EX-10.1 3 d337523dex101.htm FORM OF SEPARATION AGREEMENT Form of Separation Agreement

Exhibit 10.1

FORM OF

SEPARATION AGREEMENT

by and between

SEARS HOLDINGS CORPORATION

and

SEARS HOMETOWN AND OUTLET STORES, INC.

Dated as of August 8, 2012


TABLE OF CONTENTS

 

         Page  
ARTICLE I   
DEFINITIONS AND INTERPRETATION   

Section 1.1

  Certain Defined Terms      1   
ARTICLE II   
THE BUSINESS SEPARATION   

Section 2.1

  Business Separation      16   
ARTICLE III   
DISTRIBUTION OF THE RIGHTS   

Section 3.1

  Distribution of Rights      18   
ARTICLE IV   
CLOSING OF RIGHTS OFFERING   

Section 4.1

  Rights Closing      18   

Section 4.2

  Intercompany Agreements.      18   

Section 4.3

  Resignation      19   
ARTICLE V   
GENERAL PROVISONS   

Section 5.1

  Implementation Documents      19   

Section 5.2

  Unreleased Liabilities      19   

Section 5.3

  Deferred Transfers.      20   

Section 5.4

  Transfers of Assets or Liabilities Following the Business Separation      21   

Section 5.5

  Corporate Names; Trademarks      22   

Section 5.6

  Certain Matters Governed Exclusively by Ancillary Agreements.      22   

Section 5.7

  Disclaimer of Representations and Warranties.      22   

 

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ARTICLE VI   
CONFIDENTIALITY; EXCHANGE OF INFORMATION   

Section 6.1

  Agreement for Exchange of Information; Archives.      23   

Section 6.2

  Ownership of Information      24   

Section 6.3

  Record Retention.      25   

Section 6.4

  Production of Witnesses; Records; Cooperation.      25   

Section 6.5

  Confidential Information.      26   

Section 6.6

  Protective Arrangement      27   

Section 6.7

  Other Agreements Providing for Exchange of Information      27   

Section 6.8

  Privileged Matters      28   
ARTICLE VII   
FINANCIAL AND OTHER INFORMATION   

Section 7.1

  Financial and Other Information.      30   

Section 7.2

  Sarbanes-Oxley Section 404 Compliance      33   
ARTICLE VIII   
INSURANCE   

Section 8.1

  Insurance Matters.      33   

Section 8.2

  Miscellaneous.      35   
ARTICLE IX   
LEGAL MATTERS   

Section 9.1

  Control of Legal Matters.      35   

Section 9.2

  Notice to Third Parties; Service of Process; Cooperation.      36   
ARTICLE X   
INDEMNIFICATION   

Section 10.1

  Release of Pre-Separation Claims.      37   

Section 10.2

  Indemnification by SHO      39   

Section 10.3

  Indemnification by SHLD      40   

Section 10.4

  Indemnification with respect to Unreleased Liabilities      40   

Section 10.5

  Adjustments to Indemnification Obligations.      41   

Section 10.6

  Contribution      42   

 

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Section 10.7

  Procedures for Indemnification of Direct Claims      42   

Section 10.8

  Procedures for Indemnification of Third Party Claims.      43   

Section 10.9

  Remedies Cumulative      44   

Section 10.10

  Survival of Indemnities      44   

ARTICLE XI

  

 

DISPUTE RESOLUTION

  

Section 11.1

  Disputes      44   

Section 11.2

  Dispute Resolution.      45   

Section 11.3

  Mediation of Unresolved Disputes      45   

Section 11.4

  Continuity of Service and Performance      45   
ARTICLE XII   
FURTHER ASSURANCES   

Section 12.1

  Further Assurances.      46   
ARTICLE XIII   
Amendment and TERMINATION   

Section 13.1

  Sole Discretion of SHLD      46   

Section 13.2

  Amendment and Termination      47   
ARTICLE XIV   
MISCELLANEOUS   

Section 14.1

  Limitation of Liability.      47   

Section 14.2

  Expenses      48   

Section 14.3

  Counterparts      48   

Section 14.4

  Notices      48   

Section 14.5

  Public Announcements      48   

Section 14.6

  Severability      49   

Section 14.7

  Entire Agreement      49   

Section 14.8

  Assignment      49   

Section 14.9

  Third-Party Beneficiaries      49   

Section 14.10

  Governing Law; Jurisdiction.      50   

Section 14.11

  Waiver of Jury Trial      50   

Section 14.12

  Headings      51   

Section 14.13

  Interpretation      51   

 

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Section 14.14

  Specific Performance      51   

Section 14.15

  Payment Terms.      51   

Section 14.16

  Survival of Covenants      52   

Section 14.17

  Waiver      52   

Section 14.18

  Condition Precedent to the Effectiveness of this Agreement      52   

Section 14.19

  Counterparts; Facsimile Signatures      52   

Schedule 1.1(a)

          Hometown Locations   

Schedule 1.1(b)

          Outlet Stores Locations   

Schedule 1.1(c)

          PR Dealer Locations   

Schedule 1.1(d)

          PR Outlet Locations   

Schedule 1.1(e)

          Certain Real Estate   

 

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SEPARATION AGREEMENT

This SEPARATION AGREEMENT, is made as of August 8, 2012, by and between Sears Holdings Corporation, a Delaware corporation (“SHLD”), and Sears Hometown and Outlet Stores, Inc., a Delaware corporation (“SHO”).

WHEREAS, SHLD, through certain of its Subsidiaries, is currently engaged in the SHO Business;

WHEREAS, the board of directors of SHLD has determined that it is in the best interests of SHLD and its stockholders to create a new publicly traded company that shall operate the SHO Business;

WHEREAS, in furtherance of the foregoing, the board of directors of SHLD has determined that it is in the best interests of SHLD and its stockholders;

(i) for SHLD and certain of its Subsidiaries to enter into a series of transactions in the manner provided in this Agreement and the Ancillary Agreements whereby (x) SHLD will, directly or indirectly through its Subsidiaries, own all of the SHLD Assets and assume (or retain) all of the SHLD Liabilities, and (y) SHO will, directly or indirectly through its Subsidiaries, own all of the SHO Assets and assume (or retain) all of the SHO Liabilities; and

(ii) for SHLD to (x) distribute subscription rights (the “Rights”) to purchase from SHLD shares of common stock of SHO, par value $0.01 per share (“SHO Common Stock”) and (y) sell shares of SHO Common Stock pursuant to the Rights, in each case as described in the SHO Registration Statement (collectively, the “Rights Offering”).

NOW, THEREFORE, in consideration of the foregoing and the mutual covenants and agreements herein contained, and intending to be legally bound hereby, SHLD and SHO hereby agree as follows:

ARTICLE I

DEFINITIONS AND INTERPRETATION

Section 1.1 Certain Defined Terms. For purposes of this Agreement:

Action” means any demand, claim, counterclaim, action, suit, arbitration, inquiry, proceeding or investigation, in each case brought by or pending before any Governmental Authority or any federal, state, local, foreign or international arbitration or mediation tribunal.

Affiliate” means, with respect to any specified Person, any other Person that directly, or indirectly through one or more intermediaries, controls, is controlled by, or is


under common control with, such specified Person; provided, however, that except where the context indicates otherwise, for purposes of this Agreement, (i) no member of the SHLD Group shall be deemed to be an Affiliate of any member of the SHO Group, and (ii) no member of the SHO Group shall be deemed to be an Affiliate of any member of the SHLD Group.

Agreement” means this Separation Agreement.

Ancillary Agreements” means

(i) the Tax Sharing Agreement;

(ii) the Employee Transition and Administrative Services Agreement;

(iii) the License Agreements;

(iv) the Services Agreement;

(v) the Real Estate Agreements;

(vi) the Merchandising Agreement; and

(vii) the Retail Establishment Agreement.

Assets” means, with respect to any Person, the assets, properties and rights (including, goodwill) of such Person, wherever located (including in the possession of vendors or other Persons or elsewhere), whether tangible or intangible, real, personal or mixed, or accrued or contingent, in each case whether or not recorded or reflected or required to be recorded or reflected on the books and records or financial statements of such Person, including, the following:

(i) all accounting and other Records, whether in paper, microfilm, microfiche, computer tape or disk, magnetic tape or any other form;

(ii) all apparatus, computers and other electronic data processing equipment, fixtures, machinery, equipment, furniture, office equipment, automobiles, trucks, motor vehicles and other transportation equipment, special and general tools, test devices, prototypes and models and other tangible personal property;

(iii) all inventories of materials, parts, supplies, work-in-process and finished goods and products;

(iv) all Real Property Assets;

 

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(v) all interests in any capital stock or other equity interests of any Subsidiary or any other Person, all bonds, notes, debentures or other securities issued by any Subsidiary or any other Person, all loans, advances or other extensions of credit or capital contributions to any Subsidiary or any other Person and all other investments in securities of any Person, and all rights as a partner, joint venturer or participant;

(vi) all licenses and leases of personal property, open purchase orders for raw materials, supplies, parts or services, unfilled orders for the manufacture and sale of products and other contracts, agreements or commitments and all rights arising thereunder;

(vii) all deposits, letters of credit and performance and surety bonds;

(viii) all written technical information, data, specifications, research and development information, engineering drawings, operating and maintenance manuals, and materials and analyses prepared by consultants and other third parties;

(ix) all Intellectual Property Assets;

(x) Software;

(xi) all Information;

(xii) all prepaid expenses, trade accounts and other accounts and notes receivables;

(xiii) all rights under Contracts, all claims or rights against any Person, choses in action or similar rights, whether accrued or contingent, whether in tort, contract or otherwise and whether arising by way of counterclaim or otherwise;

(xiv) subject to Section 8.1(b), all rights under insurance policies and all rights in the nature of insurance, indemnification or contribution;

(xv) all licenses, permits, approvals and authorizations which have been issued by any Governmental Authority and all pending applications therefor;

(xvi) all cash or cash equivalents, bank accounts, lock boxes and other deposit arrangements; and

(xvii) all interest rate, currency, commodity or other swap, collar, cap or other hedging or similar agreements or arrangements; and

(xviii) all goodwill as a going concern and other intangible properties.

Assets Contribution” has the meaning set forth in Section 2.1(a).

 

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Business” means either the SHO Business or the SHLD Business, as the context requires.

Business Day” means any day that is not a Saturday, a Sunday or any other day on which banks are required or authorized by Law to be closed in The City of New York.

Business Separation” has the meaning set forth in Section 2.1.

Confidential Information” has the meaning set forth in Section 6.5(a).

Consents” means any consents, waivers or approvals from, or notification requirements to, any Person other than a Governmental Authority or a member of either Group.

Contract” means each contract, agreement, lease, commitment, license, consensual obligation, promise or undertaking (whether written or oral and whether express or implied) that is legally binding on any Person or any part of its property under applicable Law, including all claims or rights against any Person, choses in action and similar rights, whether accrued or contingent with respect to any such contract, agreement, lease, purchase and/or commitment, license, consensual obligation, promise or undertaking.

Control” (including the terms “controlled by” and “under common control with”), with respect to the relationship between or among two or more Persons, means the possession, directly or indirectly or as trustee, personal representative or executor, of the power to direct or cause the direction of the affairs or management of a Person, whether through the ownership of voting securities, as trustee, personal representative or executor, by contract or credit arrangement or otherwise.

Customer Information” means with respect to any business, all information relating to customers of such business, including, names, addresses and transaction data (including merchandise or service purchased; purchase price paid, purchase location (such as particular store or online), date and time of day of purchase, associated returns, exchanges, adjustments, and related information; and means of payment).

Deferred Transfer Asset” has the meaning set forth in Section 5.3(a).

Deferred Transfer Liability” has the meaning set forth in Section 5.3(a).

Dispute” has the meaning set forth in Section 11.1.

Dispute Meeting” has the meaning set forth in Section 11.2(b).

 

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Employee Transition and Administrative Services Agreement” means the Employee Transition and Administrative Services Agreement, dated August 8, 2012, by and between SHLD and SHO.

Encumbrance” means any security interest, pledge, hypothecation, mortgage, lien or encumbrance, whether or not filed, recorded or otherwise perfected under applicable Law.

Exchange Act” means the Securities Exchange Act of 1934, as amended, together with the rules and regulations promulgated thereunder.

Executive Committee” has the meaning set forth in Section 11.2(a).

Excluded Assets” means (i) Real Property Assets and (ii) Pre-Separation Litigation Assets.

Governmental Approvals” means any notices or reports to be submitted to, or other filings to be made with, or any consents, registrations, approvals, permits or authorizations to be obtained from, any Governmental Authority.

Governmental Authority” means any U.S. or non-U.S. federal, national, supranational, state, provincial, local or other government, governmental, regulatory or administrative authority, agency or commission or any court, tribunal or judicial or arbitral body.

Group” means the SHLD Group or the SHO Group, as the context requires.

Historic SHO Balance Sheet” means the audited combined balance sheet of the Sears Hometown and Hardware and Sears Outlet Businesses of Sears Holdings, including the notes thereto, as of January 28, 2012, included in the SHO Registration Statement.

Hometown Assumed Liabilities” means any and all Liabilities of SRC as and to the extent relating to, arising out of, or resulting from the Hometown Transferred Assets or the Hometown Businesses.

Hometown Business” means the businesses and operations of selling merchandise and services at retail through stores at the locations set forth on Schedule 1.1(a), including the businesses and operations of the Sears Hometown and Hardware Segment described in the SHO Registration Statement.

Hometown Transferred Assets” means the following Assets of SRC (other than Excluded Assets):

 

  (i) all tangible personal property used in the Hometown Business located at the locations set forth in Schedule 1.1(a);

 

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(ii) all Intellectual Property Assets used solely by SAHS within the last twelve (12) months in connection with the Hometown Business;

(iii) a joint ownership interest (with SRC) in all Customer Information of the Hometown Business, other than Transaction Information (as defined in the Retail Establishment Agreement);

(iv) all Contracts necessary to operate and manage the Hometown Business and used primarily by SAHS in the operation of the Hometown Business;

(v) all Records relating primarily to the Hometown Business; and

(vi) all other Assets (i) reflected on the Historic SHO Balance Sheet, or (ii) if acquired by SRC after the date of the Historic SHO Balance Sheet, would have been reflected on the combined balance sheet of the “Company” (as such term is used in the Historic SHO Balance Sheet) if such balance sheet were prepared as of the time of the Assets Contribution using the same principles and accounting policies under which the Historic SHO Balance Sheet was prepared, to the extent used primarily by SAHS in the operation of the Hometown Business.

Implementation Documents” has the meaning set forth in Section 5.1.

Indemnified Party” has the meaning set forth in Section 10.5(a).

Indemnifying Party” has the meaning set forth in Section 10.5(a).

Indemnity Payment” has the meaning set forth in Section 10.5(a).

Information” means information, whether or not patentable or copyrightable, in written, oral, electronic or other tangible or intangible forms, stored in any medium, including, studies, reports, records, books, contracts, instruments, surveys, discoveries, ideas, concepts, know-how, techniques, designs, specifications, drawings, blueprints, artwork, design, research and development files, diagrams, models, prototypes, samples, flow charts, data, computer data, disks, diskettes, tapes, computer programs or other software, marketing plans, Customer Information, cost information, sales and pricing data, customer prospect lists, supplier records and vendor data, correspondence and lists, product literature, communications by or to attorneys (including attorney-client privileged communications), memoranda and other materials prepared by attorneys or under their direction (including attorney work product), and other technical, financial, employee or business information or data.

Insurance Proceeds” means those monies (i) received by an insured or reinsured from an insurer or reinsurer, (ii) paid by an insurer or reinsurer on behalf of the insured or reinsured or (iii) received (including by way of set-off) from any Third Party in the nature

 

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of insurance, contribution or indemnification in respect of any Liability; in any such case net of any applicable premium adjustments (including, retrospectively rated premium adjustments) and net of any self-insured retention, deductible or other form of self-insurance and net of any third party costs or expenses incurred in the collection thereof.

Intellectual Property” means all right, title and interest in or relating to intellectual property or industrial property, whether arising under the Law of the United States or any other country or any political subdivision thereof or multinational Laws or any other Law, including, (i) patents, patent applications, and all divisionals, continuations and continuations-in-part thereof, together with all reissues, reexaminations, renewals and extensions thereof and all rights to obtain such divisionals, continuations and continuations-in-part, reissues, reexaminations, renewals and extensions, and all utility models and statutory invention registrations, (ii) trademarks, service marks, Internet domain names, trade dress, trade styles, logos, trade names, services names, brand names, corporate names, assumed business names and general intangibles and other source identifiers of a like nature, together with the goodwill associated with any of the foregoing, and all registrations and applications for registrations thereof, together with all renewals and extensions thereof and all rights to obtain such renewals and extensions, (iii) copyrights, mask work rights, database and design rights, moral rights and rights in Internet websites, whether registered or unregistered and whether published or unpublished, all registrations and recordings thereof and all applications in connection therewith, together with all renewals, continuations, reversions and extensions thereof and all rights to obtain such renewals, continuations, reversions and extensions and (iv) confidential and proprietary information, including, trade secrets and know-how.

Intellectual Property Assets” means all Intellectual Property (together with all goodwill associated therewith and the right to sue and recover at law or in equity for past, present and future infringement, misappropriation, dilution, violation or other impairment of such Intellectual Property) and all license agreements (including, licenses from or to third parties in respect of Intellectual Property).

Intercompany Accounts” means all accounts receivable and accounts payable between one or more members of the SHO Group, on the one hand, and one or more members of the SHLD Group, on the other hand.

Intercompany Agreements” means the Ancillary Agreements and the other agreements, arrangements, commitments or understandings, whether or not in writing, between one or more members of the SHO Group, on the one hand, and one or more members of the SHLD Group, on the other hand.

Internal Control Audit and Management Assessments” has the meaning set forth in Section 7.2.

 

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Joint Litigation Matters” means any and all Actions in respect of any Shared Transaction Liability.

Law” means any U.S. or non-U.S. federal, national, supranational, state, provincial, local or similar statute, law, ordinance, regulation, rule, code, order, license, permit, authorization, approval, consent, decree, injunction, binding judicial or administrative interpretation or other requirement (including, common law), in each case, enacted, promulgated, issued or entered by a Governmental Authority.

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

License Agreements” means (i) the Store License Agreement, by and between SRC and SAHS, (ii) the Store License Agreement, by and between SRC and Outlet Stores, (iii) the Store License Agreement, by and between SRC and Sears Home Appliance Showrooms, LLC and (iv) the Trademark License Agreement, by and between SRC and SHO, in each case, dated August 8, 2012.

LLC Distribution” has the meaning set forth in Section 2.1(d)

Marks” has the meaning set forth in Section 5.5.

Merchandising Agreement” means the Merchandising Agreement, dated August 8, 2012, by and between SRC, Kmart Corporation, SHLD, on the one hand, and SHO and the Transferred Entities, on the other hand.

Outlet Assumed Liabilities” means all Liabilities of SRC as and to the extent relating to, arising out of, or resulting from the Outlet Transferred Assets or the Outlet Businesses.

 

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Outlet Business” means the businesses and operations of selling overstock and/or distressed merchandise at a discount at the locations set forth on Schedule 1.1(b), including the businesses and operations of the Sears Outlet Segment described in the SHO Registration Statement.

Outlet Stores” means Sears Outlet Stores, L.L.C.

Outlet Transferred Assets” means the following Assets of SRC (other than Excluded Assets):

 

  (i) all tangible personal property used in the Outlet Business located at the locations set forth in Schedule 1.1(b);

(ii) all Intellectual Property Assets used solely by Outlet Stores within the last twelve (12) months in connection with the Outlet Business;

(iii) a joint ownership interest (with SRC) in all Customer Information of the Outlet Business, other than Transaction Information (as defined in the Retail Establishment Agreement);

(iv) all Contracts necessary to operate and manage the Outlet Business and used primarily by Outlet Stores in the operation of the Outlet Business;

(v) all Records relating primarily to the Outlet Business;

(vi) all of the membership interest in Troy Coolidge No. 6, LLC, a Michigan limited liability company; and

(vii) to the extent not included as Hometown Transferred Assets, all other Assets (i) reflected on the Historic SHO Balance Sheet, or (ii) if acquired by SRC after the date of the Historic SHO Balance Sheet, would have been reflected on the combined balance sheet of the Company (as such term is used in the Historic SHO Balance Sheet) if such balance sheet were prepared as of the time of the Assets Contribution using the same principles and accounting policies under which the Historic SHO Balance Sheet was prepared.

Person” means any individual, partnership, firm, corporation, limited liability company, association, trust, joint venture, unincorporated organization, other entity or Governmental Authority, as well as any syndicate or group that would be deemed to be a person under Section 13(d)(3) of the Exchange Act.

PR Dealer Liabilities” means all Liabilities of SPR as and to the extent relating to, arising out of, or resulting from the PR Dealer Assets or the PR Dealer Businesses, including trade payables and accrued expenses of SPR incurred in the ordinary course of the PR Dealer Business.

 

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PR Outlet Liabilities” means all Liabilities of SPR as and to the extent relating to, arising out of, or resulting from the PR Outlet Assets or the PR Outlet Businesses, including trade payables and accrued expenses of SPR incurred in the ordinary course of the PR Outlet Business.

PR Dealer Assets” means the following Assets of SPR (other than the Excluded Assets):

 

  (i) all trade accounts receivables, notes receivables, negotiable instruments and chattel paper attributable to the PR Dealer Business;

 

  (ii) all tangible personal property used in the PR Dealer Business located at the locations set forth in Schedule 1.1(c);

 

  (iii) all Intellectual Property Assets used solely by the PR Dealer Business within the last twelve (12) months in connection with the PR Dealer Business;

 

  (iv) a joint ownership interest (with SRC) in all Customer Information of the PR Dealer Business, other than Transaction Information (as defined in the Retail Establishment Agreement);

 

  (v) all Contracts necessary to operate and manage the PR Dealer Business and used primarily in the operation of the PR Dealer Business;

 

  (vi) all Records relating primarily to the PR Dealer Business; and

 

  (vii) all other Assets used primarily by the PR Dealer Business.

PR Dealer Business” means the business of selling merchandise and services at retail through stores at the locations set forth on Schedule 1.1(c).

PR Outlet Assets” means the following Assets of SPR (other than the Excluded Assets):

 

  (i) all trade accounts receivables, notes receivables, negotiable instruments and chattel paper attributable to the PR Outlet Business;

 

  (ii) all tangible personal property used in the PR Outlet Business located at the locations set forth in Schedule 1.1(d);

 

  (iii) all Intellectual Property Assets used solely by the PR Outlet Business within the last twelve (12) months in connection with the PR Outlet Business;

 

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  (iv) a joint ownership interest (with SRC) in all Customer Information of the PR Outlet Business, other than Transaction Information (as defined in the Retail Establishment Agreement);

 

  (v) all Contracts necessary to operate and manage the PR Outlet Business and used primarily in the operation of the PR Outlet Business;

 

  (vi) all Records relating primarily to the PR Outlet Business; and

 

  (vii) all other Assets used primarily by the PR Outlet Business.

PR Outlet Business” means the business of selling distressed, refurbished and marked-out-of-stock merchandise at retail through stores at the locations set forth on Schedule 1.1(d).

Pre-Separation Litigation Assets” means any and all Assets with respect to, arising out of, or resulting from the Pre-Separation Litigation Matters, including, any and all rights to damage awards, settlement payments, reimbursements or indemnities.

Pre-Separation Litigation Matters” means any and all (i) Actions in which any member of the SHLD Group or the SHO Group is a defendant, plaintiff or member of a class of plaintiffs that have been commenced on or before the Rights Closing Effective Time and (ii) Actions in which any member of the SHLD Group is a plaintiff that are filed after the Rights Closing Effective Time and relate to the subject matter of an Action in which any member of the SHLD Group or the SHO Group is a plaintiff or member of a class of plaintiffs that has been commenced on or prior to the Rights Closing Effective Time (for example, an Action commenced by any member for the SHLD Group after such member has opted out of a class action and determined to prosecute a claim outside of the class).

Public Filings” has the meaning set forth in Section 7.1(c).

Real Property Assets” means all interests in real property of whatever nature, including, easements, whether as owner, mortgagee or holder of an Encumbrance in real property, lessor, sublessor, lessee, sublessee, licensor, licensee, sublicensor, sublicensee or otherwise.

Real Estate Agreements” means the deeds, leases, subleases, assignments of leases, license agreements, and other agreements and instruments in which a member of the SHLD Group conveys to a member of the SHO Group ownership of, or a leasehold or other interest in, real property owned or leased by a member of the SHLD Group and set forth in Schedule 1.1(e).

 

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Records” means documents, files and other books and records, including, books and records relating to financial reporting, internal audit, employee benefits, past acquisition or disposition transactions, Actions, and email files and backup tapes regarding any of the foregoing.

Representatives” means directors, officers, employees, agents, consultants, accountants, attorneys and any other advisors, including, representatives of the foregoing.

Resolution Failure Date” has the meaning set forth in Section 11.2(b).

Retail Establishment Agreement” means the Shop Your Way Rewards Retail Establishment Agreement, dated August 8, 2012, by and between Sears Holdings Management Corporation and SHO.

Rights” has the meaning set forth in the Recitals.

Rights Closing Date” has the meaning set forth in Section 4.1.

Rights Closing Effective Time” means, 5:00 P.M., New York City Time, on the Rights Closing Date.

Rights Distribution Date” has the meaning set forth in Section 3.1.

Rights Offering” has the meaning set forth in the Recitals.

SAHS” means Sears Authorized Hometown Stores, LLC, a Delaware Limited Liability Company.

SEC” means the Securities and Exchange Commission.

Securities Act” means the Securities Act of 1933, as amended, together with the rules and regulations promulgated thereunder.

Services Agreement” means the Services Agreement by and between Sears Holdings Management Corporation and SHO, dated August 8, 2012.

Shared Privileges” has the meaning set forth in Section 6.8(d).

Shared Transaction Liabilities” means any and all Liabilities arising from, relating to, or derivative of any Action, whether commenced prior to, on or subsequent to the Rights Closing Effective Time, with respect to the Business Separation and the Rights Offering made or brought by any Person against SHLD, SHO or any member of their respective Groups, including, any and all Liabilities under applicable Laws (including, federal and state securities Laws) arising from, relating to, or derivative of any Action relating to any public disclosure (or absence of public disclosure) at or prior to the Rights Closing Effective Time by SHLD, SHO or any member of their respective Groups in connection the Business Separation and the Rights Offering.

 

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SHLD” has the meaning set forth in the Preamble.

SHLD Assets” means, without duplication, any and all Assets owned by members of the SHLD Group after giving effect to the Ancillary Agreements and the transactions contemplated by Section 2.1 and for the avoidance of doubt, excluding any SHO Assets.

SHLD Assumed Liabilities” means, without duplication,

 

  (i) any and all Liabilities of members of the SHO Group as and to the extent relating to, arising out of, or resulting from (A) the SHLD Business or (B) any SHLD Assets and any former Assets of any member of the SHLD Group or any of its predecessors (other than Shared Transaction Liabilities and Liabilities expressly allocated to the SHO Group pursuant to the Ancillary Agreements);

 

  (ii) any and all Liabilities arising out of the Pre-Separation Litigation Matters, other than Shared Transaction Liabilities and SHO Retained Wage Law Liabilities;

 

  (iii) SHLD Assumed Wage Law Liabilities; and

 

  (iv) 50% of any and all Shared Transaction Liabilities.

SHLD Assumed Wage Law Liabilities” means any and all Liabilities, directly or indirectly arising out of, relating to or based upon all Wage Law Actions, to the extent such Wage Law Actions commenced on or prior to the Rights Closing Effective Time and only to the extent such Liabilities are attributable to facts and circumstances occurring prior to the Rights Closing Effective Time; provided that for the avoidance of doubt, SHLD Assumed Wage Law Liabilities shall not include any Liabilities attributable to the conduct of the SHO Business (including its wage and hour practices, classifications and policies) from and after the Rights Closing Effective Time, which Liabilities shall be SHO Retained Wage Law Liabilities.

SHLD Business” means (A) the businesses and operations of the SHLD Group and (B) any terminated, divested or discontinued businesses and operations of any member of the SHLD Group or any of its predecessors; provided, however, that the SHLD Business shall not include the SHO Business.

SHLD Group” means, collectively, SHLD and all of its Subsidiaries other than members of the SHO Group.

SHLD Indemnified Party” has the meaning set forth in Section 10.2.

 

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SHLD Liabilities” means, without duplication, all and all Liabilities of members of the SHLD Group after giving effect to the Ancillary Agreements and the transactions contemplated by Section 2.1, and for the avoidance of doubt, including the SHLD Assumed Liabilities and excluding any SHO Liabilities.

SHLD Litigation Matters” means (i) any and all Actions that are primarily related to the SHLD Assets, the SHLD Liabilities or the SHLD Business and (ii) any and all Pre-Separation Litigation Matters.

SHO” has the meaning set forth in the Preamble.

