Exhibit 10.1

 

MONTBLEU LEASE AMENDMENT NO. 3

 

THIS MONTBLEU LEASE AMENDMENT NO. 3 is made effective this 10th day of May, 2010
(the “Effective Date”), by and between the Edgewood Companies, a Nevada
corporation formerly known as Park Cattle Co., (“Park”), as Landlord, and
Columbia Properties Tahoe, LLC, a Nevada limited liability company (“CPT”).
Park, as Landlord, and CPT, as Tenant, are sometimes referred to individually as
a “Party” and collectively as the “Parties.” Terms not otherwise defined herein
shall have the meanings ascribed to them in the Original Lease (defined below).

 

WITNESSETH

 

WHEREAS, Park, as Landlord, and Desert Palace, Inc., as Tenant entered into that
certain Amended and Restated Net Lease Agreement dated January 1, 2000 (the
“Original Lease”), involving the Douglas County, Nevada real property described
in the Original Lease.

 

WHEREAS, Desert Palace, Inc. assigned all of its right, title, benefits,
privileges, estate and interest in, to and under the Original Lease to CPT
pursuant to an Assignment and Assumption of Lease dated June 10, 2005.

 

WHEREAS, Park and CPT entered into that certain MontBleu Lease Amendment
effective April 2, 2008 (such amendment, before giving effect to this Amended
and Restated amendment, the “Original Amendment”).

 

WHEREAS, Park and CPT entered into that certain MontBleu Lease Amendment No. 2
(the “Amended and Restated Amendment”) effective June 12, 2009.

 

WHEREAS, Park and CPT have agreed to make certain modifications to the Amended
and Restated Amendment.

 

NOW, THEREFORE, in consideration of the mutual promises contained herein and
other good and valuable consideration, the receipt and adequacy of which is
hereby acknowledged, effective on the Effective Date, the Parties hereto agree
to amend the Amended and Restated Amendment as follows:

 

I.              The Parties agree that the terms and conditions set forth in the
Original Lease, as amended by the Amended and Restated Amendment and this
MontBleu Lease Amendment No. 3 (collectively, the “Lease”) are all of the terms
and conditions for the lease of the Premises by Landlord to Tenant.

 

II.            Section 2.10 of the Amended and Restated Amendment is hereby
amended and restated in its entirety to read as follows:

 

Section 2.10 Effective for the lease year 2009 and for every lease year
thereafter, for purposes of this Lease, the term “Gross Revenues”

 

1

--------------------------------------------------------------------------------

 

means all amounts received whether by cash or credit, from the operation of all
of the facilities and businesses on the Premises and the Enterprise now known as
MontBleu and as currently reflected on the “CP Tahoe, LP - MontBleu Income
Statement” (the “Income Statement”) under the heading “Total Gross Revenue.” The
line items listed and amounts included in Total Gross Revenue on the Income
Statement constitute all revenues generated in 2009 from the operation of all of
the facilities and businesses on the Premises of MontBleu. The amounts include,
but are not limited to, revenues generated from the operation of hotel rooms,
bars, restaurants, concessions, gaming, and other revenues and shall be measured
by Lease Year. Any future revenue sources or new revenues generated from the
operation of the facilities and the businesses on the Premises shall in future
lease years be consistently reflected on the Income Statement as a line item and
included in Total Gross Revenue. A true, complete and accurate copy of the
Income Statement for the 2009 lease year, reflecting Total Gross Revenue in the
amount of $48,194,664, is attached hereto as Exhibit A.

 

(a)                   Total Gross Revenue as reported on the Income Statement
includes exclusions for “Contra Slot Revenues.” Contra Slot Revenues are allowed
exclusions from Gross Revenue and consist of (i) “Contra—Participation,” which
consists of amounts paid by MontBleu to (x) operators of statewide slot machine
progressive systems, and that represent MontBleu’s portion of the progressive
award, and (y) manufacturers or distributors of slot machines with which
MontBleu has entered into revenue sharing agreements and only in cases where
MontBleu is not able to purchase the slot machines outright on commercially
reasonable terms; (ii) “Contra—Progressive,” which represents the jackpot
amounts that MontBleu must reserve on its balance sheet for future, potential
slot machine progressive jackpot payouts; and (iii) “Contra—Free Play,” which
represents promotional, electronic credits that are given to customers. The
amounts for these three Contra Slot Revenues for the 2009 Lease Year are
$1,493,874, $16,287, and $2,524,456, respectively, as shown on Exhibit A.

 

(b)                  Gross Revenues shall also expressly exclude: (i) proceeds
from the sale, exchange or voluntary or involuntary disposition of Owner’s
property which had not been held for sale, (ii) such amounts as may be received
and held by Owner as security or in other special deposits, (iii) applicable
excise, sales, occupancy and use taxes, or similar government taxes, duties,
levies or charges collected directly from patrons or guests, or as a part of the
sales price of any goods, services, or displays, including gross receipts,
admission, cabaret, or similar or

 

2

--------------------------------------------------------------------------------

 

equivalent taxes; (iv) receipts from awards or sales in connection with any
condemnation, from other transfers in lieu of and under the threat of any
condemnation; (v) proceeds of any insurance, including the proceeds of any
business interruption and/or contingent business interruption insurance;
(vi) discounts (including rebates, credits or charge or credit card
commissions); (vii) gratuities and service charges collected for payment to
employees; (viii) any credits or refunds made to customers, guests or patrons;
(ix) interest income, and (x) any reserve for and/or uncollectible debts as
determined in accordance with generally accepted accounting principles
consistently applied.

