Document:

cik0000885568-ex41_15.htm

 

Exhibit 4.1

 
THIS INSTRUMENT IS SUPPLEMENTAL TO THAT CERTAIN SECOND AMENDED AND RESTATED INDENTURE OF MORTGAGE AND DEED OF TRUST DATED JANUARY 1, 2011, PREVIOUSLY RECORDED IN THE CLERK'S OFFICE, CIRCUIT COURT OF ACCOMACK COUNTY, VIRGINIA; CLERK'S OFFICE, CIRCUIT COURT OF ALBEMARLE COUNTY, VIRGINIA; CLERK'S OFFICE, CIRCUIT COURT OF FAUQUIER COUNTY, VIRGINIA; CLERK'S OFFICE, CIRCUIT COURT OF HALIFAX COUNTY, VIRGINIA; CLERK'S OFFICE, CIRCUIT COURT OF LOUISA COUNTY, VIRGINIA; CLERK'S OFFICE, CIRCUIT COURT OF NORTHAMPTON COUNTY, VIRGINIA; CLERK'S OFFICE, CIRCUIT COURT OF ORANGE COUNTY, VIRGINIA; CLERK'S OFFICE, CIRCUIT COURT OF SPOTSYLVANIA COUNTY, VIRGINIA; CLERK'S OFFICE, CIRCUIT COURT OF SURRY COUNTY, VIRGINIA; CLERK'S OFFICE, CIRCUIT COURT OF SUSSEX COUNTY, VIRGINIA; CLERK'S OFFICE, CIRCUIT COURT OF CECIL COUNTY, MARYLAND  AND IN THE RECORDER OF DEEDS OFFICER, LANCASTER COUNTY, PENNSYLVANIA.  THIS INSTRUMENT IS A SUPPLEMENTAL WRITING WITHIN THE MEANING OF SECTION 58.1-809 OF THE CODE OF VIRGINIA (1950), AS AMENDED.  THE RECORDING TAX IMPOSED BY SECTION 58.1-803 OF THE CODE OF VIRGINIA (1950), AS AMENDED, HAS ALREADY BEEN PAID ON THE SUM OF $1,380,210,000.00.  NO NOVATION IS INTENDED HEREBY.
__________________________________________________________________________

 

OLD DOMINION ELECTRIC COOPERATIVE,

GRANTOR,

TO

BRANCH BANKING AND TRUST COMPANY,

TRUSTEE

________________________

Fourth Supplemental INDENTURE

Dated as of July 6, 2017

______________________

 

Supplemental to the Second Amended and Restated
Indenture of Mortgage and Deed of Trust, 

Dated as of January 1, 2011

______________________________________________________________________

 

A Mortgage of Both Real and Personal Property

 

 

THIS INSTRUMENT GRANTS A SECURITY INTEREST BY A UTILITY THIS INSTRUMENT CONTAINS AFTER ACQUIRED PROPERTY PROVISIONS

 

 

 

FOURTH SUPPLEMENTAL INDENTURE

THIS FOURTH SUPPLEMENTAL INDENTURE, dated as of July 6, 2017 (this “Fourth Supplemental Indenture”), is made by and between OLD DOMINION ELECTRIC COOPERATIVE, a Virginia utility aggregation cooperative (the “Company”), whose mailing address and address of its chief executive office is 4201 Dominion Boulevard, Glen Allen, Virginia 23060, and BRANCH BANKING AND TRUST COMPANY, a North Carolina banking corporation, as trustee (the “Trustee”), having a corporate trust office at 223 West Nash Street, Wilson, North Carolina 27893.

WHEREAS, the Company has heretofore executed and delivered to the Trustee a Second Amended and Restated Indenture of Mortgage and Deed of Trust, dated as of January 1, 2011 (the “Original Indenture”), for the purpose of providing for the authentication and delivery of Obligations (capitalized terms used but not otherwise defined herein shall have the meanings ascribed to them in the Original Indenture) by the Trustee from time to time under the Original Indenture (the Original Indenture, as heretofore, hereby and hereafter supplemented being sometimes referred to as the “Indenture”);

WHEREAS, the Original Indenture and the First Supplemental Indenture, dated as of April 1, 2011, to the Original Indenture (the “First Supplemental Indenture”) each were recorded among the land records in the Clerk’s Office, Circuit Court of Accomack County, Virginia; Clerk’s Office, Circuit Court of Albemarle County, Virginia; Clerk’s Office, Circuit Court of Fauquier County, Virginia; Clerk’s Office, Circuit Court of Halifax County, Virginia; Clerk’s Office, Circuit Court of Louisa County, Virginia; Clerk’s Office, Circuit Court of Northampton County, Virginia; Clerk’s Office, Circuit Court of Orange County, Virginia; Clerk’s Office, Circuit Court of Spotsylvania County, Virginia; Clerk’s Office, Circuit Court of Surry County, Virginia; Clerk’s Office, Circuit Court of Sussex County, Virginia; Clerk’s Office, Circuit Court of Cecil County, Maryland and in the Recorder of Deeds Office, Lancaster County, Pennsylvania, and a UCC Form 1 concerning each of the Original Indenture and the First Supplemental Indenture were recorded among the financing statement records at the Virginia State Corporation Commission and the Clerk’s Office, Circuit Court of Accomack County, Virginia; Clerk’s Office, Circuit Court of Albemarle County, Virginia; Clerk’s Office, Circuit Court of Fauquier County, Virginia; Clerk’s Office, Circuit Court of Halifax County, Virginia; Clerk’s Office, Circuit Court of Louisa County, Virginia; Clerk’s Office, Circuit Court of Northampton County, Virginia; Clerk’s Office, Circuit Court of Orange County, Virginia; Clerk’s Office, Circuit Court of Spotsylvania County, Virginia; Clerk’s Office, Circuit Court of Surry County, Virginia; Clerk’s Office, Circuit Court of Sussex County, Virginia; Clerk’s Office, Circuit Court of Cecil County, Maryland and in the Recorder of Deeds Office, Lancaster County, Pennsylvania;

WHEREAS, the Second Supplemental Indenture, dated as of June 1, 2013, to the Original Indenture (the “Second Supplemental Indenture”) was recorded among the land records in the Clerk’s Office, Circuit Court of Accomack County, Virginia; Clerk’s Office, Circuit Court of Albemarle County, Virginia; Clerk’s Office, Circuit Court of Fauquier County, Virginia; Clerk’s Office, Circuit Court of Halifax County, Virginia; Clerk’s Office, Circuit Court of Louisa County, Virginia; Clerk’s Office, Circuit Court of Northampton County, Virginia; Clerk’s Office, Circuit Court of Orange County, Virginia; Clerk’s Office, Circuit Court of Spotsylvania County, Virginia; Clerk’s Office, Circuit Court of Surry County, Virginia; Clerk’s Office, Circuit Court of Cecil County, Maryland and in the Recorder of Deeds Office, Lancaster County, Pennsylvania; 

 

 

WHEREAS, the Third Supplemental Indenture, dated as of November 1, 2014, to the Original Indenture (the “Third Supplemental Indenture”) was recorded among the land records in the Clerk’s Office, Circuit Court of Accomack County, Virginia; Clerk’s Office, Circuit Court of Albemarle County, Virginia; Clerk’s Office, Circuit Court of Fauquier County, Virginia; Clerk’s Office, Circuit Court of Halifax County, Virginia; Clerk’s Office, Circuit Court of Louisa County, Virginia; Clerk’s Office, Circuit Court of Northampton County, Virginia; Clerk’s Office, Circuit Court of Orange County, Virginia; Clerk’s Office, Circuit Court of Spotsylvania County, Virginia; Clerk’s Office, Circuit Court of Surry County, Virginia; Clerk’s Office, Circuit Court of Sussex County, Virginia Clerk’s Office, Circuit Court of Cecil County, Maryland and in the Recorder of Deeds Office, Lancaster County, Pennsylvania; 

WHEREAS, this Fourth Supplemental Indenture to the Original Indenture will be recorded among the land records in the Clerk’s Office, Circuit Court of Accomack County, Virginia; Clerk’s Office, Circuit Court of Albemarle County, Virginia; Clerk’s Office, Circuit Court of Fauquier County, Virginia; Clerk’s Office, Circuit Court of Halifax County, Virginia; Clerk’s Office, Circuit Court of Louisa County, Virginia; Clerk’s Office, Circuit Court of Northampton County, Virginia; Clerk’s Office, Circuit Court of Orange County, Virginia; Clerk’s Office, Circuit Court of Spotsylvania County, Virginia; Clerk’s Office, Circuit Court of Surry County, Virginia; Clerk’s Office, Circuit Court of Sussex County, Virginia Clerk’s Office, Circuit Court of Cecil County, Maryland and in the Recorder of Deeds Office, Lancaster County, Pennsylvania;

WHEREAS, the Company has, since the date of the Third Supplemental Indenture, acquired interests in certain additional real property in Cecil County, Maryland and Lancaster County, Pennsylvania;

WHEREAS, the Board of Directors of the Company has authorized and approved actions necessary for the Company to establish a new series of Obligations to be designated the First Mortgage Bonds, 2017 Series A due December 1, 2037, in the aggregate principal amount of Two Hundred Fifty Million Dollars ($250,000,000.00) (the “2017 Series A Bonds”);

WHEREAS, the 2017 Series A Bonds are being issued pursuant to this Fourth Supplemental Indenture to the parties set forth in Schedule A of the Bond Purchase Agreement (described below) with respect to each such series of the 2017 Series A Bonds (with their successors or assigns of the 2017 Series A Bonds, each a “2017 Series A Holder”) to secure the Company’s obligations under the Bond Purchase Agreement, dated as of July 6, 2017, among the Company and the original 2017 Series A Holders (the “Bond Purchase Agreement”), and the Company has complied or will comply with all provisions required to issue Obligations provided for in the Indenture;

Whereas, the Company desires to execute and deliver this Fourth Supplemental Indenture, in accordance with the provisions of the Indenture, for the purpose of (i) providing for the creation and designation of the 2017 Series A Bonds as Obligations and specifying the form and provisions of the 2017 Series A Bonds, and (ii) amplifying the description of the property subject to the lien of the Indenture; 

WHEREAS, Section 13.01 of the Indenture provides that, without the consent of the Holders of any of the Obligations at the time Outstanding, the Company, when authorized by a 

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Board Resolution, and the Trustee, may enter into supplemental indentures for the purposes of and subject to the conditions set forth in said Section 13.01, and this Fourth Supplemental Indenture is permitted pursuant to provisions of Section 13.01(A) and Section 13.01(C); and

WHEREAS, all acts and proceedings required by law and by the Articles of Incorporation and Bylaws of the Company necessary to secure the payment of the principal of and interest on the 2017 Series A Bonds, to make the 2017 Series A Bonds issued under the Indenture, when executed by the Company, authenticated and delivered by the Trustee and duly issued, the valid, binding and legal obligations of the Company, and to constitute under the Indenture a valid and binding lien for the security of the 2017 Series A Bonds, in accordance with its terms, have been done and taken, and the execution and delivery of this Fourth Supplemental Indenture has been in all respects duly authorized.

NOW, THEREFORE, THIS FOURTH SUPPLEMENTAL INDENTURE WITNESSES, that, to secure the payment of the principal of (and premium, if any) and interest on the Outstanding Secured Obligations, including, when issued, the 2017 Series A Bonds, to confirm the lien of the Indenture upon the Trust Estate, including property purchased, constructed or otherwise acquired by the Company since the date of execution of the Original Indenture, to secure performance of the covenants therein and herein contained, to confirm the terms and conditions on which the 2017 Series A Bonds are secured, and in consideration of the premises thereof and hereof, the Company by these presents does grant, bargain, sell, alienate, remise, release, convey, assign, transfer, mortgage, hypothecate, pledge, set over and confirm to the Trustee, and its successors and assigns in the trust created thereby and hereby, in trust, all property, rights, privileges and franchises (other than Excepted Property and Excludable Property) of the Company, whether now owned and described on Exhibit B attached hereto and by this reference made a part hereof, or hereafter acquired, of the character described in the Granting Clauses of the Indenture, including all such property, rights, privileges and franchises acquired since the date of execution of the Original Indenture, including, without limitation, all of those fee and leasehold interests in real property, if any, which may hereafter be constructed or acquired by it, but subject to all exceptions, reservations and matters of the character therein referred to, and expressly excepting and excluding from the lien and operation of the Indenture all properties of the character specifically excepted as “Excepted Property” in the Indenture to the extent contemplated thereby.

PROVIDED, HOWEVER, that (i) if, upon the occurrence of an Event of Default under the Indenture, the Trustee, or any separate trustee or co-trustee appointed under Section 10.14 of the Indenture or any receiver appointed pursuant to statutory provision or order of court, shall have entered into possession of all or substantially all of the Trust Estate, all the Excepted Property described or referred to in Subdivisions (A) through (G), inclusive, of “Excepted Property” then owned or thereafter acquired by the Company shall immediately, and, in the case of any Excepted Property described or referred to in Subdivisions (H) through (K), inclusive, of “Excepted Property” upon demand of the Trustee or such other trustee or receiver, become subject to the lien thereof to the extent permitted by law, and the Trustee or such other trustee or receiver may, to the extent permitted by law, at the same time likewise take possession thereof, and (ii) whenever all Events of Default under the Indenture shall have been cured and the possession of all or substantially all of the Trust Estate shall have been restored to the Company, such Excepted Property shall again be excepted and excluded from the lien thereof to the extent and otherwise as hereinabove set forth. The Company may, however, pursuant to the Third Granting Clause of the 

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Indenture, subject to the lien of the Indenture any Excepted Property, whereupon the same shall cease to be Excepted Property.

TO HAVE AND TO HOLD all such property, rights, privileges and franchises hereby and hereafter (by a Supplemental Indenture or otherwise) granted, bargained, sold, alienated, remised, released, conveyed, assigned, transferred, mortgaged, hypothecated, pledged, set over or confirmed as aforesaid, or intended, agreed or covenanted so to be, together with all the tenements, hereditaments and appurtenances thereto appertaining (said properties, rights, privileges and franchises, including any cash and securities hereafter deposited or required to be deposited with the Trustee (other than any such cash which is specifically stated in the Indenture not to be deemed part of the Trust Estate) being part of the Trust Estate), unto the Trustee, and its successors and assigns in the trust herein created, forever.

SUBJECT, HOWEVER, to (i) Permitted Encumbrances and (ii) to the extent permitted by Section 14.06 of the Indenture as to property hereafter acquired since the date of execution of the Original Indenture, (a) any duly recorded or perfected prior mortgage or other lien that may exist thereon at the date of the acquisition thereof by the Company and (b) purchase money mortgages, other purchase money liens, chattel mortgages, conditional sales agreements or other title retention agreements created by the Company at the time of acquisition thereof.

BUT IN TRUST, NEVERTHELESS, with power of sale, for the equal and proportionate benefit and security of the Holders from time to time of all the Outstanding Secured Obligations without any priority of any such Obligation over any other such Obligation and for the enforcement of the payment of such Obligations in accordance with their terms.

UPON CONDITION that, until the happening of an Event of Default under the Indenture and subject to the provisions of Article VI of the Indenture, and not in limitation of the rights elsewhere provided in the Indenture, including the rights set forth in Article VI of the Indenture, the Company shall be permitted to (i) possess and use the Trust Estate, except cash, securities, and other personal property deposited, or required to be deposited, with the Trustee, (ii) explore for, mine, extract, separate and dispose of coal, ore, gas, oil and other minerals, and harvest standing timber, and (iii) receive and use the rents, issues, profits, revenues and other income, products and proceeds of the Trust Estate.  

AND IT IS HEREBY COVENANTED AND DECLARED that the 2017 Series A Bonds are to be authenticated and delivered and the Trust Estate is to be held and applied by the Trustee, subject to the covenants, conditions and trusts set forth herein and in the Indenture, and the Company does hereby covenant and agree to and with the Trustee, for the equal and proportionate benefit of all Holders of the Outstanding Secured Obligations, as follows:

ARTICLE I

Definitions

Section 1.1Definitions.

All words and phrases defined in the Indenture shall have the same meaning in this Fourth Supplemental Indenture, including any exhibit hereto, except as otherwise appears herein and in 

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this Article or unless the context clearly requires otherwise.  In addition, the following terms have the following meaning in this Fourth Supplemental Indenture unless the context clearly requires otherwise.

“Business Day” means any day other than a Saturday, a Sunday or a day on which commercial banks in (a) New York, New York, (b) Richmond, Virginia and (c) Raleigh, North Carolina or the city in which the principal corporate trust office of the Trustee is located are required or authorized to be closed.

“Default Rate” means with respect to any 2017 Series A Bond, that rate of interest that is the greater of (i) 2.00% per annum above the rate of interest stated in clause (a) of the first paragraph of such 2017 Series A Bond, or (ii) 2.00% over the rate of interest publicly announced by Bank of America, N.A. in New York, New York or its successor, as its “prime” rate.

“Make-Whole Amount” is defined in Section 2.10 herein.

ARTICLE II

THE 2017 Series A Bonds AND
CERTAIN PROVISIONS RELATING THERETO

Section 2.1Authentication and Terms of the 2017 Series A Bonds.  Pursuant to the provisions of Article V of the Original Indenture, there has been established a series of Obligations known as and entitled the “First Mortgage Bonds, 2017 Series A”.

The aggregate principal amount of the 2017 Series A Bonds which may be authenticated and delivered and Outstanding at any one time is limited to Two Hundred Fifty Million Dollars ($250,000,000.00) due December 1, 2037.  The 2017 Series A Bonds shall originally be registered in the names of the applicable 2017 Series A Holders, and shall be dated the date of authentication and delivery.  The 2017 Series A Bonds shall be issued as fully registered bonds without coupons and in minimum denominations of $1.00 and any integral multiple of $1.00 in excess thereof. 

The 2017 Series A Bonds shall bear interest from their date of issuance, payable semi-annually on June 1 and December 1 of each year commencing on December 1, 2017, at the rate of 3.33% per annum, subject to adjustment for an Interest Rate Adjustment Event as provided in the 2017 Series A Bonds.  Interest on the 2017 Series A Bonds shall be computed on the basis of a 360-day year of twelve 30-day months.

The principal of, premium (including the Make-Whole Amount), if any, and interest on the 2017 Series A Bonds shall be paid to the 2017 Series A Holders thereof in immediately available funds as described in such Bonds.  Any payment of principal of or premium (including the Make-Whole Amount, if any) or interest on any 2017 Series A Bond that is due on a date other than a Business Day shall be made on the next succeeding Business Day without including the additional days elapsed in the computation of the interest payable on such next succeeding Business Day; provided that if the maturity date of any 2017 Series A Bond is a date other than a Business Day, the payment otherwise due on such maturity date shall be made on the next succeeding Business Day and shall include the additional days elapsed in the computation of interest payable on such next succeeding Business Day.  

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If the Company fails to make any payment with respect to the 2017 Series A Bonds when due, then such payment shall be due and payable on demand, and shall accrue interest from the date due until the date paid at the Default Rate.

Section 2.2Form of the 2017 Series Bonds.  The 2017 Series A Bonds shall be a bond substantially in the form of Exhibit A hereto, and the Trustee’s authentication certificate to be executed on the 2017 Series A Bonds shall be substantially in the form attached thereto, with such appropriate insertions, omissions, substitutions and other variations as are required or permitted in the Indenture.

Section 2.3Required Prepayments.  On December 1, 2018, and on each December 1 thereafter to and including December 1, 2037, the Company will prepay a portion of the aggregate principal amount of the 2017 Series A Bonds due December 1, 2037, at par and without payment of any premium (including the Make-Whole Amount), provided that upon any partial prepayment of such 2017 Series A Bonds pursuant to Section 2.5 or partial purchase of such 2017 Series A Bonds permitted by Section 2.9, the principal amount of each required prepayment of such 2017 Series A Bonds becoming due under this Section 2.3 on and after the date of such prepayment or purchase shall be reduced in the same proportion as the aggregate unpaid principal amount of such 2017 Series A Bonds is reduced as a result of such prepayment or purchase.  The aggregate principal amount of the 2017 Series A Bonds to be prepaid and the dates of such prepayments, as well as the principal amount payable on the maturity date, are set forth below:

		
	
Date
	
Amount

	
December 1, 2018
	
$12,500,000.00

	
December 1, 2019
	
$12,500,000.00

	
December 1, 2020
	
$12,500,000.00

	
December 1, 2021
	
$12,500,000.00

	
December 1, 2022
	
$12,500,000.00

	
December 1, 2023
	
$12,500,000.00

	
December 1, 2024
	
$12,500,000.00

	
December 1, 2025
	
$12,500,000.00

	
December 1, 2026
	
$12,500,000.00

	
December 1, 2027
	
$12,500,000.00

	
December 1, 2028
	
$12,500,000.00

	
December 1, 2029
	
$12,500,000.00

	
December 1, 2030
	
$12,500,000.00

	
December 1, 2031
	
$12,500,000.00

	
December 1, 2032
	
$12,500,000.00

	
December 1, 2033
	
$12,500,000.00

	
December 1, 2034
	
$12,500,000.00

	
December 1, 2035
	
$12,500,000.00

	
December 1, 2036
	
$12,500,000.00

	
December 1, 2037 (1)
	
$12,500,000.00

	
__________

(1) The final maturity date of the 2017 Series A Bonds.

 

Section 2.4Optional Redemption.  The 2017 Series A Bonds, due December 1, 2037, are subject to redemption, in whole and not in part, on a pro rata basis within 90 days prior to the 

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final maturity of the 2017 Series A Bonds at a Redemption Price equal to 100% of the principal amount, together with accrued interest to the Redemption Date.  From and after such Redemption Date, interest on such principal amount being redeemed shall cease to accrue.  

Upon receipt of a notice from the Company of its intent to effect an optional redemption of the 2017 Series A Bonds pursuant to this Section, the Trustee shall cause written notice of such redemption to be given to each 2017 Series A Holder of the 2017 Series A Bonds then Outstanding not less than 30 days and not more than 60 days prior to the Redemption Date.  The notice of redemption shall specify the Redemption Date, that interest, if any accrued to the Redemption Date will be paid as specified in such notice and that on and after such date interest thereon shall cease to accrue.  Any 2017 Series A Bond redeemed in full shall be surrendered to the Company reasonably promptly after payment is made in full in accordance with Section 11 of the Bond Purchase Agreement and cancelled and shall not be reissued, and no 2017 Series A Bond shall be issued in lieu of any redeemed principal amount of any such cancelled 2017 Series A Bond. 

Section 2.5Optional Prepayments and Make-Whole Amount.  The Company may, at its option, upon notice as provided below, prepay at any time all, or from time to time any part of, the 2017 Series A Bonds in an amount not less than 3% of the aggregate principal amount of the 2017 Series A Bonds then outstanding in the case of a partial prepayment, at 100% of the principal amount so prepaid, and the Make-Whole Amount determined for the prepayment date with respect to such principal amount.  The Company will give each 2017 Series A Holder written notice of each optional prepayment under this Section 2.5 not less than 30 days and not more than 60 days prior to the date fixed for such prepayment.  Each such notice shall specify such date (which shall be a Business Day), the aggregate principal amount of the 2017 Series A Bonds to be prepaid on such date, the principal amount of each 2017 Series A Bond held by such 2017 Series A Holder to be prepaid (determined in accordance with Section 2.6 herein), and the interest to be paid on the prepayment date with respect to such principal amount being prepaid, and shall be accompanied by an Officer’s Certificate as to the estimated Make-Whole Amount due in connection with such prepayment (calculated as if the date of such notice were the date of the prepayment), setting forth the details of such computation.  Two Business Days prior to such prepayment, the Company shall deliver to each 2017 Series A Holder an Officer’s Certificate specifying the calculation of such Make-Whole Amount as of the specified prepayment date.  The Company shall contemporaneously deliver a copy of such notice and Officer’s Certificate to the Trustee.

Section 2.6Allocation of Partial Prepayments.  In the case of each optional redemption or partial prepayment of the 2017 Series A Bonds pursuant to Section 2.4 or 2.5 hereof, respectively, the principal amount of the 2017 Series A Bonds to be redeemed or prepaid, as applicable, shall be allocated among all of the 2017 Series A Bonds at the time outstanding in proportion, as nearly as practicable, to the respective unpaid principal amounts thereof not theretofore called for redemption or prepayment, as applicable.

Section 2.7Payment of Make-Whole Amount Upon Acceleration.  Upon the occurrence of an Event of Default, if the outstanding principal amount of the 2017 Series A Bonds shall have been declared or otherwise become due and payable immediately pursuant to and in accordance with the Indenture then, in addition to paying each 2017 Series A Holder the entire unpaid principal amount of its 2017 Series A Bonds and all accrued and unpaid interest thereon (including, but not limited to, interest accrued thereon at the applicable Default Rate), the 

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Company shall calculate and pay to each 2017 Series A Holder (to the full extent permitted by applicable law) an amount equal to the Make-Whole Amount determined in respect of such principal amount.  The Company acknowledges that each 2017 Series A Holder has the right to maintain its investment in the 2017 Series A Bonds free from repayment by the Company (except as herein and in the Indenture specifically provided for) and that the provision for payment of a Make-Whole Amount by the Company in the event that the 2017 Series A Bonds are prepaid or are accelerated as a result of an Event of Default, is intended to provide compensation for the deprivation of such right under such circumstances.  

Section 2.8Maturity; Surrender; Etc.  In the case of each prepayment of 2017 Series A Bonds pursuant to Section 2.5 hereof, the principal amount of each 2017 Series A Bond to be prepaid shall mature and become due and payable on the date fixed for such prepayment (which shall be a Business Day), together with interest on such principal amount accrued to such date and the applicable Make-Whole Amount, if any.  From and after such date, unless the Company shall fail to pay such principal amount when so due and payable, together with the interest and Make-Whole Amount, if any, as aforesaid, interest on such principal amount shall cease to accrue.  Any 2017 Series A Bond paid or prepaid in full shall be surrendered to the Company and cancelled and shall not be reissued, and no 2017 Series A Bond shall be issued in lieu of any prepaid principal amount of any such cancelled 2017 Series A Bond.

Section 2.9Purchase of 2017 Series A Bonds.  The Company will not, and will not permit any Affiliate to, purchase, redeem, prepay or otherwise acquire, directly or indirectly, any of the outstanding 2017 Series A Bonds except (a) upon the payment, redemption or prepayment of the 2017 Series A Bonds in accordance with the terms of the Original Indenture and the 2017 Series A Bonds or (b) pursuant to an offer to purchase made by the Company or an Affiliate pro rata to the 2017 Series A Holders of all 2017 Series A Bonds at the time outstanding upon the same terms and conditions.  Any such offer shall provide each 2017 Series A Holder with sufficient information to enable it to make an informed decision with respect to such offer, and shall remain open for at least 30 Business Days.  If the 2017 Series A Holders of more than 51% of the principal amount of the 2017 Series A Bonds then outstanding accept such offer, the Company shall promptly notify the remaining 2017 Series A Holders of such fact and the expiration date for the acceptance by 2017 Series A Holders of such offer shall be extended by the number of days necessary to give each such remaining 2017 Series A Holder at least 10 Business Days from its receipt of such notice to accept such offer.  The Company will promptly cancel all 2017 Series A Bonds acquired by it or any Affiliate pursuant to any payment, prepayment or purchase of 2017 Series A Bonds pursuant to any provision of this Fourth Supplemental Indenture and no 2017 Series A Bonds may be issued in substitution or exchange for any such 2017 Series A Bonds.

Section 2.10Make-Whole Amount.

“Make-Whole Amount” means, with respect to any 2017 Series A Bond, an amount equal to the excess, if any, of the Discounted Value of the Remaining Scheduled Payments with respect to the Called Principal of such 2017 Series A Bond over the amount of such Called Principal, provided that the Make-Whole Amount may in no event be less than zero. For the purposes of determining the Make-Whole Amount with respect to any 2017 Series A Bond the following terms have the following meanings:

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“Called Principal” means, with respect to any 2017 Series A Bond, the principal of such 2017 Series A Bond that is to be prepaid pursuant to Section 2.5 hereof or has become or is declared to be immediately due and payable pursuant to the Indenture, as the context requires.

“Discounted Value” means, with respect to the Called Principal of any 2017 Series A Bond, the amount obtained by discounting all Remaining Scheduled Payments with respect to such Called Principal from their respective scheduled due dates to the Settlement Date with respect to such Called Principal, in accordance with accepted financial practice and at a discount factor (applied on the same periodic basis as that on which interest on the 2017 Series A Bonds is payable) equal to the Reinvestment Yield with respect to such Called Principal.

“Reinvestment Yield” means, with respect to the Called Principal of any 2017 Series A Bond, the sum of 0.50% plus the yield to maturity implied by the yields reported as of 10:00 A.M. (New York City time) on the second Business Day preceding the Settlement Date with respect to such Called Principal, on the display designated as “Page PX1” (or such other display as may replace Page PX1) on Bloomberg Financial Markets for the most recently issued actively traded on the run U.S. Treasury (“Reported”) securities having a maturity equal to the Remaining Average Life of such Called Principal as of such Settlement Date.  If there are no such U.S. Treasury securities Reported having a maturity equal to such Remaining Average Life, then such implied yield to maturity will be determined by (a) converting U.S. Treasury bill quotations to bond equivalent yields in accordance with accepted financial practice and (b) interpolating linearly between the yields Reported for the applicable most recently issued actively traded on-the-run U.S. Treasury securities with the maturities (1) closest to and greater than such Remaining Average Life and (2) closest to and less than such Remaining Average Life.  The Reinvestment Yield shall be rounded to the number of decimal places as appears in the interest rate of the 2017 Series A Bond.

If such yields are not Reported or the yields Reported as of such time are not ascertainable (including by way of interpolation), then “Reinvestment Yield” means, with respect to the Called Principal of any 2017 Series A Bond, 0.50% over the yield to maturity implied by the U.S. Treasury constant maturity yields reported, for the latest day for which such yields have been so reported as of the second Business Day preceding the Settlement Date with respect to such Called Principal, in Federal Reserve Statistical Release H.15 (or any comparable successor publication) for the U.S. Treasury constant maturity having a term equal to the Remaining Average Life of such Called Principal as of such Settlement Date.  

If there is no such U.S. Treasury constant maturity having a term equal to such Remaining Average Life, such implied yield to maturity will be determined by interpolating linearly between (1) the U.S. Treasury constant maturity so reported with the term closest to and greater than such Remaining Average Life and (2) the U.S. Treasury constant maturity so reported with the term closest to and less than such Remaining Average Life.  The Reinvestment Yield shall be rounded to the number of decimal places as appears in the interest rate of the 2017 Series A Bond.

“Remaining Average Life” means, with respect to any Called Principal, the number of years obtained by dividing (i) such Called Principal into (ii) the sum of the products obtained by multiplying (a) the principal component of each Remaining Scheduled Payment with respect to 

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such Called Principal by (b) the number of years, computed on the basis of a 360-day year composed of twelve 30-day months and calculated to two decimal places, that will elapse between the Settlement Date with respect to such Called Principal and the scheduled due date of such Remaining Scheduled Payment.

“Remaining Scheduled Payments” means, with respect to the Called Principal of any 2017 Series A Bond, all payments of such Called Principal and interest thereon that would be due after the Settlement Date with respect to such Called Principal if no payment of such Called Principal were made prior to its scheduled due date; provided that if such Settlement Date is not a date on which interest payments are due to be made under the terms of the 2017 Series A Bonds, then the amount of the next succeeding scheduled interest payment will be reduced by the amount of interest accrued to such Settlement Date and required to be paid on such Settlement Date pursuant to Section 2.5 or Section 2.7 above.

“Settlement Date” means, with respect to the Called Principal of any 2017 Series A Bond, the date on which such Called Principal is to be prepaid pursuant to Section 2.5 above or has become or is declared to be immediately due and payable pursuant to the Indenture, as the context requires.

Section 2.11Use of Proceeds.  The Company shall use the proceeds of the loan evidenced by the 2017 Series A Bonds for the repayment of indebtedness and general corporate purposes.

ARTICLE III

Outstanding Secured Obligations

Section 3.1Principal Amount Presently To Be Outstanding.  The total aggregate principal amount of Obligations of the Company issued and Outstanding and presently to be issued and Outstanding under the provisions of and secured by the Indenture is One Billion Two Hundred Seventy-Four Million Seven Hundred Forty-Six Thousand Dollars ($1,274,746,000.00) consisting of: One Hundred Fifty Million Dollars ($150,000,000.00) principal amount of First Mortgage Bonds, 2002 Series B; One Hundred Twenty-Four Million Nine Hundred Ninety-Six Thousand Dollars ($124,996,000.00) principal amount of First Mortgage Bonds, 2003 Series A; Eighty Million Seven Hundred Fifty Thousand Dollars ($80,750,000.00) principal amount of First Mortgage Bonds, 2011 Series C; One Hundred Sixty-Five Million Dollars ($165,000,000.00) principal amount of First Mortgage Bonds, 2011 Series B; Seventy-Two Million Dollars ($72,000,000.00) principal amount of First Mortgage Bonds, 2011 Series A; Fifty Million Dollars ($50,000,000.00) principal amount of First Mortgage Bonds, 2013 Series A and Fifty Million Dollars ($50,000,000.00) principal amount of First Mortgage Bonds, 2013 Series B; Two Hundred Sixty Million Dollars ($260,000,000.00) principal amount of First Mortgage Bonds, 2015 Series A and Seventy-Two Million Dollars ($72,000,000.00) principal amount of First Mortgage Bonds, 2015 Series B; and Two Hundred Fifty Million Dollars ($250,000,000.00) principal amount of First Mortgage Bonds, 2017 Series A to be issued pursuant to this Fourth Supplemental Indenture upon compliance by the Company with the provisions of the Indenture.  

10

 

ARTICLE IV

MISCELLANEOUS

Section 4.1Supplemental Indenture.  This Fourth Supplemental Indenture is executed and shall be construed as an indenture supplemental to the Indenture, and shall form a part thereof, and the Indenture, as hereby supplemented, modified, and amended, is hereby confirmed.  Except to the extent inconsistent with the express terms of this Fourth Supplemental Indenture and the 2017 Series A Bonds, all of the provisions, terms, covenants and conditions of the Indenture shall be applicable to the 2017 Series A Bonds to the same extent as if specifically set forth herein.

Section 4.2Trustee Obligations Under the Bond Purchase Agreement.  The Trustee is not a party to the Bond Purchase Agreement and all obligations of the Trustee relating to the 2017 Series A Bonds are set forth in the Indenture, including this Fourth Supplemental Indenture.

Section 4.3Recitals.  All Recitals in this Fourth Supplemental Indenture are made by the Company only and not by the Trustee and are incorporated herein; and all of the provisions contained in the Original Indenture, in respect of the rights, privileges, immunities, powers and duties of the Trustee shall be applicable in respect hereof as fully and with like effect as if set forth herein in full.

Section 4.4Successors and Assigns.  Whenever in this Fourth Supplemental Indenture any of the parties hereto is named or referred to, this shall, subject to the provisions of Articles X and XII of the Indenture, be deemed to include the successors and assigns of such party, and all the covenants and agreements contained in this Fourth Supplemental Indenture by or on behalf of the Company, or by or on behalf of the Trustee, shall, subject as aforesaid, bind and inure to the respective benefits of the respective successors and assigns of such parties, whether so expressed or not.

Section 4.5No Rights, Remedies, Etc.  Nothing in this Fourth Supplemental Indenture, expressed or implied, is intended, or shall be construed, to confer upon, or to give to, any person, firm or corporation, other than the parties hereto and the Holders of the Outstanding Secured Obligations, any right, remedy or claim under or by reason of this Fourth Supplemental Indenture or any covenant, condition, stipulation, promise or agreement hereof, and all the covenants, conditions, stipulations, promises and agreements in this Fourth Supplemental Indenture contained by or on behalf of the Company shall be for the sole and exclusive benefit of the parties hereto, and of the Holders of Outstanding Secured Obligations.

Section 4.6Severability.  Any provision of this Fourth Supplemental Indenture held to be invalid, illegal or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such invalidity, illegality or unenforceability without affecting the validity, legality and enforceability of the remaining provisions hereof; and the invalidity of a particular provision in a particular jurisdiction shall not invalidate such provision in any other jurisdiction.

Section 4.7Governing Law.  This Fourth Supplemental Indenture shall be construed in accordance with and governed by the law of the Commonwealth of Virginia.

11

 

Section 4.8Counterparts.  This Fourth Supplemental Indenture may be executed in several counterparts, each of such counterparts shall for all purposes be deemed to be an original, and all such counterparts, or as many of them as the Company and the Trustee shall preserve undestroyed, shall together constitute but one and the same instrument.

Section 4.9Security Agreement; Mailing Address.  To the extent permitted by applicable law, this Fourth Supplemental Indenture shall be deemed to be a security agreement and financing statement whereby the Company grants to the Trustee a security interest in all of the Trust Estate that is personal property or fixtures under the Uniform Commercial Code.

The mailing address of the Company, as debtor, is:

Old Dominion Electric Cooperative

4201 Dominion Boulevard

Glen Allen, Virginia 23060

and the mailing address of the Trustee, as secured party, is:

Branch Banking and Trust Company

Attention: Corporate Trust Department

223 West Nash Street

Wilson, North Carolina 27893

Additionally, this Fourth Supplemental Indenture shall, if appropriate, be an amendment to the financing documents previously filed in connection with the Original Indenture.  The Company is authorized to execute and file as appropriate instruments under the Uniform Commercial Code to either create a security interest or amend any security interest heretofore created.

 

[Remainder of page intentionally left blank; signature pages follow.]

 

12

 

 

IN WITNESS WHEREOF, the parties hereto have caused this Fourth Supplemental Indenture to be duly executed as of the day and year first above written.

			
	
Company:

Innsbrook Corporate Center

4201 Dominion Boulevard

Glen Allen, Virginia 23060
	
OLD DOMINION ELECTRIC COOPERATIVE

	
 
	
By:
	
/s/ Robert L. Kees

	
 
	
Name:
	
Robert L. Kees

	
 
	
Title:
	
Senior Vice President and Chief Financial Officer

	
 
	
 

	
 
	
 

 

 

Commonwealth OF VIRGINIA)

)TO-WIT:

COUNTY OF Henrico)

The foregoing instrument was duly acknowledged before me this June 28, 2017 by Robert L. Kees, the Senior Vice President and Chief Financial Officer of Old Dominion Electric Cooperative, a Virginia utility aggregation cooperative, on behalf of the cooperative.

/s/ Arlene Hines
Notary Public

My Commission expires:  September 30, 2018

 

 

 

			
			
	

Trustee:

 

Attention: Corporate Trust Department

223 West Nash Street

Wilson, North Carolina 27893
	
BRANCH BANKING AND TRUST COMPANY

as Trustee

 

 

	
 
	
By:
	
/s/ Marcus Gustafson

	
 
	
Name:       Marcus Gustafson
Title:         Senior Vice President

 

 

state of north carolina)

)TO-WIT:

COUNTY OF Wilson)

The foregoing instrument was duly acknowledged before me this June 28, 2017 by Marcus Gustafson, the Senior Vice President of Branch Banking and Trust Company, a North Carolina banking corporation. 

/s/ Ruby Tyner
Notary Public

My Commission expires:  June 26, 2020

 

 

 

 

 

EXHIBIT A

FORM OF 2017 Series A BONDS

THIS 2017 SERIES A BOND HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “SECURITIES ACT”), AND MAY NOT BE SOLD OR OTHERWISE TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN APPLICABLE EXEMPTION THEREFROM EXCEPT UNDER CIRCUMSTANCES WHERE NEITHER SUCH REGISTRATION NOR SUCH EXEMPTION IS REQUIRED BY LAW.  

 

OLD DOMINION ELECTRIC COOPERATIVE 

FIRST MORTGAGE Bonds, 2017 Series A due December 1, 2037

NO. [_______]iSSUANCE DATE: [_________]
$[__________]PPN: [_____]

FOR VALUE RECEIVED, the undersigned, OLD DOMINION ELECTRIC COOPERATIVE (herein called the “Company”), a Virginia utility aggregation cooperative, hereby promises to pay to [_____], or registered assigns, the principal sum of [_____] Dollars (or so much thereof as shall not have been prepaid) on December 1, 2037, with interest computed on the basis of a 360‐day year of twelve 30‐day months (a) on the unpaid balance hereof at a rate of 3.33% per annum (plus, upon the occurrence and during the continuation of an Interest Rate Adjustment Event (as hereinafter defined), an additional 2% per annum) from the earlier of the date hereof or the most recent Interest Payment Date to which interest has been paid or duly provided for, payable semi-annually on the 1st day of June and December, commencing on December 1, 2017, until the principal hereof shall have become due and payable, and (b) to the extent permitted by law, on any overdue payment (including any overdue prepayment) of principal, any overdue payment of interest, any overdue payment of any Make-Whole Amount (as defined in the Fourth Supplemental Indenture referred to below), payable semiannually as aforesaid (or, at the option of the registered Holder hereof, on demand), at the Default Rate (as defined in the Fourth Supplemental Indenture referred to below).  Immediately upon the cessation or waiver of an Interest Rate Adjustment Event this Bond shall cease to bear the additional 2% per annum interest rate referenced in clause (a) above.

“Interest Rate Adjustment Event” means the occurrence of any of the following:

	
(a)
	
the Company defaults in the performance of Section 7.1(a) or (b) or Section 7.2 of the Bond Purchase Agreement (as defined below); or 
	
 

	
(b)
	
any representation or warranty made in writing by or on behalf of the Company or by any officer of the Company in the Bond Purchase Agreement (as defined below) or in any writing furnished in connection with the transactions 
	
 

 

 

		
contemplated by the Fourth Supplemental Indenture (referred to below) proves to have been false or incorrect in any material respect on the date as of which made and, with respect to representations and warranties made after the date hereof, for which accurate information has not since been provided in writing to the Holder of this Bond; 
	
 

provided, that, in either case, an Interest Rate Adjustment Event shall not be deemed to have occurred or be continuing with respect to any portion of the 2017 Series A Bonds for which the Default Rate is then applicable.

Subject to Section 11 of the Bond Purchase Agreement (defined below), payments of principal of, interest on, and any Make-Whole Amount with respect to this Bond are to be made in lawful money of the United States of America in accordance with the terms of the Indenture.

This Bond is one of the 2017 Series A Bonds (herein called the “Bonds”) issued pursuant to the Fourth Supplemental Indenture, dated as of July 6, 2017 (as from time to time amended, the “Fourth Supplemental Indenture”), between the Company and the Trustee named therein which amends and supplements the Second Amended and Restated Indenture of Mortgage and Deed of Trust, dated as of January 1, 2011 (as amended and supplemented from time to time, the “Indenture”) and is entitled to the benefits thereof and the Bond Purchase Agreement dated as of July 6, 2017 between the Company and the purchasers listed in Schedule A thereto (the “Bond Purchase Agreement”).  Each Holder of this Bond will be deemed, by its acceptance hereof, to have (i) agreed to the confidentiality provisions set forth in Section 18 of the Bond Purchase Agreement and (ii) made the representations set forth in Section 6 of the Bond Purchase Agreement.  Unless otherwise indicated, capitalized terms used in this Bond shall have the respective meanings ascribed to such terms in the Fourth Supplemental Indenture.

This Bond shall be registered in the name of the Holder hereof.  This Bond is transferable, as provided in the Indenture, only upon the registration books of the Company maintained by the Obligation Registrar, which shall be the Trustee, kept at its principal office, upon presentation at said office of this Bond with the written request of the registered owner hereof or his attorney duly authorized in writing, and a written instrument of transfer satisfactory to the Obligation Registrar duly executed by the registered owner or his duly authorized attorney.

The Bonds shall be issued as fully registered Bonds without coupons and in minimum denominations of $1.00 and any integral multiple of $1.00 in excess thereof. The Trustee may impose a charge sufficient to reimburse the Company or the Trustee for any tax, fee or other governmental charge required to be paid with respect to such exchange or any transfer of a Bond.  The cost, if any, of preparing each new Bond issued upon such exchange or transfer, and any other expenses of the Company or the Trustee incurred in connection therewith, shall be paid by in accordance with Section 3.06 of the Indenture.

This Bond is subject to optional redemption, in whole and not in part, at the times and on the terms specified in the Fourth Supplemental Indenture, but not otherwise. This Bond is also subject to optional prepayment, in whole or from time to time in part, at the times and on the terms specified in the Fourth Supplemental Indenture, but not otherwise. 

If an Event of Default under the Indenture occurs and is continuing, the principal of this Bond may be declared or otherwise become due and payable in the manner, at the price (including 

A-4

 

any applicable Make-Whole Amount) and with the effect provided in the Indenture.  In the event that the principal of this Bond shall have been declared or otherwise become due and payable as described in the preceding sentence, then, in addition to paying the Holder hereof the entire unpaid principal amount of this Bond and all accrued and unpaid interest hereon (including, but not limited to, interest accrued hereon at the Default Rate), the Company shall pay to the Holder hereof (to the full extent permitted by applicable law) an amount equal to the Make-Whole Amount determined in respect of such principal amount.

The Holder of this Bond shall have no right to enforce the provisions of the Indenture, or to institute action to enforce the covenants therein, or to take any action with respect to any default under the Indenture, or to institute, appear in or defend any suit or other proceeding with respect thereto, except as provided in the Indenture and the Bond Purchase Agreement.

All acts and proceedings required by law and by the Articles of Incorporation and Bylaws of the Company necessary to make the 2017 Series A Bonds issued under the Indenture, when executed by the Company, authenticated and delivered by the Trustee and duly issued, the valid, binding and legal obligations of the Company, in accordance with its terms, have been done and taken.

It is the intention of the Holder to comply with the usury laws of the Commonwealth of Virginia and of the United States of America.  This Bond is hereby expressly limited such that in no contingency or event whatsoever, whether by reason of acceleration, prepayment, or otherwise, shall the amount of interest contracted for, charged or received by the Holder for the use, forbearance, or detention of the principal indebtedness or interest hereof, which remains unpaid from time to time, exceed the highest maximum rate permitted by applicable law.  If fulfillment of any provisions hereof, at the time of performance of such provisions shall be due, shall involve transcending the valid limits prescribed by applicable law, then, ipso facto, the obligation to be fulfilled shall be reduced to the maximum rate allowed by applicable law.  If any Holder receives as interest an amount which will exceed the maximum rate allowed by applicable law, such amount shall be applied to the reduction of the principal amount owing hereunder or on account of any other principal indebtedness owed to Holder and not to the payment of interest, or if such excessive interest exceeds the unpaid balance of principal hereof and such other indebtedness, such excess shall be refunded.  To the extent not prohibited by applicable law, determination of the maximum rate allowed by applicable law shall at all times be made by amortizing, prorating, allocating and spreading in equal parts during the full term of this Bond, all interest at any time contracted for, charged or received from the Company in connection with this Bond, so that the actual rate of interest on account of such indebtedness is uniform throughout the term of this Bond.  The terms of this paragraph shall control and supersede any other provisions of this Bond.

This Bond shall be construed in accordance with and governed by the law of the Commonwealth of Virginia.

No covenant or agreement contained in this Bond, the Indenture or the Fourth Supplemental Indenture shall be deemed to be a covenant or agreement of any official, officer, agent or employee of the Company in his individual capacity, and no officer of the Company executing this Bond shall be liable personally on this Bond or be subject to any personal liability or accountability by reason of the issuance of this Bond.

A-5

 

This Bond shall not be entitled to any benefit under the Indenture or be valid until this Bond shall have been authenticated by the execution by the Trustee, or its successor as Trustee, of the Certificate of Authentication inscribed hereon.

 

[Remainder of page intentionally left blank; signature page follows.]

A-6

 

IN WITNESS WHEREOF, the Company has caused this Bond to be executed by a duly authorized officer of the Company.

OLD DOMINION ELECTRIC COOPERATIVE

			
	
 
	
By:
	
 

	
 
	
Name:
	
Robert L. Kees

	
 
	
Title:
	
Senior Vice President and Chief Financial Officer

 

A-7

 

This is one of the Obligations of the series designated therein referred to in the within‐mentioned Indenture.

BRANCH BANKING AND TRUST COMPANY

as Trustee

 

			
	
 
	
By:
	
 

	
 
	
 
	
Authorized Signatory

 

 

 

		
	
Date of Authentication:
	
 

	
 
	
 

 

 

 

A-8

 

EXHIBIT B

Real PROPERTY

ACCOMACK COUNTY 

 

A parcel of land containing approximately 16.289 acres of land lying and being in Lee District, Accomack County, Commonwealth of Virginia, which 16.289 acres was acquired by two separate deeds as described as follows:

 

By deed from Addison F. and Katherine W. Hopkins to Eastern Shore Public Service Company of Virginia, dated January 27, 1953, and recorded in the Clerk's Office of the Circuit Court of Accomack County, Virginia (the "Clerk's Office"), in Deed Book 210, at page 25; and

 

By deed from Addison F. Hopkins, widower, to Delmarva Power & Light Company of Virginia, dated May 14, 1969, and recorded in the aforesaid Clerk's Office in Deed Book 282, at page 130.

 

AND FURTHER BEING DESCRIBED AS:

 

Beginning at a point on the northeast r/w line of Taylor Road (Route 650) at its intersection with the southeast r/w line of the property now or formerly of Atlantic Canonie, formerly Eastern Shore Railroad, in a direction of North 26° 05' 57" East for a distance of 807.33 feet to a concrete monument marking the corner of the property surveyed hereon and the property now or formerly of Billy Joe Colona, thence along the property now or formerly of Billy Joe Colona in a direction of South 40° 53' 07" East for a distance of 415.41 feet to a concrete monument, thence along the property now or formerly of Billy Joe Colona, and along the property now or formerly of Thomas F. & Phyllis J. Webb and along the property now or formerly of Randy E. Eller and Lance J. Eller, another 561.12 feet on the same course to another concrete monument, thence along the property now or formerly of Randy E. Eller and Lance J. Eller in a direction of South 40° 36' 47" East for a distance of 114.70 feet to a concrete monument marking the corner of the property hereon surveyed, which survey is recorded with a certain Easement and License Agreement between Delmarva Power and Light Company and Conectiv Delmarva Generation, Inc., dated July 1, 2000 and recorded in the aforesaid Clerk's Office in Deed Book 834, at page 189, and the property now or formerly of Thomas S. Hopkins, thence from said concrete monument in a direction of South 47° 57' 32" West for a distance of 750.92 feet to a concrete monument on the northeastern r/w line of Taylor Road (Route 650) thence with the northeast r/w line of Route 650 along to curve to the left whose radius is 1429.23 feet, arc length is 234.46 feet, and whose chord bearing is North 42° 36' 25" West and chord distance is 234.20 feet, thence with the northeastern r/w line of Route 650 along a curve to the right whose radius is 1072.40 arc length is 178.03 feet and whose chord bearing is North 42° 33' 03" West and chord distance is 177.83 feet, thence with the northeast r/w line of Route 650 in a direction of North 37° 47' 42" West for a distance of 379.43 feet to the point of beginning. This

property is bounded on the Northwest, by the lands now or formerly of Atlantic Canonie, formerly Eastern Shore Railroad, on the northeast by the properties now or formerly of Billy Joe CoIona, Thomas F. & Phyllis J. Webb, and Randy E. Eller & Lance J. Eller, on the southwest by property now or formerly of Thomas S. Hopkins and on the southeast by Taylor Road (Route 650).

 

SUBJECT, however to all existing exceptions, reservations, conditions, restriction, covenants, agreements, limitations and waivers that may apply to the property or any part thereof.

 

 

 

ALBEMARLE/LOUISA COUNTY

 

ALL of those two (2) certain lots or parcels of land, one (1) lying and being partly in the Rivanna District of Albemarle County, Virginia and partly in the Green Springs District of Louisa County, Virginia, designated as Lot "A3", containing 91.767 acres, more or less, and the other lying and being in the Green Springs District of Louisa County, Virginia, designated as Tract "B", containing 30.875 acres, more or less, and both being more particularly shown on a plat of survey prepared by James H. Bell, Jr., P.C., dated April 16, 1985, revised May 9, 1985, and entitled "Plat of Survey for Four Tracts of Land Containing a Total of 285.946 Acres Standing in the name of Liberty Fabrics of New York, Located in Albemarle and Louisa Counties, Virginia" of record in the Office of the Clerk of the Circuit Court of Albemarle County, Virginia, in Deed Book 846, page 543.  

 

BEING the same real estate conveyed to Old Dominion Generation, L.L.C., a Virginia limited liability company, by deed from Liberty Fabrics, Inc., a Delaware corporation, dated June 7, 2000, recorded June 9, 2000, in the Clerk's Office, Circuit Court, Albemarle County Virginia, in Deed Book 641, page 570 and recorded on June 9, 200 in the Office of the Clerk of the Circuit Court for Albemarle County, Virginia as Instrument No. 0007468.

 

Deed of Confirmation confirming title to the property in the Grantee was recorded on November 30, 2001 in Deed Book 2117, page 362 in Albemarle County, Virginia.  

 

Deed of Confirmation confirming title to the property in the Grantee was recorded on June 30, 2003 in Deed Book 877, page 530 in Louisa County, Virginia and in Deed Book 2533, page 544 in Albemarle County, Virginia.  

 

Deed of Confirmation recorded April 23, 2004 in Deed Book 2734, page 599 in Albemarle County, Virginia and in Deed Book 841, page 452 in Louisa County, Virginia to correct and confirm the information contained in the prior Deed.

 

SUBJECT, however to all existing exceptions, reservations, conditions, restriction, covenants, agreements, limitations and waivers that may apply to the property or any part thereof.

B-10

 

FAUQUIER COUNTY

 

THE PLANT SITE

 

PARCEL ONE (THE "KING" TRACT)

 

ALL of that certain lot or parcel of land situate on State Route 782 (formerly 755) near Remington in Lee Magisterial District, Fauquier County, Virginia, containing 250.534 acres, more or less, as shown on plat of survey prepared by J. Horace Jarrett, C.L.S., dated December 9, 1976 and further described by Jarrett by metes and bounds description.  A copy of said survey and metes and bounds description prepared by Jarrett are attached to a Deed recorded in Deed Book 397, page 443 among the Fauquier County, Virginia land records. 

 

PARCEL TWO (THE VON BRAND TRACT)

 

ALL that certain tract or parcel of land located about 2 miles northeast of Remington Lee District, Fauquier County, Virginia, containing 28.80 acres, and more particularly described by plat and survey of J. J. Covell attached to Deed recorded in Deed Book 248, page 613 in the Clerk's Office, Circuit Court, Fauquier County, Virginia:

 

BEGINNING at a point in the center of Rt. 755; corner with Pheasant Valley Farm and the tract sold Haught; thence with Haught N. 88-05 E. 321.71' to a fence corner at a gap; thence continuing with Haught, a fence line, S 71-49 E. 1113.3', N 20-19 E. 321.30' to a oak at an angle, N. 34-39 W. 273.5' to a walnut, N. 39-42 E. 108.8' to a cedar at an angle, corner in the Haught line with remaining Wight property; thence a new line with Wight S. 67-47 E. 849.23' to a point in the center of March Run, corner with [BLANK IN SOURCE DEED], thence running with the center of Marsh Run, line with [BLANK IN SOURCE DEED], S. 27-22 W. 504.15', S. 24-34 E. 332.47', S. 39-30 E. 228.18' to a point opposite a fence line; corner with the Pheasant Valley Farm; thence with that tract, the fence crooked but running in general with the line, S. 77-08 W. 434.39', N. 62-52 W. 1827.19', N. 38-50 W. 136.00' to a corner with the REA lot; thence with that lot as fenced N. 51-10 E. 50.0'; N. 38-50 W. 100.0', S. 51-10 W. 50.0' to the Pheasant Valley line; thence with that line N 38-50 W. 65.84' to the beginning.  

 

TOGETHER WITH that certain right of way across the strip described as follows:

 

BEGINNING at a point in the center of Rt. 755, the beginning point of the 28.80 acre tract described above; thence with the north line of the present Haught outlet N. 73-03 E. 105.33', N. 83-18 E. 143.88', S. 64-46 E. 86.11' to a fence corner at a gap, a corner in the 28.80 acre tract; thence with that tract S. 88-05 W. 321.71' to the beginning. 

 

BEING the same real estate conveyed to Old Dominion Electric Cooperative, a Virginia utility aggregation cooperative, by deed of confirmation from Marsh Run Generation, LLC, a Virginia limited liability company, dated April 30, 2003, recorded July 7, 2003, in the Clerk's Office, Circuit Court, Fauquier County, Virginia, in Deed Book 1041, page 2341, in the aforesaid Clerk's Office as Instrument No. 03-14145, and further confirmed by the deed of confirmation between those same parties dated April 1, 2004, acknowledged April 1, 2004, and recorded April 5, 2004, in the Clerk's Office, Circuit Court, Fauquier County, in Deed Book 1091, pages 659 through 666, in the aforesaid Clerk's Office as Instrument No. 000840880008. 

 

BEING the same real estate conveyed to Marsh Run Generation, LLC, a Virginia limited liability company, by deed from Theodor P. von Brand and Shirley M. von Brand, husband and wife, dated October 5, 2001, recorded October 19, 2001, in the Clerk's Office, Circuit Court, Fauquier County, Virginia, in Deed Book 0920, page 1415 and rerecorded August 7, 2002 in the aforesaid Clerk's Office as Instrument No. 02-13836. 

 

AND FURTHER BEING the same real estate conveyed to Theodor P. von Brand and Shirley M. von Brand, husband and wife, by deed from Joseph E. Wight, Jr. and Harriet D. Wight, dated August 17, 1968, recorded August 19, 1968, in the Clerk's Office, Circuit Court, Fauquier County, Virginia, in Deed Book 248, page 613.

 

PARCEL 3 (THE "LEEPSON" EASEMENT)

 

The right granted to the Old Dominion Electric Cooperative for access over certain land owned by Mark Leepson and Janna Murphy Leepson (collectively, "Leepson") located in Fauquier County, Virginia pursuant to the terms of the certain Easement Agreement dated February 14, 2003 between Leepson, as grantor and Marsh Run Generation, LLC (predecessor in interest of the Company) and the Company, as grantee, which is recorded in the Office of the Clerk of the Circuit Court for Fauquier County, Virginia in Book 1033, page 310.  

B-11

 

 

PARCEL FOUR (THE VIRGINIA POWER EASEMENT)

 

The right granted to the Company for access over certain land owned by Virginia Electric and Power Company, trading as Dominion Virginia Power ("Virginia Power") located in Fauquier County, Virginia pursuant to the terms of the certain Easement Agreement dated February 21, 2003 between Virginia Power, as grantor and Marsh Run Generation, LLC (predecessor in interest of the Company) and the Company, as grantee, which is recorded in the Office of the Clerk of the Circuit Court for Fauquier County, Virginia in Book 1022, page 1041.  

 

LESS AND EXCEPT that certain 0.9755 parcel of land conveyed to Marvin Maxwell Bowen, Jr. by deed recorded in Deed Book 1288, page 289.  

 

SUBJECT, however to all existing exceptions, reservations, conditions, restriction, covenants, agreements, limitations and waivers that may apply to the property or any part thereof.

B-12

 

CECIL COUNTY, MARYLAND

 

PARCEL 1:

 

ALL that lot or parcel of land situate and lying in the Eighth Election District of Cecil County, State of Maryland, said lands being shown as "Add-On Area A" on a plat entitled "Addition of Land Survey for lands of Emory F. Holbrook and Sara Eva Holbrook", as prepared by Northern Bay Land Planning, Engineering and Surveying Corporation, dated December 20, 2000 and filed in the Cecil County Office of Planning and Zoning as Minor Subdivision No. 3284, and more particularly described as follows:

 

BEGINNING for the same at a point in or near the centerline of Old Mill Road, with said point being the Northerlymost corner of the herein described parcel and the Northeast corner of the lands now or formerly of Walter T. Bragg and Claudia D. Bragg, his wife, as described in a Deed recorded among the Land Records of Cecil County in Liber N.D.S. No. 168, folio 49; thence running in or near the centerline of Old Mill Road, South 60 degrees 54 minutes 48 seconds East 285.61 feet to a point; thence continuing in or near the centerline of Old Mill Road, south 61 degrees 42 minutes 26 seconds East 14.65 feet to a point; thence running by a new line of division through lands of Emory F. Holbrook and Sara Eva Holbrook, his wife, South 26 degrees 36 minutes 15 seconds West 30.00 feet to a capped pin set; thence continuing by a new line of division through lands of Emory F. Holbrook and Sara Eva Holbrook, his wife, South 26 degrees 38 minutes 15 seconds West 638.12 feet to a capped pin set on a line of lands now or formerly of PECO Energy Company (W.L.B. 545/001); thence running with the same, North 66 degrees 09 minutes 00 seconds West 357.08 feet to an iron pipe found at a corner of lands now or formerly of Douglas Otto Moore and Diane Margaret Bell (W.L.B. 548/373): thence running with the same, North 11 degrees 42 minutes 53 seconds East 234.95 feet to a corner of lands now or formerly of the aforementioned Walter T. Bragg and Claudia D. Bragg, his wife (N.D.S. 168/049); thence running with the same, South 77 degrees 29 minutes 15 seconds East 120.81 feet to a capped pin set; thence continuing by the same, North 26 degrees 38 minutes 15 seconds east 411.60 feet to a capped pin set; thence continuing with the same, North 26 degrees 38 minutes 15 seconds East 30.00 feet to the place of beginning:  Containing 5.185 acres of land, more or less. 

 

PARCEL 2:

 

ALL that lot or parcel of land situate and lying in the Eighth Election District of Cecil County, State of Maryland, said lands being shown as "Parcel No. 1" on a plat entitled "Boundary Survey Plan for Land of Frederick E. Cronmiller and Helen Cronmiller", as prepared by Northern Bay Land Planning, Engineering and Surveying Corporation, dated January 15, 2001, and more particularly described as follows:

 

BEGINNING for the same at a capped pin set at the Northeast corner of the herein described parcel, with said point of beginning being located on the Westerly right-of-way line of U.S. Route 222, as shown on State Roads Commission of Maryland Plat Nos. 9228, 9229 and 9230, said point of beginning is further described as being located at the southerlymost corner of lands now or formerly of Atlantic Seaboard Corporation as described in a Deed found among the Land Records of Cecil County in Liber W.A.S. No. 134, folio 338 (Parcel No. 1); thence binding along the Westerly right-of-way line of said U.S. Route 222, South 28 degrees 40 minutes 33 seconds West 2,027.05 feet to a capped pin set; thence leaving said Westerly right-of-way and running North 61 degrees 19 minutes 27 seconds West 142.55 feet to a capped pin set; thence South 28 degrees 40 minutes 33 seconds West 201.06 feet to a capped pin set on the right-of-way line of lands of the State Roads Commission of Maryland, as shown on the aforementioned Plat No. 9228; thence running by the same, North 60 degrees 53 minutes 09 seconds West 36.10 feet to a capped pin set; thence continuing by the same, South 29 degrees 06 minutes 51 seconds West 20.00 feet to a PK nail set in or near the centerline of Old Mill Road; thence running in or near the centerline of Old Mill Road, by the following twelve courses and distances:  (1) North 61 degrees 42 minutes 14 seconds West 115.20 feet to a point; (2) North 61 degrees 15 minutes 05 seconds West 268.77 feet to a point; (3)  North 62 degrees 01 minute 20 seconds West 263.83 feet to a point; (4)  North 61 degrees 42 minutes 26 seconds West 260.72 feet to a point; (5)  North 60 degrees 54 minutes 48 seconds West 285.61 feet to a point; (6)  North 60 degrees 39 minutes 25 seconds West 203.37 feet to a point; (7)  North 60 degrees 25 minutes 19 seconds West 225.68 feet to a point; (8)  North 63 degrees 24 minutes 42 seconds West 162.15 feet to a point; (9)  North 68 degrees 00 minutes 32 seconds West 174.17 feet to a point; (10)  North 70 degrees 40 minutes 05 seconds West 107.66 feet to a point; (11)  North 67 degrees 12 minutes 22 seconds West 105.76 feet to a point; and (12)  North 60 degrees 47 minutes 50 seconds West 56.68 feet to a PK nail set; thence leaving said centerline of Old Mill Road and running North 03 degrees 03 minutes 52 seconds East 50.00 feet to a capped pin set; thence continuing North 03 degrees 03 minutes 52 seconds east 293.47 feet to a capped pin set at the southwest corner of lands now or formerly of Cecil A. Moore (N.D.S. 30/589); thence running with the same, North 87 degrees 29 minutes 06 seconds East 612.34 feet to a capped pin set; thence continuing by the same, along an existing fence line, 

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North 07 degrees 08 minutes 02 seconds West 699.24 feet to a capped pin set at a point on the division line between the States of Maryland and Pennsylvania, and on a line of lands now or formerly of The Nature Conservancy, as described in a deed found among the Land Records of Lancaster County, Pennsylvania, in Deed Book No. 5230, folio 117; thence running in part with the same, along the division line between the States of Maryland and Pennsylvania, and in part by other lands of Frederick R. Cronmiller and Helen Cronmiller, as described in a deed found among the Land Records of Lancaster County, Pennsylvania, in Deed Book M, Volume 54, folio 744, North 89 degrees 18 minutes 23 seconds East 2,421.70 feet to a capped pin set on a line of lands now or formerly of The Atlantic Seaboard Corporation (W.A.S. 134/338 - Parcel No. 2), South 02 degrees 32 minutes 33 seconds West 17.91 feet to a capped pin set on a line of lands now or formerly of The Columbia Gas Transmission Corporation (W.L.B. 949/094; thence running with the same, North 67 degrees 24 minutes 27 seconds West 1.85 feet to a capped pin set; thence South 02 degrees 51 minutes 08 seconds West 73.45 feet to a capped pin set; thence continuing by the same, in part, and by lands now or formerly of Atlantic Seaboard Corporation (W.A.S. 134/338 - Parcel No. 1), South 61 degrees 19 minutes 27 seconds East 290.21 feet to the place of beginning:  Containing 97.345 acres of land more or less. 

 

BEING the same real estate conveyed to Rock Springs Generation, LLC, by deed from Frederick E. Cronmiller and Helen Cronmiller, dated January 27, 2001, recorded in the Land Records of Cecil County, Maryland, in Liber 959, folio 719.  

