VERNAL TOWNE CENTER INVESTMENT OFFERING

Transcription

1 MANAGEMENT AND CAM FEE SCHEDULE Anytime Fitness It is estimated that tenants proportionate share of Real Estate Taxes, the Shopping Centers Operating Costs and Insurance for the first 18 months shall be approximately $2.00 per sq. ft. of lease space but shall not exceed during the initial term of this lease $4.00 per sq. ft. - Will be capped at 5% yr. over yr. Exclusive of costs incurred for taxes, insurance and snow removal and other costs beyond the Landlord s reasonable control. The amount of Real Estate Taxes on which Tenant s Proportionate Share is based shall be the most current notices of assessment or tax bills concerning the entire building parcel, or if there are none, such amount as Landlord may reasonably estimate. A tax bill submitted by Landlord to Tenant shall be evidence of the amount of Taxes assess or levied, as well as the items taxed. Management Fee: Any amounts payable by landlord under the OEA (as defined in Section 10.2 below) or pursuant to any other matter of record; and five(5) percent of all of the foregoing costs to cover administrative and overhead costs Tenant shall pay Tenant s Proportionate Share of the cost of all insurance procured by Landlord pursuant to Article 22. Landlord shall obtain and maintain in force during the Term the following insurance (a) insurance providing coverage on insurable improvements to the Common Areas in an amount equal to at least one hundred percent (100%) of the replacement value Dickey s Management Fee: Ten Percent (10%) of all the foregoing costs ( Management Fee ) to cover administrative and overhead costs, except that in no event the Management fee exceed more than five (5%) percent of the building parcels Operating Costs excluding all costs for utilities. The amount of Real Estate Taxes on which Tenant s Proportionate Share is based shall be the most current notices of assessment or tax bills concerning the entire building parcel, or if there are none, such amount as Landlord may reasonably estimate. A tax bill submitted by Landlord to Tenant shall be evidence of the amount of Taxes assess or levied, as well as the items taxed. Tenant shall pay tenants proportionate share of the cost of all insurance procured by Landlord pursuant to Article 22. Prior to the beginning of a calendar year, Landlord shall deliver to Tenant a statement showing the Estimated costs for such calendar year. Estimated Costs shall mean landlords estimated of tenants proportionate share of Real Estate Taxes, building parcels operating costs agreement costs and Insurance for a particular calendar year, excluding the costs of any utilities which are separately metered and paid directly by tenant. Landlord agrees that tenants proportionate share of building parcels operating costs, excluding the costs of utilities and snow removal will not increase more than 5% over such costs over such costs for the prior calendar year. 1

2 Jimmy John s It is estimated that tenants proportionate share of Real Estate Taxes, the Shopping Centers Operating Costs and Insurance for the first year (1yr.) shall be approximately $3.50 per sq. ft. of lease space but shall not exceed during the initial term of this lease $4.00 per sq. ft. - Will be capped at 5% yr. over yr. Exclusive of costs incurred for taxes, insurance and snow removal and other costs beyond the Landlord s reasonable control. The amount of Real Estate Taxes on which Tenant s Proportionate Share is based shall be the most current notices of assessment or tax bills concerning the entire building parcel, or if there are none, such amount as Landlord may reasonably estimate. Landlord shall not add any administrative or management fee to the cost of any Real Estate Taxes. A tax bill submitted by Landlord to Tenant shall be evidence of the amount of Taxes assess or levied, as well as the items taxed. Management Fee: Any amounts payable by landlord under the OEA (as defined in Section 10.2 below) or pursuant to any other matter of record; and five (5) percent of all of the foregoing costs to cover administrative and overhead costs Tenant shall pay Tenant s Proportionate Share of the cost of all insurance procured by Landlord pursuant to Article 22. Landlord shall obtain and maintain in force during the Term the following insurance (a) insurance providing coverage on insurable improvements to the Common Areas in an amount equal to at least one hundred percent (100%) of the replacement value 2

