EX-10.4 2 srg-ex104_642.htm EX-10.4 srg-ex104_642.htm

 

Exhibit 10.4

SERITAGE GROWTH PROPERTIES

July 7, 2015

Sears Holdings Corporation

3333 Beverly Road

Hoffman Estates, Illinois 60179

Ladies and Gentlemen:

Reference is made to that certain Master Lease of even date herewith (the “Master Lease”) by and among Seritage SRC Finance LLC and Seritage KMT Finance LLC (together with their successors and assigns, collectively, jointly and severally, “Landlord”), and Kmart Operations LLC (“Kmart Tenant”) and Sears Operations LLC (“Sears Tenant”) (together with their permitted successors and assigns, collectively, jointly and severally, Tenant”).

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

 

1.

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

 

2.

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

 

3.

Schedule 2: Base Rent Adjustment.

 

4.

Schedule 4.5: Installment Expenses.

 

5.

Schedule 10.1 Deferred Maintenance

 

6.

Schedule 20.3 Initial Environmental Remediation

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

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

[signature page follows]

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

 

 

 

 


 

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

 

Tenant:

 

KMART OPERATIONS LLC

 

By:

 

                                                                       

Name:

 

 

Title:

 

 

 

SEARS OPERATIONS LLC

 

By:

 

                                                                       

Name:

 

 

Title:

 

 

 

Landlord:

 

SERITAGE KMT FINANCE LLC

 

 

 

By:

 

                                                                       

Name:

 

 

Title:

 

 

 

SERITAGE SRC FINANCE LLC

 

By:

 

                                                                       

Name:

 

 

Title:

 

 

(Master Lease Side Letter)

 

 

 

 


 

SCHEDULE 1.7(C)

PRELIMINARY RECAPTURE PLANS

 

[**]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 


 

SCHEDULE 1.9

100% Recapture Property Termination Fees

(Fixed Element of Calculation)

 

 

Site

Type

City

State

As Leased

Market Value

Go Dark

Value*

Amount in

Section

1.9(a)(iv)(A)

of Master

Lease

1

1089

Sears

Anchorage

AK

[**]

2

1398

Sears

San Bernardino

CA

3

1178

Sears

Santa Monica

CA

4

1608

Sears

Westminster

CA

5

1063

Sears

West Hartford

CT

6

1645

Sears

Boca Raton

FL

7

1655

Sears

Miami

FL

8

1365

Sears

Miami

FL

9

4295

Kmart

North Miami

FL

10

1225

Sears

Orlando

FL

11

1295

Sears

St Petersburg

FL

12

1305

Sears

Savannah

GA

13

7480

Kmart

Honolulu

HI

14

3879

Kmart

Braintree

MA

15

4177

Kmart

St. Clair Shores

MI

16

1052

Sears

St Paul

MN

17

1574

Sears

Middletown

NJ

18

1294

Sears

Watchung

NJ

19

1264

Sears

Hicksville

NY

20

1186

Sears

Memphis

TN

21

1057

Sears

Valley View

TX

TOTAL

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

 

 

 

 


 

Schedule 2

Base Rent Adjustment

As of Commencement Date

 

 

Site

Type

City

State

SHC SF

SHC Base

Rent

Adjustment

Lands’

End SF

Lands’ End

Rent

Total SHC

and Lands’

End SF

Total Base

Rent

Adjustment

Plus Lands’

End Rent

Occurrence

of Multi-

Tenancy

Occupancy

Date

(Y/N)

Total SF

(including all

third-party

leases)

Tenant’s

Proportionate

Share **

1

1089

Sears

Anchorage

AK

204,149

[**]

7,930

[**]

Y

257,948

[**]

