such Sublease exceeding the ten percent (10%) rental value limitation as provided in
Section 9.2, which exceeds the aggregate limitation of ten percent (10%) of rental value, Tenant shall have an additional period not to exceed ninety (90) days in which to reduce the amount of space in such Sublease to a
permissible level or to terminate such Sublease; 
 (j) Tenant or Lease Guarantor, by its acts or omissions, causes or suffers the
occurrence of a default under any provision (to the extent Tenant has knowledge of such provision and Tenant’s or Lease Guarantor’s obligations with respect thereto), of any Landlord Mortgage or Landlord Mortgage Documents by which Tenant
is bound in accordance with Article XIV or Tenant has agreed under the terms of this Master Lease to be bound, which default is not cured within the applicable time period, if the effect of such default is to cause, or to permit the
holder or holders of that Landlord Mortgage or Indebtedness secured by that Landlord Mortgage (or a trustee or agent on behalf of such holder or holders) to cause, that Landlord Mortgage (or the Indebtedness secured thereby) to become or be declared
due and payable (or redeemable) prior to its stated maturity; 
 (k) if Tenant shall fail to observe or perform any other nonmonetary term,
covenant or condition of this Master Lease (so long as such failure is not caused directly by the gross negligence or willful misconduct of Landlord, or the acts or omissions of Landlord’s tenants in the Recapture Space or any Additional
Recapture Space or under any Leases first arising from and after the date of this Master Lease) and such failure is not cured by Tenant within thirty (30) days after notice thereof from Landlord, unless such failure cannot with diligence be
cured within a period of thirty (30) days, in which case such failure shall not be deemed to be an Event of Default if Tenant proceeds promptly and diligently to cure the failure and continues to act with diligence to complete the curing
thereof within a commercially reasonable period of time not to exceed an aggregate of one hundred twenty (120) days (which shall be further extended for up to an additional sixty (60) days for good cause shown) after such notice from
Landlord, subject to further extension by reason of Unavoidable Delays, so long as Tenant continues to act with diligence and dispatch; provided, however, that such notice shall be in lieu of and not in addition to any notice
required under applicable law; provided, further, however, that in no event shall the original thirty (30)-day period be further extended beyond any period (i) as shall be necessary to prevent imminent loss or damage
(including the foreclosure of any lien) to any affected Demised Premises or (ii) which would constitute an event of default under any Landlord Mortgage which would entitle the holder to exercise any remedies thereunder; 

(l) if Tenant or Lease Guarantor shall fail to pay, bond, escrow or otherwise similarly secure payment of one or more final judgments
aggregating in excess of five million dollars ($5,000,000) with respect to Tenant or Lease Guarantor within the applicable Stay Period, unless the same does not attach to or otherwise adversely affect the Demised Premises or this Master Lease; and

 (m) if Tenant shall fail to maintain any insurance required by the Lease and the same is not cured within the earlier of (a) ten
(10) days after Notice from Landlord or (b) the date 

  
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which is fifteen (15) days prior to the earliest date for cancellation of any insurance for nonpayment or nonrenewal; provided, however, that if such failure is the result of
Tenant not obtaining the required insurance immediately following the downgrading of such insurance below the levels required herein, such failure shall not constitute an Event of Default unless such failure shall continue for the earlier of ten
(10) days after (a) Tenant’s learning thereof or (b) Notice from Landlord. 
 13.2 Certain Remedies.
(a) If an Event of Default shall have occurred and be continuing, Landlord may (i) after the expiration ten (10) days after any Event of Default Notice (as hereinafter defined), terminate this Master Lease by giving Tenant no less
than ten (10) days’ Notice of such termination and the Term shall terminate and all rights of Tenant under this Master Lease shall cease, (ii) seek damages as provided in Section 13.3 and/or (iii) exercise any other
right or remedy at law or in equity available to Landlord as a result of any Event of Default. Tenant shall pay as Additional Charges all costs and expenses incurred by or on behalf of Landlord, including reasonable attorneys’ fees and
expenses, and court costs, as a result of any Event of Default hereunder. If an Event of Default shall have occurred and be continuing, whether or not this Master Lease has been terminated pursuant to the first sentence of this
Section 13.2, Tenant shall, to the extent permitted by law, if required by Landlord to do so, immediately surrender to Landlord possession of all or any portion of the Demised Premises as to which Landlord has so demanded and quit the
same and Landlord may, to the extent permitted by law, enter upon and repossess such Demised Premises by reasonable force, summary proceedings, ejectment or otherwise, and, to the extent permitted by law, may remove Tenant and all other Persons and
any of Tenant’s Property from such Demised Premises (including all Alterations), but in no event shall Tenant be obligated to remove any Alterations that are owned or are deemed to be owned by Landlord under this Master Lease. 

(b) Landlord shall not be entitled to terminate this Master Lease by reason of an Event of Default (but Landlord may exercise all other rights
and remedies), unless and until Landlord has, following the occurrence of such Event of Default, delivered a Notice (“Event of Default Notice”) to Tenant stating the Event of Default, and containing the following caption (in
bold 16 point type): 
 “THIS IS AN EVENT OF DEFAULT NOTICE. FAILURE TO TAKE IMMEDIATE ACTION AND TO CURE THE EVENT(S) OF DEFAULT AS SPECIFIED BELOW
WITHIN TEN (10) DAYS OF RECEIPT OF THIS NOTICE MAY LEAD TO LANDLORD’S TERMINATION OF THE MASTER LEASE AND/OR THE EXERCISE OF OTHER REMEDIES THEREUNDER.” 

13.3 Damages. None of (i) the termination of this Master Lease, (ii) the repossession of the Demised Premises,
(iii) the failure of Landlord to relet the Demised Premises or any portion thereof, (iv) the reletting of all or any portion of the Demised Premises, or (v) the inability of Landlord to collect or receive any rentals due upon any such
reletting, shall relieve Tenant of its liabilities and obligations hereunder, all of which shall survive any such termination, repossession or reletting. Landlord and Tenant agree that Landlord shall have no obligation to mitigate

  
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Landlord’s damages under this Master Lease except if, and to the extent, required under applicable law. If any such termination of this Master Lease occurs (whether or not Landlord
terminates Tenant’s right to possession of the Demised Premises), Tenant shall forthwith pay to Landlord all Rent due and payable under this Master Lease, to and including the date of such termination. Thereafter Tenant shall forthwith pay to
Landlord, at Landlord’s option, as and for liquidated and agreed upon current damages for the occurrence of an Event of Default, either: 

(a) the sum of: 

(i) the worth at the time of award of the unpaid Base Rent which had been earned at the time of termination to the extent not
previously paid by Tenant under this Section 13.3; plus 
 (ii) the worth at the time of award of the
amount of unpaid Base Rent which would have been earned after termination until the time of award; plus 
 (iii) the
worth at the time of award of the amount of the unpaid Base Rent for the balance of the Term after the time of award; plus 

(iv) any other amount necessary to compensate Landlord for the detriment proximately caused by Tenant’s failure to
perform its obligations under this Master Lease or which in the ordinary course of business might result therefrom, including all unpaid Additional Charges at the time of Termination and all Additional Charges which might have accrued for the
balance of the Term, and all reasonable costs and expenses of reletting the Demised Premises, including, but not limited to, all brokerage, advertising, repairs and other similar expenses reasonably necessary to secure new tenants for the Demised
Premises. 
 As used in the foregoing clauses (i), (ii) and (iii), the “worth at the time of award” shall be computed by
allowing interest at the Overdue Rate from the date when due to the date paid. As used in Section 13.3(a)(iii), the “worth at the time of award” shall be computed by discounting such amount at the discount rate of the Federal
Reserve Bank of New York at the time of award plus one percent (1%); or
 (b) regardless of whether Landlord chooses to terminate
Tenant’s right to possession of the Demised Premises (whether or not Landlord terminates the Master Lease), each installment of said Rent and other sums payable by Tenant to Landlord under this Master Lease as the same becomes due and payable,
together with interest at the Overdue Rate from the date when due until paid, and Landlord may enforce, by action or otherwise, any other term or covenant of this Master Lease (and Landlord may at any time thereafter terminate Tenant’s right to
possession of the Demised Premises and seek damages under subparagraph (a) hereof, to the extent not already paid for by Tenant under this subparagraph (b). 

13.4 Receiver. Upon the occurrence and continuance of an Event of Default, and upon commencement of proceedings to
enforce the rights of Landlord hereunder, but subject to any limitations of applicable law, Landlord shall be entitled, as a matter of right, to the appointment of 

  
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a receiver or receivers acceptable to Landlord of the Demised Premises and of the revenues, earnings, income, products and profits thereof, pending the outcome of such proceedings, with such
powers as the court making such appointment shall confer. 
 13.5 Waiver. If Landlord initiates judicial proceedings or if
this Master Lease is terminated by Landlord pursuant to this Article XIII, Tenant waives, to the extent permitted by applicable law, (i) any right of redemption, re-entry or repossession; and (ii) the benefit of any laws now or
hereafter in force exempting property from liability for rent or for debt. 
 13.6 Application of Funds. Any payments
received by Landlord under any of the provisions of this Master Lease during the existence or continuance of any Event of Default which are made to Landlord rather than Tenant due to the existence of an Event of Default shall be applied to
Tenant’s obligations in the order which Landlord may reasonably determine or as may be prescribed by the laws of the State in which the Property is located. 

13.7 Landlord’s Right to Cure Tenant’s Default. If an Event of Default shall have occurred and be continuing, in
addition to and not in limitation of any and all other rights and remedies, Landlord, without waiving or releasing any obligation or Event of Default, may (but shall be under no obligation to) at any time thereafter make such payment or perform such
act for the account and at the expense of Tenant, and may, to the extent permitted by law, enter upon the applicable Demised Premises or any portion thereof for such purpose and take all such action thereon as, in Landlord’s opinion, may be
necessary or appropriate therefor including, without limitation, to the fullest extent permitted by law, repossessing the Demised Premises and ejecting any Person or property thereon; provided, however, that no such entry or action by
Landlord shall constitute an actual or constructive eviction or repossession, without Landlord’s express intention to do so as expressed in writing. No such entry shall be deemed an eviction of Tenant. All reasonable sums so paid by Landlord
and all costs and expenses (including attorneys’ fees and expenses, in each a case, to the extent permitted by law) so incurred, together with interest thereon (to the maximum extent permitted by law) at the Overdue Rate from the date on which
such sums or expenses are paid or incurred by Landlord, shall be paid by Tenant to Landlord on demand. The obligations of Tenant and rights of Landlord contained in this Article XIII shall survive the expiration or earlier termination of
this Master Lease. 
 13.8 Default by Entities Comprising Tenant. For the avoidance of doubt, each and every Event of
Default of “Tenant” under this Article XIII shall mean and include the same act, omission, failure, refusal, breach or default by either or both of Kmart Tenant or Sears Tenant. 

ARTICLE XIV 

LANDLORD’S FINANCING 

14.1 Landlord’s Financing. Without the consent of Tenant, Landlord may from time to time, directly or indirectly, create or
otherwise cause to exist any Landlord Mortgage upon the Demised Premises or any portion thereof or interest therein. This Master Lease is and at all times shall automatically and without further action be subject and subordinate to the lien of any
Landlord Mortgage which may now or hereafter affect the Demised Premises or any portion thereof or interest therein and to all renewals, modifications, consolidations, replacements, restatements and extensions thereof or any parts or portions
thereof, subject to receipt of the 

  
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SNDA (hereinafter defined). The holder of each Landlord Mortgage shall execute and deliver to Tenant a nondisturbance and attornment agreement substantially in the form attached hereto as
Exhibit C (“SNDA”) or in the customary form then used by Landlord Mortgagee which is substantially similar thereto in all material respects, which shall also be executed by Tenant as well as Landlord, which will
bind Landlord and Tenant, and such holder of such Landlord Mortgage and its successors and assigns as well as any person who acquires any portion of the Demised Premises in a foreclosure or similar proceeding or in a transfer in lieu of any such
foreclosure or a successor owner of the Demised Premises (each, a “Foreclosure Purchaser”). The SNDA shall provide that in the event of any foreclosure under the Landlord Mortgage, the holder of such Landlord Mortgage, and
any Foreclosure Purchaser, shall not disturb either Tenant’s leasehold interest or possession of the Demised Premises in accordance with the terms hereof, nor any of Tenant’s rights, privileges and options, and shall give effect to this
Master Lease as if such Landlord Mortgagee or Foreclosure Purchaser were the landlord under this Master Lease (so long as there is not then outstanding and continuing an Event of Default under this Master Lease, it being understood that if an Event
of Default has occurred and is continuing at such time such parties shall be subject to the terms and provisions of this Master Lease concerning the exercise of rights and remedies upon such Event of Default). If, in connection with obtaining any
Landlord Mortgage for the Demised Premises or any portion thereof or interest therein, a Landlord Mortgagee or prospective Landlord Mortgagee shall request (A) reasonable cooperation from Tenant, and/or (B) reasonable amendments or
modifications to this Master Lease as a condition thereto, Tenant hereby agrees to reasonably cooperate in connection therewith, and to execute and deliver such amendments or modifications so long as any such amendments or modifications do not in
any material respect (i) increase Tenant’s monetary obligations under this Master Lease; (ii) increase Tenant’s nonmonetary obligations under this Master Lease; or (iii) diminish Tenant’s rights or remedies under this
Master Lease, including without limitation limiting or shortening any time periods for the payment or performance of any Tenant obligations or any notice and cure periods for any default of Tenant or limiting in any manner the right of Tenant to
operate the Stores in the ordinary course of its business (collectively, “Tenant Detriments”). 
 14.2
Attornment. As provided in the SNDA attached hereto (and any other SNDA shall so provide), if Landlord’s interest in the Demised Premises or any portion thereof or interest therein is sold, conveyed or terminated upon the exercise of
any remedy provided for in any Landlord Mortgage Documents (or in lieu of such exercise), or otherwise by operation of law: (a) at the request and option of the new owner or superior lessor, or other Foreclosure Purchaser, as the case may be
(“Successor Landlord”), which request and option shall be exercised within thirty (30) days following such transfer of Landlord’s interest, Tenant shall attorn to and recognize the Successor Landlord as
Tenant’s “landlord” under this Master Lease or enter into a new lease substantially in the form of this Master Lease with the Successor Landlord, and Successor Landlord and Tenant shall take such actions to confirm the foregoing
within ten (10) days after request of the Successor Landlord, all on the terms and conditions set forth in the SNDA; and (b) the Successor Landlord shall not be liable for the acts of the prior Landlord, except as set forth in the SNDA;
provided, however, until and unless Successor Landlord has made such request, Tenant shall continue to have all rights of possession of the Demised Premises as provided under this Master Lease. 

  
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 14.3 Compliance with Landlord Mortgage Documents. (a) Tenant acknowledges that
any Landlord Mortgage Documents executed by Landlord or any Affiliate of Landlord may impose certain obligations on the Landlord and its Affiliates to comply with or cause the operator and/or lessee of the Demised Premises to comply with all
representations, covenants and warranties contained therein relating to such Demised Premises and the operator and/or lessee of such Demised Premises, including, covenants relating to (i) the maintenance and repair of such Demised Premises;
(ii) maintenance and submission of financial records and accounts of the operation of such Demised Premises and related financial and other information regarding the operator and/or lessee of such Demised Premises and such Demised Premises
itself; (iii) the procurement of insurance policies with respect to such Demised Premises; and (iv) without limiting the foregoing, compliance with all applicable Legal Requirements relating to such Demised Premises and the operation of
the business thereof. For so long as any Landlord Mortgages encumber the Demised Premises or any portion thereof or interest therein, Tenant covenants and agrees, at its sole cost and expense and for the express benefit of Landlord, to operate the
applicable Store(s) and Demised Premises in strict compliance with the terms and conditions of the Landlord Mortgage Documents and to timely perform all of the obligations of Landlord relating to the operation of the Stores and the Demised Premises,
or to the extent that any of such duties and obligations may not properly be performed by Tenant, Tenant shall cooperate with and assist Landlord in the performance thereof; provided, however, that notwithstanding the foregoing, this
Section 14.3(a) shall not be deemed to, and shall not, impose on Tenant, any Tenant Detriments. If any new Landlord Mortgage Documents to be executed by Landlord or any Affiliate of Landlord would impose on Tenant any obligations
permissible under this Section 14.3(a), Landlord shall provide copies of the same to Tenant for informational purposes (but not for Tenant’s approval) prior to the execution and delivery thereof by Landlord or any Affiliate of
Landlord, as identified in Schedule 14.4. For the avoidance of doubt nothing in this Section 14.3(a) shall require Tenant, Tenant’s Parent or any of their Affiliates to satisfy any financial performance, operating
performance or similar test that may be contemplated by any Landlord Mortgage Documents as a condition or covenant relative to the Landlord and its Affiliates. 

(b) Without limiting or expanding Tenant’s obligations pursuant to any other provisions of this Master Lease, during the Term of this
Master Lease, Tenant acknowledges and agrees that, except as expressly provided elsewhere in this Master Lease, or as Landlord may otherwise elect in writing, it shall undertake at its own cost and expense the performance of any and all repairs,
replacements, improvements, maintenance items and all other requirements relating to the condition of the Demised Premises and Common Areas (to the extent that Tenant is then obligated by or for use or occupancy under the terms of this Master Lease)
that are required by any Landlord Mortgage Documents or by any Landlord Mortgagee; provided, however, that this Section 14.3(b) shall not in any material respect (i) increase Tenant’s monetary obligations under
this Master Lease; (ii) increase Tenant’s nonmonetary obligations under this Master Lease; or (iii) diminish Tenant’s rights or remedies under this Master Lease, including without limitation, limiting or shortening any time
periods for the payment or performance of any Tenant obligations or shortening any notice and cure periods for any default of Tenant 

14.4 Landlord Mortgagee Generally. Landlord Mortgagee shall be an express and intended third party beneficiary of the provisions
contained in this Article XIV and of any other 

  
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provision in this Lease expressly requiring the approval or consent of Landlord Mortgagee and shall have the right to enforce such provisions against Tenant. Tenant shall have the right to rely
conclusively upon any written communication from any Landlord Mortgagee’s “Trustee”, “Servicer” or “Special Servicer” as the duly authorized statement or communication by
Landlord Mortgagee. Tenant acknowledges that it has received on or prior to the date hereof all of the Landlord Mortgage Documents listed on Schedule 14.4 attached hereto. Unless otherwise expressly provided in the Landlord
Mortgage Documents, any consent or approval of Landlord Mortgagee required under this Lease may be granted or withheld in Landlord Mortgagee’s sole discretion. 

14.5 Limitation of Successor Landlord Liability. Notwithstanding anything herein to the contrary, in the event a Successor
Landlord shall acquire title to the Demised Premises (which, for purposes of this Section 14.5, shall include Landlord at any time after Landlord Mortgagee (or its nominee or designee) shall have acquired direct or indirect control of
the voting interests in any Landlord), Successor Landlord shall have no obligation, nor incur any liability, beyond Successor Landlord’s then-interest, if any, in the Demised Premises, and Tenant shall look exclusively to such interest, if any,
of Successor Landlord in the Demised Premises for the payment and discharge of any obligations imposed upon Successor Landlord under this Lease. Tenant agrees that, with respect to any monetary judgment which may be obtained or secured by Tenant
against Successor Landlord, Tenant shall look solely to the estate or interest owned by Successor Landlord in the Demised Premises (including, without limitation, the rent, issues and profits therefrom), and Tenant will not collect or attempt to
collect any such judgment against any Successor Landlord personally or any shareholder, member, partner, director or officer thereof, out of any other assets of Successor Landlord or any shareholder, member, partner, director or officer thereof.

 14.6 Lease Modifications. Tenant agrees that no amendment, modification, waiver, termination, tender, surrender or
cancellation of this Lease shall be effective as against any Landlord Mortgagee or Successor Landlord unless the same shall have been consented to by Landlord Mortgagee or Successor Landlord in writing, unless otherwise provided in the Landlord
Mortgage Documents. 
 14.7 Notice of Default to Landlord Mortgagee. In the event of any act or omission by Landlord which
would give Tenant the right (if any), either immediately or after notice or the lapse of a period of time, or both, to terminate this Lease, or to claim a partial or total eviction, Tenant will not exercise any such right (A) until it has given
written notice of such act or omission to Landlord Mortgagee, and (B) until a reasonable period of time (in any event not less than ninety (90) days) for remedying such act or omission shall have elapsed following both the giving of such
notice and following the time when Landlord Mortgagee shall have become entitled under the Landlord Mortgage Documents to remedy the same; provided that Landlord Mortgagee, with reasonable diligence (i) shall have pursued such remedies
as are available to it under Landlord Mortgage Documents so as to be able to remedy the act or omission, and (ii) thereafter shall have commenced and continued to remedy such act or omission or cause the same to be remedied. 

14.8 Delivery of Notices to Landlord Mortgagee. Subsequent to the receipt by Tenant of Notice from Landlord as to the identity
and address of Landlord Mortgagee, no Notice 

  
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from Tenant to Landlord or Notice from Landlord to Tenant shall be effective unless and until a duplicate original of such Notice is given to Landlord Mortgagee in accordance with
Article XIX. The curing of any of Landlord’s defaults by Landlord Mortgagee shall be treated as performance by Landlord. 

14.9 Right of Landlord Mortgagee to Enforce Lease. Tenant agrees that, to the extent permitted by Landlord under the Landlord
Mortgage Documents, Landlord Mortgagee may exercise the self-help remedies of Landlord hereunder. 
 14.10 Exercise of Landlord’s
Discretion. In any instance hereunder in which Landlord must be reasonable in making a request or granting or withholding an approval or consent, Tenant acknowledges and agrees that Landlord may take into account the reasonable objections of
Landlord Mortgagee, to the extent Landlord is required to do so under the Landlord Mortgage Documents. 
 14.11 Cure of Landlord
Defaults. Subject to the provisions of the SNDA, no Landlord default under this Lease shall be deemed to exist so long as any Landlord Mortgagee in good faith, (i) shall have commenced promptly to cure the default in question and
prosecutes the same to completion with reasonable diligence and continuity, or (ii) if possession of the Demised Premises is required to cure the default in question, such Landlord Mortgagee (x) shall have entered into possession of the
Demised Premises with the permission of Tenant for such purpose or (y) shall have notified Tenant of its intention to institute enforcement proceedings in respect of Landlord Mortgage Documents to obtain possession of Landlord’s interest
directly or through a receiver and thereafter prosecutes such proceedings with reasonable diligence and continuity. In any event all rights or obligations of Tenant or Landlord with respect to any actual or potential Terminated Space shall remain in
full force and effect. 
 14.12 Indemnification. (a) Notwithstanding the existence of any insurance required to be
provided hereunder (but not in duplication thereof), and without regard to the policy limits of any such insurance, and in addition to and not in limitation of any other indemnity provided in this Master Lease, and further notwithstanding any
provision of the Purchase Agreement to the contrary, subject to the provisions of Section 14.12(b), Tenant will protect, indemnify, save harmless and defend Landlord and Landlord Mortgagee and all Indemnified Parties from and against all
liabilities, obligations, claims, damages, penalties, causes of action, costs, fees and expenses (including reasonable attorneys’ fees and court costs, including the same incurred in the enforcement of such indemnity), to the maximum extent
permitted by law, imposed upon or incurred by or asserted against such Indemnified Party by reason of: (i) any accident, injury to or death of persons or loss of or damage to property occurring on or about the Demised Premises, or any adjoining
property under the exclusive control of Tenant, including any claims made by any Tenant Related User, expressly excluding any accident, injury, death or damage (as the case may be) occurring after the Actual Recapture Date with respect
to any Recapture Space, or during or after Landlord’s completion of the Recapture Separation Work, or after the Additional Recapture Space Termination Date or after the recapture work with respect thereto except to the extent caused by
negligence of Tenant or any Tenant Related User after the completion of Landlord’s Recapture Separation Work or other recapture and separation work, (ii) any use, misuse, nonuse, condition, maintenance, repair or Alteration by Tenant or
anyone claiming by, through or under Tenant, including agents, contractors, invitees or visitors of the applicable Demised Premises or in 

  
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connection with any Tenant’s Property, (iii) any failure on the part of Tenant or anyone claiming by, through or under Tenant to perform or comply with any of the terms of this Master
Lease, (iv) any failure by Tenant to perform its obligations under the Lands’ End Agreements, the Sears Hometown License Agreement or any Sublease and any claims made thereunder, with respect to Tenant’s such failure to perform,
(v) any contest by Tenant of any Legal Requirement or Insurance Requirement, regardless of whether the same is conducted in accordance with the terms hereof, (vi) any Retail Operations Claims, (vii) any Known Environmental Problems,
(viii) without limitation of clause (i) above, any accident, injury, death or damage (as the case may be) occurring prior to the Commencement Date on or about any portion of the Property or (ix) without limitation of clause
(i) above, any accident, injury, death or damage to any person occurring on or subsequent to the Commencement Date arising from any acts or omissions of Tenant or any Tenant’s Related Users. Any amounts which become payable by Tenant under
this Section 14.12 shall bear interest (to the extent permitted by law) at the Overdue Rate from ten (10) business days following the date of demand to the date of payment. Tenant, at its expense, shall contest, resist and defend
any such claim, action or proceeding asserted or instituted against any Indemnified Party (“Claim”). Nothing herein shall be construed as indemnifying an Indemnified Party against its own grossly negligent acts, or willful
misconduct. If at any time an Indemnified Party shall have received written notice of or shall otherwise be aware of any Claim which is subject to indemnity under this Section 14.12, such Indemnified Party shall give reasonably prompt
written notice of such Claim to Tenant; provided, that (i) such Indemnified Party shall have no liability for an inadvertent failure to give notice to Tenant of any Claim and (ii) the inadvertent failure of such Indemnified Party to
give such a notice to Tenant shall not limit the rights of such Indemnified Party or the obligations of Tenant with respect to such Claim, provided that Tenant shall have no obligation to indemnify or defend any Claim until it receives actual notice
thereof (from any source). Tenant shall have the right to control the defense or settlement of any Claim, provided, that (A) if the compromise or settlement of any such Claim shall not result in the complete release of such Indemnified
Party from the claim so compromised or settled, the compromise or settlement shall require the prior written approval of such Indemnified Party and (B) no such compromise or settlement shall include any admission of wrongdoing on the part of
such Indemnified Party, provided, further, that an Indemnified Party shall have the right to approve counsel engaged to defend such Claim by Tenant and, at its election and sole cost and expense, shall have the right, but not the
obligation, to participate fully in the defense of any Claim with counsel of its choice. Without limiting the foregoing and notwithstanding any provision to the contrary in this Master Lease, no Indemnified Party shall voluntarily agree to accept or
incur liability for any Claim, or waive, toll or extend any applicable limitations period with respect to any Claim. Tenant’s liability under this Section 14.12 shall survive the expiration or earlier termination of this Lease. 

(b) The following shall be expressly included in the foregoing indemnity by Tenant: 

(i) “Retail Operations Claims,” which means any and all claims from or by all customers, licensees,
invitees, employees and others for personal injury, property damage, product or service warranty, service, merchandise, products liability, and employment, consumer credit and vendor claims, and all claims and liabilities under applicable Legal
Requirements, arising out of or relating to the retail business operations or other activities conducted on or 

  
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about the Demised Premises by Tenant, Tenant’s Parent or any Affiliate of their Affiliates prior to the Commencement Date or at any time during the term of this Master Lease with respect to
the Demised Premises, including without limitation claims from or by all customers, licensees, invitees, employees, Governmental Authorities or any other Person for, among other things, non-compliance with applicable law, personal injury, property
damage, product or service warranty, service, merchandise, products liability, tax, employment (including any pension-related claims), consumer credit and vendor claims. For the avoidance of doubt, Retail Operations Claims shall include liabilities
arising under tort claims by third parties as a result of violations of applicable Law, in each case, arising from the physical condition or use of the Demised Premises, but shall not include other (a) claims by Landlord, its Affiliates and
their successors and assigns, relating directly and solely to the physical condition of the Demised Premises, other than Known Environmental Problems as provided in the Purchase Agreement and in this Master Lease and such other matters as provided
hereunder, and (b) claims arising after the recapture by Landlord or its Affiliates of all or any portion of the Demised Premises or termination of this Master Lease with respect to all or any of the Demised Premises, except to the extent
provided in this Master Lease. 
 (ii) “Known Environmental Problems,” which means (i) any
violation of Environmental Laws or (ii) the use, spilling, leaking, emitting, injecting, escaping, abandoning, dumping, presence, storage, release, threatened release, discharge, migration of or exposure to Hazardous Substances on, in, under,
from or around any Land or Improvements in violation of Environmental Laws or in excess of an applicable standard that would require investigation, remediation or other corrective action pursuant to Environmental Law, in each case regardless of when
such Hazardous Substances were first introduced in, on or about such Land, Improvements or Intangibles (each as defined in the Purchase Agreement) which (x) exists as of the Commencement Date, and/or (y) is caused by Tenant or any of
Tenant’s Related Users, and in any case of (x) or (y) becomes known or disclosed (or is of public record) at any time during the Term or after the expiration or termination of this Master Lease. Notwithstanding any provision to the
contrary in this Master Lease, Tenant’s liability for any violation of Environmental Laws shall be limited to Known Environmental Problems (including as set forth on Schedule 20.3 to the Side Letter). 

(c) To the extent not prohibited by Law, Tenant hereby expressly releases Landlord, and Landlord Mortgagee and all Indemnified Parties from,
and waives all claims for, damage or injury to person, theft, loss of use of or damage to property and loss of business sustained by Tenant and resulting from the Demised Premises, including any Leased Improvements, Fixtures and Tenant’s
Property or any part thereof or any equipment therein or appurtenances thereto becoming in disrepair, or resulting from any damage, accident or event in or about the Demised Premises, from the foregoing release all acts or omissions of gross
negligence or willful misconduct on the part of Landlord, Landlord Mortgagee or any Indemnified Parties. Without limiting the generality of the foregoing, this Section 14.12(c) shall apply particularly, but not exclusively, to: flooding,
damage caused by Building equipment and apparatuses, water, snow, frost, steam, excessive heat or cold, broken glass, sewage, gas, odors, excessive noise or vibration, death, loss, conversion, theft, robbery, or the bursting or leaking of pipes,
plumbing fixtures or sprinkler devices. 

  
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 ARTICLE XV 

TENANT FINANCING 

15.1 No Leasehold Mortgages. Under no circumstance may Tenant mortgage or otherwise encumber Tenant’s interest and estate
in and to the Demised Premises as a whole (the “Leasehold Estate”) or in part under one or more mortgages, deeds of trust or other instruments, except upon the prior written consent of Landlord Mortgagee, which may be
withheld, conditioned or delayed in Landlord Mortgagee’s sole discretion. 
 15.2 Rights of Lenders to Obtain Collateral.
(a) Landlord agrees to use commercially reasonable efforts to accommodate reasonable requests by Tenant and Tenant’s Affiliates relating to the financing arrangements of Tenant and its Affiliates, with respect to the rights of secured
creditors to access the Demised Premises to take possession and dispose of assets of Tenant or its Affiliates pledged to such secured creditors. 

(b) So long as the Lands’ End Agreements are in effect, Landlord agrees (with respect to the applicable Lands’ End Space), at no
cost or expense to Landlord and without abrogating or limiting any other rights of Landlord under the Master Lease, to accommodate commercially reasonable requests of Lands’ End and its Affiliates relating to the financing arrangements of
Lands’ End and its Affiliates with respect to the rights of secured creditors to access the applicable Lands’ End Space to take possession and dispense of assets of Lands’ End and its Affiliates pledged to such secured creditors. 

ARTICLE XVI 

NO MERGER 
 16.1
No Merger. There shall be no merger of this Master Lease or of the leasehold estate created hereby by reason of the fact that the same Person may acquire, own or hold, directly or indirectly, (i) this Master Lease or the leasehold
estate created hereby or any interest in this Master Lease or such leasehold estate and (ii) the fee estate in the Demised Premises. 

ARTICLE XVII 

CONVEYANCE BY LANDLORD 

17.1 Conveyance by Landlord. Without limiting any provisions herein with respect to any Successor Landlord, if Landlord or any
successor owner of the Demised Premises shall convey the Demised Premises as an entirety, other than as security for a debt, and the grantee or transferee expressly assumes all obligations of Landlord arising after the date of the conveyance,
Landlord or such successor owner, as the case may be, shall thereupon be released absolutely and unconditionally from all future liabilities and obligations of Landlord under this Master Lease arising or accruing from and after the date of such
conveyance or other transfer and all such future liabilities and obligations shall thereupon be binding upon the new owner. 

  
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 ARTICLE XVIII  

QUIET ENJOYMENT 

18.1 Quiet Enjoyment. So long as Tenant shall pay the Rent as the same becomes due and shall comply with all of the other terms
of this Master Lease and fully perform its obligations hereunder, Tenant shall peaceably and quietly have, hold and enjoy the Demised Premises for the Term, free of any claim or other action by Landlord or anyone claiming by, through or under
Landlord, including without limitation any Landlord Mortgagee, but subject to all Encumbrances, and all liens and encumbrances after the date hereof provided for in this Master Lease or consented to by Tenant in writing where such consent is
required, further subject to the terms and conditions of the SNDA. No failure by Landlord to comply with the foregoing covenant shall give Tenant any right to cancel or terminate this Master Lease or abate, reduce or make a deduction from or offset
or receive a credit against the Rent or any other sum payable under this Master Lease, or to fail to perform any other obligation of Tenant hereunder. Notwithstanding the foregoing, Tenant shall have the right, by separate and independent action, to
pursue any claim it may have against Landlord as a result of a breach by Landlord of the covenant of quiet enjoyment contained in this Section 18.1, subject to Section 21.3. 

ARTICLE XIX  

NOTICES 
 19.1
Notices. Any notice, request or other communication required or desired to be given by any party hereunder shall be in writing and shall be sent by registered or certified mail, postage prepaid and return receipt requested, by hand
delivery or express or overnight courier service, or by facsimile transmission, to the following address and/or facsimile number: 
  

			
	To Tenant:		Sears Holdings Corporation
			3100 W. Big Beaver Road
			Troy, MI 48084-3163
		
			Attention:
			   Vice President of Real Estate

		
	With a copy to: (which shall not constitute notice)		 Sears Holdings Corporation
 3100 W.
Big Beaver Road
 Troy, MI 48084-3163

	
	
		
			Attention:
			   Associate General Counsel of Real Estate

  
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	To Landlord:		Seritage Growth Properties
			54 W. 40th Street
			Suite 10N
			New York, NY 10018
		
			Attention: Matthew Fernand
			   Executive Vice President and General Counsel

		
	With a copy to: (which shall not constitute notice):		 Seritage Growth Properties
 54 W. 40th Street
 Suite 10N

New York, NY 10018

	
	
	
		
			Attention: Mary Rottler
			   Executive Vice President of Leasing and Operations

 or to such other address as either party may hereafter designate. Notice given in accordance with this
Section 19.1 shall be deemed to have been given (a) if by hand or by express or overnight courier service, on the date of personal delivery, if such delivery is made on a Business Day, or if not, on the first (1st) Business Day
after delivery; if delivery is refused, Notice shall be deemed to have been given on the date delivery was first attempted; and (b) if by mail, on the third (3rd) Business Day after mailing; and (c) if by facsimile transmission, upon
confirmation that such Notice was received at the number specified by the party or in a Notice to the sender. 
 ARTICLE XX 

 ENVIRONMENTAL INDEMNITY 

20.1 Hazardous Substances. Tenant shall not allow any Hazardous Substance to be located in, on, under or about the Demised
Premises or incorporated in any Property; provided, however, that Hazardous Substances may be brought, kept, used or disposed of in, on or about the Demised Premises in quantities and for purposes similar to those brought, kept, or
properly used or disposed of, from, in, on or under similar facilities used for purposes similar to the uses conducted at the Stores in the ordinary course of business as of the date of this Master Lease and which are brought, kept, used and
disposed of in compliance with Legal Requirements, including with respect to the operation of SACs. Tenant shall not allow the Demised Premises to be used as a waste disposal site, or for the management, use, generation, manufacturing, labeling,
registration, production, handling, storage, release, discharge, emitting, injecting, abandoning, dumping, disposal, treatment, transportation or distribution or disposal of any Hazardous Substance, other than in the ordinary course of the business
conducted at the Demised Premises in compliance with applicable Legal Requirements (“Environmental Ordinary Course of Business”). 

20.2 Notices. Tenant shall provide to Landlord, within five (5) Business Days after Tenant’s receipt thereof, a copy
of any notice or notification (a) from a government agency with respect to (i) any violation of a Legal Requirement (other than a Non-Release Violation (as hereinafter defined)) relating to Hazardous Substances located in, on, or under the
Demised 

  
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Premises or any adjacent property, (ii) any enforcement, cleanup, removal, or other governmental or regulatory action instituted, completed or threatened with respect to the Demised
Premises; (b) with respect to any reports made to any federal, state or local environmental agency arising out of or in connection with any Hazardous Substance in, on, under or removed or migrating from the Demised Premises, including any
complaints, notices, warnings or assertions of violations in connection therewith, other than with respect to any Non-Release Violations and (c) with respect to any claim made by any Person against Tenant or the Demised Premises relating to
damage, contribution, cost recovery, compensation, loss, or injury resulting from or claimed to result from any Hazardous Substance. 

20.3 Remediation. (a) Tenant shall diligently and in good faith perform all remediation work described on Schedule
20.3 to the Side Letter and shall perform the same by the deadlines set forth on Schedule 20.3 to the Side Letter, subject to Force Majeure; provided, that if Tenant is unable to remediate any applicable condition
within the required time period notwithstanding its use of commercially reasonable efforts to do so, then, so long as (i) Tenant diligently and expeditiously proceeds to complete such remediation and (ii) the failure to complete
remediation does not (A) involve matters imminent to protection of human health and safety, (B) does not endanger any tenant, patron or other occupant of the Property or the general public and (C) does not materially and adversely
affect the value of the applicable Demised Premises or result in a default by Landlord under any third-party lease or Operating Agreement, such time period shall be extended to such further date as may be requested by Tenant and approved by Landlord
in its reasonable discretion. Additionally, if Tenant (a) is or becomes aware of any Known Environmental Problem that involves the presence, a release or poses a potential release of a Hazardous Substance or material harm to human health or
safety or for which there is a requirement under applicable Environmental Law to conduct an investigation or remediation, (b) receives notice from a government agency of a violation of any Legal Requirement relating to any Hazardous Substance
(excepting administrative. ministerial, recordkeeping, product labelling or information violations, and similar violations which do not involve any presence, release or potential release of Hazardous Substances, and violations which are promptly
corrected upon discovery, individually a “Non-Release Violation” and collectively, “Non-Release Violations”) in, on, under or about the Demised Premises, or any proximate property which is caused or alleged to be caused by
Tenant, or any of Tenant’s Related Users, or (c) if Tenant, Landlord or the Demised Premises becomes subject to any order of any federal, state or local agency to repair, investigate, close, detoxify, decontaminate or otherwise remediate
the Demised Premises, or if Landlord becomes aware of the circumstances described in clauses (a) through (c), Tenant shall promptly notify Landlord of such event (or Landlord shall promptly notify Tenant of such event (as applicable)), and, at
its sole cost and expense, Tenant shall cure such violation or effect such repair, investigation, closure, detoxification, decontamination or other remediation as is required by applicable Environmental Law. If Tenant fails to implement and
diligently pursue any such cure, investigation, repair, closure, detoxification, decontamination or other remediation to the satisfaction of the applicable regulatory authority as evidenced by the issuance of a “no further
action/remediation” letter or similar instrument, Landlord shall have the right, but not the obligation, to carry out such action upon reasonable prior notice to Tenant and to recover from Tenant all of Landlord’s costs and expenses
incurred in connection therewith in accordance with applicable Environmental Law. 

  
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 (b) Notwithstanding any other provisions to the contrary contained in Sections 1.6,
1.7, 1.8, or 1.9, or elsewhere in this Master Lease: 
 (i) as of the Commencement Date, Landlord
acknowledges receipt of environmental reports which disclose the existence of various Known Environmental Problems with respect to various Properties described on Schedule 20.3 to the Side Letter. Landlord understands and agrees that
conditions may be such that remediation of such Known Environmental Problems, may not be completed within the time frames otherwise designated in this Master Lease, including by reason of the nature and extent of such Known Environmental Problems;
and 
 (ii) Landlord agrees that Tenant will be required to commence remediation activities with respect to any Known
Environmental Problems promptly after (x) Landlord’s and Tenant’s agreement on the appropriate remediation plan therefor in accordance with applicable Legal Requirements with respect to matters disclosed in such environmental reports
as set forth on Schedule 20.3 to the Side Letter, and to complete remediation of Known Environmental Problems within a reasonable period of time and using reasonable diligence in accordance with the standard industry practices and in
conformity with applicable Legal Requirements, including after the expiration or termination of this Master Lease with respect to any individual Demised Premises. 

(c) To the extent that Tenant shall fund any Landlord Mortgage reserve for environmental remediation in accordance with Schedule
20.3 to the Side Letter, Tenant’s obligation to perform the environmental remediation relating to such reserves shall be conditioned upon Landlord’s release of such funds (or an equivalent amount) to Tenant in connection with the
performance of such work so long as Tenant has complied with its obligations under Section 21.26. Notwithstanding the foregoing, to the extent funds have been released from such reserve but are not sufficient to complete the
environmental remediation in accordance with Schedule 20.3, Tenant shall remain obligated to complete such environmental remediation at Tenant’s sole cost and expense. 

20.4 Indemnity. Tenant shall indemnify, defend, protect, save, hold harmless, and reimburse Landlord and all Indemnified Parties
for, from and against any and all costs, losses (including, losses of use or economic benefit or diminution in value), liabilities, damages, assessments, lawsuits, deficiencies, demands, claims and expenses (collectively, “Environmental
Costs”), whether or not arising out of third-party claims and regardless of whether liability without fault is imposed, or sought to be imposed, on Landlord, or on the Demised Premises, incurred in connection with, arising out of,
resulting from or incident to, directly or indirectly, any and all Known Environmental Problems before, during or after the Term, including (i) the production, management, use, generation, manufacture, labeling, registration, storage,
treatment, transporting, disposal, discharge, spilling, leaking, emitting, injecting, escaping, abandoning, dumping, release or other handling or disposition of any Hazardous Substances from, in, on or about the Demised Premises (collectively,
“Handling”), including the effects of such Handling of or exposure to any Hazardous Substances on any Person or property within or outside the boundaries of the Demised Premises, (ii) the presence of any Hazardous
Substances in, on, under 

  
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or about the Demised Premises and (iii) the violation of any Environmental Law. “Environmental Costs” include interest, costs of response, removal, remedial action, containment,
cleanup, investigation, design, engineering and construction, damages (including actual and consequential damages) for personal injuries and for injury to, destruction of or loss of property or natural resources, relocation or replacement costs,
penalties, fines, charges or expenses, attorneys’ fees, expert fees, consultation fees, and court costs, and all amounts paid in investigating, defending or settling any of the foregoing. 

20.5 Environmental Inspections. (a) In the event that Landlord has a reasonable basis to believe that Tenant is in breach
of its obligations under this Article XX, or that there may exist any violation of Environmental Law or presence of Hazardous Substances in excess of an applicable standard that would require investigation, remediation or other
corrective action pursuant to Environmental Law in, on, from, under or about any Demised Premises, or if Landlord desires to do so in connection with the prospective sale, leasing, financing, development or development of any portion of the Property
(including the Demised Premises), Landlord shall have the right, from time to time, during normal business hours and upon not less than fifteen (15) days’ Notice to Tenant, except in the case of an emergency, in which event no notice shall
be required, to conduct (or cause to be conducted) an inspection of the Demised Premises to determine the existence of such violation of Environmental Law or such presence of Hazardous Substances. During said 15-day period, at Tenant’s request
Landlord’s environmental representatives shall meet and confer in good faith with Tenant’s environmental representatives, in an attempt to agree on a potential plan of action for any such inspection, including testing, sampling and
monitoring, in a commercially reasonable and cost-effective manner. At the expiration of such 15-day period (except in the case of an emergency), Landlord shall have the right to enter and inspect the Demised Premises, conduct any testing,
monitoring, sampling and analyses (collectively, “Inspections”) it deems reasonably necessary and shall have the right to inspect materials brought into the Demised Premises, subject to any agreed plan of action with Tenant
(if any). Landlord may, in its reasonable discretion, retain such experts to conduct the Inspections and to prepare a written report in connection therewith. All reasonable costs and expenses incurred by Landlord under this Section 20.5
with respect to any Known Environmental Problems shall be paid on demand as Additional Charges by Tenant to Landlord, any failure to pay the same shall bear interest and be subject to terms of conduct by Tenant as provided with respect to
Environmental Costs in Section 20.4. Failure to conduct an environmental inspection or to detect unfavorable conditions if such inspection is conducted shall in no fashion be intended as a release of any liability for Known Environmental
Problems. Tenant shall remain liable for any environmental condition related to or having occurred during its tenancy and any Known Environmental Problem regardless of when such conditions are discovered and regardless of whether or not Landlord
conducts an environmental inspection at the termination of this Master Lease. The obligations set forth in this Article XX shall survive the expiration or earlier termination of this Master Lease with respect to any or all Demised
Premises for any reason whatsoever. 
 (b) All Inspections shall be conducted during normal business hours (except in an emergency) and a
representative of Tenant shall have the right to be present (except in an emergency if no notice is practicable). Landlord and its representatives shall take reasonable care (i) to minimize disturbance of the operations of the Demised Premises,
in the course of any Inspections, except in the case of an emergency, and (ii) not to cause any damage or injury to the 

  
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Demised Premises or Tenant’s Property, and Landlord shall be responsible for all negligent acts and omissions for all representatives it brings upon the Demised Premises; provided,
that Landlord shall not be responsible for any claims, costs, expenses, loss or damages for any existing environmental conditions or matters except to the extent that the same may be exacerbated by Landlord or its representatives by such negligence.
Landlord shall maintain (or cause its contractors and experts to maintain) customary insurance coverage with customary limits with respect to all Inspections. 

20.6 Additional Provisions. With respect to the Demised Premises and all SACs, Tenant shall comply with all of the additional
terms, conditions and provisions set forth on Schedule 20.6, subject to the express provisions of this Article XX. 

20.7 Survival. Tenant’s liability under this Article XX shall survive the expiration or earlier termination of
this Master Lease. 
 ARTICLE XXI  

MISCELLANEOUS 

21.1 Survival. Notwithstanding anything to the contrary contained in this Master Lease, all terms, conditions, covenants and
provisions with respect to Tenant’s obligations hereunder (including, without limitation, all claims against, and liabilities and indemnities of, Tenant) arising or accruing prior to or on the expiration or earlier termination of this Master
Lease shall survive such expiration or termination of this Master Lease. For avoidance of doubt, no termination of this Master Lease with respect to part or all of any one or more Demised Premises at any one or more Properties in accordance with the
terms of this Master Lease, except as otherwise expressly set forth herein, shall have no impact on the effectiveness of this Master Lease with respect to any Demised Premises or Properties which have not been so terminated. 

21.2 Partial Invalidity. If any provision, term, covenant or condition of this Master Lease or the application thereof to any
Person or circumstance shall, to any extent, be determined by a court of competent jurisdiction or any arbitrator to be invalid or unenforceable, the remainder of this Master Lease, or the application of such provision, term, covenant or condition
to Persons or circumstances other than those as to which it is held invalid or unenforceable, shall not be affected thereby and each provision, term, covenant or condition of this Master Lease shall be valid and be enforced to the fullest extent
permitted by law. 
 21.3 Non-Recourse. Tenant specifically agrees to look solely to the equity interest of Landlord in the
Demised Premises as it exists from time to time for the satisfaction of any claim or liability of Landlord under this Master Lease, and Tenant shall not institute any action or proceeding against, nor seek to recover any judgment from, Landlord
personally or against any Property, but Landlord’s sole liability hereunder shall be limited solely to its equity interest in the Demised Premises from time to time, and no recourse under or in respect of this Master Lease shall be had against
any other assets of Landlord or against any Person having an interest in Landlord or any such Person’s assets whatsoever. Without limiting the foregoing, it is specifically agreed that no constituent partner, member or shareholder or owner of
any beneficial or equitable interest in Landlord or any manager, managing member, director, officer or employee of Landlord shall ever be personally liable nor shall any personal assets of any such Person ever

  
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be liable for any such claim, liability or judgment or for the payment of any monetary obligation to Tenant. Furthermore, except as otherwise expressly provided herein, in no event shall Landlord
ever be liable to Tenant nor shall Tenant ever be liable to Landlord for any indirect, speculative or consequential damages suffered by Tenant or Landlord, as the case may be, from whatever cause. 

21.4 Successors and Assigns. This Master Lease shall be binding upon Landlord and its successors and assigns, and upon Tenant
and its permitted successors and assigns pursuant to Article IX. 
 21.5 Governing Law. THIS MASTER LEASE WAS
NEGOTIATED IN THE STATE OF NEW YORK, WHICH STATE THE PARTIES AGREE HAS A SUBSTANTIAL JURISDICTIONAL RELATIONSHIP TO THE PARTIES AND TO THE UNDERLYING TRANSACTION EMBODIED HEREBY. ACCORDINGLY, IN ALL RESPECTS THIS MASTER LEASE (AND ANY AGREEMENT
FORMED PURSUANT TO THE TERMS HEREOF) SHALL BE GOVERNED BY, AND CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK (WITHOUT REGARD TO PRINCIPLES OR CONFLICTS OF LAW) AND ANY APPLICABLE LAWS OF THE UNITED STATES OF
AMERICA, EXCEPT THAT ALL PROVISIONS HEREOF RELATING TO THE CREATION OF THE LEASEHOLD ESTATE AND ALL REMEDIES SET FORTH IN ARTICLE XIV RELATING TO RECOVERY OF POSSESSION OF THE DEMISED PREMISES (SUCH AS AN ACTION FOR UNLAWFUL DETAINER, IN
REM ACTION OR OTHER SIMILAR ACTION) (COLLECTIVELY, “LOCAL REMEDIES”) SHALL BE CONSTRUED AND ENFORCED ACCORDING TO, AND GOVERNED BY, THE LAWS OF THE STATE IN WHICH THE DEMISED PREMISES IS LOCATED. 

21.6 Consent to Jurisdiction; Waiver of Trial by Jury. EACH PARTY HERETO IRREVOCABLY SUBMITS TO THE EXCLUSIVE JURISDICTION OF
ANY STATE OR FEDERAL COURT LOCATED WITHIN THE COUNTY OF NEW YORK IN THE STATE OF NEW YORK FOR THE PURPOSES OF ANY SUIT, ACTION OR OTHER PROCEEDING ARISING OUT OF THIS MASTER LEASE (INCLUDING ANY BREACH HEREOF) OR ANY TRANSACTION
CONTEMPLATED HEREBY OR THEREBY, AND AGREES TO COMMENCE ANY SUCH ACTION, SUIT OR PROCEEDING ONLY IN SUCH COURTS, EXCEPT WITH RESPECT TO ANY LOCAL REMEDIES. EACH PARTY FURTHER AGREES THAT SERVICE OF ANY PROCESS, SUMMONS, NOTICE OR DOCUMENT BY UNITED
STATES REGISTERED MAIL TO SUCH PARTY’S RESPECTIVE ADDRESS SET FORTH HEREIN SHALL BE EFFECTIVE SERVICE OF PROCESS FOR ANY SUCH ACTION, SUIT OR PROCEEDING. EACH PARTY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY OBJECTION TO THE LAYING OF VENUE OF
ANY ACTION, SUIT OR PROCEEDING ARISING OUT OF THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY IN SUCH COURTS, AND HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES AND AGREES NOT TO PLEAD OR CLAIM IN ANY SUCH COURT THAT ANY SUCH
ACTION, SUIT OR PROCEEDING BROUGHT IN ANY SUCH COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM. EACH OF LANDLORD AND TENANT ACKNOWLEDGES THAT IT HAS HAD THE ADVICE OF COUNSEL OF ITS CHOICE WITH RESPECT TO ITS

  
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RIGHTS TO TRIAL BY JURY UNDER THE CONSTITUTION OF THE UNITED STATES AND THE STATE. EACH OF LANDLORD AND TENANT HEREBY EXPRESSLY WAIVES ANY RIGHT TO TRIAL BY JURY OF ANY CLAIM, DEMAND, ACTION OR
CAUSE OF ACTION (i) ARISING UNDER THIS MASTER LEASE (OR ANY AGREEMENT FORMED PURSUANT TO THE TERMS HEREOF) OR (ii) IN ANY MANNER CONNECTED WITH OR RELATED OR INCIDENTAL TO THE DEALINGS OF LANDLORD AND TENANT WITH RESPECT TO THIS MASTER
LEASE (OR ANY AGREEMENT FORMED PURSUANT TO THE TERMS HEREOF) OR ANY OTHER INSTRUMENT, DOCUMENT OR AGREEMENT EXECUTED OR DELIVERED IN CONNECTION HEREWITH, OR THE TRANSACTIONS RELATED HERETO OR THERETO, IN EACH CASE WHETHER NOW EXISTING OR HEREINAFTER
ARISING, AND WHETHER SOUNDING IN CONTRACT OR TORT OR OTHERWISE; EACH OF LANDLORD AND TENANT HEREBY AGREES AND CONSENTS THAT ANY SUCH CLAIM, DEMAND, ACTION OR CAUSE OF ACTION SHALL BE DECIDED BY A COURT TRIAL WITHOUT A JURY, AND THAT EITHER PARTY MAY
FILE A COPY OF THIS SECTION 21.6 WITH ANY COURT AS CONCLUSIVE EVIDENCE OF THE CONSENT OF EACH SUCH PARTY TO THE WAIVER OF ITS RIGHT TO TRIAL BY JURY. 

21.7 Entire Agreement. This Master Lease and the Exhibits and Schedules hereto, the Side Letter and the SNDA constitute the
entire and final agreement of the parties with respect to the subject matter hereof, and may not be changed or modified except by an agreement in writing signed by the parties, and no such change or modification to any specific provision of this
Master Lease shall be effective without the explicit reference to the applicable Section by number and paragraph (if any). Landlord and Tenant hereby agree that all prior or contemporaneous oral or written understandings, agreements or negotiations
relative to the leasing of the Demised Premises or the execution of this Master Lease are merged and integrated into, and revoked and superseded, by this Master Lease. Notwithstanding the foregoing, this Master Lease shall govern and supersede the
Purchase Agreement in all respects with regard to the matters referred to in the Purchase Agreement in Article V and Section 4.3 thereof. 

21.8 Headings. All titles and headings to sections, subsections, paragraphs or other divisions of this Master Lease are only for
the convenience of the parties and shall not be construed to have any effect or meaning with respect to the other contents of such sections, subsections, paragraphs or other divisions, such other content being controlling as to the agreement among
the parties hereto. 
 21.9 Counterparts. This Master Lease may be executed in any number of counterparts, each of which shall
be a valid and binding original, but all of which together shall constitute one and the same instrument. 
 21.10
Interpretation. Both Landlord and Tenant have been represented by counsel and this Master Lease and every provision hereof has been freely and fairly negotiated. Consequently, all provisions of this Master Lease shall be interpreted
according to their fair meaning and shall not be strictly construed against any party. 

  
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 21.11 Time of Essence. TIME IS OF THE ESSENCE OF THIS MASTER LEASE AND EACH
PROVISION HEREOF IN WHICH TIME OF PERFORMANCE IS ESTABLISHED. 
 21.12 Further Assurances. The Parties agree to execute,
acknowledge and deliver to each other Party and/or such other Persons as a Party may request, all documents reasonably requested by any Party to give effect to the provisions and intent of this Master Lease. 

21.13 Landlord’s Right to Inspect and Show the Demised Premises. In addition to all other rights of Landlord hereunder,
upon reasonable advance notice to Tenant which may be given verbally to the Store manager with not less than forty-eight (48) hours’ notice (except in the case of an emergency), Landlord and its authorized representatives shall have the
right to inspect the Demised Premises and to show the Demised Premises to potential purchasers, tenants and lenders at all reasonable times during usual business hours. Landlord and its representatives shall take reasonable care to minimize
disturbance of the operations of the Demised Premises, except in the case of an emergency, and not to cause any damage or injury to the Demised Premises or Tenant’s Property, and Landlord shall be responsible for all acts and omissions for all
representatives it brings on the Demised Premises. Tenant and its representatives shall have the right to be present during any and all such inspections. 

21.14 Acceptance of Surrender. No surrender to Landlord of this Master Lease or of the Demised Premises or any part thereof, or
of any interest therein, shall be valid or effective until and unless agreed to and accepted in writing by Landlord, and no act by Landlord or any representative or agent of Landlord, other than written acceptance by Landlord, shall constitute an
acceptance of any such surrender. 
 21.15 Non-Waiver. The failure of Landlord or Tenant to insist, in any one or more
instances, upon a strict performance of any of the covenants, conditions, terms or provisions of this Master Lease, or to exercise any election, option, right or remedy herein contained (collectively, “Lease Provisions”),
shall not be construed as a waiver or a relinquishment of such Lease Provisions or a waiver for the future of any of the same or any other Lease Provisions, but the same shall continue and remain in full force and effect. The receipt by Landlord of
Rent or payment of Rent by Tenant, with knowledge of the breach of any Lease Provisions for which Tenant is obligated or liable, shall not be deemed a waiver of such breach. No waiver by Landlord or Tenant of any Lease Provisions shall be deemed to
have been made unless expressed in writing and signed by Landlord or Tenant, as the case may be. 
 21.16 Accord and
Satisfaction. Without limiting the foregoing provisions of Section 21.15, no payment by Tenant or receipt by Landlord of a lesser amount than the full amount of Rent herein stipulated shall be deemed to be other than on account
of the earliest stipulated or required payments of Rent, nor shall any endorsement or statement on any check or any letter accompanying any check or confirmation of any Wire Transfer or other payment as Rent be deemed an accord and satisfaction, and
Landlord may accept such check, Wire Transfer or other payment without prejudice to Landlord’s right to recover the balance of such Rent (with late charges and interest as provided herein) or pursue any other remedy provided in this Master
Lease or at law or in equity. 

  
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 21.17 Recording. Tenant shall not record this Master Lease without the written
consent of Landlord, but Tenant may record any SNDA. 
 21.18 Liens. Subject to the express provisions hereof with respect to
Tenant’s (or an Affiliate of Tenant’s, as the case may be) performance of Recapture Restoration Work and/or Recapture Related Repairs which has been required and authorized by Landlord in accordance with Section 1.6 or
Section 10.1 (“Landlord Authorized Work”), Tenant shall have no power to do any act or make any contract which may create or be the foundation for any lien, mortgage or other encumbrance upon the estate of
Landlord or of any interest of Landlord in the Demised Premises or the Property, or upon or in the building or buildings or improvements thereon or hereafter erected or placed thereon, it being agreed that should Tenant cause any improvements,
alterations or repairs to be made to the Demised Premises, or material furnished or labor performed therein, or thereon, except for Landlord Authorized Work, neither Landlord nor the Demised Premises nor any improvements shall under any
circumstances be liable for the payment of any expense incurred or for the value of any work done or material furnished to the Demised Premises or any part thereof. Subject to Landlord’s payment obligations for any Landlord Authorized Work, all
such improvements, alterations, repairs, materials and labor shall be done at Tenant’s expense and Tenant shall be solely and wholly responsible to contractors, laborers and material men furnishing labor and material to said premises and
building or buildings and improvements or any part thereof and all such laborers, material men and contractors are hereby charged with notice that they must look solely and wholly to Tenant and Tenant’s interest in the Demised Premises to
secure the payment of any bills for work done and materials furnished. 
 In addition to all other rights and remedies of Landlord, in the
event that a mechanic’s lien shall be filed against the Demised Premises or Tenant’s interest therein or against the Property or any applicable Shopping Center or any part thereof as the result of any repairs, fixturing, alterations or
other work undertaken by Tenant (subject to Landlord’s payment obligations with respect to Landlord Authorized Work), Tenant shall, within twenty-one (21) days (or such shorter period as may be required pursuant to the terms of any REA)
after receiving notice of such lien, discharge such lien either by payment of the indebtedness due or by filing a bond (as provided by statute) or by providing a surety bond for one hundred twenty five percent (120%) of the amount of such lien
as security therefor, or a title indemnity from a nationally recognized title insurer. In the event that Tenant shall fail to bond or discharge such lien, or provide such security or title indemnity for such lien, provided, that Landlord has
complied with its payment obligations with respect to Landlord Authorized Work, Landlord may, but shall not be obligated to, in addition to all other rights and remedies in this Master Lease, have the right to procure such discharge by filing such
bond and Tenant shall pay the cost of such bond to Landlord (together with interest at the Overdue Rate) as Additional Charges upon the first day that Rent shall be due thereafter. 

21.19 Cumulative Remedies. Each and every one of the rights, remedies and benefits provided by this Lease to Landlord and Tenant
shall be cumulative and shall not be exclusive of any other such rights, remedies and benefits allowed by law. 
 21.20 Rules and
Regulations. From and after the Multi-Tenant Occupancy Date, Landlord reserves the right to promulgate reasonable, nondiscriminatory rules and regulations from time to time pertaining to the Demised Premises and the Property;
provided, that the same 

  
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do not unreasonably or materially interfere with Tenant’s business or access to the Demised Premises or materially increase Tenant’s obligations or materially decrease Tenant’s
rights or remedies hereunder. Tenant agrees to comply with and observe all such nondiscriminatory rules and regulations promulgated in accordance with this Section 21.20 and as to which it has received adequate prior Notice providing
Tenant with sufficient time to comply with such rules. Failure by Tenant to keep and observe such rules and regulations shall constitute a breach of this Master Lease as if the same were contained herein as covenants of Tenant. 

21.21 Confidentiality and Media Releases. The Parties hereby agree not to disclose any of the terms of this Master Lease to any
person or entity not a party to this Master Lease, nor shall either Party, without the prior written consent of the other, issue any press or other media releases or make any public statements relating to the terms or provisions of this Master
Lease; provided, however, that either Party may make necessary disclosures to (i) potential lenders, investors, purchasers, subtenants, assignees, attorneys, advisors, consultants, accountants and economic development authorities
and/or as may be required by applicable laws or court order, so long as such Parties agree to keep all of the terms of this Master Lease strictly confidential to the extent practicable, and except as may be required pursuant to applicable law, or
(ii) any lender, investor or prospective investor, rating agency, counsel, advisor, consultant or accountant in connection with a securitization and/or sale of a loan. 

21.22 Authority. The Parties hereto represent and warrant to each other that the person(s) executing this Master Lease on behalf
of Landlord or Tenant, as the case may be, have been duly authorized by all requisite corporate or other action of Landlord or Tenant, as the case may be, so that upon such execution this Master Lease will be binding upon and enforceable against
each Party in accordance with its terms, subject to general equitable principles and the laws of insolvency and bankruptcy. Landlord and Tenant agree to furnish to the other Party from time to time upon request such written proof of such
authorization as either Party may reasonably request. 
 21.23 Overdue Rate. In addition to all other rights and remedies of
Landlord in this Master Lease, in the event that Landlord shall incur any cost or expense on behalf of Tenant (including curing or payment or discharge of any liability or obligation of Tenant or any breach or default by Tenant hereunder), whether
or not there is an Event of Default, which is not paid to Landlord by Tenant within five (5) Business Days of Landlord’s demand therefor accompanied by an invoice in reasonable detail, the same shall bear interest at the Overdue Rate from
the date of demand until paid in full and shall constitute Additional Charges. 
 21.24 Delivery of Information.
(a) Within seventy-five (75) days after the end of each Fiscal Year and within forty (40) days after the end of each fiscal quarter of Tenant’s Parent during the Term, Tenant shall deliver to Landlord Financial Statements for the
Fiscal Year or quarter, as the case may be, then ended. 
 (b) Tenant shall also deliver the following additional financial information to
Landlord (in the forms provided in Schedule 21.24): 
 (i) no later than the time of delivery of
Financial Statements pursuant to clause (a) above, statements of EBITDA and EBITDAR with respect to each Store, and all Stores Collectively for the four-quarter period then ended; 

  
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 (ii) on a monthly basis, within thirty (30) days after the end of each
month during the Term, (x) with respect to each Sears Store or Kmart Store, monthly sales and profit and loss reports with respect to each Demised Premises and (y) with respect to each Sears Store or Kmart Store as to which the
Multi-Tenant Occupancy Date has not yet occurred, a certification as follows: that Tenant is current in its payment of all CAM Expenses, Utility Charges and Operating Expenses (if any) payable by Tenant pursuant to this Master Lease in accordance
with all applicable grace periods and no such payments are overdue in excess of such grace periods except for matters being disputed by Tenant in good faith as described on a schedule to such certificate; 

(iii) prompt notice (containing reasonable detail) of any material changes in the financial or physical condition of any
Property, including any termination of a material lease and any termination or cancellation of terrorism or other insurance required by the Landlord Mortgage; 

(iv) as promptly as reasonably practicable, all such other financial statements and information as Landlord may reasonably
request, including to enable Landlord to comply with all voluntary and mandatory financial reporting requirements of Landlord under all Legal Requirements and under the Landlord Mortgage, including with respect to any requirements of any member of
Landlord (or any Affiliate of any member of Landlord), their successors, and assigns, with respect to status as a REIT; and 

(v) on a quarterly basis, within forty (40) days after the end of each calendar quarter during the Term, with respect to
each Sears Store or Kmart Store reported in Section 21.24(b)(ii)(y), a statement describing all CAM Expenses, Utility Charges and Operating Expenses (if any) paid by Tenant pursuant to this Master Lease. 

Subject to the next succeeding sentence, all such Financial Statements and additional financial information, and information derivative therefrom
(collectively, “Tenant Confidential Information”, shall be held strictly confidential by Landlord and shall not be shared or disclosed by Landlord (except to its members, employees, representatives, agents, accountants and
attorneys and Landlord shall cause its members, employees, representatives, agents, accountants and attorneys to not disclose the same) until and unless Tenant has made such information public and except pursuant to Legal Requirements or legal
process. Notwithstanding the foregoing, Landlord may disclose Tenant Confidential Information to (i) the agents and actual or prospective lenders in respect of the Landlord Mortgage in accordance with the Landlord Mortgage Documents,
(ii) any lender, investor or prospective investor, rating agency, counsel, advisor, consultant or accountant in connection with a securitization and/or sale of a loan, and (iii) actual or prospective equity investors in or purchasers of
equity interests in Landlord, Guarantor or this Master Lease or any interests therein who have executed with Tenant a customary confidentiality agreement in a form that has been reasonably approved by Tenant for this purpose. 

  
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 21.25 Puerto Rico Premises. Landlord covenants and agrees with Tenant, its
successors and assigns, that Landlord, its successors and assigns, shall not (and shall not have any power or authority to) sell, convey, lease, assign, or otherwise transfer (“Sale”), or enter into any agreement, contract,
agreement for deed, lease, agreement for lease, or any option, right of first refusal, right of first offer, or right of first negotiation for with respect to any Sale (“Sale Agreement”), except with respect to (i) a
Landlord Mortgage, and (ii) unless Tenant has a right not to be disturbed based on the application of the terms of Section 4 of the SNDA, any foreclosure, deed-in-lieu of foreclosure or other exercise of rights or remedies under such
Landlord Mortgage and any subsequent sale by Landlord Mortgagee or a purchaser at foreclosure, with respect to (or any real property interest in) any Demised Premises or portion thereof located in Puerto Rico (“Puerto Rico
Premises”), unless all of the following have been strictly complied with, failure of any of which shall render any Sale to any third-party null and void ab initio: 

(a) Any such Sale and each such Sale Agreement shall be made expressly subject to this Master Lease and all of Tenant’s rights, remedies
and privileges hereunder with respect to the applicable Puerto Rico Premises, including the Tenant PR ROFO Rights set forth below (“Tenant PR Rights”); 

(b) Each buyer, purchaser, lessee or other transferee and each other counter-party (other than Landlord or its successor or assign,
collectively, “Sale Counter-Party”) to each Sale or Sale Agreement shall absolutely waive and release, to the fullest extent permitted by law, all rights to disavow any Tenant PR Rights by reason of the failure of Landlord or
Tenant to record any lease or notice of lease with respect to the Puerto Rico Premises or this Master Lease; 
 (c) Each Sale Counter-Party
shall agree in writing for the benefit of Tenant, its successors and assigns (each of whom shall be deemed third-party beneficiaries) that each such subsequent Sale or Sale Agreement entered into by any such Sale Counter-Party shall be expressly
subject to all of the Tenant PR Rights, and all of Tenant’s PR ROFO Rights; and 
 (d) Not less than thirty (30) days prior to any
proposed Sale or the proposed execution of any Sale Agreement, Landlord shall have provided Tenant with Notice of its intent to enter into a Sale or Sale Agreement and Tenant’s right to offer to purchase the Puerto Rico Premises which is the
subject of such Sale or Sale Agreement, followed by a thirty (30)-day period of good faith negotiation between Landlord and Tenant with regard to Tenant’s purchase of such Puerto Rico Premises. If Tenant does not exercise such right to
offer to purchase or the parties do not reach agreement during such 30-day negotiation period, Landlord shall provide Tenant with ten (10) days’ prior Notice of any subsequent Sale and any Sale Agreement with respect to such Puerto Rico
Premises, which Notice shall include evidence of Landlord’s compliance with all of the foregoing clauses (a)-(c), and all of Tenant’s PR ROFO Rights in this clause (d). This right of offer by Tenant shall apply with respect to each
separate Puerto Rico Premises; provided however, Tenant’s right of offer shall automatically be waived with respect to each Sale which otherwise fully complies with the foregoing clauses (a)-(c). In furtherance of said Tenant’s
right of offer, the Parties are recording a deed with respect thereto in the Registry of the Property of Puerto Rico. Landlord covenants and agrees to grant an additional ten (10)-year 

  
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right of offer with the same terms and conditions provided herein every nine (9) years during the Term of this Master Lease with respect to any of the Puerto Rico Premises (including all
renewal terms), commencing on the first day of the ninth (9th) anniversary of the Commencement Date and continuing on the first day of each ninth (9th) Lease Year thereafter, and the Parties covenant and agree to execute, acknowledge and deliver (in proper form for recording) without charge to either Party corresponding deeds to record the
aforementioned Tenant’s right of offer over the Puerto Rico Premises in the Registry of the Property of Puerto Rico. Tenant’s rights in this clause (d) are referred to as the “Tenant PR ROFO Rights”). 

21.26 Deferred Maintenance and Environmental Work. In connection with Tenant’s work pursuant to Schedules
10.1 and 20.3 to the Side Letter, Tenant has provided funds to Landlord which in turn have been provided by Landlord to Landlord Mortgagee to be held in and disbursed from the Deferred Maintenance and Environmental Escrow
Account (as defined in the Landlord Mortgage Documents) in accordance with the terms of the Landlord Mortgage Documents. In connection with Landlord satisfying the conditions set forth in the Landlord Mortgage Documents for the release and
disbursement of such funds to Tenant (which is a condition to Tenant’s performance or causing the performance of the work), Tenant agrees to reasonably cooperate with Landlord in good faith to permit Landlord to satisfy the conditions to
disbursement of the reserved funds set forth in Section 3.7(c) of the loan agreement that is part of the Landlord Mortgage Documents. 

ARTICLE XXII 

MEMORANDUM OF LEASE 

22.1 Memorandum of Lease. Landlord and Tenant covenant and agree to execute, acknowledge and deliver a short-form memorandum of
this Master Lease, in form suitable for recording under the laws of each state in which the applicable Demised Premises is located, at such time as Tenant has made an initial assignment of this Master Lease to an Affiliate, or at any other time upon
the request of Tenant. From time to time, upon request of either Party, the Parties shall execute, acknowledge and deliver amendments to such memoranda of lease (a) to reflect the termination of this Master Lease with respect to any Properties
as provided herein, and upon the final expiration or earlier termination of this Master Lease to the Demised Premises, and (b) as otherwise may be appropriate. Tenant shall pay all costs and expenses of recording such Memorandum of Lease and
any further memoranda of lease (except in connection with any New Lease) or in connection with any Recapture Space or Additional Recapture Space. 

ARTICLE XXIII 

BROKERS 
 23.1
Brokers. Tenant warrants that it has not had any contact or dealings with any real estate broker, agent or finder or other Person which would give rise to the payment of any fee, brokerage commission or other payment in connection with
this Master Lease, and Tenant shall indemnify, protect, hold harmless and defend Landlord and all Indemnified Parties from and against any claims, liability, damages, fees, costs or expenses, including reasonable attorneys’ fees and court costs
(including the same incurred in the enforcement of each indemnity) with respect to any fee, brokerage commission or other payment arising out of any act or omission of Tenant. Landlord warrants that it has not had any contact or dealings with any
real estate broker, 

  
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agent, finder or other Person which would give rise to the payment of any fee, brokerage commission or other payment in connection with this Master Lease, and Landlord shall indemnify, protect,
hold harmless and defend Tenant from and against any claims, liability, damages, fees, costs or expenses, including reasonable attorneys’ fees and court costs (including the same incurred in the enforcement of such indemnity) with respect to
any fee, brokerage commission or other payment arising out of any act or omission of Landlord. 
 ARTICLE XXIV  

ANTI-TERRORISM 

24.1 Anti-Terrorism Representations. Tenant hereby represents and warrants that neither Tenant, nor, to the knowledge of Tenant,
any persons or entities holding any legal or beneficial interest whatsoever in Tenant, are (a) the target of any sanctions program that is established by Executive Order of the President or published by the Office of Foreign Assets Control,
U.S. Department of the Treasury (“OFAC”); (b) designated by the President or OFAC pursuant to the Trading with the Enemy Act, 50 U.S.C. App. § 5, the International Emergency Economic Powers Act, 50 U.S.C.
§§ 1701-06, the Patriot Act, Public Law 107-56, Executive Order 13224 (September 23, 2001) or any Executive Order of the President issued pursuant to such statutes; or (c) named on the following list that is published by OFAC:
“List of Specially Designated Nationals and Blocked Persons” (collectively, “Prohibited Persons”). Tenant hereby represents and warrants to Landlord that no funds tendered to Landlord by Tenant under the terms of
this Master Lease are or will be directly or, to Tenant’s knowledge, indirectly derived from activities that may contravene U.S. federal, state or international laws and regulations, including anti-money laundering laws. If the foregoing
representations are untrue at any time during the Term and Landlord suffers actual damages as a result thereof, an Event of Default will be deemed to have occurred, without the necessity of notice to Tenant. 

Tenant will not during the Term of this Master Lease knowingly engage in any transactions or dealings, or knowingly be otherwise associated,
with any Prohibited Persons in connection with the use or occupancy of the Demised Premises. A breach of the representations contained in this Section 24.1 by Tenant as a result of which Landlord suffers actual damages shall constitute a
material breach of this Master Lease and shall entitle Landlord to any and all remedies available hereunder, or at law or in equity. 

