Introduction

1. Introduction • Stig German Mathiasen • Attorney-at-Law, Partner Rønne & Lundgren Law Firm 40+ lawyers • Real Estate team of 12 specialised experts within all aspects of real estate transactions, financing, structuring, tenancies, development and construction Præsentation

2. What the landlordreallywants … • NO rent risk! • (and to get as much as possible in rent payments) Præsentation

3. What the tenantreallywants … • NO propertyexpenserisk! • (and to pay as little as possible in rent) Præsentation

4. Common types of rent clauses • Turnover rent • minimum rent (adjusted by index or by turnover in previous years) • possibility of adjustment of minimum rent to market rent • property expenses (all or some) paid on the side • Fixed rent • annually adjusted by index • possibility of market rent adjustment • property expenses (all or some) paid separately Præsentation

5. Turnover rent from the landlord’sperspective • Disadvantages • Risk of rent payments below market rent in case of under-performance • Limited possibilities of reaction in case of underperforming tenants • Advantages • Possibility of upside • Appear more attractive for tenants with reduced property expenses in case of underperformance Some challenges: • Fixing of rent percentage - Internet sale – Monitoring of turnover – Adjustment to market rent – Application of minimum rent – Underperformance Præsentation

6. Turnover rent from the tenant’sperspective • Disadvantages • Obligation to share upside with landlord • May undesirably influence price setting principles to keep up contribution margin • Advantages • Reduced property expenses in case of underperformance • Rent payments proportional to performance Some challenges: Fixing of rent percentage - Internet sale – Monitoring of turnover – Adjustment to market rent – Application of minimum rent - Underperformance Præsentation

7. What the parties oftenshouldbediscussing … Præsentation