2

9571

Kmart

Cullman

AL

98,522

0

N

98,522

3

1206

Sears

North Little Rock

AR

185,718

0

N

185,718

4

9711

Kmart

Russellville

AR

88,032

0

N

88,032

5

2358

Sears

Flagstaff

AZ

66,162

0

N

66,162

6

1078

Sears

Mesa

AZ

121,911

0

N

121,911

7

1708

Sears

Phoenix

AZ

144,228

0

N

144,228

8

2218

Sears

Prescott

AZ

102,338

0

N

102,338

9

2047

Sears

Sierra Vista

AZ

94,707

0

N

94,707

10

3695

Kmart

Sierra Vista

AZ

86,079

0

N

86,079

11

1338

Sears

Tucson

AZ

250,096

0

N

250,096

12

2078

Sears

Yuma

AZ

90,376

0

N

90,376

13

4762

Kmart

Antioch

CA

95,165

0

N

95,165

14

7653

Kmart

Big Bear Lake

CA

69,288

0

Y

80,008

15

1568

Sears

Carson

CA

163,440

0

Y

194,547

16

1358

Sears

Chula Vista

CA

250,092

0

N

250,092

17

1538

Sears

Citrus Heights

CA

280,714

8,827

N

289,541

18

3945

Kmart

Delano

CA

86,079

0

N

86,079

19

1438

Sears

El Cajon

CA

275,670

6,511

Y

286,481

20

1988

Sears

El Centro

CA

139,738

0

N

139,738

21

1159

Sears

Fairfield

CA

159,278

4,848

N

164,126

22

1408

Sears

Florin

CA

272,691

0

N

272,691

23

1208

Sears

Fresno

CA

217,566

0

N

217,566

24

7390

Kmart

McKinleyville

CA

94,774

0

N

94,774

25

2298

Sears

Merced

CA

92,624

0

N

92,624

26

1748

Sears

Montclair

CA

174,675

0

N

174,675

27

1868

Sears

Moreno Valley

CA

169,371

0

N

169,371

28

1698

Sears

Newark

CA

145,801

0

N

145,801

29

1168

Sears

North Hollywood

CA

150,982

0

N

150,982

30

1508

Sears

Northridge

CA

256,917

0

Y

291,767

*

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

**

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

 

Schedule 2 Base Rent Adjustment - 1


 

 

Site

Type

City

State

SHC SF

SHC Base

Rent

Adjustment

Lands’

End SF

Lands’ End

Rent

Total SHC

and Lands’

End SF

Total Base

Rent

Adjustment

Plus Lands’

End Rent

Occurrence

of Multi-

Tenancy

Occupancy

Date

(Y/N)

Total SF

(including all

third-party

leases)

Tenant’s

Proportionate

Share **

31

1968

Sears

Palm Desert

CA

151,458

[**]

0

[**]

N

151,458

[**]

