<html><head><meta http-equiv="Content-Type" content="text/html; charset=utf-8"></head><body style="word-wrap: break-word; -webkit-nbsp-mode: space; line-break: after-white-space;" class="">Erik, I have not seen that argument made in Washington or California. My reaction is the claim does not make much sense, but there may be language in the lease two make the argument. I’ve not seen any, and since the grants are typically targeted for rent or paying salaries, aren’t they more akin to loans? <div class=""><br class=""><div class="">If there is any chance the tenant can get back on their feet, there are much more constructive ways to use percentage-rent mechanisms to create a mutually beneficial interim rental agreement.</div><div class=""><br class=""></div><div class="">In retail real estate, sales determine value for both retailer and landlord, whether or not there is a percentage rent clause.</div><div class=""><br class=""></div><div class=""><div class="">
<meta charset="UTF-8" class=""><div dir="auto" style="caret-color: rgb(0, 0, 0); color: rgb(0, 0, 0); letter-spacing: normal; text-align: start; text-indent: 0px; text-transform: none; white-space: normal; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration: none; word-wrap: break-word; -webkit-nbsp-mode: space; line-break: after-white-space;" class=""><div dir="auto" style="caret-color: rgb(0, 0, 0); color: rgb(0, 0, 0); letter-spacing: normal; text-align: start; text-indent: 0px; text-transform: none; white-space: normal; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration: none; word-wrap: break-word; -webkit-nbsp-mode: space; line-break: after-white-space;" class=""><div dir="auto" style="caret-color: rgb(0, 0, 0); color: rgb(0, 0, 0); letter-spacing: normal; text-align: start; text-indent: 0px; text-transform: none; white-space: normal; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration: none; word-wrap: break-word; -webkit-nbsp-mode: space; line-break: after-white-space;" class=""><div dir="auto" style="text-align: start; text-indent: 0px; word-wrap: break-word; -webkit-nbsp-mode: space; line-break: after-white-space;" class=""><div dir="auto" style="text-align: start; text-indent: 0px; word-wrap: break-word; -webkit-nbsp-mode: space; line-break: after-white-space;" class=""><div dir="auto" style="text-align: start; text-indent: 0px; word-wrap: break-word; -webkit-nbsp-mode: space; line-break: after-white-space;" class=""><div dir="auto" style="text-align: start; text-indent: 0px; word-wrap: break-word; -webkit-nbsp-mode: space; line-break: after-white-space;" class=""><div dir="auto" style="text-align: start; text-indent: 0px; word-wrap: break-word; -webkit-nbsp-mode: space; line-break: after-white-space;" class=""><div dir="auto" style="text-align: start; text-indent: 0px; word-wrap: break-word; -webkit-nbsp-mode: space; line-break: after-white-space;" class=""><div dir="auto" style="caret-color: rgb(0, 0, 0); color: rgb(0, 0, 0); letter-spacing: normal; text-transform: none; white-space: normal; word-spacing: 0px; text-decoration: none; -webkit-text-stroke-width: 0px; text-align: start; text-indent: 0px; word-wrap: break-word; -webkit-nbsp-mode: space; line-break: after-white-space;" class=""><font color="#5b5b5b" class="">Roger A. Moss </font></div><div dir="auto" style="caret-color: rgb(0, 0, 0); color: rgb(0, 0, 0); letter-spacing: normal; text-transform: none; white-space: normal; word-spacing: 0px; text-decoration: none; -webkit-text-stroke-width: 0px; text-align: start; text-indent: 0px; word-wrap: break-word; -webkit-nbsp-mode: space; line-break: after-white-space;" class=""><font color="#5b5b5b" class="">Managing Director<br class=""><i class=""><b class="">Rincon Resolutions LLC</b></i><br class="">206.790.1971 Seattle</font></div><div dir="auto" style="caret-color: rgb(0, 0, 0); color: rgb(0, 0, 0); letter-spacing: normal; text-transform: none; white-space: normal; word-spacing: 0px; text-decoration: none; -webkit-text-stroke-width: 0px; text-align: start; text-indent: 0px; word-wrap: break-word; -webkit-nbsp-mode: space; line-break: after-white-space;" class=""><font color="#5b5b5b" class="">415.371.9724 San </font><span style="color: rgb(91, 91, 91);" class="">Francisco</span></div><div dir="auto" style="caret-color: rgb(0, 0, 0); color: rgb(0, 0, 0); letter-spacing: normal; text-transform: none; white-space: normal; word-spacing: 0px; text-decoration: none; -webkit-text-stroke-width: 0px; text-align: start; text-indent: 0px; word-wrap: break-word; -webkit-nbsp-mode: space; line-break: after-white-space;" class=""><font color="#9d703d" style="color: rgb(0, 0, 0);" class=""><a href="http://RinconResolutions.com" class="">RinconResolutions.com</a><br class=""></font><br class=""><font color="#0120a9" size="1" class=""><b class=""><font class="">Confidential Correspondence</font></b><br class=""><font class="">The information in this e-mail (including attachments, if any) is considered privileged and/or confidential and is intended only for the recipient(s) listed above. Any review, use, disclosure, distribution or copying of this e-mail is prohibited except by or on behalf of the intended recipient. If you have received this email in error, please notify me immediately by reply email, delete this email, and do not disclose its contents to anyone.<br class=""></font></font><br class=""></div></div></div></div></div></div></div></div></div></div>