 

Parcels 1 and 2 are also the same lots of ground which by Deed dated May 11, 2001 and recorded among the Land Records of Cecil County in Liber 1000, folio 519 were granted and conveyed by Rock Springs Generation, LLC to Outwater Funding, Limited Partnership as to a undivided 1/3 interest.  All that lot of ground situate in Cecil County, State of Maryland. 

 

LESS AND EXCEPT that parcel of land conveyed by deed dated December 4, 2001 by Rock Springs Generation, LLC and Outwater Funding, Limited  Partnership to Board of Commissioners of Cecil County and recorded among the land deeds of Cecil County, Maryland in Book 1735, page 234.

 

SUBJECT, however to all existing exceptions, reservations, conditions, restriction, covenants, agreements, limitations and waivers that may apply to the property or any part thereof.

 

PARCEL THREE:

 

All that tract or parcel of land situate in the Eighth Election District of Cecil County, State of Maryland, on the Northerly side of, and back from, a public road running Northwesterly from Rock Springs in the State of Maryland leading toward the Pennsylvania line, which is more particularly described as follows:

 

Beginning for the same at a stake in the Mason-Dixon line at the Northeasterly corner of land now or formerly of W. West Foster; and running thence by and with said Mason-Dixon line Southwesterly corner of land now or formerly of Burkins; thence by and with said Burkins land the following two courses and distances; (1) South 05 degrees 43 minutes East 699.00 feet to a stake; and (2) North 88 degrees 53 minutes West 612.00 feet to a railroad spike in the Easterly line of the aforementioned Foster land; thence by and with said Foster land North 04 degrees 11 minutes East 676.68 feet to the place of beginning; containing 8.83 acres of land, more or less.

 

TOGETHER WITH the use of the 30.00 foot right-of-way over the Foster Land for the purposes of ingress, egress and regress to and from the hereinbefore described land to and from the public road, and for the installation of utility lines.

 

And being the same property conveyed to Old Dominion Electric Cooperative, a Virginia utility aggregation corporation, by deed from Cecil A. Moore and Gail S. Moore, dated May 6, 2014, and recorded May 8, 2014, in the Land Records of Cecil County, Maryland in Liber 3568, folio 103.

 

PARCEL FOUR:

All that lot or parcel of ground situate and lying in the Eighth Election District of  Cecil County, State of Maryland, being more particularly described as:

Beginning for the same at a point in the centerline of Old Mill Road also known as Pleasant Grove Road and on the original outline of the land of which the parcel now being described is a part; thence running in the centerline of Old 

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Mill Road North 61 degrees 10 minutes 10 seconds West 218.10 feet and North 62 degrees 43 minutes 10 seconds West 440.71 feet; thence leaving Old Mill Road and binding along the Easterly outline of the land previously conveyed to the Grantee by Deed dated February 12, 1984, and recorded among the Land Records of Cecil County at Liber NDS No. 133, folio 379; North 00 degrees 50 minutes 00 seconds West 746.21 feet to intersect the Maryland-Pennsylvania Line; thence  binding along said line North 89 degrees 10 minutes and 00 seconds East 434.73 feet to the Mason-Dixon stone on the said line and there continuing the same course North 89 degrees 10 minutes and 00 seconds East 195.69 feet to a point on the before mentioned Easterly outline of the original tract; thence binding thereon South 01 degrees 59 minutes 00 seconds West 1,063.09 feet to the point of beginning; containing 12.6069 acres more or less according to a survey by APR Associates, Inc. dated January 27, 1988.

And being the same property conveyed to Old Dominion Electric Cooperative, a Virginia utility aggregation cooperative, a/k/a Old Dominion Electric Cooperative, Inc., by deed from Bruce Wayne Justice and Charlotte I. Justice, dated June 3, 2014, and recorded June 17, 2014, among the Land Records of Cecil County in Liber  3583, folio 121.

 

Interest in Ground Lease:

 

ALL right, title and interest of Grantor in and to that certain Ground Lease Agreement dated as of December 18, 2002, by and between Rock Springs Generation, LLC, a Virginia limited liability company and CED Rock Springs, Inc., a Delaware corporation (collectively, “Lessor”) and Rock Springs Generation, LLC, as Lessee, a Memorandum of which Ground Lease Agreement is recorded at Book 1293, page 034 of the Land Records of Cecil County, Maryland.

 

 

Interest in Ownership Agreement:

 

ALL right, title and interest of Grantor under the Amended and Restated Rock Springs Construction and Ownership Agreement between CED Rock Springs, Inc., a Delaware corporation, Rock Springs Generation, LLC, a Virginia limited liability company and Old Dominion Electric Cooperative, a Virginia utility aggregation cooperative dated as of October 31, 2001, which is recorded in the Land Records of Cecil County kin Book 1292, Page 567.

 

PARCEL FOUR

 

Description of lands situate in the Eighth Election District of Cecil County, Maryland. Said lands being shown as Lot 2 on a minor subdivision plan entitled Minor Subdivision for Lands of Old Dominion Electric Cooperative & Essential Power Rock Springs, LLC as prepared by Northern Bay Land Planning Engineering and Surveying Corporation, dated August 26, 2015 as recorded in the Office of the Recorder of Deeds in and for Cecil County, Maryland in Plat Cabinet PC No. 1118, at folio 2 and being further indexed as Minor Subdivision No. 4017, with said lands being more particularly described as follows to wit:

Beginning for the same at the southwest corner of the herein described parcel with said point of beginning also being located on the northerly right of way line of Old Mill Road as conveyed in fee simple to the Board of County Commissioners of Cecil County and described in a deed found among the Land Records of Cecil County, Maryland in Liber W.L.B. No. 1735 at folio 234. Said point of beginning is further described as being located on a line of lands now or formerly of Old Dominion Electric Cooperative as described in a deed found among the Land Records of Cecil County, Maryland in Liber D.W.L. No. 3583 at folio 121 and is further situated at positional coordinates N 748,366.3579 E 1,546,877.3661 as referenced to the Maryland State Plane Coordinate System; thence leaving said point of beginning and in accordance with a survey by Northern Bay Land Planning, Engineering and Surveying Corporation, with the courses herein based upon the Maryland State Plane Coordinate System (NAD 83/1991) the following courses and distances: binding along said lands now or formerly of said Old Dominion Electric Cooperative, North 03°03'52" East a distance of 16.58 feet to a capped pin set; thence continuing by the same, North 03°03'52" East a distance of 293.47 feet to a capped pin set at the southwest corner of other lands now or formerly of Old Dominion Electric Cooperative as described in a deed found among the Land Records of Cecil County, Maryland in Liber D.W.L. No. 3568 at folio 103 ; thence running by and with the same, North 87°29'06" East a distance of 612.34 feet to a capped pin set; thence continuing by and with said lands now or formerly of Old Dominion Electric Cooperative and along an existing fence line, North 07°08'02" West a distance of 699.24 feet to a capped pin set at a point on the division line between the State of Maryland and the Commonwealth of Pennsylvania and on the line of lands now or formerly of Lancaster County Conservancy as described in a deed found among the Land Records of 

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Lancaster County, Pennsylvania in Deed Record 5349580; thence running by and with said division line between the State of Maryland and the Commonwealth of Pennsylvania and lands of the aforesaid Lancaster County Conservancy (Deed Record 5349580) in part and in part by lands now or formerly of the Rock Springs Generation LLC and CED Rock Springs, Inc. as described in the following deeds found among the Land Records of Lancaster County, Pennsylvania: Deed Book No. 6946 at folio 483, Deed Record 5141520 and, Deed Record 5141521, North 89°18'23" East a distance of 2,421.70 feet, to a capped pin set at the northwesterly corner of lands now or formerly of Atlantic Seaboard Corporation as described in a deed found among the Land Records of Cecil County, Maryland in Deed Book W.A.S. 134, at folio 338 being Parcel No. 2 of said deed; thence, running by and with the same South 02°32'33" West a distance of 17.91 feet to a capped pin set in the line of lands now or formerly of Columbia Gas Transmission Corporation as described in a deed recorded among the Land Records of Cecil County, Maryland in W.L.B. 949, at folio 94; thence, running by and with the same, North 67°24'27" West a distance of 1.85 feet to a capped pin set; thence, continuing by and with the same, South 02°51'08" West a distance of 73.45 feet to a capped pin set; thence, continuing by and with the same in part and, running by and with other lands now or formerly of the aforementioned Atlantic Seaboard Corporation as recorded in the Land Records in and for Cecil County, Maryland in Deed Book W.A.S. 134. at folio 338, being Parcel No. 1 of said deed, South 61°19'27" East a distance of 290.21 feet to a capped pin set on the northwesterly right-of-way line of U.S. Route 222 (Rock Springs Road); thence running by and with the same South 28°40'33" West a distance of 807.46 feet to a point; thence, thence leaving said right-of-way line and running by and with lands of Lot No. 1 as shown on the above referenced Minor Subdivision Plan for lands of Old Dominion Electric Cooperative & Essential Power Rock Springs, LLC, the following fifteen (15) courses and distances:

 

1.North 31°42'32" West a distance of 446.37 feet to a point; thence

2.North 41°18'29" West a distance of 70.17 feet to a point; thence,

3.North 33°00'06" West a distance of 101.81 feet to a point; thence,

4.North 45°34'39" West a distance of 180.31 feet to a point; thence,

5.North 86°54'43" West a distance of 504.56 feet to a point; thence,

6.South 78°38'32" West a distance of 227.89 feet to a point; thence,

7.South 38°40'37" West a distance of 52.33 feet to a point; thence,

8.South 00°01'07" West a distance of 185.05 feet to a point; thence,

9.South 24°06'00" West a distance of 30.88 feet to a point; thence,

10.South 00°04'01" West a distance of 470.25 feet to a point; thence,

11.South 89°34'51" West a distance of 221.38 feet to a point; thence,

12.South 39°28'02" West a distance of 142.20 feet to a point; thence,

13.South 45°00'00" West a distance of 271.50 feet to a point; thence,

14.North 45°00'00" West a distance of 23.83 feet to a point; thence,

15.South 45°00'00" West a distance of 241.41 feet to a point on the northeasterly right-of-way line of Old Mill Road as conveyed in fee simple to the Board of County Commissioners of Cecil County and as described in a deed found among the Land Records of Cecil County, Maryland in Liber W.L.B. No. 1735 at folio 234; thence, running by and with the same by the following seven (7) courses and distances:

 

1.North 60°39'25" West - 149.23 feet to a point; thence,

2.North 60°25'19" West - 226.31 feet to a point; thence,

3.North 63°24'42" West - 164.14 feet to a point: thence.

4.North 68°00'32" West - 176.06 feet to a point; thence,

5.North 70°40'05" West - 107.45 feet to a point; thence,

6.North 67°12'22" West - 103.17 feet to a point; thence,

7.North 60°47'50" West - 69.72 feet to the place of beginning.

Containing 49.879 acres of land, more or less

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LANCASTER COUNTY, PA

 

 

 ALL that tract of parcel of land situate in the Township of Fulton, County of Lancaster, Commonwealth of Pennsylvania, said lands being shown on "Parcel No. 2" on a plat entitled "Boundary Survey Plan for lands of Frederick E. Cronmiller and Helen Cronmiller", as prepared by Northern Bay Land Planning, Engineering and Surveying Corporation, dated January 15, 2001, said lands being more particularly described, as follows:

 

BEGINNING for the same at an iron pin found at the westerlymost corner of the herein described parcel, being a common corner of lands now or formerly of The Nature Conservancy, as directed in a Deed found among the Land Records of Lancaster County, Pennsylvania, in Deed Book 5230, Folio 117; thence running with the same, North sixty-three degrees forty-nine minutes eighteen seconds East (N 63 degrees 49' 18" W) seven hundred eighty-three and ninety-three hundredths (783.93) feet to an iron pin found; thence continuing by the same, North sixty-three degrees forty-nine minutes eighteen seconds East (N 63 degrees 49' 18" E) fifty-four and twenty-seven hundredths (54.27) feet to a point located on the north side of Mason Dixon Road (TR 301); thence crossing said Mason Dixon Road (TR 301) and running South forty-eight degrees ten minutes forty-two seconds East (S 48 degrees 10' 42" E) one thousand twenty-two and thirty-four hundredths (1,022.34) feet to a capped pin set on the southerly side of Mason Dixon Road; thence running North eighty-seven degrees thirty-six minutes forty-seven seconds East (N 87 degrees 36' 47" E) one hundred eleven and thirty-nine hundredths (111.39) feet to a PK nail set in the bed of Mason Dixon Road (TR 301); thence running with lands now or formerly of The Manufacturers Light and Heat Co. (M-52-60), South two degrees thirty-three minutes three seconds West (S 02 degrees 33' 03"W) twenty-nine and thirty-four hundredths (29.34) feet to a capped pin set; thence continuing by the same, South two degrees thirty-two minutes thirty-three seconds West (S 02 degrees 32' 33" W) seventy-nine and eighty-three hundredths (79.83) feet to a capped pin set on the dividing line of the States of Pennsylvania and Maryland; thence binding along the same, and by other lands now or formerly of Frederick R. Cronmiller and Helen Cronmiller, South eighty-nine degrees eighteen minutes twenty-three seconds West (S 89 degrees 18' 23" W) one thousand two hundred ten and sixty-six hundredths (1,210.66) feet to a point being a common corner of the herein described tract and lands now or formerly of the aforementioned The Nature  Conservancy (5320/117); thence running with the same, North forty-three degrees thirty-four minutes four seconds West (N 43 degrees 34' 04" W) ten and sixty-three hundredths (10.63) feet to a field stone found; thence continuing with the same North forty-three degrees thirty-four minutes four seconds West (N 43 degrees 34' 04" W) five hundred eighty-four and twenty-one hundredths (584.21) feet to the place of beginning. 

 

BEING the same real estate conveyed to Rock Springs Generation, LLC, in fee, by deed from Frederick R. Cronmiller and Helen Cronmiller, husband and wife, dated January 17, 2001, recorded February 9, 2001, in Lancaster County, Pennsylvania, in Record Book 6946 page 483.

 

SUBJECT, however to all existing exceptions, reservations, conditions, restriction, covenants, agreements, limitations and waivers that may apply to the property or any part thereof.

 

DESCRIPTION OF PERMANENT EASEMENT TO BE CONVEYED THROUGH THE LANDS OF SCOTT K. BRINTON AND KATHERINE E. BRINTON

Beginning for the same at a point (N 153,820.09, E 2,401,573.20) being located at the end of the 1st or North 55°07’15” East – 47.03 foot line of lands having been conveyed to G. Victor Brinton to Scott K. Brinton and Katherine E. Brinton, husband and wife (the “Grantors”), by deed dated January 6, 2005 and recorded among the Land Records of Lancaster County, Pennsylvania in Instrument No. 5391253 and hereafter referred to as land of the Grantors.  Said point of beginning being a common corner with Premises No 1, Tract No. 1, Parcel No. 2 of land conveyed by Barbara E. Long Unified Credit Trust to Graywood Farms, LLC by deed dated June 1, 2006 and recorded among the Land Records of Lancaster County, Pennsylvania in Instrument No. 5528326.

Thence, leaving said point of beginning, in accordance with a survey by Northern Bay Land Planning, Engineering, and Surveying Corporation, with the courses herein based upon the Pennsylvania State Plane Coordinate (South 3702) System, (NAD 83/2011) the following courses and distances;

1) By the 2nd or South 18°40’16” East – 727.50 foot line of said lands of the Grantors, as now surveyed, South 27°12’43” East – 94.50 feet to a point located on the Northerly Right of Way Line of Riverview Road – T-459, a 40 foot wide Right of Way;

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2) Thence running by the same, and running through lands of the Grantors, North 46°17’28’ West, a distance of 47.27 feet to a point of curvature for said Right of Way;

3) Thence, leaving said Right of Way Line and continuing through lands of the Grantors, North 46°17’28” West, a distance of 43.59 feet to a point located on the aforementioned 1st or North 55°07’15” East – 47.03 foot line of lands having been conveyed by G. Victor Brinton to Scott K. Brinton and Katherine E. Brinton, husband and wife, by deed dated January 6, 2005, and recorded among the Land Records of Lancaster County, Pennsylvania in Instrument No. 5391253.

4)Thence, running by the same as now surveyed, North 46°35’32” East, a distance of 30.93 feet to the point of beginning of the herein described permanent easement.

Containing 1,403 square feet or 0.032 acres of land more or less.

Being a part of the land which was conveyed to Scott K. Brinton and Katherine E. Brinton, husband and wife, by deed dated January 6, 2005, and recorded among the Land Records of Lancaster County, Pennsylvania in Instrument No. 5391253.

The above described fifty foot wide (50’) Permanent Easement to be conveyed is shown on a Plan entitled “Plan for Easement across Property of Scott K. Brinton and Katherine E. Brinton” dated August 14, 2013, and recorded with that certain Deed of Easement dated January 9, 2014, and recorded among the land records in the Office of Recorder of Deeds in and for Lancaster County, Pennsylvania as Instrument No. 6130094.

DESCRIPTION OF PERMANENT EASEMENT TO BE CONVEYED THROUGH THE LANDS OF ROBERT E. KIRK

Easement Area A:

Beginning for the same at a point located on the northwesterly right-of-way line of Township Road T-311 (Black Barren Road), at 33 feet wide, at positional coordinates N 150,439.66, E 2,407,005.35 as referenced to the Pennsylvania State Plane Coordinate System, South Zone (3702); thence, leaving said point of beginning and crossing over and through lands having been conveyed to Robert E. Kirk by deed dated May 10, 2011 as recorded in the Office of Recorder of Deeds and for Lancaster County, Pennsylvania as Instrument No. 5932768, being referenced in said deed as Tract No. 5 and hereinafter being referred to as “Grantor” and, in accordance with a survey by Northern Bay Land Planning, Engineering, and Surveying Corporation, with the courses herein based upon the aforesaid Pennsylvania State Plane Coordinate System, South Zone (3702), (NAD 83/2011) the following coursed and distances:

1)  By a line running through and across lands of the Grantor, North 29°27’40” West, a distance 22.39 feet to a point;

2) Thence, continuing through and across lands of the Grantor, North 79°02’18” West, a distance of 233.62 feet to a point on the easterly right-of-way line of Township Road T-531 (Pilottown Road), at 40 feet wide;

3)Thence, by and with the aforesaid easterly right-of-way line of Township Road T-531 (Pilottown Road), at 40 feet wide, North 03°32’08” East, a distance of 50.42 feet to a point:

4)Thence, leaving the aforesaid easterly right-of-way line of Township Road T-531 (Pilottown Road) and running back through and across lands of the Grantor, South 79°02’18” East, a distance of 263.23 feet to a point;

5)Thence, continuing through and across lands of the Grantor, South 29°27’40” East, a distance of 44.60 feet to a point on the aforementioned northwesterly right-of-way line of Township Road T-311 (Black Barren Road), at 33 feet wide;

6)Thence, by and with the aforesaid northwesterly right-of-way line of Township Road T-311 (Black Barren Road), at 33 feet wide, South 52°32’09” West, a distance of 50.01 feet to the place of beginning;

Containing 14,095 square feet or 0.324 acres of land more or less.

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Being a part of the lands which was conveyed unto the Grantor by Deed dated May 10, 2011, and recorded among the land records in the Office of Recorder of Deeds in and for Lancaster County, Pennsylvania as Instrument No. 5932768.

The above described fifty foot wide (50’) Permanent Easement to be conveyed is shown on a Plan entitled “Plan for Easement across Property of Robert E. Kirk dated April 15, 2014, and denoted on said plan as Easement Area A and recorded with the Deed of Easement dated July 11, 2014, and recorded among the land records in the Office of Recorder of Deeds in and for Lancaster County, Pennsylvania as Instrument No. 6173038.

Easement Area B:

Beginning for the same at a point located on the northeasterly right-of-way line of Township Road T-459 (Riverview Road) at positional coordinates N 150,602.35, E 2,406,517.94 as referenced to the Pennsylvania State Plane Coordinate System, South Zone (3702); thence, leaving said point of beginning and crossing over and through lands having been conveyed to Robert E. Kirk by deed dated May 10, 2011 as recorded in the Office of the Recorder of Deeds and for Lancaster County, Pennsylvania as Instrument No. 5932768, being referenced in said deed as Tract No. 5 and hereinafter being referred to as “Grantor” and, in accordance with a survey by Northern Bay Land  Planning, Engineering and Surveying Corporation, with the courses herein based upon the aforesaid Pennsylvania State Plane Coordinate System, South Zone (3702), (NAD 83/2011) the following courses and distances:

1)By a line running through and across lands of the “Grantor”, South 79°02’18” East, a distance of 214.46 feet to a point on the westerly right-of-way line of Township Road T-351 (Pilottown Road), at 40 feet wide;

2)Thence, by and with the aforesaid westerly right-of-way line of Township Road T-351 (Pilotttown Road), at 40 feet wide, South 03°32’08” West, a distance of 50.42 feet to a point:

3)Thence, leaving the aforesaid westerly right-of-way line of Township Road T-351 (Pilottown Road), and running back through and across lands of the “Grantor”, North 79°02’18” West, a distance of 160.10 feet to a point on the aforementioned northeasterly right-of-way line of Township Road T-459 (Riverview Road), at 40 feet wide;

4)Thence, by and with the aforesaid northeasterly right-of-way line of Township Road T-459 (Riverview Road), at 40 feet wide, North 39°38’28” West, a distance of 78.78 feet to the place of beginning.

Containing 9,364 square feet or 0.215 acres of land more or less.

Being a part of the lands which was conveyed unto the “Grantor” herein by Deed dated May 10, 2011, and recorded among the land records in the Office of Recorder of Deeds in and for Lancaster County, Pennsylvania as Instrument No. 5932768.

The above described fifty foot wide (50’) Permanent Easement to be conveyed is shown on a Plan entitled “Plan for Easement across Property of Robert E. Kirk dated April 15, 2014, and denoted on said plan as Easement Area B and recorded with that certain Deed of Easement dated July 11, 2014, and recorded among the land records in the Office of Recorder of Deeds in and for Lancaster County, Pennsylvania as Instrument No. 6173038.

DESCRIPTION OF PERMANENT EASMENT TO BE CONVEYED THROUGH THE LANDS OF SCOTT K. BRINTON AND KATHERINE E. BRINTON

Beginning for the same at a point located on the division line between lands having been conveyed to Scott K. Brinton and Katherine E. Brinton by deed dated December 30, 2004, and recorded among the land records in the Office of Recorder of Deeds in and for Lancaster County, Pennsylvania, as Instrument No. 5388646, and hereinafter being referred to as lands of the “Grantor”, and lands now or formerly of Exelon Generation Co., LLC (formerly known as the Philadelphia Electric Power Company), as also recorded in the aforementioned Office of the Recorder of Deeds, in Deed Book F, Volume 29, Page 376; said point being further located at positional coordinates N 153,640.49, E 2,397,466.69 as referenced to the Pennsylvania State Plane Coordinate System, South Zone (3702) and, North 36°24’29” East, a distance of 51.62 feet from a slate stone found at the southwesterly end of the aforesaid division line being a common corner for lands of the Grantors and lands now of formerly of Exelon Generation Co., LLC;

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Thence, leaving said point of beginning and in accordance with a survey by Northern Bay Land Planning, Engineering, and Surveying Corporation, with the courses herein based upon the Pennsylvania State Plane Coordinate System, South Zone (3702)(NAD 83/2011) the following courses and distances:

1)By and with above mentioned division line between lands of the Grantors and lands now or formerly of Exelon Generation Co., LLC (formerly the Philadelphia Electric Power Company), North 36°24’29” East, a distance of 107.86 feet to a point;

2)Thence, leaving said division line between lands of the Grantors and lands now or formerly of Exelon Generation Co., LLC and running through and across lands of the said Grantors, by a curve to the right, having a radius of 437.20 feet and a chord of North 73°39’24” East, a distance of 55.12 feet, an arc distance of 55.15 feet to a point;

3)Thence, continuing through and across lands of the Grantors, North 77°16’15” East, a distance of 68.26 feet to a point;

4)Thence, continuing through and across lands of the Grantors, by a curve to the right having a radius of 257.38 feet and a chord of North 86°50’10” East – 85.53 feet, an arc distance of 85.93 feet to a point;

5)Thence, continuing through and across lands of the Grantors, South 83°35’59” East, a distance of 41.10 feet to a point;

6)Thence, continuing through and across lands of the Grantors, by a curve to the right having a radius of 235.45 feet and a chord of South 63°40’20” East – 160.70 feet, an arc distance of 164.00 feet to a point;

7)Thence, continuing through and across lands of the Grantors, by a curve to the left having a radius of 90.85 feet and a chord of South 63°32’45” East – 61.63 feet, an arc distance of 62.88 feet to a point;

8)Thence, continuing through and across lands of the Grantors, South 83°22’24” East, a distance of 107.55 feet to a point;

9)Thence, continuing through and across lands of the Grantors, South 46°32’53” East, a distance of 517.16 feet to a point;

10)Thence, continuing through and across lands of the Grantors, South 79°06’20” East, a distance of 480.50 feet to a point;

11)Thence, continuing through and across lands of the Grantors, South 74°22’50” East, a distance of 180.69 feet to a point;

12)Thence, continuing through and across lands of the Grantors, North 48°59’17” East, a distance of 638.52 feet to a point;

13)Thence, continuing through and across lands of the Grantors, North 54°52’51” East, a distance of 1,471.19 feet to a point on the southwesterly right-of-way line of Township Road T-459 (Riverview Road), at 40 feet wide;

14)Thence running by and with the said right-of-way line of Township Road T-459 (Riverview Road), at 40 feet wide, by a curve to the right having a radius of 934.91 feet and a chord of South 61°18’01” East – 55.72 feet, an arc distance of 55.73 feet to a point;

15)Thence, leaving the aforesaid right-of-way line of Township T-459 (Riverview Road) and running back through and across lands of the Grantors, South 54°52’51’ West, a distance of 1,493.20 feet to a point;

16)Thence, continuing back through and across lands of the Grantors, South 48°59’17” West, a distance of 662.88 feet to a point;

17)Thence, continuing back through and across lands of the Grantors, North 74°22’50” West, a distance of 205.57 feet to a point;

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18)Thence, continuing back through and across lands of the Grantors, North 79°06’20” West, a distance of 493.04 feet to a point;

19)Thence, continuing back through and across lands of the Grantors, North 46°32’53” West, a distance of 515.12 feet to a point;

20)Thence, continuing back through and across lands of the Grantors, North 83°22’24” West, a distance of 90.91 feet to a point;

21)Thence, continuing back through and across lands of the Grantors, by a curve to the right having a radius of 140.85 feet and a chord of North 63°32’45” West – 95.55 feet, an arc distance of 97.49 feet to a point;

22)Thence, continuing back through and across lands of the Grantors, by a curve to the left having a radius of 185.45 feet, and a chord of North 63°40’20” West – 126.58 feet, an arc distance of 129.17 feet to a point;

23)Thence, continuing back through and across lands of the Grantors, North 83°35’59” West, a distance of 41.12 feet to a point;

24)Thence, continuing back through and across lands of the Grantors, by a curve to the left having a radius of 207.38 feet and a chord of South 86°50’10” West – 68.91 feet, an arc distance of 69.23 feet to a point;

25)Thence, continuing back through and across lands of the Grantors, South 77°16’15” West, a distance of 68.26 feet to a point;

26)Thence, continuing back through and across lands of the Grantors, by a curve to the left having a radius of 387.20 feet and a chord of South 68°47’56” West – 114.09 feet, an arc distance of 114.50 feet to a point;

27)Thence, continuing back through and across lands of the Grantors, South 60°19’37” West, a distance of 24.81 feet to the place of beginning.

Containing 196,825 square feet or 4.519 acres of land more or less.

Being a part of land which was conveyed unto the Grantors by Deed dated December 30, 2004, and recoded among the Land Records of Lancaster County, Pennsylvania as Instrument No. 5388646.

The above described fifty foot wide (50’) Permanent Easement to be conveyed is shown on a Plan entitled “Plan for Easement across Property of Scott K. Brinton and Katherine E. Brinton” dated July 7, 2014, and recorded with that certain Deed of Easement dated August 11, 2014, and recorded among the land records in the Office of Recorder of Deeds in and for Lancaster County, Pennsylvania as Instrument No. 6173037.

 

Description of lands now or formerly of the Rock Springs Generation, LLC and CED Rock Springs, Inc., situate in the Township of Fulton, County of Lancaster, Commonwealth of Pennsylvania. Said lands being shown on a minor subdivision plan entitled Minor Subdivision for Lands of Old Dominion Electric Cooperative & Essential Power Rock Springs, LLC as prepared by Northern Bay Land Planning Engineering and Surveying Corporation, dated August 26, 2015 as recorded in the Office of the Recorder of Deeds in and for Cecil County, Maryland in Plat Cabinet PC No. 1118, at folio 2  and being further indexed as Minor Subdivision No. 4017, with said lands being more particularly described as follows to wit:

 

Beginning for the same at an iron pin found at the westernmost corner of the herein described parcel, being a common corner of lands now or formerly of Lancaster County Conservancy, as described in a deed found among the Land Records of Lancaster County, Pennsylvania in Deed Record 5349580; thence running with the same, North 63°49’18” East - 783.93 feet to an iron pin found; thence continuing by the same, North 63°49’18” East - 54.27 feet to a point located on the north side of Mason Dixon Road (TR 301); thence running back through and across said Mason Dixon Road (TR 301), South 48°10’42” East - 1,022.34 feet to a capped pin set on the Southerly side of Mason Dixon Road; thence running North 87°36’47” East - 111.39 feet to a PK nail set in the bed of Mason Dixon Road (TR 301); thence running with lands now or formerly of The Manufacturers Light and Heat Co. as described by a deed found in the Land Records of Lancaster County, Pennsylvania in Deed Book M, Volume 52, Page 60, South 02°32’33” West - 

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29.34 feet to a capped pin set; thence continuing by the same, South 02°32’33” West - 79.83 feet to a capped pin set on the division line between the State of Maryland and the Commonwealth of Pennsylvania; thence running by and with said division line and, by Lot No. 2 as shown on the above referenced Minor Subdivision for Lands of Old Dominion Electric Cooperative and Essential Power Rock Springs, LLC, South 89°18’23” West - 1,210.66 feet to a point; thence, running by and with lands now or formerly of  the aforementioned Lancaster County Conservancy (D.R. 5349580); North 43°34’04” West - 10.63 feet to a field stone found; thence continuing with the same, North 43°34’04” West - 584.21 feet to the place of beginning.

Containing 16.751 acres of land, more or less.

 

EXELON EASEMENT

 

BEGINNING for the same at a slate stone found at a common corner for lands having been conveyed to Exelon Generation Company, LLC (formerly, Philadelphia Electric Power Company) by certain deeds dated February 27, 1926 and July 19, 1928 as recorded in the Office of Recorder of Deeds in and for Lancaster County, Pennsylvania in Deed Book X, Volume 27, Page 273.  (Tract No. 1) and Deed Book F, Volume 29, Page 376, respectively, and hereinafter being referred to as lands of the Grantors, and lands now or formerly of Scott K. Brinton and Katherine E. Brinton by deed dated December 30, 2004 as also recorded among the land records in the aforesaid Office of Recorder of Deeds as Instrument No. 5388646; the said slate stone being further located at positional coordinates N 153,598.95 E 2,397,436.05 as referenced to the Pennsylvania State Plane Coordinate System, South Zone (3702):

Thence, leaving said point of beginning and in accordance with a survey by Northern Bay Land Planning, Engineering, and Surveying Corporation, with the courses herein based upon the Pennsylvania State Plane Coordinate System, South Zone (3702) (NAD 83/ 2011) the following courses and distances:

 

1)By and with the division line between lands of the said Grantors and lands now or formerly of the aforementioned Scott K. Brinton and Katherine E. Brinton, by a curve to the right having a radius of 6,993.04 feet and a chord of South 08°34’47” East – 6.80 feet, an arc distance of 6.80 feet to a point;

2)Thence, continuing by and with said division line, by another cure to the right having a radius of 3,623.40 feet and a chord of South 05°01’07” East – 446.62 feet, an arc distance of 446.90 feet to a point;

3)Thence, continuing by and with the aforesaid division line, by another curve to the right having a radius of 1,623.00 feet and a chord of South 03°46’23” West - 297.48 feet, an arc distance of 297.90 feet to a point;

4)Thence, continuing by and with the aforesaid division line, South 09°01’53” West a distance of 28.32 feet to a point;

5)Thence, leaving said division line between lands of the Grantors and the aforesaid lands now or formerly of Scott K. Brinton and Katherine E Brinton and running over, through and across lands of said Grantors, South 86°41’23” West a distance of 293.90 feet to a point on the easterly line of lands now or formerly of The Philadelphia, Baltimore and Washington Railroad Company as conveyed by deed dated April 23, 1946 and recorded in the aforesaid Office of Recorder of Deeds in and for Lancaster County, Pennsylvania in Deed Book U, Volume 37, Page 380;

6)Thence, by and with the aforesaid easterly line of said railroad, being a 60 foot wide strip of land with said easterly line measuring 22.50 feet distant from and parallel to the physical centerline of the existing railroad track, North 07°43’19” East a distance of 18.53 feet to a point;

7)Thence, continuing by and with the aforesaid easterly line of said railroad, by a curve to the left having a radius of 2,322.01 feet and a chord of North 00°28’04” East – 586.41 feet, an arc distance of 587.98 feet to a point;

8)Thence, continuing with the aforesaid easterly line of said railroad, 22.50 feet from and parallel to the centerline of the existing railroad track North 06°47’11” West, a distance of 347.66 feet to a point;

9)Thence, leaving the aforesaid easterly line of said railroad, and crossing back through, over and across lands of the Grantors, North 83°12’08” East a distance of 7.64 feet to a point;

10)Thence, continuing back through, over and across lands of the Grantors, South 06°39’32” East a distance of 187.05 feet to a point;

11)Thence, continuing through, over and across lands of the Grantors, North 65°02’05” East a distance of 27.56 feet to a point;

12)Thence, continuing through, over and across lands of the Grantors, North 45°55’30” East a distance of 349.08 feet to a point;

13)Thence, continuing through, over and across ands of the Grantors, North 58°13’22” East a distance of 112.59 feet to a point;

14)Thence, continuing through, over and across lands of the Grantors, North 74°14’48” East a distance of 133.96 feet to a point on the division line between lands of the Grantors and lands now or formerly of G. Victor Brinton and Nancy H. Brinton as recorded in the Office of Recorder of Deeds in and for Lancaster County, 

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Pennsylvania as Deed Record 5767545;

15)Thence, by the same, South 27°31’11” East a distance of 16.83 feet to a point, a common corner with lands now or formerly of the aforesaid Scott K. Brinton and Katherine E. Brinton as recorded in the aforesaid Office of Recorder of Deeds as Deed Record 5388646;

16)Thence, by and with said lands of Scott K. and Katherine E. Brinton, South 36°24’29” West a distance of 381.29 feet to the place of beginning.

 

Containing 288,651 square feet or 6.627 acres of land more or less.

 

GRAYWOOD REALTY EASEMENT

 

BEGINNING for the same at a point (N 149,126.38 E 2,409,103.35) located at the intersection of the northwesterly right-of-way line of Township Road T-303 (Mason-Dixon Road), at 33 feet wide, with the northeasterly right-of-way line of T-434 (Cornwall Lane), at 33 feet wide;

 

Thence, leaving the said point of beginning and crossing over and through lands having been conveyed to Graywood Realty, LP by deed dated December 29, 2005 and recorded in the Office of Recorder of Deeds in and for Lancaster County, Pennsylvania as Instrument No. 5494166; said lands being referenced in said deed as Tract No. 2, for which the herein described easement is a part, and being hereinafter referred to as lands of the Grantor, and in accordance with a survey by Northern Bay Land Planning, Engineering, and Surveying Corporation, with the courses herein based upon the Pennsylvania State Plane Coordinate (South 3702) System, (NAD 83/2011) the following courses and distances:

 

1)Thence, running by and with the southwesterly outlines of the herein described permanent easement and the aforesaid northeasterly right-of-way line of Township Road T-434 (Cornwall Lane), at 33 feet wide, North 71°09’14” West, a distance of 661.95 feet to a point;

2)Thence continuing by and with the said southwesterly outlines of the herein described easement and the aforesaid northeasterly right-of-way line of Township Road T-434 (Cornwall Lane), at 33 feet wide, North 72°13’45” West, a distance of 316.31 feet to a point of curvature;

3)Thence, continuing by and with the said southwesterly outlines of the herein described easement and the aforesaid northeasterly right-of-way Line of Township Road T-434 (Cornwall Lane), at 33 feet wide, by a curve to the right having a radius of 998.99 feet and a chord of North 65°06’19” West – 247.78 feet, an arc distance of 248.42 feet to a point;

4)Thence, continuing by and with the said southwesterly outlines of the herein described easement and the aforesaid northeasterly right-of-way line of Township Road T-434 (Cornwall Lane), at 33 feet wide, North 57°58’53” West, a distance of 411.62 feet to a point;

5)Thence, continuing by and with the said southwesterly outlines of the herein described easement and the aforesaid northeasterly right-of-way line of Township Road T-434 (Cornwall Lane), at 33 feet wide, North 58°27’07” West, a distance of 294.39 feet to a point;

6)Thence, continuing by and with the said southwesterly outlines of the herein described easement and the aforesaid northeasterly right-of-way line of Township Road T-434 (Cornwall Lane), at 33 feet wide, North 57°02’56” West, a distance of 90.85 feet to a point;

7)Thence, leaving the aforesaid northeasterly right-of-way line of Township Road T-434 (Cornwall Lane), and crossing though lands of the Grantor with the southwesterly outline of the herein described easement, North 29°27’40” West, a distance of 514.82 feet to a point on the southeasterly right-of-way line of Township Road T-311 (Black Barren Road), at 33 feet wide;

8)Thence, by and with the aforesaid southeasterly right-of-way line of Township Road T-311 (Black Barren Road), at 33 feet wide, North 59°32’09” East, a distance of 50.01 feet to a point on the northeasterly outline of the herein described permanent easement;

9)Thence, leaving the aforesaid southeasterly right-of-way line of Township Road T-31 (Black Barren Road), and running by and with the aforesaid northeasterly outline of the herein described permanent easement, through lands of the Grantor, South 29°27’40” East, a distance of 503.42 feet to a point located 50 feet, as measured perpendicularly, from the aforementioned northeasterly right-of-way line of Township Road T-434 (Cornwall Lane), at 33 feet wide;

10)Thence, continuing through lands of the Grantor, by and with the northeasterly outlines of the herein described easement and, running parallel with and 50 feet, as measured perpendicularly, from the aforesaid northeasterly right-of-way line of Township Road T-434 (Cornwall Lane), at 33 feet wide, South 57°02’56” East, a distance of 77.96 feet to a point;

11)Thence, continuing through lands of the Grantor, by and with the northeasterly outlines of the herein 

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described easement and, running parallel with and 50 feet, as measured perpendicularly, from the aforesaid northeasterly right-of-way line of Township Road T-434 (Cornwall Lane), at 33 feet wide, South 58°27’07” East, a distance of 293.98 feet to a point;

12)Thence, continuing through lands of the Grantor, by and with the northeasterly outlines of the herein described easement and, running parallel with and 50 feet, as measured perpendicularly, from the aforesaid northeasterly right-of-way line of Township Road T-434 (Cornwall Lane), at 33 feet wide, South 57°58’53” East, a distance of 411.82 feet to a point of curvature;

13)Thence, continuing through lands of the Grantor, by and with the northeasterly outlines of the herein described easement and, running parallel with and 50 feet, as measured perpendicularly, from the aforesaid northeasterly right-of-way line of Township Road T-434 (Cornwall Lane), at 33 feet wide, by a curve to the left having a radius of 948.99 feet and a chord of South 65°06’19” East – 235.38 feet, an arc distance of 235.99 feet to a point of tangency;

14)Thence, continuing through lands of the Grantor, by and with the northeasterly outlines of the herein described easement and, running parallel with and 50 feet, as measured perpendicularly, from the aforesaid northeasterly right-of-way line of Township Road T-434 (Cornwall Lane), at 33 feet wide, South 72°13’45” East, a distance of 316.77 feet to a point;

15)Thence, continuing through lands of the Grantor, by and with the northeasterly outlines of the herein described easement and, running parallel with and 50 feet, as measured perpendicularly, from the aforesaid northeasterly right-of-way line of Township Road T-434 (Cornwall Lane), at 33 feet wide, South 71°09’34” East, a distance of 689.62 feet to a point on the aforementioned northwesterly right-of-way line of Township Road T-303 (Mason-Dixon Road), at 33 feet wide;

16)Thence, by and with the aforesaid northwesterly right-of-way line of Township Road T-434 (Mason-Dixon Road), at 33 feet wide, South 47°23’37” West, a distance of 56.92 feet to the place of beginning.

 

Containing 126,698 sq. ft. or 2.909 acres of land more or less.

 

GRAYBEAL EASEMENT

 

BEGINNING for the same at a point located on the northeasterly right-of-way line for Township Road T-303 (Mason-Dixon Road), at 33 feet wide, where said right-of-way line is intersected by the northeasterly outline of the herein described 50 feet wide permanent easement; said point being further located at positional coordinates N 147,876.09 E 2,412,944.86 as referenced to the Pennsylvania State Plane Coordinate System, South Zone (3702);

Thence, leaving said point of beginning and crossing over and through lands having been conveyed to R. Steven Graybeal and Joseph B. Graybeal, by deed dated July 13, 1976 and recorded among the land records in the Office of Recorder of Deeds in and for Lancaster County, Pennsylvania in Deed Book O, Volume 68, Page 467, being referenced in said deed as Tract No. 1 and hereinafter being referred to as lands of the Grantors and, in accordance with a survey by Northern Bay Land Planning, Engineering, and Surveying Corporation, with the courses herein based upon the aforesaid Pennsylvania State Plane Coordinate System, South Zone (3702), (NAD 83/ 2011) the following courses and distances;

 

1)By and with the aforesaid northeasterly right-of-way line of Township Road T-303 (Mason-Dixon Road), at 33 feet wide, North 67°08’08” West, a distance of 1.25 feet to a point;

2)Thence, continuing by and with the aforesaid northeasterly right-of-way line of Township Road T-303 (Mason-Dixon Road), at 33 feet wide, North 67°50’51” West, a distance of 263.94 feet to a point;

3)Thence, continuing by and with the aforesaid northeasterly right-of-way line of Township Road T-303 (Mason-Dixon Road), at 33 feet wide, by a curve to the right having a radius of 1,028.49 feet and a chord of North 59°33’43” West – 296.42 feet, an arc distance of 297.46 feet to a point;

4)Thence, continuing by and with the aforesaid northeasterly right-of-way line of Township Road T-303 (Mason-Dixon Road), at 33 feet wide, North 51°16’35” West, a distance of 80.74 feet to a point;

5)Thence, continuing by and with the aforesaid northeasterly right-of-way line of Township Road T-303 (Mason-Dixon Road), at 33 feet wide, North 49°08’37” West, a distance of 147.53 feet to a point;

6)Thence, continuing by and with the aforesaid northeasterly right-of-way line of Township Road T-303 (Mason-Dixon Road), at 33 feet wide, by a curve to the left having a radius of 391.50 feet and a chord of North 64°54’08” West – 212.65 feet, an arc distance of 215.35 feet to a point;

7)Thence, continuing by and with the aforesaid northeasterly right-of-way line of Township Road T-303 (Mason-Dixon Road), at 33 feet wide, North 80°39’38” West, a distance of 101.55 feet to a point;

8)Thence, continuing by and with the aforesaid northeasterly right-of-way line of Township Road T-303 (Mason-Dixon Road), at 33 feet wide, North 82°01’05” West, a distance of 60.25 feet to a point;

9)Thence, by a curve to the left having a radius of 11,656.57 feet and a chord of North 82°54’13” West – 

B-24

 

360.29 feet, an arc distance of 360.30 feet to a point;

10)Thence, continuing by and with the aforesaid northeasterly right-of-way line of Township Road T-303 (Mason-Dixon Road), at 33 feet wide, North 83°47’20” West, a distance of 278.00 feet to a point;

11)Thence, continuing by and with the aforesaid northeasterly right-of-way line of Township Road T-303 (Mason-Dixon Road), at 33 feet wide, North 83°22’07” West, a distance of 190.45 feet, to a point;

12)Thence, continuing by and with the aforesaid northeasterly right-of-way line of Township Road T-303 (Mason-Dixon Road), at 33 feet wide, by a curve to the right having a radius of 4.650.23 feet and a chord of North 81°47’04” West – 257.09 feet, an arc distance of 257.13 feet to a point;

13)Thence, continuing by and with the aforesaid northeasterly right-of-way line of Township Road T-303 (Mason-Dixon Road), at 33 feet wide, by another curve to the right having a radius of 404.13 feet and a chord of North 63°52’48” West – 227.13 feet, an arc distance of 230.23 feet to a point on the northeasterly side of the herein described permanent easement;

14)Thence, leaving the aforesaid northeasterly right-of-way line of Township Road T-303 (Mason-Dixon Road), and running back through and across lands of the Grantors herein, with the said northeasterly side of the herein described permanent easement, South 83°57’44” East, a distance of 99.81 feet to a point located 50 feet, as measured perpendicularly, from the aforesaid northeasterly right-of-way line of Township Road T-303 (Mason-Dixon Road);

15)Thence, continuing back through and across lands of the Grantors, with the northeasterly side of the herein described permanent easement, 50 feet from and parallel with the aforesaid northeasterly right-of-way line of Township Road T-303 (Mason-Dixon Road), as previously described, by a curve to the left having a radius of 354.13 feet and a chord of South 70°26’09” East – 120.12 feet, an arc distance of 120.71 feet to a point;

16)Thence, continuing back through and across lands of the Grantors, with the northeasterly side of the herein described permanent easement, 50 feet from and parallel with the aforesaid northeasterly right-of-way line of Township Road T-303 (Mason-Dixon Road), as previously described, by another curve to the left having a radius of 4,600.23 feet and a chord of South 81°47’04” East – 254.33 feet, an arc distance of 254.36 feet to a point;

17)Thence, continuing back through and across lands of the Grantors, with the northeasterly side of the herein described permanent easement, 50 feet from and parallel with the aforesaid northeasterly right-of-way line of Township Road T-303 (Mason-Dixon Road), as previously described, South 83°22’07” East, a distance of 190.26 feet to a point;

18)Thence, continuing back through and across lands of the Grantors, with the northeasterly side of the herein described permanent easement, 50 feet from and parallel with the aforesaid northeasterly right-of-way line of Township Road T-303 (Mason-Dixon Road), as previously described, South 83°47’20” East, a distance of 277.82 feet to a point;

19)Thence, continuing back through and across lands of the Grantors, with the northeasterly side of the herein described permanent easement, 50 feet from and parallel with the aforesaid northeasterly right-of-way line of Township Road T-303 (Mason-Dixon Road), as previously described, by a curve to the right having a radius of 11,706.57 feet and a chord of South 82°54’13” East – 361.83 feet, an arc distance of 361.85 feet to a point;

20)Thence, continuing back through and across lands of the Grantors, with the northeasterly side of the herein described permanent easement, 50 feet from and parallel with the aforesaid northeasterly right-of-way line of Township Road T-303 (Mason-Dixon Road), as previously described, South 82°01’05” East, a distance of 60.84 feet to a point;

21)Thence, continuing back through and across hinds of the Grantors, with the northeasterly side of the herein described permanent easement, 50 feet from and parallel with the aforesaid northeasterly right-of-way line of Township Road T-303 (Mason-Dixon Road), as previously described, South 80°39’38” East, a distance of 102.14 feet to a point;

22)Thence, continuing back through and across lands of the Grantors, with the northeasterly side of the herein described permanent easement, 50 feet from and parallel with the aforesaid northeasterly right-of-way Township Road T-303 (Mason-Dixon Road), as previously described, by a curve to the right having a radius of 441.50 feet and a chord of South 64°54’08” East – 239.81 feet, an arc distance of 242.86 feet to a point;

23)Thence, continuing back through and across lands of the Grantors, with the northeasterly side of the herein described permanent easement, 50 feet from and parallel with the aforesaid northeasterly right-of-way line of Township Road T-303 (Mason-Dixon Road), as previously described, South 49°08’37” East, a distance of 146.60 feet to a point;

24)Thence, continuing back through and across lands of the Grantors, with the northeasterly side of the herein described permanent easement, 50 feet from and parallel with the aforesaid northeasterly right-of-way line of Township Road T-303 (Mason-Dixon Road), as previously described South 51°16’35” East, a distance of 79.81 feet to a point;

25)Thence, continuing back through and across lands of the Grantors, with the northeasterly side of the herein described permanent easement, 50 feet from and parallel with the aforesaid northeasterly right-of-way line of 

B-25

 

Township Road T-303 (Mason-Dixon Road), as previously described, by a curve to the left having a radius of 97.49 feet and a chord of South 59°04’11” East – 265.37 feet, an arc distance of 266.19 feet to a point;

26)Thence, continuing back through and across lands of the Grantors, with the northeasterly side of the herein described permanent easement, South 57°45’42” East, a distance of 286.43 feet to the place of beginning.

 

Containing 114,850 sq. ft. or 2.637 acres of land more or less.

 

GRAYBEAL EASEMENT

 

BEGINNING for the same at a point located on the southwesterly right-of-way line for Township Road T-303 (Mason-Dixon Road), at 33 feet wide, where said right-of-way line is intersected by the southerly side of the herein described 50 feet wide permanent easement; said point being further located at positional coordinates N 148,570.28 E 2,410.645.53 as referenced to the Pennsylvania State Plane Coordinate System, South Zone (3702);

 

Thence, leaving said point of beginning and crossing over and through lands having been conveyed to R. Steven Graybeal and Joseph B. Graybeal, by deed dated July 13, 1976 and recorded among the land records in the Office of Recorder of Deeds in and for Lancaster County, Pennsylvania in Deed Book O, Volume 68, Page 467, being referenced in said deed as tract No. 1 and hereinafter being referred to as lands of the Grantors and, in accordance with a survey by Northern Bay Land Planning, Engineering, and Surveying Corporation, with the courses herein based upon the aforesaid Pennsylvania State Plane Coordinate System, South Zone (3702), (NAD 83/ 2011) the following courses and distances:

 

1)By and with the aforesaid southerly side of the herein described permanent easement, North 83°57’44” West, a distance of 157.76 feet to a point on the division line between lands of the Grantors herein and lands now or formerly of Graywood Realty, LP by deed dated December 29, 2005 and recorded in the aforesaid Office of Recorder of Deeds in and for Lancaster County, Pennsylvania as Instrument No. 5494166 (Tract No. I);

2)Thence, by and with said division line between lands of the Grantors and lands now or formerly of Graywood Realty, LP, North 10°14’09” East, a distance 27.42 feet to a point;

3)Thence, continuing by and with the aforesaid division line between lands of the Grantors and lands now or formerly of Graywood Realty, LP, North 20° 24’14” East, 23.39 feet to a point on the northerly side of the herein described permanent easement;

4)Thence, leaving the aforesaid division line and crossing back through and across lands of the Grantors, by and with aforesaid northerly side of the herein described permanent easement, parallel with and 50 feet, as measured perpendicularly, from the above described southerly side of the herein described permanent easement, South 83°57’44” East, a distance of 82.09 feet to a point on the aforementioned southwesterly right-of-way line of Township Road T-303 (Mason-Dixon Road), at 33 feet wide;

5)Thence, by and with the said southwesterly right-of-way line of Township Road T-303 (Mason-Dixon Road), at 33 feet wide, by a curve to the left having a radius of 437.13 feet and a chord of South 47°34’37” East – 84.29 feet, an arc distance of 84.42 feet to the place of beginning.

 

Containing 5,938 sq. ft. or 0.136 acres of land more or less.

 

GRAYWOOD FARMS EASEMENT

 

BEGINNING for the same at a point on the southwesterly right-of-way line of Township Road T-459 (Riverview Road), at 40 feet wide, at positional coordinates N 150,553.67 E 2,406,506.33, as referenced to the Pennsylvania State Plan coordinate System, South Zone (3702), where said right-of-way line is intersected by the southerly outline of the herein described permanent easement; thence, leaving the said point of beginning and crossing over and through lands having been conveyed to Graywood Farms, LLC, by deed dated June 23, 2003 as recorded in the Office of Recorder of Deeds in and for Lancaster County, Pennsylvania as Instrument No. 5203062, being referenced in said deed as Tract No. 2, and hereinafter being referred to as Grantor and in accordance with a survey by Northern Bay Land Planning, Engineering, and Surveying Corporation, with the courses herein based upon the Pennsylvania State Plane Coordinate System, South Zone (3702), (NAD 83/2011) the following courses and distances:

 

1)By a line running through lands of the Grantors and along the southerly outline of the herein described easement, North 79°02’18” West, a distance of 78.78 feet to point;

2)Thence, continuing through lands of the Grantors by and with the southwesterly outlines of the herein described permanent easement, 50 feet from and parallel to the aforesaid southwesterly right-of-way line of Township Road T-459 (Riverview Road), at 40 feet wide, North 39°38’28” West, a distance of 687.57 feet to a 

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point;

3)Thence, continuing through lands of the Grantors, by and with the aforesaid southwesterly outlines of the herein described permanent easement, 50 feet from and parallel to the aforesaid southwesterly right-of-way line of Township Road T-459 (Riverview Road), at 40 feet wide, by a curve to the left having a radius of 2,794.80 feet and a chord of North 45°09’28” West – 537.36 feet, an arc distance of 538.19 feet to a point;

4)Thence, continuing through lands of the Grantors by and with the aforesaid southwesterly outlines of the herein described permanent easement, 50 feet from and parallel to the aforesaid southwesterly right-of-way line of Township Road T-459 (Riverview Road), at 40 feet wide, North 50°40’28” West, a distance of 29.70 feet to a point on the division line between lands of the Grantor and lands now or formerly of PECO Energy Company (formerly Philadelphia Electric Company) as recorded in the Office of Recorder of Deeds in and for Lancaster County, Pennsylvania, in Deed Book H, Volume 59, Page 1158;

5)Thence, running by and with said division line between lands of the Grantor and lands now or formerly of PECO Energy Company, North 27°19’38” West, a distance of 126.17 feet to a point on the aforesaid southwesterly right-of-way line of Township Road T-459 (Riverview Road), at 40 feet wide, being also the northeasterly outline of the herein described permanent easement;

6)Thence, by and with the said northeasterly outlines of the herein described easement and the aforesaid southwesterly right-of-way line of Township Road T-459 (Riverview Road), at 40 feet wide, South 50°40’28” East, a distance of 145.54 feet to a point;

7)Thence, continuing by and with the aforesaid northeasterly outlines of the herein described easement and the aforesaid southwesterly right-of-way line of Township Road T-459 (Riverview Road), at 40 feet wide, by a curve to the right, having a radius of 2,844.80 feet and a chord of South 45°09’28” East – 546.97 feet, an arc distance of 547.82 feet to a point;

8)Thence, continuing by and with the aforesaid northeasterly outlines of the herein described easement and the aforesaid southwesterly right-of-way line of Township Road T-459 (Riverview Road), at 40 feet wide, South 39°38’28” East, a distance of 748.45 to the place of beginning;

 

Containing 67,432 sq. ft. or 1.548 acres of land more or less.

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SURRY COUNTY

 

PARCEL 1:  

 

ALL of that certain lot or parcel of land and the improvements thereon, situate in the Town of Dendron, Virginia, containing ten (10) acres, more or less, and bounded as follows:  

 

BEGINNING at a point on the southerly side of the right of way of Surry-Sussex and Southampton Railway twenty (20) foot eastward from the line of the Paulson Tract, thence in a southerly direction in a direct line parallel to the line of the Paulson Tract, thence in a southerly direction in a direct line parallel to the line of the Paulson Tract thirteen hundred (1300) feet, more or less, to a point on the prolongation of the line forming the south boundary of the tract sold to Spratley and William Burt, three hundred forty-five (345) feet; thence in a northerly direction by a direct line parallel to the westerly line of the tract herein conveyed twelve hundred sixty-five (1265) feet, more or less, to the southerly side of the right of way of the Surry-Sussex and Southampton Railroad; thence in a westerly direction along the line of said right of way to place of beginning.  

 

LESS AND EXCEPT all that certain lot or parcel of land containing 0.161 acre conveyed to The Board of Supervisors of the County of Surry, in Deed Book 196, page 678.  

 

AND FURTHER depicted on that survey entitled "Plat of Survey for Dennis P. Mason and Mae Mason Deed Book 226, page 107, Town of Dendron, Surry County, Virginia" dated May 25, 2010, recorded in Plat Book 7, page 297, described as follows:  

 

COMMENCING at an Iron Rod found with Cap found on the west Corporate Limits  of the Town of Dendron, Virginia, at the corner of this tract, Lot No. 6 of Mussel Forks Farm Subdivision and the southern right of way of Railroad Avenue, Virginia State Plane South Zone coordinates N 3540906.44', E 11936059.12', said point being the Point of Beginning; thence with the right of way of Railroad Avenue N 60° 07' 14"E, a distance of 20.00' to an Iron Rod Set at the corner of this tract and the property of The Board of Supervisors of the County of Surry; thence with the property of The Board of Supervisors of the County of Surry S 29° 52' 46" E, a distance of 70.00' to an Iron Rod set at the corner of this tract and the property of The Board of Supervisors of the County of Surry; thence with the property of The Board of Supervisors of the County of Surry; thence N 60° 07'14" W, a distance of 100.00' to an Iron Rod set at the corner of this tract and the property of The Board of Supervisors of the County of Surry and the southern right of way of Railroad Avenue; thence along the right of way of Railroad Avenue N 60° 07' 14" E, a distance of 244.88' to an Iron Rod found at the corner of this tract, the right of way of Railroad Avenue and the property of Old Dominion Electric Cooperative (ODEC); thence with the property of ODEC S 30° 11' 17" E, a distance of 1272.11' to an Iron Rod found at the corner of this tract and ODEC; thence S 58° 08' 30" a distance of 345' to an Iron Rod found at the corner of this tract and ODEC; thence N. 30° 11' 17" W, a distance of 840.07' to an Iron Pipe found at the corner of this tract, ODEC, and Lot No. 6; thence with the property of Lot 6 N 32° 46' 00" W, a distance of 444.24' to there Point of Beginning; said described tract containing 10.06 Acres, more or less.  Property is subject to a 20' Sanitary Sewer Easement on the northwest.  

 

BEING the same real estate conveyed to Old Dominion Electric Cooperative, a Virginia utility aggregation cooperative, by deed from Dennis P. Mason and Mae Mason, recorded June 11, 2010, in the Clerk's Office, Circuit Court, Surry County, Virginia, in Deed Book 240, page 233.

 

 

PARCEL 2:  

 

TRACT A:

 

ALL that certain lot or parcel of land in Cobham Magisterial District, Surry County, Virginia, described as follows:

 

BEGINNING at a point in the rear line of Lot Number 4, corner with Lot Number 5, on a certain plat of 'PLEASANT POINT FARM", made by F.D.P. Bruner, entitled "Plat Showing Property Owned by Willis W. Bohannan, Cobham District, Surry County, Virginia", a copy of which said plat is recorded in the Clerk's Office of the Circuit Court of said County in Plat Book 5, page 35; thence S. 43°, 35' West 270 feet to an iron pin; thence S. 54° E. 4361⁄2 feet to an iron pin on Route 636 to a point in the property of R. W. Berryman; thence continuing in the same direction to the rear line of Lot Number 1; thence N. 54° W. along the rear lines of Lots 1, 2, 3, and 4 to the point of beginning.  

 

B-28

 

TRACT A BEING the same real estate conveyed to Old Dominion Electric Cooperative, by deed dated April 29, 2010, recorded May 7, 2010, in the Clerk's Office, Circuit Court, Surry County, Virginia, in Deed Book 239, page 573.

 

TRACT B:

 

ALL that certain lot or parcel of land in Cobham Magisterial District, Surry County, Virginia, known, numbered and designated on a certain plat of "Pleasant Point Farm", made by F.D.P. Bruner, dated May 18, 1940, and recorded in the Clerk's Office of the Circuit Court of said County in Plat Book 4, page 161, as Lots Numbers 1, 2, 3, and 4, in Block A.  

 

AND FURTHER depicted on that survey entitled "Plat of Survey for James E. Traylor and Sophia Z. Traylor five parcels at Cobham Wharf Deed Book 220, Page 270 Cobham District, Surry County, Virginia" dated April 23, 2010, recorded in Plat Book 7, page 281, described as follows:

 

COMMENCING at an Iron Rod set at the intersection of this property, the property of Marshall R. Webb, et ux and State Route 636 (Cobham Bluff Road), a corner on this property, Virginia state Plane South Zone Coordinates N 3589795.48', E 11987649.38', said point being the POINT OF BEGINNING, thence with the line of Webb N 60° 39' 49" W, a distance of 196.61' to an Iron Rod set, continuing along the same bearing 212.16' to a Bent Iron Pipe found, continuing on the same bearing 23.90' to an Iron Pipe found, a corner on this property and other lands of Marshall R. Webb, et ux, thence along the line of Webb N 36° 55' 11" E, a distance of 270.00' to an Iron Rod set at the corner of this property, the property of Webb, and the property of Daisey Bell Frazier; thence along the line of Frazier N 36° 55' 11" E, a distance of 304.66' to an Iron Rod set at the corner of this property, Frazier and the low water line of the James River; thence along the low water line of the James River S 65° 42' 09" E, a distance of 50.79' to an Iron Rod set; continuing along the same bearing a distance of 50.79' to an Iron Rod set; continuing along the same bearing a distance of 50.79' to an Iron Rod set, continuing along the same bearing a distance of 15.88' to an Iron Rod set at the corner of this property, the James River and the property of Cobham Bluff, L. L.C., thence leaving the low water line of the James River and along the line of Cobham Bluff L. L. C. S 17° 01' 15" W a distance of 126.34' to an Iron Rod found; thence S 13° 59' 56" E, a distance of 68.84' to an Iron Rod set at the corner of this property, Cobham Bluff L. L. C. and State Route 636; thence along the western edge of State Route 636 S 15° 47' 59" W, a distance of 57.11' to an Iron Rod set at the point of curvature of a tangent curve, concave to the east, having a radius of 290.29' a central angle of 07° 47' 52", and a chord of 39.48' bearing S 11° 52' 56" W; thence South along said curve, a distance of 39.51' to an Iron Rod set; thence S 07° 57' 51" W, a distance of 53.78' to an Iron Rod set, continuing along the dame bearing a distance of 38.34' to an Iron Rod set at the point of curvature of a tangent curve, concave to the West, having a radius of 529.82' and a central angle of 09° 28' 52"; thence South along said curve, a distance of 87.67', curving to the right to an Iron Rod set; thence S 17° 26' 18" W, a distance of 151.28' to the Iron Rod set, the POINT OF BEGINNING, a corner of this property; said described tract containing 4.10 Acres, more or less.

 

Tract B BEING the same real estate conveyed to Old Dominion Electric Cooperative, by deed dated April 30, 2010, recorded May 7, 2010, in the Clerk's Office, Circuit Court, Surry County, Virginia, in Deed Book 239, page 576.