 

For illustration purposes, attached hereto as Exhibit B is the format of the
statement required under Section 2.6 of Gross Revenues for the lease year 2009,
together with an accounting of the percentage rent to which the Landlord is
entitled to for the lease year 2009.

 

Ill.            Except as expressly modified herein, the Original Lease and
Amended and Restated Amendment shall remain in full force and effect and the
Parties shall be bound by all of the terms and conditions thereof and hereof.

 

IV.           This MontBleu Lease Amendment No. 3 may be entered into in more
than one counterpart, each of which shall be deemed an original when executed,
and which together shall constitute but one and the same MontBleu Lease
Amendment No. 3. Each Party may rely on facsimile and PDF signature pages as if
such facsimile and PDF pages were originals.

 

Landlord and Tenant have duly executed this MontBleu Lease Amendment No. 3 as of
the Effective Date.

 

LANDLORD:

 

TENANT:

 

 

 

Edgewood Companies, a Nevada corporation

 

Columbia Properties Tahoe, LLC, a

 

 

Nevada limited liability company

 

 

 

 

 

 

By:

/s/ Steve Johnson

 

By

/s/ Lance J Millage

Name:

Steve Johnson

 

Name:

Lance J Millage

Its:

Chairman

 

Its:

SVP Finance and Treasurer

 

3

--------------------------------------------------------------------------------

 

EXHIBIT A

 

COPY OF MONTBLEU COMPANY LEVEL INTERNALLY
PREPARED PROFIT AND LOSS STATEMENT FOR THE
2009 LEASE YEAR

 

See attached

 

4

--------------------------------------------------------------------------------

 

 

085 CP Tahoe, LP - Montbleu

Unaudited

 

Income Statement

 

 

As of Thursday, December 31, 2009

 

 

Month-To-Date

 

 

 

Year-To-Date

 

December-2009

 

% of Rev

 

December-2008

 

% of Rev

 

2009/2008
Variance

 

Var %

 

 

 

December-2009

 

% of Rev

 

December-2008

 

% of Rev

 

2009/2008
Variance

 

Var %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Gross Operating Revenue

 

 

 

 

 

 

 

 

 

 

 

 

 

599,363

 

18.8

 

595,961

 

13.7

 

103,401

 

17.4

 

Win-$.01

 

10,772,222

 

22.4

 

9,179,911

 

16.2

 

1,592,311

 

17.3

 

162,204

 

4.4

 

234,244

 

5.4

 

(72,040

)

(30.8

)

Win-$.05

 

3,008,918

 

6.2

 

3,498,804

 

6.2

 

(489,886

)

(14.0

)

196,097

 

5.3

 

209,271

 

4.8

 

(13,174

)

(6.3

)

Win-$.25

 

2,723,395

 

5.7

 

3,190,902

 

5.6

 

(467,507

)

(14.7

)

—

 

—

 

12,251

 

0.3

 

(12,251

)

(100.0

)

Win-$.50

 

20,292

 

0.0

 

206,627

 

0.4

 

(186,335

)

(90.2

)

169,126

 

4.5

 

233,440

 

5.4

 

(64,313

)

(27.6

)

Win-$1

 

2,067,237

 

4.3

 

1,949,507

 

3.4

 

117,730

 

6.0

 

62,894

 

1.7

 

67,799

 

1.6

 

(4,905

)

(7.2

)

Win-$5

 

563,073

 

1.2

 

660,884

 

1.2

 

(97,811

)

14.8

 

325

 

0.0

 

5,025

 

0.1

 

(5,700

)

(94.6

)

Win-$25

 

(1,428

)

0.0

 

283,572

 

0.5

 

(285,000

)

(100.5

)

—

 

—

 

2,900

 

0.1

 

(2,900

)

(100.0

)

Win-$100

 

36,000

 

0.1

 

17,100

 

0.0

 

18,900

 

110.5

 

116,271

 

3.1

 

179,459

 

4.1

 

(63,18?

)

(35.2

)

Free Play Revenue

 

2,524,456

 

5.2

 

3,351,265

 

5.9

 

(826,809

)

(24.7

)

—

 

—

 

—

 

—

 

—

 

—

 

Slot Revenue-Other

 

—

 

—

 

62,250

 

0.1

 

(62,150

)

(100.0

)

1,406,280

 

37.8

 

1,541,350

 

35.5

 

(135,070

)

(8.8

)

Gross Slot Revenue

 

21,714,165

 

45.1

 

22,400,822

 

39.4

 

[ILLEGIBLE]

 

(3.1

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(96,415

)

(2.6

)

(105,592

)

(2.4

)

9,177

 

8.7

 

Contra-Participation

 

(1,493,874

)

(3.1

)

(1,579,736

)

(2.8

)

85,862

 

5.4

 

(228

)

0.0

 

1,356

 

0.0

 

(1,585

)

(116.8

)

Contra-Progressive

 

(16,287

)

0.0

 

(18,600

)

0.0

 

2,312

 

12.4

 

(116,271

)

(3.1

)

(179,459

)

(4.1

)

63,188

 

35.2

 

Contra-Free Play

 

(2,524,455

)

(5.2

)

(3,351,265

)

(5.9

)

826,809

 

24.7

 

(212,914

)

(5.7

)

(283,695

)

(6.5

)

70,750

 

24.9

 

Contra Slot Revenue

 

(4,0?4,617

)

(8.4

)

(4,9?9,601

)

(8.7

)

914,983

 

18.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,193,366

 

32.1

 

1,257,656

 

29.0

 

(64,290

)

(5.1

)

Slot Revenue

 

17,679,548

 

36.7

 

[ILLEGIBLE]

 

30.7

 

228,326

 

1.?

