Document:

EX-10.5

 Exhibit 10.5 

FORM OF 
 TRANSITION SERVICES
AGREEMENT 
 BY AND BETWEEN 

SEARS HOLDINGS MANAGEMENT CORPORATION 

AND 
 SERITAGE GROWTH PROPERTIES,
L.P. 
 DATED AS OF [—], 2015 

 Table of Contents 

 

							
	 	  	 	  	Page	 
	 ARTICLE I. SERVICES
	  	 	1	  
	 1.01
	  	Services to be Provided.	  	 	1	  
	 1.02
	  	Quantity and Nature of Service.	  	 	1	  
	 1.03
	  	Changes in the Services.	  	 	2	  
	 1.04
	  	Transition Plan.	  	 	3	  
	 1.05
	  	Standard of Care.	  	 	3	  
	 1.06
	  	Responsibility For Errors; Delays.	  	 	3	  
	 1.07
	  	Good Faith Cooperation; Alternatives.	  	 	3	  
	 1.08
	  	Use of Third Parties.	  	 	3	  
	 1.09
	  	Assets of Seritage.	  	 	3	  
	 1.10
	  	Ownership of Information and Other Assets.	  	 	4	  
	 1.11
	  	Contact Person.	  	 	4	  
		
	 ARTICLE II. CHARGES AND PAYMENTS FOR SERVICES
	  	 	4	  
	 2.01
	  	Compensation.	  	 	4	  
	 2.02
	  	Payments.	  	 	5	  
	 2.03
	  	Taxes.	  	 	5	  
		
	 ARTICLE III. TERMINATION
	  	 	5	  
	 3.01
	  	Termination of an Individual Service for Convenience by Seritage.	  	 	5	  
	 3.02
	  	Termination of the Agreement.	  	 	6	  
	 3.03
	  	Obligations on Termination.	  	 	6	  
	 3.04
	  	Termination of an Individual Service by SHMC.	  	 	6	  
		
	 ARTICLE IV. CONFIDENTIALITY
	  	 	7	  
	 4.01
	  	Confidential Information.	  	 	7	  
		
	 ARTICLE V. INDEMNIFICATION; LIMITATION OF LIABILITY
	  	 	7	  
	 5.01
	  	Indemnification by Seritage.	  	 	7	  
	 5.02
	  	Indemnification by SHMC.	  	 	7	  
	 5.03
	  	Procedure.	  	 	8	  
	 5.04
	  	Limitation of Liability.	  	 	8	  
		
	 ARTICLE VI. MISCELLANEOUS
	  	 	8	  
	 6.01
	  	Vendor Agreements.	  	 	8	  
	 6.03
	  	Survival.	  	 	9	  
	 6.04
	  	Equitable Relief.	  	 	9	  
	 6.05
	  	Dispute Resolution.	  	 	9	  
	 6.06
	  	Other Provisions.	  	 	9	  
			
		  	Appendices	  			
	 Exhibit A
	  	Services	  			
	 Exhibit B
	  	Contact Persons	  			
	 Exhibit C
	  	Lenders	  			

  
 - i - 

 TRANSITION SERVICES AGREEMENT 

This TRANSITION SERVICES AGREEMENT (this “Agreement”), made and entered into effective as of [—], 2015, is by and between Sears Holdings Management Corporation, a Delaware corporation (“SHMC”), and Seritage Growth Properties, L.P., a Delaware limited partnership
(“Seritage”). SHMC and Seritage each are sometimes referred to as a “Party” and together sometimes are referred to as the “Parties.” Capitalized terms used but not otherwise defined herein shall
have the meanings given to such terms in the Separation, Distribution and Purchase and Sale Agreement, dated as of [—], 2015, by and between Sears Holdings Corporation (“SHC”) and
Seritage Growth Properties (the “Separation Agreement”). 
  For good and valuable consideration, the receipt of which
SHMC and Seritage hereby acknowledge, Seritage and SHMC hereby agree as follows: 
 ARTICLE I. 

SERVICES 
 1.01 Services to be
Provided. During the Service Period, SHMC shall provide, or cause to be provided, to Seritage the services described on Exhibit A to the extent not prohibited by applicable Law (each, a “Service,” and collectively, the
“Services”). “Service Period” shall mean the period commencing on the Closing Date and continuing until 5:00 p.m. (Central Time) on the last day of the month in which the 18 calendar month anniversary of the Closing
Date occurs (the “Expiration Date”). This Agreement shall automatically (and without notice) expire at 11:59 p.m. (Central Time) on the Expiration Date, unless otherwise agreed by the Parties in writing after the date of this
Agreement, it being understood that neither Party has the right to renew or extend the Service Period without the written agreement of the other Party. Except as expressly stated in Exhibit A, in the event of any conflict or inconsistency
between this Agreement and Exhibit A, this Agreement shall control. Unless otherwise agreed in writing by the Parties, the Services to be provided by or at the direction of SHMC under this Agreement are limited to those expressly stated
herein, and those modified or added to this Agreement by a Service Change (defined in Section 1.03). This Agreement, and the Services, Fees and Expenses hereunder, may only be modified by a written amendment executed by both Parties, and
Seritage acknowledges and agrees that in the absence of such signed written amendment, Seritage shall not rely (and any such reliance would be unreasonable) upon any proposed amendment or course of dealing by the Parties. Notwithstanding anything in
this Agreement to the contrary, nothing in this agreement shall require or permit SHMC to provide any business managerial services to Seritage or to direct the business, financial or strategic policies or decisions of Seritage. 

1.02 Quantity and Nature of Service. Except as otherwise provided in this Agreement, there shall be no change in the scope or level of,
or use by, Seritage of the Services during the Service Period (including changes requiring the hiring or training of additional employees by SHMC) without the mutual written agreement of the Parties and adjustments, if any, to the charges for such
Services. However, SHMC may make changes from time to time in the manner of performing Services (including changes to its, its Affiliates’ and its Personnel’s systems) without Seritage’s consent, whether the Services are provided by
SHMC through its or its Affiliates’ employees or any third party provider contracted by SHMC or its Affiliates (a “Vendor”). Notwithstanding anything in this 

  
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Agreement to the contrary, SHMC shall not provide any legal services or legal advice to Seritage and Seritage shall not be entitled to rely on SHMC for legal advice or counsel, and any advisory
communications given by SHMC to Seritage is not to be construed as legal advice. Seritage shall not resell any Services, provide the Services to any joint venture in which it participates or any non-wholly owned Subsidiary, or otherwise use the
Services in any way other than as SHMC or its Affiliates used the Services prior to the Closing Date under the Separation Agreement with respect to the operation of the properties conveyed to Seritage under the Separation Agreement. For purposes of
this Agreement, “Affiliate” means (i) with respect to Seritage, its Subsidiaries, and (ii) with respect to SHMC, SHC and its Subsidiaries; provided however, that except where the context indicates otherwise, for purposes
of this Agreement, from and after the effective date of this Agreement, (1) neither Seritage nor its Subsidiaries shall be deemed to be Affiliates of SHMC, and (2) neither SHC nor its Subsidiaries shall be deemed to be Affiliates of
Seritage. For purposes of this Agreement, “Subsidiary” means, with respect to any Person, any corporation, limited liability company, joint venture or partnership of which such Person (a) beneficially owns, either directly or
indirectly, more than fifty percent (50%) of (i) the total combined voting power of all classes of voting securities of such Person, (ii) the total combined equity interests or (iii) the capital, profit or beneficial interests,
in the case of a partnership, limited liability company or trust, or (b) otherwise has the power to vote, either directly or indirectly, sufficient securities or interests to elect a majority of the board of directors or similar governing body
or to Control such Person. 
 1.03 Changes in the Services. If Seritage desires to make changes in this Agreement to provide for
different or additional Services to be provided by SHMC (each, a “Service Change”), the parties shall comply with the following Service Change process: 

(a) Seritage shall prepare a written proposal for the Service Change including a description of the services, deliverables and schedule, in
such detail as would be needed by an unaffiliated third party contractor to develop a competent price proposal for similar services. For special project work that is within the scope of services covered by an hourly or unit rate in Exhibit A,
Seritage may use the hourly rate or unit rate stated in Exhibit A in developing the proposal price. 
 (b) All Service Change
proposals and responses must be delivered by a Party’s Contact Person to the other Party’s Contact Person. If SHMC can provide the different or additional services proposed in a Service Change with its then-existing resources and
capabilities, SHMC and Seritage will proceed to negotiate in good faith a proposed amendment to this Agreement to reflect the Service Change. If SHMC cannot provide any additional services proposed in a Service Change with its then-existing
resources and capabilities, SHMC shall use commercially reasonable efforts to obtain such additional services through a third-party provider. SHMC and Seritage shall execute a written amendment to this Agreement reflecting each Service Change,
including changes to the services, deliverables, schedule, fees, and expenses under this Agreement. If SHMC will arrange for the additional services under a Service Change to be provided by a third-party provider, Seritage shall, if requested by
SHMC, execute a written agreement directly with the third-party provider for the additional services. In the absence of a signed amendment, the Parties must fulfill their obligations under this Agreement without regard to such proposed amendment.