32

3678

Kmart

Ramona

CA

86,988

0

Y

107,470

33

1298

Sears

Riverside

CA

202,030

0

Y

214,230

34

4432

Kmart

Riverside

CA

94,500

0

Y

132,632

35

1156

Sears

Roseville

CA

131,425

7,565

N

138,990

36

1688

Sears

Salinas

CA

132,974

0

N

132,974

37

1398

Sears

San Bernardino

CA

264,682

0

N

264,682

38

1478

Sears

San Bruno

CA

267,896

8,698

Y

276,594

39

1648

Sears

San Diego

CA

164,830

9,818

Y

228,724

40

1488

Sears

San Jose

CA

262,491

0

N

262,491

41

2308

Sears

Santa Cruz

CA

105,769

5,709

Y

119,576

42

2088

Sears

Santa Maria

CA

108,596

0

N

108,596

43

1178

Sears

Santa Monica

CA

111,983

5,818

N

117,801

44

7639

Kmart

Santa Paula

CA

71,257

0

N

71,257

45

1108

Sears

Temecula

CA

115,636

0

N

115,636

46

2318

Sears

Thousand Oaks

CA

50,334

0

Y

164,040

47

1148

Sears

Ventura

CA

171,874

6,691

N

178,565

48

2068

Sears

Visalia

CA

75,570

0

N

75,570

49

1189

Sears

West Covina

CA

142,000

0

N

142,000

50

1608

Sears

Westminster

CA

197,904

0

N

197,904

51

1071

Sears

Lakewood

CO

153,000

0

Y

153,000

52

4917

Kmart

Thornton

CO

190,174

0

N

190,174

53

1193

Sears

Waterford

CT

141,756

7,484

N

149,240

54

1063

Sears

West Hartford

CT

186,904

7,481

Y

202,072

55

7725

Kmart

Rehoboth Beach

DE

117,162

0

Y

122,162

56

1355

Sears

Altamonte Springs

FL

205,628

0

Y

214,357

57

1645

Sears

Boca Raton

FL

167,637

6,696

Y

178,547

58

2565

Sears

Bradenton

FL

99,946

0

N

99,946

59

7321

Kmart

Bradenton

FL

82,938

0

N

82,938

60

1415

Sears

Clearwater

FL

129,693

6,012

Y

211,739

61

1715

Sears

Doral

FL

212,884

0

N

212,884

62

1495

Sears

Ft. Myers

FL

146,792

0

N

146,792

63

1665

Sears

Gainesville

FL

140,529

0

N

140,529

64

1345

Sears

Hialeah

FL

184,442

0

Y

197,453

65

4292

Kmart

Hialeah

FL

88,390

0

Y

106,390

66

7233

Kmart

Kissimmee

FL

112,505

0

Y

148,885

*

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

**

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

 

Schedule 2 Base Rent Adjustment - 2


 

 

Site

Type

City

State

SHC SF

SHC Base

Rent

Adjustment

Lands’

End SF

Lands’ End

Rent

Total SHC

and Lands’

End SF

Total Base

Rent

Adjustment

Plus Lands’

End Rent

Occurrence

of Multi-

Tenancy

Occupancy

Date

(Y/N)

Total SF

(including all

third-party

leases)

Tenant’s

Proportionate

Share **

67

1955

Sears

Lakeland

FL

156,226

[**]

0

[**]

N

156,226

[**]

68

2245

Sears

Melbourne

FL

102,577

0

N

102,577

69

1365

Sears

Miami

FL

170,122

0

N

170,122

70

1655

Sears

Miami

FL

173,322

0

N

173,322

71

2695

Sears

Naples

FL

151,798

0

Y

161,892

72

4295

Kmart

North Miami

FL

106,305

0

Y

122,250

73

1006

Sears

Ocala

FL

146,236

0

N

146,236

74

1225

Sears

Orlando

FL

197,469

4,531

Y

202,000

75

2805

Sears

Panama City

FL

139,315

0

N

139,315

76

1096

Sears

Pensacola

FL

212,274

0

N

212,274

77

1535

Sears

Plantation

FL

201,596

0

N

201,596

78

1625

Sears

Sarasota

FL

204,453

7,975

N

212,428

79

1295

Sears

St. Petersburg

FL

187,000

0

Y

193,896

80

4355

Kmart

St. Petersburg

FL

120,631

0

N

120,631

81

1385

Sears

Atlanta

GA

218,710

7,587

N

226,297

82

1305

Sears

Savannah

GA

155,684

0

Y

167,284

83

7480

Kmart

Honolulu

HI

77,452

0

N

77,452

84

9220

Kmart

Algona

IA

99,260

0

N

99,260

85

2212

Sears

Cedar Rapids

IA

141,124

4,876

N

146,000

86

7767

Kmart

Charles City

IA

96,569

0

N

96,569

87

9309

Kmart

Webster City

IA

40,800

0

N

40,800

88

1229

Sears

Boise

ID

123,623

0

N

123,623

89

1090

Sears

Chicago

IL

293,718

0

N

293,718

90

1380

Sears

Chicago

IL

356,744

0

N

356,744

91

3594

Kmart

Chicago

IL

118,816

0

Y

168,537

92

1740

Sears

Joliet

IL

204,629

0

N

204,629

93

4297

Kmart

Moline

IL

120,488

0

Y

123,693

94

1212

Sears

North Riverside

IL

203,001

0

N

203,001

95

1750

Sears

Orland Park

IL

192,445

7,154

N

199,599

96

3241

Kmart

Springfield

IL

84,180

0

Y

127,385

97

7289

Kmart

Steger

IL

87,406

0

N

87,406

98

3556

Kmart

Elkhart

IN

86,479

0

N

86,479

99

1830

Sears

Ft. Wayne

IN

213,545

6,455

N

220,000

100

3180

Kmart

Merrillville

IN

108,339

0

Y

173,146

101

9647

Kmart

Leavenworth*

KS

76,853

0

N

83,552

102

1101

Sears

Overland Pk

KS

215,018

8,234

N

223,252

*

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

**

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

 