SHO Annual Report” has the meaning set forth in Section 7.1(b).

SHO Assets” means, without duplication, all of the right, title and interest in and to any and all Assets owned by members of the SHO Group after giving effect to the Ancillary Agreements and the transactions contemplated by Section 2.1, and for the avoidance of doubt, including (i) all issued and outstanding equity interests in all members of the SHO Group other than SHO, (ii) the Hometown Transferred Assets, (iii) the Outlet Transferred Assets, (iv) the PR Dealer Assets and (v) the PR Outlet Assets, but excluding any Pre-Separation Litigation Assets.

SHO Assumed Liabilities” means, without duplication,

(i) any and all Liabilities of members of the SHLD Group as and to the extent relating to, arising out of, or resulting from (A) the SHO Business, or (B) any SHO Assets and any former Assets of any member of the SHO Group or any of its predecessors (other than Shared Transaction Liabilities, SHLD Assumed Wage Law Liabilities and Liabilities expressly allocated to the SHLD Group pursuant to the Ancillary Agreements);

(ii) any and all SHO Retained Wage Law Liabilities; and

(iii) 50% of any and all Shared Transaction Liabilities.

SHO Business” means (A) the businesses and operations of the SHO Group, including the business of SHO as described in the SHO Registration Statement and (B) any terminated, divested or discontinued businesses and operations of any member of the SHO Group or any of its predecessors.

SHO Common Stock” has the meaning set forth in the Recitals.

SHO Contribution” has the meaning set forth in Section 2.1(e)(i).

SHO Group” means, collectively, SHO, the Transferred Entities and all other Persons that hereafter become a Subsidiary of SHO.

 

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SHO Indemnified Party” has the meaning set forth in Section 10.3.

SHO Liabilities” means, without duplication, any and all Liabilities of members of the SHO Group after giving effect to the Ancillary Agreements and the transactions contemplated by Section 2.1 and for the avoidance of doubt, including (i) the SHO Assumed Liabilities, (ii) the Hometown Assumed Liabilities, (iii) the Outlet Assumed Liabilities, (iv) the PR Dealer Liabilities and (v) the PR Outlet Liabilities, but excluding (i) the SHLD Assumed Liabilities and (ii) any Liabilities for which members of the SHO Group are entitled to indemnification from the SHLD Group pursuant to the Tax Sharing Agreement.

SHO Litigation Matters” means any and all Actions primarily related to the SHO Assets, the SHO Liabilities or the SHO Business, but excluding any Pre-Separation Litigation Matters.

SHO Quarterly Report” has the meaning set forth in Section 7.1(a).

SHO Registration Statement” means the registration statement on Form S-1 (Registration No. 333-181051), as amended, filed with the SEC, pursuant to which the Rights to be distributed and the SHO Common Stock to be offered and sold through the Rights Offering have been registered under the Securities Act.

SHO Retained Wage Law Liabilities” means any and all Liabilities, directly or indirectly arising out of, relating to or based upon all (i) Wage Law Actions, commenced after the Rights Closing Effective Time and (ii) any Liabilities described in the proviso in the definition of SHLD Assumed Wage Law Liabilities.

Software” means computer software, programs, databases and applications, whether in source code, object code or other form, including, operating software, network software, Internet websites, web content and links, all versions, updates, corrections, enhancements, replacements and modifications thereof, and all documentation related thereto.

SPR” means Sears, Roebuck de Puerto Rico, Inc., a Delaware corporation.

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

Subsidiaries” means any and all corporations, partnerships, limited liability companies, joint ventures, associations and other entities controlled by a Person directly or indirectly through one or more intermediaries.

Tax” or “Taxes” has the meaning set forth in the Tax Sharing Agreement.

 

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Tax Sharing Agreement” means the Tax Sharing Agreement by and between SHLD, on the one hand, and SHO and its subsidiaries, on the other hand, dated August 8, 2012.

Third Party” means any Person that is not a party hereto or an Affiliate of any party hereto.

Third Party Claim” has the meaning set forth in Section 10.8(a).

Third Party Proceeds” has the meaning set forth in Section 10.5(a).

Transfer Impediment” has the meaning set forth in Section 5.3(a).

Transferred Entity” means each of SAHS, Outlet Stores, and Sears Home Appliance Showrooms, LLC.

Unreleased Liability” has the meaning set forth in Section 5.2.

Unreleased Person” has the meaning set forth in Section 5.2.

Unresolved Disputes” has the meaning set forth in Section 11.2(b).

Wage Law Action” means any Action with respect to violations by the SHO Business of the Fair Labor Standards Act, any amendments thereto or any rules or regulations promulgated thereunder as each apply to the regulation of employee wages and hours, or any similar provisions of any federal, state, or local law.

ARTICLE II

THE BUSINESS SEPARATION

Section 2.1 Business Separation. On the terms and subject to the conditions set forth in this Agreement, prior to the effectiveness of SHO Registration Statement (but subject to Section 5.2 with respect to Unreleased Liabilities and Section 5.3 with respect to Deferred Transfer Assets and Deferred Transferred Liabilities), the transactions set forth in this Section 2.1 (collectively, the “Business Separation”) shall take place in the order provided below:

(a) US Assets Contribution and Liabilities Assumption.

(i) SRC shall convey, assign and transfer as a capital contribution by way of contribution to surplus (x) to SAHS, all of SRC’s right, title and interest in and to the Hometown Transferred Assets and cash in an amount equal to $3,399,206 and (y) to Outlet Stores, all of SRC’s right, title and interest in and to the Outlet Transferred Assets and cash in an amount equal to $ 340,820 (collectively, the “Assets Contribution”).

 

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(ii) (x) SAHS shall accept and assume all Hometown Assumed Liabilities and (y) Outlet Stores shall accept and assume all Outlet Assumed Liabilities.

(b) Puerto Rico Assets Transfer and Liabilities Assumption.

(i) SPR shall sell, and SAHS shall purchase, all of SPR’s right, title and interest in and to the PR Dealer Assets; and SAHS shall pay, or cause to be paid, to SPR, a purchase price in an amount equal to $3,399,206 and shall accept and assume all PR Dealer Liabilities.

(ii) SPR shall sell, and Outlet Stores shall purchase, all of SPR’s right, title and interest in and to the PR Outlet Assets; and Outlet Stores shall pay, or cause to be paid, to SPR, a purchase price in an amount equal to $340,820 and shall accept and assume all PR Outlet Liabilities.

(c) Distribution of Litigation Assets. Concurrently with the transactions set forth in Sections 2.1(a) and (b), each of the Transferred Entities shall distribute to SRC, all of such Transferred Entity’s right, title and interest, if any, in and to the Pre-Separation Litigation Assets.

(d) LLC Distribution. Immediately following the transactions set forth in Sections 2.1 (a), (b) and (c), SRC shall distribute to SHLD all of SRC’s right, title and interest in and to all the issued and outstanding equity interests of the Transferred Entities (the “LLC Distribution”).

(e) SHO Contribution.

(i) Immediately following the LLC Distribution, SHLD shall contribute all of its right, title and interest in and to all the issued and outstanding equity interests of the Transferred Entities to SHO (the “SHO Contribution”) by way of contribution to surplus.

(ii) Concurrently with the SHO Contribution, (x) SHLD shall accept and assume all the SHLD Assumed Liabilities and (y) SHO shall accept and assume all the SHO Assumed Liabilities.

Each Person required pursuant to this Section 2.1 to assume any Liability shall accept, assume, perform, discharge and fulfill such Liability in accordance with its terms, regardless of (i) when or where such Liabilities arose or arise, (ii) whether the facts upon which they are based occurred prior to, on or subsequent to the Rights Closing Effective

 

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Time, (iii) where or against whom such Liabilities are asserted or determined and (iv) whether arising from or alleged to arise from negligence, recklessness, violation of Law, fraud or misrepresentation by any member of the SHLD Group or the SHO Group, as the case may be, or any of their past or present respective directors, officers, employees, agents, Subsidiaries or Affiliates.

ARTICLE III

DISTRIBUTION OF THE RIGHTS

Section 3.1 Distribution of Rights. Following the Business Separation and subject to SHLD’s rights pursuant to Article XIII, SHLD may, in its sole and absolute discretion, distribute the Rights in the manner described in the SHO Registration Statement. The date on which the distribution of the Rights occurs shall be the “Rights Distribution Date.” Prior to such Rights distribution, SHLD may, in its sole and absolute discretion, as the sole shareholder of SHO, cause the certificate of incorporation of SHO to be amended, such that, upon the filing of such amended certificate with the Secretary of State of the State of Delaware, each share of the SHO Common Stock then issued and outstanding, shall be converted into that number of fully paid and non-assessable shares of SHO Common Stock issued and outstanding equal to such number as the board of directors of SHLD shall determine is required in order to complete the sale of SHO Common Stock as contemplated by the Rights Offering.

ARTICLE IV

CLOSING OF RIGHTS OFFERING

Section 4.1 Rights Closing. Subject to SHLD’s rights pursuant to Article XIII, the closing of the sale of SHO Common Stock pursuant to the Rights shall take place in the manner described in “The Rights Offering” section of the SHO Registration Statement. The date on which the closing of the sale of SHO Common Stock occurs shall be the “Rights Closing Date.”

Section 4.2 Intercompany Agreements.

(a) Except as set forth in Section 4.2(b), in furtherance of the releases and other provisions of Section 10.1, SHO, on behalf of itself and each other member of the SHO Group, on the one hand, and SHLD, on behalf of itself and each other member of the SHLD Group, on the other hand, shall terminate, effective as of the Rights Closing Effective Time, any and all Intercompany Agreements in effect as of the Rights Closing Date and shall settle, or cause to be settled, all Intercompany Accounts on or prior to the Rights Closing Effective Time. No such terminated Intercompany Agreements (including any provision thereof that purports to survive termination) shall be of any further force or effect after the Rights Closing Effective Time. Each party hereto shall, at the reasonable request of the other party hereto, take, or cause to be taken, such other actions as may be necessary to effect the foregoing.

 

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(b) The provisions of Section 4.2(a) shall not apply to any of the following Intercompany Agreements (or to any of the provisions thereof) or Intercompany Accounts: (i) this Agreement and the Ancillary Agreements (and each other Intercompany Agreement or Intercompany Account expressly contemplated hereby or thereby, including the Implementation Documents) and (ii) any outstanding intercompany trade receivables or payables incurred in the ordinary course of business that are reflected in the books and records of the parties or otherwise documented in writing in accordance with past practices.

Section 4.3 Resignation. On or before the Rights Closing Effective Time:

(a) SHLD shall deliver to SHO the resignation, effective as of the Rights Closing Effective Time, of each Person who is an officer or a director of any member of the SHO Group immediately prior to the Rights Closing Effective Time and who will be an employee or officer of any member of the SHLD Group immediately after the Rights Closing Effective Time.

(b) SHO shall deliver to SHLD the resignation, effective as of the Rights Closing Effective Time, of each Person who is an officer or a director of any member of the SHLD Group immediately prior to the Rights Closing Effective Time and who will be an employee or officer of any member of the SHO Group immediately after the Rights Closing Effective Time.

ARTICLE V

GENERAL PROVISONS

Section 5.1 Implementation Documents. In order to effectuate the transactions contemplated in this Agreement, each of SHLD and SHO shall execute and deliver, or cause to be executed and delivered, such deeds, bills of sale, instruments of assumption, instruments of assignment, stock powers, certificates of title and other instruments of assignment, transfer, contribution, assumption, license and conveyance (collectively, the “Implementation Documents”) as and to the extent necessary to effect such transactions.

Section 5.2 Unreleased Liabilities. If at any time after the Rights Closing Effective Time, any member of the SHLD Group shall remain obligated to any Third Party in respect of any SHO Liability or any member of the SHO Group shall remain obligated to any Third Party in respect of any SHLD Liability, in each case, as guarantor, assignor, original tenant, primary obligor or otherwise, the following provisions shall apply. Any Liability referred to in this Section 5.2 is hereinafter referred to as an “Unreleased Liability” and any Person remaining obligated for such Liability is hereinafter referred to as an “Unreleased Person”.

 

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(a) Nothing in this Agreement shall release any Unreleased Person with respect to any obligation to any applicable Third Party for such Unreleased Liability as provided in the relevant Contract, applicable Law or other source of such Unreleased Liability, provided that such Unreleased Person shall be entitled to indemnification pursuant to Section 10.4.

(b) The parties hereto shall continue on and after the Rights Closing Effective Time to use reasonable efforts to cause each Unreleased Person to be released from each of its Unreleased Liabilities.

(c) If, as and when it becomes possible to delegate, novate or extinguish any Unreleased Liability in favor of an Unreleased Person, the relevant party shall, promptly execute and deliver, or cause to be promptly executed and delivered, all such documents and perform all such other acts, as may be necessary or desirable to give effect to such delegation, novation, extinction or other release without payment of any further consideration by the Unreleased Person.

Section 5.3 Deferred Transfers.

(a) If and to the extent that the transfer, assignment or novation to the SHO Group of any SHO Assets or SHO Liabilities, or to the SHLD Group of any SHLD Assets or SHLD Liabilities, would be a violation of applicable Law or require any Consent or Governmental Approval or the fulfillment of any condition that cannot be fulfilled by the applicable member of the SHO Group or the SHLD Group (the “Transfer Impediments,” which for the avoidance of doubt, shall not include purely monetary condition to the extent the necessary funds are advanced, assumed, or agreed in advance to be reimbursed by the applicable transferee), then the transfer, assignment or novation to the transferee or assignee of such SHO Assets or SHO Liabilities or SHLD Assets or SHLD Liabilities shall be automatically deemed deferred and any such purported transfer or assignment shall be null and void until such time as all Transfer Impediments have been removed. Any such Liability shall be deemed a “Deferred Transfer Liability” and any such Asset shall be deemed a “Deferred Transfer Asset.”

(b) If the transfer or assignment of any Deferred Transfer Asset or assumption of any Deferred Transfer Liability is not consummated prior to or at the Rights Closing Effective Time, whether as a result of the provisions of Section 5.3(a) or for any other reason, then, insofar as reasonably possible, (i) the Person retaining such Deferred Transfer Asset shall thereafter hold such Deferred Transfer Asset for the use and benefit of the Person entitled thereto (at the expense of the Person entitled thereto) and (ii) the Person intended to assume such Deferred Transfer Liability shall, or shall cause the applicable member of its Group to, pay or reimburse the Person retaining such Deferred

 

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Transfer Liability for all amounts paid or incurred in connection with the retention of such Deferred Transfer Liability. In addition, the Person retaining such Deferred Transfer Asset shall, insofar as reasonably possible and to the extent permitted by applicable Law, treat such Asset in the ordinary course of business in accordance with past practice and take such other actions as may be reasonably requested by the Person to which such Deferred Transfer Asset is to be transferred in order to place such Person, insofar as reasonably possible, in the same position as if such Deferred Transfer Asset had been transferred as contemplated hereby and so that all the benefits and burdens relating to such Deferred Transfer Asset, including, possession, use, risk of loss, potential for gain, and dominion, control and command over such Deferred Transfer Asset, are to inure from and after the Rights Closing Effective Time to the member or members of the SHO Group or the SHLD Group entitled to the receipt of such Deferred Transfer Asset.

(c) If and when all Transfer Impediments, which caused the deferral of transfer of any Deferred Transfer Asset or Deferred Transfer Liability pursuant to Section 5.3(a), are removed, the transfer, assignment or novation of the applicable Deferred Transfer Asset or Deferred Transfer Liability shall be effected in accordance with and subject to the terms of this Agreement and any applicable Ancillary Agreement or Implementation Document.

(d) The Person retaining any Deferred Transfer Asset or Deferred Transfer Liability due to the deferral of the transfer or assignment of such Deferred Transfer Asset or the deferral of the assumption of such Deferred Transfer Liability pursuant to Section 5.3(a) or otherwise shall continue on and after the Rights Closing Effective Time to use commercially reasonable efforts to remove all Transfer Impediments; provided, however, that such Person shall not be obligated, in connection with the foregoing, to expend any money unless the necessary funds are advanced, assumed, or agreed in advance to be reimbursed by the Person entitled to such Deferred Transfer Asset or the Person intended to be subject to such Deferred Transfer Liability.

(e) Any Deferred Transfer Asset shall be deemed to have been contributed, distributed, assigned, transferred, conveyed, licensed or delivered pursuant to this Section 5.3 on the date such transfer should have occurred pursuant to Section 2.1 in the absence of the Transfer Impediments upon its actual contribution, distribution, assignment, transfer, conveyance, license or delivery to the applicable Group as contemplated in Section 5.3. Any Deferred Transfer Liability shall be deemed to have been accepted or assumed pursuant to this Section 5.3 on the date such assumption should have occurred pursuant to Section 2.1 in the absence of the Transfer Impediments upon its actual acceptance or assumption by the applicable Group as contemplated in Section 5.3.

Section 5.4 Transfers of Assets or Liabilities Following the Business Separation. Subject to Section 5.3, if at any time on or after the Business Separation (including after the Rights Closing Effective Time), any member of the SHLD Group or the SHO Group shall receive or otherwise possess any Asset or incur any Liability that is

 

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allocated to a member of the other Group pursuant to this Agreement or an Ancillary Agreement, such Person shall, in accordance with the terms hereof, promptly transfer, or cause to be transferred, such Asset or Liability to the Person so entitled thereto or responsible therefor, and such other Person shall accept or assume, or cause to be accepted or assumed, such Asset or Liability. Prior to such transfer, such Person shall hold such Asset or Liability in trust for such other Person so entitled thereto or responsible therefor.

Section 5.5 Corporate Names; Trademarks. Except as specifically provided in the License Agreements or other Ancillary Agreements, after the Rights Closing Effective Time, no member of one Group may use any trademark, service mark, trade dress, Internet domain name, logo or other source identifier (collectively, the “Marks”) owned by any member of the other Group, except as permitted under applicable Law or subsequent agreement in writing between the parties. Notwithstanding the foregoing or anything in the Ancillary Agreements to the contrary, no member of one Group shall be required to take any action to remove any reference to any Mark of a member of the other Group from materials already in the rightful possession of customers or other Third Parties as of the Rights Closing Effective Time.

Section 5.6 Certain Matters Governed Exclusively by Ancillary Agreements.

(a) Effective on the Rights Closing Date, the parties hereto shall, and shall cause applicable members of their respective Groups to, execute and deliver the Ancillary Agreements.

(b) Each of SHLD and SHO agrees on behalf of itself and members of its Group that, except as otherwise expressly provided for in this Agreement or any Ancillary Agreement, (i) the Tax Sharing Agreement shall exclusively govern all matters relating to Taxes between such parties, (ii) the Employee Transition and Administrative Services Agreement shall exclusively govern all matters relating to the separation of employees and other employee-related matters identified therein between such parties and (iii) the other Ancillary Agreements shall exclusively govern those matters subject to such agreements.

Section 5.7 Disclaimer of Representations and Warranties.

(a) SHO (on behalf of itself and each member of the SHO Group) understands and agrees that, except as expressly set forth in any Ancillary Agreement, no party to this Agreement, any Ancillary Agreement or any other agreement or document contemplated by this Agreement, any Ancillary Agreement or otherwise, is representing or warranting in any way as to the SHO Assets or SHO Liabilities transferred, assumed or retained as contemplated hereby or thereby, as to any Consents or Governmental Approvals required in connection therewith, as to the value or freedom from any Encumbrances of, or any other matter concerning, any SHO Asset or SHO Liability, or as to the absence of any

 

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defense or right of setoff or freedom from counterclaim with respect to any claim or other SHO Asset, including, any accounts receivable of any party, or as to the legal sufficiency of any assignment, document or instrument delivered hereunder or thereunder to convey title to any SHO Asset or thing of value upon the execution, delivery and filing hereof or thereof.

(b) SHLD (on behalf of itself and each member of the SHLD Group) understands and agrees that, except as expressly set forth in any Ancillary Agreement, no party to this Agreement, any Ancillary Agreement or any other agreement or document contemplated by this Agreement, any Ancillary Agreement or otherwise, is representing or warranting in any way as to the SHLD Assets or SHLD Liabilities transferred, assumed or retained as contemplated hereby or thereby, as to any Consents or Governmental Approvals required in connection therewith, as to the value or freedom from any Encumbrances of, or any other matter concerning, any SHLD Asset or SHLD Liability, or as to the absence of any defense or right of setoff or freedom from counterclaim with respect to any claim or other SHLD Asset, including, any accounts receivable of any party, or as to the legal sufficiency of any assignment, document or instrument delivered hereunder to convey title to any SHLD Asset or thing of value upon the execution, delivery and filing hereof or thereof.

(c) Except as may expressly be set forth in any Ancillary Agreement, all SHO Assets and SHLD Assets are being transferred on an “as is,” “where is” basis (and, in the case of transfer of any real property, by means of a special or limited warranty deed or similar form of deed, instrument of assignment or conveyance) and the respective transferees shall bear the economic and legal risks that (i) any conveyance shall prove to be insufficient to vest in the transferee good and marketable title (or leasehold, as applicable), free and clear of any Encumbrance, and (ii) any necessary Consents or Governmental Approvals are not obtained or any requirements of Law are not complied with.

ARTICLE VI

CONFIDENTIALITY; EXCHANGE OF INFORMATION

Section 6.1 Agreement for Exchange of Information; Archives.

(a) Except in the case of an Action or threatened Action by either party hereto or any Person in such party’s Group against the other party hereto or any Person in its Group, and subject to Section 6.1(b), each party hereto shall provide, or cause to be provided, to the other party or any member of its Group, at any time before or after the Business Separation, as soon as reasonably practicable after written request therefor, all Information in the possession or under the control of its Group (and access to employees of its Group during normal business hours and upon reasonable notice in connection with the discussion and explanation of such Information), which any member of the other

 

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party’s Group reasonably requests and is necessary (i) to comply with reporting, disclosure, filing or other requirements under applicable Law or imposed by any national securities exchange or any Governmental Authority having jurisdiction over such Person, (ii) for use in any other judicial, regulatory, administrative or other proceeding or in order to satisfy audit, accounting, regulatory, litigation or other similar requirements or (iii) to comply with its obligations under this Agreement or any Ancillary Agreement. The receiving party shall use any Information received pursuant to this Section 6.1(a) solely to the extent reasonably necessary to satisfy the applicable obligations or requirements described in clause (i), (ii) or (iii) of the immediately preceding sentence.

(b) Subject to the last sentence of this Section 6.1(b), in the event that either SHLD or SHO, as applicable, reasonably determines that the exchange of any Information pursuant to Section 6.1(a) could be commercially detrimental, violate any Law or agreement or waive or jeopardize any attorney-client privilege or attorney work product protection, such party shall not be required to provide access to or furnish such Information to the other party; provided, however, that the parties shall take all commercially reasonable measures to permit the compliance with Section 6.1(a) in a manner that avoids any such harm or consequence. Both SHLD and SHO intend that any provision of access to or the furnishing of Information pursuant to this Section 6.1 that would otherwise be within the ambit of any legal privilege shall not operate as waiver of such privilege.

(c) Except as otherwise provided in the Ancillary Agreements, a member of one Group will only process Information about individual customers and/or employees, including, names, addresses, telephone numbers, account numbers, customer lists, and demographic, financial and transaction information, in each case provided by the other Group pursuant to this Section 6.1, in accordance with the privacy policies of SHLD existing as of the Rights Closing Effective Time and all applicable privacy and data protection law obligations and will implement and maintain at all times appropriate technical and organizational measures to protect such personal data against unauthorized or unlawful processing and accidental loss, destruction, damage, alteration and disclosure. In addition, each party hereto agrees to provide reasonable assistance to the other party’s Group in respect of any obligations under privacy and data protection Law affecting the disclosure of such personal data to the other party’s Group and will not knowingly process such personal data in such a way to cause the other party’s Group to violate any of its obligations under any applicable Law.

(d) The party requesting Information shall reimburse the other party for the reasonable out of pocket costs and expenses, if any, in complying with a request for Information pursuant to this Article VI.

Section 6.2 Ownership of Information. Except as otherwise provided in the Ancillary Agreements, all Information owned by one Group that is provided to the other Group hereunder shall be deemed to remain the property of the providing party and nothing herein shall be construed as granting or conferring rights of license or otherwise in any such Information.

 

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Section 6.3 Record Retention.

(a) To facilitate the possible exchange of Information pursuant to this Article VI and other provisions of this Agreement, except as otherwise expressly provided in any Ancillary Agreement, (i) each party hereto shall, and shall cause members of its Group to, use reasonable best efforts to retain all Information in accordance with their respective record retention policies and procedures as in effect as of the Rights Closing Effective Time and (ii) no party hereto shall destroy, or permit any member of its Group to destroy, any Information which any member of the other Group may have the right to obtain pursuant to this Agreement prior to the later of the period in the applicable retention policy or the fifth (5th) anniversary of the Rights Closing Date without first notifying the other party hereto of the proposed destruction and giving the other party hereto the opportunity to take possession of such Information prior to such destruction.

(b) Each of the parties hereto shall, and shall cause members of its respective Group to, use reasonable efforts to deliver to the other party (i) on or prior to the Rights Closing Effective Time, any and all original corporate organizational books that such party or any member of its Group has in its possession primarily relating to the other party’s Business, (ii) on or prior to the Rights Closing Effective Time, originals of any and all Records that any member of its Group knowingly has in its possession or control, whether in paper or electronic format, in each case relating primarily to the other party’s Business, and (iii) as soon as reasonably practicable following their discovery, originals of any materials described in (i) and (ii) above which it or any member of its Group discovers are in its possession or control following the Rights Closing Effective Time; provided, however, that with respect to clauses (i), (ii) and (iii) of this paragraph (b), the party providing such Records may retain copies of any such Records that relate to its Business, including, corporate minute books and risk management files.

Section 6.4 Production of Witnesses; Records; Cooperation.

(a) After the Rights Closing Effective Time, but only with respect to a Third Party Claim, each of SHLD and SHO shall, and shall cause the other members of its Group to, use commercially reasonable efforts to, make available, upon written request, their former, current and future directors, officers, employees, other personnel and agents (whether as witnesses or otherwise) and any books, records or other documents within their control or that they otherwise have the ability to make available, to the extent that each such Person (giving consideration to business demands of such directors, officers, employees, other personnel and agents) or books, records or other documents may reasonably be required in connection with any Action or threatened or contemplated Action (including preparation for such Action) in which SHLD or SHO, as applicable,

 

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may from time to time be involved, regardless of whether such Action is a matter with respect to which indemnification may be sought hereunder. The requesting party shall bear all out-of-pocket costs and expenses in connection therewith.

(b) SHLD and SHO shall use their commercially reasonable efforts to cooperate and consult to the extent reasonably necessary with respect to any Actions or threatened or contemplated Actions involving each other’s Group, other than an Action against the other Group.

(c) The obligation of SHLD and SHO to make available former, current and future directors, officers, employees and other personnel and agents or provide witnesses and experts pursuant to this Section 6.4 is intended to be interpreted in a manner so as to facilitate cooperation and shall include the obligation to make available employees and other officers without regard to whether such individual or the employer of such individual could assert a possible business conflict (subject to the exception set forth in the first sentence of Section 6.4(a)). Without limiting the foregoing, each of SHLD and SHO agrees that neither it nor any Person or Persons in its respective Group will take any adverse action against any Person of its Group based on such Person’s provision of assistance or information to the other Group pursuant to this Section 6.4.

(d) Upon the reasonable request of SHLD or SHO, SHLD and SHO shall, and shall cause all other relevant members of their respective Group to, enter into a mutually acceptable common interest agreement so as to maintain to the extent practicable any applicable attorney-client privilege or work product immunity of any member of either Group.

Section 6.5 Confidential Information.

(a) Subject to Section 6.6, each of SHLD and SHO, on behalf of itself and each Person in its respective Group, shall hold, and cause its respective Representatives to hold, in strict confidence and not release or disclose, with at least the same degree of care, that it applies to its own confidential and proprietary information pursuant to policies in effect as of the Rights Closing Effective Time, all Information concerning the other Group or its business that is either in its possession (including Information in its possession prior to the Business Separation) or furnished by the other Group or its respective Representatives at any time pursuant to this Agreement or any Ancillary Agreement or the transactions contemplated hereby and thereby (any such Information referred to herein as “Confidential Information”), and shall not use any such Confidential Information other than for such purposes as shall be expressly permitted hereunder or thereunder. Notwithstanding the foregoing, Confidential Information shall not include Information that is (i) in the public domain through no fault of any member of the SHLD Group or the SHO Group, as applicable, or any of its respective Representatives, (ii) later lawfully acquired by any member of the SHLD Group or the SHO Group, as applicable, or any of its respective Representatives, from other sources not bound by a confidentiality

 

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obligation, or (iii) independently developed by any member of the SHLD Group or the SHO Group, as applicable, or any of its respective Representatives, without reference to any Confidential Information of the SHLD Group or the SHO Group, as applicable. Notwithstanding the foregoing, each of SHLD and SHO may release or disclose, or permit to be released or disclosed, any such Confidential Information concerning the other Group to their Representatives who need to know such Confidential Information (who shall be advised of the obligations hereunder with respect to such Confidential Information), provided that the parties hereto shall be responsible for any breach of this Article VI by the Representatives of their respective Groups.