3 Ross Dress for Less (a) Management Fee: Five percent (5%) Beginning with the first day of the first calendar month of the term following tenants receipt of Landlord s written estimate of its annual obligation in respect of the common area charges, Tenant shall include one- twelfth 1/12th) of its annual obligation set forth in such estimate with each payment of Minimum Rent for the ensuing twelve (12) month period. After the first calendar year, any proposed increase in total common area charges in excess of three (3) percent over the previous years expenditures must be justified by itemization of each element of charge, together with (a) a written explanation of the reason of the increase in excess of 3% and (b) copies of the completive bids described in Section below. The requirement for the bids shall also apply at any time an element of the Common Area Charge is proposed to increase more than ten percent (10) in any year, in the relation to the cost for such element for the previous twelve (12) month period, whether the resulting proposed Common Area of the subject year will be in excess of three percent (3) over the amount paid by tenant of the previous twelve (12) months. In the absence of the required justification of the proposed increase in Common Area Charges in excess of three percent (3) then shall be under no obligation in respect of such year to pay more than the amount payable by tenant for the previous twelve (12 months plus three percent (3). Taxes as defined in Article 8, and Property Insurance pursuant to Section 9.1 are not included as Common Area charges, and accordingly, are not in the computation of the administrate fee specified in Section 1.8. See excluded charges on page (37). In addition to the Minimum Rent herein reserved, Tenant shall reimburse Landlord for Tenant s Pro Rata Share (calculated in accordance with Section hereafter) of the Tax Bill, applicable to each Tax Year or part thereof which falls within the Term. Tenant shall be responsible to reimburse Landlord for Tenant s Pro Rata Share of the premium for the Special Form Policy described in above, excluding (i) any management or administration fees, and (ii) earthquake or flood or terrorism insurance. Sally Beauty 6.05 Lessee agrees to reimburse Lessor for Lessee s proportionate share of all expenses actually incurred by Lessor to maintain or cause to be maintained the Common Area as provided above ( CAM expenses ). CAM expenses means all reasonable costs, expenses and fees incurred or payable by Lessor in connection the ownership, operation, management, maintenance and repair of the Shopping Center, determined in accordance with sound accounting principles customarily used in connection with shopping centers including, without limitation, the reasonable costs, expenses and fees of and relating to the following: real and personal property taxes and assessments (and any tax levied in whole or in part in lieu of or in addition to such taxes and assessments); assessments levied under a common maintenance regime; maintenance agreement or declaration of covenants, including the OEA; removal of snow, ice, trash and other refuse from the Common Areas; landscaping, cleaning, parking and security services (if any); fire protection; utilities; supplies and materials; insurance; licenses, permits and inspections; periodic maintenance of the HVAC system (which cost shall not include any repair cost to the HVAC system, which are the sole responsibility of Lessee, and which periodic maintenance shall not affect Lessee s obligations under Section below); advertising; seasonal, holiday and other decorations, promotions and activities; management services; accounting services; labor and personnel; and maintenance and repair. 3

4 Sally Beauty (continued): Strata Networks (a) 7.3(a) 7.3(f) 7.4(a) 22.5 Management Fees Not Specified - Notwithstanding the foregoing, CAM expenses shall not include: (15) a greater than five percent increase in management fees in a given year; (17) any insurance premium to the extent, but only such extent, that Lessor is entitled to be reimbursed by Lessee pursuant to this Lease or by any other lessee of the Shopping Center pursuant to a similar lease; After the first Lease Year, Lessee s proportionate share of CAM expenses shall not exceed one hundred fiver percent (105%) of the CAM expenses paid. By lessee for the preceding lease year, excluding taxes, insurance, utilities and snow removal. Lessee shall reimburse Lessor its proportionate share of the real property taxes and assessments levied against the Shopping Center for each tax year or partial tax year falling within the term or extended term of this Lease. Lessee shall reimburse Lessor for its proportionate share of the insurance premiums for the above described policies in monthly installments in the same manner as CAM. Tenant shall pay Tenant s Proportionate Share of all Real Estate Taxes levied or assessed by lawful taxing authorities against the land, buildings, and improvements comprising the Building Parcel. Management Fees: Five percent (5%) of all of the foregoing costs to cover administrative and overhead costs. Notwithstanding the foregoing, Shopping Center Operating Costs shall not include: (15) a greater than five percent increase in management fees in a given year; (17) any insurance premium to the extent, but only such extent, that Landlord is entitled to be reimbursed by Tenant pursuant to this Lease or by any other lessee of the Shopping Center pursuant to a similar lease; After the first lease year, tenants proportionate share of the Shopping Center s Operating Costs shall not exceed one hundred five percent (105%) of the Shopping Centers Operating Costs paid by tenant for the preceding Lease year, excluding taxes, insurance, utilities and snow removal. Tenant shall pay tenants proportionate share of the cost of all insurance procured by landlord pursuant to Article 22. Landlord shall obtain and maintain in force during the Term the following insurance (a) insurance providing coverage on insurable improvements to the Common Areas in an amount equal to at least one hundred percent (100%) of the replacement value. 4