Schedule 2 Base Rent Adjustment - 3


 

 

Site

Type

City

State

SHC SF

SHC Base

Rent

Adjustment

Lands’

End SF

Lands’ End

Rent

Total SHC

and Lands’

End SF

Total Base

Rent

Adjustment

Plus Lands’

End Rent

Occurrence

of Multi-

Tenancy

Occupancy

Date

(Y/N)

Total SF

(including all

third-party

leases)

Tenant’s

Proportionate

Share **

103

7607

Kmart

Hopkinsville

KY

70,326

[**]

0

[**]

Y

92,985

[**]

104

7430

Kmart

Owensboro

KY

68,334

0

N

68,334

105

2176

Sears

Paducah

KY

108,244

0

N

108,244

106

3320

Kmart

Houma

LA

96,681

0

Y

101,393

107

1347

Sears

Lafayette

LA

194,933

0

N

194,933

108

7061

Kmart

New Iberia

LA

91,653

0

N

91,653

109

3879

Kmart

Braintree

MA

102,396

0

Y

113,442

110

1053

Sears

Saugus

MA

204,862

5,565

N

210,427

111

2034

Sears

Bowie

MD

131,536

0

N

131,536

112

1864

Sears

Cockeysville

MD

149,704

16,242

N

165,946

113

7713

Kmart

Edgewater

MD

117,162

0

Y

117,162

114

2945

Sears

Hagerstown

MD

122,711

0

N

122,711

115

9521

Kmart

Madawaska

ME

49,650

0

N

49,650

116

7733

Kmart

Alpena

MI

118,200

0

N

118,200

117

2050

Sears

Jackson

MI

144,162

0

Y

152,662

118

1250

Sears

Lincoln Park

MI

297,905

0

Y

301,663

119

4845

Kmart

Manistee

MI

87,848

0

Y

94,696

120

1450

Sears

Roseville

MI

367,378

10,019

Y

385,397

121

9586

Kmart

Sault Ste. Marie

MI

92,650

0

N

92,650

122

4177

Kmart

St. Clair Shores

MI

117,959

0

Y

122,137

123

1490

Sears

Troy

MI

380,926

9,074

Y

402,630

124

1132

Sears

Burnsville

MN

161,678

5,659

N

167,337

125

3775

Kmart

Detroit Lakes

MN

79,102

0

Y

87,102

126

1122

Sears

Maplewood

MN

168,549

6,421

N

174,970

127

1052

Sears

St. Paul

MN

216,304

0

Y

217,930

128

7021

Kmart

Cape Girardeau

MO

82,597

0

N

82,597

129

4304

Kmart

Florissant

MO

114,740

0

Y

119,040

130

7018

Kmart

Jefferson City

MO

92,016

0

Y

97,141

131

7719

Kmart

Columbus

MS

117,082

0

Y

166,682

132

4814

Kmart

Havre

MT

94,658

0

N

94,658

133

1185

Sears

Asheville

NC

232,380

8,263

N

240,643

134

4758

Kmart

Concord

NC

137,499

0

Y

171,266

135

4353

Kmart

Minot

ND

108,110

0

Y

110,413

136

3814

Kmart

Kearney

NE

86,479

0

N

86,479

137

2443

Sears

Manchester

NH

135,109

8,961

N

144,070

138

1313

Sears

Nashua

NH

159,509

7,573

N

167,082

*

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

**

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

 

Schedule 2 Base Rent Adjustment - 4


 

 

Site

Type

City

State

SHC SF

SHC Base

Rent

Adjustment

Lands’

End SF

Lands’ End

Rent

Total SHC

and Lands’

End SF

Total Base

Rent

Adjustment

Plus Lands’

End Rent

Occurrence

of Multi-

Tenancy

Occupancy

Date

(Y/N)

Total SF

(including all

third-party

leases)

Tenant’s

Proportionate

Share **

139

2663

Sears

Portsmouth

NH

120,120

[**]

6,938

[**]

N

127,058

[**]

