PROPERTY CO-TENANCY
OWNERSHIP AGREEMENT
(Arby's/Mrs. Winners Restaurant - Smyrna, GA)
THIS CO-TENANCY AGREEMENT,
Made and entered into as of the 14th day of August , 1997, by and
between ▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇, Trustee and ▇▇▇▇▇ ▇. ▇▇▇▇▇, Trustee, or
their Successor Trustees of The ▇▇▇▇▇▇▇ ▇. and ▇▇▇▇▇ ▇. ▇▇▇▇▇
Trust, dated April 11, 1995 (hereinafter called "▇▇▇▇▇"), and AEI
Net Lease Income & Growth Fund XX Limited Partnership
(hereinafter called "Fund XX") (▇▇▇▇▇, Fund XX (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 XX presently owns an undivided 26.6851% interest in
and to, and ▇▇▇▇▇ presently owns an undivided 12.3188% interest
in and to, and ▇▇▇▇▇▇ presently owns an undivided 13.4236%
interest in and to, and the ▇▇▇▇ ▇. ▇▇▇▇▇▇ Living Trust presently
owns an undivided 15.8515% interest in and to and the ▇▇▇▇ ▇.
▇▇▇▇▇▇ Living Trust presently owns an undivided 19.4022% interest
in and to, and ▇▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇ Irrevocable Trust presently owns
an undivided 12.3188% interest (also referred to herein as Co-
Tenant) in and to, the land, situated in the City of Smyrna,
County of ▇▇▇▇, and State of Georgia, (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 ▇▇▇▇▇'▇ interest by
Fund XX; 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 ▇▇▇▇▇ 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 XX, or its designated agent, successors or
assigns. Provided, however, if Fund XX shall sell all of its
interest in the Premises, the duties and obligations of Fund XX
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 XX 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 XX as their sole and
exclusive agent 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
Premises, on behalf of ▇▇▇▇▇. Only Fund XX may obligate ▇▇▇▇▇
with respect to any expense for the Premises.
As further set forth in paragraph 2 hereof, Fund XX agrees to
require any Tenant of the Premises to name ▇▇▇▇▇ as an insured or
additional insured in all insurance policies provided for, or
contemplated by, any lease on the
Co-Tenant Initial: /s/ DM /s/ RCM
Co-Tenancy Agreement for Arby's/Mrs. Winners - Smyrna, GA
Premises. Fund XX shall use its best efforts to obtain
endorsements adding Co-Tenants to said policies from Tenant
within 30 days of commencement of this agreement. In any event,
Fund XX 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, expenses and any net proceeds from a sale of the
Premises 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 XX may offset against, pay to
itself and deduct from any payment due to ▇▇▇▇▇ under this
Agreement, and may pay to itself the amount of ▇▇▇▇▇'▇ share of
any legitimate expenses of the Premises which are not paid by
▇▇▇▇▇ to Fund XX or its assigns, within ten (10) days after
demand by Fund XX. In the event there is insufficient operating
income from which to deduct ▇▇▇▇▇'▇ unpaid share of operating
expenses, Fund XX 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.
▇▇▇▇▇ has no requirement to, but has nonetheless, elected to
retain, and agrees to annually reimburse, Fund XX in the amount
of $595 for the expenses, direct and indirect, incurred by Fund
XX in providing quarterly accounting and distributions of ▇▇▇▇▇'▇
share of net income and for tracking, reporting and assessing the
calculation of ▇▇▇▇▇'▇ share of operating expenses incurred from
the Premises. This invoice amount shall be pro-rated for partial
years and ▇▇▇▇▇ authorizes Fund XX to deduct such amount from
▇▇▇▇▇'▇ share of revenue from the Premises. ▇▇▇▇▇ may terminate
this agreement respecting accounting and distributions in this
paragraph at any time and seek to collect its share of rental
stream directly from the tenant; however enforcement of all
provisions of the lease remains the sole right of Fund XX
pursuant to section 1 hereof. Fund XX may terminate its
obligation under this paragraph upon 30 days notice to ▇▇▇▇▇
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 XX'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 XX 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, ▇▇▇▇▇ shall be entitled
to receive 12.3188% 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 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 XX, shall, within
fifteen (15) business days after receipt of notice, make payment
to Fund XX 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.
Co-Tenant Initial: /s/ DM /s/ RCM
Co-Tenancy Agreement for Arby's/Mrs. Winners - Smyrna, GA
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, or
set forth herein.