(b) Each party hereto shall maintain and develop, and shall cause members of its respective Group to maintain and develop, such policies and procedures, necessary or appropriate, to ensure compliance with Section 6.5(a).

(c) Without limiting the foregoing, when any Confidential Information concerning the other Group or its business is no longer needed for the purposes contemplated by this Agreement or any Ancillary Agreement, each of SHLD and SHO will, promptly after request of the other party, either return all Confidential Information in tangible form (including all copies thereof and all notes, extracts or summaries based thereon) or certify to the other party, that it has destroyed such Confidential Information (other than electronic copies residing in automatic backup systems or one copy retained to the extent required by law, regulation or a bona fide document retention policy).

Section 6.6 Protective Arrangement. If any party hereto or any member of its Group either determines on the advice of its counsel that it is required to disclose any Confidential Information pursuant to applicable Law or receives any demand under lawful process or from any Governmental Authority to disclose or provide Information of any other party (or any member of such party’s Group), such party required to disclose such Confidential Information shall give the other party prompt, to the extent legally permitted and reasonably practicable, prior notice of such disclosure and an opportunity to contest such disclosure and shall use commercially reasonable efforts to cooperate, at the expense of the requesting Person, in seeking any reasonable protective arrangements requested by such Person. In the event that such appropriate protective order or other remedy is not obtained, the Person that is required to disclose such Information may furnish, or cause to be furnished, only that portion of such Confidential Information that is legally required to be disclosed and shall take commercially reasonable steps to ensure that confidential treatment is accorded such Information.

Section 6.7 Other Agreements Providing for Exchange of Information. The rights and obligations granted or created under this Article VI are subject to any specific limitations, qualifications or additional provisions on the sharing, exchange, retention or confidential treatment of Information set forth in any Ancillary Agreement.

 

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Section 6.8 Privileged Matters. To allocate the interests of each party in the Information as to which any party is entitled to assert a privilege in connection with professional services that have been provided prior to the Rights Closing Effective Time for the collective benefit of each of the members of the SHLD Group and the members of the SHO Group, whether or not such a privilege exists or the existence of which is in dispute, the parties hereto agree as follows:

(a) SHLD shall be entitled, in perpetuity, to control the assertion or waiver of all privileges in connection with privileged Information which relates to the SHLD Business and, subject to Section 6.8(c), not to the SHO Business, whether or not the privileged Information is in the possession of or under the control of members of the SHLD Group or the SHO Group. SHLD also shall be entitled, in perpetuity, to control the assertion or waiver of all privileges in connection with privileged Information which relates to any pending or future Action that is, or which SHLD reasonably anticipates may become, an SHLD Liability and that is not also, or that SHLD reasonably anticipates will not become, an SHO Liability, whether or not the privileged Information is in the possession of or under the control of members of the SHLD Group or the SHO Group.

(b) Subject to Section 6.8(c), SHO shall be entitled, in perpetuity, to control the assertion or waiver of all privileges in connection with privileged Information which relates to the SHO Business and not to the SHLD Business, whether or not the privileged Information is in the possession of or under the control of members of the SHLD Group or the SHO Group. SHO also shall be entitled, in perpetuity, to control the assertion or waiver of all privileges in connection with privileged Information which relates to any pending or future Action that is, or which SHO reasonably anticipates may become, an SHO Liability and that is not also, or that SHO reasonably anticipates will not become, an SHLD Liability, whether or not the privileged Information is in the possession of or under the control of members of the SHLD Group or the SHO Group.

(c) SHLD shall be entitled, in perpetuity, to control the assertion or waiver of all privileges in connection with privileged Information which relates to the Business Separation, the Rights Offering or the transactions contemplated thereby, it being understood and agreed that the expectation and intention as between SHLD and SHO with respect to any communications between advisors to SHLD and SHO occurring up to and including the Rights Closing Date in connection with the Business Separation, the Rights Offering and such transactions are that the privilege and the expectation of client confidence belong exclusively to SHLD.

(d) Subject to the restrictions in this Section 6.8, SHLD and SHO agree that they shall have equal right to assert all privileges (“Shared Privileges”)

 

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not allocated pursuant to the terms of Section 6.8(a), (b) or (c) with respect to Information as to which the members of both the SHLD Group and the SHO Group may assert a privilege.

(e) Each party hereto shall ensure that no member of its Group may waive any Shared Privilege, without the written consent of the other party which shall not be unreasonably withheld or delayed.

(f) In the event of an Action between one or more members of the SHO Group, on the one hand, and one or more members of the SHLD Group, on the other hand, each such party shall have the right to use any Information that may be subject to a Shared Privilege, without obtaining the consent of the other party, it being understood and agreed that the use of Information with respect to the Action or other dispute between the members of the SHO Group, on the one hand, and the members of the SHLD Group, on the other hand, shall not operate as or be used by either party as a basis for asserting a waiver of such Shared Privilege with respect to Third Parties.

(g) If a dispute arises between any member of the SHO Group, on the one hand, and any member of the SHLD Group, on the other hand, regarding whether a Shared Privilege should be waived to protect or advance the interest of either party, each party hereto agrees that it shall negotiate in good faith and endeavor to minimize any prejudice to the rights of the other party, and shall not unreasonably withhold consent to any request for waiver by the other party. Each party hereto specifically agrees that it will not withhold consent to waiver for any purpose except to protect its own legitimate interests.

(h) Upon receipt by either party hereto or by any member of its Group of any subpoena, discovery or other request which arguably calls for the production or disclosure of Information subject to a Shared Privilege or as to which the other party or a member of such other party’s Group has the sole right hereunder to assert a privilege, or if either party obtains knowledge that any of its Group’s current or former directors, officers, agents or employees have received any subpoena, discovery or other requests which arguably call for the production or disclosure of such privileged Information, such party shall promptly notify the other party of the existence of the request and shall provide the other party a reasonable opportunity to review the Information and to assert any rights it or any member of its Group may have under this Section 6.8 or otherwise to prevent the production or disclosure of such privileged Information. Each party shall bear its own expenses in connection with any such request.

(i) The transfer of all Records and other Information and each party’s retention of Records and other Information which may include privileged Information of the other pursuant to this Agreement is made in reliance on the

 

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agreement of SHLD and SHO, as set forth in this Article VI, to maintain the confidentiality of the Information and to assert and maintain all applicable privileges. The access to Information being granted and the agreement to provide witnesses herein, the furnishing of notices and documents and other cooperative efforts contemplated hereby, and the transfer of privileged Information between and among the parties hereto and members of their respective Groups pursuant hereto shall not be deemed a waiver of any privilege that has been or may be asserted under this Agreement or otherwise.

ARTICLE VII

FINANCIAL AND OTHER INFORMATION

Section 7.1 Financial and Other Information.

(a) This Section 7.1(a) shall not apply if the Rights Closing Effective Time occurs in the fourth quarter of SHLD’s fiscal year. As soon as practicable, and in any event no later than the earlier of (A) 35 days prior to the date SHO publicly files its first quarterly report with the SEC that includes its financial statements for such fiscal quarter (the “SHO Quarterly Report”) or otherwise makes the SHO Quarterly Report publicly available or (B) 35 days before SHLD is required to file with the SEC its quarterly financial statements following the Rights Closing Effective Time, SHO shall deliver to SHLD a substantially final draft of the SHO Quarterly Report certified by the chief financial officer of SHO as presenting fairly, in all material respects, the financial condition and results of operations of the SHO Group. Following such delivery, (i) SHO and SHLD shall actively consult with each other regarding any changes (whether or not substantive) which SHO may consider making to the SHO Quarterly Report and related disclosures prior to the filing with the SEC, with particular focus on any changes which would have any effect upon SHLD’s financial statements or related disclosures and (ii) SHO shall deliver to SHLD all material revisions to such draft as soon as any such revisions are prepared or made.

(b) As soon as practicable, and in any event no later than the earlier of (A) 45 days prior to the date SHO publicly files its first annual report with the SEC that includes its financial statements for the fiscal year in which the Rights Closing Effective Time occurs (the “SHO Annual Report”) or otherwise makes the SHO Annual Report publicly available or (B) 45 days before SHLD is required to file with the SEC its annual financial statements for such fiscal year, SHO shall deliver to SHLD the substantially final draft of the SHO Annual Report certified by the chief financial officer of SHO as presenting fairly, in all material respects, the financial condition and results of operations of the SHO Group. Following such delivery, (i) SHO and SHLD shall actively consult with each other regarding any changes (whether or not substantive) which SHO may consider making to the SHO Annual Report and related disclosures prior to the filing with the SEC, with particular focus on any changes which would have any effect upon SHLD’s financial statements or related disclosures and (ii) SHO shall deliver all material revisions to such drafts as soon as any such revisions are prepared or made.

 

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(c) (i) With respect to Public Filings by SHLD, until the date on which SHLD’s annual report on Form 10-K for the year in which the Rights Closing Effective Time occurs is filed, and (ii) with respect to Public Filings by SHO, until the date on which the SHO Annual Report is filed, SHLD and SHO shall cooperate fully, and cause their respective accountants to cooperate fully, to the extent requested by the other party, in the preparation of the other party’s public earnings releases, annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and other proxy, information and registration statements, reports, notices, prospectuses and filings made with the SEC or any national securities exchange or otherwise made publicly available (collectively, the “Public Filings”). SHLD and SHO agree to provide to each other all Information that the other party reasonably requests in connection with any Public Filings or that, in either party’s judgment, is required to be disclosed or incorporated by reference therein under any Law. Such Information shall be provided by such party in a timely manner to enable the other party to prepare, print and release all Public Filings on such dates as such party shall determine. SHLD and SHO shall use their reasonable best efforts to cause their respective auditors to consent to any reference to them as experts in any Public Filings required under any Law. If and to the extent requested by either party, the other party shall diligently and promptly review all drafts of such Public Filings.

(d) To the extent it relates to a pre-Rights Closing Effective Time period, SHO shall authorize its auditors to make available to SHLD’s auditors both the personnel who performed or are performing the annual audit of SHO and work papers related to the annual audit of SHO, in all cases within a reasonable time prior to the opinion date of SHLD’s auditors, so that SHLD’s auditors are able to perform the procedures they consider necessary to take responsibility for the work of the SHO’s auditors as it relates to the SHLD’s auditors’ report on SHLD’ annual financial statements, all within sufficient time to enable SHLD to meet its timetable for the printing, filing and public dissemination of SHLD’s audited annual financial statements.

(e) To the extent it relates to a pre-Rights Closing Effective Time period, SHO shall provide SHLD’s auditors and management access to personnel and Records of members of its Group so that SHLD may conduct reasonable audits relating to the financial statements provided by SHO pursuant to the provisions of this Section 7.1.

(f) To the extent it relates to a pre-Rights Closing Effective Time period, (i) each of the parties hereto shall give the other party hereto as much prior notice as is reasonably practicable of any changes in, or proposed determination of, its accounting estimates or accounting principles from those in effect as of immediately prior to the Rights Closing Effective Time or of any other action with regard to its accounting estimates or accounting principles or previously reported financial results which may affect the other party’s financial results, (ii) each of the parties hereto will consult with

 

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the other and, if requested by the party contemplating such changes, with such party’s auditor and (iii) unless required by generally accepted accounting principles, Law or a Governmental Authority, SHO shall not make such determination or changes which would affect SHLD’s previously reported financial results without SHLD’s prior written consent, which shall not be unreasonably withheld. Further, SHO will give SHLD prompt notice of any amendments or restatements of accounting statements with respect to pre-Rights Closing Effective Time period, and will provide SHLD with access as provided in Article VII as promptly as possible such that SHLD will be able to satisfy its financial reporting requirements.

(g) Until the end of the fiscal year of SHLD in which the Rights Closing Date occurs, SHO shall, and shall cause each member of its Group to, maintain a fiscal year that commences and ends on the same calendar days as SHLD’s fiscal year commences and ends, and to maintain monthly accounting periods that commence and end on the same calendar days as SHLD’s monthly accounting periods commence and end.

(h) If either SHO or SHLD is the subject of any SEC comment, review or investigation (formal or informal) and which in any way relates to the other party or the other party’s Public Filings, such party shall provide the other party with a copy of any comment or notice of such review or investigation and shall give the other party a reasonable opportunity to be involved in responding to such comment, review or investigation, and the other party shall cooperate with such party in connection with responding to such comment, review or investigation.

(i) Within 10 days after the end of each quarter following the Rights Closing Effective Time during which SHLD and SHO are Affiliates, each of SHLD and SHO shall (i) provide the other party hereto with all related party Information required to be disclosed under the applicable law with respect to such quarter and (ii) cooperate to provide consistent disclosure with regard to such Information in any Public Filings.

(j) Subject to Section 6.5(a), Information provided pursuant to this Section 7.1, other than information required to be included in the Public Filings, shall be deemed Confidential Information for purposes of this Agreement. Nothing in this Section 7.1 shall require SHLD or SHO to violate any agreement with any of its customers, suppliers or other third parties regarding the confidentiality of Information relating to such customer, supplier or other third party or its business; provided that in the event that SHLD or SHO is required under this Section 7.1 to disclose any such Information, SHLD or SHO shall use all commercially reasonable efforts to seek to obtain such customers’, suppliers’ or other third parties’ consent to the disclosure of such Information.

(k) Each party hereto agrees and acknowledges, on behalf of itself and members of its Group, that it is aware and will advise its Representatives who receive information provided hereunder and are otherwise not aware, that (i) the information

 

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provided hereunder may contain material, non-public information concerning the other party and (ii) that United States securities laws prohibit any person who has material non-public information concerning a publicly traded Person from purchasing or selling securities of such Person, or from communicating such information to any other Person under circumstances in which it is reasonably foreseeable that such Person is likely to purchase or sell such securities.

Section 7.2 Sarbanes-Oxley Section 404 Compliance. Following the Business Separation, each party hereto shall continue to provide access to the other party hereto on a timely basis all Information reasonably required to meet its schedule for management’s assessment of the effectiveness of its disclosure controls and procedures and its internal control over financial reporting in accordance with Items 307 and 308, respectively, of Regulation S-K and, to the extent applicable to such party, its auditor’s audit of its internal control over financial reporting and management’s assessment thereof in accordance with Section 404 of the Sarbanes-Oxley Act of 2002 and the SEC’s and Public Company Accounting Oversight Board’s rules and auditing standards thereunder (such assessments and audit being referred to as the “Internal Control Audit and Management Assessments”). Without limiting the generality of the foregoing, each party hereto will provide all required financial and other Information with respect to itself and members of its Group (including access to personnel and Records) to the other party’s auditors and management in a sufficient and reasonable time and in sufficient detail to permit such other party’s auditors and management to complete the Internal Control Audit and Management Assessments.

ARTICLE VIII

INSURANCE

Section 8.1 Insurance Matters.

(a) SHO does hereby, for itself and each other member of the SHO Group, agree that no member of the SHLD Group or any SHLD Indemnified Party shall have any liability whatsoever as a result of the insurance policies and practices of SHLD and its Affiliates as in effect at any time prior to the Rights Closing Effective Time, including as a result of the level or scope of any such insurance, the creditworthiness of any insurance carrier, the terms and conditions of any policy, the adequacy or timeliness of any notice to any insurance carrier with respect to any claim or potential claim or otherwise, any professional or other advice with respect to the initial policies for SHO, any handling of claims for SHO, or any oversight or advice with respect to risk management or other insurance-related issues; provided this Section 8.1(a) shall not negate SHLD’s agreement under Section 8.1(b).

(b) SHLD agrees to use its reasonable best efforts to cause the interests and rights of SHO and the other members of the SHO Group as of the Rights Closing

 

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Effective Time as insureds or beneficiaries or in any other capacity under occurrence-based insurance policies and programs (and under claims-made policies and programs to the extent a claim has been submitted prior to the Rights Closing Effective Time) of SHLD or any other member of the SHLD Group in respect of the period prior to the Rights Closing Effective Time to survive the Rights Closing Effective Time for the period for which such interests and rights would have survived without regard to the transactions contemplated hereby to the extent permitted by such policies; and any proceeds received by SHLD or any other member of the SHLD Group after the Rights Closing Effective Time under such policies and programs in respect of SHO and the other members of the SHO Group shall be for the benefit of SHO and the other members of the SHO Group; provided that the interests and rights of SHO and the other members of the SHO Group shall be subject to the terms and conditions of such insurance policies and programs, including any limits on coverage or scope, any deductibles and other fees and expenses and SHLD’s allocation of the cost of claims to its business units, including SHO, according to its allocation program in effect as of the Rights Closing Effective Time, and shall be subject to the following additional conditions:

(i) SHO shall report, on behalf of itself and other members of the SHO Group, as promptly as practicable claims in accordance with SHLD’s claim reporting procedures in effect immediately prior to the Rights Closing Effective Time (or in accordance with any modifications to such procedures after the Rights Closing Effective Time communicated by SHLD to SHO in writing);

(ii) SHO and the other members of the SHO Group shall indemnify, hold harmless and reimburse SHLD and the other members of the SHLD Group for any premiums, retrospectively rated premiums, defense costs, indemnity payments, deductibles, retentions, claim expenses and claim handling fees or other charges allocated to members of the SHO Group pursuant to the allocation program maintained by SHLD in effect as of the Rights Closing Effective Time; and

(iii) SHO shall, and shall cause other members of the SHO Group to, cooperate and assist with SHLD and other members of the SHLD Group and share such information as is reasonably necessary in order to permit SHLD and members of the SHLD Group to manage and conduct the insurance matters contemplated by this Article VIII, including, without limitation, the production of witnesses in accordance with Section 6.4.

(c) Subject to Section 8.1(b), SHLD and other members of the SHLD Group shall retain the exclusive right to control their insurance policies and programs, including the right to defense, exhaust, settle, release, commute, buy-back or otherwise resolve disputes with respect to any of their insurance policies and programs and to amend, modify or waive any rights under any such insurance policies and programs, notwithstanding whether any such policies or programs apply to any SHO Liabilities

 

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and/or claims SHO has made or could make in the future, and no member of the SHO Group shall, without the prior written consent of SHLD, erode, exhaust, settle, release, commute, buy-back or otherwise resolve disputes with insurers of SHLD or other members of the SHLD Group with respect to any of the insurance policies and programs of the SHLD Group, or amend, modify or waive any rights under any such insurance policies and programs. Neither SHLD nor any other members of the SHLD Group shall have any obligation to secure extended reporting for any claims under any of the insurance policies and programs of SHLD or other members of the SHLD Group for any acts or omissions by any member of the SHO Group incurred prior to the Rights Closing Effective Time.

(d) This Agreement is not intended as an attempted assignment of any policy of insurance or as a contract of insurance and shall not be construed to waive any right or remedy of any member of the SHO Group in respect of any insurance policy or any other contract or policy of insurance.

(e) Nothing in this Agreement shall be deemed to restrict any member of the SHO Group from acquiring at its own expense any insurance policy in respect of any Liabilities or covering any period.

Section 8.2 Miscellaneous.

(a) Each of the parties intends by this Agreement that a Third Party, including a third-party insurer or reinsurer, or other Third Party that, in the absence of the Agreement would otherwise be obligated to pay any claim or satisfy any indemnity or other obligation, shall not be relieved of the responsibility with respect thereto and shall not be entitled to a “windfall” (i.e., avoidance of the obligation that such Person would have in the absence of this Agreement). To the extent that any such Person would receive such a windfall, SHLD and SHO shall negotiate in good faith concerning an amendment of this Agreement to avoid such a windfall.

ARTICLE IX

LEGAL MATTERS

Section 9.1 Control of Legal Matters.

(a) At all times from and after the Rights Closing Effective Time, SHO shall assume (or, as applicable, retain) control of each of the SHO Litigation Matters, and SHO shall use its reasonable best efforts to cause any member of the SHLD Group named as a defendant in any such SHO Litigation Matter to be removed and dismissed from such SHO Litigation Matter; provided, however, that SHO shall not be required to make any such effort if the removal of any member of the SHLD Group would jeopardize insurance coverage or rights to indemnification from Third Parties applicable to such SHO

 

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Litigation Matter; and provided, further that the resolution of any SHO Retained Wage Law Liability described in the proviso in the definition of SHLD Assumed Wage Law Liabilities shall be controlled by SHLD and SHLD shall not settle any such SHO Retained Wage Law Liability without the prior written consent of SHO, which consent shall not be unreasonably withheld or delayed.

(b) At all times from and after the Rights Closing Effective Time, SHLD shall assume (or, as applicable, retain) control of each of the SHLD Litigation Matters (and the resolution of any Liability described in the proviso in the definition of SHLD Assumed Wage Law Liabilities), and SHLD shall use its reasonable best efforts to cause any member of the SHO Group named as a defendant in any such SHLD Litigation Matters to be removed and dismissed from such SHLD Litigation Matter; provided, however, that SHLD shall not be required to make any such effort if the removal of any member of the SHO Group would jeopardize insurance coverage or rights to indemnification from Third Parties applicable to such SHLD Litigation Matter; and provided, further that SHLD shall not settle any Liability described in the proviso in the definition of SHLD Assumed Wage Law Liabilities without the prior written consent of SHO, which consent shall not be unreasonably withheld or delayed.

(c) To the extent SHO or SHLD is unable to cause a member of the other party’s Group to be removed and dismissed pursuant to Section 9.1(a) or (b), the parties hereto agree to cooperate in defending against such Action and, subject to Section 6.8, to provide each other with access to all Information relating to such Action except to the extent that providing such access and such Information would prejudice an indemnification claim available to such party as contemplated in Article X.

(d) At all times from and after the Rights Closing Effective Time, SHLD and SHO shall jointly control any Joint Litigation Matter and shall cooperate in defending against such Action; provided, however, that no member of either Group may settle a Joint Litigation Matter without the prior written consent of the members of the other Group named or involved in such Joint Litigation Matter, which consent shall not be unreasonably withheld or delayed; provided, further, that either party may settle a Joint Litigation matter if such settlement is for monetary relief only and provides a full release from any liability under such Joint Litigation Matter for the other party and, as applicable, the members of the other party’s Group and their respective Representatives.

Section 9.2 Notice to Third Parties; Service of Process; Cooperation.

(a) SHLD and SHO shall cause the members of the SHLD Group and the members of the SHO Group to promptly notify their respective agents for service of process and all other necessary parties, including plaintiffs and courts, of the Business Separation and shall provide instructions for proper service of legal process and other documents.

 

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(b) SHO and SHLD shall, and shall cause the members of their respective Groups to, use their reasonable best efforts to deliver to each other any legal process or other documents incorrectly served upon them or their agents as soon as possible following receipt.

(c) If any party hereto or any members of its Group receives notice or otherwise learns of the assertion of a Joint Litigation Matter, such party or member of its Group shall give the other party hereto written notice of such Joint Litigation Matter in reasonable detail. The failure to give notice under this subsection shall not relieve any party hereto (or any member of its Group) its Liability for any Joint Litigation Matter as provided hereunder or under any Ancillary Agreement, except to the extent such party is actually prejudiced by the failure to give such notice. The parties hereto shall be deemed to be on notice of any Joint Litigation Matter pending prior to the Rights Closing Effective Time.

ARTICLE X

INDEMNIFICATION

Section 10.1 Release of Pre-Separation Claims.

(a) Except as provided in Section 10.1(c), effective as of the Rights Closing Effective Time, SHO does hereby, for itself and each other member of the SHO Group, their respective Affiliates, successors and assigns, and all Persons who at any time on or prior to the Rights Closing Effective Time have been stockholders, directors, officers, agents or employees of any member of the SHO Group and their respective heirs, executors, administrators, successors and assigns (in each case, in their respective capacities as such), remise, release and forever discharge SHLD and the other members of the SHLD Group, their respective Affiliates, and all Persons who at any time on or prior to the Rights Closing Effective Time have been stockholders, directors, officers, agents or employees of any member of the SHLD Group (in each case, in their respective capacities as such), and their respective heirs, executors, administrators, successors and assigns, from any and all Liabilities whatsoever, whether at law or in equity (including any right of contribution), whether arising under any contract or agreement, by operation of law or otherwise, existing or arising from any acts or events occurring or failing to occur or alleged to have occurred or to have failed to occur or any conditions existing or alleged to have existed on or before the Rights Closing Effective Time, including in connection with the transactions and all other activities to implement the Business Separation and the Rights Offering.

(b) Except as provided in Section 10.1(c), effective as of the Rights Closing Effective Time, SHLD does hereby, for itself and each other member of the SHLD Group, their respective Affiliates, and all Persons who at any time on or prior to the Rights Closing Effective Time have been stockholders, directors, officers, agents or

 

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employees of any member of the SHLD Group and their respective heirs, executors, administrators, successors and assigns (in each case, in their respective capacities as such), remise, release and forever discharge SHO, the other members of the SHO Group, their respective Affiliates, and all Persons who at any time on or prior to the Rights Closing Effective Time have been stockholders, directors, officers, agents or employees of any member of the SHO Group (in each case, in their respective capacities as such), and their respective heirs, executors, administrators, successors and assigns, from any and all Liabilities whatsoever, whether at law or in equity (including any right of contribution), whether arising under any contract or agreement, by operation of law or otherwise, existing or arising from any acts or events occurring or failing to occur or alleged to have occurred or to have failed to occur or any conditions existing or alleged to have existed on or before the Rights Closing Effective Time, including in connection with the transactions and all other activities to implement the Business Separation and the Rights Offering.

(c) Nothing contained in Section 10.1(a) or (b) shall impair any right of any Person to enforce this Agreement, any Ancillary Agreement or any other Intercompany Agreements or Intercompany Accounts that are specified in Section 4.2(b) as not to terminate as of the Rights Closing Effective Time, in each case in accordance with its terms. For the avoidance of doubt, nothing contained in Section 10.1(a) or (b) shall release any Person from:

(i) any Liability provided in or resulting from any agreement among any members of the SHLD Group or the SHO Group that is specified in Section 4.2(b) as not to terminate as of the Rights Closing Effective Time, or any other Liability specified in such Section 4.2(b) as not to terminate as of the Rights Closing Effective Time;

(ii) any Liability, contingent or otherwise, assumed, transferred, assigned or allocated to the Group of which such Person is a member in accordance with, or any other Liability of any member of any Group under, this Agreement or any Ancillary Agreement;

(iii) any Liability provided in or resulting from any other agreement or understanding that is entered into on or after the Rights Closing Date between one party hereto (or a member of such party’s Group), on the one hand, and the other party hereto (or a member of such party’s Group), on the other hand;

(iv) any Liability that the parties hereto may have with respect to indemnification or contribution pursuant to this Agreement or any Ancillary Agreement;

(v) any Liability the release of which would result in the release of any Person not otherwise intended to be released pursuant to this Section 10.1; or

 

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(vi) any obligation existing prior to the Rights Closing Effective Time of any member of a Group to indemnify any Person who has been a Representative of any member of the Group at any time on or prior to the Rights Closing Effective Time.

(d) SHO shall not make, and shall not permit any other member of the SHO Group to make, any claim or demand, or commence any Action asserting any claim or demand, including any claim of contribution or any indemnification, against SHLD or any other member of the SHLD Group, or any other Person released pursuant to Section 10.1(a), with respect to any Liabilities released pursuant to Section 10.1(a). SHLD shall not make, and shall not permit any other member of the SHLD Group to make, any claim or demand, or commence any Action asserting any claim or demand, including any claim of contribution or any indemnification against SHO or any other member of the SHO Group, or any other Person released pursuant to Section 10.1(b), with respect to any Liabilities released pursuant to Section 10.1(b).

(e) It is the intent of each of SHLD and SHO, by virtue of the provisions of this Section 10.1, to provide for a full and complete release and discharge of all Liabilities existing or arising from all acts and events occurring or failing to occur or alleged to have occurred or to have failed to occur and all conditions existing or alleged to have existed on or before the Rights Closing Effective Time, between or among SHO or any other member of the SHO Group, on the one hand, and SHLD or any other member of the SHLD Group, on the other hand (including any contractual agreements or arrangements existing or alleged to exist between or among any such members on or before the Rights Closing Effective Time), except as otherwise set forth in Section 10.1(c). At any time, at the request of the other party hereto, each party hereto shall, no later than the fifth day following the receipt of such request, cause each member of its respective Group to execute and deliver releases reflecting the provisions hereof.

