Document:

srg-ex104_642.htm

 

Exhibit 10.4

SERITAGE GROWTH PROPERTIES

July 7, 2015

Sears Holdings Corporation

3333 Beverly Road

Hoffman Estates, Illinois 60179

Ladies and Gentlemen:

Reference is made to that certain Master Lease of even date herewith (the “Master Lease”) 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”).

The parties hereby acknowledge and agree that the following Schedules which are attached to and described in this letter (“Side Letter”), shall constitute the respective Schedules referred to in the Master Lease, and each of such Schedules is hereby, and for all purposes shall be deemed to have been, incorporated as a part of the Master Lease as if fully set forth therein. Capitalized terms not otherwise defined herein shall have the meaning as set forth in the Master Lease. The respective Schedules are:

	
 
	
1.
	
Schedule 1.7(c): Preliminary Recapture Plans that the parties to the Master Lease have agreed upon.

	
 
	
2.
	
Schedule 1.9: 100% Recapture Property Termination Fees (Fixed Element of Calculation).

	
 
	
3.
	
Schedule 2: Base Rent Adjustment.

	
 
	
4.
	
Schedule 4.5: Installment Expenses.

	
 
	
5.
	
Schedule 10.1 Deferred Maintenance

	
 
	
6.
	
Schedule 20.3 Initial Environmental Remediation

This letter agreement shall be governed by, and construed and enforced in accordance with, the law of the State of New York.

If the above-referenced terms are acceptable to you, please counter execute where provided for below and return the same to the undersigned. The fully executed Side Letter will also serve to supplement the Master Lease to add the information included on the Schedules described herein, and as so supplemented, the Master Lease shall continue in full force and effect on all of its same terms and conditions.  For purposes hereof, transmission by email will be binding as if original.

[signature page follows]

Portions of this document have been redacted pursuant to a Request for Confidential Treatment filed with the Securities and Exchange Commission pursuant to Rule 24b-2 under the Securities Exchange Act of 1934, as amended. Redacted portions are indicated with the notation “[**]”.

 

 

 

 

 

IN WITNESS WHEREOF, this Side Letter has been executed and delivered by the parties set forth above.

 

	
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:
	
 
	
 

(Master Lease Side Letter)

 

 

 

 

 

SCHEDULE 1.7(C)

PRELIMINARY RECAPTURE PLANS

 

	
	
[**]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SCHEDULE 1.9

100% Recapture Property Termination Fees

(Fixed Element of Calculation)

 

	
 
	
Site
	
Type
	
City
	
State
	
As Leased

Market Value
	
Go Dark

Value*
	
Amount in

Section

1.9(a)(iv)(A)

of Master

Lease

	
1
	
1089
	
Sears
	
Anchorage
	
AK
	
[**]

	
2
	
1398
	
Sears
	
San Bernardino
	
CA

	
3
	
1178
	
Sears
	
Santa Monica
	
CA

	
4
	
1608
	
Sears
	
Westminster
	
CA

	
5
	
1063
	
Sears
	
West Hartford
	
CT

	
6
	
1645
	
Sears
	
Boca Raton
	
FL

	
7
	
1655
	
Sears
	
Miami
	
FL

	
8
	
1365
	
Sears
	
Miami
	
FL

	
9
	
4295
	
Kmart
	
North Miami
	
FL

	
10
	
1225
	
Sears
	
Orlando
	
FL

	
11
	
1295
	
Sears
	
St Petersburg
	
FL

	
12
	
1305
	
Sears
	
Savannah
	
GA

	
13
	
7480
	
Kmart
	
Honolulu
	
HI

	
14
	
3879
	
Kmart
	
Braintree
	
MA

	
15
	
4177
	
Kmart
	
St. Clair Shores
	
MI

	
16
	
1052
	
Sears
	
St Paul
	
MN

	
17
	
1574
	
Sears
	
Middletown
	
NJ

	
18
	
1294
	
Sears
	
Watchung
	
NJ

	
19
	
1264
	
Sears
	
Hicksville
	
NY

	
20
	
1186
	
Sears
	
Memphis
	
TN

	
21
	
1057
	
Sears
	
Valley View
	
TX

	
TOTAL

*“Go Dark Value” is the value of the Demised Premises vacant and free and clear of the Master Lease.

 

 

 

 

 

Schedule 2

Base Rent Adjustment

As of Commencement Date

 

	
 
	
Site
	
Type
	
City
	
State
	
SHC SF
	
SHC Base

Rent

Adjustment
	
Lands’

End SF
	
Lands’ End

Rent
	
Total SHC 

and Lands’

End SF
	
Total Base

Rent

Adjustment

Plus Lands’

End Rent
	
Occurrence

of Multi-

Tenancy

Occupancy

Date

(Y/N)
	
Total SF

(including all

third-party

leases)
	
Tenant’s

Proportionate

Share **

	
1
	
1089
	
Sears
	
Anchorage
	
AK
	
204,149
	
[**]
	
7,930
	
[**]
	
Y
	
257,948
	
[**]

	
2
	
9571
	
Kmart
	
Cullman
	
AL
	
98,522
	
0
	
N
	
98,522

	
3
	
1206
	
Sears
	
North Little Rock
	
AR
	
185,718
	
0
	
N
	
185,718

	
4
	
9711
	
Kmart
	
Russellville
	
AR
	
88,032
	
0
	
N
	
88,032

	
5
	
2358
	
Sears
	
Flagstaff
	
AZ
	
66,162
	
0
	
N
	
66,162

	
6
	
1078
	
Sears
	
Mesa
	
AZ
	
121,911
	
0
	
N
	
121,911

	
7
	
1708
	
Sears
	
Phoenix
	
AZ
	
144,228
	
0
	
N
	
144,228

	
8
	
2218
	
Sears
	
Prescott
	
AZ
	
102,338
	
0
	
N
	
102,338

	
9
	
2047
	
Sears
	
Sierra Vista
	
AZ
	
94,707
	
0
	
N
	
94,707

	
10
	
3695
	
Kmart
	
Sierra Vista
	
AZ
	
86,079
	
0
	
N
	
86,079

	
11
	
1338
	
Sears
	
Tucson
	
AZ
	
250,096
	
0
	
N
	
250,096

	
12
	
2078
	
Sears
	
Yuma
	
AZ
	
90,376
	
0
	
N
	
90,376

	
13
	
4762
	
Kmart
	
Antioch
	
CA
	
95,165
	
0
	
N
	
95,165

	
14
	
7653
	
Kmart
	
Big Bear Lake
	
CA
	
69,288
	
0
	
Y
	
80,008

	
15
	
1568
	
Sears
	
Carson
	
CA
	
163,440
	
0
	
Y
	
194,547

	
16
	
1358
	
Sears
	
Chula Vista
	
CA
	
250,092
	
0
	
N
	
250,092

	
17
	
1538
	
Sears
	
Citrus Heights
	
CA
	
280,714
	
8,827
	
N
	
289,541

	
18
	
3945
	
Kmart
	
Delano
	
CA
	
86,079
	
0
	
N
	
86,079

	
19
	
1438
	
Sears
	
El Cajon
	
CA
	
275,670
	
6,511
	
Y
	
286,481

	
20
	
1988
	
Sears
	
El Centro
	
CA
	
139,738
	
0
	
N
	
139,738

	
21
	
1159
	
Sears
	
Fairfield
	
CA
	
159,278
	
4,848
	
N
	
164,126

	
22
	
1408
	
Sears
	
Florin
	
CA
	
272,691
	
0
	
N
	
272,691

	
23
	
1208
	
Sears
	
Fresno
	
CA
	
217,566
	
0
	
N
	
217,566

	
24
	
7390
	
Kmart
	
McKinleyville
	
CA
	
94,774
	
0
	
N
	
94,774

	
25
	
2298
	
Sears
	
Merced
	
CA
	
92,624
	
0
	
N
	
92,624

	
26
	
1748
	
Sears
	
Montclair
	
CA
	
174,675
	
0
	
N
	
174,675

	
27
	
1868
	
Sears
	
Moreno Valley
	
CA
	
169,371
	
0
	
N
	
169,371

	
28
	
1698
	
Sears
	
Newark
	
CA
	
145,801
	
0
	
N
	
145,801

	
29
	
1168
	
Sears
	
North Hollywood
	
CA
	
150,982
	
0
	
N
	
150,982

	
30
	
1508
	
Sears
	
Northridge
	
CA
	
256,917
	
0
	
Y
	
291,767

	
*
	
Amounts include approximately 6,700 square feet of space with an annual rent of   [**]    occupied by Sears Hometown at Kmart site #9647

	
**
	
Notwithstanding the foregoing computations of Tenant’s Proportionate share, with respect to those Properties which are subject, as of the Commencement Date, to Leases which consist of ground leases of portions of the Property on which free-standing buildings have been constructed (“Third-Party Ground Leases”), Landlord and Tenant shall work together cooperatively and in good faith to determine and make, as appropriate, any adjustments in Tenant’s Proportionate Share with respect to any such Properties to take into account the effect of any payments required to be made to the landlord under such Third-Party Ground Leases with respect to Property Changes for such Properties, such adjustment to continue so long as such Third-Party Leases remain in effect.

 

Schedule 2 Base Rent Adjustment - 1

 

	
 
	
Site
	
Type
	
City
	
State
	
SHC SF
	
SHC Base

Rent

Adjustment
	
Lands’

End SF
	
Lands’ End

Rent
	
Total SHC 

and Lands’

End SF
	
Total Base

Rent

Adjustment

Plus Lands’

End Rent
	
Occurrence

of Multi-

Tenancy

Occupancy

Date

(Y/N)
	
Total SF

(including all

third-party

leases)
	
Tenant’s

Proportionate

Share **

	
31
	
1968
	
Sears
	
Palm Desert
	
CA
	
151,458
	
[**]
	
0
	
[**]
	
N
	
151,458
	
[**]

	
32
	
3678
	
Kmart
	
Ramona
	
CA
	
86,988
	
0
	
Y
	
107,470

	
33
	
1298
	
Sears
	
Riverside
	
CA
	
202,030
	
0
	
Y
	
214,230

	
34
	
4432
	
Kmart
	
Riverside
	
CA
	
94,500
	
0
	
Y
	
132,632

	
35
	
1156
	
Sears
	
Roseville
	
CA
	
131,425
	
7,565
	
N
	
138,990

	
36
	
1688
	
Sears
	
Salinas
	
CA
	
132,974
	
0
	
N
	
132,974

	
37
	
1398
	
Sears
	
San Bernardino
	
CA
	
264,682
	
0
	
N
	
264,682

	
38
	
1478
	
Sears
	
San Bruno
	
CA
	
267,896
	
8,698
	
Y
	
276,594

	
39
	
1648
	
Sears
	
San Diego
	
CA
	
164,830
	
9,818
	
Y
	
228,724

	
40
	
1488
	
Sears
	
San Jose
	
CA
	
262,491
	
0
	
N
	
262,491

	
41
	
2308
	
Sears
	
Santa Cruz
	
CA
	
105,769
	
5,709
	
Y
	
119,576

	
42
	
2088
	
Sears
	
Santa Maria
	
CA
	
108,596
	
0
	
N
	
108,596

	
43
	
1178
	
Sears
	
Santa Monica
	
CA
	
111,983
	
5,818
	
N
	
117,801

	
44
	
7639
	
Kmart
	
Santa Paula
	
CA
	
71,257
	
0
	
N
	
71,257

	
45
	
1108
	
Sears
	
Temecula
	
CA
	
115,636
	
0
	
N
	
115,636

	
46
	
2318
	
Sears
	
Thousand Oaks
	
CA
	
50,334
	
0
	
Y
	
164,040

	
47
	
1148
	
Sears
	
Ventura
	
CA
	
171,874
	
6,691
	
N
	
178,565

	
48
	
2068
	
Sears
	
Visalia
	
CA
	
75,570
	
0
	
N
	
75,570

	
49
	
1189
	
Sears
	
West Covina
	
CA
	
142,000
	
0
	
N
	
142,000

	
50
	
1608
	
Sears
	
Westminster
	
CA
	
197,904
	
0
	
N
	
197,904

	
51
	
1071
	
Sears
	
Lakewood
	
CO
	
153,000
	
0
	
Y
	
153,000

	
52
	
4917
	
Kmart
	
Thornton
	
CO
	
190,174
	
0
	
N
	
190,174

	
53
	
1193
	
Sears
	
Waterford
	
CT
	
141,756
	
7,484
	
N
	
149,240

	
54
	
1063
	
Sears
	
West Hartford
	
CT
	
186,904
	
7,481
	
Y
	
202,072

	
55
	
7725
	
Kmart
	
Rehoboth Beach
	
DE
	
117,162
	
0
	
Y
	
122,162

	
56
	
1355
	
Sears
	
Altamonte Springs
	
FL
	
205,628
	
0
	
Y
	
214,357

	
57
	
1645
	
Sears
	
Boca Raton
	
FL
	
167,637
	
6,696
	
Y
	
178,547

	
58
	
2565
	
Sears
	
Bradenton
	
FL
	
99,946
	
0
	
N
	
99,946

	
59
	
7321
	
Kmart
	
Bradenton
	
FL
	
82,938
	
0
	
N
	
82,938

	
60
	
1415
	
Sears
	
Clearwater
	
FL
	
129,693
	
6,012
	
Y
	
211,739

	
61
	
1715
	
Sears
	
Doral
	
FL
	
212,884
	
0
	
N
	
212,884

	
62
	
1495
	
Sears
	
Ft. Myers
	
FL
	
146,792
	
0
	
N
	
146,792

	
63
	
1665
	
Sears
	
Gainesville
	
FL
	
140,529
	
0
	
N
	
140,529

	
64
	
1345
	
Sears
	
Hialeah
	
FL
	
184,442
	
0
	
Y
	
197,453

	
65
	
4292
	
Kmart
	
Hialeah
	
FL
	
88,390
	
0
	
Y
	
106,390

	
66
	
7233
	
Kmart
	
Kissimmee
	
FL
	
112,505
	
0
	
Y
	
148,885

	
*
	
Amounts include approximately 6,700 square feet of space with an annual rent of   [**]    occupied by Sears Hometown at Kmart site #9647

	
**
	
Notwithstanding the foregoing computations of Tenant’s Proportionate share, with respect to those Properties which are subject, as of the Commencement Date, to Leases which consist of ground leases of portions of the Property on which free-standing buildings have been constructed (“Third-Party Ground Leases”), Landlord and Tenant shall work together cooperatively and in good faith to determine and make, as appropriate, any adjustments in Tenant’s Proportionate Share with respect to any such Properties to take into account the effect of any payments required to be made to the landlord under such Third-Party Ground Leases with respect to Property Changes for such Properties, such adjustment to continue so long as such Third-Party Leases remain in effect.

