Document:

Exhibit 4. 25 

 

ISRAELI SHARE OPTION PLAN

 

 

 

CAN-FITE BIOPHARMA LTD.

 

THE 2003 ISRAELI SHARE OPTION PLAN

 

(In compliance with Amendment No. 132 of the Israeli
Tax Ordinance, 2002)

 

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ISRAELI SHARE OPTION PLAN

 

 

 

TABLE OF CONTENTS

 

	1. PURPOSE OF THE ISOP	3
	 	 
	2. DEFINITIONS	3
	 	 
	3. ADMINISTRATION OF THE ISOP	6
	 	 
	4. DESIGNATION OF PARTICIPANTS	7
	 	 
	5. DESIGNATION OF OPTIONS PURSUANT TO SECTION 102 	8
	 	 
	6. TRUSTEE	8
	 	 
	7. SHARES RESERVED FOR THE ISOP	9
	 	 
	8. PURCHASE PRICE	10
	 	 
	9.  ADJUSTMENTS	10
	 	 
	10. TERM AND EXERCISE OF OPTIONS	12
	 	 
	11. VESTING OF OPTIONS	13
	 	 
	12. PURCHASE FOR INVESTMENT	14
	 	 
	13. SHARES SUBJECT TO RIGHT OF FIRST REFUSAL	14
	 	 
	14. DIVIDENDS	14
	 	 
	15. RESTRICTIONS ON ASSIGNABILITY AND SALE OF OPTIONS	15
	 	 
	16. EFFECTIVE DATE AND DURATION OF THE ISOP	15
	 	 
	17. AMENDMENTS OR TERMINATION	15
	 	 
	18. GOVERNMENT REGULATIONS	16
	 	 
	19. CONTINUANCE OF EMPLOYMENT	16
	 	 
	20. GOVERNING LAW & JURISDICTION	16
	 	 
	21. TAX CONSEQUENCES	16
	 	 
	22. NON-EXCLUSIVITY OF THE ISOP	17
	 	 
	23. MULTIPLE AGREEMENTS	17
	 	 
	24. LOCK-UP	17

 

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ISRAELI SHARE OPTION PLAN

 

 

 

This plan, as amended from time
to time, shall be known as Can-fite Biopharma Ltd 2003 Israeli Share Option Plan (the “ISOP”).

 

		1.	PURPOSE OF THE ISOP

 

The ISOP is intended to provide
an incentive to retain, in the employ of the Company and its Affiliates (as defined below), persons of training, experience, and
ability, to attract new employees, directors, consultants, service providers and any other entity which the Board shall decide
their services are considered valuable to the Company, to encourage the sense of proprietorship of
such persons, and to stimulate the active interest of such persons in the development and financial success of the Company by providing
them with opportunities to purchase shares in the Company, pursuant to the ISOP approved by the Board.

 

		2.	DEFINITIONS

 

For purposes of integrating the
ISOP and related documents (including the Option Agreement and its appendixes), the following definitions
shall apply:

 

		2.1	“Affiliate” means any “employing company” within the meaning of
Section 102(a) of the Ordinance.

 

		2.2	“Approved 102 Option” means an Option granted pursuant to Section 102(b) of
the Ordinance and held in trust by a Trustee for the benefit of the Optionee.

 

		2.3	“Board” means the Board of Directors of the Company.

 

		2.4	“Capital Gain Option (CGO)” means an Approved 102 Option elected and designated
by the Company to qualify under the capital gain tax treatment in accordance with the provisions of Section 102(b)(2) of the Ordinance.

 

		2.5	“Cause” means, henceforth and hereinafter (i) conviction of any felony involving
moral turpitude or affecting the Company; (ii) any refusal to carry out a reasonable directive of the Company’s CEO, Board
or the Optionee’s direct supervisor, which involves the business of the Company or its affiliates and was capable of being
lawfully performed; (iii) embezzlement of funds of the Company or its affiliates; (iv) any breach of the Optionee’s fiduciary
duties or duties of care of the Company; including without limitation disclosure of confidential information of the Company; and
(v) any conduct (other than conduct in good faith) reasonably determined by the Board to be materially detrimental to the Company.

 

		2.6	“Chairman” means the chairman of the Committee.

 

		2.7	“Committee” means a share option compensation committee appointed by the Board,
which shall consist of no fewer than two members of the Board.

 

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ISRAELI SHARE OPTION PLAN

 

 

 

		2.8	“Company” means Can-fite Biopharma Ltd, an Israeli company.

 

		2.9	“Companies Law” means the Israeli Companies Law 5759-1999, as now in effect
or as hereafter amended.

 

		2.10	“Controlling Shareholder” shall have the meaning ascribed to it in Section 32(9)
of the Ordinance.

 

		2.11	“Date of Grant” means the date determined by the Board or authorized Committee
as seth forth in Exhibit B to the Option Agreement.

 

		2.12	Employee” means a person who is employed by the Company or its Affiliates, including
an individual who is serving as a director or an office holder, but excluding Controlling Shareholder.

 

		2.13	“Expiration date” means the date upon which an Option shall expire, as set forth
in Section 10.2 of the ISOP.

 

		2.14	“Fair Market Value” means as of any date, the value of a Share determined as
follows:

 

(i)
If the Shares are listed on any established stock exchange or a national market system, including without limitation the NASDAQ
National Market system, or the NASDAQ SmallCap Market of the NASDAQ Stock Market, the Fair Market Value shall be the closing sales
price for such Shares (or the closing bid, if no sales were reported), as quoted on such exchange or system for the last market
trading day prior to time of determination, as reported in the Wall Street Journal, or such other source as the Board deems
reliable. Without derogating from the above, solely for the purpose of Section 102(b)(3) of the Ordinance, if at the Date of
Grant the Company’s shares are listed on any established stock exchange or a national market system or if the Company’s
shares will be registered for trading within ninety (90) days following the Date of Grant, the Fair Market Value of a Share at
the Date of Grant shall be determined in accordance with the average value of the Company’s shares on the thirty (30) trading
days preceding the Date of Grant or on the thirty (30) trading days following the date of registration
for trading, as the case may be;

 

(ii) If the Shares are regularly
quoted by a recognized securities dealer but selling prices are not reported, the Fair Market Value shall be the mean between the
high bid and low asked prices for the Shares on the last market trading day prior to the day of determination,
or;

 

(iii) In the absence of an established
market for the Shares, the Fair Market Value thereof shall be determined in good faith by the Committee.

 

		2.15	“IPO” means the initial public offering of the Company’s shares.

 

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ISRAELI SHARE OPTION PLAN

 

 

 

		2.16	“ISOP” means this 2003 Israeli Share Option Plan.

 

		2.17	“ITA” means the Israeli Tax Authorities.

 

		2.18	“Non-Employee” means a consultant, adviser, service provider, Controlling Shareholder
or any other person who is not an Employee.

 

		2.19	“Ordinary Income Option (OIO)” means an Approved 102 Option elected and designated
by the Company to qualify under the ordinary income tax treatment in accordance with the provisions of Section 102(b)(1) of the
Ordinance.

 

		2.20	“Option” means an option to purchase one or more Shares of the Company pursuant
to the ISOP.

 

		2.21	“102 Option” means any Option granted to Employees pursuant to Section 102 of
the Ordinance.

 

		2.22	“3(i) Option” means an Option granted pursuant to Section 3(i) of the Ordinance
to any person who is Non-Employee.

 

		2.23	“Optionee” means a person who receives or holds an Option under the ISOP.

 

		2.24	“Option Agreement” means the share option agreement between the Company and
an Optionee that evidences and sets out the terms and conditions of an Option.

 

		2.25	“Ordinance” means the 1961 Israeli Income Tax Ordinance [New Version] 1961 as
now in effect or as hereafter amended.

 

		2.26	“Purchase Price” means the price for each Share subject to an Option.

 

		2.27	“Section 102” means section 102 of the Ordinance as now in effect or as hereafter
amended.

 

		2.28	“Share” means the ordinary share, NIS 0.01 par value each, of the Company.

 

		2.29	“Successor Company” means any entity the Company is merged to or is acquired
by, in which the Company is not the surviving entity.

 

		2.30	“Transaction” means (i) merger, acquisition or reorganization of the Company
with one or more other entities in which the Company is not the surviving entity, (ii) a sale of all or substantially all
of the assets of the Company.

 

		2.31	“Trustee” means any individual appointed by the Company to serve as a trustee
and approved by the ITA, all in accordance with the provisions of Section 102(a) of the Ordinance.

 

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ISRAELI SHARE OPTION PLAN

 

 

 

		2.32	“Unapproved 102 Option” means an Option granted pursuant to Section 102(c) of
the Ordinance and not held in trust by a Trustee.

 

		2.33	“USSOP” means the Company’s 2002 US Share Option Plan.

 

		2.34	“Vested Option” means any Option that has already been vested according to the
Vesting Dates.

 

		2.35	“Vesting Dates” means, as determined by the Board or authorized Committee, the
date as of which the Optionee shall be entitled to exercise the Options or part of the Options, as set forth in section
11 of the below.

 

		3.	ADMINISTRATION OF THE ISOP

 

		3.1	The Board shall have the power to administer the ISOP either directly or upon the recommendation
of the Committee. Notwithstanding the above, the Board shall automatically have residual authority if no Committee shall be constituted
or if such Committee shall cease to operate for any reason whatsoever.

 

		3.2	The Committee shall select one of its members as its Chairman and shall hold its meetings at such
times and places as the Chairman shall determine. The Committee shall keep records of its meetings and shall make such rules and
regulations for the conduct of its business, as it shall deem advisable.

 

		3.3	The Committee shall have the power to recommend to the Board and the Board shall have the full
power and authority to: (i) designate Optionees; (ii) determine the terms and provisions of the respective Option Agreements (which
need not be identical) including, but not limited to, the number of Shares in the Company to be covered by each Option, provisions
concerning the time and the extent to which the Options may be exercised and the nature and duration of restrictions as to the
transferability or restrictions constituting substantial risk of forfeiture; (iii) accelerate the right of an Optionee to exercise
in whole or in part, any previously granted Option; (iv) determine the Fair Market Value of the Shares covered by each Option;
(v) to interpret the provisions and supervise the administration of the ISOP (vi) to make an election as to the type of Approved
102 Option; (vii) designate the type of Options granted; and (viii) to make all other determinations deemed necessary or advisable
for the administration of the ISOP, including, without limitation, to adjust the terms of the ISOP or any Option Agreement so as
to reflect (a) changes in applicable laws and (b) the laws of other jurisdictions within which the Company wishes to grant Options.

 

		3.4	Notwithstanding the above, the Committee shall not be entitled to grant Options to the Optionees,
however, it will be authorized to issue Shares underlying Options which have been granted by the Board and duly exercised pursuant
to the provisions herein in accordance with section 112(a)(5) of the Companies Law.

 

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ISRAELI SHARE OPTION PLAN

 

 

 

		3.5	The Board shall have the authority to grant, at its discretion, to the holder of an outstanding
Option, in exchange for the surrender and cancellation of such Option, a new Option having a purchase price equal to, lower
than or higher than the Purchase Price of the original Option so surrendered and canceled and containing
such other terms and conditions as the Committee may prescribe in accordance with the provisions of the ISOP.

 

		3.6	Subject to the Company’s Articles of Association, all decisions and selections made by the
Board or the Committee pursuant to the provisions of the ISOP shall be made by a majority of its members except that no member
of the Board or the Committee shall vote on, or be counted for quorum purposes, with respect to any proposed action of the Board
or the Committee relating to any Option to be granted to that member. Any decision reduced to writing shall be executed in accordance
with the provisions of the Company’s Articles of Association, as the same may be in effect from time to time.

 

		3.7	The interpretation and construction by the Committee of any provision of the ISOP or of any Option
Agreement hereunder shall be final and conclusive unless otherwise determined by the Board.

 

		3.8	Subject to the Company’s Articles of Association and the Company’s decision, and to
all approvals legally required, including, but not limited to the provisions of the Companies Law, each member of the Board or
the Committee shall be indemnified and held harmless by the Company against any cost or expense (including counsel fees) reasonably
incurred by him, or any liability (including any sum paid in settlement of a claim with the approval of the Company) arising out
of any act or omission to act in connection with the ISOP unless arising out of such member's own fraud or bad faith, to the extent
permitted by applicable law. Such indemnification shall be in addition to any rights of indemnification the member may have as
a director or otherwise under the Company's Articles of Association, any agreement, any vote of shareholders or disinterested directors,
insurance policy or otherwise.

 

		4.	DESIGNATION OF PARTICIPANTS

 

		4.1	The persons eligible for participation in the ISOP as
Optionees shall include any Employees and/or Non-Employees of the Company or of any Affiliate; provided,
however, that (i) Employees may only be granted 102 Options; and (ii) Non-Employees and/or
Controlling Shareholders may only be granted 3(i) Options.

 

		4.2	The grant of an Option hereunder shall neither entitle the Optionee to participate nor disqualify
the Optionee from participating in, any other grant of Options pursuant to the ISOP or any other option or share plan of the Company
or any of its Affiliates.

 

		4.3	Notwithstanding anything in the ISOP to the contrary, all grants of Options to directors and office
holders ("Nosei Misra" as such term is defined in the Companies Law) shall be authorized and implemented in accordance
with the provisions of the Companies Law or any successor act or regulation, as in effect from time to time.

 

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ISRAELI SHARE OPTION PLAN

 

 

 

		5.	DESIGNATION OF OPTIONS PURSUANT TO SECTION 102

 

		5.1	The Company may designate Options granted to Employees pursuant to Section 102 as Approved 102
Options or as Unapproved 102 Options.

 

		5.2	The grant of Approved 102 Options shall be made under this ISOP adopted by the Board, and shall
be conditioned upon the approval of this ISOP by the ITA.

 

		5.3	Approved 102 Options may either be classified as Capital Gain Options (“CGOs”)
or Ordinary Income Options (“OIOs”).

 

		5.4	No Approved 102 Option may be granted under the ISOP to any eligible Employee, unless and until,
the Company’s election of the type of Approved 102 Option as CGO or as OIO that will be granted to Employees (the “Election”),
is appropriately filed with the ITA. Such Election shall become effective beginning the first Date of Grant of an Approved 102
Option under this ISOP and shall remain in effect until the end of the year following the year in which the Company first granted
Approved 102 Options. The Election shall obligate the Company to grant only the type of Approved 102 Option it has elected, and
shall apply to all Optionees who were granted Approved 102 Options during the period indicated herein, all in accordance with the
provisions of Section 102(g) of the Ordinance. For the avoidance of doubt, such Election shall not prevent the Company from granting
Unapproved 102 Options simultaneously.

 

		5.5	For the avoidance of doubt, the designation of Approved 102 Options and Unapproved 102 Options
shall be subject to the terms and conditions of Section 102 of the Ordinance and the regulations promulgated thereunder.

 

		6.	TRUSTEE

 

		6.1	Approved 102 Options, which shall be granted under the ISOP and/or any Shares allocated or issued
upon exercise of such Approved 102 Options and/or other shares received subsequently following any realization of rights, including
without limitation bonus shares, shall be allocated or issued to the Trustee and held for the benefit of the Optionees, for such
period of time as required by Section 102 or any regulations, rules or orders or procedures promulgated thereunder. In the case
the requirements for Approved 102 Options are not met, then the Approved 102 Options shall be treated as Unapproved 102 Options,
all in accordance with the provisions of Section 102 and regulations promulgated thereunder.

 

		6.2	Notwithstanding anything to the contrary, the Trustee shall not release any Shares allocated or
issued upon exercise of Approved 102 Options prior to the full payment of the Optionee’s tax liabilities arising from Approved
102 Options which were granted to him and/or any Shares allocated or issued upon exercise of such
Options.

 

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ISRAELI SHARE OPTION PLAN

 

 

 

		6.3	With respect to any Approved 102 Option, subject to the provisions of Section 102 and any rules
or regulation or orders or procedures promulgated thereunder, an Optionee shall not be entitled to sell or release from trust any
Share received upon the exercise of an Approved 102 Option and/or any share received subsequently following any realization of
rights, including without limitation, bonus shares, until the lapse of the holding period required under Section 102 of the Ordinance

 

		6.4	Upon receipt of an Approved 102 Option, the Optionee will sign an undertaking to release the Trustee
from any liability in respect of any action or decision duly taken and bona fide executed in relation with the ISOP, or any Approved
102 Option or Share granted to him thereunder.

 

		7.	SHARES RESERVED FOR THE ISOP; RESTRICTION THEREON

 

		7.1	The Company has reserved ______________ (                 )
authorized but unissued Shares, for the purposes of the ISOP and the USSOP and for the purposes of similar future plans, subject
to adjustment as set forth in Section 9 below. Any Shares which remain unissued and which are not subject to the outstanding Options
at the termination of the ISOP shall cease to be reserved for the purpose of the ISOP, but until termination of the ISOP the Company
shall at all times reserve sufficient number of Shares to meet the requirements of the ISOP. Should any Option for any reason expire
or be canceled prior to its exercise or relinquishment in full, the Shares subject to such Option may again be subjected to an
Option under the ISOP or under the Company’s other share option plans.

 

		7.2	Each Option granted pursuant to the ISOP, shall be evidenced by a written Option Agreement between
the Company and the Optionee, in such form as the Board or the Committee shall from time to time approve. Each Option Agreement
shall state, inter-alia, the number of Shares to which the Option relates, the type of Option granted (whether a
CGI, OIO, Unapproved 102 Option or a 3(i) Option), the Vesting Dates, the Purchase Price per share, the Expiration Date and such
other terms and conditions as the Committee or the Board in its discretion may prescribe, provided that they are consistent with
this ISOP.

 

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ISRAELI SHARE OPTION PLAN

 

 

  

		7.3	Until the consummation of an IPO, the Shares shall be
voted by an irrevocable proxy (the”Proxy”), such Proxy to be assigned to the CEO of the Company (the “Proxy
Holder”). The Proxy Holder shall vote all such shares subject to the Proxy, at any meeting of the shareholders of the
Company, pro rata to the votes of all other shares actually voted at such meeting, so that the shares subject to the proxy shall
not influence in any way the vote of shares of the Company. The Proxy Holder shall be indemnified and held harmless by the Company
against any cost or expense (including counsel fees) reasonably incurred by him/her, or any liability (including any sum paid
in settlement of a claim with the approval of the Company) arising out of any act or omission to act in connection with the voting
of such Proxy unless arising out of such member’s own fraud or bad faith, to the extent permitted by applicable law. Such indemnification
shall be in addition to any rights of indemnification the person(s) may have as a director or otherwise under the Company’s Articles
of Association, any agreement, any vote of shareholders or disinterested directors, insurance policy or otherwise.

 

		8.	PURCHASE PRICE

 

		8.1	The Purchase Price of each Share subject to an Option
shall be determined by the Committee in accordance with applicable law, subject to any guidelines as may be determined by the
Board from time to time. Each Option Agreement will contain the Purchase Price determined for each Optionee.

 

		8.2	The Purchase Price shall be payable upon the exercise
of the Option in a form satisfactory to the Committee, including without limitation, by cash or check. The Committee shall have
the authority to approve in specific cases other means of payment or to postpone the date of payment on such terms as it may determine.

 

		8.3	The Purchase Price shall be denominated in the currency
of the primary economic environment of, either the Company or the Optionee (that is the functional currency of the Company or
the currency in which the Optionee is paid) as determined by the Company.

 

		9.	ADJUSTMENTS

 

			Upon the occurrence of any of the following described
events, Optionee's rights to purchase Shares under the ISOP shall be adjusted as hereafter
provided:

  

		9.1	In the event of a Transaction, the unexercised Options then outstanding under the ISOP shall be
assumed, or substituted for an appropriate number of shares of each class of shares or other securities of the Successor Company
(or a parent or subsidiary of the Successor Company) as were distributed to the shareholders of the Company in respect of the Transaction.
In the case of such assumption and/or substitution of shares, appropriate adjustments shall be made to the Purchase Price to reflect
such action, and all other terms and conditions of the Option Agreements, such as the Vesting Dates, shall remain in force, subject
to the sole discretion of the Committee.

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ISRAELI SHARE OPTION PLAN

 

 

 

		9.2	Notwithstanding the above and subject to any applicable
law, the Board or the Committee shall have full power and authority to determine that in certain Option Agreements there shall
be a clause instructing that, if in any such Transaction as described in section 9.1 above, the Successor Company (or parent or
subsidiary of the Successor Company) does not agree to assume or substitute for the Options the Vesting Dates shall be accelerated
so that any unvested Option or any portion thereof shall be immediately vested as of the date which is ten (10) days prior to
the effective date of the Transaction.

 

		9.3	For the purposes
of section 9.1 above, an Option shall be considered assumed or substituted
if, following the Transaction, the Option confers the right to purchase or receive,
for each Share underlying an Option immediately prior to the Transaction, the consideration
(whether shares, options, cash, or other securities or property) received in the
Transaction by the shareholders for each share held on the effective date of the Transaction
(and if such holders were offered a choice of consideration, the type of consideration
chosen by the holders of a majority of the outstanding shares); provided, however,
that if such consideration received in the Transaction is not solely ordinary shares
(or their equivalent) of the Successor Company or its parent or subsidiary, the Committee
may, with the consent of the Successor Company, provide for the consideration
to be received upon the exercise of the Option to be solely ordinary shares (or
their equivalent) of the Successor Company or its parent or subsidiary equal in Fair Market
Value to the per share consideration received by holders of a majority of the outstanding
shares in the Transaction; and provided further that the Committee may determine,
that in lieu of such assumption or substitution of Options for options of the Successor
Company or its parent or subsidiary, such Options will be substituted for any other type of
asset or property including cash which is fair under the circumstances.

  

		9.4	If the Company is voluntarily liquidated or dissolved
while unexercised Options remain outstanding under the USSOP, the Company shall immediately notify all unexercised Option holders
of such liquidation, and the Option holders shall then have ten (10) days to exercise any unexercised Vested Option held by them
at that time, in accordance with the exercise procedure set forth herein. Upon the expiration of such ten-days period, all remaining
outstanding Options will terminate immediately.

  

		9.5	If the outstanding shares of the Company shall at any
time be changed or exchanged by declaration of a share dividend (bonus shares), share split, combination or exchange of shares,
recapitalization, or any other like event by or of the Company, and as often as the same shall occur, then the number, class and
kind of the Shares subject to the ISOP or subject to any Options therefore granted, and the Purchase Prices, shall be appropriately
and equitably adjusted so as to maintain the proportionate number of Shares without changing the aggregate Purchase Price, provided,
however, that no adjustment shall be made by reason of the distribution of subscription rights (rights offering) on outstanding
share. Upon happening of any of the foregoing, the class and aggregate number of Shares issuable pursuant to the ISOP (as set
forth in paragraph 7 hereof), in respect of which Options have not yet been exercised, shall be appropriately adjusted, all as
will be determined by the Board whose determination shall be final.

 

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ISRAELI SHARE OPTION PLAN

 

 

  

		9.6	Anything herein to the contrary notwithstanding, if prior
to the completion of an IPO all or substantially all of the shares of the Company are to be sold, or in case of a Transaction,
all or substantially all of the shares of the Company are to be exchanged for securities of another Company, then each Optionee
shall be obliged to sell or exchange, as the case may be, any Shares such Optionee purchased under the ISOP, in accordance with
the instructions issued by the Board in connection with the Transaction, whose determination shall be final.

 

		10.	TERM AND EXERCISE OF OPTIONS

 

		10.1	Options shall be exercised by the Optionee by giving
written notice and the payment of the purchase price to the Company, in such form and method as may be determined by the Company
and when applicable, by the Trustee in accordance with the requirements of Section 102, which exercise shall be effective upon
receipt of such notice by the Company and the payment of the Purchase Price at its principal office. The notice shall specify
the number of Shares with respect to which the Option is being exercised.

 

		10.2	Options, to the extent not previously exercised, shall
terminate forthwith upon the earlier of: (i) the date set forth in Exhibit B to the Option Agreement; and (ii) the expiration
of any extended period in any of the events set forth in section 10.5 below.

 

		10.3	The Options may be exercised by the Optionee in whole
at any time or in part from time to time, to the extent that the Options become vested and exercisable, prior to the Expiration
Date, and provided that, subject to the provisions of section 10.5 below, the Optionee is employed by or providing services to
the Company or any of its Affiliates, at all times during the period beginning with the granting of the Option and ending upon
the date of exercise.

 

		10.4	Subject to the provisions of section 10.5 below, in the
event of termination of Optionee’s employment or services, with the Company or any of its Affiliates, all Options granted
to such Optionee will immediately expire. A notice of termination of employment or service shall be deemed to constitute termination
of employment or service.

 

		10.5	Notwithstanding anything to the contrary hereinabove,
an Option may be exercised after the date of termination of Optionee’s employment or services with the Company or any Affiliate
during an additional period of time beyond the date of such termination, but only with respect to the number of Vested Options
at the time of such termination according to the Vesting Dates of the Options, if:

 

		(i)	termination is without
Cause, in which event any Vested Option still in force and unexpired may be exercised within a period of ninety (90) days after
the date of such termination; or-

 

		(ii)	termination is the result
of death or disability of the Optionee, in which event any Vested Option still in force and unexpired may be exercised
within a period of twelve (12) months after the date of such termination; or
-

 

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ISRAELI SHARE OPTION PLAN

 

 

 

		(iii)	prior to the date of such termination, the Committee
shall authorize an extension of the terms of all or part of the Vested Options beyond the date of such termination for a period
not to exceed the period during which the Options by their terms would otherwise have been exercisable.

 

			For avoidance of any doubt, if termination of employment
or service is for Cause, any outstanding unexercised Option, will immediately expire and terminate, and the Optionee shall not
have any right in connection to such outstanding Options.

 

		10.6	To avoid doubt, the holders of Options shall not have
any of the rights or privileges of shareholders of the Company in respect of any Shares purchasable upon the exercise of any part
of an Option, nor shall they be deemed to be a class of shareholders or creditors of the Company for purpose of the operation
of sections 350 and 351 of the Companies Law or any successor to such section, until registration of the Optionee as holder of
such Shares in the Company’s register of shareholders upon exercise of the Option in accordance with the provisions of the
ISOP, but in case of Options and Shares held by the Trustee, subject to the provisions of Section 6 of the ISOP.

 

		10.7	Any form of Option Agreement authorized by the ISOP may
contain such other provisions as the Committee may, from time to time, deem advisable.

 

		10.8	With respect to Unapproved 102 Option, if the Optionee
ceases to be employed by the Company or any Affiliate, the Optionee shall extend to the Company and/or its Affiliate a security
or guarantee for the payment of tax due at the time of sale of Shares, all in accordance with the provisions of Section 102 and
the rules, regulation or orders promulgated thereunder.

 

		10.9	Notwithstanding anything to the contrary herein above,
in the event of termination of Optionee’s employment or service with the Company or any Affiliate, when the employee continues
to provide services (or vice versa) to the Company or any Affiliate, the Options granted to such Optionee shall not be affected
by such change in the Optionee’s status, and the employee will be allowed to keep the Options pursuant to its original terms.

 

		11.	VESTING OF OPTIONS

 

		11.1	Subject to the provisions of the ISOP, each Option shall
vest following the Vesting Dates and for the number of Shares as shall be provided in the Option Agreement. However, no Option
shall be exercisable after the Expiration Date.

 

		11.2	An Option may be subject to such other terms and conditions
on the time or times when it may be exercised, as the Committee may deem appropriate. The vesting provisions of individual Options
may vary.

 

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ISRAELI SHARE OPTION PLAN

 

 

  

		12.	PURCHASE FOR INVESTMENT

 

			The Company’s obligation
to issue or allocate Shares upon exercise of an Option granted under the ISOP
is expressly conditioned upon (a) the Company’s completion of any registration or other
qualifications of such Shares under all applicable laws, rules and regulations or (b) representations
and undertakings by the Optionee (or his legal representative, heir or legatee, in the
event of the Optionee’s death) to assure that the sale of the Shares complies with any registration
exemption requirements which the Company in its sole discretion shall deem necessary
or advisable. Such required representations and undertakings may include representations
and agreements that such Optionee (or his legal representative, heir, or legatee): (a)
is purchasing such Shares for investment and not with any present intention of selling or otherwise
disposing thereof; and (b) agrees to have placed upon the face and reverse of any certificates
evidencing such Shares a legend setting forth (i) any representations and undertakings which
such Optionee has given to the Company or a reference thereto and (ii) that, prior
to effecting any sale or other disposition of any such Shares, the Optionee must furnish to the
Company an opinion of counsel, satisfactory to the Company, that such sale or disposition will
not violate the applicable laws, rules, and regulations, whether of the State of Israel or of the United
States or any other State having jurisdiction over the Company and the Optionee.

  

		13.	SHARES SUBJECT TO RIGHT OF FIRST REFUSAL

 

		13.1	Notwithstanding anything to the contrary in the Articles
of Association of the Company, none of the Optionees shall have a right of first refusal in relation with any sale of shares in
the Company.

 

		13.2	Unless otherwise determined by the Committee, until such
time as the Company shall complete an IPO, an Optionee shall not have the right to sell Shares issued upon the exercise of an
Option within six (6) months of the date of exercise of such Option or issuance of such Shares. After the lapse of such six months
period, until such time as the Company shall complete an IPO, the sale of Shares issuable upon the exercise of an Option shall
be subject to a right of first refusal in accordance with the provisions of the Company’s Articles of Association.

  

		14.	DIVIDENDS

 

			Subject to
the Company’s Articles of Association, with respect to all Shares (but excluding, for avoidance
of any doubt, any unexercised Options) issued upon the exercise of Options held by the
Optionee or by the Trustee, as the case may be, the Optionee shall be entitled to receive dividends
in accordance with the quantity of such Shares, and subject to any applicable taxation on
distribution of dividends, and when applicable subject to the provisions of Section 102 and the
rules, regulations or orders promulgated thereunder.

 

    	14

    	 

    

 

ISRAELI SHARE OPTION PLAN

 

 

 

		15.	RESTRICTIONS ON ASSIGNABILITY AND SALE OF OPTIONS

 

		15.1	No Option or any right with respect thereto, purchasable
hereunder, whether fully paid or not, shall be assignable, transferable or given as collateral or any right with respect to it
given to any third party whatsoever, and during the lifetime of the Optionee each and all of such Optionee's rights to purchase
Shares hereunder shall be exercisable only by the Optionee.
	 	 	 
	 	 	Any such action made directly or indirectly, for an
immediate validation or for a future one, shall be void.

 

		14.2	As long as the Shares are held by the Trustee on behalf
of the Optionee, all rights of the Optionee over the Shares are personal, can not be transferred, assigned, pledged or mortgaged,
other than by will or pursuant to the laws of descent and distribution.

 

		16.	EFFECTIVE DATE AND DURATION OF THE ISOP

 

			The ISOP shall be effective as of the date that it is adopted by the Board and shall
                                                                              terminate at the end of ten (10) years from such day of adoption.

 

		17.	AMENDMENTS OR TERMINATION

 

		17.1	The Board may at any time, but when applicable, after
consultation with the Trustee, amend, alter, suspend or terminate the ISOP.

 

		17.2	No amendment, alteration,
suspension or termination of the ISOP shall impair the rights of any Optionee,
unless mutually agreed otherwise between the Optionee and the Company, which agreement must
be in writing and signed by the Optionee and the Company. Termination of the
ISOP shall not affect the Committee’s ability to exercise the powers granted to it hereunder
with respect to Options granted under the ISOP prior to the date of such termination.

 

		17.3	In the event
of any inconsistency or contradiction between any term of provision contained
in the ISOP and any provisions contained in the Company’s Articles of Association, the
terms and provisions in the Articles of Association shall govern and supersede the terms and
provisions contained herein.

 

    	15

    	 

    

 

ISRAELI SHARE OPTION PLAN

 

 

 

		18.	GOVERNMENT REGULATIONS

 

			The ISOP, and the granting and exercise of
                                                                            Options hereunder, and the obligation of the Company to sell and deliver
                                                                            Shares under such Options, shall be subject to all applicable laws, rules,
                                                                            and regulations, whether of the State of Israel or of the United States or any other State having
                                                                            jurisdiction over the Company and the Optionee, including the registration of the Shares under
                                                                            the United States Securities Act of 1933, and the Ordinance and to such approvals by any governmental
                                                                            agencies or national securities exchanges as may be required. Nothing herein shall be
                                                                            deemed to require the Company to register the Shares under the securities laws of any jurisdiction.

 

		19.	CONTINUANCE OF EMPLOYMENT OR HIRED SERVICES

 

			Neither the
ISOP nor the Option Agreement with the Optionee shall impose any obligation on the
Company or an Affiliate thereof, to continue any Optionee in its employ or service, and nothing
in the ISOP or in any Option granted pursuant thereto shall confer upon any Optionee any
right to continue in the employ or service of the Company or an Affiliate thereof or restrict the
right of the Company or an Affiliate thereof to terminate such employment or service at any time.

 

		20.	GOVERNING LAW & JURISDICTION

 

			The ISOP
shall be governed by and construed and enforced in accordance with the requirements relating
to the administration of stock option plans under the laws of the State of Israel applicable to
contracts made and to be performed therein, without giving effect to the principles of conflict of
laws. The competent courts of Tel-Aviv, Israel shall have sole jurisdiction in any matters pertaining
to the ISOP.

 

		21.	TAX CONSEQUENCES

 

		21.1	Any tax consequences arising from the grant or exercise
of any Option, from the payment for Shares covered thereby or from any other event or act (of the Company and/or its Affiliates,
the Trustee or the Optionee), hereunder, shall be borne solely by the Optionee. The Company and/or its Affiliates and/or the Trustee
shall withhold taxes according to the requirements under the applicable laws, rules, and regulations, including withholding taxes
at source. Furthermore, the Optionee shall agree to indemnify the Company and/or its Affiliates and/or the Trustee and hold them
harmless against and from any and all liability for any such tax or interest or penalty thereon, including without limitation,
liabilities relating to the necessity to withhold, or to have withheld, any such tax from any payment made to the Optionee.

 

		21.2	The Company and/or, when applicable, the Trustee shall
not be required to release any Share certificate to an Optionee until all required payments have been fully made.

 

    	16

    	 

    

 

ISRAELI SHARE OPTION PLAN

 

 

 

		21.3	To the extent provided by the terms of an Option Agreement,
the Optionee may satisfy any tax withholding obligation relating to the exercise or acquisition of Shares under an Option
by any of the following means (in addition to the Company’s right to withhold from
any compensation paid to the Optionee by the Company) or by a combination of such means: (i)
tendering a cash payment; (ii) subject to the Committee’s approval on the payment
date, authorizing the Company to withhold Shares from the Shares otherwise issuable
to the Optionee as a result of the exercise or acquisition of Shares under the Option in an
amount not to exceed the minimum amount of tax required to be withheld by law;
or (iii) subject to Committee approval on the payment date, delivering to the Company owned
and unencumbered Shares; provided that Shares acquired on exercise of Options have been held
for at least 6 months from the date of exercise.

 

		22.	NON-EXCLUSIVITY OF THE ISOP

 

The adoption of
the ISOP by the Board shall not be construed as amending, modifying or rescinding
any previously approved incentive arrangements or as creating any limitations on the power
of the Board to adopt such other incentive arrangements as it may deem desirable, including,
without limitation, the granting of Options otherwise than under the ISOP, and such arrangements
may be either applicable generally or only in specific cases. 

 

For the avoidance
of doubt, prior grant of options to Optionees of the Company under their employment
agreements, and not in the framework of any previous option plan, shall not be deemed an approved
incentive arrangement for the purpose of this section.

 

		23.	MULTIPLE AGREEMENTS

 

The terms of each
Option may differ from other Options granted under the ISOP at the same time, or at any other
time. The Board may also grant more than one Option to a given Optionee during
the term of the ISOP, either in addition to, or in substitution for, one or more Options previously
granted to that Optionee.

 

		24	LOCK-UP

 

The Optionee acknowledges
that in the event that the Company’s shares shall be registered for trading
in any public market, Optionee’s rights to sell the Shares may be subject to certain limitations
(including a lock-up period), as will be requested by the Company or its underwriters, and
the Optionee unconditionally agrees and accepts any such limitations. Without derogating from
the above, the Optionee shall abide by a lock-up for the following periods: (i) one hundred and
eighty (180) days beginning on the effective date of the registration statement pursuant to which
an IPO was effected; and (ii) ninety (90) days beginning on the effective date of any subsequent
underwritten registration of the Company’s equity securities.

 

    	17Exhibit 10.1

 

  

 

 

 

 

 

 

amended
and restated sedona agreement

dated
march 28, 2013

 

 

 

 

 

 

 

    	 

    	 

    

 

 

THE FOLLOWING DOCUMENT, UNTIL FULLY EXECUTED BY THE PARTIES
IN ITS FINAL FORM IS A SETTLEMENT COMMUNICATION MADE PURSUANT TO RULE 408 OF THE ARIZONA AND FEDERAL RULES OF EVIDENCE.

 

AMENDED AND RESTATED SEDONA AGREEMENT

 

EFFECTIVE DATE: March 28,
2013

 

PARTIES

 

IMH Financial Corporation, a Delaware
corporation, f/k/a IMH Secured Loan Fund, LLC;

 

IMH Special Asset NT 233, LLC, an
Arizona limited liability company;

 

IMH Special Asset NT 232, LLC, an Arizona limited liability company;

 

L’Auberge Newco, LLC, an
Arizona limited liability;

 

Orchards Newco, LLC, an Arizona limited liability company;

 

HL Newco, LLC, an Arizona limited
liability company;

 

HL, LLC, an Arizona limited liability
company;

 

L’Auberge Orchards, LLC, an
Arizona limited liability company;

 

Albert B. Spector, Jr., individually;

 

Orchards Annex, LLC, an Arizona limited liability company;

 

Orchards Inn & Restaurant, LLC, an Arizona limited
liability company;

 

L’Auberge de Sedona, LLC, an Arizona limited liability
company;

 

Taos Cantina LLC, an Arizona limited liability company;

 

Canyon Portal II, LLC, an Arizona limited liability company;

 

Sedona Culinary Concepts, LLC, an Arizona limited liability
company;

 

Spector Offices LLC,
an Arizona limited liability company;

 

Barrett Realty, LLC, an Arizona limited liability company;

 

L’Auberge Spa,
LLC, an Arizona limited liability company; and

 

    	 

    	 

    

 

Chicago Title Insurance Company

 

TABLE OF CONTENTS

 

	 	 	Page
	1.	Information to Lender Parties.	8
	2.	Diligence and Confirmation.	9
	3.	Warranties and Representations of Conveying Parties.	14
	4.	Warranties and Representations of Lender Parties.	22
	5.	Interim Agreements of Parties.	23
	6.	As-Is Transaction.	23
	7.	Closing; Closing Conditions.	24
	8.	Conveyance and Closing Documents.	25
	9.	Employees.	28
	10.	Indemnities	29
	11.	Release of Released Lender Parties.	29
	12.	Release of Released Borrower Parties.	30
	13.	Remedies.	31
	14.	Attorneys’ Fees.	33
	15.	Jurisdiction and Venue.	33
	16.	Brokerage.	33
	17.	WAIVER OF JURY TRIAL.	33
	18.	Transaction Costs; Operating Accounts; Transition.	33
	19.	Additional Terms.	36
	20.	Confidentiality.	37
	21.	Non-Disparagement.	37
	22.	Entire Agreement.	38
	23.	Governing Law.	38
	24.	Waiver.	38
	25.	Time.	38
	26.	Counterpart.	38
	27.	No Partnership.	38
	28.	Effective Agreement.	38
	29.	Joint and Several Liability.	39

 

    	i

    	 

    

 

	30.	Post-Closing Operation.	39
	31.	Legal Representation.	39
	32.	Cooperation.	39
	33.	Notices.	40
	34.	IRS Real Estate Reporting.	41
	35.	Construction.	41
	36.	Incorporation of Recitals.	42
	37.	No Recordation.	42
	38.	Entire Transaction.	42
	39.	Additional Consideration.	42

  

LIST OF SCHEDULES AND EXHIBITS

 

	Schedule A-i	HL Loan Documents
	Schedule A-ii	LA Loan Documents
	Schedule 3(d)	Pending or Threatened Litigation
	Schedule 3(e)	Bankruptcy Proceedings
	 	 
	Exhibit B	LaMerra Land Legal Description
	Exhibit F-i	L’Auberge Land Legal Description
	Exhibit F-ii	Orchards Inn Land Legal Description
	Exhibit F-iii	Description of Delivery and Installation of Pre-Fabricated Cottage
	Exhibit G-i	Affordable Housing Lease 
	Exhibit G-ii	Temporary Housing Lease 
	Exhibit G-iii	Sinagua Storage Lease 
	Exhibit G-iv	Sinagua Parking Lease 
	Exhibit H	Orchards Annex Lease 
	Exhibit I-i	Orchards Inn Parking Lease 
	Exhibit I-ii	Orchards Inn Laundry Lease
	Exhibit J	Schnebly Hill Land Legal Description
	Exhibit K-i	Orchards Inn & Restaurant, LLC Assets and Liabilities 
	Exhibit K-ii	L’Auberge de Sedona, LLC Assets and Liabilities 
	Exhibit R	Canyon Breeze Service Agreement
	Exhibit 1(a)-i	List of Contracts, Accounts Payable, Accounts Receivable and Deposits (LaMerra Property) 
	Exhibit 1(a)-ii	List of Contracts, Accounts Payable, Accounts Receivable and Deposits (L’Auberge Property)
	Exhibit 1(a)-iii	List of Contracts, Accounts Payable, Accounts Receivable and
    Deposits (Orchards Inn Property)

 

    	ii

    	 

    

 

LIST OF SCHEDULES AND EXHIBITS

 

	Exhibit 1(a)-iv	List of Contracts, Accounts Payable, Accounts
    Receivable and Deposits (Schnebly Hill Property)
	Exhibit 1(a)-v	List of Contracts, Accounts Payable,
    Accounts Receivable and Deposits (Orchards Annex Property Lease)
	Exhibit 1(a)-vi	List of Contracts, Accounts Payable,
    Accounts Receivable and Deposits (Orchards Inn Parking Lease)
	Exhibit 1(a)-vii	List of Contracts, Accounts Payable,
    Accounts Receivable and Deposits (Sinagua Storage Lease)
	Exhibit 1(a)-viii	List of Contracts, Accounts Payable,
    Accounts Receivable and Deposits (Sinagua Parking Lease)
	Exhibit 1(a)-ix	List of Contracts, Accounts Payable,
    Accounts Receivable and Deposits (Affordable Housing Lease Interest)
	Exhibit 1(a)-x	List of Contracts, Accounts Payable,
    Accounts Receivable and Deposits (Temporary Housing Lease Interest)
	Exhibit 1(f)-i	Licenses and Permits (LaMerra Property)
    
	Exhibit 1(f)-ii	Licenses and Permits (L’Auberge
    Property) 
	Exhibit 1(f)-iii	Licenses and Permits (Orchards Inn Property)
    
	Exhibit 1(f)-iv	Licenses and Permits (Schnebly Hill
    Property)
	Exhibit 1(f)-v	Licenses and Permits (Orchards Annex
    Property Lease) 
	Exhibit 1(f)-vi	Licenses and Permits (Orchards Inn Parking
    Lease)
	Exhibit 1(f)-vii	Licenses and Permits (Sinagua Plaza
    Storage Lease) 
	Exhibit 1(f)-viii	Licenses and Permits (Sinagua Plaza
    Parking Lease) 
	Exhibit 1(f)-ix	Licenses and Permits (Affordable Housing
    Lease) 
	Exhibit 1(f)-x	Licenses and Permits (Temporary Housing
    Lease)
	Exhibit 1(h)	List of All Leases including LaMerra
    Property, L’Auberge Property, Orchards Inn Property, Schnebly Hill Property, Orchards Annex Property, Orchards Inn Parking,
    Sinagua Plaza Storage, Sinagua Plaza Parking, Affordable Housing, Temporary Housing
	Exhibit 1(m)	Personal Property Inventory Form
	Exhibit 1(m)-i	Personal Property Inventory (LaMerra
    Property) 
	Exhibit 1(m)-ii	Personal Property Inventory (L’Auberge
    Property) 
	Exhibit 1(m)-iii	Personal Property Inventory (Orchards
    Inn Property) 
	Exhibit 1(m)-iv	Personal Property Inventory (Schnebly
    Hill Property)
	Exhibit 1(m)-v	Personal Property Inventory (Orchards
    Annex Property Lease) 
	Exhibit 1(m)-vi	Personal Property Inventory (Orchards
    Inn Parking Lease) 
	Exhibit 1(m)-vii	Personal Property Inventory (Sinagua
    Plaza Storage Lease) 
	Exhibit 1(m)-vii	Personal Property Inventory (Sinagua
    Plaza Parking Lease)
	Exhibit 1(m)-ix	Personal Property Inventory (Affordable
    Housing Lease) 
	Exhibit 1(m)-x	Personal Property Inventory (Temporary
    Housing Lease) 
	Exhibit 2(c)	Permitted Encumbrances for All Properties
	Exhibit 2(d)(ii)	Orchards Annex Property Lease Legal
    Description
	Exhibit 2(d)(iii)-A	Assignment and Assumption of Lease and
    Consent to Assignment of Lease (Orchards Annex
    Property)

 

    	1

    	 

    

 

LIST OF SCHEDULES AND EXHIBITS

 

	Exhibit 2(d)(iii)-B	Assignment and Assumption of Lease and Consent to Assignment of Lease (Orchards Inn Parking Lease)
	Exhibit 2(d)(iii)-C	Assignment and Assumption of Lease and Consent to Assignment of Lease (Sinagua Plaza Storage Lease)
	Exhibit 2(d)(iii)-D	Assignment and Assumption of Lease and Consent to Assignment of Lease (Sinagua Plaza Parking Lease)
	Exhibit 2(d)(iii)-E	Assignment and Assumption of Lease and Consent to Assignment of Lease (Affordable Housing Lease)
	Exhibit 2(d)(iii)-F	Assignment and Assumption of Lease and Consent to Assignment of Lease (Temporary Housing Lease)
	Exhibit 2(d)(iii)-G	Assignment and Assumption of Lease and Consent to Assignment (Orchards Inn
     Telephone Room Lease Interest)
	Exhibit 2(f)	FCB Payments
	Exhibit 3(c)-i	Tenants (LaMerra Property) 
	Exhibit 3(c)-ii	Tenants (L’Auberge Property) 
	Exhibit 3(c)-iii	Tenants (Orchards Inn Property)
	Exhibit 3(c)-iv	Tenants (Schnebly Hill Property) 
	Exhibit 3(c)-v	Tenants (Orchards Annex Property) 
	Exhibit 3(c)-vi	Tenants (Orchards Inn Parking Lease) 
	Exhibit 3(c)-vii	Tenants (Sinagua Plaza Storage Lease) 
	Exhibit 3(c)-viii	Tenants (Sinagua Plaza Parking Lease) 
	Exhibit 3(c)-ix	Tenants (Affordable Housing Lease)
	Exhibit 3(c)-x	Tenants (Temporary Housing Lease)
	Exhibit 3(h)	Assignment and Assumption of Declarant’s Rights and Appointment of Design Review Committee (LaMerra Property)
	Exhibit 3(m)	Title Disputes
	Exhibit 3(n)	Tax Liabilities
	Exhibit 3(p)	Actual or Threatened Claims with Respect to All Properties
	Exhibit 3(q)	Transactions with Related Parties
	Exhibit 3(u)	Non-Transferring Assets
	Exhibit 3(x)(i)	List of Employees
	Exhibit 3(x)(ii)	Labor Unions
	Exhibit 3(x)(iii)	Collective Bargaining Agreements
	Exhibit 3(x)(iv)	Employee Agreements Involving Property
	Exhibit 3(x)(v)	Strikes and Labor Actions
	Exhibit 3(x)(vi)	Pending or Threatened Investigations or Claims 
	Exhibit 3(x)(ix)	Compensation and Termination Agreements 
	Exhibit 4(d)	Third-Party Authorizations of Transaction 
	Exhibit 4(e)	Consents to Transaction
	Exhibit 5(a)	Permitted Modifications of Agreement, Properties, and Business Practices
	Exhibit 8(a)-i	Special Warranty Deed Conveying LaMerra Property to HL Newco, LLC

  

    	2

    	 

    

 

LIST OF SCHEDULES AND EXHIBITS

 

	Exhibit 8(a)-ii	Special Warranty Deed Conveying L’Auberge Property to L’Auberge Newco, LLC 
	Exhibit 8(a)-iii	Special Warranty Deed Conveying Orchards Inn Property to Orchards Newco, LLC 
	Exhibit 8(b)-i	Bill of Sale and Assignment and Assumption (LaMerra Property)
	Exhibit 8(b)-ii	Bill of Sale and Assignment and Assumption (L’Auberge Property) 
	Exhibit 8(b)-iii	Bill of Sale and Assignment and Assumption (Orchards Inn Property)
	Exhibit 8(c)-i	Estoppel Certificate in Support of Deed in Lieu of Foreclosure HL LLC, an Arizona limited liability company (LaMerra Property)
	Exhibit 8(c)-ii	Estoppel Certificate in Support of Deed in Lieu of Foreclosure L’Auberge Orchards, LLC (L’Auberge Property)
	Exhibit 8(c)-iii	Estoppel Certificate in Support of Deed in Lieu of Foreclosure L’Auberge Orchards, LLC (Orchards Inn Property)
	Exhibit 8(g)	Assignment and Assumption of L’Auberge de Sedona, LLC Assets and Liabilities 
	Exhibit 8(h)	Assignment and Assumption of Orchards Inn & Restaurant, LLC Assets and Liabilities
	Exhibit 8(o)-i	HL Loan Satisfaction and Release
	Exhibit 8(o)-ii	LA Loan Satisfaction and Release
	Exhibit 8(p)	Assignment and Assumption of Noble House Letter
	Exhibit 8(q)-i	Request for Assignment of Surface Water Application and Claim and Assignment and Reissuance of Permits (LaMerra)
	Exhibit 8(q)-ii	Request for Assignment of Surface Water Application and Claim and Assignment and Reissuance of Permits (L’Auberge)
	Exhibit 8(q)-iii	Request for Assignment of Surface Water Application and Claim and Assignment and Reissuance of Permits (Orchards Inn)
	Exhibit 8(q)-iv	Assignment of Gila River Adjudication Claim (LaMerra) 
	Exibit 8(q)-v	ADWR Request to Change Well Information (LaMerra)
	Exhibit 8(t)	Assignment of Spector Canyon Portal II, L.L.C. Membership Interest
	Exhibit 8(u)	Day of Closing Protocol
	Exhibit 9(a)	List of L’Auberge and Orchards Inn Employees
	Exhibit 18(a)	Approved Budget
	Exhibit 18(c)	Scheduled Assumed Liabilities
	Exhibit 18(o)	Voting Trust Agreement
	Exhibit 19(g)	Avion Noble House Payment Terms
	Exhibit 39	Avion Nobel House Letter

  

    	3

    	 

    

 

INDEX OF DEFINED TERMS

 

(TO BE UPDATED)

 

	 	Page
	Adjusted Settlement Protocol	31
	Affordable Housing Lease Interest	4
	Amara	3
	Assignment of Declarant’s Rights	15
	Assignment of Spector 28.175% Canyon Portal II Membership Interest	26
	Assignments of Leases	24
	Avion Noble House Letter	43
	Avion Noble House Payment	42
	Avion Noble House Payment	38
	Avion Payment	35
	Bills of Sale	24
	Borrower Parties	2
	Borrower Releasing Parties	29
	Borrower-related Parties’ Conditions to Closing	23
	Borrowers	2
	Canyon Breeze Service Agreement	7
	Canyon Portal II	1
	Claims	28
	Closing	22
	Closing Accounts Payable	34
	Closing Date	22
	Closing Documents	24
	Code	47
	Code	19
	Consent to Assignment of Lease	12
	Contracts	9
	Conveying Parties	2
	Conveying Party	2
	Deeds	24
	Defaulting Party	30
	Embargoed Person	16, 21
	Employee Benefit Plans	19
	ERISA	18
	ERISA Affiliate	19
	Escrow Agent	2
	Estoppel Certificates	24
	Excluded Items	31
	First Credit Bank Loan	6

  

    	1

    	 

    

  

	HIDC	3
	HL Borrower	1
	HL Loan	3
	HL Newco	1
	HL Noteholder	1
	IMHFC	1
	Indemnified Liabilities	28
	Indemnified Person	28
	Intentionally Omitted	7
	Key Contacts	10
	L'Auberge de Sedona, LLC	2
	L'Auberge de Sedona, LLC Assets and Liabilities	5
	L'Auberge Land	4
	L'Auberge Newco	1
	L'Auberge Property	4
	LA Borrower	2
	LA Loan	3
	LA Noteholder	1
	LaMerra Property	3
	Lease Interest	4
	Lease Interests	4
	Leases	9
	Lender Parties	1
	Lender Parties' Conditions to Closing	23
	Lender Parties' Notice	12
	Lenders	1
	Licensees	39
	Licenses	39
	List	21
	List	16
	Loans	6
	Management Transition Date	26
	Multiemployer Plan	19
	Noble House Letter	42
	Non-defaulting Party	31
	Noteholders	1
	OFAC	16, 20
	Operating Reports	8
	Orchards Annex	2, 4
	Orchards Annex Payment	25
	Orchards Annex Property Lease Interest	4
	Orchards Inn	2, 4

 

    	2

    	 

    

 

	Orchards Inn Assets and Liabilities	5
	Orchards Inn Land	4
	Orchards Inn Laundry Lease Interest	5
	Orchards Inn Parking Lease Interest	4
	Orchards Inn Property	4
	Orchards Newco	1
	Original Lender	1
	Owner's Policies	11
	Owner's Policy	11
	Post-Closing Deductible Threshold	32
	Pre-Agreement Rights and Remedies	13
	Pre-Closing Deductible Threshold	32
	Property	6
	Property Information	8
	Property Verification Condition	10
	Property Verification Deadline	10
	Property Verification Documents	11
	Property Verification Period	10
	Released Borrower Liabilities	30
	Released Borrower Parties	30
	Released Lender Liabilities	29
	Released Lender Parties	29
	Reports	47
	Reservations	9
	Resolution Period	12
	Retained Employees	27
	Scheduled Assumed Liabilities	35
	Schnebly Hill Land	5
	Schnebly Hill Lender	5
	Schnebly Hill Loan	5
	Schnebly Hill Property	5
	Sinagua Parking Lease Interest	4
	Sinagua Plaza II	4
	Sinagua Storage Lease Interest	4
	Spector	2
	Spector 28.175% Canyon Portal II Membership Interest	13
	Spector Canyon Portal II Membership Interest	3
	Spector Noble House Letter	43
	Spector Noble House Payment	38, 43
	Spector Payment	25
	Spector Trust	2
	Subordination Agreements	5

 

    	3

    	 

    

 

	Taos Cantina	2
	Taos Cantina Management Agreement	7
	Temporary Housing Lease Interest	4
	Tenants	14
	Third Party Consents	12
	Title Assurance	11
	Title Company	2, 11
	Title IV Plan	19
	Title Policy Condition	22
	Transferee Entities	1
	Transferees	39
	Trustee	2
	Voting Trust Agreement	36
	WARN Act	18

 

    	4

    	 

    

 

AMENDED AND RESTATED SEDONA AGREEMENT

 

EFFECTIVE DATE:      May ____, 2013

 

PARTIES:

 

IMH Financial Corporation,
a Delaware corporation ("IMHFC"), f/k/a IMH Secured Loan Fund, LLC (IMH Secured Loan Fund, LLC is sometimes referred
to herein as "Original Lender"), whose address is 7001 N. Scottsdale Road, Suite 2050, Scottsdale Arizona 85253;

 

IMH Special Asset NT 233, LLC, an Arizona
limited liability company ("HL Noteholder"), whose address is 7001 N. Scottsdale Road, Suite 2050, Scottsdale
Arizona 85253;

 

IMH Special Asset NT 232, LLC, an Arizona
limited liability company ("LA Noteholder"), whose address is 7001 N. Scottsdale Road, Suite 2050, Scottsdale
Arizona 85253;

 

HL Noteholder and LA Noteholder are collectively
referred to herein as "Noteholders";

 

Original Lender, HL Noteholder and LA Noteholder
are collectively referred to herein as "Lenders";

 

L’Auberge Newco, LLC, an Arizona limited
liability company ("L’Auberge Newco") whose address is 7001 North Scottsdale Road, Suite 2050, Scottsdale,
Arizona 85253;

 

Orchards Newco, LLC, an Arizona limited
liability company ("Orchards Newco"), whose address is 7001 North Scottsdale Road, Suite 2050, Scottsdale, Arizona
85253;

 

HL Newco, LLC, an Arizona limited liability
company ("HL Newco"), whose address is 7001 North Scottsdale Road, Suite 2050, Scottsdale, Arizona 85253;

 

L’Auberge Newco, Orchards Newco, and
HL Newco are collectively referred to herein as the "Transferee Entities";

 

Lenders and Transferee Entities are sometimes
referred to collectively herein as the "Lender Parties";

 

Canyon Portal II, L.L.C.,
an Arizona limited liability company ("Canyon Portal II"), whose address is 6900 E. Camelback Road, Suite 915,
Scottsdale, Arizona 85251;

 

HL, LLC, an Arizona
limited liability company ("HL Borrower"), whose address is 6900 E. Camelback Road, Suite 915, Scottsdale, Arizona
85251;

 

L’Auberge Orchards,
LLC, an Arizona limited liability company ("LA Borrower"), whose address is 6900 E. Camelback Road, Suite 915,
Scottsdale, Arizona 85251;

 

HL Borrower and LA Borrower are collectively
referred to herein as the "Borrowers";

 

    	1

    	 

    

 

Albert B. Spector, Jr., ("Spector")
whose address is 6900 E. Camelback Road, Suite 915, Scottsdale, Arizona 85251; [Note: The Spector Family Trust, wherein Albert
J. Spector, Jr. was Trustee (the "Trustee") created under Second Amendment and Complete Restatement to Trust
Agreement dated May 10, 2004, and Third Amendment to Trust Agreement dated June 20, 2006 sometimes referred to as (the "Spector
Trust"), has expired by its terms];

 

The Borrowers,
Spector and Jacob Gechman, are collectively referred to herein as the "Borrower Parties";

 

Orchard Annex,
LLC, an Arizona limited liability company ("Orchards Annex"), whose address is 6900 E. Camelback Road, Suite
915, Scottsdale, Arizona 85251;

 

Orchards Inn
& Restaurant, LLC, an Arizona limited liability company ("Orchards Inn"), whose address is 6900 E.
Camelback Road, Suite 915, Scottsdale, Arizona 85251;

 

L’Auberge de
Sedona, LLC, an Arizona limited liability company ("L’Auberge de Sedona, LLC"), whose address is 6900 E.
Camelback Road, Suite 915, Scottsdale, Arizona 85251;

 

The Borrower Parties,
Orchards Annex, Orchards Inn, L’Auberge de Sedona, LLC and Taos Cantina, each in its capacity as a conveying party of an
interest hereunder is referred to individually as a "Conveying Party" and collectively are referred to as the
"Conveying Parties";

 

Taos Cantina LLC, an
Arizona limited liability company, whose address is 6900 E. Camelback Road, Suite 915, Scottsdale, Arizona 85251 (the "Taos
Cantina"),

 

Sedona Culinary Concepts, LLC, an
Arizona limited liability company, whose address is 6900 E. Camelback Road, Suite 915, Scottsdale, Arizona 85251
(“Culinary Concepts”),

 

Spector Offices LLC, an Arizona
limited liability company, whose address is 6900 E. Camelback Road, Suite 915, Scottsdale, Arizona 85251 (“Spector
Offices”),

 

Barrett Realty, LLC, an Arizona
limited liability company, whose address is 6900 E. Camelback Road, Suite 915, Scottsdale, Arizona 85251
(“Barrett”),

 

L’Auberge Spa, LLC, an Arizona
limited liability company, whose address is 6900 E. Camelback Road, Suite 915, Scottsdale, Arizona 85251 (“LA
Spa”); and

 

Chicago Title Insurance
Company (“Escrow Agent” and “Title Company”), whose address is 2425 E. Camelback Road, Suite
200, Phoenix, AZ 85016, attn: DeWayne C. Huffman.

 

RECITALS

 

A.           On
or about June 11, 2007, Original Lender made a loan to HL Borrower in the amount of not to exceed THIRTY-TWO MILLION AND NO/100
DOLLARS ($32,000,000.00), which was later increased to FORTY- THREE MILLION FOUR HUNDRED THIRTY-FIVE THOUSAND AND NO/100 DOLLARS
($43,435,000.00) (the "HL Loan"). The HL Loan is evidenced and secured by the HL Loan Documents, as described
in Schedule A-i attached hereto and incorporated herein. Capitalized terms used but not otherwise defined in the
body of this Agreement are defined in such Schedule A-i as well as in Schedule A-ii attached hereto
and incorporated herein.

 

    	2

    	 

    

 

B.           The
HL Deed of Trust is a lien on the real property, including all improvements thereon, located on the land described in Exhibit
B attached hereto and incorporated herein, which legal description reflects the original legal description, as well as
the revised legal description showing the Lots in the plat of the subdivision, now known as "LaMerra," after release
of several of such Lots from the lien of the HL Deed of Trust, and also created a security interest in Original Lender’s
favor in the personal property as described therein and all water rights and claims to water rights appurtenant and related thereto
and wells thereon, including but not limited to those identified by the Arizona Department of Water Resources as Nos. 36-18397.0002,
36-18398.0003, 36-18399.0002, 55-609716, 39-48282, 39-48283, 39-48284 and 39-48285 (collectively, the “LaMerra Water Rights”),
which real and personal property and LaMerra Water Rights (collectively, the "LaMerra Property") is commonly known
as "LaMerra," a residential subdivision along Oak Creek, Yavapai County, Arizona, in which 233 Oak Creek Lots,
LLC (an entity not affiliated with or under the control of any of the Conveying Parties) owns one (1) lot, HL Borrower owns twenty-eight
(28) lots and an affiliate of Lenders owns nine (9) lots. A lease of a parcel of land in the vicinity of SR 89A and Upper Red Rock
Loop Road for use as a potential information center for the LaMerra Property has terminated as of December 31, 2012, and the security
deposit in the amount of $6,000 thereunder is to be refunded by the landlord to HL Noteholder.

 

C.           Spector
continues to own a 66.925% membership interest in Canyon Portal II (the "Spector Canyon Portal II Membership Interest").
Pursuant to the Spector Trust and HIDC HL Security Agreement, the Second Spector Trust HL Security Agreement, and the Restated
Spector Trust/Individual and HIDC HL Security Agreement, Spector and HIDC Investments, LLC ("HIDC") granted a
security interest in twenty eight and one hundred seventy five 1000ths percent (28.175%) of the membership interest in Canyon Portal
II, which security interest is held by HL Noteholder. By the foregoing security agreements, Spector and HIDC also granted a security
interest in membership interests in Amara, LLC, an Arizona limited liability company ("Amara"). Canyon Portal
II is the owner of the Canyon Portal Shopping Center in Sedona, Arizona. Amara no longer owns any property.

 

D.           The
HL Loan and the HL Loan Documents were assigned to HL Noteholder pursuant to the HL Note Allonge, the HL Loan Documents Assignment,
and other assignment documents described in Schedule A-i.

 

E.           On
or about May 7, 2008, Original Lender made a loan to LA Borrower in the amount of not to exceed SEVENTY-TWO MILLION TWO HUNDRED
FIFTY THOUSAND AND NO/100 DOLLARS ($72,250,000.00) (the "LA Loan"). The LA Loan is evidenced and secured by the
LA Loan Documents, as described in Schedule A-ii.

 

    	3

    	 

    

 

F.           The
First LA Deed of Trust is a lien on (i) the real property, including all improvements thereon, located on the land (the "L’Auberge
Land"), as described in Exhibit F-i attached hereto and incorporated herein, and also created a security
interest in Original Lender’s favor in the personal property as described therein and all water rights and claims to water
rights appurtenant and related thereto and wells thereon, including but not limited to those identified by the Arizona Department
of Water Resources as Nos. 36-60294.0001 and 36-69321.0001 (collectively, the “L’Auberge Water Rights”),
which real and personal property includes what is commonly known as the L’Auberge de Sedona Hotel & Resort, including
a hotel and a restaurant and bar in Sedona, Coconino County, Arizona (together with the L’Auberge Water Rights, the "L’Auberge
Property"), and (ii) the real property, including all improvements therein, located on the land (the "Orchards
Inn Land"), as described in Exhibit F-ii attached hereto and incorporated herein, and also created a security
interest in Original Lender’s favor in the personal property described therein and also created a security interest in Original
Lender’s favor in the personal property as described therein and all water rights and claims to water rights appurtenant
and related thereto and wells thereon, including but not limited to that identified by the Arizona Department of Water Resources
as No. 36-42343.0001 (the “Orchards Inn Water Rights”), which real and personal property include what is commonly
known as the “Orchards Inn”, including a hotel and a restaurant in Sedona, Coconino County, Arizona (together
with the Orchards Inn Water Rights, the "Orchards Inn Property"). For purposes of this Agreement, the Orchards
Inn Property shall include LA Borrower’s interest in the one (1) pre- fabricated cottage consisting of approximately 600
square feet currently in storage in the Schulte manufacturing facility in Avondale, Arizona. The delivery and installation with
respect to this cottage are as described in Exhibit F-iii hereto (which sets forth a copy of all documents executed
by or on behalf of LA Borrower with Schulte in connection with such cottage and all material notices delivered in connection therewith)
and remain enforceable by LA Borrower.

 

G.           LA
Borrower holds the following interests: (i) lessee’s interest under a lease (the "Affordable Housing Lease Interest")
with Canyon Portal II for units used for affordable housing, (ii) lessee’s interest under a lease with Canyon Portal II for
five (5) units used as temporary employee housing and a sublandlord’s interest in various subleases related to such units
(together, the "Temporary Housing Lease Interest"); (iii) lessee’s interest under a lease (the "Sinagua
Storage Lease Interest") with Sinagua Plaza II, LLC ("Sinagua Plaza II"), the owner of the Sinagua Shopping
Center, for storage located at the Sinagua Shopping Center, and (iv) lessee’s interest under a lease (the "Sinagua
Parking Lease Interest") with Sinagua Plaza II for parking spaces located at the Sinagua Shopping Center, a complete copy
of each of which, including any amendments, supplements and modifications thereto, is included as Exhibit G-i through G-iv
attached hereto. The leasehold interests referred to in this paragraph are used by LA Borrower in connection with the operation
of L’Auberge Property, although they are not subject to the First LA Deed of Trust.

 

H.           Orchards
Annex holds the lessee’s interest under a lease, a complete copy of which, including any amendments, supplements and modifications
thereto, is included as Exhibit H attached hereto (collectively, the "Orchards Annex Property Lease Interest")
with Canyon Portal II, the owner of the Canyon Portal Shopping Center in Sedona, Coconino County, Arizona, for 28 rooms commonly
referred to as the "Orchards Annex" located at the Canyon Portal Shopping Center. The Orchards Annex is operated as part
of the Orchards Inn but is not subject to the First LA Deed of Trust.

 

    	4

    	 

    

 

I.           Orchards
Inn holds the following interests: lessee’s interest under a lease (the "Orchards Inn Parking Lease Interest")
with Canyon Portal II for parking at the Canyon Portals Shopping Center, and (ii) lessee’s interest under a lease (the "Orchards
Inn Laundry Lease Interest") with Canyon Portal II for the Orchards laundry facility at the Canyon Portal Shopping Center,
a complete copy of each of which, including any amendments, supplements and modifications thereto, is included as Exhibit
I-i through I-ii attached hereto. The leasehold interests referred to in this paragraph are used by Orchards Inn in connection
with the operation of the Orchards Inn Property, but are not subject to the First LA Deed of Trust. Each of the Affordable Housing
Lease Interest, the Temporary Housing Lease Interest, the Sinagua Storage Lease Interest, the Sinagua Parking Lease Interest, the
Orchards Annex Property Lease Interest, the Orchards Inn Parking Lease Interest, the Orchards Inn Laundry Lease Interest and each
other lease interest between a Conveying Party and an affiliate thereof relating to or affecting any or all of the Property are
referred to herein individually as a “Lease Interest” and collectively as the “Lease Interests.”

 

J.           The
Second LA Deed of Trust is a lien granted by the LA Borrower on property in Sedona, Coconino County, Arizona (the "Schnebly
Hill Land") as described in Exhibit J attached hereto and incorporated herein, and also created a security
interest in favor of Original Lender in personal property, as described therein, which real and personal property is collectively
referred to herein as the "Schnebly Hill Property". The Schnebly Hill Property is used as affordable housing by
LA Borrower, and affordable housing is a condition of the zoning. The Schnebly Hill Property is encumbered by a deed of trust that
secures a loan in favor of Bank 1440 (the "Schnebly Hill Lender") with an approximate unpaid principal balance
of $245,180.13 (the "Schnebly Hill Loan").

 

K.          Orchards
Inn is wholly owned by LA Borrower and all of the assets owned or controlled by a Conveying Party, and, subject to the terms and
conditions of this Agreement, liabilities owing by LA Borrower related to the ownership and operation of the Orchards Inn and the
associated restaurant and other facilities are specified in detail on Exhibit K-i hereto with respect to the operation
of the Orchards Inn (collectively, the "Orchards Inn Assets and Liabilities"). L’Auberge de Sedona, LLC
is wholly owned by LA Borrower and all of the assets owned or controlled by a Conveying Party and, subject to the terms and conditions
of this Agreement, liabilities owing by LA Borrower related to the ownership and operation of the L’Auberge Property, and
the associated spa, restaurant and other facilities are specified in detail on Exhibit K-ii hereto (collectively,
the "L’Auberge de Sedona, LLC Assets and Liabilities").

 

L.           The
LA Loan and the LA Loan Documents were assigned to LA Noteholder pursuant to the LA Note Allonge, the First LA Deed of Trust Assignment,
the Second LA Deed of Trust Assignment and the other assignment documents described in Schedule A-ii.

 

M.          Pursuant to (i)
Subordination Agreement between LA Borrower, Original Lender, as Subordinate Lender, and First Credit Bank, as Senior Lender, dated
September 18, 2009, and recorded on September 25, 2009 in the Coconino Records as Instrument No. 3539611, (ii) Subordination Agreement
between LA Borrower, Original Lender, as Subordinate Lender, and First Credit Bank, as Senior Lender, dated September 28, 2010,
and recorded on September 30, 2010 in the Coconino Records as Instrument No. 3575445, and (iii) Subordination Agreement between
LA Borrower, LA Noteholder, as Subordinate Lender, and First Credit Bank, as Senior Lender, dated February 23, 2011, and recorded
on March 9, 2011 in the Coconino Records as Instrument No. 3589822 (collectively, the "Subordination Agreements"),
Original Lender and LA Noteholder have subordinated the specified LA Loan Documents, the LA Loan, and its lien on and security
interest in the "Collateral" defined therein, to the lien of the Senior Deed of Trust, as defined in the Subordination
Agreements, under which First Credit Bank is beneficiary, securing a loan made by First Credit Bank (the "First Credit
Bank Loan") to LA Borrower.

 

    	5

    	 

    

 

N.           The
HL Loan and the LA Loan (collectively, the "Loans") are now due and payable.

 

O.           To
avoid the need for Noteholders and the Borrowers to attempt to exercise their rights and remedies pursuant to the Loans, the Conveying
Parties desire to convey to the Transferee Entities (as designees of Noteholders) as follows: (i) the LaMerra Property to HL Newco;
(ii) the L’Auberge Property; the Temporary Housing Lease Interest, the Sinagua Storage Lease Interest, the Sinagua
Parking Lease Interest, the L’Auberge de Sedona, LLC Assets and Liabilities and the Orchards Inn Assets and Liabilities to
L’Auberge Newco, (iii) the Orchards Inn Property, the Orchards Annex Property Lease Interest, the Orchards Inn Parking Lease
Interest and the Orchards Inn Laundry Lease Interest to Orchards Newco (iv) provide for the right of a designee of a Transferee
Party to exercise the option for the purchase of the Spector 28.175% Canyon Portal II Membership Interest (defined below); and
(v) grant the Option (as defined below) and to provide for the designee of a Transferee Party have the right to exercise the Option
for the purchase of the Schnebly Hill Property and the Affordable Housing Lease Interest, in full and complete satisfaction of
all amounts and all other liabilities and obligations owing under, arising out of or relating to the Loans and the Loan Documents
(in addition to the other consideration set forth in this Agreement), and each party hereto desires to mutually and fully release
(except to the extent set forth herein) each other party hereto, from any and all liabilities and obligations arising out of or
relating to the Loan Documents, and Noteholders agree to cause the Transferee Entities to accept the conveyances, all on the terms
and conditions set forth herein, and each party hereto (as applicable) agrees to pay and perform each of the other of its obligations
contemplated hereby, as consideration for the full and complete satisfaction of all amounts owing and all other liabilities and
obligations under, arising out of or relating to the Loans and the Loan Documents, all on the terms and conditions set forth herein.
The LaMerra Property, the L’Auberge Property, the Option, the Orchards Inn Property, Temporary Housing Lease Interest, the
Sinagua Storage Lease Interest, the Sinagua Parking Lease Interest, the Orchards Annex Property Lease Interest, the Orchards Inn
Parking Lease Interest, and the Orchards Inn Laundry Lease Interest are collectively referred to herein as the "Property".
The Parties have each independently considered the tax implications of the transactions contemplated hereby, including, by consulting
with their respective tax consultants and advisors. The Parties shall each be responsible for any and all respective tax and related
consequences of entering into this Agreement and all agreements related thereto.

 

P.           Intentionally
Omitted.

 

Q.           As
additional consideration for the transactions set forth in this Agreement, concurrent with and as part of the Closing, the Taos
Restaurant shall be managed by Taos Cantina, and Taos Cantina, as manager, and Orchards Newco or its designee, as owner, shall
enter into a management agreement for the Taos Restaurant located on the Orchards Inn Property for the consideration and upon the
terms set forth in a management agreement in a commercially reasonable form and substance for a similar property, to be agreed
upon by the parties thereto acting in good faith prior to the Property Verification Deadline (the "Taos Cantina Management
Agreement"). The Taos Cantina Management Agreement shall provide for: (i) a one (1) year term, commencing on the Closing
Date, which may be renewed by Orchards Newco (in its sole discretion) upon the expiration of the initial term or any applicable
extended term, (ii) a base monthly management fee equal to Ten Thousand Dollars ($10,000), and (iii) an annual incentive management
fee equal to ten percent (10%) of the increase in annual Net Cash Flow of the Taos Restaurant. The Taos Cantina Management Agreement
may be terminated by Orchards NewCo at any time prior to the scheduled expiration thereof: (a) upon payment of a termination fee
to Spector equal to the balance of the base monthly management fee payments that would have been due through the remainder of the
current term, (b) if Spector breaches his obligations hereunder or under any other document or instrument executed in connection
herewith, or (c) upon a sale of disposition of the Property, upon payment of a termination fee to Spector equal to the balance
of the base monthly management fee payments that would have been due through the remainder of the current term. For purposes hereof
“Net Cash Flow” means, with respect to the Taos Restaurant, the recurring cash operating income of the Taos Restaurant
after deducting all cash fees, costs and expenses reasonably related to the operations of the Taos Restaurant, including, without
limitation, property taxes, pass-through expenses, management fees and insurance.

 

    	6

    	 

    

 

R.           As
additional consideration for the transactions set forth in this Agreement, the Sedona Culinary Concepts, LLC, an Arizona limited
liability company, shall provide to Orchards Newco and Orchards Annex, LLC complimentary breakfasts for each guest of the Orchards
Inn and the Orchards Annex in the same manner and on the same terms and conditions as provided prior to November 1, 2012 set forth
in the Canyon Breeze Services Agreement attached hereto as Exhibit R (the "Canyon Breeze Service Agreement")
provided, however, that the Canyon Breeze Service Agreement shall be modified to provide for: (i) a one (1) year term, commencing
upon the Closing Date which may be renewed by Orchards NewCo and/or Orchards Annex, LLC (in their respective sole discretion) upon
the expiration of the initial term or any applicable extended term and (ii) termination by Orchards NewCo and/or Orchards Annex,
LLC upon thirty (30) days notice to Canyon Breeze Restaurant, without penalty or cost.

 

S.           Intentionally
Omitted.

 

T.           LA
Borrower and LA Noteholder have, prior to the date of this Agreement, obtained an increase in the available loan proceeds from
the First Credit Bank Loan in the amount of $7,106,600 and an extension of the maturity date thereunder to March 28, 2014 (the
“FCB Modification”).

 

U.           Intentionally
Omitted.

 

AGREEMENT

 

Now, therefore, in
consideration of the premises and the representations, warranties and agreements herein contained, the receipt and sufficiency
of which are hereby acknowledged, the parties hereto agree as follows:

 

    	7

    	 

    

 

1.          Information
to Lender Parties. Throughout the terms of the Loans, Borrowers have provided to Lenders certain monthly operating statements,
construction draw reports and financial information relating to the ownership, operation, construction, maintenance, repair and
replacement of the property that is the subject of the Loans (collectively, the "Operating Reports"). Notwithstanding
the foregoing, the Conveying Parties will make available to Noteholders and/or Transferee Entities at the Conveying Parties’
offices or other reasonable facilities located near such offices located in Sedona, Arizona or such other location as the Parties
may mutually determine for review during the entire term of the Property Verification Period (defined below), the following information
(collectively, the "Property Information"):

 

(a)          A
full and complete accounting of all paid (since January 1, 2008) and unpaid bills, invoices, expenses and costs relating to the
ownership, management, development, maintenance, construction, refurbishing or repair, operation and leasing of each Property (including
for the Property leasehold interests), including those accounts payable listed on Exhibits 1(a)-i through 1(a)-x attached
hereto and incorporated herein by reference;

 

(b)          Copies
of all bills and invoices for the paid (since January 1, 2008) and unpaid items identified in Section 2(a) above;

 

(c)          Copies
of any past (since January 1, 2008) and current contracts, leases and agreements relating to the current, ongoing management, maintenance,
construction/refurbishing or repair, operation and leasing of the Property (the "Contracts"), including those
contracts as listed on Exhibits 1(a)-i through 1(a)-x attached hereto and incorporated herein;

 

(d)          A
full and complete accounting of all past (since January 1, 2008), including those previously paid) and current accounts receivable
relating to the ownership, operation and leasing of the Property and of all deposits made with or by third parties, including those
listed on Exhibits 1(a)-i through 1(a)-x attached hereto and incorporated herein by reference; above;

 

(e)          Copies
of all bills, invoices or other evidence of the items identified in or related to Section 2(d)

 

(f)           Copies
of all current material licenses and permits, including liquor licenses, relating to the ownership, management, development, construction,
operation and leasing of the Property, including those listed on Exhibits 1(f)-i through 1(f)-x attached hereto and
incorporated herein;

 

(g)          Copies
of any site plans, plat maps, subdivision reports, surveys, plans and specifications, environmental reports, zoning materials,
soil reports, or material correspondence (including from third parties) affecting the applicable Property;

 

(h)          Copies
of all written lease agreements (the "Leases") currently in effect made by the Conveying Parties to tenants of
any Property, along with a full accounting of rent collected from January 1, 2008, to the date that is not more than thirty (30)
days prior to the date that the information has been supplied, and a listing of all security deposits with respect to the Leases,
including, those listed on Exhibit 1(h) attached hereto and incorporated herein;

 

    	8

    	 

    

 

(i)          Records
of all previous (since January 1, 2008) and currently existing room, cabin, restaurant, ballroom, lawn or other reservations (collectively,
the "Reservations") including records of deposits for any of the rooms, cabins, restaurants, ballrooms, lawns
or other areas, or otherwise at the Property;

 

(j)          Copies
of all books, records, and correspondence relating to the ownership, management and operation of the Property and the leasing thereof
since January 1, 2008;

 

(k)         Copies
of all currently in effect documents evidencing or relating to intellectual property, including, trade names, trademarks, or copyrights;

 

(l)          Copies
of such other documents, records and information related to the Property as Noteholders may reasonably request, including with
respect to the Operating Reports previously delivered; and

 

(m)        Upon
commencement of the Property Verification Period, a reasonably detailed preliminary inventory of the personal property currently
or customarily located at the Property as described on Exhibit 1(m) attached hereto and incorporated herein. The
Lender Parties may request for such inventory to be updated and agreed upon in writing at least seven (7) business days before
the Closing Date.

 

1. Diligence and Confirmation.

 

(n)         Subject
to subsection (b) below and the other applicable terms hereof, each of the Noteholders and Transferee Entities (including their
respective consultants, agents and designees) shall have the right to conduct full and unrestricted due diligence, investigation
and analysis of the Property and the Conveying Parties and the Spector Trust (including each of their respective books, records
and related documents) in connection with the transactions contemplated by this Agreement and the decision by the Lender Parties
whether to proceed with the Closing of this Agreement on the Closing Date. Lender Parties and their consultants, agents and designees
shall complete such due diligence, investigation and analysis of the foregoing (the "Property Verification Condition")
during the period (the "Property Verification Period") commencing on the Effective Date and ending on the date
that is sixty (60) days thereafter (the "Property Verification Deadline"); however, the Property Verification
Deadline shall be extended by an additional business day for each business day that there is any material delay: (i) by a Conveying
Party or their consultants, agents and designees in the performance of any of its obligations hereunder, or (ii) in the ability
of a Lender Party to access or receive any of the information, documents or consents required hereunder. The Conveying Parties
and the Lender Parties shall use reasonable efforts to avoid an extension of the Property Verification Deadline beyond the date
that is seventy-five (75) days after the Effective Date. The Conveying Parties shall provide a suitable workspace for six people
during the Property Verification Period to be used by the Noteholders, Transferee Entities and their consultants, agents and designees
for the foregoing due diligence, investigation and analysis, and such persons may continue to use such workspace thereafter for
purposes of preparation of the Closing unless and until this Agreement terminates.

 

    	9

    	 

    

 

(o)          In
order to facilitate the satisfaction of the Property Verification Condition, the Conveying Parties agree that the Lender Parties
or anyone reasonably authorized by them may go upon the Property at reasonable times during the Property Verification Period to
confirm the Property Verification Condition. With three (3) business days’ prior notice to the Conveying Parties, Lender
Parties shall have the right to make reasonable inquiries (directly or indirectly) of contractors, subcontractors, tenants, prospective
tenants, vendors, employees, lenders, guests, consultants, governmental authorities or other third parties (collectively, "Key
Contacts") regarding the Property or the transactions contemplated hereby. Lender Parties have been informed of and acknowledge
the importance to Conveying Parties that Conveying Parties are afforded the opportunity to coordinate and facilitate initial contact
with any Key Contacts to minimize any adverse reaction by such Key Contacts in connection with any such inquiries by Lender Parties.
Although Conveying Parties cannot assure the availability of a Key Contact at any given time, Conveying Parties agree to use good
faith reasonable efforts to achieve such coordination and facilitation within three (3) business days after any request therefor
by a Lender Party. After the Property Verification Deadline and until the Closing Date, Lender Parties may reasonably request updated
information related to the Property, its operations and any other relevant matters, and the Conveying Parties agree to use good
faith reasonable efforts to supplement and update all of such documents, records and information and promptly provide same to Noteholders
and Transferee Entities.

 

(p)          The
Conveying Parties shall not permit any liens, mortgages or encumbrances to exist on any or all of the Property except for those
liens, mortgages and encumbrances set forth on Exhibit 2(c) hereto that Lender Parties have consented to in writing.

 

(q)          During
the Property Verification Period, the applicable Parties shall use good faith reasonable efforts to obtain the following (collectively,
the "Property Verification Documents"):

 

(i)          The
parties acknowledge that prior to the date of this Agreement, the FCB Modification was consummated, and as part of the FCB Modification,
First Credit Bank agreed to extend the term of the First Credit Bank Loan, but did not agree that LA Borrower and any and all other
Borrower Parties having any liability or obligations under the First Credit Bank Loan were released from such liabilities and obligations
under the First Credit Bank Loan. L’Auberge Newco hereby agrees to indemnify and hold harmless Spector for, from and against
all losses, costs and expenses, including, without limitation, reasonable attorneys’ fees directly caused by the Transferee
Parties and arising from the enforcement by FCB of any documents securing the First Credit Bank Loan against Spector (collectively
“FCB Losses”); provided, however, that in no event shall L’Auberge Newco have any obligation to indemnify
or hold harmless Spector on account of FCB Losses arising from any act or omission of a Borrower Party (other than a failure to
make any payment of principal or interest as and to the extent the same first become due and payable after the Closing under the
terms of the First Credit Bank Loan) or the breach by any Borrower Party of any loan document securing or relating to the First
Credit Bank Loan (other than a failure to make any payment of principal or interest as and when required herein).

 

    	10

    	 

    

 

(ii)         Conveying
Parties and Lender Parties jointly shall use reasonable efforts to obtain the affirmative assurance from Title Company that, upon
recordation of the Deeds, the Title Company will irrevocably commit to issue an ALTA extended coverage owner’s title insurance
policies at usual rates (individually, an "Owner’s Policy" and collectively, the "Owner’s
Policies") for the LaMerra Property, insuring HL Newco’s title to that Property described in Exhibit B,
for the L’Auberge Property, insuring L’Auberge Newco’s title to that Property described in Exhibits F-i
and J, for the Orchards Inn Property insuring Orchards Newco’s title to the Orchards Inn Property described in Exhibit
F-ii, for the Orchards Annex Property Lease Interest leasehold title to the property described in Exhibit 2(d)(ii),
and insuring the Option, all in an insured amount requested by those Transferee Entities, subject only to the title exceptions,
contained in Schedule B – Section II of a title commitment for each Property issued by the Title Company and reasonably acceptable
to the Transferee Entity, containing those customary endorsements (to the extent available under each Owner’s Policy), as
each such Transferee Entity may reasonably require, so that the Property may be operated after the Closing in a manner substantially
consistent as has been operated prior to the Closing (collectively, the "Title Assurance"). Except for title exceptions
contained in any lenders’ title insurance policies issued in connection with the HL Loan and the LA Loan on or before January
1, 2011, which title exceptions are deemed approved by Lender Parties, any other title matters shall require the approval of the
Lender Parties, in their sole and absolute discretion, in order to be approved title exceptions under each Owner’s Policy.
Transferee Entities shall provide to (and shall authorize Escrow Agent and Title Company to provide to) Conveying Parties copies
of all title commitments and amendments thereto pertaining to the Property.

 

(iii)        Conveying
Parties (with the reasonable cooperation of the Transferee Entities) shall use reasonable efforts to obtain (A) the Consents to
Assignment of Lease in the forms of Exhibits 2(d)(iii)-A, 2(d)(iii)-B, 2(d)(iii)-C, 2(d)(iii)-D, 2(d)(iii)-E and 2(d)(iii)-F
and 2(d)(iii)-G attached hereto and incorporated herein (the "Consent to Assignment of Lease") to be executed
by the applicable lessor of such lease, (B) consent from any other any party whose consent to the transactions contemplated by
this Agreement is required pursuant to a recorded instrument, and (C) the release of the applicable assignor from any and all liabilities
and obligations under service agreements, delivery contracts, and another vendor contracts relating to the operation of the Property,
subject to the payment of any balances due or owing in accordance with the terms of this Agreement. Notwithstanding the foregoing,
the Transferee Entities shall have the right to terminate, without penalty or cost, any or all of the Lease Interests (or any portion
thereof) at Closing or at any time upon thirty (30) days prior notice to the applicable lessor under such Lease Interest and each
of the Conveying Parties shall cause each Lease Interest to be amended on or prior to the Closing to provide for such right of
termination by the Transferee Entities. The Transferee Entities’ obligation to continue to make rental or other payments
due under any Lease Interest that is not terminated at Closing shall continue until the expiration of the thirtieth (30th) day
after the date such notice is delivered to the applicable lessor.

 

The consents and releases required under Section 2(d)(iii)
collectively are referred to as the "Third Party Consents".

 

    	11

    	 

    

 

(iv)        If
on or before the Property Verification Deadline: (A) Lender Parties reasonably determine that the Property Verification Conditions
are not materially true, complete and correct (without duplication of any already provided materiality standard elsewhere provided)
or otherwise reasonably satisfactory, or (B) Lender Parties and/or Conveying Parties (as the case may be) have not, despite their
diligent good-faith reasonable efforts, obtained any of (1) the Title Assurance, (2) the Third Party Consents, (3) the documents
described in the Exhibits and Schedules hereto, (4) or the other documents and instruments contemplated hereby as of the Property
Verification Deadline, then Lender Parties shall have the right to deliver to Conveying Parties written notice thereof (the "Lender
Parties’ Notice") on or before the Property Verification Deadline, which Lender Parties’ Notice shall describe
in reasonable detail the conditions under clauses (A) and/or (B) above that have not been met or are not satisfactory. If the Lender
Parties deliver a Lender Parties’ Notice pursuant to the immediately preceding sentence, and/or if any of the Title Assurance,
the Third Party Consents or other documents and instruments contemplated hereby have not been timely obtained in accordance with
Section 2(d) above or as otherwise provided herein, then Lender Parties and Conveying Parties shall reasonably and in good
faith attempt to satisfy the outstanding conditions and resolve any matters disputed by Conveying Parties contained in Lender Parties’
Notice, within fifteen (15) days after the expiration of the Property Verification Deadline (the "Resolution Period"),
by exchanging such information as is reasonably necessary or appropriate to attempt to resolve the matter, communicating with applicable
third parties as appropriate and taking any other actions as are reasonably necessary or appropriate. Unless (I) (a) Lenders Parties’
Notice is withdrawn by written notice from Lender Parties or the objections contained therein have been satisfied to the reasonable
satisfaction of the Lender Parties or (b) Lender Parties and Conveying Parties have agreed in writing to proceed to Closing
in accordance with the Adjusted Settlement Protocol (defined below) or otherwise as otherwise agreed upon in writing to resolve
any such disputes, and (II) the Title Assurance and all outstanding Third Party Consents and other documents and instruments contemplated
hereby are obtained (or the Lender Parties, in their sole and absolute discretion, have waived in writing the requirement therefor),
as applicable, on or before the expiration of the Resolution Period, this Agreement automatically shall terminate upon the expiration
of the Resolution Period, the Loan Documents will continue in full force and effect and the parties hereto may pursue any and all
rights and remedies at law or in equity to which they are entitled under the Loan Documents or otherwise (collectively, the "Pre-Agreement
Rights and Remedies"), and no party hereto shall thereafter have any further liability or obligation under this Agreement
to complete the transactions hereunder. Additionally, prior to the expiration of the Resolution Period, the Conveying Parties shall
update the Exhibits, Schedules, and the representations and warranties set forth in this Agreement by written notice to the Lender
Parties within five (5) Business Days of a Conveying Party’s knowledge that any of the information set forth in the Exhibits
or Schedules, or any of the representations or warranties made by a Conveying Party, is not materially true and complete as and
when made or is no longer true and correct; provided that the Conveying Parties shall notify the Lender Parties in writing of any
of the foregoing to the extent discovered during the two (2) business day period prior to the Resolution Period or the Property
Verification Deadline but Lender Parties shall have the right to not proceed with the Closing and terminate this Agreement, whereupon
this Agreement automatically shall terminate, the Loan Documents will continue in full force and effect and the parties hereto
may pursue their Pre-Agreement Rights and Remedies. If (x) the Conveying Parties fail to cure such breach within the earlier of
ten (10) days of discovery of or receipt of notice of such breach or the expiration of the Resolution Period (or the Property Verification
Deadline, if the Resolution Period is not applicable) or (y) Lender Parties do not waive any such breach, this Agreement automatically
shall terminate, the Loan Documents will continue in full force and effect and the parties hereto may pursue their Pre- Agreement
Rights and Remedies. If a Conveying Party is notified by a Lender Party that any of the information set forth in the Exhibits or
Schedules, or any of the representations or warranties made by a Conveying Party, is not materially true and complete as and when
made or is no longer true and correct and the Conveying Parties have failed to cure such requests by a Lender Party regarding such
breach ) the Conveying Parties fail to cure such breach within the earlier of ten (10) days of discovery of or receipt of notice
of such breach or the expiration of the Resolution Period (or the Property Verification Deadline, if the Resolution Period is not
applicable), the Lender Parties shall have the right to terminate this Agreement.

 

    	12

    	 

    

 

(v)         Subject
to the right of termination of Lender Parties as provided in Section 2(d)(iv) above (and subject to the conditions to Closing
under and terms of this Agreement), the parties hereto will proceed with all action necessary to close and deliver all documents
and deliveries required pursuant hereto on or before the Closing Date.

 

(r)          Intentionally
Omitted.

 

(s)          The
additional loan proceeds from the FCB Modification were paid directly to LA Noteholder as a reduction of the amount due and payable
by LA Borrower under the LA Loan. Notwithstanding the foregoing, those certain amounts due and payable by LA Borrower under the
First Credit Bank Loan described on Exhibit 2(f) hereto were paid to First Credit Bank at the closing of the FCB
Modification from the proceeds otherwise payable to LA Noteholder the FCB Modification (together, the “FCB Payments”).
IMHFC agrees that during the term (the “Interest Payment Term”) that commences on the date of the closing of
the FCB Modification and terminates on the earlier to occur of: (i) the Closing Date; or (ii) the date this Agreement is terminated
or is no longer in effect, for any reason, IMHFC shall timely pay to First Credit Bank any interest payments allocable to the sum
of $6,596,792.27 (which represents the amount of the proceeds of the FCB Modification, less the FCB Payments). The interest payments
payable by IMH hereunder shall be calculated on a pro-rata basis, based on the actual number of days in the Interest Payment Term.
On or prior to the Closing Date, the Conveying Parties shall cause an amount equal to the FCB Payments to be reimbursed to LA Noteholder.
In the event First Credit Bank requires payments of real estate taxes, assessments or other similar amounts allocable to the prior
to the Closing Date (together, the “ FCB Tax Payments”) to be paid out of the proceeds of the FCB Modification,
the Conveying Parties shall cause an amount equal to the FCB Tax Payments to be reimbursed to LA Noteholder at the Closing. The
Adjusted Settlement Protocol shall apply to the Conveying Parties’ obligation to reimburse LA Noteholder for the FCB Payments
and the FCB Tax Payments, as more particularly described in Section 13 of this Agreement.

 

    	13

    	 

    

 

(t)          The
Transferee Parties shall have the exclusive option (the “ Option”) to acquire from LA Borrower the Schnebly
Hill Property or the Affordable Housing Lease Interest, or either of them (together, and each, individually, the “Option
Property”). The Option may be exercised by the Transferee Parties (or any of them), in their sole and absolute discretion,
providing written notice to LA Borrower (the “Exercise Notice”) on or prior to the one hundred eightieth (180th)
day following the Closing (the “Option Expiration Date”). If the Transferee Parties timely deliver an Exercise
Notice, then LA Borrower shall convey to a designee of the Transferee Parties, all of LA Borrower’s right, title and interest
in and to the Option Property for $1.00. The closing of such conveyance shall occur no later than the tenth (10th) day following
the date LA Borrower receives the Exercise Notice, and at the closing thereof, (i) with respect to the Schnebly Hill Property,
LA Borrower shall deliver a special warranty deed substantially in the form of Exhibit 8(a)(i) hereto, a bill of
sale and general assignment substantially in the form of Exhibit 8(b)(i) hereto, and such other documents reasonably
required by the Transferee Parties or Escrow Agent to cause Escrow Agent to issue an ALTA extended coverage owners title insurance
policy insuring such designee of the Transferee Parties as the fee simple owner of the Schnebly Hill Property; and (ii) with respect
to the Affordable Housing Lease Interest, LA Borrower shall deliver an assignment and assumption of lease and consent to assignment
of lease substantially in the form of Exhibit 2(d)(iii)-A hereto, and such other documents as are reasonably requested
by the Transferee Parties. The Transferee may record a memorandum of the Option in the official records of the county in which
the Option Property is located. If the Transferee Parties fail to timely exercise the Option prior to the Option Expiration Date,
then the Option shall automatically expire and shall be of no further force or effect and the Transferee Parties shall cause a
release of the Memorandum to be recorded in the official records of the county in which the Option Property is located, and if
the Option expires with respect to the Schnebly Hill Property, the Transferee Parties shall also consent to a sale by LA Borrower
of the Schnebly Hill Property, notwithstanding the terms of the Voting Trust Agreement which may prohibit such a sale; provided
that such sale is for an amount that exceeds the then-outstanding balance of the Schnebly Hill Loan and such sale does not result
in any liability whatsoever to any Transferee Party.

 

(u)          Spector
Offices shall have the exclusive option (the “HIDC Option”) to acquire from HL Noteholder (if acquired by HL
Noteholder or its affiliate) all of its right, title and interest in and to the HIDC Interest (as defined in Section 8(o)
below). The HIDC Option may be exercised by Spector Offices, in its sole and absolute discretion, providing written notice
to LA Noteholder (the “HIDC Exercise Notice”) on or prior to the date which is one hundred eighty days (180)
following the date on which HL Noteholder (or its affiliate) acquires the HIDC Interest (the “HIDC Option Expiration Date”).
If Spector Offices timely delivers an HIDC Exercise Notice, then HL Noteholder shall cause all right, title and interest in and
to the HIDC Interest to Spector Offices for the payment of $200,000.00 (the “HIDC Purchase Price”). The closing
of such conveyance shall occur no later than the tenth (10th) day following the date HL Noteholder receives the HIDC Exercise Notice,
and at the closing thereof, HL Noteholder shall cause an assignment and assumption of the HIDC Interest substantially in the form
of Exhibit 8(t) hereto, and such other documents as are reasonably requested by Spector Offices, and Spector Offices
shall deliver the HIDC Purchase Price to HL Noteholder or its designee. If Spector Offices fail to timely exercise the HIDC Option
prior to the HIDC Option Expiration Date or fails to timely and properly deliver the HIDC Purchase Price, then the HIDC Option
shall automatically expire and shall be of no further force or effect.

 

2.          Warranties
and Representations of Conveying Parties.

 

Subject to the modification
and update of the Exhibits, Schedules, and representations and warranties as contemplated pursuant to Section 2, as of the Effective
Date, the Property Verification Deadline (or, if applicable, the date that the Resolution Period has expired) and the Closing Date,
the Conveying Parties and the Spector Trust jointly and severally represent and warrant to Lender Parties, the accuracy of the
following representations and warranties, the accuracy of which shall be a Lender Parties’ Condition to Closing as set forth
in Section 7:

 

    	14

    	 

    

 

(a)          This
Agreement: (i) is executed voluntarily and not pursuant to any duress; (ii) is executed in mutual good faith among the parties;
(iii) is given for the express consideration set forth in the Recitals above and as otherwise set forth herein; and (iv) is not
given or intended to hinder, delay, or defraud any creditor, or to contravene any of the bankruptcy laws of the United States (11
U.S.C. § 101 et seq.), hereinafter referred to as the Bankruptcy Code, or any other applicable laws;

 

(b)          This
Agreement is not given as security for the payment of money or any indebtedness, or as security of any kind or nature;

 

(c)          Exhibits
3(c)-i through 3(c)-x attached hereto and incorporated herein lists all existing tenants of the applicable Property (the
"Tenants"), and to each Conveying Party’s actual knowledge, there is no default under any Lease on the part
of such Conveying Party or any Tenant except as indicated on Exhibits 3(c)-i through 3(c)-x (provided that all defaults
by a Conveying Party under a Lease shall be cured or waived by the applicable Tenant prior to Closing);

 

(d)          Except
as set forth in Schedule 3(d) attached hereto: (i) no Conveying Party is a party to any pending, current or appealable
litigation, (ii) no Conveying Party has received written notice of any threatened or potential litigation against it, or its Property
and (iii) no Conveying Party has any unsatisfied judgment;

 

(e)          Except
as identified in Schedule 3(e) attached hereto, no proceedings in bankruptcy have been instituted and served or threatened
in writing by or against any Conveying Party (including Spector) in any court, nor has any Conveying Party (including Spector)
made an assignment for the benefit of creditors;

 

(f)          There
will be no service, management, operation, or supply contracts relating to the Property that will be binding on any of the Transferee
Entities upon Closing except as disclosed on Exhibits 1(a)-i through 1(a)-x and on Exhibits 1(h)-i through
1(h)-x. The applicable Conveying Party shall, at the discretion of the Transferee Entities, cause each such contract to
be assigned to the Transferee Entity on the Closing;

 

(g)          Except
as set forth on Schedule 3(d)-i, no Conveying Party has received any notice of material violation with respect to
any Property of Federal or State Laws governing hazardous or toxic waste or substances. Each Conveying Party hereby discloses to
Lender Parties that Borrowers may have stored and used vehicle fuel, fertilizer, and other similar substances on or about the Property
in the ordinary course of business provided the same (i) have been and continue to be in compliance with all applicable environmental
laws, (ii) have not and do not result in contamination of the Property and (iii) have not had and do not otherwise have a material
adverse effect on the Property;

 

    	15

    	 

    

 

(h)          Each
Conveying Party is a limited liability company duly organized, validly existing and in good standing under the laws of the State
of Arizona and has the power and authority necessary to: (i) transact the business in which it is engaged, and, (ii) enter into
this Agreement and each of the other documents and agreements contemplated hereby and, subject to obtaining the consents contemplated
hereby, perform its obligations hereunder (including HL Borrower’s execution, assignment and delivery of the Assignment and
Assumption of Declarant’s Rights and Appointment of Design Review Committee (the LaMerra Property) (the "Assignment
of Declarant’s Rights") attached hereto as Exhibit 3(h);

 

(i)          The
execution, delivery and performance by a Conveying Party of this Agreement (together with all agreements and documents contemplated
hereby) and the consummation of the transactions contemplated herein have been duly authorized and approved in accordance with
its organizational documents. This Agreement, and each document, agreement and instrument executed in connection herewith, is and
shall, constitute the legal, valid and binding obligations each Conveying Party, enforceable against each Conveying Party in accordance
with the terms hereof or their respective terms (as the case may be), except as enforcement may be limited by bankruptcy, insolvency
or other similar laws affecting the rights of creditors generally;

 

(j)          No
consent, approval, authorization, registration, or filing with any governmental or regulatory authority, or any other person or
entity, is required to be made in connection with the execution, delivery and performance of this Agreement by a Conveying Party
or the consummation by it of the transactions contemplated hereby, except with respect to the Contracts identified in Exhibits
1(a)-i through 1(a)-x, the Licenses and Permits identified in Exhibits 1(f)-i through 1(f)-x, and the Leases
identified in Exhibit 1(h), each of which consents, approvals, authorizations, registrations or filings will have
been made or obtained on or before the Closing;

 

(k)          Except
for the consents described in this Agreement and the consents set forth on Exhibits 2(d)(iii)-i, 2(d)(iii)-ii, 2(d)(iii)-iii,
2(d)(iii)-iv, 2(d)(iii)-v, 2(d)(iii)-vi and 2(d)(iii)-vii hereto (except to the extent not applicable because of the termination
of the applicable Lease Interest), the execution and delivery of this Agreement by the Conveying Parties, the compliance with the
terms of this Agreement by them and the consummation of the transactions by them contemplated hereby, do not and will not conflict
with or result in a breach or default under the terms, conditions or provisions of any agreement with a third party to which a
Conveying Party is a party;

 

(l)          Upon
Closing, the Borrower Parties and the Conveying Parties and each of their respective members (as applicable) will benefit from
this Agreement;

 

(m)          Except
as disclosed in Exhibit 3(m), no Conveying Party has received any notice (oral or written) disputing title to the
Property or any part thereof. No Conveying Party has contracted with any person or entity for the purchase of any or all of its
Property. Except as disclosed in Exhibit 3(m), no Conveying Party has any knowledge of any facts by reason of which
possession or title to any or all of its Property may be called into question;

 

(n)          Except
as set forth on Exhibit 3(n), each Conveying Party has filed and paid all required transaction privilege and use
taxes and filed such returns as are required of them with all state and local governments and filed and paid all required employer
tax withholding and employment related charges and contributions;

 

    	16

    	 

    

 

(o)          Amara
does not, directly or indirectly, own any assets properties, or rights of any kind;

 

(p)          All
insurance policies related to the any or all of the Property are in full force and effect and except as set forth on Exhibit
3(p), there are no actual, pending or to a Conveying Party’s actual knowledge, threatened claims with respect thereto;
provided, however, the Noteholders acknowledge that the following insurance policies relating to Spector as required under the
LA Loan and/or the HL Loan are not in effect and have been or are in the process of being terminated with Noteholder’s consent:
Prudential policy numbers L8329846, L8320719 and L8329827;

 

(q)          Except
as disclosed in Exhibit 3(q), there are no direct or indirect transactions with any "Related Parties" involving
the Property or the Conveying Parties. "Related Parties" means an Affiliate of a Conveying Party (including any direct
or indirect equityholder of any such Affiliate), a member of Executive Management, an employee of a Conveying Party or a Family
Member of Executive Management. For purposes hereof, (1) “Executive Management” means each of the following individual:
Albert B. Spector, (2) “Family Member” means, with respect to any individual, such individual’s spouse (or registered
domestic partner) and descendents (by birth or adoption) and such individuals other than immediate family (including parents, stepparents,
siblings, and mothers- and fathers-in- law) and (3) Susannah Durant, Canyon Portal II, Sinagua Plaza, Sedona Culinary aka Canyon
Breeze Restaurant, Tasting Arizona, Open Range Restaurant, SP-LA Art Gallary LLC, Barrett Realty, Rocky Mountain Chocolate, Spector
Offices LLC, and Serenity Spa. “Affiliate” means, with respect to any Person, (i) any other Person who controls, is
controlled by or it under common control with such Person, (ii) any director or officer of such Person or any Person specified
in clause (i) above, or (iii) any other Person in which such Person has a five percent (5%) or more beneficial interest or as to
which such Person serves as a managing member, manager, general partner, trustee or in a similar fiduciary or management capacity.

 

(r)          As
of the Effective Date and as of the Closing, (A) no Conveying Party is (i) currently identified on the Specially Designated Nationals
and Blocked Persons List maintained by the Office of Foreign Assets Control, Department of the Treasury ("OFAC")
and/or on any other similar list maintained by OFAC pursuant to any authorizing statute, executive order or regulation (collectively,
the "List"), and (ii) a person or entity with whom a citizen of the United States is prohibited to engage in transactions
by any trade embargo, economic sanction, or other prohibition of United States law, regulation, or Executive Order of the President
of the United States, (B) none of the funds or other assets or properties of the Conveying Party constitutes property of, or are
beneficially owned, directly or indirectly, by any Embargoed Person (as hereinafter defined), and (C) no Embargoed Person has any
interest of any nature whatsoever in the Conveying Party (whether directly or indirectly). The term "Embargoed Person"
means any person, entity or government subject to trade restrictions under U.S. law, including but not limited to, the International
Emergency Economic Powers Act, 50 U.S.C. §1701 et seq., The Trading with the Enemy Act, 50 U.S.C. App. 1 et seq., and any
Executive Orders or regulations promulgated thereunder.

 

    	17

    	 

    

 

(s)          No
Conveying Party intends for this transaction to be subject to the Interstate Land Sales Full Disclosure Act or the Arizona public
report requirements applicable to sales of subdivided lands.

 

(t)          The
copies of documents delivered and information delivered to Noteholders or Transferee Entities pursuant to this Agreement are materially
true, complete and exact copies of the originals of those documents.

 

(u)          All
tangible, intangible, intellectual and other assets or properties owned by Conveying Parties used or necessary or advisable in
connection with the business of the Property will be conveyed to the Transferee Entities with the consummation of the Closing of
this transaction (except as set forth on Exhibit 3(u).

 

(v)         To
the actual knowledge of the Conveying Parties, all information furnished by or on behalf of Conveying Parties hereunder (including
all information contained in the Exhibits and Schedules hereto or in the other documents and agreements executed in connection
herewith) for purposes of or in connection with this Agreement, the documents executed in connection herewith, or any transaction
contemplated herein or therein is true, complete and omitting to state any fact necessary to make such information (individually
and taken as a whole) not misleading in any material respect at such time in light of the circumstances under which such information
was provided.

 

    	18

    	 

    

 

 (w)         [Intentionally Omitted]

 

(x)          Employment.

 

(i)          Exhibit
3(x)(i) is a correct and complete list of any individuals who are employed full-time or part-time, or otherwise perform
personal services with respect to the Property and include each such individual’s job title, years of employment and compensation,
at the Property and current accrued unused vacation and sick leave of such individuals, as well as a listing of any applicable
employment agreements or personal services contracts for such individuals;

 

(ii)         Except
as set forth on Exhibit 3(x)(ii), no Conveying Party is represented by any labor union, labor organization or other
employee group or association with respect to their employment at the Property, and, to the knowledge of Conveying Parties, there
are no organizing activities, representation proceedings or demands for recognition or certification pending with regard to such
persons;

 

(iii)        Except
as set forth on Exhibit 3(x)(iii), no Conveying Party is a party to, bound by or in the process of negotiating any
collective bargaining agreement, memorandum of understanding or other labor-related contract, arrangement or understanding with
any labor union, labor organization or other employee group or association applicable to persons employed at or performing personal
services at the Property. All employees at the Property are employed at will and there is no severance pay due and owing to any
such employees at termination of employment or transfer to a successor;

 

    	19

    	 

    

 

(iv)        Except
as set forth on Exhibit 3(x)(iv), no Conveying Party is bound by or in the process of negotiating any employee leasing,
shared labor or potential joint or single employer contracts or personal services contracts, arrangements or understandings involving
the Property;

 

(v)         Except
as set forth on Exhibit 3(x)(v), no Conveying Party has experienced or been affected by any strike, boycott, slowdown,
walkout, work stoppage, or lockout within the past six (6) months and there is no such labor action pending or, to Conveying Parties’s
knowledge, threatened against or otherwise affecting any Conveying Parties with respect to employees or personal service providers
at the Property;

 

(vi)        Except
as set forth on Exhibit 3(x)(vi), there are no grievances, demands arbitrations, suits, legal actions, administrative
charges claims or administrative investigations, pending or threatened against the Conveying Parties with respect to the employees
or individuals who perform personal services at the Property;

 

(vii)       The
Conveying Parties and its Affiliates are in compliance with all laws, material agreements, contracts, and policies respecting employment
and employment practices with respect to employees and personal service providers who work or perform services at the Property;

 

Adjustment and Retraining Notification
Act, or any similar state or local law (the "WARN Act")) or a "mass layoff" (as defined in the WARN
Act) involving employees working at the Property in the past year and (ii) as of the Closing Date, none of the employees of Conveying
Parties will have experienced "employment loss" (as defined in the WARN Act) in the prior ninety (90) days prior to the
Closing Date;

 

(ix)         Exhibit
3(x)(ix) contains a true and complete list of each deferred compensation and each incentive compensation, stock purchase,
stock option and other equity compensation plan, program, agreement or arrangement; each severance or termination pay, medical,
surgical, hospitalization, life insurance and other "welfare" plan, fund or program (within the meaning of Section 3(1)
of the Employee Retirement Income Security Act of 1974 (as amended from time to time, "ERISA")); each profit-sharing,
stock bonus or other "pension" plan, fund or program (within the meaning of Section 3(2) of ERISA); each employment,
termination or severance agreement; and each other employee benefit plan, fund, program, agreement or arrangement, in each case,
that is sponsored, maintained or contributed to or required to be contributed to by any Conveying Parties or by any trade or business,
whether or not incorporated (an "ERISA Affiliate"), that together with the Conveying Parties would be deemed a
"single employer" within the meaning of Section 4001(b) of ERISA, or to which the Conveying Parties or an ERISA Affiliate
is party, whether written or oral, for the benefit of any employee of the Conveying Parties (the "Employee Benefit Plans").
Each of the Employee Benefit Plans that is subject to Section 302 or Title IV of ERISA or Section 412 of the Internal Revenue Code
of 1986 (as amended from time to time, the "Code") is hereinafter referred to in this Section 6.1(o) as a "Title
IV Plan." No Conveying Party, nor any ERISA Affiliate has any commitment or formal plan, whether legally binding or not,
to create any additional Employee Benefit Plan or modify or change any existing Employee Benefit Plan;

 

    	20

    	 

    

 

(x)          No
Title IV Plan is a "multiemployer pension plan," as defined in Section 3(37) of ERISA (a "Multiemployer Plan"),
nor is any Title IV Plan a plan described in Section 4063(a) of ERISA. No Conveying Parties nor any ERISA Affiliate has made or
suffered a "complete withdrawal" or a "partial withdrawal," as such terms are respectively defined in Sections
4203 and 4205 of ERISA (or any liability resulting therefrom has been satisfied in full);

 

(xi)         Each
of Conveying Parties’s 401(k) plans and any other Employee Benefit Plans is intended to be and has been determined by the
IRS to be a "qualified" plan under Section 401(a) of the Internal Revenue Code for which a favorable determination letter
or opinion letter has been issued by the IRS and no event has occurred since the issuance of such letter that could reasonably
be expected to adversely affect such qualified status; and

 

(xii)        Each
Employee Benefit Plan has been established and administered in accordance with its terms and in compliance with the applicable
provisions of ERISA, the Code and other applicable laws, rules and regulations and no event has occurred and no condition exists
which would subject the Conveying Parties or its Affiliates (or after the Closing, Transferee Entities or Affiliates) to any liability
by reason of Conveying Parties or its Affiliate’s affiliation with any members of their "Controlled Group" (defined
as any organization which is a member of a controlled group of organizations within liability imposed by ERISA, the Code or other
applicable laws, rules or regulations.

 

The term "actual
knowledge" as used in this Agreement as applicable to the representations and warranties of a Conveying Party means that such
representations and warranties are based solely on the actual (not constructive or imputed) knowledge of Mr. Albert B. Spector,
Jr., as of the applicable date, after reasonable inquiry, including making inquiry of the general managers, the food and beverage
directors and the engineering supervisors of the L’Auberge de Sedona Resort, the Orchards Inn (including the Taos Restaurant),
the LaMerra Property, the Canyon Portal Shopping Center and each Conveying Party.

 

The representations
and warranties in this Section 3 shall survive the Closing for a period of twelve (12) months and thereafter shall terminate.

 

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3.          Warranties
and Representations of Lender Parties.

 

The Lender Parties represent and warrant to the Conveying Parties
as of the Closing Date that:

 

(a)          This
Agreement is executed in mutual good faith among the parties and is given for the express consideration set forth in the Recitals
above and as otherwise set forth herein.

 

(b)          Each
is a limited liability company duly organized, validly existing and in good standing under the laws of the state of its organization
and if applicable, is authorized to transact business in Arizona, and has all power, authority and rights necessary to: (i) transact
the business in which it is engaged, (ii) enter into this Agreement and each of the other documents and agreements contemplated
hereby, and (iii) perform its obligations hereunder.

 

(c)          The
execution, delivery and performance of this Agreement (together with all agreements and documents contemplated hereby) and the
consummation of all transactions contemplated herein and therein have been duly authorized and approved in accordance with its
organizational documents. This Agreement, and each document, agreement and instrument executed in connection herewith, is and shall
constitute their legal, valid and binding obligations enforceable against each in accordance with the terms hereof or their respective
terms, except as may be limited by bankruptcy, insolvency or other similar laws affecting the rights of creditors generally.

 

(d)          Except
as set forth on Exhibit 4(d) hereto or as will have been obtained or made on or before the Closing or such other
date as contemplated hereby, no consent, approval or authorization from, or registration or filing with, any governmental or regulatory
authority or any other person or entity, is required, or to be made by it in connection with the execution, delivery and performance
of this Agreement or the consummation by it of the transactions contemplated.

 

(e)          Except
for the consents required under the First Credit Bank Loan Documents, the consents described in this Agreement and the consents
set forth on Exhibit 4(e) hereto, the compliance with the terms of this Agreement and the consummation of the transactions
contemplated hereby do not and will not conflict with or result in a breach or default under the terms, conditions or provisions
of any agreement to which it is a party or by which it may be bound.

 

(f)          As
of the Effective Date and as of the Closing, (A) Transferee Entities are (i) not currently Control, Department of the Treasury
("OFAC") and/or on any other similar list maintained by OFAC pursuant to any authorizing statute, executive order
or regulation (collectively, the "List"), and (ii) not a person or entity with whom a citizen of the United States
is prohibited to engage in transactions by any trade embargo, economic sanction, or other prohibition of United States law, regulation,
or Executive Order of the President of the United States, (B) none of the funds or other assets of any Transferee Entity constitute
property of, or are beneficially owned, directly or indirectly, by any Buyer Embargoed Person (as hereinafter defined), and (C)
no Embargoed Person has any interest of any nature whatsoever in any Transferee Entity (whether directly or indirectly. The term
"Embargoed Person" means any person, entity or government subject to trade restrictions under U.S. law, including
but not limited to, the International Emergency Economic Powers Act, 50 U.S.C. §1701 et seq., The Trading with the Enemy Act,
50 U.S.C. App. 1 et seq., and any Executive Orders or regulations promulgated thereunder.

 

    	22

    	 

    

 

(g)          Lender
Parties do not intend for this transaction to be subject to the Interstate Land Sales Full Disclosure Act and it is exempt from
the Arizona public report requirements applicable to sales of subdivided lands.

 

The representations and warranties in this
Section 4 shall survive the Closing for a period of twelve (12) months and thereafter shall terminate.

 

4.          Interim
Agreements of Parties.

 

(a)          Except
in the ordinary course of business, as would be in accordance with prior practice over the preceding twelve (12) months, or as
required by law, from the Effective Date through the Closing Date, no Conveying Party will without the reasonable consent of the
Lender Parties (i) enter into, modify or waive material provisions of, or terminate any material agreements relating to Property,
including any Leases or employment agreements, (ii) remove from the Property any material portions of the personal property or
other intangible property being conveyed pursuant to this Agreement, or (iii) materially change the usual business practices and
operation of the Property, including, inventory and supplies levels, maintenance, employment and maintenance of reserves. Additionally,
and without limiting the foregoing, from the Effective Date through the Closing Date, no Conveying Party will, without the reasonable
consent of the Lender Parties, make any payment, disbursement or other expenditure of any nature, except in accordance with the
Approved Budget (as defined in Section 18(a) of this Agreement). Except as provided in Exhibit 5(a), Conveying Parties
(including Spector) confirm that none of the foregoing described in clauses (i) or (ii) of this Section 5(a) has occurred since
January 1, 2011, and none of the foregoing described in clause (iii) of this Section 5(a) has occurred since November 1, 2012.

 

(b)          From
the Effective Date through the Closing Date (or until termination of this Agreement), no Conveying Party (including Spector) shall
file a voluntary petition under Title 11 of the United States Code or an involuntary petition under Title 11 of the United States
Code against any other Conveying Party. If an involuntary petition under Title 11 of the United States Code is filed against any
Conveying Party, such Conveying Party shall promptly, but in no event later than sixty (60) days of the filing thereof, cause the
dismissal of such involuntary petition.

 

5.          As-Is
Transaction.

 

(a)          AS
OF THE EFFECTIVE DATE AND AS OF CLOSING, TRANSFEREE ENTITIES ACKNOWLEDGE AND AGREE THAT, EXCEPT FOR THE EXPRESS REPRESENTATIONS,
WARRANTIES, AND COVENANTS MADE IN THIS AGREEMENT, THEY ARE ACQUIRING THE PROPERTY (INCLUDING ANY PROPERTY INTEREST) AND ANY IMPROVEMENTS
NOW OR HEREAFTER MADE THERETO IN "AS IS" AND "WHERE IS" CONDITION, "WITH ALL FAULTS", AND THAT THE
PROPERTY IS BEING CONVEYED AND TRANSFERRED IN "AS IS" AND "WHERE IS" CONDITION "WITH ALL FAULTS".

 

    	23

    	 

    

 

 

(b)          UPON
CLOSING, EXCEPT FOR THE EXPRESS REPRESENTATIONS, WARRANTIES, AND COVENANTS MADE IN THIS AGREEMENT AND THE OTHER DOCUMENTS AND INSTRUMENTS
EXECUTED IN CONNECTION HEREWITH (INCLUDING THE POST-CLOSING RIGHTS AND REMEDIES OF THE PARTIES UNDER PARAGRAPH 13), EACH PARTY
(ON BEHALF OF ITSELF AND ITS AFFILIATES AND AGENTS) DISCLAIMS AND WAIVES ALL EXPRESS AND IMPLIED WARRANTIES AND ANY AND ALL CLAIMS
OF LIABILITY AGAINST EACH OTHER PARTY AND THEIR RESPECTIVE AFFILIATES AND AGENTS (INCLUDING CLAIMS AGAINST BORROWER PARTIES, CONVEYING
PARTIES AND LENDER PARTIES), ARISING OUT OF OR RELATING TO THE PROPERTY, THE BUSINESS OPERATED THEREON, THE LOANS, AND THE TRANSACTIONS
CONTEMPLATED BY THIS AGREEMENT, WHETHER ARISING IN TORT, CONTRACT, UNDER ANY STATUTE, WARRANTY, STRICT LIABILITY OR OTHERWISE (PROVIDED
THAT NO LENDER PARTY OR ITS AFFILIATES OR AGENTS SHALL BE DEEMED TO HAVE WAIVED ANY CLAIMS RELATED TO ARISING FROM A FRAUD ON SUCH
PERSON).

 

The foregoing releases, waivers and terms
of this Section 6 shall be binding upon the Parties, their successors and assigns and shall survive the Closing.

 

6.          Closing;
Closing Conditions.

 

(a)          The
consummation of the transaction contemplated by this Agreement shall be deemed to close (the "Closing") upon recordation
of the Deeds (defined below) by Escrow Agent. It shall be a Lender Parties’ Condition to Closing (defined below) that Title
Company shall have agreed in writing that, simultaneously with recordation of the Deeds, it will be irrevocably committed to issue
to the applicable Transferee Entities an Owner’s Policy in accordance with the Title Assurance obtained from the Title Company
pursuant to Section 2, including those endorsements (to the extent available under each Owner’s Policy), as agreed
upon in the Title Assurance (the "Title Policy Condition"). Subject to terms of this Agreement, the Closing shall
occur on the date that is twenty (20) days after the Property Verification Deadline or promptly (not to exceed five (5) days) after
the Resolution Period, if applicable (the "Closing Date") or such other time as agreed to by the Parties hereunder,
but in no event shall the Closing occur later than May 20, 2013. The Closing shall occur at the office of Escrow Agent or such
other office as agreed to by the Parties hereunder.

 

(b)          The
obligation of Lender Parties to Close is subject to the satisfaction as of the Closing Date of the conditions (the "Lender
Parties’ Conditions to Closing") that subject to any applicable notice and cure periods: (i) all covenants required
to be performed by any of the Conveying Parties (including Spector) as of Closing Date shall have been performed pursuant to the
terms of this Agreement and the representations and warranties in Section 3 shall be accurate as of the applicable date,
and (ii) the Title Policy Condition shall be satisfied, either of which may be waived, in whole or in part and in their sole and
absolute discretion, by Lender Parties in writing at or prior to the Closing. If the Closing fails to occur on or prior to the
Closing Date because a Lender Parties’ Condition to Closing is not satisfied, then Lender Parties shall elect by written
notice delivered to Borrower Parties on or before 5:00 p.m. (Phoenix, Arizona time) on the business day  immediately
following the Closing Date to (a) waive all unsatisfied Lender Parties’ Condition(s) to Closing and proceed with the Closing
on that date which is three (3) business days after the Closing Date (provided that Conveying Parties also agree in writing to
waive such condition if such condition also is a Borrower-related Parties’ Conditions to Closing), (b) require the applicable
Conveying Party to specifically perform such condition within an applicable grace period (or pursuant to proceedings for equitable
relief) or (c) terminate this Agreement, whereupon this Agreement automatically shall terminate, the Loan Documents will continue
in full force and effect and the parties hereto may pursue their Pre-Agreement Rights and Remedies. If Lender Parties do not deliver
the written notice described in the preceding sentence, then Lender Parties shall be deemed to have elected to terminate pursuant
to option (c). Notwithstanding the foregoing, Lender Parties may enforce their permitted pre-Closing remedies under Section 13
if the failure of the condition is also a default by a Conveying Party.

 

    	24

    	 

    

 

(c)          The
obligation of Conveying Parties to Close is subject to the satisfaction as of the Closing Date of the conditions (the "Borrower-related
Parties’ Conditions to Closing") that subject to any applicable notice and cure periods: (i) all covenants required
to be performed by Lender Parties as of the Closing Date shall have been performed pursuant to the terms of this Agreement and
the representations and warranties in Section 4 shall be accurate as of the such date; and (ii) the First Credit Bank Extension,
Consent, Release and Novation has been obtained any of which Borrower-related Parties’ Conditions to Closing may be waived
in whole or in part by Conveying Parties, as applicable, in writing at or prior to the Closing. If the Closing fails to occur on
or prior to the Closing Date because a Borrower-related Parties’ Conditions to Closing is not satisfied, then Conveying Parties
shall elect by written notice delivered to Lender Parties on or before 5:00 p.m. (Phoenix, Arizona time) on the business day immediately
following the Closing Date to either (a) waive all unsatisfied Borrower’s Condition(s) to Closing and proceed with the Closing
on that date which is three (3) business days after the Closing Date, or (b) terminate this Agreement, whereupon this Agreement
automatically shall terminate, the Loan Documents will continue in full force and effect and the parties hereto may pursue their
Pre-Agreement Rights and Remedies. If Conveying Parties do not deliver the written notice described in the preceding sentence,
then they shall be deemed to have elected to terminate pursuant to option (b).

 

7.          Conveyance
and Closing Documents. On or before the Closing Date (or within the timeframes otherwise provided below), (i) the applicable
Conveying Parties, shall execute, have acknowledged where applicable, and deliver to Escrow Agent (or Lender Parties, as mutually
agreed by the parties), and (ii) the applicable Lender Parties shall execute, have acknowledged where applicable, and deliver to
Escrow Agent (or Conveying Parties, as mutually agreed by the parties), the following instruments, payments and other deliveries,
to be dated as of the Closing Date (where appropriate) (collectively, the "Closing Documents"):

 

(a)          Special
Warranty Deeds in the forms attached hereto and incorporated herein as Exhibits 8(a)-i through 8(a)-iii for
conveying the LaMerra Property to HL Newco and the L’Auberge Property and the Orchards Inn Property to Orchards Newco (the
"Deeds");

 

    	25

    	 

    

 

(b)          Bill
of Sale and Assignment and Assumption of Scheduled Assumed Liabilities (which shall include all cash, accounts, receivables, and
intellectual property, subject to  the terms of this Agreement) in the forms attached hereto and incorporated herein
as Exhibits 8(b)-i through 8(b)-iv (collectively, the "Bills of Sale") which are intended to be
an acceptance of collateral in full and complete satisfaction of an obligation pursuant to the Uniform Commercial Code with the
consent of the debtors and other necessary parties;

 

(c)          The
Estoppel Certificates in the form of Exhibits 8(c)-i through 8(c)-iii"(the "Estoppel Certificates");

 

(d)          The
Assignment of Declarant’s Rights and a quit-claim assignment of any other right, title and interest in or related, directly
or indirectly, to the LaMerra property;

 

(e)          The
Assignment of Leases in the forms attached hereto and incorporated herein as Exhibits 2(d)iii- A through 2(d)(iii)-B
(collectively, the "Assignments of Leases"), unless the Transferee Entities have elected to terminate the
applicable Lease Interest;

 

(f)           The
Consents to Assignment of Leases;

 

(g)          The
Assignment and Assumption of the L’Auberge de Sedona, LLC Assets and Scheduled Assumed Liabilities in the form of Exhibit
8(g);

 

(h)          The
Assignment and Assumption of the Orchards Inn Assets and Scheduled Assumed Liabilities in the form of Exhibit 8(h);

 

(i)           Assignment
and Assumptions of the assets and Scheduled Assumed Liabilities of HL Borrower, Orchards Annex, Taos Cantina and LA Spa, each in
substantially the form of Exhibit 8(h);

 

(j)           Intentionally
Omitted;

 

(k) Intentionally Omitted;

 

(l) Intentionally Omitted;

 

(m)          The
Third Party Consents obtained pursuant to Section 2;

 

(n)          Intentionally
Omitted;

 

(o)          The
HL Loan Satisfaction and Release and the LA Loan Satisfaction and Release in the forms of Exhibits 8(o)-i and 8(o)-ii,
respectively, attached hereto and all documents contemplated thereunder, pursuant to which, among other terms, all guaranties shall
be deposited with the Escrow agent and contemporaneously with the Closing shall be marked "terminated" by the Escrow
Agent and shall be returned to Borrowers; provided, however, that with respect to that certain Unconditional Loan Guaranty dated
June 11, 2007, by Spector and Gechman in favor of IMH Secured Loan Fund, LLC, there shall be no release of Gechman. Notwithstanding
the foregoing, HL Noteholder may retain any rights it may have under the HIDC pledge of its 20.825% interest in Canyon Portal (the
“HIDC Interest”) and the related HIDC HL SOS UCC, and may pursue its rights thereunder to become a non- managing
member of Canyon Portal.

 

    	26

    	 

    

 

(p)          A
quit-claim assignment of the Noble House Letter in the form of Exhibit 8(p) attached hereto;

 

(q)          Forms
to be filed with the Arizona Department of Water Resources pertaining to the transfer of the LaMerra Water Rights, the L’Auberge
Water Rights, and the Orchards Inn Water Rights in the forms attached here to as Exhibit 8(q)-i through 8(q)-v, and
such documents, instruments or other forms reasonably necessary to transfer all rights to and control of the Retreat on Oak Creek
Domestic Water Improvement District (the “DWID”), including, without limitation, written resignations from each
of the board members of the DWID existing as of the Closing Date and such other documents as is reasonably necessary to appoint
replacement board members selected by the Transferees, in their sole and absolute discretion;

 

(r)          Transferee
Entities’ payments required to be paid under this Agreement, including: (i) a cash payment to Spector or his designee in
the amount of $200,000 (the "Spector Payment") payable on the Closing Date, subject to potential offset pursuant
to the Adjusted Settlement Protocol, (ii) a cash payment in the amount of $400,000 to Orchards Annex (the "Orchards Annex
Payment"), subject to potential offset pursuant to the Adjusted Settlement Protocol on the sixtieth (60th) day following
the Closing Date, and (iii) the Avion Payment (defined below).

 

(s)          The
Avion Noble House Letter (as defined below).

 

(t) Intentionally Omitted;

 

(u)          Such
other funds, instruments or documents as are reasonably necessary to fulfill the covenants and obligations to be performed pursuant
to this Agreement. All funds to be deposited hereunder shall be in the form of cash, wire transfer or other good and sufficient
funds immediately available in Flagstaff, Arizona. All funds necessary to pay any amounts due under this Agreement at the Closing,
shall be deposited into Escrow by the applicable party hereto at least one (1) business day prior to the Closing Date;

 

On the date of Closing: (i) Escrow Agent
shall conduct the Closing, record the applicable Closing Documents and deliver to Conveying Parties and Lender Parties the applicable
Closing Documents and (ii) the Lender Parties and Conveying Parties, as applicable, shall take such actions, in the manner described
in the "Day of Closing Protocol" attached hereto as Exhibit 8(u). All conveyances contemplated hereby must
occur concurrently and no portion of this transaction shall close without all conveyances and transactions contemplated hereby
occurring concurrently therewith. Upon Closing, Conveying Parties shall provide possession of the Property to Transferee Entities,
subject to the terms contained in the Closing Documents.

 

In
accordance with Section 18(c), from and after the Closing, the Transferee Entities shall be responsible for all employee
payroll accruing from and after the Closing Date of the employees of L'Auberge de Sedona, LLC, Orchards Inn which are
operating the L'Auberge de Sedona Resort and the Orchards Inn. With respect to employees of Barrett providing services to the
L’Auberge de Sedona Resort and Orchards Inn, the Transferee Entities shall provide written notice to the Conveying
Parties on or prior to the expiration of the Property Verification Period of which, if any, of such employees the
Transferee Entities elect, in their sole and absolute discretion, to employ following the Closing.

 

    	27

    	 

    

 

8.          Employees.

 

(a)          Transferee
Entities shall have the right to offer employment to any or all of the employees L’Auberge de Sedona, LLC and Orchards Inn
following the Closing. The Transferee Entities shall notify the Conveying Parties at before the Closing of any such employees that
the Transferee Entities elect to not offer employment and the Conveying Parties shall notify such employees thereof; provided
that Transferee Entities shall provide no less than sixty (60) days of severance pay to such employees in consideration for the
continued performance by such employees of their duties for such severance period. Each of the Conveying Parties shall cooperate
(without cost or liability) with the Transferee Entities by providing work-related information regarding its employees at the Property
to the extent permitted by law, in connection with the Transferee Entities determination of which employees to extend offers of
employment.

 

(b)          Transferee
Entities acknowledge and agree that Transferee Entities (or the applicable employee leasing or other organization) shall be considered
for purposes of the WARN Act to be the employer of such employees of Conveying Parties who are offered and accept employment with
Transferee Entities as of the expiration of the Post Closing Period (the "Retained Employees").

 

(c)          Provided
the Conveying Parties’ employees do not experience any employment losses as defined in WARN within 90 days prior to Closing,
the Transferee Entities agree that (i) they will not take any actions within 60 days on or after the Closing Date that results
in an "employment loss," as that term is defined under the WARN Act, for more than 49 of the full-time Retained Employees;
or (ii) should Transferee Entities do so, Transferee Entities shall indemnify, defend, protect, and hold harmless Conveying Parties
and all their affiliates from any and all losses and liability resulting from any compliance obligation (including any obligation
to give notice or pay money or benefits) Transferee Entities or any of its affiliates has or may have under the WARN Act arising
from Transferee Entities’ actions within 60 days after the Closing Date that result in an "employment loss," as
that term is defined under the WARN Act, for more than 49 of the full-time Retained Employees.

 

(d)          Conveying
Parties and Transferee Entities each shall be responsible for its own notification obligations, if any, under the WARN Act, including
any notification obligations that may arise from any employment loss by any employees who were employed by Conveying Parties as
of the Closing Date or any Retained Employees employed by Transferee Entities following the Closing Date.

 

(e)          Conveying
Parties and Transferee Entities intend that the transactions contemplated by this Agreement should not constitute a
separation, termination or severance of employment of any Retained Employee who accepts an employment offer by Transferee
Entities that is consistent with the requirements of Section 9(a) including any separation, termination or severance
benefits, and that each such Retained Employee will have continuous employment immediately before and immediately after the
Closing Date. Transferee Entities shall be liable for and shall indemnify, hold harmless, protect and defend the
Conveying Parties for, from and against: (i) any statutory, common law, contractual or other severance, if any, with respect
to any Retained Employees arising out of employment by the applicable Transferee Entities on and after Closing Date. The
Conveying Parties shall be liable for and shall indemnify, hold harmless, protect and defend the Transferee Entities for,
from and against (i) any statutory, common law, contractual or other severance, obligations, liabilities or claims, if any,
with respect to any employees of, or individuals performing personal services for, any of the Conveying Parties prior to
Closing Date.

 

    	28

    	 

    

 

9.          Indemnities.

 

The foregoing indemnities shall survive
the Closing and shall not terminate. Each of the Conveying Parties (including Spector), jointly and severally, shall pay, indemnify,
defend and hold the Lender Parties, harmless from and against, any loss, claim, liability, expense, or other damage attributable
to Taxes of a Conveying Party or related to the Property with respect to any Tax year or portion thereof ending on or before the
Closing, or for any Tax year beginning before and ending after the Closing to the extent allocable to the portion of such period
beginning before and ending on the Closing Date; or any liability arising on or before Closing of a Conveying Party attributable
to the unpaid Taxes of any Person under Reg. §1.1502-6 (or any similar provision of state, local, or non-U.S. law), as a transferee
or successor, by contract, or otherwise.

 

The foregoing indemnity shall survive the
Closing.

 

For purposes of this Section 10(b),
‘‘Tax’’ or ‘‘Taxes’’ means any federal, state, or local income, gross receipts,
license, payroll, employment, excise, severance, stamp, occupation, premium, windfall profits, environmental (including taxes under
Code §59A), customs duties, capital stock, franchise, profits, withholding, social security (or similar), unemployment, disability,
real property, personal property, sales, use, transaction privilege, transfer, registration, value added, alternative or add-on
minimum, estimated, or other tax of any kind whatsoever, whether computed on a separate or consolidated, unitary or combined basis
or in any other manner, including any interest, penalty, or addition thereto, whether disputed or not.

 

10.         Release
of Released Lender Parties. Upon the Closing, and on the condition that the Closing occurs, without limiting any other exculpatory,
indemnification, or other rights, powers, privileges or remedies of the Released Lender Parties (defined below), each of the Conveying
Parties (including, without limitation, Spector) (the "Borrower Releasing Parties"), on behalf of themselves
and their heirs, successors, and assigns, hereby release and discharge all claims, demands, causes of action, counterclaims, defenses
and offsets against Lender Parties, their current and prior subsidiaries, affiliates, attorneys, directors, officers, shareholders,
members, partners, trusts, employees, agents, advisors, consultants, servicers, lenders, and any other person, corporation or
entity that might be claimed to be liable on their behalf (the "Released Lender Parties") and do hereby release,
acquit and forever discharge the Released Lender Parties from any and all debts, obligations, promises, agreements, covenants,
contracts, controversies, suits, actions, guaranties, warranties, representations, causes of action, judgments, executions, claims
and demands, damages of any kind, liability and costs of every kind and character in law or in equity, known or unknown, that
Borrower Releasing Parties have or hereinafter can, shall or may have against the Released Lender Parties for, upon or by reason
of any matter, cause, or thing whatsoever, whether vested or contingent, accrued or unaccrued, suspected or claimed, that any
of the Borrower Releasing Parties have heretofore had and asserted or could have asserted or which they may hereafter have or
assert against the Released Lender Parties for, upon or by reason of any matter, cause, or thing whatsoever (other than fraud),
which has occurred or arisen at any time prior to the Closing, related to or arising out of any act or omission of any of the
Released Lender Parties in connection with the Loan Documents or the Loans evidenced and secured thereby (the "Released
Lender Liabilities"). Each Borrower Releasing Party covenants not to sue any of the Released Lender Parties with respect
to the Released Lender Liabilities. Each Borrower Releasing Party represents and warrants that it has not heretofore assigned
or transferred or purported to have assigned or transferred to any person, firm, corporation or any other entity any of the matters
described in the release set forth herein. Each Borrower Releasing Party acknowledges that there is a risk that, subsequent to
the release contemplated hereby, the Borrower Releasing Party may discover, incur, or suffer claims that were unknown to that
Borrower Releasing Party or unanticipated at the time of signing of this Agreement or the Closing, including, without limitation,
unknown or unanticipated claims that, had they been known, may have materially affected the decision to provide the release contemplated
hereby. Nothing in this Section is intended to limit Borrower Releasing Parties’ rights to pursue any remedies available
under this Agreement or under any document or agreement entered into or delivered pursuant to this Agreement for any obligation
or liability of the Lender Parties which, by its terms, survives the Closing or the earlier termination of this Agreement. This
Section 11 shall survive the Closing and shall not terminate.

 

    	29

    	 

    

 

11.         Release
of Released Borrower Parties . Upon the Closing, and on the condition that the Closing occurs, each of the Lender Parties
on behalf of themselves and their heirs, successors, assigns and affiliates, hereby release and discharge all claims, demands,
causes of action, liabilities, counterclaims, defenses and offsets against Borrower Parties, other than Gechman, and their current
and prior subsidiaries, affiliates, advisors, consultants, attorneys, officers, employees, agents, directors, officers, shareholders,
members, partners, trusts, employees, and any other person, corporation or entity that might be claimed to be liable on their
behalf, other than Gechman, (collectively, the "Released Borrower Parties") and do hereby release, acquit and
forever discharge the Released Borrower Parties from any and all debts, obligations, promises, agreements, covenants, contracts,
controversies, suits, actions, guaranties, warranties, representations, causes of action, judgments, executions, claims and demands,
damages of any kind, liability and costs of every kind and character in law or in equity, known or unknown, that Lender Parties
have or hereinafter can, shall or may have against the Released Borrower Parties for, upon or by reason of any matter, cause,
or thing whatsoever, whether vested or contingent, accrued or unaccrued, suspected or claimed, that any of the Lender Parties
have heretofore had and asserted or could have asserted or which they may hereafter have or assert against the Released Borrower
Parties for, upon or by reason of any matter, cause, or thing whatsoever (other than fraud), which has occurred or arisen at any
time prior to the Closing, arising out of or relating to the Loans and/or the Loan Documents, and Lender Parties acknowledge that
upon Closing the Released Borrower Parties shall have no further liability or obligation whatsoever arising out of or relating
to the Loans and/or the Loan Documents (collectively, the "Released Borrower Liabilities"). Each Lender Party
covenants not to sue any of the Released Borrower Parties with respect to the Released Borrower Liabilities. Each Lender Party
represents and warrants that it holds all applicable rights necessary to validly release the matters set forth herein. Each Lender
Party acknowledges that there is a risk that, subsequent to  the release contemplated hereby, the Lender Party may
discover, incur, or suffer claims that were unknown to that Lender Party or unanticipated at the time of signing of this Agreement
or the Closing, including, without limitation, unknown or unanticipated claims that, had they been known, may have materially
affected the decision to provide the release contemplated hereby. This Section 12 shall survive the Closing and shall not
terminate. Nothing in this Section is intended to limit Lender Parties’ rights to pursue the post-Closing remedies described
in this Agreement, any remedies available under this Agreement or under any document or agreement entered into or delivered pursuant
to this Agreement for a failure to perform thereunder, or for any obligation or liability which, by its terms, survives the Closing
or the earlier termination of this Agreement, or to pursue Gechman and or any individual, corporation, association, partnership,
limited liability company, trust, joint venture, business trust or unincorporated organization or other entity or organization
that might be claimed to be liable on Gechman’s behalf.

 

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12.         Remedies.

 

(a)          Pre-Closing
Remedies:

 

If on or before Closing
and prior to the Property Verification Deadline (and prior to expiration of the Resolution Period, if applicable), a party hereto
(the "Defaulting Party") breaches any of the terms or provisions of this Agreement including any representation
or warranty, or otherwise defaults hereunder, and fails to cure such breach or default within ten (10) days following written notice
thereof given by another party hereto (the "Non-defaulting Party"), the Non-defaulting Party may terminate this
Agreement by written notice to the other Parties, whereupon no party hereto shall thereafter have any further liability or obligation
to complete the transaction under this Agreement, and the Parties shall have their Pre-Agreement Rights and Remedies.

 

If, on or before Closing
and after the Property Verification Deadline (and after expiration of the Resolution Period, if applicable), and provided that
this Agreement has not terminated pursuant to Section 2, a Defaulting Party breaches any of the terms or provisions of this
Agreement including any representation or warranty, or otherwise defaults hereunder, and fails to cure such breach or default within
ten (10) days following written notice thereof given by the Non-defaulting Party, the Non-defaulting Party may either: (i) terminate
this Agreement by written notice to the other Parties on or before five (5) days after the expiration of the 10-day cure period,
whereupon no party hereto shall thereafter have any further liability or obligation to complete the transactions under this Agreement,
and the Parties shall have their Pre-Agreement Rights and Remedies; (ii) waive such default and consummate the transaction contemplated
hereby in accordance with the terms hereof, as agreed upon in writing between the Parties during the Resolution Period, if applicable,
or pursuant to the Adjusted Settlement Protocol (defined below) if agreed upon between the Parties during the Resolution Period;
or (iii) institute proceedings necessary to specifically enforce the terms hereof, as agreed upon in writing between the Parties
during the Resolution Period, if applicable, or pursuant to the Adjusted Settlement Protocol if agreed upon between the Parties
during the Resolution Period.

 

For purposes hereof, "Excluded Items"
collectively means all of the following costs, expenses and items:

 

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(i)          $1,670,955
in respect of excess interest, points and closing costs paid to FCB by Borrower Parties through the Maturity Date of the Loans,
but not offset under the Loans,

 

(ii)         amounts
properly and reasonably reserved and actually paid by the Borrower Parties in respect of capital expenditures, but not in amounts
greater than: (1) four percent (4.0%) of revenues per year for the Orchards Inn Property, and (2) for the L’Auberge Property,
(A) two percent (2.0%) of revenues per year for the years 2008 through 2011, and (B) four percent (4.0%) of revenues per year thereafter,
and

 

(iii)        amounts
properly and reasonably applied from operating cash flow, as follows: (1) $1,440,861 to the payment of certain vendor notes and
other payables, including, without limitation, payments with respect to: (a) the Tiffany Construction note, (b) the Shamrock Food
Service notes, and (c) amounts payable to Dibble Construction, Azadi Rugs, and KHI Design, (2) Payments totaling $67,460 for spa
renovation, and (3) Payments totaling $149,170 for the pool area, including landscaping, fencing, pool bathrooms and workout room.

 

The following modifications
to the closing payment obligations shall apply at Closing (the "Adjusted Settlement Protocol"):

 

Except
for the Excluded Items (for which Conveying Parties shall have no liability), the Conveying Parties shall be jointly and
severally liable for any and all (i) liabilities relating to the Property arising prior to Closing that are not Scheduled
Assumed Liabilities, (ii) defaults or breaches of any representations, warranties, covenants, indemnifications or other
obligations (whether express or implied) hereunder or under any document or instrument executed or delivered in connection
herewith, (iii) any advances made by a Lender Party to protect any or all of the Property from any liabilities or to preserve
the value of the Property or to satisfy any obligations of the Conveying Parties, including without limitation, the FCB
Payments and/or the FCB Tax Payments and (iv) reasonable attorney’s fee incurred by a Lender Party in connection with
the enforcement of this Agreement; provided Conveying Parties shall only be responsible pursuant to this Section 13(a)
for such items if such costs, expenses, damages, liabilities and attorneys’ fees in the aggregate exceed One Million
Dollars ($1,000,000) (the "Pre-Closing Deductible Threshold"). After reaching the Pre-Closing Deducible
Threshold, the Lender Parties shall have the right to offset (subject to the limitations contained herein) the amounts of
such unpaid costs and expenses in excess of the Pre- Closing Deductible Threshold against first, the Spector Payment and/or
the Orchards Annex Payment, and second, against any other amounts owing to a Conveying Party by a Lender Party payable upon
Closing. If after reaching the Pre-Closing Deductible Threshold, and after giving effect to any offsets pursuant to the
immediately preceding sentence, there remain liabilities owing to the Lender Parties pursuant to this Section 13(a),
the Conveying Parties agree to pay to the Lender Parties such amounts but in no event shall such payments exceed One Million
Dollars ($1,000,000). Notwithstanding anything to the contrary contained in this paragraph, in no event shall Conveying
Parties (collectively) be responsible to pay more than $1,000,000, plus the amount of any offsets. The Pre-Closing
Deductible Threshold and Excluded  Items are only offsets that shall be applied against liabilities owing to the Lender
Parties and in no event shall the foregoing be interpreted to require that any of the Lender Parties pay or disburse to any
of Spector or a Conveying Party all or any of the Pre-Closing Deductible Threshold or Excluded Items. The Pre-Closing
Deductible Threshold and the "cap" shall be applied collectively to each of the Conveying Parties; provided that
neither the Pre-Closing Deductible Threshold nor the "cap" shall apply in the event of a fraud by any Conveying
Party (including a good faith and reasonable allegation of fraud by a Lender Party against any Conveying Party).

 

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(b)          Lender
Parties Post-Closing Remedy.

 

Upon Closing and provided
that Closing occurs, except for the Excluded Items (as defined in Section 13(a)) (for which Conveying Parties shall have
no liability), the Conveying Parties shall be jointly and severally liable for (i) any and all liabilities relating to the Property
arising prior to Closing that are not Scheduled Assumed Liabilities, (ii) defaults or breaches of any representations, warranties,
covenants, indemnifications or other obligations (whether express or implied) hereunder or under any document or instrument executed
or delivered in connection herewith, (iii) any advances made by a Lender Party to protect any or all of the Property from any liabilities
or to preserve the value of the Property or to satisfy any obligations of the Conveying Parties and (iv) reasonable attorney’s
fee incurred by a Lender Party in connection with the enforcement of this Agreement; provided that Conveying Parties shall only
be responsible pursuant to this Section 13(b) for such items if such costs, expenses, damages, liabilities and attorneys’
fees in the aggregate exceed One Million Dollars ($1,000,000) (the "Post-Closing Deductible Threshold"). After
reaching the Post-Closing Deducible Threshold, the Lender Parties shall have the right to offset (subject to the limitations contained
herein) the amounts in excess of Post-Closing Deductible Threshold against first, the Spector Noble House Payment, the Spector
Payment and/or the Orchards Annex Payment and, second, against any other amounts owing to a Conveying Party by a Lender Party under
this Agreement. If after reaching the Post-Closing Deductible Threshold, and after giving effect to all offsets pursuant to the
immediately preceding sentence, there remain liabilities owing to the Lender Parties pursuant to this Section 13(b), Conveying
Parties agree to pay to the Lender Parties such amounts, but in no event shall the payment obligation exceed One Million Dollars
($1,000,000). Notwithstanding anything to the contrary contained in this paragraph, in no event shall Conveying Parties (collectively)
be responsible to pay more than $1,000,000, plus the amount of any offsets, including pursuant to this Section 13(b). The
Post-Closing Deductible Threshold and the "cap" shall be applied collectively to the Conveying Parties; provided that
neither the Post-Closing Deductible Threshold nor the "cap" shall apply in the event of a fraud by any Conveying Party
(including a good faith and reasonable allegation of fraud by a Lender Party against any Conveying Party). The Post-Closing Deductible
Threshold and Excluded Items are only offsets that may be applied against liabilities owing to the Lender Parties and in no event
shall the foregoing be interpreted to require that any of the Lender Parties pay or disburse to any of Spector or a Conveying Party
all or any of the Post-Closing Deductible Threshold or Excluded Items. The foregoing obligations contained in this Section 13(b)
of Conveying Parties shall survive the Closing for a period of twelve (12) months and then shall terminate.

 

(c)          Notwithstanding
anything contained to the contrary in this Agreement or any Closing document, no party hereto shall be entitled to any incidental,
consequential, speculative or punitive damages resulting from a Defaulting Party’s breach.

 

13.         Attorneys’
Fees. If any party commences any litigation or other legal proceedings against the another party for a default hereunder or
to enforce the provisions hereof, the prevailing party in any such proceeding shall be entitled to recover its costs and expenses,
including reasonable attorneys’ fees and expert witness fees, with attorneys’ fees to be determined by the court and
not a jury in any such litigation.

 

14.         Jurisdiction
and Venue. Any action or proceeding pursuant to this Agreement shall be brought in an Arizona state or federal court of competent
jurisdiction with venue in Maricopa County, Arizona.

 

15.         Brokerage.
Each party warrants and represents to the other that no real estate sales or brokerage commissions or like commissions are or may
be due in connection with this transaction. Each party agrees to indemnify, defend (with legal counsel reasonably acceptable to
the indemnitee) and hold harmless the other party for, from and against any claims by third parties made by or through the acts
of such party, for real estate or brokerage commissions, or a finder’s fee, arising out of or relating to the transactions
provided herein, and all costs and expenses incurred by the indemnitee in connection therewith including, but not limited to, reasonable
attorneys’ fees. Spector and Conveying Parties hereby disclose to Lender Parties that certain Spector and/or certain employees,
representatives or affiliates of Spector are licensed real estate brokers or licensees but are not receiving a commission in connection
with this transaction as a result thereof.

 

16.         WAIVER
OF JURY TRIAL. EACH PARTY HEREUNDER ON BEHALF OF THEMSELVES AND THEIR AFFILIATES WAIVES ANY RIGHT TO A TRIAL BY JURY IN
ANY ACTION OR PROCEEDING TO ENFORCE OR DEFEND ANY RIGHTS UNDER THIS AGREEMENT OR RELATING THERETO AND AGREE THAT ANY SUCH ACTION
OR PROCEEDING SHALL BE TRIED BEFORE A COURT AND NOT BEFORE A JURY.

 

17.         Transaction
Costs; Operating Accounts; Transition.

 

(a)          Subject
to the Approved Budget attached hereto as Exhibit 18(a) (the “Approved Budget”), which Approved
Budget incorporates the November, 2012 operating statements and balance sheets, from the Effective Date to the Closing Date, Conveying
Parties shall use commercially reasonable efforts to operate the Property in accordance with prior practices over the preceding
twelve (12) months, including paying any and all accounts payable and other expenses in accordance with the Approved Budget.

 

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(b)          The
Approved Budget contains, among other information, an estimate of expenses to be incurred and revenue to be received on or before
the Closing Date, and a list of payables owing by the Conveying Parties but which have not been paid. For purposes hereof, "accounts
payable" shall include all expenses on the list of payables attached to the Approved Budget owing by the Conveying Parties
incurred by the applicable Conveying Party in accordance with the Approved Budget, including payroll obligations and all other
costs and expenses arising out of or relating to the Property, including all costs of ownership, operation (including employee
payroll accruing after the Closing Date), construction, maintenance, repair and replacement. The Approved Budget shall be updated
from time to time by Conveying Parties as reasonably requested by Lender Parties to reflect historical operations and estimated
revenues and expenses through the Closing Date, as well as to update the list of accounts payable which remain unpaid. Commencing
on the fifth day prior to the Closing Date, Conveying Parties shall update the Approved Budget (including the accounts payable
list) on a daily basis and deliver a copy thereof to Lender Parties for Lender Parties’ approval, which approval shall not
be unreasonably withheld or delayed. The accounts payable list set forth in the Approved Budget prepared by Conveying Parties on
the day prior to the Closing and approved in writing by the Lender Parties, together with those certain costs and expenses arising
out of or relating to the Property and the period prior to the Closing, in each case to the extent set forth in the updated Approved
Budget approved by the Lender Parties in writing, are collectively referred to herein as the “Scheduled Assumed Liabilities.”
The Lender Parties acknowledge and agree that the Scheduled Assumed Liabilities will include, without limitation, the following
amounts: (i) $75,000 for payment to Squire Sanders & Dempsey; (ii) $124,000 for paid time off due and payable to employees
of the Property; (iii) $170,000 for a payment due to the Arizona Department of Revenue on May 20, 2013; and (iv) $100,000 for a
payment due to RDS. All costs and expenses whatsoever arising out of or relating to the Property, related to the period after the
Closing, including all costs of ownership, operation, construction, maintenance, repair and replacement shall be the responsibility
of the Transferee Entities.

 

(c)          At
the Closing, all Scheduled Assumed Liabilities shall, at the Transferee Entities’ election, in their reasonable discretion,
either be paid in full through escrow from: (i) “ Available Cash”, which is defined as the sum of: (A) cash
in the operating accounts of the applicable Conveying Party; and (B) except as set forth below, credit card receivables held by
the applicable Conveying Party (net of credit card processing costs), or (ii) in the case of recurring trade payables and other
obligations with extended payment arrangements in place, such payables and obligations will be assumed and paid in due course by
the Transferee Entities from Available Cash). Notwithstanding the foregoing, the Adjusted Settlement Protocol shall apply to any
amounts credited to Available Cash from credit card receivables held by the Conveying Parties which have not been received in cash
by the Transferee Entities on or prior to the sixtieth (60th) day following the Closing.

 

(d)          Upon
Closing, the Transferee Entities shall pay through escrow the following costs, but only to the extent such costs are included in
the Scheduled Assumed Liabilities: transaction costs and costs of Closing of this transaction, escrow fees, title insurance premiums
and endorsement costs and recording costs. Lender Parties shall be responsible for all costs and expenses incurred by or on behalf
of Lender Parties in connection with this Agreement, including its legal expenses, unless a Closing does not occur, in which case
Conveying Parties shall jointly and severally reimburse Lender Parties for all costs and expenses incurred by a Lender Party in
connection with this Agreement (including the legal fees and expenses of a Lender Party). Subject to the terms of the Adjusted
Settlement Protocol, Conveying Parties shall be responsible for all other fees, costs and expenses.

 

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(e)          At
Closing (and as an expense paid through escrow) Transferee Entities shall pay to Avion Holdings, LLC $375,000 (without duplication
of any amounts paid in respect thereof by any Person) toward the payment (the "Avion Payment") payable to Avion
pursuant to that certain Retention Agreement dated May 17, 2011, a copy of which has been delivered to Lender Parties.

 

(f)          Subject
to the terms of the Adjusted Settlement Protocol, on the Closing Date, Transferee Entities shall pay the Spector Payment and on
the sixtieth (60th) day following the Closing Date, the Transferee Entities shall pay the Orchards Annex Payment.

 

(g)          Upon
the Closing, all accounts receivable, deposits and other such amounts due or owing to, or held by or on behalf of Conveying Parties
(including with respect to credit cards) and any other rights, claims, entitlements of the Conveying Parties related to the Property
will be assigned to Transferee Entities.

 

(h)          Upon
Closing and payment of the Scheduled Assumed Liabilities and other costs from the operating accounts of the Conveying Entities
through escrow, or assumption of the Scheduled Assumed Liabilities, as provided herein, all cash in the Conveying Parties’
bank accounts, if any, will be transferred to Transferee Entities through escrow at Closing.

 

(i)          Upon
Closing, there will be customary prorations of real and personal property taxes, assessments liens or other encumbrances, transaction
privilege taxes, bed taxes and sales taxes. The Adjusted Settlement Protocol shall apply to this item at Closing.

 

(j)          Upon
the Closing, Conveying Parties’ utility and any other Property related deposits for the Property, if any, shall be assigned
to the Transferee Entities.

 

(k)          On
the third business day prior to the Closing Date, an updated accounting of all room and event deposits received by the Conveying
Parties shall be provided to the Transferee Entities for review verification and approval.

 

(l)          On
and as of the Closing, all claims of Conveying Parties and amounts owed to Conveying Parties, whether liquidated, in dispute or
yet to be determined, relating to real property or personal property tax refunds will be transferred (without recourse) to Transferee
Entities on and as of the Closing. In order to remove any doubt, it is understood that all such claims, amounts owed and claims
for real property and personal property tax refunds will be owned by the Transferee Entities regardless of whether related to periods
or events prior to and/or after the Closing.

 

(m)         There
will be a customary pro-ration of expenses arising out of or relating to the ownership, operation, maintenance, repair or replacement
of the Property or the businesses operated thereon (including, but not limited to, charges for electricity, gas, water, sewer,
CATV or any other utility services furnished to the Property or any charges under utility service contracts) at Closing, and the
obligation for all such items applicable to the period after the Closing shall be paid by the Transferee Entities and the obligation
for all such items applicable to the period prior to Closing shall be paid by the Conveying Parties; provided, however that any
amounts relating to the items described in this subsection that are Scheduled Assumed Liabilities shall be paid by the Transferee
Entities. The Adjusted Settlement Protocol shall apply to this item at Closing.

 

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(n)          During
the ninety (90) day period following the Closing Date, any discrepancies that were outstanding as of the Closing Date, disclosed
by a Conveying Party on or before the Closing Date and that were not reconciled shall be reconciled. During the twelve (12) month
period following the Closing Date, the Lender Parties shall have the right to notify the Conveying Parties of any discrepancies
(including undisclosed liabilities, improperly disclosed liabilities or discrepancies that were not reconciled) that were outstanding
as of the Closing Date and, without limiting any other rights, remedies, powers and privileges that may be available to the Lender
Parties.

 

(o)          The
voting trust agreement (the "Voting Trust Agreement") shall be in the form attached hereto as Exhibit 18(o)
and will be delivered on the Effective Date. The Transferee Entities shall pay the costs of establishing the voting trust and
ordinary fees and expenses related to the maintenance and operation of the voting trust. On the Effective Date, all of the equity
interests of the Conveying Parties shall be transferred to an irrevocable voting trust controlled by Transferee Entities (or their
designee) on the terms and conditions set forth in the Voting Trust Agreement, which shall include the following: (i) in the event
the Closing has not occurred on or prior to May 20, 2013, the Voting Trust Agreement shall terminate automatically and without
further action of the parties thereto; (ii) the powers granted to the trustee thereunder shall not include the power to cause the
Conveying Parties to seek relief, including reorganization, arrangement or similar relief, from its creditors, by voluntary filing
a bankruptcy, insolvency, receivership or other similar proceeding. Spector shall prepare all tax returns of the voting trust and
pay for the preparation and filing thereof; provided that Lender Parties shall be provided with a copy of each such tax return
at least ten (10) business days prior to the filing thereof. This Section 18(o) shall survive the Closing.

 

18.         Additional
Terms.

 

(a)          Prior
to recording of the Deeds in the appropriate county records, the risk of loss or damage to the Property and all liability to third
persons shall be borne by Conveying Parties, except solely arising out of or relating to the acts or omissions of Lender Parties
after the Closing Date upon the Property, for which Lender Parties shall be responsible, which obligation shall survive Closing.

 

(b)          Insurance
policies for the Property maintained by any of Conveying Parties will be maintained until, but terminated at midnight Arizona time
on, the day of the recording of the Deeds in the appropriate county records; provided, however, that Lender Parties may, at their
reasonable discretion, direct Conveying Parties to maintain, modify or amend any or all of such insurance policies as of the Closing
Date by providing written notice to Conveying Parties on or prior to the fifteenth (15th) Business Day prior to the Closing Date.
The Conveying Parties will cause the Lender Parties to be named as additional insureds on all such insurance policies and shall
provide proof of such insurance to the Lender Parties within ten (10) Business Days prior to the Closing Date. Thereafter, the
Transferee Entities will be responsible for insuring the Property. Any short rate cancellation premium refunds are assigned to
and will be paid to the Transferee Entities.

 

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(c)          To
the extent Noteholders and/or IMHFC are required to make certain filings pursuant to federal or state securities or other law,
including one or more Form 8-Ks in connection with this Agreement and the transactions contemplated herein, Noteholders and/or
IMHFC will use reasonable efforts to provide Spector a reasonable opportunity to review such proposed filings or the key
information intended to be included therein. The parties hereto agree to fully cooperate, prior to and after Closing, in accomplishing
such filings and disclosures, without unreasonable cost or liability to Conveying Parties. This Section shall survive the Closing
and shall not terminate.

 

(d)          No
Conveying Party may assign any right, title or interest in, to or under this Agreement without the prior written consent of the
Lender Parties, which consent may be withheld in its sole discretion. Any attempted assignment in violation of this paragraph shall
be null and void and shall constitute a default hereunder. This Agreement shall be binding upon and shall inure to the benefit
of the parties hereto and their respective successors and assigns, subject to the foregoing provisions of this paragraph.

 

(e)          For
one year following the Closing, Transferee Entities shall permit Conveying Parties reasonable access on five (5) days prior notice
with reasonable frequency to all books and records pertaining to the Property and its operations for periods prior to the Closing
Date to permit Borrower Parties to prepare tax returns and address other customary and reasonable pre-Closing matters.

 

(f)          Intentionally
Omitted.

 

(g)          Intentionally
Omitted..

 

19.         Confidentiality.
Prior to Closing (or termination of this Agreement), except as specifically provided for in this Agreement, the parties to this
Agreement agree to keep the financial terms of this Agreement confidential and not disclose the same except (i) as required by
Securities and other laws, (ii) in any court filing or action or as otherwise is reasonably required to pursue rights and remedies
under this Agreement, (iii) to regulatory agencies to the extent required by regulations of such agency, and (iv) to the parties’
attorneys, accountants, advisors, members, partners, shareholders, employees and current and potential lenders, potential mangers,
purchasers and their representatives. If a party hereto is required to respond to a subpoena from a court or an inquiry or subpoena
from a governmental agency, requiring disclosure of information about this Agreement or documents required to be delivered pursuant
hereto or information obtained pursuant hereto pertaining to another party hereto, prior to responding the party hereto shall give
prompt written notice thereof to the affected party hereto so that such other party hereto will have an opportunity to seek a protective
order or other appropriate remedy or seek confidential treatment for the information.

 

20.         Non-Disparagement/Non-Solicitation.
None of the Parties to this Agreement shall knowingly (a) directly or indirectly, make or ratify any statement, public or
private, oral or written, to any person that disparages, either professionally or personally, any other party or any of its
affiliates, past, present and future, and each of them, as well as its and their trustees, directors, officers, members,
managers, partners, lenders, agents, attorneys, insurers, employees, consultants, stockholders, representatives, assigns, and
successors, past, present and future, and each of them, or (b) make any statement or engage in any conduct that has the
purpose or effect of disrupting the business of the Property and the conveyed assets and liabilities; provided that a
judicial action validly brought to enforce rights hereunder shall not be deemed to be the type of conduct contemplated by the
foregoing. Nothing in this Section shall in any way prohibit a party from disclosing such information as may be required by
law or by judicial or administrative process or order or the rules of any securities exchange or similar regulatory
organization applicable to a party in the circumstances. The provisions of this Section shall survive Closing for one year
and then shall terminate; however, the provisions of this Section shall be void and of no force or effect if this Agreement
terminates. The Conveying Parties agree that they shall not, directly or indirectly: (i), solicit, recruit or hire (or
attempt to solicit, recruit or hire) any persons (other than any persons consented to in writing by the Transferee Parties)
who have been employed at any time during the 12-month period immediately preceding such solicitation, recruitment or hiring
or attempt thereof by the Conveying Parties at the L’Auberge de Sedona Resort, the Orchards Inn Resort or the Taos
Cantina; (ii) interfere with the relationship of the Transferees with any person who is employed by or otherwise engaged to
perform services for, or any investor, supplier, licensee, licensor or other business relation of the Conveying Parties
relating to the L’Auberge de Sedona Resort, the Orchards Inn Resort or the Taos Cantina.

 

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21.         Entire
Agreement. This Agreement and its exhibits and the documents and agreements executed in connection herewith constitute and
embody the full and complete understanding and agreement of the parties hereto with respect to the matters addressed herein and
supersede all prior understandings, offers, writings, letters, discussions and agreements, whether oral or in writing if any.

 

22.         Governing
Law. This Agreement is executed and delivered in the State of Arizona, and the law of the State of Arizona shall govern its
interpretation and enforcement without giving effect to the principles of conflicts of law.

 

23.         Waiver.
No waiver of any of the provisions of this Agreement shall constitute a waiver of any other provisions, whether or not similar,
nor shall any waiver be a continuing waiver. Except as expressly provided in this Agreement, no waiver shall be binding unless
executed in writing by the party hereto making the waiver. Any party hereto may waive any provision of this Agreement intended
for its benefit; provided, however, such waiver shall in no way excuse the other party hereto from the performance of any of its
other obligations under this Agreement.

 

24.         Time.
Time is of the essence of this Agreement.

 

25.         Counterpart.
This Agreement may be executed in any number of counterparts and by different Parties hereto in separate counterparts, each of
which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement.

 

26.         No
Partnership. Nothing in this Agreement shall create any partnership, joint venture or other relationship between or among Lender
Parties, on one hand, and Conveying Parties, on the other hand, other than as specifically sent forth herein.

 

27.         Effective
Agreement. This Agreement shall be of no effect until executed by all the Parties named above. No person or entity shall be
a third party beneficiary to this Agreement nor shall any person or entity not a party hereto be entitled to enforce the terms
hereof.

 

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28.         Joint
and Several Liability. Conveying Parties (including Spector) shall be jointly and severally liable for any representations,
warranties or covenants made by any Conveying Party (including Spector) under this Agreement.

 

29.         Post-Closing
Operation. There are numerous operating permits and licenses, and other rights (collectively the "Licenses")
held by Conveying Parties or their affiliates (the "Licensees") necessary or desirable in the operation of the
Property. The Transferee Entities or related entities (collectively "Transferees") will as promptly as practicable
apply for, those same licenses from the various governmental agencies responsible for issuing the same. LA Borrower and Orchards
Annex, LLC, for themselves and their affiliated or subsidiary entities who are the Licensees under the Licenses agree that to the
extent Transferees have not obtained the necessary licenses or permits on the Closing Date, the Transferees may, to the extent
permitted by law, regulation, or governmental practice and procedure, continue to operate under the applicable Licenses held by
Licensees until Transferees obtain the applicable licenses, permits or rights, but in no event for more than one hundred twenty
(120) days after Closing. Conveying Parties make no representation or warranty about the Lender Parties’ rights to use such
Licenses, and is under no obligation to permit such use if not permitted by law or regulation. Transferee Entities shall jointly
and severally indemnify, defend and hold the Licensees and Conveying Parties harmless for, from and against any claims, costs,
demands, actions, liabilities, expenses (including reasonable attorneys’ fees) and obligations (including attorneys’
fees) incurred by Licensees and/or Conveying Parties arising out of or relating to any such Licenses or the use thereof or actions
of Lender Parties with respect thereto, except for claims, costs, demands, actions, liabilities, expenses and obligations related
to or arising from the gross negligence or willful misconduct of a Licensee or Conveying Party. The indemnity obligations shall
survive the Closing and shall terminate twelve (12) months after the Closing. Conveying Parties have disclosed to Lender Parties
that currently, both restaurants (L’Auberge and Taos Restaurant), operate under one series 12 Restaurant Liquor License.
L’Auberge Newco will be required to file for a new Series 12 license for L’Auberge and Taos Cantina. The Arizona Department
of Liquor Licenses generally issues a temporary license for any premises that is currently licensed to the new applicant when such
applicant submits a completed new application in accordance with the department requirements. The Conveying Parties shall use commercially
reasonable efforts to cooperate with the Transferee Entities or any Transferee in obtaining any Licenses.

 

30.         Legal
Representation. The Parties hereby acknowledge that each has been represented by counsel of its own choosing in the negotiation
and preparation of this Agreement, that they have, by and through their duly authorized representatives, each read this Agreement
or has had it read to them, that each has been advised by counsel and is fully aware of the Agreement’s contents and its
legal effect, and that all agreements, exceptions and understandings between the parties are embodied and expressed herein and
that each enters into this Agreement freely, without coercion and based upon its own judgment and not in reliance upon any representations
or promises made to each other, other than those contained herein.

 

31.         Cooperation.
Conveying Parties and Lender Parties agree to execute from time to time, after Closing, such additional documents and instruments
reasonably necessary and appropriate to carry out the full intent of this Agreement and to cooperate to endeavor to obtain any

 third party documents, consents and waivers reasonably necessary to effect the intent of this Agreement.
Each Conveying Party shall bear all costs and expenses for such cooperation.

 

    	39

    	 

    

 

32.           Notices.
All notices and other communications required or permitted hereunder shall be in writing and shall be given by personal delivery,
overnight courier or by deposit in the United States mail, first class, registered or certified, return receipt requested, postage
prepaid, correctly addressed to the intended recipient at the addressees as follows:

 

To Spector and Conveying Parties:

 

      c/o Al Spector

      6900 East Camelback Road, Suite 915

      Scottsdale, Arizona 85251

      e-mail: Al@alspector.net

      Telephone No.: (602) 819-8809

 

With a copy to:     Squire Sanders (US) LLP

      One East Washington Street, Suite 2700

      Phoenix, Arizona 85004

      Attention: Steven L. Lisker

      e-mail: steven.lisker@squiresanders.com

      Telephone No.: (602) 528-4023

 

With a copy to:          Neil Elsey

      Avion Holdings, LLC

      15290 N. 78th Way, Suite B204

      Scottsdale, AZ 85260

      e-mail: gne@avionholdings.com

      Telephone No.: 480-905-0466

 

To Lender Parties/

Transferee Entities:   c/o IMH Financial Corporation

      7001 North Scottsdale Road, Suite 2050

      Scottsdale Arizona 85253

      Attention: Steve Darak

      e-mail: sdarak@imhfc.com

      Telephone No.: (480) 840-8321

 

With a copy to:    McVey Law Firm, PLLC

      P.
O. Box 5360

      Scottsdale, Arizona 85261-5360

      Attention: John M. McVey, Esq.

      e-mail: John.mcvey@azbar.org

      Telephone No.: (480) 840-8402

 

    	40

    	 

    

 

and:     Polsinelli PC

One East Washington St., Suite 1200

Phoenix, Arizona 85004

Attention: Jonathan T. Brohard, Esq.

e-mail: jbrohard@polsinelli.com

Telephone No.: (602) 650-2324

 

To Escrow Agent:   Chicago Title
Insurance Company

      425 East Camelback Road, Suite 200

      Phoenix, Arizona 85016

      Attention: DeWayne C. Huffman

      e-mail: huffmand@ctt.com

      Telephone No.: (602) 667-1046

 

Such notices and other communications shall
be deemed to be given and received as follows: (i) upon actual receipt, if delivered personally; (ii) the next business day, if
delivered by overnight courier; and (iii) three (3) days following deposit in the mail, if delivered by mail. The parties and Escrow
Agent may, from time to time, designate a different address by written notice given in the manner provided for above, not less
than three (3) days prior to the effective date of the change. E-mail addresses are provided for informational purposes only but
email is not a permitted form of notice for any notices required hereunder.

 

33.           IRS Real Estate
Reporting. The Parties hereby appoint Escrow Agent as, and Escrow Agent agrees to act as, "the person responsible for
closing" the transactions which are the subject of this Agreement pursuant to Internal Revenue Code of 1986 § 6045(e).
Escrow Agent shall prepare and file the informational return (IRS Form 1099-B) required by and otherwise comply with the terms
of Internal Revenue Code § 6045(e). Escrow Agent further agrees to indemnify and hold the Parties and their respective attorneys
harmless for, from and against all claims, costs, liabilities, penalties or expenses resulting from Escrow Agent’s failure
to file the appropriate reports and otherwise comply with the terms of the Internal Revenue Code pursuant to this paragraph.

 

34.            Construction.
As used in this Agreement, the masculine, feminine and neuter gender and the singular or plural shall each be construed to
include the other whenever the context so requires. This Agreement shall be construed as a whole and in accordance with its
fair meaning, without regard to any presumption or rule of construction causing this Agreement or any part of it to
be construed against the party causing the Agreement to be written. The parties acknowledge that each has had a full and fair
opportunity to review the Agreement and to have it reviewed by counsel. If any words or phrases in this Agreement have been
stricken, whether or not replaced by other words or phrases, this Agreement shall be construed (if otherwise clear and
unambiguous) as if the stricken matter never appeared and no inference shall be drawn from the former presence of the
stricken matters in this Agreement or from the fact that such matters were stricken. Wherever used herein, the terms
"include(s)" or "including" shall not be words of limitation and shall mean "include(s),
without limitation" or "including, without limitation." The descriptive headings of the paragraphs,
subparagraphs and other portions of this Agreement are inserted for convenience only and shall not control or affect the
meaning or construction of any provisions herein. Wherever possible, each provision of this Agreement shall be interpreted in
such manner as to be valid under applicable law, but if any provision shall be invalid or prohibited hereunder, such
provision shall be ineffective to the extent of such prohibition or invalidation but shall not invalidate the remainder of
such provision or the remaining provisions. Each of the exhibits attached to this Agreement are hereby incorporated into this
Agreement by reference and are made a part hereof.

 

    	41

    	 

    

 

35.            Incorporation
of Recitals. Each of the recitals set forth above are hereby incorporated into this Agreement and made a part hereof.

 

36.            No Recordation.
Neither this Agreement nor any memorandum of this Agreement shall be recorded.

 

37.           Entire Transaction.
This transaction must be consummated in its entirety, and no portion shall occur without the entirety of the transaction closing
contemporaneously.

 

38.            Additional Consideration.
Lender Parties hereby acknowledge receipt of a copy of the Noble House Hotels & Resorts letter of intent dated October 1, 2012
(the "Noble House Letter"). If any Lender Party or any affiliate thereof sells (directly or indirectly) all or
any portion of the L’Auberge Property and/or the Orchards Inn Property to, or partners or joint ventures (directly or indirectly)
with, Noble House (or any affiliate thereof) within one (1) year after the Closing, then such Lender Party (or affiliate thereof)
shall pay, concurrently with the closing(s) or creation of the partnership(s) or joint venture arrangement(s), as applicable, through
escrow (if applicable), as additional consideration hereunder, to Avion (the "Avion Noble House Payment"), an
amount equal to: (i) 0.5% of the purchase price paid by Noble House (or any affiliate thereof) at such closing(s), in the event
the total purchase price payable thereunder is $85,000,000 or greater (ii) 0.4% of the purchase price paid by Noble House (or any
affiliate thereof) at such closing(s), in the event the total purchase price payable thereunder is $82,000,000 or greater but less
than $85,000,000; and (iii) 0.25% of the purchase price paid by Noble House (or any affiliate thereof) at such closing(s), in the
event the total purchase price payable thereunder less than $82,000,000. This paragraph shall survive Closing and shall not terminate
except upon the making of the payments required pursuant to this Section.

 

    	42

    	 

    

 

IN WITNESS WHEREOF, the parties hereto have
executed this Agreement as of the date and year first written above.

 

	 	IMH:
	 	IMH FINANCIAL CORPORATION, a Delaware corporation
	 	 	 	 
	 	 	By:	/s/ Steven T. Darak
	 	 	 Print Name:	Steven T. Darak
	 	 	  Its:	Chief Financial Officer
	 	 	 	 
	 	 	 	 
	 	HL NOTEHOLDER:
	 	IMH SPECIAL ASSET NT 233, an Arizona limited liability

company
	 	 	 	 
	 	By:	IMH
    Financial Corporation, a Delaware corporation
	 	 	 	 
	 	 	By:	/s/ Steven T. Darak
	 	 	 Print Name:	Steven T. Darak
	 	 	  Its:	Chief Financial Officer
	 	 	 	 
	 	 	 	 
	 	LA NOTEHOLDER:
	 	IMH SPECIAL ASSET NT 232, an Arizona limited liability

company
	 	 
	 	By:	IMH Financial Corporation, a Delaware corporation
	 	 	 	 
	 	 	By:	/s/ Steven T. Darak
	 	 	 Print Name:	Steven T. Darak
	 	 	  Its:	Chief Financial Officer

 

Amended and Restated Sedona Agreement –
Signature Page 1

 

    	 

    	 

    

 

	 	HL BORROWER:
	 	HL LLC, an Arizona limited liability company
	 	 	 	 
	 	 	By:	/s/ Al Spector
	 	 	Print Name:	Al Spector
	 	 	Its:	Manager
	 	 	 	 
	 	 	LA BORROWER:
	 	 	L’AUBERGE ORCHARDS LLC, an Arizona limited
	 	 	liability company 
	 	 	 	 
	 	 	By:	/s/ Al Spector
	 	 	Print Name:	Al Spector
	 	 	Its:	Manager
	 	 	 	 
	 	/s/ Albert B. Spector, Jr.
	 	Albert B. Spector, Jr,
	 	 	 	 
	 	ORCHARDS ANNEX LLC, an Arizona limited liability company
	 	 	 	 
	 	 	By:	/s/ Al Spector
	 	 	Print Name:	Al Spector
	 	 	Its:	Manager
	 	 	 	 
	 	ORCHARDS INN & RESTAURANT LLC, an Arizona limited liability company
	 	 	 	 
	 	 	By:	/s/ Al Spector
	 	 	Print Name:	Al Spector
	 	 	Its:	Manager

 

Amended and Restated Sedona Agreement –
Signature Page 2

 

    	 

    	 

    

 

	 	L’AUBERGE DE SEDONA LLC, an Arizona limited liability

company
	 	 
	 	 	By:	/s/ Al Spector
	 	 	 Print Name:	Al Spector
	 	 	  Its:	Manager
	 	 	 	 
	 	TAOS CANTINA LLC, an Arizona limited liability company
	 	 	 	 
	 	 	By:	/s/ Al Spector
	 	 	 Print Name:	Al Spector
	 	 	  Its:	Manager
	 	 	 	 
	 	SEDONA CULINARY CONCEPTS LLC, an Arizona limited

liability company
	 	 	 	 
	 	 	By:	/s/ Al Spector
	 	 	 Print Name:	Al Spector
	 	 	  Its:	Manager

 

	 	SPECTOR OFFICES LLC, an Arizona limited liability company
	 	 
	 	 	By:	/s/ Al Spector
	 	 	 Print Name:	Al Spector
	 	 	  Its:	Manager

 

Amended and Restated Sedona Agreement –
Signature Page 3

 

    	 

    	 

    

 

	 	BARRETT REALTY, LLC, an Arizona limited liability company
	 	 
	 	 	By:	/s/ Al Spector
	 	 	 Print Name:	Al Spector
	 	 	  Its:	Manager

 

	 	L’AUBERGE SPA LLC, an Arizona limited liability company
	 	 
	 	 	By:	/s/ Al Spector
	 	 	 Print Name:	Al Spector
	 	 	  Its:	Manager

 

	 	L’AUBERGE NEWCO, LLC, a Delaware limited liability

company
	 	 
	 	By:	IMH Financial Corporation, a Delaware corporation, its sole member
	 	 	 	 
	 	 	By:	/s/ Steven T. Darak
	 	 	 Print Name:	Steven T. Darak
	 	 	  Its:	Chief Financial Officer

 

	 	ORCHARDS NEWCO, LLC, an Delaware limited liability

company
	 	 
	 	By:	IMH Financial Corporation, a Delaware corporation
	 	 	 	 
	 	 	By:	/s/ Steven T. Darak
	 	 	 Print Name:	Steven T. Darak
	 	 	  Its:	Chief Financial Officer

 

Amended and Restated Sedona Agreement –
Signature Page 4

 

    	 

    	 

    

 

	 	HL NEWCO, LLC, an Delaware limited liability company
	 	 
	 	By:	IMH Financial Corporation, a Delaware corporation, its sole member
	 	 	 	 
	 	 	By:	/s/ Steven T. Darak
	 	 	 Print Name:	Steven T. Darak
	 	 	  Its:	Chief Financial Officer

  

	 	CANYON PORTAL II, L.L.C., an Arizona limited liability

company
	 	By:
	 	 	By:	/s/ Al Spector
	 	 	Print Name:	Al Spector
	 	 	Its:	Manager

 

Amended and Restated Sedona Agreement –
Signature Page 5

 

    	 

    	 

    

 

The undersigned Escrow
Agent hereby (a) accepts the Escrow created by the foregoing Agreement, (b) agrees to act in accordance with the terms of this
Agreement, (c) agrees to be the person responsible for closing the transaction within the meaning of Section 6045(e)(2)(A) of the
Internal Revenue Code of 1986 (the "Code") and filing all necessary information reports, returns and statements
(collectively, the "Reports") regarding the transaction required by the Code and, promptly upon the filing of
the Reports, transmit copies of the Reports to the Parties, (d) agrees to indemnify and hold harmless the Parties and their respective
attorneys and brokers from and against all claims, costs, liabilities, penalties, or expenses resulting from Escrow Agent’s
failure to file the Reports, and (e) agrees to deliver to the Parties an insured closing protection letter from Chicago Title Insurance
Company within five (5) days after the date hereof.

 

	 	ESCROW AGENT:
	 	 
	 	CHICAGO TITLE INSURANCE

COMPANY
	 	 	 
	 	By:	/s/ DeWayne Huffman
	 	 Print Name:	DeWayne Huffman
	 	 Its:	Assistant Vice President and
	 	 	Senior Escrow Manager

 

Amended and Restated Sedona Agreement –
Signature Page 6

  

    	 

    	 

    

 

 

SCHEDULE
A-i

 

HL Loan
Documents

 

		1.	Construction Loan Agreement between Original Lender and HL Borrower, dated June 11, 2007 (the “HL
Loan Agreement”);

 

		2.	Modification of Construction Loan Agreement between Original Lender, HL Borrower and Spector and
Marie Spector, individually and as Trustees for the Trust, and Jacob Gechman, an individual, as Guarantors, dated April 29, 2008
(the “First HL Loan Agreement Modification”);

 

		3.	Second Modification Construction Loan Agreement between Original Lender, HL Borrower and
                                                          Guarantors, dated September 23, 2009 (the “Second HL Loan Agreement Modification”);

 

		4.	Promissory Note Secured by Real Property by HL Borrower as Maker to Original Lender as Payee, dated
June 11, 2007 (the “HL Note”);

 

		5.	Amended and Restated Promissory Note Secured by Real Property by HL Borrower as Maker to Original
Lender as Payee, dated April 29, 2008 (the “Restated HL Note”);

 

		6.	Letter Agreement between Original Lender and HL Borrower, extending the Maturity Date of the Restated
HL Note dated June 30, 2009;

 

		7.	Construction Deed of Trust, Assignment of Rents and Security Agreement from HL Borrower, as Trustor,
to Fidelity National Title Insurance Agency of Coconino, Inc., as Trustee, for the benefit of Original Lender, as Beneficiary,
dated June 11, 2007, recorded in the Official Records of Yavapai County, Arizona (the “Yavapai Records”) on
June 11, 2007 in Book 4513, Page 768 (the “First HL Deed of Trust”);

 

    	 

    	 

    

 

		8.	Security Agreement (Pledge) by Spector as Trustee for the Trust, and HIDC Investments, L.L.C.,
as Debtor in favor of Original Lender as Secured Party, dated April 29, 2008 (the “Spector Trust and HIDC HL Security
Agreement”);

 

		9.	Security Agreement (Pledge) by Spector as Trustee for the Trusts, as Grantor, in favor of Original
Lender, as Secured Party, dated May 7, 2008 (the “Second Spector Trust HL Security Agreement”);

 

		10.	Amended and Restated Security Agreement (Pledge) by Spector, individually and as Trustee for the
Trust and HIDC Investments, L.L.C., as Debtor, in favor of Original Lender, as Secured Party dated May 28, 2009 (the “Restated
Spector Trust/Individual and HIDC HL Security Agreement”);

 

		11.	Unconditional Loan Guaranty by Spector and Marie Spector, individually and as Trustees for the
Trust, and Jacob Gechman, individually, as Guarantor, in favor of Original Lender, dated June 11, 2007 (the “HL Guaranty”);

 

		12.	Environmental Certification and Indemnity Agreement by Spector and Marie Spector, individually
and as Trustees of the Trust, and Jacob Gechman, individually, as Indemnitor, in favor of Original Lender, dated June 11, 2007
(the “HL Environmental Guaranty”);

 

		13.	Negative Pledge Agreement between Original Lender and Amara Resort, L.L.C. dated April 29, 2008
(the “Amara Negative Pledge Agreement”);

 

		14.	Negative Pledge Agreement between Original Lender and Canyon Portal II, LLC dated April 29, 2008
(the “Canyon Portal II Negative Pledge Agreement”);

 

    	2

    	 

    

 

		15.	UCC Financing Statement with HL Borrower, as Debtor, and Original Lender as Secured Party, filed
with the Arizona Secretary of State (the “SOS”) on June 20, 2007 in File No. 200714870621 and amended by UCC
Financing Statement Amendments (2) filed with the SOS on December 2, 2009 (the “HL Borrower HL SOS UCC”);

 

		16.	UCC Financing Statement with Spector individually, as Debtor, and Original Lender, as Secured Party,
filed with the SOS on May 1, 2008 in File No. 200815378060, as amended by UCC Financing Statement Amendments filed with the SOS
on June 3, 2009 and September 1, 2009 (the “First Spector Individual HL SOS UCC”);

 

		17.	UCC Financing Statement with the Trust, as Debtor, and Original Lender, as Secured Party, filed
with the SOS on May 1, 2008 in File No. 200815385309, as amended by UCC Financing Statement Amendment filed with the SOS on June
3, 2009 and UCC Financing Statement Amendments (2) filed with the SOS on September 1, 2009 (collectively, the “Spector
Trust HL SOS UCC”);

 

		18.	UCC Financing Statement with HIDC Investments L.L.C., as Debtor, and Original Lender, as Secured
Party, filed with the SOS on May 1, 2008 in File No. 200815378082, as amended by UCC Financing Statement Amendments (2) filed with
the SOS on September 1, 2009 (the “HIDC HL SOS UCC”);

 

		19.	UCC Financing Statement with Spector, as an individual, as Debtor, and Original Lender, as Secured
Party, filed with the SOS on June 3, 2009 in File No. 200915824290, as amended by UCC Financing Statement Amendments (2) filed
with the SOS on September 1, 2009 (the “Second Spector Individual HL SOS UCC”);

 

		20.	UCC Financing Statement with Michael Leclere, as an individual, as Debtor and Original Lender as
Secured Party, filed with the New York Secretary of State (“NYSOS”) on May 9, 2008 in File No. 418361, as amended
by UCC Financing Statement Amendment filed with the NYSOS on August 31, 2009 as File No. 428551 and File No. 428553 and filed on
March 16, 2010 in File No. 408193 (the “Leclere Individual HL SOS UCC”);

 

    	3

    	 

    

 

The documents
referred to above as items1 through 20, as modified and amended, are referred to as the HL Loan Documents. The HL Loan and HL Loan
Documents were assigned by Original Lender to HL Noteholder by the following:

 

		21.	Allonge to Promissory Note by Original Lender to HL Noteholder dated November 4, 2009 (the “HL
Note Allonge”);

 

		22.	Assignment of Note and Deed of Trust by Original Lender to HL Noteholder, dated November 4, 2009,
recorded in the Yavapai Records on November 13, 2009, in Book 4706, Page 680 (the “HL Loan Documents Assignment”);

 

		23.	UCC Financing Statement Amendment, assigning the First HL Borrower HL SOS UCC, filed with the SOS
on December 2, 2009;

 

		24.	UCC Financing Statement Amendment, assigning the First Spector Individual HL SOS UCC, filed with
the SOS on March 16, 2010;

 

		25.	UCC Financing Statement Amendment, assigning the Spector Trust HL SOS UCC, filed with the SOS on
March 16, 2010;

 

		26.	UCC Financing Statement Amendment, assigning the HIDC HL SOS UCC, filed with the SOS on March 16,
2010;

 

		27.	UCC Financing Statement Amendment, assigning the Second Spector Individual HL SOS UCC, filed with
the SOS on March 16, 2010;

 

		28.	UCC Financing Statement Amendment, assigning the Leclere Individual HL SOS UCC, filed with the
SOS on March 16, 2010.

 

    	4

    	 

    

 

  

 

SCHEDULE
A-ii

 

LA Loan
Documents

 

	 	a.	Construction Loan Agreement between Original LA Lender and LA Borrower, dated May 7, 2008 (the “LA Loan Agreement”);

 

	 	b.	First Modification of Construction Loan Agreement between LA Borrower, Original Lender and Spector, individually, and as Trustee for the Trust, dated February 1, 2009 (the “First LA Loan Agreement Modification”);

 

	 	c.	Second Modification of Construction Loan Agreement between LA Borrower, Original Lender and Spector, individually, and as Trustee for the Trust, dated September 23, 2009 (the “Second LA Loan Agreement Modification”);

 

	 	d.	Promissory Note by LA Borrower as Maker to Original Lender as Payee, dated May 7, 2008 (the “LA Note”);

 

	 	e.	Construction Deed of Trust, Assignment of Rents, Security Agreement and Fixture Filing from LA Borrower, as Trustor, to Transaction Title Insurance Company, as Trustee, for the benefit of Original Lender, as Beneficiary, recorded in the Official Records of Coconino County, Arizona (the “Coconino Records”) on May 9, 2008 in Instrument No. 3485966 dated May 7, 2008 (the “First LA Deed of Trust”);

 

	 	f.	Security Agreement (Pledge) by Spector as Trustee for the Trust, as Grantor, in favor of Original Lender, as Secured Party, dated May 7, 2008 (the “Spector Trust LA Security Agreement”);

 

	 	g.	Security Agreement (Pledge) by Spector, individually as Grantor, in a favor of Original Lender, as Secured Party, dated May 28, 2009 (the “Spector Individual LA Security Agreement”);

 

 

    	 

    	 

     

 

 

	 	h.	Security Agreement (Pledge) by Leclere, individually as Grantor, in favor of Original Lender, as secured party, dated May 7, 2008 (the “Leclere LA Security Agreement”);

 

	 	i.	Unconditional Loan Guaranty by Spector, individually and as Trustee for the Trust, as Guarantor, in favor of Original Lender, as Creditor, dated May 7, 2008 (the “LA Guaranty”);

 

	 	j.	Environmental Certification and Indemnity Agreement by Spector, individually and as Trustee of the Trust, in favor of Original Lender, as Lender, dated May 7, 2008 (the “LA Environmental Indemnity”);

 

	 	k.	UCC Financing Statement with Spector individually, as Debtor, and Original Lender, as Secured Party, filed with the Arizona Secretary of State (the “SOS”) on May 1, 2008 in File No. 200815378060, as amended by UCC Financing Statement Amendment filed with the SOS on June 3, 2009 and UCC Amendments (2) filed with the SOS on September 1, 2009 (collectively the “First Spector Individual LA SOS UCC”);

 

	 	l.	UCC Financing Statement with the Trust, as Debtor, and Original Lender, as Secured Party, filed with the SOS on May 1, 2008 in File No. 200815385309, as amended by UCC Financing Statement Amendment filed with the SOS on June 3, 2009 and UCC Financing Statement Amendments (2) filed with the SOS on September 1, 2009 (collectively the “Spector Trust LA SOS UCC”);

 

	 	m.	UCC Financing Statement with LA Borrower, as Debtor, and Original Lender, as Secured Party, filed with the SOS on May 9, 2008 in File No. 200815395618, as amended by UCC Financing Statement Amendment filed with the SOS on December 2, 2008 (collectively the “LA Borrower LA SOS UCC”);

 

    	2

    	 

     

	 	n.	UCC Financing Statement with Spector, as an individual, as Debtor, and Original Lender, as Secured Party, filed with the SOS on June 3, 2009 in File No. 200915824290, as amended by UCC Financing Statement Amendments (2) filed with the SOS on September 1, 2009 (collectively, the “Second Spector Individual LA SOS UCC”);

 

	 	o.	UCC Financing Statement with Michael Leclere, as an individual, as Debtor and Original Lender as Secured Party, filed with the New York Secretary of State (“NYSOS”) on May 9, 2008 in File No. 418361, as amended by UCC Financing Statement Amendment filed with the NYSOS on August 31, 2009 as File No. 428551 and File No. 428553 and filed on March 16, 2010 in File No. 408193 (the “Leclere Individual LA SOS UCC”);

 

	 	p.	UCC Financing Statement with LA Borrower, as Debtor, and Original Lender, as Secured Party, filed in the Records on May 16, 2008 as Instrument No. 3486766 (the “LA Borrower LA Recorded UCC”);

 

	 	q.	Deed of Trust, Assignment of Rents, Security Agreement and Fixture Filing from LA Borrower, as Trustor, to Stewart Title & Trust of Phoenix, Inc., as Trustee, for the benefit of Original Lender, as Beneficiary, dated July 28, 2009, recorded in the Coconino Records on July 29, 2009 in Instrument No. 3533054 (the “Second LA Deed of Trust”).

 

The documents referred to above as items
a. through q., were made subject to the lien of the Senior Deed of Trust, as defined in the Subordination Agreement, and were subsequently
assigned by Original Lender to LA Noteholder by the following:

 

	 	r.	Allonge to Promissory Note by Original Lender to LA Noteholder dated November 4, 2009 (the “LA Note Allonge”);

 

	 	s.	Assignment of Note and Deed of Trust by Original Lender to LA Noteholder, dated November 4, 2009, with respect to the First LA Deed of Trust, recorded in the Coconino Records on November 13, 2009 in Instrument No. 3544893 (the “First LA Deed of Trust Assignment”);

 

    	3

    	 

     

	 	t.	Assignment of the Deed of Trust by Original Lender to NL Noteholder, dated April 25, 2011, with respect to the Second HL Deed of Trust, recorded in the Coconino Records on May 10, 2011 in Instrument No. 3595049 (the “Second LA Deed of Trust Assignment”);

 

	 	u.	UCC Financing Statement Amendment, assigning the First Spector Individual LA SOS UCC, filed with the SOS on March 16, 2010;

 

	 	v.	UCC Financing Statement Amendment, assigning the Spector Trust LA SOS UCC, filed with the SOS on March 16, 2010;

 

	 	w.	UCC Financing Statement Amendment, assigning the LA Borrower LA SOS UCC, filed with the SOS on March 16, 2010;

 

	 	x.	UCC Financing Statement Amendment, assigning the Second Spector Individual LA SOS UCC, filed with the SOS on March 16, 2010;

 

	 	y.	UCC Financing Statement Amendment, assigning the Leclere Individual LA SOS UCC, filed with the SOS on March 16, 2010;

 

	 	z.	UCC Financing Statement Amendment, assigning the LA Borrower LA Recorded UCC, recorded in the Records on March 24, 2010, in Instrument No. 3556918;

 

	 	aa.	Assignment of Deed of Trust by Original Lender to LA Noteholder, dated April 25, 2011, with respect to the Second LA Deed of Trust, recorded in the Coconino Records on May 10, 2011 in Instrument No. 3595049.

 

    	4

    	 

     

 

 

 

Schedule 3(d)

 

Pending or Threatened Litigation

 

	 	1.	Carl Romanik and Mary Romanik, as Trustees of the Romanik Trust, Plaintiffs. v. HL LLC, an Arizona limited liability company; IMH Special Asset NT 233, LLC, an Arizona limited liability company, et. al. The Cause No. Is CV2011-80371 and the case is in Yavapal County Superior Court. The Plaintiff is asking for an easement over an area of LaMerra's land that sits at the banks of Oak Creek so that Plaintiff can have access to the Creek.

 

	 	2.	H.E. Graham, who owns tax parcel 408-31-029 which parcel is adjacent to the LaMerra subdivision, has written letters to HL LLC over the last 3 years requesting a 25' wide easement in perpetuity across a portion of the LaMerra property. We have not heard from Mr. Graham in more than a year and to our knowledge he has not filed an action in any court.

 

	 	3.	On October 27, 2012 Jeff Newton fell down the stairs at the house at LaMerra and Is deceased The incident was reported to the insurance carrier (Fireman's Fund) which assigned Claim Number 00512026416 to the incident. Fireman's Fund investigators have found out that the mother of the deceased has gotten copies of reports from the Sedona Fire Department. To our knowledge no actual daim or notice of daim has been filed.

  

 

    	 

    	 

    

 

 

Schedule 3(e)

 

Bankruptcy Proceedings

 

NONE

 

 

    	 

    	 

    

 

 

EXHIBIT B

 

LEGAL DESCRIPTION

 

(LaMerra Property)

 

THE LAND REFERRED TO HEREIN BELOW IS SITUATED
IN THE COUNTY OF YAVAPAI, STATE OF ARIZONA, AND IS DESCRIBED AS FOLLOWS:

 

PARCEL NO. 1:

 

THE NORTH HALF OF THE NORTHEAST QUARTER OF SECTION 34, TOWNSHIP
17 NORTH, RANGE 5 EAST OF THE GILA AND SALT RIVER BASE AND MERIDIAN, YAVAPAI COUNTY, ARIZONA;

 

EXCEPT BEGINNING AT A POINT IN THE SOUTHERLY LINE OF SAID LAND,
WHICH POINT IS DISTANT 650 FEET EASTERLY ALONG SAID SOUTHERLY LINE FROM THE SOUTHWEST CORNER OF SAID LAND;

 

THENCE WESTERLY ALONG SAID SOUTHERLY LINE TO THE SOUTHWEST CORNER
OF SAID LAND;

 

THENCE NORTHERLY ALONG THE WESTERLY LINE OF SAID LAND, A DISTANCE
OF 670 FEET;

 

THENCE SOUTHEASTERLY IN A DIRECT LINE TO THE POINT OF BEGINNING.

 

PARCEL NO. 2:

 

THE SOUTHEAST QUARTER OF THE SOUTHEAST QUARTER (BEING LOT 13)
OF SECTION 27, TOWNSHIP 17 NORTH, RANGE 5 EAST OF THE GILA AND SALT RIVER BASE AND MERIDIAN, YAVAPAI COUNTY, ARIZONA.

  

PARCEL NO.3:

 

ALL THAT PORTION OF THE SOUTHEAST QUARTER OF SECTION 27, TOWNSHIP
17 NORTH, RANGE 5 EAST OF THE GILA AND SALT RIVER BASE AND MERIDIAN, YAVAPAI COUNTY, ARIZONA, DESCRIBED AS FOLLOWS:

 

BEGINNING AT THE SOUTH QUARTER CORNER OF SAID SECTION 27, MARKED
BY A G.L.O. BRASS CAP;

 

THENCE NORTH 2 DEGREES 37 MINUTES 30 SECONDS WEST, 115.90 FEET
TO AN EXISTING FENCE;

 

THENCE NORTH 89 DEGREES 24 MINUTES 50 SECONDS EAST, ALONG SAID
FENCE, 204.31 FEET;

 

THENCE SOUTH 2 DEGREES 37 MINUTES 30 SECONDS EAST TO A POINT
ON THE SOUTH LINE OF SAID SECTION 27;

 

THENCE SOUTH 89 DEGREES 00 MINUTES WEST, ALONG SAID SECTION
LINE TO THE ACTUAL POINT OF BEGINNING.

  

 

    	 

    	 

     

PARCEL NO.4:

 

THAT PORTION OF THE SOUTHEAST QUARTER OF THE SOUTHWEST QUARTER
OF SECTION 27, TOWNSHIP 17 NORTH, RANGE 5 EAST OF THE GILA AND SALT RIVER BASE AND MERIDIAN, YAVAPAI COUNTY, ARIZONA, LYING EASTERLY
OF A LINE LOCATED 100 FEET WEST OF AND PARALLEL TO SAID EAST LINE OF THE SOUTHWEST QUARTER, AND SOUTH OF A LINE HAVING A COURSE
OF NORTH 85 DEGREES 13 MINUTES EAST THROUGH A POINT THAT LIES NORTH 2 DEGREES 37 MINUTES 30 SECONDS WEST, 118.5 FEET FROM THE SOUTH
QUARTER CORNER OF SECTION 27 MARKED BY A G.L.O. BRASS CAP.

  

PARCEL NO. 5:

 

ALL THAT PORTION OF THE SOUTHWEST QUARTER OF THE SOUTHEAST QUARTER
OF SECTION 27, TOWNSHIP 17 NORTH, RANGE 5 EAST OF THE GILA AND SALT RIVER BASE AND MERIDIAN, YAVAPAI COUNTY, ARIZONA, LYING SOUTHERLY
OF AND CONTIGUOUS TO THE FOLLOWING DESCRIBED BOUNDARY LINE:

 

FROM THE NORTHEAST CORNER OF THE QUIT CLAIM PARCEL OF LAND DESCRIBED
AS BOOK 938 OF OFFICIAL RECORDS, PAGE 57, YAVAPAI COUNTY RECORDERS OFFICE, THE TRUE POINT OF BEGINNING, SAID CORNER LYING ON THE
EAST-WEST BARBED WIRE FENCE AS SHOWN ON THE RECORD OF SURVEY RECORDED AS BOOK 17 OF LAND SURVEYS AT PAGE 17, AND ALSO ON THE SOUTHERLY
LINE OF THE MONTERASTELLI (SIC) BOUNDARY AS SHOWN ON RESULTS OF SURVEY BY PATRICK NEVILLE, RECORDED AS BOOK 16, AT PAGE 100, DATED
JULY 14, 1992;

 

THENCE SOUTH 89 DEGREES 53 MINUTES 02 SECONDS EAST, ALONG THE
FENCE AND ITS EASTERLY EXTENSION AND ALONG THE SOUTHERLY LINE OF THE MONTERASTELLI BOUNDARY, 791.99 FEET;

 

THENCE SOUTH 41 DEGREES 19 MINUTES 24 SECONDS EAST, 39.09 FEET
TO THE SOUTH LINE OF SECTION 27, PER THE ARIZONA ENGINEERING COMPANY RECORD OF SURVEY RECORDED AS BOOK 10 OF RECORDS OF SURVEY,
AT PAGE 99;

 

THENCE SOUTH 88 DEGREES 14 MINUTES 32 SECONDS EAST, ALONG THE
SOUTH LINE OF SECTION 27, 75.15 FEET;

 

THENCE SOUTH 73 DEGREES 27 MINUTES 42 SECONDS EAST, 55.92 FEET;

 

THENCE NORTH 22 DEGREES 46 MINUTES 34 SECONDS EAST, 11.20 FEET;

 

THENCE NORTH 87 DEGREES 02 MINUTES 45 SECONDS EAST, 21.97 FEET;

 

THENCE SOUTH 81 DEGREES 16 MINUTES 09 SECONDS EAST, 29.96 FEET;

 

THENCE SOUTH 65 DEGREES 43 MINUTES 54 SECONDS EAST, 22.05 FEET
TO THE EAST LINE OF THE NORTHWEST QUARTER OF THE NORTHEAST QUARTER OF SECTION 34, WHICH IS THE POINT OF TERMINUS OF THE BOUNDARY
LINE;

 

THE BASIS OF BEARINGS FOR THIS DESCRIPTION IS SOUTH 88 DEGREES
14 MINUTES 32 SECONDS EAST, FROM THE SOUTH QUARTER CORNER OF SECTION 27 TO THE SOUTHEAST CORNER OF SECTION 27, ACCORDING TO THE
ARIZONA ENGINEERING COMPANY RESULTS OF SURVEY RECORDED AS BOOK 10 OF RECORDS OF SURVEYS, AT PAGE 99, YAVAPAI COUNTY RECORDERS OFFICE.

 

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PARCEL NO. 6:

 

EASEMENT FOR ROADWAY FOR INGRESS AND EGRESS FOR THE PURPOSE
OF TRAVEL AND MAINTENANCE AS CREATED IN BOOK 3833, OF OFFICIAL RECORDS, PAGE 934, BEING 50 FEET WIDE, LYING 30 FEET ON THE WESTERLY
AND SOUTHERLY SIDES AND 20 FEET ON THE EASTERLY AND NORTHERLY SIDES OF THE FOLLOWING DESCRIBED PROPERTY:

 

THE CENTERLINE OF AN EXISTING DIRT ROAD IN SECTION 27, TOWNSHIP
17 NORTH, RANGE 5 EAST OF THE GILA AND SALT RIVER BASE AND MERIDIAN, YAVAPAI COUNTY, ARIZONA, MORE PARTICULARLY DESCRIBED BY METES
AND BOUNDS AS FOLLOWS:

 

FROM THE SOUTHWEST CORNER OF SECTION 27;

 

THENCE NORTH 86 DEGREES 13 MINUTES 45 SECONDS EAST, A DISTANCE
OF 2448.25 FEET TO A CONCRETE MONUMENT MARKED 1/4 ON THE WEST FACE, WITH AN ALUMINUM CAP MARKED LS 13010, ACCEPTED BY JOHN A. LUCKOW,
ARIZONA REGISTERED LAND SURVEYOR, AS THE TRUE LOCATION OF THE SOUTH QUARTER CORNER OF RECORD OF SURVEY DATED FEBRUARY 24, 1990,
RECORDED IN BOOK 10 OF LAND SURVEYORS, PAGE 99, YAVAPAI COUNTY RECORDERS OFFICE, WHICH IS IDENTICAL TO THE SOUTHEAST CORNER OF
THE PROPERTY AS CONVEYED TO HARRIET KOHLER (ALSO KNOWN AS HARRIET K. SEAMAN) BY INSTRUMENTS RECORDED IN THE OFFICE OF THE RECORDER
OF YAVAPAI COUNTY, ARIZONA, IN BOOK 179 OF DEEDS, PAGE 586 AND IN BOOK 357 OF OFFICIAL RECORDS, PAGE 233 AND WHICH IS ALSO IDENTICAL
TO THE NORTHEAST CORNER OF PARCEL 4 ABOVE, ACCEPTED AND UTILIZED AS THE QUARTER CORNER BETWEEN SECTIONS 27 AND 34, PRIOR TO THE
1956 GLO DEPENDENT RESURVEY OF SECTION 27 BY WHICH THE QUARTER CORNER BETWEEN SECTIONS 27 AND 35 HAS BEEN MARKED BY A STANDARD
GLO BRASS CAPPED PIPE, WHICH IS THE SAME GLO BRASS CAP ESTABLISHING THE SOUTHEAST CORNER OF THE PROPERTY DESCRIBED IN PARCEL 4
ABOVE;

 

THENCE SOUTH 85 DEGREES 13 MINUTES 00 SECONDS WEST, 15.05 FEET,
TO THE TRUE POINT OF BEGINNING OF THIS DESCRIPTION:

 

THENCE NORTH 07 DEGREES 16 MINUTES 03 SECONDS
EAST, 55.48 FEET;

 

THENCE NORTH 00 DEGREES 25 MINUTES 35 SECONDS EAST, 201.21 FEET
TO THE EAST LINE OF THE KOHLER PARCEL AS DESCRIBED IN WARRANTY DEED RECORDED IN BOOK 179 OF DEEDS, PAGE 586, YAVAPAI COUNTY RECORDERS
OFFICE, STATE OF ARIZONA;

 

THENCE NORTH 00 DEGREES 25 MINUTES 35 SECONDS EAST, 283.79 FEET
TO THE P.C. OF A CURVE, HAVING A RADIUS OF 215.00 FEET AND A CENTRAL ANGLE OF 18 DEGREES 55 MINUTES 40 SECONDS;

 

THENCE NORTHERLY ALONG A CURVE TO THE LEFT, AN ARC DISTANCE
OF 71.03 FEET, TO THE EAST LINE OF THE KOHLER PARCEL AND THE BEGINNING OF A CURVE, HAVING A RADIUS OF 215.00 FEET AND A CENTRAL
ANGLE OF 18 DEGREES 53 MINUTES 55 SECONDS;

 

THENCE NORTHERLY ALONG A CURVE TO THE LEFT, AN ARC DISTANCE
OF 70.92 FEET TO THE PT.;

 

 

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THENCE NORTH 37 DEGREES 24 MINUTES 00 SECONDS WEST, 164.52 FEET
TO THE P.C. OF A CURVE, HAVING A RADIUS OF 130.00 FEET AND A CENTRAL ANGLE OF 07 DEGREES 11 MINUTES 55 SECONDS;

 

THENCE NORTHWESTERLY ALONG A CURVE TO THE LEFT, AN ARC DISTANCE
OF 16.33 FEET TO THE NORTH LINE OF THE KOHLER PARCEL AND THE BEGINNING OF A CURVE, HAVING A RADIUS OF 130.00 FEET AND A CENTRAL
ANGLE OF 32 DEGREES 59 MINUTES 56 SECONDS;

 

THENCE NORTHWESTERLY ALONG A CURVE TO THE LEFT, AN ARC DISTANCE
OF 74.87 FEET TO THE P.T.;

 

THENCE NORTH 77 DEGREES 35 MINUTES 51 SECONDS WEST, 92.01 FEET
TO THE P.C. OF A CURVE, HAVING A RADIUS OF 250.00 FEET AND A CENTRAL ANGLE OF 10 DEGREES 44 MINUTES 58 SECONDS;

 

THENCE WESTERLY ALONG A CURVE TO THE LEFT, AN ARC DISTANCE OF
46.90 FEET TO THE NORTH LINE OF THE KOHLER PARCEL AND THE BEGINNING OF A CURVE, HAV1NG A RADIUS OF 250.00 FEET AND A CENTRAL ANGLE
OF 10 DEGREES 51 MINUTES 24 SECONDS;

 

THENCE WESTERLY ALONG A CURVE TO THE LEFT, AN ARC DISTANCE OF
47.37 FEET TO THE P.T.;

 

THENCE SOUTH 80 DEGREES 47 MINUTES 47 SECONDS WEST, 160.95 FEET;

 

THENCE SOUTH 84 DEGREES 31 MINUTES 30 SECONDS WEST, 60.56 FEET
TO THE TERMINUS OF THIS DESCRIPTION AT THE WEST LINE OF THE KOHLER PARCEL, THE NORTHWEST CORNER OF WHICH BEARS NORTH 01 DEGREES
01 MINUTES 44 SECONDS WEST, A DISTANCE OF 116.37 FEET.

  

PARCEL NO. 7:

 

EASEMENT FOR IRRIGATION DITCH PURPOSES AS CREATED IN BOOK 2250,
OF OFFICIAL RECORDS, PAGE 382, OVER AND ACROSS THE REAL PROPERTY DESCRIBED BELOW. THE CENTERLINE OF THE EASEMENT IS THE CENTERLINE
OF THE EXISTING DITCH AND THE EASEMENT IS OF THE WIDTH REASONABLY NECESSARY FOR THE MAINTENANCE AND OPERATION OF THE DITCH.

 

REAL PROPERTY WHICH EASEMENT CROSSES IS DESCRIBED AS FOLLOWS:

 

THE FOLLOWING DESCRIBED PORTION OF THE EAST HALF OF THE SOUTHEAST
QUARTER OF THE SOUTHWEST QUARTER OF SECTION 27, TOWNSHIP 17 NORTH OF RANGE 5 EAST OF THE GILA AND SALT RIVER BASE AND MERIDIAN,
YAVAPAI COUNTY, ARIZONA, TO WIT:

 

BEGINNING AT THE QUARTER CORNER BETWEEN SECTIONS 27 AND 34,
ABOVE TOWNSHIP AND RANGE, SAID CORNER BEING MARKED BY A STONE MONUMENT, WHICH WAS ACCEPTED BY JIM LAMPORT, SURVEYOR IN 1928, AND
BY OLD SETTLERS FOR MANY YEARS;

 

THENCE FROM SAID POINT NORTH ON THE QUARTER SECTION LINE THROUGH
THE CENTER OF SAID SECTION 27, (THIS LINE BEING ASSUMED NORTH FOR THE PURPOSE OF THIS DESCRIPTION) 774.0 FEET TO A STONE MONUMENT;

 

 

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THENCE NORTH 73 DEGREES 34 MINUTES WEST, 659.6 FEET TO A STONE
MONUMENT;

 

THENCE SOUTH 03 DEGREES 45 MINUTES WEST, 1021.3 FEET TO A STONE
MONUMENT ON THE SOUTH LINE OF Said) SECTION 27;

 

THENCE NORTH 85 DEGREES 13 MINUTES EAST, 701.9 FEET ALONG SAID
SECTION LINE TO THE POINT OF BEGINNING.

  

PARCEL NO. 8:

 

A NON-EXCLUSIVE EASEMENT FOR ROADWAY AND UTILITY PURPOSES OVER,
ACROSS AND UNDER THE FOLLOWING DESCRIBED PARCEL:

 

A PORTION OF THE SOUTHWEST QUARTER OF THE SOUTHEAST QUARTER
OF SECTION 27, TOWNSHIP 17 NORTH, RANGE 5 EAST OF THE GILA AND SALT RIVER BASE AND MERIDIAN, YAVAPAI COUNTY, ARIZONA;

 

BEGINNING AT A POINT ON THE WEST LINE OF THE SOUTHWEST QUARTER
OF THE SOUTHEAST QUARTER OF SECTION 27 BEARING NORTH 01 DEGREES 29 MINUTES 54 SECONDS WEST, A DISTANCE OF 600 FEET FROM THE SOUTH
QUARTER CORNER OF SECTION 27 MARKED BY A G.L.O. BRASS CAP;

 

THENCE NORTH 01 DEGREES 29 MINUTES 54 SECONDS WEST ALONG THE
WEST LINE OF THE SOUTHWEST QUARTER OF THE SOUTHEAST QUARTER OF SECTION 27, A DISTANCE OF 180.05 FEET;

 

THENCE SOUTH 35 DEGREES 58 MINUTES 39 SECONDS EAST, A DISTANCE
OF 44.71 FEET;

 

THENCE SOUTH 0 DEGREES 48 MINUTES 45 SECONDS WEST, A DISTANCE
OF 143.31 FEET;

 

THENCE SOUTH 88 DEGREES 30 MINUTES 06 SECONDS WEST, A DISTANCE
OF 19.54 FEET TO THE PLACE OF BEGINNING.