 

PARCEL 3:  

 

ALL that certain tract, piece or parcel of land, with improvements thereon and appurtenances thereto belonging, lying and being situate in the County of Surry, Virginia, with a portion also being situate within the Town of Dendron, County of Surry, shown as Parcel I on a plat of survey made by Charles R. Sheckler, C.L.S., dated May 3, 2010, recorded in Plat Book 7, page 289, and to which reference is hereby made for a more particular description of the property described as follows:

 

Commencing at a Concrete Monument Set, VIRGINIA STATE PLANE SOUTH ZONE COORDINATES (N 3537972.55', E 11935090.25), a corner of this parcel, where the property of Mussel Fork Farm, L. L. C and George M. Cooke, Jr. intersect the northern edge of the Dominion Virginia Power 150' Right of Way., said point being the POINT OF BEGINNING; thence along Cooke's line N 54°49'09" E, a distance of 164.42' to an Iron Rod Set; thence N 59°13'28" E, a distance of 139.92' to an 18" Marked Gum; thence N 70°43'28" E, a distance of 126.06' to an Iron Rod Set; thence N 67°46'32" W, a distance of 170.94' to an Iron Rod Set; thence S 83°19'47" W, a distance of 284.66' to a 30" Marked Gum, a corner of this parcel, George M. Cooke and Robert Stith Estate; thence with the line of Robert Stith Estate N 23°32'19" W, a distance of 522.28' to an Iron Rod Set; thence  N 16°37'10" W, a distance of 155.00' to an Iron Rod Set at the corner of this parcel, Robert Stith Estate and Vinnie Brown; thence with the line of Vinnie Brown N 01°07'50" E, a distance of 165.00' to an Iron Rod Set; thence N 03°37'50" E, a distance of 270.00' to an Iron 

B-29

 

Rod Set; thence N 10°52'50" E, a distance of 358.00' to an Iron Pipe Found; thence N 51°30'33" E, a distance of 273.39' to a 30" Marked Pine, a corner of this parcel, Vinnie Brown and Lot No. 5; thence with the line of Lot No. 5 N 58°44'08" E, a distance of 779.89' to a 30" Marked Gum; thence N 59°29'25" E, a distance of 77.49' to an Iron Rod Set, a corner of this parcel; thence N 37°42'39" W, a distance of 1063.75' to an Iron Rod Set, a corner of this parcel, Lot No. 5 and Rolfe Highway, State Route 31 (SOUTH ENTRANCE); thence along the southern right of way of Rolfe Highway N 52°17'21" E, a distance of 100.00' to an Iron Rod Set, a corner of this parcel, Rolfe Highway and Lot No. 6; thence with the line of Lot No. 6 S 37°42'39" E, a distance of 1076.39' to an Iron Rod Set, a corner of this parcel; thence  N 59°29'25" E, a distance of 244.01' to an Iron Rod Set; thence N 59°04'22" E, a distance of 229.91' to an Iron Pipe Found, a corner of this parcel, Lot No. 6 and Dennis Mason; thence with the  line of Mason S 30°11'17" E, a distance of 840.07' to an Iron Rod Set, a corner of this parcel; thence N 58°08'30" E, a distance of 345.00' to an Iron Rod Set, a corner of this parcel; thence  N 30°11'17" W, a distance of 1272.11' to an Iron Rod Set, a corner of this parcel, Dennis Mason and the southern edge of Railroad Avenue; thence with the southern edge of Railroad Avenue N 57°53'04" E, a distance of 1050.37' to an Iron Pipe Found, a corner of this parcel, Railroad Avenue and Webster Brown; thence with the line of Brown, S 32°57'13" E, a distance of 1276.52' to an Iron Rod Set, a corner of this parcel; thence with the line of Brown N 58°08'30" E, a distance  of 363.00' to a 10" Oak, corner of this parcel, the property of Brown and the property of  James Edwards; thence continuing on the same bearing along the line of Edwards, a distance of 388.08' to an Iron Pipe Found; thence N 65°23'22" E, a distance of 268.57' to an Iron Rod Set, a corner of this parcel; thence N 15°40'12" W, a distance of 400.00' to an Iron Rod Set; thence N 05°25'37" W, a distance of 1094.02' to an Iron Rod Set, a corner of this parcel, James Edwards the southern edge of Railroad Avenue; thence with the southern edge of Railroad Avenue N 56°45'01" E, a distance of 288.49' to an Iron Rod Set, a corner of this parcel, the southern edge of Railroad Avenue and W. D. Goodrich, Jr.; thence with the line of Goodrich S 14°23'29" E, a distance of 128.90’ to an Iron Rod Set, a corner of this parcel; thence with the line of Goodrich N 75°32'23" E, a distance of 116.10' to a computed point, a corner of this parcel the property of Goodrich and the property of Grace Homes, Inc, continuing with the same bearing and the line of Grace Homes, Inc, a distance of  55.00' to a computed point,  a corner of this parcel, the property of Grace Homes, Inc. and the property of W. D. Goodrich, Jr.; thence with the line of Goodrich, a distance of 129.46’  to an Iron Rod Found, a corner of this parcel, W. D. Goodrich, Jr. and Lot No. 1; thence along the line of Lot No. 1 S 14°20'06" E, a distance of 132.26’ to an Iron Rod Found, a corner of this parcel; Lot No. 1 and the property of Richard Rogerson; thence on the same bearing and with the line of Rogerson, a distance of 124.83’ to an Iron Pipe Found, a corner of this parcel; thence with the line of Rogerson N 75°37'37" E a distance of 400.31' to an Iron Pipe Found, a corner of this parcel, the property of Rogerson and Park Avenue at the end of public maintenance; thence on the same bearing across the end of Park Avenue 40.08' to an computed point, a corner of this parcel, Park Avenue and the property of Angelica Bailey; thence on the same bearing and with the line of  Angelica Bailey a distance of 400.31' to an Iron Pipe Found, thence N 11o44’04”W, a distance of 25.01’to an Iron Pin Set; thence N 21o34’24” W, a distance of 269.25’ to an Iron Pin Found; a corner to this parcel; the property of Angelica Bailey and the property of Vico; thence N 74o51’34” E, a distance of 439.00’ to an Iron Pin Set; thence N 54o56’18”E, a distance of 190.00’; thence N 17o02’25” W, a distance of 380.50’ to an Iron Pin Set; a corner to this parcel, Vico and Lot No. 2; thence with the line of Lot No. 2 N 70°20'46" E, a distance of 608.79' to an Iron Rod Set; thence Due North a distance of 308.76' to an Iron Rod Set; thence N 55°26'15" E, a distance of 213.72' to an Iron Rod Set; thence N 61°31'48" E, a distance of 198.84' to an Iron Rod Set; thence N 25°46'47" E, a distance of 142.99' to an Iron Rod Set; thence N 41°20'03" W, a distance of 271.71' to an Iron Rod Set on the southern edge of Rolfe Highway, State Route 31, a corner of this parcel; thence along the southern edge of the right of way of Rolfe Highway N 44°48'36", a distance of 406.62' to the point of curvature of a tangent curve, concave to the northwest, having a radius of 16379.62' and a central angle of 00°42'02", and a chord of 200.30’ bearing N 44o27’35”E; thence Northeast along said curve, a distance of 200.30', curving to the left; thence N 44°06'16" E, a distance of 264.27' to an Iron Rod Set, a corner of this parcel, Rolfe Highway and Lot No. 3; thence with the line of Lot No. 3  S 44°55'08" E, a distance of 500.00' to an Iron Rod Set, a corner of this parcel; thence  N 46°13'14" E, a distance of 702.75' to an Iron Rod Found (Dendron Corporate Limit) , a corner of this parcel; thence N 36°59'27" E, a distance of 1015.46' to an Iron Rod Set, a corner of this parcel and Lot No. 3; at the point of curvature of a non-tangent curve, concave to the northeast, having a radius of 231.07' a central angle of 45°00'00", and a chord of 176.85' bearing S 29°10'24" E; thence Northwest along said curve, a distance of 181.48' to an Iron Rod Set; thence N 06°40'23" W, a distance of 132.84' to an Iron Rod Set at the point of curvature of a tangent curve, concave to the southwest, having a radius of 131.07' and a central angle of 45o00’00”, a chord of 100.31’ bearing S 29o10’23 E; thence North along said curve, a distance of 102.94', curving to the left to an Iron Rod Set; thence N 51°40'23" W, a distance of 125.00' to an Iron Rod Set, a corner of this parcel, Lot No. 3 and the southern edge of Rolfe Highway, State Route 31 (NORTH ENTRANCE); thence along the southern right of way of Rolfe Highway along a curve, concave to the southeast, having a radius of 11349.38' a central angle of 00°30'17", and a chord of 100.00' bearing N 38°19'37" E; thence Northeast along said curve a distance of 100.00' to an Iron Rod Set, a corner of this parcel, Rolfe Highway and Lot No. 4; thence with the line of Lot No. 4 S 51°40'23" E, a distance of 125.00' to an Iron Rod Set at the point of curvature of a tangent curve, concave to the southwest, having a radius of 231.07' and a central angle of 45°00'00"; a chord of 176.85’ bearing S 29o10’23” E; thence Southeast 

B-30

 

along said curve, a distance of 181.48', curving to the right to an Iron Rod Set; thence S 06°40'23" E, a distance of 132.84' to an Iron Rod Set at the point of curvature of a tangent curve, concave to the northeast, having a radius of 131.07' and a central angle of 44o59’58”, and a chord of 100.31’ bearing S29o10’23” E; thence South along said curve, a distance of 102.94', curving to the left to an Iron Rod Set, a corner of this parcel; thence N 40°38'38" E, a distance of 1475.79' to a point in the center of Cypress Swamp, a corner of this parcel and the property of James Britt et ux; thence downstream with the center of Cypress Swamp and the line of Britt the following courses and distances (Due to natural variations in the location of Cypress Swamp, all distance references to adjacent’s corners are approximate): S 65°05'22" E, a distance of 285.45'; thence S 28°21'54" E, a distance of 225.56'; thence S 35°25'22" E, a distance of 206.17'; thence S 59°23'53" E, a distance of 345.88'; thence S 50°47'25" E, a distance of 300.75' to a corner of this property, the property of Britt, and the property of David L. Day; thence continuing downstream with the line of Day S 36°59'53" E, a distance of 324.84'; thence S 47°16'30" E, a distance of 327.46'; thence S 65°56'23" E, a distance of 329.25'; thence S 50°47'25" E, a distance of 225.56' to a corner of this property, the property of Day and the property of James Dean Britt et ux; thence continuing downstream with the line of Britt S 06°07'18" E, a distance of 212.16'; thence S 20°27'29" W, a distance of 236.26'; thence S 62°37'18" W, a distance of 209.41'; thence S 50°25'21" W, a distance of 233.92'; thence S 55°39'46" W, a distance of 161.50'; thence S 19°44'03" W, a distance of 289.02'; thence S 26°16'14" W, a distance of 144.20'; thence S 03°47'30" E, a distance of 200.02'; thence S 46°38'25" E, a distance of 237.81'; thence S 58°35'58" E, a distance of 358.85'; thence S 56°47'15" E, a distance of 247.07'; thence S 57°51'38" E, a distance of 326.23'; thence S 32°30'54" E, a distance of 237.81' to  a corner of this property, the property of Britt and the property of Margaret Hamilton; thence continuing downstream with the property of Hamilton S 26°41'38" E, a distance of 196.71'; thence S 06°07'18" E, a distance of 265.20'; thence S 41°35'58" W, a distance of 192.34'; thence S 42°13'15" W, a distance of 103.40'; thence S 07°20'10" E, a distance of 191.83'; thence S 00°46'22" W, a distance of 135.48'; thence S 33°17'35" E, a distance of 133.56' to a corner to this property, the property of Hamilton and the property of Horace King, Trustee; thence continuing downstream with the line of King S 48°14'52" E, a distance of 193.97'; thence S 51°34'07" E, a distance of 211.11'; thence S 73°43'17" E, a distance of 338.63'; thence S 52°27'41" E, a distance of 196.71'; thence S 39°34'39" E, a distance of 236.01'; thence S 37°12'46" E, a distance of 354.31'; thence S 35°31'41" E, a distance of 207.02'; thence S 59°58'01" E, a distance of 251.78'; thence S 49°29'56" E, a distance of 254.56' to  a corner to this property, the property of King and the property of John Savedge Estate; thence continuing downstream with the line of Savedge S 39°34'39" E, a distance of 457.26'; thence S 51°21'51" E, a distance of 286.29'; thence S 39°34'39" E, a distance of 236.01'; thence S 39°34'39" E, a distance of 236.01'; thence S 23°45'57" E, a distance of 214.63'; thence S 34°51'21" E, a distance of 177.61'; thence S 48°57'28" E, a distance of 89.70'; thence S 00°01'19" E, a distance of 229.58'; thence S 01°21'24" W, a distance of 156.20'; thence S 44°43'35" E, a distance of 162.91'; thence S 08°50'16" E, a distance of 85.81'; thence S 47°38'13" E, a distance of 208.57'; thence S 39°34'39" E, a distance of 177.00'; thence S 55°37'33" E, a distance of 112.17' to a point where the northern edge of Dominion Virginia Power's 150' Right of Way intersects Cypress Swamp, a corner of this parcel the property of Savedge and other property of Mussel Fork Farm, L. L. C.; thence along the northern edge of the Dominion Virginia Power Right of Way and along the line of Mussel Fork Farm, L. L. C. S 86°58'48" W, a distance of 845.43'+/- to an Iron Rod Set, continuing on the same bearing a distance of  3374.13' to an Iron Rod Set in the center of the North Access Easement, continuing on the same bearing a distance of  3513.31' to a point on the east end of the centerline of the Center Access Easement, continuing on the same bearing a distance of 113.06' to an Iron Rod Set, continuing on the same bearing a distance of 1972.64'     to a point on the west end of the centerline of the Center Access Easement, continuing on the same bearing a distance of 1026.86' to an Iron Rod Set, continuing on the same bearing a distance of  1377.97' to an Concrete Monument on the Corporate Limits of the Town of Dendron,  continuing on the same bearing a distance of  1194.72' to an Iron Rod Set in the centerline of the South Access Easement, continuing on the same bearing a distance of  1427.31' for a total of  14845.43' to an Concrete Monument Set, the POINT OF BEGINNING; said described tract containing 1573.10 Acres, more or less.

 

BEING the same real estate conveyed to Old Dominion Electric Cooperative, a Virginia utility aggregate, by deed dated May 5, 2010, from Mussel Fork Farm, LLC, a Virginia limited liability company, recorded on May 7, 2010, in the Clerk’s Office of the Circuit Court of Surry County, Virginia, in Deed Book 239, page 614.

 

SUBJECT, however to all existing exceptions, reservations, conditions, restriction, covenants, agreements, limitations and waivers that may apply to the property or any part thereof.

B-31

 

SUSSEX COUNTY

 

Real property in the County of Sussex, State of Virginia, described as follows:

 

PARCELS A, B, C, D, 7A AND 8 containing 1203.37 acres, more or less, as shown on plat of survey by Chas. E. Scheckler, L.S., entitled "ALTA/ACSM Land Title Survey for Old Dominion Electric Cooperative Higgins Tract, Parcel 7A of Sussex Investment Company, LLC and Parcels A, B, C and D of Grayland Company, L.P., Waverly District, Sussex County, Virginia" dated July 8, 2010 and recorded in Plat Book 22, pages 169-172 among the land records of Sussex County, Virginia.  

 

TOGETHER WITH non-exclusive easements: 1) for ingress and egress to maintain access to Route 602; and 2) an easement to construct, reconstruct, operate, maintain and repair one or more additional railspurs to connect to the Norfolk & Western Railroad line, as contained in Deed between Grayland Company, L.P. and The County of Sussex, Virginia and Atlantic Waste Disposal, Inc., dated March 30, 1994, recorded March 31, 1994, in Deed Book 138, page 882, in the aforesaid Clerk's Office.  

 

Parcels A, B, C, D and 7A BEING the same real estate conveyed to Old Dominion Electric Cooperative, a Virginia utility aggregate by deed dated July 8, 2010, from Grayland Company, L.P., a Virginia limited partnership and Sussex Investment Company, LLC, a Virginia limited liability company, recorded on July 9, 2010, in Deed Book 256, page 763.

 

Parcel 8 BEING the same real estate conveyed to Old Dominion Electric Cooperative, a Virginia utility aggregate by deed dated July 6, 2010, from Horace r. Higgins, Jr., Charles Thomas Higgins, and Mary Lou Higgins Savedge, recorded on July 9, 2010, in the Clerk’s Office of the Circuit Court of Sussex County, Virginia, in Deed Book 256, page 769.

 

SUBJECT, however to all existing exceptions, reservations, conditions, restriction, covenants, agreements, limitations and waivers that may apply to the property or any part thereof.

B-32

 

HALIFAX COUNTY

 

 

PARCEL 1:

 

ALL of that certain tract or parcel of land lying and being in the Roanoke District of Halifax County, Virginia, containing a total of 4.753 acres and more particularly described on a plat of survey made by Hurt and Profit, Inc., Engineers and Surveyors, dated April 4, 1991, entitled "PLAT SHOWING PARCEL OF OVERLAP BETWEEN WILLIAM D. AND MARY R. GRAVITT AND BURLINGTON INDUSTRIES", which plat is attached hereto and recorded with this deed in the Clerk's Office of the Circuit Court of Halifax County, Virginia.

 

AND BEING a portion of the property acquired by the Grantor as follows:

 

1.  Burlington Industries, Inc. became vested with the title to the above-described premises by virtue of documents relating to the merger of Pacific Mills and the Pacific Mills Corporation into Burlington Industries, Inc., which documents were duly recorded in the Clerk's Office of the Circuit Court of Halifax County, Virginia, on December 1, 1959, in Charter Book 4, page 222, to which reference is hereby expressly made.

 

2.  Deed recorded in the Clerk's Office of the Circuit Court of Halifax County, Virginia, on the 6th day of June, 1951, in Deed Book 219, page 102

 

PARCEL 2:

 

ALL those certain tracts or parcels of land lying and being in Roanoke District of Halifax County, Virginia, containing a total of 10.978 acres, more or less, and designated separately as Parcel 1 and Tract 2 on a plat of survey by Hurt and Proffitt, Inc., dated April 22, 1991, entitled "Plat Showing Out Parcels From the Properties of Walter & Hazel C. Lacks and William D. and Mary E. Gravitt" and recorded with this deed Clerk's Office of the Circuit Court of Halifax County, Virginia.

 

BEING a portion of the same real estate conveyed to Walter Lacks and Hazel C. Lacks, husband and wife, by deed dated October 31, 1973 from Harry L. Mapp, Jr., Executor under the will of John Lafayette Spencer who died testate on May 6, 1971 and by his last will and testament named the afore said Harry L. Mapp, Jr., as his executor with power to sell and convey the said real estate, which will is of record in the aforesaid Clerk's Office in Will Book 81, page 273, and which deed was recorded January 4, 1974 in the aforesaid Clerk's Office in Deed Book 383, page 114, and by deed dated June 7, 1977 from John H. Brown and Marie H. Brown, husband and wife, which deed was recorded in the Clerk's Office in Deed Book 416, page 175.

 

PARCEL 3:

 

ALL that certain tract or parcel of land, with improvements thereon, located in the Roanoke District of Halifax County, Virginia, containing 10.031 acres, more or less, adjoining property presently owned by Norfolk and Southern Railway Company, and being more particularly shown on a plat of survey dated April 10 1990, prepared by Hurt & Proffitt, Inc., a copy of which plat is recorded contemporaneously herewith.

 

BEING a part of the same real estate conveyed to William E. Watkins and Ruth P. Watkins, by deed from Sterling Ruffin Wallerstein and Marjorie B. Wallerstein, dated October 18, 1983, recorded in the Clerk's Office, Circuit Court, Halifax County, Virginia, in Deed Book 471, page 635.

 

PARCEL 4:

 

ALL that certain tract or parcel of land, with improvements thereon and appurtenances thereunto belonging, lying and being in the Roanoke District of Halifax County, Virginia, containing 3.0 acres, more or less, and fronting 198.89 feet on the northwestern boundary of State Route 600, as shown on a plat of survey made by Alfred M. Carter, P.L.S., dated August 17, 1977, and recorded in the Clerk's Office of the Circuit Court of Halifax County, Virginia, in Deed Book 417, page 541.

 

BEING the same real estate conveyed to Kenneth R. Wilborne and Claudette L. Wilbourne, husband and wife, by deed dated December 16, 1985, recorded in the Clerk's Office, Circuit Court, Halifax County, Virginia, in Deed Book 495, page 299.

B-33

 

 

PARCEL 5: 

 

TRACT ONE:

 

Tract of land containing 694.626 acres lying on State Route No. 855, the southeastern side of the Norfolk Southern Railroad, and the southwestern side of the Staunton River, which tract is more particularly described according to a survey made by Hurt & Proffitt, Inc., dated October 13, 1989, and more particularly described as follows:

 

Beginning at an iron pin set in the southeasterly right of way line of the Norfolk Southern Railroad, 728 feet southwest of the southwest edge of the Staunton River, at the southwest corner of the Fort Hill historical site, and at the end of state maintenance of Secondary Route 855; thence, leaving the said line of the Norfolk Southern, with and along the line of said Fort Hill site, South 69°32”55” East, 440.00 feet to an iron pin set; thence, North 20°28’05” East, passing through an iron pin set at 500.00 feet, in all 552.13 feet to the southwesterly edge of Staunton River; thence, leaving the line of said Fort Hill site, with and along said edge of Staunton River as it meanders, South 48°33’37” East 200.56 feet; South 48°48’14” East, 321.56 feet; South 52°23’14” East, 1012.76 feet; South 42°39’20” East, 550.78 feet; South 27 31 40 East, 422.34 feet South 12°58’34” East, 436.62 feet; South 10°14’58” East 451.05 feet; South 15°58’24” East, 1218.07 feet; South 12°25’42” East, 325.98 feet; South 18°28’04” East, 429.88 Feet; South 20°43’50” East, 368.55 feet; South 23°23’04” East, 368.18 feet; South 26°09’38” East, 838.61 feet; South 33°21’11” East, 222.34 feet; South 36°28’55” East, 694.32 feet; thence, to the line of Charlie L. and Rachel W. Scott; South 50°05’40” East, 122.27 feet; thence, leaving said edge of Staunton River, with and along said line of Scott, South 32°16’41” West, 224.00 feet to an iron pin set; thence, South 44°50’41” West, 318.00 feet to an iron pin set; thence, South 62°17’40” West, 1524.00 feet to an iron pin set; thence, to the corner of Walter & Hazel C. Lacks, South 25°33’42” West 960.00 feet to a nail set in a red oak stump, thence, leaving the line of said Scott, with and along the line of said Lacks, South 85°50’41” West, 990.00 feet to an iron pin set; thence, North 56°53’19” West, 435.64 feet to an iron pin set; thence, South 58’22’41” West, 239.84 feet to an iron pin set; thence, to the corner of William D. and Mary R. Gravitt, North 76°33’19” West, 459.90 feet to an iron pin set in the centerline of an old road; thence, leaving the line of said Lacks with and along the line of said Gravitt, North 00°15’19” West, 431.90 feet to an iron pin set; thence, North 40°33’41” East, 665.47 to an iron pin set, thence, South 47°36’47” East, 195.73 feet to an iron pin set in an old road scar; thence,  following said road scar at it meanders, still with and along the line of said Gravitt, North 23°58’41” East, 302.54 feet to an iron pin set; North 7°44’41” East, 185.27 feet to an iron pin set, North 16°40’19” West, 204.80 feet to an iron pin set, North 44°59’19” West, 216.53 feet to an iron pin set, North 13°28’10” West, 410.98 feet to an iron pin set, North 12°15’19” West, 134.40 feet to an iron pin set, North 34°11’19” West, 325.30 feet to an iron pin set; thence, continuing with said road scar, with and along the eastern line of a parcel of questionable ownership, North 16°05’31” West, 105.82 feet to an iron pin set; thence, North 2°34’03” West, 160.32 feet to the center of a creek; thence, leaving said road scar, with the creek as it meanders, South 41°45’45” West, 513.05 feet to an iron pin set, thence, leaving said creek, South 53°14’45” West, 321.96 feet to an iron pin set, thence, South 38°05’45” West, 176.00 feet to an iron pin set; thence, to the corner of Elmer J. Nichols, South 50°38’45” West, 442.43 feet to and iron pin set; thence, leaving the line of said parcel of questionable ownership, with and along the line of said Nichols, to the southeasterly right of way of the Norfolk Southern Railroad, North 74°35’15” West, 2083.00 feet thence, leaving said line of Nichols, with and along said line of the Norfolk Southern, North 28°10’42” East, 3818.07 to an iron pin set; thence, with a curve to the left having delta of 7°42’38”, radius of 5779.78 feet, length of 777.80 feet and chord bearing North 24°19’24” East, 777.22 feet to an iron pin set, thence North 20°28’05” East, 1832.19 feet to the iron pin set on said line of the Norfolk Southern at the southwesterly corner of the Fort Hill site, the point of beginning .  Said tract or parcel containing 694.626 acres, more or less.

 

TOGETHER WITH a permanent easement and right-of-way for a roadway and power transmission and telephone lines over lands leading from the southern boundary of what was formerly Tract No. 5, containing 507.1 acres per survey recorded in the Clerk's Office of the Circuit Court of Halifax County, Virginia, in Plat Book 2, page 7, in a southerly direction approximately along the course of the present plantation road to the intersection of the present plantation road with U.S. Highway No. 360, the said right-of-way being 50 feet in width and extending 25 feet on each side of the centerline of the aforesaid plantation road, which said plantation road forms the boundary line between Tracts 2 and 3 of said farm and forms a part of the boundary line between Tracts 2 and 4 of said farm as shown on the aforementioned plat of survey of Fort Hill Farm. 

 

TOGETHER WITH all right, title and interest as to (1) riparian rights in and to the waters of Staunton River and as to (2) easements or rights-of-way over or across the Simms plantation, both being further described in the Clerk's Office in Deed Book 219, page 104.

 

B-34

 

Tract One and appurtenant rights were acquired by the Grantor by deed dated January 12, 1990, from Charlotte Timber  Co., Inc., a Virginia corporation, which deed is recorded in the Clerk's Office in Deed Book 545, page 103.

 

TRACT TWO:

 

Tract of land containing 156.755 acres lying on the southeastern side of State Route 600, the southwestern side of State Route 855, and the northwestern side of the Norfolk Southern Railroad, which tract is more particularly described according to a survey made by Hurt & Proffitt, Inc. dated October 13, 1989, and more particularly described as follows:

 

Beginning at the junction of said Route 600 with Secondary Route 855 and the centerline of said Route 855 at an iron pin set at the intersection of the southeasterly right of way line of said Route 600; leaving the line of said Route 600, with and along said centerline of Route 855, with a curve to the right having delta of 25°57’45” radius of 131.27 feet, length of 59.48 feet and chord bearing South 61°11’37” East, 58.97 feet to an iron pin set; thence, South 48°12’47” East, 422.40 feet to an iron pin set; thence, with a curve to the left having delta of 15°15’05”, radius of 1493.82 feet, length of 397.63 feet, and chord bearing South 55°50’19” East, 396.48 feet to an iron pin set; thence, South 63°27’53: East, 203.44 feet to an iron pin set on the northwesterly right of way line of the Norfolk Southern Railroad; thence, leaving said centerline of Route 855, with and along said line of the Norfolk Souther, South 28°10’42” West, 4759.09 feet to an iron pin set; thence, leaving said line of the Norfolk Southern, with a new line to the southeasterly right of way of Route 600 at the junction of Route 600 with Route 778, North 55°07’04” West, 1384.01 feet to the iron pin set; thence with and along said line of Route 600, with a curve to the right, having delta of 3°22’45”, radius of 1709.23 feet, length of 100.81 feet, and chord bearing North 30°39’15” East, 100.79 feet to an iron pin set; thence, North 32°20’38” East, 160.00 feet to an iron pin set; thence, with a curve to the left, having delta of 6°42’03”, radius of 2124.24 feet, length of 248.44 feet, and chord bearing North 28°59’36” East, 248.30 feet to an iron pin set, thence, with a curve to the left, having delta of 18°12’46”, radius of 830.34 feet, length of 263.94 feet, and chord bearing North 16°32’11” East, 262.83 feet to an iron pin set; thence, North 7°25’48” East, 238.00 feet to an iron pin set; thence, with a curve to the right, having delta of 9°46’21”, radius  of 1598.32 feet, length of 272.61 feet, and chord bearing North 12°18’59” East, 272.28 feet to an iron pin set; thence, North 17°12’09” East, 365.17 feet to an iron pin set; thence, with a curve to the right having delta of 9°18’45”, radius of 2596.66 feet, length of 422.04 feet, and chord bearing North 21°51’32” East, 421.58 feet to an iron pin set; thence, North 26°30’54” East, 530.43 feet to an iron pin set; thence, with a curve to the right, having delta of 3°19’16”, radius of 2106.54 feet, length of 122.10 feet, and a chord bearing North 28°10’32” East, 122.09 feet to an iron pin set; thence, North 29°50’10” East, 162.48 feet to an iron pin set; thence, with a curve to the right, having delta of 23°29’39”, radius of 510.40 feet, length of 209.29 feet, and chord bearing North 41°34’59” East, 207.83 feet to an iron pin set; thence, with a curve to the right, having delta of 7°56’21”, radius of 1550.23 feet; length of 214.80 feet, and chord bearing North 57°17’59” East, 214.63 feet to an iron pin set; thence, North 61°16’10” East, 468.40 feet to an iron pin set; thence, with a curve to the right, having delta of 0’38’39”, radius of 15.802.43 feet, length of 177.66 feet, and chord bearing North 61°35’29” East, 177.66 feet to an iron pin set; thence, North 61°54’48” East, 129.09 feet to an iron pin set; thence, with a curve to the left, having delta of 32°34’26”, radius of 401.07 feet, length of 228.01 feet and chord bearing North 45°37’35” East, 224.96 feet to an iron pin set; thence, North 29°20’22” East, 492.99 feet to an iron pin set; thence, with a curve to the left, having delta of 24°58’01”, radius of 342.38 feet, length of 149.19 feet, and chord bearing North 16°51’22” East, 148.02 feet to an iron pin set in the centerline of Secondary Route 855, the point of beginning; said tract or parcel of land containing 156.755 acres, more or less.

 

 

TRACT THREE:

 

Tract of land containing 388.023 acres lying on State Route 600, the northeastern side of State Route 855, and the southwestern side of the Staunton River, which tract is more particularly described according to a survey made by Hurt & Proffitt, Inc. dated October 13, 1989, and more particularly described as follows:

 

Beginning at an iron pin set at the intersection of the center line of Secondary Route 855 and the easterly right of way line of Secondary Route 600, thence, with and along said line of Route 600, with a curve to the left having delta of 6°16’47”, radius of 342.38 feet, length of 37.53 feet, and chord bearing North 1°13’56” East 37.51 feet to an iron pin set; thence, North 1°54’26” West 1334.71 feet to an iron pin set; thence, with a curve to the left having delta of 11°15’08” radius of 1838.89 feet, length of 361.14 feet, and chord bearing North 7°32’00” West 360.56 feet to an iron pin set; thence, North 13°09’34” West 432.30 feet to an iron pin set; thence, with a curve to the left having delta of 15°59’48”, radius of 1308.15 feet, length of 365.23 feet, and a chord bearing North 21°09’28” West 364.04 feet to an iron pin set; thence, North 29°09’22” West 888.53 feet to an iron pin set; thence. With a curve to the left having a delta of 11°55’01”, radius of 1361.36 feet, length of 283.15 feet, and chord bearing North 35°06’53” West 282.64 feet 

B-35

 

to an iron pin set; thence, North 41°04’23” West 548.31 feet to an iron pin set; thence, with a curve to the right having delta of 12°58’22”, radius of 971.65 feet, length of 220.00 feet and chord bearing North 34°35’12” West 219.53 feet to an iron pin set; thence, North 28°06’01” West 444.64 feet to an iron pin set; thence, with a curve to the left having delta of 22°00’24”, radius of 947.78 feet, length of 364.03 feet, and chord bearing North 39°06’14” West 361.80 feet to an iron pin set; thence, with a curve to the left, having delta of 8°24’19”, radius of 730.00 feet, length of 107.09 feet, and chord bearing North 54°18’34” West 106.99 feet to an iron pin set on said line of Route 600 at the line of B.F. and Ina L. Blount; thence, leaving said line of Route 600, with an along said line of Blount, North 8°19’13” West 109.62 feet to an iron pin found; thence, North 35°25’24” West, 2105.20 feet to an iron pin found at the base of a blazed 28’ triple oak; thence, North 42°34’36” East, passing through an iron pin set at 2050.00 feet in all 2100.00 feet to the southwesterly edge of Staunton River, thence, with said edge of Staunton River as it meanders, South 43°30’10” East 417.28 feet; South 45°12’08” East 352.82 feet; South 36°23’38” East 558.26 feet; South 33°15’58” East 496.67 feet; South 30°16’26” East 286.23 feet; South 26°23’00”  East 427.02 feet; South 26°16’22” East 689.22 feet; South 23°58’52” East 635.26 feet; South 26°53’47” East 568.81 feet; South 37°07’58” East 303.46 feet; South 40°09’12” East 443.12 feet; South 46°12’24” East 324.13 feet; thence to the northwesterly right of way, line of the Norfolk Southern Railroad, South 49°29’54” East 1311.47 feet; thence, leaving said edge of Staunton river, with and along said line of the Norfolk Southern, South 20°28’05” West, passing through an iron pin set at 50.00 feet and in all 2558.93 feet to an iron pin set; thence; with a curve to the right having delta of 7°42’38”, radius of 5679.78 feet, length of 764.35 feet, and chord bearing South 24°19’24” West 763.77 feet to an iron pin set; thence, to the center line of Secondary Route 855; South 28°10’42” West, 361.47 feet to an iron pin set; thence, leaving said line of the Norfolk Southern, with and along said center line of Secondary Route 855, North 63°27’53” West, 203.44 feet to an iron pin set, thence, with a curve to the right having delta of 15°15’05”, radius of 1493.82 feet, length of 397.63 feet, and chord bearing North 55°50’19” West 396, 48 feet to an iron pin set; thence, North 48°12’47” West, 422.40 feet to an iron pin set; thence, with a curve to the left, having delta of 25°57’45”, radius of 131.27 feet, length of 59.48 feet, and chord bearing North 61°11’37” West 58.97 feet to the iron pin set at the intersection of said center line of Secondary Route 855, and the easterly right of way line of Secondary Route 600, the point of beginning; said tract or parcel containing 386.023 acres, more or less.

 

 

TRACT FOUR:

 

Tract of land containing 542.194 acres lying on the northeastern side of State Route No. 778 and the western and southwestern sides of State Route No. 600, which tract is more particularly described according to a survey made by Hurt & Proffitt, Inc. dated October 13, 1989, and more particularly described as follows:

 

Beginning at an iron pin set at the Intersection of the northerly right of way line of Secondary Route 778 and the westerly right of way line of Secondary Route 800, thence, with and along said line of Route 778, North 55°07'07" West, 235.11 feet to an iron pin set; thence, with a curve to the right having delta of 3°32'02", radius of 1025.00 feet, length of 63.22 feet, and chord bearing North 53°21'03" West, 63.21 feet to an iron pin set; thence, North 51°35'06" West, 40.00 feet to an iron pin set; thence, with a curve to the left, having delta of 25°30'25", radius of 558.58 feet, length of 248.67 feet, and chord bearing North 64°20'18" West, 246.62 feet to an iron pin set: thence, North 77°05'30" West, 84.41 feet to an iron pin set; thence, with a curve to the right having delta of 4°38'19", radius of 1320.65 feet, length of 106.92 feet and chord bearing North 74°46'21" West, 106.89 feet to an iron pin set; thence, North 72°27'10" West, 176.29 feet to an iron pin set; thence with a curve to the right having delta of 14°15'37", radius of 1049.64 feet, length of 261.25 feet, and chord bearing North 65°19'23" West, 260.57 feet to an iron pin set; thence, with a curve to the right having delta of 5°17'17", radius of 4800.48 feet, length of 443.06 feet, and chord bearing North 55°32'55" West, 442.91 feet to an iron pin set; thence, with a curve to the right, having delta of 4°16'52", radius of 1644.04 feet, length of 122.84 feet, and chord bearing North 50°45'49" West, 122.81 feet to an iron pin set; thence, North 48°37'23" West, 334.58 feet to an iron pin set; thence, with a curve to the right, having delta of 3°14'24", radius of 3228.08 feet, length of 182.54 feet and chord bearing North 47°00'11" West, 182.52 feet to an iron pin set; thence, North 45°22'59" West, 318.01 feet to an iron pin set; thence, with a curve to the right, having delta of 7°41'08", radius of 1212.29 feet, length of 162.61 feet and chord bearing North 41°32'25" West, 162.49 feet to an iron pin set; thence, North 37°41'51" West, 224.07 feet to an iron pin set; thence, with a curve to the left, having delta of 13°17'57", radius of 882.77 feet, length of 204.90 feet, and a chord bearing North 44°20'49" West, 204.44 feet to an iron pin set; thence, North 50°59'49" West, 104.83 feet to an iron pin set; thence with a curve to the right, having delta of 1°56'35", radius of 7051.72 feet, length of 239.13 feet, and chord bearing North 50°01'31" West, 239.12 feet to an iron pin set; thence, North 49°03'14" West, 178.03 feet to an iron pin set; thence, with a curve to the left having delta of 4°24'32", radius of 615.17 feet, length of 47.34 feet, and chord bearing North 51°15'30" West, 47.33 feet to the center of Black Walnut Creek, thence, leaving said line of Route 778, a new line with and along the centerline of Black Walnut Creek, as it meanders, North 29°27'16" East, 269.61 feet; North 47°11'29" East, 57.28 feet; North 7°55'42" East, 41.18 feet; North 26°45'45" East, 

B-36

 

173.42 feet; North 33°16’45” East, 196.12 feet; North 23°45’36” West, 90.08 feet to a point in the center of Black Walnut Creek opposite the mouth of a branch flowing into said Creek from the West, a corner to East Carlton Lacks; thence, with and along the centerline of Black Walnut Creek as it meanders and the line of said Lacks, North 83°37'27" East, 143.91 feet; North 35°11'57" East, 158.13 feet; North 26°42'14" East, 194.44 feet; North 14'32'08” East, 439.12 feet; North 5°12'47" East, 192.69 feet; North 26°41'53” East, 1889.94 feet, passing corner common to said Lacks and Robert T. Seamster Estate, and continuing with and along the centerline of Black Walnut Creek as it meanders and line of said Seamster Estate; thence, North 11°16'57" East, 73.85 feet; North 55°26'32" East, 519.13 feet; North 41°55'05" East, 138.62 feet; North 34°25'24" West, 116.89 feet to corner of said Seamster Estate and B.F. and Ina L Blount; thence, continuing with and along the line of said Blount, North 54°17'27" East, 2095.60 feet to an iron pin found; thence, North 08°19'13" West, 1421.59 feet to an iron pin set on the southwesterly right of way line of Secondary Route 600; thence, leaving the line of said Blount, with and along said line of Route 600, with a curve to the right, having delta of 5°34'40", radius of 690.00 feet, length of 67.17 feet, and chord bearing South 52°53'45" East, 67.15 feet to an iron pin set; thence, with a curve to the right having delta of 22°00'24", radius of 907.78 feet, length of 348.67 feet and chord bearing South 39°06'14" East, 346.53 feet to an iron pin set; thence, South 28°08'01" East, 444.64 feet to an iron pin set; thence, with a curve to the left, having delta of 12°58'22", radius of 1011.65 feet, length of 229.06 feet, and chord bearing South 34°35'12" East, 228.57 feet to an iron pin set; thence, South 41°04'23" East, 548.31 feet to an iron pin set; thence, with a curve to the right, having delta of 11°55'01", radius of 1321.36 feet, length of 274.83 feet and chord bearing South 35°06'53" East, 274.33 feet to an iron pin set; thence, South 29°09'22" East, 888.53 feet to an iron pin set; thence, with a curve to the right, having delta of 15°59'48", radius of 1268.15 feet; length of 354.06 feet, and chord bearing South 21°09'28" East, 352.91 feet to an iron pin set; thence, South 13°09'34" East, 432.30 feet to an iron pin set; thence, with a curve to the right, having delta of 11°18'08", radius of 1798.89 feet, length of 353.28 feet, and chord bearing South 7°32'00" East, 352.71 feet to an iron pin set; thence, South 1°54'26" East, 1334.71 feet to an iron pin set; thence, with a curve to the right, having delta of 31°14'48", radius of 302.38 feet, length of 164.91 feet and chord bearing South 13°42'58" West, 162.87 feet to an iron pin set; thence, South 28°20'22" West, 208.32 feet to an iron pin set, corner to Kenneth R. & Claudette L. Wilbourne; thence, leaving said line of Route 600, with and along the line of said Wilborne, North 70°40'03" West, passing through an iron pin found at 686.80 feet, in all 695.33 feet to the centerline of a branch, thence, with and along the centerline of said branch, as it meanders:  South 23°44'43" West, 34.33 feet; South 5°34'21" West, 141.37 feet; South 39°47'27" East, 83.72 feet; thence, South 72°32'08" East, 558.14 feet, passing through an iron pin found at 23.85 feet.  In all 558.14 feet to an iron pin set on the northwesterly right of way line of Secondary Route 600; thence, leaving the line of said Wilbourne with and along said line of Route 600, South 29°20'22" West, 85.33 feet to an iron pin set; thence, with a curve to the right, with delta of 32°34'26", radius of 361.07 feet, length of 205.27 feet, and chord bearing South 45°37'35" West, 202.52 feet to an iron pin set; thence, South 61°54'18" West, 129.09 feet to an iron pin set; thence, with a curve to the left with delta of 0°38'39", radius of 15,842.42 feet, length of 178.11 feet, and chord bearing South 61°35'29" West, 178.11 feet to an iron pin set; thence, South 61°16'10" West, 468.40 feet to an iron pin set; thence, with a curve to the left, having delta of 7°56'21", radius of 1590.23 feet, length of 220.35 feet and chord bearing South 57°17'59" West, 220.17 feet to an iron pin set; thence, with a curve to the left, having delta of 23°29'39", radius of 550.40 feet, length of 225.69 feet, and chord bearing South 41°34'59” West, 224.11 feet to an iron pin set; thence, South 29'50'10” West, 162.48 feet to an iron pin set; thence, with a curve to the left, having delta of 3°19'16”, radius of 2146.54 feet, length of 124.42 and chord bearing South 28°10’32” West, 124.41 feet to an iron pin set; thence, South 26°30'54” West, 530.43 feet to an iron pin set; thence, with a curve to the left, having delta of 9°18'45”, radius of 2638.66 feet, length of 428.54 feet, and chord bearing South 21°51'32” West, 428.07 feet to an iron pin set; thence, South 17°12'09” West, 365.17 feet to an iron pin set; thence, with a curve to the left, having delta of 8°46'21”, radius of 1638.32 feet, length of 279.44 feet, and chord bearing South 12'18'59”, West 279.10 feet to an iron pin set; thence, South 7°25'48” West, 238.00 feet to an iron pin set; thence, with a curve to the right, having delta of 18°12'46”, radius of 790.34 feet, length of 251.23 feet, and chord bearing South 16°32'11” West, 250.17 feet to an iron pin set; thence, with a curve to the right having delta of 6°42'03”, radius of 2084.24 feet, length of 243.76 feet and chord bearing South 28°59'36” West, 243.62 feet to an iron pin set; thence, South 32°20'38” West, 160.00 feet to an iron pin set; thence, with a curve to the left, having delta of 2'25'16”, radius of 1749.23 feet, length of 73.91 feet, and chord bearing South 31°08'01” West, 73.91 feet to the iron pin set at the Intersection of the northerly right of way line of Secondary Route 778 and the westerly right of way line of Secondary Route 600, the point of beginning; said parcel containing 542.194 acres more or less.

Tracts Two, Three and Four were acquired by the Grantor by the following deeds: (a) an undivided 83.9% interest by deed dated January 11, 1990, from William R. Watkins and Ruth P. Watkins, husband and wife, which deed is recorded in the Clerk's Office in Deed Book 545, page 14; (b) an undivided 9.2% interest by deed dated January 11, 1990, from V.M.I. Foundation Incorporated, which deed is recorded in the Clerk's Office in Deed Book 546, page 10; (c) an undivided 4.6% interest by deed dated January 29, 1990, from L. L. Dillard, Jr. and others, Trustees of First Presbyterian Church, which deed is recorded in the Clerk's Office in Deed Book 546, page 19, and (d) an undivided 2.3% interest by deed dated January 12, 1990, from Hollins College Corporation which deed is recorded in the Clerk's 

B-37

 

Office in Deed Book 547, page 142.    

 

LESS AND EXCEPT that property described in Deed Book 570, page 10, recorded in the aforesaid Clerk's Office.

 

LESS AND EXCEPT that property described in Deed Book 580, page 576, recorded in the aforesaid Clerk's Office.

 

LESS AND EXCEPT that property described in Deed Book 627, page 57, recorded in the aforesaid Clerk's Office.

 

LESS AND EXCEPT that property described in Deed Book 632, page 255, recorded in the aforesaid Clerk's Office.

 

LESS AND EXCEPT that property described in Deed Book 652, page 736, recorded in the aforesaid Clerk's Office.

 

SUBJECT, however to all existing exceptions, reservations, conditions, restrictions, covenants, agreements, limitations and waives that may apply to the Clover Project Property or any part thereof, including, but not limited to:

 

(i)The Permitted Encumbrances as defined in the Indenture;

	
(ii)
	
The permitted Encumbrances, as described in the Clover Project Purchase Agreement (hereinafter defined);

	
(iii)
	
The provisions for Waiver of Partition set forth in Article VI of the Clover Project Purchase Agreement;

	
(iv)
	
The provisions for the adjustment of ownership interests set forth in Article XV of the Clover Project Purchase Agreement and Article VIII of the Clover Operating Agreement (as herein after defined);

	
(v)  
	
The provisions for the right of first refusal of Virginia Power upon any sale of an ownership interest in the Clover Project as required by Article XVII of the Clover project as required by Article XVII of the Clover Project Purchase Agreement and Article XV of the Clover Operating Agreement; and

	
(vi)  
	
All of the provisions of the Clover Project Purchase Agreement and the Clover Operating Agreement (hereinafter defined).  

 

The “Clover Project Purchase Agreement” means that certain Clover Purchase, Construction and Ownership Agreement dated as of May 31, 1990, between Old Dominion and Virginia Power, a copy of which is attached as Appendix I to that certain deed from Clover project Corporation to Old Dominion dated May 30, 1990, recorded in the Clerk’s Office of the Circuit Court of Halifax County, Virginia in Deed Book 550, at page 465 (“CPC Deed”), to which reference is made for a more particular description.

 

The “Clover Operating Agreement” means that certain Clover Operating Agreement between Old Dominion and Virginia Power, a copy of which is attached as Appendix II to the CPC Deed, to which reference is made for a more particular description.

B-38

 

LOUISA, ORANGE AND SPOTSYLVANIA COUNTIES

NORTH ANNA PROPERTY

 

NORTH ANNA PROPERTY DESCRIPTION:

 

ALL that certain piece or parcel of land, together with all improvements thereon and appurtenances thereunto and all rights, privileges and easements thereunto belonging, lying and being in the Counties of Louisa, Orange and Spotsylvania, Virginia, being all of the same 11.6 percent undivided interest in land conveyed in Virginia Electric and Power Company ("Virginia Power") to Old Dominion Electric Cooperative ("Old Dominion") as tenants in common by Special Warranty Deed dated December 21, 1983, (the "Virginia Power Deed") and recorded in (i) the Clerk's Office of the Circuit Court of Louisa County, Virginia in Deed Book 271, page 302; (ii) the Clerk's Office of the Circuit Court of Orange County, Virginia in Deed Book 353, page 133; and (iii) the Clerk's Office of the Circuit Court of Spotsylvania, Virginia in Deed Book 604, page 1, to which reference is hereby made for a more particular description.  

 

LESS AND EXCEPT, however, the land conveyed by Virginia Power and Old Dominion by those certain deeds listed in below to which reference is hereby made for a more particular description:

 

Grantees:Date of Deed:Clerk’s Office:Deed Book/Page

 

Robert W. WhitlockFeb. 7, 1984Louisa Co.275/312

 

Lake Anna Land Corp.Sept. 20, 1984Louisa Co.282/516

 

W.W. Whitlock

Agency, Inc.Jan. 25, 1990Spotsylvania Co.902/552

 

Francis X. Burke, et al.Nov. 1, 1990Louisa Co.394/244

 

Rita A. Romano, et al.Nov. 26, 1990Louisa Co.394/507

 

 

LESS AND EXCEPT, however, the land more particularly described below to which reference is hereby made for a more particular description:

 

Grantees:Date of Deed:Clerk’s Office:Deed Book/Page

 

Richard D. BuppNov. 28, 1991Louisa Co.402/441

 

Jodi L. Ladden &

Richard C. StirlingJune 19, 1991Louisa Co.410/319

 

Lord-Nelson Real EstateJune 27, 1991Louisa Co.405/431

 

William P. Kilroy, et alJune 27, 1991Louisa Co.405/820

James R. Wright, et al.Nov. 28, 1990Spotsylvania Co.960/850

 

Tricord, Inc.Jan. 29, 1992Louisa Co.417/7

 

Edmondia B. SheltonDec. 2, 1991Louisa Co.417/136

 

 

SUBJECT, however to all existing exceptions, reservations, conditions, restrictions, covenants, agreements, limitations and waives that may apply to the North Anna Property or any part thereof, including, but not limited to:

 

	
(i)
	
The system electric transmission facilities and related easements reserved by Virginia Power in the Virginia Power Deed.

	
(ii)
	
The permitted Encumbrances as defined in the Indenture.

	
(iii)
	
The permitted Encumbrances, as described in the North Anna Purchase Agreement (hereinafter defined).

B-39

 

	
(iv)
	
The provisions for Waiver of Partition set forth in Article X of the North Anna Purchase Agreement.

	
(v)
	
The provisions for the adjustment of ownership interests set forth in Article XV and Article XVI of the North Anna Purchase Agreement (hereinafter defined.)

	
(vi) 
	
All of the provisions of the North Anna Purchase Agreement, the Interconnection and Operating Agreement and the Nuclear Fuel Agreement (hereinafter defined).  

 

The "North Anna Purchase Agreement" means that certain Purchase, Construction and Ownership Agreement dated as of December 28, 1982, but amended and restated as of October 17, 1983, between Virginia Power and Old Dominion, a copy of which is attached to the Virginia Power Deed as Appendix I, and to which reference is made for a more particular description. 

 

The "Interconnection and Operating Agreement" means that certain agreement dated as of dated December 28, 1982, but amended and restated as of October 17, 1983, between Virginia Power and Old Dominion, a copy of which is attached to the Virginia Power Deed as Appendix II, and to which reference is made for a more particular reference. 

 

The "Nuclear Fuel Agreement" means that certain agreement dated as of dated December 28, 1982, between Virginia Power and Old Dominion, a copy of which is attached to the Virginia Power Deed as Appendix III, and to which reference is made for a more particular reference. 

 

NOTE:  Various parcels have been conveyed to adjoining landowners abutting the Lake Anna shoreline from time to time.

B-40

 

NORTHAMPTON COUNTY

 

TRACT A:

 

All that 6.469 acres near Bayview, being more fully described as follows:

 

Beginning at a pipe found on the west r/w line of Bayview Road (Route 684), said pipe being the southeast corner of property now or formerly of heirs of Andrew Elsner, and running along the west r/w of said Route 684 in a direction of South 07° 53' 27" East, for a distance of 300.00 feet to a pin, said pin being the northeast corner of property now or formerly of heirs of Estelle Banks Parker, thence along the property now or formerly of said heirs of Estelle Banks Parker, in a direction of North 85° 50' 05" West, for a distance of 975.68 feet to a pipe found on the east edge of Delmarva Power & Light Company easement at the northeast corner of the property now or formerly of the heirs of Estelle Banks Parker, thence along the east r/w line of said Delmarva Power & Light Company easement in a direction of North 20° 40' 41" East, for a distance of 312.37 feet to a pipe found on the east line of Delmarva Power & Light Company easement at the southwest corner of property now or formerly of heirs of Andrew Elsner, thence along said property now or formerly of heirs of Andrew Elsner, in a direction of South 85° 49' 35" East, for a distance of 906.42 feet to the point of beginning. This property is bounded on the north by land now or formerly of heirs of Andrew Elsner, east by Bayview Road (Route 684) on the south by land now or formerly of heirs of Estelle Banks Parker and on the west by Delmarva Power & Light Company easement. LESS AND EXCEPT a 1.274 acre parcel described in Deed Book 321, page 173.

 

The above described Tract A is all and the same real estate conveyed to Eastern Shore Public Service Company of Virginia, by deed dated August 26, 1961 from Estelle B. Parker, et als, which deed if recorded in the Clerk's Office of the Circuit Court for the County of Northampton in Deed Book 144, at page 577.

 

TRACT B:

 

All that certain lot or parcel of land situate near Bayview, Northampton County, Virginia, containing 3.83 acres, more or less, and being more particularly bounded and described as follows: commencing at a certain point designated by a pipe in concrete on the East side of the right-or-way of the New York, Philadelphia and Norfolk Railroad Company, now or formerly the Penndel Company and running thence South 84° 14' East a distance of 648.90 feet to a point designated by a pipe in concrete; thence running North 22° 12' East a distance of 349.42 feet to a point designated by a pipe in concrete; thence running North 79° 58' West a distance of 213.48 feet to a point designated by a pipe in concrete; thence running North 3° 26' West a distance of 83.79 feet to a point designated by a pipe in concrete; thence running generally in a southwesterly direction along right-of-way of said railroad to the point of beginning, the chord between the point of beginning and the last mentioned point being South 56° 01' West 678.23 feet all as shown on that certain map or plat made by George H. Badger, Jr., County Surveyor, under date of May 30, 1962, entitled "Property of Eastern Shore Public Service Company of Virginia near Bayview, Northampton County, Virginia', which said map or plat is attached to and a part of a certain deed dated July 6, 1962 to Eastern Shore Public Service Company of Virginia, from Joseph E. Elsner, et ux and Martin A. Elsner, et ux, recorded in Deed Book 147, at page 41, and to which said map or plat reference is made for a more particulate description of the property herein conveyed. The lot or parcel of land hereby conveyed is bounded generally on the North by the railroad right-of-way and other lands now or formerly of Joseph E. Elsner, et ux, et als, on the East by the lands formerly belonging to the Cape Charles Railroad Company, on the South by the lands now or formerly of Joseph E. Elsner, et ux, et als, and on the West by the right-of-way of the New York, Philadelphia & Norfolk Railroad Company, now or formerly known as Penndel Company. The lot or parcel of land hereby conveyed is the same certain tract or parcel of land which was conveyed by Joseph E. Elsner, et ux and Marin A. Elsner, et ux, to Eastern Shore Public Service Company of Virginia, by deed dated July 6, 1962, and of record in the Clerk's Office of Northampton County, Virginia, Deed Book 147, page 41.

 

TRACT C:

 

All that strip or parcel of land, 66 feet wide, situate in Capeville District, County of Northampton, and Commonwealth of Virginia, said strip of land being the right of way for railroad acquired by the Cape Charles Railroad Company for the Bayview Connection (never built), bounded and described as follows, viz:

 

Beginning at a point where the Easterly right of way line of said Bayview Connection (never built) meets the Easterly right of way line of railroad now or formerly of the Penndel Company, known as the Delmarva Branch, distant 313.69 feet measured S. 22° 12' W., from a point opposite a point of curve in the center line of said railroad, known as the Delmarva Branch, said point of curve being 1,579.10 feet measured Southwardly along said center line of railroad from 

B-41

 

another point therein opposite said Penndel Company's Mile Post 91;

 

Extending from said beginning point, the following seven courses and distances, the first two thereof being along said Easterly right of way line of Bayview connection (never built); (1) S. 22° 12' W., 2,178.31 feet to a point of Curve; (2) Southwardly , crossing Virginia Highway Route 642, or a curve to the left having a radius of 5,695.45 feet and a central angle of 42° 20' 32.07", the arc distance of 4,209.003 feet to a corner; the following two courses and distances being by remaining land of said Penndel Company; (3) N. S6° 54' W., 11.99 feet to a point distant 33 feet Eastwardly as right angles from the center line of railroad now or formerly of said Penndel Company, known as the Cape Charles Branch; (4) N. 25° 39' W., parallel with said last mentioned center line, 515.61 feet to the Westerly right of way line of said Bayview Connection (never built); the following two courses and distances being along said Westerly right of way line of Bayview Connection (never built), parallel with and 66 feet Westwardly, radially and at right angles from courses numbers two and one herein; (5) Northwardly, recrossing said Virginia Highway Route 642, on a curve to the right having a radius of 5,761.45 feet and a central angle of 37° 10' 14", the arc distance of 3,737.734 feet to a point of tangent; (6) N. 22° 12' E., 1,502.84 feet to said Easterly right of way line of the Delmarva Branch of railroad; and (7) Northwardly, along the same, by remaining land now or formerly of said Penndel Company, parallel with and 50 feet Eastwardly and radially from the center line of said railroad, known as the Delmarva Branch, on a curve to the left having a radius of 2,902.61 feet, the arc distance of 381.50 feet to the place of beginning.

 

Containing 8.36 acres, more or less, as shown in yellow outline on a certain plat recorded in Plat Book 5, at Page 100.

 

Being the same strip or parcel of land conveyed from Penndel Company to Eastern Shore Public Service Company of Virginia, by deed dated August 9, 1962, recorded in aforesaid Clerk's Office in Deed Book 147, at page 194.

 

TRACT D:

 

All that certain strip, piece or parcel of land containing 4.36 acres, more or less, all as indicated on a certain plat recorded with a certain deed of exchange between Eastern Shore Public Service Company of Virginia and Henry Lee Gladden, et ux, dated October 17, 1962, and recorded in the aforesaid Clerk's Office in Deed Book 147, at page 433; being the same property conveyed to Eastern Shore Public Service Company of Virginia from Henry Lee Gladden, et ux, by deed dated October 17, 1962, and recorded in Deed Book 147, at page 433.

 

TRACT E:

 

All those two (2) certain strips, pieces or parcels of land containing 3.468 acres, more or less, all as indicated on that certain plat recorded in Plat book 15, at page 4 and designated as "PROPERTY OF ESTATE OF H. L. GLADDEN TO BE CONVEYED TO DELMARVA POWER & LIGHT CO.", and delineated as the area enclosed in solid lines:

 

Parcel 1: Commencing at the pipe at the Northwest corner of the strip of land hereby conveyed and situate on the Southern right of way line of Virginia State Route 642, which is Thirty Feet (30 Ft.) wide, hereby designated as the "Point of Beginning", thence running South 15 deg 08 min 47 sec East a distance of 1,044.62 feet to another pipe; thence turning and running South 02 deg 54 min 41 sec East a distance of 1, 226.88 feet to another pipe; thence turning and running North 85 deg 06 min 13 sec East a distance of 25.02 feet to another pipe; thence turning and running South 02 deg 54 min 41 sec East a distance of 66.04 feet to another pipe; thence turning and running South 85 deg 06 min 13 sec West a distance of 177.25 feet to another pipe; thence turning and running North 04 deg 37 min 00 sec West a distance of 66.09 feet to another pipe, thence turning and running North 85 deg 06 min 13 sec East a distance of 88.17 feet to another pipe; thence turning and running North 02 deg 54 min 41 sec West a distance of 1,220.58 feet to another pipe; thence turning and running North 15 deg 08 min 47 sec West a distance of 682.21 feet to another pipe; thence turning and running North 04 deg 37 min 00 sec West a distance of 362.93 feet to the "Point of Beginning", containing 3.439 acres, more or less.

 

Parcel 2: Commencing at a pipe at the Northeast corner of the strip of land hereby conveyed and situate on the Southern right of way line of Virginia State Route 642, which is Thirty Feet (30 ft.) wide, hereby designated as the "Point of Beginning", thence running South 04 deg 37 min 00 sec East a distance of 66.46 feet to another pipe; thence turning and running South 78 deg 36 min 43 sec West a distance of 12.75 feet to another pipe; thence turning and running North 15 deg 08 min 47 sec West a distance of 66.15 feet to another pipe situate on the Southern right of way line of Virginia State Route 642; thence turning and running along the Southern right of way line of Virginia State Route 642 North 78 deg 36 min 43 sec East a distance of 25 feet to the "Point of Beginning", containing .029 Acre, more or less.

 

Being the same real estate conveyed to Delmarva Power and Light Company, by Deed of Exchange from Roxie M. 

B-42

 

Gladden, Virginia G. Savage, Thomas J. Savage, Sr. and Dorothy Elizabeth Gladden in Deed Book 229, page 592.

 

SUBJECT, however to all existing exceptions, reservations, conditions, restriction, covenants, agreements, limitations and waivers that may apply to the property or any part thereof.

 

B-43

 

Schedule of Certain Excepted Property

 

All nuclear fuel that is not located in the Commonwealth of Virginia.

B-44EX-10.1

 EXHIBIT 10.1 

FIRST AMENDMENT TO 

SECOND LIEN CREDIT AGREEMENT 
 FIRST
AMENDMENT TO SECOND LIEN CREDIT AGREEMENT (this “Amendment”) dated as of July 7, 2017 among 
 SEARS HOLDINGS CORPORATION, a Delaware
corporation (“Holdings”), 
 SEARS ROEBUCK ACCEPTANCE CORP., a Delaware corporation, and KMART CORPORATION, a Michigan corporation (the
“Borrowers”), 
 the Guarantors listed on the signature page hereto (the “Guarantors”). 

JPP, LLC and JPP II, LLC, as Lenders, and 
 JPP, LLC, as
Administrative Agent and collateral administrator (the “Agent”), 
 in consideration of the mutual covenants herein contained and benefits
to be derived herefrom. 
 W I T N E S S E T H: 

WHEREAS, Holdings, the Borrowers, the Lenders party thereto, Guarantors party thereto and the Agent are party to that certain Second Lien
Credit Agreement (the “Existing Second Lien Credit Agreement”; the Existing Second Lien Credit Agreement as amended hereby, the “Amended Second Lien Credit Agreement”); and 

WHEREAS, Holdings, the Borrowers, the Guarantors, the Lenders and the Agent have agreed to amend the Existing Second Lien Credit Agreement.

 NOW THEREFORE, in consideration of the mutual promises and agreements herein contained, the parties hereto hereby agree as follows: 

 

	1.	Incorporation of Terms. All capitalized terms not otherwise defined herein shall have the same meaning as in the Amended Second Lien Credit Agreement. 

 

	2.	Representations and Warranties. Holdings and each Borrower hereby represents and warrants that (i) no Default or Event of Default exists under the Existing Second Lien Credit Agreement or under any other
Loan Document as of the date hereof, and (ii) all representations and warranties contained in the Amended Second Lien Credit Agreement and the other Loan Documents are true and correct in all material respects as of the date hereof, except to
the extent that (A) such representations or warranties are qualified by a materiality standard, in which case they are true and correct in all respects, and (B) such representations or warranties expressly relate to an earlier date (in
which case such representations and warranties are true and correct in all material respects as of such earlier date). 

	3.	Release by Borrowers. Each Borrower hereby acknowledges and agrees that it has no actual knowledge of any defenses or claims against any Lender, the Agent, any of their Affiliates, or any of their respective
officers, directors, employees, attorneys, representatives, predecessors, successors, or assigns with respect to the Obligations, and that if such Borrower now has, or ever did have, any defenses or claims with respect to the Obligations against any
Lender, the Agent or any of their respective officers, directors, employees, attorneys, representatives, predecessors, successors, or assigns, whether known or unknown, at law or in equity, from the beginning of the world through this date and
through the time of effectiveness of this Amendment, all of them are hereby expressly WAIVED, and each Borrower hereby RELEASES each Lender, the Agent and their respective officers, directors, employees, attorneys, representatives,
predecessors, successors, and assigns from any liability therefor. 

  

	4.	Amendments to Existing Second Lien Credit Agreement. The Existing Second Lien Credit Agreement is hereby amended to delete the red stricken text (indicated textually in the same manner as the following example:
stricken text) and to add the blue double-underlined text (indicated textually in the same manner as the following example: double-underlined) as set forth in the pages of
the Amended Second Lien Credit Agreement attached as Annex A hereto. Except as provided herein and in the Amended Second Lien Credit Agreement, all of the terms and conditions of the Existing Second Lien Credit Agreement shall remain in full
force and effect. 

  

	5.	Conditions to Effectiveness. This Amendment shall become effective on the date (the “First Amendment Effective Date”) that each of the following conditions precedent has been fulfilled as
determined by the Agent: 

  

	 	a.	This Amendment shall have been duly executed and delivered by Holdings, the Borrowers, each of the Lenders and the Agent, and the Agent shall have received counterparts hereof that, when taken together, bear the
signatures of each of the other parties hereto. 

  

	 	b.	The Agent’s receipt of the following, each of which shall be originals or telecopies (followed promptly by originals) unless otherwise specified, each properly executed by an Authorized Officer of the signing Loan
Party, each dated as of the First Amendment Effective Date (or, in the case of certificates of governmental officials, a recent date before the First Amendment Effective Date) and each in form and substance satisfactory to Agent: 

 

	 	i.	such certificates of resolutions or other action, incumbency certificates and/or other certificates of Authorized Officers of each Loan Party as the Agent may reasonably require evidencing (A) the authority of each
Loan Party to enter into this Amendment and the other documents or instruments executed or to be executed in connection with this Amendment to which such Loan Party is a party or is to be a party and (B) the identity, authority and capacity of
each Authorized Officer thereof authorized to act as an Authorized Officer in connection with this Amendment and such other documents to which such Loan Party is a party or is to be a party (or, in the case of this clause (B), in the Agent’s
discretion “no change” certifications); 

  
 -2- 

	 	ii.	copies of each Loan Party’s organization or other governing documents and such other documents and certifications as the Agent may reasonably require to evidence that each Loan Party is duly organized or formed,
and that each Loan Party is validly existing, in good standing and qualified to engage in business in each jurisdiction where failure to so qualify could reasonably be expected to have a Material Adverse Effect (or, in the Agent’s discretion
“no change” certifications); 

  

	 	iii.	an opinion of in house counsel to Holdings and of one or more special or local counsel to Holdings, the Borrowers, and the other Loan Parties, addressed to the Agent and each Lender as to such matters as the Agent may
reasonably request; provided that if any such opinion is not or cannot be provided on the First Amendment Effective Date after the Loan Parties’ use of commercially reasonable efforts to do so without undue burden or expense, the
provision of such opinions shall not constitute a condition precedent to the effectiveness of this Amendment but shall be required to be delivered within ten (10) Business Days after the First Amendment Effective Date (subject to extension by
the Agent in its sole discretion); 

  

	 	iv.	a perfection certificate dated as of the First Amendment Effective Date with respect to the Borrowers and the other Loan Parties in form reasonably satisfactory to the Agent (the “First Amendment Perfection
Certificate”), with a certification that such First Amendment Perfection Certificate is true and correct in all material respects; 

  

	 	v.	 a certificate signed by an Authorized Officer of Holdings and the Borrowers certifying (A) that the
conditions specified in Section 4.02 of the Amended Second Lien Credit Agreement have been satisfied, (B) that the execution and delivery of the Amendment and the incurrence of Line of Credit Loans, when incurred, will not conflict
with, and the Liens on the Collateral granted on the Effective Date to secure the Loans are permitted by, (i) the indenture governing the Existing Second Lien Notes, (ii) the First Lien Credit Agreement, (iii) the Security Documents
in effect as of the First Amendment Effective Date, including the Security Agreement and the Existing Intercreditor Agreement, (iv) that certain Letter of Credit and Reimbursement Agreement, dated as of December 28, 2016, as amended
March 2, 2017, among Holdings, the Borrowers, certain financial institutions party thereto and Citibank, N.A., as administrative agent and issuing bank, (v) the Amended and Restated Loan Agreement, dated as of May 22, 2017, by and
among JPP, LLC, JPP II, LLC, Cascade Investment, L.L.C., the Borrowers and the other borrower parties thereto, 

  
 -3- 

	 	
(vi) that certain Loan Agreement, dated as of January 3, 2017, by and among JPP, LLC, JPP II, LLC, the Borrowers and the other borrower parties thereto, and (vii) that certain
Receivables and Participation Purchase Agreement, dated as of June 15, 2017, by and among JPP, LLC, JPP II, LLC, Holdings, Kmart Operations LLC and Sears Operations LLC, and (C) that the Loan Parties, taken as a whole, are Solvent as of
the First Amendment Effective Date after giving effect to the transactions contemplated hereby; 

  

	 	vi.	results of searches or other evidence reasonably satisfactory to the Agent (in each case dated as of a date reasonably satisfactory to the Agent) indicating the absence of Liens on the assets of the Loan Parties, except
for Liens permitted by Section 6.02(a) of the Amended Second Lien Credit Agreement; provided that if any such searches or other evidence is not or cannot be provided on the First Amendment Effective Date after the Loan Parties’ use
of commercially reasonable efforts to do so without undue burden or expense, the provision of such searches or other evidence shall not constitute a condition precedent to the effectiveness of this Amendment but shall be required to be delivered
within ten (10) Business Days after the First Amendment Effective Date (subject to extension by the Agent in its sole discretion); and 

  

	 	vii.	such other customary certificates, documents or consents as the Agent reasonably may require. 

