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REFLECTIONS HALLMARK

JEFF DRUM                                                                  September 9,2009
REAL ESTATE DIRECTOR SOUTHEAST
2260WILDWOD LAKE DRIVE
SUWANEE, GA 30024

Dear Jeff:

Re: Reflections option renewal rent reduction..()44811

As per our conversations please find enclosed completed lease activity worksheets along with a
monthly rent invoice. I am giving you some information about the Plaza which should help in any
negotiations:

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 existent

5.   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 don't 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,



                                      ............................
Page2
September 9, 200~
         Mickey Berk

         mickanmo@aol.com-   phone-954-943-2780-cell   954-856-] 013-fax-954-753-7224

         Sent via e-mail

         Cc: Bill berk
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 recipient's 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.
Retail Real Estate Lease Activity Worksheet
                                    For         Regional    Malls - Strip   - Community   Centers

IR eta     iIe r     In for           mat            ion:

Store Name:                                                                                Account No:

Address:

City/St./ZIP:

Owner's Name:
                                                                                            ~'Fax:
Retailer's AttorneylPhone:                                                      _   Retailer's E-mail:
                                        NamcIPhonc




ILeasing           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:                                                 .
                                                                                               ~'Wf

No. 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:                                                    ~               --/A..t'h
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,q'l. %(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./               ;krp3~91'2-~
  Lease Renewal Worksheet     1/06
                                                                                       2
IProposal                   Information
                                                                                                          ./'
                                                             .5'h                                         nually or Monthly
                   +         S 5
Term 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)   6'

Would 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           f
Referred 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 Invoice



Lease Renewal Worksheet          1/06
                                                                               3

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Scan0003

  • 1. [Click here and type return address] REFLECTIONS HALLMARK JEFF DRUM September 9,2009 REAL ESTATE DIRECTOR SOUTHEAST 2260WILDWOD LAKE DRIVE SUWANEE, GA 30024 Dear Jeff: Re: Reflections option renewal rent reduction..()44811 As per our conversations please find enclosed completed lease activity worksheets along with a monthly rent invoice. I am giving you some information about the Plaza which should help in any negotiations: 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 existent 5. 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 don't 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. Page2 September 9, 200~ Mickey Berk mickanmo@aol.com- phone-954-943-2780-cell 954-856-] 013-fax-954-753-7224 Sent via e-mail Cc: Bill berk
  • 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 recipient's 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. Retail Real Estate Lease Activity Worksheet For Regional Malls - Strip - Community Centers IR eta iIe r In for mat ion: Store Name: Account No: Address: City/St./ZIP: Owner's Name: ~'Fax: Retailer's AttorneylPhone: _ Retailer's E-mail: NamcIPhonc ILeasing 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: . ~'Wf No. 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: ~ --/A..t'h
  • 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,q'l. %(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./ ;krp3~91'2-~ Lease Renewal Worksheet 1/06 2
  • 6. IProposal Information ./' .5'h nually or Monthly + S 5 Term 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) 6' Would 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 f Referred 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 Invoice Lease Renewal Worksheet 1/06 3