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

231,824

 

6.2

 

229,928

 

5.3

 

1,896

 

0.8

 

Win-Blackjack

 

3,040,076

 

6.3

 

3,809,907

 

6.7

 

(769,831

)

(20.2

)

50,557

 

1.4

 

50,325

 

1.2

 

232

 

0.5

 

Win-Craps

 

1,187,364

 

2.5

 

1,525,78?

 

2.7

 

(338,424

)

(22.2

)

55,232

 

1.5

 

51,633

 

1.2

 

3,599

 

7.0

 

Win-Roulette

 

861,332

 

1.8

 

957,210

 

1.7

 

(95,878

)

(10.0

)

8,376

 

0.2

 

5,964

 

0.1

 

2,412

 

40.4

 

Win-Let it Ride

 

96,025

 

0.2

 

153,559

 

0.3

 

(57,534

)

(37.5

)

—

 

—

 

6,383

 

0.1

 

(6,383

)

(100.0

)

win-Mini Baccarat

 

22,347

 

0.0

 

194,412

 

0.3

 

(172,066

)

(88.5

)

28,424

 

0.8

 

31,671

 

0.7

 

(3,247

)

(10.3

)

Win-3 Card Poker

 

351,573

 

0.7

 

425,532

 

0.7

 

(73,959

)

(17.4

)

20,355

 

0.5

 

19,249

 

0.4

 

1,106

 

5.7

 

Win-Paigow Poker

 

202,183

 

0.4

 

234,865

 

0.4

 

(32,682

)

(13.9

)

16,906

 

0.5

 

12,213

 

0.3

 

4,693

 

38.4

 

Win-Other Table Games

 

149,588

 

0.3

 

210,010

 

0.4

 

(60,422

)

(28.8

)

5,125

 

0.1

 

2,490

 

0.1

 

2,635

 

105.8

 

Contra-Promotional

 

60,600

 

0.1

 

5,310

 

0.0

 

55,290

 

1,041.2

 

—

 

—

 

—

 

—

 

—

 

—

 

Table Revenue-Other

 

2,950

 

0.0

 

—

 

—

 

2,950

 

—

 

416,799

 

11.2

 

409,?56

 

9.4

 

6,943

 

1.7

 

Table Games Revenue

 

5,974,038

 

12.4

 

7,516,593

 

13.2

 

(1,542,555

)

(20.5

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

17,964

 

0.5

 

23,272

 

0.5

 

(5,308

)

(22.8

)

Win-Poker

 

246,228

 

0.5

 

356,098

 

0.6

 

(109,870

)

(30.9

)

4,802

 

0.1

 

2,482

 

0.1

 

2,320

 

93.5

 

Win-Tournament

 

88,641

 

0.2

 

109,169

 

0.2

 

(20,528

)

(18.8

)

—

 

—

 

—

 

—

 

—

 

—

 

Poker Revenue-Other

 

1,392

 

0.0

 

—

 

—

 

1,392

 

—

 

22,766

 

0.6

 

25,754

 

0.6

 

[ILLEGIBLE]

 

(11.6

)

Poker Revenue

 

336,261

 

0.7

 

465,267

 

0.8

 

(129,005

)

(27.7

)

1,632,931

 

43.9

%

1,693,266

 

39.0

%

(60,3?3

)

(3.6

)%

Gaming Revenue

 

23,989,846

 

49.8

%

25,433,0?0

 

44.8

%

(1,443,234

)

(5.7

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

746,784

 

20.1

 

958,360

 

22.1

 

(211,576

)

(22.1

)

Room Revenue-Cash

 

8,141,106

 

16.9

 

11,564,187

 

20.4

 

(3,423,081

)

(29.6

)

120,523

 

3.2

 

116,083

 

2.7

 

4,540

 

3.9

 

Hotel Revenue-Comp

 

2,074,213

 

4.3

 

2,011,549

 

3.5

 

62,664

 

3.1

 

40,251

 

1.1

 

79,166

 

1.8

 

(38,914

)

(49.2

)

Other Hotel Revenue

 

641,960

 

1.3

 

1,138,070

 

2.0

 

(496,110

)

(43.6

)

907,658

 

24.4

%

1,153,609

 

26.6

%

(245,951

)

(21.?

)%

Hotel Revenue

 

10,857,279

 

22.5

%

14,713,806

 

25.9

%

(3,856,527

)

(26.2

)%

 

1

--------------------------------------------------------------------------------

 

 

 

085 CP Tahoe, LP - Montbleu

 

Unaudited

 

 

Income Statement

 

 

 

 

As of Thursday, December 31, 2009

 

 

 

Month-To-Date

 

 

 

Year-To-Date

 

December-2009

 

% of Rev

 

December-2008

 

% of Rev

 

2009/2008
Variance

 

Var %

 

 

 

December-2009

 

% of Rev

 

December-2008

 

% of Rev

 

2009/2008
Variance

 

Var %

 

364,314

 

9.8

 

464,693

 

10.7

 

(100,379

)

(21.6

)

Food Rev-Cash

 

4,357,992

 

9.0

 

5,990,008

 

10.5

 

(1,632,016

)

(27.2

)

—

 

—

 

—

 

—

 

—

 

—

 

Food Rev-Allowance

 

(150

)

0.0

 

—

 

—

 

(150

)

—

 

104,776

 

2.8

 

107,563

 

2.5

 

(2,787

)

(2.6

)

Food Rev-Comp

 

1,461,705

 

3.0

 

1,610,044

 

2.8

 

(148,339

)

(9.2

)

469,090

 

12.6

 

572,256

 

13.2

 

(103,166

)

(18.0

)

Food Revenue

 

5,?19,547

 

12.1

 

7,600,052

 

13.4

 

(1,780,505

)

(23.4

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

319,123

 

8.6

 

372,605

 

8.6

 

(53,482

)

(14.4

)

Beverage Rev-Cash

 

3,292,747

 

6.8

 

3,606,066

 

6.4

 

(313.319

)

(8.7

)

93,554

 

2.5

 

150,403

 

3.5

 

(56,849

)

(37.8

)

Beverage Rev-Comp

 

1,503,537

 

3.?