  
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 (c) Any Service Change proposal by Seritage for a service to be added to the Services must be
delivered to SHMC within the first 12 months following the effective date of this Agreement; no Service Changes for additional services will be made after that date. 

1.04 Transition Plan. During the Service Period, Seritage shall provide SHMC with quarterly reports concerning Seritage’s plans
for transitioning the performance of all Services to Seritage, its Affiliates or third party providers prior to the Expiration Date. SHMC shall provide Seritage with such information as is reasonably necessary to assist Seritage with such
transition. 
 1.05 Standard of Care. Except as otherwise set forth in this Agreement, SHMC does not assume any responsibility under
this Agreement other than to render the Services in Good Faith and in compliance with all applicable Laws, without willful misconduct or gross negligence. SHMC MAKES NO OTHER GUARANTEE, REPRESENTATION OR WARRANTY OF ANY KIND (WHETHER EXPRESS OR
IMPLIED) REGARDING ANY OF THE SERVICES PROVIDED HEREUNDER, AND EXPRESSLY DISCLAIMS ALL OTHER GUARANTEES, REPRESENTATIONS AND WARRANTIES OF ANY NATURE WHATSOEVER, WHETHER STATUTORY, ORAL, WRITTEN, EXPRESS OR IMPLIED, INCLUDING ANY WARRANTIES OF
MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE AND ANY WARRANTIES ARISING FROM COURSE OF DEALING OR USAGE OF TRADE. SUBJECT TO THE OTHER PROVISIONS OF THIS AGREEMENT, SHMC SHALL ONLY BE OBLIGATED TO PROVIDE SERVICES IN A MANNER CONSISTENT WITH
PAST PRACTICE (INCLUDING PRIORITIZATION AMONG PROJECTS FOR SHMC AND ITS AFFILIATES, AND SERITAGE AND ITS AFFILIATES). 
 1.06
Responsibility For Errors; Delays. SHMC’s sole responsibility to Seritage for errors or omissions in Services caused by SHMC shall be to furnish correct information, payment or adjustment in the Services, and if such errors or omissions
are solely or primarily caused by SHMC, SHMC shall promptly furnish such corrections at no additional cost or expense to Seritage if Seritage promptly advises SHMC of such error or omission. 

1.07 Good Faith Cooperation; Alternatives. SHMC and Seritage shall use Good Faith efforts to cooperate with each other in all matters
relating to the provision and receipt of the Services. If SHMC reasonably believes it is unable to provide any Service because of a failure to obtain Vendor consents or because of impracticability, SHMC shall notify Seritage promptly after SHMC
becomes aware of such fact and the Parties shall cooperate to determine the best alternative approach. Seritage shall provide such reasonable advance notice and forecasts of Services as are requested by SHMC or its Vendor performing the Services
from time to time. 
 1.08 Use of Third Parties. SHMC may use any Affiliate or any Vendor (including former Affiliates) to provide
the Services; provided, however, that SHMC shall remain liable at all times for the performance of Services by such Affiliate or any Vendor or Personnel under this Agreement, except as stated in Section 1.06. 

1.09 Assets of Seritage. During the Service Period, (a) SHMC and its Affiliates and Vendors may use, at no charge, all of the
software and other assets, tangible and intangible, of Seritage (together, the “Assets”) to the extent necessary to perform the Services 

(but for no other purpose), and (b) Seritage shall consult with SHMC prior to upgrading or replacing any of the Assets that are necessary for SHMC to
provide the Services. 

  
 3 

 1.10 Ownership of Information and Other Assets. Neither Party shall acquire under this
Agreement any right, title or interest in any Asset that is owned or licensed by the other. All Information provided by or on behalf of a Party to the other Party or its Affiliates for the purpose of providing or receiving the Services shall remain
the property of the Party providing such Information. To the extent the provision of any Service involves intellectual property, including software or patented or copyrighted material, or material constituting trade secrets, each Party agrees that
it and its Affiliates shall not copy, modify, reverse engineer, decompile or in any way alter any of such material, or otherwise use such material in a manner inconsistent with the terms and provisions of this Agreement, without the express written
consent of the other Party. All specifications, tapes, software, programs, services, manuals, materials and documentation developed or provided by SHMC, its Affiliates or its Vendors and utilized in performing this Agreement shall be and remain the
property of SHMC, such Affiliates or such Vendors, as applicable, and shall not, without SHMC’s prior written consent, be sold, transferred, disseminated or conveyed by Seritage or its Affiliates to any other Person (other than their Affiliates
and their respective directors, officers, employees, agents and representatives) or used, in each case other than in receiving the Services under, or in performing, this Agreement. 

1.11 Contact Person. Each Party shall appoint one contact person (a “Contact Person”) to facilitate communications and
performance under this Agreement. The initial Contact Person of each Party is set forth on Exhibit B. Each Party shall have the right at any time and from time to time to replace its Contact Person by written notice to the other Party,
following which Exhibit B shall be amended to reflect such Party’s new Contact Person. 
 ARTICLE II. 

CHARGES AND PAYMENTS FOR SERVICES 

2.01 Compensation. 
 (a)
As consideration for the provision of the Services, Seritage shall pay, or cause to be paid, to SHMC or its designee(s) the fees for the Services as specified on Exhibit A (the “Fees”), payable as provided on
Exhibit A. Upon termination of an individual Service, Seritage shall pay all Fees attributable to the Service being terminated actually performed, or expense actually incurred, through the date of termination of such Service. If the Fees
include charges for Services performed by a Vendor and the Vendor’s fees increase during the Service Period, SHMC shall be entitled to include such increased charges as an increase in the Fees. 

(b) For any Services requested by Seritage that are not otherwise performed or provided by SHMC in its normal business operations prior to the
Closing Date (“New Services”), SHMC shall use commercially reasonable efforts to provide the New Services to Seritage, or arrange for third parties to provide them. Seritage shall pay SHMC a Fee to perform or provide New Services,
equal to SHMC’s direct and indirect costs, plus [—]%, and including SHMC’s actual, reasonable expenses incurred in initiating the New Services. 

  
 4 

 (c) In addition to the Fees, Seritage shall reimburse SHMC or its designee(s) for all reasonable
and documented expenses actually incurred in SHMC’s or its Affiliate’s performance of the Services that are not included in the Fees (“Expenses”), including, without limitation, the costs of any software, systems or other
assets, or modifications thereof. To the extent reasonably practicable, SHMC shall provide Seritage with notice of such Expenses prior to incurring them. If directed by SHMC, Seritage shall pay directly any or all Vendors providing Services to or
for the benefit of Seritage. Seritage shall reimburse SHMC or its designee(s) for the costs of all third-party Personnel used to perform the Services under this Agreement on a cost plus [•]% basis. Except as otherwise provided for in this
Agreement, each Party shall bear its own expenses with respect to the transactions contemplated by this Agreement. 
 2.02 Payments.
Seritage shall pay Fees in accordance with Section 10.19 of the Separation Agreement. Unless otherwise mutually agreed in writing, all amounts payable under this Agreement shall be reconciled weekly and the Party owing the net amount
shall, make payment to the Party owed the net amount by electronic transfer of immediately available funds to a bank account designated by such owed Party from time to time. Monthly installments shall be included the first week’s reconciliation
of each month. All amounts remaining unpaid for more than 15 days after their respective due date(s) shall accrue interest as set forth in Section 10.19 of the Separation Agreement until paid in full. 

2.03 Taxes. The Parties hereby acknowledge that the Fees specified on Exhibit A do not include applicable taxes. Seritage
shall be responsible for the payment of all taxes payable in connection with the Services, including sales, use, excise, value-added, business, service, goods and services, consumption, withholding and other similar taxes or duties, including taxes
incurred on transactions between and among SHMC, its Affiliates, Vendors and Personnel, along with any related interest and penalties (“Transaction Taxes”). Seritage shall reimburse SHMC for any deficiency relating to
Transaction Taxes that are Seritage’s responsibility under this Agreement. Notwithstanding anything in this Section 2.03 to the contrary, each Party shall be responsible for its own income and franchise taxes, employment taxes
and property taxes, except as otherwise provided in the Separation Agreement or any of the other Ancillary Agreements. The Parties shall cooperate in Good Faith to minimize Transaction Taxes to the extent legally permissible. Each Party shall
provide to the other Party any resale exemption, multiple points of use certificates, treaty certification and other exemption information reasonably requested by such other Party. 

