Document:

srg-ex107_606.htm

 

Exhibit 10.7

SECOND AMENDMENT TO LOAN AGREEMENT

THIS SECOND AMENDMENT TO LOAN AGREEMENT (this “Amendment”) is made as of the 8th day of November, 2016 (the “Amendment Date”), by and among:

	
(A)
	
Wells Fargo Bank, National Association (“Wells Fargo”), not individually but solely in its capacity as: (i) trustee (the “Trustee”) for the holders of J.P. Morgan Chase Commercial Mortgage Securities Trust 2015-SGP, Commercial Mortgage Pass-Through Certificates, Series 2015-SGP (as successor-in-interest to JPMorgan Chase Bank, National Association, a national banking association (“JPM”), in its capacity as an originating lender); and (ii) collateral agent (the “Collateral Agent”) for JPM and H/2 SO III Funding I LLC, a Delaware limited liability company (“H/2 SO III”, and collectively with JPM, “Original Lender”), as co-lenders pursuant to the Co-Lender Agreement dated as of July 7, 2015 (Wells Fargo, together with its successors and assigns, including any party that acquires the Property by foreclosure, conveyance in lieu of foreclosure or similar transaction and any subsequent owner of the Property, "Lender"); 

	
(B)
	
SERITAGE SRC FINANCE LLC and SERITAGE KMT FINANCE LLC, each a Delaware limited liability company (individually and/or collectively, as the context may require, “Borrower”);

	
(C)
	
SERITAGE GS HOLDINGS LLC, SERITAGE SPS HOLDINGS LLC and SERITAGE MS HOLDINGS LLC, each a Delaware limited liability company (individually and/or collectively, as the context may require, “JV Pledgor”); and

	
(D)
	
Seritage Growth Properties, a Maryland real estate investment trust, and Seritage Growth Properties, L.P., a Delaware limited partnership (individually and/or collectively, as the context may require, the “Guarantor”).

RECITALS:

WHEREAS, on July 7, 2015 (the “Closing Date”) Original Lender made a loan to Borrower in the maximum principal amount of $1,025,000,000 (the “Loan”), which Loan is evidenced by, inter alia: (i) the A-1 Note (as defined in the Loan Agreement) in the original principal amount of $925,000,000; (ii) the A-2-1 Note (as defined in the Loan Agreement) in the original principal amount of $50,000,000; (iii) the A-2-2 Note (as defined in the Loan Agreement) in the original principal amount of $50,000,000; and (iv) that certain Loan Agreement (the “Original Loan Agreement”), dated as of the Closing Date, by and among Borrower, JV Pledgor and Original Lender, as amended by that certain Omnibus Amendment, dated as of September 28, 2015, by and among JPM, H/2 SO III, Borrower, JV Pledgor and Guarantor (the “Omnibus Amendment”; and together with the Original Loan Agreement, as the same may be further amended, replaced or otherwise modified from time to time, collectively, the “Loan Agreement”); 

WHEREAS, in connection with the origination of the Loan, (i) Guarantor executed and delivered that certain Guaranty, dated as of the Closing Date, as amended by the Omnibus Amendment (as the same may be further amended, replaced or otherwise modified from time to time, collectively, the “Guaranty”), (ii) Borrower and Guarantor executed and delivered that certain environmental indemnity agreement, dated as of the Closing Date (as the same may be amended, replaced or otherwise modified from time to time, the “Environmental Indemnity”), and (iii) Guarantor executed and delivered that certain completion guaranty, dated as of the Closing Date (as the same may be amended, replaced or otherwise modified from time to time, the “Completion Guaranty”);

WHEREAS, (i) the A-1 Note and the Loan were subsequently transferred to J.P. Morgan Chase Commercial Mortgage Securities Corp. (the “Depositor”) and included in the J.P. Morgan Chase Commercial Mortgage Securities Trust 2015-SGP (the “Trust”), Commercial Mortgage Pass-Through Certificates, Series 2015-SGP transaction (the “Securitization”); (ii) the A-2-1 Note was retained by JPM; and (iii) the A-2-2 Note was retained by H/2 SO III;

WHEREAS, (i) Strategic Asset Services LLC (“SAS”) has been appointed as primary servicer (in such capacity, the “Primary Servicer”) with respect to each of the Loan and the Mezzanine Loan (as defined in the Loan Agreement); (ii) SAS has been appointed as special servicer of the Loan (in such capacity, the “Mortgage Special Servicer”); and (iii) Berkadia Commercial Mortgage LLC (“Berkadia”) has been appointed as the master servicer of the Loan and the Mezzanine Loan (in such capacities, the “Master Servicer”) and as the special servicer of the Mezzanine Loan (in such capacity, the “Mezzanine Special Servicer”); and

WHEREAS, Borrower, JV Pledgor and Lender hereby agree to amend the Loan Agreement on the terms set forth herein.  All capitalized terms used but not defined herein have the meanings ascribed to them in the Loan Agreement. 

 

22660855.16.BUSINESS 

 

NOW, THEREFORE, in consideration of the mutual covenants and agreements herein contained, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows:

ARTICLE I.

AMENDMENTS TO LOAN AGREEMENT

1.1. Amendments to Definitions. 

(a) The definition of “Cash Flow Sweep Trigger Event” set forth in the Loan Agreement is hereby amended by inserting at the end of clause (ii) of such definition the following provision: “or (c) no such Cash Flow Sweep Trigger Event shall be deemed to have occurred if (x) Borrower shall have delivered to Lender the Lump Sum Redevelopment Deposit as and when required pursuant to Section 3.11(a)(ii) and (y) Borrower makes all of the Monthly Redevelopment Reserve Deposits as and when required pursuant to Section 3.11(a)(ii);”.

(b) The definition of “Liquidity” set forth in the Loan Agreement is hereby amended by deleting the phrase “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” that appears therein and replacing it with the phrase “provided that (a) Liquidity shall include any cash and cash equivalents on deposit in the Cash Flow Sweep Reserve Account and in the Redevelopment Project Reserve Account, in each case, 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”.