 

Schedule 2 Base Rent Adjustment - 2

 

	
 
	
Site
	
Type
	
City
	
State
	
SHC SF
	
SHC Base

Rent

Adjustment
	
Lands’

End SF
	
Lands’ End

Rent
	
Total SHC 

and Lands’

End SF
	
Total Base

Rent

Adjustment

Plus Lands’

End Rent
	
Occurrence

of Multi-

Tenancy

Occupancy

Date

(Y/N)
	
Total SF

(including all

third-party

leases)
	
Tenant’s

Proportionate

Share **

	
67
	
1955
	
Sears
	
Lakeland
	
FL
	
156,226
	
[**]
	
0
	
[**]
	
N
	
156,226
	
[**]

	
68
	
2245
	
Sears
	
Melbourne
	
FL
	
102,577
	
0
	
N
	
102,577

	
69
	
1365
	
Sears
	
Miami
	
FL
	
170,122
	
0
	
N
	
170,122

	
70
	
1655
	
Sears
	
Miami
	
FL
	
173,322
	
0
	
N
	
173,322

	
71
	
2695
	
Sears
	
Naples
	
FL
	
151,798
	
0
	
Y
	
161,892

	
72
	
4295
	
Kmart
	
North Miami
	
FL
	
106,305
	
0
	
Y
	
122,250

	
73
	
1006
	
Sears
	
Ocala
	
FL
	
146,236
	
0
	
N
	
146,236

	
74
	
1225
	
Sears
	
Orlando
	
FL
	
197,469
	
4,531
	
Y
	
202,000

	
75
	
2805
	
Sears
	
Panama City
	
FL
	
139,315
	
0
	
N
	
139,315

	
76
	
1096
	
Sears
	
Pensacola
	
FL
	
212,274
	
0
	
N
	
212,274

	
77
	
1535
	
Sears
	
Plantation
	
FL
	
201,596
	
0
	
N
	
201,596

	
78
	
1625
	
Sears
	
Sarasota
	
FL
	
204,453
	
7,975
	
N
	
212,428

	
79
	
1295
	
Sears
	
St. Petersburg
	
FL
	
187,000
	
0
	
Y
	
193,896

	
80
	
4355
	
Kmart
	
St. Petersburg
	
FL
	
120,631
	
0
	
N
	
120,631

	
81
	
1385
	
Sears
	
Atlanta
	
GA
	
218,710
	
7,587
	
N
	
226,297

	
82
	
1305
	
Sears
	
Savannah
	
GA
	
155,684
	
0
	
Y
	
167,284

	
83
	
7480
	
Kmart
	
Honolulu
	
HI
	
77,452
	
0
	
N
	
77,452

	
84
	
9220
	
Kmart
	
Algona
	
IA
	
99,260
	
0
	
N
	
99,260

	
85
	
2212
	
Sears
	
Cedar Rapids
	
IA
	
141,124
	
4,876
	
N
	
146,000

	
86
	
7767
	
Kmart
	
Charles City
	
IA
	
96,569
	
0
	
N
	
96,569

	
87
	
9309
	
Kmart
	
Webster City
	
IA
	
40,800
	
0
	
N
	
40,800

	
88
	
1229
	
Sears
	
Boise
	
ID
	
123,623
	
0
	
N
	
123,623

	
89
	
1090
	
Sears
	
Chicago
	
IL
	
293,718
	
0
	
N
	
293,718

	
90
	
1380
	
Sears
	
Chicago
	
IL
	
356,744
	
0
	
N
	
356,744

	
91
	
3594
	
Kmart
	
Chicago
	
IL
	
118,816
	
0
	
Y
	
168,537

	
92
	
1740
	
Sears
	
Joliet
	
IL
	
204,629
	
0
	
N
	
204,629

	
93
	
4297
	
Kmart
	
Moline
	
IL
	
120,488
	
0
	
Y
	
123,693

	
94
	
1212
	
Sears
	
North Riverside
	
IL
	
203,001
	
0
	
N
	
203,001

	
95
	
1750
	
Sears
	
Orland Park
	
IL
	
192,445
	
7,154
	
N
	
199,599

	
96
	
3241
	
Kmart
	
Springfield
	
IL
	
84,180
	
0
	
Y
	
127,385

	
97
	
7289
	
Kmart
	
Steger
	
IL
	
87,406
	
0
	
N
	
87,406

	
98
	
3556
	
Kmart
	
Elkhart
	
IN
	
86,479
	
0
	
N
	
86,479

	
99
	
1830
	
Sears
	
Ft. Wayne
	
IN
	
213,545
	
6,455
	
N
	
220,000

	
100
	
3180
	
Kmart
	
Merrillville
	
IN
	
108,339
	
0
	
Y
	
173,146

	
101
	
9647
	
Kmart
	
Leavenworth*
	
KS
	
76,853
	
0
	
N
	
83,552

	
102
	
1101
	
Sears
	
Overland Pk
	
KS
	
215,018
	
8,234
	
N
	
223,252

	
*
	
Amounts include approximately 6,700 square feet of space with an annual rent of   [**]    occupied by Sears Hometown at Kmart site #9647

	
**
	
Notwithstanding the foregoing computations of Tenant’s Proportionate share, with respect to those Properties which are subject, as of the Commencement Date, to Leases which consist of ground leases of portions of the Property on which free-standing buildings have been constructed (“Third-Party Ground Leases”), Landlord and Tenant shall work together cooperatively and in good faith to determine and make, as appropriate, any adjustments in Tenant’s Proportionate Share with respect to any such Properties to take into account the effect of any payments required to be made to the landlord under such Third-Party Ground Leases with respect to Property Changes for such Properties, such adjustment to continue so long as such Third-Party Leases remain in effect.

 

Schedule 2 Base Rent Adjustment - 3

 

	
 
	
Site
	
Type
	
City
	
State
	
SHC SF
	
SHC Base

Rent

Adjustment
	
Lands’

End SF
	
Lands’ End

Rent
	
Total SHC 

and Lands’

End SF
	
Total Base

Rent

Adjustment

Plus Lands’

End Rent
	
Occurrence

of Multi-

Tenancy

Occupancy

Date

(Y/N)
	
Total SF

(including all

third-party

leases)
	
Tenant’s

Proportionate

Share **

	
103
	
7607
	
Kmart
	
Hopkinsville
	
KY
	
70,326
	
[**]
	
0
	
[**]
	
Y
	
92,985
	
[**]

	
104
	
7430
	
Kmart
	
Owensboro
	
KY
	
68,334
	
0
	
N
	
68,334

	
105
	
2176
	
Sears
	
Paducah
	
KY
	
108,244
	
0
	
N
	
108,244

	
106
	
3320
	
Kmart
	
Houma
	
LA
	
96,681
	
0
	
Y
	
101,393

	
107
	
1347
	
Sears
	
Lafayette
	
LA
	
194,933
	
0
	
N
	
194,933

	
108
	
7061
	
Kmart
	
New Iberia
	
LA
	
91,653
	
0
	
N
	
91,653

	
109
	
3879
	
Kmart
	
Braintree
	
MA
	
102,396
	
0
	
Y
	
113,442

	
110
	
1053
	
Sears
	
Saugus
	
MA
	
204,862
	
5,565
	
N
	
210,427

	
111
	
2034
	
Sears
	
Bowie
	
MD
	
131,536
	
0
	
N
	
131,536

	
112
	
1864
	
Sears
	
Cockeysville
	
MD
	
149,704
	
16,242
	
N
	
165,946

	
113
	
7713
	
Kmart
	
Edgewater
	
MD
	
117,162
	
0
	
Y
	
117,162

	
114
	
2945
	
Sears
	
Hagerstown
	
MD
	
122,711
	
0
	
N
	
122,711

	
115
	
9521
	
Kmart
	
Madawaska
	
ME
	
49,650
	
0
	
N
	
49,650

	
116
	
7733
	
Kmart
	
Alpena
	
MI
	
118,200
	
0
	
N
	
118,200

	
117
	
2050
	
Sears
	
Jackson
	
MI
	
144,162
	
0
	
Y
	
152,662

	
118
	
1250
	
Sears
	
Lincoln Park
	
MI
	
297,905
	
0
	
Y
	
301,663

	
119
	
4845
	
Kmart
	
Manistee
	
MI
	
87,848
	
0
	
Y
	
94,696

	
120
	
1450
	
Sears
	
Roseville
	
MI
	
367,378
	
10,019
	
Y
	
385,397

	
121
	
9586
	
Kmart
	
Sault Ste. Marie
	
MI
	
92,650
	
0
	
N
	
92,650

	
122
	
4177
	
Kmart
	
St. Clair Shores
	
MI
	
117,959
	
0
	
Y
	
122,137

	
123
	
1490
	
Sears
	
Troy
	
MI
	
380,926
	
9,074
	
Y
	
402,630

	
124
	
1132
	
Sears
	
Burnsville
	
MN
	
161,678
	
5,659
	
N
	
167,337

	
125
	
3775
	
Kmart
	
Detroit Lakes
	
MN
	
79,102
	
0
	
Y
	
87,102

	
126
	
1122
	
Sears
	
Maplewood
	
MN
	
168,549
	
6,421
	
N
	
174,970

	
127
	
1052
	
Sears
	
St. Paul
	
MN
	
216,304
	
0
	
Y
	
217,930

	
128
	
7021
	
Kmart
	
Cape Girardeau
	
MO
	
82,597
	
0
	
N
	
82,597

	
129
	
4304
	
Kmart
	
Florissant
	
MO
	
114,740
	
0
	
Y
	
119,040

	
130
	
7018
	
Kmart
	
Jefferson City
	
MO
	
92,016
	
0
	
Y
	
97,141

	
131
	
7719
	
Kmart
	
Columbus
	
MS
	
117,082
	
0
	
Y
	
166,682

	
132
	
4814
	
Kmart
	
Havre
	
MT
	
94,658
	
0
	
N
	
94,658

	
133
	
1185
	
Sears
	
Asheville
	
NC
	
232,380
	
8,263
	
N
	
240,643

	
134
	
4758
	
Kmart
	
Concord
	
NC
	
137,499
	
0
	
Y
	
171,266

	
135
	
4353
	
Kmart
	
Minot
	
ND
	
108,110
	
0
	
Y
	
110,413

	
136
	
3814
	
Kmart
	
Kearney
	
NE
	
86,479
	
0
	
N
	
86,479

	
137
	
2443
	
Sears
	
Manchester
	
NH
	
135,109
	
8,961
	
N
	
144,070

	
138
	
1313
	
Sears
	
Nashua
	
NH
	
159,509
	
7,573
	
N
	
167,082

	
*
	
Amounts include approximately 6,700 square feet of space with an annual rent of   [**]    occupied by Sears Hometown at Kmart site #9647

	
**
	
Notwithstanding the foregoing computations of Tenant’s Proportionate share, with respect to those Properties which are subject, as of the Commencement Date, to Leases which consist of ground leases of portions of the Property on which free-standing buildings have been constructed (“Third-Party Ground Leases”), Landlord and Tenant shall work together cooperatively and in good faith to determine and make, as appropriate, any adjustments in Tenant’s Proportionate Share with respect to any such Properties to take into account the effect of any payments required to be made to the landlord under such Third-Party Ground Leases with respect to Property Changes for such Properties, such adjustment to continue so long as such Third-Party Leases remain in effect.

 

Schedule 2 Base Rent Adjustment - 4

 

	
 
	
Site
	
Type
	
City
	
State
	
SHC SF
	
SHC Base

Rent

Adjustment
	
Lands’

End SF
	
Lands’ End

Rent
	
Total SHC 

and Lands’

End SF
	
Total Base

Rent

Adjustment

Plus Lands’

End Rent
	
Occurrence

of Multi-

Tenancy

Occupancy

Date

(Y/N)
	
Total SF

(including all

third-party

leases)
	
Tenant’s

Proportionate

Share **

	
139
	
2663
	
Sears
	
Portsmouth
	
NH
	
120,120
	
[**]
	
6,938
	
[**]
	
N
	
127,058
	
[**]

	
140
	
1003
	
Sears
	
Salem
	
NH
	
119,036
	
8,532
	
Y
	
206,558

	
141
	
1574
	
Sears
	
Middletown
	
NJ
	
176,069
	
8,471
	
Y
	
191,230

	
142
	
1294
	
Sears
	
Watchung
	
NJ
	
253,860
	
9,042
	
Y
	
262,902

	
143
	
1434
	
Sears
	
Wayne
	
NJ
	
317,682
	
9,652
	
N
	
327,334

	
144
	
7755
	
Kmart
	
Deming
	
NM
	
96,571
	
0
	
N
	
96,571

	
145
	
7035
	
Kmart
	
Farmington
	
NM
	
90,651
	
0
	
N
	
90,651

	
146
	
7016
	
Kmart
	
Hobbs
	
NM
	
88,914
	
0
	
N
	
88,914

	
147
	
9819
	
Kmart
	
Henderson
	
NV
	
122,823
	
0
	
Y
	
143,914

	
148
	
1668
	
Sears
	
Las Vegas
	
NV
	
150,185
	
0
	
N
	
150,185

	
149
	
1978
	
Sears
	
Reno
	
NV
	
198,833
	
0
	
N
	
198,833

	
150
	
1103
	
Sears
	
Albany
	
NY
	
264,271
	
7,616
	
Y
	
305,670

	
151
	
1623
	
Sears
	
Clay
	
NY
	
137,962
	
8,542
	
N
	
146,504

	
152
	
1794
	
Sears
	
East Northport
	
NY
	
186,950
	
8,350
	
Y
	
195,300

	
153
	
1264
	
Sears
	
Hicksville
	
NY
	
332,065
	
8,369
	
Y
	
362,572

	
154
	
1784
	
Sears
	
Johnson City
	
NY
	
155,126
	
0
	
N
	
155,126

	
155
	
7695
	
Kmart
	
Olean
	
NY
	
118,004
	
0
	
N
	
118,004

	
156
	
1524
	
Sears
	
Rochester
	
NY
	
128,513
	
0
	
N
	
128,513

	
157
	
7676
	
Kmart
	
Sidney
	
NY
	
94,428
	
0
	
N
	
94,428

	
158
	
1584
	
Sears
	
Victor
	
NY
	
115,312
	
7,688
	
N
	
123,000

	
159
	
1944
	
Sears
	
Yorktown Heights
	
NY
	
153,670
	
6,334
	
N
	
160,004

	
160
	
1410
	
Sears
	
Canton
	
OH
	
210,384
	
8,979
	
N
	
219,363

	
161
	
1520
	
Sears
	
Chapel Hill
	
OH
	
187,179
	
7,495
	
Y
	
196,240

	
162
	
1560
	
Sears
	
Dayton
	
OH
	
183,532
	
8,969
	
N
	
192,501

	
163
	
7736
	
Kmart
	
Kenton
	
OH
	
96,066
	
0
	
N
	
96,066

	
164
	
7477
	
Kmart
	
Marietta
	
OH
	
87,543
	
0
	
N
	
87,543

	
165
	
1350
	
Sears
	
Mentor
	
OH
	
208,712
	
10,420
	
N
	
219,132

	
166
	
1430
	
Sears
	
Middleburg Heights
	
OH
	
351,610
	
7,381
	
N
	
358,991

	
167
	
3243
	
Kmart
	
North Canton
	
OH
	
84,180
	
0
	
Y
	
87,114

	
168
	
3142
	
Kmart
	
Tallmadge
	
OH
	
84,180
	
0
	
N
	
84,180

	
169
	
1220
	
Sears
	
Toledo
	
OH
	
209,948
	
8,772
	
N
	
218,720

	
170
	
7003
	
Kmart
	
Muskogee
	
OK
	
87,500
	
0
	
N
	
87,500

	
171
	
1091
	
Sears
	
Oklahoma City
	
OK
	
173,658
	
0
	
N
	
173,658

	
172
	
1119
	
Sears
	
Happy Valley
	
OR
	
137,879
	
6,442
	
N
	
144,321

	
173
	
3888
	
Kmart
	
The Dalles
	
OR
	
87,101
	
0
	
N
	
87,101

	
174
	
7746
	
Kmart
	
Carlisle
	
PA
	
117,781
	
0
	
N
	
117,781

	
*
	
Amounts include approximately 6,700 square feet of space with an annual rent of   [**]    occupied by Sears Hometown at Kmart site #9647

	
**
	
Notwithstanding the foregoing computations of Tenant’s Proportionate share, with respect to those Properties which are subject, as of the Commencement Date, to Leases which consist of ground leases of portions of the Property on which free-standing buildings have been constructed (“Third-Party Ground Leases”), Landlord and Tenant shall work together cooperatively and in good faith to determine and make, as appropriate, any adjustments in Tenant’s Proportionate Share with respect to any such Properties to take into account the effect of any payments required to be made to the landlord under such Third-Party Ground Leases with respect to Property Changes for such Properties, such adjustment to continue so long as such Third-Party Leases remain in effect.