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
May 31, 2024 or upon the sale of the entire fee simple interest
in the 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. ▇▇▇▇▇ agrees to notify Fund XX upon the appointment
of any successor trustee, or any amendment of The ▇▇▇▇▇▇▇ ▇. and
▇▇▇▇▇ ▇▇▇▇▇ Trust affecting the powers of the Trustee to manage
or dispose of the ▇▇▇▇▇'▇ interest in the Premises.
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;
If to Fund XX:
AEI Net Lease Income & Growth Fund XX Limited Partnership
1300 Minnesota World Trade Center
▇▇ ▇. ▇▇▇▇▇▇▇ ▇▇▇▇▇▇
▇▇. ▇▇▇▇, ▇▇▇▇▇▇▇▇▇ ▇▇▇▇▇
If to ▇▇▇▇▇:
▇▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇, Trustee
▇▇▇ ▇. ▇▇▇▇▇▇ ▇▇.
▇▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇
If to ▇▇▇▇▇▇:
▇▇▇▇ ▇. ▇▇▇▇▇▇, Trustee
▇▇▇ ▇.▇. ▇▇▇▇▇▇▇ ▇▇
▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇
If to ▇▇▇▇▇▇:
▇▇▇▇ ▇. ▇▇▇▇▇▇, Trustee
▇▇▇ ▇▇▇▇▇▇▇ ▇▇.
▇▇▇▇▇▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇
Co-Tenant Initial: /s/ DM /s/ RCM
Co-Tenancy Agreement for Arby's/Mrs. Winners - Smyrna, GA
If to ▇▇▇▇▇▇:
▇▇▇▇▇ ▇▇▇▇▇▇, ▇▇.
▇▇▇▇ ▇▇▇▇▇▇▇
▇▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇
If to ▇▇▇▇▇:
▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇, Trustee
▇▇▇▇▇ ▇. ▇▇▇▇▇, Trustee
▇▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇
▇▇▇▇▇▇▇▇, ▇▇ ▇▇▇▇▇
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.
▇▇▇▇▇ The ▇▇▇▇▇▇▇ ▇. and ▇▇▇▇▇ ▇. ▇▇▇▇▇ Family Trust, dated April 11, 1995
By: /s/ ▇▇▇▇▇▇▇ ▇ ▇▇▇▇▇
▇▇▇▇▇▇▇ ▇. ▇▇▇▇▇, Trustee
By: /s/ ▇▇▇▇▇ ▇▇▇▇▇
▇▇▇▇▇ ▇. ▇▇▇▇▇, Trustee
Witness By: /s/ ▇▇▇▇▇▇ ▇ ▇▇▇
Witness By: /s/ ▇▇▇▇▇▇ ▇ ▇▇▇
STATE OF California)
) ss
COUNTY OF Los Angeles)
The foregoing instrument was acknowledged before me, a
Notary Public in and for the County and State aforesaid,
this 1 day of August, 1997, by ▇▇▇▇▇▇▇▇ ▇ ▇▇▇▇▇▇, Notary
Public.
Fund XX AEI Net Lease Income & Growth Fund XX Limited Partnership
By: AEI Fund Management XX, Inc., its corporate general partner
By: /s/ ▇▇▇▇▇▇ ▇ ▇▇▇▇▇▇▇
▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇, President
Witness By:/s/ ▇▇▇▇ ▇ ▇▇▇▇▇▇▇▇
Witness By: /s/ ▇▇▇▇ ▇ ▇▇▇▇▇▇▇▇▇▇
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 August,
1997, ▇▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇, President of AEI Fund Management XX,
Inc., corporate general partner of AEI Real Estate Fund XX
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/ DM /s/ RCM
Co-Tenancy Agreement for Arby's/Mrs. Winners - Smyrna, GA
EXHIBIT "A"
ALL THAT TRACT or parcel of land lying and being in Land
Lots 688, 689,752 and 753 of the 17th District, 2nd Section
of ▇▇▇▇ County, Georgia, containing 1.071 acres, same being
more particularly described as follows:
TO FIND THE TRUE POINT OF BEGINNING, begin at the point of
intersection of the westerly Right-of-Way Line of South ▇▇▇▇
Drive (Two-hundred (200') foot Right-of-Way) and of the
southerly Right-of-Way Line of Kenwood Road (Fifty(50') foot
Right-of-Way); thence traveling along the westerly Right-of-
Way Line of said ▇▇▇▇▇ ▇▇▇▇ ▇▇▇▇▇ ▇▇▇▇▇ ▇▇ degrees 59
minutes 32 seconds east a distance of 36.03 feet to a point
on said Right-of-Way Line; thence continuing along said
Right-of-Way Line south 09 degrees 19 minutes 41 seconds
east a distance of 166.01 feet to a point on said Right-of-
Way Line; thence continuing along said Right-of-Way Line
along a curve to the left an arc distance of 18.12 feet
(said arc being subtended by a chord bearing south 11
degrees 12 minutes 11 seconds east a chord distance of 18.12
feet and having a radius of 2,964.79 feet) to an iron pin