(c) The definition of “Spread Maintenance Expiration Date” set forth in the Loan Agreement is hereby amended by deleting each reference to “January 9, 2018” that appears therein and replacing each such reference with “March 9, 2018”.

(d) The definition of “Spread Maintenance Premium” set forth in the Loan Agreement is hereby amended by inserting at the end thereof the following provision: “; and provided further, that, notwithstanding anything in this Agreement or any other Loan Document to the contrary, the amount of Spread Maintenance Premium calculated pursuant to this definition shall be adjusted so that the Spread Maintenance Premium calculated for the period of time from February 9, 2018 through March 9, 2018 shall be an amount equal to $1,000,000 multiplied by (A) a fraction equal to the principal balance of the Loan being repaid divided by an amount equal to the principal balance of the Loan being repaid plus the principal amount of the Mezzanine Loan being repaid with the result further multiplied by (B) a fraction equal to the amount of the Loan being repaid divided by the outstanding principal balance of the Loan immediately prior to such repayment.”  

(e) A new definition of “Amendment Date” is hereby added to the “Definitions” section of the Loan Agreement in alphabetical order, as follows: “Amendment Date” shall mean November 8, 2016.

1.2. Amendment to Section 3.11(a).  Section 3.11(a) of the Loan Agreement is hereby amended by deleting it in its entirety and replacing it with the following:

“(a) (i) 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, except with respect to any amounts deposited into the Redevelopment Project Reserve Account pursuant to Section 3.11(a)(ii) below and provided no Event of Default shall have occurred and be continuing, 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 the undrawn balance of the Future Advance Amount (to the extent not previously designated for use 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) shall 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.

(ii) On or prior to the Amendment Date Borrower shall have deposited into the Redevelopment Project Reserve Account an amount equal to $30,000,000 (the “Lump Sum Redevelopment Deposit”).  Commencing on and including the 

2

 

Payment Date occurring in December 2016 and on each Payment Date thereafter for so long as Third Party In-Place NOI as of the most recently ended Test Period does not exceed the Third Party In-Place NOI Threshold, Borrower shall deposit into the Redevelopment Project Reserve Account an amount equal to $3,300,000 (the “Monthly Redevelopment Reserve Deposit”); provided; however that the Monthly Redevelopment Reserve Deposits will not be required at any time (x) during which a Cash Flow Sweep Period (other than a Cash Flow Sweep Period caused by a Cash Flow Sweep Trigger Event pursuant to clause (ii) of the definition thereof) is in effect or (y) the SHLD EBITDAR Rent Ratio is equal to or greater than 1.50(x).”   

1.3. Amendment to Section 5.22(a).  Section 5.22(a) of the Loan Agreement is hereby amended by adding the following sentences to the end of such clause (a):

“From and after the Amendment Date and for so long as there are undrawn amounts of the Future Advance Amount (to the extent not previously designated by Borrower to fund a specific Redevelopment Project), all new Redevelopment Plans and Budgets submitted by Borrower to Lender shall provide that the source of funding of such Redevelopment Projects shall be the Future Advance Amount and the costs shall be funded from the Future Advance Amount for so long as such amounts are available and subject to the satisfaction of all conditions for the advance of such funds (it being understood that with respect to any Redevelopment Project that has been approved by Lender and the conditions set forth in Section 5.22(b) have been satisfied, if the conditions of Section 5.22(c)(ii) or (vi) are not satisfied despite Borrower’s good faith efforts to satisfy such conditions or such conditions are waived by Lender, then Borrower shall be permitted to pay the costs related to such Redevelopment Project with unrestricted cash; provided that in such circumstances Borrower shall diligently pursue the satisfaction of such conditions and cause Property Owner to request a draw of the Future Advance Amount promptly following satisfaction of such conditions).  Notwithstanding anything in this clause (a) to the contrary, with respect to the first $80,000,000 of new Redevelopment Plans and Budgets submitted to Lender from and after the Amendment Date, all references to $5,000,000 in this clause (a) shall mean $15,000,000 and all references to $7,500,000 in this clause (a) shall mean $15,000,000, in each case, for the purposes of Section 5.22(a) only, and shall not modify the definition of “Major Redevelopment Project” or the amounts referenced therein with respect to any other provision of the Loan Documents.”  

1.4. Change of Notice Address.  Effective as of the date hereof, by its signature below each of Borrower, JV Pledgor and Guarantor hereby provides notice of a change of its address as follows for all purposes of the Loan Documents:  

“If to Borrower, JV Pledgor or Guarantor:

 

			
	
c/o Seritage Growth Properties, L.P.

	
489 Fifth Avenue 18th Floor

	
New York, New York 10017

	
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:

	
 

	
Fried, Frank, Harris, Shriver & Jacobson LLP

	
One New York Plaza

	
New York, New York 10004

	
Attention:
	
 
	
Jonathan L. Mechanic

	
 
	
 
	
jonathan.mechanic@friedfrank.com”

 

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ARTICLE II.

REPRESENTATIONS AND RATIFICATION

2.1. Representations.  Borrower, JV Pledgor and Guarantor each represent and warrant, that this Amendment constitutes a legal, valid and binding obligation of such party, enforceable against such party, in accordance with its terms, subject to bankruptcy, insolvency and other limitations on creditors’ rights generally and to equitable principles.  Borrower, JV Pledgor and Guarantor each represent and warrant that as of the Amendment Date, the execution and delivery by such party of this Amendment and the performance of its respective obligations hereunder: (i) have been duly authorized by all requisite action on the part of such party; (ii) will not violate any provision of any applicable legal requirements, decree, injunction or demand of any court or other governmental authority, any organizational document of such party, or any indenture or agreement or other instrument to which such party is a party or by which such party is bound; (iii) will not be in conflict with, result in a breach of, or constitute (with due notice or lapse of time or both) a default under, or result in the creation or imposition of any lien of any nature whatsoever upon any of the property or assets of such party pursuant to any such indenture or agreement or instrument; (iv) has been duly executed and delivered by such party; (v) except for those obtained or filed on or prior to the Amendment Date, it is not required to obtain any consent, approval or authorization from, or to file any declaration or statement with, any governmental authority or other agency in connection with or as a condition to such party’s execution, delivery or performance of this Amendment; and (vi) this Amendment has been duly executed and delivered.  