  

	 	c.	The conditions set forth in Section 4.02 of the Amended Second Lien Credit Agreement shall be satisfied. 

  

	 	d.	Since January 30, 2017, there has been no event or circumstance, either individually or in the aggregate, that has had or would reasonably be expected to have a Material Adverse Effect. 

 

	 	e.	After giving effect to this Amendment and the transactions contemplated hereunder, Capped Excess Availability shall not be less than $150,000,000. 

 

	 	f.	The Borrowers shall have paid all fees, expenses and other amounts due and owing to the Agent and the Lenders that have executed this Amendment. 

 

	6.	Binding Effect. The terms and provisions hereof shall be binding upon and inure to the benefit of the parties hereto, the Lenders and their respective successors and assigns. 

 

	7.	Expenses. The Borrowers shall reimburse the Agent for all reasonable and documented out-of-pocket expenses incurred in connection herewith, including, without limitation, reasonable attorneys’ fees.

  
 -4- 

	8.	Multiple Counterparts. This Amendment may be executed in multiple counterparts, each of which shall constitute an original and together which shall constitute but one and the same instrument. Delivery of an
executed counterpart of a signature page of this Agreement by facsimile or in electronic (i.e. “pdf” or “tif”) format shall be effective as delivery of a manually executed counterpart of this Agreement. 

 

	9.	Acknowledgement and Reaffirmation. This Amendment shall amend the Existing Second Lien Credit Agreement, but is not intended to, and shall not, constitute a novation thereof or in any way impair or otherwise
affect the rights or obligations of the parties thereunder (including with respect to loans and representations and warranties made thereunder) except as such rights or obligations are amended or modified hereby. The Existing Second Lien Credit
Agreement as amended hereby shall be deemed to be a continuing agreement among the parties, and all documents, instruments and agreements delivered, as well as all Liens created, pursuant to or in connection with the Existing Second Lien Credit
Agreement (as amended) shall remain in full force and effect, each in accordance with its terms (as amended). Each Loan Party (a) acknowledges and consents to all of the terms and conditions of this Amendment, (b) affirms as of the date
hereof the covenants and agreements contained in this Amendment and each Loan Document to which it is a party, including in each case such covenants and agreements as in effect immediately after giving effect to this Amendment and the transactions
contemplated hereby, (c) agrees that this Amendment and all documents executed in connection herewith do no operate to reduce or discharge such Loan Party’s obligations under the Loan Documents, (d) affirms that each of the Liens
granted in or pursuant to the Loan Documents are valid and secure the Secured Obligations (as defined under the Security Agreement), including those Obligations arising under the Amended Second Lien Credit Agreement and (e) agrees that neither
this Amendment nor any other document executed in connection herewith shall in no manner impair or otherwise adversely affect any of the Liens granted in or pursuant to the Loan Documents. Each Guarantor hereby confirms that its guarantee under the
Amended Second Lien Credit Agreement remains unaltered and in full force and effect and hereby reaffirms, ratifies and confirms the terms and conditions of such guarantee. 

 

	10.	Governing Law. THIS AMENDMENT SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES THEREOF OTHER THAN SECTIONS 5-1401 AND 5-1402
OF THE NEW YORK GENERAL OBLIGATIONS LAW. 

 [Remainder of page intentionally left blank; Signature pages follow.] 

  
 -5- 

 IN WITNESS WHEREOF, this Amendment has been duly executed and delivered by each of the parties
hereto as of the date first above written. 
  

			
	SEARS HOLDINGS CORPORATION 
		
	By:	 	 /s/ Robert A. Riecker

	Name:	 	Robert A. Riecker
	Title:	 	Chief Financial Officer
	
	SEARS ROEBUCK ACCEPTANCE CORP.
		
	By:	 	 /s/ Robert A. Riecker

	Name:	 	Robert A. Riecker
	Title:	 	Vice President, Finance
	
	KMART CORPORATION
		
	By:	 	 /s/ Robert A. Riecker

	Name:	 	Robert A. Riecker
	Title:	 	Controller and Head of Capital Market Activities

 [Signature page to First Amendment to Second Lien Credit Agreement] 

 
			
	A&E FACTORY SERVICE, LLC
		
	By:	 	 /s/ Robert A. Riecker

	Name:	 	Robert A. Riecker
	Title:	 	Vice President
	
	A&E HOME DELIVERY, LLC
		
	By:	 	 /s/ Robert A. Riecker

	Name:	 	Robert A. Riecker
	Title:	 	Vice President
	
	A&E LAWN & GARDEN, LLC
		
	By:	 	 /s/ Robert A. Riecker

	Name:	 	Robert A. Riecker
	Title:	 	Vice President
	
	A&E SIGNATURE SERVICE, LLC
		
	By:	 	 /s/ Robert A. Riecker

	Name:	 	Robert A. Riecker
	Title:	 	Vice President
	
	CALIFORNIA BUILDER APPLIANCES, INC.
		
	By:	 	 /s/ Robert A. Riecker

	Name:	 	Robert A. Riecker
	Title:	 	Vice President
	
	FLORIDA BUILDER APPLIANCES, INC.
		
	By:	 	 /s/ Robert A. Riecker

	Name:	 	Robert A. Riecker
	Title:	 	Vice President
	
	KLC, INC.
		
	By:	 	 /s/ Robert A. Riecker

	Name:	 	Robert A. Riecker
	Title:	 	Vice President

 [Signature page to First Amendment to Second Lien Credit Agreement] 

 
			
	KMART HOLDING CORPORATION
		
	By:	 	 /s/ Robert A. Riecker

	Name:	 	Robert A. Riecker
	Title:	 	Controller and Head of Capital Market Activities
	
	KMART OF MICHIGAN, INC.
		
	By:	 	 /s/ Robert A. Riecker

	Name:	 	Robert A. Riecker
	Title:	 	Vice President
	
	KMART OF WASHINGTON LLC
	By: Kmart Corporation, as Sole Member
		
	By:	 	 /s/ Robert A. Riecker

	Name:	 	Robert A. Riecker
	Title:	 	Controller and Head of Capital Market Activities
	
	KMART OPERATIONS LLC
		
	By:	 	 /s/ Robert A. Riecker

	Name:	 	Robert A. Riecker
	Title:	 	Controller and Head of Capital Market Activities
	
	KMART STORES OF ILLINOIS LLC
	By: Kmart Corporation, as Sole Member
		
	By:	 	 /s/ Robert A. Riecker

	Name:	 	Robert A. Riecker
	Title:	 	Controller and Head of Capital Market Activities

 [Signature page to First Amendment to Second Lien Credit Agreement] 

 
			
	KMART STORES OF TEXAS LLC
	By: Kmart Corporation, as Sole Member
		
	By:	 	 /s/ Robert A. Riecker

	Name:	 	Robert A. Riecker
	Title:	 	Controller and Head of Capital Market
		 	Activities
	
	KMART.COM LLC
	By: BlueLight.com, as Sole Member
		
	By:	 	 /s/ Lawrence J. Meerschaert

	Name:	 	Lawrence J. Meerschaert
	Title:	 	Vice President
	
	MYGOFER LLC
	By: Kmart Corporation, as Sole Member
		
	By:	 	 /s/ Robert A. Riecker

	Name:	 	Robert A. Riecker
	Title:	 	Controller and Head of Capital Market
		 	Activities
	
	PRIVATE BRANDS, LTD.
		
	By:	 	 /s/ Robert A. Riecker

	Name:	 	Robert A. Riecker
	Title:	 	Vice President
	
	SEARS BRANDS MANAGEMENT CORPORATION
		
	By:	 	 /s/ Robert A. Riecker

	Name:	 	Robert A. Riecker
	Title:	 	Vice President

 [Signature page to First Amendment to Second Lien Credit Agreement] 

 
			
	SEARS HOLDINGS MANAGEMENT CORPORATION
		
	By:	 	 /s/ Robert A. Riecker

	Name:	 	Robert A. Riecker
	Title:	 	President
	
	SEARS HOME IMPROVEMENT PRODUCTS, INC.
		
	By:	 	 /s/ Robert A. Riecker

	Name:	 	Robert A. Riecker
	Title:	 	President
	
	SEARS OPERATIONS LLC
		
	By:	 	 /s/ Robert A. Riecker

	Name:	 	Robert A. Riecker
	Title:	 	Controller and Head of Capital Market Activities
	
	SEARS PROTECTION COMPANY
		
	By:	 	 /s/ Robert A. Riecker

	Name:	 	Robert A. Riecker
	Title:	 	Vice President
	
	SEARS PROTECTION COMPANY (FLORIDA), L.L.C.
		
	By:	 	 /s/ Robert A. Riecker

	Name:	 	Robert A. Riecker
	Title:	 	Vice President
	
	SEARS, ROEBUCK AND CO.
		
	By:	 	 /s/ Robert A. Riecker

	Name:	 	Robert A. Riecker
	Title:	 	Chief Financial Officer

 [Signature page to First Amendment to Second Lien Credit Agreement] 

 
			
	SEARS, ROEBUCK DE PUERTO RICO, INC.
		
	By:	 	 /s/ Robert A. Riecker

	Name:	 	Robert A. Riecker
	Title:	 	Vice President
	
	SOE, INC.
		
	By:	 	 /s/ Robert A. Riecker

	Name:	 	Robert A. Riecker
	Title:	 	Vice President
	
	STARWEST, LLC
		
	By:	 	 /s/ Robert A. Riecker

	Name:	 	Robert A. Riecker
	Title:	 	Vice President

 [Signature page to First Amendment to Second Lien Credit Agreement] 

 
			
	JPP, LLC, as Agent and as a Lender
		
	By:	 	 /s/ Edward S. Lampert

		 	Name: Edward S. Lampert
		 	Title: Member

 [Signature page to First Amendment to Second Lien Credit Agreement] 

 
			
	JPP II, LLC, as a Lender
	
	By: RBS Partners, L.P., as Manager
	
	By: ESL Investments, Inc., as General Partner
		
	By:	 	 /s/ Edward S. Lampert

		 	Name: Edward S. Lampert
		 	Title: Chairman and Chief Executive Officer

 [Signature page to First Amendment to Second Lien Credit Agreement] 

 Annex A 

Conformed Second Lien Credit Agreement 

[See Attached] 

 EXECUTION
VERSIONANNEX A 

SECOND LIEN CREDIT AGREEMENT 

Dated as of September 1, 2016 

as amended July 7, 2017 

among 
 SEARS HOLDINGS
CORPORATION 
 and 

SEARS ROEBUCK ACCEPTANCE CORP. 

and 
 KMART CORPORATION, 

as Borrowers 

and 

THE GUARANTORS PARTY
HERETO, 
 and 

THE LENDERS NAMED HEREIN, 

and 
 JPP, LLC, 

as Agent 
  

 TABLE OF CONTENTS 

Page 
  

			
	 ARTICLE I DEFINITIONS AND ACCOUNTING TERMS
	  	1
		
	 SECTION 1.01. Certain Defined Terms
	  	1
	 SECTION 1.02. Computation of Time Periods
	  	2426
	 SECTION 1.03. Accounting Terms
	  	2426
	 SECTION 1.04. Other Interpretive Provisions
	  	2427
		
	 ARTICLE II AMOUNTS AND TERMS OF THE TERM LOAN
LOANS
	  	2527
	 SECTION 2.01. The Term Loan
	  	2527
	 SECTION 2.02. Reserved
Line of Credit Loan Proposals
	  	2527
	 SECTION 2.03. Reserved
Line of Credit Lender Confirmations; Line of Credit Loans
	  	2528
	 SECTION 2.04. Reserved
Notes
	  	2528
	 SECTION 2.05. Fees
	  	2529
	 SECTION 2.06. Reserved
	  	2529
	 SECTION 2.07. Repayment of Term Loan
Loans
	  	2529
	 SECTION 2.08. Interest
	  	2629
	 SECTION 2.09. Interest Rate Determination
	  	2730
	 SECTION 2.10. Optional Conversion of Term Loan Borrowings
	  	2731
	 SECTION 2.11. Optional and Mandatory Prepayments of Term Loan.
	  	2731
	 SECTION 2.12. Increased Costs
	  	2832
	 SECTION 2.13. Illegality
	  	2933
	 SECTION 2.14. Payments and Computations
	  	2933
	 SECTION 2.15. Taxes
	  	3034
	 SECTION 2.16. Sharing of Payments, Etc.
	  	3337
	 SECTION 2.17. Use of Proceeds of the Term Loan
Loans
	  	3337
	 SECTION 2.18. Extension of Loans
	  	3337
	 SECTION 2.19. Incremental Term Loans
	  	3439
		
	 ARTICLE III RESERVED
	  	3640
		
	 ARTICLE IV CONDITIONS TO EFFECTIVENESS
	  	3640
		
	 SECTION 4.01. Conditions Precedent to Effectiveness
	  	3640
	 SECTION 4.02. Conditions Precedent to Each Extension of Credit
	  	3741
		
	 ARTICLE V REPRESENTATIONS AND WARRANTIES
	  	3842
		
	 SECTION 5.01. Representations and Warranties of the Borrowers
	  	3842
		
	 ARTICLE VI COVENANTS
	  	4146
		
	 SECTION 6.01. Affirmative Covenants
	  	4146
	 SECTION 6.02. Negative Covenants
	  	4751
	 SECTION 6.03. Financial Covenant
	  	5156

  
 i 

					
	 ARTICLE VII EVENTS OF DEFAULT
	  	 	5156	 
		
	 SECTION 7.01. Events of Default
	  	 	5156	 
		
	 ARTICLE VIII THE AGENT
	  	 	5358	 
		
	 SECTION 8.01. Appointment
	  	 	5358	 
	 SECTION 8.02. Delegation of Duties
	  	 	5458	 
	 SECTION 8.03. Exculpatory Provisions
	  	 	5458	 
	 SECTION 8.04. Reliance by Agent
	  	 	5459	 
	 SECTION 8.05. Notice of Default
	  	 	5459	 
	 SECTION 8.06. Non-Reliance on Agents and Other Lenders
	  	 	5459	 
	 SECTION 8.07. Reports and Financial Statements
	  	 	5559	 
	 SECTION 8.08. Indemnification
	  	 	5560	 
	 SECTION 8.09. Agent in Its Individual Capacity
	  	 	5660	 
	 SECTION 8.10. Successor Agent
	  	 	5660	 
	 SECTION 8.11. Reserved
	  	 	5661	 
	 SECTION 8.12. Defaulting Lenders
	  	 	5661	 
		
	 ARTICLE IX MISCELLANEOUS
	  	 	5762	 
		
	 SECTION 9.01. Amendments, Etc.
	  	 	5762	 
	 SECTION 9.02. Notices, Etc.
	  	 	5762	 
	 SECTION 9.03. No Waiver; Remedies
	  	 	5863	 
	 SECTION 9.04. Costs and Expenses
	  	 	5863	 
	 SECTION 9.05. Right of Set-off
	  	 	5964	 
	 SECTION 9.06. Binding Effect; Effectiveness
	  	 	6065	 
	 SECTION 9.07. Assignments and Participations
	  	 	6065	 
	 SECTION 9.08. Confidentiality
	  	 	6267	 
	 SECTION 9.09. Governing Law
	  	 	6267	 
	 SECTION 9.10. Execution in Counterparts
	  	 	6267	 
	 SECTION 9.11. Jurisdiction, Etc.
	  	 	6267	 
	 SECTION 9.12. WAIVER OF JURY TRIAL
	  	 	6368	 
	 SECTION 9.13. Release of Collateral or Guarantee Obligation
	  	 	6368	 
	 SECTION 9.14. PATRIOT Act Notice
	  	 	6368	 
	 SECTION 9.15. Integration
	  	 	6368	 
	 SECTION 9.16. Replacement of Lenders
	  	 	6368	 
	 SECTION 9.17. No Advisory or Fiduciary Capacity
	  	 	6469	 
		
	 ARTICLE X GUARANTEE
	  	 	6470	 
		
	 SECTION 10.01. Guarantee
	  	 	6470	 
	 SECTION 10.02. Right of Contribution
	  	 	6570	 
	 SECTION 10.03. No Subrogation
	  	 	6570	 
	 SECTION 10.04. Amendments, etc. with Respect to Obligations
	  	 	6671	 
	 SECTION 10.05. Guarantee Absolute and Unconditional
	  	 	6671	 
	 SECTION 10.06. Reinstatement
	  	 	6772	 
	 SECTION 10.07. Payments
	  	 	6772	 
	 SECTION 10.08. Additional Guarantors
	  	 	6772	 
	 SECTION 10.09. Releases
	  	 	6772	 
	 SECTION 10.10. Additional Line of
Credit Lenders
	  	 	72	 

  
 ii 

 SCHEDULES 
  

			
	Schedule 1.01	  	Lenders; CommitmentsReserved
		
	Schedule 5.01(n)	  	Pension Plan Issues
		
	Schedule 5.01(p)	  	UCC Filing Jurisdictions
		
	Schedule 5.01(s)	  	Existing Rights to Purchase Equity Interests
		
	Schedule 5.01(t)	  	Labor Matters
		
	Schedule 6.01(j)	  	Financial and Collateral Reports
		
	Schedule 6.02(d)	  	Restricted Payments
		
	Schedule 6.02(k)(ii)	  	Investment Policy

 EXHIBITS 
  

			
	Exhibit A	  	Reserved
		
	Exhibit B	  	Form of Assignment and Acceptance
		
	Exhibit C	  	Reserved
		
	Exhibit D	  	Reserved
		
	Exhibit E	  	Reserved
		
	Exhibit F	  	Reserved
		
	Exhibit G	  	Reserved
		
	Exhibit H	  	Reserved
		
	Exhibit I	  	Form of Compliance Certificate
		
	Exhibit J	  	Form of Joinder Agreement
		
	Exhibit K	  	Form of Line of Credit Lender Joinder Agreement
		
	Exhibit L	  	Form of Line of Credit Loan Proposal

  
 iii 

 SECOND LIEN CREDIT AGREEMENT (this “Agreement”) dated as of September 1,
2016, as amended on July 7, 2017 (the “First Amendment Effective Date”), among SEARS HOLDINGS CORPORATION, a Delaware corporation (“Holdings”), SEARS ROEBUCK
ACCEPTANCE CORP., a Delaware corporation (“SRAC”), KMART CORPORATION, a Michigan corporation (“Kmart Corp.”), the guarantors listed on the signature pages
hereto or pursuant to any joinder hereto as provided in Sections 6.01(i) and 10.08, the banks, financial institutions and other institutional lenders listed on the signature pages hereof or pursuant to any joinder hereto
as provided in Section 10.10 or through an assignment as provided in Section 9.07 hereof as Term Lenders,
and JPP, LLC, a Delaware limited liability company, as administrative agent and collateral administrator (the “Agent”). 

W I T N E S S E T H: 

WHEREAS, Holdings, SRAC, Kmart Corp., certain lenders, Wells Fargo Bank, National Association, f/k/a Wells Fargo Retail Finance, LLC. and
General Electric Capital Corporation, as co-collateral agents and co-syndication agents, JPMorgan Chase Bank, N.A. and Barclays Bank PLC, as documentation agents, Merrill Lynch, Pierce, Fenner & Smith Incorporated f/k/a Banc of America
Securities LLC, Wells Fargo Retail Finance, LLC and GE Capital Markets, Inc. as joint lead arrangers and joint bookrunners, and the First Lien Agent (as defined below), are party to the First Lien Credit Agreement (as defined below); and 

WHEREAS, the Borrowers have requested that the Term Lenders make term loans to the
Borrowers on the terms and subject to the conditions set forth in this Agreement and may request that the Line of Credit Lenders make loans to the Borrowers from time to time, as contemplated
herein. 
 NOW, THEREFORE, in consideration of the mutual conditions and agreements set forth in this Agreement, and for good and
valuable consideration, the receipt of which is hereby acknowledged, the undersigned hereby agree as follows: 
 ARTICLE I 

DEFINITIONS AND ACCOUNTING TERMS 

SECTION 1.01. Certain Defined Terms. As used in this Agreement, the following terms shall have the following meanings (such meanings to
be equally applicable to both the singular and plural forms of the terms defined): 
 “Accelerated Borrowing Base
Delivery Event” means either (i) the occurrence and continuance of any Event of Default, or (ii) the failure of the Borrowers for three (3) days (whether or not consecutive) during any thirty (30) day period to maintain
Capped Excess Availability equal to at least 15% of the Line Cap. For purposes of this Agreement, the occurrence of an Accelerated Borrowing Base Delivery Event shall be deemed continuing at the Agent’s option (x) so long as such Event of
Default shall be continuing, and/or (y) if the Accelerated Borrowing Base Delivery Event arises as a result of the Borrowers’ failure to maintain Capped Excess Availability as required hereunder, until Capped Excess Availability has
exceeded 15% of the Line Cap for thirty (30) consecutive calendar days, in which case an Accelerated Borrowing Base Delivery Event shall no longer be deemed to be continuing for purposes of this Agreement. The termination of an Accelerated
Borrowing Base Delivery Event as provided herein shall in no way limit, waive or delay the occurrence of a subsequent Accelerated Borrowing Base Delivery Event in the event that the conditions set forth in clauses (i) or (ii) hereof again
arise. 
 “ACH” means automated clearing house transfers. 

“Acquisition” means, with respect to any Person (a) a purchase of a controlling interest in, the equity
interests of any other Person, (b) a purchase or other acquisition of all or substantially all of the assets or properties of, another Person or of any business unit of another Person, or (c) any merger or consolidation of such Person with
any other Person or other transaction or series of transactions resulting in the acquisition of all or substantially all of the assets, or a controlling interest in the equity interests, of any Person, in each case in any transaction or group of
transactions which are part of a common plan. 

 “Additional Commitment Lender” has the meaning set forth in
Section 2.19(c). 
 “Additional Extending Lenders” has the meaning set forth in Section 2.18(c).

 “Additional First Lien Debt” means any Debt that is issued or guaranteed by a Borrower and/or any
Guarantor (other than the First Lien Credit Agreement Obligations) which Debt and guarantees are permitted to be issued hereunder and are secured by the Collateral (or a portion thereof) on a pari passu basis with the First Lien Credit Agreement
Obligations. The Borrowers may designate any such Debt to be Additional First Lien Debt by written notice to the Agent, provided such designation shall not result in the aggregate amount of Priority Obligations exceeding the amounts permitted
pursuant to Section 6.02 hereof. 
 “Additional First Lien Debt Documents” means, with respect to any
series, issue or class of Additional First Lien Debt, the promissory notes, loan agreements, indentures, or other operative agreements evidencing or governing such Indebtedness, in each case, as may be amended, restated, amended and restated,
modified, supplemented, replaced, extended, renewed and/or refinanced from time to time in accordance with the terms of this Agreement. 

“Additional First Lien Debt Obligations” means, with respect to any series, issue or class of Additional First
Lien Debt, all amounts owing pursuant to the terms of such Additional First Lien Debt, including, without limitation, the obligation (including guarantee obligations) to pay principal, interest, letter of credit commissions, reimbursement
obligations, charges, expenses, fees, attorneys costs, indemnities and other amounts. 
 “Adjusted Consolidated
EBITDA” means, for any period, Consolidated Net Income for such period plus (a) without duplication and to the extent deducted in determining Consolidated Net Income for such period, the sum of (i) Consolidated Interest
Expense for such period, (ii) income tax expense for such period, (iii) all amounts attributable to depreciation and amortization expense for such period, (iv) any items of loss resulting from the sale of assets other than in the
ordinary course of business for such period, (v) any non-cash charges for tangible or intangible impairments or asset write downs for such period (excluding any write downs or write-offs of Inventory other than write-downs or write-offs of
Inventory related to up to 100 store closings in any four consecutive fiscal quarters), and (vi) any other non-cash charges for such period (including non-cash charges arising from share-based payments to employees or directors, but excluding
(1) any non-cash charge already added back to Consolidated Net Income in the calculation of Adjusted Consolidated EBITDA in a prior period, (2) any non-cash charge that relates to the write-down or write-off of Inventory other than
write-downs or write-offs of Inventory related to up to 100 store closings in any four consecutive fiscal quarters, and (3) non-cash charges for which a cash payment is required to be made in that or any other period), minus
(b) without duplication and to the extent included in Consolidated Net Income for such period, (i) any items of gain resulting from the sale of assets other than in the ordinary course of business for such period, (ii) any cash
payments made during such period in respect of non-cash charges described in clause (a)(vi) taken in a prior period and (iii) any non-cash items of income for such period, all calculated on a Consolidated basis in accordance with GAAP
(excluding any non-cash income already deducted from Consolidated Net Income in the calculation of Adjusted Consolidated EBITDA in a prior period). For the purposes of calculating Adjusted Consolidated EBITDA in connection with any determination of
the Consolidated Leverage Ratio or Fixed Charge Ratio, (i) if at any time during the applicable four-quarter period, Holdings or any of its Subsidiaries shall have made any Material Disposition, the Adjusted Consolidated EBITDA for such fiscal
quarter shall be reduced by an amount equal to the Adjusted Consolidated EBITDA (if positive) attributable to the property that is the subject of such Material Disposition for such period or increased by an amount equal to the Adjusted Consolidated
EBITDA (if negative) attributable thereto for such fiscal period and (ii) if at any time during the applicable four-quarter period, Holdings or any of its Subsidiaries shall have made a Material Acquisition, Adjusted Consolidated EBITDA for
such period shall be calculated after giving pro forma effect thereto as if such Material Acquisition occurred on the first day of such period. As used in this definition, “Material Acquisition” means any acquisition of property or series
of related acquisitions of property that (a) constitutes assets comprising all or substantially all of an operating unit of a business or constitutes all or substantially all of the common 

  
 2 

 
stock of a Person and (b) involves the payment of consideration by Holdings and its Subsidiaries in excess of $100,000,000; and “Material Disposition” means any Disposition of
property or series of related Dispositions of property that yields gross proceeds to Holdings or any of its Subsidiaries in excess of $100,000,000. 

“Affiliate” means, as to any Person, any other Person that, directly or indirectly, controls, is controlled by
or is under common control with such Person or is a director or officer of such Person. For purposes of this definition, the term “control” (including the terms “controlling”, “controlled by” and “under common
control with”) of a Person means the possession, direct or indirect, of the power to direct or cause the direction of the management and policies of such Person by contract or otherwise. 

“Agent” has the meaning provided in the Preamble, or any successor thereto. For purposes of the Security
Agreement, the Agent shall be a “Pari Passu Agent”, as defined therein. 
 “Applicable Lending
Office” means, with respect to each Lender, such Lender’s Domestic Lending Office in the case of a Base Rate Advance, and such Lender’s Eurodollar Lending Office in the case of a Eurodollar Rate Advance. 

“Application of Disposition Proceeds” means, with respect to
any applicable Disposition, the application of the Net Proceeds thereof by Holdings and its Subsidiaries in the order set forth in the First Lien Credit Agreement. 

“Approved Fund” means any Fund that is administered or managed by (a) a Lender, (b) an Affiliate of
a Lender or (c) an entity or an Affiliate of an entity that administers or manages a Lender. 

“April 2016 Mortgage Debt” means the Debt owing by Sears and
certain other Subsidiaries of Holdings to JPP, LLC, JPP II, LLC and Cascade Investment, L.L.C., as lenders, pursuant to that certain $500,000,000 secured short-term loan facility dated as of April 8, 2016, as amended and restated on
May 22, 2017, and as may be further amended, restated, modified, supplemented, extended, renewed, refunded, replaced or refinanced from time to time. 

“Assignment and Acceptance” means an assignment and acceptance entered into by a Lender and an Eligible
Assignee, and accepted by the Agent, in substantially the form of Exhibit B hereto. 
 “Authorized
Officer” means, as to Holdings, any Borrower or any other Loan Party, its president, chief executive officer, chief financial officer, vice president and controller, vice president and treasurer, vice president, finance, executive vice
president, finance or any other person designated by it and acceptable to the Agent. Any document delivered hereunder that is signed by an Authorized Officer of a Loan Party shall be conclusively presumed to have been authorized by all necessary
corporate, partnership and/or other action on the part of such Loan Party and such Authorized Officer shall be conclusively presumed to have acted on behalf of such Loan Party. 

“Base Rate” means, for any day, a fluctuating rate per annum equal to the highest of (a) the Federal
Funds Rate plus one-half of one percent (0.50%), (b) the Eurodollar Rate (calculated utilizing a one-month Interest Period) plus one percent (1.00%), or (c) the rate of interest in effect for such day as publicly announced from time to
time by the First Lien Agent as its “prime rate.” Any change in such rate announced by the First Lien Agent shall take effect at the opening of business on the day specified in the public announcement of such change. 

“Base Rate Advance” means a Term Loan Borrowing that bears interest as provided in
2.08(b)(i)applicable. 
 “Borrower Information” has the meaning specified in
Section 9.08. 

  
 3 

 “Borrowers” means, collectively, SRAC and Kmart Corp.;
provided that in the event SRAC is dissolved, merged with and into Holdings or any Subsidiary of Holdings or otherwise ceases to exist in accordance with Section 6.01(d), then Holdings shall designate that Holdings or a direct wholly
owned Domestic Subsidiary of Holdings become a Borrower for all purposes of the Loan Documents. 

“Borrowing” means a borrowing consisting of simultaneous
Term Loans of the same Type made by each of the applicable Term Lenders pursuant to Section 2.01 or Section 2.03 provided that no more than ten (10) Interest
Periods in the aggregate for Term Loan Borrowings constituting Eurodollar Rate Advances may be outstanding at any time. 

“Borrowing Base” means, as of any date, the sum of (1) 90% of the book value (calculated in accordance
with GAAP) of the accounts receivable of the Loan Parties, on a consolidated basis, on such date and (2) 65% of the book value (calculated in accordance with GAAP) of the inventory of the Loan Parties, on a consolidated basis, on such date.

 “Borrowing Base Certificate” means a certificate, signed by an Authorized Officer of Holdings and in a
form reasonably acceptable to the Agent, setting forth the calculation of the Borrowing Base as of the relevant date. 

“Business Day” means a day of the year on which banks are not required or authorized by law to close in New
York, New York or Boston, Massachusetts or, in the case of matters relating to SRAC, Greenville, Delaware or, in the case of matters relating to Kmart Corp., Detroit, Michigan, and, if the applicable Business Day relates to any Eurodollar Rate
Advances, a day of the year on which dealings are carried on in the London interbank market. 
 “Capital
Expenditures” means, with respect to any Person for any period, all cash expenditures made or costs incurred for the acquisition or improvement of fixed or capital assets of such Person, in each case that are (or should be) set forth as
capital expenditures in a consolidated statement of cash flows of such Person for such period, in each case prepared in accordance with GAAP. 

“Capital Lease Obligations” means, with respect to any Person for any period, the obligations of such Person
to pay rent or other amounts under any lease of (or other arrangement conveying the right to use) real or personal property, or a combination thereof, which obligations are required to be classified and accounted for as liabilities on a balance
sheet of such Person under GAAP and the amount of which obligations shall be the capitalized amount thereof determined in accordance with GAAP. 

“Capped Excess Availability” means, at any time, “Capped Excess Availability” as defined in the
First Lien Credit Agreement (or analogous term in any successor agreement). 
 “Cash Equivalents” means
investments of Holdings and its Subsidiaries recorded as cash or cash equivalents in accordance with GAAP. 

“Class” means (a) the class consisting of Term Lenders, (b) any class of Extending Lenders and, if
applicable, Additional Extending Lenders having a Commitment established pursuant to Section 2.18, and (c) any Class of Incremental Term Loans established pursuant to Section 2.19, as the context may require. For clarity, except as
expressly provided herein, each Term Lender shall have the same rights and obligations under this Agreement and the other Loan Documents. 

“Collateral” means all property of the Loan Parties, now owned or hereafter acquired, upon which a Lien
(excluding any license granted to the Collateral Agent (and deemed to be a Lien pursuant to the definition thereof) for the sole purpose of enabling the Collateral Agent to exercise rights and remedies with respect to Liens otherwise granted on the
Collateral) is purported to be created by any Security Document. 
 “Collateral Agent” has the meaning
provided in the Security Agreement. 

  
 4 

 “Collateral Coverage Certificate” means with respect to any
annual or quarterly financial statements provided pursuant to Section 6.01(j), a certificate signed by a financial officer of the Borrowers setting forth an accurate calculation of the Borrowing Base and the Total Extensions of Credit as of the
last day of the period covered by such annual or quarterly financial statements. 
 “Commitments” means,
collectively the Term Commitments, and if applicable, the Incremental Term Loan Commitments. 
 “Commonly Controlled
Entity” means an entity, whether or not incorporated, that is under common control with any Borrower within the meaning of Section 4001 of ERISA or is part of a group that includes any Borrower and that is treated as a single employer
under Section 414 of the Internal Revenue Code. 
 “Consolidated” refers to the consolidation of
accounts of Holdings and its Subsidiaries in accordance with GAAP and as presented on a GAAP basis. 
 “Consolidated
Interest Expense” means for any period for any Person, total interest expense of such Person (including that attributable to Capital Lease Obligations and other expenses classified as interest expense in accordance with GAAP) on a
Consolidated basis with respect to all outstanding Debt of such Person, as determined in accordance with GAAP. 

“Consolidated Leverage Ratio” means, as of any given day, the ratio of (a) Consolidated Total Debt on
such day to (b) Adjusted Consolidated EBITDA for the four immediately preceding fiscal quarters for which financial statements are available or were required to have been delivered pursuant to Section 6.01(j). 

“Consolidated Net Income” means, for any period, the consolidated net income (or loss) of Holdings and its
Subsidiaries, determined on a Consolidated basis in accordance with GAAP; provided that there shall be excluded (a) the income (or deficit) of any Person accrued prior to the date it becomes a Subsidiary of Holdings or is merged into or
consolidated with Holdings or any of its Subsidiaries, (b) the income (or deficit) of any Person (other than a Subsidiary of Holdings) in which Holdings or any of its Subsidiaries has an ownership interest, except to the extent that any such
income is actually received by Holdings or such Subsidiary in the form of dividends or similar distributions and (c) the undistributed earnings of any Subsidiary of Holdings (other than a Loan Party) to the extent that the declaration or
payment of dividends or similar distributions by such Subsidiary is not at the time permitted by the terms of any contractual obligation (other than under any Loan Document) or Requirement of Law applicable to such Subsidiary. 

“Consolidated Total Debt” means, at any date, the aggregate principal amount of all Debt of Holdings and its
Subsidiaries at such date, determined on a Consolidated basis in accordance with GAAP, but excluding (i) issued but not funded letters of credit, (ii) reimbursement obligations which are characterized as trade payables and are not overdue
with respect to trade letters of credit and (iii) contingent obligations. 
 “Convert”,
“Conversion” and “Converted” each refers to a conversion of a Term Loan Borrowing of one Type into a Term Loan Borrowing of the other Type, pursuant to Section 2.09 or 2.10. 

“Covenant Compliance Event” means “Capped Excess Availability” at any time is less than
$150,000,000. 
 “Credit Card Accounts Receivable” means each Account or Payment Intangible (each as defined
in the UCC) together with all income, payments and proceeds thereof, owed by a credit card payment processor or an issuer of credit cards to a Loan Party resulting from charges by a customer of a Loan Party on credit cards issued by such issuer in
connection with the sale of goods by a Loan Party or services performed by a Loan Party, in each case in the ordinary course of its business. 

  
 5 

 “Credit Card Program
Assets” means the Credit Card Program Documents, all rights or obligations arising thereunder (including, without limitation, royalty fees and other revenues payable to Holdings or any of its subsidiaries pursuant thereto), all related
Intellectual Property and such other assets as the Borrowers and the Collateral Agent may agree, but excluding, for the avoidance of doubt, Credit Card Accounts Receivable or any proceeds thereof. 

“Credit Card Program Documents” means the Program Agreement,
originally dated as of July 15, 2003, amended and restated as of November 3, 2003, and as further amended by the parties from time to time by and among Sears, Roebuck and Co., Sears Brands Business Unit Corporation (as successor in
interest to Sears Intellectual Property Management Company) and Citibank, N.A. (as successor in interest to Citibank (South Dakota), N.A., which was successor in interest to Citibank (USA), N.A.), and the other agreements entered into in connection
therewith.  
 “Credit Card Royalty Securitization”
means the securitization, subject to Section 6.01(h) hereof, of royalty fees and other revenues payable to Holdings or any of its subsidiaries pursuant to the Credit Card Program Documents, but excluding, for the avoidance of doubt, Credit Card
Accounts Receivable or any proceeds thereof; provided that the documents governing such securitization shall not provide, directly or indirectly, for recourse against any Loan Party by way of a guaranty or any other support arrangement other than
such limited recourse as is reasonable given market standards for transactions of a similar type, including in connection with any servicing or management of the assets subject thereto by any Loan Party. 

“Credit Card Royalty Securitization Subsidiary” means any
Subsidiary of Holdings that engages in no material activities other than the transactions contemplated by a Credit Card Royalty Securitization and activities reasonably related thereto, 

“Credit Party” or “Credit Parties” means (a) individually, (i) each Lender and its
Affiliates, (ii) the Agent, (iii) the Collateral Agent, and (iv) the successors and assigns of each of the foregoing, and (b) collectively, all of the foregoing. 

“DC” means any distribution center owned or leased and operated by any Loan Party. 

“Debt” of any Person means, without duplication, (a) all indebtedness of such Person for borrowed money
(excluding interest payable thereon unless such interest has been accrued and added to the principal amount of such indebtedness), (b) all obligations of such Person for the deferred purchase price of property or services (other than
(i) trade payables incurred in the ordinary course of such Person’s business and (ii) any such obligations which are due less than twelve months from the date of incurrence), (c) all obligations of such Person evidenced by notes,
bonds, debentures or other similar instruments (other than performance, surety and appeals bonds arising in the ordinary course of business and other than the endorsement of negotiable instruments for deposit or collection or similar transactions in
the ordinary course of business) or in respect of bankers’ acceptances or letters of credit, (d) all obligations of such Person created or arising under any conditional sale or other title retention agreement with respect to property
acquired by such Person (even though the rights and remedies of the seller or lender under such agreement in the event of default are limited to repossession or sale of such property), (e) all obligations of such Person as lessee under leases
that have been or should be, in accordance with GAAP, recorded as capital leases, (f) all direct recourse payment obligations of such Person in respect of any accounts receivable sold by such Person, (g) all Debt of others referred to in
clauses (a) through (f) above or clause (h) below and other payment obligations guaranteed directly or indirectly in any manner by such Person, or in effect guaranteed directly or indirectly by such Person through an agreement
(1) to pay or purchase such Debt or to advance or supply funds for the payment or purchase of such Debt, (2) to purchase, sell or lease (as lessee or lessor) property, or to purchase or sell services, primarily for the purpose of enabling
the debtor to make payment of such Debt or to assure the holder of such Debt against loss, (3) to supply funds to or in any other manner invest in the debtor (including any agreement to pay for property or services irrespective of whether such
property is received or such services are rendered) or (4) otherwise to assure a creditor against loss, and (h) all Debt referred to in clauses (a) through (g) above secured by (or for which the holder of such Debt has an
existing right, contingent or otherwise, to be secured by) any Lien on property (including accounts and contract rights) owned by such Person, even though such Person has not assumed or become liable for the payment of such Debt. 

  
 6 

 “Debtor Relief Laws” means the Bankruptcy Code of the United
States, and all other liquidation, conservatorship, bankruptcy, assignment for the benefit of creditors, moratorium, rearrangement, receivership, insolvency, reorganization, or similar debtor relief Laws of the United States or other applicable
jurisdictions from time to time in effect and affecting the rights of creditors generally. 
 “Default”
means any Event of Default or any event that would constitute an Event of Default but for the requirement that notice be given or time elapse or both. 

“Defaulting Lender” means any Lender (as reasonably determined by the Agent) that
(a) (i) in the case of Term Lenders, has failed to fund any portion of its obligations required to be funded by it hereunder within three Business Days of the date required to be
funded by it hereunder and (ii) in the case of Line of Credit Lenders, has failed to fund any portion of its obligations required to be funded by it hereunder within three Business Days of
the applicable date Line of Credit Loan Date, (b) has otherwise failed to pay over to the Agent or any other Lender any other amount required to be paid by it hereunder within three Business Days of the date when due, (c) has failed,
within three Business Days after request by the Agent, to confirm that it will comply with the terms of this Agreement relating to its Commitments, provided that such Lender shall cease to be a Defaulting Lender under this clause
(c) upon the Agent’s receipt of such confirmation, (d) has notified the Borrower or the Agent in writing that it does not intend to comply with its funding obligations hereunder, or has made a public statement to that effect, or
(e) has, or has a direct or indirect parent company that has, (i) become the subject of a proceeding under any Debtor Relief Law, or (ii) had appointed for it a receiver, custodian, conservator, trustee, administrator, assignee for
the benefit of creditors or similar Person charged with reorganization or liquidation of its business or assets, including the Federal Deposit Insurance Corporation or any other state or federal regulatory authority acting in such a capacity;
provided that a Lender shall not be a Defaulting Lender solely by virtue of the ownership or acquisition of any equity interest in that Lender or any direct or indirect parent company thereof by a Governmental Authority so long as such
ownership interest does not result in or provide such Lender with immunity from the jurisdiction of courts within the United States or from the enforcement of judgments or writs of attachment on its assets or permit such Lender (or such Governmental
Authority) to reject, repudiate, disavow or disaffirm any contracts or agreements made with such Lender. 

“Disposition” means any sale, transfer, license, lease or other disposition (including any sale and leaseback
transaction), whether in one transaction or in a series of transactions, of any property (including, without limitation, any equity interests). 

“Dollars” and “$” refers to lawful money of the United States. 

“Domestic Lending Office” means, with respect to any Lender, the office of such Lender specified as its
“Domestic Lending Office” on the signature pages hereof or in the Assignment and Acceptance pursuant to which it became a Lender, or such other office of such Lender as such Lender may from time to time specify to the Borrowers and the
Agent. 
 “Domestic Subsidiary” means any Subsidiary organized under the laws of the United States of
America, any State thereof or the District of Columbia (excluding, for the avoidance of doubt, any Subsidiary organized under the laws of Puerto Rico). 

“Effective Date” means the first date on which the conditions set forth in Section 4.01 are
satisfied (or waived in accordance with Section 9.01), such date being September 1, 2016. 

“Eligible Assignee” means (a) a commercial bank or any other Person engaged in the business of making
asset based or commercial loans, or any fund or other Person (other than a natural Person) that invests in loans, which bank, Person or fund, together with its Affiliates, has a combined capital and surplus in excess

  
 7 

 
of $300,000,000 and which bank, Person or fund is approved by the Agent, and, unless an Event of Default has occurred and is continuing at the time any assignment is effected in accordance with
Section 9.07, the Borrowers, in each case such approval not to be unreasonably withheld or delayed, (b) an existing Lender or an Affiliate of an existing Lender or an Approved Fund, or (c) any Permitted Holder; provided that
neither the Borrowers nor an Affiliate of the Borrowers (other than a Permitted Holder) shall qualify as an Eligible Assignee. 

“Environmental Action” means any action, suit, demand, demand letter, claim, notice of non-compliance or
violation, notice of liability or potential liability, investigation, proceeding, consent order or consent agreement relating in any way to any Environmental Law, Environmental Permit or Hazardous Materials or arising from alleged injury or threat
of injury to health, safety or the environment, including (a) by any governmental or regulatory authority for enforcement, cleanup, removal, response, remedial or other actions or damages and (b) by any governmental or regulatory authority
or any third party for damages, contribution, indemnification, cost recovery, compensation or injunctive relief. 

“Environmental Law” means any federal, state, local or foreign statute, law, ordinance, rule, regulation,
code, order, judgment, decree or judicial or agency interpretation, policy or guidance relating to pollution or protection of the environment, health, safety or natural resources, including those relating to the use, handling, transportation,
treatment, storage, disposal, release or discharge of Hazardous Materials. 
 “Environmental Liability”
means any liability, contingent or otherwise (including any liability for damages, costs of environmental remediation, fines, penalties or indemnities), of Holdings, the Borrowers, or any of their Subsidiaries directly or indirectly resulting from
or based upon (a) violation of any Environmental Law, (b) the generation, use, handling, transportation, storage, treatment or disposal of any Hazardous Materials, (c) exposure to any Hazardous Materials, (d) the release or
threatened release of any Hazardous Materials into the environment or (e) any contract, agreement or other consensual arrangement pursuant to which liability is assumed or imposed with respect to any of the foregoing. 

“Environmental Permit” means any permit, approval, identification number, license or other authorization
required under any Environmental Law. 
 “ERISA” means the Employee Retirement Income Security Act of 1974,
as amended from time to time, and the regulations promulgated and issued thereunder. 
 “ERISA Affiliate”
means any Person that for purposes of Title IV of ERISA is a member of any Borrower’s controlled group, or under common control with such Borrower, within the meaning of Section 414 of the Internal Revenue Code. 

“ERISA Event” means (a) (i) the occurrence of a Reportable Event, as defined herein, or
(ii) the requirements of subsection (1) of Section 4043(b) of ERISA (without regard to Section 4043(b)(2)) are met with respect to a contributing sponsor, as defined in Section 4001(a)(13) of ERISA, of a Plan, and an event
described in paragraph (9), (10), (11), (12) or (13) of Section 4043(c) of ERISA is reasonably expected to occur with respect to such Plan within the following 30 days; (b) the application for a minimum funding waiver with
respect to a Plan; (c) the provision by the administrator of any Plan of a notice of intent to terminate such Plan pursuant to Section 4041(a)(2) of ERISA (including any such notice with respect to a plan amendment referred to in
Section 4041(e) of ERISA); (d) the cessation of operations at a facility of any Borrower or any ERISA Affiliate in the circumstances described in Section 4062(e) of ERISA; (e) the withdrawal by any Borrower or any ERISA Affiliate
from a Multiple Employer Plan during a plan year for which it was a substantial employer, as defined in Section 4001(a)(2) of ERISA; (f) the conditions for the imposition of a lien under Sections 303(k) or 4068(a) of ERISA shall have been
met with respect to any Plan; (g) the institution by the PBGC of proceedings to terminate a Plan pursuant to Section 4042 of ERISA, or the occurrence of any event or condition described in Section 4042 of ERISA that constitutes
grounds for the termination of, or the appointment of a trustee to administer, a Plan, or (h) the Borrowers or any ERISA Affiliate incur liabilities under Section 4069 of ERISA. 

  
 8 

 “Eurocurrency Liabilities” has the meaning assigned to that term
in Regulation D of the Board of Governors of the Federal Reserve System, as in effect from time to time. 

“Eurodollar Lending Office” means, with respect to any Lender, the office of such Lender specified as its
“Eurodollar Lending Office” on the signature pages hereof or in the Assignment and Acceptance pursuant to which it became a Lender (or, if no such office is specified, its Domestic Lending Office), or such other office of such Lender as
such Lender may from time to time specify to the Borrowers and the Agent. 
 “Eurodollar Rate” means, 

(a) for any Interest Period with respect to a Eurodollar Rate Advance, the rate per annum (which shall in no event be less than
zero) equal to the London interbank offered rate administered by ICE Benchmark Administration Limited (“ICE LIBOR”), as published by Reuters (or other commercially available source providing quotations of ICE LIBOR as designated by the
First Lien Agent from time to time) at approximately 11:00 a.m., London time, two Business Days prior to the commencement of such Interest Period, for Dollar deposits (for delivery on the first day of such Interest Period) with a term equivalent to
such Interest Period. If such rate is not available at such time for any reason, then the “Eurodollar Rate” for such Interest Period shall be the rate per annum determined by the Agent (which shall in no event be less than zero) to be the
rate at which deposits in Dollars for delivery on the first day of such Interest Period in same day funds in the approximate amount of the Eurodollar Rate Advance being made, continued or converted and with a term equivalent to such Interest Period
would be offered by Bank of America’s London Branch to major banks in the London interbank eurodollar market at their request at approximately 11:00 a.m. (London time) two Business Days prior to the commencement of such Interest Period;
and 
 (b) for any interest calculation with respect to a Base Rate Advance on any date, the rate per annum (which
shall in no event be less than zero) equal to (i) ICE LIBOR, at approximately 11:00 a.m., London time determined two London Banking Days prior to such date for Dollar deposits being delivered in the London interbank market for a term of one
month commencing that day or (ii) if such published rate is not available at such time for any reason, the rate per annum determined by the First Lien Agent (which shall in no event be less than zero) to be the rate at which deposits in Dollars
for delivery on the date of determination in same day funds in the approximate amount of the Base Rate Advance being made or maintained and with a term equal to one month would be offered by Bank of America’s London Branch to major banks in the
London interbank Eurodollar market at their request at the date and time of determination; and 

(c) for any Eurodollar Rate Line of Credit Loan, the rate per annum set
forth in the applicable Line of Credit Loan Proposal. 
 “Eurodollar Rate Advance” means any Term Loan
Borrowing that bears interest as provided in Section 2.08(b)(ii). 

“Eurodollar Rate Line of Credit Loan” means any Line of
Credit Loan that bears interest as provided in Section 2.08(a)(ii). 
 “Eurodollar Rate Reserve
Percentage” for any Interest Period for a Eurodollar Rate Advance by any Lender means the reserve percentage applicable to such Lender two Business Days before the first day of such Interest Period under regulations issued from time to time
by the Board of Governors of the Federal Reserve System (or any successor) for determining the minimum reserve requirement (including any emergency, supplemental or other marginal reserve requirement) with respect to liabilities or assets consisting
of or including Eurocurrency Liabilities (or with respect to any other category of liabilities that includes deposits by reference to which the interest rate on Eurodollar Rate Advances is determined) having a term equal to such Interest Period.

 “Events of Default” has the meaning specified in Section 7.01. 

  
 9 

 “Excess Cash Flow” means, for any fiscal year of Holdings, the
excess of (a) the sum, without duplication, of (i) Consolidated Net Income for such fiscal year (excluding gains and losses from the sale of assets or businesses outside the ordinary course of business included in the calculation of such
Consolidated Net Income), plus (ii) expenses reducing Consolidated Net Income incurred or made with respect to any Plan, plus (iii) depreciation, amortization and other non-cash charges reducing Consolidated Net Income (excluding any
non-cash charges to the extent they represent an accrual or reserve for potential cash charges in any future period or amortization of a prepaid cash gain that was paid in a prior period and excluding any such charges which were excluded in the
calculation of Consolidated Net Income as set forth in clause (a)(i) above), minus (b) the sum, without duplication, of (i) contributions made in cash to any Plan, plus (ii) non-cash gains and other non-cash items increasing
Consolidated Net Income (other than any such gains and items which were excluded in the calculation of Consolidated Net Income as set forth in clause (a)(i) above), plus (iii) the amount of scheduled payments and mandatory prepayments of
principal, interest, fees, premiums and make whole or prepayment payments on account of Debt for borrowed money made in cash (excluding any repayments of Obligations hereunder and of prepayments of any revolving credit facility unless there is an
equivalent permanent reduction in the commitments thereunder and excluding any such payments or prepayments to the extent financed with the proceeds of Debt), and scheduled payments and mandatory prepayments of Capital Lease Obligations (excluding
any interest expense portion thereof deducted in the calculation of Consolidated Net Income and excluding any such payments or prepayments to the extent financed with the proceeds of Debt), plus (iv) the amount of optional prepayments of
principal on account of Priority Obligations or the Term Loan made in cash during such fiscal year (as a result of which, in the case of repayments under any revolving credit facility, the revolving credit commitments have been permanently reduced
correspondingly), except to the extent that such prepayments are funded with Debt, plus (v) Capital Expenditures made in cash during such fiscal year, except to the extent financed with the proceeds of Debt, plus (vi) the amount of
Permitted Acquisitions and Permitted Investments (pursuant to clauses (d), (i), (o), (q) and (r) of the definition thereof) made in cash during such fiscal year, except to the extent financed with the proceeds of Debt. 

“Excluded Taxes” means any of the following Taxes imposed on or with respect to any Recipient or required to
be withheld or deducted from a payment to a Recipient, (a) Taxes imposed on or measured by net income (however denominated and including any Taxes imposed in lieu of income Taxes), franchise Taxes, and branch profits Taxes, in each case,
(i) imposed as a result of such Recipient being organized under the laws of, or having its principal office or, in the case of any Lender, its Applicable Lending Office located in, the jurisdiction imposing such Tax (or any political
subdivision thereof) or (ii) that are Other Connection Taxes, (b) U.S. federal withholding Taxes imposed on amounts payable to or for the account of such Recipient with respect to an applicable interest in any Extension of Credit or
Commitment pursuant to a law in effect on the date on which (i) such Recipient acquires such interest in such Extension of Credit or Commitment (other than pursuant to an assignment request by the Borrower under Section 9.16) or
(ii) in the case of a Lender, such Lender changes its Applicable Lending Office, except in each case to the extent that, pursuant to Section 2.15, amounts with respect to such Taxes were payable either to such Lender’s assignor
immediately before such Lender became a party hereto or to such Lender immediately before it changed its Applicable Lending Office, (c) Taxes attributable to such Recipient’s failure to comply with Section 2.15(e) or
(f) and (d) any U.S. federal withholding Taxes imposed pursuant to FATCA. 
 “Existing Intercreditor
Agreement” means that certain Amended and Restated Intercreditor Agreement, dated as of the date hereof,September 1, 2016, by and among the First Lien Agent, the
Collateral Agent, their permitted successors and assigns, and the other parties thereto from time to time. 

“Existing Second Lien Notes” means the 6 5⁄8% Senior Secured Notes due 2018 of Holdings outstanding as of the Effective Date. 

“Extended Term Loans” has the meaning set forth in Section 2.18(a). 

“Extending Lenders” has the meaning set forth in Section 2.18(b). 

  
 10 

 “Extension Amendment” has the meaning set forth in
Section 2.18(d). 
 “Extension Election” has the meaning set forth in Section 2.18(b). 

“Extension Request” has the meaning specified in Section 2.18(b). 

“Extensions of Credit” means as to (i) any
Term Lender at any time, an amount equal to the sum of (the outstanding principal amount of the Term Loans held by such
LenderTerm Lender and (ii) any Line of Credit Lender, the aggregate principal amount of all Line of Credit Loans held by such Line of Credit Lender then outstanding.

 “FATCA” means Sections 1471 through 1474 of the Code, as of
Thethe Effective Date (or any amended or successor version that is substantively comparable and not materially more onerous to comply with), any current or future
regulations or official interpretations thereof and any agreement entered into pursuant to Section 1471(b)(1) of the Code. 

“Federal Funds Rate” means, for any period, a fluctuating interest rate per annum equal for each day during
such period to the weighted average of the rates on overnight Federal funds transactions with members of the Federal Reserve System arranged by Federal funds brokers, as published for such day (or, if such day is not a Business Day, for the next
preceding Business Day) by the Federal Reserve Bank of New York, or, if such rate is not so published for any day that is a Business Day, the average of the quotations for such day on such transactions received by the Agent from three Federal funds
brokers of recognized standing reasonably selected by it. 

“First Amendment Effective Date” has the meaning provided in
the Preamble. 
 “First Lien Agent” means Bank of America, N.A., in its capacity as administrative agent
and collateral agent under the First Lien Credit Agreement Documents, or any successor administrative agent and collateral agent, including, if applicable, in respect of any other Priority Obligations. 

“First Lien Credit Agreement” means the Third Amended and Restated Credit Agreement, dated as of July 21,
2015 by and among Holdings, the Borrowers, the lenders party thereto in their capacities as lenders thereunder, the First Lien Agent, as agent and the other agents party thereto, as the same may be amended, restated, modified, supplemented,
extended, renewed, refunded, replaced or refinanced from time to time in one or more agreements (in each case with the same or new lenders, guarantors, institutional investors or agents), including any agreement extending the maturity thereof or
otherwise restructuring all or any portion of the Indebtedness thereunder or increasing the amount loaned or issued thereunder or altering the maturity thereof, in each case as and to the extent not prohibited by this Agreement. 

“First Lien Credit Agreement Documents” means the “Loan Documents” as defined in the First Lien
Credit Agreement. 
 “First Lien Credit Agreement Obligations” means all amounts owing pursuant to the First
Lien Credit Agreement and the First Lien Credit Documents, including, without limitation, the obligation (including guarantee obligations) to pay principal, interest, letter of credit commissions, reimbursement obligations, charges, expenses, fees,
attorneys costs, indemnities and other amounts, together with all obligations in respect of banking products and cash management services secured pursuant to the First Lien Credit Documents. 

“Fixed Charge Ratio” means, the ratio, determined as of the end of each fiscal month of the Borrowers for the
most recently ended twelve fiscal months, of (a) Adjusted Consolidated EBITDA minus the unfinanced portion of Capital Expenditures (but including Capital Expenditures financed with proceeds of the revolving facility under the First Lien
Credit Agreement) minus taxes paid in cash net of refunds (but in no event less than zero), to (b) Fixed Charges, all calculated on a Consolidated basis in accordance with GAAP. 

  
 11 

 “Fixed Charges” means, with reference to any period, without
duplication, Consolidated Interest Expense paid or payable in cash, plus scheduled principal payments on Debt made during such period, plus Capital Lease Obligation payments made during such period, all calculated on a Consolidated
basis. 
 “Fixed Rate Line of Credit Loan” means any Line
of Credit Loan that bears interest as provided in Section 2.08(a)(i). 
 “Fund” means any Person (other
than a natural person) that is (or will be) engaged in making, purchasing, holding or otherwise investing in commercial loans and similar extensions of credit in the ordinary course of its business. 

“GAAP” has the meaning specified in Section 1.03. 

“Governmental Authority” means any nation or government, any state or other political subdivision thereof, any
agency, authority, instrumentality, regulatory body, court, central bank or other entity exercising executive, legislative, judicial, taxing, regulatory or administrative functions of or pertaining to government, any securities exchange and any
self-regulatory organization (including the National Association of Insurance Commissioners). 
 “Group
Members” means, collectively, Holdings, the Borrowers and their respective Subsidiaries. 

“Guarantors” means, collectively, each Loan Party in its capacity as a guarantor pursuant to Article X. 

“Hazardous Materials” means (a) petroleum and petroleum products, byproducts or breakdown products,
radioactive materials, asbestos-containing materials, polychlorinated biphenyls and radon gas and (b) any other chemicals, materials or substances designated, classified or regulated as hazardous or toxic or as a pollutant or contaminant under
any Environmental Law. 
 “Holdings” has the meaning provided in the Preamble. 

“Incremental Effective Date” has the meaning provided in Section 2.19(e). 

“Incremental Term Lender” shall mean a Term Lender with an Incremental Term Loan Commitment or an outstanding
Incremental Term Loan. 
 “Incremental Term Loan Commitment” shall mean the commitment of any Term Lender,
established pursuant to Section 2.19, to make Incremental Term Loans. 
 “Incremental Term Loans” shall
mean Term Loans made by one or more Term Lenders to one or more of the Borrowers pursuant to Section 2.19. 

“Indemnified Taxes” means Taxes, other than Excluded Taxes, imposed on or with respect to any payment made by
or on account of any obligation of any Loan Party under any Loan Document. 
 “Insolvency” means with
respect to any Multiemployer Plan, the condition that such Plan is insolvent within the meaning of Section 4245 of ERISA. 

“Insolvent” means pertaining to a condition of Insolvency. 

“Intellectual Property” has the meaning given to such term in the Security Agreement. 

  
 12 

 “Interest Period” means, for each Eurodollar Rate Advance
comprising part of the same Term Loan Borrowing the period commencing on the date of such Eurodollar Rate Advance or the date of the Conversion of any Base Rate Advance into such Eurodollar Rate Advance and ending on the last day of the period
selected by the applicable Borrower pursuant to the provisions below and, thereafter, each subsequent period commencing on the last day of the immediately preceding Interest Period and ending on the last day of the period selected by the applicable
Borrower pursuant to the provisions below. The duration of each such Interest Period shall be one, two or three months, as the applicable Borrower may, upon notice received by the Agent not later than 12:00 noon on the third Business Day prior to
the first day of such Interest Period, select; provided, however, that: 
 (a) a Borrower may not select any
Interest Period with respect to a Term Loan Borrowing constituting a Eurodollar Rate Advance that ends after the Termination Date; 

(b) Interest Periods commencing on the same date for Eurodollar Rate Advances comprising part of the same Borrowing shall be of
the same duration; 
 (c) whenever the last day of any Interest Period would otherwise occur on a day other than a Business
Day, the last day of such Interest Period shall be extended to occur on the next succeeding Business Day, provided, however, that, if such extension would cause the last day of such Interest Period of one month or longer to occur in
the next following calendar month, the last day of such Interest Period shall occur on the next preceding Business Day; and 

(d) whenever the first day of any Interest Period occurs on a day of an initial calendar month for which there is no
numerically corresponding day in the calendar month that succeeds such initial calendar month by the number of months equal to the number of months in such Interest Period, such Interest Period shall end on the last Business Day of such succeeding
calendar month. 
 “Internal Revenue Code” means the Internal Revenue Code of 1986, as amended from time to
time, and the regulations promulgated and rulings issued thereunder. 
 “Inventory” as defined in the UCC.

 “Investment” means, as to any Person, any direct or indirect acquisition or investment by such Person,
whether by means of (a) the purchase or other acquisition of equity interests of another Person, (b) a loan, advance or capital contribution to, guarantee or assumption of debt of, or purchase or other acquisition of any other debt or
interest in, another Person, or (c) any Acquisition. 

“January 2017 Mortgage Debt” means the Debt owing by Sears
and certain other Subsidiaries of Holdings to JPP, LLC and JPP II, LLC, as lenders, pursuant to that certain $500,000,000 secured loan facility dated as of January 3, 2017, as the same may be amended, restated, modified, supplemented, extended,
renewed, refunded, replaced or refinanced from time to time. 
 “Kmart” means Kmart Holding Corporation,
a Delaware corporation. 
 “Kmart Corp.” has the meaning provided in the Preamble. 

“Lenders” means, collectively, the Term Lenders and
the Line of Credit Lenders. 
 “Lien” means any lien, security interest or other charge or encumbrance
of any kind or any other type of preferential arrangement, including the lien or retained security title of a conditional vendor, and any easement, right of way or other encumbrance on title to real property, but excluding consignments or bailments
of goods of third parties and the interests of lessors under operating leases. 
 “Line Cap” means the
“Line Cap” as defined in the First Lien Credit Agreement. 

  
 13 

 “Line of Credit
Issuance Period” means the period beginning on the First Amendment Effective Date and ending on, and including, June 30, 2020. 

“Line of Credit Lenders” means, collectively, each Person
party hereto as a Line of Credit Lender on the First Amendment Effective Date, each Person that shall become a party hereto as a Line of Credit Lender pursuant to Section 9.07 or 10.10 . 

“Line of Credit Loan” means, collectively each Eurodollar
Rate Line of Credit Loan and each Fixed Rate Line of Credit Loan made by the Line of Credit Lenders on or after the First Amendment Effective Date pursuant to Sections 2.02 and 2.03. 

“Line of Credit Loan Proposal” means each proposal delivered
to a Line of Credit Lender or prospective Line of Credit Lender substantially in the form of Exhibit L hereto with respect to a Line of Credit Loan pursuant to Section 2.02. 

“Loan(s)” shall meant the Term Loans, the Line of Credit
Loans or any of them, as the context may require. 
 “Loan Documents” means this Agreement, the Security
Documents, the Notes, each Borrowing Base Certificate, each Line of Credit Loan Proposal in respect of an outstanding Line of Credit Loan, any other document or instrument now or hereafter
designated by the Borrowers and the Agent as a “Loan Document” and any amendment, waiver, supplement or other modification to any of the foregoing. 

“Loan Parties” means each Group Member that is a party to a Loan Document. 

“Material Adverse Effect” means a material adverse effect on (a) the business, condition (financial or
otherwise), operations or assets of Holdings and its Subsidiaries taken as a whole, or (b) the ability of the Loan Parties taken as a whole to perform their material obligations under the Loan Documents or (c) the validity or
enforceability of the Loan Documents taken as a whole or the rights and remedies of the Agent, the Collateral Agent or the Lenders thereunder taken as a whole (including, but not limited to, the enforceability or priority of any Liens granted to the
Collateral Agent under the Loan Documents). 
 “Material Subsidiary Guarantor” means a Subsidiary Guarantor
that, at the time of determination, accounts for more than 2% of both the total assets and total revenues of Holdings on a consolidated basis (and, together with all other Material Subsidiary Guarantors accounts for more than 5% of both the total
assets and total revenues of Holdings on a consolidated basis). 
 “Multiemployer Plan” means a
multiemployer plan, as defined in Section 4001(a)(3) of ERISA, to which Holdings or any ERISA Affiliate is making or accruing an obligation to make contributions, or has within any of the preceding five plan years made or accrued an obligation
to make contributions. 
 “Multiple Employer Plan” means a single employer plan, as defined in
Section 4001(a)(15) of ERISA, that (a) is maintained for employees of Holdings or any ERISA Affiliate and at least one Person other than Holdings and the ERISA Affiliates or (b) was so maintained and in respect of which Holdings or
any ERISA Affiliate could have liability under Section 4064 or 4069 of ERISA in the event such plan has been or were to be terminated. 

