Kennards Self Storage Asset Management Overview

Fees and Expenses

Management Fee • 7% Gross Storage Income (Storage Rent, Insurance, Merchandise Sales and other incidental income. • Minimum Monthly fee of $2,000 per month (plus GST).

• Fee Payable Monthly.

Incentive Fee As an additional performance incentive and to align our interest with the owner maximising the return, an Add Value Incentive Fee of 4% of EBITA is payable. Establishment Fee The Establishment Fee is $50,000 (plus GST) payable in three instalments 1. $20,000, payable on execution of Management Agreement 2. $20,000,on occupation of property 3. $10,000, 30 days after occupation of the property Operating Expenses The property owner will pay all of the operating costs directly incurred by the business and property. Where expenses are shared (i.e, advertising) in a market area, the cost is allocated on a pro rata basis to the centres in that market. Pro rata allocation is based on maximum lettable area. Development Management Fee Where applicable, Kennard Storage Management (KSM) is engaged to manage the entire development project. A fee of 5% (plus GST) of the construction cost is payable.