 

Schedule 2 Base Rent Adjustment - 5

 

	
 
	
Site
	
Type
	
City
	
State
	
SHC SF
	
SHC Base

Rent

Adjustment
	
Lands’

End SF
	
Lands’ End

Rent
	
Total SHC 

and Lands’

End SF
	
Total Base

Rent

Adjustment

Plus Lands’

End Rent
	
Occurrence

of Multi-

Tenancy

Occupancy

Date

(Y/N)
	
Total SF

(including all

third-party

leases)
	
Tenant’s

Proportionate

Share **

	
175
	
3911
	
Kmart
	
Columbia
	
PA
	
86,721
	
[**]
	
0
	
[**]
	
N
	
86,721
	
[**]

	
176
	
7699
	
Kmart
	
Lebanon
	
PA
	
117,162
	
0
	
N
	
117,162

	
177
	
9770
	
Kmart
	
Mount Pleasant
	
PA
	
83,536
	
0
	
N
	
83,536

	
178
	
3954
	
Kmart
	
Walnutport
	
PA
	
121,159
	
0
	
N
	
121,159

	
179
	
4313
	
Kmart
	
York
	
PA
	
82,033
	
0
	
N
	
82,033

	
180
	
7788
	
Kmart
	
Bayamon
	
PR
	
114,600
	
0
	
Y
	
115,191

	
181
	
1085
	
Sears
	
Caguas
	
PR
	
138,686
	
0
	
N
	
138,686

	
182
	
1925
	
Sears
	
Carolina
	
PR
	
198,009
	
0
	
N
	
198,009

	
183
	
7768
	
Kmart
	
Guaynabo
	
PR
	
115,745
	
0
	
Y
	
217,335

	
184
	
3882
	
Kmart
	
Mayaguez
	
PR
	
118,242
	
0
	
N
	
118,242

	
185
	
7741
	
Kmart
	
Ponce
	
PR
	
126,887
	
0
	
N
	
126,887

	
186
	
1083
	
Sears
	
Warwick
	
RI
	
216,916
	
8,188
	
Y
	
246,052

	
187
	
7754
	
Kmart
	
Anderson
	
SC
	
118,749
	
0
	
N
	
118,749

	
188
	
1325
	
Sears
	
Charleston
	
SC
	
132,031
	
0
	
Y
	
138,828

	
189
	
7043
	
Kmart
	
Rock Hill
	
SC
	
89,299
	
0
	
Y
	
89,299

	
190
	
7318
	
Kmart
	
Sioux Falls
	
SD
	
72,511
	
0
	
N
	
72,511

	
191
	
1146
	
Sears
	
Cordova
	
TN
	
156,131
	
4,754
	
N
	
160,885

	
192
	
1186
	
Sears
	
Memphis
	
TN
	
191,665
	
4,899
	
Y
	
202,399

	
193
	
1847
	
Sears
	
Austin
	
TX
	
172,016
	
0
	
N
	
172,016

	
194
	
1227
	
Sears
	
Dallas
	
TX
	
205,297
	
0
	
N
	
205,297

	
195
	
4205
	
Kmart
	
El Paso
	
TX
	
103,657
	
0
	
Y
	
112,099

	
196
	
1257
	
Sears
	
Friendswood
	
TX
	
166,012
	
0
	
N
	
166,012

	
197
	
7077
	
Kmart
	
Harlingen
	
TX
	
91,653
	
0
	
N
	
91,653

	
198
	
1067
	
Sears
	
Houston
	
TX
	
209,488
	
4,941
	
Y
	
218,603

	
199
	
1277
	
Sears
	
Ingram
	
TX
	
168,397
	
0
	
N
	
168,397

	
200
	
2147
	
Sears
	
Irving
	
TX
	
79,535
	
0
	
Y
	
174,535

	
201
	
1167
	
Sears
	
San Antonio
	
TX
	
215,458
	
0
	
Y
	
221,837

	
202
	
1127
	
Sears
	
Shepherd
	
TX
	
201,700
	
0
	
N
	
201,700

	
203
	
1057
	
Sears
	
Valley View
	
TX
	
229,227
	
0
	
Y
	
235,007

	
204
	
1197
	
Sears
	
Westwood
	
TX
	
215,016
	
0
	
N
	
215,016

	
205
	
7426
	
Kmart
	
Layton
	
UT
	
90,010
	
0
	
Y
	
166,869

	
206
	
1888
	
Sears
	
West Jordan
	
UT
	
201,125
	
4,333
	
N
	
205,458

	
207
	
1284
	
Sears
	
Alexandria
	
VA
	
252,504
	
9,608
	
N
	
262,112

	
208
	
1615
	
Sears
	
Chesapeake
	
VA
	
169,376
	
0
	
N
	
169,376

	
209
	
1814
	
Sears
	
Fairfax
	
VA
	
214,110
	
11,668
	
N
	
225,778

	
210
	
1575
	
Sears
	
Hampton
	
VA
	
245,000
	
0
	
N
	
245,000

	
*
	
Amounts include approximately 6,700 square feet of space with an annual rent of   [**]    occupied by Sears Hometown at Kmart site #9647

	
**
	
Notwithstanding the foregoing computations of Tenant’s Proportionate share, with respect to those Properties which are subject, as of the Commencement Date, to Leases which consist of ground leases of portions of the Property on which free-standing buildings have been constructed (“Third-Party Ground Leases”), Landlord and Tenant shall work together cooperatively and in good faith to determine and make, as appropriate, any adjustments in Tenant’s Proportionate Share with respect to any such Properties to take into account the effect of any payments required to be made to the landlord under such Third-Party Ground Leases with respect to Property Changes for such Properties, such adjustment to continue so long as such Third-Party Leases remain in effect.

 

Schedule 2 Base Rent Adjustment - 6

 

	
 
	
Site
	
Type
	
City
	
State
	
SHC SF
	
SHC Base

Rent

Adjustment
	
Lands’

End SF
	
Lands’ End

Rent
	
Total SHC 

and Lands’

End SF
	
Total Base

Rent

Adjustment

Plus Lands’

End Rent
	
Occurrence

of Multi-

Tenancy

Occupancy

Date

(Y/N)
	
Total SF

(including all

third-party

leases)
	
Tenant’s

Proportionate

Share **

	
211
	
1265
	
Sears
	
Virginia Beach
	
VA
	
86,855
	
[**]
	
0
	
[**]
	
Y
	
200,315
	
[**]

	
212
	
2514
	
Sears
	
Warrenton
	
VA
	
113,948
	
7,130
	
N
	
121,078

	
213
	
1069
	
Sears
	
Redmond
	
WA
	
255,949
	
11,458
	
Y
	
274,907

	
214
	
2239
	
Sears
	
Vancouver
	
WA
	
124,888
	
4,750
	
N
	
129,638

	
215
	
4439
	
Kmart
	
Yakima
	
WA
	
97,251
	
0
	
Y
	
117,251

	
216
	
1082
	
Sears
	
Greendale
	
WI
	
238,416
	
0
	
N
	
238,416

	
217
	
2382
	
Sears
	
Madison
	
WI
	
130,201
	
8,062
	
N
	
138,263

	
218
	
3970
	
Kmart
	
Platteville
	
WI
	
94,841
	
0
	
N
	
94,841

	
219
	
4188
	
Kmart
	
Charleston
	
WV
	
105,575
	
0
	
N
	
105,575

	
220
	
3877
	
Kmart
	
Elkins
	
WV
	
94,885
	
0
	
Y
	
99,598

	
221
	
3724
	
Kmart
	
Scott Depot
	
WV
	
89,790
	
0
	
N
	
89,790

	
222
	
4736
	
Kmart
	
Casper
	
WY
	
91,266
	
0
	
Y
	
91,366

	
223
	
4863
	
Kmart
	
Gillette
	
WY
	
94,587
	
0
	
N
	
94,587

	
224
	
4837
	
Kmart
	
Riverton
	
WY
	
94,840
	
0
	
N
	
94,840

	
TOTAL
	
33,534,252
	
$133,999,528
	
452,460
	
$5,603,314
	
33,993,411
	
$139,626,841
	
 
	
35,573,891
	
95.56%

 

 

 

	
*
	
Amounts include approximately 6,700 square feet of space with an annual rent of   [**]    occupied by Sears Hometown at Kmart site #9647

	
**
	
Notwithstanding the foregoing computations of Tenant’s Proportionate share, with respect to those Properties which are subject, as of the Commencement Date, to Leases which consist of ground leases of portions of the Property on which free-standing buildings have been constructed (“Third-Party Ground Leases”), Landlord and Tenant shall work together cooperatively and in good faith to determine and make, as appropriate, any adjustments in Tenant’s Proportionate Share with respect to any such Properties to take into account the effect of any payments required to be made to the landlord under such Third-Party Ground Leases with respect to Property Changes for such Properties, such adjustment to continue so long as such Third-Party Leases remain in effect.

 

Schedule 2 Base Rent Adjustment - 7

 

	
*
	
Amounts include approximately 6,700 square feet of space with an annual rent of [**] occupied by Sears Hometown at Kmart site #9647

	
**
	
Footnote re:  pro-rata share and GL improvements

 

 

 

	
*
	
Amounts include approximately 6,700 square feet of space with an annual rent of [**]  occupied by Sears Hometown at Kmart site #9647

	
**
	
Notwithstanding the foregoing computations of Tenant’s Proportionate share, with respect to those Properties which are subject, as of the Commencement Date, to Leases which consist of ground leases of portions of the Property on which free-standing buildings have been constructed (“Third-Party Ground Leases”), Landlord and Tenant shall work together cooperatively and in good faith to determine and make, as appropriate, any adjustments in Tenant’s Proportionate Share with respect to any such Properties to take into account the effect of any payments required to be made to the landlord under such Third-Party Ground Leases with respect to Property Changes for such Properties, such adjustment to continue so long as such Third-Party Leases remain in effect.

 

Schedule 2 Base Rent Adjustment - 8

 

1. All capitalized terms which are not otherwise defined, shall have the same meaning as in the Master Lease

2. At any time during the Term, the Base Rent for all Demised Premises which remains subject to this Master Lease shall be the Initial Base Rent as set forth above, as increased during the Initial and Renewal Terms as provided in the definition of “Base Rent” in Section 2.1 of the Master Lease, and as decreased as provided in Paragraph 3 of this Schedule 2.

3. On each Actual Recapture Date, on each Actual Additional Space Termination Date (only with respect to buildings thereon which are included in the Initial Leased Square Feet, if any), on each Actual Property 100% Recapture Termination Date, on each Nonprofitable Property Termination Date, and on each other date on which the Master Lease is terminated with respect to any Termination Space as provided in this Master Lease, the annual Base Rent payable thereafter shall be adjusted downward, so that the new annual Base Rent for all of the Tenant’s Space from time to time shall be as follows:

(a) With respect to any Demised Premises as to which the Master Lease is terminated with respect to the entire Demised Premises, the new annual Base Rent shall be reduced by the entire amount as set forth above (as adjusted for annual percentage increases and/or by appraisal as provided in the Master Lease).

(b) With respect to any Demised Premises as to which the Master Lease is terminated only as to a portion of such Demised Premises, the new annual Base Rent shall be reduced by an amount equal to the product of (i) the entire amount as set forth above (as adjusted for annual percentage increases and/or by appraisal as provided in the Master Lease), multiplied by (ii) a fraction, the numerator of which shall be the Gross Leasable Square Footage of all the Tenant’s Space at the applicable Demised Premises (prior to recapture by Tenant of any Lands’ End Space or Sears Hometown Space), and the denominator of which shall be the Gross Leasable Square Footage (as set forth above) of the individual Demised Premises (less fifty percent (50%) of the Gross Leasable Square Footage of any Exclusive Store Areas). If the date for adjustment occurs on any date other than the first (1st) day of the month, any prepayment of Base Rent shall be credited against the next monthly installment of Base Rent. All references to “SF” in the above chart refers to Gross Leasable Square Footage. As of the Commencement Date, the “Total SF” indicated in the above chart comprises one hundred percent (100%) of the Gross Leasable Square Footage with respect to each individual Demised Premises.

(c) In the case of Tenant’s recapture of any Lands’ End Space or Sears Hometown Space as provided in Section 10.5(b), the new annual Base Rent (as reduced in subparagraph 3(b) above), shall be increased by an amount equal to the product of (a) the entire amount for the applicable Demised Premises as set forth above, multiplied by (b) a fraction, the numerator of which is the Gross Leasable Square Footage of the Lands’ End Space or Sears Hometown Space which is the subject of such recapture, and the denominator of which is the total Gross Leasable Square Footage of the Demised Premises existing at the Commencement Date, including the Gross Leasable Space Footage of the applicable Lands’ End Space or Sears Hometown Space.

(d) As of the Commencement Date, Tenant’s Proportionate Share with respect to each Demised Premises is as set forth in the above chart.

4. All disputes with respect to the foregoing calculations in Paragraph 3 of this Schedule 2 shall be subject to the dispute resolution provisions of Article XXIX.

 

 

 

 

 

Schedule 4.5

Installment Expenses

As of Commencement Date

 

	
Location & Pro-Rata
	
 

	
 
	
Site
	
Type
	
City
	
State
	
Tenant’s

Proportionate

Share
	
Estimated

CAM
	
Estimated

Taxes ***
	
Estimated

Insurance
	
Estimated

Utilities
	
Other

Operating

Expenses
	
Total

	
1
	
1089
	
Sears
	
Anchorage
	
AK
	
 
	
 
	
 
	
[**]
	
 
	
 
	
 

	
2
	
9571
	
Kmart
	
Cullman
	
AL
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
3
	
1206
	
Sears
	
North Little Rock
	
AR
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
4
	
9711
	
Kmart
	
Russellville
	
AR
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
5
	
2358
	
Sears
	
Flagstaff
	
AZ
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
6
	
1078
	
Sears
	
Mesa
	
AZ
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
7
	
1708
	
Sears
	
Phoenix
	
AZ
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
8
	
2218
	
Sears
	
Prescott
	
AZ
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
9
	
2047
	
Sears
	
Sierra Vista
	
AZ
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
10
	
3695
	
Kmart
	
Sierra Vista
	
AZ
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
11
	
1338
	
Sears
	
Tucson
	
AZ
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
12
	
2078
	
Sears
	
Yuma
	
AZ
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
13
	
4762
	
Kmart
	
Antioch
	
CA
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
14
	
7653
	
Kmart
	
Big Bear Lake
	
CA
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
15
	
1568
	
Sears
	
Carson
	
CA
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
16
	
1358
	
Sears
	
Chula Vista
	
CA
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
17
	
1538
	
Sears
	
Citrus Heights
	
CA
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
18
	
3945
	
Kmart
	
Delano
	
CA
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
19
	
1438
	
Sears
	
El Cajon
	
CA
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
20
	
1988
	
Sears
	
El Centro
	
CA
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
21
	
1159
	
Sears
	
Fairfield
	
CA
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
22
	
1408
	
Sears
	
Florin
	
CA
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
23
	
1208
	
Sears
	
Fresno
	
CA
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
24
	
7390
	
Kmart
	
McKinleyville
	
CA
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
25
	
2298
	
Sears
	
Merced
	
CA
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
26
	
1748
	
Sears
	
Montclair
	
CA
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
*
	
Calculation includes approximately 6,700 square feet of space occupied by Sears Hometown at Kmart site #9647

	
**
	
Notwithstanding the foregoing computations of Tenant’s Proportionate share, with respect to those Properties which are subject, as of the Commencement Date, to Leases which consist of ground leases of portions of the Property on which free-standing buildings have been constructed (“Third-Party Ground Leases”), Landlord and Tenant shall work together cooperatively and in good faith to determine and make, as appropriate, any adjustments in Tenant’s Proportionate Share with respect to any such Properties to take into account the effect of any payments required to be made to the landlord under such Third-Party Ground Leases with respect to Property Changes for such Properties, such adjustment to continue so long as such Third-Party Leases remain in effect.

 

Schedule 4.5 Installment Expenses - 1

 

	
Location & Pro-Rata
	
 

	
 
	
Site
	
Type
	
City
	
State
	
Tenant’s

Proportionate

Share
	
Estimated

CAM
	
Estimated

Taxes ***
	
Estimated

Insurance
	
Estimated

Utilities
	
Other

Operating

Expenses
	
Total

	
27
	
1868
	
Sears
	
Moreno Valley
	
CA
	
 
	
 
	
 
	
[**]
	
 
	
 
	
 

	
28
	
1698
	
Sears
	
Newark
	
CA
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
29
	
1168
	
Sears
	
North Hollywood
	
CA
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
30
	
1508
	
Sears
	
Northridge
	
CA
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
31
	
1968
	
Sears
	
Palm Desert
	
CA
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
32
	
3678
	
Kmart
	
Ramona
	
CA
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
33
	
1298
	
Sears
	
Riverside
	
CA
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
34
	
4432
	
Kmart
	
Riverside
	
CA
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
35
	
1156
	
Sears
	
Roseville
	
CA
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
36
	
1688
	
Sears
	
Salinas
	
CA
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
37
	
1398
	
Sears
	
San Bernardino
	
CA
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
38
	
1478
	
Sears
	
San Bruno
	
CA
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
39
	
1648
	
Sears
	
San Diego
	
CA
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
40
	
1488
	
Sears
	
San Jose
	
CA
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
41
	
2308
	
Sears
	
Santa Cruz
	
CA
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
42
	
2088
	
Sears
	
Santa Maria
	
CA
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
43
	
1178
	
Sears
	
Santa Monica
	
CA
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
44
	
7639
	
Kmart
	
Santa Paula
	
CA
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
45
	
1108
	
Sears
	
Temecula
	
CA
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
46
	
2318
	
Sears
	
Thousand Oaks
	
CA
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
47
	
1148
	
Sears
	
Ventura
	
CA
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
48
	
2068
	
Sears
	
Visalia
	
CA
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
49
	
1189
	
Sears
	
West Covina
	
CA
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
50
	
1608
	
Sears
	
Westminster
	
CA
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
51
	
1071
	
Sears
	
Lakewood
	
CO
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
52
	
4917
	
Kmart
	
Thornton
	
CO
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
53
	
1193
	
Sears
	
Waterford
	
CT
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
54
	
1063
	
Sears
	
West Hartford
	
CT
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
55
	
7725
	
Kmart
	
Rehoboth Beach
	
DE
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
56
	
1355
	
Sears
	
Altamonte Springs
	
FL
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
57
	
1645
	
Sears
	
Boca Raton
	
FL
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
58
	
2565
	
Sears
	
Bradenton
	
FL
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
*
	
Calculation includes approximately 6,700 square feet of space occupied by Sears Hometown at Kmart site #9647

	
**
	
Notwithstanding the foregoing computations of Tenant’s Proportionate share, with respect to those Properties which are subject, as of the Commencement Date, to Leases which consist of ground leases of portions of the Property on which free-standing buildings have been constructed (“Third-Party Ground Leases”), Landlord and Tenant shall work together cooperatively and in good faith to determine and make, as appropriate, any adjustments in Tenant’s Proportionate Share with respect to any such Properties to take into account the effect of any payments required to be made to the landlord under such Third-Party Ground Leases with respect to Property Changes for such Properties, such adjustment to continue so long as such Third-Party Leases remain in effect.