“Net Proceeds” means, (a) with respect to any Disposition by any Loan Party or any of its Subsidiaries of
any property or any casualty or condemnation of such property, the excess, if any, of (i) the sum of cash and cash equivalents received in such transaction (including any cash or cash equivalents received by way of deferred payment pursuant to,
or by monetization of, a note receivable or otherwise, but only as and when so received) over (ii) the sum of (A) the principal amount of any Debt (other than Debt owed to Holdings or
any of its Subsidiaries, the payment of which in connection with any Permitted Disposition or other transaction shall not, for the avoidance of doubt, be deemed to reduce the amount of Net  

  
 14 

 
Proceeds for any purposes under this Agreement) that is secured by the applicable asset by a Lien permitted hereunder which is senior
to the Collateral Agent’s Lien, if any, on such asset and that is required, and permitted under this Agreement, to be repaid (or to establish an escrow for the future repayment
thereof) in connection with such transaction (other than Debt under the Loan Documents), (B) the reasonable and customary out-of-pocket expenses incurred by such Loan Party or such Subsidiary in connection with such transaction
(including, without limitation, reasonable and customary attorneys’ fees, accountants’ fees, investment banking fees, appraisals, and brokerage, legal, title and recording or transfer tax expenses and commissions) paid by any Loan Party
or any of its Subsidiaries to third parties (other than Affiliates), (C) transfer Taxes paid as a result thereof and
(D) amounts paid by any Loan Party or any of its Subsidiaries in order to obtain consents required from any third parties (other than Affiliates) to consummate such transaction, and (b) the excess of (i) the sum of the cash and
cash equivalents received in connection with the issuance of any equity interests of any Loan Party or any Permitted Refinancing Debt over (ii) the underwriting discounts and commissions, and other reasonable and customary out-of-pocket
expenses, incurred by such Loan Party in connection therewith. 
 “Non-Consenting Lender” has the meaning
specified in Section 9.16. 
 “Non-Defaulting Lender” means, at any time, each Lender that is not a
Defaulting Lender at such time. 
 “Note” means a promissory note of any Borrower payable to the order of
any Lender evidencing the Term CommitmentLoans of such Lender or the Line of Credit Loans of such Lender. 

“Obligations” means all amounts owing pursuant to this Agreement and the other Loan
Documents,, including, without limitation, the obligation (including guarantee obligations) to pay principal, interest, charges, expenses, fees, attorneys costs, indemnities and other
amounts, whether in respect of Term Loans, Line of Credit Loans or otherwise. 

“Other Connection Taxes” means, with respect to any Recipient, Taxes imposed as a result of a present or
former connection between such Recipient and the jurisdiction imposing such Tax (other than connections arising solely from such Recipient having executed, delivered, become a party to, performed its obligations under, received payments under,
received or perfected a security interest under, engaged in any other transaction pursuant to or enforced any Loan Document, or sold or assigned an interest in any Extension of Credit or Loan Document pursuant to an assignment request by the
Borrowers under Section 9.16). 
 “Other Taxes” has the meaning specified in Section 2.15. 

“PACA” means the Perishable Agricultural Commodities Act of 1930, as amended. 

“PASA” means the Packers and Stockyards Act of 1921, as amended. 

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

“PBGC” means the Pension Benefit Guaranty Corporation (or any successor). 

“Pension Plan” means any “employee pension benefit plan” (as such term is defined in
Section 3(2) of ERISA), other than a Multiemployer Plan, that is subject to Title IV of ERISA and is sponsored or maintained by Holdings or any ERISA Affiliate or to which Holdings or any ERISA Affiliate contributes or has an obligation to
contribute, or in the case of a multiple employer or other plan described in Section 4064(a) of ERISA, has made contributions at any time during the immediately preceding five plan years. 

  
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 “Perfection Certificate” means that certain perfection
certificate dated as of the Effective Date and delivered to the Agent with respect to the Borrowers and the other Loan Parties==. 

“Permitted Acquisition” means any Acquisition permitted under Section 6.02(c). 

“Permitted Debt” means each of the following as long as no Default or Event of Default exists at the time of
incurrence thereof or would arise from the incurrence thereof: 
 (a) Debt outstanding on the Effective Date (other than
obligations under the First Lien Credit Agreement); 
 (b) Debt of any Loan Party to any other Loan Party; 

(c) Debt of Holdings or any Subsidiary of Holdings which is not a Loan Party to any Loan Party; provided, that (1) such
Debt is incurred in the ordinary course of business consistent with past practices in connection with cash management, (2) such Debt shall not exceed $100,000,000 in the aggregate at any one time outstanding or (3) (i) at the time of
incurrence of any such Debt and immediately after giving pro forma effect thereto, no Default or Event of Default shall have occurred and be continuing, and (ii) after giving effect to any such Debt (A) the Pro Forma and Projected Capped
Excess Availability is at least 15% of the Line Cap, and (B) the Pro Forma Fixed Charge Ratio shall be at least 1.0 to 1.0; 

(d) Debt of any Group Member to any Subsidiary of Holdings which is not a Loan Party; 

(e) (i) purchase money Debt used to finance the acquisition of any fixed or capital assets, including Capital Lease
Obligations, and any Debt assumed in connection with the acquisition of any such assets or secured solely by a Lien on any such assets prior to the acquisition thereof, and (ii) Debt incurred in connection with sale-leaseback transactions with
respect to assets not constituting Collateral; 
 (f) Debt of any Person that becomes a Subsidiary in an Acquisition
permitted in accordance with Section 6.02(c), which Debt is existing at the time such Person becomes a Subsidiary (other than Debt incurred solely in contemplation of such Person’s becoming a Subsidiary); 

(g) the Obligations; 

(h) other Debt in an amount not to exceed $1,000,000,000 in the aggregate outstanding at any time; 

(i) Debt described in Section 6.02(a)(vi), provided, that such Debt (i) does not have a maturity date
which is earlier than the Termination Date in effect at the time of the incurrence of such Debt, (ii) is incurred on arm’s-length terms, (iii) [reserved], and (iv) the security documents, if any, with respect to such Debt are
reasonably satisfactory to the Agent in its Permitted Discretion; 
 (j) any other
Debt (including, without limitation, the January 2017 Mortgage Debt), provided, that such Debt (i) does not require the repayment of principal prior to the Termination
Date in effect at the time of the incurrence of such Debt in excess of 1.0% of the original principal amount thereof per annum (excluding, for the avoidance of doubt, repayments required as a result of the sale of assets and repayments required in
connection with an event that would constitute an Event of Default under Section 7.01(g) hereof) (ii) does not have a maturity date which is earlier than the Termination Date in effect at the time of the incurrence of such Debt, and
(iii) is incurred on arm’s-length terms; 
 (k) Debt of the type specified in clause (g) of the definition
thereof to the extent such Debt constitutes a Permitted Investment; 
 (l) Debt in respect of performance bonds, bid bonds,
appeal bonds, surety bonds and completion guarantees and similar obligations (including, in each case, letters of credit issued to provide such bonds, guaranties and similar obligations), in each case provided in the ordinary course of business,
including those incurred to secure health, safety and environmental obligations in the ordinary course of business; 

  
 16 

 (m) Debt arising from overdraft facilities and/or the honoring by a bank or other
financial institution of a check, draft or similar instrument drawn against insufficient funds in the ordinary course of business or other cash management services (including, but not limited to, intraday, ACH, credit cards, and purchasing
card/T&E services) in the ordinary course of business; provided, that (x) such Debt (other than credit cards or purchase cards) is extinguished within ten Business Days of notification to the applicable Loan Party of its incurrence
and (y) such Debt in respect of credit cards or purchase cards is extinguished within 60 days from its incurrence; 

(n) Debt arising from agreements of Holdings or any Subsidiary providing for indemnification, adjustment of purchase or
acquisition price or similar obligations, in each case, incurred or assumed in connection with any Permitted Acquisition or the disposition of any business, assets or any Subsidiary not prohibited by this Agreement, other than guarantees of Debt
incurred by any Person acquiring all or any portion of such business, assets or any Subsidiary for the purpose of financing such Acquisition; 

(o) Debt consisting of (i) the financing of insurance premiums or (ii) take or pay obligations contained in supply
arrangements, in each case, in the ordinary course of business; 
 (p) Debt on account of letters of credit issued for the
account of any Loan Party by any other Person; 
 (q) Debt arising
from a Credit Card Royalty Securitization in an amount not to exceed $500,000,000, so long as the Net Proceeds of such Credit Card Securitization received by Holdings or any Subsidiary are applied as permitted pursuant to
Section 6.02(j)(iii)(B) or, if elected by Borrowers or with respect to any Net Proceeds remaining after such application permitted by Section 6.02(j)(iii)(B), to the Application of Disposition Proceeds;  

(qr) Permitted Refinancing Debt; and 

(rs) Debt outstanding pursuant to the First Lien
Credit Agreement and other Priority Obligations in an aggregate principal amount not to exceed $4,250,000,000. 

“Permitted Discretion” means a determination made in good faith and in the exercise of commercially reasonable
business judgment; provided, however, that so long as the First Lien Credit Agreement remains outstanding, the Agent shall exercise its Permitted Discretion in a manner that is no more restrictive or onerous with respect to the Loan Parties than any
corresponding exercise of Permitted Discretion by the First Lien Agent. 
 “Permitted Dispositions” means
any of the following: 
 (a) transfers and Dispositions of Inventory in the ordinary course of business; 

(b) transfers and Dispositions among the Loan Parties; 

(c) transfers and Dispositions by any Subsidiary of Holdings which is not a Loan Party to any Loan Party; 

(d) transfers and Dispositions by any Subsidiary of Holdings which is not a Loan Party to other Subsidiaries which are not Loan
Parties; 
 (e) transfers and Dispositions (other than transfers and Dispositions of Inventory, Credit Card Accounts
Receivable or any other collateral for the Term Loans)) to any Subsidiary of Holdings which is not 

  
 17 

 
a Loan Party by any Loan Party provided, that any such Disposition of Collateral shall be (i) undertaken in the ordinary course of business or (ii) on terms that are fair and
reasonable and no less favorable to the Loan Party than it would obtain in a comparable arm’s length transaction with a Person that is not a Subsidiary of Holdings; 

(f) the sale of surplus, obsolete or worn out equipment or other property in the ordinary course of business by the Borrowers
or any Subsidiary; 
 (g) transfers and Dispositions of assets of
Holdings or any Subsidiary of Holdings as follows: 
 (i)
Dispositions of real property securing the January 2017 Mortgage Debt, provided, that, after giving effect to any repayment of the January 2017 Mortgage Debt from the Net Proceeds of any such Disposition as required pursuant to the loan
documentation governing the January 2017 Mortgage Debt (as such loan documentation is in effect as of the First Amendment Effective Date or amended thereafter), any remaining Net Proceeds of such Disposition are applied pursuant to the Application
of Disposition Proceeds; 
 (ii) transfers and Dispositions of
any assets held by Holdings or any Subsidiary of Holdings, including any equity interests in any Subsidiary (other than the equity interests of either Borrower or of Sears), in exchange for total consideration in an amount not to exceed $1,000,000
with respect to any transaction or series of related transactions; and 

(iii) other transfers and Dispositions of all or any portion of any
Loan Party’s assets, including any equity interests held by Holdings or any of its Subsidiaries (other than the equity interests or
substantially all of the assets of either Borrower or of Sears), including, but not limited to, (v) any equity interests of any Subsidiaries (other than the equity interests of
either Borrower or of Sears), (w) real property, (x) Intellectual Property (including, without limitation, the Kenmore, Craftsman and Die Hard brands), (y) the Sears Automotive Center business and (z) the Home Services Business
of Holdings and its Subsidiaries, provided, that immediately after giving effect to any such dispositionDisposition and the application of the proceeds thereof,
(i) no Default or Event of Default then exists, (ii) either (A) the Pro Forma and Projected Capped Excess Availability is at least 15% of the Line Cap (provided that, with respect to the transfer or Disposition of the assets
of, or any equity interest in, a Material Subsidiary Guarantor (other than Sears), such Pro Forma and Projected Capped Excess Availability is at least the greater of (x) 25% of the Line Cap or (y) $750,000,000), or (B) such
Loan Party uses the Net Proceeds of such Disposition to repay Priority Obligations in an amount equal to the lesser of (x) 100% of such Net Proceeds and (y) an amount sufficient to cause Pro Forma and Projected Capped Excess Availability
to be 15% or more of the Line Cap (or, with respect to the transfer or Disposition of the assets of, or any equity interest in, a Material Subsidiary Guarantor (other than Sears), an amount sufficient to cause Pro Forma and Projected Capped Excess
Availability to be the greater of (x) 25% of the Line Cap or (y) $750,000,000)the Net Proceeds of such Disposition are applied pursuant to the Application of Disposition
Proceeds, (iii) if the Disposition is to a Subsidiary or Affiliate of a Loan Party which is not a Loan Party, such Disposition shall be on terms that are fair and reasonable and no less favorable to the Loan Party than it would obtain in a
comparable arm’s length transaction with a Person that is not a Subsidiary or Affiliate of a Loan Party, and (iv) Capped Excess Availability is no less than Capped Excess Availability immediately prior to such Disposition; 

(h) transfers and Dispositions which constitute Restricted Payments or Permitted Investments that are otherwise permitted
hereunder; 
 (i) Dispositions permitted pursuant to Section 6.02(b) hereof; 

(j) the sale of other Policy Investments in the ordinary course of business; 

  
 18 

 (k) the sale or Disposition of defaulted receivables and the compromise,
settlement and collection of receivables in the ordinary course of business or in bankruptcy or other proceedings concerning the other account party thereon and not as part of an accounts receivable financing transaction; 

(l) leases, licenses or subleases or sublicenses of any real or personal property not constituting Collateral in the ordinary
course of business; 
 (m) any surrender or waiver of contract rights or the settlement, release, recovery on or surrender of
contract, tort or other claims of any kind (other than, in each case, with respect to rights to license the Related Intellectual Property, unless the limited license granted to the Collateral Agent in such Related Intellectual Property pursuant to
the Loan Documents remains in effect and is acknowledged by the licensee) to the extent that any of the foregoing could not reasonably be expected to have a Material Adverse Effect; 

(n) sales of Inventory determined by the management of the applicable Loan Party not to be saleable in the ordinary course of
business of such Loan Party or any of the Loan Parties; and 
 (o) transfers of assets, including Inventory,
in connection with Store closings (and/or department closings within Stores) permitted pursuant to Section 6.02(l); and 

(q) Dispositions of Credit Card Program Assets to or by a Credit Card
Royalty Securitization Subsidiary pursuant to a Credit Card Royalty Securitization, so long as the Net Proceeds of such Credit Card Royalty Securitization received by Holdings or any Subsidiary are applied as permitted pursuant to
Section 6.02(j)(iii)(B) or, if elected by Borrowers or with respect to any Net Proceeds remaining after such application permitted by Section 6.02(j)(iii)(B), to the Application of Disposition Proceeds. 

“Permitted Holder” means ESL Investments, Inc. and any of its Affiliates other than a Group Member. 

“Permitted Investments” means each of the following as long as no Default or Event of Default exists at the
time of the making such of Investment or would arise from the making of such Investment: 
 (a) Investments existing on, or
contractually committed as of, the Effective Date; 
 (b) (i) Investments by any Loan Party and its Subsidiaries in their
respective Subsidiaries outstanding on the Effective Date, (ii) Investments by any Loan Party and its Subsidiaries in Loan Parties, and (iii) Investments by Subsidiaries that are not Loan Parties in Holdings or any Subsidiary; 

(c) other Investments of any Loan Party in any other Subsidiary of Holdings which is not a Loan Party; provided, that
(1) such Investment is incurred in the ordinary course of business consistent with past practices in connection with cash management, (2) such Investments shall not exceed $100,000,000 in the aggregate at any one time outstanding and the
Pro Forma and Projected Capped Excess Availability is at least 25% of the Line Cap, or (3) (a) at the time of any such Investment and immediately after giving pro forma effect thereto, no Default or Event of Default shall have occurred and
be continuing, and (b) after giving effect to any such Investment (A) the Pro Forma and Projected Capped Excess Availability is at least 15% of the Line Cap, and (B) the Pro Forma Fixed Charge Ratio shall be at least 1.0 to 1.0; 

(d) Investments of any Loan Party in any other Person not constituting an Acquisition; provided that (a) at the
time of any such Investment and immediately after giving pro forma effect thereto, no Default or Event of Default shall have occurred and be continuing, and (b) after giving effect to any such Investment (A) the Pro Forma and Projected
Capped Excess Availability is at least 15% of the Line Cap, and (B) the Pro Forma Fixed Charge Ratio shall be at least 1.0 to 1.0; 

  
 19 

 (e) Investments constituting a Permitted Acquisition and Investments held by the
Person acquired in such Acquisition at the time of such Acquisition (and not acquired in contemplation of such Acquisition); 

(f) Investments arising out of the receipt of non-cash consideration for the sale of assets otherwise permitted under this
Agreement; 
 (g) Policy Investments; 

(h) Investments in Swap Contracts not entered into for speculative purposes; 

(i) to the extent not prohibited by applicable law, (1) advances to officers, directors and employees and consultants of
the Loan Parties made for travel, entertainment, relocation and other ordinary business purposes and (2) advances to officers, directors and employees and consultants of non-Loan Parties made for travel, entertainment, relocation and other
ordinary business purposes, provided, in the case of this clause (2), such advances are made by non-Loan Parties and not with the proceeds of any Investments made by any Loan Party in such non-Loan Party unless otherwise permitted hereunder; 

(j) Investments received in connection with the bankruptcy or reorganization of, or settlement of delinquent accounts and
disputes with or judgments against, customers and suppliers, in each case in the ordinary course of business or Investments acquired by any Group Member as a result of a foreclosure by any Loan Party with respect to any secured Investments or other
transfer of title with respect to any secured Investment in default; 
 (k)
Reserved;Investments consisting of contributions of Credit Card Program Assets to a Credit Card Royalty Securitization Subsidiary in connection with a Credit Card Royalty
Securitization; 
 (l) Investments made with the common stock of Holdings; 

(m) accounts receivable, security deposits and prepayments arising and trade credit granted in the ordinary course of business;

 (n) Guarantees by Holdings or any Subsidiary of operating leases (other than Capital Lease Obligations) or of other
obligations that do not constitute Debt, in each case entered into by Holdings or any Subsidiary in the ordinary course of business; 

(o) (1) advances in the form of a prepayment of expenses of any Loan Party, so long as such expenses are being paid in
accordance with customary trade terms of the applicable Loan Party and (2) advances in the form of a prepayment of expenses of any non-Loan Party, so long as such expenses are being paid in accordance with customary trade terms of the
applicable non-Loan Party, provided, in the case of this clause (2), such advances are made by non-Loan Parties and not with the proceeds of any Investments made by any Loan Party in such non-Loan Party unless otherwise permitted hereunder; 

(p) Investments consisting of the licensing or contribution of Intellectual Property pursuant to joint marketing arrangements
with other Persons, provided that no such Investment shall impair in any manner the limited license granted to the Collateral Agent in such Intellectual Property pursuant to the Loan Documents; 

(q) Investments in joint ventures that own real properties upon which Stores are located existing as of the Effective Date and
entered into hereafter in the ordinary course of business; and 
 (r) other Investments in an amount not to exceed
$250,000,00050,000,000 in the aggregate outstanding at any time; provided that no Investment pursuant to this clause (r) shall be made by any Loan Party
in any Subsidiary of Holdings which is not a Loan Party.any cash returns on such Investments, whether in the form of
dividends or otherwise, other than Investments in Holdings and its Subsidiaries, are subject to the Application of Disposition Proceeds; and 

  
 20 

 (s) Investments in joint
ventures made pursuant to a contribution of assets (other than cash or cash equivalents) constituting all or a portion of the Sears Automotive Center business and/or the DieHard business (including related trademarks and other intellectual
property); provided that (i) in the event that any Inventory included in the Borrowing Base is contributed to any such joint venture in connection with such Investment, the Borrowers shall, upon or prior to the making of such Investment,
deliver to the Agent a Borrowing Base Certificate giving effect on a pro forma basis to such Investment and, to the extent required pursuant to Section 2.11(c), repay Loans or otherwise satisfy Obligations and (ii) any dividends and
distributions received by the Loan Parties from such joint ventures, any Net Proceeds received by the Loan Parties from the sale of any assets by such joint ventures and any other cash received by the Loan Parties from such joint ventures (whether
at the time of contribution of assets to such joint venture or any deferred payment received) shall be applied pursuant to the Application of Disposition Proceeds. 

“Permitted Liens” means: 

(a) Liens for taxes, assessments and governmental charges or levies to the extent such taxes, assessments or governmental
charges are being contested in good faith and by proper proceedings and as to which appropriate reserves are being maintained; 

(b) Liens imposed by law, such as materialmen’s, mechanics’, carriers’, workmen’s and repairmen’s
Liens and other similar Liens arising in the ordinary course of business securing obligations that are not overdue for a period of more than 30 days or that are being contested in good faith by appropriate proceedings and as to which appropriate
reserves are being maintained; 
 (c) landlords’ Liens arising in the ordinary course of business securing
(i) rents not yet due and payable, (ii) rent for Stores in an amount not to exceed the monthly base rent due for the immediately preceding calendar month and (iii) rents for Stores in excess of the amount set forth in the preceding
clause (ii) so long as such amounts are being contested in good faith by appropriate proceedings and as to which appropriate reserves are being maintained; 

(d) any attachment or judgment lien not constituting an Event of Default under Section 7.01(f); 

(e) Liens presently existing or hereafter created in favor of the Agent or the Collateral Agent, on behalf of the Credit
Parties; 
 (f) Liens arising by the terms of commercial letters of credit, entered into in the ordinary course of business
to secure reimbursement obligations thereunder, provided that such Liens only encumber the title documents and underlying goods relating to such letters of credit or cash and cash equivalents as permitted under clause (m) hereof; 

(g) claims under PACA and PASA; 

(h) Liens in favor of issuers of credit cards arising in the ordinary course of business securing the obligation to pay
customary fees and expenses in connection with credit card arrangements; 
 (i) Liens incurred or deposits made by any Group
Member in the ordinary course of business in connection with workers’ compensation and other casualty insurance lines, unemployment insurance and other types of social security, or to secure the performance of tenders, statutory obligations,
bids, leases, government contracts, performance and return-of-money bonds and other similar obligations (exclusive of obligations for the payment of borrowed money); 

  
 21 

 (j) easements, rights-of-way, covenants, conditions, restrictions (including
zoning restrictions), declarations, rights of reverter, minor defects or irregularities in title and other similar charges or encumbrances, whether or not of record, that do not, in the aggregate, interfere in any material respect with the ordinary
course of business, or in respect of any real property which is part of the Collateral, any title defects, liens, charges or encumbrances (other than such prohibited monetary Liens) which the title company is prepared to endorse or insure by
exclusion or affirmative endorsement reasonably acceptable to the Agent and which is included in any title policy; 
 (k) any
interest or title of a lessor or sublessor under, and Liens arising from precautionary UCC financing statements (or equivalent filings, registrations or agreements in foreign jurisdictions) relating to, leases and subleases permitted by this
Agreement; 
 (l) normal and customary rights of setoff upon deposits of cash or other Liens originating solely by virtue of
any statutory or common law provision, or ordinary course contractual obligation, relating to bankers’ liens, rights of setoff or similar rights in favor of banks or other depository institutions; 

(m) Liens on cash and cash equivalents securing obligations in respect of standby or trade letters of credit not constituting
Obligations or trade-related bank guarantees; 
 (n) Liens granted to consignors who have properly perfected on consigned
Inventory owned by such consignors and created in the ordinary course of business; 
 (o) Liens on premium rebates securing
financing arrangements with respect to insurance premiums; 
 (p) deposits and other customary Liens to secure the
performance of bids, trade contracts (other than for Debt), leases (other than Capital Lease Obligations), statutory and regulatory obligations, surety and appeal bonds, performance and return of money bonds, bids, leases, government contracts,
trade contracts, agreements with utilities, and other obligations of a like nature incurred in the ordinary course of business, including those incurred to secure health, safety and environmental obligations in the ordinary course of business; 

(q) Liens that are contractual rights of set-off (i) relating to the establishment
of depository relations with banks not given in connection with the issuance of Debt or (ii) relating to pooled deposit or sweep accounts of the Borrowers or any Subsidiary to permit satisfaction of overdraft or similar obligations incurred in
the ordinary course of business of the Borrowers or any Subsidiary; 
 (r) Liens in favor of customs and revenue authorities
arising as a matter of law to secure payment of customs duties in connection with the importation of goods; 
 (s) Liens
solely on any cash earnest money deposits made by any Borrower or any of its Subsidiaries in connection with any letter of intent or purchase agreement in respect of any Investment permitted hereunder; 

(t) Liens on securities that are the subject of repurchase agreements constituting Policy Investments; 

(u) Liens on cash and cash equivalents securing Swap Contracts incurred in the ordinary course of business; and 

(v) other Liens on cash and cash equivalents in an amount not to exceed $25,000,000 held by a third party as security for any
obligation (other than Debt) permitted to be incurred by any Group Member hereunder. 

  
 22 

 “Permitted Refinancing Debt” shall mean any Debt issued in
exchange for, or the Net Proceeds of which are used to extend, refinance, renew, replace, defease or refund (collectively, to “Refinance”), the Debt being Refinanced (or previous refinancings thereof constituting Permitted
Refinancing Debt); provided, that (a) the principal amount (or accreted value, if applicable) of such Permitted Refinancing Debt does not exceed the principal amount (or accreted value, if applicable) of the Debt so Refinanced (plus
unpaid accrued interest and premium (including tender premiums) thereon and underwriting discounts, defeasance costs, fees, commissions and expenses), (b) the maturity date of such Permitted Refinancing Debt shall not be earlier than the
maturity date of the Debt being Refinanced and weighted average life to maturity of such Permitted Refinancing Debt shall be greater than or equal to the weighted average life to maturity of the Debt being Refinanced, (c) if the Debt being
Refinanced is subordinated in right of payment to the Obligations under this Agreement, such Permitted Refinancing Debt shall be subordinated in right of payment to such Obligations on terms at least as favorable to the Lenders as those contained in
the documentation governing the Debt being Refinanced, (d) no Permitted Refinancing Debt shall have different obligors, or greater guarantees or security, or higher priority guarantees or security, than the Debt being Refinanced; and
(e) the Permitted Refinancing Debt shall otherwise be on terms which would not reasonably likely result in a Material Adverse Effect. 

“Person” means an individual, partnership, corporation (including a business trust), joint stock company,
trust, unincorporated association, joint venture, limited liability company or other entity, or a government or any political subdivision or agency thereof. 

“Plan” means a Single Employer Plan or a Multiple Employer Plan. 

“Policy Investments” means Investments made in accordance with the investment policy of the Loan Parties set
forth on Schedule 6.02(k)(ii), as such policy may be amended from time to time with the reasonable consent of the Agent, such consent not to be unreasonably withheld. 

“Priority Obligations” means, collectively, the First Lien Credit Agreement Obligations and the Additional
First Lien Debt Obligations. 
 “Pro Forma and Projected Capped Excess Availability” shall mean, for any
date of calculation, after giving effect to the applicable transaction or payment, the pro forma and projected Capped Excess Availability for the subsequent twelve (12) fiscal month period, determined as of the last day of each fiscal month in
such period and based on Holdings’ good faith projections that are used to run the businesses of the Borrowers and prepared in accordance with past practice, which projections shall be reasonably satisfactory to the Agent. 

“Pro Forma Fixed Charge Ratio” shall mean, for any date of calculation, the Fixed Charge Ratio as of the last
day of the most recently completed fiscal quarter for which financial statements are available or were required to have been delivered pursuant to Section 6.01(j) (the “Reference Date”), after giving pro forma effect to any
applicable transaction or payment as if such transaction or payment had occurred on the first day of the four fiscal quarter period ending on the Reference Date. 

“Pro Rata Share” means, as to any Lender as of any date of determination, a percentage equal to (i) the
sum of such Lender’s (x) share of the outstanding principal amount of the Term Loan as of such date, plus
(y) outstanding principal amount of Line of Credit Loans as of such date, divided by (ii) the aggregate outstanding principal amount of the Term LoanLoans as
of such date. 
 “Recipient” means the Agent, the Collateral Agent, any Lender or any other recipient of any
payment to be made by or on account of any obligation of any Loan Party hereunder. 
 “Register” has the
meaning specified in Section 9.07(e). 

  
 23 

 “Related Intellectual Property” means such rights with respect
to the Intellectual Property of Holdings and its Subsidiaries as are reasonably necessary to permit the Collateral Agent to enforce its rights and remedies under the Loan Documents with respect to the Collateral. 

“REMIC Certificates” means the SRC Commercial Mortgage Trust 2003-1 Mortgage Pass-Through Certificates in the
aggregate face amount of $1,312,416,000 (as amended, supplemented or otherwise modified, replaced or refinanced, in any case in a manner not materially adverse to the Lenders). 

“Reorganization” means with respect to any Multiemployer Plan, the condition that such Plan is in
reorganization within the meaning of Section 4241 of ERISA. 
 “Reportable Event” means any of the
events set forth in Section 4043(c) of ERISA, other than those events as to which the thirty day notice period is waived under subsections .27, .28, .29, .30, .31, .32, .34 or .35 of PBGC Reg. § 4043. 

“Required Lenders” means, at any time, the holders of more than 50% of the principal amount of the
Term LoanLoans then outstanding. 

“Required Term Lenders” means, at any time, the holders of
more than 50% of the principal amount of the Term Loans then outstanding. 
 “Requirements of Law” means
as to any Person, the Certificate of Incorporation and By-Laws or other organizational or governing documents of such Person, and any law, treaty, rule or regulation or determination of an arbitrator or a court or other Governmental Authority, in
each case applicable to or binding upon such Person or any of its property or to which such Person or any of its property is subject. 

“Restricted Payment” means any dividend or other distribution (whether in cash, securities or other property)
with respect to any equity interests in Holdings or any Subsidiary of Holdings, or any payment (whether in cash, securities or other property), including any sinking fund or similar deposit, on account of the purchase, redemption, retirement,
acquisition, cancellation or termination of any such equity interests in Holdings or any Subsidiary of Holdings or any option, warrant or other right to acquire any such equity interests in Holdings or any Subsidiary of Holdings. 

“Sears” means Sears, Roebuck and Co., a New York corporation. 

“SEC” means the United States Securities and Exchange Commission. 

“Security Agreement” means that certain Security Agreement, dated as of October 12, 2010, by Holdings and
certain of its subsidiaries in favor of Wilmington Trust, National Association (as successor to Wells Fargo Bank, National Association), in its capacity as collateral agent thereunder, as such Security Agreement may be amended, supplemented or
otherwise modified from time to time, including by that certain First Amendment to Security Agreement, dated as of the date hereof,September 1, 2016 and that certain Pari
Passu Joinder Agreement, dated as of the date hereof.September 1, 2016. 

“Security Documents” means the collective reference to the Security Agreement,
the Existing Intercreditor Agreement and all other security documents hereafter delivered to the Collateral Agent granting a Lien on any property of any Person to secure the obligations and
liabilities of any Loan Party under any Loan Document. 
 “Single Employer Plan” means a single employer
plan, as defined in Section 4001(a)(15) of ERISA, that (a) is maintained for employees of any Borrower or any ERISA Affiliate and no Person other than such Borrower and the ERISA Affiliates or (b) was so maintained and in respect of
which any Borrower or any ERISA Affiliate could have liability under Section 4069 of ERISA in the event such plan has been or were to be terminated. 

  
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 “Solvent” means, when used with respect to any Person, that, as
of any date of determination, (a) the amount of the “present fair saleable value” of the assets of such Person will, as of such date, exceed the amount of all “liabilities of such Person, contingent or otherwise”, as of such
date, as such quoted terms are determined in accordance with applicable federal and state laws governing determinations of the insolvency of debtors, (b) such Person will not have, as of such date, an unreasonably small amount of capital with
which to conduct its business, and (c) such Person will be able to pay its debts as they mature. 

“SRAC” has the meaning provided in the Preamble. 

“Store” means any store owned or leased and operated by any Loan Party. 

“Store Closure Sale” means a store closure sale that, if including more than twenty (20) stores (whether
in one transaction or a series of related transactions), is properly managed by an independent, nationally recognized, professional retail inventory liquidation firm reasonably acceptable to the Agent, over a defined period that is anticipated by
the Borrowers not to exceed 12 weeks (on average) from the date of the same commencement. 
 “Subsidiary” of
any Person means any corporation, partnership, joint venture, limited liability company, trust or estate of which (or in which) more than 50% of the issued and outstanding capital stock or other equity interest having ordinary voting power to elect
a majority of the Board of Directors or other governing body of such corporation, partnership, joint venture, limited liability company, trust or estate (irrespective of whether at the time capital stock or other equity interests of any other class
or classes of such corporation, partnership, joint venture, limited liability company, trust or estate shall or might have voting power upon the occurrence of any contingency), is at the time directly or indirectly owned by such Person, by such
Person and one or more of its other Subsidiaries or by one or more of such Person’s other Subsidiaries. 

“Subsidiary Guarantor” means each direct and indirect wholly owned Domestic Subsidiary of Holdings, that owns
Inventory, Credit Card Accounts Receivable, or other Collateral. 
 “Swap Contract” means (a) any and
all rate swap transactions, basis swaps, credit derivative transactions, forward rate transactions, commodity swaps, commodity options, forward commodity contracts, equity or equity index swaps or options, bond or bond price or bond index swaps or
options or forward bond or forward bond price or forward bond index transactions, interest rate options, forward foreign exchange transactions, cap transactions, floor transactions, collar transactions, currency swap transactions, cross-currency
rate swap transactions, currency options, spot contracts, or any other similar transactions or any combination of any of the foregoing (including any options to enter into any of the foregoing), whether or not any such transaction is governed by or
subject to any master agreement, and (b) any and all transactions of any kind, and the related confirmations, which are subject to the terms and conditions of, or governed by, any form of master agreement published by the International Swaps
and Derivatives Association, Inc., any International Foreign Exchange Master Agreement, or any other master agreement (any such master agreement, together with any related schedules, a “Master Agreement”), including any such
obligations or liabilities under any Master Agreement. 
 “Taxes” means all present or future taxes, levies,
imposts, duties, deductions, withholdings (including backup withholding), assessments, fees or other charges imposed by any Governmental Authority, including any interest, additions to tax or penalties applicable thereto. 

“Term Commitment” means, as to any Term Lender, the obligation of such Term Lender to make its portion of the
Term Loan on the Effective Date, and thereafter, each Incremental Term Loan Commitment, if any. 
 “Term
Lenders” means, collectively, any Persons party hereto as a Term Lender, and each Person that shall become a party hereto as a Term Lender pursuant to Section 9.07 and shall include all future Term Lenders who hold an Extended Term
Loan or Incremental Term Loan. 

  
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 “Term Loan” means, collectively, (i) the term loans made by
the Term Lenders on the Effective Date pursuant to Section 2.01(b) and (ii) any Incremental Term Loans. 

“Term Loan Borrowing” means a portion of the Term Loan of a particular Type; provided that no Term Loan
Borrowing shall be in an aggregate principal amount of less than $5,000,000 and each Term Loan Borrowing constituting a Eurodollar Rate Advance shall be in a principal amount that is an integral multiple of $1,000,000 (unless no portion of the Term
Loan constitutes a Base Rate Advance), and no more than ten (10) Interest Periods in the aggregate for Term Loan Borrowings constituting Eurodollar Rate Advances may be outstanding at any time. 

“Term Loan Margin” (a) with respect to any outstanding portion of the Term Loan that is a Eurodollar Rate
Advance, 7.50% per annum, and (b) with respect to any outstanding portion of the Term Loan that is a Base Rate Advance, 6.50% per annum. 

“Termination Date” means July 20, 2020. 

“Total Extensions of Credit” means at any time, the aggregate, outstanding principal amount of indebtedness
for borrowed money of the Loan Parties secured by Liens on the Collateral, including any applicable Priority Obligations and/or the Existing Second Lien Notes. 

“Trading With the Enemy Act” means 50 U.S.C. § 1 et seq., as amended. 

“Type” means either a Base Rate Advance or a Eurodollar Rate Advance. 

“UCC” means the Uniform Commercial Code as from time to time in effect in the State of New York, provided,
however, that if a term is defined in Article 9 of the Uniform Commercial Code differently than in another Article thereof, the term shall have the meaning set forth in Article 9; provided further that, if by reason of mandatory provisions of law,
perfection, or the effect of perfection or non-perfection, of a security interest in any Collateral or the availability of any remedy hereunder is governed by the Uniform Commercial Code as in effect in a jurisdiction other than New York,
“Uniform Commercial Code” means the Uniform Commercial Code as in effect in such other jurisdiction for purposes of the provisions hereof relating to such perfection or effect of perfection or non-perfection or availability of such remedy,
as the case may be. 
 “Unfunded Pension Liability” means the excess of a Pension Plan’s benefit
liabilities under Section 4001(a)(16) of ERISA, over the current value of that Pension Plan’s assets, determined in accordance with the assumptions used for funding the Pension Plan pursuant to Section 412 of the Internal Revenue Code
for the applicable plan year. 
 “Voting Stock” means capital stock issued by a corporation, or equivalent
interests in any other Person, the holders of which are ordinarily, in the absence of contingencies, entitled to vote for the election of directors (or persons performing similar functions) of such Person, even if the right so to vote has been
suspended by the happening of such a contingency. 
 SECTION 1.02. Computation of Time Periods. In this Agreement, unless
otherwise specified, (a) in the computation of periods of time from a specified date to a later specified date, the word “from” means “from and including” and the words “to” and
“until” each mean “to but excluding” (b) “including” means “including without limitation”; and (c) any reference to a time of day means Eastern time. 

SECTION 1.03. Accounting Terms. All accounting terms not specifically defined herein or in the other Loan Documents shall be
construed in accordance with U.S. generally accepted accounting principles (“GAAP”) which for purposes of Section 6.03 shall be consistently applied. If at any time any change in U.S. generally accepted accounting principles
would affect the computation of any financial ratio or requirement set forth 

  
 26 

 
herein, and either the Borrowers or the Required Lenders shall so request, the Agent, the Lenders and the Borrowers shall negotiate in good faith to amend such ratio or requirement to preserve
the original intent thereof in light of such change in GAAP (subject to the approval of the Required Lenders which shall not be unreasonably withheld), provided that, until so amended, (i) such ratio or requirement shall continue to be
computed in accordance with GAAP prior to such change in principles, and (ii) the Borrowers shall provide to the Agent and the Lenders financial statements and other documents required under this Agreement or as reasonably requested hereunder
setting forth a reconciliation between calculations of such ratio or requirement made before and after giving effect to such change in GAAP. For the avoidance of doubt, no retroactive change in GAAP shall apply to the construction of accounting
terms under this Agreement in the absence of an amendment hereto in accordance with the terms of this Section 1.03. 
 SECTION 1.04.
Other Interpretive Provisions. With reference to this Agreement and each other Loan Document, unless otherwise specified herein or in such other Loan Document, the definitions of terms herein shall apply equally to the singular and plural
forms of the terms defined. Unless the context requires otherwise, (i) any definition of or reference to any agreement, instrument or other document shall be construed as referring to such agreement, instrument or other document as from time to
time amended, supplemented or otherwise modified (subject to any restrictions on such amendments, supplements or modifications set forth herein or in any other Loan Document), (ii) any reference herein to any Person shall be construed to
include such Person’s successors and assigns, (iii) the words “herein,” “hereof” and “hereunder,” and words of similar import when used in any Loan Document, shall be construed to refer to
such Loan Document in its entirety and not to any particular provision thereof, (iv) all references in a Loan Document to Articles, Sections, Exhibits and Schedules shall be construed to refer to Articles and Sections of, and Exhibits and
Schedules to, the Loan Document in which such references appear, (v) any reference to any law shall include all statutory and regulatory provisions consolidating, amending replacing or interpreting such law and any reference to any law or
regulation shall, unless otherwise specified, refer to such law or regulation as amended, modified or supplemented from time to time, and (vi) the words “asset” and “property” shall be construed to have the
same meaning and effect and to refer to any and all tangible and intangible assets and properties, including cash, securities, accounts and contract rights. 

ARTICLE II 
 AMOUNTS AND TERMS OF
THE TERM LOANLOANS 
 SECTION 2.01. The Term Loan. 

(a) Reserved. 
 (b) Each Term
Lender severally agrees, on the terms and conditions hereinafter set forth, to make its portion of the Term Loan to the Borrowers on the Effective Date in a principal amount not to exceed the Term Commitment of such Term Lender. Amounts repaid in
respect of the Term Loan may not be reborrowed. Upon each Term Lender’s making of its portion of the Term Loan, the Term Commitment of such Term Lender shall be terminated. 

SECTION 2.02. ReservedLine of Credit Loan Proposals.
At any time and from time to time during the Line of Credit Issuance Period, Borrowers may deliver Line of Credit Loan Proposals to any Line of Credit Lender or prospective Line of Credit
Lender, specifying in each such Line of Credit Loan Proposal: 
 (a) the date on
which the Borrowers propose that a Line of Credit Loan be made by such Line of Credit Lender (the “Line of Credit Loan Date”), which in the case of any Line of Credit Loan Proposal delivered after the First Amendment Effective Date shall
be not less than one Business Day after the date on which such Line of Credit Loan Proposal is delivered;  

(b) the aggregate principal amount of such proposed Line of Credit Loan, which shall be
$10,000,000 or a whole multiple of $5,000,000 in excess thereof; 

  
 27 

 (c) the date on which the Borrowers
propose that any unpaid principal amount of such Line of Credit Loan be due and payable (the “Line of Credit Loan Maturity Date”), which date may not be more than 179 days following the Line of Credit Loan Date (but no later than the
Termination Date);  
 (d) whether such Line of Credit Loan shall bear interest
at a fixed rate (“Fixed Rate Line of Credit Loans”) or a floating rate (“Eurodollar Rate Line of Credit Loans”); 

(e) in the case of Line of Credit Loans with a Line of Credit Loan Maturity Date that
is more than 30 days from the Line of Credit Loan Date, whether such interest shall be payable in arrears monthly, quarterly or on the Line of Credit Loan Maturity Date;  

(f) (i) in the case of Fixed Rate Line of Credit Loans, the fixed interest rate
(the “Line of Credit Loan Fixed Rate”), and (ii), in the case of Eurodollar Rate Line of Credit Loans, the (x) Eurodollar Rate and (y) the margin over the Eurodollar Rate (the “Line of Credit Loan Margin”), as
applicable, proposed by the Borrower for such Line of Credit Loan; provided, that any Line of Credit Loan Proposal may provide that in the case of any Fixed Rate Line of Credit Loan, such interest is payable in the form of original issue discount
(the “Line of Credit Loan Issuance Discount”); and 
 (g) whether the
proposed Line of Credit Loan is to be funded in cash or to be set off against the amount of any Line of Credit Loan obligation of the Borrowers to the applicable Line of Credit Lender with a Line of Credit Loan Maturity Date equal to the proposed
Line of Credit Loan Date, 
 provided, the aggregate principal amount of all Line of
Credit Loans outstanding hereunder, after giving effect to any Line of Credit Loan proposed to be made pursuant to this Section 2.02, shall not exceed $500,000,000. 

SECTION 2.03.
ReservedLine of Credit Lender Confirmations; Line of Credit Loans. .  

(a) If, after receiving a Line of Credit Loan Proposal, the applicable Line of Credit
Lender or prospective Line of Credit Lender, in its sole and absolute discretion, wishes to make a Line of Credit Loan in the amount and having the terms set forth in such Line of Credit Loan Proposal, then the Line of Credit Lender shall confirm
acceptance of such Line of Credit Loan Proposal to Borrowers in writing (including electronic writing). Upon delivery of such confirmation, the Line of Credit Lender shall become obligated to advance the amount of the Line of Credit Loan (after
giving effect to any Line of Credit Loan Issuance Discount) to the Borrowers on the applicable Line of Credit Loan Date on the terms set forth in the Line of Credit Loan Proposal. If the applicable Line of Credit Lender does not confirm its
acceptance of the Line of Credit Loan Proposal, then it shall have no obligations with respect thereto and no such Line of Credit Loan will be made. 

(b) Each Line of Credit Lender severally agrees, on the terms and conditions set forth
herein, to make each of its Line of Credit Loans to the Borrowers on the applicable Line of Credit Loan Date in the principal amounts set forth in the applicable confirmed Line of Credit Loan Proposals (after giving effect to any Line of Credit Loan
Issuance Discount). Amounts repaid in respect of the Line of Credit Loans may not be reborrowed; provided that the Borrowers may, in their discretion, make Line of Credit Loan Proposals to Line of Credit Lenders with outstanding Line of Credit Loans
for new Line of Credit Loans with Line of Credit Loan Dates that correspond to the Line of Credit Loan Maturity Date of any outstanding Line of Credit Loan. In the event that any Line of Credit Loan Proposal in respect of a Line of Credit Loan so
specifies, the Borrowers and applicable Line of Credit Lender shall fulfill their respective obligations to pay the applicable outstanding Line of Credit Loan on the applicable Line of Credit Loan Maturity Date and fund the applicable Line of Credit
Loan on the corresponding Line of Credit Loan Date by setting off such amounts. 
 SECTION 2.04.
ReservedNotes. Each Lender shall be entitled to request one or more Notes in form reasonably satisfactory to
such Lender to evidence such Lenders Term Loans and/or Line of Credit Loans. 

  
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 SECTION 2.05. Fees. 

(a) Upfront fees. The Borrowers shall pay to each Term Lender an upfront fee
on the Effective Date in an amount equal to 3.0% of such Lender’s Term Commitment, which fee shall be paid by the netting of such amount from the proceeds of the Term Loans. 

(b) Term Loan Repayment Premium. In the event that, prior to the two year anniversary of the Effective Date, all or any portion of the
Term Loans is voluntarily prepaid, refinanced or replaced (a “Prepayment Transaction”), the Borrowers shall pay (x) a prepayment premium equal to 2.00% of the aggregate principal amount of the Term Loan so prepaid, refinanced
or replaced, if such Prepayment Transaction occurs on or prior to the first anniversary of the Effective Date, and (y) a prepayment premium equal to 1.00% of the aggregate principal amount of the Term Loan so prepaid, refinanced or replaced, if
such Prepayment Transaction occurs after the first anniversary of the Effective Date but on or prior to the second anniversary of the Effective Date. Such amounts shall be due and payable on the date of effectiveness of such Prepayment Transaction.

 (c) Other Fees. The Borrowers shall pay to the Agent the agency and administrative fees, if any, as may be separately agreed in
writing between the Borrowers and such party. 
 SECTION 2.06. Reserved. 

SECTION 2.07. Repayment of Term LoanLoans. 

(a) Reserved.Each Borrower shall repay to the applicable Line
of Credit Lenders on the applicable Line of Credit Loan Maturity Dates the aggregate principal amount of the applicable Line of Credit Loans. 

(b) Each Borrower shall repay to the Agent for the ratable account of the Term Lenders on the Termination Date the aggregate principal amount
of the Term Loan then outstanding. 
 SECTION 2.08. Interest. 

(a) Line of Credit Loans. Each Borrower shall pay interest on the unpaid principal
amount of each Line of Credit Loan (other than any Fixed Rate Line of Credit Loan made with a Line of Credit Loan Issuance Discount) made to it and owing to each Line of Credit Lender from the applicable Line of Credit Loan Date until such principal
amount shall be paid in full, at the following rates per annum: 

(i) Fixed Rate Line of Credit Loans. During such periods as any Fixed
Rate Line of Credit Loan is outstanding, such Fixed Rate Line of Credit Loan shall earn interest at a rate per annum equal to the Line of Credit Loan Fixed Rate set forth in the applicable Line of Credit Loan Proposal, payable in arrears on the
dates set forth in the applicable Line of Credit Loan Proposal for such Fixed Rate Line of Credit Loan.  

(ii) (a) Reserved.
Eurodollar Rate Line of Credit Loans. During such periods as any Eurodollar Rate Line of Credit Loan is outstanding, such Eurodollar Rate Line of Credit Loan shall earn interest at
a rate per annum equal to the sum of (x) the Eurodollar Rate for such Line of Credit Loan, plus (y) the Line of Credit Loan Margin, in each case as set forth in the applicable Line of Credit Loan Proposal, payable in arrears on the dates
set forth in the applicable Line of Credit Loan Proposal for such Eurodollar Rate Line of Credit Loan.  
 (b) Term Loan. Each
Borrower shall pay interest on the unpaid principal amount of the Term Loan made to it and owing to each Term Lender from the Effective Date until such principal amount shall be paid in full, at the following rates per annum: 

(i) Base Rate Advances. During such periods as any outstanding portion of the Term Loan is a Base Rate Advance, each
such Term Loan Borrowing shall earn interest at a rate per annum equal at all times to the sum of (x) the Base Rate in effect from time to time plus (y) the Term Loan Margin for Base Rate Advances, payable in arrears quarterly on
the 5th day subsequent to the last day of each month during such periods and on the date such Base Rate Advance shall be Converted or paid in full. 

  
 29 

 (ii) Eurodollar Rate Advances. During such periods as any outstanding
portion of the Term Loan is a Eurodollar Rate Advance, each such Term Loan Borrowing shall earn interest at a rate per annum equal at all times during each Interest Period for such Eurodollar Rate Advance to the greater of (A) 1.00% or
(B) the Eurodollar Rate for such Interest Period for such outstanding portion of the Term Loan plus, in either case, the Term Loan Margin for Eurodollar Rate Advances, payable in arrears on the last day of such Interest Period and, if
such Interest Period has a duration of more than three months, on each day that occurs during such Interest Period every three months from the first day of such Interest Period and on the date such Eurodollar Rate Advance shall be Converted or paid
in full. 
 (c) Reserved. 

(d) Reserved. Line of Credit Loan Default Interest. Upon the
occurrence and during the continuance of an Event of Default, at the option of the Agent or on the request of the applicable Line of Credit Lender, the Borrowers shall pay interest on the principal amount of the Line of Credit Loans then
outstanding, payable in arrears on demand, at a rate per annum equal to 2% per annum above the rate per annum otherwise required to be paid on the outstanding amount of each applicable Line of Credit Loan. Further, the Borrowers shall pay
interest, to the fullest extent permitted by law, on the amount of any interest, fee or other amount (other than principal) payable hereunder that is not paid when due, from the date such amount shall be due until such amount shall be paid in full,
payable in arrears on the date such amount shall be paid in full and on demand, at a rate per annum equal to 2% per annum above the rate per annum otherwise required to be paid with respect to the applicable Line of Credit Loan. 

(e) Default Interest. Upon the occurrence and during the continuance of an Event of Default, at the option of the Agent or on the
request of the Required Term Lenders, the Borrowers shall pay interest on the principal amount of the Term Loan then outstanding, payable in arrears on the dates referred to in Sections
2.08(b) above, at a rate per annum equal to 2% per annum above the rate per annum required to be paid on the outstanding amount of the Term Loan pursuant to Section 2.08(b)(i) above. Further, the Borrowers shall pay interest, to the
fullest extent permitted by law, on the amount of any interest, fee or other amount (other than principal) payable hereunder that is not paid when due, from the date such amount shall be due until such amount shall be paid in full, payable in
arrears on the date such amount shall be paid in full and on demand, at a rate per annum equal to 2% per annum above the rate per annum required to be paid on Base Rate Advances pursuant to Section 2.08(b)(i). 

(f) Regulation D Compensation. Each Term Lender that is subject to reserve
requirements of the Board of Governors of the Federal Reserve System (or any successor) may require the Borrowers to pay, contemporaneously with each payment of interest on the Eurodollar Rate Advances, additional interest on the related Eurodollar
Rate Advances of such Term Lender at the rate per annum equal to the excess of (i) (A) the applicable Eurodollar Rate divided by (B) one minus the Eurodollar Rate Reserve
Percentage over (ii) the applicable Eurodollar Rate. Any Term Lender wishing to require payment of such additional interest (x) shall so notify the Agent and the Borrowers, in
which case such additional interest on the Eurodollar Rate Advances of such Term Lender shall be payable to such Term Lender at
the place indicated in such notice with respect to each Interest Period commencing at least five Business Days after the giving of such notice and (y) shall notify the Agent and the Borrowers at least five Business Days prior to each date on
which interest is payable on the amount then due it under this Section. Each such notification shall be accompanied by such information as the Borrowers may reasonably request. 

SECTION 2.09. Interest Rate Determination. (a) The Agent shall give prompt notice to the Borrowers and the
Term Lenders of the applicable interest rate determined by the Agent for purposes of Section 2.08(b). 

(b) If, with respect to any Eurodollar Rate Advances, the Required Term Lenders
notify the Agent at least one Business Day before the date of any proposed Eurodollar Rate Advance that the Eurodollar Rate for any Interest Period for such Eurodollar Rate Advances will not adequately reflect the cost to such Required
Term Lenders of making, funding or maintaining their respective Eurodollar Rate Advances for such Interest Period, the Agent shall forthwith so notify the Borrowers and the
Term Lenders, whereupon (i) each Eurodollar Rate Advance will 

  
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automatically, on the last day of the then existing Interest Period therefor, Convert into a Base Rate Advance, and (ii) the obligation of the
Term Lenders to Convert Base Rate Advances into Eurodollar Rate Advances shall be suspended until the Agent shall notify the Borrowers and the
Term Lenders that the circumstances causing such suspension no longer exist. 

(c) If any Borrower shall fail to select the duration of any Interest Period for any Eurodollar Rate Advances in accordance with the provisions
contained in the definition of “Interest Period” in Section 1.01, the Agent will forthwith so notify such Borrower and the Term Lenders and such Eurodollar Rate Advances will
automatically, on the last day of the then existing Interest Period therefor, Convert into Base Rate Advances. 
 (d) On the date on which
the aggregate unpaid principal amount of Eurodollar Rate Advances comprising any Borrowing shall be reduced, by payment or prepayment or otherwise, to less than $5,000,000, such Eurodollar Rate Advances shall automatically Convert into Base Rate
Advances. 
 (e) Upon the occurrence and during the continuance of any Event of Default, at the option of the Agent or on the request of the
Required Term Lenders (i) each Eurodollar Rate Advance will automatically, on the last day of the then existing Interest Period therefor, Convert into a Base Rate Advance and
(ii) the obligation of the Term Lenders to Convert any outstanding portion of the Term Loan into Eurodollar Rate Advances shall be suspended. 

SECTION 2.10. Optional Conversion of Term Loan Borrowings. The Borrowers may on any Business Day, upon notice given to the Agent not
later than 12:00 noon on the third Business Day prior to the date of the proposed Conversion and subject to the provisions of Sections 2.09 and 2.13, Convert any Term Loan Borrowing of one Type into a Term Loan Borrowing of the other Type;
provided, however, that any Conversion of Eurodollar Rate Advances into Base Rate Advances shall be made only on the last day of an Interest Period for such Eurodollar Rate Advances. Each such notice of a Conversion shall, within the
restrictions specified above, specify (i) the date of such Conversion, (ii) Term Loan Borrowings to be Converted, and (iii) if such Conversion is into Eurodollar Rate Advances, the duration of the initial Interest Period for each such
Term Loan Borrowing. Each notice of Conversion shall be irrevocable and binding on the applicable Borrower. 
 SECTION 2.11. Optional and
Mandatory Prepayments of Term Loan.. 
 (a) (i)
Reserved.Any Borrower may, upon notice given not later than 12:00 noon on the date three Business Days prior to such prepayment to the Agent stating the proposed date
and aggregate principal amount of the prepayment, and if such notice is given such Borrower shall, prepay the outstanding principal amount of any Line of Credit Loan in whole or in part, together with accrued interest to the date of such prepayment
on the principal amount prepaid; provided, however, that (x) each partial prepayment shall be in an aggregate principal amount of $5,000,000 or an integral multiple of $1,000,000 in excess thereof and (y) in the event of any such
prepayment of a Eurodollar Rate Line of Credit Loan, the applicable Borrower shall be obligated to reimburse the Line of Credit Lenders in respect thereof pursuant to Section 9.04(e). 

(ii) Any Borrower may, subject to the terms of this Section 2.11(a)(ii) and Section 2.05(b) and upon notice given not
later than 12:00 noon on the date three Business Days prior to such prepayment to the Agent stating the proposed date and aggregate principal amount of the prepayment, and if such notice is given such Borrower shall, prepay the outstanding principal
amount of the Term Loan in whole or ratably in part, together with accrued interest to the date of such prepayment on the principal amount prepaid; provided, however, that (w) each partial prepayment shall be in an aggregate principal amount of
$5,000,000 or an integral multiple of $1,000,000 in excess thereof, (x) reserved, (y) reserved, and (z) in the event of any such prepayment of a Eurodollar Rate Advance, the applicable Borrower shall be obligated to reimburse the
Term Lenders in respect thereof pursuant to Section 9.04(c). 
 (b)
Reserved. 
 (c) No later than ten (10) Business Days following the last day of any fiscal quarter of Holdings (the “Reference
Quarter”), if (i) the Total Extensions of Credit as of the last day of the Reference Quarter exceeded the Borrowing Base as of the last day of the Reference Quarter, and (ii) the Total Extensions of Credit as of the last day of

  
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the fiscal quarter of Holdings immediately preceding the Reference Quarter exceeded the Borrowing Base as of the last day of the fiscal quarter of Holdings immediately preceding the Reference
Quarter, the Borrowers shall prepay the Term Loans in an amount equal to the excess described in the foregoing clause (i) 

(d) Reserved. 

(d) Reserved.  

(e) The Borrowers shall prepay Priority Obligation and/or Term Loans in an amount necessary to avoid the occurrence of a
Collateral Coverage Event (as defined in the Indenture for the Existing Second Lien Notes). 
 (f) Reserved. 

(g) The Borrowers shall prepay (x) the Term Loan in an amount equal to 50% of Excess Cash Flow for each fiscal year of Holdings beginning
with the fiscal year ending on or about January 31, 2016, and (y) the Term Loan and the 2016 Term Loan on a ratable basis in an aggregate amount equal to 50% of Excess Cash Flow for each fiscal year of Holdings beginning with the fiscal
year ending on or about January 31, 2017. Each prepayment under this clause (g) shall be made within 90 days following the end of each applicable fiscal year of Holdings; provided, however, that no prepayment shall be
required under this clause (g) if, after compliance with any prepayment obligation in any Priority Obligation, any Priority Obligations remain outstanding on the date on which such prepayment would otherwise be required. 

(h) The Borrowers shall deliver to the Agent, in connection with each prepayment required under Section 2.11(g), a certificate signed by
an Authorized Officer of the Borrowers setting forth in reasonable detail the calculation of the amount of such prepayment. 
 (i) Any
prepayment of the Term Loan pursuant to clauses (c), (e) or (g) of this Section 2.11 shall be applied, first, to any Base Rate Advances then outstanding and the balance of such prepayment, if any, to the Eurodollar Rate Advances then
outstanding. 
 SECTION 2.12. Increased Costs. (a) If, due to either (i) after the Effective
Date, with respect to Term Loans, or the date of any Line of Credit Loan, with respect to such Extension of Credit, the introduction of or any change in or in the interpretation of any law
or regulation or (ii) the compliance with any guideline or request from any central bank or other governmental authority (whether or not having the force of law) made or issued after the Effective
Date, with respect to Term Loans, or the date of any Line of Credit Loan, with respect to such Extension of Credit, there shall be any increase in the cost to any Lender of agreeing to make
or making, funding or maintaining Eurodollar Rate Advances (excluding for purposes of this Section 2.12 any such increased costs resulting from (i) Taxes or Other Taxes (as to which Section 2.15 shall govern) and (ii) changes in
the basis of taxation of overall net income or overall gross income by the United States or by the foreign jurisdiction or state under the laws of which such Lender is organized or has its Applicable Lending Office or any political subdivision
thereof), then the Borrowers shall from time to time, upon demand by such Lender (with a copy of such demand to the Agent), pay to the Agent for the account of such Lender additional amounts sufficient to compensate such Lender for such increased
cost; provided that a Lender claiming additional amounts under this Section 2.12(a) agrees to use reasonable efforts (consistent with its internal policy and legal and regulatory restrictions) to designate a different Applicable Lending Office
and/or take other commercially reasonable action if the making of such a designation or the taking of such actions would avoid the need for, or reduce the amount of, such increased cost that may thereafter accrue and would not, in the reasonable
judgment of such Lender, be otherwise disadvantageous to such Lender. A certificate as to the amount of such increased cost, submitted to the Borrowers and the Agent by such Lender, shall be entitled to a presumption of correctness. If any Borrower
so notifies the Agent after any Lender notifies the Borrowers of any increased cost pursuant to the foregoing provisions of this Section 2.12(a), such Borrower may, upon payment of such increased cost to such Lender, replace such Lender with a
Person that is an Eligible Assignee in accordance with the terms of Section 9.07 (and the Lender being so replaced shall take all action as may be necessary to assign its rights and obligations under this Agreement to such Eligible Assignee).

  
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 (b) If any Lender determines that compliance with any change after the Effective
Date, with respect to Term Loans, or the date of any Line of Credit Loan, with respect to such Extension of Credit, in law or regulation or any guideline or request after the Effective
Date, with respect to Term Loans, or the date of any Line of Credit Loan, with respect to such Extension of Credit, from any central bank or other governmental authority (whether or not
having the force of law) affects or would affect the amount of capital or liquidity required or expected to be maintained by such Lender or any entity controlling such Lender and that the amount of such capital or liquidity is increased by or based
upon the existence of such Lender’s commitment to lend hereunder and other commitments of this type, then, upon demand by such Lender (with a copy of such demand to the Agent), the Borrowers shall pay to the Agent for the account of such
Lender, from time to time as specified by such Lender, additional amounts sufficient to compensate such Lender or such entity in the light of such circumstances, to the extent that such Lender reasonably determines such increase in capital or
liquidity to be allocable to the existence of such Lender’s commitment to lend hereunder. A certificate as to such amounts submitted to the Borrowers and the Agent by such Lender shall be entitled to a presumption of correctness.
Notwithstanding anything herein to the contrary, the Dodd-Frank Wall Street Reform and Consumer Protection Act and all requests, rules, guidelines, requirements and directives thereunder issued in connection therewith or in implementation thereof
and all requests, rules, guidelines or directives promulgated by the Bank for International Settlements, the Basel Committee on Banking Supervision (or any successor or similar authority) or the United States or foreign regulatory authorities, in
each case pursuant to Basel III, shall in each case be deemed to be a change in law covered by this Section 2.12 regardless of the date enacted, adopted, issued or implemented. 

(c) The Borrowers shall not be required to compensate a Lender pursuant to this Section for any increased costs or capital, liquidity or
reserve requirement or pursuant to Section 2.15 for any Taxes incurred more than six months prior to the date that such Lender notifies the Borrowers of the change or issuance giving rise to such increased costs or capital, liquidity or reserve
requirement or Tax and of such Lender’s intention to claim compensation therefor; provided that if the change or issuance giving rise to such increased costs or capital, liquidity or reserve requirement or Tax is retroactive, then the
six-month period referred to above shall be extended to include the period of retroactive effect thereof. 
 SECTION 2.13.
Illegality. Notwithstanding any other provision of this Agreement, if any Lender shall notify the Agent that the introduction of or any change in or in the interpretation of any law or regulation makes it unlawful, or any central bank or
other governmental authority asserts that it is unlawful, for any Lender or its Eurodollar Lending Office to perform its obligations hereunder to make Eurodollar Rate Advances or to fund or maintain Eurodollar Rate Advances hereunder, (a) each
Eurodollar Rate Advance will automatically, upon such demand, Convert into a Base Rate Advance and, (b) the obligation of the
Term Lenders to Convert Term Loan Borrowings into Eurodollar Rate Advances shall be suspended until the Agent shall notify the Borrowers and the
Term Lenders that the circumstances causing such suspension no longer exist and (c) each Eurodollar Rate Line of Credit Loan
will automatically, upon such demand, convert into a fixed rate Line of Credit Loan with an equivalent effective interest rate as reasonably agreed by the Borrowers and the applicable Line of Credit Lender. 

SECTION 2.14. Payments and Computations. (a) The Borrowers shall make each payment hereunder and under the other Loan Documents,
without any right of counterclaim or set-off, not later than 1:00 P.M. on the day when due in U.S. dollars to the Agent into the account specified by the Agent in writing from time to time in same day funds. The Agent will promptly thereafter cause
to be distributed like funds relating to the payment of principal or interest or commitment fees (i) in the case of Term Loans, ratably (other than amounts payable pursuant to
Section 2.12, 2.15 or 9.04(c)) to the Term Lenders for the account of their respective Applicable Lending Offices, and like funds relating to the payment of any other amount payable to
any Term Lender to such Term Lender for the account of its Applicable Lending Office, in each case to be applied in accordance
with the terms of this Agreement and (ii) in the case of Line of Credit Loans, to the applicable Line of Credit Lender(s). Upon its acceptance of an Assignment and Acceptance and
recording of the information contained therein in the Register pursuant to Section 9.07(c), from and after the effective date specified in such Assignment and Acceptance, the Agent shall make all payments hereunder and under the other Loan
Documents in respect of the interest assigned thereby to the Lender assignee thereunder, and the parties to such Assignment and Acceptance shall make all appropriate adjustments in such payments for periods prior to such effective date directly
between themselves. 

  
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 (b) Each Borrower hereby authorizes each Lender, if and to the extent payment owed by it to such
Lender is not made when due hereunder or under the other Loan Documents, to charge from time to time against any or all of such Borrower’s accounts with such Lender any amount so due. Any such Lender so charging such accounts shall deliver the
proceeds therefrom to the Agent for distribution to the Credit Parties in the manner set forth herein and in the other Loan Documents. 

(c) All(i) In the case of Term Loans, all computations of interest
based on the Base Rate shall be made by the Agent on the basis of a year of 365 or 366 days, as the case may be, and all computations of interest based on the Eurodollar Rate or the Federal Funds Rate and of duration-based fees, if any, shall be
made by the Agent on the basis of a year of 360 days, in each case for the actual number of days (including the first day but excluding the last day) occurring in the period for which such interest or commitment fees are
payable, (ii) in the case of Fixed Rate Line of Credit Loans, all computations of interest shall be made by the Agent on the basis of a year of 365 or 366 days, as the case may be, and
(iii) in the case of Eurodollar Rate Line of Credit Loans, all computations of interest shall be made by the Agent on the basis of a year of 360 days, in each case for the actual number of days (including the first day but excluding the last
day) occurring in the period for which such interest or commitment fees are payable. Each determination by the Agent of an interest rate hereunder shall be conclusive and binding for all purposes, absent manifest error. 

