PROPERTY CO-TENANCY
OWNERSHIP AGREEMENT
(Children's World - DePere, WI)
THIS CO-TENANCY AGREEMENT,
Made and entered into as of the 24th day of March, 2000, by and
between ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇ and ▇▇▇ ▇. ▇▇▇▇▇▇▇▇, husband and wife
as joint tenants, and ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇, a married man as his
sole and separate property, all as joint tenants (hereinafter
called "Kunitake") and AEI Income & Growth Fund XXII Limited
Partnership (hereinafter called "Fund XXII") (Kunitake, Fund XXII
(and any other Owner in Fee where the context so indicates) being
hereinafter sometimes collectively called "Co-Tenants" and
referred to in the neuter gender).
WITNESSETH:
WHEREAS, Fund XXII presently owns an undivided 66.0573% interest
in and to, and Kunitake presently owns an undivided 16.7323%
interest in and to, and D & R Family Limited Partnership
presently owns an undivided 17.2104% interest in and to the land
situated in the City of DePere, County of ▇▇▇▇▇ and State of WI,
(legally described upon Exhibit A attached hereto and hereby made
a part hereof) and in and to the improvements located thereon
(hereinafter called "Premises");
WHEREAS, The parties hereto wish to provide for the orderly
operation and management of the Premises and Kunitake's interest
by Fund XXII; the continued leasing of space within the Premises;
for the distribution of income from and the pro-rata sharing in
expenses of the Premises.
NOW THEREFORE, in consideration of the purchase by Kunitake of an
undivided interest in and to the Premises, for at least One
Dollar ($1.00) and other good and valuable consideration by the
parties hereto to one another in hand paid, the receipt and
sufficiency of which are hereby acknowledged, and of the mutual
covenants and agreements herein contained, it is hereby agreed by
and between the parties hereto, as follows:
1. The operation and management of the Premises shall be
delegated to Fund XXII, or its designated agent, successors or
assigns. Provided, however, if Fund XXII shall sell all of its
interest in the Premises, the duties and obligations of Fund XXII
respecting management of the Premises as set forth herein,
including but not limited to paragraphs 2, 3, and 4 hereof, shall
be exercised by the holder or holders of a majority undivided co-
tenancy interest in the Premises. Except as hereinafter expressly
provided to the contrary, each of the parties hereto agrees to be
bound by the decisions of Fund XXII with respect to all
administrative, operational and management matters of the
property comprising the Premises, including but not limited to
the management of the net lease agreement for the Premises. The
parties hereto hereby designate Fund XXII as their sole and
exclusive agent to deal with, and Fund XXII retains the sole
right to deal with, any property agent or tenant and to monitor,
execute and enforce the terms of leases of space within the
Premises, including but not limited to any amendments, consents
to assignment, sublet, releases or modifications to leases or
guarantees of lease or easements affecting the
Co-Tenant Initial: /s/ GMR by STK, /s/ KHK by STK /s/ STK
Co-Tenancy Agreement for Children's World, DePere, WI
Premises, on behalf of Kunitake. As long as Fund XXII owns an
interest in the Premises, only Fund XXII may obligate Kunitake
with respect to any expense for the Premises.
As further set forth in paragraph 2 hereof, Fund XXII agrees to
require any lessee of the Premises to name Kunitake as an insured
or additional insured in all insurance policies provided for, or
contemplated by, any lease on the Premises. Fund XXII shall use
its best efforts to obtain endorsements adding Co-Tenants to said
policies from lessee within 30 days of commencement of this
agreement. In any event, Fund XXII shall distribute any insurance
proceeds it may receive, to the extent consistent with any lease
on the Premises, to the Co-Tenants in proportion to their
respective ownership of the Premises.
2. Income and expenses shall be allocated among the Co-Tenants
in proportion to their respective share(s) of ownership. Shares
of net income shall be pro-rated for any partial calendar years
included within the term of this Agreement. Fund XXII may offset
against, pay to itself and deduct from any payment due to
Kunitake under this Agreement, and may pay to itself the amount
of Kunitake's share of any legitimate expenses of the Premises
which are not paid by Kunitake to Fund XXII or its assigns,
within ten (10) days after demand by Fund XXII. In the event
there is insufficient operating income from which to deduct
Kunitake's unpaid share of operating expenses, Fund XXII may
pursue any and all legal remedies for collection.