ARTICLE III. 
 TERMINATION 

3.01 Termination of an Individual Service for Convenience by Seritage. Subject to the next sentence, Seritage, upon 60 days’ prior
written notice to SHMC, may reduce or terminate for Seritage’s convenience any individual Service at the end of a Seritage fiscal month. Seritage may not terminate an individual Service if the termination would adversely affect SHMC’s
ability to perform another Service. If Seritage’s reduction or termination of a Service results in charges to SHMC or its Affiliate during the Term of this Agreement (e.g., termination charges or loss of volume discounts, severance for any
Personnel no longer needed to provide Services), Seritage shall reimburse SHMC for such expenses. 

  
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 3.02 Termination of the Agreement. 

(a) Seritage may terminate this Agreement in the event of a material breach of this Agreement by the SHMC if SHMC fails to cure the breach
within 30 days following receipt of written notice of the breach from Seritage. Seritage may terminate this Agreement in the event of a material breach of any of the payment obligations set forth in this Agreement by Seritage if Seritage or its
lenders set forth on Exhibit C (the “Lenders”) fail to cure the breach within 30 days following receipt of written notice of the breach from SHMC (in the case of the Lenders, to the address set forth on such exhibit). 

(b) Seritage’s breach of the Master Lease Agreement, dated as of [—], 2015, by and
between [—], or the Separation Agreement (collectively, the “Cross Default Agreements”) constitutes a breach by Seritage of this Agreement (which breach may only be cured, if at all, in
accordance with the express provisions of the affected Cross Default Agreement). Furthermore, if Seritage wrongfully terminates a Cross Default Agreement or if Seritage’s breach of a Cross Default Agreement results in the SHMC Entity
counterparty terminating that agreement; then SHMC may also terminate this Agreement for cause. SHMC’s remedies under this Section 3.02 are in addition to and not in lieu of any and all other legal and equitable remedies available
to SHMC upon Seritage’s breach of this Agreement. 
 (c) Following any foreclosure of any property of Seritage by the Lenders, the
Lenders shall be entitled to reinstate this Agreement upon the terms set forth herein, provided that the “Service Period” shall be deemed to commence on the date of such foreclosure and continue until 5:00 p.m. (Central Time) on the last
day of the month in which the 18 calendar month anniversary of the date of such foreclosure occurs and SHMC and the Lenders shall execute an appropriate amendment to this Agreement pursuant to which the Lenders or their designee shall become
entitled to the rights and subject to the obligations of Seritage hereunder in respect of such property. 
 3.03 Obligations on
Termination. Upon termination of this Agreement, Seritage shall return to SHMC, as soon as reasonably practicable, all equipment or other property of SHMC or its Affiliates, whether owned, leased, or licensed, and Seritage shall pay all
outstanding Fees for Services rendered and Expenses incurred through the date this Agreement is terminated in accordance with its terms. 

3.04 Termination of an Individual Service by SHMC. If an Affiliate of SHMC that provides a Service is unwilling or unable to provide
the Service and: (i) the Affiliate of SHMC does not provide a similar service to SHMC or its other Affiliates on terms that are comparable to the terms of this Agreement, and (ii) SHMC is unable to retain a replacement Vendor to provide
the Service on terms that are comparable to the terms of this Agreement, SHMC, upon providing 90-days’ prior written notice to Seritage, may terminate the Service, but the termination of the Service shall have no effect upon the provision of
the other Services to Seritage. If an Affiliate or Vendor that provides a Service is unwilling or unable to allow Seritage to use the Service under the existing (or comparable) terms, and SHMC is unable to retain a replacement Vendor to provide the
Service on terms that are comparable to the terms of this Agreement, SHMC, upon providing 90-days’ prior written notice to Seritage, may terminate the Service, but the termination shall have no effect upon the provision of the other Services to
Seritage. If SHMC is unable to give Seritage 90-days’ prior written notice to Seritage due to a Vendor’s refusal to allow Seritage to use the Service for 90 days, then SHMC shall provide as much notice as possible. 

  
 6 

 ARTICLE IV. 

CONFIDENTIALITY 
 4.01
Confidential Information. All Information provided by or on behalf of a Party to the other Party or its Affiliates under or in connection with this Agreement shall be subject to Sections 7.5 and 7.6 of the Separation Agreement, which shall
apply hereto as if set forth herein, mutatis mutandis. 
 ARTICLE V. 

INDEMNIFICATION; LIMITATION OF LIABILITY 

5.01 Indemnification by Seritage. Seritage shall defend, indemnify and hold harmless each SHMC Indemnitee from and against any and all
costs, liabilities, losses, penalties, expenses and damages (including reasonable attorneys’ fees) of every kind and nature related to or arising out of actions and failures or act by Personnel of Seritage or its Affiliates in connection this
Agreement (“Seritage Claims”), except to the extent that such Seritage Claims are found by a final judgment or opinion of an arbitrator or a court of competent jurisdiction to be caused by (i) a breach of any provision of this
Agreement by SHMC or (ii) any negligent act or omission, or willful misconduct, of SHMC, its Affiliates, or its or their respective directors, officers, employees, agents or representatives in performance of this Agreement. 

5.02 Indemnification by SHMC. SHMC shall defend, indemnify and hold harmless each Seritage Indemnitee from and against any and all
costs, liabilities, losses, penalties, expenses and damages (including reasonable attorneys’ fees) of every kind and nature arising from third-party claims, demands, litigation and suits that (a) relate to bodily injury or death of any
person or damage to real and/or tangible personal property directly caused by the negligence or willful misconduct of SHMC, its Affiliates, or its or their respective directors, officers, employees, agents or representatives during the performance
of the Services or (b) relate to the intentional infringement of any copyright or trade secret by an Asset owned by SHMC or its Affiliates and used by SHMC in the performance of the Services (together, “SHMC Claims”).
Notwithstanding the foregoing obligations set forth in this Section 5.02, SHMC shall not be required defend, indemnify or hold harmless any Seritage Indemnitee to the extent that such SHMC Claims are found by a final judgment or opinion
of an arbitrator or a court of competent jurisdiction to be caused by (i) a breach of any provision of this Agreement by Seritage, (ii) any negligent act or omission, or willful misconduct, of Seritage, its Affiliates, or its or their
respective directors, officers, employees, agents or representatives in performance of this Agreement or (iii) with respect to infringement claims relating to (A) Seritage’s use of the Asset in combination with any product or
information not provided by SHMC, (B) Seritage’s distribution, marketing or use for the benefit of third parties of the Asset, (C) Seritage’s use of the Asset other than as contemplated by this Agreement, (D) Seritage’s
use of the asset that differs materially in scope, extent or intensity to that of SHMC or its Affiliates prior to the effective date of this Agreement, or (E) information, direction, specification or materials provided by or on behalf of
Seritage. Seritage Claims and SHMC Claims are each individually referred to as a “Claim.” 

  
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 5.03 Procedure. Any Claim under this Agreement shall be subject to Sections 5.5 through
5.11 of the Separation Agreement, which shall apply hereto as if set forth herein, mutatis mutandis. 
 5.04 Limitation of
Liability. EXCEPT FOR (A) EACH PARTY’S INDEMNITY AND DEFENSE OBLIGATIONS AS SET FORTH IN SECTIONS 5.01, 5.02 AND 5.03 AND OTHER LIABILITIES TO UNAFFILIATED THIRD PARTIES, (B) ANY BREACH BY A PARTY OF ITS
CONFIDENTIALITY OBLIGATIONS AND (III) ANY BREACH OF SECTION 1.10, IN NO EVENT SHALL EITHER PARTY, THEIR RESPECTIVE AFFILIATES, OR ITS OR THEIR RESPECTIVE DIRECTORS, OFFICERS, EMPLOYEES, AGENTS, CONTRACTORS OR REPRESENTATIVES BE LIABLE
FOR ANY CONSEQUENTIAL, INCIDENTAL, INDIRECT, SPECIAL OR PUNITIVE DAMAGES, LOSSES OR EXPENSES (INCLUDING BUSINESS INTERRUPTION, LOST BUSINESS, LOST PROFITS, LOST DATA, LOST SAVINGS, DAMAGES TO SOFTWARE OR FIRMWARE, OR COST OF PROCURING OR
TRANSITIONING TO SUBSTITUTE SERVICES), REGARDLESS OF THE LEGAL THEORY UNDER WHICH SUCH LIABILITY IS ASSERTED, AND REGARDLESS OF WHETHER A PARTY HAD BEEN ADVISED OF THE POSSIBILITY OF SUCH LIABILITY. THE SOLE LIABILITY OF SHMC AND ITS AFFILIATES FOR
ERRORS AND OMISSIONS IN THE SERVICES ARE LIMITED AS PROVIDED FOR IN SECTION 1.07, AND FOR ALL OTHER CLAIMS IN ANY MANNER RELATED TO THIS AGREEMENT ARE LIMITED TO THE PAYMENT OF DIRECT DAMAGES, NOT TO EXCEED (FOR ALL CLAIMS IN THE AGGREGATE)
THE FEES RECEIVED BY SHMC UNDER THIS AGREEMENT DURING THE SIX MONTHS PRECEDING THE DATE SUCH CLAIM AROSE. NOTWITHSTANDING ANYTHING IN THIS AGREEMENT TO THE CONTRARY, SHMC SHALL NOT BE LIABLE FOR DAMAGES CAUSED BY SHMC’S VENDORS;
PROVIDED, HOWEVER, THAT TO THE EXTENT PERMITTED IN A VENDOR AGREEMENT, SHMC SHALL PASS THROUGH TO SERITAGE APPLICABLE RIGHTS AND REMEDIES UNDER THE SUCH VENDOR AGREEMENT. 