  

PARCEL NO. 9:

 

A NON-EXCLUSIVE EASEMENT FOR ROADWAY AND UTILITY PURPOSES AS
CREATED IN BOOK 938 OF OFFICIAL RECORDS, PAGE 65, OVER, ACROSS AND UNDER THE FOLLOWING DESCRIBED PARCELS:

 

PARCEL A:

 

THE FOLLOWING DESCRIBED PORTION OF THE SOUTHWEST QUARTER OF
THE SOUTHEAST QUARTER OF SECTION 27, TOWNSHIP 17 NORTH, RANGE 5 EAST OF THE GILA AND SALT RIVER BASE AND MERIDIAN, YAVAPAI COUNTY,
ARIZONA;

 

BEGINNING AT A POINT ON THE WEST LINE OF THE SOUTHWEST QUARTER
OF THE SOUTHEAST QUARTER OF SECTION 27 BEARING NORTH 01 DEGREES 29 MINUTES 54 SECONDS WEST, A DISTANCE OF 115.84 FEET FROM THE
SOUTH QUARTER CORNER OF SECTION 27, MARKED BY A G.L.O. BRASS CAP;

 

THENCE NORTH 01 DEGREES 29 MINUTES 54 SECONDS WEST ALONG THE
WEST LINE OF THE SOUTHWEST QUARTER OF THE SOUTHEAST QUARTER OF SECTION 27, A DISTANCE OF 484.16 FEET;

 

 

    	5

    	 

     

THENCE NORTH 88 DEGREES 30 MINUTES 06 SECONDS EAST, A DISTANCE
OF 19.54 FEET;

 

THENCE SOUTH 0 DEGREES 48 MINUTES 45 SECONDS WEST, A DISTANCE
OF 484.55 FEET TO THE PLACE OF BEGINNING.

 

PARCEL B:

 

A PORTION OF THE EAST HALF OF THE SOUTHEAST QUARTER OF THE SOUTHWEST
QUARTER OF SECTION 27, TOWNSHIP 17 NORTH, RANGE 5 EAST OF THE GILA AND SALT RIVER BASE AND MERIDIAN, YAVAPAI COUNTY, ARIZONA;

 

BEGINNING AT A POINT ON THE EAST LINE OF THE SOUTHEAST QUARTER
OF THE SOUTHWEST QUARTER OF SECTION 27 BEARING NORTH 01 DEGREES 29 MINUTES 54 SECONDS WEST, A DISTANCE OF 889.73 FEET FROM THE
SOUTH QUARTER CORNER OF SECTION 27 MARKED BY A G.L.O. BRASS CAP;

 

THENCE NORTH 73 DEGREES 03 MINUTES 08 SECONDS WEST, A DISTANCE
OF 103.00 FEET TO THE TRUE POINT OF BEGINNING;

 

THENCE NORTH 73 DEGREES 03 MINUTES 08 SECONDS WEST, A DISTANCE
OF 303.41 FEET. (THE DIRECTION AND LOCATIONS OF THE ABOVE LINE DETERMINED BY STONE MONUMENTS AS CALLED FOR IN THAT CERTAIN DEED
OF CORRECTION OF RECORD IN THE OFFICE OF THE COUNTY RECORDER, YAVAPAI COUNTY, ARIZONA, IN BOOK 172 OF DEEDS, PAGE 495 THEREOF);

 

THENCE NORTH 82 DEGREES 32 MINUTES 53 SECONDS EAST, A DISTANCE
OF 67.32 FEET;

 

THENCE SOUTH 75 DEGREES 10 MINUTES 23 SECONDS EAST, A DISTANCE
OF 195.82 FEET;

 

THENCE SOUTH 35 DEGREES 58 MINUTES 39 SECONDS EAST, A DISTANCE
OF 58.16 FEET TO THE PLACE OF BEGINNING.

  

PARCEL NO. 10:

 

A NON-EXCLUSIVE EASEMENT FOR ROADWAY AND PUBLIC UTILITY PURPOSES
AS CREATED IN BOOK 1920 OF OFFICIAL RECORDS, PAGE 314, EMBRACING ALL OF THE FOLLOWING DESCRIBED PROPERTY:

 

A PARCEL OF LAND LYING IN THE SOUTHWEST QUARTER OF SECTION 27,
TOWNSHIP 17 NORTH, RANGE 5 EAST OF THE GILA AND SALT RIVER BASE AND MERIDIAN, YAVAPAI COUNTY, ARIZONA, BEING MORE PARTICULARLY
DESCRIBED AS FOLLOWS:

 

BEGINNING AT THE SOUTH QUARTER CORNER OF SECTION 27, TOWNSHIP
17 NORTH, RANGE 5 EAST;

 

THENCE SOUTH 88 DEGREES 53 MINUTES 57 SECONDS WEST, A DISTANCE
OF 612.24 FEET TO THE SOUTHEAST CORNER OF THE SOUTHWEST QUARTER OF THE SOUTHEAST QUARTER OF THE SOUTHWEST QUARTER OF SECTION 27;

 

THENCE NORTH 01 DEGREES 11 MINUTES 29 SECONDS WEST, A DISTANCE
OF 946.77 FEET TO THE TRUE POINT OF BEGINNING;

 

 

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THENCE SOUTH 85 DEGREES 55 MINUTES 21 SECONDS WEST, A DISTANCE
OF 113.99 FEET;

 

THENCE NORTH 24 DEGREES 08 MINUTES 42 SECONDS WEST, A DISTANCE
OF 61.87 FEET TO A POINT ON A CURVE HAVING A CENTRAL ANGLE OF 141 DEGREES 20 MINUTES 20 SECONDS, A RADIUS OF 131.79 FEET;

 

THENCE ALONG THE ARC OF SAID CURVE, A DISTANCE OF 50.30 FEET;

 

THENCE SOUTH 24 DEGREES 08 MINUTES 42 SECONDS EAST, A DISTANCE
OF 26.91 FEET;

 

THENCE NORTH 85 DEGREES 55 MINUTES 21 SECONDS EAST, A DISTANCE
OF 81.55 FEET;

 

THENCE SOUTH 01 DEGREES 11 MINUTES 29 SECONDS EAST, A DISTANCE
OF 50.06 FEET TO THE TRUE POINT OF BEGINNING.

 

TOGETHER WITH THE RIGHT TO IMPROVE AND MAINTAIN THE EXISTING
ROAD AND TO RECONSTRUCT AND ENLARGE THE ROAD TO UTILIZE ALL OF THE EASEMENT PROPERTY OR ANY PART THEREOF FOR ROADWAY PURPOSES.

  

PARCEL NO. 11:

 

AN EASEMENT APPURTENANT TO PARCELS 1, 2, 3, 4 AND 5 ABOVE, FOR
ROADWAY AND PUBLIC UTILITIES CREATED IN BOOK 1920, OF OFFICIAL RECORDS, PAGE 307, OVER THAT PORTION OF THE RED ROCK LOOP ROAD DESCRIBED
IN THE ATTACHMENT TO THE INSTRUMENT OF RECORD IN BOOK 915, OF OFFICIAL RECORDS, PAGES 795-803, INCLUSIVE, RECORDS OF YAVAPAI COUNTY,
ARIZONA, LYING WITHIN THE EAST ONE-HALF, WEST ONE-HALF, SOUTHEAST QUARTER, SOUTHWEST QUARTER, SECTION 27, TOWNSHIP 17 NORTH, RANGE
5 EAST OF THE GILA AND SALT RIVER BASE AND MERIDIAN, YAVAPAI COUNTY, ARIZONA.

  

EXCEPTING FROM THE ABOVE PARCELS THE FOLLOWING PROPERTY:

Lot 11, THE RETREAT AT OAK CREEK, according to Book 59 of Maps,
pages 99 through 104, inclusive, records of Yavapai County, Arizona.

 

AND

 

Lots 2, 9, 10, 12, 13, 14, 17, 18 and 19, LAMERRA, according
to Book 61 of Maps, pages 27 through 32, inclusive, records of Yavapai County, Arizona.

 

 

    	7

    	 

     

 

 

EXHIBIT F-i

 

LEGAL DESCRIPTION

 

(L’Auberge Property)

 

THE LAND REFERRED TO HEREIN BELOW IS SITUATED
IN THE COUNTY OF COCONINO,

STATE OF ARIZONA, AND IS DESCRIBED AS FOLLOWS:

 

PARCEL NO. 1:

 

A parcel of land situated in the West half of Section 8, Township
17 North, Range 6 East, of the Gila and Salt River Base and Meridian, Coconino County, Arizona, being more particularly described
as follows:

 

COMMENCING at the West quarter corner of said Section 8, as
marked by a B.L.M brass capped pipe under drain cover in sidewalk and from which the Southwest corner of said Section 8, as marked
by a B.L.M brass capped pipe in cairn, lies South 01 degrees 42 minutes 03 seconds East (basis of bearings for this description),
a distance of 2621.04 feet;

 

THENCE from said West quarter corner, North 12 degrees 54 minutes
17 seconds East (North 12 degrees 27 minutes 33 seconds East, record), a distance of 76.90 feet (76.90 feet record), to a point
on the Southeasterly right of way line of Arizona State Highway 89-A;

 

THENCE Northeasterly along said Southeasterly right of way line
being a non-tangent curve, concave to the Southeast, having a radius of 2150.00 feet (2,150.00 feet, record), a chord bearing of
North 23 degrees 04 minutes 02 seconds East and a central angle of 05 degrees 24 minutes 36 seconds (05 degrees 24 minutes 18 seconds,
record), an arc distance of 203.00 feet (203.00 feet, record), to a concrete nail with brass tag stamped “LS14184”
set at the position of a previously set cotton picker spindle with tag stamped “LS14184”;

 

THENCE continuing Northeasterly along said Southeasterly right
of way line, being a curve, concave to the Southeast, having a radius of 2150.00 feet (2,150.00 feet record), a chord bearing of
North 26 degrees 36 minutes 58 seconds East, a central angle of 01 degrees 41 minutes 17 seconds (01 degrees 41 minutes 39 seconds,
record), an arc distance of 63.35 feet (63.57 feet, record), to a concrete nail with brass tag stamped “LS14184” set
at the position of a previously set chiseled “+” in concrete;

 

THENCE departing said Southeasterly right of way line of Arizona
State Highway 89-A, South 89 degrees 51 minutes 31 seconds East (North 89 degrees 42 minutes 07 seconds East, record), a distance
of 3.74 feet to a point on the Northeasterly line of that certain tract of land acquired by the City of Sedona in December 2005
and described in Document No. 2005-3361777 of the Coconino County Recorder’s office in Coconino county, Arizona;

 

THENCE along the North line of the Orchards/L’Auberge
parcel, South 89 degrees 51 minutes 31 seconds East (North 89 degrees 42 minutes 07 seconds East, record), a distance of 212.10
feet to a 1⁄2” rebar with cap stamped “LS14184” (previously set);

 

THENCE along the Northerly line of the
Orchards/L’Auberge parcel, South 40 degrees 28 minutes 17 seconds
East (South 41 degrees 45 minutes 00 seconds East, record), a distance of 62.25 feet to the POINT OF BEGINNING;

 

 

    	 

    	 

     

THENCE South 40 degrees 28 minutes 17 seconds East (South 41
degrees 45 minutes 00 seconds East, record), a distance of 47.00 feet to a 1⁄2” rebar with tag stamped “LS14184”
(previously set);

 

THENCE North 38 degrees 57 minutes 49 seconds East, (North 38
degrees 15 minutes 00 seconds East record), a distance of 150.75 feet (152.00 feet record) to a 1⁄2” rebar with tag
stamped “LS14184” (previously set).

 

THENCE South 50 degrees 57 minutes 03 seconds East, (South 51
degrees 45 minutes 00 seconds East record), a distance of 82.00 feet (82.00 feet record) to a 1⁄2” rebar with tag stamped
“LS14184” (previously set);

 

THENCE North 57 degrees 27 minutes 57 seconds East (North 56
degrees 40 minutes 00 seconds East record), a distance of 26.55 feet (26.5 feet record) to a 1⁄2” rebar with tag stamped
“LS14184” (previously set);

 

THENCE South 32 degrees 32 minutes 03 seconds East (South 33
degrees 20 minutes 00 seconds East record), a distance of 523.60 feet (542.50 feet record) to a point in Oak Creek that lies on
the Northwesterly boundary of the “Brewer Tract”, described in Docket 510, page 496, of the Coconino County Recorder’s
Office and from which a 1⁄2” rebar with tag stamped “LS14184” previously set as a witness corner lies, North
32 degrees 32 minutes 03 seconds West, a distance of 100.00 feet;

 

THENCE South 51 degrees 44 minutes 33 seconds West (no record)
a distance of 6.59 feet (no record) to the Westerly corner of said “Brewer Tract” being a portion in Oak Creek;

 

THENCE South 54 degrees 01 minutes 27 seconds East (no record),
a distance of 19.52 feet (no record) along the Southwesterly boundary of said “Brewer Tract” to a point in Oak Creek;

 

THENCE South 52 degrees 31 minutes 27 seconds West (South 51
degrees 43 minutes 30 seconds West, record), a distance of 11.99 feet (11.40 feet record) to a point in Oak Creek;

 

THENCE South 69 degrees 02 minutes 57 seconds West (South 68
degrees 15 minutes 00 seconds West record), a distance of 166.54 feet (166.54 feet) to a point in Oak Creek;

 

THENCE South 48 degrees 22 minutes 03 seconds East (South 49
degrees 10 minutes 00 seconds East, record), a distance of 60.39 feet (60.40 feet record), to a 1⁄2” rebar with tag
stamped “PE2924” (previously set);

 

THENCE South 63 degrees 20 minutes 02 seconds West, (South 62
degrees 02 minutes 45 seconds West, record), a distance of 835.28 feet (832.38 feet record) to a point in Oak Creek that is on
the West line of said Section 8 and lies South 01 degrees 42 minutes 03 seconds East, a distance of 624.60 feet from said West
quarter corner of Section 8;

 

THENCE North 01 degrees 42 minutes 03 seconds West (North 02
degrees 30 minutes 00 seconds West, record), a distance of 447.60 feet (447.60 feet record) along said West line of Section 8 to
a 1⁄2” rebar with tag stamped “LS14184” (previously set);

 

THENCE North 38 degrees 37 minutes 57 seconds East (North 37
degrees 50 minutes 00 seconds East, record), a distance of 207.55 feet to a 1⁄2” rebar with tag stamped “LS14184”
(previously set);

 

 

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THENCE North 38 degrees 09 minutes 30 seconds East (North 37
degrees 50 minutes 00 seconds East, record), a distance of 109.23 feet to a 1⁄2” rebar with no identification (previously
found):

 

THENCE North 49 degrees 44 minutes 02 seconds East, a distance
of 94.50 feet;

 

THENCE North 37 degrees 42 minutes 35 seconds East, a distance
of 174.72 feet to the POINT OF BEGINNING.

 

EXCEPTING THEREFROM the following described property:

 

A parcel of land being a portion of “Parcel 1B”
as said “Parcel 1B” is shown and described on that certain ALTA/ACSM Land Title Survey map recorded as instrument number
3490268 in the Official Records of Coconino County, said parcel being situated in the West half of Section 8, Township 17 North,
Range 6 East of the Gila and Salt River Base and Meridian in Coconino County, Arizona, and being more particularly described as
follows:

 

COMMENCING
at the West quarter corner of said Section 8, as marked by a G.L.O. brass capped pipe under drain cover in sidewalk and from which
the Southwest corner of said Section 8, as marked by a B.L.M brass capped pipe in cairn, lies South 01°42’03”
East (basis of bearings for this description), a distance of 2621.04 feet;

 

Thence
from said West quarter corner, along the West line of the Southwest quarter of said Section 8, South 01°42’03”
East, a distance of 624.60 feet to the Southwest corner of said “Parcel 1B”;

 

Thence
along the Southerly boundary of said “Parcel 1B”, North 63°20’02”
East a distance of 579.51 feet to the POINT OF BEGINNING;

 

Thence
continuing along said Southerly boundary of “Parcel 1B”, North 63°20’02”
East a distance of 255.77 feet;

 

Thence continuing along said Southerly boundary of “Parcel
1B”, North 48°22’03” West a distance
of 60.39 feet;

 

Thence
continuing along said Southerly boundary of “Parcel 1B”, North 69°02’57”
East a distance of 32.29 feet to the most Northerly corner of the Weckerly parcel as described in Docket 1525, pages 007-009 of
the Coconino County Recorder’s Office;

 

Thence
along a prolongation of the Northeasterly boundary of said Weckerly parcel, North 54°01’29”
West a distance of 23.88 feet, more or less, to the centerline of Oak Creek as it may exist from time to time in the future;

 

Thence
along said centerline of Oak Creek, as it may exist from time to time in the future, an approximate bearing of South 65°34’01”
West a distance of 111.83 feet, more or less;

 

Thence
continuing along said centerline of Oak Creek, as it may exist from time to time in the future, an approximate bearing of South
69°31’14”
West a distance of 163.52 feet, more or less, to the intersection of said centerline of Oak Creek with the Northwesterly prolongation
of the Southwesterly boundary of the Miller parcel as described in Docket 1478, pages 378 & 378A of the Coconino County Recorder’s
Office;

 

Thence
in a reversed direction of said Northwesterly prolongation of the Southwesterly boundary of the Miller parcel, South 38°15’58”
East a distance of 98.08 feet, more or less, to the POINT OF BEGINNING.

 

 

    	3

    	 

     

PARCEL NO. 2:

 

An easement for ingress, egress and public utilities created
by instrument recorded December 22, 1982, in Docket 911, page 206, records of Coconino County, Arizona, more particularly described
as follows:

 

A strip of land 33.00 feet wide situated in the Southeast quarter
of Section 7, Township 17 North, Range 6 East, of the Gila and Salt River Base and Meridian, Coconino County, Arizona, being more
particularly defined as lying 16.50 feet on each side of the following described centerline:

 

COMMENCING at the East quarter corner of said Section 7, as
marked by a GLO brass capped pipe under drain cover in sidewalk and from which the Southeast corner of said Section 7, as marked
by a B.L.M. brass capped pipe, lies South 01 degrees 42 minutes 03 seconds East (basis of bearings for this description), a distance
of 2621.04 feet;

 

THENCE South 01 degrees 42 minutes 03 seconds East (South 02
degrees 30 minutes 00 seconds East, recorded), a distance of 261.40 feet (261.4 feet record) along the East line of said Southeast
quarter of Section 7 to the POINT OF BEGINNING of this center line (side lines of strip of land begin on said East line);

 

THENCE South 28 degrees 37 minutes 57 seconds West (South 27
degrees 50 minutes 00 seconds West record), a distance of 500.20 feet (500.2 feet record);

 

THENCE South 37 degrees 53 minutes 57 seconds West (South 37
degrees 06 minutes 00 seconds West, record), a distance of 330.00 feet (330.00 feet record) to the terminus of center
line:

 

EXCEPT therefrom all that portion thereof lying within the right
of way of Arizona Highway 89-A;

 

PARCEL NO. 3:

 

A perpetual, non-exclusive easement for ingress and egress as
set forth in that certain easement agreement recorded April 25, 2002 in instrument number 2002-3138455 and re-recorded July 18,
2005 in instrument number 2005-3332653 of Official Records, Coconino County, Arizona.

 

PARCEL NO. 4:

 

A parcel of land being a portion of the “Pacini Tract”
described in Parcel II in Docket 1711, page 863 and 864 of the Coconino County Recorders Office and situated in the West half of
Section 8, Township 17 North, Range 6 East, of the Gila and Salt River Base and Meridian, Coconino County, Arizona, said parcel
being more particularly described as follows:

 

COMMENCING at the West quarter corner of said Section 8, as
marked by a B.L.M brass capped pipe under drain cover in sidewalk and from which the Southwest corner of said Section 8, as marked
by a B.L.M brass capped pipe in cairn, lies South 01 degrees 42 minutes 03 seconds East (basis of bearings for this description),
a distance of 2621.04 feet;

 

 

    	4

    	 

     

THENCE from said West quarter corner, North 21 degrees 27 minutes
04 seconds East, a distance of 342.00 feet (North 20 degrees 32 minutes East, a distance of 342 feet, record) to a 1⁄2”
rebar with tag stamped “LS14184” set at the position of a previously set chiseled “+” in concrete (previously
set) on the Southeasterly right of way line of Arizona Highway 89-A;

 

THENCE departing said Southeasterly right of way line of Arizona
Highway 89-A South 89 degrees 51 minutes 31 seconds East, a distance of 215.83 feet (North 89 degrees 10 minutes East, a distance
of 217.50 feet record), to a 1⁄2” rebar with plastic cap stamped “LS14184” (found);

 

THENCE South 40 degrees 28 minutes 17 seconds East, a distance
of 109.25 feet (South 41 degrees 45 minutes East, a distance of 110.77 feet record) to a 1⁄2” rebar with plastic cap
stamped “LS14184” (previously set);

 

THENCE North 38 degrees 57 minutes 49 seconds East, a distance
of 150.75 feet (North 38 degrees 15 minutes East, a distance of 152.0 feet record), to a 1⁄2” rebar with tag stamped
“LS14184” (previously set) at a corner of said “Pacini Tract”;

 

THENCE along the boundary of said “Pacini Tract”
South 50 degrees 57 minutes 03 seconds East, a distance of 82.00 feet (same as record) to a 1⁄2” rebar with tag stamped
“LS14184” (found) at a corner thereof;

 

THENCE continuing along the boundary of said “Pacini Tract”
North 57 degrees 27 minutes 57 seconds East, a distance of 26.55 feet (same as record) to a 1⁄2” rebar with tag stamped
“LS14184” (found) at a corner thereof;

 

THENCE continuing along the boundary of said “Pacini Tract”,
South 32 degrees 32 minutes 03 seconds East, a distance of 5.00 feet to the POINT OF BEGINNING;

 

THENCE North 57 degrees 27 minutes 57 seconds East, a distance
of 58.00 feet to a 1⁄2” rebar with tag stamped “LS14184”;

 

THENCE North 89 degrees 27 minutes 57 seconds East, a distance
of 35.39 feet to a 1⁄2” rebar with tag stamped “LS14184”;

 

THENCE South 00 degrees 32 minutes 03 seconds East, a distance
of 163.25 feet to a 1⁄2” rebar with tag stamped “LS14184”;

 

THENCE South 32 degrees 32 minutes 03 seconds East, a distance
of 215.13 feet to a 1⁄2” rebar with tag stamped “LS14184”;

 

THENCE South 31 degrees 56 minutes 49 seconds East, a distance
of 146.28 feet to a point on the Northwesterly boundary of the “Brewer Tract” as described in Docket 510, page 496
of the Coconino County Recorder’s Office and the Southwest corner of the said “Pacini Tract” and from which a
1⁄2” rebar with brass tag stamped “LS14184” (previously set as a witness corner) bears North 32 degrees
32 minutes 03 seconds West, a distance of 100.00 feet;

 

THENCE along the Westerly boundary of the said “Pacini
Tract”, North 32 degrees 32 minutes 03 seconds West, a distance of 518.60 feet to the POINT OF BEGINNING.

 

 

    	5

    	 

     

PARCEL NO. 5:

 

INTENTIONALLY DELETED.

 

    	6

    	 

     

 

 

 

EXHIBIT F-ii

 

LEGAL DESCRIPTION

 

(Orchards Inn Property)

 

THE LAND REFERRED TO HEREIN BELOW IS SITUATED
IN THE COUNTY OF COCONINO,

STATE OF ARIZONA, AND IS DESCRIBED AS FOLLOWS:

 

 

PARCEL NO. 1:

 

A parcel of land situated in the West half of Section 8, Township
17 North, Range 6 East, of the Gila and Salt River Base and Meridian, Coconino County, Arizona, being more particularly described
as follows:

 

COMMENCING at the West quarter corner of said Section 8, as
marked by a B.L.M brass capped pipe under drain cover in sidewalk and from which the Southwest corner of said Section 8, as marked
by a B.L.M brass capped pipe in cairn, lies South 01 degrees 42 minutes 03 seconds East (basis of bearings for this description),
a distance of 2621.04 feet;

 

THENCE from said West quarter corner, North 12 degrees 54 minutes
17 seconds East (North 12 degrees 27 minutes 33 seconds East, record), a distance of 76.90 feet (76.90 feet, record) to a point
on the Southeasterly right-of-way line of Arizona State Highway 89-A;

 

THENCE Northeasterly along said Southeasterly right of way line
being a non-tangent curve, concave to the Southeast, having a radius of 2150.00 feet (2150.00 feet record)., a chord being of North
23 degrees 04 minutes 02 seconds East and a central angle of 05 degrees 24 minutes 36 seconds (05 degrees 24 minutes 18 seconds,
record), an arc distance of 203.00 feet (203.00 feet record), to a concrete nail with brass tag stamped “LS14184” set
at the position of a previously set cotton picker spindle with tag stamped “LS14184”;

 

THENCE departing said Southeasterly right of way line of Arizona
State Highway 89A, South 65 degrees 25 minutes 03 seconds East, a distance of 11.73 feet to the POINT OF BEGINNING, which lies
on the Southeasterly line of that certain tract of land acquired by the City of Sedona in December 2005 and described in Document
NO. 2005-3361777 of the Coconino County Recorder’s Office, Coconino County, Arizona;

 

THENCE along said Southeasterly line, North 24 degrees 46 minutes
32 seconds East, a distance of 23.47 feet;

 

THENCE continuing along said Southeasterly line, North 21 degrees
21 minutes 48 seconds East, a distance of 3.63 feet;

 

THENCE continuing along said Southeasterly line, North 20 degrees
52 minutes 26 seconds West, a distance of 8.33 feet;

 

THENCE continuing along said Southeasterly line, North 69 degrees
07 minutes 34 seconds East, a distance of 1.00 feet;

 

THENCE continuing along said Southeasterly line, North 19 degrees
27 minutes 50 seconds West, a distance of 6.81 feet;

 

 

    	7

    	 

     

THENCE continuing along said Southeasterly line, North 26 degrees
18 minutes 08 seconds East, a distance of 19.54 feet;

 

THENCE continuing along said Southeasterly line, South 62 degrees
51 minutes 12 seconds East, a distance of 4.07 feet;

 

THENCE continuing along said Southeasterly line, North 23 degrees
53 minutes 25 seconds East, a distance of 6.93 feet;

 

THENCE continuing along said Southeasterly line of that tract
of land acquired by the City of Sedona in December 2005, North 62 degrees 35 minutes 35 seconds West, a distance of 0.55 feet to
the North line of the Orchards/L’Auberge parcel;

 

THENCE along said North line of the Orchards/L’Auberge
parcel, South 89 degrees 51 minutes 31 seconds East (North 89 degrees 42 minutes 07 seconds East, record), a distance of 212.10
feet to a 1⁄2” rebar with cap stamped “LS14184” (previously set);

 

THENCE South 40 degrees 28 minutes 17 seconds East, (South 41
degrees 45 minutes 00 seconds East, record), a distance of 62.25 feet;

 

THENCE South 37 degrees 42 minutes 35 seconds West, a distance
of 174.72 feet; THENCE South 49 degrees 44 minutes 02 seconds West, a distance of 94.50 feet to a 1⁄2” rebar with no
identification (previously found);

 

THENCE North 31 degrees 49 minutes 11 seconds West (North 32
degrees 21 minutes 20 seconds West, record), a distance of 114.47 feet (113.94 feet record) to a 1⁄2” rebar with cap
stamped “LS 14184” (previously set);

 

THENCE North 22 degrees 35 minutes 10 seconds East (North 24
degrees 24 minutes 07 seconds East, record), a distance of 66.04 feet (65.00 feet, record) to a concrete nail with brass tag stamped
“LS14184”, previously set at the position of a previously set chiseled “+” in concrete;

 

THENCE North 65 degrees 25 minutes 03 seconds West, (North 65
degrees 34 minutes 02 seconds West, record), a distance of 65.96 feet to the POINT OF BEGINNING.

 

PARCEL NO. 2:

 

INTENTIONALLY DELETED.

 

PARCEL NO. 3:

 

An easement for overhead canopies and other purposes by or pursuant
to that certain Special Warranty Deed (In Lieu of Condemnation) recorded December 27, 2005 in Document No. 3361777, Official Records
of Coconino County, Arizona.

 

 

    	8

    	 

     

 

 

Exhibit F-iii

 

Description of Delivery and Installation
of Pre-Fabricated Cottage

 

Schulte Manufacturing has one unit of the pre-fabricated
cottages at its manufacturing fadlity in Avondale, Arizona. The unit consists of two parts and is about 600 sq. ft. Schulte has
it in the storage yard. The unit will need to be assembled on site and also there will need to be built for it the necessary utility
connections and base on which to place the cottage. There are no current arrangements to either take the unit or any plans where
to put it.

 

 

    	 

    	 

     

Exhibit Gi

 

Housing Units 414, 415, 434 & 435

280 N. Highway 89A

 

LEASE

 

SEDONA, ARIZONA

  

Landlord: Canyon Portal II, L.L.C.

 

Tenant: L'Auberge
Orchards LLC

 

Date: April 1, 2012

 

    	 

    	 

     

TABLE OF CONTENTS

 

 

	SECTION 1 – FUNDAMENTAL LEASE PROVISIONS	1
	 	 	 
	SECTION 2 – PREMISES	2
	 	 	 
	SECTION 3 – GENERAL PROVISIONS	2
	3.1	No Option	2
	3.2	Approval of Financial Statement	3
	3.3	No Co-Tenancy Requirement	3
	3.4	Name Change	3
	 	 	 
	SECTION 4 - LEASE TERMS	3
	4.1	Term	3
	4.2	Delay in Commencement	3
	4.3	Holding Over	3
	4.4	Abandonment	3
	4.5	Surrender of Premises	4
	4.6	Extension of Term	4
	 	 	 
	SECTION 5 – RENT, SECURITY DEPOSIT	4
	5.1	Rent	4
	5.2	Security Deposit	5
	5.3	(Deleted)	5
	5.4	Additional Rent	5
	 	 	 
	SECTION 6 – NO COUNTERCLAIM OR ABATEMENT OF RENT	5
	6.1	No Notice	5
	6.2	No conditional Payment	5
	 	 	 
	SECTION 7 – COMMON AREAS	6
	7.1	Use of Common Areas	6
	7.2	Parking Policy	6
	7.3	Parking Charges	6
	 	 	 
	SECTION 8 – USE OF PREMISES	6
	8.1	Use	6
	8.2	Prohibited Conduct	6
	8.3	Prescribed Conduct	7
	8.4	Operation of Premises – Intentionally Deleted	7
	 	 	 
	SECTION 9 – TENANT’S CONSTRUCTION FO IMPROVEMENTS	7
	9.1	Tenant’s Obligation	7
	9.2	Intentionally Deleted	8
	9.3	Written Approval	8
	9.4	Trade Fixtures	8

 

 

 

    	 

    	 

     

 

	SECTION 10 – TENANT OBLIGATIONS	8
	10.1	Payment by Tenant	8
	10.2	Payment by Landlord	8
	10.3	Proof of Payment	9
	10.4	Personal Property Taxes	9
	10.5	Premises Utilities	9
	10.6	Merchants Association	9
	 	 	 
	SECTION 11 – COMMON AREA MAINTENANCE. – Intentionally Deleted	9
	 	 	 
	SECTION 12 – MAINTENANCE AND REPAIRS BY TENANT	9
	12.1	Tenant’s Obligation	9
	12.2	Prohibited Acts	9
	12.3	Rights of Landlord	10
	 	 	 
	SECTION 13 – REPAIR BY LANDLORD	10
	13.1	Repair by Landlord	10
	13.2	Hazardous Materials	10
	 	 	 
	SECTION 14 – LIENS	11
	14.1	No Liens	11
	14.2	Tenant’s Obligations	11
	14.3	Removal of Liens	11
	 	 	 
	SECTION 15 – INSURANCE	12
	15.1	Project Insurance	12
	15.2	Tenant’s Property	12
	15.3	Tenant’s Operations	12
	15.4	Certificate of Insurance	13
	15.5	Insurance Companies	13
	15.6	Failure to Procure Insurance	13
	15.7	Repair	13
	 	 	 
	SECTION 16 – DAMAGE OR DESTRUCTION	14
	16.1	Tenant Obligations	14
	16.2	Lease Termination	14
	 	 	 
	SECTION 17 – EASEMENTS	14
	 	 	 
	SECTION 18 – INDEMNIFICATION	15
	18.1	By Tenant	15
	18.2	By Landlord	15
	18.3	Waiver of Claims	15

 

  

    	ii

    	 

     

 

	SECTION 19 – ASSIGNMENT AND SUBLETTING	16
	19.1	Landlord Consent	16
	19.2	In Writing	16
	19.3	Transfer Limitation	16
	19.4	Deleted	17
	 	 	 
	SECTION 20 – SUBJECT TO MASTER LEASE	17
	 	 	 
	SECTION 21 – DEFAULTS BY TENANT	17
	21.1	Event of Default	17
	21.2	Re-Enter of Premises	18
	21.3	Lease Termination	18
	21.4	Reletting	18
	21.5	Survival of Liability	19
	21.6	Cumulative Remedies	19
	21.7	Sublessee Defaults	20
	21.8	Repetitive Rent Payment Defaults	20
	21.9	Cure Period	20
	21.10	Late Charges	20
	 	 	 
	SECTION 22 – CONDEMNATION	21
	 	 
	SECTION 23 – TENANT’S WAIVER OF STATUTORY RIGHTS	21
	 	 
	SECTION 24 – WAIVER OF PERFORMANCE	21
	 	 
	SECTION 25 – REMEDIES CUMULATIVE	21
	 	 
	SECTION 26 – CONVEYANCE BY LANDLORD	22
	 	 
	SECTION 27 – NO PERSONAL LIABILITY TO LANDLORD	22
	 	 
	SECTION 28 – ATTORNEYS’ FEES	22
	 	 
	SECTION 29 – PROVISIONS SUBJECT TO APPLICABLE LAW	22
	 	 
	SECTION 30 – RIGHT TO CURE TENANT’S DEFAULTS	22
	 	 
	SECTION 31 – NOTICES	23
	 	 
	SECTION 32 – SIGNS	23
	 	 
	SECTION 33 – LANDLORD’S INSPECTIONS	23
	33.1	Inspection	23
	33.2	Presenting for Sale or Lease	24

 

  

    	iii

    	 

     

 

	SECTION 34 – ESTOPPEL CERTIFICATE	24
	 	 
	SECTION 35 – WAIVER OF TRIAL BY JURY	24
	 	 
	SECTION 36 – RECORDING	25
	 	 
	SECTION 37 – SUBORDINATION	25
	 	 
	SECTION 38 – MISCELLANEOUS	25
	38.1	Definition of Tenant	25
	38.2	Tenant	25
	38.3	Gender and Number	25
	38.4	Modifications and Waivers	26
	38.5	Implied Warranties	26
	38.6	Binding Effect	26
	38.7	Severability	26
	38.8	Governing Law and Jurisdiction	26
	38.9	Entire Agreement	26
	38.10	Time is of the Essence	27
	38.11	Brokers	27

 

 

    	iv

    	 

     

CANYON PORTAL II, L.L.C.

LEASE

 

This Lease is made
between Landlord and Tenant (defined below) in accordance with the Second Amended Development Agreement recorded as Document 3555971
in the Official Records of Coconino County, Arizona on March 15, 2010 ("DA"), and the Second Amended Land Use Restriction
Agreement recorded as Document 3555972 in the official Records of Coconino County, Arizona on March 15, 2010 (LURA"). Landlord
hereby expressly consents to and acknowledges the use of Units 414, 415, 434, 435 as Affordable Housing Units in accordance with
the terms of conditions of the DA and LURA.

 

Further, Tenant has
previously constructed and has been using Units 414, 415, 434 and 435 for Affordable Housing since May 31, 2010. Landlord and Tenant
desire to execute this Lease in order to memorialize the obligations of Tenant under the LURA and DA, and to commit Landlord to
the use of Units 414, 415, 434 and 435 for the term of the LURA and DA.

 

SECTION 1 - FUNDAMENTAL LEASE PROVISIONS.

 

	Landlord:	Canyon Portal II, L.L.C., an Arizona limited liability company
	 	 
	Tenant:	L'Auberge Orchards LLC, an Arizona limited liability company, which is also a party to the DA and LURA defined above, and is obligated to lease these units upon the terms and conditions of the DA and LURA and this Lease.
	 	 
	Trade Name:	N/A

 

	Lease Term:	Commencement Date:	April 1, 2012
	 	 	 
	 	Termination Date:	March 31, 2032
	 	 	 
	 	Rent Commencement Date:	April 1, 2012

 

	Premises:	4 hotel room units known as 414, 415, 434 and 435 further reflected on Exhibit A.

 

	Minimum Monthly Base Rental: 	Tenant shall pay to Landlord Ten Thousand Dollars ($10,000.00) on April 1, 2012. Beginning May 1, 2012 the Minimum Monthly Base Rental shall be Two Thousand Dollars ($2,000.00) for the period of May 1, 2012 through December 31, 2012. Thereafter, Rent shall be adjusted in accordance with Paragraph 5.1B.

 

Security Deposit:     None Required

 

    	 

    	 

     

	Address of Landlord:	Canyon Portal II, L.L.C.
	 	6900 E. Camelback Road, #915
	 	Scottsdale, AZ 85251
	 	Telephone: (480) 941-0221 
	 	Fax: (480) 990-9093
	 	 
	Address of Tenant:	L'Auberge Orchards, LLC 
	 	301 L'Auberge Lane 
	 	Sedona, AZ 86336 
	 	Telephone: (928) 204-4313
	 	Fax: (928) 282-1064
	 	 
	Only Permitted Uses:	Construction of two (2) efficiency apartments to be used as rental housing in accordance with the LURA and DA.
	 	 
	Guarantors:	None

 

The foregoing Fundamental
Lease Provisions are an integral part of this Lease, and each reference in the body of the Lease to any Fundamental Lease Provision
shall be construed to incorporate all of the terms set forth above with respect to such Provisions.

 

SECTION 2 - PREMISES.

 

Subject to the conditions
set forth herein, Landlord hereby leases to Tenant the Premises. A site plan showing the boundaries of the Premises and its relative
location within a larger commercial development comprised of four elements including the Trading Post Shops, Canyon Portal Shops,
North Retail Building, and Orchards (the "Project") is attached hereto as Exhibit A. Tenant's acceptance of the Premises
and Agreement to the terms of this Lease are not conditioned upon any representation by Landlord of the number of square feet in
the Premises. TENANT ACKNOWLEDGES THAT IT HAS INSPECTED THE PREMISES, IS FAMILIAR WITH ITS CONDITION AND ACCEPTS THE PREMISES IN
ITS PRESENT CONDITION "AS IS." EXCEPT AS EXPRESSLY SET FORTH IN THIS LEASE, LANDLORD HAS MADE NO REPRESENTATIONS OR WARRANTIES
CONCERNING THE PREMISES OR THE PROJECT.

 

SECTION 3 - GENERAL PROVISIONS.

 

3.1           No
Option. The submission of this Lease by Landlord, its agent or representative for examination or execution by Tenant does not
constitute an option or offer to lease the Premises upon the terms and conditions contained herein or a reservation of the Premises
in favor of Tenant, it being intended hereby that this Lease shall become binding upon Landlord only upon Landlord's delivery to
Tenant of a fully executed counterpart hereof.

 

    	2

    	 

     

3.2           Approval
of Financial Statement. This Lease is subject to Landlord's and Landlord's Lender's approval of a current financial statement
of Tenant. Tenant agrees to execute any and all documents Landlord's Lender may require and provide Landlord and Landlord's Lender
with credit and financial information as requested.

 

3.3           No
Co-Tenancy Requirement. Landlord reserves the right to effect such tenancies in the Project as Landlord, in the exercise of
its sole business judgment, shall determine to best promote the interest of the Project. Tenant is not relying on the fact, nor
does Landlord represent, that any specific tenant or kind of tenant or number of tenants shall, during the term of this lease,
occupy any space in the Project.

 

3.4           Name
Change. Landlord reserves the right to change the name of the Project from time to time during the term of this Lease.

 

SECTION 4 - LEASE TERM 

 

4.1           Term.
The term of this Lease (herein called the "Lease Term" or the "Term") shall commence on the Commencement Date
unless the Term is terminated sooner or extended as hereinafter provided.

 

4.2           Delay
in Commencement. If Landlord, for any reason whatsoever, cannot deliver possession of the Premises to Tenant at the commencement
of the Lease Term, this Lease shall not be void or voidable, nor shall Landlord be liable for any loss or damage resulting therefrom.
In the event of a delay in possession; however, there shall be a proportionate reduction of rent covering the period between the
commencement of the Lease Term and the time when Landlord can deliver possession of the Premises. Notwithstanding the foregoing,
no delay caused by the action or inaction of Tenant or Tenant's agents shall result in a reduction of rent.

 

4.3           Holding
Over. If Tenant, upon expiration or termination of this Lease, either by lapse of time or otherwise, remains in possession
of the Premises with Landlord's written consent, but without a new lease reduced to writing and duly executed, Tenant shall be
deemed to be occupying the Premises as a tenant from month to month, subject to all covenants, conditions and provisions of this
Lease. If Tenant remains in possession without Landlord's written consent, Tenant shall be deemed to be in wrongful hold over and
shall be subject to all the rights and remedies provided to Landlord under this Lease and by law, including but not limited to
forcible entry and detainer actions or other eviction processes. During any hold over period, whether with consent or wrongful,
the monthly rent shall be two hundred percent (200%) of Tenant's monthly rent payable during the last month of the Term of this
Lease.

 

4.4           Abandonment.
If Tenant, prior to the expiration of this Lease, relinquishes possession of the Premises without Landlord's written consent, such
relinquishment shall be deemed to be an abandonment of the Premises and an Event of Default under this Lease.

 

    	3

    	 

     

4.5          Surrender
of Premises. Upon any termination of this Lease for any reason, Tenant shall immediately surrender possession of the Premises
to Landlord in good and tenantable repair, reasonable wear and tear excepted, and shall surrender all keys and all copies of such
keys for the Premises to Landlord at the place then fixed for the payment of rent or other agreed upon location.

 

4.6          Extension
of Term. None

 

SECTION 5 - RENT. SECURITY DEPOSIT.

 

5.1          Rent.

 

A.           Tenant
shall pay to Landlord the Minimum Annual Base Rental set forth in Section 1 of this Lease in twelve (12) equal monthly installments
during each Lease Year, in advance, on the first day of each calendar month. The Minimum Annual Base Rental and Additional Charges
hereinafter provided for shall be paid in lawful money of the United States to Landlord at its address or at such other place as
Landlord may from time to time designate in writing.

 

B.           The
rent provided for in this Section 5.1 shall be subject to adjustment as described herein commencing January 1, 2013. The base for
computing the adjustment is the Consumers' Price Index for All Urban Consumers, United States Cities Average published by the United
States Department of Labor, Bureau of Labor Statistics (the "Index"), which is in effect on the date of the commencement
of the first day of the previous Lease year ("Beginning Index"). For example, the adjustment for year two would be based
on the Index for the first day of Lease year one. The Index published most immediately preceding the Adjustment Date in question
("Extension Index") is to be used in determining the amount of the adjustment. If the Extension Index has increased over
the Beginning Index, the base monthly rent for the following year shall be set by multiplying the base monthly rent for the previous
year, e.g., for the 12th Lease month, by a fraction, the numerator of which is the Extension Index and the denominator
of which is the Beginning Index. However, the adjustment to the rent shall be no less than three percent (3%) compounded per annum
of the base monthly rent provided in this Lease. As an example, if year one monthly rent is $1,000.00 and the three percent (3%)
is applicable each year, then monthly rent for years two through five would be: year two $1,030.00; year three - $1,060.90; year
four - $1,092.73; and year five $1,125.52.

 

If the Index is changed
so that the base year differs from that in effect when the Term commences, the Index shall be converted in accordance with the
conversion factor published by the United States Department of Labor, Bureau of Labor Statistics. If the Index is discontinued
or revised during the Term, such other government index or computation with which it is replaced shall be used in order to obtain
substantially the same result as would be obtained if the Index had not been discontinued or revised.

 

    	4

    	 

     

C.           Monthly
rent for the first month shall be paid on the date the Term commences. Monthly rent for any partial month shall be prorated at
the rate of one-thirtieth (1/30) of the monthly rent per day.

 

D.           All
rental amounts are "net rent to Landlord. All Additional Charges (as described in this Lease) shall be deemed rent whether
or not expressly designated as such, and shall be paid in addition to the Minimum Annual Base Rental at the times and in the manner
provided for in this Lease.

 

5.2.         Security
Deposit. None Required.

 

5.3          (Deleted).

 

5.4          Additional
Rent. In the event any additional usable square footage is acquired by the Tenant in its Premises due to alterations of or
improvements made on the original Premises (by way of example, the addition of a loft), the Minimum Annual Base Rent payable by
Tenant to Landlord under this Lease shall be increased, on a proportionate basis, to include the additional square footage utilized
by the Tenant.

 

SECTION 6 - NO COUNTERCLAIM OR ABATEMENT
OF RENT.

 

6.1          No
Notice. Except as expressly provided herein, monthly rental and Additional Charges and all other sums payable by Tenant shall
be paid without notice, demand, counterclaim, setoff, recoupment, deduction or defense of any kind or nature and without abatement,
suspension, deferment, diminution or reduction. Except as expressly provided herein, Tenant waives all rights now or hereafter
conferred by statute or otherwise to quit, terminate or surrender this Lease or the Premises or any part thereof and to
any abatement, suspension, deferment, diminution or reduction of any sum payable by Tenant to Landlord.

 

6.2          No
Conditional Payment. NO PAYMENT BY TENANT OR RECEIPT BY LANDLORD OF A LESSER AMOUNT THAN THE TOTAL OF ALL SUMS DUE HEREUNDER
SHALL BE DEEMED TO BE OTHER THAN AN ACCOUNT OF THE EARLIEST STIPULATED RENT, NOR SHALL ANY ENDORSEMENT OR STATEMENT ON ANY CHECK,
OTHER PAYMENTS OR ANY ACCOMPANYING LETTER BE DEEMED AS ACCORD AND/OR SATISFACTION AND LANDLORD MAY ACCEPT SUCH CASH AND/OR NEGOTIATE
SUCH CHECK OR PAYMENT WITHOUT PREJUDICE TO LANDLORD'S RIGHT TO RECOVER THE BALANCE OF SUCH RENT OR PURSUE ANY OTHER REMEDY PROVIDED
IN THIS LEASE OR OTHERWISE, REGARDLESS OF WHETHER LANDLORD MAKES ANY NOTATION ON SUCH INSTRUMENT OF PAYMENT OR OTHERWISE NOTIFIES
TENANT THAT SUCH ACCEPTANCE, CASHING OR NEGOTIATION OF SUCH PAYMENT IS WITHOUT PREJUDICE TO ANY OF LANDLORD'S RIGHTS. TENANT SPECIFICALLY
WAIVES THE PROVISIONS OF A.R.S. 47-1207.

 

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SECTION 7 - COMMON AREAS.

 

7.1          Use
of Common Areas. All facilities furnished by Landlord in the Project and designated for the general common use of occupants
of the Project, including Tenant hereunder, its officers, agents, employees and customers, shall at all times be subject to the
exclusive control and management of Landlord. Landlord shall have the right, from time to time, to change the area, level, location
and arrangement of parking areas and other Common Area facilities and to make all rules and regulations pertaining to and necessary
for the proper operation and maintenance thereof. Landlord shall have the exclusive right at any and all times to close any portion
of the Common Areas for the purpose of making repairs, changes or additions thereto; may change the size, area or arrangement of
the Common Areas; and may enter into agreements as Landlord deems appropriate for parking and ingress or egress.

 

7.2          Parking
Policy. There will be reserved for Tenant two (2) parking spaces which are exclusively reserved on a 24 hour a day basis.

 

7.3          Parking
Charges. Landlord will establish a reasonable schedule of fees for all parking spaces in the Project in order to provide parking
for tenants, tourists and periodic visitors to the Project. Notwithstanding anything contained herein to the contrary, Landlord
has the right to meter the parking lot of the Project and charge an hourly fee to anyone who parks a vehicle in the lot. Landlord
reserves the right to regulate the parking at the Project to ensure that the parking lot is used on a long term basis by customers
of the Project and not tenants, employees, or the general public.

 

SECTION 8 - USE OF PREMISES.

 

8.1          Use.
Tenant shall use the Premises solely for the Permitted Uses set forth in the Fundamental Lease Provisions and not for any other
purpose. Tenant shall not use or permit the Premises to be used in violation of the laws, ordinances, regulations and requirements
of the United States, the State of Arizona, Coconino County, the City of Sedona or any subdivision or department thereof or any
other authority or agency having jurisdiction over the Premises or the Project.

 

8.2          Prohibited
Conduct. Except by prior written consent of Landlord, Tenant shall not:

 

A.           Use
or operate any machinery that, in Landlord's opinion, is harmful to the Premises or the Project or disturbing to other tenants
in the building of which the Premises is a part; use any loud speakers, televisions, stereos, radios or other devices in a manner
so as to be heard or seen outside the Premises.

 

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B.           Do
or suffer to be done any act, matter or thing objectionable to the fire, casualty or liability insurance carriers whereby any insurance
now in force or hereafter to be placed on the Premises or the Project, or any part thereof, shall become void or suspended, or
whereby the same shall be rated as a more hazardous risk than at the date when Tenant receives possession of the Premises. In case
of a breach of this covenant, in addition to all other remedies of Landlord hereunder, Tenant agrees to pay to Landlord as additional
rent any and all increase or increases of premiums on insurance carried by Landlord on the Premises or the Project.

 

C.           Do
or cause to be done any act, matter or thing in violation of any federal, state, county or local law, statute, regulation, rule
or ordinance.

 

8.3          Prescribed
Conduct. At all times throughout the Lease Term, Tenant shall:

 

A.           Comply
with any and all requirements of any of the constituted public authorities and with the terms of any state or federal statute or
local ordinance or regulation applicable to Tenant or its use, safety, cleanliness or occupation of the Premises, and save Landlord
harmless from penalties, fines, costs, expenses or damages resulting from Tenant's failure to do so.

 

B.           Give
Landlord prompt written notice of any accident, fire, pest infestation, or damage occurring on or to the Premises.

 

C.           Load
and unload goods at such times in the areas and through such entrances as may be designated for "Delivery" by Landlord.
Such trailers or trucks shall not be permitted to remain parked overnight in any area of the Project, whether loaded or unloaded.
Designated fire lanes shall not be used for the loading or unloading of merchandise, parking or standing of running vehicles at
any time. The unlawful use of such fire lanes may result in the towing of the offending vehicle and subject the owner or user thereof
to all applicable fines established by the City of Sedona and/or Landlord.

 

D.           Comply
with all reasonable rules and regulations of Landlord in effect at the time of the execution of this Lease or at any time or times,
and from time to time, promulgated by Landlord which Landlord, in its sole discretion, shall deem necessary in connection with
the Premises or the Project including but not limited to both the operation of Tenant's business during certain minimum days and
hours.

 

8.4          Operation
of Premises - Intentionally Deleted.

 

SECTION 9 - TENANT'S CONSTRUCTION OF IMPROVEMENTS.

 

9.1          Tenant's
Obligation.      Tenant did construct two (2) efficiency apartments in accordance with the LURA and
the DA.

 

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9.2           Intentionally
Deleted.

 

9.3           Written
Approval. Tenant shall not make or cause to be made any alterations, additions or improvements to the Premises, without first
obtaining Landlord's written approval and consent. Tenant shall present to Landlord plans and specifications for such work at the
time approval is sought. Landlord may condition its approval upon the requirement that Tenant, or its contractor, secure and bear
the cost of a labor and materials payment bond. All alterations, improvements, additions and fixtures made or installed by Tenant
shall remain upon the Premises at the expiration or earlier termination of this Lease and shall become the property of Landlord.

 

9.4           Trade
Fixtures. Tenant shall not cut or drill into or secure any trade fixtures, apparatus or equipment of any kind to any part of
the Premises without first obtaining the written consent of Landlord, which shall not be unreasonably withheld. All furnishings,
equipment and machines installed by Tenant and that are not trade fixtures in the Premises shall remain the property of Tenant
subject to any lien provided Landlord by law and shall be removed at the expiration or earlier termination of this Lease, or any
renewal or extension thereof; provided, Tenant shall not at such time be in default under any covenant or agreement contained in
this Lease and provided further that in the event of such removal, Tenant shall promptly restore the Premises to its original order
and condition. Any such furnishings, trade fixtures, equipment and machines not removed at or prior to such termination of this
Lease shall be and become the property of Landlord.

 

SECTION 10 - TENANT OBLIGATIONS.

 

10.1         Payment
by Tenant. Tenant shall pay and discharge punctually as and when the same shall become due and payable, each and every cost,
expense and obligation of every kind and nature, foreseen or unforseen, arising out of the possession, operation, maintenance,
alteration, repair, rebuilding, use or occupancy of the Premises. Tenant shall also pay and discharge punctually, as and when the
same shall become due and payable without penalty, personal property, business, occupation and occupational license taxes, water,
sewer, electricity and telephone charges and fees.

 

10.2         Payment
by Landlord. Tenant shall not be required to pay or reimburse Landlord for (i) any local, state or federal capital levy, franchise
tax, revenue tax, income tax, or profits tax of Landlord unless and to the extent such levy, tax or imposition is in lieu of or
a substitute for any other levy, tax or imposition now or later in existence upon or with respect to the Premises which, if such
other levy, tax or impostion were in effect, would be payable by Tenant under the provisions hereof; (ii) any estate, inheritance,
devolution, succession or transfer tax which may be imposed upon or with respect to any transfer (other than taxes in connection
with a conveyance by Landlord to Tenant) of Landlord's interest in the Premises; or (iii) any lien not of record as of the Commencement
Date arising from the unilateral acts or omissions of Landlord and unrelated to a default of Tenant under this Lease.

 

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10.3         Proof
of Payment. Tenant, upon Landlord's request, shall furnish to Landlord within thirty (30) days thereafter proof of the payment
of any obligation to be paid by Tenant.

 

10.4         Personal
Property Taxes. Tenant shall be responsible for and shall pay before delinquency all taxes levied or assessed against any leasehold
interest or personal property of any kind owned or placed in, upon or about the Premises by Tenant. Tenant hereby agrees to protect
and hold harmless Landlord and the Premises from any liability for Tenant's share of any and all such taxes, assessments and charges
together with any interest, penalties or other charges thereby imposed, and from any sale or other proceedings to enforce payment
thereof, and to pay all such taxes, assessments and charges before delinquency and before same become a lien.

 

10.5         Premises
Utilities. Landlord pays utilities for the property, which average approximately Five Hundred Dollars ($500.00) per month per
unit. In no event shall Landlord be liable for any interruption or failure in the supply of any utilities to the Premises.

 

10.6         Merchants
Association. Not Applicable

 

SECTION 11 - COMMON AREA MAINTENANCE.
- Intentionally Deleted

 

SECTION 12 - MAINTENANCE AND REPAIRS
BY TENANT.

 

12.1         Tenant's
Obligation. Tenant shall keep and maintain in good order, condition and repair (including any such replacement, periodic painting
and restoration as is required for that purpose) the Premises and every part thereof and any and all appurtenances thereto wherever
located, including but not limited to, the exterior and interior portion of all doors, door checks, door locks, windows, plate
glass, store front, all plumbing and sewage facilities within the Premises, all alterations, improvements and installations made
by Tenant and any repairs required to be made due to burglary or other illegal entry into the Premises. Tenant shall maintain and
bear the expense of the light fixtures and bulbs, air-conditioning unit and filters, heating unit or furnace, janitorial services,
interior pest control, and the like.

 

12.2         Prohibited
Acts. Tenant shall not cause or permit accumulation of any debris or extraneous matter on the roof of the Premises and will
be responsible for any damage caused thereto by any acts of Tenant, its agents, servants, employees or contractors. Tenant shall
place any rubbish, broken down boxes, trash or other excess matter only in such containers as are authorized from time to time
by Landlord; keep the Premises (including all exterior surfaces and both sides of all glass) clean, orderly, sanitary and free
from objectionable odors and from insects, vermin, and other pests; and keep the outside areas and sidewalks immediately adjoining
the Premises clean and free from empty boxes, trash of any kind, ice and any other obstructions or safety hazards.

 

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12.3         Rights
of Landlord. If Tenant refuses or fails to commence and complete repairs or maintenance required herein promptly and adequately,
Landlord may, but shall not be required to, make and complete the repairs or perform the maintenance. The cost of such repairs
or maintenance shall be paid immediately by Tenant to Landlord as additional rent upon demand.

 

SECTION 13 - REPAIR BY LANDLORD.

 

13.1         Repair
by Landlord. Landlord shall keep and maintain the foundation, exterior walls, floors and roof of the building in which the
Premises are located exclusive of doors, door frames, door checks, door locks, windows and window frames located in exterior building
walls. Landlord shall not, however, be required to make any such repairs when such repairs are the result of misuse or neglect
by Tenant, its agents, employees, invitees, licensees or contractors. Any repairs required to be made by reason of such Tenant
misuse or neglect shall be the responsibility of Tenant, the above provisions to the contrary notwithstanding. Except as provided
herein, Landlord shall have no obligation to alter or modify the Premises, or any part thereof, or to repair and maintain any plumbing,
heating, electrical, air-conditioning or other mechanical installation in the Premises. Under no circumstances shall Landlord be
obligated to repair, replace or maintain any plate glass or door or window glass no matter what the cause.

 

13.2         Hazardous
Materials. Exclusive of Hazardous Materials normally associated with Tenant's permitted use, if any, Tenant covenants and agrees
not to use, generate, release, manage, treat, manufacture, store, or dispose of, on, under or about, or transport to or from (any
of the foregoing hereinafter a "Use") the Premises any Hazardous Materials (other than "De Minimis" amounts
(as defined below)). Tenant further covenants and agrees to pay all costs and expenses associated with enforcement, removal, remedial
or other governmental or regulatory actions, agreements or order threatened, instituted or completed pursuant to any Hazardous
Materials Laws, and all audits, tests, investigations, cleanup, reports and other such items incurred in connection with any efforts
to complete, satisfy or resolve any matters, issues or concerns, whether governmental or otherwise, arising out of or in any way
related to the Use of Hazardous Materials in any amount by Tenant, its employees, agents, invitees, subtenants, licensees, assignees
or contractors. For purposes of this Lease (I) the term "Hazardous Materials" shall include but not be limited to asbestos,
urea formaldehyde, polychlorinated biphenyls, automotive and petroleum products and byproducts (including, without limitation,
gasoline, diesel and other fuels, new, used and recycled oil, grease, brake fluid, antifreeze, and other automotive fluids installed
in or recovered from service vehicles or otherwise, and any other fuel additive, derivative, lubricant or byproduct generated,
stored or used in Tenant's business operation or otherwise occurring), pesticides, radioactive materials, hazardous wastes, toxic
substances and any other related or dangerous toxic or hazardous chemical, material or substance defined as hazardous or regulated
or as a pollutant or contaminant in, or the use of or exposure to which is prohibited, limited, governed or regulated by, any Hazardous
Materials Laws; (ii) the term "De Minimis" amounts shall mean, with respect to any given level of Hazardous Materials,
that such level or quantity of Hazardous Materials in any form or combination of forms (a) does not constitute a violation of any
Hazardous Materials Laws; and (b) is customarily employed in, or associated with, similar retail projects in Coconino County, Arizona;
and (iii) the term "Hazardous Materials Laws" shall mean any federal, state, county, municipal, local or other statute,
law, ordinance or regulation now or hereafter enacted which may relate or legislate the protection of human health or the environment,
including but not limited to the Comprehensive Environment Response, Compensation and Liability Act of 1980, 42 U.S.C. Section
9601, et seq.; the Hazardous Materials Transportation Act, 49 U.S.C. Section 1801, et seq.; the Resource Conservation and
Recovery Act, 42 U.S.C. Section 6901, et seq.; the Federal Water Pollution Control Act, 33 U.S.C. Section 1251, et leg.;
the Toxic Substances Control Act of 1976, 15 U.S.C. Section 2601, et seq.; Ariz. Rev. Stat. Ann. Title 49 (The "Arizona
Environmental Quality Act of 1986"); and any rules, regulations or guidelines adopted or promulgated pursuant to any of the
foregoing as they may be adopted, amended or replaced from time to time.

 

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SECTION 14 - LIENS.

 

14.1         No
Liens. Tenant shall have no authority to do any act or make any contract which may create or be the basis for any lien, mortgage
or other encumbrance upon any interest of Landlord in the Premises or which would cause any document to be recorded against the
Premises or the Project. Should Tenant cause any construction, alterations, rebuildings, restorations, replacements, changes, additions,
improvements or repairs to be made on the Premises, or cause any labor to be performed or material to be furnished thereon, therein
or thereto, neither Landlord nor the Premises shall under any circumstances be liable for the payment of any expense incurred or
for the value of any work done or material furnished, and Tenant shall be solely and wholly responsible to contractors, laborers
and materialmen for performing such labor and furnishing such material.

 

14.2         Tenant's
Obligations. The initial and any subsequent alterations or improvements made by Tenant to the Premises must be paid for by
Tenant when such alterations or improvements are made. Nothing in this Lease shall be construed to authorize Tenant, or any person
dealing with or under Tenant, to charge the rents of the Premises, or the property and buildings of which the Premises form a part,
or the interest of Landlord in the state of the Premises, with a mechanics' lien or encumbrance of any kind, and under no circumstances
shall Tenant be construed to be the agent, employee or representative of the Landlord in the making of any such improvements or
alterations to the Premises.

 

14.3         Removal
of Liens. If, because of any act or omission (or alleged act or omission) of Tenant, any mechanic's, materialman's, or other
lien, charge or order for the payment of money shall be filed or recorded against the Premises or against Landlord (whether or
not such lien, charge or order is valid or enforceable as such), Tenant shall, at its own expense, either cause the same to be
discharged of record pursuant to A.R.S. §33-1004, or otherwise cause such discharge, within ten (10) days after Tenant shall
have received notice of the filing thereof, or Tenant may, within such period, furnish to Landlord a bond satisfactory to Landlord
against such lien, charge or order, in which case Tenant shall have the right in good faith to contest the validity or amount thereof.

 

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SECTION 15 - INSURANCE.

 

15.1        Project
Insurance. Landlord bears the risk of and may insure as a Common Area Expense as practical or as required by Landlord's Lender,
the operation of the Project as a whole or the common areas thereof. Such insurance may include, but is not limited to, general
liability, umbrella excess liability, bodily injury, public liability, property damage liability, fire and extended coverage in
amounts not less than eighty percent (80%) of the replacement cost of the Project, sign insurance and the like in coverage
limits selected by Landlord. Tenant shall pay to Landlord its "Proportionate Share" of such insurance as provided in
Section 11 above.

 

15.2        Tenant's
Property. Tenant agrees that all property owned by it in, on, or about the Premises shall be at the sole risk and hazard of
the Tenant. Landlord shall not be liable or responsible for any loss or damage to Tenant, or anyone claiming under or through Tenant,
or otherwise, whether caused by or resulting from a peril required to be insured hereunder, or from water, gas leakage, plumbing,
electricity or electrical apparatus, pipe or apparatus of any kind, the elements or other similar or dissimilar causes, and whether
or not originating in the Premises or elsewhere, irrespective of whether or not Landlord may be deemed to have been negligent with
respect thereto, and provided such damage or loss is not the result of any intentional and wrongful act of Landlord. Tenant shall
require all policies of risk insurance carried by it on its property in the Premises to contain or be endorsed with the provision
in and by which the insurer designated therein shall waive its right of subrogation against Landlord.

 

15.3        Tenant's
Operations. All operations conducted by Tenant shall be at Tenant's sole risk. In addition, Tenant shall procure insurance
for its operations as follows:

 

A.           Tenant
shall keep in force at its own expense public liability insurance and comprehensive general liability insurance, including contractual
liability insurance sufficient to cover all phases and aspects of the operation and conduct of its business, with minimum limits
of $2,000,000.00 on account of bodily injuries to or death of one person and $3,000,000.00 on account of bodily injuries to or
death of more than one person as a result of any one accident or disaster, and $2,000,000.00 as a result of damage to property.

 

B.           Tenant
shall keep and maintain in force during the Term hereof, plate glass insurance upon windows and doors in the Premises as required
by Landlord unless Landlord maintains such insurance on behalf of all Tenants and treats it as a Common Area Expense.

 

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15.4         Certificate
of Insurance. Tenant shall provide annually to Landlord a Certificate of Insurance listing Landlord as an additional named
insured under the Tenant's policy of insurance.

 

15.5.        Insurance
Companies. The policies affording the insurance required by this Lease shall be with companies (rated A-[minus] VII or better,
A. M. Best's Key Rating Guide) authorized to do business in the State of Arizona and shall be in a form reasonably satisfactory
to Landlord, shall provide replacement cost coverage, shall name Landlord as an additional insured, and shall provide for payment
of loss thereunder to Landlord and Tenant as their interests may appear. The policies or certificates evidencing such insurance
shall be delivered to Landlord on or before the Commencement Date and renewals thereof shall be delivered to Landlord at least
thirty (30) days prior to the expiration dates of the respective policies. Alternatively, the insurance required by this Section
15 may be provided under a blanket policy to the Tenant's existing insurance policy.

 

15.6.        Failure
to Procure Insurance. In the event Tenant shall fail to procure insurance required under this Lease or fail to maintain the
same in force continuously during the Term, or any extension thereof, Landlord shall be entitled to procure such insurance and
Tenant shall, upon demand, immediately reimburse Landlord for such premium expense or Landlord may declare Tenant in default under
this Lease.

 

15.7         Repair.
In the event of loss under any such policy or policies, Tenant shall promptly proceed with the repair and restoration of the damaged
or destroyed improvements in accordance with Section 16 of this Lease. The insurance proceeds, if less than $20,000.00, shall be
paid to Tenant for application to such repair, restoration or remediation, so long as (a) Tenant is not then in default under this
Lease, and (b) Tenant expressly covenants in writing with Landlord to expend such funds for the repair, restoration or remediation
of the Premises and the improvements therein, and to furnish Landlord with documentation evidencing such expenditure of funds for
work and improvements incorporated in the Premises within thirty (30) days following completion of such repair, restoration or
remediation. If the insurance proceeds exceed $20,000.00, the same shall be paid to and held in trust by the Landlord pursuant
to Section 16 of this Lease. All insurance proceeds described in this Section 15.7 shall be paid upon architects' certificates
and contractors', subcontractors' and materialmen's waivers of lien for the cost and expense of repair, restoration or remediation
of the damage. If at any time such insurance proceeds shall be insufficient to pay fully the cost of completion of such repair,
restoration or remediation, Tenant shall upon demand of Landlord pay a sufficient portion of such cost so that it shall appear
to the reasonable satisfaction of Landlord that the amount of insurance money in the hands of Tenant or Landlord, as applicable,
shall at all times be sufficient to pay for the completion of the repairs, restoration or remediation free and clear of all liens.
Upon the completion of the repairs, restoration or remediation, free and clear of all liens, any surplus of insurance monies shall
be paid to Tenant, provided that Tenant is not then in default hereunder. In the event that this Lease shall have been terminated
for any default of Tenant under any of the terms and provisions contained in this Lease, all proceeds of insurance in the hands
of Tenant or Landlord and all claims against insurers shall be and become the absolute property of Landlord.

 

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SECTION 16 - DAMAGE OR DESTRUCTION.

 

16.1         Tenant
Obligations. In the event of damage to or destruction of any of the improvements on the Premises by fire or other casualty,
Tenant shall give Landlord immediate notice thereof and shall, at Tenant's own expense and whether or not the insurance proceeds
are sufficient for the purpose, promptly commence and thereafter diligently pursue completion of the repair, restoration or rebuilding
of the same so that upon completion of such repairs, restoration or rebuilding, the value and rental value of the improvements
shall be substantially equal to the value and rental value thereof immediately prior to the occurrence of such fire or other
casualty. Tenant hereby expressly waives any statutory right to terminate this Lease in the event of damage or destruction of the
Premises or all or any portion of the buildings or improvements thereon.

 

16.2         Lease
Termination. Notwithstanding anything to the contrary contained herein, if the Premises should be rendered untenantable by
fire or other casualty during the last two (2) years of the Term to the extent of fifty percent (50%) or more of the replacement
cost of the Premises, Tenant shall have the option to terminate this Lease by notice to Landlord within sixty (60) days after the
occurrence of such damage or destruction. Upon termination, this Lease and the Term hereof shall cease and come to an end as of
the effective date of such notice (which shall be not less than thirty (30) nor more than ninety (90) days after the notice and
shall be specified in the notice). Any unearned rent or other charges shall be apportioned as of the effective date and Tenant
shall assign to Landlord all of its rights to the insurance proceeds arising out of damage or destruction to the improvements and
shall pay Landlord (when the information is ascertained) the difference between the value of the property damaged or destroyed,
prior to the damage or destruction, and the amount, if any, of the insurance proceeds.

 

SECTION 17 - EASEMENTS.

 

Landlord expressly
reserves all rights in and with respect to the use of the Premises as provided herein, including (without in any way limiting the
generality of the foregoing) the rights of Landlord to establish Common Areas and grant parking easements to others and to enter
upon the Premises and give easements to others for the purpose of installing, using, maintaining, renewing and replacing such overhead
or underground water, gas, sewer, and other pipe lines, and telephone, electric and power lines, cables and conduits as Landlord
may deem desirable in connection with the development or use of the other property in the Project or any other property in
the neighborhood thereof, whether owned by Landlord or not.

 

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SECTION 18 - INDEMNIFICATION.

 

18.1.        By
Tenant. Excepting any responsibility allocated to Landlord by reason of its negligence (excluding from this exception, however,
any responsibility allocated to Landlord by reason of its failure to enforce the terms of this Lease), Tenant shall indemnify,
defend and hold Landlord harmless for, from and against all liabilities, obligations, claims, suits, damages, penalties, causes
of action, costs and expenses (including without limitation, reasonable attorneys' fees and expenses) imposed upon or asserted
against Landlord by reason of the acts or omissions of Tenant, its agents, employees, contractors, suppliers, licensees, invitees
and guests and/or the occurrence of any of the following during the Term: (i) any use, nonuse or condition of the Premises or any
part thereof; (ii) any accident, injury to or death of persons (including workmen) or loss of or damage to property occurring on
or about the Premises or any part thereof; (iii) any failure on the part of Tenant to perform or comply with any of the provisions
of this Lease; (iv) performance of any labor or services or the furnishings of any materials or other property in respect of the
Premises or any part thereof (excluding any such matters performed or furnished by or at the request of Landlord and unrelated
to a default of Tenant under this Lease); or (v) any failure on the part of Tenant to clean up and/or dispose of any Hazardous
Materials, as described in Section 13.2 above, in accordance with the requirements of this Lease and applicable law. In the event
Landlord should be made a defendant in any action, suit or proceeding brought by reason of any such occurrence, Tenant shall, at
its own expense, resist and defend such action, suit or proceeding or cause the same to be resisted and defended by legal counsel
designated by Tenant but approved by Landlord. If any such action, suit or proceeding should result in a final judgment against
Landlord, Tenant shall promptly satisfy and discharge such judgment or shall cause such judgment to be promptly satisfied and discharged.
The obligations of Tenant under this Section 18 arising by reason of any such occurrence taking place while this Lease is in effect
shall survive the termination of this Lease.

 

18.2         By
Landlord. Landlord shall save, hold harmless and indemnify Tenant for, from and against all liabilities, obligations, claims,
suits, damages, penalties, causes of action, costs and expenses (including, without limitation, reasonable attorneys' fees and
expenses) imposed upon or asserted against Tenant by reason of the negligence of Landlord or its agents, contractors, servants
or employees.

 

18.3         Waiver
of Claims. Landlord and its agents, contractors, servants or employees and shall not be liable for, and Tenant hereby releases
all claims for, damage to persons and property sustained by Tenant or any person claiming through Tenant resulting from any theft,
fire, accident, occurrence or condition in, on or about the Premises or building of which they are a part, including, but not limited
to, such claims for damage resulting from (i) any defect in or failure of plumbing, heating or air-conditioning equipment, electric
wiring or installation thereof, water pipes, stairs, railings or walks; (ii) any equipment or appurtenances needing repair; (iii)
the bursting, leaking or running of any tank, wash stand, water closet, waste pipe, drain or any other pipe or tank in or about
the Premises; (iv) the backing up of any sewer pipe or down spout; (v) the escape of steam or hot water; (vi) water, snow or ice
being upon or coming through the roof or any other place upon or near the Premises or otherwise; (vii) the falling of any fixture,
plaster or stucco; and (viii) broken glass.

 

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SECTION 19 - ASSIGNMENT AND SUBLETTING.

 

19.1         Landlord
Consent. Tenant shall not transfer or assign this Lease or any interest in this Lease or sublet the Premises or any portion
thereof without first obtaining the written consent of Landlord, which consent may be given or withheld in Landlord's sole discretion;
and any attempted transfer, assignment or subletting, including any involuntary transfers or assignments by operation of law, without
such consent shall be void and confer no rights upon any third person, and at the option of Landlord, shall cause a termination
of this Lease, in which event such third person shall occupy the Premises as a tenant at sufferance. The acceptance of any rent
payments by Landlord from any such alleged assignee shall not constitute approval of the assignment or subletting of this Lease
by Landlord. No transfer, assignment or subletting shall relieve Tenant of its liability for the full performance of all of the
provisions, agreements, covenants and conditions of this Lease. A consent by Landlord to one transfer, assignment or subletting
shall not operate as a waiver of this Section as to any future transfer, assignment or subletting, and this Section 19 shall apply
to any transferee, assignee or subtenant.

 

19.2         In
Writing. Each transfer, assignment, and subletting to which there has been consent shall be by an instrument in writing in
form satisfactory to Landlord, and shall be executed by the transferor, assignor or sublessor; and the transferee, assignee, or
sublessee shall agree in writing for the benefit of Landlord to assume, to be bound by, and to perform the provisions, covenants
and conditions of this Lease to be done, kept and performed by Tenant. One executed copy of such written instrument shall be delivered
to Landlord. A consent to any transfer, assignment or subletting shall not constitute waiver or discharge of the provisions of
this paragraph with respect to a subsequent transfer, assignment or subletting. The acceptance of rent from any other person shall
not be deemed to be a waiver of any of the provisions of this Lease or a consent to the transfer, assignment or subletting of the
Premises.

 

19.3         Transfer
Limitation. If Tenant (including any entity later becoming Tenant) is a corporation, unincorporated association, limited liability
company or a partnership, the transfer (other than pursuant to the laws of devise and descent upon the death of a shareholder,
partner or owner), assignment or hypothecation of any stock or interest in such corporation, association, company or partnership
in the aggregate in excess of twenty percent (20%) from the time such entity becomes a Tenant hereunder, shall be deemed an assignment
within the meaning and provisions of this Section 19. The foregoing sentence shall not apply to a corporation of which the capital
stock is publicly traded on a recognized national stock exchange.

 

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19.4         Deleted.

 

SECTION 20 - SUBJECT TO MASTER LEASE.

 

Tenant acknowledges
that this Lease is subordinate to a Master Lease of the Project among CANYON PORTAL PROPERTIES, L.L.C. and ATHERTON VENTURES, L.L.C.
as Landlord and CANYON PORTAL II, L.L.C. , an Arizona limited liability company as Tenant. A Memorandum of Lease is recorded in
Coconino County as Instrument No. 98-21399 on July 2, 1998. An Amendment to Memorandum of Lease is recorded in Coconino County
as Instrument No. 3288292 on October 14, 2004.

 

SECTION 21 - DEFAULTS BY TENANT.

 

21.1        Event
of Default. Each of the following occurrences shall be an Event of Default hereunder:

 

A.           If
Tenant fails to pay any Rent, Additional Charges or any sum due hereunder promptly when due and such failure continues for three
(3) days after the date such payment was due.

 

B.           If
Tenant defaults or breaches any of the other (non-monetary) covenants, agreements, conditions or undertakings herein to be kept,
observed and performed by Tenant and such default continues for ten (10) days after notice thereof in writing to Tenant.

 

C.           TENANT
ACKNOWLEDGES THAT ANY VIOLATION OF ANY OF THE PRESCRIBED CONDUCT AS SET FORTH IN PARAGRAPH 8.3 IS A MATERIAL BREACH OF THIS LEASE.
IF IN ANY TWELVE (12) MONTH PERIOD THERE ARE MORE THAN TWO (2) NOTICES OF VIOLATION OF PARAGRAPH 8.3 SENT BY LANDLORD TO TENANT,
THEN LANDLORD SHALL HAVE THE RIGHT TO TERMINATE THIS LEASE WITHOUT NOTICE.

 

TENANT'S INITIALS:               

 

D.           If
Tenant files any petition under any chapter or section of the Federal Bankruptcy Code or any similar law, state or federal, whether
now or hereafter existing, or shall file an answer admitting insolvency or inability to pay its debts.

 

E.           If
Tenant fails to obtain a stay of any involuntary proceedings under any chapter or section of the Federal Bankruptcy Code within
sixty (60) days after the institution thereof.

 

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F.           If
a trustee or receiver is appointed for Tenant or for a major portion of its property or for any portion of the Premises and such
appointment is not vacated and dismissed within sixty (60) days thereafter and in any event prior to any action adverse to the
interest of Tenant or Landlord having been taken by such trustee or receiver.

 

G.           If
any court takes jurisdiction of a major portion of the property of Tenant or any part of the Premises in any involuntary proceeding
for dissolution, liquidation or winding up of Tenant and such jurisdiction is not relinquished or vacated within sixty (60) days.

 

H.           If
Tenant makes an assignment for the benefit of its creditors.

 

I.           If
Tenant fails to occupy and operate the business in the Premises for three (3) consecutive days (except as otherwise allowed under
Section 8.4).

 

21.2        Re-Enter
of Premises. Upon the occurrence of any such Event(s) of Default and at any time thereafter, Landlord shall have the right,
at its election, to reenter the Premises, or any part thereof, either with or without process of law, and to expel, remove and
evict Tenant and all persons occupying or upon the same under Tenant, using such force as may be lawful and necessary in so doing,
and to possess the Premises and enjoy the same as in their former estate and to take full possession of and control over the Premises
and the buildings and improvements thereon and to have, hold and enjoy the same and to receive all rental income of and from the
same. No reentry by Landlord shall be deemed an acceptance of a surrender of this Lease, nor shall it absolve or discharge Tenant
from any liability under this Lease. Upon such reentry, all rights of Tenant to occupy or possess the Premises shall cease and
terminate.

 

21.3        Lease
Termination. Upon the occurrence of any such Event(s) of Default and at any time thereafter, Landlord shall have the right,
at its election, with or without reentry as provided in Section 21.2, to give written notice to Tenant stating that this
Lease shall terminate on the date specified by such notice, and upon the date specified in such notice this Lease and the Term
hereby demised and all rights of Tenant hereunder shall terminate. Upon such termination, Tenant shall quit and peacefully surrender
to Landlord the Premises and the buildings and improvements then situated thereon.

 

21.4       Reletting.
At any time and from time to time after such reentry, Landlord may relet the Premises and the buildings and improvements thereon,
or any part thereof, in the name of Landlord or otherwise, for such term or terms (which may be greater or less than the period
which would otherwise have constituted the balance of the Term of this Lease), and on such conditions (which may include concessions
or free rental) as Landlord, in its reasonable discretion, may determine and may collect and receive the rental therefore. However,
in no event shall Landlord be under any obligation to relet the Premises and the buildings and improvements thereon, or any part
thereof, and Landlord shall in no way be responsible or liable for any failure to relet or for any failure to collect any rental
due upon any such reletting. Even though it may relet the Premises, Landlord shall have the right thereafter to terminate this
Lease and all of the rights of Tenant in or to the Premises. Nothing contained in the foregoing shall be deemed a waiver or relinquishment
by Tenant of any duty imposed by law on Landlord to mitigate its damages.

 

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21.5        Survival
of Liability. Unless Landlord shall have notified Tenant in writing that it has elected to terminate this Lease, no such reentry
or action in lawful detainer or otherwise to obtain possession of the Premises shall relieve Tenant of its liability and obligations
under this Lease; and all such liability and obligations shall survive any such reentry. In the event of any such reentry, whether
or not the Premises and the buildings and improvements thereon, or any part thereof, shall have been relet, Tenant shall pay to
Landlord the entire rental and all other charges required to be paid by Tenant up to the time of such reentry of this Lease, and
thereafter Tenant, until the end of what would have been the Term of this Lease in the absence of such reentry, shall be liable
to Landlord, and shall pay to Landlord, as damages for Tenant's default:

 

A.           The
amount of Minimum Annual Base Rental and additional charges which would be payable under this Lease by Tenant if this Lease were
still in effect, less

 

B.           The
net proceeds of any reletting, after deducting all of Landlord's expenses in connection with such reletting, including without
limitation all repossession costs, brokerage commissions, legal expenses, attorneys' fees, alteration costs and expenses of preparation
for such reletting.

 

Tenant shall be liable
for and pay such damages to Landlord on a monthly basis on the first day of each month and Landlord shall be entitled to recover
from Tenant monthly as the same shall arise. The excess, if any, in any month or months, of the net proceeds described in
subparagraph (B) above actually received by Landlord over the Minimum Annual Base Rental and Additional Charges described in subparagraph
(A) above shall belong to Landlord, provided that such excess shall be credited and applied against Tenant's future obligations
arising under this Section 21.5 as the same become due and payable by Tenant hereunder, and that Tenant shall remain liable for
future deficiencies, as applicable. Notwithstanding any such reentry without termination, Landlord may at any time thereafter,
by written notice to Tenant, elect to terminate this Lease for Tenant's previous breach.

 

21.6      
Cumulative Remedies. Each right and remedy of Landlord provided for in this Lease shall be cumulative and in addition to
every other right or remedy provided for in this Lease or now or hereafter existing at law or in equity or by statute or otherwise;
and the exercise or beginning of the exercise by Landlord of any one or more of such rights or remedies shall not preclude the
simultaneous or later exercise by Landlord of any or all other rights or remedies provided for in this Lease now or hereafter existing
at law or in equity or by statute or otherwise.

 

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21.7         Sublessee
Defaults. Any violation of any covenant or provision of this Lease, whether by act or omission, by any sublessee or any other
persons occupying any portion of the Premises under the rights of Tenant shall be deemed a violation of such provision by Tenant
and a default under this Lease. Any such violation shall not be deemed to be a default hereunder if and so long as Tenant in good
faith and at its own expense takes and diligently pursues any and all steps it is entitled to take and which steps if completed
will cure said default.

 

21.8        Repetitive
Rent Payment Defaults. NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH 21.1 HEREOF TO THE CONTRARY, IF IN ANY ONE (1) PERIOD OF
TWELVE (12) CONSECUTIVE MONTHS, TENANT SHALL HAVE BEEN IN DEFAULT IN THE PAYMENT OF RENT HEREIN AT LEAST THREE (3) TIMES AND LANDLORD,
BECAUSE OF SUCH DEFAULTS, SHALL HAVE SERVED UPON TENANT WITHIN SUCH TWELVE (12) MONTH PERIOD THREE (3) OR MORE NOTICES OF LATE
PAYMENT, THEN THE FOURTH DEFAULT SHALL BE DEEMED TO BE A NONCURABLE DEFAULT AND LANDLORD SHALL BE ENTITLED TO IMMEDIATE POSSESSION
OF THE PREMISES.

 

21.9        Cure
Period. Notwithstanding any other provision of this Section, Landlord agrees that if the default complained of, other than
for the payment of monies, is of such a nature that the same cannot be cured within the twenty (20) day period for curing as specified
in the written notice relating thereto, then such default shall be deemed to be cured if Tenant within such period of twenty (20)
days shall have commenced thereof and shall continue thereafter with all due diligence to effect such cure and does so complete
the same with the use of such diligence as aforesaid.

 

21.10      Late
Charges. A late charge in the amount of ten percent (10%) of the delinquent payment shall be assessed to any payment required
to be made by Tenant to Landlord under the terms of this Lease not received by Landlord within three (3) days after its due date
(regardless of whether Tenant has been given notice of such failure of payment). If Tenant tenders to Landlord a check that is
returned marked "NSF" or its equivalent, Tenant shall pay Landlord a payment in the amount of twenty percent (20%) of
the amount of such non-negotiable check. Tenant's failure to pay any such late charge within three (3) days after Landlord's written
demand therefor shall constitute an Event of Default hereunder. In addition to the payments set forth in the preceding two sentences,
Tenant shall pay Landlord interest at the rate of eighteen percent (18%) per annum from the date any payment is due until the date
such payment is actually received by Landlord.

 

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SECTION 22 - CONDEMNATION.

 

If title to all or
any portion of the Premises is taken by a public or quasi-public authority under any statute or by right of eminent domain of any
governmental body, whether such loss or damage results from condemnation of part or all of the Premises, Tenant shall not be entitled
to participate or receive any part of the damages or award except where the same shall provide for Tenant's moving or other reimbursable
expenses, the portion thereof allocated to the taking of Tenant's trade fixtures, equipment and personal property or to a loss
of business by Tenant. Should any power of eminent domain be exercised after Tenant is in possession, such exercise shall not void
or impair this Lease unless the amount of the Premises so taken substantially and materially impairs the usefulness of the Premises
for the purposes for which they are leased in which case, either party may cancel this Lease by notice to the other within sixty
(60) days after such possession. Should only a portion of the Premises be taken and the Premises continue to be reasonably suitable
for Tenant's use, the rent shall be reduced from the date of such possession in direct proportion to the reduction in the square
footage of the Premises.

 

SECTION 23 - TENANT'S WAIVER OF STATUTORY
RIGHTS.

 

In the event of any
termination of the Term (or any repossession of the Premises), Tenant so far as permitted by law, waives (i) any notice of reentry
or of the institution of legal proceedings to that end; and (ii) the benefits of any laws now or hereafter in force exempting property
from liability for rent or for debt.

 

SECTION 24 - WAIVER OF PERFORMANCE.

 

No failure by Landlord
or Tenant to insist upon the strict performance of any term or condition hereof or to exercise any right, power or remedy consequent
upon a breach thereof and no submission by Tenant or acceptance by Landlord of full or partial rent during the continuance of any
such breach shall constitute a waiver of any such breach or of any such term. No waiver of any breach shall affect or alter this
Lease (which shall continue in full force and effect), or the respective rights of Landlord or Tenant with respect to any other
then-existing or subsequent breach.

 

SECTION 25 - REMEDIES CUMULATIVE.

 

Each right, power and
remedy provided for in this Lease now or hereafter existing at law, in equity or otherwise shall be cumulative and concurrent and
shall be in addition to every other right, power or remedy provided for in this Lease now or hereafter existing at law, in equity
or otherwise; and the exercise or beginning of the exercise of any one or more of the rights, powers or remedies provided for in
this Lease shall not preclude the simultaneous or later exercise of any or all such other rights, powers or remedies.

 

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SECTION 26 - CONVEYANCE BY LANDLORD.

 

In the event Landlord
or any successor Landlord shall convey or otherwise dispose of the Premises, it shall thereupon be released from all liabilities
and obligations imposed upon Landlord under this Lease (except those accruing prior to such conveyance or other disposition) and
such liabilities and obligations shall be binding solely on the then owner of the Premises.

 

SECTION 27 - NO PERSONAL LIABILITY TO
LANDLORD.

 

Tenant shall look solely
to Landlord's interest in the Premises for the satisfaction of any judgment or decree requiring the payment of money by Landlord
based upon any default under this Lease, and no other property or assets of Landlord, or any partner or member of, or shareholder
in, Landlord, shall be subject to levy, execution or other enforcement procedures for satisfaction of any such judgment or decree.

 

SECTION 28 - ATTORNEYS' FEES.

 

In the event Landlord
retains an attorney to enforce its rights under this Lease or to bring suit for possession of the Premises, for the recovery of
any sum due hereunder, or for any other relief against Tenant, declaratory or otherwise, arising out of a breach of any term of
this Lease, or in the event Tenant should bring any action for any relief against Landlord, declaratory or otherwise, arising out
of this Lease, the prevailing party shall be entitled to receive from the other party reasonable attorneys' fees and reasonable
costs and expenses, which shall be deemed to have accrued due to the commencement of such action and shall be enforceable whether
or not such action is prosecuted to judgment.

 

SECTION 29 - PROVISIONS SUBJECT TO APPLICABLE
LAW.

 

All rights, powers
and remedies provided herein shall be exercised only to the extent that the exercise thereof shall not violate any applicable law
and are intended to be limited to the extent necessary so that they shall not render this Lease invalid or unenforceable under
any applicable law. If any term of this Lease shall be held to be invalid, illegal or unenforceable, the validity of the other
terms of this Lease shall in no way be affected thereby.

 

SECTION 30 - RIGHT TO CURE TENANT'S
DEFAULTS.

 

In the event Tenant
shall breach any term, covenant or provision of this Lease, Landlord may at any time, without notice, cure such breach for
the account and at the expense of Tenant. If Landlord at any time, by reason of such breach, is compelled to pay or elects to pay
any sum of money or to do any act that will require the payment of any sum of money, or is compelled to incur any expense, including
reasonable attorneys' fees, incurred in instituting, prosecuting or defending any actions or proceedings to enforce Landlord's
rights under this Lease or otherwise, the sum or sums so paid by Landlord, with all interest, costs and damages, shall be deemed
to be Additional Charges and shall be paid by Tenant to Landlord on the first day of the month following the incurring of such
expenses of the payment of such sums and shall include interest at the rate of eighteen percent (18%) per annum from the date Landlord
makes a payment until Tenant pays such Additional Charges in full.

 

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SECTION 31 - NOTICES.

 

Any notice to be given
by Landlord or Tenant shall be given in writing and delivered in person or by overnight mail service to Landlord or Tenant, forwarded
by certified or registered mail, postage prepaid, or sent via facsimile transmission, to the address indicated in the Fundamental
Lease Provisions, unless the party giving any such notice has been notified, in writing, of a change of address. Any such notice
shall be deemed effective (a) upon receipt or refusal to accept delivery, if personally delivered; (b) on the next business day
following delivery to the overnight courier; (c) in the case of certified mailing, on the date of actual delivery as shown by the
addressee's receipt or upon the expiration of three (3) business days following the date of mailing, whichever occurs first; or
(d) in the case of facsimile transmission, upon receipt (a written confirmation of successful transmission from the transmitting
facsimile machine being prima fade evidence of such receipt).

 

SECTION 32 - SIGNS.

 

Tenant shall not place,
alter, exhibit, inscribe, paint or affix any sign, awning, canopy, advertisement, notice or other lettering on any part of the
outside of the Premises, or of the building of which the Premises is a part, or inside the Premises if visible from the outside,
without first obtaining Landlord's written approval thereof, which shall not be unreasonably withheld, and if so approved, Tenant
shall maintain the same in good condition and repair. All signs shall comply with applicable ordinances or other governmental restrictions
and with all applicable rules and regulations then in force or as may be put in force and effect from time to time by any governmental
authority or by Landlord.

 

SECTION 33 - LANDLORD'S INSPECTIONS.

 

33.1         Inspection.
Landlord reserves the right to, at all reasonable times, by itself or by its duly authorized agents, employees and contractors,
and without notice to go upon and inspect the Premises and every part thereof, to enforce or carry out the provisions of this Lease,
to make, at its option, repairs, installations, alterations, improvements and additions to the Premises or the building of which
the Premises are a part, to perform any defaulted obligation of Tenant or for any other proper purposes. Landlord also reserves
the right to install or place upon or affix to the roof and exterior walls of the Premises: equipment, signs, displays, antennae
and any other object or structure of any kind, provided the same shall not interfere with Tenant's occupancy or materially impair
the structural integrity of the building of which the Premises are a part.

 

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33.2         Presenting
for Sale or Lease. Landlord hereby reserves the right during usual business hours to enter the Premises and to show the same
for purposes of sale, lease or mortgage, and during the last six (6) months of the term of this Lease, or the extension thereof,
to exhibit the same to any prospective tenant, and to display appropriate signage for such sale or lease. Prospective purchasers
or tenants authorized by Landlord may inspect the Premises during reasonable hours at any time.

 

SECTION 34 - ESTOPPEL CERTIFICATE.

 

Tenant will execute,
acknowledge and deliver to Landlord, within three (3) days following request therefor, a certificate certifying (a) that this Lease
is unmodified and in full force (or, if there have been modifications, that the Lease is in full force and effect, as modified,
and stating the modifications); (b) the dates, if any, to which rent, Additional Charges and other sums payable hereunder have
been paid; (c) that no notice has been received by Tenant of any default which has not been cured, except as to defaults specified
in such certificate; and (d) this Lease is and shall be subordinate to any existing or future deed of trust, mortgage or security
agreement placed upon the Premises or the Project by the Landlord or owner of the Property. Any claim of Tenant in contradiction
of any of the foregoing matters must be set forth with specificity in the certificate. Any such certificate may be relied upon
by any prospective purchaser or encumbrancer of the Premises or any part thereof. Tenant's failure to deliver such certificate
within the time permitted hereby shall be conclusive upon Tenant that this Lease is in full force and effect, except to the extent
any modification has been represented by Landlord, and there are no uncured defaults in Landlord's performance, and that not more
than one month's rent has been paid in advance. In addition, at Landlord's option, after notice to Tenant and expiration of applicable
grace period under this Lease, such failure of Tenant to deliver such certificate shall constitute an Event of Default. Tenant
acknowledges and agrees that the promise to issue such statements pursuant hereto are a material consideration inducing Landlord
to enter into this Lease and that the breach of such promise shall be deemed a material breach of this Lease.

 

SECTION 35 - WAIVER OF TRIAL BY JURY.

 

TENANT HEREBY WAIVES
ALL RIGHTS TO TRIAL BY JURY IN ANY CLAIM, ACTION, PROCEEDING OR COUNTERCLAIM BY EITHER LANDLORD OR TENANT AGAINST EACH OTHER ON
ANY MATTERS ARISING OUT OF OR IN ANY WAY CONNECTED WITH THIS LEASE, THE RELATIONSHIP OF LANDLORD AND TENANT, AND/OR TENANT'S USE
OR OCCUPANCY OF THE LEASED PREMISES. TENANT AGREES THAT EXCLUSIVE JURISDICTION FOR ALL LEGAL ACTIONS SHALL BE COCONINO COUNTY SUPERIOR
COURT.

 

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SECTION 36 - RECORDING.

 

Neither this Lease
nor a memorandum thereof, may be recorded, or otherwise made public, by any means, without the express written consent of Landlord.
Any such recording or publication without such consent, shall, at Landlord's option, cause this Lease and all rights of Tenant
hereunder, to be immediately forfeited and of no further force and effect, provided, however, that Landlord shall have the right
to such action against Tenant, for damages resulting from such recording, as Landlord shall be entitled to by law.

 

SECTION 37 - SUBORDINATION.

 

This Lease is hereby
declared to be subject and subordinate to the lien of any present or future encumbrance or encumbrances upon the Premises or the
Project, irrespective of the time of execution or the time of recording of any such encumbrance or encumbrances. Landlord
shall use its good faith efforts to obtain for Tenant an attornment and non-disturbance agreement from any lender which has a lien
on the Premises. This subordination is subject to the right of Tenant upon a foreclosure or other action taken under any mortgage
by the holders thereof to have this Lease and the rights of Tenant hereunder not be disturbed but to continue in full force and
effect so long as Tenant shall not be in default hereunder. The word "encumbrance" as used herein includes mortgages,
deeds of trust or other similar instruments, and modifications, extensions, renewals and replacements thereof, and any and all
advances thereunder.

 

SECTION 38 - MISCELLANEOUS.

 

38.1         Definition
of Tenant.   The Term "Tenant" shall include legal representatives, successors and permitted assigns.
All covenants herein shall be made binding upon Tenant and construed to be equally applicable to and binding upon its agents, employees
and others claiming the right to be in the Premises or in the building or in the building through, under or above Tenant.

 

38.2        Tenant.
If more than one individual, firm, or corporation shall join as Tenant, singular context shall be construed to be plural wherever
necessary and the covenants of Tenant shall be the joint and several obligations of each party signing as Tenant and when the parties
signing as Tenant are partners, it shall be the obligation of the firm and of the individual members thereof.

 

38.3        Gender
and Number. Whenever from the context it appears appropriate, each item stated in the singular shall include the plural and
vice versa and the masculine, feminine, or neuter form shall included the masculine, feminine and neuter forms.

 

 

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38.4         Modifications
and Waivers. No change, modification, or waiver of any provision of this Lease shall be valid or binding unless it is in writing
dated after the date hereof and signed by the parties intended to be bound. No waiver of any breach, term, or condition of this
Lease by either party shall constitute a subsequent waiver of the same or any other breach, term, or condition.

 

38.5        Implied
Warranties. OTHER THAN AS SET FORTH IN THIS LEASE, TENANT AND LANDLORD EXPRESSLY AGREE THAT THERE ARE AND SHALL BE NO IMPLIED
WARRANTIES OF MERCHANTABILITY, HABITABILITY, FITNESS FOR A PARTICULAR PURPOSE OR ANY OTHER KIND ARISING OUT OF THIS LEASE, AND
THERE ARE NO WARRANTIES WHICH EXTEND BEYOND THOSE EXPRESSLY SET FORTH IN THIS LEASE.

 

38.6        Binding
Effect. This Lease shall be binding upon and shall inure to the benefit of the parties and their respective heirs, personal
representatives, successors and assigns. This provision shall not be deemed to grant Tenant any right to assign this Lease or sublet
the Premises or any part thereof other than as provided in this Lease.

 

38.7        Severability.
To the fullest extent possible each provision of this agreement shall be interpreted in such fashion as to be effective and valid
under applicable law. If any provision of this Lease is declared void or unenforceable with respect to particular circumstances,
such provision shall remain in full force and effect in all other circumstances. If any provision of this Lease is declared void
or unenforceable, such provision shall be deemed severed from this Lease, which shall otherwise remain in full force and effect.

 

38.8        Governing
Law and Jurisdiction. Except where preempted by the laws of the United States or the rules or regulations of any agency or
instrumentality thereof, this Lease is to be interpreted, construed and governed by the laws of the State of Arizona. The parties
irrevocably and unconditionally submit to the exclusive jurisdiction of the Superior Court of the State of Arizona for the County
of Coconino in connection with any legal action or proceeding arising out of or relating to this Lease and the parties waive any
objection relating to the basis for personal or in rem jurisdiction or to venue which it may now or hereafter have in any such
suit, action or proceeding.

 

38.9        Entire
Agreement. This instrument constitutes the sole and only agreement between Landlord and Tenant respecting the Premises, the
leasing of the Premises to the Tenant, or the Lease term herein specified, and correctly sets forth the obligations of the Landlord
and Tenant to each other as of its date. Any agreements or representations by the Landlord to the Tenant not expressly set forth
in this instrument are void and unenforceable. All prior agreements and understanding of the parties with respect to such subject
matter are hereby superseded. No representations, promises, agreements, or understandings contained in this Lease regarding the
subject matter hereof shall be of any force or effect unless in writing, executed by the party to be bound, and dated on or subsequent
to the date hereof. Captions and headings are for convenience only and shall not alter any provision or be used in the interpretation
of this Lease.

 

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38.10       Time
is of the Essence. Time is of the essence of this Lease and each and every provision hereof. Any extension of time granted
for the performance of any duty under this Lease shall not be considered an extension of time for the performance of any other
duty under this Lease.

 

38.11       Brokers.
Tenant represents and warrants that it has not entered into any agreement with, nor otherwise had any dealings with, any broker
or agent in connection or execution of this Lease which could form the basis of any claim by any such broker or agent for a brokerage
fee or commission, finder's fee, or any other compensation of any kind or nature in connection with this Leasehold.

 

	LANDLORD: 	 	TENANT:
	 	 	 
	CANYON PORTAL II, L.L.C.,	 	L’AUBERGE ORCHARDS, LLC, 
	an Arizona limited liability company	 	an Arizona corporation
	 	 	 
	By:	/s/ Al Spector	 	By:	/s/ Al Spector
	 	Al Spector	 	 	Al Spector
	Its:	Manager	 	Its:	Manager

 

 

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List of Exhibits

 

A.           Project
Site Plan

 

    	 

    	 

     

 

    	 

    	 

     

 

Exhibit Gii

 

 

AMENDMENT TO LEASE

 

(Temporary Housing Units)

 

THIS AMENDMENT TO LEASE (“Amendment”)
executed and effective as of May 14, 2013 by and between Canyon Portal II, L.L.C., an Arizona limited liability company (“Landlord”)
and L’Auberge Orchards LLC, an Arizona limited liability company (“Tenant”).

 

WHEREAS, Landlord and Tenant entered into
that certain Lease dated April 1, 2012 (“Original Lease”), whereby Landlord leased to Tenant and Tenant leased from
Landlord Units 418, 419, 436, 437 and 438 in that certain 40 unit hotel property located in Sedona, Arizona described in the Original
Lease;

 

WHEREAS, Landlord and Tenant desire to further
amend the terms of the Lease pursuant to the provisions of this Amendment.

 

NOW, THEREFORE, in consideration of the
above recitals, the mutual promises contained herein, and other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, Landlord and Tenant agree as follows:

 

1. Permitted Use. The Permitted Use set forth in Section
1 of the Original Lease is hereby deleted in its entirety and replaced with the following:

 

“Housing Units for employees or overnight lodging units.”

 

2. Rent. The total gross monthly rent (inclusive of minimum
base rent, common area charges and all other additional rent) payable in accordance with the Lease shall be $3,100 for the period
commencing on the date hereof through the fifth (5th) anniversary of the date hereof. Thereafter, the total gross monthly
rent payable under this Lease shall be adjusted in accordance with that portion of Section 5.1.B. of the Original Lease beginning
with the second sentence of such Section 5.1.B.

 

3. Lease Term.

 

(a) The Lease Term is hereby extended to
December 31, 2040.

 

(b) Landlord grants to Tenant the right
to extend the Lease Term for three (3) additional periods of ten (10) years each. Each extension shall be upon the same terms and
conditions as the Original Lease, as modified by this Amendment.

 

(c) Notwithstanding anything herein or in
the Original Lease to the contrary, Tenant shall have the right to terminate this Lease at any time upon thirty (30) days prior
written notice to Landlord.

 

4. Approval of Financial Statement. Section 3.2 of the
Original Lease is hereby deleted in its entirety.

 

5. Name Change. Notwithstanding the provisions Section
3.4 of the Original Lease to the contrary, Landlord shall not have the right to change the name of the Premises.

 

    	1

    	 

     

6. Parking Policy. The two (2) parking spaces for Tenant’s
exclusive use provided in Section 7.2 of the Original Lease are identified on Exhibit A attached hereto and Landlord shall,
at Landlord’s expense, install signage in front of such exclusive parking spaces designating them for the exclusive use of
the Premises.

 

7. Parking Charges. Section 7.3 of the Original Lease
is hereby deleted in its entirety.

 

8. Prohibited Conduct. Section 8.2(A) of the Original
Lease is hereby deleted in its entirety and replaced with the following:

 

“Use or operate any machinery that,
in Landlord’s opinion, is harmful to the Premises or the Project or disturbing to other tenants in the building of which
the Premises is a part; use any loud speakers, televisions, stereos, radios or other devices in a manner so as to be heard from
outside the Premises.”

 

9. Prescribed Conduct.

 

(a)          Section
8.3(B) of the Original Lease is hereby deleted in its entirety and replaced with the following:

 

“Upon Tenant becoming aware of any
accident, fire, pest infestation, or damage occurring on or to the Premises, Tenant shall give Landlord prompt written notice of
any such accident, fire, pest infestation, or damage.”

 

(b)          Landlord’s
exercise of discretion pursuant to Section 8.3(C) of the Original Lease shall be made in a commercially reasonable manner.

 

(c)          Section
8.3(D) of the Original Lease is hereby deleted in its entirety.

 

10. Written Approval of Tenant Alterations. Section 9.3
of the Original Lease is hereby amended to including the following: “Notwithstanding the foregoing to the contrary, Landlord’s
approval of any request by Tenant to make any alterations, additions or improvements to the Premises shall not be unreasonably
withheld, conditioned or delayed and Landlord shall not have the right to require Tenant, or its contractor, to secure a labor
and materials payment bond for any alterations, additions or improvements to the Premises the value of which is Two Hundred Fifty
Thousand Dollars ($250,000) or less in any single instance. Tenant agrees to not make any payment for such alterations, additions
or improvements without obtaining lien waivers for labor or materials .”

 

11. Premises Utilities. Notwithstanding anything provided
in Section 10.5 of the Original Lease to the contrary, Landlord shall, at Landlord’s expense, cause to be provided to the
Premises all water (hot and cold), gas, sewer, and electricity service necessary for the operation of the Premises for the Permitted
Use.

 

12. Tenant’s Maintenance Obligation. The terms
“store front” and “plate glass” are hereby deleted from section 12.1 of the Original Lease.

 

    	2

    	 

     

13. Insurance.

 

(a)          Notwithstanding
Section 15.1 of the Original Lease to the contrary, Landlord shall maintain the insurance coverages provided in Section 15.1 and
such coverages for general liability, bodily injury and property damage shall be in an amount of not less than $3,000,000 and fire
and extended coverage in an amount not less than the full replacement cost of the Premises.

 

(b)          Section
15.3(B) of the Original Lease is hereby deleted in its entirety.

 

14. Repair. Section 15.7 of the Lease is hereby deleted
in its entirety.

 

15. Damage or Destruction. Article 16 of the Original
Lease is hereby deleted in its entirety and replaced with the following:

 

“If all or any portion of the Premises or the Project
is damaged by fire or other casualty insurable under a standard fire insurance policy with a standard extended coverage endorsement,
Minimum Monthly Rental and Additional Rent shall abate and Landlord shall promptly repair as is necessary to replace the Premises
and when placed in such condition the Premises shall be deemed restored and rendered tenantable, such repair or rebuilding to be
commenced within a reasonable time after the occurrence. If such damage occurs in the last two years of the Lease Term or during
any Option Term, Tenant or Landlord shall have the option of terminating the Lease upon written notice to the other party. If Landlord’s
Lender requires that the insurance proceeds be used to retire the debt, Landlord shall have no obligation to rebuild, and this
Lease shall terminate upon notice to Tenant. Promptly following Landlord’s repair or rebuilding, Tenant, at Tenant’s
sole expense, shall repair or replace its stock in trade, fixtures, furniture, furnishings, floor coverings and equipment, and
if Tenant has closed, Tenant shall promptly reopen for business.”

 

16. Indemnification.

 

a. Section 18.1 of the Original Lease is
hereby deleted in its entirety and replaced with the following:

 

“By Tenant.Excepting any responsibility
allocated to Landlord by reason of its gross negligence (excluding from this exception, however, any responsibility allocated to
Landlord by reason of its failure to enforce the terms of this Lease), Tenant shall indemnify, defend and hold Landlord harmless
for, from and against all liabilities, obligations, claims, suits, damages, penalties, causes of action, costs and expenses (including
without limitation, reasonable attorneys’ fees and expenses) imposed upon or asserted against Landlord by reason of the gross
negligence or willful misconduct of Tenant, its agents, employees, contractors, suppliers, licensees, invitees and guests and/or
the occurrence of any of thefollowing during the Term: (i) any use, non-use or condition of the Premises or any part thereof; (ii)
any accident, injury to or death of persons (including workmen) or loss of or damage to property occurring on or about the Premises
or any part thereof; (iii) any failure on the part of Tenant to perform or comply with any of the provisions of this Lease; (iv)
performance of any labor or services or the furnishings of any materials or other property in respect of the Premises or any part
thereof (excluding any such matters performed or furnished by or at the request of Landlord and unrelated to a default of Tenant
under this Lease); or (v) any failure on the part of Tenant to clean up and/or dispose of any Hazardous Materials, as described
in Section 13.2 above, in accordance with the requirements of this Lease and applicable law. In the event Landlord should be made
a defendant in any action, suit or proceeding brought by reason of any such occurrence, Tenant shall, at its own expense, resist
and defend such action, suit or proceeding or cause the same to be resisted and defended by legal counsel designated by Tenant
but approved by Landlord. If any such action, suit or proceeding should result in a final judgment against Landlord, Tenant shall
promptly satisfy and discharge such judgment or shall cause such judgment to be promptly satisfied and discharged. The obligations
of Tenant under this Section 18 arising by reason of any such occurrence taking place while this Lease is in effect shall survive
the termination of this Lease.”

 

    	3

    	 

     

b. Section 18.2 of the Original Lease is
hereby deleted in its entirety and replaced with the following:

 

“By Landlord.Landlord shall
save, hold harmless and indemnify Tenant for, from and against all liabilities, obligations, claims, suits, damages, penalties,
causes of action, costs and expenses (including, without limitation, reasonable attorneys’ fees and expenses) imposed upon
or asserted against Tenant by reason of the gross negligence or willful misconduct of Landlord or its agents, contractors, servants
or employees and/or the occurrence of any of the following during the Term: (i) any use or condition of the Premises or any part
thereof (which Landlord is required to maintain); (ii) any accident, injury to or death of persons (including workmen) or loss
of or damage to property occurring on or about the Common Areas; (iii) any failure on the part of Landlord to perform or comply
with any of the provisions of this Lease; and (iv) performance of any labor or services or the furnishings of any materials or
other property in respect of the Premises or any part thereof (excluding any such matters performed or furnished by or at the request
of Tenant). In the event Tenant should be made a defendant in any action, suit or proceeding brought by reason of any such occurrence,
Landlord shall, at its own expense, resist and defend such action, suit or proceeding or cause the same to be resisted and defended
by legal counsel designated by Landlord but approved by Tenant. If any such action, suit or proceeding should result in a final
judgment against Tenant, Landlord shall promptly satisfy and discharge such judgment or shall cause such judgment to be promptly
satisfied and discharged. The obligations of Landlord under this Section 18 arising by reason of any such occurrence taking place
while this Lease is in effect shall survive the termination of this Lease.”

 

17. Waiver of Subrogation. Except with respect to Worker’s
Compensation, to which no waiver of subrogation will apply, each party hereby waives any and every right or cause of action for
the events which occur or accrue during the Lease Term for any and all loss of, or damage to, any of its property (whether or not
such loss or damage is caused by the fault or negligence of the other party or anyone for whom said other party may be responsible),
which loss or damage is covered by valid and collectible fire, extended coverage, “All Risk” or similar policies covering
real property, personal property or business interruption insurance policies, to the extent that such loss or damage is recovered
under said insurance policies. Said waivers shall be in addition to, and not in limitation or derogation of, any other waiver or
release contained in this Lease with respect to any loss or damage to property of the parties hereto. Written notice of the terms
of such mutual waivers shall be given to each insurance carrier and the insurance policies shall be properly endorsed, if necessary,
to prevent the invalidation of coverage by reason of said waivers.

 

    	4

    	 

     

18. Assignment and Subletting. Article 19 of the Original
Lease is hereby deleted in its entirety and replaced with the following:

 

“Tenant shall have the right to transfer or assign this
Lease or sublet all or any portion of the Premises without Landlord’s consent, but with prior written notice to Landlord;
provided, the assignee or subtenant expressly assumes all obligations of Tenant under the Lease. Notwithstanding the foregoing,
Landlord shall not have the right to consent to any assignment or subletting of this Lease or any portion of the Premises to an
entity which controls, is controlled by or is under common control with Tenant, and Landlord shall not withhold its consent to
any proposed assignee or subtenant with financial wherewithal equal to or superior to that of Tenant and who is actively engaged
in the hospitality industry.”

 

19. Event of Default. Section 21.1(I)
of the Original Lease is hereby deleted in it entirety.

 

20. Estoppels. The period in which Tenant must respond
to a request for an estoppel pursuant to Section 34 of the Lease is hereby modified from three (3) days to ten (10) business days.
In the event Tenant fails to respond within such ten (10) business day period, Tenant shall be deemed in default under Section
21.1 of the Lease, but in no event will Tenant’s failure to respond be deemed an acknowledgement of any proported facts contained
in any form estoppel .

 

21. Conflicting Terms. In the event of any conflict,
inconsistency or ambiguity between the terms of this Amendment and the Lease, the terms of this Amendment shall control.

 

22. Defined Terms. Capitalized terms not otherwise
defined herein shall have the meaning ascribed to them in the Lease.

 

23. Multiple Counterparts. This Amendment may be executed
in multiple counterparts, each of which shall be deemed an original and together shall constitute one and the same instrument.

 

24. Ratification. Except as expressly modified by this
Amendment, the Lease remains unmodified and in full force and effect.

 

[THE REMAINDER OF THIS PAGE IS INTENTIONALLY
LEFT BLANK]

 

[SIGNATURE PAGE FOLLOWS]

 

    	5

    	 

     

IN WITNESS WHEREOF, the parties have executed this Amendment
as of the day and year above first written.

 

“Landlord”

 

Canyon Portal II, LLC, an Arizona limited liability company

 

	By:	/s/ Al Spector	 
	 	 	 
	Name:	Al Spector	 
	 	 	 
	Title:	Manager	 

 

“Tenant”)

 

L’Auberge Orchards LLC, an Arizona limited liability company

 

	By:	/s/ Al Spector	 
	 	 	 
	Name:	Al Spector	 
	 	 	 
	Title:	Manager	 

 

    	6

    	 

     

 

 

Housing Units 418, 419, 436, 437 &
438

280 N. Highway 89A

 

LEASE

 

SEDONA, ARIZONA

 

Landlord: Canyon Portal II, L.L.C.

 

Tenant: L'Auberge Orchards LLC

 

Date: April 1, 2012

 

    	 

    	 

     

TABLE OF CONTENTS

 

	SECTION 1 – FUNDAMENTAL LEASE PROVISIONS	 	1
	 	 	 
	SECTION 2 – PREMISES	 	2
	 	 	 
	SECTION 3 – GENERAL PROVISIONS	 	2
	3.1	No Option	 	2
	3.2	Approval of Financial Statement	 	2
	3.3	No Co-Tenancy Requirement	 	2
	3.4	Name Change	 	2
	 	 	 	 
	SECTION 4 – LEASE TERMS	 	3
	4.1	Term	 	3
	4.2	Delay in Commencement	 	3
	4.3	Holding Over	 	3
	4.4	Abandonment	 	3
	4.5	Surrender of Premises	 	3
	4.6	Extension of Term	 	3
	 	 	 	 
	SECTION 5 – RENT, SECURITY DEPOSIT	 	3
	5.1	Rent	 	3
	5.2	Security Deposit	 	4
	5.3	(Deleted)	 	4
	5.4	Additional Rent	 	5
	 	 	 	 
	SECTION 6 – NO COUNTERCLAIM OR ABATEMENT OF RENT	 	5
	6.1	No Notice	 	5
	6.2	No conditional Payment	 	5
	 	 	 	 
	SECTION 7 – COMMON AREAS	 	5
	7.1	Use of Common Areas	 	5
	7.2	Parking Policy	 	6
	7.3	Parking Charges	 	6
	 	 	 	 
	SECTION 8 – USE OF PREMISES	 	6
	8.1	Use	 	6
	8.2	Prohibited Conduct	 	6
	8.3	Prescribed Conduct	 	6
	8.4	Operation of Premises – Intentionally Deleted	 	7
	 	 	 	 
	SECTION 9 – TENANT’S CONSTRUCTION FO IMPROVEMENTS	 	7
	9.1	Tenant’s Obligation	 	7
	9.2	Intentionally Deleted	 	7
	9.3	Written Approval	 	7
	9.4	Trade Fixtures	 	7

 

    	 

    	 

     

	SECTION 10 – TENANT OBLIGATIONS	 	8
	10.1	Payment by Tenant	 	8
	10.2	Payment by Landlord	 	8
	10.3	Proof of Payment	 	8
	10.4	Personal Property Taxes	 	8
	10.5	Premises Utilities	 	8
	10.6	Merchants Association	 	8
	 	 	 	 
	SECTION 11 – COMMON AREA MAINTENANCE – Intentionally Deleted	 	9
	 	 	 	 
	SECTION 12 – MAINTENANCE AND REPAIRS BY TENANT	 	9
	12.1	Tenant’s Obligation	 	9
	12.2	Prohibited Acts	 	9
	12.3	Rights of Landlord	 	9
	 	 	 	 
	SECTION 13 – REPAIR BY LANDLORD	 	9
	13.1	Repair by Landlord	 	9
	13.2	Hazardous Materials	 	10
	 	 	 	 
	SECTION 14 – LIENS	 	11
	14.1	No Liens	 	11
	14.2	Tenant’s Obligations	 	11
	14.3	Removal of Liens	 	11
	 	 	 	 
	SECTION 15 – INSURANCE	 	11
	15.1	Project Insurance	 	11
	15.2	Tenant’s Property	 	12
	15.3	Tenant’s Operations	 	12
	15.4	Certificate of Insurance	 	12
	15.5	Insurance Companies	 	12
	15.6	Failure to Procure Insurance	 	13
	15.7	Repair	 	13
	 	 	 	 
	SECTION 16 – DAMAGE OR DESTRUCTION	 	13
	16.1	Tenant Obligations	 	13
	16.2	Lease Termination	 	14
	 	 	 	 
	SECTION 17 – EASEMENTS	 	14
	 	 	 	 
	SECTION 18 – INDEMNIFICATION	 	14
	18.1	By Tenant	 	14
	18.2	By Landlord	 	15
	18.3	Waiver of Claims	 	15

 

    	 

    	 

     

	SECTION 19 – ASSIGNMENT AND SUBLETTING	 	15
	19.1	Landlord Consent	 	15
	19.2	In Writing	 	16
	19.3	Transfer Limitation	 	16
	19.4	Deleted	 	16
	 	 	 	 
	SECTION 20 – SUBJECT TO MASTER LEASE	 	16
	 	 	 	 
	SECTION 21 – DEFAULTS BY TENANT	 	16
	21.1	Event of Default	 	16
	21.2	Re-Enter of Premises	 	18
	21.3	Lease Termination	 	18
	21.4	Reletting	 	18
	21.5	Survival of Liability	 	18
	21.6	Cumulative Remedies	 	19
	21.7	Sublessee Defaults	 	19
	21.8	Repetitive Rent Payment Defaults	 	19
	21.9	Cure Period	 	20
	21.10	Late Charges	 	20
	 	 	 	 
	SECTION 22 – CONDEMNATION	 	20
	 	 	 	 
	SECTION 23 – TENANT’S WAIVER OF STATUTORY RIGHTS	 	20
	 	 	 	 
	SECTION 24 – WAIVER OF PERFORMANCE	 	21
	 	 	 	 
	SECTION 25 – REMEDIES CUMULATIVE	 	21
	 	 	 	 
	SECTION 26 – CONVEYANCE BY LANDLORD	 	21
	 	 	 	 
	SECTION 27 – NO PERSONAL LIABILITY TO LANDLORD	 	21
	 	 	 
	SECTION 28 – ATTORNEYS’ FEES	 	21
	 	 	 
	SECTION 29 – PROVISIONS SUBJECT TO APPLICABLE LAW	 	22
	 	 	 
	SECTION 30 – RIGHT TO CURE TENANT’S DEFAULTS	 	22
	 	 	 
	SECTION 31 – NOTICES	 	22
	 	 	 
	SECTION 32 – SIGNS	 	23
	 	 	 
	SECTION 33 – LANDLORD’S INSPECTIONS	 	23
	33.1	Inspection	 	23
	33.2	Presenting for Sale or Lease	 	23
	 	 	 	 
	SECTION 34 – ESTOPPEL CERTIFICATE	 	23

 

    	 

    	 

     

	SECTION 35 – WAIVER OF TRIAL BY JURY	 	24
	 	 	 
	SECTION 36 – RECORDING	 	24
	 	 	 
	SECTION 37 – SUBORDINATION	 	24
	 	 	 
	SECTION 38 – MISCELLANEOUS	 	25
	38.1	Definition of Tenant	 	25
	38.2	Tenant	 	25
	38.3	Gender and Number	 	25
	38.4	Modifications and Waivers	 	25
	38.5	Implied Warranties	 	25
	38.6	Binding Effect	 	25
	38.7	Severability	 	25
	38.8	Governing Law and Jurisdiction	 	26
	38.9	Entire Agreement	 	26
	38.10	Time is of the Essence	 	26
	38.11	Brokers	 	26

 

    	 

    	 

     

CANYON PORTAL II, L.L.C.

LEASE

 

SECTION 1 - FUNDAMENTAL LEASE PROVISIONS.

 

	Landlord:	Canyon Portal II, L.L.C., an Arizona limited liability company
	 	 
	Tenant:	L'Auberge Orchards LLC, an Arizona limited liability company
	 	 
	Trade Name:	N/A
	 	 	 
	Lease Term:	Commencement Date:	April 1, 2012
	 	 	 
	 	Termination Date:	March 31, 2017
	 	 	 
	 	Rent Commencement Date:	April 1, 2012
	 	 	 
	Premises:	5 hotel room units known as units 418, 419, 436, 437 and 438, and further reflected on Exhibit A.

 

	Minimum Monthly Base Rental:	Tenant shall pay to Landlord Ten Thousand Dollars ($10,000.00) on April 1, 2012. Beginning May 1, 2012 the Minimum Monthly Base Rental shall be Three Thousand Dollars ($3,000.00) for the period of May 1, 2012 through December 31, 2012. Thereafter, Rent shall be adjusted in accordance with Paragraph 5.1B.

 

Security Deposit: None Required

 

	Address of Landlord:	Canyon Portal II, L.L.C.
	 	6900 E. Camelback Road, #915
	 	Scottsdale, AZ 85251
	 	Telephone: (480) 941-0221
	 	Fax: (480) 990-9093

 

	Address of Tenant:	L'Auberge Orchards, LLC 
	 	301 L'Auberge Lane 
	 	Sedona, AZ 86336 
	 	Telephone: (928) 204-4313
	 	Fax: (928) 282-1064

 

	Only Permitted Uses:	Housing Units for employees of L'Auberge and/or Orchards
	 	 
	Guarantors:	None

 

    	 

    	 

     

The foregoing Fundamental
Lease Provisions are an integral part of this Lease, and each reference in the body of the Lease to any Fundamental Lease Provision
shall be construed to incorporate all of the terms set forth above with respect to such Provisions.

 

SECTION 2 - PREMISES.

 

Subject to the conditions
set forth herein, Landlord hereby leases to Tenant the Premises. A site plan showing the boundaries of the Premises and its relative
location within a larger commercial development comprised of four elements including the Trading Post Shops, Canyon Portal Shops,
North Retail Building, and Orchards (the "Project") is attached hereto as Exhibit A. Tenant's acceptance of the Premises
and Agreement to the terms of this Lease are not conditioned upon any representation by Landlord of the number of square feet in
the Premises. TENANT ACKNOWLEDGES THAT IT HAS INSPECTED THE PREMISES, IS FAMILIAR WITH ITS CONDITION AND ACCEPTS THE PREMISES IN
ITS PRESENT CONDITION "AS IS." EXCEPT AS EXPRESSLY SET FORTH IN THIS LEASE, LANDLORD HAS MADE NO REPRESENTATIONS OR WARRANTIES
CONCERNING THE PREMISES OR THE PROJECT.

 

SECTION 3 - GENERAL PROVISIONS.

 

3.1           No
Option. The submission of this Lease by Landlord, its agent or representative for examination or execution by Tenant does not
constitute an option or offer to lease the Premises upon the terms and conditions contained herein or a reservation of the Premises
in favor of Tenant, it being intended hereby that this Lease shall become binding upon Landlord only upon Landlord's delivery to
Tenant of a fully executed counterpart hereof.

 

3.2           Approval
of Financial Statement. This Lease is subject to Landlord's and Landlord's Lender's approval of a current financial statement
of Tenant. Tenant agrees to execute any and all documents Landlord's Lender may require and provide Landlord and Landlord's Lender
with credit and financial information as requested.

 

3.3           No
Co-Tenancy Requirement. Landlord reserves the right to effect such tenancies in the Project as Landlord, in the exercise of
its sole business judgment, shall determine to best promote the interest of the Project. Tenant is not relying on the fact, nor
does Landlord represent, that any specific tenant or kind of tenant or number of tenants shall, during the term of this lease,
occupy any space in the Project.

 

3.4           Name
Change. Landlord reserves the right to change the name of the Project from time to time during the term of this Lease.

 

    	2

    	 

     

SECTION 4 - LEASE TERM 

 

4.1          Term.
The term of this Lease (herein called the "Lease Term" or the "Term") shall commence on the Commencement Date
unless the Term is terminated sooner or extended as hereinafter provided.

 

4.2          Delay
in Commencement. If Landlord, for any reason whatsoever, cannot deliver possession of the Premises to Tenant at the commencement
of the Lease Term, this Lease shall not be void or voidable, nor shall Landlord be liable for any loss or damage resulting therefrom.
In the event of a delay in possession; however, there shall be a proportionate reduction of rent covering the period between the
commencement of the Lease Term and the time when Landlord can deliver possession of the Premises. Notwithstanding the foregoing,
no delay caused by the action or inaction of Tenant or Tenant's agents shall result in a reduction of rent.

 

4.3          Holding
Over. If Tenant, upon expiration or termination of this Lease, either by lapse of time or otherwise, remains in possession
of the Premises with Landlord's written consent, but without a new lease reduced to writing and duly executed, Tenant shall be
deemed to be occupying the Premises as a tenant from month to month, subject to all covenants, conditions and provisions of this
Lease. If Tenant remains in possession without Landlord's written consent, Tenant shall be deemed to be in wrongful hold over and
shall be subject to all the rights and remedies provided to Landlord under this Lease and by law, including but not limited to
forcible entry and detainer actions or other eviction processes. During any hold over period, whether with consent or wrongful,
the monthly rent shall be two hundred percent (200%) of Tenant's monthly rent payable during the last month of the Term of this
Lease.

 

4.4          Abandonment.
If Tenant, prior to the expiration of this Lease, relinquishes possession of the Premises without Landlord's written consent, such
relinquishment shall be deemed to be an abandonment of the Premises and an Event of Default under this Lease.

 

4.5          Surrender
of Premises. Upon any termination of this Lease for any reason, Tenant shall immediately surrender possession of the Premises
to Landlord in good and tenantable repair, reasonable wear and tear excepted, and shall surrender all keys and all copies of such
keys for the Premises to Landlord at the place then fixed for the payment of rent or other agreed upon location.

 

4.6          Extension
of Term. None

 

SECTION 5 - RENT. SECURITY DEPOSIT.

 

5.1          Rent.

 

A.           Tenant
shall pay to Landlord the Minimum Annual Base Rental set forth in Section 1 of this Lease in twelve (12) equal monthly installments
during each Lease Year, in advance, on the first day of each calendar month. The Minimum Annual Base Rental and Additional Charges
hereinafter provided for shall be paid in lawful money of the United States to Landlord at its address or at such other place as
Landlord may from time to time designate in writing.

 

    	3

    	 

     

B.           The
rent provided for in this Section 5.1 shall be subject to adjustment as described herein commencing January 1, 2013. The base for
computing the adjustment is the Consumers' Price Index for All Urban Consumers, United States Cities Average published by the United
States Department of Labor, Bureau of Labor Statistics (the "Index"), which is in effect on the date of the commencement
of the first day of the previous Lease year ("Beginning Index"). For example, the adjustment for year two would be based
on the Index for the first day of Lease year one. The Index published most immediately preceding the Adjustment Date in question
("Extension Index") is to be used in determining the amount of the adjustment. If the Extension Index has increased over
the Beginning Index, the base monthly rent for the following year shall be set by multiplying the base monthly rent for the previous
year, e.g., for the 12th Lease month, by a fraction, the numerator of which is the Extension Index and the denominator
of which is the Beginning Index. However, the adjustment to the rent shall be no less than three percent (3%) compounded per annum
of the base monthly rent provided in this Lease. As an example, if year one monthly rent is $1,000.00 and the three percent (3%)
is applicable each year, then monthly rent for years two through five would be: year two $1,030.00; year three - $1,060.90; year
four - $1,092.73; and year five $1,125.52.

 

If the Index is changed
so that the base year differs from that in effect when the Term commences, the Index shall be converted in accordance with the
conversion factor published by the United States Department of Labor, Bureau of Labor Statistics. If the Index is discontinued
or revised during the Term, such other government index or computation with which it is replaced shall be used in order to obtain
substantially the same result as would be obtained if the Index had not been discontinued or revised.

 

C.           Monthly
rent for the first month shall be paid on the date the Term commences. Monthly rent for any partial month shall be prorated at
the rate of one-thirtieth (1/30) of the monthly rent per day.

 

D.           All
rental amounts are "net" rent to Landlord. All Additional Charges (as described in this Lease) shall be deemed rent whether
or not expressly designated as such, and shall be paid in addition to the Minimum Annual Base Rental at the times and in the manner
provided for in this Lease.

 

5.2.         Security
Deposit. None Required.

 

5.3          (Deleted).

 

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5.4           Additional
Rent. In the event any additional usable square footage is acquired by the Tenant in its Premises due to alterations of or
improvements made on the original Premises (by way of example, the addition of a loft), the Minimum Annual Base Rent payable by
Tenant to Landlord under this Lease shall be increased, on a proportionate basis, to include the additional square footage utilized
by the Tenant.

 

SECTION 6 - NO COUNTERCLAIM OR ABATEMENT OF RENT.

 

6.1           No
Notice. Except as expressly provided herein, monthly rental and Additional Charges and all other sums payable by Tenant shall
be paid without notice, demand, counterclaim, setoff, recoupment, deduction or defense of any kind or nature and without abatement,
suspension, deferment, diminution or reduction. Except as expressly provided herein, Tenant waives all rights now or hereafter
conferred by statute or otherwise to quit, terminate or surrender this Lease or the Premises or any part thereof and to any abatement,
suspension, deferment, diminution or reduction of any sum payable by Tenant to Landlord.

 

6.2           No
Conditional Payment. NO PAYMENT BY TENANT OR RECEIPT BY LANDLORD OF A LESSER AMOUNT THAN THE TOTAL OF ALL SUMS DUE HEREUNDER
SHALL BE DEEMED TO BE OTHER THAN AN ACCOUNT OF THE EARLIEST STIPULATED RENT, NOR SHALL ANY ENDORSEMENT OR STATEMENT ON ANY CHECK,
OTHER PAYMENTS OR ANY ACCOMPANYING LETTER BE DEEMED AS ACCORD AND/OR SATISFACTION AND LANDLORD MAY ACCEPT SUCH CASH AND/OR NEGOTIATE
SUCH CHECK OR PAYMENT WITHOUT PREJUDICE TO LANDLORD'S RIGHT TO RECOVER THE BALANCE OF SUCH RENT OR PURSUE ANY OTHER REMEDY PROVIDED
IN THIS LEASE OR OTHERWISE, REGARDLESS OF WHETHER LANDLORD MAKES ANY NOTATION ON SUCH INSTRUMENT OF PAYMENT OR OTHERWISE NOTIFIES
TENANT THAT SUCH ACCEPTANCE, CASHING OR NEGOTIATION OF SUCH PAYMENT IS WITHOUT PREJUDICE TO ANY OF LANDLORD'S RIGHTS. TENANT SPECIFICALLY
WAIVES THE PROVISIONS OF A.R.S. 47-1207.

 

SECTION 7 - COMMON AREAS.

 

7.1           Use
of Common Areas. All facilities furnished by Landlord in the Project and designated for the general common use of occupants
of the Project, including Tenant hereunder, its officers, agents, employees and customers, shall at all times be subject to the
exclusive control and management of Landlord. Landlord shall have the right, from time to time, to change the area, level, location
and arrangement of parking areas and other Common Area facilities and to make all rules and regulations pertaining to and necessary
for the proper operation and maintenance thereof. Landlord shall have the exclusive right at any and all times to close any portion
of the Common Areas for the purpose of making repairs, changes or additions thereto; may change the size, area or arrangement of
the Common Areas; and may enter into agreements as Landlord deems appropriate for parking and ingress or egress.

 

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7.2          Parking
Policy. There will be reserved for Tenant two (2) parking spaces which are exclusively reserved on a 24 hour a day basis.

 

7.3          Parking
Charges. Landlord will establish a reasonable schedule of fees for all parking spaces in the Project in order to provide parking
for tenants, tourists and periodic visitors to the Project. Notwithstanding anything contained herein to the contrary, Landlord
has the right to meter the parking lot of the Project and charge an hourly fee to anyone who parks a vehicle in the lot. Landlord
reserves the right to regulate the parking at the Project to ensure that the parking lot is used on a long term basis by customers
of the Project and not tenants, employees, or the general public.

 

SECTION 8 - USE OF PREMISES.

 

8.1          Use.
Tenant shall use the Premises solely for the Permitted Uses set forth in the Fundamental Lease Provisions and not for any other
purpose. Tenant shall not use or permit the Premises to be used in violation of the laws, ordinances, regulations and requirements
of the United States, the State of Arizona, Coconino County, the City of Sedona or any subdivision or department thereof or any
other authority or agency having jurisdiction over the Premises or the Project.

 

8.2          Prohibited
Conduct. Except by prior written consent of Landlord, Tenant shall not:

 

A.           Use
or operate any machinery that, in Landlord's opinion, is harmful to the Premises or the Project or disturbing to other tenants
in the building of which the Premises is a part; use any loud speakers, televisions, stereos, radios or other devices in a manner
so as to be heard or seen outside the Premises.

 

B.           Do
or suffer to be done any act, matter or thing objectionable to the fire, casualty or liability insurance carriers whereby any insurance
now in force or hereafter to be placed on the Premises or the Project, or any part thereof, shall become void or suspended, or
whereby the same shall be rated as a more hazardous risk than at the date when Tenant receives possession of the Premises. In case
of a breach of this covenant, in addition to all other remedies of Landlord hereunder, Tenant agrees to pay to Landlord as additional
rent any and all increase or increases of premiums on insurance carried by Landlord on the Premises or the Project.

 

C.           Do
or cause to be done any act, matter or thing in violation of any federal, state, county or local law, statute, regulation, rule
or ordinance.

 

8.3          Prescribed
Conduct. At all times throughout the Lease Term, Tenant shall:

 

A.           Comply
with any and all requirements of any of the constituted public authorities and with the terms of any state or federal statute or
local ordinance or regulation applicable to Tenant or its use, safety, cleanliness or occupation of the Premises, and save Landlord
harmless from penalties, fines, costs, expenses or damages resulting from Tenant's failure to do so.

 

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B.           Give
Landlord prompt written notice of any accident, fire, pest infestation, or damage occurring on or to the Premises.

 

C.           Load
and unload goods at such times in the areas and through such entrances as may be designated for "Delivery" by Landlord.
Such trailers or trucks shall not be permitted to remain parked overnight in any area of the Project, whether loaded or unloaded.
Designated fire lanes shall not be used for the loading or unloading of merchandise, parking or standing of running vehicles at
any time. The unlawful use of such fire lanes may result in the towing of the offending vehicle and subject the owner or user thereof
to all applicable fines established by the City of Sedona and/or Landlord.

 

D.           Comply
with all reasonable rules and regulations of Landlord in effect at the time of the execution of this Lease or at any time
or times, and from time to time, promulgated by Landlord which Landlord, in its sole discretion, shall deem necessary in connection
with the Premises or the Project including but not limited to both the operation of Tenant's business during certain minimum days
and hours.

 

8.4          Operation
of Premises - Intentionally Deleted.

 

SECTION 9 - TENANT'S CONSTRUCTION OF IMPROVEMENTS.

 

9.1          Intentionally
Deleted.

 

9.2          Intentionally
Deleted.

 

9.3          Written
Approval. Tenant shall not make or cause to be made any alterations, additions or improvements to the Premises, without first
obtaining Landlord's written approval and consent. Tenant shall present to Landlord plans and specifications for such work at the
time approval is sought. Landlord may condition its approval upon the requirement that Tenant, or its contractor, secure and bear
the cost of a labor and materials payment bond. All alterations, improvements, additions and fixtures made or installed by Tenant
shall remain upon the Premises at the expiration or earlier termination of this Lease and shall become the property of Landlord.

 

9.4          Trade
Fixtures. Tenant shall not cut or drill into or secure any trade fixtures, apparatus or equipment of any kind to any part of
the Premises without first obtaining the written consent of Landlord, which shall not be unreasonably withheld. All furnishings,
equipment and machines installed by Tenant and that are not trade fixtures in the Premises shall remain the property of Tenant
subject to any lien provided Landlord by law and shall be removed at the expiration or earlier termination of this Lease, or any
renewal or extension thereof; provided, Tenant shall not at such time be in default under any covenant or agreement contained in
this Lease and provided further that in the event of such removal, Tenant shall promptly restore the Premises to its original order
and condition. Any such furnishings, trade fixtures, equipment and machines not removed at or prior to such termination of this
Lease shall be and become the property of Landlord.

 

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SECTION 10 - TENANT OBLIGATIONS.

 

10.1         Payment
by Tenant. Tenant shall pay and discharge punctually as and when the same shall become due and payable, each and every cost,
expense and obligation of every kind and nature, foreseen or unforseen, arising out of the possession, operation, maintenance,
alteration, repair, rebuilding, use or occupancy of the Premises. Tenant shall also pay and discharge punctually, as and when the
same shall become due and payable without penalty, personal property, business, occupation and occupational license taxes, water,
sewer, electricity and telephone charges and fees.

 

10.2         Payment
by Landlord. Tenant shall not be required to pay or reimburse Landlord for (i) any local, state or federal capital levy, franchise
tax, revenue tax, income tax, or profits tax of Landlord unless and to the extent such levy, tax or imposition is in lieu of or
a substitute for any other levy, tax or imposition now or later in existence upon or with respect to the Premises which, if such
other levy, tax or impostion were in effect, would be payable by Tenant under the provisions hereof; (ii) any estate, inheritance,
devolution, succession or transfer tax which may be imposed upon or with respect to any transfer (other than taxes in connection
with a conveyance by Landlord to Tenant) of Landlord's interest in the Premises; or (iii) any lien not of record as of the Commencement
Date arising from the unilateral acts or omissions of Landlord and unrelated to a default of Tenant under this Lease.

 

10.3         Proof
of Payment. Tenant, upon Landlord's request, shall furnish to Landlord within thirty (30) days thereafter proof of the payment
of any obligation to be paid by Tenant.

 

10.4         Personal
Property Taxes. Tenant shall be responsible for and shall pay before delinquency all taxes levied or assessed against any leasehold
interest or personal property of any kind owned or placed in, upon or about the Premises by Tenant. Tenant hereby agrees to protect
and hold harmless Landlord and the Premises from any liability for Tenant's share of any and all such taxes, assessments and charges
together with any interest, penalties or other charges thereby imposed, and from any sale or other proceedings to enforce payment
thereof, and to pay all such taxes, assessments and charges before delinquency and before same become a lien.

 

10.5         Premises
Utilities. Landlord pays utilities for the property, which average approximately Three Hundred Dollars ($300.00) per month
per unit. In no event shall Landlord be liable for any interruption or failure in the supply of any utilities to the Premises.

 

10.6         Merchants
Association. Not Applicable

 

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SECTION 11 - COMMON AREA MAINTENANCE. - Intentionally
Deleted

 

SECTION 12 - MAINTENANCE AND REPAIRS BY TENANT.

 

12.1         Tenant's
Obligation. Tenant shall keep and maintain in good order, condition and repair (including any such replacement, periodic painting
and restoration as is required for that purpose) the Premises and every part thereof and any and all appurtenances thereto wherever
located, including but not limited to, the exterior and interior portion of all doors, door checks, door locks, windows, plate
glass, store front, all plumbing and sewage facilities within the Premises, all alterations, improvements and installations made
by Tenant and any repairs required to be made due to burglary or other illegal entry into the Premises. Tenant shall maintain and
bear the expense of the light fixtures and bulbs, air-conditioning unit and filters, heating unit or furnace, janitorial services,
interior pest control, and the like.

 

12.2         Prohibited
Acts. Tenant shall not cause or permit accumulation of any debris or extraneous matter on the roof of the Premises and will
be responsible for any damage caused thereto by any acts of Tenant, its agents, servants, employees or contractors. Tenant shall
place any rubbish, broken down boxes, trash or other excess matter only in such containers as are authorized from time to time
by Landlord; keep the Premises (including all exterior surfaces and both sides of all glass) clean, orderly, sanitary and free
from objectionable odors and from insects, vermin, and other pests; and keep the outside areas and sidewalks immediately adjoining
the Premises clean and free from empty boxes, trash of any kind, ice and any other obstructions or safety hazards.

 

12.3         Rights
of Landlord. If Tenant refuses or fails to commence and complete repairs or maintenance required herein promptly and adequately,
Landlord may, but shall not be required to, make and complete the repairs or perform the maintenance. The cost of such repairs
or maintenance shall be paid immediately by Tenant to Landlord as additional rent upon demand.

 

SECTION 13 - REPAIR BY LANDLORD.

 

13.1         Repair
by Landlord. Landlord shall keep and maintain the foundation, exterior walls, floors and roof of the building in which the
Premises are located exclusive of doors, door frames, door checks, door locks, windows and window frames located in exterior building
walls. Landlord shall not, however, be required to make any such repairs when such repairs are the result of misuse or neglect
by Tenant, its agents, employees, invitees, licensees or contractors. Any repairs required to be made by reason of such Tenant
misuse or neglect shall be the responsibility of Tenant, the above provisions to the contrary notwithstanding. Except as provided
herein, Landlord shall have no obligation to alter or modify the Premises, or any part thereof, or to repair and maintain any plumbing,
heating, electrical, air-conditioning or other mechanical installation in the Premises. Under no circumstances shall Landlord be
obligated to repair, replace or maintain any plate glass or door or window glass no matter what the cause.

 

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13.2         Hazardous
Materials. Exclusive of Hazardous Materials normally associated with Tenant's permitted use, if any, Tenant covenants and agrees
not to use, generate, release, manage, treat, manufacture, store, or dispose of, on, under or about, or transport to or from (any
of the foregoing hereinafter a "Use") the Premises any Hazardous Materials (other than "De Minimis" amounts
(as defined below)). Tenant further covenants and agrees to pay all costs and expenses associated with enforcement, removal, remedial
or other governmental or regulatory actions, agreements or order threatened, instituted or completed pursuant to any Hazardous
Materials Laws, and all audits, tests, investigations, cleanup, reports and other such items incurred in connection with any efforts
to complete, satisfy or resolve any matters, issues or concerns, whether governmental or otherwise, arising out of or in any way
related to the Use of Hazardous Materials in any amount by Tenant, its employees, agents, invitees, subtenants, licensees, assignees
or contractors. For purposes of this Lease (i) the term "Hazardous Materials" shall include but not be limited to asbestos,
urea formaldehyde, polychlorinated biphenyls, automotive and petroleum products and byproducts (including, without limitation,
gasoline, diesel and other fuels, new, used and recycled oil, grease, brake fluid, antifreeze, and other automotive fluids installed
in or recovered from service vehicles or otherwise, and any other fuel additive, derivative, lubricant or byproduct generated,
stored or used in Tenant's business operation or otherwise occurring), pesticides, radioactive materials, hazardous wastes,
toxic substances and any other related or dangerous toxic or hazardous chemical, material or substance defined as hazardous or
regulated or as a pollutant or contaminant in, or the use of or exposure to which is prohibited, limited, governed or regulated
by, any Hazardous Materials Laws; (ii) the term "De Minimis" amounts shall mean, with respect to any given level of Hazardous
Materials, that such level or quantity of Hazardous Materials in any form or combination of forms (a) does not constitute a violation
of any Hazardous Materials Laws; and (b) is customarily employed in, or associated with, similar retail projects in Coconino County,
Arizona; and (iii) the term "Hazardous Materials Laws" shall mean any federal, state, county, municipal, local or other
statute, law, ordinance or regulation now or hereafter enacted which may relate or legislate the protection of human health or
the environment, including but not limited to the Comprehensive Environment Response, Compensation and Liability Act of 1980, 42
U.S.C. Section 9601, et seq.; the Hazardous Materials Transportation Act, 49 U.S.C. Section 1801, et seq.; the Resource
Conservation and Recovery Act, 42 U.S.C. Section 6901, et seq.; the Federal Water Pollution Control Act, 33 U.S.C. Section
1251, et leg.; the Toxic Substances Control Act of 1976, 15 U.S.C. Section 2601, et seq.; Ariz. Rev. Stat. Ann. Title 49
(The "Arizona Environmental Quality Act of 1986"); and any rules, regulations or guidelines adopted or promulgated pursuant
to any of the foregoing as they may be adopted, amended or replaced from time to time.

 

 

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SECTION 14 - LIENS.

 

14.1         No
Liens. Tenant shall have no authority to do any act or make any contract which may create or be the basis for any lien, mortgage
or other encumbrance upon any interest of Landlord in the Premises or which would cause any document to be recorded against the
Premises or the Project. Should Tenant cause any construction, alterations, rebuildings, restorations, replacements, changes, additions,
improvements or repairs to be made on the Premises, or cause any labor to be performed or material to be furnished thereon, therein
or thereto, neither Landlord nor the Premises shall under any circumstances be liable for the payment of any expense incurred or
for the value of any work done or material furnished, and Tenant shall be solely and wholly responsible to contractors, laborers
and materialmen for performing such labor and furnishing such material.

 

14.2         Tenant's
Obligations. The initial and any subsequent alterations or improvements made by Tenant to the Premises must be paid for by
Tenant when such alterations or improvements are made. Nothing in this Lease shall be construed to authorize Tenant, or any person
dealing with or under Tenant, to charge the rents of the Premises, or the property and buildings of which the Premises form a part,
or the interest of Landlord in the state of the Premises, with a mechanics' lien or encumbrance of any kind, and under no circumstances
shall Tenant be construed to be the agent, employee or representative of the Landlord in the making of any such improvements or
alterations to the Premises.

 

14.3         Removal
of Liens. If, because of any act or omission (or alleged act or omission) of Tenant, any mechanic's, materialman's, or other
lien, charge or order for the payment of money shall be filed or recorded against the Premises or against Landlord (whether or
not such lien, charge or order is valid or enforceable as such), Tenant shall, at its own expense, either cause the same to be
discharged of record pursuant to A.R.S. §33-1004, or otherwise cause such discharge, within ten (10) days after Tenant shall
have received notice of the filing thereof, or Tenant may, within such period, furnish to Landlord a bond satisfactory to Landlord
against such lien, charge or order, in which case Tenant shall have the right in good faith to contest the validity or amount thereof.

 

SECTION 15 - INSURANCE.

 

15.1         Project
Insurance. Landlord bears the risk of and may insure as a Common Area Expense as practical or as required by Landlord's Lender,
the operation of the Project as a whole or the common areas thereof. Such insurance may include, but is not limited to, general
liability, umbrella excess liability, bodily injury, public liability, property damage liability, fire and extended coverage in
amounts not less than eighty percent (80%) of the replacement cost of the Project, sign insurance and the like in coverage limits
selected by Landlord. Tenant shall pay to Landlord its "Proportionate Share" of such insurance as provided in Section
11 above.

 

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15.2        Tenant's
Property. Tenant agrees that all property owned by it in, on, or about the Premises shall be at the sole risk and hazard of
the Tenant. Landlord shall not be liable or responsible for any loss or damage to Tenant, or anyone claiming under or through Tenant,
or otherwise, whether caused by or resulting from a peril required to be insured hereunder, or from water, gas leakage,
plumbing, electricity or electrical apparatus, pipe or apparatus of any kind, the elements or other similar or dissimilar causes,
and whether or not originating in the Premises or elsewhere, irrespective of whether or not Landlord may be deemed to have been
negligent with respect thereto, and provided such damage or loss is not the result of any intentional and wrongful act of Landlord.
Tenant shall require all policies of risk insurance carried by it on its property in the Premises to contain or be endorsed with
the provision in and by which the insurer designated therein shall waive its right of subrogation against Landlord.

 

15.3        Tenant's
Operations. All operations conducted by Tenant shall be at Tenant's sole risk. In addition, Tenant shall procure insurance
for its operations as follows:

 

A.           Tenant
shall keep in force at its own expense public liability insurance and comprehensive general liability insurance, including contractual
liability insurance sufficient to cover all phases and aspects of the operation and conduct of its business, with minimum limits
of $2,000,000.00 on account of bodily injuries to or death of one person and $3,000,000.00 on account of bodily injuries to or
death of more than one person as a result of any one accident or disaster, and $2,000,000.00 as a result of damage to property.

 

B.           Tenant
shall keep and maintain in force during the Term hereof, plate glass insurance upon windows and doors in the Premises as required
by Landlord unless Landlord maintains such insurance on behalf of all Tenants and treats it as a Common Area Expense.

 

15.4         Certificate
of Insurance. Tenant shall provide annually to Landlord a Certificate of Insurance listing Landlord as an additional named
insured under the Tenant's policy of insurance.

 

15.5.        Insurance
Companies. The policies affording the insurance required by this Lease shall be with companies (rated A-[minus] VII or better,
A. M. Best's Key Rating Guide) authorized to do business in the State of Arizona and shall be in a form reasonably satisfactory
to Landlord, shall provide replacement cost coverage, shall name Landlord as an additional insured, and shall provide for payment
of loss thereunder to Landlord and Tenant as their interests may appear. The policies or certificates evidencing such insurance
shall be delivered to Landlord on or before the Commencement Date and renewals thereof shall be delivered to Landlord at least
thirty (30) days prior to the expiration dates of the respective policies. Alternatively, the insurance required by this Section
15 may be provided under a blanket policy to the Tenant's existing insurance policy.

 

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15.6.          Failure
to Procure Insurance. In the event Tenant shall fail to procure insurance required under this Lease or fail to maintain the
same in force continuously during the Term, or any extension thereof, Landlord shall be entitled to procure such insurance and
Tenant shall, upon demand, immediately reimburse Landlord for such premium expense or Landlord may declare Tenant in default under
this Lease.

 

15.7         Repair.
In the event of loss under any such policy or policies, Tenant shall promptly proceed with the repair and restoration of the damaged
or destroyed improvements in accordance with Section 16 of this Lease. The insurance proceeds, if less than $20,000.00, shall be
paid to Tenant for application to such repair, restoration or remediation, so long as (a) Tenant is not then in default under this
Lease, and (b) Tenant expressly covenants in writing with Landlord to expend such funds for the repair, restoration or remediation
of the Premises and the improvements therein, and to furnish Landlord with documentation evidencing such expenditure of funds for
work and improvements incorporated in the Premises within thirty (30) days following completion of such repair, restoration or
remediation. If the insurance proceeds exceed $20,000.00, the same shall be paid to and held in trust by the Landlord pursuant
to Section 16 of this Lease. All insurance proceeds described in this Section 15.7 shall be paid upon architects' certificates
and contractors', subcontractors' and materialmen's waivers of lien for the cost and expense of repair, restoration or remediation
of the damage. If at any time such insurance proceeds shall be insufficient to pay fully the cost of completion of such repair,
restoration or remediation, Tenant shall upon demand of Landlord pay a sufficient portion of such cost so that it shall appear
to the reasonable satisfaction of Landlord that the amount of insurance money in the hands of Tenant or Landlord, as applicable,
shall at all times be sufficient to pay for the completion of the repairs, restoration or remediation free and clear of all liens.
Upon the completion of the repairs, restoration or remediation, free and clear of all liens, any surplus of insurance monies shall
be paid to Tenant, provided that Tenant is not then in default hereunder. In the event that this Lease shall have been terminated
for any default of Tenant under any of the terms and provisions contained in this Lease, all proceeds of insurance in the hands
of Tenant or Landlord and all claims against insurers shall be and become the absolute property of Landlord.

 

SECTION 16 - DAMAGE OR DESTRUCTION.

 

16.1         Tenant
Obligations. In the event of damage to or destruction of any of the improvements on the Premises by fire or other casualty,
Tenant shall give Landlord immediate notice thereof and shall, at Tenant's own expense and whether or not the insurance proceeds
are sufficient for the purpose, promptly commence and thereafter diligently pursue completion of the repair, restoration or rebuilding
of the same so that upon completion of such repairs, restoration or rebuilding, the value and rental value of the improvements
shall be substantially equal to the value and rental value thereof immediately prior to the occurrence of such fire or other casualty.
Tenant hereby expressly waives any statutory right to terminate this Lease in the event of damage or destruction of the Premises
or all or any portion of the buildings or improvements thereon.

 

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16.2         Lease
Termination. Notwithstanding anything to the contrary contained herein, if the Premises should be rendered untenantable by
fire or other casualty during the last two (2) years of the Term to the extent of fifty percent (50%) or more of the replacement
cost of the Premises, Tenant shall have the option to terminate this Lease by notice to Landlord within sixty (60) days after the
occurrence of such damage or destruction. Upon termination, this Lease and the Term hereof shall cease and come to an end as of
the effective date of such notice (which shall be not less than thirty (30) nor more than ninety (90) days after the notice and
shall be specified in the notice). Any unearned rent or other charges shall be apportioned as of the effective date and Tenant
shall assign to Landlord all of its rights to the insurance proceeds arising out of damage or destruction to the improvements and
shall pay Landlord (when the information is ascertained) the difference between the value of the property damaged or destroyed,
prior to the damage or destruction, and the amount, if any, of the insurance proceeds.

 

SECTION 17 - EASEMENTS.

 

Landlord expressly
reserves all rights in and with respect to the use of the Premises as provided herein, including (without in any way limiting the
generality of the foregoing) the rights of Landlord to establish Common Areas and grant parking easements to others and to enter
upon the Premises and give easements to others for the purpose of installing, using, maintaining, renewing and replacing such overhead
or underground water, gas, sewer, and other pipe lines, and telephone, electric and power lines, cables and conduits as Landlord
may deem desirable in connection with the development or use of the other property in the Project or any other property in the
neighborhood thereof, whether owned by Landlord or not.

 

SECTION 18 - INDEMNIFICATION.

 

18.1.          By
Tenant. Excepting any responsibility allocated to Landlord by reason of its negligence (excluding from this exception, however,
any responsibility allocated to Landlord by reason of its failure to enforce the terms of this Lease), Tenant shall indemnify,
defend and hold Landlord harmless for, from and against all liabilities, obligations, claims, suits, damages, penalties, causes
of action, costs and expenses (including without limitation, reasonable attorneys' fees and expenses) imposed upon or asserted
against Landlord by reason of the acts or omissions of Tenant, its agents, employees, contractors, suppliers, licensees, invitees
and guests and/or the occurrence of any of the following during the Term: (i) any use, nonuse or condition of the Premises or any
part thereof; (ii) any accident, injury to or death of persons (including workmen) or loss of or damage to property occurring on
or about the Premises or any part thereof; (iii) any failure on the part of Tenant to perform or comply with any of the provisions
of this Lease; (iv) performance of any labor or services or the furnishings of any materials or other property in respect of the
Premises or any part thereof (excluding any such matters performed or furnished by or at the request of Landlord and unrelated
to a default of Tenant under this Lease); or (v) any failure on the part of Tenant to clean up and/or dispose of any Hazardous
Materials, as described in Section 13.2 above, in accordance with the requirements of this Lease and applicable law. In the event
Landlord should be made a defendant in any action, suit or proceeding brought by reason of any such occurrence, Tenant shall, at
its own expense, resist and defend such action, suit or proceeding or cause the same to be resisted and defended by legal counsel
designated by Tenant but approved by Landlord. If any such action, suit or proceeding should result in a final judgment against
Landlord, Tenant shall promptly satisfy and discharge such judgment or shall cause such judgment to be promptly satisfied and discharged.
The obligations of Tenant under this Section 18 arising by reason of any such occurrence taking place while this Lease is in effect
shall survive the termination of this Lease.

 

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18.2         By
Landlord. Landlord shall save, hold harmless and indemnify Tenant for, from and against all liabilities, obligations, claims,
suits, damages, penalties, causes of action, costs and expenses (including, without limitation, reasonable attorneys' fees and
expenses) imposed upon or asserted against Tenant by reason of the negligence of Landlord or its agents, contractors, servants
or employees.

 

18.3         Waiver
of Claims. Landlord and its agents, contractors, servants or employees and shall not be liable for, and Tenant hereby releases
all claims for, damage to persons and property sustained by Tenant or any person claiming through Tenant resulting from any theft,
fire, accident, occurrence or condition in, on or about the Premises or building of which they are a part, including, but not limited
to, such claims for damage resulting from (i) any defect in or failure of plumbing, heating or air-conditioning equipment, electric
wiring or installation thereof, water pipes, stairs, railings or walks; (ii) any equipment or appurtenances needing repair; (iii)
the bursting, leaking or running of any tank, wash stand, water closet, waste pipe, drain or any other pipe or tank in or about
the Premises; (iv) the backing up of any sewer pipe or down spout; (v) the escape of steam or hot water; (vi) water, snow or ice
being upon or coming through the roof or any other place upon or near the Premises or otherwise; (vii) the falling of any fixture,
plaster or stucco; and (viii) broken glass.

 

SECTION 19 - ASSIGNMENT AND SUBLETTING.

 

19.1         Landlord
Consent. Tenant shall not transfer or assign this Lease or any interest in this Lease or sublet the Premises or any portion
thereof without first obtaining the written consent of Landlord, which consent may be given or withheld in Landlord's sole discretion;
and any attempted transfer, assignment or subletting, including any involuntary transfers or assignments by operation of law, without
such consent shall be void and confer no rights upon any third person, and at the option of Landlord, shall cause a termination
of this Lease, in which event such third person shall occupy the Premises as a tenant at sufferance. The acceptance of any rent
payments by Landlord from any such alleged assignee shall not constitute approval of the assignment or subletting of this Lease
by Landlord. No transfer, assignment or subletting shall relieve Tenant of its liability for the full performance of all of the
provisions, agreements, covenants and conditions of this Lease. A consent by Landlord to one transfer, assignment or subletting
shall not operate as a waiver of this Section as to any future transfer, assignment or subletting, and this Section 19 shall apply
to any transferee, assignee or subtenant.

 

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19.2        In
Writing. Each transfer, assignment, and subletting to which there has been consent shall be by an instrument in writing in
form satisfactory to Landlord, and shall be executed by the transferor, assignor or sublessor; and the transferee, assignee, or
sublessee shall agree in writing for the benefit of Landlord to assume, to be bound by, and to perform the provisions, covenants
and conditions of this Lease to be done, kept and performed by Tenant. One executed copy of such written instrument shall be delivered
to Landlord. A consent to any transfer, assignment or subletting shall not constitute waiver or discharge of the provisions of
this paragraph with respect to a subsequent transfer, assignment or subletting. The acceptance of rent from any other person shall
not be deemed to be a waiver of any of the provisions of this Lease or a consent to the transfer, assignment or subletting of the
Premises.

 

19.3        Transfer
Limitation. If Tenant (including any entity later becoming Tenant) is a corporation, unincorporated association, limited liability
company or a partnership, the transfer (other than pursuant to the laws of devise and descent upon the death of a shareholder,
partner or owner), assignment or hypothecation of any stock or interest in such corporation, association, company or partnership
in the aggregate in excess of twenty percent (20%) from the time such entity becomes a Tenant hereunder, shall be deemed an assignment
within the meaning and provisions of this Section 19. The foregoing sentence shall not apply to a corporation of which the capital
stock is publicly traded on a recognized national stock exchange.

 

19.4        Deleted.

 

SECTION 20 - SUBJECT TO MASTER LEASE.

 

Tenant acknowledges
that this Lease is subordinate to a Master Lease of the Project among CANYON PORTAL PROPERTIES, L.L.C. and ATHERTON VENTURES, L.L.C.
as Landlord and CANYON PORTAL II, L.L.C., an Arizona limited liability company as Tenant. A Memorandum of Lease is recorded in
Coconino County as Instrument No. 98-21399 on July 2, 1998. An Amendment to Memorandum of Lease is recorded in Coconino County
as Instrument No. 3288292 on October 14, 2004.

 

SECTION 21 - DEFAULTS BY TENANT.

 

21.1        Event
of Default. Each of the following occurrences shall be an Event of Default hereunder:

 

A.           If
Tenant fails to pay any Rent, Additional Charges or any sum due hereunder promptly when due and such failure continues for three
(3) days after the date such payment was due.

 

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B.           If
Tenant defaults or breaches any of the other (non-monetary) covenants, agreements, conditions or undertakings herein to be kept,
observed and performed by Tenant and such default continues for ten (10) days after notice thereof in writing to Tenant.

 

C.           TENANT
ACKNOWLEDGES THAT ANY VIOLATION OF ANY OF THE PRESCRIBED CONDUCT AS SET FORTH IN PARAGRAPH 8.3 IS A MATERIAL BREACH OF THIS LEASE.
IF IN ANY TWELVE (12) MONTH PERIOD THERE ARE MORE THAN TWO (2) NOTICES OF VIOLATION OF PARAGRAPH 8.3 SENT BY LANDLORD TO TENANT,
THEN LANDLORD SHALL HAVE THE RIGHT TO TERMINATE THIS LEASE WITHOUT NOTICE.

 

TENANT'S INITIALS: ______________

 

D.           If
Tenant files any petition under any chapter or section of the Federal Bankruptcy Code or any similar law, state or federal, whether
now or hereafter existing, or shall file an answer admitting insolvency or inability to pay its debts.

 

E.           If
Tenant fails to obtain a stay of any involuntary proceedings under any chapter or section of the Federal Bankruptcy Code within
sixty (60) days after the institution thereof.

 

F.           If
a trustee or receiver is appointed for Tenant or for a major portion of its property or for any portion of the Premises and such
appointment is not vacated and dismissed within sixty (60) days thereafter and in any event prior to any action adverse to the
interest of Tenant or Landlord having been taken by such trustee or receiver.

 

G.           If
any court takes jurisdiction of a major portion of the property of Tenant or any part of the Premises in any involuntary proceeding
for dissolution, liquidation or winding up of Tenant and such jurisdiction is not relinquished or vacated within sixty (60) days.

 

H.           If
Tenant makes an assignment for the benefit of its creditors.

 

I.           If
Tenant fails to occupy and operate the business in the Premises for three (3) consecutive days (except as otherwise allowed under
Section 8.4).

 

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21.2         Re-Enter
of Premises. Upon the occurrence of any such Event(s) of Default and at any time thereafter, Landlord shall have the right,
at its election, to reenter the Premises, or any part thereof, either with or without process of law, and to expel, remove and
evict Tenant and all persons occupying or upon the same under Tenant, using such force as may be lawful and necessary in so doing,
and to possess the Premises and enjoy the same as in their former estate and to take full possession of and control over the Premises
and the buildings and improvements thereon and to have, hold and enjoy the same and to receive all rental income of and from the
same. No reentry by Landlord shall be deemed an acceptance of a surrender of this Lease, nor shall it absolve or discharge Tenant
from any liability under this Lease. Upon such reentry, all rights of Tenant to occupy or possess the Premises shall cease and
terminate.

 

21.3         Lease
Termination. Upon the occurrence of any such Event(s) of Default and at any time thereafter, Landlord shall have the right,
at its election, with or without reentry as provided in Section 21.2, to give written notice to Tenant stating that this Lease
shall terminate on the date specified by such notice, and upon the date specified in such notice this Lease and the Term hereby
demised and all rights of Tenant hereunder shall terminate. Upon such termination, Tenant shall quit and peacefully surrender to
Landlord the Premises and the buildings and improvements then situated thereon.

 

21.4         Relettinq.
At any time and from time to time after such reentry, Landlord may relet the Premises and the buildings and improvements thereon,
or any part thereof, in the name of Landlord or otherwise, for such term or terms (which may be greater or less than the period
which would otherwise have constituted the balance of the Term of this Lease), and on such conditions (which may include concessions
or free rental) as Landlord, in its reasonable discretion, may determine and may collect and receive the rental therefore. However,
in no event shall Landlord be under any obligation to relet the Premises and the buildings and improvements thereon, or any part
thereof, and Landlord shall in no way be responsible or liable for any failure to relet or for any failure to collect any rental
due upon any such reletting. Even though it may relet the Premises, Landlord shall have the right thereafter to terminate this
Lease and all of the rights of Tenant in or to the Premises. Nothing contained in the foregoing shall be deemed a waiver or relinquishment
by Tenant of any duty imposed by law on Landlord to mitigate its damages.

 

21.5         Survival
of Liability. Unless Landlord shall have notified Tenant in writing that it has elected to terminate this Lease, no such reentry
or action in lawful detainer or otherwise to obtain possession of the Premises shall relieve Tenant of its liability and obligations
under this Lease; and all such liability and obligations shall survive any such reentry. In the event of any such reentry, whether
or not the Premises and the buildings and improvements thereon, or any part thereof, shall have been relet, Tenant shall pay to
Landlord the entire rental and all other charges required to be paid by Tenant up to the time of such reentry of this Lease, and
thereafter Tenant, until the end of what would have been the Term of this Lease in the absence of such reentry, shall be liable
to Landlord, and shall pay to Landlord, as damages for Tenant's default:

 

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A.           The
amount of Minimum Annual Base Rental and additional charges which would be payable under this Lease by Tenant if this Lease were
still in effect, less

 

B.           The
net proceeds of any reletting, after deducting all of Landlord's expenses in connection with such reletting, including without
limitation all repossession costs, brokerage commissions, legal expenses, attorneys' fees, alteration costs and expenses of preparation
for such reletting.

 

Tenant shall be liable
for and pay such damages to Landlord on a monthly basis on the first day of each month and Landlord shall be entitled to recover
from Tenant monthly as the same shall arise. The excess, if any, in any month or months, of the net proceeds described in subparagraph
(B) above actually received by Landlord over the Minimum Annual Base Rental and Additional Charges described in subparagraph (A)
above shall belong to Landlord, provided that such excess shall be credited and applied against Tenant's future obligations arising
under this Section 21.5 as the same become due and payable by Tenant hereunder, and that Tenant shall remain liable for future
deficiencies, as applicable. Notwithstanding any such reentry without termination, Landlord may at any time thereafter, by written
notice to Tenant, elect to terminate this Lease for Tenant's previous breach.

 

21.6        Cumulative
Remedies. Each right and remedy of Landlord provided for in this Lease shall be cumulative and in addition to every other right
or remedy provided for in this Lease or now or hereafter existing at law or in equity or by statute or otherwise; and the exercise
or beginning of the exercise by Landlord of any one or more of such rights or remedies shall not preclude the simultaneous or later
exercise by Landlord of any or all other rights or remedies provided for in this Lease now or hereafter existing at law or in equity
or by statute or otherwise.

 

21.7        Sublessee
Defaults. Any violation of any covenant or provision of this Lease, whether by act or omission, by any sublessee or any other
persons occupying any portion of the Premises under the rights of Tenant shall be deemed a violation of such provision by Tenant
and a default under this Lease. Any such violation shall not be deemed to be a default hereunder if and so long as Tenant in good
faith and at its own expense takes and diligently pursues any and all steps it is entitled to take and which steps if completed
will cure said default.

 

21.8        Repetitive
Rent Payment Defaults. NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH 21.1 HEREOF TO THE CONTRARY, IF IN ANY ONE (1) PERIOD OF
TWELVE (12) CONSECUTIVE MONTHS, TENANT SHALL HAVE BEEN IN DEFAULT IN THE PAYMENT OF RENT HEREIN AT LEAST THREE (3) TIMES AND LANDLORD,
BECAUSE OF SUCH DEFAULTS, SHALL HAVE SERVED UPON TENANT WITHIN SUCH TWELVE (12) MONTH PERIOD THREE (3) OR MORE NOTICES OF LATE
PAYMENT, THEN THE FOURTH DEFAULT SHALL BE DEEMED TO BE A NONCURABLE DEFAULT AND LANDLORD SHALL BE ENTITLED TO IMMEDIATE POSSESSION
OF THE PREMISES.

 

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21.9        Cure
Period. Notwithstanding any other provision of this Section, Landlord agrees that if the default complained of, other than
for the payment of monies, is of such a nature that the same cannot be cured within the twenty (20) day period for curing as specified
in the written notice relating thereto, then such default shall be deemed to be cured if Tenant within such period of twenty (20)
days shall have commenced thereof and shall continue thereafter with all due diligence to effect such cure and does so complete
the same with the use of such diligence as aforesaid.

 

21.10        Late
Charges. A late charge in the amount of ten percent (10%) of the delinquent payment shall be assessed to any payment required
to be made by Tenant to Landlord under the terms of this Lease not received by Landlord within three (3) days after its due date
(regardless of whether Tenant has been given notice of such failure of payment). If Tenant tenders to Landlord a check that is
returned marked "NSF" or its equivalent, Tenant shall pay Landlord a payment in the amount of twenty percent (20%) of
the amount of such non-negotiable check. Tenant's failure to pay any such late charge within three (3) days after Landlord's written
demand therefor shall constitute an Event of Default hereunder. In addition to the payments set forth in the preceding two sentences,
Tenant shall pay Landlord interest at the rate of eighteen percent (18%) per annum from the date any payment is due until the date
such payment is actually received by Landlord.

 

SECTION 22 - CONDEMNATION.

 

If title to all or
any portion of the Premises is taken by a public or quasi-public authority under any statute or by right of eminent domain of any
governmental body, whether such loss or damage results from condemnation of part or all of the Premises, Tenant shall not be entitled
to participate or receive any part of the damages or award except where the same shall provide for Tenant's moving or other reimbursable
expenses, the portion thereof allocated to the taking of Tenant's trade fixtures, equipment and personal property or to a loss
of business by Tenant. Should any power of eminent domain be exercised after Tenant is in possession, such exercise shall not void
or impair this Lease unless the amount of the Premises so taken substantially and materially impairs the usefulness of the Premises
for the purposes for which they are leased in which case, either party may cancel this Lease by notice to the other within sixty
(60) days after such possession. Should only a portion of the Premises be taken and the Premises continue to be reasonably suitable
for Tenant's use, the rent shall be reduced from the date of such possession in direct proportion to the reduction in the square
footage of the Premises.

 

SECTION 23 - TENANT'S WAIVER OF STATUTORY RIGHTS.

 

In the event of any
termination of the Term (or any repossession of the Premises), Tenant so far as permitted by law, waives (i) any notice of reentry
or of the institution of legal proceedings to that end; and (ii) the benefits of any laws now or hereafter in force exempting property
from liability for rent or for debt.

 

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SECTION 24 - WAIVER OF PERFORMANCE.

 

No failure by Landlord
or Tenant to insist upon the strict performance of any term or condition hereof or to exercise any right, power or remedy consequent
upon a breach thereof and no submission by Tenant or acceptance by Landlord of full or partial rent during the continuance of any
such breach shall constitute a waiver of any such breach or of any such term. No waiver of any breach shall affect or alter this
Lease (which shall continue in full force and effect), or the respective rights of Landlord or Tenant with respect to any other
then-existing or subsequent breach.

 

SECTION 25 - REMEDIES CUMULATIVE.

 

Each right, power and
remedy provided for in this Lease now or hereafter existing at law, in equity or otherwise shall be cumulative and concurrent and
shall be in addition to every other right, power or remedy provided for in this Lease now or hereafter existing at law, in equity
or otherwise; and the exercise or beginning of the exercise of any one or more of the rights, powers or remedies provided for in
this Lease shall not preclude the simultaneous or later exercise of any or all such other rights, powers or remedies.

 

SECTION 26 - CONVEYANCE BY LANDLORD.

 

In the event Landlord
or any successor Landlord shall convey or otherwise dispose of the Premises, it shall thereupon be released from all liabilities
and obligations imposed upon Landlord under this Lease (except those accruing prior to such conveyance or other disposition) and
such liabilities and obligations shall be binding solely on the then owner of the Premises.

 

SECTION 27 - NO PERSONAL LIABILITY TO LANDLORD.

 

Tenant shall look solely
to Landlord's interest in the Premises for the satisfaction of any judgment or decree requiring the payment of money by Landlord
based upon any default under this Lease, and no other property or assets of Landlord, or any partner or member of, or shareholder
in, Landlord, shall be subject to levy, execution or other enforcement procedures for satisfaction of any such judgment or decree.

 

SECTION 28 - ATTORNEYS' FEES.

 

In the event Landlord
retains an attorney to enforce its rights under this Lease or to bring suit for possession of the Premises, for the recovery of
any sum due hereunder, or for any other relief against Tenant, declaratory or otherwise, arising out of a breach of any
term of this Lease, or in the event Tenant should bring any action for any relief against Landlord, declaratory or otherwise, arising
out of this Lease, the prevailing party shall be entitled to receive from the other party reasonable attorneys' fees and reasonable
costs and expenses, which shall be deemed to have accrued due to the commencement of such action and shall be enforceable whether
or not such action is prosecuted to judgment.

 

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SECTION 29 - PROVISIONS SUBJECT TO APPLICABLE LAW.

 

All rights, powers
and remedies provided herein shall be exercised only to the extent that the exercise thereof shall not violate any applicable law
and are intended to be limited to the extent necessary so that they shall not render this Lease invalid or unenforceable under
any applicable law. If any term of this Lease shall be held to be invalid, illegal or unenforceable, the validity of the other
terms of this Lease shall in no way be affected thereby.

 

SECTION 30 - RIGHT TO CURE TENANT'S DEFAULTS.

 

In the event Tenant
shall breach any term, covenant or provision of this Lease, Landlord may at any time, without notice, cure such breach for the
account and at the expense of Tenant. If Landlord at any time, by reason of such breach, is compelled to pay or elects to pay any
sum of money or to do any act that will require the payment of any sum of money, or is compelled to incur any expense, including
reasonable attorneys' fees, incurred in instituting, prosecuting or defending any actions or proceedings to enforce Landlord's
rights under this Lease or otherwise, the sum or sums so paid by Landlord, with all interest, costs and damages, shall be deemed
to be Additional Charges and shall be paid by Tenant to Landlord on the first day of the month following the incurring of such
expenses of the payment of such sums and shall include interest at the rate of eighteen percent (18%) per annum from the date Landlord
makes a payment until Tenant pays such Additional Charges in full.

 

SECTION 31 - NOTICES.

 

Any notice to be given
by Landlord or Tenant shall be given in writing and delivered in person or by overnight mail service to Landlord or Tenant, forwarded
by certified or registered mail, postage prepaid, or sent via facsimile transmission, to the address indicated in the Fundamental
Lease Provisions, unless the party giving any such notice has been notified, in writing, of a change of address. Any such notice
shall be deemed effective (a) upon receipt or refusal to accept delivery, if personally delivered; (b) on the next business day
following delivery to the overnight courier; (c) in the case of certified mailing, on the date of actual delivery as shown by the
addressee's receipt or upon the expiration of three (3) business days following the date of mailing, whichever occurs first; or
(d) in the case of facsimile transmission, upon receipt (a written confirmation of successful transmission from the transmitting
facsimile machine being prima facie evidence of such receipt).

 

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SECTION 32 - SIGNS.

 

Tenant shall not place,
alter, exhibit, inscribe, paint or affix any sign, awning, canopy, advertisement, notice or other lettering on any part of the
outside of the Premises, or of the building of which the Premises is a part, or inside the Premises if visible from the outside,
without first obtaining Landlord's written approval thereof, which shall not be unreasonably withheld, and if so approved, Tenant
shall maintain the same in good condition and repair. All signs shall comply with applicable ordinances or other governmental restrictions
and with all applicable rules and regulations then in force or as may be put in force and effect from time to time by any governmental
authority or by Landlord.

 

SECTION 33 - LANDLORD'S INSPECTIONS.

 

33.1         Inspection.
Landlord reserves the right to, at all reasonable times, by itself or by its duly authorized agents, employees and contractors,
and without notice to go upon and inspect the Premises and every part thereof, to enforce or carry out the provisions of this Lease,
to make, at its option, repairs, installations, alterations, improvements and additions to the Premises or the building of which
the Premises are a part, to perform any defaulted obligation of Tenant or for any other proper purposes. Landlord also reserves
the right to install or place upon or affix to the roof and exterior walls of the Premises: equipment, signs, displays, antennae
and any other object or structure of any kind, provided the same shall not interfere with Tenant's occupancy or materially impair
the structural integrity of the building of which the Premises are a part.

 

33.2         Presenting
for Sale or Lease. Landlord hereby reserves the right during usual business hours to enter the Premises and to show the same
for purposes of sale, lease or mortgage, and during the last six (6) months of the term of this Lease, or the extension thereof,
to exhibit the same to any prospective tenant, and to display appropriate signage for such sale or lease. Prospective purchasers
or tenants authorized by Landlord may inspect the Premises during reasonable hours at any time.

 

SECTION 34 - ESTOPPEL CERTIFICATE.

 

Tenant will execute,
acknowledge and deliver to Landlord, within three (3) days following request therefor, a certificate certifying (a) that this Lease
is unmodified and in full force (or, if there have been modifications, that the Lease is in full force and effect, as modified,
and stating the modifications); (b) the dates, if any, to which rent, Additional Charges and other sums payable hereunder have
been paid; (c) that no notice has been received by Tenant of any default which has not been cured, except as to defaults specified
in such certificate; and (d) this Lease is and shall be subordinate to any existing or future deed of trust, mortgage or security
agreement placed upon the Premises or the Project by the Landlord or owner of the Property. Any claim of Tenant in contradiction
of any of the foregoing matters must be set forth with specificity in the certificate. Any such certificate may be relied upon
by any prospective purchaser or encumbrancer of the Premises or any part thereof. Tenant's failure to deliver such certificate
within the time permitted hereby shall be conclusive upon Tenant that this Lease is in full force and effect, except to the extent
any modification has been represented by Landlord, and there are no uncured defaults in Landlord's performance, and that not more
than one month's rent has been paid in advance. In addition, at Landlord's option, after notice to Tenant and expiration of applicable
grace period under this Lease, such failure of Tenant to deliver such certificate shall constitute an Event of Default. Tenant
acknowledges and agrees that the promise to issue such statements pursuant hereto are a material consideration inducing Landlord
to enter into this Lease and that the breach of such promise shall be deemed a material breach of this Lease.

 

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SECTION 35 - WAIVER OF TRIAL BY JURY.

 

TENANT HEREBY WAIVES
ALL RIGHTS TO TRIAL BY JURY IN ANY CLAIM, ACTION, PROCEEDING OR COUNTERCLAIM BY EITHER LANDLORD OR TENANT AGAINST EACH OTHER ON
ANY MATTERS ARISING OUT OF OR IN ANY WAY CONNECTED WITH THIS LEASE, THE RELATIONSHIP OF LANDLORD AND TENANT, AND/OR TENANT'S USE
OR OCCUPANCY OF THE LEASED PREMISES. TENANT AGREES THAT EXCLUSIVE JURISDICTION FOR ALL LEGAL ACTIONS SHALL BE COCONINO COUNTY SUPERIOR
COURT.

 

SECTION 36 - RECORDING.

 

Neither this Lease
nor a memorandum thereof, may be recorded, or otherwise made public, by any means, without the express written consent of Landlord.
Any such recording or publication without such consent, shall, at Landlord's option, cause this Lease and all rights of Tenant
hereunder, to be immediately forfeited and of no further force and effect, provided, however, that Landlord shall have the right
to such action against Tenant, for damages resulting from such recording, as Landlord shall be entitled to by law.

 

SECTION 37 - SUBORDINATION.

 

This Lease is hereby
declared to be subject and subordinate to the lien of any present or future encumbrance or encumbrances upon the Premises or the
Project, irrespective of the time of execution or the time of recording of any such encumbrance or encumbrances. Landlord shall
use its good faith efforts to obtain for Tenant an attornment and non-disturbance agreement from any lender which has a lien on
the Premises. This subordination is subject to the right of Tenant upon a foreclosure or other action taken under any mortgage
by the holders thereof to have this Lease and the rights of Tenant hereunder not be disturbed but to continue in full force and
effect so long as Tenant shall not be in default hereunder. The word "encumbrance" as used herein includes mortgages,
deeds of trust or other similar instruments, and modifications, extensions, renewals and replacements thereof, and any and all
advances thereunder.

 

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SECTION 38 - MISCELLANEOUS.

 

38.1         Definition
of Tenant. The Term "Tenant" shall include legal representatives, successors and permitted assigns. All covenants
herein shall be made binding upon Tenant and construed to be equally applicable to and binding upon its agents, employees and others
claiming the right to be in the Premises or in the building or in the building through, under or above Tenant.

 

38.2         Tenant.
If more than one individual, firm, or corporation shall join as Tenant, singular context shall be construed to be plural wherever
necessary and the covenants of Tenant shall be the joint and several obligations of each party signing as Tenant and when the parties
signing as Tenant are partners, it shall be the obligation of the firm and of the individual members thereof.

 

38.3         Gender
and Number. Whenever from the context it appears appropriate, each item stated in the singular shall include the plural and
vice versa and the masculine, feminine, or neuter form shall included the masculine, feminine and neuter forms.

 

38.4         Modifications
and Waivers. No change, modification, or waiver of any provision of this Lease shall be valid or binding unless it is in writing
dated after the date hereof and signed by the parties intended to be bound. No waiver of any breach, term, or condition of this
Lease by either party shall constitute a subsequent waiver of the same or any other breach, term, or condition.

 

38.5         Implied
Warranties. OTHER THAN AS SET FORTH IN THIS LEASE, TENANT AND LANDLORD EXPRESSLY AGREE THAT THERE ARE AND SHALL BE NO IMPLIED
WARRANTIES OF MERCHANTABILITY, HABITABILITY, FITNESS FOR A PARTICULAR PURPOSE OR ANY OTHER KIND ARISING OUT OF THIS LEASE, AND
THERE ARE NO WARRANTIES WHICH EXTEND BEYOND THOSE EXPRESSLY SET FORTH IN THIS LEASE.

 

38.6         Binding
Effect. This Lease shall be binding upon and shall inure to the benefit of the parties and their respective heirs, personal
representatives, successors and assigns. This provision shall not be deemed to grant Tenant any right to assign this Lease or sublet
the Premises or any part thereof other than as provided in this Lease.

 

38.7         Severability.
To the fullest extent possible each provision of this agreement shall be interpreted in such fashion as to be effective and valid
under applicable law. If any provision of this Lease is declared void or unenforceable with respect to particular circumstances,
such provision shall remain in full force and effect in all other circumstances. If any provision of this Lease is declared void
or unenforceable, such provision shall be deemed severed from this Lease, which shall otherwise remain in full force and effect.

 

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38.8         Governing
Law and Jurisdiction. Except where preempted by the laws of the United States or the rules or regulations of any agency or
instrumentality thereof, this Lease is to be interpreted, construed and governed by the laws of the State of Arizona. The parties
irrevocably and unconditionally submit to the exclusive jurisdiction of the Superior Court of the State of Arizona for the County
of Coconino in connection with any legal action or proceeding arising out of or relating to this Lease and the parties waive any
objection relating to the basis for personal or in rem jurisdiction or to venue which it may now or hereafter have in any such
suit, action or proceeding.

 

38.9         Entire
Agreement. This instrument constitutes the sole and only agreement between Landlord and Tenant respecting the Premises, the
leasing of the Premises to the Tenant, or the Lease term herein specified, and correctly sets forth the obligations of the Landlord
and Tenant to each other as of its date. Any agreements or representations by the Landlord to the Tenant not expressly set forth
in this instrument are void and unenforceable. All prior agreements and understanding of the parties with respect to such subject
matter are hereby superseded. No representations, promises, agreements, or understandings contained in this Lease regarding the
subject matter hereof shall be of any force or effect unless in writing, executed by the party to be bound, and dated on or subsequent
to the date hereof. Captions and headings are for convenience only and shall not alter any provision or be used in the interpretation
of this Lease.

 

38.10         
Time is of the Essence. Time is of the essence of this Lease and each and every provision hereof. Any extension of time
granted for the performance of any duty under this Lease shall not be considered an extension of time for the performance of any
other duty under this Lease.

 

38.11         Brokers.
Tenant represents and warrants that it has not entered into any agreement with, nor otherwise had any dealings with, any broker
or agent in connection or execution of this Lease which could form the basis of any claim by any such broker or agent for a brokerage
fee or commission, finder's fee, or any other compensation of any kind or nature in connection with this Leasehold.

  

	LANDLORD: 	 	TENANT:
	 	 	 
	CANYON PORTAL II, L.L.C.,	 	L’AUBERGE ORCHARDS, LLC, 
	an Arizona limited liability company	 	an Arizona corporation
	 	 	 
	By:	/s/ Al Spector	 	By:	/s/ Al Spector
	 	Al Spector	 	 	Al Spector
	Its:	Manager	 	Its:	Manager

 

 

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List of Exhibits

 

A.           Project
Site Plan

 

    	 

    	 

     

 

State Route 89A

 

    	 

    	 

     

Exhibit Giii

  

SECOND AMENDMENT TO LEASE

 

(Sinagua Plaza II Storage Lease)

 

THIS SECOND AMENDMENT TO LEASE (“Amendment”)
executed and effective as of May 14, 2013 by and between Sinagua Plaza II, L.L.C., an Arizona limited liability company (“Landlord”)
and L’Auberge Orchards, LLC, an Arizona limited liability company (“Tenant”).

 

WHEREAS, Landlord and Tenant entered into
that certain Lease dated January 1, 2012 (“Original Lease”), as amended by that certain Amendment to Lease dated May
1, 2012 (“First Amendment”)(the Original Lease and First Amendment are hereby collectively referred to as the “Lease”),
whereby Landlord leased to Tenant and Tenant leased from Landlord 17 parking spaces located on the property commonly known as 320
N. Highway 89A, Sedona, Arizona, as described in the Original Lease and legally described on Exhibit A attached hereto;

 

WHEREAS, Landlord and Tenant desire to further
amend the terms of the Lease pursuant to the provisions of this Amendment.

 

NOW, THEREFORE, in consideration of the
above recitals, the mutual promises contained herein, and other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, Landlord and Tenant agree as follows:

 

1. Lease Term.

 

(a) The Lease Term is hereby extended to
the date which is the tenth (10th) anniversary of the date hereof.

 

(b) Section 5 of the Original Lease is hereby
deleted in its entirety and replaced with the following:

 

“Landlord grants to Tenant the right to extend the Lease
Term for one (1) additional period of ten (10) years. Such extension shall be upon the same terms and conditions as the Original
Lease, as modified by this Amendment.

 

(c) Notwithstanding anything herein or in
the Original Lease to the contrary, Tenant shall have the right to terminate this Lease at any time upon thirty (30) days prior
written notice to Landlord.

 

2. Rent. The total monthly Minimum Rent payable in accordance
with the Lease shall be $2,000 for the period commencing on the date hereof through the first (1st) anniversary of the date hereof.
Thereafter, the total monthly Minimum Rent payable under this Lease shall be increased on an annual basis an amount equal to three
percent (3%) of the Minimum Rent payable in the immediately preceding year.

 

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3. Common Area Expenses.
Following the first (1st) year of the term of this Lease, Tenant’s proportionate share of common area expenses
shall be adjusted for each year thereafter as follows: The base for computing the adjustment is the Consumers’ Price Index
for All Urban Consumers, United States Cities Average published by the United States Department of Labor, Bureau of Labor Statistics
(the “Index”), which is in effect on the date of the commencement of the first day of the previous Lease year (“Beginning
Index”). For example, the adjustment for year two would be based on the Index for the first day of Lease year one. The Index
published most immediately preceding the Adjustment Date in question (“Extension Index”) is to be used in determining
the amount of the adjustment. If the Extension Index has increased over the Beginning Index, the common area expenses for the following
year shall be set by multiplying the base monthly rent for the previous year, e.g., for the 12th Lease month, by a fraction, the
numerator of which is the Extension Index and the denominator of which is the Beginning Index. However, the adjustment to common
area expenses shall be no greater than three percent (3%) compounded per annum of the prior year’s common area expenses.

 

4. Certificate of Insurance. Section 8 of the Original
Lease is hereby deleted in its entirety and replaced with the following:

 

“Tenant shall provide annually to
Landlord a Certificate of Insurance listing Landlord as an additional insured.”

 

5. Premises Utilities. Landlord shall, at Landlord’s
expense, cause to the Premises to be properly lighted at all times in which the Project is open to the public for business.

 

6. Repair. Section 11 of the Lease is hereby deleted
in its entirety.

 

7.Damage or Destruction.Article 12 of the Lease is hereby
deleted in its entirety and replaced with the following:

 

“If all or any portion of the Premises or the Project
is damaged by fire or other casualty insurable under a standard fire insurance policy with a standard extended coverage endorsement,
Minimum Monthly Rental and Additional Rent shall abate and Landlord shall promptly repair as is necessary to replace the Premises
and when placed in such condition the Premises shall be deemed restored and rendered tenantable, such repair or rebuilding to be
commenced within a reasonable time after the occurrence. If such damage occurs in the last two years of the Lease Term or during
any Option Term, Tenant or Landlord shall have the option of terminating the Lease upon written notice to the other party. If Landlord’s
Lender requires that the insurance proceeds be used to retire the debt, Landlord shall have no obligation to rebuild, and this
Lease shall terminate upon notice to Tenant. Promptly following Landlord’s repair or rebuilding, Tenant, at Tenant’s
sole expense, shall repair or replace its stock in trade, fixtures, furniture, furnishings, floor coverings and equipment, and
if Tenant has closed, Tenant shall promptly reopen for business.”

 

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15. Waiver of Subrogation. Except with respect to Worker’s
Compensation, to which no waiver of subrogation will apply, each party hereby waives any and every right or cause of action for
the events which occur or accrue during the Lease Term for any and all loss of, or damage to, any of its property (whether or not
such loss or damage is caused by the fault or negligence of the other party or anyone for whom said other party may be responsible),
which loss or damage is covered by valid and collectible fire, extended coverage, “All Risk” or similar policies covering
real property, personal property or business interruption insurance policies, to the extent that such loss or damage is recovered
under said insurance policies. Said waivers shall be in addition to, and not in limitation or derogation of, any other waiver or
release contained in this Lease with respect to any loss or damage to property of the parties hereto. Written notice of the terms
of such mutual waivers shall be given to each insurance carrier and the insurance policies shall be properly endorsed, if necessary,
to prevent the invalidation of coverage by reason of said waivers.

 

16. . Indemnification.

 

a.   Section 14.1 of the Original
Lease is hereby deleted in its entirety and replaced with the following:

 

“By
Tenant. Excepting any responsibility allocated to Landlord by reason of its gross negligence
(excluding from this exception, however, any responsibility allocated to Landlord by reason of its failure to enforce the terms
of this Lease), Tenant shall indemnify, defend and hold Landlord harmless for, from and against all liabilities, obligations, claims,
suits, damages, penalties, causes of action, costs and expenses (including without limitation, reasonable attorneys’ fees
and expenses) imposed upon or asserted against Landlord by reason of the gross negligence or willful misconduct of Tenant, its
agents, employees, contractors, suppliers, licensees, invitees and guests and/or the occurrence of any of thefollowing during the
Term: (i) any use, non-use or condition of the Premises or any part thereof; (ii) any accident, injury to or death of persons (including
workmen) or loss of or damage to property occurring on or about the Premises or any part thereof; (iii) any failure on the part
of Tenant to perform or comply with any of the provisions of this Lease; (iv) performance of any labor or services or the furnishings
of any materials or other property in respect of the Premises or any part thereof (excluding any such matters performed or furnished
by or at the request of Landlord and unrelated to a default of Tenant under this Lease); or (v) any failure on the part of Tenant
to clean up and/or dispose of any Hazardous Materials, as described in Section 13.2 above, in accordance with the requirements
of this Lease and applicable law. In the event Landlord should be made a defendant in any action, suit or proceeding brought by
reason of any such occurrence, Tenant shall, at its own expense, resist and defend such action, suit or proceeding or cause the
same to be resisted and defended by legal counsel designated by Tenant but approved by Landlord. If any such action, suit or proceeding
should result in a final judgment against Landlord, Tenant shall promptly satisfy and discharge such judgment or shall cause such
judgment to be promptly satisfied and discharged. The obligations of Tenant under this Section 18 arising by reason of any such
occurrence taking place while this Lease is in effect shall survive the termination of this Lease.”

 

b. Section 14.2 of the Original Lease is
hereby deleted in its entirety and replaced with the following:

 

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“By Landlord.Landlord shall
save, hold harmless and indemnify Tenant for, from and against all liabilities, obligations, claims, suits, damages, penalties,
causes of action, costs and expenses (including, without limitation, reasonable attorneys’ fees and expenses) imposed upon
or asserted against Tenant by reason of the gross negligence or willful misconduct of Landlord or its agents, contractors, servants
or employees and/or the occurrence of any of the following during the Term: (i) any use or condition of the Premises or any part
thereof (which Landlord is required to maintain); (ii) any accident, injury to or death of persons (including workmen) or loss
of or damage to property occurring on or about the Common Areas; (iii) any failure on the part of Landlord to perform or comply
with any of the provisions of this Lease; and (iv) performance of any labor or services or the furnishings of any materials or
other property in respect of the Premises or any part thereof (excluding any such matters performed or furnished by or at the request
of Tenant). In the event Tenant should be made a defendant in any action, suit or proceeding brought by reason of any such occurrence,
Landlord shall, at its own expense, resist and defend such action, suit or proceeding or cause the same to be resisted and defended
by legal counsel designated by Landlord but approved by Tenant. If any such action, suit or proceeding should result in a final
judgment against Tenant, Landlord shall promptly satisfy and discharge such judgment or shall cause such judgment to be promptly
satisfied and discharged. The obligations of Landlord under this Section 18 arising by reason of any such occurrence taking place
while this Lease is in effect shall survive the termination of this Lease.”

 

17. Assignment and Subletting. Article 15 of the Original
Lease is hereby deleted in its entirety and replaced with the following:

 

“Tenant shall have the right to transfer or assign this
Lease or sublet all or any portion of the Premises without Landlord’s consent, but with prior written notice to Landlord;
provided, the assignee or subtenant expressly assumes all obligations of Tenant under the Lease. Notwithstanding the foregoing,
Landlord shall not have the right to consent to any assignment or subletting of this Lease or any portion of the Premises to an
entity which controls, is controlled by or is under common control with Tenant, and Landlord shall not withhold its consent to
any proposed assignee or subtenant with financial wherewithal equal to or superior to that of Tenant and who is actively engaged
in the hospitality industry.”

 

19. Estoppels. The period in which Tenant must respond
to a request for an estoppel pursuant to Section 29 of the Lease is hereby modified from seven (7) days to ten (10) business days.
In the event Tenant fails to respond within such ten (10) business day period, Tenant shall be deemed in default under Section
16.1 of the Lease, but in no event will Tenant’s failure to respond be deemed an acknowledgement of any proported facts contained
in any form estoppel .

 

20. Conflicting Terms. In the event of any conflict,
inconsistency or ambiguity between the terms of this Amendment and the Lease, the terms of this Amendment shall control.

 

21. Defined Terms. Capitalized terms not otherwise
defined herein shall have the meaning ascribed to them in the Lease.

 

22. Multiple Counterparts. This Amendment may be executed
in multiple counterparts, each of which shall be deemed an original and together shall constitute one and the same instrument.

 

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23. Ratification. Except as expressly modified by this
Amendment, the Lease remains unmodified and in full force and effect.

 

[THE REMAINDER OF THIS PAGE IS INTENTIONALLY
LEFT BLANK]

 

[SIGNATURE PAGE FOLLOWS]

 

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IN WITNESS WHEREOF, the parties have executed this Amendment
as of the day and year above first written.

 

“Landlord”

 

Sinagua Plaza II, L.L.C., an Arizona limited liability company

 

	By:	/s/ Al Spector	 
	 	 	 
	Name:	Al Spector	 
	 	 	 
	Title:	Manager	 

 

“Tenant”

 

L’Auberge Orchards, LLC, an Arizona limited liability
company

 

	By:	/s/ Al Spector	 
	 	 	 
	Name:	Al Spector	 
	 	 	 
	Title:	Manager	 

 

 

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AMENDMENT TO LEASE

 

This Amendment to Lease
(Amendment) is made this 1st day of May, 2012 by and between Sinagua Plaza II, LLC as Landlord ("Landlord")
and L'Auberge Orchards LLC as Tenant ("Tenant") and amends the Lease for Storage Space between Landlord and Tenant dated
January 1, 2012.

 

RECITALS

 

1.          Landlord
and Tenant entered into a Lease for Storage Space in the basement of the Landlord's shopping center at 320 N. Highway 89A, Sedona,
AZ 86336.

 

2.          Tenant
did not have sufficient cash flow during the months of January, February, March and April 2012 to pay Landlord the Rent that was
due.

 

3.          Tenant
has requested and Landlord has agreed to allow Tenant to defer payment of Rent during these months until the months of May, June,
July and August 2012 under the terms and conditions set forth in this Amendment.

 

It is agreed as follows:

 

1.           Paragraph
4A, Minimum Rent is amended as follows:

 

A.           Tenant
shall pay to Landlord the Minimum Rent in advance, on the first day of each calendar month, except that in 2012 for the months
of January, February, March and April, Rent shall be paid as follows: (I) January Rent will be paid in May, February Rent will
be paid in June, March Rent will be paid in July and April Rent will be paid in August This accommodation of deferred Rent is extended
to Tenant by Landlord provided that the revised Rent schedule stated in this Paragraph is adhered to in 2012. Should Tenant not
make Rent payments pursuant to this deferred Rent schedule, Tenant will be in default under this Lease.

 

2.           Full
Force and Effect. Except as modified by this Amendment, the Lease and each of its terms and conditions remains in full force
and effect. 

 

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	LANDLORD:	 	TENANT:
	 	 	 
	SINAGUA PLAZA II, LLC,	 	L’AUBERGE ORCHARDS, LLC,
	an Arizona limited liability company	 	an Arizona limited liability company
	 	 	 
	By:	JOHNAL CORPORATION, an Arizona corporation	 	 	 
	 	 	 	 	 
	Its:	Manager	 	By:	/s/ Al Spector
	 	 	 	 	Al Spector
	 	By:	/s/ John Carleton	 	Its:	Manager
	 	 	John Carleton	 	 	 
	 	Its:	President	 	 	 
	 	 	 	 	 	 
	 	By:	/s/ Al Spector	 	 	 
	 	 	Al Spector	 	 	 
	 	Its:	Vice President	 	 	 

 

    	 

    	 

     

LEASE FOR STORAGE SPACE

 

This LEASE FOR STORAGE
SPACE ("Lease"), is made this 1st day of January, 2012, by and between Sinagua Plaza II, LLC, an Arizona limited
liability company, having offices at 6900 E. Camelback Road, Suite 915, Scottsdale, AZ 85251 ("Landlord"), and L'Auberge
Orchards LLC, an Arizona limited liability company, having offices at 301 L'Auberge Lane, Sedona, AZ 86336 ("Tenant").

 

RECITALS

 

	 	1.	Landlord owns the Sinagua Plaza shopping center located at 320 N. Highway 89A in Sedona, Arizona. Sinagua Plaza is a retail shopping center with a very large basement storage area.

 

	 	2.	Tenant has stored furniture, fixtures and equipment including but not limited to a walk-in refrigerator and freezer in the basement storage area of Sinagua Plaza, free of charge, since January, 2009.

 

	 	3.	Tenant desires to continue to use the space for storage. Landlord agrees to permit Tenant to use the space for storage under the terms and conditions set forth below.

 

It is agreed as follows:

 

	 	1.	Premises. Landlord and Tenant agree that Tenant has used up to 3,000 square feet of space in the basement area. Tenant desires to continue to have this space available to it for current and future storage needs.

 

	 	2.	Commencement Date, The Commencement Date of this Lease is January 1, 2012.

 

	 	3.	Termination Date. The Termination Date of this Lease is December 31, 2017.

 

	 	4.	Minimum Rent, Commencing January 1, 2012, Minimum Rent shall be Two Thousand Dollars ($2,000.00) per month. Rent is due and payable in advance on or before the first day of each month and subject to adjustment as set forth below.

 

A.           Tenant
shall pay to Landlord the Minimum Rent in advance, on the first day of each calendar month. The Minimum Rent hereinafter provided
for shall be paid in lawful money of the United States to Landlord at its address or at such other place as Landlord may from time
to time designate in writing. 

 

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B.           The
Minimum Rent shall be subject to adjustment as described herein commencing in the second year of the Lease Term and for each year
thereafter as follows except for the first year of any Option Term, when rent shall be adjusted to Market Rent.

 

The base for computing
the adjustment is the Consumers' Price Index for All Urban Consumers, United States Cities Average published by the United States
Department of Labor, Bureau of Labor Statistics (the "Index"), which is in effect on the date of the commencement of
the first day of the previous Lease year ("Beginning Index"). For example, the adjustment for year two would be based
on the Index for the first day of Lease year one. The Index published most immediately preceding the Adjustment Date in question
("Extension Index") is to be used in determining the amount of the adjustment. If the Extension Index has increased over
the Beginning Index, the base monthly rent for the following year shall be set by multiplying the base monthly rent for the previous
year, e.g., for the 12th Lease month, by a fraction, the numerator of which is the Extension Index and the denominator
of which is the Beginning Index. However, the adjustment to the rent shall be no less than three percent (3%) compounded per annum
of the base monthly rent provided in this Lease. As an example, if year one monthly rent is $1,000.00 and the three percent (3%)
is applicable each year, then monthly rent for years two through five would be: year two - $1,030.00; year three - $1,060.90; year
four - $1,092.73; and year five $1,125.51.

 

If the Index is changed
so that the base year differs from that in effect when the Term commences, the Index shall be converted in accordance with the
conversion factor published by the United States Department of Labor, Bureau of Labor Statistics. If the Index is discontinued
or revised during the Term, such other government index or computation with which it is replaced shall be used in order to obtain
substantially the same result as would be obtained if the Index had not been discontinued or revised.

 

C.           Monthly
rent for the first month shall be paid on the date the Term commences. Monthly rent for any partial month shall be prorated at
the rate of one-thirtieth (1/30) of the monthly rent per day.

 

D.           All
rental amounts are "net" rent to Landlord.

 

5.          Options
to Renew. Provided that (i) this Lease is in full force and effect; (ii) Tenant is in possession of the Premises; and (iii)
Tenant has not been and is not in default under this Lease, Tenant shall have the right and option to further extend the Term of
this Lease for two (2) additional successive renewal periods of five (5) years each. The tenancy resulting from the exercise of
this option shall be upon the same terms and conditions as set forth in this Lease. The Minimum Rent for the first year of each
renewal period shall be adjusted upward or downward by Landlord in the first year of each renewal period based upon the prevailing
rates (Market Rent) for rents in Sinagua Plaza. Thereafter, for years 2, 3, 4 and 5 of each renewal period Rent shall increase
by three percent (3%) per year over the previous years Rent. The option for the renewal periods may be exercised only upon written
notice thereof to Landlord at least six (6) months prior to the Termination Date of this Lease. Within sixty (60) days after exercise
of any option for a renewal period, Landlord shall, in writing, notify Tenant of the Rent during the first year of the renewal
period. If Tenant fails to exercise any option during the period when the option is available, or if this Lease is in default or
is no longer in full force and effect for any reason, the applicable option shall be void.

 

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The first renewal period
shall commence on the date following the originally fixed Termination Date. The second renewal period shall commence on the date
following the termination date of the first renewal period.

 

6.          Size
and Configuration. Landlord and Tenant agree that the size and characteristics of the Premises will be at the sole discretion
of Landlord.

 

7.          Tenant's
Property. Tenant agrees that all property owned by it in, on, or about the Premises shall be at the sole risk and hazard of
the Tenant. Landlord shall not be liable or responsible for any loss or damage to Tenant, or anyone claiming under or through Tenant,
or otherwise, whether caused by or resulting from a peril required to be insured hereunder, or from water, gas leakage, plumbing,
electricity or electrical apparatus, pipe or apparatus of any kind, the elements or other similar or dissimilar causes, and whether
or not originating in the Premises or elsewhere, irrespective of whether or not Landlord may be deemed to have been negligent with
respect thereto, and provided such damage or loss is not the result of any intentional and wrongful act of Landlord. Tenant shall
require all policies of risk insurance carried by it on its property in the Premises to contain or be endorsed with the provision
in and by which the insurer designated therein shall waive its right of subrogation against Landlord.

 

8.          Certificate
of Insurance. Tenant shall provide annually to Landlord a Certificate of Insurance listing Landlord as an additional named
insured and Barrett Realty LLC as an additional named insured under the Tenant's policy of insurance.

 

9.          Insurance
Companies. The policies affording the insurance required by this Lease shall be with companies (rated A-[minus] VII or better,
A. M. Best's Key Rating Guide) authorized to do business in the State of Arizona and shall be in a form reasonably satisfactory
to Landlord, shall provide replacement cost coverage, shall name Landlord as an additional insured, and shall provide for payment
of loss thereunder to Landlord and Tenant as their interests may appear. The policies or certificates evidencing such insurance
shall be delivered to Landlord on or before the Commencement Date and renewals thereof shall be delivered to Landlord at least
thirty (30) days prior to the expiration dates of the respective policies. Alternatively, the insurance required by this Section
15 may be provided under a blanket policy to the Tenant's existing insurance policy. 

 

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10.         Failure
to Procure Insurance. In the event Tenant shall fail to procure insurance required under this Lease or fail to maintain the
same in force continuously during the Term, or any extension thereof, Landlord shall be entitled to procure such insurance and
Tenant shall, upon demand, immediately reimburse Landlord for such premium expense or Landlord may declare Tenant in default under
this Lease.

 

11.         Repair.
In the event of loss under any such policy or policies, Tenant shall promptly proceed with the repair and restoration of the damaged
or destroyed improvements. The insurance proceeds, if less than $20,000.00, shall be paid to Tenant for application to such repair,
restoration or remediation, so long as (a) Tenant is not then in default under this Lease, and (b) Tenant expressly covenants in
writing with Landlord to expend such funds for the repair, restoration or remediation of the Premises and the improvements therein,
and to furnish Landlord with documentation evidencing such expenditure of funds for work and improvements incorporated in the Premises
within thirty (30) days following completion of such repair, restoration or remediation. If the insurance proceeds exceed $20,000.00,
the same shall be paid to and held in trust by the Landlord. All insurance proceeds described in this Paragraph 11 shall be paid
upon architects' certificates and contractors', subcontractors' and materialmen's waivers of lien for the cost and expense of repair,
restoration or remediation of the damage. If at any time such insurance proceeds shall be insufficient to pay fully the cost of
completion of such repair, restoration or remediation, Tenant shall upon demand of Landlord pay a sufficient portion of such cost
so that it shall appear to the reasonable satisfaction of Landlord that the amount of insurance money in the hands of Tenant or
Landlord, as applicable, shall at all times be sufficient to pay for the completion of the repairs, restoration or remediation
free and clear of all liens. Upon the completion of the repairs, restoration or remediation, free and clear of all liens, any surplus
of insurance monies shall be paid to Tenant, provided that Tenant is not then in default hereunder. In the event that this Lease
shall have been terminated for any default of Tenant under any of the terms and provisions contained in this Lease, all proceeds
of insurance in the hands of Tenant or Landlord and all claims against insurers shall be and become the absolute property of Landlord.

 

12.         Damage
or Destruction. 

 

12.1 Tenant Obligations.
In the event of damage to or destruction of any of the improvements on the Premises by fire or other casualty, Tenant shall give
Landlord immediate notice thereof and shall, at Tenant's own expense and whether or not the insurance proceeds are sufficient for
the purpose, promptly commence and thereafter diligently pursue completion of the repair, restoration or rebuilding of the same
so that upon completion of such repairs, restoration or rebuilding, the value and rental value of the improvements shall be substantially
equal to the value and rental value thereof immediately prior to the occurrence of such fire or other casualty. Tenant hereby expressly
waives any statutory right to terminate this Lease in the event of damage or destruction of the Premises or all or any portion
of the buildings or improvements thereon.

 

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12.2 Lease Termination.
Notwithstanding anything to the contrary contained herein, if the Premises should be rendered untenantable by fire or other casualty
during the last two (2) years of the Term to the extent of fifty percent (50%) or more of the replacement cost of the Premises,
Tenant shall have the option to terminate this Lease by notice to Landlord within sixty (60) days after the occurrence of such
damage or destruction. Upon termination, this Lease and the Term hereof shall cease and come to an end as of the effective date
of such notice (which shall be not less than thirty (30) nor more than ninety (90) days after the notice and shall be specified
in the notice). Any unearned rent or other charges shall be apportioned as of the effective date and Tenant shall assign to Landlord
all of its rights to the insurance proceeds arising out of damage or destruction to the improvements and shall pay Landlord (when
the information is ascertained) the difference between the value of the property damaged or destroyed, prior to the damage or destruction,
and the amount, if any, of the insurance proceeds.

 

13.         Easements.
Landlord expressly reserves all rights in and with respect to the

use of the Premises as provided herein, including (without in any way limiting the generality of the foregoing) the rights of Landlord
to establish Common Areas and grant parking easements to others and to enter upon the Premises and give easements to others for
the purpose of installing, using, maintaining, renewing and replacing such overhead or underground water, gas, sewer, and other
pipe lines, and telephone, electric and power lines, cables and conduits as Landlord may deem desirable in connection with the
development or use of the other property in the Project or any other property in the neighborhood thereof, whether owned by Landlord
or not.

 

14.         Indemnification.

 

14.1. By Tenant.
Excepting any responsibility allocated to Landlord by reason of its negligence (excluding from this exception, however, any responsibility
allocated to Landlord by reason of its failure to enforce the terms of this Lease), Tenant shall indemnify, defend and hold Landlord
harmless for, from and against all liabilities, obligations, claims, suits, damages, penalties, causes of action, costs and expenses
(including without limitation, reasonable attorneys' fees and expenses) imposed upon or asserted against Landlord by reason of
the acts or omissions of Tenant, its agents, employees, contractors, suppliers, licensees, invitees and guests and/or the occurrence
of any of the following during the Term: (i) any use, non-use or condition of the Premises or any part thereof; (ii) any accident,
injury to or death of persons (including workmen) or loss of or damage to property occurring on or about the Premises or any part
thereof; (iii) any failure on the part of Tenant to perform or comply with any of the provisions of this Lease; (iv) performance
of any labor or services or the furnishings of any materials or other property in respect of the Premises or any part thereof (excluding
any such matters performed or furnished by or at the request of Landlord and unrelated to a default of Tenant under this Lease);
or (v) any failure on the part of Tenant to clean up and/or dispose of any Hazardous Materials, as described in Section 13.2 above,
in accordance with the requirements of this Lease and applicable law. In the event Landlord should be made a defendant in any action,
suit or proceeding brought by reason of any such occurrence, Tenant shall, at its own expense, resist and defend such action, suit
or proceeding or cause the same to be resisted and defended by legal counsel designated by Tenant but approved by Landlord. If
any such action, suit or proceeding should result in a final judgment against Landlord, Tenant shall promptly satisfy and discharge
such judgment or shall cause such judgment to be promptly satisfied and discharged. The obligations of Tenant under this Section
18 arising by reason of any such occurrence taking place while this Lease is in effect shall survive the termination of this Lease.

 

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14.2        By
Landlord. Landlord shall save, hold harmless and indemnify Tenant for, from and against all liabilities, obligations, claims,
suits, damages, penalties, causes of action, costs and expenses (including, without limitation, reasonable attorneys' fees and
expenses) imposed upon or asserted against Tenant by reason of the negligence of Landlord or its agents, contractors, servants
or employees.

 

15.         Assignment
and Subletting. Tenant shall not transfer or assign this Lease or any interest in this Lease or sublet the Premises or any
portion thereof without first obtaining the written consent of Landlord, which consent may be given or withheld in Landlord's sole
discretion; and any attempted transfer, assignment or subletting, including any involuntary transfers or assignments by operation
of law, without such consent shall be void and confer no rights upon any third person, and at the option of Landlord, shall cause
a termination of this Lease, in which event such third person shall occupy the Premises as a tenant at sufferance. The acceptance
of any rent payments by Landlord from any such alleged assignee shall not constitute approval of the assignment or subletting of
this Lease by Landlord. No transfer, assignment or subletting shall relieve Tenant of its liability for the full performance of
all of the provisions, agreements, covenants and conditions of this Lease. A consent by Landlord to one transfer, assignment or
subletting shall not operate as a waiver of this Section as to any future transfer, assignment or subletting, and this Section
15 shall apply to any transferee, assignee or subtenant.

 

16.         Defaults
by Tenant.

 

16.1        Event
of Default. Each of the following occurrences shall be an Event of Default hereunder:

 

A.           If
Tenant fails to pay any Rent, Additional Charges or any sum due hereunder promptly when due and such failure continues for three
(3) days after the date such payment was due.

  

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B.           If
Tenant defaults or breaches any of the other (non-monetary) covenants, agreements, conditions or undertakings herein to be kept,
observed and performed by Tenant and such default continues for ten (10) days after notice thereof in writing to Tenant.

 

C.           If
Tenant files any petition under any chapter or section of the Federal Bankruptcy Code or any similar law, state or federal, whether
now or hereafter existing, or shall file an answer admitting insolvency or inability to pay its debts.

 

D.           If
Tenant fails to obtain a stay of any involuntary proceedings under any chapter or section of the Federal Bankruptcy Code within
sixty (60) days after the institution thereof.

 

E.           If
a trustee or receiver is appointed for Tenant or for a major portion of its property or for any portion of the Premises and such
appointment is not vacated and dismissed within sixty (60) days thereafter and in any event prior to any action adverse to the
interest of Tenant or Landlord having been taken by such trustee or receiver.

 

F.           If
any court takes jurisdiction of a major portion of the property of Tenant or any part of the Premises in any involuntary proceeding
for dissolution, liquidation or winding up of Tenant and such jurisdiction is not relinquished or vacated within sixty (60) days.

 

G.           If
Tenant makes an assignment for the benefit of its creditors.

 

16.2        Re-Enter
of Premises. Upon the occurrence of any such Event(s) of Default and at any time thereafter, Landlord shall have the right,
at its election, to reenter the Premises, or any part thereof, either with or without process of law, and to expel, remove and
evict Tenant and all persons occupying or upon the same under Tenant, using such force as may be lawful and necessary in so doing,
and to possess the Premises and enjoy the same as in their former estate and to take full possession of and control over the Premises
and the buildings and improvements thereon and to have, hold and enjoy the same and to receive all rental income of and from the
same. No reentry by Landlord shall be deemed an acceptance of a surrender of this Lease, nor shall it absolve or discharge Tenant
from any liability under this Lease. Upon such reentry, all rights of Tenant to occupy or possess the Premises shall cease and
terminate.

 

16.3        Lease
Termination. Upon the occurrence of any such Event(s) of Default and at any time thereafter, Landlord shall have the right,
at its election, with or without reentry as provided in Section 16.2, to give written notice to Tenant stating that this Lease
shall terminate on the date specified by such notice, and upon the date specified in such notice this Lease and the Term hereby
demised and all rights of Tenant hereunder shall terminate. Upon such termination, Tenant shall quit and peacefully surrender to
Landlord the Premises and the buildings and improvements then situated thereon.

 

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16.4        Relettinq.
At any time and from time to time after such reentry, Landlord may re-let the Premises and the buildings and improvements thereon,
or any part thereof, in the name of Landlord or otherwise, for such term or terms (which may be greater or less than the period
which would otherwise have constituted the balance of the Term of this Lease), and on such conditions (which may include concessions
or free rental) as Landlord, in its reasonable discretion, may determine and may collect and receive the rental therefore. However,
in no event shall Landlord be under any obligation to re-let the Premises and the buildings and improvements thereon, or any part
thereof, and Landlord shall in no way be responsible or liable for any failure to re-let or for any failure to collect any rental
due upon any such re-letting. Even though it may re-let the Premises, Landlord shall have the right thereafter to terminate this
Lease and all of the rights of Tenant in or to the Premises. Nothing contained in the foregoing shall be deemed a waiver or relinquishment
by Tenant of any duty imposed by law on Landlord to mitigate its damages.

 

16.5        Survival
of Liability. Unless Landlord shall have notified Tenant in writing that it has elected to terminate this Lease, no such reentry
or action in lawful detainer or otherwise to obtain possession of the Premises shall relieve Tenant of its liability and obligations
under this Lease; and all such liability and obligations shall survive any such reentry. In the event of any such reentry, whether
or not the Premises and the buildings and improvements thereon, or any part thereof, shall have been re-let, Tenant shall pay to
Landlord the entire rental and all other charges required to be paid by Tenant up to the time of such reentry of this Lease, and
thereafter Tenant, until the end of what would have been the Term of this Lease in the absence of such reentry, shall be liable
to Landlord, and shall pay to Landlord, as damages for Tenant's default:

 

A.           The
amount of Minimum Base Rent which would be payable under this Lease by Tenant if this Lease were still in effect, less

 

B.           The
net proceeds of any re-letting, after deducting all of Landlord's expenses in connection with such re-letting, including without
limitation all repossession costs, brokerage commissions, legal expenses, attorneys' fees, alteration costs and expenses of preparation
for such re-letting.