Operating Expenses shall include all normal operating expense,
including but not limited to: maintenance, utilities, supplies,
labor, management, advertising and promotional expenses, salaries
and wages of rental and management personnel, leasing commissions
to third parties, a monthly accrual to pay insurance premiums,
real estate taxes, installments of special assessments and for
structural repairs and replacements, management fees, legal fees
and accounting fees, but excluding all operating expenses paid by
Tenant under terms of any lease agreement of the Premises.
Kunitake has no requirement to, but has, nonetheless elected to
retain, and agrees to annually reimburse, Fund XXII in the amount
of $600 for the expenses, direct and indirect, incurred by Fund
XXII in providing Kunitake with quarterly accounting and
distributions of Kunitake 's share of net income and for
tracking, reporting and assessing the calculation of Kunitake 's
share of operating expenses incurred from the Premises. This
invoice amount shall be pro-rated for partial years and Kunitake
authorizes Fund XXII to deduct such amount from Kunitake 's share
of revenue from the Premises. Kunitake may terminate this
agreement in this paragraph respecting accounting and
distributions at any time and attempt to collect its share of
rental income directly from the tenant; however, enforcement of
all other provisions of the lease remains the sole right of Fund
XXII pursuant to Section 1 hereof. Fund XXII may terminate its
obligation under this paragraph upon 30 days notice to Kunitake
prior to the end of each anniversary hereof, unless agreed in
writing to the contrary.
3. Full, accurate and complete books of account shall be kept
in accordance with generally accepted accounting principles at
Fund XXII's principal office, and each Co-Tenant shall have
access to such books and may inspect and copy any part thereof
during normal business hours. Within ninety (90) days after the
end of each calendar year during the term hereof, Fund XXII
Co-Tenant Initial: /s/ GMR by STK, /s/ KHK by STK /s/ STK
Co-Tenancy Agreement for Children's World, DePere, WI
shall prepare an accurate income statement for the ownership of
the Premises for said calendar year and shall furnish copies of
the same to all Co-Tenants. Quarterly, as its share, Kunitake
shall be entitled to receive 16.7323% of all items of income and
expense generated by the Premises. Upon receipt of said
accounting, if the payments received by each Co-Tenant pursuant
to this Paragraph 3 do not equal, in the aggregate, the amounts
which each are entitled to receive proportional to its share of
ownership with respect to said calendar year pursuant to
Paragraph 2 hereof, an appropriate adjustment shall be made so
that each Co-Tenant receives the amount to which it is entitled.
4. If Net Income from the Premises is less than $0.00 (i.e.,
the Premises operates at a loss), or if capital improvements,
repairs, and/or replacements, for which adequate reserves do not
exist, need to be made to the Premises, the Co-Tenants, upon
receipt of a written request therefor from Fund XXII, shall,
within fifteen (15) business days after receipt of notice, make
payment to Fund XXII sufficient to pay said net operating losses
and to provide necessary operating capital for the premises and
to pay for said capital improvements, repairs and/or
replacements, all in proportion to their undivided interests in
and to the Premises.
5. Co-Tenants may, at any time, sell, finance, or otherwise
create a lien upon their interest in the Premises but only upon
their interest and not upon any part of the interest held, or
owned, by any other Co-Tenant. All Co-Tenants reserve the right
to escrow proceeds from a sale of their interests in the Premises
to obtain tax deferral by the purchase of replacement property.
6. If any Co-Tenant shall be in default with respect to any of
its obligations hereunder, and if said default is not corrected
within thirty (30) days after receipt by said defaulting Co-
Tenant of written notice of said default, or within a reasonable
period if said default does not consist solely of a failure to
pay money, the remaining Co-Tenant(s) may resort to any available
remedy to cure said default at law, in equity, or by statute.
7. This property management agreement shall continue in full
force and effect and shall bind and inure to the benefit of the
Co-Tenant and their respective heirs, executors, administrators,
personal representatives, successors and permitted assigns until
July 14, 2029 or upon the sale of the entire Premises in
accordance with the terms hereof and proper disbursement of the
proceeds thereof, whichever shall first occur. Unless
specifically identified as a personal contract right or
obligation herein, this agreement shall run with any interest in
the Property and with the title thereto. Once any person, party
or entity has ceased to have an interest in fee in any portion of
the Entire Property, it shall not be bound by, subject to or
benefit from the terms hereof; but its heirs, executors,
administrators, personal representatives, successors or assigns,
as the case may be, shall be substituted for it hereunder.
