PROPERTY CO-TENANCY
OWNERSHIP AGREEMENT
(▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇'▇ - ▇▇▇▇▇▇▇▇▇, NV)
THIS CO-TENANCY AGREEMENT,
Made and entered into as of the 14th day of June, 2000, by and
between ▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇▇▇ (hereinafter called "Noltensmeier"),
and AEI Net Lease Income & Growth Fund XIX Limited Partnership
(hereinafter called "Fund XIX") (Noltensmeier, Fund XIX (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 XIX presently owns an undivided 39.7291% interest
in and to, and Noltensmeier presently owns an undivided 13.5604%
interest in and to, and ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇ and ▇▇▇▇▇▇ ▇▇▇ ▇▇▇▇▇,
husband and wife as survivorship marital property presently own
an undivided 10.1238% interest in and to, and ▇▇▇▇ ▇.
▇▇▇▇▇▇▇▇▇▇▇, Trustee of the ▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇▇▇▇ Trust dated
October 16, 1996 presently owns an undivided 10.4257% interest in
and to, and ▇▇▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇ and ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇,
married with rights of survivorship, presently own an undivided
14.1641% interest in and to, and ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇ and ▇▇▇ ▇.
▇▇▇▇▇▇▇▇, husband and wife, and ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇, as joint
tenants, presently own an undivided 11.9969% interest in and to
the land situated in the City of ▇▇▇▇▇▇▇▇▇, County of ▇▇▇▇▇, and
State of NV, (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 Noltensmeier's
interest by Fund XIX; 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 Noltensmeier
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 XIX, or its designated agent, successors or
assigns. Provided, however, if Fund XIX shall sell all of its
interest in the Premises, the duties and obligations of Fund XIX
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 XIX with respect to all
administrative, operational and management matters of the
property comprising the Premises, including but not limited to
the
Co-Tenant Initial: /s/ GN by DEG her attorney in fact
Co-Tenancy Agreement for ▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇'▇ ▇▇▇▇▇▇▇▇▇, NV
management of the net lease agreement for the Premises.
Noltensmeier hereto hereby designates Fund XIX as its sole and
exclusive agent to deal with, and Fund XIX retains the sole
right to deal with, any property agent or tenant and to
negotiate and enter into, on terms and provisions satisfactory
to Fund XIX, 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 Premises, on behalf of Noltensmeier. As long as
Fund XIX owns an interest in the Premises, only Fund XIX may
obligate Noltensmeier with respect to any expense for the
Premises.
As further set forth in paragraph 2 hereof, Fund XIX agrees to
require any lessee of the Premises to name Noltensmeier as an
insured or additional insured in all insurance policies provided
for, or contemplated by, any lease on the Premises. Fund XIX
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 XIX 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 XIX may offset
against, pay to itself and deduct from any payment due to under
this Agreement, and may pay to itself the amount of
Noltensmeier's share of any reasonable expenses of the Premises
which are not paid by Noltensmeier to Fund XIX or its assigns,
within ten (10) days after demand by Fund XIX. In the event there
is insufficient operating income from which to deduct
Noltensmeier's unpaid share of operating expenses, Fund XIX 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.
Noltensmeier has no requirement to, but has, nonetheless elected
to retain, and agrees to annually reimburse, Fund XIX in the
amount of $767 for the expenses, direct and indirect, incurred by
Fund XIX in providing Noltensmeier with quarterly accounting and
distributions of Noltensmeier's share of net income and for
tracking, reporting and assessing the calculation of
Noltensmeier's share of operating expenses incurred from the
Premises. This invoice amount shall be pro-rated for partial
years and Noltensmeier authorizes Fund XIX to deduct such amount
from Noltensmeier's share of revenue from the Premises.
Noltensmeier 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 XIX pursuant to Section 1 hereof. Fund
XIX agrees to perform its obligation under this paragraph
throughout the term of this agreement.
Co-Tenant Initial: /s/ GN by DEG her attorney in fact
Co-Tenancy Agreement for ▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇'▇ ▇▇▇▇▇▇▇▇▇, NV
3. Full, accurate and complete books of account shall be kept
in accordance with generally accepted accounting principles at
Fund XIX'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 XIX 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, Noltensmeier shall be
entitled to receive 13.5604% 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 XIX, shall,
within fifteen (15) business days after receipt of notice, make
payment to Fund XIX 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 Co-Tenancy 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 September
1, 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.