ARTICLE XXV 

REIT PROTECTION 

25.1 REIT Protection. (a) The Parties hereto intend that Rent and all other amounts paid by Tenant hereunder will qualify
as “rents from real property” within the meaning of Section 856(d) of the Code, or any similar or successor provision thereto and this Master Lease shall be interpreted consistently with this intent. 

(b) Notwithstanding anything to the contrary contained in this Master Lease, Tenant shall not without Landlord’s advance written consent
(which consent shall not be unreasonably withheld) (i) sublet, assign or enter into a management arrangement for the Demised Premises on any basis such that the rental or other amounts to be paid by the subtenant, assignee or manager thereunder
would be based, in whole or in part, on either (x) the income or 

  
 118 

 
profits derived by the business activities of the subtenant, assignee or manager or (y) any other formula or allocation such that any portion of any amount received by Landlord (or received
or deemed to be received for U.S. federal income tax purposes by any member of Landlord (or any Affiliate of any member of Landlord)) would fail to qualify as “rents from real property” within the meaning of Section 856(d) of the
Code, or any similar or successor provision thereto; (ii) furnish or render any services to the subtenant, assignee or manager or manage or operate the Demised Premises so subleased, assigned or managed; (iii) sublet or assign to, or enter
into a management arrangement for the Demised Premises with, any Person (other than a “taxable REIT subsidiary” (within the meaning of Section 856(l) of the Code)) in which Tenant, Landlord or any member of Landlord (or any Affiliate
of any member of Landlord) owns an interest, directly or indirectly (by applying constructive ownership rules set forth in Section 856(d)(5) of the Code); or (iv) sublet, assign or enter into a management arrangement for the Demised
Premises in any other manner which could cause any portion of the amounts received by Landlord (or received or deemed to be received for U.S. federal income tax purposes by any member of Landlord (or any Affiliate of any member of Landlord))
pursuant to this Master Lease or any sublease to fail to qualify as “rents from real property” within the meaning of Section 856(d) of the Code, or any similar or successor provision thereto, or which could cause any other income of
Landlord or any member of Landlord (or any Affiliate of any member of Landlord) to fail to qualify as income described in Section 856(c)(2) of the Code. The requirements of this Section 25.1(b) shall likewise apply to any further
subleasing by any subtenant. 
 (c) Notwithstanding anything to the contrary contained in this Master Lease, the Parties acknowledge and
agree that Landlord, in its sole discretion, may assign this Master Lease or any interest herein to another Person (including, without limitation, a “taxable REIT subsidiary” (within the meaning of Section 856(l) of the Code)) to
maintain the status of any member of Landlord (or any Affiliate of any member of Landlord) as a “real estate investment trust” (within the meaning of Section 856(a) of the Code); provided, however, that Landlord shall be
required to (i) comply with any applicable legal requirements related to such transfer and (ii) give Tenant notice of any such assignment; and provided, further, that any such assignment shall be subject to all of the rights
of Tenant hereunder. 
 (d) Notwithstanding anything to the contrary contained in this Master Lease, upon request of Landlord, Tenant shall
cooperate with Landlord in good faith and at no cost or expense to Tenant, and provide such documentation and/or information as may be in Tenant’s possession or under Tenant’s control and otherwise readily available to Tenant as shall be
reasonably requested by Landlord in connection with verification of “real estate investment trust” (within the meaning of Section 856(a) of the Code) compliance requirements. Tenant shall take such reasonable action as may be
requested by Landlord from time to time to ensure compliance with the Internal Revenue Service requirement that Rent allocable for purposes of Section 856 of the Code to personal property, if any, at the beginning and end of a calendar year
does not exceed fifteen percent (15%) of the total Rent due hereunder as long as such compliance does not (i) increase Tenant’s monetary obligations under this Master Lease, (ii) materially and adversely increase Tenant’s
nonmonetary obligations under this Master Lease or (iii) materially diminish Tenant’s rights under this Master Lease. 

  
 119 

 ARTICLE XXVI 

FAIR MARKET RENT—APPRAISAL 

26.1 Fair Market Rent. In the event that it becomes necessary to determine the Fair Market Rent of any Demised Premises for any
purpose of this Master Lease, and the parties cannot agree amongst themselves on such value within twenty (20) days after the first request made by one of the parties to do so, then either party may notify the other of a person selected to act
as appraiser (such person, and each other person selected as provided herein, an “Appraiser”) on its behalf. Within fifteen (15) days after receipt of any such Notice, the other party shall by notice to the first party
appoint a second person as Appraiser on its behalf. The Appraisers thus appointed, each of whom must be a member of The Appraisal Institute/American Institute of Real Estate Appraisers (or any successor organization thereto) with at least ten
(10) years of experience appraising properties similar to the Demised Premises, shall, within forty-five (45) days after the date of the notice appointing the first appraiser, proceed to appraise the applicable Demised Premises to
determine the Fair Market Rent thereof as of the relevant date; provided, that if one Appraiser shall have been so appointed, or if two Appraisers shall have been so appointed but only one such Appraiser shall have made such determination
within fifty (50) days after the making of the initial appointment, then the determination of such Appraiser shall be final and binding upon the parties. If two (2) Appraisers shall have been appointed and shall have made their
determinations within the respective requisite periods set forth above and if the difference between the amounts so determined shall not exceed ten percent (10%) of the lesser of such amounts, then the Fair Market Rent shall be an amount equal
to fifty percent (50%) of the sum of the amounts so determined. If the difference between the amounts so determined shall exceed ten percent (10%) of the lesser of such amounts, then such two (2) Appraisers shall have twenty
(20) days to appoint a third (3rd) Appraiser, but if such Appraisers fail to do so, then either party may request the American Arbitration Association or any successor organization thereto to appoint an Appraiser within twenty
(20) days of such request, and both parties shall be bound by any appointment so made within such twenty (20)-day period. If no such Appraiser shall have been appointed within such twenty (20) days or within ninety (90) days of the
original request for a determination of Fair Market Rent, whichever is earlier, either Landlord or Tenant may apply to any court having jurisdiction to have such appointment made by such court. Any Appraiser appointed by the original Appraisers, by
the American Arbitration Association or by such court shall be instructed to determine the Fair Market Rent within thirty (30) days after appointment of such Appraiser. The determination of the appraiser which differs most in terms of dollar
amount from the determination of the other two Appraisers shall be excluded, and fifty percent (50%) of the sum of the remaining two determinations shall be final and binding upon Landlord and Tenant as the Fair Market Rent for such interest.
This provision for determination by appraisal shall be specifically enforceable to the extent such remedy is available under applicable law, and any determination hereunder shall be final and binding upon the parties except as otherwise provided by
applicable law. Landlord and Tenant shall each pay the fees and expenses of the Appraiser appointed by it and their own legal fees, and each shall pay one-half of the fees and expenses of the third Appraiser and one-half (1/2) of all other cost
and expenses incurred in connection with each appraisal. 

  
 120 

 ARTICLE XXVII 

OFFICERS’ CERTIFICATES—STATUS OF LEASE 

27.1 Certificate of Tenant. At any time during the Term, Tenant shall, within twenty (20) days after written request by
Landlord, execute, acknowledge and deliver to Landlord, or any other Person specified by Landlord, an Officer’s Certificate (which may be relied upon by such Person) (a) certifying (i) that, to the knowledge of Tenant, this Master
Lease is unmodified and in full force and effect (or if there are modifications, that this Master Lease, as modified, is in full force and effect and stating such modifications and providing a copy thereof if requested) and (ii) the date to
which Base Rent, Additional Charges and any other item payable by Tenant hereunder has been paid, and (b) stating (i) whether Tenant has given Landlord any outstanding notice of any event that, with the giving of notice or the passage of
time, or both, would constitute a default by Landlord in the performance of any covenant, agreement, obligation or condition contained in this Master Lease and (ii) whether, to the best knowledge of Tenant, Landlord is in default in performance
of any covenant, agreement, obligation or condition contained in this Lease, and, if so, specifying in reasonable detail each such default. 

27.2 Certificate of Landlord. At any time during the Term, Landlord shall, within twenty (20) days after request by Tenant,
execute, acknowledge and deliver to Tenant, or any other Person specified by Tenant, a written statement (which may be relied upon by such Person) (a) certifying (i) that this Lease is unmodified and in full force and effect (or if there
are modifications, that this Lease, as modified, is in full force and effect and stating such modifications and providing a copy thereof if requested) and (ii) the date to which Base Rent, Additional Charges and any other item payable by Tenant
hereunder has been paid, and (b) stating (i) whether an Event of Default has occurred or whether Landlord has given Tenant any outstanding notice of any event that, with the giving of notice or the passage of time, or both, would
constitute an Event of Default and (ii) whether, to the best knowledge of Landlord, Tenant is in default in the performance of any covenant, agreement, obligation or condition contained in this Lease, and, if so, specifying in reasonable detail
each such default or Event of Default. 
 ARTICLE XXVIII 

CONDITION OF DEMISED PREMISES ON 

EXPIRATION OR TERMINATION OF MASTER LEASE 

28.1 Delivery of Demised Premises. Upon the expiration or termination of this Master Lease from whatsoever cause with respect to
any or all of the Demised Premises or a portion thereof, including without limitation any termination under Section 1.6, 1.7 or 1.8, with respect to casualty or Condemnation, or as a result of any Event of Default, Tenant
shall surrender and deliver the affected Demised Premises to Landlord, together with all Alterations which are Landlord’s property under this Master Lease, (a) vacant and free from all occupants and tenancies, including without limitation
all Subleases, (b) broom-clean and in proper order and condition of repair as required by the other provisions of this Master Lease, reasonable wear and tear excepted, (c) in compliance with all Legal Requirements, Encumbrances and all
other requirements of this Master Lease, (d) with all Tenant’s Property removed and all Alterations removed which Tenant is entitled to remove and has elected to remove in its sole discretion (and the Demised Premises completely restored
with respect to all of the removed Alterations), (e) with all Known Environmental Problems remediated only as and to the extent expressly provided in 

  
 121 

 
Schedule 20.3 to the Side Letter, and otherwise subject to Section 20.3(b) including with respect to all SACs in respect of such Known Environmental Problems, with all
hydraulic lifts and pits, waste-handling equipment, oil-water separators and all other machinery, facilities and equipment for SAC operations removed, whether located at the SACs or elsewhere on or about the Demised Premises as and to the extent
required by Environmental Law, and (f) free and clear of all Encumbrances, other than (x) Permitted Encumbrances (except for (A) Excepted Liens and (B) Subleases, the Sears Hometown License Agreement, and the Lands’ End
Agreements), and (y) Permitted Encumbrances (excluding Excepted Liens, except in the case of a Master Lease termination with respect to the Recapture Space in which the Master Lease continues with respect to the Tenant Retained Space, in which
case Excepted Liens shall be permitted so long as Security for Excepted Liens is provided to Landlord) and Landlord Encumbrances (provided, however, that Tenant shall remain liable for the payment and discharge of all Excepted Liens).
Notwithstanding the foregoing, in the event of a Master Lease termination as a result of casualty or Condemnation, the foregoing provisions with respect to Alterations, and subparagraph (b), shall not apply to the extent affected by such casualty or
Condemnation. 
 ARTICLE XXIX 

ALTERNATIVE DISPUTE RESOLUTION—EXPEDITED ARBITRATION 

29.1 Attempted Dispute Resolution. (a) All disputes, claims or controversies arising under this Master Lease between the
Parties with respect to or arising under (i) Sections 1.7 and 1.8, (ii) with respect to or arising from the determination of Gross Leasable Square Footage or Tenant’s Proportionate Share, or (iii) with respect to the
calculation and determination of Base Rent, the “SHC Base Rent Adjustment” and other items and adjustments as provided in Schedule 2 to the Side Letter (each, a “Dispute”) shall be addressed and
resolved in accordance with the procedures set forth below, and no other claim shall be brought in any court or under other dispute resolution process, and no other remedy shall be sought to be exercised by any Party with respect to the subject
matter of any such Dispute (except that the decision of the Conciliator or Arbitrator may be enforced in any court of competent jurisdiction). Without limiting the foregoing, pending the resolution of such Dispute as provided herein, neither Party
shall be deemed in breach or default nor shall there be any Event of Default under this Master Lease; provided, however, in the event of a Dispute with respect to subdivisions (ii) or (iii), Tenant shall continue to pay all Base Rent and
Property Charges in accordance with the amounts last proposed or claimed by Landlord immediately prior to such Dispute, subject to prompt adjustment and refund or credit to Tenant of any amounts owing to Tenant upon such resolution. For the
avoidance of doubt, from and after the Actual Recapture Date, a Dispute shall not include (and arbitration shall not apply to) any Event of Default or the exercise of any remedies by Landlord for an Event of Default, including the termination of
this Master Lease, with respect to any Recapture Space or any Tenant Retained Space. 
 (b) Landlord and Tenant shall use all reasonable
good faith efforts to settle and resolve all Disputes in an expeditious manner. Landlord and Tenant have each designated a senior executive officer (“Senior Representative”) to act as its representative to attempt to resolve
all Disputes; each Party may designate a replacement Senior Representative for such Party from time to time by Notice to the other Party. As of the Commencement Date, Landlord’s initial Senior Representative shall be Benjamin Schall, and
Tenant’s initial Senior Representative shall be Jeffrey Stollenwerck. On or before the Commencement Date, or at any time thereafter, 

  
 122 

 
by separate agreement, the Parties shall attempt in good faith to select a disinterested Person (“Conciliator”) to assist in the resolution of all such Disputes, which
Conciliator may similarly be replaced only by mutual agreement of the Parties from time to time. 
 (c) If the Parties fail to resolve any
Dispute through informal discussions, either Landlord or Tenant may give Notice to the other Party (and the Conciliator, if any) of the existence of a Dispute (“Dispute Notice”), which shall specify with reasonable detail the
matter or matters in dispute and the relief sought (and, if monetary, the amount thereof), and shall propose a place, date and time for the Parties’ respective Senior Representatives to meet with each other (and the Conciliator, if any) to seek
to resolve the Dispute (which date shall be no later than three (3) days from the date of delivery of the Dispute Notice). Landlord and Tenant, together with any such Conciliator (if any) shall use reasonable best efforts to negotiate a
resolution to the Dispute during a period of ten (10) days (“10-Day Period”) beginning upon the date that any Party delivers a Dispute Notice. These reasonable best efforts shall include taking the following sequential
steps, all of which shall be completed within such 10-Day Period: 
 (i) The Senior Representative of the Party receiving
the Dispute Notice shall use his or her reasonable best efforts to meet with the noticing Party’s Senior Representative and any Conciliator at the place, on the date and at the time proposed in the Dispute Notice. 

(ii) The Senior Representatives and any Conciliator, acting in good faith, shall use their respective reasonable best efforts
to negotiate a mutually acceptable resolution of the asserted Dispute. 
 (iii) If, acting in good faith, the Senior
Representatives (with the assistance of any Conciliator) are unable to achieve a mutually acceptable resolution of the asserted Dispute within said 10-Day Period, the Parties agree that the Conciliator (if any) shall make the final decision at the
expiration of such 10-Day Period, which decision shall be in writing and shall be final and binding on the Parties. If the Dispute is not resolved as provided in this Section 29.1, then the Parties shall submit the Dispute to binding
arbitration as provided herein. 
 29.2 Binding Arbitration. If, upon the expiration of the 10-Day Period following the date
of delivery of the Dispute Notice, the Senior Representatives are unable to negotiate a resolution of the Dispute, and there is no Conciliator (or the Conciliator fails to issue a decision), then the Parties shall submit the Dispute to binding
arbitration in accordance with the following arbitration procedures: 
 (a) The arbitration will be conducted pursuant to the Expedited
Procedures of the Commercial Arbitration Rules (“Arbitration Rules”) of the American Arbitration Association (“AAA”) in New York, New York, and the arbitrator shall render his or her award not later
than fourteen (14) days after the close of the hearing in the arbitration. 
 (b) The arbitrator will be selected from an AAA list
using the AAA-recommended selection method. 

  
 123 

 (c) After the appointment of the arbitrator, the arbitrator shall hold a conference with the
Parties as soon as practicable (but in any event within five (5) days of such appointment) to define and narrow the issues and claims to be arbitrated, to define and limit discovery and to identify the form of evidence to be presented. All
discovery shall be completed within five (5) Business Days of said conference. 
 (d) Any arbitration shall be conducted by the
arbitrator under the guidance of the Federal Rules of Civil Procedure and the Federal Rules of Evidence, as modified by the Expedited Procedures, but the arbitrator shall not be required to comply strictly with such rules in conducting any such
arbitration. 
 (e) The arbitrator shall conduct such evidentiary or other hearings not to exceed two (2) days, as the arbitrator shall
deem necessary or appropriate, and thereafter shall make a determination as soon as practicable and within said fourteen (14)-day period. 

(f) A full and complete record of the arbitration shall be maintained, and the award of the arbitrator shall be accompanied by detailed
written findings of fact and conclusions of law of the arbitrator. 
 (g) Each Party will bear equally the costs and expenses of AAA and the
arbitrator, and each Party will bear its own costs and expenses. 
 (h) In no event will the arbitrator determine that any Party should be
awarded punitive, exemplary, consequential or speculative damages or any other damages not measured by the prevailing Party’s actual damages. 

(i) All arbitration proceedings shall be confidential, except to the extent that disclosure is required by applicable law. 

(j) The arbitrator may make and grant interim and interlocutory awards and relief, including injunctive relief, which shall not be subject to
appeal. 
 (k) The final award by the arbitrator shall be final and binding on the Parties and shall not be subject to appeal, and judgment
on the award may be entered in any court of competent jurisdiction. 
 (l) In the case of any conflict between a term or condition of this
Master Lease and a term or condition of the Arbitration Rules, the terms and conditions of this Master Lease shall govern and control in all respects to the fullest extent permissible or feasible. 

 

	
	[SIGNATURES FOLLOW]

  
 124 

 
			
	 IN WITNESS WHEREOF, this Master Lease has been executed and delivered by the Members effective as of the Effective Date.

	
	 Landlord:
  

SERITAGE KMT FINANCE LLC

		
	By:		 /s/ Benjamin Schall

	Name:		Benjamin Schall
	Title:		President
	
	SERITAGE SRC FINANCE LLC
		
	By:		 /s/ Benjamin Schall

	Name:		Benjamin Schall
	Title:		President
	
	Tenant:
	
	KMART OPERATIONS LLC
		
	By:		 /s/ Lawrence J. Meerschaert

	Name:		Lawrence J. Meerschaert
	Title:		Vice President, Tax, Assistant Treasurer and Secretary
	
	SEARS OPERATIONS LLC
		
	By:		 /s/ Lawrence J. Meerschaert

	Name:		Lawrence J. Meerschaert
	Title:		Vice President, Tax, Assistant Treasurer and Secretary

 [Exhibits] 
 [Schedules]

  
 125 

 EXHIBIT A 

PROPERTIES 
  

							
	 	  	 Store Number
	  	 City
	  	 State

	1	  	1089	  	Anchorage	  	AK
	2	  	9571	  	Cullman	  	AL
	3	  	1206	  	North Little Rock	  	AR
	4	  	9711	  	Russellville	  	AR
	5	  	2358	  	Flagstaff	  	AZ
	6	  	1078	  	Mesa	  	AZ
	7	  	1708	  	Phoenix	  	AZ
	8	  	2218	  	Prescott	  	AZ
	9	  	2047	  	Sierra Vista	  	AZ
	10	  	3695	  	Sierra Vista	  	AZ
	11	  	1338	  	Tucson	  	AZ
	12	  	2078	  	Yuma	  	AZ
	13	  	4762	  	Antioch	  	CA
	14	  	7653	  	Big Bear Lake	  	CA
	15	  	1568	  	Carson	  	CA
	16	  	1358	  	Chula Vista	  	CA
	17	  	1538	  	Citrus Heights	  	CA
	18	  	3945	  	Delano	  	CA
	19	  	1438	  	El Cajon	  	CA
	20	  	1988	  	El Centro	  	CA
	21	  	1159	  	Fairfield	  	CA
	22	  	1408	  	Florin	  	CA
	23	  	1208	  	Fresno	  	CA
	24	  	7390	  	McKinleyville	  	CA
	25	  	2298	  	Merced	  	CA
	26	  	1748	  	Montclair	  	CA
	27	  	1868	  	Moreno Valley	  	CA
	28	  	1698	  	Newark	  	CA
	29	  	1168	  	North Hollywood	  	CA
	30	  	1508	  	Northridge	  	CA
	31	  	1968	  	Palm Desert	  	CA
	32	  	3678	  	Ramona	  	CA
	33	  	1298	  	Riverside	  	CA
	34	  	4432	  	Riverside	  	CA
	35	  	1156	  	Roseville	  	CA

  
 Exhibit A Properties
– 1 

							
	 	  	 Store Number
	  	 City
	  	 State

	36	  	1688	  	Salinas	  	CA
	37	  	1398	  	San Bernardino	  	CA
	38	  	1478	  	San Bruno	  	CA
	39	  	1648	  	San Diego	  	CA
	40	  	1488	  	San Jose	  	CA
	41	  	2308	  	Santa Cruz	  	CA
	42	  	2088	  	Santa Maria	  	CA
	43	  	1178	  	Santa Monica	  	CA
	44	  	7639	  	Santa Paula	  	CA
	45	  	1108	  	Temecula	  	CA
	46	  	2318	  	Thousand Oaks	  	CA
	47	  	1148	  	Ventura	  	CA
	48	  	2068	  	Visalia	  	CA
	49	  	1189	  	West Covina	  	CA
	50	  	1608	  	Westminster	  	CA
	51	  	1071	  	Lakewood	  	CO
	52	  	4917	  	Thornton	  	CO
	53	  	1193	  	Waterford	  	CT
	54	  	1063	  	West Hartford	  	CT
	55	  	7725	  	Rehoboth Beach	  	DE
	56	  	1355	  	Altamonte Springs	  	FL
	57	  	1645	  	Boca Raton	  	FL
	58	  	2565	  	Bradenton	  	FL
	59	  	7321	  	Bradenton	  	FL
	60	  	1415	  	Clearwater	  	FL
	61	  	1715	  	Doral	  	FL
	62	  	1495	  	Ft. Myers	  	FL
	63	  	1665	  	Gainesville	  	FL
	64	  	1345	  	Hialeah	  	FL
	65	  	4292	  	Hialeah	  	FL
	66	  	7233	  	Kissimmee	  	FL
	67	  	1955	  	Lakeland	  	FL
	68	  	2245	  	Melbourne	  	FL
	69	  	1365	  	Miami	  	FL
	70	  	1655	  	Miami	  	FL
	71	  	2695	  	Naples	  	FL
	72	  	4295	  	North Miami	  	FL
	73	  	1006	  	Ocala	  	FL
	74	  	1225	  	Orlando	  	FL

  
 Exhibit A Properties
– 2 

							
	 	  	 Store Number
	  	 City
	  	 State

	75	  	2805	  	Panama City	  	FL
	76	  	1096	  	Pensacola	  	FL
	77	  	1535	  	Plantation	  	FL
	78	  	1625	  	Sarasota	  	FL
	79	  	1295	  	St. Petersburg	  	FL
	80	  	4355	  	St. Petersburg	  	FL
	81	  	1385	  	Atlanta	  	GA
	82	  	1305	  	Savannah	  	GA
	83	  	7480	  	Honolulu	  	HI
	84	  	9220	  	Algona	  	IA
	85	  	2212	  	Cedar Rapids	  	IA
	86	  	7767	  	Charles City	  	IA
	87	  	9309	  	Webster City	  	IA
	88	  	1229	  	Boise	  	ID
	89	  	1090	  	Chicago	  	IL
	90	  	1380	  	Chicago	  	IL
	91	  	3594	  	Chicago	  	IL
	92	  	1740	  	Joliet	  	IL
	93	  	4297	  	Moline	  	IL
	94	  	1212	  	North Riverside	  	IL
	95	  	1750	  	Orland Park	  	IL
	96	  	3241	  	Springfield	  	IL
	97	  	7289	  	Steger	  	IL
	98	  	3556	  	Elkhart	  	IN
	99	  	1830	  	Ft. Wayne	  	IN
	100	  	3180	  	Merrillville	  	IN
	101	  	9647	  	Leavenworth*	  	KS
	102	  	1101	  	Overland Pk	  	KS
	103	  	7607	  	Hopkinsville	  	KY
	104	  	7430	  	Owensboro	  	KY
	105	  	2176	  	Paducah	  	KY
	106	  	3320	  	Houma	  	LA
	107	  	1347	  	Lafayette	  	LA
	108	  	7061	  	New Iberia	  	LA
	109	  	3879	  	Braintree	  	MA
	110	  	1053	  	Saugus	  	MA
	111	  	2034	  	Bowie	  	MD
	112	  	1864	  	Cockeysville	  	MD
	113	  	7713	  	Edgewater	  	MD

  
 Exhibit A Properties
– 3 

							
	 	  	 Store Number
	  	 City
	  	 State

	114	  	2945	  	Hagerstown	  	MD
	115	  	9521	  	Madawaska	  	ME
	116	  	7733	  	Alpena	  	MI
	117	  	2050	  	Jackson	  	MI
	118	  	1250	  	Lincoln Park	  	MI
	119	  	4845	  	Manistee	  	MI
	120	  	1450	  	Roseville	  	MI
	121	  	9586	  	Sault Ste. Marie	  	MI
	122	  	4177	  	St. Clair Shores	  	MI
	123	  	1490	  	Troy	  	MI
	124	  	1132	  	Burnsville	  	MN
	125	  	3775	  	Detroit Lakes	  	MN
	126	  	1122	  	Maplewood	  	MN
	127	  	1052	  	St. Paul	  	MN
	128	  	7021	  	Cape Girardeau	  	MO
	129	  	4304	  	Florissant	  	MO
	130	  	7018	  	Jefferson City	  	MO
	131	  	7719	  	Columbus	  	MS
	132	  	4814	  	Havre	  	MT
	133	  	1185	  	Asheville	  	NC
	134	  	4758	  	Concord	  	NC
	135	  	4353	  	Minot	  	ND
	136	  	3814	  	Kearney	  	NE
	137	  	2443	  	Manchester	  	NH
	138	  	1313	  	Nashua	  	NH
	139	  	2663	  	Portsmouth	  	NH
	140	  	1003	  	Salem	  	NH
	141	  	1574	  	Middletown	  	NJ
	142	  	1294	  	Watchung	  	NJ
	143	  	1434	  	Wayne	  	NJ
	144	  	7755	  	Deming	  	NM
	145	  	7035	  	Farmington	  	NM
	146	  	7016	  	Hobbs	  	NM
	147	  	9819	  	Henderson	  	NV
	148	  	1668	  	Las Vegas	  	NV
	149	  	1978	  	Reno	  	NV
	150	  	1103	  	Albany	  	NY
	151	  	1623	  	Clay	  	NY
	152	  	1794	  	East Northport	  	NY

  
 Exhibit A Properties
– 4 

							
	 	  	 Store Number
	  	 City
	  	 State

	153	  	1264	  	Hicksville	  	NY
	154	  	1784	  	Johnson City	  	NY
	155	  	7695	  	Olean	  	NY
	156	  	1524	  	Rochester	  	NY
	157	  	7676	  	Sidney	  	NY
	158	  	1584	  	Victor	  	NY
	159	  	1944	  	Yorktown Heights	  	NY
	160	  	1410	  	Canton	  	OH
	161	  	1520	  	Chapel Hill	  	OH
	162	  	1560	  	Dayton	  	OH
	163	  	7736	  	Kenton	  	OH
	164	  	7477	  	Marietta	  	OH
	165	  	1350	  	Mentor	  	OH
	166	  	1430	  	Middleburg Heights	  	OH
	167	  	3243	  	North Canton	  	OH
	168	  	3142	  	Tallmadge	  	OH
	169	  	1220	  	Toledo	  	OH
	170	  	7003	  	Muskogee	  	OK
	171	  	1091	  	Oklahoma City	  	OK
	172	  	1119	  	Happy Valley	  	OR
	173	  	3888	  	The Dalles	  	OR
	174	  	7746	  	Carlisle	  	PA
	175	  	3911	  	Columbia	  	PA
	176	  	7699	  	Lebanon	  	PA
	177	  	9770	  	Mount Pleasant	  	PA
	178	  	3954	  	Walnutport	  	PA
	179	  	4313	  	York	  	PA
	180	  	7788	  	Bayamon	  	PR
	181	  	1085	  	Caguas	  	PR
	182	  	1925	  	Carolina	  	PR
	183	  	7768	  	Guaynabo	  	PR
	184	  	3882	  	Mayaguez	  	PR
	185	  	7741	  	Ponce	  	PR
	186	  	1083	  	Warwick	  	RI
	187	  	7754	  	Anderson	  	SC
	188	  	1325	  	Charleston	  	SC
	189	  	7043	  	Rock Hill	  	SC
	190	  	7318	  	Sioux Falls	  	SD
	191	  	1146	  	Cordova	  	TN

  
 Exhibit A Properties
– 5 

							
	 	  	 Store Number
	  	 City
	  	 State

	192	  	1186	  	Memphis	  	TN
	193	  	1847	  	Austin	  	TX
	194	  	1227	  	Dallas	  	TX
	195	  	4205	  	El Paso	  	TX
	196	  	1257	  	Friendswood	  	TX
	197	  	7077	  	Harlingen	  	TX
	198	  	1067	  	Houston	  	TX
	199	  	1277	  	Ingram	  	TX
	200	  	2147	  	Irving	  	TX
	201	  	1167	  	San Antonio	  	TX
	202	  	1127	  	Shepherd	  	TX
	203	  	1057	  	Valley View	  	TX
	204	  	1197	  	Westwood	  	TX
	205	  	7426	  	Layton	  	UT
	206	  	1888	  	West Jordan	  	UT
	207	  	1284	  	Alexandria	  	VA
	208	  	1615	  	Chesapeake	  	VA
	209	  	1814	  	Fairfax	  	VA
	210	  	1575	  	Hampton	  	VA
	211	  	1265	  	Virginia Beach	  	VA
	212	  	2514	  	Warrenton	  	VA
	213	  	1069	  	Redmond	  	WA
	214	  	2239	  	Vancouver	  	WA
	215	  	4439	  	Yakima	  	WA
	216	  	1082	  	Greendale	  	WI
	217	  	2382	  	Madison	  	WI
	218	  	3970	  	Platteville	  	WI
	219	  	4188	  	Charleston	  	WV
	220	  	3877	  	Elkins	  	WV
	221	  	3724	  	Scott Depot	  	WV
	222	  	4736	  	Casper	  	WY
	223	  	4863	  	Gillette	  	WY
	224	  	4837	  	Riverton	  	WY

  
 Exhibit A Properties
– 6 

 EXHIBIT B 

PROHIBITED USES 
  

					
					 [NOTE:       All Prohibited Uses marked “*” shall apply to both Landlord and
Tenant; all others apply to Tenant only.]

			
	*    		•  		A flea market;
			
	*		•		A pawn shop;
			
			•		A banquet hall, auditorium or other place of public assembly;
			
			•		A library or reading room (except incidental to the sale at retail of books);
			
			•		A discotheque or dance hall, any establishment offering live entertainment of any kind (excluding live music in restaurants), and a theatre, cinema or playhouse, provided that readings, demonstrations, television, video and other
displays, and/or interactive presentations, shall be permitted as incidental to any other lawful use;
			
	*		•		A mortuary, funeral home or crematorium;
			
			•		Living quarters, sleeping apartment or lodging rooms;
			
	*		•		Any use which is a public or private nuisance;
			
	*		•		Any use which produces: (A) noise or sound that is objectionable due to intermittence, high frequency, shrillness or loudness (except as otherwise permitted), (B) noxious odors, (C) noxious, toxic, caustic or corrosive fumes, fuel
or gas, (D) dust, dirt or fly ash in excessive quantities, or (E) fire, explosion or other damaging or dangerous hazard, excluding in all cases the normal operations of SACs;
			
	*		•		Any assembling, manufacturing, industrial, distilling, refining, smelting, agriculture or mining operation;
			
	*		•		Junk yard or dump;
			
	*		•		A massage parlor, or the sale, rental or display of “adult” or pornographic materials, including, without limitation, magazines, books, movies, videos, and photographs, or any pornographic display of any nature, excepting
massages offered by a spa;
			
			•		A casino, gaming hall, off-track betting facility, or other gambling operation or facility, excepting the sale of lottery tickets and gambling where allowed under applicable Legal Requirements;
			
	*		•		A “head shop” or other business selling drug paraphernalia, and
			
			•		A retail use that is primarily (a) an off-price or discount store (other than a store operated under the “Sears”, “Kmart” or “Shop Your Way” brand or name or any abbreviation or derivative of such
brand or name (such as, by way of example only and not by way of limitation, “K” or “Big K”), or any other brand or name including therein the name “Sears”, “Kmart” or “Shop Your Way” or any
abbreviation or derivative for such brand or name as aforesaid ), or *(b) a second-hand store.

 EXHIBIT C 

FORM OF SNDA 
  

					
	Prepared by and after recording return to:        		 )
 )

)
		
			
			 )
  

)
  

)
  

)
  

)
		

 SUBORDINATION, NON-DISTURBANCE, and Attornment AGREEMENT 

THIS SUBORDINATION, NON-DISTURBANCE AND ATTORNMENT AGREEMENT (this
“Agreement”) is made as of the [    ] day of [            ], 2015 by and between
(i) [                    ], a
[                    ], having an address at
[                    ] (together with its successors and assigns, “Lender”), (ii) KMART OPERATIONS LLC, a [limited
liability company], having an address at
[                                        ]
(“Kmart Tenant”), SEARS OPERATIONS LLC, a [limited liability company], having an address at
[                                        ]
(“Sears Tenant”, and together with Kmart Tenant, individually or collectively as the context shall indicate, “Tenant”), and (iii) SERITAGE SRC FINANCE LLC, a Delaware limited liability company
(“Sears Landlord”) and SERITAGE KMT FINANCE LLC, a Delaware limited liability company (“Kmart Landlord”, and together with Sears Landlord, individually or collectively as the context shall indicate,
“Landlord”). 
 RECITALS 

Landlord is the fee owner of those certain properties identified on Exhibit A attached hereto, (collectively, the “Landlord
Parcels” and each a “Landlord Parcel”). 
 By that certain Master Lease dated
[            ] (collectively, the “Lease”), by and between Landlord and Tenant, Tenant has leased from Landlord all or a portion of each Landlord Parcel and the
improvements thereon (the “Premises”), together with certain easements and rights over the Landlord Parcel as described in the Lease. 

  
 Exhibit C Form of SNDA
– 1 

 Lender is the holder of a mortgage or beneficiary under a deed of trust on each Landlord
Parcel, given to the Lender by Landlord dated as of the date hereof (individually or collectively as the context shall indicate, the “Mortgage”, and the “Mortgages”). Lender and Landlord are also parties to that
certain Loan Agreement, dated as of the date hereof (the “Loan Agreement” and, collectively with the Mortgage and the other Loan Documents as defined in the Loan Agreement, the “Loan Documents”). Capitalized terms
used but not defined herein shall have the meanings ascribed to such terms in the Loan Agreement. 
 The loan terms require Landlord
to cause Tenant to subordinate the Lease and its interest in the Premises to the lien of the Mortgage and that Tenant attorn to Lender. 

In return for Tenant’s agreement to subordinate and attorn on the terms and conditions set forth herein, Tenant requires recognition of
and consent to the Lease terms by Lender, subject to the terms of this Agreement, and to be assured of continued occupancy of the Demised Premises under the terms of the Lease, in the event either Lender or a Successor to Lender (as defined herein)
succeeds to the rights of Landlord under the Lease pursuant to the terms of the Mortgage. 
 NOW, THEREFORE, in consideration of the
mutual covenants hereinafter set forth and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows: 

 

	1.	The Recitals paragraphs set forth above are hereby incorporated into this Agreement. All capitalized terms not otherwise defined herein shall have the meaning ascribed thereto in the Lease. 

 

	2.	Lender hereby consents to the Lease. 

  

	3.	Subject to the terms of this Agreement, the Lease is and shall be subject and subordinate to the lien of the Mortgage and to all renewals, replacements and extensions of the Mortgage (pursuant to Section 14.1 of
the Lease) to the full extent of the principal sum secured thereby, interest thereon and any applicable fees and expenses and to the terms, conditions and covenants set forth in the Mortgage and the other Loan Documents. 

 

	4.	In the event that Lender shall commence an action to foreclose the Mortgage or to obtain a receiver of the Demised Premises, or shall foreclose the Mortgage by advertisement, entry and sale according to any procedure
available under the laws of the state where the Landlord Parcel is located, Tenant shall not be joined as a party defendant in any such action or proceeding, unless such joinder is required by law, and in any event Tenant shall not be disturbed in
its possession of the Demised Premises under the Lease, including its rights under Section 21.25 of the Lease, provided that at the time of the commencement of any such action or proceeding or at the time of any such sale or exercise of any
such other rights (a) the term of the Lease shall have commenced pursuant to the provisions thereof, (b) Tenant shall be in possession of the premises then currently demised under the Lease (subject to, and as the Demised Premises may be
modified from time to time pursuant to, the terms and conditions of the Lease), (c) the Lease shall be in full force and effect and (d) no Event of Default has occurred and is continuing. 

  
 Exhibit C Form of SNDA
– 2 

	5.	In the event that Lender or any bona-fide purchaser (at a foreclosure sale or other proceedings brought to enforce the Mortgage), subsequent owner (receiving title by deed or assignment in lieu of foreclosure),
successor or assign (including, without limitation, a successor or assign from Lender in its capacity as the holder of the indebtedness secured by the Mortgage, such purchaser, subsequent owner, successor or assign referred to as
“Successor”) shall acquire the Demised Premises upon foreclosure, or by deed in lieu of foreclosure, or by any other means: 

  

	 	(a)	Lender or its Successor shall recognize and accept the rights of Tenant and shall thereafter assume the obligations of Landlord under the Lease, subject to Section 4 above and subsection 5(d)
below; 

  

	 	(b)	Tenant shall be deemed to have made a full and complete attornment to Lender or its Successor as the landlord under the Lease so as to establish direct privity between the Lender or its Successor and Tenant;

  

	 	(c)	All rights and obligations of Tenant under the Lease shall continue in full force and effect and be enforceable by and against Tenant, respectively, with the same force and effect as if the Lease had originally been
made and entered into directly by and between Lender or its Successor (as the case may be) as the landlord thereunder, and Tenant and, in the event the Lease shall automatically terminate pursuant to applicable law, Lender or its Successor (as the
case may be) and Tenant shall, upon the request of Tenant, immediately enter into a new lease on the exact same terms and conditions of the Lease; and 

  

	 	(d)	Notwithstanding anything to the contrary contained herein, in the Loan Documents or in the Lease, the following is specifically understood and agreed: 

(1) Neither Lender nor its Successor shall be obligated to complete any construction work required to be done by Landlord
pursuant to the provisions of the Lease or to reimburse Tenant for any construction work done by Tenant. except that with respect to Recapture Separation Work and Additional Recapture Space separation work as provided in Section 1.7 and 1.8 of
the Lease that remains unfinished as of the date upon which the Lender or its Successor shall become the owner of the applicable Landlord Parcel (“Successor Landlord”), Successor Landlord shall elect to either (A) complete such
work (regardless of the adequacy of any reserves available therefor) or (B) notify Tenant that Successor Landlord elects not to complete such work. If Successor Lender elects not to complete such work, the Lease shall automatically be
reinstated as to such Recapture Space or Additional Recapture Space (in its then current condition) such that the Demised Premises and related Lease terms for such Property shall be the same as though the Recapture Notice or Additional Recapture
Space Termination Notice had never been given, it being understood and agreed that (x) from and after Successor Landlord’s election not to complete such work Tenant’s payment obligations under the Lease shall apply to the Demised
Premises including the applicable Recapture Space or Additional Recapture Space but (y) Tenant shall not be deemed to be in default or breach of the Operating Covenant 

  
 Exhibit C Form of SNDA
– 3 

 
for such reasonable period of time as shall be reasonably necessary for Tenant (at its sole cost and expense) to return the Demised Premises to substantially the condition as existed immediately
before the applicable Recapture Notice or Additional Recapture Space Termination Notice was given. 
 (2) Subject to
subsection 5(a) hereof, neither Lender nor its Successor shall be liable (a) for Landlord’s failure to perform any of its obligations under the Lease which have accrued prior to the date on which the Lender or its Successor shall
become the owner of the applicable Landlord Parcel, or (b) for any act or omission of Landlord, whether prior to or after such foreclosure or sale, provided, that the foregoing shall not limit the obligations of Lender or its Successor
(and they shall remain obligated) for (A) any alteration (but specifically excluding any work under clauses (1) or (4) of this Section 5(d) except as expressly provided therein), maintenance, or repair covenants of
Landlord or any obligations to cure violations of any Legal Requirements by Landlord of a continuing nature (“Continuing Acts”), and (B) any obligations of Landlord under the Lease which accrue from and after the date such
Lender or its Successor shall succeed to Landlord’s interest. 
 (3) Neither Lender nor its Successor shall be required
to make any repairs to any Landlord Parcel or to the Demised Premises required as a result of fire or other casualty or by reason of condemnation, except Lender or its Successor shall remain obligated to make all such repairs if Landlord is required
to do so under the Lease to the extent that Lender or its Successor shall have received casualty insurance proceeds or condemnation awards with respect to such events. 

(4) Neither Lender nor its Successor shall be required to make any capital improvements to any Landlord Parcel or to the
Demised Premises under the Lease which Landlord may have agreed to make, but had not completed, or to perform or provide any services not related to possession or quiet enjoyment of the premises demised under the Lease, except they shall remain
obligated for (I) all of the same as expressly set forth in Section 5(d)(1) with respect to Recapture Separation Work and Additional Recapture Space separation work, if Lender shall have elected to complete such work as set forth in
Section 5(d)(1) above and (II) all Continuing Acts 
 (5) Neither Lender nor its Successor shall be subject to
any offsets, defenses, abatements or counterclaims which shall have accrued to Tenant against Landlord prior to the date upon which the Lender or its Successor shall become the owner of the applicable Landlord Parcel, except Tenant shall retain
against them all Tenant defenses, claims and counterclaims (if any) with respect to any Continuing Acts. 
 (6) Neither
Lender nor its Successor shall be liable for the return of rental security deposits, if any, paid by Tenant to Landlord in accordance with the Lease unless such sums are actually received by Lender or its Successor. 

  
 Exhibit C Form of SNDA
– 4 

 (7) Neither Lender nor its Successor shall be bound by any payment of rents,
additional rents or other sums which Tenant may have paid more than one (1) month in advance to any prior Landlord unless (i) such sums are actually received by the Lender or its Successor, or (ii) such prepayment shall have been
expressly provided in the Lease; provided that this clause (7) shall not limit Tenant’s right to any credit or refund under the Lease under the installment expense true-up provisions set forth in Section 4.5 of the Lease,
except to the extent Landlord has misappropriated any payments therefor. 
 (8) Neither Lender nor its Successor shall be
bound to make any payment to Tenant which was required under the Lease, or otherwise, to be made prior to the time the Lender or its Successor succeeded to Landlord’s interest, except that Landlord or its Successor shall remain liable for all
payments with respect to all Continuing Acts. In the event any 100% Recapture Property Termination Notice has been given, if any amounts placed into escrow pursuant to Section 1.9 of the Lease with respect to such 100% Recapture Property
Termination Notice are not released to Tenant on the termination date contemplated by the Lease, Tenant shall have the right within five (5) Business Days of such scheduled termination date to reinstate the Lease. If Tenant makes such election
to reinstate the Lease, Tenant shall not be deemed to be in default or breach of the Operating Covenant for such reasonable period of time as shall be reasonably necessary in order to resume business operations in the event Tenant retains the 100%
Recapture Property. 
 (9) Neither Lender nor its Successor shall be bound by any agreement amending, modifying or
terminating the Lease (except for any termination, and any amendment, made pursuant to and as expressly provided in the Lease) made without the Lender’s prior written consent prior to the time the Lender or its Successor succeeded to
Landlord’s interest. 
 (10) Neither Lender nor its Successor shall be bound by any assignment of the Lease or sublease
of the Landlord Parcel, or any portion thereof, made prior to the time the Successor succeeded to Landlord’s interest, other than if pursuant to the provisions of the Lease. 

 

	6.	 Nothing herein contained shall impose any obligations upon either Lender or its Successor to perform any of the obligations of Landlord under the
Lease, unless and until Lender or its Successor shall succeed to the interests of Landlord in accordance with Section 5 above. Provided that the conditions set forth in Section 4 above are satisfied, in the event that Lender, at its
election in its sole discretion, shall seek a receiver for any Landlord Parcel, Lender shall (a) use commercially reasonable efforts to request that the order appointing the receiver require the receiver for such Landlord Parcel to operate such
Landlord Parcel subject to the terms of the Lease, (b) to the extent required by applicable law, deliver any such required notice or order with respect to such appointment and order, and (c) unless deemed necessary in Lender’s prudent
judgment, not object to Tenant appearing at its sole cost and expense in any proceeding for such appointment and order for the sole purpose of supporting a request made under 

  
 Exhibit C Form of SNDA
– 5 

	 	
subsection 6(a), or making a similar request, so long as such appearance shall not hinder or delay the appointment of the receiver and Tenant has advised Lender of its intent to appear.

  

	7.	Any notice required or desired to be given under this Agreement shall be in writing and (a) given by certified or registered mail, return receipt requested, postage prepaid or (b) sent by reputable overnight
air courier service (i.e., Federal Express, Airborne, etc.) with guaranteed overnight delivery; in each instance addressed to the party as provided below. Notices shall be deemed given when actually received by the recipient, receipt thereof is
refused by the recipient or the impossibility of delivery due to the failure to provide a new address as required herein. All notices hereunder shall be addressed as follows: 

 

							
			If to Lender:		[                    ]		
				
			If to Tenant:		[                    ]		
				
			With a copy to:		[                    ]		
				
			If to Landlord:		[                    ]		
				
			With a copy to:		[                    ]		

 Either party, at any time and from time to time (by providing notice to the other party in the manner set forth
above), may designate a different address or person, or both, to whom such notice may be sent. Notice of change in address or person shall be effective 10 days after written notice of such change has been sent to Tenant in accordance with the terms
of this Paragraph. 
  

	8.	Tenant will give Lender a copy of any notice of default sent by Tenant to Landlord (“Default Notice”); provided that, Tenant’s failure, for any reason or no reason, to give Lender a Default Notice
will not comprise either a default or breach of Tenant’s obligations under the Lease and will not, except as set forth herein, preclude or affect in any way Tenant’s right to exercise any remedy provided to Tenant for Landlord’s
default in the Lease. If Lender receives a Default Notice from Tenant, Lender shall have the same period of time provided Landlord under the Lease within which to cure such default. The Lender’s cure period shall begin to run upon receipt of
the Default Notice. Notwithstanding anything to the contrary contained in this Section 8, Tenant agrees not to terminate the Lease by reason of default by Landlord under the Lease, or to an abatement of rent under the Lease, without delivering
to Lender or its Successor written notice of such default and the opportunity to cure within 60 days of the delivery of such notice to Lender or its Successor, or if such default cannot be cured within sixty (60) days, shall have failed within
sixty (60) days after receipt of such notice to commence and thereafter diligently pursue any action necessary to cure such default, provided that Lender has kept Tenant up-to-date with the current contact information for Lender or its
Successor as to where to send such notice. 

  
 Exhibit C Form of SNDA
– 6 

	9.	This Agreement shall be binding upon and inure to the benefit of Lender, its Successor, Landlord and Tenant and their respective legal representatives, successors, administrators and assigns. The term “Lender”
as used herein shall include the successors and assigns of Lender and any person, party or entity which shall become the owner of a Landlord Parcel by reason of a foreclosure of the Mortgage or the acceptance of a deed or assignment in lieu of
foreclosure or otherwise. 

  

	10.	Landlord shall give written notice to Tenant of the reconveyance or other release of the Mortgage within thirty (30) days of the date the reconveyance or other release is recorded. 

 

	11.	This Agreement and the lien of the Mortgage shall not apply to any personalty, real property, fixtures or equipment owned or leased by Tenant which is now or hereafter placed on or installed in the Premises, and Tenant
shall have the full right to remove said personalty, real property, fixtures and equipment at the expiration of the Lease term. 

  

	12.	Lender may sell, transfer and deliver the Note and assign the Mortgage, this Agreement and the other documents executed in connection therewith to one or more investors in the secondary mortgage market
(“Investors”), provided, any assignment of this Agreement in connection with such sale or transfer shall be subject to all terms and provisions of this Agreement. In connection with such sale, Lender may retain or assign
responsibility for servicing the loan, including the Note, the Mortgage, this Agreement and the other documents executed in connection therewith, or may delegate some or all of such responsibility and/or obligations to a servicer including, but not
limited to, any subservicer or master servicer, on behalf of the Investors. All references to Lender herein shall refer to and include any such servicer to the extent applicable. 

 

	13.	Tenant will, at the cost of Tenant, and without expense to Lender, do, execute, acknowledge and deliver all and every such further acts and assurances, as reasonably necessary, as Lender shall, from time to time,
reasonably require, for the better assuring and confirming unto Lender the property and rights hereby intended now or hereafter so to be pursuant to this Agreement, or for carrying out the intention or facilitating the performance of the terms of
this Agreement or for filing, registering or recording this Agreement, or for complying with all applicable laws. 

  

	14.	 Tenant acknowledges that Lender is obligated only to Landlord to make the Loan upon the terms and subject to the conditions set forth in the Loan
Documents. In no event shall Lender or any Successor, nor any heir, legal representative, successor, or assignee of Lender or any such purchaser or grantee (collectively the Lender, such purchaser, grantee, heir, legal representative, successor or
assignee, the “Subsequent Landlord”) have any personal liability for the obligations of Landlord under the Lease and should the Subsequent Landlord succeed to the interests of the Landlord under the Lease, Tenant shall look
only to the estate and property of any such Subsequent Landlord in the applicable Landlord Parcel(s) for the satisfaction of Tenant’s remedies for the collection of a judgment (or other judicial process) requiring the payment of money in the
event of any default by any Subsequent Landlord as landlord under the Lease, and no other property or assets of any Subsequent Landlord shall be subject to levy, execution or other 

  
 Exhibit C Form of SNDA
– 7 

	 	
enforcement procedure for the satisfaction of Tenant’s remedies under or with respect to the Lease; provided, however, that the Tenant may exercise any other right or remedy provided thereby
or by law in the event of any failure by Subsequent Landlord to perform any such material obligation. 

  

	15.	This Agreement constitutes the entire agreement of the parties hereto concerning its subject matter and may not be modified except in writing signed by the parties hereto. 

 

	16.	The provisions of this Agreement are valid and enforceable only upon execution by Landlord and Lender of an unmodified counterpart hereof and delivering a fully signed original to Tenant by
[            ]. 

 {Remainder of Page Intentionally Left Blank;
Signature Pages Immediately Follow} 

  
 Exhibit C Form of SNDA
– 8 

 IN WITNESS WHEREOF, this Subordination, Non-Disturbance and Attornment Agreement has been
signed and sealed on the day and year first above set forth. 
  

			
	Lender:
	
	  

		
	By:		  

	Name:		
	Title:		
	  
 Tenant:

 

	 KMART OPERATIONS, LLC
  

	By:		  

	Name:		
	Title:		
	  
 SEARS OPERATIONS, LLC

 

	By:		  

	Name:		
	Title:		
	  
 Landlord:

 

	 SERITAGE KMT FINANCE LLC
  

	By:		  

	Name:		
	Title:		
	  
 SERITAGE SRC FINANCE LLC

 

	By:		  

	Name:		
	Title:		

  
 Exhibit C Form of SNDA
– 9 

 LENDER NOTARY: 
  

									
	STATE OF	 	  
	 	)	  	 	  	 
					
		 		 	) SS:	  		  	
					
	COUNTY OF	 	  
	 	)	  		  	

 THE undersigned, a Notary Public in and for the County and State aforesaid, does hereby certify that
                                        
personally known to me to be the
                                        of
                                        , a
                                        , and
personally known to me to be the same person whose name is subscribed to the foregoing instrument, appeared before me this day in person and acknowledged under oath that in such capacity he/she signed and delivered the said instrument pursuant to
authority duly given to him/her by said
                                        . 

GIVEN under my hand and seal this     day of
            , 20    . 
  

	
	  

	
	Notary Public

  

	
	My Commission Expires:
	
	  

  
 Exhibit C Form of SNDA
– 10 

 TENANT NOTARY: 
  

									
	STATE OF		  
		)		 		 
					
					) SS:				
					
	COUNTY OF		  
		)				

 THE undersigned, a Notary Public in and for the County and State aforesaid, does hereby certify that
                                        
personally known to me to be the
                                        of
                                        , a
                                        , and
personally known to me to be the same person whose name is subscribed to the foregoing instrument, appeared before me this day in person and acknowledged under oath that in such capacity he/she signed and delivered the said instrument pursuant to
authority duly given to him/her by said
                                        .

 GIVEN under my hand and seal this     day of
            , 20    . 
  

	
	  

	
	Notary Public

  

	
	My Commission Expires:
	
	  

  

									
	STATE OF		  
		)		 		 
					
					) SS:				
					
	COUNTY OF		  
		)				

 THE undersigned, a Notary Public in and for the County and State aforesaid, does hereby certify that
                                        
personally known to me to be the
                                        of
                                        , a
                                        , and
personally known to me to be the same person whose name is subscribed to the foregoing instrument, appeared before me this day in person and acknowledged under oath that in such capacity he/she signed and delivered the said instrument pursuant to
authority duly given to him/her by said
                                        .

  
 Exhibit C Form of SNDA
– 11 

 GIVEN under my hand and seal this     day of
            , 20    . 
  

	
	  

	
	Notary Public

  

	
	My Commission Expires:
	
	  

  
 Exhibit C Form of SNDA
– 12 

 LANDLORD NOTARY: 
  

									
	STATE OF		  
		)		 		 
					
					) SS:				
					
	COUNTY OF		  
		)				

 THE undersigned, a Notary Public in and for the County and State aforesaid, does hereby certify that
                                        
personally known to me to be the
                                        of
                                        , a
                                        , and
personally known to me to be the same person whose name is subscribed to the foregoing instrument, appeared before me this day in person and acknowledged under oath that in such capacity he/she signed and delivered the said instrument pursuant to
authority duly given to him/her by said
                                        .

 GIVEN under my hand and seal this     day of
            , 20    . 
  

	
	  

	
	Notary Public

  

	
	My Commission Expires:
	
	  

  

									
	STATE OF		  
		)		 		 
					
					) SS:				
					
	COUNTY OF		  
		)				

 THE undersigned, a Notary Public in and for the County and State aforesaid, does hereby certify that
                                        
personally known to me to be the
                                        of
                                        , a
                                        , and
personally known to me to be the same person whose name is subscribed to the foregoing instrument, appeared before me this day in person and acknowledged under oath that in such capacity he/she signed and delivered the said instrument pursuant to
authority duly given to him/her by said
                                        .

  
 Exhibit C Form of SNDA
– 13 

 GIVEN under my hand and seal this      day of
            , 20    . 
  

	
	  

	
	Notary Public

  

	
	My Commission Expires:
	
	  

  
 Exhibit C Form of SNDA
– 14 

 EXHIBIT “A” 

LIST AND LEGAL DESCRIPTIONS-FEE PROPERTIES 

PROPERTIES 

  
 Exhibit “A” to
the Form of SNDA 

 EXHIBIT D 

LANDS’ END PREMISES 
  

							
	 	  	 Store

Number
	  	 City
	 	 State

	1089	  	Sears	  	Anchorage	 	AK
	1538	  	Sears	  	Citrus Heights	 	CA
	1438	  	Sears	  	El Cajon	 	CA
	1159	  	Sears	  	Fairfield	 	CA
	1156	  	Sears	  	Roseville	 	CA
	1478	  	Sears	  	San Bruno	 	CA
	1648	  	Sears	  	San Diego	 	CA
	2308	  	Sears	  	Santa Cruz	 	CA
	1178	  	Sears	  	Santa Monica	 	CA
	1148	  	Sears	  	Ventura	 	CA
	1193	  	Sears	  	Waterford	 	CT
	1063	  	Sears	  	West Hartford	 	CT
	1645	  	Sears	  	Boca Raton	 	FL
	1415	  	Sears	  	Clearwater	 	FL
	1225	  	Sears	  	Orlando	 	FL
	1625	  	Sears	  	Sarasota	 	FL
	1385	  	Sears	  	Atlanta	 	GA
	2212	  	Sears	  	Cedar Rapids	 	IA
	1750	  	Sears	  	Orland Park	 	IL
	1830	  	Sears	  	Ft. Wayne	 	IN
	1101	  	Sears	  	Overland Pk	 	KS
	1053	  	Sears	  	Saugus	 	MA
	1864	  	Sears	  	Cockeysville	 	MD
	1450	  	Sears	  	Roseville	 	MI
	1490	  	Sears	  	Troy	 	MI
	1132	  	Sears	  	Burnsville	 	MN
	1122	  	Sears	  	Maplewood	 	MN
	1185	  	Sears	  	Asheville	 	NC
	2443	  	Sears	  	Manchester	 	NH
	1313	  	Sears	  	Nashua	 	NH
	2663	  	Sears	  	Portsmouth	 	NH
	1003	  	Sears	  	Salem	 	NH
	1574	  	Sears	  	Middletown	 	NJ

  
 Exhibit D Lands’ End
Premises – 1 

							
	 	  	 Store

Number
	  	 City
	 	 State

	1294	  	Sears	  	Watchung	 	NJ
	1434	  	Sears	  	Wayne	 	NJ
	1103	  	Sears	  	Albany	 	NY
	1623	  	Sears	  	Clay	 	NY
	1794	  	Sears	  	East Northport	 	NY
	1264	  	Sears	  	Hicksville	 	NY
	1584	  	Sears	  	Victor	 	NY
	1944	  	Sears	  	Yorktown Heights	 	NY
	1410	  	Sears	  	Canton	 	OH
	1520	  	Sears	  	Chapel Hill	 	OH
	1560	  	Sears	  	Dayton	 	OH
	1350	  	Sears	  	Mentor	 	OH
	1430	  	Sears	  	Middleburg Heights	 	OH
	1220	  	Sears	  	Toledo	 	OH
	1119	  	Sears	  	Happy Valley	 	OR
	1083	  	Sears	  	Warwick	 	RI
	1146	  	Sears	  	Cordova	 	TN
	1186	  	Sears	  	Memphis	 	TN
	1067	  	Sears	  	Houston	 	TX
	1888	  	Sears	  	West Jordan	 	UT
	1284	  	Sears	  	Alexandria	 	VA
	1814	  	Sears	  	Fairfax	 	VA
	1265	  	Sears	  	Virginia Beach	 	VA
	2514	  	Sears	  	Warrenton	 	VA
	1069	  	Sears	  	Redmond	 	WA
	2239	  	Sears	  	Vancouver	 	WA
	2382	  	Sears	  	Madison	 	WI

  
 Exhibit D Lands’ End
Premises – 2 

 SCHEDULE 1.7(d) 

FORM OF RECAPTURE NOTICE 
 [DATE]

 [ADDRESS OF TENANT] 
 RECAPTURE NOTICE

 Pursuant to Section 1.7 of the Master Lease 

For Sears / Kmart Store [STORE NUMBER] 

[NOTE: ANY TENANT RESPONSE REQUIRED WITHIN 30 DAYS] 

Seritage Finance LLC (“Landlord”) hereby notifies Kmart Operations LLC and Sears Operations LLC
(“Tenant”) of its intention to recapture space pursuant to Section 1.7 of the Master Lease by and among Seritage Finance LLC, Kmart Operations LLC and Sears Operations LLC, dated as of
                , 2015 (the “Master Lease”). All terms used herein but not otherwise defined have the meaning ascribed to them in the Master
Lease. 
 This Recapture Notice pertains to Store Number      at [STORE ADDRESS]. 

The Proposed Recapture Date is:
                    . Tenant has sixty (60) days after receipt of this Recapture Notice to give notice of a Tenant Recapture Termination Date,
if desired, which shall not be less than ninety (90) days after receipt of this Recapture Notice. 
 Following the Actual Recapture
Date, the following terms will apply with respect to the modified Demised Premises. 
  

	 	•	 	Annual Base Rent:                      

 

	 	•	 	Tenant’s Proportionate Share of all Property Charges:                      

 

	 	•	 	Monthly Installment Expenses payable by Tenant:                      

A site plan showing the applicable Tenant Retained Space and the Recapture Space with respect to the modified Demised Premises, along with a
description of the Tenant Retained Space, is attached as Exhibit A. 
 A modified Schedule 2 to the side letter to the
Master Lease reflecting the applicable adjustments for the modified Demised Premises is attached as Exhibit B. A copy of a title report with respect to this Property pursuant to Section 1.7(e) of the Master Lease is attached as
Exhibit C. 

  
 Schedule 1.7(d) Form of
Recapture Notice – 1 

 SHOULD TENANT DISAGREE WITH ANY OF THE FOREGOING ITEMS, PURSUANT TO THE MASTER LEASE TENANT
SHALL SEND LANDLORD A NOTICE WITHIN THIRTY (30) DAYS OF RECEIPT OF THIS RECAPTURE NOTICE SETTING FORTH THE NATURE OF TENANT’S DISAGREEMENT IN REASONABLE DETAIL. 

 

			
	SERITAGE KMT FINANCE LLC
		
	By:		  

	Name:		
	Title:		
	
	SERITAGE SRC FINANCE LLC
		
	By:		  

	Name:		
	Title:		

  
 Schedule 1.7(d) Form of
Recapture Notice – 2 

 Exhibit A 

Site Plan and Description of Tenant Retained Space 

  
 Exhibit A to Schedule
1.7(d) Form of Recapture Notice 

 Exhibit B 

Modified Schedule 2 to the Master Lease 

  
 Exhibit B to Schedule
1.7(d) Form of Recapture Notice 

 Exhibit C 

Title Report 

  
 Exhibit C to Schedule
1.7(d) Form of Recapture Notice 

 SCHEDULE 1.7(j)(ii) 

GENERAL REQUIREMENTS AND CONDITIONS 

All provisions of this Schedule 1.7(j)(ii) are intended to supplement the provisions in the Master Lease above governing
any general construction work performed by Landlord, or by Tenant, including without limitation Recapture Separation Work, Additional Recapture Space recapture and separation work, or any casualty or Condemnation restoration, or Tenant Alterations.
In the event of any conflict between the express provisions of the Master Lease and this Schedule 1.7(j)(ii), the former shall control. All of the foregoing performed by either Party shall be referred to as
“Landlord’s Work” or “Tenant’s Work,” respectively. 
 Tenant’s Work will be
performed by Tenant in accordance with final plans and specifications approved by Landlord (as and to the extent such plans and specifications and/or approval is provided for in the Master Lease). Tenant’s contractor(s) shall secure and pay for
all necessary permits, inspections, certificates, legal approvals, Certificate of Occupancy and/or fees required by public authorities and/or utility companies with respect to Tenant’s Work. 

 

	A.	General Requirements 

 1. All Landlord’s Work or Tenant’s Work installed by
Tenant or Landlord shall be coordinated with, completed in harmony with and so as not to unreasonably interfere with, Landlord’s or Tenant’s construction schedule, business operations, nor any other tenant’s or subtenant’s
activities, including with respect to Landlord’s tenants in the Recapture Space or under any of the Leases. 
 2. All contractors
employed by either Landlord or Tenant shall allow other contractors, even of the same trade, to work on the Demised Premises without interference and in accordance with the spirit and intent of Paragraph 1 above. 

3. Tenant and Tenant’s contractors shall provide all insurance required by Landlord as set forth in this Lease, or as is otherwise
maintained in the ordinary course by prudent and reputable contractors and/or property owners, or as otherwise reasonably required by Landlord, prior to the start of any construction work within the Demised Premises. Landlord and Landlord Mortgagee
shall each be named as an additional insured in all such insurance. 
 4. Tenant shall, at all times, keep or cause to be kept the Demised
Premises and the surrounding area free from accumulations of waste materials and/or rubbish caused by it or its contractors’ employees or workers and shall not place or permit to be placed any waste materials and/or rubbish on the Common Areas
or other areas of Landlord’s Premises. Tenant and/or its contractors shall provide dumpsters and maintenance of said dumpsters during the construction period in a secure, neat and orderly condition and shall remove and empty the same on a
regular basis to avoid unsightly, obstructive or hazardous accumulations or conditions. 
 5. Tenant shall provide Landlord prior written
notice (except in case of an emergency) of the proposed commencement date of (a) any Tenant Alterations to be done within or to the Demised Premises as provided in the Master Lease, and of (b) other Tenant’s Work with a cost in excess
of $100,000 in any one (1) instance with respect to an individual 

  
 Schedule 1.7(j)(ii)
– 1 

 
Demised Premises, and Landlord shall provide Tenant at least thirty (30) days’ prior written notice of the estimated completion of any Recapture Restoration Work or any Additional
Recapture Space recapture and separation work. 
 6. Tenant shall coordinate the parking of contractor vehicles, the placement of dumpsters
and the staging area for construction materials, furniture, fixtures and other equipment, with Landlord’s or any of its tenants’ construction representatives and construction coordinators so as not to disrupt Landlord’s or
tenants’ operations or interfere with customer parking. All construction materials, furniture, fixtures and other equipment shall be kept within Tenant’s Demised Premises or within areas of the parking lot designated by Landlord following
proposal from and consultation with the Tenant, both Parties acting reasonably and in good faith. 
  

	B.	Construction Procedures 

 1. When submitting construction plans and specifications
(preliminary, completed or final), Tenant or the Tenant’s appointed representative shall issue Tenant’s plans, specifications and supporting documents electronically via emails to Landlord’s construction coordinator. 

2. Tenant can elect to contract with architects, engineers and other construction professionals of good repute, which are experienced,
financially responsible and duly licensed in the jurisdiction in which the Demised Premises is located (“Construction Professionals”) of its choosing for the preparation of the construction plans and specifications. The
architect (and other Construction Professionals, as appropriate) shall prepare detailed construction drawings for the work to be performed at the Demised Premises, incorporating the improvements to comply with all of Tenant’s obligations under
this Master Lease or as determined by Landlord in consultation with Tenant with respect to work to be done on behalf of Landlord. Such drawings will be forwarded to Landlord for its review and comment to the extent Landlord’s approval of same
is required under the Master Lease. 
 3. All contractors engaged by Tenant shall be bondable contractors, possessing good labor relations,
capable of performing quality workmanship and working in harmony with any contractor hired by Landlord or Landlord’s tenants. Tenant shall permit union licensed contractors to bid on Tenant’s Work, but Tenant shall not be obligated to
engage such contractors unless union labor is required in the area where the Demised Premises is located. Tenant shall retain sufficient documentation evidencing union contractor bidding and shall provide such documentation to Landlord upon fifteen
(15) days’ prior written request. In the event Tenant does not permit union licensed contractors to bid on Tenant’s Work (“Union Bidding”) and Landlord is picketed or involved in a dispute with the unions due
to Tenant’s failure to permit Union Bidding, then Tenant shall indemnify, defend and hold Landlord, its officers, directors, partners, employees and contractors harmless from and against any and all damages, claims, losses and expenses
(including, without limitation, attorneys’ fees, expert witness fees and court costs) incurred by Landlord due to Tenant’s failure to permit Union Bidding. All work shall be coordinated with the general project work. Tenant shall use its
commercially reasonable efforts to cause its contractors to maintain harmony and avoid any and all disputes with labor unions in which Tenant’s contractors or any person or entity performing work on behalf of Tenant may become involved. Tenant
shall be responsible for any delay, disruption, obstruction or hindrance in the completion of Tenant’s Work and any damages and 

  
 Schedule 1.7(j)(ii)
– 2 

 
extra costs resulting from such disputes, except with respect to work for which Landlord is financially responsible under the Master Lease, but expressly excluding all of Tenant’s Acts.
Tenant shall use its commercially reasonable efforts to cause its contractors to take all action including, but not limited to, filing charges with the N.L.R.B. and pursuing litigation to prevent or end any stoppage or slowdown of Tenant’s
Work. 
 4. Construction shall comply in all respects with applicable Legal Requirements. 

5. Upon Landlord’s request from time to time, Tenant shall assign to Landlord any or all contracts or agreements with contractors,
vendors, suppliers and/or Construction Professionals as designated by Landlord in connection with all Tenant Work performed on behalf of Landlord. 

  
 Schedule 1.7(j)(ii)
– 3 

 SCHEDULE 1.8(a) 

FORM OF ADDITIONAL RECAPTURE SPACE TERMINATION NOTICE 

[DATE] 
 [ADDRESS OF TENANT] 

ADDITIONAL RECAPTURE SPACE TERMINATION NOTICE 

Pursuant to Section 1.8 of the Master Lease 

For Sears / Kmart Store [STORE NUMBER] 

[NOTE: ANY TENANT RESPONSE REQUIRED WITHIN 30 DAYS] 

Seritage Finance LLC (“Landlord”) hereby notifies Kmart Operations LLC and Sears Operations LLC
(“Tenant”) of its intention to recapture space pursuant to Section 1.8 of the Master Lease by and among Seritage Finance LLC, Kmart Operations LLC and Sears Operations LLC, dated as of
                , 2015 (the “Master Lease”). All terms used herein but not otherwise defined have the meaning ascribed to them in the Master
Lease. 
 This Additional Recapture Space Termination Notice pertains to Store Number      at [STORE ADDRESS].

 The Proposed Additional Recapture Space Date is:
                    . Tenant has sixty (60) days after receipt of this Recapture Notice to give notice of a Tenant Additional Recapture Space
Termination Date, if desired, which shall not be less than ninety (90) days after receipt of this Recapture Notice. 
 Following the
Actual Additional Recapture Space Termination Date, the following terms will apply with respect to the modified Demised Premises. 
  

	 	•	 	Annual Base Rent:                      

 

	 	•	 	Tenant’s Proportionate Share of all Property Charges:                      

 

	 	•	 	Monthly Installment Expenses payable by Tenant:                      

A site plan showing the applicable Tenant Retained Space and the Additional Recapture Space with respect to the modified Demised Premises,
along with a description of the Tenant Retained Space, is attached as Exhibit A. 

  
 Schedule 1.8(d) – 1

 A modified Schedule 2 to the side letter to the Master Lease reflecting the
applicable adjustments for the modified Demised Premises is attached as Exhibit B. A copy of a title report with respect to this Property pursuant to Section 1.8(b) of the Master Lease is attached as Exhibit C. 

SHOULD TENANT DISAGREE WITH ANY OF THE FOREGOING ITEMS, PURSUANT TO THE MASTER LEASE TENANT SHALL SEND LANDLORD A NOTICE WITHIN THIRTY
(30) DAYS OF RECEIPT OF THIS RECAPTURE NOTICE SETTING FORTH THE NATURE OF TENANT’S DISAGREEMENT IN REASONABLE DETAIL. 
  

			
	SERITAGE KMT FINANCE LLC
		
	By:		  

	Name:		
	Title:		
	
	SERITAGE SRC FINANCE LLC
		
	By:		  

	Name:		
	Title:		

  
 Schedule 1.8(d) – 2

 Exhibit A 

Site Plan and Description of Tenant Retained Space 

  
 Exhibit A to Schedule
1.8(d) 

 Exhibit B 

Modified Schedule 2 to the Master Lease 

  
 Exhibit B to Schedule
1.8(d) 

 Exhibit C 

Title Report 

  
 Exhibit C to Schedule
1.8(d) 

 SCHEDULE 2.1(a) 

EBITDAR METHODOLOGY 
  

											
	 General Ledger Account
	  	Footnote	 	 	Calculation	 	12 Months Ended
January 2015
Property 01478
All Reporting Divisions	 
				
	 A04103 Merchandise Sales
	  				 		 	 	37,181,276	  
				
	 A04107 Auto Center Revenues External
	  				 		 	 	2,073,605	  
	 A04108 Delivery Revenues External
	  				 		 	 	232,543	  
	 A04109 PA Revenues External
	  				 		 	 	594,439	  
	 A04110 Service Income Revenues External
	  				 		 	 	(982	) 
	 A04113 SPP Revenue External
	  				 		 	 	20,357	  
	 A04114 Miscellaneous Income Revenues External
	  				 		 	 	(474,368	) 
	 A04118 Tenant Income External
	  				 		 	 	108,270	  
	 A04123 Support Services Revenues External
	  				 		 	 	(4,103	) 
	 A04115 Credit Revenues External
	  				 		 	 	282,740	  
	 A04116 Licensed Business Revenues External
	  				 		 	 	268,380	  
		  				 		 	  
	  
	 
	 A04104 Other Revenues
								 	3,100,881	  
		  				 		 	  
	  
	 
				
	 A04101 Total Revenue
						(A04103+A04104)		 	40,282,157	  
		  				 		 	  
	  
	 
									 	—  	  
				
	 A05102 Cost of sales
								 	26,870,740	  
				
	 A05113 Occupancy Taxes
		 	(1	) 				 	301,942	  
	 A05114 Utility Expense
								 	329,526	  
	 A05115 Building Expenses
		 	(2	) 				 	387,152	  
		  				 		 	  
	  
	 
	 A05107 Occupancy
								 	1,018,620	  
		  				 		 	  
	  
	 
				
	 A05101 Cost of sales, buying and occupancy
						(A05102+A05107)		 	27,889,360	  
		  				 		 	  
	  
	 

											
	 A06160 Payroll & Incentive
								 	5,074,817	  
	 A06161 Benefits & Taxes
								 	981,079	  
	 A06162 Associate Expenses
								 	27,376	  
	 A06163 Equipment Costs
								 	31,490	  
	 A06164 Data Processing
								 	837	  
	 A06165 Taxes
								 	41,834	  
	 A06166 Occupancy Related
								 	2,072	  
	 A06167 Communication Expense
								 	84,171	  
	 A06168 Advertising Expense
		 	(3	) 				 	1,351,248	  
	 A06169 Supplies & Postage
								 	238,437	  
	 A06170 Insurance Charges
		 	(3	) 				 	229,059	  
	 A06171 Bank Card Expense
								 	338,585	  
	 A06172 Check Expense
								 	6,624	  
	 A06173 Cash Over/Short
								 	19,509	  
	 A06174 Operating Services
								 	124,856	  
	 A06176 Reclasses
		 	(4	) 				 	(956,475	) 
	 A06177 Miscellaneous SG&A
								 	67,767	  
	 A06178 Outside Services
								 	66,652	  
	 A06179 Display Expenses
								 	113,240	  
	 A06237 Support Services Chargeouts
								 	(542	) 
		  				 		 	  
	  
	 
				
	 A06124 Selling and administrative expenses
		 	(5	) 				 	7,842,636	  
				
	 A06125 Depreciation & Amortization
								 	1,656,792	  
		  				 		 	  
	  
	 
				
	 A06101 Total costs and expenses
						(A05101+A06124+A06125)		 	37,388,788	  
		  				 		 	  
	  
	 
	      
										
		  				 		 	  
	  
	 
				
	 A00908 Operating income (loss)
						(A4101-A06101)		 	2,893,369	  
		  				 		 	  
	  
	 
	      
										
		  				 		 	  
	  
	 
	 EBITDAR
						(A06125+A00908)				
		  				 		 	  
	  
	 
	      
										
		  				 		 	  
	  
	 
									 	4,550,161	  
		  				 		 	  
	  
	 

 Footnotes 

 

	(1)	Reimbursement of property taxes paid by Seritage.  