2.2. Borrower and JV Pledgor Ratification of Loan Documents.  Borrower and JV Pledgor each hereby: (i) unconditionally ratifies and confirms, renews and reaffirms all of its obligations under the Loan Documents (as defined in the Loan Agreement), as amended hereby; (ii) acknowledges and agrees that such obligations remain in full force and effect, binding on and enforceable against it in accordance with the terms, covenants and conditions of the Loan Documents, without impairment, and remains unconditionally liable to Lender in accordance with the terms, covenants and conditions of the Loan Documents, as amended hereby; (iii) acknowledges and agrees that nothing herein contained shall be construed to impair the security or affect the priority of or otherwise impair the lien of any mortgage or other lien which Lender ever had, now has or may hereafter have on any property of Borrower or JV Pledgor under any of the Loan Documents, nor to impair any rights or powers which Lender or its successors may have for nonperformance of any term of any of the Loan Documents; (iv) ratifies and confirms, renews and reaffirms in all respects and without condition, all of the terms, covenants and conditions set forth in the Loan Documents, as amended hereby; and (v) represents and warrants that all representations and warranties made by such party contained in the Loan Documents are true and correct in all material respects on the Amendment Date and are hereby remade with the same effect as if made on the Amendment 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 heretofore 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 or would result in a Material Adverse Effect or a Property Material Adverse Effect), as evidenced by an Officer’s Certificate.

2.3. Guarantor Ratification of Loan Documents.  Guarantor hereby: (i) agrees to the modification of the Loan as set forth herein; (ii) unconditionally ratifies and confirms, renews and reaffirms all of its obligations under the Guaranty, the Environmental Indemnity, the Completion Guaranty and any other Loan Document to which it is a party; (iii) acknowledges and agrees that such obligations remain in full force and effect, binding on and enforceable against Guarantor in accordance with the terms, covenants and conditions of the Guaranty, the Environmental Indemnity, the Completion Guaranty and such Loan Documents, without impairment, and remain unconditionally liable to Lender in accordance with the terms, covenants and conditions of the Guaranty, the Environmental Indemnity, the Completion Guaranty and such Loan Documents; (iv) acknowledges and agrees that nothing herein contained shall be construed to impair the security or affect the priority of or otherwise impair the lien of any mortgage or other lien which Lender ever had, now has or may hereafter have on any property of Guarantor, Borrower and JV Pledgor under any of the Loan Documents, nor to impair any rights or powers which Lender or its successors may have for nonperformance of any term of any of the Loan Documents; (v) ratifies and confirms, renews and reaffirms in all respects and without condition, all of the terms, covenants and conditions set forth in the Guaranty, the Environmental Indemnity, the Completion Guaranty and any other Loan Document to which it is a party; (vi) represents, warrants and agrees that, as of the Amendment Date, it has no defenses, set-offs, rights of recoupment, claims or counterclaims of any nature with respect to its obligations under the Guaranty, the Environmental Indemnity, the Completion Guaranty or any other Loan Document to which it is a party or the enforcement thereof; and (vii) represents and warrants that all representations and warranties made by Guarantor contained in the Guaranty, the Environmental Indemnity, the Completion Guaranty and any other Loan Document to which it is a party are true and correct in all material respects on the Amendment Date and are hereby remade with the same effect as if made on the Amendment 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 heretofore 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 or would result in a Material Adverse Effect or a Property Material Adverse Effect), as evidenced by an Officer’s Certificate.

4

 

ARTICLE III.

WAIVERS AND RELEASES

3.1. Consideration.  Borrower, JV Pledgor and Guarantor each hereby acknowledges and agrees that: (i) it has received good and valuable consideration for its agreement to the terms and provisions of this Amendment; (ii) its agreement to such terms and provisions is a material condition and inducement to Lender’s willingness to enter into this Amendment; (iii) Lender has relied upon the agreement of each of Borrower, JV Pledgor and Guarantor to such terms and provisions in entering into this Amendment and Lender would not have entered into this Amendment without the agreement of Borrower, JV Pledgor and Guarantor to the terms and provisions of this Amendment, and Article III of this Amendment in particular; and (iv) it has been represented by competent counsel of its own choosing in the negotiation of this Amendment and Article III of this Amendment in particular, and it has discussed these provisions with counsel and hereby knowingly and willingly waives its rights as described in this Article III of this Amendment.  This Amendment may be introduced as evidence in any judicial or other proceeding, without further authentication or foundation, and shall constitute prima facie evidence of the facts and agreements set forth herein.

3.2. No Defaults; Defenses, Counterclaims or Offsets.  Each of Borrower, JV Pledgor and Guarantor acknowledge, agree, represent and warrant as to itself that, as of the Amendment Date, after giving effect to the modification of the Loan as contemplated hereby, no Event of Default has occurred and is continuing under any of the Loan Documents.  Borrower, JV Pledgor and Guarantor, each for itself and its respective successors and assigns, and by its execution hereof each: (i) hereby acknowledges, admits and agrees that, as of the Amendment Date, there are no objections, claims, defenses, counterclaims or offsets relating to its obligations under or in respect of the Loan, the Loan Documents or to the enforcement or exercise by Lender of any of its rights, powers or remedies under or in respect of the Loan Documents, at law or in equity; (ii) hereby irrevocably waives, relinquishes and releases any and all such objections, claims, defenses, counterclaims or offsets that may now exist, including without limitation, any and all such objections, claims, defenses, counterclaims or offsets whether known or unknown, foreseeable or unforeseeable; and (iii) hereby irrevocably further waives and renounces, to the fullest extent permitted by law, all rights to the benefits of any moratorium, reinstatement, marshaling, forbearance, valuation, stay, extension, redemption, appraisement, exemption and homestead now or hereafter provided by the Constitution and laws of the United States of America and of each state thereof, both as to itself and in and to all of its property, real and personal, against the enforcement and collection of the obligations evidenced by the Notes or the other Loan Documents; provided, that, notwithstanding anything to the contrary, any representations, acknowledgments, agreements, releases, waivers or otherwise contained in this Section 3.2 apply solely to periods of time and events that have occurred on or prior to the Amendment Date, the intent of the parties not being to waive or release any of Borrower’s, JV Pledgor’s or Guarantor’s rights with respect to events or occurrences after the Amendment Date.

