LIPPO-MAPLETREE - Lippo Malls Indonesia Retail Trust - Investor ...

Certain agreements relating to LMIR Trust and the PropertiesLease Agreement or opt to reinstate or replace the Retail Space using insurance proceeds received underthe insurance policies. If the Retail Space is partly unusable, the Master Lessee’s liability for the rent will bereduced in proportion to the reduction in the usability caused by the damage from the date of the damageor destruction.Increase in taxIf any change in or amendment to the relevant laws or treaties increases the taxes payable by the relevantlandlord, except for any increases in building tax, the increased tax shall be borne in the following manner:(i)(ii)if such increase is less than or equal to 10.0% of the original taxes payable by the landlord, then theamount of such increase shall be solely borne by the Master Lessee;if such increase is more than 10.0% but less than or equal to 15.0% of the original taxes payable bythe landlord, then:(a)(b)the Master Lessee shall bear such part of the amount of increase as is equivalent to 10.0% ofthe original taxes payable by the landlord; andthe landlord and Master Lessee shall bear the balance of the amount of increase in equalshares; and(iii)if such increase is more than 15.0% of the original taxes payable by the landlord, then:(a)(b)(c)the Master Lessee shall bear such part of the amount of increase as is equivalent to 10.0% ofthe original taxes payable by the landlord;additionally, the landlord and Master Lessee shall bear in equal shares such part of the amountof increase as is equivalent to 5.0% of the original taxes payable by the landlord; andthe balance of the amount of increase shall be solely borne by the landlord.Vacation of premisesThe Master Lessee is required to vacate the Retail Spaces after the expiry of the lease term. If the MasterLessee fails to vacate at the end of the expiry of the lease term, the landlord is entitled to charge the MasterLessee double the amount of the Rent for the period of holding over.On vacating the Retail Spaces, the Master Lessee must reinstate the premises to a good and tenantablecondition to the reasonable satisfaction of the relevant landlord.Change in laws affecting Master Lessee’s operationsIf as a result of any change in or amendment to the applicable laws or regulations, the Master Lessee isprohibited from carrying out its current operations at any of the Retail Spaces, the Master Lessee shall beentitled to terminate the lease with a three-month termination notice and upon such termination, thesecurity deposit will be forfeited to the landlord. The Master Lessee shall use its best endeavours toprocure a replacement tenant.DESCRIPTION OF THE OPERATING COSTS AGREEMENTSPursuant to each of the Operating Costs Agreements to be entered into between the relevant Retail MallIndonesian SPC and Operating Company, the relevant Operating Company will agree to unconditionallybear, for a period of three years commencing from 1 January 2007, all costs directly related to themaintenance and operation of the relevant Retail Mall.In consideration of its agreements under the relevant Operating Costs Agreement, the relevant OperatingCompany has the right to collect, through the Property Manager, a service charge and statutory incomefrom the tenants of the relevant Retail Mall. The service charge is intended to cover the costs directlyrelated to the maintenance and operation of the Retail Mall. The amount of the service charge will berecommended by the Property Manager as a result of its review of the prevailing market rates. Thestatutory income is intended to cover the costs directly related to the provision of utilities to the Retail Mall.231