	(2)	Reimbursement of certain expenses paid by Seritage after the Multi-Tenant Occupancy Date. 

	(3)	Includes the allocation of certain corporate expenses.  

	(4)	Primarily related to Sears Auto Centers. COGS moved to SG&A.  

	(5)	Overhead structure not generally allocated to property operating statements. Primarily includes: Corporate office (finance, accounting, HR, inventory, merchandising, IT, business leadership, etc) and regional
management. 

 SCHEDULE 2.1(b) 

LEASE GUARANTORS 
  

	1.	A&E Factory Service, LLC 

	2.	A&E Home Delivery, LLC 

	3.	A&E Lawn & Garden, LLC 

	4.	A&E Signature Service, LLC 

	5.	California Builder Appliances, Inc. 

	6.	Florida Builder Appliances, Inc. 

	7.	KLC, Inc. 

	8.	Kmart Corporation 

	9.	Kmart Holding Corporation 

	10.	Kmart of Michigan, Inc. 

	11.	Kmart of Washington LLC 

	12.	Kmart Stores of Illinois LLC 

	13.	Kmart Stores of Texas LLC 

	14.	Kmart.com LLC 

	15.	Sears Brands Management Corporation 

	16.	Sears Holdings Corporation 

	17.	Sears Holdings Management Corporation 

	18.	Sears Home Improvement Products, Inc. 

	19.	Sears Protection Company 

	20.	Sears Protection Company (Florida), L.L.C. 

	21.	Sears Roebuck Acceptance Corp. 

	22.	Sears Roebuck and Co. 

	23.	Sears Roebuck de Puerto Rico, Inc. 

	24.	SOE, Inc. 

	25.	StarWest, LLC 

	26.	MyGofer LLC 

	27.	Private Brands, Ltd. 

 SCHEDULE 10.2(e) 

OPERATING EXPENSES 

“Operating Expenses” means: All costs and expenses of any kind, nature, and description incurred in connection with
the maintenance, operation, care and repair of the Property which are desirable for the operation and maintenance of the Property, including the governance, management and administration of this Master Lease, the Leases, and all future leases of
portions of the Property by Landlord, in accordance with the standard maintained in the City and State in which the Property is located for similar buildings and sites (subject to any other specific standards applicable to the Demised Premises as
provided in this Master Lease), and which are not duplicative of other costs and expenses provided in the Master Lease or otherwise required to be paid or reimbursed by Tenant under this Master Lease. The following types of expenses are by way of
illustration and not by way of limitation of the generality of the foregoing: 
 (1) the cost of providing all heating, ventilating, air
conditioning, water and waste-water services and other utilities to the buildings in which the Demised Premises are located; 
 (2) the cost
of refuse, rubbish and garbage collection and removal for the Property; 
 (3) cleaning, gardening and landscaping the Property (including,
without limitation, the Common Areas); 
 (4) costs of tie-ins or other costs for providing sanitary or storm sewers or control to and for
the Property and Demised Premises; 
 (5) inspection and permit fees, accounting fees, and attorney and other professional fees incurred by
Landlord in connection with the operation of the Property or the Demised Premises; 
 (6) repairs and replacements of the paving and
resurfacing of parking lots (as reasonably required), curbs, fencing, walkways, electrical power lines, light poles, bulbs, drainage systems and equipment used on the Property (including the Common Areas); 

(7) line painting; 
 (8)
attending the parking areas (if necessary); 
 (9) any governmental charges, surcharges, fees or taxes on the parking areas or parking
spaces or on vehicles parking therein; 
 (10) security services, including electronic response and surveillance and/or private police
protection if obtained; 
 (11) repair or replacement of on-site water lines, sanitary sewer lines and storm sewer lines serving the
Property; 

  
 Schedule 10.2(e) – 1

 (12) rental of machinery, equipment and tools used in operating and maintaining the Property and
all buildings and improvements thereon; 
 (13) reasonable amortization or depreciation of equipment purchased and used for operating or
maintaining (i) the Property and/or (ii) all buildings and improvements thereon; 
 (14) costs of signs, sign maintenance and
sound systems; 
 (15) all personal property and similar taxes on equipment, machinery, tools, supplies and other personal property and
facilities used in the maintenance of the Property; 
 (16) compensation, paid to any person specifically providing direct services with
respect to the Property (as opposed to a person in the general employ of Landlord), including the classification of building superintendent; 

(17) all repairs to the Property and all buildings and improvements thereon (provided that with respect to the Demised Premises,
any such repairs shall not materially exceed the standard of repairs for which Tenant is obligated under the Master Lease); 
 (18) all
supplies and replacement items required for the Property; 
 (19) all costs for restoration, relocation or expansion of the Common Areas of
the Property; 
 (20) all charges for maintenance contracts, inspection contracts, HVAC, escalator and elevator contracts and similar
contracts for the Property, together with all reasonable costs, fees and expenses of attorneys, accountants, tax-reduction personnel, building inspectors, architects, construction engineers, environmental engineers and inspectors, and other
professionals and experts in connection with the maintenance, repair and operation of the Property; 
 (21) [Intentionally Omitted];; 

(22) all insurance with respect to the Property, including Landlord’s Insurance Costs; 

(23) all costs and expenses incurred by Landlord pursuant to all Operating Agreements; 

(24) all costs and expenses incurred by Landlord to perform Landlord’s obligations under Section 10.3; and 

(25) [Intentionally Omitted]. 

Notwithstanding the foregoing, Operating Expenses shall expressly exclude: 

(1) costs of maintenance and repair reimbursed by insurance proceeds or paid for by other tenants of the Property separate from their share of
any Operating Expenses; 

  
 Schedule 10.2(e) – 2

 (2) repairs, maintenance, alterations, tenant improvements, tenant allowances, free rent or other
tenant concessions, or other specific costs attributable solely to other tenants’ space in the Property or billed to such tenants; 

(3) brokerage and leasing commissions, advertising expenses and other costs incurred in leasing or re-leasing space in the Property,
including, without limitation, any Recapture Space or Additional Recapture Space; 
 (4) debt service, interest on borrowed money or debt
amortization; 
 (5) depreciation on the Property or equipment or systems therein; 

(6) attorneys’ fees and expenses incurred in connection with lease negotiations or lease disputes; 

(7) the cost (including any amortization thereof) of any improvements or alterations which would be properly classified as capital
expenditures according to generally accepted accounting principles, except for items referred to in Item (24) or any other items of Operating Expenses above; 

(8) the cost of decorating, improving for tenant occupancy, painting or redecorating portions of any building to be demised to tenants; 

(9) the cost of all Recapture Separation Work and all similar work with respect to any Additional Recapture Space, including, without
limitation, any construction management or supervisory fees or expenses; 
 (10) costs, fees or expenses of or related to any separation,
construction, redevelopment or reletting of any Recapture Space or Additional Recapture Space; 
 (11) salaries and other compensation of
personnel in the general employ of Landlord or any of its subsidiaries or affiliates; 
 (12) advertising and promotional fees in excess of
five thousand dollars ($5,000) per calendar year; 
 (13) the costs of artwork or sculpture; 

(14) costs for repairs or other work occasioned by fire, windstorm or other casualty which are fully reimbursed by insurance; 

(15) wages, salaries or other compensation paid for clerks or attendants in concessions or newsstands operated by Landlord or Landlord’s
affiliates; 
 (16) costs or expenses charged to or payable by other third-party tenants of Landlord (including utility charges) other than
as part of Operating Expenses; 

  
 Schedule 10.2(e) – 3

 (17) any costs or expenses which are otherwise reimbursed to Landlord, other than as part of a
Tenant’s Proportionate Share of Operating Expenses or CAM Expenses; provided, however, that notwithstanding any provision in this Master Lease to the contrary, in no event shall Landlord be entitled to bill, receive and retain
from Tenant and all third-party tenants (subject to final adjustments and accounting) an aggregate of more than one hundred percent (100%) of all actual costs and expenses paid or incurred by Landlord on account of Operating Expenses or any
other Installment Expenses and if Landlord shall receive more than one hundred percent (100%) (“Excess Expenses”), Landlord shall promptly refund to Tenant an amount equal to the lesser of (i) the amount of such
Excess Expenses, or Tenant’s Proportionate Share thereof (from and after the Multi-Tenant Occupancy Date), and (ii) the actual amount paid by Tenant on account of all Operating Expenses or other Installment Expenses. 

(18) overhead or administrative fees, costs or expenses of Landlord, or any subsidiaries or affiliates of Landlord (including any profit
increments to any such subsidiaries or affiliates); 
 (19) charitable or political donations or contributions; 

(20) interest, charges or penalties arising by reason of Landlord’s failure to timely pay any Impositions, CAM Expenses, (so long as
timely paid by Tenant to Landlord), other Operating Expenses or other Property Charges, to the extent Landlord is required or has undertaken to do so under this Master Lease; 

(21) any management fee or construction management or supervisory fee, with respect to the Demised Premises or the Property, other than any
such fees (if any) which are payable to unrelated third-parties, pursuant to any REAs or Operating Agreements, but in no event with respect to any Recapture Separation Work or any work in connection with any Additional Recapture Space; 

(22) any fees or other compensation for services (other than reimbursement for out-of pocket expenses) with respect to the Property paid to
Tenant or any Affiliate of Tenant pursuant to any separate agreement for services between Landlord or any Affiliate of landlord, and Tenant or any Affiliate of Tenant; 

(22) any costs or expenses arising out of or related to any breach or default by Landlord pursuant to the Master Lease or any negligence,
gross negligence or willful misconduct of Landlord; or 
 (24) any costs or expenses arising out of or related all matters for which
Landlord is required to indemnify, defend or hold harmless Tenant pursuant to the Master Lease. 

  
 Schedule 10.2(e) – 4

 SCHEDULE 14.4 

LANDLORD MORTGAGE DOCUMENTS 
  

	1.	Loan Agreement 

	2.	Promissory Note 

	3.	Mortgages/Deeds of Trust for all Properties 

	4.	Pledge and Security Agreement (JV Equity for GGP JV, Simon JV and Macerich JV) 

	5.	Consent (GGP JV Agreement) 

	6.	Consent (Simon JV Agreement) 

	7.	Consent (Macerich JV Agreement) 

	8.	Cash Management Agreement 

	9.	Clearing Account DACA 

	10.	Operating Account DACA (See Schedule 4) 

	11.	Environmental Indemnity Agreement 

	12.	Recourse Carve-Out Guaranty 

	13.	Assignment and Subordination of Management Agreement 

	14.	Assignment and Subordination of SHLD TSA 

	15.	Assignment of Interest Rate Cap 

	16.	Title Instruction Letter 

 SCHEDULE 20.6 

ADDITIONAL PROVISIONS WITH RESPECT TO ENVIRONMENTAL MATTERS WITH RESPECT TO THE DEMISED PREMISES AND SACS 

Notwithstanding anything to the contrary elsewhere in this Master Lease, the following terms and provisions shall apply to and govern
Tenant’s use and occupancy of the Demised Premises and the portion thereof containing or relating to SACs, and the conduct of the Tenant’s use and operation of the Demised Premises and the Stores, all of which terms and provisions Tenant
shall observe, perform and comply with promptly and at its sole cost and expense: 
 (a) Storage. All scrap/discarded mufflers or
other equipment, parts, tires, batteries/battery cores, brake linings, wiper blades and other potentially hazardous by-products or results of Tenant’s operations, all other debris and waste or used products (including, without limitation, motor
oils and petroleum and nonpetroleum products), and all Hazardous Substances, must be stored in accordance with the Environmental Ordinary Course of Business. 

(b) Parking. Tenant shall cause its employees to park all automobiles which are in the process of service and/or maintenance either
inside the Demised Premises or solely within that portion of the Common Areas identified as parking areas for Sears Store customers in any Encumbrances or, at the request of Landlord, in such specific locations thereof as may be designated from time
to time by Landlord. 
 (c) Environmental Best Management Practices. In using each and all of the Demised Premises or operating the
automobile care service business at the Demised Premises, Tenant shall use best management practices in managing all Hazardous Substances, including, but not limited to, strictly complying with all of the following: 

(i) Compliance With Environmental Laws and Legal Requirements. Tenant shall comply, and shall cause the Demised Premises
and all activities thereon to strictly comply, with all Environmental Laws and all other Legal Requirements now or hereafter in effect. Tenant shall procure and maintain in full force and effect at all times any and all licenses, permits, approvals,
consents or authorizations required under any Environmental Laws or other Legal Requirements for the conduct of Tenant’s operations on the Demised Premises (“Environmental Permits”), and Tenant shall not take, suffer or
permit any action which would violate any such Environmental Permits, nor fail to take any action the failure of which would violate or cause the suspension or revocation of any such Environmental Permits. Tenant shall timely make all applications
to renew and extend all Environmental Permits. Landlord shall reasonably cooperate, at Tenant’s expense, with Tenant’s efforts to procure such Environmental Permits, but Landlord shall not incur any expense, liability or obligation with
respect to any such Environmental Permits. 
 (ii) Release and Generation of Hazardous Substances. Tenant shall not
cause or permit the release, threatened release, abandonment, treatment, dumping, discharging or disposal of any Hazardous Substances on, from, under or 

  
 Schedule 20.6 – 1

 
about the Demised Premises, the Properties and/or the Shopping Center (if applicable). Tenant shall not use, manage, handle, store, generate or transport or permit the use, management, handling,
generation or transportation of Hazardous Substances on, under or from the Demised Premises except to the extent necessary for Tenant’s business operations and then only in strict compliance with applicable Environmental Laws and other Legal
Requirements. In addition, Tenant shall not manage (except as a generator), store or dispose of any hazardous waste, as such term is defined under applicable Environmental Law, or Hazardous Substances on, from or under the Demised Premises or take
any action or allow any activity, in each case that would cause the Demised Premises to be considered a hazardous waste treatment, storage or disposal facility within the meaning of any applicable Environmental Law. 

(iii) Removal of Waste Oils and Solvents. Tenant shall cause all waste oils, solvents and other used petroleum and
nonpetroleum waste to be removed periodically (but not less frequently than once per month or period as may be customary in the industry) and transported from the Demised Premises by a properly licensed, experienced and reputable waste removal
contractor, to be disposed of at duly licensed facilities, all in strict accordance with all applicable Legal Requirements and Environmental Laws. 

(iv) Oil-Water Separator. Tenant shall regularly (at least annually or such shorter period as required by Environmental
Laws) cause the oil-water separator to be dredged, cleaned and refilled and the filtration material replaced, removed and transported by a properly licensed and reputable waste removal contractor, approved in advance by Landlord, to be disposed of
at duly licensed facilities in strict accordance with all applicable Legal Requirements and Environmental Laws. 
 (v)
Environmental Equipment; Remediation. Subject to the provisions of Section 20.3(b): 
 (A) Tenant shall
not use or install or allow the use or installation of any Environmental Equipment on the Demised Premises which is first used or installed after the Effective Date located in whole or in part beneath the surface of the ground without
Landlord’s prior written consent (provided, that Tenant may use the preexisting Environmental Equipment located at the Demised Premises on the date of this Master Lease, subject to the further provisions hereof). Tenant is solely
responsible for any liability, damage, cost or claim resulting from, relating to or arising out of any such use or installation. If Tenant installs or uses any Environmental Equipment which is involved in or related to any Known Environmental
Problem, Tenant shall, at or before the time that it vacates the Demised Premises and at any rate on or before the effective date of such vacating, unless otherwise directed by Landlord: (i) remove, dispose or repair the same if required in
compliance with all Environmental Laws; (ii) restore the Demised Premises to their original condition (excluding and after removal of any and all Environmental Equipment); and (iii) comply with all obligations related thereto under all
Environmental Laws; 

  
 Schedule 20.6 – 2

 (B) Subject to the foregoing, with respect to all Known Environmental Problems,
Tenant agrees to operate, maintain, abandon, close, remove, repair and replace all Environmental Equipment as may be necessary in accordance with applicable Environmental Laws, including, without limitation, being responsible for the removal,
replacement, treatment and disposal of soils, building materials, equipment and/or groundwater impacted with or by Hazardous Substances and disturbed, exposed or released during such operation, maintenance, abandonment, removal, repair and
replacement activities; 
 (C) Upon removal of any Environmental Equipment, Tenant shall promptly: (x) investigate
whether any release of Hazardous Substances occurred in connection with such Environmental Equipment; (y) promptly after the removal thereof notify Landlord in writing of all releases of Hazardous Substances and/or any contamination discovered
as a result of such investigation, and provide Landlord with all results thereof and all tests and reports in connection therewith; and (z) using a consultant and methods reasonably approved in advance by Landlord and in full accordance with
all applicable Environmental Laws, remove all such Hazardous Substances and repair all damage to the Demised Premises, the Properties and/or the Shopping Center (if applicable); 

(D) Without limiting the foregoing provisions of subparagraph (C), in the event that Tenant removes, replaces, repairs or
modifies a hydraulic lift, Tenant shall, in accordance with applicable Environmental Laws, promptly remove, replace and properly dispose of all soils and/or groundwater which: (x) are impacted with Hazardous Substances, including, but not
limited to, oils, petroleum products and/or petroleum-derived products; and/or (y) are exposed or disturbed by the removal, replacement, repair or modification of a hydraulic lift. Notwithstanding the foregoing, Landlord reserves the right, at
any time and from time to time, at Tenant’s expense and without releasing Tenant from any of its liability or obligations under this Master Lease, to initiate or assume control in a commercially reasonable manner in accordance with applicable
Legal Requirements over the investigation, remediation or monitoring of any soil and/or groundwater found to be impacted by Hazardous Substances; and 

(E) Tenant shall notify Landlord in writing at least seven (7) days in advance of any permanent abandonment or removal
(without implying Landlord’s consent to any abandonment or removal, which consent must be requested in writing by Tenant and shall be given or withheld in Landlord’s sole discretion), and/or replacement of Environmental Equipment. 

(vi) Storage Tanks. Tenant shall operate above-ground or below-ground storage tanks, including with respect to temporary
storage of waste oils and solvents for periodic disposal as provided in Schedules 20.6(c)(iii) and (c)(iv), and in the Environmental Ordinary Course of Business. 

  
 Schedule 20.6 – 3

 (vii) Compliance, Investigation and Reports. 

(A) Tenant shall strictly comply with all applicable Legal Requirements pertaining to the permitted use and the protection of
human health and the environment, including making all filings and reports to applicable governmental agencies necessary to so comply, including hazardous waste manifests (providing copies of all such manifests, notices, demands, claims and
correspondence received from or sent to any governmental agency to the manager of the Sears Store or Kmart Store, as the case may be, at the respective Sears Store or Kmart Store address, and to Landlord), and performing any investigation,
remediation, clean up or work required to comply with Legal Requirements and Environmental Laws and paying (and indemnifying Landlord against) any fines, penalties, damages, costs, liabilities and expenses arising out of Tenant’s failure to
comply with Legal Requirements and Environmental Laws. 
 (B) Without limiting the foregoing, upon receiving notice thereof,
Tenant shall promptly: (x) notify Landlord in writing and provide copies of all documents regarding all actual or alleged violations of any Environmental Law that involve a release or threatened release of Hazardous Substance relating to
Tenant’s activities or otherwise, including copies of any environmental testing, cleanup, monitoring, or closure reports or documents, regulatory correspondence or other written materials whatsoever (including all updates, supplements and
revisions) relating to their discovery, investigation, remediation and/or monitoring of any soils and/or groundwater impacted with Hazardous Materials on or about the Demised Premises, in connection with Tenant’s operation, investigation,
maintenance, abandonment, removal, repair and replacement of Environmental Equipment (collectively, “Remediation Materials”); and (y) at its sole expense and using a consultant and methods approved in advance by Landlord
and in full compliance with all applicable Environmental Laws, investigate and correct all such violations, remove all such Hazardous Substances and repair all damage to the Demised Premises, the Properties and/or the Shopping Center (if
applicable). 
 (viii) Removal of Hazardous Substances. Upon the expiration or earlier termination of this Master
Lease, Tenant shall cause, at its sole cost and expense, all containerized or accumulated Hazardous Substances, including Hazardous Substances accumulated in any tanks or secondary containment systems, to be removed from the Demised Premises and
transported off-site for use, storage or disposal in accordance with all Environmental Laws. 

(ix) Inspection by Landlord. Tenant acknowledges and agrees that, at any time and from time to time during the Term,
Landlord and its representatives may enter the Demised Premises to install, maintain or use any environmental monitoring or testing equipment or to perform any environmental monitoring, testing, auditing or inspection activity with respect to any
activities on, 

  
 Schedule 20.6 – 4

 
at or in the vicinity of the Demised Premises, and to review, inspect and copy all Remediation Materials. In addition, Landlord has the right, at any time and from time to time, to inspect or
audit the Demised Premises with respect to environmental matters and to observe and audit Tenant’s compliance with Environmental Laws and the provisions of Article XX and other provisions of this Master Lease. During such inspection
or audit, Tenant agrees to provide all relevant documents and information reasonably requested by Landlord and to provide to Landlord the opportunity to interview Tenant’s employees relating to environmental matters. This right of audit and
inspection does not constitute a duty on Landlord’s part to so inspect and in no event relieves Tenant of any obligations under this Master Lease or under any Legal Requirements. All activities by Landlord under this
Schedule 20.6(c)(ix) shall be subject to the provisions with respect to notice and terms of inspection, Landlord’s responsibility and insurance and all other matters as provided in Section 20.5 of this Master
Lease. Landlord shall maintain (or cause its contractors and experts to maintain) customary insurance coverage with customary limits with respect to all Inspections naming Tenant as additional insured. 

(x) Landlord’s Right to Perform. 

(A) If Tenant fails to perform any of its obligations under this Schedule 20.6 in a timely manner, without
limiting any other Landlord’s rights or remedies under this Master Lease, upon reasonable notice to Tenant, Landlord may (but shall have no obligation to) perform such obligation at Tenant’s sole risk and expense. 

(B) Without limiting the foregoing, in the event Tenant has not fully complied with all obligations to deliver any or all of
the Demised Premises free of Hazardous Substances or has failed to remove any Environmental Equipment or has failed to otherwise complete any required remediation activities or other obligations pursuant to Article XX with respect to the
surrender of the Demised Premises on the expiration or earlier termination of this Master Lease, subject to the provisions of Schedule 20.3 to the Side Letter and the provisions of Section 20.3(b), Landlord, its successors,
assigns and designees (collectively, “Performing Parties”) may accept such delivery and surrender of the Demised Premises with such failure and nonperformance by Tenant and undertake any or all of Tenant’s such
obligations with respect to any or all of the Demised Premises in accordance with the requirements of Environmental Law at Tenant’s sole cost and expense, without releasing Tenant from its liabilities or obligations under this Master Lease and
without waiving any rights or remedies against Tenant. In such event, in addition to all other Landlord’s rights and remedies, Tenant shall remain liable for all costs, expenses, fees, charges, fines, penalties and damages as a result of
Tenant’s such failure to deliver and surrender the Demised Premises in the condition required, and shall pay or reimburse the same to Landlord or any other Performing Parties, plus five percent (5%) of the amount thereof for administrative
expenses, within ten (10) days of written demand therefor. 

  
 Schedule 20.6 – 5

 (xi) Tenant to Maintain Records. Tenant shall retain and maintain copies
of all removal, transportation and disposal manifests, notices, correspondence, spill or release reports, remediation requests and action plans, environmental reports, tests and inspections, notices of violations, and all other Remediation Materials
referred to in this Schedule 20.6 for a period of not less than three (3) years (or such longer period as may be required by applicable Environmental Law) from and after the period to which they relate. 

(xii) Environmental Indemnity. In addition to all other Tenant indemnities hereunder, Tenant shall indemnify, defend
(with counsel acceptable to Landlord), and hold harmless Landlord and all Indemnified Parties from and against any and all Losses (including reasonable attorneys’ fees and expenses, including all of the same incurred in the enforcement of this
indemnity, and reasonable consultants’ fees) which are caused by, relate to or arise in connection with: (A) any breach of Article XX; (B) any violation by Tenant or Tenant Group of any Environmental Law with respect to
the Demised Premises, the Properties and/or the Shopping Center (if applicable); (C) any act or omission of Tenant or Tenant Group as to any environmental matter or condition arising during the Term resulting in any violation of Environmental
Law; and (D) that portion of an environmental condition on or about the Demised Premises, the Properties and/or the Shopping Center (if applicable) caused by, contributed to, or aggravated or exacerbated by Tenant. Tenant’s obligation
under this Schedule 20.6(c)(xii) shall survive the expiration or earlier termination of this Master Lease. 

(xiii) Confidentiality. All environmental testing and mitigation results and all documents or reports generated in
connection with the Tenant’s operation, investigation, maintenance, abandonment, removal, repair or replacement of any Environmental Equipment or Hazardous Substances shall be kept strictly confidential unless disclosure is required by law (in
which event, prior written notice of such disclosure, together with a copy of the testing, mitigation documents or reports that will be disclosed must be given to Landlord at least thirty (30) days prior to the disclosure). 

(xiv) Survival. The provisions of this Schedule 20.6 shall survive the expiration or sooner
termination of this Master Lease with respect to any or all of the Demised Premises. 

  
 Schedule 20.6 – 6EX-10.4

 Exhibit 10.4 

Execution Version 
 LOAN
AGREEMENT 
 Dated as of July 7, 2015 

by and among 
 Seritage SRC
Finance LLC and 
 Seritage KMT Finance LLC, 

as Borrower, 
 Seritage GS
Holdings LLC, 
 Seritage SPS Holdings LLC and 

Seritage MS Holdings LLC 

as JV Pledgor 
 and 

JPMorgan Chase Bank, National Association and 

H/2 SO III Funding I LLC 

as Lender 

 TABLE OF CONTENTS 

 

							
	 	 	 	  	Page	 
	 ARTICLE 1 GENERAL TERMS
	  			
			
	 Section 1.1
	 	 The Loan; Term.
	  	 	53	  
	 Section 1.2
	 	 Interest and Principal.
	  	 	55	  
	 Section 1.3
	 	 Method and Place of Payment
	  	 	56	  
	 Section 1.4
	 	 Taxes; Regulatory Change.
	  	 	57	  
	 Section 1.5
	 	 Interest Rate Cap Agreements.
	  	 	58	  
	 Section 1.6
	 	 Release
	  	 	59	  
	 Section 1.7
	 	 Advances.
	  	 	59	  
		
	 ARTICLE 2 VOLUNTARY PREPAYMENT AND ASSUMPTION
	  			
			
	 Section 2.1
	 	 Voluntary Prepayment.
	  	 	61	  
	 Section 2.2
	 	 Property Releases.
	  	 	62	  
	 Section 2.3
	 	 JV Releases.
	  	 	65	  
	 Section 2.4
	 	 Transfers of Equity Interests in Borrower.
	  	 	68	  
		
	 ARTICLE 3 ACCOUNTS
	  			
			
	 Section 3.1
	 	 Cash Management Account.
	  	 	70	  
	 Section 3.2
	 	 Distributions from Cash Management Account.
	  	 	71	  
	 Section 3.3
	 	 Loss Proceeds Account.
	  	 	73	  
	 Section 3.4
	 	 Basic Carrying Costs Escrow Account.
	  	 	74	  
	 Section 3.5
	 	 TI/LC Reserve Account.
	  	 	75	  
	 Section 3.6
	 	 Capital Expenditure Reserve Account.
	  	 	76	  
	 Section 3.7
	 	 Deferred Maintenance and Environmental Escrow Account.
	  	 	76	  
	 Section 3.8
	 	 Cash Flow Sweep Reserve Account.
	  	 	77	  
	 Section 3.9
	 	 Unfunded Obligations Account.
	  	 	78	  
	 Section 3.10
	 	 Cash Flow Sweep Cure Reserve Account.
	  	 	79	  
	 Section 3.11
	 	 Redevelopment Project Reserve Account.
	  	 	79	  
	 Section 3.12
	 	 Account Collateral.
	  	 	80	  
	 Section 3.13
	 	 Bankruptcy
	  	 	81	  
		
	 ARTICLE 4 REPRESENTATIONS
	  			
			
	 Section 4.1
	 	 Organization.
	  	 	82	  
	 Section 4.2
	 	 Authorization
	  	 	82	  
	 Section 4.3
	 	 No Conflicts
	  	 	82	  
	 Section 4.4
	 	 Consents
	  	 	82	  
	 Section 4.5
	 	 Enforceable Obligations
	  	 	82	  
	 Section 4.6
	 	 No Default
	  	 	83	  
	 Section 4.7
	 	 Payment of Taxes
	  	 	83	  
	 Section 4.8
	 	 Compliance with Law
	  	 	83	  
	 Section 4.9
	 	 ERISA.
	  	 	83	  
	 Section 4.10
	 	 Investment Company Act
	  	 	84	  
	 Section 4.11
	 	 No Bankruptcy Filing
	  	 	84	  
	 Section 4.12
	 	 Other Debt
	  	 	84	  

  
 i 

 TABLE OF CONTENTS 

(continued) 
  

							
	 	 	 	  	Page	 
	 Section 4.13
	 	 Litigation
	  	 	84	  
	 Section 4.14
	 	 Leases; Material Agreements.
	  	 	84	  
	 Section 4.15
	 	 Full and Accurate Disclosure
	  	 	86	  
	 Section 4.16
	 	 Financial Condition and Projections
	  	 	86	  
	 Section 4.17
	 	 Single-Purpose Requirements.
	  	 	86	  
	 Section 4.18
	 	 Use of Loan Proceeds
	  	 	87	  
	 Section 4.19
	 	 Not Foreign Person
	  	 	87	  
	 Section 4.20
	 	 Labor Matters
	  	 	87	  
	 Section 4.21
	 	 Title
	  	 	87	  
	 Section 4.22
	 	 No Encroachments
	  	 	88	  
	 Section 4.23
	 	 Physical Condition
	  	 	88	  
	 Section 4.24
	 	 Fraudulent Conveyance
	  	 	88	  
	 Section 4.25
	 	 Management
	  	 	88	  
	 Section 4.26
	 	 Condemnation
	  	 	89	  
	 Section 4.27
	 	 Utilities and Public Access
	  	 	89	  
	 Section 4.28
	 	 Environmental Matters
	  	 	89	  
	 Section 4.29
	 	 Assessments
	  	 	90	  
	 Section 4.30
	 	 No Joint Assessment
	  	 	90	  
	 Section 4.31
	 	 Separate Lots
	  	 	90	  
	 Section 4.32
	 	 Permits; Certificate of Occupancy
	  	 	90	  
	 Section 4.33
	 	 Flood Zone
	  	 	90	  
	 Section 4.34
	 	 Security Deposits
	  	 	90	  
	 Section 4.35
	 	 Acquisition Documents
	  	 	90	  
	 Section 4.36
	 	 Insurance
	  	 	90	  
	 Section 4.37
	 	 No Dealings
	  	 	91	  
	 Section 4.38
	 	 Estoppel Certificates; JV Side Letters
	  	 	91	  
	 Section 4.39
	 	 Federal Trade Embargos
	  	 	91	  
	 Section 4.40
	 	 Ground Leased Parcel
	  	 	91	  
	 Section 4.41
	 	 Survival
	  	 	92	  
		
	 ARTICLE 5 AFFIRMATIVE COVENANTS
	  			
			
	 Section 5.1
	 	 Existence; Licenses
	  	 	93	  
	 Section 5.2
	 	 Maintenance of Property.
	  	 	93	  
	 Section 5.3
	 	 Compliance with Legal Requirements
	  	 	95	  
	 Section 5.4
	 	 Impositions and Other Claims
	  	 	95	  
	 Section 5.5
	 	 Inspection
	  	 	96	  
	 Section 5.6
	 	 Cooperate in Legal Proceedings
	  	 	96	  
	 Section 5.7
	 	 Leases.
	  	 	96	  
	 Section 5.8
	 	 Plan Assets, etc.
	  	 	99	  
	 Section 5.9
	 	 Further Assurances
	  	 	99	  
	 Section 5.10
	 	 Management of Collateral.
	  	 	100	  
	 Section 5.11
	 	 Notice of Material Event
	  	 	101	  
	 Section 5.12
	 	 Annual Financial Statements; Format for Statements
	  	 	101	  

  
 ii 

 TABLE OF CONTENTS 

(continued) 
  

							
	 	 	 	  	Page	 
	 Section 5.13
	 	 Quarterly Financial Statements
	  	 	102	  
	 Section 5.14
	 	 Monthly Financial Statements; Other Reporting.
	  	 	103	  
	 Section 5.15
	 	 Insurance.
	  	 	103	  
	 Section 5.16
	 	 Casualty and Condemnation.
	  	 	108	  
	 Section 5.17
	 	 Annual Budget
	  	 	111	  
	 Section 5.18
	 	 Venture Capital Operating Companies; Nonbinding Consultation
	  	 	111	  
	 Section 5.19
	 	 Compliance with Encumbrances and Material Agreements.
	  	 	112	  
	 Section 5.20
	 	 Prohibited Persons
	  	 	112	  
	 Section 5.21
	 	 Business Plans
	  	 	113	  
	 Section 5.22
	 	 Redevelopment Plans.
	  	 	113	  
	 Section 5.23
	 	 Recapture Plans
	  	 	119	  
	 Section 5.24
	 	 Joint Ventures.
	  	 	119	  
		
	 ARTICLE 6 NEGATIVE COVENANTS
	  			
			
	 Section 6.1
	 	 Liens on the Collateral
	  	 	120	  
	 Section 6.2
	 	 Ownership
	  	 	120	  
	 Section 6.3
	 	 Transfer
	  	 	120	  
	 Section 6.4
	 	 Debt
	  	 	120	  
	 Section 6.5
	 	 Dissolution; Merger or Consolidation
	  	 	120	  
	 Section 6.6
	 	 Change in Business
	  	 	120	  
	 Section 6.7
	 	 Debt Cancellation
	  	 	120	  
	 Section 6.8
	 	 Affiliate Transactions
	  	 	121	  
	 Section 6.9
	 	 Misapplication of Funds
	  	 	121	  
	 Section 6.10
	 	 Jurisdiction of Formation; Name
	  	 	121	  
	 Section 6.11
	 	 Modifications and Waivers
	  	 	121	  
	 Section 6.12
	 	 ERISA.
	  	 	122	  
	 Section 6.13
	 	 Alterations and Expansions
	  	 	122	  
	 Section 6.14
	 	 Advances and Investments
	  	 	122	  
	 Section 6.15
	 	 Single-Purpose Entity
	  	 	122	  
	 Section 6.16
	 	 Zoning and Uses
	  	 	123	  
	 Section 6.17
	 	 Waste
	  	 	123	  
	 Section 6.18
	 	 Ground Lease.
	  	 	123	  
		
	 ARTICLE 7 DEFAULTS
	  			
			
	 Section 7.1
	 	 Event of Default
	  	 	124	  
	 Section 7.2
	 	 Remedies.
	  	 	127	  
	 Section 7.3
	 	 Application of Payments after an Event of Default
	  	 	129	  
		
	 ARTICLE 8 CONDITIONS PRECEDENT
	  			
			
	 Section 8.1
	 	 Conditions Precedent to Loan Closing
	  	 	129	  
		
	 ARTICLE 9 MISCELLANEOUS
	  			
			
	 Section 9.1
	 	 Successors
	  	 	132	  

  
 iii 

 TABLE OF CONTENTS 

(continued) 
  

							
	 	 	 	  	Page	 
	 Section 9.2
	 	 GOVERNING LAW.
	  	 	133	  
	 Section 9.3
	 	 Modification, Waiver in Writing, Approval of Lender
	  	 	133	  
	 Section 9.4
	 	 Notices.
	  	 	133	  
	 Section 9.5
	 	 TRIAL BY JURY
	  	 	136	  
	 Section 9.6
	 	 Headings
	  	 	136	  
	 Section 9.7
	 	 Assignment.
	  	 	136	  
	 Section 9.8
	 	 Severability
	  	 	138	  
	 Section 9.9
	 	 Preferences; Waiver of Marshalling of Assets
	  	 	138	  
	 Section 9.10
	 	 Remedies of Borrower
	  	 	138	  
	 Section 9.11
	 	 Offsets, Counterclaims and Defenses
	  	 	139	  
	 Section 9.12
	 	 No Joint Venture
	  	 	139	  
	 Section 9.13
	 	 Conflict; Construction of Documents
	  	 	139	  
	 Section 9.14
	 	 Brokers and Financial Advisors
	  	 	139	  
	 Section 9.15
	 	 Counterparts
	  	 	139	  
	 Section 9.16
	 	 Estoppel Certificates.
	  	 	139	  
	 Section 9.17
	 	 General Indemnity; Payment of Expenses.
	  	 	140	  
	 Section 9.18
	 	 No Third-Party Beneficiaries
	  	 	142	  
	 Section 9.19
	 	 Recourse.
	  	 	143	  
	 Section 9.20
	 	 Right of Set-Off
	  	 	145	  
	 Section 9.21
	 	 Exculpation of Lender
	  	 	145	  
	 Section 9.22
	 	 Servicer
	  	 	146	  
	 Section 9.23
	 	 No Fiduciary Duty.
	  	 	146	  
	 Section 9.24
	 	 Borrower Information.
	  	 	147	  
	 Section 9.25
	 	 PATRIOT Act Records
	  	 	149	  
	 Section 9.26
	 	 Prior Agreements
	  	 	149	  
	 Section 9.27
	 	 Publicity
	  	 	149	  
	 Section 9.28
	 	 Delay Not a Waiver
	  	 	149	  
	 Section 9.29
	 	 Schedules and Exhibits Incorporated
	  	 	150	  
	 Section 9.30
	 	 New Borrowers
	  	 	150	  
	 Section 9.31
	 	 Joint and Several Liability; Waivers
	  	 	151	  

  
 iv 

			
	Exhibits
		
	A		Organizational Chart
	B		Form of Tenant Notice
	C		Form of Funding Request
	D		Form of Permitted JV Equity Pledge Agreement
	E		Form of Borrower Reporting Package
	F		Form of MRT Amendment
	G		Form of Lender SNDA
	
	Schedules
		
	A-1		Properties as of Loan Closing
	A-2		Properties as of Approved Separation Transaction Closing
	A-3		Additional Properties
	B		Allocated Loan Amounts
	C		Exception Report
	D-1		Deferred Maintenance Conditions
	D-2		Environmental Conditions
	E-1		Unfunded Obligations
	E-2		Existing Redevelopment Funding Conditions
	F		Rent Roll
	G		Material Agreements
	H		Business Plan Requirements
	I		Ground Leases
	J-1		Prohibited Transferees
	J-2		Proprietary Information Restricted Persons
	K		Illustration of SHLD EBITDAR Calculation
	L-1		Developer REA Estoppels
	L-2		Major Anchor REA Estoppels
	M		Designated Property Redevelopment Plans
	N		Recapture Plans
	O		Approved Property Managers
	P		Specified Leases
	Q		Confidentiality Legend
	R		Title Insurance Pools
	S		MRT Jurisdictions

  
 v 

 LOAN AGREEMENT 

This Loan Agreement (this “Agreement”) is dated July 7, 2015 and is by and among JPMorgan Chase Bank, National
Association, a national banking association, as holder of the A-1 Note (as defined herein) (together with its successors and assigns, including any lawful holder of any A-1 Note, individually or collectively, as the context may require, the
“Initial Advance Lender”), JPMorgan Chase Bank, National Association, a national banking association, as holder of the A-2-1 Note (as defined herein) (the “JPM Future Advance Lender”) and H/2 SO III Funding I LLC, a
Delaware limited liability company, as holder of the A-2-2 Note (the “H/2 Future Advance Lender”, and together with the JPM Future Advance Lender and their respective successors and assigns, including any lawful holder of any A-2
Note, individually or collectively, as the context may require, the “Future Advance Lender”; the Future Advance Lender, together with the Initial Advance Lender, together with each of their respective successors and assigns,
including any lawful holder of any portion of the Indebtedness (as defined herein), individually or collectively, as the context may require, “Lender”), Seritage SRC Finance LLC, a Delaware limited liability company, and Seritage
KMT Finance LLC, a Delaware limited liability company, as borrower (individually or collectively, as the context may require, “Borrower”) and Seritage GS Holdings LLC, a Delaware limited liability company, Seritage SPS Holdings LLC,
a Delaware limited liability company, and Seritage MS Holdings LLC, a Delaware limited liability company as pledgor (individually or collectively, as the context may require, “JV Pledgor”). 

RECITALS 
 Borrower
desires to obtain from Lender the Loan (as defined herein) in connection with the financing of the acquisition of the Properties (as defined herein). 

Lender is willing to make the Loan on the terms and subject to the conditions set forth in this Agreement if Borrower joins in the execution
and delivery of this Agreement, the Notes and the other Loan Documents. 
 In consideration of the agreements, provisions and covenants
contained herein and in the other Loan Documents, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Lender and Borrower agree as follows: 

DEFINITIONS 
 (a) When
used in this Agreement, the following capitalized terms have the following meanings: 
 “A-1 Note(s)”
means that certain promissory note, dated as of the Closing Date, made by Borrower to the order of Initial Advance Lender, designated the “A-1 Note” evidencing the Initial Advance, which note, together with the A-2 Notes, evidence the
Loan, as each such note may be replaced by multiple Notes or divided into multiple Note Components in accordance with Section 1.1(c) and as otherwise assigned (in whole or in part), as the same may be amended, restated, replaced,
supplemented or otherwise modified from time to time in accordance with this Agreement. 

 “A-2 Note(s)” means (i) that certain promissory note, dated as of the
Closing Date, made by Borrower to the order of the JPM Future Advance Lender, designated the “A-2-1 Note” in the maximum principal amount of up to $50,000,000 and (ii) that certain promissory note, dated as of the Closing Date, made
by Borrower to the order of H/2 Future Advance Lender, designated the “A-2-2 Note” in the maximum principal amount of up to $50,000,000, which notes, together with the A-1 Note, evidence the Loan, as each such note may be replaced by
multiple Notes or divided into multiple Note Components in accordance with the Loan Documents and as otherwise assigned (in whole or in part), as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time in
accordance with this Agreement. 
 “Acceptable Counterparty” means any counterparty to an Interest Rate Cap Agreement (or
the guarantor of such counterparty’s obligations pursuant to a guaranty acceptable to Lender and the Rating Agencies) that has and maintains (a) either (i) a long-term unsecured debt rating or
counterparty rating of A- or higher from S&P, or (ii) a short-term unsecured debt rating of A-2 or higher from S&P,
and (b) a long-term unsecured debt rating of A3 or higher from Moody’s. 

“Acceptable Mortgage Modification Endorsement” has the meaning set forth in Section 5.22(j). 

“Account Collateral” means, collectively, the Collateral Accounts and all sums at any time held, deposited or invested
therein, together with any interest and other earnings thereon, and all securities and investment property credited thereto and all proceeds thereof (including proceeds of sales and other dispositions), whether accounts, general intangibles, chattel
paper, deposit accounts, instruments, documents or securities. 
 “Additional Nonconsolidation Opinion” shall mean a
nonconsolidation opinion letter delivered in connection with the Loan subsequent to the Closing Date reasonably satisfactory in form and substance to Lender and, if a Securitization has occurred, satisfactory in form and substance to the Rating
Agencies, delivered by Mayer Brown LLP or other counsel reasonably satisfactory to Lender and, if a Securitization has occurred, satisfactory to the Rating Agencies. 

“Additional Properties” shall mean the Properties purchased by Borrower in connection with the Approved Separation
Transaction Closing as set forth on Schedule A-3. 
 “Affiliate” shall mean, as to any Person, any other Person that
is, directly or indirectly, in Control of, is Controlled by or is under common ownership or Control with such Person. 
 “Affiliate
Lease” means any Lease between Borrower and any Broad Affiliate of Borrower (which shall include, for avoidance of doubt, the Lands’ End Master Lease and the Sears Hometown License Agreement). 

“Agreement” means this Loan Agreement, as the same may be amended, restated, replaced, supplemented or otherwise modified
from time to time in accordance with this Agreement. 

  
 2 

 “Allocated Loan Amount” means, with respect to each Property, the portion of the
Loan Amount allocated to such Property as set forth on Schedule B as of the Loan Closing and adjusted as of the Approved Separation Transaction Closing, as such amount may be increased and/or supplemented by the portion of the Future Advance
Amount advanced by the Future Advance Lender in respect of such Property in accordance with Section 1.7. 

“Alteration” means any demolition, alteration, installation, improvement or expansion of or to any of the Properties or any
portion thereof. 
 “Annual Budget” means a capital and operating expenditure budget for each Property and the Borrower
(including allocable general and administrative expenses of Guarantor) for a Fiscal Year, prepared by Borrower that specifies amounts sufficient to operate and maintain the Properties consistent with the standards required by this Agreement. For the
avoidance of doubt, the Annual Budget shall not include expenditures in respect of Redevelopment Projects. 
 “Annual Test
Period” means each one-year period commencing on the date that is 90 days following the Closing Date and each one-year anniversary of such date. 

“Applicable JV” means, as to any Seritage JV Member, the GGP JV, the Macerich JV, the Permitted JV or the Simon JV, as
applicable to such Seritage JV Member. 
 “Appraisal” means, with respect to each Property, an as-is appraisal of such Property that is prepared by a member of the Appraisal Institute selected by Lender, meets the minimum appraisal standards for national banks promulgated by the Comptroller of the Currency
pursuant to Title XI of the Financial Institutions Reform, Recovery, and Enforcement Act of 1989, as amended (FIRREA) and complies with the Uniform Standards of Professional Appraisal Practice (USPAP). 

“Approved Annual Budget” means, with respect to any Fiscal Year, the most recent Annual Budget prepared by Borrower and
delivered to Lender in accordance with Section 5.17, and, to the extent required by Section 5.17, is approved by Lender. 

“Approved Designated Property Redevelopment Plans” has the meaning set forth in Section 5.22(h). 

“Approved Management Agreement” means that certain Management and Leasing Agreement, dated as of the Closing Date, between
Borrower and Seritage Management LLC, a Delaware limited liability company, and any other management agreement or agreements with one or more Approved Property Managers on terms reasonably acceptable to Lender and with respect to which the Rating
Condition is satisfied, in each case, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time in accordance with this Agreement. 

“Approved Property Manager” means: 

(i) (a) SHMC and (b) any Person listed on Schedule O hereto; 

  
 3 

 (ii) Guarantor or a Subsidiary thereof, provided the designated manager either (a) satisfies
the Independent Management Criteria or (b) subcontracts with respect to all or a portion of its duties with an Approved Property Manager (satisfying the criteria in clause (i) or clause (iii) of this definition) under an Approved
Management Agreement on terms reasonably acceptable to Lender; or 
 (iii) any other management company that is not a Broad Affiliate of
Borrower, Guarantor or SHLD (other than such Persons permitted under clause (i) or clause (ii) above) and is otherwise reasonably acceptable to Lender and with respect to which the Rating Condition is satisfied, in each case,
unless and until Lender requests the termination of that management company pursuant to Section 5.10(d). 
 “Approved
Redevelopment Costs” means the Redevelopment Costs incurred by Borrower in accordance with an Approved Redevelopment Plan and Budget. 

“Approved Redevelopment Plan and Budget” means a Redevelopment Plan and Budget prepared by Borrower with respect to all or
any portion of a Property that satisfies the applicable requirements set forth Section 5.22 and, to the extent required by Section 5.22, is approved by Lender. 

“Approved Redevelopment Pro Rata Share” means, with respect to any Redevelopment Project, the pro rata share of Approved
Redevelopment Costs to be funded with the proceeds of draws on the Future Advance Amount as specified in the applicable Approved Redevelopment Plan and Budget. For avoidance of doubt, the Approved Redevelopment Pro Rata Share with respect to a
Redevelopment Project may be 100%. 
 “Approved Separation Transaction” means the acquisition of Mezzanine Borrower,
Borrower and the other assets (including the Additional Properties) contemplated thereby by the Guarantor pursuant to the SHLD PSA for a purchase price not less than the Minimum Purchase Price, funded by a combination of proceeds of the Loan, the
Mezzanine Loan and the proceeds from a subscription-rights offering to SHLD shareholders that will raise not less than the Minimum Cash Equity (as defined below) on such terms as are approved by Lender and set
forth in the Form S-11 filed with the Securities and Exchange Commission. 
 “Approved
Separation Transaction Closing” means the closing of the Approved Separation Transaction in accordance with the SHLD PSA. 

“Assignment” has the meaning set forth in Section 9.7(b). 

“Assignment of Interest Rate Cap Agreement” means each collateral assignment of an interest rate cap agreement executed by
Borrower and an Acceptable Counterparty in accordance herewith, each of which must be in substantially the form executed by Borrower and the initial Acceptable Counterparty on the Closing Date, mutatis mutandis, as the same may be amended, restated,
replaced, supplemented or otherwise modified from time to time in accordance with this Agreement. 
 “Bankruptcy Action”
shall mean with respect to any Person (a) such Person filing a voluntary petition under the Bankruptcy Code, or any other Federal, state, local or foreign 

  
 4 

 
bankruptcy or insolvency law; (b) the filing of an involuntary petition against such Person under the Bankruptcy Code, or any other Federal, state, local or foreign bankruptcy or insolvency
law, or soliciting or causing to be solicited petitioning creditors for any involuntary petition against such Person; (c) such Person filing an answer consenting to or otherwise acquiescing in or joining in any involuntary petition filed
against it, by any other Person under the Bankruptcy Code, or any other Federal, state, local or foreign bankruptcy or insolvency law; (d) such Person consenting to or acquiescing in or joining in an application for the appointment of a
custodian, receiver, trustee, or examiner for such Person or any portion of any Individual Property; (e) such Person making an assignment for the benefit of creditors, or admitting, in writing or in any legal proceeding, its insolvency or
inability to pay its debts as they become due; or (f) such Person shall take any action in furtherance of any of the foregoing. 

“Bankruptcy Code” means Title 11 of the United States Code, 11 U.S.C. §101, et seq., as the same may be amended from
time to time, and any successor statute or statutes and all rules and regulations from time to time promulgated thereunder, and any comparable foreign laws relating to bankruptcy, insolvency or creditors’ rights or any other Federal, state,
local or foreign bankruptcy or insolvency law. 
 “Basic Carrying Costs Escrow Account” has the meaning set forth in
Section 3.4(a). 
 “Borrower” has the meaning set forth in the first paragraph of this Agreement. 

“Borrower Reporting Package” means the reports required to be delivered by Borrower pursuant to this Agreement in the forms
attached hereto as Exhibit E. 
 “Borrower Representative” has the meaning set forth in Section 9.4.

 “Borrower Tax” means any U.S. Tax and any present or future tax, assessment or other charge or levy imposed by, or on
behalf of, any jurisdiction through which or from which payments due hereunder are made (or any taxing authority thereof). 
 “Broad
Affiliate” means, as to any particular person, any Person either: (i) directly or indirectly, through one or more intermediaries, Controlling, Controlled by or under common Control with such person; or (ii) owning (directly or
indirectly) 10% or more of the direct or indirect equity interests in such person. 
 “Budgeted Operating Expenses” means,
with respect to any calendar month, (i) an amount equal to the Operating Expenses budgeted for such calendar month as set forth in the then-applicable Approved Annual Budget, or (ii) such greater
amount as shall equal Borrower’s actual Operating Expenses for such month to the extent permitted by Section 5.17 or approved by Lender in accordance with Section 5.17 (including, for avoidance of doubt, the amount of
any Permitted Variances). 
 “Business Day” means any day other than (i) a Saturday and a Sunday and (ii) a day
on which federally insured depository institutions in the State of New York or the state in which the offices of Lender, its trustee, its Servicer or its Servicer’s collection account are located are authorized or obligated by law, governmental
decree or executive order to be closed. When used with respect to an Interest Determination Date, “Business Day” shall mean a day on which banks are open for dealing in foreign currency and exchange in London. 

  
 5 

 “Business Plans” has the meaning set forth in Section 5.21. 

“Capital Expenditure” means hard and soft costs incurred by Borrower with respect to replacements and capital repairs made to
the Properties (including repairs to, and replacements of, structural components, roofs, building systems, parking garages and parking lots), in each case to the extent capitalized in accordance with GAAP. 

“Capital Expenditure Reserve Account” has the meaning set forth in Section 3.6(a). 

“Cash Flow Sweep Cure Collateral” means: 

(i) with respect to a Cash Flow Sweep Trigger Event described in clause (i) of the definition thereof, cash
collateral in an amount sufficient (if it were applied, pro rata, to the then outstanding principal balance of each of the Loan and the Mezzanine Loan) to cause the Debt Yield to equal or exceed 11%; and 

(ii) with respect to a Cash Flow Sweep Trigger Event described in clause (ii) of the definition thereof, cash
collateral in an amount equal to the product of (i) two multiplied by (ii) the amount by which the Third Party In-Place NOI Threshold exceeds Third Party
In-Place NOI. 
 “Cash Flow Sweep Cure Reserve Account” has the meaning set forth
in Section 3.10(a). 
 “Cash Flow Sweep Period” means any period from (i) the occurrence of a Cash Flow
Sweep Trigger Event until (ii) the earlier to occur of (a) unless another termination or suspension date is expressly provided with respect to a particular Cash Flow Sweep Trigger Event in the definition thereof, the Payment Date following
the conclusion of the second of any two Test Periods ending in consecutive Fiscal Quarters thereafter during each of which such Cash Flow Sweep Trigger Event has been cured (without regard to the applicable Cash Flow Sweep Cure Collateral delivered
to Lender in accordance with this Agreement) and (b) payment in full of all principal and interest on the Loan and all other amounts payable under the Loan Documents in accordance with the terms and provisions of the Loan Documents;
provided that a Cash Flow Sweep Period caused by a Cash Flow Sweep Trigger Event under clause (iv)(a) of the definition thereof shall only be terminated with the consent of Lender in its sole and absolute discretion; and
provided, further that if Borrower shall fail to deliver the financial reports required under Sections 5.12, 5.13 and 5.14 to Lender as and when required hereunder, then, to the extent such failure is not
cured within five (5) Business Days of the date of notice thereof from Lender, at Lender’s election a Cash Flow Sweep Period shall be deemed to have commenced and be ongoing, unless and until all such reports are delivered and they
indicate that, in fact, no Cash Flow Sweep Period is ongoing. 
 “Cash Flow Sweep Reserve Account” has the meaning set
forth in Section 3.8(a). 

  
 6 

 “Cash Flow Sweep Trigger Event” means the occurrence of any of the following:

 (i) the Debt Yield with respect to any Test Period is less than 11.0%; provided that (a) no Cash Flow Sweep
Trigger Event shall be deemed to have occurred pursuant to this clause (i) if Borrower shall prepay the Loan and Mezzanine Borrower shall prepay the Mezzanine Loan in accordance with Section 2.1(c) of this Agreement and
Section 2.1(c) of the Mezzanine Loan Agreement, as applicable, in an amount sufficient to cause the Debt Yield to equal or exceed 11.0% or (b) such Cash Flow Sweep Trigger Event shall be suspended if, at any time, Borrower shall
have delivered to Lender the applicable Cash Flow Sweep Cure Collateral; 
 (ii) at any time after October 7, 2016, the
SHLD EBITDAR Rent Ratio with respect to any Test Period is less than 1.50x; provided that (a) no Cash Flow Sweep Trigger Event shall be deemed to have occurred pursuant to this clause (ii) if Third Party In-Place NOI as of the most recently ended Test Period exceeds the Third Party In-Place NOI Threshold or (b) such Cash Flow Sweep Trigger Event shall be suspended if
Borrower shall have delivered to Lender the applicable Cash Flow Sweep Cure Collateral within 30 days of the commencement of the applicable Cash Flow Sweep Period; 

(iii) with respect to any Annual Test Period, Third Party In-Place NOI shall not have
increased by at least $7,500,000 relative to Third Party In-Place NOI as of the start of such Annual Test Period as a result of entry into Third Party Leases during such Annual Test Period (i.e., without
giving effect to contractual rent steps of previously executed Third Party Leases) (the “Annual Third Party In-Place NOI Threshold”; and, for purposes of this clause (iii), the amount
by which Third Party In-Place NOI from entry into Third Party Leases during an Annual Test Period is less than the Annual Third Party In-Place NOI Threshold is referred
to as the “Annual Third Party In-Place NOI Deficiency” and the Annual Test Period with respect to which an Annual Third Party In-Place NOI Deficiency
exists is referred to herein as a “Deficiency Period”); provided that the applicable Cash Flow Sweep Period shall terminate on the Payment Date following the first full Fiscal Quarter in a subsequent Annual Test Period in
which Borrower has, since the conclusion of the Deficiency Period, both (a) entered into Third Party Leases that generate Third Party In-Place NOI in an amount equal to the applicable Annual Third Party In-Place NOI Deficiency and (b) without duplication of amounts included for purposes of clause (a), entered into Third Party Leases that generate Third Party In-Place NOI
in an amount equal to at least the product of (1) $1,875,000 multiplied by (2) the number of Fiscal Quarters that have elapsed since the conclusion of the applicable Deficiency Period; 

(iv) (a) a Bankruptcy Action occurs with respect to SHLD or (b) there shall occur and be continuing a payment default
(beyond any applicable notice and cure periods) by the SHLD Master Tenant under the SHLD Master Lease; provided that no Cash Flow Sweep Trigger Event shall be deemed to have occurred under this clause (iv) at any time Third Party In-Place NOI as of the most recently ended Test Period exceeds the product of (a) 1.50 multiplied by (b) annual debt service on the aggregate Principal Indebtedness and Mezzanine Loan
Principal Indebtedness as of the end of the most recent Test Period assuming an interest rate equal to the sum of (a) the One-Year Forward LIBOR Rate as of the applicable date of determination plus (b) the weighted average of the
Mortgage Loan Spread and the Mezzanine Loan Spread; 

  
 7 

 (v) Borrower shall have failed to deliver to Lender on or prior to
January 7, 2016, the Business Plans in accordance with Section 5.21; provided that the applicable Cash Flow Sweep Period shall terminate on the Payment Date following delivery by Borrower to Lender of the Business Plans in
accordance with Section 5.21; 
 (vi) at any time after October 7, 2016, Borrower shall fail to be in
substantial compliance with any material milestone in respect of implementation of the Corporate Business Plan or, as the case may be, has not implemented the Corporate Business Plan provided that the applicable Cash Flow Sweep Period shall
terminate on the Payment Date following Borrower’s satisfactory compliance with or implementation of the Corporate Business Plan, as the case may be; 

(vii) a Bankruptcy Action shall be continuing with respect to Borrower, Mezzanine Borrower or Guarantor until termination of
such Bankruptcy Action; or 
 (viii) a Mezzanine Loan Event of Default shall be continuing until termination of such
Mezzanine Loan Event of Default in accordance with the Mezzanine Loan Documents. 
 “Cash Management Account” has the
meaning set forth in Section 3.1(a). 
 “Cash Management Agreement” means that certain cash management
agreement, dated as of the Closing Date, among Borrower, Lender and the Cash Management Bank that maintains the Cash Management Account as of the Closing Date, as the same may be amended, restated, replaced, supplemented or otherwise modified from
time to time in accordance with this Agreement. 
 “Cash Management Bank” means the Eligible Institution at which the
Collateral Accounts (other than the Clearing Account) are maintained. 
 “Casualty” means a fire, explosion, flood,
collapse, earthquake or other casualty affecting all or any portion of any Property. 
 “Cause” means, with respect to an
Independent Manager, (i) acts or omissions by such Independent Manager that constitute systematic and persistent or willful disregard of such Independent Manager’s duties, (ii) such Independent Manager has been indicted or convicted
for any crime or crimes of moral turpitude or dishonesty or for any violation of any Legal Requirements, (iii) such Independent Manager no longer satisfies the requirements set forth in the definition of “Independent Manager”,
(iv) the fees charged for the services of such Independent Manager are materially in excess of the fees charged by the other providers of Independent Managers listed in the definition of “Independent Manager” or (v) any other
reason for which the prior written consent of Lender shall have been obtained. 
 “Certificates” means, collectively, any
senior and/or subordinate notes, debentures or pass-through certificates, or other evidence of indebtedness, or debt or equity securities, or any combination of the foregoing, representing a direct or
beneficial interest, in whole or in part, in the Loan. 

  
 8 

 “Clearing Account” has the meaning set forth in Section 3.1(a). 

“Clearing Account Agreement” has the meaning set forth in Section 3.1(a). 

“Clearing Account Bank” means an Eligible Institution chosen by Borrower and reasonably satisfactory to Lender. 

“Closing Date” means the date of this Agreement. 

“Code” means the Internal Revenue Code of 1986, as amended, and as it may be further amended from time to time, any successor
statutes thereto, and applicable U.S. Department of Treasury regulations issued pursuant thereto in temporary or final form. 

“Collateral” means all assets owned from time to time by Borrower including the Properties, the Revenues and all other
tangible and intangible property in respect of which Lender is granted a Lien under the Loan Documents, and all proceeds thereof; provided, however, that “Collateral” shall not include the JV Collateral. 

“Collateral Account” means each of the accounts and sub-accounts established pursuant
to Article III hereof. 
 “Completion Guaranty” means that certain completion guaranty executed by Guarantor as of the
Closing Date, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time in accordance with this Agreement. 

“Completion Guaranty Payments” means any payments made by Guarantor from time to time pursuant to the Completion Guaranty.

 “Component Spread” has the meaning set forth in Section 1.1(c). 

“Condemnation” means a taking or voluntary conveyance of all or part of any of the Properties or any interest therein or
right accruing thereto or use thereof, as the result of, or in settlement of, any condemnation or other eminent domain proceeding by any Governmental Authority. 

“Contingent Obligation” means, with respect to any Person, any obligation of such Person directly or indirectly guaranteeing
any Debt of any other Person in any manner and any contingent obligation to purchase, to provide funds for payment, to supply funds to invest in any other Person or otherwise to assure a creditor against loss. 

“Control” means the possession, directly or indirectly, of the power to direct or cause the direction of the management and
policies of a Person, whether through the ownership of voting securities, by contract or otherwise and “Controlling,” “Controlled” and “under common Control” shall have meanings correlative thereto. 

  
 9 

 “Cooperation Agreement” means that certain Mortgage Loan Cooperation Agreement,
dated as of the Closing Date, among Borrower, Lender and Guarantor, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time in accordance with this Agreement. 

“Corporate Business Plan” has the meaning specified in Section 5.21. 

“Damages” to a Person means any and all liabilities, obligations, losses, demands, damages, penalties, assessments, actions,
causes of action, judgments, proceedings, suits, claims, costs, expenses and disbursements of any kind or nature whatsoever (including reasonable attorneys’ fees and other costs of defense and/or enforcement whether or not suit is brought),
fines, charges, fees, settlement costs and disbursements actually imposed on, or actually incurred by, such party, whether based on any federal, state or foreign laws, statutes, rules or regulations (including securities and commercial laws,
statutes, rules or regulations and Environmental Laws), on common law or equitable cause or on contract or otherwise; provided, however, that “Damages” shall not include special, consequential or punitive damages, except to the extent
actually imposed upon Lender by one or more third parties. 
 “DBRS” means DBRS, Inc. or its applicable Affiliate. 

“Debt” means, with respect to any Person, without duplication: 

(i) all indebtedness of such Person to any other party (regardless of whether such indebtedness is evidenced by a written
instrument such as a note, bond or debenture), including indebtedness for borrowed money or for the deferred purchase price of property or services; 

(ii) all letters of credit issued for the account of such Person and all unreimbursed amounts drawn thereunder; 

(iii) all indebtedness secured by a Lien on any property owned by such Person (whether or not such indebtedness has been
assumed) except obligations for impositions that are not yet due and payable; 
 (iv) all Contingent Obligations of such
Person; 
 (v) all payment obligations of such Person under any interest rate protection agreement (including any interest
rate swaps, floors, collars or similar agreements) and similar agreements; and 
 (vi) any material actual or contingent
liability to any Person or Governmental Authority with respect to any employee benefit plan (within the meaning of Section 3(3) of ERISA) subject to Title IV of ERISA, Section 302 of ERISA or Section 412 of the Code. 

“Debt Yield” means, as of any date of determination, the fraction, expressed as a percentage, where (i) the numerator is
equal to In-Place NOI for the most recently ended Test Period and (ii) the denominator is equal to the sum of (a) the Principal Indebtedness plus (b) the Mezzanine Loan Principal
Indebtedness as of such date of determination. 

  
 10 

 “Debt Yield Threshold” means (i) with respect to the first Extension Term,
14.0%, and (ii) with respect to the second Extension Term, 15.0%. 
 “Default” means the occurrence of any event that,
but for the giving of notice or the passage of time, or both, would be an Event of Default. 
 “Defaulting Advance Notice”
has the meaning set forth in Section 1.7(g). 
 “Defaulting Lender” has the meaning set forth in
Section 1.7(f). 
 “Default Rate” means, with respect to any Note or Note Component, the greater of
(x) 4.0% per annum in excess of the interest rate otherwise applicable to such Note or Note Component hereunder and (y) 1% per annum in excess of the Prime Rate from time to time; provided that, if the foregoing would
result in an interest rate in excess of the maximum rate permitted by applicable law, the Default Rate shall be limited to the maximum rate permitted by applicable law. 

“Deferred Maintenance Amount” means $10,574,622. 

“Deferred Maintenance Conditions” means those items described in Schedule D-1. 

“Deferred Maintenance and Environmental Escrow Account” has the meaning set forth in Section 3.7(a). 

“Designated Net Sales Proceeds” has the meaning set forth in Section 2.2(a)(iv). 

“Designated Property” and “Designated Properties” means each of Aventura (Store #1655), Hicksville (Store
#1264) and Santa Monica (Store # 1178), individually or collectively as the context may require. 
 “Designated Redevelopment
Project” has the meaning set forth in Section 5.22(h). 
 “Diversification Date” means the date on
which the aggregate value of the Properties and JV Collateral then owned by the Borrower and the JV Pledgor constitute less than 90.0% of the consolidated assets (net of cash and cash equivalents) of Seritage REIT, in each case, determined in
accordance with GAAP. 
 “Eligible Account” means a separate and identifiable account from all other funds held by the
holding institution that is either (a) an account or accounts (or subaccounts thereof) maintained with a federal or state-chartered depository institution or trust company which complies with the
definition of Eligible Institution or (b) a segregated trust account or accounts (or subaccounts thereof) maintained with a federal or state chartered depository institution or trust company acting in its fiduciary capacity that has a
Moody’s rating of at least “Baa3” or S&P rating of at least “BBB-” and which, in the case of a state chartered depository institution or trust company, is subject to regulations
substantially similar to 12 C.F.R. §9.10(b), having in either case a combined capital and surplus of at least $50,000,000.00 and subject to supervision or examination by federal and state authority. An Eligible Account shall not be evidenced by
a certificate of deposit, passbook or other instrument. 

  
 11 

 “Eligible Institution” means either (a) a depository institution or trust
company insured by the Federal Deposit Insurance Corporation, the short-term unsecured debt obligations or commercial paper of which are rated at least “A-1+” by S&P or “P-1” by Moody’s in the case of accounts in which funds are held for thirty (30) days or less (or, in the case of letters of credit and accounts in which funds are held for more than thirty
(30) days, the long-term unsecured debt obligations of which are rated at least “A+” by S&P and “Aa3” by Moody’s), or (b) (i) Bank of America, N.A., (ii) PNC
Bank, National Association and (iii) any other depository institution or trust company approved by Lender and with respect to which the Rating Condition is satisfied; provided that, in each case, the rating by S&P and the other
Rating Agencies for the short term unsecured debt obligations or commercial paper and long term unsecured debt obligations of the same does not decrease below the ratings in effect as of the Closing Date. 

“Embargoed Person” means any Person subject to trade restrictions under any Federal Trade Embargo. 

“Engineering Report” means a structural and seismic engineering report or reports (including a “probable maximum
loss” calculation, if applicable) with respect to the Properties prepared by an independent engineer approved by Lender and delivered to Lender in connection with the Loan, and any amendments or supplements thereto delivered to Lender. 

“Environmental Claim” means any written notice, claim, proceeding, notice of proceeding, investigation, demand, abatement
order or other order or directive by any Person or Governmental Authority alleging or asserting liability with respect to Borrower or the Properties (provided that any such action solely against any Tenant shall not be considered as an action with
respect to any Property) arising out of, based on, in connection with, or resulting from (i) the actual or alleged presence, Use or Release of any Hazardous Substance, (ii) any actual or alleged violation of any Environmental Law, or
(iii) any actual or alleged injury or threat of injury to property, health or safety, natural resources or to the environment caused by Hazardous Substances. 

“Environmental Reserve Amount” means $12,034,171. 

“Environmental Conditions” means those items described in Schedule D-2. 

“Environmental Indemnity” means that certain environmental indemnity agreement executed by Borrower and Guarantor as of the
Closing Date, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time in accordance with this Agreement. 

“Environmental Laws” means any and all present and future federal, state and local laws, statutes, ordinances, orders, rules,
regulations and the like, as well as common law, any judicial or administrative orders, decrees or judgments thereunder, and any permits, approvals, licenses, registrations, filings and authorizations, in each case as now or hereafter in effect,
relating to (i) the pollution, protection or cleanup of the environment, (ii) the impact of Hazardous Substances on property, health or safety, (iii) the Use or Release of Hazardous 

  
 12 

 
Substances, (iv) occupational safety and health, industrial hygiene or the protection of human, plant or animal health or welfare or (v) the liability for or costs of other actual or
threatened danger to health or the environment. The term “Environmental Law” includes, but is not limited to, the following statutes, as amended, any successors thereto, and any regulations promulgated pursuant thereto, and any
state or local statutes, ordinances, rules, regulations and the like addressing similar issues: the Comprehensive Environmental Response, Compensation and Liability Act; the Emergency Planning and Community Right-to-Know Act; the Hazardous Materials Transportation Act; the Resource Conservation and Recovery Act (including Subtitle I relating to underground storage tanks); the Clean Water Act; the Clean Air Act;
the Toxic Substances Control Act; the Safe Drinking Water Act; the Occupational Safety and Health Act; the Federal Water Pollution Control Act; the Federal Insecticide, Fungicide and Rodenticide Act; the Endangered Species Act; the National
Environmental Policy Act; and the River and Harbors Appropriation Act. The term “Environmental Law” also includes, but is not limited to, any present and future federal state and local laws, statutes ordinances, rules, regulations
and the like, as well as common law, conditioning transfer of property upon a negative declaration or other approval of a Governmental Authority of the environmental condition of a property; or requiring notification or disclosure of Releases of
Hazardous Substances or other environmental conditions of a property to any Governmental Authority or other Person, whether or not in connection with transfer of title to or interest in property. 

“Environmental Reports” means “Phase I Environmental Site Assessments” as referred to in the ASTM Standards on
Environmental Site Assessments for Commercial Real Estate, E 1527-13 (and, if necessary, “Phase II Environmental Site Assessments”), prepared by an independent environmental auditor approved by
Lender and delivered to Lender in connection with the Loan and any amendments or supplements thereto delivered to Lender, and shall also include any other environmental reports delivered to Lender pursuant to this Agreement and the Environmental
Indemnity. 
 “Equity Interests” shall mean, with respect to any Person, (i) any share, interest, participation and
other equivalent (however denominated) of capital stock of (or other ownership, equity or profit interests in) such Person, (ii) any warrant, option or other right for the purchase or other acquisition from such Person of any of the foregoing,
(iii) any security convertible into or exchangeable for any of the foregoing, and (iv) any other ownership or profit interest in such Person (including partnership, member or trust interests therein), whether voting or nonvoting, and
whether or not such share, warrant, option, right or other interest is authorized or otherwise existing on any date. 

“ERISA” means the Employee Retirement Income Security Act of 1974, as amended from time to time, and the regulations
promulgated thereunder. 
 “ERISA Affiliate,” at any time, means each trade or business (whether or not incorporated) that
would, at the time, be treated together with Borrower as a single employer under Title IV or Section 302 of ERISA or Section 412 of the Code. 

“ESL” means, collectively, Edward S. Lampert, ESL Investments, Inc. and any of their respective affiliates, excluding SHLD
and its Subsidiaries. 

  
 13 

 “Event of Default” has the meaning set forth in Section 7.1. 

“Exception Report” means the report prepared by Borrower and attached to this Agreement as Schedule C, setting forth
any exceptions to the representations set forth in Article IV. 
 “Excess Cash Flow” means, with respect to any
Payment Date, any amounts released to Borrower in accordance with Section 3.2(a) or any amounts remaining in the Cash Management Account after funding the amounts required under Section 3.2(b)(i) through (vi). 

“Excluded Prepayment” means (i) any prepayment of the Loan (i) in connection with the application of Loss Proceeds
following a Casualty or Condemnation with respect to any Property in accordance with Section 5.16 or (ii) any prepayment of the Loan in an amount up to $205,000,000 made in connection with a release of one or more Properties in
accordance with to Section 2.2 or Section 2.3. 
 “Exculpated Person” means each Person that is an
Affiliate, equityholder, beneficiary, trustee, member, officer, director, agent, manager, independent manager, employee or partner of Borrower or Guarantor. 

“Existing Redevelopment Funding Conditions” means the conditions set forth on Schedule E-2 hereto. 

“Extension Fee” means an extension fee in an amount equal to 0.25% of the Principal Indebtedness then outstanding. 

“Extension Term” has the meaning set forth in Section 1.1(d). 

“Extension Rental Revenue Threshold” means (a) with respect to the first Extension Term, 65% of Rental Revenues and
(b) with respect to the second Extension Term, 60% of Rental Revenues. 
 “FATCA” means Sections 1471 through 1474 of
the Code, the regulations (whether proposed, temporary or final), including any subsequent amendments, and administrative guidance promulgated thereunder (or which may be promulgated in the future), and any requirements imposed by any applicable
jurisdiction pursuant to an intergovernmental agreement relating to such provisions and guidance, which such jurisdiction has entered into with the United States (including any implementing legislation enacted as a result thereof). 

“Fairholme” means Fairholme Capital Management L.L.C., any of its advisory clients from time to time, and any of its
Affiliates, including Fairholme Funds, Inc. 
 “Federal Trade Embargo” means any federal law imposing trade restrictions,
including (i) the Trading with the Enemy Act, as amended, and each of the foreign assets control regulations of the United States Treasury Department (31 CFR, Subtitle B, Chapter V, as amended), (ii) the International Emergency Economic
Powers Act (50 U.S.C. §§ 1701 et seq., as amended), (iii) any enabling legislation or executive order relating to the foregoing, (iv) Executive Order 13224, and (v) the PATRIOT Act. 

  
 14 

 “Fiscal Quarter” means each three-month
period ending on March 31, June 30, September 30 and December 31 of each year, or such other fiscal quarter of Borrower as Borrower may select from time to time with the prior consent of Lender, such consent not to be
unreasonably withheld, delayed or conditioned. 
 “Fiscal Year” means the 12-month
period ending on December 31 of each year, or such other fiscal year of Borrower as Borrower may select from time to time with the prior consent of Lender, not to be unreasonably withheld, delayed or conditioned. 