 

Schedule 4.5 Installment Expenses - 2

 

	
Location & Pro-Rata
	
 

	
 
	
Site
	
Type
	
City
	
State
	
Tenant’s

Proportionate

Share
	
Estimated

CAM
	
Estimated

Taxes ***
	
Estimated

Insurance
	
Estimated

Utilities
	
Other

Operating

Expenses
	
Total

	
59
	
7321
	
Kmart
	
Bradenton
	
FL
	
 
	
 
	
 
	
[**]
	
 
	
 
	
 

	
60
	
1415
	
Sears
	
Clearwater
	
FL
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
61
	
1715
	
Sears
	
Doral
	
FL
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
62
	
1495
	
Sears
	
Ft. Myers
	
FL
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
63
	
1665
	
Sears
	
Gainesville
	
FL
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
64
	
1345
	
Sears
	
Hialeah
	
FL
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
65
	
4292
	
Kmart
	
Hialeah
	
FL
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
66
	
7233
	
Kmart
	
Kissimmee
	
FL
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
67
	
1955
	
Sears
	
Lakeland
	
FL
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
68
	
2245
	
Sears
	
Melbourne
	
FL
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
69
	
1365
	
Sears
	
Miami
	
FL
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
70
	
1655
	
Sears
	
Miami
	
FL
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
71
	
2695
	
Sears
	
Naples
	
FL
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
72
	
4295
	
Kmart
	
North Miami
	
FL
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
73
	
1006
	
Sears
	
Ocala
	
FL
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
74
	
1225
	
Sears
	
Orlando
	
FL
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
75
	
2805
	
Sears
	
Panama City
	
FL
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
76
	
1096
	
Sears
	
Pensacola
	
FL
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
77
	
1535
	
Sears
	
Plantation
	
FL
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
78
	
1625
	
Sears
	
Sarasota
	
FL
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
79
	
1295
	
Sears
	
St. Petersburg
	
FL
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
80
	
4355
	
Kmart
	
St. Petersburg
	
FL
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
81
	
1385
	
Sears
	
Atlanta
	
GA
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
82
	
1305
	
Sears
	
Savannah
	
GA
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
83
	
7480
	
Kmart
	
Honolulu
	
HI
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
84
	
9220
	
Kmart
	
Algona
	
IA
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
85
	
2212
	
Sears
	
Cedar Rapids
	
IA
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
86
	
7767
	
Kmart
	
Charles City
	
IA
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
87
	
9309
	
Kmart
	
Webster City
	
IA
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
88
	
1229
	
Sears
	
Boise
	
ID
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
89
	
1090
	
Sears
	
Chicago
	
IL
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
90
	
1380
	
Sears
	
Chicago
	
IL
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
*
	
Calculation includes approximately 6,700 square feet of space occupied by Sears Hometown at Kmart site #9647

	
**
	
Notwithstanding the foregoing computations of Tenant’s Proportionate share, with respect to those Properties which are subject, as of the Commencement Date, to Leases which consist of ground leases of portions of the Property on which free-standing buildings have been constructed (“Third-Party Ground Leases”), Landlord and Tenant shall work together cooperatively and in good faith to determine and make, as appropriate, any adjustments in Tenant’s Proportionate Share with respect to any such Properties to take into account the effect of any payments required to be made to the landlord under such Third-Party Ground Leases with respect to Property Changes for such Properties, such adjustment to continue so long as such Third-Party Leases remain in effect.

 

Schedule 4.5 Installment Expenses - 3

 

	
Location & Pro-Rata
	
 

	
 
	
Site
	
Type
	
City
	
State
	
Tenant’s

Proportionate

Share
	
Estimated

CAM
	
Estimated

Taxes ***
	
Estimated

Insurance
	
Estimated

Utilities
	
Other

Operating

Expenses
	
Total

	
91
	
3594
	
Kmart
	
Chicago
	
IL
	
 
	
 
	
 
	
[**]
	
 
	
 
	
 

	
92
	
1740
	
Sears
	
Joliet
	
IL
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
93
	
4297
	
Kmart
	
Moline
	
IL
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
94
	
1212
	
Sears
	
North Riverside
	
IL
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
95
	
1750
	
Sears
	
Orland Park
	
IL
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
96
	
3241
	
Kmart
	
Springfield
	
IL
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
97
	
7289
	
Kmart
	
Steger
	
IL
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
98
	
3556
	
Kmart
	
Elkhart
	
IN
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
99
	
1830
	
Sears
	
Ft. Wayne
	
IN
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
100
	
3180
	
Kmart
	
Merrillville
	
IN
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
101
	
9647
	
Kmart
	
Leavenworth*
	
KS
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
102
	
1101
	
Sears
	
Overland Pk
	
KS
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
103
	
7607
	
Kmart
	
Hopkinsville
	
KY
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
104
	
7430
	
Kmart
	
Owensboro
	
KY
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
105
	
2176
	
Sears
	
Paducah
	
KY
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
106
	
3320
	
Kmart
	
Houma
	
LA
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
107
	
1347
	
Sears
	
Lafayette
	
LA
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
108
	
7061
	
Kmart
	
New Iberia
	
LA
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
109
	
3879
	
Kmart
	
Braintree
	
MA
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
110
	
1053
	
Sears
	
Saugus
	
MA
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
111
	
2034
	
Sears
	
Bowie
	
MD
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
112
	
1864
	
Sears
	
Cockeysville
	
MD
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
113
	
7713
	
Kmart
	
Edgewater
	
MD
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
114
	
2945
	
Sears
	
Hagerstown
	
MD
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
115
	
9521
	
Kmart
	
Madawaska
	
ME
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
116
	
7733
	
Kmart
	
Alpena
	
MI
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
117
	
2050
	
Sears
	
Jackson
	
MI
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
118
	
1250
	
Sears
	
Lincoln Park
	
MI
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
119
	
4845
	
Kmart
	
Manistee
	
MI
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
120
	
1450
	
Sears
	
Roseville
	
MI
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
121
	
9586
	
Kmart
	
Sault Ste. Marie
	
MI
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
122
	
4177
	
Kmart
	
St. Clair Shores
	
MI
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
*
	
Calculation includes approximately 6,700 square feet of space occupied by Sears Hometown at Kmart site #9647

	
**
	
Notwithstanding the foregoing computations of Tenant’s Proportionate share, with respect to those Properties which are subject, as of the Commencement Date, to Leases which consist of ground leases of portions of the Property on which free-standing buildings have been constructed (“Third-Party Ground Leases”), Landlord and Tenant shall work together cooperatively and in good faith to determine and make, as appropriate, any adjustments in Tenant’s Proportionate Share with respect to any such Properties to take into account the effect of any payments required to be made to the landlord under such Third-Party Ground Leases with respect to Property Changes for such Properties, such adjustment to continue so long as such Third-Party Leases remain in effect.

 

Schedule 4.5 Installment Expenses - 4

 

	
Location & Pro-Rata
	
 

	
 
	
Site
	
Type
	
City
	
State
	
Tenant’s

Proportionate

Share
	
Estimated

CAM
	
Estimated

Taxes ***
	
Estimated

Insurance
	
Estimated

Utilities
	
Other

Operating

Expenses
	
Total

	
123
	
1490
	
Sears
	
Troy
	
MI
	
 
	
 
	
 
	
[**]
	
 
	
 
	
 

	
124
	
1132
	
Sears
	
Burnsville
	
MN
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
125
	
3775
	
Kmart
	
Detroit Lakes
	
MN
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
126
	
1122
	
Sears
	
Maplewood
	
MN
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
127
	
1052
	
Sears
	
St. Paul
	
MN
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
128
	
7021
	
Kmart
	
Cape Girardeau
	
MO
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
129
	
4304
	
Kmart
	
Florissant
	
MO
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
130
	
7018
	
Kmart
	
Jefferson City
	
MO
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
131
	
7719
	
Kmart
	
Columbus
	
MS
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
132
	
4814
	
Kmart
	
Havre
	
MT
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
133
	
1185
	
Sears
	
Asheville
	
NC
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
134
	
4758
	
Kmart
	
Concord
	
NC
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
135
	
4353
	
Kmart
	
Minot
	
ND
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
136
	
3814
	
Kmart
	
Kearney
	
NE
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
137
	
2443
	
Sears
	
Manchester
	
NH
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
138
	
1313
	
Sears
	
Nashua
	
NH
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
139
	
2663
	
Sears
	
Portsmouth
	
NH
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
140
	
1003
	
Sears
	
Salem
	
NH
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
141
	
1574
	
Sears
	
Middletown
	
NJ
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
142
	
1294
	
Sears
	
Watchung
	
NJ
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
143
	
1434
	
Sears
	
Wayne
	
NJ
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
144
	
7755
	
Kmart
	
Deming
	
NM
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
145
	
7035
	
Kmart
	
Farmington
	
NM
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
146
	
7016
	
Kmart
	
Hobbs
	
NM
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
147
	
9819
	
Kmart
	
Henderson
	
NV
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
148
	
1668
	
Sears
	
Las Vegas
	
NV
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
149
	
1978
	
Sears
	
Reno
	
NV
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
150
	
1103
	
Sears
	
Albany
	
NY
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
151
	
1623
	
Sears
	
Clay
	
NY
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
152
	
1794
	
Sears
	
East Northport
	
NY
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
153
	
1264
	
Sears
	
Hicksville
	
NY
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
154
	
1784
	
Sears
	
Johnson City
	
NY
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
*
	
Calculation includes approximately 6,700 square feet of space occupied by Sears Hometown at Kmart site #9647

	
**
	
Notwithstanding the foregoing computations of Tenant’s Proportionate share, with respect to those Properties which are subject, as of the Commencement Date, to Leases which consist of ground leases of portions of the Property on which free-standing buildings have been constructed (“Third-Party Ground Leases”), Landlord and Tenant shall work together cooperatively and in good faith to determine and make, as appropriate, any adjustments in Tenant’s Proportionate Share with respect to any such Properties to take into account the effect of any payments required to be made to the landlord under such Third-Party Ground Leases with respect to Property Changes for such Properties, such adjustment to continue so long as such Third-Party Leases remain in effect.

 

Schedule 4.5 Installment Expenses - 5

 

	
Location & Pro-Rata
	
 

	
 
	
Site
	
Type
	
City
	
State
	
Tenant’s

Proportionate

Share
	
Estimated

CAM
	
Estimated

Taxes ***
	
Estimated

Insurance
	
Estimated

Utilities
	
Other

Operating

Expenses
	
Total

	
155
	
7695
	
Kmart
	
Olean
	
NY
	
 
	
 
	
 
	
[**]
	
 
	
 
	
 

	
156
	
1524
	
Sears
	
Rochester
	
NY
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
157
	
7676
	
Kmart
	
Sidney
	
NY
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
158
	
1584
	
Sears
	
Victor
	
NY
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
159
	
1944
	
Sears
	
Yorktown Heights
	
NY
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
160
	
1410
	
Sears
	
Canton
	
OH
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
161
	
1520
	
Sears
	
Chapel Hill
	
OH
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
162
	
1560
	
Sears
	
Dayton
	
OH
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
163
	
7736
	
Kmart
	
Kenton
	
OH
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
164
	
7477
	
Kmart
	
Marietta
	
OH
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
165
	
1350
	
Sears
	
Mentor
	
OH
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
166
	
1430
	
Sears
	
Middleburg Heights
	
OH
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
167
	
3243
	
Kmart
	
North Canton
	
OH
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
168
	
3142
	
Kmart
	
Tallmadge
	
OH
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
169
	
1220
	
Sears
	
Toledo
	
OH
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
170
	
7003
	
Kmart
	
Muskogee
	
OK
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
171
	
1091
	
Sears
	
Oklahoma City
	
OK
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
172
	
1119
	
Sears
	
Happy Valley
	
OR
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
173
	
3888
	
Kmart
	
The Dalles
	
OR
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
174
	
7746
	
Kmart
	
Carlisle
	
PA
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
175
	
3911
	
Kmart
	
Columbia
	
PA
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
176
	
7699
	
Kmart
	
Lebanon
	
PA
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
177
	
9770
	
Kmart
	
Mount Pleasant
	
PA
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
178
	
3954
	
Kmart
	
Walnutport
	
PA
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
179
	
4313
	
Kmart
	
York
	
PA
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
180
	
7788
	
Kmart
	
Bayamon
	
PR
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
181
	
1085
	
Sears
	
Caguas
	
PR
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
182
	
1925
	
Sears
	
Carolina
	
PR
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
183
	
7768
	
Kmart
	
Guaynabo
	
PR
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
184
	
3882
	
Kmart
	
Mayaguez
	
PR
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
185
	
7741
	
Kmart
	
Ponce
	
PR
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
186
	
1083
	
Sears
	
Warwick
	
RI
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
*
	
Calculation includes approximately 6,700 square feet of space occupied by Sears Hometown at Kmart site #9647

	
**
	
Notwithstanding the foregoing computations of Tenant’s Proportionate share, with respect to those Properties which are subject, as of the Commencement Date, to Leases which consist of ground leases of portions of the Property on which free-standing buildings have been constructed (“Third-Party Ground Leases”), Landlord and Tenant shall work together cooperatively and in good faith to determine and make, as appropriate, any adjustments in Tenant’s Proportionate Share with respect to any such Properties to take into account the effect of any payments required to be made to the landlord under such Third-Party Ground Leases with respect to Property Changes for such Properties, such adjustment to continue so long as such Third-Party Leases remain in effect.

 

Schedule 4.5 Installment Expenses - 6

 

	
Location & Pro-Rata
	
 

	
 
	
Site
	
Type
	
City
	
State
	
Tenant’s

Proportionate

Share
	
Estimated

CAM
	
Estimated

Taxes ***
	
Estimated

Insurance
	
Estimated

Utilities
	
Other

Operating

Expenses
	
Total

	
187
	
7754
	
Kmart
	
Anderson
	
SC
	
 
	
 
	
 
	
[**]
	
 
	
 
	
 

	
188
	
1325
	
Sears
	
Charleston
	
SC
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
189
	
7043
	
Kmart
	
Rock Hill
	
SC
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
190
	
7318
	
Kmart
	
Sioux Falls
	
SD
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
191
	
1146
	
Sears
	
Cordova
	
TN
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
192
	
1186
	
Sears
	
Memphis
	
TN
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
193
	
1847
	
Sears
	
Austin
	
TX
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
194
	
1227
	
Sears
	
Dallas
	
TX
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
195
	
4205
	
Kmart
	
El Paso
	
TX
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
196
	
1257
	
Sears
	
Friendswood
	
TX
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
197
	
7077
	
Kmart
	
Harlingen
	
TX
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
198
	
1067
	
Sears
	
Houston
	
TX
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
199
	
1277
	
Sears
	
Ingram
	
TX
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
200
	
2147
	
Sears
	
Irving
	
TX
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
201
	
1167
	
Sears
	
San Antonio
	
TX
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
202
	
1127
	
Sears
	
Shepherd
	
TX
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
203
	
1057
	
Sears
	
Valley View
	
TX
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
204
	
1197
	
Sears
	
Westwood
	
TX
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
205
	
7426
	
Kmart
	
Layton
	
UT
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
206
	
1888
	
Sears
	
West Jordan
	
UT
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
207
	
1284
	
Sears
	
Alexandria
	
VA
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
208
	
1615
	
Sears
	
Chesapeake
	
VA
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
209
	
1814
	
Sears
	
Fairfax
	
VA
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
210
	
1575
	
Sears
	
Hampton
	
VA
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
211
	
1265
	
Sears
	
Virginia Beach
	
VA
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
212
	
2514
	
Sears
	
Warrenton
	
VA
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
213
	
1069
	
Sears
	
Redmond
	
WA
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
214
	
2239
	
Sears
	
Vancouver
	
WA
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
215
	
4439
	
Kmart
	
Yakima
	
WA
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
216
	
1082
	
Sears
	
Greendale
	
WI
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
217
	
2382
	
Sears
	
Madison
	
WI
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
218
	
3970
	
Kmart
	
Platteville
	
WI
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
*
	
Calculation includes approximately 6,700 square feet of space occupied by Sears Hometown at Kmart site #9647

	
**
	
Notwithstanding the foregoing computations of Tenant’s Proportionate share, with respect to those Properties which are subject, as of the Commencement Date, to Leases which consist of ground leases of portions of the Property on which free-standing buildings have been constructed (“Third-Party Ground Leases”), Landlord and Tenant shall work together cooperatively and in good faith to determine and make, as appropriate, any adjustments in Tenant’s Proportionate Share with respect to any such Properties to take into account the effect of any payments required to be made to the landlord under such Third-Party Ground Leases with respect to Property Changes for such Properties, such adjustment to continue so long as such Third-Party Leases remain in effect.