3.3. Releases.  Borrower, JV Pledgor and Guarantor each on behalf of itself and its respective successors and assigns (collectively, the “Borrower Releasing Parties”) each hereby irrevocably releases, and forever discharges each Exculpated Party from any and all manner of controversies, liabilities, expenses, damages, judgments, actions, claims, demands and causes of action of any nature whatsoever, whether at law or in equity, whether known or unknown, which any of Borrower Releasing Parties now have by reason of any matter, cause or thing, from the beginning of the world to and including the Amendment Date arising out of or relating to any Exculpated Matter; provided, that, notwithstanding anything to the contrary, any representations, acknowledgments, agreements, releases, waivers or otherwise contained in this Section 3.3 apply solely to periods of time and events that have occurred on or prior to the Amendment Date, the intent of the parties not being to waive or release any of Borrower’s, JV Pledgor’s or Guarantor’s rights with respect to events or occurrences after the Amendment Date.  As used herein, “Exculpated Matter” means: (i) the interpretation, calculation, application and/or timing of the provisions of the Loan Documents related to any Cash Flow Sweep Cure Collateral, any Cash Flow Sweep Period and any Cash Flow Sweep Trigger Event (collectively, the “Cash Flow Sweep Definitions”), and, solely as they relate to the Cash Flow Sweep Definitions, In-Place NOI, Operating Expenses, Operating Income, SHLD EBITDAR, SHLD EBITDAR Rent Ratio, any Test Period, Third Party In-Place NOI and/or the Third Party In-Place NOI Threshold, and in each case, solely as they relate to the Cash Flow Sweep Definitions, any definitions or provisions of the Loan Documents referred to therein or upon which the interpretation, calculation, application and/or timing of any of the foregoing rely; (ii) the granting of any extension or waiver of the applicability or timing with respect to the determination of any of the provisions described in clause (i) of this definition; and (iii) any matter with respect to any pre-negotiation agreement between SAS, Borrower and the other parties thereto in connection with the foregoing.  As used herein, “Exculpated Party” means each of the following: (i) each Original Lender; (ii) the Trustee; (iii) the Collateral Agent; (iv) the Trust; (v) the Primary Servicer; (vi) the Master Servicer; (vii) the Mortgage Special Servicer; (viii) the Mezzanine Special Servicer; (ix) the Depositor; (x) each other Lender (including holders and beneficial owners of certificates issued in connection with the Securitization); and (xi) all Related Parties of the foregoing.  As used herein, “Related Parties” shall mean with respect to any Person, such Person’s affiliates, and such Person’s and such Person’s affiliates partners, officers, directors, employees, agents, attorneys, servicers, subservicers, primary servicers, special servicers, contractors, representatives, participants, successors, assigns, subsidiaries, equity owners and predecessors-in-interest.

5

 

ARTICLE IV.

MISCELLANEOUS

4.1. Severability.  In case any provision of this Amendment shall be invalid, illegal, or unenforceable, such provision shall be deemed to have been modified to the extent necessary to make it valid, legal, and enforceable, provided that any such modification does not prevent the practical realization of the principal benefits intended by this Amendment.  In the event of such modification, the validity, legality, and enforceability of the remaining provisions shall not in any way be affected or impaired thereby.

4.2. No Modification Except in Writing.  None of the terms of this Amendment may be waived, altered, terminated or amended except by an instrument in writing duly executed by Borrower, JV Pledgor, Guarantor and Lender.

4.3. Further Assurances.  This Amendment shall be subject to Section 5.9 of the Loan Agreement.

4.4. Governing Law.  This Amendment shall be governed by, and construed in accordance with, the laws of the State of New York applicable to contracts made and performed in such state (without regard to principles of conflicts of laws).  Borrower hereby waives any claim to assert that the law of any other jurisdiction governs this Amendment, and this Amendment shall be governed by and construed in accordance with the laws of the State of New York pursuant to Section 5-1401 of the New York General Obligations Law.

4.5. Joint and Several Liability. If Borrower, JV Pledgor or Guarantor consists of more than one person or party, the obligations and liabilities of each such person or party hereunder shall be joint and several.

4.6. Costs and Expenses. Borrower and JV Pledgor shall pay all of Lender’s reasonable out-of-pocket costs and expenses (including reasonable attorneys’ fees (which shall include, without limitation, such attorneys’ fees incurred by any servicer (including without limitation the Primary Servicer) and/or by or on behalf of the Trust)) incurred in connection with this Amendment.

4.7. Miscellaneous.

(a) The captions and Section headings in this Amendment are for convenience only and are not intended to define, alter, limit or enlarge in any way the scope or meaning of this Amendment or any term or provision set forth in this Amendment.

(b) The Recitals set forth at the beginning of this Amendment are incorporated in and made a part of this Amendment by this reference.

(c) Each reference in this Amendment to any gender shall be deemed also to include any other gender, and the use in this Amendment of the singular shall be deemed also to include the plural and vice versa, unless the context requires otherwise.

(d) This Amendment is, and shall be deemed to be, the product of joint drafting by the parties hereto and shall not be construed against any of them as the drafter hereof.

(e) This Amendment, together with the Loan Documents, constitute the entire agreement among the parties relating to the subject matter hereof.  To the extent this Amendment conflicts with any of the other Loan Documents, this Amendment shall control.