ARTICLE VI. 
 MISCELLANEOUS 

6.01 Vendor Agreements. The Parties anticipate that SHMC shall be relying upon its and its Affiliates’ existing agreements with
third parties to provide certain of the Services described herein (each, a “Vendor Agreement”) If (a) SHMC’s or its Affiliates’ costs, fees or expenses increase under the terms of a Vendor Agreement or (b) the
Vendor demands or is entitled to additional costs, fees or expenses now or in the future, in each case, as a result of Seritage and/or its Affiliates receiving benefits under a Vendor Agreement, then, in addition to all other amounts due hereunder,
Seritage shall be liable for its proportionate share of all increased or additional amounts under this Section 6.01, in each case as such amounts are determined by SHMC in Good Faith. SHMC shall notify Seritage promptly after it learns
of any increased amounts due under the immediately preceding sentence and shall work with the Vendor in Good Faith to try to mitigate such increased or additional amounts. To the extent any such Vendor Agreement includes early termination fees or
similar charges (the “Termination Fees”), Seritage shall be solely responsible for any such Termination Fees that SHMC or its Affiliates incur as a result of the Transaction and/or Seritage and/or its Affiliates ceasing to use the
Services under this Agreement. 

  
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 6.02 Computer Access. If either Party, its Affiliates or its or their respective Personnel
are given access, whether on-site or through remote facilities, to any communications, computer, or electronic data storage systems (each, an “Electronic Resource”) of the other Party, its Affiliates or its or their respective
Personnel in connection with this Agreement, then the Party on behalf of whom such access is given shall ensure that its Personnel’s use of such access shall be solely limited to performance or exercise of such Party’s duties and rights
under this Agreement, and that such Personnel will not attempt to access any Electronic Resource other than those specifically required for the performance of such duties and/or exercise of such rights. The Party given access shall (a) limit
such access to those of its and its Affiliates’ Personnel who need to have such access in connection with this Agreement, (b) advise the other Party in writing of the name of each of such Personnel who will be granted such access and
(c) strictly follow all security rules and procedures for use of such Electronic Resources. All user identification numbers and passwords disclosed to a Party’s or its Affiliates’ Personnel and any information obtained by such
Party’s or its Affiliates’ Personnel as a result of its access to, and use of, the other Party’s, its Affiliates’ or their respective Personnel’s Electronic Resources shall be deemed to be, and shall be treated as,
Confidential Information of the Party on behalf of whom such access is granted. Each Party shall reasonably cooperate with the other Party in the investigation of any apparent unauthorized access by the other Party, its Affiliates or their
respective Personnel to any Electronic Resources or unauthorized release of Confidential Information. Each Party shall promptly notify the other Party of any actual or suspected unauthorized access or disclosure of any Electronic Resource of the
other Party, its Affiliates or their respective Personnel. 
 6.03 Survival. Each term of this Agreement that would, by its nature,
survive the termination or expiration of this Agreement shall so survive, including the obligations of each Party to pay all amounts accrued hereunder and the provisions of Sections 1.10, 6.02 and 6.06 and Articles IV and
V. 
 6.04 Equitable Relief. Each Party acknowledges that any breach by a Party of Section 1.10, 4 or
6.02 may cause the non-breaching Party and its Affiliates irreparable harm for which the non-breaching Party and its Affiliates have no adequate remedies at law. Accordingly, in the event of any actual or threatened default in, or breach of,
the foregoing provisions, each Party shall be entitled to seek equitable relief, including specific performance, and injunctive relief, in addition to any and all other rights and remedies at law or in equity, and all such rights and remedies shall
be cumulative. A Party seeking such equitable relief is not obligated to comply with Section 6.05 and may seek such relief regardless of any cure rights for such actual or threatened breach. Each Party waives all claims for damages by
reason of the wrongful issuance of an injunction and acknowledges that its only remedy in such event is the dissolution of such injunction. Any requirements for the securing or posting of any bond with such remedy are hereby waived. 

6.05 Dispute Resolution. Except as provided for in Section 6.04, all Disputes related to this Agreement are subject to
Article IV of the Separation Agreement. 
 6.06 Other Provisions. Sections 10.3 through 10.15 (other than the reference to Article IX
of the Separation Agreement in Section 10.8), Sections 10.17 through 10.19 and 10.21 of the Separation Agreement shall apply to this Agreement as if set forth herein, mutatis mutandis. 

  
 9 

 [signature page follows] 

  
 10 

 IN WITNESS WHEREOF, the parties have caused this Agreement to be executed by their duly
authorized representatives. 
  

			
	SEARS HOLDINGS MANAGEMENT CORPORATION
		
	By:		  

	Name:		
	Title:		

  

			
	SERITAGE GROWTH PROPERTIES, L.P.
		
	By:		  

	Name:		
	Title:EX-10.6

 Exhibit 10.6 

FORM OF 
 SERITAGE
GROWTH PROPERTIES 
 2015 SHARE PLAN 

SECTION 1. BACKGROUND AND PURPOSE 
 The
name of this Plan is the Seritage Growth Properties 2015 Share Plan. The purpose of this Plan is to promote the interests of the Company and its Subsidiaries through grants to Eligible Individuals of Restricted Shares, Share Units, Other
Share-Based Awards, Options, and Share Appreciation Rights in order (1) to attract and retain the services of Eligible Individuals, (2) to provide an additional incentive to each Eligible Individual to work to increase the value of the
Shares and (3) to provide each Eligible Individual with a stake in the future of the Company which corresponds to the stake of each Company shareholder. 

SECTION 2. DEFINITIONS 
 Each term set
forth in this Section 2 shall have the meaning set forth opposite such term for purposes of this Plan and, for purposes of such definitions, the singular shall include the plural and the plural shall include the singular. 

2.1. Board shall mean the Board of Trustees of the Company. 

2.2. Code shall mean the Internal Revenue Code of 1986, as amended. 

2.3. Committee shall mean the Compensation Committee of the Board to which the responsibility to administer this Plan is delegated by
the Board and which shall consist of at least two members of the Board, each of whom shall be a non-employee director (within the meaning of Rule 16b-3 under the Exchange Act) and to the extent applicable, each of whom shall be an outside
director for purposes of Code Section 162(m). 
 2.4. Company shall mean Seritage Growth Properties, a Maryland real estate
investment trust, and any successor to such entity. 
 2.5. Employee shall mean any individual employed by the Company or a
Subsidiary on the payroll records thereof. An Employee shall not include any individual during any period he or she is classified or treated by the Company (or any Subsidiary) as an independent contractor or any employee of an employment or
temporary agency or firm, without regard to whether such individual is subsequently determined to have been or is subsequently retroactively reclassified as a common-law employee of the Company or any Subsidiary during such period. 

2.6. Eligible Individual shall mean an Employee, Non-Employee Director or other individual performing advisory or consulting services
for the Company or a Subsidiary, as determined and designated by the Committee. An award may be granted to an Eligible Individual, in connection with hiring, retention or otherwise, prior to the date the Employee, Non-Employee Director or service
provider first performs service for the Company or the Subsidiaries, provided such award shall not become vested prior to the date the Employee, Non-Employee Director or other service provider first performs such service. 

 2.7. Exchange Act shall mean the Securities Exchange Act of 1934, as amended. 

2.8. Fair Market Value shall mean, for any given date, the fair market value of the Shares as of such date, as determined by the
Committee on a basis consistently applied by the Company based on actual transactions in Shares on the exchange on which the Shares generally have the greatest trading volume. If the Shares are not readily tradable on an established market, fair
market value shall be determined by the Board based on a reasonable application of a reasonable valuation methodology. 
 2.9.
Non-Employee Director shall mean a member of the Board who is not an Employee of the Company or a Subsidiary. 
 2.10. Option
shall mean an option granted under Section 8 to purchase Shares and evidenced by an Option Agreement which Option shall not be treated as an incentive stock option under Code Section 422. 

2.11. Option Agreement shall mean the written agreement or instrument which sets forth the terms of an Option granted to an Eligible
Individual under this Plan. 
 2.12. Option Price shall mean the price which shall be paid to purchase one Share upon the exercise of
an Option granted under this Plan. 
 2.13. Other Share-Based Award shall mean a grant under Section 7 to an Eligible Individual
of Shares or other type of equity-based or equity-related award not otherwise described by the terms of this Plan, including without limitation, the grant or offer for sale of unrestricted Shares or the grant of Shares in settlement of an award
under an incentive program of the Company or any Subsidiary, in such amounts and subject to such terms and conditions, as the Committee shall determine. 