Section 10.2 Indemnification by SHO. Following the Rights Closing Effective Time and subject to Section 14.1, SHO shall, and shall cause the members of the SHO Group to, indemnify, defend and hold harmless each member of the SHLD Group and its Affiliates, and each of their respective current or former directors, officers, employees, agents, and each of the heirs, executors, administrators, successors and assigns of any of the foregoing (each, a “SHLD Indemnified Party”), from and against all Liabilities actually incurred or suffered by the SHLD Indemnified Parties relating to, arising out of or resulting from one or more of the following:

(a) each SHO Liability, including arising out of the failure of any member of the SHO Group or any other Person to pay, perform or otherwise promptly discharge any such SHO Liability;

(b) the SHO Business;

 

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(c) each SHO Asset;

(d) each breach by SHO or any member of the SHO Group of this Agreement; and

(e) each breach by SHO or any member of the SHO Group of an Ancillary Agreement, subject to any specific limitation on liability contained in the Ancillary Agreement and without duplication taking into account the performance by each member of the SHO Group of its indemnification obligations in the Ancillary Agreement.

Section 10.3 Indemnification by SHLD. Following the Rights Closing Effective Time and subject to Section 14.1, SHLD shall, and shall cause the members of the SHLD Group to, indemnify, defend and hold harmless each member of the SHO Group and its Affiliates, and each of their respective current or former directors, officers, employees, agents, and each of the heirs, executors, administrators, successors and assigns of any of the foregoing (each, a “SHO Indemnified Party”), from and against any and all Liabilities arising out of or resulting from any of the following items:

(a) each SHLD Liability, including arising out of the failure of any member of the SHLD Group or any other Person to pay, perform or otherwise promptly discharge any such SHLD Liability;

(b) the SHLD Business;

(c) each SHLD Asset;

(d) each breach by SHLD or any member of the SHLD Group of this Agreement; and

(e) each breach by SHLD or any member of the SHLD Group of an Ancillary Agreement, subject to any specific limitation on liability contained in the Ancillary Agreement and without duplication taking into account the performance by each member of the SHLD Group of its indemnification obligations in the Ancillary Agreement.

Section 10.4 Indemnification with respect to Unreleased Liabilities. Without limiting the generality of Sections 10.2 and 10.3, SHLD shall indemnify, defend and hold harmless each SHO Indemnified Party that is an Unreleased Person against any Liabilities arising in respect of each Unreleased Liability of such Person and SHO shall indemnify, defend and hold harmless each SHLD Indemnified Party that is an Unreleased Person against any Liabilities arising in respect of each Unreleased Liability of such Person. SHLD and SHO shall take, and shall cause the members of their respective Groups to take, such other actions as may be reasonably requested by the other party in

 

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accordance with the provisions of this Agreement in order to place SHLD and SHO (and any relevant member of their respective Groups), insofar as reasonably possible, in the same position as they would be in if such Unreleased Liability had been fully contributed, assigned, transferred, conveyed, and delivered to, and accepted and assumed or retained, as applicable, by the other party (or any relevant member of its Group) with effect as of the Rights Closing Effective Time and so that all the benefits and burdens relating to such Unreleased Liability, including possession, use, risk of loss, potential for gain, and dominion, control and command over such Unreleased Liability, are to inure from and after the Rights Closing Effective Time to the member or members of the SHLD Group or the SHO Group, as the case may be.

Section 10.5 Adjustments to Indemnification Obligations.

(a) The parties hereto intend that each Liability subject to indemnification, contribution or reimbursement pursuant hereto will be net of (i) all Insurance Proceeds, and (ii) all recoveries, judgments, settlements, contribution, indemnities and other amounts received (including by way of set-off) from all Third Parties, in each case that actually reduce the amount of, or are paid to the applicable indemnitee in respect of, such Liability (“Third Party Proceeds”). Accordingly, the amount that a party (each an “Indemnifying Party”) is required to pay to each Person entitled to indemnification hereunder (each an “Indemnified Party”) shall be reduced by all Insurance Proceeds and Third Party Proceeds received by or on behalf of the Indemnified Party in respect of the relevant Liability; provided, however, that all amounts described in Section 10.2 or Section 10.3 which are incurred by an Indemnified Party shall be paid promptly by the Indemnifying Party and shall not be delayed pending any determination as to the availability of Insurance Proceeds or Third Party Proceeds; provided, further, that upon such payment by or on behalf of an Indemnifying Party to an Indemnified Party in connection with a Third Party Claim, to the extent permitted by applicable Laws such Indemnified Party shall assign its rights to recover all Insurance Proceeds and Third Party Proceeds to the Indemnifying Party and such Indemnifying Party shall be subrogated to and shall stand in the place of such Indemnified Party as to all events and circumstances in respect of which such Indemnified Party may have with respect to all rights, defenses, and claims relating to such Third Party Claim. If, notwithstanding the second proviso in the preceding sentence, an Indemnified Party receives a payment required to be made under this Article X (an “Indemnity Payment”) from an Indemnifying Party in respect of a Liability and subsequently receives Insurance Proceeds or Third Party Proceeds in respect of such Liability, then the Indemnified Party shall pay to the Indemnifying Party an amount equal to the excess of the amount paid by the Indemnifying Party over the amount that would have been due if such Insurance Proceeds and Third Party Proceeds had been received before the Indemnity Payment was made. Each member of the SHLD Group and each member of the SHO Group shall use reasonable best efforts to seek to collect or recover all Insurance Proceeds and all Third Party Proceeds to which such Person is entitled in respect of a Liability for which such Person seeks indemnification

 

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pursuant to this Article X; provided, however, that such Person’s inability to collect or recover any such Insurance Proceeds or Third Party Proceeds shall not limit the Indemnifying Party’s obligations hereunder.

(b) An insurer that would otherwise be obligated to pay a claim shall not be relieved of the responsibility with respect thereto or, solely by virtue of the indemnification provisions hereof, have any subrogation rights with respect thereto, it being expressly understood and agreed that no insurer or other third party shall be entitled to a “windfall” (i.e., a benefit it would not be entitled to receive in the absence of the indemnification provisions hereof) by virtue of the indemnification provisions hereof.

Section 10.6 Contribution. If the indemnification provided for in this Article X is unavailable to, or insufficient to hold harmless, an Indemnified Party in respect of a Liability for which indemnification is provided for herein then each Indemnifying Party shall, in lieu of indemnifying such Indemnified Party, contribute to the amount paid or payable by such Indemnified Party as a result of such Liability, in such proportion as shall be sufficient to place the Indemnified Party in the same position as if such Indemnified Party were indemnified hereunder. If the contribution provided for in the previous sentence shall, for any reason, be unavailable or insufficient to put the Indemnified Party in the same position as if it were indemnified under Section 10.2 or Section 10.3, as the case may be, then the Indemnifying Party shall contribute to the amount paid or payable by such Indemnified Party as a result of such Liability, in such proportion as shall be appropriate to reflect the relative benefits received by and the relative fault of the Indemnifying Party on the one hand and the Indemnified Party on the other hand with respect to the matter giving rise to the Liability.

Section 10.7 Procedures for Indemnification of Direct Claims. Each claim for indemnification made directly by the Indemnified Party against the Indemnifying Party that does not result from a Third Party Claim shall be asserted by written notice from the Indemnified Party to the Indemnifying Party specifically claiming indemnification hereunder, which notice shall state the amount claimed, if known, and method of computation thereof, and shall contain a reference to the provisions of this Agreement in respect of which such right of indemnification is claimed by such Indemnified Party. Such Indemnifying Party shall have a period of thirty (30) days after the receipt of such notice within which to respond thereto. If such Indemnifying Party does not respond within such thirty (30) day period, such Indemnifying Party shall be deemed to have accepted responsibility for the indemnification sought and shall have no further right to contest the validity of such claim. If such Indemnifying Party does respond within such thirty (30) day period and rejects such claim in whole or in part, such Indemnified Party shall be free to pursue resolution as provided in Article XI.

 

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Section 10.8 Procedures for Indemnification of Third Party Claims.

(a) If an Indemnified Party shall receive notice of the assertion of a claim, or commencement of an Action, by a Third Party against it (each, a “Third Party Claim”) that may give rise to a claim for indemnification pursuant to this Agreement, within thirty (30) days of the receipt of such notice, the Indemnified Party shall give the Indemnifying Party notice of such Third Party Claim, which notice shall describe such Third Party Claim in reasonable detail; provided, however, that the failure to provide such notice as provided in this Section 10.8 shall not release the Indemnifying Party from any of its obligations under this Article X except to the extent such Indemnifying Party is actually prejudiced by such failure to give notice.

(b) Each Indemnifying Party shall be entitled (but shall not be required) to assume and control the defense of each Third Party Claim at its expense and through counsel of its choice that is reasonably acceptable to the Indemnified Party if it gives notice of its intention to do so to the Indemnified Party within thirty (30) days of the receipt of notice from the Indemnified Party in accordance with Section 10.8(a); provided, however, that the Indemnifying Party shall not, without the prior written consent of the Indemnified Party, settle, compromise or offer to settle or compromise such Third Party Claim; provided, further, that such Indemnified Party shall not withhold such consent if the settlement or compromise (i) contains no finding or admission of a violation of Law or a violation of the rights of a Person by the Indemnified Party or any of its Affiliates, (ii) contains no finding or admission that would have an adverse effect on the Indemnified Party or any of its Affiliates as determined by the Indemnified Party in good faith, (iii) involves only monetary relief which the Indemnifying Party has agreed to pay and does not contain an injunction or other non-monetary relief affecting the Indemnified Party or any of its Affiliates, and (iv) includes a full, irrevocable unconditional release of the Indemnified Party from such Third Party Claim.

(c) If the Indemnifying Party elects to undertake the defense against a Third Party Claim as provided by Section 10.8(b), the Indemnified Party shall cooperate with the Indemnifying Party with respect to such defense and shall have the right, but not the obligation, to participate in such defense and to employ separate counsel of its choosing at its own expense; provided, however, that such expense shall be the responsibility of the Indemnifying Party if (i) the Indemnifying Party and the Indemnified Party are both named parties to the proceedings and the Indemnified Party shall have reasonably concluded that representation of both parties by the same counsel would be inappropriate due to actual or potential conflicts of interest (in which case the Indemnifying Party shall not be responsible for expenses in respect of more than one counsel for the Indemnified Party in any single jurisdiction), or (ii) the Indemnified Party assumes the defense of the Third Party Claim after the Indemnifying Party has failed, in the reasonable judgment of the Indemnified Party, to diligently defend the Third Party Claim after having elected to assume its defense.

 

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(d) If the Indemnifying Party (i) does not elect to assume the defense in accordance with Section 10.8(b), or (ii) after assuming the defense of a Third Party Claim, fails to take reasonable steps necessary to defend diligently such Third Party Claim within ten (10) days after receiving written notice from the Indemnified Party to the effect that the Indemnifying Party has so failed, the Indemnified Party shall have the right but not the obligation to assume its own defense; provided, however, that the Indemnified Party shall not settle or compromise such Third Party Claim without the consent of the Indemnifying Party, which consent shall not be unreasonably withheld. For the avoidance of doubt, the Indemnified Party’s right to indemnification for a Third Party Claim shall not be adversely affected by assuming the defense of such Third Party Claim.

(e) Subject to Article VI, the Indemnified Party and the Indemnifying Party shall cooperate in the defense of a Third Party Claim, including by making available, all witnesses, pertinent records, materials and information in each other’s possession or under each other’s control relating thereto.

Section 10.9 Remedies Cumulative. The remedies provided in this Article X shall be cumulative and, subject to the provisions of Article XI, shall not preclude assertion by any Indemnified Party of any other rights or the seeking of any and all other remedies against any Indemnifying Party.

Section 10.10 Survival of Indemnities. The rights and obligations of each of SHLD and SHO and their respective Indemnified Parties hereto under this Article X shall survive the distribution, sale or other transfer by any party of any Assets or the assignment by it of any Liabilities.

ARTICLE XI

DISPUTE RESOLUTION

Section 11.1 Disputes. Except as otherwise specifically provided in any Ancillary Agreement (the terms of which, to the extent so provided therein, shall govern the resolution of “Disputes” as that term is defined in the Ancillary Agreements), the procedures for discussion, negotiation and mediation set forth in this Article XI shall apply to all disputes, controversies or claims (whether arising in contract, tort or otherwise) that may arise out of, relate to, arise under or in connection with, this Agreement or any Ancillary Agreement, or the transactions contemplated hereby or thereby (including, all actions taken in furtherance of the transactions contemplated hereby or thereby on or prior to the Rights Closing Effective Time), between or among any member of the SHLD Group and the SHO Group (collectively, “Disputes”).

 

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Section 11.2 Dispute Resolution.

(a) On the Rights Closing Effective Time, SHLD and SHO shall form a committee (the “Executive Committee”) that will attempt to resolve all Disputes. The Executive Committee shall consist of two representatives designated by each party hereto and shall initially consist of the Chief Financial Officer and the General Counsel (or other chief legal officer) of each party. Each party hereto may replace one or more of its representatives at any time upon notice to the other party hereto.

(b) If a Dispute arises, no party hereto may take any formal legal action (such as seeking to terminate this Agreement, seeking mediation in accordance with Section 11.3, or instituting or seeking any judicial or other legal action, relief, or remedy with respect to or arising out of this Agreement) unless such party has first (i) delivered a notice of dispute (the “Dispute Notice”) to all of the members of the Executive Committee and (ii) complied with the terms of this Article XI; provided, however, that the foregoing shall not apply to any Disputes with respect to compliance with obligations with respect to confidentiality or preservation of privilege. The Executive Committee shall meet no later than the 10th Business Day following delivery of the Dispute Notice (the “Dispute Meeting”) and shall attempt to resolve each Dispute that is listed on the Dispute Notice. Each party hereto shall cause its designees on the Executive Committee to negotiate in good faith to resolve all Disputes in a timely manner. If by the 10th Business Day following the Dispute Meeting the Executive Committee has not resolved all of the Disputes (the “Resolution Failure Date”), the parties shall proceed to mediate the unresolved Disputes (“Unresolved Disputes”) in accordance with Section 11.3.

Section 11.3 Mediation of Unresolved Disputes. SHLD and SHO shall attempt to resolve all Unresolved Disputes by non-binding mediation. SHLD and SHO shall negotiate in good faith to determine the mediator, the mediator’s compensation and related costs, and the applicable rules for the mediation. If by the 15th Business Day following the Resolution Failure Date, SHLD and SHO have been unable to settle an Unresolved Dispute the obligations of Seller and Buyer in this Article XI shall terminate with respect to such Unresolved Dispute.

Section 11.4 Continuity of Service and Performance. Unless otherwise agreed in writing, the parties hereto shall continue to provide service and honor all other commitments under this Agreement and each Ancillary Agreement during the course of dispute resolution pursuant to the provisions of this Article XI with respect to all matters not subject to such Dispute.

 

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ARTICLE XII

FURTHER ASSURANCES

Section 12.1 Further Assurances.

(a) The parties hereto shall use all reasonable efforts to take, or cause to be taken, all appropriate action, to do or cause to be done all things necessary, proper or advisable under applicable Law, and to execute and deliver such documents and other papers, as may be required to carry out the provisions of this Agreement and any Ancillary Agreement and to consummate and make effective the transactions contemplated by this Agreement and the Ancillary Agreements, whether before or after the Rights Closing Effective Time.

(b) Without limiting the foregoing, prior to, on and after the Rights Closing Effective Time, each party hereto shall cooperate with the other party, and without any further consideration, but at the expense of the requesting party, to execute and deliver, or use its reasonable efforts to cause to be executed and delivered, all instruments, including, instruments of conveyance, assignment and transfer, and to make all filings with, and to obtain all necessary Consents and Governmental Approvals, including, under any permit, license, agreement, indenture or other instrument, and to take all such other actions as such party may reasonably be requested to take by any other party hereto from time to time, consistent with the terms of this Agreement and the Ancillary Agreements, in order to effectuate the provisions and purposes of this Agreement and the Ancillary Agreements and the transactions contemplated hereby and thereby.

(c) SHLD will cause to be performed and hereby guarantees the performance of all actions, agreements and obligations set forth herein to be performed by any member of the SHLD Group. SHO will cause to be performed and hereby guarantees the performance of all actions, agreements and obligations set forth herein to be performed by any member of the SHO Group.

ARTICLE XIII

AMENDMENT AND TERMINATION

Section 13.1 Sole Discretion of SHLD. Notwithstanding any other provision of this Agreement, until the Rights Distribution Date, SHLD shall have the sole and absolute discretion:

(a) to determine whether to proceed with all or any part of the Business Separation, and to determine the timing of and any and all conditions to the completion of the Business Separation or any part thereof or of any other transaction contemplated by this Agreement; and

(b) to amend or otherwise change, delete or supplement, from time to time, any term or element of the Business Separation or any other transaction contemplated by this Agreement.

 

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Section 13.2 Amendment and Termination. This Agreement may be amended, supplemented, terminated and the transactions contemplated hereby may be modified or abandoned at any time without the approval of SHO or of the stockholders of SHLD in the sole and absolute discretion of SHLD: (a) prior to the Rights Distribution Date, or (b) after the Rights Distribution Date but prior to the Rights Closing Effective Time, if the board of directors of SHLD determines, in its sole discretion, that the Rights Offering is not in the best interest of SHLD or its shareholders, or that market conditions are such that it is not advisable to consummate the Rights Offering. In the event of a termination in accordance with the foregoing, this Agreement shall forthwith become void and there shall be no Liability on the part of either party hereto; provided, however, such termination shall have no effect on any transactions effected prior to such termination pursuant to Article II and the Implementation Documents in connection therewith shall remain in full force and effect in accordance with the terms thereof. After the Rights Closing Effective Time, this Agreement may not be amended, supplemented or terminated except by an agreement in writing signed by the parties hereto.

ARTICLE XIV

MISCELLANEOUS

Section 14.1 LIMITATION OF LIABILITY.

(a) IN NO EVENT SHALL ANY MEMBER OF THE SHLD GROUP OR THE SHO GROUP BE LIABLE TO ANY MEMBER OF THE SHO GROUP OR THE SHLD GROUP, RESPECTIVELY, FOR ANY SPECIAL, CONSEQUENTIAL, INDIRECT, INCIDENTAL OR PUNITIVE DAMAGES OR LOST PROFITS, HOWEVER CAUSED AND ON ANY THEORY OF LIABILITY (INCLUDING, NEGLIGENCE) ARISING IN ANY WAY OUT OF THIS AGREEMENT, WHETHER OR NOT SUCH PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES; PROVIDED, HOWEVER, THAT THE FOREGOING LIMITATIONS SHALL NOT LIMIT AN INDEMNIFYING PARTY’S INDEMNIFICATION OBLIGATIONS HEREUNDER WITH RESPECT TO ANY LIABILITY ANY INDEMNIFIED PARTY MAY HAVE TO ANY THIRD PARTY FOR ANY SPECIAL, CONSEQUENTIAL, INDIRECT, INCIDENTAL OR PUNITIVE DAMAGES OR LOST PROFITS, EXCEPT AS OTHERWISE PROVIDED IN THE ANCILLARY AGREEMENTS.

(b) Neither party hereto nor any member of its Group shall have any Liability to the other party’s Group in the event that any Information exchanged or provided pursuant to this Agreement that is an estimate or forecast, or that is based on an estimate or forecast, is found to be inaccurate in the absence of willful misconduct by the providing Person. Neither party hereto nor any member of its Group shall have any Liability to the other party’s Group if any Information is destroyed after reasonable best efforts by the Person from whom Information is requested, to comply with the provisions of Section 6.3.

 

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Section 14.2 Expenses. Except with respect to the Shared Transaction Liabilities and as otherwise expressly set forth in any Ancillary Agreement, all fees, costs and expenses incurred in connection with the preparation, execution, delivery and implementation of this Agreement and the Ancillary Agreements, and the consummation of the transactions contemplated hereby and thereby, shall be borne by SHLD.

Section 14.3 Counterparts. This Agreement may be executed and delivered (including by facsimile transmission) in counterparts, and by the different parties hereto in separate counterparts, each of which when executed shall be deemed to be an original, but all of which taken together shall constitute one and the same agreement.

Section 14.4 Notices. All notices, requests, claims, demands and other communications hereunder shall be in writing and shall be given or made (and shall be deemed to have been duly given or made upon receipt) by delivery in person, by an internationally recognized overnight courier service, by facsimile or email (with written confirmation of receipt), or by registered or certified mail (postage prepaid, return receipt requested) to the respective parties hereto at the following addresses (or at such other address for a party as shall be specified in a notice given in accordance with this Section 14.4):

If to SHLD, to:

Sears Holdings Corporation

3333 Beverly Road

Hoffman Estates, Illinois 60179

Attn.: General Counsel

Facsimile: (847) 286-2471

Email: Dane.Drobny@searshc.com

If to SHO, to:

Sears Hometown and Outlet Stores, Inc.

3333 Beverly Road

Hoffman Estates, Illinois 60179

Attn.: General Counsel

Facsimile: (847) 286-0266

Email: Charles.Hansen@searshc.com

Section 14.5 Public Announcements. Following the Rights Closing Effective Time, the parties hereto shall be permitted to make, or cause to be made, any press release or public announcement in respect of this Agreement or the transactions

 

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contemplated by this Agreement or otherwise communicate with any news media unless otherwise prohibited by Law or applicable stock exchange regulation or the provisions of this Agreement or any Ancillary Agreement; provided, that the parties hereto shall consult with each other prior to issuing, and shall, subject to the requirements of Section 6.5, provide the other party the opportunity to review and comment upon, press releases and other public statements in connection with the Business Separation, the Rights Offering or any of the other transactions contemplated hereby or by any Ancillary Agreement and prior to making any filings with any Governmental Authority or national securities exchange with respect thereto.

Section 14.6 Severability. If any term or other provision of this Agreement is invalid, illegal or incapable of being enforced by any Law or public policy, all other terms and provisions of this Agreement shall nevertheless remain in full force and effect so long as the economic or legal substance of the transactions contemplated by this Agreement is not affected in any manner materially adverse to either party hereto. Upon such determination that any term or other provision is invalid, illegal or incapable of being enforced, the parties hereto shall negotiate in good faith to modify this Agreement so as to effect the original intent of the parties as closely as possible in a mutually acceptable manner in order that the transactions contemplated by this Agreement are consummated as originally contemplated to the greatest extent possible.

Section 14.7 Entire Agreement. This Agreement and the Ancillary Agreements, including the exhibits and schedules thereto and together with all the agreements contemplated hereby and thereby (including the Implementation Documents), constitute the entire agreement of the parties hereto with respect to the subject matter hereof and thereof and supersede all prior agreements and undertakings, both written and oral, between the parties hereto with respect to the subject matter hereof and thereof.

Section 14.8 Assignment. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns. Except as otherwise provided for in this Agreement, this Agreement shall not be assignable, in whole or in part, directly or indirectly, by any party hereto without the prior written consent of the other party, and any attempt to assign any rights or obligations arising under this Agreement without such consent shall be void. Notwithstanding the foregoing, a party hereto may assign this Agreement in connection with a merger transaction in which such party is not the surviving entity or the sale by such party of all or substantially all of its Assets; provided, that the surviving entity of such merger or the transferee of such Assets shall agree in writing, reasonably satisfactory to the other party, to be bound by the terms of this Agreement as if named as a party hereto.

Section 14.9 Third-Party Beneficiaries. Except for the indemnification rights under this Agreement of any SHLD Indemnitee or SHO Indemnitee in their respective capacities as such, (a) the provisions of this Agreement are solely for the benefit of the parties hereto and are not intended to confer upon any Person except the parties hereto

 

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any rights or remedies hereunder and (b) there are no third-party beneficiaries of this Agreement and this Agreement shall not provide any other Person with any remedy, claim, liability, reimbursement, cause of action or other right in excess of those existing without reference to this Agreement.

Section 14.10 Governing Law; Jurisdiction.

(a) This Agreement shall be governed by, and construed in accordance with, the laws of the State of Illinois, without giving effect to the conflicts of law principles thereof. This Agreement will not be subject to any of the provisions of the United Nations Convention on Contracts for the International Sale of Goods.

(b) Each of the parties submits to the exclusive jurisdiction of all Illinois state courts and federal courts of the United States of America sitting in Cook County, Illinois, and all appellate courts to each thereof, in all actions and proceedings arising out of or relating to this Agreement or the transactions contemplated hereby or for recognition or enforcement of all judgments relating thereto, and each of the parties (A) will commence all such actions and proceedings only in such courts, (B) will cause all claims in respect of all such actions and proceedings to be heard and determined in such Illinois state court or, to the extent permitted by law, in such federal court, (C) waives, to the fullest extent it may legally and effectively do so, all objections that it may now or hereafter have to the laying of venue of all such actions and proceedings in any such Illinois state or federal court, and (D) waives, to the fullest extent permitted by law, the defense of an inconvenient forum to the maintenance of such actions and proceedings in all such Illinois state and federal courts. A final judgment in any such action or proceeding will be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by Law. Each party irrevocably consents to service of process in the manner provided for notices in Section 14.4. Nothing in this Agreement will affect the right of any party to serve process in any other manner permitted by applicable Law.

Section 14.11 Waiver of Jury Trial. EACH OF THE PARTIES HERETO HEREBY WAIVES TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY WITH RESPECT TO ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT. EACH OF THE PARTIES HERETO HEREBY (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF THE OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT, AS APPLICABLE, BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 14.11.

 

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Section 14.12 Headings. The descriptive headings contained in this Agreement are included for convenience of reference only and shall not affect in any way the meaning or interpretation of this Agreement.

Section 14.13 Interpretation. Words in the singular shall be held to include the plural and vice versa and words of one gender shall be held to include the other gender as the context requires. The terms “hereof,” “herein” and “herewith” and words of similar import, unless otherwise stated, shall be construed to refer to this Agreement as a whole (including all of the schedules, exhibits and appendices hereto) and not to any particular provision of this Agreement. Article, Section, Exhibit, and Schedule references are to the articles, sections, exhibits, and schedules of or to this Agreement unless otherwise specified. Any reference herein to this Agreement, unless otherwise stated, shall be construed to refer to this Agreement as amended, supplemented or otherwise modified from time to time in accordance with the terms hereof. The word “including” and words of similar import when used in this Agreement shall mean “including, without limitation,” unless the context otherwise requires or unless otherwise specified. The word “or” shall not be exclusive.

Section 14.14 Specific Performance. In the event of any actual or threatened default in, or breach of, any of the terms, conditions and provisions of this Agreement, the affected party shall have the right to specific performance and injunctive or other equitable relief of its rights under this Agreement, in addition to any and all other rights and remedies at law or in equity, and all such rights and remedies shall be cumulative. The other Party shall not oppose the granting of such relief. The parties hereto agree that the remedies at law for any breach or threatened breach hereof, including monetary damages, are inadequate compensation for any loss and that any defense in any action for specific performance that a remedy at law would be adequate is waived. Any requirements for the securing or posting of any bond with such remedy are waived.

Section 14.15 Payment Terms.

(a) Except as expressly provided to the contrary in this Agreement or in any Ancillary Agreement, any amount to be paid or reimbursed by one party to the other under this Agreement shall be paid or reimbursed hereunder within ten (10) days after presentation of an invoice or a written demand therefor and setting forth, or accompanied by, reasonable documentation or other reasonable explanation supporting such amount.

(b) Except as expressly provided to the contrary in this Agreement or in any Ancillary Agreement, any amount not paid when due pursuant to this Agreement (and any amount billed or otherwise invoiced or demanded and properly payable that is not paid within ten (10) days of such bill, invoice or other demand) shall bear interest at a

 

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rate per annum equal to the prime rate plus 2% (or the maximum legal rate, whichever is lower), calculated for the actual number of days elapsed, accrued from the date on which such payment was due up to the date of the actual receipt of payment.

Section 14.16 Survival of Covenants. Except as expressly set forth in this Agreement, the covenants, representations and warranties contained in this Agreement, and the Liabilities for the breach of any obligations contained herein, shall survive the Rights Closing Effective Time and shall remain in full force and effect.

Section 14.17 Waiver. Either party hereto to this Agreement may (i) extend the time for the performance of any of the obligations or other acts of the other party and (ii) waive compliance with any of the agreements of the other party or conditions to such party’s obligations contained herein. Any such extension or waiver shall be valid only if set forth in an instrument in writing signed by the party against whom it is sought to enforce such extension or waiver. Any waiver of any term or condition shall not be construed as a waiver of any subsequent breach or a subsequent waiver of the same term or condition, or a waiver of any other term or condition of this Agreement. The failure of either party hereto to assert any of its rights hereunder shall not constitute a waiver of any of such rights.

Section 14.18 Condition Precedent to the Effectiveness of this Agreement. This Agreement will not become effective until it has been approved by the Audit Committee of the Board of Directors of SHLD.

Section 14.19 Counterparts; Facsimile Signatures. This Agreement and any amendment hereto may be executed in multiple counterparts, each of which shall be deemed to be an original, but all of which shall constitute one and the same agreement. Delivery of an executed counterpart of a signature page to this Agreement by facsimile or by email delivery of scanned pages (e.g., “.pdf” format data files) shall be effective as delivery of a manually executed counterpart to this Agreement.

[Signature page follows]

 

52


IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the date first written above by their respective officers thereunto duly authorized.