(f) This Amendment shall inure to the benefit of and be binding upon the parties and their respective heirs, successors and assigns.

(g) This Amendment may be executed in any number of counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.  This Amendment will not be binding on or constitute evidence of a contract between the parties until such time as a counterpart of this document has been executed by each party and a copy thereof is delivered to each party to this Amendment.

4.8. Mezzanine Lender Consent. Wells Fargo Bank, National Association, not individually but solely in its capacity as trustee for the holders of J.P. Morgan Chase Commercial Mortgage Securities Trust 2015-SGP MZ, Commercial Mezzanine Pass-Through Certificates, Series 2015-SGP MZ (together with its successors and assigns, “Mezzanine Lender”) hereby executes this Amendment in order to consent to this Amendment and agrees that the Lender shall be entitled to rely upon the consent contained herein as satisfying any notice and consent obligations contained under the Intercreditor Agreement between the Lender and the Mezzanine Lender.

6

 

4.9. Conditions Precedent to the Effectiveness of this Amendment.  The parties hereto acknowledge and agree that this Amendment shall have no force or effect until Lender has received the Lump Sum Redevelopment Deposit, executed counterparts of this Amendment from each party hereto, and Borrower has paid Lender’s reasonable, out-of-pocket attorneys’ fees incurred in connection herewith (which shall include, without limitation, such attorneys’ fees incurred by any servicer (including without limitation the Primary Servicer) and/or by or on behalf of the Trust).

[Signatures appear on following pages]

 

 

 

7

 

IN WITNESS WHEREOF, the parties have hereunto executed this Amendment as of the date first written above.

 

			
	
BORROWER:

	
 

	
SERITAGE SRC FINANCE LLC, 

a Delaware limited liability company

	
 
	
 
	
 

	
By:
	
 
	
 

	
 
	
 
	
Name:

	
 
	
 
	
Title:

	
 
	
 
	
 

	
SERITAGE KMT FINANCE LLC, 

a Delaware limited liability company

	
 
	
 
	
 

	
By:
	
 
	
 

	
 
	
 
	
Name:

	
 
	
 
	
Title:

 

 

22660855.16.BUSINESS 

 

 

			
	
JV PLEDGOR:

	
 

	
SERITAGE GS HOLDINGS LLC,

a Delaware limited liability company

	
 
	
 
	
 

	
By:
	
 
	
 

	
 
	
 
	
Name:

	
 
	
 
	
Title:

	
 
	
 
	
 

	
SERITAGE SPS HOLDINGS LLC,

a Delaware limited liability company

	
 
	
 
	
 

	
By:
	
 
	
 

	
 
	
 
	
Name:

	
 
	
 
	
Title:

	
 
	
 
	
 

	
SERITAGE MS HOLDINGS LLC,

a Delaware limited liability company

	
 
	
 
	
 

	
By:
	
 
	
 

	
 
	
 
	
Name:

	
 
	
 
	
Title:

 

 

 

 

					
	
GUARANTOR:

	
 

	
Seritage Growth Properties,

a Maryland real estate investment trust

	
 
	
 
	
 

	
By:
	
 
	
 

	
 
	
 
	
Name:

	
 
	
 
	
Title:

	
 
	
 
	
 

	
Seritage Growth Properties, L.P.,

a Delaware limited partnership

	
 
	
 
	
 

	
By:
	
 
	
Seritage Growth Properties,

	
 
	
 
	
its general partner

	
 
	
 
	
 

	
 
	
 
	
By:
	
 
	
 

	
 
	
 
	
 
	
 
	
Name:

	
 
	
 
	
 
	
 
	
Title:

 

 

 

 

					
	
LENDER:

	
 

	
wells fargo bank, national association, not individually but solely in its capacity as trustee for the holders of J.P. Morgan Chase Commercial Mortgage Securities Trust 2015-SGP, Commercial Mortgage Pass-Through Certificates, Series

2015-SGP

	
 
	
 
	
 

	
By:
	
 
	
Strategic Asset Services LLC,

	
 
	
 
	
in its capacity as Primary Servicer

	
 
	
 
	
 

	
 
	
 
	
By:
	
 
	
 

	
 
	
 
	
 
	
 
	
Name:

	
 
	
 
	
 
	
 
	
Title:

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
By:
	
 
	
 

	
 
	
 
	
 
	
 
	
Name:

	
 
	
 
	
 
	
 
	
Title:

 

 

 

 

	
	
ACKNOWLEDGED AND AGREED:

	
 

	
MEZZANINE BORROWERS:

	
 

	
SERITAGE SRC MEZZANINE FINANCE LLC,

a Delaware limited liability company

 

			
	
By:
	
 
	
 

	
 
	
 
	
Name:

	
 
	
 
	
Title:

 

	
	
SERITAGE KMT MEZZANINE FINANCE LLC,

a Delaware limited liability company

 

			
	
By:
	
 
	
 

	
 
	
 
	
Name:

	
 
	
 
	
Title:

 

	
	
ACKNOWLEDGED AND AGREED, as a party to, and

as Guarantor (as defined in the Mezzanine Loan Agreement)

under and with respect to, any Mezzanine Loan Document:

	
 

	
SERITAGE GROWTH PROPERTIES,

a Maryland real estate investment trust

 

			
	
By:
	
 
	
 

	
 
	
 
	
Name:

	
 
	
 
	
Title:

 

	
	
SERITAGE GROWTH PROPERTIES, L.P.,

a Delaware limited partnership

 

					
	
By:
	
 
	
Seritage Growth Properties,

	
 
	
 
	
its general partner

	
 
	
 
	
 

	
 
	
 
	
By:
	
 
	
 

	
 
	
 
	
 
	
 
	
Name:

	
 
	
 
	
 
	
 
	
Title:

 

 

 

 

	
	
ACKNOWLEDGED AND AGREED:

	
 

	
MEZZANINE LENDER:

