================================================================================ WESTLAKE RETAIL PLAZA — COMMERCIAL LEASE & RENT ROLL AUDIT TEST PACK FOR TESTING OFFLINE / LOCAL COMMERCIAL REAL ESTATE DUE DILIGENCE WORKFLOWS ================================================================================ NOTICE: This is a fictional test corpus prepared for commercial real estate due diligence, lease abstraction, and AI grounding evaluations. All properties, tenant entities, square footage allocations, and financial figures are synthetic and do not depict real-world commercial contracts. ================================================================================ ================================================================================ RECORD 1: MASTER COMMERCIAL LEASE AGREEMENT (EXCERPT) LANDLORD: WESTLAKE RETAIL INVESTORS LP TENANT: APEX ENTERTAINMENT HOLDINGS LLC (ANCHOR CINEMA - SUITE 100) EXECUTION DATE: OCTOBER 12, 2019 | LEASE TERM: 15 YEARS ================================================================================ ARTICLE 4: OPERATING EXPENSES, TAXES, AND CAM RECONCILIATION Section 4.1. Definition of Common Area Maintenance (CAM) Tenant shall pay as Additional Rent its Proportionate Share (38.5%) of the actual and reasonable operating expenses directly incurred by Landlord in the routine operation, cleaning, lighting, security, landscaping, and maintenance of the Common Areas of Westlake Retail Plaza ("Operating Costs"). Section 4.2. Controllable Expense Cap Tenant’s Proportionate Share of Controllable Operating Expenses (defined as all Operating Costs excluding real estate taxes, municipal assessments, property insurance, and public utility charges) shall not increase by more than four percent (4.0%) per annum on a cumulative, compounded basis over the Base Year (2020) Controllable Operating Expenses ($312,400). Non-controllable expenses shall be passed through at actual cost without limitation. Section 4.3. Capital Expenditures and HVAC Exclusions Capital expenditures, structural repairs, foundation replacements, and roof membrane overhauls are strictly excluded from Operating Costs. Notwithstanding the foregoing, capital improvements incurred solely for energy conservation or mandated by federal statutes enacted after the Commencement Date may be amortized on a straight-line basis over their useful economic life in accordance with GAAP. Routine HVAC repairs exceeding $10,000 per unit shall not be passed through unless Landlord provides prior written notice and obtains Tenant's written concurrence thirty (30) days prior to expenditure. Section 4.4. Gross-Up Provision In the event the Shopping Center is less than ninety-five percent (95%) occupied during any calendar year, Landlord shall adjust (gross-up) variable operating costs to reflect ninety-five percent (95%) occupancy. In no event shall Landlord recover more than one hundred percent (100%) of actual operating costs across all tenants. ARTICLE 11: CO-TENANCY AND RENT ABATEMENT Section 11.1. Opening and Ongoing Co-Tenancy Requirement Tenant's obligation to operate and pay Minimum Guaranteed Rent is conditioned on the satisfaction of the Ongoing Co-Tenancy Condition: (a) The Key Anchor Tenant (defined as Northgate Supermarket in Suite 200, occupying not less than 45,000 square feet) must be open and continuously operating; and (b) Not less than seventy percent (70%) of the remaining gross leasable area (GLA) of the Shopping Center must be open and operating. Section 11.2. Co-Tenancy Remedies and Abatement Trigger If the Ongoing Co-Tenancy Condition fails for forty-five (45) consecutive days, Tenant shall be entitled to: (i) Cease payment of Minimum Guaranteed Rent and pay Substitute Rent equal to two percent (2.0%) of Gross Sales in lieu of all base rent and CAM charges, effective on the forty-sixth (46th) day following notice; and (ii) Terminate this Lease if the failure continues uncured for two hundred seventy (270) consecutive days. ARTICLE 16: ASSIGNMENT, SUBLETTING, AND RECAPTURE Section 16.1. Landlord Consent and Net