5 Sportsman s Warehouse Commencing as of the Commencement Date, Tenant will reimburse Landlord for Tenant s Pro-Rata Share (as defined in Section 11 of this Lease) of all Taxes levied or imposed against the Building Parcel during the Term as well as taxes payable as Declaration Expenses. Prior to the second full Lease Year, Taxes payable by Tenant, as well as taxes payable as Declaration Expenses, will not exceed $1.50 per square foot of Store Square Footage. Any increase in Taxes following the second full Lease Year shall be subject to the terms and conditions of Section of this Lease. Management Fee: In no event will CAM Charges include (and in no event will Tenant make payment to the CAM Provider for): (f) Any administrative or other charge of CAM Provider, in excess of five percent (5%) of the total of all other CAM Charges (specifically not including Taxes or Insurance, for which no administrative charge will be applied or paid by Tenant); (g) any charge for management fees other than the charges described in subparagraph (f) above; Tenant is not obligated to pay for Declaration Expenses which are a duplication of CAM Charges. Notwithstanding the foregoing, Declaration Expenses payable by tenant shall specifically not included any expected item or amount described in Section 9.3, including without limitation any amount attributable to or otherwise payable for (a) management fees and/or (b) administrative fees (however denominated) cumulatively in excess of 5% of all other CAM charges and declaration Expenses (specifically not including taxes or Insurance, for which not administrative charge will be applied or paid by tenant). During the term of this lease, tenant will maintain, at tenant s sole cost and expense, the insurance described in this Section 12 5

6 T.J. Maxx of Schedule B Tenant shall pay to Landlord the amount of the real estate taxes allocable to the demises premises for each tax year included within the terms of this lease; for the first and last tax years included in part within the terms of this lease, Tenant shall pay to Landlord a pro rata share of such taxes for such tax years, based upon the portions of such tax years included within the term of this lease. As partial reimbursement to Landlord of the cost to Landlord of (a) performing the obligations of Landlord set forth in Paragraph 7 of this Schedule B (the CAM Costs ) and (b) the premiums paid to insurance companies for the insurance required under Sections 10.3 and 10.4 and Paragraph 11 of this Schedule B (the Insurance Costs ), Tenant shall pay Landlord for each year included in the term of this lease an amount equal to the product of Tenant s Fraction (defined in Section 6.1) and the CAM Costs and Insurance Costs during said year. The amounts payable by Tenant under this Paragraph 10 shall be payable monthly, on account, at the times minimum rent is payable hereunder, in equal monthly installments of onetwelfth (l/121h) of one hundred three percent (103%) of the annual amount actually payable by Tenant under this Paragraph 10 for the immediately preceding calendar year with the amount of any excess payment on account by Tenant hereunder being adjusted within ninety (90) days after the close of each year by Tenant withholding any such excess from the next succeeding monthly payments thereafter becoming due on account hereunder, and the amount of any deficiency in monthly payments on account hereunder by Tenant being paid by Tenant within ninety (90) days after receipt by Tenant of the evidence required of Landlord under the immediately following sentence. Management Fees Not Specified. Notwithstanding the foregoing, Tenant s charges under this Section 10 shall not exceed Three Dollars ($3.00) per square foot of the Demised Premises for the first year of the term of this lease. Thereafter, Tenant s charges under this Section 10 shall not increase by more than three percent (3%) per annum on a non-cumulative basis. As the number of square feet of floor area may change during any year, Tenant s Fraction may change during said year and the amount payable by Tenant for said year pursuant to the provisions of this Paragraph 10 shall reflect such changes in square footage. The amount payable hereunder shall not include any item not specifically set forth in Sections 10.3, 10.4, Paragraph 7 or 11 of this Schedule B, including, without limitation, the amounts set forth in the following sentence. For purposes of clarification, the amount payable hereunder shall not include: (d) any amounts allocable to any so-called management or administrative costs, charges or fees or overhead however designated, 6