140

1003

Sears

Salem

NH

119,036

8,532

Y

206,558

141

1574

Sears

Middletown

NJ

176,069

8,471

Y

191,230

142

1294

Sears

Watchung

NJ

253,860

9,042

Y

262,902

143

1434

Sears

Wayne

NJ

317,682

9,652

N

327,334

144

7755

Kmart

Deming

NM

96,571

0

N

96,571

145

7035

Kmart

Farmington

NM

90,651

0

N

90,651

146

7016

Kmart

Hobbs

NM

88,914

0

N

88,914

147

9819

Kmart

Henderson

NV

122,823

0

Y

143,914

148

1668

Sears

Las Vegas

NV

150,185

0

N

150,185

149

1978

Sears

Reno

NV

198,833

0

N

198,833

150

1103

Sears

Albany

NY

264,271

7,616

Y

305,670

151

1623

Sears

Clay

NY

137,962

8,542

N

146,504

152

1794

Sears

East Northport

NY

186,950

8,350

Y

195,300

153

1264

Sears

Hicksville

NY

332,065

8,369

Y

362,572

154

1784

Sears

Johnson City

NY

155,126

0

N

155,126

155

7695

Kmart

Olean

NY

118,004

0

N

118,004

156

1524

Sears

Rochester

NY

128,513

0

N

128,513

157

7676

Kmart

Sidney

NY

94,428

0

N

94,428

158

1584

Sears

Victor

NY

115,312

7,688

N

123,000

159

1944

Sears

Yorktown Heights

NY

153,670

6,334

N

160,004

160

1410

Sears

Canton

OH

210,384

8,979

N

219,363

161

1520

Sears

Chapel Hill

OH

187,179

7,495

Y

196,240

162

1560

Sears

Dayton

OH

183,532

8,969

N

192,501

163

7736

Kmart

Kenton

OH

96,066

0

N

96,066

164

7477

Kmart

Marietta

OH

87,543

0

N

87,543

165

1350

Sears

Mentor

OH

208,712

10,420

N

219,132

166

1430

Sears

Middleburg Heights

OH

351,610

7,381

N

358,991

167

3243

Kmart

North Canton

OH

84,180

0

Y

87,114

168

3142

Kmart

Tallmadge

OH

84,180

0

N

84,180

169

1220

Sears

Toledo

OH

209,948

8,772

N

218,720

170

7003

Kmart

Muskogee

OK

87,500

0

N

87,500

171

1091

Sears

Oklahoma City

OK

173,658

0

N

173,658

172

1119

Sears

Happy Valley

OR

137,879

6,442

N

144,321

173

3888

Kmart

The Dalles

OR

87,101

0

N

87,101

174

7746

Kmart

Carlisle

PA

117,781

0

N

117,781

*

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

**

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

 

Schedule 2 Base Rent Adjustment - 5


 

 

Site

Type

City

State

SHC SF

SHC Base

Rent

Adjustment

Lands’

End SF

Lands’ End

Rent

Total SHC

and Lands’

End SF

Total Base

Rent

Adjustment

Plus Lands’

End Rent

Occurrence

of Multi-

Tenancy

Occupancy

Date

(Y/N)

Total SF

(including all

third-party

leases)

Tenant’s

Proportionate

Share **

175

3911

Kmart

Columbia

PA

86,721

[**]

0

[**]

N

86,721

[**]