 

Schedule 4.5 Installment Expenses - 7

 

	
Location & Pro-Rata
	
 

	
 
	
Site
	
Type
	
City
	
State
	
Tenant’s

Proportionate

Share
	
Estimated

CAM
	
Estimated

Taxes ***
	
Estimated

Insurance
	
Estimated

Utilities
	
Other

Operating

Expenses
	
Total

	
219
	
4188
	
Kmart
	
Charleston
	
WV
	
 
	
 
	
 
	
[**]
	
 
	
 
	
 

	
220
	
3877
	
Kmart
	
Elkins
	
WV
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
221
	
3724
	
Kmart
	
Scott Depot
	
WV
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
222
	
4736
	
Kmart
	
Casper
	
WY
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
223
	
4863
	
Kmart
	
Gillette
	
WY
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
224
	
4837
	
Kmart
	
Riverton
	
WY
	
 
	
 
	
 
	
 
	
 
	
 
	
 

	
TOTAL
	
 
	
 
	
 
	
 
	
 
	
 
	
 

 

 

 

	
*
	
Calculation includes approximately 6,700 square feet of space occupied by Sears Hometown at Kmart site #9647

	
**
	
Notwithstanding the foregoing computations of Tenant’s Proportionate share, with respect to those Properties which are subject, as of the Commencement Date, to Leases which consist of ground leases of portions of the Property on which free-standing buildings have been constructed (“Third-Party Ground Leases”), Landlord and Tenant shall work together cooperatively and in good faith to determine and make, as appropriate, any adjustments in Tenant’s Proportionate Share with respect to any such Properties to take into account the effect of any payments required to be made to the landlord under such Third-Party Ground Leases with respect to Property Changes for such Properties, such adjustment to continue so long as such Third-Party Leases remain in effect.

 

Schedule 4.5 Installment Expenses - 8

 

Schedule 10.1

Deferred Maintenance

This schedule is a summary of the latest property condition report delivered by the firm identified as the “Firm Preparing Report” in the schedule below prior to July 7, 2015. This schedule incorporates each such report by reference and nothing herein shall be deemed to supersede such reports. The conditions to be remediated pursuant hereto are identified as “Immediate Needs” and “Short-Term Costs” in the reports by Bock & Clark and as “Immediate Repair Costs Estimate” in the reports by EFI Global.

 

	
 
	
Site
	
Type
	
City
	
State
	
Property

Reserves*
	
Property

Type
	
Firm Preparing

Report

	
1
	
1003
	
Sears
	
Salem
	
NH
	
[**]
	
II
	
EFI Global

	
2
	
1006
	
Sears
	
Ocala
	
FL
	
 
	
II
	
EFI Global

	
3
	
1052
	
Sears
	
St. Paul
	
MN
	
 
	
I
	
EFI Global

	
4
	
1053
	
Sears
	
Saugus
	
MA
	
 
	
II
	
EFI Global

	
5
	
1057
	
Sears
	
Valley View
	
TX
	
 
	
I
	
EFI Global

	
6
	
1063
	
Sears
	
West Hartford
	
CT
	
 
	
I
	
EFI Global

	
7
	
1067
	
Sears
	
Houston
	
TX
	
 
	
II
	
EFI Global

	
8
	
1069
	
Sears
	
Redmond
	
WA
	
 
	
II
	
EFI Global

	
9
	
1071
	
Sears
	
Lakewood
	
CO
	
 
	
II
	
Bock & Clark

	
10
	
1078
	
Sears
	
Mesa
	
AZ
	
 
	
II
	
EFI Global

	
11
	
1082
	
Sears
	
Greendale
	
WI
	
 
	
II
	
Bock & Clark

	
12
	
1083
	
Sears
	
Warwick
	
RI
	
 
	
II
	
EFI Global

	
13
	
1085
	
Sears
	
Caguas
	
PR
	
 
	
II
	
EFI Global

	
14
	
1089
	
Sears
	
Anchorage
	
AK
	
 
	
I
	
EFI Global

	
15
	
1090
	
Sears
	
Chicago
	
IL
	
 
	
II
	
EFI Global

	
16
	
1091
	
Sears
	
Oklahoma City
	
OK
	
 
	
II
	
EFI Global

	
17
	
1096
	
Sears
	
Pensacola
	
FL
	
 
	
II
	
EFI Global

	
18
	
1101
	
Sears
	
Overland Pk
	
KS
	
 
	
II
	
EFI Global

	
19
	
1103
	
Sears
	
Albany
	
NY
	
 
	
II
	
EFI Global

	
20
	
1108
	
Sears
	
Temecula
	
CA
	
 
	
II
	
EFI Global

	
21
	
1119
	
Sears
	
Happy Valley
	
OR
	
 
	
II
	
EFI Global

	
22
	
1122
	
Sears
	
Maplewood
	
MN
	
 
	
II
	
EFI Global

	
23
	
1127
	
Sears
	
Shepherd
	
TX
	
 
	
II
	
EFI Global

	
24
	
1132
	
Sears
	
Burnsville
	
MN
	
 
	
II
	
EFI Global

	
25
	
1146
	
Sears
	
Cordova
	
TN
	
 
	
II
	
Bock & Clark

	
26
	
1148
	
Sears
	
Ventura
	
CA
	
 
	
II
	
EFI Global

	
27
	
1156
	
Sears
	
Roseville
	
CA
	
 
	
II
	
Bock & Clark

	
28
	
1159
	
Sears
	
Fairfield
	
CA
	
 
	
II
	
EFI Global

	
29
	
1167
	
Sears
	
San Antonio
	
TX
	
 
	
II
	
EFI Global

	
30
	
1168
	
Sears
	
North Hollywood
	
CA
	
 
	
II
	
EFI Global

	
*
	
Property Reserves represent 110% of Immediate Repair costs

 

Schedule 10.1 Deferred Maintenance - 1

 

	
 
	
Site
	
Type
	
City
	
State
	
Property

Reserves*
	
Property

Type
	
Firm Preparing

Report

	
31
	
1178
	
Sears
	
Santa Monica
	
CA
	
[**]
	
I
	
EFI Global

	
32
	
1185
	
Sears
	
Asheville
	
NC
	
 
	
II
	
EFI Global

	
33
	
1186
	
Sears
	
Memphis
	
TN
	
 
	
I
	
EFI Global

	
34
	
1189
	
Sears
	
West Covina
	
CA
	
 
	
II
	
EFI Global

	
35
	
1193
	
Sears
	
Waterford
	
CT
	
 
	
II
	
EFI Global

	
36
	
1197
	
Sears
	
Westwood
	
TX
	
 
	
II
	
EFI Global

	
37
	
1206
	
Sears
	
North Little Rock
	
AR
	
 
	
II
	
EFI Global

	
38
	
1208
	
Sears
	
Fresno
	
CA
	
 
	
II
	
Bock & Clark

	
39
	
1212
	
Sears
	
North Riverside
	
IL
	
 
	
II
	
EFI Global

	
40
	
1220
	
Sears
	
Toledo
	
OH
	
 
	
II
	
EFI Global

	
41
	
1225
	
Sears
	
Orlando
	
FL
	
 
	
I
	
EFI Global

	
42
	
1227
	
Sears
	
Dallas
	
TX
	
 
	
II
	
EFI Global

	
43
	
1229
	
Sears
	
Boise
	
ID
	
 
	
II
	
EFI Global

	
44
	
1250
	
Sears
	
Lincoln Park
	
MI
	
 
	
II
	
EFI Global

	
45
	
1257
	
Sears
	
Friendswood
	
TX
	
 
	
II
	
EFI Global

	
46
	
1264
	
Sears
	
Hicksville
	
NY
	
 
	
I
	
EFI Global

	
47
	
1265
	
Sears
	
Virginia Beach
	
VA
	
 
	
II
	
EFI Global

	
48
	
1277
	
Sears
	
Ingram
	
TX
	
 
	
II
	
EFI Global

	
49
	
1284
	
Sears
	
Alexandria
	
VA
	
 
	
II
	
EFI Global

	
50
	
1294
	
Sears
	
Watchung
	
NJ
	
 
	
I
	
EFI Global

	
51
	
1295
	
Sears
	
St. Petersburg
	
FL
	
 
	
I
	
Bock & Clark

	
52
	
1298
	
Sears
	
Riverside
	
CA
	
 
	
II
	
Bock & Clark

	
53
	
1305
	
Sears
	
Savannah
	
GA
	
 
	
I
	
EFI Global

	
54
	
1313
	
Sears
	
Nashua
	
NH
	
 
	
II
	
EFI Global

	
55
	
1325
	
Sears
	
Charleston
	
SC
	
 
	
II
	
EFI Global

	
56
	
1338
	
Sears
	
Tucson
	
AZ
	
 
	
II
	
EFI Global

	
57
	
1345
	
Sears
	
Hialeah
	
FL
	
 
	
II
	
EFI Global

	
58
	
1347
	
Sears
	
Lafayette
	
LA
	
 
	
II
	
EFI Global

	
59
	
1350
	
Sears
	
Mentor
	
OH
	
 
	
II
	
EFI Global

	
60
	
1355
	
Sears
	
Altamonte Springs
	
FL
	
 
	
II
	
EFI Global

	
61
	
1358
	
Sears
	
Chula Vista
	
CA
	
 
	
II
	
EFI Global

	
62
	
1365
	
Sears
	
Miami
	
FL
	
 
	
I
	
EFI Global

	
63
	
1380
	
Sears
	
Chicago
	
IL
	
 
	
II
	
EFI Global

	
64
	
1385
	
Sears
	
Atlanta
	
GA
	
 
	
II
	
EFI Global

	
65
	
1398
	
Sears
	
San Bernardino
	
CA
	
 
	
I
	
Bock & Clark

	
66
	
1408
	
Sears
	
Florin
	
CA
	
 
	
II
	
Bock & Clark

	
67
	
1410
	
Sears
	
Canton
	
OH
	
 
	
II
	
EFI Global

	
68
	
1415
	
Sears
	
Clearwater
	
FL
	
 
	
II
	
Bock & Clark

	
*
	
Property Reserves represent 110% of Immediate Repair costs

 

Schedule 10.1 Deferred Maintenance - 2

 

	
 
	
Site
	
Type
	
City
	
State
	
Property

Reserves*
	
Property

Type
	
Firm Preparing

Report

	
69
	
1430
	
Sears
	
Middleburg Heights
	
OH
	
[**]
	
II
	
EFI Global

	
70
	
1434
	
Sears
	
Wayne
	
NJ
	
 
	
II
	
EFI Global

	
71
	
1438
	
Sears
	
El Cajon
	
CA
	
 
	
II
	
EFI Global

	
72
	
1450
	
Sears
	
Roseville
	
MI
	
 
	
II
	
EFI Global

	
73
	
1478
	
Sears
	
San Bruno
	
CA
	
 
	
II
	
Bock & Clark

	
74
	
1488
	
Sears
	
San Jose
	
CA
	
 
	
II
	
Bock & Clark

	
75
	
1490
	
Sears
	
Troy
	
MI
	
 
	
II
	
EFI Global

	
76
	
1495
	
Sears
	
Ft. Myers
	
FL
	
 
	
II
	
EFI Global

	
77
	
1508
	
Sears
	
Northridge
	
CA
	
 
	
II
	
EFI Global

	
78
	
1520
	
Sears
	
Chapel Hill
	
OH
	
 
	
II
	
EFI Global

	
79
	
1524
	
Sears
	
Rochester
	
NY
	
 
	
II
	
Bock & Clark

	
80
	
1535
	
Sears
	
Plantation
	
FL
	
 
	
II
	
Bock & Clark

	
81
	
1538
	
Sears
	
Citrus Heights
	
CA
	
 
	
II
	
Bock & Clark

	
82
	
1560
	
Sears
	
Dayton
	
OH
	
 
	
II
	
EFI Global

	
83
	
1568
	
Sears
	
Carson
	
CA
	
 
	
II
	
EFI Global

	
84
	
1574
	
Sears
	
Middletown
	
NJ
	
 
	
I
	
EFI Global

	
85
	
1575
	
Sears
	
Hampton
	
VA
	
 
	
II
	
EFI Global

	
86
	
1584
	
Sears
	
Victor
	
NY
	
 
	
II
	
Bock & Clark

	
87
	
1608
	
Sears
	
Westminster
	
CA
	
 
	
I
	
EFI Global

	
88
	
1615
	
Sears
	
Chesapeake
	
VA
	
 
	
II
	
EFI Global

	
89
	
1623
	
Sears
	
Clay
	
NY
	
 
	
II
	
EFI Global

	
90
	
1625
	
Sears
	
Sarasota
	
FL
	
 
	
II
	
Bock & Clark

	
91
	
1645
	
Sears
	
Boca Raton
	
FL
	
 
	
I
	
EFI Global

	
92
	
1648
	
Sears
	
San Diego
	
CA
	
 
	
II
	
EFI Global

	
93
	
1655
	
Sears
	
Miami
	
FL
	
 
	
I
	
EFI Global

	
94
	
1665
	
Sears
	
Gainesville
	
FL
	
 
	
II
	
EFI Global

	
95
	
1668
	
Sears
	
Las Vegas
	
NV
	
 
	
II
	
Bock & Clark

	
96
	
1688
	
Sears
	
Salinas
	
CA
	
 
	
II
	
Bock & Clark

	
97
	
1698
	
Sears
	
Newark
	
CA
	
 
	
II
	
Bock & Clark

	
98
	
1708
	
Sears
	
Phoenix
	
AZ
	
 
	
II
	
EFI Global

	
99
	
1715
	
Sears
	
Doral
	
FL
	
 
	
II
	
EFI Global

	
100
	
1740
	
Sears
	
Joliet
	
IL
	
 
	
II
	
EFI Global

	
101
	
1748
	
Sears
	
Montclair
	
CA
	
 
	
II
	
EFI Global

	
102
	
1750
	
Sears
	
Orland Park
	
IL
	
 
	
II
	
EFI Global

	
103
	
1784
	
Sears
	
Johnson City
	
NY
	
 
	
II
	
EFI Global

	
104
	
1794
	
Sears
	
East Northport
	
NY
	
 
	
II
	
EFI Global

	
105
	
1814
	
Sears
	
Fairfax
	
VA
	
 
	
II
	
EFI Global

	
*
	
Property Reserves represent 110% of Immediate Repair costs

 

Schedule 10.1 Deferred Maintenance - 3

 

	
 
	
Site
	
Type
	
City
	
State
	
Property

Reserves*
	
Property

Type
	
Firm Preparing

Report

	
106
	
1830
	
Sears
	
Ft. Wayne
	
IN
	
[**]
	
II
	
Bock & Clark

	
107
	
1847
	
Sears
	
Austin
	
TX
	
 
	
II
	
EFI Global

	
108
	
1864
	
Sears
	
Cockeysville
	
MD
	
 
	
II
	
EFI Global

	
109
	
1868
	
Sears
	
Moreno Valley
	
CA
	
 
	
II
	
EFI Global

	
110
	
1884
	
Not Applicable
	
King of Prussia
	
PA
	
 
	
III
	
Bock & Clark

	
111
	
1888
	
Sears
	
West Jordan
	
UT
	
 
	
II
	
EFI Global

	
112
	
1925
	
Sears
	
Carolina
	
PR
	
 
	
II
	
EFI Global

	
113
	
1944
	
Sears
	
Yorktown Heights
	
NY
	
 
	
II
	
EFI Global

	
114
	
1955
	
Sears
	
Lakeland
	
FL
	
 
	