7 Jo-Ann Stores 8(a) 8(b) 9(a) 9(f) 21(f) Tenant shall pay no more than $1.35 per sq. ft. of the gross leasable area of the premises for taxes and Landlord represents that said amount is a good faith estimate of the actual taxes that would be due if the tenant were paying its full proportionate share of taxes for said lease year. Notwithstanding anything to the contrary, in no event shall tenants total contribution for taxes exceed 35% of Fixed Minimum Rent in any lease year. Management Fees Not Specified. In addition to payment of the Fixed Minimum Rent, Tenant must pay to Landlord for the First Lease Year an amount equal to $1.80 per square foot per year multiplied by the Gross Leasable Area of the Premises (which fixed dollar amount shall be referred to as Fixed CAM Charge ) for the cost of operation and maintenance of the Common Areas (the Fixed Common Area Costs ). The fixed CAM charges shall increase by 3% per year beginning on the first day of Lease Year Two through the Fifth Lease year. Notwithstanding anything to the contrary, the following are excluded from Common Area Costs: (3) Taxes; (4) Administrative charges, management fees, fees based upon a percentage calculation, leasing commissions or any other fee or charge regardless of the name (including, without limitation, salaries of all kinds, social security, taxes, insurance, part-time or full-time labor, any fees paid to manage the Shopping Center including those paid to a third party management company, and similar costs and expenses) that is related to the management and operation of the Shopping Center; In addition to the payment of Fixed Minimum Rent, Tenant must pay its Proportionate Share of the premium paid by Landlord for maintaining the insurance for the Building Parcel required under subsections 21(a) and 21(e) (the Insurance Costs ). Petco 14 (d) Management Fees: Tenant shall pay to Landlord monthly Tenant s pro rata share of Common Area Costs, as herein defined. Tenant s pro rata share shall be defined as a percent rounded to the nearest hundredth, the denominator of which shall be the gross leasable area of the Building Parcel as shown on the Site Plan (whether constructed, leased, occupied or not), and the numerator of which shall be the square feet area of the Premises. As used in this Lease, the term Common Area Costs means costs passed through to Landlord under the Declaration (but only to the extent such costs are permitted to be included within Common Area Costs pursuant to this subparagraph 14(d)), costs reasonably incurred for operation, maintenance and repair of the Common Areas and supervision thereof (but in no event shall costs for such supervision, administration and management in total exceed five percent (5%) of the Common Area Costs exclusive of taxes and insurance), repairing, repainting and restriping the parking areas, cleaning, sweeping and other janitorial services, sanitation, snow and ice removal, maintenance of refuse receptacles, replanting existing landscaping, repairing directional signs and other markers, and maintenance of lighting and other utilities. Landlord represents, warrants, covenants and agrees that (i) Tenant s pro rata share of Common Area Costs for the first full twelve (12) month calendar year of the Initial Tenn ending not sooner than the December 31st following such twelve (12) month period shall not exceed Three Dollars ($3.00) per square foot per year, and (ii) Landlord has performed due diligence in arriving at the foregoing figure. 7

8 Petco (continued): 15(b) 19(c) During the term of this lease, tenant shall pay prior to delinquency and upon written demand by Landlord, all real estate taxes and assessments levied or assessed against the improvements on the premises and the pro rata portion of the land contain the premises and which are due and payable during there term of the lease provided, however, that the Landlord shall deliver such tax bill to tenant at least 30 days prior to the delinquency date for payment of such bills. Landlord represents, warrants, covenants and agrees that (i) Tenant s pro rata share of real estate taxes through the expiration of the first full twelve (12) month calendar year of the Initial ending not sooner than the December 31st following such twelve (12) month period shall not exceed Two Dollars ($2.00) per square foot per year, (ii) the foregoing figure reflects taxes assessed on the real property and improvements comprising the Shopping Center as a fully improved and constructed development as shown on the Site Plan, not as an unimproved parcel of land, and (iii) Landlord has performed due diligence in arriving at the foregoing figure. Landlord agrees that it will carry all-risk, replacement cost insurance (excluding coverage for excavation, foundation, footings, earthquake, flood and wind storm) on the Building wherein the Premises are located. Landlord shall obtain and maintain in force during the Term comprehensive public liability insurance against claims for personal injury, death, or property damage occurring on, within, or about the Common Areas, and in such form and with such endorsements as Landlord may in its sole discretion determine to be appropriate. Such liability insurance shall afford protection in at least a combined simple limit amount of One Million Dollars ($1,000,000.00), or such other amount as Landlord may reasonably determine is necessary. Such liability insurance shall name as insureds Landlord and Tenant and, at Landlord s option, one or more other tenants or occupants of portions of the Shopping Center or of nearby property and any mortgagee interested under any mortgage then affecting any portion of the Shopping Center. Landlord represents, warrants, covenants and agrees that (i) Tenant s pro rata share of insurance through the expiration of the first full twelve (12) month calendar year of the Initial Term Initial ending not sooner than the December 31st following such twelve (12) month period shall not exceed One Dollar ($1.00) per square foot per year, and (ii) Landlord has performed due diligence in arriving at the foregoing figure. Shoe Dept Tenant shall pay promptly when due all taxes imposed upon Tenant s rent and business operation and upon all personal property of Tenant and shall also pay to Landlord, as additional rent, its Proportionate Share of all Real Estate Taxes. Tenant s tax liability will not exceed $2.50 per square foot for the First Lease Year and will not increase in any calendar year thereafter by more than the amount of Tenant s Proportionate Share of Real Estate Tax Costs for the preceding calendar year (as limited by this sentence) multiplied by the lesser of (a) the percentage increase in the CPI as defined in Section 2.4 or (b) two percent (2%). Management Fees Not Specified - Notwithstanding the foregoing, CAM Costs shall not include: (c) Real Estate Taxes; (d) administrative charges, overhead charges, management fees, or leasing commissions; (f) excess premiums for insurance covering the Common Areas and/or the Shopping Center occasioned by the extra-hazardous use or activities of occupants other than Tenant; 8