 

SEARS HOLDINGS CORPORATION
By:  

 

  Name: Dane Drobny
  Title:   Senior Vice President, General
              Counsel & Corporate Secretary
SEARS HOMETOWN AND OUTLET STORES, INC.
By:  

 

 

Name: W. Bruce Johnson

Title:    Chief Executive Officer and President

 

53


Schedule 1.1(a)

HOMETOWN LOCATIONS

 

Store
Number
   Address    Town    State    Zip
1444    56 Westport Ave    Norwalk    CT    06851
1483    360 N. Bedford Rd.    Mt. Kisco    NY    10549
1801    2156 Michigan Ave    Arnold    MO    63010
1806    3871 Mexico Rd.    St. Charles    MO    63303
1860    1758 Douglas Road    Oswego    IL    60543
1861    106 Hansen Blvd    N. Aurora    IL    60542
2194    13600 Baltimore Ave    Laurell    MD    20707
2552    6000 Greenbelt Road    Greenbelt    MD    20770
2566    10757 Ulmerton Rd.    Largo    FL    33778
2925    14444 N. Dale Mabry Hwy    Tampa (Carrollwood)    FL    33618
5044    10 Pitkin Road    Vernon/Rockville    CT    06066
4718    4036 Grand Ave.    Chino    CA    91710
5087    1387 Kingwood Drive    Kingwood    TX    77339
5113    7740 City Line Avenue    Philadelphia    PA    19151
5133    220-05 Hillside Avenue    Queens    NY    11427


Store
Number
   Address    Town    State    Zip
5153    367-389 Sunrise Highway    Patchogue    NY    11772
5154    852 N. Colony    Wallingford    CT    06492
5157    6169 US Route 6    Portage    IN    46368
5173    985 Bloomfield Ave., Ste.2    West Caldwell    NJ    07006
5291    1150 U.S. Highway 41    Schererville    IN    46375
5301    1800 W. Henderson Rd.    Columbus    OH    43220
5340    11728 Fishers Crossing Drive    Fishers    IN    46038
5344    225 N. Route 73    West Berlin    NJ    08091
5351    7010 W. 159TH St.    Orland Park    IL    60462
5360    4849 W. 111th Street    Alsip    IL    60803
5394    450 S. Washington Street    Bergenfield    NJ    07621
5401    285 N. Sunbury Rd.    Westerville    OH    43081
5471    N 96 W 18650 Country Line Rd.    Germantown    WI    53022
5481    2575 Hilliard-Rome Road    Columbus    OH    43026
5484    705 Bridgeport Avenue    Shelton    CT    06484
3085    2518 Sycamore Road    Dekalb    IL    60115

 

2


Store
Number
   Address    Town    State    Zip
5502    3990 US 22 & 3    Loveland    OH    45140
5523    5137 Nesconset Highway    Port Jefferson Station    NY    11776
5564    1075 Hill Road North    Pickerington    OH    43147
5702    200 N. Weber Road    Bolingbrook    IL    60440
5772    832 South Rand Road    Lake Zurich    IL    60047
5814    1235 Farmington Ave. Rte. 6    Bristol    CT    06010
5873    1764 Sheridan Drive    Tonawanda    NY    14223
5904    1032 Oneida Plaza Drive    Oneida    NY    13421
5914    1019 Montauk Highway    Shirley    NY    11967
5923    229 Plaza Blvd.    Morrisville    PA    19067
5934    700 Kenhorst Plaza    Reading    PA    19607
5954    29 North Ridge Drive    North Windham    CT    06256
5031    5425 East Thompson Road    Indianapolis    IN    46237
5041    1270 Strongbow    Valparaiso    IN    46383
5050    925 Ogden Ave.    Downers Grove    IL    60515
5034    265 Main Street (Rt.28)    N. Reading    MA    01864

 

3


Store
Number
   Address    Town    State    Zip
7497    300 Center Drive    Superior    CO    80027
7569    66 Hiram Douglasville Highway    Hiram    GA    30141
7674    2716 E. Main St.    St. Charles    IL    60174
7693    1475 Stafford Market Place    Stafford    VA    22556
7703    1145 High ridge Rd.    Stamford    CT    06905
7860    203 Randall Rd.    S. Elgin    IL    60177
5002    10400 E. US Hwy. 36 Ste 600    Avon    IN    46123
5003    2214 W. Gennesse Street    Westvale    NY    13219
5062    2000 East Dorothy Lane    Kettering    OH    45420
5073    5847 S. Transit Road    Lockport    NY    14094
5080    4655 Dixie Hwy.    Fairfield    OH    45014
5104    585 Portion Road    Lake Ronkonkoma    NY    11779
3005    1905 Scenic Highway    Snellville    GA    30078
3015    2569 Peachtree Parkway, Suite 270    Cumming (Suwanee)    GA    30041
9201    2150 N. Josey Lane    Carrollton    TX    75006
3004    1674 Marketplace Blvd.    Cumming    GA    30041

 

4


Store
Number
   Address    Town    State    Zip
3034    2239 Georgia Highway 20    Conyers    GA    30013
9291    2750 Heritage Drive    Delafield    WI    53018
9292    10954 N. Port Washington Rd.    Mequon    WI    53092
3096    798 Lawrenceville-Suwanee Rd.    Lawrenceville    GA    30043
3116    1563 Highway 20 W    McDonough    GA    30253
1836    439 E. Nelson St.    Lexington    VA    24450
1866    1010 E Loop 304    Crockett    TX    75835
2562    764 E. 15th Street    Yazoo City    MS    39194
2579    2582 S. Santiam Hwy    Lebanon    OR    97355
3054    60 Downeast Hwy    Ellsworth    ME    04605
3099    1325 E. Jackson Street    Macomb    IL    61455
3157    1721 Paragould Plaza    Paragould    AR    72450
3334    1515 N.E. 3rd, Suite B    Prineville    OR    97754
3346    19588 Greeno Road    Fairhope    AL    36532
3500    1997 E. Platte Ave    Fort Morgan    CO    80701
3684    2417 Tongass Ave    Ketchikan    AK    99901

 

5


Store
Number
   Address    Town    State    Zip
5231    350 Eagle Drive    Rochelle    IL    61068
3061    701 South Newport Road    Pontiac    IL    61764
3202    1013 Old Hwy 52    Moncks Corner    SC    29461
3229    2910 S. Walton Blvd.    Bentonville    AR    72712
3339    1046 Paseo Del Pueblo    Taos    NM    87571
3350    West Gate Shopping Center    Tiffin    OH    44883
3394    1521 Postal Rd.    Chester/Kent Island    MD    21619
3638    57840 29 Palms Highway    Yucca Valley    CA    92284
3661    8991 Ohio River Rd.    Wheelersburg    OH    45694
3678    1361 Rocking “W” Drive    Bishop    CA    93514
3691    513 Huck Finn Shopping Center    Hannibal    MO    63401
7658    2445 NW Kings Blvd.    Corvallis    OR    97330
7816    200 Able Drive, Suite 9    Dayton    TN    37321
3945    1602B East Shotwell Street    Bainbridge    GA    39819
9248    Hale Hana Center    Kailua-Kona    HI    96740
5343    4480 Atlantic Avenue    Long Beach    CA    90807

 

6


Store
Number
   Address    Town    State    Zip
5359    6465 Ming Avenue    Bakersfield    CA    93309
5606    1151 Anderson Drive    San Rafael    CA    94901
5609    1390 North McDowell Boulevard    Petaluma    CA    94954
5612    1450 First Street    Livermore    CA    94550
5615    1015 West Hammer Lane    Stockton    CA    95209
5626    5445 Blackstone Avenue    Fresno    CA    93710
5628    800 Playa Avenue    Sand City    CA    93955
5633    5130 Mowry Avenue    Fremont    CA    94538
5635    125 North Milpitas Boulevard    Milpitas    CA    95035
5636    900 El Camino Real    Millbrae    CA    94030
5637    2110 Middlefield Road    Redwood City    CA    94063
5642    2245 Gellert Boulevard    South San Francisco    CA    94080
5643    2555 Charleston Road    Mountain View    CA    94043
5645    720 W. San Carlos St.    San Jose    CA    95126
5648    777 Sunnyvale-Saratoga Rd.    Sunnyvale    CA    94087
5650    1751 East Capitol Expressway    San Jose    CA    95121

 

7


Store
Number
   Address    Town    State    Zip
5654    5365 Prospect Road    San Jose    CA    95129
5656    3425 East Colorado Boulevard    Pasadena    CA    91107
5657    452 Fair Oaks Avenue    South Pasadena    CA    91030
5658    641 North Victory Boulevard    Burbank    CA    91502
5663    3100 Foothill Boulevard    La Crescenta    CA    91214
5674    1800 Oakdale Road    Modesto    CA    95355
5681    1536 East Champlain Drive    Fresno    CA    93720
5682    220 Peabody Road    Vacaville    CA    95687
5686    1751 Eastshore Boulevard    El Cerrito    CA    94530
3782    9109 Mendenhall Mall Road    Juneau    AK    99801
3650    621 Boll Weevil Circle    Enterprise    AL    36330
3704    1502 Hwy 80 East    Demopolis    AL    36732
3992    1023 Douglas Ave.    Brewton    AL    36426
3105    204 West Bypass    Andalusia    AL    36420
3646    1908 2nd Ave. E.    Oneonta    AL    35121
3695    2918 20th Ave    Valley    AL    36854

 

8


Store
Number
   Address    Town    State    Zip
3852    4435 N. College Ave    Jackson    AL    36545
3951    1234 North Eufaula Avenue    Eufaula    AL    36027
3675    690 McQueen Smith Rd. So.    Prattville    AL    36066
3356    118 Butler Square    Greenville    AL    36037
3135    5850 US Highway 431    Albertville    AL    35950
3145    724 Parkland S/C North    Jasper    AL    35501
3566    823 Highway 72 West    Athens    AL    35611
3721    3052 Hwy # 5 North    Thomasville    AL    36784
3075    1726 A Cherokee Ave SW    Cullman    AL    35055
3393    103 U.S. Hwy 231 No.    Troy    AL    36081
5770    3798 S. McKenzie Street    Foley    AL    36535
3911    P.O. Box 11750    Jackson    WY    83002
3127    1320 North Main Street    Harrison    AR    72601
3147    1029 Highway 62 East    Mountain Home    AR    72653
3207    908 South Mena Street    Mena    AR    71953
3709    2607 Hwy 67 South    Pocahontas    AR    72455

 

9


Store
Number
   Address    Town    State    Zip
3007    749 Wal-Mart Access Road    Monticello    AR    71655
3217    201 Skyline Drive    Conway    AR    72032
2736    107 Meadow View Drive    Mountain View    AR    72560
3087    150 Garden Oaks Drive    Camden    AR    71701
3587    1110 Ferguson Drive    Benton    AR    72015
3794    475 Hwy 62/412    Ash Flat    AR    72513
3797    1517 C. East Main    Magnolia    AR    71753
3854    1301 North Hervey Street    Hope    AR    71801
5270    23 South Park Shopping Center    Nashville    AR    71852
3057    2395 Harrison St.    Batesville    AR    72501
3097    605 West Main Street    Clarksville    AR    72830
3117    828 North Washington    Forrest City    AR    72335
3777    209 Shopping Way    West Memphis    AR    72301
3873    1010 Hwy 25 B North    Heber Springs    AR    72543
3880    702 Hwy 64 E    Wynne    AR    72396
3187    2310 E. Race Avenue    Searcy    AR    72143

 

10


Store
Number
   Address    Town    State    Zip
7726    4905 Hwy 7 North    Hot Springs Village    AR    71909
3926    1005 Highway #49 West    West Helena    AR    72390
1841    13212 N. Saguaro Blvd.    Fountain Hills    AZ    85268
9219    49693 Harrison Street    Coachella    CA    92236
3089    3115 Stockton Hill Road    Kingman    AZ    86401
3017    113 E. Hwy 260    Payson    AZ    85541
3037    1427 East Highway 89-A    Cottonwood    AZ    86326
3656    115 W. Esperanza    Green Valley    AZ    85614
3823    1355 E. Florence Blvd.    Casa Grande    AZ    85122
3618    1009 North H Street    Lompoc    CA    93436
3748    580 S. Jaye Street    Porterville    CA    93257
3749    3352 Floral Avenue #103    Selma    CA    93662
7728    270 E. Hwy 264, Unit A    Buellton    CA    93427
2169    12047 Donner Pass Road    Truckee    CA    96161
3039    201 S. Gateway Drive    Madera    CA    93637
3079    621 North Golden State Blvd.    Turlock    CA    95380

 

11


Store
Number
   Address    Town    State    Zip
3119    570 South Main    Red Bluff    CA    96080
3437    860 North Yosemite Ave.    Oakdale    CA    95361
3999    220 Center St.    Taft    CA    93268
3169    384 Placerville Drive    Placerville    CA    95667
3179    120 North China Lake Blvd.    Ridgecrest    CA    93555
6911    8209 California City Blvd.    California City    CA    93505
7609    3000 Green Valley    Cameron Park    CA    95682
3078    310 Colorado    Lajunta    CO    81050
3188    130 Broadway    Sterling    CO    80751
3600    1291 Blue River Parkway    Silverthorne    CO    80498
3642    1 E. Main Street    Cortez    CO    81321
3198    2851 Riverside Plaza    Steamboat Springs    CO    80487
3168    1445 Hawk Parkway    Montrose    CO    81401
3208    800 South Camino Del Rio    Durango    CO    81301
3141    1900 Airport Road    Rifle    CO    81650
3858    2128 Freedom Rd.    Trinidad    CO    81082

 

12


Store
Number
   Address    Town    State    Zip
7218    1000 North Main Street    Gunnison    CO    81230
5194    199 Old Hartford Rd.    Colchester    CT    06415
3384    380 New Hartford Road    Barkhamsted    CT    06063
5193    507 Danbury Rd.    New Milford    CT    06776
4763    1007 Pulaski Hwy    Havre de Grace    MD    21078
6979    656A North DuPont Hwy    Milford    DE    19963
1845    3207 S US Hwy 1    Ft. Pierce    FL    34982
3745    1441 South Dixie Freeway    New Smyrna Beach    FL    32168
3175    904 S. State Rd. 19    Palatka    FL    32177
3195    2121 US 1 South, Space 10    Saint Augustine    FL    32086
3775    4888 W. Palm Coast Parkway    Palm Coast    FL    32137
7070    2708 Santa Barbara Blvd.    Cape Coral    FL    33914
3725    1133 Industrial Drive    Crestview    FL    32539
7285    4181 B South Tamiami Trail    Venice    FL    34293
3975    455 South Indiana Avenue    Englewood    FL    34223
9916    731 E. Hwy 50    Clermont    FL    34711

 

13


Store
Number
   Address    Town    State    Zip
7720    411 W. Madison Street    Starke    FL    32091
7378    11223 North Williams St.    Dunnellon    FL    34432
5221    2505 Okeechobee Blvd.    West Palm Beach    FL    33409
3215    1118A S. 14th Street    Fernandina Beach    FL    32034
5162    28340 Trails Edge Blvd.    Bonita Springs    FL    34134
3696    124 Rodgers Blvd.    Chiefland    FL    32626
1855    131 W. Main Street    Wauchula    FL    33873
1912    110 NE Second Place    Cape Coral    FL    33909
3150    16750 South US Hwy 441    Summerfield    FL    34491
3211    4747 Hwy 90 East    Marianna    FL    32446
5321    7422 Gall Blvd.    Zephyrhills    FL    33541
3245    792 East John Sims Pky    Niceville    FL    32578
3815    1660 Hwy 41 North    Inverness    FL    34450
7709    4563 Bell Lane    Milton    FL    32571
3977    406 E. Main St.    Dahlonega    GA    30533
3255    215 South Grant Street    Fitzgerald    GA    31750

 

14


Store
Number
   Address    Town    State    Zip
3307    40 Greenway Court    Newnan    GA    30265
3316    2707 East First Street    Vidalia    GA    30474
3955    516 South Peterson    Douglas    GA    31533
3265    103 B General Screven Way    Hinesville    GA    31313
3515    1202 South Park Street    Carrollton    GA    30117
3798    306 Riddleville Rd.    Sandersville    GA    31082
3896    60 Sears Way    Blairsville    GA    30512
3986    15082 U.S. 19 N    Thomasville    GA    31757
3405    1503 Hwy 16 West    Griffin    GA    30223
3295    1831 N. Columbia St.    Milledgeville    GA    31061
3305    977 South 1st Street    Jesup    GA    31545
2706    832 Dacula Road    Dacula    GA    30019
4855    2476 Memorial Drive    Waycross    GA    31503
1846    1124 Greensboro Rd. N.E.    Eatonton    GA    31024
3321    110 Bluffs Parkway    Canton    GA    30114
3385    718 Northside Drive East    Statesboro    GA    30458

 

15


Store
Number
   Address    Town    State    Zip
3635    67 Fowler Street    East Ellijay    GA    30539
3856    200 Golden Circle    Calhoun    GA    30701
3365    28 Hawthorn Ln.    Saint Marys    GA    31558
3655    40099 Highway 441    Commerce    GA    30529
3713    528 South Main Street    Swainsboro    GA    30401
3845    500 Great Oaks Drive    Monroe    GA    30655
7343    305 West Patton Street    LaFayette    GA    30728
7476    877 Congo Connection    Eastman    GA    31023
7559    1328 Buford Hwy, Ste 110    Buford    GA    30518
3925    2417 S Main Street    Moultrie    GA    31768
3971    663 Main Street    Thomson    GA    30824
7371    701 Seneca Street    Storm Lake    IA    50588
2941    1001 Short Street    Decorah    IA    52101
3200    1108 Heires Avenue    Carroll    IA    51401
4899    1301 W. Burlington Ave.    Fairfield    IA    52556
9632    1815 Lincoln Way    Clinton    IA    52732

 

16


Store
Number
   Address    Town    State    Zip
3502    3533 Main Street    Keokuk    IA    52632
4663    300 West Hickman Rd.    Waukee    IA    50263
5186    1676 Sycamore Street    Iowa City    IA    52240
3230    2390 Park Street    Sheldon    IA    51201
3268    507 Iowa Avenue West    Marshalltown    IA    50158
7902    1607 E. 7th Street    Atlantic    IA    50022
9605    2020 16th Ave. SW    Cedar Rapids    IA    52404
3121    3309 Caldwell Blvd.    Nampa    ID    83651
3151    2338 Overland Ave.    Burley    ID    83318
3290    664 North 2nd East    Rexburg    ID    83440
3379    1480 West Park Plaza    Ontario    OR    97914
2572    1679 S. State Street    Jerseyville    IL    62052
3002    1844 Southwest Avenue    Freeport    IL    61032
3820    1349 Jamie Lane    Waterloo    IL    62298
3671    1350 E. Mall Drive    Carbondale    IL    62901
3681    601 N. Commercial    Harrisburg    IL    62946

 

17


Store
Number
   Address    Town    State    Zip
5272    410 Southwind Plaza    Mt. Vernon    IN    47620
3022    1306 Thelma Keller Avenue    Effingham    IL    62401
3282    117 S. Center Street    Plano    IL    60545
3304    1411 W. Main    Fairfield    IL    62837
3970    19 Litchfield Plaza Shopping Ctr.    Litchfield    IL    62056
7960    313 Mattes Avenue    Vandalia    IL    62471
9607    425 Southtowne Drive    Belvidere    IL    61008
5220    4035 S. Michigan Street    South Bend    IN    46614
3152    419 Clifty Dr.    Madison    IN    47250
1832    561 West Connexion Way, Suite 1    Columbia City    IN    46725
1852    27A Putnam Plaza    Greencastle    IN    46135
3652    510 Saraina Rd.    Shelbyville    IN    46176
1870    352 S. Willowbrook Road    Coldwater    MI    49036
3760    1221 North Wayne    Angola    IN    46703
3212    1815 North 6th Street    Vincennes    IN    47591
1842    247 E. Walnut Street    North Vernon    IN    47265

 

18


Store
Number
   Address    Town    State    Zip
3081    2940 Miller Drive    Plymouth    IN    46563
3101    102 Sycamore Estates    Aurora    IN    47001
3112    105 West 24th Street    Connersville    IN    47331
3281    1016 W 7th Street    Auburn    IN    46706
3482    2816 Frontage Road    Warsaw    IN    46580
3612    1760 U.S. 231 South    Crawfordsville    IN    47933
3056    1607 W. Broadway    Princeton    IN    47670
3120    1480 Old Highway 135 NE    Corydon    IN    47112
3243    2236 North Lebanon St.    Lebanon    IN    46052
3266    3005 South 14th Street    New Castle    IN    47362
3834    2943 John Williams Blvd.    Bedford    IN    47421
3320    221 Apache Drive    Rochester    IN    46975
7433    1244 W. Main Street    Greenfield    IN    46140
7630    1866 Northwood Plaza Drive    Franklin    IN    46131
7742    17160 Dragonfly Drive    Noblesville    IN    46060
3318    2604 Main Street    Parsons    KS    67357

 

19


Store
Number
   Address    Town    State    Zip
3581    102 East Main Street    Chanute    KS    66720
3161    1435 Cleveland Ave    Marinette    WI    54143
3231    322 North Lincoln Road    Escanaba    MI    49829
3326    101 N. Washington Street    Junction City    KS    66441
3330    2515 - 10th Street    Great Bend    KS    67530
3732    300 South Main    Pratt    KS    67124
3122    130 North Main    El Dorado    KS    67042
3218    220 S. Main Street    Ottawa    KS    66067
3257    2601 Central    Dodge City    KS    67801
3351    505 N. Poplar    Newton    KS    67114
3560    311 North Main    McPherson    KS    67460
3781    1937 South Range Ave    Colby    KS    67701
7638    7017 Alexandria Pike    Alexandria    KY    41001
3294    830 Eastern Bypass    Richmond    KY    40475
3849    196 Frankfort Rd.    Shelbyville    KY    40065
3076    845B South Main Street    London    KY    40741

 

20


Store
Number
   Address    Town    State    Zip
3126    804 South 4th Street    Danville    KY    40422
3864    1000 E. Cumberland Gap Parkway, B-23867    Corbin    KY    40701
3874    1500 N. Main St.    Monticello    KY    42633
3933    624 Jefferson Ave    Paintsville    KY    41240
5232    401 Outlet Center Dr.    Georgetown    KY    40324
3544    2412 Fort Campbell Blvd.    Hopkinsville    KY    42240
3787    234 W. Main St.    Camden    TN    38320
2726    1640 Second Street    Henderson    KY    42420
3173    1370 Flemingsburg Rd.    Morehead    KY    40351
3847    3411 Hwy 119 North    Mayking    KY    41837
3146    170 Town Mountain Road    Pikeville    KY    41501
3343    168 Village Center Road    Harlan    KY    40831
3555    110 Madison Square Ave.    Madisonville    KY    42431
3575    50 Tucker Drive    Maysville    KY    41056
3829    850 Hwy 15 South    Jackson    KY    41339
7727    651 Downing Pines Road    West Monroe    LA    71292

 

21


Store
Number
   Address    Town    State    Zip
3843    1226 Elton Rd.    Jennings    LA    70546
3277    837 US Hwy 90    Bayou Vista    LA    70380
3287    4278 University Parkway    Natchitoches    LA    71457
9209    252 Main Street    Baker    LA    70714
3526    340 East Laurel    Eunice    LA    70535
3577    1339 North Pine    Deridder    LA    70634
5215    161 Richland Place    Monroe    LA    71203
3047    105 Carrollwood Avenue    Laplace    LA    70068
3422    1701 Commerce St.    Ruston    LA    71270
3741    7300 Read Blvd.    New Orleans    LA    70127
7123    9356 S. Mansfield Rd.    Shreveport    LA    71118
3963    901 Creswell Lane    Opelousas    LA    70570
3978    206 Elizabeth St.    Many    LA    71449
7954    12715 Highway 90    Luling    LA    70070
7545    146 Eastern Ave.    Gloucester    MA    01930
3609    124 West St.    Ware    MA    01082

 

22


Store
Number
   Address    Town    State    Zip
5192    136 Route 6A, Unit B6    Orleans    MA    02653
6966    189 Russell Street    Hadley    MA    01035
9698    1167 Providence Rd.    Whitinsville    MA    01588
3743    23415 Three Notch Road    California    MD    20619
3323    255 Solomons Island Road    Prince Frederick    MD    20678
7813    5360 Lincoln Hwy    Gap    PA    17527
1843    213 West Broadway    Lincoln    ME    04457
3003    771 Roosevelt Trail    North Windham    ME    04062
3163    192 College Ave.    Waterville    ME    04901
3364    632 Wilton Rd.    Farmington    ME    04938
3574    420 Alfred Street    Biddeford    ME    04005
3863    90 Moosehead Trail    Newport    ME    04953
3644    38 Starrett Drive    Belfast    ME    04915
3232    1560 US 31 South    Manistee    MI    49660
3582    1650 Wright Ave.    Alma    MI    48801
2281    982 South Main Street    Cheboygan    MI    49721

 

23


Store
Number
   Address    Town    State    Zip
3280    215 West Lake Street    Tawas City    MI    48763
3432    2992 Carleton Road    Hillsdale    MI    49242
3718    1840 M 119    Petoskey    MI    49770
3140    2711 - I 75 Business Loop    West Branch    MI    48661
3170    1150 South Otsego    Gaylord    MI    49735
3180    1140 West Three Mile Road    Sault Ste Marie    MI    49783
3271    Birchwood Mall    Kingsford    MI    49802
3850    136 Thunder Bay Shopping Center    Alpena    MI    49707
4789    7374 Highland Road    Waterford    MI    48327
3261    1356 Imlay City Rd.    Lapeer    MI    48446
3341    301 S. Maplewood St.    Greenville    MI    48838
3610    56153 M51 South    Dowagiac    MI    49047
3980    201 N. Riverside Ave.    St. Clair    MI    48079
5212    125 S. Elk Street    Sandusky    MI    48471
3241    219 North Mitchell    Cadillac    MI    49601
3251    400 US Hwy 41    Negaunee    MI    49866

 

24


Store
Number
   Address    Town    State    Zip
3630    1152 Cleaver Road    Caro    MI    48723
3801    205 South Dexter    Ionia    MI    48846
3833    710 Perry Avenue    Big Rapids    MI    49307
7290    1321 E. Colby Street    Whitehall    MI    49461
7370    4255 Alpine Ave.    Comstock Park    MI    49321
9890    211 N US Hwy 131    Three Rivers    MI    49093
3210    5465 Mt. Iron Dr.    Virginia    MN    55792
3471    211 West Lincoln Avenue    Fergus Falls    MN    56537
3370    1315 Hwy 10 West    Detroit Lakes    MN    56501
3702    1301 18th Ave. NW    Austin    MN    55912
3802    24135 Greenway Road    Forest Lake    MN    55025
4463    715 Main Street    Osage    IA    50461
3401    6380 W. Frontage Road    Medford    MN    55049
3790    500 East Main St.    Luverne    MN    56156
7662    3218 Hwy 10 East    Moorhead    MN    56560
1862    7955 Hwy 55    Rockford    MN    55373

 

25


Store
Number
   Address    Town    State    Zip
3703    450 South State Street    Fairmont    MN    56031
3453    1950 2nd Avenue SE    Cambridge    MN    55008
3291    303 Main Avenue North    Thief River Falls    MN    56701
3440    1605 S. Broadway    New Ulm    MN    56073
3738    2722 Bridge Ave    Albert Lea    MN    56007
3162    2819 Highway 29 South    Alexandria    MN    56308
3411    1239 Pokegama Avenue    Grand Rapids    MN    55744
3441    15910 Edgewood Drive    Baxter    MN    56425
3632    500 3rd Street West    International Falls    MN    56649
3761    330 West Second St.    Winona    MN    55987
9982    3420 150th St W    Rosemount    MN    55068
9270    9034 Overland Plaza    Overland    MO    63114
5303    4820 S. 4th Street    Leavenworth    KS    66048
3762    3797 Hwy 54    Osage Beach    MO    65065
5191    1147 E. North Ave.    Belton    MO    64012
3680    490 South Jefferson Avenue    Lebanon    MO    65536

 

26


Store
Number
   Address    Town    State    Zip
2991    1759 James River Road    Ozark    MO    65721
3342    703 East Young Street    Warrensburg    MO    64093
3010    19014 Business 13 North    Branson West    MO    65737
3051    1612 Elliott Avenue    Aurora    MO    65605
3372    1048 Washington Square    Washington    MO    63090
3442    2988 South Clark    Mexico    MO    65265
6908    155 Twin City Mall    Crystal City    MO    63019
3851    206 Progress St.    Perryville    MO    63775
7782    1315 South Main Street Suite A    Maryville    MO    64468
3012    1206 N. Douglas    Malden    MO    63863
3362    738 Market Street    Farmington    MO    63640
3400    111 E. Boston    Brookfield    MO    64628
3552    1101 E. Scenic Rivers Blvd.    Salem    MO    65560
3889    2101 North Walnut    Cameron    MO    64429
3072    2216 South Baltimore    Kirksville    MO    63501
3272    1347 Southern Hills    West Plains    MO    65775