2.14. Performance Period shall mean the period selected by the Committee during which performance is measured for purpose of
determining the extent to which an award of SARs, Options, Restricted Shares, Share Units or Other Share-Based Awards has been earned. 

2.15. Plan shall mean this Seritage Growth Properties 2015 Share Plan, as amended from time to time. 

2.16. Restricted Shares shall mean Shares granted to an Eligible Individual pursuant to Section 7. 

2.17. SAR Agreement shall mean the written agreement or instrument which sets forth the terms of a SAR granted to an Eligible
Individual under this Plan. 
 2.18. SAR Share Value shall mean the figure which is set forth in each SAR Agreement and which is no
less than the Fair Market Value of a Share on the date the related SAR is granted. 
 2.19. Shares shall mean the Class A common
shares of the Company, par value $0.01 per share. 

  
 2 

 2.20. Share Appreciation Right or SAR shall mean a right which is granted pursuant to the
terms of Section 8 to the appreciation in the Fair Market Value of a Share in excess of the SAR Share Value for such a Share. 
 2.21.
Share Award Agreement shall mean the written agreement or instrument which sets forth the terms of a Restricted Share, Share Unit or Other Share-Based Award grant to an Eligible Individual under this Plan. 

2.22. Share Unit shall mean a right granted to an Eligible Individual pursuant to Section 7 to receive a payment in cash or Shares
based on the Fair Market Value of the number of Shares described in such grant. 
 2.23. Subsidiary shall mean, with respect to the
Company, any corporation, entity or other organization whether incorporated or unincorporated, of which (a) the Company directly or indirectly owns or controls at least a majority of the securities or other interests having by their terms
ordinary voting power to elect a majority of the board of directors or others performing similar functions, or (b) the Company is a general partner or managing member. For purposes of granting Options or SARs, an entity shall not be treated as
a Subsidiary unless the Company holds a “controlling interest” in such entity, where the term “controlling interest” has the meaning provided in Treasury Regulation Section 1.414(c)-2(b)(2)(i), provided that the language
“at least 50 percent” is used instead of “at least 80 percent” in Treasury Regulation Section 1.414(c)-2(b)(2)(i), and, provided further, that where the granting to such grantee of Options or SARs with respect to the Shares
is based upon a legitimate business criteria, the language “at least 20 percent” is used instead of “at least 80 percent” each place it appears in Treasury Regulation Section 1.414(c)-2(b)(2)(i). 

SECTION 3. SHARES RESERVED UNDER PLAN 

3.1. Shares. There shall be reserved for issuance under this Plan
[            ] Shares. 
 3.2. Share Counting. The Shares described in
Section 3.1 shall be reserved to the extent that the Company deems appropriate from authorized but unissued Shares and from Shares which have been reacquired by the Company. Shares covered by an award under the Plan shall only be counted as
used to the extent they are actually issued. Furthermore, any Shares issued pursuant to a Restricted Share or Other Share-Based Award grant which are forfeited or cancelled thereafter shall again become available for issuance under this Plan. The
net number of Shares issued under a Share Unit or Other Share-Based Award, if applicable, shall not again become available under Section 3.1 for issuance under this Plan. If a Share Unit or Other Share-Based Award is forfeited or settled in
cash, the related Shares shall again become available for issuance under this Plan. The net number of Shares issued under an Option or SAR, to the extent it is exercised, shall not again become available under Section 3.1 for issuance under
this Plan. If an Option or SAR is forfeited or settled in cash, if applicable, the related Shares shall again become available for issuance under this Plan. Any Shares which are (a) tendered to the Company to pay the Option Price of an Option,
(b) tendered to the Company in satisfaction of any condition to a grant of Restricted Shares or Other Share-Based Award, or (c) used to satisfy a withholding obligation under Section 14.4, shall again become available under
Section 3.1 for issuance under this Plan. 

  
 3 

 3.3. Use of Proceeds. The proceeds which the Company receives from the sale of any Shares
under this Plan shall be used for general corporate purposes and shall be added to the general funds of the Company. 
 3.4. Substitute
Awards. Awards may be granted under the Plan from time to time in substitution for stock options and other awards held by employees or directors of other entities who are about to become Employees, whose employer is about to become an affiliate
as the result of a merger or consolidation of the Company with another real estate investment trust or corporation, or the acquisition by the Company of substantially all the assets of another real estate investment trust or corporation, or the
acquisition by the Company of at least fifty percent (50%) of the issued and outstanding stock of another real estate investment trust or corporation as the result of which such other real estate investment trust or corporation will become a
Subsidiary. The terms and conditions of the substitute awards so granted may vary from the terms and conditions set forth in the Plan to such extent as the Committee at the time of grant may deem appropriate to conform, in whole or in part, to the
provisions of the award in substitution for which they are granted. If Shares are issued under the Plan with respect to a substitute award granted under this Section 3.4, as described above, to the extent permitted by applicable law and
exchange rules, such Shares will not count against the maximum number of Shares reserved for issuance under the Plan, as set forth in Section 3.1. 

SECTION 4. EFFECTIVE DATE 
 This Plan
shall become effective immediately prior to the closing date of the rights offering for the Shares of the Company by Sears Holdings Corporation to the holders of common stock of Sears Holdings Corporation. 

SECTION 5. PLAN ADMINISTRATION 
 5.1.
Authority of Committee. The Plan shall be administered by the Committee. Except as limited by law, or by the Declaration of Trust or By-Laws of the Company, and subject to the provisions of this Plan, the Committee shall have full power,
authority, and sole and exclusive discretion to construe, interpret and administer this Plan, including without limitation, the power and authority to make determinations relating to Plan grants and correct mistakes in any Share Award, Option or SAR
Agreement, and to take such other action in the administration and operation of this Plan as the Committee deems equitable under the circumstances. The Committee, in the exercise of this power, may correct any defect, omission or inconsistency in
the Plan, in a manner and to the extent it shall deem necessary or expedient to make the Plan fully effective. In addition, the Committee shall have full and exclusive power to adopt such rules, regulations and guidelines for carrying out the Plan
as it may deem necessary or proper, all of which power shall be executed in the best interests of the Company and in keeping with the objectives of the Plan. This power includes, but is not limited to, selecting award recipients and establishing all
award terms and conditions. 
 5.2. Amendment of Awards. The Committee, in its sole discretion, may amend any outstanding award at
any time in any manner not inconsistent with the terms of the Plan, provided that no outstanding, vested award may be amended without the grantee’s consent if the amendment would have a materially adverse effect on the grantee’s rights
under the award. 

  
 4 

 
Notwithstanding the foregoing, the Committee, in its sole discretion, may amend an award if it determines such amendment is necessary or advisable for the Company to comply with applicable law
(including Code Section 409A), regulation, rule, or accounting standard. 
 5.3. Delegation. To the extent permitted by
applicable law, the Committee may delegate its authority as identified herein to one or more officers of the Company or members of the Board, including without limitation the authority to approve grants to Eligible Individuals other than any of the
Company’s officers. To the extent that the Committee delegates its authority to make grants as provided by this Section 5.3, all references in the Plan to the Committee’s authority to make grants and determinations with respect
thereto shall be deemed to include the Committee’s delegate(s). In addition, the Committee may delegate to one or more of its members, officers of the Company or agents or advisors such administrative duties or powers as it may deem advisable.
Any such delegate shall serve at the pleasure of, and may be removed at any time by, the Committee. 
 5.4. Decisions Binding. In
making any determination or in taking or not taking any action under the Plan or any Share, Option or SAR Agreement, the Committee or its delegate(s) may obtain and may rely on the advice of experts, including Employees of and professional advisors
to the Company. Any action taken by, or inaction of, the Committee or its delegate(s) relating to or pursuant to the Plan or any Share, Option or SAR Agreement shall be within the absolute discretion of the Committee or its delegate. Such action or
inaction of the Committee or its delegate(s) shall be conclusive and binding on the Company, on each affected Eligible Individual and on each other person directly or indirectly affected by such action. 

SECTION 6. ELIGIBILITY 
 Eligible
Individuals shall be eligible for the grant of awards under this Plan. 
 SECTION 7. RESTRICTED SHARE, SHARE UNITS AND OTHER SHARE-BASED AWARDS 

7.1. Committee Action. 

(a) General. The Committee, acting in its absolute discretion, shall have the right to grant Restricted Shares, Share
Units and Other Share-Based Awards to Eligible Individuals from time to time. 
 (b) Limitations: 

(1) Other than Non-Employee Directors. Except as provided herein and subject to subsection (b)(2) immediately
below, no Restricted Share, Share Unit or Other Share-Based Award grants in any combination may be made to an Eligible Individual in any calendar year with respect to more than [—] Shares. Each
grant of Restricted Shares, Share Units and Other Share-Based Awards shall be evidenced by a Share Award Agreement. Notwithstanding the foregoing, separate and in addition to the above limit, no more than
[—] Shares may be awarded to any Eligible Individual in any calendar year with respect to Shares that are granted in settlement of an award under any incentive program of the Company or any
Subsidiary established thereunder. 