“Fitch” means Fitch, Inc. and its successors. 

“Force Majeure” means a delay due to acts of God, governmental restrictions, stays, judgments, orders, decrees, enemy
actions, civil commotion, fire, casualty, strikes, work stoppage, shortages of labor or materials or similar causes beyond the reasonable control of Borrower; provided that (1) any period of Force Majeure shall apply only to performance
of the obligations necessarily affected by such circumstance and shall continue only so long as Borrower is continuously and diligently using all reasonable efforts to minimize the effect and duration thereof; and (2) Force Majeure shall not
include the unavailability or insufficiency of funds. 
 “Funding Date” has the meaning set forth in
Section 1.7(b). 
 “Funding Default” has the meaning set forth in Section 1.7(f). 

“Funding Request” means a written request for an advance of the Future Advance Amount or release from the Redevelopment
Project Reserve Account in the form attached hereto as Exhibit C or otherwise reasonably acceptable to Lender and containing the supporting information contemplated by Section 5.22(c). 

“Future Advance” has the meaning set forth in Section 1.7(b). 

“Future Advance Amount” means a portion of the Loan in a maximum principal amount of $100,000,000 solely to fund recapture, lease-up and redevelopment of the Properties. 
 “Future Advance Availability Period”
means the period from the Closing Date to and including June 30, 2017. 
 “GAAP” means generally accepted accounting
principles in the United States of America, consistently applied. 
 “GGP” means GGP-SRC Member, LLC. 

“GGP JV” means GS Portfolio Holdings LLC. 

“GGP JV Agreement” means that certain Second Amended and Restated Limited Liability Company Agreement of GS Portfolio
Holdings LLC, dated as of June 18, 2015, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time in accordance with this Agreement. 

  
 15 

 “GGP JV Collateral” means the “Pledged Collateral” as defined in the
GGP JV Pledge and Security Agreement. 
 “GGP JV Documents” means, collectively, the GGP JV Agreement and the GGP JV Master
Lease. 
 “GGP JV Interests” means the “JV Interest” as defined in the GGP JV Pledge and Security Agreement. 

“GGP JV Master Lease” means that certain Master Lease and Sublease by and among GS Portfolio Holdings LLC as Landlord and
Sears, Roebuck and Co. as Tenant, dated as March 31, 2015, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time in accordance with this Agreement. 

“GGP JV Pledge and Security Agreement” means that certain Pledge and Security Agreement, dated as of the Closing Date, by GGP
JV Pledgor in favor of Lender, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time in accordance with this Agreement. 

“GGP JV Pledgor” means Seritage GS Holdings LLC, a Delaware limited liability company. 

“Governmental Authority” means any federal, state, county, regional, local or municipal government, any bureau, department,
agency or political subdivision thereof and any Person with jurisdiction exercising executive, legislative, judicial, regulatory or administrative functions of or pertaining to government (including any court). 

“Ground Lease” means each ground lease or ground sublease described in a Title Insurance Policy or a Mortgage as set forth on
Schedule I hereto, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time in accordance with this Agreement. 

“Ground Leased Parcel” means any portion of a Property that is ground leased to Borrower as the lessee under the Ground
Lease. 
 “Ground Rent” means rent payable by Borrower pursuant to any Ground Lease. 

“Guarantor” means, collectively, Seritage REIT and Seritage OP, on a joint and several basis. 

“Guarantor Available Funds Amount” has the meaning set forth in Section 3.8(b)(ii). 

“Guarantor Retention Amount” means, as of any date of determination, the sum of (i) $10,000,000 plus
(ii) the minimum Liquidity required to be maintained by Guarantor pursuant to the Guaranty as of such date. 

  
 16 

 “Guaranty” means that certain Guaranty, dated as of the Closing Date, executed
by Guarantor for the benefit of Lender, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time in accordance with this Agreement. 

“Hazardous Substances” means any and all substances (whether solid, liquid or gas) defined, listed, or otherwise classified
as pollutants, hazardous wastes, hazardous substances, hazardous materials, extremely hazardous wastes, toxic substances, toxic pollutants, contaminants, pollutants or words of similar meaning or regulatory effect under any present or future
Environmental Laws or the presence of which on, in or under any of the Properties is prohibited or requires investigation or remediation under Environmental Law, including petroleum and petroleum by-products,
asbestos and asbestos-containing materials, toxic mold, polychlorinated biphenyls, lead and radon, and compounds containing them (including gasoline, diesel fuel, oil and
lead-based paint), pesticides and radioactive materials, flammables and explosives and compounds containing them, but excluding those substances commonly used in the operation and maintenance of properties of
kind and nature similar to those of any of the Properties that are used at any of the Properties in compliance with all Environmental Laws and in a manner that does not result in contamination of any of the Properties or a material adverse effect on
the use, operation or value of any of the Properties. 
 “Inapplicable Taxes” means any of the following Taxes applied as
to a Lender Party or required to be deducted or withheld from a remittance or payment to a Lender Party: Taxes imposed on or measured by net income (however denominated), franchise Taxes, and branch profits Taxes, in each case, applied by reason of
such Lender Party being organized under the laws of, or having its principal office or, in the case of Lender, its applicable lending office located in, the jurisdiction which imposes such Tax (or any political subdivision thereof). 

“Increased Costs” has the meaning set forth in Section 1.4(d). 

“Indebtedness” means the Principal Indebtedness, together with interest and all other obligations and liabilities of Borrower
under the Loan Documents, including all transaction costs, Spread Maintenance Premiums and other amounts due or to become due to Lender pursuant to this Agreement, under the Notes or in accordance with any of the other Loan Documents, and all other
amounts, sums and expenses reimbursable by Borrower to Lender hereunder or pursuant to the Notes or any of the other Loan Documents. 

“Indemnified Liabilities” has the meaning set forth in Section 9.19(b). 

“Indemnified Parties” has the meaning set forth in Section 9.17. 

“Independent Manager” of any corporation or limited liability company means an individual who has prior experience as an
independent director or independent manager with at least three (3) years of employment experience and is provided by CT Corporation, Corporation Service Company, National Registered Agents, Inc., Wilmington Trust Company, Stewart Management
Company, Lord Securities Corporation or, if none of those companies is then providing professional independent directors or managers, another nationally-recognized company reasonably approved by Lender, in
each case that is not an Affiliate of Borrower and that provides professional independent directors or managers and other corporate services in the 

  
 17 

 
ordinary course of its business, and which individual is duly appointed as a member of the board of directors or board of managers of such corporation or limited liability company and is not, and
has never been, and will not while serving as Independent Manager be, any of the following: 
 (i) a member (other than an
independent, non-economic “springing” member), partner, equityholder, manager, director, officer or employee of such corporation or limited liability company or any of its equityholders or Affiliates
(other than as an independent director or manager of an Affiliate of such corporation or limited liability company that does not own a direct or indirect ownership interest in such corporation or limited liability company and that is required by a
creditor to be a single purpose bankruptcy remote entity, provided that such independent director or manager is employed by a company that routinely provides professional independent directors or managers in the ordinary course of its business);

 (ii) a creditor, supplier or service provider (including provider of professional services) to such corporation or limited
liability company or any of its equityholders or Affiliates (other than a nationally recognized company that routinely provides professional independent managers or directors and that also provides lien search and other similar services to such
corporation or limited liability company or any of its equityholders or Affiliates in the ordinary course of business); 

(iii) a family member of any such member, partner, equityholder, manager, director, officer, employee, creditor, supplier or
service provider; or 
 (iv) a Person that controls (whether directly, indirectly or otherwise) any of the entities described
in clauses (i), (ii) or (iii) above. 
 A natural person who otherwise satisfies the foregoing definition and
satisfies subparagraph (i) by reason of being the Independent Manager of a Single-Purpose Entity Affiliated with the corporation or limited liability company in question that does not own a direct or
indirect ownership interest in such corporation or limited liability company shall not be disqualified from serving as an Independent Manager of such corporation or limited liability company; provided that the fees that such natural person earns
from serving as Independent Manager of Affiliates of such the corporation or limited liability company in any given year constitute in the aggregate less than 5% of such natural person’s annual income for that year. The same natural persons may
not serve as Independent Manager of a corporation or limited liability company and, at the same time, serve as Independent Managers of an equityholder or member of such corporation or limited liability company. 

“Independent Management Criteria” means, with respect to any Person proposed to be an Approved Property Manager that is the
Guarantor or a Subsidiary thereof, that such Person shall have demonstrated to Lender’s reasonable satisfaction that it has sufficient employees, infrastructure and expertise to manage the Properties proposed to be managed by it. 

“Initial Advance” means a portion of the Loan in the principal amount of $925,000,000. 

  
 18 

 “In-Place NOI” means, with respect to
any Test Period, Net Operating Income for such Test Period, subject to the following adjustments: 
 (i) base rents under
Qualified Leases shall be adjusted to reflect annualized rents under Qualified Leases in place as of the end of such Test Period, normalized for any scheduled rent concessions; 

(ii) each of Operating Income and Operating Expenses shall be adjusted to give effect to the exercise, or election to exercise,
of any recapture by Borrower or termination by the SHLD Master Tenant, in each case by written notice pursuant to the provisions of the SHLD Master Lease and whether or not SHLD Master Tenant remains in occupancy as of the applicable time;
provided, however, that (a) if SHLD Master Tenant has exercised its termination option with respect to a Nonprofitable Property (as defined in the SHLD Master Lease) base rent and expense reimbursement actually paid by SHLD Master
Tenant on or prior to the applicable termination date shall be included in the determination of In-Place NOI and (b) base rent and expense reimbursement under a Lease entered into in accordance with this Agreement in respect of a Property as to
which a recapture or termination has been noticed under the SHLD Master Lease shall be included as if the same were a Qualified Lease, so long as neither the Tenant nor Borrower is in default thereunder or subject to bankruptcy or similar insolvency
proceeding (unless Tenant has assumed such Lease in bankruptcy), even if the Tenant thereunder has not yet assumed occupancy so long as the Lease contains no material contingency to commencement outside of buildout of leased premises and related
permits and approvals pursuant to the Lease; 
 (iii) management fees shall be adjusted to reflect a management fee equal to
the greater of the actual management fees and the Maximum Management Fee; and 
 (iv) Taxes shall be adjusted to reflect
annualized Taxes based on the most recent assessment as of the end of such Test Period, with a corresponding adjustment to reimbursements of such Taxes under Qualified Leases. 

The calculation of In-Place NOI by Lender shall be binding and conclusive absent manifest error. 

“Insurance Requirements” means, collectively, (i) all material terms of any insurance policy required pursuant to this
Agreement and (ii) all material regulations and then-current standards applicable to or affecting any of the Properties or any portion thereof or any use or condition thereof, which may, at any time, be
recommended by the board of fire underwriters, if any, having jurisdiction over any of the Properties, or any other body exercising similar functions. 

“Interest Accrual Period” means, with respect to any specified Payment Date, the period from and including the 15th day of the calendar month preceding such Payment Date to but excluding the 15th day of the calendar month containing such specified Payment Date;
provided that (i) with respect to the A-1 Note, the first Interest Accrual Period shall commence on the Closing Date and (ii) with respect to the A-2 Notes, the first Interest Accrual Period shall commence on the initial Funding
Date. 

  
 19 

 “Interest Determination Date” means, in connection with the calculation of
interest accrued for any Interest Accrual Period, two (2) Business Days preceding the first day of such Interest Accrual Period; provided that with respect to the initial funding of any A-2 Note, the initial Interest Determination Date
shall be the second Business Day preceding the initial Funding Date. 
 “Interest Rate Cap Agreement” means an interest
rate cap confirmation between an Acceptable Counterparty and Borrower, relating to the initial term of the Loan or the Extension Term, as applicable, pursuant to Section 1.5, which is in form and substance satisfactory to Lender
(together with an interest rate cap agreement and schedules relating thereto, which are consistent in form and substance with the terms set forth in such confirmation). 

“Ironshore” has the meaning set forth in Section 5.15(b). 

“IRS” means the Internal Revenue Service of the United States. 

“JV Collateral” means, individually or collectively, as the context may require, the GGP JV Collateral, the Simon JV
Collateral, the Macerich JV Collateral and any Permitted JV Collateral; provided, however, that from and after any JV Pledgor Release Event as to any Seritage JV Member, the following shall be excluded from the JV Collateral: (i) if such
Seritage JV Member is GGP JV Pledgor, the GGP JV Collateral, (ii) if such Seritage JV Member is Simon JV Pledgor, the Simon JV Collateral, (ii) if such Seritage JV Member is Macerich JV Pledgor, the Macerich JV Collateral and (iv) if
such Seritage JV Member is not covered by clause (i) through clause (iii) above, any Permitted JV Collateral under the Permitted JV Pledge and Security Agreement applicable to such Seritage JV Member. 

“JV Capital Event Proceeds” means, with respect to any JV Interests, the net cash proceeds actually received by the
applicable JV Pledgor from any refinancing, sale (including in connection with the exercise of any buy-sell or “put” rights under the applicable JV Documents), joint venture, dissolution or
application of Loss Proceeds as determined in accordance with the related JV Documents. 
 “JV Documents” means,
individually or collectively, as the context may require, the GGP JV Documents, the Simon JV Documents, the Macerich JV Documents and any Permitted JV Documents. 

“JV Interests” means, individually or collectively, as the context may require, the GGP JV Interests, the Simon JV Interests,
the Macerich JV Interests and any Permitted JV Interests. 
 “JV Pledge and Security Agreement” means, individually or
collectively, as the context may require, the GGP JV Pledge and Security Agreement, the Simon JV Pledge and Security Agreement, the Macerich JV Pledge and Security Agreement and any Permitted JV Pledge and Security Agreement. 

  
 20 

 “JV Pledgor” means, individually or collectively, as the context may require,
GGP JV Pledgor, Simon JV Pledgor, the Macerich JV Pledgor and any other Seritage JV Member that shall execute and deliver to Lender a Permitted JV Pledge and Security Agreement in accordance with this Agreement; provided, however, that as to
any Seritage JV Member, such Seritage JV Member shall be excluded for all purposes from JV Pledgor, and shall cease to constitute a JV Pledgor, from and after a JV Pledgor Release Event as to such Seritage JV Member. 

“JV Pledgor Release Event” means, as to any Seritage JV Member provided that no Event of Default is then continuing and any
applicable JV Profits are remitted to the TI/LC Reserve Account or, at Borrower’s sole election, the Redevelopment Project Reserve Account, the earlier of (i) the sale, assignment or transfer to any Person, other than an Affiliate of such
Seritage JV Member, of all of the JV Interests then held by such Seritage JV Member or (ii) the receipt by such Seritage JV Member of JV Capital Event Proceeds from (a) the sale, assignment or transfer of either (1) the Applicable JV
or (2) all of the assets of the Applicable JV or (b) the dissolution of the Applicable JV; provided that in no event shall a JV Pledgor Release Event occur if any in-kind distribution is made to JV
Pledgor in connection with the dissolution of the Applicable JV. 
 “JV Profits” means distributions of JV Capital Event
Proceeds on any JV Interests in excess of the sum of (i) if applicable, the Release Price paid by Borrower to obtain release of the related JV Release Property plus (ii) return of additional invested capital and any applicable
preferred return on such JV Interests in accordance with the applicable JV Documents. 
 “JV Release Property” has the
meaning set forth in Section 2.3(a). 
 “JV Release Threshold” means an amount equal to the difference of
(i) $147,508,833 minus (ii) any amounts required to be deducted therefrom in accordance with Section 2.1(b)(ii). 

“JV Revenues” means any revenues, payments or distributions in respect of the JV Interests, including any distributions of JV
Capital Event Proceeds. 
 “Lands’ End Master Lease” means collectively (i) that certain Master Lease Agreement
by and between Sears, Roebuck and Co. as Landlord and Lands’ End, Inc. as Tenant and (ii) that certain Master Sublease Agreement by and between Sears, Roebuck and Co. as Sublandlord and Lands’ End, Inc. as Subtenant, each entered into
as of April 4, 2014 and each effective as of February 1, 2014. 
 “Lease” means any lease, license, letting,
concession, occupancy agreement, sublease to which Borrower is a party, or other agreement (whether written or oral and whether now or hereafter in effect) under which Borrower is a lessor, sublessor, licensor or other grantor of direct possessory
rights existing as of the Closing Date or thereafter entered into by Borrower, in each case pursuant to which any Person is granted a direct possessory interest in, or right to use or occupy all or any portion of any space in any of the Properties,
and every modification or amendment thereof, and every guarantee of the performance and observance of the covenants, conditions and agreements to be performed and observed by the other party thereto; provided that for purposes of this
Agreement the Lands’ End Master Lease and the Sears Hometown License Agreement shall each be deemed to be a “Lease”. 

  
 21 

 “Leasing Commissions” means leasing commissions required to be paid by Borrower
in connection with the leasing of space to Tenants at any of the Properties pursuant to Leases entered into by Borrower in accordance herewith and payable in accordance with
third-party/arm’s-length written brokerage agreements or in accordance with the Approved Management Agreement; provided that the commissions payable pursuant
thereto are commercially reasonable based upon the then current brokerage market for property of a similar type and quality to such Property in the geographic market in which such Property is located (or, in the case of leasing commissions payable
pursuant to an Approved Management Agreement, not in excess of the leasing commissions set forth in such Approved Management Agreement). 

“Legal Requirements” means all governmental statutes, laws, rules, orders, regulations, ordinances, judgments, decrees and
injunctions of Governmental Authorities (including Environmental Laws and zoning restrictions) affecting Borrower, JV Pledgor, Guarantor, the Properties, the JV Collateral or any other Collateral or any portion thereof or the construction,
ownership, use, alteration or operation thereof, or any portion thereof (whether now or hereafter enacted and in force), and all permits, licenses and authorizations and regulations relating thereto. 

“Lender” has the meaning set forth in the first paragraph of this Agreement and in Section 9.7. 

“Lender Party” has the meaning set forth in Section 1.4(b). 

“Lender 80% Determination” means a reasonable determination by Lender that, based on a current or updated appraisal, a
broker’s price opinion or other written determination of value using a commercially reasonable valuation method reasonably satisfactory to Lender, the fair market value of the Properties securing the Loan at the time of such determination (but
excluding any value attributable to property that is not an interest in real property within the meaning of section 860G(a)(3)(A) of the Code) is at least 80% of the Loan’s adjusted issue price within the meaning of the Code. 

“LIBOR” means the rate (expressed as a percentage per annum and rounded up to the next nearest 1/1000 of 1%) for deposits in
U.S. dollars, for a one-month period, that appears on “Thomson Reuters ICE LIBOR# Rates – LIBOR01” (or the successor thereto) as of 11:00 a.m., London time, on the related Interest Determination
Date. If such rate does not appear on Thomson Reuters ICE LIBOR# Rates - LIBOR01 as of 11:00 a.m., London time, on such Interest Determination Date, LIBOR shall be the arithmetic mean of the offered rates
(expressed as a percentage per annum) for deposits in U.S. dollars for a one-month period that appear on the Thomson Reuters ICE LIBOR# Rates – LIBOR01 as of 11:00 a.m., London time, on such Interest
Determination Date, if at least two such offered rates so appear. If fewer than two such offered rates appear on the Thomson Reuters ICE LIBOR# Rates – LIBOR01 as of 11:00 a.m., London time, on such Interest Determination Date, Lender (or
Servicer, on Lender’s behalf) shall request the principal London office of any four major reference banks in the London interbank market selected by Lender to provide such bank’s offered quotation (expressed as a percentage

  
 22 

 
per annum) to prime banks in the London interbank market for deposits in U.S. dollars for a one-month period as of 11:00 a.m., London time, on such
Interest Determination Date for the amounts of not less than U.S. $1,000,000. If at least two such offered quotations are so provided, LIBOR shall be the arithmetic mean of such quotations. If fewer than two such quotations are so provided, Lender
(or Servicer, on Lender’s behalf) shall request any three major banks in New York City selected by Lender to provide such bank’s rate (expressed as a percentage per annum) for loans in U.S. dollars to leading European banks for a one-month period as of approximately 11:00 a.m., New York City time on the applicable Determination Date for amounts of not less than U.S. $1,000,000. If at least two such rates are so provided, LIBOR shall be the
arithmetic mean of such rates. LIBOR shall be determined conclusively by Lender or its agent, absent manifest error. Notwithstanding the foregoing, in no event shall LIBOR be less than zero percent (0.0%) per annum. 

“LIBOR Loan” means the Loan at such time as interest thereon accrues at a rate of interest based upon LIBOR. 

“Lien” means any mortgage, lien (statutory or other), pledge, hypothecation, assignment, preference, priority, security
interest, or any other encumbrance or charge on or affecting any Collateral or JV Collateral or any portion thereof, or any interest therein (including any conditional sale or other title retention agreement, any
sale-leaseback, any financing lease or similar transaction having substantially the same economic effect as any of the foregoing, the filing of any financing statement or similar instrument under the Uniform
Commercial Code or comparable law of any other jurisdiction, domestic or foreign, and mechanics’, materialmen’s and other similar liens and encumbrances, as well as any option to purchase, right of first refusal, right of first offer or
similar right). 
 “Liquidity” means, with respect to any Person on any date, the aggregate unrestricted cash and cash
equivalents and the amounts available for draw under committed credit facilities on such date of such Person, on a consolidated basis with its Subsidiaries (meaning, for such purposes, that such Person would have satisfied all conditions precedent
to draw under the applicable credit facility on such date other than notice); provided that (a) Liquidity shall include any cash and cash equivalents on deposit in the Cash Flow Sweep Reserve Account not earmarked for a specific use and
(b) undrawn amounts of the Future Advance Amount (to the extent not designated by Borrower to fund a specified Redevelopment Project) shall count as Liquidity at all times prior to January 7, 2017, but not thereafter. 

“Loan” means the Initial Advance by the Initial Advance Lender and the aggregate Future Advances by the Future Advance Lender
to Borrower, in an aggregate amount up to the Loan Amount. 
 “Loan Amount” means the sum of (i) the Initial Advance
plus (ii) the maximum Future Advance Amount. 
 “Loan Closing” means the closing of the funding of the Initial Advance
by the Lender to the Borrower in accordance with this Agreement. 

  
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 “Loan Documents” means this Agreement, the Notes, the Mortgages (and related
financing statements), the Environmental Indemnity, the Subordination of Property Management Agreement, the Cash Management Agreement, the Clearing Account Agreement, the Cooperation Agreement, the Guaranty, each Assignment of Interest Rate Cap
Agreement, the Operating Account Agreement, the Completion Guaranty and all other agreements, instruments, certificates and documents necessary to effectuate the granting to Lender of first-priority Liens on
the Collateral or the JV Collateral or otherwise in satisfaction of the requirements of this Agreement or the other documents listed above or hereafter entered into by Lender and Borrower in connection with the Loan, as the same may be amended,
restated, replaced, supplemented or otherwise modified from time to time in accordance with this Agreement. Notwithstanding the foregoing, from and after the date of a JV Pledgor Release Event as to the applicable Seritage JV Member, the following
shall cease to constitute Loan Documents: 
 (i) the GGP JV Pledge and Security Agreement, if executed by such Seritage JV
Member; 
 (ii) the Simon JV Pledge and Security Agreement, if executed by such Seritage JV Member; 

(iii) the Macerich JV Pledge and Security Agreement, if executed by such Seritage JV Member, 

(iv) any Permitted JV Pledge and Security Agreement, if executed by such Seritage JV Member; or 

(v) any agreement, instrument, certificate or document entered into by such Seritage JV Member in connection with any of the
documents described in clause (i) through clause (iv) above , as applicable. 
 “Lockout Period”
means the period from and including the Closing Date to but excluding the first Payment Date following the one-year anniversary of the Closing Date. 

“Long-Lived Assets” means all property capitalized in accordance with GAAP with an
expected life of not less than fifteen (15) years as initially reflected on the books and records of the owner thereof at or about the time of acquisition thereof (and, for the avoidance of doubt, with respect to property acquired by Borrower
pursuant to the SHLD PSA, the books and records of SHLD at the time of acquisition thereof by SHLD or its applicable Subsidiary). 

“Loss Proceeds” means amounts, awards or payments payable to Borrower or Lender in respect of all or any portion of any
Property in connection with a Casualty or Condemnation thereof (after the deduction therefrom and payment to Borrower and Lender, respectively, of any and all reasonable expenses incurred by Borrower and Lender in the recovery thereof, including all
attorneys’ fees and disbursements, the fees of insurance experts and adjusters and the costs incurred in any litigation or arbitration with respect to such Casualty or Condemnation). 

“Loss Proceeds Account” has the meaning set forth in Section 3.3(a). 

  
 24 

 “Loan Pro Rata Share” means, as of any date or time of determination, the
quotient (expressed as a percentage) of (i) the Principal Indebtedness as of such date or time of determination divided by (ii) the sum of the Principal Indebtedness as of such date or time of determination plus the Mezzanine
Loan Principal Indebtedness as of such date or time of determination. 
 “Macerich” means Macerich SJV LLC. 

“Macerich JV” means MS Portfolio LLC. 

“Macerich JV Agreement” means that certain Amended and Restated Limited Liability Company Agreement of MS Portfolio LLC dated
as of April 30, 2015 as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time in accordance with this Agreement. 

“Macerich JV Collateral” means the “Pledged Collateral” as defined in the Macerich JV Pledge and Security
Agreement. 
 “Macerich JV Documents” means, collectively, the Macerich JV Agreement and the Macerich JV Master Lease. 

“Macerich JV Interests” means the “JV Interest” as defined in the Macerich JV Pledge and Security Agreement. 

“Macerich JV Master Lease” means that certain Master Lease and Sublease by and among MS Portfolio LLC as Landlord and Sears,
Roebuck and Co. as Tenant, dated as April 30, 2015, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time in accordance with this Agreement. 

“Macerich JV Pledge and Security Agreement” means that certain Pledge and Security Agreement, dated as of the Closing Date,
by Macerich JV Pledgor in favor of Lender, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time in accordance with this Agreement. 

“Macerich JV Pledgor” means Seritage MS Holdings LLC, a Delaware limited liability company. 

“Major Lease” means (i) the SHLD Master Lease, (ii) the Lands’ End Master Lease, (iii) any Free-Standing
SAC Lease (as defined in the SHLD Master Lease), (iv) any Lease that, when aggregated with all other Leases at any Property with the same Tenant (or Affiliated Tenants), and assuming the exercise of all expansion rights contained in such Lease,
is expected to cover more than 35,000 rentable square feet, (v) any Lease that contains an option or preferential right to purchase all or any portion of the fee or leasehold interest, as applicable, in a Property, (vi) any Affiliate Lease
(including, without limitation, any Lease with SHLD or any Broad Affiliate of SHLD) or (vii) any Lease during the continuance of an Event of Default; provided that with respect to clause (vii), any Lease that is not otherwise a
Major Lease pursuant to clauses (i) through (vi) above shall cease to be a Major Lease at any time no Event of Default is continuing. 

  
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 “Major Redevelopment Land Use Matters” has the meaning set forth in
Section 5.22(b)(vii). 
 “Major Redevelopment Project” has the meaning set forth in
Section 5.22(a). 
 “Material Adverse Effect” means a material adverse effect upon (i) the ability of the
Properties, taken as a whole, to generate net cash flow sufficient to service the Loan and the Mezzanine Loan, (ii) the ability of Borrower or Guarantor to perform any material provision of any of the Loan Documents, (iii) the rights and
remedies of the Lender under the Mortgages and other Loan Documents, taken as a whole or (iv) the value, use or enjoyment, or the operation or occupancy, of the Properties, taken as a whole. 

“Material Agreements” means (i) the SHLD PSA, (ii) the SHLD TSA, (iii) the SHLD Master Lease Guaranty,
(iv) the Property Agreements, (v) the other agreements listed on Schedule G hereto and (vi) each contract and agreement (other than Leases) relating to any of the Properties that imposes obligations on Borrower, (a) under
which Borrower would have the obligation to pay more than $2,500,000 per annum and that cannot be terminated by Borrower without cause upon 60 days’ notice or less without payment of a termination fee or (b) that is with an Affiliate of
Borrower. 
 “Material Alteration” means any Alteration to be performed by or on behalf of Borrower at any of the
Properties that (i) is reasonably expected to result in a Property Material Adverse Effect, (ii) is reasonably expected to cost in excess of the $7,500,000, as determined by a duly licensed architect (except for Alterations in connection
with (a) Tenant Improvements under and pursuant to Leases existing as of the Closing Date (pursuant to the terms thereof in existence as of the Closing Date) or Leases thereafter entered into in accordance with this Agreement, (b) the
remediation of any Deferred Maintenance Condition or Environmental Condition in accordance with this Agreement and (c) restoration of such Property following a Material Casualty Event or a Material Condemnation Event in accordance with this
Agreement), or (iii) is reasonably expected to permit (or is reasonably likely to induce) any Tenant to terminate its Lease or abate rent. 

“Material Casualty Event” means, with respect to any Property, the occurrence of a Casualty for which the cost of repairing
such Casualty is reasonably expected to be in excess of $500,000. 
 “Material Condemnation Event” means, with respect to
any Property, the occurrence of a Condemnation for which (i) the cost of restoring such Property following such Condemnation is reasonably expected to be in excess of $500,000 or (ii) such Condemnation materially interferes with the
current use and operation of such Property. 
 “Maturity Date” means the Payment Date in July, 2019, as same may be
extended in accordance with Section 1.1(d), or such earlier date as may result from acceleration of the Loan in accordance with this Agreement. 

“Maximum Leverage Ratio” has the meaning specified in the Guaranty. 

  
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 “Maximum Management Fee” means 3.0% of the gross Revenues of the Properties.

 “Mezzanine Borrower” means, collectively, Seritage KMT Mezzanine Finance LLC and Seritage SRC Mezzanine Finance LLC,
together with their permitted successors and assigns. 
 “Mezzanine Lender” means H/2 Special Opportunities III Corp. and
JPMorgan Chase Bank, National Association, and their respective successors and assigns as “Lender” under and as defined in the Mezzanine Loan Agreement identified to Lender in writing. 

“Mezzanine Loan” means that certain mezzanine loan made on the date hereof by Mezzanine Lender to Mezzanine Borrower. 

“Mezzanine Loan Agreement” means that certain Mezzanine Loan Agreement, dated as of the date hereof, by and between Mezzanine
Lender and Mezzanine Borrower, pursuant to which the Mezzanine Loan was made, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time. 

“Mezzanine Loan Allocated Loan Amount” means the “Allocated Loan Amount” as defined in the Mezzanine Loan
Agreement. 
 “Mezzanine Loan Amount” means $236,195,656. 

“Mezzanine Loan Completion Guaranty” means the “Completion Guaranty” as defined in the Mezzanine Loan Agreement.

 “Mezzanine Loan Completion Guaranty Payments” means “Completion Guaranty Payments” as defined in the Mezzanine
Loan Agreement. 
 “Mezzanine Loan Documents” means the “Loan Documents” as defined in the Mezzanine Loan
Agreement. 
 “Mezzanine Loan Event of Default” means an “Event of Default” under and as defined in the Mezzanine
Loan Agreement. 
 “Mezzanine Loan Primary Servicing Fee” means the “Primary Servicing Fee” under and as defined
in the Mezzanine Loan Agreement. 
 “Mezzanine Loan Principal Indebtedness” means the “Principal Indebtedness” as
defined in the Mezzanine Loan Agreement. 
 “Mezzanine Loan Release Price” means the “Release Price” as such term
is defined in the Mezzanine Loan Agreement. 
 “Mezzanine Loan Spread” means 7.26%. 

  
 27 

 “Minimum Cash Equity” means $1,131,195,656, plus the amount necessary to
purchase the JV Interests, plus amounts (other than amounts funded by Lender and Mezzanine Lender) required to fund actual, documented, third-party and Lender-related
closing costs of the Approved Separation Transaction, the Loan and the Mezzanine Loan. 
 “Minimum Purchase Price” means
the sum of (i) $2,262,391,312 for the Properties plus (ii) $429,012,486 for the GGP JV Interests, the Simon JV Interests and the Macerich JV Interests. 

“Monthly Capital Expenditure Amount” means, with respect to each Payment Date in any Fiscal Year, an amount equal to 1/12 of
the Capital Expenditures set forth in the Approved Annual Budget for such Fiscal Year. 
 “Monthly TI/LC Amount” means,
with respect to each Payment Date in any Fiscal Year, an amount equal to 1/12 of the costs of Tenant Improvements and Leasing Commissions set forth in the Approved Annual Budget for such Fiscal Year. 

“Moody’s” means Moody’s Investors Service, Inc. and its successors. 

“Mortgage” means, with respect to each Property, that certain mortgage, deed of trust or deed to secure debt, as the case may
be, assignment of rents and leases, security agreement and fixture filing encumbering any such executed by Borrower as of the Closing Date, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time in
accordance with this Agreement. 
 “Mortgage Loan Spread” means the weighted average of the applicable Spread on the A-1
Notes and the applicable Spread on the A-2 Notes (assuming for such purposes that the A-2 Notes are fully funded). 
 “MRT”
has the meaning set forth in Section 5.22(j). 
 “MRT Amendment” has the meaning set forth in
Section 5.22(j). 
 “Multi-Tenant Occupancy Date” means, with respect
to any Property at any time during the term of the SHLD Master Lease, the earliest date (including as of the commencement date thereunder) on which any of the following shall occur with respect to such Property: (a) such Property shall be
subject to a Third Party Lease as to which the SHLD Master Tenant relinquished occupancy of the space to be occupied by such Tenant or (b) Borrower shall have recaptured all or any portion of the Property in accordance with terms of the SHLD
Master Lease (including in connection with the exercise by SHLD Master Tenant of its termination option thereunder). 
 “Net
Operating Income” means, with respect to any Test Period, the difference of (i) Operating Income for such Test Period minus (ii) Operating Expenses for such Test Period. 

“Net Sales Proceeds” means the total cash consideration received by or on behalf of Borrower in connection with the sale of
the applicable Release Property or JV Release Property, less the sum of, without duplication, (i) third-party, out-of-pocket
costs and expenses 

  
 28 

 
actually incurred by Borrower in connection with the negotiation and consummation of the applicable sale of the related Release Property or JV Release Property (including without limitation,
transfer taxes, attorneys’ fees, brokerage fees, survey costs, title insurance premiums, related search and recording charges) and (ii) any distributions required to be made by Seritage REIT (and ratable distributions by Seritage OP) in
order to avoid taxation on the profits or gains earned in connection with such sale, all of which costs and expenses and distributions described in clause (i) and clause (ii), in the aggregate, shall not exceed 10.0% of the gross
sale proceeds and shall be substantiated to Lender’s reasonable satisfaction. 
 “New Borrower” means a newly-formed Special Purpose Entity that is wholly-owned and Controlled, directly or indirectly, by Seritage OP and is formed for the purposes described in, and in accordance
with, the provisions of Section 9.30. 
 “Nonconsolidation Opinion” means the opinion letter, dated the Closing
Date, delivered by Borrower’s counsel to Lender and addressing issues relating to substantive consolidation in bankruptcy. 

“Non-Defaulting Lender” has the meaning set forth in Section 1.7(g). 

“Non-Defaulting Lender Cure Period” has the meaning set forth in Section 1.7(g). 

“Note(s)” means, individually or collectively, as the context may require, the A-1 Notes and/or the A-2 Notes. 

“Note Component” has the meaning set forth in Section 1.1(c). 

“Obligor” has the meaning set forth in Section 9.30(a). 

“OFAC List” means the list of specially designated nationals and blocked persons subject to financial sanctions that is
maintained by the U.S. Treasury Department, Office of Foreign Assets Control and any other similar list maintained by the U.S. Treasury Department, Office of Foreign Assets Control pursuant to any applicable governmental statutes, laws, rules,
orders, regulations, ordinances, judgments, decrees and injunctions of Governmental Authorities, including trade embargo, economic sanctions, or other prohibitions imposed by Executive Order of the President of the United States. The OFAC List
currently is accessible at http://www.treasury.gov/ofac/downloads/t11sdn.pdf. 
 “Officer’s Certificate” means a
certificate delivered to Lender that is signed by an authorized officer of Borrower and certifies the information therein. 

“One-Year Forward LIBOR” means, as of any date of determination, the rate (expressed as a percentage per annum and rounded up
to the next nearest 1/1000 of 1%) that appears on Bloomberg MCFR Screen as 1 Month LIBOR on a one (1) year forward basis, as determined by Lender as of 11:00 am New York City time on such date, which determination by Lender shall be binding
absent manifest error. 
 “Operating Account” means one or more Eligible Accounts maintained by the Approved Property
Manager or Borrower at an Eligible Institution, which account (i) shall only contain amounts in respect of operating and capital expenses for one or more of the Properties (and no amounts unrelated to the Properties shall be deposited therein
or otherwise commingled with the amounts on deposit in such account) and (ii) is subject to an Operating Account Agreement. 

  
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 “Operating Account Agreement” means an agreement relating to the Operating
Account, dated as of the date hereof, among Lender, Borrower and the Eligible Institution at which such account is maintained, pursuant to which such account is pledged to the Lender and the Approved Property Manager or Borrower is given full access
to the funds on deposit therein but provides for the discontinuance of such access upon receipt by such Eligible Institution of written notice from Lender of the occurrence of an Event of Default, as the same may be amended, restated, replaced,
supplemented or otherwise modified from time to time in accordance with this Agreement. 
 “Operating Expenses” means, for
any period, all operating, renting, administrative, management (including compensation of property- and regional-level employees of Guarantor for activities related to the properties), legal and other ordinary expenses of Borrower and the Properties
during such period, determined in accordance with GAAP; provided, however, that such expenses shall not include (i) depreciation, amortization or other non-cash items, (ii) interest,
principal or any other sums due and owing with respect to the Loan, (iii) income taxes or other taxes in the nature of income taxes, (iv) Capital Expenditures, (v) costs of Tenant Improvements or Leasing Commissions, (vi) equity
distributions, (vii) solely for purposes of calculating Net Operating Income, fees and expenses incurred, including fees payable to SHLD Master Tenant, to recapture and reconfigure space at the Properties in accordance with the SHLD Master
Lease, whether or not constituting Capital Expenditures and (viii) solely for purposes of calculating Net Operating Income, overhead expenses (e.g., general and administrative expenses) of Guarantor not allocable to operation of the Properties
(based on customary practice for public REITs). 
 “Operating Income” means, for any period, all operating income from the
Properties for such period, including actual in-place base rents under bona fide Qualified Leases and actual percentage rent and expense reimbursements under Qualified Leases, in each case, determined in
accordance with GAAP (but without straight-lining of rents), other than (i) Loss Proceeds (but Operating Income will include rental loss insurance proceeds to the extent allocable to such period),
(ii) any revenue attributable to a Lease that is not a Qualified Lease, (iii) any revenue attributable to a Lease to the extent it is paid more than 30 days prior to the due date, (iv) any interest income from any source, (v) any
repayments received from any third party of principal loaned or advanced to such third party by Borrower, (vi) any proceeds resulting from the Transfer of all or any portion of the Collateral, (vii) sales, use and occupancy or other taxes
on receipts required to be accounted for by Borrower to any government or governmental agency, (viii) Termination Fees, and (ix) any other extraordinary or non-recurring items. 

“Overpaying Obligor” has the meaning set forth in Section 9.30. 

“PATRIOT Act” means the Uniting and Strengthening America by Providing Appropriate Tools Required to Intercept and Obstruct
Terrorism Act (Title III of Pub. L. 107-56 (signed into law October 26, 2001), as amended from time to time. 

“Participant Register” has the meaning set forth in Section 9.7(b) 

“Participation” has the meaning set forth in Section 9.7(b). 

  
 30 

 “Payment Date” means, with respect to each Interest Accrual Period, the ninth (9th) day of the calendar month in which such Interest Accrual Period ends; provided, that prior to a Securitization, Lender shall have the right to change the Payment Date so long as a
corresponding change to the Interest Accrual Period is also made. Whenever a Payment Date is not a Business Day, the entire amount that would have been due and payable on such Payment Date shall instead be due and payable on the immediately
preceding Business Day. 
 “Permits” means all licenses, permits, variances and certificates used in connection with the
ownership, operation, use or occupancy of any of the Properties (including certificates of occupancy, business licenses, state health department licenses, licenses to conduct business and all such other permits, licenses, consents, approvals and
rights, obtained from any Governmental Authority or private Person concerning ownership, operation, use or occupancy of any of the Properties). 

“Permitted Debt” means: 

(i) the Indebtedness; 

(ii) Taxes not yet delinquent or that are being contested by Borrower in good faith in accordance with the terms of this
Agreement; 
 (iii) Tenant Improvement and Capital Expenditure costs and Approved Redevelopment Costs, in each case, required
under Leases or otherwise permitted to be incurred under the Loan Documents that are paid on or prior to the date when due or are being contested by Borrower in good faith in accordance with the terms of this Agreement; and 

(iv) Trade Payables not more than 90 days outstanding (unless Borrower or JV Pledgor, as applicable, is contesting such Trade
Payables in good faith in accordance with the terms of this Agreement) which are incurred in the ordinary course of Borrower’s ownership and operation of the Properties, or JV Pledgor’s ownership of the JV Interests, as the case may be, in
amounts not exceeding, when aggregated with all amounts then outstanding under clauses (v) through (vii) below, $30,000,000 in the aggregate at any time outstanding; 

(v) Debt incurred by Borrower in the financing of equipment and other personal property used on any of the Properties, so long
as such Debt is not secured by any Lien on any Collateral or JV Collateral and does not exceed, when aggregated with all amounts then outstanding under clause (iv) above and clauses (vi) and (vii) below, $30,000,000 in the aggregate
at any time outstanding; 
 (vi) any retainage paid by Borrower in the ordinary course of business, but subject to the terms
of the applicable contract under which such retainage is held in amounts not exceeding, when aggregated with all amounts then outstanding under clauses (iv) and (v) above and (vii) below, $30,000,000 in the aggregate at any time
outstanding; 
 (vii) obligations of Borrower under unsecured bonds and letters of credit in amounts required in connection
with the bonding of Liens that may encumber any 

  
 31 

 
Property from time to time in amounts not exceeding, when aggregated with all amounts then outstanding under clauses (iv) through (vi) above, $30,000,000 in the aggregate at any time
outstanding; and 
 (viii) obligations of Borrower to reimburse Guarantor for Completion Guaranty Payments solely to the
extent paid pursuant to Section 3.2(b)(x). 
 “Permitted Encumbrances” means: 

(i) the Liens created by the Loan Documents; 

(ii) all Liens and other matters specifically disclosed on Schedule B of the Title Insurance Policies; 

(iii) Liens, if any, for Taxes not yet delinquent; 

(iv) mechanics’, materialmen’s or similar Liens, if any, and Liens for delinquent taxes or impositions, in each case
only if being diligently contested in good faith and by appropriate proceedings; provided that no such Lien is in imminent danger of foreclosure; and provided further that either (a) each such Lien is released or discharged
of record or fully insured over by the title insurance company issuing the Title Insurance Policies within 30 days of its creation, (b) Borrower deposits with Lender, by the expiration of such 30-day
period, an amount equal to 120% of the dollar amount of such Lien or a bond in the aforementioned amount from such surety, and upon such terms and conditions, as is reasonably satisfactory to Lender, as security for the payment or release of such
Lien; 
 (v) rights of existing and future Tenants as tenants only pursuant to written Leases that are either (A) in
existence prior to the Closing Date, as disclosed to Lender or (B) entered into in conformity with the provisions of this Agreement; 

(vi) customary easements, reciprocal easement and operating agreements, rights of way, declarations, dedications, development
agreements, reservations, covenants, conditions and restrictions and other similar non-monetary encumbrances against any of the Properties entered into by Borrower in connection with the development and
operation of such Property in accordance with this Agreement (including any documents required to be recorded in accordance with applicable law) which do not result in a Property Material Adverse Effect; 

(viii) with respect to Leases approved pursuant to this Agreement, memoranda of such Leases; 

(ix) mechanic’s and materialmens’ liens, including those being contested by Borrower in good faith, which (A) no
longer constitute Liens against any of the Properties by virtue of their having been bonded in accordance with applicable Legal Requirements or (B) for which no exception is taken in the Title Insurance Policies; 

  
 32 

 (x) equipment leases, pledges or similar instruments that are the subject of
Permitted Debt incurred in the financing of equipment and other personal property used on any of the Properties; and 
 (xi)
all now or hereafter existing Subleases (as defined in the SHLD Lease); 
 (xii) all zoning, planning, land use, and other
similar Legal Requirements with respect to any Property; and 
 (xiii) such other title and survey exceptions as Lender may
approve, such approval not to be unreasonably withheld. 
 “Permitted Equity Distribution Amount” means, with respect to
any date of determination, the difference of (i) the REIT Cash Distribution Amount as of such date minus (ii) Guarantor Available Funds Amount as of such date. 

“Permitted Investments” shall mean any one or more of the following obligations or securities acquired at a purchase price of
not greater than par, including those issued by Servicer, the trustee under any Securitization or any of their respective Affiliates, payable on demand or having a maturity date not later than the Business Day immediately prior to the first Payment
Date following the date of acquiring such investment and meeting one of the appropriate standards set forth below: 

(i) obligations of, or obligations fully guaranteed as to payment of principal and interest by, the United
States or any agency or instrumentality thereof provided such obligations are backed by the full faith and credit of the United States of America including, without limitation, obligations of: the U.S. Treasury (all direct or fully guaranteed
obligations), the Farmers Home Administration (certificates of beneficial ownership), the General Services Administration (participation certificates), the U.S. Maritime Administration (guaranteed Title XI financing), the Small Business
Administration (guaranteed participation certificates and guaranteed pool certificates), the U.S. Department of Housing and Urban Development (local authority bonds) and the Washington Metropolitan Area Transit Authority (guaranteed transit bonds);
provided, however, that the investments described in this clause (A) must have a predetermined fixed dollar of principal due at maturity that cannot vary or change, (B) if rated by S&P, must not have an “r” highlighter
affixed to their rating, (C) if such investments have a variable rate of interest, such interest rate must be tied to a single interest rate index plus a fixed spread (if any) and must move proportionately with that index, (D) must not be
subject to liquidation prior to their maturity and (E) must have maturities of not more than 365 days; 
 (ii) Federal
Housing Administration debentures having maturities of not more than 365 days; 
 (iii) obligations of the following United
States government sponsored agencies: Federal Home Loan Mortgage Corp. (debt obligations), the Farm Credit System (consolidated systemwide bonds and notes), the Federal Home Loan Banks (consolidated debt obligations), the Federal National Mortgage
Association (debt 

  
 33 

 
obligations), the Financing Corp. (debt obligations), and the Resolution Funding Corp. (debt obligations); provided, however, that the investments described in this clause (A) must have
a predetermined fixed dollar of principal due at maturity that cannot vary or change, (B) if rated by S&P, must not have an “r” highlighter affixed to their rating, (C) if such investments have a variable rate of interest,
such interest rate must be tied to a single interest rate index plus a fixed spread (if any) and must move proportionately with that index, (D) must not be subject to liquidation prior to their maturity and (E) must have maturities of not
more than 365 days; 
 (iv) federal funds, unsecured certificates of deposit, time deposits, bankers’ acceptances and
repurchase agreements or obligations with maturities of not more than 365 days issued or held by any depository institution or trust company incorporated or organized under the laws of the United States of America or any state thereof and subject to
supervision and examination by federal or state banking authorities, so long as the commercial paper or other short term obligations of which at all times are rated in the highest short term rating category by each Rating Agency (or, if not rated by
all Rating Agencies, rated by at least one Rating Agency in the highest short term rating category and otherwise acceptable to each other Rating Agency, as confirmed in writing that such investment would not, in and of itself, result in a downgrade,
qualification or withdrawal of the initial, or, if higher, then current ratings assigned to the Certificates); provided, however, that the investments described in this clause (A) must have a predetermined fixed dollar of principal due at
maturity that cannot vary or change, (B) if rated by S&P, must not have an “r” highlighter affixed to their rating, (C) if such investments have a variable rate of interest, such interest rate must be tied to a single
interest rate index plus a fixed spread (if any) and must move proportionately with that index, (D) must not be subject to liquidation prior to their maturity and (E) must have maturities of not more than 365 days; 

(v) fully Federal Deposit Insurance Corporation-insured demand and time deposits in, or
certificates of deposit of, or bankers’ acceptances issued by, any bank or trust company, savings and loan association or savings bank, the short term obligations of which at all times are rated in the highest short term rating category by each
Rating Agency (or, if not rated by all Rating Agencies, rated by at least one Rating Agency in the highest short term rating category and otherwise acceptable to each other Rating Agency, as confirmed in writing that such investment would not, in
and of itself, result in a downgrade, qualification or withdrawal of the initial, or, if higher, then current ratings assigned to the Certificates); provided, however, that the investments described in this clause must (A) have a predetermined
fixed dollar of principal due at maturity that cannot vary or change, (B) if rated by S&P, must not have an “r” highlighter affixed to their rating, (C) if such investments have a variable rate of interest, such interest rate
must be tied to a single interest rate index plus a fixed spread (if any) and must move proportionately with that index, and (D) such investments must not be subject to liquidation prior to their maturity; 

(vi) debt obligations with maturities of not more than 365 days and at all times rated by each Rating Agency (or, if not rated
by all Rating Agencies, rated by at least one Rating Agency and otherwise acceptable to each other Rating Agency, as confirmed in 

  
 34 

 
writing that such investment would not, in and of itself, result in a downgrade, qualification or withdrawal of the initial, or, if higher, then current ratings assigned to the Certificates) in
its highest long-term unsecured rating category; provided, however, that the investments described in this clause must (A) have a predetermined fixed dollar of principal due at maturity that cannot vary
or change, (B) if rated by S&P, must not have an “r” highlighter affixed to their rating, (C) if such investments have a variable rate of interest, such interest rate must be tied to a single interest rate index plus a fixed
spread (if any) and must move proportionately with that index, and (D) such investments must not be subject to liquidation prior to their maturity; 

(vii) commercial paper (including both
non-interest-bearing discount obligations and interest-bearing obligations payable on demand or on a specified date not more than
one year after the date of issuance thereof) with maturities of not more than 365 days and that at all times is rated by each Rating Agency (or, if not rated by all Rating Agencies, rated by at least one Rating Agency and otherwise acceptable to
each other Rating Agency, as confirmed in writing that such investment would not, in and of itself, result in a downgrade, qualification or withdrawal of the initial, or, if higher, then current ratings assigned to the Certificates) in its highest short-term unsecured debt rating; provided, however, that the investments described in this clause must (A) have a predetermined fixed dollar of principal due at maturity that cannot vary or change, (B) if
rated by S&P, must not have an “r” highlighter affixed to their rating, (C) if such investments have a variable rate of interest, such interest rate must be tied to a single interest rate index plus a fixed spread (if any) and
must move proportionately with that index, and (D) such investments must not be subject to liquidation prior to their maturity; 

(viii) units of taxable money market funds, which funds are regulated investment companies, seek to maintain a constant net
asset value per share and invest solely in obligations backed by the full faith and credit of the United States, which funds have the highest rating available from each Rating Agency (or, if not rated by all Rating Agencies, rated by at least one
Rating Agency and otherwise acceptable to each other Rating Agency, as confirmed in writing that such investment would not, in and of itself, result in a downgrade, qualification or withdrawal of the initial, or, if higher, then current ratings
assigned to the Certificates) for money market funds; and 
 (ix) any other security, obligation or investment which has been
approved as a Permitted Investment by Lender and with respect to which the Rating Condition is satisfied; 
 provided, however, that no
obligation or security shall be a Permitted Investment if (A) such obligation or security evidences a right to receive only interest payments or (B) the right to receive principal and interest payments on such obligation or security are
derived from an underlying investment that provides a yield to maturity in excess of 120% of the yield to maturity at par of such underlying investment. 

“Permitted JV” has the meaning set forth in Section 2.3(a)(ii). 

  
 35 

 “Permitted JV Agreement” means, with respect to any Permitted JV, the joint
venture (or similar) agreement entered into between the applicable Seritage JV Member and the applicable Permitted JV Member with respect to such Permitted JV, as the same may be amended, restated, replaced, supplemented or otherwise modified from
time to time in accordance with this Agreement. 
 “Permitted JV Collateral” means, with respect to any Permitted JV, the
“Collateral” as defined in the applicable Permitted JV Pledge and Security Agreement. 
 “Permitted JV Documents”
means, with respect to any Permitted JV, the Permitted JV Agreement and any other material documents entered into by the applicable Seritage JV Member and/or its affiliates and the Permitted JV Member and/or its affiliates in connection with the
Permitted JV, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time in accordance with this Agreement. 

“Permitted JV Interests” means, with respect to any Permitted JV, has the meaning set forth in the applicable Permitted JV
Pledge and Security Agreement. 
 “Permitted JV Member” has the meaning set forth in Section 2.3(a)(ii). 

“Permitted JV Pledge and Security Agreement” means an agreement substantially in the form of Exhibit D, as the same
may be amended, restated, replaced, supplemented or otherwise modified from time to time in accordance with this Agreement. 

“Permitted Preferred Equity” means (i) exchange-listed, perpetual non-voting preferred equity issued by Seritage REIT or Seritage OP or (ii) subject to compliance with the Maximum Leverage Ratio, preferred equity issued by Seritage REIT or Seritage OP that does not comply
with clause (i). 
 “Permitted Transfer” means each of the following: 

(i) Transfers of direct and indirect equity interests in Borrower or JV Pledgor that do not result in a Prohibited Change of
Control; 
 (ii) Transfers of Equity Interests that are traded on a
nationally-recognized public stock exchange in Seritage REIT that do not result in a Prohibited Change of Control; 

(iii) Transfers of any Property to (a) a Release Entity in connection with the substantially simultaneous release of a
Property in accordance with Section 2.2 and Section 2.3 and (b) a New Borrower in accordance with Section 9.30; 

(iv) Transfers that have been approved by Lender in accordance with the Loan Documents; 

(v) Permitted Encumbrances; 

  
 36 

 (vi) Transfers of worn-out, defective or
obsolete furnishings, fixtures or equipment that are promptly replaced with property of equivalent value and functionality if reasonably necessary; 

(vii) Leases that either have been approved by Lender in accordance with this Agreement or do not require the approval of
Lender in accordance with this Agreement; 
 (viii) Transfers by a natural person of equity interests owned by such
transferor to such transferor’s immediate family members or trusts established for the benefit of such family members for estate planning purposes; 

(ix) subject to compliance with Section 5.24(a) hereof, and so long as no Event of Default exists, the Transfer,
but not pledge, of any JV Interests (or any direct or indirect Equity Interests in JV Pledgor) to any Person (other than an Affiliate or an Embargoed Person) solely for cash consideration; or 

(x) Transfers in accordance with Section 2.4(e) hereof. 

“Permitted Variance” means expenditures by Borrower that result in a variance from an Approved Annual Budget or an Approved
Redevelopment Plan and Budget, as the case may be, for (i) non-discretionary items, (ii) expenditures required to be made by reason of the occurrence of any emergency (i.e., an unexpected
event that threatens harm to persons or property at any of the Properties) and with respect to which it would be impracticable, under the circumstances, to obtain Lender’s prior consent thereto, (iii) with respect to the Approved Annual
Budget, an increase of up to 5.0% of the total budget for any Property, and increase of up to 2.5% of the total Approved Annual Budget for all Properties and (iv) with respect to any Approved Redevelopment Plan and Budget, an increase of up to
5.0% with respect to any line-item in such budget, and an increase of up to 2.5% of such total budget. 
 “Person” means
any natural person, corporation, limited liability company, partnership, joint venture, estate, trust, unincorporated association or Governmental Authority and any fiduciary acting in such capacity on behalf of any of the foregoing. 

“Plan Assets” means assets of any (i) employee benefit plan (as defined in Section 3(3) of ERISA) subject to Part
4, Subtitle B, Title I of ERISA, (ii) plan (as defined in Section 4975(e)(1) of the Code) subject to Section 4975 of the Code, or (iii) governmental plan (as defined in Section 3(32) of ERISA) subject to federal, state
or local laws, rules or regulations substantially similar to Part 4, Subtitle B, Title I of ERISA or Section 4975 of the Code. 

“Policies” has the meaning set forth in Section 5.15(b). 

“Primary Servicing Fee” has the meaning set forth in Section 9.22. 

“Prime Rate” means the rate of interest published in The Wall Street Journal from time to time as the “Prime Rate.”
If more than one “Prime Rate” is published in The Wall Street Journal for a day, the average of such “Prime Rates” shall be used, and such average shall be rounded up to the nearest 1/100th of one percent (0.01%). If The Wall
Street Journal ceases to publish the “Prime Rate,” Lender shall select an equivalent publication that publishes such 

  
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“Prime Rate,” and if such “Prime Rates” are no longer generally published or are limited, regulated or administered by a governmental or quasigovernmental body, then Lender
shall select a comparable interest rate index. 
 “Prime Rate Loan” means the Loan at such time as interest thereon accrues
at a rate of interest based upon the Prime Rate. 
 “Prime Rate Spread” means, in connection with any conversion of the
Loan to a Prime Rate Loan, the difference (expressed as the number of basis points) of (a) the sum of LIBOR, determined as of the Interest Determination Date for which LIBOR was last available, plus the Mortgage Loan Spread (disregarding the
assumption set forth in the definition of “Mortgage Loan Spread” and instead making such calculation based on the actual outstanding principal balance of the A-2 Notes), minus (b) the Prime Rate on such Interest Determination
Date; provided, however, that if such difference is a negative number, then the Prime Rate Spread shall be zero. 

“Principal Indebtedness” means the principal balance of the Loan outstanding from time to time. 

“Prohibited Change of Control” means the occurrence of any of the following: 

(i) the failure of Borrower or Mezzanine Borrower to be directly or indirectly 100% owned and Controlled by Seritage OP; 

(ii) the failure of Seritage REIT to be the general partner of and to Control Seritage OP; 

(iii) any “person” or “group” (as such terms are used in sections 13(d) and 14(d) of the Exchange Act, as
amended, but excluding any employee benefit plan of Seller and its subsidiaries, and any Person or entity acting in its capacity as trustee, agent or other fiduciary or administrator of any such plan), other than ESL or Fairholme (a) shall have
acquired beneficial ownership of Equity Interests of Seritage REIT accounting for 35% or more of the aggregate voting power of all outstanding Equity Interests of Seritage REIT with respect to the election of members of the Board of Trustees of
Seritage REIT, (b) shall have obtained the power (whether or not exercised) to elect a majority of the Board of Trustees of Seritage REIT, (c) shall have acquired beneficial ownership of Equity Interests of Seritage REIT and/or Seritage OP
constituting, directly or indirectly, 35% or more of the aggregate economic interest in Seritage OP (calculated in light of the economic ownership of Seritage REIT in Seritage OP as it may appear from time to time) or (d) shall have acquired
beneficial ownership of a majority of the Equity Interests of Seritage OP (excluding any such Equity Interests held by Seritage REIT); 

(iv) the majority of the seats (other than vacant seats) on the board of trustees of Seritage REIT shall cease to be occupied
by Persons who either (a) were members of the board of trustees of Seritage REIT as of the Closing Date or (b) were nominated for election by (or whose appointment to the board of trustees was otherwise approved by) the board of trustees
of Seritage REIT, a majority of whom were directors as of the Closing Date or whose election or nomination for election was previously approved by a majority of such trustees; 

  
 38 

 (v) any Transfer, whether directly or indirectly through its direct or indirect
subsidiaries, of all or substantially all of the assets of Seritage REIT or Seritage OP to a Person that is not 100% owned and Controlled by Seritage OP; or 

(vi) the common Equity Interests of Seritage REIT shall, for a period of two (2) consecutive trading days, cease to be
traded on a nationally-recognized public stock exchange; or 
 (vii) Seritage REIT or
Seritage OP consolidates with, or merges with or into, any Person, or any Person consolidates with, or merges with or into, Seritage REIT, in any such event pursuant to a transaction where the holders of voting Equity Interests in Seritage REIT or
Seritage OP, as the case may be, immediately prior to the consolidation or merger, would not, immediately after such consolidation or merger, beneficially own, directly or indirectly, Equity Interests in Seritage REIT or Seritage OP, as the case may
be, representing in the aggregate more than 50% of the combined voting Equity Interests of Seritage REIT or Seritage OP, as the case may be, or the applicable surviving company. 

provided that “Prohibited Change of Control” shall exclude any such event resulting from the exercise by Mezzanine Lender of its
rights and/or remedies under the Mezzanine Loan Documents to the extent permitted under any intercreditor agreement between Lender and Mezzanine Lender. 

“Prohibited Pledge” has the meaning set forth in Section 7.1(f). 

“Prohibited Transferee” means any Person that has, or has an Affiliate that Controls or is Controlled by such Person that,
(i) has, within the past seven years, defaulted or is now in default (beyond any applicable cure periods) with respect to its material obligations under any written commercial loan agreement with Lender or Mezzanine Lender, (ii) has been
convicted in a criminal proceeding for a felony, (iii) has at any time filed a voluntary petition under the Bankruptcy Code or any other federal or state bankruptcy or insolvency law as a borrower or obligor in a commercial lending transaction,
(iv) has at any time been subject to the filing of an involuntary petition under the Bankruptcy Code or any other federal or state bankruptcy or insolvency law, which petition was not dismissed within 90 days of filing, (v) has within the
past seven years filed or been an adverse party to a claim, petition or cause of action in any municipal, state or federal court or other administrative or regulatory agency in a commercial loan transaction with Lender or Mezzanine Lender, or
(vi) is an Embargoed Person or is listed on the OFAC List. 
 “Properties” means, as of the Loan Closing, the real
properties described on Schedule A-1, and as of the Approved Separation Closing, the real properties described on Schedule A-2, in each case, together with all buildings and other improvements thereon and all personal property
appurtenant thereto; and “Property” means an individual property included in the Properties or all Properties collectively, as the context may require. 

  
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 “Property Agreements” means those certain reciprocal easement agreements and
other property agreements set forth on Schedule G, and similar agreements entered into after the Closing Date in accordance with this Agreement. 

“Property Business Plans” has the meaning set forth in Section 5.21. 

“Property Material Adverse Effect” means, as to any Property, a material adverse effect upon (i) Borrower’s title
to such Property, (ii) enforcement or validity of the Mortgage with respect to such Property, or (iii) the value, use or enjoyment of such Property or the operation or occupancy thereof. 

“Property Release Threshold” means an amount equal to the difference of (i) $307,500,000 minus (ii) any
amounts required to be deducted therefrom in accordance with Section 2.1(b)(ii) minus (ii) any Designated Net Sales Proceeds deposited in the TI/LC Reserve Account and/or the Redevelopment Project Reserve Account in
accordance with Section 2.2(a)(iv). 
 “Proportional Amount” has the meaning set forth in
Section 9.30(a). 
 “Proprietary Information” means occupancy and leasing pipeline reports, tenant-by-tenant
rental revenue by Property, individual property-level SHLD EBITDAR information and individual property-level store sales information for individual tenants. 

“Qualified Institutional Lender” shall mean any bank, savings and loan association, investment bank, insurance company, trust
company, commercial credit corporation, pension plan, pension fund, pension advisory firm, mutual fund, sovereign wealth fund, state or other governmental pension fund or plan, real estate company, real estate investment trust, investment fund or
institution substantially similar to any of the foregoing; provided in each case that such institution has (i) total assets (in name or under management) in excess of, or is managed by a fund manager that manages in excess of, the greater of
(a) 2.5x the capital/statutory surplus or shareholder’s equity required under clause (ii) and (b) $650,000,000 and (ii) (except with respect to a pension advisory firm or similar fiduciary) capital/statutory surplus
or shareholder’s equity equal to or greater than 5x the unfunded commitment assumed by the applicable assignee or participant, in each case excluding the Loan, and is regularly engaged in the business of making or owning commercial real estate
loans. 
 “Qualified Lease” means (i) the SHLD Master Lease, (ii) the Lands’ End Master Lease,
(iii) the Sears Hometown License Agreement and (iv) any other Lease (other than an Affiliate Lease with Guarantor or a Subsidiary thereof), in each case, to a Tenant that is in occupancy and open for business at the applicable Property, is
not in default in the payment of rent under its Lease and is not the subject of a bankruptcy or similar insolvency proceeding (unless such Tenant has assumed such Lease in bankruptcy). 

“Qualified Replacement Lease” means a Lease that (i) is with a nationally recognized retail tenant with more than
50 locations in the United States, (ii) has a minimum initial term of 10 years, (iii) provides for Borrower to incur the costs of Tenant Improvements, Capital Expenditures, Leasing Commissions and/or free rent on arm’s-length, market terms but in no event shall such amounts exceed $50 per square foot with respect to such Lease and (iv)

  
 40 

 
provides for aggregate annual base rent at least equal to the applicable allocated annual base rent under the SHLD Master Lease immediately prior to the applicable recapture/termination and
(v) as to which Tenant is not in default in the payment of basic rent under such Lease and is not the subject of a bankruptcy or similar insolvency proceeding (unless Tenant has assumed such Lease in bankruptcy). 

“Rating Agency” shall mean, prior to the final Securitization of the Loan, each of S&P, Moody’s, DBRS and Fitch, or
any other nationally-recognized statistical rating agency that has been designated by Lender and, after the final Securitization of the Loan, shall mean any of the foregoing that have rated and continue to
rate any of the Certificates (excluding unsolicited ratings). 
 “Rating Condition” means, with respect to any proposed
action, the receipt by Lender of confirmation in writing from each of the Rating Agencies that such action shall not result, in and of itself, in a downgrade, withdrawal, or qualification of any rating then assigned to any outstanding Certificates.
No Rating Condition shall be regarded as having been satisfied unless and until any conditions imposed on the effectiveness of any confirmation from any Rating Agency shall have been satisfied. Lender shall waive a Rating Condition requirement with
respect to any Rating Agency that has declined to review the applicable proposal. 
 “Recapture Plans” means the
preliminary plans of Borrower and SHLD Master Tenant with respect to physical separation of any space at a Property recaptured by Borrower which have been approved by Lender as of the Closing Date and copies of which are appended to the SHLD Master
Lease and are attached hereto as Schedule N, as the same may be amended, updated, replaced or supplemented in accordance with the terms of the SHLD Master Lease and/or this Agreement, including Section 5.23. 

“Recapture Threshold” has the meaning set forth in Section 5.7(g). 

“Redevelopment Bring-Down Package” has the meaning set forth in Section 5.22(g). 

“Redevelopment Costs” means hard and soft costs set forth in a Redevelopment Plan and Budget, including Capital Expenditures
and costs of Tenant Improvements and Leasing Commissions. 
 “Redevelopment Date of Coverage” has the meaning set forth in
Section 5.22(g). 
 “Redevelopment Plan and Budget” has the meaning set forth in Section 5.22(a).

 “Redevelopment Project” has the meaning set forth in Section 5.22(a). 

“Redevelopment Project Reserve Account” has the meaning set forth in Section 3.11(a). 

“Redevelopment Reconciliation Report” has the meaning set forth in Section 5.22(d). 

  
 41 

 “Reference Banks” means four major banks in the London interbank market selected
by Lender. 
 “Regulatory Change” means any change after the Closing Date in federal, state or foreign laws or regulations
or the adoption or the making, after such date, of any interpretations, directives or requests applying to a class of banks or companies controlling banks, including Lender, of or under any federal, state or foreign laws or regulations (whether or
not having the force of law) by any court or governmental or monetary authority charged with the interpretation or administration thereof; provided that notwithstanding anything herein to the contrary, (x) the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines or directives thereunder or issued in connection therewith and (y) all requests, rules, guidelines or directives
promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or the United States or foreign regulatory authorities, in each case pursuant to Basel III, shall in each case
be deemed to be a “Regulatory Change”, regardless of the date enacted, adopted or issued. 
 “REIT Cash Distribution
Amount” has the meaning set forth in Section 3.8(b)(i). 
 “Release” with respect to any Hazardous
Substance means any release, deposit, discharge, emission, leaking, leaching, spilling, seeping, migrating, injecting, pumping, pouring, emptying, escaping, dumping, disposing or other movement of Hazardous Substances into the indoor or outdoor
environment (including the movement of Hazardous Substances through ambient air, soil, surface water, ground water, wetlands, land or subsurface strata), and “Released” has the meaning correlative thereto. 

“Release Date” has the meaning set forth in Section 2.2. 

“Release Entity” means a newly-formed Special Purpose Entity that is wholly-owned and Controlled, directly or indirectly, by
Seritage OP and is formed for the purpose of facilitating the substantially simultaneous release of Property in accordance with Section 2.2 or Section 2.3, subject to satisfaction of the respective requirements therein. 

“Release Price” means: 

(i) with respect to the release of a Property in accordance with Section 2.2, the greater of (a) 120% of the
applicable Allocated Loan Amount and (b) the Loan Pro Rata Share of the applicable Net Sales Proceeds received by Borrower; and 

(ii) with respect to the release of a Property in accordance with Section 2.3, the greater of (a) 130% of the
applicable Allocated Loan Amount and (b) the Loan Pro Rata Share of the applicable Net Sales Proceeds (excluding the Permitted JV Interest established in connection with such release, and the proceeds thereof) received by Borrower in connection
with formation of the applicable Permitted JV. 
 “Release Property” has the meaning set forth in Section 2.2.

 “REMIC” means a “real estate mortgage investment conduit” as defined in Section 860D of the Code. 

  
 42 

 “Rent Roll” has the meaning set forth in Section 4.14(a). 

“Rental Revenues” means, with respect to the Properties, all actual in-place base
rents and expense reimbursements under bona fide Qualified Leases. 
 “Replacement Lender” has the meaning set forth in
Section 1.7(g). 
 “Replacement Lender Notice” has the meaning set forth in Section 1.7(g). 

“Required SPE” means Borrower, JV Pledgor and any Single-Purpose Equityholder. 

“Required Title Update” has the meaning set forth in Section 5.22(g). 

“Restricted Party” means, collectively (a) Borrower, JV Pledgor, Mezzanine Borrower or any respective Subsidiary thereof
and (b) any shareholder, partner, member, non-member manager, any direct or indirect legal or beneficial owner of Borrower or Mezzanine Borrower, but excluding any shareholder, partner, member, non-member manager, any direct or indirect legal
or beneficial owner of Seritage OP or Seritage REIT. 
 “Revenues” means all rents (including percentage rent), rent
equivalents, moneys payable as damages pursuant to a Lease or in lieu of rent or rent equivalents (including all Termination Fees), royalties (including all oil and gas or other mineral royalties and bonuses), income, receivables, receipts,
revenues, deposits (including security, utility and other deposits), accounts, cash, issues, profits, charges for services rendered, and other consideration of whatever form or nature received by or paid to or for the account of or benefit of
Borrower from any and all sources including any obligations now existing or hereafter arising or created out of the sale, lease, sublease, license, concession or other grant of the right of the use and occupancy of property or rendering of services
by Borrower or the grant or withholding of any consent, waiver or other concession relating to any Property Agreement or other matter relating to one or more Properties and proceeds, if any, from business interruption or other loss of income
insurance. Revenues shall not include any JV Revenues. 
 “S&P” means Standard & Poor’s Ratings Services,
a division of the McGraw-Hill Companies, Inc., and its successors. 
 “Sears Hometown
License Agreement” means, solely to the extent related to a Property, that certain License Agreement dated as of November 20, 2008 by and between Sears Holdings Management Corporation, as agent for Sears, Roebuck and Co. and Kmart
Corporation, as licensor, and Sears Authorized Hometown Stores, LLC, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time in accordance with this Agreement. 

“Securitization” means a transaction in which all or any portion of the Loan is deposited into one or more trusts or entities
that issue Certificates to investors, or a similar transaction; and the term “Securitize” and “Securitized” have meanings correlative to the foregoing. 

“Securitization Vehicle” means the issuer of Certificates in a Securitization of the Loan. 

  
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 “Seller Estoppel” means an estoppel delivered by SHLD to the Lender on the
Closing Date in order for Borrower to satisfy one or more of the conditions precedent set forth in Section 8.1(k)(i) and/or Section 8.1(k)(ii), in each case, in form and substance reasonably satisfactory to Lender. 

“Seritage JV Member” has the meaning set forth in Section 2.3(a)(ii). 

“Seritage OP” means Seritage Growth Properties, L.P., a Delaware limited partnership. 

“Seritage REIT” means Seritage Growth Properties, a Maryland real estate investment trust. 

“Servicer” means Strategic Asset Services LLC or such other entity or entities appointed by Lender from time to time to serve
as servicer and/or special servicer of the Loan. If at any time no entity is so appointed, the term “Servicer” shall be deemed to refer to Lender. 

“Severed Loan Documents” has the meaning set forth in Section 7.2(e). 

“SHLD” means Sears Holdings Corporation, a Delaware corporation. 

“SHLD EBITDAR” means, with respect to any Test Period and the Properties, the aggregate net income (which for the purposes of
this calculation shall exclude all rents collected by the SHLD Master Tenant from any Affiliate of SHLD Master Tenant unless such Affiliate is a Tenant at the applicable Properties and also a tenant at similar properties owned or leased by SHLD
and/or its subsidiaries under a master agreement in connection with a national or regional roll-out by such Tenant at Sears stores and/or Kmart stores) or loss for such Test Period calculated with respect to the operations of the Properties on a Property-by-Property or “four wall” basis, determined in accordance with GAAP and adjusted by excluding (1) income tax expense, (2) consolidated interest
expense (net of interest income), (3) depreciation and amortization expense, (4) any income, gains or losses attributable to the early extinguishment or conversion of indebtedness or cancellation of indebtedness, (5) gains or losses
on discontinued operations and asset sales, disposals or abandonments, (6) impairment charges or asset write-offs, including, without limitation, those related to goodwill or intangible assets, Long-Lived Assets, and investments in debt and equity securities, in each case, in accordance with GAAP, (7) any noncash items of expense (other than to the extent such noncash items of expense require or
result in an accrual or reserve for future cash expenses), (8) extraordinary gains or losses, (9) unusual or nonrecurring gains or items of income or loss and (10) SHLD Master Lease Rent for such Test Period; provided that each
of net income and the foregoing adjustments shall be determined using the methodologies and practices of SHLD in effect as of the Closing Date as shown on Schedule K hereto. 

“SHLD EBITDAR Rent Ratio” means, with respect to any Test Period, the quotient of (i) SHLD EBITDAR for such Test Period
divided by (ii) the SHLD Master Lease Rent for such Test Period. 
 “SHLD Master Guaranty” means the
Lease Guaranty, as defined in the SHLD Master Lease, in form and substance satisfactory to Lender, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time in accordance with this Agreement. 

  
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 “SHLD Master Lease” means that certain Master Lease and side letter entered into
in connection therewith, each dated as of the Closing Date, by and among Borrower, as Landlord, and SHLD Master Tenant, as Tenant, in form and substance satisfactory to Lender, as the same may be amended, restated, replaced, supplemented or
otherwise modified from time to time in accordance with this Agreement. 
 “SHLD Master Lease Rent” means, with respect to
any Test Period, the aggregate annualized base rent obligations under the SHLD Master Lease as of the end of such Test Period. 

