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  1. 1. [Click here and type return address]REFLECTIONS HALLMARKJEFF DRUM September 9,2009REAL ESTATE DIRECTOR SOUTHEAST2260WILDWOD LAKE DRIVESUWANEE, GA 30024Dear Jeff:Re: Reflections option renewal rent reduction..()44811As per our conversations please find enclosed completed lease activity worksheets along with amonthly rent invoice. I am giving you some information about the Plaza which should help in anynegotiations:1. We were the first store to open in the Plaza at the end of October 2005. No other stores opened for several months after that.2. The center of the Plaza area where we are located is mostly 2/3 stories. There are mostly no tenants on these floors.3. At the time the center was being leased, 2004, OS, 06 there were not the economic problems we have today and the center should have had more leasing and better merchandising ofthe center.4. The Center to this day has never had a grand opening and has very few promotions. As the Plaza sits back and is hidden from the street by the tall 3 story Tower. Promos are basically not existent5. Things to think about on this renewal: a. Take option now with reduced rent and expanded % on excluded items from gross- to end on the same date as original option. This would help cover losses on marked down items without paying % rent on these losses. b. Stay with original option date but lower rents and higher percentages on exclusions from gross rent. c. Do they care if we stay or go-if we dont get reduced occupancy costs we can just walk away-who needs who the most-us or them? d. Take option as in "a" and add another 5 year option Jeff thanks for your help and I look forward to speaking with you soon.Sincerely, ............................
  2. 2. Page2September 9, 200~ Mickey Berk phone-954-943-2780-cell 954-856-] 013-fax-954-753-7224 Sent via e-mail Cc: Bill berk
  3. 3. FROM (TUE)SEP 1 2009 10:51/ST. 10:51/Ho.7500000413 P FAX Date: 9/1109 1955·201 North Federal Highway Total # of Pages Sent 3 Pompano Beach, FL 33062 (including cover sheet) Tel: (954) 943-4683 PLEASE DELIVER TO: FAX#: 1. Mickey 1. 954-753-7224 2. 2. 3. 3. FROM: Shana 954-943-5469 HARD COPY TO FOLLOW: MESSAGE: Mickey: September rent breakdown: $ 265.00- Storage Rent $3,957.25- Hallmark Rent $4,222.25- Total amount due for September The infonnation contained in this telecopy may be privileged TRANSMITTED BY: and/or confidential and is intended only for the use of the person to whom it is addressed. If the reader of the message is not the intended reciJ)ient (or such recipients employee or DIRECT DIAL #: agent), you are hereby notified not to read, distribute or copy the materials attached hereto without the prior written 954·943-4683 consent of the sender. If you have received this telecopy in error, please notify the sender by telephone. Thank you.
  4. 4. Retail Real Estate Lease Activity Worksheet For Regional Malls - Strip - Community CentersIR eta iIe r In for mat ion:Store Name: Account No:Address:City/St./ZIP:Owners Name: ~Fax:Retailers AttorneylPhone: _ Retailers E-mail: NamcIPhoncILeasing Contact:Company Name: _5 _ Contact:Address: City/State/ZIP:Phone No: FAXNo: ?()f- 97?--______ I_n_f_o_r_m_a_t_i_o_n_: 1 Center Size: (GLA) J 5"":g: Anchors: (Supermarket, Drug, Dept. Store, etc.)City/State: . ~WfNo. of Vacant Sttes in Center: 3-20 Center Sales (Per Square Foot)Other Card Distribution in Center: (Exclude Anchors) N~ NA (Slore Name, Resource, Type Store) (Slore Name, Resource, Type Slore) Nt /VA (Slore Name, Resource, Type Slore) (Store Name, Resource, Type Store) IAT Analysis: , yt- 2009 $ Increase/Decrease 20ll $ 20-"4 $1. Is the Center operated by th andlor r a Management Company? (Circle)2. How is the center currently operated as it relates to: , a. Management: , ? c. Leasrng: b. Marketing/Promo: d. Ma~tenance: ~ . ~: ~ ~~=T _ ~3. Wh:t~~:ou ~~~ b. Dislike: ~ --/
  5. 5. ICurrent Lease Information: Term: Commencement Date:~h) () Lease Expires On: 2/ ~1/ ?-ei/ / Options: (Yes) (No) # Options: Length of Options: Base Rent.1 f~ -h Percentage Rent: -J.../1.- % Breal{point: I $ 4 , Years PSF 20------ : $ PSF$----$ %$ -- $ PSF Insurance: SF Annual 20 fO(;, C.A.M: $PSF %!)(),Oo Taxes P Annual NNN Cost Increases: ..•. Other: Additional Charges: ----- Current Rent/Sales Ratio: Occupancy Costs = (Base Rent + Additional Charges) I I - Formula: 20~ $ 9) "L,()(I(Occupancy Costs)/$ (Sales) = Cf,ql. %(Ratio) IStore Information & History: Store Size: :5t.~ tl Hallmark Sales: 3.3 & Allied Sales: Expa.,i•• Pia." (Ye,) Size Desired: tJ Total Sales: _ (Last full Year) Do you plan to sell your store? (Yes)? (No) Percentage of floor space dev ed to Hallmark Products: % ctA2~.!l If Yes, plea~ comment: ~ 7 :" I Projected Sales: (Current Year) Sales Projections: Total Sales) 20 20 20 20 20 20 r What new competition has entered the market in the last Five (5) years? . Center: /II ;q.- Majors: __ /~1;;_1_9 _ Center: /V tt Majors: _rv~A _ What competition has entered your center in the last Five (5) years? Tenant: Iv Size: N fJ s.£ Year Opened: __ Tenant: 1/ . Size: / j/ li" s.f. Year Opened: _ How many Gold Crown Card Members do you have enrolled! Last three Years y~? 1: 5 yf£ 2: Lf Y l./ ;krp3~912-~ Lease Renewal Worksheet 1/06 2
  6. 6. IProposal Information ./ .5h nually or Monthly + S 5Term Rent you are willin~ to pay?Total Desired: (3,5, IO yr. elc.) Other Conditions: -1vV --"1eJ« ,..~ Cap, No Radius elc.)Any Conditions in you present lease you would like removed? (Yes) (No) ~-~~~~~/Do you plan to r~modellupdate your business? (Yes) &Have you remodeled/updated your store in the last few years? (If Yes please explain): ~) ~ Mv, I-oy) 6Would you like to relocate or expand within your center? (Yes)~H Yes Explain: (Show the location on the center site plan)IRent Relief Business Case (if applicable) Please sign below. Your approval is required before Hallmark can contact your Landlord on your behalf. Please send the required enclosures.Retailer Signature: Date: 7/40 fReferred By: Date: _ (SM - SDS - ARSDM - RRSDM)Required Enclosures: 1. Copy of Existing Lease (Must have, cannot start without this CODV) N . Correspondence from Landlord regarding renewal, if any. 3. Center Site Plan (Show vour location, anv vacancies and all other tenants) 4. Current Profit & Loss Statement 5. Picture of Store Front with signing 6. Shopping Center Monthly InvoiceLease Renewal Worksheet 1/06 3