II
	
Bock & Clark

	
115
	
1968
	
Sears
	
Palm Desert
	
CA
	
 
	
II
	
Bock & Clark

	
116
	
1978
	
Sears
	
Reno
	
NV
	
 
	
II
	
Bock & Clark

	
117
	
1988
	
Sears
	
El Centro
	
CA
	
 
	
II
	
Bock & Clark

	
118
	
2034
	
Sears
	
Bowie
	
MD
	
 
	
II
	
EFI Global

	
119
	
2047
	
Sears
	
Sierra Vista
	
AZ
	
 
	
II
	
EFI Global

	
120
	
2050
	
Sears
	
Jackson
	
MI
	
 
	
II
	
Bock & Clark

	
121
	
2068
	
Sears
	
Visalia
	
CA
	
 
	
II
	
Bock & Clark

	
122
	
2078
	
Sears
	
Yuma
	
AZ
	
 
	
II
	
EFI Global

	
123
	
2088
	
Sears
	
Santa Maria
	
CA
	
 
	
II
	
EFI Global

	
124
	
2147
	
Sears
	
Irving
	
TX
	
 
	
II
	
EFI Global

	
125
	
2176
	
Sears
	
Paducah
	
KY
	
 
	
II
	
Bock & Clark

	
126
	
2212
	
Sears
	
Cedar Rapids
	
IA
	
 
	
II
	
EFI Global

	
127
	
2218
	
Sears
	
Prescott
	
AZ
	
 
	
II
	
EFI Global

	
128
	
2239
	
Sears
	
Vancouver
	
WA
	
 
	
II
	
EFI Global

	
129
	
2245
	
Sears
	
Melbourne
	
FL
	
 
	
II
	
EFI Global

	
130
	
2298
	
Sears
	
Merced
	
CA
	
 
	
II
	
Bock & Clark

	
131
	
2308
	
Sears
	
Santa Cruz
	
CA
	
 
	
II
	
Bock & Clark

	
132
	
2318
	
Sears
	
Thousand Oaks
	
CA
	
 
	
II
	
Bock & Clark

	
133
	
2358
	
Sears
	
Flagstaff
	
AZ
	
 
	
II
	
EFI Global

	
134
	
2382
	
Sears
	
Madison
	
WI
	
 
	
II
	
Bock & Clark

	
135
	
2443
	
Sears
	
Manchester
	
NH
	
 
	
II
	
EFI Global

	
136
	
2514
	
Sears
	
Warrenton
	
VA
	
 
	
II
	
EFI Global

	
137
	
2565
	
Sears
	
Bradenton
	
FL
	
 
	
II
	
Bock & Clark

	
138
	
2663
	
Sears
	
Portsmouth
	
NH
	
 
	
II
	
EFI Global

	
139
	
2695
	
Sears
	
Naples
	
FL
	
 
	
II
	
EFI Global

	
140
	
2805
	
Sears
	
Panama City
	
FL
	
 
	
II
	
EFI Global

	
141
	
2945
	
Sears
	
Hagerstown
	
MD
	
 
	
II
	
EFI Global

	
142
	
3142
	
Kmart
	
Tallmadge
	
OH
	
 
	
II
	
EFI Global

	
143
	
3180
	
Kmart
	
Merrillville
	
IN
	
 
	
II
	
Bock & Clark

	
*
	
Property Reserves represent 110% of Immediate Repair costs

 

Schedule 10.1 Deferred Maintenance - 4

 

	
 
	
Site
	
Type
	
City
	
State
	
Property

Reserves*
	
Property

Type
	
Firm Preparing

Report

	
144
	
3238
	
Not Applicable
	
Tulsa
	
OK
	
[**]
	
III
	
EFI Global

	
145
	
3241
	
Kmart
	
Springfield
	
IL
	
 
	
II
	
EFI Global

	
146
	
3243
	
Kmart
	
North Canton
	
OH
	
 
	
II
	
EFI Global

	
147
	
3320
	
Kmart
	
Houma
	
LA
	
 
	
II
	
EFI Global

	
148
	
3353
	
Not Applicable
	
Orange Park
	
FL
	
 
	
III
	
Bock & Clark

	
149
	
3556
	
Kmart
	
Elkhart
	
IN
	
 
	
II
	
Bock & Clark

	
150
	
3579
	
Not Applicable
	
Springfield
	
MO
	
 
	
III
	
Bock & Clark

	
151
	
3594
	
Kmart
	
Chicago
	
IL
	
 
	
II
	
EFI Global

	
152
	
3678
	
Kmart
	
Ramona
	
CA
	
 
	
II
	
EFI Global

	
153
	
3695
	
Kmart
	
Sierra Vista
	
AZ
	
 
	
II
	
EFI Global

	
154
	
3724
	
Kmart
	
Scott Depot
	
WV
	
 
	
II
	
Bock & Clark

	
155
	
3775
	
Kmart
	
Detroit Lakes
	
MN
	
 
	
II
	
EFI Global

	
156
	
3814
	
Kmart
	
Kearney
	
NE
	
 
	
II
	
Bock & Clark

	
157
	
3877
	
Kmart
	
Elkins
	
WV
	
 
	
II
	
Bock & Clark

	
158
	
3879
	
Kmart
	
Braintree
	
MA
	
 
	
I
	
EFI Global

	
159
	
3882
	
Kmart
	
Mayaguez
	
PR
	
 
	
II
	
EFI Global

	
160
	
3888
	
Kmart
	
The Dalles
	
OR
	
 
	
II
	
EFI Global

	
161
	
3911
	
Kmart
	
Columbia
	
PA
	
 
	
II
	
EFI Global

	
162
	
3945
	
Kmart
	
Delano
	
CA
	
 
	
II
	
Bock & Clark

	
163
	
3954
	
Kmart
	
Walnutport
	
PA
	
 
	
II
	
Bock & Clark

	
164
	
3970
	
Kmart
	
Platteville
	
WI
	
 
	
II
	
Bock & Clark

	
165
	
4106
	
Not Applicable
	
Ypsilanti
	
MI
	
 
	
III
	
Bock & Clark

	
166
	
4177
	
Kmart
	
St. Clair Shores
	
MI
	
 
	
I
	
EFI Global

	
167
	
4188
	
Kmart
	
Charleston
	
WV
	
 
	
II
	
Bock & Clark

	
168
	
4205
	
Kmart
	
El Paso
	
TX
	
 
	
II
	
EFI Global

	
169
	
4292
	
Kmart
	
Hialeah
	
FL
	
 
	
II
	
EFI Global

	
170
	
4295
	
Kmart
	
North Miami
	
FL
	
 
	
I
	
EFI Global

	
171
	
4297
	
Kmart
	
Moline
	
IL
	
 
	
II
	
Bock & Clark

	
172
	
4304
	
Kmart
	
Florissant
	
MO
	
 
	
II
	
EFI Global

	
173
	
4313
	
Kmart
	
York
	
PA
	
 
	
II
	
EFI Global

	
174
	
4353
	
Kmart
	
Minot
	
ND
	
 
	
II
	
Bock & Clark

	
175
	
4355
	
Kmart
	
St. Petersburg
	
FL
	
 
	
II
	
Bock & Clark

	
176
	
4432
	
Kmart
	
Riverside
	
CA
	
 
	
II
	
Bock & Clark

	
177
	
4439
	
Kmart
	
Yakima
	
WA
	
 
	
II
	
EFI Global

	
178
	
4736
	
Kmart
	
Casper
	
WY
	
 
	
II
	
Bock & Clark

	
179
	
4758
	
Kmart
	
Concord
	
NC
	
 
	
II
	
EFI Global

	
180
	
4762
	
Kmart
	
Antioch
	
CA
	
 
	
II
	
EFI Global

	
181
	
4814
	
Kmart
	
Havre
	
MT
	
 
	
II
	
Bock & Clark

	
*
	
Property Reserves represent 110% of Immediate Repair costs

 

Schedule 10.1 Deferred Maintenance - 5

 

	
 
	
Site
	
Type
	
City
	
State
	
Property

Reserves*
	
Property

Type
	
Firm Preparing

Report

	
182
	
4837
	
Kmart
	
Riverton
	
WY
	
[**]
	
II
	
Bock & Clark

	
183
	
4845
	
Kmart
	
Manistee
	
MI
	
 
	
II
	
EFI Global

	
184
	
4863
	
Kmart
	
Gillette
	
WY
	
 
	
II
	
Bock & Clark

	
185
	
4917
	
Kmart
	
Thornton
	
CO
	
 
	
II
	
Bock & Clark

	
186
	
4956
	
Not Applicable
	
Greensboro
	
NC
	
 
	
III
	
Bock & Clark

	
187
	
7003
	
Kmart
	
Muskogee
	
OK
	
 
	
II
	
EFI Global

	
188
	
7016
	
Kmart
	
Hobbs
	
NM
	
 
	
II
	
Bock & Clark

	
189
	
7018
	
Kmart
	
Jefferson City
	
MO
	
 
	
II
	
EFI Global

	
190
	
7021
	
Kmart
	
Cape Girardeau
	
MO
	
 
	
II
	
EFI Global

	
191
	
7035
	
Kmart
	
Farmington
	
NM
	
 
	
II
	
EFI Global

	
192
	
7043
	
Kmart
	
Rock Hill
	
SC
	
 
	
II
	
EFI Global

	
193
	
7061
	
Kmart
	
New Iberia
	
LA
	
 
	
II
	
EFI Global

	
194
	
7077
	
Kmart
	
Harlingen
	
TX
	
 
	
II
	
EFI Global

	
195
	
7233
	
Kmart
	
Kissimmee
	
FL
	
 
	
II
	
EFI Global

	
196
	
7289
	
Kmart
	
Steger
	
IL
	
 
	
II
	
EFI Global

	
197
	
7318
	
Kmart
	
Sioux Falls
	
SD
	
 
	
II
	
Bock & Clark

	
198
	
7321
	
Kmart
	
Bradenton
	
FL
	
 
	
II
	
Bock & Clark

	
199
	
7390
	
Kmart
	
McKinleyville
	
CA
	
 
	
II
	
Bock & Clark

	
200
	
7416
	
Not Applicable
	
Homewood
	
IL
	
 
	
III
	
Bock & Clark

	
201
	
7426
	
Kmart
	
Layton
	
UT
	
 
	
II
	
EFI Global

	
202
	
7430
	
Kmart
	
Owensboro
	
KY
	
 
	
II
	
Bock & Clark

	
203
	
7477
	
Kmart
	
Marietta
	
OH
	
 
	
II
	
EFI Global

	
204
	
7480
	
Kmart
	
Honolulu
	
HI
	
 
	
I
	
EFI Global

	
205
	
7607
	
Kmart
	
Hopkinsville
	
KY
	
 
	
II
	
Bock & Clark

	
206
	
7639
	
Kmart
	
Santa Paula
	
CA
	
 
	
II
	
Bock & Clark

	
207
	
7653
	
Kmart
	
Big Bear Lake
	
CA
	
 
	
II
	
Bock & Clark

	
208
	
7676
	
Kmart
	
Sidney
	
NY
	
 
	
II
	
Bock & Clark

	
209
	
7695
	
Kmart
	
Olean
	
NY
	
 
	
II
	
Bock & Clark

	
210
	
7699
	
Kmart
	
Lebanon
	
PA
	
 
	
II
	
EFI Global

	
211
	
7713
	
Kmart
	
Edgewater
	
MD
	
 
	
II
	
EFI Global

	
212
	
7719
	
Kmart
	
Columbus
	
MS
	
 
	
II
	
EFI Global

	
213
	
7725
	
Kmart
	
Rehoboth Beach
	
DE
	
 
	
II
	
EFI Global

	
214
	
7733
	
Kmart
	
Alpena
	
MI
	
 
	
II
	
Bock & Clark

	
215
	
7736
	
Kmart
	
Kenton
	
OH
	
 
	
II
	
EFI Global

	
216
	
7741
	
Kmart
	
Ponce
	
PR
	
 
	
II
	
EFI Global

	
217
	
7746
	
Kmart
	
Carlisle
	
PA
	
 
	
II
	
EFI Global

	
218
	
7754
	
Kmart
	
Anderson
	
SC
	
 
	
II
	
EFI Global

	
*
	
Property Reserves represent 110% of Immediate Repair costs

 

Schedule 10.1 Deferred Maintenance - 6

 

	
 
	
Site
	
Type
	
City
	
State
	
Property

Reserves*
	
Property

Type
	
Firm Preparing

Report

	
219
	
7755
	
Kmart
	
Deming
	
NM
	
[**]
	
II
	
Bock & Clark

	
220
	
7767
	
Kmart
	
Charles City
	
IA
	
 
	
II
	
EFI Global

	
221
	
7768
	
Kmart
	
Guaynabo
	
PR
	
 
	
II
	
EFI Global

	
222
	
7788
	
Kmart
	
Bayamon
	
PR
	
 
	
II
	
EFI Global

	
223
	
9220
	
Kmart
	
Algona
	
IA
	
 
	
II
	
EFI Global

	
224
	
9309
	
Kmart
	
Webster City
	
IA
	
 
	
II
	
EFI Global

	
225
	
9406
	
Not Applicable
	
Peoria
	
AZ
	
 
	
III
	
Bock & Clark

	
226
	
9521
	
Kmart
	
Madawaska
	
ME
	
 
	
II
	
EFI Global

	
227
	
9571
	
Kmart
	
Cullman
	
AL
	
 
	
II
	
EFI Global

	
228
	
9586
	
Kmart
	
Sault Ste. Marie
	
MI
	
 
	
II
	
Bock & Clark

	
229
	
9647
	
Kmart
	
Leavenworth*
	
KS
	
 
	
II
	
EFI Global

	
230
	
9711
	
Kmart
	
Russellville
	
AR
	
 
	
II
	
EFI Global

	
231
	
9770
	
Kmart
	
Mount Pleasant
	
PA
	
 
	
II
	
Bock & Clark

	
232
	
9819
	
Kmart
	
Henderson
	
NV
	
 
	
II
	
Bock & Clark

	
233
	
9825
	
Not Applicable
	
Phoenix
	
AZ
	
 
	
III
	
Bock & Clark

	
234
	
61907
	
Not Applicable
	
Lombard
	
IL
	
 
	
III
	
Bock & Clark

	
235
	
61916
	
Not Applicable
	
Houston
	
TX
	
 
	
III
	
Bock & Clark

	
TOTAL
	
 
	
 
	
 

 

 

 

	
*
	
Property Reserves represent 110% of Immediate Repair costs

 

Schedule 10.1 Deferred Maintenance - 7

 

Schedule 20.3

REIT Environmental Cost Estimation Summary

 

	
SEARS

or

KMART 

UNIT 

NUMBER
	
City
	
State
	
Firm

Performing

Due

Diligence
	
Phase I

Complet ed

(Y/N)
	
Phase II

Complet ed

(Y/N)
	
Notes and Conditions of

Environmental Issues

Identified (For more detail,

refer to the Phase I and II

Environmental Site

Assessment Reports for each

location)
	
Anticipated Scope of Work 

to Address

Environmental Issues
	
Estimated

Date to

Begin

Remedial

Efforts (To

begin

Within

either 3 or 6

months Post

Closing)
	
Projected

Duration in

Months of

Remedial Efforts 

Based

on Data

Compiled to

Date (Duration May

Vary

Pending

Approved

SOW)
	
Potential 

Delays

or other

Assumptions

1,2,3,4
	
As 

discussed

between 

Sears,

H2 and 

EBI

(H2's

Consultant)

	
1003
	
Salem
	
NH
	
BBJ Group
	
YES
	
YES
	
[**]
	
3 months
	
12
	
[**]

	
1052
	
St Paul
	
MN
	
Terracon
	
YES
	
YES
	
 
	
 
	
6 months
	
40
	
 
	
 

	
1053
	
Saugus
	
MA
	
BBJ Group
	
YES
	
YES
	
 
	
 
	
3 months
	
12
	
 
	
 

	
1057
	
Valley View
	
TX
	
Terracon
	
YES
	
YES
	
 
	
 
	
6 months
	
22
	
 
	
 

	
1067
	
Memorial
	
TX
	
Terracon
	
YES
	
YES
	
 
	
 
	
6 months
	
22
	
 
	
 

	
1069
	
Redmond- Overlake Pk
	
WA
	
Terracon
	
YES
	
YES
	
 
	
 
	
6 months
	
36
	
 
	
 

	
1082
	
Greendale
	
WI
	
Terracon
	
YES
	
YES
	
 
	
 
	
3 months
	
22
	
 
	
 

	
1083
	
Warwick
	
RI
	
BBJ Group
	
YES
	
YES
	
 
	
 
	