176

7699

Kmart

Lebanon

PA

117,162

0

N

117,162

177

9770

Kmart

Mount Pleasant

PA

83,536

0

N

83,536

178

3954

Kmart

Walnutport

PA

121,159

0

N

121,159

179

4313

Kmart

York

PA

82,033

0

N

82,033

180

7788

Kmart

Bayamon

PR

114,600

0

Y

115,191

181

1085

Sears

Caguas

PR

138,686

0

N

138,686

182

1925

Sears

Carolina

PR

198,009

0

N

198,009

183

7768

Kmart

Guaynabo

PR

115,745

0

Y

217,335

184

3882

Kmart

Mayaguez

PR

118,242

0

N

118,242

185

7741

Kmart

Ponce

PR

126,887

0

N

126,887

186

1083

Sears

Warwick

RI

216,916

8,188

Y

246,052

187

7754

Kmart

Anderson

SC

118,749

0

N

118,749

188

1325

Sears

Charleston

SC

132,031

0

Y

138,828

189

7043

Kmart

Rock Hill

SC

89,299

0

Y

89,299

190

7318

Kmart

Sioux Falls

SD

72,511

0

N

72,511

191

1146

Sears

Cordova

TN

156,131

4,754

N

160,885

192

1186

Sears

Memphis

TN

191,665

4,899

Y

202,399

193

1847

Sears

Austin

TX

172,016

0

N

172,016

194

1227

Sears

Dallas

TX

205,297

0

N

205,297

195

4205

Kmart

El Paso

TX

103,657

0

Y

112,099

196

1257

Sears

Friendswood

TX

166,012

0

N

166,012

197

7077

Kmart

Harlingen

TX

91,653

0

N

91,653

198

1067

Sears

Houston

TX

209,488

4,941

Y

218,603

199

1277

Sears

Ingram

TX

168,397

0

N

168,397

200

2147

Sears

Irving

TX

79,535

0

Y

174,535

201

1167

Sears

San Antonio

TX

215,458

0

Y

221,837

202

1127

Sears

Shepherd

TX

201,700

0

N

201,700

203

1057

Sears

Valley View

TX

229,227

0

Y

235,007

204

1197

Sears

Westwood

TX

215,016

0

N

215,016

205

7426

Kmart

Layton

UT

90,010

0

Y

166,869

206

1888

Sears

West Jordan

UT

201,125

4,333

N

205,458

207

1284

Sears

Alexandria

VA

252,504

9,608

N

262,112

208

1615

Sears

Chesapeake

VA

169,376

0

N

169,376

209

1814

Sears

Fairfax

VA

214,110

11,668

N

225,778

210

1575

Sears

Hampton

VA

245,000

0

N

245,000

*

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

**

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

 

Schedule 2 Base Rent Adjustment - 6


 

 

Site

Type

City

State

SHC SF

SHC Base

Rent

Adjustment

Lands’

End SF

Lands’ End

Rent

Total SHC

and Lands’

End SF

Total Base

Rent

Adjustment

Plus Lands’

End Rent

Occurrence

of Multi-

Tenancy

Occupancy

Date

(Y/N)

Total SF

(including all

third-party

leases)

Tenant’s

Proportionate

Share **

211

1265

Sears

Virginia Beach

VA

86,855

[**]

0

[**]

Y

200,315

[**]

212

2514

Sears

Warrenton

VA

113,948

7,130

N

121,078

213

1069

Sears

Redmond

WA

255,949

11,458

Y

274,907

214

2239

Sears

Vancouver

WA

124,888

4,750

N

129,638

215

4439

Kmart

Yakima

WA

97,251

0

Y

117,251

216

1082

Sears

Greendale

WI

238,416

0

N

238,416

217

2382

Sears

Madison

WI

130,201

8,062

N

138,263

218

3970

Kmart

Platteville

WI

94,841

0

N

94,841

219

4188

Kmart

Charleston

WV

105,575

0

N

105,575

220

3877

Kmart

Elkins

WV

94,885

0

Y

99,598

221

3724

Kmart

Scott Depot

WV

89,790

0

N

89,790

222

4736

Kmart

Casper

WY

91,266

0

Y

91,366

223

4863

Kmart

Gillette

WY

94,587

0

N

94,587

224

4837

Kmart

Riverton

WY

94,840

0

N

94,840

TOTAL

33,534,252

$133,999,528

452,460

$5,603,314

33,993,411

$139,626,841

 

35,573,891

95.56%

 

 

 

*

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

**

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

 

Schedule 2 Base Rent Adjustment - 7


 

*

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

**

Footnote re:  pro-rata share and GL improvements

 

 

 

*

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

**

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

 

Schedule 2 Base Rent Adjustment - 8


 

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

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

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

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

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

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

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

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

 

 

 

 


 

Schedule 4.5

Installment Expenses

As of Commencement Date

 

Location & Pro-Rata

 

 

Site

Type

City

State

Tenant’s

Proportionate

Share

Estimated

CAM

Estimated

Taxes ***

Estimated

Insurance