(d) Whenever any payment hereunder or under the other Loan Documents shall be stated to be due on a day other than a Business Day, such payment
shall be made on the next succeeding Business Day, and such extension of time shall in such case be included in the computation of payment of interest or commitment fee, as the case may be; provided, however, that, if such extension
would cause payment of interest on or principal of Eurodollar Rate Advances or Eurodollar Line of Credit Loans to be made in the next following calendar month, such payment shall be made on
the next preceding Business Day. 
 (e) Unless the Agent shall have received notice from any Borrower prior to the date on which any payment
is due by it to the Lenders hereunder that such Borrower will not make such payment in full, the Agent may assume that the applicable Borrower has made such payment in full to the Agent on such date and the Agent may, in reliance upon such
assumption, cause to be distributed to each Lender on such due date an amount equal to the amount then due such Lender. If and to the extent such Borrower shall not have so made such payment in full to the Agent, each Lender shall repay to the Agent
forthwith on demand such amount distributed to such Lender together with interest thereon, for each day from the date such amount is distributed to such Lender until the date such Lender repays such amount to the Agent, at the Federal Funds Rate.

 SECTION 2.15. Taxes. (a) Any and all payments by the Borrowers to or for the account of any Lender, the Agent or the
Collateral Agent hereunder or under the other Loan Documents or any other documents to be delivered hereunder shall be made, in accordance with Section 2.14 or the applicable provisions of such other documents, free and clear of and without
deduction for any and all present or future Taxes (excluding any Excluded Taxes). If the Borrowers shall be required by law to deduct any Taxes from or in respect of any sum payable hereunder or under any other Loan Document or any other documents
to be delivered hereunder to any Lender, the Agent or the Collateral Agent, (i) to the extent that the withholding or deduction is made on account of Indemnified Taxes, the sum payable shall be increased as may be necessary so that after making
all required deductions for Indemnified Taxes (including deductions for Indemnified Taxes applicable to additional sums payable under this Section 2.15) such Lender, the Agent and the Collateral Agent (as the case may be) receive an amount
equal to the sum each would have received had no such deductions of Indemnified Taxes been made, (ii) the Borrowers shall make such deductions as are determined by such Borrowers to be required based upon the information and documentation it
has received pursuant to Sections 2.15(e) and (f) and (iii) the Borrowers shall pay the full amount deducted to the relevant taxation authority or other authority in accordance with applicable law. 

(b) In addition, the Borrowers shall pay any present or future stamp or documentary taxes or any other excise or property taxes, charges or
similar levies that arise from any payment made hereunder or under the other Loan Documents or from the execution, delivery or registration of, performing under, or otherwise with respect to, this Agreement or the other Loan Documents or any other
documents to be delivered hereunder, but excluding (i) any such taxes that are Other Connection Taxes imposed with respect to an assignment (other than an assignment made pursuant to Section 9.16), and (ii) all other United States
federal taxes other than withholding taxes (hereinafter referred to as “Other Taxes”). Other Taxes shall not include any Taxes imposed on, or measured by reference to, gross income, net income or gain. 

  
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 (c) Without duplication of any additional amounts paid pursuant to Section 2.15(a), the
Borrowers shall indemnify each Lender, the Agent and the Collateral Agent for and hold it harmless against the full amount of Indemnified Taxes or Other Taxes (including Indemnified Taxes or Other Taxes imposed or asserted by any jurisdiction on
amounts payable under this Section 2.15) imposed on or paid by such Lender, the Agent or the Collateral Agent (as the case may be) and any liability (including penalties, interest and reasonable expenses) arising therefrom or with respect
thereto. This indemnification shall be made within 30 days from the date such Lender, the Agent or the Collateral Agent (as the case may be) makes written demand therefor. 

(d) Within 30 days after the date of any payment of Indemnified Taxes, the Borrowers shall furnish to the Agent, at its address referred to in
Section 9.02, the original or a certified copy of a receipt evidencing such payment to the extent such a receipt is issued therefor, or other written proof of payment thereof that is reasonably satisfactory to the Agent. 

(e) Any Lender that is entitled to an exemption from or reduction of withholding tax with respect to payments made under any Loan Document
shall deliver to the Borrowers and the Agent, at the time or times reasonably requested by the Borrowers or the Agent, such properly completed and executed documentation reasonably requested by the Borrowers or the Agent as will permit such payments
to be made without withholding or at a reduced rate of withholding. In addition, any Lender, if reasonably requested by the Borrowers or the Agent, shall deliver such other documentation prescribed by applicable Law or reasonably requested by the
Borrowers or the Agent as will enable the Borrowers or the Agent to determine whether or not such Lender is subject to backup withholding or information reporting requirements. 

(i) Without limiting the generality of the foregoing: 

(a) Each Lender that is a United States person, on or prior to the date of its execution and delivery of this Agreement in the
case of each Lender and on the date of the Assignment and Acceptance pursuant to which it becomes a Lender in the case of each other Lender, and from time to time thereafter as reasonably requested in writing by the Borrowers or the Agent), shall
provide each of the Agent and the Borrowers with two executed originals of Internal Revenue Service Form W-9 certifying that such Lender is exempt from U.S. federal backup withholding tax on payments pursuant to this Agreement or the other Loan
Documents; and 
 (b) Each Lender organized under the laws of a jurisdiction outside the United States, and each other Lender
that is not a domestic corporation within the meaning of Section 7701(a)(30) of the Internal Revenue Code: 
 (1)
represents that all payments to be made to it under this Agreement or any other Loan Document are exempt from United States withholding tax (including backup withholding tax) under an applicable statute or tax treaty; 

(2) on or prior to the date of its execution and delivery of this Agreement in the case of each Lender and on the date of the
Assignment and Acceptance pursuant to which it becomes a Lender in the case of each other Lender, and from time to time thereafter as reasonably requested in writing by the Borrowers (but only so long as such Lender remains lawfully able to do so),
shall provide each of the Agent and the Borrowers with two executed originals of Internal Revenue Service Forms W-8BEN, W-8BEN-E or W-8ECI, as appropriate, or any successor or other form prescribed by the Internal Revenue Service, certifying that
such Lender is exempt from or entitled to a reduced rate of United States withholding tax on payments pursuant to this Agreement or the other Loan Documents; and 

(3) on or prior to the date of its execution and delivery of this Agreement in the case of each Lender and on the date of the
Assignment and Acceptance pursuant to which it becomes a Lender in the case of each other Lender, and from time to time thereafter as reasonably requested in writing by the Borrowers (but only so long as such Lender remains lawfully able to do so),
shall provide each of the Agent and the Borrowers 

  
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with executed originals of any other form prescribed by applicable law as a basis for claiming exemption from or a reduction in U.S. federal withholding tax, duly completed, together with
supplementary documentation as may be prescribed by applicable law to permit the Borrowers or the Agent to determine the withholding or deduction required to be made. 

If the form provided by a Lender at the time such Lender first becomes a party to this Agreement indicates a United States interest
withholding tax rate in excess of zero, withholding tax at such rate shall be considered excluded from Indemnified Taxes unless and until such Lender provides the appropriate forms certifying that a lesser rate applies, whereupon withholding tax at
such lesser rate only shall be considered excluded from Indemnified Taxes for periods governed by such form; provided, however, that, if at the date of the Assignment and Acceptance pursuant to which a Lender assignee becomes a party
to this Agreement, the Lender assignor was entitled to payments under subsection (a) in respect of United States withholding tax with respect to interest paid at such date, then, to such extent, the term Indemnified Taxes shall include (in
addition to withholding taxes that may be imposed in the future or other amounts otherwise includable in Indemnified Taxes) United States withholding tax, if any, applicable with respect to the Lender assignee on such date. If any form or document
referred to in this subsection (e) requires the disclosure of information, other than information necessary to compute the tax payable and information required on the date hereof by Internal Revenue Service Form W-8BEN, W-8BEN-E, or W-8ECI,
that the Lender reasonably considers to be confidential, the Lender shall give notice thereof to the Borrowers and shall not be obligated to include in such form or document such confidential information. For purposes of this subsection (e), the
terms “United States” and “United States person” shall have the meanings specified in Section 7701 of the Internal Revenue Code. 

(f) For any period with respect to which a Lender has failed to provide the Borrowers with the appropriate form, certificate or other document
described in Section 2.15(e) (other than if such failure is due to a change in law, or in the interpretation or application thereof, occurring subsequent to the date on which a form, certificate or other document originally was
required to be provided, or if such form, certificate or other document otherwise is not required under subsection (e) above), such Lender shall not be entitled to indemnification under Section 2.15(a) or (c) with respect to
Indemnified Taxes imposed by the United States by reason of such failure; provided, however, that should a Lender become subject to Indemnified Taxes because of its failure to deliver a form, certificate or other document required
hereunder, the Borrowers shall take such steps as the Lender shall reasonably request to assist the Lender to recover such Indemnified Taxes. Further, if a payment made to a Lender under any Loan Document would be subject to U.S. federal withholding
tax imposed by FATCA if such Lender were to fail to comply with the applicable reporting requirements of FATCA (including those contained in Section 1471(b) or 1472(b) of the Code, as applicable), such Lender shall deliver to the Borrowers and
the Agent at the time or times prescribed by law and at such time or times reasonably requested by the Borrowers or the Agent such documentation prescribed by applicable law (including as prescribed by Section 1471(b)(3)(C)(i) of the Internal
Revenue Code) and such additional documentation reasonably requested by the Borrowers or the Agent as may be necessary for the Borrowers and the Agent to comply with their obligations under FATCA and to determine that such Lender has complied with
such Lender’s obligations under FATCA or to determine the amount to deduct and withhold from such payment. Solely for purposes of this paragraph (f), “FATCA” shall include any amendments made to FATCA after
Thethe Effective Date. 
 (g) Each Lender agrees that if any
form or certification it previously delivered pursuant to this Section 2.15 expires or becomes obsolete or inaccurate in any respect, it shall update such form or certification or promptly notify the Borrowers and the Agent in writing of its
legal inability to do so. 
 (h) Any Lender claiming any additional amounts payable pursuant to this Section 2.15 agrees to use
reasonable efforts (consistent with its internal policy and legal and regulatory restrictions) to change the jurisdiction of its Eurodollar Lending Office if the making of such a change would avoid the need for, or reduce the amount of, any such
additional amounts that may thereafter accrue and would not, in the reasonable judgment of such Lender, be otherwise disadvantageous to such Lender. 

  
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 (i) If any Lender determines, in its sole discretion exercised in good faith, that it has
actually and finally realized, by reason of a refund, deduction or credit of any Indemnified Taxes paid or reimbursed by the Borrowers pursuant to subsection (a) or (c) above in respect of payments under this Agreement or the other Loan
Documents, a current monetary benefit that it would otherwise not have obtained, and that would result in the total payments under this Section 2.15 exceeding the amount needed to make such Lender whole, such Lender shall pay to the Borrowers,
with reasonable promptness following the date on which it actually realizes such benefit, an amount equal to the amount of such excess, net of all out-of-pocket expenses incurred by such Lender reasonably allocable in securing such refund, deduction
or credit, provided that the Borrowers, upon the request of such Lender, agree to repay the amount paid over to the Borrowers to such Lender in the event such Lender is required to repay such refund to such jurisdiction. Nothing in this
subsection (i) shall be construed to require any Lender to make available to the Borrowers or any other Person its tax returns or any confidential tax information. 

(j) If the Agent, the Collateral Agent or any Lender, as the case may be, shall become aware that it is entitled to claim a refund from a
Governmental Authority in respect of Indemnified Taxes or Other Taxes paid by Borrower pursuant to this Section 2.15, including Indemnified Taxes or Other Taxes as to which it has been indemnified by Borrower, or with respect to which Borrower
or a Group Member that is a signatory hereto has paid additional amounts pursuant to this Section 2.15, it shall notify Borrower of the availability of such refund claim and, if the Agent, the Collateral Agent or any Lender, as the case may be,
determines in good faith that making a claim for refund will not have any adverse consequence to its taxes or business operations, shall, after receipt of a request by Borrower, make a claim to such Governmental Authority for such refund at
Borrower’s expense. 
 SECTION 2.16. Sharing of Payments, Etc. If any
Term Lender shall obtain any payment from any Group Member (whether voluntary, involuntary, through the exercise of any right of set-off, or otherwise) on account of the Term Loan or other
amounts owing to it (other than pursuant to Section 2.05(b), 2.07, 2.11, 2.12, 2.15, 2.18, 2.19 or 9.04(c)) in excess of its ratable share, such Term Lender shall forthwith purchase
from the other Term Lenders such participations in the Term Loan or other amounts owing to them as shall be necessary to cause such purchasing
Term Lender to share the excess payment ratably with each of them; provided, however, that if all or any portion of such excess payment is thereafter recovered from such
purchasing Term Lender, such purchase from each Term Lender shall be rescinded and such
Term Lender shall repay to the purchasing Term Lender the purchase price to the extent of such recovery together with an amount
equal to such Term Lender’s ratable share (according to the proportion of (i) the amount of such Term Lender’s
required repayment to (ii) the total amount so recovered from the purchasing Term Lender) of any interest or other amount paid or payable by the purchasing
Term Lender in respect of the total amount so recovered. The Borrowers agree that any Term Lender so purchasing a participation
from another Term Lender pursuant to this Section 2.16 may, to the fullest extent permitted by law, exercise all its rights of payment (including the right of set-off) with respect to
such participation as fully as if such Term Lender were the direct creditor of the Borrowers in the amount of such participation. 

SECTION 2.17. Use of Proceeds of the Term
LoanLoans. The proceeds of the Term LoanLoans shall be available (and each Borrower agrees
that it shall use such proceeds) for general corporate purposes of Holdings and its Subsidiaries, including, without limitation, for Acquisitions, Capital Expenditures, cash dividends, payment of any of the Obligations, and stock and bond
repurchases, all to the extent not prohibited under the Loan Documents. 
 SECTION 2.18. Extension of Loans. 

(a) Extension of Term Loans. The Borrowers may at any time and from time to time request that all or a portion of the Term Loans be
amended to extend the termination date with respect to all or a portion thereof (any such Term Loans which have been so amended, “Extended Term Loans”) and to provide for other terms consistent with this Section 2.18. In order
to establish any Extended Term Loans, the Borrowers shall provide a notice to the Agent (who shall provide a copy of such notice to each of the Term Lenders) (each, a “Extension Request”) setting forth the proposed terms (which
shall be determined in consultation with the Agent) of the Extended Term Loans to be established, which shall (x) be identical as offered to each Term Lender (including as to the proposed interest rates and fees payable) and offered pro rata to
each Term Lender hereunder, and (y) be identical to the Term Loans hereunder, except that: (i) the maturity date of the Extended Term Loans shall be later than the Termination Date, (ii) payments of interest and fees may be at
different rates on Extended Term Loans (and related outstandings) (iii) the terms of the Extended Term Loans may provide, subject to the consent of the Required Term Lenders

  
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(excluding from the calculation thereof, any Term Lenders who decline to extend their Term Loans) for other or different covenants and terms that apply solely to any period after the Termination
Date, or, if earlier, the repayment in full of Term Loans that are not Extended Term Loans, and (iv)(A) reserved; (B) all repayments of the Term Loans (including Extended Term Loans) shall be made on a pro rata basis (except for
(1) payments of interest and fees at different rates on commitments (and related outstandings) in accordance with the rights of the applicable Class and (2) repayments required upon the maturity date of the Term Loans of any Class); and
(C) reserved; provided, further, that (A) reserved, (B) reserved, (C) in connection with an Extension Request with respect to the Term Loans either (i) the Term Lenders collectively have consented to the
applicable Extension Request with respect to a majority in amount of the Term Loans or (ii) simultaneously with the effectiveness of the maturity extension in respect of the Extended Term Loans, the Term Loans that are not Extended Term Loans
shall be paid in full (the foregoing not being deemed to modify or waive the provisions of Section 2.11 hereof regarding the conditions precedent to repayment of the Term Loans), (D) reserved and (E) all documentation in respect of
such extension shall be consistent with the foregoing. 
 (b) Extension Request. The Borrowers shall provide the applicable Extension
Request at least ten (10) Business Days (or such shorter period as may be agreed by the Agent) prior to the date on which the applicable Term Lenders are requested to respond. No
Term Lender shall have any obligation to agree to provide any Extended Term Loan pursuant to any Extension Request. Any Term
Lender (each, an “Extending Lender”) wishing to have all or a portion of its Term Loans subject to such Extension Request amended into Extended Term Loan shall notify the Agent (each, an “Extension Election”) on
or prior to the date specified in such Extension Request of the amount of its Term Loans which it has elected to request be amended into Extended Term Loan (subject to any minimum denomination requirements imposed by the Agent). In the event that
the aggregate principal amount of Term Loans in respect of which applicable Term Lenders shall have accepted the relevant Extension Request exceeds the amount of Extended Term Loan requested to be extended pursuant to the Extension Request,
Extension Elections shall be amended to reflect allocations of Term Loans as agreed by Agent and the Borrowers. 
 (c) New Lenders.
Following any Extension Request made by the Borrowers in accordance with this Section 2.18, if the Term Lenders shall have declined to agree during the period specified in Section 2.18(b) above to provide Extended Term Loan in an aggregate
principal amount equal to the amount requested by the Borrowers in such Extension Request, the Borrowers may request that banks, financial institutions or other institutional lenders or investors (including any Extending Lender) provide an Extended
Term Loan or a commitment to provide an additional term loan tranche hereunder (the “Additional Extending Lenders”); provided that such Extended Term Loan of such Additional Extending Lenders (i) shall be in an aggregate
principal amount for all such Additional Extending Lenders not to exceed the aggregate principal amount of Extended Term Loan so declined to be provided by the existing Term Lenders and
(ii) shall be on identical terms to the terms applicable to the terms specified in the applicable Extension Request (and any Extended Term Loan provided by existing Term Lenders in
respect thereof) and, if a new tranche of term loans is to be incurred including other terms as are customary for a term loan provided that the maturity term for any term loan commitment hereunder shall not be earlier than the Termination Date;
provided further that, as a condition to the effectiveness of any Extended Term Loan or term loan commitment of any Additional Extending Lender, the Agent shall have consented (such consent not to be unreasonably withheld or delayed) to each
Additional Extending Lender. Upon the earlier of the Termination Date (including a deemed Termination Date in accordance with clause (C) of the proviso to Section 2.18(a) above) or such earlier date as any declining Term Lenders may
agree), (a) the Term Loans of the applicable declining Term Lenders will be repaid in an aggregate principal amount equal to the Extended Term Loans provided by Additional Extending Lenders and (b) the term loan commitment of each such
Additional Extending Lender will become effective. The Extended Term Loans of Additional Extending Lenders will be incorporated as Term Loans hereunder in the same manner in which Extended Term Loans of existing Term Lenders are incorporated
hereunder pursuant to this Section 2.18. 
 (d) Extension Amendment. Extended Term Loans and term loan commitments of Additional
Extending Lenders shall be established pursuant to an amendment (each, an “Extension Amendment”) to this Agreement among the Borrower, the Agent and each Extending Lender and each Additional Extending Lender, if any, providing an
Extended Term Loan or a term loan commitment as applicable, thereunder, which shall be consistent with the provisions set forth in Sections 2.18(a), (b) and (c) above (but which shall not require the consent of any other Lender). The
effectiveness of any Extension Amendment shall be subject to the satisfaction on the date thereof of each of the conditions set forth in Section 4.02 and, to the extent reasonably requested by the Agent, receipt by the Agent of legal opinions,
board resolutions and officers’ certificates consistent with those delivered on the Effective Date. The Agent shall promptly notify each Lender as to the effectiveness of each Extension Amendment. Each of the

  
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parties hereto hereby agrees that this Agreement and the other Loan Documents may be amended pursuant to an Extension Amendment, without the consent of any other Lenders, to the extent necessary
to (i) reflect the existence and terms of the Extended Term Loans or the term loan commitments as the case may be, incurred pursuant thereto and (ii) effect such other amendments to this Agreement and the other Loan Documents as may be
necessary or appropriate, in the reasonable opinion of the Agent and the Borrowers, to effect the provisions of this Section. 
 SECTION
2.19. Incremental Term Loans. 
 (a) Request for Incremental Term Loan Commitments . Provided no Default or Event of Default
then exists or would arise therefrom, upon notice to the Agent (which shall promptly notify the Term Lenders), the Borrowers may make Incremental Term Loan Commitment requests from time to time; provided, however, that
(w) no such Incremental Term Loan Commitments may be made without the consent of the Agent, whose consent shall not be unreasonably withheld, (x) the aggregate amount of all Incremental Term Loan Commitments (including, once funded, all
Incremental Term Loans) pursuant to this Section 2.19(a) shall not exceed $200,000,000, (y) each Incremental Term Loan Commitment request shall be in a minimum amount of $25,000,000, and (z) the Borrowers may request Incremental Term
Loan Commitments a maximum of eight separate times. At the time of sending such notice, the Borrowers (in consultation with the Agent) shall specify the time period within which each existing Term Lender is requested to respond (which shall in no
event be less than ten Business Days from the date of delivery of such notice to the Term Lenders). 
 (b) Lender
Elections. Each Term Lender shall notify the Agent within the time period described in Section 2.19(a) whether or not it agrees to make an Incremental Term Loan Commitment on the terms requested and, if so, in what amount. Any Term Lender
not responding within such time period shall be deemed to have declined to participate, and no Term Lender shall have any obligation to participate. 

(c) Notification by Agent. The Agent shall notify the Borrowers and each existing Term Lender of the Term Lenders’ responses to
each request made under Section 2.19(a). To achieve the full amount of any Incremental Term Loan Commitment request, subject to the approval of the Agent (which approval shall not be unreasonably withheld), to the extent that the existing Term
Lenders decline to participate, or decline to participate in the full amount requested by the Borrowers, other consenting Eligible Assignees (each an “Additional Commitment Lender”) may become an Incremental Term Lender hereunder
and furnish an Incremental Term Loan Commitment in the amount requested by the Borrowers under Section 2.19(a) and not provided by the existing Term Lenders. 

(d) Conditions to Effectiveness of each Incremental Term Loan Commitment. As a condition precedent to the effectiveness of each
Incremental Term Loan Commitment, (i) the Borrowers shall deliver to the Agent a certificate of each Borrower dated as of the applicable Incremental Effective Date signed by an Authorized Officer of such Borrower (A) certifying and
attaching the resolutions adopted by the board of directors (or other applicable governing body) of such Borrower approving or consenting to such Incremental Term Loan Commitment, and (B) certifying that, before and after giving effect to such
Incremental Term Loan Commitment, the representations and warranties contained in Article V hereof and the other Loan Documents are true and correct in all material respects on and as of the Incremental Effective Date, except to the extent
(1) such representations or warranties are qualified by a materiality standard, in which case they shall be true and correct in all respects, and (2) such representations or warranties expressly relate to an earlier date (in which case
such representations and warranties shall be true and correct in all material respects as of such earlier date), (ii) the Borrowers, the Agent, each Term Lender providing an Incremental Term Loan Commitment (including each Additional Commitment
Lender, if any) shall have executed and delivered an amendment (each, an “Incremental Amendment”) to this Agreement (which amendment shall not require the consent of any other Lender) in such form as the Agent shall reasonably
require to establish such Incremental Term Loan Commitment; provided, that any Incremental Term Loans made pursuant to such Incremental Term Loan Commitments (A) except as to amortization, final maturity date and participation in
mandatory prepayments (which shall, subject to the other clauses of this proviso, be determined by the Borrower and the Incremental Term Lenders in their sole discretion), shall have (x) the same terms as the Term Loans made on the Effective
Date (or any other Class of Incremental Term Loans) and form part of the same Class as such Term Loans or (y) such other terms as shall be reasonably satisfactory to the Agent, in which case they shall be part of a separate Class;
(B) shall have a maturity date no earlier than the Termination Date, (C) shall, if subject to amortization, not amortize prior to the Termination Date, and (D) may participate on a pro rata basis or a less than pro rata basis (but not
a greater than pro rata basis) than the Term Loans borrowed on the Effective Date in any mandatory or voluntary 

  
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prepayment hereunder (and shall not otherwise be mandatorily or voluntarily prepayable); (iii) the Borrowers shall have paid such fees to the Additional Commitment Lenders and the other Term
Lenders who agree to provide such Incremental Term Loans, as the Borrowers and such Lenders may agree; (iv) the Borrowers shall deliver to the Agent and the Term Lenders an opinion or
opinions, in form and substance reasonably satisfactory to the Agent, from counsel to the Borrowers reasonably satisfactory to the Agent and dated such date; and (vi) no Default or Event of Default shall exist or result therefrom. 

(e) Effectiveness of Incremental Amendments; Conflicting Provisions. The Agent shall promptly notify each Lender as to the effectiveness
of each Incremental Amendment (such date of effectiveness, the “Incremental Effective Date”). Each of the parties hereto hereby agrees that this Agreement and the other Loan Documents may be amended pursuant to an Incremental
Amendment, without the consent of any other Lenders, to the extent necessary to (i) reflect the existence and terms of the Incremental Term Loan Commitments and the Incremental Term Loans incurred pursuant thereto and (ii) effect such
other amendments to this Agreement and the other Loan Documents as may be necessary or appropriate, in the reasonable opinion of the Agent and the Borrowers, to effect the provisions of this Section 2.19. This Section 2.19 shall supersede
any provisions in Sections 2.16 or 9.01 to the contrary. 
 ARTICLE III 

RESERVED 
 ARTICLE IV 

CONDITIONS TO EFFECTIVENESS 

SECTION 4.01. Conditions Precedent to Effectiveness. The effectiveness of this Agreement is conditioned upon satisfaction of the
following conditions precedent: 
 (a) The Agent’s receipt of the following, each of which shall be originals or telecopies (followed
promptly by originals) unless otherwise specified, each properly executed by an Authorized Officer of the signing Loan Party, each dated the Effective Date (or, in the case of certificates of governmental officials, a recent date before such date)
and each in form and substance satisfactory to the Agent: 
 (i) this Agreement duly executed by each of Holdings, the
Borrowers, the Agent, and the Lenders. 
 (ii) the Security Documents (including, without limitation, the Security
Agreement), each duly executed by the applicable Loan Parties; 
 (iii) reserved; 

(iv) such certificates of resolutions or other action, incumbency certificates and/or other certificates of Authorized Officers
of each Loan Party as the Agent may reasonably require evidencing (A) the authority of each Loan Party to enter into this Agreement and the other Loan Documents to which such Loan Party is a party or is to be a party and (B) the identity,
authority and capacity of each Authorized Officer thereof authorized to act as an Authorized Officer in connection with this Agreement and the other Loan Documents to which such Loan Party is a party or is to be a party; 

(v) copies of each Loan Party’s organization or other governing documents and such other documents and certifications as
the Agent may reasonably require to evidence that each Loan Party is duly organized or formed, and that each Loan Party is validly existing, in good standing and qualified to engage in business in each jurisdiction where failure to so qualify could
reasonably be expected to have a Material Adverse Effect; 

  
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 (vi) an opinion of in house counsel to Holdings and of one or more special or
local counsel to Holdings, the Borrowers, and the other Loan Parties, addressed to the Agent and each Lender as to such matters as the Agent may reasonably request; 

(vii) a certificate signed by an Authorized Officer of Holdings and the Borrowers certifying (A) that the conditions
specified in Section 4.02 have been satisfied and (B) that the incurrence of the Term Loans does not conflict with (i) the indenture governing the Existing Second Lien Notes or (ii) the First Lien Credit Agreement, (B) that
the Loan Parties, taken as a whole, are Solvent as of the date hereof after giving effect to the transactions contemplated hereby and (C) that the Perfection Certificate is true and correct in all material respects; and 

(viii) such other customary certificates, documents or consents as the Agent reasonably may require. 

(b) all actions required by law or reasonably requested by the Collateral Agent or the Agent to be undertaken, and all, documents and
instruments, including Uniform Commercial Code financing statements, required by law or reasonably requested by the Collateral Agent or the Agent to be filed, registered, or recorded to create or perfect the Liens intended to be created under the
Loan Documents and all such documents and instruments shall have been so filed, registered or recorded to the satisfaction of the Agent 

(c) Reserved. 
 (d) Reserved. 

(e) Reserved. 
 (f) Reserved. 

(g) Reserved. 
 (h) The conditions
set forth in Section 4.02 shall be satisfied. 
 (i) There shall have been no event or circumstance since January 30, 2016 that has
had or could reasonably be expected to have, either individually or in the aggregate, a Material Adverse Effect. 
 (j) All fees required to
be paid to the Agent on or before the Effective Date shall have been paid in full, and all fees required to be paid to the Lenders on or before the Effective Date shall have been paid in full. 

(k) The Borrowers shall have paid all costs and expenses of the Agent (to the extent set forth in Section 9.04(a)) incurred in connection
with or relating to this Agreement and the other Loan Documents, including reasonable fees, charges and disbursements of counsel to the Agent, to the extent invoiced prior to or on the Effective Date, (provided that such payment shall not thereafter
preclude a final settling of accounts between the Borrowers and the Agent). 
 SECTION 4.02. Conditions Precedent to Each Extension of
Credit. The obligation of each Lender to make an Extension of Credit on any date shall be subject to the conditions precedent that, with respect to Term Loans, the effectiveness of this
Agreement and, with respect to Line of Credit Loans, the First Amendment Effective Date, shall have occurred and on the date of such Extension of Credit the following statements shall be
true (and (i) in the case of Term Loans, each of the giving of the applicable Noticenotice of
Borrowingborrowing and the acceptance by the applicable Borrower of the proceeds of such Borrowing
shalland (ii) in the case of Line of Credit Loans, each of the delivering of the applicable Line of Credit Loan Proposal and the acceptance by the applicable Borrower of
the proceeds of such Line of Credit Loan, shall in each case constitute a representation and warranty by the applicable Borrower that on the date of such Borrowing
or Line of Credit Loan, as applicable, such statements are true): 

  
 41 

 (i) the representations and warranties made by each Loan Party in or pursuant to
the Loan Documents are true and correct on and as of such date in all material respects, before and after giving effect to such Extension of Credit and to the application of the proceeds therefrom, as though made on and as of such date, except to
the extent that (A) such representations or warranties are qualified by a materiality standard, in which case they shall be true and correct in all respects, (B) such representations or warranties expressly relate to an earlier date (in
which case such representations and warranties shall be true and correct in all material respects as of such earlier date), and (C) such representations relate to Section 5.01(f), in which case the representation shall be limited to clause
(c) of the definition of “Material Adverse Effect”; 
 (ii) no event has occurred and is continuing, or would
result from such Extension of Credit or from the application of the proceeds therefrom, that constitutes a Default or an Event of Default; and 

(iii) after giving effect to such Extension of Credit, (A) the sum of the Total Extensions of Credit will not exceed the
Borrowing Base, and (B) no Collateral Coverage Event (as defined in the Indenture for the Existing Second Lien Notes) shall result therefrom. 

The conditions set forth in this Section 4.02 are for the sole benefit of the Credit Parties. 

ARTICLE V 
 REPRESENTATIONS AND
WARRANTIES 
 SECTION 5.01. Representations and Warranties of the Borrowers. Holdings and the Borrowers hereby jointly and severally
represent and warrant as follows: 
 (a) Each Loan Party (i) is duly organized, validly existing and in good standing under the laws of
the jurisdiction of its organization and (ii) is in compliance with all Requirements of Law except to the extent that the failure to comply therewith could not, in the aggregate, reasonably be expected to have a Material Adverse Effect. 

(b) The execution, delivery and performance by each Loan Party of the Loan Documents to which it is a party, and the consummation of the
transactions contemplated hereby or thereby, are within such Loan Party’s powers, have been duly authorized by all necessary organizational action, and do not contravene (i) the charter or by-laws or other organizational or governing
documents of such Loan Party or (ii) law or any contractual restriction binding on or affecting any Loan Party, except, for purposes of this clause (ii), to the extent such contravention would not reasonably be expected to have a Material
Adverse Effect. 
 (c) No authorization or approval or other action by, and no notice to or filing with, any governmental authority or
regulatory body or any other third party is required for the due execution, delivery and performance by any Loan Party of any Loan Document to which it is a party that has not already been obtained if the failure to obtain such authorization,
approval or other action could reasonably be expected to result in a Material Adverse Effect. 
 (d) Each Loan Document has been duly
executed and delivered by each Loan Party party thereto. This Agreement constitutes, and each other Loan Document will constitute upon execution, the legal, valid and binding obligation of each Loan Party party thereto enforceable against such Loan
Party in accordance with its respective terms subject to the effect of any applicable bankruptcy, insolvency, reorganization or moratorium or similar laws affecting the rights of creditors generally and subject to general principles of equity
(regardless of whether enforcement is sought in a proceeding at law or in equity). 
 (e) The consolidated balance sheet of Holdings and its
Subsidiaries as at January 30, 2016,2017, and the related consolidated statements of income and cash flows of Holdings and its Subsidiaries for the fiscal year then
ended, accompanied by an opinion of Deloitte & Touche LLP, independent public accountants, copies 

  
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of which have been furnished to the Agent, fairly present the consolidated financial condition of Holdings and its Subsidiaries as at such date and the consolidated results of the operations of
Holdings and its Subsidiaries for the period ended on such date, all in accordance with GAAP consistently applied. 
 (f) Since
January 30, 2016, there has been no event or circumstance, either individually or in the aggregate, that has had or would reasonably be expected to have a Material Adverse Effect. 

(g) There is no action, suit, investigation, litigation or proceeding, including any Environmental Action, which is pending or, to Holdings or
any Borrower’s knowledge, threatened affecting Holdings, the Borrowers or any of their respective Subsidiaries before any court, Governmental Authority or arbitrator that would, either individually or in the aggregate, reasonably be expected to
have a Material Adverse Effect other than as reported in filings with the SEC made prior to the date hereof. 
 (h) On the Effective Date and
the date on which any Incremental Term Loans are borrowed, not more than five (5%) percent of the value of the assets of the Borrowers and their respective Subsidiaries on a consolidated basis will be margin stock (within the
meaning of Regulation U issued by the Board of Governors of the Federal Reserve System). 
 (i) No Loan Party is an “investment
company”, or a company “controlled” by an “investment company”, within the meaning of the Investment Company Act of 1940, as amended. 

(j) All United States Federal income tax returns and all other material tax returns which are required to be filed have been filed by or on
behalf of Holdings, the Borrowers and their respective Subsidiaries, and all taxes due with respect to Holdings, the Borrowers and their respective Subsidiaries pursuant to such returns or pursuant to any assessment received by Holdings, the
Borrowers or any Subsidiary have been paid except to the extent permitted in Section 6.01(b). The charges, accruals and reserves on the books of Holdings, the Borrowers and their Subsidiaries in respect of taxes or other governmental charges
have been made in accordance with, and to the extent required by, GAAP. 
 (k) All written factual information heretofore furnished by
Holdings, the Borrowers or their Subsidiaries to the Agent or any Lender (including the Perfection Certificate) for purposes of or in connection with this Agreement or any other Loan Document, taken as a whole, was true and correct in all material
respects on the date as of which such information was stated or certified, provided that with respect to projected financial information, the Loan Parties represent only that such information was prepared in good faith based upon assumptions
believed to be reasonable at the time. 
 (l) (i) Each Loan Party has title in fee simple to, or a valid leasehold interest in, all its real
property, and good title to, or a valid leasehold interest in, all its other property necessary for the conduct of its business and except as, in the aggregate, would not reasonably be expected to have a Material Adverse Effect, and (ii) no
Inventory, Credit Card Account Receivable, DC or Related Intellectual Property is subject to any Lien except as permitted by Section 6.02(a). 

(m) Except as, in the aggregate, would not reasonably be expected to have a Material Adverse Effect: (i) each Loan Party owns, or is
licensed to use, all Intellectual Property necessary for the conduct of its business as currently conducted; (ii) no material claim has been asserted and is pending by any Person challenging or questioning the use of any Intellectual Property
or the validity or effectiveness of any Intellectual Property, nor do Holdings or the Borrowers know of any valid basis for any such claim; and (iii) the use of Intellectual Property by each Group Member does not infringe on the rights of any
Person in any material respect. 
 (n) Except as disclosed in the publicly available reports of Holdings filed with the SEC prior to the
Effective Date or as would not reasonably be expected to result in a Material Adverse Effect, (i) neither a Reportable Event nor a failure to meet minimum required contributions (in accordance with Section 430 or any prior applicable
section of the Internal Revenue Code or Section 302 of ERISA) has occurred during the five year period prior to the date on which this representation is made or deemed made with respect to any Plan, (ii) each Plan is in compliance with the
applicable provisions of ERISA, the Internal Revenue Code and other applicable federal or state 

  
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laws, and (iii) no termination of a Single Employer Plan has occurred. Except as set forth on Schedule 5.01(n), no Lien imposed under the Internal Revenue Code or ERISA exists on
account of any Plan, and no Lien in favor of the PBGC or a Plan has arisen, during such five-year period ending on the Effective Date. Each Single Employer Plan that is intended to qualify
under Section 401(a) of the Internal Revenue Code has received a favorable determination letter from the United States Internal Revenue Service (the “IRS”) and, to the best knowledge of Holdings and the Borrowers, nothing has
occurred which would cause the loss of, such qualification. Except as set forth on Schedule 5.01(n) or as would not reasonably be expected to result in a Material Adverse Effect, the Loan Parties and each ERISA Affiliate have made all
required contributions to each Plan subject to Section 430 of the Internal Revenue Code, and no application for a funding waiver or an extension of any amortization period pursuant to Section 430 of the Internal Revenue Code has been made
with respect to any Plan. There are no pending or, to the best knowledge of Holdings and the Borrowers, threatened claims, actions or lawsuits, or action by any Governmental Authority, with respect to any Plan that would reasonably be expected to
have a Material Adverse Effect. There has been no prohibited transaction or violation of the fiduciary duty rules with respect to any Plan that has resulted or could reasonably be expected to result in a Material Adverse Effect. No ERISA Event has
occurred or is reasonably expected to occur, in each case that would reasonably be expected to result in a Material Adverse Effect. Neither any Loan Party nor any ERISA Affiliate has incurred, or would reasonably be expected to incur, any liability
under Title IV of ERISA with respect to any Pension Plan, other than premiums due and not delinquent under Section 4007 of ERISA or as would not reasonably be expected to have a Material Adverse Effect; neither any Loan Party nor any ERISA
Affiliate has incurred, or reasonably expects to incur, any liability (and, to the knowledge of the Borrowers, no event has occurred which, with the giving of notice under Section 4219 of ERISA, would result in such liability) under Sections
4201 or 4243 of ERISA with respect to a Multiemployer Plan except as would not reasonably be expected to have a Material Adverse Effect; and neither any Loan Party nor any ERISA Affiliate has engaged in a transaction that would reasonably be
expected to be subject to Sections 4069 or 4212(c) of ERISA. Except as would not reasonably be expected to have a Material Adverse Effect, neither Holdings, the Borrowers nor any Commonly Controlled Entity has had a complete or partial withdrawal
(as such terms are defined in Sections 4203 and 4205 of ERISA, respectively) from any Multiemployer Plan that has resulted or would reasonably be expected to result in a liability under ERISA. No such Multiemployer Plan is in Reorganization or
Insolvent except as would not reasonably be expected to result in aggregate liability to Holdings and its Subsidiaries of $100,000,000 or more. 

(o) Except as, individually or in the aggregate, would not reasonably be expected to result in a Material Adverse Effect, no Group Member
(i) has failed to comply with any Environmental Law or to obtain, maintain or comply with any permit, license or other approval required under any Environmental Law, (ii) has become subject to any Environmental Liability, (iii) has
received notice of any claim with respect to any Environmental Liability or (iv) knows of any basis for any Environmental Liability. 

(p) The Security Agreement is effective to create in favor of the Collateral Agent, for the benefit of the Credit Parties, a legal, valid and
enforceable security interest in the Collateral described therein and proceeds thereof. Financing statements and other filings specified in Schedule 5.01(p) in appropriate form have been filed in the offices set forth on Schedule 5.01(p). On the
Effective Date, the security interests granted pursuant to the Security Agreement shall, to the extent a security interest in such Collateral can be perfected by filing a UCC financing statement, constitute a fully perfected Lien on, and security
interest in, all right, title and interest of the Loan Parties in such Collateral and the proceeds thereof, as security for the Obligations, in each case prior and superior in right to the Lien or claim of any other Person (except Liens permitted by
Section 6.02(a) securing Priority Obligations and/or the Existing Second Lien Notes and Liens which by operation of law would have priority over the Liens securing the Obligations). 

(q) The Loan Parties, taken as a whole, are, and after giving effect to the incurrence of all Debt and obligations incurred in connection
herewith will be, Solvent. 
 (r) The properties of the Loan Parties are insured as required pursuant to Section 6.01(c) hereof. Each
insurance policy required to be maintained by the Loan Parties pursuant to Section 6.01(c) is in full force and effect and all premiums in respect thereof that are due and payable have been paid. 

(s) As of the Effective Date: (1) except as listed on Schedule 5.01(s), there are no outstanding rights to purchase any equity interests
in any Subsidiary of a Loan Party, and (2) the copies of the organization and governing documents of each Loan Party and each amendment hereto provided pursuant to Section 4.01 are true and correct copies of each such document, each of
which is valid and in full force and effect. 
  

  
 44 

 (t) As of the Effective Date, except as would not reasonably be expected to have individually or
in the aggregate, a Material Adverse Effect, (a) there are no strikes, lockouts, slowdowns or other material labor disputes against any Loan Party or any Subsidiary thereof pending or, to the knowledge of Holdings or any Borrower, threatened,
(b) the hours worked by and payments made to employees of the Loan Parties comply with the Fair Labor Standards Act and any other applicable federal, state, local or foreign law dealing with such matters, (c) all payments due from any Loan
Party and its Subsidiaries, or for which any claim may be made against any Loan Party, on account of wages and employee health and welfare insurance and other benefits, have been paid or properly accrued in accordance with GAAP as a liability on the
books of such Loan Party. Except as set forth on Schedule 5.01(t) (as updated by the Borrowers from time to time) (i) no Loan Party or any Subsidiary is a party to or bound by any collective bargaining agreement, management agreement or
any material bonus, restricted stock, stock option, or stock appreciation plan or agreement or any similar plan, agreement or arrangement (excluding in each case individual employment agreements) and (ii) no employee of a Loan Party is also an
employee of the Permitted Holder. There are no representation proceedings pending or, to the knowledge of Holdings or any Borrower, threatened to be filed with the National Labor Relations Board, and no labor organization or group of employees of
any Loan Party or any Subsidiary has made a pending demand for recognition, in each case which would individually or in the aggregate reasonably be expected to result in a Material Adverse Effect. There are no complaints, unfair labor practice
charges, grievances, arbitrations, unfair employment practices charges or any other claims or complaints against any Loan Party or any Subsidiary pending or, to the knowledge of Holdings or any Borrower, threatened to be filed with any Governmental
Authority or arbitrator based on, arising out of, in connection with, or otherwise relating to the employment or termination of employment of any employee of any Loan Party or any of its Subsidiaries which would, individually or in the aggregate, be
reasonably expected to result in a Material Adverse Effect. The consummation of the transactions contemplated by the Loan Documents will not give rise to any right of termination or right of renegotiation on the part of any union under any
collective bargaining agreement to which any Loan Party or any of its Subsidiaries is bound, except as would not reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect. 

(u) No broker or finder brought about the obtaining, making or closing of the Term
LoanLoans or this Agreement or transactions contemplated by the Loan Documents, and no Loan Party or Affiliate thereof has any obligation to any Person in respect of any
finder’s or brokerage fees in connection therewith. 
 (v) Reserved. 

(w) To the extent applicable, each Loan Party is in compliance, in all material respects, with (i) the United States Trading with the
Enemy Act, as amended, and each of the foreign assets control regulations of the United States Treasury Department (31 C.F.R., Subtitle B, Chapter V, as amended) and any other enabling legislation or executive order relating thereto, (ii) the
PATRIOT Act, (iii) the United States Foreign Corrupt Practices Act of 1977, and (iv) the Corruption of Foreign Public Officials Act, as amended (the “FCPA”). No part of the proceeds of any credit extensions will be used, directly
or, to the Loan Parties’ knowledge, indirectly, for any payments to any governmental official or employee, political party, official of a political party, candidate for political office, or anyone else acting in an official capacity, in order
to obtain, retain or direct business or obtain any improper advantage, in violation of the FCPA. 
 (x) None of Holdings, the Borrowers, nor
any of their respective Subsidiaries, nor, to the knowledge of the Borrowers, any director, officer, employee, agent or affiliate of the Borrowers is an individual or entity (for purposes of this clause (x), a “Person”) that is, or
is owned or controlled by Persons that are the subject of any sanctions (A) administered or enforced by the U.S. Department of the Treasury’s Office of Foreign Assets Control, the United Nations Security Council, the European Union, Her
Majesty’s Treasury or other applicable sanctions authority or (B) pursuant to the U.S. Iran Sanctions Act, as amended, or Executive Order 13590 (collectively, “Sanctions”) or (C) located, organized or resident in a country
or territory that is, or whose government is, the subject of Sanctions (including, without limitation, Burma/Myanmar, Iran, North Korea, Sudan and Syria). The Loan Parties will not, directly or, to their knowledge, indirectly, use the proceeds of
any credit extensions, or lend, contribute or otherwise make available such proceeds to any Subsidiary, joint venture partner or other Person in any manner that would directly or indirectly result in a violation of Sanctions by any Person. 

  
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 (xiy) As of the
First Amendment Effective Date, each Person (other than A&E Factory Service, LLC) that has provided a guarantee of any First Lien Credit Agreement Obligations is a
Guarantor hereunder and has executed the Security Agreement as a “Grantor” thereunder (as such term is defined in the Security Agreement). 

ARTICLE VI 
 COVENANTS 

SECTION 6.01. Affirmative Covenants. So long as any Term Loan or other Obligation (other than contingent
indemnification obligations for which no claim shall have then been asserted) shall remain unpaid or any Term Lender shall have any Commitment hereunder, each of Holdings and the Borrowers
will, and will cause each of their Subsidiaries to: 
 (a) Compliance with Laws, Etc. Comply in all respects with all applicable
Requirements of Law, such compliance to include compliance with ERISA and Environmental Laws, except for such non-compliance as would not reasonably be expected to have a Material Adverse Effect. 

(b) Payment of Taxes, Etc. Pay and discharge before the same shall become delinquent, (i) all taxes, assessments and governmental
charges or levies imposed upon it or upon its property (ii) all payments required to be made to any Pension Plan, and (iii) all lawful claims that, if unpaid, might by law become a Lien upon its property; provided that neither
Holdings, the Borrowers nor any of their Subsidiaries shall be required to pay or discharge any such tax, assessment, charge or claim (x) that is being contested in good faith and by proper proceedings and as to which appropriate reserves are
being maintained, unless and until any Lien resulting therefrom attaches to its property and becomes enforceable against its other creditors or (y) if such non-payments, either individually or in the aggregate, would not be reasonably expected
to have a Material Adverse Effect. 
 (c) Maintenance of Insurance. Maintain insurance with responsible and reputable insurance
companies or associations in such amounts and covering such risks as is consistent with prudent business practice; provided that Holdings, the Borrowers and their Subsidiaries may self-insure to the extent consistent with prudent business
practice; provided further that policies maintained with respect to any Collateral located at a warehouse or DC shall provide coverage for Inventory at (x) the retail selling price of such Inventory less any permanent markdowns,
consistent with the Loan Parties’ past practices, or (y) another selling price permitted by the Agent in its Permitted Discretion. None of the Credit Parties shall be a co-insurer with any Loan Party or any other Person with respect to any
fire and extended coverage policies maintained with respect to any Collateral without the prior written consent of the Agent. Within thirty (30) days following delivery of written notice from the Agent to Holdings, Holdings shall notify the
insurers and use commercially reasonable efforts to have such policies amended to include such other provisions as the Agent may reasonably require from time to time to protect the interests of the Credit Parties. Holdings shall cause the Agent to
be named as an additional insured party on such policies within thirty (30) days following the Effective Date (or such longer period as the Agent may agree to in its reasonable discretion). The Borrowers shall deliver to the Agent, prior to the
cancellation, modification or non-renewal of any such policy of insurance, evidence of renewal or replacement of a policy previously delivered to the Agent, including an insurance binder therefor, together with evidence satisfactory to the Agent of
payment of the premium therefor and, upon request of the Agent, a copy of such renewal or replacement policy. In the event that the Borrowers fail to maintain any such insurance as required pursuant to this Section 6.01(c), the Agent may obtain
such insurance on behalf of the Borrowers and the Loan Parties shall reimburse the Agent as provided herein for all costs and expenses in connection therewith; the Agent’s obtaining of such insurance shall not be deemed a cure or waiver of any
Default or Event of Default arising from the Loan Parties’ failure to comply with the provisions of this Section 6.01(c). 
 (d)
Preservation of Corporate Existence, Etc. Preserve and maintain its corporate existence, material rights (charter and statutory) and franchises; provided that (i) Holdings, the Borrowers and their Subsidiaries may consummate any
merger or consolidation permitted under Section 6.02(b); (ii) neither Holdings nor the Borrowers nor any of their Subsidiaries shall be required to preserve or maintain the corporate existence of any Subsidiary (other than Sears, SRAC,
Kmart Corp. or any Material Subsidiary Guarantors) if the Board of Directors of the parent of such Subsidiary, or an executive officer of such parent to whom such Board of Directors has delegated the requisite authority, shall determine that the
preservation and maintenance thereof is no longer desirable in the conduct of the business of such parent and that the loss thereof is not disadvantageous in any material respect to the 

  
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Borrowers, Sears, any Material Subsidiary Guarantor, such parent or the Lenders; (iii) Sears shall not be required to preserve or maintain the corporate existence of SRAC, provided that in
the event SRAC is dissolved, merged with or into Holdings or any Subsidiary of Holdings or otherwise ceases to exist, then Sears shall or shall cause a direct wholly owned Domestic Subsidiary of Sears to, execute and deliver to the Agent an
assumption agreement with respect to SRAC’s obligations under the Loan Documents in form and substance reasonably satisfactory to the Agent and such other officer certificates, legal opinions, financing statements (if applicable) and
documentation as the Agent reasonably requests; (iv) none of Holdings, the Borrowers or any of Material Subsidiary Guarantors shall be required to preserve any right or franchise of any Subsidiary (other than a Material Subsidiary Guarantor) if
the Board of Directors of Holdings, such Borrower or such Material Subsidiary Guarantor shall determine that the preservation thereof is no longer desirable in the conduct of its business and that the loss thereof is not disadvantageous in any
material respect to Holdings, the Borrowers, such Material Subsidiary Guarantor or the Lenders and (v) no Subsidiary Guarantor which is not a Material Subsidiary Guarantor shall be required to preserve or maintain its corporate existence if
(A) no Default or Event of Default has occurred and is continuing, and (B) such Subsidiary Guarantor is merged or liquidated into another Subsidiary Guarantor. 

(e) Inspection Rights. Subject to reasonable confidentiality limitations and requirements imposed by Holdings or the Borrowers due to
competitive concerns or otherwise, at any reasonable time and from time to time (but no more than twice a year unless a Default or an Event of Default has occurred and is continuing), permit the Agent or any of the Lenders or any agents or
representatives thereof, at the Lenders’ expense, to examine and make copies of and abstracts from the records and books of account of, and visit the properties of, Holdings, the Borrowers and any of their Subsidiaries, and to discuss the
affairs, finances and accounts of Holdings, the Borrowers and any of their Subsidiaries, as the case may be, with any of their officers or directors and with their independent certified public accountants. 

(f) Keeping of Books. Keep proper books of record and account, in which full and correct entries shall be made of all financial
transactions and the assets and business of Holdings, the Borrowers and each such Subsidiary in accordance with GAAP in effect from time to time. 

(g) Maintenance of Properties, Etc. Except as otherwise permitted pursuant to Section 6.02(b), or where the failure to do so,
either individually or in the aggregate, would not be reasonably expected to have a Material Adverse Effect, maintain and preserve all of its properties that are used or useful in the conduct of its business in good working order and condition,
ordinary wear and tear excepted. 
 (h) Transactions with Affiliates. Conduct all transactions otherwise permitted under this
Agreement with any of their Affiliates on terms that are fair and reasonable and no less favorable to Holdings, the applicable Borrower or their respective Subsidiaries than it would obtain in a comparable arm’s-length transaction with a Person
not an Affiliate other than (i) as required by any applicable Requirement of Law, (ii) so long as no Default or Event of Default has occurred and is continuing, transactions between or among the Loan Parties and any of their Subsidiaries,
to the extent not prohibited hereunder, or (iii) if a Default or Event of Default has occurred and is continuing, transactions in the ordinary course of business between or among the Loan Parties and any of their Subsidiaries and transactions
between or among Loan Parties, to the extent not prohibited hereunder; provided, that the foregoing shall not prohibit (i) any Loan Party or any Subsidiary thereof from entering into employment arrangements with its officers and
retention and other agreements with officers and directors pursuant to the reasonable requirements of its business or (ii) any transactions pursuant to the agreements in effect on the date
hereofEffective Date. 
 (i) Further Assurances. 

(i) With respect to any (i) Inventory, Credit Card Accounts Receivable and other Collateral acquired after the Effective
Date by any Group Member that is or is required to become a Loan Party hereunder and (ii) any property required to become subject to a perfected Lien in favor of the Collateral Agent pursuant to Section 6.02(a)(vi) hereunder, promptly
(i) execute and deliver to the Collateral Agent such amendments to the Security Agreement or such other documents as the Agent or the Collateral Agent, may reasonably request in order to grant to the Collateral Agent, for the benefit of the
Credit Parties, a security interest in such property and (ii) take all actions as the Agent, may reasonably request to grant to the Collateral Agent, for the benefit of the Credit Parties, 

  
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a perfected security interest in such property with the priority required herein, including the filing of Uniform Commercial Code financing statements in such jurisdictions as may be required by
the Security Documents or by law or as may be requested by the Agent or the Collateral Agent; provided, however, that notwithstanding anything to the contrary in this Agreement, the Borrowers shall not be required to deliver any blocked account
agreement, deposit account control agreement or similar agreement, or provide any notices to any credit card processor or third-party payors (nor shall the Agent provide any such notice). 

(ii) With respect to any new Domestic Subsidiary (other than any Credit
Card Royalty Securitization Subsidiary) which is created or acquired after the Effective Date by any Group Member and which owns any Inventory, Credit Card Accounts Receivable and other Collateral related to such receivables and Inventory, or
which guarantees any Priority Obligations, promptly cause such new Domestic Subsidiary to (i) become a party to this Agreement pursuant to Section 10.08 hereof, (ii) become a party to the Security Agreement, (iii) take such
actions as the Agent, may reasonably request to grant to the Collateral Agent for the benefit of the Credit Parties a security interest, with the priority and perfection required herein, in the Collateral described in the Security Agreement held by
such new Domestic Subsidiary, including, to the extent applicable, the filing of Uniform Commercial Code financing statements in such jurisdictions as may be required by the Security Agreement or by law or as may be reasonably requested by the
Agent, (iv) if requested by the Agent, deliver to the Agent an officer’s certificate with respect to such Domestic Subsidiary in form and substance reasonably satisfactory to the Agent, and (v) if requested by Agent, deliver to the
Agent legal opinions relating to the matters described above, which opinions shall be in form and substance, and from counsel, reasonably satisfactory to the Agent. 

(j) Reporting Requirements. Furnish to the Agent: 

(i) as soon as available and in any event within 50 days after the end of each of the first three fiscal quarters of each
fiscal year of Holdings, (a) the consolidated balance sheet of Holdings and its Subsidiaries and the consolidated balance sheet of Holdings and its domestic Subsidiaries as of the end of such quarter and consolidated statements of income and
cash flows of Holdings and its Subsidiaries and the consolidated statements of income and cash flows of Holdings and its domestic Subsidiaries for the period commencing at the end of the previous fiscal year and ending with the end of such quarter,
duly certified (subject to year-end audit adjustments) by an Authorized Officer of Holdings as having been prepared in accordance with GAAP and (b) (1) a certificate of an Authorized Officer of Holdings as to compliance with the terms of
this Agreement and the other Loan Documents in the form of Exhibit I, including in reasonable detail the calculations necessary to determine the Fixed Charge Ratio (whether or not compliance therewith is then required under
Section 6.03), provided that in the event of any change in GAAP used in the preparation of such financial statements, subject to Section 1.03, the Borrowers shall also provide, if necessary for the calculation of the Fixed Charge
Ratio, a statement of reconciliation conforming such financial statements to GAAP (the Borrowers being permitted to satisfy the requirements of clause (i)(a) by delivery, in the manner provided in Section 9.02(b), of its quarterly report on
form 10-Q (or any successor form), as filed with the SEC) and (2) a Collateral Coverage Certificate (which may be incorporated in the Compliance Certificate contemplated by clause (1) above); 

(ii) as soon as available and in any event within 95 days after the end of each fiscal year of Holdings, (a) a copy of the
annual audit report for such year for Holdings and its Subsidiaries, containing the consolidated balance sheet of Holdings and its Subsidiaries as of the end of such fiscal year and consolidated statements of income and cash flows of Holdings and
its Subsidiaries for such fiscal year, in each case reported on without a “going concern” or like qualification or exception, or qualification arising out of the scope of the audit, by its Board-appointed auditor of national standing
(b) a consolidated balance sheet of Holdings and its domestic Subsidiaries as of the end of such fiscal year and consolidated statements of income and cash flows of Holdings and its domestic Subsidiaries for such fiscal year duly certified by
an Authorized Officer of Holdings as having been prepared in accordance with GAAP, and (c) (1) a certificate of an Authorized Officer of Holdings as to compliance with the terms of this Agreement

  
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and the other Loan Documents in the form of Exhibit I, including in reasonable detail the calculations necessary to determine the Fixed Charge Ratio (whether or not compliance therewith is
then required under Section 6.03), provided that in the event of any change in GAAP used in the preparation of such financial statements, the Borrowers shall also provide, if necessary for the calculation of the Fixed Charge Ratio, a
statement of reconciliation conforming such financial statements to GAAP (the Borrowers being permitted to satisfy the requirements of clause (ii)(a) by delivery, in the manner provided in Section 9.02(b), of its annual report on form 10-K (or
any successor form), as filed with the SEC) and (2) a Collateral Coverage Certificate (which may be incorporated in the Compliance Certificate contemplated by clause (1) above); 

(iii) as soon as available and in any event within 10 Business Days of the end of each fiscal month (and, if any fiscal quarter
does not end on the last day of a fiscal month, within 10 Business Days of the end of such fiscal quarter), a Borrowing Base Certificate as of the end of the preceding fiscal month (or, as applicable, fiscal quarter) and supporting information
satisfactory to the Agent in its Permitted Discretion with respect to the determination of the Borrowing Base; provided, that upon the occurrence and during the continuance of an Accelerated Borrowing Base Delivery Event, such
Borrowing Base Certificate and supporting information shall be delivered on Friday of each week (or, if Friday is not a Business Day, on the next succeeding Business Day), as of the close of business on the immediately preceding Saturday (and within
10 Business Days of the end of each fiscal quarter with respect to the last day of such fiscal quarter); 
 (iv) promptly and
in any event within five days after any Authorized Officer of Holdings or any Borrower has knowledge of the occurrence and continuance of a Default or Event of Default, a statement of an Authorized Officer of Holdings or such Borrower setting forth
details of such Default or Event of Default and the action that Holdings or such Borrower has taken and proposes to take with respect thereto; 

(v) promptly after the sending or filing thereof, copies of all quarterly and annual reports and proxy solicitations that
Holdings sends to its public security holders generally, and copies of all reports on form 8-K (or its equivalent) and registration statements for the public offering (other than pursuant to employee Plans) of securities that Holdings or any of its
Subsidiaries files with the SEC or any national securities exchange; 
 (vi) promptly after the commencement thereof, notice
of all actions and proceedings before any court, governmental agency or arbitrator affecting Holdings, the Borrowers or any of their Subsidiaries of the type described in Section 5.01(g); 

(vii) as soon as available, but in any event no later than 60 days after the end of each fiscal year of Holdings, forecasts
prepared by management of Holdings for Holdings and its domestic Subsidiaries in form satisfactory to the Agent and containing information reasonably required by the Agent; 

(viii) (A) contemporaneously with the delivery of the reports required pursuant to clauses (i) and (ii) above, a
report (which may take the form of a footnote to Holdings’ quarterly and annual reports filed with the SEC and delivered to the Agent) setting forth the estimated Unfunded Pension Liability of Holdings and its Subsidiaries, and
(B) promptly after receipt thereof by the Loan Parties, a copy of the funded status report received from the Loan Parties’ actuaries with respect to amounts to be funded under the Loan Parties’ Pension Plan; 

(ix) promptly, notice of any event that the Loan Parties reasonably believes has resulted in a Material Adverse Effect; 

(x) the financial and collateral reports described on Schedule 6.01(j), at the times set forth in such Schedule; 

  
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 (xi) during the continuance of an Accelerated Borrowing Base Delivery Event, as
soon as available and in any event within 30 days after the end of each fiscal month of each fiscal year of Holdings, (a) the consolidated balance sheet of Holdings and its Subsidiaries and the consolidated balance sheet of Holdings and its
domestic Subsidiaries as of the end of such month and consolidated statements of income and cash flows of Holdings and its Subsidiaries and the consolidated statements of income and cash flows of Holdings and its domestic Subsidiaries for the period
commencing at the end of the previous fiscal year and ending with the end of such month, duly certified (subject to year-end audit adjustments) by an Authorized Officer of Holdings as having been prepared in accordance with GAAP and (b) a
certificate of an Authorized Officer of Holdings as to compliance with the terms of this Agreement and the other Loan Documents, including in reasonable detail the calculations necessary to determine the Fixed Charge Ratio (whether or not compliance
therewith is then required under Section 6.03), provided that in the event of any change in GAAP used in the preparation of such financial statements, subject to Section 1.03, the Borrowers shall also provide, if necessary for the
calculation of the Fixed Charge Ratio, a statement of reconciliation conforming such financial statements to GAAP; and 

(xii) such other information respecting Holdings, the Borrowers or any of their Subsidiaries, or the Borrowing Base as the
Agent or any Lender through the Agent may from time to time reasonably request. 
 Reports and financial statements required
to be delivered by the Borrowers pursuant to clauses (i)(a), (ii)(a) and (v) of this subsection (j) shall be deemed to have been delivered on the date on which Holdings causes such reports, or reports containing such financial statements,
to be posted on the Internet at www.sec.gov or at such other website identified by the Borrowers in a notice to the Agent and the Lenders and that is accessible by the Lenders without charge. 

(k) Reserved. 
 (l)
Reserved. 
 (m) Cash Management.The Borrowers shall maintain in effect the cash management arrangements currently existing
pursuant to the First Lien Credit Agreement, including with respect to deposit account control agreements and credit card processors, or such other arrangements not less favorable to the Agent and the Lenders as to which the Agent may consent, such
consent not to be unreasonably withheld. 
 (n) Liens on Non-Collateral Assets. In the event of the incurrence of Debt and the
granting of a Lien pursuant to Section 6.02(a)(vi) hereof, grant, and cause each of its Subsidiaries to, grant the Collateral Agent, as security for the Obligations, a Lien on the assets of Holdings or any of its Subsidiaries which is the
subject of the Lien of the Person holding such Debt (to the extent that such assets do not then constitute Collateral) pursuant to Section 6.02(a)(vi) hereof. 

(o) Physical Inventories. Cause physical inventories and periodic cycle counts to be undertaken, at the expense of the Loan Parties, in
each case consistent with past practices (but in no event less frequently than one physical inventory per fiscal year), conducted by such inventory takers and following such methodology as is consistent with the immediately preceding inventory or as
otherwise may be satisfactory to the Agent in its Permitted Discretion. The Agent, at the expense of the Loan Parties, may participate in and/or observe each scheduled physical count of Inventory which is undertaken on behalf of any Loan Party. The
Loan Parties, within five (5) days following the completion of any such inventory, shall provide the Collateral Agent and the Agent with a reconciliation of the results of such inventory (as well as of any other physical inventory or cycle
counts undertaken by a Loan Party) and shall post such results to the Loan Parties’ stock ledgers and general ledgers, as applicable. 

(p) Reserved. 

  
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 (q) Security Documents. Holdings shall, and shall cause each other Loan Party to, and each
other Loan Party shall, make all filings (including filings of continuation statements and amendments to financing statements that may be necessary to continue the effectiveness of such financing statements) and take all other actions as are
necessary or required by the Security Documents to maintain (at the sole cost and expense of the Loan Parties) the security interest created by the Security Documents in the Collateral (other than with respect to any Collateral the security interest
in which is not required to be perfected under the Security Documents) as a perfected security interest subject only to Permitted Liens. 