 

1,782,565

 

3.1

 

(279,028

)

(15.7

)

412,677

 

11.1

 

523,00?

 

12.1

 

(110,331

)

(21.1

)

Beverage Revenue

 

4,796,284

 

10.0

 

5,388,631

 

9.5

 

(592,347

)

(11.0

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,500

 

0.0

 

2,700

 

0.1

 

(1,200

)

(44.4

)

Public Room Rental

 

71,851

 

0.1

 

128,499

 

0.2

 

(56,649

)

(44.1

)

2,306

 

0.1

 

3,409

 

0.1

 

(1,103

)

(32.3

)

Service Charges

 

24,601

 

0.1

 

46,876

 

0.1

 

(22,275

)

(47.5

)

155,685

 

4.2

 

126,205

 

2.9

 

29,480

 

23.4

 

Admission

 

570,231

 

1.2

 

390,200

 

0.7

 

180,031

 

46.1

 

11,865

 

0.3

 

37,758

 

0.9

 

(25,893

)

(68.6

)

F&B Rev-Other

 

137,?56

 

0.3

 

[ILLEGIBLE]

 

0.6

 

(204,439

)

(59.8

)

171,356

 

4.6

 

170,072

 

3.9

 

1,284

 

0.?

 

Other F&B Revenue

 

503,939

 

1.7

 

907,270

 

1.6

 

(103,331

)

(11.4

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,053,123

 

28.3

%

[ILLEGIBLE]

 

29.2

%

(21?,213

)

(16.?

)%

Food and Beverage Revenue

 

11,419,770

 

23.7

%

13,895,953

 

24.5

%

(2,476,183

)

(17.8

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

38,407

 

1.0

 

62,136

 

1.4

 

(23,729

)

(38.2

)

Retail Rev-Cash

 

592,111

 

1.2

 

728,232

 

1.3

 

(136,122

)

(18.7

)

24,103

 

0.6

 

27,920

 

0.6

 

(3,817

)

(13.7

)

Retail Revenue-Comp

 

363,054

 

0.8

 

293,596

 

0.5

 

69,458

 

23.7

 

5,000

 

[ILLEGIBLE]

 

5,769

 

0.1

 

(769

)

(13.3

)

Retail Rev-Rental

 

[ILLEGIBLE]

 

0.1

 

72,243

 

0.1

 

(3,575

)

(4.9

)

67,510

 

1.8

%

95,824

 

2.2

%

(28,315

)

(29.5

)%

Retail Revenue

 

1,023,832

 

2.1

%

1,094,071

 

1.9

%

(70,238

)

(6.4

)%

10,532

 

0.3

 

81,521

 

1.9

 

(70,9?

)

(87.1

)

Entertainment Revenue-Cash

 

153,290

 

0.3

 

870,155

 

1.5

 

(716,8?6

)

(82.4

)

—

 

—

 

4,248

 

0.1

 

(4,24?

)

(100.0

)

Entertainment Rev- Camp

 

35,555

 

0.1

 

12,822

 

0.0

 

22,733

 

177.3

 

10,532

 

0.3

%

85,76?

 

2.0

%

(75,236

)

(87.7

)%

Entertainment Revenue

 

188,845

 

0.4

%

882,977

 

1.6

%

(694,133

)

(78.6

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

7,218

 

0.2

 

—

 

—

 

7,218

 

—

 

Wedding Chapel Rev

 

27,298

 

0.1

 

—

 

—

 

27,298

 

—

 

7,218

 

0.2

 

—

 

—

 

7,218

 

—

 

Other Operating Rev-Cash

 

27,298

 

0.1

 

—

 

—

 

27,298

 

—

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

7,741

 

0.2

 

8,429

 

0.2

 

(6?8

)

(8.2

)

Vending

 

109,725

 

0.2

 

119,999

 

0.2

 

(10,274

)

[ILLEGIBLE]

 

18,422

 

0.5

 

17,449

 

0.4

 

973

 

5.6

 

Commission

 

311,118

 

0.6

 

354,007

 

0.6

 

(42,889

)

(12.1

)

—

 

—

 

—

 

—

 

—

 

—

 

Cash Discounts

 

379

 

0.0

 

—

 

—

 

379

 

—

 

11,683

 

0.3

 

18,833

 

0.4

 

(7,150

)

(38.0

)

Rental

 

256,283

 

0.5

 

214,806

 

0.4

 

41,478

)

19.3

 

76

 

0.0

 

94

 

0.0

 

(18

)

(18.9

)

Currency Exchange

 

1,858

 

0.0

 

2,76?

 

0.0

 

(907

)

(32.8

)

1,985

 

0.1

 

515

 

0.0

 

1,470

 

285.6

 

Other

 

8,430

 

0.0

 

74,141

 

0.1

 

(65,712

)

[ILLEGIBLE]

 

39,907

 

1.1

 

45,319

 

1.0

 

(5,413

)

(11.9

)

Miscellaneous Income

 

6?7,793

 

1.4

 

765,71?