	
 

	
wells fargo bank, national association,

NOT INDIVIDUALLY BUT SOLELY IN ITS

CAPACITY as trustee for the holders of

J.P. Morgan Chase Commercial

Mortgage Securities Trust 2015-SGP MZ,

Commercial Mezzanine Pass-Through

Certificates, Series 2015-SGP MZ

 

					
	
By:
	
 
	
Strategic Asset Services LLC,

	
 
	
 
	
in its capacity as Primary Servicer

	
 
	
 
	
 

	
 
	
 
	
By:
	
 
	
 

	
 
	
 
	
 
	
 
	
Name:

	
 
	
 
	
 
	
 
	
Title:

	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
By:
	
 
	
 

	
 
	
 
	
 
	
 
	
Name:

	
 
	
 
	
 
	
 
	
Title:srg-ex109_605.htm

 

Exhibit 10.9

Execution Version

OMNIBUS AMENDMENT

(Mezzanine Loan)

THIS OMNIBUS AMENDMENT (this “Amendment”) is entered into as of September 28, 2015 by and among H/2 Special Opportunities III Corp., H/2 Credit Partners Master Fund Ltd., H/2 Investors, Ltd., H/2 Investors II, L.P. and H/2 Targeted Return Strategies II Ltd. (together with their respective successors and assigns, individually or collectively, as the context may require “Lender”), Seritage SRC Mezzanine Finance LLC, a Delaware limited liability company (together with its permitted successors and assigns, “SRC Borrower”), and Seritage KMT Mezzanine Finance LLC, a Delaware limited liability company (together with its permitted successors and assigns, “KMT Borrower” and, with SRC Borrower, individually or collectively, as the context may require, “Borrower”) and Seritage Growth Properties, a Maryland real estate investment trust (together with its permitted successors and assigns, “Seritage REIT”), and Seritage Growth Properties, L.P., a Delaware limited partnership (together with its permitted successors and assigns, “Seritage OP” and together with Seritage REIT, collectively, jointly and severally “Guarantor”), and amends (i) that certain Mezzanine Loan Agreement, dated as of July 7, 2015, by and between Lender and Borrower (the “Loan Agreement”) and (ii) that certain Guaranty, dated as of July 7, 2015, by Seritage REIT and Seritage OP for the benefit of Lender (the “Guaranty”).  Capitalized terms used herein and not otherwise defined shall have the meanings given such terms in the Loan Agreement.

WHEREAS, the parties hereto desire to amend the Loan Agreement and the Guaranty in the manner hereinafter set forth.

NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto agree as follows, effective from and after the date hereof:

1. Definitions.  

a. The following definitions in the Loan Agreement are hereby amended and restated in their entirety as follows:

“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 and A- or higher from Fitch if rated by Fitch, or (ii) a short term unsecured debt rating of A-2 or higher from S&P and F2 or higher from Fitch if rated by Fitch, and (b) a long term unsecured debt rating of A3 or higher from Moody’s.

“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”, Fitch rating of at least “BBB-” 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.

“JV Profits” means distributions of JV Capital Event Proceeds on any JV Interests in excess of the sum of (i) (a) (1) with respect to the GGP JV, $165,000,000, (2) with respect to the Macerich JV, $150,000,000 and (3) with respect to the Simon JV, $114,000,000 or (b) with respect to any JV Release Property, the Release Price paid by Borrower to obtain release of such JV Release Property plus (ii) in any case, additional invested capital and any applicable preferred return on such JV Interests in accordance with the applicable JV Documents.

“Lands’ End Master Lease” means that certain Master Lease Agreement by and between Sears, Roebuck and Co. as Landlord and Lands’ End, Inc. as Tenant, entered into as of April 4, 2014 and each effective as of February 1, 2014.

1

 

[NEWYORK 3109630_12]

 

“Property Release Threshold” means an amount equal to the difference of (i) $70,858,696.80 minus (ii) any amounts required to be deducted therefrom in accordance with Section 2.1(b)(ii) minus (iii) (x) 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) multiplied by (y) the Loan Pro Rata Share.  

“SHLD EBITDAR” means, with respect to any Test Period and the Properties subject to the SHLD Master Lease, 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 SHLD Master Tenants at the Properties subject to the SHLD Master Lease 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 to the Mortgage Loan Agreement.

“Spread Maintenance Premium” means (i) with respect to any prepayment of the Loan in accordance with the terms of this Agreement or (ii) 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 through which interest has been (or, in connection with such prepayment, will be) paid on such prepayment in accordance with this Agreement through and including the applicable Spread Maintenance Expiration Date; provided that no Spread Maintenance Premium shall be payable with respect to Excluded Prepayments.

b. The following definitions are hereby added to the Loan Agreement:

“Additional Conveyance Parcels” means those certain parcels relating to automotive centers associated with Property #1968 (Palm Desert, CA) and Property #1978 (Reno, NV) and a warehouse associated with Property #1089 (Anchorage, AK), each as more particularly described on Schedule T to the Mortgage Loan Agreement.

“Leased Additional Conveyance Parcel” means that certain parcel relating to an automotive center associated with Property #1968 (Palm Desert, CA), as more particularly described on Schedule T to the Mortgage Loan Agreement.

“Mortgage Loan Allocated Loan Amount” means the “Allocated Loan Amount” as defined in the Mortgage Loan Agreement.

2. Voluntary Prepayment.

a. Section 2.1(a) of the Loan Agreement is hereby amended and restated in its entirety as follows:

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 pursuant to Section 2.1(c) 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 Mortgage 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 unpaid interest that would have accrued on the principal amount of the Loan to be prepaid through and including the last day of the Interest Accrual Period related to the Payment Date next occurring following the date of such prepayment or, if such prepayment occurs on a Payment Date, the amount of interest that would have accrued on the principal amount of the Loan to be prepaid through and including the last day of the Interest Accrual Period related to such Payment Date.  Borrower’s notice of prepayment may be rescinded with one (1) Business Days’ written 

2

 

[NEWYORK 3109630_12]

 

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. Section 2.1(c) of the Loan Agreement is hereby amended and restated in its entirety as follows:

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 Mortgage Borrower of the Mortgage 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 as required by Section 2.1(a), plus the applicable Spread Maintenance Premium.

c. The word “party” in the final sentence of Section 2.1(e) of the Loan Agreement is hereby replaced with the word “part”.