set on said Right-of-Way Line and at the southeast corner of
property now or formally owned by Wendy's International,
Inc., which iron pin set is the TRUE POINT OR BEGINNING;
FROM THE TRUE POINT OF BEGINNING as thus established
continuing along said Right-of-Way Line along a curve to the
left an arc distance of 161.96 feet (said arc being
subtended by a chord bearing south 12 degrees 56 minutes 36
seconds east a chord distance of 161.94 feet and having a
radius of 2,964.79 feet) to an iron pin set on said Right-of-
Way Line and at the northeast corner of the property now or
formerly owned by Checkers Restaurant; thence leaving said
Right-of-Way Line and traveling along the northwesterly line
of said Checkers property south 71 degrees 15 minutes 52
seconds west a distance of 221.74 feet to an iron pin set;
thence traveling north 18 degrees 44 minutes 08 seconds west
a distance of 131.18 feet to an iron pin set at the
southwest corner of said Wendy's property; thence traveling
along the southeasterly line of said Wendy's property south
82 degrees 28 minutes 25 seconds east a distance of 200.76
feet to an iron pin set, and the TRUE POINT OF BEGINNING.
ALL AS SHOWN on that certain survey for RTM Georgia, Inc.,
prepared by ▇▇▇▇▇▇▇-▇▇▇▇▇▇▇ & Associates, bearing the seal
of ▇▇▇▇▇ ▇. ▇▇▇▇▇▇▇, Georgia Registered Land Surveyor Number
1478, dated January 17, 1994, last revised May 10, 1994.
TOGETHER WITH all rights with respect to the above property
reserved in Limited Warranty Deed from ▇▇▇▇▇▇ Financial
Corporation, a Florida Corporation to Wendy's International,
Inc. an Ohio Corporation, dated December 26, 1989, filed for
record December 28, 1989 at 2:01 p.m., recorded in Deed Book
5590, Page 288, Records of ▇▇▇▇ County, Georgia.
TOGETHER WITH all rights with respect to the above property
reserved in that certain Limited Warranty Deed from American
Founders Life Insurance Company, a Texas corporation to
▇▇▇▇▇▇ ▇. ▇▇▇▇▇, dated June 8, 1992, filed for record June
9, 1992 at 10:21 a.m., recorded in Deed Book 6682, Page 118,
aforesaid Records.
TOGETHER WITH all rights with respect to the above property
set forth in Easement Grant by and between ▇▇▇▇▇▇ Financial
Corporation, a Florida corporation and Wendy's
International,.Inc., an Ohio corporation, dated December 26,
1989 at 2:01 p.m., recorded in Deed Book 5590, Page 291,
aforesaid Records; as amended b that certain Amendment to
easement Grant, dated June 30, 1993, filed for record July
1, 1993 at 2:15 p.m., recorded in Deed Book 7448, Page 421,
aforesaid Records.
TOGETHER WITH all rights with respect to the above property
set forth in Easement Agreement by and between American
Founders Life Insurance Company, a Texas corporation and
▇▇▇▇▇▇ ▇. ▇▇▇▇▇, dated June 8, 1992, filed for record June
9, 1992 at 10:21 a.m., recorded in Deed Book 6682, Page 123,
aforesaid Records; as amended by that certain Amendment to
Easement Agreement, dated June 30. 1993, filed for record
July 1, 1993 at 2:15 p.m., recorded in Deed book 7448, Page
433, aforesaid Records.
TOGETHER WITH all rights granted in that certain Sign
Easement by and between American Founders Life Insurance
Company, a Texas corporation and RTM Georgia, Inc., dated
June 30, 1993, filed for record July 1, 1993 at 2:15 p.m.,
recorded in Deed Book 7448, Page 467, aforesaid Records.
TOGETHER WITH all rights granted in that certain New
Driveway Easement Grant by and between American Founders
Life Insurance Company and RTM Georgia, Inc., dated June
30,1 993, filed for record July 1, 1993 at 2:15 p.m.,
recorded in Deed Book 7448, Page 450, aforesaid Records.