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The Cloisters on
Wadsworth
2103 S. Wadsworth L.L.C.
Vacation Incentive Program (“VIP”)
Terms and Conditions
The basic
terms and conditions under which office and/or training/event facility lease
holders (“Tenants”) can earn Vacation Intervals from 2103 S. Wadsworth L.L.C.
(“Landlord”) follow:
1.
A Vacation Interval is defined as a seven
(7) - day vacation week (customarily in a 2-bedroom facility with full kitchen)
available through the Resort Condominium International (“RCI”) Directory of
Resorts.
2.
The fair
market value of a Vacation Interval is presently set at $2,100 ($300.00 per day)
and Tenants may accrue Vacation Intervals at the rate of $1.00 of vacation value
for each $2.00 of lease value.
Accordingly,
Vacation
Intervals per Lease Term = Lease Value
$4, 200
3.
Tenants
must accrue and use Vacation Intervals in whole units only and must utilize
these units within the Lease Term or they will be forfeited.
However, any unearned fractions of whole Vacation Intervals can be
carried forward to a subsequent Lease Term or converted to a cash refund, at
lease termination, at the rate indicated in Article 7 herein.
In the case of any carry-forwards, fractions will be rounded UP to the
nearest tenth. Additionally, no
Tenant may accrue or utilize more than six (6) Vacation Intervals per twelve
(12)-month period regardless of Lease Value or Term.
(See attached Examples for details.)
4.
This VIP
is only available to Tenants with a Lease Term of one (1) year or more.
However, Tenants with a Lease Term of more than one year may utilize
their Vacation Intervals anytime during that Lease Term subject, of course, to
the other terms and conditions herein.
5.
Should
Tenant be in default under any of the terms of the Lease, it shall be
responsible for reimbursing Landlord for any Vacation Intervals it may have
taken but not yet earned to the date of such default of $500.00 per Vacation
Interval or portion thereof.
Furthermore, at its sole option, Landlord may require a good faith deposit at
the rate of $500.00 per Vacation Interval from any Tenant electing to utilize
Vacation Intervals not yet earned.
6.
Requests
for specific Vacation Intervals from the RCI Directory of Resorts will be
processed on a first-come-first-served basis and the location and timing of
specific Vacation Intervals will always be subject to availability.
Accordingly, Tenants are encouraged to submit their formal request for a
specific interval or intervals with as much advance notice as is reasonably
possible. Furthermore, Landlord’s
responsibility to secure specific Vacation Intervals for any eligible Tenant
shall be limited to its reasonable best efforts with respect to those specific
Intervals or at Tenant’s option, a suitable alternative.
7.
While it
is the present intention of Landlord that this VIP will continue to be available
to Tenants from one Lease Term to another, Landlord reserves the right to
terminate this VIP at any time upon sixty (60)-day written notice to that effect
to all eligible Tenants. In the
event of such termination by Landlord, however, Landlord and Tenant shall honor
all of the terms and conditions of the Lease then in effect.
Additionally, Landlord and Tenant acknowledge that this VIP shall
terminate at any time that Vacation Intervals are no longer available to
Landlord through no fault of its own.
However, in such event, Landlord shall be obligated to provide earned
Vacation Intervals to eligible Tenants from other sources that may be available
to Landlord or to pay Tenants for earned Vacation Intervals so forfeited at the
rate of $500.00 per vacation interval or portion thereof.
2103 S. Wadsworth L.L.C.
Vacation Incentive Program (“VIP”)
Examples
Example 1.
Tenant enters into a one-year lease on an office suite comprising 1,000
rentable square feet at $15.00/rentable square foot:
One-year Lease Value = 1,000 rsf x $15.00/rsf =
$15,000 ($1,250/mo)
RCI Vacation Intervals = $15,000 = 3.57
$ 4,200
which
translates into 3 full RCI vacation weeks during the one-year term plus a carry
forward of 0.60 vacation weeks to a future lease (or a refund at lease
termination of $185.00 ($500.00 x 0.57).
Example 2.
Tenant enters into a two-year lease on an office suite comprising 1,000
rentable square feet at $15.00/rentable square foot:
Two-year Lease Value = 1,000 rsf x $15.00/rsf x 2
years = $30,000 ($1,250/mo)
RCI Vacation Intervals = $30,000 = 7.14
$ 4,200
which
translates into 7 full RCI vacation weeks during the two-year term (up to 6 of
which could be taken in the first 12-month period) plus a carry-forward of 0.2
vacation weeks to a future lease or a refund at lease termination of $70.00
($500.00 x .14).
Example 3.
Tenant enters into a two-year lease on a single office comprising 150
rentable square feet at $14.00/rentable square foot:
Two-year Lease Value = 150 rsf x $14.00/rsf x 2
years = $4,200 ($l75.00/mo)
RCI Vacation Intervals = $4,200 = 1.00
$4,200
which
full RCI vacation week can be taken anytime during the two-year term.
Example 4.
Tenant enters into a two-year lease for the use of the training
facilities at the rate of four hours ($60.00/week):
Two-year Lease Value = $60.00 x 52 weeks x 2 years
= $6,240 ($260.00/mo)
RCI Vacation Intervals = $6,240 = 1.49
$4,200
which
translates into one full week per two-year term plus a carry-forward of 0.5
vacation weeks to a future lease or a refund at lease termination of $245.00
($500.00 x .49).
Example 5.
Tenant enters into a one-year lease on a single office comprising 185
rentable square feet at $15.00 per rentable square foot AND a one-year lease for
the use of the training facilities at the rate of one day per month
($120.00/mo):
One-year Lease Value = 185 rsf x $15.00/rsf PLUS
$120.00/mo x 12 mos = $4,215 ($351.25/mo)
RCI Vacation Intervals = $4,215 = 1.00
$4,200
which
full RCI vacation week can be taken anytime during the one-year term.
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