 

27


Store
Number
   Address    Town    State    Zip
7514    101A SW Eagle Parkway    Grain Valley    MO    64029
1827    1108 A Mississippi Drive    Waynesboro    MS    39367
1826    381 Highway 51    Ridgeland    MS    39157
2730    813 US Highway 98    Columbia    MS    39429
3377    2480 East I-20    Vicksburg    MS    39180
3626    2200 Sandy Lane    Laurel    MS    39443
4787    5547 I-55 South    Byram    MS    39272
5214    1651 HWY 1 South Suite A    Greenville    MS    38701
3347    522 Third Street    Cleveland    MS    38732
6985    1560-C West Government St.    Brandon    MS    39042
7396    306 East Walnut    Ripley    MS    38663
3357    937 Commerce Avenue    Clarksdale    MS    38614
3565    31 South Sergeant Prentiss Dr. #3    Natchez    MS    39120
3623    622 Hwy 12 E    Starkville    MS    39759
3613    216 Line Avenue    Philadelphia    MS    39350
7614    7501 Goodman Rd.    Olive Branch    MS    38654

 

28


Store
Number
   Address    Town    State    Zip
3579    1753 Hwy 2 West    Havre    MT    59501
3248    1105 Hwy 2 West    Kalispell    MT    59901
3932    1704 N. First Street    Hamilton    MT    59840
1929    124 South Main Street    Livingston    MT    59047
3288    3703 Harrison Ave. #G    Butte    MT    59701
3598    2825 W. Main St.    Bozeman    MT    59718
3929    520 Mineral Ave.    Libby    MT    59923
3226    1002 West Cumberland Street    Dunn    NC    28334
3236    1308 Carolina Avenue    Washington    NC    27889
3246    917 East Main Street    Lincolnton    NC    28092
3426    1155 N. Main Street    Marion    NC    28752
3446    5100 South Croatan Highway    Nags Head    NC    27959
3196    4329 Fayetteville Rd.    Lumberton    NC    28358
3274    352 North Broad Street    Brevard    NC    28712
3276    # 6 Whiteville Plaza    Whiteville    NC    28472
3396    1211 Julian Allsbrook Hwy    Roanoke Rapids    NC    27870

 

29


Store
Number
   Address    Town    State    Zip
3665    1573 Freeway Drive    Reidsville    NC    27320
6863    211 S. Broad Street    Edenton    NC    27932
3894    3138 Martin Luther King Jr. Blvd.    New Bern    NC    28562
1825    8878 US 70 Highway West, Suite 300    Clayton    NC    27520
3065    203 East 1st Street    West Jefferson    NC    28694
3156    1535 Dabney Drive    Henderson    NC    27536
3166    1377 N. Sandhills Boulevard    Aberdeen    NC    28315
3875    1180 Blowing Rock Road, E-6    Boone    NC    28607
3969    1800 Four Seasons Blvd.Suite D-1    Hendersonville    NC    28792
3416    1262 Andrews Road    Murphy    NC    28906
3423    326 South Bickett Boulevard    Louisburg    NC    27549
3424    New Highway 64 West    Lexington    NC    27295
3436    834 Hardee Road    Kinston    NC    28504
3763    5302 S. Main Street    Shallotte    NC    28459
7292    15530 US Hwy 17N    Hampstead    NC    28443
7506    703 Edgewood Road    Wilkesboro    NC    28697

 

30


Store
Number
   Address    Town    State    Zip
3958    11947 South Hwy 226    Spruce Pine    NC    28777
3979    163 Waynesville Plaza    Waynesville    NC    28786
9970    619 N Main Street    Kernersville    NC    27284
3981    822 Dakota Ave    Wahpeton    ND    58075
2569    2308 11th Ave West    Williston    ND    58801
3481    346 Highway 2 West    Devils Lake    ND    58301
3308    1615 Broadway    Scottsbluff    NE    69361
3324    327 Beech Street    Chadron    NE    69337
3557    5804 - 2nd Avenue    Kearney    NE    68845
7502    2440 Cornhusker Rd.    Bellevue    NE    68123
3032    1200 North 6th Street    Beatrice    NE    68310
3011    4300 - 23rd Street    Columbus    NE    68601
3734    2110 Market Lane    Norfolk    NE    68701
3901    206 Westview Plaza    McCook    NE    69001
3050    930 South Burlington    Hastings    NE    68901
3821    310 East 5th Street    North Platte    NE    69101

 

31


Store
Number
   Address    Town    State    Zip
3043    #13 Lilac Mall    Rochester    NH    03867
3273    4 Sears Drive    Rindge    NH    03461
3673    742 Tenney Mountain Hwy    Plymouth    NH    03264
3053    529 Eastman Rd.    Center Conway    NH    03813
3285    1 Batchelder Road    Seabrook    NH    03874
3103    176 Highway 202 & 31    Ringoes    NJ    08551
3143    240 White Horse Pike    Hammonton    NJ    08037
3319    405 E. Navajo    Hobbs    NM    88240
3826    19554 Highway 314    Belen    NM    87002
7667    101 S. White Sands Blvd.    Alamogordo    NM    88310
3966    2172 Highway 70 West    Ruidoso Downs    NM    88346
2178    1085 Pioneer Blvd.    Mesquite    NV    89027
3306    228 West Main Street    Malone    NY    12953
3203    61 South Main Street    Oneonta    NY    13820
3603    3725 East Main    Fredonia    NY    14063
3024    960 State Route 36    Hornell    NY    14843

 

32


Store
Number
   Address    Town    State    Zip
9843    160 Clinton Ave.    Cortland    NY    13045
3104    6586 St. Hwy 56    Potsdam    NY    13676
3134    14218 Route 219    Springville    NY    14141
3148    461 North Main St.    Warsaw    NY    14569
4172    87-91 Nelson Road    Cazenovia    NY    13035
5152    1601 Penfield Rd.    Rochester    NY    14625
3223    325 East Albany Street    Herkimer    NY    13350
3428    25 Sullivan Avenue, Suite 1    Liberty    NY    12754
3841    8326 Lewiston Road    Batavia    NY    14020
3853    65 Main Street    Saranac Lake    NY    12983
3923    7 Dover Village Plaza, Suite #2    Dover Plains    NY    12522
7893    4364 Pondside Plaza    Geneseo    NY    14454
3983    1572 State Route 22NW    Washington Court House    OH    43160
3800    15561 W. High St.    Middlefield    OH    44062
2751    2350 East State Street    Salem    OH    44460
3204    1159 South Shannon    Van Wert    OH    45891

 

33


Store
Number
   Address    Town    State    Zip
3611    1810 E. Mansfield St.    Bucyrus    OH    44820
3883    780 East Main Street    Jackson    OH    45640
3390    Skyview Plaza St. Rt. 170    East Liverpool    OH    43920
3462    2200 Eastern Ave    Gallipolis    OH    45631
3531    743 E. State Street F2    Athens    OH    45701
7821    1258 Bellefontaine St.    Wapakoneta    OH    45895
3074    27 Pine Grove Square    Grove City    PA    16127
7853    100 Perry Highway    Harmony    PA    16037
4951    360 E. Broad Street    Pataskala    OH    43062
2172    150 Hocking Mall    Logan    OH    43138
3020    2995 Cleveland Road    Wooster    OH    44691
3520    2500 West State Street    Alliance    OH    44601
3791    989 E. Columbus St.    Kenton    OH    43326
5052    6656 N. Ridge Rd.    Madison    OH    44057
3769    1220 Russ Road    Greenville    OH    45331
3804    1234 N. Main    Bowling Green    OH    43402

 

34


Store
Number
   Address    Town    State    Zip
3868    993 Coshocton Road    Mount Vernon    OH    43050
7807    3409 S. Broadway    Edmond    OK    73013
3028    1717 S. Broadway    Grove    OK    74344
3447    1101 Lonnie Abbott Blvd    Ada    OK    74820
3722    200 N. Mill    Pryor    OK    74361
3386    2821 West 3rd Street    Elk City    OK    73648
3604    310 N. Washington #1247    Weatherford    OK    73096
3636    3000 S. Eighth Street    Woodward    OK    73801
3647    1601 South Wood Drive    Okmulgee    OK    74447
3727    617 S. Main St.    Eufaula    OK    74432
3936    27 Plaza South    Tahlequah    OK    74464
3457    412 East Hartford    Ponca City    OK    74601
3708    615 Westside Dr.    Durant    OK    74701
7483    1922 S. 4th St.    Chickasha    OK    73018
3949    Rural Route 2, Box 976-2    Broken Bow    OK    74728
3469    1621 NE Baker Street    McMinnville    OR    97128

 

35


Store
Number
   Address    Town    State    Zip
3619    1700 Portland Ave.    LaGrande    OR    97850
3479    1332 West 6th Street    The Dalles    OR    97058
3369    1611 Virginia Avenue    North Bend    OR    97459
3389    1551 Northeast F Street    Grants Pass    OR    97526
3808    2017 Main Street    Baker City    OR    97814
3876    685-A Highway 101    Florence    OR    97439
3419    1152 Marine Drive    Astoria    OR    97103
3429    2200 N COAST HWY 101    Newport    OR    97365
3439    80487 North Hwy 395    Hermiston    OR    97838
3449    51581 Columbia River Highway    Scappoose    OR    97056
4734    224 SW 6th Street    Redmond    OR    97756
5017    510 SW 5th Street    Madras    OR    97747
3368    118 Gateway Blvd.    Cottage Grove    OR    97424
3922    1517 SW Highway 101    Lincoln City    OR    97367
3373    1534 North Center Avenue    Somerset    PA    15501
1823    380 West Columbus Ave    Corry    PA    16407

 

36


Store
Number
   Address    Town    State    Zip
3974    1385 Bucktail Rd.    St. Marys    PA    15857
3094    9525 Lincoln Highway    Bedford    PA    15522
1903    1241 Blakeslee Blvd. East    Lehighton    PA    18235
2753    7495 Huntingdon Plaza    Huntingdon    PA    16652
3374    1516 Golden Mile Road    Towanda    PA    18848
3739    559 High Street    Lock Haven    PA    17745
3871    173 N Main Street    Mansfield    PA    16933
3878    16039 Conneaut Lake Rd. Suite #101    Meadville    PA    16335
3083    240-4 South West End Blvd.    Quakertown    PA    18951
5574    400 North Union St.    Olean    NY    14760
3190    325 West Freedom Ave, Suite #115    Burnham    PA    17009
7734    5163 Milford Road    East Stroudsburg    PA    18302
9741    Local #10 Quatro Calles Shop CTR 200Carretera 116 STE    Yauco    PR    00698
7735    Carr. 167 Esq. 199    Bayamon    PR    00956
3224    Carretera No. 2 Km 110.3    Isabela    PR    00662
9747    1000 Jesus T. Pinero Ave.    Cayey    PR    00736

 

37


Store
Number
   Address    Town    State    Zip
3264    20 Commons Corner Way    Wakefield    RI    02879
3414    1235 West Main Road    Middletown    RI    02842
3055    366 Market Street    Seneca    SC    29678
4111    1298 Broad Street    Sumter    SC    29150
7515    523 Columbia Avenue    Lexington    SC    29072
3615    P.O. Box 146    Lugoff    SC    29078
3693    217 Highway 701 N.    Loris    SC    29569
3887    107 Westfield St.    Hartsville    SC    29550
3325    1410 Montague Ave. Ext.    Greenwood    SC    29649
3455    1125 Highway 9 Bypass    Lancaster    SC    29720
3785    1249 N. Fraser Street    Georgetown    SC    29440
3836    377 Bells Highway    Walterboro    SC    29488
3144    1801 North Main    Mitchell    SD    57301
3160    1101 Jenson Ave.    Watertown    SD    57201
3278    2901 Broadway    Yankton    SD    57078
3735    2221 Jacksboro Pike    LaFollette    TN    37766

 

38


Store
Number
   Address    Town    State    Zip
3903    106 Hwy 51 North    Batesville    MS    38606
3367    1229D Sunset Drive    Grenada    MS    38901
3576    236 South Roane St.    Harriman    TN    37748
2723    1094 Wayne Road    Savannah    TN    38372
3186    1060 Mineral Wells Ave    Paris    TN    38242
3915    6034 South First Street    Milan    TN    38358
3486    550 Highway 51 By-Pass    Dyersburg    TN    38024
3546    231 Northgate Shopping Center    McMinnville    TN    37110
3547    715 North Main Street    Covington    TN    38019
7491    640 W. Poplar Ave    Collierville    TN    38017
7737    269 Dickson Plaza Drive    Dickson    TN    37055
7815    1202 S. James M. Campbell Blvd.    Columbia    TN    38401
9628    620 Madison St.    Shelbyville    TN    37160
3616    900 North Austin Avenue #123    Georgetown    TX    78626
3766    1208 West Dickinson    Fort Stockton    TX    79735
4798    2301 10th St.    Floresville    TX    78114

 

39


Store
Number
   Address    Town    State    Zip
3568    2801 Hwy 180 East, Suite # 14    Mineral Wells    TX    76067
3967    2024 Crockett Rd.    Palestine    TX    75801
9776    1115 West Park Avenue    Hereford    TX    79045
3487    320 North Commerce    Ardmore    OK    73401
3742    2720A N. Main Street    Altus    OK    73521
3527    1212 Marlandwood    Temple    TX    76502
3728    811 E. Main Street    Alice    TX    78332
1975    1627 South Jackson Street    Jacksonville    TX    75766
3458    114 North Business I-H35    New Braunfels    TX    78130
3806    307 N.W. Loop 436    Carthage    TX    75633
3948    909 E. Milam    Mexia    TX    76667
5175    1700 RR 620 North    Lakeway    TX    78734
3328    168 Col. Etheredge Blvd.    Huntsville    TX    77340
7489    111A Blanco Ave    Blanco    TX    78606
9258    708 S. Dumas Ave.    Dumas    TX    79029
1932    2320 Highway 36 South    Sealy    TX    77474

 

40


Store
Number
   Address    Town    State    Zip
2709    2625 South Loop 35    Alvin    TX    77511
2739    601 Northwest Parkway, Suite 3    Azle    TX    76020
3378    836 West 7th Avenue    Corsicana    TX    75110
3388    5109 Wesley Street    Greenville    TX    75401
3488    1111 E. Tyler #101B    Athens    TX    75751
3528    600 North Highway 77    Waxahachie    TX    75165
3607    821 Hwy 90A East    Richmond    TX    77469
3717    1609 Sedberry    Marshall    TX    75670
3756    118 S. Main St.    Pleasanton    TX    78064
4693    8910 Bandera Road    San Antonio    TX    78250
3026    2323 N. Main Suite B    Liberty    TX    77575
3337    1601 S. Hwy 77    Kingsville    TX    78363
3398    420 Early Blvd.    Early    TX    76802
3418    3801 North Street    Nacogdoches    TX    75961
3672    1010 West Business 380    Decatur    TX    76234
3747    202 Adams Drive    Weatherford    TX    76086

 

41


Store
Number
   Address    Town    State    Zip
3866    2514 South State Hwy 36    Gatesville    TX    76528
3882    1623 N. Hobart    Pampa    TX    79065
3744    510 East I-H10    Seguin    TX    78155
3988    332 W. FM 564    Mineola    TX    75773
7787    638 East Houston Street    Cleveland    TX    77327
3916    2264 MacArthur Drive    Orange    TX    77630
1815    1803 West 1800 North, G-3    Clinton    UT    84015
3962    25 East 800 South    Richfield    UT    84701
5202    84 S. Main Street    Heber City    UT    84032
3529    1830 N. Main    Cedar City    UT    84720
7173    360 N. Main Street    Ephraim    UT    84627
7408    162 N. Main Street    Tooele    UT    84074
3289    25044 Lankford Hwy (Route 13)    Onley    VA    23418
1923    1170 Celebration Ave.    Moneta    VA    24121
3363    571 C James Madison Highway    Culpeper    VA    22701
3474    51-J Burgess Road    Harrisonburg    VA    22801

 

42


Store
Number
   Address    Town    State    Zip
3433    3100 Halifax Rd.    South Boston    VA    24592
3095    P.O. Box 709    Gloucester    VA    23061
3444    1206 Greenville Avenue    Staunton    VA    24401
3484    Wise County Plaza Shopping Center    Wise    VA    24293
3663    40518 West Morgan Ave.    Pennington Gap    VA    24277
7468    783 E. Main Street    Abingdon    VA    24210
1817    1425 C South Main Street    Farmville    VA    23901
3712    1675 Tappahannock Blvd.    Tappahannock    VA    22560
5190    2010 Second Street    Richlands    VA    24641
5695    412 N. Main Street    Kilmarnock    VA    22482
2702    383 Exhange Street    Middlebury    VT    05753
3513    U.S. Route 5    Derby    VT    05829
3533    P.O. Box 598    Morrisville    VT    05661
4694    1999 Memorial Drive, Suite 2    St. Johnsbury    VT    05819
3523    831 Meadow Street    Littleton    NH    03561
7573    94 Harvest Lane    Williston    VT    05495

 

43


Store
Number
   Address    Town    State    Zip
3503    1598 US Route 302 - Berlin    Barre    VT    05641
4864    414 Route 7 South    Milton    VT    05468
3044    214 Northside Drive Suite 5    Bennington    VT    05201
3124    364 Swanton Rd.    Saint Albans    VT    05478
3589    465 N.E. Midway Boulevard    Oak Harbor    WA    98277
3158    730 E. Main    Othello    WA    99344
3954    1410 South Blaine    Moscow    ID    83843
2159    101 Mashell Ave N.    Eatonville    WA    98328
3549    520 South Lincoln Street    Port Angeles    WA    98362
3019    702 Hwy 395 North    Colville    WA    99114
3448    10 West First Street    Cheney    WA    99004
5180    224 NE 3rd Ave.    Camas    WA    98607
3559    312 South Division Street    Moses Lake    WA    98837
3569    505 North Pearl    Ellensburg    WA    98926
5693    1206 Basin St. SW    Ephrata    WA    98823
3891    1908 Lake Shore Dr. East    Ashland    WI    54806

 

44


Store
Number
   Address    Town    State    Zip
3250    1645 N. Spring St.    Beaver Dam    WI    53916
3191    908 Lincoln St.    Rhinelander    WI    54501
3391    1660 Commerce Court    River Falls    WI    54022
3532    275 W. 33rd St.    Hastings    MN    55033
3731    2800 College Drive    Rice Lake    WI    54868
3182    2521 A Hils Court    Menomonie    WI    54751
7822    700 E. Blackhawk Ave.    Prairie du Chien    WI    53821
3562    520 S. Black River    Sparta    WI    54656
3052    700 East Magnolia    Manitowoc    WI    54220
6856    2615 Eastern Ave    Plymouth    WI    53073
7270    1114 N. Superior Ave    Tomah    WI    54660
7398    1150 Service Road    Kiel    WI    53042
1851    15734 Hwy 63    Hayward    WI    54843
1933    1970 Sutler Ave    Beloit    WI    53511
3181    351 Peller Road    Lake Geneva    WI    53147
3729    316 Service Road    Spooner    WI    54801

 

45


Store
Number
   Address    Town    State    Zip
3080    1720 South Church Street    Watertown    WI    53094
3221    1810 North Central    Marshfield    WI    54449
3239    1515 Bohmann Dr.    Richland Center    WI    53581
3435    950 Elden Ave.    Amery    WI    54001
7163    2081 Witzel Ave.    Oshkosh    WI    54904
3189    822 E. Green Bay Street    Shawano    WI    54166
7952    55 Viking Drive    Reedsburg    WI    53959
3993    445 State Highway 64    Antigo    WI    54409
3583    29 South Hill Plaza Drive    Ripley    WV    25271
3283    9803 Mall Loop Road    Fairmont    WV    26554
2733    1921 Applebee Way    Covington    VA    24426
3023    Box 17A, Rte. 1    Ronceverte    WV    24970
3113    237 South Kanawha Street    Buckhannon    WV    26201
3553    50 Stonewall Drive    Summersville    WV    26651
4834    500 Keyser Square    Keyser    WV    26726
3893    89 Pleasant Hill Dr.    Oakland    MD    21550

 

46


Store
Number
   Address    Town    State    Zip
3114    1611 Harrison Ave.    Elkins    WV    26241
3543    105 Holly Avenue    Logan    WV    25601
9361    300 Wharton Circle Suite 120    Triadelphia    WV    26059
3578    63 Center Street    Rock Springs    WY    82901
1867    411 S. 2nd Street    Laramie    WY    82070
3470    305 East Lakeway Road    Gillette    WY    82718
3018    801 N. Federal    Riverton    WY    82501
1849    3150 Baseline Hwy    Cornelius    OR    97113
1869    1422 Highway 367 North    Newport    AR    72112
2187    9900 South IH 35 Service Road    Austin    TX    78748
2738    900 North 5th Street    Leesville    LA    71446
3001    1909 E. Austin Blvd.    Nevada    MO    64772
3006    99 Cary Lu Circle    Harpers Ferry    WV    25425
3030    211 Highway 432    Oskaloosa    IA    52577
3048    220 Rotanzi St.    Ramona    CA    92065
3102    7147 West 48th Street    Fremont    MI    49412

 

47


Store
Number
   Address    Town    State    Zip
3303    850 N. Van Dyke    Bad Axe    MI    48413
3309    2302 West Pierce Street    Carlsbad    NM    88220
3311    06585 M66 Hwy    Charlevoix    MI    49720
3338    410 S. Texas Drive    Eagle Pass    TX    78852
3382    1070 S. Bishop Street    Rolla    MO    65401
3387    1801 S. Harper Rd.    Corinth    MS    38834
3421    2722 Paul Bunyan Drive N.W.    Bemidji    MN    56601
3445    1347-B Ribaut Road    Port Royal    SC    29935
3463    600 North Broad    Middletown    DE    19709
3473    560 Chestnut St.    Bradford    PA    16701
3489    97900 Shopping Center Drive    Harbor    OR    97415
3494    972 East Stuart Dr.    Galax    VA    24333
3519    1783 West Hwy 40    Vernal    UT    84078
3530    1420 East College Drive    Marshall    MN    56258
3538    1507 West 5th Street    Plainview    TX    79072
3539    115 E 400N    Logan    UT    84321

 

48


Store
Number
   Address    Town    State    Zip
3572    224 East Hwy 12    Litchfield    MN    55355
3590    11130 W US Highway 50    Poncha Springs    CO    81242
3591    901 W. Morton Avenue    Jacksonville    IL    62650
3617    2004 West State Hwy 71    LaGrange    TX    78945
3640    1535 American Legion Rd.    Mountain Home    ID    83647
3648    1004 N. Brindlee Mtn. Pkwy.    Arab    AL    35016
3686    2603 US Hwy 281 North    Marble Falls    TX    78654
3698    911 Main Street    Susanville    CA    96130
3752    918 S. Alabama Ave    Monroeville    AL    36460
3809    1795 12th Street    Hood River    OR    97031
3816    512 S Adams Street    Fredericksburg    TX    78624
3827    3308 Highway 35 North    Rockport-Fulton    TX    78382
3867    11554 Columbia St.    Blakely    GA    39823
3898    325 S. Davis Rd.    LaGrange    GA    30241
3900    2800 Cornerstone Drive    Pagosa Springs    CO    81147
3902    743 Gaines Drive    Clinton    MO    64735

 

49


Store
Number
   Address    Town    State    Zip
3908    40322 Junction Drive    Oakhurst    CA    93644
3921    2092 E. Main Street    Robinson    IL    62454
3930    2052 North Jefferson    Huntington    IN    46750
3944    1905 Wilson Rd.    Newberry    SC    29108
3961    1514 S. Main    Boerne    TX    78006
3989    2645 Mountain Hwy    Elko    NV    89801
5199    1056 North Marine Corps Drive    Tamuning    GU   
5248    6818 S Zarzamora    San Antonio    TX    78224
3021    220 Baden Strasse    Jasper    IN    47546
3031    3917 North Carson Street    Carson City    NV    89706
3033    367 Washington Street    Claremont    NH    03743
3059    4311 South 6th    Klamath Falls    OR    97603
3066    912 South 12th Street    Murray    KY    42071
3067    2700 Mount Pleasant Street    Burlington    IA    52601
3092    26-1st Ave. Southwest    Lemars    IA    51031
3093    7172 Rte. 54    Bath    NY    14810
3108    1005 Stevenson Ave.    Enumclaw    WA    98022

 

50


Store
Number
   Address    Town    State    Zip
3111    1605 First Street South    Willmar    MN    56201
3115    2908 Citizens Parkway    Selma    AL    36701
3136    370 So. Hwy 27 #9    Somerset    KY    42501
3159    14691 Mono Way    Sonora    CA    95370
3171    1919 Old West Main    Red Wing    MN    55066
3172    550 North Fairview Boulevard    Kendallville    IN    46755
3174    204 W. Main Street    Ft. Kent    ME    04743
3176    1860 N. Main St.    Crossville    TN    38555
3197    302 North 6th Street    Blytheville    AR    72315
3206    2534 Lee Avenue    Sanford    NC    27332
3237    1602 Industrial Road    Emporia    KS    66801
3238    4551 S. White Mountain Rd. #3    Show Low    AZ    85901
3240    643 N. Morley    Moberly    MO    65270
3267    2508 Vine Street    Hays    KS    67601
3270    1010 S. Kansas    Liberal    KS    67901
3301    910 Evergreen    Houghton    MI    49931

 

51


Store
Number
   Address    Town    State    Zip
3340    104 South Sunset    Butler    MO    64730
3345    Franklin Village Mall #19A    Kittanning    PA    16201
3359    762 Lindsay Lane    Cody    WY    82414
3371    3606 East Lincolnway    Sterling    IL    61081
3392    P.O. Box 940    Saint Robert    MO    65584
3406    2400 Veterans Blvd.    Del Rio    TX    78840
3410    1467 Coffeen Avenue    Sheridan    WY    82801
3467    500 Village Blvd.    Mcalester    OK    74501
3475    3050 Village Park Drive    Plover    WI    54467
3498    3715 134th Street NE    Marysville    WA    98271
3501    910 Huntington Avenue    Wisconsin Rapids    WI    54494
3512    7363 Hwy. 51 South    Minocqua    WI    54548
3522    4193 East Grand River    Howell    MI    48843
3540    1400 S. Mission St.    Mount Pleasant    MI    48858
3571    1704 S. Heaton    Knox    IN    46534
3592    101 N. Fourth St.    Atchison    KS    66002

 

52


Store
Number
   Address    Town    State    Zip
3593    161 Main Street    Gorham    NH    03581
3620    420 Shilling Drive North    Dundas    MN    55019
3631    210 1st Street South East    Little Falls    MN    56345
3643    228 Stockbridge Rd.    Great Barrington    MA    01230
3667    1203 W. Ferguson Rd.    Mt. Pleasant    TX    75455
3689    444 HWY 531    Minden    LA    71055
3737    914 West Main    Homer    LA    71040
3765    4695 CR540A East    Lakeland    FL    33830
3822    1600 A Street N.E.    Linton    IN    47441
3839    160 Fairview Ave    Hudson    NY    12534
3848    239 Walker Rd.    Alamosa    CO    81101
3877    13447 Highway 157    Moulton    AL    35650
3938    3862 Hwy 280    Alexander City    AL    35010
3956    301 East Main Street    Atlanta    TX    75551
3976    3300 Highway 11 North    Picayune    MS    39466
3996    404 W. Main St.    Lake City    SC    29560

 

53


Store
Number
   Address    Town    State    Zip
7482    60 E. Main Street    Norwalk    OH    44857
7671    14283 Fenton Road    Fenton    MI    48430
7781    540 Commons Drive    Fulton    MO    65251
7814    1214 N. Weslyan Blvd.    Rocky Mount    NC    27804
7825    1094 South East Vermont Ave    Arcadia    FL    34266
7921    238 W. 6th Street    Concordia    KS    66901
3910    1867 - 6th Avenue West    Dickinson    ND    58601
3919    232 Valley Center PL.    Sequim    WA    98382
3920    1690 East 23rd Ave. North    Fremont    NE    68025
3953    671 Happy Valley Rd.    Glasgow    KY    42141
3957    1655 Henderson, Suite A    Cleburne    TX    76033
9490    69 North 28th St    Superior    WI    54880
9774    4100 S. New Braunfels Ave.    San Antonio    TX    78223
9941    1450 Kearney Road    Excelsior Springs    MO    64024
1812    1000 South 8th Street    Clarinda    IA    51632
1833    103 S. 6th Street    Brownfield    TX    79316

 