  
 5 

 (2) Non-Employee Directors. Notwithstanding subsection (b)(1)
immediately above, no Restricted Share, Share Unit and Other Share-Based Award grants in any combination may be made to a Non-Employee Director in any calendar year with respect to more than [$—]
in aggregate value at grant date(s). Each grant of Restricted Shares, Share Units and Other Share-Based Awards to a Non-Employee Director shall be evidenced by a Share Award Agreement. 

7.2. Forfeiture Conditions. The Committee may make a Restricted Share, Share Unit or Other Share-Based Award grant subject to one or
more employment, performance or other forfeiture conditions which the Committee acting in its absolute discretion deems appropriate under the circumstances, and the related Share Award Agreement shall set forth each such forfeiture condition and the
deadline for satisfying each such forfeiture condition. Any Restricted Share or Other Share-Based Award issued hereunder may be evidenced in such manner, as the Committee, in its sole discretion, shall deem appropriate, including without limitation,
book entry registration or issuance of a share certificate or certificates. In the event any physical share certificate is issued in respect of Restricted Shares or Other Share-Based Award granted under the Plan, such certificates shall be
registered in the name of the Eligible Individual, shall bear an appropriate legend referring to the terms, conditions and restrictions applicable to the award, and shall be held by the Company as escrow agent until the restrictions on such award
have lapsed. 
 7.3. Rights Under Awards. 

(a) Cash Dividends. Each Share Award Agreement which evidences a Restricted Share or Other Share-Based Award grant shall
state whether the Eligible Individual shall have a right to receive any cash dividends which are paid after any Restricted Shares or Other Share-Based Award are issued to him or her and before the first day that the Eligible Individual’s
interest in such Shares are forfeited. If such a Share Award Agreement provides that an Eligible Individual has no right to receive a cash dividend when paid, such agreement shall set forth the conditions, if any, under which the Eligible Individual
will be eligible to receive one, or more than one, payment in the future to compensate the Eligible Individual for the fact that he or she had no right to receive any cash dividends on his or her Restricted Shares or Other Share-Based Award when
such dividends were paid. If such a Share Award Agreement calls for any such payments to be made, the Company shall make such payments from the Company’s general assets, and the Eligible Individual shall be no more than a general and unsecured
creditor of the Company with respect to such payments. Unless otherwise set forth in the Share Award Agreement which evidences a Share Unit grant, if a cash dividend is paid on the Shares described in a Share Unit grant, such cash dividend shall be
treated as reinvested in Shares and shall increase the number of Shares described in such Share Unit grant. 

  
 6 

 (b) Share and Other Dividends. Unless otherwise provided in the related
Share Award Agreement, and subject to such rules as the Committee shall adopt with respect to each dividend, if a Share dividend is declared on a Restricted Share or Other Share-Based Award, such Share dividend shall be treated as part of the grant
of the related Restricted Share or Other Share-Based Award, and an Eligible Individual’s interest in such Share dividend shall be forfeited or shall become nonforfeitable at the same time as the Share with respect to which the Share dividend
was paid is forfeited or becomes nonforfeitable. Unless otherwise set forth in the Share Award Agreement which evidences a Share Unit grant, and subject to such rules as the Committee shall adopt with respect to each dividend, if a Share dividend is
declared on any Shares described in a Share Unit grant, such dividend shall increase the number of Shares described in such Share Unit grant. If a dividend is paid on a Share of Restricted Shares or Other Share-Based Award or on a Share described in
a Share Unit grant other than in cash or Shares, the disposition of such dividend with respect to such Restricted Shares or Other Share-Based Award grant and the treatment of such dividend with respect to such Share Unit grant shall be effected in
accordance with the terms of the related Share Award Agreement or such rules as the Committee shall adopt with respect to each such dividend. 

(c) Voting Rights. An Eligible Individual shall have the right to vote Restricted Shares or shares subject to any Other
Share-Based Award unless otherwise provided in the related Share Award Agreement. An Eligible Individual receiving a Share Unit grant shall not possess any voting rights with respect to such Share Units. 

(d) Effect of Termination. In the discretion of the Committee, a Share Award Agreement may provide for vesting, payment,
or other applicable terms after the Eligible Individual ceases to be employed or provide services to the Company or Subsidiary for any reason whatsoever, including death or disability. 

(e) Nontransferability. No Restricted Share or Other Share-Based Award grant and no Shares issued pursuant to a
Restricted Share or Other Share-Based Award grant shall be transferable by an Eligible Individual other than by will or by the laws of descent and distribution before an Eligible Individual’s interest in such shares have become completely
nonforfeitable, and no interests in a Share Unit grant shall be transferable other than by will or the laws of descent and distribution, except as otherwise provided in the related Share Award Agreement. 

(f) Creditor Status. An Eligible Individual to whom a Share Unit is granted shall be no more than a general and
unsecured creditor of the Company with respect to any payment due under such grant. 
 7.4. Satisfaction of Forfeiture Conditions. A
Share shall cease to be a Restricted Share or Other Share-Based Award at such time as an Eligible Individual’s interest in such Share becomes nonforfeitable under this Plan and the terms of the related Share Award Agreement. Upon vesting of a
Share Unit, the Eligible Individual shall receive payment in cash or Shares in accordance with the terms of the related Share Award Agreement. 

  
 7 

 SECTION 8. OPTIONS AND SARs 

8.1. Options. The Committee acting in its absolute discretion shall have the right to grant Options to purchase Shares to Eligible
Individuals from time to time, and Options may be granted for any reason the Committee deems appropriate under the circumstances. Each grant of an Option shall be evidenced by an Option Agreement, and each Option Agreement shall set forth that such
Option is not an incentive stock option and shall set forth such other terms and conditions, including without limitation any performance-based vesting conditions or forfeiture provisions, of such grant, as the Committee acting in its absolute
discretion deems consistent with the terms of this Plan. 
 8.2. Option Price, Exercise Period and No Dividend Equivalents. 

(a) Option Price. The Option Price for each Share subject to an Option shall be no less than the Fair Market Value of a
Share on the date the Option is granted. The Option Price shall be payable in full upon the exercise of any Option. Except in accordance with the provisions of Section 12, the Committee shall not, absent the approval of the Company’s
shareholders, take any action, whether through amendment, cancellation, replacement grants, exchanges or any other means, to directly or indirectly reduce the Option Price of any outstanding Option. 

(b) Exercise Period. Each Option granted under this Plan shall be exercisable in whole or in part at such time or times
as set forth in the related Option Agreement, but no Option Agreement shall make an Option exercisable before the date such Option is granted or on or after the date which is the tenth anniversary of the date such Option is granted. In the
discretion of the Committee, an Option Agreement may provide for the exercise of an Option after the Eligible Individual ceases to be employed or provide services to the Company or a Subsidiary for any reason whatsoever, including death or
disability. 
 (c) No Dividend Equivalents. In no event shall any Option or Option Agreement granted under the Plan
include any right to receive dividend equivalents with respect to such award. 
 8.3. Method of Exercise. 

(a) Committee Rules. An Option may be exercised as provided in this Section 8.3 pursuant to procedures (including,
without limitation, procedures restricting the frequency or method of exercise) as shall be established by the Committee or its delegate from time to time for the exercise of Options. 

(b) Notice and Payment. An Option shall be exercised by delivering to the Committee or its delegate during the period in
which such Option is exercisable, (1) written notice of exercise in a form acceptable to the Committee indicating the specific number of Shares subject to the Option which are being exercised and (2) payment in full of the Option Price for
such specific number of Shares. An Option Agreement, at the discretion of the Committee, may provide for the payment of the Option Price by any of the following means: 

(1) in cash, electronic funds transfer or a check acceptable to the Committee; 

  
 8 

 (2) in Shares which have been held by the Eligible Individual for a period
acceptable to the Committee and which Shares are otherwise acceptable to the Committee, provided that the Committee may impose whatever restrictions it deems necessary or desirable with respect to such method of payment; 

(3) through a broker-facilitated cashless exercise procedure acceptable to the Committee; or 

(4) in any combination of the methods described in this Section 8.3(b) which is acceptable to the Committee. 

Any payment made in Shares shall be treated as equal to the Fair Market Value of such Shares on the date the properly endorsed stock
certificate for such Shares is delivered to the Committee (or to its delegate) or, if payment is effected through a certification of ownership of Shares in lieu of a Share certificate, on the date the Option is exercised. 

(c) Restrictions. The Committee may from time to time establish procedures for restricting the exercise of Options on
any given date as the result of excessive volume of exercise requests or any other problem in the established system for processing Option exercise requests or for any other reason the Committee or its delegate deems appropriate or necessary. 