 

Tenant shall be liable
for and pay such damages to Landlord on a monthly basis on the first day of each month and Landlord shall be entitled to recover
from Tenant monthly as the same shall arise. The excess, if any, in any month or months, of the net proceeds described in subparagraph
(B) above actually received by Landlord over the Minimum Base Rent described in subparagraph (A) above shall belong to Landlord,
provided that such excess shall be credited and applied against Tenant's future obligations arising under this Section 16.5 as
the same become due and payable by Tenant hereunder, and that Tenant shall remain liable for future deficiencies, as applicable.
Notwithstanding any such reentry without termination, Landlord may at any time thereafter, by written notice to Tenant, elect to
terminate this Lease for Tenant's previous breach.

 

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16.6         Cumulative
Remedies. Each right and remedy of Landlord provided for in this Lease shall be cumulative and in addition to every other right
or remedy provided for in this Lease or now or hereafter existing at law or in equity or by statute or otherwise; and the exercise
or beginning of the exercise by Landlord of any one or more of such rights or remedies shall not preclude the simultaneous or later
exercise by Landlord of any or all other rights or remedies provided for in this Lease now or hereafter existing at law or in equity
or by statute or otherwise.

 

16.7         Sublessee
Defaults. Any violation of any covenant or provision of this Lease, whether by act or omission, by any sublessee or any other
persons occupying any portion of the Premises under the rights of Tenant shall be deemed a violation of such provision by Tenant
and a default under this Lease. Any such violation shall not be deemed to be a default hereunder if and so long as Tenant in good
faith and at its own expense takes and diligently pursues any and all steps it is entitled to take and which steps if completed
will cure said default.

 

16.8         Repetitive
Rent Payment Defaults.  NOTWITHSTANDING THE PROVISIONS OF THIS LEASE TO THE CONTRARY, IF IN ANY ONE (1) PERIOD OF
TWELVE (12) CONSECUTIVE MONTHS, TENANT SHALL HAVE BEEN IN DEFAULT IN THE PAYMENT OF RENT HEREIN AT LEAST THREE (3) TIMES AND LANDLORD,
BECAUSE OF SUCH DEFAULTS, SHALL HAVE SERVED UPON TENANT WITHIN SUCH TWELVE (12) MONTH PERIOD THREE (3) OR MORE NOTICES OF LATE
PAYMENT, THEN THE FOURTH DEFAULT SHALL BE DEEMED TO BE A NON-CURABLE DEFAULT AND LANDLORD SHALL BE ENTITLED TO IMMEDIATE POSSESSION
OF THE PREMISES.

 

16.9         Cure
Period. Notwithstanding any other provision of this Section, Landlord and Tenant agree that if the default complained of, other
than for the payment of monies, is of such a nature that the same cannot be cured within the twenty (20) day period for curing
as specified in the written notice relating thereto, then such default shall be deemed to be cured by the other party within such
period of twenty (20) days if the other party shall have commenced thereof and shall continue thereafter with all due diligence
to effect such cure and does so complete the same with the use of such diligence as aforesaid.

 

16.10        Late
Charges. A late charge in the amount of ten percent (10%) of the delinquent payment shall be assessed to any payment required
to be made by Tenant to Landlord under the terms of this Lease not received by Landlord within three (3) days after its due date
(regardless of whether Tenant has been given notice of such failure of payment). If Tenant tenders to Landlord a check that is
returned marked "NSF" or its equivalent, Tenant shall pay Landlord a payment in the amount of twenty percent (20%) of
the amount of such non-negotiable check. Tenant's failure to pay any such late charge within three (3) days after Landlord's written
demand therefor shall constitute an Event of Default hereunder. In addition to the payments set forth in the preceding two sentences,
Tenant shall pay Landlord interest at the rate of eighteen percent (18%) per annum from the date any payment is due until the date
such payment is actually received by Landlord.

 

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17.         Condemnation.
If title to all or any portion of the Premises is taken by a public or quasi-public authority under any statute or by right of
eminent domain of any governmental body, whether such loss or damage results from condemnation of part or all of the Premises,
Tenant shall not be entitled to participate or receive any part of the damages or award except where the same shall provide for
Tenant's moving or other reimbursable expenses, the portion thereof allocated to the taking of Tenant's trade fixtures, equipment
and personal property or to a loss of business by Tenant. Should any power of eminent domain be exercised after Tenant is in possession,
such exercise shall not void or impair this Lease unless the amount of the Premises so taken substantially and materially impairs
the usefulness of the Premises for the purposes for which they are leased in which case, either party may cancel this Lease by
notice to the other within sixty (60) days after such possession. Should only a portion of the Premises be taken and the Premises
continue to be reasonably suitable for Tenant's use, the rent shall be reduced from the date of such possession in direct proportion
to the reduction in the square footage of the Premises. Notwithstanding the language of this Paragraph, Tenant shall be allowed
to separately litigate its damages for loss of its business as a result of any condemnation.

 

18.         Tenant's
Waiver of Statutory Rights. In the event of any termination of the Term (or any repossession of the Premises), Tenant so far
as permitted by law, waives (i) any notice of reentry or of the institution of legal proceedings to that end; and (ii) the benefits
of any laws now or hereafter in force exempting property from liability for rent or for debt.

 

19.         Waiver
of Performance. No failure by Landlord or Tenant to insist upon the strict performance of any term or condition hereof or to
exercise any right, power or remedy consequent upon a breach thereof and no submission by Tenant or acceptance by Landlord of full
or partial rent during the continuance of any such breach shall constitute a waiver of any such breach or of any such term. No
waiver of any breach shall affect or alter this Lease (which shall continue in full force and effect), or the respective rights
of Landlord or Tenant with respect to any other then-existing or subsequent breach.

 

20.         Remedies
Cumulative. Each right, power and remedy provided for in this Lease now or hereafter existing at law, in equity or otherwise
shall be cumulative and concurrent and shall be in addition to every other right, power or remedy provided for in this Lease now
or hereafter existing at law, in equity or otherwise; and the exercise or beginning of the exercise of any one or more of the rights,
powers or remedies provided for in this Lease shall not preclude the simultaneous or later exercise of any or all such other rights,
powers or remedies.

 

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21.         Conveyance
by Landlord. In the event Landlord or any successor Landlord shall convey or otherwise dispose of the Premises, it shall thereupon
be released from all liabilities and obligations imposed upon Landlord under this Lease (except those accruing prior to such conveyance
or other disposition) and such liabilities and obligations shall be binding solely on the then owner of the Premises.

 

22.         No
Personal Liability to Landlord. Tenant shall look solely to Landlord's interest in the Premises for the satisfaction of any
judgment or decree requiring the payment of money by Landlord based upon any default under this Lease, and no other property or
assets of Landlord, or any partner or member of, or shareholder in, Landlord, shall be subject to levy, execution or other enforcement
procedures for satisfaction of any such judgment or decree.

 

23.         Attorneys'
Fees. In the event Landlord retains an attorney to enforce its rights under this Lease or to bring suit for possession of the
Premises, for the recovery of any sum due hereunder, or for any other relief against Tenant, declaratory or otherwise, arising
out of a breach of any term of this Lease, or in the event Tenant should bring any action for any relief against Landlord, declaratory
or otherwise, arising out of this Lease, the prevailing party shall be entitled to receive from the other party reasonable attorneys'
fees and reasonable costs and expenses, which shall be deemed to have accrued due to the commencement of such action and shall
be enforceable whether or not such action is prosecuted to judgment.

 

24.         Provisions
Subject to Applicable Law. All rights, powers and remedies provided herein shall be exercised only to the extent that the exercise
thereof shall not violate any applicable law and are intended to be limited to the extent necessary so that they shall not render
this Lease invalid or unenforceable under any applicable law. If any term of this Lease shall be held to be invalid, illegal or
unenforceable, the validity of the other terms of this Lease shall in no way be affected thereby.

 

25.         Right
to Cure Tenant's Defaults. In the event Tenant shall breach any term, covenant or provision of this Lease, Landlord may at
any time, without notice, cure such breach for the account and at the expense of Tenant. If Landlord at any time, by reason of
such breach, is compelled to pay or elects to pay any sum of money or to do any act that will require the payment of any sum of
money, or is compelled to incur any expense, including reasonable attorneys' fees, incurred in instituting, prosecuting or defending
any actions or proceedings to enforce Landlord's rights under this Lease or otherwise, the sum or sums so paid by Landlord, with
all interest, costs and damages, shall be deemed to be Additional Charges and shall be paid by Tenant to Landlord on the first
day of the month following the incurring of such expenses of the payment of such sums and shall include interest at the rate of
eighteen percent (18%) per annum from the date Landlord makes a payment until Tenant pays such Additional Charges in full.

 

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26.         Notices.
Any notice to be given by Landlord or Tenant shall be given exclusively in writing and delivered in person or by overnight mail
service to Landlord or Tenant, forwarded by certified or registered mail, postage prepaid, or sent via facsimile transmission,
to the address indicated in the Fundamental Lease Provisions, unless the party giving any such notice has been notified, in writing,
of a change of address. Any such notice shall be deemed effective (a) upon receipt or refusal to accept delivery, if personally
delivered; (b) on the next business day following delivery to the overnight courier; (c) in the case of certified mailing, on the
date of actual delivery as shown by the addressee's receipt or upon the expiration of three (3) business days following the date
of mailing, whichever occurs first; or (d) in the case of facsimile transmission, upon receipt (a written confirmation of successful
transmission from the transmitting facsimile machine being prima facie evidence of such receipt).

 

27.         Signs.
Tenant shall not place, alter, exhibit, inscribe, paint or affix any sign, awning, canopy, advertisement, notice or other lettering
on any part of the outside of the Premises, or of the building of which the Premises is a part, or inside the Premises if visible
from the outside, without first obtaining Landlord's written approval thereof, which shall not be unreasonably withheld, and if
so approved, Tenant shall maintain the same in good condition and repair. All signs shall comply with applicable ordinances or
other governmental restrictions and with all applicable rules and regulations then in force or as may be put in force and effect
from time to time by any governmental authority or by Landlord.

 

28.         Landlord's
Inspections.

 

28.1        Inspection.
Landlord reserves the right to, at all reasonable times, by itself or by its duly authorized agents, employees and contractors,
and without notice to go upon and inspect the Premises and every part thereof, to enforce or carry out the provisions of this Lease,
to make, at its option, repairs, installations, alterations, improvements and additions to the Premises or the building of which
the Premises are a part, to perform any defaulted obligation of Tenant or for any other proper purposes. Landlord also reserves
the right to install or place upon or affix to the roof and exterior walls of the Premises: equipment, signs, displays, antennae
and any other object or structure of any kind, provided the same shall not interfere with Tenant's occupancy or materially impair
the structural integrity of the building of which the Premises are a part.

 

28.2        Presenting
for Sale or Lease. Landlord hereby reserves the right during usual business hours to enter the Premises and to show the same
for purposes of sale, lease or mortgage, and during the last six (6) months of the term of this Lease, or the extension thereof,
to exhibit the same to any prospective tenant, and to display appropriate signage for such sale or lease. Prospective purchasers
or tenants authorized by Landlord may inspect the Premises during reasonable hours at any time.

 

 

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29.         Estoppel
Certificate. Tenant will execute, acknowledge and deliver to Landlord, within seven (7) days following a written request therefor,
a certificate certifying (a) that this Lease is unmodified and in full force (or, if there have been modifications, that the Lease
is in full force and effect, as modified, and stating the modifications); (b) the dates, if any, to which rent, Additional Charges
and other sums payable hereunder have been paid; (c) that no notice has been received by Tenant of any default which has not been
cured, except as to defaults specified in such certificate; and (d) this Lease is and shall be subordinate to any existing or future
deed of trust, mortgage or security agreement placed upon the Premises or the Project by the Landlord or owner of the Property.
Any claim of Tenant in contradiction of any of the foregoing matters must be set forth with specificity in the certificate. Any
such certificate may be relied upon by any prospective purchaser or encumbrancer of the Premises or any part thereof. Tenant's
failure to deliver such certificate within the time permitted hereby shall be conclusive upon Tenant that this Lease is in full
force and effect, except to the extent any modification has been represented by Landlord, and there are no uncured defaults in
Landlord's performance, and that not more than one month's rent has been paid in advance. In addition, at Landlord's option,
after notice to Tenant and expiration of applicable grace period under this Lease, such failure of Tenant to deliver such certificate
shall constitute an Event of Default. Tenant acknowledges and agrees that the promise to issue such statements pursuant hereto
are a material consideration inducing Landlord to enter into this Lease and that the breach of such promise shall be deemed a material
breach of this Lease.

 

30.         Waiver
of Trial By Jury. TENANT HEREBY WAIVES ALL RIGHTS TO TRIAL BY JURY IN ANY CLAIM, ACTION, PROCEEDING OR COUNTERCLAIM BY EITHER
LANDLORD OR TENANT AGAINST EACH OTHER ON ANY MATTERS ARISING OUT OF OR IN ANY WAY CONNECTED WITH THIS LEASE, THE RELATIONSHIP OF
LANDLORD AND TENANT, AND/OR TENANT'S USE OR OCCUPANCY OF THE LEASED PREMISES. TENANT AGREES THAT EXCLUSIVE JURISDICTION FOR ALL
LEGAL ACTIONS SHALL BE COCONINO COUNTY SUPERIOR COURT.

 

31.         Recording.
Neither this Lease nor a memorandum thereof, may be recorded, or otherwise made public, by any means, without the express written
consent of Landlord. Any such recording or publication without such consent, shall, at Landlord's option, cause this Lease and
all rights of Tenant hereunder, to be immediately forfeited and of no further force and effect, provided, however, that Landlord
shall have the right to such action against Tenant, for damages resulting from such recording, as Landlord shall be entitled to
by law.

 

32.         Subordination.
This Lease is hereby declared to be subject and subordinate to the lien of any present or future encumbrance or encumbrances upon
the Premises or the Project, irrespective of the time of execution or the time of recording of any such encumbrance or encumbrances.
Landlord shall use its good faith efforts to obtain for Tenant an attornment and non-disturbance agreement from any lender which
has a lien on the Premises. This subordination is subject to the right of Tenant upon a foreclosure or other action taken under
any mortgage by the holders thereof to have this Lease and the rights of Tenant hereunder not be disturbed but to continue in full
force and effect so long as Tenant shall not be in default hereunder. The word "encumbrance" as used herein includes
mortgages, deeds of trust or other similar instruments, and modifications, extensions, renewals and replacements thereof, and any
and all advances thereunder.

 

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33.         Miscellaneous.

 

33.1        Definition
of Tenant. The Term "Tenant" shall include legal representatives, successors and permitted assigns. All covenants
herein shall be made binding upon Tenant and construed to be equally applicable to and binding upon its agents, employees and others
claiming the right to be in the Premises or in the building or in the building through, under or above Tenant.

 

33.2        Tenant.
If more than one individual, firm, or corporation shall join as Tenant, singular context shall be construed to be plural wherever
necessary and the covenants of Tenant shall be the joint and several obligations of each party signing as Tenant and when the parties
signing as Tenant are partners, it shall be the obligation of the firm and of the individual members thereof.

 

33.3        Gender
and Number. Whenever from the context it appears appropriate, each item stated in the singular shall include the plural and
vice versa and the masculine, feminine, or neuter form shall included the masculine, feminine and neuter forms.

 

33.4        Modifications
and Waivers. No change, modification, or waiver of any provision of this Lease shall be valid or binding unless it is in writing
dated after the date hereof and signed by the parties intended to be bound. No waiver of any breach, term, or condition of this
Lease by either party shall constitute a subsequent waiver of the same or any other breach, term, or condition.

 

33.5        Implied
Warranties. OTHER THAN AS SET FORTH IN THIS LEASE, TENANT AND LANDLORD EXPRESSLY AGREE THAT THERE ARE AND SHALL BE NO IMPLIED
WARRANTIES OF MERCHANTABILITY, HABITABILITY, FITNESS FOR A PARTICULAR PURPOSE OR ANY OTHER KIND ARISING OUT OF THIS LEASE, AND
THERE ARE NO WARRANTIES WHICH EXTEND BEYOND THOSE EXPRESSLY SET FORTH IN THIS LEASE.

 

33.6        Binding
Effect. This Lease shall be binding upon and shall inure to the benefit of the parties and their respective heirs, personal
representatives, successors and assigns. This provision shall not be deemed to grant Tenant any right to assign this Lease or sublet
the Premises or any part thereof other than as provided in this Lease.

 

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33.7         Severability.
To the fullest extent possible each provision of this agreement shall be interpreted in such fashion as to be effective and valid
under applicable law. If any provision of this Lease is declared void or unenforceable with respect to particular circumstances,
such provision shall remain in full force and effect in all other circumstances. If any provision of this Lease is declared
void or unenforceable, such provision shall be deemed severed from this Lease, which shall otherwise remain in full force and effect.

 

33.8         Governing
Law and Jurisdiction. Except where preempted by the laws of the United States or the rules or regulations of any agency or
instrumentality thereof, this Lease is to be interpreted, construed and governed by the laws of the State of Arizona. The parties
irrevocably and unconditionally submit to the exclusive jurisdiction of the Superior Court of the State of Arizona for the County
of Coconino in connection with any legal action or proceeding arising out of or relating to this Lease and the parties waive any
objection relating to the basis for personal or in rem jurisdiction or to venue which it may now or hereafter have in any such
suit, action or proceeding.

 

33.9         Entire
Agreement. This instrument constitutes the sole and only agreement between Landlord and Tenant respecting the Premises, the
leasing of the Premises to the Tenant, or the Lease term herein specified, and correctly sets forth the obligations of the Landlord
and Tenant to each other as of its date. Any agreements or representations by the Landlord to the Tenant not expressly set forth
in this instrument are void and unenforceable. All prior agreements and understanding of the parties with respect to such subject
matter are hereby superseded. No representations, promises, agreements, or understandings contained in this Lease regarding the
subject matter hereof shall be of any force or effect unless in writing, executed by the party to be bound, and dated on or subsequent
to the date hereof. Captions and headings are for convenience only and shall not alter any provision or be used in the interpretation
of this Lease.

 

33.10       Time
is of the Essence. Time is of the essence of this Lease and each and every provision hereof. Any extension of time granted
for the performance of any duty under this Lease shall not be considered an extension of time for the performance of any other
duty under this Lease.

 

33.11       Brokers.
Landlord and Tenant represent and warrant that neither has entered into any agreement with, nor otherwise had any dealings with,
any broker or agent in connection or execution of this Lease which could form the basis of any claim by any such broker or agent
for a brokerage fee or commission, finder's fee, or any other compensation of any kind or nature in connection with this Leasehold.

 

    	 

    	 

     

 

	LANDLORD:	 	TENANT:
	 	 	 
	SINAGUA PLAZA II, LLC., An Arizona	 	L’AUBERGE ORCHARDS, LLC, an
	limited liability company	 	Arizona limited liability company
	 	 	 
	By:	JOHNAL CORPORATION, an Arizona corporation	 	 	 
	 	 	 	 	 
	Its:	Manager	 	By:	/s/ Al Spector
	 	 	 	 	Al Spector
	 	By:	/s/ John Carleton	 	Its:	Manager
	 	 	John Carleton	 	 	 
	 	Its:	President	 	 	 
	 	 	 	 	 	 
	 	By:	/s/ Al Spector	 	 	 
	 	 	Al Spector	 	 	 
	 	Its:	Vice President	 	 	 

  

    	 

    	 

     

Exhibit Giv

 

SECOND AMENDMENT TO LEASE

 

(Sinagua Plaza II Parking Lease)

 

THIS SECOND AMENDMENT TO LEASE (“Amendment”)
executed and effective as of May 14, 2013 by and between Sinagua Plaza II, L.L.C., an Arizona limited liability company (“Landlord”)
and L’Auberge Orchards, LLC, an Arizona limited liability company (“Tenant”).

 

WHEREAS, Landlord and Tenantentered into
that certain Lease dated January 1, 2012 (“Original Lease”), as amended by that certain Amendment to Lease dated May
1, 2012 (“First Amendment”)(the Original Lease and First Amendment are hereby collectively referred to as the “Lease”),
whereby Landlord leased to Tenant and Tenant leased from Landlord 17 parking spaces located on the propertycommonly known as 320
N. Highway 89A, Sedona, Arizona, as described in the Original Lease and legally described on Exhibit A attached hereto;

 

WHEREAS, Landlord and Tenant desire to further
amend the terms of the Lease pursuant to the provisions of this Amendment.

 

NOW, THEREFORE, in consideration of the
above recitals, the mutual promises contained herein, and other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, Landlord and Tenant agree as follows:

 

1. Lease Term.

 

(a) The Lease Term is hereby extended to
the date which is the tenth (10th) anniversary of the date hereof.

 

(b) Section 5 of the Original Lease is hereby
deleted in its entirety and replaced with the following:

 

“Landlord grants to Tenant the right to extend the Lease
Term for one (1) additional period of ten (10) years. Such extension shall be upon the same terms and conditions as the Original
Lease, as modified by this Amendment.

 

(c) Notwithstanding anything herein or in
the Original Lease to the contrary, Tenant shall have the right to terminate this Lease at any time upon thirty (30) days prior
written notice to Landlord.

 

2. Rent. The total monthly Minimum Rent payable in accordance
with the Lease shall be $2,000 for the period commencing on the date hereof through the first (1st) anniversary of the date hereof.
Thereafter, the total monthly Minimum Rent payable under this Lease shall be increased on an annual basis an amount equal to three
percent (3%) of the Minimum Rent payable in the immediately preceding year.

 

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3. Common Area Expenses.
Following the first (1st) year of the term of this Lease, Tenant’s proportionate share of common area expenses
shall be adjusted for each year thereafter as follows: The base for computing the adjustment is the Consumers’ Price Index
for All Urban Consumers, United States Cities Average published by the United States Department of Labor, Bureau of Labor Statistics
(the “Index”), which is in effect on the date of the commencement of the first day of the previous Lease year (“Beginning
Index”). For example, the adjustment for year two would be based on the Index for the first day of Lease year one. The Index
published most immediately preceding the Adjustment Date in question (“Extension Index”) is to be used in determining
the amount of the adjustment. If the Extension Index has increased over the Beginning Index, the common area expenses for the following
year shall be set by multiplying the base monthly rent for the previous year, e.g., for the 12th Lease month, by a fraction, the
numerator of which is the Extension Index and the denominator of which is the Beginning Index. However, the adjustment to common
area expenses shall be no greater than three percent (3%) compounded per annum of the prior year’s common area expenses.

 

4. Certificate of Insurance. Section 8 of the Original
Lease is hereby deleted in its entirety and replaced with the following:

 

“Tenant shall provide annually to
Landlord a Certificate of Insurance listing Landlord as an additional insured.”

 

5. Premises Utilities. Landlord shall, at Landlord’s
expense, cause to the Premises to be properly lighted at all times in which the Project is open to the public for business.

 

6. Repair. Section 11 of the Lease is hereby deleted
in its entirety.

 

7. Damage or Destruction. Article 12 of the Lease is
hereby deleted in its entirety and replaced with the following:

 

“If all or any portion of the Premises or the Project
is damaged by fire or other casualty insurable under a standard fire insurance policy with a standard extended coverage endorsement,
Minimum Monthly Rental and Additional Rent shall abate and Landlord shall promptly repair as is necessary to replace the Premises
and when placed in such condition the Premises shall be deemed restored and rendered tenantable, such repair or rebuilding to be
commenced within a reasonable time after the occurrence. If such damage occurs in the last two years of the Lease Term or during
any Option Term, Tenant or Landlord shall have the option of terminating the Lease upon written notice to the other party. If Landlord’s
Lender requires that the insurance proceeds be used to retire the debt, Landlord shall have no obligation to rebuild, and this
Lease shall terminate upon notice to Tenant. Promptly following Landlord’s repair or rebuilding, Tenant, at Tenant’s
sole expense, shall repair or replace its stock in trade, fixtures, furniture, furnishings, floor coverings and equipment, and
if Tenant has closed, Tenant shall promptly reopen for business.”

 

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15. Waiver of Subrogation. Except with respect to Worker’s
Compensation, to which no waiver of subrogation will apply, each party hereby waives any and every right or cause of action for
the events which occur or accrue during the Lease Term for any and all loss of, or damage to, any of its property (whether or not
such loss or damage is caused by the fault or negligence of the other party or anyone for whom said other party may be responsible),
which loss or damage is covered by valid and collectible fire, extended coverage, “All Risk” or similar policies covering
real property, personal property or business interruption insurance policies, to the extent that such loss or damage is recovered
under said insurance policies. Said waivers shall be in addition to, and not in limitation or derogation of, any other waiver or
release contained in this Lease with respect to any loss or damage to property of the parties hereto. Written notice of the terms
of such mutual waivers shall be given to each insurance carrier and the insurance policies shall be properly endorsed, if necessary,
to prevent the invalidation of coverage by reason of said waivers.

 

16. Indemnification.

 

a. Section 14.1 of the Original Lease is
hereby deleted in its entirety and replaced with the following:

 

“By Tenant.
Excepting any responsibility allocated to Landlord by reason of its gross negligence (excluding from this exception, however, any
responsibility allocated to Landlord by reason of its failure to enforce the terms of this Lease), Tenant shall indemnify, defend
and hold Landlord harmless for, from and against all liabilities, obligations, claims, suits, damages, penalties, causes of action,
costs and expenses (including without limitation, reasonable attorneys’ fees and expenses) imposed upon or asserted against
Landlord by reason of the gross negligence or willful misconduct of Tenant, its agents, employees, contractors, suppliers, licensees,
invitees and guests and/or the occurrence of any of thefollowing during the Term: (i) any use, non-use or condition of the Premises
or any part thereof; (ii) any accident, injury to or death of persons (including workmen) or loss of or damage to property occurring
on or about the Premises or any part thereof; (iii) any failure on the part of Tenant to perform or comply with any of the provisions
of this Lease; (iv) performance of any labor or services or the furnishings of any materials or other property in respect of the
Premises or any part thereof (excluding any such matters performed or furnished by or at the request of Landlord and unrelated
to a default of Tenant under this Lease); or (v) any failure on the part of Tenant to clean up and/or dispose of any Hazardous
Materials, as described in Section 13.2 above, in accordance with the requirements of this Lease and applicable law. In the event
Landlord should be made a defendant in any action, suit or proceeding brought by reason of any such occurrence, Tenant shall, at
its own expense, resist and defend such action, suit or proceeding or cause the same to be resisted and defended by legal counsel
designated by Tenant but approved by Landlord. If any such action, suit or proceeding should result in a final judgment against
Landlord, Tenant shall promptly satisfy and discharge such judgment or shall cause such judgment to be promptly satisfied and discharged.
The obligations of Tenant under this Section 18 arising by reason of any such occurrence taking place while this Lease is in effect
shall survive the termination of this Lease.”

 

b. Section 14.2 of the Original Lease is
hereby deleted in its entirety and replaced with the following:

 

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“By Landlord.Landlord shall
save, hold harmless and indemnify Tenant for, from and against all liabilities, obligations, claims, suits, damages, penalties,
causes of action, costs and expenses (including, without limitation, reasonable attorneys’ fees and expenses) imposed upon
or asserted against Tenant by reason of the gross negligence or willful misconduct of Landlord or its agents, contractors, servants
or employees and/or the occurrence of any of the following during the Term: (i) any use or condition of the Premises or any part
thereof (which Landlord is required to maintain); (ii) any accident, injury to or death of persons (including workmen) or loss
of or damage to property occurring on or about the Common Areas; (iii) any failure on the part of Landlord to perform or comply
with any of the provisions of this Lease; and (iv) performance of any labor or services or the furnishings of any materials or
other property in respect of the Premises or any part thereof (excluding any such matters performed or furnished by or at the request
of Tenant). In the event Tenant should be made a defendant in any action, suit or proceeding brought by reason of any such occurrence,
Landlord shall, at its own expense, resist and defend such action, suit or proceeding or cause the same to be resisted and defended
by legal counsel designated by Landlord but approved by Tenant. If any such action, suit or proceeding should result in a final
judgment against Tenant, Landlord shall promptly satisfy and discharge such judgment or shall cause such judgment to be promptly
satisfied and discharged. The obligations of Landlord under this Section 18 arising by reason of any such occurrence taking place
while this Lease is in effect shall survive the termination of this Lease.”

 

17. Assignment and Subletting. Article 15 of the Original
Lease is hereby deleted in its entirety and replaced with the following:

 

“Tenant shall have the right to transfer or assign this
Lease or sublet all or any portion of the Premises without Landlord’s consent, but with prior written notice to Landlord;
provided, the assignee or subtenant expressly assumes all obligations of Tenant under the Lease. Notwithstanding the foregoing,
Landlord shall not have the right to consent to any assignment or subletting of this Lease or any portion of the Premises to an
entity which controls, is controlled by or is under common control with Tenant, and Landlord shall not withhold its consent to
any proposed assignee or subtenant with financial wherewithal equal to or superior to that of Tenant and who is actively engaged
in the hospitality industry.”

 

19. Estoppels. The period in which Tenant must respond
to a request for an estoppel pursuant to Section 29 of the Lease is hereby modified from seven (7) days to ten (10) business days.
In the event Tenant fails to respond within such ten (10) business day period, Tenant shall be deemed in default under Section
16.1 of the Lease, but in no event will Tenant’s failure to respond be deemed an acknowledgement of any proported facts contained
in any form estoppel .

 

20. Conflicting Terms. In the event of any conflict,
inconsistency or ambiguity between the terms of this Amendment and the Lease, the terms of this Amendment shall control.

 

21. Defined Terms. Capitalized terms not otherwise
defined herein shall have the meaning ascribed to them in the Lease.

 

22. Multiple Counterparts. This Amendment may be executed
in multiple counterparts, each of which shall be deemed an original and together shall constitute one and the same instrument.

 

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23. Ratification. Except as expressly modified by this
Amendment, the Lease remains unmodified and in full force and effect.

 

[THE REMAINDER OF THIS PAGE IS INTENTIONALLY
LEFT BLANK]

 

[SIGNATURE PAGE FOLLOWS]

 

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IN WITNESS WHEREOF, the parties have executed this Amendment
as of the day and year above first written.

 

“Landlord”

 

Sinagua Plaza II, L.L.C., an Arizona limited liability company

 

	By:	/s/ Al Spector	 
	 	 	 
	Name:	Al Spector	 
	 	 	 
	Title:	Manager	 

 

“Tenant”

 

L’Auberge Orchards, LLC, an Arizona limited liability
company

 

	By:	/s/ Al Spector	 
	 	 	 
	Name:	Al Spector	 
	 	 	 
	Title:	Manager	 

 

 

 

 

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AMENDMENT TO LEASE

 

This Amendment to Lease (Amendment) is made
this 1st day of May, 2012 by and between Sinagua Plaza II, LLC as Landlord (“Landlord”) and L’Auberge
Orchards LLC as Tenant (“Tenant”) and amends the Lease for Parking Spaces between Landlord and Tenant dated January
1, 2012.

 

RECITALS

 

1.         Landlord
and Tenant entered into a Lease for Parking Spaces in the Sinagua Plaza Parking Structure property of 17 parking spaces.

 

2.         Tenant
did not have sufficient cash flow during the months of January, February, March and April 2012 to pay Landlord the Rent that was
due.

 

3.         Tenant
has requested and Landlord has agreed to allow Tenant to defer payment of Rent during these months until the months of May, June,
July and August 2012 under the terms and conditions set forth in this Amendment.

 

It is agreed as follows:

 

1.         Paragraph
4A, Minimum Rent, is amended as follows:

 

A.         Tenant
shall pay to Landlord the Minimum Rent in advance, on the first day of each calendar month, except that in 2012 for the months
of January, February, March and April, Rent shall be paid as follows: (I) January Rent will be paid in May, February Rent will
be paid in June, March Rent will be paid in July and April Rent will be paid in August. This accommodation of deferred Rent is
extended to Tenant by Landlord provided that the revised Rent schedule stated in this Paragraph is adhered to in 2012. Should Tenant
not make Rent payments pursuant to this deferred Rent schedule, Tenant will be in default under this Lease.

 

2.         Full
Force and Effect. Except as modified by this Amendment, the Lease and each of its terms and conditions remains in full force
and effect.

 

 

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	LANDLORD:	 	TENANT:
	 	 	 
	SINAGUA PLAZA II, LLC, an Arizona	 	L’AUBERGE ORCHARDS, LLC, an
	limited liability company	 	Arizona limited liability company
	 	 	 
	By:	JOHNAL CORPORATION, an	 	 	 
	 	Arizona corporation	 	 	 
	 	 	 	 	 
	Its:	Manager	 	By:	/s/ Al Spector
	 	 	 	 	Al Spector
	 	By:	/s/ John Carleton	 	Its:	Manager
	 	 	John Carleton	 	 	 
	 	Its:	President	 	 	 
	 	 	 	 	 	 
	 	By:	/s/ Al Spector	 	 	 
	 	 	Al Spector	 	 	 
	 	Its:	Vice President	 	 	 

  

    	

    	 

     

LEASE FOR PARKING SPACES

 

This LEASE FOR PARKING SPACES (“Lease”),
is made this 1st day of January, 2012, by and between Sinagua Plaza II, LLC, an Arizona limited liability company, having
offices at 6900 E. Camelback Road, Suite 915, Scottsdale, AZ 85251 (“Landlord”), and L’Auberge Orchards LLC,
an Arizona limited liability company, having offices at 301 L’Auberge Lane, Sedona, AZ 86336 (“Tenant”).

 

RECITALS

 

	 	1.	Landlord owns the Sinagua Plaza Shopping Center and Parking Structure located at 320 N. Highway 89A in Sedona, Arizona. Sinagua Plaza is a retail shopping center together with the adjacent Parking Structure.

 

	 	2.	Tenant has enjoyed the use of 17 parking spaces for parking vehicles of employees and the placement of its waste containers since June, 2008. The parking spaces are designated on the attached Exhibit “A”.

 

	 	3.	Tenant desires to continue to use the 17 parking spaces for its waste container management and parking needs. Landlord agrees to permit Tenant to use the 17 parking spaces under the terms and conditions set forth below.

 

It is agreed as follows:

 

	 	1.	Premises. Landlord and Tenant agree that Tenant has used the 17 parking spaces, and Tenant desires to continue to use these spaces for its parking and waste container management needs.

 

	 	2.	Commencement Date, The Commencement Date of this Lease is January 1, 2012.

 

	 	3.	Termination Date. The Termination Date of this Lease is December 31, 2017.

 

	 	4.	Minimum Rent. Commencing January 1, 2012, Minimum Rent shall be Two Thousand Dollars ($2,000.00) per month. Rent is due and payable in advance on or before the first day of each month and subject to adjustment as set forth below.

 

A.         Tenant
shall pay to Landlord the Minimum Rent in advance, on the first day of each calendar month. The Minimum Rent hereinafter provided
for shall be paid in lawful money of the United States to Landlord at its address or at such other place as Landlord may from time
to time designate in writing.

 

 

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B.         The
Minimum Rent shall be subject to adjustment as described herein commencing in the second year of the Lease Term and for each year
thereafter as follows except for the first year of any Option Term, when rent shall be adjusted to Market Rent.

 

The base for computing
the adjustment is the Consumers’ Price Index for All Urban Consumers, United States Cities Average published by the United
States Department of Labor, Bureau of Labor Statistics (the “Index”), which is in effect on the date of the commencement
of the first day of the previous Lease year (“Beginning Index”). For example, the adjustment for year two would be
based on the Index for the first day of Lease year one. The Index published most immediately preceding the Adjustment Date in question
(“Extension Index”) is to be used in determining the amount of the adjustment. If the Extension Index has increased
over the Beginning Index, the base monthly rent for the following year shall be set by multiplying the base monthly rent for the
previous year, e.g., for the 12th Lease month, by a fraction, the numerator of which is the Extension Index and the
denominator of which is the Beginning Index. However, the adjustment to the rent shall be no less than three percent (3%) compounded
per annum of the base monthly rent provided in this Lease. As an example, if year one monthly rent is $1,000.00 and the three percent
(3%) is applicable each year, then monthly rent for years two through five would be: year two - $1,030.00; year three - $1,060.90;
year four - $1,092.73; and year five $1,125.51.

 

If the Index is changed
so that the base year differs from that in effect when the Term commences, the Index shall be converted in accordance with the
conversion factor published by the United States Department of Labor, Bureau of Labor Statistics. If the Index is discontinued
or revised during the Term, such other government index or computation with which it is replaced shall be used in order to obtain
substantially the same result as would be obtained if the Index had not been discontinued or revised.

 

C.         Monthly
rent for the first month shall be paid on the date the Term commences. Monthly rent for any partial month shall be prorated at
the rate of one-thirtieth (1/30) of the monthly rent per day.

 

D.         All
rental amounts are “net” rent to Landlord.

 

5.         Options
to Renew. Provided that (i) this Lease is in full force and effect; (ii) Tenant is in possession of the Premises; and (iii)
Tenant has not been and is not in default under this Lease, Tenant shall have the right and option to further extend the Term of
this Lease for two (2) additional successive renewal periods of five (5) years each. The tenancy resulting from the exercise of
this option shall be upon the same terms and conditions as set forth in this Lease. The Minimum Rent for the first year of each
renewal period shall be adjusted upward or downward by Landlord in the first year of each renewal period based upon the prevailing
rates (Market Rent) for rents in Sinagua Plaza. Thereafter, for years 2, 3, 4 and 5 of each renewal period Rent shall increase
by three percent (3%) per year over the previous years Rent. The option for the renewal periods may be exercised only upon written
notice thereof to Landlord at least six (6) months prior to the Termination Date of this Lease. Within sixty (60) days after exercise
of any option for a renewal period, Landlord shall, in writing, notify Tenant of the Rent during the first year of the renewal
period. If Tenant fails to exercise any option during the period when the option is available, or if this Lease is in default or
is no longer in full force and effect for any reason, the applicable option shall be void.

 

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The first renewal period
shall commence on the date following the originally fixed Termination Date. The second renewal period shall commence on the date
following the termination date of the first renewal period.

 

6.         Size
and Configuration. Landlord and Tenant agree that the location of the 17 parking spaces may be changed should such a change
be required by municipal or county regulations.

 

7.         Tenant’s
Property. Tenant agrees that all property owned by it in, on, or about the Premises shall be at the sole risk and hazard of
the Tenant. Landlord shall not be liable or responsible for any loss or damage to Tenant, or anyone claiming under or through Tenant,
or otherwise, whether caused by or resulting from a peril required to be insured hereunder, or from water, gas leakage, plumbing,
electricity or electrical apparatus, pipe or apparatus of any kind, the elements or other similar or dissimilar causes, and whether
or not originating in the Premises or elsewhere, irrespective of whether or not Landlord may be deemed to have been negligent with
respect thereto, and provided such damage or loss is not the result of any intentional and wrongful act of Landlord. Tenant shall
require all policies of risk insurance carried by it on its property in the Premises to contain or be endorsed with the provision
in and by which the insurer designated therein shall waive its right of subrogation against Landlord.

 

8.         Certificate
of Insurance. Tenant shall provide annually to Landlord a Certificate of Insurance listing Landlord as an additional named
insured and Barrett Realty LLC as an additional named insured under the Tenant’s policy of insurance.

 

9.         Insurance
Companies. The policies affording the insurance required by this Lease shall be with companies (rated A-[minus] VII or better,
A. M. Best’s Key Rating Guide) authorized to do business in the State of Arizona and shall be in a form reasonably satisfactory
to Landlord, shall provide replacement cost coverage, shall name Landlord as an additional insured, and shall provide for payment
of loss thereunder to Landlord and Tenant as their interests may appear. The policies or certificates evidencing such insurance
shall be delivered to Landlord on or before the Commencement Date and renewals thereof shall be delivered to Landlord at least
thirty (30) days prior to the expiration dates of the respective policies. Alternatively, the insurance required by this Section
15 may be provided under a blanket policy to the Tenant’s existing insurance policy.

 

 

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10.         Failure
to Procure Insurance. In the event Tenant shall fail to procure insurance required under this Lease or fail to maintain the
same in force continuously during the Term, or any extension thereof, Landlord shall be entitled to procure such insurance and
Tenant shall, upon demand, immediately reimburse Landlord for such premium expense or Landlord may declare Tenant in default under
this Lease.

 

11.         Repair.
In the event of loss under any such policy or policies, Tenant shall promptly proceed with the repair and restoration of the damaged
or destroyed improvements. The insurance proceeds, if less than $20,000.00, shall be paid to Tenant for application to such repair,
restoration or remediation, so long as (a) Tenant is not then in default under this Lease, and (b) Tenant expressly covenants in
writing with Landlord to expend such funds for the repair, restoration or remediation of the Premises and the improvements therein,
and to furnish Landlord with documentation evidencing such expenditure of funds for work and improvements incorporated in the Premises
within thirty (30) days following completion of such repair, restoration or remediation. If the insurance proceeds exceed $20,000.00,
the same shall be paid to and held in trust by the Landlord. All insurance proceeds described in this Paragraph 11 shall be paid
upon architects’ certificates and contractors’, subcontractors’ and materialmen’s waivers of lien for the
cost and expense of repair, restoration or remediation of the damage. If at any time such insurance proceeds shall be insufficient
to pay fully the cost of completion of such repair, restoration or remediation, Tenant shall upon demand of Landlord pay a sufficient
portion of such cost so that it shall appear to the reasonable satisfaction of Landlord that the amount of insurance money in the
hands of Tenant or Landlord, as applicable, shall at all times be sufficient to pay for the completion of the repairs, restoration
or remediation free and clear of all liens. Upon the completion of the repairs, restoration or remediation, free and clear of all
liens, any surplus of insurance monies shall be paid to Tenant, provided that Tenant is not then in default hereunder. In the event
that this Lease shall have been terminated for any default of Tenant under any of the terms and provisions contained in this Lease,
all proceeds of insurance in the hands of Tenant or Landlord and all claims against insurers shall be and become the absolute property
of Landlord.

 

12.         Damage
or Destruction. 

 

12.1 Tenant Obligations.
In the event of damage to or destruction of any of the improvements on the Premises by fire or other casualty, Tenant shall give
Landlord immediate notice thereof and shall, at Tenant’s own expense and whether or not the insurance proceeds are sufficient
for the purpose, promptly commence and thereafter diligently pursue completion of the repair, restoration or rebuilding of the
same so that upon completion of such repairs, restoration or rebuilding, the value and rental value of the improvements shall be
substantially equal to the value and rental value thereof immediately prior to the occurrence of such fire or other casualty. Tenant
hereby expressly waives any statutory right to terminate this Lease in the event of damage or destruction of the Premises or all
or any portion of the buildings or improvements thereon.

 

 

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12.2 Lease Termination.
Notwithstanding anything to the contrary contained herein, if the Premises should be rendered untenantable by fire or other casualty
during the last two (2) years of the Term to the extent of fifty percent (50%) or more of the replacement cost of the Premises,
Tenant shall have the option to terminate this Lease by notice to Landlord within sixty (60) days after the occurrence of such
damage or destruction. Upon termination, this Lease and the Term hereof shall cease and come to an end as of the effective date
of such notice (which shall be not less than thirty (30) nor more than ninety (90) days after the notice and shall be specified
in the notice). Any unearned rent or other charges shall be apportioned as of the effective date and Tenant shall assign to Landlord
all of its rights to the insurance proceeds arising out of damage or destruction to the improvements and shall pay Landlord (when
the information is ascertained) the difference between the value of the property damaged or destroyed, prior to the damage or destruction,
and the amount, if any, of the insurance proceeds.

 

13.         Easements.
Landlord expressly reserves all rights in and with respect to the use of the Premises as provided herein, including (without in
any way limiting the generality of the foregoing) the rights of Landlord to establish Common Areas and grant parking easements
to others and to enter upon the Premises and give easements to others for the purpose of installing, using, maintaining, renewing
and replacing such overhead or underground water, gas, sewer, and other pipe lines, and telephone, electric and power lines, cables
and conduits as Landlord may deem desirable in connection with the development or use of the other property in the Project or any
other property in the neighborhood thereof, whether owned by Landlord or not.

 

14.         Indemnification.

 

14.1. By Tenant.
Excepting any responsibility allocated to Landlord by reason of its negligence (excluding from this exception, however, any responsibility
allocated to Landlord by reason of its failure to enforce the terms of this Lease), Tenant shall indemnify, defend and hold Landlord
harmless for, from and against all liabilities, obligations, claims, suits, damages, penalties, causes of action, costs and expenses
(including without limitation, reasonable attorneys’ fees and expenses) imposed upon or asserted against Landlord by reason
of the acts or omissions of Tenant, its agents, employees, contractors, suppliers, licensees, invitees and guests and/or the occurrence
of any of the following during the Term: (i) any use, non-use or condition of the Premises or any part thereof; (ii) any accident,
injury to or death of persons (including workmen) or loss of or damage to property occurring on or about the Premises or any part
thereof; (iii) any failure on the part of Tenant to perform or comply with any of the provisions of this Lease; (iv) performance
of any labor or services or the furnishings of any materials or other property in respect of the Premises or any part thereof (excluding
any such matters performed or furnished by or at the request of Landlord and unrelated to a default of Tenant under this Lease);
or (v) any failure on the part of Tenant to clean up and/or dispose of any Hazardous Materials, as described in Section 13.2 above,
in accordance with the requirements of this Lease and applicable law. In the event Landlord should be made a defendant in any action,
suit or proceeding brought by reason of any such occurrence, Tenant shall, at its own expense, resist and defend such action, suit
or proceeding or cause the same to be resisted and defended by legal counsel designated by Tenant but approved by Landlord. If
any such action, suit or proceeding should result in a final judgment against Landlord, Tenant shall promptly satisfy and discharge
such judgment or shall cause such judgment to be promptly satisfied and discharged. The obligations of Tenant under this Section
18 arising by reason of any such occurrence taking place while this Lease is in effect shall survive the termination of this Lease.

 

 

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14.2 By Landlord.
Landlord shall save, hold harmless and indemnify Tenant for, from and against all liabilities, obligations, claims, suits, damages,
penalties, causes of action, costs and expenses (including, without limitation, reasonable attorneys’ fees and expenses)
imposed upon or asserted against Tenant by reason of the negligence of Landlord or its agents, contractors, servants or employees.

 

15.         Assignment
and Subletting. Tenant shall not transfer or assign this Lease or any interest in this Lease or sublet the Premises or any
portion thereof without first obtaining the written consent of Landlord, which consent may be given or withheld in Landlord’s
sole discretion; and any attempted transfer, assignment or subletting, including any involuntary transfers or assignments by operation
of law, without such consent shall be void and confer no rights upon any third person, and at the option of Landlord, shall cause
a termination of this Lease, in which event such third person shall occupy the Premises as a tenant at sufferance. The acceptance
of any rent payments by Landlord from any such alleged assignee shall not constitute approval of the assignment or subletting of
this Lease by Landlord. No transfer, assignment or subletting shall relieve Tenant of its liability for the full performance of
all of the provisions, agreements, covenants and conditions of this Lease. A consent by Landlord to one transfer, assignment or
subletting shall not operate as a waiver of this Section as to any future transfer, assignment or subletting, and this Section
15 shall apply to any transferee, assignee or subtenant.

 

16.         Defaults
by Tenant.

 

16.1 Event of Default.
Each of the following occurrences shall be an Event of Default hereunder:

 

A.         If
Tenant fails to pay any Rent, Additional Charges or any sum due hereunder promptly when due and such failure continues for three
(3) days after the date such payment was due.

 

 

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B.         If
Tenant defaults or breaches any of the other (non-monetary) covenants, agreements, conditions or undertakings herein to be kept,
observed and performed by Tenant and such default continues for ten (10) days after notice thereof in writing to Tenant.

 

C.         If
Tenant files any petition under any chapter or section of the Federal Bankruptcy Code or any similar law, state or federal, whether
now or hereafter existing, or shall file an answer admitting insolvency or inability to pay its debts.

 

D.         If
Tenant fails to obtain a stay of any involuntary proceedings under any chapter or section of the Federal Bankruptcy Code within
sixty (60) days after the institution thereof.

 

E.         If
a trustee or receiver is appointed for Tenant or for a major portion of its property or for any portion of the Premises and such
appointment is not vacated , and dismissed within sixty (60) days thereafter and in any event prior to any action adverse to the
interest of Tenant or Landlord having been taken by such trustee or receiver.

 

F.         If
any court takes jurisdiction of a major portion of the property of Tenant or any part of the Premises in any involuntary proceeding
for dissolution, liquidation or winding up of Tenant and such jurisdiction is not relinquished or vacated within sixty (60) days.

 

G.         If
Tenant makes an assignment for the benefit of its creditors.

 

16.2 Re-Enter of
Premises. Upon the occurrence of any such Event(s) of Default and at any time thereafter, Landlord shall have the right, at
its election, to reenter the Premises, or any part thereof, either with or without process of law, and to expel, remove and evict
Tenant and all persons occupying or upon the same under Tenant, using such force as may be lawful and necessary in so doing, and
to possess the Premises and enjoy the same as in their former estate and to take full possession of and control over the Premises
and the buildings and improvements thereon and to have, hold and enjoy the same and to receive all rental income of and from the
same. No reentry by Landlord shall be deemed an acceptance of a surrender of this Lease, nor shall it absolve or discharge Tenant
from any liability under this Lease. Upon such reentry, all rights of Tenant to occupy or possess the Premises shall cease and
terminate.

 

16.3 Lease Termination.
Upon the occurrence of any such Event(s) of Default and at any time thereafter, Landlord shall have the right, at its election,
with or without reentry as provided in Section 16.2, to give written notice to Tenant stating that this Lease shall terminate on
the date specified by such notice, and upon the date specified in such notice this Lease and the Term hereby demised and all rights
of Tenant hereunder shall terminate. Upon such termination, Tenant shall quit and peacefully surrender to Landlord the Premises
and the buildings and improvements then situated thereon.

 

 

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16.4 Relettinq.
At any time and from time to time after such reentry, Landlord may re-let the Premises and the buildings and improvements thereon,
or any part thereof, in the name of Landlord or otherwise, for such term or terms (which may be greater or less than the period
which would otherwise have constituted the balance of the Term of this Lease), and on such conditions (which may include concessions
or free rental) as Landlord, in its reasonable discretion, may determine and may collect and receive the rental therefore. However,
in no event shall Landlord be under any obligation to re-let the Premises and the buildings and improvements thereon, or any part
thereof, and Landlord shall in no way be responsible or liable for any failure to re-let or for any failure to collect any rental
due upon any such re-letting. Even though it may re-let the Premises, Landlord shall have the right thereafter to terminate this
Lease and all of the rights of Tenant in or to the Premises. Nothing contained in the foregoing shall be deemed a waiver or relinquishment
by Tenant of any duty imposed by law on Landlord to mitigate its damages.

 

16.5 Survival of
Liability. Unless Landlord shall have notified Tenant in writing that it has elected to terminate this Lease, no such reentry
or action in lawful detainer or otherwise to obtain possession of the Premises shall relieve Tenant of its liability and obligations
under this Lease; and all such liability and obligations shall survive any such reentry. In the event of any such reentry, whether
or not the Premises and the buildings and improvements thereon, or any part thereof, shall have been re-let, Tenant shall pay to
Landlord the entire rental and all other charges required to be paid by Tenant up to the time of such reentry of this Lease, and
thereafter Tenant, until the end of what would have been the Term of this Lease in the absence of such reentry, shall be liable
to Landlord, and shall pay to Landlord, as damages for Tenant’s default:

 

A.         The
amount of Minimum Base Rent which would be payable under this Lease by Tenant if this Lease were still in effect, less

 

B.         The
net proceeds of any re-letting, after deducting all of Landlord’s expenses in connection with such re-letting, including
without limitation all repossession costs, brokerage commissions, legal expenses, attorneys’ fees, alteration costs and expenses
of preparation for such re-letting.

 

Tenant shall be liable
for and pay such damages to Landlord on a monthly basis on the first day of each month and Landlord shall be entitled to recover
from Tenant monthly as the same shall arise. The excess, if any, in any month or months, of the net proceeds described in subparagraph
(B) above actually received by Landlord over the Minimum Base Rent described in subparagraph (A) above shall belong to Landlord,
provided that such excess shall be credited and applied against Tenant’s future obligations arising under this Section 16.5
as the same become due and payable by Tenant hereunder, and that Tenant shall remain liable for future deficiencies, as applicable.
Notwithstanding any such reentry without termination, Landlord may at any time thereafter, by written notice to Tenant, elect to
terminate this Lease for Tenant’s previous breach.

 

 

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16.6 Cumulative
Remedies. Each right and remedy of Landlord provided for in this Lease shall be cumulative and in addition to every other right
or remedy provided for in this Lease or now or hereafter existing at law or in equity or by statute or otherwise; and the exercise
or beginning of the exercise by Landlord of any one or more of such rights or remedies shall not preclude the simultaneous or later
exercise by Landlord of any or all other rights or remedies provided for in this Lease now or hereafter existing at law or in equity
or by statute or otherwise.

 

16.7 Sublessee Defaults.
Any violation of any covenant or provision of this Lease, whether by act or omission, by any sublessee or any other persons occupying
any portion of the Premises under the rights of Tenant shall be deemed a violation of such provision by Tenant and a default under
this Lease. Any such violation shall not be deemed to be a default hereunder if and so long as Tenant in good faith and at its
own expense takes and diligently pursues any and all steps it is entitled to take and which steps if completed will cure said default.

 

16.8 Repetitive
Rent Payment Defaults.         NOTWITHSTANDING THE PROVISIONS OF THIS LEASE TO
THE CONTRARY, IF IN ANY ONE (1) PERIOD OF TWELVE (12) CONSECUTIVE MONTHS, TENANT SHALL HAVE BEEN IN DEFAULT IN THE PAYMENT OF RENT
HEREIN AT LEAST THREE (3) TIMES AND LANDLORD, BECAUSE OF SUCH DEFAULTS, SHALL HAVE SERVED UPON TENANT WITHIN SUCH TWELVE (12) MONTH
PERIOD THREE (3) OR MORE NOTICES OF LATE PAYMENT, THEN THE FOURTH DEFAULT SHALL BE DEEMED TO BE A NON-CURABLE DEFAULT AND LANDLORD
SHALL BE ENTITLED TO IMMEDIATE POSSESSION OF THE PREMISES.

 

16.9 Cure Period.
Notwithstanding any other provision of this Section, Landlord and Tenant agree that if the default complained of, other than for
the payment of monies, is of such a nature that the same cannot be cured within the twenty (20) day period for curing as specified
in the written notice relating thereto, then such default shall be deemed to be cured by the other party within such period of
twenty (20) days if the other party shall have commenced thereof and shall continue thereafter with all due diligence to effect
such cure and does so complete the same with the use of such diligence as aforesaid.

 

16.10 Late Charges.
A late charge in the amount of ten percent (10%) of the delinquent payment shall be assessed to any payment required to be made
by Tenant to Landlord under the terms of this Lease not received by Landlord within three (3) days after its due date (regardless
of whether Tenant has been given notice of such failure of payment). If Tenant tenders to Landlord a check that is returned marked
“NSF” or its equivalent, Tenant shall pay Landlord a payment in the amount of twenty percent (20%) of the amount of
such non-negotiable check. Tenant’s failure to pay any such late charge within three (3) days after Landlord’s written
demand therefor shall constitute an Event of Default hereunder. In addition to the payments set forth in the preceding two sentences,
Tenant shall pay Landlord interest at the rate of eighteen percent (18%) per annum from the date any payment is due until the date
such payment is actually received by Landlord.

 

 

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17.         Condemnation.
If title to all or any portion of the Premises is taken by a public or quasi-public authority under any statute or by right of
eminent domain of any governmental body, whether such loss or damage results from condemnation of part or all of the Premises,
Tenant shall not be entitled to participate or receive any part of the damages or award except where the same shall provide for
Tenant’s moving or other reimbursable expenses, the portion thereof allocated to the taking of Tenant’s trade fixtures,
equipment and personal property or to a loss of business by Tenant. Should any power of eminent domain be exercised after Tenant
is in possession, such exercise shall not void or impair this Lease unless the amount of the Premises so taken substantially and
materially impairs the usefulness of the Premises for the purposes for which they are leased in which case, either party may cancel
this Lease by notice to the other within sixty (60) days after such possession. Should only a portion of the Premises be taken
and the Premises continue to be reasonably suitable for Tenant’s use, the rent shall be reduced from the date of such possession
in direct proportion to the reduction in the square footage of the Premises. Notwithstanding the language of this Paragraph, Tenant
shall be allowed to separately litigate its damages for loss of its business as a result of any condemnation.

 

18.         Tenant’s
Waiver of Statutory Rights. In the event of any termination of the Term (or any repossession of the Premises), Tenant so far
as permitted by law, waives (i) any notice of reentry or of the institution of legal proceedings to that end; and (ii) the benefits
of any laws now or hereafter in force exempting property from liability for rent or for debt.

 

19.         Waiver
of Performance. No failure by Landlord or Tenant to insist upon the strict performance of any term or condition hereof or to
exercise any right, power or remedy consequent upon a breach thereof and no submission by Tenant or acceptance by Landlord of full
or partial rent during the continuance of any such breach shall constitute a waiver of any such breach or of any such term. No
waiver of any breach shall affect or alter this Lease (which shall continue in full force and effect), or the respective rights
of Landlord or Tenant with respect to any other then-existing or subsequent breach.

 

20.         Remedies
Cumulative. Each right, power and remedy provided for in this Lease now or hereafter existing at law, in equity or otherwise
shall be cumulative and concurrent and shall be in addition to every other right, power or remedy provided for in this Lease now
or hereafter existing at law, in equity or otherwise; and the exercise or beginning of the exercise of any one or more of the rights,
powers or remedies provided for in this Lease shall not preclude the simultaneous or later exercise of any or all such other rights,
powers or remedies.

 

 

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21.         Conveyance
by Landlord. In the event Landlord or any successor Landlord shall convey or otherwise dispose of the Premises, it shall thereupon
be released from all liabilities and obligations imposed upon Landlord under this Lease (except those accruing prior to such conveyance
or other disposition) and such liabilities and obligations shall be binding solely on the then owner of the Premises.

 

22.         No
Personal Liability to Landlord. Tenant shall look solely to Landlord’s interest in the Premises for the satisfaction
of any judgment or decree requiring the payment of money by Landlord based upon any default under this Lease, and no other property
or assets of Landlord, or any partner or member of, or shareholder in, Landlord, shall be subject to levy, execution or other enforcement
procedures for satisfaction of any such judgment or decree.

 

23.         Attorneys’
Fees. In the event Landlord retains an attorney to enforce its rights under this Lease or to bring suit for possession of the
Premises, for the recovery of any sum due hereunder, or for any other relief against Tenant, declaratory or otherwise, arising
out of a breach of any term of this Lease, or in the event Tenant should bring any action for any relief against Landlord, declaratory
or otherwise, arising out of this Lease, the prevailing party shall be entitled to receive from the other party reasonable attorneys’
fees and reasonable costs and expenses, which shall be deemed to have accrued due to the commencement of such action and shall
be enforceable whether or not such action is prosecuted to judgment.

 

24.         Provisions
Subject to Applicable Law. All rights, powers and remedies provided herein shall be exercised only to the extent that the exercise
thereof shall not violate any applicable law and are intended to be limited to the extent necessary so that they shall not render
this Lease invalid or unenforceable under any applicable law. If any term of this Lease shall be held to be invalid, illegal or
unenforceable, the validity of the other terms of this Lease shall in no way be affected thereby.

 

25.         Right
to Cure Tenant’s Defaults. In the event Tenant shall breach any term, covenant or provision of this Lease, Landlord may
at any time, without notice, cure such breach for the account and at the expense of Tenant. If Landlord at any time, by reason
of such breach, is compelled to pay or elects to pay any sum of money or to do any act that will require the payment of any sum
of money, or is compelled to incur any expense, including reasonable attorneys’ fees, incurred in instituting, prosecuting
or defending any actions or proceedings to enforce Landlord’s rights under this Lease or otherwise, the sum or sums so paid
by Landlord, with all interest, costs and damages, shall be deemed to be Additional Charges and shall be paid by Tenant to Landlord
on the first day of the month following the incurring of such expenses of the payment of such sums and shall include interest at
the rate of eighteen percent (18%) per annum from the date Landlord makes a payment until Tenant pays such Additional Charges in
full.

 

 

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26.         Notices.
Any notice to be given by Landlord or Tenant shall be given exclusively in writing and delivered in person or by overnight mail
service to Landlord or Tenant, forwarded by certified or registered mail, postage prepaid, or sent via facsimile transmission,
to the address indicated in the Fundamental Lease Provisions, unless the party giving any such notice has been notified, in writing,
of a change of address. Any such notice shall be deemed effective (a) upon receipt or refusal to accept delivery, if personally
delivered; (b) on the next business day following delivery to the overnight courier; (c) in the case of certified mailing, on the
date of actual delivery as shown by the addressee’s receipt or upon the expiration of three (3) business days following the
date of mailing, whichever occurs first; or (d) in the case of facsimile transmission, upon receipt (a written confirmation of
successful transmission from the transmitting facsimile machine being prima facie evidence of such receipt).

 

27.         Signs.
Tenant shall not place, alter, exhibit, inscribe, paint or affix any sign, awning, canopy, advertisement, notice or other lettering
on any part of the outside of the Premises, or of the building of which the Premises is a part, or inside the Premises if visible
from the outside, without first obtaining Landlord’s written approval thereof, which shall not be unreasonably withheld,
and if so approved, Tenant shall maintain the same in good condition and repair. All signs shall comply with applicable ordinances
or other governmental restrictions and with all applicable rules and regulations then in force or as may be put in force and effect
from time to time by any governmental authority or by Landlord.

 

28.         Landlord’s
Inspections.

 

28.1 Inspection.
Landlord reserves the right to, at all reasonable times, by itself or by its duly authorized agents, employees and contractors,
and without notice to go upon and inspect the Premises and every part thereof, to enforce or carry out the provisions of this Lease,
to make, at its option, repairs, installations, alterations, improvements and additions to the Premises or the building of which
the Premises are a part, to perform any defaulted obligation of Tenant or for any other proper purposes. Landlord also reserves
the right to install or place upon or affix to the roof and exterior walls of the Premises: equipment, signs, displays, antennae
and any other object or structure of any kind, provided the same shall not interfere with Tenant’s occupancy or materially
impair the structural integrity of the building of which the Premises are a part.

 

28.2 Presenting
for Sale or Lease. Landlord hereby reserves the right during usual business hours to enter the Premises and to show the same
for purposes of sale, lease or mortgage, and during the last six (6) months of the term of this Lease, or the extension thereof,
to exhibit the same to any prospective tenant, and to display appropriate signage for such sale or lease. Prospective purchasers
or tenants authorized by Landlord may inspect the Premises during reasonable hours at any time.

 

 

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29.         Estoppel
Certificate. Tenant will execute, acknowledge and deliver to Landlord, within seven (7) days following a written request therefor,
a certificate certifying (a) that this Lease is unmodified and in full force (or, if there have been modifications, that the Lease
is in full force and effect, as modified, and stating the modifications); (b) the dates, if any, to which rent, Additional
Charges and other sums payable hereunder have been paid; (c) that no notice has been received by Tenant of any default which has
not been cured, except as to defaults specified in such certificate; and (d) this Lease is and shall be subordinate to any existing
or future deed of trust, mortgage or security agreement placed upon the Premises or the Project by the Landlord or owner of the
Property. Any claim of Tenant in contradiction of any of the foregoing matters must be set forth with specificity in the certificate.
Any such certificate may be relied upon by any prospective purchaser or encumbrancer of the Premises or any part thereof. Tenant’s
failure to deliver such certificate within the time permitted hereby shall be conclusive upon Tenant that this Lease is in full
force and effect, except to the extent any modification has been represented by Landlord, and there are no uncured defaults in
Landlord’s performance, and that not more than one month’s rent has been paid in advance. In addition, at Landlord’s
option, after notice to Tenant and expiration of applicable grace period under this Lease, such failure of Tenant to deliver such
certificate shall constitute an Event of Default. Tenant acknowledges and agrees that the promise to issue such statements pursuant
hereto are a material consideration inducing Landlord to enter into this Lease and that the breach of such promise shall be deemed
a material breach of this Lease.

 

30.         Waiver
of Trial By Jury. TENANT HEREBY WAIVES ALL RIGHTS TO TRIAL BY JURY IN ANY CLAIM, ACTION, PROCEEDING OR COUNTERCLAIM BY EITHER
LANDLORD OR TENANT AGAINST EACH OTHER ON ANY MATTERS ARISING OUT OF OR IN ANY WAY CONNECTED WITH THIS LEASE, THE RELATIONSHIP OF
LANDLORD AND TENANT, AND/OR TENANT’S USE OR OCCUPANCY OF THE LEASED PREMISES. TENANT AGREES THAT EXCLUSIVE JURISDICTION FOR
ALL LEGAL ACTIONS SHALL BE COCONINO COUNTY SUPERIOR COURT.

 

31.         Recording.
Neither this Lease nor a memorandum thereof, may be recorded, or otherwise made public, by any means, without the express written
consent of Landlord. Any such recording or publication without such consent, shall, at Landlord’s option, cause this Lease
and all rights of Tenant hereunder, to be immediately forfeited and of no further force and effect, provided, however, that Landlord
shall have the right to such action against Tenant, for damages resulting from such recording, as Landlord shall be entitled to
by law.

 

32.         Subordination.
This Lease is hereby declared to be subject and subordinate to the lien of any present or future encumbrance or encumbrances upon
the Premises or the Project, irrespective of the time of execution or the time of recording of any such encumbrance or encumbrances.
Landlord shall use its good faith efforts to obtain for Tenant an attornment and non-disturbance agreement from any lender which
has a lien on the Premises. This subordination is subject to the right of Tenant upon a foreclosure or other action taken under
any mortgage by the holders thereof to have this Lease and the rights of Tenant hereunder not be disturbed but to continue in full
force and effect so long as Tenant shall not be in default hereunder. The word “encumbrance” as used herein includes
mortgages, deeds of trust or other similar instruments, and modifications, extensions, renewals and replacements thereof, and any
and all advances thereunder.

 

 

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33.       Miscellaneous.

 

33.1 Definition
of Tenant. The Term “Tenant” shall include legal representatives, successors and permitted assigns. All covenants
herein shall be made binding upon Tenant and construed to be equally applicable to and binding upon its agents, employees and others
claiming the right to be in the Premises or in the building or in the building through, under or above Tenant.

 

33.2 Tenant.
If more than one individual, firm, or corporation shall join as Tenant, singular context shall be construed to be plural wherever
necessary and the covenants of Tenant shall be the joint and several obligations of each party signing as Tenant and when the parties
signing as Tenant are partners, it shall be the obligation of the firm and of the individual members thereof.

 

33.3 Gender and
Number. Whenever from the context it appears appropriate, each item stated in the singular shall include the plural and vice
versa and the masculine, feminine, or neuter form shall included the masculine, feminine and neuter forms.

 

33.4 Modifications
and Waivers. No change, modification, or waiver of any provision of this Lease shall be valid or binding unless it is in writing
dated after the date hereof and signed by the parties intended to be bound. No waiver of any breach, term, or condition of this
Lease by either party shall constitute a subsequent waiver of the same or any other breach, term, or condition.

 

33.5 Implied Warranties.
OTHER THAN AS SET FORTH IN THIS LEASE, TENANT AND LANDLORD EXPRESSLY AGREE THAT THERE ARE AND SHALL BE NO IMPLIED WARRANTIES OF
MERCHANTABILITY, HABITABILITY, FITNESS FOR A PARTICULAR PURPOSE OR ANY OTHER KIND ARISING OUT OF THIS LEASE, AND THERE ARE NO WARRANTIES
WHICH EXTEND BEYOND THOSE EXPRESSLY SET FORTH IN THIS LEASE.

 

33.6 Binding Effect.
This Lease shall be binding upon and shall inure to the benefit of the parties and their respective heirs, personal representatives,
successors and assigns. This provision shall not be deemed to grant Tenant any right to assign this Lease or sublet the Premises
or any part thereof other than as provided in this Lease.

 

 

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33.7 Severability.
To the fullest extent possible each provision of this agreement shall be interpreted in such fashion as to be effective and valid
under applicable law. If any provision of this Lease is declared void or unenforceable with respect to particular circumstances,
such provision shall remain in full force and effect in all other circumstances. If any provision of this Lease is declared void
or unenforceable, such provision shall be deemed severed from this Lease, which shall otherwise remain in full force and effect.

 

33.8 Governing
Law and Jurisdiction. Except where preempted by the laws of the United States or the rules or regulations of any agency or
instrumentality thereof, this Lease is to be interpreted, construed and governed by the laws of the State of Arizona. The parties
irrevocably and unconditionally submit to the exclusive jurisdiction of the Superior Court of the State of Arizona for the County
of Coconino in connection with any legal action or proceeding arising out of or relating to this Lease and the parties waive any
objection relating to the basis for personal or in rem jurisdiction or to venue which it may now or hereafter have in any such
suit, action or proceeding.

 

33.9 Entire Agreement.
This instrument constitutes the sole and only agreement between Landlord and Tenant respecting the Premises, the leasing of the
Premises to the Tenant, or the Lease term herein specified, and correctly sets forth the obligations of the Landlord and Tenant
to each other as of its date. Any agreements or representations by the Landlord to the Tenant not expressly set forth in this instrument
are void and unenforceable. All prior agreements and understanding of the parties with respect to such subject matter are hereby
superseded. No representations, promises, agreements, or understandings contained in this Lease regarding the subject matter hereof
shall be of any force or effect unless in writing, executed by the party to be bound, and dated on or subsequent to the date hereof.
Captions and headings are for convenience only and shall not alter any provision or be used in the interpretation of this Lease.

 

33.10 Time is of
the Essence. Time is of the essence of this Lease and each and every provision hereof. Any extension of time granted for the
performance of any duty under this Lease shall not be considered an extension of time for the performance of any other duty under
this Lease.

 

33.11 Brokers.
Landlord and Tenant represent and warrant that neither has entered into any agreement with, nor otherwise had any dealings with,
any broker or agent in connection or execution of this Lease which could form the basis of any claim by any such broker or agent
for a brokerage fee or commission, finder’s fee, or any other compensation of any kind or nature in connection with this
Leasehold.

  

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	LANDLORD:	 	TENANT:
	 	 	 
	SINAGUA PLAZA II, L.L.C., An Arizona	 	L’AUBERGE ORCHARDS LLC, an
	limited liability company	 	Arizona limited liability company
	 	 	 
	By:	JOHNAL CORPORATION, an	 	 	 
	 	Arizona corporation	 	 	 
	 	 	 	 	 
	Its:	Manager	 	By:	/s/ Al Spector
	 	 	 	 	Al Spector
	 	By:	/s/ John Carleton	 	Its:	Manager
	 	 	John Carleton	 	 	 
	 	Its:	President	 	 	 
	 	 	 	 	 	 
	 	By:	/s/ Al Spector	 	 	 
	 	 	Al Spector	 	 	 
	 	Its:	Vice President	 	 	 

 

    	 

    	 

     

 

    	 

    	 

     

 Exhibit H 

 

SECOND AMENDMENT TO LEASE

 

(Orchards Annex)

 

THIS SECOND AMENDMENT TO LEASE (“Amendment”)
executed and effective as of May 14, 2013 by and between Canyon Portal II, L.L.C., an Arizona limited liability company (“Landlord”)
and Orchards Annex, LLC, an Arizona limited liability company (“Tenant”).

 

WHEREAS, Landlord and Tenant entered into
that certain Lease dated March 13, 2009 (“Original Lease”), whereby Landlord leased to Tenant and Tenant leased from
Landlord that certain 40 unit hotel property located in Sedona, Arizona described in the Original Lease;

 

WHEREAS, the Original Lease was modified
by that certain Amendment to Lease dated July 1, 2011 (“First Amendment”), whereby Landlord and Annex amended the Original
Lease to, among other things, increase the Minimum Monthly Base Rental and reduce the number of hotel units leased pursuant to
the Original Lease (the Original Lease and First Amendment are hereinafter collectively referred to as the “Lease”);

 

WHEREAS, Landlord and Tenant desire to further
amend the terms of the Lease pursuant to the provisions of this Amendment.

 

NOW, THEREFORE, in consideration of the
above recitals, the mutual promises contained herein, and other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, Landlord and Tenant agree as follows:

 

1. Rent. The total gross monthly rent (which rent is
inclusive of, and shall obligate Landlord to provide, liability insurance, property taxes, parking lot improvements and common
area utilities) payable under the Lease is hereby reduced to $9,815 for the period commencing on July 1, 2013, through the fifth
(5th) anniversary of the date hereof. Thereafter, the total gross monthly rent payable under this Lease shall be adjusted
in accordance with that portion of Section 6 of the First Amendment beginning with the second sentence of such Section 6.

 

2. Lease Term. Section 5 of the First Amendment is hereby
deleted in its entirety and replaced with the following:

 

(a)          Landlord
grants to Tenant the right to extend the Lease Term for three (3) additional periods of ten (10) years each.

 

3. Approval of Financial Statement. Section 3.2 of the
Original Lease is hereby deleted in its entirety.

 

4. Parking Charges. Section 7.3 of the Original Lease
is hereby deleted in its entirety.

 

5. Prescribed Conduct. Section 8.3(G) of the Original
Lease is hereby deleted in its entirety.

 

6. Operation of Premises. Section 8.4 of the Original
Lease is hereby deleted in its entirety and replaced with the following:

 

    	 

    	 

       

A.           Tenant
shall operate its business on the Premises during the entire Term of this Lease. Subject to inability by reason of strikes or labor
disputes or other reasons beyond Tenant’s reasonable control, Tenant shall continuously and uninterruptedly conduct its business
365 days per year.

 

B.           Tenant
covenants and agrees that it will continuously and uninterruptedly from and after its initial opening for business, operate and
conduct under the provisions of this Lease, except (i) while the Premises are untenantable by reason of fire or other casualty;
or (ii) closed for purposes of remodeling, not to exceed a cumulative of thirty (30) days during any five (5) year period. Tenant
shall fully utilize the Premises for its business and shall at all times keep and maintain upon the Premises trade fixtures and
inventory.

 

7. Written Approval of Tenant Alterations. Section 9.3
of the Original Lease is hereby amended to including the following: “Notwithstanding the foregoing to the contrary, Landlord’s
approval of any request by Tenant to make any alterations, additions or improvements to the Premises shall not be unreasonably
withheld, conditioned or delayed and Landlord shall not have the right to require Tenant, or its contractor, to secure a labor
and materials payment bond for any alterations, additions or improvements to the Premises the value of which is Two Hundred Fifty
Thousand Dollars ($250,000) or less in any single instance. Tenant agrees to not make any payment for such alterations, additions
or improvements without obtaining lien waivers for labor or materials provided.”

 

8. Premises Utilities. Notwithstanding anything provided
in Section 10.5 of the Original Lease to the contrary, Landlord shall, at Landlord’s expense, cause to be provided to the
Premises all lines for water, gas, sewer, and electricity necessary for the operation of the Premises for the Permitted Use.

 

9. Common Area Maintenance Expenses. The following items
shall not be included in Landlords calculation of Common Area Maintenance Expenses pursuant to Section 11.1 of the Original Lease:

 

(i)          depreciation;

 

(ii)         costs
of repairing and replacing to the extent that proceeds of insurance or condemnation awards are received therefor;

 

(iii)        costs
incurred in renovating or otherwise improving, decorating, painting or altering space for tenants in the Project;

 

(iv)        cost
of procuring or relocating tenants, including attorneys’ fees, accounting fees, design fees, advertising expenses and broker
commissions;

 

(v)         expenses
incurred in connection with the enforcement of the terms of any lease, including the cost of removing and storing the property
of former occupants of the Project;

 

(vi)        cost
of any special or unique service furnished on a selective basis to individual occupants of the Project;

 

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(vii)       ground
rents, debt service payments, loan origination fees, loan closing costs and similar expenses relating to indebtedness encumbering
the Project;

 

(viii)      promotional,
marketing or entertainment expenses, including charitable or political contributions;

 

(ix)         fines
or penalties assessed against Landlord which are not the result of Tenant’s failure to timely perform any obligation of Tenant
under this Lease;

 

(x)          Except
as provided in Section 11.1(A)(4), property management fees; salaries or other compensation paid to executive employees above the
grade of Project or property manager (including profit sharing, bonuses and 401(k) savings plans); expenses relating to the formation,
modification, maintenance and dissolution of the entity comprising Landlord, including accounting, auditing and legal fees and
key man disability insurance; any expense representing an amount paid by Landlord to a related entity which is in excess of the
amount which would have been paid in the absence of that relationship; Landlord’s general overhead and general and administrative
expenses, including costs relating to accounting, payroll and computer services; rental costs relating to any management office
(on or off site) and costs associated with the purchase or rental of furniture, fixtures or equipment for Landlord’s offices;

 

(xi)         costs
incurred by Landlord to rectify violations of laws existing as of the Effective Date;

 

(xii)        reserves;

 

(xiii)       cost
of repairing damage caused by the negligence of Landlord, its agents, employees and contractors or other tenants and their respective
agents, employees and contractors;

 

(xiv)      costs
for investigating, monitoring or remediation Hazardous Materials not caused by Tenant, Tenant’s agents, contractors, or employees;
and

 

(xv)       capital
expenditures, except those (i) made primarily to reduce Common Area Costs or to comply with any Laws or other governmental requirements
enacted after the effective date of this Lease, or (ii) for repairs (as opposed to additions or new improvements, except that Landlord
shall be permitted to include new improvements involving signs for the Center or the upgrading or addition of lights in the parking
and other Common Areas), or (iii) repairs of sidewalks, curb cuts, and driveways; provided, all such permitted capital expenditures
(together with reasonable finance charges) shall be amortized on a straight-line basis without interest for purposes of this Lease
over the shorter of seven (7) years or the useful life of such improvement. Tenant shall be responsible for Tenant’s Proportionate
Share of such permitted amortization of capital expenditures during the Term.

 

10. Tenant’s Proportionate Share.
The second full paragraph of Section 11.1 of the Original Lease is hereby deleted in its entirety and replaced with the following:

 

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“Tenant’s Proportionate Share shall be the ratio
that the total floor area of the Premises bears to the total floor area of all buildings in the Project which are from time to
time completed as of the first day of each calendar quarter.”

 

11. Tenant’s Obligation. Notwithstanding anything
in Section 12.1 of the Original Lease to the contrary, Tenant shall keep and maintain in good order, condition and repair (including
such replacement, periodic painting and restoration as is required for that purpose), the landscaping and signage appurtenant to
the Premises.

 

12. Insurance. Notwithstanding Section 15.1 of the Original
Lease to the contrary, Landlord shall maintain the insurance coverages provided in Section 15.1 and such coverages for general
liability, bodily injury and property damage shall be in an amount of not less than $3,000,000 and fire and extended coverage in
an amount not less than the full replacement cost of the Premises.

 

13. Repair. Section 15.7 of the Lease is hereby deleted
in its entirety.

 

14. Damage or Destruction. Section 16 of the Lease is
hereby deleted in its entirety and replaced with the following:

 

“If all or any portion of the Premises or the Project
is damaged by fire or other casualty insurable under a standard fire insurance policy with a standard extended coverage endorsement,
Minimum Monthly Rental and Additional Rent shall abate and Landlord shall promptly repair as is necessary to replace the Premises
and when placed in such condition the Premises shall be deemed restored and rendered tenantable, such repair or rebuilding to be
commenced within a reasonable time after the occurrence. If such damage occurs in the last two years of the Lease Term or during
any Option Term, Tenant or Landlord shall have the option of terminating the Lease upon written notice to the other party. If Landlord’s
Lender requires that the insurance proceeds be used to retire the debt, Landlord shall have no obligation to rebuild, and this
Lease shall terminate upon notice to Tenant. Promptly following Landlord’s repair or rebuilding, Tenant, at Tenant’s
sole expense, shall repair or replace its stock in trade, fixtures, furniture, furnishings, floor coverings and equipment, and
if Tenant has closed, Tenant shall promptly reopen for business.”

 

15. Indemnification.

 

a. Section 18.1 of the Original Lease is
hereby deleted in its entirety and replaced with the following:

 

“By
Tenant.Excepting any responsibility allocated to Landlord by reason of its gross negligence (excluding from this exception,
however, any responsibility allocated to Landlord by reason of its failure to enforce the terms of this Lease), Tenant shall indemnify,
defend and hold Landlord harmless for, from and against all liabilities, obligations, claims, suits, damages, penalties, causes
of action, costs and expenses (including without limitation, reasonable attorneys’ fees and expenses) imposed upon or asserted
against Landlord by reason of the gross negligence or willful misconduct of Tenant, its agents, employees, contractors, suppliers,
licensees, invitees and guests and/or the occurrence of any of thefollowing during the Term: (i) any use, non-use or condition
of the Premises or any part thereof; (ii) any accident, injury to or death of persons (including workmen) or loss of or damage
to property occurring on or about the Premises or any part thereof; (iii) any failure on the part of Tenant to perform or comply
with any of the provisions of this Lease; (iv) performance of any labor or services or the furnishings of any materials or other
property in respect of the Premises or any part thereof (excluding any such matters performed or furnished by or at the request
of Landlord and unrelated to a default of Tenant under this Lease); or (v) any failure on the part of Tenant to clean up and/or
dispose of any Hazardous Materials, as described in Section 13.2 above, in accordance with the requirements of this Lease and applicable
law. In the event Landlord should be made a defendant in any action, suit or proceeding brought by reason of any such occurrence,
Tenant shall, at its own expense, resist and defend such action, suit or proceeding or cause the same to be resisted and defended
by legal counsel designated by Tenant but approved by Landlord. If any such action, suit or proceeding should result in a final
judgment against Landlord, Tenant shall promptly satisfy and discharge such judgment or shall cause such judgment to be promptly
satisfied and discharged. The obligations of Tenant under this Section 18 arising by reason of any such occurrence taking place
while this Lease is in effect shall survive the termination of this Lease.”

 

    	4

    	 

      

b. Section 18.2 of the Original Lease is
hereby deleted in its entirety and replaced with the following:

 

“By Landlord.Landlord shall
save, hold harmless and indemnify Tenant for, from and against all liabilities, obligations, claims, suits, damages, penalties,
causes of action, costs and expenses (including, without limitation, reasonable attorneys’ fees and expenses) imposed upon
or asserted against Tenant by reason of the gross negligence or willful misconduct of Landlord or its agents, contractors, servants
or employees and/or the occurrence of any of the following during the Term: (i) any use or condition of the Premises or any part
thereof (which Landlord is required to maintain); (ii) any accident, injury to or death of persons (including workmen) or loss
of or damage to property occurring on or about the Common Areas; (iii) any failure on the part of Landlord to perform or comply
with any of the provisions of this Lease; and (iv) performance of any labor or services or the furnishings of any materials or
other property in respect of the Premises or any part thereof (excluding any such matters performed or furnished by or at the request
of Tenant). In the event Tenant should be made a defendant in any action, suit or proceeding brought by reason of any such occurrence,
Landlord shall, at its own expense, resist and defend such action, suit or proceeding or cause the same to be resisted and defended
by legal counsel designated by Landlord but approved by Tenant. If any such action, suit or proceeding should result in a final
judgment against Tenant, Landlord shall promptly satisfy and discharge such judgment or shall cause such judgment to be promptly
satisfied and discharged. The obligations of Landlord under this Section 18 arising by reason of any such occurrence taking place
while this Lease is in effect shall survive the termination of this Lease.”

 

16. Waiver of Subrogation. Except with respect to Worker’s
Compensation, to which no waiver of subrogation will apply, each party hereby waives any and every right or cause of action for
the events which occur or accrue during the Lease Term for any and all loss of, or damage to, any of its property (whether or not
such loss or damage is caused by the fault or negligence of the other party or anyone for whom said other party may be responsible),
which loss or damage is covered by valid and collectible fire, extended coverage, “All Risk” or similar policies covering
real property, personal property or business interruption insurance policies, to the extent that such loss or damage is recovered
under said insurance policies. Said waivers shall be in addition to, and not in limitation or derogation of, any other waiver or
release contained in this Lease with respect to any loss or damage to property of the parties hereto. Written notice of the terms
of such mutual waivers shall be given to each insurance carrier and the insurance policies shall be properly endorsed, if necessary,
to prevent the invalidation of coverage by reason of said waivers.

 

    	5

    	 

      

17. Assignment and Subletting. Article 19 of the Original
Lease is hereby deleted in its entirety and replaced with the following:

 

“Tenant shall have the right to transfer or assign this
Lease or sublet all or any portion of the Premises with Landlord’s consent, which consent shall not be unreasonably withheld;
provided, the assignee or subtenant expressly assumes all obligations of Tenant under the Lease. Notwithstanding the foregoing,
Landlord shall not have the right to consent to any assignment or subletting of this Lease or any portion of the Premises to an
entity which controls, is controlled by or is under common control with Tenant, and Landlord shall not withhold its consent to
any proposed assignee or subtenant with financial wherewithal equal to or superior to that of Tenant and who is actively engaged
in the hospitality industry.”

 

18. Estoppels. The period in which Tenant must respond
to a request for an estoppel pursuant to Section 34 of the Lease is hereby modified from three (3) days to ten (10) business days.
In the event Tenant fails to respond within such ten (10) business day period, Tenant shall be deemed in default under Section
21.1 of the Lease, but in no event will Tenant’s failure to respond be deemed an acknowledgement of any proported facts contained
in any form estoppel .

 

19. Conflicting Terms. In the event of any conflict,
inconsistency or ambiguity between the terms of this Amendment and the Lease, the terms of this Amendment shall control.

 

20. Defined Terms.
Capitalized terms not otherwise defined herein shall have the meaning ascribed to them in the Lease.

 

21. Multiple Counterparts. This Amendment may be executed
in multiple counterparts, each of which shall be deemed an original and together shall constitute one and the same instrument.

 

22. Ratification. Except as expressly modified by this
Amendment, the Lease remains unmodified and in full force and effect.

 

[THE REMAINDER OF THIS PAGE IS INTENTIONALLY
LEFT BLANK]

 

[SIGNATURE PAGE FOLLOWS]

 

    	6

    	 

      

IN WITNESS WHEREOF, the parties have executed this Amendment
as of the day and year above first written.

 

“Landlord”

 

Canyon Portal II, L.L.C., an Arizona limited liability company

 

	By:	/s/ Al Spector	 
	 	 	 
	Name:	Al Spector	 
	 	 	 
	Title:	Manager	 

 

“Tenant”

 

Orchards Annex LLC , an Arizona limited liability company

 

	By:	/s/ Al Spector	 
	 	 	 
	Name:	Al Spector	 
	 	 	 
	Title:	Manager	 

 

Second Amendment to Lease (Orchards Annex)

 

    	 

    	 

     

 

 

 

AMENDMENT TO LEASE

 

This Amendment to Lease
("Amendment") is entered into with an effective date of July 1, 2011 by and between Canyon Portal II, L.L.C., an Arizona
limited liability company ("Landlord") and Orchards Annex, LLC (" Tenant").

 

RECITALS

 

A.           Landlord
and Tenant entered into a Lease ("Lease") with a Commencement Date of March 1, 2009 with respect to the 40 Unit hotel
property reflected on Exhibit A of the Lease ("Premises").

 

B.           Tenant
owes to Landlord past due Rent.

 

C.           Landlord
and Tenant desire to extend the term of the Lease.

 

D.          The
terms used herein shall have the same meaning as in the Lease.

 

E.           Tenant
and Landlord desire to further amend the lease as follows.

 

IT IS AGREED AS FOLLOWS:

 

1.          Forgiveness
of Past Due Rent. As of June 30, 2011, Tenant owes the sum of One Hundred Ninety Six Thousand Nine Hundred Sixty One Dollars
and Eighteen Cents ($196,961.18) in past due rent. Landlord agrees to write off this sum of past due rent. Landlord agrees that
Tenant shall not be liable at any time in the future for payment of this sum to Landlord.

 

2.          Lease
Term. Landlord and Tenant have agreed to amend the Lease Term so that the Termination Date of the Lease shall be December 31,
2040.

 

3.          Minimum
Monthly Base Rental. 

 

	TIME PERIOD	 	MINIMUM MONTHLY BASE RENTAL	 
	August 1, 2011 to October 31, 2011	 	$	33,585.96	 
	November 1, 2011 to February 28, 2012	 	 	-0-	 
	March 1, 2012 to October 31, 2012	 	$	22,000.00	 
	November 1, 2012 to December 31, 2012	 	 	-0-	 

 

 

    	1

    	 

     

The amounts above include rental tax. There will be no Management
Fees due or payable by Tenant to Landlord for the time period above.

 

Common Area Maintenance Charges:

 

	TIME PERIOD	 	COMMON AREA MAINTENANCE CHARGES	 
	August 1, 2011 to October 31, 2011	 	 	-0-	 
	November 1, 2011 to February 28, 2012	 	 	-0-	 
	March 1, 2012 to October 31, 2012	 	$	16,000.00	 
	November 1, 2012 - December 31, 2012	 	 	-0-	 

 

Thereafter Common Area Maintenance Charges will be payable only
in the months of March through October of each subsequent year.

 

4.          Management
Fees. Commencing on January 1, 2013 Management Fees will be due and payable only in the months of March through October of
2013 and in each subsequent year.

 

5.          Extension
of Term. Paragraph 4.6 of the Lease is amended as follows: Provided that (I) this Lease is in full force and effect; (ii) Tenant
is in possession of the Premises; and (iii) Tenant has not been and is not in default under this Lease, for three (3) additional
periods of ten (10) years each. The tenancy resulting from the exercise of this option shall be upon the same terms and conditions
as set forth in the Lease, except Minimum Rent shall be adjusted upward by Landlord in the first year of the option period based
upon the prevailing market rates (Market Rent) for retail rents in the Project (as defined in Section 2). Thereafter, for years
2, 3, 4 and 5 Rent shall increase as set forth in Paragraph 4 below. The option may be exercised only upon written notice thereof
to Landlord at least six (6) months prior to the Termination Date of this Lease. Within sixty (60) days after exercise of this
option, Landlord shall, in writing, notify Tenant of the Minimum Annual Base Rental during the first year of the Extension Term.

 

The first renewal
period shall commence on the date following the originally fixed Termination Date. The second renewal period shall commence on
the date following the Termination Date of the first renewal period. The third renewal period shall commence on the date following
the Termination Date of the second renewal period. 

 

 

    	2

    	 

      

6.          Rent
Increases for Period After 2012. The Rent and CAMs provided for in this Amendment shall be subject to adjustment as described
herein commencing in the lease year beginning in 2013 and for each year thereafter and the second year of any Option Period, and
for each year thereafter as follows except for the first year of each Option Term, when rent shall be adjusted to Market Rent.
The base for computing the adjustment is the Consumers' Price Index for All Urban Consumers, United States Cities Average published
by the United States Department of Labor, Bureau of Labor Statistics (the "Index"), which is in effect on the date of
the commencement of the first day of the previous Lease year ("Beginning Index"). For example, the adjustment for year
two would be based on the Index for the first day of Lease year one. The Index published most immediately preceding the Adjustment
Date in question ("Extension Index") is to be used in determining the amount of the adjustment. If the Extension Index
has increased over the Beginning Index, the base monthly rent for the following year shall be set by multiplying the base monthly
rent for the previous year, e.g., for the 12th Lease month, by a fraction, the numerator of which is the Extension Index
and the denominator of which is the Beginning Index. However, the adjustment to the rent shall be no more than six percent (6%)
compounded per annum of the base monthly rent provided in this Amendment.

 

If the Index is changed
so that the base year differs from that in effect when the Term commences, the Index shall be converted in accordance with the
conversion factor published by the United States Department of Labor, Bureau of Labor Statistics. If the Index is discontinued
or revised during the Term, such other government index or computation with which it is replaced shall be used in order to obtain
substantially the same result as would be obtained if the Index had not been discontinued or revised.

 

7.          Premises.
From and after March 1, 2012, the Premises shall consist only of the 28 hotel units in the 3 buildings marked on Exhibit "A".

 

8.          Acknowledgment
of Landlord's Improvements. Tenant acknowledges Landlord has fulfilled its total obligation to fund the repairs and improvements
referenced in Section 2 of the Lease.

 

9.          Full
Force and Effect. Except as modified by this Amendment, the Lease and each of its terms and conditions remains in full force
and effect. 

 

	LANDLORD:	TENANT:
	 	 
	CANYON PORTAL II, L.L.C.,	ORCHARDS ANNEX LLC, an Arizona
	an Arizona limited liability company	limited liability company

  

	By: 	/s/ Al Spector	 	By:	/s/ Al Spector
	 	Al Spector	 	 	Al Spector
	Its:	Manager	 	Its:	Manager

 

    	3

    	 

     

 

    	 

    	 

      

CANYON PORTAL MOTEL

280 N. Highway 89A

 

LEASE

 

SEDONA, ARIZONA

 

Landlord: Canyon Portal II L.L.C.

 

Tenant: Orchards Annex, LLC

 

Date: March 13, 2009

 

    	 

    	 

     

TABLE OF CONTENTS

 

	SECTION 1 – FUNDAMENTAL LEASE PROVISIONS	1
	 	 
	SECTION 2 – PREMISES	2
	 	 	 
	SECTION 3 – GENERAL PROVISIONS	3
	3.1	No Option	3
	3.2	Approval of Financial Statement	3
	3.3	No Co-Tenancy Requirement	3
	3.4	Name Change	3
	 	 	 
	SECTION 4 - LEASE TERMS	3
	4.1	Term	3
	4.2	Delay in Commencement	3
	4.3	Holding Over	4
	4.4	Abandonment	4
	4.5	Surrender of Premises	4
	4.6	Extension of Term	4
	 	 	 
	SECTION 5 – RENT, SECURITY DEPOSIT	5
	5.1	Rent	5
	5.2	Security Deposit	6
	5.3	(Deleted)	6
	5.4	Additional Rent	6
	 	 	 
	SECTION 6 – NO COUNTERCLAIM OR ABATEMENT OF RENT	6
	6.1	No Notice	6
	6.2	No conditional Payment	6
	 	 	 
	SECTION 7 – COMMON AREAS	7
	7.1	Use of Common Areas	7
	7.2	Parking Policy	7
	7.3	Parking Charges	7
	 	 	 
	SECTION 8 – USE OF PREMISES	7
	8.1	Use	7
	8.2	Prohibited Conduct	7
	8.3	Prescribed Conduct	8
	8.4	Operation of Premises – Intentionally Deleted	9
	 	 	 
	SECTION 9 – TENANT’S CONSTRUCTION FO IMPROVEMENTS	9
	9.1	Tenant’s Obligation	9
	9.2	Intentionally Deleted	9

 

    	 

    	 

     

	9.3	Written Approval	10
	9.4	Trade Fixtures	10
	 	 	 
	SECTION 10 – TENANT OBLIGATIONS	10
	10.1	Payment by Tenant	10
	10.2	Payment by Landlord	10
	10.3	Proof of Payment	11
	10.4	Personal Property Taxes	11
	10.5	Premises Utilities	11
	10.6	Merchants Association	11
	 	 	 
	SECTION 11 – COMMON AREA MAINTENANCE –	11
	11.1	Expenses	11
	11.2	Common Area Expenses Estimates	13
	 	 	 
	SECTION 12 – MAINTENANCE AND REPAIRS BY TENANT	13
	12.1	Tenant’s Obligation	13
	12.2	Prohibited Acts	14
	12.3	Rights of Landlord	14
	 	 	 
	SECTION 13 – REPAIR BY LANDLORD	14
	13.1	Repair by Landlord	14
	13.2	Hazardous Materials	15
	 	 	 
	SECTION 14 – LIENS	15
	14.1	No Liens	15
	14.2	Tenant’s Obligations	16
	14.3	Removal of Liens	16
	 	 	 
	SECTION 15 – INSURANCE	16
	15.1	Project Insurance	16
	15.2	Tenant’s Property	16
	15.3	Tenant’s Operations	17
	15.4	Certificate of Insurance	17
	15.5	Insurance Companies	17
	15.6	Failure to Procure Insurance	17
	15.7	Repair	18
	 	 	 
	SECTION 16 – DAMAGE OR DESTRUCTION	18
	16.1	Tenant Obligations	18
	16.2	Lease Termination	18
	 	 	 
	SECTION 17 – EASEMENTS	19

 

 

    	 

    	 

     

	SECTION 18 – INDEMNIFICATION	19
	18.1	By Tenant	19
	18.2	By Landlord	20
	18.3	Waiver of Claims	20
	 	 	 
	SECTION 19 – ASSIGNMENT AND SUBLETTING	20
	19.1	Landlord Consent	20
	19.2	In Writing	21
	19.3	Transfer Limitation	21
	19.4	Deleted	21
	 	 	 
	SECTION 20 – SUBJECT TO MASTER LEASE	21
	 	 	 
	SECTION 21 – DEFAULTS BY TENANT	21
	21.1	Event of Default	21
	21.2	Re-Enter of Premises	22
	21.3	Lease Termination	23
	21.4	Reletting	23
	21.5	Survival of Liability	23
	21.6	Cumulative Remedies	24
	21.7	Sublessee Defaults	24
	21.8	Repetitive Rent Payment Defaults	24
	21.9	Cure Period	25
	21.10	Late Charges	25
	 	 	 
	SECTION 22 – CONDEMNATION	25
	 	 
	SECTION 23 – TENANT’S WAIVER OF STATUTORY RIGHTS	26
	 	 
	SECTION 24 – WAIVER OF PERFORMANCE	26
	 	 
	SECTION 25 – REMEDIES CUMULATIVE	26
	 	 
	SECTION 26 – CONVEYANCE BY LANDLORD	26
	 	 
	SECTION 27 – NO PERSONAL LIABILITY TO LANDLORD	26
	 	 
	SECTION 28 – ATTORNEYS’ FEES	27
	 	 
	SECTION 29 – PROVISIONS SUBJECT TO APPLICABLE LAW	27
	 	 
	SECTION 30 – RIGHT TO CURE TENANT’S DEFAULTS	27

 

 

    	 

    	 

     

	SECTION 31 – NOTICES	27
	 	 
	SECTION 32 – SIGNS	28
	 	 
	SECTION 33 – LANDLORD’S INSPECTIONS	28
	33.1	Inspection	28
	33.2	Presenting for Sale or Lease	28
	 	 	 
	SECTION 34 – ESTOPPEL CERTIFICATE	29
	 	 
	SECTION 35 – WAIVER OF TRIAL BY JURY	29
	 	 
	SECTION 36 – RECORDING	29
	 	 
	SECTION 37 – SUBORDINATION	30
	 	 
	SECTION 38 – MISCELLANEOUS	30
	38.1	Definition of Tenant	30
	38.2	Tenant	30
	38.3	Gender and Number	30
	38.4	Modifications and Waivers	30
	38.5	Implied Warranties	30
	38.6	Binding Effect	31
	38.7	Severability	31
	38.8	Governing Law and Jurisdiction	31
	38.9	Entire Agreement	31
	38.10	Time is of the Essence	31
	38.11	Brokers	32

 

    	 

    	 

     

CANYON PORTAL II, L.L.C.

LEASE

 

SECTION 1 - FUNDAMENTAL LEASE PROVISIONS.

 

	Landlord:	Canyon Portal II, L.L.C., an Arizona limited liability company
	 	 
	Tenant:	Orchards Annex, LLC, an Arizona limited liability company
	 	 
	Trade Name:	Orchards Inn
	 	 
	Lease Term:	Commencement Date: March 1, 2009
	 	 
	 	Termination Date:             December 31, 2020
	 	 
	Premises:	40 Unit hotel property reflected on Exhibit A.

 

Minimum Monthly Base Rental:

 

	Time Period	 	Minimum Monthly 
 Base Rental	 
	April 1, 2009 to October 31, 2009	 	$	10,000.00	 
	November 1, 2009 to February 28, 2010	 	 	-0-	 
	March 1, 2010 to October 31, 2010	 	$	12,000.00	 
	November 1, 2010 to February 28, 2011	 	 	-0-	 
	March 1, 2011 to October 31, 2011	 	$	15,000.00	 
	November 1, 2011 to February 28, 2012	 	 	-0-	 
	March 1, 2012 to October 31, 2012	 	$	18,000.00	 
	November 1, 2012 to February 28, 2013	 	 	-0-	 

 

Thereafter during the Lease Term each March
1 to October 31 period and each November 1 through February 28 period will increase three percent (3%) over the prior year's Minimum
Monthly Base Rental for that period. Beginning with the first year of any Option Period Rent shall be adjusted in accordance with
Paragraph 5.1B.

 

Security Deposit: None Required

 

Common Area Charges: Payable only in the
months of April 1 2009 to October 31, 2009 and thereafter only in the months of March through October each subsequent year.

 

    	 

    	 

     

	Address of Landlord:	
        Canyon Portal II, L.L.C.

        6900 E. Camelback Road, #830

        Scottsdale, AZ 85251

	 	 
	Address of Tenant:	
        Orchards Annex, LLC

        270 N. Highway 89A, Suite 11

        Sedona, AZ 86336

        Telephone: (928) 282-4527

        Fax:(928) 282-3637

	 	 
	Only Permitted Uses:	Rental of 40 hotel rooms for nightly accommodations.
	 	 
	Guarantors:	None

  

The foregoing Fundamental
Lease Provisions are an integral part of this Lease, and each reference in the body of the Lease to any Fundamental Lease Provision
shall be construed to incorporate all of the terms set forth above with respect to such Provisions.

 

SECTION 2 - PREMISES.

 

Subject to the conditions
set forth herein, Landlord hereby leases to Tenant the Premises. A site plan showing the boundaries of the Premises and its relative
location within a larger commercial development comprised of four elements including the Trading Post Shops, Canyon Portal Shops,
North Retail Building, and Orchards (the "Project") is attached hereto as Exhibit A. Tenant's acceptance of the Premises
and Agreement to the terms of this Lease are not conditioned upon any representation by Landlord of the number of square feet in
the Premises. TENANT ACKNOWLEDGES THAT IT HAS INSPECTED THE PREMISES, IS FAMILIAR WITH ITS CONDITION AND ACCEPTS THE PREMISES IN
ITS PRESENT CONDITION "AS IS." EXCEPT AS EXPRESSLY SET FORTH IN THIS LEASE, LANDLORD HAS MADE NO REPRESENTATIONS OR WARRANTIES
CONCERNING THE PREMISES OR THE PROJECT. Landlord acknowledges the exterior and the interiors of the Leased Premises need renovation.
Landlord commits that in the next twenty four (24) months it will fund directly or to Tenant the following:

 

(i)          $10,000.00
to repair the pool area

 

(ii)         $20,000.00
to repair exterior siding of motel buildings

 

(iii)        $20,000.00
to Tenant for new interior furnishings

 

    	 

    	 

     

SECTION 3 - GENERAL PROVISIONS.

 

3.1           No
Option. The submission of this Lease by Landlord, its agent or representative for examination or execution by Tenant does not
constitute an option or offer to lease the Premises upon the terms and conditions contained herein or a reservation of the Premises
in favor of Tenant, it being intended hereby that this Lease shall become binding upon Landlord only upon Landlord's delivery
to Tenant of a fully executed counterpart hereof.

 

3.2           Approval
of Financial Statement. This Lease is subject to Landlord's and Landlord's Lender's approval of a current financial statement
of Tenant. Tenant agrees to execute any and all documents Landlord's Lender may require and provide Landlord and Landlord's Lender
with credit and financial information as requested.

 

3.3           No
Co-Tenancy Requirement. Landlord reserves the right to effect such tenancies in the Project as Landlord, in the exercise of
its sole business judgment, shall determine to best promote the interest of the Project. Tenant is not relying on the fact, nor
does Landlord represent, that any specific tenant or kind of tenant or number of tenants shall, during the term of this lease,
occupy any space in the Project.

 

3.4           Name
Change. Landlord reserves the right to change the name of the Project from time to time during the term of this Lease.

 

SECTION 4 - LEASE TERM

 

4.1           Term.
The term of this Lease (herein called the "Lease Term" or the "Term") shall commence on the Commencement Date
unless the Term is terminated sooner or extended as hereinafter provided.

 

4.2           Delay
in Commencement. If Landlord, for any reason whatsoever, cannot deliver possession of the Premises to Tenant at the commencement
of the Lease Term, this Lease shall not be void or voidable, nor shall Landlord be liable for any loss or damage resulting therefrom.
In the event of a delay in possession; however, there shall be a proportionate reduction of rent covering the period between the
commencement of the Lease Term and the time when Landlord can deliver possession of the Premises. Notwithstanding the foregoing,
no delay caused by the action or inaction of Tenant or Tenant's agents shall result in a reduction of rent.

 

 

    	3

    	 

     

4.3           Holding
Over. If Tenant, upon expiration or termination of this Lease, either by lapse of time or otherwise, remains in possession
of the Premises with Landlord's written consent, but without a new lease reduced to writing and duly executed, Tenant shall be
deemed to be occupying the Premises as a tenant from month to month, subject to all covenants, conditions and provisions of this
Lease. If Tenant remains in possession without Landlord's written consent, Tenant shall be deemed to be in wrongful hold over and
shall be subject to all the rights and remedies provided to Landlord under this Lease and by law, including but not limited to
forcible entry and detainer actions or other eviction processes. During any hold over period, whether with consent or wrongful,
the monthly rent shall be two hundred percent (200%) of Tenant's monthly rent payable during the last month of the Term of this
Lease.

 

4.4           Abandonment.
If Tenant, prior to the expiration of this Lease, relinquishes possession of the Premises without Landlord's written consent, such
relinquishment shall be deemed to be an abandonment of the Premises and an Event of Default under this Lease.

 

4.5           Surrender
of Premises  . Upon any termination of this Lease for any reason, Tenant shall immediately surrender possession of the Premises
to Landlord in good and tenantable repair, reasonable wear and tear excepted, and shall surrender all keys and all copies of such
keys for the Premises to Landlord at the place then fixed for the payment of rent or other agreed upon location.

 

4.6           Extension
of Term. Provided that (i) this Lease is in full force and effect; (ii) Tenant is in possession of the Premises; and (iii)
Tenant has not been and is not in default under this Lease, Tenant shall have the right and option to extend the Term of
this Lease for five additional periods of five (5) years each. The first renewal period shall commence on the date following the
originally fixed Termination Date. The second renewal period shall commence on the date following the termination of the first
renewal period. The tenancy resulting from the exercise of this option shall be upon the same terms and conditions as set forth
in this Lease, except Minimum Annual Base Rent shall be adjusted upward or downward by Landlord based upon the prevailing market
rates for rents in the Uptown Sedona, Arizona area and in the Project. The option may be exercised only upon written notice thereof
to Landlord at least six (6) months prior to the Termination Date of this Lease. Within sixty (60) days after exercise of this
option, Landlord shall, in writing, notify Tenant of the Minimum Annual Base Rental during the first year of the Extension Term.
If Tenant fails to exercise any option during the period when the option is available, or if this Lease was or is in default or
is no longer in full force and effect for any reason, the applicable option shall be void.

 

    	4

    	 

     

SECTION 5 - RENT, SECURITY DEPOSIT AND SALES REPORTS.

 

5.1           Rent.

A.           Tenant
shall pay to Landlord the Minimum Annual Base Rental set forth in Section 1 of this Lease in twelve (12) equal monthly installments
during each Lease Year, in advance, on the first day of each calendar month. The Minimum Annual Base Rental and Additional Charges
hereinafter provided for shall be paid in lawful money of the United States to Landlord at its address or at such other place as
Landlord may from time to time designate in writing.

 

B.           The
rent provided for in this Section 5.1 shall be subject to adjustment as described herein commencing January 1, 2021 and for each
year thereafter of any Option Period. The base for computing the adjustment is the Consumers' Price Index for All Urban Consumers,
United States Cities Average published by the United States Department of Labor, Bureau of Labor Statistics (the "Index"),
which is in effect on the date of the commencement of the first day of the previous Lease year ("Beginning Index"). For
example, the adjustment for year two would be based on the Index for the first day of Lease year one. The Index published most
immediately preceding the Adjustment Date in question ("Extension Index") is to be used in determining the amount of
the adjustment. If the Extension Index has increased over the Beginning Index, the base monthly rent for the following year shall
be set by multiplying the base monthly rent for the previous year, e.g., for the 12th
Lease month, by a fraction, the numerator of which is the Extension Index and the denominator of which is the Beginning
Index. However, the adjustment to the rent shall be no less than three percent (3%) compounded per annum of the base monthly rent
provided in this Lease. As an example, if year one monthly rent is $1,000.00 and the three percent (3%) is applicable each 'year,
then monthly rent for years two through five would be: year two - $1,030.00; year three - $1,060.90; year four $1,092.73; and year
five - $1,125.52.

 

If the Index is changed
so that the base year differs from that in effect when the Term commences, the Index shall be converted in accordance with the
conversion factor published by the United States Department of Labor, Bureau of Labor Statistics. If the Index is discontinued
or revised during the Term, such other government index or computation with which it is replaced shall be used in order to obtain
substantially the same result as would be obtained if the Index had not been discontinued or revised.

 

C.           Monthly
rent for the first month shall be paid on the date the Term commences. Monthly rent for any partial month shall be prorated at
the rate of one-thirtieth (1/30) of the monthly rent per day.

 

 

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D. All rental amounts
are "net" rent to Landlord. All Additional Charges (as described in this Lease) shall be deemed rent whether or not expressly
designated as such, and shall be paid in addition to the Minimum Annual Base Rental at the times and in the manner provided for
in this Lease.

 

5.2.          Security
Deposit. None Required.

 

5.3           (Deleted).

 

5.4         Additional
Rent. In the event any additional usable square footage is acquired by the Tenant in its Premises due to alterations of or
improvements made on the original Premises (by way of example, the addition of a loft), the Minimum Annual Base Rent payable by
Tenant to Landlord under this Lease shall be increased, on a proportionate basis, to include the additional square
footage utilized by the Tenant.

 

SECTION 6 - NO COUNTERCLAIM OR ABATEMENT OF RENT.

 

6.1           No
Notice. Except as expressly provided herein, monthly rental and Additional Charges and all other sums payable by Tenant shall
be paid without notice, demand, counterclaim, setoff, recoupment, deduction or defense of any kind or nature and without abatement,
suspension, deferment, diminution or reduction. Except as expressly provided herein, Tenant waives all rights now or hereafter
conferred by statute or otherwise to quit, terminate or surrender this Lease or the Premises or any part thereof and to any abatement,
suspension, deferment, diminution or reduction of any sum payable by Tenant to Landlord.

 

6.2           No
Conditional Payment. NO PAYMENT BY TENANT OR RECEIPT BY LANDLORD OF A LESSER AMOUNT THAN THE TOTAL OF ALL SUMS DUE HEREUNDER
SHALL BE DEEMED TO BE OTHER THAN AN ACCOUNT OF THE EARLIEST STIPULATED RENT, NOR SHALL ANY ENDORSEMENT OR STATEMENT ON ANY CHECK,
OTHER PAYMENTS OR ANY ACCOMPANYING LETTER BE DEEMED AS ACCORD AND/OR SATISFACTION AND LANDLORD MAY ACCEPT SUCH CASH AND/OR NEGOTIATE
SUCH CHECK OR PAYMENT WITHOUT PREJUDICE TO LANDLORD'S RIGHT TO RECOVER THE BALANCE OF SUCH RENT OR PURSUE ANY OTHER REMEDY PROVIDED
IN THIS LEASE OR OTHERWISE, REGARDLESS OF WHETHER LANDLORD MAKES ANY NOTATION ON SUCH INSTRUMENT OF PAYMENT OR OTHERWISE NOTIFIES
TENANT THAT SUCH ACCEPTANCE, CASHING OR NEGOTIATION OF SUCH PAYMENT IS WITHOUT PREJUDICE TO ANY OF LANDLORD'S RIGHTS. TENANT SPECIFICALLY
WAIVES THE PROVISIONS OF A.R.S. 47-1207.

 

 

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SECTION 7 - COMMON AREAS.

 

7.1           Use
of Common Areas. All facilities furnished by Landlord in the Project and designated for the general common use of occupants
of the Project, including Tenant hereunder, its officers, agents, employees and customers, shall at all times be subject to the
exclusive control and management of Landlord. Landlord shall have the right, from time to time, to change the area, level, location
and arrangement of parking areas and other Common Area facilities and to make all rules and regulations pertaining to and necessary
for the proper operation and maintenance thereof. Landlord shall have the exclusive right at any and all times to close any portion
of the Common Areas for the purpose of making repairs, changes or additions thereto; may change the size, area or arrangement of
the Common Areas; and may enter into agreements as Landlord deems appropriate for parking and ingress or egress.

 

7.2           Parking
Policy. There will be reserved for Tenant 20 parking spaces are are exclusively reserved on a 24 hour a day basis. An
additional 25 spaces will be labeled as "Reserved for Motel Parking Only after 4:00 p.m." All parking spaces in front
of the Motel Office (as reflected on Exhibit A) will be included in the 20 parking spaces reserved exclusively for Tenant.

 

7.3           Parking
Charges. Landlord will establish a reasonable schedule of fees for all parking spaces in the Project in order to provide parking
for tenants, tourists and periodic visitors to the Project. Notwithstanding anything contained herein to the contrary, Landlord
has the right to meter the parking lot of the Project and charge an hourly fee to anyone who parks a vehicle in the lot. Landlord
reserves the right to regulate the parking at the Project to ensure that the parking lot is used on a long term basis by customers
of the Project and not tenants, employees, or the general public.

 

SECTION 8 - USE OF PREMISES.

 

8.1           Use.
Tenant shall use the Premises solely for the Permitted Uses set forth in the Fundamental Lease Provisions and not for any other
purpose. Tenant shall not use or permit the Premises to be used in violation of the laws, ordinances, regulations and requirements
of the United States, the State of Arizona, Coconino County, the City of Sedona or any subdivision or department thereof or any
other authority or agency having jurisdiction over the Premises or the Project. Tenant acknowledges other tenants at the Project
have certain exclusive uses, a list of which is attached hereto as Exhibit B. Tenant shall not sell any items which are protected
by other Tenants' exclusivity rights.

 

8.2           Prohibited
Conduct. Except by prior written consent of Landlord, Tenant shall not:

 

A.           Use
or operate any machinery that, in Landlord's opinion, is harmful to the Premises or the Project or disturbing to other tenants
in the building of which the Premises is a part; use any loud speakers, televisions, stereos, radios or other devices in a manner
so as to be heard or seen outside the Premises; or display merchandise on the exterior of the Premises either for sale or for promotional
purposes.

 

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B.           Do
or suffer to be done any act, matter or thing objectionable to the fire, casualty or liability insurance carriers whereby any insurance
now in force or hereafter to be placed on the Premises or the Project, or any part thereof, shall become void or suspended, or
whereby the same shall be rated as a more hazardous risk than at the date when Tenant receives possession of the Premises. In case
of a breach of this covenant, in addition to all other remedies of Landlord hereunder, Tenant agrees to pay to Landlord as additional
rent any and all increase or increases of premiums on insurance carried by Landlord on the Premises or the Project.

 

C.           Do
or cause to be done any act, matter or thing in violation of any federal, state, county or local law, statute, regulation, rule
or ordinance.

 

8.3           Prescribed
Conduct. At all times throughout the Lease Term, Tenant shall:

 

A.           Comply
with any and all requirements of any of the constituted public authorities and with the terms of any state or federal statute or
local ordinance or regulation applicable to Tenant or its use, safety, cleanliness or occupation of the Premises, and save Landlord
harmless from penalties, fines, costs, expenses or damages resulting from Tenant's failure to do so.

 

B.           Give
Landlord prompt written notice of any accident, fire, pest infestation, or damage occurring on or to the Premises.

 

C.           Load
and unload goods at such times in the areas and through such entrances as may be designated for "Delivery" by Landlord.
Such trailers or trucks shall not be permitted to remain parked overnight in any area of the Project, whether loaded or unloaded.
Designated fire lanes shall not be used for the loading or unloading of merchandise, parking or standing of running vehicles at
any time. The unlawful use of such fire lanes may result in the towing of the offending vehicle and subject the owner or user thereof
to all applicable fines established by the City of Sedona and/or Landlord.

 

D.           Conduct
its business in the Premises in all respects in a dignified manner and in accordance with high standards of store operation. Tenant
will not engage in any deceptive marketing or sales efforts that offend the customers of the Project, its Tenants or in any way
conduct its operations in a "discount sale" manner.

 

 

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E.           Disclose
to their customers and prospective customers truthful information about the business, the goods or services available for purchase
or sale, and the transaction itself.

 

F.           Adopt
information practices that treat customers with care. Tenant shall adhere to a policy based on fair information principles, take
appropriate measures to provide adequate enforcement, and respect consumers' preferences regarding unsolicited sales.

 

G.           Comply
with all reasonable rules and regulations of Landlord in effect at the time of the execution of this Lease or at any time or times,
and from time to time, promulgated by Landlord which Landlord, in its sole discretion, shall deem necessary in connection with
the Premises or the Project including but not limited to both the operation of Tenant's business during certain minimum days and
hours.

 

8.4           Operation
of Premises.

 

A.           Tenant
shall operate its business on the Premises during the entire Term of this Lease. With due diligence and efficiency so as to produce
the maximum Gross Receipts which may be produced by such manner of operation. Subject to inability by reason of strikes or labor
disputes or other reasons beyond Tenant's reasonable control, Tenant shall continuously and uninterruptedly conduct its business
365 days per year.

 

B.           Tenant
covenants and agrees that it will continuously and uninterruptedly from and after its initial opening for business, operate and
conduct under the provisions of this Lease, except (i) while the Premises are untenantable by reason of fire or other casualty;
or (ii) closed on account of the death of the owner of Tenant or the death of a member of such owner’s family (not to exceed
3 days); or (iii) closed for purposes of remodeling, not to exceed a cumulative of thirty (30) days during any five (5) year period.
Tenant shall fully utilize the Premises for its business and shall at all times keep and maintain upon the Premises competent personnel,
trade fixtures and inventory. To service and supply the ordinary demands and requirements of its customers.

 

C.           Tenant
shall use its best efforts to achieve maximum Gross Receipts during the Term of the Lease.

 

SECTION 9 - TENANT'S CONSTRUCTION OF IMPROVEMENTS.

 

9.1           Intentionally
Deleted.

 

9.2           Intentionally
Deleted.

 

 

    	9

    	 

     

9.3           Written
Approval. Tenant shall not make or cause to be made any alterations, additions or improvements to the Premises, without first
obtaining Landlord's written approval and consent. Tenant shall present to Landlord plans and specifications for such work at the
time approval is sought. Landlord may condition its approval upon the requirement that Tenant, or its contractor, secure and bear
the cost of a labor and materials payment bond. All alterations, improvements, additions and fixtures made or installed by Tenant
shall remain upon the Premises at the expiration or earlier termination of this Lease and shall become the property of Landlord.

 

9.4           Trade
Fixtures. Tenant shall not cut or drill into or secure any trade fixtures, apparatus or equipment of any kind to any part of
the Premises without first obtaining the written consent of Landlord, which shall not be unreasonably withheld. All furnishings,
equipment and machines installed by Tenant and that are not trade fixtures in the Premises shall remain the property of Tenant
subject to any lien provided Landlord by law and shall be removed at the expiration or earlier termination of this Lease,
or any renewal or extension thereof; provided, Tenant shall not at such time be in default under any covenant or agreement contained
in this Lease and provided further that in the event of such removal, Tenant shall promptly restore the Premises to its original
order and condition. Any such furnishings, trade fixtures, equipment and machines not removed at or prior to such termination of
this Lease shall be and become the property of Landlord.

 

SECTION 10 - TENANT OBLIGATIONS.

 

10.1        Payment
by Tenant. Tenant shall pay and discharge punctually as and when the same shall become due and payable, each and every cost,
expense and obligation of every kind and nature, foreseen or unforseen, arising out of the possession, operation, maintenance,
alteration, repair, rebuilding, use or occupancy of the Premises. Tenant shall also pay and discharge punctually, as and when the
same shall become due and payable without penalty, personal property, business, occupation and occupational license taxes,
water, sewer, electricity and telephone charges and fees.

 

10.2        Payment
by Landlord. Tenant shall not be required to pay or reimburse Landlord for (i) any local, state or federal capital levy, franchise
tax, revenue tax, income tax, or profits tax of Landlord unless and to the extent such levy, tax or imposition is in lieu of or
a substitute for any other levy, tax or imposition now or later in existence upon or with respect to the Premises which, if such
other levy, tax or impostion were in effect, would be payable by Tenant under the provisions hereof; (ii) any estate, inheritance,
devolution, succession or transfer tax which may be imposed upon or with respect to any transfer (other than taxes in connection
with a conveyance by Landlord to Tenant) of Landlord's interest in the Premises; or (iii) any lien not of record as of the Commencement
Date arising from the unilateral acts or omissions of Landlord and unrelated to a default of Tenant under this Lease.

 

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10.3       
Proof of Payment. Tenant, upon Landlord's request, shall furnish to Landlord within thirty (30) days thereafter proof of
the payment of any obligation to be paid by Tenant.

 

10.4       Personal
Property Taxes. Tenant shall be responsible for and shall pay before delinquency all taxes levied or assessed against any leasehold
interest or personal property of any kind owned or placed in, upon or about the Premises by Tenant. Tenant hereby agrees to protect
and hold harmless Landlord and the Premises from any liability for Tenant's share of any and all such taxes, assessments and charges
together with any interest, penalties or other charges thereby imposed, and from any sale or other proceedings to enforce payment
thereof, and to pay all such taxes, assessments and charges before delinquency and before same become a lien.

 

10.5       Premises
Utilities. Tenant shall be responsible for any and shall pay for all utilities used or consumed in or upon the Premises as
and when the charges shall become due and payable during the Term. Tenant shall make all appropriate applications to local utility
companies and pay all required deposits. In no event shall Landlord be liable for any interruption or failure in the supply of
any utilities to the Premises.

 

10.6       Merchants
Association. Tenant agrees that it will become and remain during the entire Term of this Lease a member of a merchants' association,
which shall consist of Landlord and the Tenants of the Project. The purpose of the association shall be the general furtherance
of the business interest of the Project as a whole, including advertising, promotion and special events calculated to the benefit
of the Project and the business of all the tenants located therein. The association shall make its own rules and regulations with
respect to such matters. Tenant's contribution to such association shall be determined by a vote of the association members. Members
shall have the ability to modify or cancel any rules and regulations established by the association by a specific majority vote
of the members. Landlord shall be noticed by mail of any upcoming advertising, promotion, or special events sponsored by the association.

 

SECTION 11 - COMMON AREA MAINTENANCE.

 

11.1 Expenses. For
the Term hereof, Tenant shall pay to Landlord, as Additional Rent, Tenant's "Proportionate Share" of: (i) all costs of
operation and maintenance of the Common Areas of the Project; (ii) all Common Area utilities; (iii) all real estate and assessment
taxes levied and assessed against the Project; (iv) all insurance coverage upon the Project and its operations; (v) all marketing
expenses for the Project and (vi) Landlord's management fee. Tenant's Proportionate Share shall be payable in equal monthly installments
at the same time rent is payable hereunder, without demand and without any deduction or set-off whatsoever. This additional Rental
shall only be payable in the months as reflected on Page 1 of this Lease.

 

 

    	11

    	 

     

Landlord shall equitably
allocate the foregoing charges among all the occupants of the Project. In making the allocation, Landlord shall reasonably evaluate
the factors that determine the amount of the costs and expenses attributable to Tenant. Tenant's Proportionate Share shall be not
less than the ratio that Tenant's total floor area bears to the total floor area of all the retail buildings (as measured by Landlord)
in the Project which are from time to time completed as of the first day of each calendar quarter.

 

A.      FOR PURPOSES
OF THIS SECTION 11.1 :

 

1.          The
cost of operation and maintenance of the common facilities includes all expenditures incurred by or on behalf of Landlord in keeping
and maintaining the foundations, exterior walls, floors and roofs of the Project, all repairs to and replacements of equipment
associated with the Project including, but not limited to, air-conditioning units and the cost of operating and maintaining the
common facilities, including without limitation, the cost of all of Landlord's gardening and landscaping, the current portion of
any assessments against the Project for any purpose, repairs, preventive maintenance, repainting including restriping of parking
lot and access ways, updating and maintenance of directory signs, rental of signs and equipment, lighting, sanitary control, cleaning,
sweeping, removal of ice, snow, trash, rubbish, garbage and other refuse, depreciation over a period of not exceeding sixty (60)
months of machinery, equipment and other assets used in the operation and maintenance of the Project, repair, maintenance or replacement
of onsite water lines, sanitary sewer lines, septic tanks, leach lines and evapotranspiration beds, storm water lines and electrical
lines and equipment serving the property, the cost of police, security and traffic control services, reasonable reserves for anticipated
expenditures, the cost and maintenance and upkeep of the public restroom facilities, and the cost of all personnel required to
supervise, implement and accomplish all of the foregoing, including but not limited to, on-site management and maintenance personnel.

 

2.          Real
Estate Taxes includes all taxes, assessments and other governmental fees or charges, general and specific, ordinary and extraordinary,
of any kind and nature whatsoever, including but not limited to, assessments for public improvements or benefits, which shall,
during the Term hereof, be assessed, levied, or imposed upon the Project or Landlord or become due or payable.

 

3.          Insurance
coverage upon the Project and its operations includes the cost of all Landlord's insurance relating to the common facilities of
the Project as a whole or the operations thereon, including, but not limited to: casualty insurance, flood insurance, rent loss
insurance, fire insurance and extended coverage, as well as general liability insurance, umbrella liability insurance, bodily injury,
public liability, property damage liability, automobile insurance, sign insurance and any other insurance carried by the Landlord
in coverage limits selected by the Landlord.

 

 

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4.          Landlord's
Management Fee is comprised of compensation and fees paid by Landlord to an independent management agent or broker for management
of the Project, or if Landlord manages the Project on its own behalf, such fees shall be stipulated to be and computed as
four percent (4%) of the gross rent received by Landlord from all Project Tenants for the fiscal year in question. In addition,
the Manager shall charge and be paid an additional fee of ten percent (10%) of the total of all Common Area Expenses to cover supervision,
administration and overhead of the Project.

 

11.2 Common Area
Expenses Estimates. At the beginning of each calendar year, Landlord shall have the right to prospectively estimate the total
amount of Common Area Expenses anticipated for such year, based on Landlord's experience and the latest available tax information,
and Landlord shall thereafter notify Tenant of the portion of estimated Common Area Expenses which Tenant shall be expected to
pay each month. Within ninety (90) days following the end of the applicable calendar year, Landlord shall furnish Tenant a statement
setting forth the amount of the actual Common Area Expenses for such year, showing in adequate detail the manner in which Tenant's
portion of Common Area Expenses has been computed and the payments made by Tenant for Common Area Expenses during such year. If
the amount collected by Landlord from Tenant for estimated Common Area Expenses exceeds the actual amount of Common Area Expenses
for such year, Landlord shall refund the excess within thirty (30) days or shall apply any credit to the next Common Area Expense
payment to be made by Tenant. If Tenant's payments of estimated Common Area Expenses are less than the total amount of actual
Common Area Expenses for such year, Tenant shall pay the deficiency within thirty (30) days.

 

SECTION 12 – MAINTENANCE AND REPAIRS
BY TENANT. (Handwritten note: Landscaping signage

 

12.1         Tenant's
Obligation. Tenant shall keep and maintain in good order, condition and repair (including any such replacement, periodic painting
and restoration as is required for that purpose) the Premises and every part thereof and any and all appurtenances thereto wherever
located, including but not limited to, the exterior and interior portion of all doors, door checks, door locks, windows, plate
glass, store front, all plumbing and sewage facilities within the Premises, all alterations, improvements and installations made
by Tenant and any repairs required to be made due to burglary or other illegal entry into the Premises. Tenant shall maintain
and bear the expense of the light fixtures and bulbs, air-conditioning unit and filters, heating unit or furnace, janitorial
services, interior pest control, and the like.

 

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12.2         Prohibited
Acts. Tenant shall not cause or permit accumulation of any debris or extraneous matter on the roof of the Premises and will
be responsible for any damage caused thereto by any acts of Tenant, its agents, servants, employees or contractors. Tenant shall
place any rubbish, broken down boxes, trash or other excess matter only in such containers as are authorized from time to time
by Landlord; keep the Premises (including all exterior surfaces and both sides of all glass) clean, orderly, sanitary and free
from objectionable odors and from insects, vermin, and other pests; and keep the outside areas and sidewalks immediately adjoining
the Premises clean and free from empty boxes, trash of any kind, ice and any other obstructions or safety hazards.

 

12.3 Rights of
Landlord. If Tenant refuses or fails to commence and complete repairs or maintenance required herein promptly and adequately,
Landlord may, but shall not be required to, make and complete the repairs or perform the maintenance. The cost of such repairs
or maintenance shall be paid immediately by Tenant to Landlord as additional rent upon demand.

 

SECTION 13 - REPAIR BY LANDLORD.

 

13.1         Repair
by Landlord. Landlord shall keep and maintain the foundation, exterior walls, floors and roof of the building in which the
Premises are located (but the same shall be included in the cost of operations and maintenance of the common facilities as defined
in Section 11), exclusive of doors, door frames, door checks, door locks, windows and window frames located in exterior building
walls. Landlord shall not, however, be required to make any such repairs when such repairs are the result of misuse or neglect
by Tenant, its agents, employees, invitees, licensees or contractors. Any repairs required to be made by reason of such Tenant
misuse or neglect shall be the responsibility of Tenant, the above provisions to the contrary notwithstanding. Except as provided
herein, Landlord shall have no obligation to alter or modify the Premises, or any part thereof, or to repair and maintain any plumbing,
heating, electrical, air-conditioning or other mechanical installation in the Premises. Under no circumstances shall Landlord be
obligated to repair, replace or maintain any plate glass or door or window glass no matter what the cause.

 

 

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13.2         Hazardous
Materials. Exclusive of Hazardous Materials normally associated with Tenant's permitted use, if any, Tenant covenants and agrees
not to use, generate, release, manage, treat, manufacture, store, or dispose of, on, under or about, or transport to or from (any
of the foregoing hereinafter a "Use") the Premises any Hazardous Materials (other than "De Minimis" amounts
(as defined below)). Tenant further covenants and agrees to pay all costs and expenses associated with enforcement, removal, remedial
or other governmental or regulatory actions, agreements or order threatened, instituted or completed pursuant to any Hazardous
Materials Laws, and all audits, tests, investigations, cleanup, reports and other such items incurred in connection with
any efforts to complete, satisfy or resolve any matters, issues or concerns, whether governmental or otherwise, arising out of
or in any way related to the Use of Hazardous Materials in any amount by Tenant, its employees, agents, invitees, subtenants, licensees,
assignees or contractors. For purposes of this Lease (1) the term "Hazardous Materials" shall include but not be limited
to asbestos, urea formaldehyde, polychlorinated biphenyls, automotive and petroleum products and byproducts (including, without
limitation, gasoline, diesel and other fuels, new, used and recycled oil, grease, brake fluid, antifreeze, and other automotive
fluids installed in or recovered from service vehicles or otherwise, and any other fuel additive, derivative, lubricant or byproduct
generated, stored or used in Tenant's business operation or otherwise occurring), pesticides, radioactive materials, hazardous
wastes, toxic substances and any other related or dangerous toxic or hazardous chemical, material or substance defined as hazardous
or regulated or as a pollutant or contaminant in, or the use of or exposure to which is prohibited, limited, governed or regulated
by, any Hazardous Materials Laws; (ii) the term "De Minimis" amounts shall mean, with respect to any given level of Hazardous
Materials, that such level or quantity of Hazardous Materials in any form or combination of forms (a) does not constitute a violation
of any Hazardous Materials Laws; and (b) is customarily employed in, or associated with, similar retail projects in Coconino County,
Arizona; and (iii) the term "Hazardous Materials Laws" shall mean any federal, state, county, municipal, local or other
statute, law, ordinance or regulation now or hereafter enacted which may relate or legislate the protection of human health or
the environment, including but not limited to the Comprehensive Environment Response, Compensation and Liability Act of 1980, 42
U.S.C. Section 9601, et seq.; the Hazardous Materials Transportation Act, 49 U.S.C. Section 1801, et seq.; the Resource
Conservation and Recovery Act, 42 U.S.C. Section 6901, et seq.; the Federal Water Pollution Control Act, 33 U.S.C. Section
1251, et sea.; the Toxic Substances Control Act of 1976, 15 U.S.C. Section 2601, et sea.; Ariz. Rev. Stat. Ann. Title
49 (The "Arizona Environmental Quality Act of 1986"); and any rules, regulations or guidelines adopted or promulgated
pursuant to any of the foregoing as they may be adopted, amended or replaced from time to time.

 

SECTION 14 - LIENS.

 

14.1         No
Liens. Tenant shall have no authority to do any act or make any contract which may create or be the basis for any lien, mortgage
or other encumbrance upon any interest of Landlord in the Premises or which would cause any document to be recorded against the
Premises or the Project. Should Tenant cause any construction, alterations, rebuildings, restorations, replacements, changes, additions,
improvements or repairs to be made on the Premises, or cause any labor to be performed or material to be furnished thereon, therein
or thereto, neither Landlord nor the Premises shall under any circumstances be liable for the payment of any expense incurred or
for the value of any work done or material furnished, and Tenant shall be solely and wholly responsible to contractors, laborers
and materialmen for performing such labor and furnishing such material.

 

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14.2         Tenant's
Obligations  . The initial and any subsequent alterations or improvements made by Tenant to the Premises must be paid for by
Tenant when such alterations or improvements are made. Nothing in this Lease shall be construed to authorize Tenant, or any person
dealing with or under Tenant, to charge the rents of the Premises, or the property and buildings of which the Premises form a part,
or the interest of Landlord in the state of the Premises, with a mechanics' lien or encumbrance of any kind, and under no circumstances
shall Tenant be construed to be the agent, employee or representative of the Landlord in the making of any such improvements or
alterations to the Premises.

 

14.3         Removal
of Liens. If, because of any act or omission (or alleged act or omission) of Tenant, any mechanic's, materialman's, or other
lien, charge or order for the payment of money shall be filed or recorded against the Premises or against Landlord (whether or
not such lien, charge or order is valid or enforceable as such), Tenant shall, at its own expense, either cause the same to be
discharged of record pursuant to A.R.S. §33-1004,or otherwise cause such discharge, within ten (10) days after Tenant shall
have received notice of the filing thereof, or Tenant may, within such period, furnish to Landlord a bond satisfactory to Landlord
against such lien, charge or order, in which case Tenant shall have the right in good faith to contest the validity or amount thereof.

 

SECTION 15 - INSURANCE.

 

15.1         Project
Insurance. Landlord bears the risk of and may insure as a Common Area Expense as practical or as required by Landlord's Lender,
the operation of the Project as a whole or the common areas thereof. Such insurance may include, but is not limited to, general
liability, umbrella excess liability, bodily injury, public liability, property damage liability, fire and extended coverage in
amounts not less than eighty percent (80%) of the replacement cost of the Project, sign insurance and the like in coverage limits
selected by Landlord. Tenant shall pay to Landlord its "Proportionate Share" of such insurance as provided in Section
11 above.

 

15.2       
Tenant's Property. Tenant agrees that all property owned by it in, on, or about the Premises shall be at the sole risk and
hazard of the Tenant. Landlord shall not be liable or responsible for any loss or damage to Tenant, or anyone claiming under
or through Tenant, or otherwise, whether caused by or resulting from a peril required to be insured hereunder, or from water,
gas leakage, plumbing, electricity or electrical apparatus, pipe or apparatus of any kind, the elements or other similar or dissimilar
causes, and whether or not originating in the Premises or elsewhere, irrespective of whether or not Landlord may be deemed to have
been negligent with respect thereto, and provided such damage or loss is not the result of any intentional and wrongful act of
Landlord. Tenant shall require all policies of risk insurance carried by it on its property in the Premises to contain or be endorsed
with the provision in and by which the insurer designated therein shall waive its right of subrogation against Landlord.

 

  

    	16

    	 

     

  

 

15.3        
Tenant's Operations. All operations conducted by Tenant shall be at Tenant's sole risk. In addition, Tenant shall procure
insurance for its operations as follows:

 

A.           Tenant
shall keep in force at its own expense public liability insurance and comprehensive general liability insurance, including contractual
liability insurance sufficient to cover all phases and aspects of the operation and conduct of its business, with minimum limits
of $2,000,000.00 on account of bodily injuries to or death of one person and $3,000,000.00 on account of bodily injuries to or
death of more than one person as a result of any one accident or disaster, and $2,000,000.00 as a result of damage to property.

 

B.           Tenant
shall keep and maintain in force during the Term hereof, plate glass insurance upon windows and doors in the Premises as required
by Landlord unless Landlord maintains such insurance on behalf of all Tenants and treats it as a Common Area Expense.

 

15.4         Certificate
of Insurance. Tenant shall provide annually to Landlord a Certificate of Insurance listing Landlord as an additional named
insured under the Tenant's policy of insurance.

 

15.5.        Insurance
Companies. The policies affording the insurance required by this Lease shall be with companies (rated A-[minus] VII
or better, A. M. Best's Key Rating Guide) authorized to do business in the State of Arizona and shall be in a form reasonably satisfactory
to Landlord, shall provide replacement cost coverage, shall name Landlord as an additional insured, and shall provide for payment
of loss thereunder to Landlord and Tenant as their interests may appear. The policies or certificates evidencing such insurance
shall be delivered to Landlord on or before the Commencement Date and renewals thereof shall be delivered to Landlord at least
thirty (30) days prior to the expiration dates of the respective policies. Alternatively, the insurance required by this Section
15 may be provided under a blanket policy to the Tenant's existing insurance policy.

 

15.6.       Failure
to Procure Insurance In the event Tenant shall fail to procure insurance required under this Lease or fail to maintain the
same in force continuously during the Term, or any extension thereof, Landlord shall be entitled to procure such insurance and
Tenant shall, upon demand, immediately reimburse Landlord for such premium expense or Landlord may declare Tenant in default under
this Lease.

 

 

    	17

    	 

     

15.7         Repair.
In the event of loss under any such policy or policies, Tenant shall promptly proceed with the repair and restoration of the
damaged or destroyed improvements in accordance with Section 16 of this Lease. The insurance proceeds, if less than $20,000.00,
shall be paid to Tenant for application to such repair, restoration or remediation, so long as (a) Tenant is not then in default
under this Lease, and (b) Tenant expressly covenants in
writing with Landlord to expend such funds for the repair, restoration or remediation of the Premises and the improvements therein,
and to furnish Landlord with documentation evidencing such expenditure of funds for work and improvements incorporated in the Premises
within thirty (30) days following completion of such repair, restoration or remediation. If the insurance proceeds exceed $20,000.00,
the same shall be paid to and held in trust by the Landlord pursuant to Section 16 of this Lease. All insurance proceeds described
in this Section 15.7 shall be paid upon architects' certificates and contractors', subcontractors' and materialmen's waivers of
lien for the cost and expense of repair, restoration or remediation of the damage. If at any time such insurance proceeds shall
be insufficient to pay fully the cost of completion of such repair, restoration or remediation, Tenant shall upon demand
of Landlord pay a sufficient portion of such cost so that it shall appear to the reasonable satisfaction of Landlord that the amount
of insurance money in the hands of Tenant or Landlord, as applicable, shall at all times be sufficient to pay for the completion
of the repairs, restoration or remediation free and clear of all liens. Upon the completion of the repairs, restoration or remediation,
free and clear of all liens, any surplus of insurance monies shall be paid to Tenant, provided that Tenant is not then in default
hereunder. In the event that this Lease shall have been terminated for any default of Tenant under any of the terms and provisions
contained in this Lease, all proceeds of insurance in the hands of Tenant or Landlord and all claims against insurers shall be
and become the absolute property of Landlord.

 

SECTION 16 - DAMAGE OR DESTRUCTION.

 

16.1         Tenant
Obligations. In the event of damage to or destruction of any of the improvements on the Premises by fire or other casualty,
Tenant shall give Landlord immediate notice thereof and shall, at Tenant's own expense and whether or not the insurance proceeds
are sufficient for the purpose, promptly commence and thereafter diligently pursue completion of the repair, restoration or rebuilding
of the same so that upon completion of such repairs, restoration or rebuilding, the value and rental value of the improvements
shall be substantially equal to the value and rental value thereof immediately prior to the occurrence of such fire or other casualty.
Tenant hereby expressly waives any statutory right to terminate this Lease in the event of damage or destruction of the Premises
or all or any portion of the buildings or improvements thereon.

 

16.2       
Lease Termination. Notwithstanding anything to the contrary contained herein, if the Premises should be rendered untenantable
by fire or other casualty during the last two (2) years of the Term to the extent of fifty percent (50%) or more of the replacement
cost of the Premises, Tenant shall have the option to terminate this Lease by notice to Landlord within sixty (60) days after the
occurrence of such damage or destruction. Upon termination, this Lease and the Term hereof shall cease and come to an end as of
the effective date of such notice (which shall be not less than thirty (30) nor more than ninety (90) days after the notice and
shall be specified in the notice). Any unearned rent or other charges shall be apportioned as of the effective date and
Tenant shall assign to Landlord all of its rights to the insurance proceeds arising out of damage or destruction to the improvements
and shall pay Landlord (when the information is ascertained) the difference between the value of the property damaged or destroyed,
prior to the damage or destruction, and the amount, if any, of the insurance proceeds.

  

    	18

    	 

     

 

SECTION 17 - EASEMENTS.

 

Landlord expressly
reserves all rights in and with respect to the use of the Premises as provided herein, including (without in any
way limiting the generality of the foregoing) the rights of Landlord to establish Common Areas and grant parking easements to others
and to enter upon the Premises and give easements to others for the purpose of installing, using, maintaining, renewing and replacing
such overhead or underground water, gas, sewer, and other pipe lines, and telephone, electric and power lines, cables and conduits
as Landlord may deem desirable in connection with the development or use of the other property in the Project or any other property
in the neighborhood thereof, whether owned by Landlord or not.

 

SECTION 18 - INDEMNIFICATION.

 

18.1.      
By Tenant. Excepting any responsibility allocated to Landlord by reason of its negligence (excluding from this exception,
however, any responsibility allocated to Landlord by reason of its failure to enforce the terms of this Lease), Tenant shall indemnify,
defend and hold Landlord harmless for, from and against all liabilities, obligations, claims, suits, damages, penalties, causes
of action, costs and expenses (including without limitation, reasonable attorneys' fees and expenses) imposed upon or asserted
against Landlord by reason of the acts or omissions of Tenant, its agents, employees, contractors, suppliers, licensees, invitees
and guests and/or the occurrence of any of the following during the Term: (i) any use, nonuse or condition of the Premises or any
part thereof; (ii) any accident, injury to or death of persons (including workmen) or loss of or damage to property occurring on
or about the Premises or any part thereof; (iii) any failure on the part of Tenant to perform or comply with any of the provisions
of this Lease; (iv) performance of any labor or services or the furnishings of any materials or other property in respect of the
Premises or any part thereof (excluding any such matters performed or furnished by or at the request of Landlord and unrelated
to a default of Tenant under this Lease); or (v) any failure on the part of Tenant to clean up and/or dispose of any Hazardous
Materials, as described in Section 13.2 above, in accordance with the requirements of this Lease and applicable law. In the event
Landlord should be made a defendant in any action, suit or proceeding brought by reason of any such occurrence, Tenant shall, at
its own expense, resist and defend such action, suit or proceeding or cause the same to be resisted and defended by legal counsel
designated by Tenant but approved by Landlord. If any such action, suit or proceeding should result in a final judgment against
Landlord, Tenant shall promptly satisfy and discharge such judgment or shall cause such judgment to be promptly satisfied and discharged.
The obligations of Tenant under this Section 18 arising by reason of any such occurrence taking place while this Lease is in effect
shall survive the termination of this Lease.

 

 

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18.2        By
Landlord. Landlord shall save, hold harmless and indemnify Tenant for, from and against all liabilities, obligations, claims,
suits, damages, penalties, causes of action, costs and expenses (including, without limitation, reasonable attorneys' fees and
expenses) imposed upon or asserted against Tenant by reason of the negligence of Landlord or its agents, contractors, servants
or employees.

 

18.3       
Waiver of Claims. Landlord and its agents, contractors, servants or employees and shall not be liable for, and Tenant hereby
releases all claims for, damage to persons and property sustained by Tenant or any person claiming through Tenant resulting from
any theft, fire, accident, occurrence or condition in, on or about the Premises or building of which they are a part, including,
but not limited to, such claims for damage resulting from (i) any defect in or failure of plumbing, heating or air-conditioning
equipment, electric wiring or installation thereof, water pipes, stairs, railings or walks; (ii) any equipment or appurtenances
needing repair; (iii) the bursting, leaking or running of any tank, wash stand, water closet, waste pipe, drain or any other pipe
or tank in or about the Premises; (iv) the backing up of any sewer pipe or down spout; (v) the escape of steam or
hot water; (vi) water, snow or ice being upon or coming through the roof or any other place upon or near the Premises or otherwise;
(vii) the falling of any fixture, plaster or stucco; and (viii) broken glass.

 

SECTION 19 - ASSIGNMENT AND SUBLETTING.

 

19.1         Landlord
Consent. Tenant shall not transfer or assign this Lease or any interest in this Lease or sublet the Premises or any portion
thereof without first obtaining the written consent of Landlord, which consent may be given or withheld in Landlord's sole discretion;
and any attempted transfer, assignment or subletting, including any involuntary transfers or assignments by operation of law, without
such consent shall be void and confer no rights upon any third person, and at the option of Landlord, shall cause a termination
of this Lease, in which event such third person shall occupy the Premises as a tenant at sufferance. The acceptance of any rent
payments by Landlord from any such alleged assignee shall not constitute approval of the assignment or subletting of this Lease
by Landlord. No transfer, assignment or subletting shall relieve Tenant of its liability for the full performance of all of the
provisions, agreements, covenants and conditions of this Lease. A consent by Landlord to one transfer, assignment or subletting
shall not operate as a waiver of this Section as to any future transfer, assignment or subletting, and this Section 19 shall apply
to any transferee, assignee or subtenant.

 

    	20

    	 

     

19.2         In
Writing. Each transfer, assignment, and subletting to which there has been consent shall be by an instrument in writing in
form satisfactory to Landlord, and shall be executed by the transferor, assignor or sublessor; and the transferee, assignee,
or sublessee shall agree in writing for the benefit of Landlord to assume, to be bound by, and to perform the provisions, covenants
and conditions of this Lease to be done, kept and performed by Tenant. One executed copy of such written instrument shall be delivered
to Landlord. A consent to any transfer, assignment or subletting shall not constitute waiver or discharge of the provisions of
this paragraph with respect to a subsequent transfer, assignment or subletting. The acceptance of rent from any other person
shall not be deemed to be a waiver of any of the provisions of this Lease or a consent to the transfer, assignment or subletting
of the Premises.

 

19.3         Transfer
Limitation. If Tenant (including any entity later becoming Tenant) is a corporation, unincorporated association, limited liability
company or a partnership, the transfer (other than pursuant to the laws of devise and descent upon the death of a shareholder,
partner or owner), assignment or hypothecation of any stock or interest in such corporation, association, company or partnership
in the aggregate in excess of twenty percent (20%) from the time such entity becomes a Tenant hereunder, shall be deemed an assignment
within the meaning and provisions of this Section 19. The foregoing sentence shall not apply to a corporation of which the
capital stock is publicly traded on a recognized national stock exchange.

 

19.4        
Deleted.

 

SECTION 20 - SUBJECT TO MASTER LEASE.

 

Tenant acknowledges
that this Lease is subordinate to a Master Lease of the Project among CANYON PORTAL PROPERTIES, L.L.C. and ATHERTON VENTURES, L.L.C.
as Landlord and CANYON PORTAL II, L.L.C. , an Arizona limited liability company as Tenant. A Memorandum of Lease is recorded in
Coconino County as Instrument No. 98-21399 on July 2, 1998. An Amendment to Memorandum of Lease is recorded in Coconino County
as Instrument No. 3288292 on October 14, 2004.

 

SECTION 21 - DEFAULTS BY TENANT.

 

21.1         Event
of Default. Each of the following occurrences shall be an Event of Default hereunder:

 

A.           If
Tenant fails to pay any Rent, Additional Charges or any sum due hereunder promptly when due and such failure continues for three
(3) days after the date such payment was due.

 

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B.           If
Tenant defaults or breaches any of the other (non-monetary) covenants, agreements, conditions or undertakings herein to be kept,
observed and performed by Tenant and such default continues for ten (10) days after notice thereof in writing to Tenant.

 

C.           TENANT
ACKNOWLEDGES THAT ANY VIOLATION OF ANY OF THE PRESCRIBED CONDUCT AS SET FORTH IN PARAGRAPH 8.3 IS A MATERIAL BREACH OF THIS LEASE.
IF IN ANY TWELVE (12) MONTH PERIOD THERE ARE MORE THAN TWO (2) NOTICES OF VIOLATION OF PARAGRAPH 8.3 SENT BY LANDLORD TO TENANT,
THEN LANDLORD SHALL HAVE THE RIGHT TO TERMINATE THIS LEASE WITHOUT NOTICE.

 

TENANT'S INITIALS: _______

 

D.           If
Tenant files any petition under any chapter or section of the Federal Bankruptcy Code or any similar law, state or federal, whether
now or hereafter existing, or shall file an answer admitting insolvency or inability to pay its debts.

 

E.           If
Tenant fails to obtain a stay of any involuntary proceedings under any chapter or section of the Federal Bankruptcy Code within
sixty (60) days after the institution thereof.

 

F.           If
a trustee or receiver is appointed for Tenant or for a major portion of its property or for any portion of the Premises and such
appointment is not vacated and dismissed within sixty (60) days thereafter and in any event prior to any action adverse to the
interest of Tenant or Landlord having been taken by such trustee or receiver.

 

G.           If
any court takes jurisdiction of a major portion of the property of Tenant or any part of the Premises in any involuntary proceeding
for dissolution, liquidation or winding up of Tenant and such jurisdiction is not relinquished or vacated within sixty (60) days.

 

H.           If
Tenant makes an assignment for the benefit of its creditors.

 

I.           If
Tenant fails to occupy and operate the business in the Premises for three (3) consecutive days (except as otherwise allowed under
Section 8.4).

 

21.2         Re-Enter
of Premises. Upon the occurrence of any such Event(s) of Default and at any time thereafter, Landlord shall have the right,
at its election, to reenter the Premises, or any part thereof, either with or without process of law, and to expel, remove and
evict Tenant and all persons occupying or upon the same under Tenant, using such force as may be lawful and necessary in so doing,
and to possess the Premises and enjoy the same as in their former estate and to take full possession of and control over the Premises
and the buildings and improvements thereon and to have, hold and enjoy the same and to receive all rental income of and from the
same. No reentry by Landlord shall be deemed an acceptance of a surrender of this Lease, nor shall it absolve or discharge Tenant
from any liability under this Lease. Upon such reentry, all rights of Tenant to occupy or possess the Premises shall cease and
terminate.

 

 

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21.3       
Lease Termination. Upon the occurrence of any such Event(s) of Default and at any time thereafter, Landlord shall have the
right, at its election, with or without reentry as provided in Section 21.2, to give written notice to Tenant stating that this
Lease shall terminate on the date specified by such notice, and upon the date specified in such notice this Lease and the Term
hereby demised and all rights of Tenant hereunder shall terminate. Upon such termination, Tenant shall quit and peacefully surrender
to Landlord the Premises and the buildings and improvements then situated thereon.

 

21.4      
Relettinq. At any time and from time to time after such reentry, Landlord may relet the Premises and the buildings and improvements
thereon, or any part thereof, in the name of Landlord or otherwise, for such term or terms (which may be greater or less than the
period which would otherwise have constituted the balance of the Term of this Lease), and on such conditions (which may include
concessions or free rental) as Landlord, in its reasonable discretion, may determine and may collect and receive the rental therefore.
However, in no event shall Landlord be under any obligation to relet the Premises and the buildings and improvements thereon, or
any part thereof, and Landlord shall in no way be responsible or liable for any failure to relet or for any failure to collect
any rental due upon any such reletting. Even though it may relet the Premises, Landlord shall have the right thereafter to terminate
this Lease and all of the rights of Tenant in or to the Premises. Nothing contained in the foregoing shall be deemed a waiver
or relinquishment by Tenant of any duty imposed by law on Landlord to mitigate its damages.

 

21.5      
Survival of Liability. Unless Landlord shall have notified Tenant in writing that it has elected to terminate this Lease,
no such reentry or action in lawful detainer or otherwise to obtain possession of the Premises shall relieve Tenant of its liability
and obligations under this Lease; and all such liability and obligations shall survive any such reentry. In the event of any such
reentry, whether or not the Premises and the buildings and improvement's thereon, or any part thereof, shall have been relet,
Tenant shall pay to Landlord the entire rental and all other charges required to be paid by Tenant up to the time of such reentry
of this Lease, and thereafter Tenant, until the end of what would have been the Term of this Lease in the absence of such reentry,
shall be liable to Landlord, and shall pay to Landlord, as damages for Tenant's default:

 

 

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A.           The
amount of Minimum Annual Base Rental and additional charges which would be payable under this Lease by Tenant if this Lease were
still in effect, less

 

B.            The
net proceeds of any reletting, after deducting all of Landlord's expenses in connection with such reletting, including without
limitation all repossession costs, brokerage commissions, legal expenses, attorneys' fees, alteration costs and expenses of preparation
for such reletting.

 

Tenant shall be liable
for and pay such damages to Landlord on a monthly basis on the first day of each month and Landlord shall be entitled to recover
from Tenant monthly as the same shall arise. The excess, if any, in any month or months, of the net proceeds described in subparagraph
(B) above actually received by Landlord over the Minimum Annual Base Rental and Additional Charges described in subparagraph (A)
above shall belong to Landlord, provided that such excess shall be credited and applied against Tenant's future obligations arising
under this Section 21.5 as the same become due and payable by Tenant hereunder, and that Tenant shall remain liable for future
deficiencies, as applicable. Notwithstanding any such reentry without termination, Landlord may at any time thereafter, by written
notice to Tenant, elect to terminate this Lease for Tenant's previous breach.

 

21.6        
Cumulative Remedies. Each right and remedy of Landlord provided for in this Lease shall be cumulative and in addition to
every other right or remedy provided for in this Lease or now or hereafter existing at law or in equity or by statute or otherwise;
and the exercise or beginning of the exercise by Landlord of any one or more of such rights or remedies shall not preclude the
simultaneous or later exercise by Landlord of any or all other rights or remedies provided for in this Lease now or hereafter existing
at law or in equity or by statute or otherwise.

 

21.7        
Sublessee Defaults. Any violation of any covenant or provision of this Lease, whether by act or omission, by any sublessee
or any other persons occupying any portion of the Premises under the rights of Tenant shall be deemed a violation of such provision
by Tenant and a default under this Lease. Any such violation shall not be deemed to be a default hereunder if and so long as Tenant
in good faith and at its own expense takes and diligently pursues any and all steps it is entitled to take and which steps if completed
will cure said default.

 

21.8        
Repetitive Rent Payment Defaults. NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH 21.1 HEREOF TO THE CONTRARY, IF IN ANY ONE
(1) PERIOD OF TWELVE (12) CONSECUTIVE MONTHS, TENANT SHALL HAVE BEEN IN DEFAULT IN THE PAYMENT OF RENT HEREIN AT LEAST THREE (3)
TIMES AND LANDLORD, BECAUSE OF SUCH DEFAULTS, SHALL HAVE SERVED UPON TENANT WITHIN SUCH TWELVE (12) MONTH PERIOD THREE (3) OR MORE
NOTICES OF LATE PAYMENT, THEN THE FOURTH DEFAULT SHALL BE DEEMED TO BE A NONCURABLE DEFAULT AND LANDLORD SHALL BE ENTITLED TO IMMEDIATE
POSSESSION OF THE PREMISES.

 

 

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21.9        
Cure Period. Notwithstanding any other provision of this Section, Landlord agrees that if the default complained of, other
than for the payment of monies, is of such a nature that the same cannot be cured within the twenty (20) day period for curing
as specified in the written notice relating thereto, then such default shall be deemed to be cured if Tenant within such period
of twenty (20) days shall have commenced thereof and shall continue thereafter with all due diligence to effect such cure and does
so complete the same with the use of such diligence as aforesaid.

 

21.10       Late
Charges. A late charge in the amount of ten percent (10%) of the delinquent payment shall be assessed to any payment required
to be made by Tenant to Landlord under the terms of this Lease not received by Landlord within three (3) days after its due date
(regardless of whether Tenant has been given notice of such failure of payment). If Tenant tenders to Landlord a check that is
returned marked "NSF" or its equivalent, Tenant shall pay Landlord a payment in the amount of twenty percent (20%) of
the amount of such non-negotiable check. Tenant's failure to pay any such late charge within three (3) days after Landlord's written
demand therefor shall constitute an Event of Default hereunder. In addition to the payments set forth in the preceding two sentences,
Tenant shall pay Landlord interest at the rate of eighteen percent (18%) per annum from the date any payment is due until the date
such payment is actually received by Landlord.

 

SECTION 22 - CONDEMNATION.

 

If title
to all or any portion of the Premises is taken by a public or quasi-public authority under any statute or by right of eminent domain
of any governmental body, whether such loss or damage results from condemnation of part or all of the Premises, Tenant shall not
be entitled to participate or receive any part of the damages or award except where the same shall provide for Tenant's moving
or other reimbursable expenses, the portion thereof allocated to the taking of Tenant's trade fixtures, equipment and personal
property or to a loss of business by Tenant. Should any power of eminent domain be exercised after Tenant is in possession, such
exercise shall not void or impair this Lease unless the amount of the Premises so taken substantially and materially impairs the
usefulness of the Premises for the purposes for which they are leased in which case, either party may cancel this Lease by notice
to the other within sixty (60) days after such possession. Should only a portion of the Premises be taken and the Premises continue
to be reasonably suitable for Tenant's use, the rent shall be reduced from the date of such possession in direct proportion to
the reduction in the square footage of the Premises.

 

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SECTION 23 - TENANT'S WAIVER OF STATUTORY RIGHTS.

 

In the event of any
termination of the Term (or any repossession of the Premises), Tenant so far as permitted by law, waives (i) any notice of reentry
or of the institution of legal proceedings to that end; and (ii) the benefits of any laws now or hereafter in force exempting property
from liability for rent or for debt.

 

SECTION 24 - WAIVER OF PERFORMANCE.

 

No failure by Landlord
or Tenant to insist upon the strict performance of any term or condition hereof or to exercise any right, power or remedy consequent
upon a breach thereof and no submission by Tenant or acceptance by Landlord of full or partial rent during the continuance of any
such breach shall constitute a waiver of any such breach or of any such term. No waiver of any breach shall affect or alter this
Lease (which shall continue in full force and effect), or the respective rights of Landlord or Tenant with respect to any other
then-existing or subsequent breach.

 

SECTION 25 - REMEDIES CUMULATIVE.

 

Each right, power
and remedy provided for in this Lease now or hereafter existing at law, in equity or otherwise shall be cumulative and concurrent
and shall be in addition to every other right, power or remedy provided for in this Lease now or hereafter existing at law, in
equity or otherwise; and the exercise or beginning of the exercise of any one or more of the rights, powers or remedies provided
for in this Lease shall not preclude the simultaneous or later exercise of any or all such other rights, powers or remedies.

 

SECTION 26 - CONVEYANCE BY LANDLORD.

 

In the event Landlord
or any successor Landlord shall convey or otherwise dispose of the Premises, it shall thereupon be released from all liabilities
and obligations imposed upon Landlord under this Lease (except those accruing prior to such conveyance or other disposition) and
such liabilities and obligations shall be binding solely on the then owner of the Premises.

 

SECTION 27 - NO PERSONAL LIABILITY TO LANDLORD.

 

Tenant shall look
solely to Landlord's interest in the Premises for the satisfaction of any judgment or decree requiring the payment of money by
Landlord based upon any default under this Lease, and no other property or assets of Landlord, or any partner or member of, or
shareholder in, Landlord, shall be subject to levy, execution or other enforcement procedures for satisfaction of any such judgment
or decree.

 

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SECTION 28 - ATTORNEYS' FEES.

 

In the event Landlord
retains an attorney to enforce its rights under this Lease or to bring suit for possession of the Premises, for the recovery of
any sum due hereunder, or for any other relief against Tenant, declaratory or otherwise, arising out of a breach of any term of
this Lease, or in the event Tenant should bring any action for any relief against Landlord, declaratory or otherwise, arising out
of this Lease, the prevailing party shall be entitled to receive from the other party reasonable attorneys' fees and reasonable
costs and expenses, which shall be deemed to have accrued due to the commencement of such action and shall be enforceable whether
or not such action is prosecuted to judgment.

 

SECTION 29 - PROVISIONS SUBJECT TO APPLICABLE LAW.

 

All rights, powers
and remedies provided herein shall be exercised only to the extent that the exercise thereof shall not violate any applicable law
and are intended to be limited to the extent necessary so that they shall not render this Lease invalid or unenforceable under
any applicable law. If any term of this Lease shall be held to be invalid, illegal or unenforceable, the validity of the other
terms of this Lease shall in no way be affected thereby.

 

SECTION 30 - RIGHT TO CURE TENANT'S DEFAULTS.

 

In the event Tenant
shall breach any term, covenant or provision of this Lease, Landlord may at any time, without notice, cure such breach for the
account and at the expense of Tenant. If Landlord at any time, by reason of such breach, is compelled to pay or elects to pay any
sum of money or to do any act that will require the payment of any sum of money, or is compelled to incur any expense, including
reasonable attorneys' fees, incurred in instituting, prosecuting or defending any actions or proceedings to enforce Landlord's
rights under this Lease or otherwise, the sum or sums so paid by Landlord, with all interest, costs and damages, shall be deemed
to be Additional Charges and shall be paid by Tenant to Landlord on the first day of the month following the incurring of such
expenses of the payment of such sums and shall include interest at the rate of eighteen percent (18%) per annum from the date Landlord
makes a payment until Tenant pays such Additional Charges in full.

 

SECTION 31 - NOTICES.

 

Any notice to be given
by Landlord or Tenant shall be given in writing and delivered in person or by overnight mail service to Landlord or Tenant, forwarded
by certified or registered mail, postage prepaid, or sent via facsimile transmission, to the address indicated in the Fundamental
Lease Provisions, unless the party giving any such notice has been notified, in writing, of a change of address. Any such notice
shall be deemed effective (a) upon receipt or refusal to accept delivery, if personally delivered; (b) on the next business day
following delivery to the overnight courier; (c) in the case of certified mailing, on the date of actual delivery as shown by the
addressee's receipt or upon the expiration of three (3) business days following the date of mailing, whichever occurs first; or
(d) in the case of facsimile transmission, upon receipt (a written confirmation of successful transmission from the transmitting
facsimile machine being prima facie evidence of such receipt).

 

 

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SECTION 32 - SIGNS.

 

Tenant shall not place,
alter, exhibit, inscribe, paint or affix any sign, awning, canopy, advertisement, notice or other lettering on any part of the
outside of the Premises, or of the building of which the Premises is a part, or inside the Premises if visible from the outside,
without first obtaining Landlord's written approval thereof, which shall not be unreasonably withheld, and if so approved, Tenant
shall maintain the same in good condition and repair. All signs shall comply with applicable ordinances or other governmental restrictions
and with all applicable rules and regulations then in force or as may be put in force and effect from time to time by any governmental
authority or by Landlord.

 

SECTION 33 - LANDLORD'S INSPECTIONS.

 

33.1         Inspection.
 Landlord reserves the right to, at all reasonable times, by itself or by its duly authorized agents, employees and contractors,
and without notice to go upon and inspect the Premises and every part thereof, to enforce or carry out the provisions of this Lease,
to make, at its option, repairs, installations, alterations, improvements and additions to the Premises or the building of which
the Premises are a part, to perform any defaulted obligation of Tenant or for any other proper purposes. Landlord also reserves
the right to install or place upon or affix to the roof and exterior walls of the Premises: equipment, signs, displays, antennae
and any other object or structure of any kind, provided the same shall not interfere with Tenant's occupancy or materially impair
the structural integrity of the building of which the Premises are a part.

 

33.2         Presenting
for Sale or Lease.      Landlord hereby reserves the right during usual business hours to enter
the Premises and to show the same for purposes of sale, lease or mortgage, and during the last six (6) months of the term of this
Lease, or the extension thereof, to exhibit the same to any prospective tenant, and to display appropriate signage for such sale
or lease. Prospective purchasers or tenants authorized by Landlord may inspect the Premises during reasonable hours at any time.

 

 

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SECTION 34 - ESTOPPEL CERTIFICATE.

 

Tenant will execute,
acknowledge and deliver to Landlord, within three (3) days following request therefor, a certificate certifying (a) that this Lease
is unmodified and in full force (or, if there have been modifications, that the Lease is in full force and effect, as modified,
and stating the modifications); (b) the dates, if any, to which rent, Additional Charges and other sums payable hereunder have
been paid; (c) that no notice has been received by Tenant of any default which has not been cured, except as to defaults specified
in such certificate; and (d) this Lease is and shall be subordinate to any existing or future deed of trust, mortgage or security
agreement placed upon the Premises or the Project by the Landlord or owner of the Property. Any claim of Tenant in contradiction
of any of the foregoing matters must be set forth with specificity in the certificate. Any such certificate may be relied upon
by any prospective purchaser or encumbrancer of the Premises or any part thereof. Tenant's failure to deliver such certificate
within the time permitted hereby shall be conclusive upon Tenant that this Lease is in full force and effect, except to the extent
any modification has been represented by Landlord, and there are no uncured defaults in Landlord's performance, and that not more
than one month's rent has been paid in advance. In addition, at Landlord's option, after notice to Tenant and expiration of applicable
grace period under this Lease, such failure of Tenant to deliver such certificate shall constitute an Event of Default. Tenant
acknowledges and agrees that the promise to issue such statements pursuant hereto are a material consideration inducing Landlord
to enter into this Lease and that the breach of such promise shall be deemed a material breach of this Lease.

 

SECTION 35 - WAIVER OF TRIAL BY JURY.

 

TENANT HEREBY WAIVES
ALL RIGHTS TO TRIAL BY JURY IN ANY CLAIM, ACTION, PROCEEDING OR COUNTERCLAIM BY EITHER LANDLORD OR TENANT AGAINST EACH OTHER ON
ANY MATTERS ARISING OUT OF OR IN ANY WAY CONNECTED WITH THIS LEASE, THE RELATIONSHIP OF LANDLORD AND TENANT, AND/OR TENANT'S USE
OR OCCUPANCY OF THE LEASED PREMISES. TENANT AGREES THAT EXCLUSIVE JURISDICTION FOR ALL LEGAL ACTIONS SHALL BE COCONINO COUNTY SUPERIOR
COURT.

 

SECTION 36 - RECORDING.

 

Neither this Lease
nor a memorandum thereof, may be recorded, or otherwise made public, by any means, without the express written consent of Landlord.
Any such recording or publication without such consent, shall, at Landlord's option, cause this Lease and all rights of Tenant
hereunder, to be immediately forfeited and of no further force and effect, provided, however, that Landlord shall have the
right to such action against Tenant, for damages resulting from such recording, as Landlord shall be entitled to by law.

 

 

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SECTION 37 - SUBORDINATION.

 

This Lease is hereby
declared to be subject and subordinate to the lien of any present or future encumbrance or encumbrances upon the Premises or the
Project, irrespective of the time of execution or the time of recording of any such encumbrance or encumbrances. Landlord shall
use its good faith efforts to obtain for Tenant an attornment and non-disturbance agreement from any lender which has a lien on
the Premises. This subordination is subject to the right of Tenant upon a foreclosure or other action taken under any mortgage
by the holders thereof to have this Lease and the rights of Tenant hereunder not be disturbed but to continue in full force and
effect so long as Tenant shall not be in default hereunder. The word "encumbrance" as used herein includes mortgages,
deeds of trust or other similar instruments, and modifications, extensions, renewals and replacements thereof, and any and all
advances thereunder.

 

SECTION 38 - MISCELLANEOUS.

 

38.1        Definition
of Tenant. The Term "Tenant" shall include legal representatives, successors and permitted assigns. All covenants
herein shall be made binding upon Tenant and construed to be equally applicable to and binding upon its agents, employees and others
claiming the right to be in the Premises or in the building or in the building through, under or above Tenant.

 

38.2        Tenant.
If more than one individual, firm, or corporation shall join as Tenant, singular context shall be construed to be plural wherever
necessary and the covenants of Tenant shall be the joint and several obligations of each party signing as Tenant and when the parties
signing as Tenant are partners, it shall be the obligation of the firm and of the individual members thereof.

 

38.3       
Gender and Number. Whenever from the context it appears appropriate, each item stated in the singular shall include the
plural and vice versa and the masculine, feminine, or neuter form shall included the masculine, feminine and neuter forms.

 

38.4        Modifications
and Waivers. No change, modification, or waiver of any provision of this Lease shall be valid or binding unless it is in writing
dated after the date hereof and signed by the parties intended to be bound. No waiver of any breach, term, or condition of this
Lease by either party shall constitute a subsequent waiver of the same or any other breach, term, or condition.

 

38.5        Implied
Warranties. OTHER THAN AS SET FORTH IN THIS LEASE, TENANT AND LANDLORD EXPRESSLY AGREE THAT THERE ARE AND SHALL BE NO IMPLIED
WARRANTIES OF MERCHANTABILITY, HABITABILITY, FITNESS FOR A PARTICULAR PURPOSE OR ANY OTHER KIND ARISING OUT OF THIS LEASE, AND
THERE ARE NO WARRANTIES WHICH EXTEND BEYOND THOSE EXPRESSLY SET FORTH IN THIS LEASE.

 

 

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38.6        
Binding Effect. This Lease shall be binding upon and shall inure to the benefit of the parties and their respective heirs,
personal representatives, successors and assigns. This provision shall not be deemed to grant Tenant any right to assign this Lease
or sublet the Premises or any part thereof other than as provided in this Lease.

 

38.7         Severability.
To the fullest extent possible each provision of this agreement shall be interpreted in such fashion as to be effective and
valid under applicable law. If any provision of this Lease is declared void or unenforceable with respect to particular circumstances,
such provision shall remain in full force and effect in all other circumstances. If any provision of this Lease is declared void
or unenforceable, such provision shall be deemed severed from this Lease, which shall otherwise remain in full force and effect.

 

38.8        
Governing Law and Jurisdiction. Except where preempted by the laws of the United States or the rules or regulations of any
agency or instrumentality thereof, this Lease is to be interpreted, construed and governed by the laws of the State of Arizona.
The parties irrevocably and unconditionally submit to the exclusive jurisdiction of the Superior Court of the State of Arizona
for the County of Coconino in connection with any legal action or proceeding arising out of or relating to this Lease and the parties
waive any objection relating to the basis for personal or in rem jurisdiction or to venue which it may now or hereafter
have in any such suit, action or proceeding.

 

38.9        
Entire Agreement. This instrument constitutes the sole and only agreement between Landlord and Tenant respecting the Premises,
the leasing of the Premises to the Tenant, or the Lease term herein specified, and correctly sets forth the obligations of the
Landlord and Tenant to each other as of its date. Any agreements or representations by the Landlord to the Tenant not expressly
set forth in this instrument are void and unenforceable. All prior agreements and understanding of the parties with respect to
such subject matter are hereby superseded. No representations, promises, agreements, or understandings contained in this Lease
regarding the subject matter hereof shall be of any force or effect unless in writing, executed by the party to be bound, and dated
on or subsequent to the date hereof. Captions and headings are for convenience only and shall not alter any provision or be used
in the interpretation of this Lease.

 

38.10       Time
is of the Essence. Time is of the essence of this Lease and each and every provision hereof. Any extension of time granted
for the performance of any duty under this Lease shall not be considered an extension of time for the performance of any other
duty under this Lease.

 

 

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38.11      Brokers.
Tenant represents and warrants that it has not entered into any agreement with, nor otherwise had any dealings with, any broker
or agent in connection or execution of this Lease which could form the basis of any claim by any such broker or agent for a brokerage
fee or commission, finder's fee, or any other compensation of any kind or nature in connection with this Leasehold.

 

	LANDLORD:	 	TENANT:
	 	 	 	 	 
	CANYON PORTAL II, L.L.C.,	 	ORCHARDS ANNEX, LLC, an Arizona
	an Arizona limited liability company	 	corporation
	 	 	 
	By:	/s/ Al Spector	 	By:	/s/ Al Spector
	 	Al Spector	 	 	Al Spector
	Its: Manager	 	Its: Manager

 

 

    	32

    	 

      

List of Exhibits

 

	A.	Project Site Plan
	 	 
	B.	Exclusive Use of Tenants List

 

    	 

    	 

     

EXHIBIT A

 

    	 

    	 

     

 

    	 

    	 

     

CANYON PORTAL II, L.L.C.

TENANT EXCLUSIVES

 

	TRADING POST SHOPS
	TENANT	 	EXCLUSIVE
	Rocky's	 	No Exclusives
	Red Rock Jeep Tours	 	No Exclusives
	Bronco Jewelry	 	No Exclusives
	Nicrin, Inc.	 	No Exclusives
	Steve Aysheh	 	No Exclusives

 

 

	CANYON PORTAL SHOPS
	TENANT	 	EXCLUSIVE
	Pink Jeeps	 	No Exclusives
	Joe Wilcox Red Rock Outpost	 	No Exclusives
	Sedona Candle Gallery	 	No Exclusives
	Resort Marketing International, Inc.	 	In the Canyon Portal Shops Building Resort Marketing International, Inc. has the exclusive rights to market its timeshare properties and related Visitor Services from its lease location. This exclusive is applicable only to the Canyon Portal Shops Building and not the other Buildings at Canyon Portal or Sedona Center.
	Sedona Trolley	 	No Exclusives
	Running Strong, Inc.	 	No Exclusives

  

 

    	Exhibit B

    	 

     

	NORTH RETAIL BUILDING
	TENANT	 	EXCLUSIVE
	Red Canyon Gallery	 	Tenant has an exclusive in the North Retail Building for the sale of fine arts, bronze sculpture, oils, watercolors, pastels, hand-blown glass, manmade metal furniture, silver and gold designer jewelry with the exception that other tenants may sell such items as long as the floor space devoted to such items does not exceed 20% of the total of that tenant's premises.
	Sedona Turquoise Trading	 	Tenant has an exclusive for the North Retail Building to sell authentic Indian-made sand paintings, moccasins and Indian pottery. In addition, Tenant has an exclusive to sell authentic Indian-made turquoise jewelry with the exception that other tenants may sell such turquoise jewelry as long as the floor space devoted to such sales does not exceed 20% of such tenant's premises.
	Canyon Breeze Restaurant	 	Exclusive on a restaurant and lounge facility at the Canyon Portal Project.

  

    	Exhibit B

    	 

     

Exhibit Ii

 

SECOND AMENDMENT TO LEASE

 

(Parking Lease)

 

THIS SECOND AMENDMENT TO LEASE (“Amendment”)
executed and effective as of May 14, 2013 by and between Canyon Portal II, L.L.C., an Arizona limited liability company (“Landlord”)
and Orchards Inn & Restaurant LLC, an Arizona limited liability company (“Tenant”).

 

WHEREAS, Landlord and Tenant entered into
that certain Lease dated January 1, 2012 (“Original Lease”), whereby Landlord leased to Tenant and Tenant leased from
Landlord those certain 10 parking spaces located in Sedona, Arizona described in the Original Lease;

 

WHEREAS, the Original Lease was modified
by that certain Amendment to Lease dated May 1, 2012 (“First Amendment”) (the Original Lease and First Amendment are
hereinafter collectively referred to as the “Lease”);

 

WHEREAS, Landlord and Tenant desire to further
amend the terms of the Lease pursuant to the provisions of this Amendment.

 

NOW, THEREFORE, in consideration of the
above recitals, the mutual promises contained herein, and other good and valuable consideration, the receipt and sufficiency of
which are hereby acknowledged, Landlord and Tenant agree as follows:

 

1. Lease Term.

 

(a) The Lease Term is hereby extended to
December 31, 2040.

 

(b) Section 5 of the Original Lease is hereby
deleted in its entirety and replaced with the following:

 

“ Landlord grants to Tenant the right to extend the Lease
Term for three (3) additional periods of ten (10) years each. Each extension shall be upon the same terms and conditions as the
Original Lease, as modified by this Amendment,

 

(c) Notwithstanding anything herein or in
the Original Lease to the contrary, Tenant shall have the right to terminate this Lease at any time upon thirty (30) days prior
written notice to Landlord.

 

2. Rent. The total gross monthly rent (inclusive of minimum
base rent, common area charges and all other additional rent) payable in accordance with the Lease shall be $2,758 for the period
commencing on the date hereof through the fifth (5th) anniversary of the date hereof. Thereafter, the total gross monthly
rent payable under this Lease shall be adjusted in accordance with that portion of Section 4.B. of the Original Lease beginning
with the second sentence of such Section 4.B.

 

 

3. Size
and Configuration. Section 6 of the Original Lease is hereby deleted in its entirety and replaced with the following”

 

 

 

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“Landlord and Tenant agree that the location of the 10
parking spaces may be changed should such a change be required by municipal or county regulations.”

 

4. Certificate of Insurance. Tenant shall not be required
to include any party other than Landlord or Landlord’s lender as an additional insured under all policies of insurance required
to be maintained by Tenant under the Lease.

 

5. Repair. Section 11 of the Original Lease is hereby
deleted in its entirety.

 

6. Damage or Destruction. Article 12 of the Lease is
hereby deleted in its entirety and replaced with the following:

 

“If all or any portion of the Premises or the Project
is damaged by fire or other casualty insurable under a standard fire insurance policy with a standard extended coverage endorsement,
Minimum Monthly Rental and Additional Rent shall abate and Landlord shall promptly repair as is necessary to replace the Premises
and when placed in such condition the Premises shall be deemed restored and rendered tenantable, such repair or rebuilding to be
commenced within a reasonable time after the occurrence. If such damage occurs in the last two years of the Lease Term or during
any Option Term, Tenant or Landlord shall have the option of terminating the Lease upon written notice to the other party. If Landlord’s
Lender requires that the insurance proceeds be used to retire the debt, Landlord shall have no obligation to rebuild, and this
Lease shall terminate upon notice to Tenant. Promptly following Landlord’s repair or rebuilding, Tenant, at Tenant’s
sole expense, shall repair or replace its stock in trade, fixtures, furniture, furnishings, floor coverings and equipment, and
if Tenant has closed, Tenant shall promptly reopen for business.”

 

7. Waiver of Subrogation. Except with respect to Worker’s
Compensation, to which no waiver of subrogation will apply, each party hereby waives any and every right or cause of action for
the events which occur or accrue during the Lease Term for any and all loss of, or damage to, any of its property (whether or not
such loss or damage is caused by the fault or negligence of the other party or anyone for whom said other party may be responsible),
which loss or damage is covered by valid and collectible fire, extended coverage, “All Risk” or similar policies covering
real property, personal property or business interruption insurance policies, to the extent that such loss or damage is recovered
under said insurance policies. Said waivers shall be in addition to, and not in limitation or derogation of, any other waiver or
release contained in this Lease with respect to any loss or damage to property of the parties hereto. Written notice of the terms
of such mutual waivers shall be given to each insurance carrier and the insurance policies shall be properly endorsed, if necessary,
to prevent the invalidation of coverage by reason of said waivers.

 

8. Indemnification.

 

a. Section 14.1 of the Original Lease is
hereby deleted in its entirety and replaced with the following:

 

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“By
Tenant Excepting any responsibility allocated to Landlord by reason of its
gross negligence (excluding from this exception, however, any responsibility allocated to Landlord by reason of its failure to
enforce the terms of this Lease), Tenant shall indemnify, defend and hold Landlord harmless for, from and against all liabilities,
obligations, claims, suits, damages, penalties, causes of action, costs and expenses (including without limitation, reasonable
attorneys’ fees and expenses) imposed upon or asserted against Landlord by reason of the gross negligence or willful misconduct
of Tenant, its agents, employees, contractors, suppliers, licensees, invitees and guests and/or the occurrence of any of thefollowing
during the Term: (i) any use, non-use or condition of the Premises or any part thereof; (ii) any accident, injury to or death of
persons (including workmen) or loss of or damage to property occurring on or about the Premises or any part thereof; (iii) any
failure on the part of Tenant to perform or comply with any of the provisions of this Lease; (iv) performance of any labor or services
or the furnishings of any materials or other property in respect of the Premises or any part thereof (excluding any such matters
performed or furnished by or at the request of Landlord and unrelated to a default of Tenant under this Lease); or (v) any failure
on the part of Tenant to clean up and/or dispose of any Hazardous Materials, as described in Section 13.2 above, in accordance
with the requirements of this Lease and applicable law. In the event Landlord should be made a defendant in any action, suit or
proceeding brought by reason of any such occurrence, Tenant shall, at its own expense, resist and defend such action, suit or proceeding
or cause the same to be resisted and defended by legal counsel designated by Tenant but approved by Landlord. If any such action,
suit or proceeding should result in a final judgment against Landlord, Tenant shall promptly satisfy and discharge such judgment
or shall cause such judgment to be promptly satisfied and discharged. The obligations of Tenant under this Section 18 arising by
reason of any such occurrence taking place while this Lease is in effect shall survive the termination of this Lease.”

 

b. Section 14.2 of the Original Lease is
hereby deleted in its entirety and replaced with the following:

 

“By Landlord.Landlord shall
save, hold harmless and indemnify Tenant for, from and against all liabilities, obligations, claims, suits, damages, penalties,
causes of action, costs and expenses (including, without limitation, reasonable attorneys’ fees and expenses) imposed upon
or asserted against Tenant by reason of the gross negligence or willful misconduct of Landlord or its agents, contractors, servants
or employees and/or the occurrence of any of the following during the Term: (i) any use or condition of the Premises or any part
thereof (which Landlord is required to maintain); (ii) any accident, injury to or death of persons (including workmen) or loss
of or damage to property occurring on or about the Common Areas; (iii) any failure on the part of Landlord to perform or comply
with any of the provisions of this Lease; and (iv) performance of any labor or services or the furnishings of any materials or
other property in respect of the Premises or any part thereof (excluding any such matters performed or furnished by or at the request
of Tenant). In the event Tenant should be made a defendant in any action, suit or proceeding brought by reason of any such occurrence,
Landlord shall, at its own expense, resist and defend such action, suit or proceeding or cause the same to be resisted and defended
by legal counsel designated by Landlord but approved by Tenant. If any such action, suit or proceeding should result in a final
judgment against Tenant, Landlord shall promptly satisfy and discharge such judgment or shall cause such judgment to be promptly
satisfied and discharged. The obligations of Landlord under this Section 18 arising by reason of any such occurrence taking place
while this Lease is in effect shall survive the termination of this Lease.”

 

    	35

    	 

      

9. Waiver of Subrogation. Except with respect to Worker’s
Compensation, to which no waiver of subrogation will apply, each party hereby waives any and every right or cause of action for
the events which occur or accrue during the Lease Term for any and all loss of, or damage to, any of its property (whether or not
such loss or damage is caused by the fault or negligence of the other party or anyone for whom said other party may be responsible),
which loss or damage is covered by valid and collectible fire, extended coverage, “All Risk” or similar policies covering
real property, personal property or business interruption insurance policies, to the extent that such loss or damage is recovered
under said insurance policies. Said waivers shall be in addition to, and not in limitation or derogation of, any other waiver or
release contained in this Lease with respect to any loss or damage to property of the parties hereto. Written notice of the terms
of such mutual waivers shall be given to each insurance carrier and the insurance policies shall be properly endorsed, if necessary,
to prevent the invalidation of coverage by reason of said waivers.

 

10. Assignment and Subletting. Article 15 of the Original
Lease is hereby deleted in its entirety and replaced with the following:

 

“Tenant shall have the right to transfer or assign this
Lease or sublet all or any portion of the Premises without Landlord’s consent, but with prior written notice to Landlord;
provided, the assignee or subtenant expressly assumes all obligations of Tenant under the Lease. Notwithstanding the foregoing,
Landlord shall not have the right to consent to any assignment or subletting of this Lease or any portion of the Premises to an
entity which controls, is controlled by or is under common control with Tenant, and Landlord shall not withhold its consent to
any proposed assignee or subtenant with financial wherewithal equal to or superior to that of Tenant and who is actively engaged
in the hospitality industry.”

 

11. Estoppels. The period in which Tenant must respond
to a request for an estoppel pursuant to Section 29 of the Lease is hereby modified from seven (7) days to ten (10) business days.
In the event Tenant fails to respond within such ten (10) business day period, Tenant shall be deemed in default under Section
16.1 of the Lease, but in no event will Tenant’s failure to respond be deemed an acknowledgement of any proported facts contained
in any form estoppel .

 

12. Conflicting Terms. In the event of any conflict,
inconsistency or ambiguity between the terms of this Amendment and the Lease, the terms of this Amendment shall control.

 

13. Defined Terms. Capitalized terms not otherwise
defined herein shall have the meaning ascribed to them in the Lease.

 

14. Multiple Counterparts. This Amendment may be executed
in multiple counterparts, each of which shall be deemed an original and together shall constitute one and the same instrument.

 

    	36

    	 

      

15. Ratification. Except as expressly modified by this
Amendment, the Lease remains unmodified and in full force and effect.

 

[THE REMAINDER OF THIS PAGE IS INTENTIONALLY
LEFT BLANK]

 

[SIGNATURE PAGE FOLLOWS]

 

    	37

    	 

      

IN WITNESS WHEREOF, the parties have executed this Amendment
as of the day and year above first written.

 

“Landlord”

 

Canyon Portal II, LLC, an Arizona limited liability company

 

 

	By:	/s/ Al Spector	 
	 	 	 
	Name:	Al Spector	 
	 	 	 
	Title: 	Manager	 

 

“Tenant”

 

Orchards Inn & Restaurant LLC, an Arizona limited liability
company

 

	By:	 /s/ Al Spector	 
	 	 	 
	Name:	Al Spector	 
	 	 	 
	Title:	Manager	 

 

 

Second Amendment to Lease (Orchards Inn
Parking)

  

 

    	 

    	 

      

AMENDMENT TO LEASE

 

This Amendment to Lease (Amendment) is
made this 1st day of May, 2012 by and between Canyon Portal II, LLC as Landlord ("Landlord") and Orchards
Inn & Restaurant LLC as Tenant ("Tenant") and amends the Lease for Parking Spaces between Landlord and Tenant dated
January 1, 2012.

 

RECITALS

 

1.          Landlord
and Tenant entered into a Lease for Parking Spaces on the Canyon Portal property of 10 parking spaces.

 

2.          Tenant
did not have sufficient cash flow during the months of January, February, March and April 2012 to pay Landlord the Rent that was
due.

 

3.          Tenant
has requested and Landlord has agreed to allow Tenant to defer payment of Rent during these months until the months of May, June,
July and August 2012 under the terms and conditions set forth in this Amendment.

 

It is agreed as follows:

 

1.          
Paragraph 4A, Minimum Rent, is amended as follows:

 

A.          Tenant
shall pay to Landlord the Minimum Rent in advance, on the first day of each calendar month, except that in 2012 for the months
of January, February, March and April, Rent shall be paid as follows: (I) January Rent will be paid in May, February Rent will
be paid in June, March Rent will be paid in July and April Rent will be paid in August. This accommodation of deferred Rent is
extended to Tenant by Landlord provided that the revised Rent schedule stated in this Paragraph is adhered to in 2012. Should Tenant
not make Rent payments pursuant to this deferred Rent schedule, Tenant will be in default under this Lease.

 

2.          Full
Force and Effect. Except as modified by this Amendment, the Lease and each of its terms and conditions remains in full force
and effect.

  

	LANDLORD:	 	TENANT:
	 	 	 
	CANYON PORTAL II, LLC, an Arizona 

limited liability company	 	ORCHARDS INN & RESTAURANT, LLC,

an Arizona limited liability company
	 	 	 
	By:	/s/ Al Spector	 	BY:	L’AUBERGE ORCHARDS LLC, an 
	 	Al Spector	 	 	Arizona limited liability company
	Its:	Manager	 	Its:	Manager
	 	 	 	 	 
	 	 	 	By:	/s/ Al Spector
	 	 	 	 	Al Spector
	 	 	 	Its:	Manager

 

    	 

    	 

     

LEASE FOR PARKING SPACES

 

This LEASE FOR PARKING
SPACES ("Lease"), is made this 1st day of January, 2012, by and between Canyon Portal II, LLC, an Arizona limited liability
company, having offices at 6900 E. Camelback Road, Suite 915, Scottsdale, AZ 85251 ("Landlord"), and Orchards Inn &
Restaurant LLC, an Arizona limited liability company, having offices at 270 N. Highway 89A, Suite 11, Sedona, AZ 86336 ("Tenant").

 

RECITALS

 

	 	1.	Landlord owns the Canyon Portal Motel and Shopping Center located at 270-300 N. Highway 89A in Sedona, Arizona. Canyon Portal is a retail shopping center together with 3 adjacent buildings containing 28 motel units.

 

	 	2.	Tenant operates the Orchards Inn, a 42 unit motel located adjacent to Landlord's Property.

 

	 	3.	When at full occupancy, Tenant is short 7 parking spaces. Landlord has excess parking spaces.

 

	 	3.	Landlord desires to lease 10 parking spaces to Tenant. Landlord and Tenant agree to the use of these 10 parking spaces by Tenant under the terms and conditions set forth below.

 

It is agreed as follows:

 

	 	1.	Premises. Landlord and Tenant agree that Tenant will have the exclusive use of the 10 parking spaces which will be used for parking vehicles in connection with the operation of Orchards Inn. The 10 parking spaces are reflected on the attached Exhibit "A".

 

	 	2.	Commencement Date. The Commencement Date of this Lease is January 1, 2012.

 

	 	3.	Termination Date. The Termination Date of this Lease is December 31, 2017.

 

	 	4.	Minimum Rent. Commencing January 1, 2012, Minimum Rent shall be Two Thousand Five Hundred Dollars ($2,500.00) per month. Rent is due and payable in advance on or before the first day of each month and subject to adjustment as set forth below.

 

    	1

    	 

     

A.          Tenant
shall pay to Landlord the Minimum Rent in advance, on the first day of each calendar month. The Minimum Rent hereinafter provided
for shall be paid in lawful money of the United States to Landlord at its address or at such other place as Landlord may from time
to time designate in writing.

 

B.          The
Minimum Rent shall be subject to adjustment as described herein commencing in the second year of the Lease Term and for each year
thereafter as follows except for the first year of any Option Term, when rent shall be adjusted to Market Rent.

 

The base for computing
the adjustment is the Consumers' Price Index for All Urban Consumers, United States Cities Average published by the United States
Department of Labor, Bureau of Labor Statistics (the "Index"), which is in effect on the date of the commencement of
the first day of the previous Lease year ("Beginning Index"). For example, the adjustment for year two would be based
on the Index for the first day of Lease year one. The Index published most immediately preceding the Adjustment Date in question
("Extension Index") is to be used in determining the amount of the adjustment. If the Extension Index has increased over
the Beginning Index, the base monthly rent for the following year shall be set by multiplying the base monthly rent for the previous
year, e.g., for the 12th Lease month, by a fraction, the numerator of which is the Extension Index and the denominator
of which is the Beginning Index. However, the adjustment to the rent shall be no less than three percent (3%) compounded per annum
of the base monthly rent provided in this Lease. As an example, if year one monthly rent is $1,000.00 and the three percent (3%)
is applicable each year, then monthly rent for years two through five would be: year two - $1,030.00; year three - $1,060.90; year
four - $1,092.73; and year five $1,125.51.

 

If the Index is changed
so that the base year differs from that in effect when the Term commences, the Index shall be converted in accordance with the
conversion factor published by the United States Department of Labor, Bureau of Labor Statistics. If the Index is discontinued
or revised during the Term, such other government index or computation with which it is replaced shall be used in order to obtain
substantially the same result as would be obtained if the Index had not been discontinued or revised.

 

C.          Monthly
rent for the first month shall be paid on the date the Term commences. Monthly rent for any partial month shall be prorated at
the rate of one-thirtieth (1/30) of the monthly rent per day.

 

D.          All
rental amounts are "net" rent to Landlord.

 

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5.           Options
to Renew. Provided that (i) this Lease is in full force and effect; (ii) Tenant is in possession of the Premises; and (iii)
Tenant has not been and is not in default under this Lease, Tenant shall have the right and option to further extend the Term of
this Lease for two (2) additional successive renewal periods of five (5) years each. The tenancy resulting from the exercise of
this option shall be upon the same terms and conditions as set forth in this Lease. The Minimum Rent for the first year of each
renewal period shall be adjusted upward or downward by Landlord in the first year of each renewal period based upon the prevailing
rates (Market Rent) for rents in Sinagua Plaza. Thereafter, for years 2, 3, 4 and 5 of each renewal period Rent shall increase
by three percent (3%) per year over the previous years Rent. The option for the renewal periods may be exercised only upon written
notice thereof to Landlord at least six (6) months prior to the Termination Date of this Lease. Within sixty (60) days after exercise
of any option for a renewal period, Landlord shall, in writing, notify Tenant of the Rent during the first year of the renewal
period. If Tenant fails to exercise any option during the period when the option is available, or if this Lease is in default or
is no longer in full force and effect for any reason, the applicable option shall be void.

  

The first renewal period
shall commence on the date following the originally fixed Termination Date. The second renewal period shall commence on the date
following the termination date of the first renewal period.

 

6.           Size
and Configuration. Landlord and Tenant agree that the location of the 17 parking spaces may be changed should such a change
be required by municipal or county regulations.

 

7.           Tenant's
Property. Tenant agrees that all property owned by it in, on, or about the Premises shall be at the sole risk and hazard of
the Tenant. Landlord shall not be liable or responsible for any loss or damage to Tenant, or anyone claiming under or through Tenant,
or otherwise, whether caused by or resulting from a peril required to be insured hereunder, or from water, gas leakage, plumbing,
electricity or electrical apparatus, pipe or apparatus of any kind, the elements or other similar or dissimilar causes, and whether
or not originating in the Premises or elsewhere, irrespective of whether or not Landlord may be deemed to have been negligent with
respect thereto, and provided such damage or loss is not the result of any intentional and wrongful act of Landlord. Tenant shall
require all policies of risk insurance carried by it on its property in the Premises to contain or be endorsed with the provision
in and by which the insurer designated therein shall waive its right of subrogation against Landlord.

 

8.           Certificate
of Insurance. Tenant shall provide annually to Landlord a Certificate of Insurance listing Landlord as an additional named
insured and Barrett Realty LLC as an additional named insured under the Tenant's policy of insurance.

 

9.           Insurance
Companies. The policies affording the insurance required by this Lease shall be with companies (rated A-[minus] VII or better,
A. M. Best's Key Rating Guide) authorized to do business in the State of Arizona and shall be in a form reasonably satisfactory
to Landlord, shall provide replacement cost coverage, shall name Landlord as an additional insured, and shall provide for payment
of loss thereunder to Landlord and Tenant as their interests may appear. The policies or certificates evidencing such insurance
shall be delivered to Landlord on or before the Commencement Date and renewals thereof shall be delivered to Landlord at least
thirty (30) days prior to the expiration dates of the respective policies. Alternatively, the insurance required by this Section
15 may be provided under a blanket policy to the Tenant's existing insurance policy.

 

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10.         Failure
to Procure Insurance. In the event Tenant shall fail to procure insurance required under this Lease or fail to maintain the
same in force continuously during the Term or any extension thereof, Landlord shall be entitled to procure such insurance and Tenant
shall, upon demand, immediately reimburse Landlord for such premium expense or Landlord may declare Tenant in default under this
Lease.

 

11.         Repair.
In the event of loss under any such policy or policies, Tenant shall promptly proceed with the repair and restoration of the damaged
or destroyed improvements. The insurance proceeds, if less than $20,000.00, shall be paid to Tenant for application to such repair,
restoration or remediation, so long as (a) Tenant is not then in default under this Lease, and (b) Tenant expressly covenants in
writing with Landlord to expend such funds for the repair, restoration or remediation of the Premises and the improvements therein,
and to furnish Landlord with documentation evidencing such expenditure of funds for work and improvements incorporated in the Premises
within thirty (30) days following completion of such repair, restoration or remediation. If the insurance proceeds exceed $20,000.00,
the same shall be paid to and held in trust by the Landlord. All insurance proceeds described in this Paragraph 11 shall be paid
upon architects' certificates and contractors', subcontractors' and materialmen's waivers of lien for the cost and expense of repair,
restoration or remediation of the damage. If at any time such insurance proceeds shall be insufficient to pay fully the cost of
completion of such repair, restoration or remediation, Tenant shall upon demand of Landlord pay a sufficient portion of such cost
so that it shall appear to the reasonable satisfaction of Landlord that the amount of insurance money in the hands of Tenant or
Landlord, as applicable, shall at all times be sufficient to pay for the completion of the repairs, restoration or remediation
free and clear of all liens. Upon the completion of the repairs, restoration or remediation, free and clear of all liens, any surplus
of insurance monies shall be paid to Tenant, provided that Tenant is not then in default hereunder. In the event that this Lease
shall have been terminated for any default of Tenant under any of the terms and provisions contained in this Lease, all proceeds
of insurance in the hands of Tenant or Landlord and all claims against insurers shall be and become the absolute property of Landlord.

 

12.         Damage
or Destruction. 

 

12.1 Tenant Obligations.
In the event of damage to or destruction of any of the improvements on the Premises by fire or other casualty, Tenant shall give
Landlord immediate notice thereof and shall, at Tenant's own expense and whether or not the insurance proceeds are sufficient for
the purpose, promptly commence and thereafter diligently pursue completion of the repair, restoration or rebuilding of the same
so that upon completion of such repairs, restoration or rebuilding, the value and rental value of the improvements shall be substantially
equal to the value and rental value thereof immediately prior to the occurrence of such fire or other casualty. Tenant hereby expressly
waives any statutory right to terminate this Lease in the event of damage or destruction of the Premises or all or any portion
of the buildings or improvements thereon.

 

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12.2 Lease Termination.
Notwithstanding anything to the contrary contained herein, if the Premises should be rendered untenantable by fire or other casualty
during the last two (2) years of the Term to the extent of fifty percent (50%) or more of the replacement cost of the Premises,
Tenant shall have the option to terminate this Lease by notice to Landlord within sixty (60) days after the occurrence of such
damage or destruction. Upon termination, this Lease and the Term hereof shall cease and come to an end as of the effective date
of such notice (which shall be not less than thirty (30) nor more than ninety (90) days after the notice and shall be specified
in the notice). Any unearned rent or other charges shall be apportioned as of the effective date and Tenant shall assign to Landlord
all of its rights to the insurance proceeds arising out of damage or destruction to the improvements and shall pay Landlord (when
the information is ascertained) the difference between the value of the property damaged or destroyed, prior to the damage or destruction,
and the amount, if any, of the insurance proceeds.

 

13.         Easements.
Landlord expressly reserves all rights in and with respect to the use of the Premises as provided herein, including (without in
any way limiting the generality of the foregoing) the rights of Landlord to establish Common Areas and grant parking easements
to others and to enter upon the Premises and give easements to others for the purpose of installing, using, maintaining, renewing
and replacing such overhead or underground water, gas, sewer, and other pipe lines, and telephone, electric and power lines, cables
and conduits as Landlord may deem desirable in connection with the development or use of the other property in the Project or any
other property in the neighborhood thereof, whether owned by Landlord or not.

 

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14.         Indemnification.

 

14.1. By Tenant.
Excepting any responsibility allocated to Landlord by reason of its negligence (excluding from this exception, however, any responsibility
allocated to Landlord by reason of its failure to enforce the terms of this Lease), Tenant shall indemnify, defend and hold Landlord
harmless for, from and against all liabilities, obligations, claims, suits, damages, penalties, causes of action, costs and expenses
(including without limitation, reasonable attorneys' fees and expenses) imposed upon or asserted against Landlord by reason of
the acts or omissions of Tenant, its agents, employees, contractors, suppliers, licensees, invitees and guests and/or the occurrence
of any of the following during the Term: (i) any use, non-use or condition of the Premises or any part thereof; (ii) any accident,
injury to or death of persons (including workmen) or loss of or damage to property occurring on or about the Premises or any part
thereof; (iii) any failure on the part of Tenant to perform or comply with any of the provisions of this Lease; (iv) performance
of any labor or services or the furnishings of any materials or other property in respect of the Premises or any part thereof (excluding
any such matters performed or furnished by or at the request of Landlord and unrelated to a default of Tenant under this Lease);
or (v) any failure on the part of Tenant to clean up and/or dispose of any Hazardous Materials, as described in Section 13.2 above,
in accordance with the requirements of this Lease and applicable law. In the event Landlord should be made a defendant in any action,
suit or proceeding brought by reason of any such occurrence, Tenant shall, at its own expense, resist and defend such action, suit
or proceeding or cause the same to be resisted and defended by legal counsel designated by Tenant but approved by Landlord. If
any such action, suit or proceeding should result in a final judgment against Landlord, Tenant shall promptly satisfy and discharge
such judgment or shall cause such judgment to be promptly satisfied and discharged. The obligations of Tenant under this Section
18 arising by reason of any such occurrence taking place while this Lease is in effect shall survive the termination of this Lease.

 

14.2 By Landlord.
Landlord shall save, hold harmless and indemnify Tenant for, from and against all liabilities, obligations, claims, suits, damages,
penalties, causes of action, costs and expenses (including, without limitation, reasonable attorneys' fees and expenses) imposed
upon or asserted against Tenant by reason of the negligence of Landlord or its agents, contractors, servants or employees.

 

15.          Assignment
and Subletting. Tenant shall not transfer or assign this Lease or any interest in this Lease or sublet the Premises or any
portion thereof without first obtaining the written consent of Landlord, which consent may be given or withheld in Landlord's sole
discretion; and any attempted transfer, assignment or subletting, including any involuntary transfers or assignments by operation
of law, without such consent shall be void and confer no rights upon any third person, and at the option of Landlord, shall cause
a termination of this Lease, in which event such third person shall occupy the Premises as a tenant at sufferance. The acceptance
of any rent payments by Landlord from any such alleged assignee shall not constitute approval of the assignment or subletting of
this Lease by Landlord. No transfer, assignment or subletting shall relieve Tenant of its liability for the full performance of
all of the provisions, agreements, covenants and conditions of this Lease. A consent by Landlord to one transfer, assignment or
subletting shall not operate as a waiver of this Section as to any future transfer, assignment or subletting, and this Section
15 shall apply to any transferee, assignee or subtenant.

 

16.           Defaults
by Tenant.

 

16.1 Event
of Default. Each of the following occurrences shall be an Event of Default hereunder:

 

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A.           If
Tenant fails to pay any Rent, Additional Charges or any sum due hereunder promptly when due and such failure continues for three
(3) days after the date such payment was due.

 

B.           If
Tenant defaults or breaches any of the other (non-monetary) covenants, agreements, conditions or undertakings herein to be kept,
observed and performed by Tenant and such default continues for ten (10) days after notice thereof in writing to Tenant.

 

C.           If
Tenant files any petition under any chapter or section of the Federal Bankruptcy Code or any similar law, state or federal, whether
now or hereafter existing, or shall file an answer admitting insolvency or inability to pay its debts.

 

D.           If
Tenant fails to obtain a stay of any involuntary proceedings under any chapter or section of the Federal Bankruptcy Code within
sixty (60) days after the institution thereof.

 

E.           If
a trustee or receiver is appointed for Tenant or for a major portion of its property or for any portion of the Premises and such
appointment is not vacated and dismissed within sixty (60) days thereafter and in any event prior to any action adverse to the
interest of Tenant or Landlord having been taken by such trustee or receiver.

 

F.           If
any court takes jurisdiction of a major portion of the property of Tenant or any part of the Premises in any involuntary proceeding
for dissolution, liquidation or winding up of Tenant and such jurisdiction is not relinquished or vacated within sixty (60) days.

 

G.           If
Tenant makes an assignment for the benefit of its creditors.

 

16.2 Re-Enter of
Premises. Upon the occurrence of any such Event(s) of Default and at any time thereafter, Landlord shall have the right, at
its election, to reenter the Premises, or any part thereof, either with or without process of law, and to expel, remove and evict
Tenant and all persons occupying or upon the same under Tenant, using such force as may be lawful and necessary in so doing, and
to possess the Premises and enjoy the same as in their former estate and to take full possession of and control over the Premises
and the buildings and improvements thereon and to have, hold and enjoy the same and to receive all rental income of and from the
same. No reentry by Landlord shall be deemed an acceptance of a surrender of this Lease, nor shall it absolve or discharge Tenant
from any liability under this Lease. Upon such reentry, all rights of Tenant to occupy or possess the Premises shall cease and
terminate.

 

16.3 Lease Termination.
Upon the occurrence of any such Event(s) of Default and at any time thereafter, Landlord shall have the right, at its election,
with or without reentry as provided in Section 16.2, to give written notice to Tenant stating that this Lease shall terminate on
the date specified by such notice, and upon the date specified in such notice this Lease and the Term hereby demised and all rights
of Tenant hereunder shall terminate. Upon such termination, Tenant shall quit and peacefully surrender to Landlord the Premises
and the buildings and improvements then situated thereon.

 

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16.4 Reletting.
At any time and from time to time after such reentry, Landlord may re-let the Premises and the buildings and improvements thereon,
or any part thereof, in the name of Landlord or otherwise, for such term or terms (which may be greater or less than the period
which would otherwise have constituted the balance of the Term of this Lease), and on such conditions (which may include concessions
or free rental) as Landlord, in its reasonable discretion, may determine and may collect and receive the rental therefore. However,
in no event shall Landlord be under any obligation to re-let the Premises and the buildings and improvements thereon, or any part
thereof, and Landlord shall in no way be responsible or liable for any failure to re-let or for any failure to collect any rental
due upon any such re-letting. Even though it may re-let the Premises, Landlord shall have the right thereafter to terminate this
Lease and all of the rights of Tenant in or to the Premises. Nothing contained in the foregoing shall be deemed a waiver or relinquishment
by Tenant of any duty imposed by law on Landlord to mitigate its damages.

 

16.5 Survival of
Liability. Unless Landlord shall have notified Tenant in writing that it has elected to terminate this Lease, no such reentry
or action in lawful detainer or otherwise to obtain possession of the Premises shall relieve Tenant of its liability and obligations
under this Lease; and all such liability and obligations shall survive any such reentry. In the event of any such reentry, whether
or not the Premises and the buildings and improvements thereon, or any part thereof, shall have been re-let, Tenant shall pay to
Landlord the entire rental and all other charges required to be paid by Tenant up to the time of such reentry of this Lease, and
thereafter Tenant, until the end of what would have been the Term of this Lease in the absence of such reentry, shall be liable
to Landlord, and shall pay to Landlord, as damages for Tenant's default:

 

A.           The
amount of Minimum Base Rent which would be payable under this Lease by Tenant if this Lease were still in effect, less

 

B.           The
net proceeds of any re-letting, after deducting all of Landlord's expenses in connection with such re-letting, including without
limitation all repossession costs, brokerage commissions, legal expenses, attorneys' fees, alteration costs and expenses of preparation
for such re-letting.

 

Tenant shall be liable
for and pay such damages to Landlord on a monthly basis on the first day of each month and Landlord shall be entitled to recover
from Tenant monthly as the same shall arise. The excess, if any, in any month or months, of the net proceeds described in subparagraph
(B) above actually received by Landlord over the Minimum Base Rent described in subparagraph (A) above shall belong to Landlord,
provided that such excess shall be credited and applied against Tenant's future obligations arising under this Section 16.5 as
the same become due and payable by Tenant hereunder, and that Tenant shall remain liable for future deficiencies, as applicable.
Notwithstanding any such reentry without termination, Landlord may at any time thereafter, by written notice to Tenant, elect to
terminate this Lease for Tenant's previous breach.

 

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16.6 Cumulative
Remedies. Each right and remedy of Landlord provided for in this Lease shall be cumulative and in addition to every other right
or remedy provided for in this Lease or now or hereafter existing at law or in equity or by statute or otherwise; and the exercise
or beginning of the exercise by Landlord of any one or more of such rights or remedies shall not preclude the simultaneous or later
exercise by Landlord of any or all other rights or remedies provided for in this Lease now or hereafter existing at law or in equity
or by statute or otherwise.

 

16.7 Sublessee Defaults.
Any violation of any covenant or provision of this Lease, whether by act or omission, by any sublessee or any other persons occupying
any portion of the Premises under the rights of Tenant shall be deemed a violation of such provision by Tenant and a default under
this Lease. Any such violation shall not be deemed to be a default hereunder if and so long as Tenant in good faith and at its
own expense takes and diligently pursues any and all steps it is entitled to take and which steps if completed will cure said default.

 

16.8 Repetitive
Rent Payment Defaults.            NOTWITHSTANDING THE PROVISIONS OF
THIS LEASE TO THE CONTRARY, IF IN ANY ONE (1) PERIOD OF TWELVE (12) CONSECUTIVE MONTHS, TENANT SHALL HAVE BEEN IN DEFAULT IN THE
PAYMENT OF RENT HEREIN AT LEAST THREE (3) TIMES AND LANDLORD, BECAUSE OF SUCH DEFAULTS, SHALL HAVE SERVED UPON TENANT WITHIN SUCH
TWELVE (12) MONTH PERIOD THREE (3) OR MORE NOTICES OF LATE PAYMENT, THEN THE FOURTH DEFAULT SHALL BE DEEMED TO BE A NON-CURABLE
DEFAULT AND LANDLORD SHALL BE ENTITLED TO IMMEDIATE POSSESSION OF THE PREMISES.

 

16.9 Cure Period.
Notwithstanding any other provision of this Section, Landlord and Tenant agree that if the default complained of, other than for
the payment of monies, is of such a nature that the same cannot be cured within the twenty (20) day period for curing as specified
in the written notice relating thereto, then such default shall be deemed to be cured by the other party within such period of
twenty (20) days if the other party shall have commenced thereof and shall continue thereafter with all due diligence to effect
such cure and does so complete the same with the use of such diligence as aforesaid.

 

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16.10 Late Charges.
A late charge in the amount of ten percent (10%) of the delinquent payment shall be assessed to any payment required to be made
by Tenant to Landlord under the terms of this Lease not received by Landlord within three (3) days after its due date (regardless
of whether Tenant has been given notice of such failure of payment). If Tenant tenders to Landlord a check that is returned marked
"NSF" or its equivalent, Tenant shall pay Landlord a payment in the amount of twenty percent (20%) of the amount of such
non-negotiable check. Tenant's failure to pay any such late charge within three (3) days after Landlord's written demand therefor
shall constitute an Event of Default hereunder. In addition to the payments set forth in the preceding two sentences, Tenant shall
pay Landlord interest at the rate of eighteen percent (18%) per annum from the date any payment is due until the date such payment
is actually received by Landlord.

 

17.           Condemnation.
If title to all or any portion of the Premises is taken by a public or quasi-public authority under any statute or by right of
eminent domain of any governmental body, whether such loss or damage results from condemnation of part or all of the Premises,
Tenant shall not be entitled to participate or receive any part of the damages or award except where the same shall provide for
Tenant's moving or other reimbursable expenses, the portion thereof allocated to the taking of Tenant's trade fixtures, equipment
and personal property or to a loss of business by Tenant. Should any power of eminent domain be exercised after Tenant is in possession,
such exercise shall not void or impair this Lease unless the amount of the Premises so taken substantially and materially impairs
the usefulness of the Premises for the purposes for which they are leased in which case, either party may cancel this Lease by
notice to the other within sixty (60) days after such possession. Should only a portion of the Premises be taken and the Premises
continue to be reasonably suitable for Tenant's use, the rent shall be reduced from the date of such possession in direct proportion
to the reduction in the square footage of the Premises. Notwithstanding the language of this Paragraph, Tenant shall be allowed
to separately litigate its damages for loss of its business as a result of any condemnation.

 

18.           Tenant's
Waiver of Statutory Rights. In the event of any termination of the Term (or any repossession of the Premises), Tenant so far
as permitted by law, waives (i) any notice of reentry or of the institution of legal proceedings to that end; and (ii) the benefits
of any laws now or hereafter in force exempting property from liability for rent or for debt.

 

19.           Waiver
of Performance. No failure by Landlord or Tenant to insist upon the strict performance of any term or condition hereof or to
exercise any right, power or remedy consequent upon a breach thereof and no submission by Tenant or acceptance by Landlord of full
or partial rent during the continuance of any such breach shall constitute a waiver of any such breach or of any such term. No
waiver of any breach shall affect or alter this Lease (which shall continue in full force and effect), or the respective rights
of Landlord or Tenant with respect to any other then-existing or subsequent breach.

 

20.           Remedies
Cumulative. Each right, power and remedy provided for in this Lease now or hereafter existing at law, in equity or otherwise
shall be cumulative and concurrent and shall be in addition to every other right, power or remedy provided for in this Lease now
or hereafter existing at law, in equity or otherwise; and the exercise or beginning of the exercise of any one or more of the rights,
powers or remedies provided for in this Lease shall not preclude the simultaneous or later exercise of any or all such other rights,
powers or remedies.

 

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21.           Conveyance
by Landlord. In the event Landlord or any successor Landlord shall convey or otherwise dispose of the Premises, it shall thereupon
be released from all liabilities and obligations imposed upon Landlord under this Lease (except those accruing prior to such conveyance
or other disposition) and such liabilities and obligations shall be binding solely on the then owner of the Premises.

 

22.           No
Personal Liability to Landlord. Tenant shall look solely to Landlord's interest in the Premises for the satisfaction of any
judgment or decree requiring the payment of money by Landlord based upon any default under this Lease, and no other property or
assets of Landlord, or any partner or member of, or shareholder in, Landlord, shall be subject to levy, execution or other enforcement
procedures for satisfaction of any such judgment or decree.

 

23.           Attorneys'
Fees. In the event Landlord retains an attorney to enforce its rights under this Lease or to bring suit for possession of the
Premises, for the recovery of any sum due hereunder, or for any other relief against Tenant, declaratory or otherwise, arising
out of a breach of any term of this Lease, or in the event Tenant should bring any action for any relief against Landlord, declaratory
or otherwise, arising out of this Lease, the prevailing party shall be entitled to receive from the other party reasonable attorneys'
fees and reasonable costs and expenses, which shall be deemed to have accrued due to the commencement of such action and shall
be enforceable whether or not such action is prosecuted to judgment.

 

24.           Provisions
Subject to Applicable Law. All rights, powers and remedies provided herein shall be exercised only to the extent that the exercise
thereof shall not violate any applicable law and are intended to be limited to the extent necessary so that they shall not render
this Lease invalid or unenforceable under any applicable law. If any term of this Lease shall be held to be invalid, illegal or
unenforceable, the validity of the other terms of this Lease shall in no way be affected thereby.

 

25.           Right
to Cure Tenant's Defaults. In the event Tenant shall breach any term, covenant or provision of this Lease, Landlord may at
any time, without notice, cure such breach for the account and at the expense of Tenant. If Landlord at any time, by reason of
such breach, is compelled to pay or elects to pay any sum of money or to do any act that will require the payment of any sum of
money, or is compelled to incur any expense, including reasonable attorneys' fees, incurred in instituting, prosecuting or defending
any actions or proceedings to enforce Landlord's rights under this Lease or otherwise, the sum or sums so paid by Landlord, with
all interest, costs and damages, shall be deemed to be Additional Charges and shall be paid by Tenant to Landlord on the first
day of the month following the incurring of such expenses of the payment of such sums and shall include interest at the rate of
eighteen percent (18%) per annum from the date Landlord makes a payment until Tenant pays such Additional Charges in full.