3. Property Releases.  The final sentence of Section 2.2(a)(iv) of the Loan Agreement is hereby amended and restated in its entirety as follows:

Notwithstanding the foregoing, Property Owner may, with respect to any Release Property, deposit a portion of the Net Sales Proceeds thereof in excess of 150% of the sum of the Allocated Loan Amount and the Mortgage Loan 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 and the corresponding sentence in Section 2.2(a)(iv) of the Mortgage Loan Agreement shall not exceed $75,000,000 during the life of the Loan and (2) 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. 

4. New Borrowers.  Section 9.30(c) of the Loan Agreement is hereby amended and restated in its entirety as follows:

(iii) each of Seritage REIT and Seritage OP shall have duly executed and delivered to Lender a reaffirmation of the Guaranty and a reaffirmation of the Completion Guaranty;

5. Additional Conveyances.  The following is hereby added as new Section 5.25 to the Loan Agreement:

Section 5.25.  Additional Conveyances.

(a) Borrower represents and warrants that Property Owner and SHLD have agreed that the failure to convey the Additional Conveyance Parcels to Property Owner of record on the Closing Date was unintentional and each shall use reasonable best efforts to cause the conveyance to be completed expeditiously and in accordance with Section 8.1 (Further Assurances) of the SHLD PSA without additional consideration being required of any party to the SHLD PSA.

(b) Borrower shall, at Borrower’s sole cost and expense, use commercially reasonable efforts to, as promptly as reasonably practicable, (i) cause fee simple or ground leasehold, as applicable, interests in the Additional Conveyance Parcels to be conveyed to Property Owner pursuant to conveyance documentation prepared by Borrower and reasonably acceptable to the Lender, (ii) cause an owner’s policy of title insurance with a mezzanine endorsement in form and substance reasonably acceptable to Lender to be issued and a Survey to be provided with respect to each of the Additional Conveyance Parcels, (iii) provide Lender evidence of insurance satisfying the applicable requirements of the Mortgage Loan Agreement with respect to each of the Additional Conveyance Parcels , (iv) to the extent the Additional Conveyance Parcels were not included in the applicable reports provided to Lender in connection with origination of the Loan, provide Lender property condition reports, Environmental Reports and zoning reports with respect to each of the Additional Conveyance Parcels, in each case consistent with the forms and standards for reports provided to Lender in respect of Properties other than the Additional Conveyance Parcels in connection with origination of the Loan and reasonably acceptable to Lender and (v) execute such mortgages, deeds of trust, mortgage amendments or deed of trust amendments as the Lender may reasonably require in connection therewith, in each case in form and substance reasonably acceptable to the Lender.  This Section 5.25 shall supersede Section 5.9 of this Agreement and similar provisions of the Loan Documents with respect to the matters set forth herein.

(c) Notwithstanding the foregoing, Borrower shall not be required to cause Property Owner to take title to the leasehold interest in the Leased Additional Conveyance Parcel to the extent that, after the use of commercially reasonable efforts, it is unable to obtain the consent of the lessor in respect thereof or to enter into an amendment with such lessor to the lease in respect 

3

 

[NEWYORK 3109630_12]

 

thereof that would permit the Leased Additional Conveyance Parcel to be used and developed by Property Owner consistent with the commercial standards applicable to the other Properties in all material respects.  If, after the use of commercially reasonable efforts, Borrower is unable to obtain the requisite consent and amendment, Borrower shall cause Property Owner to relinquish the right to the Leased Additional Conveyance Parcel to SHLD in exchange for the repayment by SHLD to the Property Owner of the purchase price paid by Property Owner for the Leased Additional Conveyance Parcel in the Transaction; provided, (i) Borrower shall cause Property Owner to cause such payment to be made or immediately deposited into the Redevelopment Project Reserve Account to be held or disbursed in accordance with the terms of this Agreement applicable to funds in the Redevelopment Project Reserve Account, and (ii) the “Base Rent” (as defined in the SHLD Master Lease) shall be decreased by the amount attributable to the Leased Additional Conveyance Parcel. 

(d) Any reasonable out-of-pocket expenses actually incurred by Lender (including reasonable attorneys’ fees and expenses) in connection with Section 5.25(b) shall be paid by Borrower to Lender promptly (and in any event within five Business Days) following demand.

6. Definition of Indemnified Liabilities.  Section 1.2 of the Guaranty is hereby amended and restated in its entirety as follows:

1.2 Definition of Indemnified Liabilities.  As used herein, the term “Indemnified Liabilities” means all obligations and liabilities of Borrower pursuant to Section 9.19(b) and Section 9.19(c) of the Loan Agreement.

7. Virginia Beach Property.  Borrower has become aware that the legal description attached to the deed conveying the Property located in Virginia Beach, Virginia (Sears #1265) (the “Virginia Beach Property”) to Property Owner pursuant to the Approved Separation Transaction, contains the inaccuracies depicted on Exhibit A hereto, and Borrower hereby covenants to deliver, or cause Property Owner to deliver, with respect to the Virginia Beach Property, (i) an amended deed with a corrected legal description, (ii) an updated Survey, and (iii) an updated owner’s Title Insurance Policy in favor of Property Owner.

8. Waiver.  By their signatures below, the Lender hereby waives any Default or Event of Default, if any, arising from the failure of the Borrower to cause Property Owner to obtain title to the Additional Conveyance Parcels on the Closing Date and from the innacuracies in the deed conveying the Virginia Beach Property (as depicted on Exhibit A hereto), including without limitation any Default or Event of Default arising from the breach of a representation or warranty in any Loan Document relating to ownership of the Additional Conveyance Parcels or such inaccuracies.