8.4. SARs. 

(a) SARs and SAR Share Value. 

(1) The Committee acting in its absolute discretion may grant an Eligible Individual a SAR which will give the Eligible
Individual the right to the appreciation in one, or more than one, Share, and any such appreciation shall be measured from the related SAR Share Value; provided, however, in no event shall the SAR Share Value be less than the Fair Market Value of a
Share on the date such SAR is granted. The Committee shall have the right to make any such grant subject to such additional terms, including without limitation any performance-based vesting conditions or forfeiture provisions, as the Committee deems
appropriate and such terms shall be set forth in the related SAR Agreement. 
 (2) Each SAR granted under this Plan shall be
exercisable in whole or in part at such time or times as set forth in the related SAR Agreement, but no SAR Agreement shall make a SAR exercisable before the date such SAR is granted or on or after the date which is the tenth anniversary of the date
such SAR is granted. In the discretion of the Committee, a SAR Agreement may provide for the exercise of a SAR after the Eligible Individual ceases to be employed or provide services to the Company or Subsidiary for any reason whatsoever, including
death or disability. 

  
 9 

 (3) Except in accordance with the provisions of Section 12, the Committee
shall not, absent the approval of the Company’s shareholders, take any action, whether through amendment, cancellation, replacement grants, exchanges or any other means, to directly or indirectly reduce the SAR Share Value of any outstanding
SAR. 
 (b) Procedure. The exercise of a SAR shall be effected by the delivery of the related SAR Agreement to the
Committee together with a statement signed by the Eligible Individual which specifies the number of Shares as to which the Eligible Individual exercises his or her SAR. 

(c) Payment. An Eligible Individual who exercises his or her SAR will receive a payment in cash or in Shares, or in a
combination of cash and Shares, equal in amount to the product of (i) the number of Shares with respect to which the SAR is exercised multiplied by (ii) the excess of the Fair Market Value of a Share on the exercise date over the
applicable SAR Share Value. The Committee acting in its absolute discretion shall determine the form of such payment. Any cash payment shall be made from the Company’s general assets, and an Eligible Individual shall be no more than a general
and unsecured creditor of the Company with respect to such payment. 
 (d) No Dividend Equivalents. In no event shall
any SAR or SAR Agreement granted under the Plan include any right to receive dividend equivalents with respect to such award. 
 8.5.
Nontransferability. Except to the extent the Committee deems permissible and consistent with the best interests of the Company, no Option or SAR shall be transferable by an Eligible Individual other than by will or by the laws of descent and
distribution, and any grant by the Committee of a request by an Eligible Individual for any transfer (other than a transfer by will or by the laws of descent and distribution) of an Option or SAR shall be conditioned on the transfer not being made
for value or consideration. Any such Option or SAR granted under this Plan shall be exercisable during an Eligible Individual’s lifetime, as the case may be, only by (subject to the first sentence in this Section 8.5) the Eligible
Individual, provided that in the event an Eligible Individual is incapacitated and unable to exercise such Eligible Individual’s Option or SAR, such Eligible Individual’s legal guardian or legal representative whom the Committee deems
appropriate based on all applicable facts and circumstances presented to the Committee may exercise such Eligible Individual’s Option or SAR, in accordance with the provisions of this Plan and the applicable Option or SAR Agreement. The person
or persons to whom an Option or SAR is transferred by will or by the laws of descent and distribution (or pursuant to the first sentence of this Section 8.5) thereafter shall be treated as the Eligible Individual under this Plan. 

8.6. Share Limitations. 

(a) Other than Non-Employee Directors. Subject to subsection (b) immediately below, an Eligible Individual may not
be granted in any calendar year Options, or SARs, or one or more Options and SARs in any combination which in the aggregate relate to more than [—] Shares. 

  
 10 

 (b) Non-Employee Directors. Notwithstanding subsection (a)
immediately above, a Non-Employee Director may not be granted in any calendar year Options, or SARs, or one or more Options and SARs in any combination which in the aggregate relate to more than
[$—] in aggregate value at grant date(s), based on the accounting value as recognized by the Company. 

SECTION 9. PERFORMANCE-BASED AWARDS 
 9.1.
Establishment of Performance Goals. If, at the time of grant, the Committee intends an award to qualify as performance based compensation within the meaning of Code Section 162(m)(4), the Committee must establish in writing, objective
performance goals for the applicable Performance Period no later than ninety (90) days after the Performance Period begins (but in no event after twenty-five percent (25%) of the Performance Period has elapsed), and while the outcome as to
the performance goals is substantially uncertain. Such performance goals established by the Committee may be with respect to corporate performance, operating group or sub-group performance, individual company performance, other group or individual
performance, or division performance, and shall be based on one or more of the criteria described in Section 9.2. 
 9.2.
Performance Measures. A performance goal may be based on any one or more or any combination (in any relative proportion) of the following: share price, market share, cash flow, revenue, revenue growth, earnings per share, operating earnings
per share, operating earnings, earnings before interest, taxes, depreciation and amortization, return on equity, return on assets, total shareholder return, return on capital, return on investment, net income, net income per share, economic value
added, market value added, store sales growth, customer and member growth, maintenance and satisfaction performance goals and employee opinion survey results measured by an independent firm, and strategic business objectives, consisting of one or
more objectives based on meeting specific cost or profit targets or margins, business expansion goals and goals relating to acquisitions or divestitures or leasing activities. Each goal, with respect to a performance period, may be expressed on an
absolute and/or relative basis, may be based on the Company as a whole or on any one or more business units of the Company, or its Subsidiaries, and may be based on or otherwise employ comparisons based on internal targets, the past performance of
the Company or of any one or more business units of the Company or its Subsidiaries, and/or the past or current performance of other companies, or an index. 

9.3. Certification of Performance. A Participant otherwise entitled to receive an award intended to meet the requirements of
performance-based compensation under Code Section 162(m) and the regulations thereunder for any Performance Period shall not receive a settlement of the award until the Committee has determined that the applicable performance goal(s) have been
attained. To the extent that the Committee exercises discretion in making the determination required by this subsection, such exercise of discretion may not result in an increase in the amount of the payment with respect to such award. 

9.4. Extraordinary Items. In establishing any performance goals, the Committee may, no later than the date such performance goals are
established in accordance with Section 9.1, provide for the exclusion of the effects of the following items, to the extent identified in the audited financial statements of the Company, including footnotes, or in the Management

  
 11 

 
Discussion and Analysis of Financial Condition and Results of Operations accompanying such financial statements: (a) asset write-downs; (b) litigation or claim judgments or settlements;
(c) extraordinary, unusual, and/or nonrecurring items of gain or loss; (d) gains or losses on acquisitions or divestitures or store closings; (e) domestic pension expenses; (f) noncapital, purchase accounting items;
(g) changes in tax or accounting principles, regulations or laws; (h) mergers or acquisitions; (i) integration costs disclosed as merger related; (j) accruals for reorganization or restructuring programs; (k) investment
income or loss; (l) foreign exchange gains and losses; and (m) tax valuation allowances and/or tax claim judgment or settlements. To the extent the exclusion of any item affects awards intended to constitute performance-based compensation
under Code Section 162(m), such exclusion shall be specified in a manner that satisfies the requirements of Code Section 162(m) and the regulations thereunder, including without limitation the requirement that performance goals be
objectively determinable. 
 SECTION 10. SECURITIES REGISTRATION 

For Shares issued pursuant to this Plan, the Company at its expense shall take such action as it deems necessary or appropriate to register the
original issuance of such Shares to an Eligible Individual under the Securities Act of 1933, as amended, or under any other applicable securities laws or to qualify such Shares for an exemption under any such laws prior to the issuance of such
Shares to an Eligible Individual; however, the Company shall have no obligation whatsoever to take any such action in connection with the transfer, resale or other disposition of such Shares by an Eligible Individual. 