“SHLD Master Tenant” means, collectively, Kmart Operations, LLC and Sears Operations, LLC. 

“SHLD PSA” means that certain Subscription, Distribution and Purchase and Sale Agreement dated as of June 8, 2015 by and
between SHLD and Seritage REIT, in form and substance satisfactory to Lender, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time in accordance with this Agreement. 

“SHLD TSA” means that certain Transition Services Agreement by and between SHMC and Seritage OP, dated as of the Closing Date
and in form and substance satisfactory to Lender, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time in accordance with this Agreement. 

“SHMC” means Sears Holdings Management Corporation, a Delaware corporation. 

“Simon” means SPG Portfolio Member, LLC. 

“Simon JV” means SPS Portfolio Holdings LLC. 

“Simon JV Agreement” means the Amended and Restated Limited Liability Company Agreement of SPS Portfolio Holdings LLC, dated
as of April 13, 2015, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time in accordance with this Agreement. 

“Simon JV Collateral” means the “Pledged Collateral” as defined in the Simon JV Pledge and Security Agreement. 

“Simon JV Documents” means, collectively, the Simon JV Agreement and the Simon JV Master Lease. 

“Simon JV Interests” means the “JV Interest” as defined in the Simon JV Pledge and Security Agreement. 

“Simon JV Master Lease” means that certain Master Lease by and among SPS Portfolio Holdings LLC as Landlord and Sears,
Roebuck and Co. as Tenant, dated as April 13, 2015, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time in accordance with this Agreement. 

  
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 “Simon JV Pledge and Security Agreement” means that certain Pledge and Security
Agreement, dated as of the date hereof, by Simon JV Pledgor in favor of Lender, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time in accordance with this Agreement. 

“Simon JV Pledgor” means Seritage SPS Holdings LLC, a Delaware limited liability company. 

“Single Member LLC” means a limited liability company that either (x) has only one member, or (y) has multiple
members, none of which is a Single-Purpose Equityholder. 

“Single-Purpose Entity” means a Person that: 

(a) was formed under the laws of the State of Delaware solely for the purpose of (i) in the case of Borrower, owning, holding,
developing, selling, transferring, leasing, managing, operating or otherwise dealing with or disposing of an ownership interest in one or more of the Properties, entering into this Agreement with Lender and performing Borrower’s obligations
under the Loan Documents, refinancing of any of the Properties in connection with a repayment of all or any portion of the Loan, and any and all activities that are necessary, convenient or incidental to the foregoing, (ii) in the case of a Single-Purpose Equityholder, acquiring and holding an ownership interest in Borrower or JV Pledgor or (iii) in the case of a JV Pledgor, owning, holding, selling, transferring and managing of the applicable JV
Interests entering into a joinder to this Agreement with Lender and performing JV Pledgor’s obligations under the Loan Documents, and transacting lawful business that is incident, necessary and appropriate to accomplish the foregoing; 

(b) does not engage in any business unrelated to (i) in the case of the Borrower, owning, holding, selling, transferring, leasing,
managing, operating or otherwise dealing with or disposing of the Properties, (ii) in the case of a Single-Purpose Equityholder, its ownership interest in Borrower or JV Pledgor or (iii) in the case
of a JV Pledgor, owning, holding, selling, transferring and managing the applicable JV Interests; 
 (c) does not own any assets other than
(i) in the case of the Borrower, its interest in the Properties and incidental personal property necessary for the ownership and operation of the Properties (and in the case of Borrower, does not and will not own any assets on which Lender does
not have a Lien, other than excess cash that has been released to Borrower pursuant hereto), (ii) in the case of a Single-Purpose Equityholder, its ownership interest in Borrower or JV Pledgor) or
(iii) in the case a JV Pledgor, the applicable JV Interests (and in the case of JV Pledgor, does not and will not own any assets on which Lender does not have a Lien, other than cash distributions that have been released to or are permitted to
be retained by JV Pledgor pursuant hereto or pursuant to the JV Pledge and Security Agreement); 
 (d) does not have any Debt other than
(i) in the case of Borrower or JV Pledgor, Permitted Debt, or (ii) in the case of a Single-Purpose Equityholder, reasonable and customary administrative expenses and state franchise taxes; 

  
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 (e) maintains (or will cause its Approved Property Manager to maintain) books, accounts, records,
financial statements, stationery, invoices and checks that are separate and apart from those of any other Person (except that such Person’s financial position, assets, results of operations and cash flows may be included in the consolidated
financial statements of an Affiliate of such Person in accordance with GAAP; provided that (i) appropriate notations should be made on any such consolidated financial statements to indicate that such Person’s assets and credit are not
available to satisfy the claims of its Affiliate’s creditors and (ii) such assets shall also be listed on such Person’s own separate balance sheet); 

(f) is subject to and complies with all of the limitations on powers and separateness requirements set forth in the organizational
documentation of such Person as of the Closing Date; 
 (g) holds itself out as being a Person separate and apart from each other Person and
not as a division or part of another Person; 
 (h) conducts its business in its own name; 

(i) exercises reasonable efforts to correct any known misunderstanding actually known to it regarding its separate identity, and maintains an arm’s-length relationship with its Affiliates (other than capital contributions and distributions permitted under the terms of such Person’s organizational documents), and only enters into a contract or
agreement with an Affiliate upon terms and conditions that are commercially reasonable and comparable to those that would be available on an arm’s length basis with unaffiliated third parties; 

(j) except as contemplated by the Loan Documents with respect to any co-borrower hereunder, pays its own liabilities out of its own funds
(provided that the foregoing shall not require any holder of any Equity Interests to make any additional capital contributions to such Person) and reasonably allocates any overhead that is shared with an Affiliate, including paying for shared office
space and services performed by any officer or employee of an Affiliate; 
 (k) does not have any employees; 

(l) conducts its business so that the assumptions made with respect to it that are contained in the Nonconsolidation Opinion shall at all
times be true and correct in all material respects; 
 (m) maintains its assets in such a manner that it will not be costly or difficult to
segregate, ascertain or identify its individual assets from those of any other Person; 
 (n) observes all applicable entity-level formalities necessary to maintain its separate existence; 
 (o) except as contemplated by
the Loan Documents with respect to any co-borrower hereunder (including, without limitation, in a Collateral Account or an Operating Account), does not commingle its assets with those of any other Person, and holds its assets in its own name; 

  
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 (p) does not assume, guarantee or become obligated for the debts of any other Person, and does
not hold out its credit as being available to satisfy the obligations or securities of others, except as contemplated by the Loan Documents with respect to any co-borrower hereunder; 

(q) does not acquire obligations or securities of its direct or indirect equityholders; 

(r) does not pledge its assets to secure the obligations of any other Person and does not make any loans or advances to any other Person,
except as contemplated by the Loan Documents with respect to any co-borrower hereunder; 
 (s) maintains adequate capital in light of its
contemplated business operations (provided that the foregoing shall not require such Person’s partners, members or shareholders to make any additional capital contributions to such Person); 

(t) has two Independent Managers on its board of directors or board of managers, or has a
Single-Purpose Equityholder with two Independent Managers on such Single-Purpose Equityholder’s board of directors or board of managers, and has organizational
documents that (i) provide that the Independent Managers consider only the interests of the Required SPE, including its creditors, and shall have no fiduciary duties to the Required SPE’s equityholders (except to the extent of their
respective interests in the Required SPE), and (ii) prohibit the replacement of any Independent Manager without Cause and without giving at least five Business Days’ prior written notice to Lender and the Rating Agencies (except in the
case of the death, legal incapacity, or voluntary non-collusive resignation of an Independent Manager, in which case no prior notice to Lender or the Rating Agencies shall be required in connection with the
replacement of such Independent Manager with a new Independent Manager that is provided by any of the companies listed in the definition of “Independent Manager”); 

(u) if such entity is a Single Member LLC, has organizational documents that provide that upon the occurrence of any event that causes its
sole member to cease to be a member while the Loan is outstanding, at least one of its Independent Managers shall automatically be admitted as the sole member of the Single Member LLC and shall preserve and continue the existence of the Single
Member LLC without dissolution; and 
 (v) files its own tax returns separate from those of any other Person, except to the extent it is
treated as a “disregarded entity” for tax purposes and is not required to file tax returns under applicable law, and pays any taxes required to be paid under applicable law only from its own funds (provided that the foregoing shall not
require such Person’s partners, members or shareholders to make any additional capital contributions to such Person); 
 (w) except to
the extent expressly permitted by the Loan Documents, shall not dissolve, liquidate, consolidate, merge or sell all or substantially all of its assets; 

(x) has by-laws or an operating agreement, or has a
Single-Purpose Equityholder with by-laws or an operating agreement, which provides that, for so long as the 

  
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Loan is outstanding, such Person shall not take or consent to any of the following actions except to the extent expressly permitted in this Agreement and the other Loan Documents: 

(i) the dissolution, liquidation, consolidation, merger or sale of all or substantially all of its assets (and, in the case of
a Single-Purpose Equityholder, the assets of the Required SPE); 
 (ii) the
engagement by such Person (and, in the case of a Single-Purpose Equityholder, the engagement by the Required SPE) in any business other than the acquisition, development, management, leasing, ownership,
transfer, leasing, managing, maintenance and operation of the Properties and activities incidental thereto (and, in the case of a Single-Purpose Equityholder, activities incidental to the acquisition and
ownership of its interest in the Required SPE); 
 (iii) the filing, or consent to the filing, of a bankruptcy or insolvency
petition, any general assignment for the benefit of creditors or the institution of any other insolvency proceeding, the seeking or consenting to the appointment of a receiver, liquidator, assignee, trustee, sequestrator, custodian or any similar
official in respect of such Person, admitting in writing such Person’s inability to pay its debts generally as they become due, or the taking of any action in furtherance of any of the foregoing, in each case, in respect of itself or, in the
case of a Single-Purpose Equityholder, in respect of Borrower, without the affirmative vote of both of its Independent Managers; and 

(iv) any amendment or modification of any provision of its (and, in the case of a
Single-Purpose Equityholder, Borrower’s) organizational documents relating to qualification as a “Single-Purpose Entity” without the prior written consent
of the Lender. 
 “Single-Purpose Equityholder” means, with respect to any the
Required SPE that is a limited partnership, a Single-Purpose Entity that (x) is a limited liability company or corporation formed under the laws of the State of Delaware, (y) owns at least a 1%
direct equity interest in the Required SPE, and (z) serves as the general partner or managing member of the Required SPE. 

“Spread” means: 

(i) with respect to the A-1 Notes, initially, 3.9861%, and with respect to the A-2 Notes, initially 4.6500%; and 

(ii) following the bifurcation of any Note into multiple Note Components pursuant to Section 1.1(c), the weighted
average of the Component Spreads of such Note Components at the time of determination, weighted on the basis of the corresponding outstanding principal balances of such Note Components at the time of determination. 

“Spread Maintenance Expiration Date” shall mean with respect to any prepayment of the Loan: 

(i) with respect to a payment in full of the Loan after the end of the Lockout Period, January 9, 2018; 

  
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 (ii) with respect to any permitted partial prepayment of the Loan in accordance
with the terms of this Agreement, up to an aggregate principal amount equal to 35.0% of the Loan Amount, January 9, 2018; 

(iii) with respect to any permitted partial prepayment of the Loan in accordance with the terms of this Agreement in excess of
the threshold provided in clause (ii) above, up to an aggregate principal amount equal to 15.0% of the Loan Amount, July 9, 2019; 

(iv) with respect to any principal payment on the Loan during the continuance of an Event of Default, January 9, 2018; or

 (v) if a prepayment permitted pursuant to Section 2.1(c) would cause the aggregate principal prepayments of
the Loan to exceed 50% of the Loan Amount, July 9, 2019. 
 “Spread Maintenance Premium” means the sum of
(i) with respect to any prepayment of the Loan evidenced by the A-1 Notes (a) permitted in accordance with the terms of this Agreement or (b) during the continuance of an Event of Default, an amount equal to the product of
(A) the principal amount so prepaid, times (B) the applicable Spread, times (C) 1/360, times (D) the number of days from (but excluding) the conclusion of the Interest Accrual Period in which such prepayment
is made through and including the applicable Spread Maintenance Expiration Date plus (ii) with respect to any prepayment of the Loan evidenced by the A-2 Notes (a) permitted in accordance with the terms of this Agreement or
(b) during the continuance of an Event of Default, an amount equal to the product of (A) the principal amount so prepaid, times (B) the applicable Spread, times (C) 1/360, times (D) the number of days
from (but excluding) the conclusion of the Interest Accrual Period in which such prepayment is made through and including the applicable Spread Maintenance Expiration Date; provided that, in each case, no Spread Maintenance Premium shall be
payable with respect to Excluded Prepayments. 
 “Strike Rate” means (i) with respect to the initial term of the Loan,
3.5% and (ii) with respect to any Extension Term, the greater of (a) 3.5% and (b) the strike rate necessary to produce a debt service coverage ratio equal to 1.20x (determined based on, as of any date of determination, (1) the
weighted average of the Mortgage Loan Spread and the Mezzanine Loan Spread as of such date, (2) the sum of (A) the Principal Indebtedness plus (B) the Mezzanine Loan Principal Indebtedness as of such date and (3) In-Place
NOI for the most recently ended Test Period). 
 “Subordination of Property Management Agreement” means (i) that
certain consent and agreement of manager and subordination of management agreement executed by Borrower and Seritage Management LLC as of the Closing Date and (ii) that certain consent and agreement of manager and subordination of transition
services agreement executed by Borrower and SHMC as of the Closing Date and (iii) any other agreement executed by Borrower and any Approved Property Manager from time to time pursuant to which the applicable Approved Management Agreement and
all fees thereunder (including any incentive fees) are subject and subordinate to the Indebtedness, in each case, as the same may be amended, restated, replaced, supplemented or otherwise modified from time to time in accordance with this Agreement.

  
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 “Subsidiary” of any Person shall mean and include (a) any corporation more
than 50% of whose capital stock of any class or classes having by the terms thereof ordinary voting power to elect a majority of the directors of such corporation (irrespective of whether or not at the time capital stock of any class or classes of
such corporation shall have or might have voting power by reason of the happening of any contingency) is at the time owned by such Person directly or indirectly through Subsidiaries and (b) any limited liability company, partnership,
association, joint venture or other entity of which such Person directly or indirectly through Subsidiaries has more than a 50% equity interest at the time. 

“Survey” means, with respect to each Property, a current land title survey of such Property, certified to Borrower, the title
company issuing the Title Insurance Policies and Lender and their respective successors and assigns, in form and substance reasonably satisfactory to Lender. 

“Taxes” means all real estate and personal property taxes, assessments, fees, taxes on rents or rentals, water rates or sewer
rents, facilities and other governmental, municipal and utility district charges or other similar taxes or assessments now or hereafter levied or assessed or imposed against any Property or Borrower with respect to the Property or rents therefrom or
that may become Liens upon any Property, without deduction for any amounts reimbursable to Borrower by third parties. 

“Tenant” means any Person liable by contract or otherwise to pay monies (including a percentage of gross income, revenue or
profits) pursuant to a Lease. 
 “Tenant Improvements” means, collectively, (i) tenant improvements to be undertaken
for any Tenant that are required to be completed by or on behalf of Borrower pursuant to the terms of such Tenant’s Lease, and (ii) tenant improvements paid or reimbursed through allowances to a Tenant pursuant to such Tenant’s Lease.

 “Tenant Notice” has the meaning set forth in Section 3.1(a). 

“Terminated Lender” has the meaning set forth in Section 1.7(g). 

“Termination Fee” has the meaning set forth in Section 3.5(d). 

“Test Period” means each 12-month period ending on the last day of any Fiscal
Quarter. 
 “Third Party In-Place NOI” means, with respect to any Test Period, In-Place NOI, as adjusted to reflect solely Operating Income generated by Third Party Leases. 

“Third Party In-Place NOI Threshold” means, with respect to any Test Period, an
amount equal to the product of (i) 1.10 multiplied by (ii) annual debt service on the aggregate Principal Indebtedness and Mezzanine Loan Principal Indebtedness as of the end of such Test Period assuming an interest rate
equal to the sum of (a) the One-Year Forward LIBOR Rate as of the applicable date of determination plus (b) the weighted average of the Mortgage Loan Spread and the Mezzanine Loan Spread. 

“Third Party Lease” means each Lease entered into in accordance with the terms of this Agreement other than the SHLD Master
Lease and any Affiliate Lease. 

  
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 “Title Insurance Policy” means, with respect to each Property, an American Land
Title Association lender’s title insurance policy or a comparable form of lender’s title insurance policy approved for use in the applicable jurisdiction, in form and substance reasonably satisfactory to Lender. 

“Title Insurance Pool” means each group of Properties whose Title Insurance Policies are subject to a “tie-in” or
similar endorsement (ALTA 12 or its equivalent) aggregating title insurance coverage with respect to such Properties as designated on Schedule R hereto 

“Title Insurance Pool Amount” means the aggregate amount of title insurance coverage under the Title Insurance Policies
relating to a Title Insurance Pool. 
 “Threshold Amount” means, with respect to any Property, an amount equal to the
lesser of (i) $10,000,000 and (ii) 30% of the sum of (a) the Allocated Loan Amount plus (b) the Mezzanine Loan Allocated Loan Amount with respect to such Property. 

“TI/LC Reserve Account” has the meaning set forth in Section 3.5(a). 

“Trade Payables” means unsecured amounts (other than pursuant to statutory or other involuntary liens that are Permitted
Liens) payable by or on behalf of Borrower for or in respect of the operation of the Properties in the ordinary course or JV Pledgor for or in respect of the management of the JV Interests in the ordinary course and that would under GAAP be regarded
as ordinary expenses, including amounts payable to managers under an Approved Management Agreement, Guarantor or other parent entities for services rendered or obtained (including indirectly, through the SHLD TSA) and suppliers, vendors,
contractors, mechanics, materialmen or other Persons providing property or services to the Properties, Borrower or JV Pledgor and the capitalized amount of any ordinary-course financing leases. 

“Transaction” means, collectively, the transactions contemplated and/or financed by the Loan Documents. 

“Transfer” means the sale or other whole or partial conveyance of all or any portion of any of the Collateral or the JV
Collateral or any direct or indirect interest therein to a third party, including granting of any purchase options, rights of first refusal, rights of first offer or similar rights in respect of any portion of the Collateral or the JV Collateral or
the subjecting of any portion of the Collateral or the JV Collateral to restrictions on transfer; except that the conveyance of a space lease at any Property in accordance herewith shall not constitute a Transfer. 

“Unfunded Obligations” means the items described in Schedule E-1. 

“Unfunded Obligations Account” has the meaning set forth in Section 3.9(a). 

“Use” means, with respect to any Hazardous Substance, the generation, manufacture, processing, distribution, handling,
possession, use, discharge, placement, treatment, disposal, disposition, removal, abatement, recycling or storage of such Hazardous Substance or transportation of such Hazardous Substance. 

  
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 “U.S. Tax” means any present or future tax, assessment or other charge or levy
imposed by or on behalf of the United States of America or any taxing authority thereof. 
 “Waste” means any material
physical abuse or destructive physical use (whether by action or inaction) of any Property. 
 (b) Rules of Construction. Unless
otherwise specified, (i) all references to sections, schedules and exhibits are to sections, schedules and exhibits in or to this Agreement, (ii) all meanings attributed to defined terms in this Agreement shall be equally applicable to
both the singular and plural forms of the terms so defined, (iii) “including” means “including, but not limited to”, (iv) “mortgage” means a mortgage, deed of trust, deed to secure debt or similar instrument,
as applicable, and “mortgagee” means the secured party under a mortgage, deed of trust, deed to secure debt or similar instrument, (v) the words “hereof,” “herein,” “hereby,” “hereunder” and
words of similar import when used in this Agreement shall refer to this Agreement as a whole and not to any particular provision, article, section or other subdivision of this Agreement, (vi) unless otherwise indicated, all references to
“this Section” shall refer to the Section of this Agreement in which such reference appears in its entirety and not to any particular clause or subsection or such Section, (vii) the use of the phrases “an Event of Default
exists”, “during the continuance of an Event of Default” or similar phrases in the Loan Documents shall not be deemed to grant Borrower any right to cure an Event of Default except as expressly provided herein, and (viii) terms
used herein and defined by cross-reference to another agreement or document shall have the meaning set forth in such other agreement or document as of the Closing Date, notwithstanding any subsequent amendment
or restatement of or modification to such other agreement or document. Except as otherwise indicated, all accounting terms not specifically defined in this Agreement shall be construed in accordance with GAAP, as the same may be modified in this
Agreement. 
 ARTICLE 1 

GENERAL TERMS 

Section 1.1 The Loan; Term. 

(a) The Loan shall be advanced in accordance with the provisions of Section 1.7 hereof and shall initially be represented by the
A-1 Note, the A-2-1 Note and the A-2-2 Note that shall bear interest as described in this Agreement at the applicable per annum rate as provided in Section 1.2(a). Each of the Notes and the interests of each Lender in the Loan (including
without limitation the Initial Advance and any Future Advances) and the Loan Documents shall be pari passu, of equal rank and dignity without priority or preference of one over the other. Borrower hereby acknowledges and agrees that the obligations
of each Lender hereunder are several and not joint. Interest payable hereunder shall be computed on the basis of a 360-day year and the actual number of days elapsed in the related Interest Accrual Period.

 (b) The Loan shall be secured by the Collateral and the JV Collateral pursuant to the Mortgages and the other Loan Documents. 

  
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 (c) Upon written notice from Lender to Borrower, any Note will be deemed to have been subdivided
into multiple components (“Note Components”). Each Note Component shall have such notional balance as Lender shall specify in such notice and an interest rate equal to the sum of LIBOR plus such amount as Lender shall specify in
such notice (“Component Spread”); provided that the sum of the notional balances of all Note Components shall equal the then-current Principal Indebtedness evidenced by the applicable
Note, and the weighted average of the Component Spreads, weighted on the basis of their respective principal balances, shall initially equal the percentage set forth in clause (i) of the definition of “Spread” applicable to
such Note. Borrower shall be treated as the obligor with respect to each of the Note Components, and Borrower acknowledges that each Note Component may be individually beneficially owned by a separate Person. The Note Components need not be
represented by separate physical Notes, but if requested by Lender and subject in each case to the return to Borrower of the Note that is being replaced by the Note Components, each Note Component shall be represented by a separate physical Note, in
which case Borrower shall execute and deliver to Lender each such Note promptly following Borrower’s receipt of an execution copy thereof. 

(d) Borrower shall have two successive options to extend the scheduled Maturity Date of the Loan to the Payment Date in the month containing
the one-year anniversary of the Maturity Date as theretofore in effect (the period of each such extension, an “Extension Term”); provided that, as a condition to each Extension Term
(i) Borrower shall deliver to Lender written notice of such extension at least 30 days and not more than 90 days prior to the Maturity Date as theretofore in effect; (ii) no Event of Default shall be continuing on either the date of such
notice or the Maturity Date as theretofore in effect; (iii) the Debt Yield for the Properties for the Test Period ending immediately prior to the Maturity Date as theretofore in effect shall be no less than the applicable Debt Yield Threshold;
provided that if the Debt Yield is less than the applicable Debt Yield Threshold, Borrower shall be permitted to prepay the Loan (together with a simultaneous pro rata prepayment by Mezzanine Borrower of the Mezzanine Loan) in the amount
required to cause the Debt Yield to equal the applicable Debt Yield Threshold, which prepayment shall be made pursuant to, and in accordance with, Section 2.1(e) but without the notice required thereunder; (iv) on the Maturity Date
theretofore in effect, the percentage of Rental Revenues generated by the SHLD Master Lease shall be less than the applicable Extension Rental Revenue Threshold; (v) on or before the Maturity Date theretofore in effect, Borrower shall have
obtained an Interest Rate Cap Agreement for the applicable Extension Term and collaterally assigned such Interest Rate Cap Agreement to Lender pursuant to an Assignment of Interest Rate Cap Agreement; (vi) on or before the Maturity Date
theretofore in effect, Borrower shall have paid the Extension Fee; (vii) provided that Lender shall have delivered to Borrower reasonably detailed invoices therefor not less than three (3) Business Days prior to the Maturity Date as
theretofore in effect, Borrower shall have reimbursed Lender for all reasonable out-of-pocket expenses incurred by Lender in connection with such extension; and
(viii) the Mezzanine Loan maturity date shall have been simultaneously extended to the same date as the new Maturity Date of the Loan. If Borrower fails to exercise any extension option in accordance with the provisions of this Agreement, such
extension option, and any subsequent extension option hereunder, will automatically cease and terminate. 

  
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 Section 1.2 Interest and Principal. 

(a) On each Payment Date Borrower shall pay to Lender (to be applied to each Note on a pro rata, pari passu basis) (i) at any time the
Loan is a LIBOR Loan (A) interest on the Principal Indebtedness evidenced by the A-1 Notes for the applicable Interest Accrual Period at a rate per annum equal to (i) the sum of LIBOR, determined as of the Interest Determination Date
immediately preceding such Interest Accrual Period, plus the applicable Spread and (B) interest on the Principal Indebtedness evidenced by the A-2 Notes for the applicable Interest Accrual Period
at a rate per annum equal to (i) the sum of LIBOR, determined as of the Interest Determination Date immediately preceding such Interest Accrual Period, plus the applicable Spread, and (ii) at any time the Loan is a Prime Rate Loan,
the sum of the Prime Rate, determined as of the Interest Determination Date immediately preceding such Interest Accrual Period, plus the Prime Rate Spread (except that in each case, interest shall be payable on the Indebtedness, including due
but unpaid interest, at the Default Rate with respect to any portion of such Interest Accrual Period falling during the continuance of an Event of Default). As of the Closing Date, the Loan is a LIBOR Loan, and except as provided in
Section 1.2(e), the Loan shall at all times be a LIBOR Loan. Notwithstanding the foregoing, on the Closing Date, Borrower shall pay interest on A-1 Notes from and including the Closing Date through the end of the first Interest Accrual
Period, in lieu of making such payment on the first Payment Date following the Closing Date. 
 (b) The entire outstanding Principal
Indebtedness, together with all interest thereon through the end of the Interest Accrual Period in which the Maturity Date falls (calculated as if such Principal Indebtedness were outstanding for the entire Interest Accrual Period) and all other
amounts then due under the Loan Documents shall be due and payable by Borrower to Lender on the Maturity Date. The payment by Borrower of the Principal Indebtedness on the Maturity Date and any other prepayments of the Loan permitted under this
Agreement shall be applied to the Notes on a pro rata, pari passu basis. 
 (c) If all or any portion of the Principal Indebtedness is paid
to Lender prior to the initial Maturity Date during the continuance of an Event of Default, Borrower shall pay to Lender an amount equal to the applicable Spread Maintenance Premium. Amounts received in respect of the Indebtedness during the
continuance of an Event of Default shall be applied toward interest, principal and other components of the Indebtedness (in such order as Lender shall determine) before any such amounts are applied toward payment of Spread Maintenance Premium, with
the result that Spread Maintenance Premium shall accrue as the Principal Indebtedness is repaid but no amount received from Borrower shall constitute payment of a Spread Maintenance Premium until the remainder of the Indebtedness shall have been
paid in full. Borrower acknowledges that (i) a prepayment prior to the initial Maturity Date will cause damage to Lender; (ii) the Spread Maintenance Premium is intended to compensate Lender for the loss of its investment and the expense
incurred and time and effort associated with making the Loan, which will not be fully repaid if the Loan is prepaid; (iii) it will be extremely difficult and impractical to ascertain the extent of Lender’s damages caused by a prepayment
after an acceleration or any other prepayment prior to the initial Maturity Date; and (iv) the Spread Maintenance Premium represents Lender’s and Borrower’s reasonable estimate of Lender’s damages from the prepayment and is not a
penalty. 
 (d) Any payments of interest and/or principal not paid when due hereunder shall bear interest at the applicable Default Rate
and, in the case of all payments due hereunder 

  
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other than the repayment of the Principal Indebtedness on the Maturity Date, when paid shall be accompanied by a late fee in an amount equal to the lesser of 3.0% of such unpaid sum and the
maximum amount permitted by applicable law, in order to defray a portion of the expense incurred by Lender in handling and processing such delinquent payment and to compensate Lender for the loss of the use of such delinquent payment. 

(e) In the event that Lender shall reasonably determine that by reason of circumstances affecting the interbank Eurodollar market, adequate
and reasonable means do not exist for ascertaining LIBOR in accordance with the definition thereof, then the Loan shall be converted to a Prime Rate Loan effective as of the commencement of the Interest Accrual Period following the date of such
determination, and Lender shall give notice thereof to Borrower by telephone at least one day prior to the applicable Interest Determination Date (which notice shall thereafter be promptly confirmed by Lender in writing). If, pursuant to this
Section, any portion of the Loan has been converted to a Prime Rate Loan and Lender thereafter reasonably determines that the events or circumstances that resulted in such conversion are no longer applicable, the Loan shall be converted to a LIBOR
Loan effective as of the commencement of the Interest Accrual Period following the date of such determination, and Lender shall give notice thereof to Borrower by telephone at least one day prior to the applicable Interest Determination Date (which
notice shall thereafter be promptly confirmed by Lender in writing). Borrower shall pay to Lender, within five (5) Business Days following written demand, any additional amounts necessary to compensate Lender for any reasonable out-of-pocket costs incurred by Lender in making any conversion in accordance with this Section, including interest or fees payable by Lender to lenders of funds obtained by
it in order to maintain a LIBOR Loan hereunder. In the event the Note has been divided into multiple Notes or Note Components pursuant to Section 1.1(c), upon any conversion of the Loan pursuant to this Section the interest rate
applicable to such Notes or Note Components shall be proportionately adjusted to reflect such conversion. Except as provided in this Section, the Loan shall at all times be a LIBOR Loan. In no event shall Borrower have the right to convert a LIBOR
Loan to a Prime Rate Loan. 
 Section 1.3 Method and Place of Payment. Except as otherwise specifically provided in this
Agreement, all payments and prepayments under this Agreement and the Notes (including any deposit into the Cash Management Account pursuant to Section 3.2(c)) shall be made to Lender not later than 1:00 p.m., New York City time, on the
date when due and shall be made in lawful money of the United States of America by wire transfer in federal or other immediately available funds to the account specified from time to time by Lender. Any funds received by Lender after such time shall
be deemed to have been paid on the next succeeding Business Day. Lender shall notify Borrower in writing of any changes in the account to which payments are to be made. If the amount received from Borrower (or from the Cash Management Account
pursuant to Section 3.2(b)) is less than the sum of all amounts then due and payable hereunder, such amount shall be applied, at Lender’s sole discretion, either toward the components of the Indebtedness (e.g., interest,
principal and other amounts payable hereunder) and the Notes and Note Components, in such sequence as Lender shall elect in its sole discretion, or toward the payment of Property expenses. Whenever any payment to be made hereunder or under any other
Loan Document shall be stated to be due on a day that is not a Business Day, the due date thereof shall be the immediately preceding Business Day. 

  
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 Section 1.4 Taxes; Regulatory Change. 

(a) Borrower shall indemnify Lender and hold Lender harmless from and against any present or future stamp, documentary, transfer, excise,
property or other similar taxes or other similar charges now or hereafter imposed, levied, collected, withheld or assessed by any Governmental Authority by reason of the execution and delivery of the Loan Documents or any Notes issued thereunder and
any consents, waivers, amendments and enforcement of rights under the Loan Documents. 
 (b) Reasonably promptly following Borrower’s
request, any Lender at the time the initial advance is made shall complete and deliver to Borrower a duly executed Form W-9 certifying that is not subject to backup withholding or an appropriate IRS Form W-8,
as applicable. If Borrower is required by law to withhold or deduct any amount from any payment hereunder in respect of any Borrower Tax, Borrower shall withhold or deduct the appropriate amount, remit such amount to the appropriate Governmental
Authority and pay to the Lender and each Person to whom there has been an Assignment or Participation of a Loan (Lender and all such Persons, collectively, “Lender Parties” and each individually, a “Lender Party”)
such additional amounts as are necessary in order that the net payment of any amount due hereunder, after deduction for or withholding in respect of any Borrower Tax imposed with respect to such payment, will not be less than the amount stated in
this Agreement to be then due and payable; except that the foregoing obligation to pay such additional amounts shall not apply to (i) Inapplicable Taxes; (ii) any amount of U.S. Tax in effect and applicable to payments to Lender on the
date of this Agreement, provided that Borrower requests from Lender, if necessary to prevent the imposition of such U.S. Tax, a Form W-9 or W-8, as applicable, reasonably in advance of when withholding in respect of such U.S. Tax would be required
absent the receipt of such form; (iii) with respect to payments made under this Agreement to any Lender Party to whom there has been an Assignment or Participation, any amount of U.S. Tax imposed, to the extent that the receipt of additional
amounts in respect of such U.S. Tax would entitle the Lender Party to receive greater payment than the assignor would have been entitled to receive with respect to the rights assigned, unless such assignment shall have been made at a time when the
circumstances giving rise to such greater payment did not exist; (iv) any U.S. federal withholding taxes imposed under FATCA; or (v) any amount of Borrower Taxes imposed solely by reason of the failure by an assignee to comply with
Section 9.7(c). If Borrower shall fail to pay any Borrower Taxes or other amounts that Borrower is required to pay pursuant to this Section, and Lender or any Person to whom there has been an Assignment or Participation of a Loan pays
the same, Borrower shall reimburse Lender or such Person promptly following demand therefore in the currency in which such taxes or other amounts are paid, whether or not such taxes were correctly or legally asserted, together with interest thereon
from and including the date of payment to but excluding the date of reimbursement at a rate per annum equal to the Default Rate. 
 (c)
Within 30 days after paying any amount from which it is required by law to make any deduction or withholding, and within 30 days after it is required by law to remit such deduction or withholding to any relevant Governmental Authority, Borrower
shall deliver to Lender satisfactory evidence of such deduction, withholding or payment (as the case may be). 
 (d) If, as a result of any
Regulatory Change, any reserve, special deposit or similar requirements relating to any extensions of credit or other assets of, or any deposits with, Lender or any holder of all or a portion of the Loan is imposed, modified or deemed applicable

  
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and the result is to increase the cost to such Lender or such holder of making or holding the Loan, or to reduce the amount receivable by Lender or such holder hereunder in respect of any portion
of the Loan by an amount deemed by Lender or such holder to be material (such increases in cost and reductions in amounts receivable, but excluding any reserve requirement that is reflected in LIBOR, “Increased Costs”), then
Borrower agrees that it will pay to Lender or such holder upon Lender’s or such holder’s request such additional amount or amounts as will compensate Lender and/or such holder for such Increased Costs to the extent that such Increased
Costs are reasonably allocable to the Loan. Lender will notify Borrower in writing of any event occurring after the Closing Date that will entitle Lender or any holder of the Loan to compensation pursuant to this Section as promptly as
practicable after it obtains knowledge thereof and determines to request such compensation. If such Lender shall fail to notify Borrower of any such event within nine months following the end of the month during which such event occurred, then
Borrower’s liability for any amounts described in this Section incurred by such Lender as a result of such event shall be limited to those attributable to the period occurring subsequent to the date that is nine months prior to the date
upon which such Lender actually notified Borrower of the occurrence of such event. Notwithstanding anything in this Section 1.4 to the contrary, in no event shall Borrower be required to compensate Lender or any holder of the Loan for
any Inapplicable Taxes or for any portion of the income or franchise taxes of Lender or such holder, whether or not attributable to payments made by Borrower. If a Lender requests compensation under this Section, Borrower may, by notice to Lender,
require that such Lender furnish to Borrower a statement setting forth in reasonable detail the basis for requesting such compensation and the method for determining the amount thereof. 

Section 1.5 Interest Rate Cap Agreements. 

(a) On or prior to the Closing Date, Borrower shall obtain, and thereafter maintain in effect, an Interest Rate Cap Agreement, which shall be
coterminous with the initial term of the Loan and have a notional amount equal to the Loan Amount. Any initial Interest Rate Cap Agreement shall have a strike rate equal to or less than the Strike Rate. 

(b) If Borrower exercises any of its options to extend the term of the Loan pursuant to Section 1.1(d), on or prior to the
commencement of the applicable Extension Term, Borrower shall obtain, and thereafter maintain in effect, an Interest Rate Cap Agreement having (x) a term coterminous with such Extension Term, (y) a notional amount at least equal to the
Principal Indebtedness as of the first day of such Extension Term, and (z) a strike rate equal to or less than the Strike Rate. 
 (c)
Borrower shall collaterally assign to Lender pursuant to an Assignment of Interest Rate Cap Agreement all of its right, title and interest in any and all payments under each Interest Rate Cap Agreement and shall deliver to Lender an executed
counterpart of such Interest Rate Cap Agreement and obtain the consent of the Acceptable Counterparty to such collateral assignment (as evidenced by the Acceptable Counterparty’s execution of such Collateral Assignment of Interest Rate Cap
Agreement). 
 (d) Borrower shall comply, in all material respects, with all of Borrower’s obligations under the terms and provisions
of each Interest Rate Cap Agreement. All amounts paid under an Interest Rate Cap Agreement shall be deposited directly into the Cash 

  
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Management Account. Borrower shall take all actions reasonably requested by Lender to enforce Lender’s rights under the Interest Rate Cap Agreement in the event of a default by the
counterparty thereunder and shall not waive, amend or otherwise modify any of its rights thereunder without Lender’s consent (which shall not be unreasonably withheld). 

(e) If, at any time during the term of the Loan, the counterparty to the Interest Rate Cap Agreement then in effect ceases to be an Acceptable
Counterparty and thereafter fails to abide by the requirements set forth in such Interest Rate Cap Agreement with respect to ratings downgrades, then Borrower shall promptly after notice from Lender demanding such replacement, obtain a replacement
Interest Rate Cap Agreement satisfying the requirements set forth in paragraph (a) or (b) above, as applicable, with a counterparty that is an Acceptable Counterparty. 

(f) At Closing and at any time that Borrower obtains a replacement Interest Rate Cap Agreement pursuant to this Section, Borrower shall
deliver to Lender a customary legal opinion or opinions from counsel to the applicable Acceptable Counterparty (which counsel may be internal counsel) in form and substance reasonably satisfactory to Lender. 

Section 1.6 Release. Upon payment of the Indebtedness in full when permitted or required hereunder, Lender shall execute
instruments prepared by Borrower and reasonably satisfactory to Lender, which, at Borrower’s election and at Borrower’s sole cost and expense either (a) release and discharge all Liens on all Collateral or the JV Collateral securing
payment of the Indebtedness (subject to Borrower’s obligation to pay any associated fees and expenses), including all balances in the Collateral Accounts; or (b) assign such Liens (and the Loan Documents) to a new lender designated by
Borrower. Any release or assignment provided by Lender pursuant to this Section shall be without recourse, representation or warranty of any kind, except for, solely to the extent required by the applicable assignee, customary representations
and warranties by Lender as to Lender’s due authorization, execution and delivery of the assignment and Lender’s ownership of the Lien and any assigned Loan Documents free and clear of any Liens or prior assignments, in each case, granted
by Lender. In addition, upon payment of the Indebtedness in full when permitted or required hereunder, at Borrower’s sole cost and expense, Lender shall execute and deliver Lender’s written consent to the rescission of the Tenant Notices
required pursuant to Section 3.1(a). 
 Section 1.7 Advances. 

(a) On the Closing Date, subject to the terms and conditions of this Agreement, Lender shall advance the Initial Advance to Borrower. 

(b) During the Future Advance Availability Period, subject to the terms and conditions contained herein and except as provided in
Section 1.7(c), the Future Advance Amount will be available to Borrower solely to fund Approved Redevelopment Costs, and shall be funded to Borrower on the Funding Date specified in the Funding Request. From time to time, Borrower may
submit a Funding Request to Lender specifying the amount to be advanced (each, a “Future Advance”) and a date (each, a “Funding Date”) not less than 15 days nor more than 30 days after Lender’s receipt of such
Funding Request on which Borrower would like such advance to be made, which Funding Request shall be subject to Lender’s review and approval 

  
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(such approval not to be unreasonably withheld, conditioned or delayed); provided that Borrower shall not be entitled to more than one advance of the Future Advance Amount during any
calendar month (it being understood that any individual Future Advance may, if the applicable conditions are satisfied, include funds for multiple Redevelopment Projects). The Future Advance Lenders shall advance from the Future Advance Amount on
each applicable Funding Date to the Operating Account, the applicable Approved Redevelopment Pro Rata Share of the Approved Redevelopment Costs set forth in such Funding Request, subject to the satisfaction of the following conditions precedent on
or prior to the applicable Funding Date: 
 (i) no monetary Default, material
non-monetary Default or Event of Default shall have occurred and be continuing; 

(ii) prior to the initial Funding Request with respect to a Redevelopment Project, Borrower shall have satisfied the conditions
set forth in Section 5.22(b); 
 (iii) prior to each Funding Request with respect to a Redevelopment Project,
Borrower shall have satisfied the conditions set forth in Section 5.22(c); and 
 (iv) prior to the final Funding
Request with respect to a Redevelopment Project, Borrower shall have satisfied the condition set forth in the first sentence of Section 5.22(f). 

(c) Regardless of whether or not the Borrower shall have given Lender any direction as to the party to whom any advance shall be disbursed,
during the continuance of an Event of Default, Lender may make any advance or portion thereof (up to the amount provided to be paid to the applicable Person in the Funding Request) directly to any Person due payment in connection with a Funding
Request, and the execution of this Agreement by Borrower constitutes an irrevocable direction and authorization to so advance during the continuance of an Event of Default, at the election of Lender. No further direction or authorization from
Borrower shall be necessary to make such direct advances to each such other Person, and all such direct advances shall satisfy the obligations of Lender under this Agreement and shall be and become a part of the Principal Indebtedness as fully as if
made directly to Borrower, regardless of the disposition thereof by such Person. 
 (d) No advance shall constitute an approval or
acceptance by Lender of any construction work, a waiver of any condition precedent to any further advance, or preclude Lender from thereafter requiring the Borrower to satisfy such condition precedent which was not waived in accordance with the
terms hereof. No waiver by Lender of any condition precedent or obligation shall preclude Lender from requiring such condition or obligation to be met prior to making any other advance or from thereafter declaring the failure to satisfy such
condition or obligation to be a Default. 
 (e) So long as no Event of Default shall have occurred and be continuing, upon Borrower’s
written request at any time during the last 120 days of the Future Advance Availability Period, Future Advance Lender shall, on the last Business Day in the Future Advance Availability Period, advance from the Future Advance Amount into the
Redevelopment Project Reserve Account the entire then undrawn portion of the Future Advance Amount or such lesser amount as Borrower shall specify in such written request. 

  
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 (f) Notwithstanding anything to the contrary contained herein, the Initial Advance Lender shall
have no obligation hereunder to make any Future Advances, it being acknowledged by Borrower that the obligation to make any Future Advance shall solely be the obligation of each Future Advance Lender (on a several basis). In the event that any
Future Advance Lender defaults (in each case, a “Defaulting Lender”) in its obligation to fund (a “Funding Default”) any Future Advance following satisfaction by the Borrower of the conditions precedent described in
this Section 1.7, no rights or obligations of the Initial Advance Lender or any other Lender shall be increased or otherwise affected, and performance by the Borrower and the JV Pledgors of their respective obligations hereunder and the
other Loan Documents shall not be excused or otherwise modified as a result of any Funding Default (Borrower hereby expressly agreeing that it waives any right of set-off or similar rights with respect to any Funding Default). In furtherance of the
foregoing, Borrower agrees that no claim may be made by Borrower or any other Person claiming by or through Borrower against Initial Advance Lender, any non-defaulting Future Advance Lender or the directors, officers, employees, attorneys or agents
(including Servicer and any other servicer or trustee in connection with a Securitization) of the Initial Advance Lender or any non-defaulting Future Advance Lender for any damages of any nature whatsoever in
respect of any claim whatsoever for a Funding Default by a Defaulting Lender, and Borrower hereby waives, releases and agrees to hold harmless the Initial Advance Lender and any non-defaulting Future Advance Lender or the directors, officers,
employees, attorneys or agents (including Servicer or any other servicer or trustee in connection with a Securitization of Note A-1) with respect to any claim for any such damages. Except as otherwise provided in this Section 1.7(f),
each of Borrower and the other Lenders shall have such rights and remedies against a Defaulting Lender as may be available under applicable law. 

(g) In the event that any Future Advance Lender shall be a Defaulting Lender with respect to any Future Advance, Borrower may deliver a
written notice to such Defaulting Lender requesting that such Defaulting Lender fund such Future Advance in accordance with the terms hereunder (“Defaulting Advance Notice”). If such Defaulting Lender shall fail to fund such Future
Advance within five (5) Business Days after receipt of such Defaulting Advance Notice, Borrower shall have the right to replace such Defaulting Lender (the “Terminated Lender”); provided, that (i) Borrower shall have
delivered a copy of the applicable Defaulting Advance Notice to each Future Advance Lender that is not a Defaulting Lender (each a “Non-Defaulting Lender”) and no Non-Defaulting Lender (or a Qualified Institutional Lender designated
by a Non-Defaulting Lender) shall within ten (10) Business Days of receipt of such Defaulting Advance Notice (the “Non-Defaulting Lender Cure Period”) elect to fund such Future Advance; (ii) Borrower shall, following the
expiration of the Non-Defaulting Lender Cure Period, deliver written notice to such Terminated Lender and each other Future Advance Lender of the termination of the Terminated Lender and the appointment of a Replacement Lender (as defined below)
(“Replacement Lender Notice”); (iii) no Event of Default shall have occurred and be continuing at the time of such replacement; (iv) the entity(ies) appointed to replace the Terminated Lender shall be one or more Qualified
Institutional Lenders (or another institution acceptable to Lenders) designated by the Borrower that is not an Affiliate of Borrower (each a “Replacement Lender”); (v) such replacement shall not conflict with any Legal Requirements;
(vi) within ten (10) Business Days of delivery of such Replacement Lender Notice, such Replacement Lender shall purchase, at par, the outstanding principal balance of, and all accrued and unpaid interest through the assignment date on, all
outstanding A-2 Notes of the Terminated Lender, and shall assume such Defaulting Lender’s ratable share of the unfunded Future Advance Amount and such Defaulting Lender’s other rights and obligations under the Loan Documents and any
co-lender agreements among the Future Advance Lenders (from and after the date of such assignment); and (vii) on the date of such assignment, the Borrower shall pay all amounts, if any, payable to such Terminated Lender pursuant to Section
1.4. Upon the payment to Terminated Lender of the amounts described in clauses (vi) and (vii) above, such Terminated Lender shall no longer constitute a “Lender” for purposes hereof; provided that any rights
of such Terminated Lender to any provisions stated to survive repayment of the Loan, including any indemnifications under the Loan Documents, shall survive as to such Terminated Lender. For the avoidance of doubt, neither the replacement of a
Defaulting Lender pursuant to this paragraph, nor anything else contained in this Section 1.7(g) shall waive any rights and remedies that Borrower may have at law or in equity against any Defaulting Lender. Notwithstanding anything to the
contrary herein, any Future Advance Lender that does not fund a Future Advance because it has determined in good faith that the conditions precedents set forth in Section 1.7(b) have not been satisfied in accordance with the terms hereunder
shall not be deemed to be a Defaulting Lender. Notwithstanding anything to the contrary contained herein, Initial Advance Lender and any directors, officers, employees, attorneys or agents (including Servicer and any other servicer or trustee in
connection with a Securitization) of the Initial Advance Lender shall not have any liabilities or obligations arising pursuant to this Section 1.7(g). 

ARTICLE 2 
 VOLUNTARY
PREPAYMENT; RELEASE; TRANSFERS 
 Section 2.1 Voluntary Prepayment. 

(a) Borrower shall be prohibited from prepaying the Loan, in whole or in part, during the Lockout Period except in connection with (i) the
application of Loss Proceeds following a Casualty or Condemnation with respect to a Property in accordance with Section 5.16 or (ii) in connection with the release of one or more Properties in accordance with Section 2.2
or Section 2.3. After the expiration of the Lockout Period, Borrower shall have the right, at its option, upon not less than 5 Business Days’ prior written notice to Lender (or such other notice period as specified), to prepay the
Loan in whole or, to the extent provided in Section 1.1(d)(iii), Section 2.1(b), Section 2.1(c), Section 2.2 and Section 2.3 in part; provided that (x) Borrower shall pay to
Lender simultaneously with such prepayment the applicable Spread Maintenance Premium, if any, (y) there is a simultaneous and pro rata prepayment of the Mezzanine Loan with the result that, after giving effect to such prepayments, the Loan Pro
Rata Share remains unchanged and (z) each prepayment of the Loan shall be accompanied by the amount of interest theretofore accrued but unpaid in respect of the principal amount so prepaid, plus the amount of interest that would have accrued on
the principal amount so prepaid had it 

  
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remained outstanding through the end of the Interest Accrual Period in which such prepayment is made. Borrower’s notice of prepayment may be rescinded with one (1) Business Days’
written notice by Borrower to Lender (subject to payment of any reasonable out-of-pocket costs and expenses actually incurred by Lender, including breakage costs
actually incurred by Lender, resulting from such rescission). 
 (b) After the expiration of the Lockout Period, on not less than 15
Business Days’ prior written notice to Lender, and without limitation of Borrower’s right pursuant to Section 2.1(e) to prepay, in whole or in part, on or after the initial Maturity Date, Borrower may prepay up to 50% of the
Loan Amount in part (not in connection with the release of a Property in accordance with Section 2.2 or Section 2.3), subject to payment of Spread Maintenance Premium through and including the applicable Spread Maintenance
Expiration Date; provided that (i) any prepayments of the Loan made pursuant to Section 2.1(c), Section 2.2, Section 2.3 shall reduce on a dollar-for-dollar basis the foregoing 50% threshold and (ii) any prepayments of the Loan made in accordance with this Agreement (not in connection with the release of a Property in accordance with
Section 2.2 or Section 2.3 and other than Excluded Prepayments) in excess of 5% of the Loan Amount shall reduce on a dollar-for-dollar basis (but
without duplication of such reduction) the Property Release Threshold and/or the JV Release Threshold, as may be elected by Borrower in its sole discretion in the applicable prepayment notice delivered in accordance with Section 2.1(a)
or Section 2.1(b), as applicable. 
 (c) If the Debt Yield is less than the applicable 11.0% as of the end of any Test Period at
any time, Borrower shall be permitted to (but not obligated to) prepay a portion of the Loan (together with a simultaneous pro rata prepayment by Mezzanine Borrower of the Mezzanine Loan) in the amount required to cause the Debt Yield to equal
11.0%, which prepayment shall be accompanied by interest on the principal amount so prepaid through the end of the Interest Accrual Period in which such prepayment is made plus Spread Maintenance Premium through and including the applicable Spread
Maintenance Expiration Date. 
 (d) [Intentionally Omitted] 

(e) Other than as permitted by Section 1.1(d)(iii), Section 2.1(b), Section 2.1(c),
Section 2.2 and Section 2.3 and in connection with the application of Loss Proceeds following a Casualty or Condemnation with respect to a Property in accordance with Section 5.16, no partial prepayments of the
Loan shall be permitted prior to the initial Maturity Date. On or after the initial Maturity Date, the Loan may be prepaid in whole or in party at any time without penalty or premium, but otherwise subject to the provisions of
Section 2.1(a). 
 Section 2.2 Property Releases. 

(a) Provided no Default or Event of Default shall have occurred and be continuing, Borrower shall have the right to obtain one or more times
during the term of the Loan a release or assignment of the lien of the applicable Mortgage (and related Loan Documents) 

  
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as to any of the Properties (the “Release Property”) upon satisfaction of the following conditions precedent: 

(i) not less than 10 Business Days, nor more than 90 days, prior to the date on which the Borrower proposes a release or
assignment (including under this Section 2.2 or under Section 2.3) to occur (each, a “Release Date”), Borrower shall provide to Lender a notice specifying the proposed Release Date, which notice shall be
revocable without penalty by Borrower at any time on or prior to the Release Date (subject to payment by Borrower of any reasonable out-of-pocket costs and expenses,
including breakage costs, actually incurred by Lender in connection with such revocation); provided that Borrower shall have the right to adjourn the Release Date for a period of up to 60 days by delivering notice of such adjournment to
Lender on or prior to the then-scheduled Release Date; 
 (ii) such release or
assignment shall be in connection with a bona fide sale of the Release Property to a third party that is not a Broad Affiliate of Borrower, Guarantor or SHLD for cash consideration (i.e., no seller financing) and on
arm’s-length terms; 
 (iii) after giving effect to such release, the aggregate
principal amount of the Loan prepaid in connection with release of Properties pursuant to this Section 2.2 will not exceed the Property Release Threshold; 

(iv) (A) Borrower shall make a principal payment to be applied against the principal balance of the Loan in accordance with
Section 2.1 in an aggregate amount equal to the applicable Release Price, together with the amount of interest theretofore accrued but unpaid in respect of the principal amount so prepaid, plus the amount of interest that would have
accrued on the principal amount so prepaid had it remained outstanding through the end of the Interest Accrual Period in which such prepayment is made and, if applicable, the Spread Maintenance Premium and (B) Mezzanine Borrower shall make a
principal payment to be applied against the principal balance of the Mezzanine Loan in an aggregate amount equal to the Mezzanine Loan Release Price, together with any other amounts then due and payable under the Mezzanine Loan. Notwithstanding the
foregoing, Borrower may, with respect to any Release Property, deposit a portion of the Net Sales Proceeds thereof in excess of 150% of the Allocated Loan Amount of such Release Property into the Redevelopment Project Reserve Account or the TI/LC
Reserve Account (any such Net Sales Proceeds so deposited, “Designated Net Sales Proceeds”); provided that (1) the aggregate amount of the Designated Net Sales Proceeds deposited pursuant to this sentence shall not
exceed $75,000,000 during the life of the Loan and (ii) not more than $50,000,000 in the aggregate of such Net Sales Proceeds shall remain in the Redevelopment Project Reserve Account and/or the TI/LC Reserve Account at any one time. 

(v) Borrower shall have complied in all material respects with all requirements of and obtained all approvals, if any, required
under any Ground Leases, Leases (including the SHLD Master Lease) and/or Material Agreements applicable to the release or assignment of the Release Property, and the release shall not violate any of the provisions of any of the foregoing (except to
the extent such provisions have been waived or otherwise amended in such a manner that Borrower is no longer in violation thereof), and except as to all of the foregoing, if any non-compliance or violation
would not reasonably be expected to have a Property Material Adverse Effect; 

  
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 (vi) Lender shall have received reasonably satisfactory evidence that the
Mezzanine Borrower shall have satisfied all of the conditions to the proposed release set forth in the Mezzanine Loan Agreement (including written confirmation from the Mezzanine Lender that satisfactory escrow arrangements in connection with the
release of such Property have been established) and Mezzanine Lender shall have simultaneously effected a release under the Mezzanine Loan Documents of the Release Property; and 

(vii) if the Loan has been Securitized and the Securitization Vehicle is a REMIC, after giving effect to the release of the
Release Property, the Lender 80% Determination shall have been satisfied or, if the same is not so satisfied, then Borrower shall have prepaid the Loan in an amount equal to the lesser of (x) the fair market value of the Release Property so
released (as determined by Lender in its reasonable discretion using any commercially reasonable method permitted to a REMIC and excluding the value attributable to any property that is not an interest in real property within the meaning of
Section 860(G)(a)(3)(A) of the Code) and (y) the amount necessary to obtain a Lender 80% Determination, it being agreed that Lender shall use commercially reasonable efforts to complete the Lender 80% Determination not less than three
(3) Business Days prior to the Release Date; 
 (viii) if the Loan has been Securitized and the Securitization Vehicle
is a REMIC, Borrower shall deliver to Lender an opinion of counsel in form and substance which would be acceptable to a prudent lender of securitized commercial mortgage loans acting reasonably, stating, among other things, (subject to customary
assumptions of fact) that any REMIC Trust formed pursuant to a Securitization will not fail to maintain its status as a REMIC as a result of such release and will not be subject to tax on any “prohibited transactions” or “prohibited
contributions” as a result of such release; 
 (ix) Borrower shall deliver to Lender an Officer’s Certificate
certifying that the requirements set forth in this Section 2.2 (except as to clause (viii) above) have been satisfied; and 

(x) provided that Lender shall have delivered to Borrower reasonably detailed invoices therefor not less than three
(3) Business Days prior to the Release Date (but without limiting Borrower’s obligations to pay such costs and expenses), Borrower shall pay all reasonable
out-of-pocket costs and expenses of Lender actually incurred in connection with the release of the Release Property, including without limitation Lender’s
reasonable attorneys’ fees and expenses. 
 (b) In connection with a release or assignment of the Release Property in accordance with
the provisions of Section 2.2(a), Borrower shall submit to Lender, not less than three Business Days prior to the Release Date, a release or assignment of Lien (and related Loan Documents) for execution by the Lender with respect to the
Release Property. Such release or assignment shall be in a form appropriate in the jurisdiction in which the Release Property is located and shall comply with the provisions of Section 1.6. In addition, Borrower shall promptly deliver to
Lender such other documentation as Lender may reasonably request in connection with such release or assignment. In connection with such property release, at Borrower’s sole cost and expense, Lender shall execute and deliver Lender’s
written consent to the rescission of the Tenant Notices required pursuant to Section 3.1(a). 

  
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 (c) In connection with a release or assignment of the Release Property in accordance with the
provisions of Section 2.2(a), at Borrower’s sole cost and expense, Lender shall reasonably cooperate with Borrower to structure such release or assignment in a manner requested by Borrower (including interim transfers to a Release
Entity) provided the same does not impair Lender’s remaining Collateral, the continued validity of any of the Loan Documents or result in a waiver of any of the requirements of Section 2.2(a) or any of Borrower’s obligations
under the Loan Documents. 
 Section 2.3 JV Releases. 

(a) Provided no monetary Default, material non-monetary Default or Event of Default shall have occurred
and be continuing, Borrower shall have the right to obtain one or more times during the term of the Loan a release or assignment of the lien of the applicable Mortgage (and related Loan Documents) as to any of the Properties (the “JV Release
Property”) upon satisfaction of the following conditions precedent: 
 (i) not less than 15 Business Days, nor more
than 90 days, prior to the Release Date, Borrower shall provide to Lender a notice specifying the proposed Release Date, which notice shall be revocable without penalty by Borrower at any time on or prior to the Release Date (subject to payment by
Borrower of any reasonable out-of-pocket costs and expenses actually incurred by Lender in connection with the release); provided that Borrower shall have the right to
adjourn the Release Date for a period of up to 60 days by delivering notice of such adjournment to Lender on or prior to the then-scheduled Release Date; 

(ii) such release or assignment shall be in connection with a bona fide transfer of the JV Release Property to a joint venture
(a “Permitted JV”) between a Single-Purpose Entity wholly-owned, directly or indirectly, by Seritage OP (the “Seritage JV Member”) and
a third party that is not a Broad Affiliate of Borrower, Guarantor or SHLD (a “Permitted JV Member”); 

(iii) after giving effect to such release, the aggregate principal amount of the Loan prepaid in connection with release of
Properties pursuant to this Section 2.3 will not exceed the JV Release Threshold; 
 (iv) (A) Borrower shall make
a principal payment to be applied against the principal balance of the Loan in accordance with Section 2.1 in an aggregate amount equal to the applicable Release Price, together with the amount of interest theretofore accrued but unpaid
in respect of the principal amount so prepaid, plus the amount of interest that would have accrued on the principal amount so prepaid had it remained outstanding through the end of the Interest Accrual Period in which such prepayment is made and, if
applicable, the Spread Maintenance Premium and (B) Mezzanine Borrower shall make a principal payment to be applied against the principal balance of the Mezzanine Loan in an aggregate amount equal to the Mezzanine Loan Release Price, together with
any other amounts then due and payable under the Mezzanine Loan; 

  
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 (v) Borrower shall have complied in all material respects with all requirements
of and obtained all approvals, if any, required under any Ground Leases, Leases, the SHLD Master Lease and/or Material Agreements applicable to the release or assignment of the JV Release Property, and the release shall not violate any of the
provisions of any of the foregoing (except to the extent such provisions have been waived or otherwise amended in such a manner that Borrower is no longer in violation thereof), and except as to all of the foregoing, if any non-compliance or violation would not reasonably be expected to have a Property Material Adverse Effect; 

(vi) not less than ten (10) Business Days’ prior to the expected Release Date, Borrower shall have delivered to
Lender true and correct copies of all related Permitted JV Documents, which Permitted JV Documents shall expressly permit the direct or indirect pledge to Lender of, and during the continuance of an Event of Default the foreclosure on or assignment-in-lieu of foreclosure of, the related Permitted JV Collateral; 
 (vii) (A)
100% of the equity interests held by the Seritage JV Member shall be pledged to Lender as additional collateral for the Loan pursuant to a Permitted JV Pledge and Security Agreement; provided, that if, notwithstanding Borrower’s good
faith, commercially reasonable efforts to obtain consent to such direct pledge from the applicable Permitted JV Member, such direct pledge is not permitted under the Permitted JV Documents, then 100% of the equity interests in the Seritage JV Member
shall be pledged to Lender as additional collateral for the Loan and the Permitted JV Pledge and Security Agreement shall be modified to reflect the indirect (rather than direct) pledge to Lender and (B) Seritage JV Member shall have delivered
to Lender such organizational documents and opinions (including with respect to authority, enforceability and, if required by the Rating Agencies, non-consolidation) in substantially the same forms as delivered by the JV Pledgors on the Closing
Date; 
 (viii) the Permitted JV Member shall have sufficient expertise and experience in the development, ownership and
operation of similar properties, as reasonably determined by Lender; 
 (ix) Lender shall have received reasonably
satisfactory evidence that the Mezzanine Borrower shall have satisfied all of the conditions to the proposed release set forth in the Mezzanine Loan Agreement (including written confirmation from the Mezzanine Lender that satisfactory escrow
arrangements in connection with the release of such Property have been established) and Mezzanine Lender shall have simultaneously effected a release under the Mezzanine Loan Documents of the JV Release Property; 

(x) if the Loan has been Securitized and the Securitization Vehicle is a REMIC, after giving effect to the release of the
Release Property, the Lender 80% Determination shall have been satisfied or, if the same is not so satisfied, then Borrower shall have prepaid the Loan in an amount equal to the lesser of (x) the fair market value

  
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of the Release Property so released (as determined by Lender in its reasonable discretion using any commercially reasonable method permitted to a REMIC and excluding the value attributable to any
property that is not an interest in real property within the meaning of Section 860(G)(a)(3)(A) of the Code) and (y) the amount necessary to obtain a Lender 80% Determination, it being agreed that Lender shall use commercially reasonable
efforts to complete the Lender 80% Determination not less than three (3) Business Days prior to the Release Date; 

(xi) if the Loan has been Securitized and the Securitization Vehicle is a REMIC, Borrower shall deliver to Lender an opinion of
counsel in form and substance which would be acceptable to a prudent lender of securitized commercial mortgage loans acting reasonably, stating, among other things, (subject to customary assumptions of fact) that any REMIC Trust formed pursuant to a
Securitization will not fail to maintain its status as a REMIC as a result of such release and will not be subject to tax on any “prohibited transactions” or “prohibited contributions” as a result of such release; 

(xii) Borrower shall deliver to Lender an Officer’s Certificate certifying that the requirements set forth in this
Section 2.3 (except as to clause (xi) above) have been satisfied; and 
 (xiii) provided that Lender
shall have delivered to Borrower reasonably detailed invoices therefor not less than three (3) Business Days prior to the Release Date (but without limiting Borrower’s obligations to pay such costs and expenses), Borrower shall pay all
reasonable out-of-pocket costs and expenses of Lender actually incurred in connection with the release of the JV Release Property, including without limitation
Lender’s reasonable attorneys’ fees and expenses. 
 (b) In connection with a release or assignment of the JV
Release Property in accordance with the provisions of Section 2.3(a), Borrower shall submit to Lender, not less than five Business Days prior to the Release Date, a release or assignment of Lien (and related Loan Documents) for execution
by the Lender with respect to the JV Release Property. Such release or assignment shall be in a form appropriate in the jurisdiction in which the JV Release Property is located and shall comply with the provisions of Section 1.6.
Borrower shall promptly deliver to Lender such other documentation as Lender may reasonably request in connection with such release or assignment. In connection with such property release, at Borrower’s sole cost and expense, Lender shall
execute and deliver Lender’s written consent to the rescission of the Tenant Notices required pursuant to Section 3.1(a). 

(c) In connection with a release or assignment of the JV Release Property in accordance with the provisions of
Section 2.3(a), at Borrower’s sole cost and expense, Lender shall reasonably cooperate with Borrower to structure such release or assignment in a manner requested by Borrower (including interim transfers to a Release Entity)
provided the same does not impair Lender’s remaining Collateral, the continued validity of any of the Loan Documents or result in a waiver of any of the requirements of Section 2.3(a) or any of Borrower’s obligations under the
Loan Documents. 

  
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 Section 2.4 Transfers of Equity Interests in Borrower. 

(a) No direct or indirect Equity Interests in a Restricted Party shall be Transferred to any Person, unless the following conditions are
satisfied: 
 (i) no Event of Default shall be continuing at the time of such conveyance or transfer; 

(ii) no Prohibited Change of Control or Prohibited Pledge shall occur as a result thereof, and such Person shall not be a
Prohibited Transferee; 
 (iii) if such conveyance or transfer results in any Person acquiring more than 49% of the direct or
indirect equity interest in any Required SPE (even if not constituting a Prohibited Change of Control), Borrower shall have delivered to Lender with respect to such Person an Additional Non-Consolidation
Opinion; 
 (iv) provided that Lender shall have delivered to Borrower reasonably detailed invoices therefor not less than
three (3) Business Days prior to the date of the applicable Transfer (but without limiting Borrower’s obligations to pay such costs and expenses), Borrower shall have paid the costs and expenses (if any) of the Rating Agencies and Servicer
and reimbursed Lender for its reasonable out-of-pocket costs and expenses actually incurred in connection with any such conveyance or transfer; 

(v) Lender shall have received 10 days advance written notice of such Transfer; 

(vi) Lender shall have received copies of all instruments effecting such proposed Transfer (which instruments are subject to
Lender’s reasonable approval) and any other information that Lender may reasonably request in connection with the proposed Transfer; 

(vii) to the extent any transferee shall own twenty percent (20%) or more of the direct or indirect ownership interests in
Borrower or JV Pledgor immediately following such Transfer (provided such transferee owned less than twenty percent (20%) of the direct or indirect ownership interests in Borrower or JV Pledgor as of the Closing Date), Borrower shall deliver
(and Borrower shall be responsible for any reasonable out-of-pocket costs and expenses in connection therewith) all documentation and other information required by bank
regulatory authorities under applicable “know-your-customer” and anti-money laundering rules and regulations, including
the PATRIOT Act which shall include customary searches reasonably requested by Lender in writing (which may include, without limitation, credit, judgment, lien, litigation, bankruptcy, criminal and watch list searches) reasonably acceptable to
Lender with respect to such transferee; and 
 (viii) Lender shall have received reasonably satisfactory evidence that the
Mezzanine Borrower shall have satisfied all of the conditions to the proposed Transfer set forth in the Mezzanine Loan Agreement. 
 (b) A
Transfer shall include, but not be limited to, (i) if a Restricted Party is a corporation, any merger, consolidation or sale or pledge of such corporation’s stock or the 

  
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creation or issuance of new stock; (ii) if a Restricted Party is a limited or general partnership or joint venture, any merger or consolidation or the change, removal, resignation or
addition of a general partner or the sale or pledge of the partnership interest of any general partner or any profits or proceeds relating to such partnership interest, or the sale or pledge of limited partnership interests or any profits or
proceeds relating to such limited partnership interest or the creation or issuance of new limited partnership interests; (iii) if a Restricted Party is a limited liability company, any merger or consolidation or the change, removal, resignation
or addition of a managing member or non-member manager (or if no managing member, any member) or the sale or pledge of the membership interest of a managing member (or if no managing member, any member) or any
profits or proceeds relating to such membership interest, or the sale or pledge of non-managing membership interests or the creation or issuance of new non-managing
membership interests; or (iv) if a Restricted Party is a trust or nominee trust, any merger, consolidation or the sale or pledge of the legal or beneficial interest in such Restricted Party or the creation or issuance of new legal or beneficial
interests. 
 (c) Notwithstanding anything herein to the contrary, (i) Section 2.4(a) shall not apply to Transfers of
Equity Interests in Seritage OP unless the Transfer constitutes (A) a Prohibited Change of Control, (B) a Prohibited Pledge or (C) a Transfer to which Section 2.4(a)(iii) or (vii) applies and
(ii) Transfers of Equity Interests in Seritage REIT that are traded on a nationally-recognized public stock exchange shall not constitute a Transfer for any purposes of this Section 2.4 so
long as such Transfer does not result in a Prohibited Change of Control. 
 (d) Notwithstanding anything herein to the contrary, so long as
no Event of Default exists, the Transfer, but not pledge, of any JV Interests (or any direct or indirect Equity Interests in JV Pledgor) to any Person (other than an Affiliate or a Embargoed Person) solely for cash consideration shall be permitted
at any time upon not less than 10 Business Days’ prior notice to Lender, and, subject to compliance by JV Pledgor with the provisions of Section 5.24(a), Lender shall release its Lien on the JV Interests being Transferred, on the
date of such Transfer, subject to the terms of the applicable JV Pledge and Security Agreement. 
 (e) Notwithstanding anything herein to
the contrary, following the Loan Closing, Lender agrees that all of the indirect Equity Interests in each of Borrower and JV Pledgor may be Transferred to Seritage OP in accordance with the SHLD PSA (the “Separation Transfer”) in
connection with consummation of the Approved Separation Transaction Closing; provided that the following conditions (to the extent not already satisfied in connection with the Loan Closing) shall have been satisfied simultaneously or
immediately thereafter, as the case may be (or waived in accordance with Section 9.3): 
 (i) Transfer of
Additional Properties and Simon JV Interests. Immediately following the Approved Separation Transaction Closing (A) the Borrower shall have purchased the Additional Properties and (B) the Simon JV Pledgor shall have purchased the Simon
JV Interests, in each case, in accordance with the SHLD PSA. 
 (ii) Loan Documents. (A) Borrower shall have duly
executed and delivered to Lender a Mortgage with respect to each Additional Property, (B) Simon JV Pledgor shall have duly executed and delivered the Simon JV Pledge and Security Agreement and (C) each of Seritage REIT and Seritage OP
shall have duly executed and delivered to Lender, the Guaranty. 

  
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 (iii) Approved Management Agreements. Lender shall have received duly
executed copies of each Approved Management Agreement, the SHLD TSA and the Subordination of Property Management Agreement, and each of Seritage Management LLC and SHMC shall have duly executed and delivered the related Subordination of Management
Agreement. 
 (iv) Opinions. Lender shall have received, in each case in form and substance satisfactory to Lender,
(i) a New York legal opinion with respect to the Guaranty and the Simon JV Pledge and Security Agreement, (ii) a Maryland law opinion with respect to the Seritage REIT, (iii) a Delaware law opinion with respect to the Borrower, JV
Pledgor and Seritage OP, (iv) a legal opinion with respect to the laws of each state in which the Additional Properties are located and (v) a bankruptcy nonconsolidation opinion with respect to each Person owning at least a 49% direct or
indirect equity interest in any Required SPE, and any Affiliated property manager. 
 (v) Mezzanine Loan. The
conditions precedent to Separation Transfer in the Mezzanine Loan Agreement shall be satisfied. 
 (vi) Title. Lender
shall have received a marked, signed commitment to issue, or a signed pro-forma version of, a Title Insurance Policy in respect of each Additional Property, listing only such exceptions as are reasonably
satisfactory to Lender. If the Title Policy is to be issued by, or if disbursement of the proceeds of the Loan are to be made through, an agent of the actual insurer under the Title Policy (as opposed to the insurer itself), the actual insurer shall
have issued to Lender for Lender’s benefit a so-called “Insured Closing Letter.” 

ARTICLE 3 
 ACCOUNTS

 Section 3.1 Cash Management Account. 

(a) On or prior to the Closing Date, Borrower shall establish and thereafter maintain with the Clearing Account Bank one or more accounts
(including, as to payments by check, a lockbox account) into which all Revenues from the Properties will be deposited (collectively, the “Clearing Account”). As a condition precedent to the closing of the Loan, Borrower shall cause
the Clearing Account Bank to execute and deliver an agreement (as modified or replaced in accordance herewith, a “Clearing Account Agreement”) which provides, inter alia, that neither Borrower nor any Approved Property
Manager shall have access to funds in the Clearing Account and that at the end of each Business Day the Clearing Account Bank will remit all amounts contained therein directly into an Eligible Account of the Borrower specified from time to time by
Lender (the “Cash Management Account”). Within ten Business Days following the Closing Date, Borrower shall deliver to each Tenant in the Properties a written notice (a “Tenant Notice”) in the form of Exhibit
B instructing that (i) all payments under 

  
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the Leases shall thereafter be remitted by them directly to, and deposited directly into, the Clearing Account, and (ii) such instruction may not be rescinded unless and until such Tenant
receives from Borrower or Lender a copy of Lender’s written consent to such rescission; provided that the Tenant Notice with respect to the SHLD Master Tenant, the Tenant under the Lands’ End Lease and each Tenant under an Affiliate
Lease shall be delivered on the Closing Date. Borrower shall send a copy of each such written notice to Lender and shall redeliver such notices to each Tenant until such time as such Tenant complies therewith. Borrower shall cause all cash Revenues
relating to the Properties and all other money received by Borrower or the Approved Property Manager with respect to the Properties (other than tenant security deposits required to be held in escrow accounts) to be deposited in the Clearing Account
or the Cash Management Account by the end of the second Business Day following Borrower having actual knowledge of Borrower’s or the Approved Property Manager’s receipt thereof. 

(b) Lender shall have the right at any time and from time to time in its sole discretion to change the Eligible Institution at which any one
or more of the Collateral Accounts (other than the Clearing Account) is maintained (and in the case of any such change in respect of the Cash Management Account, Lender shall deliver not less than five Business Days’ prior written notice to
Borrower and the Clearing Account Bank). In addition, during the continuance of an Event of Default, or if the Clearing Account Bank fails to comply with the Clearing Account Agreement or ceases to be an Eligible Institution, Lender shall have the
right at any time, upon not less than 30 days’ prior written notice to Borrower, to replace the Clearing Account Bank with any Eligible Institution at which Eligible Accounts may be maintained that will promptly execute and deliver to Lender a
Clearing Account Agreement satisfactory to Lender. 
 (c) Borrower shall maintain at all times an Operating Account into which amounts may
be deposited from time to time pursuant to Section 3.2(a) and Section 3.2(b). Borrower shall not permit any amounts unrelated to the Properties to be commingled with amounts on deposit in the Operating Account and shall cause
all amounts payable with respect to Operating Expenses for the Properties to be paid from the Operating Account or the Cash Management Account (to the extent required or permitted hereunder) and no other account. Borrower shall deliver to Lender
each month the monthly bank statement related to such Operating Account. So long as no Event of Default is continuing, Borrower and any Approved Property Manager shall be permitted to withdraw amounts from the Operating Account for the purpose of
paying bona fide Property expenses incurred in accordance with this Agreement. So long as no Event of Default or Cash Flow Sweep Period is continuing, Borrower shall be permitted to make equity distributions from amounts remaining therein after
Operating Expenses that are then due and payable have been paid. During the continuance of an Event of Default, all amounts contained in the Operating Account shall be remitted to the Cash Management Account. 