 

1.3

 

(77,?25

)

(10.2

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

47,125

 

1.3

%

45,3?9

 

1.0

%

1,?05

 

4.0

%

Other Operating Revenue

 

715,09?

 

1.5

%

765,718

 

1.3

 

(50,627

)

(6.6

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3,71?,879

 

100.0

%

4,339,123

 

100.0

%

(620,243

)

(14.3

)%

Total Gross Revenue

 

[ILLEGIBLE]

 

100.0

%

56,7?5,606

 

100.0

%

(8,590,942

)

(15.1

)%

119,027

 

3.2

 

97,640

 

2.3

 

21,3?6

 

21.9

 

Comp Expense-Room

 

1,993,497

 

4.1

 

1,773,647

 

3.1

 

219,?50

 

12.4

 

105,004

 

2.?

 

105,788

 

2.4

 

(784

)

(0.7

)

Comp Expense-Food

 

1,417,596

 

2.9

 

1,61?,089

 

2.8

 

(197,493

)

(12.2

)

93,414

 

2.5

 

150,403

 

3.5

 

(56,989

)

(37.9

)

Comp Expense-Beverage

 

1,509,976

 

3.1

 

1,762,998

 

3.1

 

(253,022

)

(14.4

)

23,667

 

0.6

 

27,845

 

0.6

 

(4,17?

)

(15.0

)

Comp Expense-[ILLEGIBLE]

 

361,342

 

0.7

 

290,61?

 

0.5

 

70,724

 

24.3

 

18,096

 

0.5

 

22,781

 

0.5

 

(4,6?5

)

(20.6

)

Comp Expense-Other

 

170,572

 

0.4

 

437,76?

 

0.8

 

(267,194

)

(61.0

)

 

2

--------------------------------------------------------------------------------

 

 

085 CP Tahoe, LP - Montbleu

Unaudited

 

Income Statement

 

 

As of Thursday, December 31, 2009

 

 

Month-To-Date

 

 

 

Year-To-Date

 

December-2009

 

% of Rev

 

December-2008

 

% of Rev

 

2009/2008
Variance

 

Var %

 

 

 

December-2009

 

% of Rev

 

December-2008

 

% of Rev

 

2009/2008
Variance

 

Var %

 

359,20?

 

9.7

 

404,457

 

9.3

 

(45,249

)

(11.2

)

Complimentary Expense

 

5,452,982

 

11.3

 

5,880,118

 

10.4

 

(427,135

)

(7.3

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

46,109

 

1.2

 

105,839

 

2.4

 

(59,730

)

(56.4

)

Promotional-Redmptn Cash

 

574,240

 

1.2

 

641,230

 

1.1

 

(66,990

)

(10.4

)

(3,952

)

(0.1

)

36,921

 

0.9

 

(40,873

)

(110.7

)

Promotional-Redmptn Accrual

 

(76,617

)

(0.2

)

(29,277

)

(0.1

)

(47,340

)

(161.7

)

—

 

—

 

—

 

—

 

—

 

—

 

Promotional-Cash Incentive

 

—

 

—

 

231,160

 

0.4

 

(231,160

)

(100.0

)

—

 

—

 

—

 

—

 

—

 

—

 

Promotional-Bus

 

—

 

—

 

(370

)

0.0

 

370

 

100.0

 

42,157

 

1.1

 

142,760

 

3.3

 

(100,603

)

(70.5

)

Promotional Allowances

 

497,623

 

1.0

 

342,743

 

1.5

 

(345,120

)

(41.0

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(401,?65

)

(10.8

)%

(547,217

)

(12.6

)%

145,852

 

26.7

%

Less Promotional Allowances

 

(5,950,605

)

(12.3

)%

(6,722,860

)

(11.8

)%

772,255

 

11.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

3,317,514

 

89.2

%

3,791,905

 

87.4

%

(474,391

)

(12.5

)%

Total Net Revenue

 

42,244,058

 

87.7

%

50,062,745

 

88.2

%

(7,818,687

)

(15.6

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

147,256

 

4.0

 

240,450

 

5.5

 

(93,195

)

(38.8

)

Cost Of Sales-Food

 

2,084,620

 

4.3

 

2,850,808

 

5.0

 

(766,188

)

(26.9

)

138,916

 

3.7

 

180,795

 

4.2

 

(41,880

)

(23.2

)

Cost Of Sales-Beverage

 

1,275,807

 

2.6

 

1,458,390

 

2.6

 

(182,532

)

(12.5

)

42,873

 

1.2

 

89,930

 

2.1

 

(47,058

)

(52.3

)

Cost Of Sales-Retail

 

586,546

 

1.2

 

602,196

 

1.1

 

(15,650

)

(2.6

)

6,038

 

0.2

 

8,753

 

0.2

 

(2,715

)

(31.0

)

Cost Of Sales-Telephone

 

85,726

 

0.2

 

78,912

 

0.1

 

6,814

 

8.6

 

1,693

 

0.0

 

13,736

 

0.3

 

(12,043

)

(87.7

)

Cost Of Sales-Other

 

41,627

 

0.1

 

63,220

 

0.1

 

(21,592

)

(34.2

)

336,775

 

9.1

%

533,665

 

12.3

%

(196,890

)

(36.9

)%

Cost Of Sales

 

[ILLEGIBLE]

 

8.5

%

5,053,526

 

8.9

%

(979,199

)

(19.4

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

2,980,739

 

80.2

%

3,258,240

 

75.1

%

(277,501

)

(8.5

)%

Gross Profit

 

38,169,731

 

79.2

%

45,009,219

 

79.3

%

(6,839,4?8

)