Profits Tenant shall not assign or sublet the Leased Premises without Landlord's prior written consent, which shall not be unreasonably withheld, conditioned, or delayed. Landlord shall be entitled to fifty percent (50%) of any net profits realized from any sublease or assignment after deducting reasonable unamortized tenant improvement costs and customary leasing brokerage commissions. ================================================================================ RECORD 2: SATELLITE RETAIL LEASE AGREEMENT (EXCERPT) LANDLORD: WESTLAKE RETAIL INVESTORS LP TENANT: HARBOR COFFEE ROASTERS INC. (RETAIL SUITE 140) EXECUTION DATE: MAY 4, 2022 | LEASE TERM: 7 YEARS ================================================================================ ARTICLE 3: BASE RENT AND ADDITIONAL CHARGES Section 3.2. Common Area Charges and Controllable Cap Tenant shall pay its Proportionate Share (2.8%) of Shopping Center Operating Costs. Controllable Operating Expenses shall not increase by more than five percent (5.0%) per annum on a non-cumulative basis over the immediately preceding calendar year's actual controllable expenses. In any year where actual controllable expenses decline, the non-cumulative cap resets based upon the lower actual expenditure. Section 3.5. Gross-Up Standard Operating expenses that vary with occupancy shall be grossed up to an assumed occupancy level of eighty-five percent (85%) of total leasable area. ARTICLE 8: USE AND EXCLUSIVITY Section 8.2. Exclusive Coffee and Beverage Covenant Landlord covenants that no other tenant in Westlake Retail Plaza (excluding the Key Anchor Supermarket) shall be permitted to operate a specialty retail espresso bar, pour-over coffee kiosk, or derive more than fifteen percent (15%) of gross revenues from packaged whole-bean coffee sales. In the event Landlord breaches this covenant, Tenant shall be entitled to fifty percent (50%) Base Rent abatement until cure. ================================================================================ RECORD 3: ACQUISITION AUDIT MEMORANDUM & RENT ROLL RECONCILIATION PREPARED FOR: HORIZON CAPITAL REAL ESTATE FUND IV SUBJECT: WESTLAKE RETAIL PLAZA DUE DILIGENCE AUDIT REPORT (CONFIDENTIAL) DATE: AUGUST 14, 2026 ================================================================================ EXECUTIVE SUMMARY OF ACQUISITION DUE DILIGENCE FINDINGS 1. CAM Reconciliation Discrepancy & Uncapped Pass-Throughs Our audit of the 2024 and 2025 CAM reconciliation statements disclosed that the seller (Westlake Retail Investors LP) billed Apex Entertainment (Suite 100) $48,200 for a rooftop chiller compressor replacement. Under Section 4.3 of the Anchor Lease, capital HVAC repairs exceeding $10,000 require 30-day prior written concurrence, which was never requested or granted. Apex Entertainment has formally disputed this charge and threatened a $62,400 CAM escrow withholding. 2. Cumulative vs. Non-Cumulative Controllable Cap Mismatch The seller’s asset management model incorrectly applied a uniform 5% non-cumulative controllable cap across all leases. However, Apex Entertainment's lease specifies a 4.0% cumulative, compounded cap linked to the 2020 Base Year ($312,400). Due to rapid inflation in local security and cleaning contracts in 2023, the cumulative cap understates recoverable CAM by $37,800 over the past 24 months. 3. Co-Tenancy Abatement Risk Northgate Supermarket (Anchor Suite 200, 48,000 sq ft) has ceased 24-hour operations and dark-store sublease discussions are under review. If Northgate darkens for more than 45 days, Apex Entertainment's co-tenancy clause (Section 11.2) triggers a right to cease paying $42,500/month in base rent and switch to 2% gross sales (estimated at only $14,200/month), creating a 66% net income impairment on Suite 100. 4. Exclusive Use Conflict A proposed lease with Artisan Bakery & Roastery (Suite 130) granting a 25% specialty tea and cold-brew coffee menu line violates Section 8.2 of the Harbor Coffee Roasters lease, exposing the buyer to an automatic 50% base rent abatement ($3,800/month) upon opening.