54


Store
Number
   Address    Town    State    Zip
1934    322 Eureka Street    Berryville    AR    72616
2701    2790 Woodlawn Road    Lincoln    IL    62656
2707    Carretera No. 2 Barrio Candelaria KM 18.3    Toa Baja    PR    00949
2761    1108 E. 16th Street    Wellington    KS    67152
2776    7827 Highway 613    Moss Point    MS    39563
2780    2014 Lincolnway East, Suite 2    Goshen    IN    46528
3000    208 Ute Street    Delta    CO    81416
3036    913 East Sixth Avenue    Stillwater    OK    74074
3038    2140 Feather River Blvd.    Oroville    CA    95965
3042    815 Fulton Box # 4    Waupaca    WI    54981
3049    15875 Dam Road Ext.    Clearlake    CA    95422
3062    2524 North Broadway    Pittsburg    KS    66762
3073    3845 Bay Shore Road    North Cape May    NJ    08204
3091    1429 West High Street    Bryan    OH    43506
3107    2020 Northwest Ave    El Dorado    AR    71730
3109    362 North Franklin Street    Fort Bragg    CA    95437

 

55


Store
Number
   Address    Town    State    Zip
3123    19 Washington Square Mall    Chestertown    MD    21620
3125    2630 Alabama Avenue N.    Fort Payne    AL    35967
3165    158 Micah Way    Scottsboro    AL    35769
3178    835 First Street    Gilroy    CA    95020
3192    1005 North 18th Street    Centerville    IA    52544
3199    1230 Airport Park Blvd.    Ukiah    CA    95482
3296    604 East Broadway    Sweetwater    TX    79556
3297    412 Avenue B    Bogalusa    LA    70427
3299    Road 111 km. 15.6    San Sebastian    PR    00685
3312    720 South Westwood Boulevard    Poplar Bluff    MO    63901
3349    901 Metro    Gallup    NM    87301
3395    921 Hillcrest Parkway    Dublin    GA    31021
3397    222 Highway 51 North    Brookhaven    MS    39601
3434    P.O. Box 6    South Hill    VA    23970
3450    721 West Bedford Road    Morris    IL    60450
3460    2915 North Summit    Arkansas City    KS    67005

 

56


Store
Number
   Address    Town    State    Zip
3466    1421 S. First Street    Union City    TN    38261
3468    3120 Avenue F    Bay City    TX    77414
3472    1411 N. Liberty Circle E.    Greensburg    IN    47240
3493    P.O. Box 218    Houlton    ME    04730
3496    2001 North St. Mary’s Street    Beeville    TX    78102
3497    420 Hwy. 377 E    Granbury    TX    76048
3508    1402 Mockingbird Lane    Sulphur Springs    TX    75482
3518    2185 West South Loop    Stephenville    TX    76401
3525    1555 Fording Island Road, Suite F    Hilton Head Island    SC    29926
3536    2344 East Main    Uvalde    TX    78801
3537    1990 McCulloch Boulevard #104    Lake Havasu City    AZ    86403
3548    1901 West Gibson    Jasper    TX    75951
3567    168 Golden Rod    Mansura    LA    71350
3599    317 S. Main Street    Omak    WA    98841
3633    1009 Arizona Ave.    Parker    AZ    85344
3639    1190 Trade Days Blvd.    Canton    TX    75103

 

57


Store
Number
   Address    Town    State    Zip
3649    1281 E. Calvada Blvd.    Pahrump    NV    89048
3690    18675 Unit 26 Coastal Hwy.    Rehoboth    DE    19971
3694    813 East Main Street    Cobleskill    NY    12043
3700    3151 S. Springfield Ave.    Bolivar    MO    65613
3714    KM 2.8 Bo Quebradillas    Barranquitas    PR    00794
3736    P.O. Box 241    Henderson    TN    38340
3772    3315 6th Ave. SE    Aberdeen    SD    57401
3859    1430 W. Williams Ave.    Fallon    NV    89406
3870    926 W. High Street    Ebensburg    PA    15931
3906    1339 Highway 270 West    Malvern    AR    72104
3913    15455 Route 6    Clarendon    PA    16313
3918    1393 Fort Williams Square    Sylacauga    AL    35150
3950    1124 Independence Ave.    Kennett    MO    63857
3952    116 South First Street    Montevideo    MN    56265
5108    3355 Hwy 431, Suite 7    Roanoke    AL    36274
5276    18721 E Ponderosa    Parker    CO    80138

 

58


Store
Number
   Address    Town    State    Zip
5312    5885 Palmer Park Blvd.    Colorado Springs    CO    80915
3016    2130 Decherd Boulevard    Decherd    TN    37324
3029    2570 S. Main Street    Lakeport    CA    95453
3040    1016 Linn Street    Sikeston    MO    63801
3058    74 South Carbon Avenue    Price    UT    84501
3082    300 North Penn    Independence    KS    67301
3084    480 Downtowner Plaza    Coshocton    OH    43812
3086    275 Southside Mall Road    South Williamson    KY    41503
3088    1702 East Gregory Avenue    Sunnyside    WA    98944
3100    704 Avenue G    Fort Madison    IA    52627
3106    450 Village Lane    Hazard    KY    41701
3129    129 Idaho Maryland Road    Grass Valley    CA    95945
3138    1305 W. Yosemite Ave.    Manteca    CA    95336
3142    4103 Holiday Lane    Ottawa    IL    61350
3149    415 Grass Valley Highway    Auburn    CA    95603
3167    920 South Arkansas Avenue    Russellville    AR    72801

 

59


Store
Number
   Address    Town    State    Zip
3209    795 S. Highway 49    Jackson    CA    95642
3216    1503 West Ehringhaus Street    Elizabeth City    NC    27909
5710    1025 North Texas Blvd.    Weslaco    TX    78596
3219    835 Tucker Road #A and B    Tehachapi    CA    93561
3222    St. Marys Square    Saint Marys    OH    45885
3228    1700 Rainbow Drive    Canon City    CO    81212
3249    427 Main Street    Woodland    CA    95695
3256    2350 Miracle Mile Road    Bullhead City    AZ    86442
3269    1701 Soscol Ave    Napa    CA    94559
3279    615 East Hobson Way    Blythe    CA    92225
3298    3120 Dredge Drive    Helena    MT    59602
3302    1037 W. Broadway    Centralia    IL    62801
3310    1704 W. Main St.    Carmi    IL    62821
3327    707 North Lamar    Oxford    MS    38655
3329    1310 Silver Heights Boulevard    Silver City    NM    88061
3332    3117 West Broadway    Sedalia    MO    65301

 

60


Store
Number
   Address    Town    State    Zip
3348    2507 Becker Drive    Brenham    TX    77833
3353    Easton Market Place    Easton    MD    21601
3358    345 Junction Highway    Kerrville    TX    78028
3381    6375 M 72 West    Grayling    MI    49738
3399    2400 - 8th Avenue Southwest    Jamestown    ND    58401
3408    1801 East FM 700-C6    Big Spring    TX    79720
3412    1299 W. Washington    Pittsfield    IL    62363
3420    408 Central Avenue    Estherville    IA    51334
3425    735 Old Austin Hwy    Bastrop    TX    78602
3431    990 West 41st Street    Hibbing    MN    55746
3438    321 North Beatty    Livingston    TX    77351
3478    2121 North Main    Taylor    TX    76574
3499    1702 Freedom Boulevard    Freedom    CA    95019
3541    501 West North Avenue    Flora    IL    62839
3556    1420 Cedar Lane    Tullahoma    TN    37388
3561    325 S. Washington    Duquoin    IL    62832

 

61


Store
Number
   Address    Town    State    Zip
3585    1315 North Norwood Street    Wallace    NC    28466
3586    3001 North Highway 81    Duncan    OK    73533
3597    301 Fairview    Crossett    AR    71635
3628    912 Main Street    Winfield    KS    67156
3634    3119 Cranberry Hwy    East Wareham    MA    02538
3645    1605 - 7th Street North    Clanton    AL    35045
3662    137 E. Illinois Street    Spearfish    SD    57783
3685    1946 Bypass Rd.    Winchester    KY    40391
3706    410 Pinola Drive SE    Magee    MS    39111
3707    717 West Park Ave    Greenwood    MS    38930
3715    740 N. Main Street    Fuquay-Varina    NC    27526
3724    1544 N. Temple    Fayette    AL    35555
3754    756 Century Ave SW    Hutchinson    MN    55350
3780    1654 7th Street    Las Vegas    NM    87701
3786    Ferram Plaza    Aguadilla    PR    00603
3795    1406 Huntsville Highway    Fayetteville    TN    37334

 

62


Store
Number
   Address    Town    State    Zip
3796    2919 W. Pine    Arkadelphia    AR    71923
3831    915 13th Street SW    Spencer    IA    51301
3881    703 W. Main St.    Olney    IL    62450
6846    1317 Armory Drive    Franklin    VA    23851
6987    1926 Hwy 64 North    Guymon    OK    73942
7176    700 Tennessee Blvd.    Dalhart    TX    79022
3723    1606 N. Locust Ave    Lawrenceburg    TN    38464
7220    803 Martin St S    Pell City    AL    35128
7467    1444 N. Broad Street    Tazewell    TN    37879
7550    1800 Pipestone Rd    Benton Harbor    MI    49022
7700    580 W Hwy 32    Stockton    MO    65785
7721    99 Hwy 37 S    Cassville    MO    65625
7732    3115 HWY 28 EAST    Pineville    LA    71360
7765    El Trigal Plaza Shopping Center    Manati    PR    00674
3907    1106 Highway 16 South    Graham    TX    76450
3912    685 E. State Street    Georgetown    OH    45121

 

63


Store
Number
   Address    Town    State    Zip
3927    1710 W. Main St.    Gun Barrel City    TX    75147
3998    827 S. Main St.    Yreka    CA    96067
9278    Carr. PR-3 Int PR 956 KM 24.5    Rio Grande    PR    00745
9591    417 S. First St.    Lamesa    TX    79331
9976    Carretera #3 km 82.5    Humacao    PR    00791
1811    2720 State Highway 121    Euless    TX    76039
1856    5864 N. Tarrant Pkwy    Ft. Worth    TX    76137
1858    12770 South Freeway Suite 176    Burleson    TX    76028
7567    145 W. FM 1382    Cedar Hill    TX    75104
7686    6186 Retail Rd.    Dallas    TX    75231
1741    9544 Manchester Rd.    Rock Hill    MO    63119
1803    14173 Manchester Road Suite    Manchester (Town & Country)    MO    63011
2930    1890 Wentzville Pkwy    Wentzville    MO    63385
5171    455 N Hwy 67    Florissant    MO    63031
5331    2947 Highway K    O’Fallon    MO    63366
5392    40 Dillon Plaza    High Ridge    MO    63049

 

64


Store
Number
   Address    Town    State    Zip
5900    3160 Telegraph Road    St. Louis    MO    63125
1821    1294 Town Centre Dr.    Eagan    MN    55123
1926    9721 E. Independence Blvd.    Matthews    NC    28105
1931    8300 Tamarack Village    Woodbury    MN    55125
1940    11669 Fountain Dr.    Maple Grove    MN    55369
2192    701 Apollo Drive, Suite 130    Lino Lakes    MN    55014
2202    4530-A 40th Street NW    Washington (Tenleytown)    DC    20016
2426    2980 Prince William Parkway    Woodbridge    VA    22192
2634    9821 Northlake Center Parkway    Charlotte (Northlake)    NC    28216
2713    10035 Biddick Ln., Suite 100    Huntersville    NC    28078
5091    2000 Cooper Foster Park    Lorain    OH    44053
5120    5308 Detroit Road    Elyria    OH    44035
5130    2300 Troy Road    Edwardsville    IL    62025
5184    13348 Franklin Farm Road    Herndon    VA    20171
5210    949 E. Aurora    Macedonia    OH    44056
5320    501 #20 Beltline Road Suite P    Collinsville    IL    62234

 

65


Store
Number
   Address    Town    State    Zip
5341    8459 Washington Street    Bainbridge    OH    44023
5354    1180 N. Court Street    Medina    OH    44256
5371    653 Carlyle Ave. Suite C    Belleville    IL    62221
5411    3737 W Market St - Unit A    Fairlawn    OH    44333
5474    4706 Route 8    Allison Park    PA    15101
5774    6365 Multiplex Drive    Centreville    VA    20121
5810    6009 Mahoning Avenue    Youngstown    OH    44515
5871    7490 Broadview Road    Parma    OH    44134
5022    23200 Lorain Road    North Olmsted    OH    44070
5081    843 30th Street NW    Canton    OH    44709
9296    300 Bonner Mall Way, Suite 102-105    Ponderay    ID    83852
2024    2370 South Range Ave    Denham Springs    LA    70726
5274    #2 Fairhaven Commons Way    Fairhaven    MA    02719
5353    310 Pond Street (Rt. 126)    Ashland    MA    01721
5103    95 Drum Hill Road    Chelmsford    MA    01824
9286    2115A Commonwealth Ave.    Alhambra    CA    91803

 

66


Store
Number
   Address    Town    State    Zip
9295    30485 Avenida de Las Flores    Rancho Santa Margarita    CA    92688
1848    3951 Costco Drive    Tucson    AZ    85741
1829    13277 W. McDowell Rd.    Goodyear    AZ    85338
4778    8684 E. Raintree Dr.    Scottsdale    AZ    85260
7537    401 East Bell Rd.    Phoenix    AZ    85022
3008    2100 S. Gilbert Rd.    Chandler    AZ    85286
1808    1150 N. Fry Rd.    Houston (Katy)    TX    77084
1809    14215 FM 2920    Tomball    TX    77377
1857    2805 Gulf Freeway South    League City    TX    77573
1859    15242 Wallisville Rd.    Houston (Wallisville)    TX    77049
1938    10904 Memorial Hermann Dr.    Pearland    TX    77584
1965    5932 Fairmont Parkway    Pasadena    TX    77505
5246    649 S. Mason Rd.    Katy    TX    77450
7178    15850 Southwest Freeway    Sugar Land    TX    77478
7379    25704 Northwest Freeway    Cypress    TX    77429
7391    1302 West Davis Street    Conroe    TX    77304

 

67


Store
Number
   Address    Town    State    Zip
7389    7011 FM 1960 East    Humble    TX    77346
1819    5601 Liberty Grove Road    Rowlett    TX    75089
1928    1405 Hwy 287 North, Suite 107    Mansfield    TX    76063
1936    5810 Long Prairie Rd.    Flower Mound    TX    75028
1937    1925 Central Expressway Bldg. G    McKinney    TX    75070
5086    11293 Fuqua Rd.    Houston    TX    77089
5247    4550 Highway 6 South    Sugarland    TX    77479
5067    6793 Spencer Highway    Pasadena    TX    77505
2004    2001 Widewaters Parkway    Knightdale    NC    27545
5195    9425 Jones Road    Houston    TX    77065
5196    4690 Louetta    Spring    TX    77388
5457    8475 Highway 6 North    Houston    TX    77095
5736    4775 W. Panther Crk Dr Ste 270    Woodlands    TX    77381
9666    511 Rt. 70 East #300    Brick    NJ    08723
5134    235 Ridgedale    Cedar Knolls    NJ    07927
9668    780 Rt. 3 West    Clifton    NJ    07012

 

68


Store
Number
   Address    Town    State    Zip
5604    305 Second Ave. - Suite 201    Collegeville    PA    19426
5083    3762 Easton-Nazareth Hwy.    Easton    PA    18045
5033    540 Oxford Valley Road    Fairless Hills    PA    19030
5243    616 N. Delsea Dr. (RT 47)    Glassboro    NJ    08028
5804    1926 Union Valley Road    Hewitt    NJ    07421
5874    4010 Rt. 9 South    Howell    NJ    07731
5293    2170 County Line Road    Huntingdon Valley    PA    19006
5213    817 E. Baltimore Pike    Kennett Square    PA    19348
5902    80 Godwin Avenue    Midland Park    NJ    07432
5843    400 College Square    Newark    DE    19713
5124    13 Hampton House / Rt. 206N    Newton    NJ    07860
5223    2811 Dekalb Pike    Norristown    PA    19401
5980    700 Nutt Road, Ste 500    Phoenixville    PA    19460
5123    70 Northwest End Blvd.    Quakertown    PA    18951
5473    551-556 Raritan Road    Roselle    NJ    07203
4661    4910 Hadley Center Drive    S. Plainfield    NJ    07080

 

69


Store
Number
   Address    Town    State    Zip
5164    7150 Hamilton Blvd. Box 808    Trexlertown    PA    18087
7172    5851 NJ Rte 42 South    Turnersville    NJ    08012
5284    1661 Easton Road C-1    Warrington    PA    18976
2235    6169 S. Jog Rd. Suite 8A-10A    Lake Worth    FL    33467
2785    13550 SW 120th Street, Bay 418    Miami (Kendall)    FL    33186
4256    6605 S. Dixie Highway    Miami (Dadeland)    FL    33143
7557    4376 North State Road 7    Coral Springs    FL    33067
7565    7910 W. Commercial Blvd.    Lauderhill    FL    33351
9522    2931 West Shore Drive    Holland    MI    49424
5472    3 N. Randall Road    Batavia    IL    60510
2559    9269 S. Village Shop Drive    Sandy    UT    84094

 

70


Schedule 1.1(b)

OUTLET STORES LOCATIONS

 

Store
Number
   Address    City    State    Zip
7920    1265 Town Square Drive.    Ft. Worth    TX    76116
9951    3610 Peck Dr.    El Monte    CA    36071
4650    18355 LBJ Freeway unit 55    Mesquite    TX    75150
9405    12080 Carmel Mountain    Carmel Mountain    CA    92128
4526    4560 Forest Hill Blvd    West Palm Beach    FL    33415
9603    8284 Troy Pike    Huber Heights    OH    45424
9785    8247 W Golf rd    Niles    Il    60174
9411    11687 Westheimer Rd    West Houston    TX    77077
9796    109 N Greenville Ave    Allen    TX    75002
9756    16040 S. Harlem Ave    Tinley Park    IL    60477
9696    1701 US Hwy 22    Plainfield    NJ    07060
7704    8345 W. Belmont    River Grove    IL    60170
9284    13435 Hwy, 183 N    Austin    TX    78750
9764    200 W Bellview    Englewood    CO    80110
9870    2235 S. Eastwood Drive    Woodstock    IL    60098
9986    14453 Hall Rd    Shelby Township    MI    48315
4790    6169 US Route 6    Portage    IN    46368
7237    7055 East broadway    Tucson    AZ    85710
9671    3700 William Penn Highway    Monroeville    PA    15146
7818    19750 North Freeway (HI-45N)    Spring    TX    77373
9670    540 S. Hwy 59    Naperville    IL    60540
5060    2885 Gender Rd    Reynoldsburg    OH    43068
9114    2700 Dekalb Pike    Norristown    PA    19401
9282    11000 Veirs Mills Road    Silver Spring    MD    20902
7359    2505-B Vista Way 1    Oceanside    CA    92054
9983    6101 N Military Highway    Norfolk    VA    23518
9974    545 Concord Pkwy    Concord    NC    28027
7661    6801 Dixie Highway    Louisville    KY    40258
9111    Discover Mills 5900 Sugarloaf Parkway    Lawrenceville    GA.    30043
9112    8540 Maurer    Lenexa    KS    66219
7911    29222 Carronada Dr    Perrysburg    OH    43551
7089    12025 N 32nd St    Phoenix    AZ    85028
7611    51 Spiral dr    Florence    KY    41042

 


Store
Number
   Address    City    State    Zip
7592    6020 Sawmill Road Suite 300    Dublin    OH    43017
9888    10176 SE 82nd AVE    Clackamas    OR    97086
9849    10405 S. Eastern AVE    Henderson    NV    89074
9944    8200 Belair RD    Baltimore    MD    21236
9850    2101 Telegraph    Bloomfield    MI    48302
9892    1302 Bridford PKWY    Greensboro    NC    27407
9876    4300 Fayetteville RD    Raleigh    NC    27603
7601    10200 Colerain Ave. Ste 11    Cincinatti    OH    45251
7631    401 SOUTHWEST PLZ STE 105    Arlington    TX    76016
7659    19800 HAWTHORNE BLVD #280    Torrence    CA    90503
7349    857 North Val Vista Drive    Gilbert    AZ    85234
7612    1140 ROSWELL ROAD SE    Marietta    GA    30062
5264    5450 Highway 153    Hixson    TN    37343
7546    898 N. Miami Beach Blvd    North Miami Beach    FL    33162
7633    190 Frontage Road    West Haven    CT    06516
7438    2335 East Imperial Highway    Brea    CA    92821
9497    680 West Winton Avenue    Hayward    CA    94545
7541    7647 W 88th Ave    Westminster    CO    80005
7450    26662 Brookpark Extension    North Olmsted    OH    44070
7440    35101 Euclid Ave    Willoughby    OH    44094
9486    350 Glendale Ave.    Sparks    NV    89431
7529    366 E. 1300 South    Orem    UT    84058
7564    9571 South Blvd    Charlotte    NC    28273
9897    820 Rector Drive East, Suite 120    San Antonio    TX    78209
7533    1117 Woodruff Rd, Suite K.    Greenville    SC    29607
7556    1915 Mount Zion Rd    Morrow    GA    30260
6052    8245B North Florida Road    Tampa    FL    33604
9229    1200 Blumenfeld Dr, Suite C    Sacramento    CA    95815
7586    7910 S.W. 104th St.    Miami    FL    33156
5282    728 South Orange    West Covina    CA    91790
5298    2280 Griffin Way    Corona East    CA    92879
7652    2700 Winter Street NE    Minneapolis    MN    55413
7457    3555-2 St. John’s Bluff Road    Jacksonville    FL    32224
7538    15711 1/2 Aurora Ave. North    Shoreline    WA    98133
7593    2005 South Military Hwy    Chesapeake    VA    23320
7588    393 East Main St    Hendersonville    TN    37075
7590    7333 W. 79th Street    Bridgeview    IL    60455
5342    1561 Almonesson Rd    Deptford    NJ    08096

 

2


Store
Number
   Address    City    State    Zip
7507    5799 Rome-Taberg Rd    Rome    NY    13440
7562    6045 S. Packard Ave.    Cudahy    WI    53110
7424    2209 North Hampton Street    Holyoke    MA    01040
5397    4500 NE 122nd Ave.    Portland    OR    97230
7561    9860 Telegraph Road    Taylor    MI    48180
5361    495 Prospect Ave #11    West Orange    NJ    07052
5365    2661A S Woodland Blvd    Deland    FL    32704
4583    3203 N Mayfair RD    Wauwatosa    WI    53222
4585    1000-2 Montauk Hwy    West Babylom    NY    11704
5207    1750 Richmond Rd    McHenry    IL    60050
4595    Carr. 176 K.M. 0.3    Cupey Bajo    PR    00926
4598    5000 Arizona Mills Circle, Suite 625    Tempe    AZ    85282
4696    5555 St. Louis Mills Blvd., Suite 283    Hazelwood    MO    63042
4697    870 Great Mall Drive    Milpitas    CA    95035
4599    2700 Potomac Mills Circle, Suite #707    Prince William    VA    22192
4481    8090 NW 77th Court    Medley    FL    33166
4486    3000 Grapevine Mills Parkway, Suite #117    Grapevine    TX    76051
4611    141 85th Avenue NW    Coon Rapids    MN    55433
4620    3467 Cleveland Ave.    Columbus    OH    43224
4482    822 Summit Ave.    Elgin    IL    60120
4617    1215 Marsh Lane, Suite #180    Carrollton    TX    75006
4619    639 Gravois Bluff Blvd., Suite A    Fenton    MO    63026
4621    1357 Franklin Mills Circle    Philadelphia    PA    19154
4618    10347 Folsom Blvd.    Rancho Cordova    CA    95670
4330    1910 York Road    Timonium    MD    21093
4606    7415 South Cass Avenue    Darien    IL    60561
4328    960 Sherman St.    San Diego    CA    92110
4324    65 Holmes Rd.    Newington    CT    06111
4044    500 Eagle Run Rd.    Newark    DE    19702
4049    500 W. Warner Ave.    Santa Ana    CA    92707
4185    5251 110th Ave. N., #120    Clearwater    FL    33760
4119    5401 6th Ave. Suite 515    Tacoma    WA    98406
4113    Shrewsbury Vlg Shpng Ctr. 1000 Boston Trnpk    Shrewsbury    MA    1545
4335    4600 Park St. North    St.Petersburg    FL    33709
4100    Spdwy Spr Ctr., 6022 W. Crawfordsville Rd.    Speedway    IN    46224
4205    Riverplace Shop Ctr, 11111 San Jose Blvd. Suite 1    Jacksonville    FL    32223
4333    1051 Washington Pike    Bridgeville    PA    15017

 

3


Store
Number
   Address    City   State    Zip
4099    492 N. Main St.    Corona   CA    92880
4823    133 Mariano S. Bishop Blvd.    Fall River   MA    02721
4601    322 S. Burnt Mill Rd.    Voorhees   NJ    08043
4958    2401 S. Vineyard Ave.    Ontario   CA    91761
4121    27 51st St.    Pittsburgh   PA    15201
4158    1936 W. 140th Ave.    San Leandro   CA    94577
4994    4100 Tomlynn St. - Suite “A”    Richmond   VA    23230
5230    12001 Sears Ave.    Livonia   MI    48150
4071    701 Osage St.    Denver   CO    80204
4356    642 Thompson Ln.    Nashville   TN    37204
4248    98-600 Kamehameha Hwy.    Pearl City   HI    96782
4345    3825 Forsyth Rd.    Winter Park   FL    32792
5640    2065 N. George St.    Melrose Park   IL    60160
4275    2301-A Mt. Industrial Blvd.    Tucker   GA    30084
4057    5901 Griggs Rd.    Houston   TX    77023
4001    3630 Front St.    Kansas City   MO    64120
1902    5000 Alpha Rd    Farmers Branch   TX    75244
1900    8585 S. Yosemite St.    Lone Tree   CO    80124
1910    44075 W 12 Mile Rd    Novi   MI    48377
1903    14453 Hall Rd    Sterling Heights (Shelby)   MI    48315

 

4


Schedule 1.1(c)

PR DEALER LOCATIONS

 

Unit Number    Address
2707    Carretera No. 2 Barrio Candelaria KM 18.3, Toa Baja, PR 00949
3224    Carretera No. 2 Km 110.3, Isabela, PR 00662
3299    Road 111 km. 15.6, Bo Hato Arriba, San Sebastian, PR 00685
3714    KM 2.8 Bo Quebradillas, RD # 152, Barranquitas, PR 00794
6546    Ferram Plaza, RD#2 KM125.1, Int RD#459, Aguadilla, PR 00603
7735    Carr. 167 Esq. 199, Rexville Town Center, Space 048, Bayamon, PR 00956
7765    El Trigal Plaza Shopping Center, Road #2 Int. Road 149, Manati, PR 00674
9278    Carr. PR-3 Int PR 956 KM 24.5, Barrio Guzman Abajo, Rio Grande, PR 00745
9741    Local #10 Quatro Calles Shop CTR 200Carretera 116 STE, Yauco, PR 00698
9747    1000 Jesus T. Pinero Ave., Space #5, Cayey, PR 00736
9976    475 Carr #3 Suite 6, Humacao, PR 00791

 


Schedule 1.1(d)

PR OUTLET LOCATIONS

 

Unit Number    Address
4595    Carr. 176 K.M. 0.3, PR 00926

 

2


Schedule 1.1(e)

CERTAIN REAL ESTATE LOCATIONS

(i) Hometown Stores

 

Current “S” numbers and “D”
numbers are identical

  

CITY

  

STATE

  

Tenant Entity

under Lease

  

Lease/Own/GL

  

Manner of Transfer

- A, S, NL, D/O

S7363 (prior D7220)    Pell City    AL    KMART CORP.    Dealer Inside Leased
Kmart # 4769
   N/A
S1829    Goodyear    AZ    SAHS    Leased    N/A
S7537    Phoenix    AZ    SAHS    Leased    N/A
S9080 (prior D3008)    Chandler    AZ    SAHS    Leased    N/A
S5889 (prior D3499)    Freedom    CA    KMART CORP.    Dealer Inside G/L
Kmart # 3725
   N/A
S4718    Chino    CA    SAHS    Leased    N/A
S9295    Rancho Santa Margarita    CA    SAHS    Leased    N/A
S9286    Alhambra    CA    SAHS    Leased    N/A
S5312    Colorado Spgs    CO    KMART    Dealer Inside Leased
Kmart # 7572
   N/A
S7497    Superior    CO    SAHS    Leased    N/A

 

3


Current “S” numbers and “D”
numbers are identical

  

CITY

  

STATE

  

Tenant Entity

under Lease

  

Lease/Own/GL

  

Manner of Transfer

- A, S, NL, D/O

S1444    Norwalk    CT    SAHS    Leased    N/A
S7703    Stamford    CT    SAHS    Leased    N/A
S2202    Washington (Tenleytown)    DC    SRC    Leased    SUBLEASE
S6581 (prior D3815)    Inverness    FL    KMART CORP.    Dealer Inside Leased
Kmart # 9793
   N/A
S5321    Zephyrhills    FL    KMART CORP.    Dealer Inside Leased
Kmart # 3761
   N/A
S2566    Largo    FL    SAHS    Leased    N/A
S2925    Tampa (Carrollwood)    FL    SAHS    Leased    N/A
S2235    Lake Worth    FL    SAHS    Leased    N/A
S7565    Lauderhill    FL    SAHS    Leased    N/A
S7557    Coral Springs    FL    SAHS    Leased    N/A
S2785    Miami    FL    SAHS    Leased    N/A
S9073 (prior D3005)    Snellville    GA    SAHS    Leased    N/A