Co-Tenant Initial: /s/ GN by DEG her attorney in fact
Co-Tenancy Agreement for ▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇'▇ ▇▇▇▇▇▇▇▇▇, NV
8. Any notice or election required or permitted to be given or
served by any party hereto to, or upon any other, shall be given
to all known Co-Tenants and deemed given or served in accordance
with the provisions of this Agreement, if said notice or
elections addressed as follows;
If to Fund XIX:
AEI Real Estate Fund XIX Limited Partnership
1300 Minnesota World Trade Center
▇▇ ▇. ▇▇▇▇▇▇▇ ▇▇▇▇▇▇
▇▇. ▇▇▇▇, ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇
If to Noltensmeier:
▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇▇▇
▇/▇ ▇▇▇ ▇▇▇▇▇▇▇▇▇▇▇▇ ▇/▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇▇ Rim View ▇▇ ▇ ▇▇▇ ▇▇▇▇▇▇
▇▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇ ▇▇▇▇▇, ▇▇ ▇▇▇▇▇
If to ▇▇▇▇▇:
▇▇▇▇▇▇▇ ▇. and ▇▇▇▇▇▇ ▇▇▇ ▇▇▇▇▇
▇▇▇ ▇▇▇▇ ▇▇▇ ▇▇▇▇▇▇
▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇
If to ▇▇▇▇▇▇▇▇▇▇▇:
▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇▇▇▇, Trustee
▇▇▇▇ ▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇▇▇, ▇▇ ▇▇▇▇▇
If to ▇▇▇▇▇▇▇:
▇▇▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇ and ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇
▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇
▇▇▇▇ ▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇
If to Kunitake:
▇▇▇▇▇▇ ▇. and ▇▇▇ ▇. ▇▇▇▇▇▇▇▇
▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇
▇▇▇ ▇▇▇▇▇▇
▇▇▇ ▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇
Co-Tenant Initial: /s/ GN by DEG her attorney in fact
Co-Tenancy Agreement for ▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇'▇ Henderson, NV
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.
IN WITNESS WHEREOF, The parties hereto have caused this Agreement
to be executed and delivered, as of the day and year first above
written.
REST OF PAGE INTENTIONLLY LEFT BLANK
Co-Tenant Initial: /s/ GN by DEG her attorney in fact
Co-Tenancy Agreement for ▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇'▇ ▇▇▇▇▇▇▇▇▇, NV
Noltensmeier: ▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇▇▇
By:/s/ ▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇▇▇ by ▇▇▇▇▇▇▇ ▇ ▇▇▇▇▇▇ her
attorney in fact
▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇▇▇▇
WITNESS:
(Print Name)
STATE OF Idaho)
) ss
COUNTY OF Canyon)
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.
/s/ ▇▇▇▇ ▇ ▇▇▇▇▇▇▇
Notary Public
[notary seal]
Co-Tenant Initial: /s/ GN by DEG her attorney in fact
Co-Tenancy Agreement for ▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇'▇ ▇▇▇▇▇▇▇▇▇, NV
Fund XIX: AEI Net Lease Income & Growth Fund XIX Limited Partnership
By: AEI Fund Management XIX, 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 14th day of June,
2000, ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇, President of AEI Fund Management XIX
Inc., corporate general partner of AEI Net Lease Income & Growth
Fund XIX 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/ GN by DEG her attorney in fact
Co-Tenancy Agreement for ▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇'▇ ▇▇▇▇▇▇▇▇▇, NV
EXHIBIT "A"
Legal Description
(Henderson, Nevada)
Being a division of Lot One (1) as shown upon the FINAL MAP
OF GALLERIA COMMONS 9a commercial subdivision) as depicted
in Book 79, Page 48 of Plats, Official Records, ▇▇▇▇▇
County, Nevada, also being a portion of the West Half (W
1/2) of the Southwest Quarter (SW 1/4) of Section 3,
Township 22 South, Range 62 East, M.D.M., City of ▇▇▇▇▇▇▇▇▇,
▇▇▇▇▇ County, Nevada, more particularly described as
follows:
Commencing at the West Quarter Corner (W 1/4 Cor.) of said
Section 3, said corner being common to Sections 3 and 4;
Thence South 00 14' 06" West along the West line of said
Section 3, a distance of 808.13 feet;
Thence North 88 55' 32" East, a distance of 50.01 feet to a
point on the Easterly right of way line of ▇▇▇▇▇▇▇▇▇ Street;
Thence South 00 14' 06" West along said Easterly right of
way line, a distance of 585.62 feet;
Thence South 89 45' 54" East, a distance of 20.00 feet to
the Point of Beginning;
Thence North 88 51' 28" East, a distance of 147.22 feet;
Thence South 01 05' 43" East, a distance of 108.33 feet;
Thence South 88 51' 28" West, a distance of 2.92 feet;
Thence South 00 36' 35" East, a distance of 179.31 feet;
Thence South 89 56' 32" West, a distance of 149.41 feet;
Thence North 00 14' 06" East, a distance of 284.89 feet to
the POINT OF BEGINNING.