9. Change of Notice Address.  Effective as of October 1, 2015, by its signature below each of Borrower and Guarantor hereby provide notice of a change in its notice address as follows for all purposes of the Loan Documents: 

If to Borrower:

c/o Seritage Growth Properties, L.P.

489 Fifth Avenue

18th Floor

New York, NY 10017

Attention:     Matthew Fernand

Executive Vice President & General Counsel

mfernand@seritage.com

and

Mary Rottler 

Executive Vice President, Operations and Leasing

mrottler@seritage.com

4

 

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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.

If to Guarantor:

Seritage Growth Properties

c/o Seritage Growth Properties, L.P.

489 Fifth Avenue

18th Floor

New York, NY 10017

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.

10. Governing Law.  This Amendment shall be governed by and construed and interpreted in accordance with the laws of the State of New York.

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[NEWYORK 3109630_12]

 

11. Successors and Assigns.  This Amendment shall be binding upon Guarantor and its successors and assigns, and shall be binding upon and inure to the benefit of Lender and its successors and assigns, including any subsequent holder of all or any portion of the Note. 

12. Miscellaneous.  All of the terms and conditions of the Loan Documents, as modified or waived by this Amendment, are hereby ratified and confirmed in all respects and shall remain in full force and effect in accordance with their terms.  All references to the Loan Agreement and to the Guaranty in any Loan Document shall, from and after the execution and delivery of this Amendment, be deemed a reference to the Loan Agreement and Guaranty as amended hereby and as hereafter amended, modified or extended from time to time. This Amendment 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 constitute one and the same instrument.  Copies of originals, including copies 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 Amendment.

[Signatures appear on following page.]

 

 

 

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[NEWYORK 3109630_12]

 

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed by their duly authorized representatives, all as of the day and year first above written.  

 

	
 
	
 
	
 
	
LENDER:

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
H/2 SPECIAL OPPORTUNITIES III CORP.

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
By:
	
 
	
 

	
 
	
 
	
 
	
Name:
	
 
	
Daniel Ottensoser

	
 
	
 
	
 
	
Title:
	
 
	
Authorized Signatory

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
By:
	
 
	
 

	
 
	
 
	
 
	
Name:
	
 
	
Ben Doramus

	
 
	
 
	
 
	
Title:
	
 
	
Authorized Signatory

[Signatures continue on next page.]

 

 

	
Omnibus Amendment to Mezzanine Loan Documents
	
 
	

 

[NEWYORK 3109630_12]

 

 

	
 
	
 
	
 
	
H/2 CREDIT PARTNERS MASTER FUND LTD.

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
By:
	
 
	
 

	
 
	
 
	
 
	
Name:
	
 
	
Spencer B. Haber

	
 
	
 
	
 
	
Title:
	
 
	
Director

[Signatures continue on next page.]

 

	
Omnibus Amendment to Mezzanine Loan Documents
	
 
	

 

[NEWYORK 3109630_12]

 

 

	
 
	
 
	
 
	
H/2 INVESTORS, LTD.

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
By:
	
 
	
 

	
 
	
 
	
 
	
Name:
	
 
	
Spencer B. Haber

	
 
	
 
	
 
	
Title:
	
 
	
Director

[Signatures continue on next page.]

 

	
Omnibus Amendment to Mezzanine Loan Documents
	
 
	

 

[NEWYORK 3109630_12]

 

 

	
 
	
 
	
 
	
H/2 INVESTORS II, L.P.

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
By:
	
 
	
H/2 Investors II GP LLC, the general partner

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
By:
	
 
	
 

	
 
	
 
	
 
	
Name:
	
 
	
Spencer B. Haber

	
 
	
 
	
 
	
Title:
	
 
	
Managing Member

[Signatures continue on next page.]

 

	
Omnibus Amendment to Mezzanine Loan Documents
	
 
	

 

[NEWYORK 3109630_12]

 

 

	
 
	
 
	
 
	
H/2 TARGETED RETURN STRATEGIES II LTD.

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
By:
	
 
	
 

	
 
	
 
	
 
	
Name:
	
 
	
Spencer B. Haber

	
 
	
 
	
 
	
Title:
	
 
	
Director

[Signatures continue on next page.]

 

	
Omnibus Amendment to Mezzanine Loan Documents
	
 
	

 

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BORROWER:

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
SERITAGE SRC MEZZANINE FINANCE LLC,

	
 
	
 
	
 
	
a Delaware limited liability company

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
By:
	
 
	
 

	
 
	
 
	
 
	
Name:
	
 
	
Benjamin Schall

	
 
	
 
	
 
	
Title:
	
 
	
President

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
SERITAGE KMT MEZZANINE FINANCE LLC,

	
 
	
 
	
 
	
a Delaware limited liability company

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
By:
	
 
	
 

	
 
	
 
	
 
	
Name:
	
 
	
Benjamin Schall

	
 
	
 
	
 
	
Title:
	
 
	
President

[Signatures continue on next page.]

 

	
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GUARANTOR:

 

	
 
	
 
	
 
	
SERITAGE GROWTH PROPERTIES,

	
 
	
 
	
 
	
a Maryland real estate investment trust

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
By:
	
 
	
 

	
 
	
 
	
 
	
Name:
	
 
	
Matthew Fernand

	
 
	
 
	
 
	
Title:
	
 
	
Executive Vice President, General

	
 
	
 
	
 
	
 
	
 
	
Counsel and Secretary

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
SERITAGE GROWTH PROPERTIES, L.P.,

	
 
	
 
	
 
	
a Delaware limited partnership

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
By:
	
 
	
Seritage Growth Properties, its general partner

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
By:
	
 
	
 

	
 
	
 
	
 
	
Name:
	
 
	
Matthew Fernand

	
 
	
 
	
 
	
Title:
	
 
	
Executive Vice President, General

	
 
	
 
	
 
	
 
	
 
	
Counsel and Secretary

 

 

 

	
Omnibus Amendment to Mezzanine Loan Documents
	
 
	

 

[NEWYORK 3109630_12]

 

Exhibit A

Virginia Beach Property Inaccuracies 

 

Exhibit A

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