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<div><br class=""><blockquote type="cite" class=""><div class="">On Apr 22, 2021, at 4:04 PM, Erik Marks <<a href="mailto:erik@egmrealestate.com" class="">erik@egmrealestate.com</a>> wrote:</div><br class="Apple-interchange-newline"><div class=""><meta charset="UTF-8" class=""><div class="WordSection1" style="page: WordSection1; caret-color: rgb(0, 0, 0); font-family: Verdana; font-size: 13px; font-style: normal; font-variant-caps: normal; font-weight: normal; letter-spacing: normal; text-align: start; text-indent: 0px; text-transform: none; white-space: normal; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration: none;"><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-size: 11pt;" class="">Has anyone heard of a Landlord claiming that Covid-related grants received by a restaurant tenant fall within the "Gross Revenue of all kinds derived from business operations on the Premises" definition used in a Percentage-Rent Lease? <span class="Apple-converted-space"> </span><o:p class=""></o:p></span></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-size: 11pt;" class=""><o:p class=""> </o:p></span></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-size: 11pt;" class=""><o:p class=""> </o:p></span></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-size: 10.5pt;" class="">--<span class="Apple-converted-space"> </span><o:p class=""></o:p></span></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><b class=""><i class=""><span style="font-size: 10.5pt; font-family: Arial, sans-serif; color: rgb(77, 87, 58);" class="">Erik G Marks</span></i></b><span style="font-size: 10.5pt; color: rgb(77, 87, 58);" class=""> </span><span style="font-family: "Times New Roman", serif; color: rgb(77, 87, 58);" class=""><o:p class=""></o:p></span></div><div class=""><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><b class=""><i class=""><span style="font-size: 10pt; font-family: Arial, sans-serif; color: rgb(77, 87, 58);" class="">Attorney at Law</span></i></b><span style="font-size: 10pt; font-family: Arial, sans-serif; color: rgb(77, 87, 58);" class=""><span class="Apple-converted-space"> </span></span><span style="font-size: 10pt; font-family: Arial, sans-serif;" class=""><br class="">PO Box 16247<o:p class=""></o:p></span></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-size: 10pt; font-family: Arial, sans-serif;" class="">Seattle, WA 98116<o:p class=""></o:p></span></div><p class="MsoNormal" style="margin: 0in 0in 12pt; font-size: 12pt; font-family: Calibri, sans-serif;"><span style="font-size: 10pt; font-family: Arial, sans-serif;" class=""> <br class="">(206) 612-8653<br class=""></span><u class=""><span style="font-size: 10pt; font-family: Arial, sans-serif; color: blue;" class=""><a href="mailto:erik@egmrealestate.com" style="color: rgb(149, 79, 114); text-decoration: underline;" class=""><span style="color: rgb(5, 99, 193);" class="">erik@egmrealestate.com</span></a><o:p class=""></o:p></span></u></p><p class="MsoNormal" style="margin: 0in 0in 12pt; font-size: 12pt; font-family: Calibri, sans-serif;"><span style="font-size: 10pt; font-family: Arial, sans-serif;" class="">Physical Office:<br class="">4220 SW Spokane St<br class="">Seattle, WA 98116<o:p class=""></o:p></span></p></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-size: 11pt;" class=""><o:p class=""> </o:p></span></div><div style="margin: 0in 0in 0.0001pt; font-size: 12pt; font-family: Calibri, sans-serif;" class=""><span style="font-size: 11pt;" class=""><o:p class=""> </o:p></span></div></div><span style="caret-color: rgb(0, 0, 0); font-family: Verdana; font-size: 13px; font-style: normal; font-variant-caps: normal; font-weight: normal; letter-spacing: normal; text-align: start; text-indent: 0px; text-transform: none; white-space: normal; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration: none; float: none; display: inline !important;" class="">***Disclaimer: Please note that RPPT listserv participation is not restricted to practicing attorneys and may include non-practicing attorneys, law students, professionals working in related fields, and others.***</span><br style="caret-color: rgb(0, 0, 0); font-family: Verdana; font-size: 13px; font-style: normal; font-variant-caps: normal; font-weight: normal; letter-spacing: normal; text-align: start; text-indent: 0px; text-transform: none; white-space: normal; word-spacing: 0px; -webkit-text-stroke-width: 0px; text-decoration: none;" class=""><br style="caret-color: rgb(0, 0, 0); font-family: Verdana; font-size: 13px; font-style: normal; font-variant-caps: normal; font-weight: normal; letter-spacing: normal; text-align: start; text-indent: 0px; 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