8. Any notice or election required or permitted to be given or
served by any party hereto to, or upon any other, shall be deemed
given or served in accordance with the provisions of this
Agreement, if said notice or elections addressed as follows;
Co-Tenant Initial: /s/ GMR by STK, /s/ KHK by STK /s/ STK
Co-Tenancy Agreement for Children's World, DePere, WI
If to Fund XXII:
AEI Income & Growth Fund XXII Limited Partnership
1300 Minnesota World Trade Center
▇▇ ▇. ▇▇▇▇▇▇▇ ▇▇▇▇▇▇
▇▇. ▇▇▇▇, ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇
If to Kunitake:
▇▇▇▇▇▇ ▇. and ▇▇▇ ▇. ▇▇▇▇▇▇▇▇
▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇
▇▇▇ ▇▇▇▇▇▇
▇▇▇ ▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇
If to D & R :
▇▇▇▇▇▇ ▇▇▇▇▇▇▇, Partner
D & R Family Limited Partnership
▇▇▇▇ ▇. ▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇
▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇
Each mailed notice or election shall be deemed to have been given
to, or served upon, the party to which addressed on the date the
same is deposited in the United States certified mail, return
receipt requested, postage prepaid, or given to a nationally
recognized courier service guaranteeing overnight delivery as
properly addressed in the manner above provided. Any party hereto
may change its address for the service of notice hereunder by
delivering written notice of said change to the other parties
hereunder, in the manner above specified, at least ten (10) days
prior to the effective date of said change.
9. This Agreement shall not create any partnership or joint
venture among or between the Co-Tenants or any of them, and the
only relationship among and between the Co-Tenants hereunder
shall be that of owners of the premises as tenants in common
subject to the terms hereof.
10. The unenforceability or invalidity of any provision or
provisions of this Agreement as to any person or circumstances
shall not render that provision, nor any other provision hereof,
unenforceable or invalid as to any other person or circumstances,
and all provisions hereof, in all other respects, shall remain
valid and enforceable.
11. In the event any litigation arises between the parties
hereto relating to this Agreement, or any of the provisions
hereof, the party prevailing in such action shall be entitled to
receive from the losing party, in addition to all other relief,
remedies and damages to which it is otherwise entitled, all
reasonable costs and expenses, including reasonable attorneys'
fees, incurred by the prevailing party in connection with said
litigation.
Co-Tenant Initial: /s/ GMR by STK, /s/ KHK by STK /s/ STK
Co-Tenancy Agreement for Children's World, DePere, WI
IN WITNESS WHEREOF, The parties hereto have caused this Agreement
to be executed and delivered, as of the day and year first above
written.
Kunitake: ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇ and ▇▇▇ ▇. ▇▇▇▇▇▇▇▇, husband
and wife as joint tenants, and ▇▇▇▇▇▇ ▇.
▇▇▇▇▇▇▇▇, a married man as his sole and
separate property, all as joint tenants
By: /s/ ▇▇▇▇▇▇ ▇ ▇▇▇▇▇▇▇▇ by ▇▇▇▇▇▇ ▇ ▇▇▇▇▇▇▇▇ his atty
in fact
▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇
By: /s/ ▇▇▇ ▇ ▇▇▇▇▇▇▇▇ by ▇▇▇▇▇▇ ▇ ▇▇▇▇▇▇▇▇ her atty in
fact
▇▇▇ ▇. ▇▇▇▇▇▇▇▇
By:/s/ ▇▇▇▇▇▇ ▇ ▇▇▇▇▇▇▇▇
▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇
WITNESS:
(as to all signers)
/s/ ▇▇▇▇ ▇▇▇▇▇▇▇▇
▇▇▇▇ ▇▇▇▇▇▇▇▇
(Print Name)
State of )
) ss.
County of )
I, a Notary Public in and for the state and county of aforesaid,
hereby certify there appeared before me this day of
2000, ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇, who executed the
foregoing instrument in said capacity.
Notary Public
Co-Tenant Initial: /s/ GMR by STK, /s/ KHK by STK /s/ STK
Co-Tenancy Agreement for Children's World, DePere, WI
State of )
) ss.
County of )
I, a Notary Public in and for the state and county of aforesaid,
hereby certify there appeared before me this day of
2000, ▇▇▇ ▇. ▇▇▇▇▇▇▇▇, who executed the
foregoing instrument in said capacity.
