PROPERTY CO-TENANCY
OWNERSHIP AGREEMENT
(Timber Lodge Steakhouse - Rochester, MN)
THIS CO-TENANCY AGREEMENT,
Made and entered into as of the 1st day of November, 2000, by and
between Xxxx X. Xxxxxxxx and Xxxx X. Xxxxxxxx as trustees for the
Xxxxxxxx trust dated 11/27/85 (hereinafter called "Xxxxxxxx"),
and AEI Real Estate Fund XVII Limited Partnership (hereinafter
called "Fund XVII"). Xxxxxxxx, Fund XVII (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 XVII presently owns an undivided 65.5178% interest
in and to, and Xxxxxxxx presently owns an undivided 11.2924%
interest in and to, and Garden Ridge Development LCC presently
owns an undivided 13.1073% interest in and to, and Xxxxxx X. Park
and Xxxxxx Xxx Xxxx, married as joint tenants presently own an
undivided 10.0825% interest in and to the land situated in the
City of Rochester, County of Olmsted, and State of MN, (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 Thompkin's interest
by Fund XVII; 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 Xxxxxxxx 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 XVII, or its designated agent, successors or
assigns. Provided, however, if Fund XVII shall sell all of its
interest in the Premises, the duties and obligations of Fund XVII
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 XVII 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.
Xxxxxxxx hereto hereby designates und XVII as its sole and
exclusive agent to deal with, and Fund XVII 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
XVII, monitor, execute and enforce the terms of leases of space
Co-Tenant Initial: /s/ JET /s/ TJT
Co-Tenancy Agreement for Timber Lodge-Rochester, MN
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 Xxxxxxxx. As long as Fund XVII owns an
interest in the Premises, only Fund XVII may obligate Xxxxxxxx
trust with respect to any expense for the Premises.
As further set forth in paragraph 2 hereof, Fund XVII agrees to
require any lessee of the Premises to name Xxxxxxxx as an insured
or additional insured in all insurance policies provided for, or
contemplated by, any lease on the Premises. Fund XVII 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 XVII 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 XVII may offset
against, pay to itself and deduct from any payment due to under
this Agreement, and may pay to itself the amount of Thompkin's
share of any reasonable expenses of the Premises which are not
paid by Xxxxxxxx to Fund XVII or its assigns, within ten (10)
days after demand by Fund XVII. In the event there is
insufficient operating income from which to deduct Thompkin's
unpaid share of operating expenses, Fund XVII 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.
Xxxxxxxx has no requirement to, but has, nonetheless elected to
retain, and agrees to annually reimburse, Fund XVII in the amount
of $784.00 for the expenses, direct and indirect, incurred by
Fund XVII in providing Xxxxxxxx with quarterly accounting and
distributions of Thompkin's share of net income and for tracking,
reporting and assessing the calculation of Thompkin's share of
operating expenses incurred from the Premises. This invoice
amount shall be pro-rated for partial years and Xxxxxxxx
authorizes Fund XVII to deduct such amount from Thompkin's share
of revenue from the Premises. Xxxxxxxx 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
XVII pursuant to Section 1 hereof. Fund XVII may terminate its
obligation under this paragraph upon 30 days notice to Xxxxxxxx
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 XVII'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
Co-Tenant Initial: /s/ JET /s/ TJT
Co-Tenancy Agreement for Timber Lodge-Rochester, MN
end of each calendar year during the term hereof, Fund XVII 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, Xxxxxxxx shall
be entitled to receive 11.2924% 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 therefore from Fund XVII, shall,
within fifteen (15) business days after receipt of notice, make
payment to Fund XVII 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 January
15, 2028, 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 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;
Co-Tenant Initial: /s/ JET /s/ TJT
Co-Tenancy Agreement for Timber Lodge-Rochester, MN
If to Fund XVII:
AEI Real Estate Fund XVII Limited Partnership
1300 Minnesota World Trade Center
00 X. Xxxxxxx Xxxxxx
Xx. Xxxx, Xxxxxxxxx 00000
If to: Xxxxxxxx, Xxxx X. Xxxxxxxx and Xxxx X. Xxxxxxxx,
as trustees for the Xxxxxxxx trust dated
11/27/85
X/X Xxxx X. Xxxxxxxx
000 Xxxxxxxx Xxxxx
Xxxxxxx, XX 00000
If to: Garden Ridge Development LLC
0000 X 000xx Xxxxxx
Xxxxxxxxx, XX 00000
If to: Xxxxxx X. Park and Xxxxx Xxx Xxxx
000 Xxx Xxxxx
Xxxxxx, XX 00000
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.
Co-Tenant Initial: /s/ JET /s/ TJT
Co-Tenancy Agreement for Timber Lodge-Rochester, MN
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.
Xxxx X. Xxxxxxxx and Xxxx X. Xxxxxxxx, as trustees for the
Xxxxxxxx trust dated 11/27/85.
By:/s/ Xxxx X Xxxxxxxx Trustee
Xxxx X. Xxxxxxxx
By: /s/ Xxxx X Xxxxxxxx Trustee
Xxxx X. Xxxxxxxx
STATE OF CALIFORNIA) [notary seal]
) ss
COUNTY OF SHASTA)
I, a Notary Public in and for the state and county of aforesaid,
hereby certify there appeared before me this 31 day of October,
2000, Xxxx X Xxxxxxxx Xxxx X Xxxxxxxx, who executed the foregoing
instrument in said capacity.
/s/ X Xxxxxxx
Notary Public
WITNESS:
/s/ Xxxx Xxxxxxx
Xxxx Xxxxxxx
(Print Name)
Co-Tenant Initial: /s/ JET /s/ TJT
Co-Tenancy Agreement for Timber Lodge-Rochester, MN
Fund XVII: AEI Real Estate Fund XVII Limited Partnership
By: AEI Fund Management XVII, Inc., its corporate general
partner
By:/s/ Xxxxxx X Xxxxxxx
Xxxxxx X. Xxxxxxx, President
WITNESS:
/s/ Xxxxxxxx Xxxx
Xxxxxxxx Xxxx
(Print Name)
State of Minnesota )
) ss.
County of Xxxxxx )
I, a Notary Public in and for the state and county of aforesaid,
hereby certify there appeared before me this 1st day of November,
2000, Xxxxxx X. Xxxxxxx, President of AEI Fund Management XVII,
Inc., corporate general partner of AEI Real Estate Fund XVII
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/ Xxxxxxx X Xxxxxx
Notary Public
[notary seal]
Co-Tenant Initial: /s/ JET /s/ TJT
Co-Tenancy Agreement for Timber Lodge-Rochester, MN
EXHIBIT "A"
Xxx 0, Xxxxx 0, Xxxxxxxxxx First Subdivision, in the City of
Rochester, Olmsted County, Minnesota, together with Cross
Easement Agreement dated December 30, 1996, recorded January 23,
1997, as Document No. 744314.