Section 3.2 Distributions from Cash Management Account. 

(a) Lender shall transfer from the Cash Management Account to the Operating Account, at the end of each Business Day (or, at Borrower’s
election, on a less frequent basis), the amount, if any, by which amounts then contained in the Cash Management Account exceed the aggregate amount required to be paid to or reserved with Lender or Mezzanine Lender on the next Payment Date pursuant
hereto; provided, however, that, subject to Section 3.2(b), Lender shall terminate such remittances during the continuance of an Event of Default or Cash Flow Sweep Period. 

  
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 (b) On each Payment Date, provided no Event of Default is continuing (and, if and to the extent
Lender so elects in its sole discretion, during the continuance of an Event of Default until the Loan has been accelerated), Lender shall transfer amounts from the Cash Management Account, to the extent available therein, to make the following
payments in the following order of priority: 
 (i) to the Basic Carrying Costs Escrow Account, the amounts then required to
be deposited therein pursuant to Section 3.4; 
 (ii) to Lender (i) for payment to Servicer, the Primary
Servicing Fee and (ii) the amount of all scheduled or delinquent interest and principal on the Loan and all other amounts, in each case, then due and payable under the Loan Documents (with any amounts in respect of principal paid last); 

(iii) during the continuance of a Cash Flow Sweep Period, to the Operating Account, an amount equal to the Budgeted Operating
Expenses for the month in which such Payment Date occurs; provided that the amounts disbursed to such account pursuant to this clause (iii) shall be used by Borrower solely to pay Budgeted Operating Expenses for such month (Borrower
agreeing that, in the event that such Budgeted Operating Expenses exceed the actual operating expenses for such month, such excess amounts shall be remitted by Borrower to the Cash Management Account prior to the next succeeding Payment Date); and
provided further that no amounts in excess of the Maximum Management Fees will be disbursed to Borrower in respect of the base property management fees of any Approved Property Manager that is an Affiliate of Borrower during the
continuance of a Cash Flow Sweep Period or an Event of Default; 
 (iv) to the TI/LC Reserve Account, the amount required to
be deposited therein pursuant to Section 3.5; 
 (v) to the Capital Expenditure Reserve Account, the amount
required to be deposited therein pursuant to Section 3.6; 
 (vi) until Lender shall have received notice from
Mezzanine Lender that the Mezzanine Loan has been repaid in full and provided that no Event of Default is then continuing, to Mezzanine Lender, the Mezzanine Loan Primary Servicing Fee and all scheduled interest then due and payable or past due and
payable to Mezzanine Lender under the Mezzanine Loan Agreement, as specified by Mezzanine Lender pursuant to Mezzanine Lender’s written instructions to Lender; 

(vii) during the continuance of a Cash Flow Sweep Period, with respect to ongoing Redevelopment Projects as of such date, to
the Redevelopment Project Reserve Account, the aggregate amount of Approved Redevelopment Costs set forth in the applicable Approved Redevelopment Plan and Budgets that are budgeted to be funded from Excess Cash Flow; 

  
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 (viii) if Lender has received written notice from the Mezzanine Lender that a
Mezzanine Loan Event of Default is continuing, so long as no Cash Flow Sweep Period or Event of Default is continuing, all remaining amounts to Mezzanine Lender; 

(ix) during the continuance of a Cash Flow Sweep Period or, if Lender makes the election described in
Section 3.2(b) above, during the continuance of an Event of Default, all remaining amounts to the Cash Flow Sweep Reserve Account; 

(x) if no Cash Flow Sweep Period, Event of Default or Mezzanine Loan Event of Default is continuing, to Guarantor in
reimbursement of any Completion Guaranty Payments or Mezzanine Loan Completion Guaranty Payments, in each case, made by Guarantor; and 

(xi) if no Cash Flow Sweep Period, Event of Default or Mezzanine Loan Event of Default is continuing, all remaining amounts to
the Operating Account. 
 (c) If on any Payment Date the amount in the Cash Management Account is insufficient to make all of the transfers
described above (other than remittance of excess cash to the Cash Flow Sweep Reserve Account or the Operating Account or any required remittance to Mezzanine Lender), then Borrower shall remit to the Cash Management Account on such Payment Date the
amount of such deficiency. If Borrower fails to remit such amount to the Cash Management Account on such Payment Date, the same shall constitute an Event of Default and, in addition to all other rights and remedies provided for under the Loan
Documents, Lender may disburse and apply the amounts in the Collateral Accounts in accordance with Section 3.12(c). 
 (d) All
transfers of Borrower’s funds from the Cash Management Account or other sources to or for the benefit of Mezzanine Lender or Mezzanine Borrower pursuant to this Agreement, the Cash Management Agreement or any of the other Loan Documents, are
intended by Borrower and Mezzanine Borrower to constitute, and shall constitute, distributions from Borrower to Mezzanine Borrower in accordance with the Delaware Limited Liability Company Act. 

(e) Lender may, absent manifest error, conclusively rely upon any notice received from Mezzanine Lender with respect to the amount then
payable under the applicable Mezzanine Loan Agreement and with respect to the occurrence, continuance or termination of any Mezzanine Loan Event of Default. Lender shall be under no duty to inquire into or investigate the validity, accuracy or
content of any such notice. 
 Section 3.3 Loss Proceeds Account. 

(a) Upon the occurrence of a Material Casualty Event or a Material Condemnation Event, Lender will establish and maintain an Eligible Account
(which may be a subaccount of the Cash Management Account) for the purpose of depositing any Loss Proceeds (the “Loss Proceeds Account”). 

(b) Provided no Event of Default is continuing, funds in the Loss Proceeds account shall be applied in accordance with
Section 5.16. 

  
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 Section 3.4 Basic Carrying Costs Escrow Account. 

(a) Lender will establish and maintain an Eligible Account (which may be a subaccount of the Cash Management Account) for the purpose of
reserving amounts payable by Borrower in respect of Taxes, Ground Rents and insurance premiums (the “Basic Carrying Costs Escrow Account”). 

(b) On the Closing Date, the Basic Carrying Costs Escrow Account shall be funded in an amount equal to the sum of (i) an amount sufficient
to pay all Taxes by the 30th day prior to the date they come due, assuming subsequent monthly fundings on Payment Dates of 1/12 of projected annual Taxes, plus (ii) an amount
sufficient to pay all Ground Rents by the 30th day prior to the date they come due, assuming subsequent monthly fundings on Payment Dates of 1/12 of projected annual Ground Rents, plus
(iii) an amount sufficient to pay all insurance premiums by the 30th day prior to the date they come due, assuming subsequent monthly fundings on Payment Dates of 1/12 of projected annual
insurance premiums. 
 (c) On each subsequent Payment Date, an additional deposit shall be made therein in an amount equal to the sum of:

 (i) 1/12 of the Taxes that Lender reasonably estimates, based on information provided by Borrower, will be payable during
the next ensuing 12 months, plus 
 (ii) 1/12 of the Ground Rents that Lender reasonably estimates, based on
information provided by Borrower, will be payable during the next ensuing 12 months, plus 
 (iii) 1/12 of the
insurance premiums that Lender reasonably estimates, based on information provided by Borrower, will be payable during the next ensuing 12 months; 

provided, however, that if at any time Lender reasonably determines that the amount in the Basic Carrying Costs Escrow Account will not be
sufficient to accumulate (upon payment of subsequent monthly amounts in accordance with the provisions of this Agreement) the full amount of all installments of Taxes, Ground Rents and insurance premiums by the date on which such amounts come due,
then Lender shall notify Borrower of such determination and Borrower shall increase its monthly payments to the Basic Carrying Costs Escrow Account by the amount that Lender reasonably estimates is sufficient to achieve such accumulation. 

(d) Borrower shall provide Lender with copies of all tax, Ground Rents and insurance bills relating to the Properties promptly after
Borrower’s receipt thereof. Lender will apply amounts in the Basic Carrying Costs Escrow Account toward the purposes for which such amounts are deposited therein. In connection with the making of any payment from the Basic Carrying Costs Escrow
Account, Lender may cause such payment to be made according to any bill, statement or estimate provided by Borrower or procured from the appropriate public office, ground lessor or insurance carrier, without inquiry into the accuracy of such bill,
statement or estimate or into the validity of any tax, assessment, sale, forfeiture, tax lien or title or claim thereof unless given written advance notice by Borrower of such inaccuracy, invalidity or other contest. 

  
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 (e) If Lender so elects at any time, Borrower shall provide, at Borrower’s expense, a tax
service contract for the term of the Loan issued by a tax reporting agency reasonably acceptable to Lender. If Lender does not so elect, Borrower shall reimburse Lender for the actual,
out-of-pocket cost of making annual tax searches throughout the term of the Loan. 

Section 3.5 TI/LC Reserve Account. 

(a) Lender will establish and maintain an Eligible Account (which may be a subaccount of the Cash Management Account) for the purpose of
reserving amounts in respect of Tenant Improvements and Leasing Commissions (the “TI/LC Reserve Account”). 
 (b) On each
Payment Date, there shall be deposited into the TI/LC Reserve Account an amount equal to the Monthly TI/LC Amount (as reduced by the amount of any JV Profits deposited in the TI/LC Reserve Account in accordance with Section 5.24(a) in
the prior calendar month). 
 (c) Upon the request of Borrower at any time that no Event of Default is continuing (but not more often than
once per calendar month), Lender shall cause disbursements to Borrower from the TI/LC Reserve Account to pay, or to reimburse Borrower for, Leasing Commissions and Tenant Improvement costs incurred by Borrower in connection with a new Lease (or
Lease extension) entered into in accordance herewith; provided that: 
 (i) Borrower shall deliver to Lender invoices
evidencing that the costs for which such disbursements are requested are due and payable; 
 (ii) Borrower shall deliver to
Lender an Officer’s Certificate confirming that all such costs have been previously paid by Borrower or will be paid from the proceeds of the requested disbursement and that all conditions precedent to such disbursement required by the Loan
Documents have been satisfied; and 
 (iii) Lender may condition the making of a requested disbursement on
(1) reasonable evidence establishing that Borrower has applied prior disbursements from the TI/LC Reserve Account for the related Property as provided in the related disbursement requests and (2) with respect to disbursements for Tenant
Improvements relating to any single Tenant or any single Lease in excess of $2,000,000 in the aggregate (whether disbursed in a lump sum or multiple installments), (x) a reasonably satisfactory site inspection, and (y) receipt of partial
or complete lien releases and waivers from any contractors, subcontractors and others with respect to such amounts. 
 (d) Whenever a Lease
is terminated in whole or in part (including without limitation the SHLD Master Lease), whether by buy-out, cancellation, default or otherwise, and Borrower receives any payment, fee or penalty in respect of
such termination (a “Termination Fee”), Borrower shall promptly cause such Termination Fee to be deposited into the TI/LC Reserve Account. Provided no Event of Default is continuing, Lender shall disburse such Termination Fee or
portion thereof to Borrower at the written request of Borrower in respect of Leasing Commissions and Tenant Improvement costs incurred by Borrower in connection with one or more replacement or other Leases entered into in accordance with the terms
of this Agreement. 

  
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 (e) Notwithstanding the foregoing, in no event shall Designated Net Sales Proceeds be released
from the TI/LC Reserve Account until such time as the entirety of the Future Advance Amount shall have been drawn by Borrower. 

Section 3.6 Capital Expenditure Reserve Account. 

(a) Lender will establish and maintain an Eligible Account (which may be a subaccount of the Cash Management Account) for the purpose of
reserving amounts in respect of Capital Expenditures (the “Capital Expenditure Reserve Account”). 
 (b) On each Payment
Date, there shall be deposited into the Capital Expenditure Reserve Account an amount equal to the Monthly Capital Expenditure Amount. 

(c) Upon the request of Borrower at any time that no Event of Default is continuing (but not more often than once per calendar month), Lender
shall cause disbursements to Borrower from the Capital Expenditure Reserve Account to pay, or to reimburse Borrower for, Capital Expenditures that are consistent with the Approved Annual Budget; provided that: 

(i) Borrower shall deliver to Lender invoices evidencing that the costs for which such disbursements are requested are due and
payable; 
 (ii) Borrower shall deliver to Lender an Officer’s Certificate confirming that all such costs have been
previously paid by Borrower or will be paid from the proceeds of the requested disbursement and that all conditions precedent to such disbursement required by the Loan Documents have been satisfied; and 

(iii) Lender may condition the making of a requested disbursement on (1) reasonable evidence establishing that Borrower
has applied prior disbursements from the Capital Expenditure Reserve Account for the related Property as provided in the related disbursement requests and (2) with respect to disbursements for Capital Expenditures relating to any single capital
improvement costing in excess of $2,000,000 in the aggregate (whether disbursed in a lump sum or multiple installments), (x) a reasonably satisfactory site inspection, and (y) receipt of partial or complete lien releases and waivers from
any contractors, subcontractors and others with respect to such amounts . 
 Section 3.7 Deferred Maintenance and Environmental
Escrow Account. 
 (a) Lender will establish and maintain an Eligible Account (which may be a subaccount of the Cash Management Account)
for the purpose of reserving amounts anticipated to be required to correct Deferred Maintenance Conditions and Environmental Conditions (the “Deferred Maintenance and Environmental Escrow Account”). 

(b) On the Closing Date, Borrower shall deposit into the Deferred Maintenance and Environmental Escrow Account an amount equal to the sum of
the Deferred Maintenance Amount and the Environmental Reserve Amount. 

  
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 (c) Upon the request of Borrower at any time that no Event of Default is continuing (but not more
often than once per calendar month), Lender shall cause disbursements to Borrower from the Deferred Maintenance and Environmental Escrow Account to pay, or to reimburse Borrower for, reasonable costs and expenses incurred in order to correct
Deferred Maintenance Conditions and Environmental Conditions; provided that: 
 (i) Borrower shall deliver to Lender
invoices evidencing that the costs for which such disbursements are requested are due and payable; 
 (ii) Borrower shall
deliver to Lender an Officer’s Certificate confirming that all such costs have been previously paid by Borrower or will be paid from the proceeds of the requested disbursement and that all conditions precedent to such disbursement required by
the Loan Documents have been satisfied; and 
 (iii) Lender may condition the making of a requested disbursement on
(1) reasonable evidence establishing that Borrower has applied prior disbursements from the Deferred Maintenance and Environmental Escrow Account for the related Property as provided in the related disbursement requests and (2) with
respect to disbursements for any single Deferred Maintenance Condition or Environmental Condition costing in excess of $2,000,000 in the aggregate to remediate (whether disbursed in a lump sum or multiple installments), (x) reasonably
satisfactory site inspections, and (y) receipt of partial or complete lien releases and waivers from any contractors, subcontractors and others with respect to such amounts. 

(d) Upon the correcting of all Deferred Maintenance Conditions and Environmental Conditions and payment of all costs and expenses in respect
thereof, provided no Event of Default or Cash Flow Sweep Period is then continuing, any amounts then remaining in the Deferred Maintenance and Environmental Escrow Account shall promptly be remitted to Borrower and the Deferred Maintenance and
Environmental Escrow Account will no longer be maintained. 
 Section 3.8 Cash Flow Sweep Reserve Account. 

(a) Lender will establish and maintain an Eligible Account (which may be a subaccount of the Cash Management Account) for the deposit of
amounts required to be deposited therein in accordance with Section 3.2(b) (the “Cash Flow Sweep Reserve Account”). 

(b) Provided that no Event of Default is then continuing, upon not less than five (5) Business Days’ prior written notice from
Borrower (but no more often than quarterly), Lender shall release to Borrower funds from the Cash Flow Sweep Reserve Account in the Permitted Equity Distribution Amount with respect to such period; provided that Borrower shall include with
such notice, an Officer’s Certificate that includes the following: 
 (i) a reasonably detailed calculation of
(1) REIT taxable income for the applicable period and (2) the resulting amount required to be distributed by Seritage REIT to its shareholders with respect to such period under U.S. federal income tax laws for it to maintain its REIT
status and the proportionate amount of such distribution to be distributed by Seritage OP with respect to its partnership units (the “OP Units”) (such 

  
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amount required to be paid, in the aggregate, by Seritage REIT and Seritage OP, the “REIT Cash Distribution Amount”), assuming that, for purposes of calculating the REIT Cash
Distribution Amount, (other than with respect to a Cash Flow Sweep Period initiated by a Cash Flow Sweep Trigger Event set forth in clause (iii) or clause (vi) of the definition thereof, as to which an assumption shall apply
that such distributions by each of Seritage REIT and Seritage OP will be made entirely in cash), (A) Seritage REIT will pay such distributions partly in cash and partly in shares of Seritage REIT stock at the election of each Seritage REIT
shareholder, where the aggregate amount of cash to be distributed is capped at 50% of the total amount distributed by Seritage REIT pursuant to such distribution, and (B) Seritage OP will pay such distributions partly in cash and partly in OP
Units at the election of each holder of OP Units, where the aggregate amount of cash to be distributed is capped at 50% of the total amount distributed by Seritage OP pursuant to such distribution; and 

(ii) a reasonably detailed calculation of Guarantor’s consolidated Liquidity (calculated on a consolidated basis) in
excess of the Guarantor Retention Amount (“Guarantor Available Funds Amount”). 
 (c) Provided no Event of Default is then
continuing, Lender shall release to the Cash Management Account all amounts then contained in the Cash Flow Sweep Reserve Account on the first Payment Date after Borrower delivers to Lender evidence reasonably satisfactory to Lender establishing
that no Cash Flow Sweep Period is then continuing. Such a release shall not preclude the subsequent commencement of a Cash Flow Sweep Period and the deposit of amounts into the Cash Flow Sweep Reserve Account as set forth in
Section 3.2(b). 
 Section 3.9 Unfunded Obligations Account. 

(a) Lender shall establish and maintain an Eligible Account (which may be a subaccount of the Cash Management Account) for the purpose of
reserving for Unfunded Obligations required to be funded by Borrower (the “Unfunded Obligations Account”). 
 (b) On the
Closing Date, Borrower shall deposit into the Unfunded Obligations Account an amount equal to the $42,469,698. 
 (c) Borrower shall perform
its obligations in respect of the Unfunded Obligations when and as due under the respective Leases or other applicable agreements. Upon the request of Borrower at any time that no Event of Default is continuing (but not more often than once per
calendar month), Lender shall cause disbursements to Borrower from the Unfunded Obligations Account to pay, or to reimburse Borrower for, reasonable costs and expenses incurred in the performance of Unfunded Obligations; provided that 

(i) Borrower shall have satisfied the applicable Existing Redevelopment Funding Conditions (which are hereby incorporated by
reference as if set forth herein in full); 
 (ii) Borrower shall deliver to Lender invoices evidencing that the costs for
which such disbursements are requested are due and payable; 

  
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 (iii) Borrower shall deliver to Lender an Officer’s Certificate confirming
that all such costs have been previously paid by Borrower or will be paid from the proceeds of the requested disbursement and that all conditions precedent to such disbursement required by the Loan Documents have been satisfied; and 

(iv) Lender may condition the making of a requested disbursement on (1) reasonable evidence establishing that Borrower has
applied prior disbursements from the Unfunded Obligations Account for the related Property as provided in the related disbursement requests and (2) with respect to disbursements for any single Unfunded Obligation costing in excess of $2,000,000
in the aggregate (whether disbursed in a lump sum or multiple installments), (x) reasonably satisfactory site inspections and (y) receipt of partial or complete lien releases and waivers from any contractors, subcontractors and others with
respect to such amounts. 
 (d) Upon payment or performance, as applicable, of all Unfunded Obligations identified for any Property on
Schedule E-1, and provided no Event of Default is then continuing, the remainder of the portion of the Unfunded Obligations Account held for such Property (as shown adjacent to such line item on Schedule E-1) shall promptly be remitted
to Borrower. Upon the payment or performance in full of all Unfunded Obligations, provided no Event of Default or Cash Flow Sweep Period is then continuing, any amounts then remaining in the Unfunded Obligations Account shall promptly be remitted to
Borrower and the Unfunded Obligations Account will no longer be maintained. 
 Section 3.10 Cash Flow Sweep Cure Reserve
Account. 
 (a) Upon request of Borrower in connection with the occurrence of an event that would otherwise be a Cash Flow Sweep Trigger
Event, Lender will establish and maintain an Eligible Account (which may be a subaccount of the Cash Management Account) for the deposit of the applicable Cash Flow Sweep Cure Collateral (the “Cash Flow Sweep Cure Reserve Account”).

 (b) Provided that no Event of Default is then continuing, Lender shall release to the Cash Management Account all amounts then contained
in the Cash Flow Sweep Cure Reserve Account on the first Payment Date after Borrower delivers to Lender evidence reasonably satisfactory to Lender establishing that the applicable Cash Flow Sweep Trigger Event is no longer continuing (without regard
to the applicable Cash Flow Sweep Cure Collateral delivered to Lender in accordance with this Agreement). 
 Section 3.11
Redevelopment Project Reserve Account. 
 (a) Lender will establish and maintain an Eligible Account (which may be a subaccount of the
Cash Management Account) for the purpose of reserving amounts in respect of Approved Redevelopment Costs of Redevelopment Projects (the “Redevelopment Project Reserve Account”). Notwithstanding anything herein to the contrary, in
lieu of making any required deposit into the Redevelopment Project Reserve Account, Borrower may elect in writing by notice to Lender, in Borrower’s sole discretion, to designate all or any portion of undrawn balance of the Future Advance
Amount (to the extent not previously designated for use 

  
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on any other Redevelopment Project) for application to one or more Redevelopment Projects, and such election, unless revoked by written notice from Borrower to Lender (which notice Borrower may
elect to give in Borrower’s sole discretion) be deemed to constitute available funds in the Redevelopment Project Reserve Account; provided that such revocation by Borrower shall only be permitted so long as Borrower has not incurred any
costs in respect of such Redevelopment Project that have been or are expected to be funded by advances by Future Advance Lender of the Future Advance Amount or has otherwise demonstrated to Lender’s reasonable satisfaction that the conditions
set forth in Section 5.22(b)(ii) are satisfied as of the date of such revocation. 
 (b) Subject to the terms and conditions
contained herein, funds on deposit in the Redevelopment Project Reserve Account will be available to Borrower solely to fund Approved Redevelopment Costs, and shall be funded to Borrower on the Funding Date specified in the Funding Request. From
time to time, Borrower may submit a Funding Request to Lender specifying the amount to be released and a Funding Date not less than 5 days nor more than 30 days after Lender’s receipt of such Funding Request on which Borrower desires such
release to be made, provided that Borrower shall only be entitled to release of funds from the Redevelopment Project Reserve Account up to four times during any calendar month (but only once during any calendar month with respect to any
single Redevelopment Project). Lender shall release from the Redevelopment Project Reserve Account on each applicable Funding Date to the Operating Account, the Approved Redevelopment Costs set forth in such Funding Request, subject to the
satisfaction of the following conditions precedent on or prior to the applicable Funding Date: 
 (i) no Event of Default
shall have occurred and be continuing; 
 (ii) prior to the initial Funding Request with respect to a Redevelopment Project,
Borrower shall have satisfied the conditions set forth in Section 5.22(b); 
 (iii) prior to each Funding Request
with respect to a Redevelopment Project, Borrower shall have satisfied the conditions set forth in Section 5.22(c); and 

(iv) prior to the final Funding Request with respect to a Redevelopment Project, Borrower shall have satisfied the condition
set forth in the first sentence of Section 5.22(f). 
 (c) Notwithstanding the foregoing, in no event shall Designated Net Sales
Proceeds be released from the Redevelopment Project Reserve Account until such time as the entirety of the Future Advance Amount shall have been drawn by Borrower. 

Section 3.12 Account Collateral. 

(a) Borrower hereby pledges the Account Collateral to Lender as security for the Indebtedness, together with all rights of a secured party with
respect thereto, it being the intention of the parties that such pledge shall be a perfected first-priority security interest. Each Collateral Account shall be an Eligible Account under the sole dominion and
control of Lender. Borrower shall have no right to make withdrawals from any of the Collateral Accounts other than the Operating Account. Funds in the Collateral Accounts shall not be commingled with any

  
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other monies at any time. Borrower shall execute any additional documents that Lender in its reasonable discretion may require and shall provide all other evidence reasonably requested by Lender
to evidence or perfect its first-priority security interest in the Account Collateral. Funds in the Collateral Accounts shall be invested only in Permitted Investments, which Permitted Investments shall be
credited to the related Collateral Account. All income and gains from the investment of funds in the Collateral Accounts other than the Basic Carrying Costs Escrow Account shall be retained in the Collateral Accounts from which they were derived.
Unless otherwise required by applicable law, all income and gains from the investment of funds in the Basic Carrying Costs Escrow Account shall be for the account of Lender in consideration of its administration of such Collateral Account, and
Lender shall have the right at any time to withdraw such amounts from the Basic Carrying Costs Escrow Account. All fees of the Cash Management Bank and the Clearing Account Bank shall be paid by Borrower. After the Loan and all other Indebtedness
have been paid in full, the Collateral Accounts shall be closed and the balances therein, if any, shall be paid to Mezzanine Lender unless Lender shall have received written notice from Mezzanine Lender that the Mezzanine Loan has been paid in full,
and if such notice has been delivered by Mezzanine Lender, to Borrower. 
 (b) The insufficiency of amounts contained in the Collateral
Accounts shall not relieve Borrower from its obligation to fulfill all covenants contained in the Loan Documents. 
 (c) During the
continuance of an Event of Default, Lender may, in its sole discretion, apply funds in the Collateral Accounts, and funds resulting from the liquidation of Permitted Investments contained in the Collateral Accounts, either toward the components of
the Indebtedness (e.g., interest, principal and other amounts payable hereunder), the Loan, the Note Components and the Notes in such sequence as Lender shall elect in its sole discretion, and/or toward the payment of Property expenses. 

Section 3.13 Bankruptcy. Borrower and Lender acknowledge and agree that upon the filing of a bankruptcy petition by or against
Borrower under the Bankruptcy Code, the Account Collateral and the Revenues (whether then already in the Collateral Accounts, or then due or becoming due thereafter) shall be deemed not to be property of Borrower’s bankruptcy estate within the
meaning of Section 541 of the Bankruptcy Code. If, however, a court of competent jurisdiction determines that, notwithstanding the foregoing characterization of the Account Collateral and the Revenues by Borrower and Lender, the Account
Collateral and/or the Revenues do constitute property of Borrower’s bankruptcy estate, then Borrower and Lender further acknowledge and agree that all such Revenues, whether due and payable before or after the filing of the petition, are and
shall be cash collateral of Lender. Borrower acknowledges that Lender does not consent to Borrower’s use of such cash collateral and that, in the event Lender elects (in its sole discretion) to give such consent, such consent shall only be
effective if given in writing signed by Lender. Except as provided in the immediately preceding sentence, Borrower shall not have the right to use or apply or require the use or application of such cash collateral (i) unless Borrower shall have
received a court order authorizing the use of the same, and (ii) Borrower shall have provided such adequate protection to Lender as shall be required by the bankruptcy court in accordance with the Bankruptcy Code. 

  
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 ARTICLE 4 

REPRESENTATIONS 
 Borrower
and, to the extent provided in this Article IV, JV Pledgor, represents to Lender that, as of the Closing Date, except as set forth in the Exception Report: 

Section 4.1 Organization. 

(a) Each Required SPE is duly organized, validly existing and in good standing under the laws of the State of Delaware, and is in good standing
in each other jurisdiction where ownership of its properties or the conduct of its business requires it to be so, and each Required SPE has all power and authority under such laws and its organizational documents and all material governmental
licenses, authorizations, consents and approvals required to carry on its business as now conducted. 
 (b) The organizational chart
contained in Exhibit A is true and correct as of the date hereof. 
 Section 4.2 Authorization. Each of Borrower and JV
Pledgor, as applicable, has the power and authority to enter into this Agreement and the other Loan Documents, to perform its obligations hereunder and thereunder and to consummate the transactions contemplated by the Loan Documents and has by
proper action duly authorized the execution and delivery of the Loan Documents. 
 Section 4.3 No Conflicts. Neither the
execution and delivery of the Loan Documents by Borrower and JV Pledgor, nor the consummation of the transactions contemplated therein, nor performance of and compliance with the terms and provisions thereof will (i) violate or conflict with
any provision of its formation and governance documents, (ii) violate any material Legal Requirement, regulation (including Regulation U, Regulation X or Regulation T), order, writ, judgment, injunction, decree or permit applicable to it,
(iii) violate or conflict with contractual provisions of, or cause an event of default under, any indenture, loan agreement, mortgage, contract (including Ground Leases, Leases (including the SHLD Master Lease), the JV Documents and/or Material
Agreements), to which Borrower, JV Pledgor or Guarantor, as applicable, is a party or may be bound, or (iv) result in or require the creation of any Lien or other charge or encumbrance upon or with respect to the Collateral or the JV Collateral
in favor of any Person other than Lender. 
 Section 4.4 Consents. No consent, approval, authorization or order of, or
qualification with, any court or Governmental Authority is required in connection with the execution, delivery or performance by Borrower and JV Pledgor, as applicable, of this Agreement or the other Loan Documents, except for any of the foregoing
that have already been obtained. 
 Section 4.5 Enforceable Obligations. This Agreement and the other Loan Documents have been
duly executed and delivered by Borrower and JV Pledgor and constitute its legal, valid and binding obligations, enforceable in accordance with their respective terms, subject to bankruptcy, insolvency and similar laws of general applicability
relating to or affecting creditors’ rights and to general equity principles. The Loan Documents are not subject to any right of rescission, offset, abatement, counterclaim or defense by Borrower, JV Pledgor or Guarantor, including the defense
of usury or fraud. 

  
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 Section 4.6 No Default. No Default or Event of Default will exist immediately
following the making of the Loan. 
 Section 4.7 Payment of Taxes. Borrower and JV Pledgor, as applicable, has filed, or caused
to be filed, all tax returns (federal, state, local and foreign) required to be filed and paid all amounts of taxes due (including interest and penalties) except for taxes that are not yet delinquent and has paid all other taxes, fees, assessments
and other governmental charges (including mortgage recording taxes, documentary stamp taxes and intangible taxes) owing by it necessary to preserve the Liens in favor of Lender. 

Section 4.8 Compliance with Law. Borrower, each Property and the use thereof comply in all material respects with all applicable
Insurance Requirements. Borrower, each Property and the use thereof comply with all Legal Requirements, including building and zoning ordinances and codes, except in each case where the failure to comply would not reasonably be expected to have a
Property Material Adverse Effect. Each Property conforms to current zoning requirements (including requirements relating to parking) and is neither an illegal nor a legal nonconforming use except as specified in the zoning report delivered to Lender
in connection with the Closing, except in each case where the failure to comply would not reasonably be expected to have a Property Material Adverse Effect. Borrower is not in default or violation of any order, writ, injunction, decree or demand of
any Governmental Authority the violation of which could adversely affect any Property or the condition (financial or otherwise) or business of Borrower or JV Pledgor. There has not been committed by or on behalf of Borrower any act or omission
affording any federal Governmental Authority or any state or local Governmental Authority the right of forfeiture as against any Property or any portion thereof or any monies paid in performance of its obligations under any of the Loan Documents.
Neither Borrower nor JV Pledgor has purchased any portion of any of the Collateral or JV Collateral with proceeds of any illegal activity. 

Section 4.9 ERISA. 

(a) Neither Borrower, JV Pledgor nor any ERISA Affiliate of Borrower nor JV Pledgor has incurred or could be subjected to any liability under
Title IV or Section 302 of ERISA or Section 412 of the Code or maintains or contributes to, or is or has been required to maintain or contribute to, any employee benefit plan (as defined in Section 3(3) of ERISA) subject to Title IV
or Section 302 of ERISA or Section 412 of the Code. The consummation of the transactions contemplated by this Agreement will not constitute or result in any non-exempt prohibited transaction under
Section 406 of ERISA, Section 4975 of the Code or substantially similar provisions under federal, state or local laws, rules or regulations. 

(b) Neither Borrower nor JV Pledgor is or is acting on behalf of (i) an “employee benefit plan” within the meaning of
Section 3(3) of ERISA, (ii) a “plan” within the meaning of Section 4975 of the Internal Revenue Code of 1986, as amended or (iii) an entity deemed to hold “plan assets” within the meaning of 29 C.F.R. §2510.3-101, as modified by Section 3(42) of ERISA, of any such employee benefit plan or plan. 

  
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 Section 4.10 Investment Company Act. Neither Borrower nor JV Pledgor is an
“investment company”, or a company “controlled” by an “investment company”, registered or required to be registered under the Investment Company Act of 1940, as amended. 

Section 4.11 No Bankruptcy Filing. Neither Borrower nor JV Pledgor is contemplating either the filing of a petition by it under
any state or federal bankruptcy or insolvency laws or the liquidation of all or a major portion of its assets or property. Neither Borrower nor JV Pledgor has any knowledge of any Person contemplating the filing of any such petition against it.
During the ten year period preceding the Closing Date, no petition in bankruptcy has been filed by or against any Required SPE, Guarantor, any of their respective Subsidiaries and no such Persons have been convicted of a felony. As of the Closing
Date, Borrower has not received notice of and is not otherwise aware of any Tenant under a Major Lease contemplating or having filed any of the foregoing actions. 

Section 4.12 Other Debt. Neither Borrower nor JV Pledgor has outstanding any Debt other than Permitted Debt. 

Section 4.13 Litigation. There are no actions, suits, proceedings, arbitrations or governmental investigations by or before any
Governmental Authority or other court or agency now filed or otherwise pending, and to the knowledge Borrower and JV Pledgor there are no such actions, suits, proceedings, arbitrations or governmental investigations threatened in writing, against or
affecting Borrower, JV Pledgor, Guarantor or any of the Collateral or the JV Collateral, in each case, except for (i) matters covered by insurance and (ii) matters that would not reasonably be expected to either have a Material Adverse
Effect, a Property Material Adverse Effect or materially adversely affect the condition (financial or otherwise) or business of Borrower or JV Pledgor. 

Section 4.14 Leases; Material Agreements. 

(a) Borrower has delivered to Lender true and complete copies of all Leases in effect on or prior to the Closing Date, including all
modifications and amendments thereto. No person has any possessory interest in any of the Properties or right to occupy the same except under and pursuant to the provisions of the Leases. The rent roll attached to this Agreement as Schedule F
(the “Rent Roll”) is accurate and complete in all material respects as of the Closing Date. Except as indicated on the Rent Roll or Exception Report, no security deposits are being held by Borrower (including bonds or letters of
credit being held in lieu of cash security deposits), no Tenant listed on Schedule P hereto has any termination options (except in connection with a Casualty or Condemnation), no Tenant has any extension or renewal rights (except as set forth
in its Lease), no Tenant or other party has any option, right of first refusal or similar preferential right to purchase all or any portion of the fee or Ground Lease interest in the Property, and no fixed rent has been paid more than 30 days in
advance of its due date and, as of the Closing Date, no payments of rent are more than 30 days delinquent. Each of the following is true and correct with respect to each Lease: 

(i) such Lease is valid and enforceable and is in full force and effect (A) on the Closing Date or (B) as to any
subsequent date as of which this representation is being made, as expressly provided in this Agreement, except where the same would not reasonably be expected to have a Material Adverse Effect or a Property Material Adverse Effect; 

  
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 (ii) Borrower is the sole owner of the entire lessor’s interest in such
Lease; 
 (iii) other than the SHLD Master Lease, the Lands’ End Master Lease and the Sears Hometown License Agreement,
such Lease is an arm’s-length agreement with a bona fide, independent third party; 

(iv) none of the Revenues reserved in such Lease have been assigned or otherwise pledged or hypothecated (except such pledge or
hypothecation that will be fully terminated and released in connection with the filing and recordation of the Mortgage and except for the Liens contemplated pursuant to the Loan Documents); 

(v) neither Borrower nor, to Borrower’s knowledge, any other party under such Lease is in default thereunder either
(A) on the Closing Date, in any material respect, or (B) as to any subsequent date as of which this representation is being made, as expressly provided in this Agreement, where the same would reasonably be expected to have a Material
Adverse Effect or a Property Material Adverse Effect; 
 (vi) there exist no offsets or defenses to the payment of any
portion of the rents thereunder (A) on the Closing Date, or (B) as to any subsequent date as of which this representation is being made, as expressly provided in this Agreement, except where the same would not reasonably be expected to
have a Material Adverse Effect or a Property Material Adverse Effect; 
 (vii) as of the Closing Date, no brokerage
commissions or finders fees are due and payable regarding any Lease; and 
 (viii) except for the Unfunded Obligations, all
work to be performed by the landlord under such Lease has been substantially performed, all Tenants have accepted possession of their respective premises under such Lease, all contributions to be made by the landlord to the Tenants thereunder have
been made, all other conditions to each Tenant’s obligations thereunder have been satisfied, no Tenant has the right to require Borrower to perform or finance Tenant Improvements or Material Alterations and no Leasing Commissions are owed or
would be owed upon the exercise of any Tenant’s existing renewal or expansion options, and Borrower has no other monetary obligation to any Tenant under such Lease, in each case as of the Closing Date. 

(b) As of the Closing Date, there are no Material Agreements except as described in Schedule G. Borrower has made available to Lender
true and complete copies of all Material Agreements and the JV Documents (including all exhibits and schedules thereto) as of the Closing Date. The Material Agreements and the JV Documents are in full force and effect and there are no defaults
thereunder by Borrower or, to Borrower’s knowledge, any other party thereto (A) on the Closing Date, or (B) as to any subsequent date as of which this representation is being made, as expressly provided in this Agreement, except where
the same would not reasonably be expected to have a Material Adverse Effect or a Property Material Adverse Effect. Borrower has delivered or made available to Lender all material written correspondence with respect to any material pending or
threatened disputes under any Property Agreement. 

  
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 (c) The SHLD Master Lease is a “true lease” for all purposes of the Bankruptcy Code
(including Section 365(d) and 502(b)(6) thereof). 
 Section 4.15 Full and Accurate Disclosure. All written
information, other than projections, other forward looking information and information of a general economic or industry nature, that has been made available to Lender by or on behalf of Borrower or JV Pledgor prior to the date of this Agreement in
connection with the Loan and the other transactions contemplated hereby, when taken as a whole, was, when furnished, true and correct in all material respects and did not, when furnished, contain any untrue statement of a material fact or omit to
state a material fact necessary in order to make the statements contained therein not materially misleading in light of the circumstances under which such statements were made (giving effect to all supplements and updates provided
thereto). There is no fact, event or circumstance presently known to Borrower or JV Pledgor that has not been disclosed to Lender that has had or would reasonably be expected to result in a Material Adverse Effect or a Property Material Adverse
Effect. 
 Section 4.16 Financial Condition and Projections. Borrower has heretofore delivered to Lender (i) cash basis property-by-property 12-month pro forma operating statements with respect to the Properties and (ii) the list of Unfunded Obligations attached hereto as Schedule
E-1, and all such materials have been prepared in good faith based upon assumptions that are believed by the preparer thereof to be reasonable at the time such materials were prepared (it being understood that the materials described in
clause (i) and clause (ii) hereof are not to be viewed as facts and are subject to significant uncertainties and contingencies and actual results may vary materially from the information contained in such materials). 

Section 4.17 Single-Purpose Requirements. 

(a) Each Required SPE is now, and has always been since its formation, a Single-Purpose Entity and has
conducted its business in substantial compliance with the provisions of its organizational documents. Borrower has never (i) owned any property other than the Properties and incidental personal property necessary for the ownership and operation
of the Properties, (ii) engaged in any business, except the owning, holding, developing, selling, transferring, leasing, managing and operating of the Properties and other lawful business that is incident, necessary and appropriate to
accomplish the foregoing or (iii) had any material contingent or actual obligations or liabilities unrelated to the Properties. JV Pledgor has never (i) owned any property other than the applicable JV Interests, (ii) engaged in any
business, except owning, holding, selling, transferring and managing the JV Interests or (iii) had any material contingent or actual obligations or liabilities unrelated to the JV Interests. 

(b) (i) Borrower has provided Lender with true, correct and complete copies of Borrower’s current operating agreement or partnership
agreement, as applicable, together with all amendments and modifications thereto and (ii) JV Pledgor has provided Lender with true, correct and complete copies of JV Pledgor’s current operating or partnership agreement, as applicable,
together with all amendments and modifications thereto. 

  
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 (c) Any and all of the stated facts and assumptions made in any Nonconsolidation Opinion,
including, but not limited to, any exhibits attached thereto, will have been and shall be true and correct in all respects, and Borrower and JV Pledgor, as applicable, will have complied and will comply with all of the stated facts and assumptions
made with respect to it in any Nonconsolidation Opinion. Each entity other than Borrower and JV Pledgor, as applicable, with respect to which an assumption is made or a fact stated in any Nonconsolidation Opinion will have complied and will comply
with all of the assumptions made and facts stated with respect to it in any such Nonconsolidation Opinion. Each of Borrower and JV Pledgor covenants that in connection with any Additional Nonconsolidation Opinion delivered in connection with this
Agreement it shall provide an updated certification regarding compliance with the facts and assumptions made therein. 
 Section 4.18
Use of Loan Proceeds. No part of the proceeds of the Loan will be used for the purpose of purchasing or acquiring any “margin stock” within the meaning of Regulations T, U or X of the Board of Governors of the Federal Reserve System
or for any other purpose that would be inconsistent with such Regulations T, U or X or any other Regulations of such Board of Governors, or for any purpose prohibited by Legal Requirements or by the terms and conditions of the Loan Documents. 

Section 4.19 Not Foreign Person. Borrower is not a “foreign person” within the meaning of Section 1445(f)(3) of the
Code. 
 Section 4.20 Labor Matters. Neither the Borrower nor the JV Pledgor has any employees and neither is a party to any
collective bargaining agreements. 
 Section 4.21 Title. Borrower owns insurable fee or leasehold title to the Properties (other
than any personal property) and good and marketable title to the related personal property, to the Collateral Accounts, and to any other Collateral, and JV Pledgor owns good title to the JV Collateral, in each case free and clear of all Liens
whatsoever except the Permitted Encumbrances. Each Mortgage, when properly recorded in the appropriate records, together with any Uniform Commercial Code financing statements required to be filed in connection therewith, will create (i) a
valid, perfected first priority Lien on the real property portion of the Properties and the rents therefrom, enforceable as such against creditors of and purchasers from Borrower and subject only to Permitted Encumbrances, and (ii) perfected
Liens (pursuant to the Uniform Commercial Code of the State of New York) in and to all personalty (excluding any portion thereof constituting personalty in which a Lien may not be perfected under applicable law by the filing of a financing
statement), subject only to any applicable Permitted Encumbrances. The Permitted Encumbrances do not and will not, individually or in the aggregate, materially and adversely affect or interfere with the value, or current or contemplated use or
operation, of the Properties, or the security intended to be provided by the Mortgage, the ability of the Properties to generate net cash flow sufficient to service the Loan or Borrower’s ability to pay its obligations as and when they come
due, including its ability to repay the Indebtedness in accordance with the terms of the Loan Documents. Except as insured over by a Title Insurance Policy, there are, as of the Closing Date, no claims for payment for work, labor or materials
affecting the Properties that are or may become a Lien prior to, or of equal priority with, the Liens created by the Loan Documents. No creditor of Borrower other than Lender has in its possession any goods that constitute or evidence the
Collateral. 

  
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 Section 4.22 No Encroachments. Except as shown on the applicable Survey, all of the
improvements on each Property lie wholly within the boundaries and building restriction lines of such Property, and no improvements on adjoining property encroach upon any Property, and no easements or other encumbrances upon any Property encroach
upon any of the improvements, so as, in any case, to result in a Property Material Adverse Effect, except those that are insured against by a Title Insurance Policy. 

Section 4.23 Physical Condition. 

(a) Except for matters set forth in the Engineering Reports, each Property and all building systems (including sidewalks, parking lots, storm
drainage system, roof, plumbing system, HVAC system, fire protection system, electrical system equipment, elevators, exterior sidings and doors, irrigation system and all structural components) are free of all material damage and are in good
condition, order and repair in all respects, except, in each case, as would not reasonably be expected to result in a Property Material Adverse Effect. 

(b) As of the Closing Date, Borrower is not aware of any material structural or other material defect or damages in any of the Properties,
whether latent or otherwise. 
 (c) As of the Closing Date, Borrower has not received and is not aware of any other Person’s receipt of
notice from any insurance company or bonding company of any defects or inadequacies in any of the Properties that would, alone or in the aggregate, adversely affect in any material respect the insurability of the same or cause the imposition of
extraordinary premiums or charges thereon or of any termination or threatened termination of any policy of insurance or bond. 

Section 4.24 Fraudulent Conveyance. Neither Borrower nor JV Pledgor has entered into the Transaction or any of the Loan Documents
with the actual intent to hinder, delay or defraud any creditor. Each of Borrower and JV Pledgor has received reasonably equivalent value in exchange for its obligations under the Loan Documents. On the Closing Date, the fair salable value of
Borrower’s and JV Pledgor’s aggregate assets (as applicable) is and will, immediately following the making of the Loan and the use and disbursement of the proceeds thereof, be greater than its probable aggregate liabilities (including
subordinated, unliquidated, disputed and Contingent Obligations). The aggregate assets of Borrower and JV Pledgor (as applicable) do not and, immediately following the making of the Loan and the use and disbursement of the proceeds thereof will not,
constitute unreasonably small capital to carry out its business as conducted or as proposed to be conducted. Neither Borrower nor JV Pledgor intends to, and does not believe that it will, incur debts and liabilities (including Contingent Obligations
and other commitments) beyond its ability to pay such debts as they mature (taking into account the timing and amounts to be payable on or in respect of obligations of Borrower). 

Section 4.25 Management. Except for any Approved Management Agreement, no property management agreements are in effect with
respect to the Properties to which Borrower or SHLD Master Tenant is a party. As of the Closing Date, the Approved Management Agreement is in full force and effect and there is no event of default thereunder by any party thereto and no event has
occurred that, with the passage of time and/or the giving of notice would constitute a default thereunder. 

  
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 Section 4.26 Condemnation. On the Closing Date, no Condemnation has been commenced
or, to Borrower’s knowledge, is contemplated in writing or threatened in writing with respect to all or any portion of any of the Properties or for the relocation of roadways providing access to any of the Properties, and, as of any subsequent
date as of which this representation is being made, as expressly provided in this Agreement, except, in each case, as would not reasonably be expected to have a Material Adverse Effect. 

Section 4.27 Utilities and Public Access. Each of the Properties has adequate rights of access to dedicated public ways (and makes
no material use of any means of access or egress that is not pursuant to such dedicated public ways or recorded, irrevocable rights-of-way or easements) and is
adequately served by all public utilities, including water and sewer (or well and septic), necessary to the continued use and enjoyment of such Property as presently used and enjoyed. 

Section 4.28 Environmental Matters. Except as disclosed in the Environmental Reports: 

(i) To Borrower’s knowledge, no Hazardous Substances are located at, on, in or under any of the Properties or have been
handled, manufactured, generated, stored, processed, or disposed of at, on, in or under, or have been Released from, any Property. Without limiting the foregoing, to Borrower’s knowledge, there is not present at, on, in or under any of the
Properties, any PCB-containing equipment, asbestos or asbestos containing materials, underground storage tanks or surface impoundments for any Hazardous Substance, lead in drinking water (except in
concentrations that comply with all Environmental Laws), or lead-based paint. To Borrower’s knowledge, there is no threat of any Release of any Hazardous Substance migrating to any of the Properties. 

(ii) Each Property is in compliance in all material respects with all Environmental Laws applicable to such Property (which
compliance includes, but is not limited to, the possession of, and compliance with, all environmental, health and safety permits, approvals, licenses, registrations and other governmental authorizations required in connection with the ownership and
operation of such Property under all Environmental Laws). No Environmental Claim is pending with respect to any of the Properties, nor, to Borrower’s knowledge, is any threatened, nor are there any consent decrees or other decrees, consent
orders, administrative orders or other orders, or other administrative or judicial requirements outstanding under any Environmental Law with respect to Borrower or any of the Properties (A) on the Closing Date, or (B) as to any subsequent
date as of which this representation is being made, as expressly provided in this Agreement, except where the same would not reasonably be expected to have a Material Adverse Effect or a Property Material Adverse Effect. 

(iii) As of the Closing Date, no Liens are recorded with the appropriate land records under or pursuant to any Environmental
Law with respect to any of the Properties and, to Borrower’s knowledge, no Governmental Authority has been taking any action to subject any of the Properties to Liens under any Environmental Law. 

  
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 (iv) There have been no material environmental investigations, studies, audits,
reviews or other analyses conducted by or that are in the possession of Borrower in relation to any of the Properties that have not been made available to Lender. 

Section 4.29 Assessments. There are no pending or proposed (in writing) special or other assessments for public improvements or
otherwise affecting any of the Properties, nor are there any contemplated improvements to any of the Properties that may result in such special or other assessments, in any such case that would reasonably be expected to have a Material Adverse
Effect or a Property Material Adverse Effect. 
 Section 4.30 No Joint Assessment. Borrower has not initiated the joint
assessment of any of the Properties (i) with any other real property constituting a separate tax lot, or (ii) with any personal property, or any other procedure whereby the Lien of any Taxes that may be levied against such other real
property or personal property shall be assessed or levied or charged to any of the Properties as a single Lien. 
 Section 4.31
Separate Lots. No portion of any Property is part of a tax lot that also includes any real property that is not Collateral. 

Section 4.32 Permits; Certificate of Occupancy. Subject to administrative or ministerial filings and/or notices as may be required
as a result of, or in connection with, the transactions occurring on the Closing Date, Borrower has obtained all Permits necessary for the present and contemplated use and operation of each Property. The uses being made of each Property are in
conformity in all material respects with the certificate of occupancy and/or Permits for such Property and any other restrictions, covenants or conditions affecting such Property. 

Section 4.33 Flood Zone. None of the improvements on any of the Properties is located in an area identified by the Federal
Emergency Management Agency or the Federal Insurance Administration as a “100 year flood plain” or as having special flood hazards (including Zones A and V), or, to the extent that any portion of any Property is located in such an area,
any Property is covered by flood insurance meeting the requirements set forth in Section 5.15(a)(ii). 
 Section 4.34
Security Deposits. Borrower is in compliance in all material respects with all Legal Requirements relating to security deposits. 

Section 4.35 Acquisition Documents. Borrower has delivered to Lender true and complete copies of all material agreements and
instruments related to the Approved Separation Transaction under which Borrower, JV Pledgor or any of its Affiliates or the seller of the Collateral or the JV Collateral have remaining rights or obligations in respect of the acquisition of the
Collateral or the JV Collateral. 
 Section 4.36 Insurance. Borrower has obtained insurance policies reflecting the insurance
coverages, amounts and other requirements set forth in this Agreement. All premiums on such insurance policies required to be paid as of the Closing Date have been paid for the current policy period. Borrower has not done, by act or omission,
anything that would impair the coverage of any such policy. 

  
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 Section 4.37 No Dealings. Borrower is not aware of any unlawful influence on the
assessed value of any Property. 
 Section 4.38 Estoppel Certificates; JV Side Letters. 

(i) Borrower has requested estoppel certificates from each Tenant, each ground lessor under each Ground Lease and each
counterparty to a Property Agreement on the form heretofore agreed by Lender and has used commercially reasonable efforts to obtain executed estoppels from such parties. Borrower has delivered to Lender true and complete copies of each estoppel
certificate received back from any Tenant, any such ground lessor, and any such Property Agreement counterparty prior to the Closing Date. 

(ii) Borrower has used commercially reasonable efforts to obtain executed letter agreements in the form proposed by Lender from
each of GGP, Simon and Macerich with respect to the Applicable JV. 
 Section 4.39 Federal Trade Embargos. Guarantor and each
Required SPE is in compliance with all Federal Trade Embargos in all material respects. No Embargoed Person owns any direct or indirect equity interest in any Required SPE. To Borrower’s knowledge, no Tenant at any of the Properties is
identified on the OFAC List. Borrower has implemented procedures, and will consistently apply those procedures throughout the term of the Loan, to ensure that the foregoing representations and warranties remain true and correct during the term of
the Loan. 
 Section 4.40 Ground Leased Parcel. Taking into account the estoppel letter delivered to Lender by the related
ground lessor, each of the following is true with respect to each Ground Lease: 
 (i) Borrower has made available to Lender
true and complete copies of all Ground Leases, including all modifications and amendments thereto; 
 (ii) The Ground Lease
or a memorandum thereof has been duly recorded or submitted for recordation in a form that is acceptable for recording in the applicable jurisdiction. The Ground Lease or ground lease estoppel letter permits the interest of the lessee to be
encumbered by the Mortgage and does not restrict the use of any Property by Borrower, its successors or assigns in a manner that would adversely affect the security provided by the Mortgage; 

(iii) The lessor has agreed in writing in the Ground Lease or such estoppel letter that the Ground Lease may not be amended,
modified, canceled or terminated without the prior written consent of Lender and that any such action without such consent is not binding on Lender; 

(iv) The Ground Lease has an original term (or an original term plus one or more optional renewal terms, which, under all
circumstances, may be exercised, and will be enforceable, by Borrower or Lender) that extends not less than 20 years beyond the scheduled Maturity Date; 

  
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 (v) The Ground Lease is not subject to any interests, estates, liens or
encumbrances superior to, or of equal priority with, the Mortgage, except for the related fee interest of the ground lessor and the Permitted Encumbrances; 

(vi) The Ground Lease does not place commercially unreasonable restrictions on the identity of the mortgagee and the Ground
Lease is assignable to Lender and its successors and assigns without the consent of the lessor thereunder, and in the event it is so assigned, it is further assignable by the holder of the Loan and its successors and assigns without the consent of
the lessor; 
 (vii) There is no default under the Ground Lease and no condition that, but for the passage of time or giving
of notice, would result in a default under the terms of the Ground Lease, and the Ground Lease is in full force and effect as of the Closing Date; 

(viii) The Ground Lease or such estoppel letter requires the lessor to give to Lender written notice of any default, and
provides that no notice of default or termination is effective unless such notice is given to Lender; 
 (ix) Lender is
permitted a reasonable opportunity (including, where necessary, sufficient time to gain possession of the interest of Borrower under the Ground Lease through legal proceedings) to cure any default under the Ground Lease which is curable after
Lender’s receipt of notice of any default before the lessor may terminate the Ground Lease; 
 (x) The Ground Lease does
not impose any restrictions on subletting that would be viewed as commercially unreasonable by a prudent commercial mortgage lender; 

(xi) The Ground Lease or such estoppel letter does not prohibit or otherwise prevent Loss Proceeds from being held by Lender in
the Loss Proceeds Account and applied either to the repair or restoration the applicable Property or to the payment of the Indebtedness in accordance herewith; and without limiting the foregoing, in the case of a total or substantially total loss or
taking, the Ground Lease does not prohibit or prevent the application of the Loss Proceeds to the payment of the Indebtedness; and 

(xii) Provided that the lender cures any defaults which are susceptible to being cured, the lessor has agreed to enter into a
new lease with Lender upon termination of the Ground Lease for any reason, including rejection of the Ground Lease in a bankruptcy proceeding. 

Section 4.41 Survival. All of the representations of Borrower set forth in this Agreement and in the other Loan Documents shall
survive for so long as any portion of the Indebtedness is outstanding. As to each JV Pledgor, all of the representations of such JV Pledgor set forth in this Agreement and in the other Loan Documents shall survive until the earlier of (i) the
JV Pledgor Release Event as to such Pledgor (upon which occurrence such representatives shall have no further force or effect) or (ii) the repayment in full of the Indebtedness. All representations, covenants and agreements made by Borrower and
JV Pledgor in this Agreement or in the other Loan Documents shall be deemed to have been relied upon by Lender 

  
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notwithstanding any investigation heretofore or hereafter made by Lender or on its behalf. On the date of any Securitization, on not less than three Business Days’ prior written notice,
Borrower and JV Pledgor shall deliver to Lender a certification (x) confirming that all of the representations contained in this Agreement are true and correct as of the date of such Securitization, or (y) otherwise specifying any changes
in or qualifications to such representations as of such date as may be necessary to make such representations consistent with the facts as they exist on such date. 

ARTICLE 5 
 AFFIRMATIVE
COVENANTS 
 Borrower and, to the extent provided in this Article V, JV Pledgor, covenants and agrees as follows: 

Section 5.1 Existence; Licenses. Each Required SPE shall do or cause to be done all things necessary to remain in existence.
Borrower shall do or cause to be done all things necessary to preserve, renew and keep in full force and effect all rights, licenses, Permits, franchises, certificates of occupancy, consents, approvals and other agreements necessary for the
continued use and operation of the Properties. Each Required SPE shall deliver to Lender a copy of each amendment or other modification to any of its organizational documents promptly after the execution thereof. No party hereto shall take any
action inconsistent with the classification of each Required SPE as a “disregarded entity” for U.S. federal income tax purposes, and Seritage OP, or any other person qualified to make a check-the-box election for such Required SPE, shall make any election necessary to effect such classification. 

Section 5.2 Maintenance of Property. 

(a) Borrower shall cause each Property to be maintained in good and safe working order and repair, reasonable wear and tear excepted, and in
keeping with the condition and repair of properties of a similar use, value, age, nature and construction. Borrower shall not use, maintain or operate any Property in any manner that constitutes a public or private nuisance or that makes void,
voidable, or cancelable, or increases the premium of, any insurance then in force with respect thereto. Subject to Section 6.13, no improvements or equipment located at or on any Property shall be removed, demolished or materially
altered without the prior written consent of Lender (except for any Permitted Transfers and except for replacement of equipment in the ordinary course of business with items of the same utility and of equal or greater value and sales of obsolete
equipment no longer needed for the operation of the applicable Property), and Borrower shall from time to time make, or cause to be made, all reasonably necessary and desirable repairs, renewals, replacements, betterments and improvements to the
Properties in each such case where the failure to do so would reasonably be expected to have a Property Material Adverse Effect. Borrower shall not make any change in the use of any Property that would materially increase the risk of fire or other
hazard arising out of the operation of any Property, or do or permit to be done thereon anything that may in any way impair the value of any Property in any material respect or the Liens of the Mortgages, where in any such case the same would cause
or reasonably be expected to result in a Property Material Adverse Effect. Borrower shall not install or permit to be installed on any Property any underground storage 

  
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tank. Borrower shall not, without the prior written consent of Lender, permit any drilling or exploration for or extraction, removal, or production of any minerals from the surface or the
subsurface of any Property, regardless of the depth thereof or the method of mining or extraction thereof. 
 (b) Borrower shall remediate
the Deferred Maintenance Conditions and Environmental Conditions within the time periods following the Closing Date as specified in Schedule D-1 and Schedule D-2 hereto (or if no time periods are specified in such schedules, within
twelve (12) months following the Closing Date), subject to Force Majeure, and upon request from Lender after the expiration of such period shall deliver to Lender an Officer’s Certificate confirming that such remediation has been completed
and that all associated expenses have been paid; provided, that if Borrower is unable to remediate any Deferred Maintenance Condition or Environmental Condition within the time period set forth on Schedule D notwithstanding its use of
commercially reasonable efforts to do so, then, so long as (i) no Event of Default is then continuing, (ii) Borrower diligently and expeditiously proceeds to complete such remediation and (iii) the failure to complete remediation of
such Deferred Maintenance Condition or Environmental Condition does not (A) involve matters imminent to protection of human health and safety, (B) does not endanger any tenant, patron or other occupant of the Property or the general public
and (C) does not materially and adversely affect the value of the Property or result in a default by Borrower under any Lease or Material Agreement, such time period shall be extended to such further date as may be requested by Borrower and
approved by Lender in its reasonable discretion. In connection with any Major Redevelopment Project for which the Approved Redevelopment Plan and Budget includes a Deferred Maintenance Condition or an Environmental Condition or makes remediation or
related work unnecessary and the Major Redevelopment Project is approved prior to the time period set forth on Schedule D-1 or Schedule D-2, as applicable, for completion of the remediation of such Deferred Maintenance Condition or
Environmental Condition, the time period set forth on Schedule D-1 or Schedule D-2, as applicable, for such work shall be extended to coincide with the timing of the applicable Major Redevelopment Project. Additionally, the time period
set forth on Schedule D-1 or Schedule D-2, as applicable, to remediate any Deferred Maintenance Condition or Environmental Condition may be extended with Lender’s prior written consent, which shall not be unreasonably denied,
conditioned or withheld, to the extent such Deferred Maintenance Condition or Environmental Condition is to be included in a Redevelopment Project (other than a Major Redevelopment Project) and such Redevelopment Project is commenced prior to the
time scheduled for completion on Schedule D-1 or Schedule D-2, as applicable, for the remediation of the applicable Deferred Maintenance Condition or Environmental Condition. In addition, to the extent any Deferred Maintenance
Condition or Environmental Condition is required to be remediated by SHLD Master Tenant pursuant to the terms of the SHLD Master Lease, Borrower shall be excused from the applicable obligations under this Section 5.2(b) so long as
Borrower diligently monitors and enforces any breach by SHLD Master Tenant of its obligations under the SHLD Master Lease with respect to the applicable Deferred Maintenance Condition or Environmental Conditions; provided that if SHLD Master
Tenant shall fail to remediate any such Deferred Maintenance Condition or Environmental Conditions within the time periods set forth in Schedule D-1 or Schedule D-2, as applicable (as modified pursuant to the terms of this
Section 5.2(b)), so long as (i) no Event of Default is then continuing, (ii) Borrower diligently and expeditiously proceeds to complete such remediation and (iii) the failure to complete remediation of such Deferred
Maintenance Condition or Environmental Condition within the time periods set 

  
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forth in Schedule D (as modified pursuant to the terms of this Section 5.2(b)) does not (A) involve matters imminent to protection of human health and safety,
(B) does not endanger any tenant, patron or other occupant of the Property or the general public and (C) does not materially and adversely affect the value of the Property or result in a default by Borrower under any Lease or Material
Agreement, SHLD Master Tenant shall have additional time to complete such remediation as may be requested by Borrower and/or SHLD Master Tenant and approved by Lender in its reasonable discretion. 

Section 5.3 Compliance with Legal Requirements. Borrower shall comply with, and Borrower shall cause the Properties to comply with
and be operated, maintained, repaired and improved in compliance with, all Legal Requirements, Insurance Requirements and all material contractual obligations by which Borrower is legally bound. 

Section 5.4 Impositions and Other Claims. Each of Borrower and JV Pledgor shall pay and discharge all taxes, assessments and
governmental charges levied upon it, its income and its assets as and when such taxes, assessments and charges are due and payable, as well as, with respect to Borrower, all lawful claims for labor, materials and supplies or otherwise, subject to
any rights to contest contained in the definition of Permitted Encumbrances or in this Agreement. Each of Borrower and JV Pledgor shall file all federal, state and local tax returns and other reports that it is required by law to file. If any law or
regulation applicable to Lender, any Note, any of the Collateral or any Mortgage is enacted that deducts from the value of property for the purpose of taxation any Lien thereon, or imposes upon Lender the payment of the whole or any portion of the
taxes or assessments or charges or Liens required by this Agreement to be paid by Borrower, or changes in any way the laws or regulations relating to the taxation of mortgages or security agreements or debts secured by mortgages or security
agreements or the interest of the mortgagee or secured party in the property covered thereby, or the manner of collection of such taxes, so as to affect any Mortgage, the Indebtedness or Lender, then Borrower, upon demand by Lender, shall pay such
taxes, assessments, charges or Liens, or reimburse Lender for any amounts paid by Lender. Following any such demand, Borrower shall have the right, upon 30 days advance written notice to Lender, to repay the Indebtedness in full (but not in part)
without the payment of any prepayment premium or prepayment fee. In addition, if in the opinion of Lender’s counsel it might be unlawful to require Borrower to make such payment or the making of such payment might result in the imposition of
interest beyond the maximum amount permitted by applicable law, Lender may elect to declare all of the Indebtedness to be due and payable 90 days from the giving of written notice by Lender to Borrower. Borrower and JV Pledgor shall not be required
to pay any taxes, assessments, governmental charges, or satisfy any Liens on the Collateral which Borrower or JV Pledgor, as applicable, in good faith disputes and which Borrower or JV Pledgor, as applicable, at its own expense, is currently and
diligently contesting, so long as (i) no Event of Default is then continuing, (ii) Borrower or JV Pledgor, as applicable, diligently prosecutes such dispute or contest in accordance with all applicable Legal Requirements to a prompt
determination in a manner not prejudicial to Lender and promptly pays all amounts ultimately determined to be owing, (iii) any applicable Lien is not in imminent danger of foreclosure and (iv) Borrower causes any applicable Lien
(a) to be released or discharged of record or fully insured over by the title insurance company issuing the Title Insurance Policies within 30 days of its creation, or (b) Borrower deposits with Lender, by the expiration of such 30-day period, an amount equal to 120 % of the dollar amount of such Lien or a bond in the aforementioned amount from such surety, and upon such terms and conditions, as is reasonably satisfactory to Lender, as
security for the payment or release of such Lien. 

  
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 Section 5.5 Inspection. Borrower shall permit agents, representatives and employees
of Lender and the Servicer to enter and inspect any of the Properties or any portion thereof, and/or inspect, examine, audit (including audit of the calculation of any tests required under this Agreement) and each of Borrower and JV Pledgor shall
permit agents, representatives and employees of Lender and the Servicer to copy the books and records of Borrower and JV Pledgor (including all recorded data of any kind or nature, regardless of the medium of recording), at such reasonable times
during normal business hours as may be requested by Lender upon reasonable advance notice. If an Event of Default is continuing, the cost of such inspections, examinations, copying or audits shall be borne by Borrower, including the cost of all
follow up or additional investigations, audits or inquiries deemed reasonably necessary by Lender. The cost of such inspections, examinations, audits and copying, if not paid for by Borrower within ten (10) Business Days following demand, may
be added to the Indebtedness and shall bear interest after such 10th Business Day until paid at the Default Rate. 

Section 5.6 Cooperate in Legal Proceedings. Borrower and JV Pledgor shall cooperate fully with Lender with respect to any
proceedings before any Governmental Authority that may in any way affect the rights of Lender hereunder or under any of the Loan Documents and, in connection therewith, Lender may, at its election, participate or designate a representative to
participate in any such proceedings. 
 Section 5.7 Leases. 

(a) Borrower shall furnish Lender with copies of all executed Leases. All new Leases and renewals or amendments which Borrower is obligated to
enter into, all renewals or amendments of Leases must (i) be entered into on an arm’s-length basis with Tenants that are not Affiliates of Borrower and whose identity and creditworthiness is
appropriate for tenancy in property of comparable quality, (ii) provide for rental rates and other economic terms that, taken as a whole, are at least equivalent to then-existing market rates, based on
the applicable market, and otherwise contain terms and conditions that are commercially reasonable, (iii) have an initial term of not more than 10 years, (iv) not reasonably be expected to result in a Property Material Adverse Effect and
(v) be subject and subordinate to the Mortgage and contain provisions for the agreement by the Tenant thereunder to attorn to Lender and any purchaser at a foreclosure sale, such attornment to be
self-executing and effective upon acquisition of title to the applicable Property by any purchaser at a foreclosure sale. Lender, at the request of Borrower (and at Borrower’s sole cost and expense),
shall enter into a subordination, attornment and non-disturbance agreement in the form of Exhibit G (with such modifications thereto as may be reasonably acceptable to Lender) or on such other form
reasonably satisfactory to Lender, with respect to any Lease entered into after the Closing Date that expressly requires the delivery of a subordination, attornment and non-disturbance agreement. 

(b) Any Lease that does not conform to the standards set forth in Section 5.7(a) shall be subject to the prior written consent of
Lender, which consent shall not be unreasonably withheld, delayed or conditioned. In addition, all new Major Leases, and all terminations, renewals (other than as to which Borrower is obligated pursuant to the applicable

  
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Lease) and amendments of Major Leases, and any surrender of rights under any Major Lease, shall be subject to the prior written consent of Lender (not to be unreasonably withheld);
provided that, in connection with the transfer of a Property to a New Borrower or in connection with the release of a Property in accordance with this Agreement, administrative and technical modifications to the SHLD Master Lease and
modifications to any Major Lease to modify the landlord thereunder will not require the consent of Lender. 
 (c) Borrower shall
(i) observe and punctually perform all obligations imposed upon the lessor under the Leases, including satisfaction of all Unfunded Obligations, in each case where the failure to do so would reasonably be expected to have a Property Material
Adverse Effect; (ii) enforce all terms, covenants and conditions contained in the Leases on the part of the lessee thereunder to be observed or performed, short of termination thereof, in each case where the failure to do so would reasonably be
expected to have a Property Material Adverse Effect, except that Borrower may terminate any Lease following a material default thereunder by the respective Tenant; (iii) not collect any of the rents thereunder more than one month in advance;
(iv) not execute any assignment of lessor’s interest in the Leases or associated rents other than the assignment of rents and leases under the Mortgage; (v) not cancel or terminate any guarantee (including, without limitation, the
SHLD Master Lease Guaranty) of any of the Major Leases without the prior written consent of Lender (not to be unreasonably withheld); and (vi) not permit any subletting of any space covered by a Lease or an assignment of the Tenant’s
rights under a Lease, except in strict accordance with the terms of such Lease. Borrower shall deliver to each new Tenant a Tenant Notice upon execution of such Tenant’s Lease, and promptly thereafter deliver to Lender a copy thereof and
evidence of such Tenant’s receipt thereof. 
 (d) Security deposits of Tenants under all Leases shall be held in compliance with Legal
Requirements and any provisions in Leases relating thereto. Borrower shall maintain books and records of sufficient detail to identify all security deposits of Tenants separate and apart from any other payments received from Tenants. Subject to
Legal Requirement, any bond or other instrument held by Borrower in lieu of cash security shall name Lender as payee or mortgagee thereunder or be fully assignable to Lender. Borrower hereby pledges to Lender each such bond or other instrument as
security for the Indebtedness. Upon the occurrence and during the continuance of an Event of Default, Borrower shall, upon Lender’s request, deposit with Lender in an Eligible Account pledged to Lender all security deposits of the Tenants (and
any interest theretofore earned on such security deposits and actually received by Borrower), and any such bonds, that Borrower had not returned to the applicable Tenants or applied in accordance with the terms of the applicable Lease; (and failure
to do so shall constitute a misappropriation of funds pursuant to Section 9.19(b)); provided that Lender shall hold, or cause Servicer to hold, any such security deposited in an Eligible Account pledged to Lender in accordance
with the applicable Leases and the applicable Legal Requirements. 
 (e) Borrower shall promptly deliver to Lender a copy of each written
notice from a Tenant under any Major Lease claiming that Borrower is in default in the performance or observance of any of the material terms, covenants or conditions thereof to be performed or observed by Borrower. Borrower shall use commercially
reasonable efforts to provide in each Major Lease executed after the Closing Date to which Borrower is a party that any Tenant delivering any such notice shall send a copy of such notice directly to Lender. 

  
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 (f) To the extent reasonably practicable, all agreements entered into by or on behalf of Borrower
that require the payment of Leasing Commissions or other similar compensation to any party shall (i) provide that the obligation will not be enforceable against Lender and (ii) be subordinate to the lien of the Mortgage. 

(g) Borrower is expressly permitted to exercise any and all recapture rights under the SHLD Master Lease (including 50% recaptures and 100%
lease terminations, so long as Borrower complies with this Section 5.7(g)); provided, however, that such exercise of recapture rights will not be permitted (i) unless the Debt Yield (after giving effect to such
recapture or lease termination) as of the end of the most recently ended Test Period is at least 12% (the “Recapture Threshold”), or (ii) without consent of Lender, at any time prior to delivery of the Business Plans, if
recapture would require payments to SHLD Master Tenant and/or investments in recaptured properties in an aggregate amount in excess of $37,500,000 (it being agreed that, prior to delivery of the Business Plans, Borrower shall nevertheless consult
with Lender on any recapture not requiring Lender’s consent), or (iii) without the prior written consent of Lender in its sole discretion, if such recapture is not in substantial compliance with the applicable Recapture Plan previously
approved by Lender to the extent required by Section 5.23 or, with respect to any Designated Property, the related Approved Designated Property Redevelopment Plan (as amended consistent with Section 5.22(h)) or
(iv) without the prior written consent of Lender in its sole discretion if an Event of Default is then continuing. If the Debt Yield is below the Recapture Threshold as of the end of the most recently ended Test Period, exercise of any
recapture rights by Borrower shall be conditioned on execution and delivery of a Qualified Replacement Lease or the consent of Lender. If the Debt Yield is below the Recapture Threshold and Lender shall not consent to any proposed recapture, the
Borrower will be permitted to obtain a release of the applicable Property upon satisfaction of the conditions set forth in Section 2.2(a), except that the Release Price with respect to such Property shall be equal to 200% of the
applicable Allocated Loan Amount plus any otherwise applicable Spread Maintenance Premium (and any such release shall be deemed a release of a Property in accordance with Section 2.2 for all purposes of this Agreement). Unless otherwise
approved as part of a Redevelopment Project, Lease termination fees payable by Borrower to the SHLD Master Tenant under the SHLD Master Lease in connection with the exercise of Borrower’s recapture rights shall only be paid from (y) Excess
Cash Flow released to Borrower in accordance with Section 3.2(b) and/or Termination Fees received by Borrower from Tenant and deposited in the TI/LC Reserve Account in accordance with Section 3.5(d) or (z) equity
contributions from Guarantor. 
 (h) Whenever Lender’s approval or consent is required pursuant to the provisions of this Section,
Lender’s consent and approval shall be deemed given if: 
 (i) the first correspondence from Borrower to Lender
requesting such approval or consent contains a bold-faced, conspicuous legend at the top of the first page thereof stating “FIRST NOTICE: THIS IS A REQUEST FOR CONSENT TO A [NEW LEASE]
[LEASE MODIFICATION]. FAILURE TO RESPOND TO THIS REQUEST WITHIN 5 BUSINESS DAYS MAY RESULT IN THE REQUEST BEING DEEMED GRANTED,” and is accompanied by such information and documents as is reasonably required for Lender to
adequately evaluate such request and as requested by Lender in writing prior to the expiration of such 5 Business Day period, and 

  
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 (ii) if Lender fails to respond to such request for approval or consent in
writing within such 5 Business Day period (and in the case of withholding of consent, stating the grounds therefor), a second notice requesting approval is delivered to Lender from Borrower containing a
bold-faced, conspicuous legend at the top of the first page thereof stating that “SECOND AND FINAL NOTICE: THIS IS A REQUEST FOR CONSENT TO A [NEW LEASE] [LEASE MODIFICATION]. FAILURE
TO RESPOND TO THIS REQUEST IN WRITING WITHIN 5 BUSINESS DAYS WILL RESULT IN YOUR APPROVAL BEING DEEMED GRANTED,” and is accompanied by such information and documents as is reasonably required for Lender to adequately evaluate such request and
as requested by Lender in writing prior to the expiration of such 5 Business Day period, and 
 (iii) Lender fails to respond
to such request (and in the case of withholding of consent, stating the grounds therefor) prior to the expiration of such second period. 