Notary Public
State of )
) ss.
County of )
I, a Notary Public in and for the state and county of aforesaid,
hereby certify there appeared before me this 15th day of March,
2000, ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇, who executed the foregoing instrument
in said capacity.
/s/ ▇▇▇▇ ▇▇▇▇▇▇
Notary Public
[notary seal]
Co-Tenant Initial: /s/ GMR by STK, /s/ KHK by STK /s/ STK
Co-Tenancy Agreement for Children's World, DePere, WI
Fund XXII: AEI Income & Growth Fund XXII Limited Partnership
By: AEI Fund Management XXI, Inc., its corporate general
partner
By:/s/ ▇▇▇▇▇▇ ▇ ▇▇▇▇▇▇▇
▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇, President
WITNESS:
/s/ ▇▇▇▇ ▇▇▇▇▇▇▇
▇▇▇▇ ▇▇▇▇▇▇▇
(Print Name)
State of Minnesota )
) ss.
County of ▇▇▇▇▇▇ )
I, a Notary Public in and for the state and county of aforesaid,
hereby certify there appeared before me this 24th day of March,
2000, ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇, President of AEI Fund Management XXI
Inc., corporate general partner of AEI Income & Growth Fund XXII
Limited Partnership, who executed the foregoing instrument in
said capacity and on behalf of the corporation in its capacity as
corporate general partner, on behalf of said limited partnership.
/s/ ▇▇▇▇▇▇▇ ▇ ▇▇▇▇▇▇▇▇
Notary Public
[notary seal]
Co-Tenant Initial: /s/ GMR by STK, /s/ KHK by STK /s/ STK
Co-Tenancy Agreement for Children's World, DePere, WI
EXHIBIT "A"
LEGAL DESCRIPTION
All of Lot One (1) of Volumnet 34 Certified Survey
Maps, Page 125, ▇▇▇▇▇ County Records, and is located in
part of Government Lots 1 and 2, Section Thirty-five
(35) and part of Government Lot 1 and part of the
Southeast One-quarter of the Northeast, One-quarter (SE
1/4 - NE 1/4), Section Thirty-four (34), all being in
Township Twenty-three (23) North, Range Twenty (20)
East, in the Town of Ledgeview, ▇▇▇▇▇ County,
Wisconsin.
and
Part of Lot One (1) of Volume 30 Certified Survey
Maps, Page 71, ▇▇▇▇▇ County Records, being part of
Government ▇▇▇▇ ▇ ▇▇▇ ▇, ▇▇▇▇▇▇▇ ▇▇▇▇▇▇-▇▇▇▇ (▇▇),
▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇-▇▇▇▇▇ (23) North, Range Twenty (20)
East, in the Town of Ledgeview, ▇▇▇▇▇ County,
Wisconsin, more fully described as follows:
Commencing at the ▇▇▇▇ ▇/▇ ▇▇▇▇▇▇, ▇▇▇▇▇▇▇ ▇▇,
▇▇▇▇, ▇▇▇▇; thence N01 36' 23" West, 1763.33 feet along
the West line of said Section 35, to the South right-of-
way of Heritage Road, also known as C.T.H. "X"'; thence
▇▇▇ ▇▇'▇▇" East, 82.54 feet along said right-of-way to
the point of beginning; thence ▇▇▇ ▇▇'▇▇" ▇▇▇▇ 53.61
feet along said right-of-way; thence 167.98 feet along
said right-of-way, being the arc of a 1095.92 foot
radius curve to the right, whose long chord bears S86
33'48" East, 167.82 feet; thence S1 36' 23" East,
539.93 feet along the East line of Lot 1, Volume 30
Certified Survey Maps, Page 71, ▇▇▇▇▇ County Records,
to the North right-of-way of Swan Road; thence S88 33'
16" West, 220.77 feet along said right-of-way; thence N
1 36' 23" West, 554.67 feet along the East line of Lot
1, Volume 34 Certified Survey Maps, Page 125, ▇▇▇▇▇
County Records, to the point of beginning.
Tax Parcel No. D-50-1 and ▇-▇▇-▇
▇▇▇▇▇▇▇▇ ▇▇▇▇/▇▇▇▇▇▇▇▇ ▇▇▇▇
▇▇ ▇▇▇▇, ▇▇ ▇▇▇▇▇