3 months
	
18
	
 
	
 

	
1090
	
Chicago
	
IL
	
Terracon
	
YES
	
YES
	
 
	
 
	
6 months
	
30
	
 
	
 

	
1091
	
Oklahoma City/Sequoyah
	
OK
	
Terracon
	
YES
	
YES
	
 
	
 
	
6 months
	
40
	
 
	
 

	
1096
	
Pensacola
	
FL
	
AECOM
	
YES
	
YES
	
 
	
 
	
3 months
	
6
	
 
	
 

	
1101
	
Overland Park
	
KS
	
Terracon
	
YES
	
YES
	
 
	
 
	
3 months
	
12
	
 
	
 

	
1103
	
Albany
	
NY
	
BBJ Group
	
YES
	
YES
	
 
	
 
	
3 months
	
6
	
 
	
 

	
1108
	
Temecula
	
CA
	
Terracon
	
YES
	
YES
	
 
	
 
	
3 months
	
6
	
 
	
 

	
1122
	
Maplewood
	
MN
	
Terracon
	
YES
	
YES
	
 
	
 
	
6 months
	
18
	
 
	
 

	
1127
	
Shepherd
	
TX
	
Terracon
	
YES
	
YES
	
 
	
 
	
3 months
	
9
	
 
	
 

	
1132
	
Burnsville
	
MN
	
Terracon
	
YES
	
YES
	
 
	
 
	
3 months
	
22
	
 
	
 

	
1159
	
Fairfield
	
CA
	
Terracon
	
YES
	
YES
	
 
	
 
	
3 months
	
12
	
 
	
 

	
1167
	
San Antonio Central Park
	
TX
	
AECOM
	
YES
	
YES
	
 
	
 
	
6 months
	
30
	
 
	
 

	
1168
	
No Hollywood
	
CA
	
Terracon
	
YES
	
YES
	
 
	
 
	
6 months
	
22
	
 
	
 

	
1185
	
Asheville
	
NC
	
AECOM
	
YES
	
YES
	
 
	
 
	
6 months
	
40
	
 
	
 

	
1186
	
Memphis/Popl
	
TN
	
Terracon
	
YES
	
YES
	
 
	
 
	
3 months
	
6
	
 
	
 

	
1193
	
Waterford
	
CT
	
BBJ Group
	
YES
	
YES
	
 
	
3 months
	
6
	
 
	
 

	
1206
	
North Little Rock
	
AR
	
AECOM
	
YES
	
YES
	
 
	
 
	
6 months
	
30
	
 
	
 

	
1208
	
Fresno
	
CA
	
Terracon
	
YES
	
YES
	
 
	
 
	
3 months
	
8
	
 
	
 

Schedule 20.3 REIT Environmental Cost Estimation Summary - 1

 

	
SEARS

or

KMART 

UNIT 

NUMBER
	
City
	
State
	
Firm

Performing

Due

Diligence
	
Phase I

Complet ed

(Y/N)
	
Phase II

Complet ed

(Y/N)
	
Notes and Conditions of

Environmental Issues

Identified (For more detail,

refer to the Phase I and II

Environmental Site

Assessment Reports for each

location)
	
Anticipated Scope of Work 

to Address

Environmental Issues
	
Estimated

Date to

Begin

Remedial

Efforts (To

begin

Within

either 3 or 6

months Post

Closing)
	
Projected

Duration in

Months of

Remedial Efforts 

Based

on Data

Compiled to

Date (Duration May

Vary

Pending

Approved

SOW)
	
Potential 

Delays

or other

Assumptions

1,2,3,4
	
As 

discussed

between 

Sears,

H2 and 

EBI

(H2's

Consultant)

	
1212
	
North Riverside
	
IL
	
Terracon
	
YES
	
YES
	
[**]
	
3 months
	
6
	
[**]

	
1220
	
Toledo
	
OH
	
Terracon
	
YES
	
YES
	
 
	
 
	
6 months
	
40
	
 
	
 

	
1225
	
Orlando Colonial
	
FL
	
AECOM
	
YES
	
YES
	
 
	
 
	
6 months
	
39
	
 
	
 

	
1227
	
Dallas
	
TX
	
AECOM
	
YES
	
YES
	
 
	
 
	
3 months
	
6
	
 
	
 

	
1229
	
Boise
	
ID
	
Terracon
	
YES
	
YES
	
 
	
 
	
3 months
	
38
	
 
	
 

	
1250
	
Lincoln Park
	
MI
	
Terracon
	
YES
	
YES
	
 
	
 
	
6 months
	
39
	
 
	
 

	
1264
	
Hicksville
	
NY
	
BBJ Group
	
YES
	
YES
	
 
	
 
	
6 months
	
39
	
 
	
 

	
1284
	
Alexandria
	
VA
	
BBJ Group
	
YES
	
YES
	
 
	
 
	
6 months
	
48
	
 
	
 

	
1294
	
Watchung
	
NJ
	
Terracon
	
YES
	
YES
	
 
	
 
	
6 months
	
30
	
 
	
 

	
1295
	
St Petersburg
	
FL
	
AECOM
	
YES
	
YES
	
 
	
 
	
6 months
	
48
	
 
	
 

	
1298
	
Riverside
	
CA
	
Terracon
	
YES
	
YES
	
 
	
 
	
6 months
	
39
	
 
	
 

	
1325
	
Charleston/

No rthwoods
	
SC
	
AECOM
	
YES
	
YES
	
 
	
 
	
3 months
	
18
	
 
	
 

	
1345
	
Hialeah
	
FL
	
AECOM
	
YES
	
YES
	
 
	
 
	
6 months
	
48
	
 
	
 

	
1347
	
Lafayette
	
LA
	
AECOM
	
YES
	
YES
	
 
	
 
	
3 months
	
26
	
 
	
 

	
1350
	
Mentor
	
OH
	
Terracon
	
YES
	
YES
	
 
	
 
	
6 months
	
39
	
 
	
 

	
1358
	
Chula Vista
	
CA
	
Terracon
	
YES
	
YES
	
 
	
 
	
3 months
	
20
	
 
	
 

	
1365
	
Miami/

Southla nd
	
FL
	
AECOM
	
YES
	
YES
	
 
	
 
	
6 months
	
39
	
 
	
 

	
1380
	
Chicago
	
IL
	
Terracon
	
YES
	
YES
	
 
	
 
	
6 months
	
35
	
 
	
 

	
1385
	
Atlanta
	
GA
	
AECOM
	
YES
	
YES
	
 
	
 
	
3 months
	
6
	
 
	
 

	
1408
	
Sacramento
	
CA
	
Terracon
	
YES
	
YES
	
 
	
 
	
6 months
	
35
	
 
	
 

	
1434
	
Wayne
	
NJ
	
Terracon
	
YES
	
YES
	
 
	
 
	
3 months
	
20
	
 
	
 

	
1450
	
Roseville
	
MI
	
Terracon
	
YES
	
YES
	
 
	
 
	
6 months
	
35
	
 
	
 

	
1478
	
San Bruno
	
CA
	
Terracon
	
YES
	
YES
	
 
	
 
	
3 months
	
100
	
 
	
 

	
1488
	
San Jose
	
CA
	
Terracon
	
YES
	
YES
	
 
	
 
	
6 months
	
40
	
 
	
 

	
1490
	
Troy
	
MI
	
Terracon
	
YES
	
YES
	
 
	
 
	
6 months
	
40
	
 
	
 

	
1495
	
Ft Myers
	
FL
	
AECOM
	
YES
	
YES
	
 
	
6 months
	
35
	
 
	
 

	
1508
	
Northridge
	
CA
	
Terracon
	
YES
	
YES
	
 
	
 
	
6 months
	
30
	
 
	
 

	
1520
	
Akron
	
OH
	
Terracon
	
YES
	
YES
	
 
	
 
	
6 months
	
30
	
 
	
 

	
1524
	
Rochester
	
NY
	
BBJ Group
	
YES
	
YES
	
 
	
 
	
6 months
	
30
	
 
	
 

	
1535
	
Plantation
	
FL
	
AECOM
	
YES
	
YES
	
 
	
6 months
	
28
	
 

	
1538
	
Citrus Hts
	
CA
	
Terracon
	
YES
	
YES
	
 
	
 
	
3 months
	
20
	
 
	
 

Schedule 20.3 REIT Environmental Cost Estimation Summary - 2

 

	
SEARS

or

KMART 

UNIT 

NUMBER
	
City
	
State
	
Firm

Performing

Due

Diligence
	
Phase I

Complet ed

(Y/N)
	
Phase II

Complet ed

(Y/N)
	
Notes and Conditions of

Environmental Issues

Identified (For more detail,

refer to the Phase I and II

Environmental Site

Assessment Reports for each

location)
	
Anticipated Scope of Work 

to Address

Environmental Issues
	
Estimated

Date to

Begin

Remedial

Efforts (To

begin

Within

either 3 or 6

months Post

Closing)
	
Projected

Duration in

Months of

Remedial Efforts 

Based

on Data

Compiled to

Date (Duration May

Vary

Pending

Approved

SOW)
	
Potential 

Delays

or other

Assumptions

1,2,3,4
	
As 

discussed

between 

Sears,

H2 and 

EBI

(H2's

Consultant)

	
1568
	
Carson
	
CA
	
Terracon
	
YES
	
YES
	
[**]
	
6 months
	
28
	
[**]

	
1574
	
Middletown
	
NJ
	
BBJ Group
	
YES
	
YES
	
 
	
 
	
3 months
	
20
	
 
	
 

	
1584
	
Victor
	
NY
	
BBJ Group
	
YES
	
YES
	
 
	
 
	
3 months
	
6
	
 
	
 

	
1608
	
Westminster
	
CA
	
Terracon
	
YES
	
YES
	
 
	
 
	
3 months
	
26
	
 
	
 

	
1645
	
Boca Raton
	
FL
	
Terracon
	
YES
	
YES
	
 
	
 
	
3 months
	
6
	
 
	
 

	
1648
	
San Diego- North
	
CA
	
Terracon
	
YES
	
YES
	
 
	
 
	
3 months
	
22
	
 
	
 

	
1655
	
Miami/Aventu ra
	
FL
	
Terracon
	
YES
	
YES
	
 
	
 
	
6 months
	
26
	
 
	
 

	
1665
	
Gainesville
	
FL
	
AECOM
	
YES
	
YES
	
 
	
 
	
3 months
	
10
	
 
	
 

	
1668
	
Las   Vegas/Meado ws
	
NV
	
Terracon
	
YES
	
YES
	
 
	
 
	
3 months
	
6
	
 
	
 

	
1698
	
Newark
	
CA
	
Terracon
	
YES
	
YES
	
 
	
 
	
6 months
	
32
	
 
	
 

	
1708
	
Phoenix
	
AZ
	
Terracon
	
YES
	
YES
	
 
	
 
	
3 months
	
10
	
 
	
 

	
1715
	
Miami/Doral
	
FL
	
AECOM
	
YES
	
YES
	
 
	
 
	
6 months
	
30
	
 
	
 

	
1740
	
Joliet
	
IL
	
Terracon
	
YES
	
YES
	
 
	
 
	
6 months
	
34
	
 
	
 

	
1750
	
Orland Park
	
IL
	
Terracon
	
YES
	
YES
	
 
	
 
	
3 months
	
10
	
 
	
 

	
1784
	
Johnson City
	
NY
	
BBJ Group
	
YES
	
YES
	
 
	
 
	
3 months
	
6
	
 
	
 

	
1794
	
East Northport
	
NY
	
BBJ Group
	
YES
	
YES
	
 
	
 
	
3 months
	
6
	
 
	
 

	
1884
	
King Of Prussia
	
PA
	
BBJ Group
	
YES
	
YES
	
 
	
 
	
3 months
	
18
	
 
	
 

	
1944
	
Yorktown Heights
	
NY
	
BBJ Group
	
YES
	
YES
	
 
	
 
	
3 months
	
16
	
 
	
 

	
1955
	
Lakeland
	
FL
	
AECOM
	
YES
	
YES
	
 
	
 
	
3 months
	
6
	
 
	
 

	
2034
	
Bowie
	
MD
	
BBJ Group
	
YES
	
YES
	
 
	
 
	
6 months
	
29
	
 
	
 

	
2050
	
Jackson
	
MI
	
Terracon
	
YES
	
YES
	
 
	
3 months
	
6
	
 
	
 

	
2147
	
Irving
	
TX
	
AECOM
	
YES
	
YES
	
 
	
 
	
3 months
	
16
	
 
	
 

	
2176
	
Paducah
	
KY
	
Terracon
	
YES
	
YES
	
 
	
 
	
6 months
	
20
	
 
	
 

	
2245
	
Melbourne
	
FL
	
AECOM
	
YES
	
YES
	
 
	
 
	
6 months
	
34
	
 
	
 

	
2298
	
Merced
	
CA
	
Terracon
	
YES
	
YES
	
 
	
 
	
3 months
	
16
	
 
	
 

	
2308
	
Santa Cruz
	
CA
	
Terracon
	
YES
	
YES
	
 
	
3 months
	
6
	
 

	
2358
	
Flagstaff
	
AZ
	
Terracon
	
YES
	
YES
	
 
	
 
	
3 months
	
10
	
 
	
 

	
2382
	
Madison
	
WI
	
Terracon
	
YES
	
YES
	
 
	
 
	
3 months
	
16
	
 
	
 

	
2443
	
Manchester
	
NH
	
BBJ Group
	
YES
	
YES
	
 
	
3 months
	
18
	
 

	
2565
	
Bradenton
	
FL
	
AECOM
	
YES
	
YES
	
 
	
 
	
6 months
	
28
	
 
	
 

Schedule 20.3 REIT Environmental Cost Estimation Summary - 3

 

	
SEARS

or

KMART 

UNIT 

NUMBER
	
City
	
State
	
Firm

Performing

Due

Diligence
	
Phase I

Complet ed

(Y/N)
	
Phase II

Complet ed

(Y/N)
	
Notes and Conditions of

Environmental Issues

Identified (For more detail,

refer to the Phase I and II

Environmental Site

Assessment Reports for each

location)
	
Anticipated Scope of Work 

to Address

Environmental Issues
	
Estimated

Date to

Begin

Remedial

Efforts (To

begin

Within

either 3 or 6

months Post

Closing)
	
Projected

Duration in

Months of

Remedial Efforts 

Based

on Data

Compiled to

Date (Duration May

Vary

Pending

Approved

SOW)
	
Potential 

Delays

or other

Assumptions

1,2,3,4
	
As 

discussed

between 

Sears,

H2 and 

EBI

(H2's

Consultant)

	
2663
	
Newington/Po rtsmouth
	
NH
	
BBJ Group
	
YES
	
YES
	
[**]
	
3 months
	
6
	
[**]

	
2805
	
Panama City
	
FL
	
AECOM
	
YES
	
YES
	
 
	
 
	
6 months
	
35
	
 
	
 

	
2945
	
Hagerstown
	
MD
	
BBJ Group
	
YES
	
YES
	
 
	
 
	
6 months
	
14
	
 
	
 

	
3238
	
TULSA
	
OK
	
Terracon
	
YES
	
YES
	
 
	
 
	
3 months
	
6
	
 
	
 

	
3243
	
North Canton
	
OH
	
Terracon
	
YES
	
YES
	
 
	
 
	
3 months
	
18
	
 
	
 

	
3353
	
ORANGE PARK
	
FL
	
BBJ Group
	
YES
	
YES
	
 
	
 
	
6 months
	
34
	
 
	
 

	
3594
	
Chicago
	
IL
	
Terracon
	
YES
	
YES
	
 
	
 
	
6 months
	
35
	
 
	
 

	
3877
	
ELKINS
	
WV
	
BBJ Group
	
YES
	
YES
	
 
	
 
	
3 months
	
6
	
 
	
 

	
3911
	
COLUMBIA
	
PA
	
BBJ Group
	
YES
	
YES
	
 
	
 
	
3 months
	
9
	
 
	
 

	
4106
	
YPSILANTI
	
MI
	
BBJ Group
	
YES
	
YES
	
 
	
 
	
3 months
	
6
	
 
	
 

	
4177
	
ST CLAIR SHORES
	
MI
	
Terracon
	
YES
	
YES
	
 
	
 
	
3 months
	
16
	
 
	
 

	
4188
	
CHARLESTO N
	
WV
	
BBJ Group
	
YES
	
YES
	
 
	
 
	
6 months
	
30
	
 
	
 

	
4295
	
NORTH MIAMI
	
FL
	
AECOM
	
YES
	
YES
	
 
	
 
	
3 months
	
30
	
 
	
 

	
4297
	
MOLINE
	
IL
	
Terracon
	
YES
	
YES
	
 
	