Section 5.8 Plan Assets, etc.. Borrower and JV Pledgor, as applicable, will do or cause to be done, all things necessary to cause
the representations set forth in Section 4.9 to remain true and correct at all times. 
 Section 5.9 Further
Assurances. Borrower and JV Pledgor shall, at Borrower’s sole cost and expense, from time to time as reasonably requested by Lender, execute, acknowledge, record, register, file and/or deliver to Lender such other instruments, agreements,
certificates and documents (including amended or replacement mortgages), and each of Borrower and JV Pledgor hereby authorizes and consents to the filing by Lender of any Uniform Commercial Code financing statements, and hereby authorizes Lender to
use the collateral description “all personal property” or “all assets” in any such financing statements, in each case as Lender may reasonably request to evidence, confirm, perfect and maintain the Liens securing or intended to
secure the obligations of Borrower and the rights of Lender under the Loan Documents and do and execute all such further lawful and reasonable acts, conveyances and assurances for the better and more effective carrying out of the intents and
purposes of this Agreement and the other Loan Documents as Lender shall reasonably request from time to time. Upon foreclosure, the appointment of a receiver or any other relevant action, Borrower and JV Pledgor shall, at its sole cost and expense,
cooperate fully and completely to effect the assignment or transfer of any license, permit, agreement or any other right necessary or useful to the operation of the Collateral or the JV Collateral, as applicable. Upon receipt of a reasonably
satisfactory affidavit of Lender as to the loss, theft, destruction or mutilation of any Note (which affidavit shall include an indemnification of Borrower that is reasonably satisfactory to Borrower), Borrower will issue, in lieu thereof, a
replacement Note in the same principal amount thereof and in the form thereof. Each of Borrower and JV Pledgor hereby authorizes and appoints Lender as its
attorney-in-fact to, during the continuance of an Event of Default, execute, acknowledge, record, register and/or file such instruments, agreements, certificates and
documents, and to do and execute such acts, conveyances and assurances, should Borrower or JV Pledgor fail to do so itself in violation of this Agreement or the other Loan Documents following written request from Lender, in each case without the
signature of Borrower or JV Pledgor, as applicable. The foregoing grant of authority is a power of attorney coupled with an interest and such appointment shall be irrevocable for the term of this Agreement. Each of Borrower and JV Pledgor hereby
ratifies all actions that such attorney shall lawfully take or cause to be taken in accordance with this Section. 

  
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 Section 5.10 Management of Collateral. 

(a) Each Property shall be managed at all times by an Approved Property Manager pursuant to an Approved Management Agreement; provided
that prior to the Multi-Tenant Occupancy Date with respect to any Property, no Approved Property Manager shall be required with respect to such Property. Borrower may from time to time appoint one or more
Approved Property Managers to manage one or more of the Properties pursuant to an Approved Management Agreement; provided that (i) no Event of Default is then continuing, (ii) Lender receives at least 30 days prior written notice of
same, (iii) such manager shall execute and deliver to Lender for Lender’s benefit a Subordination of Property Management Agreement containing customary terms and in form and substance reasonably satisfactory to Lender, and (iv) if
such Approved Property Manager is an Affiliate of Borrower, Borrower shall deliver to Lender a new nonconsolidation opinion reasonably acceptable to Lender with respect to such Approved Property Manager and new management agreement. The per annum
base fees of any Approved Property Manager shall not, at any time, exceed the Maximum Management Fee without the prior approval of Lender in its reasonable discretion. 

(b) Borrower shall cause each Approved Management Agreement to require that the applicable Approved Property Manager (including any successor
Approved Property Manager) maintain at all times worker’s compensation insurance as required by Governmental Authorities. 
 (c)
Borrower shall notify Lender in writing of any material default of Borrower or the Approved Property Manager under the Approved Management Agreement, after the expiration of any applicable cure periods, of which Borrower has actual knowledge. Lender
shall have the right, after reasonable notice to Borrower and in accordance with the Subordination of Management Agreement, to cure defaults of Borrower under the Approved Management Agreement. Any reasonable out-of-pocket expenses actually incurred by Lender to cure any such default shall constitute a part of the Indebtedness and shall be due from Borrower within ten (10) Business Days after demand by
Lender. 
 (d) In the event that (i) an Event of Default shall be continuing, (ii) any foreclosure, conveyance in lieu of
foreclosure or other similar transaction following an Event of Default shall have occurred, (iii) a material default by the Approved Property Manager under the Approved Management Agreement (after the expiration of any applicable notice and/or
cure periods) shall be continuing, (iv) the Approved Property Manager files or is the subject of a petition in bankruptcy or similar insolvency proceeding, (v) a trustee or receiver is appointed for the Approved Property Manager’s
assets or the Approved Property Manager makes an assignment for the benefit of creditors, (vi) the Approved Property Manager is adjudicated insolvent or (vii) the Approved Property Manager engages in fraud, misappropriation of funds,
intentional misrepresentation or willful misconduct in the course of managing any of the Properties, then, in any such case, Lender may, in its sole discretion, terminate or require Borrower to terminate the Approved Management Agreement and engage
an Approved Property Manager selected by Borrower and reasonably satisfactory to Lender (or, during the continuance of an Event of Default, selected by Lender with notice to Borrower) to serve as replacement Approved Property Manager pursuant to an
Approved Management Agreement. 

  
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 Section 5.11 Notice of Material Event. Upon Borrower becoming aware of same, Borrower
shall give Lender prompt notice (containing reasonable detail) of (i) any material change in the financial or physical condition of any of the Properties, as reasonably determined by Borrower, including the termination or cancellation of any
Major Lease (or the closure of a SHLD store) and the termination or cancellation of terrorism or other insurance required by this Agreement, (ii) any notice from the Approved Property Manager, to the extent such notice relates to a matter that
could reasonably be expected to result in a Property Material Adverse Effect, (iii) any litigation or governmental proceedings pending or threatened in writing against Borrower, Guarantor or any Property that is reasonably expected to result in
a Property Material Adverse Effect, (iv) the insolvency or bankruptcy filing of any Required SPE, Guarantor or a Subsidiary of any of the foregoing, (v) any Mezzanine Loan Event of Default, (vi) any material change in the scope of, or
termination of, any services provided by SHMC under the SHLD TSA or the Subordination of Property Management Agreement and (vii) any other circumstance or event that could reasonably be expected to result in a Material Adverse Effect or
Property Material Adverse Effect. 
 Section 5.12 Annual Financial Statements; Format for Statements. 

(a) As soon as available, and in any event within 90 days after the close of each Fiscal Year, Borrower shall furnish to Lender annual
financial statements of Borrower, including a balance sheet and operating statement of Borrower as of the end of such year, together with related statements of operations and equityholders’ capital and cash flow for such Fiscal Year, audited by
a “Big Four” accounting firm (or other independent accounting firm reasonably satisfactory to Lender) whose opinion shall be to the effect that such financial statements have been prepared in accordance with GAAP applied on a consistent
basis and shall not be qualified as to the scope of the audit or as to the status of Borrower as a going concern. Such financial statements shall set forth in comparative form the corresponding figures for the preceding Fiscal Year (to the extent
prior year financial statements for the applicable period exist). Together with Borrower’s audited annual financial statements, Borrower shall furnish to Lender a comparison of Borrower’s applicable audited financial results against the
corresponding figures in the Approved Annual Budget for such Fiscal Year. Notwithstanding the foregoing, prior to the Diversification Date, in lieu of the audited financial statements described above, as soon as available, and in any event within 90
days after the close of each Fiscal Year, Borrower shall furnish to Lender unaudited annual financial statements of Borrower, including a balance sheet and operating statement of Borrower as of the end of such year, together with related statements
of operations and equityholders’ capital and cash flow for such Fiscal Year, which statements shall be accompanied by an Officer’s Certificate certifying that the same are true, correct and complete in all material respects and were
prepared in accordance with GAAP applied on a consistent basis. Such financial statements shall set forth in comparative form the corresponding figures for the preceding Fiscal Year (to the extent prior year financial statements for the applicable
period exist). Together with Borrower’s unaudited annual financial statements, Borrower shall furnish to Lender comparison of Borrower’s applicable audited financial results against the corresponding figures in the Approved Annual Budget
for such Fiscal Year. Such annual financial statements shall be accompanied by the reports set forth in Sections 5.13(i) and (iii) for the Fiscal Year then ended. 

  
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 (b) All financial and other reports required to be delivered hereunder, including pursuant to
Section 5.12 through 5.14, shall be delivered in an Excel spreadsheet file in electronic format to the extent reasonably available, or, in the case of predominantly text documents, in Adobe pdf format to the extent reasonably
available. All such reports may be delivered via an intralinks site at Borrower’s sole cost and expense. 
 Section 5.13
Quarterly Financial Statements. As soon as available, and in any event within 45 days after the end of each Fiscal Quarter (and, subject to the limitation below, including year-end), Borrower shall
furnish to Lender, quarterly and year-to-date unaudited financial statements, prepared for such fiscal quarter with respect to Borrower, including a balance sheet and
operating statement of Borrower as of the end of such Fiscal Quarter, together with related statements of operations, equityholders’ capital and cash flows for such Fiscal Quarter and for the portion of the Fiscal Year ending with such Fiscal
Quarter, setting forth in comparative form the corresponding figures for the same period(s) for the preceding Fiscal Year (to the extent prior year financial statements for the applicable period exist), which statements shall be accompanied by an
Officer’s Certificate certifying that the same are true, correct and complete in all material respects and were prepared in accordance with GAAP applied on a consistent basis, subject to changes resulting from audit and normal year-end audit adjustments. Each such quarterly report shall be accompanied by the following: 

(i) a statement in reasonable detail that calculates each of Debt Yield, In-Place NOI,
Third Party In-Place NOI and the SHLD EBITDAR Rent Ratio for the Test Period ending in such Fiscal Quarter; 

(ii) (a) a comparison of Borrower’s quarterly unaudited financial results against the corresponding figures in the
Approved Annual Budget for such period and year-to-date, (b) a comparison of
Property-by-Property quarterly operating results against the corresponding figures in the Approved Annual Budget for such Fiscal Quarter and year-to-date and (c) a statement of Borrower’s unaudited operating results (on a
Property-by-Property basis) for the trailing twelve-month period ending in such Fiscal Quarter; 

(iii) SHLD EBITDAR (on a portfolio and
store-by-store basis); 
 (iv) a report on
the status of implementation of the Corporate Business Plan; and 
 (v) such other information as Lender shall reasonably
request. 
 Notwithstanding the foregoing, the year-end delivery pursuant to this Section 5.13 shall be
limited to a good faith, preliminary draft income statement, draft calculation of In-Place NOI, Third Party In-Place NOI, Debt Yield and, to the extent the SHLD Master
Tenant has delivered the necessary supporting information to Borrower, the SHLD EBITDAR Rent Ratio. 

  
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 Section 5.14 Monthly Financial Statements; Other Reporting. 

(a) Borrower shall furnish within 30 days after the end of each calendar month (other than the final calendar month of any Fiscal Year or
Fiscal Quarter), monthly and year-to-date unaudited operating statements (on a
Property-by-Property basis) as of the end of such month, setting forth in comparative form the corresponding figures for the same period(s) in the preceding Fiscal Year
(to the extent prior year financial statements for the applicable period exist). Each monthly report shall also include the following (whether or not operating statements are required to be delivered in accordance with this
Section 5.14): 
 (i) then current rent roll, aged payables and aged receivables reports (on a Property-by-Property basis); 
 (ii) Tenant sales
reports (on a Property-by-Property basis, including SHLD Master Tenant store-level sales, and as to other Leases, to the extent
reasonably available); 
 (iii) occupancy and leasing pipeline reports (on a Property-by-Property basis); 
 (iv) details regarding any termination and/or
recapture rights exercised under the SHLD Master Lease in the prior calendar month or expected to be exercised in the subsequent 90-day period (on a Property-by-Property basis); 
 (v) a report of Capital Expenditures, Tenant
Improvements and Leasing Commissions incurred on a cash basis in the such calendar month, year-to-date and for the trailing twelve-month period (on a Property-by-Property basis);] 
 (vi) a statement
of Borrower’s operating results (on a Property-by-Property basis) for the trailing twelve-month period ending in such calendar month; and 

(vii) such other information as Lender shall reasonably request. 

(b) Borrower shall promptly, and in any event within five Business Days following delivery or receipt thereof, provide Lender copies of:
(i) any reports provided to Borrower pursuant to Section 21.24 of the SHLD Master Lease; (ii) all notices of exercise of any termination or recapture rights under the SHLD Master Lease; (iii) notices with respect to any change to
the base rent and/or monthly installment expenses payable under the SHLD Master Lease; (iv) notices with respect to proposed modifications to the SHLD Master Lease; (v) notices with respect to any default or dispute under the SHLD Master
Lease; and (vi) copies of all other reports, notices or other information relating to the SHLD Master Lease not provided pursuant to the preceding clauses (i) through (v) as Lender shall reasonably request. 

Section 5.15 Insurance. 

(a) Borrower shall obtain and maintain with respect to the Properties, for the mutual benefit of Borrower and Lender at all times, the
following policies of insurance: 
 (i) insurance against loss or damage by standard perils included within the
classification “All Risks” or “Special Form” Causes of Loss, including coverage for damage caused by windstorm (including named storm) and hail. Such insurance shall 

  
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(A) be in an amount equal to the full insurable value on a replacement cost basis of each Property and, if applicable, all related furniture, furnishings, equipment and fixtures (without
deduction for physical depreciation); (B) have deductibles acceptable to Lender (but in any event not in excess of $250,000, except in the case of windstorm, flood and earthquake coverage, which shall have deductibles not in excess of 5% of the
total insurable value of the applicable Property); (C) be paid annually in advance; (D) be written on a “Replacement Cost” basis, waiving depreciation, (E) be written on a no coinsurance form or contain an “Agreed
Amount” endorsement, waiving all coinsurance provisions; (F) include ordinance or law coverage on a replacement cost basis, with no co-insurance provisions, containing Coverage A: “Loss Due to
Operation of Law” (with a limit equal to replacement cost), Coverage B: “Demolition Cost” and Coverage C: “Increased Cost of Construction” coverages each with limits of no less than 10% of replacement cost or such lesser
amounts as Lender may require in its sole discretion; (G) permit that the improvements and other property covered by such insurance be rebuilt at another location in the event that such improvements and other property cannot be rebuilt at the
location on which they are situated as of the date hereof. If such insurance excludes mold, then Borrower shall implement a mold prevention program satisfactory to Lender; 

(ii) if any portion of the Improvements at any Property is located in an area identified in the Federal Register by the Federal
Emergency Management Agency as having special flood hazards, flood insurance in an amount equal to the maximum limit of coverage available under the National Flood Insurance Program, with a deductible not in excess of $50,000, plus such additional
excess limits as shall be requested by Lender; 
 (iii) commercial general liability insurance, including broad form coverage
of property damage, contractual liability for insured contracts and personal injury (including bodily injury and death), to be on the so-called “occurrence” form containing minimum limits per
occurrence of not less than $1,000,000 with not less than a $2,000,000 general aggregate for any policy year (with a per location aggregate if any Property is insured under a blanket policy), with a deductible not in excess of $250,000. In addition,
at least $100,000,000 excess and/or umbrella liability insurance shall be obtained and maintained for any and all claims, including all legal liability imposed upon Borrower and all related court costs and attorneys’ fees and disbursements;

 (iv) rental loss and/or business interruption insurance covering actual loss sustained during restoration from all risks
required to be covered by the insurance provided for herein, including clauses (i), (ii), (v), (vii), (viii) and (ix) of this Section, and covering the entire period of restoration beginning from
the date of any Casualty and containing an extended period of indemnity endorsement covering the 12-month period commencing on the date on which the applicable Property has been restored, as reasonably
determined by the applicable insurer (even if the policy will expire prior to the end of such period). The amount of such insurance shall be increased from time to time as and when the gross revenues from the Properties increase; 

(v) insurance for steam boilers, air conditioning equipment, high pressure piping, machinery and equipment, pressure vessels or
similar apparatus now or hereafter 

  
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installed in any of the improvements (without exclusion for explosions) and insurance against loss of occupancy or use arising from any breakdown, in such amounts as are generally available and
are generally required by institutional lenders for properties comparable to the Properties, in each case, with a deductible not in excess of $250,000; 

(vi) worker’s compensation insurance with respect to all employees of Borrower as and to the extent required by any
Governmental Authority or Legal Requirement and employer’s liability coverage of at least $1,000,000 (if applicable); 

(vii) during any period of repair or restoration, and only if the property and liability coverage forms do not otherwise apply,
commercial general liability and umbrella liability insurance covering claims related to the repairs or restoration at the Properties that are not covered by or under the terms or provisions of the insurance provided for in
Section 5.15(a)(iii) (and the insurance provided for in Section 5.15(a)(i) shall, in addition to the requirements set forth in such Section, (1) be written in a so-called
builder’s risk completed value form or equivalent coverage, including coverage for 100% of the total costs of construction on a non-reporting basis and against all risks insured against pursuant to
clauses (i), (ii), (iv), (v), (viii) and (ix) of Section 5.15(a) and (2) include permission to occupy the applicable Property); 

(viii) earthquake insurance for any Property located in seismic zone 3 or 4 (A) with minimum coverage equivalent to
1.0x SEL (scenario expected loss) multiplied by the full replacement cost of the building plus business income, (B) having a deductible not in excess of 5% of the total insurable value of the applicable Property, and (C) if any
Property is legally nonconforming under applicable zoning ordinances and codes, containing ordinance of law coverage in amounts as required by Lender; 

(ix) so long as the Terrorism Risk Insurance Program Reauthorization Act of 2007 (“TRIPRA”) or a similar or
subsequent statute is in effect, terrorism insurance for foreign and domestic acts (as such terms are defined in TRIPRA or similar or subsequent statute) in an amount equal to the full replacement cost of the Properties (plus twelve months of
business interruption coverage). If TRIPRA or a similar or subsequent statute is not in effect, then provided that terrorism insurance is commercially available, Borrower shall be required to carry terrorism insurance throughout the term of the Loan
as required by the preceding sentence, but in such event Borrower shall not be required to spend on terrorism insurance coverage more than two times the amount of the insurance premium that is payable at such time in respect of the property and
business interruption/rental loss insurance required hereunder on a stand-alone basis (without giving effect to the cost of terrorism components of such casualty and business interruption/rental loss
insurance), and if the cost of terrorism insurance exceeds such amount, Borrower shall purchase the maximum amount of terrorism insurance available with funds equal to such amount. In either such case, such insurance shall not have a deductible in
excess of $250,000; 
 (x) auto liability coverage for all owned and non-owned
vehicles, including rented and leased vehicles containing minimum limits per occurrence of $1,000,000 (if applicable); and 

  
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 (xi) such other insurance as may from time to time be requested by Lender. 

(b) All policies of insurance (the “Policies”) required pursuant to this Section shall be issued by one or more insurers
having a rating of at least (1) “A” by S&P and “A2” by Moody’s, if Moody’s is rating the Certificates, or by a syndicate of insurers through which at least 75% of the coverage (if there are 4 or fewer members
of the syndicate) or at least 60% of the coverage (if there are 5 or more members of the syndicate) is with insurers having such ratings (provided that all such insurers shall have ratings of not less than “BBB+” by S&P and
“Baa1” by Moody’s, if Moody’s is rating the Certificates) and (2) “A X” or better by A.M. Best. Notwithstanding anything to the contrary contained herein, (x) Borrower shall be permitted to maintain the
Policies required hereunder with Ironshore Specialty Insurance Company in its current participation amount and position within the syndicate (“Ironshore”), provided Borrower obtains reinsurance with a “cut-through”
endorsement, acceptable to Lender and the Rating Agencies, with respect to Ironshore, from an insurance company which meets the claims-paying ability ratings above and (y) Borrower may maintain the insurance coverage described in and required
by Section 5.15(a) with the insurers under the Policies that are not rated with Moody’s as of the Closing Date, provided that such insurers maintain no less than the claims paying ability rating applicable thereto with AM Best and the
Rating Agencies in effect on the Closing Date. 
 (c) All Policies required pursuant to this Section: 

(i) shall contain deductibles that, in addition to complying with any other requirements expressly set forth
in Section 5.15(a), are approved by Lender (such approval not to be unreasonably withheld, delayed or conditioned, but subject to the requirements of each Rating Agency) and are no larger than is customary for similar policies covering
similar properties in the geographic markets in which the Properties are located; 
 (ii) shall be maintained throughout the
term of the Loan without cost to Lender and shall name Borrower as the named insured; 
 (iii) with respect to casualty and
rental or business interruption insurance policies, shall contain a standard noncontributory mortgagee clause naming Lender and its successors and assigns as their interests may appear as first mortgagee and loss payee; 

(iv) with respect to liability policies, except for workers compensation, employers liability and auto liability, shall name
Lender and its successors and assigns as their interests may appear as additional insureds and, if available using commercially reasonable efforts, shall contain an endorsement or other provision providing that Lender shall receive at least 30
days’ prior written notice of cancellation thereof (or, in the case of cancellation due to non-payment of premium, 10 days’ prior written notice); 

(v) with respect to casualty and rental or business interruption insurance policies, shall either be written on a no
coinsurance form or contain an endorsement providing that neither Borrower nor Lender nor any other party shall be a co-insurer under such Policies; 

  
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 (vi) with respect to casualty and rental or business interruption insurance
policies, and shall contain an endorsement or other provision providing that Lender shall receive at least 30 days’ prior written notice of cancellation thereof (or, in the case of cancellation due to
non-payment of premium, 10 days’ prior written notice); 
 (vii) with respect to
casualty and rental or business interruption insurance policies, shall contain an endorsement providing that no act or negligence of Borrower or any foreclosure or other proceeding or notice of sale relating to the Properties shall affect the
validity or enforceability of the insurance insofar as a mortgagee is concerned; 
 (viii) shall not contain provisions that
would make Lender liable for any insurance premiums thereon or subject to any assessments thereunder; 
 (ix) shall contain a
waiver of subrogation against Lender, as applicable; 
 (x) may be in the form of a blanket policy; provided that
Borrower shall provide evidence satisfactory to Lender that the insurance premiums for the Properties are separately allocated to the Properties, and such blanket policy shall provide the same protection as would a separate Policy as determined by
Lender, subject to review and approval by Lender based on the schedule of locations and values, portfolio PML reports for the catastrophic perils of earthquake and windstorm/named storm, and such other information as requested by Lender or the
Rating Agencies; provided, further, that in no event shall Borrower have less coverage than exists as of the Closing Date unless there is a corresponding proportionate reduction in the values of the locations covered under the policy.
Borrower shall notify Lender of any material changes to the blanket policy and associated limits under the policy as of Closing Date or an aggregation of the insured values covered under the blanket policy, including the reduction of earthquake,
flood or wind/named storm limits or the addition of locations that are subject to the perils of earthquake, flood or wind/named storm, and such changes shall be subject Lender’s approval; and 

(xi) shall otherwise be reasonably satisfactory in form and substance to Lender and shall contain such other provisions as
Lender deems reasonably necessary or desirable to protect its interests. 
 (d) Borrower shall pay the premiums for all Policies as the same
become due and payable. Complete copies of such Policies shall be delivered to Lender promptly upon request. Not later than 20 days prior to the expiration date of each Policy, Borrower shall deliver to Lender evidence, reasonably satisfactory to
Lender, of its renewal. Borrower shall promptly forward to Lender a copy of each written notice received by Borrower of any modification, reduction or cancellation of any of the Policies or of any of the coverages afforded under any of the Policies.
Within 30 days after request by Lender, Borrower shall obtain such increases in the amounts of coverage required hereunder as may be reasonably requested by Lender, taking into consideration changes in the value of money over time, changes in
liability laws, changes in prudent customs and practices, and the like. 

  
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 (e) Borrower shall not procure any other insurance coverage that would be on the same level of
payment as the Policies or would adversely impact in any way the ability of Lender or Borrower to collect any proceeds under any of the Policies. If at any time Lender is not in receipt of written evidence that all Policies are in full force and
effect when and as required hereunder, Lender shall have the right to take such action as Lender deems necessary to protect its interest in the Properties, including the obtaining of such insurance coverage as Lender in its sole discretion deems
appropriate (but limited to the coverages and amounts required hereunder). All premiums, costs and expenses (including attorneys’ fees and expenses) incurred by Lender in connection with such action or in obtaining such insurance and keeping it
in effect shall be paid by Borrower to Lender upon demand and, until paid, and shall bear interest at the Default Rate. 
 (f) In the event
of foreclosure of one or more of the Mortgages or other transfer of title to one or more of the Properties in extinguishment in whole or in part of the Indebtedness, all right, title and interest of Borrower in and to the Policies then in force with
respect to such Properties and all proceeds payable thereunder shall thereupon vest in the purchaser at such foreclosure or in Lender or other transferee in the event of such other transfer of title. 

Section 5.16 Casualty and Condemnation. 

(a) Borrower shall give prompt notice to Lender of any Material Casualty Event or a Material Condemnation Event or of the actual or threatened
commencement of proceedings that would result in a Material Condemnation Event. 
 (b) Lender may participate in any proceedings for any
taking by any public or quasi-public authority accomplished through a Material Condemnation Event or any transfer made in lieu of or in anticipation of a Material Condemnation Event, to the extent permitted by
law. Upon Lender’s request, Borrower shall deliver to Lender all instruments reasonably requested by it to permit such participation. Borrower shall, at its sole cost and expense, diligently prosecute any such proceedings, and shall consult
with Lender, its attorneys and experts, and cooperate with them in the carrying on or defense of any such proceedings. Borrower shall not consent or agree to a Material Condemnation Event or action in lieu thereof without the prior written consent
of Lender in each instance, not to be unreasonably withheld. 
 (c) Lender may (x) jointly with Borrower settle and adjust any claims,
(y) during the continuance of an Event of Default, settle and adjust any claims without the consent or cooperation of Borrower, or (z) allow Borrower to settle and adjust any claims; except that if no Event of Default or Cash Flow Sweep
Period is continuing, Borrower may settle and adjust claims aggregating not in excess of the Threshold Amount if such settlement or adjustment is carried out in a competent and timely manner, but, subject in all cases to Section 5.16(h),
Lender shall be entitled to collect and receive (as set forth below) any and all Loss Proceeds. The reasonable expenses incurred by Lender in the adjustment and collection of Loss Proceeds shall become part of the Indebtedness and shall be
reimbursed by Borrower to Lender upon demand therefor. 

  
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 (d) All Loss Proceeds from any Casualty or Condemnation that does not constitute a Material
Casualty Event or a Material Condemnation Event, as applicable, may be paid directly to the Borrower. All Loss Proceeds from any Material Casualty Event or Material Condemnation Event shall, subject in all cases to Section 5.16(h), be
immediately deposited into the Loss Proceeds Account (monthly rental loss/business interruption proceeds to be initially deposited into the Loss Proceeds Account and subsequently deposited into the Cash Management Account in installments as and when
the lost rental income covered by such proceeds would have been payable). Following the occurrence of a Casualty, Borrower, regardless of whether Loss Proceeds are sufficient, shall in a reasonably prompt manner proceed to restore, repair, replace
or rebuild the applicable Property to be of at least equal value and of substantially the same character as prior to the Casualty, all in accordance with the terms hereof applicable to Alterations. If, at any Property, any Material Casualty Event or
Material Condemnation Event or Casualty occurs as to which, in the reasonable judgment of Lender: 
 (i) in the case of a
Casualty, the cost of restoration would not exceed 35% of the applicable Allocated Loan Amount and the Casualty does not render untenantable, or result in the cancellation of Leases covering, more than 35% of the gross rentable area of such
Property, or result in cancellation of Leases covering more than 35% of the base contractual rental revenue of such Property; 

(ii) in the case of a Condemnation, the Condemnation does not render untenantable, or result in the cancellation of Leases
covering, more than 25% of the gross rentable area of such Property; 
 (iii) restoration of such Property is reasonably
expected to be completed prior to the expiration of rental interruption insurance and at least six months prior to the Maturity Date (taking into account any extension option that has been exercised by Borrower); 

(iv) after such restoration, the fair market value of such Property is reasonably expected to equal at least the fair market
value of such Property immediately prior to such Condemnation or Casualty (assuming the affected portion of such Property is relet); and 

(v) all necessary approvals and consents from Governmental Authorities will be obtained to allow the rebuilding and re-occupancy of such Property in compliance with applicable Legal Requirements; 
 or if Lender otherwise elects to allow
Borrower to restore such Property, then, provided no Event of Default is continuing, the Loss Proceeds after receipt thereof by Lender and reimbursement of any reasonable expenses incurred by Lender in connection therewith shall be applied to the
cost of restoring, repairing, replacing or rebuilding such Property or part thereof subject to the Casualty or Condemnation, in the manner set forth below (and Borrower shall commence, as promptly and diligently as practicable, to prosecute such
restoring, repairing, replacing or rebuilding of such Property in a workmanlike fashion and in accordance with applicable law to a status at least equivalent to the quality and character of such Property immediately prior to the Condemnation or
Casualty). Provided that no Event of Default shall have occurred and be then 

  
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continuing, Lender shall disburse such Loss Proceeds to Borrower upon Lender’s being furnished with (i) evidence reasonably satisfactory to it of the estimated cost of completion of the
restoration, (ii) if the cost of completion of the restoration plus payment of debt service on the Loan and funding of required reserves under this Agreement during the period of restoration exceeds the amount then contained in the Loss
Proceeds Account, funds in an amount equal to such excess, which funds shall be remitted into the Loss Proceeds Account as additional Collateral for the Loan, and (iii) such architect’s certificates, waivers of lien, contractor’s
sworn statements, title insurance endorsements, bonds, plats of survey and such other evidences of cost, payment and performance as Lender may reasonably request; and Lender may, in any event, require that all plans and specifications for
restoration reasonably estimated by Lender to exceed the Threshold Amount be submitted to and approved by Lender prior to commencement of work (which approval shall not be unreasonably withheld, delayed or conditioned). If Lender reasonably
estimates that the cost to restore will exceed the Threshold Amount, Lender may retain a local construction consultant to inspect such work and review Borrower’s request for payments and Borrower shall, on demand by Lender, reimburse Lender for
the reasonable fees and expenses of such consultant (which fees and expenses shall constitute Indebtedness). Retention as to progress payments to contractors shall be in accordance with the customary practices in the area that includes the
applicable Property, as reasonably determined by Borrower. Funds other than Loss Proceeds shall be disbursed prior to disbursement of such Loss Proceeds, and at all times the undisbursed balance of such proceeds remaining in the Loss Proceeds
Account, together with any additional funds irrevocably and unconditionally deposited therein or irrevocably and unconditionally committed for that purpose, shall be at least sufficient in the reasonable judgment of Lender to pay for the cost of
completion of the restoration free and clear of all Liens or claims for Lien. 
 (e) Borrower shall cooperate with Lender in obtaining for
Lender the benefits of any Loss Proceeds lawfully or equitably payable to Lender in connection with any Property. Lender shall be reimbursed for any expenses reasonably incurred in connection therewith (including reasonable attorneys’ fees and
disbursements, and, if reasonably necessary to collect such proceeds, the expense of an Appraisal on behalf of Lender) out of such Loss Proceeds or, if insufficient for such purpose, by Borrower. 

(f) If Borrower is not entitled to apply Loss Proceeds toward the restoration of a Property pursuant to Section 5.16(d) and Lender
elects, subject in all cases to Section 5.16(h), not to permit such Loss Proceeds to be so applied, such Loss Proceeds shall be applied on the first Payment Date following such election to the prepayment of the Principal Indebtedness and
shall be accompanied by interest through the end of the applicable Interest Accrual Period (calculated as if the amount prepaid were outstanding for the entire Interest Accrual Period). 

(g) Notwithstanding the foregoing provisions of this Section, if the Loan is included in a REMIC and immediately following a release of any
portion of the applicable Property from the Lien of the Loan Documents in connection with a Casualty or Condemnation the Loan would fail to satisfy a Lender 80% Determination (taking into account the planned restoration of such Property), then
Borrower shall prepay the Principal Indebtedness in accordance with Section 5.16(f) in an amount equal to either (i) so much of the Loss Proceeds as are necessary to cause the Lender 80% Determination to be satisfied, or if the
aggregate Loss 

  
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Proceeds are insufficient for such purpose, then 100% of such Loss Proceeds, or (ii) a lesser amount, provided that Borrower delivers to Lender an opinion of counsel, in form and substance
reasonably satisfactory to Lender and delivered by counsel reasonably satisfactory to Lender, opining that such release of Property from the Lien does not cause any portion of the Loan to cease to be a “qualified mortgage” within the
meaning of section 860G(a)(3) of the Code. 
 (h) Notwithstanding anything in this Section 5.16 to the contrary, in the event of any
conflict or inconsistency between the terms of this Section 5.16 and the terms of any Lease, Ground Lease or Property Agreement, the terms of such agreement shall govern unless otherwise agreed in writing between Lender and the
applicable counterparty(ies) to such agreement. 
 Section 5.17 Annual Budget. At least 30 days prior to the commencement of
each Fiscal Year during the term of the Loan, Borrower shall deliver to Lender an Annual Budget for the Properties for the ensuing Fiscal Year for informational purposes only so long as no Cash Flow Sweep Period or Event of Default is continuing.
During the continuance of any Cash Flow Sweep Period or Event of Default, each Annual Budget will require the prior written consent of Lender, not to be unreasonably withheld so long as no Event of Default is then continuing. Within 30 days after
the commencement of any Cash Flow Sweep Period or Event of Default, to the extent the Annual Budget then in effect was not otherwise approved by Lender, Borrower shall deliver to Lender an update to the Capital Expenditure portion of the then
existing Annual Budget for the remainder of the applicable Fiscal Year, which update will require the prior written consent of Lender, not to be unreasonably withheld so long as no Event of Default is then continuing. Promptly following preparation
thereof, Borrower shall deliver to Lender subsequent revisions to any Approved Annual Budget, which shall be for informational purposes except that (i) if no Event of Default or Cash Flow Sweep Period is then continuing, Lender’s prior
written consent shall be required with respect to any such revisions that result in variances (other than Permitted Variances) from the Approved Annual Budget most recently delivered to Lender that, individually or in the aggregate, exceed 10% of
the total amount of such budget or (ii) if an Event of Default or Cash Flow Sweep Period is then continuing, Lender’s prior written consent shall be required in connection with any such revisions that result in variances (other than
Permitted Variances). Borrower shall not amend any Approved Annual Budget more than once in any 60-day period. To the extent Lender’s approval is required with respect to any Annual Budget (or amendment
thereto) in accordance with this Section 5.17, for so long as Lender shall have not yet approved such Annual Budget (or amendment thereto), the Approved Annual Budget in effect prior to any such request for approval shall remain in
effect. 
 Section 5.18 Venture Capital Operating Companies; Nonbinding Consultation. Solely to the extent that Lender or any
direct or indirect holder of an interest in the Loan must qualify as a “venture capital operating company” (as defined in Department of Labor Regulation 29 C.F.R. § 2510.3-101), Lender shall
have the right to consult with and advise Borrower regarding significant business activities and business and financial developments of Borrower, provided that any such advice or consultation or the result thereof shall be completely nonbinding on
Borrower. 

  
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 Section 5.19 Compliance with Encumbrances and Material Agreements. 

(i) Borrower shall comply with all terms, conditions and covenants of each Material Agreement and each material Permitted
Encumbrance, including any reciprocal easement agreement, ground lease, declaration of covenants, conditions and restrictions, and any condominium arrangements, in each case where the failure to do so would reasonably be expected to have a Material
Adverse Effect or a Property Material Adverse Effect. 
 (ii) Borrower and JV Pledgor, as applicable, shall promptly deliver
to Lender a true and complete copy of each and every notice of default received by Borrower or JV Pledgor, as applicable, with respect to any obligation of Borrower or JV Pledgor, as applicable, under the provisions of any Material Agreement, JV
Document and/or Permitted Encumbrance. 
 (iii) Borrower shall deliver to Lender copies of any written notices of default or
event of default relating to any Material Agreement, JV Document and/or Permitted Encumbrance served by Borrower. 
 (iv)
Without the prior written consent of Lender, not to be unreasonably withheld, conditioned or delayed, Borrower shall not grant or withhold any material consent, approval or waiver under any Material Agreement or Permitted Encumbrance unless no Event
of Default is continuing and the same would not be reasonably likely to have a Material Adverse Effect or a Property Material Adverse Effect. 

(v) Borrower shall deliver to each other party to any Permitted Encumbrance and any Material Agreement notice of the identity
of Lender and each assignee of Lender of which Borrower is aware if such notice is required in order to protect Lender’s interest thereunder. JV Pledgor shall deliver to each other party to the JV Documents, as applicable, notice of the
identity of Lender and each assignee of Lender of which JV Pledgor is aware if such notice is required in order to protect Lender’s interest thereunder. 

(vi) Borrower shall enforce, short of termination thereof and without being required to commence or maintain any litigation,
the performance and observance of each and every material term, covenant and provision of each Material Agreement and Permitted Encumbrance to be performed or observed, if any, in each case where the failure to do so would reasonably be expected to
have a Material Adverse Effect or a Property Material Adverse Effect. 
 Section 5.20 Prohibited Persons. No Required SPE nor
any of its direct or indirect equityholders (excluding (i) any holders of Equity Interests that are traded on a nationally recognized public stock exchange and (ii) any indirect holders of Equity Interests in Seritage OP) shall
(i) knowingly conduct any business, or engage in any transaction or dealing, with any Embargoed Person, including the making or receiving of any contribution of funds, goods, or services, to or for the benefit of a Embargoed Person, or
(ii) knowingly engage in or conspire to engage in any transaction that evades or avoids, or has the purpose of evading or avoiding, or attempts to violate, any Federal Trade Embargo. Borrower and JV Pledgor, as applicable, shall cause the
representation set forth in Section 4.39 to remain true and correct at all times. 

  
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 Section 5.21 Business Plans. Borrower shall deliver business plans to Lender in a
form satisfying the requirements set forth on Schedule H hereto on the following schedule: 
 (i) on or before
January 7, 2016, business plans for each individual Property (the “Property Business Plans”) as well as the plans of Seritage REIT with respect to senior management and development of infrastructure (including a timeline with
major milestones) necessary to operate Seritage REIT without reliance on the SHLD TSA (the “Corporate Business Plan” and collectively with the Property Business Plans, the “Business Plans”); 

(ii) annually thereafter, within 30 days prior to the commencement of each calendar year, updates to the Business Plans; and

 (iii) from time to time, updates to any Business Plan promptly following any material change to such plan. 

Section 5.22 Redevelopment Plans. 

(a) In connection with the redevelopment, re-tenanting or
re-positioning of any Property (a “Redevelopment Project”), Borrower shall deliver to Lender a redevelopment plan and budget (a “Redevelopment Plan and Budget”), including
details with respect to Redevelopment Costs of such Redevelopment Project, expected timeline with respect to such Redevelopment Project and Borrower’s source of funds (including any expected draws from the Future Advance Amount) and, promptly
after preparation thereof, any subsequent revisions to any Redevelopment Plan and Budget, which delivery shall be for informational purposes so long as no Event of Default is continuing or the applicable Redevelopment Plan and Budget is not
otherwise subject to approval by Lender in accordance with this Section 5.22. Each Redevelopment Plan and Budget with respect to a Redevelopment Project shall be subject to review and approval by Lender, in its reasonable discretion if
either (i) the aggregate amount of the budget for such Redevelopment Project exceeds $7,500,000 (or, during a Cash Flow Sweep Period, $5,000,000) or (ii) as to any calendar year, such Redevelopment Project would cause the aggregate
budgeted amount of Redevelopment Projects for such year to exceed $25,000,000 and the aggregate amount of the budget for such Redevelopment Project exceeds $5,000,000 (each of (i) and (ii), a “Major Redevelopment Project”). In
addition, during the continuance of any Event of Default or a Cash Flow Sweep Period each Redevelopment Plan and Budget with respect to a Redevelopment Project not then commenced will require the prior written consent of Lender. Submission and/or
approval of a Redevelopment Plan and Budget by Borrower shall not obligate Borrower to commence the applicable Redevelopment Project. Promptly following preparation thereof, Borrower shall deliver to Lender subsequent revisions to any Approved
Redevelopment Plan and Budget, which shall be subject to Lender’s prior written consent (y) if no Event of Default or Cash Flow Sweep Period is then continuing, with respect to any such revisions that result in variances (other than
Permitted Variances) from the Approved Redevelopment Plan and Budget most recently delivered to Lender that, individually or in the aggregate, exceed 10% of the total amount of such budget or (z) if an Event of Default or Cash Flow Sweep Period
is then continuing, Lender’s prior written consent shall be required in connection with any such revisions that result in variances (other than Permitted Variances). Each Redevelopment Plan and Budget may include payment of a construction
management fee payable to the Approved 

  
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Property Manager equal to up to six percent (6%) of the hard and soft costs of the Redevelopment Project actually incurred by Borrower (payable as and when the cost of the work on which such
fee is based is due and payable) or, if applicable, up to two percent (2%) of the hard and soft costs incurred by tenants in connection with the redevelopment of the Properties. 

(b) Not less than 30 days prior to the commencement of any redevelopment that involves more than 15,000 square feet of ground-up or
substantially equivalent new build construction, and not less than 15 days prior to the commencement of any other Redevelopment Project, Borrower shall have delivered the following (as applicable), it being agreed that Future Advance Lender shall
not be obligated to make any advances of the Future Advance Amount nor shall Lender be obligated to release funds from the Redevelopment Project Reserve Account until all of the conditions below (as applicable) shall have been satisfied: 

(i) [Reserved]. 

(ii) Borrower shall have demonstrated to Lender’s reasonable satisfaction that Borrower has access to funds in an amount
not less than the Approved Redevelopment Costs (or, in the case of any Redevelopment Project to be funded in whole or in part with the proceeds of Future Advances, 105% of the Approved Redevelopment Costs) set forth in the applicable Approved
Redevelopment Plan and Budget, whether from debt and/or equity. 
 (iii) Lender shall have received copies of the plans and
specifications for the Redevelopment Project. 
 (iv) Borrower shall have delivered to Lender an Officer’s Certificate
certifying that Borrower has made all necessary filings and obtained all necessary approvals to commence the Redevelopment Project, including all applicable building permits, and containing copies of material approvals and Permits. 

(v) Lender shall have received a copy of the construction contract for such Redevelopment Project. 

(vi) Borrower shall have delivered to Lender and, if applicable, its construction consultant a copy of any architect contract
and any other material service provider agreements entered into by Borrower or any Affiliate thereof in connection with such Redevelopment Project. 

(vii) (a) Borrower shall have delivered to Lender an Officer’s Certificate certifying its compliance in all material
respects with all requirements of, and that it has obtained all approvals, if any, required under, any Ground Leases, Leases (including the SHLD Master Lease) and/or Material Agreements applicable to the Redevelopment Project, and that the
Redevelopment Project does not violate any of the provisions of any of the foregoing (except to the extent such provisions have been waived or otherwise amended, in accordance with terms of this Agreement, in such a manner that Borrower is no longer
in violation thereof) and, and (b) with respect to each Major Redevelopment Project, Lender shall have approved, in its reasonable discretion, all material modifications to existing zoning, entitlements and other
in-place approvals relating to the use and operations of the Property and all parking and ingress/egress specifications (“Major Redevelopment Land Use Matters”). 

  
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 (c) Each request for a draw of the Future Advance Amount or a release of funds from the
Redevelopment Project Reserve Account shall be subject to satisfaction of the following conditions: 
 (i) Borrower shall
deliver to Lender invoices evidencing that the costs for which such advance is requested are due and payable, and Borrower shall deliver to Lender an Officer’s Certificate confirming that (i) all such costs to be funded by the requested
advance or release have been previously paid by Borrower or will be paid from the proceeds of the requested advance or release, (ii) all conditions precedent to such advance required by the Loan Documents have been satisfied and
(iii) Borrower has applied all prior amounts advanced or released to it in accordance with this Section 5.22(c) in respect of the applicable Redevelopment Project to the costs set forth in its prior Funding Requests. 

(ii) no mechanics or materialmen’s lien or encumbrance shall have been filed and remain in effect against the applicable
Property (unless bonded or insured over by the title insurance company issuing the related Title Insurance Policy for such Property as required under applicable law or otherwise in a manner reasonably satisfactory to Lender); 

(iii) if Lender shall have determined based on the most recent Officer’s Certificate delivered to Lender in accordance
with Section 5.22(d) that Borrower’s available funds to cover Approved Redevelopment Costs that are required to be funded by Borrower in accordance with the related Approved Redevelopment Plan and Budget are less than 75% of such
required Borrower funds, Borrower shall deposit in the Redevelopment Project Reserve Account the amount of such shortfall; 

(iv) if Lender shall have determined that based on the most recent Redevelopment Reconciliation Report that the actual Approved
Redevelopment Costs incurred by Borrower exceed the amounts provided in the Approved Redevelopment Plan and Budget, Borrower shall have deposited an amount equal to such shortfall in the Redevelopment Project Reserve Account or Borrower shall, with
Lender’s consent (in its sole discretion), have designated such amount against the undrawn balance of the Future Advance Amount in accordance with Section 3.11(a); 

(v) to the extent the Approved Redevelopment Pro Rata Share with respect to a Redevelopment Project is less than 100%, Borrower
shall have delivered to Lender evidence reasonably satisfactory to Lender that an amount equal to the Borrower’s pro rata share (if any) of the amount of the costs which are subject to the related Funding Request has been funded through Excess
Cash Flow or through cash equity contributions to Borrower (it being agreed that Lender shall not be obligated to fund more than the applicable Approved Redevelopment Pro Rata Share of the amount of the costs which are the subject of the related
Funding Request); 

  
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 (vi) in connection with any funding of the Future Advance Amount, the
representations in this Agreement and in the other Loan Documents shall be true and correct in all material respects on the applicable Funding Date with the same effect as if made on such date, except to the extent such representations and
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 except with respect to matters that have theretofore been disclosed in
writing to Lender in the form of an updated Exception Report (provided, that, in no event shall such update reflect facts the existence of which would constitute an Event of Default hereunder or would result in a Material Adverse Effect or a
Property Material Adverse Effect), as evidenced by an Officer’s Certificate; and 
 (vii) Borrower shall be in
compliance with Section 5.22(g). 
 (d) With respect to each Major Redevelopment Project that has been commenced until final
completion thereof, Borrower shall deliver to Lender, on a monthly basis, a reconciliation report of the actual Redevelopment Costs incurred and/or paid in the prior calendar month against such costs included in the Approved Redevelopment Plan and
Budget (each such report, an “Redevelopment Reconciliation Report”), which report shall be accompanied by an Officer’s Certificate certifying that such report is true, complete and correct in all material respects. In addition,
with respect to all Redevelopment Projects, Borrower shall deliver to Lender, on a monthly basis, an Officer’s Certificate certifying the availability of adequate funds to complete such Redevelopment Projects or, as the case may be, the
Borrower’s plan to obtain such funds. 
 (e) Once commenced by Borrower, Borrower shall use commercially reasonable efforts to promptly
and diligently perform to completion in a workmanlike fashion and in accordance with applicable Legal Requirements all work in connection with any Redevelopment Project substantially within the timelines set forth in the Approved Redevelopment Plan
and Budget (subject to Force Majeure). For any Major Redevelopment Project, Lender may retain a construction consultant to review the Redevelopment Plan and Budget, to review any submissions made to Lender pursuant to Section 5.22(b)
and/or Section 5.22(c) and to perform site inspections. Borrower shall, within ten (10) Business Days’ demand by Lender, reimburse Lender for the reasonable fees and expenses of such consultant for the applicable Major
Redevelopment Project. 
 (f) Promptly upon completion of all work contemplated under an Approved Redevelopment Plan and Budget, Borrower
shall deliver to Lender a certificate of substantial completion issued by an architect reasonably satisfactory to Lender with respect to the applicable Redevelopment Project. Borrower shall promptly deliver evidence to Lender of the issuance of a
temporary certificate of occupancy or the equivalent thereof, if required by law, and an Officer’s Certificate certifying compliance in all material respects of the applicable Redevelopment Project with all Legal Requirements. In addition, to
the extent contemplated under the applicable Redevelopment Plan and Budget, a reciprocal easement agreement in form and substance reasonably satisfactory to Lender, including cost-sharing arrangements, shall
have been recorded in the applicable real property records. 

  
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 (g) Within 10 days following the earlier to occur of (i) the disbursement by the Future
Advance Lender of $5,000,000 of the Future Advance Amount since the “last date of coverage” provided in the applicable Title Insurance Policy (the “Redevelopment Date of Coverage”) and (ii) the end of any Fiscal
Quarter during which the Future Advance Lender has funded any portion of the Future Advance Amount, Borrower shall furnish to Lender (A) reasonable evidence establishing that Borrower has applied all amounts received by it in accordance with
Section 5.22(c) since the prior Redevelopment Date of Coverage to the costs set forth in the applicable Funding Requests, (B) partial or complete releases or waivers of mechanics’ and materialmen’s liens from all
Persons furnishing work or materials with respect to Approved Redevelopment Costs funded since the prior Redevelopment Date of Coverage (to the extent Borrower is able to obtain such releases and waivers with the use of commercially reasonable
efforts) and (C) a Required Title Update as to the Title Insurance Policy for each Property subject to a Redevelopment Project which was funded since the prior Redevelopment Date of Coverage, which update shall show that there have been no
mechanics’ or materialmen’s liens filed by any Persons performing work, other than liens that have been bonded over or insured over in compliance with this Agreement ((A), (B) and (C), collectively, the “Redevelopment
Bring-Down Package”). To the extent applicable pursuant to Section 5.22(j), the Redevelopment Bring-Down Package shall include the documents referenced in Section 5.22(j). As used in this Agreement, the term
“Required Title Update” shall mean, as to any Title Insurance Policy, (1) as to a Property in any jurisdiction in which an ALTA form 33-06 endorsement, or its equivalent, is available, (A) an ALTA form 33-06 (or
equivalent) endorsement to such Title Insurance Policy, which endorsement shall reflect the aggregate amount disbursed by Lender as recognized by the applicable title insurer and shall not take exception for any mechanics’ or materialmen’s
liens on the applicable Property, and shall amend the “Date of Coverage” of the applicable Title Insurance Policy to the date of the most recent search prior to such disbursement and (B) an informational title report from the
applicable title insurer which issued such Title Insurance Policy, which report shall not disclose any mechanics’ or materialmen’s liens and, except for other Permitted Encumbrances, not disclosing any other Liens on the applicable
Property, (2) as to any Property not covered by clause (1) above or clause (3) below, (A) an endorsement to such Title Insurance Policy recognizing such disbursement and insuring against any mechanics’ or
materialmen’s liens and (B) an informational title report from the applicable title insurer which issued such Title Insurance Policy, which report shall not disclose any mechanics’ or materialmen’s liens and, except for other
Permitted Encumbrances, not disclosing any other Liens on the applicable Property; (3) that with respect to any Property in Delaware, Borrower shall provide an informational title report from the applicable title insurer which issued the
applicable Title Insurance Policy, which report shall not disclose any mechanics’ or materialmen’s liens or, except for other Permitted Encumbrances, any other Liens on the applicable Property); and (4) with respect to each applicable
Property where the Title Insurance Pool Amount is less than the aggregate Allocated Loan Amounts of the Properties in such Title Insurance Pool (after giving effect to all Future Advances made with respect to Properties in such Title Insurance
Pool), an increase in the amount of title insurance on such Property sufficient to cause the applicable Title Insurance Pool Amount to equal or exceed the aggregate Allocated Loan Amounts of the Properties in such Title Insurance Pool (after giving
effect to all Future Advances made with respect to the Properties in such Title Insurance Pool). 
 (h) As of the Closing Date, the Lender
has approved the redevelopment plans attached hereto as Schedule M for each Designated Property (the “Approved Designated  

  
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Property Redevelopment Plans”). Any Redevelopment Project with respect to a Designated Property that is funded in its entirety from sources other than proceeds of Future Advances and
other than amounts on deposit in the Redevelopment Project Reserve Account (a “Designated Redevelopment Project”) shall be deemed for all purposes of this Agreement to be a Major Redevelopment Project except as provided in this
Section 5.22(h). Provided that the Designated Redevelopment Project proposed in a Redevelopment Plan and Budget submitted by Borrower to Lender (and any subsequent revisions thereof) in accordance with Section 5.22(a) is
substantially consistent with the proposed uses and overall density described in the applicable Approved Designated Property Redevelopment Plan (i) the Redevelopment Plan and Budget with respect to such Designated Redevelopment Project (and
subsequent revisions thereof) will be subject to review by Lender in accordance with Section 5.22(a), but will not be subject to approval by Lender and (ii) Lender’s approval will not be required in connection with any Major
Redevelopment Land Use Matters related to such Designated Redevelopment Project. 
 (i) Borrower shall use commercially reasonable efforts
to cause each construction agreement, architect contract or other material agreement to include a consent to assignment to Lender (including an agreement to attorn to Lender during the continuance of an Event of Default) from the applicable service
provider. In addition, Borrower shall include commercially reasonable retainage provisions in each such contract. 
 (j) If the applicable
Property in respect of which Future Advances have been disbursed is located in a jurisdiction that imposes a mortgage recording, intangibles or similar tax (any such tax, “MRT”) and the advance of such portion of the Future Advance
Amount would require payment of additional MRT and/or an amendment to the applicable Mortgage for the purpose of securing such portion of the Future Advance Amount (any such amendment, an “MRT Amendment”), then, the Redevelopment
Bring-Down Package delivered pursuant to Section 5.22(g) shall, to the extent applicable, include the following, which shall be furnished by Borrower at Borrower’s sole cost and expense: (a) evidence reasonably
satisfactory to Lender of the payment of such additional MRT; (b) an MRT Amendment executed and delivered by the applicable Borrower, which MRT Amendment shall solely increase the amount secured by the applicable Mortgage, by no less than the
applicable Future Advances and which shall otherwise be in form and substance reasonably satisfactory to Lender and acceptable for recording in the applicable jurisdiction, and (c) in connection with any MRT Amendment, an ALTA 11 or ALTA 11.2
Mortgage Modification Endorsement or jurisdictional equivalent to the applicable Title Insurance Policy that insures the MRT Amendment and, with respect to any Property where the Title Insurance Pool Amount is less than the aggregate Allocated Loan
Amounts of the Properties in such Title Insurance Pool (after giving effect to all Future Advances made with respect to Properties in such Title Insurance Pool), an increase in the amount of title insurance on such Property sufficient to cause the
applicable Title Insurance Pool Amount to equal or exceed the aggregate Allocated Loan Amounts of the Properties in such Title Insurance Pool (after giving effect to all Future Advances made with respect to the Properties in such Title Insurance
Pool) (an “Acceptable Mortgage Modification Endorsement”); provided, however, that for any Property in the State of New York, (i) instead of an MRT Amendment to the existing Mortgage, the Redevelopment Bring-Down
Package shall include an additional mortgage executed by the applicable Borrower, in substantially the form of the existing applicable Mortgage, in the amount of at least such portion of the Future Advance Amount and otherwise in form and substance
reasonably satisfactory to Lender and which additional mortgage shall state that such additional 

  
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mortgage is pari passu with the existing applicable Mortgage(s), which additional mortgage shall secure such portion of the Future Advance Amount, and (ii) if Borrower executes and delivers
such additional mortgage, instead of an Acceptable Mortgage Modification Endorsement, the Redevelopment Bring-Down Package shall include a new Title Insurance Policy in form and substance reasonably satisfactory to Lender with respect to such
additional mortgage in the amount equal to at least such portion of the Future Advance Amount. Lender acknowledges that the form of MRT Amendment attached hereto as Exhibit F is satisfactory to Lender, and Lender shall not unreasonably
withhold or delay approval of forms proposed by Borrower of MRT Amendments or, for New York State Properties, forms of additional mortgages. Each of Borrower and Lender acknowledges that, as of the Closing Date, this Section 5.22(j)
applies to the jurisdictions listed on Schedule S attached hereto. 
 Section 5.23 Recapture Plans. Lender agrees that
the Recapture Plans attached to the SHLD Master Lease and attached hereto as Schedule N have been approved by Lender. Borrower shall promptly provide to Lender copies of any subsequent amendments, replacements or additions to any Recapture
Plan (including all Recapture Plans with respect to Properties as to which no Recapture Plan is attached to the SHLD Master Lease), together with a narrative description highlighting changes from the prior Recapture Plan delivered to Lender;
provided that Borrower shall not, without the prior written consent of Lender (not to be unreasonably withheld), modify, amend, supplement or replace any Recapture Plan (i) with respect to a Redevelopment Project that is not a
Major Redevelopment Project if the effect of such modification, amendment or supplement would be to: (1) leave the portion of the applicable Property to be recaptured by Borrower without adequate ingress or egress; (2) deprive the portion
of the applicable Property to be recaptured by Borrower of vertical transport, unless provision for such shall be made in the applicable Redevelopment Plan and Budget; (3) alter the allocations of horizontal and vertical space between SHLD
Master Tenant and Borrower by more than 10.0%; (4) cause the Tenant under the Land’s End Lease to terminate the Land’s End Lease with respect to such Property; (ii) with respect to any Major Redevelopment Project; or
(iii) which is funded from disbursements from the Unfunded Obligations Account. 
 Section 5.24 Joint Ventures. 

(a) JV Pledgor shall cause any JV Profits distributed in respect of its JV Interests to be remitted directly to either (i) the TI/LC
Reserve Account or (ii) at the sole election of Borrower from time to time on or prior to the date of each such remittance of such JV Profits, the Redevelopment Project Reserve Account. 

(b) JV Pledgor shall deliver, or cause to be delivered, all quarterly and annual financial reports received by JV Pledgor pursuant to the
applicable JV Documents and such other information in respect of JV Pledgor and its assets and each Applicable JV as Lender may reasonably request. 

(c) JV Pledgor shall not permit any JV Documents or any Debt incurred by any Applicable JV or any subsidiary of any Applicable JV to prohibit,
restrict or otherwise impair (i) the ability of JV Pledgor to grant a first priority security interest in the applicable JV Collateral to Lender pursuant to the JV Pledge and Security Agreement or (ii) other than the satisfaction of one or
more conditions that are substantially the same as those contained in the JV 

  
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Documents as of the Closing Date, the ability of Lender to exercise its rights and remedies under the JV Pledge and Security Agreement, including, without limitation, the foreclosure sale, or
assignment-in-lieu of foreclosure, of the JV Interests and the other JV Collateral to Lender or any other Person; provided, however, that customary restrictions in any such Debt (including, without limitation, restriction based on Embargoed Person;
“Know your customer”, absence of adverse ligation or foreclosures, absence of bankruptcy or similar filings, and other customary restrictions as to a Person holding 50% of the direct or indirect Equity Interests in the Applicable JV) shall
not be affected by the restriction in this Section 5.24. 
 ARTICLE 6 

NEGATIVE COVENANTS 

Section 6.1 Liens on the Collateral. No Required SPE shall permit or suffer the existence of any Lien on any of its assets, other
than Permitted Encumbrances. 
 Section 6.2 Ownership. Borrower shall not own any assets other than the Properties and
incidental personal property necessary for the ownership and operation of the Properties. JV Pledgor shall not own any assets other than the applicable JV Interest and incidental personal property necessary for the ownership and operation of the
applicable JV Interest. 
 Section 6.3 Transfer. Borrower shall not convey a fee interest or ground leasehold interest in any of
the Properties other than a Permitted Transfer, and Borrower shall not hereafter file a declaration of condominium with respect to any Property without Lender’s consent in its sole discretion. To the extent any Permitted Encumbrances are
reasonably approved by Lender, Lender agrees that, when reasonably required in connection with such Permitted Encumbrances, Lender shall, at Borrower’s request and at Borrower’s sole cost and expense subordinate the Liens of the Loan
Documents to such Permitted Encumbrances. JV Pledgor shall not make any direct or indirect transfer of the JV Interests except for any Transfer in compliance with Section 2.4(d). 

Section 6.4 Debt. Neither Borrower nor JV Pledgor shall have any Debt, other than Permitted Debt. 

Section 6.5 Dissolution; Merger or Consolidation. No Required SPE shall dissolve, terminate, liquidate, merge with or consolidate
into another Person. 
 Section 6.6 Change in Business. Neither Borrower nor JV Pledgor shall make any material change in the
scope or nature of its business objectives, purposes or operations or undertake or participate in activities other than (i) in the case of Borrower, the continuance of owning, holding, developing, selling, transferring, leasing, managing and
operating the Properties and (ii) in the case of a JV Pledgor, owning, holding, selling, transferring and managing the applicable JV Interests. 

Section 6.7 Debt Cancellation. Borrower shall not cancel or otherwise forgive or release any material claim or Debt owed to it by
any Person, except for adequate consideration or in the ordinary course of its business without Lender’s consent, which shall not be unreasonably withheld. 

  
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 Section 6.8 Affiliate Transactions. Neither Borrower nor JV Pledgor shall enter into,
or be a party to, any transaction with any Affiliate of Borrower, except as expressly permitted under this Agreement or otherwise on arm’s-length terms and approved by Lender in its reasonable discretion.

 Section 6.9 Misapplication of Funds. Borrower shall not (a) distribute any Revenue or Loss Proceeds in violation of the
provisions of this Agreement (and shall promptly cause the reversal of any such distributions made in error of which Borrower becomes aware), (b) fail to remit amounts to the Clearing Account as required by Section 3.1,
(c) make any distributions to equityholders during the continuance of a Cash Flow Sweep Period or Event of Default unless expressly permitted hereunder, or (d) misappropriate any security deposit or portion thereof. JV Pledgor shall not
fail to remit JV Profits (as determined by JV Pledgor in good faith), to the TI/LC Reserve Account or the Redevelopment Project Reserve Accounting, as applicable, as required by Section 5.24(a). 

Section 6.10 Jurisdiction of Formation; Name. Neither Borrower nor JV Pledgor shall change its jurisdiction of formation, its
jurisdiction of fiscal residence or name without receiving Lender’s prior written consent and promptly providing Lender such information and replacement Uniform Commercial Code financing statements and legal opinions as Lender may reasonably
request in connection therewith. 
 Section 6.11 Modifications and Waivers. Unless otherwise consented to in writing by Lender
in Lender’s reasonable discretion (provided that if any of the following matters would be reasonably likely to have a Material Adverse Effect or a Property Material Adverse Effect, Lender’s consent in its sole discretion shall be
required): 
 (i) Borrower shall not terminate, renew, surrender, or materially modify, amend or waive any rights or remedies
under, any Lease (including, without limitation, the SHLD Master Lease, it being expressly understood that any change or update to any schedule to the SHLD Master Lease shall constitute a modification to the Master Lease), or enter into any Lease,
in each case except in compliance with Section 5.7; 
 (ii) No Required SPE shall terminate, amend or modify its
organizational documents (including any operating agreement, limited partnership agreement, by-laws, certificate of formation, certificate of limited partnership or certificate of incorporation); 

(iii) Borrower shall not terminate or surrender, or materially amend, modify or waive any rights or remedies under, any
Approved Management Agreement; 
 (iv) Borrower shall not (x) enter into any Material Agreement, or amend, modify,
surrender or waive any material rights or remedies under any Material Agreement, (y) terminate any Material Agreement (z) where such default would reasonably be expected to cause a Material Adverse Effect or a Property Material Adverse
Effect, default in its obligations under the SHLD Master Lease or any Material Agreement; or 

  
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 (v) JV Pledgor shall not amend or modify, and JV Pledgor shall not terminate, the
GGP JV Agreement, the Simon JV Agreement, the Macerich JV Agreement or the Permitted JV Agreement. 
 Section 6.12 ERISA. 

(a) Neither Borrower nor JV Pledgor shall maintain or contribute to, or agree to maintain or contribute to, or permit any
ERISA Affiliate to maintain or contribute to or agree to maintain or contribute to, any employee benefit plan (as defined in Section 3(3) of ERISA) subject to Title IV or Section 302 of ERISA or Section 412 of the Code. 

(b) Neither Borrower nor JV Pledgor shall engage in a non-exempt prohibited transaction under
Section 406 of ERISA, Section 4975 of the Code, or substantially similar provisions under federal, state or local laws, rules or regulations or in any transaction that would cause any obligation or action taken or to be taken hereunder (or
the exercise by Lender of any of its rights under the Notes, this Agreement, the Mortgage or any other Loan Document) to be a non-exempt prohibited transaction under such provisions. 

Section 6.13 Alterations and Expansions. During the continuance of any Cash Flow Sweep Period or Event of Default, Borrower shall
not incur or contract to incur any capital improvements requiring Capital Expenditures that are not consistent with the Approved Annual Budget or an Approved Redevelopment Plan and Budget. Borrower shall not perform, undertake, contract to perform
or consent to any Material Alteration without the prior written consent of Lender, which consent (in the absence of a continuing Event of Default) shall not be unreasonably withheld, delayed or conditioned, but may be conditioned on the deposit by
Borrower into the Capital Expenditure Reserve Account of an amount equal to the remaining budgeted Capital Expenditures in respect of any such Material Alteration in excess of $7,500,000 from time to time. If Lender’s consent is requested
hereunder with respect to a Material Alteration, Lender may retain a construction consultant to review such request and, if such request is granted, Lender may retain a construction consultant to inspect the work from time to time. Borrower shall,
on demand by Lender, reimburse Lender for the reasonable fees and disbursements of such consultant. 
 Section 6.14 Advances and
Investments. Borrower shall not lend money or make advances to any Person, or purchase or acquire any stock, obligations or securities of, or any other interest in, or make any capital contribution to, any Person, except for Permitted
Investments. 
 Section 6.15 Single-Purpose Entity. No Required SPE shall cease to be a
Single-Purpose Entity; provided, however, that from and after a JV Pledgor Release Event as to any Seritage JV Member, such Seritage JV Member shall cease to be a Required SPE. No Required SPE shall
remove or replace any Independent Manager without Cause and without providing at least five Business Days’ advance written notice thereof to Lender and the Rating Agencies. 

  
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 Section 6.16 Zoning and Uses. Borrower shall not do any of the following without the
prior written consent of Lender, in the case of clause (iii) below not to be unreasonably withheld, conditioned or delayed: 

(i) initiate or consent to any limiting change in the permitted uses of any of the Properties (or to the extent applicable,
zoning reclassification of any of the Properties) or any portion thereof, seek any variance under existing land use restrictions, laws, rules or regulations (or, to the extent applicable, zoning ordinances) applicable to any of the Properties, or
use or permit the use of any of the Properties in a manner that would result in the use of such Property becoming a nonconforming use under applicable land-use restrictions or zoning ordinances or that would
violate the terms of any Lease (including, without limitation, the SHLD Master Lease), Material Agreement, Ground Lease or Legal Requirement (and if under applicable zoning ordinances the use of all or any portion of any of the Properties is a
nonconforming use, Borrower shall not cause or permit such nonconforming use to be discontinued or abandoned); 
 (ii) impose
or consent to the imposition of any restrictive covenants, easements or encumbrances upon any of the Properties in any manner that is reasonably likely to have a Property Material Adverse Effect; 

(iii) execute or file any subdivision plat affecting any of the Properties, or institute, or permit the institution of,
proceedings to alter any tax lot comprising any of the Properties; or 
 (iv) permit or consent to the use of any of the
Properties by the public or any Person in such manner as might make possible a claim of adverse usage or possession or of any implied dedication or easement. 

Section 6.17 Waste. Borrower shall not commit any Waste on any of the Properties, nor knowingly take any actions that could
reasonably be expected to invalidate any insurance carried on any of the Properties (and Borrower shall promptly correct any such actions of which Borrower becomes aware). 

Section 6.18 Ground Lease. 

(i) Borrower shall not, without Lender’s written consent, fail to exercise any option or right to renew or extend the term
of any Ground Lease, and shall give immediate written notice to Lender and shall execute, acknowledge, deliver and record any document requested by Lender to evidence the lien of the related Mortgage on such extended or renewed lease term. If
Borrower shall fail to exercise any such option or right to renew or extend, Lender may exercise the option or right as Borrower’s agent and attorney-in-fact as
provided herein in Lender’s own name or in the name of and on behalf of a nominee of Lender, as Lender may determine in the exercise of its sole and absolute discretion. 

(ii) Borrower shall not waive, excuse, condone or in any way release or discharge any Ground Lessor under any Ground Lease of
or from such Ground Lessor’s obligations, covenant and/or conditions under the related Ground Lease without the prior written consent of Lender. 

  
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 (iii) Borrower shall not, without Lender’s prior written consent, surrender,
terminate, forfeit, or suffer or permit the surrender, termination or forfeiture of, or change, modify or amend any Ground Lease, other than an expiration of the Ground Lease pursuant to its terms. Consent to one amendment, change, agreement or
modification by Lender shall not be deemed to be a waiver of the right to require consent to other, future or successive amendments, changes, agreements or modifications. Any acquisition of Ground Lessor’s interest in any Ground Lease by
Borrower or any Affiliate of Borrower shall be accomplished by Borrower in such a manner so as to avoid a merger of the interests of lessor and lessee in such Ground Lease, unless consent to such merger is granted by Lender. 

ARTICLE 7 
 DEFAULTS

 Section 7.1 Event of Default. The occurrence of any one or more of the following events shall be, and shall constitute
the commencement of, an “Event of Default” hereunder (any Event of Default that has occurred shall continue unless and until waived by Lender in writing in its sole discretion): 

(a) Payment. 

(i) Borrower shall default in the payment when due of any principal or interest owing hereunder or under the Notes (including
any mandatory prepayment required hereunder) provided that no default shall exist under this clause (i) if and to the extent that on the applicable Payment Date the amount in the Cash Management Account is sufficient to make all
of the remittances and deposits required under Section 3.2(c); or 
 (ii) Borrower shall default, and such
default shall continue for at least five Business Days after written notice to Borrower that such amounts are owing, in the payment when due of fees, expenses or other amounts owing hereunder, under the Notes or under any of the other Loan Documents
(other than principal and interest owing hereunder or under the Notes); provided, however, that no default shall exist under this clause (ii) if and to the extent that the amount in the applicable Collateral Account is
sufficient to make such payment and Borrower is entitled to the application of such amounts to such payments pursuant to the Loan Documents. 

(b) Representations. Any representation made by Borrower or Guarantor in any of the Loan Documents, or in any report, certificate,
financial statement or other instrument, agreement or document furnished to Lender shall have been false or misleading in any material respect (or, with respect to any representation that itself contains a materiality qualifier, in any respect) as
of the date such representation was made or deemed made; provided that as to any such breach of any representation or warranty which was unintentionally made to Lender if such representation or warranty can either be made true and correct in
all material respects or may 

  
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otherwise be cured, Borrower shall have a period of 5 Business Days in the event such cure can be effectuated by the payment of money, or otherwise 30 days, after Borrower receives written
notice thereof, to undertake and complete any required action to make such representation or warranty either true and correct in all material respects or otherwise to cure the same. 

(c) Other Agreements. A default by Borrower, Guarantor or any of their respective Subsidiaries shall occur under any Material
Agreement, Ground Lease, or Approved Management Agreement, in each case, beyond the expiration of any applicable cure period, and in each case if such default would reasonably be expected to result in a Material Adverse Effect or a Property Material
Adverse Effect. 
 (d) Bankruptcy, etc. 

(i) Any Required SPE or Guarantor shall commence a voluntary case concerning itself under the Bankruptcy Code; 

(ii) any Required SPE or Guarantor shall commence any other proceeding under any reorganization, arrangement, adjustment of
debt, relief of creditors, dissolution, insolvency or similar law of any jurisdiction whether now or hereafter in effect relating to such Required SPE or Guarantor, or shall dissolve or otherwise cease to exist; 

(iii) there is commenced against any Required SPE or Guarantor an involuntary case under the Bankruptcy Code, or any such other
proceeding, which remains undischarged, unstayed and undismissed for a period of 90 days after commencement; 
 (iv) any
Required SPE or Guarantor is adjudicated insolvent or bankrupt; 
 (v) any Required SPE or Guarantor suffers appointment of
any custodian or the like (other than a custodian or the like appointed by or at the direction of Lender) for it or for any substantial portion of its property and such appointment continues unchanged or unstayed for a period of 90 days after
commencement of such appointment; 
 (vi) any Required SPE or Guarantor makes a general assignment for the benefit of
creditors; or 
 (vii) any Required SPE or Guarantor takes any action with the intent of effecting any of the foregoing. 

(e) Prohibited Change of Control. A Prohibited Change of Control shall occur. 

(f) Equity Pledge; Preferred Equity. (i) Any direct or indirect equity interest in or right to distributions from any Restricted
Party shall be subject to a Lien in favor of any Person, or (ii) Borrower, JV Pledgor, Seritage REIT, Seritage OP or any other holder of a direct or indirect interest in either of Borrower or JV Pledgor that is a Subsidiary of Seritage REIT or
Seritage OP shall issue preferred equity (or debt granting the holder thereof rights substantially 

  
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similar to those generally associated with preferred equity); except that the following shall be permitted: 

(i) any pledge of direct or indirect equity interests in and rights to distributions from Seritage REIT and Seritage OP (other
than equity interests in and rights to distributions from Seritage OP held by Seritage REIT); 
 (ii) the pledge of equity
interests in Borrower securing the Mezzanine Loan or the refinancing thereof; and 
 (iii) the issuance of Permitted
Preferred Equity by Seritage REIT and Seritage OP. 
 Any act, action or state of affairs that would result in an Event of Default pursuant to this
subsection shall be referred to in this Agreement as a “Prohibited Pledge”. 
 (g) Insurance. Borrower shall fail to
maintain in full force and effect all Policies required hereunder; provided, however, that no default shall exist under this clause (g) if and to the extent that (i) sufficient amounts are then reserved in the Basic
Carrying Costs Escrow Account and designated for the payment of insurance premiums, (ii) Borrower is entitled to the application of same to such payment pursuant to the Loan Documents and has requested such payment from Lender and
(iii) Lender fails to release such payment from the Basic Carrying Costs Escrow Account. 
 (h) ERISA; Negative Covenants. A
default shall occur in the due performance or observance by Borrower or JV Pledgor of any term, covenant or agreement contained in Section 5.8 or in Article VI. 