(15.2

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

234,373

 

6.3

 

772,274

 

17.8

 

(537,?02

)

(69.7

)

Payroll Expense-Salaries

 

3,568,317

 

7.4

 

9,504,336

 

16.7

 

(5,936,020

)

(62.5

)

712,412

 

19.2

 

379,908

 

8.8

 

332,503

 

87.5

 

Payroll Expense-Wages

 

?,917,241

 

18.5

 

4,374,866

 

7.7

 

4,542,376

 

[ILLEGIBLE]

 

11,126

 

0.3

 

—

 

—

 

11,126

 

—

 

Payroll Expense-Overtime

 

235,785

 

0.5

 

—

 

—

 

235,785

 

—

 

35,158

 

0.9

 

46,798

 

11

 

(11,640

)

(24.9

)

Payroll Expense-Holiday

 

362,671

 

0.8

 

345,917

 

0.6

 

16,754

 

4.8

 

6,565

 

0.2

 

6,824

 

0.2

 

(259

)

(3.8

)

Payroll Expense-Incentive

 

96,899

 

0.2

 

134,745

 

0.2

 

[ILLEGIBLE]

 

(28.1

)

—

 

—

 

—

 

—

 

—

 

—

 

Payroll Expense-Jury Duty

 

420

 

0.0

 

625

 

0.0

 

(205

)

(32.7

)

15,270

 

0.4

 

28,711

 

0.7

 

(13,441

)

(46.8

)

Payroll Expense-Severance

 

130,809

 

0.3

 

30,288

 

0.1

 

100,521

 

331.9

 

1,014,902

 

27.3

 

1,234,515

 

28.5

 

(219,613

)

(17.8

)

Payroll Expense

 

13,312,143

 

27.6

 

14,390,777

 

25.3

 

(1,078,634

)

(7.5

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

409,628

 

11.0

 

101,583

 

2.3

 

308,045

 

308.2

 

Benefit Expense

 

3,962,468

 

[ILLEGIBLE]

 

2,210,490

 

3.9

 

1,751,978

 

79.3

 

100,888

 

2.7

 

167,273

 

3.9

 

(66,390

)

(39.7

)

Payroll Taxes

 

1,756,224

 

[ILLEGIBLE]

 

1,918,879

 

3.4

 

(162,655

)

[ILLEGIBLE]

 

510,516

 

13.7

 

268,8?1

 

6.2

 

241,655

 

89.9

 

Payroll Benefits & Taxes

 

5,71?,692

 

11.9

 

4,129,369

 

7.3

 

1,589,323

 

38.5

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

1,525,418

 

41.0

%

1,503,376

 

34.6

%

22,042

 

1.5

%

Payroll and Related

 

19,030,835

 

39.5

%

18,520,146

 

32.6

%

510,689

 

2.8

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

140,060

 

3.8

 

163,979

 

3.8

 

(23,918

)

(14.6

)

Taxes and Licenses

 

1,690,003

 

3.5

 

1,758,527

 

3.1

 

(68,524

)

(3.9

)

116,423

 

3.1

 

113,347

 

2.6

 

3,076

 

2.7

 

Gaming Taxes

 

1,654,420

 

3.4

 

1,762,408

 

3.1

 

(107,988

)

(6.1

)

256,483

 

6.9

 

277,326

 

6.4

 

(20,842

)

(7.5

)

Taxes and Licenses

 

3,344,423

 

6.9

 

3,520,935

 

6.2

 

(176,512

)

(5.0

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

108,082

 

2.9

 

115,010

 

2.7

 

(5,928

)

(6.0

)

Supplies-General

 

1,146,073

 

2.4

 

1,195,152

 

2.1

 

(49,079

)

(4.1

)

14,261

 

0.4

 

5,176

 

0.1

 

9,084

 

175.5

 

Supplies-Gaming

 

89,735

 

0.2

 

96,432

 

0.2

 

(6,697

)

(6.9

)

21,942

 

0.6

 

22,929

 

0.5

 

(985

)

(4.3

)

Supplies-Food and Beverage

 

310,853

 

0.6

 

407,703

 

0.7

 

(96,850

)

(23.8

)

144,285

 

3.9

 

143,115

 

3.3

 

1,170

 

0.8

 

Supplies

 

1,546,662

 

3.2

 

1,699,287

 

0.3

 

(152,625

)

(9.0

)

 

3

--------------------------------------------------------------------------------

 

 

 

085 CP Tahoe, LP - Montbleu
Income Statement
As of Thursday, December 31, 2009

Unaudited

 

Month-To-Date

 

 

 

Year-To-Date

 

December-2009

 

% of Rev

 

December-2008

 

% of Rev

 

2009/2008
Variance

 

Var %

 

 

 

December-2009

 

% of Rev

 

December-2008

 

% of Rev

 

2009/2008
Variance

 

Var %

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

113,335

 

3.0

 

253,954

 

5.9

 

(140,619

)

(55.4

)

Repairs and Maintenance

 

647,798

 

1.3

 

917,091

 

1.6

 

(269,293

)

(29.4

)

15,357

 

0.4

 

35,236

 

0.8

 

(19,880

)

(56.4

)

Maintenance Contracts

 

196,896

 

0.4

 

193,845

 

0.3

 

3,051

 

1.6

 

128,692

 

3.5

 

289,191

 

6.7

 

(160,499

)

(55.5

)

Repairs and Maintenance

 

844,694

 

1.8

 

1,110,936

 

2.0

 

(266,242

)

(24.0

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

68,630

 

1.8

 

47,050

 

1.1

 

21,580

 

45.9

 