 

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26.           Notices.
Any notice to be given by Landlord or Tenant shall be given exclusively in writing and delivered in person or by overnight mail
service to Landlord or Tenant, forwarded by certified or registered mail, postage prepaid, or sent via facsimile transmission,
to the address indicated in the Fundamental Lease Provisions, unless the party giving any such notice has been notified, in writing,
of a change of address. Any such notice shall be deemed effective (a) upon receipt or refusal to accept delivery, if personally
delivered; (b) on the next business day following delivery to the overnight courier; (c) in the case of certified mailing, on the
date of actual delivery as shown by the addressee's receipt or upon the expiration of three (3) business days following the date
of mailing, whichever occurs first; or (d) in the case of facsimile transmission, upon receipt (a written confirmation of successful
transmission from the transmitting facsimile machine being prima facie evidence of such receipt).

 

27.           Signs.
Tenant shall not place, alter, exhibit, inscribe, paint or affix any sign, awning, canopy, advertisement, notice or other lettering
on any part of the outside of the Premises, or of the building of which the Premises is a part, or inside the Premises if visible
from the outside, without first obtaining Landlord's written approval thereof, which shall not be unreasonably withheld, and if
so approved, Tenant shall maintain the same in good condition and repair. All signs shall comply with applicable ordinances or
other governmental restrictions and with all applicable rules and regulations then in force or as may be put in force and effect
from time to time by any governmental authority or by Landlord.

 

28.           Landlord's
Inspections.

 

28.1 Inspection.
Landlord reserves the right to, at all reasonable times, by itself or by its duly authorized agents, employees and contractors,
and without notice to go upon and inspect the Premises and every part thereof, to enforce or carry out the provisions of this Lease,
to make, at its option, repairs, installations, alterations, improvements and additions to the Premises or the building of which
the Premises are a part, to perform any defaulted obligation of Tenant or for any other proper purposes. Landlord also reserves
the right to install or place upon or affix to the roof and exterior walls of the Premises: equipment, signs, displays, antennae
and any other object or structure of any kind, provided the same shall not interfere with Tenant's occupancy or materially impair
the structural integrity of the building of which the Premises are a part.

 

28.2 Presenting
for Sale or Lease.           Landlord hereby reserves the right during
usual business hours to enter the Premises and to show the same for purposes of sale, lease or mortgage, and during the last six
(6) months of the term of this Lease, or the extension thereof, to exhibit the same to any prospective tenant, and to display appropriate
signage for such sale or lease. Prospective purchasers or tenants authorized by Landlord may inspect the Premises during reasonable
hours at any time.

 

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29.           Estoppel
Certificate. Tenant will execute, acknowledge and deliver to Landlord, within seven (7) days following a written request therefor,
a certificate certifying (a) that this Lease is unmodified and in full force (or, if there have been modifications, that the Lease
is in full force and effect, as modified, and stating the modifications); (b) the dates, if any, to which rent, Additional Charges
and other sums payable hereunder have been paid; (c) that no notice has been received by Tenant of any default which has not been
cured, except as to defaults specified in such certificate; and (d) this Lease is and shall be subordinate to any existing or future
deed of trust, mortgage or security agreement placed upon the Premises or the Project by the Landlord or owner of the Property.
Any claim of Tenant in contradiction of any of the foregoing matters must be set forth with specificity in the certificate. Any
such certificate may be relied upon by any prospective purchaser or encumbrancer of the Premises or any part thereof. Tenant's
failure to deliver such certificate within the time permitted hereby shall be conclusive upon Tenant that this Lease is in full
force and effect, except to the extent any modification has been represented by Landlord, and there are no uncured defaults in
Landlord's performance, and that not more than one month's rent has been paid in advance. In addition, at Landlord's option, after
notice to Tenant and expiration of applicable grace period under this Lease, such failure of Tenant to deliver such certificate
shall constitute an Event of Default. Tenant acknowledges and agrees that the promise to issue such statements pursuant hereto
are a material consideration inducing Landlord to enter into this Lease and that the breach of such promise shall be deemed a material
breach of this Lease.

 

30.           Waiver
of Trial By Jury. TENANT HEREBY WAIVES ALL RIGHTS TO TRIAL BY JURY IN ANY CLAIM, ACTION, PROCEEDING OR COUNTERCLAIM BY EITHER
LANDLORD OR TENANT AGAINST EACH OTHER ON ANY MATTERS ARISING OUT OF OR IN ANY WAY CONNECTED WITH THIS LEASE, THE RELATIONSHIP OF
LANDLORD AND TENANT, AND/OR TENANT'S USE OR OCCUPANCY OF THE LEASED PREMISES. TENANT AGREES THAT EXCLUSIVE JURISDICTION FOR ALL
LEGAL ACTIONS SHALL BE COCONINO COUNTY SUPERIOR COURT.

 

31.           Recording.
Neither this Lease nor a memorandum thereof, may be recorded, or otherwise made public, by any means, without the express written
consent of Landlord. Any such recording or publication without such consent, shall, at Landlord's option, cause this Lease and
all rights of Tenant hereunder, to be immediately forfeited and of no further force and effect, provided, however, that Landlord
shall have the right to such action against Tenant, for damages resulting from such recording, as Landlord shall be entitled to
by law.

 

32.           Subordination.
This Lease is hereby declared to be subject and subordinate to the lien of any present or future encumbrance or encumbrances upon
the Premises or the Project, irrespective of the time of execution or the time of recording of any such encumbrance or encumbrances.
Landlord shall use its good faith efforts to obtain for Tenant an attornment and non-disturbance agreement from any lender which
has a lien on the Premises. This subordination is subject to the right of Tenant upon a foreclosure or other action taken under
any mortgage by the holders thereof to have this Lease and the rights of Tenant hereunder not be disturbed but to continue in full
force and effect so long as Tenant shall not be in default hereunder. The word "encumbrance" as used herein includes
mortgages, deeds of trust or other similar instruments, and modifications, extensions, renewals and replacements thereof, and any
and all advances thereunder.

 

    	13

    	 

     

33.           Miscellaneous.

 

33.1 Definition
of Tenant.           The Term "Tenant" shall include legal
representatives, successors and permitted assigns. All covenants herein shall be made binding upon Tenant and construed to be equally
applicable to and binding upon its agents, employees and others claiming the right to be in the Premises or in the building or
in the building through, under or above Tenant.

 

33.2 Tenant.
If more than one individual, firm, or corporation shall join as Tenant, singular context shall be construed to be plural wherever
necessary and the covenants of Tenant shall be the joint and several obligations of each party signing as Tenant and when the parties
signing as Tenant are partners, it shall be the obligation of the firm and of the individual members thereof.

 

33.3 Gender and
Number. Whenever from the context it appears appropriate, each item stated in the singular shall include the plural and vice
versa and the masculine, feminine, or neuter form shall included the masculine, feminine and neuter forms.

 

33.4 Modifications
and Waivers. No change, modification, or waiver of any provision of this Lease shall be valid or binding unless it is in writing
dated after the date hereof and signed by the parties intended to be bound. No waiver of any breach, term, or condition of this
Lease by either party shall constitute a subsequent waiver of the same or any other breach, term, or condition.

 

33.5 Implied Warranties.
OTHER THAN AS SET FORTH IN THIS LEASE, TENANT AND LANDLORD EXPRESSLY AGREE THAT THERE ARE AND SHALL BE NO IMPLIED WARRANTIES OF
MERCHANTABILITY, HABITABILITY, FITNESS FOR A PARTICULAR PURPOSE OR ANY OTHER KIND ARISING OUT OF THIS LEASE, AND THERE ARE NO WARRANTIES
WHICH EXTEND BEYOND THOSE EXPRESSLY SET FORTH IN THIS LEASE.

 

33.6 Binding Effect.
This Lease shall be binding upon and shall inure to the benefit of the parties and their respective heirs, personal representatives,
successors and assigns. This provision shall not be deemed to grant Tenant any right to assign this Lease or sublet the Premises
or any part thereof other than as provided in this Lease.

 

    	14

    	 

      

33.7   Severability.
To the fullest extent possible each provision of this agreement shall be interpreted in such fashion as to be effective and valid
under applicable law. If any provision of this Lease is declared void or unenforceable with respect to particular circumstances,
such provision shall remain in full force and effect in all other circumstances. If any provision of this Lease is declared void
or unenforceable, such provision shall be deemed severed from this Lease, which shall otherwise remain in full force and effect.

 

33.8   Governing
Law and Jurisdiction. Except where preempted by the laws of the United States or the rules or regulations of any agency or
instrumentality thereof, this Lease is to be interpreted, construed and governed by the laws of the State of Arizona. The parties
irrevocably and unconditionally submit to the exclusive jurisdiction of the Superior Court of the State of Arizona for the County
of Coconino in connection with any legal action or proceeding arising out of or relating to this Lease and the parties waive any
objection relating to the basis for personal or in rem jurisdiction or to venue which it may now or hereafter have in any such
suit, action or proceeding.

 

33.9   Entire
Agreement. This instrument constitutes the sole and only agreement between Landlord and Tenant respecting the Premises, the
leasing of the Premises to the Tenant, or the Lease term herein specified, and correctly sets forth the obligations of the Landlord
and Tenant to each other as of its date. Any agreements or representations by the Landlord to the Tenant not expressly set forth
in this instrument are void and unenforceable. All prior agreements and understanding of the parties with respect to such subject
matter are hereby superseded. No representations, promises, agreements, or understandings contained in this Lease regarding the
subject matter hereof shall be of any force or effect unless in writing, executed by the party to be bound, and dated on or subsequent
to the date hereof. Captions and headings are for convenience only and shall not alter any provision or be used in the interpretation
of this Lease.

 

33.10 Time
is of the Essence. Time is of the essence of this Lease and each and every provision hereof. Any extension of time granted
for the performance of any duty under this Lease shall not be considered an extension of time for the performance of any other
duty under this Lease.

 

33.11 Brokers.
Landlord and Tenant represent and warrant that neither has entered into any agreement with, nor otherwise had any dealings with,
any broker or agent in connection or execution of this Lease which could form the basis of any claim by any such broker or agent
for a brokerage fee or commission, finder’s fee, or any other compensation of any kind or nature in connection with this
Leasehold.

 

 

    	15

    	 

     

	LANDLORD:	 	TENANT:
	 	 	 
	CANYON PORTAL II, L.L.C., An Arizona	 	ORCHARDS INN & RESTAURANT LLC, an
	limited liability company	 	Arizona limited liability company
	 	 	 
	 	 	 	By:	L'Auberge Orchards LLC, an Arizona
	By: 	/s/ Al Spector	 	 	limited liability company
	 	Al Spector	 	 	 
	Its:	Manager	 	Its:	Manager
	 	 	 	 	 
	 	 	 	By:	/s/ Al Spector
	 	 	 	 	Al Spector
	 	 	 	 	 
	 	 	 	Its:	Manager

 

    	 

    	 

     

 

    	 

    	 

     

 

 

    	 

    	 

     

Exhibit Iii

 

TRADING POST SHOPS

 

TENANT LEASE

 

SEDONA, ARIZONA

 

Landlord: Canyon Portal II, L.L.C.

 

Tenant: Orchards Inn & Restaurant,
LLC

Space: 12A

 

Date of Lease: May 1, 2010

 

    	 

    	 

     

TABLE OF CONTENTS 

 

	SECTION 1 - FUNDAMENTAL LEASE PROVISIONS.	 	1
	 	 	 	 
	SECTION 2 - PREMISES	 	2
	 	 	 	 
	3.1	No Option	 	2
	 	 	 	 
	3.2	Approval of Financial Statement	 	3
	 	 	 	 
	3.3	No Co-Tenancy Requirement	 	3
	 	 	 	 
	3.4	Name Change of the Project	 	3
	 	 	 	 
	SECTION 4 - LEASE TERM	 	3
	 	 	 	 
	4.1	Term	 	3
	 	 	 	 
	4.2	Delay in Commencement	 	3
	 	 	 	 
	4.3	Holding Over	 	3
	 	 	 	 
	4.4	Abandonment	 	3
	 	 	 	 
	4.5	Surrender of Premises	 	4
	 	 	 	 
	4.6	Extension of Term	 	4
	 	 	 	 
	SECTION 5 - RENT. SECURITY DEPOSIT AND SALES REPORTS	 	4
	 	 	 	 
	5.1	Rent	 	4
	 	 	 	 
	5.2.	Security Deposit	 	5
	 	 	 	 
	SECTION 6 - NO COUNTERCLAIM OR ABATEMENT OF RENT.	 	5
	 	 	 	 
	6.1	No Notice	 	5
	 	 	 	 
	6.2	No Conditional Payment	 	6

 

    	 

    	 

     

	SECTION 7 - COMMON AREAS	 	6
	 	 	 	 
	7.1	Use of Common Areas	 	6
	 	 	 	 
	7.2	Parking Policy	 	6
	 	 	 	 
	7.3	Parking Charges	 	7
	 	 	 	 
	SECTION 8 - USE OF PREMISES	 	7
	 	 	 	 
	8.1	Use	 	7
	 	 	 	 
	8.2	Prohibited Conduct	 	7
	 	 	 	 
	8.3	Prescribed Conduct	 	8
	 	 	 	 
	8.4	Intentionally Deleted	 	8
	 	 	 	 
	SECTION 9 - CONSTRUCTION OF IMPROVEMENTS	 	8
	 	 	 	 
	9.1	Construction	 	8
	 	 	 	 
	9.2	Tenant Improvements.	 	8
	 	 	 	 
	9.3	Written Approval	 	9
	 	 	 	 
	9.4	Trade Fixtures 	 	9
	 	 	 	 
	SECTION 10 - TENANT OBLIGATIONS	 	9
	 	 	 	 
	10.1	Payment by Tenant	 	9
	 	 	 	 
	10.2 	Payment by Landlord 	 	9
	 	 	 	 
	10.3	Proof of Payment	 	10
	 	 	 	 
	10.4	Personal Property Taxes.	 	10
	 	 	 	 
	10.5	Premises Utilities	 	10

 

    	ii

    	 

     

	10.6	Merchants Association	 	10
	 	 	 	 
	SECTION 11 - COMMON /AREA MAINTENANCE	 	10
	 	 	 	 
	11.1	Expenses	 	10
	 	 	 	 
	11.2	Common Area Expenses Estimates	 	12
	 	 	 	 
	SECTION 12 - MAINTENANCE AND REPAIRS BY TENANT	 	12
	 	 	 	 
	12.1	Tenant's Obligation	 	12
	 	 	 	 
	12.2	Prohibited Acts	 	13
	 	 	 	 
	12.3	Rights of Landlord	 	13
	 	 	 	 
	SECTION 13 - REPAIR BY LANDLORD	 	13
	 	 	 	 
	13.1	Repair by Landlord	 	13
	 	 	 	 
	13.2	Hazardous Materials	 	14
	 	 	 	 
	SECTION 14 - LIENS.	 	15
	 	 	 	 
	14.1	No Liens	 	14
	 	 	 	 
	14.2	Tenant's Obligations	 	15
	 	 	 	 
	14.3	Removal of Liens	 	15
	 	 	 	 
	SECTION 15 - INSURANCE.	 	15
	 	 	 	 
	15.1	Project Insurance	 	15
	 	 	 	 
	15.2	Tenant's Property	 	16

 

    	iii

    	 

     

	15.3	Tenant's Operations	 	16
	 	 	 	 
	15.4	Certificate of Insurance	 	16
	 	 	 	 
	15.5	Insurance Companies	 	16
	 	 	 	 
	15.6	Failure to Procure Insurance	 	17
	 	 	 	 
	15.7	Repair	 	17
	 	 	 	 
	SECTION 16 - DAMAGE OR DESTRUCTION	 	17
	 	 	 	 
	16.1	Tenant Obligations	 	17
	 	 	 	 
	16.2	Lease Termination	 	18
	 	 	 	 
	SECTION 17 – EASEMENTS	 	18
	 	 	 	 
	SECTION 18 – INDEMNIFICATION	 	19
	 	 	 	 
	18.1.	By Tenant	 	19
	 	 	 	 
	18.2	By Landlord	 	19
	 	 	 	 
	SECTION 19 - ASSIGNMENT AND SUBLETTING	 	19
	 	 	 	 
	19.1	Landlord Consent	 	19
	 	 	 	 
	19.2	In Writing	 	20
	 	 	 	 
	19.3	Transfer Limitation	 	20
	 	 	 	 
	19.4	Lease Transfer	 	20
	 	 	 	 
	SECTION 20 - SUBJECT TO MASTER LEASE	 	21

 

    	iv

    	 

     

	SECTION 21 - DEFAULTS BY TENANT.	 	21
	 	 	 	 
	21.1	Event of Default	 	21
	 	 	 	 
	21.2	Re-Enter of Premises	 	23
	 	 	 	 
	21.3	Lease Termination	 	23
	 	 	 	 
	21.4	Reletting	 	23
	 	 	 	 
	21.5	Survival of Liability	 	23
	 	 	 	 
	21.6	Cumulative Remedies	 	24
	 	 	 	 
	21.7	Sublessee Defaults	 	24
	 	 	 	 
	21.8	Repetitive Rent Payment Defaults	 	25
	 	 	 	 
	21.9	Cure Period	 	25
	 	 	 	 
	21.10	Late Charges	 	25
	 	 	 	 
	SECTION 22 - CONDEMNATION	 	25
	 	 	 
	SECTION 23 - TENANT'S WAIVER OF STATUTORY RIGHTS.	 	26
	 	 	 
	SECTION 24 - WAIVER OF PERFORMANCE	 	26
	 	 	 
	SECTION 25 - REMEDIES CUMULATIVE.	 	26
	 	 	 
	SECTION 26 - CONVEYANCE BY LANDLORD	 	26
	 	 	 
	SECTION 27 - NO PERSONAL LIABILITY TO LANDLORD	 	27

 

    	v

    	 

      

	SECTION 28 - ATTORNEYS' FEES	 	27
	 	 	 
	SECTION 29 - PROVISIONS SUBJECT TO APPLICABLE LAW.	 	27
	 	 	 
	SECTION 30 - RIGHT TO CURE TENANTS DEFAULTS	 	27
	 	 	 
	SECTION 31 - NOTICES	 	28
	 	 	 
	SECTION 32 - SIGNS	 	28
	 	 	 
	SECTION 33 - LANDLORD'S INSPECTIONS	 	28
	 	 	 	 
	33.1	Inspection	 	28
	 	 	 	 
	33.2	Presenting for Sale or Lease	 	28
	 	 	 	 
	SECTION 34 - ESTOPPEL CERTIFICATE	 	29
	 	 	 
	SECTION 35 - WAIVER OF TRIAL BY JURY	 	29
	 	 	 
	SECTION 36 - RECORDING	 	30
	 	 	 
	SECTION 37 - SUBORDINATION	 	30

 

    	vi

    	 

     

	SECTION 38 - MISCELLANEOUS	 	30
	 	 	 	 
	38.1	Definition of Tenant	 	30
	 	 	 	 
	38.2	Tenant	 	30
	 	 	 	 
	38.3	Gender and Number	 	30
	 	 	 	 
	38.4	Modifications and Waivers	 	30
	 	 	 	 
	38.5	Implied Warranties	 	31
	 	 	 	 
	38.6	Binding Effect	 	31
	 	 	 	 
	38.7	Severability	 	31
	 	 	 	 
	38.8	Governing Law and Jurisdiction	 	31
	 	 	 	 
	38.9	Entire Agreement	 	31
	 	 	 	 
	38.10	Time is of the Essence	 	32
	 	 	 	 
	38.11	Brokers	 	32

 

    	vii

    	 

     

CANYON PORTAL II, L.L.C.

 

LEASE

 

SECTION 1 - FUNDAMENTAL LEASE PROVISIONS.

 

	Landlord:	Canyon Portal H, L.L.C., an Arizona limited liability company
	 	 
	Tenant:	Orchards Inn & Restaurant, LLC, an Arizona limited liability company
	 	 
	Trade Name:	N/A
	 	 
	Lease Term:	Commencement Date: May 1, 2010
	 	 
	 	Termination Date:     December 31, 2020
	 	 
	Premises:	
        Suite 12A of the Trading Post Shops Building
        as reflected on Exhibit A attached hereto containing approximately 553 square feet. 

         

	 	 
	Minimum Rent:	The Minimum Base Monthly Rent for the period May 1, 2010 through December 31, 2010 is One Thousand Three Hundred Thirteen Dollars and Seventy One Cents ($1,313.71). Thereafter on January 1 of each year Minimum Rent shall be subject to adjustment as set forth in Section 5.1 of this Lease. Rent is due and payable in advance on or before the first day of each month.
	 	 
	 	Upon execution of this Lease the first month's rent will be paid by Tenant to Landlord.

 

	Common Area Proportionate Share:	Based upon square footage.
	 	 
	Security Deposit Amount:	No Security Deposit is required

 

	Address of Landlord:	
        Canyon Portal II, L.L.C.

        270 N. State Route 89A, Suite 11

        Sedona, AZ 86336

        Telephone: (480) 941-0221

        Fax: (480) 990-9093

 

    	 

    	 

     

	Address to which Rent Payments
	should be sent:	 
	 	Canyon Portal II LLC
	 	P.O. Box Dept 848998
	 	Los Angeles, CA 90084-8998
	 	 
	 	With a copy of the check mailed to Landlord at Landlord's address; or the copy may instead by faxed to Landlord at Landlord's fax number; or, the copy may instead be emailed to claire@sedona-center.com.
	 	 
	Address of Tenant:	Orchards Inn & Restaurant LLC
	 	254 N. State Route 89A
	 	Sedona, AZ 86336
	 	 
	Only Permitted Uses:	Storage facilities and office for housekeeping department of Orchards Inn.
	 	 
	Guarantors:	None

 

The foregoing Fundamental
Lease Provisions are an integral part of this Lease, and each reference in the body of the Lease to any Fundamental Lease Provision
shall be construed to incorporate all of the terms set forth above with respect to such Provisions.

 

SECTION 2- PREMISES.

 

Subject to the conditions
set forth herein, Landlord hereby leases to Tenant the Premises. A site plan showing the boundaries of the Premises and its relative
location within a larger commercial development comprised of four elements including the Trading Post Shops, Canyon Portal Shops,
North Retail Building, and Orchards Annex (the "Project") is attached hereto as Exhibit A. Tenant's acceptance of the
Premises and Agreement to the terms of this Lease are not conditioned upon any representation by Landlord of the number of square
feet in the Premises. Tenant is already in possession of the Premises and Tenant's business is continuing uninterrupted.

 

SECTION 3- GENERAL PROVISIONS.

 

3.1           No
Option. The submission of this Lease by Landlord, its agent or representative for examination or execution by Tenant does not
constitute an option or offer to lease the Premises upon the terms and conditions contained herein or a reservation of the Premises
in favor of Tenant, it being intended hereby that this Lease shall become binding upon Landlord only upon Landlord's delivery to
Tenant of a fully executed counterpart hereof.

 

    	2

    	 

     

3.2           Approval
of Financial Statement. None

 

3.3           No
Co-Tenancy Requirement. Landlord reserves the right to effect such tenancies in the Project as Landlord, in the exercise of
its sole business judgment, shall determine to best promote the interest of the Project. Tenant is not relying on the fact, nor
does Landlord represent, that any specific tenant or kind of tenant or number of tenants shall, during the term of this lease,
occupy any space in the Project.

 

3.4           Name
Change of the Project. Landlord reserves the right to change the name of the Project from time to time during the term of this
Lease.

 

SECTION 4 - LEASE TERM

 

4.1           Term.
The term of this Lease (herein called the "Lease Term" or the "Term") shall commence on the Commencement Date
and shall continue until the Termination Date, unless the Term is terminated sooner or extended as hereinafter provided.

 

4.2           Delay
in Commencement. INTENTIONALLY DELETED.

 

4.3           Holding
Over. If Tenant, upon expiration or termination of this Lease, either by lapse of time or otherwise, remains in possession
of the Premises with Landlord's written consent, but without a new lease reduced to writing and duly executed, Tenant shall be
deemed to be occupying the Premises as a tenant from month to month, subject to all covenants, conditions and provisions
of this Lease. If Tenant remains in possession without Landlord's written consent, Tenant shall be deemed to be in wrongful hold
over and shall be subject to all the rights and remedies provided to Landlord under this Lease and by law, including but not limited
to forcible entry and detainer actions or other eviction processes. During any hold over period, whether with consent or wrongful,
the monthly rent shall be two hundred percent (200%) of Tenant's monthly rent payable during the last month of the Term of this
Lease.

 

4.4           Abandonment.
If Tenant, prior to the expiration of this Lease, relinquishes possession of the Premises without Landlord's written consent, such
relinquishment shall be deemed to be an abandonment of the Premises and an Event of Default under this Lease.

 

    	3

    	 

     

4.5           Surrender
of Premises. Upon any termination of this Lease for any reason, Tenant shall immediately surrender possession of the Premises
to Landlord in good and tenantable repair, reasonable wear and tear excepted, and shall surrender all keys and all copies of such
keys for the Premises to Landlord at the place then fixed for the payment of rent or other agreed upon location.

 

4.6           Extension
of Term. Provided that (i) this Lease is in full force and effect; (ii) Tenant is in possession of the Premises; and (iii)
Tenant has not been and is not in default under this Lease, Tenant shall have the right and option to further extend the Term of
this Lease for three (3) additional successive periods each of five (5) years. Such Extension of Term must be documented in either
an Amendment to Lease or an entirely new Lease which will be signed by Landlord and Tenant. The tenancy resulting from the exercise
of this option shall be upon the same terms and conditions as set forth in this Lease, except Minimum Rent shall be adjusted upward
by Landlord in the first year of the option period based upon the prevailing market rates (Market Rent) for retail rents in the
Project (as defined in Section 2). Thereafter, for years 2, 3, 4 and 5 Rent shall Increase as set forth in Paragraph 5.1(B) of
this Lease. The option may be exercised only upon written notice thereof to Landlord at least six (6) months prior to the Termination
Date of this Lease. Within sixty (60) days after exercise of this option, Landlord shall, in writing, notify Tenant of the
Minimum Annual Base Rental during the first year of the Extension Term. If Tenant fails to exercise any option during the period
when the option is available, or if this Lease was or is in default or is no longer in full force and effect for any reason, the
applicable option shall be void.

 

The first renewal period
shall commence on the date following the originally fixed Termination Date. The second renewal period shall commence on the date
following the Termination Date of the first renewal period. The third renewal period shall commence on the date following the Termination
Date of the second renewal period.

 

SECTION 5 - RENT. SECURITY DEPOSIT AND SALES REPORTS.

 

5.1           Rent.

 

A.           Tenant
shall pay to Landlord the Minimum Rent as set forth in Section 1 under Fundamental Lease Provisions in twelve (12) equal monthly
installments during each. Lease Year, in advance, on the first day of each calendar month. The Minimum Rent and Additional Charges
hereinafter provided for shall be paid in lawful money of the United States to Landlord at its address or at such other place as
Landlord may from time to time designate in writing.

 

    	4

    	 

     

B.           The
Rent provided for in this Section 5.1 shall be subject to adjustment as described herein commencing in the second year of any Option
Period, and for each year thereafter as follows except for the first year of each Option Term, when rent shall be adjusted to Market
Rent. The base for computing the adjustment is the Consumers' Price Index for All Urban Consumers, United States Cities Average
published by the United States Department of Labor, Bureau of Labor Statistics (the "Index"), which is in effect on the
date of the commencement of the first day of the previous Lease year ("Beginning Index"). For example, the adjustment
for year two would be based on the Index for the first day of Lease year one. The Index published most immediately preceding the
Adjustment Date in question ("Extension Index") is to be used in determining the amount of the adjustment. If the Extension
Index has increased over the Beginning Index, the base monthly rent for the following year shall be set by multiplying the base
monthly rent for the previous year, e.g., for the 12th Lease month, by a fraction, the numerator of which is the Extension Index
and the denominator of which is the Beginning Index. However, the adjustment to the rent shall be no less than five percent (5%)
compounded per annum of the base monthly rent provided in this Lease. As an example, if year one monthly rent is $1,000.00 and
the five percent (5%) is applicable each year, then monthly rent for years two through five would be: year two - $1,050.00; year
three- $1,102.50; year four - $1,157.63; and year five - $1,215.51.

 

If the Index is changed
so that the base year differs from that in effect when the Term commences, the Index shall be converted in accordance with the
conversion factor published by the United States Department of Labor, Bureau of Labor Statistics. If the Index is discontinued
or revised during the Term, such other government index or computation with which it is replaced shall be used in order to obtain
substantially the same result as would be obtained if the Index had not been discontinued or revised.

 

C.           Monthly
rent for the first month shall be paid on the date the Term commences. Monthly rent for any partial month shall be prorated at
the rate of one-thirtieth (1/30) of the monthly rent per day.

 

D.           All
rental amounts are "net" rent to Landlord. All Additional Charges (as described in this Lease) shall be deemed rent whether
or not expressly designated as such, and shall be paid in addition to the Minimum Annual Base Rental at the times and in the manner
provided for in this Lease.

 

5.2.          Security
Deposit. None

 

SECTION 6 - NO COUNTERCLAIM OR ABATEMENT OF RENT.

 

6.1           No
Notice. Except as expressly provided herein, monthly rental and Additional Charges and all other sums payable by Tenant shall
be paid without notice, demand, counterclaim, setoff, recoupment, deduction or defense of any kind or nature and without abatement,
suspension, deferment, diminution or reduction. Except as expressly provided herein, Tenant waives all rights now or hereafter
conferred by statute or otherwise to quit, terminate or surrender this Lease or the Premises or any part thereof and to any abatement,
suspension, deferment, diminution or reduction of any sum payable by Tenant to Landlord.

 

    	5

    	 

     

6.2 No Conditional
Payment. NO PAYMENT BY TENANT OR RECEIPT BY LANDLORD OF A LESSER AMOUNT THAN THE TOTAL OF ALL SUMS DUE HEREUNDER SHALL BE DEEMED
TO BE OTHER THAN AN ACCOUNT OF THE EARLIEST STIPULATED RENT, NOR SHALL ANY ENDORSEMENT OR STATEMENT ON ANY CHECK, OTHER PAYMENTS
OR ANY ACCOMPANYING LETTER BE DEEMED AS ACCORD AND/OR SATISFACTION AND LANDLORD MAY ACCEPT SUCH CASH AND/OR NEGOTIATE SUCH CHECK
OR PAYMENT WITHOUT PREJUDICE TO LANDLORD'S RIGHT TO RECOVER THE BALANCE OF SUCH RENT OR PURSUE ANY OTHER REMEDY PROVIDED IN THIS
LEASE OR OTHERWISE, REGARDLESS OF WHETHER LANDLORD MAKES ANY NOTATION ON SUCH INSTRUMENT OF PAYMENT OR OTHERWISE NOTIFIES TENANT
THAT SUCH ACCEPTANCE, CASHING OR NEGOTIATION OF SUCH PAYMENT IS WITHOUT PREJUDICE TO ANY OF LANDLORD'S RIGHTS. TENANT SPECIFICALLY
WAIVES THE PROVISIONS OF A.R.S. 47-1207.

 

SECTION 7 - COMMON AREAS.

 

7.1           Use
of Common Areas. All facilities furnished by Landlord in the Project and designated for the general common use of occupants
of the Project, including Tenant hereunder, its officers, agents, employees and customers, shall at all times be subject to the
exclusive control and management of Landlord. Landlord shall have the right, from time to time, to change the area, level, location
and arrangement of parking areas and other Common Area facilities and to make all rules and regulations pertaining to and necessary
for the proper operation and maintenance thereof. Landlord shall have the exclusive right at any and all times to close any portion
of the Common Areas for the purpose of making repairs, changes or additions thereto; may change the size, area or arrangement of
the Common Areas; and may enter into agreements as Landlord deems appropriate for parking and ingress or egress.

 

7.2           Parking
Policy. Each Tenant shall be allocated one reserved parking space at the Project, determined by square footage of suite, the
location of which may be changed by Landlord from time to time. Tenant shall be responsible for the removal of any vehicle that
is unlawfully parked in the Tenant's reserved parking space. Tenant and its employees shall not park in any parking space that
is designated for another Tenant. Any vehicle that is unlawfully parked in a designated parking space for another Tenant will be
towed at the owner's expense. All employees of Tenant may park at the Project only in parking spaces designated for "Employees"
by the Landlord. In order to restrict the use by Tenant's employees of parking areas designated or which may be designated by Landlord
as customer parking areas, Tenant shall furnish Landlord with the license numbers of any vehicle of Tenant and Tenant's employees
promptly after each request for such information by Landlord.

 

    	6

    	 

     

7.3           Parking
Charges. Landlord will establish a reasonable schedule of fees for all parking spaces in the Project in order to provide parking
for tenants, tourists and periodic visitors to the Project. Notwithstanding anything contained herein to the contrary, Landlord
has the right to meter the parking lot of the Project and charge an hourly fee to anyone who parks a vehicle in the lot. Landlord
reserves the right to regulate the parking at the Project to ensure that the parking lot is used on a long term basis by customers
of the Project and not tenants, employees, or the general public.

 

SECTION 8 - USE OF PREMISES.

 

8.1           Use.
Tenant shall use the Premises solely for the Permitted Uses set forth in the Fundamental Lease Provisions and not for any other
purpose. Tenant shall not use or permit the Premises to be used in violation of the laws, ordinances, regulations and requirements
of the United States, the State of Arizona, Coconino County, the City of Sedona or any subdivision or department thereof or any
other authority or agency having jurisdiction over the Premises or the Project.

 

8.2           Prohibited
Conduct. Except by prior written consent of Landlord, Tenant shall not:

 

A.           Use
or operate any machinery that, in Landlord's opinion, is harmful to the Premises or the Project or disturbing to other tenants
in the building of which the Premises is a part; use any loud speakers, televisions, stereos, radios or other devices in a manner
so as to be heard or seen outside the Premises; or display merchandise on the exterior of the Premises either for sale or for promotional
purposes.

 

B.           Do
or suffer to be done any act, matter or thing objectionable to the fire, casualty or liability insurance carriers whereby any insurance
now in force or hereafter to be placed on the Premises or the Project, or any part thereof, shall become void or suspended, or
whereby the same shall be rated as a more hazardous risk than at the date when Tenant receives possession of the Premises. In case
of a breach of this covenant, in addition to all other remedies of Landlord hereunder, Tenant agrees to pay to Landlord as additional
rent any and all increase or increases of premiums on insurance carried by Landlord on the Premises or the Project.

 

C.           Do
or cause to be done any act, matter or thing in violation of any federal, state, county or local law, statute, regulation, rule
or ordinance.

 

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8.3           Prescribed
Conduct. At all times throughout the Lease Term, Tenant shall:

 

A.           Comply
with any and all requirements of any of the constituted public authorities and with the terms of any state or federal statute or
local ordinance or regulation applicable to Tenant or its use, safety, cleanliness or occupation of the Premises, and save Landlord
harmless from penalties, fines, costs, expenses or damages resulting from Tenant's failure to do so.

 

B.           Give
Landlord prompt written notice of any accident, fire, pest infestation, or damage occurring on or to the Premises.

 

C.           Load
and unload goods at such times in the areas and through such entrances as may be designated for "Delivery" by Landlord.
Such trailers or trucks shall not be permitted to remain parked overnight in any area of the Project, whether loaded or unloaded.
Designated fire lanes shall not be used for the loading or unloading of merchandise, parking or standing of running vehicles at
any time. The unlawful use of such fire lanes may result in the towing of the offending vehicle and subject the owner or user thereof
to all applicable fines established by the City of Sedona and/or Landlord.

 

D.           Conduct
its business in the Premises in all respects in a dignified manner and in accordance with high standards of store operation. Tenant
will not engage in any deceptive marketing, sales efforts or other practices that offend the customers of the Project or its Tenants
or in any way conduct its operations in a "discount sale" manner.

 

E.           Comply
with all reasonable rules and regulations of Landlord in effect at the time of the execution of this Lease or at any time or times,
and from time to time, promulgated by Landlord which Landlord, in its sole discretion, shall deem necessary in connection with
the Premises or the Project including but not limited to both the operation of Tenant's business during certain minimum days and
hours.

 

8.4           Intentionally
Deleted.

 

SECTION 9 - CONSTRUCTION OF IMPROVEMENTS.

 

9.1           Construction.

 

A.           Landlord

 

B.           Tenant

 

9.2           Tenant
Improvements. All Tenant Improvements will be performed by and the cost will be borne by Tenant. Tenant will be responsible
for obtaining all municipal permits and paying all applicable fees.

 

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9.3           Written
Approval. Tenant shall not make or cause to be made any alterations, additions or improvements to the Premises, without first
obtaining Landlord's written approval and consent. Tenant shall present to Landlord plans and specifications for such work at the
time approval is sought. Landlord may condition its approval upon the requirement that Tenant, or its contractor, secure and bear
the cost of a labor and materials payment bond. All alterations, improvements, additions and fixtures made or installed by Tenant
shall remain upon the Premises at the expiration or earlier termination of this Lease and shall become the property of Landlord.

 

9.4           Trade
Fixtures. Tenant shall not cut or drill into or secure any trade fixtures, apparatus or equipment of any kind to any part of
the Premises without first obtaining the written consent of Landlord, which shall not be unreasonably withheld. All furnishings,
equipment and machines installed by Tenant and that are not trade fixtures in the Premises shall remain the property of Tenant
subject to any lien provided Landlord by law and shall be removed at the expiration or earlier termination of this Lease, or any
renewal or extension thereof; provided, Tenant shall not at such time be in default under any covenant or agreement contained in
this Lease and provided further that in the event of such removal, Tenant shall promptly restore the Premises to its original order
and condition. Any such furnishings, trade fixtures, equipment and machines not removed at or prior to such termination of this
Lease shall be and become the property of Landlord.

 

SECTION 10 - TENANT OBLIGATIONS.

 

10.1 Payment by
Tenant. Tenant shall pay and discharge punctually as and when the same shall become due and payable, each and every cost, expense
and obligation of every kind and nature, foreseen or unforeseen, arising out of the possession, operation, maintenance, alteration,
repair, rebuilding, use or occupancy of the Premises. Tenant shall also pay and discharge punctually, as and when the same shall
become due and payable without penalty, personal property, business, occupation and occupational license taxes, water, sewer, electricity
and telephone charges and fees.

 

10.2 Payment by
Landlord. Tenant shall not be required to pay or reimburse Landlord for (i) any local, state or federal capital levy, franchise
tax, revenue tax, income tax, or profits tax of Landlord unless and to the extent such levy, tax or imposition is in lieu of or
a substitute for any other levy, tax or imposition now or later in existence upon or with respect to the Premises which, if such
other levy, tax or imposition were in effect, would be payable by Tenant under the provisions hereof; (ii) any estate, inheritance,
devolution, succession or transfer tax which may be imposed upon or with respect to any transfer (other than taxes
in connection with a conveyance by Landlord to Tenant) of Landlord's interest in the Premises; or (iii) any lien not of record
as of the Commencement Date arising from the unilateral acts or omissions of Landlord and unrelated to a default of Tenant under
this Lease.

 

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10.3 Proof of Payment.
Tenant, upon Landlord's request, shall furnish to Landlord within thirty (30) days thereafter proof of the payment of any obligation
to be paid by Tenant.

 

10.4 Personal Property
Taxes. Tenant shall be responsible for and shall pay before delinquency all taxes levied or assessed against any leasehold
interest or personal property of any kind owned or placed in, upon or about the Premises by Tenant. Tenant hereby agrees to protect
and hold harmless Landlord and the Premises from any liability for Tenant's share of any and all such taxes, assessments and charges
together with any interest, penalties or other charges thereby imposed, and from any sale or other proceedings to enforce payment
thereof, and to pay all such taxes, assessments and charges before delinquency and before same become a lien.

 

10.5 Premises Utilities.
Tenant shall be responsible for any and shall pay for all utilities used or consumed in or upon the Premises as and when the charges
shall become due and payable during the Term. Tenant shall make all appropriate applications to local utility companies and pay
all required deposits. In no event shall. Landlord be liable for any interruption or failure in the supply of any utilities to
the Premises.

 

10.6 Merchants Association.
Tenant agrees that it will become and remain during the entire Term of this Lease a member of a merchants' association, which shall
consist of Landlord and the Tenants of the Project. The purpose of the association shall be the general furtherance of the business
interest of the Project as a whole, including advertising, promotion and special events calculated to the benefit of the Project
and the business of all the tenants located therein. The association shall make its own rules and regulations with respect to such
matters. Tenant's contribution to such association shall be determined by a vote of the association members. Members shall have
the ability to modify or cancel any rules and regulations established by the association by a specific majority vote of the members.
Landlord shall be noticed by mail of any upcoming advertising, promotion, or special events sponsored by the association.

 

SECTION 11 - COMMON AREA MAINTENANCE.

 

11.1 Expenses.
From and after the Commencement Date and continuing for the Term hereof, Tenant shall pay to Landlord, as Additional Rent, Tenant's
"Proportionate Share" of: (i) all costs of operation and maintenance of the Common Areas of the Project; (ii) all Common
Area utilities; (iii) all real estate and assessment taxes levied and assessed against the Project; (iv) all insurance coverage
upon the Project and its operations; and (v) Landlord's management fee. Tenant's Proportionate Share shall be payable in equal
monthly installments at the same time rent is payable hereunder, without demand and without any deduction or set-off whatsoever.

 

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Landlord shall equitably
allocate the foregoing charges among all the occupants of the Project. In making the allocation, Landlord shall reasonably evaluate
the factors that determine the amount of the costs and expenses attributable to Tenant. Tenant's Proportionate Share shall be not
less than the ratio that Tenant's total floor area bears to the total floor area of all the retail buildings (as measured by Landlord)
in the Project which are from time to time completed as of the first day of each calendar quarter.

 

A.           FOR
PURPOSES OF THIS SECTION 11.1:

 

1.          The
cost of operation and maintenance of the common facilities includes all expenditures incurred by or on behalf of Landlord in keeping
and maintaining the foundations, exterior walls, floors and roofs of the Project, all repairs to and replacements of equipment
associated with the Project including, but not limited to, air-conditioning units and the cost of operating and maintaining the
common facilities, including without limitation, the cost of all of Landlord's gardening and landscaping, the current portion of
any assessments against the Project for any purpose, repairs, preventive maintenance, repainting including restriping of parking
lot and access ways, updating and maintenance of directory signs, rental of signs and equipment, lighting, sanitary control, cleaning,
sweeping, removal of ice, snow, trash, rubbish, garbage and other refuse, depreciation over a period of not exceeding sixty (60)
months of machinery, equipment and other assets used in the operation and maintenance of the Project, repair, maintenance or replacement
of onsite water lines, sanitary sewer lines, septic tanks, leach lines and evapotranspiration beds, storm water lines and electrical
lines and equipment serving the property, the cost of police, security and traffic control services, reasonable reserves for anticipated
expenditures, the cost and maintenance and upkeep of the public restroom facilities, marketing and advertising expenditures for
Canyon Portal complex and the cost of all personnel required to supervise, implement and accomplish all of the foregoing, including
but not limited to, on-site management and maintenance personnel.

 

2.          Real
Estate Taxes includes all taxes, assessments and other governmental fees or charges, general and specific, ordinary and extraordinary,
of any kind and nature whatsoever, including but not limited to, assessments for public improvements or benefits, which shall,
during the Term hereof, be assessed, levied, or imposed upon the Project or Landlord or become due or payable.

 

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3.          Insurance
coverage upon the Project and its operations includes the cost of all Landlord's insurance relating to the common facilities of
the Project as a whole or the operations thereon, including, but not limited to: casualty insurance, flood insurance, rent loss
insurance, fire insurance and extended coverage, as well as general liability insurance, umbrella liability insurance, bodily injury,
public liability, property damage liability, automobile insurance, sign insurance and any other insurance carried by the Landlord
in coverage limits selected by the Landlord.

 

4.          Landlord's
Management Fee is comprised of compensation and fees paid by Landlord to an independent management agent or broker for management
of the Project, or if Landlord manages the Project on its own behalf, such fees shall be stipulated to be and computed as four
percent (4%) of the gross rent received by Landlord from all Project Tenants for the fiscal year in question. In addition, the
Manager shall charge and be paid an additional fee of ten percent (10%) of the total of all Common Area Expenses to cover supervision,
administration and overhead of the Project.

 

11.2 Common Area
Expenses Estimates. At the beginning of each calendar year, Landlord shall have the right to prospectively estimate the total
amount of Common Area Expenses anticipated for such year, based on Landlord's experience and the latest available tax information,
and Landlord shall thereafter notify Tenant of the portion of estimated Common Area Expenses which Tenant shall be expected to
pay each month. Within ninety (90) days following the end of the applicable calendar year, Landlord shall furnish Tenant a statement
setting forth the amount of the actual Common Area Expenses for such year, showing in adequate detail the manner in which Tenant's
portion of Common Area Expenses has been computed and the payments made by Tenant for Common Area Expenses during such year. If
the amount collected by Landlord from Tenant for estimated Common Area Expenses exceeds the actual amount of Common Area Expenses
for such year, Landlord shall refund the excess within thirty (30) days or shall apply any credit to the next Common Area Expense
payment to be made by Tenant. If Tenant's payments of estimated Common Area Expenses are less than the total amount of actual Common
Area Expenses for such year, Tenant shall pay the deficiency within thirty (30) days.

 

SECTION 12 - MAINTENANCE AND REPAIRS BY TENANT.

 

12.1 Tenant's Obligation.
Tenant shall keep and maintain in good order, condition and repair (including any such replacement, periodic painting and restoration
as is required for that purpose) the Premises and every part thereof and any and all appurtenances thereto wherever located, including
but not limited to, the exterior and interior portion of all doors, door checks, door locks, windows, plate glass, store front,
all plumbing and sewage facilities within the Premises, all alterations, improvements and installations made by Tenant and any
repairs required to be made due to burglary or other illegal entry into the Premises. Tenant shall maintain and bear the expense
of the light fixtures and bulbs, air-conditioning unit and filters, heating unit or furnace, janitorial services, interior pest
control, and the like.

 

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12.2 Prohibited
Acts. Tenant shall not cause or permit accumulation of any debris or extraneous matter on the roof of the Premises and will
be responsible for any damage caused thereto by any acts of Tenant, its agents, servants, employees or contractors. Tenant shall
place any rubbish, broken down boxes, trash or other excess matter only in such containers as are authorized from time to time
by Landlord; keep the Premises (including all exterior surfaces and both sides of all glass) clean, orderly, sanitary and free
from objectionable odors and from insects, vermin, and other pests; and keep the outside areas and sidewalks immediately adjoining
the Premises clean and free from empty boxes, trash of any kind, ice and any other obstructions or safety hazards.

 

12.3 Rights of Landlord.
If Tenant refuses or fails to commence and complete repairs or maintenance required herein promptly and adequately, Landlord may,
but shall not be required to, make and complete the repairs or perform the maintenance. The cost of such repairs or maintenance
shall be paid immediately by Tenant to Landlord as additional rent upon demand.

 

SECTION 13 - REPAIR BY LANDLORD.

 

13.1 Repair by Landlord.
Landlord shall keep and maintain the foundation, exterior walls, floors and roof of the building in which the Premises are located
(but the same shall be included in the cost of operations and maintenance of the common facilities as defined in Section 11), exclusive
of doors, door frames, door checks, door locks, windows and window frames located in exterior building walls. Landlord shall not,
however, be required to make any such repairs when such repairs are the result of misuse or neglect by Tenant, its agents, employees,
invitees, licensees or contractors. Any repairs required to be made by reason of such Tenant misuse or neglect shall be the responsibility
of Tenant, the above provisions to the contrary notwithstanding. Except as provided herein, Landlord shall have no obligation to
alter or modify the Premises, or any part thereof, or to repair and maintain any plumbing, heating, electrical, air-conditioning
or other mechanical installation in the Premises. Under no circumstances shall Landlord be obligated to repair, replace or maintain
any plate glass or door or window glass no matter what the cause. If Tenant deems that Landlord is in default in any work or repair
to be done by Landlord, the Tenant should give Landlord written notice of such default. Landlord shall have twenty (10) days within
which to cure the default. In no event, however, will rent be abated by Tenant due to any alleged default of Landlord.

 

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13.2 Hazardous Materials.
Exclusive of Hazardous Materials normally associated with Tenant's permitted use, if any, Tenant covenants and agrees not to use,
generate, release, manage, treat, manufacture, store, or dispose of, on, under or about, or transport to or from (any of the foregoing
hereinafter a "Use") the Premises any Hazardous Materials (other than "De Minimis" amounts (as defined below)).
Tenant further covenants and agrees to pay all costs and expenses associated with enforcement, removal, remedial or other governmental
or regulatory actions, agreements or order threatened, instituted or completed pursuant to any Hazardous Materials Laws, and all
audits, tests, investigations, cleanup, reports and other such items incurred in connection with any efforts to complete, satisfy
or resolve any matters, issues or concerns, whether governmental or otherwise, arising out of or in any way related to the Use
of Hazardous Materials in any amount by Tenant, its employees, agents, invitees, subtenants, licensees, assignees or contractors.
For purposes of this Lease (i) the term "Hazardous Materials" shall include but not be limited to asbestos, urea formaldehyde,
polychlorinated biphenyls, automotive and petroleum products and byproducts (including, without limitation, gasoline, diesel
and other fuels, new, used and recycled oil, grease, brake fluid, antifreeze, and other automotive fluids installed in or
recovered from service vehicles or otherwise, and any other fuel additive, derivative, lubricant or byproduct generated, stored
or used in Tenant's business operation or otherwise occurring), pesticides, radioactive materials, hazardous wastes, toxic substances
and any other related or dangerous toxic or hazardous chemical, material or substance defined as hazardous or regulated or as a
pollutant or contaminant in, or the use of or exposure to which is prohibited, limited, governed or regulated by, any Hazardous
Materials Laws; (ii) the term "De Minimis" amounts shall mean, with respect to any given level of Hazardous Materials,
that such level or quantity of Hazardous Materials in any form or combination of forms (a) does not constitute a violation of any
Hazardous Materials Laws; and (b) is customarily employed in, or associated with, similar retail projects in Coconino County, Arizona;
and (iii) the term "Hazardous Materials Laws" shall mean any federal, state, county, municipal, local or other statute,
law, ordinance or regulation now or hereafter enacted which may relate or legislate the protection of human health or the
environment, including but not limited to the Comprehensive Environment Response, Compensation and Liability Act of 1980, 42 U.S.C.
Section 9601, et seq.; the Hazardous Materials Transportation Act, 49 U.S.C. Section 1801, et seq.; the Resource
Conservation and Recovery Act, 42 U.S.C. Section 6901, et  seq.; the Federal Water Pollution Control Act, 33 U.S.C.
Section 1251, et seq.; the Toxic Substances Control Act of 1976, 15 U.S.C. Section 2601, et seq.; Ariz. Rev. Stat.
Ann. Title 49 (The "Arizona Environmental Quality Act of 1986"); and any rules, regulations or guidelines adopted or
promulgated pursuant to any of the foregoing as they may be adopted, amended or replaced from time to time.

 

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SECTION 14 - LIENS. 

 

 

14.1 No Liens. Tenant
shall have no authority to do any act or make any contract which may create or be the basis for any lien, mortgage or other encumbrance
upon any interest of Landlord in the Premises or which would cause any document to be recorded against the Premises or the Project.
Should Tenant cause any construction, alterations, rebuildings, restorations, replacements, changes, additions, improvements or
repairs to be made on the Premises, or cause any labor to be performed or material to be furnished thereon, therein or thereto,
neither Landlord nor the Premises shall under any circumstances be liable for the payment of any expense incurred or for the value
of any work done or material furnished, and Tenant shall be solely and wholly responsible to contractors, laborers
and materialmen for performing such labor and furnishing such material.

 

14.2 Tenant's Obligations.
The initial and any subsequent alterations or improvements made by Tenant to the Premises must be paid for by Tenant when such
alterations or improvements are made. Nothing in this Lease shall be construed to authorize Tenant, or any person dealing with
or under Tenant, to charge the rents of the Premises, or the property and buildings of which the Premises form a part, or the interest
of Landlord in the state of the Premises, with a mechanics' lien or encumbrance of any kind, and under no circumstances shall Tenant
be construed to be the agent, employee or representative of the Landlord in the making of any such improvements or alterations
to the Premises.

 

 

14.3 Removal of
Liens. If, because of any act or omission (or alleged act or omission) of Tenant, any mechanic's, materialman's, or other lien,
charge or order for the payment of money shall be filed or recorded against the Premises or against Landlord (whether or not such
lien, charge or order is valid or enforceable as such), Tenant shall, at its own expense, either cause the same to be discharged
of record pursuant to A.R.S. §33-1004, or otherwise cause such discharge, within ten (10) days after Tenant shall have received
notice of the filing thereof, or Tenant may, within such period, furnish to Landlord a bond satisfactory to Landlord against such
lien, charge or order, in which case Tenant shall have the right in good faith to contest the validity or amount thereof.

 

SECTION 15- INSURANCE.

 

15.1 Project Insurance.
Landlord bears the risk of and may insure as a Common Area Expense as practical or as required by Landlord's Lender, the operation
of the Project as a whole, or the common areas thereof. Such insurance may include, but is not limited to, general liability, umbrella
excess liability, bodily injury, public liability, property damage liability, fire and extended coverage in amounts not less than
eighty percent (80%) of the replacement cost of the Project, sign insurance and the like in coverage limits selected by Landlord.
Tenant shall pay to Landlord its "Proportionate Share" of such insurance as provided in Section 11 above.

 

 

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15.2 Tenants Property.
Tenant agrees that all property owned by it in, on, or about the Premises shall be at the sole risk and hazard of the Tenant. Landlord
shall not be liable or responsible for any loss or damage to Tenant, or anyone claiming under or through Tenant, or otherwise,
whether caused by or resulting from a peril required to be insured hereunder, or from water, gas leakage, plumbing, electricity
or electrical apparatus, pipe or apparatus of any kind, the elements or other similar or dissimilar causes, and whether or not
originating in the Premises or elsewhere, irrespective of whether or not Landlord may be deemed to have been negligent with respect
thereto, and provided such damage or loss is not the result of any intentional and wrongful act of Landlord. Tenant shall require
all policies of risk insurance carried by it on its property in the Premises to contain or be endorsed with the provision in and
by which the insurer designated therein shall waive its right of subrogation against Landlord.

 

15.3 Tenant's Operations.
All operations conducted by Tenant shall be at Tenant's sole risk. In addition, Tenant shall procure insurance for its operations
as follows:

 

A.   Tenant
shall keep in force at its own expense public liability insurance and comprehensive general liability insurance, including contractual
liability insurance sufficient to cover all phases and aspects of the operation and conduct of its business, with minimum limits
of $2,000,000.00 on account , of bodily injuries to or death of one person and $3,000,000.00 on account of bodily injuries to or
death of more than one person as a result of any one accident or disaster, and $2,000,000.00 as a result of damage to property.

 

B.   Tenant
shall keep and maintain in force during the Term hereof, plate glass insurance upon windows and doors in the Premises as required
by Landlord unless Landlord maintains such insurance on behalf of all Tenants and treats it as a Common Area Expense.

 

15.4 Certificate
of Insurance. Tenant shall provide annually to Landlord a Certificate of Insurance listing Landlord as an additional named
insured and Barrett Realty LLC as an additional named insured under the Tenant's policy of insurance.

 

15.5. Insurance
Companies. The policies affording the insurance required by this Lease shall be with companies (rated A[minus] VII or better,
A. M. Best's Key Rating Guide) authorized to do business in the State of Arizona and shall be in a form reasonably satisfactory
to Landlord, shall provide replacement cost coverage, shall name Landlord as an additional insured, and shall provide for payment
of loss thereunder to Landlord and Tenant as their interests, may appear. The policies or certificates evidencing such insurance
shall be delivered to Landlord on or before the Commencement Date and renewals thereof shall be delivered to Landlord at least
thirty (30) days prior to the expiration dates of the respective policies. Alternatively, the insurance required by this Section
15 may be provided under a blanket policy to the Tenant's existing insurance policy.

 

 

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15.6. Failure to
Procure Insurance. In the event Tenant shall fail to procure insurance required under this Lease or fail to maintain the same
in force continuously during the Term, or any extension thereof, Landlord shall be entitled to procure such insurance and Tenant
shall, upon demand, immediately reimburse Landlord for such premium expense or Landlord may declare Tenant in default under this
Lease.

 

15.7 Repair.
In the event of loss under any such policy or policies, Tenant shall promptly proceed with the repair and restoration of the damaged
or destroyed improvements in accordance with Section 16 of this Lease. The insurance proceeds, if less than $20,000.00, shall be
paid to Tenant for application to such repair, restoration or remediation, so long as (a) Tenant is not then in default under this
Lease, and (b) Tenant expressly covenants in writing with Landlord to expend such funds for the repair, restoration or remediation
of the Premises and the improvements therein, and to furnish Landlord with documentation evidencing such expenditure of funds for
work and improvements incorporated in the Premises within thirty (30) days following completion of such repair, restoration or
remediation. If the insurance proceeds exceed $20,000.00, the same shalt be paid to and held in trust by the Landlord pursuant
to Section 16 of this Lease. All insurance proceeds described in this Section 15.7 shall be paid upon architects' certificates
and contractors', subcontractors' and materialmen's waivers of lien for the cost and expense of repair, restoration or remediation
of the damage. If at any time such insurance proceeds shall be insufficient to pay fully the cost of completion of such repair,
restoration or remediation, Tenant shall upon demand of Landlord pay a sufficient portion of such cost so that it shall appear
to the reasonable satisfaction of Landlord that the amount of insurance money in the hands of Tenant or Landlord, as applicable,
shall at all times be sufficient to pay for the completion of the repairs, restoration or remediation free and clear of all liens.
Upon the completion of the repairs, restoration or remediation, free and clear of all liens, any surplus of insurance monies shall
be paid to Tenant, provided that Tenant is not then in default hereunder. In the event that this Lease shall have been terminated
for any default of Tenant under any of the terms and provisions contained in this Lease, all proceeds of insurance in the
hands of Tenant or Landlord and all claims against insurers shall be and become the absolute property of Landlord.

SECTION 16 - DAMAGE OR DESTRUCTION.

 

16.1 Tenant Obligations.
In the event of damage to or destruction of any of the improvements on the Premises by fire or other casualty, Tenant shall
give Landlord immediate notice thereof and shall, at Tenant's own expense and whether or not the insurance proceeds are sufficient
for the purpose, promptly commence and thereafter diligently pursue completion of the repair, restoration or rebuilding of the
same so that upon completion of such repairs, restoration or rebuilding, the value and rental value of the improvements shall be
substantially equal to the value and rental value thereof immediately prior to the occurrence of such fire or other casualty. Tenant
hereby expressly waives any statutory right to terminate this Lease in the event of damage or destruction of the Premises or all
or any portion of the buildings or improvements thereon.

 

 

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16.2 Lease Termination.
Notwithstanding anything to the contrary contained herein, if the Premises should be rendered untenantable by fire or other casualty
during the last two (2) years of the Term to the extent of fifty percent (50%) or more of the replacement cost of the Premises,
Tenant shall have the option to terminate this Lease by notice to Landlord within sixty (60) days after the occurrence of such
damage or destruction. Upon termination, this Lease and the Term hereof shall cease and come to an end as of the effective date
of such notice (which shall be not less than thirty (30) nor more than ninety (90) days after the notice and shall be specified
in the notice). Any unearned rent or other charges shall be apportioned as of the effective date and Tenant shall assign
to Landlord all of its rights to the insurance proceeds arising out of damage or destruction to the improvements and shall pay
Landlord (when the information is ascertained) the difference between the value of the property damaged or destroyed, prior to
the damage or destruction, and the amount, if any, of the insurance proceeds.

 

SECTION 17 - EASEMENTS.

 

Landlord expressly
reserves all rights in and with respect to the use of the Premises as provided herein, including (without in any way limiting the
generality of the foregoing) the rights of Landlord to establish Common Areas and grant parking easements to others and to enter
upon the Premises and give easements to others for the purpose of installing, using, maintaining, renewing and replacing such overhead
or underground water, gas, sewer, and other pipe lines, and telephone, electric and power lines, cables and conduits as Landlord
may deem desirable in connection with the development or use of the other property in the Project or any other property in the
neighborhood thereof, whether owned by Landlord or not.

 

 

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SECTION 18 - INDEMNIFICATION.

 

18.1. By Tenant.
Excepting any responsibility allocated to Landlord by reason of its negligence (excluding from this exception, however, any
responsibility allocated to Landlord by reason of its failure to enforce the terms of this Lease), Tenant shall indemnify, defend
and hold Landlord harmless for, from and against all liabilities, obligations, claims, suits, damages, penalties, causes of action,
costs and expenses (including without limitation, reasonable attorneys' fees and expenses) imposed upon or asserted against Landlord
by reason of the acts or omissions of Tenant, its agents, employees, contractors, suppliers, licensees, invitees and guests and/or
the occurrence of any of the following during the Term: (i) any use, non-use or condition of the Premises or any part thereof;
(ii) any accident, injury to or death of persons (including workmen) or loss of or damage to property occurring on or about the
Premises or any part thereof; (iii) any failure on the part of Tenant to perform or comply with any of the provisions of this Lease;
(iv) performance of any labor or services or the furnishings of any materials or other property in respect of the Premises or any
part thereof (excluding any such matters performed or furnished by or at the request of Landlord and unrelated to a default of
Tenant under this Lease); or (v) any failure on the part of Tenant to clean up and/or dispose of any Hazardous Materials, as described
in Section 13.2 above, in accordance with the requirements of this Lease and applicable law. In the event Landlord should be made
a defendant in any action, suit or proceeding brought by reason of any such occurrence, Tenant shall, at its own expense, resist
and defend such action, suit or proceeding or cause the same to be resisted and defended by legal counsel designated by Tenant
but approved by Landlord. If any such action, suit or proceeding should result in a final judgment against Landlord, Tenant shall
promptly satisfy and discharge such judgment or shall cause such judgment to be promptly satisfied and discharged. The obligations
of Tenant under this Section 18 arising by reason of any such occurrence taking place while this Lease is in effect shall survive
the termination of this Lease.

 

18.2 By Landlord.
Landlord shall save, hold harmless and indemnify Tenant for, from and against all liabilities, obligations, claims, suits, damages,
penalties, causes of action, costs and expenses (including, without limitation, reasonable attorneys' fees and expenses) imposed
upon or asserted against Tenant by reason of the negligence of Landlord or its agents, contractors, servants or employees.

 

SECTION 19 - ASSIGNMENT AND SUBLETTING.

 

19.1 Landlord Consent.
Tenant shall not transfer or assign this Lease' or any interest in this Lease or sublet the Premises or any portion thereof without
first obtaining the written consent of Landlord, which consent may be given or withheld in Landlord's sole discretion; and any
attempted transfer, assignment or subletting, including any involuntary transfers or assignments by operation of law, without such
consent shall be void and confer no rights upon any third person, and at the option of Landlord, shall cause a termination of this
Lease, in which event such third person shall occupy the Premises as a tenant at sufferance. The acceptance of any rent payments
by Landlord from any such alleged assignee shall not constitute approval of the assignment or subletting of this Lease by Landlord.
No transfer, assignment or subletting shall relieve Tenant of its liability for the full performance of all of the provisions,
agreements, covenants and conditions of this Lease. A consent by Landlord to one transfer, assignment or subletting shall not operate
as a waiver of this Section as to any future transfer, assignment or subletting, and this Section 19 shall apply to any transferee,
assignee or subtenant.

 

 

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19.2 In Writing.
Each transfer, assignment, and subletting to which there has been consent shall be by an instrument in writing in form satisfactory
to Landlord, and shall be executed by the transferor, assignor or sublessor; and the transferee, assignee, or sublessee shall agree
in writing for the benefit of Landlord to assume, to be bound by, and to perform the provisions, covenants and conditions of this
Lease to be done, kept and performed by Tenant. One executed copy of such written instrument shall be delivered to Landlord. A
consent to any transfer, assignment or subletting shall not constitute waiver or discharge of the provisions of this paragraph
with respect to a subsequent transfer, assignment or subletting. The acceptance of rent from any other person shall not be deemed
to be a waiver of any of the provisions of this Lease or a consent to the transfer, assignment or subletting of the Premises.

 

19.3 Transfer Limitation.
If Tenant (including any entity later becoming Tenant) is a corporation, unincorporated association, limited liability company
or a partnership, the transfer (other than pursuant to the laws of devise and descent upon the death of a shareholder, partner
or owner), assignment or hypothecation of any stock or interest in such corporation, association, company or partnership in the
aggregate in excess of twenty percent (20%) from the time such entity becomes a Tenant hereunder, shall be deemed an assignment
within the meaning and provisions of this Section 19. The foregoing sentence shall not apply to a corporation of which the capital
stock is publicly traded on a recognized national stock exchange.

 

19.4 Lease Transfer.

 

A.        Tenant
shall pay to Landlord a Lease Transfer Fee (as defined in Section 19.4(8) below) upon the occurrence of any of the following events:
(i) Tenant sells, transfers or assigns (directly, by operation of law or otherwise) its interest in the Lease or in the business
being conducted at the Premises to any other person or legal entity; (ii) a sale, transfer or assignment (directly, by operation
of law or otherwise) of all or any portion of the ownership of stock or ownership interest in the present Tenant entity or any
successor entity (except as allowed by Section 19.3) including but not limited to any sale, transfer or assignment by merger, recapitalization,
reorganization, or restructure; or (iii) Tenant enters into a sublease, license, use or occupancy agreement with any other person
or entity for the leased Premises (items in sub-paragraphs i, ii, and iii are collectively referred to as a "Transfer").
This Lease Transfer Fee is specifically negotiated to compensate Landlord for a Transfer of Premises that Tenant acknowledges is
in short supply in Uptown Sedona, Arizona. Should Tenant, for any reason, reacquire the leased premises after any sale, sublease
or transfer, there will be no "transfer fee" to Tenant upon the reacquisition of the Premises. However, any subsequent
action by Tenant that meets the requirements of items (i), (ii), or (iii) above, shall subject Tenant to a new Transfer Fee. The
offer of Landlord to enter into this Lease is specifically contingent upon Tenant agreeing to pay the Lease Transfer Fee.
Any failure of Tenant to pay a Lease Transfer Fee entitles Landlord immediately, and without notice, to terminate this Lease. The
Lease Transfer Fee is not in substitution of other provisions of this Lease concerning assignment and subletting, which are in
full force and effect.

 

 

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B.   A
Lease Transfer Fee shall be paid by Tenant to Landlord in cash upon the date of the Transfer in the amount of Eleven Thousand Sixty
Dollars ($11,060), with such amount to be increased by a CPI adjustment calculated with the actual CPI.

 

C.  As
a condition of approval of the Transfer, Landlord shall enter into a Lease amendment with the assignee increasing the Minimum Annual
Base Rental to the then-market rental for the Premises, as reasonably determined by Landlord and taking into account the additional
amounts received by Landlord and tenants for rent, key fees, lease assignments or sales of business.

 

D.   Landlord
shall be entitled to review in detail the retail experience, the intended use on the Premises, financial capability and tourist
marketing experience of any assignee to determine if such proposed assignee is suitable as a tenant in the Project. Tenant acknowledges
that Landlord has no obligation to consent to Transfers and that Landlord, after a review of proposed assignee, may reject such
assignee as not suitable for the Project.

 

E.    Tenant
acknowledges that (i) the Lease Transfer Fee is a serious impediment to the Transfer of this Lease or the sale of Tenant's business;
(ii) Landlord has entered into this Lease after carefully choosing Tenant from a number of applicants to lease the Premises;
and (iii) Landlord does not want and will not allow Tenant to Transfer this Lease or sell its business unless the Lease Transfer
Fee provisions are complied with in full.

 

SECTION 20 - SUBJECT TO MASTER LEASE.

 

Tenant acknowledges that
this Lease is subordinate to a Master Lease of the Project among CANYON PORTAL PROPERTIES, L.L.C. and ATHERTON VENTURES, L.L.C.
as Landlord and CANYON PORTAL II, L.L.C., an Arizona limited liability company as Tenant. A Memorandum of Lease is recorded in
Coconino County as Instrument No. 98-21399 on July 2, 1998. An Amendment to Memorandum of Lease is recorded in Coconino County
as Instrument No. 3288292 on October 14, 2004.

 

SECTION 21 - DEFAULTS BY TENANT.

 

21.1 Event of Default. Each of the
following occurrences shall be an Event of Default hereunder:

 

 

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A.   If
Tenant fails to pay any Rent, Additional Charges or any sum due hereunder promptly when due and such failure continues for three
(3) days after the date such payment was due.

 

B.     If
Tenant defaults or breaches any of the other (non-monetary) covenants, agreements, conditions or undertakings herein to be kept,
observed and performed by Tenant and such default continues for ten (10) days after notice thereof in writing to Tenant.

 

C.    TENANT
ACKNOWLEDGES THAT ANY VIOLATION OF ANY OF THE PRESCRIBED CONDUCT AS SET FORTH IN PARAGRAPH 8.3I5 A MATERIAL BREACH OF THIS LEASE.
IF IN ANY TWELVE (12) MONTH PERIOD THERE ARE MORE THAN TWO (2) NOTICES OF VIOLATION OF PARAGRAPH 8.3 SENT BY LANDLORD TO TENANT,
THEN LANDLORD SHALL HAVE THE RIGHT TO TERMINATE THIS LEASE WITHOUT NOTICE.

 

	TENANT'S INITIALS:	AS

  

D.    If
Tenant files any petition under any chapter or section of the Federal Bankruptcy Code or any similar law, state or federal, whether
now or hereafter existing, or shall file an answer admitting insolvency or inability to pay its debts.

 

E.    If
Tenant fails to obtain a stay of any involuntary proceedings under any chapter or section of the Federal Bankruptcy Code within
sixty (60) days after the institution thereof.

 

F.     If
a trustee or receiver is appointed for Tenant or for a major portion of its property or for any portion of the Premises and such
appointment is not vacated and dismissed within sixty (60) days thereafter and in any event prior to any action adverse to the
interest of Tenant or Landlord having been taken by such trustee or receiver.

 

G.     If
any court takes jurisdiction of a major portion of the property of Tenant or any part of the Premises in any involuntary proceeding
for dissolution, liquidation or winding up of Tenant and such jurisdiction is not relinquished or vacated within sixty (60) days.

 

H.    If
Tenant makes an assignment for the benefit of its creditors.

 

I.      If
Tenant fails to occupy and operate the business in the Premises for three (3) consecutive days (except as otherwise allowed under
Section 8.4).

 

 

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21.2 Re-Enter of
Premises. Upon the occurrence of any such Event(s) of Default and at any time thereafter, Landlord shall have the right, at
its election, to reenter the Premises, or any part thereof, either with or without process of law, and to expel, remove and evict
Tenant and all persons occupying or upon the same under Tenant, using such force as may be lawful and necessary in so doing, and
to possess the Premises and enjoy the same as in their former estate and to take full possession of and control over the Premises
and the buildings and improvements thereon and to have, hold and enjoy the same and to receive all rental income of and from the
same. No reentry by Landlord shall be deemed an acceptance of a surrender of this Lease, nor shall it absolve or discharge Tenant
from any liability under this Lease. Upon such reentry, all rights of Tenant to occupy or possess the Premises shall cease and
terminate.

 

21.3 Lease Termination.
Upon the occurrence of any such Event(s) of Default and at any time thereafter, Landlord shall have the right, at its election,
with or without reentry as provided in Section 21.2, to give written notice to Tenant stating that this Lease shall terminate on
the date specified by such notice, and upon the date specified in such notice this Lease and the Term hereby demised and all rights
of Tenant hereunder shall terminate. Upon such termination, Tenant shall quit and peacefully surrender to Landlord the Premises
and the buildings and improvements then situated thereon.

 

21.4 Relettinq.
At any time and from time to time after such reentry, Landlord may re-let the Premises and the buildings and improvements thereon,
or any part thereof, in the name of Landlord or otherwise, for such term or terms (which may be greater or less than the period
which would otherwise have constituted the balance of the Term of this Lease), and on such conditions (which may include concessions
or free rental) as Landlord, in its reasonable discretion, may determine and may collect and receive the rental therefore. However,
in no event shall Landlord be under any obligation to re-let the Premises and the buildings and improvements thereon, or any part
thereof, and Landlord shall in no way be responsible or liable for any failure to re-let or for any failure to collect any rental
due upon any such re-letting. Even though it may re-let the Premises, Landlord shall have the right thereafter to terminate this
Lease and all of the rights of Tenant in or to the Premises. Nothing contained in the foregoing shall be deemed a waiver or relinquishment
by Tenant of any duty imposed by law on Landlord to mitigate its damages.

 

21.5 Survival of
Liability. Unless Landlord shall have notified Tenant in writing that it has elected to terminate this Lease, no such reentry
or action in lawful detainer or otherwise to obtain possession of the Premises shall relieve Tenant of its liability and obligations
under this Lease; and all such liability and obligations shall survive any such reentry. In the event of any such reentry, whether
or not the Premises and the buildings and improvements thereon, or any part thereof, shall have been re-let, Tenant shall pay to
Landlord the entire rental and all other charges required to be paid by Tenant up to the time of such reentry of this Lease, and
thereafter Tenant, until the end of what would have been the Term of this Lease in the absence of such reentry, shall be liable
to Landlord, and shall pay to Landlord, as damages for Tenant's default:

 

 

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A.   The
amount of Minimum Annual Base Rental and additional charges which would be payable under this Lease by Tenant if this Lease were
still in effect, less

 

B.     The
net proceeds of any re-letting, after deducting all of Landlord's expenses in connection with such re-letting, including without
limitation all repossession costs, brokerage commissions, legal expenses, attorneys' fees, alteration costs and expenses of preparation
for such re-letting.

 

Tenant shall be liable
for and pay such damages to Landlord on a monthly basis on the first day of each month and Landlord shall be entitled to recover
from Tenant monthly as the same shall arise. The excess, if any, in any month or months, of the net proceeds described in subparagraph
(B) above actually received by Landlord over the Minimum Annual Base Rental and Additional Charges described in subparagraph (A)
above shall belong to Landlord, provided that such excess shall be credited and applied against Tenant's future obligations arising
under this Section 21.5 as the same become due and payable by Tenant hereunder, and that Tenant shall remain liable for future
deficiencies, as applicable. Notwithstanding any such reentry without termination, Landlord may at any time thereafter, by written
notice to Tenant, elect to terminate this Lease for Tenant's previous breach.

 

21.6 Cumulative
Remedies. Each right and remedy of Landlord provided for in this Lease shall be cumulative and in addition to every other right
or remedy provided for in this Lease or now or hereafter existing at law or in equity or by statute or otherwise; and the exercise
or beginning of the exercise by Landlord of any one or more of such rights or remedies shall not preclude the simultaneous or later
exercise by Landlord of any or all other rights or remedies provided for in this Lease now or hereafter existing at law or in equity
or by statute or otherwise.

 

21.7 Sublessee
Defaults. Any violation of any covenant or provision of this Lease, whether by act or omission, by any sublessee or any other
persons occupying any portion of the Premises under the rights of Tenant shall be deemed a violation of such provision by Tenant
and a default under this Lease. Any such violation shall not be deemed to be a default hereunder if and so long as Tenant in good
faith and at its own expense takes and diligently pursues any and all steps it is entitled to take and which steps if completed
will cure said default.

 

 

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21.8 Repetitive
Rent Payment Defaults. NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH 21.1 HEREOF TO THE CONTRARY, IF IN ANY ONE (1) PERIOD OF
TWELVE (12) CONSECUTIVE MONTHS, TENANT SHALL HAVE BEEN IN DEFAULT IN THE PAYMENT OF RENT HEREIN AT LEAST THREE (3) TIMES AND LANDLORD,
BECAUSE OF SUCH DEFAULTS, SHALL HAVE SERVED UPON TENANT WITHIN SUCH TWELVE (12) MONTH PERIOD THREE (3) OR MORE NOTICES OF LATE
PAYMENT, THEN THE FOURTH DEFAULT SHALL BE DEEMED TO BE A NON-CURABLE DEFAULT AND LANDLORD SHALL BE ENTITLED TO IMMEDIATE POSSESSION
OF THE PREMISES.

 

21.9 Cure Period.
Notwithstanding any other provision of this Section, Landlord and Tenant agree that if the default complained of, other than for
the payment of monies, is of such a nature that the same cannot be cured within the twenty (20) day period for curing as specified
in the written notice relating thereto, then such default shall be deemed to be cured by the other party within such period of
twenty (20) days if the other party shall have commenced thereof and shall continue thereafter with all due diligence to effect
such cure and does so complete the same with the use of such diligence as aforesaid.

 

21.10 Late Charges.
A late charge in the amount of ten percent (10%) of the delinquent payment shall be assessed to any payment required to be made
by Tenant to Landlord under the terms of this Lease not received by Landlord within three (3) days after its due date (regardless
of whether Tenant has been given notice of such failure of payment). If Tenant tenders to Landlord a check that is returned marked
"NSF" or its equivalent, Tenant shall pay Landlord a payment in the amount of twenty percent (20%) of the amount of such
non-negotiable check. Tenant's failure to pay any such late charge within three (3) days after Landlord's written demand therefor
shall constitute an Event of Default hereunder. In addition to the payments set forth in the preceding two sentences, Tenant shall
pay Landlord interest at the rate of eighteen percent (18%) per annum from the date any payment is due until the date such payment
is actually received by Landlord.

 

SECTION 22 - CONDEMNATION.

 

If title to all or
any portion of the Premises is taken by a public or quasi-public authority under any statute or by right of eminent domain of any
governmental body, whether such loss or damage results from condemnation of part or all of the Premises, Tenant shall not be entitled
to participate or receive any part of the damages or award except where the same shall provide for Tenant's moving or other reimbursable
expenses, the portion thereof allocated to the taking of Tenant's trade fixtures, equipment and personal property or to a loss
of business by Tenant. Should any power of eminent domain be exercised after Tenant is in possession, such exercise shall not void
or impair this Lease unless the amount of the Premises so taken substantially and materially impairs the usefulness of the Premises
for the purposes for which they are leased in which case, either party may cancel this Lease by notice to the other within sixty
(60) days after such possession. Should only a portion of the Premises be taken and the Premises continue to be reasonably suitable
for Tenant's use, the rent shall be reduced from the date of such possession in direct proportion to the reduction in the square
footage of the Premises. Notwithstanding the language of this Paragraph, Tenant shall be allowed to separately litigate its damages
for loss of its business as a result of any condemnation.

 

 

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SECTION 23 - TENANTS WAIVER OF STATUTORY RIGHTS.

 

In the event of any
termination of the Term (or any repossession of the Premises), Tenant so far as permitted by law, waives (i) any notice of reentry
or of the institution of legal proceedings to that end; and (ii) the benefits of any laws now or hereafter in force exempting property
from liability for rent or for debt.

 

SECTION 24 - WAIVER OF PERFORMANCE.

 

No failure by Landlord
or Tenant to insist upon the strict performance of any term or condition hereof or to exercise any right, power or remedy consequent
upon a breach thereof and no submission by Tenant or acceptance by Landlord of full or partial rent during the continuance of any
such breach shall constitute a waiver of any such breach or of any such term. No waiver of any breach shall affect or alter this
Lease (which shall continue in full force and effect), or the respective rights of Landlord or Tenant with respect to any other
then-existing or subsequent breach.

 

SECTION 25 - REMEDIES CUMULATIVE.

 

Each right, power
and remedy provided for in this Lease now or hereafter existing at law, in equity or otherwise shall be cumulative and concurrent
and shall be in addition to every other right, power or remedy provided for in this Lease now or hereafter existing at law, in
equity or otherwise; and the exercise or beginning of the exercise of any one or more of the rights, powers or remedies provided
for in this Lease shall not preclude the simultaneous or later exercise of any or all such other rights, powers or remedies.

 

SECTION 26 - CONVEYANCE BY LANDLORD.

 

In the event Landlord
or any successor Landlord shall convey or otherwise dispose of the Premises, it shall thereupon be released from all liabilities
and obligations imposed upon Landlord under this Lease (except those accruing prior to such conveyance or other disposition) and
such liabilities and obligations shall be binding solely on the then owner of the Premises.

 

 

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SECTION 27 - NO PERSONAL LIABILITY TO LANDLORD.

 

Tenant shall look
solely to Landlord's interest in the Premises for the satisfaction of any judgment or decree requiring the payment of money by
Landlord based upon any default under this Lease, and no other property or assets of Landlord, or any partner or member of, or
shareholder in, Landlord, shall be subject to levy, execution or other enforcement procedures for satisfaction of any such judgment
or decree.

 

SECTION 28 - ATTORNEYS' FEES.

 

In the event Landlord
retains an attorney to enforce its rights under this Lease or to bring suit for possession of the Premises, for the recovery of
any sum due hereunder, or for any other relief against Tenant, declaratory or otherwise, arising out of a breach of any term of
this Lease, or in the event Tenant should bring any action for any relief against Landlord, declaratory or otherwise, arising out
of this Lease, the prevailing party shall be entitled to receive from the other party reasonable attorneys' fees and reasonable
costs and expenses, which shall be deemed to have accrued due to the commencement of such action and shall be enforceable whether
or not such action is prosecuted to judgment.

 

SECTION 29 - PROVISIONS SUBJECT TO APPLICABLE LAW.

 

All rights, powers
and remedies provided herein shall be exercised only to the extent that the exercise thereof shall not violate any applicable law
and are intended to be limited to the extent necessary so that they shall not render this Lease invalid or unenforceable under
any applicable law. If any term of this Lease shall be held to be invalid, illegal or unenforceable, the validity of the other
terms of this Lease shall in no way be affected thereby.

 

SECTION 30 - RIGHT TO CURE TENANT'S DEFAULTS.

 

In the event Tenant
shall breach any term, covenant or provision of this Lease, Landlord may at any time, without notice, cure such breach for the
account and at the expense of Tenant. if Landlord at any time, by reason of such breach, is compelled to pay or elects to pay any
sum of money or to do any act that will require the payment of any sum of money, or is compelled to incur any expense, including
reasonable attorneys' fees, incurred in instituting, prosecuting or defending any actions or proceedings to enforce Landlord's
rights under this Lease or otherwise, the sum or sums so paid by Landlord, with all interest, costs and damages, shall be deemed
to be Additional Charges and shall be paid by Tenant to Landlord on the first day of the month following the incurring of such
expenses of the payment of such sums and shall include interest at the rate of eighteen percent (18%) per annum from the date Landlord
makes a payment until Tenant pays such Additional Charges in full.

 

 

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SECTION 31 - NOTICES.

 

Any notice to be given
by Landlord or Tenant shall be given exclusively in writing and delivered in person or by overnight mail service to Landlord or
Tenant, forwarded by certified or registered mail, postage prepaid, or sent via facsimile transmission, to the address indicated
in the Fundamental Lease Provisions, unless the party giving any such notice has been notified, in writing, of a change of address.
Any such notice shall be deemed effective (a) upon receipt or refusal to accept delivery, if personally delivered; (b) on the next
business day following delivery to the overnight courier; (c) in the case of certified mailing, on the date of actual delivery
as shown by the addressee's receipt or upon the expiration of three (3) business days following the date of mailing, whichever
occurs first; or (d) in the case of facsimile transmission, upon receipt (a written confirmation of successful transmission from
the transmitting facsimile machine being prima facie evidence of such receipt).

 

SECTION 32 - SIGNS.

 

Tenant shall not place,
alter, exhibit, inscribe, paint or affix any sign, awning, canopy, advertisement, notice or other lettering on any part of the
outside of the Premises, or of the building of which the Premises is a part, or inside the Premises if visible from the outside,
without first obtaining Landlord's written approval thereof, which shall not be unreasonably withheld, and if so approved, Tenant
shall maintain the same in good condition and repair.

 

SECTION 33 - LANDLORD'S INSPECTIONS.

 

33.1         Inspection.
Landlord reserves the right to, at all reasonable times, by itself or by its duly authorized agents, employees and contractors,
and without notice to go upon and inspect the Premises and every part thereof, to enforce or carry out the provisions of this Lease,
to make, at its option, repairs, installations, alterations, improvements and additions to the Premises or the building of which
the Premises are a part, to perform any defaulted obligation of Tenant or for any other proper purposes. Landlord also reserves
the right to install or place upon or affix to the roof and exterior walls of the Premises: equipment, signs, displays, antennae
and any other object or structure of any kind, provided the same shall not interfere with Tenant's occupancy or materially impair
the structural integrity of the building of which the Premises are a part.

 

33.2 Presenting
for Sale or Lease.         Landlord hereby reserves the right during usual
business hours to enter the Premises and to show the same for purposes of sale, lease or mortgage, and during the last six (6)
months of the term of this Lease, or the extension thereof, to exhibit the same to any prospective tenant, and to display appropriate
signage for such sale or lease. Prospective purchasers or tenants authorized by Landlord may inspect the Premises during reasonable
hours at any time.

 

 

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SECTION 34 - ESTOPPEL CERTIFICATE.

 

Tenant will execute,
acknowledge and deliver to Landlord, within seven (7) days following a written request therefor, a certificate certifying (a) that
this Lease is unmodified and in full force (or, if there have been modifications, that the Lease is in full force and effect, as
modified, and stating the modifications); (b) the dates, if any, to which rent, Additional Charges and other sums payable hereunder
have been paid; (c) that no notice has been received by Tenant of any default which has not been cured, except as to defaults specified
in such certificate; and (d) this Lease is and shall be subordinate to any existing or future deed of trust, mortgage or security
agreement placed upon the Premises or the Project by the Landlord or owner of the Property. Any claim of Tenant in contradiction
of any of the foregoing matters must be set forth with specificity in the certificate. Any such certificate may be relied upon
by any prospective purchaser or encumbrancer of the Premises or any part thereof. Tenant's failure to deliver such certificate
within the time permitted hereby shall be conclusive upon Tenant that this Lease is in full force and effect, except to the extent
any modification has been represented by Landlord, and there are no uncured defaults in Landlord's performance, and that not more
than one month's rent has been paid in advance. In addition, at Landlord's option, after notice to Tenant and expiration of applicable
grace period under this Lease, such failure of Tenant to deliver such certificate shall constitute an Event of Default. Tenant
acknowledges and agrees that the promise to issue such statements pursuant hereto are a material consideration inducing Landlord
to enter into this Lease and that the breach of such promise shall be deemed a material breach of this Lease.

 

SECTION 35 - WAIVER OF TRIAL BY JURY.

 

TENANT HEREBY WAIVES
ALL RIGHTS TO TRIAL BY JURY IN ANY CLAIM, ACTION, PROCEEDING OR COUNTERCLAIM BY EITHER LANDLORD OR TENANT AGAINST EACH OTHER ON
ANY MATTERS ARISING OUT OF OR IN ANY WAY CONNECTED WITH THIS LEASE, THE RELATIONSHIP OF LANDLORD AND TENANT, AND/OR TENANT'S USE
OR OCCUPANCY OF THE LEASED PREMISES. TENANT AGREES THAT EXCLUSIVE JURISDICTION FOR ALL LEGAL ACTIONS SHALL BE COCONINO COUNTY SUPERIOR
COURT.

 

 

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SECTION 36 - RECORDING.

 

 

Neither this Lease
nor a memorandum thereof, may be recorded, or otherwise made public, by any means, without the express written consent of Landlord.
Any such recording or publication without such consent, shall, at Landlord's option, cause this Lease and all rights of Tenant
hereunder, to be immediately forfeited and of no further force and effect, provided, however, that Landlord shall have the right
to such action against Tenant, for damages resulting from such recording, as Landlord shall be entitled to by law.

 

SECTION 37 - SUBORDINATION.

 

This Lease is hereby
declared to be subject and subordinate to the lien of any present or future encumbrance or encumbrances upon the Premises or the
Project, irrespective of the time of execution or the time of recording of any such encumbrance or encumbrances. Landlord shall
use its good faith efforts to obtain for Tenant an attornment and non-disturbance agreement from any lender which has a lien on
the Premises. This subordination is subject to the right of Tenant upon a foreclosure or other action taken under any mortgage
by the holders thereof to have this Lease and the rights of Tenant hereunder not be disturbed but to continue in full force and
effect so long as Tenant shall not be in default hereunder. The word "encumbrance" as used herein includes mortgages,
deeds of trust or other similar instruments, and modifications, extensions, renewals and replacements thereof, and any and all
advances thereunder.

 

SECTION 38 - MISCELLANEQUS.

 

38.1 Definition
of Tenant. The Term "Tenant" shall include legal representatives, successors and permitted assigns. All covenants
herein shall be made binding upon Tenant and construed to be equally applicable to and binding upon its agents, employees
and others claiming the right to be in the Premises or in the building or in the building through, under or above Tenant.

 

38.2 Tenant.
If more than one individual, firm, or corporation shall join as Tenant, singular context shall be construed to be plural wherever
necessary and the covenants of Tenant shall be the joint and several obligations of each party signing as Tenant and when the parties
signing as Tenant are partners, it shall be the obligation of the firm and of the individual members thereof.

 

38.3 Gender and
Number. Whenever from the context it appears appropriate, each item stated in the singular shall include the plural and vice
versa and the masculine, feminine, or neuter form shall included the masculine, feminine and neuter forms.

 

38.4 Modifications
and Waivers. No change, modification, or waiver of any provision of this Lease shall be valid or binding unless it is in writing
dated after the date hereof and signed by the parties intended to be bound. No waiver of any breach, term, or condition of this
Lease by either party shall constitute a subsequent waiver of the same or any other breach, term, or condition.

 

 

    	30

    	 

     

38.5 Implied Warranties.
OTHER THAN AS SET FORTH IN THIS LEASE, TENANT AND LANDLORD EXPRESSLY AGREE THAT THERE ARE AND SHALL BE NO IMPLIED WARRANTIES OF
MERCHANTABILITY, HABITABILITY, FITNESS FOR A PARTICULAR PURPOSE OR ANY OTHER KIND ARISING OUT OF THIS LEASE, AND THERE ARE NO WARRANTIES
WHICH EXTEND BEYOND THOSE EXPRESSLY SET FORTH IN THIS LEASE.

 

38.6 Binding Effect.
This Lease shall be binding upon and shall inure to the benefit of the parties and their respective heirs, personal representatives,
successors and assigns. This provision shall not be deemed to grant Tenant any right to assign this Lease or sublet the Premises
or any part thereof other than as provided in this Lease.

 

38.7 Severability.
To the fullest extent possible each provision of this agreement shall be interpreted in such fashion as to be effective and valid
under applicable law. If any provision of this Lease is declared void or unenforceable with respect to particular circumstances,
such provision shall remain in full force and effect in all other circumstances. If any provision of this Lease is declared
void or unenforceable, such provision shall be deemed severed from this Lease, which shall otherwise remain in full force and effect.

 

38.8 Governing Law
and Jurisdiction. Except where preempted by the laws of the United States or the rules or regulations of any agency or instrumentality
thereof, this Lease is to be interpreted, construed and governed by the laws of the State of Arizona. The parties irrevocably and
unconditionally submit to the exclusive jurisdiction of the Superior Court of the State of Arizona for the County of Coconino in
connection with any legal action or proceeding arising out of or relating to this Lease and the parties waive any objection relating
to the basis for personal or in rem jurisdiction or to venue which it may now or hereafter have in any such suit, action or proceeding.

 

38.9 Entire Agreement.
This instrument constitutes the sole and only agreement between Landlord and Tenant respecting the Premises, the leasing of the
Premises to the Tenant, or the Lease term herein specified, and correctly sets forth the obligations of the Landlord and Tenant
to each other as of its date. Any agreements or representations by the Landlord to the Tenant not expressly set forth in this instrument
are void and unenforceable. All prior agreements and understanding of the parties with respect to such subject matter are hereby
superseded. No representations, promises, agreements, or understandings contained in this Lease regarding the subject matter hereof
shall be of any force or effect unless in writing, executed by the party to be bound, and dated on or subsequent to the date hereof.
Captions and headings are for convenience only and shall not alter any provision or be used in the interpretation of this Lease.

 

 

    	31

    	 

     

38.10 Time is of
the Essence. Time is of the essence of this Lease and each and every provision hereof. Any extension of time granted for the
performance of any duty under this Lease shalt not be considered an extension of time for the performance of any other duty under
this Lease.

 

38.11 Brokers. Tenant
represents and warrants that it has not entered into any agreement with, nor otherwise had any dealings with, any broker or agent
in connection or execution of this Lease which could form the basis of any claim by any such broker or agent for a brokerage fee
or commission, finder's fee, or any other compensation of any kind or nature in connection with this Leasehold.

 

 

	LANDLORD:	TENANT:
	 	 
	CANYON PORTAL II, L.L.C.,	ORCHARDS INN & RESTAURANT
	an Arizona limited liability company	LLC., an Arizona corporation
	 	 	 	 	 
	By:	/s/ Al Spector	 	By:	/s/ Al Spector
	 	Al Spector	 	 	Al Spector
	Its:	Manager	 	Its:	Manager

 

 

    	32

    	 

     

 

 

 

List of Exhibits

 

A.        Project Site
Plan

 

 

    	 

    	 

     

 

 

    	 

    	 

     

 

 

 

 

EXHIBIT J

 

LEGAL DESCRIPTION

 

(Schnebly Hill) 

 

THE LAND REFERRED TO HEREIN BELOW IS SITUATED
IN THE COUNTY OF COCONINO,

STATE OF ARIZONA, AND IS DESCRIBED AS FOLLOWS:

 

A tract of land in the Northwest quarter of Section 8, Township
17 North, Range 6 East of the Gila and Salt River Base and Meridian, Coconino County, Arizona, described as follows:

 

COMMENCING at the northeast corner of Lot 1, Mountain Villa
Subdivision as said lot is shown on the map of said subdivision recorded in Case 2, Map 106, Coconino County Records;

 

Thence North 87 degrees, 17 minutes, 30 seconds East, a distance
of 30.00 feet to the East line of Mountain view Drive;

 

Thence along said east line, South 2 degrees, 42 minutes, 30
seconds East, a distance of 36.02 feet to an iron pipe marking the Southwest corner of the BOURKE property as described in Deed
recorded in Book 121, Pages 131-132, Official Records of Coconino

County;

 

Thence along the South line of said Bourke property as staked
on the ground, South 88 degrees 03 minutes 30 seconds East, 70.00 feet to the Point of Beginning for the herein described tract;

 

Thence South 2 degrees, 42 minutes, 30 seconds East, a distance
of 134.58 feet to the Northerly line of Road Dedication recorded in Case 2, Map 29, records of Coconino

County;

 

Thence along said Northerly line from a tangent that bears North
73 degrees, 20 minutes East, along a curve to the left with a radius of 115.43 feet, through an angle of 19 degrees, 39 minutes,
30 seconds, a distance of 39.60 feet to an iron pipe;

 

Thence North 53 degrees, 40 minutes, 30 seconds East, a distance
of 78.45 feet to an iron pipe;

 

Thence North 50 degrees, 52 minutes East, a distance of 13.46
feet (the last two courses being along said Road Dedication line);

 

Thence North 39 degrees, 08 minutes West, a distance of 80.51
feet to said South line of BOURKE property;

 

Thence along said South line, South 73 degrees, 35 minutes,
30 seconds West, a distance of 10.00 feet to an iron pipe;

 

Thence North 88 degrees, 03 minutes, 30 seconds West, a distance
of 54.90 feet to the POINT OF BEGINNING.

 

    	 

    	 

     

 

 

 

 

	3:31 PM	EXHIBIT K-i	 
	04/23/13	Orchards Inn & Restaurant, LLC.	 
	Accrual Basis	Balance Sheet	 
	 	As of March 31, 2013	 

 

	 	 	Mar 31, 13	 
	ASSETS	 	 	 	 
	Current Assets	 	 	 	 
	Checking/Savings	 	 	 	 
	1100 · Alliance Operating Account	 	 	 	 
	1109 · American Express Clearing	 	 	188.23	 
	1110 · Alliance Resort Clearing Acct	 	 	1,844.85	 
	1100 · Alliance Operating Account - Other	 	 	-19,175.46	 
	Total 1100 · Alliance Operating Account	 	 	-17,142.38	 
	 	 	 	 	 
	1105 · Cash on Hand	 	 	3,300.00	 
	Total Checking/Savings	 	 	-13,842.38	 
	 	 	 	 	 
	Accounts Receivable	 	 	 	 
	1200 · Accounts Receivable	 	 	44,428.59	 
	1240 · Note Receivable Orchards Annex	 	 	133,000.00	 
	Total Accounts Receivable	 	 	177,428.59	 
	 	 	 	 	 
	Other Current Assets	 	 	 	 
	1210 · Guest Ledger	 	 	3,781.37	 
	1220 · City Ledger	 	 	32,148.18	 
	1230 · Misc Clearing	 	 	8,812.98	 
	1260 · Package Ledger	 	 	-50.00	 
	1267 · A/R- Flood Insurance Billing	 	 	1,301.00	 
	1270 · Intercompany Accounts	 	 	 	 
	1255 · L'Auberge de Sedona	 	 	2,294,876.05	 
	1257 · Canyon Breeze	 	 	4,362.60	 
	1258 · Open Range	 	 	-1,081.77	 
	1259 · Canyon Portal	 	 	149.70	 
	1259.1 · Amx Merch Fin Inter Co - LA	 	 	651,840.73	 
	1261 · Barrett Realty	 	 	11,904.60	 
	1262 · Barrett Accrued PTO	 	 	337.25	 
	1263 · Spector Offices	 	 	6,878.50	 
	1265 · L'Auberge Orchards	 	 	-3,404,440.13	 
	1272 · Orchards Annex	 	 	-635,962.47	 
	1273 · Orchards Annex Allocation	 	 	808,090.72	 
	1275 · Due from HL	 	 	2,000.00	 
	Total 1270 · Intercompany Accounts	 	 	-261,044.22	 
	 	 	 	 	 
	1300 · Payroll Clearing	 	 	-60,758.26	 
	1400 · Inventories	 	 	 	 
	1421·Inventory-Beer	 	 	3,699.47	 
	1423·Inventory-Liquor	 	 	13,122.28	 
	1424·Inventory-Wine	 	 	1,470.37	 
	1430·Inventory-Food	 	 	11,513.95	 

 

    	Page 1 of 4

    	 

     

	3:31 PM	EXHIBIT K-i	 
	04/23/13	Orchards Inn & Restaurant, LLC.	 
	Accrual Basis	Balance Sheet	 
	 	As of March 31, 2013	 

 

	Total 1400 · Inventories	 	 	29,806.07	 
	 	 	 	 	 
	1500 · Prepaid Expenses	 	 	 	 
	1510 · Prepaid Expense	 	 	31,998.17	 
	1520 · Prepaid Insurance	 	 	3,889.01	 
	1530 · Workers' Comp	 	 	4,314.39	 
	1535 · Prepaid management Fees	 	 	1,044.33	 
	Total 1500 · Prepaid Expenses	 	 	41,245.90	 
	 	 	 	 	 
	Total Other Current Assets	 	 	-204,756.98	 
	 	 	 	 	 
	Total Current Assets	 	 	-41,170.77	 
	 	 	 	 	 
	Fixed Assets	 	 	 	 
	1600 · Buildings	 	 	 	 
	1600.1 · Building additions 2009	 	 	34,498.77	 
	1600.2 · Room Prep after Renovation	 	 	26,936.70	 
	1600.3 · Construction legal & admin cost	 	 	54,711.15	 
	1600.4 · Restaurant Remodel	 	 	147,168.37	 
	1600.5 · Landscaping	 	 	29,062.88	 
	1600 · Buildings - Other	 	 	5,135,365.99	 
	Total 1600 · Buildings	 	 	5,427,743.86	 
	 	 	 	 	 
	1601 · Land	 	 	2,346,000.00	 
	1602 · Acquisition Costs (purchase)	 	 	37,643.94	 
	1605 · Improvements	 	 	703,918.29	 
	1610 · Furniture Fixtures & Equipment	 	 	 	 
	1615 · Artwork	 	 	98.47	 
	1620 · Communications Equipment	 	 	21,551.24	 
	1625 · Computer Equipment	 	 	70,413.00	 
	1630 · Equipment	 	 	186,545.09	 
	1635 · Furniture	 	 	45,251.86	 
	1640 · Guest Room Furnishings	 	 	216,286.14	 
	1645 · Lobby & Public Areas	 	 	2,442.78	 
	1655 · Patio & Pool	 	 	17,832.56	 
	1660 · Signage	 	 	9,324.36	 
	1665 · Software	 	 	15,308.00	 
	1680 · Restaurant Furniture & Fixtures	 	 	133,596.50	 
	1610 · Furniture Fixtures & Equipment - Other	 	 	5,238.29	 
	Total 1610 · Furniture Fixtures & Equipment	 	 	723,888.29	 
	 	 	 	 	 
	1690 · Accumulated Depreciation	 	 	-655,336.44	 
	1700 · Leasehold Improvements	 	 	 	 
	1710 · LH Improvement - Visitor Center	 	 	17,386.55	 
	Total 1700 · Leasehold Improvements	 	 	17,386.55	 

 

    	Page 2 of 4

    	 

     

	3:31 PM	EXHIBIT K-i	 
	04/23/13	Orchards Inn & Restaurant, LLC.	 
	Accrual Basis	Balance Sheet	 
	 	As of March 31, 2013	 

 

	Total Fixed Assets	 	 	8,601,244.49	 
	Other Assets	 	 	 	 
	1803 · Acquis. Costs- post purchase	 	 	21,026.13	 
	1804 · Deferred Financing Costs	 	 	 	 
	1805 · IMH Deferred Financing Costs	 	 	1,986,231.77	 
	1807.1 · Deferred Finance Charges-2011	 	 	156,967.64	 
	Total 1804 · Deferred Financing Costs	 	 	2,143,199.41	 
	 	 	 	 	 
	1990 · Accumulated Amortization	 	 	-32,358.76	 
	Total Other Assets	 	 	2,131,866.78	 
	 	 	 	 	 
	TOTAL ASSETS	 	 	10,691,940.50	 
	 	 	 	 	 
	LIABILITIES & EQUITY	 	 	 	 
	Liabilities	 	 	 	 
	Current Liabilities	 	 	 	 
	Accounts Payable	 	 	 	 
	2000 · Accounts Payable	 	 	189,546.32	 
	Total Accounts Payable	 	 	189,546.32	 
	 	 	 	 	 
	Other Current Liabilities	 	 	 	 
	2100 · Payroll Tax Liabilities	 	 	 	 
	2130 · Garnishment Payable	 	 	299.75	 
	Total 2100 · Payroll Tax Liabilities	 	 	299.75	 
	 	 	 	 	 
	2200 · Other Current Liabilities	 	 	 	 
	2210 · Advance Deposit Liability	 	 	400,013.53	 
	2240 · Refunds Payable	 	 	-112.72	 
	2241 · Unclaimed/Stale payroll checks	 	 	4,360.18	 
	Total 2200 · Other Current Liabilities	 	 	404,260.99	 
	 	 	 	 	 
	2215 · Gift Certificates	 	 	300.00	 
	2300 · Accrued Expenses	 	 	 	 
	2310 · Accrued Payroll	 	 	2,499.99	 
	2315 · Accrued PTO	 	 	6,897.61	 
	2315. T · Accrued PTO- Taos	 	 	9,976.01	 
	2320 · Accrued Workers' Comp	 	 	1,583.00	 
	2330 · Accrued Property Taxes	 	 	2,808.45	 
	2340 · Personal Property Tax	 	 	4,800.00	 
	2300 · Accrued Expenses - Other	 	 	-23,204.14	 
	Total 2300 · Accrued Expenses	 	 	5,360.92	 
	 	 	 	 	 
	2500 · Sales/Use Tax payable	 	 	 	 
	2510 · Sales Tax Rooms	 	 	15,737.95	 

 

    	Page 3 of 4

    	 

     

 

	3:31 PM	EXHIBIT K-i	 
	04/23/13	Orchards Inn & Restaurant, LLC.	 
	Accrual Basis	Balance Sheet	 
	 	As of March 31, 2013	 

 

 

	2520 · Sales Tax	 	 	45,072.59	 
	2530 · Retail Sales Tax	 	 	-623.64	 
	Total 2500 · Sales/Use Tax payable	 	 	60,186.90	 
	 	 	 	 	 
	2600 · Gratuities Payable	 	 	 	 
	2605 · Room Gratuities/Porterage	 	 	424.65	 
	2610 · Restaurant Gratuitites	 	 	119.78	 
	2625 · Service Fees	 	 	-14,483.77	 
	Total 2600 · Gratuities Payable	 	 	-13,939.34	 
	 	 	 	 	 
	Total Other Current Liabilities	 	 	456,469.22	 
	 	 	 	 	 
	Total Current Liabilities	 	 	646,015.54	 
	 	 	 	 	 
	Long Term Liabilities	 	 	 	 
	2700 · Notes Payable	 	 	 	 
	2701 · IMH Note Payable	 	 	9,000,000.00	 
	Total 2700 · Notes Payable	 	 	9,000,000.00	 
	 	 	 	 	 
	Total Long Term Liabilities	 	 	9,000,000.00	 
	 	 	 	 	 
	Total Liabilities	 	 	9,646,015.54	 
	 	 	 	 	 
	Equity	 	 	 	 
	3200 · L'Auberge Orchards, LLC.	 	 	 	 
	3201 · Capital Contributions	 	 	190,000.00	 
	3203 · Consultant Reconciliation -2008	 	 	-90,175.76	 
	Total 3200 · L'Auberge Orchards, LLC.	 	 	99,824.24	 
	 	 	 	 	 
	3900 · Retained Earnings	 	 	770,497.62	 
	Net Income	 	 	175,603.10	 
	Total Equity	 	 	1,045,924.96	 
	 	 	 	 	 
	TOTAL LIABILITIES & EQUITY	 	 	10,691,940.50	 

 

 

    	Page 4 of 4

    	 

     

 

 

	
        3:19 PM

        04/23/13

        Accrual Basis
	
        EXHIBIT K-ii

        L’Auberge de Sedona, LLC.

        Balance Sheet

        As of March 31, 2013
	 

 

 

	 	 	Mar 31, 13	 
	ASSETS	 	 	 
	Current Assets	 	 	 
	Checking/Savings	 	 	 
	1100 · Alliance Operating Account	 	 	 
	1110 · Alliance Resort Clearing Acct	 	 	4,549.52	 
	1100 · Alliance Operating Account - Other	 	 	-16,279.71	 
	Total 1100 · Alliance Operating Account	 	 	-11,730.19	 
	 	 	 	 	 
	1105 · Cash on Hand	 	 	14,000.00	 
	Total Checking/Savings	 	 	2,269.81	 
	 	 	 	 	 
	Accounts Receivable	 	 	 	 
	1200 · Accounts Receivable	 	 	9,086.89	 
	Total Accounts Receivable	 	 	9,086.89	 
	 	 	 	 	 
	Other Current Assets	 	 	 	 
	1210 · Guest Ledger	 	 	-33,123.25	 
	1220 · City Ledger	 	 	27,069.13	 
	1230 · Package Ledger	 	 	-215.40	 
	1240 · 1240-Intercompany Accounts	 	 	 	 
	1242 · SP-LA Art Gallery LLC	 	 	100.00	 
	1243 · Tasting Arizona	 	 	600.00	 
	1255 · Canyon Portal	 	 	843.33	 
	1258 · Open Range	 	 	5,785.51	 
	1259 · Orchards	 	 	-2,301,715.09	 
	1259.1 · AMX Merch Fin - Inter Co - Orch	 	 	-637,811.14	 
	1262 · Barrett Reality	 	 	74,532.49	 
	1263 · Spector Offices	 	 	30,019.63	 
	1265 · L'Auberge Orchards LLC	 	 	3,797,378.51	 
	1267 · H.L. LLC (La Merra)	 	 	275,908.24	 
	Total 1240 · 1240-Intercompany Accounts	 	 	1,245,641.48	 
	 	 	 	 	 
	1269 · A/R Flood Insurance Payment	 	 	-8,662.48	 
	1300 · Payroll Clearing Account	 	 	-292,420.89	 
	1301 · 2011 Clearing	 	 	18,173.93	 
	1400 · Inventories	 	 	 	 
	1415 · Guest Supplies	 	 	5,245.00	 
	1420 · Beverages	 	 	 	 
	1421·Inventory-Beer	 	 	911.85	 
	1423·Inventory-Liquor	 	 	7,326.40	 
	1424·Inventory-Wine	 	 	183,792.93	 
	Total 1420 · Beverages	 	 	192,031.18	 

 

 

    	Page 5 of 5

    	 

     

	
        3:19 PM

        04/23/13

        Accrual Basis
	
        EXHIBIT K-ii

        L’Auberge de Sedona, LLC.

        Balance Sheet

        As of March 31, 2013
	 

 

	 	 	 	 	 
	1430·Inventory-Food	 	 	44,019.15	 
	1490·Inventory-Spa	 	 	 	 
	1491 · Inventory-Spa Retail	 	 	3,833.10	 
	1492 · Inventory-Spa Back Bar	 	 	660.07	 
	Total 1490 · Inventory-Spa	 	 	4,493.17	 
	 	 	 	 	 
	Total 1400 · Inventories	 	 	245,788.50	 
	 	 	 	 	 
	1416 · CD Inventory	 	 	1,000.00	 
	1499 · Undeposited Funds	 	 	600.00	 
	1500 · Prepaid Expenses	 	 	 	 
	1510 · Prepaid Expense	 	 	86,682.20	 
	1515 · Prepaid Advertising	 	 	7,866.49	 
	1516 · Prepaid Marketing	 	 	13,063.21	 
	1520 · Prepaid Insurance	 	 	13,765.56	 
	1530 · Workers' Comp	 	 	58,484.88	 
	Total 1500 · Prepaid Expenses	 	 	179,862.34	 
	 	 	 	 	 
	1607 · Asset Purchase Consultants	 	 	13,009.00	 
	Total Other Current Assets	 	 	1,396,722.36	 
	 	 	 	 	 
	Total Current Assets	 	 	1,408,079.06	 
	 	 	 	 	 
	Fixed Assets	 	 	 	 
	1600 · Buildings	 	 	 	 
	1600.2 · Affordable Housing Units	 	 	439,714.50	 
	1600.5 · Spa Improvements	 	 	125,645.67	 
	1600.7 · Fitness Facility	 	 	29,916.71	 
	1600 · Buildings - Other	 	 	38,311,067.62	 
	Total 1600 · Buildings	 	 	38,906,344.50	 
	 	 	 	 	 
	1600.3 · Acquistion costs - purchase	 	 	38,245.71	 
	1600.4 · Capitalized const interest	 	 	3,763.17	 
	1600.6 · Engineering Office	 	 	5,265.28	 
	1605 · Improvements	 	 	1,207,038.59	 
	1610 · Furniture Fixtures & Equipment	 	 	 	 
	1615 · Artwork	 	 	139,190.46	 
	1620 · Communications Equipment	 	 	62,932.94	 
	1625 · Computer Equipment	 	 	438,490.31	 
	1630 · Equipment	 	 	391,907.98	 
	1635 · Furniture	 	 	931,287.78	 
	1640 · Guest Room Furnishings	 	 	315,288.13	 
	1645 · Lobby & Public Areas	 	 	5,161.04	 
	1655 · Patio & Pool	 	 	56,635.14	 
	1660 · Signage	 	 	12,924.13	 

 

 

    	Page 6 of 5

    	 

     

	
        3:19 PM

        04/23/13

        Accrual Basis
	
        EXHIBIT K-ii

        L’Auberge de Sedona, LLC.

        Balance Sheet

        As of March 31, 2013
	 

 

	 	 	 	 	 
	1665 · Software	 	 	43,341.54	 
	1670 · Linens	 	 	37,461.80	 
	1675 · Uniforms	 	 	-2.37	 
	1680 · Restaurant Furniture & Fixtures	 	 	151,952.97	 
	1685 · China,Glass,Silver,Supplies	 	 	61,335.17	 
	1691 · Rooms Expansion & Renovation	 	 	 	 
	1691A · Valet - Construction Parking Mg	 	 	119,754.22	 
	1691B · Construction-Engineer inspector	 	 	2,330.08	 
	1691C · Room Prep after Renovation	 	 	133,396.47	 
	1691D · Construction/Design Management	 	 	101,134.32	 
	1691E · Landscaping - materials	 	 	192,304.75	 
	1691F · Landscaping - labor	 	 	180,221.98	 
	1691P · Pool Construction Costs	 	 	132,233.85	 
	1691PF · Pool Fencing	 	 	24,773.90	 
	1691PFF · Pool Furniture & Fixtures	 	 	13,405.92	 
	1691PL · Pool Landscape	 	 	14,523.78	 
	1691R · Restaurant Deck	 	 	13,558.71	 
	1691 · Rooms Expansion & Renovation - Other	 	 	423,827.94	 
	Total 1691 · Rooms Expansion & Renovation	 	 	1,351,465.92	 
	 	 	 	 	 
	1610 · Furniture Fixtures & Equipment - Other	 	 	67,191.45	 
	Total 1610 · Furniture Fixtures & Equipment	 	 	4,066,564.39	 
	 	 	 	 	 
	1690 · Accumulated Depreciation	 	 	-729,089.60	 
	1700 · Leasehold Improvements	 	 	 	 
	1710 · LH Improvement - Visitor Center	 	 	31,866.40	 
	Total 1700 · Leasehold Improvements	 	 	31,866.40	 
	 	 	 	 	 
	Total Fixed Assets	 	 	43,529,998.44	 
	 	 	 	 	 
	Other Assets	 	 	 	 
	1599 · Construction In Progress	 	 	81,433.48	 
	1601 · Land	 	 	6,354,000.00	 
	1800 · Deposits	 	 	 	 
	1801 · Lease Deposits	 	 	2,500.00	 
	1800 · Deposits - Other	 	 	6,719.60	 
	Total 1800 · Deposits	 	 	9,219.60	 
	 	 	 	 	 
	1802 · Start-Up Costs - LA Store	 	 	86,115.86	 
	1803 · Acquistion Costs post purchase	 	 	346,296.71	 
	1804 · Deferred Financing Cost	 	 	 	 

	1805 · IMH Deferred Financing Cost	 	 	7,503,837.42	 
	1806 · FCB Deferred Financing Cost	 	 	503,570.00	 
	1807 · Refinancing costs	 	 	77,568.31	 
	1807.1 · Deferred Finance Charges-2011	 	 	308,779.19	 
	Total 1804 · Deferred Financing Cost	 	 	8,393,754.92	 

 

 

    	Page 7 of 5

    	 

     

	
        3:19 PM

        04/23/13

        Accrual Basis
	
        EXHIBIT K-ii

        L’Auberge de Sedona, LLC.

        Balance Sheet

        As of March 31, 2013
	 

 

 

	1808 · Deferred Revenue Discounts	 	 	81,250.00	 
	1990 · Accumulated Amortization	 	 	-5,501.24	 
	Total Other Assets	 	 	15,346,569.33	 
	 	 	 	 	 
	TOTAL ASSETS	 	 	60,284,646.83	 
	 	 	 	 	 
	LIABILITIES & EQUITY	 	 	 	 
	Liabilities	 	 	 	 
	Current Liabilities	 	 	 	 
	Accounts Payable	 	 	 	 
	2000 · Accounts Payable	 	 	1,045,750.89	 
	Total Accounts Payable	 	 	1,045,750.89	 
	 	 	 	 	 
	Other Current Liabilities	 	 	 	 
	2100 · Payroll Tax Liabilities	 	 	 	 
	2130 · Garnishment Payable	 	 	-121.25	 
	Total 2100 · Payroll Tax Liabilities	 	 	-121.25	 
	 	 	 	 	 
	2200 · Other Current Liabilities	 	 	 	 
	2210 · Advance Deposit Liability	 	 	1,528,431.42	 
	2211 · Advance Deposits - Def. Revenue	 	 	81,250.00	 
	2215 · Gift Certificates	 	 	68,781.76	 
	2216 · Gift certs - Tarsadia discount	 	 	-0.16	 
	2240 · Refunds Payable	 	 	165.58	 
	2241 · Unclaimed-Stale payroll Checks	 	 	7,603.04	 
	2245 · Metropolitan Lease Clearing	 	 	3,104.64	 
	Total 2200 · Other Current Liabilities	 	 	1,689,336.28	 
	 	 	 	 	 
	2300 · Accrued Expenses	 	 	 	 
	2310 · Accrued Payroll	 	 	19,287.50	 
	2311 · Accrued Incentive Compensation	 	 	5,000.00	 
	2315 · Accrued PTO	 	 	97,724.64	 
	2330 · Accrued Property Taxes	 	 	27,195.95	 
	2340 · Personal Property Tax	 	 	-6,720.27	 
	2350 · Other Accruals	 	 	-210.99	 
	2300 · Accrued Expenses - Other	 	 	5,416.74	 
	Total 2300 · Accrued Expenses	 	 	147,693.57	 
	 	 	 	 	 
	2500 · Tax Liabilities	 	 	 	 
	2510 · Room Tax	 	 	151,408.69	 
	2520 · Sales Tax	 	 	32,647.53	 
	Total 2500 · Tax Liabilities	 	 	184,056.22	 
	 	 	 	 	 
	2600 · Gratuities Payable	 	 	 	 
	2608 · LA Store Commission	 	 	-3,293.16	 

 

 

    	Page 8 of 5

    	 

     

	
        3:19 PM

        04/23/13

        Accrual Basis
	
        EXHIBIT K-ii

        L’Auberge de Sedona, LLC.

        Balance Sheet

        As of March 31, 2013
	 

 

	 	 	 	 	 
	2610 · Restaurant Gratuitites	 	 	12,486.94	 
	2615 · Banquet Gratuites	 	 	24,207.67	 
	2625 · Service Fees	 	 	47.98	 
	2630 · Spa Gratuities	 	 	-4,697.93	 
	2633 · Wine Commission	 	 	-1,058.39	 
	2634 · Trip Advisor	 	 	487.07	 
	Total 2600 · Gratuities Payable	 	 	28,180.18	 
	 	 	 	 	 
	Total Other Current Liabilities	 	 	2,049,145.00	 
	 	 	 	 	 
	Total Current Liabilities	 	 	3,094,895.89	 
	 	 	 	 	 
	Long Term Liabilities	 	 	 	 
	2700 · Notes Payable	 	 	 	 
	2701 · IMH Note Payable	 	 	60,083,251.89	 
	2702 · FCB Note Payable	 	 	17,626,550.61	 
	2703 · Bank 1440 Note Payable	 	 	242,791.80	 
	2705 · American Express Loan	 	 	-49,164.18	 
	Total 2700 · Notes Payable	 	 	77,903,430.12	 
	 	 	 	 	 
	Total Long Term Liabilities	 	 	77,903,430.12	 
	 	 	 	 	 
	Total Liabilities	 	 	80,998,326.01	 
	 	 	 	 	 
	Equity	 	 	 	 
	3200 · L'Auberge Orchards, LLC.	 	 	 	 
	3201 · Capital Contributions	 	 	810,000.00	 
	3203 · Consultant Reconciliation -2008	 	 	-5,618.62	 
	Total 3200 · L'Auberge Orchards, LLC.	 	 	804,381.38	 
	 	 	 	 	 
	3900 · Retained Earnings	 	 	-20,023,787.10	 
	Net Income	 	 	-1,494,273.46	 
	Total Equity	 	 	-20,713,679.18	 
	 	 	 	 	 
	TOTAL LIABILITIES & EQUITY	 	 	60,284,646.83	 

 

 

    	Page 9 of 5

    	 

    

 

Exhibit R

 

AMENDMENT TO CANYON BREEZE SERVICE
AGREEMENT

 

THIS AMENDMENT TO AGREEMENT (“Amendment”)
is made effective as of May 14, 2013 (“Effective Date”), by and between, Orchards Newco, LLC, a Delaware limited
liability company (“Orchards Newco”) and Sedona Culinary Concepts, LLC, an Arizona limited liability company
(“Concepts”).

 

WHEREAS, Orchards Inn & Restaurant,
LLC, an Arizona limited liability company (“Inn”), Orchards Annex, LLC, an Arizona limited liability company
(“Annex”) and Concepts entered into that certain Agreement dated June 1, 2011 (“Original Agreement”),
as amended by that certain First Amendment to Agreement dated March 1, 2012 (“First Amendment”)(the Original
Agreement and the First Amendment are hereinafter collectively referred to as, the “Agreement”), whereby Concepts
agreed to provide breakfast buffet services to customers of Inn and Annex;

 

WHEREAS, Orchards Newco now owns and operates
the lodging units formerly owned by Inn and Annex (“Lodging Units”);

 

WHEREAS, in connection with the conveyance
of both Inn’s and Annex’s interests in the lodging units, Inn and Annex assigned to Orchards Newco their respective
rights under the Agreement pursuant to that certain Assignment and Assumption Agreement dated May __, 2013, by and between Orchards
Newco and Annex and that certain Assignment and Assumption Agreement between Orchards Newco and Inn;

 

WHEREAS, Orchards Newco and Concepts desire
to further amend the Agreement.

 

NOW, THEREFORE, in consideration of the
foregoing recitals, the mutual promises contained herein, and other good and valuable consideration the receipt and sufficiency
of which is hereby acknowledged, the parties agree as follows:

 

1. First Amendment. The provisions of the First Amendment
are hereby deleted in their entirety.

 

2. Term. Notwithstanding anything in the Agreement to
the contrary, the term of the Agreement shall commence upon the Effective Date and expire May __, 2014 (“Term”);
provided, so long as Orchards Newco owns and operates the Lodging Units, Orchards Newco shall have the right to extend the Term
for successive one-year periods by providing written notice to Concepts on or prior to the end of the then current term.

 

3. Termination. Orchards Newco shall have the right to
terminate the Agreement, for any reason or no reason, by providing written notice to Concepts at least thirty (30) days prior to
such termination.

 

    	 

    	 

     

 

4. Exclusivity. Section 3 of the Original Agreement is
hereby deleted in its entirety. Additionally, Orchards Newco shall have the right, in its sole and absolute discretion, to change
the service, scope and types of breakfast foods offered or any aspect thereof, revise pricing, and temporarily discontinue service
for such period or periods required by Orchards Newco without terminating this Agreement or being in default thereof.

 

5. Ratification. Except as expressly modified by this
Amendment, the Agreement remains unmodified and in full force and effect.

 

[SIGNATURE PAGE FOLLOWS]

 

    	 

    	 

     

 

IN WITNESS WHEREOF, the parties have executed this Amendment
the day and year above first written.

 

	 	Orchards Newco, LLC, a Delaware limited liability company
	 	 
	 	By: IMH Financial Corporation, a Delaware corporation, its sole member

 

	 	By:  	/s/ Steven T. Darak
	 	 	 
	 	 	Steven T. Darak, CFO

 

	 	SEDONA CULINARY CONCEPTS, L.L.C., an Arizona limited liability company

 

	 	By:  	/s/ Al Spector
	 	 	 
	 	 	Al Spector, Manager

 

Amendment to Canyon Breeze Service Agreement
- Signature Page

 

    	 

    	 

     

  

 

    	 

    	 

    

 

Exhibit 1(a)-i

 

HL, LLC (Lamerra)

Contract List

4/25/2013

 

	Company	Type
	 	 
	1 Arizona Waste Water Service	Vericomm alarm service (requested agreement)
	2 McNatt Caretaker Lease	 
	3	 
	4	 
	5	 

 

    	 

    	 

     

  

 

    	 

    	 

     

 

	RE: Information for Okie and Lisa	Page 1 of 5

 

RE: Information for Okie and

Lisa Lexy Vudrag

 

Sent: Friday, January 18, 2013 12:05 PM

To:     Lexy Vudrag; o mcnatt [wilddesertcowboy@yahoo.corn]

Cc:     Al Spector

 

January 18, 2013

 

James Earl ("Okie") McNatt 

Lisa McNatt

361 Velite Drive

Borrego Springs, CA 92004

 

Re: 29 Serene Court, Sedona, AZ 86336 

 

Dear Okie and Lisa:

 

This email is intended to confirm the relationship between
HL LLC, an Arizona limited liability company ("HL") and Okie and Lisa McNatt ("McNatt") for the property owned
by HL located at 29 Serene Court, Sedona, AZ ("Property"). It is agreed as follows.

 

Recitals.

 

1.     The Property is current vacant,
and there is some maintenance that is

necessary from time to time.

 

2.     HL desires to permit McNatt
to live at the property and perform maintenance on the house as and if it becomes necessary.

 

3.     McNatt desires to live at
the property and is willing to perform maintenance from time to time.

 

4.     McNatt will pay no rent to
HL. McNatt will maintain the utilities, including cable, electric, water and phone.

 

It is agreed as follows:

 

https://webmail.sedonacampus.com/owa/?ae=Item&t=IPM.Note&id=RgAA...
4/8/2013

 

    	 

    	 

     

	RE: Information for Okie and Lisa	Page 2 of 5

 

1.     No Rent. McNatt
is not obligated to pay any rent whatsoever to HL for the period of time that McNatt lives at the house. In lieu of the payment
of Rent, McNatt will maintain the property in good condition, normal wear and tear excepted.

 

2.     Term. The term
of McNatt's residency is month-to-month beginning in January, 2013.

 

3.     McNatt Right to Terminate.
Should McNatt choose to move out of the house, McNatt will give HL written notice of not less than thirty (30) days of their
desire to vacate the property.

 

4.     HL Right to Terminate.
HL may, upon no less than thirty (30) days written notice, terminate this Agreement at which time McNatt will make arrangements
to vacate the property and move out by the 30th day following receipt of the notice.

 

Please respond to this email indicating your acceptance and
agreement of the terms and conditions set forth above.

 

Lexy Vudrag

on behalf of HL LLC

 

Lexy Vudrag

Vice President

Sedona Center

6900 E. Camelback Road, #915

Scottsdale, AZ 85251

Phone: (480) 941-0221, x 314

Fax: (480) 990-9093

e: LexyV@sedona-center.com

 

For your records please note that my new email address is LexyV@sedona-center.com.
While I will continue to receive e-mail sent to the old address for the next few months, it is recommended to please change
your records now to

 

https://webmail.sedonacampus.com/owa/?ae=Item&t=IPM.Note&id=RgAA...
4/8/2013

 

    	 

    	 

     

	Re: Information for Okie and Lisa	Page 1 of 6

 

Re: Information for Okie and Lisa 

o mcnatt [wilddesertcowboy@yahoo.com]

 

Sent: Friday, January 18, 2013 2:33 PM

 

To:     Lexy Vudrag

 

Cc:     Al Spector

 

To whom it may concern, James
McNatt and Lisa McNatt accept and agree to the terms and conditions in this email.

 

Thank you,

Lisa McNatt

James McNatt

 

From: Lexy Vudrag <LexyV@sedona-center.com>

To: Lexy Vudrag <LexyV@sedona-center.com>;
o mcnatt <wilddesertcowboy@yahoo.com>

Cc: Al Spector <Al@alspector.net>

Sent: Friday, January 18, 2013 11:05 AM

Subject: RE: Information for Okie and Lisa

 

January 18, 2013 

 

James Earl ("Okie") McNatt Lisa McNatt

361 Velite Drive 

Borrego Springs, CA 92004 

 

Re: 29 Serene Court, Sedona, AZ 86336

 

Dear Okie and Lisa: 

 

This email is intended to confirm the relationship
between HL LLC, an Arizona limited liability company ("HL") and Okie and Lisa McNatt ("McNatt") for the property
owned by HL located at 29 Serene Court, Sedona, AZ ("Property"). It is agreed as follows. 

 

Recitals. 

 

https://webmail.sedonacampus.com/owa/?ae=Item&t=IPM.Note&id=RgAA...
1/18/2013

 

 

    	 

    	 

     

 

 

 

 

EXHIBIT 1(a)-iv

 

CONTRACTS, ACCOUNTS
PAYABLE, ACCOUNTS RECEIVABLE AND DEPOSITS

(170 Schnebly Road)

 

Not included because 170 Schnebly Road did not transfer.

 

 

    	 

    	 

     

    	 

    	 

    

 

 

Exhibit 1(a)-vi

 

List of Contracts, Accounts Payable,
Accounts Receivable and Deposits

Orchards Inn Parking Lease

 

Contracts: NONE

 

Accounts Payable: Rent as
set forth in the Lease for Parking Spaces dated January 1, 2012 by and between Canyon Portal II LLC as Landlord and Orchards Inn
& Restaurant LLC as Tenant and the 1st Amendment thereto dated May 1, 2012, which together constitute the “Lease”

 

Accounts Receivable: NONE

 

Deposits: NONE

 

 

    	 

    	 

     

 

 

 

Exhibit 1(a)-vii

 

List of Contracts, Accounts Payable,
Accounts Receivable and Deposits

Slnagua Plaza Storage Lease

 

Contracts: NONE

 

Accounts Payable: Rent as set forth
in the Lease for Storage Space dated January 1, 2012 by and between Slnagua Plaza II LLC as Landlord and L'Auberge Orchards LLC
as Tenant and the 1st Amendment thereto dated May 1, 2012, which together constitute the "Lease"

 

Accounts Receivable: NONE 

 

Deposits: NONE

 

 

    	 

    	 

     

 

 

 

Exhibit 1(a)-viii

 

List of Contracts, Accounts Payable, Accounts
Receivable and Deposits

Sinagua Plaza Parking Lease

 

Contracts: NONE

 

Accounts Payable: Rent as set forth in
the Lease for Parking Spaces dated January 1, 2012 by and between Sinagua Plaza II LLC as Landlord and L'Auberge Orchards LLC as
Tenant and the 1st Amendment thereto dated May 1, 2012, which together constitute the "Lease"

 

Accounts Receivable: NONE

 

Deposits: NONE

  

 

    	 

    	 

     

 

 

 

Exhibit 1(a)-ix

 

List of Contracts, Accounts Payable,
Accounts Receivable and Deposits

Affordable Housing Lease

 

Contracts: NONE

 

Accounts Payable: Rent as set forth
in the Lease Agreement dated April 1, 2012 by and between Canyon Portal II LLC as Landlord and L'Auberge Orchards LLC as Tenant
for Affordable Housing Units numbered 414, 415, 434 and 435 Lease")

 

Accounts Receivable: Rents received
from Tenants pursuant to the Rent Roll and Lease Agreements which changes from time to time as Tenants move in / out.

 

Deposits: NONE

  

 

    	 

    	 

     

 

 

 

Exhibit 1(a )-x

 

List of Contracts, Accounts Payable, Accounts
Receivable and Deposits 

Temporary Housing Lease

 

Contracts: NONE

 

Accounts Payable: Rent as set forth
in the Lease Agreement dated April 1, 2012 by and between Canyon Portal II LLC as Landlord and L'Auberge Orchards LLC as Tenant
for Temporary Housing Units numbered 418, 419, 436, 437 and 438 ("Lease")

 

Accounts Receivable: Rents received
from Tenants pursuant to the Rent Roll and Lease Agreements which changes from time to time as Tenants move in / out.

 

Deposits: NONE

 

    	 

    	 

     

 

 

 

 

 

Exhibit 1(f)-i

 

Licensesand Permits
(LaMerra Property)

 

Certificate of Registration of Trademark of
LAMERRA.

 

 

    	 

    	 

     

 

 

 

Exhibit 1(f)-ii

 

Licenses and Permits
(L'Auberge Property)

 

	 	1.	Hotel/Motel Liquor License #11033038 issued to Al Spector as Agent for L'Auberge Orchards LLC as Owner.

 

	 	2.	Arizona State Board of Cosmetology License #17071 issued to L'Auberge Spa LLC

 

	 	3.	Arizona Department of state issued Trade Name: L'Auberge Restaurant

 

	 	4.	Arizona Department of state issued Trade Name: Terrace on the Creek

 

	 	5.	Arizona Department of state issued Trade Name: L'Auberge de Sedona

 

	 	6.	Arizona Department of state issued Trade Name: L'Auberge Spa

 

	 	7.	Arizona Department of Revenue Sales Tax License #20339412

 

	 	8.	City of Sedona Sales Tax License (managed by Revenue Discovery System) License #419066

 

	 	9.	Coconino County Health Department License #EHL-4484 for the L'Auberge Restaurant Kitchen

 

	 	10.	Coconino County Health Department License #EHL-4485 for the Bar Area in the Arrivals Building

 

	 	11.	Coconino County Health Department License #EHL-2647 for the Employee Dining Room

 

	 	12.	Coconino County Health Department License EH -5330 for the L'Auberge Spa

  

 

    	 

    	 

     

 

 

Exhibit 1(f)-iii

 

Licenses and Permits
(Orchards Inn Property)

 

	 	1.	Hotel/Motel Liquor License #11033038 issued to Al Spector as Agent for L'Auberge Orchards LLC as Owner.

 

	 	2.	Arizona Department of State issued Trade Name: The Orchards Bar and Grill

 

	 	3.	Arizona Department of Revenue Sales Tax License #20335194

 

	 	4.	City of Sedona Sales Tax License (managed by Revenue Discovery System) License #420413

 

	 	5.	City of Sedona Right of Way Permit #ROW00045

 

	 	6.	Coconino County Health Department License #EHL-4487 for Taos Cantina

 

	 	7.	Coconino County Health Department License #EHL-4488 for the Bar at Taos

 

 

    	 

    	 

     

 

 

 

Exhibit 1(f)-iv

 

Licenses and Permits
(Schnebly Hill Property)

 

NONE 

 

 

    	 

    	 

     

 

 

Exhibit 1(f)-v

 

Licenses and Permits
(Orchards Annex Property)

 

	 	1.	Arizona Department of Revenue Sales Tax License #20513229

 

	 	2.	City of Sedona Sales Tax License (managed by Revenue Discovery System) License #416983

 

 

    	 

    	 

     

 

 

 

 

 

Exhibit 1(f)-vi

 

Licenses and Permits
(Orchards Inn Parking Lease)

 

NONE

 

 

    	 

    	 

     

 

 

 

Exhibit 1(f)-vii

 

Licenses and Permits
(Sinagua Plaza Storage Lease)

 

NONE 

 

 

    	 

    	 

     

 

 

 

Exhibit 1(f)-viii

 

Licenses and Permits
(Sinagua Plaza Parking Lease)

 

NONE 

 

 

    	 

    	 

     

 

 

 

 

Exhibit 1(f)-ix

 

Licenses and Permits
(Affordable Housing Lease)

 

NONE

 

 

    	 

    	 

     

 

 

 

Exhibit 1(f)-x

 

Licenses and Permits
(Temporary Housing Lease)

 

NONE 

 

 

    	 

    	 

     

 

 

 

Exhibit 1(h)

 

List of Existing Leases
as of April 24, 2013:

 

	 	1.	LaMerra Property — Month to Month Lease with Okie and Lisa McNatt

 

	 	2.	L'Auberge Property — NONE

 

	 	3.	Orchards Inn Property - NONE

 

	 	4.	Schnebly Hill Property —

	 	·	Unit A

	 	o	Andre Pena

	 	o	Miguel Ortiz

	 	o	Joel Cuenca

	 	·	Unit B

	 	o	Lizbeth Morales

	 	·	Unit C

	 	o	Brittany Wolfe

 

5.Orchards Annex Property — NONE

 

6.Orchards Inn Parking — NONE

 

7.Sinagua Plaza Storage — NONE

 

8.Sinagua Plaza Parking — NONE

 

9.Affordable Housing —

	 	·	#414/#415

	 	o	Alberto Barrera

	 	o	Gil Hermosillo

	 	·	#434/#435

	 	o	Chester Ford

 

10.Temporary Housing —

	 	·	#418

	 	o	Bruce Campbell

	 	·	#419

	 	o	Vacant

	 	·	#436

	 	o	Vacant

	 	·	#437

	 	o	David Perez

	 	·	#438

	 	o	Hector Hernandez

  

 

    	 

    	 

     

 

 

 

Exhibit 1(m)-i

 

Personal Property
Inventory (LaMerra Property)

 

	 	1.	Large topo map of the subdivision

 

	 	2.	John Deere

 

 

    	 

    	 

     

 

 

 

Exhibit 1(m)-ii

 

L’Auberge Personal Property Inventory

 

 

    	 

    	 

     

 

 

 

 

 

Spa Furniture Inventory

Retail area

2 office chairs

2 round wood display tables

3 white cubed shelves

2 computers

1 chair for guests

1 lamp

1 full mannequin

Agave

1 massage table

1 therapist chair

1 hot towel cabby

1 sanitizer

Pinion

2 massage tables

2 therapist chairs

2 hot towel cabbies

1 side table

Manzanita

2 massage tables

2 therapist chairs

1 hot towel cabby

2 side tables

Sage

1 massage table

1 therapist chair

1 hot towel cabby

Relaxation area

6 chairs

2 side tables

1 beverage station

Mens area

1 bench

Ladies area

1 table outside of entrance

3 stools

Dispenary/Breakroom

1 table

4 chairs

1 microwave

1 computer

1 stool

1 refrigerator

Director's office

1 desk

3 chairs

1 computer

 

    	 

    	 

     

 

 

 

 

RADIOS

 

 

 

	 	 	Department	 	Make	 	FCC ID#	 	Model	 	Serial#	 	MD#	 	Battery Model
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	1	 	Enginerring	 	Motorrola	 	ABZ99FT4056 8364 L	 	CP200	 	018TJR1939	 	AAH50RDC9AA2AN	 	NNTN4497CR 938 AUDJ
	2	 	Enginerring	 	Motorrola	 	ABZ99FT4056 7132 L	 	CP200	 	018THEV698	 	AAH50RDC9AA1AN	 	NNTN4851A 141 AUMA
	3	 	Enginerring	 	Motorrola	 	ABZ99FT4056 6283 L	 	CP200	 	018TGN8890	 	AAH50RDC9AA1AN	 	NNTN4851A 141 AUMA
	4	 	Enginerring	 	Motorrola	 	ABZ99FT4056 5531 N	 	CP200	 	018TFZ3001	 	AAH50RDC9AA1AN	 	NNTN4497CR 045 AU2B
	5	 	Enginerring	 	Motorrola	 	ABZ99FT4056 9205	 	CP200	 	018TKL8033	 	AAH50RDC9AA2AN	 	NNTN4497CR 938 AUDJ
	6	 	Enginerring	 	Motorrola	 	ABZ99FT4056 7132 L	 	CP200	 	018THEV699	 	AAH50RDC9AA1AN	 	NNTN4497CR 932 AUEJ
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	7	 	Enginerring	 	ICOM	 	AFJ277602	 	IC-F24	 	202084	 	 	 	BP-232N
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	8	 	Enginerring	 	BEARCOM	 	AFJ277601	 	IC-F24S	 	1460923	 	202D-277601	 	BP-232N
	9	 	Enginerring	 	BEARCOM	 	AFJ277601	 	IC-F24S	 	1460922	 	202D-277601	 	BP-232N
	10	 	Enginerring	 	BEARCOM	 	AFJ277601	 	IC-F24S	 	1460927	 	202D-277601	 	BP-232N
	11	 	Enginerring	 	BEARCOM	 	AFJ277601	 	IC-F24S	 	1460924	 	202D-277601	 	BP-232N
	12	 	Enginerring	 	BEARCOM	 	AFJ277601	 	IC-F24S	 	1460925	 	202D-277601	 	BP-232N
	13	 	Enginerring	 	BEARCOM	 	AFJ277601	 	IC-F24S	 	1460928	 	202D-277601	 	BP-232N
	14	 	Enginerring	 	BEARCOM	 	AFJ277601	 	IC-F24S	 	1460930	 	202D-277601	 	BP-232N
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	15	 	Enginerring	 	TITAN RADIO	 	R741TR200U2	 	TR200	 	11D20D0299	 	TR200U(2)	 	BL1716
	16	 	Enginerring	 	TITAN RADIO	 	Z5VTR-400U2	 	TR400	 	11N02D0786	 	TR400U	 	11N0203035
	17	 	Enginerring	 	TITAN RADIO	 	Z5VTR-400U2	 	TR400	 	11N02D0790	 	TR400U	 	11N0203038
	18	 	Enginerring	 	TITAN RADIO	 	Z5VTR-400U2	 	TR400	 	11N02D0787	 	TR400U	 	11N0203031
	19	 	Enginerring	 	TITAN RADIO	 	Z5VTR-400U2	 	TR400	 	11N02D0783	 	TR400U	 	11N0203032
	20	 	Enginerring	 	TITAN RADIO	 	Z5VTR-400U2	 	TR400	 	11N02D0782	 	TR400U	 	11N0203037
	21	 	Enginerring	 	TITAN RADIO	 	Z5VTR-400U2	 	TR400	 	11N02D0789	 	TR400U	 	11N0203040
	22	 	Enginerring	 	TITAN RADIO	 	Z5VTR-400U2	 	TR400	 	11N02D0785	 	TR400U	 	11N0203030
	23	 	Enginerring	 	TITAN RADIO	 	Z5VTR-400U2	 	TR400	 	11N02D0784	 	TR400U	 	11N0203050
	24	 	Enginerring	 	TITAN RADIO	 	Z5VTR-400U2	 	TR400	 	11N02D0781	 	TR400U	 	11N0203036
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	25	 	HouseKeeping	 	BEARCOM	 	AFJ277601	 	IC-F24S	 	1460688	 	202D-277601	 	BP-232N
	26	 	HouseKeeping	 	BEARCOM	 	AFJ277601	 	IC-F24S	 	1460921	 	202D-277601	 	BP-232N
	27	 	HouseKeeping	 	BEARCOM	 	AFJ277601	 	IC-F24S	 	113245	 	202D-277601	 	BP-232N
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	28	 	HouseKeeping	 	MOTORROLA	 	ABZ99FT4056 N	 	CP200	 	018TFZ3007	 	AAH50RDC9AA1AN	 	NNTN4497BR 804 AVFJ
	29	 	HouseKeeping	 	MOTORROLA	 	ABZ99FT4056 9205	 	CP200	 	018TKJ7870	 	AAH50RDC9AA2AN	 	NNTN4497CR 939 AUEJ
	30	 	HouseKeeping	 	MOTORROLA	 	ABZ99FT4056 9205	 	CP200	 	018TKJ7943	 	AAH50RDC9AA2AN	 	NNTN4497CR 939 AUEJ
	31	 	HouseKeeping	 	MOTORROLA	 	ABZ99FT4056 5531 N	 	CP200	 	018TFZ2970	 	AAH50RDC9AA1AN	 	NNTN4497BR 645 AVG4
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	32	 	FRONT DESK	 	BEARCOM	 	AFJ277601	 	IC-F24S	 	1460929	 	202D-277601	 	BP-232N
	33	 	FRONT DESK	 	BEARCOM	 	AFJ277601	 	IC-F24S	 	1460689	 	202D-277601	 	BP-232N
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	34	 	FRONT DESK	 	BLACKBOX	 	U7GBLACKBOXU	 	BLACKBOX+U	 	K1517T00930	 	 	 	 
	35	 	FRONT DESK	 	BLACKBOX	 	U7GBLACKBOXU	 	BLACKBOX+U	 	K1517T00924	 	 	 	 
	36	 	FRONT DESK	 	BLACKBOX	 	U7GBLACKBOXU	 	BLACKBOX+U	 	K1517T00927	 	 	 	 
	37	 	FRONT DESK	 	BLACKBOX	 	U7GBLACKBOXU	 	BLACKBOX+U	 	K1517T00928	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	38	 	FRONT DESK	 	MOTOROLA	 	ABZ99FT4056 283 L	 	CP200	 	018TGN8896	 	AAH50RDC9AA1AN	 	NNTN4497BR 730 AVPJ
	39	 	FRONT DESK	 	MOTOROLA	 	ABZ99FT4056 5531 N	 	CP200	 	018TFZ3018	 	AAH50RDC9AA1AN	 	NNTN4497CR 938 AUDJ
	40	 	FRONT DESK	 	MOTOROLA	 	ABZ99FT4056 9205	 	CP200	 	018THJ7941	 	AAH50RDC9AA2AN	 	NNTN4497CR 938 AUDJ

 

 

    	 

    	 

     

 

 

 

LA Kitchen 

Spring 2013

Equipment List

 

	Item	 	Amt.	 	Item	 	Amt.
	5 gal. Clear Lexan	 	19	 	Clear Cambro-Sq.- 2 qt.	 	8
	3 gal. Clear Lexan	 	6	 	Clear Cambro-Sq.- 4 qt.	 	9
	Clear Lexan Lids	 	11	 	Clear Cambro-Sq.- 6 qt.	 	40
	Clear 400 Hotel 	 	2	 	Clear Cambro-Sq.- 8 qt.	 	29
	Clear 600 Hotel 	 	4	 	Clear Cambro-Sq.- 22 qt.	 	22
	Clear Full Hotel Pan Lids	 	47	 	Clear Cambro Rnd. 6 qt	 	2
	Clear 1/2 Hotel Pan Lids	 	12	 	Clear Cambro Rnd. 3 qt	 	8
	Metal 200 Full	 	29	 	Sm Aluminum Sauté pan 	 	67
	Metal 200 Full Perferated	 	14	 	Med Aluminum Sauté pan 	 	12
	Metal 400 Full	 	13	 	Blk Steal Pand Sm 	 	9
	Metal 600 Full	 	12	 	Blk Steal Pand lg 	 	9
	Metal 900 Full	 	2	 	Stock pot lg 	 	4
	Metal 200 1/2	 	33	 	Stock  pot med 	 	3
	Metal 200 1/2 - Oval Insert	 	2	 	Ice Tray - Brunch	 	2
	Metal 400 1/2	 	11	 	Brunch Display Racks	 	4
	Metal 600 1/2	 	12	 	Brunch Risers	 	13
	Metal 400 1/3	 	27	 	Salad Bowl Risers	 	3
	Metal 600 1/3	 	16	 	Speed Carts 	 	15
	Metal 1/6 	 	69	 	Vita mix blender 	 	3
	Plastic  1/6 	 	19	 	Vita mix blender  top	 	4
	Metal 1/9 	 	51	 	Flour bins 	 	5
	Plastic 1/9 	 	61	 	Toaster 	 	1
	Yin / Yang Full 200	 	4	 	Panini Press 	 	1
	Round Chafers	 	2	 	Robocoup 	 	1
	Round Chafers - Inserts	 	5	 	Microwave 	 	4
	Rectangle Chafers	 	6	 	Kryovac Machine 	 	1

 

    	 

    	 

     

	Item	 	Amt.	 	Item	 	Amt.
	Soup Chafer	 	1	 	Paper towel dispensers 	 	6
	2" Sheet Size Lexan	 	13	 	Coffee Dispeners-2 ga.	 	7
	4" Sheet Size Lexan	 	2	 	Coffee Dispeners-Airpots	 	7
	6" Sheet Size Lexan	 	1	 	Chrome Serving Tray Square	 	6
	9" Sheet Size Lexan	 	3	 	Metal Round Serving Tray	 	12
	4" Perf. Sheet Size Lexan	 	8	 	Lg. Oval Service Tray-Plastic	 	4
	Sheet Size Lexan - Lid	 	4	 	Sm. Cocktail Service Tray	 	3
	Pots sm 	 	7	 	Apple Peeler	 	1
	Pots med 	 	6	 	Med. Reach In Fridge 3' x 9'	 	2
	Pots Lg 	 	3	 	Rubbermade Chest 10 gal.	 	3
	Army pans 	 	2	 	Bar Condimment Tray	 	3
	sheet pans 1/2 	 	25	 	Chrome Water Pitchers	 	10
	sheet pans full 	 	149	 	Rectangle Room Service Tray	 	6
	Pie Pans	 	25	 	Banquet Chaffers	 	5
	Cutting Board	 	4	 	Baskets, Lg.	 	5
	China Cap 	 	3	 	Baskets, Sm.	 	7
	Cutting Board plastic white 	 	15	 	Metal Wire Baskets	 	8
	China Cap 	 	4	 	Metal Bowl / Basket Stads	 	2
	Metro Rack Produce 	 	8	 	Rubbermade Carts	 	3
	Metro Rack Meat	 	3	 	Dolly	 	3
	Metro Rack dairy 	 	3	 	Glass Racks	 	35
	Metro Rack Dish 	 	5	 	Glass Rack Dollies	 	4
	Metro Rack Banquets	 	7	 	Metal Bread Holders	 	1
	Stainless Steel Bowls 	 	25	 	Window fan	 	1
	Resting Racks full 	 	10	 	Rubber made Closet Pastry	 	1
	Resting Racks 200	 	11	 	Flour Tamis	 	1
	Resting Rack 1/2 200	 	8	 	Mini Metro Shelf	 	1
	Aluminum Rondo 	 	10	 	Induction Burner	 	1

 

    	 

    	 

     

	Item	 	Amt.	 	Item	 	Amt.
	Whisks	 	12	 	Silpat - Full Sheet	 	10
	Metal Spoons 	 	11	 	Digital Scale	 	1
	Metal Slotted spoons 	 	9	 	Cake Turntable	 	1
	Tongs	 	7	 	Paint brush 	 	5
	Plastic Spatulas	 	8	 	Ice Bucket-Single	 	1
	Ladles 2oz 	 	10	 	Ice Bucket-Large	 	3
	Ladles 4oz 	 	5	 	Plate Covers	 	62
	Ladles 6oz 	 	3	 	Pitcher - 2 qt.	 	1
	Ladies 8oz	 	2	 	Qt. Crocks	 	7
	Ladles lg 	 	2	 	Square Cake Molds	 	2
	Hand Cheese Grater 	 	2	 	Rolling pin	 	1
	Speed pourers 	 	8	 	Flex Molds Pastry	 	9
	Loaf Pans - Lg./ Single	 	5	 	Muffin Tins	 	1
	Loaf Pans-Set of 4	 	5	 	Flour Sifter	 	1
	Coffee Urns	 	2	 	Cake Pan - Lg.	 	12
	Chrome Water Pitchers	 	2	 	Cake Pan - Sm.	 	4
	Dish Racks	 	6	 	Cake Pan - Square	 	5
	Colanders	 	2	 	Loaf Pans - Reg./ Single	 	4
	Mini Porceline Pans	 	50	 	Mini Porceline Octogan	 	50
	Plastic Pitcher - 2 qt	 	8	 	 	 	 

 

    	 

    	 

     

 

 

 

 

	Number	 	Manufacture	 	Model Number	 	Serial Number	 	 	 	 
	1	 	TRUE	 	TUC-67D-4	 	1-3881800	 	 	 	4 door Preptable
	1	 	TRUE	 	TPP-67	 	AEA440YXA	 	 	 	Undercounter reach in 2 door prep table
	1	 	TRUE	 	TRCB-48	 	5218426	 	 	 	2 door endercounter reach-in
	1	 	TRUE	 	TWT-93	 	AKA4460YXA	 	 	 	3 door prep top reach-in
	1	 	BEVERAGE-AIR	 	WTRCS52-1	 	7805693	 	 	 	2 drawer reach-in
	1	 	TRUE 	 	TSSU-72-18	 	6626782	 	 	 	3 door prep top reach-in
	1	 	DELFIELD	 	UC4148	 	8.09152E+11	 	 	 	2 door freezer
	1	 	TURBO AIR	 	TST-48SD	 	SR48011012	 	 	 	2 door reach in regrigerator
	1	 	TRUE 	 	TUC-67D-4	 	1-3948128	 	 	 	under counter reach-in
	1	 	JIMEX CORP	 	U1BRR-06S	 	UR060503062	 	 	 	Single door pastry reach-in
	1	 	WALK IN Bootz	 	 	 	 	 	 	 	walk in fridge
	1	 	WALK IN FREEZER Bootz	 	 	 	 	 	 	 	walk in freezer
	1	 	WALK IN Bootz	 	 	 	 	 	 	 	walk in fridge dairy
	1	 	TRUE 	 	T23-G	 	5330640	 	 	 	Glass door fidge
	1	 	TRUE 	 	T23	 	646467	 	 	 	Reach-in fridge
	3	 	Avanti	 	 	 	 	 	 	 	Wind fridge
	1	 	TRUE 	 	63366	 	6638837	 	 	 	Single door reach in
	1	 	TURBO AIR	 	TUR-28SD	 	UR28009004	 	 	 	Bar fridge
	1	 	TURBO AIR	 	TUR-28SD	 	UR28009028	 	 	 	Bar Frideg
	1	 	JIMEX CORP	 	U1BRR-06S	 	UR060503062	 	 	 	Reach in Fridge
	2	 	Imperial	 	 	 	 	 	 	 	Salamanders
	3	 	Imperial 	 	 	 	 	 	 	 	Convection ovens
	1	 	Stratus	 	 	 	 	 	 	 	2 burner top
	1	 	Imperial	 	 	 	 	 	 	 	2 burner top
	1	 	Tri star	 	 	 	 	 	 	 	grill
	2	 	Blodget	 	 	 	 	 	 	 	Double stack convection ovens
	2	 	Hobart	 	A-200	 	 	 	 	 	Mixer
	1	 	Tilt Skillet	 	 	 	 	 	 	 	Stock and soup
	1	 	Pitco	 	 	 	 	 	 	 	Deepfryer
	1	 	Taylor	 	 	 	 	 	 	 	batch freezer Ice cream maker
	1	 	Globe	 	 	 	 	 	 	 	meat slicer

 

    	 

    	 

     

	1	 	Ultrvac	 	 	 	 	 	 	 	vacuum sealer
	2	 	Berner	 	 	 	 	 	 	 	air door (fly prevention)
	1	 	Hatco	 	 	 	 	 	 	 	Toaster conveyor
	1	 	Traulsen	 	GRI2-32CUT	 	 	 	 	 	EDR stad up double door reach in fridge
	1	 	MCCall	 	 	 	 	 	 	 	EDR Double door stand up reach-in freezer
	2	 	Southbend	 	 	 	 	 	 	 	EDR Double stack convection ovens
	1	 	Metro	 	 	 	 	 	 	 	EDR Proofer
	1	 	Metro	 	 	 	 	 	 	 	EDR hot food box
	1	 	Ice creem freezer	 	 	 	 	 	 	 	EDR Sliding door ice cream freezer
	1	 	Kolpak	 	 	 	 	 	 	 	EDR walk-in regrigerator
	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 
	Kitchen dishwasher	 	ECO labs	 	EC44	 	85DA120031	 	 
	EDR dishwasher	 	ECO labs	 	APEX TSC DOUBLE	 	121275760	 	 
	EDR WARMER	 	3/26/2013	 	AEROHOT	 	EP303 M	 	3132298	 	208V / WATTS 2250
	Booster water heater	 	Hatco	 	C-30	 	9975300106	 	 

 

    	 

    	 

      

	Serial Number	Part Number	Description	Location	QTY
	N/A	Unk	17" LCD Dell Monitor	L'Auberge	1
	C51200627G00636	Unk	abmx.com (not sure what it is)	L'Auberge	1
	N/A	Unk	APC UPS Symmetra Power Array	L'Auberge	1
	(270601002848)	Unk	Belkin 8 port KVM	L'Auberge	1
	FTX0926A20U	Unk	Cisco 2800 Series Router - 2821	L'Auberge	1
	FOC0816Y13M	Unk	Cisco Catalyst 2950 - 30 Port Switch	L'Auberge	1
	FOC1302Z4TH	Unk	Cisco Catalyst 2960 - 24 Port Switch	L'Auberge	1
	N/A	Unk	Cisco Catalyst 3560 - POE 8 Port Switch	L'Auberge	1
	H0104V0000120117G0001	FRM301-CH	CTC Union Fiber Transceiver	L'Auberge	1
	N/A	Unk	Cyber Power CPS-1215 RM	L'Auberge	2
	N/A	Unk	Dell Keyboard	L'Auberge	1
	N/A	Unk	Dell Mouse	L'Auberge	1
	G29P2B1	Unk	Dell Optiplex GX620 - Vingcard	L'Auberge	1
	HG95291	Unk	Dell Power Connect 2724 - 24 Port Switch	L'Auberge	1
	GZQMK91	Unk	Dell Power Edge 1800 - LaubIFC01	L'Auberge	1
	7DJKNT1	Unk	Dell Power Edge 1850 - ACCTDC01	L'Auberge	1
	7DJKNR1	Unk	Dell Power Edge 1850 - LAUBDC01	L'Auberge	1
	8KMJ981	Unk	Dell Power Edge 1850 - Millenium	L'Auberge	1
	3YTYLX1	Unk	Dell Power Edge 1850 - Terminal	L'Auberge	1
	8XX6RF1	Unk	Dell Power Edge 2950 - LAUBPMS01	L'Auberge	1
	7LRJFG1	Unk	Dell Power Edge 2950 - MAIL	L'Auberge	1
	HTN6JJ1	Unk	Dell Power Edge 2950 - Sedcampnas	L'Auberge	1
	1MYNFP1	Unk	Dell Power Edge R210	L'Auberge	1
	DRXWXR1	Unk	Dell Power Edge R310 - SEDCAMPMAIL	L'Auberge	1
	TDB093340339	DRPR1-A	Drobo Pro	L'Auberge	1
	FG100D3G12804316	Unk	Fortinet Fortigate 100D - Firewall	L'Auberge	1
	FGT60C3G11002572	P06535-08-01	Fortinet Fortigate 60C - Firewall	L'Auberge	1
	FGT603611001490	P06535-08-01	Fortinet Fortigate 60C - Firewall	L'Auberge	1
	MXM71300LS	Unk	HP DS5700 - ADP PC	L'Auberge	1
	2UX717009P	Unk	HP ProLiant DL380 G5 - SEDCAMPDC	L'Auberge	1
	N/A	Unk	Hubbel Fiber Tray	L'Auberge	2
	(12810340190570070201000)	50087-025-00	Motorola Surfboard SB5100	L'Auberge	1
	(140058709553040502039001)	515291-001-00	Motorola Surfboard SB5101	L'Auberge	1
	(111208000093)	Unk	Rukus Zone Director 3000	L'Auberge	1
	NA5J0MYM	1DXAP1-500	Seagate External HDD 1 TB	L'Auberge	1
	NA0LXQ4N	9ZQ2P6-500	Seagate External HDD 3 TB	L'Auberge	1
	9920HY05M630700160	Unk	Tripp-Lite Smart Pro UPS	L'Auberge	1
	9920HY0SM630700042	Unk	Tripp-Lite Smart Pro UPS	L'Auberge	1
	WCAV55452545	WDBAAF5000EBK-00	Western Digital External HDD 500 GB	L'Auberge	1
	FOX074702ZM	Unk	Cisco Catalyst 4506 - Switch (Cards listed below)	L'Auberge	1
	SNI0721AB2P	Unk	1300 AVC PSU	L'Auberge	2
	JAB061106XK	Unk	WS-4014 - Supervisor III Engine Card	L'Auberge	1
	JAB081806PV	Unk	WS-X4224-RJ45V 24 Port PoE Card	L'Auberge	1
	JAB082507L8	Unk	WS-X4448-GB-RJ45 48 Port Card	L'Auberge	1
	JAB085103WB	Unk	WS-X4506-GB-T 6 Port Fiber Transceiver Card	L'Auberge	1

 

    	 

    	 

    

 

	Serial Number	Part Number	Description	Location	QTY
	N/A	Unk	APC Battery Pack	L'Auberge	1
	N/A	Unk	APC Smart UPS 3000 XL	L'Auberge	1
	SG416NV0JX	J4813A	HP ProCurve 2524 - Switch	L'Auberge	1
	AA-BDJ-9885	Unk	Mitel SX-200	L'Auberge	1
	AA-BDZ-1338	Unk	Mitel SX-200  	L'Auberge	1
	50003723	Unk	Mitel SX-200 ICP	L'Auberge	1
	I04246814000100	Unk	Power Dsine 6012 - PoE Switch	L'Auberge	1
	N/A	Unk	Tripp-Lite isobar	L'Auberge	1
	1MCWX63K0140	Unk	USR 56k v.92 - Modem	L'Auberge	1

 

    	 

    	 

    

 

	Serial Number	Part Number	Description	Location	QTY
	21400366692	Unk	Acer Veriton RTL8192DE	Orchards	1
	JS0451023626	SUA3000RM2U	APC UPS 	Orchards	1
	FTX1016A25K	Unk	Cisco 2800 Series Router - 2821	Orchards	1
	Unk	Unk	Cisco Catalyst 2950	Orchards	1
	Unk	Unk	Cisco SF-302-08P - 8 Port PoE Switch	Orchards	1
	Unk	Unk	CTC Fiber Transceiver	Orchards	1
	BB0BY2000518	Unk	CyberPower UPS 1500 AVR	Orchards	1
	Unk	Unk	Dell Power Connect 2724 - 24 Port Switch	Orchards	1
	Unk	Unk	Dell Power Connect 2808 - 8 Port Switch	Orchards	1
	3YHSYB1	Unk	Dell Power Edge 1850	Orchards	1
	11250G1	Unk	Dell Power Edge 2950	Orchards	1
	MXL64705FG	Unk	HP dc5100mt - PC	Orchards	1
	ZH041232	9NT2A4-500	Maxtor External HDD 500 GB	Orchards	1
	Unk	Unk	Mitel ASU II	Orchards	1
	Unk	Unk	Mitel SX-200	Orchards	1
	Unk	Unk	Mitel SX-200 MX Controller	Orchards	1
	360801005256	Unk	Rukus Zone Director 1000	Orchards	1
	480801008140	Unk	Rukus Zone Flex AP 2942	Orchards	1
	N/A	Unk	Tripp-Lite isobar	Orchards	2

 

 

    	 

    	 

    

 

 

China -

	 	22	BLT bigger style plate

	 	10	Salmon BLT plate

	 	42	RS large bowl

	 	31	Large square plate

	 	25	Large round with center hole, we don’t use

	 	19	Long crepe plate

	 	7	Old soup bowl

	 	32	Soup bowl

	 	11	French onion bowl

	 	12	Side salad bowl

	 	24	Shallow bowl side handles

	 	90	Very small dessert bowl

	 	90	Very small dessert bowl with handle

	 	18	Cheese plate

	 	10	Flatbread oval plate

	 	12	Longer flatbread oval plate

	 	33	Butter ramekins small square

	 	8	Burger setup trio dish

	 	20	Creamers

	 	45	Round desert ramekins

	 	31	Breakfast oval plate

	 	50	B & B dimpled

	 	30	B & B smooth

	 	60	Coffee cups

	 	65	Coffee saucers

 

Glassware –

176 Water glasses

59 Juice glasses

53 High ball

56 Low ball

73 Champagne

38 RS red wine

20 RS white wine

15 espresso cups

30 Irish coffee mugs

24 Reidel pinot noir

36 Reidel cab/merlot

12 Reidel hermitage

12 Reidel martini

 

Silverware -

329 small forks

191 large forks

265 Dinner knife

60 Steak knife

113 Butter knife

23 Soup spoon

61 Tea spoon

71 Large spoon

10 espresso spoons

 

    	 

    	 

     

Office Equipment

Dell computers (3)

Dell monitors (3)

Dell keyboards (3)

2 door filing cabinets (3)

Telephones in office (2)

Dell printer B2360dn (1)

Brother dcp 7020  laser printer (1)

Cartridges for brother computer (4)

Cartridges for dell computer (2)

Tool box for chefs tools (1)

Paper cutter (1)

Three hole punch (1)

Safe (1)

Compaq laptop computer (1)

Pencil sharpener (1)

Clip boards (13)

 

Dining Room Furniture and Equipment

Micros computers (5)

Micros printers (4)

 

Veranda Bar, Patio and Fire Pit area -

Liquor hutch for cognacs (1)

Cappuccino machines (2)

Bar dolly (1)

Wicker bar tables (8)

Veranda bar stools with cushions (18)

Firepit tables (3)

Fire pit chairs with two cushions on each (30)

Inside bar stools (17)

Tall veranda bar stools (4)

Wicker tall bar stools outside patio dining (9)

Long 9 foot table for veranda (1)

3 by 3 tables on veranda patio (5)

 

Indoor Dining Room -

Hutch for menus (1)

Indoor host stand (1)

Server hutch next to back door (1)

Server shelving unit for glassware by kitchen door (1)

Indoor plants for dining room (7)

Hallway tables (2)

Inside dining room chairs (61)

3 foot by 2 foot inside dining tables (27)

 

Creekside Patio -

Square terrace tables (11)

Small round terrace tables (14)

Large round table on terrace (1)

Large rectangle tables on terrace (2)

Leather chairs in front of fireplace (2)

High chairs (2)

 

    	 

    	 

     

Patio side station

9 water pitchers

5 silver ice buckets with stands

2 small refrigerators

2 drawer warmer

27 bud vases

 

Wine cellar

1 desk

1chair

5 metro shelving units

1 ice machine

1 computer monitor

 

Room service 

16 big RS trays

7 little RS trays

43 salt and peppers

14 coffee pots

7 new amenity buckets

4 old amenity buckets.

 

 

    	 

    	 

     

 

Tables/Chairs/Misc.

 

	 	 4/15/2013
	 	 
	Chairs	 
	 	 
	White Folding Chairs 	172
	Black Chairs 	28
	Burgundy Chairs 	131 (20 torn)
	 	 
	Exec. Chairs 	14 + offices
	 	 
	Tables	 
	 	 
	6x30 	22
	8x30 	7
	4x18 	3
	8x18 	10
	Serp 	3
	1/2 Round 	1
	Bars (Rolling) 	3
	Bar Tops 	3-6 ft, 2-7 ft.
	 	 
	30" Rounds 	4-legs, 5 w/o
	36" Rounds 	1-legs, 1 w/o
	30" Square 	1
	Highboy Poles 	5-highboy, 3-adjustable
	Pole Stands (feet) 	9
	 	 
	48" Rounds 	2
	60" Rounds 	8
	66" Rounds 	15
	72" Rounds 	9
	 	 
	4’ wood table (water) 	3
	5’ wood table 	5
	6’ wood table 	1
	7’ wood table 	2
	Cezanne Boardroom Table 	1
	Cezanne Credenza 	1

 

    	 

    	 

     

	Silver Service	 
	 	 
	Rectangle Chafer	7
	Round Chafer	4
	Square Serving Trays	10
	Round Serving Trays	39
	Coffee Pots	
        5

         

	Water Pitchers	8
	Juice Pitchers	10
	Large Cream Pitcher	5
	 	 
	Silver Service Utensils	 
	 	 
	Large Serving Spoons 	14
	Small Serving Spoons 	26
	Serving Forks 	7
	Large Ladles 	4
	Small Ladles 	4
	Long Tongs 	12
	Medium Tongs 	10
	Short Tongs 	25
	Cake Server (spat)	 7
	Cake Knife 	2

 

	Misc.	 
	 	 
	Oval Trays (Shared) 	22
	Cocktail Trays 	8
	Tray Jacks 	6-tall (new) , 7-short
	High Chairs	5
	Air Pots	15
	Coffee Urn	8
	Insulated Coffee Pots (Insulated)	4
	Salt & Peppers	Tall-13, Short S-14, P-11
	Sugar Caddy	China-7, Glass-40
	Votives	224

 

	Trash Cans                                                                w/wheels - 5, w/o - 2 Bar (narrow) - 3
	 	 
	Beverage Dispensers 	3
	Meeting Blotter Pads 	7
	Refrigerator in Banquet Storeroom 	1
	Metro Racks in Banquet Storeroom 	3

 

  

    	 

    	 

     

	AV Equipment	 
	 	 
	LCD Projector 	3
	Screens 	2 -6x6, 1- 8x8, 1- 10x20?
	Mixers 	2- 4 Channel, 1- 8 Channel
	Wireless Mic Systems 	3
	DVD Player 	3
	VCR 	2
	Stereo Receiver 	1
	Copy/Printer 	1
	Conference Phone 	1
	Loud Speakers 	2
	Flat Panel TV 	1- 32” (Matisse) , 1- 42” (Cezanne)
	White Board 	1- 3x4, 1- 2x3
	Daylite Flip Chart Stands 	8
	Easel 	2
	Assorted Power Cords, Power Strips and Cables	 

 

	Props
	 
	Bird Houses - (8)
	 
	Lavender with Geese
	 
	White Wedding- Tree, Candle Sticks, Card Tray
	 
	Table Runners-(15 Brown)
	 
	
        Black Metal Risers- Assorted Sizes

         

	Wicker Baskets-Assorted Sizes
	 
	Christmas Décor- 2- 6 ft. Trees, 1- 3 ft. Tree, Assorted Lights and Decor

 

 

    	 

    	 

     

 

 

 

	 	 	Indoor unit	 	Model 1	 	Serial 1	 	Model 2	 	Serial 2	 	Out door unit	 	Model	 	Serial
	 	 	L'AUBERGE ROOMS	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	CREEK SIDE	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	1	 	FUJITSU	 	ASU18RLQ	 	GWA001704	 	 	 	 	 	FUJITSU	 	A0U18RLQ	 	GWN001454
	2	 	FUJITSU	 	ASU9RMLQ	 	GQA040244	 	ASU9MLQ	 	GQA039953	 	FUJITSU	 	A0U24RML1	 	DXN011223
	3	 	FUJITSU	 	ASU18RLQ	 	GWA0001722	 	 	 	 	 	FUJITSU	 	A0U18RLQ	 	GWN001471
	4	 	FUJITSU	 	ASU18RLQ	 	GWA001567	 	 	 	 	 	FUJITSU	 	A0U18RLQ	 	GWN001528
	5	 	FUJITSU	 	ASU12RMLQ	 	GRA031789	 	ASU12RMLQ	 	GRA0031781	 	FUJITSU	 	A0U24RML1	 	DXN007925
	6	 	FUJITSU	 	ASU18RLQ	 	GWA001725	 	 	 	 	 	FUJITSU	 	A0U18RLQ	 	GWN001433
	7	 	FUJITSU	 	ASU18RLQ	 	GWA001579	 	 	 	 	 	FUJITSU	 	A0U18RLQ	 	GWN001451
	 	 	GARDEN COT	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	8	 	NORDYNE	 	B5BV-000K-B-10	 	C5D090508703	 	 	 	 	 	NORDYNE	 	DS5BD-024KB	 	DSD081200058
	9	 	THERMAL ZONE	 	M8412HP13240IA	 	?	 	 	 	 	 	THERMAL ZONE	 	MS412HP13240CA	 	?
	10	 	FUJITSU	 	ASU18RLQ	 	GWA000734	 	 	 	 	 	FUJITSU	 	A0U18RLQ	 	GWN000721
	11	 	FUJITSU	 	ASU18RLQ	 	GWA001559	 	 	 	 	 	FUJITSU	 	A0U18RLQ	 	GWN001558
	12	 	FUJITSU	 	ASU18RLQ	 	GWA001732	 	 	 	 	 	FUJITSU	 	A0U18RLQ	 	GWN001620
	14	 	FUJITSU	 	ASU18RLQ	 	GWA00572	 	 	 	 	 	FUJITSU	 	A0U18RLQ	 	GWN000546
	 	 	CREEKSIDE	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	15	 	FUJITSU	 	ASU18RLQ	 	GWA001710	 	 	 	 	 	FUJITSU	 	A0U18RLQ	 	GWN001455
	16	 	FUJITSU	 	ASU18RLQ	 	GWA001702	 	 	 	 	 	FUJITSU	 	A0U18RLQ	 	GWN001519
	17	 	FUJITSU	 	ASU18RLQ	 	GWA001566	 	 	 	 	 	FUJITSU	 	 	 	 
	18	 	FUJITSU	 	ASU18RLQ	 	GWA001724	 	 	 	 	 	FUJITSU	 	A0U18RLQ	 	GWN001447
	19	 	FUJITSU	 	ASU18RLQ	 	GWA001718	 	 	 	 	 	FUJITSU	 	A0U18RLQ	 	GWN001642
	20	 	FUJITSU	 	ASU18RLQ	 	GWA001717	 	 	 	 	 	FUJITSU	 	A0U18RLQ	 	GWN001616
	21	 	FUJITSU	 	ASU18RLQ	 	GWA001410	 	 	 	 	 	FUJITSU	 	A0U18RLQ	 	GWN001517
	22	 	FUJITSU	 	ASU18RLQ	 	GWA000571	 	 	 	 	 	FUJITSU	 	A0U18RLQ	 	GWN000545
	23	 	FUJITSU	 	ASU18RLQ	 	GWA001571	 	 	 	 	 	FUJITSU	 	A0U18RLQ	 	GWN001520
	 	 	GARDEN COT	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	24	 	FUJITSU	 	ASU18RLQ	 	GWA011552	 	 	 	 	 	FUJITSU	 	A0U18RLQ	 	GWN008889
	25	 	FUJITSU	 	ASU18RLQ	 	GWA001573	 	 	 	 	 	FUJITSU	 	A0U18RLQ	 	GWN001445
	26	 	FUJITSU	 	ASU18RLQ	 	GWA001413	 	 	 	 	 	FUJITSU	 	A0U18RLQ	 	GWN001470
	27	 	FUJITSU	 	ASU18RLQ	 	GWA001701	 	 	 	 	 	FUJITSU	 	A0U18RLQ	 	GWN001643
	28	 	LENNOX	 	 	 	 	 	 	 	 	 	LENNOX	 	HP16261V11P	 	5184A19397
	29	 	LENNOX	 	 	 	 	 	 	 	 	 	LENNOX	 	HP16261V11P	 	5184A19413
	30	 	FUJITSU	 	ASU18RLQ	 	GWA011495	 	 	 	 	 	FUJITSU	 	A0U18RLQ	 	GWN009115
	31	 	FUJITSU	 	ASU18RLQ	 	GWA001709	 	 	 	 	 	FUJITSU	 	A0U18RLQ	 	GWN001412
	32	 	FRIEDRICH	 	MW18Y3F	 	LFJC00388	 	 	 	 	 	FRIEDRICH	 	MR18Y3FS	 	LFJC00459

 

 

    	 

    	 

     

 

	 	 	Indoor unit	 	Model 1	 	Serial 1	 	Model 2	 	Serial 2	 	Out door unit	 	Model	 	Serial
	33	 	NORDYNE	 	 	 	 	 	 	 	 	 	NORDYNE	 	DS5BD-024KB	 	DSA090200688
	 	 	CREEK HOUSE	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	CH	 	RHEEM	 	RHQA2010	 	HM09844607	 	 	 	 	 	RUUD	 	UPNL-060JAZ	 	7480W201006762
	55	 	LENNOX	 	CB26UH060R2301	 	6007K27206	 	 	 	 	 	LENNOX	 	HP13-024-230-01	 	5808A01523
	56	 	LENNOX	 	CB26UH060R2301	 	6007K27206	 	 	 	 	 	LENNOX	 	HP13-024-230-01	 	5808A01523
	57	 	LENNOX	 	CB26UH060R2301	 	6007K27206	 	 	 	 	 	LENNOX	 	HP13-024-230-01	 	5808A01523
	58	 	RHEEM	 	RHQA1605B	 	HM13840993	 	 	 	 	 	GOODMEN	 	CPKE42-18	 	9908474706
	59	 	FUJITSU	 	ASU15RLQ	 	GVA005637	 	 	 	 	 	FUJITSU	 	A0U15RLQ	 	GVN102261
	 	 	SPA COT	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	60	 	BROAN	 	B5BV-000K-B-10	 	B5D081000854	 	 	 	 	 	NORDYNE	 	DS5BD-024KB	 	DSA090200683
	61	 	NORDYNE	 	B5BV-000K-B-10	 	B5D081001354	 	 	 	 	 	NORDYNE	 	DS5BD-024KB	 	DSA090200690
	62	 	BROAN	 	B5BV-000K-B-10	 	B5D080906720	 	 	 	 	 	NORDYNE	 	DS5BD-024KB	 	DSD081200067
	63	 	BROAN	 	B5BV-000K-B-10	 	B5D081000856	 	 	 	 	 	NORDYNE	 	DS5BD-024KB	 	DSA090501293
	64	 	NORDYNE	 	 	 	 	 	 	 	 	 	NORDYNE	 	DS5BD-024KB	 	DSA090501296
	65	 	BROAN	 	B5BV-000K-B-10	 	B5D081000855	 	 	 	 	 	NORDYNE	 	DS5BD-024KB	 	DSA090600369
	66	 	NORDYNE	 	 	 	 	 	 	 	 	 	NORDYNE	 	DS5BD-024KB	 	DSA090501295
	67	 	BROAN	 	B5BV-000K-B-10	 	B5D080908297	 	 	 	 	 	NORDYNE	 	DS5BD-024KB	 	DSA090200686
	68	 	NORDYNE	 	 	 	 	 	 	 	 	 	NORDYNE	 	DS5BD-024KB	 	DSA090501294
	70	 	NORDYNE	 	B5BV-000K-B-10	 	B5D080908296	 	 	 	 	 	NORDYNE	 	S5BD-024KA	 	S5A070602750
	71	 	NORDYNE	 	B5BV-000K-B-10	 	B5D081101079	 	 	 	 	 	NORDYNE	 	S5BD-024KA	 	S5A070602749
	 	 	VISTA SUITES	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	80	 	INTERTHERM	 	B5BV-000K-B-10	 	B5D091201583	 	 	 	 	 	NORDYNE	 	DS5BD-024KB	 	DSA090301004
	81	 	INTERTHERM	 	B5BV-000K-B-10	 	 	 	 	 	 	 	NORDYNE	 	DS5BD-024KB	 	DSA090301017
	82	 	INTERTHERM	 	B5BV-000K-B-10	 	B5D091201586	 	 	 	 	 	NORDYNE	 	DS5BD-024KB	 	DSA090301002
	83	 	INTERTHERM	 	B5BV-000K-B-10	 	 	 	 	 	 	 	NORDYNE	 	DS5BD-024KB	 	DSA090300916
	84	 	INTERTHERM	 	B5BV-000K-B-10	 	 	 	 	 	 	 	NORDYNE	 	DS5BD-024KB	 	DSA090301007
	85	 	INTERTHERM	 	B5BV-000K-B-10	 	 	 	 	 	 	 	NORDYNE	 	DS5BD-024KB	 	DSA090300997
	86	 	INTERTHERM	 	B5BV-000K-B-10	 	 	 	 	 	 	 	NORDYNE	 	DS5BD-024KB	 	DSA090300996
	87	 	INTERTHERM	 	B5BV-000K-B-10	 	B5D091201591	 	 	 	 	 	NORDYNE	 	DS5BD-024KB	 	DSA090301015
	88	 	INTERTHERM	 	B5BV-000K-B-10	 	B5D081000853	 	 	 	 	 	NORDYNE	 	DS5BD-024KB	 	DSA090301013
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	90	 	INTERTHERM	 	B5BV-000K-B-10	 	B5D091201612	 	 	 	 	 	 	 	 	 	 
	91	 	INTERTHERM	 	B5BV-000K-B-10	 	B5D091201603	 	 	 	 	 	NORDYNE	 	DS5BD-024KB	 	DSA090301016
	92	 	INTERTHERM	 	B5BV-000K-B-10	 	 	 	 	 	 	 	 	 	DS5BD-024KB	 	DSA090300917
	93	 	INTERTHERM	 	B5BV-000K-B-10	 	 	 	 	 	 	 	 	 	 	 	 

 

 

    	 

    	 

     

 

	 	 	Indoor unit	 	Model 1	 	Serial 1	 	Model 2	 	Serial 2	 	Out door unit	 	Model	 	Serial
	94	 	INTERTHERM	 	B5BV-000K-B-10	 	B5D091201604	 	 	 	 	 	NORDYNE	 	DS5BD-024KB	 	DSA090300999
	95	 	INTERTHERM	 	B5BV-000K-B-10	 	B5D091201594	 	 	 	 	 	NORDYNE	 	DS5BD-024KB	 	DSA090301000
	96	 	INTERTHERM	 	B5BV-000K-B-10	 	B5D091201592	 	 	 	 	 	NORDYNE	 	DS5BD-024KB	 	DAS090301014
	97	 	INTERTHERM	 	B5BV-000K-B-10	 	B5D081000851	 	 	 	 	 	NORDYNE	 	DS5BD-024KB	 	DSA090301005
	98	 	INTERTHERM	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	LODGE	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	435	 	FIRST CO.	 	 	 	 	 	 	 	 	 	CHILLER	 	 	 	 
	436	 	FIRST CO.	 	 	 	 	 	 	 	 	 	CHILLER	 	 	 	 
	437	 	FIRST CO.	 	6HHS5-240	 	S01	 	 	 	 	 	CHILLER	 	 	 	 
	438	 	FIRST CO.	 	 	 	 	 	 	 	 	 	CHILLER	 	 	 	 
	439	 	FIRST CO.	 	 	 	 	 	 	 	 	 	CHILLER	 	 	 	 
	440	 	FIRST CO.	 	 	 	 	 	 	 	 	 	CHILLER	 	 	 	 
	441	 	FIRST CO.	 	 	 	 	 	 	 	 	 	CHILLER	 	 	 	 
	442	 	FIRST CO.	 	 	 	 	 	 	 	 	 	CHILLER	 	 	 	 
	443	 	FIRST CO.	 	 	 	 	 	 	 	 	 	CHILLER	 	 	 	 
	444	 	FIRST CO.	 	 	 	 	 	 	 	 	 	CHILLER	 	 	 	 
	544	 	FIRST CO.	 	 	 	 	 	 	 	 	 	CHILLER	 	 	 	 
	545	 	FIRST CO.	 	 	 	 	 	 	 	 	 	CHILLER	 	 	 	 
	546	 	FIRST CO.	 	 	 	 	 	 	 	 	 	CHILLER	 	 	 	 
	547	 	FIRST CO.	 	 	 	 	 	 	 	 	 	CHILLER	 	 	 	 
	548	 	FIRST CO.	 	 	 	 	 	 	 	 	 	CHILLER	 	 	 	 
	549	 	FIRST CO.	 	 	 	 	 	 	 	 	 	CHILLER	 	 	 	 
	550	 	FIRST CO.	 	 	 	 	 	 	 	 	 	CHILLER	 	 	 	 
	551	 	FIRST CO.	 	 	 	 	 	 	 	 	 	CHILLER	 	 	 	 
	552	 	FIRST CO.	 	 	 	 	 	 	 	 	 	CHILLER	 	 	 	 
	553	 	FIRST CO.	 	 	 	 	 	 	 	 	 	CHILLER	 	 	 	 
	554	 	FIRST CO.	 	 	 	 	 	 	 	 	 	CHILLER	 	 	 	 

 

 

    	 

    	 

     

 

	 	 	Indoor unit	 	Model 1	 	Serial 1	 	Model 2	 	Serial 2	 	Out door unit	 	Model	 	Serial
	 	 	PUBLIC AREAS	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	ART COTTAGE	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	P1	 	RUUD	 	RRNL-B042JK08X	 	2G7411ADAAF211003744	 	GAS PACK	 	 	 	 	 	 	 	 
	 	 	GYM	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	P2	 	Rheem	 	RRNL-B042JK08X	 	2G7411ADAAF481007645	 	Gas pack	 	 	 	 	 	 	 	 
	 	 	SPA  	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Lennox	 	 	 	 	 	GAS Furnace	 	 	 	TEMPSTAR	 	TCA048AKA4	 	L021219151
	 	 	Indoor unit	 	Model 1	 	Serial 1	 	Model 2	 	Serial 2	 	Out door unit	 	Model	 	Serial
	 	 	LOCKER RM	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	P3	 	Rheem	 	RRNL-B036JK08E	 	2G7409ADAAF081105779	 	GAS PACK	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	KITCHEN	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	D2	 	 	 	IN ROOF	 	 	 	 	 	 	 	TRANE	 	4TWR3024A1000AA	 	9161NRD4F
	K1	 	RUUD	 	UNLA-HM6024JA	 	M1608-03848	 	 	 	 	 	RUUD	 	UPNE-060AZ	 	7434-M1308
	D1	 	TRANE	 	4TEC3F60B1000AA	 	9062NKP2V	 	 	 	 	 	TRANE	 	4TWR3060A1000AA	 	9132WLW2F
	D3	 	 	 	IN ROOF	 	 	 	 	 	 	 	RUUD	 	UPNL-024JAZ	 	7474-M090907796
	OF	 	TRANE	 	4TEC3F48B1000AA	 	90617FS2V	 	 	 	 	 	TRANE	 	4TWR3048A1000AA	 	9192MH21F
	 	 	PHOENIX COOLER	 	H1425	 	959047	 	 	 	 	 	 	 	 	 	 
	 	 	AERO COOL	 	TH6800	 	916976	 	 	 	 	 	 	 	 	 	 
	 	 	PATIO DINING	 	 	 	 	 	 	 	 	 	RUUD	 	PACK A/C	 	HEAT STRIPS
	 	 	ARRIVALS	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	EDR KITCHEN	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	ICE BOX	 	QPA310	 	10860349	 	 	 	 	 	NORDYNE	 	T5BD-048K	 	T5A080600833
	 	 	ICE MACHINES	 	QD0453W	 	10862490	 	 	 	 	 	 	 	 	 	 
	1	 	WALK IN 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	3	 	REACH IN 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4	 	FREEZER	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5	 	FREEZER	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Boiler RayPack	 	WH1-0400	 	705266379	 	BTU'S	 	399,000	 	NAT	 	 	 	 
	 	 	WINE ROOM	 	 	 	 	 	 	 	 	 	FUJITSU	 	HMH024KD1	 	402KA?PO??

 

 

    	 

    	 

     

 

	 	 	Indoor unit	 	Model 1	 	Serial 1	 	Model 2	 	Serial 2	 	Out door unit	 	Model	 	Serial
	 	 	EO building 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	TEMPSTAR	 	TCA060AKA2	 	L011239536
	H1	 	 	 	 	 	 	 	 	 	 	 	FUJITSU	 	A0U12RQ	 	BPN008361
	H2	 	 	 	 	 	 	 	 	 	 	 	FUJITSU	 	A0U12RQ	 	BPN008530
	H2	 	 	 	 	 	 	 	 	 	 	 	FUJITSU	 	A0U12RQ	 	BPN008544
	 	 	 	 	 	 	 	 	 	 	 	 	TEMPSTAR	 	TCA060AKA2	 	L011433217
	HR	 	 	 	 	 	 	 	 	 	 	 	FUJITUS	 	A0U12RQ	 	BPN008362
	 	 	 	 	 	 	 	 	 	 	 	 	SAMSUNG	 	UQ24A2RC	 	A3112P2JX400185J
	 	 	 	 	 	 	 	 	 	 	 	 	CARRIER	 	38ARQ012—501—	 	0203G50033
	 	 	 	 	 	 	 	 	 	 	 	 	CARRIER	 	38ARQ012—501—	 	0203G50036
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	BANQUETS	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	ICE BOX	 	S970	 	10822226	 	 	 	 	 	 	 	 	 	 
	 	 	ICE MACHINES	 	SY0504A	 	110753046	 	MANITOWOC	 	 	 	 	 	 	 	 

 

 

    	 

    	 

     

 

 

	 	 	 	Pool Equipment	 	 	 
	 	 	 	 	 	 	 
	Pool Heater:	 	Master Temp 400-pentair	 	 	Serial#	11171711101634
	 	 	 	 	 	 	 
	Chlorinator	 	Pentair-Intellichlor IC60	 	 	Serial#	342731
	 	 	 	 	 	 	 
	Filter	 	Pentair CCP420	 	 	Serial#	019616611000V
	 	 	 	 	 	 	 
	Pump	 	Pentair Intelliflo Variable Speed	 	 	Serial #	0332179110235Q
	 	 	 	 	 	 	 
	Water feature	 	Whisper flo	 	 	Serial#	0326123110117U
	 	 	 	 	 	 	 
	 	 	 	Spa Equipment	 	 	 
	 	 	 	 	 	 	 
	Heater	 	Master temp 250	 	 	Serial# 	1117153110201V
	 	 	 	 	 	 	 
	Chlorinator	 	Intellichlor IC40	 	 	Serial#	354163
	 	 	 	 	 	 	 
	Filter	 	Clean and clear CCP320	 	 	Serial#	0196173110145L
	 	 	 	 	 	 	 
	Pump	 	Intelliflow variable speed	 	 	Serial#	3.32179E+12
	 	 	 	 	 	 	 
	Jet Pump	 	Whisper flo	 	 	Serial#	0326136110196T
	 	 	 	 	 	 	 
	 	 	 	Pool Furniture	 	 	 
	 	 	 	 	 	 	 
	7 Chaise Lounges	 	 	 	 	 	 
	 	 	 	 	 	 	 
	9 foot stools 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	3 tables	 	 	 	 	 	 
	 	 	 	 	 	 	 
	12 chairs	 	 	 	 	 	 

 

    	 

    	 

     

	 	Gym Equipment	 	 	 
	 	 	 	 	 
	Tread mills	2	 	Refridgerator	1
	 	 	 	 	 
	Make:	 	 	Make:	 
	True CS550	 	 	Haier	 
	 	 	 	 	 
	Model:	 	 	Serial#	 
	TCS550	 	 	HBCN05V5	 
	 	 	 	 	 
	Serial#	 	 	 	 
	11-TCS550054/55A	 	 	 	 
	 	 	 	 	 
	Elliptical machine	1	 	Television	2
	 	 	 	 	 
	Make:	 	 	Make:	 
	True CS800	 	 	LG	 
	 	 	 	 	 
	Model:	 	 	Model:	 
	XCS800	 	 	LG42LC50C/LG42LD340H	 
	 	 	 	 	 
	Serial#	 	 	 	 
	11-XCS0241	 	 	 	 
	 	 	 	 	 
	Free Weight Tower	1	 	 	 
	 	 	 	 	 
	Make:	 	 	 	 
	Hampton	 	 	 	 
	 	 	 	 	 
	Weight Benches	2	 	 	 
	 	 	 	 	 
	Make:	 	 	 	 
	Tuff Stuff	 	 	 	 
	 	 	 	 	 
	Model:	 	 	 	 
	Proformance plus	 	 	 	 
	 	 	 	 	 
	Serial#	 	 	 	 
	0017955/0018269	 	 	 	 

 

    	 

    	 

     

Engineering Shop Tool Inventory

 

	Shop Tools	 	Hvac Tools	 
	 	 	 	 
	Black &Decker belt sander	 	9010 Electroni Refrigerant scale	 
	Black and decker 10" miter saw	 	Extech cfm Thermo-Anemometer	 
	Bosch 4.5 grinder	 	EZ-ject leak detection kit	 
	Bosch rotohammer 119vrs	 	FieldPiece Digital Manifold Gauge	2
	Circular saw cordless 6.5v	 	Leak Detector	 
	Delta Bench Grinder 	2	Ony/Acetylene Kit 	 
	Dewalt 6.5 circular saw	 	R22 Manifold Gauge	 
	Dewalt drill DC280C2	 	R410A Manifold Gauge	 
	Dewalt metal chop saw	 	Recover machine	 
	Hand sanke	 	Swage/Flare kit	 
	Husky air compressor	 	Ultimate Blower wheel puller	 
	Husky socket set	 	Vac Pump Cool Tech	 
	Makita 18v impact driver & hammer driver drill kit	 	Volt Meter	 
	Makita 4.5" grinder 9557NB	 	 	 
	Makita 7" corded grinder	 	 	 
	Milwaukee sawzall	 	 	 
	Porter cable brad nailer	 	 	 
	Porter cable Finish Nailer	 	 	 
	Porter cable Narrow crown & stapler	 	 	 
	Porter cable Pancake compressor	 	 	 
	Ridgid power snake	 	 	 
	Roto zip saw 204250222	 	 	 
	Ryobi 12" drill press	 	 	 
	Ryobi Router	 	 	 
	Tyton Spray Gun 440I	 	 	 
	Westward Battery Jump Box	 	 	 

 

    	 

    	 

     

	 	 	Stand alone heaters	 	 
	 	 	 	 	 
	Deck Heater:	 	 	 	 
	 	 	 	 	 
	Make:	 	 	Make:	 
	Juangsu	7	 	Dayton	8
	 	 	 	 	 
	Model:	 	 	Model:	 
	HSS-A-SS	 	 	HSS-RS-SS	 
	 	 	 	 	 
	Serial#	 	 	Serial#	 
	2011026465	 	 	ITGP7A	 
	 	 	 	 	 
	 	 	Fire Pits	 	 
	 	 	 	 	 
	Make:	 	 	 	 
	Mallin Casual Furnature	3	 	 	 
	 	 	 	 	 
	Model:	 	 	 	 
	P64000078	 	 	 	 
	 	 	 	 	 
	Serial#	 	 	 	 
	697132	 	 	 	 
	 	 	 	 	 
	 	 	Infrared Heaters	 	 
	 	 	 	 	 
	Make:	 	 	Make:	 
	Sunpak	7	 	Infratech	2
	 	 	 	 	 
	Model:	 	 	Model:	 
	S25	 	 	W-1012	 
	 	 	 	 	 
	Serial#	 	 	Serial#	 
	15816	 	 	212	 
	 	 	 	 	 
	 	 	Steam Generators Spa	 	 
	 	 	 	 	 
	Make:	 	 	Make:	 
	Steamist	2	 	Steamist	1
	 	 	 	 	 
	Model:	 	 	Model	 
	SM-7	 	 	TSG-10	 
	 	 	 	 	 
	Serial #	 	 	Serial#	 
	1001401	 	 	2004495	 

 

    	 

    	 

     

	 	 	 	 	Microwaves	9
	 	 	 	 	 	 	 
	Make:	 	Model:	 	 	 	 
	 	 	 	 	 	 	 
	Magic chef	 	MCM770B1	 	 	 
	Magic Chef	 	MCB780W	 	 	 
	Goldstar	 	MA680M	 	 	 
	Samsung	 	MUH4274W	 	 	 
	Magic chef	 	MCD770B	 	 	 
	Sharp	 	R230KK	 	 	 
	Gold Star	 	MA680M	 	 	 
	Gold Star	 	MA680M	 	 	 
	Magic chef	 	MCM770B1	 	 	 
	 	 	 	 	 	 	 
	 	 	 	 	DVD Players	8
	 	 	 	 	 	 	 
	Make:	 	Model:	 	 	 	 
	 	 	 	 	 	 	 
	Sony	 	DVPSR200P	5	 	 
	Toshiba	 	SD2900KU	1	 	 
	Panasonic	 	DVDS68	2	 	 
	 	 	 	 	 	 	 
	 	 	 	 	Fans	 	5
	 	 	 	 	 	 	 
	Make:	 	Model:	 	 	 	 
	 	 	 	 	 	 	 
	Polar-Aire	 	LF18	 	2	 	 
	Lasko	 	3733	 	2	 	 
	Living Acent	FS4-8JR	1	 	 
	 	 	 	 	 	 	 
	 	 	 	 	Dressers	 	9
	 	 	 	 	 	 	 
	 	 	Drawers	Cabinets	 	 	 
	Marble topped	6	 	4	 	 
	 	 	 	 	 	 	 
	Wood topped	5	 	2	 	 
	 	 	 	 	 	 	 
	Wood Topped	6	 	1	 	 
	 	 	 	 	 	 	 
	Dark wood topped	6	2	2	 	 
	 	 	 	 	 	 	 
	 	 	 	 	Refrigerator	 
	 	 	 	 	 	 	 
	 	 	 	 	0	 	 

 

    	 

    	 

     

	 	 	Laundry Equipment
	 	 	 
	Make:	 	 
	 	 	 
	Maytag extractor	 	2
	 	 	 
	Model:	 	 
	MFS50PNFVS	 	 
	 	 	 
	Serial:	 	 
	11000107&8JA	 	 
	 	 	 
	Make:	 	 
	 	 	 
	Huebsch Dryer	 	1
	 	 	 
	Model:	 	 
	HT075NQTB1G2W01	 	 
	 	 	 
	Serial#	 	 
	1007019963	 	 

 

    	 

    	 

     

	 	Cottage Water heaters
	 	 	 	 
	 	 	 	 
	Art Cottage Electric on demand	 	1	 
	 	 	 	 
	Edr electric booster heater	 	1	 
	 	 	 	 
	Kitchen/Restaruant 100gal Rheem Electric	 	1	 
	 	 	 	 
	Laundry Electric 50gl cap	 	1	 
	 	 	 	 
	Oasis cafeteria 50gl cap	 	1	 
	 	 	 	 
	Raypak lodge boiler 399K btu  21 rooms	 	1	 
	 	 	 	 
	Rheem Electric 50gl cap	 	26	 
	 	 	 	 
	Rheem Furry Gas 50	 	8	 
	 	 	 	 
	Rheem Gas 75/50 Gallon cap	 	2	 
	 	 	 	 
	Rinnai on demand 75/50 gallon cap	 	30	 
	 	 	 	 
	Spa Rheem gas 75gl cap	 	1	 

 

    	 

    	 

     

	 	Emergency Back up Generator
	 	 
	Make:	 
	 	 
	Kohler Power System	1
	 	 
	Model:	 
	 	 
	35RZ	 

 

    	 

    	 

     

	 	 	Grounds Shop Tool Inventory
	 	 	 
	Digging Bar	 	2
	Hand held  Pole saw	 	1
	Pick axe	 	3
	Pitch Fork	 	1
	Post Hole Diggers	 	2
	Push Broom	 	2
	Rakes	 	16
	Scraper	 	2
	Shovels	 	16
	Tamper	 	1
	 	 	 
	 	 	 
	25 Gallon Sprayer	 	2
	Aerator	 	1
	Back pack Sprayer	 	2
	Blowers	 	5
	Chain Saw	 	1
	Electric hedge trimmer	 	1
	Fertilizer spreader	 	4
	Lawn Mower	 	2
	Pole Saw	 	1
	Pressure Washer	 	1
	Push Mower	 	1
	Weed Eater	 	2
	Wheel Barrel	 	1

 

    	 

    	 

     

	AREA	 	ITEM	 	DESCRIPTION	 	QUANTITY
	Executive Office	 	 	 	 	 	 
	 	 	Desktop Computer	 	 	 	10
	 	 	Laptop	 	 	 	1
	 	 	Wired Telephone 	 	 	 	10
	 	 	Desk	 	Wood	 	11
	 	 	File Cabinet	 	Wood with Drawers	 	6
	 	 	File Cabinet	 	Metal	 	5
	 	 	Armoire	 	Wood  	 	1
	 	 	Xerox Copier	 	LEASED	 	2
	 	 	Printer	 	Dell	 	3
	 	 	Desk Lamp	 	 	 	1
	 	 	Executive Chair	 	Black	 	14
	 	 	Arm Chairs	 	Fabric - Wood	 	7
	 	 	Bookshelf	 	Wood	 	2
	 	 	Television	 	Flatscreen	 	1
	 	 	Shelves	 	 	 	6
	 	 	Artwork	 	Various/Framed	 	4
	 	 	Fax Machine	 	 	 	1
	 	 	Refrigerator	 	Full Size	 	1
	 	 	Microwave	 	 	 	1
	 	 	 	 	 	 	 
	Front Office	 	 	 	 	 	 
	 	 	Desktop Computer	 	 	 	9
	 	 	Key Machine	 	 	 	1
	 	 	Wired Telephone 	 	 	 	7
	 	 	Desk	 	 	 	3
	 	 	File Cabinet	 	 	 	3
	 	 	Credenza	 	 	 	2
	 	 	Xerox Copier	 	LEASED	 	1
	 	 	Printer	 	 	 	6
	 	 	Small End Table	 	 	 	3
	 	 	Desk & Floor Lamp	 	 	 	4
	 	 	Formal Arm Chairs	 	Wood chair at check in	 	6
	 	 	Red Arm Chair	 	Waiting area	 	2
	 	 	Tan Arm Chair + 4 pillows	 	Waiting area	 	7
	 	 	End Table	 	Leather	 	4
	 	 	Leather Folders	 	 	 	27
	 	 	Executive Chair	 	 	 	6
	 	 	Wheel Chair	 	 	 	1
	 	 	Plants	 	 	 	9
	 	 	Large Mirror	 	 	 	1
	 	 	Artwork	 	 	 	6
	 	 	Water Urn	 	 	 	1
	 	 	Easel	 	 	 	1
	 	 	Trash Can	 	 	 	7

 

    	 

    	 

     

	Reservations	 	Including Side Revenue Manager Office	 	 	 	 
	 	 	Desktop Computer	 	 	 	9
	 	 	Additional Monitors	 	 	 	7
	 	 	Laptop	 	 	 	1
	 	 	Wired Telephone 	 	 	 	9
	 	 	Phone Headset	 	 	 	7
	 	 	Computer Headset	 	 	 	7
	 	 	Desk	 	 	 	3
	 	 	Cubicle	 	 	 	6
	 	 	File Cabinet	 	 	 	6
	 	 	Side Table with Shelves	 	 	 	4
	 	 	Xerox Copier	 	LEASED - In side office	 	1
	 	 	Printer	 	 	 	3
	 	 	Fax Machine	 	 	 	1
	 	 	Desk Lamp	 	 	 	6
	 	 	Executive Chair	 	 	 	9
	 	 	White/Cork Boards	 	 	 	4
	 	 	Mini Refrigerator	 	 	 	1
	 	 	 	 	 	 	 
	Business Center	 	 	 	 	 	 
	 	 	Desktop Computer	 	 	 	2
	 	 	End Table	 	Wood	 	1
	 	 	Desk	 	 	 	2
	 	 	Printer	 	 	 	1
	 	 	Executive Chair	 	 	 	2
	 	 	 	 	 	 	 
	Lodge Common Space	 	 	 	 	 	 
	 	 	Game Table with Games	 	Wood	 	2
	 	 	Game Chairs	 	Wood	 	4
	 	 	Wicker Chair	 	with cushion	 	4
	 	 	Leather Arm Chair	 	 	 	6
	 	 	Leather Sofa	 	 	 	1
	 	 	Coffee Table	 	 	 	2
	 	 	Round Table	 	Wood	 	3
	 	 	Credenza	 	 	 	3
	 	 	Marble Island	 	 	 	1
	 	 	Chest	 	Wooden	 	2
	 	 	Art Book	 	Impressionism	 	2
	 	 	Side Table	 	Wood	 	2
	 	 	Wine Refrigerator	 	 	 	1
	 	 	Ottoman	 	 	 	1
	 	 	Mirror	 	 	 	1
	 	 	Artwork	 	 	 	6
	 	 	Phone	 	 	 	1
	 	 	Desk Lamp	 	 	 	2
	 	 	Floor Lamp	 	 	 	1
	Valet	 	 	 	 	 	 
	 	 	Golf Cart	 	Star Cart	 	2
	 	 	Cart Charger	 	 	 	1
	 	 	Bell Luggage Cart	 	 	 	3
	 	 	Lantern	 	 	 	8
	 	 	L.E.D. Lights	 	 	 	5
	 	 	Window Washer	 	 	 	3
	 	 	Propane Heater	 	 	 	2
	 	 	Refrigerator 	 	Wine Fridge for Water 	 	1
	 	 	Ice Chest	 	 	 	2
	 	 	Patio Love Seat	 	 	 	1
	 	 	Radios	 	 	 	7

 

    	 

    	 

     

 

 

 

 

 

EXHIBIT 1(M) -
ii

PERSONAL PROPERTY
- L'AUBERGE DE SEDONA

 

	Room#	1	2	3	4	5	6	7	8	9	10	11	12	14	15	16	17	18	19	20	21	22	23	24	25	26	27	28	29	30	31	32	33	55	56	57	58	59	60	61	62	63	64	65	66
	Bed	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	Q2	Q2	1	1	1	1	Q1	1	1	1	Q1	1	1	1	1	1	1	1
	Headboard	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	Q2	Q2	1	1	1	1	Q1	1	1	1	1	1	1	1	1	1	1	1
	TV	1	2	1	1	2	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	3	3	1	1	1	1	1	1	1	1	1	2	1	2	1	1	1	1
	sofa
    bed	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	 	 	 	 	 	1	1	 	1	 	 	 	 
	Desk	1	1	1	1	1	 	 	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	 	 	1	1	1	1	1	1	1	1	1
	Armoir	1	1	 	 	1	1	 	1	1	 	 	1	 	1	1	1	1	1	1	1	1	1	1	1	1	1	2	2	1	1	1	1	 	 	 	 	 	 	1	 	1	1	1	1
	safe
    box	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1
	Dresser	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	1	1	1	 	 	 	 	 	 	 	 	 
	Fri
    cabinet	 	1	 	 	1	 	 	 	 	 	 	 	 	1	1	1	 	1	1	1	 	1	1	1	1	1	 	 	1	 	 	 	1	1	1	1	1	 	 	 	 	 	 	 
	chairs	1	2	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	2	2	2	 	2	 	1	2	1	2	2	2	2
	ottoman	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	 	 	 	 	 	 	1	1	1	1	1	1
	F-Lamps	1	1	1	1	1	2	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	 	1	1	1	1	 	1	 	1	 	 	 	 
	Lamps	3	3	3	3	3	2	2	3	3	3	3	3	3	3	3	3	3	3	3	3	3	3	3	3	3	3	5	5	3	3	3	3	3	2	3	3	3	3	3	3	3	3	3	3
	Nighstand	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	4	4	2	2	2	2	2	2	2	2	2	 	 	 	 	 	 	 
	Refrigerator	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	2	2	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1
	Kitch-
    table	 	 	 	 	 	1	1	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	desk-chair	1	1	1	1	1	2	2	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	 	 	1	1	1	1	1	1	1	1	1
	ironing
    board	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1
	iron	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1
	Luggage
    rack	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	2	2	1	1	1	1	2	2	2	1	1	1	1	1	1	1	1	1
	stools	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	1	1	1	 	1
	Ihome	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	 	 	1	1	1	1	 	 	 	 	 	1	1	1	1	1	1	1
	lugg
    bench	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	 	2	2	1	1	1	1	 	 	1	1	1	1	1	1	1	1	1	1
	clock
    radio	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	2	2	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1
	hangers	14	14	14	14	14	14	14	14	14	14	14	14	14	14	14	14	14	14	14	14	14	14	14	14	14	14	28	28	14	14	14	14	14	14	14	14	14	14	14	14	14	14	14	14
	coffee
    maker	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1
	ice
    bucket	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1
	Glasses	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	4	4	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2
	coffee
    mugs	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	4	4	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2
	make
    up mirr	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	2	2	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1
	Phone	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	2	2	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1
	coffee
    table	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	 	 	 	1	1	1	1	1	1	1	1	1
	Q
    pillows	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	4	4	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2
	king
    pillows	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	4	4	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2
	blankets	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	 	 	 	 	 	1	1	 	1	 	 	 	 
	duvets	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	Q2	Q2	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1
	door
    mats	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1
	art
    work	1	 	1	 	1	1	1	1	1	1	1	1	2	2	2	2	2	2	2	2	2	2	2	2	2	2	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1
	Wall
    mirror	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	1	1	1	1	1	1	1
	Satin
    hangers	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	4	4	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2
	patio
    table	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1
	patio
    chairs	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	4	4	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2
	lounch
    chairs	1	1	1	1	1	1	1	1	 	 	 	 	 	1	1	1	1	1	1	1	1	1	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	1	1	1	1	1	1	1
	patio
    umbrellas	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	sheer
    drapes	2	2	2	2	2	 	2	2	2	2	2	2	 	2	2	2	2	2	2	2	2	2	 	2	2	2	2	2	2	2	2	2	 	 	 	 	 	6	2	6	2	2	2	2
	black
    out drapes	2	4	2	4	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	 	 	 	 	 	4	2	4	2	2	2	2
	Blinds	2	 	2	 	2	2	1	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	4	4	2	2	2	3	7	5	4	5	4	3	3	3	3	3	3	3
	waste
    basket	3	3	3	3	3	3	3	3	3	3	3	3	3	3	3	3	3	3	3	3	3	3	3	3	3	3	3	3	3	3	3	3	3	3	3	3	3	3	3	3	3	3	3	3
	tissue
    cover	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	2	2	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1
	amenitie
    holder	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	2	2	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1
	dish
    soap	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	1	2	2	2	2	2	2	2
	ashtrays	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	2	2	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1
	flower
    vases	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	2	2	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1

  

 

    	 

    	 

     

 

	Room
    #	67	68	70	71	80	81	82	83	84	85	86	87	88	90	91	92	93	94	95	96	97	98	435	436	437	438	439	440	441	442	443	444	544	545	546	547	548	550	551	552	553	554	 	 
	Bed	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	Q1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	 	 
	Headboard	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	Q1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	 	 
	TV	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	 	 
	sofa
    bed	 	 	 	 	 	 	 	 	 	 	 	 	 	1	1	1	1	1	1	1	1	1	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Desk	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	 	 
	Armoir	1	1	1	1	1	1	1	1	1	1	1	1	1	 	 	 	 	 	 	 	 	 	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	 	 
	safe
    box	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	 	 
	Dresser	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	 	 
	Fri
    cabinet	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	chairs	2	2	2	2	2	2	2	2	2	2	2	2	2	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	2	1	1	1	1	1	1	1	1	1	 	 
	ottoman	1	1	1	1	1	1	1	1	1	1	1	1	1	1	 	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	 	1	1	1	1	1	1	1	1	1	 	 
	F-Lamps	 	 	 	 	 	 	 	 	 	 	 	 	 	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	 	 
	Lamps	3	3	3	3	3	3	3	3	3	3	3	3	3	3	3	3	3	3	3	3	3	3	3	3	3	3	3	3	3	3	3	3	3	3	3	3	3	3	3	3	3	3	 	 
	Nighstand	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	 	 
	Refrigerator	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	 	 
	Kitch-
    table	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	 	 
	desk-chair	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	 	 
	ironing
    board	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	 	 
	iron	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	 	 
	Luggage
    rack	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	1	1	1	1	1	1	1	1	1	1	2	1	1	1	1	1	1	1	1	1	 	 
	stools	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Ihome	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	lugg
    bench	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	 	 	1	1	1	1	1	1	1	1	 	 
	clock
    radio	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	 	 
	hangers	14	14	14	14	14	14	14	14	14	14	14	14	14	14	14	14	14	14	14	14	14	14	14	14	14	14	14	14	14	14	14	14	14	14	14	14	14	14	14	14	14	14	 	 
	coffee
    maker	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	 	 
	ice
    bucket	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	 	 
	Glasses	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	 	 
	coffee
    mugs	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	 	 
	make
    up mirr	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	 	 
	Phone	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	 	 
	coffee
    table	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Q
    pillows	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	 	 
	king
    pillows	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	 	 
	blankets	 	 	 	 	 	 	 	 	 	 	 	 	 	1	1	1	1	1	1	1	1	1	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	duvets	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	 	 
	Door
    mats	1	1	1	1	1	1	1	1	1	1	1	1	1	2	1	1	1	1	1	1	1	1	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	art
    work	1	1	1	1	1	1	1	1	1	1	1	1	1	2	2	2	2	2	2	2	2	2	2	2	2	2	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	wall
    mirrors	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Satin
    hangers	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	 	 
	patio
    table	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	 	 
	patio
    chairs	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	 	 
	Lounge
    chairs	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Patio
    umbrellas	 	 	 	 	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	sheer
    drapes	2	2	2	2	6	6	6	6	6	6	6	6	6	6	6	6	6	6	6	6	6	6	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	black
    out drapes	2	2	2	2	6	6	6	6	6	6	6	6	6	6	6	6	6	6	6	6	6	6	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Blinds	3	3	3	3	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	3	3	3	3	3	3	3	3	3	3	7	3	3	3	3	3	3	3	3	3	 	 
	waste
    basket	3	3	3	3	3	3	3	3	3	3	3	3	3	3	3	3	3	3	3	3	3	3	3	3	3	3	3	3	3	3	3	3	3	3	3	3	3	3	3	3	3	3	 	 
	tissue
    cover	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	 	 
	amenitie
    holder	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	 	 
	dish
    soap	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	2	1	1	1	1	1	1	1	1	1	1	2	1	1	1	1	1	1	1	1	1	 	 
	ashtrays	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	 	 
	Flower
    vases	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	1	 	 

 

 

 

 

    	 

    	 

     

 

 

 

FIRE EXTINGUISHERS

 

	 	 	 	 	QTY
	 	 	 	 	 
	1	 	Sales Office 2nd floor north exit	 	1
	2	 	Executive offices Data area	 	1
	3	 	Oasis EDR	 	1
	4	 	Housekeeping laundry room	 	1
	5	 	Banquets storage	 	1
	6	 	Cezzanne	 	1
	7	 	IT Room Hallway	 	1
	8	 	Common area South walkway	 	1
	9	 	Matisse	 	1
	10	 	Monnet	 	1
	11	 	Reservations	 	1
	12	 	Vallet Stand	 	1
	13	 	Creek side Dining station	 	1
	14	 	Verranda Bar	 	1
	15	 	Restaurant Fire Place	 	1
	16	 	Main Kitchen #1	 	1
	17	 	Main Kitchen #2	 	1
	18	 	Main Kitchen #3	 	1
	19	 	Main Kitchen #4	 	1
	20	 	Main Kitchen #5	 	1
	21	 	Main Kitchen "K" Type	 	1
	22	 	Main Kitchen outside Rear Door	 	1
	23	 	EDR "K" Type	 	1
	24	 	EDR Kitchen	 	1
	25	 	Creek House 2nd Floor	 	1
	26	 	Wine Room Creek House	 	1
	27	 	Creek House public R/R	 	1
	28	 	PBX	 	1
	29	 	PBX Hallway	 	1
	30	 	Spa Break room	 	1
	31	 	Artist Cottage	 	1
	32	 	Parking Garage @ Eng. Cage	 	1
	33	 	Eng Office	 	1
	34	 	Cottage 1	 	1
	35	 	Cottage 3	 	1
	36	 	Cottage 28	 	1
	37	 	Cottage 30	 	1
	38	 	Pool  	 	1

 

    	 

    	 

     

 

 

 

 

Exhibit 1(m)-iii

 

Orchards Inn Personal
Property Inventory

 

    	 

    	 

      

	 	 	Orchards Inn Inventory	 	 
	 	 	 	 	 
	#	 	Item	 	 
	 	 	Optiplex 755 Computer	 	Front Office Workstation
	2	 	Optiplex 620 Computer	 	Front Office Workstation
	1	 	Dell Inspiron One Computer	 	Computer for guest use
	1	 	HP Laserjet M2727nf Printer	 	Printer/Scanner/Fax Machine
	1	 	De112350dn Printer	 	Printer for Front Desk
	1	 	Hp LaserjetP1102W Printer	 	Printer for guest use
	1	 	Panasonic KX-P1150 Printer	 	Inhouse Phone call charge Printer
	1	 	Hp Laserjet P1006	 	Printer for Front Desk/ Charles' Desk
	1	 	Leather Chair	 	In Lobby
	1	 	Leather Love Seat	 	In Lobby
	1	 	Bench	 	In Lobby
	2	 	Lamps	 	In Lobby
	5	 	Tables	 	In Lobby
	1	 	42" Vizio TV	 	In Lobby
	1	 	Microwave	 	In Lobby
	1	 	Safe	 	In Lobby
	1	 	Safe Deposit Boxes for Employee 

Banks and guest use (7 Boxes)	 	 

 

    	 

    	 

     

'HOUSEKEEPING OFrICE 

2 refrigerator

1 microwave

3 coffeemake 12oz

5 hair drayers

4 irons

10 coffecraft 4 oz

5 Q dubet insert

6 K dubet insert

4 K mattress cover

6 Q mattress cover

2 k blankets

3 crib blankets

3 crib sheets

1 crib mattress cover

1 computer

1 printer

1 desk

1 nigth stand

6 arm chair

1 baunquets table

2 folder cabinets

1 desk chair

 

STORAGE CLOSETS

 

	1st floor	2nd floor	3rd floor	annex
	1 rolloway	1 rolloway	1 rolloway	2rolloway
	1 crib	1 crib	1 crib	2 rolloway
	1vacuum	1vacuum	2 dvd players	 
	1 hskp car	1 hskp car	6 microwave	 
	 	 	8 pillows	8 pillows
	 	 	1vacuum	2vacuum
	 	 	1 hskp car	2 hskp car

 

    	 

    	 

     

Taos

 

	 	·	Interior Tables — 29

	 	·	Interior chairs — 78

	 	·	Bar stools — 20

	 	·	Patio Tables — 17

	 	·	Exterior Chairs — 66

 

	 	·	3 — 5' Salad Sandwich Prep

	 	·	1— 4' low reach in

	 	·	1— tall single door refrigerator

	 	·	2 — 6 burner ovens

	 	·	1— 4' steam table

	 	·	2 — 4' infrared food warmers

	 	·	2 — commercial microwaves

	 	·	1— Hobart floor mixer

	 	·	1— Sammic Food Processor

	 	·	1— Robo Coup II food processor

	 	·	2 — Hand Held Robo Coup Hand mixers

	 	·	1— walk in/Freezer

	 	·	1— Beer Cooler

	 	·	1 — 1406 Ice-O-Matic Ice machine

	 	·	2 — 4' Beer reach in

	 	·	3- 3 compartment sinks

	 	·	1— Hand Wash sink

	 	·	1— Glass washer

	 	·	1— Dishwasher

	 	·	1— Hot water heater

	 	·	2 — Vita-Mix Blenders

	 	·	12 — Black Tubs

	 	·	1— Exhaust Hood

	 	·	13 — Exhaust hood filter

	 	·	2 — 8' Prep Tables

	 	·	5 — 4' plastic shelves

	 	·	4 — Stainless shelving units

 

ENGINEERING OFFICE 

 

6 — DVD players 3

3— Room phones

5 5— TV Remotes

 

    	 

    	 

     

Exhibit 1(m)-iii

 

TAOS - CHINA AND GLASSWARE 

 

	 	·	17 dz —12" Dinner Plates

	 	·	3 dz —12" Bowl

	 	·	4 dz — 7.5" side plate

	 	·	8 dz — 7.5" cup plate

	 	·	8 dz-10oz Crock

	 	·	5 dz — casserole plate

	 	·	11 dz — skateboard plate

	 	·	8 dz — Molcajete Bowls 8.5 oz

	 	·	5 dz — Molcajete Bowls 2.5 oz

	 	·	7 dz — 5.5 side plate

	 	·	4 dz — coffee cup 7oz

	 	·	2 dz — 6.5 oz cup

	 	·	5 dz — yellow baskets

	 	·	12dz- Pepsi Plastic cups 16oz

	 	·	7 dz- Pepsi kids cups 8oz

	 	·	7 dz Dessert spoons

	 	·	18 dz — Dinner fork

	 	·	20 dz —Dinner Knives

	 	·	5 dz — teaspoons

	 	·	7 — Large oval serving trays

 

	 	·	12 -Libbey Pitcher glass 60oz

	 	·	5 dz — Wine glasses

	 	·	5 dz — Margarita Glasses

	 	·	4 dz — Short Glasses

	 	·	6 dz — Rock Glasses

	 	·	6 dz —Pint Glasses

	 	·	2 dz — Martini Glasses

 

    	 

    	 

     

 

 

 

 

Exhibit 1(m)-iv

 

Schnebly Road Personal Property Inventory

 

    	 

    	 

     

270 Schnebly

 

Unit 1

 

	 	·	3 — beds

	 	·	1— refridg.