(i) Legal Requirements. Borrower shall fail to cure properly any violations of Legal Requirements affecting all or any portion of any
Property within 30 days after Borrower first receives written notice of any such violations, and such violations result in a Property Material Adverse Effect; provided, however, if any such violation is reasonably susceptible of cure,
but not within such 30 day period, then Borrower shall be permitted up to an additional 30 days to cure such violation provided that Borrower commences a cure within such initial 30 day period and thereafter diligently and continuously pursues such
cure. 
 (j) Business Plans. Borrower shall have failed to deliver the Business Plans in accordance with Section 5.21 to
Lender on or before January 7, 2017. 
 (k) Other Covenants. A default shall occur in the due performance or observance by
Borrower or JV Pledgor of any term, covenant or agreement (other than those referred to in any other subsection of this Section) contained in this Agreement or in any of the other Loan Documents, except that in the case of a default that can be
cured by the payment of money, such default shall not constitute an Event of Default unless and until it shall remain uncured for 10 Business Days after Borrower or JV Pledgor, as the case may be, receives written notice thereof; and in the case of
a default that cannot be cured by the payment of money but is susceptible of being cured within 30 days, such default shall not constitute an Event of Default unless and until it remains uncured for 30 days after Borrower or JV Pledgor, as the case
may be, 

  
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receives written notice thereof, provided that promptly following its receipt of such written notice, Borrower or JV Pledgor, as the case may be, delivers written notice to Lender of its
intention and ability to effect such cure within such 30 day period; and if such non-monetary default is not cured within such 30 day period despite diligent efforts of Borrower or JV Pledgor, as the case may
be, but is susceptible of being cured within 120 days of receipt of Lender’s original notice, then Borrower or JV Pledgor, as the case may be, shall have such additional time as is reasonably necessary to effect such cure, but in no event in
excess of 120 days from receipt of Lender’s original notice; provided that Borrower or JV Pledgor, as the case may be, is diligently pursuing such cure. 

(l) Any Loan Document shall fail to be in full force and effect or to convey the material Liens, rights, powers and privileges purported to be
created thereby and Borrower shall fail to promptly comply with Section 5.9 to remedy such failure. 
 (m) Borrower shall fail
to provide to Lender the financial statements and other information specified in Sections 5.12, 5.13 or 5.14 within the respective time periods specified therein, or Guarantor fails to provide the financial statements and other
information specified in the Guaranty within the respective time period specified therein, and such failure is not cured within ten (10) Business Days of notice thereof by Lender. 

(n) Borrower shall Transfer any Property in violation of Section 6.3. 

(o) Any event shall occur that is expressly identified as an “Event of Default” under any provision contained herein or in any other
Loan Document. 
 Section 7.2 Remedies. 

(a) During the continuance of an Event of Default, Lender may by written notice to Borrower and JV Pledgor, in addition to any other rights or
remedies available pursuant to this Agreement, the Notes, the Mortgage and the other Loan Documents, at law or in equity, declare by written notice to Borrower and JV Pledgor all or any portion of the Indebtedness to be immediately due and payable,
whereupon all or such portion of the Indebtedness shall so become due and payable, and Lender may enforce or avail itself of any or all rights or remedies provided in the Loan Documents against Borrower and the Collateral and the JV Collateral
(including all rights or remedies available at law or in equity); provided, however, that, notwithstanding the foregoing, if an Event of Default specified in Section 7.1(d) shall occur, then (except as specified in
Section 7.2(f)) the Indebtedness shall immediately become due and payable without the giving of any notice or other action by Lender. Any actions taken by Lender shall be cumulative and concurrent and may be pursued independently,
singly, successively, together or otherwise, at such time and in such order as Lender may determine in its sole discretion, to the fullest extent permitted by law, without impairing or otherwise affecting the other rights and remedies of Lender
permitted by law, equity or contract or as set forth in this Agreement or in the other Loan Documents. 
 (b) If Lender forecloses on any
Collateral or any of the JV Collateral, Lender shall apply all net proceeds of such foreclosure to repay the Indebtedness, the Indebtedness shall be reduced to the extent of such net proceeds and the remaining portion of the Indebtedness shall

  
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remain outstanding and secured by the remaining Collateral and the remaining JV Collateral. At the election of Lender, the Notes shall be deemed to have been accelerated only to the extent of the
net proceeds actually received by Lender with respect to the Properties and applied in reduction of the Indebtedness. 
 (c) During the
continuance of any Event of Default (including an Event of Default resulting from a failure to satisfy the insurance requirements specified herein), Lender may, but without any obligation to do so and without notice to or demand on Borrower or JV
Pledgor and without releasing Borrower or JV Pledgor from any obligation hereunder, take any action to cure such Event of Default. Lender may enter upon any or all of the Properties upon reasonable notice to Borrower for such purposes or appear in,
defend, or bring any action or proceeding to protect its interest in the Collateral or the JV Collateral or to foreclose the Mortgage or collect the Indebtedness. The costs and expenses incurred by Lender in exercising rights under this
Section (including reasonable attorneys’ fees), with interest at the Default Rate for the period after notice from Lender that such costs or expenses were incurred to the date of payment to Lender, shall constitute a portion of the
Indebtedness, shall be secured by the Mortgage and other Loan Documents and shall be due and payable to Lender upon demand therefor. 
 (d)
Interest shall accrue on any judgment obtained by Lender in connection with its enforcement of the Loan at a rate of interest equal to the Default Rate. 

(e) Upon the occurrence and during the continuance of an Event of Default, Lender shall have the right from time to time to sever the Notes
and the other Loan Documents into one or more separate notes, mortgages and other security documents (the “Severed Loan Documents”) in such denominations as Lender shall determine in its sole discretion for purposes of evidencing
and enforcing its rights and remedies provided hereunder; provided that the terms of such separate notes, mortgages, and other security documents are identical to the original Notes and Loan Documents and do not increase Borrower’s
liability under the Notes and the other Loan Documents in any manner. Borrower shall execute and deliver to Lender from time to time, promptly after the request of Lender, a severance agreement and such other documents as Lender shall request in
order to effect the severance described in the preceding sentence, all in form and substance reasonably satisfactory to Lender. Borrower hereby absolutely and irrevocably appoints Lender as its true and lawful attorney, coupled with an interest, in
its name and stead to execute the Severed Loan Documents (Borrower ratifying all that its said attorney shall do by virtue thereof); provided, however, that Lender shall not make or execute any such Severed Loan Documents under such power until the
expiration of five days after written notice has been given to Borrower by Lender of Lender’s intent to exercise its rights under the aforesaid power. Borrower shall be obligated to pay any costs or expenses incurred in connection with the
preparation, execution, recording or filing of the Severed Loan Documents. The Severed Loan Documents shall not contain any representations, warranties or covenants not contained in the Loan Documents, and any such representations and warranties
contained in the Severed Loan Documents will be given by Borrower only as of the Closing Date. 
 (f) Notwithstanding the availability of
legal remedies, Lender will be entitled to obtain specific performance, mandatory or prohibitory injunctive relief, or other equitable relief requiring Borrower or JV Pledgor to cure or refrain from repeating any Default. 

  
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 (g) Notwithstanding anything herein to the contrary, if an event specified in
Section 7.1(d) occurs solely in respect of Guarantor and not any Required SPE, then such event shall not constitute an Event of Default or result in an acceleration of the Loan unless, in each case, Lender so determines in its sole
discretion by written notice to Borrower; and unless and until Lender sends such notice, a Cash Flow Sweep Period shall be deemed to have commenced for all purposes hereunder, which Cash Flow Sweep Period shall continue until the Loan is repaid in
full. 
 Section 7.3 Application of Payments after an Event of Default. Notwithstanding anything to the contrary contained
herein, during the continuance of an Event of Default, all amounts received by Lender in respect of the Loan shall be applied at Lender’s sole discretion either toward the components of the Indebtedness (e.g., Lender’s expenses in
enforcing the Loan, interest, principal and other amounts payable hereunder) and the Notes or Note Components in such sequence as Lender shall elect in its sole discretion, or toward the payment of Property expenses. 

ARTICLE 8 
 CONDITIONS
PRECEDENT 
 Section 8.1 Conditions Precedent to Loan Closing. This Agreement shall become effective on the date that all of
the following conditions (except for items to be delivered in connection with the Approved Separation Transaction Closing in accordance with Section 2.4(e)) shall have been satisfied (or waived in accordance with
Section 9.3),: 
 (a) Loan Documents. Lender shall have received a duly executed copy of each Loan Document. Each Loan
Document that is to be recorded in the public records shall be in form suitable for recording. 
 (b) Collateral Accounts. Each of
the Collateral Accounts shall have been established and funded to the extent required under Article III. 
 (c) Opinions.
Lender shall have received, in each case in form and substance satisfactory to Lender, (i) New York and Delaware legal opinions, (ii) a legal opinion with respect to the laws of each state in which the Properties are located, (iii) a
bankruptcy nonconsolidation opinion with respect to each Person owning at least a 49% direct or indirect equity interest in any Required SPE, and any Affiliated property manager, (iv) a Delaware legal opinion regarding matters related to Single
Member LLC’s, (v) a solvency opinion with respect to SHLD, (vi) a satisfactory true sale opinion with respect to the Approved Separation Transaction, (vii) a copy of a satisfactory fairness opinion delivered to SHLD’s board
of directors with respect to the Approved Separation Transaction and (viii) a satisfactory true lease opinion with respect to the SHLD Master Lease. 

(d) Mezzanine Loan. The conditions precedent to the closing of the Mezzanine Loan shall be satisfied and the Mezzanine Loan shall close
simultaneously with the Loan. 

  
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 (e) Organizational Documents. Lender shall have received all documents reasonably
requested by Lender relating to the existence of Borrower and JV Pledgor, the validity of the Loan Documents and other matters relating thereto, in form and substance satisfactory to Lender, including: 

(i) Authorizing Resolutions. To the extent the required authorizations are not contained directly in the organizational
documents of any Required SPE and Guarantor, certified copies of the resolutions authorizing the execution and delivery of the Loan Documents by Guarantor, Borrower and JV Pledgor. 

(ii) Organizational Documents. Certified copies of the organizational documents of Guarantor and each Required SPE
(including any certificate of formation, certificate of limited partnership, certificate of incorporation, operating agreement, limited partnership agreement or by-laws), in each case together with all
amendments thereto. 
 (iii) Certificates of Good Standing or Existence. Certificates of good standing or existence
for Guarantor and each Required SPE issued as of a recent date by its state of organization and, with respect to the Borrower, by the state in which the Properties are located. 

(f) Lease; Material Agreements. Lender shall have received true, correct and complete copies of the SHLD PSA and all “Ancillary
Agreements” (as defined in the SHLD PSA), including without limitation, the SHLD Master Lease and the SHLD Master Lease Guaranty, all Leases, Ground Leases, JV Documents and all Material Agreements. 

(g) Lien Search Reports. Lender shall have received satisfactory reports of Uniform Commercial Code, tax lien, bankruptcy and judgment
searches conducted by a search firm acceptable to Lender with respect to the Properties, Guarantor, each Required SPE any such Required SPE’s immediate predecessor, if any, such searches to be conducted in such locations as Lender shall have
requested. 
 (h) No Default or Event of Default. (i) No Default or Event of Default shall have occurred and be continuing on
such date either before or after the execution and delivery of this Agreement and (ii) no default or event of default shall have occurred and be continuing on such date under any Lease, including without limitation the SHLD Master Lease. 

(i) No Injunction. No Legal Requirement shall exist, and no litigation shall be pending or threatened, which in the good faith judgment
of Lender would enjoin, prohibit or restrain, or impose or result in the imposition of any material adverse condition upon, the making or repayment of the Loan or the consummation of the Transaction. 

(j) Representations. The representations in this Agreement and in the other Loan Documents shall be true and correct in all material
respects on and as of the Closing Date with the same effect as if made on such date. 
 (k) Estoppel Letters. Borrower shall have
received and delivered to Lender estoppel certificates (i) from Tenants under Third Party Leases that generate at least 75% of the 

  
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Net Operating Income from Third Party Leases as of the Closing Date and from the Tenant under the Land’s End Master Lease, (ii) from each counterparty to a Property Agreement listed on
Schedule L-1 hereto and from at least 50% the counterparties to a Property Agreement listed on Schedule L-2 hereto and (iii) from each ground lessor under each Ground Lease, in each case, in
such form and substance as shall be satisfactory to Lender, and each of which shall specify, unless otherwise agreed by Lender, that Lender and its successors and assigns may rely thereon; provided that Borrower may deliver to Lender a Seller
Estoppel with respect to any estoppels required under clause (i) or clause (ii) of this Section 8.1(k) in order to meet the applicable threshold. 

(l) No Material Adverse Effect. No event or series of events shall have occurred since May 27, 2015 that could reasonably be
expected to result in a Material Adverse Effect. 
 (m) Transaction Costs. Borrower shall have paid all transaction costs (or
provided for the direct payment of such transaction costs by Lender from the proceeds of the Loan), to the extent invoiced not fewer than three days prior to the Closing Date. 

(n) Insurance. Lender shall have received certificates of insurance on ACORD Form 25 for liability insurance and ACORD Form 28 for
casualty insurance demonstrating insurance coverage in respect of the Properties of types, in amounts, with insurers and otherwise in compliance with the terms, provisions and conditions set forth in this Agreement. Such certificates shall indicate
that Lender and its successors and assigns are named as additional insured on each liability policy, and that each casualty policy and rental interruption policy contains a loss payee and mortgagee endorsement in favor of Lender, its successors and
assigns. 
 (o) Title. Lender shall have received a marked, signed commitment to issue, or a signed
pro-forma version of, a Title Insurance Policy in respect of each Property, listing only such exceptions as are reasonably satisfactory to Lender. If the Title Policy is to be issued by, or if disbursement of
the proceeds of the Loan are to be made through, an agent of the actual insurer under the Title Policy (as opposed to the insurer itself), the actual insurer shall have issued to Lender for Lender’s benefit a
so-called “Insured Closing Letter.” 
 (p) Zoning. Lender shall have received
evidence reasonably satisfactory to Lender that each Property is in compliance with all applicable zoning requirements (including a zoning report, a zoning endorsement if obtainable and a letter from the applicable municipality if obtainable). 

(q) Permits; Certificate of Occupancy. Lender shall have received a copy of all Permits necessary for the use and operation of each
Property and the certificate(s) of occupancy, if required, for each Property, all of which shall be in form and substance reasonably satisfactory to Lender. 

(r) Engineering Report. Lender shall have received a current Engineering Report with respect to each Property, which report shall be in
form and substance reasonably satisfactory to Lender. 

  
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 (s) Environmental Report. Lender shall have received an Environmental Report (not more
than six months old) with respect to each Property that discloses no material environmental contingencies with respect to any Property. 

(t) Survey. Lender shall have received a Survey with respect to each Property in form and substance reasonably satisfactory to Lender.

 (u) Appraisal. Lender shall have obtained an Appraisal of each Property satisfactory to Lender. 

(v) Consents, Licenses, Approvals, etc. Lender shall have received copies of all consents, licenses and approvals, if any, required in
connection with the execution, delivery and performance by Borrower, and the validity and enforceability, of the Loan Documents, and such consents, licenses and approvals shall be in full force and effect. 

(w) Annual Budget. Lender shall have received the Annual Budget for the current calendar year. 

(x) Know Your Customer Rules. At least 10 days prior to the Closing Date, the Lender shall have received all documentation and other
information required by bank regulatory authorities under applicable “know-your-customer” and anti-money laundering
rules and regulations, including the PATRIOT Act. 
 (y) Approved Separation Transaction. The Approved Separation Transaction shall be
consummated simultaneously with the closing of the Loan on the terms set forth in the SHLD PSA and the Form S-11 of Seritage REIT filed with the Securities and Exchange Commission as of May 27, 2015. 

(z) Underwritten NOI. Pro forma net operating income on the Closing Date shall be at least $162,265,584, consistent with Lender’s
underwritten net operating income of the Properties based upon historical and pro forma operating expenses. 
 (aa) Additional
Matters. Lender shall have received such other certificates, opinions, documents and instruments relating to the Loan as may have been reasonably requested by Lender. All corporate and other proceedings, all other documents (including all
documents referred to in this Agreement and not appearing as exhibits to this Agreement) and all legal matters in connection with the Loan shall be reasonably satisfactory in form and substance to Lender. 

ARTICLE 9 

MISCELLANEOUS 

Section 9.1 Successors. Except as otherwise provided in this Agreement, whenever in this Agreement any of the parties to this
Agreement is referred to, such reference shall be deemed to include the successors and permitted assigns of such party. All covenants, promises and agreements in this Agreement contained, by or on behalf of Borrower or JV Pledgor, shall inure to the
benefit of Lender and its successors and assigns. 

  
 132 

 Section 9.2 GOVERNING LAW. 

(a) THIS AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK. 

(b) ANY LEGAL SUIT, ACTION OR PROCEEDING AGAINST LENDER OR BORROWER ARISING OUT OF OR RELATING TO THIS AGREEMENT OR ANY OF THE OTHER LOAN
DOCUMENTS (OTHER THAN ANY ACTION IN RESPECT OF THE CREATION, PERFECTION OR ENFORCEMENT OF A LIEN OR SECURITY INTEREST CREATED PURSUANT TO ANY LOAN DOCUMENTS NOT GOVERNED BY THE LAWS OF THE STATE OF NEW YORK) MAY BE INSTITUTED IN ANY FEDERAL OR STATE
COURT IN THE BOROUGH OF MANHATTAN, NEW YORK, NEW YORK. BORROWER AND LENDER HEREBY (i) IRREVOCABLY WAIVE, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY OBJECTION THAT THEY MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OF ANY SUCH
SUIT, ACTION OR PROCEEDING BROUGHT IN SUCH A COURT AND ANY CLAIM THAT ANY SUCH PROCEEDING BROUGHT IN SUCH A COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM, (ii) IRREVOCABLY SUBMIT TO THE JURISDICTION OF ANY SUCH COURT IN ANY SUCH SUIT, ACTION
OR PROCEEDING, AND (iii) IRREVOCABLY CONSENT TO SERVICE OF PROCESS BY MAIL, PERSONAL SERVICE OR IN ANY OTHER MANNER PERMITTED BY APPLICABLE LAW, AT THE ADDRESS SPECIFIED IN SECTION 9.4 (AND AGREES THAT SUCH SERVICE AT SUCH ADDRESS IS
SUFFICIENT TO CONFER PERSONAL JURISDICTION OVER ITSELF IN ANY SUCH SUIT, ACTION OR PROCEEDING IN ANY SUCH COURT, AND OTHERWISE CONSTITUTES EFFECTIVE AND BINDING SERVICE IN EVERY RESPECT). 

Section 9.3 Modification, Waiver in Writing, Approval of Lender. Neither this Agreement nor any other Loan Document may be
amended, changed, waived, discharged or terminated, unless such amendment, change, waiver, discharge or termination is in writing signed by Lender and Borrower. No consent or approval of Lender shall be granted hereunder unless such consent or
approval is in writing signed by Lender. Any provision in this Agreement or the other Loan Documents that requires the reasonable consent or approval of Lender shall be deemed to require that such reasonable consent or approval shall not be
unreasonably withheld, conditioned or delayed. 
 Section 9.4 Notices. 

(a) All notices, consents, approvals and requests required or permitted hereunder or under any other Loan Document shall be given in writing by
expedited prepaid delivery service, either commercial or United States Postal Service, with proof of delivery or attempted delivery, addressed as follows (or as a pdf attachment to an e-mail address to the
respective addressees specified below, immediately followed by delivery in one of the other methods provided). Any party hereto may change its address and other contact information for purposes hereof at any time by sending a written notice to the
other parties to this Agreement in the manner provided for in this Section). A notice shall be deemed to have been given when delivered or upon refusal to accept delivery (or in the case of any email delivered after 5:00 pm Eastern time or on a day
that is not a Business Day, the Business Day next following such date of delivery, provided that there is immediately following delivery as aforesaid). 

  
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 If to Lender: 

JPMorgan Chase Bank, National Association 

383 Madison Avenue 
 New York,
New York 10179 
 Attention: Joseph E. Geoghan 

         Joseph.Geoghan@jpmorgan.com 

 

	 	and	          H/2 SO III Funding I LLC 

 c/o H/2
Capital Partners LLC 
 680 Washington Boulevard, Seventh Floor 

Stamford, Connecticut 06901 

Attention: Daniel Ottensoser 

DOttensoser@h2cp.com 
  

	 	with	copies to: 

 JPMorgan Chase Bank, National Association 

383 Madison Avenue 
 New York,
New York 10179 
 Attention: Nancy Alto 

nancy.s.alto@jpmorgan.com 
  

	 	and	          Cadwalader, Wickersham & Taft LLP 

One World Financial Center 
 New
York, New York 10281 
 Attention: William P. McInerney, Esq. 

William.McInerney@cwt.com 
  

	 	and	          Strategic Asset Services LLC 

 375
Park Avenue, 20th Floor 
 New York, New York 10152 

Attention: David Katz 

dkatz@h2sas.com 
  

	 	and	          H/2 Capital Partners LLC 

 680
Washington Boulevard, Seventh Floor 
 Stamford, Connecticut 06901 

Attention: William Stefko, Esq. 

wstefko@h2sas.com 

  
 134 

	 	and	          H/2 Capital Partners LLC 

 680
Washington Boulevard, Seventh Floor 
 Stamford, Connecticut 06901 

Attention: Maury Apple 

mapple@h2cp.com 
  

	 	and	          Cleary Gottlieb Steen & Hamilton LLP 

One Liberty Plaza 
 New York,
New York 10006 
 Attention: Kimberly B. Blacklow, Esq. 

kblacklow@cgsh.com 
 If to Borrower or JV
Pledgor: 
 c/o Seritage Growth Properties, L.P. 

54 W. 40th Street, Suite 10N 

New York, NY 10018 
 Attention:
Matthew Fernand 
 Executive Vice President & General Counsel 

mfernand@seritage.com 
 and

 Mary Rottler
 Executive
Vice President, Operations and Leasing 
 mrottler@seritage.com 

with copies to: 
 Mayer Brown
LLP 
 71 S. Wacker Dr. 

Chicago, IL 60606 
 Attention:
Heather Adkerson 
  HAdkerson@mayerbrown.com 

and: 
 Wachtell, Lipton,
Rosen & Katz 
 51 W. 52nd Street 

New York, NY 10019 
 Attention:
Josh Feltman 
  jafeltman@wlrk.com 

(b) Borrower and JV Pledgor hereby appoint Seritage SRC Finance LLC (the “Borrower Representative”) to serve as agent on
behalf of all Borrowers and all JV Pledgors to receive any notices required to be delivered to any or all Borrowers and all JV Pledgors 

  
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hereunder or under the other Loan Documents and to be the sole party authorized to deliver notices on behalf of the Borrowers and all JV Pledgors hereunder and under each of the other Loan
Documents. Any notice delivered to the Borrower Representative shall be deemed to have been delivered to all Borrowers and all JV Pledgors, and any notice received from the Borrower Representative shall be deemed to have been received from all
Borrowers and all JV Pledgors. The Borrower and the JV Pledgors shall be entitled from time to time to appoint a replacement Borrower Representative by written notice delivered to Lender and signed by both the new Borrower Representative and the
Borrower Representative being so replaced. 
 Section 9.5 TRIAL BY JURY. LENDER, BORROWER AND JV PLEDGOR, TO THE FULLEST EXTENT
THAT THEY MAY LAWFULLY DO SO, HEREBY AGREE NOT TO ELECT A TRIAL BY JURY OF ANY ISSUE TRIABLE OF RIGHT BY JURY, AND WAIVE ANY RIGHT TO TRIAL BY JURY FULLY TO THE EXTENT THAT ANY SUCH RIGHT SHALL NOW OR HEREAFTER EXIST WITH REGARD TO THE LOAN
DOCUMENTS, OR ANY CLAIM, COUNTERCLAIM OR OTHER ACTION ARISING IN CONNECTION THEREWITH. THIS WAIVER OF RIGHT TO TRIAL BY JURY IS GIVEN KNOWINGLY AND VOLUNTARILY BY LENDER, BORROWER AND JV PLEDGOR AND IS INTENDED TO ENCOMPASS INDIVIDUALLY EACH
INSTANCE AND EACH ISSUE AS TO WHICH THE RIGHT TO A TRIAL BY JURY WOULD OTHERWISE ACCRUE. LENDER, BORROWER AND JV PLEDGOR ARE EACH HEREBY INDIVIDUALLY AUTHORIZED TO FILE A COPY OF THIS PARAGRAPH IN ANY PROCEEDING AS CONCLUSIVE EVIDENCE OF THIS
WAIVER. 
 Section 9.6 Headings. The Article and Section headings in this Agreement are included in this Agreement for
convenience of reference only and shall not constitute a part of this Agreement for any other purpose. 
 Section 9.7
Assignment. 
 (a) Neither Borrower nor JV Pledgor may sell, assign or otherwise transfer any rights, obligations or other of its
interest in or under the Loan Documents. 
 (b) Lender and each assignee of all or a portion of the Loan shall have the right from time to
time in its discretion and without the consent of Borrower to sell, assign, syndicate, Securitize, encumber, hypothecate or otherwise transfer one or more of the Notes or any interest therein (in each case, an “Assignment”) and/or
sell a participation interest in one or more of the Notes (a “Participation”); provided that, so long as no Event of Default is then continuing, Borrower’s consent in its sole discretion will be required in connection
with (i) any such Assignment (other than transfers of securities backed by the Loan) or Participation to any Person listed on Schedule J-1 hereto and (ii) any Assignment or Participation in the unfunded portion of any A-2 Note other
than to (1) another Lender that holds an A-2 Note or (2) a Qualified Institutional Lender. Lender will consult on a non-binding basis with Borrower with respect to any assignment of an unfunded
commitment to a Qualified Institutional Lender. Borrower shall and shall cause Guarantor to reasonably cooperate with Lender, at Lender’s request, in order to effectuate any such Assignment or Participation, and Borrower shall promptly provide
such information, legal opinions and documents relating to each Required SPE, Guarantor, the Properties, the Approved Property Manager and any Tenants as Lender may 

  
 136 

 
reasonably request in connection with such Assignment; provided, Borrower and Guarantor shall not be required to incur out-of-pocket costs pursuant to this sentence in respect of
cooperation provided pursuant to the Cooperation Agreement, other than in respect of their own legal costs. In the case of an Assignment, (i) each assignee shall have, to the extent of such Assignment, the rights, benefits and obligations of
the assigning Lender as a “Lender” hereunder and under the other Loan Documents, (ii) the assigning Lender shall, to the extent that rights and obligations hereunder have been assigned by it pursuant to an Assignment, relinquish its
rights and be released from its obligations under this Agreement, and (iii) one Lender shall serve as agent for all Lenders and shall be the sole Lender to whom notices, requests and other communications shall be addressed and the sole party
authorized to grant or withhold consents hereunder on behalf of the Lenders (subject, in each case, to appointment of a Servicer, pursuant to Section 9.22, to receive such notices, requests and other communications and/or to grant or
withhold consents, as the case may be). Lender or, upon the appointment of a Servicer, such Servicer, shall maintain, or cause to be maintained, as non-fiduciary agent for Borrower, a register on which it
shall enter the name or names of the registered owner or owners from time to time of the Notes. Upon effectiveness of any Assignment of any Note in part, Borrower will promptly provide to the assignor and the assignee separate Notes in the amount of
their respective interests (but, if applicable, with a notation thereon that it is given in substitution for and replacement of an original Note or any replacement thereof), and otherwise in the form of such Note, upon return of the Note then being
replaced. Each potential or actual assignee, participant or investor in a Securitization, and each Rating Agency, shall be entitled to receive all information received by Lender under this Agreement, except that, without Borrower’s consent in
its sole discretion, no assignee or participant that is a Person listed on Schedule J-2 hereto, and no agent, attorney, advisor or representative of any such Person, shall be entitled to receive any
Proprietary Information; provided that the foregoing shall not apply in connection with any Securitization of the Loan. After the effectiveness of any Assignment, the party conveying the Assignment shall provide notice to Borrower and each
Lender of the identity and address of the assignee. Notwithstanding anything in this Agreement to the contrary, after an Assignment, the assigning Lender (in addition to the assignee) shall continue to have the benefits of any indemnifications
contained in this Agreement that such assigning Lender had prior to such assignment with respect to matters occurring prior to the date of such assignment. Each Lender that sells a Participation shall, or upon appointment of a Servicer, such
Servicer shall, acting solely for this purpose as a non-fiduciary agent of the Borrower, maintain a register on which it enters the name and address of each participant and the principal amounts (and stated
interest) of each participant’s interest in the Loan under the Loan Documents (the “Participant Register”); provided that no Lender shall have any obligation to disclose all or any portion of the Participant Register (including
the identity of any participant or any information relating to a participant’s interest in the Loan) to any Person except to the extent that such disclosure is necessary to establish that such Loan is in registered form under Section 5f.103-1(c) of the United States Treasury Regulations. 
 (c) If, pursuant to this Section,
any interest in this Agreement or any Note is transferred to any transferee, such transferee shall, promptly upon receipt of written request from Borrower, furnish to Borrower an IRS Form W-9, or an
appropriate IRS Form W-8, as applicable, or any successor form thereof having substantially the same effect. 

  
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 Section 9.8 Severability. Wherever possible, each provision of this Agreement shall
be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement shall be prohibited by or invalid under applicable law, such provision shall be ineffective to the extent of such prohibition or
invalidity, without invalidating the remainder of such provision or the remaining provisions of this Agreement. All covenants hereunder shall be given independent effect so that if a particular action or condition is not permitted by any of such
covenants, the fact that it would be permitted by an exception to, or would otherwise be within the limitations of, another covenant shall not avoid the occurrence of a Default or an Event of Default if such action is taken or condition exists. 

Section 9.9 Preferences; Waiver of Marshalling of Assets. Lender shall have no obligation to marshal any assets in favor of
Borrower or any other party or against or in payment of any or all of the obligations of Borrower pursuant to the Loan Documents. Lender shall have the continuing and exclusive right to apply or reverse and reapply any and all payments by Borrower
to any portion of the obligations of Borrower hereunder and under the Loan Documents. If any payment to Lender is subsequently invalidated, declared to be fraudulent or preferential, set aside or required to be repaid to a trustee, receiver or any
other party under any bankruptcy law, state or federal law, common law or equitable cause, then the obligations hereunder or portion thereof intended to be satisfied by such payment shall be revived and continue in full force and effect, as if such
payment had not been made. Borrower hereby waives any legal right otherwise available to Borrower that would require the sale of any Collateral or JV Collateral either separate or apart from the other, or require Lender to exhaust its remedies
against any Collateral or the JV Collateral before proceeding against the other. Without limiting the foregoing, to the fullest extent permitted by law, Borrower hereby waives and shall not assert any rights in respect of a marshalling of Collateral
or JV Collateral, a sale in the inverse order of alienation, any homestead exemption, the administration of estates of decedents, or any other matters whatsoever to defeat, reduce or affect the right of Lender under the Loan Documents to a sale of
the Collateral or the JV Collateral or any portion thereof in any sequence and any combination as determined by Lender in its sole discretion. 

Section 9.10 Remedies of Borrower. If a claim is made that Lender or its agents have unreasonably delayed acting or acted
unreasonably in any case where by law or under this Agreement or the other Loan Documents any of such Persons has an obligation to act promptly or reasonably, Borrower agrees that no such Person shall be liable for any monetary damages, and
Borrower’s sole remedy shall be limited to commencing an action seeking specific performance, injunctive relief and/or declaratory judgment; provided, however, that the forgoing shall not prevent Borrower from obtaining a monetary
judgment against Lender if it is determined by a court of competent jurisdiction that Lender acted with gross negligence, bad faith or willful misconduct. Notwithstanding anything herein to the contrary, Borrower shall not assert, and hereby waives,
any claim against Lender and/or its Affiliates, directors, employees, attorneys, agents or sub-agents, on any theory of liability, for special, indirect, consequential or punitive damages (whether or not the
claim therefor is based on contract, tort or duty imposed by any applicable Legal Requirement) arising out of, as a result of, or in any way related to, the Loan Agreement or any other Loan Document or any agreement or instrument contemplated hereby
or thereby or referred to herein or therein, the transactions contemplated hereby or thereby, the Loan or the use of the proceeds thereof or any act or omission or event occurring in connection therewith, and Borrower hereby waives, releases and
agrees not to sue upon any such claim for any such damages, whether or not accrued and whether or not known or suspected to exist in its favor. 

  
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 Section 9.11 Offsets, Counterclaims and Defenses. All payments made by Borrower
hereunder or under the other Loan Documents shall be made irrespective of, and without any deduction for, any offsets, counterclaims or defenses. Borrower waives the right to assert a counterclaim, other than a mandatory or compulsory counterclaim,
in any action or proceeding brought against it by Lender arising out of or in any way connected with the Notes, this Agreement, the other Loan Documents or the Indebtedness. Any assignee of Lender’s interest in the Loan shall take the same free
and clear of all offsets, counterclaims or defenses against the assigning Lender. 
 Section 9.12 No Joint Venture. Nothing in
this Agreement is intended to create a joint venture, partnership, tenancy-in-common or joint tenancy relationship between Borrower and Lender, nor to grant Lender any
interest in any Property other than that of mortgagee or lender. 
 Section 9.13 Conflict; Construction of Documents. In the
event of any conflict between the provisions of this Agreement and the provisions of the other Loan Documents, the provisions of this Agreement shall prevail. The parties acknowledge that they were each represented by competent counsel in connection
with the negotiation, drafting and execution of the Loan Documents and that the Loan Documents shall not be subject to the principle of construing their meaning against the party that drafted same. 

Section 9.14 Brokers and Financial Advisors. Borrower represents that neither it nor Guarantor has dealt with any financial
advisors, brokers, underwriters, placement agents, agents or finders in connection with the transactions contemplated by this Agreement. Borrower agrees to indemnify and hold Lender harmless from and against any and all claims, liabilities, costs
and expenses of any kind in any way relating to or arising from a claim by any Person that such Person acted on behalf of Borrower in connection with the transactions contemplated in this Agreement. The provisions of this Section shall survive
the expiration and termination of this Agreement and the repayment of the Indebtedness. 
 Section 9.15 Counterparts. This
Agreement may be executed in any number of counterparts, each of which when so executed and delivered shall be an original, but all of which shall together constitute one and the same instrument. Any counterpart delivered by facsimile, pdf or other
electronic means shall have the same import and effect as original counterparts and shall be valid, enforceable and binding for the purposes of this Agreement. 

Section 9.16 Estoppel Certificates. 

(a) Borrower shall execute, acknowledge and deliver to Lender, within five days after receipt of Lender’s written request therefor at any
time from time to time, a statement in writing setting forth (A) the Principal Indebtedness, (B) the date on which installments of interest and/or principal were last paid, (C) any offsets or defenses to the payment of the
Indebtedness, (D) that the Notes, this Agreement, the Mortgage and the other Loan Documents are valid, legal and binding obligations and have not been modified or if modified, giving particulars of such modification, (E) that neither
Borrower nor, to Borrower’s knowledge, 

  
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Lender, is in default under the Loan Documents (or specifying any such default), (F) that all Leases are in full force and effect and have not been modified (except in accordance with the
Loan Documents), (G) whether or not any of the Tenants under the Leases or any of the counterparties under the Property Agreements are in material default under the Leases or Property Agreements, as applicable (setting forth the specific nature
of any such material defaults) and (H) such other matters as Lender may reasonably request. Any prospective purchaser of any interest in a Loan shall be permitted to rely on such certificate. 

(b) Upon Lender’s written request, Borrower shall use commercially reasonable efforts to obtain from each Tenant and Property Agreement
counterparty and thereafter promptly deliver to Lender duly executed estoppel certificates from any one or more Tenants or Property Agreement counterparties specified by Lender, attesting to such facts regarding the Leases or Property Agreements as
Lender may reasonably require or in the form and/or substance required to be provided by such Tenant or counterparty pursuant to its Lease or Property Agreement, as applicable, including attestations that each Lease or Property Agreement, as
applicable, covered thereby is in full force and effect with no material defaults thereunder on the part of any party, that rent has not been paid more than one month in advance, except as security, and that the Tenant or Property Agreement
counterparty, as applicable, claims no defense or offset against the full and timely performance of its obligations under the Lease or Property Agreement. Borrower shall not be required to deliver such certificates more frequently than one time in
any 12-month period, other than the 12-month period during which a Securitization occurs or is attempted. 

Section 9.17 General Indemnity; Payment of Expenses. 

(a) Borrower, at its sole cost and expense, shall protect, indemnify, reimburse, defend and hold harmless Lender and its officers, partners,
members, directors, trustees, advisors, employees, agents, sub-agents, Affiliates, successors, participants and assigns of any and all of the foregoing (collectively, the “Indemnified
Parties”) for, from and against any and all Damages of any kind or nature whatsoever that may be imposed on, incurred by, or asserted against any of the Indemnified Parties, in any way relating to or arising out of Lender’s interest in
the Loan; provided, however, that no Indemnified Party shall have the right to be indemnified hereunder to the extent that such Damages have been found by a final, non-appealable judgment of a
court of competent jurisdiction to have resulted from the gross negligence or willful misconduct of such Indemnified Party. 
 (b) If for
any reason (including violation of law or public policy) the undertakings to defend, indemnify, pay and hold harmless set forth in this Section are unenforceable in whole or in part or are otherwise unavailable to an Indemnified Party or
insufficient to hold it harmless, then Borrower shall contribute to the amount paid or payable by the Indemnified Party as a result of any Damages the maximum amount Borrower is permitted to pay under Legal Requirements. The obligations of Borrower
under this Section will be in addition to any liability that Borrower may otherwise have hereunder and under the other Loan Documents. 

(c) To the extent any Indemnified Party has notice of a claim for which it intends to seek indemnification hereunder, such Indemnified Party
shall give prompt written 

  
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notice thereof to Borrower, provided that failure by Lender to so notify Borrower will not relieve Borrower of its obligations under this Section, except to the extent that Borrower suffers
actual prejudice as a result of such failure. In connection with any claim for which indemnification is sought hereunder, Borrower shall have the right to defend the applicable Indemnified Party (if requested by the applicable Indemnified Party, in
the name of such Indemnified Party) from such claim by attorneys and other professionals reasonably approved by the applicable Indemnified Party. Upon assumption by Borrower of any defense pursuant to the immediately preceding sentence, Borrower
shall have the right to control such defense, provided that the Applicable Indemnified Party shall have the right to reasonably participate in such defense and Borrower shall not consent to the terms of any compromise or settlement of any action
defended by Borrower in accordance with the foregoing without the prior consent of the applicable Indemnified Party, unless such compromise or settlement (i) includes an unconditional release of the applicable Indemnified Party from all
liability arising out of such action and (ii) does not include a statement as to or an admission of fault, culpability or a failure to act, by or on behalf of the applicable Indemnified Party. The applicable Indemnified Party shall have the
right to retain its own counsel if (i) Borrower shall have failed to employ counsel reasonably satisfactory to the applicable Indemnified Party in a timely manner, or (ii) the applicable Indemnified Party shall have been advised by counsel
that there are actual or potential material conflicts of interest between Borrower and the applicable Indemnified Party, including situations in which there are one or more legal defenses available to the applicable Indemnified Party that are
different from or additional to those available to Borrower. So long as Borrower is conducting the defense of any action defended by Borrower in accordance with the foregoing in a prudent and commercially reasonable manner, Lender and the applicable
Indemnified Party shall not compromise or settle such action defended without Borrower’s consent, which shall not be unreasonably withheld or delayed. Upon demand, Borrower shall pay or, in the sole discretion of the applicable Indemnified
Party, reimburse the applicable Indemnified Party for the payment of reasonable fees and disbursements of attorneys, engineers, environmental consultants, laboratories and other professionals retained by the Applicable Indemnified Party in
accordance with this Section in connection with defending any claim subject to indemnification hereunder. 
 (d) Any amounts payable to
Lender by reason of the application of this Section shall be secured by the Mortgage and shall become immediately due and payable and shall bear interest at the Default Rate from the date Damages are sustained by the Indemnified Parties until
paid. 
 (e) The provisions of and undertakings and indemnification set forth in this Section shall survive the satisfaction and
payment in full of the Indebtedness and termination of this Agreement. 
 (f) Borrower shall reimburse Lender upon receipt of written notice
from Lender for (i) all out-of-pocket costs and expenses incurred by Lender (or any of its Affiliates) in connection with the origination of the Loan, including
legal fees and disbursements, accounting fees, and the costs of the Appraisals, the Engineering Reports, the Title Insurance Policies, the Surveys, the Environmental Reports and any other third-party diligence
materials; (ii) all out-of-pocket costs and expenses incurred by Lender (or any of its Affiliates) in connection with (A) monitoring Borrower’s ongoing
performance of and compliance with Borrower’s agreements and covenants contained in this Agreement and the other Loan Documents on its part to be 

  
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performed or complied with after the Closing Date, including confirming compliance with environmental and insurance requirements, (B) the negotiation, preparation, execution, delivery and
administration of any consents, amendments, waivers or other modifications to this Agreement and the other Loan Documents and any other documents or matters relating hereto (including Leases, Material Agreements, JV Documents, Ground Leases and
Permitted Encumbrances), (C) filing, registration and recording fees and expenses and other similar expenses incurred in creating and perfecting the Liens in favor of Lender pursuant to this Agreement and the other Loan Documents (including the
filing, registration or recording of any instrument of further assurance) and all federal, state, county and municipal, taxes (including, if applicable, intangible taxes), search fees, title insurance premiums, duties, imposts, assessments and
charges arising out of or in connection with the execution and delivery of the Loan Documents, any mortgage supplemental thereto, any security instrument with respect to the Collateral or the JV Collateral or any instrument of further assurance,
(D) enforcing or preserving any rights, in response to third party claims or the prosecuting or defending of any action or proceeding or other litigation, in each case against, under or affecting Borrower, Guarantor, this Agreement, the other
Loan Documents or any Collateral or any JV Collateral (including, for avoidance of doubt, reasonable, periodic monitoring of any litigation related to the Approved Separation Transaction) and (E) the satisfaction of any Rating Condition in
respect of any matter required or requested by Borrower hereunder, and (iii) all actual out-of-pocket costs and expenses (including attorney’s fees and, if the
Loan has been Securitized, special servicing fees) incurred by Lender (or any of its Affiliates) in connection with the enforcement of any obligations of Borrower, or a Default by Borrower, under the Loan Documents, including any actual or attempted
foreclosure, deed-in-lieu of foreclosure, refinancing, restructuring, settlement or workout and any insolvency or bankruptcy proceedings (including any applicable transfer taxes). Without limiting the foregoing, Borrower shall pay all costs,
expenses and fees of Lender and its Servicer, operating advisor and securitization trustee resulting from Defaults or reasonably imminent Defaults or requests by Borrower (including enforcement expenses and any liquidation fees, workout fees,
special servicing fees, operating advisor consulting fees or any other similar fees and interest payable on advances made by the Servicer or the securitization trustee with respect to delinquent debt service payments or expenses of curing
Borrower’s defaults under the Loan Documents, and any expenses paid by Servicer or a trustee in respect of the protection and preservation of any Property, such as payment of taxes and insurance premiums) and the costs of all property
inspections and/or appraisals (or any updates to any existing inspection or appraisal) that Servicer may be required to obtain due to a request by Borrower or the occurrence of a Default. 

Section 9.18 No Third-Party Beneficiaries. This Agreement and the other Loan Documents are
solely for the benefit of Lender and Borrower, and nothing contained in this Agreement or the other Loan Documents shall be deemed to confer upon anyone other than Lender, Borrower and Indemnified Parties any right to insist upon or to enforce the
performance or observance of any of the obligations contained herein or therein. All conditions to the obligations of Lender to make the Loan hereunder are imposed solely and exclusively for the benefit of Lender, and no other Person shall have
standing to require satisfaction of such conditions in accordance with their terms or be entitled to assume that Lender will refuse to make the Loan in the absence of strict compliance with any or all thereof, and no other Person shall under any
circumstances be deemed to be a beneficiary of such conditions, any or all of which may be freely waived in whole or in part by Lender if, in Lender’s sole discretion, Lender deems it advisable or desirable to do so. 

  
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 Section 9.19 Recourse. 

(a) Notwithstanding anything in this Agreement or any other Loan Document to the contrary, but subject to the qualifications set forth in this
Section 9.19, Lender shall not enforce Borrower’s obligation to pay the Indebtedness by any action or proceeding wherein a deficiency judgment or other judgment establishing personal liability shall be sought against Borrower or any
of its Affiliates, or any Exculpated Person, except for foreclosure actions or any other appropriate actions or proceedings in order to fully exercise Lender’s remedies in respect of, and to realize upon, the Collateral and the JV Collateral,
and except for any actions to enforce any obligations expressly assumed or guaranteed by any guarantor, indemnitor or similar party (whether or not such party is an Exculpated Person) under the Loan Documents. 

(b) Borrower shall indemnify Lender and hold Lender harmless from and against any and all Damages to Lender (including the legal and other
expenses of enforcing the obligations of Borrower under this Section and Guarantor under the Guaranty) resulting from or arising out of any of the following (the “Indemnified Liabilities”), which Indemnified Liabilities shall
be guaranteed by Guarantor pursuant to the Guaranty: 
 (i) any wrongful Waste or wrongful removal at any of the Properties
of any Personal Property or other Collateral committed or permitted by Borrower, Guarantor or any of their respective Affiliates; 

(ii) any fraud or material misrepresentation committed by Borrower, JV Pledgor, SHLD, Guarantor or any of their respective
Affiliates; 
 (iii) any willful misconduct by Borrower, JV Pledgor, Guarantor or any of their respective Affiliates that
results in any adverse effect on the Collateral or the JV Collateral, the ability of Borrower to pay the Loan or the ability of Lender to enforce its rights and remedies under the Loan Documents (including any criminal acts and wrongful contest to
the validity of the Loan documents or bad faith acts to interfere, hinder delay or obstruct the efforts of Lender to exercise any rights and remedies available to Lender as provided herein and in the other Loan Documents during the continuance of an
Event of Default; and Borrower’s and/or JV Pledgor’s bad faith refusal to comply with Section 5.9 hereof) other than, in each case, defenses raised in good faith; 

(iv) the misappropriation or misapplication by Borrower, JV Pledgor, Guarantor or any of their respective Affiliates of any
Loss Proceeds, Revenues, security deposits and/or other amounts in violation of the Loan Documents; 
 (v) any voluntary
incurrence of Debt if and to the extent the continued existence of such Debt is prohibited hereunder; 
 (vi) any breach by
Borrower or Guarantor of any representation or covenant regarding environmental matters contained in this Agreement or in the Environmental Indemnity; 

  
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 (vii) the failure to apply available funds from cash flow at the Properties
(after such cash flow has been disbursed from the Cash Management Account in accordance with Section 3.2) to pay or maintain the Policies or to pay the amount of any deductible required thereunder following a Casualty or other insurance
claim, excluding any such failure resulting from Lender’s failure to disburse funds from reserves maintained for such purpose under the Loan Documents if required to be disbursed in accordance with this Agreement; 

(viii) the failure to apply available funds from cash flow at the Properties (after such cash flow has been disbursed from the
Cash Management Account in accordance with Section 3.2) to pay Taxes, excluding any such failure resulting from Lender’s failure to disburse funds from reserves maintained for such purpose under the Loan Documents if required to be
disbursed in accordance with this Agreement; 
 (ix) the failure to apply available funds from cash flow at the Properties
(after such cash flow has been disbursed from the Cash Management Account) in accordance with Section 3.2) to pay charges (including charges for labor and materials) that results in a Lien on any Property, unless contested by Borrower in
good faith and otherwise in accordance with the terms of this Agreement and the other Loan Documents; 
 (x) any material
breach of Section 4.17 and/or 6.15, excluding any breach resulting solely from a failure of the Properties to generate sufficient cash flow or a failure of Guarantor to contribute additional capital; 

(xi) any fees or commissions paid by Borrower to any Affiliate in violation of the terms of the Loan Documents; and 

(xii) any termination or modification of the SHLD Master Lease, the SHLD Master Lease Guaranty, the SHLD PSA, the SHLD TSA, any
Approved Management Agreement, any JV Documents or any Ground Lease in violation of the Loan Documents. 
 (c) In addition to the foregoing,
the Loan shall be fully recourse to Borrower and Guarantor, jointly and severally, if (i) Borrower Transfers any of the Properties, the JV Collateral or other Collateral or there is a Prohibited Change of Control, in each case, in violation of
the Loan Documents and without Lender’s prior written consent in its sole discretion, (ii) Borrower creates a voluntary Lien on any of the Properties, the JV Collateral or other Collateral to secure additional financing or Borrower’s
equityholders create a Prohibited Pledge, in each case in violation of the Loan Documents and without Lender’s prior written consent in its sole discretion; (iii) any petition for bankruptcy, insolvency, dissolution or liquidation under
the Bankruptcy Code or any similar federal or state law is filed by, consented to, or acquiesced in by, any Required SPE, (iv) any Required SPE or any of their respective Affiliates (including Guarantor) shall have colluded with other creditors
to cause an involuntary filing under the Bankruptcy Code or similar federal or state law with respect to any Required SPE, or (v) any Required SPE fails to be, and to at all times have been, a
Single-Purpose Entity, which failure results in a substantive consolidation of Borrower with any Affiliate in a bankruptcy or similar proceeding (or the filing of a motion for substantive consolidation in
bankruptcy citing any such breach), except, in each case with respect to any action taken by any Person (other than by 

  
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Borrower, Guarantor or any Affiliate thereof) after the foreclosure or assignment-in-lieu of foreclosure by Mezzanine Lender on the Equity Interests in Borrower in connection with the exercise of
remedies by Mezzanine Lender. All of Borrower’s liabilities under this Section 9.19 shall be guaranteed by Guarantor pursuant to the Guaranty. 

(d) The foregoing limitations on personal liability shall in no way impair or constitute a waiver of the validity of the Notes, the
Indebtedness secured by the Collateral or the JV Collateral, or the Liens on the Collateral or the JV Collateral, or the right of Lender, as mortgagee or secured party, to foreclose and/or enforce its rights with respect to the Collateral or the JV
Collateral after an Event of Default. Nothing in this Agreement shall be deemed to be a waiver of any right which Lender may have under the Bankruptcy Code to file a claim for the full amount of the debt owing to Lender by Borrower or to require
that all Collateral or the JV Collateral shall continue to secure all of the Indebtedness owing to Lender in accordance with the Loan Documents. Lender may seek a judgment on the Notes (and, if necessary, name Borrower in such suit) as part of
judicial proceedings to foreclose on any Collateral or the JV Collateral or as a prerequisite to any such foreclosure or to confirm any foreclosure or sale pursuant to power of sale thereunder, and in the event any suit is brought on the Notes, or
with respect to any Indebtedness or any judgment rendered in such judicial proceedings, such judgment shall constitute a Lien on and may be enforced on and against the Collateral or the JV Collateral and the rents, profits, issues, products and
proceeds thereof. Nothing in this Agreement shall impair the right of Lender to accelerate the maturity of the Notes upon the occurrence of an Event of Default, nor shall anything in this Agreement impair or be construed to impair the right of
Lender to seek personal judgments, and to enforce all rights and remedies under applicable law, jointly and severally against any indemnitors and guarantors to the extent allowed by any applicable Loan Documents. The provisions set forth in this
Section are not intended as a release or discharge of the obligations due under the Notes or under any Loan Documents, but are intended as a limitation, to the extent provided in this Section, on Lender’s right to sue for a deficiency or
seek a personal judgment. 
 Section 9.20 Right of Set-Off. In addition to any rights
now or hereafter granted under applicable law or otherwise, and not by way of limitation of any such rights, during the continuance of an Event of Default, Lender may from time to time, without presentment, demand, protest or other notice of any
kind (all of such rights being hereby expressly waived), set-off and appropriate and apply any and all deposits (general or special) and any other indebtedness at any time held or owing by Lender (including
branches, agencies or Affiliates of Lender wherever located) to or for the credit or the account of Borrower against the obligations and liabilities of Borrower to Lender hereunder, under the Notes, the other Loan Documents or otherwise,
irrespective of whether Lender shall have made any demand hereunder and although such obligations, liabilities or claims, or any of them, may be contingent or unmatured, and any such set-off shall be deemed to
have been made immediately upon the occurrence of an Event of Default even though such charge is made or entered on the books of Lender subsequent thereto. 

Section 9.21 Exculpation of Lender. Lender neither undertakes nor assumes any responsibility or duty to Borrower or any other
party to select, review, inspect, examine, supervise, pass judgment upon or inform Borrower or any third party of (a) the existence, quality, adequacy or suitability of appraisals of the Properties or other Collateral or the JV Collateral,
(b) any environmental report, or (c) any other matters or items, including engineering, 

  
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soils and seismic reports that are contemplated in the Loan Documents. Any such selection, review, inspection, examination and the like, and any other due diligence conducted by Lender, is solely
for the purpose of protecting Lender’s rights under the Loan Documents, and shall not render Lender liable to Borrower or any third party for the existence, sufficiency, accuracy, completeness or legality thereof. 

Section 9.22 Servicer. 

(a) Lender may delegate any and all rights and obligations of Lender hereunder and under the other Loan Documents to the Servicer upon notice
by Lender to Borrower, whereupon any notice or consent from the Servicer to Borrower, and any action by Servicer on Lender’s behalf, shall have the same force and effect as if Servicer were Lender. As of the Closing Date, Lender has appointed
Strategic Asset Services LLC (“SAS”) as Servicer. Servicer will be the primary point of contact with Borrower responsible for processing all Borrower requests and implementing all other servicing decisions (including, without
limitation and to the extent applicable, approval of advances of the Future Advance Amount, approval of any Redevelopment Plan and Budget and approval of any Major Lease) with respect to the Loan. 

(b) On each Payment Date, Borrower shall pay Servicer a primary servicing fee at a rate of 0.03% per annum, computed on the basis of the
same principal amount, on the same interest accrual basis, and for the same interest accrual period respecting which any related interest payment on the Loan is (or would have been) computed (the “Primary Servicing Fee”). The
Primary Servicing Fee shall be paid in accordance with Section 3.2(b). 
 Section 9.23 No Fiduciary Duty. 

(a) Borrower acknowledges that, in connection with this Agreement, the other Loan Documents and the Transaction, Lender has relied upon and
assumed the accuracy and completeness of all of the financial, legal, regulatory, accounting, tax and other information provided to, discussed with or reviewed by Lender for such purposes, and Lender does not assume any liability therefor or
responsibility for the accuracy, completeness or independent verification thereof. Lender, its Affiliates and their respective equityholders and employees (for purposes of this Section, the “Lending Parties”) have no obligation to
conduct any independent evaluation or appraisal of the assets or liabilities (including any contingent, derivative or off-balance sheet assets and liabilities) of Guarantor, Borrower or any other Person or any
of their respective Affiliates or to advise or opine on any related solvency or viability issues. 
 (b) It is understood and agreed that
(i) the Lending Parties shall act under this Agreement and the other Loan Documents as an independent contractor, (ii) the Transaction is an arm’s-length commercial transactions between the
Lending Parties, on the one hand, and Borrower, on the other, (iii) each Lending Party is acting solely as principal and not as the agent or fiduciary of Borrower, Guarantor or their respective Affiliates, stockholders, employees or creditors
or any other Person and (iv) nothing in this Agreement, the other Loan Documents, the Transaction or otherwise shall be deemed to create (A) a fiduciary duty (or other implied duty) on the part of any Lending Party to Guarantor, Borrower,
any of their respective Affiliates, stockholders, employees or creditors, or any other Person or (B) a fiduciary or agency relationship between Guarantor, Borrower or any of their respective Affiliates, stockholders,

  
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employees or creditors, on the one hand, and the Lending Parties, on the other. Borrower agrees that neither it nor Guarantor nor any of their respective Affiliates shall make, and hereby waives,
any claim against the Lending Parties based on an assertion that any Lending Party has rendered advisory services of any nature or respect, or owes a fiduciary or similar duty to Borrower, Guarantor of their respective Affiliates, stockholders,
employees or creditors. Nothing in this Agreement or the other Loan Documents is intended to confer upon any other Person (including Affiliates, stockholders, employees or creditors of Borrower and Guarantor) any rights or remedies by reason of any
fiduciary or similar duty. 
 (c) Borrower acknowledges that it has been advised that the Lending Parties include full service financial
services firms and/or asset management firms engaged, either directly or through Affiliates in various activities, including securities trading, investment banking and financial advisory, investment management, principal investment, hedging,
financing and brokerage activities and financial planning and benefits counseling for both companies and individuals. In the ordinary course of these activities, the Lending Parties may make or hold a broad array of investments and actively trade
debt and equity securities (or related derivative securities) and/or financial instruments (including loans) for their own account and for the accounts of their customers and may at any time hold long and short positions in such securities and/or
instruments. Such investment and other activities may involve securities and instruments of Affiliates of Borrower, including Guarantor, as well as of other Persons that may (i) be involved in transactions arising from or relating to the
Transaction, (ii) be customers or competitors of Borrower, Guarantor and/or their respective Affiliates, or (iii) have other relationships with Borrower, Guarantor and/or their respective Affiliates. In addition, the Lending Parties may
provide investment banking, underwriting and financial advisory services to such other Persons. The Lending Parties may also co-invest with, make direct investments in, and invest or co-invest client monies in or with funds or other investment vehicles managed by other parties, and such funds or other investment vehicles may trade or make investments in securities of Affiliates of Borrower,
including Guarantor, or such other Persons. The Transaction may have a direct or indirect impact on the investments, securities or instruments referred to in this paragraph. Although the Lending Parties in the course of such other activities and
relationships may acquire information about the Transaction or other Persons that may be the subject of the Transaction, the Lending Parties shall have no obligation to disclose such information, or the fact that the Lending Parties are in
possession of such information, to Borrower, Guarantor or any of their respective Affiliates or to use such information on behalf of Borrower, Guarantor or any of their respective Affiliates 

(d) Borrower acknowledges and agrees that Borrower has consulted its own legal and financial advisors to the extent it deemed appropriate and
that it is responsible for making its own independent judgment with respect to this Agreement, the other Loan Documents, the Transaction and the process leading thereto. 

Section 9.24 Borrower Information. 

(a) Borrower shall make available to Lender all information concerning its business and operations that Lender may reasonably request. Subject
to Section 9.24(b), Lender shall have the right to disclose any and all information provided to Lender by Borrower or Guarantor regarding Borrower, Guarantor, the Loan and the Properties (i) to Affiliates of Lender

  
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and to Lender’s agents and advisors (it being understood that the Persons to whom such disclosure is made will be informed of the confidential nature of such confidential information and
instructed to keep such confidential information confidential), (ii) to any actual or potential assignee, transferee or participant in connection with the contemplated Assignment or Securitization of all or any portion of the Loan or any
participations therein, and to any investors or prospective investors in the Certificates, and their respective advisors and agents, including the operating advisor, or to any direct or indirect contractual counterparties (or the professional
advisors thereto) to any swap or derivative transaction relating to Borrower and its obligations, or to any Person that is a party to a repurchase agreement with respect to the Loan; provided that any potential assignee, transferee,
participant or investor shall be informed of the confidential nature thereof and that, by accepting any such confidential information, it shall be deemed to be bound to keep such information confidential subject to the exceptions set forth in this
Section 9.24(a) (it being agreed that, in connection with a Securitization of all or any portion of the Loan, Lender will have satisfied such obligation if it includes the applicable legend set forth on Schedule Q, or Lender
otherwise has in place or enters into a confidentiality agreement on customary terms with such potential assignee, transferee, participant or investor that, with respect to any such information provided to such potential assignee, transferee,
participant or investor, does not expire earlier than one year from the date such information is provided (Lender agreeing to use good faith efforts (but having no obligation) to obtain a two-year sunset in any new confidentiality agreements entered
into in connection with the Securitization of all or any part of the Loan), (iii) to any Rating Agency in connection with a Securitization or as otherwise required in connection with a disposition of the Loan, (iv) to any Person necessary
or desirable in connection with the exercise of any remedies hereunder or under any other Loan Document following an Event of Default, (v) to any governmental agency, including the Comptroller of the Currency, the Board of Governors of the
Federal Reserve System, the FDIC, the Securities and Exchange Commission and any other regulatory authority that may exercise authority over Lender or any investor in the Certificates (including the Servicer, the Securitization trustee and their
respective agents and employees) or any representative thereof, and to the National Association of Insurance Commissioners, in each case if requested by such governmental agency or otherwise required to comply with the applicable rules and
regulations of such governmental agency or if required pursuant to legal or judicial process, and (vi) in any Disclosure Document (as defined in the Cooperation Agreement). In addition, Lender may disclose the existence of this Agreement and
customary information about this Agreement to market data collectors, similar services providers to the lending industry, and service providers to Lender in connection with the administration and management of this Agreement and the other Loan
Documents. Each party hereto (and each of their respective Affiliates, employees, representatives or other agents) may disclose to any and all Persons, without limitation of any kind, the tax treatment and tax structure of the Transaction and all
materials of any kind (including opinions and other tax analyses) that are provided to any such party relating to such tax treatment and tax structure. For the purpose of this Section, “tax structure” means any facts relevant to the
federal income tax treatment of the Transaction but does not include information relating to the identity of any of the parties hereto or any of their respective Affiliates. Except as expressly set forth above, Lender shall hold all information
regarding Borrower disclosed by Borrower in connection with this Agreement, whether prior to or following the date of this Agreement, confidential, except such information that (i) is or becomes publicly available other than as a result of
disclosure by Lender or (ii) is or becomes available to the Lender from a 

  
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source other than the Borrower, provided that such source is not known by Lender to be subject to a confidentiality obligation to the Borrower or (iii) is independently developed by the
Lender without reference to the information received from Borrower. 
 (b) Notwithstanding the provisions of Section 9.24(a),
without Borrower’s consent in its sole discretion, no Person listed on Schedule J-2 hereto, and no agent, attorney, advisor or representative of any such Person, shall be entitled to receive, and
no Lender shall disclose to any such Person, any Proprietary Information; provided that the foregoing shall not apply in connection with any Securitization of the Loan. 

Section 9.25 PATRIOT Act Records. Lender hereby notifies Borrower that pursuant to the requirements of the PATRIOT Act, it is
required to obtain, verify and record information that identifies Borrower, JV Pledgor and Guarantor, which information includes the name and address of Borrower, JV Pledgor and Guarantor and other information that will allow Lender to identify
Borrower, JV Pledgor or Guarantor in accordance with the PATRIOT Act. 
 Section 9.26 Prior Agreements. THIS AGREEMENT AND THE
OTHER LOAN DOCUMENTS CONTAIN THE ENTIRE AGREEMENT OF THE PARTIES HERETO AND THERETO IN RESPECT OF THE TRANSACTIONS CONTEMPLATED HEREBY AND THEREBY, AND ALL PRIOR AGREEMENTS AMONG OR BETWEEN SUCH PARTIES, WHETHER ORAL OR WRITTEN, INCLUDING ANY TERM
SHEETS, CONFIDENTIALITY AGREEMENTS AND COMMITMENT LETTERS, ARE SUPERSEDED BY THE TERMS OF THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS (EXCEPT THAT ANY ORIGINATION FEE SPECIFIED IN ANY TERM SHEET, COMMITMENT LETTER OR FEE LETTER SHALL BE AN
OBLIGATION OF BORROWER AND SHALL BE PAID AT CLOSING, AND ANY INDEMNIFICATIONS, FLEX PROVISION, EXIT FEES AND THE LIKE PROVIDED FOR THEREIN SHALL SURVIVE THE CLOSING). 

Section 9.27 Publicity. If the Loan is made, Lender may, with the prior written approval of Borrower not to be unreasonably
withheld, issue press releases, advertisements and other promotional materials describing in general terms or in detail Lender’s participation in such transaction, and may utilize photographs of the Properties in such promotional materials.
Borrower shall not make any references to Lender in any press release, advertisement or promotional material issued by Borrower or Guarantor, unless Lender shall have approved of the same in writing prior to the issuance of such press release,
advertisement or promotional material. 
 Section 9.28 Delay Not a Waiver. Neither any failure nor any delay on the part of
Lender in insisting upon strict performance of any term, condition, covenant or agreement, or exercising any right, power, remedy or privilege hereunder, under any other Loan Document or under any other instrument given as security therefor, shall
operate as or constitute a waiver thereof, nor shall a single or partial exercise thereof preclude any other future exercise, or the exercise of any other right, power, remedy or privilege. In particular, and not by way of limitation, by accepting
payment after the due date of any amount payable hereunder or under any other Loan Document, Lender shall not be deemed to have waived any right either to require prompt payment when due of all other amounts due under this Agreement, the Notes or
the other Loan Documents, or to declare a default for failure to effect prompt payment of any such other amount. 

  
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 Section 9.29 Schedules and Exhibits Incorporated. The Schedules and Exhibits annexed
hereto are hereby incorporated herein as a part of this Agreement with the same effect as if set forth in the body hereof. 

Section 9.30 New Borrowers 

(a) At the Borrower’s election, Borrower may cause one or more Properties to be Transferred to one or more New Borrowers upon not less
than 30 days’ prior written notice to Lender, to effectuate a one-time restructuring of the ownership of some or all of the Properties; provided that the Transfer of any Property to a New Borrower pursuant to this clause (ii) shall
be subject to satisfaction of the following conditions: 
 (i) no Event of Default shall be continuing and such Transfer
shall not result in a default under any applicable Lease (including the SHLD Master Lease) or any Material Agreement; 
 (ii)
such New Borrower shall execute and deliver to Lender a joinder to this Agreement (by amendment, restatement, supplement or otherwise) whereby New Borrower assumes all the obligation and liabilities of Borrower hereunder and under the other Loan
Documents in form and substance acceptable to Lender; 
 (iii) each of Seritage REIT and Seritage OP shall have duly executed
and delivered to Lender a reaffirmation of the Guaranty; 
 (iv) New Borrower shall have delivered to Lender such Uniform
Commercial Code financing statements as may be reasonably requested by Lender; 
 (v) such New Borrower shall have delivered
to Lender legal opinions of counsel reasonably acceptable to Lender that are equivalent to the opinions delivered to Lender on the Closing Date, including new nonconsolidation opinions that are reasonably satisfactory to Lender and (following a
Securitization of the Loan) satisfactory to each of the Rating Agencies; and Borrower and the New Borrower shall have delivered such other documents, certificates and legal opinions, including relating to REMIC or grantor trust matters, as
applicable, as Lender shall reasonably request; 
 (vi) such New Borrower shall have delivered to Lender all documents
reasonably requested by it relating to the existence of such New Borrower and the due authorization of the New Borrower to assume the Loan and to execute and deliver the documents described in this Section 9.30, each in form and
substance reasonably satisfactory to Lender, including a certified copy of the applicable resolutions from all appropriate persons, certified copies of the organizational documents of the New Borrower, together with all amendments thereto, and
certificates of good standing or existence for the New Borrower issued as of a recent date by its state of organization and each other state where such entity, by the nature of its business, is required to qualify or register; 

  
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 (vii) Borrower shall have delivered to Lender new Title Insurance Policies, or
updates to existing Title Insurance Policies, in either case, in form and substance satisfactory to Lender with respect to such New Borrower and the related Transfer of the applicable Property(ies); 

(viii) Borrower, New Borrower and Guarantor shall have executed and/or delivered such additional Loan Documents, amendments to
Loan Documents, amendments to the SHLD Master Lease and any other Lease or Material Agreement, organizational documents, certificates, evidence of authority, lien searches and other documentation as Lender shall reasonably request and in form and
substance reasonably acceptable to the Lender (and following a Securitization of the Loan, acceptable to the Rating Agencies); and 

(ix) Borrower shall have reimbursed Lender for its reasonable out-of-pocket costs and expenses incurred in connection with such
Transfer (including any costs required for review of such Transfer by the Rating Agencies). 
 Section 9.31 Joint and Several
Liability; Waivers. 
 (a) The representations, covenants, warranties and obligations of Borrower hereunder are joint and several. In the
event of (a) any payment by any one or more of the Borrowers of any amount in excess of its respective Proportional Amount, or (b) the foreclosure of, or the delivery of deeds in lieu of foreclosure relating to, any of the Collateral or JV
Collateral owned by one or more of the Borrowers or one or more JV Pledgors (each, an “Obligor” and collectively, the “Obligors”), each Obligor (the “Overpaying Obligor”) that has paid more than its
Proportional Amount or whose Collateral or assets have been utilized to satisfy obligations under the Loan or otherwise for the benefit of one or more other Obligors shall be entitled, after payment in full of the Notes and the satisfaction of all
the other obligations of the Obligors to the Lender under the Loan Documents, to contribution from each of the benefited Obligors (i.e., the Obligors, other than the Overpaying Obligor, who have paid less than their respective Proportional Amount or
whose Collateral or JV Collateral or assets have not been so utilized to satisfy obligations under the Loan) for the amounts so paid, advanced or benefited, up to such benefited Obligor’s then current Proportional Amount. Such right to
contribution shall be subordinate in all respects to the Loan. As used herein, the “Proportional Amount” with respect to any Obligor shall equal the amount derived as follows: (a) the ratio of the value of the Collateral or JV
Collateral, as applicable, in which such Obligor has an interest to the then aggregate value of all Collateral and JV Collateral; times (b) the aggregate amount of the Indebtedness under the Loan Documents. 

(b) Without limiting any of the other waivers and provisions set forth in the Loan Documents, Borrower hereby irrevocably and unconditionally
waives, to the extent permitted by law, all rights and defenses that Borrower may have because the Indebtedness is secured in whole or in part by real property, including any rights or defenses that Borrower may have or be entitled to assert based
on or arising out of any one or more of California Code of 

  
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Civil Procedure Sections 580a, 580b, 580d or 726 or California Civil Code Section 2848. This means, among other things that: 

(i) Borrower hereby agrees that during the continuation of an Event of Default, Lender may elect to foreclose either judicially
or non-judicially against any real or personal property collateral or security it holds for all or any part of the Indebtedness or the other Obligations, or accept an assignment of any such collateral or
security in-lieu of foreclosure, or compromise or adjust any part of such obligations, or make any other accommodation with Borrower, or exercise any other remedy against Borrower or any collateral or
security. No such action by Lender will release or limit the liability of Borrower to Lender, who shall remain liable under the Loan Documents after any such action, even if the effect of any such action is to deprive Borrower of the right to
collect reimbursement from any other Person (including any other Borrower) for any sums paid to Lender or of its rights of subrogation, contribution or indemnity against any other Person (including any other Borrower). 

(ii) Without limiting the foregoing, Borrower hereby waives, to the extent permitted by law, all rights and defenses arising
out of an election of remedies by Lender, even though such an election of remedies, such as nonjudicial foreclosure with respect to security for any of the Indebtedness or the other Obligations, has impaired or destroyed any right or ability that
Borrower may have to seek reimbursement, contribution, or indemnification for any amounts paid by Borrower under the Loan Documents, by the operation of Section 580d of the California Code of Civil Procedure. Borrower further understands and
acknowledges that in the absence of this waiver such potential impairment or destruction of Borrower’s rights, if any, may entitle Borrower to assert a defense to the Loan Documents based on California Code of Civil Procedure Section 580d
as interpreted in Union Bank v. Gradsky, 265 Cal. App. 2d 40, 71 Cal. Rptr. 64 (1968), on the grounds, among others, that Lender should be estopped from pursuing Borrower because Lender’s election to foreclose may have impaired or destroyed
such subrogation, reimbursement, contribution, or indemnification rights of Borrower. By execution of the Loan Documents, Borrower hereby intentionally, freely, irrevocably, and unconditionally waives and relinquishes, to the extent permitted by
law, any such defense and agrees that (i) Borrower will be liable under the Loan Documents even though Lender has foreclosed judicially or non-judicially against any real or personal property collateral
or security for Borrower’s obligations, (ii) Borrower will not assert any such defense in any action or proceeding that Lender may begin to enforce the Loan Documents and (iii) Borrower shall in no event be deemed to have any right,
title, interest or claim under any circumstance in or to any real or personal property held by Lender or any third party following any foreclosure or assignment-in-lieu
thereof of any such collateral or security. 
 (iii) Borrower hereby intentionally, freely, irrevocably and unconditionally
waives and relinquishes, to the extent permitted by law, all rights that may be available to Borrower under any provision of California law or under any California judicial decision, including Sections 580a and 726(b) of the California Code of Civil
Procedure, to limit the amount of any deficiency judgment or other judgment that may be obtained against Borrower under the Loan Documents to not more than the amount by which all unpaid Indebtedness and other Obligations due from Borrower under the
Loan Documents, exceeds the fair market value or fair value of any real or personal property securing such obligations and any other Indebtedness due from Borrower under the Loan Documents, 

  
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including all rights to an appraisement of, judicial or other hearing on, or other determination of the value of such property. Borrower understands and agrees that, as a result of the waiver of
the foregoing rights, privileges, benefits and defenses, and without limiting the effect of the foregoing waiver, (i) Lender may have the ability to pursue Borrower for a judgment on the Indebtedness and the other Obligations without having
first foreclosed on the real or personal property collateral or security for all or any part of the Indebtedness or the other Obligations, (ii) Lender may have the ability to sue Borrower for a deficiency judgment on the Indebtedness or the
other Obligations after a non-judicial foreclosure sale or, regardless of any election of remedies by Lender, if the Indebtedness or any other Obligations of Borrower to Lender under the Loan Documents is
considered to have been provided by a vendor to a buyer and to evidence part of the purchase price for the real or personal property collateral or security and (iii) Lender may be entitled to recover from Borrower an amount that, when combined
with the value of any real or personal property foreclosed upon by Lender (or the proceeds of the sale of which have been received by Lender) and any sums collected by Lender from Borrower or other Person, might exceed the amount of the Indebtedness
and the other Obligations due from Borrower under the Loan Documents. 
 (c) The foregoing provisions of Section 9.30(b) shall
apply only to the extent California law is deemed to apply notwithstanding the choice of law set forth herein. Notwithstanding the foregoing, nothing contained in Section 9.30(b) shall in any way be deemed to imply that California law or
any other state’s law other than New York shall govern this Agreement or any of the other Loan Documents in any respect, except as may be expressly set forth therein, including with respect to the exercise of Lender’s remedies under the
Loan Documents. 

  
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 Lender, Borrower and JV Pledgor are executing this Agreement as of the date first above written.

  

			
	LENDER:
	
	JPMORGAN CHASE BANK,
	NATIONAL ASSOCIATION
		
	By:		 /s/ Jennifer Lewin

	Name:		Jennifer Lewin
	Title:		Vice President
	
	H/2 SO III FUNDING I LLC
		
	By:		 /s/ Daniel Ottensoser

	Name:		Daniel Ottensoser
	Title:		Authorized Signatory
		
	By:		 /s/ Ben Doramus

	Name:		Ben Doramus
	Title:		Authorized Signatory
	
	BORROWER:
	
	SERITAGE SRC FINANCE LLC
		
	By:		 /s/ Benjamin Schall

	Name:		Benjamin Schall
	Title:		President
	
	SERITAGE KMT FINANCE LLC
		
	By:		 /s/ Benjamin Schall

	Name:		Benjamin Schall
	Title:		President
	
	JV PLEDGOR:
	
	SERITAGE GS HOLDINGS LLC
		
	By:		 /s/ Benjamin Schall

	Name:		Benjamin Schall
	Title:		President

  
 S-1 

 
			
	SERITAGE SPS HOLDINGS LLC
		
	By:		 /s/ Benjamin Schall

	Name:		Benjamin Schall
	Title:		President
	
	SERITAGE MS HOLDINGS LLC
		
	By:		 /s/ Benjamin Schall

	Name:		Benjamin Schall
	Title:		President

  
 S-2

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