Equipment Rental

 

624,494

 

1.3

 

441,267

 

0.8

 

183,227

 

41.5

 

336,983

 

9.1

 

495,495

 

11.4

 

(158,511

)

(32.0

)

Rent

 

4,652,295

 

9.7

 

5,945,961

 

10.5

 

(1,293,666

)

(21.8

)

405,613

 

10.9

 

542,545

 

12.5

 

(136,931

)

(25.2

)

Equipment & Iand Rental

 

5,276,790

 

10.9

 

6,387,229

 

11.2

 

(1,110,439

)

(17.4

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(15,827

)

(0.4

)

73,638

 

1.7

 

(89,466

)

(121.5

)

Outside Services

 

400,974

 

0.8

 

631,300

 

1.1

 

(230,326

)

(36.5

)

2,852

 

0.1

 

140,725

 

3.2

 

(137,873

)

(98.0

)

Entertainers Fees

 

350,297

 

0.7

 

1,159,870

 

2.0

 

(809,573

)

(69.8

)

(12,976

)

(0.3

)

214,363

 

4.9

 

(227,339

)

(106.1

)

Outside Services

 

751,271

 

1.6

 

1,791,170

 

3.2

 

(1,089,900

)

(58.1

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

59,620

 

1.6

 

146,928

 

3.4

 

(87,309

)

(59.4

)

Advertising-Media

 

1,051,931

 

2.2

 

1,726,166

 

3.0

 

(674,235

)

(39.1

)

59,620

 

1.6

 

146,928

 

3.4

 

(87,309

)

(59.4

)

Advertising

 

1,051,931

 

2.2

 

1,726,166

 

3.0

 

(674,235

)

(39.1

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

38,683

 

1.0

 

49,335

 

1.1

 

(10,652

)

(21.6

)

Special Events

 

281,706

 

0.6

 

406,756

 

0.7

 

(125,050

)

(30.7

)

1,906

 

0.1

 

5,697

 

0.1

 

(3,791

)

(66.5

)

Promotional Expense

 

14,493

 

0.0

 

62,701

 

0.1

 

(48,208

)

(76.9

)

12,310

 

0.3

 

7,030

 

0.2

 

5,280

 

75.1

 

Promotional Expense-Gaming

 

98,257

 

0.2

 

96,291

 

0.2

 

1,966

 

2.0

 

52,899

 

1.4

 

62,063

 

1.4

 

(9,163

)

(14.8

)

Promotional

 

394,456

 

0.8

 

565,748

 

1.0

 

(171,291

)

(30.3

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

16,794

 

0.5

 

(8,734

)

(0.2

)

25,523

 

292.3

 

Utilities-Disposal

 

234,932

 

0.5

 

196,406

 

0.3

 

33,526

 

19.6

 

196,887

 

5.3

 

307,774

 

7.1

 

(110,837

)

(36.0

)

Utilities-Gas & Electric

 

2,184,565

 

4.5

 

2,811,338

 

5.0

 

(626,773

)

(22.3

)

19,567

 

0.5

 

(9,008

)

(0.2

)

28,575

 

317.2

 

Utilities-Water & Sanitation

 

199,319

 

0.4

 

134,671

 

0.2

 

64,648

 

48.0

 

233,248

 

6.3

 

290,031

 

6.7

 

(56,734

)

(19.6

)

Utilities

 

2,618,815

 

5.4

 

3,142,415

 

5.5

 

(523,599

)

(16.7

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

42,547

 

1.1?

 

?0,663

 

1.9

 

(38,117

)

(47.3

)

Insurance

 

491,097

 

1.0

 

272,896

 

0.5

 

218,201

 

80.0

 

(642,907

)

(17.3

)

91,725

 

2.1

 

(734,632

)

(800.9

)

Insurance-Gnrl Liab/Wrk [ILLEGIBLE]

 

(162,907

)

(0.3

)

546,901

 

1.0

 

(709,808

)

(129.8

)

(600,360

)

(16.1

)

172,389

 

4.0

 

(772,749

)

(443.3

)

Insurance

 

328,190

 

0.7

 

819,797

 

1.4

 

(491,607

)

(60.0

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

400

 

0.0

 

—

 

—

 

400

 

—

 

Employee Relation-[ILLEGIBLE]

 

84,639

 

0.2

 

2,517

 

0.0

 

82,122

 

3,262.5

 

2,076

 

0.1

 

—

 

—

 

2,076

 

—

 

Employee Relation-Goodwill

 

14,043

 

0.0

 

34,879

 

0.1

 

(20,836

)

(59.7

)

2,476

 

0.1

 

—

 

—

 

2,476

 

—

 

Employee Relation

 

98,682

 

0.2

 

37,396

 

0.1

 

61,236

 

163.9

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

24,935

 

0.7

 

37,334

 

0.9

 

(12,399

)

(33.2

)

Commissions

 

366,163

 

0.8

 

512,521

 

0.9

 

(146,358

)

(28.6

)

—

 

—

 

—

 

—

 

—

 

—

 

Contribution/Sponsorships

 

—

 

—

 

2,100

 

0.0

 

(2,100

)

(100.0

)

5,646

 

0.2

 

8,480

 

0.2

 

(2,834

)

(33.4

)

Communication Expense

 

54,912

 

0.1

 

65,951

 

0.1

 

(11,040

)

(16.7

)

4,112

 

0.1

 

3,233

 

0.1

 

879

 

27.2

 

Travel and Entertainment

 

50,079

 

0.1

 

57,137

 

0.1

 

(7,058

)

(12.4

)

1,292

 

0.0

 

[ILLEGIBLE]