 
	
6 months
	
28
	
 
	
 

	
4353
	
MINOT
	
ND
	
Terracon
	
YES
	
YES
	
 
	
 
	
6 months
	
35
	
 
	
 

	
4432
	
RIVERSIDE
	
CA
	
Terracon
	
YES
	
YES
	
 
	
 
	
3 months
	
10
	
 
	
 

	
4758
	
CONCORD
	
NC
	
AECOM
	
YES
	
NO
	
 
	
 
	
3 months
	
6
	
 
	
 

	
4762
	
ANTIOCH
	
CA
	
Terracon
	
YES
	
YES
	
 
	
 
	
6 months
	
35
	
 
	
 

	
4845
	
MANISTEE
	
MI
	
Terracon
	
YES
	
YES
	
 
	
3 months
	
6
	
 
	
 

	
4956
	
GREENSBOR O
	
NC
	
BBJ Group
	
YES
	
YES
	
 
	
 
	
3 months
	
12
	
 
	
 

	
7003
	
MUSKOGEE
	
OK
	
Terracon
	
YES
	
YES
	
 
	
 
	
6 months
	
35
	
 
	
 

	
7016
	
HOBBS
	
NM
	
Terracon
	
YES
	
YES
	
 
	
 
	
3 months
	
22
	
 
	
 

	
7018
	
JEFFERSON CITY
	
MO
	
Terracon
	
YES
	
YES
	
 
	
3 months
	
16
	
 

	
7061
	
NEW IBERIA
	
LA
	
AECOM
	
YES
	
YES
	
 
	
 
	
6 months
	
30
	
 
	
 

	
7077
	
HARLINGEN
	
TX
	
AECOM
	
YES
	
YES
	
 
	
 
	
6 months
	
34
	
 
	
 

	
7289
	
STEGER
	
IL
	
Terracon
	
YES
	
YES
	
 
	
 
	
3 months
	
16
	
 
	
 

	
7321
	
BRADENTO N
	
FL
	
AECOM
	
YES
	
YES
	
 
	
 
	
6 months
	
16
	
 
	
 

	
7416
	
HOMEWOO D
	
IL
	
BBJ Group
	
YES
	
YES
	
 
	
 
	
3 months
	
12
	
 
	
 

	
7430
	
OWENSBOR O
	
KY
	
Terracon
	
YES
	
YES
	
 
	
6 months
	
28
	
 

	
7477
	
Marietta
	
OH
	
Terracon
	
YES
	
NO
	
 
	
 
	
3 months
	
6
	
 
	
 

Schedule 20.3 REIT Environmental Cost Estimation Summary - 4

 

	
SEARS

or

KMART 

UNIT 

NUMBER
	
City
	
State
	
Firm

Performing

Due

Diligence
	
Phase I

Complet ed

(Y/N)
	
Phase II

Complet ed

(Y/N)
	
Notes and Conditions of

Environmental Issues

Identified (For more detail,

refer to the Phase I and II

Environmental Site

Assessment Reports for each

location)
	
Anticipated Scope of Work 

to Address

Environmental Issues
	
Estimated

Date to

Begin

Remedial

Efforts (To

begin

Within

either 3 or 6

months Post

Closing)
	
Projected

Duration in

Months of

Remedial Efforts 

Based

on Data

Compiled to

Date (Duration May

Vary

Pending

Approved

SOW)
	
Potential 

Delays

or other

Assumptions

1,2,3,4
	
As 

discussed

between 

Sears,

H2 and 

EBI

(H2's

Consultant)

	
7653
	
BIG BEAR 

LAKE
	
CA
	
Terracon
	
YES
	
YES
	
[**]
	
6 months
	
35
	
[**]

	
7676
	
SIDNEY
	
NY
	
BBJ Group
	
YES
	
YES
	
 
	
 
	
3 months
	
12
	
 
	
 

	
7733
	
ALPENA
	
MI
	
Terracon
	
YES
	
YES
	
 
	
 
	
6 months
	
28
	
 
	
 

	
7741
	
Ponce
	
PR
	
AECOM
	
YES
	
NO
	
 
	
 
	
3 months
	
6
	
 
	
 

	
9521
	
MADAWASK A
	
ME
	
BBJ Group
	
YES
	
NO
	
 
	
 
	
3 months
	
6
	
 
	
 

	
9571
	
CULLMAN
	
AL
	
AECOM
	
YES
	
YES
	
 
	
 
	
3 months
	
22
	
 
	
 

	
9819
	
HENDERSO N
	
NV
	
Terracon
	
YES
	
YES
	
 
	
 
	
6 months
	
28
	
 
	
 

	
$12,034,171

 

 

 

Schedule 20.3 REIT Environmental Cost Estimation Summary - 5

 

Notes:

	
1.
	
Regulator Response: To complete the closure process of a reported spill, closure documentation will be submitted to the respective state regulator. Regulator response to reporting and correspondence can vary (sometimes up to 12 months). A delayed response from the respective regulator may delay to closure of a site beyond the anticipated closure date provided above.

	
2
	
Complex Groundwater (GW) Regulation: State environmental regulations can vary from one state to the other; however, it is typical for cleanup guidance of groundwater impacts to be lengthy and more stringent.

	
3
	
Potential Comingling: Two more RECs are identified as having subsurface impacts, as such, the impacts may have comingled making delineation efforts more complex.

	
4
	
Source Identification: COCs identified at the REC are disconnected from the one another. i.e., solvents are not used in underground hydraulic lift components; therefore, if solvents are found in the immediate vicinity of an UHL, it is possible for the true source of impacts to be undefined.

	
5
	
Remediation costs represent 110% of the costs referenced in the Recommendations Letters.

	
 
	
–
	
The schedule provided above is a summary of findings based on the Phase I and II Environmental Site Assessments, which incorporates all of the reports by reference, and nothing in the schedule supersedes the findings in the reports.

	
 
	
–
	
Costs to clean up were triggered when any COC was detected above applicable State remediation/screening levels based on site use.

	
 
	
–
	
The REIT contains 235 total sites. This table presents the findings and projections to clean up those (123) sites in which environmental issues were identified through the recent due diligence efforts and correspondence with EBI.

	
 
	
–
	
The scope of work summarized above assumes that spill reporting is required for each exceedance in every state. However, reporting obligations will be re-evaluated during the SOW preparation at the onset of each project. Should reporting be deemed unnecessary, remediation will continue without the oversight of a State regulator.

 

Abbreviations:

		
	
ASTM
	
American Society for Testing and Materials COC constituent of concern

	
LUST
	
Leaking Underground Storage Tank NFA No Further Action

	
ND
	
Constituent not detected in laboratory analysis OWS Oil Water Separator

	
PCB
	
Polychlorinated Biphenyls

	
PCE
	
tetrachloroethelene

	
REC
	
Recognized Environmental Condition SL Screening levels

	
SRP
	
Site Remediation Program

	
TCE
	
Trichloroethene

	
TPH
	
Total Petroleum hydrocarbons

	
UHL
	
Underground Hydraulic Lift

	
UST
	
Underground Storage Tank

	
VOC
	
Volatile organic compounds

 

Schedule 20.3 REIT Environmental Cost Estimation Summary - 6srg-ex106_607.htm

 

Exhibit 10.6

Execution Version

OMNIBUS AMENDMENT

THIS OMNIBUS AMENDMENT (this “Amendment”) is entered into as of September 28, 2015 by and among JPMorgan Chase Bank, National Association, a national banking association (together with its successors and assigns, “JPM”) and H/2 SO III Funding I LLC, a Delaware limited liability company (together with its successors and assigns, “H/2” and with JPM, individually or collectively, as the context may require “Lender”), Seritage SRC Finance LLC, a Delaware limited liability company (together with its permitted successors and assigns, “SRC Borrower”), and Seritage KMT 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 GS Holdings LLC, a Delaware limited liability company (together with its permitted successors and assigns, “GS JV Pledgor”), Seritage SPS Holdings LLC, a Delaware limited liability company (together with its permitted successors and assigns, “SPS JV Pledgor”), and Seritage MS Holdings LLC, a Delaware limited liability company (together with its permitted successors and assigns, “MS JV Pledgor” and with GS JV Pledgor and SPS JV Pledgor, individually or collectively, as the context may require, “JV Pledgor”) 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 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 and provide for the bifurcation of the A-1 Note into Note Components, in each case, 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.

1

 

[NEWYORK 3105190_16]

 

“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, “F1+” by Fitch 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, “A+” by Fitch if rated by Fitch 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.

“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.

“Mezzanine Loan Spread” means 7.25%.

“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 (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 hereto.

“Spread Maintenance Premium” means the sum of (i) with respect to any prepayment of the Loan evidenced by the A-1 Note (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 of the Note Component 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 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 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, in each case, no Spread Maintenance Premium shall be payable with respect to Excluded Prepayments.

2

 

[NEWYORK 3105190_16]

 

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.

“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.

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 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 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 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 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 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, Borrower 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 Mezzanine 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 Mezzanine 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. Distributions from Cash Management Account.  Section 3.2(b)(ii) of the Loan Agreement is hereby amended and restated in its entirety as follows:

(i) to Lender (i) first, for payment to Servicer, the Primary Servicing Fee and (ii) second, 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);

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5. New Borrowers.  Section 9.30(a)(iii) 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;

6. 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 Borrower and SHLD have agreed that the failure to convey the Additional Conveyance Parcels to Borrower 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 Borrower pursuant to conveyance documentation prepared by Borrower and reasonably acceptable to the Lender, (ii) cause a Title Insurance Policy to be issued and 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 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 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 thereof that would permit the Leased Additional Conveyance Parcel to be used and developed by Borrower 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 relinquish the right to the Leased Additional Conveyance Parcel to SHLD in exchange for the repayment by SHLD to the Borrower of the purchase price paid by Borrower for the Leased Additional Conveyance Parcel  in the Transaction; provided, (i) Borrower shall 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.

7. 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.

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8. Note Components.

a. In accordance with Section 1(c) of the Loan Agreement, effective as of the date hereof, the A-1 Note has been subdivided into Note Components, each with the original principal balance and Component Spread set forth below:

 

	
Note Component
	
Original Principal Balance
	
Component Spread

	
Component A-1
	
$205,000,000
	
2.3064022%

	
Component A-2
	
$114,000,000
	
2.3064022%

	
Component B
	
$125,300,000
	
3.3564022%

	
Component C
	
$116,600,000
	
4.1064022%

	
Component D
	
$121,100,000
	
5.1064022%

	
Component E
	
$88,200,000
	
5.7564022%

	
Component F
	
$154,800,000
	
5.9815022%

	
Total/Weighted Average
	
$925,000,000
	
3.9861000%

b. Interest on the Principal Indebtedness evidenced by the A-1 Note paid pursuant to Section 1.2(a) of the Loan Agreement shall be applied: (i) first, to the payment of interest due and payable on Component A-1; (ii) second, to the payment of interest due and payable on Component A-2; (iii) third, to the payment of interest due and payable on Component B; (iv) fourth, to the payment of interest and principal due on Component C; (v) fifth, to the payment of interest due and payable on Component D; (vi) sixth, to the payment of interest due and payable on Component E; and (vii) seventh, to the payment of interest due and payable on Component F.

c. Any prepayment of the principal of the Loan evidenced by the A-1 Note, in whole or in part, voluntary or involuntary, when no Event of Default exists, shall be applied sequentially, as follows: (a) first, to the reduction of the outstanding principal balance of Component A-1 until reduced to zero; (b) second, to the reduction of the outstanding principal balance of Component A-2 until reduced to zero; (c) third, to the reduction of the outstanding principal balance of Component B until reduced to zero; (d) fourth, to the reduction of the outstanding principal balance of Component C until reduced to zero; (e) fifth, to the reduction of the outstanding principal balance of Component D until reduced to zero; (f) sixth, to the reduction of the outstanding principal balance of Component E until reduced to zero; and (g) seventh, to the reduction of the outstanding principal balance of Component F.  Subsequent to any continuing Event of Default, any payment of principal from whatever source may be applied by Lender between the Note Components in Lender’s sole discretion.

d. Any Extension Fees collected pursuant to Section 1.1(d) of the Loan Agreement in connection with an extension of the Loan evidenced by the A-1 Note shall be applied to the Note Components, pro rata, with respect to their respective outstanding principal balances.

9. Specified Leases.  Schedule P to the Loan Agreement is hereby replaced in its entirety with Schedule P attached hereto.

10. Virginia Beach Property.  Borrower has become aware that the legal description attached to the deed conveying the Property located in Virginia Beach, Virginia (Property #1265) (the “Virginia Beach Property”) to Borrower pursuant to the Approved Separation Transaction, and attached to the Mortgage associated with such property, contains the inaccuracies depicted on Exhibit A hereto, and Borrower hereby covenants to, with respect to the Virginia Beach Property, (i) deliver an amended deed with a corrected legal description, (ii) execute and deliver an amended Mortgage with a corrected legal description, (iii) deliver an updated Survey, and (iv) deliver an updated lender’s Title Insurance Policy in favor of Lender.

11. 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 obtain title to the Additional Conveyance Parcels on the Closing Date and from the inaccuracies in the deed conveying the Virginia Beach Property and the mortgage with respect to the Virginia Beach Property (in each case, 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.

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

If to Borrower or JV Pledgor:

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

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

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[NEWYORK 3105190_16]

 

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.

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

14. 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. 

15. 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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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:

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
JPMORGAN CHASE BANK, NATIONAL ASSOCIATION, 

a banking association chartered under the laws of the United States of America 

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
By:
	
 
	
 

	
 
	
 
	
 
	
Name:
	
 
	
Jennifer Lewin

	
 
	
 
	
 
	
Title:
	
 
	
Vice President

[Signatures continue on next page.]

 

			
	
Omnibus Amendment to Loan Documents
	
 
	
 

 

[NEWYORK 3105190_16]

 

 

	
 
	
 
	
 
	
H/2 SO III FUNDING I LLC, a Delaware limited liability company

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
By:
	
 
	
 

	
 
	
 
	
 
	
Name:
	
 
	
Daniel Ottensoser

	
 
	
 
	
 
	
Title:
	
 
	
Authorized Signatory

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
By:
	
 
	
 

	
 
	
 
	
 
	
Name:
	
 
	
Ben Doramus

	
 
	
 
	
 
	
Title:
	
 
	
Authorized Signatory

 

[Signatures continue on next page.]

 

 

 

			
	
Omnibus Amendment to Loan Documents
	
 
	
 

 

[NEWYORK 3105190_16]

 

 

	
 
	
 
	
 
	
BORROWER:

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
SERITAGE SRC FINANCE LLC,

	
 
	
 
	
 
	
a Delaware limited liability company

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
By:
	
 
	
 

	
 
	
 
	
 
	
Name:
	
 
	
Benjamin Schall

	
 
	
 
	
 
	
Title:
	
 
	
President

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
SERITAGE KMT FINANCE LLC,

	
 
	
 
	
 
	
a Delaware limited liability company

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
By:
	
 
	
 

	
 
	
 
	
 
	
Name:
	
 
	
Benjamin Schall

	
 
	
 
	
 
	
Title:
	
 
	
President

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
JV PLEDGOR:

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
SERITAGE GS HOLDINGS LLC,

	
 
	
 
	
 
	
a Delaware limited liability company

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
By:
	
 
	
 

	
 
	
 
	
 
	
Name:
	
 
	
Benjamin Schall

	
 
	
 
	
 
	
Title:
	
 
	
President

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
SERITAGE SPS HOLDINGS LLC,

	
 
	
 
	
 
	
a Delaware limited liability company

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
By:
	
 
	
 

	
 
	
 
	
 
	
Name:
	
 
	
Benjamin Schall

	
 
	
 
	
 
	
Title:
	
 
	
President

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
SERITAGE MS HOLDINGS LLC,

	
 
	
 
	
 
	
a Delaware limited liability company

	
 
	
 
	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
By:
	
 
	
 

	
 
	
 
	
 
	
Name:
	
 
	
Benjamin Schall

	
 
	
 
	
 
	
Title:
	
 
	
President

 

[Signatures continue on next page.]

 

			
	
Omnibus Amendment to Loan Documents
	
 
	
 

 

[NEWYORK 3105190_16]

 

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 Loan Documents
	
 
	
 

 

[NEWYORK 3105190_16]

 

Exhibit A

Virginia Beach Property Inaccuracies 

 

 

 

Exhibit A

 

Schedule P

Specified Leases

 

 

 

Schedule P 

 

[NEWYORK 3105190_16]

 

Schedule T

Additional Conveyance Parcels

 

Schedule T

 

[NEWYORK 3105190_16]

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