(r) Post-Closing Matters. Within 15ten (10) Business
Days after the First Amendment Effective Date, cause A&E Factory Service, LLC to (i) become a party to this Agreement pursuant to Section 10.08 hereof,
(ii) become a party to the Security Agreement, (iii) take such actions (subject to extension by the Agent in its sole discretion), (1) deliver to the Agent
an opinion of in house counsel to Holdings and of one or more special or local counsel to Holdings, the Borrowers and the other Loan Parties, addressed to the Agent and each Lender as to
such matters as the Agent may reasonably request to grant to the Collateral Agent for the benefit of the Credit Parties a security interest, with the priority and perfection required herein, in the Collateral described in the Security
Agreement held by A&E Factory Service, LLC, including, to the extent applicable, the filing of Uniform Commercial Code financing statements in such jurisdictions as may be required by the Security Agreement or by law or as may be reasonably
requested by the Agent, (iv) if requested by the Agent, deliver to the Agent an officer’s certificate with respect to A&E Factory Service, LLC in form and substance reasonably
satisfactory to the Agent and (v) if requested by the Agent, deliver to the Agent legal opinions relating to the matters described above, which opinions shall be in form and substance, and from counsel, reasonably
satisfactory to the Agent, and (2) deliver to Agent results of searches or other evidence reasonably satisfactory to the Agent
(in each case dated as of a date reasonably satisfactory to the Agent) indicating the absence of Liens on the assets of the Loan Parties, except for Liens permitted by
Section 6.02(a). 
 SECTION 6.02. Negative Covenants. So long as any Obligation (other than contingent indemnification
obligations for which no claim shall have then been asserted) shall remain unpaid or any Term Lender shall have any Commitment hereunder, each of Holdings and the Borrowers will not, and
will not permit any of their Subsidiaries to: 
 (a) Liens, Etc. Create or suffer to exist any Lien upon property of Holdings, the
Borrowers or any Domestic Subsidiary constituting Inventory, Credit Card Accounts Receivable or any other Collateral or any Related Intellectual Property, other than: 

(i) Permitted Liens, 

(ii) Liens existing on the Effective Date, other than liens securing Priority Obligations, 

(iii) the replacement, extension or renewal of any Lien permitted by clause (ii) above upon or on the same property
theretofore subject thereto (and on any additions to any such property and in any property taken in replacement or substitution for any such property), or the replacement, extension or renewal (without increase in the amount) of the Debt secured
thereby, 
 (iv) to the extent any Liens permitted by clause (ii) above are terminated (and not replaced, extended or
renewed in accordance with clause (iii) above), Liens not otherwise permitted by clause (iii) above securing Debt in an amount up to the amount of Debt secured by such terminated Liens; provided that (A) any such Lien (and the
Debt secured thereby) shall be incurred no later than ninety (90) days after the termination of the Lien permitted by clause (ii) above, and (B) any such Lien shall be granted on the same property (and on any additions to such
property or any property taken by the Loan Parties in replacement or substitution for such property) as the terminated Lien, 

(v) Liens on Related Intellectual Property with Persons that have entered into an agreement, reasonably satisfactory to the
Agent, acknowledging the limited license granted to the Collateral Agent in such trademarks or trade names pursuant to the Loan Documents and agreeing to abide by, and not interfere with, such limited license; 

  
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 (vi) Liens to secure (A) the Existing Second Lien Notes and any Permitted
Refinancing Debt with respect thereto and (B) additional Debt of the Borrowers for borrowed money in an aggregate principal amount not to exceed, at any time outstanding, the difference between $2,000,000,000 and the sum of (1) the
principal amount of Debt outstanding pursuant to the preceding clause (A) and (2) the outstanding balance of the Term Loan, provided, that, (1) no Default or Event of Default then exists or would arise from the
incurrence of such Debt or the granting of such Lien, (2) Reserved, (3) such Lien shall be pari passu with or subordinate to the Lien of the Collateral Agent securing the Term Loans, and junior to the Lien securing the Priority
Obligations, in each case pursuant to arrangements reasonably satisfactory to the Agent (including without limitation through joinder to the Existing Intercreditor Agreement and/or the Security Agreement), (4) if the Debt secured by such Liens
is secured by both Collateral and by property and assets of any Loan Party which do not constitute Collateral, the Collateral Agent shall have obtained a Lien on such property and assets that do not otherwise constitute Collateral to secure the
Obligations, pari passu with the Lien of the holder of such Debt pursuant arrangements reasonably satisfactory to the Agent, and (5) the documentation granting such Lien shall be in form and substance reasonably satisfactory to the Agent in its
Permitted Discretion; and 
 (vii) Liens to secure obligations under the First Lien Credit Agreement and
other Priority Obligations, to the extent constituting Permitted Debt; and 

(viii) Liens arising under or in connection with a Credit Card Royalty
Securitization; provided that any Liens granted by a Loan Party pursuant to this clause (viii) shall be limited to Credit Card Program Assets. 

(b) Fundamental Changes. Merge into or consolidate with any other Person, or permit any other Person to merge into or consolidate with
it, or sell, transfer, lease or otherwise dispose of (in one transaction or in a series of transactions) all or substantially all of its assets (in each case, whether now owned or hereafter acquired), or liquidate or dissolve, except that, if at the
time thereof and immediately after giving effect thereto no Default or Event of Default shall have occurred and be continuing (i) any Subsidiary of any Borrower may merge into such Borrower in a transaction in which such Borrower is the
surviving entity, (ii) any Subsidiary of Holdings may merge into Holdings or any other Subsidiary of Holdings (provided that (A) if Kmart Corp. is a party to such merger, such merger shall be with Holdings, Kmart or a direct Subsidiary of
Kmart Corp. and Kmart Corp. shall be the continuing or surviving entity, (B) if any Subsidiary Guarantor is a party to such merger (other than with a Borrower or Holdings), such Subsidiary Guarantor shall be the continuing or surviving entity
or the continuing or surviving entity shall become a Subsidiary Guarantor and (C) if SRAC is a party to such merger, then Sears shall comply with the requirements of Section 6.01(d)), (iii) any Subsidiary of Holdings other than the
Borrowers may sell, transfer, lease or otherwise dispose of its assets to any Borrower, to Holdings or to a Subsidiary of Holdings (provided that if such sale or transfer includes Collateral and the transferee is not the Borrower or Holdings, the
transferee shall be a Subsidiary Guarantor), (iv) any Subsidiary of Holdings other than the Borrowers or Sears may sell, transfer, lease or otherwise dispose of its assets to a Person that is not a Subsidiary or merge with a Person that is not
a Subsidiary, in each case pursuant to a Permitted Disposition, (v) any Subsidiary of Holdings other than the Borrowers, Sears or any Material Subsidiary Guarantor (except, in the case of SRAC, as provided in Section 6.01(d)) may liquidate
or dissolve if Holdings and the Borrowers determine in good faith that such liquidation or dissolution is in the best interests of Holdings, the Borrowers, Sears, the other Material Subsidiary Guarantors and their Subsidiaries and is not
disadvantageous in any material respect to Holdings, the Borrowers, Sears, the other Material Subsidiary Guarantors or the Lenders; provided, that a Material Subsidiary Guarantor may liquidate or dissolve into a Person that is a Subsidiary of
Holdings immediately prior to such liquidation or dissolution, if the continuing or surviving entity is or shall become a Subsidiary Guarantor in accordance with Section 6.01(i)(ii), and (vi) Holdings or any Subsidiary of
Holdings may merge with a Person that is not a Subsidiary of Holdings immediately prior to such merger if, in the case of any merger involving Holdings, a Borrower or a Subsidiary Guarantor, Holdings, such Borrower or such Subsidiary Guarantor, as
applicable, is the continuing or surviving entity or, in the case of any merger involving a Subsidiary Guarantor, the continuing or surviving entity shall become a Subsidiary Guarantor in accordance with
Section 6.01(i)(ii) and (vii) any Credit Card Royalty Securitization Subsidiary may sell or otherwise finance or Dispose of the assets subject to the Credit Card Royalty
Securitization; provided that contemporaneously with (x) the occurrence of any of the actions permitted to be taken pursuant to the foregoing clauses (i) through (vi) of this clause (b) or (y) the consummation of a
Credit Card Royalty Securitization, the Borrowers shall furnish to the Collateral Agent an updated Borrowing Base Certificate. 

 

  
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 (c) Acquisitions. Make any Acquisition unless (a) at the time of any such Acquisition
and immediately after giving effect thereto, no Default or Event of Default shall have occurred and be continuing, (b) after giving effect to any such Acquisition (A) Pro Forma and Projected Capped Excess Availability is at least 15% of
the Line Cap, and (B) the Pro Forma Fixed Charge Ratio shall be at least 1.0 to 1.0, and (D) immediately after giving effect to any such Acquisition, Holdings and the Borrowers shall comply with Section 6.01(i) to the extent
applicable, (c) such Acquisition shall have been approved by the Board of Directors of the Person (or similar governing body if such Person is not a corporation) which is the subject of such Acquisition and such Person shall not have announced
that it will oppose such Acquisition or shall not have commenced any action which alleges that such Acquisition shall violate applicable law, and (d) any assets acquired shall be utilized in, and if the Acquisition involves a merger,
consolidation or acquisition of equity interests, the Person which is the subject of such Acquisition shall be engaged in, a business engaged by, or related to a business engaged by, the Loan Parties as of The Effective Date. 

(d) Restricted Payments. 

(i) Declare or make, or agree to pay or make, directly or indirectly, any Restricted Payment, if at the date of declaration
thereof (either before or immediately after giving effect thereto and the payment thereof), a Default or Event of Default shall have occurred and be continuing, except that at any time that a Default or Event of Default shall exist and be
continuing, (A) Holdings may declare and pay dividends with respect to its equity interests payable solely in additional shares of its common stock, (B) Subsidiaries of Holdings may declare and pay dividends to Holdings, the Borrowers or
another wholly owned Subsidiary of any Borrower and (C) non-wholly-owned Subsidiaries may declare and pay dividends to the holders of their equity interests other than a Group Member on a ratable basis. 

(ii) Declare or make, or agree to pay or make, directly or indirectly, any other Restricted Payment (other than a Restricted
Payment to a Loan Party), except that if no Default or Event of Default shall have occurred and be continuing (either before or immediately after giving effect thereto and the payment thereof): 

(A) Holdings and its Subsidiaries may make Restricted Payments in an aggregate amount not to exceed $1,500,000,000 from and after the
Effective Date through the Termination Date, provided, that, (i) immediately after giving effect to any such Restricted Payment, Pro Forma and Projected Capped Excess Availability is greater than 50% of the Line Cap and
(ii) Restricted Payments pursuant to this subsection (A) shall not exceed $1,000,000,000 in any rolling twelve month period; 

(B) Holdings and its Subsidiaries may make other Restricted Payments, provided, that, immediately after giving effect thereto (i) Pro
Forma and Projected Capped Excess Availability is at least 15% of the Line Cap, and (ii) the Pro Forma Fixed Charge Ratio shall be at least 1.05 to 1.0; provided, that, for purposes of the calculation of Pro Forma Fixed Charge Ratio
(x) Adjusted Consolidated EBITDA and Consolidated Interest Expense shall be computed on a trailing four quarter basis, and scheduled principal payments shall be computed on a four quarter forward basis, and (y) the amount of the Restricted
Payment paid in cash being made in connection with the calculation shall be added to Fixed Charges; 
 (C) Holdings and its Subsidiaries may
make other Restricted Payments in cash or in kind (with values equal to the amount of any cash otherwise distributable hereunder) (1) in an amount not to exceed the Net Proceeds of any common stock issuances by Holdings after the Effective
Date, (2) in an amount not to exceed the Net Proceeds of any Permitted Dispositions of the type set forth in clauses (f) and (g) of the definition thereof, and (3) in an amount not to exceed any dividends and distributions
received (directly or indirectly) on account of equity interests in any Subsidiary of Holdings which is not a Loan Party, and (4)

  
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to the stockholders of Holdings in the form of the equity interests of the subsidiaries set forth on Schedule 6.02(d), provided, that (x) in each case, immediately after giving
effect thereto, the Pro Forma and Projected Capped Excess Availability is at least 15% of the Line Cap, and (y) the aggregate amount of any such Restricted Payments pursuant to clauses (1) through (and including) (3) (whether in cash
or in other property or a combination thereof) shall not exceed in any twelve consecutive months 75% of any such Net Proceeds, dividends and distributions received in such twelve consecutive month period; provided that Restricted Payments
made pursuant to this clause (C) in cash during any twelve consecutive month period shall not exceed $125,000,000. For the avoidance of doubt, any Net Proceeds of the type described in clauses (1) through and including (3) of this
Section 6.02(d)(ii)(C) may be utilized to repay the Obligations or Priority Obligations and shall not be required to be segregated prior to making any Restricted Payments otherwise permitted under this clause (C); and 

(D) Holdings and its Subsidiaries may make other Restricted Payments as long as (i)(A) such Restricted Payment is funded from cash on hand and
not from proceeds of Debt, (B) for the 120 days before any such Restricted Payment, no revolving credit loans were outstanding under the First Lien Credit Agreement, and (C) for each of the 120 days before any such Restricted Payment, the
Borrowers shall have had cash on hand sufficient to make such Restricted Payment without the necessity of obtaining proceeds of revolving advances under the First Lien Credit Agreement for the operations of their businesses or for the purpose of
making such Restricted Payment, and (ii) after giving effect to such Restricted Payment, no revolving advances under the First Lien Credit Agreement are outstanding. 

(e) Negative Pledge Clauses. Enter into or suffer to exist or become effective any agreement that prohibits or limits the ability of
Holdings or any Subsidiary of Holdings to create, incur, assume or suffer to exist any Lien in favor of the Collateral Agent upon the Collateral (as defined in the Security Agreement and other Security Documents in effect from time to time, and
including assets which become Collateral pursuant to Section 6.01(n)), whether now owned or hereafter acquired, other than any agreement relating to any Lien on cash and cash equivalents not prohibited by Section 6.02(a) (including, for
the avoidance of doubt, the First Lien Credit Agreement Documents and any Additional First Lien Debt Documents). 
 (f) Clauses
Restricting Subsidiary Distributions. Enter into or suffer to exist or become effective any consensual encumbrance or restriction on the ability of any Subsidiary of Holdings other than a Loan Party to (a) make Restricted Payments in
respect of any equity interests of such Subsidiary held by, or pay any indebtedness owed to, Holdings or any other Subsidiary of Holdings, (b) make loans or advances to, or other investments in, Holdings or any other Subsidiary of Holdings or
(c) transfer any of its assets to Holdings or any other Subsidiary of Holdings, except for such encumbrances or restrictions existing under or by reason of (i) any restrictions existing under this Agreement and the other Loan Documents,
the First Lien Credit Agreement Documents or any Additional First Lien Debt Documents; (ii) any restrictions with respect to a Subsidiary imposed pursuant to an agreement that has been entered into in connection with the disposition of all or
any portion of the equity interests or assets of such Subsidiary; (iii) the provisions contained in any agreement governing indebtedness existing as of the Effective Date (and in any refinancing of such indebtedness so long as no more
restrictive than those contained in the respective existing indebtedness); (iv) customary provisions restricting subletting or assignment of any lease governing a leasehold interest of any Borrower or a Subsidiary of any Borrower entered into
in the ordinary course of business, (v) customary restrictions and conditions contained in the documents relating to any Lien, so long as such Lien is not prohibited hereunder and such restrictions or conditions relate only to the specific
asset subject to such Lien; (vi) customary provisions restricting assignment of any contract entered into by any Borrower or any Subsidiary of any Borrower in the ordinary course of business, (vii) any agreement or instrument governing
acquired debt, which restriction is not applicable to any Person or the properties or assets of any Person, other than the Person or the properties or assets of the Person acquired pursuant to the respective acquisition and so long as the respective
encumbrances or restrictions were not created (or made more restrictive) in connection with or in anticipation of the respective acquisition; (viii) customary provisions restricting the assignment of licensing agreements, management agreements
or franchise agreements entered into by any Borrower or any of its Subsidiaries in the ordinary course of business; (ix) restrictions on the transfer of assets securing purchase money obligations and capitalized lease

  
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obligations; (x) customary net worth provisions contained in real property leases entered into by Subsidiaries of any Borrower, so long as the applicable Borrower has determined in good
faith that such net worth provisions could not reasonably be expected to impair the ability of the Borrowers and their Subsidiaries to meet their ongoing obligations, (xi) restrictions in respect of the REMIC Certificates and the real property
assets related thereto, the Intellectual Property held by KCD IP, LLC and any proceeds of the foregoing, and (xii) restrictions governing a Subsidiary of Holdings in
connection with a Credit Card Royalty Securitization, and (xiii) such other restrictions as the Borrowers and Agent and/or the Collateral Agent may agree . 

(g) Accounting Changes. Make or permit any change in accounting policies or reporting practices, except as required or permitted by
GAAP. 
 (h) Reserved. 

(i) Dispositions. Make any Disposition except Permitted Dispositions. 

(j) Debt; Prepayment of Debt. 

(i) Create, incur, assume, suffer to exist or otherwise become or remain liable with respect to, any Debt, except Permitted
Debt; 
 (ii) Reserved; and 

(iii) Prepay any Debt (other than Priority Obligations)
unlessexcept: 

(A) Prepayments of Debt solely with Net Proceeds of Dispositions permitted pursuant to
clause (g)(iii) of the definition of “Permitted Dispositions” and with the proceeds of Permitted Dispositions of collateral for such Debt, including, as applicable, the April 2016 Mortgage Debt and the January 2017 Mortgage Debt; 

(B) Prepayments of the April 2016 Mortgage Debt solely with Net Proceeds received from
the Credit Card Royalty Securitization; and 
 (C) Other prepayments of Debt so
long as at the time of any such prepayment and immediately after giving pro forma effect thereto, no Default or Event of Default shall have occurred and be continuing. Further, if Holdings, the Borrowers or any of their Subsidiaries shall prepay
any Debt (other thanincluding Debt owed by a Loan Party to a Subsidiary that is not a Loan Party, but excluding other Debt owed to Holdings or any of its Subsidiaries and
excluding Priority Obligations) on any date (each, a “Prepayment Date”) then the Borrowers shall not permit Capped Excess Availability to be less than 12.5% of the Line Cap (or such lesser amount as may be permitted under the
First Lien Credit Agreement) at any time from the Prepayment Date until one year following the Prepayment Date; provided this sentence shall not apply to prepayments of Debt (for the avoidance of doubt, other than intercompany Debt)
(A) with the proceeds of the incurrence of Permitted Debt as long as the maturity of such Permitted Debt (i) with respect to Permitted Debt prepaying Debt having a maturity of one year or less, is at least sixty (60) days later than
the maturity of the Debt so refinanced, or (ii) with respect to all other Debt, is later than the maturity of the Debt so refinanced and the latest Termination Date, or (B) with the proceeds from the issuance of equity interests in a Group
Member (other than to another Group Member), or (C) in a principal amount not to exceed $25,000,000 in the aggregate in any fiscal year. For the avoidance of doubt, the foregoing sub-sections (ii) and (iii) of this
Section 6.02(j) will not apply to the repayment of the Obligations, which are rather governed by the provisions of Article II hereof. 

(k) Investments. Make any Investments, except Permitted Investments. 

  
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 (l) Store Closings. Close more than 250 full line Sears or Kmart Stores in any fiscal
quarter or more than 500 full line Sears or Kmart Stores in any four consecutive fiscal quarters without the consent of the Agent, such consent not to be unreasonably withheld and/or fail to comply with the requirements of the definition of Store
Closure Sale when and as applicable. 
 SECTION 6.03. Financial Covenant. During the continuance of a Covenant Compliance Event, each of
Holdings and the Borrowers will not permit the Fixed Charge Ratio as of the last day of any fiscal month of Holdings to be less than 1.0 to 1.0. 

ARTICLE VII 
 EVENTS OF DEFAULT

 SECTION 7.01. Events of Default. If any of the following events (“Events of Default”) shall occur and be
continuing: 
 (a) Any Borrower shall fail to pay (i) any principal of any Term Loan when the same becomes due and
payable, or (ii) any interest on any Term Loan or any fees, or any other amounts payable under this Agreement or any other Loan Document, in each case under this clause (ii), within three (3) days after the same becomes
due and payable; or 
 (b) Any representation or warranty made by any Loan Party herein or in any other Loan Document shall prove to have
been incorrect in any material respect when made; or 
 (c) (i) Any Loan Party shall fail to perform or observe any term, covenant or
agreement contained in Section 6.01 (d), (e), (h), (j) (other than 6.01(j)(viii)), or (m), 6.02, or 6.03 of this Agreement or (ii) any Loan Party shall fail to perform or observe any other term, covenant or agreement contained in this
Agreement or any other Loan Document, if such failure shall remain unremedied for thirty (30) days after written notice thereof shall have been given to Holdings and the Borrowers by the Agent or any Lender; or 

(d) Any Group Member shall fail to pay principal of at least $50,000,000 on any Debt that is outstanding (but excluding Debt outstanding
hereunder) when the same becomes due and payable (whether by scheduled maturity, required prepayment, acceleration, demand or otherwise), and such failure shall continue after the applicable grace period, if any, specified in the agreement or
instrument relating to such Debt; or any other event shall occur or condition shall exist under any agreement or instrument relating to any Debt that is outstanding in a principal amount of at least $50,000,000 and shall continue after the
applicable grace period, if any, specified in such agreement or instrument, if the effect of such event or condition is to accelerate the maturity of such Debt; or any such Debt shall be declared to be due and payable, or required to be prepaid or
redeemed, purchased or defeased, or an offer to prepay, redeem, purchase or defease such Debt shall be required to be made and is accepted in an amount of at least $50,000,000 (in each case other than (i) a scheduled prepayment, redemption or
purchase, or (ii) a mandatory prepayment, redemption or purchase, or a required offer to prepay, redeem or purchase, that results from the voluntary sale or transfer of property or assets), in each case prior to the stated maturity thereof; or

 (e) Any Group Member shall generally not pay its debts as such debts become due, or shall admit in writing its inability to pay its debts
generally, or shall make a general assignment for the benefit of creditors; or any proceeding shall be instituted by or against any Group Member seeking to adjudicate it a bankrupt or insolvent, or seeking liquidation, winding up, reorganization,
arrangement, adjustment, protection, relief, or composition of it or its debts under any law relating to bankruptcy, insolvency or reorganization or relief of debtors, or seeking the entry of an order for relief or the appointment of a receiver,
trustee, custodian or other similar official for it or for any substantial part of its property and, in the case of any such proceeding instituted against it (but not instituted by it), either such proceeding shall remain undismissed or unstayed for
a period of 90 days, or any of the actions sought in such proceeding (including the entry of an order for relief against, or the appointment of a receiver, trustee, custodian or other similar official for, it or for any substantial part of its
property) shall occur; or any Group Member shall take any corporate action to authorize any of the actions set forth above in this subsection (e); or 

  
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 (f) A judgment or order for the payment of money in excess of $50,000,000 (net of any portion of
such judgment to be paid by a third-party insurer as to which coverage has not been disputed) shall be rendered against any Group Member and either (i) enforcement proceedings shall have been commenced by any creditor upon such judgment or
order or (ii) there shall be any period of 10 consecutive days during which a stay of enforcement of such judgment or order, by reason of a pending appeal or otherwise, shall not be in effect; or 

(g) (i) Any “person” or “group” (as such terms are used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934,
but excluding any employee benefit plan of such person or its Subsidiaries, and any Person or entity acting in its capacity as trustee, agent or other fiduciary or administrator of any such plan) other than a Permitted Holder becomes the
“beneficial owner” (as defined in Rules 13d-3 and 13d-5 under the Securities Exchange Act of 1934, except that a person or group shall be deemed to have “beneficial ownership” of all securities that such person or group has the
right to acquire (such right, an “option right”), whether such right is exercisable immediately or only after the passage of time), directly or indirectly, of 35% or more of the equity securities of Holdings entitled to vote for members of
the Board of Directors of Holdings on a fully-diluted basis (and taking into account all such securities that such person or group has the right to acquire pursuant to any option right) and such “person” or “group” shall
beneficially own (as such term is used herein) a greater percentage of the equity Securities of Holdings entitled to vote for members of the Board of Directors than the Permitted Holders shall, collectively, beneficially own; or (ii) during any
period of 12 consecutive months, a majority of the members of the Board of Directors or other equivalent governing body of Holdings cease to be composed of individuals (x) who were members of that board or equivalent governing body on the first
day of such period, (y) whose election or nomination to that board or equivalent governing body was approved by individuals referred to in clause (x) above constituting at the time of such election or nomination at least a majority of that
board or equivalent governing body or (z) whose election or nomination to that board or other equivalent governing body was approved by individuals referred to in clauses (x) and (y) above constituting at the time of such election or
nomination at least a majority of that board or equivalent governing body; or (iii) Holdings shall cease for any reason to own, directly or indirectly, 100% of the Voting Stock of Sears and Kmart; or 

(h) (i) Any Borrower or any of its ERISA Affiliates shall incur, or shall be reasonably likely to incur liability in excess of $100,000,000 in
the aggregate as a result of one or more of the following: (i) the occurrence of any ERISA Event; (ii) the partial or complete withdrawal of such Borrower or any of its ERISA Affiliates from a Multiemployer Plan; or (iii) the
reorganization or termination of a Multiemployer Plan; or (iv) the PBGC shall have filed a notice of Lien; or 
 (i) Any of the Security
Documents shall cease, for any reason, to be in full force and effect, or any Loan Party shall so state in writing, or any Lien created by any of the Security Documents shall cease to be enforceable and of the same effect and priority purported to
be created thereby, including as a result of the failure to comply with Section 4.4 of the Security Agreement; or 
 (j) The guarantees
contained in Article X hereof shall cease, for any reason, to be in full force and effect or any Loan Party shall so state in writing; 
 then, and in any
such event, the Agent may, or, at the request of the Required Lenders shall, take any or all of the following actions upon notice to the Borrowers: (i) Reserved; and (ii) declare the Term
LoanLoans, all interest thereon and all other amounts payable under this Agreement and the other Loan Documents to be forthwith due and payable, whereupon the Term
LoanLoans, all such interest and all such amounts shall become and be forthwith due and payable, without presentment, demand, protest or further notice of any kind, all of which
are hereby expressly waived by the Borrowers; provided, however, that in the event of an actual or deemed entry of an order for relief with respect to any Borrower under the United States Bankruptcy Code, (A) Reserved and
(B) the Term LoanLoans, all such interest and all such amounts shall automatically become and be due and payable, without presentment, demand, protest or any notice of
any kind, all of which are hereby expressly waived by the Borrowers. 
 It is understood and agreed that if the Term Loans are accelerated pursuant to this
Section 7.01 for any reason, including without limitation because of the commencement of any insolvency proceeding or other proceeding pursuant to any debtor relief laws, the premium payable pursuant to Section 2.05(b) (the
“Term Loan Prepayment Premium”) determined as of the date of acceleration will also be due and payable as though the 2016 Term Loans were voluntarily prepaid as of such date and shall constitute part of the Obligations in respect of
the Term Loans, in view of 

  
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the impracticability and extreme difficulty of ascertaining actual damages and by mutual agreement of the parties as to a reasonable calculation of each Term Lender’s lost profits as a
result thereof. Any Term Loan Prepayment Premium payable in accordance with the immediately preceding sentence shall be presumed to be the liquidated damages sustained by each Term Lender as the result of the early termination and the Loan Parties
agree that it is reasonable under the circumstances currently existing. The Term Loan Prepayment Premium shall also be payable in the event the Term Loans are satisfied or released by foreclosure (whether by power of judicial proceeding or
otherwise) or deed in lieu of foreclosure. EACH LOAN PARTY EXPRESSLY WAIVES THE PROVISIONS OF ANY PRESENT OR FUTURE STATUTE OR LAW THAT PROHIBITS OR MAY PROHIBIT THE COLLECTION OF THE FOREGOING PREMIUM IN CONNECTION WITH ANY SUCH ACCELERATION
INCLUDING IN CONNECTION WITH ANY VOLUNTARY OR INVOLUNTARY ACCELERATION OF THE TERM LOANS PURSUANT TO ANY INSOLVENCY PROCEEDING OR OTHER PROCEEDING PURSUANT TO ANY DEBTOR RELIEF LAWS. Each Loan Party expressly agrees that: (A) the Term Loan
Prepayment Premium is reasonable and is the product of an arm’s length transaction between sophisticated business people, ably represented by counsel; (B) the Term Loan Prepayment Premium shall be payable notwithstanding the then
prevailing market rates at the time payment is made; (C) there has been a course of conduct between Term Lenders and the Loan Parties giving specific consideration in this transaction for such agreement to pay the Term Loan Prepayment Premium;
and (D) the Loan Parties shall be estopped hereafter from claiming differently than as agreed to in this paragraph. Each Loan Party expressly acknowledges that its agreement to pay the Term Loan Prepayment Premium to the Term Lenders as herein
described is a material inducement for the Term Lenders to provide the Term Commitment and provide the Term Loans. 
 ARTICLE VIII 

THE AGENT 
 SECTION 8.01.
Appointment. Each Lender hereby irrevocably designates and appoints JPP, LLC, a Delaware limited liability company, as Agent, under this Agreement and the other Loan Documents, and each such Lender irrevocably authorizes the Agent, in such
capacity, to take such action on its behalf under the provisions of this Agreement and the other Loan Documents and to exercise such powers and perform such duties as are expressly delegated to the Agent by the terms of this Agreement and the other
Loan Documents, together with such other powers as are reasonably incidental thereto. For clarity, and notwithstanding anything to the contrary contained in this Agreement and the other Loan Documents, no consent of the Lenders shall be required to
amend this Agreement or the Loan Documents to (i) cause additional assets to become Collateral or to add additional Subsidiaries as guarantors of the Obligations, or (ii) implement the provisions of Sections 2.18, 8.12 or 9.13(c), and the
Agent and the Loan Parties shall be entitled to execute any and all amendments necessary or desirable to accomplish any of the foregoing and such amendments shall be binding on the other parties hereto. Notwithstanding any provision to the contrary
elsewhere in this Agreement, the Agent shall not have any duties or responsibilities, except those expressly set forth in this Agreement and the other Loan Documents to which it is a party, or any fiduciary relationship with any Lender, and no
implied covenants, functions, responsibilities, duties, obligations or liabilities shall be read into this Agreement or any other Loan Document or otherwise exist against the Agent. 

SECTION 8.02. Delegation of Duties. The Agent may execute any of its duties under this Agreement and the other Loan Documents by or
through agents or attorneys-in-fact and shall be entitled to advice of counsel concerning all matters pertaining to such duties. The Agent shall not be responsible for
the negligence or misconduct of any agents or attorneys-in-fact selected by it with reasonable care. 

SECTION 8.03. Exculpatory Provisions. No Agent (for purposes of this Article VIII, “Agent” and
“Agents” shall mean the collective reference to the Agent and any other Lender designated as an “Agent” for purposes of this Agreement nor any of their respective officers, directors, employees, agents, attorneys-in-fact or affiliates shall be (i) liable for any action lawfully taken or omitted to be taken by it or such Person under or in connection with this Agreement
or any other Loan Document (except to the extent that any of the foregoing are found by a final and non-appealable decision of a court of competent jurisdiction to have resulted from its or such Person’s own gross negligence or willful
misconduct) or (ii) responsible in any manner to any of the Lenders for any recitals, statements, representations or warranties made by any Loan Party or any officer thereof contained in this Agreement or any other Loan Document or in any
certificate, report, statement or other document referred to or provided for in, or received by the Agents under or in connection with, this Agreement or any other Loan Document or for the value, validity, 

  
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effectiveness, genuineness, enforceability or sufficiency of this Agreement or any other Loan Document or for any failure of any Loan Party that is a party thereto to perform its obligations
hereunder or thereunder. The Agents shall not be under any obligation to any Lender to ascertain or to inquire as to the observance or performance of any of the agreements contained in, or conditions of, this Agreement or any other Loan Document, or
to inspect the properties, books or records of any Loan Party. 
 SECTION 8.04. Reliance by Agent. The Agent shall be entitled to
rely, and shall be fully protected in relying, upon any instrument, writing, resolution, notice, consent, certificate, affidavit, letter, telecopy, telex or teletype message, statement, order or other document or conversation believed by them to be
genuine and correct and to have been signed, sent or made by the proper Person or Persons and upon advice and statements of legal counsel (including counsel to Holdings or the Borrowers), independent accountants and other experts selected by the
Agent. The Agent may deem and treat the payee of any Note as the owner thereof for all purposes unless a written notice of assignment, negotiation or transfer thereof shall have been filed with the Agent. The Agent shall be fully justified in
failing or refusing to take any action under this Agreement or any other Loan Document unless it shall first receive such advice or concurrence of the Required Lenders as they deem appropriate or they shall first be indemnified to its satisfaction
by the Lenders against any and all liability and expense that may be incurred by it by reason of taking or continuing to take any such action. The Agent shall in all cases be fully protected in acting, or in refraining from acting, under this
Agreement and the other Loan Documents in accordance with a request of the Required Lenders, and such request and any action taken or failure to act pursuant thereto shall be binding upon all the Lenders and all future holders of the Term
LoanLoans. 
 SECTION 8.05. Notice of Default. The Agent shall
not be deemed to have knowledge or notice of the occurrence of any Default or Event of Default unless the Agent has received notice from a Lender, Holdings or a Borrower referring to this Agreement, describing such Default or Event of Default and
stating that such notice is a “notice of default”. In the event that the Agent receives such a notice, the Agent shall give notice thereof to the Lenders. The Agent shall take such action with respect to such Default or Event of Default as
shall be reasonably directed by the Required Lenders; provided that unless and until the Agent shall have received such directions, the Agent may (but shall not be obligated to) take such action, or refrain from taking such action, with
respect to such Default or Event of Default as it shall deem advisable in the best interests of the Lenders. 
 SECTION 8.06.
Non-Reliance on Agents and Other Lenders. Each Lender expressly acknowledges that neither the Agent nor any of its officers, directors, employees, agents,
attorneys-in-fact or affiliates have made any representations or warranties to it and that no act by the Agent hereafter taken, including any review of the affairs of a
Loan Party or any affiliate of a Loan Party, shall be deemed to constitute any representation or warranty by the Agent to any Lender. Each Lender represents to the Agent that it has, independently and without reliance upon the Agent, or any other
Lender, and based on such documents and information as it has deemed appropriate, made its own appraisal of and investigation into the business, operations, property, financial and other condition and creditworthiness of the Loan Parties and their
affiliates and made its own decision to make the Term LoanLoans hereunder and enter into this Agreement. Each Lender also represents that it will, independently and without
reliance upon the Agent or any other Lender, and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit analysis, appraisals and decisions in taking or not taking action under this Agreement
and the other Loan Documents, and to make such investigation as it deems necessary to inform itself as to the business, operations, property, financial and other condition and creditworthiness of the Loan Parties and their Affiliates. Except for
notices, reports and other documents expressly required to be furnished to the Lenders by the Agent hereunder, the Agent shall not have any duty or responsibility to provide any Lender with any credit or other information concerning the business,
operations, property, condition (financial or otherwise), prospects or creditworthiness of any Loan Party or any Affiliate of a Loan Party that may come into the possession of the Agent or the Collateral Agent or any of their respective officers,
directors, employees, agents, attorneys-in-fact or affiliates. 

SECTION 8.07. Reports and Financial Statements. By signing this Agreement, each Lender: 

(a) Reserved; 
 (b) is deemed to
have requested that the Agent furnish such Lender, promptly after they become available, copies of all financial statements and reports required to be delivered by the Loan Parties hereunder and all commercial finance examinations and appraisals of
the Collateral received by the Agent (collectively, the “Reports”) (which the Agent agrees to so deliver); 

  
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 (c) expressly agrees and acknowledges that the Agent makes no representation or warranty as to
the accuracy of the Reports, and shall not be liable for any information contained in any Report; 
 (d) expressly agrees and acknowledges
that the Reports are not comprehensive audits or examinations, that the Agent or any other party performing any audit or examination will inspect only specific information regarding the Loan Parties and will rely significantly upon the Loan
Parties’ books and records, as well as on representations of the Loan Parties’ personnel; 
 (e) agrees to keep all Reports
confidential in accordance with the provisions of this Agreement; and 
 (f) without limiting the generality of any other indemnification
provision contained in this Agreement, agrees: (i) reserved; and (ii) to pay and protect, and indemnify, defend, and hold the Agent and any such other Lender or Person preparing a Report harmless from and against, the claims, actions,
proceedings, damages, costs, expenses, and other amounts (including reasonable attorney costs) incurred by the Agent and any such other Lender or Person preparing a Report as the direct or indirect result of any third parties who might obtain all or
part of any Report through the indemnifying Lender. 
 SECTION 8.08. Indemnification. The Lenders agree to indemnify the Agent in its
capacity as such (to the extent not reimbursed by Holdings or the Borrowers and without limiting the obligation of Holdings or the Borrowers to do so), ratably according to their respective Pro Rata Shares in effect on the date on which
indemnification is sought under this Section (or, if indemnification is sought after the date upon which the Term
LoanLoans shall have been paid in full, in accordance with such Pro Rata Shares immediately prior to such date), from and against any and all liabilities, obligations, losses,
damages, penalties, actions, judgments, suits, costs, expenses or disbursements of any kind whatsoever that may at any time (whether before or after the payment of the Term
LoanLoans) be imposed on, incurred by or asserted against such Agent in any way relating to or arising out of, the Commitments, this Agreement, any of the other Loan Documents or
any documents contemplated by or referred to herein or therein or the transactions contemplated hereby or thereby or any action taken or omitted by such Agent under or in connection with any of the foregoing; provided that no Lender shall be
liable for the payment of any portion of such liabilities, obligations, losses, damages, penalties, actions, judgments, suits, costs, expenses or disbursements that are found by a final and non-appealable decision of a court of competent
jurisdiction to have resulted from the Agent’s gross negligence or willful misconduct. The agreements in this Section shall survive the payment of the Term LoanLoans
and all other amounts payable hereunder. 
 SECTION 8.09. Agent in Its Individual Capacity. Each Agent and its Affiliates may make
loans to, accept deposits from and generally engage in any kind of business with any Loan Party as though such Agent were not an Agent. With respect to Term Loans made by it, each Agent shall have the same rights and powers under
this Agreement and the other Loan Documents as any Lender and may exercise the same as though it were not an Agent, and the terms “Lender” and “Lenders” shall include each Agent in its individual capacity. 

SECTION 8.10. Successor Agent. 

(a) The Agent may resign as Agent upon 30 days’ notice to the Lenders and the Borrowers. If the Agent shall resign as Agent under this
Agreement and the other Loan Documents, then the Required Lenders shall appoint from among the Lenders a successor agent for the Lenders, which successor agent shall (unless an Event of Default shall have occurred and be continuing) be subject to
approval by the Borrowers (which approval shall not be unreasonably withheld or delayed), whereupon such successor agent shall succeed to the rights, powers and duties of the Agent, and the term “Agent” shall mean such successor agent
effective upon such appointment and approval, and the former Agent’s rights, powers and duties as Agent shall be terminated, without any other or further act or deed on the part of such former Agent or any of the parties to this Agreement or
any holders of Term LoanLoans. If no successor agent has accepted appointment as Agent by the date that is 30 days following a retiring Agent’s notice of resignation,
the retiring Agent’s resignation shall nevertheless thereupon become effective, and the Lenders shall assume and perform all of the duties of the Agent hereunder, until such time, if any, as the Required Lenders appoint a successor agent as
provided for above. After any retiring Agent’s resignation as Agent, the provisions of this Article VIII shall inure to its benefit as to any actions taken or omitted to be taken by it while it was Agent under this Agreement and the other Loan
Documents. 

  
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 SECTION 8.11. Reserved. 

SECTION 8.12. Defaulting Lenders. 

(a) Adjustments. Notwithstanding anything to the contrary contained in this Agreement, if any Lender becomes a Defaulting Lender, then,
until such time as that Lender is no longer a Defaulting Lender, to the extent permitted by applicable Law: 
 (i) Waivers
and Amendments. Such Defaulting Lender’s right to approve or disapprove any amendment, waiver or consent with respect to this Agreement shall be restricted as set forth in the definition of “Required Lenders” and this
Section 8.12. 
 (b) Defaulting Lender Waterfall. Any payment of principal, interest, fees or other amounts received by the Agent
for the account of such Defaulting Lender (whether voluntary or mandatory, at maturity, pursuant to Article VII or otherwise) or received by the Agent from a Defaulting Lender pursuant to Section 9.05 shall be applied at such time or times as
may be determined by the Agent as follows: first, to the payment of any amounts owing by such Defaulting Lender to the Agent hereunder; second, as the Borrowers may request (so long as no Default or Event of Default exists), to the funding of any
Extension of Credit in respect of which such Defaulting Lender has failed to fund its portion thereof as required by this Agreement, as determined by the Agent; fifththird,
if so determined by the Agent and the Borrowers, to be held in a deposit account and released pro rata in order to satisfy such Defaulting Lender’s potential future funding obligations with respect to Extensions of Credit under this Agreement;
sixthfourth, to the payment of any amounts owing to the Non-Defaulting Lenders as a result of any judgment of a court of competent jurisdiction obtained by any Lender
against such Defaulting Lender as a result of such Defaulting Lender’s breach of its obligations under this Agreement; seventhfifth, so long as no Default or Event of
Default exists, to the payment of any amounts owing to the Borrowers as a result of any judgment of a court of competent jurisdiction obtained by the Borrowers against such Defaulting Lender as a result of such Defaulting Lender’s breach of its
obligations under this Agreement; and eighthsixth, to such Defaulting Lender or as otherwise directed by a court of competent jurisdiction. 

(c) Consents. If a Lender becomes a Defaulting Lender, then, in addition to the rights and remedies that may be available to the other
Credit Parties, the Loan Parties or any other party at law or in equity, and not in limitation thereof, except as set forth in the last sentence hereof, such Defaulting Lender’s right to participate in decision-making rights related to the
Obligations in respect of Required Lender or Required Term Lender votes, this Agreement or the other Loan Documents shall be suspended during the pendency of such failure or refusal.
Notwithstanding anything else provided herein, any amendment, waiver determination, consent or notification under Section 9.01 that would (i) reduce the principal amount of the Term Loan made by such Defaulting Lender,
(ii) alter the terms and conditions of this sentence or (iii) otherwise disproportionately affect a Defaulting Lender, will require the consent of such Defaulting Lender. 

(d) Defaulting Lender Cure. If the Borrowers and the Agent agree in writing that a Lender is no longer a Defaulting Lender, the Agent
will so notify the parties hereto, whereupon such Lender will cease to be a Defaulting Lender; provided that no adjustments will be made retroactively with respect to fees accrued or payments made by or on behalf of the Borrowers while that Lender
was a Defaulting Lender; and provided, further, that except to the extent otherwise expressly agreed by the affected parties, no change hereunder from Defaulting Lender to Lender will constitute a waiver or release of any claim of any party
hereunder arising from that Lender’s having been a Defaulting Lender. 

  
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 ARTICLE IX 

MISCELLANEOUS 
 SECTION 9.01.
Amendments, Etc. No amendment or waiver of any provision of this Agreement or any other Loan Document, nor consent to any departure by any Borrower or any Loan Party therefrom, shall in any event be effective unless the same shall be in
writing and signed by the Required Lenders, and then such waiver or consent shall be effective only in the specific instance and for the specific purpose for which given; provided, however, that no amendment, waiver or consent shall
(a) unless in writing and also signed by each Lender directly affected thereby, do any of the following: (i) increase the amount or extend the expiration date of any Lender’s
Commitment or otherwise commit such lender to make Loans hereunder, (ii) reduce the principal of, or interest on, the
Termany Loan or any fees or other amounts payable hereunder or (iii) postpone any date fixed for any payment of principal of, or interest on, the
Termany Loan or any fees or other amounts payable hereunder; provided that any waiver or reduction of any payment of the Term Loan from any Excess Cash Flow may be waived or
modified solely with the written consent of the Required Term Lenders then holding a majority in amount of the Term Loans; (b) unless in writing and signed by all of
the Lenders, do any of the following: (i) change the percentage of the Commitments or of the aggregate unpaid principal amount of the Term Loan, or the number of Lenders, that shall be required for the Lenders or any of them to take any
action hereunder[reserved], (ii) other than in accordance with Section 9.13, release all or substantially all of the Collateral or release all or substantially all of the
guarantors from their obligations under the Article X hereof, (iii) except as expressly permitted herein or in any other Loan Document, subordinate the Liens granted hereunder or under the other Loan Documents, to any other Lien,
(iv) amend this Section 9.01, (v) amend the definitionsdefinition of “Required Lenders” or (vi) other than in accordance with
Section 6.01(d), release either Borrower from all of its obligations hereunder, (c) reservedunless in writing and signed by all of the Term Lenders, do any of the
following: (i) change the percentage of the Commitments or of the aggregate unpaid principal amount of the Term Loan, or the number
of Term Lenders, that shall be required for the Term
Lenders or any of them to take any action hereunder or (ii) amend the definition of “Required Term Lenders”;
(d) unless in writing and signed by the Agent (in addition to the Lenders required above to take such action), amend, modify or waive any provision of Article VIII or affect the rights or duties of the Agent under this Agreement or any other
Loan Document; (e) reserved, (f) reserved, or (g) unless in writing signed by members of any Class holding a majority in amount of such Class, have a materially
disproportionate adverse effect on such Class. 
 SECTION 9.02. Notices, Etc. (a) All notices and other communications provided for
hereunder shall be in writing (including telecopier communication) and mailed, telecopied or delivered, (i) if to Holdings, any Borrower or any Subsidiary Guarantor, at its address at 3333 Beverly Road, Hoffman Estates, Illinois 60179,
Attention: General Counsel, with a copy to Wachtell, Lipton, Rosen & Katz, 51 West 52nd Street, New York, New York 10019, Attention: Scott Charles; (ii) if to any Lender, at its address set forth in its completed administrative
questionnaire delivered to the Agent; and (iii) if to the Agent, at its address at ESL Investments, Inc., 1170 Kane Concourse, Suite 200 Bay Harbor Islands, FL 33154, Attention: Edward S. Lampert, CEO; provided that notices required to
be delivered pursuant to Section 6.01(j)(i), (ii), (iii), and (v) shall be delivered to the Agent and the Lenders as specified in Section 9.02(b). All such notices and communications shall, when mailed, telecopied, telegraphed or
emailed, be effective when deposited in the mails, telecopied, delivered to the telegraph company or confirmed by email, respectively, except that notices and communications to the Agent pursuant to Article II or VIII shall not be effective until
received by the Agent. Delivery by telecopier of an executed counterpart of any amendment or waiver of any provision of this Agreement or any Loan Document or of any exhibit hereto or thereto to be executed and delivered hereunder shall be effective
as delivery of a manually executed counterpart thereof. 
 (b) Holdings and the Borrowers agree that materials required to be delivered
pursuant to Sections 6.01(j)(i), (ii), (iii) and (v), shall be deemed delivered to the Agent on the date on which Holdings causes such reports, or reports containing such financial statements, to be posted on the Internet at www.sec.gov or at
such other website identified by the Borrowers in a written notice to the Agent and the Lenders and that is accessible by the Lenders without charge or if not so posted, may be delivered to the Agent in an electronic medium in a format acceptable to
the Agent by email to eslaccounting@eslinvest.com. Holdings and the Borrowers agree that the Agent may make such materials, as well as any other written information, documents, instruments and other material relating to Holdings, the Borrowers, any
of their Subsidiaries or any other materials or matters relating to this Agreement, the Loan Documents or any of the transactions contemplated hereby (collectively, the “Communications”) available to the Lenders by posting such
notices on Intralinks or a substantially similar electronic system (the “Platform”). Holdings 

  
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and the Borrowers acknowledge that (i) the distribution of material through an electronic medium is not necessarily secure and that there are confidentiality and other risks associated with
such distribution, (ii) the Platform is provided “as is” and “as available” and (iii) neither the Agent nor any of its Affiliates warrants the accuracy, adequacy or completeness of the Communications or the Platform and
each expressly disclaims liability for errors or omissions in the Communications or the Platform. No warranty of any kind, express, implied or statutory, including any warranty of merchantability, fitness for a particular purpose, non-infringement
of third party rights or freedom from viruses or other code defects, is made by the Agent or any of its Affiliates in connection with the Platform. 

(c) Each Lender agrees that notice to it (as provided in the next sentence) (a “Notice”) specifying that any Communications
have been posted to the Platform shall constitute effective delivery of such information, documents or other materials to such Lender for purposes of this Agreement; provided that if requested by any Lender the Agent shall deliver a copy of
the Communications to such Lender by email or telecopier. Each Lender agrees (i) to notify the Agent in writing of such Lender’s e-mail address to which a Notice may be sent by electronic transmission (including by electronic
communication) on or before the date such Lender becomes a party to this Agreement (and from time to time thereafter to ensure that the Agent has on record an effective e-mail address for such Lender) and (ii) that any Notice may be sent to
such e-mail address. 
 SECTION 9.03. No Waiver; Remedies. No failure on the part of any Lender or the Agent to exercise, and no
delay in exercising, any right hereunder or under any other Loan Document shall operate as a waiver thereof; nor shall any single or partial exercise of any such right preclude any other or further exercise thereof or the exercise of any other
right. The remedies herein provided are cumulative and not exclusive of any remedies provided by law. 
 SECTION 9.04. Costs and
Expenses. (a) Holdings and the Borrowers jointly and severally agree to pay promptly all reasonable costs and expenses of the Agent in connection with the preparation, execution, delivery, distribution (including via the internet or through
a service such as Intralinks), administration, modification and amendment of this Agreement, the other Loan Documents and the other documents to be delivered hereunder, including, (A) all due diligence, syndication (including printing,
distribution and bank meetings), transportation, computer, duplication, appraisal, consultant, and audit expenses, (B) reserved, and (C) the reasonable fees and expenses of counsel for the Agent with respect thereto and with respect to
advising the Agent as to their rights and responsibilities under this Agreement and the other Loan Documents. Holdings and the Borrowers further jointly and severally agree to pay on demand all costs and expenses of the Agent and the Lenders, if any
(including reasonable counsel fees and expenses), in connection with the enforcement of, or protection of their rights under, (whether through negotiations, legal proceedings or otherwise) of this Agreement, the other Loan Documents and the other
documents to be delivered hereunder, including reasonable fees and expenses of one counsel for the Agent, and one counsel for the Lenders in connection with the enforcement of or protection rights under this Section 9.04(a). 

(b) Holdings and the Borrowers jointly and severally agree to indemnify and hold harmless the Agent and each Lender and each of their
Affiliates and their officers, directors, employees, agents and advisors (each, an “Indemnified Party”) from and against any and all claims, damages, losses, liabilities and expenses (including reasonable fees and expenses of
counsel) incurred by or asserted or awarded against any Indemnified Party, in each case arising out of or in connection with or by reason of (including in connection with any investigation, litigation or proceeding or preparation of a defense in
connection therewith) (i) this Agreement, the other Loan Documents, any of the transactions contemplated herein or therein or the actual or proposed use of the Term Loans, and (ii) the actual or alleged presence of
Hazardous Materials on any property of Holdings, the Borrowers or any of their Subsidiaries or any Environmental Action relating in any way to Holdings, the Borrowers or any of their Subsidiaries, except to the extent such claim, damage, loss,
liability or expense is found in a final, non-appealable judgment by a court of competent jurisdiction to have resulted from such Indemnified Party’s gross negligence or willful misconduct. In the case of an investigation, litigation or other
proceeding to which the indemnity in this Section 9.04(b) applies, such indemnity shall be effective whether or not such investigation, litigation or proceeding is brought by Holdings, any Borrower, its directors, equityholders or creditors or
an Indemnified Party or any other Person, whether or not any Indemnified Party is otherwise a party thereto and whether or not the transactions contemplated hereby are consummated. Holdings and the Borrowers also agree not to assert any claim for
special, indirect, consequential or punitive damages against the Agent, any Lender, any of their Affiliates, or any of their respective directors, officers, employees, attorneys and agents, on any theory of liability, arising out of or otherwise
relating to this Agreement, the other Loan Documents, any of the transactions contemplated herein or the actual or proposed use of the proceeds of the Term LoanLoans. 

  
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 (c) If (i) any payment of principal of, or Conversion of, any Eurodollar Rate Advance is
made by any Borrower to or for the account of a Lender other than on the last day of the Interest Period for such Advance, as a result of a payment or Conversion pursuant to Section 2.09(d) or (e), 2.11 or 2.13, acceleration of the maturity of
the Term Loan pursuant to Section 7.01 or for any other reason, or by an Eligible Assignee to a Lender other than on the last day of the Interest Period for such Advance upon an assignment of rights and obligations under this Agreement pursuant
to Section 9.07 as a result of a demand by any Borrower pursuant to Section 9.07(a), or (ii) any Borrower fails to prepay, borrow, continue or convert any Eurodollar Rate Advance on the date or in the amount notified by any Borrower;
the applicable Borrower shall, promptly after notice by such Lender setting forth in reasonable detail the calculations used to quantify such amount (with a copy of such notice to the Agent), pay to the Agent for the account of such Lender any
amounts required to compensate such Lender for any additional losses, costs or expenses that it may reasonably incur as a result of such payment or Conversion, including any loss (including loss of anticipated profits), cost or expense incurred by
reason of the liquidation or reemployment of deposits or other funds acquired by any Lender to fund or maintain such Advance. For purposes of calculating amounts payable by the Borrowers to the Lenders under this Section 9.04(c), each Lender
shall be deemed to have funded each Eurodollar Rate Advance made by it at the Eurodollar Rate for such Advance by a matching deposit or other borrowing in the London interbank market for a comparable amount and for a comparable period, whether or
not such Eurodollar Rate Advance was in fact so funded. 
 (d) Without prejudice to the survival of any other agreement of Holdings or any
Borrower hereunder, the agreements and obligations of Holdings and the Borrowers contained in Sections 2.12, 2.15 and 9.04 shall survive the payment in full of principal, interest and all other amounts payable hereunder and under the other Loan
Documents. 
 (e) If (i) any payment of principal of any Eurodollar Rate Line of
Credit Loan is made by any Borrower to or for the account of any Line of Credit Lender other than on the applicable Line of Credit Loan Maturity Date for such Line of Credit Loan, as a result of a payment pursuant to Section 2.11 or 2.13,
acceleration of the maturity of such Line of Credit Loan pursuant to Section 7.01 or for any other reason, or by an Eligible Assignee to a Line of Credit Lender other than on the last day of the applicable Line of Credit Loan Maturity Date for
such Line of Credit Loan upon an assignment of rights and obligations under this Agreement pursuant to Section 9.07 as a result of a demand by any Borrower pursuant to Section 9.07(a), or (ii) any Borrower fails to prepay or borrow
any Eurodollar Rate Line of Credit Loan on the date or in the amount notified by any Borrower; the applicable Borrower shall, promptly after notice by such Line of Credit Lender setting forth in reasonable detail the calculations used to quantify
such amount (with a copy of such notice to the Agent), pay to the Agent for the account of such Line of Credit Lender any amounts required to compensate such Line of Credit Lender for any additional losses, costs or expenses that it may reasonably
incur as a result of such payment, including any loss (including loss of anticipated profits), cost or expense incurred by reason of the liquidation or reemployment of deposits or other funds acquired by any Line of Credit Lender to fund or maintain
such Line of Credit Loan. For purposes of calculating amounts payable by the Borrowers to the Line of Credit Lenders under this Section 9.04(e), each Line of Credit Lender shall be deemed to have funded each Eurodollar Rate Line of Credit Loan
made by it at the Eurodollar Rate for such Line of Credit Loan by a matching deposit or other borrowing in the London interbank market for a comparable amount and for a comparable period, whether or not such Eurodollar Rate Line of Credit Loan was
in fact so funded. 
 SECTION 9.05. Right of Set-off. Upon (i) the occurrence and during the continuance of any Event of
Default and (ii) the making of the request or the granting of the consent specified by Section 7.01 to authorize the Agent to declare the Extensions of Credit due and payable pursuant to the provisions of Section 7.01, each Lender and
each of its Affiliates is hereby authorized at any time and from time to time, to the fullest extent permitted by law, to set off and apply any and all deposits (general or special, time or demand, provisional or final) at any time held and other
indebtedness at any time owing by such Lender or such Affiliate to or for the credit or the account of Holdings or any Loan Party against any and all of the obligations of Holdings and the Loan Parties now or hereafter existing under this Agreement,
the other Loan Documents and the Extensions of Credit of such Lender, whether or not such Lender shall have made any demand under this Agreement or the other Loan Documents. Each Lender agrees promptly to notify Holdings or the applicable Loan Party
(with a copy to the Agent) after any such set-off and application, provided that the failure to give such notice shall not affect the validity of such set-off and application. The rights of each Lender and its Affiliate under this Section are
in addition to other rights and remedies (including other rights of set-off) that such Lender and its Affiliate may have. 

  
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 SECTION 9.06. Binding Effect; Effectiveness. When this Agreement has been executed by
Holdings, the Borrowers, the Agent, and the Lenders, this Agreement shall thereafter be binding upon and inure to the benefit of Holdings, the Borrowers, the Agent, each Lender and their respective successors and assigns; provided, that,
except with respect to Sections 9.07 and 9.08, this Agreement shall only become effective upon satisfaction of the conditions precedent set forth in Section 4.01 and none of the provisions of this Agreement, including without limitation
provisions in respect of Term Loans to be made by or issued by any Lender, and in respect of any covenant, fee, indemnity, default, and expense reimbursement made by any Loan Party or for which any Loan Party is liable hereunder,
shall become effective, nor shall any representation herein be deemed to be made, until the satisfaction of such conditions. 
 SECTION
9.07. Assignments and Participations. (a) Each Lender may, upon notice to the Borrowers and the Agent and with the consent, not to be unreasonably withheld or delayed, of the Agent, and, unless an Event of Default has occurred and is
continuing, the Borrowers (which consent shall be deemed given by the Borrowers if the Borrowers have not responded to a request for such consent within ten (10) Business Days), assign to one or more Persons all or a portion of its rights and
obligations under this Agreement (including all or a portion of the Term LoanLoans and other amounts owing to it and any Note or Notes held by it); provided,
however, that (i) reserved; (ii) reserved, (iii) each such assignment with respect to any Class of rights and obligations shall be of a constant, and not a varying, percentage of all rights and obligations under this Agreement
with respect to such Class, (iv) except in the case of an assignment to a Person that, immediately prior to such assignment, was a Lender, an Affiliate of a Lender or an Approved Fund or an assignment of all of a Lender’s rights and
obligations under this Agreement, the amount of the Term Loan of the assigning Term Lender being assigned pursuant to each such assignment (determined as of the date of the Assignment and Acceptance with respect to
such assignment) shall in no event be less than $5,000,000 or an integral multiple of $1,000,000 in excess thereof (or, if less, the entire outstanding amount of the Term Loan held by such Term Lender) unless the
Borrowers and the Agent otherwise agree, (v) each such assignment shall be to an Eligible Assignee, (vi) the parties to each such assignment shall execute and deliver to the Agent, for its acceptance and recording in the Register, an
Assignment and Acceptance, and the parties to such assignment (other than the Borrowers and the Agent) shall deliver together therewith any Note subject to such assignment and a processing and recordation fee of $3,500 (except no such fee shall be
payable for assignments to a Lender, an Affiliate of a Lender or an Approved Fund), and (vii) any Lender may, without the approval of the Borrowers, but with notice to the Borrowers, assign all or a portion of its rights and obligations to any
of its Affiliates or to another Lender. Upon such execution, delivery, acceptance and recording, from and after the effective date specified in each Assignment and Acceptance, (x) the assignee thereunder shall be a party hereto and, to the
extent that rights and obligations hereunder have been assigned to it pursuant to such Assignment and Acceptance, have the rights and obligations of a Lender hereunder and (y) the Lender assignor thereunder shall, to the extent that rights and
obligations hereunder have been assigned by it pursuant to such Assignment and Acceptance, relinquish its rights (other than its rights under Section 2.12, 2.15 and 9.04 to the extent any claim thereunder relates to an event arising prior such
assignment) and be released from its obligations under this Agreement (and, in the case of an Assignment and Acceptance covering all or the remaining portion of an assigning Lender’s rights and obligations under this Agreement, such Lender
shall cease to be a party hereto). 
 (b) In connection with any assignment of rights and obligations of any Defaulting Lender hereunder, no
such assignment shall be effective unless and until, in addition to the other conditions thereto set forth herein, the parties to the assignment shall make such additional payments to the Agent in an aggregate amount sufficient, upon distribution
thereof as appropriate (which may be outright payment, purchases by the assignee of participations or sub-participations, or other compensating actions, including funding, with the consent of the Agent, the applicable pro rata share of
TermPro Rata Share of Loans previously requested but not funded by the Defaulting Lender, to each of which the applicable assignee and assignor hereby irrevocably consent), to
(x) pay and satisfy in full all payment liabilities then owed by such Defaulting Lender to the Agent or any Lender hereunder (and interest accrued thereon). Notwithstanding the foregoing, in the event that any assignment of rights and
obligations of any Defaulting Lender hereunder shall become effective under applicable law without compliance with the provisions of this paragraph, then the assignee of such interest shall be deemed to be a Defaulting Lender for all purposes of
this Agreement until such compliance occurs. 

  
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 (c) By executing and delivering an Assignment and Acceptance, the Lender assignor thereunder and
the assignee thereunder confirm to and agree with each other and the other parties hereto as follows: (i) other than as provided in such Assignment and Acceptance, such assigning Lender makes no representation or warranty and assumes no
responsibility with respect to any statements, warranties or representations made in or in connection with this Agreement or the other Loan Documents or the execution, legality, validity, enforceability, genuineness, sufficiency or value of this
Agreement or the other Loan Documents or any other instrument or document furnished pursuant hereto or thereto; (ii) such assigning Lender makes no representation or warranty and assumes no responsibility with respect to the financial condition
of the Loan Parties or the performance or observance by the Borrowers of any of their obligations under this Agreement or any other instrument or document furnished pursuant hereto; (iii) such assignee confirms that it has received a copy of
this Agreement, together with copies of the financial statements referred to in Section 5.01 and such other documents and information as it has deemed appropriate to make its own credit analysis and decision to enter into such Assignment and
Acceptance; (iv) such assignee will, independently and without reliance upon the Agent, such assigning Lender or any other Lender and based on such documents and information as it shall deem appropriate at the time, continue to make its own
credit decisions in taking or not taking action under this Agreement and the other Loan Documents; (v) such assignee confirms that it is an Eligible Assignee; (vi) such assignee appoints and authorizes the Agent to take such action as
agent on its behalf and to exercise such powers and discretion under this Agreement and the other Loan Documents as are delegated to the Agent by the terms hereof and thereof, together with such powers and discretion as are reasonably incidental
thereto; and (vii) such assignee agrees that it will perform in accordance with their terms all of the obligations that by the terms of this Agreement are required to be performed by it as a Lender. 

(d) Upon its receipt of an Assignment and Acceptance executed by an assigning Lender and an assignee representing that it is an Eligible
Assignee, together with any Note or Notes subject to such assignment, the Agent shall, if such Assignment and Acceptance has been completed and is in substantially the form of Exhibit B hereto, (i) accept such Assignment and Acceptance,
(ii) record the information contained therein in the Register and (iii) give prompt notice thereof to the Borrowers. 
 (e) The
Agent shall maintain at its address referred to in Section 9.02 a copy of each Assignment and Acceptance delivered to and accepted by it and a register for the recordation of the names and addresses of the Lenders and the principal amount of
the Term LoanLoans owing to each Term Lender from time to time (the “Register”). The entries in the Register shall be conclusive and
binding for all purposes, absent manifest error, and the Borrowers, the Agent and the Lenders may treat each Person whose name is recorded in the Register as a Lender hereunder for all purposes of this Agreement. The Register shall be available for
inspection by the Borrowers or any Lender at any reasonable time and from time to time upon reasonable prior notice. 
 (f) Each Lender may,
without the consent of the Agent or any Loan Party, sell participations to one or more banks or other entities (other than the Borrowers or any of their Affiliates that is not a Permitted Holder) in or to all or a portion of its rights and
obligations under this Agreement (including all or a portion of the Term LoanLoans owing to it and any Note or Notes held by it); provided, however, that
(i) such Lender’s obligations under this Agreement shall remain unchanged, (ii) such Lender shall remain solely responsible to the other parties hereto for the performance of such obligations, (iii) such Lender shall remain the
holder of any such Note for all purposes of this Agreement, (iv) the Borrowers, the Agent and the other Lenders shall continue to deal solely and directly with such Lender in connection with such Lender’s rights and obligations under this
Agreement and (v) no participant under any such participation shall have any right to approve any amendment or waiver of any provision of this Agreement or any Loan Document, or consent to any departure by any Borrower therefrom, except to the
extent that such amendment, waiver or consent would require the affirmative vote of the Lender from which it purchased its participation pursuant to Section 9.01(a). 

(g) Any Lender may, in connection with any assignment or participation or proposed assignment or participation pursuant to this
Section 9.07, disclose to the assignee or participant or proposed assignee or participant, any information relating to Holdings, the Borrowers or their Subsidiaries furnished to such Lender by or on behalf of the Borrowers; provided
that, prior to any such disclosure, the assignee or participant or proposed assignee or participant shall agree to preserve the confidentiality of any Borrower Information relating to Holdings, the Borrowers or their Subsidiaries received by it from
such Lender in accordance with Section 9.08. 

  
 66 

 (h) Notwithstanding any other provision set forth in this Agreement, any Lender may at any time
create a security interest in all or any portion of its rights under this Agreement (including the portion of the Termany Loan owing to it and any Notes held by it),
including, without limitation, in favor of any Federal Reserve Bank in accordance with Regulation A of the Board of Governors of the Federal Reserve System. 

(i) The Borrowers, upon receipt of written notice from the relevant Lender, agree to issue Notes to any
Term Lender to facilitate transactions of the type described in paragraph (g) above. 

(j) Neither Holdings nor any Borrower shall have the right to assign its rights hereunder or any interest herein without the prior written
consent of each of the Lenders (except, in the case of SRAC, pursuant to Section 6.01(d)). 
 SECTION 9.08. Confidentiality.
Neither the Agent nor any Lender may disclose to any Person any confidential, proprietary or non-public information of Holdings or the Borrowers furnished to the Agent or the Lenders by Holdings or the Borrowers (such information being referred to
collectively herein as the “Borrower Information”), except that each of the Agent and each of the Lenders may disclose Borrower Information (i) to its and its Affiliates’ employees, officers, directors, agents and advisors
to whom disclosure is required to enable the Agent or such Lender to perform its obligations under this Agreement and the other Loan Documents or in connection with the administration or monitoring of this Agreement and the other Loan Documents by
the Agent or such Lender (it being understood that the Persons to whom such disclosure is made will be informed of the confidential nature of such Borrower Information and instructed to keep such Borrower Information confidential on substantially
the same terms as provided herein), (ii) to the extent requested by any regulatory authority, (iii) to the extent required by applicable laws or regulations or by any subpoena or similar legal process, (iv) to any other party to this
Agreement and the other Loan Documents, (v) in connection with the exercise of any remedies hereunder or any suit, action or proceeding relating to this Agreement and the other Loan Documents or the enforcement of rights hereunder or
thereunder, (vi) subject to an agreement containing provisions substantially the same as those of this Section 9.08, to any assignee or participant, or any prospective assignee or participant, (vii) to the extent such Borrower
Information (A) is or becomes generally available to the public on a non-confidential basis other than as a result of a breach of this Section 9.08 by the Agent or such Lender, as the case may be, or (B) is or becomes available to the
Agent or such Lender on a non-confidential basis from a source other than Holdings, the Borrowers or any of their Subsidiaries and (viii) with the consent of the Borrowers. 