	 	·	1— Stove

	 	·	1— Washer and

	 	·	1— dryer

	 	·	1— water heater

	 	·	1— dishwasher

	 	·	1— kitchen table

	 	·	4 — chairs

 

Unit 2

 

	 	·	1— Bed

	 	·	1— stove

	 	·	1— refridg.

	 	·	1— table

	 	·	3 — chairs

	 	·	1— dishwasher

	 	·	1— washer and dryer

	 	·	1— water heater

 

Unit 3

 

	 	·	1— bed

	 	·	1— stove

	 	·	1— refridg.

	 	·	1— table

	 	·	4 — chairs

	 	·	1— dishwasher

	 	·	1— washer and dryer

	 	·	1— water heater

 

    	 

    	 

     

 

 

 

EXHIBIT 1(M) - V

PERSONAL PROPERTY - ORCHARDS ANNEX PROPERTY
LEASE

 

 

	Room #:	 	400	 	401	 	402	 	403	 	404	 	405	 	406	 	407	 	408	 	409	 	410	 	411	 	412	 	413	 	420	 	421	 	422	 	423	 	424	 	425	 	426	 	427	 	428	 	429	 	430	 	431	 	432	 	433	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	TV	 	1	 	2	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	2	 	2	 	1	 	1	 	1	 	2	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	2	 	2	 	1	 	1	 
	CREDENZA	 	 	 	 	 	1	 	 	 	1	 	1	 	1	 	1	 	1	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	1	 	 	 	1	 	1	 	1	 	1	 	1	 	 	 	 	 	 	 	 	 	 	 
	NIGHSTAND	 	2	 	2	 	1	 	2	 	1	 	2	 	1	 	1	 	2	 	2	 	2	 	2	 	1	 	2	 	2	 	2	 	1	 	2	 	1	 	2	 	1	 	1	 	2	 	2	 	2	 	2	 	2	 	2	 
	COFFEE TABLE	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	 	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 
	FLOOR LAMP	 	 	 	1	 	3	 	 	 	2	 	1	 	1	 	2	 	 	 	 	 	1	 	1	 	 	 	 	 	 	 	1	 	3	 	 	 	2	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	 	 	 	 
	LAMPS	 	2	 	3	 	2	 	2	 	2	 	3	 	1	 	1	 	2	 	2	 	3	 	3	 	1	 	2	 	2	 	3	 	2	 	3	 	2	 	2	 	2	 	2	 	2	 	2	 	3	 	3	 	2	 	2	 
	LOUNGE CHAIR	 	 	 	1	 	1	 	1	 	1	 	 	 	 	 	 	 	 	 	 	 	1	 	1	 	 	 	 	 	 	 	1	 	 	 	1	 	1	 	 	 	 	 	 	 	 	 	 	 	1	 	1	 	 	 	 	 
	OTTOMAN	 	 	 	1	 	1	 	1	 	1	 	 	 	 	 	 	 	 	 	 	 	1	 	1	 	 	 	 	 	 	 	1	 	 	 	1	 	1	 	 	 	 	 	 	 	 	 	 	 	1	 	1	 	 	 	 	 
	DVD	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 
	SOFA BED	 	1 F	 	1 F	 	1 F	 	1 F	 	1 F	 	1T	 	1 F	 	1 F	 	1T	 	1 F	 	1 F	 	1 F	 	1 F	 	1 F	 	1 F	 	1 F	 	1 F	 	1 F	 	1 F	 	1T	 	1 F	 	1 F	 	1T	 	1 F	 	1 F	 	1 F	 	1 F	 	1 F	 
	PHONE	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 
	CLOCK RADIO	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	 	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 
	HAIR DRYER	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 
	COFFEEMAKER	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 
	COFFEE CUP	 	2	 	2	 	2	 	2	 	2	 	2	 	2	 	2	 	2	 	2	 	2	 	2	 	2	 	2	 	2	 	2	 	2	 	2	 	2	 	2	 	2	 	2	 	2	 	2	 	2	 	2	 	2	 	2	 
	GLASSES	 	4	 	4	 	4	 	4	 	4	 	4	 	4	 	4	 	4	 	4	 	4	 	4	 	4	 	4	 	4	 	4	 	4	 	4	 	4	 	4	 	4	 	4	 	4	 	4	 	4	 	4	 	4	 	4	 
	REFRIGERATOR	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 
	LUGGAGE RACK	 	1	 	1	 	2	 	1	 	2	 	1	 	2	 	2	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	2	 	1	 	2	 	1	 	2	 	2	 	1	 	1	 	1	 	1	 	1	 	1	 
	AMOIRE	 	1	 	1	 	1	 	1	 	 	 	 	 	 	 	 	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	 	 	1	 	 	 	 	 	 	 	 	 	 	 	1	 	1	 	1	 	1	 	1	 
	ICE BUCKET	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 
	IRON	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 
	IRONING BOARD	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 
	DRESSER	 	 	 	1	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	1	 	1	 	 	 	 	 	 	 	1	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	1	 	1	 	 	 	 	 
	BEDS	 	1	 	1	 	2	 	1	 	2	 	1	 	2	 	2	 	1	 	1	 	1	 	1	 	1	 	2	 	1	 	1	 	2	 	1	 	2	 	1	 	2	 	2	 	1	 	1	 	1	 	1	 	1	 	1	 
	HEADBOARDS	 	1	 	1	 	2	 	1	 	2	 	1	 	2	 	2	 	1	 	1	 	1	 	1	 	1	 	2	 	1	 	1	 	2	 	1	 	2	 	1	 	2	 	2	 	1	 	1	 	1	 	1	 	1	 	1	 
	DUVET INSERT	 	1K	 	1K	 	2Q	 	1K	 	2Q	 	1K	 	2Q	 	2Q	 	1K	 	1K	 	1K	 	1K	 	1K	 	2Q	 	1K	 	1K	 	2Q	 	1K	 	2Q	 	1K	 	2Q	 	2Q	 	1K	 	1K	 	1K	 	1K	 	1K	 	1K	 
	BLANKETS	 	1K	 	1K	 	2Q	 	1K	 	2Q	 	1K	 	2Q	 	2Q	 	1K	 	1K	 	1K	 	1K	 	1K	 	2Q	 	1K	 	1K	 	2Q	 	1K	 	2Q	 	1K	 	2Q	 	2Q	 	1K	 	1K	 	1K	 	1K	 	1K	 	1K	 
	END TABLE	 	 	 	1	 	1	 	 	 	1	 	 	 	 	 	 	 	 	 	 	 	1	 	1	 	 	 	1	 	 	 	1	 	1	 	1	 	1	 	 	 	 	 	 	 	 	 	 	 	1	 	1	 	1	 	 	 
	KITCHEN TABLE	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 
	KITCHEN CHAIR	 	2	 	2	 	2	 	2	 	2	 	2	 	2	 	2	 	2	 	2	 	2	 	2	 	2	 	2	 	2	 	2	 	2	 	2	 	2	 	2	 	2	 	2	 	2	 	2	 	2	 	2	 	2	 	2	 
	MICROWAVE	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 
	MIRRORS	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 	1	 
	WINDOW COVERINGS	 	2	 	2	 	1	 	1	 	2	 	1	 	1	 	1	 	1	 	2	 	1	 	1	 	2	 	2	 	2	 	1	 	1	 	1	 	2	 	2	 	1	 	1	 	2	 	2	 	2	 	2	 	1	 	1	 
	ARTWORK	 	3	 	6	 	7	 	5	 	6	 	3	 	2	 	2	 	2	 	5	 	6	 	6	 	4	 	3	 	4	 	6	 	7	 	5	 	6	 	2	 	2	 	3	 	2	 	4	 	6	 	5	 	5	 	5	 

 

 

Key: 1F = 1 Full Sofa Bed

1T = 1 Twin Sofa Bed

1K = 1 King

2Q = 2 Queen

 

    	 

    	 

     

 

 

 

 

Exhibit 1(m)-vi

 

Personal Property
Inventory (Orchards Inn Parking Lease)

 

NONE

 

    	 

    	 

     

 

 

 

 

Exhibit 1(m)-vii

 

Sinagua Plaza Storage
Lease Personal Property Inventory

 

    	 

    	 

     

Personal Property Inventory —
Owned by L'Auberge (stored at Sinagua Plaza).

 

	Access Panels	 	 	4	 
	Air Curtain	 	 	1	 
	Barthroom Cabinets	 	 	2	 
	Broken Refrigerator cabinet	 	 	2	 
	Carpet Pad	 	 	22	 
	Ceiling fan	 	 	1	 
	Check Box	 	 	7	 
	Cushions misc	 	 	28	 
	Custom desk lamp	 	 	10	 
	Damaged Tall White spa Chair	 	 	1	 
	Dining Table 28/29	 	 	1	 
	Fabric and carpet pads	 	 	7	 
	Gold Lamp Shades	 	 	10	 
	Green dining chairs for 28/29	 	 	3	 
	Grout	 	 	2	 
	Upolstered Chairs	 	 	10	 
	Highback bar stool	 	 	1	 
	King size headborads lodge	 	 	2	 
	Kitchen Well	 	 	1	 
	i_eather Chairs	 	 	2	 
	,..odge Cabinet no top	 	 	1	 
	Lodge End table/night stand	 	 	8	 
	Marble back splash	 	 	8	 
	Misc. Lampshades	 	 	46	 
	Oval Coffee table	 	 	1	 
	Peerless stand	 	 	1	 
	Spa cottage tv cabinet	 	 	6	 
	Spa lamps bed side no lamp shades	 	 	6	 
	Thumbprint Security Door	 	 	1	 
	Toilet Tank	 	 	1	 
	Vista Suite Refer Cabinet	 	 	2	 
	White upright spa suite lamps	 	 	6	 

 

    	 

    	 

     

 

 

 

 

Exhibit 1(m)-viii

 

Personal Property
Inventory (Sinagua Plaza Parking Lease)

 

NONE

 

 

    	 

    	 

     

 

 

 

Personal Property
Inventory Affordable Housing Lease

Exhibit 1(m)-ix

 

Room 414

 

	 	·	1— dresser

	 	·	2 — chairs

	 	·	1— stove

	 	·	1— microwave

	 	·	1— refridg.

	 	·	1— Table

	 	·	1—TV

 

Room 415

 

	 	·	3 — chairs

	 	·	1—TV

	 	·	1— Bed

	 	·	1— Microwave

	 	·	1— small table

	 	·	2 — night stands

	 	·	2 — lamps

 

Rooms 434 & 435

 

	 	·	1— Refidg.

	 	·	1— Stove

	 	·	1— Microwave

	 	·	2 — TV's

	 	·	2 — night stands

	 	·	1- bed and box spring

	 	·	2 - cable Boxes

	 	·	2 — Armour

	 	·	1— Dresser

	 	·	2 — Chairs

	 	·	4 — Lamps

 

    	 

    	 

     

 

 

 

Personal Property Inventory Temporary
Housing Lease

Exhibit 1(m)-x

 

ROOM 419 

 

CREDENZA - 1

COFFEE MAKER - 1

 

Room 418

 

	 	·	2 — queen beds

	 	·	1- mini refridg.

	 	·	1— microwave

	 	·	1— nightstand

	 	·	1— little table

	 	·	2 — Amoire

	 	·	1— DVD Player

	 	·	1— Coffee maker

	 	·	2 — chairs

 

Room 419

 

	 	·	1— king bed

	 	·	1- mini refridg.

	 	·	1— microwave

	 	·	2 — nightstands

	 	·	1— little table

	 	·	2 — chairs

	 	·	1—coffee maker

	 	·	1— credenza

 

Room 436

 

	 	·	2 — beds

	 	·	1- mini refridg.

	 	·	1— microwave

	 	·	1— nightstand

	 	·	1— little table

	 	·	3 — chairs

	 	·	Fireplace

 

    	 

    	 

     

Room 437

 

	 	·	1— Bed

	 	·	1— microwave

	 	·	1- nightstand

	 	·	1— little table

	 	·	2 — chairs

	 	·	1— dresser

	 	·	1— little refridg.

 

Room 438

 

	 	·	2 — Beds

	 	·	1— dresser

	 	·	1— microwave

	 	·	1— mini-refridg.

	 	·	1— Fireplace

	 	·	2 — nightstands

 

    	 

    	 

     

 

 

 

 

EXHIBIT 2(c)

 

LA MERRA

 

EXHIBIT B 

PERMITTED ENCUMBRANCES

 

1. Property taxes, which are a lien not yet due and payable,
including any assessments collected with taxes to be levied for the year 2013.

 

5.LIABILITIES AND OBLIGATIONS imposed upon said land
by reason of its inclusion within the following named District

Retreat at Oak Creek Domestic Water Improvement District

 

6.EASEMENT and rights incident thereto, as set forth
in instrument: Recorded in Book 184 of Deeds

Page 449

Purpose telephone lines

 

7.EASEMENT and rights incident thereto, as set forth
in instrument Recorded in Book 188 of Deeds

Page 452

Purpose electric power transmission line

 

8.EASEMENT and rights incident thereto, as set forth
in instrument: Recorded in Book 217 of Official Records

Page 239

Purpose ingress and egress

 

9.EASEMENT and rights incident thereto, as set forth
in instrument Recorded in Book 1351 of Official Records

Page 220

Purpose electric transmission line

 

10.           EASEMENT
and rights incident thereto, as set forth in instrument: Recorded in Book 1351 of Official Records

Page 286

Purpose electric transmission line

 

11.           EASEMENT
and rights incident thereto, as set forth in instrument: Recorded in Book 1351 of Official Records

Page 314

Purpose electric lines

 

12.           EASEMENT
and rights incident thereto, as set forth in instrument: Recorded in Book 1351 of Official Records

Page 319

Purpose electric lines

 

    	 

    	 

     

13.EASEMENT and rights incident thereto, as set forth
in instrument:

Recorded in Book 3833 of Official Records

Page 934

Purpose access and utilities

 

14.MATTERS SHOWN ON SURVEY:

Recorded in Book 164 of Land Surveys

Page 57

 

15.Covenants, conditions, restrictions
and easements but omitting any covenants or restrictions, if any, including but not limited to those based upon race, color, religion,
sex, sexual orientation, familial status, marital status, disability, handicap, national origin, ancestry, source of income, gender,
gender identity, gender expression, medical condition or genetic information, as set forth in applicable state or federal laws,
except to the extent that said covenant or restriction is permitted by applicable law, as set forth in the document

Recorded in Book 4513 of Official Records

Page 848

Liens and charges as set forth in the above mentioned declaration,

Payable to: The Retreat Property Company, L.L.C., an Arizona
limited liability company

 

16.EASEMENTS, RESTRICTIONS,
RESERVATIONS, CONDITIONS AND SET-BACK LINES as set forth on the plat recorded in Book 61 of Maps and Plats, page 27, but deleting
any covenants, condition or restriction indicating a preference, limitation or discrimination based on race, color, religion, sex,
handicap, familial status, or national origin to the extent such covenants, conditions or restrictions violated 42 USC 3604(c).

 

17.EASEMENT and rights incident
thereto, as set forth in instrument

Recorded in Book 4602 of Official Records

Page 218

Purpose electric lines, other utility lines and facilities

(Affects Lot 32)

 

18.EASEMENT and rights incident thereto, as set forth
in instrument:

Recorded in Book 4602 of Official Records

Page 219

Purpose electric lines, other utility lines and facilities

(Affects Lot 31)

 

19.EASEMENT and rights incident thereto, as set forth
in instrument:

Recorded in Book 4602 of Official Records

Page 220

Purpose electric lines, other utility lines and facilities

(Affects Lots 29 and 38)

 

20.EASEMENT and rights incident thereto, as set forth
in instrument

Recorded in Book 4602 of Official Records

Page 221

 

    	 

    	 

     

Purpose electric lines, other utility lines and facilities

(Affects Lots 27 and 28)

 

21.EASEMENT and rights incident thereto, as set forth
in instrument:

Recorded in Book 4602 of Official Records

Page 222

Purpose electric lines, other utility lines and facilities

(Affects Lot 20)

 

22.EASEMENT and rights incident thereto, as set forth
in instr►mnent:

Recorded in Book 4602 of Official Records

Page 224

Purpose electric lines, other utility lines and facilities

(Affects Lot 16 and Tract C)

 

23.BASEMENT and rights incident thereto, as set forth
in instrument

Recorded in Book 4602 of Official Records

Page 225

Purpose electric lines, other utility lines and facilities

(Affects Lot 1)

 

24.Reservations, exceptions and provisions contained
in the patent and in the acts authorizing the issuance thereof

 

25.Water rights, claims or title to water, whether
or not disclosed by the public records.

 

26.Any rights of the parties in possession of a portion
of, or all of, said Land, which rights are not disclosed by the public records.

 

27.A deed of trust to secure an indebtedness in the
amount shown below,

Amount: $32,000,000.00

Dated: June 11, 2007

Trustor/Orantor HL, LLC

Trustee: Fidelity National Title Insurance Agency of Coconino,
Inc.

Beneficiary: IMH Secured Loan Fund, LLC

Recording Date: June 11, 2007

Book 4513 of Official Records

Page 768

An agreement to modify the terms and provisions of said deed
of trust as therein provided

Executed by: HL LLC and IMH Secured Loan Fund, LLC

Recorded April 30, 2008

Book 4592 of Official Records

Page 699

An assignment of the beneficial interest under said deed of
trust which names:

Assignee: IMH Special Asset NT 233, LLC, an Arizona limited
liability company

Recording Date: November 13, 2009

 

    	 

    	 

     

Recorded in Book: 4706 of Official Records

Page: 680

A partial assignment of the beneficial interest under said trust
deed

From: IMH Special Asset NT 233, LLC, an Arizona limited liability
company

Assignee: First Credit Bank, a California banking corporation

Recording Date: January 21, 2011

Recorded in Book: 4790 of Official Records

Page: 182

As to: Lots 1, 3 through 8, inclusive, 15, 16, and 20 through
38, inclusive

A collateral assignment of the beneficial interest, which names

Assignee: NWRA Ventures I, LLC, a Delaware limited liability
company

Recording Date: June 15, 2011

Recorded in Book: 4817 of Official Records

Page: 448

A partial assignment of the beneficial interest under said trust
deed

From: First Credit Bank, a California banking corporation

Assignee: IMH Special Asset NT 233, LLC, an Arizona limited
liability company

Recording Date: July 11, 2011

Recorded in Book: 4822 of Official Records

Page: 186

As to: Lots 1, 3 through 8, inclusive, 15, 16, and 20 through
38, inclusive

NOTE: Partial releases recorded January 12, 2010 in Book 4717
of Official Records, page 454

and February 12,

2010 in Book 4723 of Official Records, page 394.

 

28. A deed of trust to secure an indebtedness in the amount
shown below, Amount $20,000,000.00

Dated:______, 2013

Trustor/Grantor HL NEWCO, LLC, a Delaware limited liability
company

Trustee: Lawyers Title of Arizona, Inc

Beneficiary: NWRA VENTURES I, LLC, a Delaware limited liability
company, its successors

and/or assigns, as their respective interests may appear

Recording Date: _____, 2013

Recorded in Book:_____of Official Records

 

    	 

    	 

     

L’Auberge

SCHEDULE B

 

Permitted Encumbrances

 

PART I

 

	 	1.	Property taxes, which are a lien not yet due and payable, including any assessments collected with taxes to be levied for the year 2013.

 

	 	2.	Reservations contained In the Patent

 

	From:	The United States of America
	Recording Date: 	November 26, 1915
	Recording No:	Book 43 of Deeds, page 246 (portion in the Southwest quarter of Section 8); and
	 	 
	Recording Date: 	June 28, 1916
	Recording No:	Book 43 of Deeds, page 626 (portion in the Northwest quarter of Section 8)

 

Which among other things recites as follows:

 

Subject to any vested and
accrued water rights for mining, agricultural, manufacturing, or other purposes and rights to ditches and reservoirs used in connection
with such water rights, as may be recognized and acknowledged by the local customs, laws and decisions of the courts, and the reservation
from the lands hereby granted, a right of way thereon for ditches or canals constructed by the authority of the United States.

 

	 	3.	Water rights, claims or title to water, whether or not disclosed by the public records.

 

	 	4.	INTENTIONALLY DELETED

 

	 	5.	Easement(s) for the purpose(s) shown below and rights incidental thereto as set forth in a document:

 

	Purpose:	gas pipelines
	Recording No:	Docket 262, page 637
	(Parcels 3 and 4)	 

 

	 	6.	Easement(s) for the purpose(s) shown below and rights incidental thereto as set forth In a document:

 

	Purpose:	highway purposes and slope maintenance
	Recording No:	Docket 319, page 547
	(Parcel 2)	 

 

	 	7.	INTENTIONALLY DELETED

 

	 	8.	Easement(s) for the purpose(s) shown below and rights incidental thereto as set forth in a document:

 

	Purpose:	communication lines and appurtenant facilities
	Recording No:	Docket 945, page 417
	(Parcel 1)	 

 

    	 

    	 

     

3662329 Pages: 11 of 13 05/15/2013 03:49:28
PM

 

SCHEDULE B-Part I

(Continued)

 

	 	9.	Easement(s) for the purpose(s) shown below and rights incidental thereto as set forth in a document:

 

	Purpose:	water lines and appurtenant facilities
	Recording No:	Docket 945, page 423
	(Parcel 1)	 

 

	 	10.	Easement(s) for the purpose(s) shown below and rights incidental thereto as set forth in a document:

 

	Purpose:	gas pipelines and appurtenant facilities
	Recording No:	Docket 945, page 425
	(Parcel 1)	 

 

	 	11.	Easement(s) for the purpose(s) shown below and rights incidental thereto as set forth In a document:

 

	Purpose:	water lines and appurtenant facilities
	Recording No:	Docket 945, page 628
	(Parcel 2)	 

 

	 	12.	Easement(s) for the purpose(s) shown below and rights incidental thereto as set forth in a document:

 

	Purpose:	ingress and egress and public utilities
	Recording No:	Docket 954, page 152
	(Parcel 1)	 

 

	 	13.	Easement(s) for the purpose(s) shown below and rights Incidental thereto as set forth in a document:

 

	Purpose:	drainage for State Highway 89A
	Recording No:	Docket 1002, page 347
	(Parcel 1)	 

 

	 	14.	Easement(s) for the purpose(s) shown below and rights incidental thereto as set forth in a document:

 

	Purpose:	pipelines and appurtenant facilities
	Recording No:	Docket 1050, page 348
	(Parcel 1)	 

 

	 	15.	Easement(s) for the purpose(s) shown below and rights incidental thereto as set forth in a document:

 

	Purpose:	pipelines and appurtenant facilities
	Recording No:	Docket 1050, page 700
	(Parcel 1)	 

 

	 	16.	INTENTIONALLY DELETED

 

	 	17.	Easement(s) for the purpose(s) shown below and rights incidental thereto as set forth In a document:

 

	Purpose:	communication lines and appurtenant facilities
	Recording No:	Docket 1050, page 708
	(Parcel 1)	 

 

	 	18.	Easement(s) for the purpose(s) shown below and rights incidental thereto as set forth in a document:

 

	Purpose:	ditch
	Recording No:	Docket 1548, page 247 ;and
	Recording No:	Docket 1573, page 730
	(Parcel 1)	 

 

    	 

    	 

     

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PM

 

SCHEDULE B—Part

(Continued)

 

	 	19.	Easement(s) for the purpose(s) shown below and rights incidental thereto as set forth In a document:

 

	Purpose:	communication lines and appurtenant facilities
	Recording No:	Docket 1783, page 608
	(Parcel 1)	 

 

	 	20.	TERMS, COVENANTS AND PROVISIONS of an "Easement" recorded November 8, 2000, in Recording No. 3070720.

(Parcel 2)

 

	 	21.	TERMS, COVENANTS AND PROVISIONS of an "Easement Agreement" recorded April 25, 2002 in Recording No. 3138455 and re-recorded July 18, 2005 in Recording No. 3332653.

(Parcel 3)

 

	 	22.	INTENTIONALLY DELETED

 

	 	23.	INTENTIONALLY DELETED

 

	 	24.	INTENTIONALLY DELETED

 

	 	25.	Waiver of Rights and Remedies under A.R.S. 12-1134, recorded in Recording No. 3508822.

 

	 	26.	Waiver of Rights and Remedies under A.R.S. 12-1134, recorded In Recording No. 3508823.

 

	 	27.	Waiver of Rights and Remedies under A.R.S. 12-1134, recorded in Recording No. 3508824.

 

	 	28.	Easement(s) for the purpose(s) shown below and rights incidental thereto as set forth in a document:

 

	Purpose:	water lines
	Recording No:	3518961
	(Parcel 1 and 4)	 

 

	 	29.	Easement(s) for the purpose(s) shown below and rights Incidental thereto as set forth in a document:

 

	Purpose:	utilities
	Recording No:	3519923
	(Parcel 1)	 

 

	 	30.	Matters contained in that certain document

 

	Entitled:	Second Amended Development Agreement
	Executed by:	City of Sedona, an Arizona municipal corporation and L'Auberge Orchards, LLC, an Arizona limited liability company
	Recording Date:	March 15, 2010
	Recording No.:	3555969 and 3555971

 

	 	31.	Easement(s) for the purpose(s) shown below and rights Incidental thereto as set forth In a document:

 

	Purpose:	Use and License Agreement
	Recording Date:	January 27, 2010
	Recording No:	3551953

 

    	 

    	 

     

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PM

 

SCHEDULE B—Part I

(Continued)

 

	 	32.	Covenants, conditions and restrictions but omitting any covenants or restrictions, if any, including but not limited to those based upon race, color, religion, sex, sexual orientation, familial status, marital status, disability, handicap, national origin, ancestry, or source of Income, as set forth in applicable state or federal laws, except to the extent that said covenant or restriction is permitted by applicable law, as set forth in the document

 

	Recording No:	3555970
	Recording No:	3555972

 

	 	33.	Agreement with the City of Sedona for Waiver of Rights and Remedies under A.R.S. 12-1134:

 

	Executed by:	L'Auberge Orchards LLC
	Recording Date:	May 23, 2011
	Recording No.:	3596028

 

Said Agreement discloses a right of way for the
Owenby 

Ditch (Affects Tax Parcel 401-12-001C)

 

	 	34.	Covenants, conditions, restrictions and easements but omitting any covenants or restrictions, if any, including but not limited to those based upon race, color, religion, sex, sexual orientation, familial status, marital status, disability, handicap, national origin, ancestry, source of income, gender, gender identity, gender expression, medical condition or genetic information, as set forth in applicable state or federal laws, except to the extent that said covenant or restriction Is permitted by applicable law, as set forth in the document

 

	Recording No:	3596029

(Affects the Owenby Ditch contained within Tax
Parcel No. 401-12-001C)

 

	 	35.	INTENTIONALLY DELETED

 

	 	36.	AMBIGUITY of the description used herein resulting from the indefinite location of the Centerline of Oak Creek.

(Affects Parcel 1)

 

	 	37.	Any rights of the parties in possession of a portion of, or all of, said Land, which rights are not disclosed by the public records.

 

    	 

    	 

     

ORCHARDS INN

PERMITTED EXCEPTIONS

 

	 	I.	Property taxes, which area lien not yet due and payable, including any assessments collected with taxes to be levied for the year 2013.

 

	 	2.	Reservations contained in the Patent

 

	From:	The United States of America
	Recording Date:	June 28, 1916
	Recording No:	Book 43 of Deeds, page 626

 

Which among other things recites as follows:

 

Subject to any vested and
accrued water rights for mining, agricultural, manufacturing, or other purposes and rights to ditches and reservoirs used in connection
with such water rights, as may be recognized and acknowledged by the local customs, laws and decisions of the courts, and the reservation
from the lands hereby granted, a right ofway thereon for ditches or canals constructed by the authority of the United States.

 

	 	3.	Water rights, claims or title to water, whether or not disclosed by the public records.

 

	 	4.	INTENTIONALLY DELETED

 

	 	5.	INTENTIONALLY DELETED

 

	 	6.	Easement(s) for the purpose(s) shown below and rights incidental thereto as set forth in a document

 

	Purpose:	parking and roof water drainage
	Recording No:	Docket 309, page 167

 

	 	7.	Easement(s) for the purpose(s) shown below and rights incidental thereto as set forth in a document:

 

	Purpose:	water lines and appurtenant facilities
	Recording No:	Docket 1776, page 715

 

	 	8.	INTENTIONALLY DELETED

 

	 	9.	COVENANTS AND CONDITIONS in Special Warranty Deed (in Lieu of Condemnation) recorded December 27, 2005, in Recording No. 3361777.

 

	 	10.	Matters shown on record of survey:

 

	Recording No.:	3490268

 

	 	11.	Waiver of Rights and Remedies under A.R.S. 12-1134, recorded in Recording No. 3508822.

 

	 	12.	Waiver of Rights and Remedies under A.R.S. 12-1134, recorded in Recording No. 3508823.

 

	 	13.	Waiver of Rights and Remedies under A.R.S. 12-1134, recorded in Recording No. 3508824.

 

    	 

    	 

     

3662330 Pages: 7 of 9 05/15/2013 03:49:28
PM

 

	 	14.	Easement(s) for the purpose(s) shown below and rights incidental thereto as set forth in a document:

 

	Purpose:	designated parking spaces
	Recording No:	3519364; and
	Re-recorded	3521268

 

	 	15.	Easement(s) for the purpose(s) shown below and rights incidental thereto as set forth in a document:

 

	Purpose:	utility
	Recording No:	3609645

 

	 	16.	Any rights of the parties In possession of a portion of, or all of, said Land, which rights are not disclosed by the public records.

 

	 	17.	INTENTIONALLY DELETED

 

	 	18.	A deed of trust to secure an indebtedness in the amount shown below,

 

	Amount:	$43,435,000.00
	Dated:	May 7, 2008
	Trustor/Grantor:	L'Auberge Orchard, LLC., an Arizona limited liability company
	Trustee:	Trantmation Title Insurance Company
	Beneficiary:	IMH Secured Loan Fund, LLC
	Recording Date:	May 9, 2008
	Recording No:	3485966

 

And Amended and Restated Deed of Trust as shown
below,

 

	Trustor/Grantor: 	L'Auberge Orchard, LLC., an Arizona limited liability company
	Trustee: 	 
	Beneficiary: 	NWRA VENTURES 1, LLC, a Delaware limited liability company
	Recording Date: 	2013
	Recording No:	 	 

 

An agreement recorded September 25, 2009 at Recording
No. 3539611 which states that this instrument was subordinated to the document or interest described in the instrument

 

	Recording Date:	September 25, 2009
	Recording No:	3539609

 

An assignment of the beneficial interest under
said deed of trust which names:

 

	Assignee:	IMH Special Asset NT 232, LLC, an Arizona limited liability company
	Recording Date:	November 13, 2009
	Recording No:	3544893

 

An agreement recorded September 30, 2010 at Recording
No. 3575445 which states that this instrument was subordinated to the document or interest described in the instrument

 

	Recording Date:	September 25, 2009
	Recording No:	3539609

 

    	 

    	 

     

3662330 Pages: 8 of 9 05/15/2013 03:49:28
PM

 

An agreement recorded March 9, 2011 at Recording
No. 3589822 which states that this instrument was subordinated to the document or interest described in the instrument

 

	Recording Date:	September 25, 2009
	Recording No:	3539609

 

A collateral assignment of the beneficial interest,
which names

 

	Assignee:	NWRA Ventures 1, LLC, a Delaware limited liability company
	Recording Date:	Juno 15, 2011
	Recording No:	3597846

 

An agreement recorded March 29, 2013 at Recording
No. 3658075 which states that this instrument was subordinated to the document or interest described in the instrument

 

	Recording Date:	September 25, 2009
	Recording No:	3539609

 

An absolute assignment of the beneficial interest
under said deed of trust which names:

 

	Assignee:	NWRA Ventures I, LLC, a Delaware limited liability company
	Recording Date:	_____, 2013
	Recording No:	______

 

	 	19.	A financing statement as follows:

 

	Debtor:	L'Auberge Orchard, LLC., an Arizona limited
	Secured Party	liability company IMH Secured Loan Fund, LLC., a
	Recording Date:	Delaware limited liability company May 16, 2008
	Recording No:	3486766; and

 

A change to the above financing statement was
filed

 

	Nature of Change:	Assignment
	Recording Date:	March 24, 2010
	Recording No:	3556918

 

An agreement recorded September 25, 2009 at Recording
No. 3539611 which states that this instrument was subordinated to the document or interest described in the instrument

 

	Recording Date:	September 25, 2009
	Recording No:	3539609

 

	 	20.	A deed of trust to secure an indebtedness in the amount shown below,

 

	Amount:	$14,000,000.00
	Dated:	September 18, 2009
	Trustor/Grantor:	L'Auberge Orchard, LLC„ an Arizona limited liability company
	Trustee:	Lawyers Title Insurance Corporation, a Nebraska corporation
	Beneficiary:	First Credit Bank
	Recording Date:	September 25, 2009
	Recording No:	3539609

 

    	 

    	 

     

3662330 Pages: 9 of 9 05/15/2013 03:49:28
PM

 

An agreement to modit), the terms and
provisions of said deed of trust as therein provided

 

	Executed by:	L'Auberge Orchard, LLC., an Arizona limited liability company and First Credit Bank
	Recording Date:	September 30, 2010
	Recording No:	3575444

 

An agreement to modify the terms and provisions
of said deed of trust as therein provided

 

	Executed by:	L'Auberge Orchard, LLC., an Arizona limited liability company and First Credit Bank
	Recording Date:	March 9, 2011
	Recording No:	3589821

 

An agreement to modify the terms and provisions
of said deed of trust as therein provided

 

	Executed by:	L'Auberge Orchards, LLC, an Arizona limited liability company and First Credit Bank
	Recording Date:	March 29, 2013
	Recording No:	3658074

 

	 	21.	A deed of trust to secure an Indebtedness in the amount shown below,

 

	Amount:	$17,000,000,00
	Dated:	, 2013
	Recorded:	, 2013
	Recording No.:	 
	Truster:	ORCHARDS NEWCO, LLC, a Delaware limited liability company
	Trustee:	Lawyers Title of Arizona, Inc
	Beneficiary:	NWRA VENTURES I, LLC, a Delaware limited liability company, its successors and/or assigns, as their respective interests may appear

 

    	 

    	 

     

 

 

 

 

EXHIBIT 2(d)(ii)

 

Legal Description

 

(Orchards Annex Property Leases)

 

Parcel No. 1 (HOUSEKEEPING)

 

INTENTIONALLY OMITTED

 

Parcel No. 2 (I.T. EQUIPMENT ROOM):

 

A parcel of land situated in the Northwest quarter of Section
8, Township 17 North, Range 6 East of the Gila and Salt River Meridian in Coconino County, Arizona, being more particularly described
as follows:

 

Commencing at the West quarter corner of said Section 8, as
marked by a G.L.O. brass cap under drain cover in sidewalk, from which the Southwest corner of said Section 8, as marked by a B.L.M.
brass apped pipe, lies S01°42'03"E (Basis of Bearings for this description) a distance of 2,621.04 feet;

 

THENCE from said West quarter corner, N21°27'04"E a
distance of 342.00 feet to West corner of the Canyon Portal property that lies on the Southeasterly right-of-way line of Arizona
State Route 89A;

 

THENCE N74°53'13"E a distance of 103.87 feet to the
POINT OF BEGINNING;

 

THENCE S56°33'53"E a distance of 8.00 feet;

 

THENCE S33°26'07"W a distance of 22.14 feet;

 

THENCE N89°41'47"W a distance of 9.55 feet;

 

THENCE N33°26'07"E a distance of 27.36 feet to the
POINT OF BEGINNING.

 

Parcel No. 3 (ORCHARDS ANNEX BUILDING “A”):

 

A parcel of land situated in the Northwest quarter of Section
8, Township 17 North, Range 6 East of the Gila and Salt River Meridian in Coconino County, Arizona, being more particularly described
as follows:

 

Commencing at the West quarter corner of said Section 8, as
marked by a G.L.O. brass cap under drain cover in sidewalk, from which the Southwest corner of said Section 8, as marked by a B.L.M.
brass capped pipe, lies S01°42'03"E (Basis of Bearings for this description) a distance of 2,621.04 feet;

 

THENCE from said West quarter corner, N21°27'04"E a
distance of 342.00 feet to West corner of the Canyon Portal property that lies on the Southeasterly right-of-way line of Arizona
State Route 89A;

 

THENCE N67°01'52"E a distance of 426.86 feet to the
POINT OF BEGINNING;

 

    	 

    	 

     

THENCE S56°17'32"E a distance of 37.30 feet;

 

THENCE S33°42'28"W a distance of 14.70 feet;

 

THENCE S56°17'32"E a distance of 8.10 feet;

 

THENCE S33°42'28"W a distance of 62.40 feet;

 

THENCE N56°17'32"W a distance of 50.00 feet;

 

THENCE N33°42'28"E a distance of 62.30 feet;

 

THENCE S56°17'32"E a distance of 4.60 feet;

 

THENCE N33°42'28"E a distance of 14.80 feet to the
POINT OF BEGINNING.

 

Parcel No. 4 (ORCHARDS ANNEX BUILDING “B”):

 

A parcel of land situated in the Northwest quarter of Section
8, Township 17 North, Range 6 East of the Gila and Salt River Meridian in Coconino County, Arizona, being more particularly described
as follows:

 

Commencing at the West quarter corner of said Section 8, as
marked by a G.L.O. brass cap under drain cover in sidewalk, from which the Southwest corner of said Section 8, as marked by a B.L.M.
brass capped pipe, lies S01°42'03"E (Basis of Bearings for this description) a distance of 2,621.04 feet;

 

THENCE from said West quarter corner, N21°27'04"E a
distance of 342.00 feet to West corner of the Canyon Portal property that lies on the Southeasterly right-of-way line of Arizona
State Route 89A;

 

THENCE N77°31'12"E a distance of 296.27 feet to the
POINT OF BEGINNING;

 

THENCE N33°26'55"E a distance of 44.70 feet;

 

THENCE S56°33'05"E a distance of 12.70 feet;

 

THENCE N33°26'55"E a distance of 8.20 feet;

 

THENCE S56°33'05"E a distance of 38.10 feet;

 

THENCE S33°26'55"W a distance of 67.10 feet;

 

THENCE N56°33'05"W a distance of 38.30 feet;

 

THENCE N33°26'55"E a distance of 14.20 feet;

 

THENCE N56°33'05"W a distance of 12.50 feet to the
POINT OF BEGINNING.

 

    	 

    	 

     

Parcel No. 5 (ORCHARDS ANNEX BUILDING “C”):

 

A parcel of land situated in the Northwest quarter of Section
8, Township 17 North, Range 6 East of the Gila and Salt River Meridian in Coconino County, Arizona, being more particularly described
as follows:

 

Commencing at the West quarter corner of said Section 8, as
marked by a G.L.O. brass cap under drain cover in sidewalk, from which the Southwest corner of said Section 8, as marked by a B.L.M.
brass capped pipe, lies S01°42'03"E (Basis of Bearings for this description) a distance of 2,621.04 feet;

 

THENCE from said West quarter corner, N21°27'04"E a
distance of 342.00 feet to West corner of the Canyon Portal property that lies on the Southeasterly right-of-way line of Arizona
State Route 89A;

 

THENCE N80°02'28"E a distance of 274.61 feet to the
POINT OF BEGINNING;

 

THENCE S56°52'51"E a distance of 45.40 feet;

 

THENCE S33°07'09"W a distance of 76.10 feet;

 

THENCE N56°52'51"W a distance of 38.30 feet;

 

THENCE N33°07'09"E a distance of 5.70 feet;

 

THENCE N56°52'51"W a distance of 12.70 feet;

 

THENCE N33°07'09"E a distance of 55.70 feet;

 

THENCE S56°52'51"E a distance of 5.60 feet;

 

THENCE N33°07'09"E a distance of 14.70 feet to the
POINT OF BEGINNING.

 

Parcel No. 6 (AFFORDABLE HOUSING):

 

INTENTIONALLY OMITTED

 

Parcel No. 7 (TEMPORARY HOUSING):

 

A parcel of land situated in the Northwest quarter of Section
8, Township 17 North, Range 6 East of the Gila and Salt River Meridian in Coconino County, Arizona, being more particularly described
as follows:

 

Commencing at the West quarter corner of said Section 8, as
marked by a G.L.O. brass cap under drain cover in sidewalk, from which the Southwest corner of said Section 8, as marked by a B.L.M.
brass capped pipe, lies S01°42'03"E (Basis of Bearings for this description) a distance of 2,621.04 feet;

 

THENCE from said West quarter corner, N21°27'04"E a
distance of 342.00 feet to West corner of the Canyon Portal property that lies on the Southeasterly right-of-way line of Arizona
State Route 89A;

 

    	 

    	 

     

THENCE N59°47'28"E a distance of 330.63 feet;

 

THENCE N56°03'17"W a distance of 25.50 feet to the
POINT OF BEGINNING (Point “A” for reference hereinafter);

 

THENCE N56°03'17"W a distance of 34.10 feet;

 

THENCE N33°56'43"E a distance of 18.84 feet;

 

THENCE S86°25'02"E a distance of 1.59 feet;

 

THENCE N03°34'58"E a distance of 5.00 feet;

 

THENCE S86°25'02"E a distance of 3.50 feet;

 

THENCE N03°34'58"E a distance of 50.13 feet;

 

THENCE S86°25'02"E a distance of 5.10 feet;

 

THENCE N03°34'58"E a distance of 5.02 feet to Point
“B” for reference hereinafter;

 

THENCE S86°25'02"E a distance of 26.10 feet;

 

THENCE S03°34'58"W a distance of 33.00 feet to Point
“C” for reference hereinafter;

 

THENCE S03°34'58"W a distance of 30.49 feet;

 

THENCE S56°03'17"E a distance of 1.10 feet;

 

THENCE S33°56'43"W a distance of 34.30 feet to the
POINT OF BEGINNING.

 

EXCEPTING THEREFROM the following described two portions thereof
that are on the bottom floor of a two story building:

 

BEGINNING at Point “A” as referenced hereinbefore;

 

THENCE N56°03'17"W a distance of 24.90 feet;

 

THENCE N33°56'43"E a distance of 23.30 feet;

 

THENCE N03°34'58"E a distance of 0.80 feet;

 

THENCE S86°25'02"E a distance of 21.00 feet;

 

THENCE S03°34'58"W a distance of 0.35 feet;

 

THENCE S56°03'17"E a distance of 7.01 feet;

 

THENCE S33°56'43"W a distance of 34.30 feet to the
POINT OF BEGINNING (Point “A”).

 

    	 

    	 

     

Beginning at Point “C” as referenced hereinbefore;

 

THENCE S03°34'58"W a distance of 17.70 feet;

 

THENCE N86°25'02"W a distance of 5.10 feet;

 

THENCE N03°34'58"E a distance of 17.70 feet;

 

THENCE S86°25'02"E a distance of 5.10 feet to the POINT
OF BEGINNING (Point “C”).

 

AND FURTHER EXCEPTING THEREFROM the following described portion
thereof that is on the top floor of said two story building:

 

BEGINNING at Point “B” as referenced hereinbefore;

 

THENCE S86°25'02"E a distance of 26.10 feet;

 

THENCE S03°34'58"W a distance of 34.15 feet;

 

THENCE N86°25'02"W a distance of 26.10 feet;

 

THENCE N03°34'58"E a distance of 34.15 feet to the
POINT OF BEGINNING (Point “B”).

 

Parcel No. 8 (PARKING LEASEHOLD SITE NO. 1):

 

A parcel of land situated in the Northwest quarter of Section
8, Township 17 North, Range 6 East of the Gila and Salt River Meridian in Coconino County, Arizona, being more particularly described
as follows:

 

Commencing at the West quarter corner of said Section 8, as
marked by a G.L.O. brass cap under drain cover in sidewalk, from which the Southwest corner of said Section 8, as marked by a B.L.M.
brass capped pipe, lies S01°42'03"E (Basis of Bearings for this description) a distance of 2,621.04 feet;

 

THENCE from said West quarter corner, N21°27'04"E a
distance of 342.00 feet to West corner of the Canyon Portal property that lies on the Southeasterly right-of-way line of Arizona
State Route 89A;

 

THENCE N65°24’08”E a distance of 429.98 feet
to the POINT OF BEGINNING;

 

THENCE N32°17’00”E a distance of 27.00 feet;

 

THENCE S57°43’00”E a distance of 18.00 feet;

 

THENCE S32°17’00”W a distance of 27.00 feet;

 

THENCE N57°43’00”W a distance of 18.00 feet
to the POINT OF BEGINNING.

 

    	 

    	 

     

Parcel No. 9 (PARKING LEASEHOLD SITE NO. 2):

 

A parcel of land situated in the Northwest quarter of Section
8, Township 17 North, Range 6 East of the Gila and Salt River Meridian in Coconino County, Arizona, being more particularly described
as follows:

 

Commencing at the West quarter corner of said Section 8, as
marked by a G.L.O. brass cap under drain cover in sidewalk, from which the Southwest corner of said Section 8, as marked by a B.L.M.
brass capped pipe, lies S01°42'03"E (Basis of Bearings for this description) a distance of 2,621.04 feet;

 

THENCE from said West quarter corner, N21°27'04"E a
distance of 342.00 feet to West corner of the Canyon Portal property that lies on the Southeasterly right-of-way line of Arizona
State Route 89A;

 

THENCE N62°08’42”E a distance of 198.61 feet
to the POINT OF BEGINNING;

 

THENCE N34°11’13”E a distance of 18.00 feet;

 

THENCE S55°48’47”E a distance of 36.00 feet;

 

THENCE S34°11’13”W a distance of 18.00 feet;

 

THENCE N55°48’47”W a distance of 36.00 feet
to the POINT OF BEGINNING.

 

Parcel No. 10 (PARKING LEASEHOLD SITE NO. 3):

 

A parcel of land situated in the Northwest quarter of Section
8, Township 17 North, Range 6 East of the Gila and Salt River Meridian in Coconino County, Arizona, being more particularly described
as follows:

 

Commencing at the West quarter corner of said Section 8, as
marked by a G.L.O. brass cap under drain cover in sidewalk, from which the Southwest corner of said Section 8, as marked by a B.L.M.
brass capped pipe, lies S01°42'03"E (Basis of Bearings for this description) a distance of 2,621.04 feet;

 

THENCE from said West quarter corner, N21°27'04"E a
distance of 342.00 feet to West corner of the Canyon Portal property that lies on the Southeasterly right-of-way line of Arizona
State Route 89A;

 

THENCE N73°08’07”E a distance of 158.27 feet
to the POINT OF BEGINNING;

 

THENCE N33°52’16”E a distance of 18.00 feet;

 

THENCE S56°07’44”E a distance of 27.00 feet;

 

THENCE S33°52’16”W a distance of 18.00 feet;

 

THENCE N56°07’44”W a distance of 27.00 feet
to the POINT OF BEGINNING.

 

    	 

    	 

     

 

 

 

 

EXHIBIT
2(d)(iii)-A 

 

ASSIGNMENT
AND ASSUMPTION OF LEASE AND

CONSENT
TO ASSIGNMENT AND ASSUMPTION OF LEASE

 

(Orchards
Annex Property)

 

THIS ASSIGNMENT AND
ASSUMPTION OF LEASE (“Assignment”) is made and entered into as of this _____ day of _____, 2013 (the “Effective
Date”) by and between Orchards Annex, LLC, an Arizona limited liability company (“Assignor”), and
Orchards Newco, LLC, an Arizona limited liability company (“Assignee”), and consented to by Canyon Portal II,
LLC, an Arizona limited liability company (“Landlord”).

 

RECITALS

 

A.           Landlord
and Assignor entered into that certain Lease [dated March 13, 2009, and an Amendment to Lease dated July 1, 2011, for a 40 Unit
hotel property located at 280 N. Highway 89-A], Sedona, Arizona (the “Premises”), attached hereto as Exhibit
A.

 

B.           Assignor
desires to assign its rights and delegate its obligations as “Tenant” under the Lease to Assignee, and Assignee desires
to accept and assume such rights and obligations.

 

C.           Landlord
is willing to consent to such assignment, delegation, and assumption of Assignor’s rights and obligations under the Lease.

 

D.           The
parties have agreed to execute this Assignment in order to effect such assignment, delegation and assumption on the terms and conditions
set forth herein.

 

AGREEMENT

 

NOW, THEREFORE, for
good and valuable consideration, the receipt and sufficiency of which is acknowledged, the parties hereby agree as follows:

 

	 	1.	REPRESENTATION AND WARRANTY OF ASSIGNOR

 

Assignor hereby represents
and warrants to Assignee that (a) attached hereto as Exhibit A is a true and complete copy of the Lease, including the Amendment
to Lease, (b) neither Landlord nor Assignor are in default of their obligations under the Lease, and (c) no event has occurred
which would constitute a default under the Lease.

 

	 	2.	ASSIGNMENT OF LEASE

 

For good and valuable
consideration, receipt of which is hereby acknowledged, Assignor hereby (a) transfers and assigns to Assignee the entire right,
title and interest of Assignor in and to the Lease, and (b) delegates and transfers to Assignee all of Assignor’s obligations
under the Lease.

 

    	 

    	 

     

	 	3.	ACCEPTANCE AND ASSUMPTION

 

Assignee hereby (a)
accepts the assignment of all such rights and assumes all such duties and obligations as the “Tenant” under the Lease
arising with respect to the period from and after the Effective Date, and (b) agrees to perform the duties and obligations of the
Assignor arising under the Lease with respect to the period from and after the Effective Date of this Assignment to the same extent
as if Assignee were the original “Tenant” named in such Lease.

 

	 	4.	MISCELLANEOUS

 

4.1           Further
Assurances. Each party agrees to take such additional steps and to execute such additional documents as may be necessary to
effectuate the purposes of this Assignment.

 

4.2           Attorneys’
Fees. If any action is commenced to construe or enforce the terms and conditions of this Assignment or the rights created hereunder,
the party prevailing in that action shall be entitled to recover its reasonable attorneys’ fees as well as the costs and
expenses of enforcing or appealing any judgment entered therein.

 

4.3           Governing
Law, Jurisdiction, and Venue. This Agreement shall be governed by and construed in accordance with the laws of the State of
Arizona, without regard to the application of its conflict-of-law principles. Each party hereby consents to the jurisdiction of
the courts of [Maricopa] County, Arizona for the purposes of all actions commenced under or in connection with this Agreement.

 

4.4           Binding
Effect. This Agreement shall be binding upon and shall inure to the benefit of each of the parties hereto, as well as their
respective heirs, successors, and assigns.

 

4.5           Authority.
The signature of the person executing this Assignment evidences the full power and authority of such person to enter into this
Assignment on behalf of the party he or she represents and the terms applicable to such party hereunder shall be valid and binding
upon the party he or she represents.

 

4.6           Entire
Agreement. This Assignment constitutes the entire and final agreement between the parties with respect to the subject matter
hereof and may not be changed, terminated, or otherwise varied, except by a writing duly executed by the parties.

 

4.7           Captions.
All captions in this Assignment are included herein for convenience of reference .only and shall not constitute part of this Assignment
for any other purposes

 

4.8           Counterparts.
This Assignment may be executed in any number of counterparts, each of which when so executed shall be deemed to be an original
and all of which taken together shall constitute one and the same agreement.

 

IN WITNESS WHEREOF,
the parties hereto have executed this Assignment, effective as of the date set forth above.

 

    	2

    	 

     

	ASSIGNOR:	ASSIGNEE:
	 	 
	ORCHARDS ANNEX, LLC, an Arizona limited liability company	ORCHARDS NEWCO, LLC, an Arizona 

limited liability company
	 	 
	 	By:	IMH Financial Corporation,
	 	 	a Delaware Corporation, Sole Member
	 	 	 
	By:	 	 	 	By:	 
	 	Albert B. Spector , Jr.	 	 	Name:	 
	Its:	 	 	 	Its:	 

 

    	3

    	 

     

CONSENT
TO ASSIGNMENT OF LEASE

 

1.        Consent
to Assignment. Landlord consents to the foregoing Assignment and agrees to recognize the Assignee as the “Tenant”
under the Lease from and after the Effective Date specified in the Assignment.

 

2.        Lease
and Defaults. Landlord represents to Assignee that:

 

(a) The Lease,
including amendments, attached hereto as Exhibit A, represents a true and complete copy of the Lease and Amendment to Lease
between Landlord and Assignor with respect to the Premises, and remains in full force and effect;

 

(b) The signature
of the person executing this Assignment evidences the full power and authority of such person to enter into this Assignment on
behalf of Landlord;

 

(c) No third party
consent to the terms of this Assignment is required before the terms of this Assignment are binding upon Landlord; and

 

(d) Neither Landlord
nor Assignor is in default of their obligations under the Lease.

 

	LANDLORD:
	 
	CANYON PORTAL II, L.L.C., an Arizona limited liability company
	 
	 	By:	 
	 	 	Albert B. Spector, Jr.
	 	Its:	 

 

    	4

    	 

     

 

 

 

 

EXHIBIT
2(d)(iii)-B 

 

ASSIGNMENT
AND ASSUMPTION OF LEASE AND

CONSENT
TO ASSIGNMENT AND ASSUMPTION OF LEASE

 

(Orchards
Inn Parking Lease)

 

THIS ASSIGNMENT AND
ASSUMPTION OF LEASE (“Assignment”) is made and entered into as of this _____ day of _______________, 2013 (the
“Effective Date”) by and between Orchards Inn & Restaurant,
LLC, an Arizona limited liability company (“Assignor”), and Orchards
Newco, LLC, a Delaware limited liability company (“Assignee”), and consented to by Canyon
Portal II, L.L.C., an Arizona limited liability company (“Landlord”).

 

RECITALS

 

A.           Landlord
and Assignor entered into that certain Lease for Parking Spaces dated January 1, 2012, and Amendment to Lease dated May 1, 2012
(together, the “Lease”), for ten (10) parking spaces located at 270-300 N. Highway 89A in Sedona, Arizona (the
“Premises”), attached hereto as Exhibit A.

 

B.           Assignor
desires to assign its rights and delegate its obligations as “Tenant” under the Lease to Assignee, and Assignee desires
to accept and assume such rights and obligations.

 

C.           Landlord
is willing to consent to such assignment, delegation, and assumption of Assignor’s rights and obligations under the Lease.

 

D.           The
parties have agreed to execute this Assignment in order to effect such assignment, delegation and assumption on the terms and conditions
set forth herein.

 

AGREEMENT

 

NOW, THEREFORE, for
good and valuable consideration, the receipt and sufficiency of which is acknowledged, the parties hereby agree as follows:

 

1.           REPRESENTATION
AND WARRANTY OF ASSIGNOR

 

Assignor hereby represents
and warrants to Assignee that (a) attached hereto as Exhibit A is a true and complete copy of the Lease, including the Amendment
to Lease, (b) neither Landlord nor Assignor are in default of their obligations under the Lease, and (c) no event has occurred
which would constitute a default under the Lease.

 

2.           ASSIGNMENT
OF LEASE

 

For good and valuable
consideration, receipt of which is hereby acknowledged, Assignor hereby (a) transfers and assigns to Assignee the entire right,
title and interest of Assignor in and to the Lease, and (b) delegates and transfers to Assignee all of Assignor’s obligations
under the Lease.

 

    	 

    	 

     

3.           ACCEPTANCE
AND ASSUMPTION

 

Assignee hereby (a)
accepts the assignment of all such rights and assumes all such duties and obligations as the “Tenant” under the Lease
arising with respect to the period from and after the Effective Date, and (b) agrees to perform the duties and obligations of the
Assignor arising under the Lease with respect to the period from and after the Effective Date of this Assignment to the same extent
as if Assignee were the original “Tenant” named in such Lease.

 

4.           MISCELLANEOUS

 

4.1           Further
Assurances. Each party agrees to take such additional steps and to execute such additional documents as may be necessary to
effectuate the purposes of this Assignment.

 

4.2           Attorneys’
Fees. If any action is commenced to construe or enforce the terms and conditions of this Assignment or the rights created hereunder,
the party prevailing in that action shall be entitled to recover its reasonable attorneys’ fees as well as the costs and
expenses of enforcing or appealing any judgment entered therein.

 

4.3           Governing
Law, Jurisdiction, and Venue. This Agreement shall be governed by and construed in accordance with the laws of the State of
Arizona, without regard to the application of its conflict-of-law principles. Each party hereby consents to the jurisdiction of
the courts of Maricopa County, Arizona for the purposes of all actions commenced under or in connection with this Agreement.

 

4.4           Binding
Effect. This Agreement shall be binding upon and shall inure to the benefit of each of the parties hereto, as well as their
respective heirs, successors, and assigns.

 

4.5           Authority.
The signature of the person executing this Assignment evidences the full power and authority of such person to enter into this
Assignment on behalf of the party he or she represents and the terms applicable to such party hereunder shall be valid and binding
upon the party he or she represents.

 

4.6           Entire
Agreement. This Assignment constitutes the entire and final agreement between the parties with respect to the subject matter
hereof and may not be changed, terminated, or otherwise varied, except by a writing duly executed by the parties.

 

4.7           Captions.
All captions in this Assignment are included herein for convenience of reference .only and shall not constitute part of this Assignment
for any other purposes

 

4.8           Counterparts.
This Assignment may be executed in any number of counterparts, each of which when so executed shall be deemed to be an original
and all of which taken together shall constitute one and the same agreement.

 

IN WITNESS WHEREOF,
the parties hereto have executed this Assignment, effective as of the date set forth above.

 

[SIGNATURES ON FOLLOWING
PAGES]

 

    	2

    	 

    	ASSIGNOR:	ASSIGNEE:
	 	 
	ORCHARDS INN & RESTAURANT, LLC, an Arizona limited liability company	ORCHARDS NEWCO, LLC, a Delaware limited liability company
	 	 
	By:	L’Auberge Orchards, LLC,	By:	IMH Financial Corporation,
		an Arizona limited liability company, I	 	a Delaware Corporation
	Its:	Sole Member	Its:	Sole Member
	 	 
	 	By:	 	 	By:	 
	 	Name:	 	 	Name:	 
	 	Its:	 	 	Its:	 

 

Assignment and Assumption of Lease (Orchards
Inn Parking)

 

    	 

    	 

     

CONSENT
TO ASSIGNMENT OF LEASE

 

1.       Consent
to Assignment. Landlord consents to the foregoing Assignment and agrees to recognize the Assignee as the “Tenant”
under the Lease from and after the Effective Date specified in the Assignment.

 

2.       Lease
and Defaults. Landlord represents to Assignee that:

 

(a) The Lease, including
amendments, attached hereto as Exhibit A, represents a true and complete copy of the Lease and Amendment to Lease between
Landlord and Assignor with respect to the Premises, and remains in full force and effect;

 

(b) The signature
of the person executing this Assignment evidences the full power and authority of such person to enter into this Assignment on
behalf of Landlord;

 

(c) No third party
consent to the terms of this Assignment is required before the terms of this Assignment are binding upon Landlord; and

 

(d) Neither Landlord
nor Assignor is in default of their obligations under the Lease.

 

	LANDLORD:
	 
	CANYON PORTAL II, L.L.C., an Arizona limited liability company
	 
	 	By:	 
	 	 	Albert B. Spector, Jr.
	 	Its:	 

 

Assignment and Assumption of Lease (Orchards
Inn Parking)

  

    	2

    	 

     

EXHIBIT A

 

ORCHARDS INN PARKING LEASE

 

Assignment and Assumption of Lease (Orchards
Inn Parking)

  

    	 

    	 

     

 

 

 

 

 

 

 

EXHIBIT
2(d)(iii)-C 

 

ASSIGNMENT
AND ASSUMPTION OF LEASE AND

CONSENT
TO ASSIGNMENT AND ASSUMPTION OF LEASE

 

(Sinagua
Plaza Storage Lease)

 

THIS ASSIGNMENT AND
ASSUMPTION OF LEASE (“Assignment”) is made and entered into as of this _____ day of _____, 2013 (the “Effective
Date”) by and between L’Auberge Orchards, LLC, an Arizona limited
liability company (“Assignor”), and L’Auberge Newco, LLC,
a Delaware limited liability company (“Assignee”), and consented to by SINAGUA PLAZA II, L.L.C., an Arizona
limited liability company (“Landlord”).

 

RECITALS

 

A.           Landlord
and Assignor entered into that certain Lease for Storage Space dated January 1, 2012, and Amendment to Lease dated May 1, 2012
(together, the “Lease”), for storage space in the basement of a shopping center located at 320 N. Highway 89A,
Sedona, Arizona (the “Premises”), attached hereto as Exhibit A.

 

B.           Assignor
desires to assign its rights and delegate its obligations as “Tenant” under the Lease to Assignee, and Assignee desires
to accept and assume such rights and obligations.

 

C.           Landlord
is willing to consent to such assignment, delegation, and assumption of Assignor’s rights and obligations under the Lease.

 

D.           The
parties have agreed to execute this Assignment in order to effect such assignment, delegation and assumption on the terms and conditions
set forth herein.

 

AGREEMENT

 

NOW, THEREFORE, for
good and valuable consideration, the receipt and sufficiency of which is acknowledged, the parties hereby agree as follows:

 

	 	1.	REPRESENTATION AND WARRANTY OF ASSIGNOR

 

Assignor hereby represents
and warrants to Assignee that (a) attached hereto as Exhibit A is a true and complete copy of the Lease, including the Amendment
to Lease, (b) neither Landlord nor Assignor are in default of their obligations under the Lease, and (c) no event has occurred
which would constitute a default under the Lease.

 

	 	2.	ASSIGNMENT OF LEASE

 

For good and valuable
consideration, receipt of which is hereby acknowledged, Assignor hereby (a) transfers and assigns to Assignee the entire right,
title and interest of Assignor in and to the Lease, and (b) delegates and transfers to Assignee all of Assignor’s obligations
under the Lease.

 

    	 

    	 

     

	 	3.	ACCEPTANCE AND ASSUMPTION

 

Assignee hereby (a)
accepts the assignment of all such rights and assumes all such duties and obligations as the “Tenant” under the Lease
arising with respect to the period from and after the Effective Date, and (b) agrees to perform the duties and obligations of the
Assignor arising under the Lease with respect to the period from and after the Effective Date of this Assignment to the same extent
as if Assignee were the original “Tenant” named in such Lease.

 

	 	4.	MISCELLANEOUS

 

4.1           Further
Assurances. Each party agrees to take such additional steps and to execute such additional documents as may be necessary to
effectuate the purposes of this Assignment.

 

4.2           Attorneys’
Fees. If any action is commenced to construe or enforce the terms and conditions of this Assignment or the rights created hereunder,
the party prevailing in that action shall be entitled to recover its reasonable attorneys’ fees as well as the costs and
expenses of enforcing or appealing any judgment entered therein.

 

4.3           Governing
Law, Jurisdiction, and Venue. This Agreement shall be governed by and construed in accordance with the laws of the State of
Arizona, without regard to the application of its conflict-of-law principles. Each party hereby consents to the jurisdiction of
the courts of Maricopa County, Arizona for the purposes of all actions commenced under or in connection with this Agreement.

 

4.4           Binding
Effect. This Agreement shall be binding upon and shall inure to the benefit of each of the parties hereto, as well as their
respective heirs, successors, and assigns.

 

4.5           Authority.
The signature of the person executing this Assignment evidences the full power and authority of such person to enter into this
Assignment on behalf of the party he or she represents and the terms applicable to such party hereunder shall be valid and binding
upon the party he or she represents.

 

4.6           Entire
Agreement. This Assignment constitutes the entire and final agreement between the parties with respect to the subject matter
hereof and may not be changed, terminated, or otherwise varied, except by a writing duly executed by the parties.

 

4.7           Captions.
All captions in this Assignment are included herein for convenience of reference .only and shall not constitute part of this Assignment
for any other purposes

 

4.8           Counterparts.
This Assignment may be executed in any number of counterparts, each of which when so executed shall be deemed to be an original
and all of which taken together shall constitute one and the same agreement.

 

IN WITNESS WHEREOF, the
parties hereto have executed this Assignment, effective as of the date set forth above.

 

[SIGNATURES ON FOLLOWING
PAGES]

 

    	2

    	 

     

	ASSIGNOR:	ASSIGNEE:
	 	 
	L’AUBERGE ORCHARDS, LLC, an Arizona limited liability company	L’AUBERGE NEWCO, LLC, a Delaware limited liability company
	 	 
	 	By:	IMH Financial Corporation, a Delaware Corporation
	 	Its: 	Sole Member
	 	 
	By:	 	 	 	By:	 
	 	Albert B. Spector, Jr.	 	 	Name:	 
	Its:	 	 	 	Its:	 

 

Assignment and Assumption of Lease (Sinagua
Storage)

 

    	 

    	 

     

CONSENT
TO ASSIGNMENT OF LEASE

 

1.        Consent
to Assignment. Landlord consents to the foregoing Assignment and agrees to recognize the Assignee as the “Tenant”
under the Lease from and after the Effective Date specified in the Assignment.

 

2.        Lease
and Defaults. Landlord represents to Assignee that:

 

(a) The Lease, including
amendments, attached hereto as Exhibit A, represents a true and complete copy of the Lease and Amendment to Lease between
Landlord and Assignor with respect to the Premises, and remains in full force and effect;

 

(b) The signature
of the person executing this Assignment evidences the full power and authority of such person to enter into this Assignment on
behalf of Landlord;

 

(c) No third party
consent to the terms of this Assignment is required before the terms of this Assignment are binding upon Landlord; and

 

(d) Neither Landlord
nor Assignor is in default of their obligations under the Lease.

 

	LANDLORD:
	 
	SINAGUA PLAZA II, L.L.C., an Arizona limited liability company
	 
	 	By:	 
	 	 	Albert B. Spector, Jr.
	 	Its:	 

 

Assignment and Assumption of Lease (Sinagua
Storage) 

 

    	2

    	 

     

EXHIBIT
A

 

SINAGUA
STORAGE LEASE

 

Assignment and Assumption
of Lease (Sinagua Storage)

 

    	 

    	 

     

 

 

 

 

EXHIBIT
2(d)(iii)-D 

 

ASSIGNMENT
AND ASSUMPTION OF LEASE AND

CONSENT
TO ASSIGNMENT AND ASSUMPTION OF LEASE

 

(Sinagua
Plaza Parking Lease)

 

THIS ASSIGNMENT AND
ASSUMPTION OF LEASE (“Assignment”) is made and entered into as of this _____ day of _____, 2013 (the “Effective
Date”) by and between L’Auberge Orchards , LLC, an Arizona limited
liability company (“Assignor”), and L’Auberge Newco, LLC,
a Delaware limited liability company (“Assignee”), and consented to by Sinagua
Plaza II, L.L.C., an Arizona limited liability company (“Landlord”).

 

RECITALS

 

A.           Landlord
and Assignor entered into that certain Lease for Parking Spaces dated January 1, 2012, and that certain Amendment to Lease dated
May 1, 2012 (together, the “Lease”), for seventeen (17) parking spaces located in the parking structure adjacent
to 320 N. Highway 89A, Sedona, Arizona (the “Premises”), attached hereto as Exhibit A.

 

B.           Assignor
desires to assign its rights and delegate its obligations as “Tenant” under the Lease to Assignee, and Assignee desires
to accept and assume such rights and obligations.

 

C.           Landlord
is willing to consent to such assignment, delegation, and assumption of Assignor’s rights and obligations under the Lease.

 

D.           The
parties have agreed to execute this Assignment in order to effect such assignment, delegation and assumption on the terms and conditions
set forth herein.

 

AGREEMENT

 

NOW, THEREFORE, for
good and valuable consideration, the receipt and sufficiency of which is acknowledged, the parties hereby agree as follows:

 

	 	1.	REPRESENTATION AND WARRANTY OF ASSIGNOR

 

Assignor hereby represents
and warrants to Assignee that (a) attached hereto as Exhibit A is a true and complete copy of the Lease, including the Amendment
to Lease, (b) neither Landlord nor Assignor are in default of their obligations under the Lease, and (c) no event has occurred
which would constitute a default under the Lease.

 

	 	2.	ASSIGNMENT OF LEASE

 

For good and valuable
consideration, receipt of which is hereby acknowledged, Assignor hereby (a) transfers and assigns to Assignee the entire right,
title and interest of Assignor in and to the Lease, and (b) delegates and transfers to Assignee all of Assignor’s obligations
under the Lease.

 

    	 

    	 

     

	 	3.	ACCEPTANCE AND ASSUMPTION

 

Assignee hereby (a)
accepts the assignment of all such rights and assumes all such duties and obligations as the “Tenant” under the Lease
arising with respect to the period from and after the Effective Date, and (b) agrees to perform the duties and obligations of the
Assignor arising under the Lease with respect to the period from and after the Effective Date of this Assignment to the same extent
as if Assignee were the original “Tenant” named in such Lease.

 

	 	4.	MISCELLANEOUS

 

4.1           Further
Assurances. Each party agrees to take such additional steps and to execute such additional documents as may be necessary to
effectuate the purposes of this Assignment.

 

4.2           Attorneys’
Fees. If any action is commenced to construe or enforce the terms and conditions of this Assignment or the rights created hereunder,
the party prevailing in that action shall be entitled to recover its reasonable attorneys’ fees as well as the costs and
expenses of enforcing or appealing any judgment entered therein.

 

4.3           Governing
Law, Jurisdiction, and Venue. This Agreement shall be governed by and construed in accordance with the laws of the State of
Arizona, without regard to the application of its conflict-of-law principles. Each party hereby consents to the jurisdiction of
the courts of Maricopa County, Arizona for the purposes of all actions commenced under or in connection with this Agreement.

 

4.4           Binding
Effect. This Agreement shall be binding upon and shall inure to the benefit of each of the parties hereto, as well as their
respective heirs, successors, and assigns.

 

4.5           Authority.
The signature of the person executing this Assignment evidences the full power and authority of such person to enter into this
Assignment on behalf of the party he or she represents and the terms applicable to such party hereunder shall be valid and binding
upon the party he or she represents.

 

4.6           Entire
Agreement. This Assignment constitutes the entire and final agreement between the parties with respect to the subject matter
hereof and may not be changed, terminated, or otherwise varied, except by a writing duly executed by the parties.

 

4.7           Captions.
All captions in this Assignment are included herein for convenience of reference .only and shall not constitute part of this Assignment
for any other purposes

 

4.8           Counterparts.
This Assignment may be executed in any number of counterparts, each of which when so executed shall be deemed to be an original
and all of which taken together shall constitute one and the same agreement.

 

IN WITNESS WHEREOF,
the parties hereto have executed this Assignment, effective as of the date set forth above. 

 

    	2

    	 

     

	ASSIGNOR:	ASSIGNEE:
	 	 
	L’AUBERGE ORCHARDS, LLC, an Arizona limited liability company	L’AUBERGE NEWCO, LLC, a Delaware limited liability company
	 	 
	 	By:	IMH Financial Corporation, a Delaware Corporation, Sole Member
	 	 
	By:	 	 	 	By:	 
	 	Albert B. Spector, Jr.	 	 	Name:	 
	Its:	 	 	 	Its:	 

 

Assignment and Assumption of Lease (Sinagua
Parking)

 

    	 

    	 

     

CONSENT
TO ASSIGNMENT OF LEASE

 

1.        Consent
to Assignment. Landlord consents to the foregoing Assignment and agrees to recognize the Assignee as the “Tenant”
under the Lease from and after the Effective Date specified in the Assignment.

 

2.        Lease
and Defaults. Landlord represents to Assignee that:

 

(a) The Lease,
including amendments, attached hereto as Exhibit A, represents a true and complete copy of the Lease and Amendment to Lease
between Landlord and Assignor with respect to the Premises, and remains in full force and effect;

 

(b) The signature
of the person executing this Assignment evidences the full power and authority of such person to enter into this Assignment on
behalf of Landlord;

 

(c) No third party
consent to the terms of this Assignment is required before the terms of this Assignment are binding upon Landlord; and

 

(d) Neither Landlord
nor Assignor is in default of their obligations under the Lease.

 

	LANDLORD:
	 
	SINAGUA PLAZA II, L.L.C., an Arizona limited liability company
	 
	 	By:	 
	 	 	Albert B. Spector, Jr.
	 	Its:	 

 

Assignment and Assumption of Lease (Sinagua
Parking) 

 

    	2

    	 

     

EXHIBIT
A

 

SINAGUA
PARKING LEASE

 

Assignment and Assumption of Lease (Sinagua
Parking)

 

    	 

    	 

     

 

 

 

EXHIBIT
2(d)(iii)-E 

 

ASSIGNMENT
AND ASSUMPTION OF LEASE AND

CONSENT
TO ASSIGNMENT AND ASSUMPTION OF LEASE

 

(Affordable
Housing Lease) 

  

INTENTIONALLY OMITTED

 

 

    	 

    	 

     

 

 

 

EXHIBIT
2(d)(iii)-F 

 

ASSIGNMENT
AND ASSUMPTION OF LEASE AND

CONSENT
TO ASSIGNMENT AND ASSUMPTION OF LEASE

 

(Temporary
Housing Lease)

 

THIS ASSIGNMENT AND
ASSUMPTION OF LEASE (“Assignment”) is made and entered into as of this _____ day of _____, 2013 (the “Effective
Date”) by and between L’Auberge Orchards, LLC, an Arizona limited
liability company (“Assignor”), and L’Auberge Newco, LLC,
a Delaware limited liability company (“Assignee”), and consented to by Canyon
Portal II, L.L.C., an Arizona limited liability company (“Landlord”).

 

RECITALS

 

A.           Landlord
and Assignor entered into that certain Lease dated April 1, 2012, for Housing Units 418, 419, 436, 437 & 438 at 280 N. Highway
89A, Sedona, Arizona (the “Premises”), attached hereto as Exhibit A.

 

B.           Assignor
desires to assign its rights and delegate its obligations as “Tenant” under the Lease to Assignee, and Assignee desires
to accept and assume such rights and obligations.

 

C.           Landlord
is willing to consent to such assignment, delegation, and assumption of Assignor’s rights and obligations under the Lease.

 

D.           The
parties have agreed to execute this Assignment in order to effect such assignment, delegation and assumption on the terms and conditions
set forth herein.

 

AGREEMENT

 

NOW, THEREFORE, for
good and valuable consideration, the receipt and sufficiency of which is acknowledged, the parties hereby agree as follows:

 

	 	1.	REPRESENTATION AND WARRANTY OF ASSIGNOR

 

Assignor hereby represents
and warrants to Assignee that (a) attached hereto as Exhibit A is a true and complete copy of the Lease, including the Amendment
to Lease, (b) neither Landlord nor Assignor are in default of their obligations under the Lease, and (c) no event has occurred
which would constitute a default under the Lease.

 

	 	2.	ASSIGNMENT OF LEASE

 

For good and valuable
consideration, receipt of which is hereby acknowledged, Assignor hereby (a) transfers and assigns to Assignee the entire right,
title and interest of Assignor in and to the Lease, and (b) delegates and transfers to Assignee all of Assignor’s obligations
under the Lease.

 

    	 

    	 

     

	 	3.	ACCEPTANCE AND ASSUMPTION

 

Assignee hereby (a)
accepts the assignment of all such rights and assumes all such duties and obligations as the “Tenant” under the Lease
arising with respect to the period from and after the Effective Date, and (b) agrees to perform the duties and obligations of the
Assignor arising under the Lease with respect to the period from and after the Effective Date of this Assignment to the same extent
as if Assignee were the original “Tenant” named in such Lease.

 

	 	4.	MISCELLANEOUS

 

4.1           Further
Assurances. Each party agrees to take such additional steps and to execute such additional documents as may be necessary to
effectuate the purposes of this Assignment.

 

4.2           Attorneys’
Fees. If any action is commenced to construe or enforce the terms and conditions of this Assignment or the rights created hereunder,
the party prevailing in that action shall be entitled to recover its reasonable attorneys’ fees as well as the costs and
expenses of enforcing or appealing any judgment entered therein.

 

4.3           Governing
Law, Jurisdiction, and Venue. This Agreement shall be governed by and construed in accordance with the laws of the State of
Arizona, without regard to the application of its conflict-of-law principles. Each party hereby consents to the jurisdiction of
the courts of Maricopa County, Arizona for the purposes of all actions commenced under or in connection with this Agreement.

 

4.4           Binding
Effect. This Agreement shall be binding upon and shall inure to the benefit of each of the parties hereto, as well as their
respective heirs, successors, and assigns.

 

4.5           Authority.
The signature of the person executing this Assignment evidences the full power and authority of such person to enter into this
Assignment on behalf of the party he or she represents and the terms applicable to such party hereunder shall be valid and binding
upon the party he or she represents.

 

4.6           Entire
Agreement. This Assignment constitutes the entire and final agreement between the parties with respect to the subject matter
hereof and may not be changed, terminated, or otherwise varied, except by a writing duly executed by the parties.

 

4.7           Captions.
All captions in this Assignment are included herein for convenience of reference .only and shall not constitute part of this Assignment
for any other purposes

 

4.8           Counterparts.
This Assignment may be executed in any number of counterparts, each of which when so executed shall be deemed to be an original
and all of which taken together shall constitute one and the same agreement.

 

IN WITNESS WHEREOF,
the parties hereto have executed this Assignment, effective as of the date set forth above.

 

[SIGNATURES ON FOLLOWING
PAGES]

 

    	2

    	 

     

 

	ASSIGNOR:	 	ASSIGNEE:
	 	 	 
	L’AUBERGE ORCHARDS, LLC, an Arizona limited liability company	 	L’AUBERGE NEWCO, LLC, a Delaware limited liability company
	 	 	 
	By:	 	 	By:	IMH Financial Corporation,
	 	Albert B. Spector, Jr.	 	 	a Delaware Corporation
	Its:	 	 	Its:	Sole Member
	 	 	 	 	 
	 	 	 	 	By:	 
	 	 	 	 	Name:	 
	 	 	 	 	Its:	 

 

  

Assignment and Assumption of Lease (Temporary
Housing)

 

    	 

    	 

     

CONSENT
TO ASSIGNMENT OF LEASE

 

1.        Consent
to Assignment. Landlord consents to the foregoing Assignment and agrees to recognize the Assignee as the “Tenant”
under the Lease from and after the Effective Date specified in the Assignment.

 

2.        Lease
and Defaults. Landlord represents to Assignee that:

 

(a) The Lease,
including amendments, attached hereto as Exhibit A, represents a true and complete copy of the Lease and Amendment to Lease
between Landlord and Assignor with respect to the Premises, and remains in full force and effect;

 

(b) The signature
of the person executing this Assignment evidences the full power and authority of such person to enter into this Assignment on
behalf of Landlord;

 

(c) No third party
consent to the terms of this Assignment is required before the terms of this Assignment are binding upon Landlord; and

 

(d) Neither Landlord
nor Assignor is in default of their obligations under the Lease.

 

	LANDLORD:
	 
	CANYON PORTAL II, L.L.C., an Arizona limited liability company
	 
	 	By:	 
	 	 	Albert B. Spector, Jr.
	 	Its:	 

 

Assignment and Assumption of Lease (Temporary
Housing) 

 

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EXHIBIT A

 

TEMPORARY HOUSING LEASE

 

Assignment and Assumption of Lease (Temporary
Housing)

 

    	 

    	 

     

 

EXHIBIT 2(d)(iii)-G

 

 

ASSIGNMENT
AND ASSUMPTION OF LEASE AND

CONSENT
TO ASSIGNMENT AND ASSUMPTION OF LEASE

 

(Telephone
Room Lease)

 

THIS ASSIGNMENT AND
ASSUMPTION OF LEASE (“Assignment”) is made and entered into as of this _____ day of _____, 2013 (the “Effective
Date”) by and between L’Auberge Orchards LLC, an Arizona limited
liability company (“Assignor”), and orchards Newco,
LLC, a Delaware limited liability company (“Assignee”), and consented to by Canyon
Portal II, L.L.C., an Arizona limited liability company (“Landlord”).

 

RECITALS

 

A.           Landlord
and Assignor entered into that certain Lease commencing April 1, 2010 Amendment to Lease dated February 1, 2011 and Second Amendment
to Lease dated ___________________, 2013 (collectively, the “Lease”), for 174 square feet for housing of telecommunications
equipment in Sedona, Arizona (the “Premises”), attached hereto as Exhibit A.

 

B.           Assignor
desires to assign its rights and delegate its obligations as “Tenant” under the Lease to Assignee, and Assignee desires
to accept and assume such rights and obligations.

 

C.           Landlord
is willing to consent to such assignment, delegation, and assumption of Assignor’s rights and obligations under the Lease.

 

D.           The
parties have agreed to execute this Assignment in order to effect such assignment, delegation and assumption on the terms and conditions
set forth herein.

 

AGREEMENT

 

NOW, THEREFORE, for
good and valuable consideration, the receipt and sufficiency of which is acknowledged, the parties hereby agree as follows:

 

	 	1.	REPRESENTATION AND WARRANTY OF ASSIGNOR

 

Assignor hereby represents
and warrants to Assignee that (a) attached hereto as Exhibit A is a true and complete copy of the Lease, including the Amendment
to Lease, (b) neither Landlord nor Assignor are in default of their obligations under the Lease, and (c) no event has occurred
which would constitute a default under the Lease.

 

	 	2.	ASSIGNMENT OF LEASE

 

For good and valuable
consideration, receipt of which is hereby acknowledged, Assignor hereby (a) transfers and assigns to Assignee the entire right,
title and interest of Assignor in and to the Lease, and (b) delegates and transfers to Assignee all of Assignor’s obligations
under the Lease.

 

    	 

    	 

     

	 	3.	ACCEPTANCE AND ASSUMPTION

 

Assignee hereby (a)
accepts the assignment of all such rights and assumes all such duties and obligations as the “Tenant” under the Lease
arising with respect to the period from and after the Effective Date, and (b) agrees to perform the duties and obligations of the
Assignor arising under the Lease with respect to the period from and after the Effective Date of this Assignment to the same extent
as if Assignee were the original “Tenant” named in such Lease.

 

	 	4.	MISCELLANEOUS

 

4.1           Further
Assurances. Each party agrees to take such additional steps and to execute such additional documents as may be necessary to
effectuate the purposes of this Assignment.

 

4.2           Attorneys’
Fees. If any action is commenced to construe or enforce the terms and conditions of this Assignment or the rights created hereunder,
the party prevailing in that action shall be entitled to recover its reasonable attorneys’ fees as well as the costs and
expenses of enforcing or appealing any judgment entered therein.

 

4.3           Governing
Law, Jurisdiction, and Venue. This Agreement shall be governed by and construed in accordance with the laws of the State of
Arizona, without regard to the application of its conflict-of-law principles. Each party hereby consents to the jurisdiction of
the courts of Maricopa County, Arizona for the purposes of all actions commenced under or in connection with this Agreement.

 

4.4           Binding
Effect. This Agreement shall be binding upon and shall inure to the benefit of each of the parties hereto, as well as their
respective heirs, successors, and assigns.

 

4.5           Authority.
The signature of the person executing this Assignment evidences the full power and authority of such person to enter into this
Assignment on behalf of the party he or she represents and the terms applicable to such party hereunder shall be valid and binding
upon the party he or she represents.

 

4.6           Entire
Agreement. This Assignment constitutes the entire and final agreement between the parties with respect to the subject matter
hereof and may not be changed, terminated, or otherwise varied, except by a writing duly executed by the parties.

 

4.7           Captions.
All captions in this Assignment are included herein for convenience of reference .only and shall not constitute part of this Assignment
for any other purposes

 

4.8           Counterparts.
This Assignment may be executed in any number of counterparts, each of which when so executed shall be deemed to be an original
and all of which taken together shall constitute one and the same agreement.

 

IN WITNESS WHEREOF,
the parties hereto have executed this Assignment, effective as of the date set forth above.

 

[SIGNATURES ON FOLLOWING
PAGES] 

 

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	ASSIGNOR:	 	ASSIGNEE:
	 	 	 
	L’AUBERGE ORCHARDS LLC, an Arizona limited liability company	 	ORCHARDS NEWCO, LLC, a Delaware limited liability company
	 	 	 
	By:	 	 	By:	IMH Financial Corporation,
	 	Albert B. Spector, Jr.	 	 	a Delaware Corporation
	Its:	 	 	Its:	Sole Member
	 	 	 	 
	 	 	 	 	By:	 
	 	 	 	 	Name:	 
	 	 	 	 	Its:	 

 

Assignment and Assumption of Lease (Telephone
Room)

 

    	 

    	 

     

CONSENT
TO ASSIGNMENT OF LEASE

 

1.        Consent
to Assignment. Landlord consents to the foregoing Assignment and agrees to recognize the Assignee as the “Tenant”
under the Lease from and after the Effective Date specified in the Assignment.

 

2.        Lease
and Defaults. Landlord represents to Assignee that:

 

(a) The Lease,
including amendments, attached hereto as Exhibit A, represents a true and complete copy of the Lease and Amendment to Lease
between Landlord and Assignor with respect to the Premises, and remains in full force and effect;

 

(b) The signature
of the person executing this Assignment evidences the full power and authority of such person to enter into this Assignment on
behalf of Landlord;

 

(c) No third party
consent to the terms of this Assignment is required before the terms of this Assignment are binding upon Landlord; and

 

(d) Neither Landlord
nor Assignor is in default of their obligations under the Lease.

 

	LANDLORD:
	 
	CANYON PORTAL II, L.L.C., an Arizona limited liability company
	 
	 	By:	 
	 	 	Albert B. Spector, Jr.
	 	Its:	 

 

Assignment and Assumption of Lease (Telephone
Room) 

 

    	Signature 2

    	 

     

EXHIBIT
A

 

telephone
room LEASE

 

Assignment and Assumption of Lease (Telephone
Room)

 

    	 

    	 

      

 

 

EX.
2(d)(iii)-G EXHIBIT A

 

TRADING POST SHOPS

  

SECOND AMENDMENT TO TENANT

LEASE

 

 

SEDONA, ARIZONA

 

 

 

 

 

 

 

 

 

Landlord:
Canyon Portal II, L.L.C.

 

Tenant:
L'Auberge Orchards, LLC

 

Date of Amendment: May 14, 2013

  

    	 

    	 

    

 

CANYON PORTAL II, L.L.C.

 

SECOND AMENDMENT TO LEASE

 

THIS SECOND AMENDMENT TO LEASE ("Lease")
is made effective May 14, 2013, by and between Landlord and Tenant (each as defined in the Fundamental Lease provisions below.

 

WHEREAS, Landlord and Tenant entered
into that certain Lease dated April 1, 2010, as amended by the First Amendment to Lease dated February 1, 2011 (collectively, the
"Original Lease"), whereby Landlord leased to Tenant and Tenant leased from Landlord the Premises (as defined below);

 

WHEREAS, the Original Lease
referred to a lease between Landlord and a third party tenant;

 

WHEREAS, Landlord and Tenant desire
to amend the Original Lease to incorporate all terms and conditions within a single document.

 

NOW, THEREFORE, in consideration
of the above referenced recitals, the mutual promises contained herein, and other good and valuable consideration, the receipt
and sufficiency of which is hereby acknowledged, the parties agree as follows:

 

This Lease amends and restates,
in its entirety, the Original Lease.

 

SECTION 1 - FUNDAMENTAL LEASE PROVISIONS.

 

	Landlord: 	Canyon Portal II, L.L.C., an Arizona limited liability company
	 	 
	Tenant: 	L'Auberge Orchards, LLC, an Arizona limited liability company
	 	 
	Trade Name: 	N/A
	 	 
	Lease Term:	
        Commencement Date: May 14, 2013

        Termination Date: December 31, 2040 

	 	 
	Premises:	
        Approximately 174 square feet of the Trading
Post Shops Building as depicted on Exhibit A attached hereto and which parcel upon which the Building is located is legally described
on Exhibit B. 

	 	 
	Rent:	The total gross monthly rent (inclusive of minimum base rent, common area charges and all other additional rent) payable in accordance with the Lease shall be $536 for the period commencing on the date hereof through the fifth (5th) anniversary of the date hereof. Thereafter, the total gross monthly rent payable under this Lease shall be adjusted in accordance with that portion of Section 4.B. of the Original Lease beginning with the second sentence of such Section 4.B.

  

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	Common Area Proportionate Share:	Based upon square footage pursuant to Section 11 below.
	 	 
	Security Deposit Amount:	No Security Deposit is required

 

	Address of Landlord:	
        Canyon Portal II LLC

        c/o Al Spector

        6900 E. Camelback Road, Suite 915

        Scottsdale, Arizona 85251

	 	 
	Address to which Rent Payments should be sent:	
        Canyon Portal II LLC

        do Al Spector

        6900 E. Camelback Road, Suite 915

        Scottsdale, Arizona 85251

	 	 
	Address of Tenant:	
        Orchards Inn & Restaurant LLC

        c/o Al Spector

        6900 E. Camelback Road, Suite 915

        Scottsdale, Arizona 85251

	 	 
	Only Permitted Uses:	Storage facilities and equipment for telephone and electronic equipment.
	 	 
	Guarantors: 	
        None

         

  

The foregoing Fundamental
Lease Provisions are an integral part of this Lease, and each reference in the body of the Lease to any Fundamental Lease Provision
shall be construed to incorporate all of the terms set forth above with respect to such Provisions.

 

SECTION 2 - PREMISES.

 

Subject to the conditions
set forth herein, Landlord hereby leases to Tenant the Premises. A site plan showing the boundaries of the Premises and its relative
location within a larger commercial development comprised of four elements including the Trading Post Shops, Canyon Portal Shops,
North Retail Building, and Orchards Annex (the "Project") is attached hereto as Exhibit A. Tenant's acceptance of the
Premises and Agreement to the terms of this Lease are not conditioned upon any representation by Landlord of the number of square
feet in the Premises.

 

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Tenant is already in possession
of the Premises and Tenant's business is continuing uninterrupted.

 

SECTION 3 - GENERAL PROVISIONS.

 

3.1No Option. The submission of this
Lease by Landlord, its agent or representative for examination or execution by Tenant does not constitute an option or offer to
lease the Premises upon the terms and conditions contained herein or a reservation of the Premises in favor of Tenant, it being
intended hereby that this Lease shall become binding upon Landlord only upon Landlord's delivery to Tenant of a fully executed
counterpart hereof.

 

3.2Approval of Financial Statement.
None

 

3.3No Co-Tenancy Requirement. Landlord
reserves the right to effect such tenancies in the Project as Landlord, in the exercise of its sole business judgment, shall determine
to best promote the interest of the Project. Tenant is not relying on the fact, nor does Landlord represent, that any specific
tenant or kind of tenant or number of tenants shall, during the term of this lease, occupy any space in the Project.

 

3.4Name
Change of the Project. Landlord reserves the right to change the name of the Project from time to time during the term of
this Lease.

 

SECTION 4 - LEASE TERM.

 

4.1Term.
The term of this Lease (herein called the "Lease Term" or the "Term") shall commence on the Commencement Date
and shall continue until the Termination Date, unless the Term is terminated sooner or extended as hereinafter provided.

 

4.2Early Termination. Notwithstanding
anything herein or in the Original Lease to the contrary, Tenant shall have the right to terminate this Lease at any time upon
thirty (30) days prior written notice to Landlord.

 

4.3Holding Over. If Tenant, upon expiration
or termination of this Lease, either by lapse of time or otherwise, remains in possession of the Premises with Landlord's written
consent, but without a new lease reduced to writing and duly executed, Tenant shall be deemed to be occupying the Premises as
a tenant from month to month, subject to all covenants, conditions and provisions of this Lease. If Tenant remains in possession
without Landlord's written consent, Tenant shall be deemed to be in wrongful hold over and shall be subject to all the rights
and remedies provided to Landlord under this Lease and by law, including but not limited to forcible entry and detainer actions
or other eviction processes. During any hold over period, whether with consent or wrongful, the monthly rent shall be two hundred
percent (200%) of Tenant's monthly rent payable during the last month of the Term of this Lease.

 

4.4Abandonment. If Tenant, prior to
the expiration of this Lease, relinquishes possession of the Premises without Landlord's written consent, such relinquishment
shall be deemed to be an abandonment of the Premises and an Event of Default under this Lease.

 

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4.5Surrender
of Premises. Upon any termination of this Lease for any reason, Tenant shall immediately surrender possession of the Premises
to Landlord in good and tenantable repair, reasonable wear and tear excepted, and shall surrender all keys and all copies of such
keys for the Premises to Landlord at the place then fixed for the payment of rent or other agreed upon location.

 

4.6Extension of Term. Landlord grants
to Tenant the right to extend the Lease Term for three (3) additional periods of ten (10) years each. Each extension shall be
upon the same terms and conditions as the Original Lease, as modified by this Amendment.

 

SECTION 5 —RENT, SECURITY DEPOSIT, AND SALES REPORTS.

 

5.1Rent.

 

A.Tenant
shall pay to Landlord the Minimum Rent as set forth in Section 1 under Fundamental Lease Provisions in twelve (12) equal monthly
installments during each Lease Year, in advance, on the first day of each calendar month. The Minimum Rent and Additional Charges
hereinafter provided for shall be paid in lawful money of the United States to Landlord at its address or at such other place as
Landlord may from time to time designate in writing.

 

B.The
Rent provided for in this Section 5.1 shall be subject to adjustment as described herein commencing in the sixth (6th)
year of the term, and for each year thereafter as follows: The base for computing the adjustment is the Consumers' Price Index
for All Urban Consumers, United States Cities Average published by the United States Department of Labor, Bureau of Labor Statistics
(the "Index"), which is in effect on the date of the commencement of the first day of the previous Lease year ("Beginning
Index"). For example, the adjustment for year two would be based on the Index for the first day of Lease year one. The Index
published most immediately preceding the Adjustment Date in question ("Extension Index") is to be used in determining
the amount of the adjustment. If the Extension Index has increased over the Beginning Index, the base monthly rent for the following
year shall be set by multiplying the base monthly rent for the previous year, e.g., for the 12th Lease month, by a fraction, the
numerator of which is the Extension Index and the denominator of which is the Beginning Index. However, the adjustment to the rent
shall be no less than three percent (3%) compounded per annum of the base monthly rent provided in this Lease. As an example, if
year one monthly rent is $1,000.00 and the five percent (5%) is applicable each year, then monthly rent for years two through five
would be: year two - $1,050.00; year three - $1,102.50; year four - $1,157.63; and year five - $1,215.51.

 

If the Index
is changed so that the base year differs from that in effect when the Term commences, the Index shall be converted in accordance
with the conversion factor published by the United States Department of Labor, Bureau of Labor Statistics. If the Index is discontinued
or revised during the Term, such other government index or computation with which it is replaced shall be used in order to obtain
substantially the same result as would be obtained if the Index had not been discontinued or revised.

 

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C.Monthly rent
for the first month shall be paid on the date the Term commences. Monthly rent for any partial month shall be prorated at the rate
of one-thirtieth (1/30) of the monthly rent per day.

 

D.All rental amounts
are "net" rent to Landlord. All Additional Charges (as described in this Lease) shall be deemed rent whether or not expressly
designated as such, and shall be paid in addition to the Minimum Annual Base Rental at the times and in the manner provided for
in this Lease.

 

5.2Security Deposit. None

 

SECTION 6 - NO COUNTERCLAIM OR ABATEMENT OF RENT.

 

6.1No Notice. Except as expressly
provided herein, monthly rental and Additional Charges and all other sums payable by Tenant shall be paid without notice, demand,
counterclaim, setoff, recoupment, deduction or defense of any kind or nature and without abatement, suspension, deferment, diminution
or reduction. Except as expressly provided herein, Tenant waives all rights now or hereafter conferred by statute or otherwise
to quit, terminate or surrender this Lease or the Premises or any part thereof and to any abatement, suspension, deferment, diminution
or reduction of any sum payable by Tenant to Landlord.

 

6.2No Conditional Payment. NO PAYMENT
BY TENANT OR RECEIPT BY LANDLORD OF A LESSER AMOUNT THAN THE TOTAL OF ALL SUMS DUE HEREUNDER SHALL BE DEEMED TO BE OTHER THAN
AN ACCOUNT OF THE EARLIEST STIPULATED RENT, NOR SHALL ANY ENDORSEMENT OR STATEMENT ON ANY CHECK, OTHER PAYMENTS OR ANY ACCOMPANYING
LETTER BE DEEMED AS ACCORD AND/OR SATISFACTION AND LANDLORD MAY ACCEPT SUCH CASH AND/OR NEGOTIATE SUCH CHECK OR PAYMENT WITHOUT
PREJUDICE TO LANDLORD'S RIGHT TO RECOVER THE BALANCE OF SUCH RENT OR PURSUE ANY OTHER REMEDY PROVIDED IN THIS LEASE OR OTHERWISE,
REGARDLESS OF WHETHER LANDLORD MAKES ANY NOTATION ON SUCH INSTRUMENT OF PAYMENT OR OTHERWISE NOTIFIES TENANT THAT SUCH ACCEPTANCE,
CASHING OR NEGOTIATION OF SUCH PAYMENT IS WITHOUT PREJUDICE TO ANY OF LANDLORD'S RIGHTS. TENANT SPECIFICALLY WAIVES THE PROVISIONS
OF A.R.S. 47-1207.

 

SECTION 7 - COMMON AREAS.

 

7.1 Use of Common Areas. All facilities
furnished by Landlord in the Project and designated for the general common use of occupants of the Project, including Tenant hereunder,
its officers, agents, employees and customers, shall at all times be subject to the exclusive control and management of Landlord.
Landlord shall have the right, from time to time, to change the area, level, location and arrangement of parking areas and other
Common Area facilities and to make all rules and regulations pertaining to and necessary for the proper operation and maintenance
thereof. Landlord shall have the exclusive right at any and all times to close any portion of the Common Areas for the purpose
of making repairs, changes or additions thereto; may change the size, area or arrangement of the Common Areas; and may enter into
agreements as Landlord deems appropriate for parking and ingress or egress.

 

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7.2Parking Policy. Each Tenant shall
be allocated one reserved parking space at the Project, determined by square footage of suite, the location of which may be changed
by Landlord from time to time. Tenant shall be responsible for the removal of any vehicle that is unlawfully parked in the Tenant's
reserved parking space. Tenant and its employees shall not park in any parking space that is designated for another Tenant. Any
vehicle that is unlawfully parked in a designated parking space for another Tenant will be towed at the owner's expense. All employees
of Tenant may park at the Project only in parking spaces designated for "Employees" by the Landlord. In order to restrict
the use by Tenant's employees of parking areas designated or which may be designated by Landlord as customer parking areas, Tenant
shall furnish Landlord with the license numbers of any vehicle of Tenant and Tenant's employees promptly after each request for
such information by Landlord.

  

SECTION 8 - USE OF PREMISES.

 

8.1Use. Tenant shall use the Premises
solely for the Permitted Uses set forth in the Fundamental Lease Provisions and not for any other purpose. Tenant shall not use
or permit the Premises to be used in violation of the laws, ordinances, regulations and requirements of the United States, the
State of Arizona, Coconino County, the City of Sedona or any subdivision or department thereof or any other authority or agency
having jurisdiction over the Premises or the Project.

 

8.2Prohibited Conduct. Except by
prior written consent of Landlord, Tenant shall not:

 

A.Use or operate
any machinery that, in Landlord's opinion, is harmful to the Premises or the Project or disturbing to other tenants in the building
of which the Premises is a part; use any loud speakers, televisions, stereos, radios or other devices in a manner so as to be heard
outside the Premises.

 

B.Do or suffer
to be done any act, matter or thing objectionable to the fire, casualty or liability insurance carriers whereby any insurance now
in force or hereafter to be placed on the Premises or the Project, or any part thereof, shall become void or suspended, or whereby
the same shall be rated as a more hazardous risk than at the date when Tenant receives possession of the Premises. In case of a
breach of this covenant, in addition to all other remedies of Landlord hereunder, Tenant agrees to pay to Landlord as additional
rent any and all increase or increases of premiums on insurance carried by Landlord on the Premises or the Project.

 

C.Do or cause
to be done any act, matter or thing in violation of any federal, state, county or local law, statute, regulation, rule or ordinance.

 

8.3Prescribed Conduct.
At all times throughout the Lease Term, Tenant shall:

 

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A.Comply
with any and all requirements of any of the constituted public authorities and with the terms of any state or federal statute or
local ordinance or regulation applicable to Tenant or its use, safety, cleanliness or occupation of the Premises, and save Landlord
harmless from penalties, fines, costs, expenses or damages resulting from Tenant's failure to do so.

 

B.Upon
Tenant becoming aware of any accident, fire, pest infestation, or damage occurring on or to the Premises, Tenant shall give Landlord
prompt written notice of any such accident, fire, pest infestation, or damage.

 

C.Load
and unload goods at such times in the areas and through such entrances as may be reasonably designated for "Delivery"
by Landlord. Such trailers or trucks shall not be permitted to remain parked overnight in any area of the Project, whether loaded
or unloaded. Designated fire lanes shall not be used for the loading or unloading of merchandise, parking or standing of running
vehicles at any time. The unlawful use of such fire lanes may result in the towing of the offending vehicle and subject the owner
or user thereof to all applicable fines established by the City of Sedans and/or Landlord.

 

SECTION 9 - CONSTRUCTION OF IMPROVEMENTS.

 

9.1Construction.

 

A.Landlord

 

B.Tenant

 

9.2Tenant Improvements. All Tenant
Improvements will be performed by and the cost will be borne by Tenant. Tenant will be responsible for obtaining all municipal
permits and paying all applicable fees.

 

9.3Written Approval. Tenant shall
not make or cause to be made any alterations, additions or improvements to the Premises, without first obtaining Landlord's written
approval and consent, which consent will not be unreasonably withheld, conditioned or delayed. Tenant shall present to Landlord
plans and specifications for such work at the time approval is sought. For any alterations, additions or improvements to the Premises
costing in excess of $500,000, in each instance, Landlord may condition its approval upon the requirement that Tenant, or its
contractor, secure and bear the cost of a labor and materials payment bond. All alterations, improvements, additions and fixtures
made or installed by Tenant shall remain upon the Premises at the expiration or earlier termination of this Lease and shall become
the property of Landlord.

 

9.4Trade Fixtures. Tenant shall
not cut or drill into or secure any trade fixtures, apparatus or equipment of any kind to any part of the Premises without
first obtaining the written consent of Landlord, which shall not be unreasonably withheld. All furnishings, equipment and
machines installed by Tenant and that are not trade fixtures in the Premises shall remain the property of Tenant subject to
any lien provided Landlord by law and shall be removed at the expiration or earlier termination of this Lease, or any renewal
or extension thereof; provided, Tenant shall not at such time be in default under any covenant or agreement contained in this
Lease and provided further that in the event of such removal, Tenant shall promptly restore the Premises to its original
order and condition. Any such furnishings, trade fixtures, equipment and machines not removed at or prior to such termination
of this Lease shall be and become the property of Landlord.

 

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SECTION 10 - TENANT OBLIGATIONS.

 

10.1 Payment
by Tenant. Tenant shall pay and discharge punctually as and when the same shall become due and payable, each and every cost,
expense and obligation of every kind and nature, foreseen or unforeseen, arising out of the possession, operation, maintenance,
alteration, repair, rebuilding, use or occupancy of the Premises. Tenant shall also pay and discharge punctually, as and when the
same shall become due and payable without penalty, personal property, business, occupation and occupational license taxes, water,
sewer, electricity and telephone charges and fees.

 

10.2 Payment
by Landlord. Tenant shall not be required to pay or reimburse Landlord for (i) any local, state or federal capital levy, franchise
tax, revenue tax, income tax, or profits tax of Landlord unless and to the extent such levy, tax or imposition is in lieu of or
a substitute for any other levy, tax or imposition now or later in existence upon or with respect to the Premises which, if such
other levy, tax or imposition were in effect, would be payable by Tenant under the provisions hereof; (ii) any estate, inheritance,
devolution, succession or transfer tax which may be imposed upon or with respect to any transfer (other than taxes in connection
with a conveyance by Landlord to Tenant) of Landlord’s interest in the Premises; or (iii) any lien not of record as of the
Commencement Date arising from the unilateral acts or omissions of Landlord and unrelated to a default of Tenant under this Lease.

 

10.3 Proof
of Payment. Tenant, upon Landlord's request, shall furnish to Landlord within thirty (30) days thereafter proof of the payment
of any obligation to be paid by Tenant.

 

10.4 Personal
Property Taxes. Tenant shall be responsible for and shall pay before delinquency all taxes levied or assessed against any leasehold
interest or personal property of any kind owned or placed in, upon or about the Premises by Tenant. Tenant hereby agrees to protect
and hold harmless Landlord and the Premises from any liability for Tenant's share of any and all such taxes, assessments and charges
together with any interest, penalties or other charges thereby imposed, and from any sale or other proceedings to enforce payment
thereof, and to pay all such taxes, assessments and charges before delinquency and before same become a lien.

 

10.5 Premises
Utilities. Landlord shall, at Landlord's expense, cause to be provided to the Premises all lines for water, gas, sewer, and
electricity necessary for the operation of the Premises for the Permitted Use. Tenant shall be responsible for any and shall pay
for all utilities used or consumed in or upon the Premises as and when the charges shall become due and payable during the Term.
Tenant shall make all appropriate applications to local utility companies and pay all required deposits. In no event shall Landlord
be liable for any interruption or failure in the supply of any utilities to the Premises.

 

SECTION 11 - COMMON AREA MAINTENANCE.

 

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11.1 Expenses.
From and after the Commencement Date and continuing for the Term hereof, Tenant shall pay to Landlord, as Additional Rent, Tenant's
"Proportionate Share" of: (i) all costs of operation and maintenance of the Common Areas of the Project; (ii) all Common
Area utilities; (iii) all real estate and assessment taxes levied and assessed against the Project; (iv) all insurance coverage
upon the Project and its operations; and (v) Landlord's management fee. Tenant's Proportionate Share shall be payable in equal
monthly installments at the same time rent is payable hereunder, without demand and without any deduction or set-off whatsoever.

 

Notwithstanding the foregoing to the contrary,
the following items shall not be included in Landlords calculation of Common Area Maintenance Expenses pursuant to Section 11.1
of the Original Lease:

 

(i)depreciation;

 

(ii)costs
of repairing and replacing to the extent that proceeds of insurance or condemnation awards are received therefor;

 

(iii)costs
incurred in renovating or otherwise improving, decorating, painting or altering space for tenants in the Project;

 

(iv)cost of
procuring or relocating tenants, including attorneys' fees, accounting fees, design fees, advertising expenses and broker commissions;

 

(v)expenses
incurred in connection with the enforcement of the terms of any lease, including the cost of removing and storing the property
of former occupants of the Project;

 

(vi)cost of
any special or unique service furnished on a selective basis to individual occupants of the Project;

 

(vii)ground
rents, debt service payments, loan origination fees, loan closing costs and similar expenses relating to indebtedness encumbering
the Project;

 

(viii)promotional,
marketing or entertainment expenses, including charitable or political contributions;

 

(ix)fines
or penalties assessed against Landlord which are not the result of Tenant's failure to timely perform any obligation of Tenant
under this Lease;

 

(x)Except
as provided in Section 11.1(A)(4), property management fees; salaries or other compensation paid to executive employees above the
grade of Project or property manager (including profit sharing, bonuses and 401(k) savings plans); expenses relating to the formation,
modification, maintenance and dissolution of the entity comprising Landlord, including accounting, auditing and legal fees and
key man disability insurance; any expense representing an amount paid by Landlord to a related entity which is in excess of the
amount which would have been paid in the absence of that relationship; Landlord's general overhead and general and administrative
expenses, including costs relating to accounting, payroll and computer services; rental costs relating to any management office
(on or off site) and costs associated with the purchase or rental of furniture, fixtures or equipment for Landlord's offices;

 

(xi)costs
incurred by Landlord to rectify violations of laws existing as of the Effective Date;

 

(xii)reserves;

 

(xiii)cost
of repairing damage caused by the negligence of Landlord, its agents, employees and contractors or other tenants and their respective
agents, employees and contractors;

 

(xiv)costs
for investigating, monitoring or remediation Hazardous Materials not caused by Tenant, Tenant's agents, contractors, or employees;
and

 

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(xv) capital expenditures, except
those (i) made primarily to reduce Common Area Costs or to comply with any Laws or other governmental requirements enacted after
the effective date of this Lease, or (ii) for repairs (as opposed to additions or new improvements, except that Landlord shall
be permitted to include new improvements involving signs for the Center or the upgrading or addition of lights in the parking and
other Common Areas), or (iii) repairs of the parking lots, parking structures, sidewalks, curb cuts, and driveways; provided, all
such permitted capital expenditures (together with reasonable finance charges) shall be amortized on a straight-line basis without
interest for purposes of this Lease over the shorter of seven (7) years or the useful life of such improvement. Tenant shall be
responsible for Tenant's Proportionate Share of such permitted amortization of capital expenditures during the Term.

 

Landlord
shall allocate the foregoing charges among all the occupants of the Project according to each occupant's proportionate share. Tenant's
Proportionate Share shall be the ratio that the total floor area of the Premises bears to the total floor area of all buildings
in the Project which are from time to time completed as of the first day of each calendar quarter.

 

A.FOR PURPOSES OF THIS SECTION 11.1:

 

1.The cost of
operation and maintenance of the common facilities includes all expenditures incurred by or on behalf of Landlord in keeping and
maintaining the foundations, exterior walls, floors and roofs of the Project, all repairs to and replacements of equipment associated
with the Project including, but not limited to, air-conditioning units and the cost of operating and maintaining the common facilities,
including without limitation, the cost of all of Landlord's gardening and landscaping, the current portion of any assessments against
the Project for any purpose, repairs, preventive maintenance, repainting including restriping of parking lot and access ways, updating
and maintenance of directory signs, rental of signs and equipment, lighting, sanitary control, cleaning, sweeping, removal of ice,
snow, trash, rubbish, garbage and other refuse, depreciation over a period of not exceeding sixty (60) months of machinery, equipment
and other assets used in the operation and maintenance of the Project, repair, maintenance or replacement of onsite water lines,
sanitary sewer lines, septic tanks, leach lines and evapotranspiration beds, storm water lines and electrical lines and equipment
serving the property, the cost of police, security and traffic control services, reasonable reserves for anticipated expenditures,
the cost and maintenance and upkeep of the public restroom facilities, marketing and advertising expenditures for Canyon Portal
complex and the cost of all personnel required to supervise, implement and accomplish all of the foregoing, including but not limited
to, on-site management and maintenance personnel.

 

2.Real
Estate Taxes includes all taxes, assessments and other governmental fees or charges, general and specific, ordinary and extraordinary,
of any kind and nature whatsoever, including but not limited to, assessments for public improvements or benefits, which shall,
during the Term hereof, be assessed, levied, or imposed upon the Project or Landlord or become due or payable.

 

3.Insurance
coverage upon the Project and its operations includes the cost of all Landlord's insurance relating to the common facilities of
the Project as a whole or the operations thereon, including, but not limited to: casualty insurance, flood insurance, rent loss
insurance, fire insurance and extended coverage, as well as general liability insurance, umbrella liability insurance, bodily
injury, public liability, property damage liability, automobile insurance, sign insurance and any other insurance carried by the
Landlord in coverage limits selected by the Landlord.

 

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4.Landlord's Management Fee is comprised
of compensation and fees paid by Landlord to an independent management agent or broker for management of the Project, or if Landlord
manages the Project on its own behalf, such fees shall be stipulated to be and computed as four percent (4%) of the gross rent
received by Landlord from all Project Tenants for the fiscal year in question. In addition, the Manager shall charge and be paid
an additional fee of ten percent (10%) of the total of all Common Area Expenses to cover supervision, administration and overhead
of the Project.

 

11.2 Common
Area Expenses Estimates. At the beginning of each calendar year, Landlord shall have the right to prospectively estimate the
total amount of Common Area Expenses anticipated for such year, based on Landlord's experience and the latest available tax information,
and Landlord shall thereafter notify Tenant of the portion of estimated Common Area Expenses which Tenant shall be expected to
pay each month. Within ninety (90) days following the end of the applicable calendar year, Landlord shall furnish Tenant a statement
setting forth the amount of the actual Common Area Expenses for such year, showing in adequate detail the manner in which Tenant's
portion of Common Area Expenses has been computed and the payments made by Tenant for Common Area Expenses during such year. If
the amount collected by Landlord from Tenant for estimated Common Area Expenses exceeds the actual amount of Common Area Expenses
for such year, Landlord shall refund the excess within thirty (30) days or shall apply any credit to the next Common Area Expense
payment to be made by Tenant. If Tenant's payments of estimated Common Area Expenses are less than the total amount of actual Common
Area Expenses for such year, Tenant shall pay the deficiency within thirty (30) days.

 

SECTION 12 - MAINTENANCE AND REPAIRS BY TENANT.

 

12.1 Tenant's
Obligation. Tenant shall keep and maintain in good order, condition and repair (including any such replacement, periodic painting
and restoration as is required for that purpose) the Premises and every part thereof and any and all appurtenances thereto wherever
located, including but not limited to, the exterior and interior portion of all doors, door checks, door locks, windows, all plumbing
and sewage facilities within the Premises, all alterations, improvements and installations made by Tenant and any repairs required
to be made due to burglary or other illegal entry into the Premises. Tenant shall maintain and bear the expense of the light fixtures
and bulbs, air-conditioning unit and filters, heating unit or furnace, janitorial services, interior pest control, and the like.

 

12.2 Prohibited
Acts. Tenant shall not cause or permit accumulation of any debris or extraneous matter on the roof of the Premises and
will be responsible for any damage caused thereto by any acts of Tenant, its agents, servants, employees or contractors.
Tenant shall place any rubbish, broken down boxes, trash or other excess matter only in such containers as are authorized
from time to time by Landlord; keep the Premises (including all exterior surfaces and both sides of all glass) clean,
orderly, sanitary and free from objectionable odors and from insects, vermin, and other pests; and keep the outside areas and
sidewalks immediately adjoining the Premises clean and free
from empty boxes, trash of any kind, ice and any other obstructions or safety hazards.

 

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12.3 Rights
of Landlord. If Tenant refuses or fails to commence and complete repairs or maintenance required herein promptly and adequately,
Landlord may, but shall not be required to, make and complete the repairs or perform the maintenance. The cost of such repairs
or maintenance shall be paid immediately by Tenant to Landlord as additional rent upon demand.

 

SECTION 13 - REPAIR BY LANDLORD.

 

13.1 Repair
by Landlord. Landlord shall keep and maintain the foundation, exterior walls, floors and roof of the building in which the
Premises are located (but the same shall be included in the cost of operations and maintenance of the common facilities as defined
in Section 11), exclusive of doors, door frames, door checks, door locks, windows and window frames located in exterior building
walls. Landlord shall not, however, be required to make any such repairs when such repairs are the result of misuse or neglect
by Tenant, its agents, employees, invitees, licensees or contractors. Any repairs required to be made by reason of such Tenant
misuse or neglect shall be the responsibility of Tenant, the above provisions to the contrary notwithstanding. Except as provided
herein, Landlord shall have no obligation to alter or modify the Premises, or any part thereof, or to repair and maintain any plumbing,
heating, electrical, air-conditioning or other mechanical installation in the Premises. Under no circumstances shall Landlord be
obligated to repair, replace or maintain any plate glass or door or window glass no matter what the cause. If Tenant deems that
Landlord is in default in any work or repair to be done by Landlord, the Tenant should give Landlord written notice of such default.
Landlord shall have twenty (10) days within which to cure the default. In no event, however, will rent be abated by Tenant due
to any alleged default of Landlord.

 

13.2 Hazardous
Materials. Exclusive of Hazardous Materials normally associated with Tenant's permitted use, if any, Tenant covenants
and agrees not to use, generate, release, manage, treat, manufacture, store, or dispose of, on, under or about, or transport
to or from (any of the foregoing hereinafter a "Use") the Premises any Hazardous Materials (other than "De
Minimis" amounts (as defined below)). Tenant further covenants and agrees to pay all costs and expenses associated with
enforcement, removal, remedial or other governmental or regulatory actions, agreements or order threatened, instituted or
completed pursuant to any Hazardous Materials Laws, and all audits, tests, investigations, cleanup, reports and other such
items incurred in connection with any efforts to complete, satisfy or resolve any matters, issues or concerns, whether
governmental or otherwise, arising out of or in any way related to the Use of Hazardous Materials in any amount by Tenant,
its employees, agents, invitees, subtenants, licensees, assignees or contractors. For purposes of this Lease (i) the term
"Hazardous Materials" shall include but not be limited to asbestos, urea formaldehyde, polychlorinated biphenyls,
automotive and petroleum products and byproducts (including, without limitation, gasoline, diesel and other fuels, new, used
and recycled oil, grease, brake fluid, antifreeze, and other automotive fluids installed in or recovered from service
vehicles or otherwise, and any other fuel additive, derivative, lubricant or byproduct generated, stored or used in Tenant's
business operation or otherwise occurring), pesticides, radioactive materials, hazardous wastes, toxic substances and any
other related or dangerous toxic or hazardous chemical, material or substance defined as hazardous or regulated or as a
pollutant or contaminant in, or the use of or exposure to which is prohibited, limited, governed or regulated by, any
Hazardous Materials Laws; (ii) the term "De Minimis" amounts shall mean, with respect to any given level
of Hazardous Materials, that such level or quantity of Hazardous Materials in any form or combination of forms (a) does not
constitute a violation of any Hazardous Materials Laws; and (b) is customarily employed in, or associated with, similar
retail projects in Coconino County, Arizona; and (iii) the term "Hazardous Materials Laws" shall mean any federal,
state, county, municipal, local or other statute, law, ordinance or regulation now or hereafter enacted which may relate or
legislate the protection of human health or the environment, including but not limited to the Comprehensive Environment
Response, Compensation and Liability Act of 1980, 42 U.S.C. Section 9601, etseq.; the Hazardous Materials
Transportation Act, 49 U.S.C. Section 1801, etseq.; the Resource Conservation and Recovery Act, 42 U.S.C. Section
6901, etseq.; the Federal Water Pollution Control Act, 33 U.S.C. Section 1251, etseq.; the Toxic Substances
Control Act of 1976, 15 U.S.C. Section 2601, etseq.; Ariz.Rev. Stat. Ann.Title 49 (The "Arizona Environmental
Quality Act of 1986"); and any rules, regulations or guidelines adopted or promulgated pursuant to any of the foregoing
as they may be adopted, amended or replaced from time to time.

 

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SECTION 14 - LIENS.

 

14.1 No Liens.
Tenant shall have no authority to do any act or make any contract which may create or be the basis for any lien, mortgage or other
encumbrance upon any interest of Landlord in the Premises or which would cause any document to be recorded against the Premises
or the Project. Should Tenant cause any construction, alterations, rebuildings, restorations, replacements, changes, additions,
improvements or repairs to be made on the Premises, or cause any labor to be performed or material to be furnished thereon, therein
or thereto, neither Landlord nor the Premises shall under any circumstances be liable for the payment of any expense incurred or
for the value of any work done or material furnished, and Tenant shall be solely and wholly responsible to contractors, laborers
and materialmen for performing such labor and furnishing such material.

 

14.2 Tenant's Obligations.
The initial and any subsequent alterations or improvements made by Tenant to the Premises must be paid for by Tenant when such
alterations or improvements are made. Nothing in this Lease shall be construed to authorize Tenant, or any person dealing with
or under Tenant, to charge the rents of the Premises, or the property and buildings of which the Premises form a part, or the interest
of Landlord in the state of the Premises, with a mechanics' lien or encumbrance of any kind, and under no circumstances shall Tenant
be construed to be the agent, employee or representative of the Landlord in the making of any such improvements or alterations
to the Premises.

 

14.3 Removal
of Liens. If, because of any act or omission (or alleged act or omission) of Tenant, any mechanic's, materialman's, or
other lien, charge or order for the payment of money shall be filed or recorded against the Premises or against Landlord
(whether or not such lien, charge or order is valid or enforceable as such), Tenant shall, at its own expense, either cause
the same to be discharged of record pursuant to A.R.S. §33-1004, or otherwise cause such discharge, within ten (10) days
after Tenant shall have received notice of the filing thereof, or Tenant may, within such period, furnish to Landlord a bond
satisfactory to Landlord against such lien, charge or order, in which case Tenant shall have the right in good faith to
contest the validity or amount thereof.

 

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SECTION 15 - INSURANCE.

 

15.1 Project
Insurance. Landlord bears the risk of and may insure as a Common Area Expense as practical or as required by Landlord's Lender,
the operation of the Project as a whole or the common areas thereof. Such insurance may include, but is not limited to, general
liability, umbrella excess liability, bodily injury, public liability, property damage liability, fire and extended coverage in
amounts not less than eighty percent (80%) of the replacement cost of the Project, sign insurance and the like in coverage limits
selected by Landlord. Tenant shall pay to Landlord its "Proportionate Share" of such insurance as provided in Section
11 above.

 

15.2 Tenant's
Property. Tenant agrees that all property owned by it in, on, or about the Premises shall be at the sole risk and hazard of
the Tenant. Landlord shall not be liable or responsible for any loss or damage to Tenant, or anyone claiming under or through Tenant,
or otherwise, whether caused by or resulting from a peril required to be insured hereunder, or from water, gas leakage, plumbing,
electricity or electrical apparatus, pipe or apparatus of any kind, the elements or other similar or dissimilar causes, and whether
or not originating in the Premises or elsewhere, irrespective of whether or not Landlord may be deemed to have been negligent with
respect thereto, and provided such damage or loss is not the result of any intentional and wrongful act of Landlord. Tenant shall
require all policies of risk insurance carried by it on its property in the Premises to contain or be endorsed with the provision
in and by which the insurer designated therein shall waive its right of subrogation against Landlord.

 

15.3 Tenant's
Operations. All operations conducted by Tenant shall be at Tenant's sole risk. In addition, Tenant shall procure insurance
for its operations as follows:

 

A.Tenant
shall keep in force at its own expense public liability insurance and comprehensive general liability insurance, including contractual
liability insurance sufficient to cover all phases and aspects of the operation and conduct of its business, with minimum limits
of $2,000,000.00 on account of bodily injuries to or death of one person and $3,000,000.00 on account of bodily injuries to or
death of more than one person as a result of any one accident or disaster, and $2,000,000.00 as a result of damage to property.

 

B.Tenant
shall keep and maintain in force during the Term hereof, plate glass insurance upon windows and doors in the Premises as required
by Landlord unless Landlord maintains such insurance on behalf of all Tenants and treats it as a Common Area Expense.

 

15.4 Certificate
of Insurance. Tenant shall provide annually to Landlord a Certificate of Insurance listing Landlord as an additional named
insured.

 

15.5 Insurance
Companies. The policies affording the insurance required by this Lease shall be with companies (rated A-[minus] VII or
better, A.M. Best's Key Rating Guide) authorized to do business in the State of Arizona and shall be in a form reasonably
satisfactory to Landlord, shall provide replacement cost coverage, shall name Landlord as an additional insured, and shall
provide for payment of loss thereunder to Landlord and Tenant as their interests, may appear. The policies or certificates
evidencing such insurance shall be delivered to Landlord on or before the Commencement Date and renewals thereof shall be
delivered to Landlord at least thirty (30) days prior to the expiration dates of the respective policies. Alternatively, the
insurance required by this Section 15 may be provided under a blanket policy to the Tenant’s existing insurance
policy.

 

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15.6 Failure
to Procure Insurance. In the event Tenant shall fail to procure insurance required under this Lease or fail to maintain the
same in force continuously during the Term, or any extension thereof, Landlord shall be entitled to procure such insurance and
Tenant shall, upon demand, immediately reimburse Landlord for such premium expense or Landlord may declare Tenant in default under
this Lease.

 

15.7 Waiver
of Subrogation. Except with respect to Worker's Compensation, to which no waiver of subrogation will apply, each party hereby
waives any and every right or cause of action for the events which occur or accrue during the Lease Term for any and all loss of,
or damage to, any of its property (whether or not such loss or damage is caused by the fault or negligence of the other party or
anyone for whom said other party may be responsible), which loss or damage is covered by valid and collectible fire, extended coverage,
"All Risk" or similar policies covering real property, personal property or business interruption insurance policies,
to the extent that such loss or damage is recovered under said insurance policies. Said waivers shall be in addition to, and not
in limitation or derogation of, any other waiver or release contained in this Lease with respect to any loss or damage to property
of the parties hereto. Written notice of the terms of such mutual waivers shall be given to each insurance carrier and the insurance
policies shall be properly endorsed, if necessary, to prevent the invalidation of coverage by reason of said waivers.

 

SECTION 16 - DAMAGE OR DESTRUCTION.

 

If all or
any portion of the Premises or the Project is damaged by fire or other casualty insurable under a standard fire insurance policy
with a standard extended coverage endorsement, Minimum Monthly Rental and Additional Rent shall abate and Landlord shall promptly
repair as is necessary to replace the Premises and when placed in such condition the Premises shall be deemed restored and rendered
tenantable, such repair or rebuilding to be commenced within a reasonable time after the occurrence. If such damage occurs in the
last two years of the Lease Term or during any Option Term, Tenant or Landlord shall have the option of terminating the Lease upon
written notice to the other party. If Landlord's Lender requires that the insurance proceeds be used to retire the debt, Landlord
shall have no obligation to rebuild, and this Lease shall terminate upon notice to Tenant. Promptly following Landlord's repair
or rebuilding, Tenant, at Tenant's sole expense, shall repair or replace its stock in trade, fixtures, furniture, furnishings,
floor coverings and equipment, and if Tenant has closed, Tenant shall promptly reopen for business.

 

SECTION 17 - EASEMENTS.

 

Landlord
expressly reserves all rights in and with respect to the use of the Premises as provided herein, including (without in any
way limiting the generality of the foregoing) the rights of Landlord to establish Common Areas and grant parking easements to
others and to enter upon the Premises and give easements to others for the purpose of installing, using, maintaining,
renewing and replacing such overhead or underground water, gas, sewer, and other pipe lines, and telephone, electric and
power lines, cables and conduits as Landlord may deem desirable in connection with the development or use of the other
property in the Project or any other property in the neighborhood thereof, whether owned by Landlord or not.

 

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SECTION 18 - INDEMNIFICATION.

 

18.1 By
Tenant. Excepting any responsibility allocated to Landlord by reason of its gross negligence (excluding from this exception,
however, any responsibility allocated to Landlord by reason of its failure to enforce the terms of this Lease), Tenant shall indemnify,
defend and hold Landlord harmless for, from and against all liabilities, obligations, claims, suits, damages, penalties, causes
of action, costs and expenses (including without limitation, reasonable attorneys' fees and expenses) imposed upon or asserted
against Landlord by reason of the gross negligence or willful misconduct of Tenant, its agents, employees, contractors, suppliers,
licensees, invitees and guests and/or the occurrence of any of the following during the Term: (i) any use, non-use or condition
of the Premises or any part thereof; (ii) any accident, injury to or death of persons (including workmen) or loss of or damage
to property occurring on or about the Premises or any part thereof; (iii) any failure on the part of Tenant to perform or comply
with any of the provisions of this Lease; (iv) performance of any labor or services or the furnishings of any materials or other
property in respect of the Premises or any part thereof (excluding any such matters performed or furnished by or at the request
of Landlord and unrelated to a default of Tenant under this Lease); or (v) any failure on the part of Tenant to clean up and/or
dispose of any Hazardous Materials, as described in Section 13.2 above, in accordance with the requirements of this Lease and applicable
law. In the event Landlord should be made a defendant in any action, suit or proceeding brought by reason of any such occurrence,
Tenant shall, at its own expense, resist and defend such action, suit or proceeding or cause the same to be resisted and defended
by legal counsel designated by Tenant but approved by Landlord. If any such action, suit or proceeding should result in a final
judgment against Landlord, Tenant shall promptly satisfy and discharge such judgment or shall cause such judgment to be promptly
satisfied and discharged. The obligations of Tenant under this Section 18 arising by reason of any such occurrence taking place
while this Lease is in effect shall survive the termination of this Lease..

 

18.2 By
Landlord. Landlord shall save, hold harmless and indemnify Tenant for, from and against all liabilities, obligations,
claims, suits, damages, penalties, causes of action, costs and expenses (including, without limitation, reasonable attorneys'
fees and expenses) imposed upon or asserted against Tenant by reason of the gross negligence or willful misconduct of
Landlord or its agents, contractors, servants or employees and/or the occurrence of any of the following during the Term: (i)
any use or condition of the Premises or any part thereof (which Landlord is required to maintain); (ii) any accident, injury
to or death of persons (including workmen) or loss of or damage to property occurring on or about the Common Areas; (iii) any
failure on the part of Landlord to perform or comply with any of the provisions of this Lease; and (iv) performance of any
labor or services or the furnishings of any materials or other property in respect of the Premises or any part thereof
(excluding any such matters performed or furnished by or at the request of Tenant). In the event Tenant should be made a
defendant in any action, suit or proceeding brought by reason of any such occurrence, Landlord shall, at its own expense,
resist and defend such action, suit or proceeding or cause the same to be resisted and defended by legal counsel designated
by Landlord but approved by Tenant. If any such action, suit or proceeding should result in a final judgment against Tenant,
Landlord shall promptly satisfy and discharge such judgment or shall cause such judgment to be promptly satisfied and
discharged. The obligations of Landlord under this Section 18 arising by reason of any such occurrence taking place while
this Lease is in effect shall survive the termination of this Lease..

 

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SECTION 19 - ASSIGNMENT AND SUBLETTING.

 

Tenant shall have the right to
transfer or assign this Lease or sublet all or any portion of the Premises without Landlord's consent, but with prior written notice
to Landlord; provided, the assignee or subtenant expressly assumes all obligations of Tenant under the Lease. Notwithstanding the
foregoing, Landlord shall not have the right to consent to any assignment or subletting of this Lease or any portion of the Premises
to an entity which controls, is controlled by or is under common control with Tenant, and Landlord shall not withhold its consent
to any proposed assignee or subtenant with financial wherewithal equal to or superior to that of Tenant and who is actively engaged
in the hospitality industry.

  

SECTION 20 - SUBJECT TO MASTER LEASE.

 

Tenant acknowledges
that this Lease is subordinate to a Master Lease of the Project among CANYON PORTAL PROPERTIES, L.L.C. and ATHERTON VENTURES, L.L.C.
as Landlord and CANYON PORTAL II, L.L.C., an Arizona limited liability company as Tenant. A Memorandum of Lease is recorded in
Coconino County as Instrument No. 98-21399 on July 2, 1998. An Amendment to Memorandum of Lease is recorded in Coconino County
as Instrument No. 3288292 on October 14, 2004.

 

SECTION 21 - DEFAULTS BY TENANT.

 

21.1 Event
of Default. Each of the following occurrences shall be an Event of Default hereunder:

 

A.If Tenant
fails to pay any Rent, Additional Charges or any sum due hereunder promptly when due and such failure continues for three (3) days
after the date such payment was due.

 

B.If Tenant
defaults or breaches any of the other (non-monetary) covenants, agreements, conditions or undertakings herein to be kept, observed
and performed by Tenant and such default continues for ten (10) days after notice thereof in writing to Tenant.

 

C.TENANT ACKNOWLEDGES
THAT ANY VIOLATION OF ANY OF THE PRESCRIBED CONDUCT AS SET FORTH IN PARAGRAPH 8.3 IS A MATERIAL BREACH OF THIS LEASE. IF IN ANY
TWELVE (12) MONTH PERIOD THERE ARE MORE THAN TWO (2) NOTICES OF VIOLATION OFPARAGRAPH 8.3 SENT BY LANDLORD TO TENANT, THEN LANDLORDSHALL
HAVE THE RIGHT TO TERMINATE THIS LEASE WITHOUT NOTICE.

 

TENANT'S
INITIALS: _______________

 

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D.If Tenant
files any petition under any chapter or section of the Federal Bankruptcy Code or any similar law, state or federal, whether now
or hereafter existing, or shall file an answer admitting insolvency or inability to pay its debts.

 

E.If Tenant
fails to obtain a stay of any involuntary proceedings under any chapter or section of the Federal Bankruptcy Code within sixty
(60) days after the institution thereof

 

F.If a trustee
or receiver is appointed for Tenant or for a major portion of its property or for any portion of the Premises and such appointment
is not vacated and dismissed within sixty (60) days thereafter and in any event prior to any action adverse to the interest of
Tenant or Landlord having been taken by such trustee or receiver.

 

G.If any court
takes jurisdiction of a major portion of the property of Tenant or any part of the Premises in any involuntary proceeding for dissolution,
liquidation or winding up of Tenant and such jurisdiction is not relinquished or vacated within sixty (60) days.

 

H.If Tenant
makes an assignment for the benefit of its creditors.

 

21.2 Re-Enter
of Premises. Upon the occurrence of any such Event(s) of Default and at any time thereafter, Landlord shall have the right,
at its election, to reenter the Premises, or any part thereof, either with or without process of law, and to expel, remove and
evict Tenant and all persons occupying or upon the same under Tenant, using such force as may be lawful and necessary in so doing,
and to possess the Premises and enjoy the same as in their former estate and to take full possession of and control over the Premises
and the buildings and improvements thereon and to have, hold and enjoy the same and to receive all rental income of and from the
same. No reentry by Landlord shall be deemed an acceptance of a surrender of this Lease, nor shall it absolve or discharge Tenant
from any liability under this Lease. Upon such reentry, all rights of Tenant to occupy or possess the Premises shall cease and
terminate.

 

21.3 Lease
Termination. Upon the occurrence of any such Event(s) of Default and at any time thereafter, Landlord shall have the right,
at its election, with or without reentry as provided in Section 21.2, to give written notice to Tenant stating that this Lease
shall terminate on the date specified by such notice, and upon the date specified in such notice this Lease and the Term hereby
demised and all rights of Tenant hereunder shall terminate. Upon such termination, Tenant shall quit and peacefully surrender to
Landlord the Premises and the buildings and improvements then situated thereon.

 

21.4 Reletting. At
any time and from time to time after such reentry, Landlord may re-let the Premises and the buildings and
improvements thereon, or any part thereof, in the name of Landlord or otherwise, for such term or terms(which may be greater
or less than the period which would otherwise have constituted the balance of the Term of this Lease), and on such conditions
(which may include concessions or free rental) as Landlord, in its reasonable discretion, may determine and may collect and
receive the rental therefore. However, in no event shall Landlord be under any obligation to re-let the Premises and the
buildings and improvements thereon, or any part thereof, and Landlord shall in no way be responsible or liable for any
failure to re-let or for any failure to collect any rental due upon any such re-letting. Even though it may re-let the
Premises, Landlord shall have the right thereafter to terminate this Lease and all of the rights of Tenant in or to the
Premises. Nothing contained in the foregoing shall be deemed a waiver or relinquishment by Tenant of any duty imposed by law
on Landlord to mitigate its damages.

 

    	18

    	 

    

 

21.5 Survival
of Liability. Unless Landlord shall have notified Tenant in writing that it has elected to terminate this Lease, no such reentry
or action in lawful detainer or otherwise to obtain possession of the Premises shall relieve Tenant of its liability and obligations
under this Lease; and all such liability and obligations shall survive any such reentry. In the event of any such reentry, whether
or not the Premises and the buildings and improvements thereon, or any part thereof, shall have been re-let, Tenant shall pay to
Landlord the entire rental and all other charges required to be paid by Tenant up to the time of such reentry of this Lease, and
thereafter Tenant, until the end of what would have been the Term of this Lease in the absence of such reentry, shall be liable
to Landlord, and shall pay to Landlord, as damages for Tenant's default:

 

A.The
amount of Minimum Annual Base Rental and additional charges which would be payable under this Lease by Tenant if this Lease were
still in effect, less

 

B.The
net proceeds of any re-letting, after deducting all of Landlord's expenses in connection with such re-letting, including without
limitation all repossession costs, brokerage commissions, legal expenses, attorneys' fees, alteration costs and expenses of preparation
for such re-letting.

 

Tenant
shall be liable for and pay such damages to Landlord on a monthly basis on the first day of each month and Landlord shall be entitled
to recover from Tenant monthly as the same shall arise. The excess, if any, in any month or months, of the net proceeds described
in subparagraph (B) above actually received by Landlord over the Minimum Annual Base Rental and Additional Charges described in
subparagraph (A) above shall belong to Landlord, provided that such excess shall be credited and applied against Tenant's future
obligations arising under this Section 21.5 as the same become due and payable by Tenant hereunder, and that Tenant shall remain
liable for future deficiencies, as applicable. Notwithstanding any such reentry without termination, Landlord may at any time thereafter,
by written notice to Tenant, elect to terminate this Lease for Tenant's previous breach.

 

21.6 Cumulative
Remedies. Each right and remedy of Landlord provided for in this Lease shall be cumulative and in addition to every other right
or remedy provided for in this Lease or now or hereafter existing at law or in equity or by statute or otherwise; and the exercise
or beginning of the exercise by Landlord of any one or more of such rights or remedies shall not preclude the simultaneous or later
exercise by Landlord of any or all other rights or remedies provided for in this Lease now or hereafter existing at law or in equity
or by statute or otherwise.

 

21.7 Sublessee
Defaults. Any violation of any covenant or provision of this Lease, whether by act or omission, by any sublessee or any other
persons occupying any portion of the Premises under the rights of Tenant shall be deemed a violation of such provision by Tenant
and a default under this Lease. Any such violation shall not be deemed to be a default hereunder if and so long as Tenant in good
faith and at its own expense takes and diligently pursues any and all steps it is entitled to take and which steps if completed
will cure said default.

 

    	19

    	 

    

 

21.8 Repetitive
Rent Payment Defaults. NOTWITHSTANDING THE PROVISIONS OF PARAGRAPH 21.1 HEREOF TO THE CONTRARY, IF IN ANY ONE (1) PERIOD OF
TWELVE (12) CONSECUTIVE MONTHS, TENANTSHALL HAVE BEEN IN DEFAULT IN THE PAYMENT OF RENT HEREIN AT LEAST THREE (3) TIMES AND LANDLORD,
BECAUSE OF SUCH DEFAULTS, SHALL HAVE SERVED UPON TENANT WITHIN SUCH TWELVE (12) MONTH PERIOD THREE (3) OR MORE NOTICES OF LATE
PAYMENT, THEN THE FOURTH DEFAULT SHALL BE DEEMED TO BE A NON-CURABLE DEFAULT AND LANDLORD SHALL BE ENTITLED TO IMMEDIATE POSSESSION
OF THE PREMISES.

 

21.9 Cure
Period. Notwithstanding any other provision of this Section, Landlord and Tenant agree that if the default complained of, other
than for the payment of monies, is of such a nature that the same cannot be cured within the twenty (20) day period for curing
as specified in the written notice relating thereto, then such default shall be deemed to be cured by the other party within such
period of twenty (20) days if the other party shall have commenced thereof and shall continue thereafter with all due diligence
to effect such cure and does so complete the same with the use of such diligence as aforesaid.

 

21.10 Late
Charges. A late charge in the amount of ten percent (10%) of the delinquent payment shall be assessed to any payment required
to be made by Tenant to Landlord under the terms of this Lease not received by Landlord within three (3) days after its due date
(regardless of whether Tenant has been given notice of such failure of payment). If Tenant tenders to Landlord a check that is
returned marked "NSF" or its equivalent, Tenant shall pay Landlord a payment in the amount of twenty percent (20%) of
the amount of such non-negotiable check. Tenant's failure to pay any such late charge within three (3) days after Landlord's written
demand therefor shall constitute an Event of Default hereunder. In addition to the payments set forth in the preceding two sentences,
Tenant shall pay Landlord interest at the rate of eighteen percent (18%) per annum from the date any payment is due until the date
such payment is actually received by Landlord.

 

SECTION 22 - CONDEMNATION.

 

If title to all
or any portion of the Premises is taken by a public or quasi- public authority under any statute or by right of eminent domain
of any governmental body, whether such loss or damage results from condemnation of part or all of the Premises, Tenant shall not
be entitled to participate or receive any part of the damages or award except where the same shall provide for Tenant's moving
or other reimbursable expenses, the portion thereof allocated to the taking of Tenant's trade fixtures, equipment and personal
property or to a loss of business by Tenant. Should any power of eminent domain be exercised after Tenant is in possession, such
exercise shall not void or impair this Lease unless the amount of the Premises so taken substantially and materially impairs the
usefulness of the Premises for the purposes for which they are leased in which case, either party may cancel this Lease by notice
to the other within sixty (60) days after such possession. Should only a portion of the Premises be taken and the Premises continue
to be reasonably suitable for Tenant's use, the rent shall be reduced from the date of such possession in direct proportion to
the reduction in the square footage of the Premises. Notwithstanding the language of this Paragraph, Tenant shall be allowed to
separately litigate its damages for loss of its business as a result of any condemnation.

 

    	20

    	 

    

 

SECTION 23 - TENANT'S WAIVER OF STATUTORY RIGHTS.

 

In the
event of any termination of the Term (or any repossession of the Premises), Tenant so far as permitted by law, waives (i) any notice
of reentry or of the institution of legal proceedings to that end; and (ii) the benefits of any laws now or hereafter in force
exempting property from liability for rent or for debt.

 

SECTION 24 - WAIVER OF PERFORMANCE.

 

No failure
by Landlord or Tenant to insist upon the strict performance of any term or condition hereof or to exercise any right, power or
remedy consequent upon a breach thereof and no submission by Tenant or acceptance by Landlord of full or partial rent during the
continuance of any such breach shall constitute a waiver of any such breach or of any such term. No waiver of any breach shall
affect or alter this Lease (which shall continue in full force and effect), or the respective rights of Landlord or Tenant with
respect to any other then-existing or subsequent breach.

 

SECTION 25 - REMEDIES CUMULATIVE.

 

Each right, power
and remedy provided for in this Lease now or hereafter existing at law, in equity or otherwise shall be cumulative and concurrent
and shall be in addition to every other right, power or remedy provided for in this Lease now or hereafter existing at law, in
equity or otherwise; and the exercise or beginning of the exercise of any one or more of the rights, powers or remedies provided
for in this Lease shall not preclude the simultaneous or later exercise of any or all such other rights, powers or remedies.

 

SECTION 26 - CONVEYANCE BY LANDLORD.

 

In the event Landlord
or any successor Landlord shall convey or otherwise dispose of the Premises, it shall thereupon be released from all liabilities
and obligations imposed upon Landlord under this Lease (except those accruing prior to such conveyance or other disposition) and
such liabilities and obligations shall be binding solely on the then owner of the Premises.

 

SECTION 27 - NO PERSONAL LIABILITY TO LANDLORD.

 

Tenant shall
look solely to Landlord's interest in the Premises for the satisfaction of any judgment or decree requiring the payment of money
by Landlord based upon any default under this Lease, and no other property or assets of Landlord, or any partner or member of,
or shareholder in, Landlord, shall be subject to levy, execution or other enforcement procedures for satisfaction of any such judgment
or decree.

 

SECTION 28 - ATTORNEYS' FEES.

 

In
the event Landlord retains an attorney to enforce its rights under this Lease or to bring suit for possession of the
Premises, for the recovery of any sum due hereunder, or for any other relief against Tenant, declaratory or otherwise,
arising out of a breach of any term of this Lease, or in the event Tenant should bring any action for any relief against
Landlord, declaratory or otherwise, arising out of this Lease, the prevailing party shall be entitled to receive from the
other party reasonable attorneys' fees and reasonable costs and expenses, which shall be deemed to have accrued due to the
commencement of such action and shall be enforceable whether or not such action is prosecuted to judgment.

 

    	21

    	 

    

 

SECTION 29 - PROVISIONS SUBJECT TO APPLICABLE
LAW.

 

All rights, powers
and remedies provided herein shall be exercised only to the extent that the exercise thereof shall not violate any applicable law
and are intended to be limited to the extent necessary so that they shall not render this Lease invalid or unenforceable under
any applicable law. If any term of this Lease shall be held to be invalid, illegal or unenforceable, the validity of the other
terms of this Lease shall in no way be affected thereby.

 

SECTION 30 - RIGHT TO CURE TENANT'S DEFAULTS.

 

In the event Tenant
shall breach any term, covenant or provision of this Lease, Landlord may at any time, without notice, cure such breach for the
account and at the expense of Tenant. If Landlord at any time, by reason of such breach, is compelled to pay or elects to pay any
sum of money or to do any act that will require the payment of any sum of money, or is compelled to incur any expense, including
reasonable attorneys' fees, incurred in instituting, Prosecuting or defending any actions or proceedings to enforce Landlord's
rights under this Lease or otherwise, the sum or sums so paid by Landlord, with all interest, costs and damages, shall be deemed
to be Additional Charges and shall be paid by Tenant to Landlord on the first day of the month following the incurring of such
expenses of the payment of such sums and shall include interest at the rate of eighteen percent (18%) per annum from the date Landlord
makes a payment until Tenant pays such Additional Charges in full.

 

SECTION 31 - NOTICES.

 

Any notice to
be given by Landlord or Tenant shall be given exclusively in writing and delivered in person or by overnight mail service to Landlord
or Tenant, forwarded by certified or registered mail, postage prepaid, or sent via facsimile transmission, to the address indicated
in the Fundamental Lease Provisions, unless the party giving any such notice has been notified, in writing, of a change of address.
Any such notice shall be deemed effective (a) upon receipt or refusal to accept delivery, if personally delivered; (b) on the next
business day following delivery to the overnight courier; (c) in the case of certified mailing, on the date of actual delivery
as shown by the addressee's receipt or upon the expiration of three (3) business days following the date of mailing, whichever
occurs first; or (d) in the case of facsimile transmission, upon receipt (a written confirmation of successful transmission from
the transmitting facsimile machine being prima facie evidence of such receipt).

 

SECTION 32 - SIGNS.

 

Tenant shall not
place, alter, exhibit, inscribe, paint or affix any sign, awning, canopy, advertisement, notice or other lettering on any part
of the outside of the Premises, or of the building of which the Premises is a part, or inside the Premises if visible from the
outside, without first obtaining Landlord's written approval thereof, which shall not be unreasonably withheld, and if so approved,
Tenant shall maintain the same in good condition and repair.

 

    	22

    	 

    

 

SECTION 33 - LANDLORD'S INSPECTIONS.

 

33.1Inspection. Landlord reserves the
right to, at all reasonable times, by itself or by its duly authorized agents, employees and contractors, and without notice to
go upon and inspect the Premises and every part thereof, to enforce or carry out the provisions of this Lease, to make, at its
option, repairs, installations, alterations, improvements and additions to the Premises or the building of which the Premises
are a part, to perform any defaulted obligation of Tenant or for any other proper purposes. Landlord also reserves the right to
install or place upon or affix to the roof and exterior walls of the Premises: equipment, signs, displays, antennae and any other
object or structure of any kind, provided the same shall not interfere with Tenant's occupancy or materially impair the structural
integrity of the building of which the Premises are a part.

 

33.2 Presenting
for Sale or Lease. Landlord hereby reserves the right during usual business hours to enter the Premises and to show the same
for purposes of sale, lease or mortgage, and during the last six (6) months of the term of this Lease, or the extension thereof,
to exhibit the same to any prospective tenant, and to display appropriate signage for such sale or lease. Prospective purchasers
or tenants authorized by Landlord may inspect the Premises during reasonable hours at any time.

 

SECTION 34 - ESTOPPEL CERTIFICATE.

 

Tenant will execute,
acknowledge and deliver to Landlord, within ten (10) business days following a written request therefor, a certificate certifying
(a) that this Lease is unmodified and in full force (or, if there have been modifications, that the Lease is in full force and
effect, as modified, and stating the modifications);(b) the dates, if any, to which rent, Additional Charges and other sums payable
hereunder have been paid; (c) that no notice has been received by Tenant of any default which has not been cured, except as to
defaults specified in such certificate; and (d) this Lease is and shall be subordinate to any existing or future deed of trust,
mortgage or security agreement placed upon the Premises or the Project by the Landlord or owner of the Property. Any claim of
Tenant in contradiction of any of the foregoing matters must be set forth with specificity in the certificate. Any such certificate
may be relied upon by any prospective purchaser or encumbrancer of the Premises or any part thereof Tenant's failure to deliver such certificate within
the time permitted hereby shall be conclusive upon Tenant that this Lease is in full force and effect, except to the extent any
modification has been represented by Landlord, and there are no uncured defaults in Landlord's performance, and that not more
than one month's rent has been paid in advance. In addition, at Landlord's option, after notice to Tenant and expiration of applicable
grace period under this Lease, such failure of Tenant to deliver such certificate shall constitute an Event of Default. Tenant
acknowledges and agrees that the promise to issue such statements pursuant hereto are a material consideration inducing Landlord
to enter into this Lease and that the breach of such promise shall be deemed a material breach of this Lease.

 

SECTION 35 - WAIVER OF TRIAL BY JURY.

 

TENANT
HEREBY WAIVES ALL RIGHTS TO TRIAL BY JURY IN ANY CLAIM, ACTION, PROCEEDING OR COUNTERCLAIM BY EITHER LANDLORD OR TENANT
AGAINST EACH OTHER ON ANY MATTERS ARISING OUT OF OR IN ANY WAY CONNECTED WITH THIS LEASE, THE RELATIONSHIP OF LANDLORD AND
TENANT, AND/OR TENANT'S USE OR OCCUPANCY OF THE LEASED PREMISES. TENANT AGREES THAT EXCLUSIVE JURISDICTION FOR ALL LEGAL
ACTIONS SHALL BE COCONINO COUNTYSUPERIOR COURT.

 

    	23

    	 

    

 

SECTION 36 - RECORDING.

 

Neither
this Lease nor a memorandum thereof, may be recorded, or otherwise made public, by any means, without the express written consent
of Landlord. Any such recording or publication without such consent, shall, at Landlord's option, cause this Lease and all rights
of Tenant hereunder, to be immediately forfeited and of no further force and effect, provided, however, that Landlord shall have
the right to such action against Tenant, for damages resulting from such recording, as Landlord shall be entitled to by law.

 

SECTION 37 - SUBORDINATION.

 

This Lease
is hereby declared to be subject and subordinate to the lien of any present or future encumbrance or encumbrances upon the Premises
or the Project, irrespective of the time of execution or the time of recording of any such encumbrance or encumbrances. Landlord
shall use its good faith efforts to obtain for Tenant an attornment and non-disturbance agreement from any lender which has a lien
on the Premises. This subordination is subject to the right of Tenant upon a foreclosure or other action taken under any mortgage
by the holders thereof to have this Lease and the rights of Tenant hereunder not be disturbed but to continue in full force and
effect so long as Tenant shall not be in default hereunder. The word "encumbrance" as used herein includes mortgages,
deeds of trust or other similar instruments, and modifications, extensions, renewals and replacements thereof, and any and all
advances thereunder.

 

SECTION 38 - MISCELLANEOUS.

 

38.1 Definition
of Tenant. The Term "Tenant" shall include legal representatives, successors and permitted assigns. All covenants
herein shall be made binding upon Tenant and construed to be equally applicable to and binding upon its agents, employees and others
claiming the right to be in the Premises or in the building or in the building through, under or above Tenant.

 

38.2 Tenant.
If more than one individual, firm, or corporation shall join as Tenant, singular context shall be construed to be plural wherever
necessary and the covenants of Tenant shall be the joint and several obligations of each party signing as Tenant and when the parties
signing as Tenant are partners, it shall be the obligation of the firm and of the individual members thereof.

 

38.3 Gender
and Number. Whenever from the context it appears appropriate, each item stated in the singular shall include the plural and
vice versa and the masculine, feminine, or neuter form shall included the masculine, feminine and neuter forms.

 

38.4 Modifications
and Waivers. No change, modification, or waiver of any provision of this Lease shall be valid or binding unless it is in writing
dated after the date hereof and signed by the parties intended to be bound. No waiver of any breach, term, or condition of this
Lease by either party shall constitute a subsequent waiver of the same or any other breach, term, or condition.

 

    	24

    	 

    

 

38.5 Implied
Warranties. OTHER THAN AS SET FORTH IN THIS LEASE, TENANT AND LANDLORD EXPRESSLY AGREE THAT THERE ARE AND SHALL BE NO IMPLIED
WARRANTIES OF MERCHANTABILITY, HABITABILITY, FITNESS FOR A PARTICULAR PURPOSE OR ANY OTHER KIND ARISING OUT OF THIS LEASE, AND
THERE ARE NO WARRANTIES WHICH EXTEND BEYOND THOSE EXPRESSLY SET FORTH IN THIS LEASE.

 

38.6 Binding
Effect. This Lease shall be binding upon and shall inure to the benefit of the parties and their respective heirs, personal
representatives, successors and assigns. This provision shall not be deemed to grant Tenant any right to assign this Lease or sublet
the Premises or any part thereof other than as provided in this Lease.

 

38.7 Severability.
To the fullest extent possible each provision of this agreement shall be interpreted in such fashion as to be effective and valid
under applicable law. If any provision of this Lease is declared void or unenforceable with respect to particular circumstances,
such provision shall remain in full force and effect in all other circumstances. If any provision of this Lease is declared void
or unenforceable, such provision shall be deemed severed from this Lease, which shall otherwise remain in full force and effect.

 

38.8 Governing
Law and Jurisdiction. Except where preempted by the laws of the United States or the rules or regulations of any agency or
instrumentality thereof, this Lease is to be interpreted, construed and governed by the laws of the State of Arizona. The parties
irrevocably and unconditionally submit to the exclusive jurisdiction of the Superior Court of the State of Arizona for the County
of Coconino in connection with any legal action or proceeding arising out of or relating to this Lease and the parties waive any
objection relating to the basis for personal or in rem jurisdiction or to venue which it may now or hereafter have in any such
suit, action or proceeding.

 

38.9 Entire
Agreement. This instrument constitutes the sole and only agreement between Landlord and Tenant respecting the Premises, the
leasing of the Premises to the Tenant, or the Lease term herein specified, and correctly sets forth the obligations of the Landlord
and Tenant to each other as of its date. Any agreements or representations by the Landlord to the Tenant not expressly set forth
in this instrument are void and unenforceable. All prior agreements and understanding of the parties with respect to such subject
matter are hereby superseded. No representations, promises, agreements, or understandings contained in this Lease regarding the
subject matter hereof shall be of any force or effect unless in writing, executed by the party to be bound, and dated on or subsequent
to the date hereof. Captions and headings are for convenience only and shall not alter any provision or be used in the interpretation
of this Lease.

 

38.10 Time
is of the Essence. Time is of the essence of this Lease and each and every provision hereof Any extension of time granted for
the performance of any duty under this Lease shall not be considered an extension of time for the performance of any other duty
under this Lease.

 

    	25

    	 

    

 

38.11 Brokers.
Tenant represents and warrants that it has not entered into any agreement with, nor otherwise had any dealings with, any broker
or agent in connection or execution of this Lease which could form the basis of any claim by any such broker or agent for a brokerage
fee or commission, finder's fee, or any other compensation of any kind or nature in connection with this Leasehold.

 

    	 

    	 

    

  

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Amendment to Lease (Telephone Room)

 

    	 

    	 

    

 

List of Exhibits

 

 

A.Project Site Plan

B.Legal Description

 

 

    	1

    	 

    

 

FIRST AMENDMENT TO LEASE

 

This First Amendment
to Lease ("Amendment") is entered into this 1st day of February, 2011 by and between Canyon Portal II, L.L.C., an Arizona
limited liability company ("Landlord") and L'Auberge Orchards LLC, an Arizona limited liability company ("Tenant")
and is an Amendment to that Lease Agreement with a Commencement Date of April 1, 2010 ("Lease") at Canyon Portal in the
Trading Post Shops building in Sedona, Arizona.

 

RECITALS

 

		A.	Landlord and Tenant entered into a Lease (Lease) with a Commencement Date
of April 1, 2010 with respect to 174 square feet for housing of telecommunications equipment.

 

		B.	Landlord and Tenant desire to amend the Lease to extend the termination date
to December 31, 2017.

 

		C.	The terms used herein shall have the same meaning as
in the Lease.

 

IT IS AGREED AS FOLLOWS:

 

1.Minimum
Annual Base Rental. The minimum annual base rental for the period of March 1, 2011 to December 31, 2012 shall be Two Hundred
Sixty Eight Dollars and Eighty Three Cents ($268.83). Thereafter rent shall be adjusted each January 1 as described herein.

 

The base for computing
the adjustment is the Consumers' Price Index for All Urban Consumers, United States Cities Average published by the United States
Department of Labor, Bureau of Labor Statistics (the "Index"), which is in effect on the date of the commencement of
the first day of the previous Lease year ("Beginning Index"). For example, the adjustment for year two would be based
on the Index for the first day of Lease year one. The Index published most immediately preceding the Adjustment Date in question
("Extension Index") is to be used in determining the amount of the adjustment. If the Extension Index has increased over
the Beginning Index, the base monthly rent for the following year shall be set by multiplying the base monthly rent for the previous
year, e.g., for the 12th Lease month, by a fraction, the numerator of which is the Extension Index and the denominator
of which is the Beginning Index. However, the adjustment to the rent shall be no less than three percent (3%) compounded per annum
of the base monthly rent provided in this Lease. As an example, if year one monthly rent is $1,000.00 and the three percent (3%)
is applicable each year, then monthly rent for years two through five would be: year two - $1,030.00; year three - $1,060.90; year
four - $1,092.73; and year five $1,125.51.

 

If the Index is changed
so that the base year differs from that in effect when the Term commences, the Index shall be converted in accordance with the
conversion factor published by the United States Department of Labor, Bureau of Labor Statistics. If the Index is discontinued
or revised during the Term, such other government index or computation with which it is replaced shall be used in order to obtain
substantially the same result as would be obtained if the Index had not been discontinued or revised.

 

    	1

    	 

    

 

C.Monthly rent
for the first month shall be paid on the date the Term commences. Monthly rent for any partial month shall be prorated at the rate
of one-thirtieth (1/30) of the monthly rent per day.

 

D.All rental amounts
are "net" rent to Landlord. All Additional Charges (as described in this Lease) shall be deemed rent whether or not expressly
designated as such, and shall be paid in addition to the Minimum Annual Base Rental at the times and in the manner provided for
in this Lease.

pursuant to Section 5.1(B) in the Lease and as modified
in the First Amendment.

 

2.Full Force
and Effect. Except as modified by this Amendment, the Lease and each of its terms and conditions remains in full force and
effect.

 

 

 

 

    	2

    	 

    

 

LEASE

  

SECTION 1 - FUNDAMENTAL LEASE PROVISIONS.

 

	Landlord:	Canyon Portal II, LLC
	 	L'Auberge Orchards LLC
	Tenant:	 	 
	Trade Name:  	 	 
	Lease Term:	Commencement Date:   	April 1, 2010
	 	 	 
	 	Termination Date:	March 1, 2011
	 	 	 
	Premises:	174 square feet as further depicted on the attached Exhibit A.
	 	 
	Minimum Rent:	Minimum Rent for the period April 1, 2010 through March 31, 2011 shall be Two Hundred Sixty One Dollars ($261.00). Pursuant to Paragraph 5.1 of the Lease attached as Exhibit B, Rent is due and payable in advance on or before the first day of each month and subject to adjustment as forth in Section 5.1 of the Lease.
	 	 	 
	Address of Landlord:  	Canyon Portal II, L.L.C.

6900 E. Scottsdale Road, #830

Scottsdale, AZ 85251

Telephone: (480) 941-0221

Fax:(480) 990-9093 

	 	 	 
	Address of Tenant:	L'Auberge Orchards LLC 
 6900 E. Scottsdale Road, #830 
 Scottsdale, AZ 85251 
 Telephone: (480) 941-0221 
 Fax:(480) 990-9093

 

The foregoing
Fundamental Lease Provisions are an integral part of this Lease, and each reference in the body of the Lease to any Fundamental
Lease Provision shall be construed to incorporate all of the terms set forth above with respect to such Provisions.

 

    	 

    	 

    

 

SECTION 2 - LEASE. 

 

This terms
and conditions of this Lease shall be identical to the Lease between Nicrin, Inc. and Landlord, which is attached hereto as Exhibit
B. All terms and conditions shall be the same.

 

	
        LANDLORD:

         

        CANYON PORTAL II, L.L.C., an

        Arizona limited liability company  
	
        TENANT:

         

        L'AUBERGE ORCHARDS, LLC, an

        Arizona limited liability company

	 	 
		

  

    	 

    	 

    

 

 

 

 

    	 

    	 

    

 

SECOND ADDENDUM TO LEASE

 

This Second Addendum to Lease ("Addendum")
is entered into thisday ofNovember, 1999 between NICRIN, INC., an Arizona Corporation ("Tenant") and CANYON PORTAL,
L.L.C., an Arizona limited liability company ("Landlord") and amends that Lease dated October 1, 1987 and subsequently
modified and amended on September 10, 1988; December 4, 1988; March 4, 1989; August 6, 1991; October 1, 1991; June 30, 1997; and
September 25, 1998 ("Lease"). A full copy of the Lease, as amended, is attached hereto as Exhibit A.

 

THE PARTIES AGREE AS FOLLOWS:

 

		1.	Second Additional Space. Tenant will lease that space which is an approximately 60-foot
wall area in the restaurant at the North Retail Building. The space is reflected on the attached Exhibit B.

 

		2.	Term. The term of the Second Additional Space shall extend through September 30, 2006.

 

		3.	Rent. The basic rent per month for the Second Additional Space shall be as follows.

 

		a.	Date of Occupancy to December 31, 2000 - $4,100 per month

 

		b.	January 1, 2001 to December 31, 2001 -$4,500 per
month

		 	 

		c.	January 1, 2002 to December 31, 2002 -$5,000 per
month

		 	 

		d.	January 1, 2003 to December 31, 2003 -$5,500 per
month

 

		e.	The rental increases for calendar years 2004, 2005 and the period through September 30, 2006
shall be adjusted pursuant to the Annual Rent Increase provisions set forth in Paragraph 3.2 of the Lease Extension Agreement dated
September 25, 1998.

 

		4.	Second Security Deposit. Tenant, upon signing this Addendum, shall deposit with Landlord
a second Security Deposit in the amount of Four Thousand One Hundred Dollars ($4,100.00).

 

    	 

    	 

    

 

		5.	Occupancy. Rent for the Second Additional Space shall commence on or before April 1,
2000. If for any reason occupancy of the Second Additional Space is not available by April 1, 2000, rent for the Second Additional
Space shall be pro-rated (in arrears) for the month of April, 2000 and shall commence upon the delivery to Landlord of a copy of
the Certificate of Occupancy from the City of Sedona for the food court.

 

		6.	Option Periods. Tenant is granted two (2) five-year options. The terms and conditions
of the options shall be governed by Section 3 of the Lease Extension Agreement dated September 25, 1998. Tenant has the right to
exercise the options for either or both of (1) Suite 1 and Suite 7 of the Trading Post Shops and (ii) the Second Additional Space.

 

		7.	Lease Transfer Fee. Section 1.4 of the Lease Extension Agreement dated September 25,
1998 is deleted in its entirety and is replaced by the following.

 

		a.	1.4. Lease Transfer.

 

A.Tenant shall pay
to Landlord a Lease Transfer Fee (as defined in Section 1.4(B) below) upon the occurrence of any of the following
events: (i) Tenant sells, transfers or assigns (directly, by operation of law or otherwise) its interest in the Lease or in
the business being conducted at the Premises to any other person or legal entity; (ii) a sale, transfer or assignment
(directly, by operation of law or otherwise) of all or any portion of the ownership of stock or ownership interest in the
present Tenant entity or any successor entity including but not limited to any sale, transfer or assignment by merger,
recapitalization, reorganization, or restructure; or (iii) Tenant enters into a sublease, license, use or occupancy agreement
with any other person or entity for the leased Premises (items in sub-paragraphs I, ii, and iii are collectively referred to
as a "Transfer"). This Lease Transfer Fee is specifically negotiated to compensate Landlord for a Transfer of
Premises that Tenant acknowledges is in short supply in Uptown Sedona, Arizona. Should Tenant, for any reason, reacquire the
leased premises after any sale, sublease or transfer, there will be no "transfer fee" to Tenant upon the
reacquisition of the Premises. However, any subsequent action by Tenant that meets the requirements of items (i), (ii), or
(iii) above, shall subject Tenant to a new Transfer Fee. The offer of Landlord to enter into this Lease is
specifically contingent upon Tenant agreeing to pay the Lease Transfer Fee. Any failure of Tenant to pay a Lease Transfer Fee
entitles Landlord immediately, and without notice, to terminate this Lease. The Lease Transfer Fee is not in substitution of
other provisions of this Lease concerning assignment and subletting, which are in full force and effect.

 

    	2

    	 

    

 

B.A Lease Transfer Fee shall
be paid by Tenant to Landlord in cash upon the date of the Transfer in an amount of Ten Thousand Dollars ($10,000.00) with such
amount to be increase by a CPI adjustment calculated with the actual CPI.

 

C.As a condition of approval
of the Transfer, Landlord shall enter into a Lease amendment with the assignee increasing the Minimum Annual Base Rental to the
then-market rental for the Premises, as reasonably determined by Landlord and taking into account the additional amounts received
by Landlord and tenants for rent, key fees, lease assignments or sales of business.

 

D.Landlord shall be entitled
to review in detail the retail experience, the intended use on the Premises, financial capability and tourist marketing experience
of any assignee to determine if such proposed assignee is suitable as a tenant in the Project. Tenant acknowledges that Landlord
has no obligation to consent to Transfers and that Landlord, after a review of proposed assignee, may reasonably reject such assignee
as not suitable for the Project.

 

E.Tenant acknowledges that
(i) the Lease Transfer Fee is a serious impediment to the Transfer of this Lease or the sale of Tenant's business; (ii) Landlord
has entered into this Lease after carefully choosing Tenant from a number of applicants to lease the Premises; and (iii) Landlord
does not want and will not allow Tenant to Transfer this Lease or sell its business unless the Lease Transfer Fee provisions are
complied with in full. Key Fees for the transfer of leases in the North Retail Building are not approved by Landlord. It is understood
that Tenant is not paying a Key Fee in order to occupy the Second Additional Space and when and if it sells the business or assigns
its Lease, it will not collect a Key Fee from the new business owner. Notwithstanding the prior sentence, it is the intent of the
Landlord and Tenant that subject to the provisions of this Lease, Tenant shall retain the monies to be paid as a result of the
sale of the business (as contrasted with the sale or assignment of a below market lease).

 

		8.	Approval of Plans and Payment of Construction. Tenant shall prepare a plan which reflects
how it will utilize the Second Additional Space. The plan must be approved by Landlord prior to commencement of any construction.
Tenant acknowledges that coordination of its plan with that for the restaurant at the North Retail Building is
a condition imposed by Landlord for entering into this Lease. Tenant shall pay for all costs of its interior improvements.

 

    	3

    	 

    

 

		9.	Full Force and Effect Except as modified by this Addendum, the Lease, as previously amended
and modified, remains in full force and effect.

 

	
        LANDLORD:

         

        CANYON PORTAL, L.L.C., an Arizona

        limited liability company
        By:

        CANYON PORTAL PROPERTIES, INC.

        its: Managing Member
	
        TENANT:

         

        NICRIN, INC., an Arizona corporation

	 	 
	
        By: Tom R. Van Sickle

        Its: President
	
        By: Lee Athenour

        Its: President

 

    	4

    	 

    

 

LEASE ADDENDUM

 

This Lease
Addendum ("Addendum") is entered into between NICRIN, INC., an Arizona Corporation and CANYON PORTAL, L.L.C., an Arizona
Limited Liability Company, on September 25, 1998 and amends that Lease, as previously amended June 30, 1997 and now in full force
and effect with respect to Suite 1, Trading Post Shops and adds to that Lease; Suite 7 in the Trading Post Addition.

 

THE PARTIES AGREE AS FOLLOWS:

 

1.Additional
Space. Suite 1 contains approximately 531.70 square feet. Suite 7 contains approximately 600.00 square feet.

 

2.Rent.
The basic rent per month shall be as follows:

 

	 	 	ORIGINAL RENT	 	 	ADDED 
 RENT	 	 	TOTAL RENT	 
	Date of Occupancy - September 30, 1998	 	$	2,259.73	 	 	$	1,950.00	 	 	$	4,209.73	 
	October 1, 1998-September 30,1999	 	$	2,392.65	 	 	$	2,100.00	 	 	$	4,492.65	 
	October 1, 1999 -September 30, 2000	 	$	2,525.58	 	 	$	2,250.00	 	 	$	4,775.58	 
	October 1, 2000 - September 30, 2001	 	$	2,658.50	 	 	$	2,400.00	 	 	$	5,058.50	 

 

The rental increases thereafter
shall be adjusted pursuant to Paragraph 3 of the Lease Extension Agreement dated June 30, 1997,

 

3.Increased
Security Deposit. Tenant shall on the signing of this document increase its security deposit from $ 2,658.50 to $ 5,058.50.

 

4.Key
Fee Agreement. Simultaneous with this Addendum, the Landlord and Tenant shall sign a Key Fee Agreement in the form attached
hereto as Exhibit A.

 

5.Occupancy.
Rent for the added space shall commence October 1, 1998. If for any reason, occupancy of the added space is not available on October
1, 1998, rent for the added space shall be pro-rated, (in arrears), for the month of October and shall commence seven (7) days
following the delivery of a Copy of a Certificate of Occupancy from the City of Sedona to the Tenant by the Landlord.

 

    	 

    	 

    

 

6.Full
Force and Effect, Except as modified by this Addendum and the June 30, 1997 "Lease
Extension Agreement", the Lease remains in full force and effect.

 

	LANDLORD:	TENANT:
	CANYON PORTAL, L.L.C.	
		By:CANYON PORTAL PROPERTIES, INC. 

Its: Managing Member	 
	
        By:Tom B. Van Sickle, President

        Its: President

        September 25,1998

         

         
	 	 

 

 

 

 

 

 

    	 

    	 

    

 

	LEANADI.DOC	2

 

    	 

    	 

    

 

"EXHIBIT A"

  

KEY FEE AGREEMENT

 

This
AGREEMENT made September 25, 1998 between CANYON PORTAL, L.L.C., an Arizona Limited Liability Company, 280 North Highway 89A, Sedona,
Arizona 86336 ("Landlord") and Nicrin, Inc., an Arizona Corporation, Suite 1, 270 North Highway 89A, Sedona, Arizona
86336 ("Tenant").

  

RECITALS

 

		A.	Tenant has requested a lease of approximately 600 square feet of space in the Trading Post
Addition from Landlord.

 

		B.	Because of the large demand for rental space in the Trading Post Addition, Landlord is willing
to lease to Tenant only upon payment of a Key Fee as provided herein.

  

NOW, THEREFORE, the parties agree:

 

1.Build
Out Fee.Tenant shall pay Landlord the sum of $50.00 per square foot for the premises in the Trading Post Addition leased by Landlord to Tenant pursuant to that written Lease Addendum of even
date herewith for a total of $30,000.00. The payment of the Key Fees is in consideration for the execution of the lease according
to its terms and shall not be allocated to any rental or deposit due under the lease.

 

2.Payment.Tenant
shall pay the Key Fee without interest on the following schedule:

  

Upon the Presentation of a Certificate of Occupancy
from the City of Sedona100%

 

    	 

    	 

    

 

3.Occupancy. Payment
of the Key Fee in full shall entitle Tenant to enter into possession of the premises pursuant to the Lease Addendum between Landlord
and Tenant of even date herewith.

 

4.Default.The
Key Fee to be paid by Tenant shall be nonrefundable. Nothing contained in this Paragraph shall limit Landlord's other remedies for Tenant's default contained in the lease between Landlord
and Tenant.

 

5.Landlord's Default.
If Landlord is unable to deliver the premises to Tenant for any reason, Tenant's sole remedy shall be limited to the refund
of all sums paid pursuant hereto and all deposits and advance payments made under the lease.

 

 

    	 

    	 

    

 

"Exhibit B"

 

LEASE EXTENSION AGREEMENT

 

This Lease
Extension Agreement (Extension) is entered into this 25th day of September, 1998 by and between CANYON PORTAL PROPERTIES, L.L.C.,
an Arizona Limited Liability Company ("Canyon Portal" or "Landlord") and NICRIN, Inc., ("Tenant").
The Lease as extended on June 30, 1997 and further amended by a Lease Addendum of even date herewith remains in full force and
effect except as modified in this Lease Extension Agreement.

 

RECITALS: 

 

1.Sedona
Uptown Properties, an Arizona limited partnership, predecessor in interest to Canyon Portal Properties, Inc., and Russell and Renee
Flaherty, entered into a Shopping Center Lease Agreement ("Lease") dated October 1, 1987, as Landlord and Tenant respectively.
On December 4, 1988, Tenant assigned its rights and obligations to Helena Sigman, which assignment was approved by the Landlord.
On January 1, 1989 Canyon Portal Properties, Inc. assumed all of the rights and obligations of Sedona Uptown Properties. On September
21, 1989, Landlord and Tenant entered into an Addendum to Lease by which "The term of the Lease shall be to end on September
30, 1991 ." On August 6, 1991, Helena Sigma assigned the Lease to Cindy Hoekema, which assignment was approved by the Landlord.
On October 1, 1991, Landlord and Tenant entered into a Modification Agreement which extended the term of the lease five years.
The Lease covers the Premises known as Suite 1, Trading Post Shops, Sedona, Arizona consisting of approximately 531.70 square feet
of gross floor area. The Lease term commenced October 1, 1987, and ended September 30, 1996. On January 1, 1997, Canyon Portal,
L.L.C., assumed all of the rights and obligations of Canyon Portal Properties, Inc. and Canyon Portal Properties, Inc. became the
Managing Member of Canyon Portal, L.L.C. On June 30, 1997, Tenant assigned its interest in the Leasehold Premises to Nicrin, Inc.,
which Assignment Landlord Approved and further extended the Lease until September 30, 2006 subject to the requirements stated therein
(Landlord Approval and Lease Extension). On September 9, 1998 Landlord and Tenant entered into a Lease Addendum which added Suite
7 in the Trading Post Addition to the leased premises.

 

2.Tenant
has given notice to Landlord that it wishes to extend its Lease of the premises with Landlord for an additional period of ten (10)
years beyond September 30, 2006.

 

3.Landlord
has agreed to offer to the Tenant two 5 (five) year options at the end of the current Lease period subject to the replacement of
paragraph 2 on page 2 of the previously agreed on Landlord Approval and Lease Extension entered into by the parties on June 30,
1997 with a new "SECTION 1 - ASSIGNMENT AND SUBLETTING" that will govern all future assignment and subletting of the
premises by the Tenant.

  

leasatlA.doe

 

    	 

    	 

    

 

NOW THEREFORE. THE PARTIES AGREE AS FOLLOWS:

SECTION 1- ASSIGNMENT AND SUBLETTING. 

 

1.1Landlord
ConsentTenant shall not transfer or assign this Lease or any interest in this Lease or sublet the Premises or any
portion thereof without first obtaining the written consent of Landlord; and any attempted transfer, assignment or subletting,
including any involuntary transfers or assignments by operation of law, without such consent shall be void and confer no rights
upon any third person, and at the option of Landlord, shall cause a termination of this Lease, in which event such third person
shall occupy the Premises as a tenant at sufferance. The acceptance of any rent payments by Landlord from any such alleged assignee
shall not constitute approval of the assignment or subletting of this Lease by Landlord. No transfer, assignment or subletting
shall relieve Tenant of its liability for the fill performance of all of the terms, agreements, covenants and conditions of this
Lease. A consent by Landlord to one transfer, assignment or subletting shall not operate as a waiver of this Section as to any
future transfer, assignment or subletting, and this Section 1., and Sections 2. and 3., below shall apply to any transferee, assignee
or subtenant.

 

1.2In Writing.Each
transfer, assignment, and subletting to which there has been consent shall be by an instrument in writing in form satisfactory
to Landlord, and shall be executed by the transferor, assignor or sublessor; and the transferee, assignee, or sublessee shall
agree in writing for the benefit of Landlord to assume, to be bound by, and to perform the terms, covenants and conditions of
this Lease to be done, kept and performed by Tenant. One executed copy of such written instrument shall be delivered to Landlord.
A consent to any transfer, assignment or subletting shall not constitute waiver or discharge of the provisions of this paragraph
with respect to a subsequent transfer, assignment or subletting. The acceptance of rent from any other person shall not be deemed
to be a waiver of any of the provisions of this Lease or a consent to the transfer, assignment or subletting of the Premises.

 

1.3Transfer
Limitation.If Tenant (including any entity later becoming Tenant) is a corporation, unincorporated association,
limited liability company or a partnership, the transfer, assignment or hypothecation of any stock or interest in such
corporation, association, company or partnership in the aggregate in excess of twenty percent (20%) from the time such entity
becomes a Tenant hereunder, shall be deemed an assignment within the meaning and provisions of this Section 1. The foregoing
sentence shall not apply to (1) a corporation of which the capital stock is publicly traded on a recognized national stock
exchange, (ii) a transfer pursuant to the laws of devise and descent upon the death of a shareholder, partner or owner or
(iii) the transfer by a shareholder, partner or owner to family members or to a trust for the benefit of family
members.

 

	lomat A.doe	2

 

    	 

    	 

    

 

1.4Lease Transfer Fee. 

 

A.Tenant
shall pay to Landlord a Lease Transfer Fee (as defined below) upon the occurrence of any of the following events: (i) Tenant sells,
transfers or assigns (directly, by operation of law or otherwise) its interest in the business being conducted at the premises
to any other person or legal entity; (ii) A sale, transfer or assignment (directly, by operation of law or otherwise) of all or
any portion of the ownership of stock or ownership interest in the present Tenant entity or any successor entity including but
not limited to any sale, transfer or assignment by merger, recapitalization, reorganization, or restructure; or (iii) Tenant enters
into a sub-lease, license, use or occupancy agreement with any other person or entity for the leased premises (items in sub-paragraphs
i, ii, and iii are collectively referred to as
a "Transfix."). This Lease Transfer Fee is specifically negotiated to compensate Landlord for a transfer of
Premises that Tenant acknowledges is in short supply in Uptown Sedona, Arizona. Should Tenant, for any reason, reacquire the leased
premises after any sale, sub-lease or transfer; there will be no "transfer fee" to Tenant upon the reacquisition of the
premises. However, any subsequent action by Tenant that meets the requirements of items (1), (ii), or (iii) above, shall subject
Tenant to a new transfer fee. The Offer of Landlord to enter into this Extension is specifically contingent upon Tenant agreeing
to pay the Lease Transfer Fee. Any failure of Tenant to pay a Lease Transfer Fee will entitle Landlord immediately, and without
notice, to terminate the Lease, as modified by the Lease Extension Agreement. The Lease Transfer Fee is not in substitution of
other provisions of the Lease concerning assignment and subletting, which are in full force and effect.

 

B.A
Lease Transfer Fee shall be paid by Tenant to Landlord in cash upon the date of the Transfer in an amount equal to the greater
of () an amount equal to all Rent of every kind (including but not limited to monthly rent, additional charges, key fees, and common
area charges) paid by Tenant to Landlord in the 12 months prior to the Transfer; or (ii) forty percent (40%) of all moneys to be
paid by any purchaser to Tenant for any purpose including but not limited to the Lease Transfer, purchase of inventory, consulting
fees payable to Tenant or any affiliate of Tenant or the like.

 

C.As
a condition of approval of the Assignment, Landlord shall enter into a Lease amendment with the assignee increasing the Base Monthly
Rent to the then market rental for the Premises, as reasonably determined by Landlord and taking into account the additional amounts
received by Landlord and Tenants for rent, key fees, lease assignments or sales of business.

 

D.Landlord
shall be entitled to review in detail the retail experience, the intended use on the Premises, financial capability and tourist
marketing experience of any assignee to determine if such proposed assignee is suitable as a tenant in the Project. Tenant acknowledges
Landlord has no obligation to consent to assignments and that Landlord, after a review of proposed assignee, may reject such assignee
as not suitable for the Project.

 

	leasetilAdoc	3

 

    	 

    	 

    

 

E.Tenant acknowledges
(1) the Lease Transfer Fee is a serious impediment to the assignment of this Lease or the sale of Tenant's business; (ii) Landlord
has entered into this Lease after carefully choosing Tenant from a number of applicants to lease the Premises; and (iii) Landlord
does not want and will not allow Tenant to assign this Lease or sell its business unless the Lease Transfer Fee provisions above
are complied with in full.

 

SECTION 2 - SUBJECT TO MASTER LEASE

 

Tenant acknowledges
that this Lease is subordinate to a Master Lease of the Project among CARLA LEPORI CONIGLIO, Trustee of the CARLA LEPORI CONIGLIO
LIVING TRUST and Trustee of the MARIANA PACINI TRUST, as amended, dated January 28, 1983, CARLA LEPORI CONIGLIO, ROBERT A. ?ACM,
DORIS GREENE, DORIS PACINI GREENE, Trustee of the DORIS PACINI GREENE REVOCABLE LIVING TRUST, dated August 17, 1994, CARA M. CONIGLIO,
LISA P. KAUFMANN, PHILIP M. CONIGLIO, Jr., and ATHERTON VENTURES, a California general partnership, as Landlord, and CANYON PORTAL,
L.L.C., an Arizona limited liability company as Tenant. The Master Lease is recorded in Coconino County at Docket 1362, Page 162.

 

SECTION 3 - OPTION RENEWAL TERMS

 

3.1Two
Five (5) Year Option. The first Option provided by this Extension of the Lease shall be for a five (5) year period
commencing October 1, 2006 and ending September 30, 2011. The second Option provided by this Extension of the Lease shall be for
a five (5) year period commencing October 1, 2011 and ending September 30, 2016.

 

3.2Market
Rental Rate. At the commencement of each five (5) year Option period, the Annual Rent shall be increased to the then "Market
Rate" for similar space in "Uptown Sedona", but in no case shall the new "Market Rate" be less than 105%
of the previous years' rental.

 

3.2Annual
Rent Increases. Commencing with the second year of EACH Option Term, and for each year thereafter, monthly rent for the
premises shall be increased based upon a cost of living adjustment calculated in the following manner. The base for computing
the adjustment is the Consumers' Price Index for All Urban Consumers, United States Cities Average published by the United
States Department of Labor, Bureau of Labor Statistics ("Index"), which is in effect on the date of the
commencement of the first day of the previous Lease year ("Beginning Index"). For example, the adjustment for year
two would be based on the Index for the first day of Lease year one. The Index published most immediately preceding the
Adjustment Date in question ("Extension Index") is to be used in determining the amount of the adjustment. If the
Extension Index has increased over the Beginning Index, the base monthly rent for the following year shall be set by
multiplying the base monthly rent for the previous year, e.g., for the 12th Lease month, by a fraction, the numerator of
which is the Extension Index and the denominator of which is the Beginning Index. However, the adjustment to the rent shall
be no less than five percent (5%) compounded per annum of the base monthly rent provided in this Lease. As an example, if
year one monthly rent is $1,000.00 and the five percent (5%) is applicable each year, then monthly rent for years two through
five would be: year two $1,050.00; year three - $1,102.50; year four - $1,157.63 and year five - $1,215.51. In any event, the
cost of living adjustment calculated in accordance with the foregoing formula shall not be less than 5% of the prior year's
rent rate.

 

	insextixdoil	4

 

    	 

    	 

    

 

If the Index
is changed so that the base year differs from that in effect when the term commences, the Index shall be converted in accordance
with the conversion factor published by the United States Department of Labor, Bureau of Labor Statistics. If the Index is discontinued
or revised during the term, such other government index or computation with which it is replaced shall be used in order to obtain
substantially the same result as would be obtained if the Index had not been discontinued or revised.

 

4. Increased Security Deposit Tenant
shall increase its Security Deposit at the beginning of Each Option Period to an amount that is equal to the ending monthly rental
rate for the previous rental period.

 

Except as modified above, the Lease remains in
full force and effect.

 

 

    	 

    	 

    

 

ESTOPPEL CERTIFICATE

 

RE: The ("Lease")
dated October 1, 1987, addendum dated September 2/, 1989, modification agreement dated October 1, 1991, lease extension dated
June 30, 1997 and lease extension agreement dated September 25, 1998 between ("Lessee/Tenant") Russell and Renee
Flaherty, which was assigned to NICRIN, INC., an Arizona corporation and ("Lessor/Landlord")Sedona
Uptown Properties, which was assigned to CANYON PORTAL,_ L.L.C., an Arizona limited liability co. Approximate square footage
occupied suite 1, 531.70, suite 7, 600 Commonly known as :Suite 1 & 7 of Canyon Portal, Sedona, Arizona the ("Leased
Premises").

 

The undersigned, hereby understand and
acknowledge to and for the benefit of OWENS FINANCIAL GROUP, INC,, a California Corporation ("Lender"), which
has made or is about to make a loan ("Loan") to Lessor/Landlord, part of the security for which will be a deed of trust
("Deed of Trust") covering the Leased Premises, and an Assignment of Rents and Leases, the truth and accuracy of the
following:

 

1. Attached hereto is a
complete, true and correct copy of the Lease, and except as identified in writing to Lender and attached hereto together with the
Lease, there are no modifications, amendments, supplements or understandings, oral or written, amending, supplementing or changing
the terms of the Lease.

 

2.Lessee/Tenant has
accepted and is in possession of the Leased Premises, and the Lease is in full force and effect, having been duly executed
and delivered by Lessee/Tenant, and is a valid and binding obligation of Lessee/Tenant and Lessor/Landlord. The term of the Lease

commenced on  10/1/87and will terminate
on  9/30/06 .

 

3.Current
base monthly rent under the Lease is $4,492.15, which has been paid through and including August 31, 1999. Lessee/Tenant has not
paid rent for more than one (1) Month after the month during which this certificate is executed. Lessee/Tenant has made
no advancements for or on behalf of Lessor/Landlord and there are no offsets, deductions or credits against the
payment of rents or other charges due under the Lease, or claims or causes of action against Lessor/Landlord. There are
no defenses against the enforcement of the Lease by Lessor/Landlord and there is no default under the Lease. Both
parties have performed the obligations required to be performed by each party thereunder through the date hereof. There
are not. any existing conditions which upon giving notice or lapse of time or both would constitute a default under
the Lease, and Lessor/Landlord has satisfactorily complied with all requirements to the commencement of the term of
the Lease.

 

4.No
monetary consideration has been granted to Lessee/Tenant for entering into the Lease except as otherwise specifically set
forth therein. Lessee/Tenant has made no agreements or arrangements with Lessor/Landlord which directly or indirectly
reduce or delay any of the rental payments or Obligations of Lessee/Tenant; and there are no liabilities or obligations of
Lessor/Landlord or any other person which Lessee/Tenant could offset against or otherwise use to reduce the rental payments
of Lessee/Tenant.

 

    	 

    	 

    

 

5.Any and all improvements required
by the Lease have been completed by Lessor/Landlord substantially in accordance with plans and specifications approved by Lessor/Landlord
and Lessee/Tenant.

 

6.Lessee/Tenant has paid
Lessor a security deposit and/or last months rent under the Lease in the amount of $5,058.50. No other deposits have been
made.

 

7.Lessee/Tenant has not entered
into any sublease, assignment or other agreement transferring any of its interest in the Lease or the Leased Premises.

 

8.Lessor/Landlord
and Lessee/Tenant agree that the Lease shall not be modified, amended, terminated or otherwise changed or altered and Lessee/ Tenant
shall not directly or indirectly sublease the Leased Premises or assign any right, title or interest of Lessee/Tenant thereunder,
whether for security or otherwise, without the prior written consent of Lender.

 

9.Until further written notice
from Lender, payments may continue as set forth in the Lease.

 

10.Lessor/Landlord
has not made, and Lessee/Tenant has no knowledge of, any prior assignment, hypothecation or pledge of the rents or the Lease
to any other party.

 

11.Lessee/Tenant has 2 options
to renew the Lease, for a period of  5  years each. Lessee/Tenant has no right of first offer or right of first refusal
to lease or occupy any other space within the Leased Premises, except as set forth in the Lease. Lessee/Tenant has no right to
renew or extend the Lease except as expressly set forth in the Lease.

 

12.There has not been filed
by or against Lessee/Tenant a petition in bankruptcy, voluntary or otherwise, any assignment for the benefit of creditors,
any petition seeking reorganization or arrangement under the bankruptcy laws of the United states, or any state thereof, or any
other

action brought under said bankruptcy laws with
respect to Lessee/Tenant.

 

13.All insurance required
of Lessee/Tenant by the Lease has been provided by Lessee/Tenant and all premiums paid.

 

14.The Deed of Trust or other
security instrument securing the Loan to Lender, and any renewal, extension or modification thereof, shall remain at all times
a lien on both the real property and improvements, of which the Leased Premises constitutes a part.

 

15.In the event of a
Trustee's Sale or any action to enforce the terms of the Note and Deed of Trust, Lessee/Tenant shall attorn to the Purchaser
upon such a foreclosure or sale or upon any grant of a deed in lieu of foreclosure and shall recognize such purchaser as the
Lessor/Landlord under the Lease, provided, however, that in any of the above-described events, Lender, or any purchaser or
any successor owner of the property shall not be (i) liable for any act or omission of the prior landlord (including Lessor),
(ii) subject to any offsets or defenses which Lessee/Tenant might have against a prior landlord (including Lessor); (iii)
bound by any rent or additional rent which Tenant might have paid in advance for more than one (1) month to any prior
landlord (including Lessor); or (iv) bound by any agreement or modification of the Lease made without the written
consent of Lender.

 

    	I)

    	 

    

 

16. Lessee/Tenant has no actual
or constructive knowledge of the presence of, or any processing, use, storage, disposal, release or treatment of any hazardous
or toxic materials or substances on or beneath or from the Leased Premises or the Property of which it is a part, except as follows
(if none, state "none"): NONE 

 

 

17.Lessee/Tenant has not been served
with any notice concerning, nor does Lessee know of, any violation of or non-compliance with any laws, ordinances, requirements,
orders, rules or regulations of any governmental or quasi- governmental body or board of insurance underwriters with respect to
the Leased Premises or the use or occupancy thereof by the Lessee/Tenant. The Leased Premises are in good condition
and repair.

 

18.Notwithstanding
any provision in the Lease, in the event of a default by Lessor/Landlord of his obligations under the Lease, Lessee/Tenant

shall give written notice of such breach and/or default
to Lender at the following address:

 

OWENS FINANCIAL GROUP, INC.

2221 OLYMPIC BLVD. (P. O. BOX 2308)

WALNUT CRUX, CA 94595

 

Lessee/Tenant shall allow Lender 30 days to cure
such breach and/or default, although Lender has no obligation to do so.

 

19.This Agreement may
be relied upon by Lender in connection with its making of the Loan to Lessor/Landlord.

 

 

    	9

    	 

    

 

ASSIGNMENT OF CANYON PORTAL SHOPS LEASE

AND CONSENT OF LANDLORD

 

RECITALS:

 

WHEREAS,
Assignor, Cyndee Hoekema, dba/Best Little Shop in Sedona, (`'Tenant”) assumed a Lease on August 6, 1991 from Helena Sigman,
which Assignment was approved by the Landlord; Helena Sigman having assumed the Lease from Russell and Renee Flaherty on December
4, 1988; which Lease they had entered into dated October 1, 1987 with Sedona Uptown Properties, an Arizona limited partnership,
predecessor in interest to Canyon Portal Properties, Inc., ("Landlord") for the premises known as Suite 1, Trading Post
Shops ("premises"); and

 

WHEREAS,
the Assignee, Nicrin, Inc., an Arizona Corporation, wishes to receive an assignment of said Lease, and

 

WHEREAS,
pursuant to the requirements of Article 8 of said Lease, the Landlord is required to consent and desires to consent to such an
assignment of the Lease;

 

NOW, THEREFORE, for valuable
consideration, receipt of which is acknowledged by each of the parties, Assignor hereby assigns to Assignee and Assignee accepts
assignment of the premises, and Landlord consents to the assignment under the following terms and conditions:

 

1.Assignee shall fully perform all of the
terms and conditions of the Lease for the full

term of the Lease.

 

2.Assignee shall continue to operate the
premises as a retail clothing and accessory

store with accessories for the home. Inventory shall
include, but not be limited to:

 

1.Contemporary
clothing for men, women, and children

2.Resortwear
including tee shirts, sweatshirts, caps, hats, and footwear

3.) Contemporary jewelry, watches,
sunglasses, and lotions

4.) Home accessories

 

No other merchandise shall
be allowed to be sold on the premises except by the written consent of the Landlord, which Consent shall not be unreasonably withheld.

 

3.Assignee shall execute the "Lease
Extension Agreement attached to this Assignment and labeled "Exhibit A".

 

    	 

    	 

    

 

4.Any
remodeling plans must first be submitted to the Landlord for its approval and then submitted to the City of Sedona for its approval,
if required. Also, any floor space that is added to the premises by the remodeling shall be subject to additional rental payments
in proportion to the original floor space.

 

CONSENT:

 

Landlord
consents to the assignment of this Lease by the Assignor to the Assignee subject to the receipt by the Landlord of the "Lease
Transfer Fee" of $15,951.00.

 

All
rights, obligations, and liabilities herein shall extend to and bind the heirs, executors, administrators, successors, subleases,
and assigns of the parties hereto.

 

The
premises may not be further assigned or subleased without the consent of the Landlord.

 

If legal
or other proceedings are brought or commenced to interpret or enforce the terms of the Agreement, the prevailing party shall be
entitled to recover all costs and expenses of such proceedings, including reasonable attorney's fees, regardless of whether any
such proceedings are prosecuted to judgment.

  

 

 

    	 

    	 

    

 

“Exhibit A”

 

LEASE EXTENSION AGREEMENT

  

This
Lease Extension Agreement (Extension) is entered into this 30th day
of June, 1997 by and between CANYON PORTAL PROPERTIES, INC., an Arizona corporation ("Canyon Portal" or "Landlord")
and N1CRIN, Inc., ("Tenant"). The Lease remains in full force and effect except as modified in this Lease Extension Agreement.

 

RECITALS;

 

1.Sedona
Uptown Properties, an Arizona limited partnership, predecessor in interest to Canyon Portal Properties, Inc., and Russell and Renee
Flaherty, entered into a Shopping Center Lease Agreement ("Lease") dated October 1, 1987, as Landlord and Tenant respectively.
On December 4, 1988, Tenant assigned its rights and obligations to Helena Sigman, which assignment was approved by the Landlord.
On January 1, 1989 Canyon Portal Properties, Inc. assumed all of the rights and obligations of Sedona Uptown Properties. On September
21, 1989, Landlord and Tenant entered into an Addendum to Lease by which "The term of the Lease shall be to end on September
30, 1991 ." On August 6, 1991, Helena Sigman assigned the Lease to Cindy Hoekema, which assignment was approved by the Landlord.
On October 1, 1991, Landlord and Tenant entered into a Modification Agreement which extended the term of the lease five years.
The Lease covers the Premises known as Suite 1, Trading Post Shops, Sedona, Arizona consisting of 531.70 square feet
of gross floor area. The Lease term commenced October 1, 1987, and ended September 30, 1996.
On June 30, 1997, Tenant assigned its interest in the Leasehold Premises to Nicrin, Inc., which Assignment Landlord Approved subject
to the fulfillment of this Lease Extension and all requirements herein.

 

2.Tenant
has given notice to Landlord that it wishes to extend its Lease of the premises with Landlord for a period of ten (10) years.

 

3.Landlord
has determined that the current market rate for the Renewal Term of the Lease shall include a "Lease Transfer fee", annual
inflationary rent increases over the life of the lease, and an increased "Security deposit", all of which shall be defined
in this Extension. In consideration for the "Lease Transfer Fee" provision in this Extension, Landlord shall grant to
Tenant an extension effective for a 10 year period. Tenant has agreed that the inclusion of the (i) "Lease Transfer Fee",
(ii) annual inflationary increases, and (iii) increased security deposit are acceptable in this Extension in consideration for
the 10 year Renewal Term of the lease.

 

	lesteatdoo	I

 

    	 

    	 

    

 

NOW THEREFORE. THE PARTIES AGREE AS FOLLOWS: 

 

1.Ten
Year Renewal Term. The Renewal of the Lease shall be a ten (10) year period commencing October 1, 1996, and ending September
30, 2006.

 

2.Lease
Transfer Fee Tenant shall pay to Landlord a Lease Transfer Fee equal to $30.00 per square foot of the leased premises upon
the occurrence of any of the following events: (i) Tenant sells, transfers or assigns its interest in the business being conducted
at the premises to any other person or legal entity; (ii) A sale, transfer or assignment of all or portion of the ownership of
stock or ownership interest in the present Tenant entity or any successor entity; or (iii) Tenant enters into a sub-lease, license,
use or occupancy agreement with any other person or entity for the leased premises. This Lease Transfer Fee is specifically negotiated
to compensate Landlord for a transfer of Premises that Tenant acknowledges is in short supply in Uptown Sedona, Arizona. Should
Tenant, for any reason, reacquire the leased premises after any sale, sub-lease or transfer; there will be no "transfer fee"
to Tenant upon the reacquisition of the premises. However, any subsequent action by Tenant that meets the requirements of items
(i), (ii), or (iii) above, shall subject Tenant to a new transfer fee. The Offer of Landlord to enter into this Extension is specifically
contingent upon Tenant agreeing to pay the Lease Transfer Fee. Any failure of Tenant to pay a Lease Transfer Fee will entitle Landlord
immediately, and without notice, to terminate the Lease, as modified by the Lease Extension Agreement. The Lease Transfer Fee is
not in substitution of Paragraph 8.01 of the Lease concerning assignment and subletting. which paragraph remains in full force
and effect.

 

3.Anneal
Rent Increases.Commencing with the first year of the Renewal Term, monthly rent for the premises shall be increased by
$.25 per square foot per month over the prior year's rent rate for the first five (5) years of the renewal term. This monthly increase
over the prior year's rate represents an average increase of less than 6% per year for the first five years of the Renewal Term.
Rent for the first year of the Renewal Term shall be $4.00 per square foot per month. Commencing with the sixth year of the Renewal
Term and continuing through the remaining years of the Renewal Term, the monthly rent shall be increased based upon a cost of living
adjustment calculated in the following manner. As promptly as practicable at the annual anniversary of the Renewal Term beginning
with the 5th anniversary of the Renewal Term, Landlord shall compute the increase, if any, in the cost of living for the preceding
one-year calendar period based upon the "Revised Consumers Price Index -- All Cities" (the index), published by the Bureau
of Labor Statistics of the United States Department of Labor. The index number indicated in the column entitled "all items"
for the month of December, 1999 shall be the "base Index number" and the corresponding Index number for the month of
December for any year in which a calculation is to be made, commencing in the year 2000 shall be the "current Index number".
The Current Index No. shall be divided by the Base Index Number, and the resulting figure multiplied by the rent payable of $5.00
per square foot for year 5 of the Renewal Term. In any event, the cost of living adjustment calculated in accordance with the foregoing
formula shall not be less than 3% of the prior year's rent rate and not more than 7% of the prior year's rent rate.

 

	lesseattl.doe	2

 

    	 

    	 

    

 

4.Increased
Security Deposit Tenant shall increase its Security Deposit from its present amount of $1,993.88 to $2,658.50, which is
equal to the ending monthly rental rate for the 5th year of the Renewal Term.

 

5.Landlord's
Management Fee. Landlord's Management Fee is compensation and fees actually paid by Landlord to an independent management
agent or broker for management of the Shopping Center; or, if Landlord manages the Center on its own behalf, such fees shall be
stipulated to be and computed as three percent (3%) of the gross rent received by Landlord from all Shopping Center tenants for
the fiscal year in question. Tenant confirms that such Landlord's Management Fee is to be included as a Common Area Maintenance
expense under the Lease and this Extension.

 

6.Landlord
Construction Work Landlord, during the term of the Lease, will be doing construction work on the Trading Post Shops. Such
work will include, but not be limited to, installing a fire sprinkler system, re-roofing, and general renovation. Tenant acknowledges
that such work may interfere with the ability of Tenant to conduct its business. if Tenant is unable to open for business solely
because of the work of Landlord, then Tenant may abate the rent owed to Landlord for any days Tenant cannot open due exclusively
to the fault of Landlord and its reconstruction work, as long as Tenant notifies Landlord in writing by 10:00 a.m. on each day
that Tenant cannot open for business. The abatement of rent will be determined by the number of days in the relevant month. Since
Tenant pre-pays its Lease rate, Tenant may take a credit on the subsequent month for any abatement of rent which is due to the
Tenant. Tenant acknowledges that the abatement of rent is the only consideration that will be paid by Landlord to Tenant for the
interference with Tenant's business. The maximum number of days for which rent may be abated by Tenant is ten (10) days. Landlord
also states and Tenant acknowledges that the rear wall of the building will be upgraded and such improvements may require the removal
of doors and/or windows located in the rear wall. Also, all utilities serving the building will be relocated underground and such
relocation may cause an interruption of Tenant's business; but such interruption shall not entitle Tenant to any abatement of Rent.

 

7.Restatement
of Article 3.Article 3 of the Lease and the subsequent modifications which set forth the use of the leased premises
is hereby restated as follows:

 

Use of Leased Premises.Lessee shall operate
the leased premises only for the use and purpose for which it is let: As a retail clothing and accessory store with accessories
for the home. Inventory shall include, but not be limited to:

 

1.Contemporary clothing for men, women, and children

2.Resortwear including tee shirts, sweatshirts,
caps, hats, and footwear

3.Contemporary jewelry, watches, sunglasses, and
lotions

4.Home accessories

 

	C 	Weal Idea	3

    	 

    	 

    

 

No other merchandise shall be allowed
to be sold on the premises except by the written consent of the Landlord, which consent shall not be unreasonably withheld.

 

Except as modified above, the Lease remains
in full force and effect.

 

	LANDLORD:	TENANT:
	CANYON PORTAL PROPERTIES, INC.,	
        Nicrin, Inc.,

        an Arizona Corporation

		

 

    	 

    	 

    

 

MODIFICATION AGREEMENT

  

This Modification Agreement is made and entered
into this 1st day of October 1991 by and between Cindy Hoekema hereinafter referred to as "lessee" and Canyon
Portal Properties, Inc. (assignee of interest of Sedona Uptown Properties, an Arizona limited partnership) hereinafter referred
to as "lessor".

 

RECITALS

 

1.This modification
agreement. pertains to that certain lease agreement and amendments, assignments, and modifications, all as attached hereto as exhibit
'A".

 

2.This modification
agreement pertains to space 1 Trading Post Shops, located at 270 North Highway 89-A, Sedona, Coconino County, Arizona.

 

3.The lessor and
lessee as defined above wish to renew and modify said lease agreement'.

 

NOW THEREFORE,in consideration
of the promises and mutual covenants contained herein, and $10.00, and other good and valuable consideration, the receipt
of which is hereby acknowledged, it is agreed.

 

1.That the attached
existing lease, amendments, assignments and modifications are in good standing and both lessor and lessee waive all notice periods
required for renewal and modification of said lease agreement.

 

2.Article 1. Term
shall be modified to a term of five years commencing on October 1, 1991 and ending on September 30, 1996.

 

3. Article 9. Options shall
be modified hereby to grant an option to "lessee" to extend the term of this lease, as modified by this
agreement, for a period of five years. All other conditions of Article 9. pertain to this option.

 

4.Article 2. Rent shall be modified
to the following rental schedule.

 

	First 6 mo.:	 	$2.50 / sq. ft. / month
	Second 6 mo.:	 	$2.75 / sq.ft. / month
	Year 2:	 	$3.00 / sq.ft. / month
	Year 3:	 	$3.25 / sq.ft. / month
	Year 4:	 	$3.50 / sq.ft. / month
	Year 5:	 	$3.75 / sq.ft. / month

 

    	 

    	 

    

All other conditions of this article remain the same.

 

5.Article
7.01. Default shall be modified to eliminate a ten day grace period and all rents will be due on the first of each month
and delinquent on the second day of each month. All other terms and conditions of Article 7.01 remain the same.

 

6.Article 2. Rent is modified to acknowledge
a total last months rent deposit of $1993.88 plus applicable taxes.The provision for 6% interest on the last
months rent deposit is hereby eliminated from article 2.

 

7."Lessee" is hereby granted an
option to add as additional lease space under this lease any new space added to the rear of the existing shops at Trading Post-Shops.

 

This modification agreement modifies only those articles
as indicated above and only to the extent indicated and all other terms and conditions of the attached lease agreement, assignments,
modifications and amendments shall remain in full force and effect.

 

	Lessor:	Lessee:
		

 

    	 

    	 

    

 

ASSIGNMENT OF LEASE

 

FOR VALUE RECEIVED Helena Sigman does
hereby assign, sell, transfer and convey to Cyndee Hoekema, a married woman, as her sole and separate property, all of her right,
title and interest in and to that certain Lease dated October 1, 1987, between Canyon Portal Properties, Inc., an Arizona corporation,
Lessor, and Helena Sigman, Lessee, the leased premises being Trading Post Number One, Best Little Shop in Sedona at 270 North Highway
89A, Sedona, Coconino County, Arizona.

 

It is understood and agreed that the
Assignee shall assume and pay the rent accruing under the terms of the Lease commencing with the rental due and payable on the
first day of August, 1991. Helena Sigman agrees that in the event of a default of any provision of the Lease by Hoekema, she shall
remain liable to the Lessor for any unpaid rent and shall be liable for any allowable damages. A default by Cyndee Hoekema under
any of the terms, conditions and covenants of the lease assigned herein, shall result in a reversion to Helena Sigman of all her
right, title and interest in the original lease dated October 1, 1987, and any amendments thereto, and shall not be deemed to be
a forfeiture of her rights. The failure of Cyndee Hoekema to make any payment under the Agreement for Sale between Hoekema and
Sigman, shall also result in a forfeiture of assignee's rights under the lease assigned herein, and all such rights and interest
in the lease shall revert to Helena Sigman.

 

This agreement shall be binding
upon the heirs, assigns, personal representatives and successors of both Assignor and Assignee.

 

DATED this 6th
day of August, 1991.

 

 

   

ACCEPTANCE OF ASSIGNMENT OF LEASE

 

Cyndee Hoekema, the undersigned Assignee,
does accept the above assignment of Lease and agrees to all of the terms and conditions contained. therein.

 

DATED this 6th day of August,
1991.

 

    	 

    	 

    

 

CONSENT TO ASSIGNMENT OF LEASE

 

Canyon Portal Properties, Inc.,
Lessor of the premises described above, hereby consents to the Assignment of Lease dated October 7, 1987, whereby the Lease
was assigned by Helena Sigman as Assignor to Cyndee Hoekema, does hereby approve of the same provided, however, that said
assignment shall not operate to release the Assignor Helena Sigman, from liability for the faithful performance of the terms,
conditions and covenants of the Lease.

 

	DATED this 6th day of August, 1991.	
	 	Canyon Portal Properties, Inc.
	 	

  

 

 

    	 

    	 

    

 

Addendum To Lease

  

This Addendum is made this 21st day of September,
1989 between Canyon Portal Properties, Inc. (Hereafter, referred to as Lessor) and Helena Sigman (Hereafter referred to as lessee.)
added to that lease agreement entered into on October 1, 1987 and amended on for the below described lease premises.

 

LEASED PREMISES: Trading Post #l Best Little Shop
in Sedona

  

The lessor and lessee hereby agree as follows:

1.Section 1.01 The
term of lease shall be extended to end on September 3o, 1991.

2.Section 2.01 Rental
shall be (same as year 2) for year three of the lease agreement and shall be (same as year 3) for year four of the lease agreement.

 

All other terms and conditions
of the lease and above referred addendums there to remain in FULL FORCE AND EFFECT.

 

 

    	 

    	 

    

 

CANYON PORTAL PROPERTIES

P.O. BOX 10293

SEDONA, ARIZONA 86336

 

MARCH 24, 1989

 

BEST LITTLE SHOP IN SEDONA

SPACE 1

TRADING POST PROPERTY

SEDONA ARIZONA

 

R.E. LEASE ON SPACE 1 TRADING POST:

 

This letter will serve
as approval for the following items r. e. your lease on the above space.

 

1.You have our permission
to install a One Hour Photo service in your space subject to your getting the approval of the State of Arizona Health Department
that the chemicals being used in the photo process will not harm our sewerage system. We have rented a space in our new building
to John Minnick who is going to put in a one hour photo business. If this building should get built and we have to honor that lease
then we can cancel our agreement with you on a thirty day notice. If we should not build the building or finalize the lease with
Mr. Minnick then you can consider the photo service becoming a permanent part of your lease and we will give you exclusivity for
the photo process.

 

2.We anticipate waiting
now until early summer or late fall to do the outside improvement work. In this regard you have our approval to install an awning
on the front of your shop. Once we start the work you will have to remove the awning but it will be your property at that time.

 

3.You
requested being able to put a side door in your space opening out to the driveway. We would like to see a simple drawing of where
this would be placed and the affect on the new driveway. We are very concerned about the effects this will have on traffic
coming out onto the driveway. Please contact our architect Don Woods to make arrangements to work this out.

 

 

    	 

    	 

    

 

ASSIGNMENT OF LEASE
AND CONSENT OF LANDLORD

 

This document incorporates in whole the Contract
of Sale entered into on December 4, 1988 between Russell Flaherty and Helena Sigman for the Purchase and sale of the lease
of space #1 (one) in the TRADING POST of Sedona.

 

Parties to this contract, 1) Russell Flaherty,
lessee and seller, 2) Helena Sigman, assignee and buyer, and 3) John De Poe, master leaseholder and landlord.

. ..

The lessee and landlord have no claim or defenses
one against the other by reason of said lease.

 

It is agreed:

 

A) Assignment. Lessee hereby sells, assigns and transfers to
Assignee-any and all of the Lessee's right, title and interest in and to the lease. The foregoing sale, assignment and transfer
is made without any recourse whatsoever to Lessee and without any representations or warranties express or implied any nature whatsoever.

 

B) Acceptance and Indemnification. Assignee hereby accepts the
foregoing. sale , assignment and transfer and promises and agrees to pay all rent and additional rent, and to faithfully perform
all covenants, stipulations, agree-ments, conditions and obligations under the Lease accruing on and after December 15, 1988 and
continuing thereafter, and Lessee is responsible for the period prior thereto. Assignee shall indemnify and save Lessee harmless
from any and all claims, demands, actions, causes of action, suits, proceedings, damages, liabilities and costs and expenses of
every nature whatsoever and relating to the Lease or the premises demised thereunder arising on and after December 15,. 1988.

 

C) Modification of Lease. The Lessee agrees that the Landlord
and the Assignee may change, modify or amend the Lease in any way including the rental to be paid thereunder, and that further
assignments may be made, without notice to or consent of the Lessee, and without in any manner releasing or relieving the Lessee
from liability under the Lease as originally executed by the parties thereto, and the Lessee shall remain liable under all terms,
covenants and conditions of the Lease as originally executed to the end of the term thereof.

 

D) Consent of Landlord. In consideration of the foregoing, the
Landlord. hereby consents to the assignment of the Lease by the Lessee to the Assignee, but upon the express condition that neither
such consent nor the collection of rent from the Assignee shall be deemed a waiver or relinquishment in the future of the covenant
against assignment or subletting without the written consent of the Landlord, nor shall the acceptance of Assignee be construed
as releasing the Lessee from the full performance of the provisions of the Lease.

  

    	 

    	 

    

 

ASSIGNMENT OF LEASE AND CONSENT OF
LANDLORD

 

Page two of two

 

E)Agreement Binding.
This agreement shall be binding upon the successors and assigns or the parties hereto.

F)Landlord hereby
agrees to transfer the last month's rent held on deposit from Lessee to Assignee. 

G) Following discussions
between Assignee and Landlord, the Landlord agrees that the Assignee will carry on a retail trade of women's accessories and accessories
for the home. Landlord further recognizes that it is. impossible to totally avoid Native American made and or related
items in the retail trade in Sedona. It is the intent of the Assignee not to be identified as a Native American jewelry shop,
but to stress the import of products from her own Slavic background.

 

    	 

    	 

    

 

September 10, 1988 

 

    	 

    	 

    

 

LETTER AGREEMENT AND ADDENDUM TO LEASE
SPACE 1 TRADING POST 

 

On October 1, 1987 we entered into
a 1 year lease agreement which expires on September 30, 1988. By this letter agreement we agree to extend the term of the lease
to three (3) years to expire on September 30, 1990.

 

The rent for the second lease year
(10/1/88-9/30/89) will be $1195 per month and the rent for the third lease year (10/1/89- 9/30/90) will be $1328 per month.

 

You will be able to operate your
present restaurant business until such time as we convert over to the new sewer system or we are given notice by the State Health
Dept. that we can no longer have a restaurant operation. We will give you at least 30 days notice of this termination of use. You
can operate under the lease for the balance of the term as long as the use is approved in advance by us. The use cannot be unreasonably
withheld.

 

By this letter agreement you hereby have a right to
renew the lease for 3 additional years at market rates to be mutually agreed upon. If the parties cannot upon rates then the parties
agree to binding arbitration.

 

All other terms, and conditions
of the original lease remain in full force and effect.

 

		
	Russell Flaherty	 
	Date_		
        Date

 

 

    	 

    	 

    

 

LEASE AGREEMENT

 

This Lease Agreement is
made and entered into this 1st day of October 1987, by and between Sedona Uptown Properties, an Arizona Limited Partnership, hereinafter
referred to as Lessor, and Russell and Renee Flaherty, hereinafter referred to as Lessee.

