IN RE KMART CORPORATION

SUSAN SONDERBY, Chief Judge, Bankruptcy

Upon consideration of the cure claim ("Cure Claim") filed by Northway Associates Limited Partnership as landlord (the "Landlord") under the lease (the "Lease") of the property described as Store No. 3580/REH 1991, Anchorage, AK and Kmart Corporation ("Kmart") having filed an objection to such Cure Claim; and the Court being advised that the Landlord and Kmart have resolved the Cure Claim; and after due deliberation and sufficient cause appearing therefore; it is hereby

ORDERED that the Landlord shall have an allowed Cure Claim for Store No. 3580/REH 1991 in the agreed amount of $5,353.72 which shall be paid by Kmart within ten (10) days of the date of entry of this Order. Payment shall be made to Northway Associates Limited Partnership and sent care of Sanjay Thapar at Proskauer Rose LLP, 1585 Broadway, New York, N.Y. 10036-8299 by overnight or second business-day mail delivery; and it is further

ORDERED that Landlord (including any assignees, designees or successors in interest) is forever barred from asserting, collecting, or seeking to collect any cure amounts which were due and owing as of May 6, 2003 in addition to the Cure Claim with respect to the Lease relating to Kmart Store No. 3580/REH 1991.