SECTION 9.09. Governing Law. This Agreement and the Notes shall be governed by, and construed in accordance with, the laws of the State
of New York without regard to conflicts of laws principles thereof but including Section 5-1401 and 5-1402 of the New York General Obligations Law. 

SECTION 9.10. Execution in Counterparts. This Agreement may be executed in any number of counterparts and by different parties hereto
in separate counterparts, each of which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement. Delivery of an executed counterpart of a signature page to this Agreement by
telecopier shall be effective as delivery of a manually executed counterpart of this Agreement. 
 SECTION 9.11. Jurisdiction, Etc.
(a) Each of the parties hereto hereby irrevocably and unconditionally submits, for itself and its property, to the non-exclusive jurisdiction of any New York State court or federal court of the United States of America sitting in New York City, and
any appellate court from any thereof, in any action or proceeding arising out of or relating to this Agreement or the other Loan Documents, or for recognition or enforcement of any judgment, and each of the parties hereto hereby irrevocably and
unconditionally agrees that all claims in respect of any such action or proceeding may be heard and determined in any such New York State court or, to the extent permitted by law, in such federal court. Holdings and each of the Borrowers hereby
irrevocably consents to the service of process in any action or proceeding in such courts by the mailing thereof by any parties hereto by registered or certified mail, postage prepaid, to Holdings or such Borrower at its address specified pursuant
to Section 9.02. Each of the parties hereto agrees that a final judgment in any such action or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law. Nothing in
this Agreement shall affect any right that any party may otherwise have to bring any action or proceeding relating to this Agreement or the other Loan Documents in the courts of any jurisdiction. 

  
 67 

 (b) Each of the parties hereto irrevocably and unconditionally waives, to the fullest extent it
may legally and effectively do so, any objection that it may now or hereafter have to the laying of venue of any suit, action or proceeding arising out of or relating to this Agreement or the other Loan Documents in any New York State or federal
court. Each of the parties hereto hereby irrevocably waives, to the fullest extent permitted by law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court. 

SECTION 9.12. WAIVER OF JURY TRIAL. EACH OF HOLDINGS, THE BORROWERS, THE AGENT AND THE LENDERS HEREBY IRREVOCABLY WAIVES ALL RIGHT TO
TRIAL BY JURY IN ANY ACTION, PROCEEDING OR COUNTERCLAIM (WHETHER BASED ON CONTRACT, TORT OR OTHERWISE) ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE OTHER LOAN DOCUMENTS OR THE ACTIONS OF THE AGENT,OR ANY LENDER IN THE NEGOTIATION,
ADMINISTRATION, PERFORMANCE OR ENFORCEMENT THEREOF. 
 SECTION 9.13. Release of Collateral or Guarantee Obligation.
(a) Notwithstanding anything to the contrary contained herein or in any other Loan Document, the Agent is hereby irrevocably authorized by each Lender (without requirement of consent of or notice to any Lender) to take (or request that the
Collateral Agent take), and hereby agrees to take (or request that the Collateral Agent take), any action requested by the Borrowers having the effect of releasing any Collateral or guarantee obligations (i) to the extent necessary to permit
consummation of any transaction not prohibited by any Loan Document (including, without limitation, any Permitted Disposition) or that has been consented to in accordance with Section 9.01; provided that the guarantee obligations of
Sears may not be released without the consent of the Required Lenders, or (ii) under the circumstances described in paragraph (b) below. 

(b) At such time as the Term LoanLoans and all other Obligations
shall have been paid in full in cash and the Commitments have been terminated, the Collateral shall be released from the Liens created by the Security Documents, and the Security Documents and all obligations (other than those expressly stated to
survive such termination) of the Collateral Agent and each Loan Party under the Security Documents shall terminate, all without delivery of any instrument or performance of any act by any Person. 

(c) Each of the Lenders irrevocably authorizes and directs the Agent to, and upon the request of the Borrower the Agent shall, take (or request
that the Collateral Agent take) such actions and enter into such agreements or instruments as may be necessary or appropriate to subordinate, or make pari passu or senior, as the case may be, any Lien on any Collateral or other property granted to
or held by the Agent or Collateral Agent under or in connection with any Loan Document to the Liens securing any First Lien Credit Agreement, other Priority Obligations or other Debt not constituting Priority Obligations, in each case to the extent
such Debt and Liens are otherwise permitted to be incurred hereunder. 
 SECTION 9.14. PATRIOT Act Notice. Each Lender that is
subject to the PATRIOT Act and the Agent (for itself and not on behalf of any Lender) hereby notifies each Borrower that pursuant to the requirements of the PATRIOT Act, it is required to obtain, verify and record information that identifies each
Borrower, which information includes the name and address of such Borrower and other information that will allow such Lender or the Agent, as applicable, to identify such Borrower in accordance with the PATRIOT Act. Each Borrower hereby agrees to
provide such information promptly upon the request of any Lender or the Agent. 
 SECTION 9.15. Integration. This Agreement and the
other Loan Documents represent the agreement of Holdings, the Borrowers, the Agent and the Lenders with respect to the subject matter hereof and thereof, and there are no promises, undertakings, representations or warranties by the Agent, the
Collateral Agent or any Lender relative to subject matter hereof and thereof not expressly set forth or referred to herein or in the other Loan Documents. 

SECTION 9.16. Replacement of Lenders. If any Lender requests compensation under Section 2.12 or if the Borrowers are
required to pay any additional amount to any Lender or any Governmental Authority for the account of any Lender pursuant to Section 2.15, if any Lender does not consent (a “Non-Consenting Lender”) to a proposed
amendment, waiver, consent or release with respect to any Loan Document that requires the consent of each Lender (or each Lender of a Class) and that has been approved by the Required Lenders (or a majority of such Class) or any Lender is a
Defaulting Lender, then the Borrowers may, at their sole expense and effort, upon notice to such 

  
 68 

 
Lender and the Agent, require such Lender to assign and delegate, without recourse (in accordance with and subject to the restrictions contained in, and consents required by,
Section 9.07), all of its interests, rights and obligations under this Agreement and the related Loan Documents to an assignee that shall assume such obligations (which assignee may be another Lender, if a Lender accepts such
assignment), provided that: 
 (a) the Borrowers shall have paid to the Agent the assignment fee specified in
Section 9.07; 
 (b) such Lender shall have received payment of an amount equal to
(i) the outstanding principal of its ratable share of the Term Loan, or (ii) the outstanding principal of
its Line of Credit Loans, as applicable, in each case plus accrued interest thereon, accrued fees and all other amounts payable to it hereunder and under the other Loan Documents from the assignee (to the extent of such outstanding principal and
accrued interest and fees) or the Borrowers (in the case of all other amounts); 
 (c) in the case of any such assignment
resulting from a claim for compensation under Section 2.12 or payments required to be made pursuant to Section 2.15, such assignment will result in a reduction in such compensation or payments thereafter; 

(d) with respect to the replacement of any Non-Consenting Lender, such amendment, waiver or consent can be effected as a result
of such assignment (together with all other assignments required by the Agent to be made pursuant to this paragraph); and 

(d) such assignment does not conflict with applicable laws. 

A Lender shall not be required to make any such assignment or delegation if, prior thereto, as a result of a waiver by such Lender or
otherwise, the circumstances entitling the Borrowers to require such assignment and delegation cease to apply. 
 SECTION 9.17. No
Advisory or Fiduciary Capacity. In connection with all aspects of each transaction contemplated hereby, the Loan Parties each acknowledge and agree that: (i) the credit facility provided for hereunder and any related arranging or other
services in connection therewith (including in connection with any amendment, waiver or other modification hereof or of any other Loan Document) are an arm’s-length commercial transaction between the Loan Parties, on the one hand, and the
Credit Parties, on the other hand, and each of the Loan Parties is capable of evaluating and understanding and understands and accepts the terms, risks and conditions of the transactions contemplated hereby and by the other Loan Documents (including
any amendment, waiver or other modification hereof or thereof); (ii) in connection with the process leading to such transaction, the each Credit Party is and has been acting solely as a principal and is not the financial advisor, agent or
fiduciary, for the Loan Parties or any of their respective Affiliates, stockholders, creditors or employees or any other Person; (iii) none of the Credit Parties has assumed or will assume an advisory, agency or fiduciary responsibility in
favor of the Loan Parties with respect to any of the transactions contemplated hereby or the process leading thereto, including with respect to any amendment, waiver or other modification hereof or of any other Loan Document (irrespective of whether
any of the Credit Parties has advised or is currently advising any Loan Party or any of its Affiliates on other matters) and none of the Credit Parties has any obligation to any Loan Party or any of its Affiliates with respect to the transactions
contemplated hereby except those obligations expressly set forth herein and in the other Loan Documents; (iv) the Credit Parties and their respective Affiliates may be engaged in a broad range of transactions that involve interests that differ
from those of the Loan Parties and their respective Affiliates, and none of the Credit Parties has any obligation to disclose any of such interests by virtue of any advisory, agency or fiduciary relationship; and (v) the Credit Parties have not
provided and will not provide any legal, accounting, regulatory or tax advice with respect to any of the transactions contemplated hereby (including any amendment, waiver or other modification hereof or of any other Loan Document) and each of the
Loan Parties has consulted its own legal, accounting, regulatory and tax advisors to the extent it has deemed appropriate. Each of the Loan Parties hereby waives and releases, to the fullest extent permitted by law, any claims that it may have
against each of the Credit Parties with respect to any breach or alleged breach of agency or fiduciary duty. 

  
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 ARTICLE X 

GUARANTEE 
 SECTION 10.01.
Guarantee. 
 (a) Each of the Guarantors (other than the Borrowers) hereby, jointly and severally, unconditionally and irrevocably,
guarantees to the Agent, for the ratable benefit of the Credit Parties and their respective successors, indorsees, transferees and assigns, the prompt and complete payment and performance by each Borrower when due (whether at the stated maturity, by
acceleration or otherwise) of the Obligations of such Borrower. Each Borrower hereby, jointly and severally, unconditionally and irrevocably, guarantees to the Agent, for the ratable benefit of the Credit Parties and their respective successors,
indorsees, transferees and assigns, the prompt and complete payment and performance by each other Borrower when due (whether at the stated maturity, by acceleration or otherwise) of the Obligations of each such other Borrower. 

(b) Anything herein or in any other Loan Document to the contrary notwithstanding, the maximum liability of each Guarantor (other than, as to
their respective Obligations, the Borrowers) hereunder and under the other Loan Documents shall in no event exceed the amount which can be guaranteed by such Guarantor under applicable federal and state laws relating to the insolvency of debtors
(after giving effect to the right of contribution established in Section 10.02). 
 (c) Each Guarantor agrees that the Obligations may
at any time and from time to time exceed the amount of the liability of such Guarantor hereunder without impairing the guarantee contained in this Article X or affecting the rights and remedies of any Agent or any other Credit Party hereunder. 

(d) The guarantee contained in this Article X shall remain in full force and effect until all the Obligations (other than contingent
indemnification obligations for which no claim shall have then been asserted) and the obligations of each Guarantor under the guarantee contained in this Article X shall have been satisfied by payment in full, notwithstanding that from time to time
during the term of this Agreement any of the Borrowers may be free from any Obligations. 
 (e) No payment made by any of the Borrowers, any
of the Guarantors, any other guarantor or any other Person or received or collected by the Agent or any other Credit Party from any of the Borrowers, any of the Guarantors, any other guarantor or any other Person by virtue of any action or
proceeding or any set-off or appropriation or application at any time or from time to time in reduction of or in payment of any of the Obligations shall be deemed to modify, reduce, release or otherwise affect the liability of any Guarantor
hereunder which shall, notwithstanding any such payment (other than any payment made by such Guarantor in respect of any of the Obligations or any payment received or collected from such Guarantor in respect of any of the Obligations), remain liable
for the Obligations up to the maximum liability of such Guarantor hereunder until each of the Obligations (other than contingent indemnification obligations for which no claim shall have then been asserted) are paid in full. 

SECTION 10.02. Right of Contribution. Each Guarantor (other than Holdings) hereby agrees that to the extent that a Guarantor (other
than Holdings) shall have paid more than its proportionate share of any payment made hereunder, such Guarantor shall be entitled to seek and receive contribution from and against any other Guarantor (other than Holdings) hereunder which has not paid
its proportionate share of such payment. Each Guarantor’s (other than Holdings’) right of contribution shall be subject to the terms and conditions of Section 10.03. The provisions of this Section 10.02 shall in no respect limit
the obligations and liabilities of any Guarantor to the Agent and the other Credit Parties, and each Guarantor shall remain liable to the Agent and the other Credit Parties for the full amount guaranteed by such Guarantor hereunder. This
Section 10.02 shall not apply to Sears in its capacity as a Guarantor of the Obligations of SRAC, or to Kmart in its capacity as a Guarantor of the Obligations of Kmart Corp. 

SECTION 10.03. No Subrogation. Notwithstanding any payment made by any Guarantor hereunder or any set-off or application of funds of
any Guarantor by the Agent or any other Credit Party, no Guarantor shall be entitled to be subrogated to any of the rights of the Agent or any other Credit Party against any Borrower or any other Guarantor or any collateral security or guarantee or
right of offset held by the Agent or any other Credit Party for the payment of any of the Obligations, nor shall any Guarantor seek or be entitled to seek any contribution, 

  
 70 

 
reimbursement or indemnification from any Borrower or any other Guarantor in respect of payments made by such Guarantor hereunder, and notwithstanding the foregoing, in the event that any
Guarantor possesses any such rights of subrogation, contribution, reimbursement or indemnification, all such rights shall in all respects be subordinated and junior in right of payment, until all amounts owing to the Agent and the other Credit
Parties by each of the Borrowers on account of its Obligations (other than contingent indemnification obligations for which no claim shall have then been asserted) are paid in full. If any amount shall be paid to any Guarantor on account of such
subrogation, contribution, reimbursement or indemnification rights at any time when any of the Obligations (other than contingent indemnification obligations for which no claim shall have then been asserted) shall not have been paid in full, such
amount shall be held by such Guarantor in trust for the Agent and the other Credit Parties, segregated from other funds of such Guarantor, and shall, forthwith upon receipt by such Guarantor, be transferred as the Agent directs in the exact form
received by such Guarantor (duly indorsed by such Guarantor to the Agent, if required), to be applied against the Obligations, whether matured or unmatured, in such order as the Agent may determine. 

SECTION 10.04. Amendments, etc. with Respect to Obligations. Each Guarantor shall remain obligated hereunder notwithstanding that,
without any reservation of rights against any Guarantor and without notice to or further assent by any Guarantor, any demand for payment of any of the Obligations made by the Agent or any other Credit Party may be rescinded by the Agent or such
other Credit Party and any of the Obligations continued, and any of the Obligations, or the liability of any other Person upon or for any part thereof, or any collateral security or guarantee therefor or right of offset with respect thereto, may,
from time to time, in whole or in part, be renewed, extended, amended, modified, accelerated, compromised, waived, surrendered or released by the Agent, the Collateral Agent or any other Credit Party, and this Agreement and the other Loan Documents
and any other documents executed and delivered in connection therewith may be amended, modified, supplemented or terminated, in whole or in part, as the Agent (or the Required Lenders or all Lenders, as the case may be) or any other Credit Party, if
applicable, may deem advisable from time to time, and any collateral security, guarantee or right of offset at any time held by the Agent or any other Credit Party for the payment of any of the Obligations may be sold, exchanged, waived, surrendered
or released. Neither the Agent nor any other Credit Party shall have any obligation to any Loan Party or other Person, to protect, secure, perfect or insure any Lien at any time held by it as security for any of the Obligations or for the guarantee
contained in this Article X or any property subject thereto. 
 SECTION 10.05. Guarantee Absolute and Unconditional. 

(a) Each Guarantor waives any and all notice of the creation, renewal, extension or accrual of any of the Obligations and notice of or proof of
reliance by the Agent or any other Credit Party upon the guarantee contained in this Article X or acceptance of the guarantee contained in this Article X; each of the Obligations, and any of them, shall conclusively be deemed to have been created,
contracted or incurred, or renewed, extended, amended or waived, in reliance upon the guarantee contained in this Article X; and all dealings between any of the Borrowers and any of the Guarantors, on the one hand, and the Agent and the other Credit
Parties, on the other hand, likewise shall be conclusively presumed to have been had or consummated in reliance upon the guarantee contained in this Article X. Each Guarantor waives diligence, presentment, protest, demand for payment and notice of
default or nonpayment to or upon any of the Borrowers or any of the Guarantors with respect to any of the Obligations. Each Guarantor understands and agrees that the guarantee contained in this Article X shall be construed as a continuing, absolute
and unconditional guarantee of payment without regard to (i) the validity or enforceability of this Agreement, any other Loan Document or any other document made, delivered or given in connection with any of the foregoing, any of the
Obligations or any other collateral security therefor or guarantee or right of offset with respect thereto at any time or from time to time held by the Agent or any other Credit Party, (ii) any defense, set-off or counterclaim (other than a
defense of payment or performance) which may at any time be available to or be asserted by any Borrower or any other Person against the Agent or any other Credit Party, or (iii) any other circumstance whatsoever (with or without notice to or
knowledge of any Borrower or such Guarantor) which constitutes, or might be construed to constitute, an equitable or legal discharge of any of the Borrowers for the Obligations, or of such Guarantor under the guarantee contained in this Article X,
in bankruptcy or in any other instance. When making any demand hereunder or otherwise pursuing its rights and remedies hereunder against any Guarantor, the Agent or any other Credit Party may, but shall be under no obligation to, make a similar
demand on or otherwise pursue such rights and remedies as it may have against the Borrowers, any other Guarantor or any other Person or against any collateral security or guarantee for any of the Obligations or any right of offset with respect
thereto, and any failure by the Agent or any other Credit Party to make any such demand, to pursue such other rights or remedies or to collect any payments from any of the Borrowers, any other Guarantor or any other Person or to realize upon any
such collateral security or guarantee or to exercise any 

  
 71 

 
such right of offset, or any release of any Borrower, any other Guarantor or any other Person or any such collateral security, guarantee or right of offset, shall not relieve any Guarantor of any
obligation or liability hereunder, and shall not impair or affect the rights and remedies, whether express, implied or available as a matter of law, of the Agent or any other Credit Party against any Guarantor. For the purposes hereof
“demand” shall include the commencement and continuance of any legal proceedings. 
 (b) The obligations of each Guarantor
hereunder shall not be discharged or impaired or otherwise affected by the failure of the Agent or any other Credit Party to assert any claim or demand or to enforce any remedy under this Agreement, any other Loan Document or any other document
made, delivered or given in connection with any of the foregoing or any other agreement, by any default, failure or delay, willful or otherwise, in the performance of any of the Obligations, or by any other act or omission that may or might in any
manner or to any extent vary the risk of any Guarantor or that would otherwise operate as a discharge of any Guarantor as a matter of law or equity (other than upon a written release of such Guarantor from the Agent or upon the indefeasible payment
in full in cash of all the Obligations). 
 (c) The Agent and the other Credit Parties may, at their election upon the occurrence and during
the continuance of an Event of Default, foreclose on any Collateral held by one or more of them by one or more judicial or non-judicial sales, accept an assignment of any such Collateral in lieu of foreclosure, compromise or adjust any part of the
Obligations, make any other accommodation with any Guarantor, or exercise any other right or remedy available to them against any Guarantor, without affecting or impairing in any way the liability of any other Guarantor hereunder except to the
extent that all the Obligations (other than contingent indemnification obligations for which no claim shall have then been asserted) have been indefeasibly paid in full in cash. Each Guarantor waives any defense arising out of any such election even
though such election operates, pursuant to applicable law, to impair or to extinguish any right of reimbursement or subrogation or other right or remedy of such Guarantor against any other Guarantor, as the case may be, or any Collateral. 

SECTION 10.06. Reinstatement. The guarantee contained in this Article X shall continue to be effective, or be reinstated, as the case
may be, if at any time payment, or any part thereof, of any of the Obligations is rescinded or must otherwise be restored or returned by the Agent or any other Credit Party upon the insolvency, bankruptcy, dissolution, liquidation or reorganization
of any Borrower or any Guarantor, or upon or as a result of the appointment of a receiver, intervenor or conservator of, or trustee or similar officer for, any Borrower or any Guarantor or any substantial part of its property, or otherwise, all as
though such payments had not been made. 
 SECTION 10.07. Payments. Each Guarantor hereby guarantees that payments hereunder will be
paid without set-off or counterclaim in Dollars, to such account as the Agent may designate in accordance with Section 9.02 of this Agreement. 

SECTION 10.08. Additional Guarantors. Each Subsidiary of the Borrowers that is required to become a party to this Agreement pursuant to
Section 6.01(i) shall become a Guarantor for all purposes of this Agreement upon execution and delivery by such Subsidiary of a joinder to this Agreement substantially in the form of Exhibit J hereto. 

SECTION 10.09. Releases. At the request and sole expense of the Borrowers, the Agent shall release any Guarantor from its obligations
hereunder, including, without limitation, its obligations pursuant to Article X hereof, and shall execute and deliver to the Borrowers all releases or other documentation reasonably necessary or desirable to evidence such release, in the event that
all the equity interest of such Guarantor shall be sold, transferred or otherwise disposed of in a transaction permitted by this Agreement and/or in the event that such Guarantor shall dispose of all or substantially all of its assets and shall
cease to own any Collateral. 
 SECTION 10.10. Additional Line of Credit
Lenders. Each Person that desires to become a party to this Agreement in order to make a Line of Credit Loan shall become a Line of Credit Lender for all purposes of this Agreement upon
execution and delivery by such prospective Line of Credit Lender of a joinder to this Agreement substantially in the form of Exhibit K hereto. 

[Remainder of page intentionally left blank] 

  
 72 

 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their
respective officers thereunto duly authorized, as of the date first above written. 
  

			
	SEARS HOLDINGS CORPORATION
		
	By:	 	 
	Name:	 	Robert A. Riecker
	Title:	 	Vice President, Controller and Chief Accounting Officer

  

			
	KMART CORPORATION
		
	By:	 	 
	Name:	 	Robert A. Riecker
	Title:	 	Vice President, Controller and Chief Accounting Officer

  

			
	SEARS ROEBUCK ACCEPTANCE CORPORATION
		
	By:	 	 
	Name:	 	Robert A. Riecker
	Title:	 	Vice President, Finance

 [Signature Page – Second Lien Credit Agreement] 

 
			
	A&E HOME DELIVERY, LLC
		
	By:	 	 
	Name:	 	Robert A. Riecker
	Title:	 	Vice President

  

			
	A&E LAWN & GARDEN, LLC
		
	By:	 	 
	Name:	 	Robert A. Riecker
	Title:	 	Vice President

  

			
	A&E SIGNATURE SERVICE, LLC
		
	By:	 	 
	Name:	 	Robert A. Riecker
	Title:	 	Vice President

  

			
	CALIFORNIA BUILDER APPLIANCES, INC.
		
	By:	 	 
	Name:	 	Robert A. Riecker
	Title:	 	Vice President

  

			
	FLORIDA BUILDER APPLIANCES, INC.
		
	By:	 	 
	Name:	 	Robert A. Riecker
	Title:	 	Vice President

  

			
	KLC, INC.
		
	By:	 	 
	Name:	 	Robert A. Riecker
	Title:	 	Vice President

  

			
	KMART HOLDING CORPORATION
		
	By:	 	 
	Name:	 	Robert A. Riecker
	Title:	 	Vice President, Controller and Chief Accounting Officer

  

			
	KMART OF MICHIGAN, INC.
		
	By:	 	 
	Name:	 	Robert A. Riecker
	Title:	 	Vice President

 [Signature Page – Second Lien Credit Agreement] 

 
			
	 KMART OF WASHINGTON LLC
 By: Kmart
Corporation, as Sole Member

		
	By:	 	 
	Name:	 	Robert A. Riecker
	Title:	 	Vice President, Controller and Chief Accounting Officer

  

			
	KMART OPERATIONS LLC
		
	By:	 	 
	Name:	 	Robert A. Riecker
	Title:	 	Vice President, Controller and Chief Accounting Officer

  

			
	 KMART STORES OF ILLINOIS LLC
 By:
Kmart Corporation, as Sole Member

		
	By:	 	 
	Name:	 	Robert A. Riecker
	Title:	 	Vice President, Controller and Chief Accounting Officer

  

			
	 KMART STORES OF TEXAS LLC
 By: Kmart
Corporation, as Sole Member

		
	By:	 	 
	Name:	 	Robert A. Riecker
	Title:	 	Vice President, Controller and Chief Accounting Officer

  

			
	 KMART.COM LLC
 By: BlueLight.com, as
Sole Member

		
	By:	 	 
	Name:	 	Lawrence J. Meerschaert
	Title:	 	Vice President

 [Signature Page – Second Lien Credit Agreement] 

 
			
	MYGOFER LLC
	By: Kmart Corporation, as Sole Member
		
	By:	 	 
	Name:	 	Robert A. Riecker
	Title:	 	Vice President, Controller and Chief Accounting Officer

  

			
	PRIVATE BRANDS, LTD.
		
	By:	 	 
	Name:	 	Robert A. Riecker
	Title:	 	Vice President

  

			
	SEARS BRANDS MANAGEMENT CORPORATION
		
	By:	 	 
	Name:	 	Robert A. Riecker
	Title:	 	Vice President

  

			
	SEARS HOLDINGS MANAGEMENT CORPORATION
		
	By:	 	 
	Name:	 	Robert A. Riecker
	Title:	 	Vice President, Controller and Chief Accounting Officer

  

			
	SEARS HOME IMPROVEMENT PRODUCTS, INC.
		
	By:	 	 
	Name:	 	Robert A. Riecker
	Title:	 	President

  

			
	SEARS OPERATIONS LLC
		
	By:	 	 
	Name:	 	Robert A. Riecker
	Title:	 	Vice President, Controller and Chief Accounting Officer

  

			
	SEARS PROTECTION COMPANY
		
	By:	 	 
	Name:	 	Robert A. Riecker
	Title:	 	Vice President

 [Signature Page – Second Lien Credit Agreement] 

 
			
	SEARS PROTECTION COMPANY (FLORIDA), L.L.C.
		
	By:	 	 
	Name:	 	Robert A. Riecker
	Title:	 	Vice President

  

			
	SEARS, ROEBUCK AND CO.
		
	By:	 	 
	Name:	 	Robert A. Riecker
	Title:	 	Vice President, Controller and Chief Accounting Officer

  

			
	SEARS, ROEBUCK DE PUERTO RICO, INC.
		
	By:	 	 
	Name:	 	Robert A. Riecker
	Title:	 	Vice President

  

			
	SOE, INC.
		
	By:	 	 
	Name:	 	Robert A. Riecker
	Title:	 	Vice President

  

			
	STARWEST, LLC
		
	By:	 	 
	Name:	 	Robert A. Riecker
	Title:	 	Vice President

  

			
	A&E FACTORY SERVICE, LLC
		
	By:	 	                             
                                       
	Name:	 	Robert A. Riecker
	Title:	 	Vice President

 [Signature Page – Second Lien Credit Agreement] 

 
			
	 JPP, LLC,
 as Agent and as a
Lender

		
	By:	 	 
	Name:	 	 
	Title:	 	 

  

			
	 JPP II, LLC,
 as a
Lender

		
	By:	 	 
	Name:	 	 
	Title:	 	 

 [Signature Page – Second Lien Credit Agreement] 

 EXHIBIT B 

ASSIGNMENT AND ACCEPTANCE 

This Assignment and Acceptance (this “Assignment and Acceptance”) is dated as of the Effective Date set forth below and is
entered into by and between [the][each]1 Assignor identified in item 1 below ([the][each, an] “Assignor”) and [the][each]2
Assignee identified in item 2 below ([the][each, an] “Assignee”). [It is understood and agreed that the rights and obligations of [the Assignors][the Assignees]3 hereunder are
several and not joint.]4 Capitalized terms used but not defined herein shall have the meanings given to them in the Credit Agreement identified below (the “Credit Agreement”),
receipt of a copy of which is hereby acknowledged by [each, the] Assignee. The Standard Terms and Conditions set forth in Annex 1 attached hereto are hereby agreed to and incorporated herein by reference and made a part of this Assignment and
Acceptance as if set forth herein in full. 
 For an agreed consideration, [the][each] Assignor hereby irrevocably sells and assigns to [the
Assignee][the respective Assignees], and [the][each] Assignee hereby irrevocably purchases and assumes from [the Assignor][the respective Assignors], subject to and in accordance with the Standard Terms and Conditions and the Credit Agreement, as of
the Effective Date inserted by the Agent as contemplated below (i) the portion of [the Assignor’s][the respective Assignors’] rights and obligations in [its capacity as a
[Term Lender][Line of Credit Lender]][their respective capacities as
[Term Lenders][Line of Credit Lenders]] under the Credit Agreement and any other documents or instruments delivered pursuant
thereto identified below and (ii) to the extent permitted to be assigned under applicable law, all claims, suits, causes of action and any other right of [the Assignor (in its capacity as a
[Term Lender][Line of Credit Lender])][the respective Assignors (in their respective capacities as
[Term Lenders][Line of Credit Lenders])] against any Person, whether known or unknown, arising under or in connection with the
Credit Agreement, any other documents or instruments delivered pursuant thereto or the loan transactions governed thereby or in any way based on or related to any of the foregoing, including, but not limited to, contract claims, tort claims,
malpractice claims, statutory claims and all other claims at law or in equity related to the rights and obligations sold and assigned pursuant to clause (i) above (the rights and obligations sold and assigned by [the][any] Assignor to
[the][any] Assignee pursuant to clauses (i) and (ii) above being referred to herein collectively as [the][an] “Assigned Interest”). Each such sale and assignment is without recourse to [the][any] Assignor and, except as
expressly provided in this Assignment and Acceptance, without representation or warranty by [the][any] Assignor. 
  

							
	1.    	  	Assignor[s]:	  	  
	  	

  
  

	1 	For bracketed language here and elsewhere in this form relating to the Assignor(s), if the assignment is from a single Assignor, choose the first bracketed language. If the assignment is from multiple Assignors, choose
the second bracketed language. 

	2 	For bracketed language here and elsewhere in this form relating to the Assignee(s), if the assignment is to a single Assignee, choose the first bracketed language. If the assignment is to multiple Assignees, choose the
second bracketed language. 

	3 	Select as appropriate. 

	4 	Include bracketed language if there are either multiple Assignors or multiple Assignees. 

							
				
		  		  	  
	  	
	2.    	  	Assignee[s]:	  	  
	  	
				
		  		  	  
	  	

  

	3.	Borrowers: Sears Roebuck Acceptance Corp., a Delaware corporation, and Kmart Corporation, a Michigan corporation. 

  

	4.	Agent: JPP, LLC, a Delaware limited liability company, as the Agent under the Credit Agreement. 

  

	5.	Credit Agreement: [Second Lien Credit Agreement dated as of September 1, 2016] (as such
may be amended, modified, supplemented or restated hereafter, the “Credit Agreement”) by, among others, Sears Holdings Corporation, the Borrowers, certain subsidiaries of Sears Holding Corporation, the Term Lenders
party thereto and JPP, LLC, as Agent. 

  

	6.	Assigned Interest[s]: 

  

																											
	 Assignor[s]5
	  	
Assignee[s]6
	  	Aggregate
Amount of
Term Loan
for all Term
Lenders7	 	  	Amount of
Term Loan
Assigned8	 	  	Percentage
Assigned of
Term Loan9	 	  	Aggregate
Amount of 
Line
of Credit Loans
for all Line of
Credit 
Lenders10	 	  	Amount
of
Line of Credit
Loans Assigned11	 	  	Percentage
Assigned 
of
Line of Credit
Loan12	 
		  		  	 	$        	 	  	 	$        	 	  	 	        %	 	  	 	$        	 	  	 	$        	 	  	 	        %	 
		  		  	 	$        	 	  	 	$        	 	  	 	        %	 	  	 	$        	 	  	 	$        	 	  	 	        %	 

  

	[7.	Trade Date:
                    
]1013 

Effective Date: [            ] [TO BE INSERTED BY AGENT AND WHICH SHALL BE THE
DATE OF DELIVERY OF THIS ASSIGNMENT AND ACCEPTANCE FOR RECORDATION OF TRANSFER IN THE REGISTER THEREFOR.] 
  

 

	5 	List each Assignor, as appropriate. 

	6 	List each Assignee, as appropriate. 

	7 	Amounts in this column and in the column immediately to the right to be adjusted by the counterparties to take into account any payments or prepayments made between the Trade Date and the Effective Date.

	8 	Subject to minimum amount requirements pursuant to Section 9.07(a) of the Credit Agreement. 

	9 	Set forth, to at least 4 decimals, as a percentage of the Term Loan of all applicable Term Lenders thereunder. 

	10 	Amounts in this column and in the column immediately to the right to be adjusted by the counterparties to take into account any payments or prepayments made
between the Trade Date and the Effective Date. 

	11 	Subject to minimum amount requirements pursuant to Section 9.07(a) of the Credit Agreement.  

	12 	Set forth, to at least 4 decimals, as a percentage of the Loan of all applicable Lenders thereunder. 

	1013 	To be completed if the Assignor and the Assignee intend that the minimum assignment amount is to be determined as of the Trade Date. 

 The terms set forth in this Assignment and Acceptance are hereby agreed to: 

 

			
	ASSIGNOR
	[NAME OF ASSIGNOR]
	
	By:                                   
                                         
                   
	Name:	 	                                      
                                         
           
	Title:	 	                                      
                                         
           
	
	ASSIGNEE
	[NAME OF ASSIGNEE]
	
	By:                                   
                                         
                   
	Name:	 	  

	Title:	 	  

  

			
	[Consented to and]1114
Accepted:
	
	JPP, LLC, as
	Agent
	
	By:                                   
                                         
             
	Name:	 	                                      
                                         
     
	Title:	 	                                      
                                         
     

  
  

	1114 
	To the extent that the Agent’s consent is required under Section 9.07(a) of the Credit Agreement. 

	
	[Consented to:]1215
	
	SEARS ROEBUCK ACCEPTANCE CORP., as a Borrower
	
	By:                                     
                                         
           
	Name:                                     
                                         
      
	Title:                                     
                                         
         
	
	KMART CORPORATION, as a Borrower
	
	By:                                     
                                         
           
	Name:                                     
                                         
      
	Title:                                     
                                         
         

  
  

	1215 
	To the extent required under Section 9.07(a) of the Credit Agreement. 

 ANNEX 1 TO ASSIGNMENT AND ACCEPTANCE 

STANDARD TERMS AND CONDITIONS FOR 

ASSIGNMENT AND ACCEPTANCE 
 1.
Representations and Warranties. 
 1.1. Assignor. [The][Each] Assignor (a) represents and warrants that (i) it is the
legal and beneficial owner of [the][[the relevant] Assigned Interest, (ii) [the][such] Assigned Interest is free and clear of any lien, encumbrance or other adverse claim and (iii) it has full power and authority, and has taken all action
necessary, to execute and deliver this Assignment and Acceptance and to consummate the transactions contemplated hereby; and (b) assumes no responsibility with respect to (i) any statements, warranties or representations made in or in
connection with the Credit Agreement or any other Loan Document, (ii) the execution, legality, validity, enforceability, genuineness, sufficiency or value of the Loan Documents or any collateral thereunder, (iii) the financial condition of
the Loan Parties or any other Person obligated in respect of any Loan Document or (iv) the performance or observance by the Loan Parties or any other Person of any of their respective obligations under any Loan Document. 

1.2. Assignee. [The][Each] Assignee (a) represents and warrants that (i) it has full power and authority, and has taken all
action necessary, to execute and deliver this Assignment and Acceptance and to consummate the transactions contemplated hereby and to become a Term Lender under the Credit Agreement, (ii) it meets all the requirements to be an
Eligible Assignee under the Credit Agreement (subject to such consents, if any, as may be required under Section 9.07(a) of the Credit Agreement), (iii) from and after the Effective Date, it shall be bound by the provisions of the Credit
Agreement as a Term Lender thereunder and, to the extent of [the][the relevant] Assigned Interest, shall have the obligations of a Term Lender thereunder, (iv) it is sophisticated with respect to decisions to
acquire assets of the type represented by [the][such] Assigned Interest and either it, or the Person exercising discretion in making its decision to acquire [the][such] Assigned Interest, is experienced in acquiring assets of such type, (v) it
has received a copy of the Credit Agreement, and has received or has been accorded the opportunity to receive copies of the most recent financial statements delivered pursuant to Section 6.01(j) thereof, as applicable, and such other documents
and information as it deems appropriate to make its own credit analysis and decision to enter into this Assignment and Acceptance and to purchase [the][such] Assigned Interest, (vi) it has, independently and without reliance upon the Agent or
any other Lender and based on such documents and information as it has deemed appropriate, made its own credit analysis and decision to enter into this Assignment and Acceptance and to purchase [the][such] Assigned Interest, and (vii) if it is
a Lender that is organized under the laws of a jurisdiction other than that in which the Borrowers are residents for tax purposes, to the extent reasonably requested by the Agent, attached hereto are duly completed and executed by [the][such]
Assignee, any U.S. Internal Revenue Service forms required under Section 2.15 of the Credit Agreement; and (b) agrees that (i) it will, independently and without reliance upon the Agent, [the][any] Assignor or any other Lender, and
based on such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under the Loan Documents, and (ii) it will perform in accordance with their terms all of
the obligations which by the terms of the Loan Documents are required to be performed by it as a Term Lender. 

 2. Payments. From and after the
First Amendment Effective Date, the Agent shall make all payments in respect of [the][each] Assigned Interest (including payments of principal, interest, fees and other amounts) to [the][the relevant] Assignor for amounts which have accrued up
to but excluding the Effective Date and to [the][the relevant] Assignee for amounts which have accrued from and after the Effective Date. 

3. General Provisions. This Assignment and Acceptance shall be binding upon, and inure to the benefit of, the parties hereto and their
respective successors and assigns. This Assignment and Acceptance may be executed in any number of counterparts, which together shall constitute one instrument. Delivery of an executed counterpart of a signature page of this Assignment and
Acceptance by telecopy shall be effective as delivery of a manually executed counterpart of this Assignment and Acceptance. This agreement shall be governed by, and construed in accordance with, the laws of the State of New York. 

4. Fees. This Assignment and Acceptance shall be delivered to the Agent with a processing and recordation fee of $3,500, to the extent
required by the terms of the Credit Agreement, unless such fee has been waived by the Agent in its sole discretion. 

 EXHIBIT I 

Form of Compliance Certificate 

COMPLIANCE CERTIFICATE 
 Date of
Certificate:             , 20         
  

	To:	JPP, LLC, as Agent 

 c/o ESL Investments, Inc., 

1170 Kane Concourse, Suite 200 

Bay Harbor Islands, FL 33154 

Attention: Edward S. Lampert, CEO 

Ladies and Gentlemen: 
 Reference is made to a
certain Second Lien Credit Agreement, dated as of September 1, 2016 (as modified, amended, supplemented or restated and in effect from time to time, the “Credit Agreement”) by, among others, Sears Holdings Corporation, a
Delaware corporation (“Holdings”), Sears Roebuck Acceptance Corp., a Delaware corporation, and Kmart Corporation, a Michigan corporation (individually, a “Borrower”, and collectively, the
“Borrowers”), the lenders from time to time party thereto and JPP, LLC, a Delaware limited liability company, as administrative agent and collateral administrator (the “Agent”). Capitalized terms used herein and not
defined herein shall have the meanings assigned to such terms in the Credit Agreement. 
 The undersigned, as a duly authorized and acting
Authorized Officer of Holdings, hereby certifies on behalf of Holdings and each of the other Loan Parties as of the date hereof the following: 
  

	1.	No Defaults or Events of Default. 

  

	 	(a)	Since             (the date of the last similar certification), and except as set forth in Appendix I, no Default or Event of Default has occurred.

  

	 	(b)	If a Default or Event of Default has occurred since             (the date of the last similar certification), the Loan Parties have taken or propose to take
those actions with respect to such Default or Event of Default as described on said Appendix I. 

  

	2.	Financial Calculations. 

  

	 	(a)	Attached hereto as Appendix IIA are reasonably detailed calculations necessary to determine the Fixed Charge Ratio as of the last day of the [fiscal quarter][fiscal year] ended
            (whether or not compliance therewith is then required under Section 6.03 of the Credit Agreement). 

	 	(b)	Attached hereto as Appendix IIB are reasonably detailed calculations necessary to determine Excess Cash Flow for the fiscal year ended             .1316 

 

	3.	Financial Statements. 

  

	 	[Use	following paragraph (a) for fiscal quarter-end financial statements] 

  

	 	(a)	Attached hereto as Appendix III are the unaudited consolidated balance sheet of Holdings and its Subsidiaries for the fiscal quarter ended             ,
and the consolidated balance sheet of Holdings and its domestic Subsidiaries as of the end of such fiscal quarter, and the consolidated statements of income and cash flows of Holdings and its Subsidiaries and the consolidated statements of income
and cash flows of Holdings and its domestic Subsidiaries for the period commencing at the end of the previous fiscal year and ending with the end of such quarter (or if not attached, a copy of the quarterly report filed with the SEC on form 10-Q,
reflecting such consolidated balance sheets and consolidated statements of income and cash flows, has been delivered to the Agent in accordance with Section 9.02(b) of the Credit Agreement). 

 

	 	[Use	following paragraphs (b) and (c) for fiscal year-end financial statements] 

  

	 	(b)	Attached hereto as Appendix III are the audited consolidated balance sheet of Holdings and its Subsidiaries for the fiscal year ended             , and
the consolidated statements of income and cash flows of Holdings and its Subsidiaries for such fiscal year, accompanied by a report without a “going concern” or like qualification or exception, or qualification arising out of the scope of
the audit, which report has been prepared by a Board-appointed auditor of national standing (or if not attached, a copy of the annual report filed with the SEC on form 10-K, reflecting such consolidated balance sheet and consolidated statements of
income and cash flows of Holdings and its Subsidiaries, has been delivered to the Agent in accordance with Section 9.02(b) of the Credit Agreement). 

  

	 	(c)	Attached hereto as Appendix IV are the unaudited consolidated balance sheet of Holdings and its domestic Subsidiaries for the fiscal year ended
            , and the consolidated statements of income and cash flows of Holdings and its domestic Subsidiaries for such fiscal year. 

 

	4.	No Material Accounting Changes, Etc. 

  

	 	(a)	The financial statements furnished to the Agent for the [fiscal quarter/fiscal year] ended             were prepared in accordance with GAAP.

  

	 	(b)	Except as set forth in Appendix V, there has been no change in GAAP used in the preparation of the financial statements furnished to the Agent for the [fiscal quarter/fiscal year] ended
            . If any such change has occurred, a statement of reconciliation conforming such financial statements to GAAP is attached hereto in Appendix V if necessary for the
calculation of the Fixed Charge Ratio. 

  
  

	1316 
	Include only with fiscal year-end financial statements 

	5.	Collateral Coverage.  

  

	 	(a)	Set forth below are the Borrowing Base and the Total Extensions of Credit as of the last day of the [fiscal quarter][fiscal year] ended             .

 Borrowing Base:
                             

Total Extensions of Credit:              

[Signature page follows] 

 IN WITNESS WHEREOF, a duly authorized and acting Authorized Officer of Holdings, on behalf of
Holdings and each of the other Loan Parties, has duly executed this Compliance Certificate as of             , 20    . 

 

	
	HOLDINGS:
	
	SEARS HOLDINGS CORPORATION
	
	By:                                     
                                         
                  
	Name:
	Title:

 APPENDIX I 

Except as set forth below, no Default or Event of Default has occurred. [If a Default or Event of Default has occurred, the following
describes the nature of the Default or Event of Default in reasonable detail and the steps, if any, being taken or contemplated by the Loan Parties to be taken on account thereof.] 

 APPENDIX IIA 

A. Calculation of Fixed Charge Ratio: Required whether or not compliance under Section 6.03 of the Credit Agreement is then required. Calculated
for the most recently ended four fiscal quarters. 
  

							
	1.	 	Adjusted Consolidated EBITDA1417 for such period (all calculated on a Consolidated basis in accordance with GAAP (excluding any non-cash income already deducted from Consolidated Net Income in the calculation of Adjusted Consolidated EBITDA in a
prior period)):
				
		 	(a)	  	Consolidated Net Income for such period:	  	  

				
		 		  	Plus the following, without duplication and to extent deducted in determining Consolidated Net Income for such period:	  	
				
		 	(b)	  	Consolidated Interest Expense for such period:	  	  

				
		 	(c)	  	income tax expense for such period:	  	  

				
		 	(d) 	  	all amounts attributable to depreciation and amortization expense for such period:	  	  

				
		 	(e) 	  	any items of loss resulting from the sale of assets other than in the ordinary course of business for such period:	  	  

				
		 	(f) 	  	any non-cash charges for tangible or intangible impairments or asset write downs for such period (excluding any write downs or write-offs of Inventory other than write-downs or write-offs of Inventory related to up to 100 store
closings in any four consecutive fiscal quarters):	  	  

				
		 	(g) 	  	any other non-cash charges for such period (including non-cash charges arising from share-based payments	  	

  

	1417 
	 For the purposes of calculating Adjusted Consolidated EBITDA in connection with any determination of the Fixed
Charge Ratio, (i) if at any time during the applicable four-quarter period, Holdings or any of its Subsidiaries shall have made any Material Disposition, the Adjusted Consolidated EBITDA for such fiscal quarter shall be reduced by an amount
equal to the Adjusted Consolidated EBITDA (if positive) attributable to the property that is the subject of such Material Disposition for such period or increased by an amount equal to the Adjusted Consolidated EBITDA (if negative) attributable
thereto for such fiscal period and (ii) if at any time during the applicable four-quarter period, Holdings or any of its Subsidiaries shall have made a Material Acquisition, Adjusted Consolidated EBITDA for such period shall be calculated after
giving pro forma effect thereto as if such Material Acquisition occurred on the first day of such period. As used in this definition, “Material Acquisition” means any acquisition of property or series of related acquisitions of property
that (a) constitutes assets comprising all or substantially all of an operating unit of a business or constitutes all or substantially all of the common stock of a Person and (b) involves the payment of consideration by Holdings and its
Subsidiaries in excess of $100,000,000; and “Material Disposition” means any Disposition of property or series of related Dispositions of property that yields gross proceeds to Holdings or any of its Subsidiaries in excess of $100,000,000.

							
				
		 		  	to employees or directors, but excluding (1) any non-cash charge already added back to Consolidated Net Income in the calculation of Adjusted Consolidated EBITDA in a prior period, (2) any non-cash
charge that relates to the write-down or write-off of Inventory other than write-downs or write-offs of Inventory related to up to 100 store closings in any four consecutive fiscal quarters, and (3) non-cash charges for which a cash payment is
required to be made in that or any other period):	  	  

				
		 		  	Minus the following, without duplication and to the extent included in Consolidated Net Income for such period:	  	
				
		 	(h) 	  	any items of gain resulting from the sale of assets other than in the ordinary course of business for such period:	  	  

				
		 	(i) 	  	any cash payments made during such period in respect of non-cash charges described in Line 1(g) above taken in a prior period:	  	  

				
		 	(j)	  	any non-cash items of income for such period:	  	  

				
		 	(k) 	  	Adjusted Consolidated EBITDA [Line 1(a), plus the sum of Lines 1(b) through 1(g), minus the sum of Lines 1(h) through 1(j)]:	  	  

			
	2.	 	Minus the following:	  	
				
		 	(a) 	  	the unfinanced portion of Capital Expenditures made during such period (but including Capital Expenditures financed with proceeds of the revolving facility under the First Lien Credit Agreement):	  	  

				
		 	(b) 	  	 taxes paid in cash net of refunds during such period (but in no event less than zero):
	  	  

			
	3.	 	Line 1(k), minus Lines 2(a) and 2(b):	  	  

			
	4.	 	 Fixed Charges for such period (all calculated on a Consolidated basis):
	  	
				
		 	(a)	  	 Consolidated Interest Expense paid or payable in cash:
	  	  

				
		 		  	Plus	  	
				
		 	(b) 	  	scheduled principal payments on Debt made during such period:	  	  

							
		 		  	Plus	  	
				
		 	(c) 	  	Capital Lease Obligation payments made during such period:	  	  

				
		 	(d)	  	 Fixed Charges [The sum of Lines 4(a) through 4(c)]:
	  	  

			
	5.	 	 FIXED CHARGE RATIO AS OF THE FISCAL [QUARTER]

[YEAR] ENDED                     [Line 3 divided by
Line 4(d)]:
	  	  

 B. Fixed Charge Ratio Covenant: During the continuance of a Covenant Compliance Event, each of Holdings and the
Borrowers will not permit the Fixed Charge Ratio as of the last day of any fiscal quarter of Holdings to be less than 1.0 to 1.0. 
  

							
	1.	  	Is covenant required to be tested?	  	Yes                                  	  	No                                    

	2.	  	If covenant is required to be tested, in compliance?	  	Yes                                  	  	No                                    

  

 APPENDIX IIB 

A. Calculation of Excess Cash Flow: The sum, without duplication, of: 
  

					
	 1.      
	 	Consolidated Net Income for such fiscal year (excluding gains and losses from the sale of assetsor businesses outside the ordinary course of businessincluded in the calculation of such Consolidated Net Income):	  	$                                    

			
		 	Plus	  	
			
	2.	 	 expenses reducing Consolidated Net Income incurred or made with respect to any Plan:
	  	$                                    

			
		 	Plus	  	
			
	3.	 	 depreciation, amortization and other non-cash charges reducing Consolidated Net Income (excluding any non-cashcharges to the extent they
represent an accrual or reserve forpotential cash charges in any future period or amortization ofa prepaid cash gain that was paid in a prior period and excluding any such charges which were excluded in the calculation of Consolidated Net Income as
set forth in Line A.1. above):
	  	$                                    

			
	4.	 	 The sum of Lines 1-3:
	  	$                                    

			
		 	 Minus the sum, without duplication, of the following:
	  	
			
	5.	 	 contributions made in cash to any Plan: 
	  	$                                    

			
		 	 Plus
	  	
			
	6.	 	 non-cash gains and other non-cash items increasing Consolidated Net Income (other than any such gains and items which were excluded in the
calculation of Consolidated Net Income as set forth in Line A.1. above):
	  	$                                    

			
		 	Plus	  	
			
	7.	 	 the amount of scheduled payments and mandatory prepayments of principal, interest, fees, premiums and make whole or prepayment payments on
account of Debt for borrowed money made in cash (excluding any repayments of Obligations and of prepayments of any revolving credit facility (unless there is an equivalent permanent reduction in the commitments thereunder and excluding any such
payments or prepayments to the extent financed with the proceeds of Debt)), and scheduled payments and mandatory prepayments of Capital Lease Obligations
	  	

					
			
		 	(excluding any interest expense portion thereof deducted in the calculation of Consolidated Net Income and excluding any such payments or prepayments to the extent financed with the proceeds of Debt):	  	$                                    

			
		 	Plus	  	
			
	8.	 	the amount of optional prepayments of principal on account of Priority Obligations or the Term Loan made in cash during such fiscal year (as a result of which, in the case of the repayments under any revolving credit facility, the
revolving credit commitments have been permanently reduced correspondingly), except to the extent that such prepayments are funded with Debt:	  	$                                    

			
		 	Plus	  	
			
	9.	 	Capital Expenditures made in cash during such fiscal year, except to the extent financed with the proceeds of Debt:	  	$                                    

			
		 	Plus	  	
			
	10.	 	the amount of Permitted Acquisitions and Permitted Investments (pursuant to clauses (d), (i), (o), (q) and (r) of the definition thereof) made in cash during such fiscal year, except to the extent financed with the proceeds of
Debt:	  	$                                    

			
	11.	 	The sum of Lines 5-10:	  	$                                    

			
	12.	 	Excess Cash Flow (Line 4 minus Line 11):	  	$                                    

 APPENDIX III 

 APPENDIX IV 

 APPENDIX V 

 Exhibit J 

FORM OF JOINDER AGREEMENT 

JOINDER AGREEMENT, dated as of [                ,
20        ], made by
[                                        ] (the
“Additional Guarantor”), in favor of [        ], as agent (in such capacity, the “Agent”), for the banks, financial institutions and other institutional lenders (the
“Lenders”) parties to the Second Lien Credit Agreement referred to below. All capitalized terms not defined herein shall have the meaning ascribed to them in such Second Lien Credit Agreement. 

W I T N E S S E T H : 

WHEREAS, Sears Holdings Corporation (“Holdings”), Sears Roebuck Acceptance Corp. (“SRAC”), Kmart Corporation
(“Kmart Corp.” and, together with SRAC, the “Borrowers”), the Lenders and JPP, LLC, as administrative agent and collateral administrator, have entered into a certain Second Lien Credit Agreement, dated as of
September 1, 2016 (as amended, supplemented or otherwise modified from time to time, the “Second Lien Credit Agreement”); 

WHEREAS, the Second Lien Credit Agreement requires the Additional Guarantor to become a party to the Second Lien Credit Agreement; and 

WHEREAS, the Additional Guarantor has agreed to execute and deliver this Joinder Agreement in order to become a party to the Second Lien
Credit Agreement; 
 NOW, THEREFORE, IT IS AGREED: 

1. Second Lien Credit Agreement. By executing and delivering this Joinder Agreement, the Additional Guarantor, as provided in
Section 10.08 of the Second Lien Credit Agreement, hereby becomes a party to the Second Lien Credit Agreement as a Guarantor thereunder with the same force and effect as if originally named therein as a Guarantor and, without limiting the
generality of the foregoing, hereby expressly assumes all obligations and liabilities of a Guarantor thereunder. 
 2. Governing Law.
THIS JOINDER AGREEMENT SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK, WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAW BUT INCLUDING SECTIONS 5-1401 and 5-1402 OF THE NEW YORK GENERAL
OBLIGATIONS LAW. 
 [Remainder of Page intentionally left blank] 

 IN WITNESS WHEREOF, the undersigned has caused this Joinder Agreement to be duly executed and
delivered as of the date first above written. 
  

			
	[ADDITIONAL GUARANTOR]
		
	By:	 	  

		 	Name:
		 	Title:

 EXHIBIT K 

FORM OF LINE OF CREDIT LENDER JOINDER AGREEMENT 

This Joinder Agreement (this “Joinder”) is made as of
[                , 20[        ]], by and among the undersigned (the “New Line of Credit Lender”), Sears Holdings
Corporation, a Delaware corporation (“Holdings”), Sears Roebuck Acceptance Corp., a Delaware corporation (“SRAC”), and Kmart Corporation, a Michigan corporation (“Kmart”, and together with SRAC, the
“Borrowers”), and JPP, LLC, a Delaware limited liability company, as administrative agent and collateral administrator under the Credit Agreement referred to below (the “Agent”), in consideration of the mutual covenants herein
contained and benefits to be derived herefrom. 
 W I T N E S S E T H : 

 

	 	A.	Reference is made to that certain Second Lien Credit Agreement, dated as of September 1, 2016, as amended by that certain First Amendment to Second Lien
Credit Agreement, dated as of July 7, 2017 (as such may have been further amended, modified, supplemented or restated, the “Credit Agreement”), by and among, among others, Holdings, the Borrowers and the Agent. Capitalized terms used
but not defined herein shall have the meanings set forth in the Credit Agreement. 

  

	 	B.	The undersigned New Line of Credit Lender desires to become a party to the Credit Agreement, and to be bound by the terms of the Credit Agreement and the other
Loan Documents, so that it may from time to time make Line of Credit Loans to the Borrowers on the terms set forth in the applicable Line of Credit Loan Proposal. 

NOW, THEREFORE, the parties hereto hereby agree as follows: 

 

	1.	Joinder and Assumption of Obligations. Effective as of the Joinder Effective Date (as defined below) and subject to the terms and conditions set forth in this
Joinder and in the Credit Agreement, the New Line of Credit Lender acknowledges and agrees: 

  

	 	a.	to join in the execution of, and become a party to, the Credit Agreement as a Line of Credit Lender, as indicated with its signature below; 

 

	 	b.	to be bound by all representations, warranties, covenants, agreements, liabilities and acknowledgments of a Line of Credit Lender under the Credit Agreement and
the other Loan Documents, in each case, with the same force and effect as if such New Line of Credit Lender was a signatory to the Credit Agreement and the other Loan Documents and was expressly named as a Line of Credit Lender therein;

  

	 	c.	to have all rights and obligations of a Line of Credit Lender under the Credit Agreement and other Loan Documents. 

	2.	New Line of Credit Lender Acknowledgement.  

  

	 	a.	The New Line of Credit Lender (i) confirms that it has received a copy of the Credit Agreement, together with copies of the financial statements referred to
in Section 6.01 thereof and such other documents and information as it has deemed appropriate to make its own credit analysis and decision to enter into this Joinder; (ii) agrees that it will, independently and without reliance upon the
Agent or any other Lender, and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under the Credit Agreement, including making or not making Line
of Credit Loans from time to time; (iii) effective as of the date hereof, appoints and authorizes the Agent and the Collateral Agent to take such action as agent on its behalf and to exercise such powers under the Credit Agreement as are
delegated to the Agent and the Collateral Agent by the terms thereof, together with such powers as are reasonably incidental thereto; (iv) effective as of the date hereof, agrees that it will perform in accordance with their terms all of the
obligations which, by the terms of the Credit Agreement, are required to be performed by it as a Line of Credit Lender; and (v) specifies as its lending office (and address for notices) the office set forth beneath its signature below.

  

	 	b.	The New Line of Credit Lender further acknowledges and agrees that the Agent and the other Credit Parties: (i) make no representations or warranties and
assume no responsibility with respect to any statements, warranties or representations made in, or in connection with, the Credit Agreement or any other Loan Document or any other instrument or document furnished pursuant thereto or the execution,
legality, validity, enforceability, genuineness, sufficiency or value of the Credit Agreement or any other Loan Document or any other instrument or document furnished pursuant thereto; and (ii) make no representation or warranty and assume no
responsibility with respect to the financial condition of any Loan Party or the performance or observance by any Loan Party of any of their respective obligations under the Credit Agreement or any other Loan Document or any other instrument or
document furnished pursuant thereto. 

  

	3.	Conditions Precedent to Effectiveness. This Joinder shall become effective on the date (the “Joinder Effective Date”) when it has been duly executed by
each of the parties hereto and the Agent has received counterparts hereof that, when taken together, bear the signatures of each of the other parties hereto. 

  

	4.	Miscellaneous.  

  

	 	a.	This Joinder may be executed in multiple counterparts, each of which shall constitute an original and together which shall constitute but one and the same
instrument. Delivery of an executed counterpart of a signature page of this Joinder by facsimile or in electronic (i.e., “pdf” or “tif”) format shall be effective as delivery of a manually executed counterpart of this
Joinder. 

	 	b.	This Joinder expresses the entire understanding of the parties with respect to the transactions contemplated hereby. No prior negotiations or discussions shall
limit, modify, or otherwise affect the provisions hereof. 

  

	 	c.	Any determination that any provision of this Joinder or any application hereof is invalid, illegal or unenforceable in any respect and in any instance shall not
effect the validity, legality, or enforceability of such provision in any other instance, or the validity, legality or enforceability of any other provisions of this Joinder. 

 

	 	d.	The New Line of Credit Lender confirms that it has consulted with independent legal counsel of its selection in connection with this Joinder and is not relying on
any representations or warranties of the Agent or the Lenders or their counsel in entering into this Joinder. 

  

	 	e.	THIS JOINDER SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES THEREOF BUT
INCLUDING SECTION 5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW. 

[SIGNATURE PAGES FOLLOW] 

 IN WITNESS WHEREOF, each of the
undersigned has caused this Joinder to be duly executed and delivered by its proper and duly authorized officer as of the date first set forth above. 
  

			
	[NEW LINE OF CREDIT LENDER],
	as Line of Credit Lender
		
	By:	 	                             
                                         
          
	Name: 
	Title: 

 [INSERT ADDRESS] 

 
	
	HOLDINGS:
	
	SEARS HOLDINGS CORPORATION
	
	By:                   
                                         
                 
	Name: 
	Title: 
	
	BORROWERS:
	
	KMART CORPORATION
	
	By:                   
                                         
                 
	Name: 
	Title: 
	
	SEARS ROEBUCK ACCEPTANCE CORPORATION
	
	By:                   
                                         
                 
	Name: 
	Title: 

 EXHIBIT L 

FORM OF LINE OF CREDIT LOAN PROPOSAL 

LINE OF CREDIT LOAN PROPOSAL 

Date: [            ],
20[    ] 
 To: [    ], as [potential][existing] Line of
Credit Lender 
 Ladies and Gentlemen: 

Reference is made to that certain Second Lien Credit Agreement, dated as of
September 1, 2016, as amended by that certain First Amendment to Second Lien Credit Agreement, dated as of July [__], 2017 (as such may have been further amended, modified, supplemented or restated, the “Credit Agreement”), by and
among, among others, Sears Holdings Corporation, a Delaware corporation, Sears Roebuck Acceptance Corp., a Delaware corporation (“SRAC”), and Kmart Corporation, a Michigan corporation (“Kmart”), the lenders from time to time
party thereto and JPP, LLC, a Delaware limited liability company, as administrative agent and collateral administrator thereunder. Capitalized terms used but not defined herein shall have the meanings set forth in the Credit Agreement. 

In accordance with Section 2.02 of the Credit Agreement, [Kmart][SRAC]18 hereby requests a Line of Credit Loan as follows: 
  

	 	1.	On
                                         
    (a Business Day).19 

  

	 	2.	In an aggregate principal amount of
$            .20 

  

	 	3.	With a maturity of             , 20[    ].21 

  

	 	4.	With a [fixed interest rate of     % per annum][floating interest rate equal to a Eurodollar Rate of     % per annum, plus
a margin of     % per annum]. 

  

	18 	Identify Borrower proposing the Line of Credit Loan herein. 

	19 	Each Line of Credit Loan Proposal (other than any Line of Credit Loan to be made on the First Amendment
Effective Date) must be delivered to the existing or prospective Line of Credit Lender at least one Business Day prior to the date of on which the proposed Line of Credit Loan is proposed to be made. 

	20 	Each Line of Credit Loan shall be in a principal amount of $10,000,000 or a whole multiple of $5,000,000 in
excess thereof.  

	21 	Not to exceed 179 days from the date on which any Line of Credit Loan is made. 

	 	5.	Such interest shall be payable in arrears [on the Line of Credit Loan Maturity Date][each month that such Line of Credit Loan remains outstanding][each third month
that such Line of Credit Loan remains outstanding]22. 

  

	 	6.	[Such interest shall be in the form of original issuance discount in an amount equal to             %
of the amount of the proposed Line of Credit Loan.]23 

  

	 	7.	The proposed Line of Credit Loan is to be [funded in cash in an amount equal to $            ][set off
against the Line of Credit Loan made by such Line of Credit Lender to [Kmart][SRAC] pursuant to that certain Line of Credit Loan Proposal, dated as of             ,
20[    ]]24. 

[Kmart][SRAC]25 hereby represents
and warrants as follows: 
  

	 	•	The representations and warranties made by each Loan Party in or pursuant to the Loan Documents are true and correct on and as of the date of the Line of Credit
Loan requested herein in all material respects, before and after giving effect to such Line of Credit Loan and to the application of the proceeds therefrom, as though made on and as of such date, except to the extent that (A) such
representations or warranties are qualified by a materiality standard, in which case they are true and correct in all respects, (B) such representations or warranties expressly relate to an earlier date (in which case such representations and
warranties are true and correct in all material respects as of such earlier date), and (C) such representations relate to Section 5.01(f) of the Credit Agreement, in which case the representation is limited to clause (c) of the
definition of “Material Adverse Effect”; 

  

	 	•	No event has occurred and is continuing, or would result from the Line of Credit Loan requested herein or from the application of the proceeds therefrom, that
constitutes a Default or an Event of Default; and 

  

	 	•	The incurrence of the proposed Line of Credit Loan will not conflict with, constitute a default under or violate any of the terms, conditions or provisions of
(i) the Indenture for the Existing Second Lien Notes, (ii) the Security Agreement, (iii) the Existing Intercreditor Agreement, (iv) the First Lien Credit Agreement, (v) the Letter of Credit Reimbursement Agreement, dated as
of December 28, 2016, by and among Holdings, the Borrowers, certain financial institutions and Citibank, 

  

	22 	Election to have interest payable monthly or quarterly available only for Line of Credit Loans with a Line of
Credit Loan Maturity Date that is more than 30 days from the Line of Credit Loan Date. 

	23 	Election for Fixed Rate Line of Credit Loans only. 

	24 	May set off the proceeds from any Line of Credit Loan against the amount of any Line of Credit Loan obligation
of the Borrowers to the applicable Line of Credit Lender with a Line of Credit Loan Maturity Date equal to the proposed Line of Credit Loan Date. 

	25 	
Identify Borrower requesting the
Line of Credit Loan herein. 

	 	
N.A. as administrative agent and issuing bank, as amended, modified,
supplemented or restated and in effect from time to time, (vi) that certain Loan Agreement, dated as of January 3, 2017, by and among JPP, LLC, JPP II, LLC, the Borrowers and the other borrower parties thereto, as amended, modified,
supplemented or restated and in effect from time to time, and (vii) that certain Receivables and Participation Purchase Agreement, dated as of June 15, 2017, by and among JPP, LLC, JPP II, LLC, Holdings, Kmart Operations LLC and Sears
Operations LLC, as amended, modified, supplemented or restated and in effect from time to time. 

  

	 	•	After giving effect to the proposed Line of Credit Loan requested herein, (A) the sum of the Total Extensions of Credit will not exceed the Borrowing Base,
and (B) no Collateral Coverage Event (as defined in the Indenture for the Existing Second Lien Notes) shall result therefrom. 

  

	 	•	Set forth below are the Borrowing Base and the Total Extensions of Credit as of [    ], in each case after giving effect to the proposed Line
of Credit Loan                     . 

Borrowing Base:
                                         
    
 Total Extensions of Credit:
                             

[Remainder of page intentionally blank] 

 
	
	Very truly yours,
	
	[KMART CORPORATION][SEARS ROEBUCK ACCEPTANCE CORPORATION], as a Borrower
	
	By:
	Name:
	Title:

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