 

In consideration of the mutual covenants
and agreements herein set forth, and other good and valuable considerations, Lessor does hereby demise and lease to Lessee, and
Lessee does hereby lease from Lessor, the premises situated in Sedona, Coconino County, Arizona, and more particularly described
in Exhibit "A" attached hereto and hereinafter called the "leased premises." (Space # 1 containing
531.70 square feet).

 

ARTICLE 1. TERM

 

Term Of Lease

 

••

 

1.01The term of this lease shall
be one year, commencing on October 1, 1987, and ending on September 30, 1988, unless sooner terminated as herein provided.

 

Lease Year Defined

 

1.02The term "lease year",
as used herein, shall mean a period of twelve (12) consecutive full calendar months beginning on October 1, 1987, and continuing
through September 30, 1988.

 

ARTICLE 2. RENT

 

2.01Lessee agrees to pay to Lessor without
any prior demand therefore and without any deduction or setoff whatsoever, a fixed rent per month payable on the 1st. day
of October 1987 and on the first day of each month of the lease term, plus applicable State and Local Sales and Use Taxes, as
follows:

 

	Lease Months	 	1	 	thru	 	6	 	$	1000.00	 
	Lease Months	 	7	 	thru	 	12	 	$	1064.00	 

 

In addition to
the Rent due above Lessee agrees to pay a last months rent in the amount of $1064.00 plus-applicable sales tax. Said last
months rent will be billed in six monthly installments beginning with the second lease month of this agreement. Lessor agrees
to pay Lessee 6% interest on said last months rent.

 

    	 

    	 

    

 

ARTICLE 3. BUSINESS

 

Lessee shall operate the leased premises
for the use and purpose for which it is let, the operation of a Fast Food, Hamburger, Sandwich, Ice Cream and Soft Drinks continuously
during the term of this lease agreement. Lessee shall keep the leased premises reasonably stocked with merchandise, and reasonably
staffed to serve the patrons thereof, comparable to Fast Food Restr. doing a similar business in the trade area of the leased
premises. Lessee in not required to operate its business during any time when such operations must be suspended because of casualty
loss to the building, strike, insurrection, or other cause beyond the control of Lessee. The business will serve during the hours
of 9:00 a.m. to 5:00 p.m. each day. The business of the Lessee will be restricted to the Leased premises and the Lessee will not
be allowed to display or sell merchandise outside the Leased premises, nor shall Lessor allow other tenants to do so. Parking
in front of the leased premises will be restricted to patrons of the leased premises and Lessor will provide parking for employees
of the Lessee. Lessee may not use the parking for promotional, personal or by employee's in front of or adjacent to the leased
premises. Lessee will not be required to be open during inclement weather or vacation periods.

 

ARTICLE 4. MAINTENANCE
AND SURRENDER

 

Maintenance

 

4.01Lessee shall at its
expense and risk maintain underground or otherwise concealed plumbing, and the structural soundness of the exterior
walls on the leased premises in good repair and condition. Lessor will provide common restroom facilities. The bathroom
facilities Included on the Leased premises shall be used by employees only.

 

Lessee understands that he will
be responsible for the following:(1) maintenance of all interior walls, floors, and ceilings; (2) construction and
maintenance of all counters, shelves, and displays; (3) installation of all lighting fixtures; (4)maintenance of the
air conditioning system; (5)
 maintenance of all interior electrical and plumbing facilities; (6). maintenance of all
windows and installation of all window coverings; window glass, interior decorations, exterior signs, and door fittings. Lessee,
in addition to being responsible for their pro rata share of all repairs, maintenance and replacements on the exterior .of the
building shall also be responsible for their pro rata share of all common area up keep, maintenance and replacement.Lessor
will provide the maintenance, repair and replacement of all common areas and will bill Lessee no less than monthly and Lessee
hereby agrees to pay this in addition to the monthly rent due under this lease. Lessee's percentage share shall be 500/3,800 (13%)
of the repair, maintenance, replacement of the premises and common areas as outlined above.It is further agreed that
the common area will be limited to only that portion in front of the Trading Post and shall not include any other portion of the
property. This Lease is a triple net lease with all costs to be paid for or passed on to the Lessee.

 

    	 

    	 

    

 

Surrender

 

4.02Lessee shall. throughout the
lease term maintain the building and other improvements constituting the leased premises and keep them free from
waste or nuisance, and shall deliver up the lease in good repair and condition, reasonable wear and tear and damage by fire, tornado,
or other casualty excepted. In the event Lessee should neglect to reasonably maintain the leased premises, Lessor shall
have the right, but not the obligation, to cause repairs or corrections to be made, and any reasonable costs therefore
shall be payable by Lessee .to Lessor as additional rental on the next rental installment date.

 

ARTICLE 5. OBLIGATIONS
OF LESSOR AND LESSEE

 

Taxes and Assessments

 

5.01(a)Lessee shall be responsible
for all sales taxes, state license charges, state income taxes, state franchise taxes, federal withholding taxes,
P.I.C.A. and P.U.T.A. employer contributions, and for any other state, federal, county, or municipal tax, charge, fee, impost,
or contribution which may be required to open, operate or sustain Lessee's business affairs. Lessee shall have the right in good
faith at its cost and expense to contest any such taxes, charges, and assessments, and shall be obligated to pay the contested
amount only if and when finally determined to be due.

 

(b)Lessee shall pay when due their
percentage share of all Real Estate Property Taxes for land and improvements on. the Trading Post Building which includes
their premises and the common area as defined above. This lease is a triple net lease with all costs for property taxes
to be pro rated to the Lessee's.

 

Alterations, Additions,
and Improvements

 

5.02Lessee shall not create any
openings in the roof or exterior walls, nor make any alternations, additions, or improvements to the leased premises without
the prior written consent of Lessor. Consent for nonstructural alternations, additions, or improvements shall not
be unreasonably withheld by Lessor.Lessee shall have the right at all times to erect or install shelves, bins,
machinery, air conditioning or heating equipment, walk in freezers and refrigeration equipment, and trade fixtures, provided
that Lessee complies with all applicable governmental laws, ordinances, and regulations.

 

    	 

    	 

    

 

All built in or
affixed alternations, additions, or improvements made by Lessee shall become the property of the Lessor at the termination
of this lease; however, the Lessee shall promptly remove, if Lessor so elects, all alternations, additions, and improvements,
and any other property placed in the premises by Lessee, and Lessee shall repair any damage caused by such removal.

 

Signs

 

5.03 Lessee shall not erect or install
any sign, placard, or exterior advertisement on the leased premises unless such sign, placard or exterior advertisement be approved
by Lessor and Coconino County; but such approval shall not be unreasonably withheld if the sign, placard, or exterior advertisement
is in harmony with the design concept of the building of which these demised premises are a part.Lessee shall, at Lessor's
option, remove all signs at the termination of this lease, and shall repair any damage and close any holes caused by such removal.

 

Utility Charges

 

5.04 Lessee shall pay all utility
charges ,for electricity, telephone, sewer, heat, gas, water, and power used in and about the leased premises, all such
charges to be paid by Lessee to the utility company and municipality furnishing the same, before the same shall become delinquent.
There may be certain utility charges that will be paid on a prorated basis or charged as a common area expense.Lessee agrees
to these charges as part of this triple net lease.

 

Insurance

 

5.05 Lessee shall, during the term of this
lease, provide Bodily Injury and Property Damage Liability Insurance for the leased premises in an amount not less than $ 500,000.00.
Lessee shall provide Lessor with a certificate of Insurance showing Proof of this coverage.Lessor will obtain insurance

coverage for the replacement of the buildings and General Liability insurance for the Trading Post Building and Common Areas. Lessee
agrees to pay his pro rata portion of the cost of said policy.

 

Tire and Casualty Damage

 

5.06 If the building or other
improvements on the leased premises should be damaged or destroyed by fire, tornado, or other casualty, Lessee shall
give immediate written notice thereof to Lessor.

 

    	 

    	 

    

 

Total Destruction

 

(a)If
the building on the leased premises should be totally destroyed by fire, tornado, or other casualty, or it if should be damaged
that rebuilding or repairs cannot reasonably be completed within 180 working days from the date of written notification by Lessee
to Lessor of the occurrence of the damage, this lease shall terminate and rent shall be abated for the unexpired portion of this
lease, effective as of the date of said written notification.

 

Partial Damage

 

(b)If the building or other improvements on the leased
premised should be damaged by fire, tornado, or other casualty, but not to such an extent that rebuilding or repairs cannot reasonably
be completed within 180 working days from the date of written notification by Lessee to Lessor of the occurrence of the damage,
this leases shall not terminate but Lessor shall, if the casualty has occurred prior to the final 6 mouths of the lease term, at
his sole cost and risk proceed forthwith to rebuild or repair such building and other improvements to substantially the condition
in which they existed prior to such damage.If the casualty occurs during the final 6 months of the lease term, Lessor
shall not be required to rebuild or repair such damage.If the building and other improvements are to be rebuilt or repaired
and are untenantable in whole or in part following such damage, the rent payable hereunder during the period in which they are
untenantable shall be adjusted equitably. In the event that Lessor should fail to complete such rebuilding or repairs within 90
working days from the date of written notification by Lessee or Lessor of the occurrence of the damage, Lessee may at its option
terminate this lease by written notification at such time to Lessor, whereon all rights and obligations hereunder shall
cease.

  

Condemnation

 

5.07 If during the term of this lease
or any extension or renewal thereof, all of the leased premises should be taken for any public or quasi-public use under any governmental
law, ordinance, or regulation or by right of eminent domain, or should be sold to the condemning authority under threat of condemnation,
this lease shall terminate and the rent shall be abated during the unexpired portion of this lease, effective as of the date of
the taking of said premised by the condemning authority.

 

ARTICLE 6. INDEMNITY

 

Lessee agrees to indemnify and hold
Lessor harmless against any and all claims, demands, damages, costs and expenses, including attorney's fees for the defense
thereof, arising from the conduct or management of Lessee's business in the leased premises or from any breach on the part of
Lessee of any conditions of this lease, or from any act or negligence or Lessee, its agents, contractors, employees, subtenants,
concessionaires, or licensees in or about the leased premises. In case of any action or proceeding brought against Lessor by reason
of any such claim, Lessee, upon notice from Lessor, covenants to defend such action or proceeding by counsel acceptable
to Lessor.

 

    	 

    	 

    

 

ARTICLE 7. DEFAULT

 

Default by Lessee

 

7.01 If Lessee shall allow the rent
to be in arrears more than ten (10) days after written notice of such delinquency, or shall remain in default under any
other condition of this lease for a period of ten (10) days after written notice from Lessor, or should any other person than
Lessee secure possession of the premises, or any part thereof, by reason of any receivership, bankruptcy proceedings, or
other operation of law in any manner whatsoever, Lessor may at its option, without notice to Lessee, terminate, this lease,
or in the alternative, Lessor may reenter and take possession of said premises and remove all persons and property therefrom,
without being deemed guilty of any manner of trespass, and relet the premises or any part thereof, for all or any part
of the remainder of said term, to a party satisfactory to Lessor, and at such monthly rental as Lessor may with reasonable
diligence be able to secure.Should

Lessor be unable to relet after reasonable efforts to do so, or should such monthly rental be lease than the rental
Lessees was obligated to pay under this lease, or any renewal thereof, plus the expense of reletting, then Lessee shall pay the
amount of such deficiency to Lessor.

 

It is expressly agreed that
in the event of default by Lessee hereunder, Lessor shall have a lien upon all goods, chattels, or personal property of any description
belonging to Lessee which are placed in, or become a part of, the leased premises as security for rent due and to become due for
the remainder of the current lease term, which lien shall not be in lieu of or in any way affect the statutory Lessor's lien
given by law.

 

Default by Lessor

 

7.02If Lessor defaults in the performance
of any term, covenant, or condition required to be performed by him under this agreement, Lessee may elect either one of
the following:

 

(a)After
not less than 30 days' notice to Lessor, Lessee may remedy such default by any necessary action, and in connection with such remedy
may pay expenses and employ counsel; all sums expended or obligations incurred by Lessee in connection therewith shall be paid
by Lessor to Lessee on demand, and on failure of such reimbursement, Lessee may, in addition to any other right or remedy that
Lessee may have, deduct the costs and expenses thereof from rent subsequently becoming due hereunder; or

 

    	 

    	 

    

 

(b)Elect to terminate this agreement
on giving at least 30 days' notice to Lessor of such intention, thereby terminating this agreement on the date designated
in such notice, unless Lessor shall have cured such default prior to expiration of the 30 day period.

 

ARTICLE 8. ASSIGNMENT

 

Assignment and Subletting by Lessee

 

6.01Lessee shall have the right
with the prior written consent of Lessor to assign this lease, and any interest therein, and to sublet the leased premises, or
any part thereof, or any right or privilege pertinent thereto, provided each assignee assumes in writing all of Lessee's obligations
under this lease and Lessee shall remain liable for each and every obligation under this lease. Lessor shall not unreasonably
withhold approval of the assignment of this lease.

 

 

Assignment by Lessor

 

8.02Lessor is expressly given the
right to assign any or all of its interest under the terms of this lease.

 

ARTICLE 9. MISCELLANEOUS

 

Notices and Addresses

 

9.01All notices provided to be given under
this agreement shall be given by certified mail or registered mail, addressed to the proper party, at the following address:

 

	
        Lessor:

         

        Russell and Rene

        Flaherty

        P.O. Box 1846

        Sedona, Arizona 86336
	
        Lessee:

         

        Sedona Uptown Properties

        P.O. Box 10239

        Sedans, Arizona 86336

 

 

Parties Bound

 

9.02This agreement shall be binding
upon and inure to the benefit of the parties hereto end their respective being executors, administrators, legal representatives,
successors, and assigns where permitted by this agreement.

 

    	 

    	 

    

 

Arizona Law to Apply

9.03This agreement shall be construed
under and in accordance with the laws of the State of Arizona, and all obligations of the parties created hereunder are
performable in Coconino County, Arizona.

 

Legal Construction

 

9.04In case any one or more of the
provisions contained in this agreement shall for any reason be held to be invalid, illegal, or unenforceable in any respect,
such invalidity, illegality, or unenforceability shall not affect any other provision thereof and this agreement shall be construed
as if such invalid, illegal, or unenforceable provision had never been contained herein. 

 

Prior Agreements Superceded

 

9.05This agreement constitutes the
sole and only agreement of the parties hereto and supercedes any prior understandings or written or oral agreements between
the parties respecting the within subject matter.

 

Amendment

 

9.06No amendment, modification,
or alternation of the terms hereof shall be binding unless t1e same be in writing, dated subsequent to the date hereof
and duly executed by the parties hereto.

 

Rights and Remedies Cumulative

9.07The rights and remedies provided
by this lease agreement are cumulative and the use of any one right or remedy by either party shall not preclude or waive
its right to use any or all other remedies.Said rights and remedies are given in addition to any other rights the parties
may have' by lay, statute, ordinance, or otherwise.

 

Waiver of Default

 

9.08No waiver by the parties hereto
of any, default or breach of any term, condition, or covenant of this lease shall be. deemed to be waiver of any other
breach of the same or any other term, condition, covenant contained herein.

 

Attorneys'
Fees

 

9.09In the event the Lessor or Lessee
breaches any of the terms of this agreement whereby the party not in default employees attorneys to protect or enforce its rights
                                                                 hereunder and prevails, then the defaulting party agrees to pay the other party reasonable attorneys' fees so incurred by
                                                                 such other party.

 

    	 

    	 

    

 

Force Majeure

 

9.10Neither Lessor nor Lessee shall
be required to perform any term, condition, or covenant in this lease so long as such performance is delayed or prevented by force
majeure, which shall mean acts of God, strikes, lockouts, material or labor restrictions by any governmental authority, civil
riot, floods, and any other cause not reasonably within the control of Lessor or Lessee and which by the exercise of due diligence
Lessor or Lessee is unable, wholly or in part, to prevent or overcome.

 

Time of Essence

 

9.11Time is of the essence of this
agreement

 

9.12The Triple Net portion of this
lease agreement as applicable to the repairs, maintenance and replacement of the building containing the lessee premises
shall not begin until Lessor, at Lessor's expense has completed the reroofing of the roof, installation of air conditioning, completion
of front fascade, completion of front courtyard and landscaping and sidewalks. The triple net portion of the lease as it
applies to Property Taxes and Insurance shall begin at inception of this Lease agreement. The work as outlined above shall begin
no earlier that November 1, 1987 and be completed no later than March 1, 1988.

 

IN
WITNESS WHEREOF, the undersigned Lessor and Lessee hereto execute this agreement as of the day and year first above written.

 

    	 

    	 

    

 

 

    	 

    	 

    

 

    	 

    	 

    

  

 

 

Exhibit 2(f)

 

IMH Financial Corporation

IMHFC Funded Payment
Summary to FCB

On 3/29/2013

 

	Minimum Required Payment by FCB (per FCB schedule)	 	$	613,334.12	 
	Less: L'Auberge payment recorded by FCB on 3/29/13	 	 	(188,714.79	)
	Minimum Interest Payment Due	 	 	424,619.33	 
	Add: Real property taxes due for L'Auberge	 	 	62,039.72	 
	Add: Real property taxes due for La Merra	 	 	23,148.68	 
	Total payment by IMHFC on 3/29/13	 	$	509,807.73	 
	 	 	 	 	 
	Less: Reimbursements from Borrower	 	 	 	 
	Real property taxes due for L'Auberge (4/5/13)	 	 	(62,039.72	)
	Real property taxes due for La Merra (4/5/13)	 	 	(23,148.68	)
	Excess payment on FCB loan (5/7/13)	 	 	(74,926.27	)
	Total reimbursements from Borrower	 	 	(160,114.67	)
	 	 	 	 	 
	Net out-of-pocket funding by IMHFC	 	$	349,693.06	 

 

 

    	 

    	 

     

 

 

Exhibit 3(c)-i

 

Tenants (LaMerra
Property)

 

James Earl and
Lisa McNatt Month to nth Lease Agreement; free rent In

exchange for serving as caretakers of the house

 

 

    	 

    	 

     

 

 

 

Exhibit 3(c)-ii

 

Tenants —
L'Auberge Property

 

NONE

 

 

    	 

    	 

     

 

 

 

Exhibit 3(c)-iii

 

Tenants —
Orchards Inn Property

 

NONE

 

 

    	 

    	 

     

 

 

 

Exhibit 3(c)-iv

 

Tenants —
Schnebly Hill Property

 

	Name	 	Unit	 	Monthly 
 Rent	 	 	Term
	Brittany Wolfe	 	C	 	$	650.00	 	 	Month to Month w/30 day notice
	Lizbeth Morales	 	B	 	$	650.00	 	 	Month to Month w/30 day notice
	Andre Pena	 	A	 	$	300.00	 	 	Month to Month w/30 day notice
	Miguel Ortiz	 	A	 	$	300.00	 	 	Month to Month w/30 day notice
	Joel Cuenca	 	A	 	$	300.00	 	 	Month to Month w/30 day notice

 

 

    	 

    	 

     

 

 

 

Exhibit 3(c)-v

 

Tenants —
Orchards Annex Property

 

NONE

 

 

    	 

    	 

     

 

 

 

 

 

Exhibit 3(c) —
vi

 

Tenants —
Orchards Inn Parking Lease

 

Orchards Inn &
Restaurant LLC is the Tenant under the Lease. There are no

sub-tenants.

 

 

    	 

    	 

     

 

 

Exhibit 3(c) —
vii

 

Tenants Sinagua
Plaza Storage Lease

 

L'Auberge Orchards
LLC Is the Tenant under the Lease. There are no sub-

tenants.

 

 

    	 

    	 

     

 

 

 

 

Exhibit 3(c) —
viii

 

Tenants —
Sinagua Plaza Parking Lease

 

L'Auberge Orchards
LLC Is the Tenant under the Lease. There are no sub-

tenants.

 

 

    	 

    	 

     

 

 

Exhibit 3 (c) —ix

 

Tenants —
Affordable Housing Lease

 

L'Auberge Orchards
LLC is the Tenant under the Lease. L'Auberge Orchards'

sub-tenants are:

 

	 	 	 	 	Monthly	 	 	 
	Name	 	Unit	 	Rent	 	 	Term
	Alberto Barrera/Gil Hermosillo	 	414/415	 	$	550.00	 	 	Month to Month w/30 day notice
	Chester Ford	 	434/435	 	$	550.00	 	 	Month to Month w/30 day notice

 

 

    	 

    	 

     

 

 

 

Exhibit 3 (c) —x

 

Tenants —
Temporary Housing Lease

 

L'Auberge Orchards
Is the Tenant under the Lease. L'Auberge Orchards' sub-

tenants are:

 

Temporary Housing
Rent Roll

 

	Room #	 	Tenant	 	Occupancy Date	 	Term End Date	 	Notes
	418	 	Bruce Campbell	 	10/15/2011	 	Indefinite	 	 
	419	 	Vacant	 	 	 	 	 	 
	436	 	Vacant	 	 	 	 	 	 
	437	 	David Perez	 	9/3/2012	 	4/30/2013	 	Pays $400 per month
	438	 	Hector Hernandez	 	4/19/2013	 	5/4/2013	 	 

  

 

    	 

    	 

     

  

Exhibit
3(h)

 

ASSIGNMENT
AND ASSUMPTION OF DECLARANT’S RIGHTS AND

APPOINTMENT
OF DESIGN REVIEW COMMITTEE 

 

When recorded return to:

 

Jonathan Brohard

Polsinelli Shughart, PC

One E. Washington St., Ste. 1200

Phoenix, AZ 85004

 

ASSIGNMENT
AND ASSUMPTION Of DECLARANT'S RIGHTS

AND APPOINTMENT OF DESIGN REVIEW COMMITTEE

 

(LaMerra Property)

 

THIS ASSIGNMENT AND
ASSUMPTION is made and entered into effective as of _____________________, 2013, by and among HL LLC, an Arizona limited
liability company (“Assignor”) and HL NEWCO, LLC, a Delaware limited liability company (“Assignee”).

 

RECITALS:

 

	 	A)	Assignor is named the “Declarant” under those certain Covenants, Conditions, and Restrictions for “The Retreat at Oak Creek” dated June 11, 2007, and recorded June 11, 2007 in Book 4513, Page 848 of the Official Records of Yavapai County, Arizona (the “Official Records”) (the “Declaration”). Capitalized terms appearing herein without definition shall have the meaning ascribed to such terms in the Declaration. The Declaration burdens and benefits the Property and the Lots.

 

	 	B)	Assignor and Assignee are parties to that certain “Sedona Agreement” dated March 29, 2013 whereby the Assignor, among others, has agreed to, among other things, convey and transfer to Assignee certain assets and interests owned, held and/or controlled by the Assignor, as identified in the Sedona Agreement and subject to the terms and conditions of the Sedona Agreement, for good and valuable consideration

 

	 	C)	Pursuant to the Sedona Agreement, Assignor is conveying the real property described on Exhibit A hereto (the “Property”) to Assignee, which Property is all of the real property owned by Assignor that is subject to the Declaration.

 

	 	D)	Assignor desires to transfer all of its right, title and interest in and to the Declaration, as “Declarant” and in every other respect, to Assignee, and Assignee desires to accept such assignment and assume all obligations thereunder.

 

	 	E)	Assignee, as successor Declarant, desires to appoint itself as “Design Review Committee” under the Declaration pursuant to Section 8.01 thereof.

  

    	 

    	 

     

NOW THEREFORE, IN CONSIDERATION
of the foregoing Recitals and the sum of Ten Dollars ($10.00) and other good and valuable consideration, the sufficiency of which
is hereby acknowledged: (i) Assignor hereby assigns and transfers unto Assignee all of its right, title, claim and interest in
and to the Declaration, as Declarant and in every other respect, and Assignee hereby accepts such assignment and assumes the same;
and (ii) Assignee, as successor Declarant, hereby appoints HL Newco, LLC, a Delaware limited liability company, as Design Review
Committee pursuant to Section 8.01 of the Declaration.

 

Pursuant to Section
11.20 of the Declaration, Assignee’s address for notices is c/o IMH Financial Corporation, P. O. Box 910, Scottsdale, Arizona
85252 and for hand-delivery, 7001 North Scottsdale Road, Suite 2050, Scottsdale, Arizona 85253.

 

ASSIGNOR AND ASSIGNEE
FURTHER HEREBY AGREE AND COVENANT that this Assignment and Assumption shall inure to the benefit of and be binding upon the successors
and assigns of Assignor and Assignee.

 

This Assignment may
be executed in any number of counterparts, each of which when so executed shall be deemed to be an original and all of which taken
together shall constitute one and the same agreement.

 

IN WITNESS WHEREOF,
Assignor and Assignee have executed this Assignment and Assumption of Declarant's Rights and Appointment of Design Review Committee
as of the day and year first written above.

 

[SIGNATURES ON FOLLOWING PAGE]

  

    	2

    	 

     

	ASSIGNOR:	HL LLC,
	 	an Arizona limited liability company
	 	 	 
	 	By:	 
	 	Name:	Albert B. Spector, Jr.
	 	Its:	 
	 	 
	ASSIGNEE:	HL NEWCO, LLC,
	 	a Delaware limited liability company
	 	 
	 	By:	IMH Financial Corporation,
	 	 	a Delaware corporation
	 	Its:	Sole Member
	 	 	 
	 	 	By:	 
	 	 	Name:	 
	 	 	Its:	 

 

Assignment and Assumption of Declarant’s
Rights – Signature

 

    	 

    	 

     

ACKNOWLEDGMENT

 

	STATE OF ARIZONA	)	 
	 	) ss	 
	COUNTY OF _________________________	)	 
	 	 	 
	On ____________________, before me, ____________________________________, a Notary Public in and for the State of Arizona, personally appeared Albert B. Spector, Jr., personally known to me (or proved to me on the basis of satisfactory evidence) to be the person whose name is subscribed to the within instrument and acknowledged to me that he/she executed the same in his/her authorized capacity, and that by his/her signature on the instrument the person, or HL LLC upon behalf of which Albert B. Spector, Jr. acted, executed the instrument.
	
         

         

        ______________________________________

        Signature
	
         

         

	
        My Commission Expires:

         
	(Space above for official notarial seal)

 

ACKNOWLEDGMENT

 

	STATE OF ARIZONA	)	 
	 	) ss	 
	COUNTY OF MARICOPA	)	 
	 	 	 
	On ____________________, before me, ____________________________________, a Notary Public in and for the State of Arizona, personally appeared ______________________, personally known to me (or proved to me on the basis of satisfactory evidence) to be the person whose name is subscribed to the within instrument and acknowledged to me that he/she executed the same in his/her authorized capacity, and that by his/her signature on the instrument the person, or IMH Financial Corporation, a Delaware corporation upon behalf of which _______________________________ acted, executed the instrument.
	
         

         

        ______________________________________

        Signature
	
         

         

	
        My Commission Expires:

         
	(Space above for official notarial seal)

 

Assignment and Assumption of Declarant’s
Rights – Signature

 

    	2

    	 

     

EXHIBIT A

 

LEGAL DESCRIPTION

 

(LaMerra)

 

THE LAND REFERRED TO HEREIN BELOW IS SITUATED
IN THE COUNTY OF YAVAPAI, STATE OF ARIZONA, AND IS DESCRIBED AS FOLLOWS:

 

PARCEL NO. 1:

 

THE NORTH HALF OF THE NORTHEAST QUARTER OF SECTION 34, TOWNSHIP
17 NORTH, RANGE 5 EAST OF THE GILA AND SALT RIVER BASE AND MERIDIAN, YAVAPAI COUNTY, ARIZONA;

 

EXCEPT BEGINNING AT A POINT IN THE SOUTHERLY LINE OF SAID LAND,
WHICH POINT IS DISTANT 650 FEET EASTERLY ALONG SAID SOUTHERLY LINE FROM THE SOUTHWEST CORNER OF SAID LAND;

 

THENCE WESTERLY ALONG SAID SOUTHERLY LINE TO THE SOUTHWEST CORNER
OF SAID LAND;

 

THENCE NORTHERLY ALONG THE WESTERLY LINE OF SAID LAND, A DISTANCE
OF 670 FEET;

 

THENCE SOUTHEASTERLY IN A DIRECT LINE TO THE POINT OF BEGINNING.

 

PARCEL NO. 2:

 

THE SOUTHEAST QUARTER OF THE SOUTHEAST QUARTER (BEING LOT 13)
OF SECTION 27, TOWNSHIP 17 NORTH, RANGE 5 EAST OF THE GILA AND SALT RIVER BASE AND MERIDIAN, YAVAPAI COUNTY, ARIZONA.

 

PARCEL NO.3:

 

ALL THAT PORTION OF THE SOUTHEAST QUARTER OF SECTION 27, TOWNSHIP
17 NORTH, RANGE 5 EAST OF THE GILA AND SALT RIVER BASE AND MERIDIAN, YAVAPAI COUNTY, ARIZONA, DESCRIBED AS FOLLOWS:

 

BEGINNING AT THE SOUTH QUARTER CORNER OF SAID SECTION 27, MARKED
BY A G.L.O. BRASS CAP;

 

THENCE NORTH 2 DEGREES 37 MINUTES 30 SECONDS WEST, 115.90 FEET
TO AN EXISTING FENCE;

 

THENCE NORTH 89 DEGREES 24 MINUTES 50 SECONDS EAST, ALONG SAID
FENCE, 204.31 FEET;

 

THENCE SOUTH 2 DEGREES 37 MINUTES 30 SECONDS EAST TO A POINT
ON THE SOUTH LINE OF SAID SECTION 27;

 

Assignment and Assumption of Declarant’s
Rights – Ex. A

 

    	 

    	 

     

THENCE SOUTH 89 DEGREES 00 MINUTES WEST, ALONG SAID SECTION
LINE TO THE ACTUAL POINT OF BEGINNING.

 

PARCEL NO.4:

 

THAT PORTION OF THE SOUTHEAST QUARTER OF THE SOUTHWEST QUARTER
OF SECTION 27, TOWNSHIP 17 NORTH, RANGE 5 EAST OF THE GILA AND SALT RIVER BASE AND MERIDIAN, YAVAPAI COUNTY, ARIZONA, LYING EASTERLY
OF A LINE LOCATED 100 FEET WEST OF AND PARALLEL TO SAID EAST LINE OF THE SOUTHWEST QUARTER, AND SOUTH OF A LINE HAVING A COURSE
OF NORTH 85 DEGREES 13 MINUTES EAST THROUGH A POINT THAT LIES NORTH 2 DEGREES 37 MINUTES 30 SECONDS WEST, 118.5 FEET FROM THE SOUTH
QUARTER CORNER OF SECTION 27 MARKED BY A G.L.O. BRASS CAP.

 

PARCEL NO. 5:

 

ALL THAT PORTION OF THE SOUTHWEST QUARTER OF THE SOUTHEAST QUARTER
OF SECTION 27, TOWNSHIP 17 NORTH, RANGE 5 EAST OF THE GILA AND SALT RIVER BASE AND MERIDIAN, YAVAPAI COUNTY, ARIZONA, LYING SOUTHERLY
OF AND CONTIGUOUS TO THE FOLLOWING DESCRIBED BOUNDARY LINE:

 

FROM THE NORTHEAST CORNER OF THE QUIT CLAIM PARCEL OF LAND DESCRIBED
AS BOOK 938 OF OFFICIAL RECORDS, PAGE 57, YAVAPAI COUNTY RECORDERS OFFICE, THE TRUE POINT OF BEGINNING, SAID CORNER LYING ON THE
EAST-WEST BARBED WIRE FENCE AS SHOWN ON THE RECORD OF SURVEY RECORDED AS BOOK 17 OF LAND SURVEYS AT PAGE 17, AND ALSO ON THE SOUTHERLY
LINE OF THE MONTERASTELLI (SIC) BOUNDARY AS SHOWN ON RESULTS OF SURVEY BY PATRICK NEVILLE, RECORDED AS BOOK 16, AT PAGE 100, DATED
JULY 14, 1992;

 

THENCE SOUTH 89 DEGREES 53 MINUTES 02 SECONDS EAST, ALONG THE
FENCE AND ITS EASTERLY EXTENSION AND ALONG THE SOUTHERLY LINE OF THE MONTERASTELLI BOUNDARY, 791.99 FEET;

 

THENCE SOUTH 41 DEGREES 19 MINUTES 24 SECONDS EAST, 39.09 FEET
TO THE SOUTH LINE OF SECTION 27, PER THE ARIZONA ENGINEERING COMPANY RECORD OF SURVEY RECORDED AS BOOK 10 OF RECORDS OF SURVEY,
AT PAGE 99;

 

THENCE SOUTH 88 DEGREES 14 MINUTES 32 SECONDS EAST, ALONG THE
SOUTH LINE OF SECTION 27, 75.15 FEET;

 

THENCE SOUTH 73 DEGREES 27 MINUTES 42 SECONDS EAST, 55.92 FEET;

 

THENCE NORTH 22 DEGREES 46 MINUTES 34 SECONDS EAST, 11.20 FEET;

 

THENCE NORTH 87 DEGREES 02 MINUTES 45 SECONDS EAST, 21.97 FEET;

 

THENCE SOUTH 81 DEGREES 16 MINUTES 09 SECONDS EAST, 29.96 FEET;

 

THENCE SOUTH 65 DEGREES 43 MINUTES 54 SECONDS EAST, 22.05 FEET
TO THE EAST LINE OF THE NORTHWEST QUARTER OF THE NORTHEAST QUARTER OF SECTION 34, WHICH IS THE POINT OF TERMINUS OF THE BOUNDARY
LINE;

 

Assignment and Assumption of Declarant’s
Rights – Ex. A

 

    	2

    	 

     

THE BASIS OF BEARINGS FOR THIS DESCRIPTION IS SOUTH 88 DEGREES
14 MINUTES 32 SECONDS EAST, FROM THE SOUTH QUARTER CORNER OF SECTION 27 TO THE SOUTHEAST CORNER OF SECTION 27, ACCORDING TO THE
ARIZONA ENGINEERING COMPANY RESULTS OF SURVEY RECORDED AS BOOK 10 OF RECORDS OF SURVEYS, AT PAGE 99, YAVAPAI COUNTY RECORDERS OFFICE.

 

PARCEL NO. 6:

 

EASEMENT FOR ROADWAY FOR INGRESS AND EGRESS FOR THE PURPOSE
OF TRAVEL AND MAINTENANCE AS CREATED IN BOOK 3833, OF OFFICIAL RECORDS, PAGE 934, BEING 50 FEET WIDE, LYING 30 FEET ON THE WESTERLY
AND SOUTHERLY SIDES AND 20 FEET ON THE EASTERLY AND NORTHERLY SIDES OF THE FOLLOWING DESCRIBED PROPERTY:

 

THE CENTERLINE OF AN EXISTING DIRT ROAD IN SECTION 27, TOWNSHIP
17 NORTH, RANGE 5 EAST OF THE GILA AND SALT RIVER BASE AND MERIDIAN, YAVAPAI COUNTY, ARIZONA, MORE PARTICULARLY DESCRIBED BY METES
AND BOUNDS AS FOLLOWS:

 

FROM THE SOUTHWEST CORNER OF SECTION 27;

 

THENCE NORTH 86 DEGREES 13 MINUTES 45 SECONDS EAST, A DISTANCE
OF 2448.25 FEET TO A CONCRETE MONUMENT MARKED 1/4 ON THE WEST FACE, WITH AN ALUMINUM CAP MARKED LS 13010, ACCEPTED BY JOHN A. LUCKOW,
ARIZONA REGISTERED LAND SURVEYOR, AS THE TRUE LOCATION OF THE SOUTH QUARTER CORNER OF RECORD OF SURVEY DATED FEBRUARY 24, 1990,
RECORDED IN BOOK 10 OF LAND SURVEYORS, PAGE 99, YAVAPAI COUNTY RECORDERS OFFICE, WHICH IS IDENTICAL TO THE SOUTHEAST CORNER OF
THE PROPERTY AS CONVEYED TO HARRIET KOHLER (ALSO KNOWN AS HARRIET K. SEAMAN) BY INSTRUMENTS RECORDED IN THE OFFICE OF THE RECORDER
OF YAVAPAI COUNTY, ARIZONA, IN BOOK 179 OF DEEDS, PAGE 586 AND IN BOOK 357 OF OFFICIAL RECORDS, PAGE 233 AND WHICH IS ALSO IDENTICAL
TO THE NORTHEAST CORNER OF PARCEL 4 ABOVE, ACCEPTED AND UTILIZED AS THE QUARTER CORNER BETWEEN SECTIONS 27 AND 34, PRIOR TO THE
1956 GLO DEPENDENT RESURVEY OF SECTION 27 BY WHICH THE QUARTER CORNER BETWEEN SECTIONS 27 AND 35 HAS BEEN MARKED BY A STANDARD
GLO BRASS CAPPED PIPE, WHICH IS THE SAME GLO BRASS CAP ESTABLISHING THE SOUTHEAST CORNER OF THE PROPERTY DESCRIBED IN PARCEL 4
ABOVE;

 

THENCE SOUTH 85 DEGREES 13 MINUTES 00 SECONDS WEST, 15.05 FEET,
TO THE TRUE POINT OF BEGINNING OF THIS DESCRIPTION:

 

THENCE NORTH 07 DEGREES 16 MINUTES 03 SECONDS
EAST, 55.48 FEET;

 

THENCE NORTH 00 DEGREES 25 MINUTES 35 SECONDS EAST, 201.21 FEET
TO THE EAST LINE OF THE KOHLER PARCEL AS DESCRIBED IN WARRANTY DEED RECORDED IN BOOK 179 OF DEEDS, PAGE 586, YAVAPAI COUNTY RECORDERS
OFFICE, STATE OF ARIZONA;

 

THENCE NORTH 00 DEGREES 25 MINUTES 35 SECONDS EAST, 283.79 FEET
TO THE P.C. OF A CURVE, HAVING A RADIUS OF 215.00 FEET AND A CENTRAL ANGLE OF 18 DEGREES 55 MINUTES 40 SECONDS;

 

THENCE NORTHERLY ALONG A CURVE TO THE LEFT, AN ARC DISTANCE
OF 71.03 FEET, TO THE EAST LINE OF THE KOHLER PARCEL AND THE BEGINNING OF A CURVE, HAVING A RADIUS OF 215.00 FEET AND A CENTRAL
ANGLE OF 18 DEGREES 53 MINUTES 55

SECONDS;

 

THENCE NORTHERLY ALONG A CURVE TO THE LEFT, AN ARC DISTANCE
OF 70.92 FEET TO THE PT.;

 

Assignment and Assumption of Declarant’s
Rights – Ex. A

 

    	3

    	 

     

THENCE NORTH 37 DEGREES 24 MINUTES 00 SECONDS WEST, 164.52 FEET
TO THE P.C. OF A CURVE, HAVING A RADIUS OF 130.00 FEET AND A CENTRAL ANGLE OF 07 DEGREES 11 MINUTES 55 SECONDS;

 

THENCE NORTHWESTERLY ALONG A CURVE TO THE LEFT, AN ARC DISTANCE
OF 16.33 FEET TO THE NORTH LINE OF THE KOHLER PARCEL AND THE BEGINNING OF A CURVE, HAVING A RADIUS OF 130.00 FEET AND A CENTRAL
ANGLE OF 32 DEGREES 59 MINUTES 56 SECONDS;

 

THENCE NORTHWESTERLY ALONG A CURVE TO THE LEFT, AN ARC DISTANCE
OF 74.87 FEET TO THE P.T.;

 

THENCE NORTH 77 DEGREES 35 MINUTES 51 SECONDS WEST, 92.01 FEET
TO THE P.C. OF A CURVE, HAVING A RADIUS OF 250.00 FEET AND A CENTRAL ANGLE OF 10 DEGREES 44 MINUTES 58 SECONDS;

 

THENCE WESTERLY ALONG A CURVE TO THE LEFT, AN ARC DISTANCE OF
46.90 FEET TO THE NORTH LINE OF THE KOHLER PARCEL AND THE BEGINNING OF A CURVE, HAV1NG A RADIUS OF 250.00 FEET AND A CENTRAL ANGLE
OF 10 DEGREES 51 MINUTES 24

SECONDS;

 

THENCE WESTERLY ALONG A CURVE TO THE LEFT, AN ARC DISTANCE OF
47.37 FEET TO THE P.T.;

 

THENCE SOUTH 80 DEGREES 47 MINUTES 47 SECONDS WEST, 160.95 FEET;

 

THENCE SOUTH 84 DEGREES 31 MINUTES 30 SECONDS WEST, 60.56 FEET
TO THE TERMINUS OF THIS DESCRIPTION AT THE WEST LINE OF THE KOHLER PARCEL, THE NORTHWEST CORNER OF WHICH BEARS NORTH 01 DEGREES
01 MINUTES 44 SECONDS WEST, A DISTANCE OF 116.37 FEET.

 

PARCEL NO. 7:

 

EASEMENT FOR IRRIGATION DITCH PURPOSES AS CREATED IN BOOK 2250,
OF OFFICIAL RECORDS, PAGE 382, OVER AND ACROSS THE REAL PROPERTY DESCRIBED BELOW. THE CENTERLINE OF THE EASEMENT IS THE CENTERLINE
OF THE EXISTING DITCH AND THE EASEMENT IS OF THE WIDTH REASONABLY NECESSARY FOR THE MAINTENANCE AND OPERATION OF THE DITCH.

 

REAL PROPERTY WHICH EASEMENT CROSSES IS DESCRIBED AS FOLLOWS:

 

THE FOLLOWING DESCRIBED PORTION OF THE EAST HALF OF THE SOUTHEAST
QUARTER OF THE SOUTHWEST QUARTER OF SECTION 27, TOWNSHIP 17 NORTH OF RANGE 5 EAST OF THE GILA AND SALT RIVER BASE AND MERIDIAN,
YAVAPAI COUNTY, ARIZONA, TO WIT:

 

BEGINNING AT THE QUARTER CORNER BETWEEN SECTIONS 27 AND 34,
ABOVE TOWNSHIP AND RANGE, SAID CORNER BEING MARKED BY A STONE MONUMENT, WHICH WAS ACCEPTED BY JIM LAMPORT, SURVEYOR IN 1928, AND
BY OLD SETTLERS FOR MANY YEARS;

 

THENCE FROM SAID POINT NORTH ON THE QUARTER SECTION LINE THROUGH
THE CENTER OF SAID SECTION 27, (THIS LINE BEING ASSUMED NORTH FOR THE PURPOSE OF THIS DESCRIPTION) 774.0 FEET TO A STONE MONUMENT;

 

Assignment and Assumption of Declarant’s
Rights – Ex. A

 

    	4

    	 

     

THENCE NORTH 73 DEGREES 34 MINUTES WEST, 659.6 FEET TO A STONE
MONUMENT;

 

THENCE SOUTH 03 DEGREES 45 MINUTES WEST, 1021.3 FEET TO A STONE
MONUMENT ON THE SOUTH LINE OF Said) SECTION 27;

 

THENCE NORTH 85 DEGREES 13 MINUTES EAST, 701.9 FEET ALONG SAID
SECTION LINE TO THE POINT OF BEGINNING.

 

PARCEL NO. 8:

 

A NON-EXCLUSIVE EASEMENT FOR ROADWAY AND UTILITY PURPOSES OVER,
ACROSS AND UNDER THE FOLLOWING DESCRIBED PARCEL:

 

A PORTION OF THE SOUTHWEST QUARTER OF THE SOUTHEAST QUARTER
OF SECTION 27, TOWNSHIP 17 NORTH, RANGE 5 EAST OF THE GILA AND SALT RIVER BASE AND MERIDIAN, YAVAPAI COUNTY, ARIZONA;

 

BEGINNING AT A POINT ON THE WEST LINE OF THE SOUTHWEST QUARTER
OF THE SOUTHEAST QUARTER OF SECTION 27 BEARING NORTH 01 DEGREES 29 MINUTES 54 SECONDS WEST, A DISTANCE OF 600 FEET FROM THE SOUTH
QUARTER CORNER OF SECTION 27 MARKED BY A G.L.O. BRASS CAP;

 

THENCE NORTH 01 DEGREES 29 MINUTES 54 SECONDS WEST ALONG THE
WEST LINE OF THE SOUTHWEST QUARTER OF THE SOUTHEAST QUARTER OF SECTION 27, A DISTANCE OF 180.05 FEET;

 

THENCE SOUTH 35 DEGREES 58 MINUTES 39 SECONDS EAST, A DISTANCE
OF 44.71 FEET;

 

THENCE SOUTH 0 DEGREES 48 MINUTES 45 SECONDS WEST, A DISTANCE
OF 143.31 FEET;

 

THENCE SOUTH 88 DEGREES 30 MINUTES 06 SECONDS WEST, A DISTANCE
OF 19.54 FEET TO THE PLACE OF BEGINNING.

 

PARCEL NO. 9:

 

A NON-EXCLUSIVE EASEMENT FOR ROADWAY AND UTILITY PURPOSES AS
CREATED IN BOOK 938 OF OFFICIAL RECORDS, PAGE 65, OVER, ACROSS AND UNDER THE FOLLOWING DESCRIBED PARCELS:

 

PARCEL A:

 

THE FOLLOWING DESCRIBED PORTION OF THE SOUTHWEST QUARTER OF
THE SOUTHEAST QUARTER OF SECTION 27, TOWNSHIP 17 NORTH, RANGE 5 EAST OF THE GILA AND SALT RIVER BASE AND MERIDIAN, YAVAPAI COUNTY,
ARIZONA;

 

BEGINNING AT A POINT ON THE WEST LINE OF THE SOUTHWEST QUARTER
OF THE SOUTHEAST QUARTER OF SECTION 27 BEARING NORTH 01 DEGREES 29 MINUTES 54 SECONDS WEST, A DISTANCE OF 115.84 FEET FROM THE
SOUTH QUARTER CORNER OF SECTION 27, MARKED BY A G.L.O. BRASS CAP;

 

Assignment and Assumption of Declarant’s
Rights – Ex. A

 

    	5

    	 

     

THENCE NORTH 01 DEGREES 29 MINUTES 54 SECONDS WEST ALONG THE
WEST LINE OF THE SOUTHWEST QUARTER OF THE SOUTHEAST QUARTER OF SECTION 27, A DISTANCE OF 484.16 FEET;

 

THENCE NORTH 88 DEGREES 30 MINUTES 06 SECONDS EAST, A DISTANCE
OF 19.54 FEET;

 

THENCE SOUTH 0 DEGREES 48 MINUTES 45 SECONDS WEST, A DISTANCE
OF 484.55 FEET TO THE PLACE OF BEGINNING.

 

PARCEL B:

 

A PORTION OF THE EAST HALF OF THE SOUTHEAST QUARTER OF THE SOUTHWEST
QUARTER OF SECTION 27, TOWNSHIP 17 NORTH, RANGE 5 EAST OF THE GILA AND SALT RIVER BASE AND MERIDIAN, YAVAPAI COUNTY, ARIZONA;

 

BEGINNING AT A POINT ON THE EAST LINE OF THE SOUTHEAST QUARTER
OF THE SOUTHWEST QUARTER OF SECTION 27 BEARING NORTH 01 DEGREES 29 MINUTES 54 SECONDS WEST, A DISTANCE OF 889.73 FEET FROM THE
SOUTH QUARTER CORNER OF SECTION 27 MARKED BY A G.L.O. BRASS CAP;

 

THENCE NORTH 73 DEGREES 03 MINUTES 08 SECONDS WEST, A DISTANCE
OF 103.00 FEET TO THE TRUE POINT OF BEGINNING;

 

THENCE NORTH 73 DEGREES 03 MINUTES 08 SECONDS WEST, A DISTANCE
OF 303.41 FEET. (THE DIRECTION AND LOCATIONS OF THE ABOVE LINE DETERMINED BY STONE MONUMENTS AS CALLED FOR IN THAT CERTAIN DEED
OF CORRECTION OF RECORD IN THE OFFICE OF THE COUNTY RECORDER, YAVAPAI COUNTY, ARIZONA, IN BOOK 172 OF DEEDS, PAGE 495 THEREOF);

 

THENCE NORTH 82 DEGREES 32 MINUTES 53 SECONDS EAST, A DISTANCE
OF 67.32 FEET;

 

THENCE SOUTH 75 DEGREES 10 MINUTES 23 SECONDS EAST, A DISTANCE
OF 195.82 FEET;

 

THENCE SOUTH 35 DEGREES 58 MINUTES 39 SECONDS EAST, A DISTANCE
OF 58.16 FEET TO THE PLACE OF BEGINNING.

 

PARCEL NO. 10:

 

A NON-EXCLUSIVE EASEMENT FOR ROADWAY AND PUBLIC UTILITY PURPOSES
AS CREATED IN BOOK 1920 OF OFFICIAL RECORDS, PAGE 314, EMBRACING ALL OF THE FOLLOWING DESCRIBED PROPERTY:

 

A PARCEL OF LAND LYING IN THE SOUTHWEST QUARTER OF SECTION 27,
TOWNSHIP 17 NORTH, RANGE 5 EAST OF THE GILA AND SALT RIVER BASE AND MERIDIAN, YAVAPAI COUNTY, ARIZONA, BEING MORE PARTICULARLY
DESCRIBED AS FOLLOWS:

 

BEGINNING AT THE SOUTH QUARTER CORNER OF SECTION 27, TOWNSHIP
17 NORTH, RANGE 5 EAST;

 

THENCE SOUTH 88 DEGREES 53 MINUTES 57 SECONDS WEST, A DISTANCE
OF 612.24 FEET TO THE SOUTHEAST CORNER OF THE SOUTHWEST QUARTER OF THE SOUTHEAST QUARTER OF THE SOUTHWEST QUARTER OF SECTION 27;

 

Assignment and Assumption of Declarant’s
Rights – Ex. A

 

    	6

    	 

     

THENCE NORTH 01 DEGREES 11 MINUTES 29 SECONDS WEST, A DISTANCE
OF 946.77 FEET TO THE TRUE POINT OF BEGINNING;

 

THENCE SOUTH 85 DEGREES 55 MINUTES 21 SECONDS WEST, A DISTANCE
OF 113.99 FEET;

 

THENCE NORTH 24 DEGREES 08 MINUTES 42 SECONDS WEST, A DISTANCE
OF 61.87 FEET TO A POINT ON A CURVE HAVING A CENTRAL ANGLE OF 141 DEGREES 20 MINUTES 20 SECONDS, A RADIUS OF 131.79 FEET;

 

THENCE ALONG THE ARC OF SAID CURVE, A DISTANCE
OF 50.30 FEET;

 

THENCE SOUTH 24 DEGREES 08 MINUTES 42 SECONDS
EAST, A DISTANCE OF 26.91 FEET;

 

THENCE NORTH 85 DEGREES 55 MINUTES 21 SECONDS EAST, A DISTANCE
OF 81.55 FEET;

 

THENCE SOUTH 01 DEGREES 11 MINUTES 29 SECONDS EAST, A DISTANCE
OF 50.06 FEET TO THE TRUE POINT OF BEGINNING.

 

TOGETHER WITH THE RIGHT TO IMPROVE AND MAINTAIN THE EXISTING
ROAD AND TO RECONSTRUCT AND ENLARGE THE ROAD TO UTILIZE ALL OF THE EASEMENT PROPERTY OR ANY PART THEREOF FOR ROADWAY PURPOSES.

 

PARCEL NO. 11:

 

AN EASEMENT APPURTENANT TO PARCELS 1, 2, 3, 4 AND 5 ABOVE, FOR
ROADWAY AND PUBLIC UTILITIES CREATED IN BOOK 1920, OF OFFICIAL RECORDS, PAGE 307, OVER THAT PORTION OF THE RED ROCK LOOP ROAD DESCRIBED
IN THE ATTACHMENT TO THE INSTRUMENT OF RECORD IN BOOK 915, OF OFFICIAL RECORDS, PAGES 795-803, INCLUSIVE, RECORDS OF YAVAPAI COUNTY,
ARIZONA, LYING WITHIN THE EAST ONE-HALF, WEST ONE-HALF, SOUTHEAST QUARTER, SOUTHWEST QUARTER, SECTION 27, TOWNSHIP 17 NORTH, RANGE
5 EAST OF THE GILA AND SALT RIVER BASE AND MERIDIAN, YAVAPAI COUNTY, ARIZONA.

 

EXCEPTING FROM THE ABOVE PARCELS THE FOLLOWING PROPERTY:

Lot 11, THE RETREAT AT OAK CREEK, according to Book 59 of Maps,
pages 99 through 104, inclusive, records of Yavapai County, Arizona.

 

AND

 

Lots 2, 9, 10, 12, 13, 14, 17, 18 and 19, LAMERRA, according
to Book 61 of Maps, pages 27 through 32, inclusive, records of Yavapai County, Arizona.

 

Assignment and Assumption of Declarant’s
Rights – Ex. A

 

    	7

    	 

     

 

 

Exhibit 3(m)

 

Title Disputes

 

All such Title Disputes are reflected
on Schedule 3(d)

 

    	 

    	 

     

 

 

 

 

Exhibit 3(n)

 

Tax Liabilities

 

Not submitted by Conveying Parties

 

 

    	 

    	 

     

 

 

Exhibit 3(p)

 

Actual or Threatened Claims with Respect
to All Properties

 

See Schedule 3(d)

 

    	 

    	 

     

 

 

 

Exhibit 3(q)

 

Transactions with
Related Parties

Not submitted by Conveying Parties

 

 

    	 

    	 

     

 

 

 

 

 

 

Non-Transferring Assets

 

(Exhibit 3(u))

 

(2)Western Paintings/Pictures located in sitting room of
Cottage #5

 

(1) Western Painting/Picture located in bedroom of Cottage #5
(1)

 

Indian Painting/Picture located in the Veranda Bar

 

(3)Board Tables approximately 42" X 96" Mahogany
in color

 

(6) Herman Miller Aeron Desk Chairs

 

(1) Credenza w/ bookcase top, Mahogany in color

 

(1)Filing cabinet w/ bookcase top, Mahogany in color

 

(2)Book shelves, Mahogany in color

 

    	 

    	 

     

 

 

 

Exhibit 3(x)(i)

 

L'Auberge de Sedona LLC
Employees

 

	Employee Name (Last, First) *	FT or PT	Job Title	Employment Start Date	Hrly Pay Rate *	Current Accrued Unused PTO Hours
	XXXXXXXXXXXXXXXXXX	Full-time Regular	Housekeeping Public Area	02/27/2013	XXXXXX	0.00
	XXXXXXXXXXXXXXXXXXX	Full-time Regular	Server	08/14/2008	XXXXX	4.25
	XXXXXXXXXXXXXXXXX	Full-time Regular	Spa Supervisor	12/31/2009	XXXXXX	87.37
	XXXXXXXXXXXXXXXX	Full-time Regular	General Manager	12/05/2005	XXXXXX	180.00
	XXXXXXXXXXXXXX	Full-time Regular	Server	05/02/2012	XXXXX	19.34
	XXXXXXXXXXXXX	Full-time Regular	Cook I	03/12/2013	XXXXXX	0.00
	XXXXXXXXXXXXXXXX	Full-time Regular	Reverationist	08/10/2006	XXXXXX	99.78
	XXXXXXXXXXXXXXXXXXXXXXXXXX	Full-time Regular	Cook I	04/11/2011	XXXXXX	25.78
	XXXXXXXXXXXXXX	Part-time Regular	Banquet Server	10/31/2011	XXXXX	.62
	XXXXXXXXXXXXXX	Full-time Regular	Coordinator	09/21/2009	XXXXXX	38.60
	XXXXXXXXXXXXXX	Full-time Regular	Engineer Ii	03/31/2010	XXXXXX	36.93
	XXXXXXXXXXXXXXXXX	Full-time Regular	Sales Coordinator	05/13/2009	XXXXXX	12.17
	XXXXXXXXXXXXXXXXX	Full-time Regular	Engineer I	02/21/2006	XXXXXX	136.73
	XXXXXXXXXXXXXXXXXXXX	Full-time Regular	Bartender	02/25/2010	XXXXX	68.33
	XXXXXXXXXXXXXXXX	Full-time Regular	Spa Housekeeping	01/16/2013	XXXXX	0.00
	XXXXXXXXXXXXX	Full-time Regular	Reverationist	07/11/2012	XXXXXX	15.66
	XXXXXXXXXXXXXXXXXXXXXX	Full-time Regular	Valet Supervisor	02/23/2009	XXXXXX	32.77
	XXXXXXXXXXXXXXXXXXXXXXXXXXXXXX	Full-time Regular	Cashier/greeter	01/16/2013	XXXXXX	0.00
	XXXXXXXXXXX	Full-time Regular	Concierge	06/30/2010	XXXXXX	45.80
	XXXXXXXXXXXXXX	Full-time Regular	Busser	03/28/2012	XXXXX	33.88
	XXXXXXXXXXXXXX	Full-time Regular	Banquet House Attendant	04/05/2012	XXXXX	13.76
	XXXXXXXXXXXXXX	Full-time Regular	Rest General Manager/ Asst. Mgr	03/02/2011	XXXXXX	51.84
	XXXXXXXXXXXXXXXXXX	Full-time Regular	Security Guard	03/16/2011	XXXXXX	47.10
	XXXXXXXXXXXXXXX	Part-time Regular	Banquet Server	07/28/2010	XXXXX	0.00
	XXXXXXXXXXXXXXXXXXX	Full-time Regular	Expeditor	03/27/2013	XXXXX	0.00
	XXXXXXXXXXXXXXXX	Full-time Regular	Turn Down Attendant	02/18/2013	XXXXX	.61
	XXXXXXXXXXXXX	Full-time Regular	Cook I	09/12/2012	XXXXXX	0.00
	XXXXXXXXXXXXXXXX	Full-time Regular	Valet	06/03/2011	XXXXXX	22.48
	XXXXXXXXXXXXXXXXXXXXXX	Full-time Regular	Valet	09/26/2012	XXXXXX	3.20
	XXXXXXXXXXXXXXXXXXX	Full-time Regular	Lead Room Attendant	04/11/2012	XXXXXX	27.96
	XXXXXXXXXXXXXXXX	Full-time Regular	Busser	10/12/2007	XXXXX	171.56
	XXXXXXXXXXXXXXXX	Full-time Regular	Warewasher/dishwasher	09/10/2012	XXXXXX	11.84
	XXXXXXXXXXXXXX	Full-time Regular	Expeditor	03/28/2012	XXXXX	26.55
	XXXXXXXXXXXXXXXXX	Full-time Regular	Spa Housekeeping	02/11/2013	XXXXX	0.00
	XXXXXXXXXXXXXXXXXXXXXXX	Full-time Regular	PBX	04/03/2013	XXXXXX	0.00
	XXXXXXXXXXXXXXX	Full-time Regular	Rest General Manager/ Asst. Mgr	09/15/2010	XXXXXX	57.76
	XXXXXXXXXXXXXXXXX	Part-time Regular	Cashier/greeter	08/15/2012	XXXXXX	4.81
	XXXXXXXXXXXXXXXXXXXXXX	Full-time Regular	Reverationist	01/12/2011	XXXXXX	0.00
	XXXXXXXXXXXXXXXXXXX	Full-time Regular	Sales Manager	05/01/2006	XXXXXX	111.78
	XXXXXXXXXXXX	Full-time Regular	Cook I	03/12/2013	XXXXXX	0.00
	XXXXXXXXXXXXXXXXXXXX	Full-time Regular	Room Attendant	03/12/2013	XXXXX	0.00
	XXXXXXXXXXXXXXXX	Full-time Regular	Exe Chef/Asst K Mgr/Sous Chef	05/02/2012	XXXXXX	23.44
	XXXXXXXXXXXXXX	Full-time Regular	Spa Therapist	04/06/2011	XXXXX	6.54
	XXXXXXXXXX	Part-time Regular	Cook I	08/16/2012	XXXXXX	0.00
	XXXXXXXXXXXXXXX	Full-time Regular	PBX	06/29/2007	XXXXXX	36.50
	XXXXXXXXXXXXXXXXXXXX	Full-time Regular	PBX	02/06/2013	XXXXXX	0.00
	XXXXXXXXXXXXXXXXXX	Full-time Regular	Spa Manager	10/03/2011	XXXXXX	21.64
	XXXXXXXXXXXXXXXXXXX	Full-time Regular	Bartender	03/27/2013	XXXXX	0.00
	XXXXXXXXXXXXXXXXXXXX	Full-time Regular	Valet	09/21/2011	XXXXXX	44.46
	XXXXXXXXXXXXXX	Full-time Regular	Server	03/20/2000	XXXXX	74.73
	XXXXXXXXXXXXX	Full-time Regular	Busser	04/11/2012	XXXXX	11.83
	XXXXXXXXXXXXXXX	Part-time Regular	Banquet Bartender	09/14/2011	XXXXX	0.00
	XXXXXXXXXXXXXX	Full-time Regular	Server	07/07/2010	XXXXX	69.07
	XXXXXXXXXXXXX	Full-time Regular	Expeditor	02/01/2012	XXXXX	43.80
	XXXXXXXXXXXXXXXX	Full-time Regular	Cook I	04/01/2009	XXXXXX	9.41
	XXXXXXXXXXXXXX	Full-time Regular	Room Attendant	02/13/2013	XXXXX	0.00
	XXXXXXXXXXXXXX	Full-time Regular	Warewasher/dishwasher	10/10/2012	XXXXXX	9.69
	XXXXXXXXXXXXXXXX	Full-time Regular	House Attendant	04/05/2012	XXXXXX	3.00
	XXXXXXXXXXXX	Full-time Regular	Sales Manager	05/30/2012	XXXXXX	14.80

 

	* Confidential information on this
    page has been omitted and filed separately with the Securities and Exchange Commission pursuant to a Confidential Treatment
    Request.

  

    	 

    	 

     

	Employee Name (Last, First) *	FT or PT	Job Title	Employment Start Date	Hrly Pay Rate *	Current Accrued Unused PTO Hours
	XXXXXXXXXXXXXXXX	Full-time Regular	Sales Manager	05/30/2012	XXXXXX	17.28
	XXXXXXXXXXXXX	Full-time Regular	Pastry Chef	08/15/2012	XXXXXX	17.97
	XXXXXXXXXXXXXXX	Full-time Regular	Lead Groundsmen	12/07/2009	XXXXXX	104.16
	XXXXXXXXXXXXXX	Full-time Regular	Cook I	07/19/2001	XXXXXX	99.47
	XXXXXXXXXXXXXX	Full-time Regular	Valet Supervisor	02/29/2012	XXXXXX	20.24
	XXXXXXXXXXXXXXXXXXXXXXX	Full-time Regular	Spa Therapist	04/01/2013	XXXXX	0.00
	XXXXXXXXXXXXXXXXX	Part-time Regular	Spa Therapist	03/06/2013	XXXXX	0.00
	XXXXXXXXXXXXXXX	Part-time Regular	Turn Down Attendant	03/07/2013	XXXXX	0.00
	XXXXXXXXXXXX	Full-time Regular	Laundry Attendant	03/12/2013	XXXXX	0.00
	XXXXXXXXXXXXXX	Full-time Regular	Security Guard	03/20/2013	XXXXXX	0.00
	XXXXXXXXXXXXXXXXXXXX	Full-time Regular	Lead Room Attendant	05/11/2001	XXXXXX	45.07
	XXXXXXXXXXXXXXXXXX	Full-time Regular	Banquet House Attendant	12/24/2007	XXXXX	10.41
	XXXXXXXXXXXXXXX	Full-time Regular	Valet	04/25/2012	XXXXXX	21.47
	XXXXXXXXXXXXXXXXX	Full-time Regular	Expeditor	10/17/2012	XXXXX	1.31
	XXXXXXXXXXXXX	Full-time Regular	Reservationist Manager	08/18/2010	XXXXXX	26.31
	XXXXXXXXXXXX	Part-time Regular	Spa Therapist	08/15/2012	XXXXX	0.00
	XXXXXXXXXXXXX	Full-time Regular	Cook I	03/28/2012	XXXXXX	33.55
	XXXXXXXXXXXXXX	Full-time Regular	Night Auditor	05/21/2012	XXXXXX	7.33
	XXXXXXXXXXXXXX	Full-time Regular	Spa Therapist	07/18/2012	XXXXX	10.36
	XXXXXXXXXXXXXXXXXXXX	Full-time Regular	Busser	03/20/2013	XXXXX	0.00
	XXXXXXXXXXXXX	Full-time Regular	Exe Chef/Asst K Mgr/Sous Chef	08/29/2008	XXXXXX	89.88
	XXXXXXXXXXXXXXX	Full-time Regular	Busser	02/05/2001	XXXXX	10.26
	XXXXXXXXXXXXX	Full-time Regular	Valet	06/15/2011	XXXXXX	16.20
	XXXXXXXXXXXXXXX	Full-time Regular	Server	01/05/2006	XXXXX	68.16
	XXXXXXXXXXXXXXXXX	Full-time Regular	Guest Service Agent	01/30/2013	XXXXXX	.64
	XXXXXXXXXXXXXXXXXXXXX	Part-time Regular	Yoga Hours	02/20/2011	XXXXXX	14.25
	XXXXXXXXXXXXXXXXXXXXX	Part-time Regular	Spa Therapist	03/07/2012	XXXXX	0.00
	XXXXXXXXXXXXX	Full-time Regular	PBX	08/15/2012	XXXXXX	14.78
	XXXXXXXXXXXXXXXXXX	Part-time Regular	Banquet Server	05/02/2012	XXXXX	0.00
	XXXXXXXXXXXXXXX	Full-time Regular	Expeditor	02/29/2012	XXXXX	36.63
	XXXXXXXXXXXXXXXXXXXX	Full-time Regular	Night Auditor	12/18/2002	XXXXXX	96.51
	XXXXXXXXXXXXXXXX	Full-time Regular	Valet	11/02/2011	XXXXXX	17.39
	XXXXXXXXXXXXXX	Full-time Regular	Server	06/23/2010	XXXXX	8.51
	XXXXXXXXXXXXXXXX	Full-time Regular	Bellmen	02/24/2010	XXXXXX	78.99
	XXXXXXXXXXXXXXX	Full-time Regular	Reverationist	02/13/2013	XXXXXX	0.00
	XXXXXXXXXXXXXXXXXX	Full-time Regular	Warewasher/dishwasher	03/22/2013	XXXXXX	0.00
	XXXXXXXXXXXXXXXXXXXXXXXXX	Part-time Regular	Sales Coordinator	08/20/2009	XXXXXX	0.00
	XXXXXXXXXXXXXXXXXXX	Full-time Regular	Sales Coordinator	05/04/2005	XXXXXX	36.13
	XXXXXXXXXXXXXX	Full-time Regular	Turn Down Attendant	02/20/2013	XXXXX	0.00
	XXXXXXXXXXX	Full-time Regular	Rest Gen Mgr/ Asst. Mgr	04/30/2012	XXXXXX	55.44
	XXXXXXXXXXXXXXXXXX	Full-time Regular	Reverationist	01/09/2013	XXXXXX	0.00
	XXXXXXXXXXX	Full-time Regular	Bellmen	08/18/2001	XXXXXX	161.12
	XXXXXXXXXXXX	Part-time Regular	Banquet Server	08/17/2011	XXXXX	0.00
	XXXXXXXXXXXXXXXXX	Full-time Regular	Warewasher/dishwasher	04/03/2013	XXXXXX	0.00
	XXXXXXXXXXXXXXX	Full-time Regular	Spa Therapist	09/28/2011	XXXXX	21.16
	XXXXXXXXXXXXXXXXXXXXXX	Full-time Regular	Expeditor	02/15/2012	XXXXX	7.51
	XXXXXXXX	Full-time Regular	Banquet Manager	01/25/2012	XXXXXX	69.00
	XXXXXXXXXXXXXX	Part-time Regular	Spa Therapist	05/17/2010	XXXXX	0.00
	XXXXXXXXXXXXXX	Part-time Regular	Spa Therapist	09/12/2012	XXXXX	0.00
	XXXXXXXXXXXXXXX	Full-time Regular	Director	11/03/1999	XXXXXX	180.00
	XXXXXXXXXXXXXXXXXXXXX	Full-time Regular	Spa Therapist	01/25/2012	XXXXX	27.43
	XXXXXXXXXXXXX	Full-time Regular	Groundsmen	02/23/2011	XXXXXX	12.10
	XXXXXXXXXXXXXX	Full-time Regular	Lead Room Attendant	04/05/2012	XXXXXX	17.55
	XXXXXXXXXXXX	Part-time Regular	House Attendant	10/11/2012	XXXXX	18.11
	XXXXXXXXXXXXXXXXXXXX	Part-time Regular	Yoga Hours	04/15/2009	XXXXXX	0.00
	XXXXXXXXXXXX	Full-time Regular	Engineer I	02/08/2012	XXXXXX	26.76
	XXXXXXXXXXXXXXXXX	Full-time Regular	Security Guard	08/11/2010	XXXXXX	13.17
	XXXXXXXXXXXXXXXXXX	Full-time Regular	Expeditor	04/21/2010	XXXXX	32.52
	XXXXXXXXXXXXX	Full-time Regular	Service Agent Supervisor	05/16/2012	XXXXXX	30.54
	XXXXXXXXXXXX	Full-time Regular	Server	10/18/2007	XXXXX	39.15
	XXXXXXXXXXXXXXXXXXXX	Full-time Regular	Cook I	04/03/2013	XXXXXX	0.00
	XXXXXXXXXXXXXXXXXXX	Full-time Regular	Server	10/15/2008	XXXXX	119.67
	XXXXXXXXXXXXX	Part-time Regular	Spa Therapist	09/29/2010	XXXXX	0.00
	XXXXXXXXXXXXXXXXXXXXXXX	Full-time Regular	Spa Guest Service Agent	04/03/2013	XXXXXX	0.00
	XXXXXXXXXXXXX	Full-time Regular	Housekeeping Public Area	06/08/2011	XXXXX	9.00

 

	* Confidential information on this
    page has been omitted and filed separately with the Securities and Exchange Commission pursuant to a Confidential Treatment
    Request.

  

    	 

    	 

     

	Employee Name (Last, First) *	FT or PT	Job Title	Employment Start Date	Hrly Pay Rate *	Current Accrued Unused PTO Hours
	XXXXXXXXXXXXXXXX	Full-time Regular	Groundsmen	02/08/2012	XXXXXX	18.76
	XXXXXXXXXXXXXXXXXXX	Full-time Regular	Concierge	09/21/2011	XXXXXX	56.83
	XXXXXXXXXXXXXXXXXXXXX	Full-time Regular	Valet	02/06/2013	XXXXXX	0.00
	XXXXXXXXXXXXX	Full-time Regular	Room Attendant	03/22/2013	XXXXX	0.00
	XXXXXXXXXXXXXX	Full-time Regular	Engineer Ii	08/03/2011	XXXXXX	6.31
	XXXXXXXXXXXXXXXXXXXXXXXXXX	Full-time Regular	EDR Cook	04/07/2008	XXXXXX	96.93
	XXXXXXXXXXXXX	Full-time Regular	Lead Room Attendant	11/01/2007	XXXXXX	53.93
	XXXXXXXXXXXXXXXXXXXXXXXXX	Full-time Regular	Room Attendant	04/20/2006	XXXXXX	18.14
	XXXXXXXXXXXXXXXXXXXXXX	Full-time Regular	Cook I	03/08/2013	XXXXXX	0.00
	XXXXXXXXXXXXXXXX	Full-time Regular	Room Attendant	01/23/2006	XXXXXX	110.59
	XXXXXXXXXXXXXXXXXX	Full-time Regular	Cashier/greeter	09/05/2012	XXXXXX	10.25
	XXXXXXXXXXXXXXX	Full-time Regular	Warewasher/dishwasher	10/24/2012	XXXXXX	7.93
	XXXXXXXXXXXX	Full-time Regular	Valet	10/08/2012	XXXXXX	8.63
	XXXXXXXXXXXXX	Full-time Regular	Cook I	03/21/2012	XXXXXX	35.23
	XXXXXXXXXXXXXXXXXXXXXXXX	Full-time Regular	Cook I	04/03/2013	XXXXXX	0.00
	XXXXXXXXXXXXXXXXXXXXX	Full-time Regular	Engineer I	05/11/2010	XXXXXX	13.24
	XXXXXXXXXXXX	Part-time Regular	Yoga Hours	01/26/2011	XXXXXX	0.00
	XXXXXXXXXXXXXXXXXXX	Full-time Regular	Groundsmen	08/23/2011	XXXXXX	31.32
	XXXXXXXXXXXXXXXX	Full-time Regular	Concierge	02/24/2006	XXXXXX	55.16
	XXXXXXXXXXXXXXXXXXXX	Full-time Regular	Rooms Manager	03/23/2009	XXXXXX	71.62
	XXXXXXXXXXXXXXXXXXXXX	Full-time Regular	Spa Guest Service Agent	04/03/2013	XXXXXX	0.00
	XXXXXXXXXXXXX	Part-time Regular	Spa Guest Service Agent	08/10/2011	XXXXXX	0.00
	XXXXXXXXXXXXXXX	Full-time Regular	Carpet Cleaner	04/28/2010	XXXXXX	95.28
	XXXXXXXXXXXXX	Full-time Regular	Valet	10/13/2010	XXXXXX	29.26
	XXXXXXXXXXXX	Full-time Regular	Room Attendant	04/03/2013	XXXXX	0.00
	XXXXXXXXXXXXXXX	Full-time Regular	Busser	11/23/2005	XXXXX	44.83
	XXXXXXXXXXXXXXXX	Part-time Regular	Banquet Server	04/18/2012	XXXXX	0.00
	XXXXXXXXXXXXXXX	Full-time Regular	Engineer I	07/11/2012	XXXXXX	21.25
	XXXXXXXXXXXX	Full-time Regular	Bartender	05/30/2012	XXXXX	27.43
	XXXXXXXXXXXXXX	Full-time Regular	Cook I	12/05/2007	XXXXXX	22.50
	XXXXXXXXXXXXX	Full-time Regular	Coordinator	11/28/1999	XXXXXX	98.71
	XXXXXXXXXXXXXXX	Part-time Regular	Turn Down Attendant	01/23/2013	XXXXX	0.00
	XXXXXXXXXXXXXXX	Full-time Regular	Banquet Supervisor/captain	12/15/2010	XXXXXX	44.51
	XXXXXXXXXXXXXXXX	Full-time Regular	Bartender	01/19/2011	XXXXX	65.72
	XXXXXXXXXXXXXXXXXX	Full-time Regular	Room Attendant	02/22/2012	XXXXX	(9.32)
	XXXXXXXXXXXXXXXXX	Full-time Regular	Groundsmen	06/10/2011	XXXXXX	13.43
	XXXXXXXXXXXXXXXX	Full-time Regular	Expeditor	03/28/2012	XXXXX	35.72
	XXXXXXXXXXXXXXXXXXXXXX	Full-time Regular	Cook I	03/04/2009	XXXXXX	75.68
	XXXXXXXXXXXXXXXXXXX	Full-time Regular	House Attendant	10/10/2012	XXXXXX	8.15
	XXXXXXXXXXXXXXXXXXXXXXX	Full-time Regular	Warewasher/dishwasher	03/07/2013	XXXXXX	0.00
	XXXXXXXXXXXXXXXXXXXXXXXX	Full-time Regular	Sales Manager	03/21/2007	XXXXXX	75.63
	XXXXXXXXXX	Full-time Regular	Warewasher/dishwasher	04/05/2012	XXXXXX	30.13
	XXXXXXXXXXXXXX	Full-time Regular	Room Attendant	03/18/2013	XXXXX	0.00
	XXXXXXXXXXXXXXXX	Full-time Regular	Room Attendant	02/27/2013	XXXXX	0.00
	XXXXXXXXXXXXXXXX	Part-time Regular	Turn Down Attendant	03/20/2013	XXXXX	0.00
	XXXXXXXXXXXXXXXXXX	Full-time Regular	Chief Engineer	02/13/2012	XXXXXX	33.92
	XXXXXXXXXXXXXXXXX	Full-time Regular	Engineer Supervisor	08/23/2011	XXXXXX	21.15
	XXXXXXXXXXXXXX	Full-time Regular	Cook I	05/30/2012	XXXXXX	28.24
	XXXXXXXXXXXXXX	Full-time Regular	Exec Chef/Asst K Mgr/Sous Chef	09/12/2012	XXXXXX	18.75
	XXXXXXXXXXXXXXXXXXXXX	Full-time Regular	Server	08/24/2006	XXXXX	132.39
	XXXXXXXXXXXXX	Full-time Regular	Room Attendant	06/27/2012	XXXXXX	23.40
	XXXXXXXXXXXXXXXXXXX	Full-time Regular	House Attendant	10/24/2012	XXXXX	7.79
	XXXXXXXXXXXXXXX	Full-time Regular	Engineer Ii	11/02/2011	XXXXXX	15.05
	XXXXXXXXXXXXXXXXXXXXXXX	Full-time Regular	Spa Therapist	10/25/2011	XXXXX	45.99
	XXXXXXXXXXXXXX	Full-time Regular	Spa Housekeeping	01/10/2013	XXXXX	.03
	XXXXXXXXXXXXX	Part-time Regular	Banquet Server	04/20/2011	XXXXX	0.00
	XXXXXXXXXXXXXXXXX	Full-time Regular	Room Attendant	03/12/2012	XXXXX	14.39
	XXXXXXXXXXXXXXXXXXX	Full-time Regular	Reverationist	03/13/2013	XXXXXX	0.00
	XXXXXXXXXXXXXXXXX	Full-time Regular	Director of Rooms	03/11/2008	XXXXXX	72.12
	XXXXXXXXXXXXX	Full-time Regular	Sales Manager	04/04/2011	XXXXXX	81.63
	XXXXXXXXXXXX	Full-time Regular	Cook I	01/01/2008	XXXXXX	36.22
	XXXXXXXXXXXXXXXX	Full-time Regular	Housekeeping Manager	04/16/2007	XXXXXX	132.38
	XXXXXXXXXXXXXX	Full-time Regular	Cashier/greeter	01/24/2013	XXXXXX	0.00
	XXXXXXXXXXXXX	Full-time Regular	Rooms Assistant Manager	07/09/2008	XXXXXX	98.50
	XXXXXXXXXXXXXXX	Full-time Regular	Engineer I	01/05/2006	XXXXXX	43.58

 

	* Confidential information on this
    page has been omitted and filed separately with the Securities and Exchange Commission pursuant to a Confidential Treatment
    Request.

  

    	 

    	 

     

	Employee Name (Last, First) *	FT or PT	Job Title	Employment Start Date	Hrly Pay Rate *	Current Accrued Unused PTO Hours
	XXXXXXXXXXXX	Full-time Regular	PBX	05/09/2012	XXXXXX	6.18
	XXXXXXXXXXXXXXXXXXXXXXXX	Full-time Regular	House Attendant	03/27/2013	XXXXX	0.00
	XXXXXXXXXXXXXXXXX	Full-time Regular	Expeditor	03/02/2011	XXXXX	74.68
	XXXXXXXXXXXXXXXX	Part-time Regular	Spa Therapist	03/17/2010	XXXXX	8.76
	XXXXXXXXXXXXXXX	Full-time Regular	Pastry Chef	09/05/2012	XXXXXX	7.55
	XXXXXXXXXXXXX	Part-time Regular	Banquet Server	02/15/2011	XXXXX	0.00
	XXXXXXXXXXXXXXXXXXX	Full-time Regular	Turn Down Attendant	10/20/2010	XXXXX	2.47
	XXXXXXXXXXXXXXXXXXXX	Full-time Regular	Cashier/greeter	03/20/2013	XXXXXX	0.00
	XXXXXXXXXXXXX	Full-time Regular	Valet	06/13/2012	XXXXXX	24.45

  

Orchards Inn & Restaurant LLC
Employees

 

	Employee Name (Last, First) *	FT or PT	Job Title	Employment Start Date	Hrly Pay Rate *	Current Accrued Unused PTO Hours
	XXXXXXXXXXXXXXX	Full-time Regular	Room Attendant	03/14/2013	XXXXX	                  -   
	XXXXXXXXXXXXXXXX	Full-time Regular	Lead Room Attendant	02/18/2013	XXXXXXXXXXXX	                  -   
	XXXXXXXXXXXXXXXXXXXXXXX	Full-time Regular	Guest Service Agent	02/06/2013	XXXXXXXXXXXX	                  -   
	XXXXXXXXXXXXXXXX	Full-time Regular	Room Attendant	04/16/2012	XXXXXXXXXXXXX	           30.97 
	XXXXXXXXXXXXXXXXXXX	Full-time Regular	House Attendant	03/05/2013	XXXXXXXXXXXXX	                  -   
	XXXXXXXXXXXXXXXX	Full-time Regular	House Attendant	04/05/2012	XXXXXXXXXXXXX	           19.74 
	XXXXXXXXXXXX	Full-time Regular	House Attendant	05/07/2012	XXXXXXXXXXXXX	           27.71 
	XXXXXXXXXXXXXXXXXXX	Full-time Regular	Guest Service Agent	02/16/2006	XXXXXXXXXXXX	         154.68 
	XXXXXXXXXXXXXXXX	Full-time Regular	Room Attendant	08/01/2012	XXXXXXXXXXXXX	           16.95 
	XXXXXXXXXXXXXXXXXX	Full-time Regular	Room Attendant	02/09/2011	XXXXXXXXXXXX	           19.12 
	XXXXXXXXXXXXXX	Full-time Regular	Night Auditor	05/21/2012	XXXXXXXXXXXX	           13.20 
	XXXXXXXXXXXXXXX	Full-time Regular	Rooms Asst. Manager	08/30/2010	XXXXXXXXXXXX	           38.73 
	XXXXXXXXXXXXXXXXXX	Full-time Regular	General Manager	01/12/2011	XXXXXXXXXXXX	           38.16 
	XXXXXXXXXXX	Full-time Regular	Annex - Room Att Supervisor	12/15/2010	XXXXXXXXXXXX	           18.34 
	XXXXXXXXXXXX	Part-time Regular	Annex - House Attendant	10/11/2012	XXXXXXXXXXXXX	                  -   
	XXXXXXXXXXXXX	Full-time Regular	Night Auditor	06/22/2011	XXXXXXXXXXXX	              5.61 
	XXXXXXXXXXXXXXXXXXX	Full-time Regular	Housekeeping Manager	05/18/2011	XXXXXXXXXXXX	           76.44 
	XXXXXXXXXXXXXXXXXXX	Full-time Regular	Room Attendant	10/20/2010	XXXXXXXXXXXX	           28.68 

  

Taos Cantina LLC Employees

 

	Employee Name (Last, First) *	FT or PT	Job Title	Employment Start Date	Hrly Pay Rate *	Current Accrued Unused PTO Hours
	XXXXXXXXXXXXXX	Full-time Regular	Server	03/28/2012	XXXXXX	55.16
	XXXXXXXXXXXXXXXXXXX	Full-time Regular	Bartender	03/09/2011	XXXXX	76.75
	XXXXXXXXXXXXXXXXXXXXXXX	Full-time Regular	Cook I	03/14/2012	XXXXXX	19.00
	XXXXXXXXXXXXXX	Full-time Regular	Cook Ii	07/19/1999	XXXXXX	0.00
	XXXXXXXXXXXXXXXXXXXXXXXXXX	Full-time Regular	Cook I	04/06/2011	XXXXXX	39.67
	XXXXXXXXXXXXXXXXX	Full-time Regular	Back Server	04/03/2013	XXXXX	0.00
	XXXXXXXXXXXXXXXXX	Part-time Regular	Chef	01/31/2012	XXXXXX	26.52
	XXXXXXXXXXXXXX	Full-time Regular	Bartender	01/30/2013	XXXXX	0.00
	XXXXXXXXXXXXX	Full-time Regular	Cook I	02/27/2013	XXXXXX	6.49
	XXXXXXXXXXXXX	Full-time Regular	Bartender	08/01/2012	XXXXX	1.41
	XXXXXXXXXXXXXXXXXX	Part-time Regular	Cook I	12/31/2012	XXXXXX	0.00
	XXXXXXXXXXXXXXXXXXXXXXXXX	Full-time Regular	Cook Iii	11/12/2012	XXXXXX	7.09
	XXXXXXXXXXXXX	Full-time Regular	Cook Iii	04/08/2002	XXXXXX	159.06
	XXXXXXXXXXXX	Full-time Regular	Assistant Restaurant Manager	03/09/2011	XXXXXX	52.36
	XXXXXXXXXXXXX	Full-time Regular	Warewasher/dishwasher	12/24/2012	XXXXXX	7.75
	XXXXXXXXXXXXXXXX	Full-time Regular	Server	04/11/2012	XXXXX	3.83
	XXXXXXXXXXXXXX	Full-time Regular	Server	06/06/2012	XXXXX	7.18
	XXXXXXXXXXXXXX	Full-time Regular	Server	01/05/2006	XXXXX	154.89
	XXXXXXXXXXXXXXXXX	Part-time Regular	Cashier/greeter	06/13/2012	XXXXXX	0.00
	XXXXXXXXXXXXXXXXXXXXXXX	Full-time Regular	Server	02/23/2011	XXXXX	55.23
	XXXXXXXXXXXXXX	Full-time Regular	Restaurant Manager	02/01/2012	XXXXXX	21.56
	XXXXXXXXXXXXXXX	Full-time Regular	Cashier/greeter	03/19/2012	XXXXXX	10.90
	XXXXXXXXXXXXX	Full-time Regular	Back Server	06/06/2012	XXXXX	7.11
	XXXXXXXXXXXXXX	Full-time Regular	Server	08/18/2010	XXXXX	79.91

 

	* Confidential information on this
    page has been omitted and filed separately with the Securities and Exchange Commission pursuant to a Confidential Treatment
    Request.

 

    	 

    	 

     

	Employee Name (Last, First) *	FT or PT	Job Title	Employment Start Date	Hrly Pay Rate *	Current Accrued Unused PTO Hours
	XXXXXXXXXXXX	Full-time Regular	Server	04/27/2011	XXXXX	45.79
	XXXXXXXXXXXX	Full-time Regular	Back Server	07/11/2012	XXXXX	.22
	XXXXXXXXXXXXXXXX	Part-time Regular	Cashier/greeter	04/25/2012	XXXXXX	1.42
	XXXXXXXXXX	Full-time Regular	Bartender	04/22/2011	XXXXX	11.05

 

	* Confidential information on this
    page has been omitted and filed separately with the Securities and Exchange Commission pursuant to a Confidential Treatment
    Request.

  

    	 

    	 

    

 

 

Exhibit 3(x)(ii)

 

Labor Unions

 

NONE

 

 

    	 

    	 

     

 

 

 

 

 

Exhibit 3(x)(iii)

 

Collective Bargaining Agreements

No Conveying Party is a party to, bound by or In the process of negotiating any 

collective bargaining agreement, memorandum of understanding or other labor-

related contract, arrangement or understanding with any labor union, labor 

organization or other employee group or association applicable to persons 

employed at or performing personal services at the Property.

 

All employees are employed
"at will" except thatthere exists a Severance Policy

which is found on Page 46 of the Employee Handbook and set forth below:

 

SEVERANCE PAY POLICY

 

PURPOSE: To define the company's position with respect
to severance pay for exempt and non-

exempt Associates and to determine the procedures for making
such payment.

 

POLICY:

 

A. DEFINITIONS

 

1.Severance Pay is a payment made
to an Associate who is placed on layoff status, job elimination or for termination other than for cause. Severance pay does not
constitute compensation, and where applicable will be paid in addition to accrued salary, wages, and unused PTO time.

 

2.Notice is given by a written or
verbal statement which is to be delivered in person,

 

except that if the individual cannot be personally located
at the usual place of Employment during assigned working hours, notice may be given by mailing the statement to the employee at
his or her last known address. If notice is mailed, it will be sent by certified mail.

 

B. PROCEDURE

 

1. When it is necessary for the Company to put in effect
a reduction in work force, or to terminate an employee for reasons other than cause, the following payout schedule will apply:

 

	 	·	Non-exempt Associate in a non-probationary status will be given one (1) week severance pay for each full year worked. Cap of three (3) weeks applies.

	 	·	Exempt Associate in a non-probationary status will be given two (2) weeks of severance pay for each full year worked. Cap of six (6) weeks applies.

	 	·	Executive Committee member in a non-probationary status will be given one (1) months severance pay for the first full year worked, and two (2) weeks for each additional full year worked. Cap of four (4) months applies.

 

4. Continuation of health insurance
benefits may be extended through the term of the severance payout if the Associate was an active participant at the time of termination.

 

    	 

    	 

     

C. SEVERANCE PAY OPTIONS

 

The Company has the option of selecting one (1) of the following
severance pay outs:

 

1. Lump Sum Payment — The total amount due to the Associate
is paid at one time within three (3) days of termination date.

 

2. Salary Continuation — The Company may agree to salary
continuation for a certain period of time to satisfy the Severance pay due. The terminated Associate will continue to be on the
payroll and receive paychecks at the same frequency as a regular active Associate. Other benefits, ie, health insurance may continue
at the election of the Associate (Associate must already have elected coverage to apply).

 

C. ELIGIBILITY

 

1. An exempt or non-exempt Associate is not eligible for
severance pay if:

 

(a)the effective date of termination occurs during the
first year of employment

 

(b)the termination is for cause

 

(c)voluntary termination

 

D. EXECUTION OF POLICY

 

I. Terminations for which severance pay is to be given must
be communicated to the Director of Human Resources. A copy of the written notice of termination, endorsed to show the date upon
which notice was given to the Associate, shall be sent to the Director of Human Resources. The effective date of termination shown
on the written notice must be the actual date of termination of the Associate.

 

2. The Director of Human Resources is responsible for reviewing
the notice of termination for consistency with this policy and assuring that the amount of severance pay, if any, is correctly
computed and distributed to the appropriate entities.

 

3. Severance pay action should be taken immediately upon
learning of a termination and definitely before the last paycheck is released. A telephoned or an e-mailed notification to the
Director of Human Resources will expedite termination procedures.

 

    	 

    	 

     

 

 

 

Exhibit 3(x)(iv)

 

Employment Agreements

 

No Conveying Party is bound by or In
the process of negotiating any employee

leasing, shared labor or potential joint or single employer contracts or personal

services contracts arrangements or understandings involving the Property.

 

    	 

    	 

     

 

 

 

 

 

Exhibit 3(x)(v)

 

Strikes and Labor Actions

 

No Conveying Party
has experience or been affected by any strike, boycott, slowdown, walkout, work stoppage, or lockout within the past six (6) moths
and there is no such labor action pending, or, to Conveying Parties' knowledge, threatened against or otherwise affecting any Conveying
Parties with respect to employees or personal service providers.

 

 

    	 

    	 

     

 

 

 

Exhibit 3(x)(vi)

 

Pending or Threatened
Investigation or Claims with respect to Employees or

individuals who
perform personal services at the Property

 

NONE

 

    	 

    	 

     

 

Exhibit 3 (x) (ix)

 

Compensation and Termination Agreements

 

Cell Phone Reimbursement: Leadership Team Members receive
$75 per month reimbursement and Operational Managers receive $50 per month.

 

L'Auberge In Lieu of Tips: In lieu of accepting gratuities,
all hourly employees at L'Auberge share in 40% of the total service fee collected each month.

 

Manager Bonus Programs at L'Auberge:

 

	Senior Mgmt*	 	Monthly 

Bonus*	 	 	Quarterly 

Bonus*	 	 	Annual Total 

Bonus*	 	 	Bonus 

Based On
	 	 	 	 	 	 	 	 	 	 	 	 
	XXXXX	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	XXXXXXXXX	 	X	XXXXXXXX	 	 	X	XXXXXXXX	 	 	X	XXXXXXXXX	 	 	Labor/Revenue Goals
	XXXXXXXXXXXXXX	 	X	XXXXXXXX	 	 	X	XXXXXXXX	 	 	X	XXXXXXXXX	 	 	Labor/Dept Budget
	XXXXXXXXXXXXXX	 	X	XXXXXXXX	 	 	X	XXXXXXXX	 	 	X	XXXXXXXXX	 	 	Labor/Dept Budget
	XXXXXXXXXXX	 	X	XXXXXXXX	 	 	X	XXXXXXXX	 	 	X	XXXXXXXXX	 	 	Labor/Revenue Goals
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Managers*	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	XXXXXXXXXXXX	 	X	XXXXXXXX	 	 	 	 	 	 	X	XXXXXXXXX	 	 	Labor/Dept Budget
	XXXXXXXXXXXXX	 	X	XXXXXXXX	 	 	 	 	 	 	X	XXXXXXXXX	 	 	Labor/Dept Budget
	XXXXXXXX	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	XXXXXX	 	X	XXXXXXXX	 	 	 	 	 	 	X	XXXXXXXXX	 	 	Labor/Dept Budget
	XXXXXXXXXXXX	 	X	XXXXXXXX	 	 	 	 	 	 	X	XXXXXXXXX	 	 	Labor/Revenue Goals
	XXXXXXXXXXX	 	X	XXXXXXXX	 	 	 	 	 	 	X	XXXXXXXXX	 	 	Labor/Dept Budget
	XXXXXXXX	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	XXXXXXX	 	X	XXXXXXXX	 	 	 	 	 	 	X	XXXXXXXXX	 	 	Labor/Food Costs
	XXXXXXXXXXXXX	 	X	XXXXXXXX	 	 	 	 	 	 	X	XXXXXXXXX	 	 	Labor/Food Costs
	XXXXX	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	XXXXXXXXX	 	X	XXXXXXXX	 	 	 	 	 	 	X	XXXXXXXXX	 	 	Labor/Dept Budget
	XXXXXXXXXXXX	 	X	XXXXXXXX	 	 	 	 	 	 	X	XXXXXXXXX	 	 	Labor/Food Costs
	XXXXXXXXXXX	 	X	XXXXXX	 	 	 	 	 	 	 	XXXXXXXX	 	 	Labor/Revenue Goals
	XXXXXX	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	XXXXXXX	 	X	XXXXXX	 	 	 	 	 	 	 	XXXXXXXX	 	 	Revenue Goals
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Asst Managers*	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	XXXXXXXXXXXX	 	X	XXXXXX	 	 	 	 	 	 	X	XXXXXXXX	 	 	Labor/Dept Budget
	XXXXXXXXXXX	 	X	XXXXXX	 	 	 	 	 	 	X	XXXXXXXX	 	 	Labor/Food Costs
	XXXXXXXXXX	 	X	XXXXXX	 	 	 	 	 	 	X	XXXXXXXX	 	 	Labor/Food Costs
	XXXXXXXXXXXXX	 	X	XXXXXX	 	 	 	 	 	 	X	XXXXXXXX	 	 	Labor/Food Costs

  

* Confidential information
on this page has been omitted and filed separately with the Securities and Exchange Commission pursuant to a Confidential Treatment
Request.

 

    	 

    	 

     

Manager Bonus Programs at Orchards:

 

	Senior Mgmt*	 	Monthly 

Bonus*	 	 	Quarterly 

Bonus*	 	 	Annual Total 

Bonus*	 	 	Bonus 

Based On
	 	 	 	 	 	 	 	 	 	 	 	 
	XXXXXXXXXXXXXX	 	X	XXXXXXXX	 	 	X	XXXXXXXX	 	 	X	XXXXXXXXX	 	 	Labor/Revenue Goals
	XXXXXXXXXXXXXX	 	X	XXXXXX	 	 	X	XXXXXX	 	 	X	XXXXXXXX	 	 	Labor/Dept Budget
	XXXXXXXXXXXXXX	 	 	XXXXXX	 	 	X	XXXXXX	 	 	X	XXXXXXXX	 	 	Labor/Dept Budget
	XXXXXXXXXXX	 	X	XXXXXX	 	 	X	XXXXXX	 	 	X	XXXXXXXX	 	 	Labor/Revenue Goals
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Managers*	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	XXXXXXXXXXX	 	X	XXXXXXXX	 	 	 	 	 	 	X	XXXXXXXXX	 	 	Labor/Dept Budget
	XXXXXXXXXXX	 	X	XXXXXX	 	 	 	 	 	 	X	XXXXXXXX	 	 	Labor/Dept Budget
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Asst Managers*	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	XXXXXXXXXXXXXX	 	X	XXXXXX	 	 	 	 	 	 	X	XXXXXXXX	 	 	 

 

Agreement for Payment of Health Services
— An Agreement to pay for a defined number of visits per year to the Sedona Urgent Care under which the Conveying Parties
pay $100 for each eligible visit. A complete copy of the Agreement is attached to this Exhibit 3(x)(ix).

 

Group Health Insurance and Dental Insurance
and Vision Insurance. Aetna Group Plan 468146-10-002 for Medical, Aetna Group Plan 468146-31-002 for Dental and Vision.

 

Termination Severance Agreements
— Severance Pay Policy found on Page 46 of the Employee Handbook and set forth below:

 

SEVERANCE PAY POLICY

 

PURPOSE: To define the Company's position with respect
to severance pay for exempt and nonexempt Associates and to determine the procedures for making such payment.

 

POLICY:

 

A. DEFINITIONS

 

I. Severance Pay is a payment made to an Associate who is placed
on layoff status, job elimination or for termination other than for cause. Severance pay does not constitute compensation, and
where applicable will be paid in addition to accrued salary, wages, and unused PTO time.

 

2. Notice is given by a written or verbal statement which is
to be delivered in person, except that if the individual cannot be personally located at the usual place of Employment during assigned
working hours, notice may be given by mailing the statement to the employee at his or her last known address. If notice is mailed,
it will be sent by certified mail.

 

* Confidential information
on this page has been omitted and filed separately with the Securities and Exchange Commission pursuant to a Confidential Treatment
Request.

 

    	 

    	 

      

B. PROCEDURE

 

1. When it is necessary for the Company to put in effect
a reduction in work force, or to terminate an employee for reasons other than cause, the following payout schedule will apply:

 

	 	·	Non-exempt Associate in a non-probationary status will be given one (1) week severance pay for each full year worked. Cap of three (3) weeks applies.

	 	·	Exempt Associate in a non-probationary status will be given two (2) weeks of severance pay for each full year worked. Cap of six (6) weeks applies.

	 	·	Executive Committee member in a non-probationary status will be given one (1) months severance pay for the first full year worked, and two (2) weeks for each additional full year worked. Cap of four (4) months applies.

 

4.           Continuation
of health insurance benefits may be extended through the term of the severance payout if the Associate was an active participant
at the time of termination.

 

C. SEVERANCE PAY OPTIONS

 

The Company has the option of selecting one (1) of the following
severance pay outs:

 

1.           Lump
Sum Payment — The total amount due to the Associate is paid at one time within three (3) days of termination date.

 

2.           Salary
Continuation — The Company may agree to salary continuation for a certain period of time to satisfy the Severance pay due.
The terminated Associate will continue to be on the payroll and receive paychecks at the same frequency as a regular active Associate.
Other benefits, ie, health insurance may continue at the election of the Associate (Associate must already have elected coverage
to apply).

 

C. ELIGIBILITY

 

1. An exempt or non-exempt Associate is not eligible for
severance pay if:

 

(a)          the
effective date of termination occurs during the first year of employment

 

(b)          the
termination is for cause

 

(c)          voluntary
termination

 

D. EXECUTION OF POLICY

 

1.           Terminations
for which severance pay is to be given must be communicated to the Director of Human Resources. A copy of the written notice of
termination, endorsed to show the date upon which notice was given to the Associate, shall be sent to the Director of Human Resources.
The effective date of termination shown on the written notice must be the actual date of termination of the Associate.

 

2.           The
Director of Human Resources is responsible for reviewing the notice of termination for consistency with this policy and assuring
that the amount of severance pay, if any, is correctly computed and distributed to the appropriate entities.

 

3.           Severance
pay action should be taken immediately upon learning of a termination and definitely before the last paycheck is released. A telephoned
or an e-mailed notification to the Director of Human Resources will expedite termination procedures.

 

    	 

    	 

     

AGREEMENT FOR PAYMENT FOR HEALTH SERVICES

 

This Agreement for
Payment for Health Services (Agreement) is made this 1 day of May,
2012 by and between Sedona Urgent Care, Ltd, an Arizona professional corporation ("Sedona Urgent Care") and Barrett Realty,
LLC, an Arizona limited liability company; L'Auberge de Sedona, LLC, an Arizona limited liability company; Open Range Grill and
Tavern, LLC, an Arizona limited liability company; Orchards Inn & Restaurant LLC, an Arizona limited liability company; and
Sedona Culinary Concepts, LLC, an Arizona limited liability company, collectively known as "Sedona Center" .

 

RECITALS

 

	 	1.	Sedona Urgent Care is a provider of professional medical services and/or related health care services.

 

	 	2.	Sedona Center is an employer in Uptown Sedona.

 

	 	3.	Sedona Urgent Care desires to provide certain medical services to the employees of Sedona Center under the terms and conditions set forth in this Agreement

 

	 	4.	Sedona Center desires to retain Sedona Urgent Care to provide certain medical services to its employees only to the extent of payment for such services as set forth under the terms and conditions that follow.

 

T IS AGREED AS FOLLOWS: 

 

	 	1.	PROVISION OF COVERED MEDICAL SERVICES BY SEDONA URGENT CARE. Sedona Urgent Care agrees to provide health care services within the normal scope of practice and in accordance with the licenses of Urgent Care to the employees of Sedona Center as defined below:

 

COVERED SERVICES (Included in Case Rate)

 

	 	·	Minor emergency

Examples may include

-     Sutures
(Including suture removal)

-     Ortho
Glass Splints

-     Sprains

-     Lacerations

-     Fractures
(Does not include Durable Medical Equipment)

-     Minor
Burns and Abrasions

-     Allergic
Reactions

	 	·	Illness/Sickness Including any tests that are required for diagnostic purposes.

Examples may include

 

    	 

    	 

     

Strep test

Flu test

Urinalysis (Does not include lab charges if urine needs
to be sent to a lab) Accu-check (Blood glucose test)

Blood Pressure checks

Mono Test

 

	 	·	Onsite Digital X-Ray and Readings

 

NON-COVERED SERVICES 

 

-   Physical Therapy

-   Wellness Exams

	 	·	Charges incurred by outside sources/services including but not limited to:

Labs

Pharmaceuticals (Pharmacies)

Diagnostic Imaging (MRI, CAT Scans, Ultrasound, Mammograms
etc.)

Durable Medical Equipment

Work related accidents, injuries, or illnesses.

All other charges incurred from other Practitioners
and/or Facilities.

 

	 	2.	TERM. The initial Term of this Agreement shall be from June 1, 2012 to May 31, 2013.

 

	 	3.	COVERED SERVICES ELIGIBLE FOR PAYMENT BY SEDONA CENTER. Sedona Center agrees to pay for Covered Services in accordance with the following schedule ("Eligibility Schedule"): (i) Employee Only — up to three (3) visits per year; (ii) Employee and Spouse — up to six (6) visits per year; and (iii) Employee, Spouse and dependents up to the age of 21 - up to eight (8) visits per year. Upon the signing of this Agreement, Sedona Center shall provide a current and up-to-date census ("Eligibility Census") to Sedona Urgent Care. Thereafter, each time a new hire or termination occurs that impacts the Eligibility Census, Sedona Center will provide an update to the Eligibility Census that will be sent via email to sedonaurgentcare@yahoo.com. Upon receipt of each such email, Sedona Urgent Care will respond to the email with the word "Received", thereby confirming receipt of the most current Eligibility Census. Both parties acknowledge that Sedona Center will pay the Case Rate only in accordance with the Eligibility Schedule and the Eligibility Census. Should Sedona Urgent Care render services to any person that is not listed on the most current Eligibility Census, or in excess of the Eligibility Schedule, Sedona Center will not be liable for payment for such services.

 

	 	4.	PAYMENT BY SEDONA CENTER TO SEDONA URGENT CARE. Sedona Center agrees to pay to Sedona Urgent Care a Case Rate not to exceed one hundred dollars ($100.00) for each eligible visit in accordance with the Eligibility Schedule and the Eligibility Census. Sedona Center agrees to be responsible for all balances due in the unlikely events of bankruptcy proceedings, sale of business, split in partnership or shareholders, or loses its authority to do business in total.

 

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	 	5.	PAYMENT BY ELIGIBLE EMPLOYEE. At the time services are rendered by Sedona Urgent Care, all eligible employees will be responsible for payment to Sedona Urgent Care of a copay of fifteen dollars ($15.00) for each visit ("Co-Pay"), per person, payable to Sedona Urgent Care. Any charges incurred by an employee of Sedona Center in excess of the Eligibility Schedule will be the responsibility of and collected by Sedona Urgent Care from each employee and/or dependent at the time services are rendered, without a maximum cost of out of pocket to the employee and/or dependents. Sedona Center will not be responsible for payment of any amount for services rendered to employees not on the Eligibility Census and/or in excess of the Eligibility Schedule. As a means of audit, Sedona Urgent Care will furnish all eligible employees and/or spouses and dependents of eligible employees with a second receipt of payment of the Co-Pay which will be given by the eligible employee to Sedona Center as evidence that services were provided.

 

	 	6.	INVOICING BY SEDONA URGENT CARE. Monthly Statements of services provided by Sedona Urgent Care to eligible employees of Sedona Center will be mailed to the attention of Bruce Campbell, 270 N. Highway 89A, Suite 11, Sedona, AZ 86336, with a copy to Tina Littleman, 301 L'Auberge Lane, Sedona, AZ 86336. Each Statement will include following information: (1) the name of the eligible employee and the date of service, and/or (2) in the case of services rendered to either a spouse or dependent of an eligible employee, the name of the eligible employee, the name of the spouse or dependent, and the date of service. Monthly Statements will be mailed on the fifteenth (15th) day of each month for the previous calendar month. Payment shall be made by Sedona Center within fifteen days to Sedona Urgent Care.

 

	 	7.	NO INSURANCE CLAIMS. Sedona Urgent Care specifically acknowledges that in the case of rendering medical services to eligible employees of Sedona Center that are covered under any health insurance plan, Sedona Center intends the arrangement for payments under this Agreement to be in lieu of Sedona Urgent Care submitting to insurance companies for reimbursement for services. Sedona Urgent Care agrees that it will either utilize a patient's health insurance benefit or submit for payment of the Case Rate to Sedona Center, but not both.

 

	 	8.	RELATIONSHIP OF THE PARTIES In performance of their respective duties and obligations hereunder, Sedona Urgent Care and Sedona Center and each of their respective owners, officers, partners, agents, and employees and agents, are at all times acting and performing as independent contractors and neither party, nor their respective owners, officers, partners, agents, and employees and agents shall be considered the partner, agent, servant, employee of, or joint venturer with the other party.

 

    	3

    	 

     

	 	9.	STANDARDS OF PROFESSIONAL PRACTICE. Health care services shall be made available to eligible employees without discrimination on the basis of sex, age, race, color, religion, national origin, health status or disability. Providers of Sedona Urgent Care shall provide health care services to eligible employees in the same manner provided to other patients and in accordance with prevailing practices and standards of profession,

 

	 	10.	MEDICAL RECORDS Sedona Urgent Care shall prepare, maintain, and retain as confidential, the medical records of all patients receiving health care services for a time period of 6 years, as required by state and federal laws, licensing requirements. Sedona Center has no interest in nor right to any confidential medical record information.

 

	 	11.	GRIEVANCE PROCESS Sedona Center's role in this Agreement is to provide payment to Sedona Urgent Care for health care services provided by Sedona Urgent Care to eligible employees of Sedona Center in accordance with the Eligibility Schedule and the Eligibility Census. Sedona Center has no further obligation, and specifically will not participate in any grievance procedures to resolve disputes that may arise between Sedona Urgent Care and eligible employees/spouses/dependents of Sedona Center. Sedona Center does not claim to be knowledgeable in the field of health care and therefore accepts no liability whatsoever in the performance of health care services by Sedona Urgent Care.

 

	 	12.	NOTICES. Except as otherwise provided in this Agreement, all notices, consents, or approvals required by this Agreement shall be in writing sent by certified or registered mail, (postage prepaid), by facsimile or electronic mail to:

 

	SEDONA URGENT CARE: Gordon S. Tekell	 

 

	 	SEDONA URGENT CARE
	 	 
	 	 
	 	Phone:
	 	Fax:______
	 	Email:

 

	SEDONA CENTER	Bruce Campbell
	 	SEDONA CENTER LLC
	 	270 N. Highway 89A, Suite 11 
	 	Sedona, AZ 86336

 

    	4

    	 

     

	 	Phone: (928) 204-4376
	 	Fax: (928) 282-4531
	 	Email: BruceC@Iauberge.corn

 

	With a copy to:	
        Al Spector

        Barrett Realty LLC

        6900 E. Camelback Road, #915

        Scottsdale, AZ 85251

        Phone: (480) 941-0221, x 314

        Fax: (480) 990-9093

        Email: al@alspector.net

 

or (ii) in any other manner mutually agreed
upon by the Parties. Notices shall be deemed effective on the date of mailings.

 

	 	13.	RIGHTS OF TERMINATION. In the event either party wishes to terminate this Agreement, either party shall have the right to do so by giving written notice of such intent to terminate at least sixty (60) days prior for any reason.

 

	 	14.	MODIFICATION: AMENDMENTS. This Agreement may be amended from time to time in writing as mutually agreed to by both parties.

 

	 	15.	ENTIRE AGREEMENT. This Agreement, together with all amendments, if any, constitutes the entire Agreement among the parties pertaining to the subject matter hereof and supersedes all prior and contemporaneous, oral and written, agreements and understandings pertaining thereto. Any amendment to this Agreement must be in writing, mutually agreed upon and duly executed.

 

	 	16.	ASSIGNMENT. This agreement is between Sedona Urgent Care, Gordon S. Tekell as sole owner and Sedona Center. Any third party interest or intent to transfer this agreement shall require notice to and the written consent of all parties involved. Any attempt by Sedona Urgent Care or Sedona Center to assign this agreement or its interest hereunder without complying with the terms of this paragraph shall be void and of no effect, at its option, may elect to terminate this agreement upon thirty (30) days of written notice, without any further liability or obligation by either party. Either party may assign this Agreement in completely or in part to any purchaser of or successor to the assets or change in operations of Sedona Center or Sedona Urgent Care, provided that the assignee agrees to assume all obligations under the Agreement

 

	 	17.	COUNTERPARTS. This Agreement may be executed in two or more counterparts, each of which when so executed will be deemed original, and all of which together will constitute one and the same instrument In addition, signatures transmitted by facsimile shall serve the same purpose and function as original signatures.

 

    	5

    	 

     

	 	18.	MUTUAL INDEMNITY. The parties acknowledge and agree that neither Sedona Urgent Care nor Sedona Center will be liable for the activities of the other nor the agents and employees of the other, including but not limited to, any liabilities, losses, damages, suits, actions, fines, penalties, claims or demands of any kind or nature by or on behalf of any person, party or governmental authority arising out of or in connection with (i) any failure to perform any of the agreement terms, covenants or conditions of this Agreement; (ii) any negligent act or omission or other misconduct; (iii) the failure to comply with any applicable laws, rules or regulations; or (iv) any accident, injury or damage to persons or property. Notwithstanding anything to the contrary contained herein, both parties further agree to and hereby does indemnify, defend and hold harmless one another from any and all claims, judgments, costs, liabilities, damages and the provision by Sedona Urgent Care of health care services provided to the employees of Sedona Center.

 

	 	19.	SEVERABILITY. Any term or provision of this Agreement that is or becomes invalid or unenforceable shall be ineffective to the extent of such invalidity or unenforceability without rendering invalid or unenforceable the remaining terms or provisions of this Agreement.

 

	 	20.	GOVERNING LAW: CONSENT TO JURISDICTION: VENUE. This Agreement shall be governed by and construed in accordance with the laws of the State of Arizona. Each party hereto hereby agrees that any proceeding relating to this Agreement and the transactions contemplated hereby shall be brought solely in the superior court of the state of Arizona, county of Coconino.

 

	 	21.	PATIENT TRANSPORT DISCLOSURE. Sedona Urgent Care is an urgent care facility which follows the Patient Transportation rules and guidelines governing such facilities. Attached as Exhibit "A" is the full Patient Transport Disclosure. Sedona Center will not pay any expenses related to Patient Transportation.

 

1N WITNESS WHEREOF, the parties have the
authority necessary to bind; the entities identified herein and have executed this Agreement to be effective as of June 1, 2012.

 

SEDONA URGENT CARE, LTD., 

an Arizona professional corporation

 

	By:	 	 
	 	Gordon S. Tekell
	Its:	President

 

    	6

    	 

     

For and on behalf of all entities whose employees benefit
from this Agreement

 

SEDONA CENTER, LLC, an Arizona

limited liability company

 

	By:	/s/ Al Spector	 
	 	Al Spector
	Its: Manager

 

    	 

    	 

     

PATIENT TRANSPORT DISCLOSURE

 

The Urgent Care facility is designed for ambulatory patients
not requiring the level of service provided in an emergency department. Nevertheless, patients may present with serious, even life-threatening
illnesses or injuries. These patients should be transferred to the Emergency Department per the following guidelines:

—Patients in shock, even if cause is undetennhted.

—Patients In coma.

—Patients in hypertensive crisis.

—Patients with obvious life-threatening conditions
such as stab wounds, head injuries with loss of consciousness, gunshot wounds, etc.

—Patients with obvious life-threatening medical conditions
such as severe chest pain with possible MI, congestive heart failure, CVA, etc.

—Patients requiring admission to the hospital.

—Patients requiring observation until specialized studies
are obtained to diagnose their condition, such as lumbar punctures, CT scans, ME, etc. —Psychiatric patients requiring evaluation
for admission.

 

EXHIBIT "A"

 

    	 

    	 

     

 

 

 

 

Exhibit 4(d)

 

Third-Party Authorizations of Transaction

 

NONE

 

    	 

    	 

     

 

Exhibit 4(e)

 

Consents to Transaction 

 

NONE

 

    	 

    	 

     

 

 

Exhibit 5(a)

 

Permitted Modifications of Agreement,
Properties and Business Practices

 

Conveying Parties confirm the following:

 

	 	(1)	Since January 1, 2011 except in the ordinary course of business no Conveying Party has entered into, modified or waived material provisions of, or terminated any material agreements relating to the Property, including Leases and employment agreements.

 

	 	(2)	Since January 1, 2011 except in the ordinary course of business no Conveying Party has removed from the Property any material portion of the personal property or other intangible property that is being conveyed pursuant to this Agreement.

 

	 	(3)	Since November 1, 2012 except In the ordinary course of business Conveying Party has not materially changed the usual business practices and operating of the Property, including inventory and supply levels, maintenance, employment and maintenance of reserves.

 

    	 

    	 

     

 

 

EXHIBIT
8(a)-i

 

SPECIAL
WARRANTY DEED CONVEYING LAMERRA PROPERTY

TO HL
NEWCO, LLC 

 

When recorded return to:

 

Jonathan T. Brohard, Esq.

Polsinelli Shughart, PC

One E. Washington St., Ste. 1200

Phoenix, AZ 85004

 

SPECIAL WARRANTY DEED

 

(LaMerra Property)

 

HL, LLC, an Arizona
limited liability company (“Grantor”), for the
consideration of Ten Dollars, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged,
hereby conveys to HL Newco, LLC, a Delaware limited liability company (“Grantee”),
its successors and assigns forever, that certain real property situated in the State of Arizona, and more particularly described
as:

 

See Exhibit A attached hereto

 

together with all rights, benefits, privileges,
easements, tenements, hereditaments and appurtenances thereto belonging, and the rents, issues and profits thereof and all water
rights and claims to water rights appurtenant and related thereto and wells thereon, including but not limited to those identified
by the Arizona Department of Water Resources as Nos. 36-18397.0002, 36-18398.0002, 36-18399.0002, 55-609715, 55-609716, 55-901602,
39-48282, 39-48283, 39-48284, 39-48285 and 39-56981; SUBJECT TO current and future taxes and the assessments, liens, and encumbrances
set forth on Exhibit B attached hereto.

 

And the GRANTOR binds
itself to warrant the title against all acts of the Grantor and none other, subject to the matters set forth above.

 

This Deed is exempt
from an Affidavit of Value pursuant to ARS § 11-1134B-1.

 

IN WITNESS WHEREOF,
the Grantor has signed this Special Warranty Deed as of the ____ day of _____________, 2013.

 

[SIGNATURE ON FOLLOWING
PAGE]

  

    	 

    	 

     

	 	GRANTOR	 
	 	 	 
	 	HL LLC,	 
	 	an Arizona limited liability company	 
	 	 	 
	 	By:	 	 
	 	 	Albert B. Spector, Jr.	 
	 	Its:	 	 

 

ACKNOWLEDGMENT

 

	STATE OF ARIZONA	)	 
	 	) ss	 
	COUNTY OF _______________________	)	 
	 	 	 
	On ____________________, before me, ____________________________________, a Notary Public in and for the State of Arizona, personally appeared ______________________, personally known to me (or proved to me on the basis of satisfactory evidence) to be the person whose name is subscribed to the within instrument and acknowledged to me that he/she executed the same in his/her authorized capacity, and that by his/her signature on the instrument the person, or the entity upon behalf of which _______________________________ acted, executed the instrument.
	
         

         

        ______________________________________

        Signature
	
         

         

	
        My Commission Expires:

         
	(Space above for official notarial seal)

 

Special Warranty Deed (LaMerra) - Signature

 

    	 

    	 

     

EXHIBIT A

 

LEGAL DESCRIPTION

 

(LaMerra)

 

THE LAND REFERRED TO HEREIN BELOW IS SITUATED
IN THE COUNTY OF YAVAPAI, STATE OF ARIZONA, AND IS DESCRIBED AS FOLLOWS:

 

PARCEL NO. 1:

 

THE NORTH HALF OF THE NORTHEAST QUARTER OF SECTION 34, TOWNSHIP
17 NORTH, RANGE 5 EAST OF THE GILA AND SALT RIVER BASE AND MERIDIAN, YAVAPAI COUNTY, ARIZONA;

 

EXCEPT BEGINNING AT A POINT IN THE SOUTHERLY LINE OF SAID LAND,
WHICH POINT IS DISTANT 650 FEET EASTERLY ALONG SAID SOUTHERLY LINE FROM THE SOUTHWEST CORNER OF SAID LAND;

 

THENCE WESTERLY ALONG SAID SOUTHERLY LINE TO THE SOUTHWEST CORNER
OF SAID LAND;

 

THENCE NORTHERLY ALONG THE WESTERLY LINE OF SAID LAND, A DISTANCE
OF 670 FEET;

 

THENCE SOUTHEASTERLY IN A DIRECT LINE TO THE POINT OF BEGINNING.

 

PARCEL NO. 2:

 

THE SOUTHEAST QUARTER OF THE SOUTHEAST QUARTER (BEING LOT 13)
OF SECTION 27, TOWNSHIP 17 NORTH, RANGE 5 EAST OF THE GILA AND SALT RIVER BASE AND MERIDIAN, YAVAPAI COUNTY, ARIZONA.

 

PARCEL NO.3:

 

ALL THAT PORTION OF THE SOUTHEAST QUARTER OF SECTION 27, TOWNSHIP
17 NORTH, RANGE 5 EAST OF THE GILA AND SALT RIVER BASE AND MERIDIAN, YAVAPAI COUNTY, ARIZONA, DESCRIBED AS FOLLOWS:

 

BEGINNING AT THE SOUTH QUARTER CORNER OF SAID SECTION 27, MARKED
BY A G.L.O. BRASS CAP;

 

THENCE NORTH 2 DEGREES 37 MINUTES 30 SECONDS WEST, 115.90 FEET
TO AN EXISTING FENCE;

 

THENCE NORTH 89 DEGREES 24 MINUTES 50 SECONDS EAST, ALONG SAID
FENCE, 204.31 FEET;

 

THENCE SOUTH 2 DEGREES 37 MINUTES 30 SECONDS EAST TO A POINT
ON THE SOUTH LINE OF SAID SECTION 27;

 

THENCE SOUTH 89 DEGREES 00 MINUTES WEST, ALONG SAID SECTION
LINE TO THE ACTUAL POINT OF BEGINNING.

 

Special Warranty Deed (LaMerra) – Ex.
A

 

    	 

    	 

     

PARCEL NO.4:

 

THAT PORTION OF THE SOUTHEAST QUARTER OF THE SOUTHWEST QUARTER
OF SECTION 27, TOWNSHIP 17 NORTH, RANGE 5 EAST OF THE GILA AND SALT RIVER BASE AND MERIDIAN, YAVAPAI COUNTY, ARIZONA, LYING EASTERLY
OF A LINE LOCATED 100 FEET WEST OF AND PARALLEL TO SAID EAST LINE OF THE SOUTHWEST QUARTER, AND SOUTH OF A LINE HAVING A COURSE
OF NORTH 85 DEGREES 13 MINUTES EAST THROUGH A POINT THAT LIES NORTH 2 DEGREES 37 MINUTES 30 SECONDS WEST, 118.5 FEET FROM THE SOUTH
QUARTER CORNER OF SECTION 27 MARKED BY A G.L.O. BRASS

CAP.

 

PARCEL NO. 5:

 

ALL THAT PORTION OF THE SOUTHWEST QUARTER OF THE SOUTHEAST QUARTER
OF SECTION 27, TOWNSHIP 17 NORTH, RANGE 5 EAST OF THE GILA AND SALT RIVER BASE AND MERIDIAN, YAVAPAI COUNTY, ARIZONA, LYING SOUTHERLY
OF AND CONTIGUOUS TO THE FOLLOWING DESCRIBED BOUNDARY LINE:

 

FROM THE NORTHEAST CORNER OF THE QUIT CLAIM PARCEL OF LAND DESCRIBED
AS BOOK 938 OF OFFICIAL RECORDS, PAGE 57, YAVAPAI COUNTY RECORDERS OFFICE, THE TRUE POINT OF BEGINNING, SAID CORNER LYING ON THE
EAST-WEST BARBED WIRE FENCE AS SHOWN ON THE RECORD OF SURVEY RECORDED AS BOOK 17 OF LAND SURVEYS AT PAGE 17, AND ALSO ON THE SOUTHERLY
LINE OF THE MONTERASTELLI (SIC) BOUNDARY AS SHOWN ON RESULTS OF SURVEY BY PATRICK NEVILLE, RECORDED AS BOOK 16, AT PAGE 100, DATED
JULY 14, 1992;

 

THENCE SOUTH 89 DEGREES 53 MINUTES 02 SECONDS EAST, ALONG THE
FENCE AND ITS EASTERLY EXTENSION AND ALONG THE SOUTHERLY LINE OF THE MONTERASTELLI BOUNDARY, 791.99 FEET;

 

THENCE SOUTH 41 DEGREES 19 MINUTES 24 SECONDS EAST, 39.09 FEET
TO THE SOUTH LINE OF SECTION 27, PER THE ARIZONA ENGINEERING COMPANY RECORD OF SURVEY RECORDED AS BOOK 10 OF RECORDS OF SURVEY,
AT PAGE 99;

 

THENCE SOUTH 88 DEGREES 14 MINUTES 32 SECONDS EAST, ALONG THE
SOUTH LINE OF SECTION 27, 75.15 FEET;

 

THENCE SOUTH 73 DEGREES 27 MINUTES 42 SECONDS EAST, 55.92 FEET;

 

THENCE NORTH 22 DEGREES 46 MINUTES 34 SECONDS EAST, 11.20 FEET;

 

THENCE NORTH 87 DEGREES 02 MINUTES 45 SECONDS EAST, 21.97 FEET;

 

THENCE SOUTH 81 DEGREES 16 MINUTES 09 SECONDS EAST, 29.96 FEET;

 

THENCE SOUTH 65 DEGREES 43 MINUTES 54 SECONDS EAST, 22.05 FEET
TO THE EAST LINE OF THE NORTHWEST QUARTER OF THE NORTHEAST QUARTER OF SECTION 34, WHICH IS THE POINT OF TERMINUS OF THE BOUNDARY
LINE;

 

THE BASIS OF BEARINGS FOR THIS DESCRIPTION IS SOUTH 88 DEGREES
14 MINUTES 32 SECONDS EAST, FROM THE SOUTH QUARTER CORNER OF SECTION 27 TO THE SOUTHEAST CORNER OF SECTION 27, ACCORDING TO THE
ARIZONA ENGINEERING COMPANY RESULTS OF SURVEY RECORDED AS BOOK 10 OF RECORDS OF SURVEYS, AT PAGE 99, YAVAPAI COUNTY RECORDERS OFFICE.

  

Special Warranty Deed (LaMerra) – Ex.
A

 

    	2

    	 

     

PARCEL NO. 6:

 

EASEMENT FOR ROADWAY FOR INGRESS AND EGRESS FOR THE PURPOSE
OF TRAVEL AND MAINTENANCE AS CREATED IN BOOK 3833, OF OFFICIAL RECORDS, PAGE 934, BEING 50 FEET WIDE, LYING 30 FEET ON THE WESTERLY
AND SOUTHERLY SIDES AND 20 FEET ON THE EASTERLY AND NORTHERLY SIDES OF THE FOLLOWING DESCRIBED PROPERTY:

 

THE CENTERLINE OF AN EXISTING DIRT ROAD IN SECTION 27, TOWNSHIP
17 NORTH, RANGE 5 EAST OF THE GILA AND SALT RIVER BASE AND MERIDIAN, YAVAPAI COUNTY, ARIZONA, MORE PARTICULARLY DESCRIBED BY METES
AND BOUNDS AS FOLLOWS:

 

FROM THE SOUTHWEST CORNER OF SECTION 27;

 

THENCE NORTH 86 DEGREES 13 MINUTES 45 SECONDS EAST, A DISTANCE
OF 2448.25 FEET TO A CONCRETE MONUMENT MARKED 1/4 ON THE WEST FACE, WITH AN ALUMINUM CAP MARKED LS 13010, ACCEPTED BY JOHN A. LUCKOW,
ARIZONA REGISTERED LAND SURVEYOR, AS THE TRUE LOCATION OF THE SOUTH QUARTER CORNER OF RECORD OF SURVEY DATED FEBRUARY 24, 1990,
RECORDED IN BOOK 10 OF LAND SURVEYORS, PAGE 99, YAVAPAI COUNTY RECORDERS OFFICE, WHICH IS IDENTICAL TO THE SOUTHEAST CORNER OF
THE PROPERTY AS CONVEYED TO HARRIET KOHLER (ALSO KNOWN AS HARRIET K. SEAMAN) BY INSTRUMENTS RECORDED IN THE OFFICE OF THE RECORDER
OF YAVAPAI COUNTY, ARIZONA, IN BOOK 179 OF DEEDS, PAGE 586 AND IN BOOK 357 OF OFFICIAL RECORDS, PAGE 233 AND WHICH IS ALSO IDENTICAL
TO THE NORTHEAST CORNER OF PARCEL 4 ABOVE, ACCEPTED AND UTILIZED AS THE QUARTER CORNER BETWEEN SECTIONS 27 AND 34, PRIOR TO THE
1956 GLO DEPENDENT RESURVEY OF SECTION 27 BY WHICH THE QUARTER CORNER BETWEEN SECTIONS 27 AND 35 HAS BEEN MARKED BY A STANDARD
GLO BRASS CAPPED PIPE, WHICH IS THE SAME GLO BRASS CAP ESTABLISHING THE SOUTHEAST CORNER OF THE PROPERTY DESCRIBED IN PARCEL 4
ABOVE;

 

THENCE SOUTH 85 DEGREES 13 MINUTES 00 SECONDS WEST, 15.05 FEET,
TO THE TRUE POINT OF BEGINNING OF THIS DESCRIPTION:

 

THENCE NORTH 07 DEGREES 16 MINUTES 03 SECONDS
EAST, 55.48 FEET;

 

THENCE NORTH 00 DEGREES 25 MINUTES 35 SECONDS EAST, 201.21 FEET
TO THE EAST LINE OF THE KOHLER PARCEL AS DESCRIBED IN WARRANTY DEED RECORDED IN BOOK 179 OF DEEDS, PAGE 586, YAVAPAI COUNTY RECORDERS
OFFICE, STATE OF ARIZONA;

 

THENCE NORTH 00 DEGREES 25 MINUTES 35 SECONDS EAST, 283.79 FEET
TO THE P.C. OF A CURVE, HAVING A RADIUS OF 215.00 FEET AND A CENTRAL ANGLE OF 18 DEGREES 55 MINUTES 40 SECONDS;

 

THENCE NORTHERLY ALONG A CURVE TO THE LEFT, AN ARC DISTANCE
OF 71.03 FEET, TO THE EAST LINE OF THE KOHLER PARCEL AND THE BEGINNING OF A CURVE, HAVING A RADIUS OF 215.00 FEET AND A CENTRAL
ANGLE OF 18 DEGREES 53 MINUTES 55 SECONDS;

 

THENCE NORTHERLY ALONG A CURVE TO THE LEFT, AN ARC DISTANCE
OF 70.92 FEET TO THE PT.;

  

Special Warranty Deed (LaMerra) – Ex.
A

 

    	3

    	 

     

THENCE NORTH 37 DEGREES 24 MINUTES 00 SECONDS WEST, 164.52 FEET
TO THE P.C. OF A CURVE, HAVING A RADIUS OF 130.00 FEET AND A CENTRAL ANGLE OF 07 DEGREES 11 MINUTES 55 SECONDS;

 

THENCE NORTHWESTERLY ALONG A CURVE TO THE LEFT, AN ARC DISTANCE
OF 16.33 FEET TO THE NORTH LINE OF THE KOHLER PARCEL AND THE BEGINNING OF A CURVE, HAVING A RADIUS OF 130.00 FEET AND A CENTRAL
ANGLE OF 32 DEGREES 59 MINUTES 56 SECONDS;

 

THENCE NORTHWESTERLY ALONG A CURVE TO THE LEFT, AN ARC DISTANCE
OF 74.87 FEET TO THE P.T.;

 

THENCE NORTH 77 DEGREES 35 MINUTES 51 SECONDS WEST, 92.01 FEET
TO THE P.C. OF A CURVE, HAVING A RADIUS OF 250.00 FEET AND A CENTRAL ANGLE OF 10 DEGREES 44 MINUTES 58 SECONDS;

 

THENCE WESTERLY ALONG A CURVE TO THE LEFT, AN ARC DISTANCE OF
46.90 FEET TO THE NORTH LINE OF THE KOHLER PARCEL AND THE BEGINNING OF A CURVE, HAV1NG A RADIUS OF 250.00 FEET AND A CENTRAL ANGLE
OF 10 DEGREES 51 MINUTES 24 SECONDS;

 

THENCE WESTERLY ALONG A CURVE TO THE LEFT, AN ARC DISTANCE OF
47.37 FEET TO THE P.T.;

   

THENCE SOUTH 80 DEGREES 47 MINUTES 47 SECONDS WEST, 160.95 FEET;

 

THENCE SOUTH 84 DEGREES 31 MINUTES 30 SECONDS WEST, 60.56 FEET
TO THE TERMINUS OF THIS DESCRIPTION AT THE WEST LINE OF THE KOHLER PARCEL, THE NORTHWEST CORNER OF WHICH BEARS NORTH 01 DEGREES
01 MINUTES 44 SECONDS WEST, A DISTANCE OF 116.37 FEET.

 

PARCEL NO. 7:

 

EASEMENT FOR IRRIGATION DITCH PURPOSES AS CREATED IN BOOK 2250,
OF OFFICIAL RECORDS, PAGE 382, OVER AND ACROSS THE REAL PROPERTY DESCRIBED BELOW. THE CENTERLINE OF THE EASEMENT IS THE CENTERLINE
OF THE EXISTING DITCH AND THE EASEMENT IS OF THE WIDTH REASONABLY NECESSARY FOR THE MAINTENANCE AND OPERATION OF THE DITCH.

 

REAL PROPERTY WHICH EASEMENT CROSSES IS DESCRIBED AS FOLLOWS:

 

THE FOLLOWING DESCRIBED PORTION OF THE EAST HALF OF THE SOUTHEAST
QUARTER OF THE SOUTHWEST QUARTER OF SECTION 27, TOWNSHIP 17 NORTH OF RANGE 5 EAST OF THE GILA AND SALT RIVER BASE AND MERIDIAN,
YAVAPAI COUNTY, ARIZONA, TO WIT:

 

BEGINNING AT THE QUARTER CORNER BETWEEN SECTIONS 27 AND 34,
ABOVE TOWNSHIP AND RANGE, SAID CORNER BEING MARKED BY A STONE MONUMENT, WHICH WAS ACCEPTED BY JIM LAMPORT, SURVEYOR IN 1928, AND
BY OLD SETTLERS FOR MANY YEARS;

 

THENCE FROM SAID POINT NORTH ON THE QUARTER SECTION LINE THROUGH
THE CENTER OF SAID SECTION 27, (THIS LINE BEING ASSUMED NORTH FOR THE PURPOSE OF THIS DESCRIPTION) 774.0 FEET TO A STONE MONUMENT;

  

Special Warranty Deed (LaMerra) – Ex.
A

 

    	4

    	 

     

THENCE NORTH 73 DEGREES 34 MINUTES WEST, 659.6 FEET TO A STONE
MONUMENT;

 

THENCE SOUTH 03 DEGREES 45 MINUTES WEST, 1021.3 FEET TO A STONE
MONUMENT ON THE SOUTH LINE OF Said) SECTION 27;

 

THENCE NORTH 85 DEGREES 13 MINUTES EAST, 701.9 FEET ALONG SAID
SECTION LINE TO THE POINT OF BEGINNING.

 

PARCEL NO. 8:

 

A NON-EXCLUSIVE EASEMENT FOR ROADWAY AND UTILITY PURPOSES OVER,
ACROSS AND UNDER THE FOLLOWING DESCRIBED PARCEL:

 

A PORTION OF THE SOUTHWEST QUARTER OF THE SOUTHEAST QUARTER
OF SECTION 27, TOWNSHIP 17 NORTH, RANGE 5 EAST OF THE GILA AND SALT RIVER BASE AND MERIDIAN, YAVAPAI COUNTY, ARIZONA;

 

BEGINNING AT A POINT ON THE WEST LINE OF THE SOUTHWEST QUARTER
OF THE SOUTHEAST QUARTER OF SECTION 27 BEARING NORTH 01 DEGREES 29 MINUTES 54 SECONDS WEST, A DISTANCE OF 600 FEET FROM THE SOUTH
QUARTER CORNER OF SECTION 27 MARKED BY A G.L.O. BRASS CAP;

 

THENCE NORTH 01 DEGREES 29 MINUTES 54 SECONDS WEST ALONG THE
WEST LINE OF THE SOUTHWEST QUARTER OF THE SOUTHEAST QUARTER OF SECTION 27, A DISTANCE OF
180.05 FEET;

 

THENCE SOUTH 35 DEGREES 58 MINUTES 39 SECONDS EAST, A DISTANCE
OF 44.71 FEET;

 

THENCE SOUTH 0 DEGREES 48 MINUTES 45 SECONDS WEST, A DISTANCE
OF 143.31 FEET;

 

THENCE SOUTH 88 DEGREES 30 MINUTES 06 SECONDS WEST, A DISTANCE
OF 19.54 FEET TO THE PLACE OF BEGINNING.

 

PARCEL NO. 9:

 

A NON-EXCLUSIVE EASEMENT FOR ROADWAY AND UTILITY PURPOSES AS
CREATED IN BOOK 938 OF OFFICIAL RECORDS, PAGE 65, OVER, ACROSS AND UNDER THE FOLLOWING DESCRIBED PARCELS:

 

PARCEL A:

 

THE FOLLOWING DESCRIBED PORTION OF THE SOUTHWEST QUARTER OF
THE SOUTHEAST QUARTER OF SECTION 27, TOWNSHIP 17 NORTH, RANGE 5 EAST OF THE GILA AND SALT RIVER BASE AND MERIDIAN, YAVAPAI COUNTY,
ARIZONA;

 

BEGINNING AT A POINT ON THE WEST LINE OF THE SOUTHWEST QUARTER
OF THE SOUTHEAST QUARTER OF SECTION 27 BEARING NORTH 01 DEGREES 29 MINUTES 54 SECONDS WEST, A DISTANCE OF 115.84 FEET FROM THE
SOUTH QUARTER CORNER OF SECTION 27, MARKED BY A G.L.O. BRASS CAP;

 

THENCE NORTH 01 DEGREES 29 MINUTES 54 SECONDS WEST ALONG THE
WEST LINE OF THE SOUTHWEST QUARTER OF THE SOUTHEAST QUARTER OF SECTION 27, A DISTANCE OF 484.16 FEET;

 

Special Warranty Deed (LaMerra) – Ex.
A

 

    	5

    	 

     

THENCE NORTH 88 DEGREES 30 MINUTES 06 SECONDS EAST, A DISTANCE
OF 19.54 FEET;

 

THENCE SOUTH 0 DEGREES 48 MINUTES 45 SECONDS WEST, A DISTANCE
OF 484.55 FEET TO THE PLACE OF BEGINNING.

 

PARCEL B:

 

A PORTION OF THE EAST HALF OF THE SOUTHEAST QUARTER OF THE SOUTHWEST
QUARTER OF SECTION 27, TOWNSHIP 17 NORTH, RANGE 5 EAST OF THE GILA AND SALT RIVER BASE AND MERIDIAN, YAVAPAI COUNTY, ARIZONA;

 

BEGINNING AT A POINT ON THE EAST LINE OF THE SOUTHEAST QUARTER
OF THE SOUTHWEST QUARTER OF SECTION 27 BEARING NORTH 01 DEGREES 29 MINUTES 54 SECONDS WEST, A DISTANCE OF 889.73 FEET FROM THE
SOUTH QUARTER CORNER OF SECTION 27 MARKED BY A G.L.O. BRASS CAP;

 

THENCE NORTH 73 DEGREES 03 MINUTES 08 SECONDS WEST, A DISTANCE
OF 103.00 FEET TO THE TRUE POINT OF BEGINNING;

 

THENCE NORTH 73 DEGREES 03 MINUTES 08 SECONDS WEST, A DISTANCE
OF 303.41 FEET. (THE DIRECTION AND LOCATIONS OF THE ABOVE LINE DETERMINED BY STONE MONUMENTS AS CALLED FOR IN THAT CERTAIN DEED
OF CORRECTION OF RECORD IN THE OFFICE OF THE COUNTY RECORDER, YAVAPAI COUNTY, ARIZONA, IN BOOK 172 OF DEEDS, PAGE 495 THEREOF);

 

THENCE NORTH 82 DEGREES 32 MINUTES 53 SECONDS EAST, A DISTANCE
OF 67.32 FEET;

 

THENCE SOUTH 75 DEGREES 10 MINUTES 23 SECONDS EAST, A DISTANCE
OF 195.82 FEET;

 

THENCE SOUTH 35 DEGREES 58 MINUTES 39 SECONDS EAST, A DISTANCE
OF 58.16 FEET TO THE PLACE OF BEGINNING.

 

PARCEL NO. 10:

 

A NON-EXCLUSIVE EASEMENT FOR ROADWAY AND PUBLIC UTILITY PURPOSES
AS CREATED IN BOOK 1920 OF OFFICIAL RECORDS, PAGE 314, EMBRACING ALL OF THE FOLLOWING DESCRIBED PROPERTY:

 

A PARCEL OF LAND LYING IN THE SOUTHWEST QUARTER OF SECTION 27,
TOWNSHIP 17 NORTH, RANGE 5 EAST OF THE GILA AND SALT RIVER BASE AND MERIDIAN, YAVAPAI COUNTY, ARIZONA, BEING MORE PARTICULARLY
DESCRIBED AS FOLLOWS:

 

BEGINNING AT THE SOUTH QUARTER CORNER OF SECTION 27, TOWNSHIP
17 NORTH, RANGE 5 EAST;

 

THENCE SOUTH 88 DEGREES 53 MINUTES 57 SECONDS WEST, A DISTANCE
OF 612.24 FEET TO THE SOUTHEAST CORNER OF THE SOUTHWEST QUARTER OF THE SOUTHEAST QUARTER OF THE SOUTHWEST QUARTER OF SECTION 27;

 

THENCE NORTH 01 DEGREES 11 MINUTES 29 SECONDS WEST, A DISTANCE
OF 946.77 FEET TO THE TRUE POINT OF BEGINNING;

 

Special Warranty Deed (LaMerra) – Ex.
A

 

    	6

    	 

     

THENCE SOUTH 85 DEGREES 55 MINUTES 21 SECONDS WEST, A DISTANCE
OF 113.99 FEET;

 

THENCE NORTH 24 DEGREES 08 MINUTES 42 SECONDS WEST, A DISTANCE
OF 61.87 FEET TO A POINT ON A CURVE HAVING A CENTRAL ANGLE OF 141 DEGREES 20 MINUTES 20 SECONDS, A RADIUS OF 131.79 FEET;

 

THENCE ALONG THE ARC OF SAID CURVE, A DISTANCE
OF 50.30 FEET;

 

THENCE SOUTH 24 DEGREES 08 MINUTES 42 SECONDS EAST, A DISTANCE
OF 26.91 FEET;

 

THENCE NORTH 85 DEGREES 55 MINUTES 21 SECONDS EAST, A DISTANCE
OF 81.55 FEET;

 

THENCE SOUTH 01 DEGREES 11 MINUTES 29 SECONDS EAST, A DISTANCE
OF 50.06 FEET TO THE TRUE POINT OF BEGINNING.

 

TOGETHER WITH THE RIGHT TO IMPROVE AND MAINTAIN THE EXISTING
ROAD AND TO RECONSTRUCT AND ENLARGE THE ROAD TO UTILIZE ALL OF THE EASEMENT PROPERTY OR ANY PART THEREOF FOR ROADWAY PURPOSES.

 

PARCEL NO. 11:

 

AN EASEMENT APPURTENANT TO PARCELS 1, 2, 3, 4 AND 5 ABOVE, FOR
ROADWAY AND PUBLIC UTILITIES CREATED IN BOOK 1920, OF OFFICIAL RECORDS, PAGE 307, OVER THAT PORTION OF THE RED ROCK LOOP ROAD DESCRIBED
IN THE ATTACHMENT TO THE INSTRUMENT OF RECORD IN BOOK 915, OF OFFICIAL RECORDS, PAGES 795-803, INCLUSIVE, RECORDS OF YAVAPAI COUNTY,
ARIZONA, LYING WITHIN THE EAST ONEHALF, WEST ONE-HALF, SOUTHEAST QUARTER, SOUTHWEST QUARTER, SECTION 27, TOWNSHIP 17 NORTH, RANGE
5 EAST OF THE GILA AND SALT RIVER BASE AND MERIDIAN, YAVAPAI COUNTY, ARIZONA.

 

EXCEPTING FROM THE ABOVE PARCELS THE FOLLOWING PROPERTY:

Lot 11, THE RETREAT AT OAK CREEK, according to Book 59 of Maps,
pages 99 through 104, inclusive, records of Yavapai County, Arizona.

 

AND

 

Lots 2, 9, 10, 12, 13, 14, 17, 18 and 19, LAMERRA, according
to Book 61 of Maps, pages 27 through 32, inclusive, records of Yavapai County, Arizona.

 

Special Warranty Deed
(LaMerra) – Ex. A

 

 

    	7

    	 

     

EXHIBIT B

 

PERMITTED ENCUMBRANCES

 

1. Property taxes, which are a lien not yet due and
payable, including any assessments collected with taxes to be levied for the year 2013.

 

5.LIABILITIES AND OBLIGATIONS imposed
upon said land by reason of its inclusion within the following named District

Retreat at Oak Creek Domestic Water Improvement District

 

6.EASEMENT and rights incident thereto,
as set forth in instrument: Recorded in Book 184 of Deeds

Page 449

Purpose telephone lines

 

7.EASEMENT and rights incident thereto,
as set forth in instrument Recorded in Book 188 of Deeds

Page 452

Purpose electric power transmission line

 

8.EASEMENT and rights incident thereto,
as set forth in instrument: Recorded in Book 217 of Official Records

Page 239

Purpose ingress and egress

 

9.EASEMENT and rights incident thereto,
as set forth in instrument Recorded in Book 1351 of Official Records

Page 220

Purpose electric transmission line

 

10.         EASEMENT
and rights incident thereto, as set forth in instrument: Recorded in Book 1351 of Official Records

Page 286

Purpose electric transmission line

 

11.          EASEMENT
and rights incident thereto, as set forth in instrument: Recorded in Book 1351 of Official Records

Page 314

Purpose electric lines

 

12.         EASEMENT
and rights incident thereto, as set forth in instrument: Recorded in Book 1351 of Official Records

Page 319

Purpose electric lines

 

Special Warranty Deed (LaMerra)
– Ex. A

 

    	8

    	 

     

13.         EASEMENT
and rights incident thereto, as set forth in instrument:

Recorded in Book 3833 of Official Records Page 934

Purpose access and utilities

 

14. MATTERS SHOWN ON SURVEY:
Recorded in Book 164 of Land Surveys

Page 57

 

15. Covenants, conditions,
restrictions and easements but omitting any covenants or restrictions, if any, including but not limited to those based upon race,
color, religion, sex, sexual orientation, familial status, marital status, disability, handicap, national origin, ancestry, source
of income, gender, gender identity, gender expression, medical condition or genetic information, as set forth in applicable state
or federal laws, except to the extent that said covenant or restriction is permitted by applicable law, as set forth in the document

Recorded in Book 4513 of Official Records

Page 848

Liens and charges as set forth in the above mentioned declaration,

Payable to: The Retreat Property Company, L.L.C., an Arizona
limited liability company

 

16. EASEMENTS, RESTRICTIONS,
RESERVATIONS, CONDITIONS AND SET-BACK LINES as set forth on the plat recorded in Book 61 of Maps and Plats, page 27, but deleting
any covenants, condition or restriction indicating a preference, limitation or discrimination based on race, color, religion, sex,
handicap, familial status, or national origin to the extent such covenants, conditions or restrictions violated 42 USC 3604(c).

 

17. EASEMENT and rights incident
thereto, as set forth in instrument

Recorded in Book 4602 of Official Records

Page 218

Purpose electric lines, other utility lines and facilities

(Affects Lot 32)

 

18. EASEMENT and rights incident thereto, as set
forth in instrument:

Recorded in Book 4602 of Official Records

Page 219

Purpose electric lines, other utility lines and facilities

(Affects Lot 31)

 

19. EASEMENT and rights incident thereto, as set
forth in instrument:

Recorded in Book 4602 of Official Records

Page 220

Purpose electric lines, other utility lines and facilities

(Affects Lots 29 and 38)

 

20. EASEMENT and rights incident thereto, as set
forth in instrument Recorded in Book 4602 of Official Records

Page 221

Purpose electric lines, other utility lines and facilities

(Affects Lots 27 and 28)

 

Special Warranty Deed (LaMerra) – Ex.
A

 

    	9

    	 

     

21. EASEMENT and rights incident thereto, as set
forth in instrument:

Recorded in Book 4602 of Official Records

Page 222

Purpose electric lines, other utility lines and facilities

(Affects Lot 20)

 

22. EASEMENT and rights incident thereto, as set
forth in instr►mnent:

Recorded in Book 4602 of Official Records

Page 224

Purpose electric lines, other utility lines and facilities

(Affects Lot 16 and Tract C)

 

23. BASEMENT and rights incident thereto, as set
forth in instrument

Recorded in Book 4602 of Official Records

Page 225

Purpose electric lines, other utility lines and facilities

(Affects Lot 1)

 

24. Reservations, exceptions and provisions contained
in the patent and in the acts authorizing the issuance thereof

 

25. Water rights, claims or title to water, whether
or not disclosed by the public records.

 

26. Any rights of the parties in possession of a
portion of, or all of, said Land, which rights are not disclosed by the public records.

 

27. A deed of trust to secure an indebtedness in
the amount shown below,

Amount: $32,000,000.00

Dated: June 11, 2007

Trustor/Orantor HL, LLC

Trustee: Fidelity National Title Insurance Agency of Coconino,
Inc.

Beneficiary: IMH Secured Loan Fund, LLC

Recording Date: June 11, 2007

Book 4513 of Official Records

Page 768

An agreement to modify the terms and provisions of said deed
of trust as therein provided

Executed by: HL LLC and IMH Secured Loan Fund, LLC

Recorded April 30, 2008

Book 4592 of Official Records

Page 699

An assignment of the beneficial interest under said deed of
trust which names:

Assignee: IMH Special Asset NT 233, LLC, an Arizona limited
liability company

Recording Date: November 13, 2009

 

Special Warranty Deed (LaMerra) – Ex.
A

 

    	10

    	 

     

Recorded in Book: 4706 of Official Records

Page: 680

A partial assignment of the beneficial interest under said trust
deed

From: IMH Special Asset NT 233, LLC, an Arizona limited liability
company

Assignee: First Credit Bank, a California banking corporation

Recording Date: January 21, 2011

Recorded in Book: 4790 of Official Records

Page: 182

As to: Lots 1, 3 through 8, inclusive, 15, 16, and 20 through
38, inclusive

A collateral assignment of the beneficial interest, which names

Assignee: NWRA Ventures I, LLC, a Delaware limited liability
company

Recording Date: June 15, 2011

Recorded in Book: 4817 of Official Records

Page: 448

A partial assignment of the beneficial interest under said trust
deed

From: First Credit Bank, a California banking corporation

Assignee: IMH Special Asset NT 233, LLC, an Arizona limited
liability company

Recording Date: July 11, 2011

Recorded in Book: 4822 of Official Records

Page: 186

As to: Lots 1, 3 through 8, inclusive, 15, 16, and 20 through
38, inclusive

NOTE: Partial releases recorded January 12, 2010 in Book 4717
of Official Records, page 454

and February 12,

2010 in Book 4723 of Official Records, page 394.

 

28. A deed of trust to secure an indebtedness in the amount
shown below, Amount $20,000,000.00

Dated:____, 2013

Trustor/Grantor HL NEWCO, LLC, a Delaware limited liability
company

Trustee: Lawyers Title of Arizona, Inc

Beneficiary: NWRA VENTURES I, LLC, a Delaware limited liability
company, its successors

and/or assigns, as their respective interests may appear

Recording Date:  ', 2013

Recorded in Book:_____of Official Records

 

Special Warranty Deed (LaMerra) – Ex.
B

 

    	11

    	 

     

 

 

 

EXHIBIT
8(a)-ii

 

SPECIAL
WARRANTY DEED CONVEYING L’AUBERGE PROPERTY 

TO L’AUBERGE
NEWCO, LLC 

 

When recorded return to:

 

Jonathan T. Brohard, Esq.

Polsinelli Shughart, PC

One E. Washington St., Ste. 1200

Phoenix, AZ 85004

 

SPECIAL WARRANTY DEED

 

(L’Auberge Property)

 

L’Auberge Orchards,
LLC, an Arizona limited liability company (“Grantor”),
for the consideration of Ten Dollars, and for other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, hereby conveys to L’Auberge Newco, LLC, a Delaware limited liability company (“Grantee”),
its successors and assigns forever, that certain real property situated in the State of Arizona, and more particularly described
as:

 

See Exhibit A attached hereto

 

together with all rights, benefits, privileges,
easements, tenements, hereditaments and appurtenances thereto belonging, and the rents, issues and profits thereof and all water
rights and claims to water rights appurtenant and related thereto and wells thereon, including but not limited to those identified
by the Arizona Department of Water Resources as Nos. 36-60294.0001 and 36-69321.0001; SUBJECT TO current and future taxes and the
assessments, liens and encumbrances set forth on Exhibit B attached hereto.

 

And the GRANTOR binds
itself to warrant the title against all acts of the Grantor and none other, subject to the matters set forth above.

 

By
accepting this deed, Grantee specifically intends that a merger of title shall not occur and that that certain Construction Deed
of Trust, Assignment of Rents, Security Agreement and Fixture Filing from Grantor, as Trustor, to Transnation Title Insurance Company,
as Trustee, for the benefit of IMH Financial Corporation, f/k/a IMH Secured Loan Fund, LLC, as
Beneficiary, dated May 7, 2008, recorded in the Official Records of Coconino County, Arizona on May 9, 2008 in Instrument No. 3485966,
as the same may have been modified from time to time, shall continue as a lien on the
property.

 

This Deed is exempt
from an Affidavit of Value pursuant to ARS § 11-1134B-1.

 

    	 

    	 

     

IN WITNESS WHEREOF,
the Grantor has signed this Special Warranty Deed as of the 14th day of May, 2013.

 

[SIGNATURE ON FOLLOWING
PAGE]

 

    	2

    	 

     

	 	GRANTOR
	 	 
	 	L’Auberge OrchardS, LLC,
	 	an Arizona limited liability company
	 	 
	 	By:	 
	 	 	Albert B. Spector, Jr.
	 	 
	 	Its:	 

 

ACKNOWLEDGMENT

 

	STATE OF ARIZONA	)	 
	 	) ss	 
	COUNTY OF MARICOPA	)	 

 

On ____________________, before me, ____________________________________,
a Notary Public in and for the State of Arizona, personally appeared ______________________, personally known to me (or proved
to me on the basis of satisfactory evidence) to be the person whose name is subscribed to the within instrument and acknowledged
to me that he/she executed the same in his/her authorized capacity, and that by his/her signature on the instrument the person,
or the entity upon behalf of which _______________________________ acted, executed the instrument.

 

	 	 	 
	Signature	 	 
	My Commission Expires:	 	(Space above for official notarial seal)

 

Special Warranty Deed (L’Auberge) -
Signature

 

    	 

    	 

     

EXHIBIT A

 

LEGAL DESCRIPTION

 

(L’Auberge Property)

 

THE LAND REFERRED TO HEREIN BELOW IS SITUATED
IN THE COUNTY OF COCONINO,

STATE OF ARIZONA, AND IS DESCRIBED AS FOLLOWS:

 

PARCEL NO. 1:

 

A parcel of land situated in the West half of Section 8, Township
17 North, Range 6 East, of the Gila and Salt River Base and Meridian, Coconino County, Arizona, being more particularly described
as follows:

 

COMMENCING at the West quarter corner of said Section 8, as
marked by a B.L.M brass capped pipe under drain cover in sidewalk and from which the Southwest corner of said Section 8, as marked
by a B.L.M brass capped pipe in cairn, lies South 01 degrees 42 minutes 03 seconds East (basis of bearings for this description),
a distance of 2621.04 feet;

 

THENCE from said West quarter corner, North 12 degrees 54 minutes
17 seconds East (North 12 degrees 27 minutes 33 seconds East, record), a distance of 76.90 feet (76.90 feet record), to a point
on the Southeasterly right of way line of Arizona State Highway 89-A;

 

THENCE Northeasterly along said Southeasterly right of way line
being a non-tangent curve, concave to the Southeast, having a radius of 2150.00 feet (2,150.00 feet, record), a chord bearing of
North 23 degrees 04 minutes 02 seconds East and a central angle of 05 degrees 24 minutes 36 seconds (05 degrees 24 minutes 18 seconds,
record), an arc distance of 203.00 feet (203.00 feet, record), to a concrete nail with brass tag stamped “LS14184”
set at the position of a previously set cotton picker spindle with tag stamped “LS14184”;

 

THENCE continuing Northeasterly along said Southeasterly right
of way line, being a curve, concave to the Southeast, having a radius of 2150.00 feet (2,150.00 feet record), a chord bearing of
North 26 degrees 36 minutes 58 seconds East, a central angle of 01 degrees 41 minutes 17 seconds (01 degrees 41 minutes 39 seconds,
record), an arc distance of 63.35 feet (63.57 feet, record), to a concrete nail with brass tag stamped “LS14184” set
at the position of a previously set chiseled “+” in concrete;

 

THENCE departing said Southeasterly right of way line of Arizona
State Highway 89-A, South 89 degrees 51 minutes 31 seconds East (North 89 degrees 42 minutes 07 seconds East, record), a distance
of 3.74 feet to a point on the Northeasterly line of that certain tract of land acquired by the City of Sedona in December 2005
and described in Document No. 2005-3361777 of the Coconino County Recorder’s office in Coconino county, Arizona;

 

THENCE along the North line of the Orchards/L’Auberge
parcel, South 89 degrees 51 minutes 31 seconds East (North 89 degrees 42 minutes 07 seconds East, record), a

 

distance of 212.10 feet to a 1⁄2”
rebar with cap stamped “LS14184” (previously set); THENCE along the Northerly line of the Orchards/L’Auberge
parcel, South 40 degrees 28 minutes 17 seconds East (South 41 degrees 45
minutes 00 seconds East, record), a distance of 62.25 feet to the POINT OF BEGINNING;

 

    	 

    	 

     

THENCE South 40 degrees 28 minutes 17 seconds East (South 41
degrees 45 minutes 00 seconds East, record), a distance of 47.00 feet to a 1⁄2” rebar with tag stamped “LS14184”
(previously set);

 

THENCE North 38 degrees 57 minutes 49 seconds East, (North 38
degrees 15 minutes 00 seconds East record), a distance of 150.75 feet (152.00 feet record) to a 1⁄2” rebar with tag
stamped “LS14184” (previously set).

 

THENCE South 50 degrees 57 minutes 03 seconds East, (South 51
degrees 45 minutes 00 seconds East record), a distance of 82.00 feet (82.00 feet record) to a 1⁄2” rebar with tag stamped
“LS14184” (previously set);

 

THENCE North 57 degrees 27 minutes 57 seconds East (North 56
degrees 40 minutes 00 seconds East record), a distance of 26.55 feet (26.5 feet record) to a 1⁄2” rebar with tag stamped
“LS14184” (previously set);

 

THENCE South 32 degrees 32 minutes 03 seconds East (South 33
degrees 20 minutes 00 seconds East record), a distance of 523.60 feet (542.50 feet record) to a point in Oak Creek that lies on
the Northwesterly boundary of the “Brewer Tract”, described in Docket 510, page 496, of the Coconino County Recorder’s
Office and from which a 1⁄2” rebar with tag stamped “LS14184” previously set as a witness corner lies, North
32 degrees 32 minutes 03 seconds West, a distance of 100.00 feet;

 

THENCE South 51 degrees 44 minutes 33 seconds West (no record)
a distance of 6.59 feet (no record) to the Westerly corner of said “Brewer Tract” being a portion in Oak Creek;

 

THENCE South 54 degrees 01 minutes 27 seconds East (no record),
a distance of 19.52 feet (no record) along the Southwesterly boundary of said “Brewer Tract” to a point in Oak Creek;

 

THENCE South 52 degrees 31 minutes 27 seconds West (South 51
degrees 43 minutes 30 seconds West, record), a distance of 11.99 feet (11.40 feet record) to a point in Oak Creek;

 

THENCE South 69 degrees 02 minutes 57 seconds West (South 68
degrees 15 minutes 00 seconds West record), a distance of 166.54 feet (166.54 feet) to a point in Oak Creek;

 

THENCE South 48 degrees 22 minutes 03 seconds East (South 49
degrees 10 minutes 00 seconds East, record), a distance of 60.39 feet (60.40 feet record), to a 1⁄2” rebar with tag
stamped “PE2924” (previously set);

 

THENCE South 63 degrees 20 minutes 02 seconds West, (South 62
degrees 02 minutes 45 seconds West, record), a distance of 835.28 feet (832.38 feet record) to a point in Oak Creek that is on
the West line of said Section 8 and lies South 01 degrees 42 minutes 03 seconds East, a distance of 624.60 feet from said West
quarter corner of Section 8;

 

THENCE North 01 degrees 42 minutes 03 seconds West (North 02
degrees 30 minutes 00 seconds West, record), a distance of 447.60 feet (447.60 feet record) along said West line of Section 8 to
a 1⁄2” rebar with tag stamped “LS14184” (previously set);

 

THENCE North 38 degrees 37 minutes 57 seconds East (North 37
degrees 50 minutes 00 seconds East, record), a distance of 207.55 feet to a 1⁄2” rebar with tag stamped “LS14184”
(previously set);

 

    	2

    	 

     

THENCE North 38 degrees 09 minutes 30 seconds East (North 37
degrees 50 minutes 00 seconds East, record), a distance of 109.23 feet to a 1⁄2” rebar with no identification (previously
found):

 

THENCE North 49 degrees 44 minutes 02 seconds East, a distance
of 94.50 feet;

 

THENCE North 37 degrees 42 minutes 35 seconds East, a distance
of 174.72 feet to the POINT OF BEGINNING.

 

EXCEPTING THEREFROM the following described property:

 

A parcel of land being a portion of “Parcel 1B”
as said “Parcel 1B” is shown and described on that certain ALTA/ACSM Land Title Survey map recorded as instrument number
3490268 in the Official Records of Coconino County, said parcel being situated in the West half of Section 8, Township 17 North,
Range 6 East of the Gila and Salt River Base and Meridian in Coconino County, Arizona, and being more particularly described as
follows:

 

COMMENCING
at the West quarter corner of said Section 8, as marked by a G.L.O. brass capped pipe under drain cover in sidewalk and from which
the Southwest corner of said Section 8, as marked by a B.L.M brass capped pipe in cairn, lies South 01°42’03”
East (basis of bearings for this description), a distance of 2621.04 feet;

 

Thence
from said West quarter corner, along the West line of the Southwest quarter of said Section 8, South 01°42’03”
East, a distance of 624.60 feet to the Southwest corner of said “Parcel 1B”;

 

Thence
along the Southerly boundary of said “Parcel 1B”, North 63°20’02”
East a distance of 579.51 feet to the POINT OF BEGINNING;

 

Thence
continuing along said Southerly boundary of “Parcel 1B”, North 63°20’02”
East a distance of 255.77 feet;

 

Thence continuing along said Southerly boundary of “Parcel
1B”, North 48°22’03” West a distance
of 60.39 feet;

 

Thence
continuing along said Southerly boundary of “Parcel 1B”, North 69°02’57”
East a distance of 32.29 feet to the most Northerly corner of the Weckerly parcel as described in Docket 1525, pages 007-009 of
the Coconino County Recorder’s Office;

 

Thence
along a prolongation of the Northeasterly boundary of said Weckerly parcel, North 54°01’29”
West a distance of 23.88 feet, more or less, to the centerline of Oak Creek as it may exist from time to time in the future;

 

Thence
along said centerline of Oak Creek, as it may exist from time to time in the future, an approximate bearing of South 65°34’01”
West a distance of 111.83 feet, more or less;

 

Thence
continuing along said centerline of Oak Creek, as it may exist from time to time in the future, an approximate bearing of South
69°31’14”
West a distance of 163.52 feet, more or less, to the intersection of said centerline of Oak Creek with the Northwesterly prolongation
of the Southwesterly boundary of the Miller parcel as described in Docket 1478, pages 378 & 378A of the Coconino County Recorder’s
Office;

 

Thence
in a reversed direction of said Northwesterly prolongation of the Southwesterly boundary of the Miller parcel, South 38°15’58”
East a distance of 98.08 feet, more or less, to the POINT OF BEGINNING.

 

    	3

    	 

     

PARCEL NO. 2:

 

An easement for ingress, egress and public utilities created
by instrument recorded December 22, 1982, in Docket 911, page 206, records of Coconino County, Arizona, more particularly described
as follows:

 

A strip of land 33.00 feet wide situated in the Southeast quarter
of Section 7, Township 17 North, Range 6 East, of the Gila and Salt River Base and Meridian, Coconino County, Arizona, being more
particularly defined as lying 16.50 feet on each side of the following described centerline:

 

COMMENCING at the East quarter corner of said Section 7, as
marked by a GLO brass capped pipe under drain cover in sidewalk and from which the Southeast corner of said Section 7, as marked
by a B.L.M. brass capped pipe, lies South 01 degrees 42 minutes 03 seconds East (basis of bearings for this description), a distance
of 2621.04 feet;

 

THENCE South 01 degrees 42 minutes 03 seconds East (South 02
degrees 30 minutes 00 seconds East, recorded), a distance of 261.40 feet (261.4 feet record) along the East line of said Southeast
quarter of Section 7 to the POINT OF BEGINNING of this center line (side lines of strip of land begin on said East line);

 

THENCE South 28 degrees 37 minutes 57 seconds West (South 27
degrees 50 minutes 00 seconds West record), a distance of 500.20 feet (500.2 feet record);

 

THENCE South 37 degrees 53 minutes 57 seconds West (South 37
degrees 06 minutes 00 seconds West, record), a distance of 330.00 feet (330.00 feet record) to the terminus of center
line:

 

EXCEPT therefrom all that portion thereof lying within the right
of way of Arizona Highway 89-A;

 

PARCEL NO. 3:

 

A perpetual, non-exclusive easement for ingress and egress as
set forth in that certain easement agreement recorded April 25, 2002 in instrument number 2002-3138455 and re-recorded July 18,
2005 in instrument number 2005-3332653 of Official Records, Coconino County, Arizona.

 

PARCEL NO. 4:

 

A parcel of land being a portion of the “Pacini Tract”
described in Parcel II in Docket 1711, page 863 and 864 of the Coconino County Recorders Office and situated in the West half of
Section 8, Township 17 North, Range 6 East, of the Gila and Salt River Base and Meridian, Coconino County, Arizona, said parcel
being more particularly described as follows:

 

COMMENCING at the West quarter corner of said Section 8, as
marked by a B.L.M brass capped pipe under drain cover in sidewalk and from which the Southwest corner of said Section 8, as marked
by a B.L.M brass capped pipe in cairn, lies South 01 degrees 42 minutes 03 seconds East (basis of bearings for this description),
a distance of 2621.04 feet;

 

    	4

    	 

     

THENCE from said West quarter corner, North 21 degrees 27 minutes
04 seconds East, a distance of 342.00 feet (North 20 degrees 32 minutes East, a distance of 342 feet, record) to a 1⁄2”
rebar with tag stamped “LS14184” set at the position of a previously set chiseled “+” in concrete (previously
set) on the Southeasterly right of way line of Arizona Highway 89-A;

 

THENCE departing said Southeasterly right of way line of Arizona
Highway 89-A South 89 degrees 51 minutes 31 seconds East, a distance of 215.83 feet (North 89 degrees 10 minutes East, a distance
of 217.50 feet record), to a 1⁄2” rebar with plastic cap stamped “LS14184” (found);

 

THENCE South 40 degrees 28 minutes 17 seconds East, a distance
of 109.25 feet (South 41 degrees 45 minutes East, a distance of 110.77 feet record) to a 1⁄2” rebar with plastic cap
stamped “LS14184” (previously set);

 

THENCE North 38 degrees 57 minutes 49 seconds East, a distance
of 150.75 feet (North 38 degrees 15 minutes East, a distance of 152.0 feet record), to a 1⁄2” rebar with tag stamped
“LS14184” (previously set) at a corner of said “Pacini Tract”;

 

THENCE along the boundary of said “Pacini Tract”
South 50 degrees 57 minutes 03 seconds East, a distance of 82.00 feet (same as record) to a 1⁄2” rebar with tag stamped
“LS14184” (found) at a corner thereof;

 

THENCE continuing along the boundary of said “Pacini Tract”
North 57 degrees 27 minutes 57 seconds East, a distance of 26.55 feet (same as record) to a 1⁄2” rebar with tag stamped
“LS14184” (found) at a corner thereof;

 

THENCE continuing along the boundary of said “Pacini Tract”,
South 32 degrees 32 minutes 03 seconds East, a distance of 5.00 feet to the POINT OF BEGINNING;

 

THENCE North 57 degrees 27 minutes 57 seconds East, a distance
of 58.00 feet to a 1⁄2” rebar with tag stamped “LS14184”;

 

THENCE North 89 degrees 27 minutes 57 seconds East, a distance
of 35.39 feet to a 1⁄2” rebar with tag stamped “LS14184”;

 

THENCE South 00 degrees 32 minutes 03 seconds East, a distance
of 163.25 feet to a 1⁄2” rebar with tag stamped “LS14184”;

 

THENCE South 32 degrees 32 minutes 03 seconds East, a distance
of 215.13 feet to a 1⁄2” rebar with tag stamped “LS14184”;

 

THENCE South 31 degrees 56 minutes 49 seconds East, a distance
of 146.28 feet to a point on the Northwesterly boundary of the “Brewer Tract” as described in Docket 510, page 496
of the Coconino County Recorder’s Office and the Southwest corner of the said “Pacini Tract” and from which a
1⁄2” rebar with brass tag stamped “LS14184” (previously set as a witness corner) bears North 32 degrees
32 minutes 03 seconds West, a distance of 100.00 feet;

 

THENCE along the Westerly boundary of the said “Pacini
Tract”, North 32 degrees 32 minutes 03 seconds West, a distance of 518.60 feet to the POINT OF BEGINNING.

 

    	5

    	 

     

PARCEL NO. 5:

 

INTENTIONALLY DELETED.

 

    	6

    	 

     

EXHIBIT B

 

PERMITTED ENCUMBRANCES

 

PART I

 

	 	1.	Property taxes, which are a lien not yet due and payable, including any assessments collected with taxes to be levied for the year 2013.

 

	 	2.	Reservations contained In the Patent

 

	From:	The United States of America
	Recording Date:	November 26, 1915
	Recording No:	Book 43 of Deeds, page 246 (portion in the Southwest quarter of Section 8); and
	Recording Date:	June 28, 1916
	Recording No:	Book 43 of Deeds, page 626 (portion in the Northwest quarter of Section 8)

 

Which among other things recites as follows:

 

Subject to any vested and
accrued water rights for mining, agricultural, manufacturing, or other purposes and rights to ditches and reservoirs used in connection
with such water rights, as may be recognized and acknowledged by the local customs, laws and decisions of the courts, and the reservation
from the lands hereby granted, a right of way thereon for ditches or canals constructed by the authority of the United States.

 

	 	3.	Water rights, claims or title to water, whether or not disclosed by the public records.

 

	 	4.	INTENTIONALLY DELETED

 

	 	5.	Easement(s) for the purpose(s) shown below and rights incidental thereto as set forth in a document:

 

	Purpose:	gas pipelines
	Recording No:	Docket 262, page 637
	(Parcels 3 and 4)	 

 

	 	6.	Easement(s) for the purpose(s) shown below and rights incidental thereto as set forth In a document:

 

	Purpose:	highway purposes and slope maintenance
	Recording No:	Docket 319, page 547
	(Parcel 2)	 

 

	 	7.	INTENTIONALLY DELETED

 

	 	8.	Easement(s) for the purpose(s) shown below and rights incidental thereto as set forth in a document:

 

	Purpose:	communication lines and appurtenant facilities
	Recording No:	Docket 945, page 417
	(Parcel 1)	 

 

    	7

    	 

     

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PM

 

SCHEDULE B-Part I

(Continued)

 

	 	9.	Easement(s) for the purpose(s) shown below and rights incidental thereto as set forth in a document:

 

	Purpose:	water lines and appurtenant facilities
	Recording No:	Docket 945, page 423
	(Parcel 1)	 

 

	 	10.	Easement(s) for the purpose(s) shown below and rights incidental thereto as set forth in a document:

 

	Purpose:	gas pipelines and appurtenant facilities
	Recording No:	Docket 945, page 425
	(Parcel 1)	 

 

	 	11.	Easement(s) for the purpose(s) shown below and rights incidental thereto as set forth In a document:

 

	Purpose:	water lines and appurtenant facilities
	Recording No:	Docket 945, page 628
	(Parcel 2)	 

 

	 	12.	Easement(s) for the purpose(s) shown below and rights incidental thereto as set forth in a document:

 

	Purpose:	ingress and egress and public utilities
	Recording No:	Docket 954, page 152
	(Parcel 1)	 

 

	 	13.	Easement(s) for the purpose(s) shown below and rights Incidental thereto as set forth in a document:

 

	Purpose:	drainage for State Highway 89A
	Recording No:	Docket 1002, page 347
	(Parcel 1)	 

 

	 	14.	Easement(s) for the purpose(s) shown below and rights incidental thereto as set forth in a document:

 

	Purpose:	pipelines and appurtenant facilities
	Recording No:	Docket 1050, page 348
	(Parcel 1)	 

 

	 	15.	Easement(s) for the purpose(s) shown below and rights incidental thereto as set forth in a document:

 

	Purpose:	pipelines and appurtenant facilities
	Recording No:	Docket 1050, page 700
	(Parcel 1)	 

 

	 	16.	INTENTIONALLY DELETED

 

	 	17.	Easement(s) for the purpose(s) shown below and rights incidental thereto as set forth In a document:

 

	Purpose:	communication lines and appurtenant facilities
	Recording No:	Docket 1050, page 708
	(Parcel 1)	 

 

	 	18.	Easement(s) for the purpose(s) shown below and rights incidental thereto as set forth in a document:

 

	Purpose:	ditch
	Recording No:	Docket 1548, page 247 ;and
	Recording No:	Docket 1573, page 730
	(Parcel 1)	 

 

    	8

    	 

     

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PM

 

SCHEDULE B—Part

(Continued)

 

	 	19.	Easement(s) for the purpose(s) shown below and rights incidental thereto as set forth In a document:

 

	Purpose:	communication lines and appurtenant facilities
	Recording No:	Docket 1783, page 608
	(Parcel 1)	 

 

	 	20.	TERMS, COVENANTS AND PROVISIONS of an "Easement" recorded November 8, 2000, in Recording No. 3070720.

(Parcel 2)

 

	 	21.	TERMS, COVENANTS AND PROVISIONS of an "Easement Agreement" recorded April 25, 2002 in Recording No. 3138455 and re-recorded July 18, 2005 in Recording No. 3332653.

(Parcel 3)

 

	 	22.	INTENTIONALLY DELETED

 

	 	23.	INTENTIONALLY DELETED

 

	 	24.	INTENTIONALLY DELETED

 

	 	25.	Waiver of Rights and Remedies under A.R.S. 12-1134, recorded in Recording No. 3508822.

 

	 	26.	Waiver of Rights and Remedies under A.R.S. 12-1134, recorded In Recording No. 3508823.

 

	 	27.	Waiver of Rights and Remedies under A.R.S. 12-1134, recorded in Recording No. 3508824.

 

	 	28.	Easement(s) for the purpose(s) shown below and rights incidental thereto as set forth in a document:

 

	Purpose:	water lines
	Recording No:	3518961
	(Parcel 1 and 4)	 

 

	 	29.	Easement(s) for the purpose(s) shown below and rights Incidental thereto as set forth in a document:

 

	Purpose:	utilities
	Recording No:	3519923
	(Parcel 1)	 

 

	 	30.	Matters contained in that certain document

  

	Entitled:	Second Amended Development Agreement
	Executed by:	City of Sedona, an Arizona municipal corporation and L'Auberge Orchards, LLC, an Arizona limited liability company
	Recording Date:	March 15, 2010
	Recording No.:	3555969 and 3555971

 

	 	31.	Easement(s) for the purpose(s) shown below and rights Incidental thereto as set forth In a document:

 

	Purpose:	Use and License Agreement
	Recording Date:	January 27, 2010
	Recording No:	3551953

 

    	9

    	 

     

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PM

 

SCHEDULE B—Part I

(Continued)

 

	 	32.	Covenants, conditions and restrictions but omitting any covenants or restrictions, if any, including but not limited to those based upon race, color, religion, sex, sexual orientation, familial status, marital status, disability, handicap, national origin, ancestry, or source of Income, as set forth in applicable state or federal laws, except to the extent that said covenant or restriction is permitted by applicable law, as set forth in the document

 

	Recording No:	3555970
	Recording No:	3555972

 

	 	33.	Agreement with the City of Sedona for Waiver of Rights and Remedies under A.R.S. 12-1134:

 

	Executed by:	L'Auberge Orchards LLC
	Recording Date:	May 23, 2011
	Recording No.:	3596028

Said Agreement discloses a right of way for the
Owenby Ditch 

(Affects Tax Parcel 401-12-001C)

 

	 	34.	Covenants, conditions, restrictions and easements but omitting any covenants or restrictions, if any, including but not limited to those based upon race, color, religion, sex, sexual orientation, familial status, marital status, disability, handicap, national origin, ancestry, source of income, gender, gender identity, gender expression, medical condition or genetic information, as set forth in applicable state or federal laws, except to the extent that said covenant or restriction Is permitted by applicable law, as set forth in the document

 

	Recording No:	3596029

(Affects the Owenby Ditch contained within Tax
Parcel No. 401-12-001C)

 

	 	35.	INTENTIONALLY DELETED

 

	 	36.	AMBIGUITY of the description used herein resulting from the indefinite location of the Centerline of Oak Creek.

(Affects Parcel 1)

 

	 	37.	Any rights of the parties in possession of a portion of, or all of, said Land, which rights are not disclosed by the public records.

 

 

Special Warranty Deed (L’Auberge/Schnebly)
– Ex. B

 

 

    	 

    	 

     

 

 

 

 

 

EXHIBIT
8(a)-iii

 

SPECIAL
WARRANTY DEED CONVEYING ORCHARDS INN PROPERTY TO ORCHARDS NEWCO, LLC 

 

When recorded return to:

 

Jonathan T. Brohard, Esq.

Polsinelli Shughart, PC

One East Washington, Suite 1200

Phoenix, AZ 85004

 

SPECIAL WARRANTY DEED

 

(Orchards Inn Property)

 

L’Auberge Orchards,
LLC, an Arizona limited liability company (“Grantor”),
for the consideration of Ten Dollars, and for other good and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, hereby conveys to Orchards Newco, LLC, a Delaware limited liability company (“Grantee”),
its successors and assigns forever, that certain real property situated in the State of Arizona, and more particularly described
as:

 

See Exhibit A attached hereto

 

together with all rights, benefits, privileges,
easements, tenements, hereditaments and appurtenances thereto belonging, and the rents, issues and profits thereof and all water
rights and claims to water rights appurtenant and related thereto and wells thereon, including but not limited to that identified
by the Arizona Department of Water Resources as No. 36-42343.0001; SUBJECT TO current and future taxes and the assessments, liens
and encumbrances set forth on Exhibit B attached hereto.

 

And the GRANTOR binds
itself to warrant the title against all acts of the Grantor and none other, subject to the matters set forth above.

 

This Deed is exempt
from an Affidavit of Value pursuant to ARS § 11-1134B-1.

 

IN WITNESS WHEREOF,
the Grantor has signed this Special Warranty Deed as of the ____ day of ___________, 2013.

 

[SIGNATURE ON FOLLOWING
PAGE]

 

    	 

    	 

     

	 	GRANTOR
	 	 
	 	L’Auberge OrchardS, LLC,
	 	an Arizona limited liability company

 

	 	By:	 
	 	 	 
	 	 	Albert B. Spector, Jr.
	 	 	 
	 	Its:	 

 

ACKNOWLEDGMENT

 

 

	STATE OF ARIZONA	)	 
	 	) ss	 
	COUNTY OF _________________________	)	 
	 	 	 
	On ____________________, before me, ____________________________________, a Notary Public in and for the State of Arizona, personally appeared ______________________, personally known to me (or proved to me on the basis of satisfactory evidence) to be the person whose name is subscribed to the within instrument and acknowledged to me that he/she executed the same in his/her authorized capacity, and that by his/her signature on the instrument the person, or the entity upon behalf of which _______________________________ acted, executed the instrument.
	 	 
	 	 
	Signature	 
	My Commission Expires:	(Space above for official notarial seal)

 

Special Warranty Deed (Orchards
Inn) – Signature

 

    	 

    	 

     

EXHIBIT A

 

LEGAL DESCRIPTION

 

(Orchards Inn Property)

 

THE LAND REFERRED TO HEREIN BELOW IS SITUATED
IN THE COUNTY OF COCONINO,

STATE OF ARIZONA, AND IS DESCRIBED AS FOLLOWS:

 

PARCEL NO. 1:

 

A parcel of land situated in the West half of Section 8, Township
17 North, Range 6 East, of the Gila and Salt River Base and Meridian, Coconino County, Arizona, being more particularly described
as follows:

 

COMMENCING at the West quarter corner of said Section 8, as
marked by a B.L.M brass capped pipe under drain cover in sidewalk and from which the Southwest corner of said Section 8, as marked
by a B.L.M brass capped pipe in cairn, lies South 01 degrees 42 minutes 03 seconds East (basis of bearings for this description),
a distance of 2621.04 feet;

 

THENCE from said West quarter corner, North 12 degrees 54 minutes
17 seconds East (North 12 degrees 27 minutes 33 seconds East, record), a distance of 76.90 feet (76.90 feet, record) to a point
on the Southeasterly right-of-way line of Arizona State Highway 89-A;

 

THENCE Northeasterly along said Southeasterly right of way line
being a non-tangent curve, concave to the Southeast, having a radius of 2150.00 feet (2150.00 feet record)., a chord being of North
23 degrees 04 minutes 02 seconds East and a central angle of 05 degrees 24 minutes 36 seconds (05 degrees 24 minutes 18 seconds,
record), an arc distance of 203.00 feet (203.00 feet record), to a concrete nail with brass tag stamped “LS14184” set
at the position of a previously set cotton picker spindle with tag stamped “LS14184”;

 

THENCE departing said Southeasterly right of way line of Arizona
State Highway 89A, South 65 degrees 25 minutes 03 seconds East, a distance of 11.73 feet to the POINT OF BEGINNING, which lies
on the Southeasterly line of that certain tract of land acquired by the City of Sedona in December 2005 and described in Document
NO. 2005-3361777 of the Coconino County Recorder’s Office, Coconino County, Arizona;

 

THENCE along said Southeasterly line, North 24 degrees 46 minutes
32 seconds East, a distance of 23.47 feet;

 

THENCE continuing along said Southeasterly line, North 21 degrees
21 minutes 48 seconds East, a distance of 3.63 feet;

 

THENCE continuing along said Southeasterly line, North 20 degrees
52 minutes 26 seconds West, a distance of 8.33 feet;

 

THENCE continuing along said Southeasterly line, North 69 degrees
07 minutes 34 seconds East, a distance of 1.00 feet;

 

THENCE continuing along said Southeasterly line, North 19 degrees
27 minutes 50 seconds West, a distance of 6.81 feet;

 

Special Warranty Deed (Orchards Inn) –
Ex. A

 

    	 

    	 

      

THENCE continuing along said Southeasterly line, North 26 degrees
18 minutes 08 seconds East, a distance of 19.54 feet;

 

THENCE continuing along said Southeasterly line, South 62 degrees
51 minutes 12 seconds East, a distance of 4.07 feet;

 

THENCE continuing along said Southeasterly line, North 23 degrees
53 minutes 25 seconds East, a distance of 6.93 feet;

 

THENCE continuing along said Southeasterly line of that tract
of land acquired by the City of Sedona in December 2005, North 62 degrees 35 minutes 35 seconds West, a distance of 0.55 feet to
the North line of the Orchards/L’Auberge parcel;

 

THENCE along said North line of the Orchards/L’Auberge
parcel, South 89 degrees 51 minutes 31 seconds East (North 89 degrees 42 minutes 07 seconds East, record), a distance of 212.10
feet to a 1⁄2” rebar with cap stamped “LS14184” (previously set);

 

THENCE South 40 degrees 28 minutes 17 seconds East, (South 41
degrees 45 minutes 00 seconds East, record), a distance of 62.25 feet;

 

THENCE South 37 degrees 42 minutes 35 seconds West, a distance
of 174.72 feet;

 

THENCE South 49 degrees 44 minutes 02 seconds West, a distance
of 94.50 feet to a 1⁄2” rebar with no identification (previously found);

 

THENCE North 31 degrees 49 minutes 11 seconds West (North 32
degrees 21 minutes 20 seconds West, record), a distance of 114.47 feet (113.94 feet record) to a 1⁄2” rebar with cap
stamped “LS 14184” (previously set);

 

THENCE North 22 degrees 35 minutes 10 seconds East (North 24
degrees 24 minutes 07 seconds East, record), a distance of 66.04 feet (65.00 feet, record) to a concrete nail with brass tag stamped
“LS14184”, previously set at the position of a previously set chiseled “+” in concrete;

 

THENCE North 65 degrees 25 minutes 03 seconds West, (North 65
degrees 34 minutes 02 seconds West, record), a distance of 65.96 feet to the POINT OF BEGINNING.

 

PARCEL NO. 2:

 

INTENTIONALLY DELETED.

 

PARCEL NO. 3:

 

An easement for overhead canopies and other purposes by or pursuant
to that certain Special Warranty Deed (In Lieu of Condemnation) recorded December 27, 2005 in Document No. 3361777, Official Records
of Coconino County, Arizona.

 

    	2

    	 

     

EXHIBIT B

 

PERMITTED ENCUMBRANCES

 

Property taxes, which area lien not yet due and
payable, including any assessments collected with taxes to be levied for the year 2013.

 

	 	2.	Reservations contained in the Patent

 

	 	From:	The United States of America
	 	Recording Date:	June 28, 1916
	 	Recording No:	Book 43 of Deeds, page 626

 

Which among other things recites as follows:

 

Subject to any vested and
accrued water rights for mining, agricultural, manufacturing, or other purposes and rights to ditches and reservoirs used in connection
with such water rights, as may be recognized and acknowledged by the local customs, laws and decisions of the courts, and the reservation
from the lands hereby granted, a right ofway thereon for ditches or canals constructed by the authority of the United States.

 

	 	3.	Water rights, claims or title to water, whether or not disclosed by the public records.

 

	 	4.	INTENTIONALLY DELETED

 

	 	5.	INTENTIONALLY DELETED

 

	 	6.	Easement(s) for the purpose(s) shown below and rights incidental thereto as set forth in a document

 

	 	Purpose:	parking and roof water drainage
	 	Recording No:	Docket 309, page 167

 

	 	7.	Easement(s) for the purpose(s) shown below and rights incidental thereto as set forth in a document:

 

	 	Purpose:	water lines and appurtenant facilities
	 	Recording No:	Docket 1776, page 715

 

	 	8.	INTENTIONALLY DELETED

 

	 	9.	COVENANTS AND CONDITIONS in Special Warranty Deed (in Lieu of Condemnation) recorded December 27, 2005, in Recording No. 3361777.

 

	 	10.	Matters shown on record of survey:

 

	 	Recording No.:	3490268

 

	 	11.	Waiver of Rights and Remedies under A.R.S. 12-1134, recorded in Recording No. 3508822.

 

	 	12.	Waiver of Rights and Remedies under A.R.S. 12-1134, recorded in Recording No. 3508823.

 

	 	13.	Waiver of Rights and Remedies under A.R.S. 12-1134, recorded in Recording No. 3508824.

 

    	3

    	 

     

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	 	14.	Easement(s) for the purpose(s) shown below and rights incidental thereto as set forth in a document:

 

	 	Purpose:	designated parking spaces
	 	Recording No:	3519364; and
	 	Re-recorded	3521268

 

	 	15.	Easement(s) for the purpose(s) shown below and rights incidental thereto as set forth in a document:

 

	 	Purpose:	utility
	 	Recording No:	3609645

 

	 	16.	Any rights of the parties In possession of a portion of, or all of, said Land, which rights are not disclosed by the public records.

 

	 	17.	INTENTIONALLY DELETED

 

	 	18.	A deed of trust to secure an indebtedness in the amount shown below,

 

	 	Amount:	$43,435,000.00
	 	Dated:	May 7, 2008
	 	Trustor/Grantor:	L'Auberge Orchard, LLC., an Arizona limited liability company
	 	Trustee:	Trantmation Title Insurance Company
	 	Beneficiary:	IMH Secured Loan Fund, LLC
	 	Recording Date:	May 9, 2008
	 	Recording No:	3485966

 

And Amended and Restated Deed of Trust as shown
below,

 

	 	Trustor/Grantor: 	L'Auberge Orchard, LLC., an Arizona limited liability company
	 	Trustee: 	 
	 	Beneficiary: 	NWRA VENTURES 1, LLC, a Delaware limited liability company 2013
	 	Recording Date: 	 
	 	Recording No:	            

 

An agreement recorded September 25, 2009 at Recording
No. 3539611 which states that this instrument was subordinated to the document or interest described in the instrument

 

	 	Recording Date:	September 25, 2009
	 	Recording No:	3539609

 

An assignment of the beneficial interest under
said deed of trust which names:

 

	 	Assignee:	IMH Special Asset NT 232, LLC, an Arizona limited liability company
	 	Recording Date:	November 13, 2009
	 	Recording No:	3544893

 

An agreement recorded September 30, 2010 at Recording
No. 3575445 which states that this instrument was subordinated to the document or interest described in the instrument

 

	 	Recording Date:	September 25, 2009
	 	Recording No:	3539609

 

    	4

    	 

     

3662330 Pages:
8 of 9 05/15/2013 03:49:28 PM

 

An agreement recorded March 9, 2011 at Recording
No. 3589822 which states that this instrument was subordinated to the document or interest described in the instrument

 

	 	Recording Date:	September 25, 2009
	 	Recording No:	3539609

 

A collateral assignment of the beneficial interest,
which names

 

	 	Assignee:	NWRA Ventures 1, LLC, a Delaware limited liability company
	 	Recording Date:	Juno 15, 2011
	 	Recording No:	3597846

 

An agreement recorded March 29, 2013 at Recording
No. 3658075 which states that this instrument was subordinated to the document or interest described in the instrument

 

	 	Recording Date:	September 25, 2009
	 	Recording No:	3539609

 

An absolute assignment of the beneficial interest
under said deed of trust which names:

 

	 	Assignee: 	NWRA Ventures I, LLC, a Delaware limited liability company
	 	Recording Date: 	          , 2013
	 	Recording No:	          

 

 

	 	19.	A financing statement as follows:

 

	 	Debtor:	L'Auberge Orchard, LLC., an Arizona limited 
	 	Secured 	liability company IMH Secured Loan Fund, LLC., a 
	 	Party 	Delaware limited liability company May 16, 2008 
	 	Recording Date: 	3486766; and
	 	Recording No:	 

 

A change to the above financing statement was filed

 

	 	Nature of Change:	Assignment
	 	Recording Date:	March 24, 2010
	 	Recording No:	3556918

 

An agreement recorded September 25, 2009 at Recording
No. 3539611 which states that this instrument was subordinated to the document or interest described in the instrument

 

	 	Recording Date:	September 25, 2009
	 	Recording No:	3539609

 

	 	20.	A deed of trust to secure an indebtedness in the amount shown below,

 

	 	Amount:	$14,000,000.00
	 	Dated: 	September 18, 2009
	 	Trustor/Grantor: 	L'Auberge Orchard, LLC„ an Arizona limited liability company
	 	Trustee: 	Lawyers Title Insurance Corporation, a Nebraska corporation
	 	Beneficiary: 	First Credit Bank
	 	Recording Date:	September 25, 2009
	 	Recording No:	3539609

 

    	5

    	 

     

3662330 Pages: 9 of 9 05/15/2013 03:49:28
PM

 

An agreement to modit), the terms and
provisions of said deed of trust as therein provided

 

	 	Executed by:	L'Auberge Orchard, LLC., an Arizona limited liability company and First Credit Bank
	 	Recording Date:	September 30, 2010
	 	Recording No:	3575444

 

An agreement to modify the terms and provisions
of said deed of trust as therein provided

 

	 	Executed by:	L'Auberge Orchard, LLC., an Arizona limited liability company and First Credit Bank
	 	Recording Date:	March 9, 2011
	 	Recording No:	3589821

 

An agreement to modify the terms and provisions
of said deed of trust as therein provided

 

	 	Executed by:	L'Auberge Orchards, LLC, an Arizona limited liability company and First Credit Bank
	 	Recording Date:	March 29, 2013
	 	Recording No:	3658074

 

	 	21.	A deed of trust to secure an Indebtedness in the amount shown below,

 

	 	Amount:	$17,000,000,00
	 	Dated:	        , 2013
	 	Recorded:	        , 2013
	 	Recording No.:	 
	 	Truster:	ORCHARDS NEWCO, LLC, a Delaware limited liability company
	 	Trustee:	Lawyers Title of Arizona, Inc
	 	Beneficiary:	NWRA VENTURES I, LLC, a Delaware limited liability company, its successors
	 	 	and/or assigns, as their respective interests may appear

 

 

Special Warranty Deed (Orchards
Inn) – Ex. B

 

 

    	 

    	 

     

 

 

 

Exhibit
8(b)-i

 

BILL
OF SALE AND GENERAL ASSIGNMENT AND ASSUMPTION

 

(LaMerra
Property)

 

This BILL OF SALE AND
GENERAL ASSIGNMENT AND ASSUMPTION (this “Bill of Sale”) is dated as of _____________, 2013, by and between HL
LLC, an Arizona limited liability company (“Assignor”) and HL
Newco, LLC, a Delaware limited liability company (“Assignee”).

 

This Bill of Sale is
being executed and delivered in conjunction with a Special Warranty Deed of even date herewith from Assignor to Assignee.

 

For good and valuable
consideration, the adequacy and receipt of which are hereby acknowledged, Assignor and Assignee do hereby agree as follows:

 

	 	1.	Sale and Assignment of Personal Property.

 

Assignor hereby sells,
transfers, assigns, delivers, sets over and conveys to Assignee all of Assignor’s right, title and interest in and to all
personal property owned or leased by Assignor now existing or at any time hereafter placed in or attached to with respect to, or
used in connection with the ownership, operation, leasing, maintenance or repair of that certain real property in Yavapai County,
Arizona, and legally described on Exhibit A
attached hereto (the “Real Property”).

 

	 	2.	General Assignment and Assumption.

 

Assignor hereby sells,
transfers, assigns, delivers, sets over and conveys to Assignee all right, title and interest of Assignor in and to the following:

 

a.           to
the extent they may be transferred under applicable law, all licenses, permits and authorizations presently issued in connection
with the operation of all or any part of the Real Property as it is presently being operated, including but not limited to all
such permits and licenses;

 

b.           all
warranties and guarantees (if any) issued to Assignor by any manufacturer or contractor in connection with the construction or
installation of equipment included as part of the Real Property;

 

c.           all
claims against contractors and suppliers with respect to work done on or with respect to the Real Property or materials incorporated
into the Real Property;

 

d.           all
contracts in effect as of the date hereof with respect to the Real Property;

 

    	 

    	 

     

e.           all
brands, trade names, trademarks, web sites, telephone numbers and listings, deposits and other general intangibles of or relating
to the Real Property, including, without limitation, “LaMerra,” and “LaMerra Sedona”;

 

f.            all
permits, licenses, and approvals applicable to the Real Property or any business conducted thereon or therefrom;

 

g.           all
engineering documents, architectural documents and other plats, plans, specifications, drawings and surveys applicable to the Real
Property;

 

h.           all
refunds of insurance premiums associated with or related to the Real Property;

 

i.            all
returns or refunds of deposits, charges, payments or taxes associated with the Real Property or business conducted thereon by Assignor,
its subsidiaries, affiliates or agents;

 

j.            all
water rights associated with or related to the Real Property;

 

k.          all
accounts, cash and cash equivalents; and

 

l.            all
other rights, privileges and appurtenances associated with the Real Property.

 

All of the foregoing items in this Section
2 are collectively referred to as the “Property Interests”).

 

	 	3.	Acceptance and Assumption.

 

Assignee hereby accepts
the assignment of the Property Interests and assumes the liability and obligations specifically described on Exhibit B attached
hereto (the “Scheduled Assumed Liabilities”).

 

	 	4.	Successors and Assigns.

 

This Bill of Sale and
General Assignment and Assumption shall be binding upon and inure to the benefit of the parties hereto and their respective successors
and assigns.

 

	 	5.	Governing Law.

 

This Bill of Sale and
General Assignment and Assumption shall be governed by and construed in accordance with the laws of the State of Arizona.

 

IN WITNESS WHEREOF,
this Bill of Sale and General Assignment and Assumption has been executed this _____ day of ______, 2013.

 

[SIGNATURES ON FOLLOWING
PAGES]

 

    	2

    	 

     

	ASSIGNOR:	 
	 	 	 
	HL LLC, an Arizona limited liability company	 
	 	 
	By:	 	 
	Name:	Albert B. Spector, Jr.	 
	Its:	 	 

 

ACKNOWLEDGMENT

  

	STATE OF ARIZONA	)	 
	 	) ss	 
	COUNTY OF ________________________	)	 
	 	 	 

 

On ____________________, before me, ____________________________________,
a Notary Public in and for the State of Arizona, personally appeared ______________________, personally known to me (or proved
to me on the basis of satisfactory evidence) to be the person whose name is subscribed to the within instrument and acknowledged
to me that he/she executed the same in his/her authorized capacity, and that by his/her signature on the instrument the person,
or the entity upon behalf of which _______________________________ acted, executed the instrument.

 

	 	 
	
         

        Signature
	 
	My Commission Expires:	(Space above for official notarial seal)

  

Bill of
Sale (LaMerra) – Signature 1

 

 

    	 

    	 

     

	ASSIGNEE:	 
	 	 
	HL NEWCO, LLC, a Delaware limited liability company	 
	 	 	 
	By:	IMH Financial Corporation, a Delaware Corporation, Sole Member	 
	 	 	 
	 	By:	 	 
	 	Name:	 	 
	 	Its:	 	 

 

ACKNOWLEDGMENT

 

	STATE OF ARIZONA	)	 
	 	) ss	 
	COUNTY OF MARICOPA	)	 
	 	 	 

 

On ____________________, before me, ____________________________________,
a Notary Public in and for the State of Arizona, personally appeared ______________________, personally known to me (or proved
to me on the basis of satisfactory evidence) to be the person whose name is subscribed to the within instrument and acknowledged
to me that he/she executed the same in his/her authorized capacity, and that by his/her signature on the instrument the person,
or the entity upon behalf of which _______________________________ acted, executed the instrument.

 

	 	 
	Signature	 
	My Commission Expires:	(Space above for official notarial seal)

  

Bill of Sale (LaMerra) – Signature
2

 

 

 

    	 

    	 

     

EXHIBIT A

 

LEGAL DESCRIPTION

(LaMerra)

 

THE LAND REFERRED TO HEREIN BELOW IS SITUATED
IN THE COUNTY OF YAVAPAI, STATE OF ARIZONA, AND IS DESCRIBED AS FOLLOWS:

 

PARCEL NO. 1:

 

THE NORTH HALF OF THE NORTHEAST QUARTER OF SECTION 34, TOWNSHIP
17 NORTH, RANGE 5 EAST OF THE GILA AND SALT RIVER BASE AND MERIDIAN, YAVAPAI COUNTY, ARIZONA;

 

EXCEPT BEGINNING AT A POINT IN THE SOUTHERLY LINE OF SAID LAND,
WHICH POINT IS DISTANT 650 FEET EASTERLY ALONG SAID SOUTHERLY LINE FROM THE SOUTHWEST CORNER OF SAID LAND;

 

THENCE WESTERLY ALONG SAID SOUTHERLY LINE TO THE SOUTHWEST CORNER
OF SAID LAND;

 

THENCE NORTHERLY ALONG THE WESTERLY LINE OF SAID LAND, A DISTANCE
OF 670 FEET;

 

THENCE SOUTHEASTERLY IN A DIRECT LINE TO THE POINT OF BEGINNING.

 

PARCEL NO. 2:

 

THE SOUTHEAST QUARTER OF THE SOUTHEAST QUARTER (BEING LOT 13)
OF SECTION 27, TOWNSHIP 17 NORTH, RANGE 5 EAST OF THE GILA AND SALT RIVER BASE AND MERIDIAN, YAVAPAI COUNTY, ARIZONA.

 

PARCEL NO.3:

 

ALL THAT PORTION OF THE SOUTHEAST QUARTER OF SECTION 27, TOWNSHIP
17 NORTH, RANGE 5 EAST OF THE GILA AND SALT RIVER BASE AND MERIDIAN, YAVAPAI COUNTY, ARIZONA, DESCRIBED AS FOLLOWS:

 

BEGINNING AT THE SOUTH QUARTER CORNER OF SAID SECTION 27, MARKED
BY A G.L.O. BRASS CAP;

 

THENCE NORTH 2 DEGREES 37 MINUTES 30 SECONDS WEST, 115.90 FEET
TO AN EXISTING FENCE;

 

THENCE NORTH 89 DEGREES 24 MINUTES 50 SECONDS EAST, ALONG SAID
FENCE, 204.31 FEET;

 

THENCE SOUTH 2 DEGREES 37 MINUTES 30 SECONDS EAST TO A POINT
ON THE SOUTH LINE OF SAID SECTION 27;

 

THENCE SOUTH 89 DEGREES 00 MINUTES WEST, ALONG SAID SECTION
LINE TO THE

 

Bill of Sale (LaMerra) – Ex. A

 

 

 

    	4

    	 

     

ACTUAL POINT OF BEGINNING.

 

PARCEL NO.4:

 

THAT PORTION OF THE SOUTHEAST QUARTER OF THE SOUTHWEST QUARTER
OF SECTION 27, TOWNSHIP 17 NORTH, RANGE 5 EAST OF THE GILA AND SALT RIVER BASE AND MERIDIAN, YAVAPAI COUNTY, ARIZONA, LYING EASTERLY
OF A LINE LOCATED 100 FEET WEST OF AND PARALLEL TO SAID EAST LINE OF THE SOUTHWEST QUARTER, AND SOUTH OF A LINE HAVING A COURSE
OF NORTH 85 DEGREES 13 MINUTES EAST THROUGH A POINT THAT LIES NORTH 2 DEGREES 37 MINUTES 30 SECONDS WEST, 118.5 FEET FROM THE SOUTH
QUARTER CORNER OF SECTION 27 MARKED BY A G.L.O. BRASS CAP.

 

PARCEL NO. 5:

 

ALL THAT PORTION OF THE SOUTHWEST QUARTER OF THE SOUTHEAST QUARTER
OF SECTION 27, TOWNSHIP 17 NORTH, RANGE 5 EAST OF THE GILA AND SALT RIVER BASE AND MERIDIAN, YAVAPAI COUNTY, ARIZONA, LYING SOUTHERLY
OF AND CONTIGUOUS TO THE FOLLOWING DESCRIBED BOUNDARY LINE:

 

FROM THE NORTHEAST CORNER OF THE QUIT CLAIM PARCEL OF LAND DESCRIBED
AS BOOK 938 OF OFFICIAL RECORDS, PAGE 57, YAVAPAI COUNTY RECORDERS OFFICE, THE TRUE POINT OF BEGINNING, SAID CORNER LYING ON THE
EAST-WEST BARBED WIRE FENCE AS SHOWN ON THE RECORD OF SURVEY RECORDED AS BOOK 17 OF LAND SURVEYS AT PAGE 17, AND ALSO ON THE SOUTHERLY
LINE OF THE MONTERASTELLI (SIC) BOUNDARY AS SHOWN ON RESULTS OF SURVEY BY PATRICK NEVILLE, RECORDED AS BOOK 16, AT PAGE 100, DATED
JULY 14, 1992;

 

THENCE SOUTH 89 DEGREES 53 MINUTES 02 SECONDS EAST, ALONG THE
FENCE AND ITS EASTERLY EXTENSION AND ALONG THE SOUTHERLY LINE OF THE MONTERASTELLI BOUNDARY, 791.99 FEET;

 

THENCE SOUTH 41 DEGREES 19 MINUTES 24 SECONDS EAST, 39.09 FEET
TO THE SOUTH LINE OF SECTION 27, PER THE ARIZONA ENGINEERING COMPANY RECORD OF SURVEY RECORDED AS BOOK 10 OF RECORDS OF SURVEY,
AT PAGE 99;

 

THENCE SOUTH 88 DEGREES 14 MINUTES 32 SECONDS EAST, ALONG THE
SOUTH LINE OF SECTION 27, 75.15 FEET;

 

THENCE SOUTH 73 DEGREES 27 MINUTES 42 SECONDS EAST, 55.92 FEET;

 

THENCE NORTH 22 DEGREES 46 MINUTES 34 SECONDS EAST, 11.20 FEET;

 

THENCE NORTH 87 DEGREES 02 MINUTES 45 SECONDS EAST, 21.97 FEET;

 

THENCE SOUTH 81 DEGREES 16 MINUTES 09 SECONDS EAST, 29.96 FEET;

 

THENCE SOUTH 65 DEGREES 43 MINUTES 54 SECONDS EAST, 22.05 FEET
TO THE EAST LINE OF THE NORTHWEST QUARTER OF THE NORTHEAST QUARTER OF SECTION 34, WHICH IS THE POINT OF TERMINUS OF THE BOUNDARY
LINE;

 

THE BASIS OF BEARINGS FOR THIS DESCRIPTION IS SOUTH 88 DEGREES
14 MINUTES 32 SECONDS EAST, FROM THE SOUTH QUARTER CORNER OF SECTION 27 TO THE SOUTHEAST CORNER OF SECTION 27, ACCORDING TO THE
ARIZONA ENGINEERING

 

Bill of Sale (LaMerra) – Ex. A

 

 

 

    	2

    	 

     

COMPANY RESULTS OF SURVEY RECORDED AS BOOK 10 OF RECORDS OF
SURVEYS, AT PAGE 99, YAVAPAI COUNTY RECORDERS OFFICE.

 

PARCEL NO. 6:

 

EASEMENT FOR ROADWAY FOR INGRESS AND EGRESS FOR THE PURPOSE
OF TRAVEL AND MAINTENANCE AS CREATED IN BOOK 3833, OF OFFICIAL RECORDS, PAGE 934,

BEING 50 FEET WIDE, LYING 30 FEET ON THE WESTERLY AND SOUTHERLY
SIDES AND 20 FEET ON THE EASTERLY AND NORTHERLY SIDES OF THE FOLLOWING DESCRIBED PROPERTY:

 

THE CENTERLINE OF AN EXISTING DIRT ROAD IN SECTION 27, TOWNSHIP
17 NORTH, RANGE 5 EAST OF THE GILA AND SALT RIVER BASE AND MERIDIAN, YAVAPAI COUNTY, ARIZONA, MORE PARTICULARLY DESCRIBED BY METES
AND BOUNDS AS FOLLOWS:

 

FROM THE SOUTHWEST CORNER OF SECTION 27;

 

THENCE NORTH 86 DEGREES 13 MINUTES 45 SECONDS EAST, A DISTANCE
OF 2448.25 FEET TO A CONCRETE MONUMENT MARKED 1/4 ON THE WEST FACE, WITH AN ALUMINUM CAP MARKED LS 13010, ACCEPTED BY JOHN A. LUCKOW,
ARIZONA REGISTERED LAND SURVEYOR, AS THE TRUE LOCATION OF THE SOUTH QUARTER CORNER OF RECORD OF SURVEY DATED FEBRUARY 24, 1990,
RECORDED IN BOOK 10 OF LAND SURVEYORS, PAGE 99, YAVAPAI COUNTY RECORDERS OFFICE, WHICH IS IDENTICAL TO THE SOUTHEAST CORNER OF
THE PROPERTY AS CONVEYED TO HARRIET KOHLER (ALSO KNOWN AS HARRIET K. SEAMAN) BY INSTRUMENTS RECORDED IN THE OFFICE OF THE RECORDER
OF YAVAPAI COUNTY, ARIZONA, IN BOOK 179 OF DEEDS, PAGE 586 AND IN BOOK 357 OF OFFICIAL RECORDS, PAGE 233 AND WHICH IS ALSO IDENTICAL
TO THE NORTHEAST CORNER OF PARCEL 4 ABOVE, ACCEPTED AND UTILIZED AS THE QUARTER CORNER BETWEEN SECTIONS 27 AND 34, PRIOR TO THE
1956 GLO DEPENDENT RESURVEY OF SECTION 27 BY WHICH THE QUARTER CORNER BETWEEN SECTIONS 27 AND 35 HAS BEEN MARKED BY A STANDARD
GLO BRASS CAPPED PIPE, WHICH IS THE SAME GLO BRASS CAP ESTABLISHING THE SOUTHEAST CORNER OF THE PROPERTY DESCRIBED IN PARCEL 4
ABOVE;

 

THENCE SOUTH 85 DEGREES 13 MINUTES 00 SECONDS WEST, 15.05 FEET,
TO THE TRUE

 

POINT OF BEGINNING OF THIS DESCRIPTION:

 

THENCE NORTH 07 DEGREES 16 MINUTES 03 SECONDS
EAST, 55.48 FEET; THENCE NORTH 00 DEGREES 25 MINUTES 35 SECONDS EAST, 201.21 FEET TO THE EAST LINE OF THE KOHLER PARCEL AS DESCRIBED
IN WARRANTY DEED RECORDED IN BOOK 179 OF DEEDS, PAGE 586, YAVAPAI COUNTY RECORDERS OFFICE, STATE OF ARIZONA; THENCE NORTH 00 DEGREES
25 MINUTES 35 SECONDS EAST, 283.79 FEET TO THE P.C. OF A CURVE, HAVING A RADIUS OF 215.00 FEET AND A CENTRAL ANGLE OF 18 DEGREES
55 MINUTES 40 SECONDS;

 

THENCE NORTHERLY ALONG A CURVE TO THE LEFT, AN ARC DISTANCE
OF 71.03 FEET, TO THE EAST LINE OF THE KOHLER PARCEL AND THE BEGINNING OF A CURVE, HAVING A RADIUS OF 215.00 FEET AND A CENTRAL
ANGLE OF 18 DEGREES 53 MINUTES 55 SECONDS;

 

THENCE NORTHERLY ALONG A CURVE TO THE LEFT, AN ARC DISTANCE
OF 70.92 FEET TO THE PT.;

 

Bill of Sale (LaMerra) – Ex. A

 

 

 

    	3

    	 

     

 

THENCE NORTH 37 DEGREES 24 MINUTES 00 SECONDS WEST, 164.52 FEET
TO THE P.C. OF A CURVE, HAVING A RADIUS OF 130.00 FEET AND A CENTRAL ANGLE OF 07 DEGREES 11 MINUTES 55 SECONDS;

 

THENCE NORTHWESTERLY ALONG A CURVE TO THE LEFT, AN ARC DISTANCE
OF 16.33 FEET TO THE NORTH LINE OF THE KOHLER PARCEL AND THE BEGINNING OF A CURVE, HAVING A RADIUS OF 130.00 FEET AND A CENTRAL
ANGLE OF 32 DEGREES 59 MINUTES 56 SECONDS;

 

THENCE NORTHWESTERLY ALONG A CURVE TO THE LEFT, AN ARC DISTANCE
OF 74.87 FEET TO THE P.T.;

 

THENCE NORTH 77 DEGREES 35 MINUTES 51 SECONDS WEST, 92.01 FEET
TO THE P.C. OF A CURVE, HAVING A RADIUS OF 250.00 FEET AND A CENTRAL ANGLE OF 10 DEGREES 44 MINUTES 58 SECONDS;

 

THENCE WESTERLY ALONG A CURVE TO THE LEFT, AN ARC DISTANCE OF
46.90 FEET TO THE NORTH LINE OF THE KOHLER PARCEL AND THE BEGINNING OF A CURVE, HAV1NG A RADIUS OF 250.00 FEET AND A CENTRAL ANGLE
OF 10 DEGREES 51 MINUTES 24 SECONDS;

 

THENCE WESTERLY ALONG A CURVE TO THE LEFT, AN ARC DISTANCE OF
47.37 FEET TO THE P.T.;

 

THENCE SOUTH 80 DEGREES 47 MINUTES 47 SECONDS WEST, 160.95 FEET;

 

THENCE SOUTH 84 DEGREES 31 MINUTES 30 SECONDS WEST, 60.56 FEET
TO THE TERMINUS OF THIS DESCRIPTION AT THE WEST LINE OF THE KOHLER PARCEL, THE NORTHWEST CORNER OF WHICH BEARS NORTH 01 DEGREES
01 MINUTES 44 SECONDS WEST, A DISTANCE OF 116.37 FEET.

 

PARCEL NO. 7:

 

EASEMENT FOR IRRIGATION DITCH PURPOSES AS CREATED IN BOOK 2250,
OF OFFICIAL RECORDS, PAGE 382, OVER AND ACROSS THE REAL PROPERTY DESCRIBED BELOW. THE CENTERLINE OF THE EASEMENT IS THE CENTERLINE
OF THE EXISTING DITCH AND THE EASEMENT IS OF THE WIDTH REASONABLY NECESSARY FOR THE MAINTENANCE AND OPERATION OF THE DITCH.

 

REAL PROPERTY WHICH EASEMENT CROSSES IS DESCRIBED AS FOLLOWS:

 

THE FOLLOWING DESCRIBED PORTION OF THE EAST HALF OF THE SOUTHEAST
QUARTER OF THE SOUTHWEST QUARTER OF SECTION 27, TOWNSHIP 17 NORTH OF RANGE 5 EAST OF THE GILA AND SALT RIVER BASE AND MERIDIAN,
YAVAPAI COUNTY, ARIZONA, TO WIT:

 

BEGINNING AT THE QUARTER CORNER BETWEEN SECTIONS 27 AND 34,
ABOVE TOWNSHIP AND RANGE, SAID CORNER BEING MARKED BY A STONE MONUMENT, WHICH WAS ACCEPTED BY JIM LAMPORT, SURVEYOR IN 1928, AND
BY OLD SETTLERS FOR MANY YEARS;

 

THENCE FROM SAID POINT NORTH ON THE QUARTER SECTION LINE THROUGH
THE CENTER OF SAID SECTION 27, (THIS LINE BEING ASSUMED NORTH FOR THE PURPOSE OF THIS DESCRIPTION) 774.0 FEET TO A STONE MONUMENT;

 

Bill of Sale (LaMerra) – Ex. A

 

 

 

    	4

    	 

     

THENCE NORTH 73 DEGREES 34 MINUTES WEST, 659.6 FEET TO A STONE
MONUMENT;

 

THENCE SOUTH 03 DEGREES 45 MINUTES WEST, 1021.3 FEET TO A STONE
MONUMENT ON THE SOUTH LINE OF Said) SECTION 27;

 

THENCE NORTH 85 DEGREES 13 MINUTES EAST, 701.9 FEET ALONG SAID
SECTION LINE TO THE POINT OF BEGINNING.

 

PARCEL NO. 8:

 

A NON-EXCLUSIVE EASEMENT FOR ROADWAY AND UTILITY PURPOSES OVER,
ACROSS AND UNDER THE FOLLOWING DESCRIBED PARCEL:

 

A PORTION OF THE SOUTHWEST QUARTER OF THE SOUTHEAST QUARTER
OF SECTION 27, TOWNSHIP 17 NORTH, RANGE 5 EAST OF THE GILA AND SALT RIVER BASE AND MERIDIAN, YAVAPAI COUNTY, ARIZONA;

 

BEGINNING AT A POINT ON THE WEST LINE OF THE SOUTHWEST QUARTER
OF THE SOUTHEAST QUARTER OF SECTION 27 BEARING NORTH 01 DEGREES 29 MINUTES 54 SECONDS WEST, A DISTANCE OF 600 FEET FROM THE SOUTH
QUARTER CORNER OF SECTION 27 MARKED BY A G.L.O. BRASS CAP;

 

THENCE NORTH 01 DEGREES 29 MINUTES 54 SECONDS WEST ALONG THE
WEST LINE OF THE SOUTHWEST QUARTER OF THE SOUTHEAST QUARTER OF SECTION 27, A DISTANCE OF 180.05 FEET; THENCE SOUTH 35 DEGREES 58
MINUTES 39 SECONDS EAST, A DISTANCE OF 44.71 FEET;

 

THENCE SOUTH 0 DEGREES 48 MINUTES 45 SECONDS WEST, A DISTANCE
OF 143.31 FEET;

 

THENCE SOUTH 88 DEGREES 30 MINUTES 06 SECONDS WEST, A DISTANCE
OF 19.54 FEET TO THE PLACE OF BEGINNING.

 

PARCEL NO. 9:

 

A NON-EXCLUSIVE EASEMENT FOR ROADWAY AND UTILITY PURPOSES AS
CREATED IN BOOK 938 OF OFFICIAL RECORDS, PAGE 65, OVER, ACROSS AND UNDER THE FOLLOWING DESCRIBED PARCELS:

 

PARCEL A:

 

THE FOLLOWING DESCRIBED PORTION OF THE SOUTHWEST QUARTER OF
THE SOUTHEAST QUARTER OF SECTION 27, TOWNSHIP 17 NORTH, RANGE 5 EAST OF THE GILA AND SALT RIVER BASE AND MERIDIAN, YAVAPAI COUNTY,
ARIZONA;

 

BEGINNING AT A POINT ON THE WEST LINE OF THE SOUTHWEST QUARTER
OF THE SOUTHEAST QUARTER OF SECTION 27 BEARING NORTH 01 DEGREES 29 MINUTES 54 SECONDS WEST, A DISTANCE OF 115.84 FEET FROM THE
SOUTH QUARTER CORNER OF SECTION 27, MARKED BY A G.L.O. BRASS CAP;

 

THENCE NORTH 01 DEGREES 29 MINUTES 54 SECONDS WEST ALONG THE
WEST LINE OF THE SOUTHWEST QUARTER OF THE SOUTHEAST QUARTER OF SECTION 27, A DISTANCE OF 484.16 FEET;

 

Bill of Sale (LaMerra) – Ex. A

 

 

 

    	5

    	 

     

 

THENCE NORTH 88 DEGREES 30 MINUTES 06 SECONDS EAST, A DISTANCE
OF 19.54 FEET;

 

THENCE SOUTH 0 DEGREES 48 MINUTES 45 SECONDS WEST, A DISTANCE
OF 484.55 FEET TO THE PLACE OF BEGINNING.

