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REFLECTIONS HALLMARK

JEFF DRUMREAL ESTATE DIRECTOR SOUTHEAST2260WILDWOD LAKE DRIVE

SUWANEE, GA 30024

Dear Jeff:

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

September 9,2009

As 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 openedfor several months after that.

2. The center of the Plaza area where we are located is mostly 2/3 stories. There are mostly notenants on these floors.

3. At the time the center was being leased, 2004, OS, 06 there were not the economic problems wehave 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 Plazasits 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- toend on the same date as original option. This would help cover losses on marked downitems without paying % rent on these losses.

b. Stay with original option date but lower rents and higher percentages on exclusionsfrom gross rent.

c. Do they care if we stay or go-if we don't get reduced occupancy costs we can justwalk 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,

............................

September 9, 200~Page2

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

FAXDate: 9/1109

Total # of Pages Sent(including cover sheet)

PLEASE DELIVER TO:

31955·201 North Federal Highway

Pompano Beach, FL 33062Tel: (954) 943-4683

FAX#:

1. Mickey

2.

3.

FROM:

Shana

1.

2.

3.

954-753-7224

954-943-5469

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 privilegedand/or confidential and is intended only for the use of theperson to whom it is addressed. If the reader of the messageis not the intended reciJ)ient (or such recipient's employee oragent), you are hereby notified not to read, distribute or copythe materials attached hereto without the prior writtenconsent of the sender. If you have received this telecopy inerror, please notify the sender by telephone. Thank you.

HARD COPY TO FOLLOW:

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DIRECT DIAL #:

954·943-4683

Retail Real Estate Lease Activity WorksheetFor Regional Malls - Strip - Community Centers

~'Fax:Retailer's E-mail:

City/St./ZIP:

NamcIPhonc

Retailer's AttorneylPhone: _

Owner's Name:

Address:

Store Name: Account No:

IR eta i I e r In for mat ion:

City/State/ZIP:

Anchors: (Supermarket, Drug, Dept. Store, etc.)

~'Wf

Contact:

Phone No:

Address:

20 Center Sales (Per Square Foot)

City/State: .

No. of Vacant Sttes in Center: 3-

ILeasing Contact:

Company Name: _5 _

FAXNo: ?()'f- 97?--______ I_n_f_o_r_m_a_t_i_o_n_: 1

Center Size: (GLA) J 5"":g:

Other Card Distribution in Center: (Exclude Anchors)N~

(Slore Name, Resource, Type Store)

Nt

NA(Slore Name, Resource, Type Slore)

/VA(Slore Name, Resource, Type Slore) (Store Name, Resource, Type Store)

IAT Analysis:Increase/Decrease

yt- 2009 $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: , ?b. Ma~tenance: ~: ~~=Tc. Leasrng: ~ _ ~''\d. Marketing/Promo: '. ~

3. Wh:t~~:ou ~~~b. Dislike: ~ --/A..t'h

Term:

ICurrent Lease Information:

Commencement Date:~h) () Lease Expires On: 2/~1/ ?-ei/ /

Length of Options:

Percentage Rent: -J.../1.- % Breal{point: I $ 4' ,Options: (Yes) (No) # Options:

Base Rent.1 f'~ -h

Years AnnualPSF Additional Charges:Annual NNN Cost Increases:

$$C.A.M:fO(;, ..•. $20: %--- -----

--$-$Taxes--PSF$ 20%-----$

Insurance:PSF$ 20%~. -----$ $----Other: PSF$--

20: %--- -----Total: %!)(),OoPSF

$ 20: %-----

Current Rent/Sales Ratio: Occupancy Costs = (Base Rent + Additional Charges)Formula: 20~ $ 'I9)"L,()(I(Occupancy Costs)/$ 'I (Sales) = Cf,q'l. %(Ratio)

Total Sales: _

IStore Information & History:

Store Size: :5t.~tl

Expa.,i•• Pia." (Ye,)&Size Desired: 3'.3 tJ

Hallmark Sales:

Allied Sales:

-%

(Current Year)

Total Sales)2020

20

r

(Last full Year)

Percentage of floor space dev ed toHallmark Products:

Projected Sales:

Sales Projections:2020

20

Do you plan to sell your store? (Yes)? (No)

If Yes, plea~ comment: 7 ':'"ctA2~.!l ~I

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 _

Tenant:

What competition has entered your center in the last Five (5) years?

Tenant: Iv Size: NfJ1/ . Size: / j/ li"

s.£ Year Opened: __

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 1/062

IProposal Information

Total Rent you are willin~ to pay?Term Desired: S +5(3,5, IO yr. elc.)

.5'hOther Conditions:

./'

nually or Monthly-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 yourLandlord on your behalf. Please send the required enclosures.

Retailer Signature: Date: 7/40fReferred 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 signing6. Shopping Center Monthly Invoice

Lease Renewal Worksheet 1/063