SECTION 11. LIFE OF PLAN 
 No award shall
be granted under this Plan on or after the earlier of: (a) the tenth (10th) anniversary of the date the Company adopts this Plan, in which event this Plan otherwise thereafter shall continue in effect until all Options and SARs have been
exercised in full or no longer are exercisable and all Restricted Shares, Share Units and Other Share-Based Award grants under this Plan have been forfeited or the forfeiture conditions on the related Share or cash payments have been satisfied in
full, or (b) the date on which all of the Shares reserved under Section 3 has been issued or is no longer available for use under this Plan and all cash payments due under any Share Unit grants have been paid or forfeited, in which event
this Plan also shall terminate on such date. 
 SECTION 12. ADJUSTMENT 

12.1. Corporate Transactions. The Committee shall make equitable adjustments to reflect any corporate transaction, which may include
(a) adjusting the number, kind or class (or any combination thereof) of Shares reserved under Section 3, the grant limitations described in Section 7.1(b) and Section 8.6, the number, kind or class (or any combination thereof) of
Shares subject to Options and SARs granted under this Plan and the applicable Option Price and SAR Share Value, as well as the number, kind or class of Shares subject to Restricted Share, Share Unit and Other Share-Based Award grants under this
Plan, (b) replacing outstanding awards with other awards of comparable value (determined in the sole discretion of the Committee), (c) cancelling outstanding awards in return for a cash payment (the amount of which shall be determined in
the sole discretion of the Committee), other than Options or SARs where the 

  
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Option Price or SAR Share Value, respectively, is greater than the Fair Market Value at the time of the transaction, and (d) any other adjustments that the Committee determines to be
equitable. For purposes of this paragraph, a “corporate transaction” includes, without limitation, any dividend (other than a cash dividend that is not an extraordinary cash dividend) or other distribution (whether in the form of cash,
Shares, securities of a subsidiary of the Company, other securities or other property), change in control, recapitalization, share split, reverse share split, combination of shares, reorganization, merger, consolidation, acquisition, split-up,
spin-off, combination, repurchase or exchange of Shares or other securities of the Company, issuance of warrants or other rights to purchase Shares or other securities of the Company, or other similar corporate transaction or event. Notwithstanding
anything in this paragraph to the contrary, an adjustment to an Option or SAR under this paragraph shall be made in a manner that will not result in the grant of a new Option or SAR under Code Section 409A or cause the Option or SAR to fail to
be exempt from Code Section 409A. 
 12.2. General. If any adjustment under this Section 12 would create a fractional Share
or a right to acquire a fractional Share, such fractional Share shall be disregarded and the number of Shares reserved under this Plan and the number subject to any grant shall be the next lower number of Shares, rounding all fractions downward. Any
adjustment made under this Section 12 by the Committee shall be conclusive and binding on all affected persons. 
 SECTION 13. AMENDMENT OR
TERMINATION 
 The Board or the Committee may at any time in its sole discretion, for any reason whatsoever, terminate or suspend the
Plan, and from time to time may amend or modify the Plan; provided that without the approval of shareholders of the Company, no amendment or modification to the Plan may materially modify the Plan in any way that would require shareholder approval
under any regulatory requirement that the Committee determines to be applicable, including without limitation, the rules of any exchange. No amendment, modification, suspension or termination of the Plan shall have a materially adverse effect on any
vested and outstanding award on the date of such amendment, modification, suspension or termination, without the written consent of the affected grantee. Notwithstanding the foregoing, no Eligible Individual consent shall be needed for an amendment,
modification, or termination of the Plan if the Committee determines such amendment, modification, or termination is necessary or advisable for the Company to comply with applicable law (including Code Section 409A), regulation, rule, or
accounting standard. Suspension or termination of the Plan shall not affect the Committee’s ability to exercise the powers granted to it with respect to awards under this Plan prior to the date of such suspension or termination. 

SECTION 14. MISCELLANEOUS 
 14.1.
Stockholder Rights. No Eligible Individual shall have any rights as a shareholder of the Company as a result of the grant of an Option or SAR under this Plan or his or her exercise of such Option or SAR pending the actual delivery of any
Shares subject to such Option or SAR to such Eligible Individual. Except as otherwise provided in this Plan, an Eligible Individual’s rights as a shareholder in the Shares related to a Restricted Share or Other Share-Based Award grant shall be
set forth in the related Share Award Agreement. 

  
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 14.2. No Contract of Employment or Contract for Services. The grant of an award to an
Eligible Individual under this Plan shall not constitute a contract of employment or contract for the performance of services or an agreement to continue his or her status as an Eligible Individual and shall not confer on an Eligible Individual any
rights in addition to those rights, if any, expressly set forth in any Share, Option or SAR Agreement. 
 14.3. Coordination with
Corporate Policies. Shares and cash acquired by an Eligible Individual under this Plan shall be subject to share retention, forfeiture, and clawback policies established by the Company in accordance with the terms of such policies. 

14.4. Withholding. The exercise of any Option or SAR granted under this Plan and the acceptance of a Restricted Share, Share Unit or
Other Share-Based Award grant shall constitute an Eligible Individual’s full and complete consent to whatever action the Committee deems necessary to satisfy the minimum tax withholding requirements, if any, which the Committee acting in its
discretion deems applicable. Subject to applicable law, the Committee, in its discretion, shall have the right to condition the delivery of any Shares (or other benefit) under the Plan on the satisfaction of an Eligible Individual’s applicable
withholding obligation and shall have the right to satisfy such tax withholding requirements, if any: (a) through cash payment by the Eligible Individual; (b) with the Committee’s consent, through the surrender of Shares which the
Eligible Individual already owns (provided, however, that to the extent Shares described in this subsection (b) are used to satisfy more than the minimum statutory withholding obligation, then, except as otherwise provided by the Committee,
payments made with Shares in accordance with this subsection (b) shall be limited to Shares held by the Eligible Individual for not less than six (6) months prior to the payment date); or (c) through the surrender of Shares to which
the Eligible Individual is otherwise entitled under the Plan; provided, however, that such Shares under this subsection (c) may be used to satisfy not more than the Company’s minimum statutory withholding obligation. 

14.5. Compliance with Code Section 409A. To the extent that amounts payable under this Plan are subject to Code Section 409A,
the Plan is intended to comply with Code Section 409A and official guidance issued thereunder. Notwithstanding anything herein to the contrary, the Plan shall be interpreted, operated and administered in a manner consistent with this intention.

 14.6. Requirements of Law. The granting of awards and the issuance of Shares under the Plan shall be subject to all applicable
laws, rules, and regulations, and to such approvals by any governmental agencies or national securities exchanges as may be required. 

14.7. Indemnification. Each person who is or shall have been a member of the Committee and each delegate of such Committee shall be
indemnified and held harmless by the Company against and from any loss, cost, liability, or expense that may be imposed upon or reasonably incurred by him or her in connection with or resulting from any claim, action, suit, or proceeding to which he
or she may be made a party or in which he or she may be involved in by reason of any action taken or failure to act under the Plan and against and from any and all amounts paid by him or her in settlement thereof, with the Company’s approval,
or paid by him or her in satisfaction of any judgment in any such action, suit, or proceeding against him or her, provided that the Company is given an opportunity, at its own expense, to handle and defend the

  
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same before he or she undertakes to handle and defend it personally. Such foregoing right of indemnification shall not apply in circumstances involving such person’s bad faith or willful
misconduct. The foregoing right of indemnification shall not be exclusive and shall be independent of any other rights of indemnification to which such persons may be entitled under the Company’s Declaration of Trust or By-laws, by contract, as
a matter of law, or otherwise. 
 14.8. Headings and Captions. The headings and captions here are provided for reference and
convenience only, shall not be considered part of this Plan, and shall not be employed in the construction of this Plan. 
 14.9.
Governing Law. This Plan shall be governed under the internal laws of the state of Maryland without regard to principles of conflicts of laws, to the extent not superseded by federal law. The state and federal courts located in the state of
Maryland shall have exclusive jurisdiction in any action, lawsuit or proceeding based on or arising out of the Plan. 
 14.10. Invalid
Provisions. In the event any provision of this Plan shall be held illegal or invalid for any reason, the illegality or invalidity shall not affect the remaining parts of this Plan, and this Plan shall be construed and enforced as if the illegal
or invalid provision had not been included. 
 14.11. Conflicts. In the event of a conflict between the terms of this Plan and any
Share, Option or SAR Agreement, the terms of the Plan shall prevail. 
 14.12. Successors. All obligations of the Company under the
Plan with respect to awards granted hereunder shall be binding on any successor to the Company, whether the existence of such successor is the result of a direct or indirect purchase, merger, consolidation, or otherwise, of all or substantially all
of the business and/or assets of the Company. 
 14.13. Deferral of Awards. The Committee may, in a Share Award Agreement or
otherwise, establish procedures for the deferral of Shares or cash deliverable upon settlement, vesting or other events with respect to Restricted Shares, Share Units or Other Share-Based Awards. Notwithstanding anything herein to the contrary, in
no event will any deferral of Shares or any other payment with respect to any award granted under the Plan be allowed if the Committee determines, in its sole discretion, that the deferral would result in the imposition of the additional tax under
Code Section 409A. 
 14.14. Employees in Foreign Jurisdictions. Notwithstanding any provision of this Plan to the contrary, in
order to achieve the purposes of this Plan or to comply with provisions of the laws in countries outside the United Sates in which the Company operates or has Employees, the Committee, in its sole discretion, shall have the power and authority to
(i) determine which Eligible Individuals (if any) employed by the Company outside the United States should participate in the Plan, (ii) modify the terms and conditions of any awards made to such Eligible Individuals, and
(iii) establish sub-plans and other award terms, conditions and procedures to the extent such actions may be necessary or advisable to comply with provisions of the laws in such countries outside the United States in order to assure the
lawfulness, validity and effectiveness of awards granted under this Plan. 

  
 15

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