 

PARCEL B:

 

A PORTION OF THE EAST HALF OF THE SOUTHEAST QUARTER OF THE SOUTHWEST
QUARTER OF SECTION 27, TOWNSHIP 17 NORTH, RANGE 5 EAST OF THE GILA AND SALT RIVER BASE AND MERIDIAN, YAVAPAI COUNTY, ARIZONA;

 

BEGINNING AT A POINT ON THE EAST LINE OF THE SOUTHEAST QUARTER
OF THE SOUTHWEST QUARTER OF SECTION 27 BEARING NORTH 01 DEGREES 29 MINUTES 54 SECONDS WEST, A DISTANCE OF 889.73 FEET FROM THE
SOUTH QUARTER CORNER OF

 

SECTION 27 MARKED BY A G.L.O. BRASS CAP;
THENCE NORTH 73 DEGREES 03 MINUTES 08 SECONDS WEST, A DISTANCE OF 103.00 FEET TO THE TRUE POINT OF BEGINNING;

 

THENCE NORTH 73 DEGREES 03 MINUTES 08 SECONDS WEST, A DISTANCE
OF 303.41 FEET. (THE DIRECTION AND LOCATIONS OF THE ABOVE LINE DETERMINED BY STONE MONUMENTS AS CALLED FOR IN THAT CERTAIN DEED
OF CORRECTION OF RECORD IN THE OFFICE OF THE COUNTY RECORDER, YAVAPAI COUNTY, ARIZONA, IN BOOK 172 OF DEEDS, PAGE 495 THEREOF);

 

THENCE NORTH 82 DEGREES 32 MINUTES 53 SECONDS EAST, A DISTANCE
OF 67.32 FEET;

 

THENCE SOUTH 75 DEGREES 10 MINUTES 23 SECONDS EAST, A DISTANCE
OF 195.82 FEET;

 

THENCE SOUTH 35 DEGREES 58 MINUTES 39 SECONDS EAST, A DISTANCE
OF 58.16 FEET TO THE PLACE OF BEGINNING.

 

PARCEL NO. 10:

 

A NON-EXCLUSIVE EASEMENT FOR ROADWAY AND PUBLIC UTILITY PURPOSES
AS CREATED IN BOOK 1920 OF OFFICIAL RECORDS, PAGE 314, EMBRACING ALL OF THE FOLLOWING DESCRIBED PROPERTY:

 

A PARCEL OF LAND LYING IN THE SOUTHWEST QUARTER OF SECTION 27,
TOWNSHIP 17 NORTH, RANGE 5 EAST OF THE GILA AND SALT RIVER BASE AND MERIDIAN, YAVAPAI COUNTY, ARIZONA, BEING MORE PARTICULARLY
DESCRIBED AS FOLLOWS:

 

BEGINNING AT THE SOUTH QUARTER CORNER OF SECTION 27, TOWNSHIP
17 NORTH, RANGE 5 EAST;

 

THENCE SOUTH 88 DEGREES 53 MINUTES 57 SECONDS WEST, A DISTANCE
OF 612.24 FEET TO THE SOUTHEAST CORNER OF THE SOUTHWEST QUARTER OF THE SOUTHEAST

QUARTER OF THE SOUTHWEST QUARTER OF SECTION 27;

 

THENCE NORTH 01 DEGREES 11 MINUTES 29 SECONDS WEST, A DISTANCE
OF 946.77

 

Bill of Sale (LaMerra) – Ex. A

 

 

 

    	6

    	 

     

FEET TO THE TRUE POINT OF BEGINNING;

 

THENCE SOUTH 85 DEGREES 55 MINUTES 21 SECONDS WEST, A DISTANCE
OF 113.99 FEET;

 

THENCE NORTH 24 DEGREES 08 MINUTES 42 SECONDS WEST, A DISTANCE
OF 61.87 FEET TO A POINT ON A CURVE HAVING A CENTRAL ANGLE OF 141 DEGREES 20 MINUTES

 

20 SECONDS, A RADIUS OF 131.79 FEET;

 

THENCE ALONG THE ARC OF SAID CURVE, A DISTANCE
OF 50.30 FEET; THENCE SOUTH 24 DEGREES 08 MINUTES 42 SECONDS EAST, A DISTANCE OF 26.91 FEET;

 

THENCE NORTH 85 DEGREES 55 MINUTES 21 SECONDS EAST, A DISTANCE
OF 81.55 FEET;

 

THENCE SOUTH 01 DEGREES 11 MINUTES 29 SECONDS EAST, A DISTANCE
OF 50.06 FEET TO THE TRUE POINT OF BEGINNING.

 

TOGETHER WITH THE RIGHT TO IMPROVE AND MAINTAIN THE EXISTING
ROAD AND TO RECONSTRUCT AND ENLARGE THE ROAD TO UTILIZE ALL OF THE EASEMENT PROPERTY OR ANY PART THEREOF FOR ROADWAY PURPOSES.

 

PARCEL NO. 11:

 

AN EASEMENT APPURTENANT TO PARCELS 1, 2, 3, 4 AND 5 ABOVE, FOR
ROADWAY AND PUBLIC UTILITIES CREATED IN BOOK 1920, OF OFFICIAL RECORDS, PAGE 307, OVER THAT PORTION OF THE RED ROCK LOOP ROAD DESCRIBED
IN THE ATTACHMENT TO THE INSTRUMENT OF RECORD IN BOOK 915, OF OFFICIAL RECORDS, PAGES 795-803, INCLUSIVE, RECORDS OF YAVAPAI COUNTY,
ARIZONA, LYING WITHIN THE EAST ONEHALF, WEST ONE-HALF, SOUTHEAST QUARTER, SOUTHWEST QUARTER, SECTION 27, TOWNSHIP 17 NORTH, RANGE
5 EAST OF THE GILA AND SALT RIVER BASE AND

MERIDIAN, YAVAPAI COUNTY, ARIZONA.

 

EXCEPTING FROM THE ABOVE PARCELS THE FOLLOWING PROPERTY: Lot
11, THE RETREAT AT OAK CREEK, according to Book 59 of Maps, pages 99 through 104, inclusive, records of Yavapai County, Arizona.

 

AND

 

Lots 2, 9, 10, 12, 13, 14, 17, 18 and 19, LAMERRA, according
to Book 61 of Maps, pages 27 through 32, inclusive, records of Yavapai County, Arizona.

 

Bill of Sale (LaMerra) – Ex. A

 

 

 

    	7

    	 

     

EXHIBIT B

 

SCHEDULED ASSUMED LIABILITIES

 

 

Bill of Sale (LaMerra) – Ex. B

  

    	 

    	 

     

SCHEDULE OF ASSUMED LIABILITIES

 

	1. Advance Deposit Liabilities	 	$	1,954,171	 
	2. Squire Sanders & Dempsey	 	$	54,000	 
	3. Paid Time Off	 	$	111,487	 
	4. Arizona Department of Revenue	 	$	164,877	 
	5. RDS Payment	 	$	104,840	 

 

 

Bill of Sale (LaMerra) – Ex. A

 

 

    	 

    	 

     

 

 

 

Exhibit
8(b)-ii

 

BILL
OF SALE AND GENERAL ASSIGNMENT AND ASSUMPTION

 

(L’Auberge
Property)

 

This BILL OF SALE AND
GENERAL ASSIGNMENT AND ASSUMPTION (this “Bill of Sale”) is dated as of _____________, 2013, by and between L’Auberge
Orchards, LLC, a Delaware limited liability company (“Assignor”) and L’Auberge
Newco, LLC, a Delaware limited liability company (“Assignee”).

 

This Bill of Sale is
being executed and delivered in conjunction with a Special Warranty Deed of even date herewith from Assignor to Assignee.

 

For good and valuable
consideration, the adequacy and receipt of which are hereby acknowledged, Assignor and Assignee do hereby agree as follows:

 

1.          Sale
and Assignment of Personal Property.

 

Assignor hereby sells,
transfers, assigns, delivers, sets over and conveys to Assignee all of Assignor’s right, title and interest in and to all
personal property owned or leased by Assignor now existing or at any time hereafter placed in or attached to with respect to, or
used in connection with the ownership, operation, leasing, maintenance or repair of that certain real property in Coconino County,
Arizona, and legally described on Exhibit A
attached hereto (the “Real Property”).

 

2.          General
Assignment and Assumption.

 

Assignor hereby sells,
transfers, assigns, delivers, sets over and conveys to Assignee all right, title and interest of Assignor in and to the following:

 

a.           to
the extent they may be transferred under applicable law, all licenses, permits and authorizations presently issued in connection
with the operation of all or any part of the Real Property as it is presently being operated, including but not limited to all
such permits and licenses;

 

b.           all
warranties and guarantees (if any) issued to Assignor by any manufacturer or contractor in connection with the construction or
installation of equipment included as part of the Real Property;

 

c.           all
claims against contractors and suppliers with respect to work done on or with respect to the Real Property or materials incorporated
into the Real Property;

 

d.           all
contracts in effect as of the date hereof with respect to the Real Property;

 

    	 

    	 

     

e.           all
brands, trade names, trademarks, web sites, telephone numbers and listings, deposits and other general intangibles of or relating
to the Real Property, including without limitation “L’Auberge de Sedona,” “Spa as L’Auberge de Sedona,”
and “L’Auberge Restaurant on Oak Creek”;

 

f.            all
permits, licenses, and approvals applicable to the Real Property or any business conducted thereon or therefrom;

 

g.           all
engineering documents, architectural documents and other plats, plans, specifications, drawings and surveys applicable to the Real
Property;

 

h.           all
refunds of insurance premiums associated with or related to the Real Property;

 

i.            all
returns or refunds of deposits, charges, payments or taxes associated with the Real Property or business conducted thereon by Assignor,
its subsidiaries, affiliates or agents;

 

j.            all
water rights associated with or related to the Real Property;

 

k.          all
accounts, cash and cash equivalents;

 

l.            all
other rights, privileges and appurtenances associated with the Real Property, including but not limited to all right, title and
interest in and to that certain pre-fabricated cottage currently in storage in the Schulte manufacturing facility in Avondale,
Arizona.

 

All of the foregoing items in this Section
2 are collectively referred to as the “Property Interests”).

 

3.          Acceptance
and Assumption.

 

Assignee hereby accepts
the assignment of the Property Interests and assumes the liability and obligations specifically described on Exhibit B attached
hereto (the “Scheduled Assumed Liabilities”).

 

4.          Successors
and Assigns.

 

This Bill of Sale and
General Assignment and Assumption shall be binding upon and inure to the benefit of the parties hereto and their respective successors
and assigns.

 

5.          Governing
Law.

 

This Bill of Sale and
General Assignment and Assumption shall be governed by and construed in accordance with the laws of the State of Arizona.

 

IN WITNESS WHEREOF,
this Bill of Sale and General Assignment and Assumption has been executed this _____ day of ______, 2013.

 

[SIGNATURES ON FOLLOWING
PAGES]

 

Bill of Sale (L’Auberge) –Ex.
A

 

    	2

    	 

     

	ASSIGNOR:	 
	 	 
	L’AUBERGE ORCHARDS, LLC, a Delaware limited liability company	 
	 	 
	By:	 	 
	Albert B. Spector, Jr.	 
	Its:	 	 

 

ACKNOWLEDGMENT

 

	STATE OF ARIZONA	)	 
	 	) ss	 
	COUNTY OF ________________________	)	 
	 	 	 

 

On ____________________, before me, ____________________________________,
a Notary Public in and for the State of Arizona, personally appeared ______________________, personally known to me (or proved
to me on the basis of satisfactory evidence) to be the person whose name is subscribed to the within instrument and acknowledged
to me that he/she executed the same in his/her authorized capacity, and that by his/her signature on the instrument the person,
or the entity upon behalf of which _______________________________ acted, executed the instrument.

 

 

	Signature	 	 
	My Commission Expires:	 	(Space above for official notarial seal)

 

Bill of Sale (L’Auberge) – Signature
1

 

    	 

    	 

     

	ASSIGNEE:	 
	 	 
	L’AUBERGE NEWCO, LLC, a Delaware limited 

liability company	 

 

	By:	IMH Financial Corporation, a Delaware Corporation, Sole Member	 

 

	 	By:	 	 
	 	Name:	 	 
	 	Its:	 	 

 

ACKNOWLEDGMENT

 

	STATE OF ARIZONA	)	 
	 	) ss	 
	COUNTY OF MARICOPA	)	 
	 	 	 

 

On ____________________, before me, ____________________________________,
a Notary Public in and for the State of Arizona, personally appeared ______________________, personally known to me (or proved
to me on the basis of satisfactory evidence) to be the person whose name is subscribed to the within instrument and acknowledged
to me that he/she executed the same in his/her authorized capacity, and that by his/her signature on the instrument the person,
or the entity upon behalf of which _______________________________ acted, executed the instrument.

 

	 	 	 
	Signature	 	 
	My Commission Expires:	 	(Space above for official notarial seal)

 

Bill of Sale (L’Auberge) – Signature
2

 

    	 

    	 

     

EXHIBIT A

 

LEGAL DESCRIPTION

(L’Auberge Property)

 

THE LAND REFERRED TO HEREIN BELOW IS SITUATED
IN THE COUNTY OF COCONINO,

STATE OF ARIZONA, AND IS DESCRIBED AS FOLLOWS:

 

PARCEL NO. 1:

 

A parcel of land situated in the West half of Section 8, Township
17 North, Range 6 East, of the Gila and Salt River Base and Meridian, Coconino County, Arizona, being more particularly described
as follows:

 

COMMENCING at the West quarter corner of said Section 8, as
marked by a B.L.M brass capped pipe under drain cover in sidewalk and from which the Southwest corner of said Section 8, as marked
by a B.L.M brass capped pipe in cairn, lies South 01 degrees 42 minutes 03 seconds East (basis of bearings for this description),
a distance of 2621.04 feet;

 

THENCE from said West quarter corner, North 12 degrees 54 minutes
17 seconds East (North 12 degrees 27 minutes 33 seconds East, record), a distance of 76.90 feet (76.90 feet record), to a point
on the Southeasterly right of way line of Arizona State Highway 89-A;

 

THENCE Northeasterly along said Southeasterly right of way line
being a non-tangent curve, concave to the Southeast, having a radius of 2150.00 feet (2,150.00 feet, record), a chord bearing of
North 23 degrees 04 minutes 02 seconds East and a central angle of 05 degrees 24 minutes 36 seconds (05 degrees 24 minutes 18 seconds,
record), an arc distance of 203.00 feet (203.00 feet, record), to a concrete nail with brass tag stamped “LS14184”
set at the position of a previously set cotton picker spindle with tag stamped “LS14184”;

 

THENCE continuing Northeasterly along said Southeasterly right
of way line, being a curve, concave to the Southeast, having a radius of 2150.00 feet (2,150.00 feet record), a chord bearing of
North 26 degrees 36 minutes 58 seconds East, a central angle of 01 degrees 41 minutes 17 seconds (01 degrees 41 minutes 39 seconds,
record), an arc distance of 63.35 feet (63.57 feet, record), to a concrete nail with brass tag stamped “LS14184” set
at the position of a previously set chiseled “+” in concrete;

 

THENCE departing said Southeasterly right of way line of Arizona
State Highway 89-A, South 89 degrees 51 minutes 31 seconds East (North 89 degrees 42 minutes 07 seconds East, record), a distance
of 3.74 feet to a point on the Northeasterly line of that certain tract of land acquired by the City of Sedona in December 2005
and described in Document No. 2005-3361777 of the Coconino County Recorder’s office in Coconino county, Arizona;

 

THENCE along the North line of the Orchards/L’Auberge
parcel, South 89 degrees 51 minutes 31 seconds East (North 89 degrees 42 minutes 07 seconds East, record), a distance
of 212.10 feet to a 1⁄2” rebar with cap stamped “LS14184” (previously set);

 

THENCE along the Northerly line of the Orchards/L’Auberge
parcel, South 40 degrees 28 minutes 17 seconds East (South 41 degrees 45 minutes 00 seconds East, record), a distance of 62.25
feet to the POINT OF BEGINNING;

 

Bill of Sale (L’Auberge) –Ex.
A

 

    	 

    	 

     

THENCE South 40 degrees 28 minutes 17 seconds East (South 41
degrees 45 minutes 00 seconds East, record), a distance of 47.00 feet to a 1⁄2” rebar with tag stamped “LS14184”
(previously set);

 

THENCE North 38 degrees 57 minutes 49 seconds East, (North 38
degrees 15 minutes 00 seconds East record), a distance of 150.75 feet (152.00 feet record) to a 1⁄2” rebar with tag
stamped “LS14184” (previously set).

 

THENCE South 50 degrees 57 minutes 03 seconds East, (South 51
degrees 45 minutes 00 seconds East record), a distance of 82.00 feet (82.00 feet record) to a 1⁄2” rebar with tag stamped
“LS14184” (previously set);

 

THENCE North 57 degrees 27 minutes 57 seconds East (North 56
degrees 40 minutes 00 seconds East record), a distance of 26.55 feet (26.5 feet record) to a 1⁄2” rebar with tag stamped
“LS14184” (previously set);

 

THENCE South 32 degrees 32 minutes 03 seconds East (South 33
degrees 20 minutes 00 seconds East record), a distance of 523.60 feet (542.50 feet record) to a point in Oak Creek that lies on
the Northwesterly boundary of the “Brewer Tract”, described in Docket 510, page 496, of the Coconino County Recorder’s
Office and from which a 1⁄2” rebar with tag stamped “LS14184” previously set as a witness corner lies, North
32 degrees 32 minutes 03 seconds West, a distance of 100.00 feet;

 

THENCE South 51 degrees 44 minutes 33 seconds West (no record)
a distance of 6.59 feet (no record) to the Westerly corner of said “Brewer Tract” being a portion in Oak Creek;

 

THENCE South 54 degrees 01 minutes 27 seconds East (no record),
a distance of 19.52 feet (no record) along the Southwesterly boundary of said “Brewer Tract” to a point in Oak Creek;

 

THENCE South 52 degrees 31 minutes 27 seconds West (South 51
degrees 43 minutes 30 seconds West, record), a distance of 11.99 feet (11.40 feet record) to a point in Oak Creek;

 

THENCE South 69 degrees 02 minutes 57 seconds West (South 68
degrees 15 minutes 00 seconds West record), a distance of 166.54 feet (166.54 feet) to a point in Oak Creek;

 

THENCE South 48 degrees 22 minutes 03 seconds East (South 49
degrees 10 minutes 00 seconds East, record), a distance of 60.39 feet (60.40 feet record), to a 1⁄2” rebar with tag
stamped “PE2924” (previously set);

 

THENCE South 63 degrees 20 minutes 02 seconds West, (South 62
degrees 02 minutes 45 seconds West, record), a distance of 835.28 feet (832.38 feet record) to a point in Oak Creek that is on
the West line of said Section 8 and lies South 01 degrees 42 minutes 03 seconds East, a distance of 624.60 feet from said West
quarter corner of Section 8;

 

THENCE North 01 degrees 42 minutes 03 seconds West (North 02
degrees 30 minutes 00 seconds West, record), a distance of 447.60 feet (447.60 feet record) along said West line of Section 8 to
a 1⁄2” rebar with tag stamped “LS14184” (previously set);

 

THENCE North 38 degrees 37 minutes 57 seconds East (North 37
degrees 50 minutes 00 seconds East, record), a distance of 207.55 feet to a 1⁄2” rebar with tag stamped “LS14184”
(previously set);

 

Bill of Sale (L’Auberge) –Ex.
A

 

    	3

    	 

     

THENCE North 38 degrees 09 minutes 30 seconds East (North 37
degrees 50 minutes 00 seconds East, record), a distance of 109.23 feet to a 1⁄2” rebar with no identification (previously
found):

 

THENCE North 49 degrees 44 minutes 02 seconds East, a distance
of 94.50 feet;

 

THENCE North 37 degrees 42 minutes 35 seconds East, a distance
of 174.72 feet to the POINT OF BEGINNING.

 

EXCEPTING THEREFROM the following described property:

 

A parcel of land being a portion of “Parcel 1B”
as said “Parcel 1B” is shown and described on that certain ALTA/ACSM Land Title Survey map recorded as instrument number
3490268 in the Official Records of Coconino County, said parcel being situated in the West half of Section 8, Township 17 North,
Range 6 East of the Gila and Salt River Base and Meridian in Coconino County, Arizona, and being more particularly described as
follows:

 

COMMENCING
at the West quarter corner of said Section 8, as marked by a G.L.O. brass capped pipe under drain cover in sidewalk and from which
the Southwest corner of said Section 8, as marked by a B.L.M brass capped pipe in cairn, lies South 01°42’03”
East (basis of bearings for this description), a distance of 2621.04 feet;

 

Thence
from said West quarter corner, along the West line of the Southwest quarter of said Section 8, South 01°42’03”
East, a distance of 624.60 feet to the Southwest corner of said “Parcel 1B”;

 

Thence
along the Southerly boundary of said “Parcel 1B”, North 63°20’02”
East a distance of 579.51 feet to the POINT OF BEGINNING;

 

Thence
continuing along said Southerly boundary of “Parcel 1B”, North 63°20’02”
East a distance of 255.77 feet;

 

Thence continuing along said Southerly boundary of “Parcel
1B”, North 48°22’03” West a distance
of 60.39 feet;

 

Thence
continuing along said Southerly boundary of “Parcel 1B”, North 69°02’57”
East a distance of 32.29 feet to the most Northerly corner of the Weckerly parcel as described in Docket 1525, pages 007-009 of
the Coconino County Recorder’s Office;

 

Thence
along a prolongation of the Northeasterly boundary of said Weckerly parcel, North 54°01’29”
West a distance of 23.88 feet, more or less, to the centerline of Oak Creek as it may exist from time to time in the future;

 

Thence
along said centerline of Oak Creek, as it may exist from time to time in the future, an approximate bearing of South 65°34’01”
West a distance of 111.83 feet, more or less;

 

Thence
continuing along said centerline of Oak Creek, as it may exist from time to time in the future, an approximate bearing of South
69°31’14”
West a distance of 163.52 feet, more or less, to the intersection of said centerline of Oak Creek with the Northwesterly prolongation
of the Southwesterly boundary of the Miller parcel as described in Docket 1478, pages 378 & 378A of the Coconino County Recorder’s
Office;

 

Thence
in a reversed direction of said Northwesterly prolongation of the Southwesterly boundary of the Miller parcel, South 38°15’58”
East a distance of 98.08 feet, more or less, to the POINT OF BEGINNING.

 

Bill of Sale (L’Auberge) –Ex.
A

 

    	4

    	 

     

PARCEL NO. 2:

 

An easement for ingress, egress and public utilities created
by instrument recorded December 22, 1982, in Docket 911, page 206, records of Coconino County, Arizona, more particularly described
as follows:

 

A strip of land 33.00 feet wide situated in the Southeast quarter
of Section 7, Township 17 North, Range 6 East, of the Gila and Salt River Base and Meridian, Coconino County, Arizona, being more
particularly defined as lying 16.50 feet on each side of the following described centerline:

 

COMMENCING at the East quarter corner of said Section 7, as
marked by a GLO brass capped pipe under drain cover in sidewalk and from which the Southeast corner of said Section 7, as marked
by a B.L.M. brass capped pipe, lies South 01 degrees 42 minutes 03 seconds East (basis of bearings for this description), a distance
of 2621.04 feet;

 

THENCE South 01 degrees 42 minutes 03 seconds East (South 02
degrees 30 minutes 00 seconds East, recorded), a distance of 261.40 feet (261.4 feet record) along the East line of said Southeast
quarter of Section 7 to the POINT OF BEGINNING of this center line (side lines of strip of land begin on said East line);

 

THENCE South 28 degrees 37 minutes 57 seconds West (South 27
degrees 50 minutes 00 seconds West record), a distance of 500.20 feet (500.2 feet record);

 

THENCE South 37 degrees 53 minutes 57 seconds West (South 37
degrees 06 minutes 00 seconds West, record), a distance of 330.00 feet (330.00 feet record) to the terminus of center
line:

 

EXCEPT therefrom all that portion thereof lying within the right
of way of Arizona Highway 89-A;

 

PARCEL NO. 3:

 

A perpetual, non-exclusive easement for ingress and egress as
set forth in that certain easement agreement recorded April 25, 2002 in instrument number 2002-3138455 and re-recorded July 18,
2005 in instrument number 2005-3332653 of Official Records, Coconino County, Arizona.

 

PARCEL NO. 4:

 

A parcel of land being a portion of the “Pacini Tract”
described in Parcel II in Docket 1711, page 863 and 864 of the Coconino County Recorders Office and situated in the West half of
Section 8, Township 17 North, Range 6 East, of the Gila and Salt River Base and Meridian, Coconino County, Arizona, said parcel
being more particularly described as follows:

 

COMMENCING at the West quarter corner of said Section 8, as
marked by a B.L.M brass capped pipe under drain cover in sidewalk and from which the Southwest corner of said Section 8, as marked
by a B.L.M brass capped pipe in cairn, lies South 01 degrees 42 minutes 03 seconds East (basis of bearings for this description),
a distance of 2621.04 feet;

 

Bill of Sale (L’Auberge) –Ex.
A

 

    	5

    	 

     

THENCE from said West quarter corner, North 21 degrees 27 minutes
04 seconds East, a distance of 342.00 feet (North 20 degrees 32 minutes East, a distance of 342 feet, record) to a 1⁄2”
rebar with tag stamped “LS14184” set at the position of a previously set chiseled “+” in concrete (previously
set) on the Southeasterly right of way line of Arizona Highway 89-A;

 

THENCE departing said Southeasterly right of way line of Arizona
Highway 89-A South 89 degrees 51 minutes 31 seconds East, a distance of 215.83 feet (North 89 degrees 10 minutes East, a distance
of 217.50 feet record), to a 1⁄2” rebar with plastic cap stamped “LS14184” (found);

 

THENCE South 40 degrees 28 minutes 17 seconds East, a distance
of 109.25 feet (South 41 degrees 45 minutes East, a distance of 110.77 feet record) to a 1⁄2” rebar with plastic cap
stamped “LS14184” (previously set);

 

THENCE North 38 degrees 57 minutes 49 seconds East, a distance
of 150.75 feet (North 38 degrees 15 minutes East, a distance of 152.0 feet record), to a 1⁄2” rebar with tag stamped
“LS14184” (previously set) at a corner of said “Pacini Tract”;

 

THENCE along the boundary of said “Pacini Tract”
South 50 degrees 57 minutes 03 seconds East, a distance of 82.00 feet (same as record) to a 1⁄2” rebar with tag stamped
“LS14184” (found) at a corner thereof;

 

THENCE continuing along the boundary of
said “Pacini Tract” North 57 degrees 27 minutes 57 seconds East, a distance of 26.55 feet (same as record) to a 1⁄2”
rebar with tag stamped “LS14184” (found) at a corner thereof;

 

THENCE continuing along the boundary of said “Pacini Tract”,
South 32 degrees 32 minutes 03 seconds East, a distance of 5.00 feet to the POINT OF BEGINNING;

 

THENCE North 57 degrees 27 minutes 57 seconds East, a distance
of 58.00 feet to a 1⁄2” rebar with tag stamped “LS14184”;

 

THENCE North 89 degrees 27 minutes 57 seconds East, a distance
of 35.39 feet to a 1⁄2” rebar with tag stamped “LS14184”;

 

THENCE South 00 degrees 32 minutes 03 seconds East, a distance
of 163.25 feet to a 1⁄2” rebar with tag stamped “LS14184”;

 

THENCE South 32 degrees 32 minutes 03 seconds East, a distance
of 215.13 feet to a 1⁄2” rebar with tag stamped “LS14184”;

 

THENCE South 31 degrees 56 minutes 49 seconds East, a distance
of 146.28 feet to a point on the Northwesterly boundary of the “Brewer Tract” as described in Docket 510, page 496
of the Coconino County Recorder’s Office and the Southwest corner of the said “Pacini Tract” and from which a
1⁄2” rebar with brass tag stamped “LS14184” (previously set as a witness corner) bears North 32 degrees
32 minutes 03 seconds West, a distance of 100.00 feet;

 

THENCE along the Westerly boundary of the said “Pacini
Tract”, North 32 degrees 32 minutes 03 seconds West, a distance of 518.60 feet to the POINT OF BEGINNING.

 

Bill of Sale (L’Auberge) –Ex.
A

 

    	6

    	 

     

PARCEL NO. 5:

 

INTENTIONALLY DELETED.

 

Bill of Sale (L’Auberge) –Ex.
A

 

    	7

    	 

     

EXHIBIT B

 

SCHEDULED ASSUMED LIABILITIES

 

Bill of Sale (L’Auberge) –Ex.
B

 

    	 

    	 

     

SCHEDULE OF ASSUMED LIABILITIES

 

	1.  Advance Deposit Liabilities	 	$	1,954,171	 
	2.  Squire Sanders & Dempsey	 	$	54,000	 
	3.  Paid Time Off	 	$	111,487	 
	4.  Arizona Department of Revenue	 	$	164,877	 
	5.  RDS Payment	 	$	104,840	 

 

Bill of Sale (L’Auberge) –Ex.
A

 

    	2

    	 

     

 

 

 

 

Exhibit
8(b)-iii

 

BILL
OF SALE AND GENERAL ASSIGNMENT AND ASSUMPTION

 

(Orchards
Inn Property)

 

This BILL OF SALE AND
GENERAL ASSIGNMENT AND ASSUMPTION (this “Bill of Sale”) is dated as of _____________, 2013, by and between L’Auberge
Orchards, LLC, a Delaware limited liability company (“Assignor”) and Orchards Newco, LLC, a Delaware limited
liability company (“Assignee”).

 

This Bill of Sale is
being executed and delivered in conjunction with a Special Warranty Deed of even date herewith from Assignor to Assignee.

 

For good and valuable
consideration, the adequacy and receipt of which are hereby acknowledged, Assignor and Assignee do hereby agree as follows:

 

1.          Sale
and Assignment of Personal Property.

 

Assignor hereby sells,
transfers, assigns, delivers, sets over and conveys to Assignee all of Assignor’s right, title and interest in and to all
tangible and intangible personal property including, without limitation, all such property referred to in the Deed of Trust owned
or leased by Assignor now existing or at any time hereafter placed in or attached to with respect to, or used in connection with
the ownership, operation, leasing, maintenance or repair of that certain real property in Coconino County, Arizona, and legally
described on Exhibit A attached hereto
(the “Real Property”).

 

2.          General
Assignment and Assumption.

 

Assignor hereby sells,
transfers, assigns, delivers, sets over and conveys to Assignee all right, title and interest of Assignor, without limitation,
in and to the following:

 

a.           to
the extent they may be transferred under applicable law, all licenses, permits and authorizations presently issued in connection
with the operation of all or any part of the Real Property as it is presently being operated, including but not limited to all
such permits and licenses;

 

b.           all
warranties and guarantees (if any) issued to Assignor by any manufacturer or contractor in connection with the construction or
installation of equipment included as part of the Real Property;

 

c.           all
claims against contractors and suppliers with respect to work done on or with respect to the Real Property or materials incorporated
into the Real Property;

 

d.           all
contracts in effect as of the date hereof with respect to the Real Property;

 

    	 

    	 

     

e.           all
brands, trade names, trademarks, web sites, telephone numbers and listings, deposits and other general intangibles of or relating
to the Real Property, including, without limitation, “Orchards Inn,” “Orchards Inn of Sedona,” “Canyon
Portal Motel,” and “Orchards Annex”;

 

f.            all
permits, licenses, and approvals applicable to the Real Property or any business conducted thereon or therefrom;

 

g.           all
engineering documents, architectural documents and other plats, plans, specifications, drawings and surveys applicable to the Real
Property;

 

h.           all
refunds of insurance premiums associated with or related to the Real Property;

 

i.            all
returns or refunds of deposits, charges, payments or taxes associated with the Real Property or business conducted thereon by Assignor,
its subsidiaries, affiliates or agents;

 

j.            all
water rights associated with or related to the Real Property;

 

k.          all
accounts, cash and cash equivalents; and

 

l.            all
other rights, privileges and appurtenances associated with the Real Property.

 

All of the foregoing items in this Section
2 are collectively referred to as the “Property Interests”).

 

3.          Acceptance
and Assumption.

Assignee hereby accepts
the assignment of the Property Interests and assumes the liability and obligations specifically described on Exhibit B attached
hereto (the “Scheduled Assumed Liabilities”).

 

4.          Successors
and Assigns.

This Bill of Sale and
General Assignment and Assumption shall be binding upon and inure to the benefit of the parties hereto and their respective successors
and assigns.

 

5.          Governing
Law.

This Bill of Sale and
General Assignment and Assumption shall be governed by and construed in accordance with the laws of the State of Arizona.

 

IN WITNESS WHEREOF,
this Bill of Sale and General Assignment and Assumption has been executed this _____ day of ______, 2013.

 

[SIGNATURES ON FOLLOWING
PAGES]

 

    	2

    	 

     

	ASSIGNOR:
	 
	L’AUBERGE ORCHARDS LLC, a Delaware limited liability company
	 
	By:	 
	 	Albert B. Spector, Jr.
	 	 
	Its:	 

 

ACKNOWLEDGMENT

 

	STATE OF ARIZONA	)	 
	 	) ss	 
	COUNTY OF ________________________	)	 

 

	On ____________________, before me, ____________________________________, a Notary Public in and for the State of Arizona, personally appeared ______________________, personally known to me (or proved to me on the basis of satisfactory evidence) to be the person whose name is subscribed to the within instrument and acknowledged to me that he/she executed the same in his/her authorized capacity, and that by his/her signature on the instrument the person, or the entity upon behalf of which _______________________________ acted, executed the instrument.

 

	 	 
	Signature	 
	My Commission Expires:	(Space above for official notarial seal)

  

    	Bill of Sale (Orchards Inn) – Signature 1

    	 

     

	ASSIGNEE:
	 
	ORCHARDS NEWCO, LLC, a Delaware limited liability company
	 
	By:	IMH Financial Corporation, a Delaware Corporation, Sole Member
	 	 
	 	By:	 
	 	Name:	 
	 	Its:	 

 

ACKNOWLEDGMENT

 

	STATE OF ARIZONA	)	 
	 	) ss	 
	COUNTY OF MARICOPA	)	 

 

	On ____________________, before me, ____________________________________, a Notary Public in and for the State of Arizona, personally appeared ______________________, personally known to me (or proved to me on the basis of satisfactory evidence) to be the person whose name is subscribed to the within instrument and acknowledged to me that he/she executed the same in his/her authorized capacity, and that by his/her signature on the instrument the person, or the entity upon behalf of which _______________________________ acted, executed the instrument.

 

	 	 
	Signature	 
	My Commission Expires:	(Space above for official notarial seal)

 

    	Bill of Sale (Orchards Inn) – Signature 2

    	 

     

EXHIBIT A

 

LEGAL DESCRIPTION

 

(Orchards Inn Property)

 

THE LAND REFERRED TO HEREIN BELOW IS SITUATED
IN THE COUNTY OF COCONINO,

STATE OF ARIZONA, AND IS DESCRIBED AS FOLLOWS:

 

PARCEL NO. 1:

 

A parcel of land situated in the West half of Section 8, Township
17 North, Range 6 East, of the Gila and Salt River Base and Meridian, Coconino County, Arizona, being more particularly described
as follows:

 

COMMENCING at the West quarter corner of said Section 8, as
marked by a B.L.M brass capped pipe under drain cover in sidewalk and from which the Southwest corner of said Section 8, as marked
by a B.L.M brass capped pipe in cairn, lies South 01 degrees 42 minutes 03 seconds East (basis of bearings for this description),
a distance of 2621.04 feet;

 

THENCE from said West quarter corner, North 12 degrees 54 minutes
17 seconds East (North 12 degrees 27 minutes 33 seconds East, record), a distance of 76.90 feet (76.90 feet, record) to a point
on the Southeasterly right-of-way line of Arizona State Highway 89-A;

 

THENCE Northeasterly along said Southeasterly right of way line
being a non-tangent curve, concave to the Southeast, having a radius of 2150.00 feet (2150.00 feet record)., a chord being of North
23 degrees 04 minutes 02 seconds East and a central angle of 05 degrees 24 minutes 36 seconds (05 degrees 24 minutes 18 seconds,
record), an arc distance of 203.00 feet (203.00 feet record), to a concrete nail with brass tag stamped “LS14184” set
at the position of a previously set cotton picker spindle with tag stamped “LS14184”;

 

THENCE departing said Southeasterly right of way line of Arizona
State Highway 89A, South 65 degrees 25 minutes 03 seconds East, a distance of 11.73 feet to the POINT OF BEGINNING, which lies
on the Southeasterly line of that certain tract of land acquired by the City of Sedona in December 2005 and described in Document
NO. 2005-3361777 of the Coconino County Recorder’s Office, Coconino County, Arizona;

 

THENCE along said Southeasterly line, North 24 degrees 46 minutes
32 seconds East, a distance of 23.47 feet;

 

THENCE continuing along said Southeasterly line, North 21 degrees
21 minutes 48 seconds East, a distance of 3.63 feet;

 

THENCE continuing along said Southeasterly line, North 20 degrees
52 minutes 26 seconds West, a distance of 8.33 feet;

 

THENCE continuing along said Southeasterly line, North 69 degrees
07 minutes 34 seconds East, a distance of 1.00 feet;

 

THENCE continuing along said Southeasterly line, North 19 degrees
27 minutes 50 seconds West, a distance of 6.81 feet;

 

Bill of Sale (Orchards Inn) – Ex. A

 

    	 

    	 

     

THENCE continuing along said Southeasterly line, North 26 degrees
18 minutes 08 seconds East, a distance of 19.54 feet;

 

THENCE continuing along said Southeasterly line, South 62 degrees
51 minutes 12 seconds East, a distance of 4.07 feet;

 

THENCE continuing along said Southeasterly line, North 23 degrees
53 minutes 25 seconds East, a distance of 6.93 feet;

 

THENCE continuing along said Southeasterly line of that tract
of land acquired by the City of Sedona in December 2005, North 62 degrees 35 minutes 35 seconds West, a distance of 0.55 feet to
the North line of the Orchards/L’Auberge parcel;

 

THENCE along said North line of the Orchards/L’Auberge
parcel, South 89 degrees 51 minutes 31 seconds East (North 89 degrees 42 minutes 07 seconds East, record), a distance of 212.10
feet to a 1⁄2” rebar with cap stamped “LS14184” (previously set);

 

THENCE South 40 degrees 28 minutes 17 seconds East, (South 41
degrees 45 minutes 00 seconds East, record), a distance of 62.25 feet;

 

THENCE South 37 degrees 42 minutes 35 seconds West, a distance
of 174.72 feet;

 

THENCE South 49 degrees 44 minutes 02 seconds West, a distance
of 94.50 feet to a 1⁄2” rebar with no identification (previously found);

 

THENCE North 31 degrees 49 minutes 11 seconds West (North 32
degrees 21 minutes 20 seconds West, record), a distance of 114.47 feet (113.94 feet record) to a 1⁄2” rebar with cap
stamped “LS 14184” (previously set);

 

THENCE North 22 degrees 35 minutes 10 seconds East (North 24
degrees 24 minutes 07 seconds East, record), a distance of 66.04 feet (65.00 feet, record) to a concrete nail with brass tag stamped
“LS14184”, previously set at the position of a previously set chiseled “+” in concrete;

 

THENCE North 65 degrees 25 minutes 03 seconds West, (North 65
degrees 34 minutes 02 seconds West, record), a distance of 65.96 feet to the POINT OF BEGINNING.

 

PARCEL NO. 2:

 

INTENTIONALLY DELETED.

 

PARCEL NO. 3:

 

An easement for overhead canopies and other purposes by or pursuant
to that certain Special Warranty Deed (In Lieu of Condemnation) recorded December 27, 2005 in Document No. 3361777, Official Records
of Coconino County, Arizona. 

 

    	 	2	Bill of Sale (Orchards Inn) – Ex. A

    	 

     

EXHIBIT B

 

SCHEDULED ASSUMED LIABILITIES

 

Bill of Sale (Orchards Inn) – Ex. B

 

    	 

    	 

     

SCHEDULE OF ASSUMED LIABILITIES

 

	1.  Advance Deposit Liabilities	 	$	1,954,171	 
	2.  Squire Sanders & Dempsey	 	$	54,000	 
	3.  Paid Time Off	 	$	111,487	 
	4.  Arizona Department of Revenue	 	$	164,877	 
	5.  RDS Payment	 	$	104,840	 

  

    	 	2	Bill of Sale (Orchards Inn) – Ex. A

    	 

     

 

 

 

 

EXHIBIT
8(c)-i

 

ESTOPPEL
CERTIFICATE

 

(LaMerra
Property)

 

	 	A.	Pursuant to that certain “Sedona Agreement” dated March 29, 2013 (the “Agreement”) by and among HL LLC, an Arizona limited liability company (“Grantor”), IMH SPECIAL ASSET NT 233, LLC, an Arizona limited liability company (“Noteholder”), and HL Newco, LLC, a Delaware limited liability company (“Grantee”), among others, Grantor made, executed and delivered that certain Special Warranty Deed of even date herewith (the “Deed”), as Grantor, to Grantee, its successors and assigns, as Grantee, conveying the real property in Yavapai County, Arizona, commonly known as the “LaMerra Property,” and legally described on Exhibit A attached hereto and made a part hereof (the “Property”).

 

	 	B.	The Deed was executed and delivered to Grantee in lieu of Noteholder’s exercise of its rights and remedies, including possible foreclosure of its lien under that certain Construction Deed of Trust, Assignment of Rents and Security Agreement, dated June 11, 2007, from Grantor, as Trustor, to Fidelity National Title Insurance Agency of Coconino, Inc., as Trustee, for the benefit of IMH Secured Loan Fund, LLC, a Delaware limited liability company (“Original Lender”), as Beneficiary, recorded on June 11, 2007, in Book 4513, Page 768 of the Official Records of Yavapai County, Arizona (the “Deed of Trust”). The Deed of Trust and various other documents (collectively the “Loan Documents”) secure a Promissory Note made by Grantor, as Borrower, and payable to the order of Original Lender, dated June 11, 2007, evidencing a loan from Original Lender to Grantor, in the original amount of $32,000,000.00, which was later increased to $43,435,000.00 (the “Loan”). Noteholder is now the holder and owner of the Loan and the Loan Documents.

 

	 	C.	Grantee and Grantor believe that the indebtedness secured by the Deed of Trust is greater than the fair value of the (i) Property deeded, and (ii) any other personal property conveyed by Grantor to Grantee pursuant to the Agreement.

 

	 	D.	The Deed was Grantor’s free and voluntary act; Grantor in offering to execute the Deed and in executing the same, is not acting under any duress, undue influence, misapprehension, or misrepresentation by Noteholder or Grantee in the Deed, and it is Grantor’s intention as Grantor to convey and transfer, and by the Deed, Grantor did convey and transfer to the Grantee therein, all right, title and interest absolutely, in and to the Property described in the Deed.

 

    	 	 	 

    	 

     

	 	E.	It is the express intent of Grantor, Grantee and Noteholder that, while Noteholder is releasing Grantor from a portion, but not all, of Grantor’s personal liability under the Loan Documents, the Loan Documents, and specifically the lien of the Deed of Trust, shall not be satisfied, reconveyed, released, terminated or cancelled by conveyance of the Deed, but shall expressly survive such conveyance. Nothing contained in the Deed, the Agreement or herein shall be construed to impair the rights of Noteholder, as the holder of the Loan Documents, with respect to the real and personal property granted as collateral under the Loan Documents, or to affect in any manner the right of the holder of the Loan Documents to foreclose, sell, or otherwise proceed against any such real and personal property and exercise any available remedies with respect thereto under the Loan Documents, including pursuing a deficiency against Grantor, as set forth in the Agreement. No merger of the fee estate conveyed by the Deed with the estate, title and security interest granted by the Loan Documents shall occur (notwithstanding the fact that title to all such interest may be vested in the same person or entity, or a controlled person or entity) until or unless the holder of all such interests shall execute an appropriate instrument effecting such merger and shall duly file the same in the Office of the Recorder of Yavapai County, Arizona.

 

	 	F.	This Estoppel Certificate is made on Grantor’s best knowledge and belief for the protection and benefit of Noteholder and Grantee in the Deed, their successors and assigns, and all other parties hereafter dealing with, or who may acquire an interest in the property described therein, and shall bind Grantor’s heirs, administrators, successors and assigns.

 

	 	G.	This Estoppel Certificate may be executed in any number of counterparts, each of which when so executed shall be deemed to be an original, and all taken together shall constitute one and the same agreement.

 

This Estoppel Certificate
is dated this ____ day of __________, 2013.

 

[signatures
on following pages]

 

    	2

    	 

     

	GRANTOR:
	 
	
        HL LLC, an Arizona limited liability
        company

         

	By:	 
	Name:	 
	Its:	 

 

ACKNOWLEDGMENT

 

	STATE OF ARIZONA	)	 
	 	) ss	 
	COUNTY OF ________________________	)	 

 

	On ____________________, before me, ____________________________________, a Notary Public in and for the State of Arizona, personally appeared ______________________, personally known to me (or proved to me on the basis of satisfactory evidence) to be the person whose name is subscribed to the within instrument and acknowledged to me that he/she executed the same in his/her authorized capacity, and that by his/her signature on the instrument the person, or the entity upon behalf of which _______________________________ acted, executed the instrument.

 

	 	 
	Signature	 
	My Commission Expires:	(Space above for official notarial seal)

 

Estoppel Certificate (LaMerra) – Signature
1

 

    	 	 	 

    	 

     

	GRANTEE:
	 
	HL NEWCO, LLC, a Delaware limited liability company
	 
	By:	
        IMH Financial Corporation, a Delaware
        corporation, its Sole Member

         

	 	By:	 
	 	Name:	 
	 	Its:	 

 

ACKNOWLEDGMENT

 

	STATE OF ARIZONA	)	 
	 	) ss	 
	COUNTY OF MARICOPA	)	 

 

	On ____________________, before me, ____________________________________, a Notary Public in and for the State of Arizona, personally appeared ______________________, personally known to me (or proved to me on the basis of satisfactory evidence) to be the person whose name is subscribed to the within instrument and acknowledged to me that he/she executed the same in his/her authorized capacity, and that by his/her signature on the instrument the person, or the entity upon behalf of which _______________________________ acted, executed the instrument.

 

	 	 
	Signature	 
	My Commission Expires:	(Space above for official notarial seal)

  

    	 	2	Estoppel Certificate (LaMerra) – Signature 2

    	 

     

	NOTEHOLDER:
	 
	IMH SPECIAL ASSET NT 232, an Arizona limited liability company
	 
	By:	
        IMH Financial Corporation, a Delaware
        corporation, its ____________________

         

	 	By:	 
	 	Print Name:	 
	 	Its:	 

 

ACKNOWLEDGMENT

 

	STATE OF ARIZONA	)	 
	 	) ss	 
	COUNTY OF MARICOPA	)	 
	 	 	 

 

	On ____________________, before me, ____________________________________, a Notary Public in and for the State of Arizona, personally appeared ______________________, personally known to me (or proved to me on the basis of satisfactory evidence) to be the person whose name is subscribed to the within instrument and acknowledged to me that he/she executed the same in his/her authorized capacity, and that by his/her signature on the instrument the person, or the entity upon behalf of which _______________________________ acted, executed the instrument.

 

	 	 
	Signature	 
	My Commission Expires:	(Space above for official notarial seal)

 

    	 	3	Estoppel Certificate (LaMerra) – Signature 3

    	 

     

EXHIBIT A

 

LEGAL
DESCRIPTION OF THE PROPERTY

 

(LaMerra
Property)

 

THE LAND REFERRED TO HEREIN BELOW IS SITUATED
IN THE COUNTY OF YAVAPAI, STATE OF ARIZONA, AND IS DESCRIBED AS FOLLOWS:

 

PARCEL NO. 1:

 

THE NORTH HALF OF THE NORTHEAST QUARTER OF SECTION 34, TOWNSHIP
17 NORTH, RANGE 5 EAST OF THE GILA AND SALT RIVER BASE AND MERIDIAN, YAVAPAI COUNTY, ARIZONA;

 

EXCEPT BEGINNING AT A POINT IN THE SOUTHERLY LINE OF SAID LAND,
WHICH POINT IS DISTANT 650 FEET EASTERLY ALONG SAID SOUTHERLY LINE FROM THE SOUTHWEST CORNER OF SAID LAND;

 

THENCE WESTERLY ALONG SAID SOUTHERLY LINE TO THE SOUTHWEST CORNER
OF SAID LAND;

 

THENCE NORTHERLY ALONG THE WESTERLY LINE OF SAID LAND, A DISTANCE
OF 670 FEET;

 

THENCE SOUTHEASTERLY IN A DIRECT LINE TO THE POINT OF BEGINNING.

 

PARCEL NO. 2:

 

THE SOUTHEAST QUARTER OF THE SOUTHEAST QUARTER (BEING LOT 13)
OF SECTION 27, TOWNSHIP 17 NORTH, RANGE 5 EAST OF THE GILA AND SALT RIVER BASE AND MERIDIAN, YAVAPAI COUNTY, ARIZONA.

 

PARCEL NO.3:

 

ALL THAT PORTION OF THE SOUTHEAST QUARTER OF SECTION 27, TOWNSHIP
17 NORTH, RANGE 5 EAST OF THE GILA AND SALT RIVER BASE AND MERIDIAN, YAVAPAI COUNTY, ARIZONA, DESCRIBED AS FOLLOWS:

 

BEGINNING AT THE SOUTH QUARTER CORNER OF SAID SECTION 27, MARKED
BY A G.L.O. BRASS CAP;

 

THENCE NORTH 2 DEGREES 37 MINUTES 30 SECONDS WEST, 115.90 FEET
TO AN EXISTING FENCE;

 

THENCE NORTH 89 DEGREES 24 MINUTES 50 SECONDS EAST, ALONG SAID
FENCE, 204.31 FEET;

 

THENCE SOUTH 2 DEGREES 37 MINUTES 30 SECONDS EAST TO A POINT
ON THE SOUTH LINE OF SAID SECTION 27;

 

THENCE SOUTH 89 DEGREES 00 MINUTES WEST, ALONG SAID SECTION
LINE TO THE ACTUAL POINT OF BEGINNING.

 

Estoppel Certificate (LaMerra) –Exhibit
A

 

    	 	 	 

    	 

     

PARCEL NO.4:

 

THAT PORTION OF THE SOUTHEAST QUARTER OF THE SOUTHWEST QUARTER
OF SECTION 27, TOWNSHIP 17 NORTH, RANGE 5 EAST OF THE GILA AND SALT RIVER BASE AND MERIDIAN, YAVAPAI COUNTY, ARIZONA, LYING EASTERLY
OF A LINE LOCATED 100 FEET WEST OF AND PARALLEL TO SAID EAST LINE OF THE SOUTHWEST QUARTER, AND SOUTH OF A LINE HAVING A COURSE
OF NORTH 85 DEGREES 13 MINUTES EAST THROUGH A POINT THAT LIES NORTH 2 DEGREES 37 MINUTES 30 SECONDS WEST, 118.5 FEET FROM THE SOUTH
QUARTER CORNER OF SECTION 27 MARKED BY A G.L.O. BRASS CAP.

 

PARCEL NO. 5:

 

ALL THAT PORTION OF THE SOUTHWEST QUARTER OF THE SOUTHEAST QUARTER
OF SECTION 27, TOWNSHIP 17 NORTH, RANGE 5 EAST OF THE GILA AND SALT RIVER BASE AND MERIDIAN, YAVAPAI COUNTY, ARIZONA, LYING SOUTHERLY
OF AND CONTIGUOUS TO THE FOLLOWING DESCRIBED BOUNDARY LINE:

 

FROM THE NORTHEAST CORNER OF THE QUIT CLAIM PARCEL OF LAND DESCRIBED
AS BOOK 938 OF OFFICIAL RECORDS, PAGE 57, YAVAPAI COUNTY RECORDERS OFFICE, THE TRUE POINT OF BEGINNING, SAID CORNER LYING ON THE
EAST-WEST BARBED WIRE FENCE AS SHOWN ON THE RECORD OF SURVEY RECORDED AS BOOK 17 OF LAND SURVEYS AT PAGE 17, AND ALSO ON THE SOUTHERLY
LINE OF THE MONTERASTELLI (SIC) BOUNDARY AS SHOWN ON RESULTS OF SURVEY BY PATRICK NEVILLE, RECORDED AS BOOK 16, AT PAGE 100, DATED
JULY 14, 1992;

 

THENCE SOUTH 89 DEGREES 53 MINUTES 02 SECONDS EAST, ALONG THE
FENCE AND ITS EASTERLY EXTENSION AND ALONG THE SOUTHERLY LINE OF THE MONTERASTELLI BOUNDARY, 791.99 FEET;

 

THENCE SOUTH 41 DEGREES 19 MINUTES 24 SECONDS EAST, 39.09 FEET
TO THE SOUTH LINE OF SECTION 27, PER THE ARIZONA ENGINEERING COMPANY RECORD OF SURVEY RECORDED AS BOOK 10 OF RECORDS OF SURVEY,
AT PAGE 99;

 

THENCE SOUTH 88 DEGREES 14 MINUTES 32 SECONDS EAST, ALONG THE
SOUTH LINE OF SECTION 27, 75.15 FEET;

 

THENCE SOUTH 73 DEGREES 27 MINUTES 42 SECONDS EAST, 55.92 FEET;

 

THENCE NORTH 22 DEGREES 46 MINUTES 34 SECONDS EAST, 11.20 FEET;

 

THENCE NORTH 87 DEGREES 02 MINUTES 45 SECONDS EAST, 21.97 FEET;

 

THENCE SOUTH 81 DEGREES 16 MINUTES 09 SECONDS EAST, 29.96 FEET;

 

THENCE SOUTH 65 DEGREES 43 MINUTES 54 SECONDS EAST, 22.05 FEET
TO THE EAST LINE OF THE NORTHWEST QUARTER OF THE NORTHEAST QUARTER OF SECTION 34, WHICH IS THE POINT OF TERMINUS OF THE BOUNDARY
LINE;

 

THE BASIS OF BEARINGS FOR THIS DESCRIPTION IS SOUTH 88 DEGREES
14 MINUTES 32 SECONDS EAST, FROM THE SOUTH QUARTER CORNER OF SECTION 27 TO THE SOUTHEAST CORNER OF SECTION 27, ACCORDING TO THE
ARIZONA ENGINEERING COMPANY RESULTS OF SURVEY RECORDED AS BOOK 10 OF RECORDS OF SURVEYS, AT PAGE 99, YAVAPAI COUNTY RECORDERS OFFICE.

 

    	 	2	Estoppel Certificate (LaMerra) – Exhibit A

    	 

     

PARCEL NO. 6:

 

EASEMENT FOR ROADWAY FOR INGRESS AND EGRESS FOR THE PURPOSE
OF TRAVEL AND MAINTENANCE AS CREATED IN BOOK 3833, OF OFFICIAL RECORDS, PAGE 934, BEING 50 FEET WIDE, LYING 30 FEET ON THE WESTERLY
AND SOUTHERLY SIDES AND 20 FEET ON THE EASTERLY AND NORTHERLY SIDES OF THE FOLLOWING DESCRIBED PROPERTY:

 

THE CENTERLINE OF AN EXISTING DIRT ROAD IN SECTION 27, TOWNSHIP
17 NORTH, RANGE 5 EAST OF THE GILA AND SALT RIVER BASE AND MERIDIAN, YAVAPAI COUNTY, ARIZONA, MORE PARTICULARLY DESCRIBED BY METES
AND BOUNDS AS FOLLOWS:

 

FROM THE SOUTHWEST CORNER OF SECTION 27;

 

THENCE NORTH 86 DEGREES 13 MINUTES 45 SECONDS EAST, A DISTANCE
OF 2448.25 FEET TO A CONCRETE MONUMENT MARKED 1/4 ON THE WEST FACE, WITH AN ALUMINUM CAP MARKED LS 13010, ACCEPTED BY JOHN A. LUCKOW,
ARIZONA REGISTERED LAND SURVEYOR, AS THE TRUE LOCATION OF THE SOUTH QUARTER CORNER OF RECORD OF SURVEY DATED FEBRUARY 24, 1990,
RECORDED IN BOOK 10 OF LAND SURVEYORS, PAGE 99, YAVAPAI COUNTY RECORDERS OFFICE, WHICH IS IDENTICAL TO THE SOUTHEAST CORNER OF
THE PROPERTY AS CONVEYED TO HARRIET KOHLER (ALSO KNOWN AS HARRIET K. SEAMAN) BY INSTRUMENTS RECORDED IN THE OFFICE OF THE RECORDER
OF YAVAPAI COUNTY, ARIZONA, IN BOOK 179 OF DEEDS, PAGE 586 AND IN BOOK 357 OF OFFICIAL RECORDS, PAGE 233 AND WHICH IS ALSO IDENTICAL
TO THE NORTHEAST CORNER OF PARCEL 4 ABOVE, ACCEPTED AND UTILIZED AS THE QUARTER CORNER BETWEEN SECTIONS 27 AND 34, PRIOR TO THE
1956 GLO DEPENDENT RESURVEY OF SECTION 27 BY WHICH THE QUARTER CORNER BETWEEN SECTIONS 27 AND 35 HAS BEEN MARKED BY A STANDARD
GLO BRASS CAPPED PIPE, WHICH IS THE SAME GLO BRASS CAP ESTABLISHING THE SOUTHEAST CORNER OF THE PROPERTY DESCRIBED IN PARCEL 4
ABOVE;

 

THENCE SOUTH 85 DEGREES 13 MINUTES 00 SECONDS WEST, 15.05 FEET,
TO THE TRUE

 

POINT OF BEGINNING OF THIS DESCRIPTION:

 

THENCE NORTH 07 DEGREES 16 MINUTES 03 SECONDS
EAST, 55.48 FEET;

 

THENCE NORTH 00 DEGREES 25 MINUTES 35 SECONDS EAST, 201.21 FEET
TO THE EAST LINE OF THE KOHLER PARCEL AS DESCRIBED IN WARRANTY DEED RECORDED IN BOOK 179 OF DEEDS, PAGE 586, YAVAPAI COUNTY RECORDERS
OFFICE, STATE OF ARIZONA;

 

THENCE NORTH 00 DEGREES 25 MINUTES 35 SECONDS EAST, 283.79 FEET
TO THE P.C. OF A CURVE, HAVING A RADIUS OF 215.00 FEET AND A CENTRAL ANGLE OF 18 DEGREES 55 MINUTES 40 SECONDS;

 

THENCE NORTHERLY ALONG A CURVE TO THE LEFT, AN ARC DISTANCE
OF 71.03 FEET, TO THE EAST LINE OF THE KOHLER PARCEL AND THE BEGINNING OF A CURVE, HAVING A RADIUS OF 215.00 FEET AND A CENTRAL
ANGLE OF 18 DEGREES 53 MINUTES 55 SECONDS;

 

THENCE NORTHERLY ALONG A CURVE TO THE LEFT, AN ARC DISTANCE
OF 70.92 FEET TO THE PT.;

 

    	 	3	Estoppel Certificate (LaMerra) – Exhibit A

    	 

     

THENCE NORTH 37 DEGREES 24 MINUTES 00 SECONDS WEST, 164.52 FEET
TO THE P.C. OF A CURVE, HAVING A RADIUS OF 130.00 FEET AND A CENTRAL ANGLE OF 07 DEGREES 11 MINUTES 55 SECONDS;

 

THENCE NORTHWESTERLY ALONG A CURVE TO THE LEFT, AN ARC DISTANCE
OF 16.33 FEET TO THE NORTH LINE OF THE KOHLER PARCEL AND THE BEGINNING OF A CURVE, HAVING A RADIUS OF 130.00 FEET AND A CENTRAL
ANGLE OF 32 DEGREES 59 MINUTES 56 SECONDS;

 

THENCE NORTHWESTERLY ALONG A CURVE TO THE LEFT, AN ARC DISTANCE
OF 74.87 FEET TO THE P.T.;

 

THENCE NORTH 77 DEGREES 35 MINUTES 51 SECONDS WEST, 92.01 FEET
TO THE P.C. OF A CURVE, HAVING A RADIUS OF 250.00 FEET AND A CENTRAL ANGLE OF 10 DEGREES 44 MINUTES 58 SECONDS;

 

THENCE WESTERLY ALONG A CURVE TO THE LEFT, AN ARC DISTANCE OF
46.90 FEET TO THE NORTH LINE OF THE KOHLER PARCEL AND THE BEGINNING OF A CURVE, HAV1NG A RADIUS OF 250.00 FEET AND A CENTRAL ANGLE
OF 10 DEGREES 51 MINUTES 24 SECONDS;

 

THENCE WESTERLY ALONG A CURVE TO THE LEFT, AN ARC DISTANCE OF
47.37 FEET TO THE P.T.;

 

THENCE SOUTH 80 DEGREES 47 MINUTES 47 SECONDS WEST, 160.95 FEET;

 

THENCE SOUTH 84 DEGREES 31 MINUTES 30 SECONDS WEST, 60.56 FEET
TO THE TERMINUS OF THIS DESCRIPTION AT THE WEST LINE OF THE KOHLER PARCEL, THE NORTHWEST CORNER OF WHICH BEARS NORTH 01 DEGREES
01 MINUTES 44 SECONDS WEST, A DISTANCE OF 116.37 FEET.

 

PARCEL NO. 7:

 

EASEMENT FOR IRRIGATION DITCH PURPOSES AS CREATED IN BOOK 2250,
OF OFFICIAL RECORDS, PAGE 382, OVER AND ACROSS THE REAL PROPERTY DESCRIBED BELOW. THE CENTERLINE OF THE EASEMENT IS THE CENTERLINE
OF THE EXISTING DITCH AND THE EASEMENT IS OF THE WIDTH REASONABLY NECESSARY FOR THE MAINTENANCE AND OPERATION OF THE DITCH.

 

REAL PROPERTY WHICH EASEMENT CROSSES IS DESCRIBED AS FOLLOWS:

 

THE FOLLOWING DESCRIBED PORTION OF THE EAST HALF OF THE SOUTHEAST
QUARTER OF THE SOUTHWEST QUARTER OF SECTION 27, TOWNSHIP 17 NORTH OF RANGE 5 EAST OF THE GILA AND SALT RIVER BASE AND MERIDIAN,
YAVAPAI COUNTY, ARIZONA, TO WIT:

 

BEGINNING AT THE QUARTER CORNER BETWEEN SECTIONS 27 AND 34,
ABOVE TOWNSHIP AND RANGE, SAID CORNER BEING MARKED BY A STONE MONUMENT, WHICH WAS ACCEPTED BY JIM LAMPORT, SURVEYOR IN 1928, AND
BY OLD SETTLERS FOR MANY YEARS;

 

THENCE FROM SAID POINT NORTH ON THE QUARTER SECTION LINE THROUGH
THE CENTER OF SAID SECTION 27, (THIS LINE BEING ASSUMED NORTH FOR THE PURPOSE OF THIS DESCRIPTION) 774.0 FEET TO A STONE MONUMENT;

 

    	 	4	Estoppel Certificate (LaMerra) – Exhibit A

    	 

     

THENCE NORTH 73 DEGREES 34 MINUTES WEST, 659.6 FEET TO A STONE
MONUMENT;

 

THENCE SOUTH 03 DEGREES 45 MINUTES WEST, 1021.3 FEET TO A STONE
MONUMENT ON THE SOUTH LINE OF Said) SECTION 27;

 

THENCE NORTH 85 DEGREES 13 MINUTES EAST, 701.9 FEET ALONG SAID
SECTION LINE TO THE POINT OF BEGINNING.

 

PARCEL NO. 8:

 

A NON-EXCLUSIVE EASEMENT FOR ROADWAY AND UTILITY PURPOSES OVER,
ACROSS AND UNDER THE FOLLOWING DESCRIBED PARCEL:

 

A PORTION OF THE SOUTHWEST QUARTER OF THE SOUTHEAST QUARTER
OF SECTION 27, TOWNSHIP 17 NORTH, RANGE 5 EAST OF THE GILA AND SALT RIVER BASE AND MERIDIAN, YAVAPAI COUNTY, ARIZONA;

 

BEGINNING AT A POINT ON THE WEST LINE OF THE SOUTHWEST QUARTER
OF THE SOUTHEAST QUARTER OF SECTION 27 BEARING NORTH 01 DEGREES 29 MINUTES 54 SECONDS WEST, A DISTANCE OF 600 FEET FROM THE SOUTH
QUARTER CORNER OF SECTION 27 MARKED BY A G.L.O. BRASS CAP;

 

THENCE NORTH 01 DEGREES 29 MINUTES 54 SECONDS
WEST ALONG THE WEST LINE OF THE SOUTHWEST QUARTER OF THE SOUTHEAST QUARTER OF SECTION 27, A DISTANCE OF 180.05 FEET;

 

THENCE SOUTH 35 DEGREES 58 MINUTES 39 SECONDS EAST, A DISTANCE
OF 44.71 FEET;

 

THENCE SOUTH 0 DEGREES 48 MINUTES 45 SECONDS WEST, A DISTANCE
OF 143.31 FEET;

 

THENCE SOUTH 88 DEGREES 30 MINUTES 06 SECONDS WEST, A DISTANCE
OF 19.54 FEET TO THE PLACE OF BEGINNING.

 

PARCEL NO. 9:

 

A NON-EXCLUSIVE EASEMENT FOR ROADWAY AND UTILITY PURPOSES AS
CREATED IN BOOK 938 OF OFFICIAL RECORDS, PAGE 65, OVER, ACROSS AND UNDER THE FOLLOWING DESCRIBED PARCELS:

 

PARCEL A:

 

THE FOLLOWING DESCRIBED PORTION OF THE SOUTHWEST QUARTER OF
THE SOUTHEAST QUARTER OF SECTION 27, TOWNSHIP 17 NORTH, RANGE 5 EAST OF THE GILA AND SALT RIVER BASE AND MERIDIAN, YAVAPAI COUNTY,
ARIZONA;

 

BEGINNING AT A POINT ON THE WEST LINE OF THE SOUTHWEST QUARTER
OF THE SOUTHEAST QUARTER OF SECTION 27 BEARING NORTH 01 DEGREES 29 MINUTES 54 SECONDS WEST, A DISTANCE OF 115.84 FEET FROM THE
SOUTH QUARTER CORNER OF SECTION 27, MARKED BY A G.L.O. BRASS CAP;

 

THENCE NORTH 01 DEGREES 29 MINUTES 54 SECONDS WEST ALONG THE
WEST LINE OF THE SOUTHWEST QUARTER OF THE SOUTHEAST QUARTER OF SECTION 27, A DISTANCE OF 484.16 FEET;

  

    	 	5	Estoppel Certificate (LaMerra) – Exhibit A

    	 

     

THENCE NORTH 88 DEGREES 30 MINUTES 06 SECONDS EAST, A DISTANCE
OF 19.54 FEET;

 

THENCE SOUTH 0 DEGREES 48 MINUTES 45 SECONDS WEST, A DISTANCE
OF 484.55 FEET TO THE PLACE OF BEGINNING.

 

PARCEL B:

 

A PORTION OF THE EAST HALF OF THE SOUTHEAST QUARTER OF THE SOUTHWEST
QUARTER OF SECTION 27, TOWNSHIP 17 NORTH, RANGE 5 EAST OF THE GILA AND SALT RIVER BASE AND MERIDIAN, YAVAPAI COUNTY, ARIZONA;

 

BEGINNING AT A POINT ON THE EAST LINE OF
THE SOUTHEAST QUARTER OF THE SOUTHWEST QUARTER OF SECTION 27 BEARING NORTH 01 DEGREES 29 MINUTES 54 SECONDS WEST, A DISTANCE OF
889.73 FEET FROM THE SOUTH QUARTER CORNER OF SECTION 27 MARKED BY A G.L.O. BRASS CAP;

 

THENCE NORTH 73 DEGREES 03 MINUTES 08 SECONDS WEST, A DISTANCE
OF 103.00 FEET TO THE TRUE POINT OF BEGINNING;

 

THENCE NORTH 73 DEGREES 03 MINUTES 08 SECONDS WEST, A DISTANCE
OF 303.41 FEET. (THE DIRECTION AND LOCATIONS OF THE ABOVE LINE DETERMINED BY STONE MONUMENTS AS CALLED FOR IN THAT CERTAIN DEED
OF CORRECTION OF RECORD IN THE OFFICE OF THE COUNTY RECORDER, YAVAPAI COUNTY, ARIZONA, IN BOOK 172 OF DEEDS, PAGE 495 THEREOF);

 

THENCE NORTH 82 DEGREES 32 MINUTES 53 SECONDS EAST, A DISTANCE
OF 67.32 FEET;

 

THENCE SOUTH 75 DEGREES 10 MINUTES 23 SECONDS EAST, A DISTANCE
OF 195.82 FEET;

 

THENCE SOUTH 35 DEGREES 58 MINUTES 39 SECONDS EAST, A DISTANCE
OF 58.16 FEET TO THE PLACE OF BEGINNING.

 

PARCEL NO. 10:

 

A NON-EXCLUSIVE EASEMENT FOR ROADWAY AND PUBLIC UTILITY PURPOSES
AS CREATED IN BOOK 1920 OF OFFICIAL RECORDS, PAGE 314, EMBRACING ALL OF THE FOLLOWING DESCRIBED PROPERTY:

 

A PARCEL OF LAND LYING IN THE SOUTHWEST QUARTER OF SECTION 27,
TOWNSHIP 17 NORTH, RANGE 5 EAST OF THE GILA AND SALT RIVER BASE AND MERIDIAN, YAVAPAI COUNTY, ARIZONA, BEING MORE PARTICULARLY
DESCRIBED AS FOLLOWS:

 

BEGINNING AT THE SOUTH QUARTER CORNER OF SECTION 27, TOWNSHIP
17 NORTH, RANGE 5 EAST;

 

THENCE SOUTH 88 DEGREES 53 MINUTES 57 SECONDS WEST, A DISTANCE
OF 612.24 FEET TO THE SOUTHEAST CORNER OF THE SOUTHWEST QUARTER OF THE SOUTHEAST QUARTER OF THE SOUTHWEST QUARTER OF SECTION 27;

 

THENCE NORTH 01 DEGREES 11 MINUTES 29 SECONDS WEST, A DISTANCE
OF 946.77 FEET TO THE TRUE POINT OF BEGINNING;

 

    	 	6	Estoppel Certificate (LaMerra) – Exhibit A

    	 

     

THENCE SOUTH 85 DEGREES 55 MINUTES 21 SECONDS WEST, A DISTANCE
OF 113.99 FEET;

 

THENCE NORTH 24 DEGREES 08 MINUTES 42 SECONDS WEST, A DISTANCE
OF 61.87 FEET TO A POINT ON A CURVE HAVING A CENTRAL ANGLE OF 141 DEGREES 20 MINUTES 20 SECONDS, A RADIUS OF 131.79 FEET;

 

THENCE ALONG THE ARC OF SAID CURVE, A DISTANCE
OF 50.30 FEET;

 

THENCE SOUTH 24 DEGREES 08 MINUTES 42 SECONDS EAST, A DISTANCE
OF 26.91 FEET;

 

THENCE NORTH 85 DEGREES 55 MINUTES 21 SECONDS EAST, A DISTANCE
OF 81.55 FEET;

 

THENCE SOUTH 01 DEGREES 11 MINUTES 29 SECONDS EAST, A DISTANCE
OF 50.06 FEET TO THE TRUE POINT OF BEGINNING.

 

TOGETHER WITH THE RIGHT TO IMPROVE AND MAINTAIN THE EXISTING
ROAD AND TO RECONSTRUCT AND ENLARGE THE ROAD TO UTILIZE ALL OF THE EASEMENT PROPERTY OR ANY PART THEREOF FOR ROADWAY PURPOSES.

 

PARCEL NO. 11:

 

AN EASEMENT APPURTENANT TO PARCELS 1, 2, 3, 4 AND 5 ABOVE, FOR
ROADWAY AND PUBLIC UTILITIES CREATED IN BOOK 1920, OF OFFICIAL RECORDS, PAGE 307, OVER THAT PORTION OF THE RED ROCK LOOP ROAD DESCRIBED
IN THE ATTACHMENT TO THE INSTRUMENT OF RECORD IN BOOK 915, OF OFFICIAL RECORDS, PAGES 795-803, INCLUSIVE, RECORDS OF YAVAPAI COUNTY,
ARIZONA, LYING WITHIN THE EAST ONEHALF, WEST ONE-HALF, SOUTHEAST QUARTER, SOUTHWEST QUARTER, SECTION 27, TOWNSHIP 17 NORTH, RANGE
5 EAST OF THE GILA AND SALT RIVER BASE AND MERIDIAN, YAVAPAI COUNTY, ARIZONA.

 

EXCEPTING FROM THE ABOVE PARCELS THE FOLLOWING PROPERTY:

 

Lot 11, THE RETREAT AT OAK CREEK, according to Book 59 of Maps,
pages 99 through 104, inclusive, records of Yavapai County, Arizona.

 

AND

 

Lots 2, 9, 10, 12, 13, 14, 17, 18 and 19, LAMERRA, according
to Book 61 of Maps, pages 27 through 32, inclusive, records of Yavapai County,
Arizona.

 

    	 	7	Estoppel Certificate (LaMerra) – Exhibit A

    	 

     

 

 

 

 

exhibit
8(c)-ii

ESTOPPEL
CERTIFICATE

 

(L’Auberge
Property)

 

	 	A.	Pursuant to that certain Amended and Restated Sedona Agreement with an effective date of March 28, 2013 (the “Agreement”) by and among L’Auberge Orchards, LLC, an Arizona limited liability company (“Grantor”), IMH SPECIAL ASSET NT 232, LLC, an Arizona limited liability company (“Noteholder”), and L’Auberge Newco, LLC, a Delaware limited liability company (“Grantee”), among others, Grantor made, executed and delivered that certain Special Warranty Deed of even date herewith (the “Deed”), as Grantor, to Grantee, its successors and assigns, as Grantee, conveying, in part, the real property in Coconino County, Arizona, commonly known as “L’Auberge de Sedona,” and legally described on Exhibit A attached hereto and made a part hereof (the “Property”).

 

	 	B.	The Deed was executed and delivered to Grantee in lieu of Noteholder’s exercise of its rights and remedies, including possible foreclosure of its liens under that certain Construction Deed of Trust, Assignment of Rents, Security Agreement and Fixture Filing, dated May 7, 2008, from Grantor, as Trustor, to Transnation Title Insurance Company, as Trustee, for the benefit of IMH Secured Loan Fund, LLC a Delaware limited liability company (“Original Lender”), as Beneficiary, recorded on May 9, 2008, as Instrument No. 3485966, in the Official Records of Coconino County, Arizona (the “Deed of Trust”), and certain documents related thereto (collectively, the “Loan Documents”). The Loan Documents secure a Promissory Note made by Grantor, as Borrower, and payable to the order of Original Lender, dated May 7, 2008, evidencing a loan from Original Lender to Grantor, in the original amount of $72,250,000.00 (the “Loan”). Noteholder is now the holder and owner of the Loan and the Loan Documents.

 

	 	C.	Grantee and Grantor believe that the indebtedness secured by the Loan Documents is greater than the fair value of: (i) the Property deeded, (ii) the Orchards Inn Property, as defined in the Agreement, deeded to an affiliate of Grantee concurrently with the deeding of the Property, (iii) the interest in the lease being assigned to an affiliate of Grantee pursuant to the Assignment of Lease, as defined in the Agreement, (iv) the interest in the limited liability company being assigned to an affiliate of Grantee pursuant to an Assignment of Membership Interest, as defined in the Agreement, and (v) any other personal property conveyed by Grantor to Grantee pursuant to the Agreement.

 

	 	D.	The Deed was Grantor’s free and voluntary act; Grantor in offering to execute the Deed and in executing the same, is not acting under any duress, undue influence, misapprehension, or misrepresentation by Noteholder or Grantee in the Deed, and it is Grantor’s intention as Grantor to convey and transfer, and by the Deed, Grantor did convey and transfer to the Grantee therein, all right, title and interest absolutely, in and to the Property described in the Deed.

 

    	 	 	 

    	 

     

	 	E.	It is the express intent of Grantor, Grantee and Noteholder that, while Noteholder is releasing Grantor from personal liability under the Loan Documents, the Loan Documents, and specifically the lien of the Deed of Trust, shall not be satisfied, reconveyed, released, terminated or cancelled by conveyance of the Deed, but shall expressly survive such conveyance. Nothing contained in the Deed, the Agreement or herein shall be construed to impair the rights of Noteholder, as the holder of the Loan Documents, with respect to the real and personal property granted as collateral under the Loan Documents, or to affect in any manner the right of the holder of the Loan Documents to foreclose, sell, or otherwise proceed against any such real and personal property and exercise any available remedies with respect thereto under the Loan Documents. No merger of the fee estate conveyed by the Deed with the estate, title and security interest granted by the Loan Documents shall occur (notwithstanding the fact that title to all such interest may be vested in the same person or entity, or a controlled person or entity) until or unless the holder of all such interests shall execute an appropriate instrument effecting such merger and shall duly file the same in the Office of the Recorder of Coconino County, Arizona.

 

	 	F.	This Estoppel Certificate is made on Grantor’s best knowledge and belief for the protection and benefit of Noteholder and Grantee in the Deed, their successors and assigns, and all other parties hereafter dealing with, or who may acquire an interest in the property described therein, and shall bind Grantor’s heirs, administrators, successors and assigns.

 

	 	G.	This Estoppel Certificate may be executed in any number of counterparts, each of which when so executed shall be deemed to be an original, and all taken together shall constitute one and the same agreement.

 

This Estoppel Certificate
in Support of Deed in Lieu is dated this ____ day of ______________________, 2013.

 

[signatures
on following pageS]

 

    	2

    	 

     

 

	GRANTOR:
	 
	
        L’AUBERGE ORCHARDS LLC, an Arizona
        limited liability company

         

	By:	 
	Name:	 
	Its:	 

 

 

ACKNOWLEDGMENT

 

	STATE OF ARIZONA	)	 
	 	) ss	 
	COUNTY OF _________________________	)	 

 

	On ____________________, before me, ____________________________________, a Notary Public in and for the State of Arizona, personally appeared ______________________, personally known to me (or proved to me on the basis of satisfactory evidence) to be the person whose name is subscribed to the within instrument and acknowledged to me that he/she executed the same in his/her authorized capacity, and that by his/her signature on the instrument the person, or the entity upon behalf of which _______________________________ acted, executed the instrument.

 

	 	 
	Signature	 
	My Commission Expires:	(Space above for official notarial seal)

 

    	Estoppel Certificate (L’Auberge) – Signature 1

    	 

     

 

	GRANTEE:
	 
	
        L’AUBERGE NEWCO, LLC, a Delaware
        limited liability company

         

	By:	
        IMH Financial Corporation,

        a Delaware corporation, its Sole Member

         

	 	By:	 
	 	Name:	 
	 	Its:	 

 

 

ACKNOWLEDGMENT

 

	STATE OF ARIZONA	)	 
	 	) ss	 
	COUNTY OF MARICOPA	)	 

 

	On ____________________, before me, ____________________________________, a Notary Public in and for the State of Arizona, personally appeared ______________________, personally known to me (or proved to me on the basis of satisfactory evidence) to be the person whose name is subscribed to the within instrument and acknowledged to me that he/she executed the same in his/her authorized capacity, and that by his/her signature on the instrument the person, or the entity upon behalf of which _______________________________ acted, executed the instrument.

 

	 	 
	Signature	 
	My Commission Expires:	(Space above for official notarial seal)

 

    	Estoppel Certificate (L’Auberge) – Signature 2

    	 

     

 

	NOTEHOLDER:
	 
	IMH SPECIAL ASSET NT 232, LLC, an Arizona limited liability company
	 	 
	By:	
        IMH Financial Corporation, a Delaware
        corporation, its

        ____________________

         

	 	By:	 
	 	Name:	 
	 	Its:	 

 

ACKNOWLEDGMENT

 

	STATE OF ARIZONA	)	 
	 	) ss	 
	COUNTY OF MARICOPA	)	 

 

	On ____________________, before me, ____________________________________, a Notary Public in and for the State of Arizona, personally appeared ______________________, personally known to me (or proved to me on the basis of satisfactory evidence) to be the person whose name is subscribed to the within instrument and acknowledged to me that he/she executed the same in his/her authorized capacity, and that by his/her signature on the instrument the person, or the entity upon behalf of which _______________________________ acted, executed the instrument.

 

	 	 
	Signature	 
	My Commission Expires:	(Space above for official notarial seal)

 

    	Estoppel Certificate (L’Auberge) – Signature 3

    	 

     

EXHIBIT
A

 

LEGAL DESCRIPTION OF THE L’AUBERGE
PROPERTY

 

THE LAND REFERRED TO HEREIN BELOW IS SITUATED
IN THE COUNTY OF COCONINO,

STATE OF ARIZONA, AND IS DESCRIBED AS FOLLOWS:

 

PARCEL NO. 1:

 

A parcel of land situated in the West half of Section 8, Township
17 North, Range 6 East, of the Gila and Salt River Base and Meridian, Coconino County, Arizona, being more particularly described
as follows:

 

COMMENCING at the West quarter corner of said Section 8, as
marked by a B.L.M brass capped pipe under drain cover in sidewalk and from which the Southwest corner of said Section 8, as marked
by a B.L.M brass capped pipe in cairn, lies South 01 degrees 42 minutes 03 seconds East (basis of bearings for this description),
a distance of 2621.04 feet;

 

THENCE from said West quarter corner, North 12 degrees 54 minutes
17 seconds East (North 12 degrees 27 minutes 33 seconds East, record), a distance of 76.90 feet (76.90 feet record), to a point
on the Southeasterly right of way line of Arizona State Highway 89-A;

 

THENCE Northeasterly along said Southeasterly right of way line
being a non-tangent curve, concave to the Southeast, having a radius of 2150.00 feet (2,150.00 feet, record), a chord bearing of
North 23 degrees 04 minutes 02 seconds East and a central angle of 05 degrees 24 minutes 36 seconds (05 degrees 24 minutes 18 seconds,
record), an arc distance of 203.00 feet (203.00 feet, record), to a concrete nail with brass tag stamped “LS14184”
set at the position of a previously set cotton picker spindle with tag stamped “LS14184”;

 

THENCE continuing Northeasterly along said Southeasterly right
of way line, being a curve, concave to the Southeast, having a radius of 2150.00 feet (2,150.00 feet record), a chord bearing of
North 26 degrees 36 minutes 58 seconds East, a central angle of 01 degrees 41 minutes 17 seconds (01 degrees 41 minutes 39 seconds,
record), an arc distance of 63.35 feet (63.57 feet, record), to a concrete nail with brass tag stamped “LS14184” set
at the position of a previously set chiseled “+” in concrete;

 

THENCE departing said Southeasterly right of way line of Arizona
State Highway 89-A, South 89 degrees 51 minutes 31 seconds East (North 89 degrees 42 minutes 07 seconds East, record), a distance
of 3.74 feet to a point on the Northeasterly line of that certain tract of land acquired by the City of Sedona in December 2005
and described in Document No. 2005-3361777 of the Coconino County Recorder’s office in Coconino county, Arizona;

 

THENCE along the North line of the Orchards/L’Auberge
parcel, South 89 degrees 51 minutes 31 seconds East (North 89 degrees 42 minutes 07 seconds East, record), a distance
of 212.10 feet to a 1⁄2” rebar with cap stamped “LS14184” (previously set); THENCE along the Northerly line
of the Orchards/L’Auberge parcel, South 40 degrees 28 minutes 17 seconds East (South 41 degrees 45 minutes 00 seconds East,
record), a distance of 62.25 feet to the POINT OF BEGINNING;

 

Estoppel Certificate (L’Auberge) –
Exhibit A

 

    	 	 	 

    	 

     

THENCE South 40 degrees 28 minutes 17 seconds East (South 41
degrees 45 minutes 00 seconds East, record), a distance of 47.00 feet to a 1⁄2” rebar with tag stamped “LS14184”
(previously set);

 

THENCE North 38 degrees 57 minutes 49 seconds East, (North 38
degrees 15 minutes 00 seconds East record), a distance of 150.75 feet (152.00 feet record) to a 1⁄2” rebar with tag
stamped “LS14184” (previously set).

 

THENCE South 50 degrees 57 minutes 03 seconds East, (South 51
degrees 45 minutes 00 seconds East record), a distance of 82.00 feet (82.00 feet record) to a 1⁄2” rebar with tag stamped
“LS14184” (previously set);

 

THENCE North 57 degrees 27 minutes 57 seconds East (North 56
degrees 40 minutes 00 seconds East record), a distance of 26.55 feet (26.5 feet record) to a 1⁄2” rebar with tag stamped
“LS14184” (previously set);

 

THENCE South 32 degrees 32 minutes 03 seconds East (South 33
degrees 20 minutes 00 seconds East record), a distance of 523.60 feet (542.50 feet record) to a point in Oak Creek that lies on
the Northwesterly boundary of the “Brewer Tract”, described in Docket 510, page 496, of the Coconino County Recorder’s
Office and from which a 1⁄2” rebar with tag stamped “LS14184” previously set as a witness corner lies, North
32 degrees 32 minutes 03 seconds West, a distance of 100.00 feet;

 

THENCE South 51 degrees 44 minutes 33 seconds West (no record)
a distance of 6.59 feet (no record) to the Westerly corner of said “Brewer Tract” being a portion in Oak Creek;

 

THENCE South 54 degrees 01 minutes 27 seconds East (no record),
a distance of 19.52 feet (no record) along the Southwesterly boundary of said “Brewer Tract” to a point in Oak Creek;

 

THENCE South 52 degrees 31 minutes 27 seconds West (South 51
degrees 43 minutes 30 seconds West, record), a distance of 11.99 feet (11.40 feet record) to a point in Oak Creek;

 

THENCE South 69 degrees 02 minutes 57 seconds West (South 68
degrees 15 minutes 00 seconds West record), a distance of 166.54 feet (166.54 feet) to a point in Oak Creek;

 

THENCE South 48 degrees 22 minutes 03 seconds East (South 49
degrees 10 minutes 00 seconds East, record), a distance of 60.39 feet (60.40 feet record), to a 1⁄2” rebar with tag
stamped “PE2924” (previously set);

 

THENCE South 63 degrees 20 minutes 02 seconds West, (South 62
degrees 02 minutes 45 seconds West, record), a distance of 835.28 feet (832.38 feet record) to a point in Oak Creek that is on
the West line of said Section 8 and lies South 01 degrees 42 minutes 03 seconds East, a distance of 624.60 feet from said West
quarter corner of Section 8;

 

THENCE North 01 degrees 42 minutes 03 seconds West (North 02
degrees 30 minutes 00 seconds West, record), a distance of 447.60 feet (447.60 feet record) along said West line of Section 8 to
a 1⁄2” rebar with tag stamped “LS14184” (previously set);

 

THENCE North 38 degrees 37 minutes 57 seconds East (North 37
degrees 50 minutes 00 seconds East, record), a distance of 207.55 feet to a 1⁄2” rebar with tag stamped “LS14184”
(previously set);

  

    	 	2	Estoppel Certificate (L’Auberge) – Exhibit A

    	 

     

THENCE North 38 degrees 09 minutes 30 seconds East (North 37
degrees 50 minutes 00 seconds East, record), a distance of 109.23 feet to a 1⁄2” rebar with no identification (previously
found):

 

THENCE North 49 degrees 44 minutes 02 seconds East, a distance
of 94.50 feet;

 

THENCE North 37 degrees 42 minutes 35 seconds East, a distance
of 174.72 feet to the POINT OF BEGINNING.

 

EXCEPTING THEREFROM the following described property:

 

A parcel of land being a portion of “Parcel 1B”
as said “Parcel 1B” is shown and described on that certain ALTA/ACSM Land Title Survey map recorded as instrument number
3490268 in the Official Records of Coconino County, said parcel being situated in the West half of Section 8, Township 17 North,
Range 6 East of the Gila and Salt River Base and Meridian in Coconino County, Arizona, and being more particularly described as
follows:

 

COMMENCING
at the West quarter corner of said Section 8, as marked by a G.L.O. brass capped pipe under drain cover in sidewalk and from which
the Southwest corner of said Section 8, as marked by a B.L.M brass capped pipe in cairn, lies South 01°42’03”
East (basis of bearings for this description), a distance of 2621.04 feet;

 

Thence
from said West quarter corner, along the West line of the Southwest quarter of said Section 8, South 01°42’03”
East, a distance of 624.60 feet to the Southwest corner of said “Parcel 1B”;

 

Thence
along the Southerly boundary of said “Parcel 1B”, North 63°20’02”
East a distance of 579.51 feet to the POINT OF BEGINNING;

 

Thence
continuing along said Southerly boundary of “Parcel 1B”, North 63°20’02”
East a distance of 255.77 feet;

 

Thence continuing along said Southerly boundary of “Parcel
1B”, North 48°22’03” West a

distance of 60.39 feet;

 

Thence
continuing along said Southerly boundary of “Parcel 1B”, North 69°02’57”
East a distance of 32.29 feet to the most Northerly corner of the Weckerly parcel as described in Docket 1525, pages 007-009 of
the Coconino County Recorder’s Office;

 

Thence
along a prolongation of the Northeasterly boundary of said Weckerly parcel, North 54°01’29”
West a distance of 23.88 feet, more or less, to the centerline of Oak Creek as it may exist from time to time in the future;

 

Thence
along said centerline of Oak Creek, as it may exist from time to time in the future, an approximate bearing of South 65°34’01”
West a distance of 111.83 feet, more or less;

 

Thence
continuing along said centerline of Oak Creek, as it may exist from time to time in the future, an approximate bearing of South
69°31’14”
West a distance of 163.52 feet, more or less, to the intersection of said centerline of Oak Creek with the Northwesterly prolongation
of the Southwesterly boundary of the Miller parcel as described in Docket 1478, pages 378 & 378A of the Coconino County Recorder’s
Office;

 

Thence
in a reversed direction of said Northwesterly prolongation of the Southwesterly boundary of the Miller parcel, South 38°15’58”
East a distance of 98.08 feet, more or less, to the POINT OF BEGINNING.

 

    	 	3	Estoppel Certificate (L’Auberge) – Exhibit A

    	 

     

PARCEL NO. 2:

 

An easement for ingress, egress and public utilities created
by instrument recorded December 22, 1982, in Docket 911, page 206, records of Coconino County, Arizona, more particularly described
as follows:

 

A strip of land 33.00 feet wide situated in the Southeast quarter
of Section 7, Township 17 North, Range 6 East, of the Gila and Salt River Base and Meridian, Coconino County, Arizona, being more
particularly defined as lying 16.50 feet on each side of the following described centerline:

 

COMMENCING at the East quarter corner of said Section 7, as
marked by a GLO brass capped pipe under drain cover in sidewalk and from which the Southeast corner of said Section 7, as marked
by a B.L.M. brass capped pipe, lies South 01 degrees 42 minutes 03 seconds East (basis of bearings for this description), a distance
of 2621.04 feet;

 

THENCE South 01 degrees 42 minutes 03 seconds East (South 02
degrees 30 minutes 00 seconds East, recorded), a distance of 261.40 feet (261.4 feet record) along the East line of said Southeast
quarter of Section 7 to the POINT OF BEGINNING of this center line (side lines of strip of land begin on said East line);

 

THENCE South 28 degrees 37 minutes 57 seconds West (South 27
degrees 50 minutes 00 seconds West record), a distance of 500.20 feet (500.2 feet record);

 

THENCE South 37 degrees 53 minutes 57 seconds West (South 37
degrees 06 minutes 00 seconds West, record), a distance of 330.00 feet (330.00 feet record) to the terminus of center
line:

 

EXCEPT therefrom all that portion thereof lying within the right
of way of Arizona Highway 89-A;

 

PARCEL NO. 3:

 

A perpetual, non-exclusive easement for ingress and egress as
set forth in that certain easement agreement recorded April 25, 2002 in instrument number 2002-3138455 and re-recorded July 18,
2005 in instrument number 2005-3332653 of Official Records, Coconino County, Arizona.

 

PARCEL NO. 4:

 

A parcel of land being a portion of the “Pacini Tract”
described in Parcel II in Docket 1711, page 863 and 864 of the Coconino County Recorders Office and situated in the West half of
Section 8, Township 17 North, Range 6 East, of the Gila and Salt River Base and Meridian, Coconino County, Arizona, said parcel
being more particularly described as follows:

 

COMMENCING at the West quarter corner of said Section 8, as
marked by a B.L.M brass capped pipe under drain cover in sidewalk and from which the Southwest corner of said Section 8, as marked
by a B.L.M brass capped pipe in cairn, lies South 01 degrees 42 minutes 03 seconds East (basis of bearings for this description),
a distance of 2621.04 feet;

 

    	 	4	Estoppel Certificate (L’Auberge) – Exhibit A

    	 

     

THENCE from said West quarter corner, North 21 degrees 27 minutes
04 seconds East, a distance of 342.00 feet (North 20 degrees 32 minutes East, a distance of 342 feet, record) to a 1⁄2”
rebar with tag stamped “LS14184” set at the position of a previously set chiseled “+” in concrete (previously
set) on the Southeasterly right of way line of Arizona Highway 89-A;

 

THENCE departing said Southeasterly right of way line of Arizona
Highway 89-A South 89 degrees 51 minutes 31 seconds East, a distance of 215.83 feet (North 89 degrees 10 minutes East, a distance
of 217.50 feet record), to a 1⁄2” rebar with plastic cap stamped “LS14184” (found);

 

THENCE South 40 degrees 28 minutes 17 seconds East, a distance
of 109.25 feet (South 41 degrees 45 minutes East, a distance of 110.77 feet record) to a 1⁄2” rebar with plastic cap
stamped “LS14184” (previously set);

 

THENCE North 38 degrees 57 minutes 49 seconds East, a distance
of 150.75 feet (North 38 degrees 15 minutes East, a distance of 152.0 feet record), to a 1⁄2” rebar with tag stamped
“LS14184” (previously set) at a corner of said “Pacini Tract”;

 

THENCE along the boundary of said “Pacini
Tract” South 50 degrees 57 minutes 03 seconds East, a distance of 82.00 feet (same as record) to a 1⁄2” rebar
with tag stamped “LS14184” (found) at a corner thereof;

 

THENCE continuing along the boundary of said “Pacini Tract”
North 57 degrees 27 minutes 57 seconds East, a distance of 26.55 feet (same as record) to a 1⁄2” rebar with tag stamped
“LS14184” (found) at a corner thereof;

 

THENCE continuing along the boundary of said “Pacini Tract”,
South 32 degrees 32 minutes 03 seconds East, a distance of 5.00 feet to the POINT OF BEGINNING;

 

THENCE North 57 degrees 27 minutes 57 seconds East, a distance
of 58.00 feet to a 1⁄2” rebar with tag stamped “LS14184”;

 

THENCE North 89 degrees 27 minutes 57 seconds East, a distance
of 35.39 feet to a 1⁄2” rebar with tag stamped “LS14184”;

 

THENCE South 00 degrees 32 minutes 03 seconds East, a distance
of 163.25 feet to a 1⁄2” rebar with tag stamped “LS14184”;

 

THENCE South 32 degrees 32 minutes 03 seconds East, a distance
of 215.13 feet to a 1⁄2” rebar with tag stamped “LS14184”;

 

THENCE South 31 degrees 56 minutes 49 seconds East, a distance
of 146.28 feet to a point on the Northwesterly boundary of the “Brewer Tract” as described in Docket 510, page 496
of the Coconino County Recorder’s Office and the Southwest corner of the said “Pacini Tract” and from which a
1⁄2” rebar with brass tag stamped “LS14184” (previously set as a witness corner) bears North 32 degrees
32 minutes 03 seconds West, a distance of 100.00 feet;

 

THENCE along the Westerly boundary of the said “Pacini
Tract”, North 32 degrees 32 minutes 03 seconds West, a distance of 518.60 feet to the POINT OF BEGINNING.

 

    	 	5	Estoppel Certificate (L’Auberge) – Exhibit A

    	 

     

PARCEL NO. 5:

 

INTENTIONALLY DELETED.

 

    	 	6	Estoppel Certificate (L’Auberge) – Exhibit A

    	 

     

 

 

 

 

EXHIBIT 8(c)-iii

 

ESTOPPEL CERTIFICATE

(Orchards Inn Property)

 

	 	A.	Pursuant to that certain "Sedona Agreement" dated March 29, 2013 (the "Agreement") by and among L'AUBERGE ORCHARDS, LLC, an Arizona limited liability company ("Grantor"), IMH SPECIAL ASSET NT 232, LLC, an Arizona limited liability company ("Noteholder"), and ORCHARDS NEWCO, LLC, a Delaware limited liability company ("Grantee"), among others, Grantor made, executed and delivered that certain Special Warranty Deed of even date herewith (the "Deed"), as Grantor, to Grantee, its successors and assigns, as Grantee, conveying the real property in Coconino County, Arizona, a portion of which is legally described on Exhibit A attached hereto and made a part hereof, and is commonly known as the "Orchards Inn Property" (the "Property").

 

	 	B.	The Deed was executed and delivered to Grantee in lieu of Noteholder's exercise of its rights and remedies, including possible foreclosure of its lien under that certain Construction Deed of Trust, Assignment of Rents and Security Agreement, dated May 7, 2008, from Grantor, as Trustor, to Transaction Title Insurance Company, as Trustee, for the benefit of IMH Secured Loan Fund, LLC, a Delaware limited liability company ("Original Lender"), as Beneficiary, recorded on May 9, 2008, as Instrument No. 3485966, in the Official Records of Coconino County, Arizona (the "Deed of Trust"). The Deed of Trust and various other documents (collectively the "Loan Documents") secure a Promissory Note made by Grantor, as Borrower, and payable to the order of Original Lender, dated May 7, 2008, evidencing a loan from Original Lender to Grantor, in the original amount of $72,250,000.00 (the "Loan"). Noteholder is now the holder and owner of the Loan and the Loan Documents.

 

	 	C.	Grantee and Grantor believe that the indebtedness secured by the Deed of Trust is greater than the fair value of: (i) the Property deeded, (ii) the L'Auberge Property, and the Schnebly Hill Property, as defined in the Agreement, deeded to an affiliate of Grantee concurrently with the deeding of the Property, (iii) the interest in the lease being assigned to an affiliate of Grantee pursuant to the Assignment of Lease, as defined in the Agreement, (iv) the interest in the limited liability company being assigned to an affiliate of Grantee pursuant to an Assignment of Membership Interest, as defined in the Agreement and (v) any other personal property conveyed by Grantor to Grantee pursuant to the Agreement.

 

	 	D.	The Deed was Grantor's free and voluntary act; Grantor in offering to execute the Deed and in executing the same, is not acting under any duress, undue influence, misapprehension, or misrepresentation by Noteholder or Grantee in the Deed, and it is Grantor's intention as Grantor to convey and transfer, and by the Deed, Grantor did convey and transfer to the Grantee therein, all right, title and interest absolutely, in and to the Property described in the Deed.

 

    	 

    	 

     

	 	E.	It is the express intent of Grantor, Grantee and Noteholder that, while Noteholder is releasing Grantor from personal liability under the Loan Documents, the Loan Documents, and specifically the lien of the Deed of Trust, shall not be satisfied, reconveyed, released, terminated or cancelled by conveyance of the Deed, but shall expressly survive such conveyance. Nothing contained in the Deed, the Agreement or herein shall be construed to impair the rights of Noteholder, as the holder of the Loan Documents, with respect to the real and personal property granted as collateral under the Loan Documents, or to affect in any manner the right of the holder of the Loan Documents to foreclose, sell, or otherwise proceed against any such real and personal property and exercise any available remedies with respect thereto under the Loan Documents. No merger of the fee estate conveyed by the Deed with the estate, title and security interest granted by the Loan Documents shall occur (notwithstanding the fact that title to all such interest may be vested in the same person or entity or a controlled person or entity) until or unless the holder of all such interests shall execute an appropriate instrument effecting such merger and shall duly file the same in the Office of the Recorder of Coconino County, Arizona.

 

	 	F.	This Estoppel Certificate is made on Grantor's best knowledge and belief for the protection and benefit of Noteholder and Grantee in the Deed, their successors and assigns, and all other parties hereafter dealing with, or who may acquire an interest in the property described therein, and shall bind Grantor's heirs, administrators, successors and assigns.

 

	 	G.	This Estoppel Certificate may be executed in any number of counterparts, each of which when so executed shall be deemed to be an original, and all taken together shall constitute one and the same agreement.

 

This Estoppel Certificate in Support of
Deed in Lieu is dated this _____ day of _______ 2013.

 

[SIGNATURES ON FOLLOWING PAGES]

  

    	2

    	 

     

 

	GRANTOR:	 
	 	 
	L’AUBERGE ORCHARDS, LLC, an Arizona 

limited liability company	 
	 	 
	By:	 	 
	Name:	 	 
	Its:	 	 

 

ACKNOWLEDGMENT

 

	STATE OF ARIZONA	)	 
	 	) ss	 
	COUNTY OF ____________________________	)	 
	 	 	 

 

On ____________________, before me, ____________________________________,
a Notary Public in and for the State of Arizona, personally appeared ______________________, personally known to me (or proved
to me on the basis of satisfactory evidence) to be the person whose name is subscribed to the within instrument and acknowledged
to me that he/she executed the same in his/her authorized capacity, and that by his/her signature on the instrument the person,
or the entity upon behalf of which _______________________________ acted, executed the instrument.

 

	 	 
	Signature	 
	My Commission Expires:	(Space above for official notarial seal)

 

Estoppel Certificate (Orchards Inn) - Signature
1

 

    	 

    	 

     

	GRANTEE:
	 
	ORCHARDS NEWCO, LLC, a Delaware 

limited liability company 

 

	By:	
        IMH Financial Corporation,

        a Delaware corporation, its Sole Member
	 

 

	 	By:	 	 
	 	Name:	 	 
	 	Its:	 	 

 

ACKNOWLEDGMENT

 

	STATE OF ARIZONA	)	 
	 	) ss	 
	COUNTY OF MARICOPA	)	 
	 	 	 

 

On ____________________, before me, ____________________________________,
a Notary Public in and for the State of Arizona, personally appeared ______________________, personally known to me (or proved
to me on the basis of satisfactory evidence) to be the person whose name is subscribed to the within instrument and acknowledged
to me that he/she executed the same in his/her authorized capacity, and that by his/her signature on the instrument the person,
or the entity upon behalf of which _______________________________ acted, executed the instrument.

 

	 	 
	Signature	 
	My Commission Expires:	(Space above for official notarial seal)

 

Estoppel Certificate (Orchards Inn) - Signature
2

 

    	2

    	 

     

	NOTEHOLDER:	 
	 	 
	IMH SPECIAL ASSET NT 232, LLC, an 

Arizona limited liability company	 

 

	By:	IMH Financial Corporation, a 

Delaware corporation, Sole Member	 

 

	 	By:	 	 
	 	Name:	 	 
	 	Its:	 	 

 

ACKNOWLEDGMENT

 

	STATE OF ARIZONA	)	 
	 	) ss	 
	COUNTY OF MARICOPA	)	 
	 	 	 

 

On ____________________, before me, ____________________________________,
a Notary Public in and for the State of Arizona, personally appeared ______________________, personally known to me (or proved
to me on the basis of satisfactory evidence) to be the person whose name is subscribed to the within instrument and acknowledged
to me that he/she executed the same in his/her authorized capacity, and that by his/her signature on the instrument the person,
or the entity upon behalf of which _______________________________ acted, executed the instrument.

 

 

	Signature	 	 
	My Commission Expires:	 	(Space above for official notarial seal)

 

Estoppel Certificate (Orchards Inn) - Signature
3

 

    	3

    	 

     

EXHIBIT
A

 

LEGAL
DESCRIPTION OF THE PROPERTY

 

 

(Orchards Inn Property)

 

THE LAND REFERRED TO HEREIN BELOW IS SITUATED
IN THE COUNTY OF COCONINO, STATE OF ARIZONA, AND IS DESCRIBED AS FOLLOWS:

 

PARCEL NO. 1:

 

A parcel of land situated in the West half of Section 8, Township
17 North, Range 6 East, of the Gila and Salt River Base and Meridian, Coconino County, Arizona, being more particularly described
as follows:

 

COMMENCING at the West quarter corner of said Section 8, as
marked by a B.L.M brass capped pipe under drain cover in sidewalk and from which the Southwest corner of said Section 8, as marked
by a B.L.M brass capped pipe in cairn, lies South 01 degrees 42 minutes 03 seconds East (basis of bearings for this description),
a distance of 2621.04 feet;

 

THENCE from said West quarter corner, North 12 degrees 54 minutes
17 seconds East (North 12 degrees 27 minutes 33 seconds East, record), a distance of 76.90 feet (76.90 feet, record) to a point
on the Southeasterly right-of-way line of Arizona State Highway 89-A;

 

THENCE Northeasterly along said Southeasterly right of way line
being a non-tangent curve, concave to the Southeast, having a radius of 2150.00 feet (2150.00 feet record)., a chord being of North
23 degrees 04 minutes 02 seconds East and a central angle of 05 degrees 24 minutes 36 seconds (05 degrees 24 minutes 18 seconds,
record), an arc distance of 203.00 feet (203.00 feet record), to a concrete nail with brass tag stamped “LS14184” set
at the position of a previously set cotton picker spindle with tag stamped “LS14184”;

 

THENCE departing said Southeasterly right of way line of Arizona
State Highway 89A, South 65 degrees 25 minutes 03 seconds East, a distance of 11.73 feet to the POINT OF BEGINNING, which lies
on the Southeasterly line of that certain tract of land acquired by the City of Sedona in December 2005 and described in Document
NO. 2005-3361777 of the Coconino County Recorder’s Office, Coconino County, Arizona;

 

THENCE along said Southeasterly line, North 24 degrees 46 minutes
32 seconds East, a distance of 23.47 feet;

 

THENCE continuing along said Southeasterly line, North 21 degrees
21 minutes 48 seconds East, a distance of 3.63 feet;

 

THENCE continuing along said Southeasterly line, North 20 degrees
52 minutes 26 seconds West, a distance of 8.33 feet;

 

THENCE continuing along said Southeasterly line, North 69 degrees
07 minutes 34 seconds East, a distance of 1.00 feet;

 

THENCE continuing along said Southeasterly line, North 19 degrees
27 minutes 50 seconds West, a distance of 6.81 feet;

 

Estoppel Certificate (Orchards Inn) –
Exhibit A

 

    	 

    	 

     

THENCE continuing along said Southeasterly line, North 26 degrees
18 minutes 08 seconds East, a distance of 19.54 feet;

 

THENCE continuing along said Southeasterly line, South 62 degrees
51 minutes 12 seconds East, a distance of 4.07 feet;

 

THENCE continuing along said Southeasterly line, North 23 degrees
53 minutes 25 seconds East, a distance of 6.93 feet;

 

THENCE continuing along said Southeasterly line of that tract
of land acquired by the City of Sedona in December 2005, North 62 degrees 35 minutes 35 seconds West, a distance of 0.55 feet to
the North line of the Orchards/L’Auberge parcel;

 

THENCE along said North line of the Orchards/L’Auberge
parcel, South 89 degrees 51 minutes 31 seconds East (North 89 degrees 42 minutes 07 seconds East, record), a distance of 212.10
feet to a 1⁄2” rebar with cap stamped “LS14184” (previously set);

 

THENCE South 40 degrees 28 minutes 17 seconds East, (South 41
degrees 45 minutes 00 seconds East, record), a distance of 62.25 feet;

 

THENCE South 37 degrees 42 minutes 35 seconds West, a distance
of 174.72 feet;

 

THENCE South 49 degrees 44 minutes 02 seconds West, a distance
of 94.50 feet to a 1⁄2” rebar with no identification (previously found);

 

THENCE North 31 degrees 49 minutes 11 seconds West (North 32
degrees 21 minutes 20 seconds West, record), a distance of 114.47 feet (113.94 feet record) to a 1⁄2” rebar with cap
stamped “LS 14184” (previously set);

 

THENCE North 22 degrees 35 minutes 10 seconds East (North 24
degrees 24 minutes 07 seconds East, record), a distance of 66.04 feet (65.00 feet, record) to a concrete nail with brass tag stamped
“LS14184”, previously set at the position of a previously set chiseled “+” in concrete;

 

THENCE North 65 degrees 25 minutes 03 seconds West, (North 65
degrees 34 minutes 02 seconds West, record), a distance of 65.96 feet to the POINT OF BEGINNING.

 

PARCEL NO. 2:

 

INTENTIONALLY DELETED.

 

PARCEL NO. 3:

 

An easement for overhead canopies and other purposes by or pursuant
to that certain Special Warranty Deed (In Lieu of Condemnation) recorded December 27, 2005 in Document No. 3361777, Official Records
of Coconino County, Arizona.

 

Estoppel Certificate (Orchards Inn) –
Exhibit A

 

    	 

    	 

     

 

 

 

EXHIBIT 8(g)

 

ASSIGNMENT AND ASSUMPTION AGREEMENT

 

(L’Auberge de Sedona LLC Assets
and Liabilities)

 

THIS ASSIGNMENT AND
ASSUMPTION AGREEMENT (“Assignment”) is made and entered into as of this _____ day of ______________, 2013 by
and between L’Auberge de Sedona LLC, an Arizona limited liability company
(“Assignor”), and L’Auberge Newco, LLC, a Delaware limited
liability company (“Assignee”).

 

WHEREAS, the Assignor
and Assignee are parties to that certain “Sedona Agreement” dated March 29, 2013 whereby the Assignor, among
others, has agreed to, among other things, convey and transfer to Assignee certain assets and interests owned, held and/or controlled
by the Assignor, as identified in the Sedona Agreement and subject to the terms and conditions of the Sedona Agreement, for good
and valuable consideration,

 

WHEREAS, Assignor desires
to assign all of its assets and those certain liabilities described on Exhibit A to Assignee, and Assignee desires to accept
and assume such assets and certain liabilities,

 

WHEREAS, the parties
have agreed to execute this Assignment in order to effect such assignment, delegation and assumption on the terms and conditions
set forth herein,

 

NOW, THEREFORE, for
good and valuable consideration, the adequacy and receipt of which are hereby acknowledged, Assignor and Assignee do hereby agree
as follows:

 

	 	1.	General Assignment.

 

Assignor hereby sells,
transfers, assigns, delivers, sets over and conveys to Assignee all right, title and interest of Assignor, in and to all assets,
including without limitation all personal property owned or leased by Assignor now existing or at any time hereafter acquired,
and all right, title and interest in and to the following:

 

a.           to
the extent they may be transferred under applicable law, all licenses, permits and authorizations presently issued in connection
with the operation of all or any part of the Real Property as it is presently being operated including but not limited to all such
permits and licenses;

 

b.           all
warranties and guarantees (if any) issued to Assignor by any manufacturer or contractor in connection with the construction or
installation of equipment included as part of the Real Property;

 

c.           all
claims against contractors and suppliers with respect to work done on or with respect to the Real Property or materials incorporated
into the Real Property;

 

d.           all
contracts in effect as of the date hereof with respect to the Real Property;

 

    	 

    	 

     

e.           all
brands, trade names, trademarks, web sites, telephone numbers and listings, deposits and other general intangibles of or relating
to the Real Property;

 

f.            all
permits, licenses, and approvals applicable to the Real Property or any business conducted thereon or therefrom;

 

g.           all
engineering documents, architectural documents and other plats, plans, specifications, drawings and surveys applicable to the Real
Property;

 

h.           all
refunds of insurance premiums associated with or related to the Real Property;

 

i.            all
returns or refunds of deposits, charges, payments or taxes associated with the Real Property or business conducted thereon by Assignor,
its subsidiaries, affiliates or agents;

 

j.            all
water rights associated with or related to the Real Property;

 

k.          all
legal, equitable and/or administrative claims whatsoever, whether known or unknown, filed or unfiled;

 

l.            all
accounts, cash and cash equivalents; and

 

m.           all
other rights, privileges and appurtenances associated with the Real Property.

 

All of the foregoing
items in this Section are collectively referred to as the “Property Interests”.

 

	 	2.	Acceptance and Assumption.

 

Assignee hereby accepts
the assignment of the Property Interests and assumes the liability and obligations specifically described on Exhibit A attached
hereto (the “Scheduled Assumed Liabilities”),to the extent the same are liabilities or obligations of the Assignor.

 

	 	3.	Further Assurances.

 

The parties shall execute
such further documents and do any and all such further things as may be necessary to implement and carry out the intent of this
Assignment.

 

	 	4.	Successors and Assigns.

 

This Assignment shall
be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.

 

	 	5.	Governing Law.

 

This Assignment shall
be governed by and construed in accordance with the laws of the State of Arizona.

 

    	2

    	 

     

	 	6.	Counterparts.

 

This Assignment may
be executed in any number of counterparts, each of which when so executed shall be deemed to be an original and all of which taken
together shall constitute one and the same agreement.

 

[SIGNATURES ON FOLLOWING
PAGES]

 

    	3

    	 

     

IN WITNESS WHEREOF,
this Assignment been executed as of the date first stated above.

 

	ASSIGNOR:	 
	 	 
	L’AUBERGE DE SEDONA LLC,	 
	an Arizona limited liability company	 
	 	 
	By:	 	 
	 	Albert B. Spector, Jr.	 
	Its:	 	 

 

ACKNOWLEDGMENT

 

	STATE OF ARIZONA	)	 
	 	) ss	 
	COUNTY OF ______________________	)	 
	 	 	 

 

On ____________________, before me, ____________________________________,
a Notary Public in and for the State of Arizona, personally appeared ______________________, personally known to me (or proved
to me on the basis of satisfactory evidence) to be the person whose name is subscribed to the within instrument and acknowledged
to me that he/she executed the same in his/her authorized capacity, and that by his/her signature on the instrument the person,
or the entity upon behalf of which _______________________________ acted, executed the instrument.

 

	 	 
	Signature	 
	My Commission Expires:	(Space above for official notarial seal)

  

    	Assignment and Assumption (L’Auberge de Sedona LLC) – Signature 1

    	 

     

	ASSIGNEE	 
	 	 
	L’AUBERGE NEWCO, LLC, a Delaware	 
	limited liability company	 
	 	 
	By:	IMH Financial Corporation,	 
	 	a Delaware corporation, Sole Member	 
	 	 
	 	By:	 	 
	 	Name:	 	 
	 	Its:	 	 

 

ACKNOWLEDGMENT

 

	STATE OF ARIZONA	)	 
	 	) ss	 
	COUNTY OF MARICOPA	)	 
	 	 	 

 

On ____________________, before me, ____________________________________,
a Notary Public in and for the State of Arizona, personally appeared ______________________, personally known to me (or proved
to me on the basis of satisfactory evidence) to be the person whose name is subscribed to the within instrument and acknowledged
to me that he/she executed the same in his/her authorized capacity, and that by his/her signature on the instrument the person,
or the entity upon behalf of which _______________________________ acted, executed the instrument.

 

	 	 
	Signature	 
	My Commission Expires:	(Space above for official notarial seal)

  

    	Assignment and Assumption (L’Auberge de Sedona LLC) – Signature 2

    	 

     

EXHIBIT A

 

SCHEDULED ASSUMED LIABILITIES

 

Assignment and Assumption (L’Auberge
de Sedona LLC) – Ex. A

 

    	 

    	 

     

SCHEDULE OF ASSUMED LIABILITIES

 

	1. Advance Deposit Liabilities	 	$	1,954,171	 
	2. Squire Sanders & Dempsey	 	$	54,000	 
	3. Paid Time Off	 	$	111,487	 
	4. Arizona Department of Revenue	 	$	164,877	 
	5. RDS Payment	 	$	104,840	 

 

    	 

    	 

     

 

 

 

EXHIBIT 8(h)

 

ASSIGNMENT AND ASSUMPTION AGREEMENT

 

(Orchards Inn & Restaurant LLC Assets
and Liabilities)

 

THIS ASSIGNMENT AND
ASSUMPTION AGREEMENT (“Assignment”) is made and entered into as of this _____ day of ______________, 2013 by
and between Orchards Inn & Restaurant LLC, an Arizona limited liability company
(“Assignor”), and Orchards Newco, LLC, a Delaware limited liability
company (“Assignee”).

 

WHEREAS, the Assignor
and Assignee are parties to that certain “Sedona Agreement” dated March 29, 2013 whereby the Assignor, among
others, has agreed to, among other things, convey and transfer to Assignee certain assets and interests owned, held and/or controlled
by the Assignor, as identified in the Sedona Agreement and subject to the terms and conditions of the Sedona Agreement, for good
and valuable consideration,

 

WHEREAS, Assignor desires
to assign all of its assets and those certain liabilities described on Exhibit A to Assignee, and Assignee desires to accept
and assume such assets and certain liabilities,

 

WHEREAS, the parties
have agreed to execute this Assignment in order to effect such assignment, delegation and assumption on the terms and conditions
set forth herein,

 

NOW, THEREFORE, for
good and valuable consideration, the adequacy and receipt of which are hereby acknowledged, Assignor and Assignee do hereby agree
as follows:

 

	 	1.	General Assignment.

 

Assignor hereby sells,
transfers, assigns, delivers, sets over and conveys to Assignee all right, title and interest of Assignor, in and to all assets,
including without limitation all personal property owned or leased by Assignor now existing or at any time hereafter acquired,
and all right, title and interest in and to the following:

 

a.           to
the extent they may be transferred under applicable law, all licenses, permits and authorizations presently issued in connection
with the operation of all or any part of the Real Property as it is presently being operated including but not limited to all such
permits and licenses;

 

b.           all
warranties and guarantees (if any) issued to Assignor by any manufacturer or contractor in connection with the construction or
installation of equipment included as part of the Real Property;

 

c.           all
claims against contractors and suppliers with respect to work done on or with respect to the Real Property or materials incorporated
into the Real Property;

 

d.           all
contracts in effect as of the date hereof with respect to the Real Property;

 

    	 

    	 

     

e.           all
brands, trade names, trademarks, web sites, telephone numbers and listings, deposits and other general intangibles of or relating
to the Real Property, including, without limitation, Orchards Inn, Orchards Inn of Sedona and Canyon Portal Motel;

 

f.            all
permits, licenses, and approvals applicable to the Real Property or any business conducted thereon or therefrom;

 

g.           all
engineering documents, architectural documents and other plats, plans, specifications, drawings and surveys applicable to the Real
Property;

 

h.           all
refunds of insurance premiums associated with or related to the Real Property;

 

i.            all
returns or refunds of deposits, charges, payments or taxes associated with the Real Property or business conducted thereon by Assignor,
its subsidiaries, affiliates or agents;

 

j.            all
water rights associated with or related to the Real Property;

 

k.          all
legal, equitable and/or administrative claims whatsoever, whether known or unknown, filed or unfiled;

 

l.            all
accounts, cash and cash equivalents; and

 

m.           all
other rights, privileges and appurtenances associated with the Real Property.

 

All of the foregoing
items in this Section are collectively referred to as the “Property Interests”.

 

	 	2.	Acceptance and Assumption.

 

Assignee hereby accepts
the assignment of the Property Interests and assumes the liability and obligations specifically described on Exhibit A attached
hereto (the “Scheduled Assumed Liabilities”), to the extent the same are liabilities or obligations of the Assignor.

 

	 	3.	Further Assurances.

 

The parties shall execute
such further documents and do any and all such further things as may be necessary to implement and carry out the intent of this
Assignment.

 

	 	4.	Successors and Assigns.

 

This Assignment shall
be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.

 

    	2

    	 

     

	 	5.	Governing Law.

 

This Assignment shall
be governed by and construed in accordance with the laws of the State of Arizona.

 

	 	6.	Counterparts.

 

This Assignment may
be executed in any number of counterparts, each of which when so executed shall be deemed to be an original and all of which taken
together shall constitute one and the same agreement.

 

[SIGNATURE ON THE FOLLOWING
PAGE]

 

    	3

    	 

     

IN WITNESS WHEREOF,
the parties have executed this Assignment as of the date first written above.

  

	ASSIGNOR:	 
	 	 
	ORCHARDS INN & RESTAURANT LLC,	 
	an Arizona limited liability company	 
	 	 
	By:	 	 
	 	Albert B. Spector, Jr.	 
	Its:	 	 

 

ACKNOWLEDGMENT

 

	STATE OF ARIZONA	)	 
	 	) ss	 
	COUNTY OF ______________________	)	 

 

On ____________________, before me, ____________________________________,
a Notary Public in and for the State of Arizona, personally appeared ______________________, personally known to me (or proved
to me on the basis of satisfactory evidence) to be the person whose name is subscribed to the within instrument and acknowledged
to me that he/she executed the same in his/her authorized capacity, and that by his/her signature on the instrument the person,
or the entity upon behalf of which _______________________________ acted, executed the instrument.

 

	 	 
	Signature	 
	My Commission Expires:	(Space above for official notarial seal)

  

    	Assignment and Assumption (Orchards Inn & Restaurant LLC) – Sig. 1

    	 

     

	ASSIGNEE:
	 
	ORCHARDS NEWCO, LLC, a Delaware
	limited liability company
	 
	By:	IMH Financial Corporation,	 
	 	a Delaware corporation, Sole Member	 
	 
	 	By:	 	 
	 	Name:	 	 
	 	Its:	 	 

 

ACKNOWLEDGMENT

 

	STATE OF ARIZONA	)	 
	 	) ss	 
	COUNTY OF MARICOPA	)	 
	 	 	 

 

On ____________________, before me, ____________________________________,
a Notary Public in and for the State of Arizona, personally appeared ______________________, personally known to me (or proved
to me on the basis of satisfactory evidence) to be the person whose name is subscribed to the within instrument and acknowledged
to me that he/she executed the same in his/her authorized capacity, and that by his/her signature on the instrument the person,
or the entity upon behalf of which _______________________________ acted, executed the instrument.

 

	 	 
	Signature	 
	My Commission Expires:	(Space above for official notarial seal)

 

 

 

    	Assignment and Assumption (Orchards Inn & Restaurant LLC) – Sig. 2

    	 

     

EXHIBIT A

 

SCHEDULED ASSUMED LIABILITIES

 

 

Assignment and Assumption (Orchards Inn &
Restaurant LLC) – Ex. A

 

    	 

    	 

     

SCHEDULE OF ASSUMED LIABILITIES

 

	1. Advance Deposit Liabilities	 	$	1,954,171	 
	2. Squire Sanders & Dempsey	 	$	54,000	 
	3. Paid Time Off	 	$	111,487	 
	4. Arizona Department of Revenue	 	$	164,877	 
	5. RDS Payment	 	$	104,840	 

 

    	 

    	 

     

 

 

 

EX 8(o)-i

 

MUTUAL RELEASE OF LENDER, BORROWER
AND GUARANTOR

 

(HL Loan)

 

THIS MUTUAL RELEASE
OF LENDER, BORROWER AND GUARANTOR (“Release”) is entered into this _____ day of May, 2013 by and among IMH
SPECIAL ASSET NT 233, LLC, an Arizona limited liability company (“Lender”), HL
LLC, an Arizona limited liability company (“HL Borrower”) and Albert B. Spector, Jr. (“Guarantor,”
together with HL Borrower, the “Borrower Parties”).

 

RECITALS

 

A.           Lender
and Borrower Parties are parties to that certain “Sedona Agreement” dated as of March 29, 2013 (the “Sedona
Agreement”). Capitalized terms used but not defined herein shall have the meanings ascribed to them in the Sedona Agreement.

 

B.           Pursuant
to the Sedona Agreement, Lender and Borrower Parties desire to mutually and fully release, except to the extent set forth in the
Sedona Agreement, each other from any and all liabilities and obligations arising out of or relating to the HL Loan or HL Loan
Documents.

 

AGREEMENT

 

NOW
THEREFORE, for and in consideration of the agreements set forth in the Sedona Agreement and of Ten Dollars ($10.00) and
other good and valuable consideration in hand, the receipt and sufficiency of which are hereby acknowledged, the parties hereto
agree as follows:

 

1.          Release
of Lender. Upon the Closing, and on the condition that the Closing occurs, without limiting any other exculpatory, indemnification,
or other rights, powers, privileges or remedies of the Released Lender Parties (defined below), each of the Borrower Parties (including,
without limitation, Guarantor) (the “Borrower Releasing Parties”), on behalf of themselves and their heirs,
successors and assigns, hereby release and discharge all claims, demands, causes of action, counterclaims, defenses and offsets
against Lender, its current and prior subsidiaries, affiliates, attorneys, directors, officers, shareholders, members, partners,
trusts, employees, agents, advisors, consultants, servicers, lenders, and any other person, corporation or entity that might be
claimed to be liable on its behalf (the “Released Lender Parties”) and do hereby release, acquit and forever
discharge the Released Lender Parties from any and all debts, obligations, promises, agreements, covenants, contracts, controversies,
suits, actions, guaranties, warranties, representations, causes of action, judgments, executions, claims and demands, damages of
any kind, liability and costs of every kind and character in law or in equity, known or unknown, that the Borrower Releasing Parties
have or hereinafter can, shall or may have against the Released Lender Parties for, upon or by reason of any matter, cause, or
thing whatsoever, whether vested or contingent, accrued or unaccrued, suspected or claimed, that any of the Borrower Releasing
Parties have heretofore had and asserted or could have asserted or which it may hereafter have or assert against the Released Lender
Parties for, upon or by reason of any matter, cause, or thing whatsoever (other than fraud), which has occurred or arisen at any
time prior to the Closing, related to, or arising out of any act or omission of any of the Released Lender Parties in connection
with the HL Loan Documents or the HL Loan evidenced and secured thereby or the real and/or personal property constituting collateral
therefor (the “Released Lender Liabilities”). Each Borrower Releasing Party covenants not to sue any of the
Released Lender Parties with respect to the Released Lender Liabilities. Each Borrower Releasing Party represents and warrants
that it has not heretofore assigned or transferred or purported to have assigned or transferred to any person, firm, corporation
or any other entity any of the matters described in the release set forth herein. Each Borrower Releasing Party acknowledges that
there is a risk that, subsequent to the release contemplated hereby, the Borrower Releasing Party may discover, incur, or suffer
claims that were unknown to that Borrower Releasing Party or unanticipated at the time of signing this Release or the Closing,
including, without limitation, unknown or unanticipated claims that, had they been known, may have materially affected the decision
to provide the release contemplated hereby. Nothing in this Release is intended to limit Borrower Releasing Parties’ rights
to pursue any remedies available under the Sedona Agreement or under any document or agreement entered into or delivered pursuant
to the Sedona Agreement for any obligation or liability of the Lender which, by its terms, survives the Closing or the earlier
termination of the Sedona Agreement.

 

    	 

    	 

     

2.          Release
of Borrower Parties.      Upon the Closing, and on the condition that the Closing occurs, Lender,
on behalf of itself and its heirs, successors, assigns and affiliates, hereby releases and discharges all claims, demands, causes
of action, liabilities, counterclaims, defenses and offsets against Borrower Parties, but not Jacob Gechman (“Gechman”),
and their current and prior subsidiaries, affiliates, advisors, consultants, attorneys, employees, agents, directors, officers,
shareholders, members, partners, trusts, and any other person, corporation or entity that might be claimed to be liable on its
behalf, other than Gechman (collectively, the “Released Borrower Parties”) and does hereby release, acquit and
forever discharge the Released Borrower Parties from any and all debts, obligations, promises, agreements, covenants, contracts,
controversies, suits, actions, guaranties, warranties, representations, causes of action, judgments, executions, claims and demands,
damages of any kind, liability and costs of every kind and character in law or in equity, known or unknown, that Lender has or
hereinafter can, shall or may have against the Released Borrower Parties for, upon or by reason of any matter, cause, or thing
whatsoever, whether vested or contingent, accrued or unaccrued, suspected or claimed, that Lender may have heretofore had and asserted
or could have asserted or which they it may hereafter have or assert against the Released Borrower Parties for, upon or by reason
of any matter, cause, or thing whatsoever (other than fraud), which has occurred or arisen at any time prior to the Closing, arising
out of or relating to the HL Loan and/or HL Loan Documents or the real and personal property constituting collateral therefor (collectively,
the “Released Borrower Liabilities”). Lender covenants not to sue any of the Released Borrower Parties with
respect to the Released Borrower Liabilities. Lender represents and warrants that it holds all applicable rights necessary to validly
release the matters set forth herein. Lender acknowledges that there is a risk that, subsequent to the release contemplated hereby,
Lender may discover, incur, or suffer claims that were unknown to the Lender or unanticipated at the time of signing of this Release
or the Closing, including without limitation, unknown or unanticipated claims that, had they been known, may have materially affected
the decision to provide the release contemplated hereby. Nothing in this Release is intended to limit Lender’s rights to
(A) pursue the post-Closing remedies described in the Sedona Agreement, any remedies available under the Sedona Agreement or under
any document or agreement entered into or delivered pursuant to the Sedona Agreement for a failure to perform thereunder, or for
any obligation or liability which, by its terms, survives the Closing or the earlier termination of the Sedona Agreement, or (B)
pursue against Gechman and/or any individual, corporation, association, partnership, limited liability company, trust, joint venture,
business trust or unincorporated organization or other entity or organization that might be claimed to be liable on Gechman’s
behalf, any claim, whether relating to the HL Loan and/or the HL Loan Documents or otherwise.

 

    	2

    	 

     

3.          Successors
and Assigns.  It is understood and agreed that this Release shall be binding upon and
shall inure to the benefit of the parties hereto and their respective heirs, representatives, successors and assigns.

 

4.          Construction.     If
any term, covenant, or condition of this Release is held to be invalid or unenforceable in any
respect, such invalidity or unenforceability shall not affect any other provision hereof, and this Release
shall be construed as if such invalid or unenforceable provision had never been contained herein.

 

5.          Interpretation.
 Should any provision of this Release require interpretation in any judicial, administrative
or other proceeding or circumstance, it is agreed that the court, administrative body or other entity interpreting or construing
the same shall not apply a presumption that the terms hereof shall be more strictly construed against one party by reason of the
rule of construction that a document is to be construed more strictly against the party who prepared the same, it being agreed
that the parties hereto have fully participated in the preparation of this Release.

 

6.          Counterparts.
This Release may be executed in counterparts, each of which when so executed shall be deemed to be an original and all of which
taken together shall constitute one and the same agreement.

 

7.          Entire
Transaction. This Release is executed and delivered in connection with the Sedona Agreement and
the other documents, releases and agreements entered into in connection therewith. To that end, all of such documents shall be
construed together and as containing mutually dependent covenants and terms.

 

8.          Governing
Law. This Release shall be governed by construed and enforced in accordance with and subject to the laws of the State
of Arizona.

 

9.          Survival.
This Release shall survive the Closing and shall not terminate.

 

    	3

    	 

     

IN WITNESS WHEREOF,
the parties hereto have executed this Release as of the date and year first written above.

 

	 	LENDER
	 	 
	 	IMH SPECIAL ASSET NT 233, LLC,
	 	an Arizona limited liability company
	 	 
	 	By:	IMH Financial Corporation, a Delaware corporation
	 	 
	 	 	By:	 
	 	 	Name: 	 
	 	 	Its: 	 
	 	 
	 	BORROWER PARTIES
	 	 
	 	“HL BORROWER”
	 	 
	 	HL LLC, an Arizona limited liability company
	 	 
	 	By:	 
	 	Name: 	 
	 	Its: 	 

 

	 	“GUARANTOR”
	 	 
	 	 
	 	Albert B. Spector Jr., an individual

 

HL Release of Lender, Borrower and Guarantor
– Signature Page

 

    	 

    	 

     

 

 

 

EX 8(o)-ii

 

MUTUAL RELEASE OF LENDER, BORROWER
AND GUARANTOR

 

(LA Loan)

 

THIS MUTUAL RELEASE
OF LENDER, BORROWER AND GUARANTOR (“Release”) is entered into this _____ day of May, 2013 by and among IMH
SPECIAL ASSET NT 232, LLC, an Arizona limited liability company (“Lender”), L’AUBERGE
ORCHARDS LLC, an Arizona limited liability company (“LA Borrower”) and Albert B. Spector, Jr. (“Guarantor,”
together with LA Borrower, the “Borrower Parties”).

 

RECITALS

 

A.           Lender
and Borrower Parties are parties to that certain “Sedona Agreement” dated as of March 29, 2013 (the “Sedona
Agreement”). Capitalized terms used but not defined herein shall have the meanings ascribed to them in the Sedona Agreement.

 

B.           Pursuant
to the Sedona Agreement, Lender and Borrower Parties desire to mutually and fully release, except to the extent set forth in the
Sedona Agreement, each other from any and all liabilities and obligations arising out of or relating to the LA Loan or LA Loan
Documents.

 

AGREEMENT

 

NOW
THEREFORE, for and in consideration of the agreements set forth in the Sedona Agreement and of Ten Dollars ($10.00) and
other good and valuable consideration in hand, the receipt and sufficiency of which are hereby acknowledged, the parties hereto
agree as follows:

 

1.          Release
of Lender. Upon the Closing, and on the condition that the Closing occurs, without limiting any other exculpatory, indemnification,
or other rights, powers, privileges or remedies of the Released Lender Parties (defined below), each of the Borrower Parties (including,
without limitation, Guarantor) (the “Borrower Releasing Parties”), on behalf of themselves and their heirs,
successors and assigns, hereby release and discharge all claims, demands, causes of action, counterclaims, defenses and offsets
against Lender, its current and prior subsidiaries, affiliates, attorneys, directors, officers, shareholders, members, partners,
trusts, employees, agents, advisors, consultants, servicers, lenders, and any other person, corporation or entity that might be
claimed to be liable on its behalf (the “Released Lender Parties”) and do hereby release, acquit and forever
discharge the Released Lender Parties from any and all debts, obligations, promises, agreements, covenants, contracts, controversies,
suits, actions, guaranties, warranties, representations, causes of action, judgments, executions, claims and demands, damages of
any kind, liability and costs of every kind and character in law or in equity, known or unknown, that the Borrower Releasing Parties
have or hereinafter can, shall or may have against the Released Lender Parties for, upon or by reason of any matter, cause, or
thing whatsoever, whether vested or contingent, accrued or unaccrued, suspected or claimed, that any of the Borrower Releasing
Parties have heretofore had and asserted or could have asserted or which it may hereafter have or assert against the Released Lender
Parties for, upon or by reason of any matter, cause, or thing whatsoever (other than fraud), which has occurred or arisen at any
time prior to the Closing, related to, or arising out of any act or omission of any of the Released Lender Parties in connection
with the LA Loan Documents or the LA Loan evidenced and secured thereby or the real and/or personal property constituting collateral
therefor (the “Released Lender Liabilities”). Each Borrower Releasing Party covenants not to sue any of the
Released Lender Parties with respect to the Released Lender Liabilities. Each Borrower Releasing Party represents and warrants
that it has not heretofore assigned or transferred or purported to have assigned or transferred to any person, firm, corporation
or any other entity any of the matters described in the release set forth herein. Each Borrower Releasing Party acknowledges that
there is a risk that, subsequent to the release contemplated hereby, the Borrower Releasing Party may discover, incur, or suffer
claims that were unknown to that Borrower Releasing Party or unanticipated at the time of signing this Release or the Closing,
including, without limitation, unknown or unanticipated claims that, had they been known, may have materially affected the decision
to provide the release contemplated hereby. Nothing in this Release is intended to limit Borrower Releasing Parties’ rights
to pursue any remedies available under the Sedona Agreement or under any document or agreement entered into or delivered pursuant
to the Sedona Agreement for any obligation or liability of the Lender which, by its terms, survives the Closing or the earlier
termination of the Sedona Agreement.

 

    	 

    	 

     

2.          Release
of Borrower Parties.     Upon the Closing, and on the condition that the Closing occurs, Lender, on
behalf of itself and its heirs, successors, assigns and affiliates, hereby releases and discharges all claims, demands, causes
of action, liabilities, counterclaims, defenses and offsets against Borrower Parties, but not Jacob Gechman (“Gechman”),
and their current and prior subsidiaries, affiliates, advisors, consultants, attorneys, employees, agents, directors, officers,
shareholders, members, partners, trusts, and any other person, corporation or entity that might be claimed to be liable on its
behalf, other than Gechman (collectively, the “Released Borrower Parties”) and does hereby release, acquit and
forever discharge the Released Borrower Parties from any and all debts, obligations, promises, agreements, covenants, contracts,
controversies, suits, actions, guaranties, warranties, representations, causes of action, judgments, executions, claims and demands,
damages of any kind, liability and costs of every kind and character in law or in equity, known or unknown, that Lender has or
hereinafter can, shall or may have against the Released Borrower Parties for, upon or by reason of any matter, cause, or thing
whatsoever, whether vested or contingent, accrued or unaccrued, suspected or claimed, that Lender may have heretofore had and asserted
or could have asserted or which it may hereafter have or assert against the Released Borrower Parties for, upon or by reason of
any matter, cause, or thing whatsoever (other than fraud), which has occurred or arisen at any time prior to the Closing, arising
out of or relating to the LA Loan and/or LA Loan Documents (collectively, the “Released Borrower Liabilities”).
Lender covenants not to sue any of the Released Borrower Parties with respect to the Released Borrower Liabilities. Lender represents
and warrants that it holds all applicable rights necessary to validly release the matters set forth herein. Lender acknowledges
that there is a risk that, subsequent to the release contemplated hereby, Lender may discover, incur, or suffer claims that were
unknown to the Lender or unanticipated at the time of signing of this Release or the Closing, including without limitation, unknown
or unanticipated claims that, had they been known, may have materially affected the decision to provide the release contemplated
hereby. Nothing in this Release is intended to limit Lender’s rights to (A) pursue the post-Closing remedies described in
the Sedona Agreement, any remedies available under the Sedona Agreement or under any document or agreement entered into or delivered
pursuant to the Sedona Agreement for a failure to perform thereunder, or for any obligation or liability which, by its terms, survives
the Closing or the earlier termination of the Sedona Agreement, or (B) pursue against Gechman and/or any individual, corporation,
association, partnership, limited liability company, trust, joint venture, business trust or unincorporated organization or other
entity or organization that might be claimed to be liable on Gechman’s behalf, any claim, whether relating to the LA Loan
and/or the LA Documents or otherwise.

 

    	 

    	 

     

3.          Successors
and Assigns. It is understood and agreed that this Release shall be binding upon and shall
inure to the benefit of the parties hereto and their respective heirs, representatives, successors and assigns.

 

4.          Construction.    If
any term, covenant, or condition of this Release is held to be invalid or unenforceable in any
respect, such invalidity or unenforceability shall not affect any other provision hereof, and this Release
shall be construed as if such invalid or unenforceable provision had never been contained herein.

 

5.          Interpretation.
Should any provision of this Release require interpretation in any judicial, administrative or
other proceeding or circumstance, it is agreed that the court, administrative body or other entity interpreting or construing the
same shall not apply a presumption that the terms hereof shall be more strictly construed against one party by reason of the rule
of construction that a document is to be construed more strictly against the party who prepared the same, it being agreed that
the parties hereto have fully participated in the preparation of this Release.

 

6.          Counterparts.
This Release may be executed in counterparts, each of which when so executed shall be deemed to be an original and all of which
taken together shall constitute one and the same agreement.

 

7.          Entire
Transaction. This Release is executed and delivered in connection with the Sedona Agreement and
the other documents, releases and agreements entered into in connection therewith. To that end, all of such documents shall be
construed together and as containing mutually dependent covenants and terms.

 

8.          Governing
Law. This Release shall be governed by construed and enforced in accordance with and subject to the laws of the State
of Arizona.

 

9.          Survival.
This Release shall survive the Closing and shall not terminate.

 

    	 

    	 

     

IN WITNESS WHEREOF,
the parties hereto have executed this Release as of the date and year first written above.

 

 

	 	LENDER
	 	 
	 	IMH SPECIAL ASSET NT 232, LLC,
	 	an Arizona limited liability company
	 	 
	 	By:	IMH Financial Corporation, a Delaware corporation
	 	 
	 	 	By:	 
	 	 	Name:	 
	 	 	Its: 	 
	 	 
	 	BORROWER PARTIES
	 	 
	 	“LA BORROWER”
	 	 
	 	L’AUBERGE ORCHARDS LLC, an Arizona limited liability company
	 	 
	 	By:	 
	 	Name: 	 
	 	Its:	 

 

 

	 	“GUARANTOR”
	 	 
	 	_________________________________________
	 	Albert B. Spector Jr., an individual

 

LA Release of Lender, Borrower and Guarantor-
Signature Page

 

    	 

    	 

     

 Exhibit 8(p)

 

QUITCLAIM ASSIGNMENT OF RIGHTS

 

(Noble House Letter)

 

THIS QUITCLAIM ASSIGNMENT
OF RIGHTS (“Quitclaim”) is made as of this _____ day of _____, 2013 (the “Effective Date”)
by L’Auberge Orchards, LLC, an Arizona limited liability company (“Assignor”).

 

A.           Assignor
and Orchards Newco, LLC, a Delaware limited liability company (“Assignee”) are parties to that certain “Sedona
Agreement” dated March 29, 2013 whereby the Assignor, among others, has agreed to, among other things, convey and transfer
to Assignee certain assets and interests owned, held and/or controlled by the Assignor, as identified in the Sedona Agreement and
subject to the terms and conditions of the Sedona Agreement, for good and valuable consideration.

 

B.           Noble
House Hotels & Resorts, Ltd., a Texas limited partnership (“Buyer”) and Assignor, as seller, are parties
to that certain letter of intent dated October 1, 2012 (the “Noble House Letter”), a copy of which is attached
hereto as Exhibit A, regarding a proposal to enter into a Purchase and Sale Agreement to purchase the real property and
improvements, personal property, and the business enterprise commonly known as the L’Auberge Hotel and Resort, located at
301 L’Auberge Lane, Sedona, AZ (collectively, the “Resort”) and the real property and improvements, the
personal property, and the business enterprise commonly known as the Orchards Inn located at 254 N. Highway 89A, Sedona, AZ (collectively,
the “Motel”).

 

C.           Assignor
has not executed the Noble House Letter, and by its terms, the Noble House Letter expired automatically on November 14, 2012.

 

D.           Notwithstanding
the foregoing, Assignor desires to quitclaim its rights, if any, in, to and under the Noble House Letter to Assignee.

 

NOW, THEREFORE, for
good and valuable consideration, receipt of which is hereby acknowledged, Assignor hereby remises, releases and forever quitclaims
to Assignee any and all of Assignor’s right, title and interest in, to and under the Noble House Letter.

 

IN WITNESS WHEREOF, the
undersigned has executed this Quitclaim, effective as of the Effective Date.

 

	 	L’AUBERGE ORCHARDS, LLC,
	 	an Arizona limited liability company
	 	 
	 	By:	 
	 	 	 
	 	Name: 	 
	 	 	 
	 	Its:	 

  

    	 

    	 

     

EXHIBIT A

 

Copy of Noble House Letter

 

 

SEE EXHIBIT 39

    	 

    	 

     

 

 

 

EXHIBIT 8(q)-i

 

REQUEST FOR ASSIGNMENT
OF SURFACE WATER APPLICATION AND CLAIM AND

ASSIGNMENT AND
REISSUANCE OF PERMITS (LAMERRA) 

 

 

    	 

    	 

       

Arizona Department of Water Resources

Permitting Unit

3550 North Central Avenue, Phoenix, Arizona
85012-2105

Telephone (602) 771-8621

Fax (602) 771-8689

 

REQUEST FOR

ASSIGNMENT OF SURFACE
WATER APPLICATIONS AND CLAIMS AND

ASSIGNMENT AND REISSUANCE
OF PERMITS AND CERTIFICATED RIGHTS

 

	1.	Registry number of right or claim being assigned	See Attachment
	 	 	(Use attachment for 2 or more filings)
	2.	Request for:  (check one box only)	 

 

	 	x      Total (complete) Assignment	 ̈       Partial Assignment 

 

	3.	If the request is for a partial assignment, the following information must be provided for use(s), quantity(s), and location(s) of the portion being assigned:

 

Use ______________________________________________ Quantity
____________________________

 

____1⁄4        1⁄4
       1⁄4, Section      , Township       
N/S, Range        E/W; Parcel I.D. No. ________________

 

Use ______________________________________________ Quantity
____________________________

 

____1⁄4        1⁄4
       1⁄4, Section      , Township       
N/S, Range        E/W; Parcel I.D. No. ________________

 

	4.	SELLER(S)/ASSIGNORS	 	BUYER(S)/ASSIGNEES

 

	Name	HL  LLC	 	Name	HL Newco, LLC
	Address	6900 E. Camelback Rd., Suite 830	 	Address	c/o IMH Financial Corporation

 

	 	 	 	7001 N. Scottsdale Road, Suite 2050
	 	Scottsdale, AZ  85351	 	Scottsdale, AZ  85253

 

	Phone No. (480) 	941-0221, Ext. 314	 	Phone No. (480) 	840-8400

 

	 	 	 
	Signature	 	Signature
	 	 	 
	(Please print or type name of assignor or 

representative)	 	(Please print or type name of assignee or 

representative)
	 	 	 
	Date Signed	 	Date Signed

   

Current mailing addresses and telephone
numbers must be included.

 

ASSIGNMENTS WILL NOT BE PROCESSED WITHOUT
FEE(S), PROOF OF OWNERSHIP (MAY INCLUDE CHAIN OF TITLE OF OWNERSHIP), ASSESSORS MAP OR ALLOTMENT MAP.

 

(Page 1 of 3)

 

 

    	 

    	 

     

 

INSTRUCTIONS FOR COMPLETING THE REQUEST
FOR ASSIGNMENT

 

The Arizona Department of Water Resources
(Department) will process requests for assignment of surface water applications, permits, certificates, or claims listed on the
official form or its attachment only. An assignment conveys the ownership of the surface water filing from one entity to another
and in the case of permits and certificates results in re-issuance of the permit or certificate. For a surface water filing where
the water is being put to beneficial use on public land, the completion of a request for assignment shall not be construed as a
determination by the Department of whether it is the landowner, a lessee or a permittee that is entitled to hold a water right
on the public land.

 

	 	1.	Fill in the registry number of the right or claim being assigned. If more than one right or claim is being assigned with this request, the attachment must be utilized. Write “see attachment” in this space to indicate that more than one right or claim is being assigned. Photocopy the attachment sheet as needed.

 

	 	2.	Indicate whether this request for assignment is for the entire right or claim or for a portion of a right or claim. If Total Assignment is indicated, the current holder will retain no portion of the right or claim following completion of the assignment. Partial Assignment would be selected if the current holder intends to retain some portion of the right.

 

	 	NOTE:	A single Request for Assignment form cannot be utilized if a right or claim is being assigned (either in total or partial) to multiple parties. In this case, a separate request for assignment must be completed for each buyer/assignee. The total quantity of water being assigned to all parties cannot exceed the quantity of water listed in the original claim or right. Photocopy additional pages if needed.

 

	 	3.	This portion of the request for assignment must be completed for all partial assignments. Using the existing claim or right as a guide, complete the blanks to indicate the type of use being assigned, the quantity of use being assigned that is associated with that particular use, and the legal location of the place of use. If there are more than three uses associated with a right or claim, please provide the additional information in the same form either on the attachment or on a separate sheet of paper.

 

	 	4.	Requests for assignments that are not signed by both the buyer and seller will not be processed unless circumstances warrant. If the seller is not the current holder of the right or claim, a chain of title of ownership must be provided. Please indicate if property was in lieu of foreclosure and provide documentation.

 

5.REQUIRED ATTACHMENTS:

 

	 	 ̈	Fling Fees for a REQUEST FOR ASSIGNMENT OF SURFACE WATER APPLICATIONS AND CLAIMS AND ASSIGNMENT AND REISSUANCE OF PERMITS AND CERTIFICATED RIGHTS is $75.00 for each application, permit, certificate or claim being assigned.   Payment may be made by cash, check, or credit card (if you wish to pay by credit card, please contact the Permitting Unit at 602-771-8621).  Checks should be made payable to the Arizona Department of Water Resources.  Failure to enclose the filing fee will cause the filing to be returned.  Fees for REQUEST FOR ASSIGNMENT OF SURFACE WATER APPLICATIONS AND CLAIMS AND ASSIGNMENT AND REISSUANCE OF PERMITS AND CERTIFICATED RIGHTS are authorized by Arizona Administrative Code (A.A.C.) R12-15-104.

 

	 	 ̈	Copy of recorded deed showing land ownership in the name of the buyer. If the seller is not the current holder of the right or claim, a chain of title of ownership must be provided. If land is owned by other than buyer, a copy of all pertinent leases or grazing permits must be included.

 

	 	 ̈	Copy of assessors map or allotment map with place(s) of use identified. 

 

For partial assignments more detailed
land ownership information may be requested.

 

(Page 2 of 3)

 

    	 

    	 

      

REQUEST FOR ASSIGNMENT ATTACHMENT

 

	Registry number of right or claim 	36-18397.0002	x        Entire right or claim	 ̈       Partial

 

Use __________ Quantity ______ 1⁄4       
1⁄4          1⁄4_____, Section     
, Township        N/S, Range        E/W;
Parcel I.D. No. _____________

 

Use __________ Quantity ______ 1⁄4       
1⁄4          1⁄4_____, Section     
, Township        N/S, Range        E/W;
Parcel I.D. No. _____________

 

Use __________ Quantity ______ 1⁄4       
1⁄4          1⁄4_____, Section     
, Township        N/S, Range        E/W;
Parcel I.D. No. _____________

 

 

 

 

	Registry number of right or claim 	36-18398.0002	x        Entire right or claim	 ̈       Partial

 

Use __________ Quantity ______ 1⁄4       
1⁄4          1⁄4_____, Section     
, Township        N/S, Range        E/W;
Parcel I.D. No. _____________

 

Use __________ Quantity ______ 1⁄4       
1⁄4          1⁄4_____, Section     
, Township        N/S, Range        E/W;
Parcel I.D. No. _____________

 

Use __________ Quantity ______ 1⁄4       
1⁄4          1⁄4_____, Section     
, Township        N/S, Range        E/W;
Parcel I.D. No. _____________

 

 

 

 

	Registry number of right or claim 	36-18399.0002	x        Entire right or claim	 ̈       Partial

 

Use __________ Quantity ______ 1⁄4       
1⁄4          1⁄4_____, Section     
, Township        N/S, Range        E/W;
Parcel I.D. No. _____________

 

Use __________ Quantity ______ 1⁄4       
1⁄4          1⁄4_____, Section     
, Township        N/S, Range        E/W;
Parcel I.D. No. _____________

 

Use __________ Quantity ______ 1⁄4       
1⁄4          1⁄4_____, Section     
, Township        N/S, Range        E/W;
Parcel I.D. No. _____________

 

 (Page
3 of 3)

 

 

    	 

    	 

     

 

 

 

 

 

 

EXHIBIT 8(q) -ii

 

REQUEST
FOR ASSIGNMENT OF SURFACE WATER APPLICATION AND CLAIM

AND ASSIGNMENT
AND REISSUANCE OF PERMITS (L'AUBERGE)

 

 

    	 

    	 

     

 

  

Arizona Department of Water Resources

Permitting Unit

3550 North Central Avenue, Phoenix, Arizona
85012-2105

Telephone (602) 771-8621

Fax (602) 771-8689

 

REQUEST FOR

ASSIGNMENT OF SURFACE
WATER APPLICATIONS AND CLAIMS AND

ASSIGNMENT AND
REISSUANCE OF PERMITS AND CERTIFICATED RIGHTS

 

	1.	Registry number of right or claim being assigned	See Attachment
	 	 	(Use attachment for 2 or more filings)
	2.	Request for:  (check one box only)	 

 

	 	x      Total (complete) Assignment	 ̈       Partial Assignment 

 

	3.	If the request is for a partial assignment, the following information must be provided for use(s), quantity(s), and location(s) of the portion being assigned:

 

Use ______________________________________________ Quantity
____________________________

 

____1⁄4        1⁄4
       1⁄4, Section__, Township        N/S, Range
       E/W; Parcel I.D. No. ________________

 

Use ______________________________________________ Quantity
____________________________

 

____1⁄4        1⁄4
       1⁄4, Section      , Township       
N/S, Range        E/W; Parcel I.D. No. _______________

 

	4.	SELLER(S)/ASSIGNORS	 	BUYER(S)/ASSIGNEES

 

	Name	L’Auberge Orchards, LLC	 	Name	L’Auberge Newco, LLC
	Address	6900 E. Camelback Rd., Suite 830	 	Address	c/o IMH Financial Corporation

 

	 	 	 	7001 N. Scottsdale Road, Suite 2050
	 	Scottsdale, AZ  85351	 	Scottsdale, AZ  85253

 

	Phone No. (480) 	941-0221, Ext. 314	 	Phone No. (480) 	840-8400

 

	 	 	 
	Signature	 	Signature
	 	 	 
	(Please print or type name of assignor or 

representative)	 	(Please print or type name of assignee or 

representative)
	 	 	 
	Date Signed	 	Date Signed

   

Current mailing addresses and telephone
numbers must be included.

 

ASSIGNMENTS WILL NOT BE PROCESSED WITHOUT
FEE(S), PROOF OF OWNERSHIP (MAY INCLUDE CHAIN OF TITLE OF OWNERSHIP), ASSESSORS MAP OR ALLOTMENT MAP.

 

(Page 1 of 3)

 

 

    	 

    	 

     

 

INSTRUCTIONS FOR COMPLETING THE REQUEST
FOR ASSIGNMENT

 

The Arizona Department of Water Resources
(Department) will process requests for assignment of surface water applications, permits, certificates, or claims listed on the
official form or its attachment only. An assignment conveys the ownership of the surface water filing from one entity to another
and in the case of permits and certificates results in re-issuance of the permit or certificate. For a surface water filing where
the water is being put to beneficial use on public land, the completion of a request for assignment shall not be construed as a
determination by the Department of whether it is the landowner, a lessee or a permittee that is entitled to hold a water right
on the public land.

 

	 	1.	Fill in the registry number of the right or claim being assigned. If more than one right or claim is being assigned with this request, the attachment must be utilized. Write “see attachment” in this space to indicate that more than one right or claim is being assigned. Photocopy the attachment sheet as needed.

 

	 	2.	Indicate whether this request for assignment is for the entire right or claim or for a portion of a right or claim. If Total Assignment is indicated, the current holder will retain no portion of the right or claim following completion of the assignment. Partial Assignment would be selected if the current holder intends to retain some portion of the right.

 

	 	NOTE:	A single Request for Assignment form cannot be utilized if a right or claim is being assigned (either in total or partial) to multiple parties. In this case, a separate request for assignment must be completed for each buyer/assignee. The total quantity of water being assigned to all parties cannot exceed the quantity of water listed in the original claim or right. Photocopy additional pages if needed.

 

	 	3.	This portion of the request for assignment must be completed for all partial assignments. Using the existing claim or right as a guide, complete the blanks to indicate the type of use being assigned, the quantity of use being assigned that is associated with that particular use, and the legal location of the place of use. If there are more than three uses associated with a right or claim, please provide the additional information in the same form either on the attachment or on a separate sheet of paper.

 

	 	4.	Requests for assignments that are not signed by both the buyer and seller will not be processed unless circumstances warrant. If the seller is not the current holder of the right or claim, a chain of title of ownership must be provided. Please indicate if property was in lieu of foreclosure and provide documentation.

 

	 	5.	REQUIRED ATTACHMENTS:

 

	 	 ̈	Fling Fees for a REQUEST FOR ASSIGNMENT OF SURFACE WATER APPLICATIONS AND CLAIMS AND ASSIGNMENT AND REISSUANCE OF PERMITS AND CERTIFICATED RIGHTS is $75.00 for each application, permit, certificate or claim being assigned.   Payment may be made by cash, check, or credit card (if you wish to pay by credit card, please contact the Permitting Unit at 602-771-8621).  Checks should be made payable to the Arizona Department of Water Resources.  Failure to enclose the filing fee will cause the filing to be returned.  Fees for REQUEST FOR ASSIGNMENT OF SURFACE WATER APPLICATIONS AND CLAIMS AND ASSIGNMENT AND REISSUANCE OF PERMITS AND CERTIFICATED RIGHTS are authorized by Arizona Administrative Code (A.A.C.) R12-15-104.

 

	 	 ̈	Copy of recorded deed showing land ownership in the name of the buyer. If the seller is not the current holder of the right or claim, a chain of title of ownership must be provided. If land is owned by other than buyer, a copy of all pertinent leases or grazing permits must be included.

 

	 	 ̈	Copy of assessors map or allotment map with place(s) of use identified. 

 

For partial assignments more detailed
land ownership information may be requested.

 

(Page 2 of 3)

 

    	 

    	 

      

REQUEST FOR ASSIGNMENT ATTACHMENT

 

	Registry number of right or claim 	36-69321.0001	x        Entire right or claim	 ̈       Partial

 

Use __________ Quantity ______ 1⁄4       
1⁄4          1⁄4_____, Section     
, Township        N/S, Range        E/W;
Parcel I.D. No. _____________

 

Use __________ Quantity ______ 1⁄4       
1⁄4          1⁄4_____, Section     
, Township        N/S, Range        E/W;
Parcel I.D. No. _____________

 

Use __________ Quantity ______ 1⁄4       
1⁄4          1⁄4_____, Section     
, Township        N/S, Range        E/W;
Parcel I.D. No. _____________

 

 

 

 

	Registry number of right or claim 	36-60294.0001	x        Entire right or claim	 ̈       Partial

 

Use __________ Quantity ______ 1⁄4       
1⁄4          1⁄4_____, Section     
, Township        N/S, Range        E/W;
Parcel I.D. No. _____________

 

Use __________ Quantity ______ 1⁄4       
1⁄4          1⁄4_____, Section     
, Township        N/S, Range        E/W;
Parcel I.D. No. _____________

 

Use __________ Quantity ______ 1⁄4       
1⁄4          1⁄4_____, Section     
, Township        N/S, Range        E/W;
Parcel I.D. No. _____________

 

 

 

 

	Registry number of right or claim 	 	£        Entire right or claim	 ̈       Partial

 

Use __________ Quantity ______ 1⁄4       
1⁄4          1⁄4_____, Section     
, Township        N/S, Range        E/W;
Parcel I.D. No. _____________

 

Use __________ Quantity ______ 1⁄4       
1⁄4          1⁄4_____, Section     
, Township        N/S, Range        E/W;
Parcel I.D. No. _____________

 

Use __________ Quantity ______ 1⁄4       
1⁄4          1⁄4_____, Section     
, Township        N/S, Range        E/W;
Parcel I.D. No. _____________

 

 (Page
3 of 3)

 

 

    	 

    	 

     

 

  

EXHIBIT 8(q)-iii

 

REQUEST FOR ASSIGNMENT
OF SURFACE WATER APPLICATION AND CLAIM

AND ASSIGNMENT
AND REISSUANCE OF PERMITS (ORCHARDS)

 

    	 

    	 

     

 

 

  

Arizona Department of Water Resources

Permitting Unit

3550 North Central Avenue, Phoenix, Arizona
85012-2105

Telephone (602) 771-8621

Fax (602) 771-8689

 

REQUEST FOR

ASSIGNMENT OF SURFACE
WATER APPLICATIONS AND CLAIMS AND

ASSIGNMENT AND REISSUANCE
OF PERMITS AND CERTIFICATED RIGHTS

 

	1.	Registry number of right or claim being assigned	See Attachment
	 	 	(Use attachment for 2 or more filings)
	2.	Request for:  (check one box only)	 

 

	 	x      Total (complete) Assignment	 ̈       Partial Assignment 

 

	3.	If the request is for a partial assignment, the following information must be provided for use(s), quantity(s), and location(s) of the portion being assigned:

 

Use ______________________________________________ Quantity
_________________________

 

____1⁄4        1⁄4
       1⁄4, Section__, Township        N/S, Range
       E/W; Parcel I.D. No. _________________

 

Use ______________________________________________ Quantity
_________________________

 

____1⁄4        1⁄4
       1⁄4, Section      , Township       
N/S, Range        E/W; Parcel I.D. No. _______________

 

	4.	SELLER(S)/ASSIGNORS	 	BUYER(S)/ASSIGNEES

 

	Name	L’Auberge Orchards, LLC	 	Name	Orchards Newco, LLC
	Address	6900 E. Camelback Rd., Suite 830	 	Address	c/o IMH Financial Corporation

 

	 	 	 	7001 N. Scottsdale Road, Suite 2050
	 	Scottsdale, AZ  85351	 	Scottsdale, AZ  85253

 

	Phone No. (480) 	941-0221, Ext. 314	 	Phone No. (480) 	840-8400

 

	 	 	 
	Signature	 	Signature
	 	 	 
	(Please print or type name of assignor or 

representative)	 	(Please print or type name of assignee or 

representative)
	 	 	 
	Date Signed	 	Date Signed

   

Current mailing addresses and telephone
numbers must be included.

 

ASSIGNMENTS WILL NOT BE PROCESSED WITHOUT
FEE(S), PROOF OF OWNERSHIP (MAY INCLUDE CHAIN OF TITLE OF OWNERSHIP), ASSESSORS MAP OR ALLOTMENT MAP.

 

(Page 1 of 3)

 

 

    	 

    	 

     

 

INSTRUCTIONS FOR COMPLETING THE REQUEST
FOR ASSIGNMENT

 

The Arizona Department of Water Resources
(Department) will process requests for assignment of surface water applications, permits, certificates, or claims listed on the
official form or its attachment only. An assignment conveys the ownership of the surface water filing from one entity to another
and in the case of permits and certificates results in re-issuance of the permit or certificate. For a surface water filing where
the water is being put to beneficial use on public land, the completion of a request for assignment shall not be construed as a
determination by the Department of whether it is the landowner, a lessee or a permittee that is entitled to hold a water right
on the public land.

 

	 	1.	Fill in the registry number of the right or claim being assigned. If more than one right or claim is being assigned with this request, the attachment must be utilized. Write “see attachment” in this space to indicate that more than one right or claim is being assigned. Photocopy the attachment sheet as needed.

 

	 	2.	Indicate whether this request for assignment is for the entire right or claim or for a portion of a right or claim. If Total Assignment is indicated, the current holder will retain no portion of the right or claim following completion of the assignment. Partial Assignment would be selected if the current holder intends to retain some portion of the right.

 

	 	NOTE:	A single Request for Assignment form cannot be utilized if a right or claim is being assigned (either in total or partial) to multiple parties. In this case, a separate request for assignment must be completed for each buyer/assignee. The total quantity of water being assigned to all parties cannot exceed the quantity of water listed in the original claim or right. Photocopy additional pages if needed.

 

	 	3.	This portion of the request for assignment must be completed for all partial assignments. Using the existing claim or right as a guide, complete the blanks to indicate the type of use being assigned, the quantity of use being assigned that is associated with that particular use, and the legal location of the place of use. If there are more than three uses associated with a right or claim, please provide the additional information in the same form either on the attachment or on a separate sheet of paper.

 

	 	4.	Requests for assignments that are not signed by both the buyer and seller will not be processed unless circumstances warrant. If the seller is not the current holder of the right or claim, a chain of title of ownership must be provided. Please indicate if property was in lieu of foreclosure and provide documentation.

 

	 	5.	REQUIRED ATTACHMENTS:

 

	 	 ̈	Fling Fees for a REQUEST FOR ASSIGNMENT OF SURFACE WATER APPLICATIONS AND CLAIMS AND ASSIGNMENT AND REISSUANCE OF PERMITS AND CERTIFICATED RIGHTS is $75.00 for each application, permit, certificate or claim being assigned.   Payment may be made by cash, check, or credit card (if you wish to pay by credit card, please contact the Permitting Unit at 602-771-8621).  Checks should be made payable to the Arizona Department of Water Resources.  Failure to enclose the filing fee will cause the filing to be returned.  Fees for REQUEST FOR ASSIGNMENT OF SURFACE WATER APPLICATIONS AND CLAIMS AND ASSIGNMENT AND REISSUANCE OF PERMITS AND CERTIFICATED RIGHTS are authorized by Arizona Administrative Code (A.A.C.) R12-15-104.

 

	 	 ̈	Copy of recorded deed showing land ownership in the name of the buyer. If the seller is not the current holder of the right or claim, a chain of title of ownership must be provided. If land is owned by other than buyer, a copy of all pertinent leases or grazing permits must be included.

 

	 	 ̈	Copy of assessors map or allotment map with place(s) of use identified. 

 

For partial assignments more detailed
land ownership information may be requested.

 

(Page 2 of 3)

 

    	 

    	 

      

REQUEST FOR ASSIGNMENT ATTACHMENT

 

	Registry number of right or claim 	36-42343.0001	x        Entire right or claim	 ̈       Partial

 

Use __________ Quantity ______ 1⁄4       
1⁄4          1⁄4_____, Section     
, Township        N/S, Range        E/W;
Parcel I.D. No. _____________

 

Use __________ Quantity ______ 1⁄4       
1⁄4          1⁄4_____, Section     
, Township        N/S, Range        E/W;
Parcel I.D. No. _____________

 

Use __________ Quantity ______ 1⁄4       
1⁄4          1⁄4_____, Section     
, Township        N/S, Range        E/W;
Parcel I.D. No. _____________

 

 

 

 

	Registry number of right or claim 	 	 ̈        Entire right or claim	 ̈       Partial

 

Use __________ Quantity ______ 1⁄4       
1⁄4          1⁄4_____, Section     
, Township        N/S, Range        E/W;
Parcel I.D. No. _____________

 

Use __________ Quantity ______ 1⁄4       
1⁄4          1⁄4_____, Section     
, Township        N/S, Range        E/W;
Parcel I.D. No. _____________

 

Use __________ Quantity ______ 1⁄4       
1⁄4          1⁄4_____, Section     
, Township        N/S, Range        E/W;
Parcel I.D. No. _____________

 

 

 

 

	Registry number of right or claim 	 	 ̈        Entire right or claim	 ̈       Partial

 

Use __________ Quantity ______ 1⁄4       
1⁄4          1⁄4_____, Section     
, Township        N/S, Range        E/W;
Parcel I.D. No. _____________

 

Use __________ Quantity ______ 1⁄4       
1⁄4          1⁄4_____, Section     
, Township        N/S, Range        E/W;
Parcel I.D. No. _____________

 

Use __________ Quantity ______ 1⁄4       
1⁄4          1⁄4_____, Section     
, Township        N/S, Range        E/W;
Parcel I.D. No. _____________

 

 (Page
3 of 3)

 

 

    	 

    	 

     

Exhibit 8(q)(iv) 

 

STATEMENT OF CLAIMANT

 

ASSIGNMENT

 

Gila River Adjudication

SUPERIOR COURT OF MARICOPA COUNTY

 

By court order, a statement of claimant
must be assigned whenever there is a change in ownership of land for which the claim for a water right was made, or there is a
change in ownership of the water right that is either not appurtenant to land or that has been transferred from one parcel of land
to another. This form is to be used to assign statements of claimant (“39s”) filed in the general adjudication of the
Gila River System and Source, which includes the Salt River, San Pedro River, Upper Gila River, Verde River, Agua Fria River, Lower
Gila River and Upper Santa Cruz River watersheds. After the assignment is completed, the new owner will be substituted as a party
in the Gila River adjudication.

 

General Instructions

 

Each side of this form must be completed,
signed by each buyer and seller, and notarized. The name, address and phone number for each buyer and seller must also be provided.
If necessary, additional copies of this form may be attached.

 

A copy of a legal document that establishes
that a change of ownership has occurred must be submitted with this form. This requirement may be satisfied by providing either
a copy of a duly recorded deed, a copy of the county assessor's tax parcel notice, or other similar document.

 

More than one statement of claimant may
be assigned on a single form if the assignors (sellers) and assignees (buyers) are identical. Otherwise, a separate form must be
submitted. For example, if the ownership of the land or the water right is subdivided and conveyed to different buyers, then a
separate form must be completed for each of the different buyers.

 

After this form is completed, please submit
it to the Arizona Department of Water Resources, Attention: Adjudications, 3550 North Central Avenue 2nd floor, Phoenix,
AZ 85012. The Department will record the assignment and forward this form to the Superior Court of Maricopa County. If
you have any questions regarding this form, please contact the Arizona Department of Water Resources at (602) 771-8627 or (800)
352-8488.

 

ASSIGNMENT

 

The undersigned parties hereby notify the
Superior Court of Maricopa County of the assignment of the following statements of claimant:

 

	39- 48282	filed in the	Verde River	watershed.
	 	 	 	 
	39- 48283	filed in the	Verde River	watershed.
	 	 	 	 
	39- 48284	filed in the	Verde River	watershed.

 

Rev. 7/00

 

    	 

    	 

     

	39- 48285	filed in the	Verde River	watershed.

 

Type of legal document enclosed to establish a change of ownership:

 

 ̈ Recorded Deed
(date, file number, county) _______________________________________________________________

 

 ̈ Tax Parcel
Notice (date, county) _______________________________________________________________________

 

 ̈ Other (date,
description) _____________________________________________________________________________

 

	ASSIGNOR (seller):	ASSIGNEE (buyer):

 

	HL LLC	 	HL Newco, LLC
	Name (printed or typed)	 	Name (printed or typed)
	 	 	 
	6900 E. Camelback Rd., Suite 830	 	c/o IMH Financial Corp.
	Address	 	Address
	Scottsdale, AZ  85251	 	7001 N. Scottsdale Road, Suite 2050 

Scottsdale, AZ 85253
	 	 	 
	(480) 941-0221, Ext. 311	 	(480) 840-8400
	Telephone	 	Telephone
	 	 	 
	 	 	 
	Signature	 	Signature

 

	STATE OF ARIZONA	)	 	STATE OF ARIZONA	)
	 	)	 	 	)
	County of _____________________	)	 	County of _____________________	)

 

	The foregoing instrument was	The foregoing instrument was
	acknowledged and signed before	acknowledged and signed before
	me on this ___________ day of	me on this ___________ day of
	_____________________, 2013.	_____________________, 2013.
	by _______________________________.	by _______________________________.
	_________________________________	__________________________________
	Notary Public	Notary Public
	My commission expires:  ____________	My commission expires:  ____________

 

Rev. 7/00

 

    	 

    	 

     

 

 

 

EXHIBIT 8(q)-v-A

 

ADWR REOUEST TO CHANGE
WELL INFORMATION (LAMERRA, 55-609715)

 

 

    	 

    	 

    

 

    	 

    	 

    

 

Exhibit 8(t)

 

ASSIGNMENT AND ASSUMPTION OF LIMITED
LIABILITY COMPANY

MEMBERSHIP INTEREST

 

(Canyon Portal II, L.L.C.)

 

KNOW ALL PERSONS BY
THESE PRESENTS, that, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Albert
B. Spector, Jr. (“Assignor”), hereby irrevocably assigns, sells, transfers and conveys to _____________________,
a _____________________________________ (“Assignee”), free and clear of any liens, pledges, claims, charges,
security interests or encumbrances of any nature whatsoever, all right, title and interest of Assignor in a 28.175% membership
interest (the “Interest”) in Canyon Portal II, L.L.C., an Arizona limited liability company (the “Company”)
under the Articles of Organization of the Company. This Assignment includes, without limitation, all of Assignor's Interest, percentage
interest and/or capital account in the Company, and all economic, voting, consensual and other rights relating thereto. Assignor
covenants, represents and warrants to Assignee that Assignor is the lawful owner and holder of the right, title, and interest intended
to be assigned, sold, transferred and conveyed hereby, and that Assignor has complete and unrestricted power and authority to execute
and deliver this Assignment and to make the assignment contemplated hereby, and has taken all corporate or other action necessary
or required to make this Assignment valid, binding, and enforceable. This Assignment shall be binding upon Assignor and his, her
or its heirs, successors and assigns, and shall inure to the benefit of Assignee and its successors and assigns. Assignor shall
warrant and defend the right, title, and interest hereby assigned unto Assignee forever against the claims and demands of all persons.

 

Dated: _____________ ____, 2013

 

	 	 
	 	By:	Albert B. Spector, Jr.
	 	 	Assignor

 

    	 

    	 

    

 

 

ACCEPTANCE OF ASSIGNMENT

 

Assignee hereby accepts
the foregoing Assignment and, in connection therewith, hereby agrees to be bound by all of the terms and conditions of the Articles
of Organization of the Company.

 

	 	_____________________,                    	                          a 
	 	 	 

 

	 	By:	IMH Financial Corporation, a Delaware limited

liability company
	 	Its:	Sole Member
	 	 	 
	 	 	By:	 
	 	 	Name:	 
	 	 	Its:	 

 

ACKNOWLEDGEMENT AND
CONSENT

 

Canyon Portal II, L.L.C.,
an Arizona limited liability company, for itself as a Member of the Company and on behalf of the Company, (i) hereby acknowledges
and irrevocably approves and consents to the foregoing Assignment and represents and warrants to Assignee that all facts and other
matters stated therein are true and that the interests thereby transferred are not subject to any duties, responsibilities, or
other obligations accruing prior to the date hereof; and (ii) hereby admits Assignee as a Substitute Member of the Company in place
of Assignor with a 28.175% membership interest.

 

Dated: __________ ____, 2013

 

	 	CANYON PORTAL II, L.L.C.,
	 	an Arizona limited liability company
	 	 
	 	By:  	 
	 	 	Albert B. Spector
	 	Its:	 

 

Assignment of LLC Interest –
Acceptance/Acknowledgement

 

    	 

    	 

     

 

 

Exhibit 8(u)

 

Day of Closing Protocol

 

Exhibit not provided
to Polsinelli.

 

 

    	 

    	 

     

 

 

 

 

Exhibit 9(a)

 

Employees

 

See Exhibit 3(x)-i.

 

    	 

    	 

     

 

 

Exhibit 18(a)

Approved Budget

 

L'Auberge de Sedona Resort

Profit and Loss Statement

March 2013 

 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Current Month	 
	 	 	Actual	 	 	%
    to

    Revenue	 	 	Budget	 	 	%
    to

    Revenue	 	 	Variance	 	 	%
    to

    Revenue	 	 	Prior
    Year	 	 	%
    to

    Revenue	 	 	Variance	 	 	%
    to

    Revenue	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Rooms Available	 	 	2,697	 	 	 	 	 	 	 	2,697	 	 	 	 	 	 	 	-	 	 	 	 	 	 	 	2,697	 	 	 	 	 	 	 	-	 	 	 	 	 
	 Occupied Rooms	 	 	2,158	 	 	 	 	 	 	 	2,104	 	 	 	 	 	 	 	54	 	 	 	 	 	 	 	2,111	 	 	 	 	 	 	 	47	 	 	 	 	 
	Occupancy	 	 	80.0	%	 	 	 	 	 	 	78.0	%	 	 	 	 	 	 	2.6	%	 	 	 	 	 	 	78.3	%	 	 	 	 	 	 	2.2	%	 	 	 	 
	 Average Daily Rate (ADR)	 	$	391.44	 	 	 	 	 	 	$	365.00	 	 	 	 	 	 	$	26.44	 	 	 	 	 	 	$	352.40	 	 	 	 	 	 	$	39.04	 	 	 	 	 
	 Revenue/Available Room (REVPAR)	 	$	313.21	 	 	 	 	 	 	$	284.75	 	 	 	 	 	 	$	28.47	 	 	 	 	 	 	$	275.83	 	 	 	 	 	 	$	37.38	 	 	 	 	 
	Gross Revenue/Room	 	$	676.47	 	 	 	 	 	 	$	613.32	 	 	 	 	 	 	$	63.15	 	 	 	 	 	 	$	598.29	 	 	 	 	 	 	$	78.18	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Revenues	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Rooms	 	 	844,731	 	 	 	57.9	%	 	 	767,960	 	 	 	59.5	%	 	 	76,771	 	 	 	45.3	%	 	 	743,916	 	 	 	58.9	%	 	 	100,815	 	 	 	51.2	%
	Food & Beverage	 	 	425,632	 	 	 	29.2	%	 	 	349,000	 	 	 	27.0	%	 	 	76,632	 	 	 	45.2	%	 	 	377,585	 	 	 	29.9	%	 	 	48,047	 	 	 	24.4	%
	Spa	 	 	95,676	 	 	 	6.6	%	 	 	92,338	 	 	 	7.2	%	 	 	3,338	 	 	 	2.0	%	 	 	85,498	 	 	 	6.8	%	 	 	10,178	 	 	 	5.2	%
	Miscellaneous	 	 	93,780	 	 	 	6.4	%	 	 	81,135	 	 	 	6.3	%	 	 	12,645	 	 	 	7.5	%	 	 	55,989	 	 	 	4.4	%	 	 	37,791	 	 	 	19.2	%
	Total Revenues	 	 	1,459,820	 	 	 	100.0	%	 	 	1,290,433	 	 	 	100.0	%	 	 	169,387	 	 	 	100.0	%	 	 	1,262,989	 	 	 	100.0	%	 	 	196,831	 	 	 	100.0	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Department Expenses	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Rooms	 	 	225,435	 	 	 	26.7	%	 	 	198,868	 	 	 	25.9	%	 	 	26,567	 	 	 	34.6	%	 	 	198,938	 	 	 	26.7	%	 	 	26,497	 	 	 	26.3	%
	Food & Beverage	 	 	363,126	 	 	 	85.3	%	 	 	292,553	 	 	 	83.8	%	 	 	70,573	 	 	 	92.1	%	 	 	306,062	 	 	 	81.1	%	 	 	57,064	 	 	 	118.8	%
	Spa	 	 	66,369	 	 	 	69.4	%	 	 	60,596	 	 	 	65.6	%	 	 	5,773	 	 	 	172.9	%	 	 	57,417	 	 	 	67.2	%	 	 	8,952	 	 	 	87.9	%
	Miscellaneous	 	 	18,622	 	 	 	19.9	%	 	 	26,293	 	 	 	32.4	%	 	 	(7,671	)	 	 	-60.7	%	 	 	25,527	 	 	 	45.6	%	 	 	(6,905	)	 	 	-18.3	%
	Total Department Expenses	 	 	673,552	 	 	 	46.1	%	 	 	578,310	 	 	 	44.8	%	 	 	95,242	 	 	 	56.2	%	 	 	587,945	 	 	 	46.6	%	 	 	85,607	 	 	 	43.5	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Departmental Profit	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Rooms	 	 	619,296	 	 	 	73.3	%	 	 	569,092	 	 	 	74.1	%	 	 	50,204	 	 	 	65.4	%	 	 	544,978	 	 	 	73.3	%	 	 	74,318	 	 	 	73.7	%
	Food & Beverage	 	 	62,507	 	 	 	14.7	%	 	 	56,447	 	 	 	16.2	%	 	 	6,060	 	 	 	7.9	%	 	 	71,523	 	 	 	18.9	%	 	 	(9,017	)	 	 	-18.8	%
	Spa	 	 	29,307	 	 	 	30.6	%	 	 	31,742	 	 	 	34.4	%	 	 	(2,435	)	 	 	-72.9	%	 	 	28,081	 	 	 	32.8	%	 	 	1,227	 	 	 	12.1	%
	Miscellaneous	 	 	75,158	 	 	 	80.1	%	 	 	54,842	 	 	 	67.6	%	 	 	20,316	 	 	 	160.7	%	 	 	30,462	 	 	 	54.4	%	 	 	44,696	 	 	 	118.3	%
	Total Departmental Profit	 	 	786,268	 	 	 	53.9	%	 	 	712,123	 	 	 	55.2	%	 	 	74,145	 	 	 	43.8	%	 	 	675,044	 	 	 	53.4	%	 	 	111,224	 	 	 	56.5	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Undistributed Expenses	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Management Fees	 	 	21,897	 	 	 	1.5	%	 	 	19,357	 	 	 	1.5	%	 	 	2,540	 	 	 	1.5	%	 	 	18,945	 	 	 	1.5	%	 	 	2,952	 	 	 	1.5	%
	Administrative & General	 	 	93,677	 	 	 	6.4	%	 	 	118,321	 	 	 	9.2	%	 	 	(24,644	)	 	 	-14.5	%	 	 	118,191	 	 	 	9.4	%	 	 	(24,514	)	 	 	-12.5	%
	Sales & Marketing	 	 	55,453	 	 	 	3.8	%	 	 	71,079	 	 	 	5.5	%	 	 	(15,626	)	 	 	-9.2	%	 	 	69,009	 	 	 	5.5	%	 	 	(13,555	)	 	 	-6.9	%
	Engineering	 	 	74,252	 	 	 	5.1	%	 	 	84,087	 	 	 	6.5	%	 	 	(9,835	)	 	 	-5.8	%	 	 	80,083	 	 	 	6.3	%	 	 	(5,831	)	 	 	-3.0	%
	Utilities	 	 	27,970	 	 	 	1.9	%	 	 	31,272	 	 	 	2.4	%	 	 	(3,302	)	 	 	-1.9	%	 	 	30,361	 	 	 	2.4	%	 	 	(2,391	)	 	 	-1.2	%
	Total Undistributed Expenses	 	 	273,249	 	 	 	18.7	%	 	 	324,116	 	 	 	25.1	%	 	 	(50,867	)	 	 	-15.7	%	 	 	316,588	 	 	 	25.1	%	 	 	(43,339	)	 	 	-13.7	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Gross Operating Profit	 	 	513,019	 	 	 	35.1	%	 	 	388,007	 	 	 	30.1	%	 	 	125,012	 	 	 	73.8	%	 	 	358,456	 	 	 	28.4	%	 	 	154,563	 	 	 	78.5	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Fixed Expenses	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Insurance	 	 	15,862	 	 	 	1.1	%	 	 	17,194	 	 	 	1.3	%	 	 	(1,332	)	 	 	-0.8	%	 	 	14,110	 	 	 	1.1	%	 	 	1,752	 	 	 	0.9	%
	Property Taxes	 	 	11,704	 	 	 	0.8	%	 	 	11,704	 	 	 	0.9	%	 	 	(0	)	 	 	0.0	%	 	 	10,382	 	 	 	0.8	%	 	 	1,322	 	 	 	0.7	%
	Rent	 	 	2,207	 	 	 	0.0	%	 	 	2,207	 	 	 	0.0	%	 	 	(0	)	 	 	0.0	%	 	 	900	 	 	 	0.0	%	 	 	1,307	 	 	 	0.7	%
	Total Fixed Expenses	 	 	29,772	 	 	 	2.0	%	 	 	31,105	 	 	 	2.4	%	 	 	(1,333	)	 	 	-0.8	%	 	 	25,392	 	 	 	2.0	%	 	 	3,074	 	 	 	1.6	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Income Before Reserves	 	 	483,246	 	 	 	33.1	%	 	 	356,902	 	 	 	27.7	%	 	 	126,344	 	 	 	74.6	%	 	 	333,064	 	 	 	26.4	%	 	 	150,183	 	 	 	76.3	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Reserve for Replacement	 	 	58,393	 	 	 	4.0	%	 	 	51,617	 	 	 	4.0	%	 	 	6,775	 	 	 	4.0	%	 	 	50,520	 	 	 	4.0	%	 	 	7,873	 	 	 	4.0	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Net Operating Income	 	 	424,854	 	 	 	29.1	%	 	 	305,285	 	 	 	23.7	%	 	 	119,569	 	 	 	70.6	%	 	 	282,544	 	 	 	22.4	%	 	 	142,309	 	 	 	72.3	%

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	Budget	 
	 	 	Year to Date	 	 	Full Year	 
	 	 	Actual	 	 	%
    to

    Revenue	 	 	Budget	 	 	%
    to

    Revenue	 	 	Variance	 	 	%
    to

    Revenue	 	 	Prior
    Year	 	 	%
    to

    Revenue	 	 	Variance	 	 	%
    to

    Revenue	 	 	Amount	 	 	%	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 Rooms Available	 	 	7,830	 	 	 	 	 	 	 	7,830	 	 	 	 	 	 	 	-	 	 	 	 	 	 	 	7,917	 	 	 	 	 	 	 	(87	)	 	 	 	 	 	 	31,842	 	 	 	 	 
	 Occupied Rooms	 	 	4,792	 	 	 	 	 	 	 	4,750	 	 	 	 	 	 	 	42	 	 	 	 	 	 	 	5,184	 	 	 	 	 	 	 	(392	)	 	 	 	 	 	 	22,758	 	 	 	 	 
	Occupancy	 	 	61.2	%	 	 	 	 	 	 	60.7	%	 	 	 	 	 	 	0.9	%	 	 	 	 	 	 	65.5	%	 	 	 	 	 	 	-7.6	%	 	 	 	 	 	 	71.5	%	 	 	 	 
	 Average Daily Rate (ADR)	 	$	329.79	 	 	 	 	 	 	$	317.76	 	 	 	 	 	 	$	12.03	 	 	 	 	 	 	 	286.82	 	 	 	 	 	 	$	42.97	 	 	 	 	 	 	$	340.63	 	 	 	 	 
	 Revenue/Available Room (REVPAR)	 	$	201.84	 	 	 	 	 	 	$	192.77	 	 	 	 	 	 	$	9.07	 	 	 	 	 	 	 	187.81	 	 	 	 	 	 	$	14.03	 	 	 	 	 	 	$	243.45	 	 	 	 	 
	Gross Revenue/Room	 	$	589.92	 	 	 	 	 	 	$	564.18	 	 	 	 	 	 	$	25.74	 	 	 	 	 	 	 	525.59	 	 	 	 	 	 	$	64.34	 	 	 	 	 	 	$	625.51	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Revenues	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Rooms	 	 	1,580,370	 	 	 	55.9	%	 	 	1,509,382	 	 	 	56.3	%	 	 	70,988	 	 	 	48.3	%	 	 	1,486,869	 	 	 	54.6	%	 	 	93,501	 	 	 	91.4	%	 	 	7,752,011	 	 	 	54.5	%
	Food & Beverage	 	 	811,580	 	 	 	28.7	%	 	 	764,053	 	 	 	28.5	%	 	 	47,527	 	 	 	32.3	%	 	 	893,940	 	 	 	32.8	%	 	 	(82,360	)	 	 	-80.5	%	 	 	4,697,733	 	 	 	33.0	%
	Spa	 	 	230,590	 	 	 	8.2	%	 	 	218,669	 	 	 	8.2	%	 	 	11,921	 	 	 	8.1	%	 	 	199,996	 	 	 	7.3	%	 	 	30,594	 	 	 	29.9	%	 	 	965,287	 	 	 	6.8	%
	Miscellaneous	 	 	204,380	 	 	 	7.2	%	 	 	187,760	 	 	 	7.0	%	 	 	16,620	 	 	 	11.3	%	 	 	143,830	 	 	 	5.3	%	 	 	60,550	 	 	 	59.2	%	 	 	820,405	 	 	 	5.8	%
	Total Revenues	 	 	2,826,920	 	 	 	100.0	%	 	 	2,679,864	 	 	 	100.0	%	 	 	147,056	 	 	 	100.0	%	 	 	2,724,635	 	 	 	100.0	%	 	 	102,286	 	 	 	100.0	%	 	 	14,235,436	 	 	 	100.0	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Department Expenses	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Rooms	 	 	557,151	 	 	 	35.3	%	 	 	524,774	 	 	 	34.8	%	 	 	32,377	 	 	 	45.6	%	 	 	525,029	 	 	 	35.3	%	 	 	32,122	 	 	 	34.4	%	 	 	2,349,977	 	 	 	30.3	%
	Food & Beverage	 	 	829,981	 	 	 	102.3	%	 	 	757,500	 	 	 	99.1	%	 	 	72,481	 	 	 	152.5	%	 	 	686,896	 	 	 	76.8	%	 	 	143,085	 	 	 	-173.7	%	 	 	3,677,821	 	 	 	78.3	%
	Spa	 	 	170,364	 	 	 	73.9	%	 	 	162,039	 	 	 	74.1	%	 	 	8,325	 	 	 	69.8	%	 	 	159,596	 	 	 	79.8	%	 	 	10,768	 	 	 	35.2	%	 	 	695,181	 	 	 	72.0	%
	Miscellaneous	 	 	52,160	 	 	 	25.5	%	 	 	59,322	 	 	 	31.6	%	 	 	(7,162	)	 	 	-43.1	%	 	 	61,419	 	 	 	42.7	%	 	 	(9,259	)	 	 	-15.3	%	 	 	305,617	 	 	 	37.3	%
	Total Department Expenses	 	 	1,609,657	 	 	 	56.9	%	 	 	1,503,635	 	 	 	56.1	%	 	 	106,022	 	 	 	72.1	%	 	 	1,432,940	 	 	 	52.6	%	 	 	176,716	 	 	 	172.8	%	 	 	7,028,596	 	 	 	49.4	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Departmental Profit	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Rooms	 	 	1,023,219	 	 	 	64.7	%	 	 	984,608	 	 	 	65.2	%	 	 	38,611	 	 	 	54.4	%	 	 	961,840	 	 	 	64.7	%	 	 	61,379	 	 	 	65.6	%	 	 	5,402,034	 	 	 	69.7	%
	Food & Beverage	 	 	(18,401	)	 	 	-2.3	%	 	 	6,553	 	 	 	0.9	%	 	 	(24,954	)	 	 	-52.5	%	 	 	207,044	 	 	 	23.2	%	 	 	(225,445	)	 	 	273.7	%	 	 	1,019,912	 	 	 	21.7	%
	Spa	 	 	60,225	 	 	 	26.1	%	 	 	56,630	 	 	 	25.9	%	 	 	3,595	 	 	 	30.2	%	 	 	40,399	 	 	 	20.2	%	 	 	19,826	 	 	 	64.8	%	 	 	270,106	 	 	 	28.0	%
	Miscellaneous	 	 	152,220	 	 	 	74.5	%	 	 	128,438	 	 	 	68.4	%	 	 	23,782	 	 	 	143.1	%	 	 	82,411	 	 	 	57.3	%	 	 	69,809	 	 	 	115.3	%	 	 	514,788	 	 	 	62.7	%
	Total Departmental Profit	 	 	1,217,264	 	 	 	43.1	%	 	 	1,176,229	 	 	 	43.9	%	 	 	41,035	 	 	 	27.9	%	 	 	1,291,695	 	 	 	47.4	%	 	 	(74,431	)	 	 	-72.8	%	 	 	7,206,840	 	 	 	50.6	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Undistributed Expenses	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Management Fees	 	 	42,404	 	 	 	1.5	%	 	 	40,199	 	 	 	1.5	%	 	 	2,205	 	 	 	1.5	%	 	 	40,870	 	 	 	1.5	%	 	 	1,534	 	 	 	1.5	%	 	 	213,531	 	 	 	1.5	%
	Administrative & General	 	 	288,874	 	 	 	10.2	%	 	 	338,544	 	 	 	12.6	%	 	 	(49,670	)	 	 	-33.8	%	 	 	273,281	 	 	 	10.0	%	 	 	15,593	 	 	 	15.2	%	 	 	1,463,735	 	 	 	10.3	%
	Sales & Marketing	 	 	190,008	 	 	 	6.7	%	 	 	217,305	 	 	 	8.1	%	 	 	(27,298	)	 	 	-18.6	%	 	 	205,019	 	 	 	7.5	%	 	 	(15,012	)	 	 	-14.7	%	 	 	950,317	 	 	 	6.7	%
	Engineering	 	 	210,700	 	 	 	7.5	%	 	 	229,666	 	 	 	8.6	%	 	 	(18,966	)	 	 	-12.9	%	 	 	211,381	 	 	 	7.8	%	 	 	(680	)	 	 	-0.7	%	 	 	940,888	 	 	 	6.6	%
	Utilities	 	 	100,331	 	 	 	3.5	%	 	 	97,074	 	 	 	3.6	%	 	 	3,257	 	 	 	2.2	%	 	 	90,643	 	 	 	3.3	%	 	 	9,688	 	 	 	9.5	%	 	 	402,157	 	 	 	2.8	%
	Total Undistributed Expenses	 	 	832,316	 	 	 	29.4	%	 	 	922,788	 	 	 	34.4	%	 	 	(90,472	)	 	 	-9.8	%	 	 	821,193	 	 	 	30.1	%	 	 	11,123	 	 	 	1.4	%	 	 	3,970,628	 	 	 	27.9	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Gross Operating Profit	 	 	384,947	 	 	 	13.6	%	 	 	253,441	 	 	 	9.5	%	 	 	131,506	 	 	 	89.4	%	 	 	470,501	 	 	 	17.3	%	 	 	(85,554	)	 	 	-83.6	%	 	 	3,236,212	 	 	 	22.7	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Fixed Expenses	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Insurance	 	 	50,326	 	 	 	1.8	%	 	 	50,250	 	 	 	1.9	%	 	 	76	 	 	 	0.1	%	 	 	45,650	 	 	 	1.7	%	 	 	4,676	 	 	 	4.6	%	 	 	193,596	 	 	 	1.4	%
	Property Taxes	 	 	35,112	 	 	 	1.2	%	 	 	35,112	 	 	 	1.3	%	 	 	(0	)	 	 	0.0	%	 	 	31,146	 	 	 	1.1	%	 	 	3,966	 	 	 	3.9	%	 	 	121,044	 	 	 	0.9	%
	Rent	 	 	6,620	 	 	 	0.0	%	 	 	6,621	 	 	 	0.0	%	 	 	(1	)	 	 	0.0	%	 	 	900	 	 	 	0.0	%	 	 	5,720	 	 	 	5.6	%	 	 	13,242	 	 	 	0.0	%
	Total Fixed Expenses	 	 	92,057	 	 	 	3.3	%	 	 	91,983	 	 	 	3.4	%	 	 	74	 	 	 	0.1	%	 	 	77,696	 	 	 	2.9	%	 	 	14,362	 	 	 	14.0	%	 	 	327,882	 	 	 	2.3	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Income Before Reserves	 	 	292,890	 	 	 	10.4	%	 	 	161,458	 	 	 	6.0	%	 	 	131,432	 	 	 	89.4	%	 	 	392,806	 	 	 	14.4	%	 	 	(99,916	)	 	 	-97.7	%	 	 	2,908,330	 	 	 	20.4	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Reserve for Replacement	 	 	113,077	 	 	 	4.0	%	 	 	107,195	 	 	 	4.0	%	 	 	5,882	 	 	 	4.0	%	 	 	76,696	 	 	 	2.8	%	 	 	36,381	 	 	 	35.6	%	 	 	569,417	 	 	 	4.0	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Net Operating Income	 	 	179,813	 	 	 	6.4	%	 	 	54,263	 	 	 	2.0	%	 	 	125,550	 	 	 	85.4	%	 	 	316,110	 	 	 	11.6	%	 	 	(136,297	)	 	 	-133.3	%	 	 	2,338,913	 	 	 	16.4	%

  

	 	Page 1 of 23	109.1. Ex 18(a)- 1st Part - L'Auberge_Resort March 13 Issue / Report

  

    	 

    	 

     

L'Auberge de Sedona Resort

Current Year Actual

2012

 

Current Year - 2013

 

Year to Date

 

	 	 	January	 	 	February	 	 	March	 	 	Total Year	 
	 	 	Amount	 	 	POR	 	 	Amount	 	 	POR	 	 	Amount	 	 	POR	 	 	Amount	 	 	POR	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Rooms Available	 	 	2,697	 	 	 	 	 	 	 	2,436	 	 	 	 	 	 	 	2,697	 	 	 	 	 	 	 	7,830	 	 	 	 	 
	Occupied Rooms	 	 	1,233	 	 	 	 	 	 	 	1,401	 	 	 	 	 	 	 	2,158	 	 	 	 	 	 	 	4,792	 	 	 	 	 
	Occupancy	 	 	45.7	%	 	 	 	 	 	 	57.5	%	 	 	 	 	 	 	80.0	%	 	 	 	 	 	 	80	%	 	 	 	 
	Average Daily Rate (ADR)	 	$	257.52	 	 	 	 	 	 	$	298.44	 	 	 	 	 	 	$	391.44	 	 	 	 	 	 	$	391.44	 	 	 	 	 
	Revenue/Available Room (REVPAR)	 	$	117.73	 	 	 	 	 	 	$	171.64	 	 	 	 	 	 	$	313.21	 	 	 	 	 	 	$	313.21	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Revenues	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Rooms	 	 	317,522	 	 	$	391.33	 	 	 	418,117	 	 	$	298.44	 	 	 	844,731	 	 	$	391.44	 	 	 	1,580,370	 	 	$	329.79	 
	Food & Beverage	 	 	165,053	 	 	$	212.41	 	 	 	220,894	 	 	$	157.67	 	 	 	425,632	 	 	$	197.23	 	 	 	811,580	 	 	$	169.36	 
	Spa	 	 	63,945	 	 	$	50.87	 	 	 	70,969	 	 	$	50.66	 	 	 	95,676	 	 	$	44.34	 	 	 	230,590	 	 	$	48.12	 
	Miscellaneous	 	 	48,801	 	 	$	53.46	 	 	 	61,799	 	 	$	44.11	 	 	 	93,780	 	 	$	43.46	 	 	 	204,380	 	 	$	42.65	 
	LA Store	 	 	-	 	 	$	-	 	 	 	-	 	 	$	-	 	 	 	-	 	 	$	-	 	 	 	0	 	 	$	-	 
	Total Revenues	 	 	595,322	 	 	$	708.08	 	 	 	771,779	 	 	$	550.88	 	 	 	1,459,820	 	 	$	676.47	 	 	 	2,826,920	 	 	$	589.92	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Department Expenses	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Rooms	 	 	165,790	 	 	$	135.19	 	 	 	165,925	 	 	$	118.43	 	 	 	225,435	 	 	$	104.46	 	 	 	557,151	 	 	$	116.27	 
	Food & Beverage	 	 	225,020	 	 	$	218.24	 	 	 	241,836	 	 	$	172.62	 	 	 	363,126	 	 	$	168.27	 	 	 	829,981	 	 	$	173.20	 
	Spa	 	 	51,140	 	 	$	39.35	 	 	 	52,856	 	 	$	37.73	 	 	 	66,369	 	 	$	30.75	 	 	 	170,364	 	 	$	35.55	 
	Miscellaneous	 	 	15,229	 	 	$	14.59	 	 	 	18,309	 	 	$	13.07	 	 	 	18,622	 	 	$	8.63	 	 	 	52,160	 	 	$	10.88	 
	LA Store	 	 	-	 	 	$	-	 	 	 	-	 	 	$	-	 	 	 	-	 	 	$	-	 	 	 	0	 	 	$	-	 
	Total Department Expenses	 	 	457,179	 	 	$	407.37	 	 	 	478,926	 	 	$	341.85	 	 	 	673,552	 	 	$	312.12	 	 	 	1,609,657	 	 	$	335.90	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Departmental Profit	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Rooms	 	 	151,732	 	 	$	256.14	 	 	 	252,192	 	 	$	180.01	 	 	 	619,296	 	 	$	286.98	 	 	 	1,023,219	 	 	$	213.53	 
	Food & Beverage	 	 	(59,966	)	 	$	(5.82	)	 	 	(20,942	)	 	$	(14.95	)	 	 	62,507	 	 	$	28.97	 	 	 	(18,401	)	 	$	(3.84	)
	Spa	 	 	12,805	 	 	$	11.52	 	 	 	18,113	 	 	$	12.93	 	 	 	29,307	 	 	$	13.58	 	 	 	60,225	 	 	$	12.57	 
	Miscellaneous	 	 	33,572	 	 	$	38.87	 	 	 	43,490	 	 	$	31.04	 	 	 	75,158	 	 	$	34.83	 	 	 	152,220	 	 	$	31.77	 
	LA Store	 	 	0	 	 	$	-	 	 	 	0	 	 	$	-	 	 	 	0	 	 	$	-	 	 	 	0	 	 	$	-	 
	Total Departmental Profit	 	 	138,143	 	 	$	300.71	 	 	 	292,853	 	 	$	209.03	 	 	 	786,268	 	 	$	364.35	 	 	 	1,217,264	 	 	$	254.02	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Undistributed Expenses	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Management Fees	 	 	8,930	 	 	$	10.62	 	 	 	11,577	 	 	$	8.26	 	 	 	21,897	 	 	$	10.15	 	 	 	42,404	 	 	$	8.85	 
	Administrative & General	 	 	104,700	 	 	$	97.58	 	 	 	90,497	 	 	$	64.59	 	 	 	93,677	 	 	$	43.41	 	 	 	288,874	 	 	$	60.28	 
	Sales & Marketing	 	 	75,149	 	 	$	59.36	 	 	 	59,406	 	 	$	42.40	 	 	 	55,453	 	 	$	25.70	 	 	 	190,008	 	 	$	39.65	 
	Engineering	 	 	69,743	 	 	$	63.18	 	 	 	66,705	 	 	$	47.61	 	 	 	74,252	 	 	$	34.41	 	 	 	210,700	 	 	$	43.97	 
	Utilities	 	 	36,102	 	 	$	33.19	 	 	 	36,259	 	 	$	25.88	 	 	 	27,970	 	 	$	12.96	 	 	 	100,331	 	 	$	20.94	 
	Total Undistributed Expenses	 	 	294,624	 	 	$	263.93	 	 	 	264,443	 	 	$	188.75	 	 	 	273,249	 	 	$	126.62	 	 	 	832,316	 	 	$	173.69	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Gross Operating Profit	 	 	(156,481	)	 	$	36.78	 	 	 	28,409	 	 	$	20.28	 	 	 	513,019	 	 	$	237.73	 	 	 	384,947	 	 	$	80.33	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Fixed Expenses	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Property Taxes	 	 	11,704	 	 	$	10.24	 	 	 	11,704	 	 	$	8.35	 	 	 	11,704	 	 	$	5.42	 	 	 	35,112	 	 	$	7.33	 
	Insurance	 	 	15,862	 	 	$	13.65	 	 	 	18,602	 	 	$	13.28	 	 	 	15,862	 	 	$	7.35	 	 	 	50,326	 	 	$	10.50	 
	Rent	 	 	2,207	 	 	$	-	 	 	 	2,207	 	 	$	1.58	 	 	 	2,207	 	 	$	1.02	 	 	 	6,620	 	 	$	1.38	 
	Total Fixed Expenses	 	 	29,772	 	 	$	23.89	 	 	 	32,513	 	 	$	23.21	 	 	 	29,772	 	 	$	13.80	 	 	 	92,057	 	 	$	19.21	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Income Before Reserves	 	 	(186,253	)	 	$	12.89	 	 	 	(4,103	)	 	$	(2.93	)	 	 	483,246	 	 	$	223.93	 	 	 	292,890	 	 	$	61.12	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Reserve for Replacement	 	 	23,813	 	 	$	28.32	 	 	 	30,871	 	 	$	22.04	 	 	 	58,393	 	 	$	27.06	 	 	 	113,077	 	 	$	23.60	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Net Operating Income	 	 	(210,066	)	 	$	(15.43	)	 	 	(34,975	)	 	$	(24.96	)	 	 	424,854	 	 	$	196.87	 	 	 	179,813	 	 	$	37.52	 

 

 

	 	Page 2 of 23	109.1. Ex 18(a)- 1st Part - L'Auberge_Resort March 13 Issue / Current YTD

 

 

 

    	 

    	 

     

L'Auberge de Sedona Resort

Prior Year Actual

2011

  

Prior Year - 2012

  

 

	 	 	Year to Date	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	January	 	February	 	March	 	April	 	May	 	June	 
	 	 	Amount	 	POR	 	Amount	 	POR	 	Amount	 	POR	 	Amount	 	 	POR	 	Amount	 	POR	 	Amount	 	POR	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Rooms Available	 	 	2,697	 	 	 	 	 	2,523	 	 	 	 	 	2,697	 	 	 	 	 	2,610	 	 	 	 	 	 	2,697	 	 	 	 	 	2,610	 	 	 	 
	Occupied Rooms	 	 	1,519	 	 	 	 	 	1,554	 	 	 	 	 	2,111	 	 	 	 	 	2,244	 	 	 	 	 	 	1,987	 	 	 	 	 	2,016	 	 	 	 
	Occupancy	 	 	56.3	%	 	 	 	 	61.6	%	 	 	 	 	78.3	%	 	 	 	 	86.0	%	 	 	 	 	 	73.7	%	 	 	 	 	77.2	%	 	 	 
	 Average Daily Rate (ADR)	 	$	220.84	 	 	 	 	$	262.23	 	 	 	 	$	352.40	 	 	 	 	$	393.88	 	 	 	 	 	$	354.94	 	 	 	 	$	312.25	 	 	 	 
	 Revenue/Available Room (REVPAR)	 	$	124.38	 	 	 	 	$	161.51	 	 	 	 	$	275.83	 	 	 	 	$	338.65	 	 	 	 	 	$	261.50	 	 	 	 	$	241.19	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Revenues	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Rooms	 	 	335,454	 	$	220.84	 	 	407,499	 	$	262.23	 	 	743,916	 	$	352.40	 	 	883,864	 	 	$	393.88	 	 	705,261	 	$	354.94	 	$	629,499	 	$	312	 
	Food & Beverage	 	 	217,472	 	$	143.17	 	 	298,882	 	$	192.33	 	 	377,585	 	$	178.87	 	 	517,012	 	 	$	230.40	 	 	609,232	 	$	306.61	 	$	495,772	 	$	246	 
	Spa	 	 	56,733	 	$	37.35	 	 	57,765	 	$	37.17	 	 	85,498	 	$	40.50	 	 	85,123	 	 	$	37.93	 	 	83,980	 	$	42.26	 	$	81,357	 	$	40	 
	Miscellaneous	 	 	44,756	 	$	29.46	 	 	43,086	 	$	27.73	 	 	55,989	 	$	26.52	 	 	64,122	 	 	$	28.57	 	 	58,805	 	$	29.59	 	$	58,660	 	$	29	 
	LA Store	 	 	0	 	$	-	 	 	0	 	$	-	 	 	0	 	$	-	 	 	0	 	 	$	-	 	 	0	 	$	-	 	$	-	 	$	-	 
	Total Revenues	 	 	654,414	 	 	431	 	 	807,232	 	 	519	 	 	1,262,989	 	 	598	 	 	1,550,121	 	 	 	691	 	 	1,457,277	 	 	733	 	$	1,265,289	 	$	628	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Department Expenses	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Rooms	 	 	168,296	 	$	110.79	 	 	157,795	 	$	101.54	 	 	198,938	 	$	94.24	 	 	215,258	 	 	$	95.93	 	 	211,396	 	$	106.39	 	$	203,371	 	$	101	 
	Food & Beverage	 	 	226,233	 	$	148.94	 	 	249,309	 	$	160.43	 	 	306,062	 	$	144.98	 	 	366,117	 	 	$	163.15	 	 	411,439	 	$	207.07	 	$	367,753	 	$	182	 
	Spa	 	 	52,451	 	$	34.53	 	 	49,728	 	$	32.00	 	 	57,417	 	$	27.20	 	 	58,788	 	 	$	26.20	 	 	62,376	 	$	31.39	 	$	60,183	 	$	30	 
	Miscellaneous	 	 	18,610	 	$	12.25	 	 	17,282	 	$	11.12	 	 	25,527	 	$	12.09	 	 	23,877	 	 	$	10.64	 	 	24,140	 	$	12.15	 	$	22,723	 	$	11	 
	LA Store	 	 	0	 	$	-	 	 	0	 	$	-	 	 	0	 	$	-	 	 	0	 	 	$	-	 	 	0	 	$	-	 	$	-	 	$	-	 
	Total Department Expenses	 	 	465,589	 	 	307	 	 	474,114	 	 	305	 	 	587,945	 	 	279	 	 	664,040	 	 	 	296	 	 	709,350	 	 	357	 	$	654,029	 	$	324	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Departmental Profit	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Rooms	 	 	167,158	 	 	110	 	 	249,704	 	 	161	 	 	544,978	 	 	258	 	 	668,606	 	 	 	298	 	 	493,865	 	 	249	 	$	426,128	 	$	211	 
	Food & Beverage	 	 	(8,761	)	 	(6	)	 	49,573	 	 	32	 	 	71,523	 	 	34	 	 	150,896	 	 	 	67	 	 	197,793	 	 	100	 	$	128,020	 	$	64	 
	Spa	 	 	4,282	 	 	3	 	 	8,036	 	 	5	 	 	28,081	 	 	13	 	 	26,335	 	 	 	12	 	 	21,604	 	 	11	 	$	21,175	 	$	11	 
	Miscellaneous	 	 	26,146	 	 	17	 	 	25,804	 	 	17	 	 	30,462	 	 	14	 	 	40,245	 	 	 	18	 	 	34,665	 	 	17	 	$	35,937	 	$	18	 
	LA Store	 	 	0	 	$	-	 	 	0	 	$	-	 	 	0	 	$	-	 	 	0	 	 	$	-	 	 	0	 	$	-	 	$	-	 	$	-	 
	Total Departmental Profit	 	 	188,825	 	 	124	 	 	333,118	 	 	214	 	 	675,044	 	 	320	 	 	886,081	 	 	 	395	 	 	747,927	 	 	376	 	$	611,259	 	$	303	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Undistributed Expenses	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Management Fees	 	 	9,816	 	$	6.46	 	 	12,108	 	$	7.79	 	 	18,945	 	$	8.97	 	 	23,252	 	 	$	10.36	 	 	21,863	 	$	-	 	$	18,939	 	$	9	 
	Administrative & General	 	 	101,375	 	$	66.74	 	 	115,489	 	$	74.32	 	 	118,191	 	$	55.99	 	 	137,616	 	 	$	61.33	 	 	136,513	 	$	68.70	 	$	132,690	 	$	66	 
	Sales & Marketing	 	 	61,623	 	$	40.57	 	 	59,300	 	$	38.16	 	 	69,009	 	$	32.69	 	 	78,162	 	 	$	34.83	 	 	70,120	 	$	35.29	 	$	79,462	 	$	39	 
	Engineering	 	 	59,072	 	$	38.89	 	 	72,225	 	$	46.48	 	 	80,083	 	$	37.94	 	 	96,135	 	 	$	42.84	 	 	93,258	 	$	46.93	 	$	80,138	 	$	40	 
	Utilities	 	 	31,447	 	$	20.70	 	 	28,835	 	$	18.56	 	 	30,361	 	$	14.38	 	 	29,937	 	 	$	13.34	 	 	34,838	 	$	17.53	 	$	34,770	 	$	17	 
	 	 	 	263,333	 	 	173	 	 	287,957	 	 	185	 	 	316,588	 	 	150	 	 	365,101	 	 	 	163	 	 	334,728	 	 	168	 	$	345,999	 	$	172	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Gross Operating Profit	 	 	(74,508	)	 	(49	)	 	45,161	 	 	29	 	 	358,456	 	 	170	 	 	520,980	 	 	 	232	 	 	413,199	 	 	208	 	$	265,261	 	$	132	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Fixed Expenses	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Property Taxes	 	 	10,382	 	$	6.83	 	 	10,382	 	$	6.68	 	 	10,382	 	$	4.92	 	 	22,566	 	 	$	10.06	 	 	15,442	 	$	7.77	 	$	12,622	 	$	6	 
	Insurance	 	 	17,930	 	$	11.80	 	 	13,610	 	$	8.76	 	 	14,110	 	$	6.68	 	 	13,610	 	 	$	6.06	 	 	14,110	 	$	7.10	 	$	14,110	 	$	7	 
	Rent	 	 	0	 	$	-	 	 	0	 	$	-	 	 	900	 	$	0.43	 	 	657	 	 	$	0.29	 	 	4,349	 	$	2.19	 	$	4,349	 	$	2	 
	Total Fixed Expenses	 	 	28,312	 	 	19	 	 	23,992	 	 	15	 	 	25,392	 	 	12	 	 	36,833	 	 	 	16	 	 	33,901	 	 	17	 	$	31,081	 	$	15	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Income Before Reserves	 	 	(102,820	)	$	(67.69	)	 	21,169	 	$	13.62	 	 	333,064	 	$	157.78	 	 	484,147	 	 	$	215.75	 	 	379,298	 	$	190.89	 	$	234,180	 	$	116	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Reserve for Replacement	 	 	26,177	 	$	17.23	 	 	32,289	 	$	20.78	 	 	50,520	 	$	23.93	 	 	62,005	 	 	$	27.63	 	 	58,291	 	$	29.34	 	$	50,612	 	$	25	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Net Operating Income	 	 	(128,996	)	$	(84.92	)	 	(11,120	)	$	(7.16	)	 	282,544	 	$	133.84	 	 	422,142	 	 	$	188.12	 	 	321,006	 	$	161.55	 	$	183,568	 	$	91	 

  