9 Shoe Dept. (cont d) 2.4 (cont d) 5.2 Tenant shall pay its Proportionate Share of CAM Costs computed on a calendar year basis. Landlord shall reasonably estimate the CAM Costs and Tenant shall pay one twelfth (1/12) of its Proportionate Share thereof in equal monthly installments, together with the payment of Minimum Rent. Tenant s Proportionate Share of CAM Costs for the calendar year in which the Commencement Date occurs shall not exceed $2.00 per square foot (on an annualized basis) and will not increase in any calendar year thereafter by more than the amount of Tenant s Proportionate Share of CAM Costs for the preceding calendar year (as limited by this sentence) multiplied by the lesser of (a) the percentage increase in the CPI or (b) two percent (2%). Landlord will keep the building, of which the Premises are a part, insured against damage by fire, extended coverage and other perils, in an amount not ever less than the full replacement cost, and in addition, will carry commercial general liability insurance for the Common Areas in at least the same amounts required of Tenant. Tenant shall pay its Proportionate Share of Landlord s Insurance Costs for each Lease Year. Landlord shall reasonably estimate Tenant s Proportionate Share of the Landlord s Insurance Costs and Tenant shall pay one twelfth (1/12) together with the payment of Minimum Rent. Tenant s Proportionate Share of Landlord s Insurance Costs will not exceed $0.50 per square foot for the first Lease Year and will not increase in any calendar year thereafter by more than the amount of Tenant s Proportionate Share of Insurance for the preceding calendar year (as limited by this sentence) multiplied by multiplied by the lesser of (a) the percentage increase in the CPI as defined in Section 2.4 or (b) two percent (2%). ULTA (a) 15.2 Management Fee Not Specified From and after the Rent Commencement Date, Tenant shall pay to Landlord the Fixed CAM Contribution (as hereinafter defined) as Tenant s contribution toward the expenses actually incurred by Landlord for maintaining, operating, repairing, and replacing the Common Area (the Common Area Costs ), subject to Section 7.5. Notwithstanding anything herein to the contrary, commencing on the Rent Commencement Date Tenant shall pay a flat rate to Landlord for all Common Area Costs (the Fixed CAM Contribution ) monthly during the Term one-twelfth (1/12) of Two and 50/100 Dollars ($2.50) per square foot Gross Floor Area of the Premises as the Fixed CAM Contribution, in advance, at the same time and in the same place as the Base Rent. Further notwithstanding anything to the contrary in this Lease, for any calendar year following the first full calendar year, Tenant s Fixed CAM Contribution (excluding the Uncapped Cost) shall increase by three percent (3%) over Tenant s Fixed CAM Contribution (excluding the Uncapped Cost) paid by Tenant for the preceding calendar year. From and after the Rent Commencement Date, Tenant shall pay to Landlord monthly during the Term, concurrently with Tenant s payment of Base Rent, one-twelfth (1/12th) of Tenant s Share of the Insurance Costs. From and after the Rent Commencement Date, Tenant shall pay to Landlord Tenant s Share of all Real Property Taxes relating to the fiscal periods of the applicable taxing authorities occurring partly or wholly within the Term in the manner set forth in Section 7.5 hereof. 9