 

0.1

 

(2,524

)

(66.2

)

Uniforms and Laundry Expense

 

43,580

 

0.1

 

93,624

 

0.2

 

(50,044

)

(53.5

)

52,657

 

2.4

 

44,767

 

1.0

 

7,890

 

17.6

 

Other Expenses

 

311,124

 

0.6

 

858,485

 

1.5

 

(547,361

)

(63.8

)

88,642

 

2.4

 

97,630

 

2.2

 

(8,988

)

(9.2

)

Other Operating Expenses

 

825,857

 

1.7

 

1,589,818

 

2.8

 

(763,960

)

(48.1

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

758,621

 

20.4

%

2,235,530

 

51.5

%

(1,476,959

)

(66.1

)%

Total Operating Expense

 

17,081,770

 

35.4

%

22,390,896

 

39.4

%

(5,309,125

)

(23.7

)%

 

4

--------------------------------------------------------------------------------

 

 

085 CP Tahoe, LP - Montbleu

Unaudited

 

Income Statement

 

 

As of Thursday, December 31, 2009

 

 

Month-To-Date

 

 

 

Year-To-Date

 

December-2009

 

% of Rev

 

December-2008

 

% of Rev

 

2009/2008
Variance

 

Var %

 

 

 

December-2009

 

% of Rev

 

December-2008

 

% of Rev

 

2009/2008
Variance

 

Var %

 

696,700

 

18.7

%

(480,716

)

(11.1

)%

1,177,416

 

244.9

%

EBITDA

 

2,057,126

 

4.3

%

4,098,178

 

7.2

%

(2,041,052

)

(49.8

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

402,431

 

10.8

%

675,739

 

15.6

%

(273,308

)

(40.4

)%

Depreciation and Amortization

 

4,802,408

 

10.0

%

5,806,497

 

10.2

%

(1,004,090

)

(17.3

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

294,269

 

7.9

%

(1,156,455

)

(26.7

)%

1,450,724

 

125.4

%

Operating Income (loss)

 

(2,745,282

)

(5.7

)%

[ILLEGIBLE]

 

(3.0

)%

(1,036,962

)

(60.7

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

—

 

—

 

—

 

—

 

—

 

—

 

Other Income

 

—

 

—

 

9,750

 

0.0

 

(9,750

)

(100.0

)

—

 

—

 

462

 

0.0

 

(462

)

(100.0

)

Interest Income

 

—

 

—

 

2,020

 

0.0

 

(2,020

)

(100.0

)

—

 

—

 

462

 

0.0

%

(462

)

(100.0

)%

Total Non-Operating revenue

 

—

 

—

 

11,770

 

0.0

%

(11,770

)

(100.0

)%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

—

 

—

 

22,788,723

 

640.4

 

(27,788,723

)

(100.0

)

Write Down/Impairment

 

—

 

—

 

27,788,723

 

48.9

 

(27,788,723

)

(100.0

)

—

 

—

 

—

 

—

 

—

 

—

 

Interest Expense

 

126

 

0.0

 

—

 

—

 

126

 

—

 

4,334

 

0.1

 

—

 

—

 

4,334

 

—

 

Other Non-Operating Expense

 

65.000

 

0.1

 

26,000

 

0.0

 

39,000

 

150.0

 

(4,334

)

(0.1

)%

[ILLEGIBLE]

 

(640.4

)%

[ILLEGIBLE]

 

100.0

%

Total Non-Operating expanse

 

(65,126

)

(0.1

)%

(27,814,723

)

(49.0

)%

27,749,597

 

99.3

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

287,601

 

7.7

%

(23,969,538

)

(667.6

)%

29,257,139

 

101.0

%

Net Income

 

(2,812,742

)

(5.8

)%

(29,536,095

)

(52.0

)%

[ILLEGIBLE]

 

90.5

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

696,700

 

18.7

%

(480,716

)

(11.1

)%

1,177,416

 

244.9

%

EBITDA

 

2,057,126

 

4.3

%

4,098,178

 

7.2

%

(2,041,052

)

(49.8

)%

 

5

--------------------------------------------------------------------------------

 

 

EXHIBIT B
STATEMENT OF GROSS REVENUES AND
PERCENTAGE RENT CALCULATION
LEASE YEAR 2009

 

Amounts reflected on CP Tahoe, LP - MontBleu Income Statement:

 

Total Gross Revenues as defined in Section 2.10

 

$

48,194,664

 

 

Less:

Exclusions from Gross Revenues

 

 

 

 

 

(i)

Proceeds from sale of property

 

(

)

 

 

(ii)

Security Deposits

 

(

)

 

 

(iii)

Taxes

 

(

)

 

 

(iv)

Condemnations

 

(

)

 

 

(v)

Insurance Proceeds

 

(

)

 

 

(vi)

Credit Card Commissions

 

(

)

 

 

(vii)

Contract Tips/Commissions

 

(

)

 

 

(viii)

Credits/Refunds

 

(

)

 

 

(ix)

Interest Income

 

(

)

 

 

(x)

Reserve for Uncollectable Accounts

 

(

)

 

 

Gross Revenues for 2009 lease year subject to annual percentage rent calculation

 

$

48,194,664

 

 

 

 

 

Gross Revenue threshold for each lease year pursuant to Section 2.4

 

(50,000,000

)

 

 

 

 

Gross Revenues in excess of the $50,000,000 lease year annual threshold

 

0

 

 

 

 

 

Percentage Rent Factor

 

x

10

%

 

 

 

 

Percentage Rent due for lease year 2009

 

$

0

 

 

5

--------------------------------------------------------------------------------