 

4


Current “S” numbers and “D”
numbers are identical

  

CITY

  

STATE

  

Tenant Entity

under Lease

  

Lease/Own/GL

  

Manner of Transfer

- A, S, NL, D/O

S9242 (prior D3034)    Conyers    GA    SAHS    Leased    N/A
S9472 (prior D3096)    Lawrenceville    GA    SAHS    Leased    N/A
S9077 (prior D3015)    Cumming (Suwanee)    GA    SAHS    Leased    N/A
S9227 (prior D3004)    Cumming    GA    SAHS    Leased    N/A
S9504 (prior D3116)    McDonough    GA    SAHS    Leased    N/A
S7569    Hiram    GA    SAHS    Leased    N/A
S1816    Lilburn    GA    SAHS    Leased    N/A
S5498 (prior D3085)    Dekalb    IL    SAHS    Leased    N/A
S3099    Macomb    IL    N/A    Dealer Inside Owned
Kmart # 4781
   N/A
S7860    South Elgin    IL    SAHS    Leased    N/A
S1861    North Aurora    IL    SAHS    Leased    N/A
S1860    Oswego    IL    SAHS    Leased    N/A

 

5


Current “S” numbers and “D”
numbers are identical

  

CITY

  

STATE

  

Tenant Entity

under Lease

  

Lease/Own/GL

  

Manner of Transfer

- A, S, NL, D/O

S7674    St Charles    IL    SAHS    Leased    N/A
S5303    Leavenworth    KS    N/A    Dealer Inside Owned
Kmart # 9647
   N/A
S2194    Laurel    MD    SAHS    Leased    N/A
S4702 (prior D3232)    Manistee    MI    N/A    Dealer Inside Owned
Kmart # 4845
   N/A
S1931    Woodbury    MN    SAHS    Leased    N/A
S1940    Maple Grove    MN    SAHS    Leased    N/A
S1821    Eagan    MN    SAHS    Leased    N/A
S2192    Lino Lakes    MN    SAHS    Leased    N/A
S6908    Crystal City    MO    SAHS    Dealer Inside Leased
Kmart # 9353
   N/A

 

6


Current “S” numbers and “D”
numbers are identical

  

CITY

  

STATE

  

Tenant Entity

under Lease

 

Lease/Own/GL

  

Manner of Transfer

- A, S, NL, D/O

S1801    Arnold    MO    SRC   Leased    SUBLEASE
S1806    St Charles    MO    SAHS   Leased    N/A
S1803    Manchester    MO    SAHS   Leased    N/A
S2930    Wentzville    MO    SAHS   Leased    N/A
S1741    Rock Hill    MO    SAHS   Leased    N/A
S2634    Charlotte (Northlake)    NC    SAHS   Leased    N/A
S2713    Huntersville    NC    SAHS   Leased    N/A
S2004    Knightdale - Sears lease EXPIRED    NC    Mecklenburg
Wireless LLC*
  Leased    N/A
S5455 (prior D3033)    Claremont    NH    KMART
CORP.
  Dealer Inside Leased
Kmart # 3569
   N/A

 

7


Current “S” numbers and “D”
numbers are identical

  

CITY

  

STATE

  

Tenant Entity

under Lease

  

Lease/Own/GL

  

Manner of Transfer

- A, S, NL, D/O

S9668    Clifton    NJ    SAHS    Leased    N/A
S4661    S Plainfield    NJ    SAHS    Leased    N/A
S9666    Brick    NJ    SAHS    Leased    N/A
S7172    Turnesville    NJ    SAHS    Leased    N/A
S1483    Mt Kisco    NY    SAHS    Leased    N/A
S1928    Mansfield    TX    SAHS    Leased    N/A
S1936    Flower Mound    TX    SAHS    Leased    N/A
S1937    McKinney    TX    SAHS    Leased    N/A
S1819    Rowlett    TX    SAHS    Leased    N/A
S7391    Conroe    TX    SAHS    Leased    N/A
S7379    Cypress    TX    SAHS    Leased    N/A
S7403 (prior D7389)    Humble    TX    SAHS    Leased    N/A

 

8


Current “S” numbers and “D”
numbers are identical

  

CITY

  

STATE

  

Tenant Entity

under Lease

  

Lease/Own/GL

  

Manner of Transfer

- A, S, NL, D/O

S1859    Houston (Wallisville Rd)    TX    SAHS    Leased    N/A
S1938    Pearland    TX    SAHS    Leased    N/A
S1858    Burleson    TX    SAHS    Leased    N/A
S1808    Houston (Katy Hwy)    TX    SAHS    Leased    N/A
S1965    Pasadena    TX    SAHS    Leased    N/A
S1857    League City    TX    SAHS    Leased    N/A
S1811    Euless    TX    SAHS    Leased    N/A
S1809    Tomball    TX    SAHS    Leased    N/A
S7567    Cedar Hill    TX    SAHS    Leased    N/A
S1856    Ft. Worth    TX    SAHS    Leased    N/A
S7178    Sugar Land    TX    SAHS    Leased    N/A
S2426    Woodbridge    VA    SAHS    Leased    N/A

 

9


Current “S” numbers and “D”
numbers are identical

  

CITY

  

STATE

  

Tenant Entity

under Lease

  

Lease/Own/GL

  

Manner of Transfer

- A, S, NL, D/O

S7693    Stafford    VA    SAHS    Leased    N/A
S6856    Plymouth    WI    KMART CORP.    Dealer Inside Leased
Kmart # 3831
   N/A
S9291    Delafield    WI    SAHS    Leased    N/A
S9292    Mequon    WI    SAHS    Leased    N/A

 

10


(ii) Outlet Stores

 

City

  

State

  

Own/Lease/
Embedded

  

Type of

Unit

  

Ownership

of

Embedded

Unit

  

Tenant Entity
under the Lease

  

Manner of
Transfer

Holyoke

   MA    Embedded    Kmart    Owned    N/A    LEASE

Cudahy

   WI    Embedded    Kmart    Owned    N/A    LEASE

Shoreline

   WA    Embedded    FLS    Owned    N/A    LEASE

Henderson

   NV    Embedded    Kmart    Owned    N/A    LEASE

Raleigh

   NC    Embedded    Kmart    Owned    N/A    LEASE

Greensboro

   NC    Embedded    Kmart    Owned    N/A    LEASE

Concord

   NC    Embedded    Kmart    Owned    N/A    LEASE

Norfolk

   VA    Embedded    Kmart    Owned    N/A    LEASE

St. Petersburg

   FL    Embedded    PRS    Owned    N/A    LEASE

Jacksonville

   FL    Embedded    PRS    Owned    N/A    LEASE

Nashville

   TN    Embedded    PRS    Owned    N/A    LEASE

 

11


City

  

State

  

Own/Lease/
Embedded

  

Type of

Unit

  

Ownership

of

Embedded

Unit

  

Tenant Entity
under the Lease

  

Manner of
Transfer

Sparks

   NV    Embedded    PRS    Owned    N/A    LEASE

San Juan

   PR    Embedded    RRC    Owned    N/A    LEASE

San Diego

   CA    Embedded    SLS    Owned    N/A    LEASE

Santa Ana

   CA    Embedded    SLS    Owned    N/A    LEASE

Newington

   CT    Embedded    SLS    Owned    N/A    FEE TRANSFER

Winter Park

   FL    Embedded    SLS    Owned    N/A    LEASE

Pittsburgh

   PA    Embedded    SLS    Owned    N/A    LEASE

Richmond

   VA    Embedded    SLS    Owned    N/A    LEASE

Melrose Park

   IL    Embedded    SLS    Owned    N/A    LEASE

West Haven

   CT    Embedded    SLS    Owned    N/A    FEE TRANSFER

Minneapolis

   MN    Embedded    SLS    Owned    N/A    LEASE

 

12


City

  

State

  

Own/Lease/
Embedded

  

Type of

Unit

  

Ownership

of

Embedded

Unit

  

Tenant Entity
under the Lease

  

Manner of
Transfer

Houston

   TX    Embedded    SLS    Owned    N/A    LEASE

Denver

   CO    Embedded    SLS    Owned    N/A    LEASE

Pearl City

   HI    Embedded    SLS    Owned    N/A    LEASE

Tucker

   GA    Embedded    SLS    Owned    N/A    LEASE

Newark

   DE    Embedded    SLS    Owned    N/A    LEASE

Phoenix

   AZ    Embedded    UUP    Owned    N/A    LEASE

San Leandro

   CA    Embedded    UUP    Owned    N/A    FEE TRANSFER

Woodstock

   IL    Embedded    UUP    Owned    N/A    FEE TRANSFER

Hayward

   CA    Embedded    UUP    Owned    N/A    LEASE

Wauwatosa

   WI    Embedded    Kmart    Leased    KMART CORP.;
licensed to S.O.S.
   SUBLEASE

West Covina

   CA    Embedded    Kmart    Leased    KMART CORP.;
licensed to S.O.S.
   SUBLEASE

 

13


City

  

State

  

Own/Lease/
Embedded

  

Type of

Unit

  

Ownership

of

Embedded

Unit

  

Tenant Entity
under the Lease

  

Manner of
Transfer

Portland

   OR    Embedded    Kmart    Leased    KMART CORP.;
licensed to S.O.S.
   SUBLEASE

Tampa

   FL    Embedded    Kmart    Leased    KMART CORP.;
licensed to S.O.S.
   SUBLEASE

Bridgeview

   IL    Embedded    Kmart    Leased    Kmart Stores of
Illinois, LLC;
licensed to S.O.S.
   SUBLEASE

Chesapeake

   VA    Embedded    Kmart    Leased    KMART CORP.    SUBLEASE

N Miami Beach

   FL    Embedded    Kmart    Leased    KMART CORP.;
licensed to S.O.S.
   SUBLEASE

Miami

   FL    Embedded    Kmart    Leased    S.O.S., license
agreement
   SUBLEASE

Bloomfield Hills

   MI    Embedded    Kmart    Leased    KMART CORP.;
assigned to Kmart
of Michigan, Inc.
, short form
assignment
   N/A

Sacramento

   CA    Embedded    RRC    Leased    SRC; licensed to
S.O.S. (document
not in Live Link -
See 9/7/08
assignment)
   SUBLEASE

Kansas City

   MO    Embedded    SLS    Leased    S.O.S., license
agreement
   SUBLEASE

Livonia

   MI    Embedded    SLS    Leased    SRC; licensed to
S.O.S.
   FEE TRANSFER

Hendersonville

   TN    Embedded    UUP    Leased    SRC; licensed to
S.O.S.
   SUBLEASE

 

14


City

  

State

  

Own/Lease/
Embedded

  

Type of

Unit

  

Ownership

of

Embedded

Unit

  

Tenant Entity
under the Lease

  

Manner of
Transfer

Marietta

   GA    Embedded    UUP    Leased    KMART CORP.    SUBLEASE

Perrysburg

   OH    Embedded    UUP    Leased    KMART CORP.    SUBLEASE

Lenexa

   KS    Embedded    UUP    Leased    KMART CORP.    SUBLEASE

Norristown

   PA    Embedded    UUP    Leased    KMART CORP.;    SUBLEASE

Brea

   CA    Embedded    UUP    Leased    SRC; licensed to
S.O.S.
   SUBLEASE

Torrance

   CA    Embedded    UUP    Leased    SRC    SUBLEASE

Baltimore

   MD    Embedded    UUP    Leased    SRC    SUBLEASE

Deptford

   NJ    Leased    SEARS    LEASED    SRC    SUBLEASE

West Babylon

   NY    Embedded    Kmart    GL    N/A    SUBLEASE

Portage

   IN    Embedded    Hdw    GL    SRC    N/A -
LOCATION IS
CONTROLLED
BY HARDWARE

Tucson

   AZ    Embedded    Kmart    GL    KMART CORP.    SUBLEASE

Engelwood

   CO    Embedded    Kmart    GL    KMART CORP.    SUBLEASE

 

15


City

  

State

  

Own/Lease/
Embedded

  

Type of

Unit

  

Ownership

of

Embedded

Unit

  

Tenant Entity
under the Lease

  

Manner of
Transfer

Corona

   CA    Leased    —      —      S.O.S., license
agreement
   SUBLEASE

Tacoma

   WA    Leased    —      —      SRC    SUBLEASE

Clearwater

   FL    Leased    —      —      S.O.S., short form
assignment
   N/A

Bridgeville

   PA    Leased    —      —      S.O.S., short form
assignment
   N/A

Grapevine

   TX    Leased    —      —      S.O.S., short form
assignment
   N/A

Tempe

   AZ    Leased    —      —      S.O.S., short form
assignment
   N/A

Prince William

   VA    Leased    —      —      S.O.S., short form
assignment
   N/A

Voorhees

   NJ    Leased    —      —      SRC    SUBLEASE

Darien

   IL    Leased    —      —      S.O.S., short form
assignment
   N/A

Coon Rapids

   MN    Leased    —      —      SRC, assigned to
S.O.S., short form
assignment
   N/A

Carrollton

   TX    Leased    —      —      S.O.S., short form
assignment
   N/A

 

16


City

  

State

  

Own/Lease/
Embedded

  

Type of

Unit

  

Ownership

of

Embedded

Unit

  

Tenant Entity
under the Lease

  

Manner of
Transfer

Rancho Cordova

   CA    Leased    —      —      SRC    SUBLEASE

Fenton

   MO    Leased    —      —      S.O.S., short form
assignment
   N/A

Columbus

   OH    Leased    —      —      SRC; assigned to
S.O.S. , short
form not used
   N/A

Franklin Mills

   PA    Leased    —      —      S.O.S., short form
assignment
   N/A

Hazelwood

   MO    Leased    —      —      S.O.S., short form
assignment
   N/A

Milpitas

   CA    Leased    —      —      S.O.S., short form
assignment
   N/A

Fall River

   MA    Leased    —      —      SRC; assigned to
S.O.S. , short
form assignment
   N/A

Ontario

   CA    Leased    —      —      S.O.S., short form
assignment
   N/A

Reynoldsburg

   OH    Leased    —      —      S.O.S., lease    N/A

McHenry

   IL    Leased    —      —      SRC    SUBLEASE

Hixson

   TN    Leased    —      —      S.O.S., short form
assignment
   N/A

 

17


City

  

State

  

Own/Lease/
Embedded

  

Type of

Unit

  

Ownership

of

Embedded

Unit

  

Tenant Entity
under the Lease

  

Manner of
Transfer

Corona

   CA    Leased    —      —      S.O.S., license
agreement
   SUBLEASE

West Orange

   NJ    Leased    —      —      S.O.S., short form
assignment
   N/A

Deland

   FL    Leased    —      —      S.O.S., short form
assignment
   N/A

Gilbert

   AZ    Leased    —      —      S.O.S., lease    N/A

Oceanside

   CA    Leased    —      —      S.O.S., lease    N/A

Willoughby

   OH    Leased    —      —      S.O.S., short form
assignment
   N/A

North Olmsted

   OH    Leased
(Subleased)
   —      —      SRC    SUBLEASE

Rome

   NY    Leased    —      —      S.O.S., short form
assignment
   N/A

Orem

   UT    Leased    —      —      SRC    SUBLEASE

Greenville

   SC    Leased    —      —      SRC; assigned to
S.O.S. , short
form assignment
   N/A

Westminster

   CO    Leased    —      —      S.O.S., lease    N/A

Morrow

   GA    Leased    —      —      S.O.S., short form
assignment
   N/A

Taylor

   MI    Leased    —      —      SRC; assigned to
S.O.S. , short
form assignment
   N/A

 

18


City

  

State

  

Own/Lease/
Embedded

  

Type of

Unit

  

Ownership

of

Embedded

Unit

  

Tenant Entity
under the Lease

  

Manner of
Transfer

Charlotte

   NC    Leased    —      —      S.O.S., short form
assignment
   N/A

Dublin

   OH    Leased    —      —      S.O.S., lease    N/A

Cincinnati

   OH    Leased    —      —      S.O.S., lease    N/A

Florence

   KY    Leased    —      —      S.O.S., lease    N/A

Arlington

   TX    Leased    —      —      S.O.S., lease    N/A

Louisville

   KY    Leased    —      —      S.O.S., lease    N/A

River Grove

   IL    Leased    —      —      S.O.S., lease    N/A

Spring

   TX    Leased    —      —      S.O.S., lease    N/A

Speedway

   IN    Leased    —      —      SRC    SUBLEASE

Shrewsbury

   MA    Leased    —      —      S.O.S., short form
assignment
   N/A

Jacksonville

   FL    Leased    —      —      S.O.S., short form
assignment
   N/A

 

19


City

  

State

  

Own/Lease/
Embedded

  

Type of

Unit

  

Ownership

of

Embedded

Unit

  

Tenant Entity
under the Lease

  

Manner of
Transfer

Timonium

   MD    Leased    —      —      S.O.S., short form
assignment
   N/A

Miami

   FL    Leased    —      —      S.O.S., short form
assignment
   N/A

Elgin

   IL    Leased    —      —      SRC    SUBLEASE

Lawrenceville

   GA    Leased    —      —      S.O.S., short form
assignment
   N/A

Wheaton

   MD    Leased    —      —      S.O.S., sublease    N/A

Naperville

   IL    Leased    —      —      S.O.S., lease    N/A

Plainfield

   NJ    Leased    —      —      S.O.S., sublease    N/A

Clackamas

   OR    Leased    —      —      SRC; assigned to
Homelife
Corporation, short
form not used
   SUBLEASE

San Antonio

   TX    Leased    —      —      SRC    SUBLEASE

Austin

   TX    Leased    —      —      S.O.S., sublease    N/A

Monroeville

   PA    Leased    —      —      S.O.S., lease    N/A

 

20


City

  

State

  

Own/Lease/
Embedded

  

Type of

Unit

  

Ownership

of

Embedded

Unit

  

Tenant Entity
under the Lease

  

Manner of
Transfer

Tinley Park

   IL    Leased    —      —      S.O.S., lease    N/A

Carmel Mountain

   CA    Leased          Kmart    Sublease to Outlet
at no rent but w/ 6
month termination
right

El Monte

   CA    Leased          Kmart    Sublease to Outlet
at no rent but w/ 6
month termination
right

Sterling Hts/Shelby Township

   MI    Embedded    UUP    GL    SRC    1 YEAR
LICENSE
AGREEMENT

Novi

   MI    Leased             1 YEAR
LICENSE
AGREEMENT

Lone Tree

   CO    Leased             1 YEAR
LICENSE
AGREEMENT

Farmers Branch

   TX    Leased             1 YEAR
LICENSE
AGREEMENT

 

21


(iii) Hardware Stores

 

Unit

  

CITY

  

ST

  

SHC Format

  

Owned / Leased

  

Tenant Entity
under the Lease

  

Manner of Transfer
- A, S, NL, D/O

S5044    Vernon    CT    Hardware    LEASED    SRC    closing 8/19/12;
lease exp 11/5/12
SUBLEASE
S5154    Wallingford    CT    Hardware    LEASED    SRC    SUBLEASE
S5484    Shelton    CT    Hardware    LEASED    SRC    SUBLEASE
S5814    Bristol    CT    Hardware    LEASED    SRC    SUBLEASE
S5843    Newark    DE    Franchise    LEASED    SRC    SUBLEASE
S5472    Batavia/Windmill lakes    IL    Franchise    LEASED    SRC    SUBLEASE
S5130    Edwardsville    IL    Franchise    LEASED    SRC    SUBLEASE
S5320    Collinsville    IL    Franchise    LEASED    SRC    SUBLEASE
S5371    Belleville    IL    Franchise    LEASED    SRC    SUBLEASE
S5351    Orland Park    IL    Hardware    LEASED    SRC    SUBLEASE
S5360    Alsip    IL    Hardware    LEASED    SRC    SUBLEASE
S5702    Bolingbrook    IL    Hardware    LEASED    SRC    SUBLEASE

 

22


Unit

  

CITY

  

ST

  

SHC Format

  

Owned / Leased

  

Tenant Entity
under the Lease

  

Manner of Transfer
- A, S, NL, D/O

S5772    Lake Zurich    IL    Hardware    LEASED    SRC    SUBLEASE
S7073
5050
   Downers Grove    IL    Hardware    LEASED    SRC    SUBLEASE
S5157    Portage    IN    Hardware    LEASED    SRC    SUBLEASE
S5291    Schererville    IN    Hardware    LEASED    SRC    SUBLEASE
S5340    Fishers    IN    Hardware    LEASED    SRC    SUBLEASE
S7053    Beech Grove (S#5031)    IN    Hardware    LEASED    SRC    SUBLEASE
S7072
5041
   Valparaiso    IN    Hardware    LEASED    SRC    SUBLEASE
S8794    Avon    IN    Hardware    LEASED    SRC    SUBLEASE
S5274    Fairhaven    MA    franchise    LEASED    SRC    SUBLEASE
S5353    Ashland    MA    franchise    LEASED    SRC    SUBLEASE
S7242    North Reading    MA    Hardware    LEASED    SRC    SUBLEASE
S8971    Chelmsford    MA    Franchise    LEASED    SRC    SUBLEASE
S9522    Holland    MI    Franchise    LEASED    SAHS    SUBLEASE
S5171    Florissant    MO    Franchise    LEASED    SRC    SUBLEASE

 

23


Unit

  

CITY

  

ST

  

SHC Format

  

Owned / Leased

  

Tenant Entity
under the Lease

  

Manner of Transfer
- A, S, NL, D/O

S5900    St Louis Telegraph    MO    Franchise    LEASED    SRC    Landlord exercised
early termination
option/store closing
SUBLEASE
S5392    High Ridge    MO    Franchise    LEASED    SRC    SUBLEASE
S5331    O’Fallon    MO    Franchise    LEASED    SRC    SUBLEASE
S5124    Newton    NJ    Franchise    LEASED    SRC    SUBLEASE
S5134    Cedar Knolls    NJ    franchise    LEASED    SRC    SUBLEASE
S5173    West Caldwell    NJ    Hardware    LEASED    SRC    SUBLEASE
S5243    Glassboro    NJ    Franchise    LEASED    SRC    SUBLEASE
S5344    Berlin    NJ    Hardware    LEASED    SRC    SUBLEASE
S5394    Bergenfield    NJ    Hardware    LEASED    SRC    SUBLEASE
S5473    Roselle    NJ    Franchise    LEASED    SRC    SUBLEASE
S5804    West Milford/Hewitt    NJ    Franchise    LEASED    SRC    SUBLEASE
S5874    Howell    NJ    Franchise    LEASED    SRC    SUBLEASE

 

24


Unit

  

CITY

  

ST

  

SHC Format

  

Owned / Leased

  

Tenant Entity
under the Lease

  

Manner of Transfer
- A, S, NL, D/O

S5902    Midland Park    NJ    Franchise    LEASED    SRC    SUBLEASE
S5133    Queens Village    NY    Hardware    LEASED    SRC    SUBLEASE
S5153    Patchogue    NY    Hardware    LEASED    SRC    SUBLEASE
S5183    Lindenhurst    NY    Hardware    LEASED    SRC    closed 6/5/12
S5403    Hauppauge    NY    Hardware    LEASED    SRC    closed 5/13/12; lease
exp 9/12/12
S5483    Deer Park/North Babylon    NY    Hardware    LEASED    SRC    closed 5/13/12; lease
exp 8/23/12
S5523    Port Jefferson    NY    Hardware    LEASED    SRC    SUBLEASE
S5873    Tonawanda    NY    Hardware    LEASED    SRC    SUBLEASE
S5904    Oneida    NY    Hardware    LEASED    SRC    SUBLEASE
S5914    Shirley    NY    Hardware    LEASED    SRC    SUBLEASE
S8798
5003
   Westvale/Syracuse    NY    Hardware    LEASED    SRC    closing 8/12
S8927
5073
   Lockport    NY    Hardware    LEASED    SRC    SUBLEASE
S8978
5104
   Lake Ronkonkoma    NY    Hardware    LEASED    SRC    closing 9/21/12 SUBLEASE

 

25


Unit

  

CITY

  

ST

  

SHC Format

  

Owned / Leased

  

Tenant Entity
under the Lease

  

Manner of Transfer
- A, S, NL, D/O

S5210    Macedonia    OH    Franchise    LEASED    SRC    Lease expired
S5354    Medina    OH    Franchise    LEASED    SRC    SUBLEASE
S5871    Parma    OH    Franchise    LEASED    SRC    SUBLEASE
S5341    Bainbridge    OH    Franchise    LEASED    SRC    SUBLEASE
S8955    Canton (5081)    OH    Franchise    LEASED    SRC    SUBLEASE
S5810    Austintown (Youngstown)    OH    Franchise    LEASED    SRC    SUBLEASE
S5091    Lorain    OH    Franchise    LEASED    SRC    SUBLEASE
S5120    Sheffield/Elyria    OH    Franchise    LEASED    SRC    SUBLEASE
S5301    Henderson    OH    Hardware    LEASED    SRC    SUBLEASE
S5401    Westerville    OH    Hardware    LEASED    SRC    SUBLEASE
S5411    Fairlawn    OH    Franchise    LEASED    SRC    SUBLEASE
S5481    Hilliard    OH    Hardware    LEASED    SRC    SUBLEASE
S5502    Landen (Loveland)    OH    Hardware    LEASED    SRC    SUBLEASE
S7051
/ 5022
   North Olmsted    OH    Franchise    LEASED    Leased    Sublease

 

26


Unit

  

CITY

  

ST

  

SHC Format

  

Owned / Leased

  

Tenant Entity
under the Lease

  

Manner of Transfer
- A, S, NL, D/O

S5564    Pickerington    OH    Hardware    LEASED    SRC    SUBLEASE
S8921
5062
   Kettering    OH    Hardware    LEASED    SRC    SUBLEASE
S8952
5080
   Fairfield    OH    Hardware    LEASED    SRC    SUBLEASE
S5474    Allison Park    PA    Franchise    LEASED    SRC    SUBLEASE
S5083    Easton    PA    Franchise    LEASED    SRC    SUBLEASE
S5113    City Line Ave/Philly    PA    Hardware    LEASED    SRC    closing 8/19/12;
lease exp 12/31/12
S5123    Quakertown    PA    Franchise    LEASED    SRC    SUBLEASE
S5164    Trexlertown    PA    Franchise    LEASED    SRC    SUBLEASE
S5213    Kennett Sq    PA    Franchise    LEASED    SRC    SUBLEASE
S5284    Doylestown    PA    franchise    LEASED    SRC    SUBLEASE
S5293    Huntingdon Vally    PA    franchise    LEASED    SRC    SUBLEASE
S5604    Collegeville    PA    franchise    LEASED    SRC    SUBLEASE
S5923    Morrisville    PA    Hardware    LEASED    SRC    SUBLEASE

 

27


Unit

  

CITY

  

ST

  

SHC Format

  

Owned / Leased

  

Tenant Entity
under the Lease

  

Manner of Transfer
- A, S, NL, D/O

S5934    Kenhorst    PA    Hardware    LEASED    SRC    SUBLEASE
S5980    Phoenixville    PA    franchise    LEASED    SRC    SUBLEASE
S5033    Fairless Hills    PA    franchise    LEASED    SRC    SUBLEASE
S5247    Sugarland    TX    Franchise    LEASED    SRC    SUBLEASE
S5246    Katy    TX    Franchise    LEASED    SRC    SUBLEASE
S5457    Houston/Hwy 6 N    TX    Franchise    LEASED    SRC    SUBLEASE
S5086    Fuqua Rd/Houston    TX    Franchise    LEASED    SRC    SUBLEASE
S5195    Houston/Jones Rd    TX    Franchise    LEASED    SRC    SUBLEASE
S5196    Spring    TX    Franchise    LEASED    SRC    SUBLEASE
S8925    Pasadena    TX    Franchise    LEASED    SRC    Lease expired -
franchise has a direct
deal with landlord
S5087    Kingwood    TX    Hardware    LEASED    SRC    Sublease
S5736    The Woodlands    TX    franchise    LEASED    SRC    SUBLEASE
S5184    Herndon    VA    franchise    LEASED    SRC    SUBLEASE

 

28


Unit

  

CITY

  

ST

  

SHC Format

  

Owned / Leased

  

Tenant Entity
under the Lease

  

Manner of Transfer
- A, S, NL, D/O

S5774    Centreville    VA    Franchise    LEASED    SRC    SUBLEASE
S5471    Germantown    WI    Hardware    LEASED    SRC    SUBLEASE
S5223    Norristown    PA    Hardware    OWNED    OWNED    SRC leasing to
SAHS till June 2015;
SRC assigning to
SAHS the right to
enter into ground
leases for the
property after
6/2015.
S5954    Windham/Willimantic    CT    Hardware    OWNED    OWNED
AS OF
6/30/2000
   DEED

 

29