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	July	 	August	 	September	 	October	 	November	 	December	 	Total
    Year	 
	 	 	Amount	 	POR	 	Amount	 	POR	 	Amount	 	POR	 	Amount	 	POR	 	Amount	 	POR	 	Amount	 	POR	 	Amount	 	POR	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Rooms Available	 	 	2,697	 	 	 	 	 	2,697	 	 	 	 	 	2,610	 	 	 	 	 	2,697	 	 	 	 	 	2,610	 	 	 	 	 	2,697	 	 	 	 	 	31,842	 	 	 	 
	Occupied Rooms	 	 	1,889	 	 	 	 	 	1,974	 	 	 	 	 	1,913	 	 	 	 	 	2,092	 	 	 	 	 	1,856	 	 	 	 	 	1,544	 	 	 	 	 	22,699	 	 	 	 
	Occupancy	 	 	70.0	%	 	 	 	 	73.2	%	 	 	 	 	73.3	%	 	 	 	 	77.6	%	 	 	 	 	71.1	%	 	 	 	 	57.2	%	 	 	 	 	71.3	%	 	 	 
	 Average Daily Rate (ADR)	 	$	268.52	 	 	 	 	$	274.49	 	 	 	 	$	355.16	 	 	 	 	$	406.63	 	 	 	 	$	326.85	 	 	 	 	$	312.51	 	 	 	 	$	324.85	 	 	 	 
	 Revenue/Available Room (REVPAR)	 	$	188.07	 	 	 	 	$	200.91	 	 	 	 	$	260.31	 	 	 	 	$	315.41	 	 	 	 	$	232.43	 	 	 	 	$	178.91	 	 	 	 	$	231.57	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Revenues	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Rooms	 	$	507,225	 	$	269	 	$	541,845	 	$	274	 	$	679,415	 	$	355	 	$	850,661	 	$	407	 	$	606,643	 	$	327	 	$	482,514	 	$	313	 	$	7,373,796	 	$	325	 
	Food & Beverage	 	$	393,126	 	$	208	 	$	359,708	 	$	182	 	$	500,279	 	$	262	 	$	600,901	 	$	287	 	$	379,722	 	$	205	 	$	261,907	 	$	170	 	$	5,011,599	 	$	221	 
	Spa	 	$	74,045	 	$	39	 	$	79,167	 	$	40	 	$	78,420	 	$	41	 	$	90,985	 	$	43	 	$	75,324	 	$	41	 	$	62,727	 	$	41	 	$	911,124	 	$	40	 
	Miscellaneous	 	$	57,844	 	$	31	 	$	55,529	 	$	28	 	$	74,521	 	$	39	 	$	88,943	 	$	43	 	$	85,401	 	$	46	 	$	65,916	 	$	43	 	$	753,572	 	$	33	 
	LA Store	 	$	-	 	$	-	 	$	-	 	$	-	 	$	-	 	$	-	 	$	-	 	$	-	 	$	-	 	$	-	 	$	-	 	$	-	 	$	-	 	$	-	 
	Total Revenues	 	$	1,032,241	 	$	546	 	$	1,036,249	 	$	525	 	$	1,332,635	 	$	697	 	$	1,631,490	 	$	780	 	$	1,147,090	 	$	618	 	$	873,064	 	$	565	 	$	14,050,090	 	$	619	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Department Expenses	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Rooms	 	$	193,488	 	$	102	 	$	202,737	 	$	103	 	$	211,178	 	$	110	 	$	220,607	 	$	105	 	$	201,026	 	$	108	 	$	166,691	 	$	108	 	$	2,350,779	 	$	104	 
	Food & Beverage	 	$	333,949	 	$	177	 	$	304,538	 	$	154	 	$	362,602	 	$	190	 	$	409,031	 	$	196	 	$	295,744	 	$	159	 	$	269,088	 	$	174	 	$	3,901,863	 	$	172	 
	Spa	 	$	55,428	 	$	29	 	$	59,012	 	$	30	 	$	60,647	 	$	32	 	$	59,018	 	$	28	 	$	57,509	 	$	31	 	$	48,525	 	$	31	 	$	681,080	 	$	30	 
	Miscellaneous	 	$	23,103	 	$	12	 	$	20,084	 	$	10	 	$	19,798	 	$	10	 	$	21,509	 	$	10	 	$	21,513	 	$	12	 	$	17,985	 	$	12	 	$	256,152	 	$	11	 
	LA Store	 	$	-	 	$	-	 	$	-	 	$	-	 	$	-	 	$	-	 	$	-	 	$	-	 	$	-	 	$	-	 	$	-	 	$	-	 	$	-	 	$	-	 
	Total Department Expenses	 	$	605,968	 	$	321	 	$	586,370	 	$	297	 	$	654,225	 	$	342	 	$	710,164	 	$	339	 	$	575,791	 	$	310	 	$	502,288	 	$	325	 	$	7,189,874	 	$	317	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Departmental Profit	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Rooms	 	$	313,738	 	$	166	 	$	339,109	 	$	172	 	$	468,237	 	$	245	 	$	630,055	 	$	301	 	$	405,616	 	$	219	 	$	315,823	 	$	205	 	$	5,023,017	 	$	221	 
	Food & Beverage	 	$	59,177	 	$	31	 	$	55,170	 	$	28	 	$	137,676	 	$	72	 	$	191,870	 	$	92	 	$	83,978	 	$	45	 	$	(7,181	)	$	(5	)	$	1,109,736	 	$	49	 
	Spa	 	$	18,617	 	$	10	 	$	20,155	 	$	10	 	$	17,774	 	$	9	 	$	31,967	 	$	15	 	$	17,816	 	$	10	 	$	14,203	 	$	9	 	$	230,044	 	$	10	 
	Miscellaneous	 	$	34,741	 	$	18	 	$	35,445	 	$	18	 	$	54,723	 	$	29	 	$	67,434	 	$	32	 	$	63,888	 	$	34	 	$	47,931	 	$	31	 	$	497,420	 	$	22	 
	LA Store	 	$	-	 	$	-	 	$	-	 	$	-	 	$	-	 	$	-	 	$	-	 	$	-	 	$	-	 	$	-	 	$	-	 	$	-	 	$	-	 	$	-	 
	Total Departmental Profit	 	$	426,273	 	$	226	 	$	449,879	 	$	228	 	$	678,410	 	$	355	 	$	921,326	 	$	440	 	$	571,298	 	$	308	 	$	370,775	 	$	240	 	$	6,860,216	 	$	302	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Undistributed Expenses	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Management Fees	 	$	15,484	 	$	8	 	$	15,528	 	$	8	 	$	19,934	 	$	10	 	$	24,401	 	$	12	 	$	17,183	 	$	9	 	$	13,096	 	$	8	 	$	210,550	 	$	9	 
	Administrative & General	 	$	122,242	 	$	65	 	$	113,085	 	$	57	 	$	119,808	 	$	63	 	$	131,589	 	$	63	 	$	129,915	 	$	70	 	$	120,315	 	$	78	 	$	1,478,827	 	$	65	 
	Sales & Marketing	 	$	79,819	 	$	42	 	$	80,171	 	$	41	 	$	74,933	 	$	39	 	$	91,222	 	$	44	 	$	75,322	 	$	41	 	$	73,188	 	$	47	 	$	892,330	 	$	39	 
	Engineering	 	$	85,105	 	$	45	 	$	79,916	 	$	40	 	$	86,145	 	$	45	 	$	83,217	 	$	40	 	$	74,443	 	$	40	 	$	77,897	 	$	50	 	$	967,632	 	$	43	 
	Utilities	 	$	34,228	 	$	18	 	$	31,499	 	$	16	 	$	30,705	 	$	16	 	$	30,631	 	$	15	 	$	32,838	 	$	18	 	$	40,926	 	$	27	 	$	391,015	 	$	17	 
	 	 	$	336,877	 	$	178	 	$	320,199	 	$	162	 	$	331,525	 	$	173	 	$	361,060	 	$	173	 	$	329,701	 	$	178	 	$	325,423	 	$	211	 	$	3,940,354	 	$	174	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Gross Operating Profit	 	$	89,396	 	$	47	 	$	129,680	 	$	66	 	$	346,885	 	$	181	 	$	560,266	 	$	268	 	$	241,598	 	$	130	 	$	45,353	 	$	29	 	$	2,919,862	 	$	129	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Fixed Expenses	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Property Taxes	 	$	12,622	 	$	7	 	$	12,622	 	$	6	 	$	12,622	 	$	7	 	$	12,622	 	$	6	 	$	12,772	 	$	7	 	$	12,622	 	$	8	 	$	157,659	 	$	7	 
	Insurance	 	$	15,110	 	$	8	 	$	13,610	 	$	7	 	$	13,610	 	$	7	 	$	17,666	 	$	8	 	$	16,613	 	$	9	 	$	16,835	 	$	11	 	$	180,922	 	$	8	 
	Rent	 	$	4,349	 	$	2	 	$	4,349	 	$	2	 	$	4,349	 	$	2	 	$	4,349	 	$	2	 	$	4,285	 	$	2	 	$	-	 	$	-	 	$	31,938	 	$	1	 
	Total Fixed Expenses	 	$	32,081	 	$	17	 	$	30,581	 	$	15	 	$	30,581	 	$	16	 	$	34,637	 	$	17	 	$	33,670	 	$	18	 	$	29,457	 	$	19	 	$	370,519	 	$	16	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Income Before Reserves	 	$	57,315	 	$	30	 	$	99,099	 	$	50	 	$	316,304	 	$	165	 	$	525,629	 	$	251	 	$	207,928	 	$	112	 	$	15,895	 	$	10	 	$	2,549,343	 	$	112	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Reserve for Replacement	 	$	41,290	 	$	22	 	$	41,450	 	$	21	 	$	53,305	 	$	28	 	$	65,260	 	$	31	 	$	45,884	 	$	25	 	$	34,923	 	$	23	 	$	562,004	 	$	25	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Net Operating Income	 	$	16,025	 	$	8	 	$	57,649	 	$	29	 	$	262,998	 	$	137	 	$	460,370	 	$	220	 	$	162,044	 	$	87	 	$	(19,027	)	$	(12	)	$	1,987,339	 	$	88	 

  

	 	Page 3 of 23	109.1. Ex 18(a)- 1st Part - L'Auberge_Resort March 13 Issue / Prior Yr YTD

  

    	 

    	 

     

 

L'Auberge de Sedona Resort

Current Year Budget

2012

 

Budget - 2013

  

	 	 	Year to Date	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Jan	 	 	Feb	 	 	March	 	 	April	 	 	May	 	 	June	 	 	July	 	 
	 	 	Amount	 	 	Amount	 	 	Amount	 	 	Amount	 	 	Amount	 	 	Amount	 	 	Amount	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Rooms Available	 	 	87	 	 	 	87	 	 	 	87	 	 	 	87	 	 	 	87	 	 	 	87	 	 	 	87	 	 
	Available Room Nights	 	 	2,697	 	 	 	2,436	 	 	 	2,697	 	 	 	2,610	 	 	 	2,697	 	 	 	2,610	 	 	 	2,697	 	 
	Occupied Rooms - Revenue	 	 	1,233	 	 	 	1,413	 	 	 	2,104	 	 	 	2,088	 	 	 	1,969	 	 	 	2,010	 	 	 	1,823	 	 
	Occupied Rooms - With Comps	 	 	1,233	 	 	 	1,413	 	 	 	2,104	 	 	 	2,088	 	 	 	1,969	 	 	 	2,010	 	 	 	1,823	 	 
	Occupancy	 	 	45.7	%	 	 	58.0	%	 	 	78.0	%	 	 	80.0	%	 	 	73.0	%	 	 	77.0	%	 	 	67.6	%	 
	 Average Daily Rate (ADR)	 	$	257.52	 	 	$	300.00	 	 	$	365.00	 	 	$	425.00	 	 	$	380.00	 	 	$	325.00	 	 	$	291.18	 	 
	 Revenue/Available Room (REVPAR)	 	$	117.74	 	 	$	174.00	 	 	$	284.74	 	 	$	340.00	 	 	$	277.44	 	 	$	250.28	 	 	$	196.82	 	 
	 F&B POR	 	$	133.86	 	 	$	176.93	 	 	$	165.87	 	 	$	230.42	 	 	$	269.84	 	 	$	233.58	 	 	$	191.48	 	 
	 Total Revenue Per Occupied Room	 	$	482.82	 	 	$	562.00	 	 	$	613.32	 	 	$	740.92	 	 	$	737.61	 	 	$	643.43	 	 	$	552.91	 	 
	 Total Revenue Per Occupied Room	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Revenues	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Rooms	 	 	317,522	 	 	 	423,900	 	 	 	767,960	 	 	 	887,400	 	 	 	748,220	 	 	 	653,250	 	 	 	530,819	 	 
	Food & Beverage	 	 	165,053	 	 	 	250,000	 	 	 	349,000	 	 	 	481,120	 	 	 	531,320	 	 	 	469,500	 	 	 	349,062	 	 
	Spa	 	 	63,945	 	 	 	62,386	 	 	 	92,338	 	 	 	91,933	 	 	 	90,698	 	 	 	87,866	 	 	 	73,074	 	 
	Miscellaneous	 	 	48,801	 	 	 	57,824	 	 	 	81,135	 	 	 	86,592	 	 	 	82,116	 	 	 	82,677	 	 	 	55,002	 	 
	Total Revenues	 	 	595,321	 	 	 	794,110	 	 	 	1,290,433	 	 	 	1,547,045	 	 	 	1,452,354	 	 	 	1,293,293	 	 	 	1,007,957	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Department Expenses	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Rooms	 	 	165,790	 	 	 	160,116	 	 	 	198,868	 	 	 	213,621	 	 	 	211,205	 	 	 	203,305	 	 	 	194,822	 	 
	Food & Beverage	 	 	225,020	 	 	 	239,927	 	 	 	292,553	 	 	 	350,360	 	 	 	383,338	 	 	 	361,742	 	 	 	263,822	 	 
	Spa	 	 	51,140	 	 	 	50,303	 	 	 	60,596	 	 	 	61,769	 	 	 	66,023	 	 	 	60,579	 	 	 	50,560	 	 
	Miscellaneous	 	 	15,229	 	 	 	17,800	 	 	 	26,293	 	 	 	24,593	 	 	 	24,864	 	 	 	23,405	 	 	 	27,870	 	 
	Total Department Expenses	 	 	457,179	 	 	 	468,146	 	 	 	578,310	 	 	 	650,343	 	 	 	685,430	 	 	 	649,031	 	 	 	537,074	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Departmental Profit	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Rooms	 	 	151,732	 	 	 	263,784	 	 	 	569,092	 	 	 	673,779	 	 	 	537,015	 	 	 	449,945	 	 	 	335,997	 	 
	Food & Beverage	 	 	(59,967	)	 	 	10,073	 	 	 	56,447	 	 	 	130,760	 	 	 	147,982	 	 	 	107,758	 	 	 	85,240	 	 
	Spa	 	 	12,805	 	 	 	12,083	 	 	 	31,742	 	 	 	30,164	 	 	 	24,675	 	 	 	27,287	 	 	 	22,514	 	 
	Miscellaneous	 	 	33,572	 	 	 	40,024	 	 	 	54,842	 	 	 	61,999	 	 	 	57,252	 	 	 	59,272	 	 	 	27,132	 	 
	Total Departmental Profit	 	 	138,142	 	 	 	325,964	 	 	 	712,123	 	 	 	896,702	 	 	 	766,924	 	 	 	644,262	 	 	 	470,883	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Undistributed Expenses	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Management Fees	 	 	8,930	 	 	 	11,912	 	 	 	19,357	 	 	 	23,206	 	 	 	21,785	 	 	 	19,399	 	 	 	15,119	 	 
	Administrative & General	 	 	104,700	 	 	 	115,523	 	 	 	118,321	 	 	 	138,300	 	 	 	137,161	 	 	 	133,251	 	 	 	116,231	 	 
	Sales & Marketing	 	 	75,149	 	 	 	71,077	 	 	 	71,079	 	 	 	80,507	 	 	 	72,223	 	 	 	81,845	 	 	 	74,041	 	 
	Engineering	 	 	69,743	 	 	 	75,836	 	 	 	84,087	 	 	 	100,942	 	 	 	97,920	 	 	 	84,144	 	 	 	65,238	 	 
	Utilities	 	 	36,102	 	 	 	29,700	 	 	 	31,272	 	 	 	30,835	 	 	 	35,883	 	 	 	35,814	 	 	 	35,585	 	 
	Total Undistributed Expenses	 	 	294,624	 	 	 	304,048	 	 	 	324,116	 	 	 	373,790	 	 	 	364,972	 	 	 	354,453	 	 	 	306,214	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Gross Operating Profit	 	 	(156,482	)	 	 	21,916	 	 	 	388,007	 	 	 	522,912	 	 	 	401,952	 	 	 	289,809	 	 	 	164,669	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Fixed Expenses	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Insurance	 	 	15,862	 	 	 	17,194	 	 	 	17,194	 	 	 	17,194	 	 	 	17,194	 	 	 	17,194	 	 	 	13,169	 	 
	Personal Property Taxes	 	 	1,364	 	 	 	1,364	 	 	 	1,364	 	 	 	1,364	 	 	 	1,364	 	 	 	1,364	 	 	 	761	 	 
	Real Property Taxes	 	 	10,340	 	 	 	10,340	 	 	 	10,340	 	 	 	10,340	 	 	 	10,340	 	 	 	10,340	 	 	 	9,834	 	 
	Rent	 	 	2,207	 	 	 	2,207	 	 	 	2,207	 	 	 	2,207	 	 	 	2,207	 	 	 	2,207	 	 	 	0	 	 
	Total Fixed Expenses	 	 	29,773	 	 	 	31,105	 	 	 	31,105	 	 	 	31,105	 	 	 	31,105	 	 	 	31,105	 	 	 	23,764	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Income Before Reserves	 	 	(186,255	)	 	 	(9,189	)	 	 	356,902	 	 	 	491,807	 	 	 	370,847	 	 	 	258,704	 	 	 	140,905	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Reserve for Replacement	 	 	23,813	 	 	 	31,764	 	 	 	51,617	 	 	 	61,882	 	 	 	58,094	 	 	 	51,732	 	 	 	40,318	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Net Operating Income	 	 	(210,068	)	 	 	(40,953	)	 	 	305,285	 	 	 	429,925	 	 	 	312,753	 	 	 	206,972	 	 	 	100,587	 	 

  

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	August	 	 	September	 	 	October	 	 	November	 	 	December	 	 	Total
    Year	 
	 	 	Amount	 	 	Amount	 	 	Amount	 	 	Amount	 	 	Amount	 	 	Amount	 	 	POR	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Rooms Available	 	 	87	 	 	 	87	 	 	 	87	 	 	 	87	 	 	 	87	 	 	 	87	 	 	 	 	 
	Available Room Nights	 	 	2,697	 	 	 	2,610	 	 	 	2,697	 	 	 	2,610	 	 	 	2,697	 	 	 	31,842	 	 	 	 	 
	Occupied Rooms - Revenue	 	 	2,017	 	 	 	2,150	 	 	 	2,273	 	 	 	1,973	 	 	 	1,705	 	 	 	22,758	 	 	 	 	 
	Occupied Rooms - With Comps	 	 	2,017	 	 	 	2,150	 	 	 	2,273	 	 	 	1,973	 	 	 	1,705	 	 	 	22,758	 	 	 	 	 
	Occupancy	 	 	74.8	%	 	 	82.4	%	 	 	84.3	%	 	 	75.6	%	 	 	63.2	%	 	 	71.5	%	 	 	 	 
	 Average Daily Rate (ADR)	 	$	285.56	 	 	$	367.19	 	 	$	386.09	 	 	$	326.45	 	 	$	314.28	 	 	$	340.63	 	 	 	 	 
	 Revenue/Available Room (REVPAR)	 	$	213.56	 	 	$	302.47	 	 	$	325.39	 	 	$	246.77	 	 	$	198.69	 	 	$	243.45	 	 	 	 	 
	 F&B POR	 	$	163.29	 	 	$	233.86	 	 	$	261.40	 	 	$	214.06	 	 	$	148.98	 	 	$	206.42	 	 	 	 	 
	 Total Revenue Per Occupied Room	 	$	518.11	 	 	$	666.64	 	 	$	724.07	 	 	$	614.66	 	 	$	538.45	 	 	$	625.51	 	 	 	 	 
	 Total Revenue Per Occupied Room	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Revenues	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Rooms	 	 	575,975	 	 	 	789,450	 	 	 	877,582	 	 	 	644,079	 	 	 	535,854	 	 	 	7,752,011	 	 	$	340.63	 
	Food & Beverage	 	 	329,347	 	 	 	502,799	 	 	 	594,173	 	 	 	422,345	 	 	 	254,014	 	 	 	4,697,733	 	 	$	206.42	 
	Spa	 	 	78,420	 	 	 	79,960	 	 	 	101,623	 	 	 	77,945	 	 	 	65,099	 	 	 	965,287	 	 	$	42.42	 
	Miscellaneous	 	 	61,287	 	 	 	61,076	 	 	 	72,438	 	 	 	68,363	 	 	 	63,094	 	 	 	820,405	 	 	$	36.05	 
	Total Revenues	 	 	1,045,029	 	 	 	1,433,285	 	 	 	1,645,816	 	 	 	1,212,732	 	 	 	918,061	 	 	 	14,235,436	 	 	$	625.51	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Department Expenses	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Rooms	 	 	203,860	 	 	 	189,864	 	 	 	222,411	 	 	 	210,182	 	 	 	175,933	 	 	 	2,349,977	 	 	$	103.26	 
	Food & Beverage	 	 	312,203	 	 	 	354,357	 	 	 	371,331	 	 	 	281,705	 	 	 	241,464	 	 	 	3,677,821	 	 	$	161.61	 
	Spa	 	 	59,604	 	 	 	51,291	 	 	 	72,849	 	 	 	57,652	 	 	 	52,815	 	 	 	695,181	 	 	$	30.55	 
	Miscellaneous	 	 	28,946	 	 	 	29,538	 	 	 	31,293	 	 	 	28,227	 	 	 	27,559	 	 	 	305,617	 	 	$	13.43	 
	Total Department Expenses	 	 	604,613	 	 	 	625,050	 	 	 	697,884	 	 	 	577,765	 	 	 	497,771	 	 	 	7,028,596	 	 	$	308.84	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Departmental Profit	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Rooms	 	 	372,115	 	 	 	599,586	 	 	 	655,171	 	 	 	433,897	 	 	 	359,921	 	 	 	5,402,034	 	 	$	237.37	 
	Food & Beverage	 	 	17,144	 	 	 	148,442	 	 	 	222,842	 	 	 	140,640	 	 	 	12,550	 	 	 	1,019,912	 	 	$	44.82	 
	Spa	 	 	18,816	 	 	 	28,669	 	 	 	28,774	 	 	 	20,293	 	 	 	12,284	 	 	 	270,106	 	 	$	11.87	 
	Miscellaneous	 	 	32,341	 	 	 	31,538	 	 	 	41,145	 	 	 	40,136	 	 	 	35,535	 	 	 	514,788	 	 	$	22.62	 
	Total Departmental Profit	 	 	440,416	 	 	 	808,235	 	 	 	947,932	 	 	 	634,967	 	 	 	420,290	 	 	 	7,206,840	 	 	$	316.67	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Undistributed Expenses	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Management Fees	 	 	15,675	 	 	 	21,499	 	 	 	24,687	 	 	 	18,191	 	 	 	13,771	 	 	 	213,531	 	 	$	9.38	 
	Administrative & General	 	 	112,674	 	 	 	105,936	 	 	 	131,099	 	 	 	119,488	 	 	 	131,051	 	 	 	1,463,735	 	 	$	64.32	 
	Sales & Marketing	 	 	80,515	 	 	 	84,624	 	 	 	99,028	 	 	 	78,783	 	 	 	81,446	 	 	 	950,317	 	 	$	41.76	 
	Engineering	 	 	64,644	 	 	 	74,203	 	 	 	81,429	 	 	 	61,674	 	 	 	81,028	 	 	 	940,888	 	 	$	41.34	 
	Utilities	 	 	35,950	 	 	 	37,301	 	 	 	32,242	 	 	 	30,526	 	 	 	30,947	 	 	 	402,157	 	 	$	17.67	 
	Total Undistributed Expenses	 	 	309,458	 	 	 	323,563	 	 	 	368,485	 	 	 	308,662	 	 	 	338,243	 	 	 	3,970,628	 	 	$	174.47	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Gross Operating Profit	 	 	130,958	 	 	 	484,672	 	 	 	579,447	 	 	 	326,305	 	 	 	82,047	 	 	 	3,236,212	 	 	$	142.20	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Fixed Expenses	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Insurance	 	 	13,169	 	 	 	13,169	 	 	 	13,169	 	 	 	13,169	 	 	 	13,169	 	 	 	180,846	 	 	$	7.95	 
	Personal Property Taxes	 	 	761	 	 	 	761	 	 	 	761	 	 	 	761	 	 	 	761	 	 	 	12,750	 	 	$	0.56	 
	Real Property Taxes	 	 	9,834	 	 	 	9,834	 	 	 	9,834	 	 	 	9,834	 	 	 	9,834	 	 	 	121,044	 	 	$	5.32	 
	Rent	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	13,242	 	 	$	0.58	 
	Total Fixed Expenses	 	 	23,764	 	 	 	23,764	 	 	 	23,764	 	 	 	23,764	 	 	 	23,764	 	 	 	327,882	 	 	$	14.41	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Income Before Reserves	 	 	107,194	 	 	 	460,908	 	 	 	555,683	 	 	 	302,541	 	 	 	58,283	 	 	 	2,908,330	 	 	$	127.79	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Reserve for Replacement	 	 	41,801	 	 	 	57,331	 	 	 	65,833	 	 	 	48,509	 	 	 	36,722	 	 	 	569,417	 	 	$	25.02	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Net Operating Income	 	 	65,393	 	 	 	403,577	 	 	 	489,850	 	 	 	254,032	 	 	 	21,561	 	 	 	2,338,913	 	 	$	102.77	 

  

	 	Page 4 of 23	109.1. Ex 18(a)- 1st Part - L'Auberge_Resort March 13 Issue / Budget YTD

  

    	 

    	 

     

L'Auberge de Sedona Resort

Rooms Department

Actual vs. Budget and Prior Year

March 2013

 

	 	 	Current
    Month	 
	 	 	Actual	 	 	% to

    Revenue	 	 	Budget	 	 	% to

    Revenue	 	 	Variance	 	 	% to

    Revenue	 	 	Prior Year	 	 	% to

    Revenue	 	 	Variance	 	 	% to

    Revenue	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Revenue	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4100 · Room Charges	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4110 · Transient Room charges	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4111 · Best Available
    Rate	 	$	470,338	 	 	 	55.7	%	 	$	527,311	 	 	 	68.7	%	 	$	(56,973	)	 	 	-74.2	%	 	$	510,801	 	 	 	68.7	%	 	$	(40,463	)	 	 	-40.1	%
	4112 · Complimentary	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	4113 · Corporate	 	 	13,571	 	 	 	1.6	%	 	 	10,596	 	 	 	1.4	%	 	 	2,975	 	 	 	3.9	%	 	 	10,264.00	 	 	 	1.4	%	 	 	3,307	 	 	 	3.3	%
	4114 · Discount	 	 	231,980	 	 	 	27.5	%	 	 	135,419	 	 	 	17.6	%	 	 	96,561	 	 	 	125.8	%	 	 	131,178.90	 	 	 	17.6	%	 	 	100,801	 	 	 	100.0	%
	4115 · FIT/Internet	 	 	61,784	 	 	 	7.3	%	 	 	67,679	 	 	 	8.8	%	 	 	(5,895	)	 	 	-7.7	%	 	 	65,560.10	 	 	 	8.8	%	 	 	(3,776	)	 	 	-3.7	%
	4116 · House	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	(683.93	)	 	 	-0.1	%	 	 	684	 	 	 	0.7	%
	4117 · House Posting	 	 	-	 	 	 	0.0	%	 	 	(706	)	 	 	-0.1	%	 	 	706	 	 	 	0.9	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	Total 4110 · Transient Room charges	 	 	777,673	 	 	 	92.1	%	 	 	740,298	 	 	 	96.4	%	 	 	37,375	 	 	 	48.7	%	 	 	717,120	 	 	 	96.4	%	 	 	60,552	 	 	 	60.1	%
	4118 · No Show	 	 	622	 	 	 	0.1	%	 	 	1,979	 	 	 	0.3	%	 	 	(1,357	)	 	 	-1.8	%	 	 	1,917	 	 	 	0.3	%	 	 	(1,295	)	 	 	-1.3	%
	4150 · Group	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.0	%	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.0	%
	4151 · Group Association	 	 	-	 	 	 	0.0	%	 	 	443	 	 	 	0.1	%	 	 	(443	)	 	 	-0.6	%	 	 	429	 	 	 	0.1	%	 	 	(429	)	 	 	-0.4	%
	4152 · Group Corporate	 	 	24,822	 	 	 	2.9	%	 	 	17,090	 	 	 	2.2	%	 	 	7,732	 	 	 	10.1	%	 	 	16,555	 	 	 	2.2	%	 	 	8,267	 	 	 	8.2	%
	4153 · Group Smerf	 	 	27,495	 	 	 	3.3	%	 	 	8,150	 	 	 	1.1	%	 	 	19,344	 	 	 	25.2	%	 	 	7,895	 	 	 	1.1	%	 	 	19,600	 	 	 	19.4	%
	4154 · Group Tour	 	 	14,120	 	 	 	1.7	%	 	 	-	 	 	 	0.0	%	 	 	14,120	 	 	 	18.4	%	 	 	-	 	 	 	0.0	%	 	 	14,120	 	 	 	14.0	%
	Total 4150 · Group	 	 	66,436	 	 	 	7.9	%	 	 	25,683	 	 	 	3.3	%	 	 	40,753	 	 	 	53.1	%	 	 	24,879	 	 	 	3.3	%	 	 	41,557	 	 	 	41.2	%
	Total 4100 · Room Charges	 	 	844,731	 	 	 	100.0	%	 	 	767,960	 	 	 	100.0	%	 	 	76,771	 	 	 	100.0	%	 	 	743,916	 	 	 	100.0	%	 	 	100,815	 	 	 	100.0	%
	Total Revenue	 	 	844,731	 	 	 	100.0	%	 	 	767,960	 	 	 	100.0	%	 	 	76,771	 	 	 	100.0	%	 	 	743,916	 	 	 	100.0	%	 	 	100,815	 	 	 	100.0	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Expense	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5000 · Payroll & Benefits	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5100 · Rooms Salaries & Wages	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5111000 · Front Office	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5111160 · Assistant Manager	 	 	3,966	 	 	 	0.5	%	 	 	11,255	 	 	 	1.5	%	 	 	(7,289	)	 	 	-9.5	%	 	 	2,422	 	 	 	0.3	%	 	 	1,544	 	 	 	1.5	%
	5111161 · Guest Service Supervisor	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	5111170 · Rooms Manager/ Guest
    Service Ma	 	 	5,684	 	 	 	0.7	%	 	 	-	 	 	 	0.0	%	 	 	5,684	 	 	 	7.4	%	 	 	2,871	 	 	 	0.4	%	 	 	2,813	 	 	 	2.8	%
	5111190 · Director of Rooms	 	 	6,962	 	 	 	0.8	%	 	 	-	 	 	 	0.0	%	 	 	6,962	 	 	 	9.1	%	 	 	5,962	 	 	 	0.8	%	 	 	1,000	 	 	 	1.0	%
	5111199 · Rooms Shared Services	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	5111500 · PBX Operator	 	 	3,985	 	 	 	0.5	%	 	 	-	 	 	 	0.0	%	 	 	3,985	 	 	 	5.2	%	 	 	5,442	 	 	 	0.7	%	 	 	(1,456	)	 	 	-1.4	%
	5111600 · Guest Service Agent	 	 	5,704	 	 	 	0.7	%	 	 	7,444	 	 	 	1.0	%	 	 	(1,740	)	 	 	-2.3	%	 	 	4,231	 	 	 	0.6	%	 	 	1,473	 	 	 	1.5	%
	5111601 · Concierge	 	 	3,127	 	 	 	0.4	%	 	 	4,641	 	 	 	0.6	%	 	 	(1,514	)	 	 	-2.0	%	 	 	4,641	 	 	 	0.6	%	 	 	(1,514	)	 	 	-1.5	%
	5111602 · Reservationist	 	 	9,974	 	 	 	1.2	%	 	 	15,254	 	 	 	2.0	%	 	 	(5,280	)	 	 	-6.9	%	 	 	6,561	 	 	 	0.9	%	 	 	3,412	 	 	 	3.4	%
	5111603 · Reservationist - Bonus	 	 	1,375	 	 	 	0.2	%	 	 	-	 	 	 	0.0	%	 	 	1,375	 	 	 	1.8	%	 	 	1,525	 	 	 	0.2	%	 	 	(150	)	 	 	-0.1	%
	5111610 · Valet	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	5111612 · Valet Supervisor	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	5111620 · Bellmen	 	 	1,956	 	 	 	0.2	%	 	 	6,299	 	 	 	0.8	%	 	 	(4,343	)	 	 	-5.7	%	 	 	6,299	 	 	 	0.8	%	 	 	(4,343	)	 	 	-4.3	%
	5111621 · Reservation Supervisor	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	1,409	 	 	 	0.2	%	 	 	(1,409	)	 	 	-1.4	%
	5111625 · Reservationist Manager	 	 	4,808	 	 	 	0.6	%	 	 	-	 	 	 	0.0	%	 	 	4,808	 	 	 	6.3	%	 	 	5,758	 	 	 	0.8	%	 	 	(950	)	 	 	-0.9	%
	5111640 · Night Auditor	 	 	2,532	 	 	 	0.3	%	 	 	-	 	 	 	0.0	%	 	 	2,532	 	 	 	3.3	%	 	 	3,212	 	 	 	0.4	%	 	 	(680	)	 	 	-0.7	%
	5111641 · Night Auditor Allocation	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	5111645 · Resort Historian	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	5111699 · Rooms Other Pay	 	 	-	 	 	 	0.0	%	 	 	12,038	 	 	 	1.6	%	 	 	(12,038	)	 	 	-15.7	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	Total 5111000 · Front Office	 	 	50,073	 	 	 	5.9	%	 	 	56,930	 	 	 	7.4	%	 	 	(6,857	)	 	 	-8.9	%	 	 	50,333	 	 	 	6.8	%	 	 	(261	)	 	 	-0.3	%
	5112000 · Housekeeping	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.0	%	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.0	%
	5112170 · Director of Housekeeping	 	 	6,790	 	 	 	0.8	%	 	 	5,286	 	 	 	0.7	%	 	 	1,504	 	 	 	2.0	%	 	 	5,286	 	 	 	0.7	%	 	 	1,504	 	 	 	1.5	%
	5112400 · Public Area Attendant	 	 	2,408	 	 	 	0.3	%	 	 	-	 	 	 	0.0	%	 	 	2,408	 	 	 	3.1	%	 	 	1,859	 	 	 	0.2	%	 	 	549	 	 	 	0.5	%
	5112500 · Room Attendent	 	 	17,626	 	 	 	2.1	%	 	 	18,662	 	 	 	2.4	%	 	 	(1,036	)	 	 	-1.3	%	 	 	18,662	 	 	 	2.5	%	 	 	(1,036	)	 	 	-1.0	%
	5112501 · Turn Down Attendant	 	 	3,663	 	 	 	0.4	%	 	 	-	 	 	 	0.0	%	 	 	3,663	 	 	 	4.8	%	 	 	2,247	 	 	 	0.3	%	 	 	1,415	 	 	 	1.4	%
	5112502 · Carpet Cleaner	 	 	1,265	 	 	 	0.1	%	 	 	-	 	 	 	0.0	%	 	 	1,265	 	 	 	1.6	%	 	 	2,490	 	 	 	0.3	%	 	 	(1,225	)	 	 	-1.2	%
	5112510 · House Attendant	 	 	5,764	 	 	 	0.7	%	 	 	5,848	 	 	 	0.8	%	 	 	(84	)	 	 	-0.1	%	 	 	5,848	 	 	 	0.8	%	 	 	(84	)	 	 	-0.1	%
	5112520 · Laundry Attendant	 	 	1,397	 	 	 	0.2	%	 	 	1,157	 	 	 	0.2	%	 	 	240	 	 	 	0.3	%	 	 	1,157	 	 	 	0.2	%	 	 	240	 	 	 	0.2	%
	5112530 · Lead Room Supervisor	 	 	7,701	 	 	 	0.9	%	 	 	8,526	 	 	 	1.1	%	 	 	(825	)	 	 	-1.1	%	 	 	8,526	 	 	 	1.1	%	 	 	(825	)	 	 	-0.8	%
	5112599 · Housekeeping Other Pay	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	Total 5112000 · Housekeeping	 	 	46,613	 	 	 	5.5	%	 	 	39,478	 	 	 	5.1	%	 	 	7,135	 	 	 	9.3	%	 	 	46,075	 	 	 	6.2	%	 	 	538	 	 	 	0.5	%
	Total 5100 · Rooms Salaries & Wages	 	 	96,686	 	 	 	11.4	%	 	 	96,409	 	 	 	12.6	%	 	 	277	 	 	 	0.4	%	 	 	96,409	 	 	 	13.0	%	 	 	277	 	 	 	0.3	%
	5111050 ·  Front Office Taxes & Benefits	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.0	%	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.0	%
	5151 · Rms Payroll Taxes	 	 	4,925	 	 	 	0.6	%	 	 	14,694	 	 	 	1.9	%	 	 	(9,769	)	 	 	-12.7	%	 	 	8,051	 	 	 	1.1	%	 	 	(3,125	)	 	 	-3.1	%
	5152 · Rms Workers'  Comp	 	 	4,913	 	 	 	0.6	%	 	 	1,198	 	 	 	0.2	%	 	 	3,715	 	 	 	4.8	%	 	 	526	 	 	 	0.1	%	 	 	4,387	 	 	 	4.4	%
	5153 · Rms Employ Benefits	 	 	3,950	 	 	 	0.5	%	 	 	2,182	 	 	 	0.3	%	 	 	1,768	 	 	 	2.3	%	 	 	3,281	 	 	 	0.4	%	 	 	670	 	 	 	0.7	%
	5155 · Rms PTO	 	 	5,155	 	 	 	0.6	%	 	 	3,658	 	 	 	0.5	%	 	 	1,496	 	 	 	1.9	%	 	 	2,297	 	 	 	0.3	%	 	 	2,857	 	 	 	2.8	%
	5156 · Rms Employ Meals	 	 	2,138	 	 	 	0.3	%	 	 	3,175	 	 	 	0.4	%	 	 	(1,036	)	 	 	-1.3	%	 	 	1,394	 	 	 	0.2	%	 	 	745	 	 	 	0.7	%
	5199 · Rooms Shared Services Fringes	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	5111050 · Front Office Taxes &
    Benefits - Other	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	Total 5111050 · Front Office Taxes & Benefits	 	 	21,081	 	 	 	2.5	%	 	 	24,907	 	 	 	3.2	%	 	 	(3,826	)	 	 	-5.0	%	 	 	15,548	 	 	 	2.1	%	 	 	5,534	 	 	 	5.5	%
	5112050 · Housekeeping Taxes & Benefits	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.0	%	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.0	%
	5251 · Housekeeping Payroll Taxes	 	 	6,360	 	 	 	0.8	%	 	 	-	 	 	 	0.0	%	 	 	6,360	 	 	 	8.3	%	 	 	6,644	 	 	 	0.9	%	 	 	(284	)	 	 	-0.3	%
	5252 · Housekeeping Workers' Comp	 	 	4,716	 	 	 	0.6	%	 	 	-	 	 	 	0.0	%	 	 	4,716	 	 	 	6.1	%	 	 	672	 	 	 	0.1	%	 	 	4,044	 	 	 	4.0	%
	5253 · Housekeeping Employee Benefits	 	 	286	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	286	 	 	 	0.4	%	 	 	(1,098	)	 	 	-0.1	%	 	 	1,384	 	 	 	1.4	%
	5255 · Housekeeping PTO Expense	 	 	1,629	 	 	 	0.2	%	 	 	-	 	 	 	0.0	%	 	 	1,629	 	 	 	2.1	%	 	 	1,361	 	 	 	0.2	%	 	 	268	 	 	 	0.3	%
	5256 · Housekeeping Employ Meals	 	 	2,012	 	 	 	0.2	%	 	 	-	 	 	 	0.0	%	 	 	2,012	 	 	 	2.6	%	 	 	1,781	 	 	 	0.2	%	 	 	232	 	 	 	0.2	%
	Total 5112050 · Housekeeping Taxes & Benefits	 	 	15,004	 	 	 	1.8	%	 	 	-	 	 	 	0.0	%	 	 	15,004	 	 	 	19.5	%	 	 	9,359	 	 	 	1.3	%	 	 	5,645	 	 	 	5.6	%
	Total 5000 · Payroll & Benefits	 	 	132,771	 	 	 	15.7	%	 	 	121,316	 	 	 	15.8	%	 	 	11,455	 	 	 	14.9	%	 	 	121,316	 	 	 	16.3	%	 	 	11,455	 	 	 	11.4	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.0	%	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.0	%
	8100 · Rooms  Expenses	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.0	%	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.0	%
	8110 · Guest Supplies	 	 	10,878	 	 	 	1.3	%	 	 	8,480	 	 	 	1.1	%	 	 	2,399	 	 	 	3.1	%	 	 	8,480	 	 	 	1.1	%	 	 	2,399	 	 	 	2.4	%
	8111 · In-Room Equipment	 	 	36	 	 	 	0.0	%	 	 	3,248	 	 	 	0.4	%	 	 	(3,211	)	 	 	-4.2	%	 	 	3,248	 	 	 	0.4	%	 	 	(3,211	)	 	 	-3.2	%
	8112 · Guest Relations	 	 	3,761	 	 	 	0.4	%	 	 	1,913	 	 	 	0.2	%	 	 	1,847	 	 	 	2.4	%	 	 	1,913	 	 	 	0.3	%	 	 	1,847	 	 	 	1.8	%
	8113 · VIP Guest Amenities/Promotions	 	 	6,011	 	 	 	0.7	%	 	 	-	 	 	 	0.0	%	 	 	6,011	 	 	 	7.8	%	 	 	10,493	 	 	 	1.4	%	 	 	(4,482	)	 	 	-4.4	%
	8114 · Guest Amenities	 	 	1,107	 	 	 	0.1	%	 	 	12,086	 	 	 	1.6	%	 	 	(10,979	)	 	 	-14.3	%	 	 	1,593	 	 	 	0.2	%	 	 	(486	)	 	 	-0.5	%
	8115 · Operating Supplies	 	 	1,613	 	 	 	0.2	%	 	 	1,015	 	 	 	0.1	%	 	 	598	 	 	 	0.8	%	 	 	1,015	 	 	 	0.1	%	 	 	598	 	 	 	0.6	%
	8116 · Decorations	 	 	1,283	 	 	 	0.2	%	 	 	1,647	 	 	 	0.2	%	 	 	(364	)	 	 	-0.5	%	 	 	1,647	 	 	 	0.2	%	 	 	(364	)	 	 	-0.4	%
	8117 · Newspapers	 	 	1,076	 	 	 	0.1	%	 	 	1,509	 	 	 	0.2	%	 	 	(433	)	 	 	-0.6	%	 	 	1,509	 	 	 	0.2	%	 	 	(433	)	 	 	-0.4	%
	8119 · Room Amenities	 	 	4,306	 	 	 	0.5	%	 	 	-	 	 	 	0.0	%	 	 	4,306	 	 	 	5.6	%	 	 	50	 	 	 	0.0	%	 	 	4,256	 	 	 	4.2	%
	8120 · Cleaning Supplies	 	 	1,226	 	 	 	0.1	%	 	 	2,910	 	 	 	0.4	%	 	 	(1,684	)	 	 	-2.2	%	 	 	2,910	 	 	 	0.4	%	 	 	(1,684	)	 	 	-1.7	%
	8129 · Linens/Terry	 	 	963	 	 	 	0.1	%	 	 	1,265	 	 	 	0.2	%	 	 	(302	)	 	 	-0.4	%	 	 	1,265	 	 	 	0.2	%	 	 	(302	)	 	 	-0.3	%
	8130 · Outside Laundry	 	 	22,013	 	 	 	2.6	%	 	 	21,037	 	 	 	2.7	%	 	 	976	 	 	 	1.3	%	 	 	21,107	 	 	 	2.8	%	 	 	906	 	 	 	0.9	%
	8135 · Uniforms	 	 	5,863	 	 	 	0.7	%	 	 	3,164	 	 	 	0.4	%	 	 	2,699	 	 	 	3.5	%	 	 	3,164	 	 	 	0.4	%	 	 	2,699	 	 	 	2.7	%
	8150 · TA Commissions	 	 	8,359	 	 	 	1.0	%	 	 	2,620	 	 	 	0.3	%	 	 	5,739	 	 	 	7.5	%	 	 	2,620	 	 	 	0.4	%	 	 	5,739	 	 	 	5.7	%
	8151 · Computer Maint. & Support	 	 	105	 	 	 	0.0	%	 	 	1,279	 	 	 	0.2	%	 	 	(1,174	)	 	 	-1.5	%	 	 	1,279	 	 	 	0.2	%	 	 	(1,174	)	 	 	-1.2	%
	8152 · Auto Expense	 	 	957	 	 	 	0.1	%	 	 	1,107	 	 	 	0.1	%	 	 	(150	)	 	 	-0.2	%	 	 	1,107	 	 	 	0.1	%	 	 	(150	)	 	 	-0.1	%
	8155 · Reservation Expense	 	 	8,635	 	 	 	1.0	%	 	 	2,128	 	 	 	0.3	%	 	 	6,506	 	 	 	8.5	%	 	 	2,128	 	 	 	0.3	%	 	 	6,506	 	 	 	6.5	%
	8156 · Group Commissions	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8157 · Walk Expense	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8158 · Equipment Repair	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8165 · Comp In-Room Coffee	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8170 · Contract Labor	 	 	-	 	 	 	0.0	%	 	 	450	 	 	 	0.1	%	 	 	(450	)	 	 	-0.6	%	 	 	450	 	 	 	0.1	%	 	 	(450	)	 	 	-0.4	%
	8172 · Firewood	 	 	1,000	 	 	 	0.1	%	 	 	3,616	 	 	 	0.5	%	 	 	(2,616	)	 	 	-3.4	%	 	 	3,616	 	 	 	0.5	%	 	 	(2,616	)	 	 	-2.6	%
	8174 · Music & Entertainment	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8175 · Cable TV	 	 	4,111	 	 	 	0.5	%	 	 	2,354	 	 	 	0.3	%	 	 	1,757	 	 	 	2.3	%	 	 	2,354	 	 	 	0.3	%	 	 	1,757	 	 	 	1.7	%
	8178 · Express Mail	 	 	19	 	 	 	0.0	%	 	 	307	 	 	 	0.0	%	 	 	(287	)	 	 	-0.4	%	 	 	307	 	 	 	0.0	%	 	 	(287	)	 	 	-0.3	%
	8184 · Printing	 	 	4,920	 	 	 	0.6	%	 	 	777	 	 	 	0.1	%	 	 	4,142	 	 	 	5.4	%	 	 	777	 	 	 	0.1	%	 	 	4,142	 	 	 	4.1	%
	8185 · Telephone Cell & Radio	 	 	250	 	 	 	0.0	%	 	 	250	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	250	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8186 · Equipment Repairs	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8189 · Miscellaneous Expenses	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8190 · Office Supplies	 	 	1,109	 	 	 	0.1	%	 	 	829	 	 	 	0.1	%	 	 	281	 	 	 	0.4	%	 	 	829	 	 	 	0.1	%	 	 	281	 	 	 	0.3	%
	8191 · Employee Relations &
    Training	 	 	198	 	 	 	0.0	%	 	 	345	 	 	 	0.0	%	 	 	(148	)	 	 	-0.2	%	 	 	345	 	 	 	0.0	%	 	 	(148	)	 	 	-0.1	%
	8193 · License & Permits	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8195 · Equipment	 	 	1,738	 	 	 	0.2	%	 	 	2,760	 	 	 	0.4	%	 	 	(1,022	)	 	 	-1.3	%	 	 	2,760	 	 	 	0.4	%	 	 	(1,022	)	 	 	-1.0	%
	8196 · Business Travel	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8197 · Business Meals	 	 	10	 	 	 	0.0	%	 	 	60	 	 	 	0.0	%	 	 	(50	)	 	 	-0.1	%	 	 	60	 	 	 	0.0	%	 	 	(50	)	 	 	0.0	%
	8198 · Guest meals-Reception	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8100 · Rooms  Expenses
    - Other	 	 	-	 	 	 	0.0	%	 	 	50	 	 	 	0.0	%	 	 	(50	)	 	 	-0.1	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8199 · Final Room Prep - Renovated Rms	 	 	-	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.0	%	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.0	%
	8199A · Final Room Prep - construction	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8199C · Final Rm Prep - construction	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8199 · Final Room Prep - Renovated
    Rms - Other	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	Total 8199 · Final Room Prep - Renovated Rms	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	Total 8100 · Rooms  Expenses	 	 	91,546	 	 	 	10.8	%	 	 	77,205	 	 	 	10.1	%	 	 	14,341	 	 	 	18.7	%	 	 	77,275	 	 	 	10.4	%	 	 	14,271	 	 	 	14.2	%
	8200 · Laundry Expenses	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.0	%	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.0	%
	8225 · Laundry Supplies	 	 	1,118	 	 	 	0.1	%	 	 	347	 	 	 	0.0	%	 	 	771	 	 	 	1.0	%	 	 	347	 	 	 	0.0	%	 	 	771	 	 	 	0.8	%
	8230 · Laundry Operating Equipment	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	Total 8200 · Laundry Expenses	 	 	1,118	 	 	 	0.1	%	 	 	347	 	 	 	0.0	%	 	 	771	 	 	 	1.0	%	 	 	347	 	 	 	0.0	%	 	 	771	 	 	 	0.8	%
	Total Expense	 	 	225,435	 	 	 	26.7	%	 	 	198,868	 	 	 	25.9	%	 	 	26,567	 	 	 	34.6	%	 	 	198,938	 	 	 	26.7	%	 	 	26,497	 	 	 	26.3	%
	Net Income	 	 	619,296	 	 	 	73.3	%	 	 	569,092	 	 	 	74.1	%	 	 	50,204	 	 	 	65.4	%	 	 	544,978	 	 	 	73.3	%	 	 	74,318	 	 	 	73.7	%

 

	 	 Year
    to Date	 	 	 Budget

        Full
        Year
	 
	 	Actual	 	 	% to

    Revenue	 	 	Budget	 	 	% to

    Revenue	 	 	Variance	 	 	% to

    Revenue	 	 	Prior Year	 	 	% to

    Revenue	 	 	Variance	 	 	% to

    Revenue	 	 	Amount	 	 	% to

    Revenue	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Revenue	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4100 · Room Charges	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4110 · Transient Room charges	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4111 · Best Available
    Rate	$	776,540	 	 	 	49.1	%	 	$	814,822	 	 	 	54.0	%	 	$	(38,282	)	 	 	-53.9	%	 	$	773,227	 	 	 	52.0	%	 	$	3,313	 	 	 	3.5	%	 	$	3,350,029	 	 	 	44.2	%
	4112 · Complimentary	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	4113 · Corporate	 	16,186	 	 	 	1.0	%	 	 	17,458	 	 	 	1.2	%	 	 	(1,272	)	 	 	-1.8	%	 	 	20,077	 	 	 	1.4	%	 	 	(3,890	)	 	 	-4.2	%	 	 	113,771	 	 	 	1.5	%
	4114 · Discount	 	520,722	 	 	 	32.9	%	 	 	435,572	 	 	 	28.9	%	 	 	85,150	 	 	 	119.9	%	 	 	473,262	 	 	 	31.8	%	 	 	47,460	 	 	 	50.8	%	 	 	2,810,300	 	 	 	37.1	%
	4115 · FIT/Internet	 	131,858	 	 	 	8.3	%	 	 	146,876	 	 	 	9.7	%	 	 	(15,019	)	 	 	-21.2	%	 	 	142,489	 	 	 	9.6	%	 	 	(10,632	)	 	 	-11.4	%	 	 	587,689	 	 	 	7.8	%
	4116 · House	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	849	 	 	 	0.1	%	 	 	(849	)	 	 	-0.9	%	 	 	(1,969	)	 	 	0.0	%
	4117 · House Posting	 	-	 	 	 	0.0	%	 	 	(521	)	 	 	0.0	%	 	 	521	 	 	 	0.7	%	 	 	150	 	 	 	0.0	%	 	 	(150	)	 	 	-0.2	%	 	 	150	 	 	 	0.0	%
	Total 4110 · Transient Room charges	 	1,445,306	 	 	 	91.5	%	 	 	1,414,208	 	 	 	93.7	%	 	 	31,098	 	 	 	43.8	%	 	 	1,410,053	 	 	 	94.8	%	 	 	35,252	 	 	 	37.7	%	 	 	6,859,970	 	 	 	90.6	%
	4118 · No Show	 	2,446	 	 	 	0.2	%	 	 	4,207	 	 	 	0.3	%	 	 	(1,761	)	 	 	-2.5	%	 	 	6,601	 	 	 	0.4	%	 	 	(4,154	)	 	 	-4.4	%	 	 	15,401	 	 	 	0.2	%
	4150 · Group	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.0	%	 	 	 	 	 	 	0.0	%	 	 	 	 	 	 	0.0	%	 	 	-	 	 	 	 	 
	4151 · Group Association	 	-	 	 	 	0.0	%	 	 	443	 	 	 	0.0	%	 	 	(443	)	 	 	-0.6	%	 	 	429	 	 	 	0.0	%	 	 	(429	)	 	 	-0.5	%	 	 	24,300	 	 	 	0.3	%
	4152 · Group Corporate	 	72,380	 	 	 	4.6	%	 	 	55,288	 	 	 	3.7	%	 	 	17,092	 	 	 	24.1	%	 	 	40,545	 	 	 	2.7	%	 	 	31,835	 	 	 	34.0	%	 	 	282,680	 	 	 	3.7	%
	4153 · Group Smerf	 	41,864	 	 	 	2.6	%	 	 	32,823	 	 	 	2.2	%	 	 	9,041	 	 	 	12.7	%	 	 	26,921	 	 	 	1.8	%	 	 	14,943	 	 	 	16.0	%	 	 	378,946	 	 	 	5.0	%
	4154 · Group Tour	 	18,375	 	 	 	1.2	%	 	 	2,413	 	 	 	492357.0	%	 	 	15,962	 	 	 	22.5	%	 	 	2,320	 	 	 	0.2	%	 	 	16,055	 	 	 	17.2	%	 	 	13,598	 	 	 	0.2	%
	Total 4150 · Group	 	132,618	 	 	 	8.4	%	 	 	90,967	 	 	 	6.0	%	 	 	41,651	 	 	 	58.7	%	 	 	70,215	 	 	 	4.7	%	 	 	62,403	 	 	 	66.7	%	 	 	699,524	 	 	 	9.2	%
	Total 4100 · Room Charges	 	1,580,370	 	 	 	100.0	%	 	 	1,509,382	 	 	 	100.0	%	 	 	70,988	 	 	 	100.0	%	 	 	1,486,869	 	 	 	100.0	%	 	 	93,501	 	 	 	100.0	%	 	 	7,574,894	 	 	 	100.0	%
	Total Revenue	 	1,580,370	 	 	 	100.0	%	 	 	1,509,382	 	 	 	100.0	%	 	 	70,988	 	 	 	100.0	%	 	 	1,486,869	 	 	 	100.0	%	 	 	93,501	 	 	 	100.0	%	 	 	7,574,894	 	 	 	100.0	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Expense	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5000 · Payroll & Benefits	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5100 · Rooms Salaries & Wages	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5111000 · Front Office	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5111160 · Assistant Manager	 	10,612	 	 	 	0.7	%	 	 	35,340	 	 	 	2.3	%	 	 	(24,729	)	 	 	-34.8	%	 	 	8,686	 	 	 	0.6	%	 	 	1,926	 	 	 	2.1	%	 	 	42,814	 	 	 	0.6	%
	5111161 · Guest Service Supervisor	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	5111170 · Rooms Manager/ Guest
    Service Ma	 	12,483	 	 	 	0.8	%	 	 	-	 	 	 	0.0	%	 	 	12,483	 	 	 	17.6	%	 	 	8,885	 	 	 	0.6	%	 	 	3,599	 	 	 	3.8	%	 	 	53,316	 	 	 	0.7	%
	5111190 · Director of Rooms	 	18,857	 	 	 	1.2	%	 	 	-	 	 	 	0.0	%	 	 	18,857	 	 	 	26.6	%	 	 	17,500	 	 	 	1.2	%	 	 	1,357	 	 	 	1.5	%	 	 	76,055	 	 	 	1.0	%
	5111199 · Rooms Shared Services	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	5111500 · PBX Operator	 	15,417	 	 	 	1.0	%	 	 	-	 	 	 	0.0	%	 	 	15,417	 	 	 	21.7	%	 	 	15,995	 	 	 	1.1	%	 	 	(578	)	 	 	-0.6	%	 	 	65,470	 	 	 	0.9	%
	5111600 · Guest Service Agent	 	19,395	 	 	 	1.2	%	 	 	25,621	 	 	 	1.7	%	 	 	(6,226	)	 	 	-8.8	%	 	 	16,077	 	 	 	1.1	%	 	 	3,319	 	 	 	3.5	%	 	 	74,297	 	 	 	1.0	%
	5111601 · Concierge	 	12,143	 	 	 	0.8	%	 	 	11,968	 	 	 	0.8	%	 	 	175	 	 	 	0.2	%	 	 	12,426	 	 	 	0.8	%	 	 	(283	)	 	 	-0.3	%	 	 	60,875	 	 	 	0.8	%
	5111602 · Reservationist	 	28,453	 	 	 	1.8	%	 	 	42,061	 	 	 	2.8	%	 	 	(13,608	)	 	 	-19.2	%	 	 	18,847	 	 	 	1.3	%	 	 	9,605	 	 	 	10.3	%	 	 	78,632	 	 	 	1.0	%
	5111603 · Reservationist - Bonus	 	4,525	 	 	 	0.3	%	 	 	-	 	 	 	0.0	%	 	 	4,525	 	 	 	6.4	%	 	 	4,725	 	 	 	0.3	%	 	 	(200	)	 	 	-0.2	%	 	 	14,328	 	 	 	0.2	%
	5111610 · Valet	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	222,981	 	 	 	2.9	%
	5111612 · Valet Supervisor	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	5111620 · Bellmen	 	13,689	 	 	 	0.9	%	 	 	17,650	 	 	 	1.2	%	 	 	(3,960	)	 	 	-5.6	%	 	 	18,313	 	 	 	1.2	%	 	 	(4,624	)	 	 	-4.9	%	 	 	77,051	 	 	 	1.0	%
	5111621 · Reservation Supervisor	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	5,980	 	 	 	0.4	%	 	 	(5,980	)	 	 	-6.4	%	 	 	23,051	 	 	 	0.3	%
	5111625 · Reservationist Manager	 	10,485	 	 	 	0.7	%	 	 	-	 	 	 	0.0	%	 	 	10,485	 	 	 	14.8	%	 	 	12,654	 	 	 	0.9	%	 	 	(2,169	)	 	 	-2.3	%	 	 	51,699	 	 	 	0.7	%
	5111640 · Night Auditor	 	9,226	 	 	 	0.6	%	 	 	-	 	 	 	0.0	%	 	 	9,226	 	 	 	13.0	%	 	 	9,453	 	 	 	0.6	%	 	 	(227	)	 	 	-0.2	%	 	 	40,829	 	 	 	0.5	%
	5111641 · Night Auditor Allocation	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	5111645 · Resort Historian	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	5111699 · Rooms Other Pay	 	-	 	 	 	0.0	%	 	 	33,652	 	 	 	2.2	%	 	 	(33,652	)	 	 	-47.4	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	Total 5111000 · Front Office	 	155,285	 	 	 	9.8	%	 	 	166,292	 	 	 	11.0	%	 	 	(11,007	)	 	 	-15.5	%	 	 	149,539	 	 	 	10.1	%	 	 	5,746	 	 	 	6.1	%	 	 	881,398	 	 	 	11.6	%
	5112000 · Housekeeping	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.0	%	 	 	 	 	 	 	0.0	%	 	 	 	 	 	 	0.0	%	 	 	 	 	 	 	 	 
	5112170 · Director of Housekeeping	 	18,729	 	 	 	1.2	%	 	 	15,397	 	 	 	1.0	%	 	 	3,331	 	 	 	4.7	%	 	 	15,000	 	 	 	1.0	%	 	 	3,729	 	 	 	4.0	%	 	 	65,866	 	 	 	0.9	%
	5112400 · Public Area Attendant	 	7,444	 	 	 	0.5	%	 	 	-	 	 	 	0.0	%	 	 	7,444	 	 	 	10.5	%	 	 	6,270	 	 	 	0.4	%	 	 	1,174	 	 	 	1.3	%	 	 	27,444	 	 	 	0.4	%
	5112500 · Room Attendent	 	40,251	 	 	 	2.5	%	 	 	41,762	 	 	 	2.8	%	 	 	(1,511	)	 	 	-2.1	%	 	 	43,939	 	 	 	3.0	%	 	 	(3,688	)	 	 	-3.9	%	 	 	197,719	 	 	 	2.6	%
	5112501 · Turn Down Attendant	 	7,863	 	 	 	0.5	%	 	 	-	 	 	 	0.0	%	 	 	7,863	 	 	 	11.1	%	 	 	3,215	 	 	 	0.2	%	 	 	4,648	 	 	 	5.0	%	 	 	39,047	 	 	 	0.5	%
	5112502 · Carpet Cleaner	 	4,244	 	 	 	0.3	%	 	 	-	 	 	 	0.0	%	 	 	4,244	 	 	 	6.0	%	 	 	6,118	 	 	 	0.4	%	 	 	(1,874	)	 	 	-2.0	%	 	 	13,540	 	 	 	0.2	%
	5112510 · House Attendant	 	14,361	 	 	 	0.9	%	 	 	14,453	 	 	 	1.0	%	 	 	(92	)	 	 	-0.1	%	 	 	14,974	 	 	 	1.0	%	 	 	(614	)	 	 	-0.7	%	 	 	76,448	 	 	 	1.0	%
	5112520 · Laundry Attendant	 	2,951	 	 	 	0.2	%	 	 	3,179	 	 	 	0.2	%	 	 	(228	)	 	 	-0.3	%	 	 	3,388	 	 	 	0.2	%	 	 	(437	)	 	 	-0.5	%	 	 	13,453	 	 	 	0.2	%
	5112530 · Lead Room Supervisor	 	20,769	 	 	 	1.3	%	 	 	22,663	 	 	 	1.5	%	 	 	(1,894	)	 	 	-2.7	%	 	 	22,684	 	 	 	1.5	%	 	 	(1,915	)	 	 	-2.0	%	 	 	100,122	 	 	 	1.3	%
	5112599 · Housekeeping Other Pay	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	Total 5112000 · Housekeeping	 	116,611	 	 	 	7.4	%	 	 	97,454	 	 	 	6.5	%	 	 	19,156	 	 	 	27.0	%	 	 	115,588	 	 	 	7.8	%	 	 	1,022	 	 	 	1.1	%	 	 	533,639	 	 	 	7.0	%
	Total 5100 · Rooms Salaries & Wages	 	271,896	 	 	 	17.2	%	 	 	263,746	 	 	 	17.5	%	 	 	8,149	 	 	 	11.5	%	 	 	265,128	 	 	 	17.8	%	 	 	6,768	 	 	 	7.2	%	 	 	1,415,038	 	 	 	18.7	%
	5111050 ·  Front Office Taxes & Benefits	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.0	%	 	 	 	 	 	 	0.0	%	 	 	 	 	 	 	0.0	%	 	 	 	 	 	 	 	 
	5151 · Rms Payroll Taxes	 	21,043	 	 	 	1.3	%	 	 	39,246	 	 	 	2.6	%	 	 	(18,203	)	 	 	-25.6	%	 	 	21,740	 	 	 	1.5	%	 	 	(697	)	 	 	-0.7	%	 	 	96,817	 	 	 	1.3	%
	5152 · Rms Workers'  Comp	 	7,301	 	 	 	0.5	%	 	 	4,830	 	 	 	0.3	%	 	 	2,471	 	 	 	3.5	%	 	 	1,758	 	 	 	0.1	%	 	 	5,544	 	 	 	5.9	%	 	 	8,426	 	 	 	0.1	%
	5153 · Rms Employ Benefits	 	13,879	 	 	 	0.9	%	 	 	10,920	 	 	 	0.7	%	 	 	2,959	 	 	 	4.2	%	 	 	8,898	 	 	 	0.6	%	 	 	4,981	 	 	 	5.3	%	 	 	62,045	 	 	 	0.8	%
	5155 · Rms PTO	 	6,755	 	 	 	0.4	%	 	 	8,474	 	 	 	0.6	%	 	 	(1,719	)	 	 	-2.4	%	 	 	5,222	 	 	 	0.4	%	 	 	1,533	 	 	 	1.6	%	 	 	24,657	 	 	 	0.3	%
	5156 · Rms Employ Meals	 	5,890	 	 	 	0.4	%	 	 	9,849	 	 	 	0.7	%	 	 	(3,959	)	 	 	-5.6	%	 	 	4,231	 	 	 	0.3	%	 	 	1,658	 	 	 	1.8	%	 	 	25,664	 	 	 	0.3	%
	5199 · Rooms Shared Services Fringes	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	5111050 · Front Office Taxes &
    Benefits - Other	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	Total 5111050 · Front Office Taxes & Benefits	 	54,867	 	 	 	3.5	%	 	 	73,319	 	 	 	4.9	%	 	 	(18,451	)	 	 	-26.0	%	 	 	41,848	 	 	 	2.8	%	 	 	13,019	 	 	 	13.9	%	 	 	217,609	 	 	 	2.9	%
	5112050 · Housekeeping Taxes & Benefits	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.0	%	 	 	 	 	 	 	0.0	%	 	 	 	 	 	 	0.0	%	 	 	 	 	 	 	 	 
	5251 · Housekeeping Payroll Taxes	 	16,242	 	 	 	1.0	%	 	 	-	 	 	 	0.0	%	 	 	16,242	 	 	 	22.9	%	 	 	15,504	 	 	 	1.0	%	 	 	738	 	 	 	0.8	%	 	 	58,969	 	 	 	0.8	%
	5252 · Housekeeping Workers' Comp	 	6,964	 	 	 	0.4	%	 	 	-	 	 	 	0.0	%	 	 	6,964	 	 	 	9.8	%	 	 	2,185	 	 	 	0.1	%	 	 	4,779	 	 	 	5.1	%	 	 	7,919	 	 	 	0.1	%
	5253 · Housekeeping Employee Benefits	 	1,461	 	 	 	0.1	%	 	 	-	 	 	 	0.0	%	 	 	1,461	 	 	 	2.1	%	 	 	40	 	 	 	0.0	%	 	 	1,421	 	 	 	1.5	%	 	 	1,304	 	 	 	0.0	%
	5255 · Housekeeping PTO Expense	 	3,861	 	 	 	0.2	%	 	 	-	 	 	 	0.0	%	 	 	3,861	 	 	 	5.4	%	 	 	2,702	 	 	 	0.2	%	 	 	1,159	 	 	 	1.2	%	 	 	9,740	 	 	 	0.1	%
	5256 · Housekeeping Employ Meals	 	5,543	 	 	 	0.4	%	 	 	-	 	 	 	0.0	%	 	 	5,543	 	 	 	7.8	%	 	 	5,269	 	 	 	0.4	%	 	 	274	 	 	 	0.3	%	 	 	24,154	 	 	 	0.3	%
	Total 5112050 · Housekeeping Taxes & Benefits	 	34,072	 	 	 	2.2	%	 	 	-	 	 	 	0.0	%	 	 	34,072	 	 	 	48.0	%	 	 	25,700	 	 	 	1.7	%	 	 	8,372	 	 	 	9.0	%	 	 	102,086	 	 	 	1.3	%
	Total 5000 · Payroll & Benefits	 	360,835	 	 	 	22.8	%	 	 	337,065	 	 	 	22.3	%	 	 	23,770	 	 	 	33.5	%	 	 	332,677	 	 	 	22.4	%	 	 	28,158	 	 	 	30.1	%	 	 	1,734,733	 	 	 	22.9	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.0	%	 	 	 	 	 	 	0.0	%	 	 	 	 	 	 	0.0	%	 	 	 	 	 	 	 	 
	8100 · Rooms  Expenses	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.0	%	 	 	 	 	 	 	0.0	%	 	 	 	 	 	 	0.0	%	 	 	 	 	 	 	 	 
	8110 · Guest Supplies	 	27,119	 	 	 	1.7	%	 	 	29,330	 	 	 	1.9	%	 	 	(2,211	)	 	 	-3.1	%	 	 	26,917	 	 	 	1.8	%	 	 	202	 	 	 	0.2	%	 	 	141,408	 	 	 	1.9	%
	8111 · In-Room Equipment	 	36	 	 	 	0.0	%	 	 	5,511	 	 	 	0.4	%	 	 	(5,475	)	 	 	-7.7	%	 	 	8,146	 	 	 	0.5	%	 	 	(8,110	)	 	 	-8.7	%	 	 	32,683	 	 	 	0.4	%
	8112 · Guest Relations	 	6,274	 	 	 	0.4	%	 	 	5,761	 	 	 	0.4	%	 	 	513	 	 	 	0.7	%	 	 	6,547	 	 	 	0.4	%	 	 	(273	)	 	 	-0.3	%	 	 	44,814	 	 	 	0.6	%
	8113 · VIP Guest Amenities/Promotions	 	10,025	 	 	 	0.6	%	 	 	-	 	 	 	0.0	%	 	 	10,025	 	 	 	14.1	%	 	 	10,493	 	 	 	0.7	%	 	 	(468	)	 	 	-0.5	%	 	 	18,369	 	 	 	0.2	%
	8114 · Guest Amenities	 	2,904	 	 	 	0.2	%	 	 	14,678	 	 	 	1.0	%	 	 	(11,773	)	 	 	-16.6	%	 	 	3,223	 	 	 	0.2	%	 	 	(318	)	 	 	-0.3	%	 	 	11,694	 	 	 	0.2	%
	8115 · Operating Supplies	 	3,734	 	 	 	0.2	%	 	 	5,535	 	 	 	0.4	%	 	 	(1,801	)	 	 	-2.5	%	 	 	5,509	 	 	 	0.4	%	 	 	(1,775	)	 	 	-1.9	%	 	 	19,271	 	 	 	0.3	%
	8116 · Decorations	 	4,375	 	 	 	0.3	%	 	 	5,313	 	 	 	0.4	%	 	 	(938	)	 	 	-1.3	%	 	 	2,662	 	 	 	0.2	%	 	 	1,713	 	 	 	1.8	%	 	 	16,832	 	 	 	0.2	%
	8117 · Newspapers	 	3,163	 	 	 	0.2	%	 	 	3,193	 	 	 	0.2	%	 	 	(30	)	 	 	0.0	%	 	 	3,477	 	 	 	0.2	%	 	 	(313	)	 	 	-0.3	%	 	 	21,864	 	 	 	0.3	%
	8119 · Room Amenities	 	4,306	 	 	 	0.3	%	 	 	-	 	 	 	0.0	%	 	 	4,306	 	 	 	6.1	%	 	 	50	 	 	 	0.0	%	 	 	4,256	 	 	 	4.6	%	 	 	50	 	 	 	0.0	%
	8120 · Cleaning Supplies	 	3,358	 	 	 	0.2	%	 	 	5,031	 	 	 	0.3	%	 	 	(1,673	)	 	 	-2.4	%	 	 	4,621	 	 	 	0.3	%	 	 	(1,263	)	 	 	-1.4	%	 	 	16,765	 	 	 	0.2	%
	8129 · Linens/Terry	 	1,862	 	 	 	0.1	%	 	 	1,270	 	 	 	0.1	%	 	 	592	 	 	 	0.8	%	 	 	2,770	 	 	 	0.2	%	 	 	(908	)	 	 	-1.0	%	 	 	8,754	 	 	 	0.1	%
	8130 · Outside Laundry	 	52,691	 	 	 	3.3	%	 	 	51,918	 	 	 	3.4	%	 	 	773	 	 	 	1.1	%	 	 	53,506	 	 	 	3.6	%	 	 	(815	)	 	 	-0.9	%	 	 	240,722	 	 	 	3.2	%
	8135 · Uniforms	 	10,971	 	 	 	0.7	%	 	 	6,494	 	 	 	0.4	%	 	 	4,476	 	 	 	6.3	%	 	 	6,996	 	 	 	0.5	%	 	 	3,975	 	 	 	4.3	%	 	 	37,242	 	 	 	0.5	%
	8150 · TA Commissions	 	12,844	 	 	 	0.8	%	 	 	7,071	 	 	 	0.5	%	 	 	5,773	 	 	 	8.1	%	 	 	7,942	 	 	 	0.5	%	 	 	4,901	 	 	 	5.2	%	 	 	64,767	 	 	 	0.9	%
	8151 · Computer Maint. & Support	 	405	 	 	 	0.0	%	 	 	2,583	 	 	 	0.2	%	 	 	(2,178	)	 	 	-3.1	%	 	 	3,837	 	 	 	0.3	%	 	 	(3,432	)	 	 	-3.7	%	 	 	11,792	 	 	 	0.2	%
	8152 · Auto Expense	 	1,779	 	 	 	0.1	%	 	 	2,205	 	 	 	0.1	%	 	 	(425	)	 	 	-0.6	%	 	 	2,326	 	 	 	0.2	%	 	 	(547	)	 	 	-0.6	%	 	 	8,434	 	 	 	0.1	%
	8155 · Reservation Expense	 	15,871	 	 	 	1.0	%	 	 	7,988	 	 	 	0.5	%	 	 	7,882	 	 	 	11.1	%	 	 	7,814	 	 	 	0.5	%	 	 	8,057	 	 	 	8.6	%	 	 	32,504	 	 	 	0.4	%
	8156 · Group Commissions	 	-	 	 	 	0.0	%	 	 	251	 	 	 	0.0	%	 	 	(251	)	 	 	-0.4	%	 	 	3,310	 	 	 	0.2	%	 	 	(3,310	)	 	 	-3.5	%	 	 	12,836	 	 	 	0.2	%
	8157 · Walk Expense	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8158 · Equipment Repair	 	15	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	15	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	15	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8165 · Comp In-Room Coffee	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8170 · Contract Labor	 	-	 	 	 	0.0	%	 	 	450	 	 	 	0.0	%	 	 	(450	)	 	 	-0.6	%	 	 	450	 	 	 	0.0	%	 	 	(450	)	 	 	-0.5	%	 	 	450	 	 	 	0.0	%
	8172 · Firewood	 	5,986	 	 	 	0.4	%	 	 	9,868	 	 	 	0.7	%	 	 	(3,882	)	 	 	-5.5	%	 	 	9,273	 	 	 	0.6	%	 	 	(3,287	)	 	 	-3.5	%	 	 	20,488	 	 	 	0.3	%
	8174 · Music & Entertainment	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8175 · Cable TV	 	9,716	 	 	 	0.6	%	 	 	7,409	 	 	 	0.5	%	 	 	2,307	 	 	 	3.2	%	 	 	6,762	 	 	 	0.5	%	 	 	2,953	 	 	 	3.2	%	 	 	42,364	 	 	 	0.6	%
	8178 · Express Mail	 	333	 	 	 	0.0	%	 	 	667	 	 	 	0.0	%	 	 	(335	)	 	 	-0.5	%	 	 	528	 	 	 	0.0	%	 	 	(196	)	 	 	-0.2	%	 	 	2,033	 	 	 	0.0	%
	8184 · Printing	 	6,848	 	 	 	898071.0	%	 	 	1,857	 	 	 	0.1	%	 	 	4,991	 	 	 	7.0	%	 	 	2,669	 	 	 	0.2	%	 	 	4,178	 	 	 	4.5	%	 	 	20,130	 	 	 	0.3	%
	8185 · Telephone Cell & Radio	 	750	 	 	 	0.0	%	 	 	704	 	 	 	0.0	%	 	 	46	 	 	 	0.1	%	 	 	700	 	 	 	0.0	%	 	 	50	 	 	 	0.1	%	 	 	5,117	 	 	 	0.1	%
	8186 · Equipment Repairs	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8189 · Miscellaneous Expenses	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	175	 	 	 	0.0	%	 	 	(175	)	 	 	-0.2	%	 	 	497	 	 	 	0.0	%
	8190 · Office Supplies	 	2,447	 	 	 	0.2	%	 	 	3,052	 	 	 	0.2	%	 	 	(605	)	 	 	-0.9	%	 	 	3,382	 	 	 	0.2	%	 	 	(935	)	 	 	-1.0	%	 	 	11,875	 	 	 	0.2	%
	8191 · Employee Relations &
    Training	 	554	 	 	 	0.0	%	 	 	653	 	 	 	0.0	%	 	 	(98	)	 	 	-0.1	%	 	 	650	 	 	 	0.0	%	 	 	(96	)	 	 	-0.1	%	 	 	1,789	 	 	 	0.0	%
	8193 · License & Permits	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8195 · Equipment	 	5,214	 	 	 	0.3	%	 	 	6,475	 	 	 	0.4	%	 	 	(1,261	)	 	 	-1.8	%	 	 	6,436	 	 	 	0.4	%	 	 	(1,222	)	 	 	-1.3	%	 	 	38,723	 	 	 	0.5	%
	8196 · Business Travel	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8197 · Business Meals	 	33	 	 	 	0.0	%	 	 	206	 	 	 	0.0	%	 	 	(173	)	 	 	-0.2	%	 	 	180	 	 	 	0.0	%	 	 	(148	)	 	 	-0.2	%	 	 	810	 	 	 	0.0	%
	8198 · Guest meals-Reception	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8100 · Rooms  Expenses
    - Other	 	581	 	 	 	0.0	%	 	 	810	 	 	 	0.1	%	 	 	(229	)	 	 	-0.3	%	 	 	-	 	 	 	0.0	%	 	 	581	 	 	 	0.6	%	 	 	-	 	 	 	0.0	%
	8199 · Final Room Prep - Renovated Rms	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.0	%	 	 	 	 	 	 	0.0	%	 	 	 	 	 	 	0.0	%	 	 	-	 	 	 	 	 
	8199A · Final Room Prep - construction	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8199C · Final Rm Prep - construction	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8199 · Final Room Prep - Renovated
    Rms - Other	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	Total 8199 · Final Room Prep - Renovated Rms	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	Total 8100 · Rooms  Expenses	 	194,194	 	 	 	12.3	%	 	 	186,283	 	 	 	12.3	%	 	 	7,910	 	 	 	11.1	%	 	 	191,353	 	 	 	12.9	%	 	 	2,841	 	 	 	3.0	%	 	 	885,076	 	 	 	11.7	%
	8200 · Laundry Expenses	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.0	%	 	 	 	 	 	 	0.0	%	 	 	 	 	 	 	0.0	%	 	 	 	 	 	 	 	 
	8225 · Laundry Supplies	 	2,122	 	 	 	0.1	%	 	 	1,426	 	 	 	0.1	%	 	 	696	 	 	 	1.0	%	 	 	1,000	 	 	 	0.1	%	 	 	1,123	 	 	 	1.2	%	 	 	1,663	 	 	 	0.0	%
	8230 · Laundry Operating Equipment	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	791	 	 	 	0.0	%
	Total 8200 · Laundry Expenses	 	2,122	 	 	 	0.1	%	 	 	1,426	 	 	 	0.1	%	 	 	696	 	 	 	1.0	%	 	 	1,000	 	 	 	0.1	%	 	 	1,123	 	 	 	1.2	%	 	 	2,454	 	 	 	0.0	%
	Total Expense	 	557,151	 	 	 	35.3	%	 	 	524,775	 	 	 	34.8	%	 	 	32,376	 	 	 	45.6	%	 	 	525,029	 	 	 	35.3	%	 	 	32,122	 	 	 	34.4	%	 	 	2,622,264	 	 	 	34.6	%
	Net Income	 	1,023,219	 	 	 	64.7	%	 	 	984,607	 	 	 	65.2	%	 	 	38,612	 	 	 	54.4	%	 	 	961,840	 	 	 	64.7	%	 	 	61,379	 	 	 	65.6	%	 	 	4,952,631	 	 	 	65.4	%

 

	 	Page 5 of 23	109.1. Ex 18(a)- 1st Part - L'Auberge_Resort March 13 Issue

 

 

 

    	 

    	 

     

L'Auberge de Sedona, LLC.

Rooms Department

January through March 2013

 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	TOTAL	 
	 	 	Jan
    13	 	 	%
    of Income	 	 	Feb
    13	 	 	%
    of Income	 	 	Mar
    13	 	 	%
    of Income	 	 	Jan
    - Mar 13	 	 	%
    of Income	 
	Ordinary Income/Expense	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Income	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4100 ·
    Room Charges	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4110 ·
    Transient Room charges	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4111
    · Best Available Rate	 	 	114,998.81	 	 	 	36.22	%	 	 	191,202.74	 	 	 	45.73	%	 	 	470,338.10	 	 	 	55.68	%	 	 	776,539.65	 	 	 	49.14	%
	4113 · Corporate	 	 	1,706.20	 	 	 	0.54	%	 	 	909.15	 	 	 	0.22	%	 	 	13,571.00	 	 	 	1.61	%	 	 	16,186.35	 	 	 	1.02	%
	4114 · Discount	 	 	117,710.60	 	 	 	37.07	%	 	 	171,031.55	 	 	 	40.91	%	 	 	231,980.01	 	 	 	27.46	%	 	 	520,722.16	 	 	 	32.95	%
	4115
    · FIT/Internet	 	 	33,309.63	 	 	 	10.49	%	 	 	36,764.37	 	 	 	8.79	%	 	 	61,783.66	 	 	 	7.31	%	 	 	131,857.66	 	 	 	8.34	%
	Total 4110
    · Transient Room charges	 	 	267,725.24	 	 	 	84.32	%	 	 	399,907.81	 	 	 	95.65	%	 	 	777,672.77	 	 	 	92.06	%	 	 	1,445,305.82	 	 	 	91.45	%
	4118 ·
    No Show	 	 	954.00	 	 	 	0.3	%	 	 	870.00	 	 	 	0.21	%	 	 	622.15	 	 	 	0.07	%	 	 	2,446.15	 	 	 	0.16	%
	4150 · Group	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4152 ·
    Group Corporate	 	 	38,198.00	 	 	 	12.03	%	 	 	9,360.00	 	 	 	2.24	%	 	 	24,821.60	 	 	 	2.94	%	 	 	72,379.60	 	 	 	4.58	%
	4153 ·
    Group Smerf	 	 	10,645.00	 	 	 	3.35	%	 	 	3,724.00	 	 	 	0.89	%	 	 	27,494.60	 	 	 	3.26	%	 	 	41,863.60	 	 	 	2.65	%
	4154
    · Group Tour	 	 	0.00	 	 	 	0.0	%	 	 	4,255.00	 	 	 	1.02	%	 	 	14,120.00	 	 	 	1.67	%	 	 	18,375.00	 	 	 	1.16	%
	Total
    4150 · Group	 	 	48,843.00	 	 	 	15.38	%	 	 	17,339.00	 	 	 	4.15	%	 	 	66,436.20	 	 	 	7.87	%	 	 	132,618.20	 	 	 	8.39	%
	Total
    4100 · Room Charges	 	 	317,522.24	 	 	 	100.0	%	 	 	418,116.81	 	 	 	100.0	%	 	 	844,731.12	 	 	 	100.0	%	 	 	1,580,370.17	 	 	 	100.0	%
	Total
    Income	 	 	317,522.24	 	 	 	100.0	%	 	 	418,116.81	 	 	 	100.0	%	 	 	844,731.12	 	 	 	100.0	%	 	 	1,580,370.17	 	 	 	100.0	%
	Gross Profit	 	 	317,522.24	 	 	 	100.0	%	 	 	418,116.81	 	 	 	100.0	%	 	 	844,731.12	 	 	 	100.0	%	 	 	1,580,370.17	 	 	 	100.0	%
	Expense	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5000 ·
    Payroll & Benefits	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5100 ·
    Rooms Salaries & Wages	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5111000
    · Front Office	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5111160
    · Assistant Manager	 	 	3,415.24	 	 	 	1.08	%	 	 	3,230.78	 	 	 	0.77	%	 	 	3,965.63	 	 	 	0.47	%	 	 	10,611.65	 	 	 	0.67	%
	5111170
    · Rooms Manager/ Guest Service Ma	 	 	4,683.78	 	 	 	1.48	%	 	 	2,115.39	 	 	 	0.51	%	 	 	5,684.17	 	 	 	0.67	%	 	 	12,483.34	 	 	 	0.79	%
	5111190 · Director
    of Rooms	 	 	5,755.62	 	 	 	1.81	%	 	 	6,139.62	 	 	 	1.47	%	 	 	6,961.93	 	 	 	0.82	%	 	 	18,857.17	 	 	 	1.19	%
	5111500
    · PBX Operator	 	 	5,108.64	 	 	 	1.61	%	 	 	6,322.79	 	 	 	1.51	%	 	 	3,985.32	 	 	 	0.47	%	 	 	15,416.75	 	 	 	0.98	%
	5111600
    · Guest Service Agent	 	 	5,919.13	 	 	 	1.86	%	 	 	7,772.32	 	 	 	1.86	%	 	 	5,703.69	 	 	 	0.68	%	 	 	19,395.14	 	 	 	1.23	%
	5111601 · Concierge	 	 	3,388.02	 	 	 	1.07	%	 	 	5,628.31	 	 	 	1.35	%	 	 	3,126.95	 	 	 	0.37	%	 	 	12,143.28	 	 	 	0.77	%
	5111602 · Reservationist	 	 	10,021.76	 	 	 	3.16	%	 	 	8,457.21	 	 	 	2.02	%	 	 	9,973.66	 	 	 	1.18	%	 	 	28,452.63	 	 	 	1.8	%
	5111603
    · Reservationist - Bonus	 	 	1,675.00	 	 	 	0.53	%	 	 	1,475.00	 	 	 	0.35	%	 	 	1,375.00	 	 	 	0.16	%	 	 	4,525.00	 	 	 	0.29	%
	5111620 · Bellmen	 	 	5,195.51	 	 	 	1.64	%	 	 	6,537.48	 	 	 	1.56	%	 	 	1,956.17	 	 	 	0.23	%	 	 	13,689.16	 	 	 	0.87	%
	5111625
    · Reservationist Manager	 	 	2,446.00	 	 	 	0.77	%	 	 	3,230.78	 	 	 	0.77	%	 	 	4,807.93	 	 	 	0.57	%	 	 	10,484.71	 	 	 	0.66	%
	5111640
    · Night Auditor	 	 	3,273.84	 	 	 	1.03	%	 	 	3,420.03	 	 	 	0.82	%	 	 	2,532.29	 	 	 	0.3	%	 	 	9,226.16	 	 	 	0.58	%
	Total 5111000
    · Front Office	 	 	50,882.54	 	 	 	16.03	%	 	 	54,329.71	 	 	 	12.99	%	 	 	50,072.74	 	 	 	5.93	%	 	 	155,284.99	 	 	 	9.83	%
	5112000 · Housekeeping	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5112170 · Director
    of Housekeeping	 	 	5,035.00	 	 	 	1.59	%	 	 	6,903.85	 	 	 	1.65	%	 	 	6,789.86	 	 	 	0.8	%	 	 	18,728.71	 	 	 	1.19	%
	5112400
    · Public Area Attendant	 	 	2,819.57	 	 	 	0.89	%	 	 	2,215.99	 	 	 	0.53	%	 	 	2,408.13	 	 	 	0.29	%	 	 	7,443.69	 	 	 	0.47	%
	5112500
    · Room Attendent	 	 	10,518.81	 	 	 	3.31	%	 	 	12,106.09	 	 	 	2.9	%	 	 	17,626.03	 	 	 	2.09	%	 	 	40,250.93	 	 	 	2.55	%
	5112501
    · Turn Down Attendant	 	 	1,650.88	 	 	 	0.52	%	 	 	2,549.04	 	 	 	0.61	%	 	 	3,662.72	 	 	 	0.43	%	 	 	7,862.64	 	 	 	0.5	%
	5112502
    · Carpet Cleaner	 	 	1,579.63	 	 	 	0.5	%	 	 	1,398.70	 	 	 	0.34	%	 	 	1,265.18	 	 	 	0.15	%	 	 	4,243.51	 	 	 	0.27	%
	5112510
    · House Attendant	 	 	3,980.26	 	 	 	1.25	%	 	 	4,616.32	 	 	 	1.1	%	 	 	5,763.93	 	 	 	0.68	%	 	 	14,360.51	 	 	 	0.91	%
	5112520
    · Laundry Attendant	 	 	847.38	 	 	 	0.27	%	 	 	707.13	 	 	 	0.17	%	 	 	1,396.64	 	 	 	0.17	%	 	 	2,951.15	 	 	 	0.19	%
	5112530
    · Lead Room Supervisor	 	 	7,024.63	 	 	 	2.21	%	 	 	6,044.18	 	 	 	1.45	%	 	 	7,700.64	 	 	 	0.91	%	 	 	20,769.45	 	 	 	1.31	%
	Total
    5112000 · Housekeeping	 	 	33,456.16	 	 	 	10.54	%	 	 	36,541.30	 	 	 	8.74	%	 	 	46,613.13	 	 	 	5.52	%	 	 	116,610.59	 	 	 	7.38	%
	Total 5100
    · Rooms Salaries & Wages	 	 	84,338.70	 	 	 	26.56	%	 	 	90,871.01	 	 	 	21.73	%	 	 	96,685.87	 	 	 	11.45	%	 	 	271,895.58	 	 	 	17.21	%
	5111050
    · Front Office Taxes & Benefits	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5151 ·
    Rms Payroll Taxes	 	 	7,771.24	 	 	 	2.45	%	 	 	8,346.08	 	 	 	2.0	%	 	 	4,925.26	 	 	 	0.58	%	 	 	21,042.58	 	 	 	1.33	%
	5152 ·
    Rms Workers'  Comp	 	 	1,194.00	 	 	 	0.38	%	 	 	1,194.00	 	 	 	0.29	%	 	 	4,913.29	 	 	 	0.58	%	 	 	7,301.29	 	 	 	0.46	%
	5153 ·
    Rms Employ Benefits	 	 	4,861.62	 	 	 	1.53	%	 	 	5,067.32	 	 	 	1.21	%	 	 	3,950.14	 	 	 	0.47	%	 	 	13,879.08	 	 	 	0.88	%
	5155 ·
    Rms PTO	 	 	1,600.48	 	 	 	0.5	%	 	 	0.00	 	 	 	0.0	%	 	 	5,154.50	 	 	 	0.61	%	 	 	6,754.98	 	 	 	0.43	%
	5156
    · Rms Employ Meals	 	 	1,823.14	 	 	 	0.57	%	 	 	1,928.15	 	 	 	0.46	%	 	 	2,138.23	 	 	 	0.25	%	 	 	5,889.52	 	 	 	0.37	%
	Total 5111050
    · Front Office Taxes & Benefits	 	 	17,250.48	 	 	 	5.43	%	 	 	16,535.55	 	 	 	3.96	%	 	 	21,081.42	 	 	 	2.5	%	 	 	54,867.45	 	 	 	3.47	%
	5112050
    · Housekeeping Taxes & Benefits	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5251 ·
    Housekeeping Payroll Taxes	 	 	5,708.14	 	 	 	1.8	%	 	 	4,174.08	 	 	 	1.0	%	 	 	6,360.10	 	 	 	0.75	%	 	 	16,242.32	 	 	 	1.03	%
	5252 ·
    Housekeeping Workers' Comp	 	 	1,124.00	 	 	 	0.35	%	 	 	1,124.00	 	 	 	0.27	%	 	 	4,716.11	 	 	 	0.56	%	 	 	6,964.11	 	 	 	0.44	%
	5253 ·
    Housekeeping Employee Benefits	 	 	370.65	 	 	 	0.12	%	 	 	804.44	 	 	 	0.19	%	 	 	286.08	 	 	 	0.03	%	 	 	1,461.17	 	 	 	0.09	%
	5255 ·
    Housekeeping PTO Expense	 	 	1,044.50	 	 	 	0.33	%	 	 	1,187.35	 	 	 	0.28	%	 	 	1,629.41	 	 	 	0.19	%	 	 	3,861.26	 	 	 	0.24	%
	5256
    · Housekeeping Employ Meals	 	 	1,715.89	 	 	 	0.54	%	 	 	1,814.73	 	 	 	0.43	%	 	 	2,012.45	 	 	 	0.24	%	 	 	5,543.07	 	 	 	0.35	%
	Total
    5112050 · Housekeeping Taxes & Benefits	 	 	9,963.18	 	 	 	3.14	%	 	 	9,104.60	 	 	 	2.18	%	 	 	15,004.15	 	 	 	1.78	%	 	 	34,071.93	 	 	 	2.16	%
	Total 5000
    · Payroll & Benefits	 	 	111,552.36	 	 	 	35.13	%	 	 	116,511.16	 	 	 	27.87	%	 	 	132,771.44	 	 	 	15.72	%	 	 	360,834.96	 	 	 	22.83	%
	8100 ·
    Rooms  Expenses	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	8110 ·
    Guest Supplies	 	 	9,851.30	 	 	 	3.1	%	 	 	6,389.49	 	 	 	1.53	%	 	 	10,878.46	 	 	 	1.29	%	 	 	27,119.25	 	 	 	1.72	%
	8111 · In-Room Equipment	 	 	0.00	 	 	 	0.0	%	 	 	0.00	 	 	 	0.0	%	 	 	36.39	 	 	 	0.0	%	 	 	36.39	 	 	 	0.0	%
	8112 ·
    Guest Relations	 	 	1,162.47	 	 	 	0.37	%	 	 	1,350.88	 	 	 	0.32	%	 	 	3,760.52	 	 	 	0.45	%	 	 	6,273.87	 	 	 	0.4	%
	8113 ·
    VIP Guest Amenities/Promotions	 	 	1,731.75	 	 	 	0.55	%	 	 	2,282.00	 	 	 	0.55	%	 	 	6,011.40	 	 	 	0.71	%	 	 	10,025.15	 	 	 	0.63	%
	8114 ·
    Guest Amenities	 	 	210.38	 	 	 	0.07	%	 	 	1,586.90	 	 	 	0.38	%	 	 	1,107.17	 	 	 	0.13	%	 	 	2,904.45	 	 	 	0.18	%
	8115 ·
    Operating Supplies	 	 	1,386.87	 	 	 	0.44	%	 	 	733.42	 	 	 	0.18	%	 	 	1,613.21	 	 	 	0.19	%	 	 	3,733.50	 	 	 	0.24	%
	8116 · Decorations	 	 	2,725.25	 	 	 	0.86	%	 	 	367.72	 	 	 	0.09	%	 	 	1,282.51	 	 	 	0.15	%	 	 	4,375.48	 	 	 	0.28	%
	8117 · Newspapers	 	 	763.17	 	 	 	0.24	%	 	 	1,324.38	 	 	 	0.32	%	 	 	1,075.57	 	 	 	0.13	%	 	 	3,163.12	 	 	 	0.2	%
	8119 ·
    Room Amenities	 	 	0.00	 	 	 	0.0	%	 	 	0.00	 	 	 	0.0	%	 	 	4,306.14	 	 	 	0.51	%	 	 	4,306.14	 	 	 	0.27	%
	8120 ·
    Cleaning Supplies	 	 	1,257.20	 	 	 	0.4	%	 	 	874.82	 	 	 	0.21	%	 	 	1,225.69	 	 	 	0.15	%	 	 	3,357.71	 	 	 	0.21	%
	8129 ·
    Linens/Terry	 	 	0.00	 	 	 	0.0	%	 	 	898.87	 	 	 	0.22	%	 	 	963.41	 	 	 	0.11	%	 	 	1,862.28	 	 	 	0.12	%
	8130 ·
    Outside Laundry	 	 	16,094.95	 	 	 	5.07	%	 	 	14,583.21	 	 	 	3.49	%	 	 	22,013.09	 	 	 	2.61	%	 	 	52,691.25	 	 	 	3.33	%
	8135 · Uniforms	 	 	1,176.83	 	 	 	0.37	%	 	 	3,931.28	 	 	 	0.94	%	 	 	5,862.78	 	 	 	0.69	%	 	 	10,970.89	 	 	 	0.69	%
	8150 ·
    TA Commissions	 	 	2,874.96	 	 	 	0.91	%	 	 	1,609.97	 	 	 	0.39	%	 	 	8,358.68	 	 	 	0.99	%	 	 	12,843.61	 	 	 	0.81	%
	8151 ·
    Computer Maint. & Support	 	 	0.00	 	 	 	0.0	%	 	 	300.00	 	 	 	0.07	%	 	 	105.00	 	 	 	0.01	%	 	 	405.00	 	 	 	0.03	%
	8152 ·
    Auto Expense	 	 	402.29	 	 	 	0.13	%	 	 	420.51	 	 	 	0.1	%	 	 	956.61	 	 	 	0.11	%	 	 	1,779.41	 	 	 	0.11	%
	8155 ·
    Reservation Expense	 	 	3,144.70	 	 	 	0.99	%	 	 	4,091.18	 	 	 	0.98	%	 	 	8,634.66	 	 	 	1.02	%	 	 	15,870.54	 	 	 	1.0	%
	8158 ·
    Equipment Repair	 	 	0.00	 	 	 	0.0	%	 	 	14.76	 	 	 	0.0	%	 	 	0.00	 	 	 	0.0	%	 	 	14.76	 	 	 	0.0	%
	8172 · Firewood	 	 	3,582.00	 	 	 	1.13	%	 	 	1,404.00	 	 	 	0.34	%	 	 	1,000.00	 	 	 	0.12	%	 	 	5,986.00	 	 	 	0.38	%
	8175 ·
    Cable TV	 	 	2,798.25	 	 	 	0.88	%	 	 	2,806.69	 	 	 	0.67	%	 	 	4,110.69	 	 	 	0.49	%	 	 	9,715.63	 	 	 	0.62	%
	8178 ·
    Express Mail	 	 	313.17	 	 	 	0.1	%	 	 	0.00	 	 	 	0.0	%	 	 	19.42	 	 	 	0.0	%	 	 	332.59	 	 	 	0.02	%
	8184 · Printing	 	 	780.05	 	 	 	0.25	%	 	 	1,148.22	 	 	 	0.28	%	 	 	4,919.58	 	 	 	0.58	%	 	 	6,847.85	 	 	 	0.43	%
	8185 ·
    Telephone Cell & Radio	 	 	250.00	 	 	 	0.08	%	 	 	250.00	 	 	 	0.06	%	 	 	250.00	 	 	 	0.03	%	 	 	750.00	 	 	 	0.05	%
	8190 ·
    Office Supplies	 	 	660.43	 	 	 	0.21	%	 	 	677.23	 	 	 	0.16	%	 	 	1,109.29	 	 	 	0.13	%	 	 	2,446.95	 	 	 	0.16	%
	8191 ·
    Employee Relations & Training	 	 	23.24	 	 	 	0.01	%	 	 	333.62	 	 	 	0.08	%	 	 	197.56	 	 	 	0.02	%	 	 	554.42	 	 	 	0.04	%
	8195 · Equipment	 	 	1,737.89	 	 	 	0.55	%	 	 	1,737.89	 	 	 	0.42	%	 	 	1,737.89	 	 	 	0.21	%	 	 	5,213.67	 	 	 	0.33	%
	8197 ·
    Business Meals	 	 	22.80	 	 	 	0.01	%	 	 	0.00	 	 	 	0.0	%	 	 	10.00	 	 	 	0.0	%	 	 	32.80	 	 	 	0.0	%
	8100
    · Rooms  Expenses - Other	 	 	580.91	 	 	 	0.18	%	 	 	0.00	 	 	 	0.0	%	 	 	0.00	 	 	 	0.0	%	 	 	580.91	 	 	 	0.04	%
	Total 8100
    · Rooms  Expenses	 	 	53,530.86	 	 	 	16.86	%	 	 	49,117.04	 	 	 	11.75	%	 	 	91,545.72	 	 	 	10.84	%	 	 	194,193.62	 	 	 	12.29	%
	8200 ·
    Laundry Expenses	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	8225
    · Laundry Supplies	 	 	707.24	 	 	 	0.22	%	 	 	297.00	 	 	 	0.07	%	 	 	1,118.07	 	 	 	0.13	%	 	 	2,122.31	 	 	 	0.13	%
	Total
    8200 · Laundry Expenses	 	 	707.24	 	 	 	0.22	%	 	 	297.00	 	 	 	0.07	%	 	 	1,118.07	 	 	 	0.13	%	 	 	2,122.31	 	 	 	0.13	%
	Total
    Expense	 	 	165,790.46	 	 	 	52.21	%	 	 	165,925.20	 	 	 	39.68	%	 	 	225,435.23	 	 	 	26.69	%	 	 	557,150.89	 	 	 	35.25	%
	Net
    Ordinary Income	 	 	151,731.78	 	 	 	47.79	%	 	 	252,191.61	 	 	 	60.32	%	 	 	619,295.89	 	 	 	73.31	%	 	 	1,023,219.28	 	 	 	64.75	%
	Net Income	 	 	151,731.78	 	 	 	47.79	%	 	 	252,191.61	 	 	 	60.32	%	 	 	619,295.89	 	 	 	73.31	%	 	 	1,023,219.28	 	 	 	64.75	%

  

 

	 	Page 6 of 23	109.1. Ex 18(a)- 1st Part - L'Auberge_Resort March 13 Issue Rooms

 

 

    	 

    	 

     

 

L'Auberge de Sedona Resort

Food and Beverage Department

Actual vs. Budget and Prior Year

March 2013 

 

	 	 	Current
    Month	 	 
	 	 	Actual	 	 	% to

    Revenue	 	 	Budget	 	 	% to

    Revenue	 	 	Variance	 	 	% to

    Revenue	 	 	Prior

    Year	 	 	% to

    Revenue	 	 	Variance	 	 	% to

    Revenue	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Revenue	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4300 · Food & Beverage Revenue	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Food Revenue	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4311 · Restaurant Breakfast	 	$	30,026	 	 	 	7.1	%	 	$	21,304	 	 	 	6.1	%	 	$	8,722	 	 	 	11.4	%	 	$	23,049	 	 	 	6.1	%	 	$	6,977	 	 	 	14.5	%
	4311v · Veranda Breakfast	 	 	-	 	 	 	0.0	%	 	$	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	$	-	 	 	 	0.0	%	 	$	-	 	 	 	0.0	%
	4312 · Restaurant Lunch	 	 	74,366	 	 	 	17.5	%	 	$	57,313	 	 	 	16.4	%	 	 	17,053	 	 	 	22.3	%	 	$	51,538	 	 	 	13.6	%	 	$	22,828	 	 	 	47.5	%
	4312v · Veranda Lunch	 	 	8,464	 	 	 	2.0	%	 	$	-	 	 	 	0.0	%	 	 	8,464	 	 	 	11.0	%	 	$	10,469	 	 	 	2.8	%	 	$	(2,005	)	 	 	-4.2	%
	4313 · Restaurant Dinner	 	 	134,856	 	 	 	31.7	%	 	$	115,926	 	 	 	33.2	%	 	 	18,929	 	 	 	24.7	%	 	$	109,427	 	 	 	29.0	%	 	$	25,429	 	 	 	52.9	%
	4313v · Veranda Dinner	 	 	18,175	 	 	 	4.3	%	 	$	-	 	 	 	0.0	%	 	 	18,175	 	 	 	23.7	%	 	$	15,995	 	 	 	4.2	%	 	$	2,180	 	 	 	4.5	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4321 · Banquet Coffee Break	 	 	749	 	 	 	0.2	%	 	 	1,715	 	 	 	0.5	%	 	 	(966	)	 	 	-1.3	%	 	 	1,855	 	 	 	0.5	%	 	 	(1,106	)	 	 	-2.3	%
	4322 · Banquet Breakfast	 	 	832	 	 	 	0.2	%	 	 	1,841	 	 	 	0.5	%	 	 	(1,009	)	 	 	-1.3	%	 	 	1,992	 	 	 	0.5	%	 	 	(1,160	)	 	 	-2.4	%
	4323 · Banquet Lunch	 	 	3,656	 	 	 	0.9	%	 	 	665	 	 	 	0.2	%	 	 	2,991	 	 	 	3.9	%	 	 	720	 	 	 	0.2	%	 	 	2,936	 	 	 	6.1	%
	4324 · Banquet Dinner	 	 	3,498	 	 	 	0.8	%	 	 	1,771	 	 	 	0.5	%	 	 	1,727	 	 	 	2.3	%	 	 	1,916	 	 	 	0.5	%	 	 	1,582	 	 	 	3.3	%
	4327 · Banquet Reception	 	 	1,060	 	 	 	0.2	%	 	 	340	 	 	 	0.1	%	 	 	720	 	 	 	0.9	%	 	 	368	 	 	 	0.1	%	 	 	692	 	 	 	1.4	%
	4341 · Catering Reception	 	 	480	 	 	 	0.1	%	 	 	4,403	 	 	 	1.3	%	 	 	(3,923	)	 	 	-5.1	%	 	 	4,764	 	 	 	1.3	%	 	 	(4,284	)	 	 	-8.9	%
	4342 · Catering Lunch	 	 	-	 	 	 	0.0	%	 	 	5,972	 	 	 	1.7	%	 	 	(5,972	)	 	 	-7.8	%	 	 	6,461	 	 	 	1.7	%	 	 	(6,461	)	 	 	-13.4	%
	4344 · Catering Coffee Break	 	 	-	 	 	 	0.0	%	 	 	1,188	 	 	 	0.3	%	 	 	(1,188	)	 	 	-1.5	%	 	 	1,285	 	 	 	0.3	%	 	 	(1,285	)	 	 	-2.7	%
	4346 · Catering Dinner	 	 	2,321	 	 	 	0.5	%	 	 	7,595	 	 	 	2.2	%	 	 	(5,274	)	 	 	-6.9	%	 	 	8,217	 	 	 	2.2	%	 	 	(5,896	)	 	 	-12.3	%
	4352 · Catering Breakfast	 	 	-	 	 	 	0.0	%	 	 	832	 	 	 	0.2	%	 	 	(832	)	 	 	-1.1	%	 	 	900	 	 	 	0.2	%	 	 	(900	)	 	 	-1.9	%
	4357 · Catering Pastry Wedding Cake	 	 	550	 	 	 	0.1	%	 	 	-	 	 	 	0.0	%	 	 	550	 	 	 	0.7	%	 	 	-	 	 	 	0.0	%	 	 	550	 	 	 	1.1	%
	4361 · Room Service Breakfast	 	 	11,069	 	 	 	2.6	%	 	 	5,994	 	 	 	1.7	%	 	 	5,075	 	 	 	6.6	%	 	 	6,485	 	 	 	1.7	%	 	 	4,584	 	 	 	9.5	%
	4362 · Room Service Lunch	 	 	4,257	 	 	 	1.0	%	 	 	5,526	 	 	 	1.6	%	 	 	(1,269	)	 	 	-1.7	%	 	 	5,979	 	 	 	1.6	%	 	 	(1,722	)	 	 	-3.6	%
	4363 · Room Service Dinner	 	 	9,378	 	 	 	2.2	%	 	 	8,930	 	 	 	2.6	%	 	 	448	 	 	 	0.6	%	 	 	9,661	 	 	 	2.6	%	 	 	(283	)	 	 	-0.6	%
	4367 · Room Service Delivery	 	 	1,068	 	 	 	0.3	%	 	 	3,122	 	 	 	0.9	%	 	 	(2,054	)	 	 	-2.7	%	 	 	3,378	 	 	 	0.9	%	 	 	(2,310	)	 	 	-4.8	%
	Total Food Revenue	 	 	304,805	 	 	 	71.6	%	 	 	244,438	 	 	 	70.0	%	 	 	60,368	 	 	 	78.8	%	 	 	264,459	 	 	 	70.0	%	 	 	40,347	 	 	 	84.0	%
	Food Revenue Summary	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	  Restaurant	 	 	239,248	 	 	 	56.2	%	 	 	194,544	 	 	 	55.7	%	 	 	44,704	 	 	 	58.3	%	 	 	184,014	 	 	 	48.7	%	 	 	55,234	 	 	 	115.0	%
	  Veranda	 	 	26,639	 	 	 	6.3	%	 	 	-	 	 	 	0.0	%	 	 	26,639	 	 	 	34.8	%	 	 	26,464	 	 	 	7.0	%	 	 	175	 	 	 	0.4	%
	  Banquets	 	 	9,795	 	 	 	2.3	%	 	 	6,332	 	 	 	1.8	%	 	 	3,463	 	 	 	4.5	%	 	 	6,851	 	 	 	1.8	%	 	 	2,944	 	 	 	6.1	%
	  Catering	 	 	3,351	 	 	 	0.8	%	 	 	19,990	 	 	 	5.7	%	 	 	(16,639	)	 	 	-21.7	%	 	 	21,627	 	 	 	5.7	%	 	 	(18,276	)	 	 	-38.0	%
	  Room Service	 	 	25,772	 	 	 	6.1	%	 	 	23,572	 	 	 	6.8	%	 	 	2,200	 	 	 	2.9	%	 	 	25,503	 	 	 	6.8	%	 	 	269	 	 	 	0.6	%
	Total Food Revenue	 	 	304,805	 	 	 	71.6	%	 	 	244,438	 	 	 	70.0	%	 	 	60,368	 	 	 	78.8	%	 	 	264,459	 	 	 	70.0	%	 	 	40,347	 	 	 	84.0	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Beverage Revenue	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Beer Revenue	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4314 · Restaurant Beer Sales	 	 	1,349	 	 	 	0.3	%	 	$	2,766	 	 	 	0.8	%	 	 	(1,418	)	 	 	-1.9	%	 	$	1,219	 	 	 	0.3	%	 	$	130	 	 	 	0.3	%
	4314v · Veranda Beer Sales	 	 	1,777	 	 	 	0.4	%	 	$	-	 	 	 	0.0	%	 	 	1,777	 	 	 	2.3	%	 	$	1,774	 	 	 	0.5	%	 	$	3	 	 	 	0.0	%
	4366 · Room Service Beer Sales	 	 	145	 	 	 	0.0	%	 	 	129	 	 	 	0.0	%	 	 	16	 	 	 	0.0	%	 	 	140	 	 	 	0.0	%	 	 	5	 	 	 	0.0	%
	4329 · Banquet Beer Sales	 	 	18	 	 	 	0.0	%	 	 	291	 	 	 	0.1	%	 	 	(273	)	 	 	-0.4	%	 	 	315	 	 	 	0.1	%	 	 	(297	)	 	 	-0.6	%
	4350 · Catering Beer	 	 	362	 	 	 	0.1	%	 	 	1,152	 	 	 	0.3	%	 	 	(790	)	 	 	-1.0	%	 	 	1,246	 	 	 	0.3	%	 	 	(884	)	 	 	-1.8	%
	Subtotal - Beer Revenue	 	 	3,651	 	 	 	0.9	%	 	 	4,338	 	 	 	1.2	%	 	 	(687	)	 	 	-0.9	%	 	 	4,694	 	 	 	1.2	%	 	 	(1,043	)	 	 	-2.2	%
	Liquor Revenue	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4316 · Restaurant Liquor Sales	 	 	11,037	 	 	 	2.6	%	 	$	18,469	 	 	 	5.3	%	 	 	(7,432	)	 	 	-9.7	%	 	$	7,952	 	 	 	2.1	%	 	$	3,084	 	 	 	6.4	%
	4316v · Veranda Liquor Sales	 	 	14,876	 	 	 	3.5	%	 	$	-	 	 	 	0.0	%	 	 	14,876	 	 	 	19.4	%	 	$	12,029	 	 	 	3.2	%	 	$	2,847	 	 	 	5.9	%
	4325 · Banquet Liquor	 	 	817	 	 	 	0.2	%	 	 	306	 	 	 	0.1	%	 	 	510	 	 	 	0.7	%	 	 	332	 	 	 	0.1	%	 	 	485	 	 	 	1.0	%
	4364 · Room Service Liquor Sales	 	 	388	 	 	 	0.1	%	 	 	390	 	 	 	0.1	%	 	 	(2	)	 	 	0.0	%	 	 	422	 	 	 	0.1	%	 	 	(34	)	 	 	-0.1	%
	4343 · Catering Liquor Sales	 	 	265	 	 	 	0.1	%	 	 	1,434	 	 	 	0.4	%	 	 	(1,168	)	 	 	-1.5	%	 	 	1,551	 	 	 	0.4	%	 	 	(1,286	)	 	 	-2.7	%
	Subtotal - Liquor Revenue	 	 	27,382	 	 	 	6.4	%	 	 	20,599	 	 	 	5.9	%	 	 	6,784	 	 	 	8.9	%	 	 	22,286	 	 	 	5.9	%	 	 	5,096	 	 	 	10.6	%
	Wine Revenue	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4315 · Restaurant Wine Sales	 	 	55,183	 	 	 	13.0	%	 	$	56,926	 	 	 	16.3	%	 	 	(1,743	)	 	 	-2.3	%	 	$	43,067	 	 	 	11.4	%	 	$	12,117	 	 	 	25.2	%
	4315v · Veranda Wine Sales	 	 	19,843	 	 	 	4.7	%	 	$	-	 	 	 	0.0	%	 	 	19,843	 	 	 	25.9	%	 	$	18,522	 	 	 	4.9	%	 	$	1,320	 	 	 	2.7	%
	4326 · Banquet Wine Sales	 	 	1,080	 	 	 	0.3	%	 	 	1,521	 	 	 	0.4	%	 	 	(441	)	 	 	-0.6	%	 	 	1,646	 	 	 	0.4	%	 	 	(566	)	 	 	-1.2	%
	4351 · Catering Wine	 	 	1,883	 	 	 	0.4	%	 	 	2,213	 	 	 	0.6	%	 	 	(330	)	 	 	-0.4	%	 	 	2,394	 	 	 	0.6	%	 	 	(511	)	 	 	-1.1	%
	4365 · Room Service Wine Sales	 	 	2,458	 	 	 	0.6	%	 	 	4,389	 	 	 	1.3	%	 	 	(1,931	)	 	 	-2.5	%	 	 	4,749	 	 	 	1.3	%	 	 	(2,291	)	 	 	-4.8	%
	Subtotal - Wine Revenue	 	 	80,447	 	 	 	18.9	%	 	 	65,050	 	 	 	18.6	%	 	 	15,397	 	 	 	20.1	%	 	 	70,378	 	 	 	18.6	%	 	 	10,069	 	 	 	21.0	%
	Total Beverage Revenue	 	 	111,480	 	 	 	26.2	%	 	 	89,987	 	 	 	25.8	%	 	 	21,493	 	 	 	28.0	%	 	 	97,358	 	 	 	25.8	%	 	 	14,123	 	 	 	29.4	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Miscellaneous Revenue	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4319 · Resteraunt Complimentary Accoun	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	4328 · Banquet Miscellaneous	 	 	1,355	 	 	 	0.3	%	 	 	1,444	 	 	 	0.4	%	 	 	(89	)	 	 	-0.1	%	 	 	1,563	 	 	 	0.4	%	 	 	(208	)	 	 	-0.4	%
	4330 · Banquet Equipment Rental	 	 	325	 	 	 	0.1	%	 	 	1,872	 	 	 	0.5	%	 	 	(1,547	)	 	 	-2.0	%	 	 	2,025	 	 	 	0.5	%	 	 	(1,700	)	 	 	-3.5	%
	4331 · Banquet Meeting Room	 	 	2,150	 	 	 	0.5	%	 	 	171	 	 	 	0.0	%	 	 	1,979	 	 	 	2.6	%	 	 	185	 	 	 	0.0	%	 	 	1,965	 	 	 	4.1	%
	4345 · Catering Miscellaneous	 	 	1,270	 	 	 	0.3	%	 	 	3,210	 	 	 	0.9	%	 	 	(1,941	)	 	 	-2.5	%	 	 	3,473	 	 	 	0.9	%	 	 	(2,204	)	 	 	-4.6	%
	4347 · Catering Equipment Rental	 	 	300	 	 	 	0.1	%	 	 	855	 	 	 	0.2	%	 	 	(555	)	 	 	-0.7	%	 	 	925	 	 	 	0.2	%	 	 	(625	)	 	 	-1.3	%
	4348 · Catering Meeting Room	 	 	3,948	 	 	 	0.9	%	 	 	7,023	 	 	 	2.0	%	 	 	(3,076	)	 	 	-4.0	%	 	 	7,598	 	 	 	2.0	%	 	 	(3,651	)	 	 	-7.6	%
	4370 · Micros Interface Issues	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	Total Miscellaneous Revenue	 	 	9,347	 	 	 	2.2	%	 	 	14,575	 	 	 	4.2	%	 	 	(5,228	)	 	 	-6.8	%	 	 	15,769	 	 	 	4.2	%	 	 	(6,422	)	 	 	-13.4	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Food & Beverage Revenue	 	 	425,632	 	 	 	100.0	%	 	 	349,000	 	 	 	100.0	%	 	 	76,632	 	 	 	100.0	%	 	 	377,585	 	 	 	100.0	%	 	 	48,047	 	 	 	100.0	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Cost of Goods Sold	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	6300 · Cost of Food & Beverage	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	6310 · Cost of Sales-Food	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	63100P · Pastry food supplies	 	 	645	 	 	 	0.2	%	 	 	-	 	 	 	0.0	%	 	 	645	 	 	 	1.1	%	 	 	1,989	 	 	 	0.8	%	 	 	(1,344	)	 	 	-3.3	%
	631001 · Meat	 	 	23,040	 	 	 	7.6	%	 	 	-	 	 	 	0.0	%	 	 	23,040	 	 	 	38.2	%	 	 	20,212	 	 	 	7.6	%	 	 	2,828	 	 	 	7.0	%
	631002 · Seafood	 	 	18,251	 	 	 	6.0	%	 	 	-	 	 	 	0.0	%	 	 	18,251	 	 	 	30.2	%	 	 	10,245	 	 	 	3.9	%	 	 	8,006	 	 	 	19.8	%
	631003 · Poultry	 	 	2,705	 	 	 	0.9	%	 	 	-	 	 	 	0.0	%	 	 	2,705	 	 	 	4.5	%	 	 	1,175	 	 	 	0.4	%	 	 	1,530	 	 	 	3.8	%
	631004 · Produce	 	 	19,616	 	 	 	6.4	%	 	 	-	 	 	 	0.0	%	 	 	19,616	 	 	 	32.5	%	 	 	12,862	 	 	 	4.9	%	 	 	6,754	 	 	 	16.7	%
	631005 · Dairy	 	 	7,773	 	 	 	2.6	%	 	 	-	 	 	 	0.0	%	 	 	7,773	 	 	 	12.9	%	 	 	7,172	 	 	 	2.7	%	 	 	601	 	 	 	1.5	%
	631006 · Bread	 	 	2,065	 	 	 	0.7	%	 	 	-	 	 	 	0.0	%	 	 	2,065	 	 	 	3.4	%	 	 	1,765	 	 	 	0.7	%	 	 	300	 	 	 	0.7	%
	631007 · Other Food	 	 	18,616	 	 	 	6.1	%	 	 	-	 	 	 	0.0	%	 	 	18,616	 	 	 	30.8	%	 	 	6,514	 	 	 	2.5	%	 	 	12,102	 	 	 	30.0	%
	631007S · Shamrock Delinquent	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	631009 · Cost Of Goods Sold-EDR	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	9,158	 	 	 	3.5	%	 	 	(9,158	)	 	 	-22.7	%
	6310 · Restaurant Cost of Sales-Food - Other	 	 	-	 	 	 	0.0	%	 	 	59,936	 	 	 	24.5	%	 	 	(59,936	)	 	 	-99.3	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	Total 6310 · Cost of Sales-Food	 	 	92,711	 	 	 	30.4	%	 	 	59,936	 	 	 	24.5	%	 	 	32,775	 	 	 	54.3	%	 	 	71,092	 	 	 	26.9	%	 	 	21,620	 	 	 	53.6	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Cost of Sales - Beverage	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	6311 · Cost of Goods - Liquor	 	 	4,940	 	 	 	18.0	%	 	 	3,977	 	 	 	19.3	%	 	 	963	 	 	 	14.2	%	 	 	4,303	 	 	 	19.3	%	 	 	637	 	 	 	12.5	%
	6312 · Cost of Goods-Wine	 	 	24,901	 	 	 	31.0	%	 	 	20,108	 	 	 	30.9	%	 	 	4,793	 	 	 	31.1	%	 	 	21,755	 	 	 	30.9	%	 	 	3,146	 	 	 	31.2	%
	6313 · Cost of Goods-Beer	 	 	886	 	 	 	24.3	%	 	 	2,486	 	 	 	57.3	%	 	 	(1,600	)	 	 	232.8	%	 	 	2,690	 	 	 	57.3	%	 	 	(1,804	)	 	 	173.0	%
	Cost of Sales - Beverage	 	 	30,727	 	 	 	27.6	%	 	 	26,571	 	 	 	29.5	%	 	 	4,155	 	 	 	19.3	%	 	 	28,748	 	 	 	29.5	%	 	 	1,979	 	 	 	14.0	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Miscellaneous	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	6554 · Cost of Goods B&C	 	 	2,809	 	 	 	0.7	%	 	 	-	 	 	 	0.0	%	 	 	2,809	 	 	 	-53.7	%	 	 	2,349	 	 	 	0.6	%	 	 	460	 	 	 	-7.2	%
	6300 · Cost of Food & Beverage - Other	 	 	-	 	 	 	0.0	%	 	 	2,171	 	 	 	0.6	%	 	 	(2,171	)	 	 	41.5	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	Total Miscellaneous	 	 	2,809	 	 	 	0.7	%	 	 	2,171	 	 	 	0.6	%	 	 	638	 	 	 	-12.2	%	 	 	2,349	 	 	 	0.6	%	 	 	460	 	 	 	-7.2	%
	Total COGS	 	 	126,247	 	 	 	29.7	%	 	 	88,679	 	 	 	25.4	%	 	 	37,568	 	 	 	49.0	%	 	 	102,188	 	 	 	27.1	%	 	 	24,059	 	 	 	50.1	%
	Gross Profit	 	 	299,386	 	 	 	70.3	%	 	 	260,321	 	 	 	74.6	%	 	 	39,065	 	 	 	51.0	%	 	 	275,397	 	 	 	72.9	%	 	 	23,989	 	 	 	49.9	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Expense	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5000 · Payroll & Benefits	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5300000 · F&B Salaries & Wages	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5363000 · Restaurant Salary & Wages	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5363150 · Restaurant Supervisor	 	 	935	 	 	 	0.2	%	 	 	-	 	 	 	0.0	%	 	 	935	 	 	 	1.2	%	 	 	-	 	 	 	0.0	%	 	 	935	 	 	 	1.9	%
	5363160 · Restaurant Chef	 	 	20,130	 	 	 	4.7	%	 	 	24,429	 	 	 	7.0	%	 	 	(4,299	)	 	 	-5.6	%	 	 	18,993	 	 	 	5.0	%	 	 	1,137	 	 	 	2.4	%
	5363170 · Manager, Restauant	 	 	20,750	 	 	 	4.9	%	 	 	17,066	 	 	 	4.9	%	 	 	3,684	 	 	 	4.8	%	 	 	17,066	 	 	 	4.5	%	 	 	3,684	 	 	 	7.7	%
	5363199 · F&B Shared Services	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	5363300 · Restaurant Server	 	 	5,777	 	 	 	1.4	%	 	 	5,062	 	 	 	1.5	%	 	 	715	 	 	 	0.9	%	 	 	5,062	 	 	 	1.3	%	 	 	715	 	 	 	1.5	%
	5363305 · Restaurant Expeditor	 	 	6,896	 	 	 	1.6	%	 	 	7,618	 	 	 	2.2	%	 	 	(722	)	 	 	-0.9	%	 	 	3,616	 	 	 	1.0	%	 	 	3,280	 	 	 	6.8	%
	5363306 · Room Service Coordinator	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	728	 	 	 	0.2	%	 	 	(728	)	 	 	-1.5	%
	5363310 · Restaurant Busser	 	 	7,003	 	 	 	1.6	%	 	 	-	 	 	 	0.0	%	 	 	7,003	 	 	 	9.1	%	 	 	7,618	 	 	 	2.0	%	 	 	(615	)	 	 	-1.3	%
	5363320 · Restaurant Bartendar	 	 	4,466	 	 	 	1.0	%	 	 	4,557	 	 	 	1.3	%	 	 	(91	)	 	 	-0.1	%	 	 	4,557	 	 	 	1.2	%	 	 	(91	)	 	 	-0.2	%
	5363330 · Restaurant Cashier/Hostess	 	 	6,984	 	 	 	1.6	%	 	 	6,200	 	 	 	1.8	%	 	 	784	 	 	 	1.0	%	 	 	6,200	 	 	 	1.6	%	 	 	784	 	 	 	1.6	%
	5363400 · Warewasher/Dishwasher	 	 	12,212	 	 	 	2.9	%	 	 	9,086	 	 	 	2.6	%	 	 	3,126	 	 	 	4.1	%	 	 	9,086	 	 	 	2.4	%	 	 	3,126	 	 	 	6.5	%
	5363420 · Cook	 	 	38,070	 	 	 	8.9	%	 	 	32,237	 	 	 	9.2	%	 	 	5,833	 	 	 	7.6	%	 	 	32,237	 	 	 	8.5	%	 	 	5,833	 	 	 	12.1	%
	5363430 · Pastry Chef	 	 	7,158	 	 	 	1.7	%	 	 	4,343	 	 	 	1.2	%	 	 	2,815	 	 	 	3.7	%	 	 	5,436	 	 	 	1.4	%	 	 	1,722	 	 	 	3.6	%
	5363440 · EDR Cook	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	5363450 · EDR Chef	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	5363610 · Valet	 	 	9,336	 	 	 	2.2	%	 	 	9,005	 	 	 	2.6	%	 	 	331	 	 	 	0.4	%	 	 	9,005	 	 	 	2.4	%	 	 	331	 	 	 	0.7	%
	5363999 · Restaurant Other Pay	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	5300000 · F&B Salaries & Wages - Other	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	Total 5363000 · Restaurant Salary & Wages	 	 	139,716	 	 	 	32.8	%	 	 	119,603	 	 	 	34.3	%	 	 	20,113	 	 	 	26.2	%	 	 	119,603	 	 	 	31.7	%	 	 	20,113	 	 	 	41.9	%
	5363050 · Restaurant Taxes & Benefits	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5351 · F&B Payroll Taxes	 	 	22,368	 	 	 	5.3	%	 	 	23,086	 	 	 	6.6	%	 	 	(718	)	 	 	-0.9	%	 	 	20,886	 	 	 	5.5	%	 	 	1,482	 	 	 	3.1	%
	5352 · F&B Workers' Comp	 	 	9,206	 	 	 	2.2	%	 	 	1,690	 	 	 	0.5	%	 	 	7,516	 	 	 	9.8	%	 	 	1,354	 	 	 	0.4	%	 	 	7,852	 	 	 	16.3	%
	5353 · F&B Employ Benefits	 	 	10,308	 	 	 	2.4	%	 	 	7,117	 	 	 	2.0	%	 	 	3,191	 	 	 	4.2	%	 	 	7,538	 	 	 	2.0	%	 	 	2,770	 	 	 	5.8	%
	5355 · F&B PTO	 	 	4,483	 	 	 	1.1	%	 	 	7,120	 	 	 	2.0	%	 	 	(2,637	)	 	 	-3.4	%	 	 	6,975	 	 	 	1.8	%	 	 	(2,492	)	 	 	-5.2	%
	5356 · F&B Employ Meals	 	 	3,773	 	 	 	0.9	%	 	 	4,506	 	 	 	1.3	%	 	 	(732	)	 	 	-1.0	%	 	 	3,589	 	 	 	1.0	%	 	 	185	 	 	 	0.4	%
	5399 · F&B Shared Services Fringes	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	Total 5363050 · Restaurant Taxes & Benefits	 	 	50,139	 	 	 	11.8	%	 	 	43,518	 	 	 	12.5	%	 	 	6,621	 	 	 	8.6	%	 	 	40,342	 	 	 	10.7	%	 	 	9,796	 	 	 	20.4	%
	5368000 · Banquets Salary & Wages	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5368150 · Banquet Captain/Supervisor	 	 	1,277	 	 	 	0.3	%	 	 	2,018	 	 	 	0.6	%	 	 	(741	)	 	 	-1.0	%	 	 	2,018	 	 	 	0.5	%	 	 	(741	)	 	 	-1.5	%
	5368170 · Manager, Banquet	 	 	4,258	 	 	 	1.0	%	 	 	4,258	 	 	 	1.2	%	 	 	(0	)	 	 	0.0	%	 	 	4,258	 	 	 	1.1	%	 	 	(0	)	 	 	0.0	%
	5368300 · Banquet Server	 	 	1,250	 	 	 	0.3	%	 	 	1,251	 	 	 	0.4	%	 	 	(1	)	 	 	0.0	%	 	 	1,251	 	 	 	0.3	%	 	 	(1	)	 	 	0.0	%
	5368320 · Banquet Bartender	 	 	-	 	 	 	0.0	%	 	 	363	 	 	 	0.1	%	 	 	(363	)	 	 	-0.5	%	 	 	363	 	 	 	0.1	%	 	 	(363	)	 	 	-0.8	%
	5368560 · Banquet House Attendant	 	 	636	 	 	 	0.1	%	 	 	1,268	 	 	 	0.4	%	 	 	(633	)	 	 	-0.8	%	 	 	1,268	 	 	 	0.3	%	 	 	(633	)	 	 	-1.3	%
	Total 5368000 · Banquets Salary & Wages	 	 	7,420	 	 	 	1.7	%	 	 	9,158	 	 	 	2.6	%	 	 	(1,737	)	 	 	-2.3	%	 	 	9,158	 	 	 	2.4	%	 	 	(1,737	)	 	 	-3.6	%
	5368050 · Banquet Taxes & Benefits	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	53655 · Banquets PTO	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	53681 · Banquet PR Taxes	 	 	1,281	 	 	 	0.3	%	 	 	-	 	 	 	0.0	%	 	 	1,281	 	 	 	1.7	%	 	 	2,200	 	 	 	0.6	%	 	 	(919	)	 	 	-1.9	%
	53682 · Banquet Workers' Comp	 	 	2,270	 	 	 	0.5	%	 	 	-	 	 	 	0.0	%	 	 	2,270	 	 	 	3.0	%	 	 	336	 	 	 	0.1	%	 	 	1,934	 	 	 	4.0	%
	53683 · Banquet Employ Benefits	 	 	304	 	 	 	0.1	%	 	 	-	 	 	 	0.0	%	 	 	304	 	 	 	0.4	%	 	 	(422	)	 	 	-0.1	%	 	 	726	 	 	 	1.5	%
	53685 · Banquet Employee PTO	 	 	412	 	 	 	0.1	%	 	 	-	 	 	 	0.0	%	 	 	412	 	 	 	0.5	%	 	 	144	 	 	 	0.0	%	 	 	267	 	 	 	0.6	%
	53686 · Banquet Employ Meals	 	 	1,006	 	 	 	0.2	%	 	 	-	 	 	 	0.0	%	 	 	1,006	 	 	 	1.3	%	 	 	917	 	 	 	0.2	%	 	 	89	 	 	 	0.2	%
	Total 5368050 · Banquet Taxes & Benefits	 	 	5,273	 	 	 	1.2	%	 	 	-	 	 	 	0.0	%	 	 	5,273	 	 	 	6.9	%	 	 	3,176	 	 	 	0.8	%	 	 	2,097	 	 	 	4.4	%
	Total 5300000 · F&B Salaries & Wages	 	 	202,548	 	 	 	47.6	%	 	 	172,278	 	 	 	49.4	%	 	 	30,270	 	 	 	39.5	%	 	 	172,278	 	 	 	45.6	%	 	 	30,270	 	 	 	63.0	%
	Total 5000 · Payroll & Benefits	 	 	202,548	 	 	 	47.6	%	 	 	172,278	 	 	 	49.4	%	 	 	30,270	 	 	 	39.5	%	 	 	172,278	 	 	 	45.6	%	 	 	30,270	 	 	 	63.0	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	8300 · Food & Beverage	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	8300 · Food & Beverage - Other	 	 	-	 	 	 	0.0	%	 	 	623	 	 	 	0.2	%	 	 	(623	)	 	 	-0.8	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8312 · Guest Satisfaction	 	 	1,550	 	 	 	0.4	%	 	 	1,321	 	 	 	0.4	%	 	 	229	 	 	 	0.3	%	 	 	1,321	 	 	 	0.3	%	 	 	229	 	 	 	0.5	%
	8313 · Operating Supplies	 	 	1,800	 	 	 	0.4	%	 	 	1,061	 	 	 	0.3	%	 	 	739	 	 	 	1.0	%	 	 	1,061	 	 	 	0.3	%	 	 	739	 	 	 	1.5	%
	8314 · Beverage Operating Supplies	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8318 · Business Meetings	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8320 · Menu Testing	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8326 · Equipment Repair	 	 	131	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	131	 	 	 	0.2	%	 	 	-	 	 	 	0.0	%	 	 	131	 	 	 	0.3	%
	8327 · Equipment Rental	 	 	1,158	 	 	 	0.3	%	 	 	480	 	 	 	0.1	%	 	 	677	 	 	 	0.9	%	 	 	480	 	 	 	0.1	%	 	 	677	 	 	 	1.4	%
	8330 · Outside Laundry	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8335 · Uniforms	 	 	3,161	 	 	 	0.7	%	 	 	3,715	 	 	 	1.1	%	 	 	(554	)	 	 	-0.7	%	 	 	3,715	 	 	 	1.0	%	 	 	(554	)	 	 	-1.2	%
	8343 · Linens	 	 	10,337	 	 	 	2.4	%	 	 	7,084	 	 	 	2.0	%	 	 	3,252	 	 	 	4.2	%	 	 	7,084	 	 	 	1.9	%	 	 	3,252	 	 	 	6.8	%
	8344 · Linens- Banquet	 	 	-	 	 	 	0.0	%	 	 	1,194	 	 	 	0.3	%	 	 	(1,194	)	 	 	-1.6	%	 	 	1,194	 	 	 	0.3	%	 	 	(1,194	)	 	 	-2.5	%
	8351 · Cleaning Supplies	 	 	1,893	 	 	 	0.4	%	 	 	1,610	 	 	 	0.5	%	 	 	282	 	 	 	0.4	%	 	 	1,610	 	 	 	0.4	%	 	 	282	 	 	 	0.6	%
	8359 · Small Equipment	 	 	410	 	 	 	0.1	%	 	 	-	 	 	 	0.0	%	 	 	410	 	 	 	0.5	%	 	 	-	 	 	 	0.0	%	 	 	410	 	 	 	0.9	%
	8359P · Pastry Operating Small Equipmen	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8361 · Computer Maint. & Support	 	 	2,967	 	 	 	0.7	%	 	 	946	 	 	 	0.3	%	 	 	2,021	 	 	 	2.6	%	 	 	946	 	 	 	0.3	%	 	 	2,021	 	 	 	4.2	%
	8362 · Glassware/Utensils/Silverware	 	 	3,770	 	 	 	0.9	%	 	 	4,160	 	 	 	1.2	%	 	 	(390	)	 	 	-0.5	%	 	 	4,160	 	 	 	1.1	%	 	 	(390	)	 	 	-0.8	%
	8363 · Paper Supplies	 	 	3,169	 	 	 	0.7	%	 	 	2,064	 	 	 	0.6	%	 	 	1,104	 	 	 	1.4	%	 	 	2,064	 	 	 	0.5	%	 	 	1,104	 	 	 	2.3	%
	8364 · Decorations	 	 	1,562	 	 	 	0.4	%	 	 	1,483	 	 	 	0.4	%	 	 	78	 	 	 	0.1	%	 	 	1,483	 	 	 	0.4	%	 	 	78	 	 	 	0.2	%
	8367 · Propane	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8370 · Contract Labor	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8371 · Food Promotion	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8372 · Firewood	 	 	140	 	 	 	0.0	%	 	 	340	 	 	 	0.1	%	 	 	(200	)	 	 	-0.3	%	 	 	340	 	 	 	0.1	%	 	 	(200	)	 	 	-0.4	%
	8374 · Music/Entertainment	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8375 · Cable TV	 	 	186	 	 	 	0.0	%	 	 	1,332	 	 	 	0.4	%	 	 	(1,146	)	 	 	-1.5	%	 	 	1,332	 	 	 	0.4	%	 	 	(1,146	)	 	 	-2.4	%
	8377 · Menus	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8378 · Express Mail	 	 	-	 	 	 	0.0	%	 	 	252	 	 	 	0.1	%	 	 	(252	)	 	 	-0.3	%	 	 	252	 	 	 	0.1	%	 	 	(252	)	 	 	-0.5	%
	8380 · Postage	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8381 · Dues & Subscriptions	 	 	275	 	 	 	0.1	%	 	 	41	 	 	 	0.0	%	 	 	234	 	 	 	0.3	%	 	 	41	 	 	 	0.0	%	 	 	234	 	 	 	0.5	%
	8384 · Printing	 	 	-	 	 	 	0.0	%	 	 	105	 	 	 	0.0	%	 	 	(105	)	 	 	-0.1	%	 	 	105	 	 	 	0.0	%	 	 	(105	)	 	 	-0.2	%
	8385 · Telephone Cell & Radio	 	 	350	 	 	 	0.1	%	 	 	400	 	 	 	0.1	%	 	 	(50	)	 	 	-0.1	%	 	 	400	 	 	 	0.1	%	 	 	(50	)	 	 	-0.1	%
	8387 · Employee Recruitment	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8388 · Signage	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8389 · Miscellaneous Expenses	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8390 · Office Supplies	 	 	410	 	 	 	0.1	%	 	 	792	 	 	 	0.2	%	 	 	(381	)	 	 	-0.5	%	 	 	792	 	 	 	0.2	%	 	 	(381	)	 	 	-0.8	%
	8391 · Employee Relations & Training	 	 	-	 	 	 	0.0	%	 	 	10	 	 	 	0.0	%	 	 	(10	)	 	 	0.0	%	 	 	10	 	 	 	0.0	%	 	 	(10	)	 	 	0.0	%
	8393 · Licenses & Permits	 	 	-	 	 	 	0.0	%	 	 	(113	)	 	 	0.0	%	 	 	113	 	 	 	0.1	%	 	 	(113	)	 	 	0.0	%	 	 	113	 	 	 	0.2	%
	8394P · Van expense-P	 	 	623	 	 	 	0.1	%	 	 	-	 	 	 	0.0	%	 	 	623	 	 	 	0.8	%	 	 	623	 	 	 	0.2	%	 	 	-	 	 	 	0.0	%
	8395 · Equipment	 	 	440	 	 	 	0.1	%	 	 	2,579	 	 	 	0.7	%	 	 	(2,139	)	 	 	-2.8	%	 	 	2,579	 	 	 	0.7	%	 	 	(2,139	)	 	 	-4.5	%
	8396 · Business Travel	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8397 · Business Meals	 	 	-	 	 	 	0.0	%	 	 	116	 	 	 	0.0	%	 	 	(116	)	 	 	-0.2	%	 	 	116	 	 	 	0.0	%	 	 	(116	)	 	 	-0.2	%
	8399 · Oper cost related to renovation	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8399A · Op cost renovation-construction	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8399C · Op costs - renov - construction	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8398 · Consultants	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8399 · Oper cost related to renovation - Other	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	Total 8399 · Oper cost related to renovation	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	Total 8300 · Food & Beverage	 	 	34,331	 	 	 	8.1	%	 	 	31,596	 	 	 	9.1	%	 	 	2,735	 	 	 	3.6	%	 	 	31,596	 	 	 	8.4	%	 	 	2,735	 	 	 	5.7	%
	Total Expense	 	 	236,879	 	 	 	55.7	%	 	 	203,874	 	 	 	58.4	%	 	 	33,005	 	 	 	43.1	%	 	 	203,874	 	 	 	54.0	%	 	 	33,005	 	 	 	68.7	%
	Net Income	 	 	62,507	 	 	 	14.7	%	 	 	56,447	 	 	 	16.2	%	 	 	6,060	 	 	 	7.9	%	 	 	71,523	 	 	 	18.9	%	 	 	(9,017	)	 	 	-18.8	%

 

	 	 	Year
    to Date	 	 	 	Budget

        Full
        Year
	 
	 	 	Actual	 	 	% to Revenue	 	 	Budget	 	 	% to

    Revenue	 	 	Variance	 	 	% to

    Revenue	 	 	Prior

    Year	 	 	% to

    Revenue	 	 	Variance	 	 	% to

    Revenue	 	 	Amount	 	 	% to

    Revenue	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Revenue	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4300 · Food & Beverage Revenue	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Food Revenue	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4311 · Restaurant Breakfast	 	$	54,122	 	 	 	6.7	%	 	$	43,901	 	 	 	5.7	%	 	$	10,222	 	 	 	21.5	%	 	$	51,731	 	 	 	5.8	%	 	$	2,391	 	 	 	-2.9	%	 	$	328,245	 	 	 	6.8	%
	4311v · Veranda Breakfast	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	4312 · Restaurant Lunch	 	 	118,107	 	 	 	14.6	%	 	 	111,824	 	 	 	14.6	%	 	 	6,284	 	 	 	13.2	%	 	 	104,979	 	 	 	11.7	%	 	 	13,129	 	 	 	-15.9	%	 	 	592,951.35	 	 	 	12.2	%
	4312v · Veranda Lunch	 	 	21,234	 	 	 	2.6	%	 	 	-	 	 	 	0.0	%	 	 	21,234	 	 	 	44.7	%	 	 	27,389	 	 	 	3.1	%	 	 	(6,155	)	 	 	7.5	%	 	 	69,321.24	 	 	 	1.4	%
	4313 · Restaurant Dinner	 	 	265,194	 	 	 	32.7	%	 	 	248,504	 	 	 	32.5	%	 	 	16,690	 	 	 	35.1	%	 	 	260,433	 	 	 	29.1	%	 	 	4,761	 	 	 	-5.8	%	 	 	1,469,564.13	 	 	 	30.2	%
	4313v · Veranda Dinner	 	 	31,512	 	 	 	3.9	%	 	 	-	 	 	 	0.0	%	 	 	31,512	 	 	 	66.3	%	 	 	33,703	 	 	 	3.8	%	 	 	(2,191	)	 	 	2.7	%	 	 	195,890.68	 	 	 	4.0	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4321 · Banquet Coffee Break	 	 	2,774	 	 	 	0.3	%	 	 	3,423	 	 	 	0.4	%	 	 	(648	)	 	 	-1.4	%	 	 	3,905	 	 	 	0.4	%	 	 	(1,130	)	 	 	1.4	%	 	 	10,690.41	 	 	 	0.2	%
	4322 · Banquet Breakfast	 	 	832	 	 	 	0.1	%	 	 	1,841	 	 	 	0.2	%	 	 	(1,009	)	 	 	-2.1	%	 	 	5,804	 	 	 	0.6	%	 	 	(4,972	)	 	 	6.0	%	 	 	22,370.00	 	 	 	0.5	%
	4323 · Banquet Lunch	 	 	4,760	 	 	 	0.6	%	 	 	1,449	 	 	 	0.2	%	 	 	3,311	 	 	 	7.0	%	 	 	5,756	 	 	 	0.6	%	 	 	(996	)	 	 	1.2	%	 	 	14,055.00	 	 	 	0.3	%
	4324 · Banquet Dinner	 	 	6,195	 	 	 	0.8	%	 	 	3,283	 	 	 	0.4	%	 	 	2,912	 	 	 	6.1	%	 	 	5,336	 	 	 	0.6	%	 	 	859	 	 	 	-1.0	%	 	 	24,739.00	 	 	 	0.5	%
	4327 · Banquet Reception	 	 	1,060	 	 	 	0.1	%	 	 	6,079	 	 	 	0.8	%	 	 	(5,019	)	 	 	-10.6	%	 	 	8,857	 	 	 	1.0	%	 	 	(7,797	)	 	 	9.5	%	 	 	18,163.56	 	 	 	0.4	%
	4341 · Catering Reception	 	 	480	 	 	 	0.1	%	 	 	9,370	 	 	 	1.2	%	 	 	(8,890	)	 	 	-18.7	%	 	 	11,662	 	 	 	1.3	%	 	 	(11,182	)	 	 	13.6	%	 	 	85,725.84	 	 	 	1.8	%
	4342 · Catering Lunch	 	 	-	 	 	 	0.0	%	 	 	9,422	 	 	 	1.2	%	 	 	(9,422	)	 	 	-19.8	%	 	 	11,141	 	 	 	1.2	%	 	 	(11,141	)	 	 	13.5	%	 	 	28,670.89	 	 	 	0.6	%
	4344 · Catering Coffee Break	 	 	383	 	 	 	0.0	%	 	 	2,529	 	 	 	0.3	%	 	 	(2,146	)	 	 	-4.5	%	 	 	3,487	 	 	 	0.4	%	 	 	(3,104	)	 	 	3.8	%	 	 	12,433.85	 	 	 	0.3	%
	4346 · Catering Dinner	 	 	4,117	 	 	 	0.5	%	 	 	29,203	 	 	 	3.8	%	 	 	(25,086	)	 	 	-52.8	%	 	 	35,113	 	 	 	3.9	%	 	 	(30,996	)	 	 	37.6	%	 	 	279,568.19	 	 	 	5.7	%
	4352 · Catering Breakfast	 	 	242	 	 	 	0.0	%	 	 	1,592	 	 	 	0.2	%	 	 	(1,350	)	 	 	-2.8	%	 	 	1,776	 	 	 	0.2	%	 	 	(1,534	)	 	 	1.9	%	 	 	8,601.03	 	 	 	0.2	%
	4357 · Catering Pastry Wedding Cake	 	 	610	 	 	 	0.1	%	 	 	-	 	 	 	0.0	%	 	 	610	 	 	 	1.3	%	 	 	-	 	 	 	0.0	%	 	 	610	 	 	 	-0.7	%	 	 	-	 	 	 	0.0	%
	4361 · Room Service Breakfast	 	 	23,889	 	 	 	2.9	%	 	 	16,442	 	 	 	2.2	%	 	 	7,447	 	 	 	15.7	%	 	 	18,645	 	 	 	2.1	%	 	 	5,244	 	 	 	-6.4	%	 	 	90,365.00	 	 	 	1.9	%
	4362 · Room Service Lunch	 	 	7,000	 	 	 	0.9	%	 	 	9,514	 	 	 	1.2	%	 	 	(2,515	)	 	 	-5.3	%	 	 	10,789	 	 	 	1.2	%	 	 	(3,789	)	 	 	4.6	%	 	 	56,219.55	 	 	 	1.2	%
	4363 · Room Service Dinner	 	 	23,385	 	 	 	2.9	%	 	 	21,405	 	 	 	2.8	%	 	 	1,981	 	 	 	4.2	%	 	 	26,820	 	 	 	3.0	%	 	 	(3,434	)	 	 	4.2	%	 	 	113,432.05	 	 	 	2.3	%
	4367 · Room Service Delivery	 	 	2,898	 	 	 	0.4	%	 	 	5,978	 	 	 	0.8	%	 	 	(3,081	)	 	 	-6.5	%	 	 	8,236	 	 	 	0.9	%	 	 	(5,338	)	 	 	6.5	%	 	 	34,318.00	 	 	 	0.7	%
	Total Food Revenue	 	 	568,795	 	 	 	70.1	%	 	 	525,760	 	 	 	68.8	%	 	 	43,034	 	 	 	90.5	%	 	 	635,561	 	 	 	71.1	%	 	 	(66,767	)	 	 	81.1	%	 	 	3,455,324	 	 	 	71.1	%
	Food Revenue Summary	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	  Restaurant	 	 	437,424	 	 	 	53.9	%	 	 	404,228	 	 	 	52.9	%	 	 	33,196	 	 	 	69.8	%	 	 	417,143	 	 	 	46.7	%	 	 	20,281	 	 	 	-24.6	%	 	 	2,390,760	 	 	 	49.2	%
	  Veranda	 	 	52,746	 	 	 	6.5	%	 	 	-	 	 	 	0.0	%	 	 	52,746	 	 	 	111.0	%	 	 	61,092	 	 	 	6.8	%	 	 	(8,346	)	 	 	10.1	%	 	 	265,212	 	 	 	5.5	%
	  Banquets	 	 	15,622	 	 	 	1.9	%	 	 	16,076	 	 	 	2.1	%	 	 	(454	)	 	 	-1.0	%	 	 	29,657	 	 	 	3.3	%	 	 	(14,036	)	 	 	17.0	%	 	 	90,018	 	 	 	1.9	%
	  Catering	 	 	5,832	 	 	 	0.7	%	 	 	52,117	 	 	 	6.8	%	 	 	(46,285	)	 	 	-97.4	%	 	 	63,180	 	 	 	7.1	%	 	 	(57,348	)	 	 	69.6	%	 	 	415,000	 	 	 	8.5	%
	  Room Service	 	 	57,171	 	 	 	7.0	%	 	 	53,339	 	 	 	7.0	%	 	 	3,832	 	 	 	8.1	%	 	 	64,490	 	 	 	7.2	%	 	 	(7,318	)	 	 	8.9	%	 	 	294,335	 	 	 	6.1	%
	Total Food Revenue	 	 	568,795	 	 	 	70.1	%	 	 	525,760	 	 	 	68.8	%	 	 	43,034	 	 	 	90.5	%	 	 	635,561	 	 	 	71.1	%	 	 	(66,767	)	 	 	81.1	%	 	 	3,455,324	 	 	 	71.1	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Beverage Revenue	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Beer Revenue	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4314 · Restaurant Beer Sales	 	 	2,078	 	 	 	0.3	%	 	 	5,764	 	 	 	0.8	%	 	 	(3,686	)	 	 	-7.8	%	 	 	2,040	 	 	 	0.2	%	 	 	38	 	 	 	0.0	%	 	 	13,121	 	 	 	0.3	%
	4314v · Veranda Beer Sales	 	 	4,238	 	 	 	0.5	%	 	 	-	 	 	 	0.0	%	 	 	4,238	 	 	 	8.9	%	 	 	4,302	 	 	 	0.5	%	 	 	(64	)	 	 	0.1	%	 	 	21,175	 	 	 	0.4	%
	4366 · Room Service Beer Sales	 	 	402	 	 	 	0.0	%	 	 	379	 	 	 	0.0	%	 	 	24	 	 	 	0.0	%	 	 	465	 	 	 	0.1	%	 	 	(63	)	 	 	0.1	%	 	 	2,189	 	 	 	0.0	%
	4329 · Banquet Beer Sales	 	 	103	 	 	 	0.0	%	 	 	387	 	 	 	0.1	%	 	 	(284	)	 	 	-0.6	%	 	 	967	 	 	 	0.1	%	 	 	(864	)	 	 	1.0	%	 	 	3,027	 	 	 	0.1	%
	4350 · Catering Beer	 	 	402	 	 	 	0.0	%	 	 	3,450	 	 	 	0.5	%	 	 	(3,048	)	 	 	-6.4	%	 	 	4,381	 	 	 	0.5	%	 	 	(3,979	)	 	 	4.8	%	 	 	39,004	 	 	 	0.8	%
	Subtotal - Beer Revenue	 	 	7,223	 	 	 	0.9	%	 	 	9,979	 	 	 	1.3	%	 	 	(2,756	)	 	 	-5.8	%	 	 	12,154	 	 	 	1.4	%	 	 	(4,932	)	 	 	6.0	%	 	 	78,516	 	 	 	1.6	%
	Liquor Revenue	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4316 · Restaurant Liquor Sales	 	 	20,509	 	 	 	2.5	%	 	 	42,844	 	 	 	5.6	%	 	 	(22,336	)	 	 	-47.0	%	 	 	18,108	 	 	 	2.0	%	 	 	2,400	 	 	 	-2.9	%	 	 	86,717	 	 	 	1.8	%
	4316v · Veranda Liquor Sales	 	 	30,348	 	 	 	3.7	%	 	 	-	 	 	 	0.0	%	 	 	30,348	 	 	 	63.9	%	 	 	26,740	 	 	 	3.0	%	 	 	3,608	 	 	 	-4.4	%	 	 	109,987	 	 	 	2.3	%
	4325 · Banquet Liquor	 	 	907	 	 	 	0.1	%	 	 	490	 	 	 	0.1	%	 	 	416	 	 	 	0.9	%	 	 	746	 	 	 	0.1	%	 	 	161	 	 	 	-0.2	%	 	 	2,099	 	 	 	0.0	%
	4364 · Room Service Liquor Sales	 	 	1,251	 	 	 	0.2	%	 	 	1,110	 	 	 	0.1	%	 	 	141	 	 	 	0.3	%	 	 	976	 	 	 	0.1	%	 	 	275	 	 	 	-0.3	%	 	 	2,828	 	 	 	0.1	%
	4343 · Catering Liquor Sales	 	 	418	 	 	 	0.1	%	 	 	3,072	 	 	 	0.4	%	 	 	(2,654	)	 	 	-5.6	%	 	 	4,042	 	 	 	0.5	%	 	 	(3,624	)	 	 	4.4	%	 	 	63,135	 	 	 	1.3	%
	Subtotal - Liquor Revenue	 	 	53,432	 	 	 	6.6	%	 	 	47,517	 	 	 	6.2	%	 	 	5,916	 	 	 	12.4	%	 	 	50,611	 	 	 	5.7	%	 	 	2,821	 	 	 	-3.4	%	 	 	264,766	 	 	 	5.4	%
	Wine Revenue	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4315 · Restaurant Wine Sales	 	 	111,505	 	 	 	13.7	%	 	 	131,236	 	 	 	17.2	%	 	 	(19,731	)	 	 	-41.5	%	 	 	100,454	 	 	 	11.2	%	 	 	11,051	 	 	 	-13.4	%	 	 	481,867	 	 	 	9.9	%
	4315v · Veranda Wine Sales	 	 	40,195	 	 	 	5.0	%	 	 	-	 	 	 	0.0	%	 	 	40,195	 	 	 	84.6	%	 	 	41,280	 	 	 	4.6	%	 	 	(1,085	)	 	 	1.3	%	 	 	214,605	 	 	 	4.4	%
	4326 · Banquet Wine Sales	 	 	2,851	 	 	 	0.4	%	 	 	3,001	 	 	 	0.4	%	 	 	(150	)	 	 	-0.3	%	 	 	2,366	 	 	 	0.3	%	 	 	485	 	 	 	-0.6	%	 	 	7,369	 	 	 	0.2	%
	4351 · Catering Wine	 	 	2,332	 	 	 	0.3	%	 	 	12,552	 	 	 	1.6	%	 	 	(10,220	)	 	 	-21.5	%	 	 	14,855	 	 	 	1.7	%	 	 	(12,523	)	 	 	15.2	%	 	 	87,817	 	 	 	1.8	%
	4365 · Room Service Wine Sales	 	 	7,882	 	 	 	1.0	%	 	 	8,462	 	 	 	1.1	%	 	 	(580	)	 	 	-1.2	%	 	 	11,313	 	 	 	1.3	%	 	 	(3,431	)	 	 	4.2	%	 	 	41,716	 	 	 	0.9	%
	Subtotal - Wine Revenue	 	 	164,766	 	 	 	20.3	%	 	 	155,252	 	 	 	20.3	%	 	 	9,514	 	 	 	20.0	%	 	 	170,268	 	 	 	19.0	%	 	 	(5,502	)	 	 	6.7	%	 	 	833,374	 	 	 	17.1	%
	Total Beverage Revenue	 	 	225,421	 	 	 	27.8	%	 	 	212,747	 	 	 	27.8	%	 	 	12,674	 	 	 	26.7	%	 	 	233,033	 	 	 	26.1	%	 	 	(7,612	)	 	 	9.2	%	 	 	1,176,656	 	 	 	24.2	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Miscellaneous Revenue	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4319 · Resteraunt Complimentary Accoun	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	4328 · Banquet Miscellaneous	 	 	1,355	 	 	 	0.2	%	 	 	1,879	 	 	 	0.2	%	 	 	(524	)	 	 	-1.1	%	 	 	2,145	 	 	 	0.2	%	 	 	(790	)	 	 	1.0	%	 	 	11,602	 	 	 	0.2	%
	4330 · Banquet Equipment Rental	 	 	3,146	 	 	 	0.4	%	 	 	3,822	 	 	 	0.5	%	 	 	(676	)	 	 	-1.4	%	 	 	2,545	 	 	 	0.3	%	 	 	601	 	 	 	-0.7	%	 	 	10,094	 	 	 	0.2	%
	4331 · Banquet Meeting Room	 	 	2,650	 	 	 	0.3	%	 	 	671	 	 	 	0.1	%	 	 	1,979	 	 	 	4.2	%	 	 	185	 	 	 	0.0	%	 	 	2,465	 	 	 	-3.0	%	 	 	4,206	 	 	 	0.1	%
	4345 · Catering Miscellaneous	 	 	2,528	 	 	 	0.3	%	 	 	6,081	 	 	 	0.8	%	 	 	(3,553	)	 	 	-7.5	%	 	 	6,736	 	 	 	0.8	%	 	 	(4,209	)	 	 	5.1	%	 	 	89,661	 	 	 	1.8	%
	4347 · Catering Equipment Rental	 	 	560	 	 	 	0.1	%	 	 	1,542	 	 	 	0.2	%	 	 	(982	)	 	 	-2.1	%	 	 	1,435	 	 	 	0.2	%	 	 	(875	)	 	 	1.1	%	 	 	5,827	 	 	 	0.1	%
	4348 · Catering Meeting Room	 	 	7,126	 	 	 	0.9	%	 	 	11,551	 	 	 	1.5	%	 	 	(4,425	)	 	 	-9.3	%	 	 	12,298	 	 	 	1.4	%	 	 	(5,172	)	 	 	6.3	%	 	 	108,765	 	 	 	2.2	%
	4370 · Micros Interface Issues	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	Total Miscellaneous Revenue	 	 	17,364	 	 	 	2.1	%	 	 	25,546	 	 	 	3.3	%	 	 	(8,182	)	 	 	-17.2	%	 	 	25,345	 	 	 	2.8	%	 	 	(7,981	)	 	 	9.7	%	 	 	230,155	 	 	 	4.7	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Food & Beverage Revenue	 	 	811,580	 	 	 	100.0	%	 	 	764,053	 	 	 	100.0	%	 	 	47,527	 	 	 	100.0	%	 	 	893,940	 	 	 	100.0	%	 	 	(82,359	)	 	 	100.0	%	 	 	4,862,136	 	 	 	100.0	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Cost of Goods Sold	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	6300 · Cost of Food & Beverage	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	6310 · Cost of Sales-Food	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	63100P · Pastry food supplies	 	 	(1,460	)	 	 	-0.3	%	 	 	-	 	 	 	0.0	%	 	 	(1,460	)	 	 	-3.4	%	 	 	5,454	 	 	 	0.9	%	 	 	(6,914	)	 	 	10.4	%	 	 	20,846	 	 	 	0.6	%
	631001 · Meat	 	 	46,628	 	 	 	8.2	%	 	 	-	 	 	 	0.0	%	 	 	46,628	 	 	 	108.4	%	 	 	52,738	 	 	 	8.3	%	 	 	(6,110	)	 	 	9.2	%	 	 	227,075	 	 	 	6.6	%
	631002 · Seafood	 	 	36,835	 	 	 	6.5	%	 	 	-	 	 	 	0.0	%	 	 	36,835	 	 	 	85.6	%	 	 	33,283	 	 	 	5.2	%	 	 	3,551	 	 	 	-5.3	%	 	 	206,858	 	 	 	6.0	%
	631003 · Poultry	 	 	6,766	 	 	 	1.2	%	 	 	-	 	 	 	0.0	%	 	 	6,766	 	 	 	15.7	%	 	 	2,601	 	 	 	0.4	%	 	 	4,164	 	 	 	-6.2	%	 	 	8,505	 	 	 	0.2	%
	631004 · Produce	 	 	42,313	 	 	 	7.4	%	 	 	-	 	 	 	0.0	%	 	 	42,313	 	 	 	98.3	%	 	 	33,415	 	 	 	5.3	%	 	 	8,898	 	 	 	-13.3	%	 	 	187,814	 	 	 	5.4	%
	631005 · Dairy	 	 	18,288	 	 	 	3.2	%	 	 	-	 	 	 	0.0	%	 	 	18,288	 	 	 	42.5	%	 	 	17,586	 	 	 	2.8	%	 	 	702	 	 	 	-1.1	%	 	 	88,889	 	 	 	2.6	%
	631006 · Bread	 	 	4,547	 	 	 	0.8	%	 	 	-	 	 	 	0.0	%	 	 	4,547	 	 	 	10.6	%	 	 	4,387	 	 	 	0.7	%	 	 	159	 	 	 	-0.2	%	 	 	23,332	 	 	 	0.7	%
	631007 · Other Food	 	 	45,450	 	 	 	8.0	%	 	 	-	 	 	 	0.0	%	 	 	45,450	 	 	 	105.6	%	 	 	33,012	 	 	 	5.2	%	 	 	12,438	 	 	 	-18.6	%	 	 	229,194	 	 	 	6.6	%
	631007S · Shamrock Delinquent	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	631009 · Cost Of Goods Sold-EDR	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	9,158	 	 	 	1.4	%	 	 	(9,158	)	 	 	13.7	%	 	 	0	 	 	 	0.0	%
	6310 · Restaurant Cost of Sales-Food - Other	 	 	-	 	 	 	0.0	%	 	 	156,079	 	 	 	29.7	%	 	 	(156,079	)	 	 	-362.7	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	Total 6310 · Cost of Sales-Food	 	 	199,367	 	 	 	35.1	%	 	 	156,079	 	 	 	29.7	%	 	 	43,288	 	 	 	100.6	%	 	 	191,636	 	 	 	30.2	%	 	 	7,731	 	 	 	-11.6	%	 	 	992,514	 	 	 	28.7	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Cost of Sales - Beverage	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	6311 · Cost of Goods - Liquor	 	 	10,008	 	 	 	18.7	%	 	 	7,487	 	 	 	15.8	%	 	 	2,521	 	 	 	42.6	%	 	 	8,173	 	 	 	16.1	%	 	 	1,835	 	 	 	65.1	%	 	 	48,607	 	 	 	18.4	%
	6312 · Cost of Goods-Wine	 	 	54,693	 	 	 	33.2	%	 	 	49,752	 	 	 	32.0	%	 	 	4,942	 	 	 	51.9	%	 	 	47,410	 	 	 	27.8	%	 	 	7,283	 	 	 	-132.4	%	 	 	220,959	 	 	 	26.5	%
	6313 · Cost of Goods-Beer	 	 	1,554	 	 	 	21.5	%	 	 	3,561	 	 	 	35.7	%	 	 	(2,007	)	 	 	72.8	%	 	 	3,895	 	 	 	32.0	%	 	 	(2,342	)	 	 	47.5	%	 	 	12,592	 	 	 	16.0	%
	Cost of Sales - Beverage	 	 	66,255	 	 	 	29.4	%	 	 	60,799	 	 	 	28.6	%	 	 	5,456	 	 	 	43.0	%	 	 	59,478	 	 	 	25.5	%	 	 	6,777	 	 	 	-89.0	%	 	 	282,157	 	 	 	24.0	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Miscellaneous	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	6554 · Cost of Goods B&C	 	 	3,415	 	 	 	0.4	%	 	 	-	 	 	 	0.0	%	 	 	3,415	 	 	 	-41.7	%	 	 	4,378	 	 	 	0.5	%	 	 	(963	)	 	 	12.1	%	 	 	73,013	 	 	 	1.5	%
	6300 · Cost of Food & Beverage - Other	 	 	-	 	 	 	0.0	%	 	 	3,421	 	 	 	0.4	%	 	 	(3,421	)	 	 	41.8	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	Total Miscellaneous	 	 	3,415	 	 	 	0.4	%	 	 	3,421	 	 	 	0.4	%	 	 	(5	)	 	 	0.1	%	 	 	4,378	 	 	 	0.5	%	 	 	(963	)	 	 	12.1	%	 	 	73,013	 	 	 	1.5	%
	Total COGS	 	 	269,037	 	 	 	33.1	%	 	 	220,299	 	 	 	28.8	%	 	 	48,738	 	 	 	102.5	%	 	 	255,492	 	 	 	28.6	%	 	 	13,546	 	 	 	-16.4	%	 	 	1,347,684	 	 	 	27.7	%
	Gross Profit	 	 	542,543	 	 	 	66.9	%	 	 	543,754	 	 	 	71.2	%	 	 	(1,211	)	 	 	-2.5	%	 	 	638,448	 	 	 	71.4	%	 	 	(95,905	)	 	 	116.4	%	 	 	3,514,452	 	 	 	72.3	%
	 	 	 	 	 	 	 	898071.0	%	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Expense	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5000 · Payroll & Benefits	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5300000 · F&B Salaries & Wages	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5363000 · Restaurant Salary & Wages	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5363150 · Restaurant Supervisor	 	 	935	 	 	 	0.1	%	 	 	-	 	 	 	0.0	%	 	 	935	 	 	 	2.0	%	 	 	-	 	 	 	0.0	%	 	 	935	 	 	 	-1.1	%	 	 	2,331	 	 	 	0.0	%
	5363160 · Restaurant Chef	 	 	44,829	 	 	 	5.5	%	 	 	66,499	 	 	 	8.7	%	 	 	(21,670	)	 	 	-45.6	%	 	 	54,107	 	 	 	6.1	%	 	 	(9,279	)	 	 	11.3	%	 	 	210,613	 	 	 	4.3	%
	5363170 · Manager, Restauant	 	 	54,500	 	 	 	6.7	%	 	 	47,661	 	 	 	6.2	%	 	 	6,840	 	 	 	14.4	%	 	 	42,603	 	 	 	4.8	%	 	 	11,898	 	 	 	-14.4	%	 	 	194,044	 	 	 	4.0	%
	5363199 · F&B Shared Services	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	493	 	 	 	0.0	%
	5363300 · Restaurant Server	 	 	14,263	 	 	 	492357.0	%	 	 	13,433	 	 	 	1.8	%	 	 	829	 	 	 	1.7	%	 	 	13,089	 	 	 	1.5	%	 	 	1,174	 	 	 	-1.4	%	 	 	65,071	 	 	 	1.3	%
	5363305 · Restaurant Expeditor	 	 	16,157	 	 	 	2.0	%	 	 	17,120	 	 	 	2.2	%	 	 	(964	)	 	 	-2.0	%	 	 	11,839	 	 	 	1.3	%	 	 	4,317	 	 	 	-5.2	%	 	 	53,278	 	 	 	1.1	%
	5363306 · Room Service Coordinator	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	2,625	 	 	 	0.3	%	 	 	(2,625	)	 	 	3.2	%	 	 	25,957	 	 	 	0.5	%
	5363310 · Restaurant Busser	 	 	14,960	 	 	 	1.8	%	 	 	-	 	 	 	0.0	%	 	 	14,960	 	 	 	31.5	%	 	 	16,550	 	 	 	1.9	%	 	 	(1,590	)	 	 	1.9	%	 	 	79,732	 	 	 	1.6	%
	5363320 · Restaurant Bartendar	 	 	10,575	 	 	 	1.3	%	 	 	10,017	 	 	 	1.3	%	 	 	559	 	 	 	1.2	%	 	 	9,581	 	 	 	1.1	%	 	 	994	 	 	 	-1.2	%	 	 	45,512	 	 	 	0.9	%
	5363330 · Restaurant Cashier/Hostess	 	 	15,467	 	 	 	1.9	%	 	 	15,524	 	 	 	2.0	%	 	 	(57	)	 	 	-0.1	%	 	 	14,398	 	 	 	1.6	%	 	 	1,069	 	 	 	-1.3	%	 	 	68,848	 	 	 	1.4	%
	5363400 · Warewasher/Dishwasher	 	 	29,215	 	 	 	3.6	%	 	 	22,822	 	 	 	3.0	%	 	 	6,393	 	 	 	13.5	%	 	 	20,075	 	 	 	2.2	%	 	 	9,140	 	 	 	-11.1	%	 	 	101,362	 	 	 	2.1	%
	5363420 · Cook	 	 	93,186	 	 	 	11.5	%	 	 	85,368	 	 	 	11.2	%	 	 	7,818	 	 	 	16.5	%	 	 	80,404	 	 	 	9.0	%	 	 	12,782	 	 	 	-15.5	%	 	 	371,293	 	 	 	7.6	%
	5363430 · Pastry Chef	 	 	17,817	 	 	 	2.2	%	 	 	13,675	 	 	 	1.8	%	 	 	4,142	 	 	 	8.7	%	 	 	18,501	 	 	 	2.1	%	 	 	(683	)	 	 	0.8	%	 	 	85,214	 	 	 	1.8	%
	5363440 · EDR Cook	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	5363450 · EDR Chef	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	634	 	 	 	0.1	%	 	 	(634	)	 	 	0.8	%	 	 	2,195	 	 	 	0.0	%
	5363610 · Valet	 	 	24,838	 	 	 	3.1	%	 	 	23,391	 	 	 	3.1	%	 	 	1,447	 	 	 	3.0	%	 	 	24,157	 	 	 	2.7	%	 	 	681	 	 	 	-0.8	%	 	 	-	 	 	 	0.0	%
	5363999 · Restaurant Other Pay	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	5300000 · F&B Salaries & Wages - Other	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	Total 5363000 · Restaurant Salary & Wages	 	 	336,741	 	 	 	41.5	%	 	 	315,510	 	 	 	41.3	%	 	 	21,231	 	 	 	44.7	%	 	 	308,561	 	 	 	34.5	%	 	 	28,180	 	 	 	-34.2	%	 	 	1,305,943	 	 	 	26.9	%
	5363050 · Restaurant Taxes & Benefits	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5351 · F&B Payroll Taxes	 	 	56,997	 	 	 	7.0	%	 	 	61,558	 	 	 	8.1	%	 	 	(4,560	)	 	 	-9.6	%	 	 	52,197	 	 	 	5.8	%	 	 	4,800	 	 	 	-5.8	%	 	 	186,027	 	 	 	3.8	%

 

	5352 · F&B Workers' Comp	 	 	13,418	 	 	 	1.7	%	 	 	6,218	 	 	 	0.8	%	 	 	7,200	 	 	 	15.2	%	 	 	4,380	 	 	 	0.5	%	 	 	9,038	 	 	 	-11.0	%	 	 	13,382	 	 	 	0.3	%
	5353 · F&B Employ Benefits	 	 	30,888	 	 	 	3.8	%	 	 	27,544	 	 	 	3.6	%	 	 	3,344	 	 	 	7.0	%	 	 	29,390	 	 	 	3.3	%	 	 	1,498	 	 	 	-1.8	%	 	 	131,580	 	 	 	2.7	%
	5355 · F&B PTO	 	 	10,022	 	 	 	1.2	%	 	 	13,544	 	 	 	1.8	%	 	 	(3,522	)	 	 	-7.4	%	 	 	14,252	 	 	 	1.6	%	 	 	(4,230	)	 	 	5.1	%	 	 	39,620	 	 	 	0.8	%
	5356 · F&B Employ Meals	 	 	10,393	 	 	 	1.3	%	 	 	13,217	 	 	 	1.7	%	 	 	(2,823	)	 	 	-5.9	%	 	 	10,753	 	 	 	1.2	%	 	 	(360	)	 	 	0.4	%	 	 	42,435	 	 	 	0.9	%
	5399 · F&B Shared Services Fringes	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	209	 	 	 	0.0	%
	Total 5363050 · Restaurant Taxes & Benefits	 	 	121,719	 	 	 	15.0	%	 	 	122,080	 	 	 	16.0	%	 	 	(361	)	 	 	-0.8	%	 	 	110,972	 	 	 	12.4	%	 	 	10,747	 	 	 	-13.0	%	 	 	413,254	 	 	 	8.5	%
	5368000 · Banquets Salary & Wages	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5368150 · Banquet Captain/Supervisor	 	 	2,567	 	 	 	0.3	%	 	 	4,802	 	 	 	0.6	%	 	 	(2,235	)	 	 	-4.7	%	 	 	5,973	 	 	 	0.7	%	 	 	(3,406	)	 	 	4.1	%	 	 	22,945	 	 	 	0.5	%
	5368170 · Manager, Banquet	 	 	12,363	 	 	 	1.5	%	 	 	13,992	 	 	 	1.8	%	 	 	(1,629	)	 	 	-3.4	%	 	 	9,478	 	 	 	1.1	%	 	 	2,885	 	 	 	-3.5	%	 	 	37,387	 	 	 	0.8	%
	5368300 · Banquet Server	 	 	1,772	 	 	 	0.2	%	 	 	3,623	 	 	 	0.5	%	 	 	(1,851	)	 	 	-3.9	%	 	 	4,207	 	 	 	0.5	%	 	 	(2,435	)	 	 	3.0	%	 	 	22,202	 	 	 	0.5	%
	5368320 · Banquet Bartender	 	 	-	 	 	 	0.0	%	 	 	803	 	 	 	0.1	%	 	 	(803	)	 	 	-1.7	%	 	 	989	 	 	 	0.1	%	 	 	(989	)	 	 	1.2	%	 	 	4,738	 	 	 	0.1	%
	5368560 · Banquet House Attendant	 	 	427	 	 	 	0.1	%	 	 	1,779	 	 	 	0.2	%	 	 	(1,353	)	 	 	-2.8	%	 	 	2,027	 	 	 	0.2	%	 	 	(1,600	)	 	 	1.9	%	 	 	21,323	 	 	 	0.4	%
	Total 5368000 · Banquets Salary & Wages	 	 	17,128	 	 	 	2.1	%	 	 	25,000	 	 	 	3.3	%	 	 	(7,872	)	 	 	-16.6	%	 	 	22,674	 	 	 	2.5	%	 	 	(5,545	)	 	 	6.7	%	 	 	108,594	 	 	 	2.2	%
	5368050 · Banquet Taxes & Benefits	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	53655 · Banquets PTO	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	53681 · Banquet PR Taxes	 	 	3,510	 	 	 	0.4	%	 	 	-	 	 	 	0.0	%	 	 	3,510	 	 	 	7.4	%	 	 	5,398	 	 	 	0.6	%	 	 	(1,888	)	 	 	2.3	%	 	 	22,902	 	 	 	0.5	%
	53682 · Banquet Workers' Comp	 	 	3,394	 	 	 	0.4	%	 	 	-	 	 	 	0.0	%	 	 	3,394	 	 	 	7.1	%	 	 	1,093	 	 	 	0.1	%	 	 	2,302	 	 	 	-2.8	%	 	 	3,665	 	 	 	0.1	%
	53683 · Banquet Employ Benefits	 	 	1,315	 	 	 	0.2	%	 	 	-	 	 	 	0.0	%	 	 	1,315	 	 	 	2.8	%	 	 	(860	)	 	 	-0.1	%	 	 	2,175	 	 	 	-2.6	%	 	 	2,834	 	 	 	0.1	%
	53685 · Banquet Employee PTO	 	 	908	 	 	 	0.1	%	 	 	-	 	 	 	0.0	%	 	 	908	 	 	 	1.9	%	 	 	273	 	 	 	0.0	%	 	 	635	 	 	 	-0.8	%	 	 	2,214	 	 	 	0.0	%
	53686 · Banquet Employ Meals	 	 	2,772	 	 	 	0.3	%	 	 	-	 	 	 	0.0	%	 	 	2,772	 	 	 	5.8	%	 	 	2,661	 	 	 	0.3	%	 	 	110	 	 	 	-0.1	%	 	 	11,304	 	 	 	0.2	%
	Total 5368050 · Banquet Taxes & Benefits	 	 	11,898	 	 	 	1.5	%	 	 	-	 	 	 	0.0	%	 	 	11,898	 	 	 	25.0	%	 	 	8,565	 	 	 	1.0	%	 	 	3,333	 	 	 	-4.0	%	 	 	42,918	 	 	 	0.9	%
	Total 5300000 · F&B Salaries & Wages	 	 	487,486	 	 	 	60.1	%	 	 	462,590	 	 	 	60.5	%	 	 	24,897	 	 	 	52.4	%	 	 	450,772	 	 	 	50.4	%	 	 	36,714	 	 	 	-44.6	%	 	 	1,870,709	 	 	 	38.5	%
	Total 5000 · Payroll & Benefits	 	 	487,486	 	 	 	60.1	%	 	 	462,590	 	 	 	60.5	%	 	 	24,897	 	 	 	52.4	%	 	 	450,772	 	 	 	50.4	%	 	 	36,714	 	 	 	-44.6	%	 	 	1,870,709	 	 	 	38.5	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	8300 · Food & Beverage	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	8300 · Food & Beverage - Other	 	 	-	 	 	 	0.0	%	 	 	2,322	 	 	 	0.3	%	 	 	(2,322	)	 	 	-4.9	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8312 · Guest Satisfaction	 	 	3,105	 	 	 	0.4	%	 	 	3,340	 	 	 	0.4	%	 	 	(235	)	 	 	-0.5	%	 	 	3,120	 	 	 	0.3	%	 	 	(15	)	 	 	0.0	%	 	 	21,312	 	 	 	0.4	%
	8313 · Operating Supplies	 	 	3,082	 	 	 	0.4	%	 	 	2,936	 	 	 	0.4	%	 	 	146	 	 	 	0.3	%	 	 	3,754	 	 	 	0.4	%	 	 	(672	)	 	 	0.8	%	 	 	18,621	 	 	 	0.4	%
	8314 · Beverage Operating Supplies	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	86	 	 	 	0.0	%
	8318 · Business Meetings	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	107	 	 	 	0.0	%	 	 	(107	)	 	 	0.1	%	 	 	107	 	 	 	0.0	%
	8320 · Menu Testing	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	245	 	 	 	0.0	%
	8326 · Equipment Repair	 	 	131	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	131	 	 	 	0.3	%	 	 	-	 	 	 	0.0	%	 	 	131	 	 	 	-0.2	%	 	 	1,179	 	 	 	0.0	%
	8327 · Equipment Rental	 	 	2,409	 	 	 	0.3	%	 	 	2,210	 	 	 	0.3	%	 	 	199	 	 	 	0.4	%	 	 	2,024	 	 	 	0.2	%	 	 	384	 	 	 	-0.5	%	 	 	11,349	 	 	 	0.2	%
	8330 · Outside Laundry	 	 	356	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	356	 	 	 	0.7	%	 	 	-	 	 	 	0.0	%	 	 	356	 	 	 	-0.4	%	 	 	112	 	 	 	0.0	%
	8335 · Uniforms	 	 	5,651	 	 	 	0.7	%	 	 	7,124	 	 	 	0.9	%	 	 	(1,473	)	 	 	-3.1	%	 	 	7,174	 	 	 	0.8	%	 	 	(1,523	)	 	 	1.8	%	 	 	27,114	 	 	 	0.6	%
	8343 · Linens	 	 	23,466	 	 	 	2.9	%	 	 	18,009	 	 	 	2.4	%	 	 	5,457	 	 	 	11.5	%	 	 	17,157	 	 	 	1.9	%	 	 	6,309	 	 	 	-7.7	%	 	 	68,080	 	 	 	1.4	%
	8344 · Linens- Banquet	 	 	-	 	 	 	0.0	%	 	 	3,672	 	 	 	0.5	%	 	 	(3,672	)	 	 	-7.7	%	 	 	4,333	 	 	 	0.5	%	 	 	(4,333	)	 	 	5.3	%	 	 	20,528	 	 	 	0.4	%
	8351 · Cleaning Supplies	 	 	4,069	 	 	 	0.5	%	 	 	2,744	 	 	 	0.4	%	 	 	1,326	 	 	 	2.8	%	 	 	3,307	 	 	 	0.4	%	 	 	762	 	 	 	-0.9	%	 	 	14,523	 	 	 	0.3	%
	8359 · Small Equipment	 	 	1,082	 	 	 	0.1	%	 	 	1,577	 	 	 	0.2	%	 	 	(495	)	 	 	-1.0	%	 	 	1,592	 	 	 	0.2	%	 	 	(510	)	 	 	0.6	%	 	 	4,110	 	 	 	0.1	%
	8359P · Pastry Operating Small Equipmen	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	113	 	 	 	0.0	%	 	 	(113	)	 	 	0.1	%	 	 	2,590	 	 	 	0.1	%
	8361 · Computer Maint. & Support	 	 	8,512	 	 	 	1.0	%	 	 	3,214	 	 	 	0.4	%	 	 	5,298	 	 	 	11.1	%	 	 	2,116	 	 	 	0.2	%	 	 	6,396	 	 	 	-7.8	%	 	 	10,747	 	 	 	0.2	%
	8362 · Glassware/Utensils/Silverware	 	 	4,980	 	 	 	0.6	%	 	 	7,509	 	 	 	1.0	%	 	 	(2,529	)	 	 	-5.3	%	 	 	7,629	 	 	 	0.9	%	 	 	(2,649	)	 	 	3.2	%	 	 	32,882	 	 	 	0.7	%
	8363 · Paper Supplies	 	 	7,367	 	 	 	0.9	%	 	 	4,804	 	 	 	0.6	%	 	 	2,563	 	 	 	5.4	%	 	 	5,076	 	 	 	0.6	%	 	 	2,290	 	 	 	-2.8	%	 	 	20,946	 	 	 	0.4	%
	8364 · Decorations	 	 	4,512	 	 	 	0.6	%	 	 	4,612	 	 	 	0.6	%	 	 	(100	)	 	 	-0.2	%	 	 	3,850	 	 	 	0.4	%	 	 	661	 	 	 	-0.8	%	 	 	21,852	 	 	 	0.4	%
	8367 · Propane	 	 	-	 	 	 	0.0	%	 	 	209	 	 	 	0.0	%	 	 	(209	)	 	 	-0.4	%	 	 	199	 	 	 	0.0	%	 	 	(199	)	 	 	0.2	%	 	 	6,144	 	 	 	0.1	%
	8370 · Contract Labor	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	4,075	 	 	 	0.1	%
	8371 · Food Promotion	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	883	 	 	 	0.0	%
	8372 · Firewood	 	 	694	 	 	 	0.1	%	 	 	1,157	 	 	 	0.2	%	 	 	(463	)	 	 	-1.0	%	 	 	1,319	 	 	 	0.1	%	 	 	(625	)	 	 	0.8	%	 	 	3,719	 	 	 	0.1	%
	8374 · Music/Entertainment	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	500	 	 	 	0.0	%
	8375 · Cable TV	 	 	565	 	 	 	0.1	%	 	 	1,668	 	 	 	0.2	%	 	 	(1,103	)	 	 	-2.3	%	 	 	1,620	 	 	 	0.2	%	 	 	(1,055	)	 	 	1.3	%	 	 	2,750	 	 	 	0.1	%
	8377 · Menus	 	 	551	 	 	 	0.1	%	 	 	551	 	 	 	0.1	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	551	 	 	 	-0.7	%	 	 	4,213	 	 	 	0.1	%
	8378 · Express Mail	 	 	18	 	 	 	0.0	%	 	 	270	 	 	 	0.0	%	 	 	(252	)	 	 	-0.5	%	 	 	252	 	 	 	0.0	%	 	 	(233	)	 	 	0.3	%	 	 	727	 	 	 	0.0	%
	8380 · Postage	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	117	 	 	 	0.0	%
	8381 · Dues & Subscriptions	 	 	605	 	 	 	0.1	%	 	 	651	 	 	 	0.1	%	 	 	(46	)	 	 	-0.1	%	 	 	416	 	 	 	0.0	%	 	 	189	 	 	 	-0.2	%	 	 	512	 	 	 	0.0	%
	8384 · Printing	 	 	547	 	 	 	0.1	%	 	 	322	 	 	 	0.0	%	 	 	225	 	 	 	0.5	%	 	 	840	 	 	 	0.1	%	 	 	(294	)	 	 	0.4	%	 	 	2,781	 	 	 	0.1	%
	8385 · Telephone Cell & Radio	 	 	950	 	 	 	0.1	%	 	 	1,093	 	 	 	0.1	%	 	 	(143	)	 	 	-0.3	%	 	 	1,125	 	 	 	0.1	%	 	 	(175	)	 	 	0.2	%	 	 	4,415	 	 	 	0.1	%
	8387 · Employee Recruitment	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8388 · Signage	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8389 · Miscellaneous Expenses	 	 	-	 	 	 	0.0	%	 	 	241	 	 	 	0.0	%	 	 	(241	)	 	 	-0.5	%	 	 	230	 	 	 	0.0	%	 	 	(230	)	 	 	0.3	%	 	 	953	 	 	 	0.0	%
	8390 · Office Supplies	 	 	954	 	 	 	0.1	%	 	 	1,227	 	 	 	0.2	%	 	 	(273	)	 	 	-0.6	%	 	 	1,409	 	 	 	0.2	%	 	 	(455	)	 	 	0.6	%	 	 	5,016	 	 	 	0.1	%
	8391 · Employee Relations & Training	 	 	-	 	 	 	0.0	%	 	 	10	 	 	 	0.0	%	 	 	(10	)	 	 	0.0	%	 	 	10	 	 	 	0.0	%	 	 	(10	)	 	 	0.0	%	 	 	1,681	 	 	 	0.0	%
	8393 · Licenses & Permits	 	 	228	 	 	 	0.0	%	 	 	(113	)	 	 	0.0	%	 	 	341	 	 	 	0.7	%	 	 	(131	)	 	 	0.0	%	 	 	359	 	 	 	-0.4	%	 	 	(347	)	 	 	0.0	%
	8394P · Van expense-P	 	 	1,899	 	 	 	0.2	%	 	 	-	 	 	 	0.0	%	 	 	1,899	 	 	 	4.0	%	 	 	2,942	 	 	 	0.3	%	 	 	(1,043	)	 	 	1.3	%	 	 	6,561	 	 	 	0.1	%
	8395 · Equipment	 	 	440	 	 	 	0.1	%	 	 	3,135	 	 	 	0.4	%	 	 	(2,695	)	 	 	-5.7	%	 	 	3,639	 	 	 	0.4	%	 	 	(3,198	)	 	 	3.9	%	 	 	32,786	 	 	 	0.7	%
	8396 · Business Travel	 	 	192	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	192	 	 	 	0.4	%	 	 	-	 	 	 	0.0	%	 	 	192	 	 	 	-0.2	%	 	 	553	 	 	 	0.0	%
	8397 · Business Meals	 	 	-	 	 	 	0.0	%	 	 	116	 	 	 	0.0	%	 	 	(116	)	 	 	-0.2	%	 	 	116	 	 	 	0.0	%	 	 	(116	)	 	 	0.1	%	 	 	551	 	 	 	0.0	%
	8399 · Oper cost related to renovation	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8399A · Op cost renovation-construction	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8399C · Op costs - renov - construction	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8398 · Consultants	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8399 · Oper cost related to renovation - Other	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	Total 8399 · Oper cost related to renovation	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	Total 8300 · Food & Beverage	 	 	76,364	 	 	 	9.4	%	 	 	74,610	 	 	 	9.8	%	 	 	1,753	 	 	 	3.7	%	 	 	75,340	 	 	 	8.4	%	 	 	1,024	 	 	 	-1.2	%	 	 	354,974	 	 	 	7.3	%
	Total Expense	 	 	563,850	 	 	 	69.5	%	 	 	537,200	 	 	 	70.3	%	 	 	26,650	 	 	 	56.1	%	 	 	526,112	 	 	 	58.9	%	 	 	37,738	 	 	 	-45.8	%	 	 	2,225,683	 	 	 	45.8	%
	Net Income	 	 	(21,307	)	 	 	-2.6	%	 	 	6,554	 	 	 	0.9	%	 	 	(27,861	)	 	 	-58.6	%	 	 	112,336	 	 	 	12.6	%	 	 	(133,643	)	 	 	162.3	%	 	 	1,288,769	 	 	 	26.5	%

 

	 	Page 7 of 23	109.1. Ex 18(a)- 1st Part - L'Auberge_Resort March 13 Issue

  

    	 

    	 

     

L'Auberge de Sedona, LLC.

Food and Beverage Department

January through March 2013

 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	TOTAL	 
	 	 	Jan 13	 	 	% of Income	 	 	Feb 13	 	 	% of Income	 	 	Mar 13	 	 	% of Income	 	 	Jan - Mar 13	 	 	% of Income	 
	Ordinary Income/Expense	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Income	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4300 · Food & Beverage Revenue	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4310 · Restaurant Sales	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4311 · Restaurant Breakfast	 	 	10,739.97	 	 	 	6.51	%	 	 	13,356.38	 	 	 	6.05	%	 	 	30,026.03	 	 	 	7.05	%	 	 	54,122.38	 	 	 	6.67	%
	4312 · Restaurant Lunch	 	 	19,331.20	 	 	 	11.71	%	 	 	24,410.02	 	 	 	11.05	%	 	 	74,366.25	 	 	 	17.47	%	 	 	118,107.47	 	 	 	14.55	%
	4312v · Veranda Lunch	 	 	3,111.50	 	 	 	1.89	%	 	 	9,658.70	 	 	 	4.37	%	 	 	8,464.25	 	 	 	1.99	%	 	 	21,234.45	 	 	 	2.62	%
	4313 · Restaurant Dinner	 	 	53,091.99	 	 	 	32.17	%	 	 	77,246.51	 	 	 	34.97	%	 	 	134,855.70	 	 	 	31.68	%	 	 	265,194.20	 	 	 	32.68	%
	4313v · Veranda Dinner	 	 	4,355.75	 	 	 	2.64	%	 	 	8,980.60	 	 	 	4.07	%	 	 	18,175.16	 	 	 	4.27	%	 	 	31,511.51	 	 	 	3.88	%
	4314 · Restaurant Beer Sales	 	 	319.05	 	 	 	0.19	%	 	 	410.07	 	 	 	0.19	%	 	 	1,348.63	 	 	 	0.32	%	 	 	2,077.75	 	 	 	0.26	%
	4314v · Veranda Beer Sales	 	 	1,137.00	 	 	 	0.69	%	 	 	1,324.00	 	 	 	0.6	%	 	 	1,777.01	 	 	 	0.42	%	 	 	4,238.01	 	 	 	0.52	%
	4315 · Restaurant Wine Sales	 	 	24,413.39	 	 	 	14.79	%	 	 	31,908.78	 	 	 	14.45	%	 	 	55,183.10	 	 	 	12.97	%	 	 	111,505.27	 	 	 	13.74	%
	4315v · Veranda Wine Sales	 	 	8,945.00	 	 	 	5.42	%	 	 	11,407.75	 	 	 	5.16	%	 	 	19,842.52	 	 	 	4.66	%	 	 	40,195.27	 	 	 	4.95	%
	4316 · Restaurant Liquor Sales	 	 	3,859.76	 	 	 	2.34	%	 	 	5,612.34	 	 	 	2.54	%	 	 	11,036.59	 	 	 	2.59	%	 	 	20,508.69	 	 	 	2.53	%
	4316v · Veranda Liquor Sales	 	 	6,887.00	 	 	 	4.17	%	 	 	8,585.00	 	 	 	3.89	%	 	 	14,876.22	 	 	 	3.5	%	 	 	30,348.22	 	 	 	3.74	%
	Total 4310 · Restaurant Sales	 	 	136,191.61	 	 	 	82.51	%	 	 	192,900.15	 	 	 	87.33	%	 	 	369,951.46	 	 	 	86.92	%	 	 	699,043.22	 	 	 	86.13	%
	4320 · Banquet Sales	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4321 · Banquet Coffee Break	 	 	1,645.50	 	 	 	1.0	%	 	 	380.00	 	 	 	0.17	%	 	 	748.98	 	 	 	0.18	%	 	 	2,774.48	 	 	 	0.34	%
	4322 · Banquet Breakfast	 	 	0.00	 	 	 	0.0	%	 	 	0.00	 	 	 	0.0	%	 	 	832.00	 	 	 	0.2	%	 	 	832.00	 	 	 	0.1	%
	4323 · Banquet Lunch	 	 	784.00	 	 	 	0.48	%	 	 	320.00	 	 	 	0.15	%	 	 	3,656.21	 	 	 	0.86	%	 	 	4,760.21	 	 	 	0.59	%
	4324 · Banquet Dinner	 	 	1,512.00	 	 	 	0.92	%	 	 	1,185.00	 	 	 	0.54	%	 	 	3,497.82	 	 	 	0.82	%	 	 	6,194.82	 	 	 	0.76	%
	4325 · Banquet Liquor	 	 	0.00	 	 	 	0.0	%	 	 	90.00	 	 	 	0.04	%	 	 	816.50	 	 	 	0.19	%	 	 	906.50	 	 	 	0.11	%
	4326 · Banquet Wine Sales	 	 	1,264.00	 	 	 	0.77	%	 	 	507.00	 	 	 	0.23	%	 	 	1,080.40	 	 	 	0.25	%	 	 	2,851.40	 	 	 	0.35	%
	4327 · Banquet Reception	 	 	0.00	 	 	 	0.0	%	 	 	0.00	 	 	 	0.0	%	 	 	1,060.00	 	 	 	0.25	%	 	 	1,060.00	 	 	 	0.13	%
	4328 · Banquet Miscellaneous	 	 	0.00	 	 	 	0.0	%	 	 	0.00	 	 	 	0.0	%	 	 	1,355.00	 	 	 	0.32	%	 	 	1,355.00	 	 	 	0.17	%
	4329 · Banquet Beer Sales	 	 	18.00	 	 	 	0.01	%	 	 	67.00	 	 	 	0.03	%	 	 	18.00	 	 	 	0.0	%	 	 	103.00	 	 	 	0.01	%
	4330 · Banquet Equipment Rental	 	 	1,950.00	 	 	 	1.18	%	 	 	870.50	 	 	 	0.39	%	 	 	325.00	 	 	 	0.08	%	 	 	3,145.50	 	 	 	0.39	%
	4331 · Banquet Meeting Room	 	 	500.00	 	 	 	0.3	%	 	 	0.00	 	 	 	0.0	%	 	 	2,150.00	 	 	 	0.51	%	 	 	2,650.00	 	 	 	0.33	%
	Total 4320 · Banquet Sales	 	 	7,673.50	 	 	 	4.65	%	 	 	3,419.50	 	 	 	1.55	%	 	 	15,539.91	 	 	 	3.65	%	 	 	26,632.91	 	 	 	3.28	%
	4340 · Catering	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4341 · Catering Reception	 	 	0.00	 	 	 	0.0	%	 	 	0.00	 	 	 	0.0	%	 	 	480.00	 	 	 	0.11	%	 	 	480.00	 	 	 	0.06	%
	4343 · Catering Liquor Sales	 	 	153.00	 	 	 	0.09	%	 	 	0.00	 	 	 	0.0	%	 	 	265.07	 	 	 	0.06	%	 	 	418.07	 	 	 	0.05	%
	4344 · Catering Coffee Break	 	 	383.00	 	 	 	0.23	%	 	 	0.00	 	 	 	0.0	%	 	 	0.00	 	 	 	0.0	%	 	 	383.00	 	 	 	0.05	%
	4345 · Catering Miscellaneous	 	 	714.00	 	 	 	0.43	%	 	 	544.00	 	 	 	0.25	%	 	 	1,269.50	 	 	 	0.3	%	 	 	2,527.50	 	 	 	0.31	%
	4346 · Catering Dinner	 	 	1,796.00	 	 	 	1.09	%	 	 	0.00	 	 	 	0.0	%	 	 	2,320.82	 	 	 	0.55	%	 	 	4,116.82	 	 	 	0.51	%
	4347 · Catering Equipment Rental	 	 	260.00	 	 	 	0.16	%	 	 	0.00	 	 	 	0.0	%	 	 	300.00	 	 	 	0.07	%	 	 	560.00	 	 	 	0.07	%
	4348 · Catering Meeting Room	 	 	1,475.18	 	 	 	0.89	%	 	 	1,703.18	 	 	 	0.77	%	 	 	3,947.54	 	 	 	0.93	%	 	 	7,125.90	 	 	 	0.88	%
	4350 · Catering Beer	 	 	40.00	 	 	 	0.02	%	 	 	0.00	 	 	 	0.0	%	 	 	362.18	 	 	 	0.09	%	 	 	402.18	 	 	 	0.05	%
	4351 · Catering Wine	 	 	375.00	 	 	 	0.23	%	 	 	74.00	 	 	 	0.03	%	 	 	1,883.00	 	 	 	0.44	%	 	 	2,332.00	 	 	 	0.29	%
	4352 · Catering Breakfast	 	 	242.00	 	 	 	0.15	%	 	 	0.00	 	 	 	0.0	%	 	 	0.00	 	 	 	0.0	%	 	 	242.00	 	 	 	0.03	%
	4357 · Catering Pastry Wedding Cake	 	 	0.00	 	 	 	0.0	%	 	 	60.00	 	 	 	0.03	%	 	 	550.00	 	 	 	0.13	%	 	 	610.00	 	 	 	0.08	%
	Total 4340 · Catering	 	 	5,438.18	 	 	 	3.3	%	 	 	2,381.18	 	 	 	1.08	%	 	 	11,378.11	 	 	 	2.67	%	 	 	19,197.47	 	 	 	2.37	%
	4360 · Room Service	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4361 · Room Service Breakfast	 	 	6,065.00	 	 	 	3.68	%	 	 	6,754.81	 	 	 	3.06	%	 	 	11,069.00	 	 	 	2.6	%	 	 	23,888.81	 	 	 	2.94	%
	4362 · Room Service Lunch	 	 	1,524.00	 	 	 	0.92	%	 	 	1,219.00	 	 	 	0.55	%	 	 	4,256.75	 	 	 	1.0	%	 	 	6,999.75	 	 	 	0.86	%
	4363 · Room Service Dinner	 	 	5,239.00	 	 	 	3.17	%	 	 	8,768.00	 	 	 	3.97	%	 	 	9,378.25	 	 	 	2.2	%	 	 	23,385.25	 	 	 	2.88	%
	4364 · Room Service Liquor Sales	 	 	380.00	 	 	 	0.23	%	 	 	483.00	 	 	 	0.22	%	 	 	388.00	 	 	 	0.09	%	 	 	1,251.00	 	 	 	0.15	%
	4365 · Room Service Wine Sales	 	 	1,590.00	 	 	 	0.96	%	 	 	3,834.00	 	 	 	1.74	%	 	 	2,458.00	 	 	 	0.58	%	 	 	7,882.00	 	 	 	0.97	%
	4366 · Room Service Beer Sales	 	 	132.00	 	 	 	0.08	%	 	 	125.00	 	 	 	0.06	%	 	 	145.00	 	 	 	0.03	%	 	 	402.00	 	 	 	0.05	%
	4367 · Room Service Delivery	 	 	820.00	 	 	 	0.5	%	 	 	1,009.60	 	 	 	0.46	%	 	 	1,068.00	 	 	 	0.25	%	 	 	2,897.60	 	 	 	0.36	%
	Total 4360 · Room Service	 	 	15,750.00	 	 	 	9.54	%	 	 	22,193.41	 	 	 	10.05	%	 	 	28,763.00	 	 	 	6.76	%	 	 	66,706.41	 	 	 	8.22	%
	Total 4300 · Food & Beverage Revenue	 	 	165,053.29	 	 	 	100.0	%	 	 	220,894.24	 	 	 	100.0	%	 	 	425,632.48	 	 	 	100.0	%	 	 	811,580.01	 	 	 	100.0	%
	Total Income	 	 	165,053.29	 	 	 	100.0	%	 	 	220,894.24	 	 	 	100.0	%	 	 	425,632.48	 	 	 	100.0	%	 	 	811,580.01	 	 	 	100.0	%
	Revenue Summary:	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Food	 	 	110,640.91	 	 	 	67.03	%	 	 	153,288.62	 	 	 	69.39	%	 	 	304,255.22	 	 	 	71.48	%	 	 	568,184.75	 	 	 	70.01	%
	Beverage	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Liquor	 	 	11,279.76	 	 	 	6.83	%	 	 	14,770.34	 	 	 	6.69	%	 	 	27,382.38	 	 	 	6.43	%	 	 	53,432.48	 	 	 	6.58	%
	Beer	 	 	1,646.05	 	 	 	1.0	%	 	 	1,926.07	 	 	 	0.87	%	 	 	3,650.82	 	 	 	0.86	%	 	 	7,222.94	 	 	 	0.89	%
	Wine	 	 	36,587.39	 	 	 	22.17	%	 	 	47,731.53	 	 	 	21.61	%	 	 	80,447.02	 	 	 	18.9	%	 	 	164,765.94	 	 	 	20.3	%
	Total Beverage	 	 	49,513.20	 	 	 	30.0	%	 	 	64,427.94	 	 	 	29.17	%	 	 	111,480.22	 	 	 	26.19	%	 	 	225,421.36	 	 	 	27.78	%
	Other	 	 	4,899.18	 	 	 	2.97	%	 	 	3,177.68	 	 	 	1.44	%	 	 	9,897.04	 	 	 	2.33	%	 	 	17,973.90	 	 	 	2.21	%
	Total Food & Beverage Revenue	 	 	165,053.29	 	 	 	100.0	%	 	 	220,894.24	 	 	 	100.0	%	 	 	425,632.48	 	 	 	100.0	%	 	 	811,580.01	 	 	 	100.0	%
	Cost of Goods Sold	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	6300 · Cost of Food & Beverage	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	6310 · Restaurant Cost of Sales-Food	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	631001 · Meat	 	 	10,545.49	 	 	 	9.53	%	 	 	13,042.77	 	 	 	8.51	%	 	 	23,040.22	 	 	 	7.57	%	 	 	46,628.48	 	 	 	8.21	%
	631002 · Seafood	 	 	8,615.13	 	 	 	7.79	%	 	 	9,968.93	 	 	 	6.5	%	 	 	18,250.89	 	 	 	6.0	%	 	 	36,834.95	 	 	 	6.48	%
	631003 · Poultry	 	 	1,034.17	 	 	 	0.93	%	 	 	3,026.69	 	 	 	1.97	%	 	 	2,704.99	 	 	 	0.89	%	 	 	6,765.85	 	 	 	1.19	%
	631004 · Produce	 	 	10,253.14	 	 	 	9.27	%	 	 	12,444.23	 	 	 	8.12	%	 	 	19,615.92	 	 	 	6.45	%	 	 	42,313.29	 	 	 	7.45	%
	631005 · Dairy	 	 	4,921.59	 	 	 	4.45	%	 	 	5,593.00	 	 	 	3.65	%	 	 	7,773.37	 	 	 	2.55	%	 	 	18,287.96	 	 	 	3.22	%
	631006 · Bread	 	 	1,148.45	 	 	 	1.04	%	 	 	1,333.24	 	 	 	0.87	%	 	 	2,064.97	 	 	 	0.68	%	 	 	4,546.66	 	 	 	0.8	%
	631007 · Other Food	 	 	9,214.96	 	 	 	8.33	%	 	 	17,619.45	 	 	 	11.49	%	 	 	18,615.96	 	 	 	6.12	%	 	 	45,450.37	 	 	 	8.0	%
	631009 · Cost Of Goods Sold-EDR	 	 	0.00	 	 	 	0.0	%	 	 	0.00	 	 	 	0.0	%	 	 	0.00	 	 	 	0.0	%	 	 	0.00	 	 	 	0.0	%
	63100P · Pastry food supplies	 	 	-1,099.66	 	 	 	-0.99	%	 	 	-1,005.75	 	 	 	-0.66	%	 	 	644.96	 	 	 	0.21	%	 	 	-1,460.45	 	 	 	-0.26	%
	Total 6310 · Restaurant Cost of Sales-Food	 	 	44,633.27	 	 	 	40.34	%	 	 	62,022.56	 	 	 	40.46	%	 	 	92,711.28	 	 	 	30.47	%	 	 	199,367.11	 	 	 	35.09	%
	6311 · Cost of Goods - Liquor	 	 	2,725.65	 	 	 	24.16	%	 	 	2,342.30	 	 	 	15.86	%	 	 	4,940.11	 	 	 	18.04	%	 	 	10,008.06	 	 	 	18.73	%
	6312 · Cost of Goods-Wine	 	 	16,409.10	 	 	 	44.85	%	 	 	13,383.17	 	 	 	28.04	%	 	 	24,900.82	 	 	 	30.95	%	 	 	54,693.09	 	 	 	33.19	%
	6313 · Cost of Goods-Beer	 	 	431.24	 	 	 	26.2	%	 	 	236.63	 	 	 	12.29	%	 	 	885.78	 	 	 	24.26	%	 	 	1,553.65	 	 	 	21.51	%
	 	 	 	19,565.99	 	 	 	39.52	%	 	 	15,962.10	 	 	 	24.78	%	 	 	30,726.71	 	 	 	27.56	%	 	 	66,254.80	 	 	 	29.39	%
	6554 · Cost of Goods B&C	 	 	0.00	 	 	 	0.0	%	 	 	606.51	 	 	 	0.28	%	 	 	2,808.67	 	 	 	0.66	%	 	 	3,415.18	 	 	 	0.42	%
	Total 6300 · Cost of Food & Beverage	 	 	64,199.26	 	 	 	38.9	%	 	 	78,591.17	 	 	 	35.58	%	 	 	126,246.66	 	 	 	29.66	%	 	 	269,037.09	 	 	 	33.15	%
	Total COGS	 	 	64,199.26	 	 	 	38.9	%	 	 	78,591.17	 	 	 	35.58	%	 	 	126,246.66	 	 	 	29.66	%	 	 	269,037.09	 	 	 	33.15	%
	Gross Profit	 	 	100,854.03	 	 	 	61.1	%	 	 	142,303.07	 	 	 	64.42	%	 	 	299,385.82	 	 	 	70.34	%	 	 	542,542.92	 	 	 	66.85	%
	Expense	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5000 · Payroll & Benefits	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5300000 · F&B Salaries & Wages	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5363000 · Restaurant Salary & Wages	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5363150 · Restaurant Supervisor	 	 	0.00	 	 	 	0.0	%	 	 	0.00	 	 	 	0.0	%	 	 	935.00	 	 	 	0.22	%	 	 	935.00	 	 	 	0.12	%
	5363160 · Restaurant Chef	 	 	15,714.80	 	 	 	9.52	%	 	 	8,984.22	 	 	 	4.07	%	 	 	20,129.63	 	 	 	4.73	%	 	 	44,828.65	 	 	 	5.52	%
	5363170 · Manager, Restauant	 	 	17,884.86	 	 	 	10.84	%	 	 	15,865.40	 	 	 	7.18	%	 	 	20,750.20	 	 	 	4.88	%	 	 	54,500.46	 	 	 	6.72	%
	5363300 · Restaurant Server	 	 	4,199.93	 	 	 	2.55	%	 	 	4,285.93	 	 	 	1.94	%	 	 	5,776.84	 	 	 	1.36	%	 	 	14,262.70	 	 	 	1.76	%
	5363305 · Restaurant Expeditor	 	 	4,050.48	 	 	 	2.45	%	 	 	5,210.55	 	 	 	2.36	%	 	 	6,895.65	 	 	 	1.62	%	 	 	16,156.68	 	 	 	1.99	%
	5363310 · Restaurant Busser	 	 	3,957.16	 	 	 	2.4	%	 	 	3,999.66	 	 	 	1.81	%	 	 	7,002.98	 	 	 	1.65	%	 	 	14,959.80	 	 	 	1.84	%
	5363320 · Restaurant Bartendar	 	 	3,266.32	 	 	 	1.98	%	 	 	2,843.15	 	 	 	1.29	%	 	 	4,465.71	 	 	 	1.05	%	 	 	10,575.18	 	 	 	1.3	%
	5363330 · Restaurant Cashier/Hostess	 	 	4,643.00	 	 	 	2.81	%	 	 	3,840.00	 	 	 	1.74	%	 	 	6,984.00	 	 	 	1.64	%	 	 	15,467.00	 	 	 	1.91	%
	5363400 · Warewasher/Dishwasher	 	 	8,517.51	 	 	 	5.16	%	 	 	8,485.38	 	 	 	3.84	%	 	 	12,211.64	 	 	 	2.87	%	 	 	29,214.53	 	 	 	3.6	%
	5363420 · Cook	 	 	25,876.17	 	 	 	15.68	%	 	 	29,239.80	 	 	 	13.24	%	 	 	38,070.19	 	 	 	8.94	%	 	 	93,186.16	 	 	 	11.48	%
	5363430 · Pastry Chef	 	 	4,878.67	 	 	 	2.96	%	 	 	5,780.35	 	 	 	2.62	%	 	 	7,158.13	 	 	 	1.68	%	 	 	17,817.15	 	 	 	2.2	%
	5363450 · EDR Chef	 	 	0.00	 	 	 	0.0	%	 	 	0.00	 	 	 	0.0	%	 	 	0.00	 	 	 	0.0	%	 	 	0.00	 	 	 	0.0	%
	5363610 · Valet	 	 	6,684.03	 	 	 	4.05	%	 	 	8,818.22	 	 	 	3.99	%	 	 	9,335.61	 	 	 	2.19	%	 	 	24,837.86	 	 	 	3.06	%
	Total 5363000 · Restaurant Salary & Wages	 	 	99,672.93	 	 	 	60.39	%	 	 	97,352.66	 	 	 	44.07	%	 	 	139,715.58	 	 	 	32.83	%	 	 	336,741.17	 	 	 	41.49	%
	5363050 · Restaurant Taxes & Benefits	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5351 · F&B Payroll Taxes	 	 	19,096.77	 	 	 	11.57	%	 	 	15,532.48	 	 	 	7.03	%	 	 	22,367.84	 	 	 	5.26	%	 	 	56,997.09	 	 	 	7.02	%
	5352 · F&B Workers' Comp	 	 	2,106.00	 	 	 	1.28	%	 	 	2,106.00	 	 	 	0.95	%	 	 	9,206.39	 	 	 	2.16	%	 	 	13,418.39	 	 	 	1.65	%
	5353 · F&B Employ Benefits	 	 	7,200.99	 	 	 	4.36	%	 	 	13,379.16	 	 	 	6.06	%	 	 	10,307.82	 	 	 	2.42	%	 	 	30,887.97	 	 	 	3.81	%
	5355 · F&B PTO	 	 	2,435.87	 	 	 	1.48	%	 	 	3,102.92	 	 	 	1.41	%	 	 	4,483.13	 	 	 	1.05	%	 	 	10,021.92	 	 	 	1.24	%
	5356 · F&B Employ Meals	 	 	3,217.31	 	 	 	1.95	%	 	 	3,402.62	 	 	 	1.54	%	 	 	3,773.34	 	 	 	0.89	%	 	 	10,393.27	 	 	 	1.28	%
	Total 5363050 · Restaurant Taxes & Benefits	 	 	34,056.94	 	 	 	20.63	%	 	 	37,523.18	 	 	 	16.99	%	 	 	50,138.52	 	 	 	11.78	%	 	 	121,718.64	 	 	 	15.0	%
	5368000 · Banquets Salary & Wages	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5368150 · Banquet Captain/Supervisor	 	 	674.50	 	 	 	0.41	%	 	 	615.50	 	 	 	0.28	%	 	 	1,277.00	 	 	 	0.3	%	 	 	2,567.00	 	 	 	0.32	%
	5368170 · Manager, Banquet	 	 	4,258.16	 	 	 	2.58	%	 	 	3,846.16	 	 	 	1.74	%	 	 	4,258.24	 	 	 	1.0	%	 	 	12,362.56	 	 	 	1.52	%
	5368300 · Banquet Server	 	 	278.00	 	 	 	0.17	%	 	 	244.50	 	 	 	0.11	%	 	 	1,249.60	 	 	 	0.29	%	 	 	1,772.10	 	 	 	0.22	%
	5368560 · Banquet House Attendant	 	 	-209.08	 	 	 	-0.13	%	 	 	0.00	 	 	 	0.0	%	 	 	635.62	 	 	 	0.15	%	 	 	426.54	 	 	 	0.05	%
	Total 5368000 · Banquets Salary & Wages	 	 	5,001.58	 	 	 	3.03	%	 	 	4,706.16	 	 	 	2.13	%	 	 	7,420.46	 	 	 	1.74	%	 	 	17,128.20	 	 	 	2.11	%
	5368050 · Banquet Taxes & Benefits	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	53681 · Banquet PR Taxes	 	 	1,603.88	 	 	 	0.97	%	 	 	624.87	 	 	 	0.28	%	 	 	1,281.04	 	 	 	0.3	%	 	 	3,509.79	 	 	 	0.43	%
	53682 · Banquet Workers' Comp	 	 	562.00	 	 	 	0.34	%	 	 	562.00	 	 	 	0.25	%	 	 	2,270.39	 	 	 	0.53	%	 	 	3,394.39	 	 	 	0.42	%
	53683 · Banquet Employ Benefits	 	 	513.08	 	 	 	0.31	%	 	 	497.80	 	 	 	0.23	%	 	 	304.07	 	 	 	0.07	%	 	 	1,314.95	 	 	 	0.16	%
	53685 · Banquet Employee PTO	 	 	212.88	 	 	 	0.13	%	 	 	283.19	 	 	 	0.13	%	 	 	411.68	 	 	 	0.1	%	 	 	907.75	 	 	 	0.11	%
	53686 · Banquet Employ Meals	 	 	857.95	 	 	 	0.52	%	 	 	907.36	 	 	 	0.41	%	 	 	1,006.22	 	 	 	0.24	%	 	 	2,771.53	 	 	 	0.34	%
	Total 5368050 · Banquet Taxes & Benefits	 	 	3,749.79	 	 	 	2.27	%	 	 	2,875.22	 	 	 	1.3	%	 	 	5,273.40	 	 	 	1.24	%	 	 	11,898.41	 	 	 	1.47	%
	Total 5300000 · F&B Salaries & Wages	 	 	142,481.24	 	 	 	86.32	%	 	 	142,457.22	 	 	 	64.49	%	 	 	202,547.96	 	 	 	47.59	%	 	 	487,486.42	 	 	 	60.07	%
	Total 5000 · Payroll & Benefits	 	 	142,481.24	 	 	 	86.32	%	 	 	142,457.22	 	 	 	64.49	%	 	 	202,547.96	 	 	 	47.59	%	 	 	487,486.42	 	 	 	60.07	%
	8300 · Food & Beverage	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	8312 · Guest Satisfaction	 	 	881.33	 	 	 	0.53	%	 	 	674.00	 	 	 	0.31	%	 	 	1,549.95	 	 	 	0.36	%	 	 	3,105.28	 	 	 	0.38	%
	8313 · Operating Supplies	 	 	407.04	 	 	 	0.25	%	 	 	875.40	 	 	 	0.4	%	 	 	1,799.89	 	 	 	0.42	%	 	 	3,082.33	 	 	 	0.38	%
	8326 · Equipment Repair	 	 	0.00	 	 	 	0.0	%	 	 	0.00	 	 	 	0.0	%	 	 	131.01	 	 	 	0.03	%	 	 	131.01	 	 	 	0.02	%
	8327 · Equipment Rental	 	 	675.73	 	 	 	0.41	%	 	 	575.44	 	 	 	0.26	%	 	 	1,157.54	 	 	 	0.27	%	 	 	2,408.71	 	 	 	0.3	%
	8330 · Outside Laundry	 	 	0.00	 	 	 	0.0	%	 	 	355.77	 	 	 	0.16	%	 	 	0.00	 	 	 	0.0	%	 	 	355.77	 	 	 	0.04	%
	8335 · Uniforms	 	 	1,142.90	 	 	 	0.69	%	 	 	1,346.71	 	 	 	0.61	%	 	 	3,161.02	 	 	 	0.74	%	 	 	5,650.63	 	 	 	0.7	%
	8343 · Linens	 	 	6,343.98	 	 	 	3.84	%	 	 	6,785.38	 	 	 	3.07	%	 	 	10,336.79	 	 	 	2.43	%	 	 	23,466.15	 	 	 	2.89	%
	8351 · Cleaning Supplies	 	 	474.39	 	 	 	0.29	%	 	 	1,701.84	 	 	 	0.77	%	 	 	1,892.80	 	 	 	0.45	%	 	 	4,069.03	 	 	 	0.5	%
	8359 · Small Equipment	 	 	671.56	 	 	 	0.41	%	 	 	0.00	 	 	 	0.0	%	 	 	410.05	 	 	 	0.1	%	 	 	1,081.61	 	 	 	0.13	%
	8361 · Computer Maint. & Support	 	 	1,762.88	 	 	 	1.07	%	 	 	3,781.77	 	 	 	1.71	%	 	 	2,967.26	 	 	 	0.7	%	 	 	8,511.91	 	 	 	1.05	%
	8362 · Glassware/Utensils/Silverware	 	 	418.88	 	 	 	0.25	%	 	 	791.50	 	 	 	0.36	%	 	 	3,769.96	 	 	 	0.89	%	 	 	4,980.34	 	 	 	0.61	%
	8363 · Paper Supplies	 	 	1,362.97	 	 	 	0.83	%	 	 	2,835.32	 	 	 	1.28	%	 	 	3,168.52	 	 	 	0.74	%	 	 	7,366.81	 	 	 	0.91	%
	8364 · Decorations	 	 	1,561.75	 	 	 	0.95	%	 	 	1,388.20	 	 	 	0.63	%	 	 	1,561.70	 	 	 	0.37	%	 	 	4,511.65	 	 	 	0.56	%
	8372 · Firewood	 	 	398.00	 	 	 	0.24	%	 	 	156.00	 	 	 	0.07	%	 	 	140.00	 	 	 	0.03	%	 	 	694.00	 	 	 	0.09	%
	8375 · Cable TV	 	 	183.00	 	 	 	0.11	%	 	 	195.96	 	 	 	0.09	%	 	 	185.98	 	 	 	0.04	%	 	 	564.94	 	 	 	0.07	%
	8377 · Menus	 	 	550.65	 	 	 	0.33	%	 	 	0.00	 	 	 	0.0	%	 	 	0.00	 	 	 	0.0	%	 	 	550.65	 	 	 	0.07	%
	8378 · Express Mail	 	 	18.48	 	 	 	0.01	%	 	 	0.00	 	 	 	0.0	%	 	 	0.00	 	 	 	0.0	%	 	 	18.48	 	 	 	0.0	%
	8381 · Dues & Subscriptions	 	 	291.86	 	 	 	0.18	%	 	 	38.61	 	 	 	0.02	%	 	 	274.77	 	 	 	0.07	%	 	 	605.24	 	 	 	0.08	%
	8384 · Printing	 	 	0.00	 	 	 	0.0	%	 	 	546.57	 	 	 	0.25	%	 	 	0.00	 	 	 	0.0	%	 	 	546.57	 	 	 	0.07	%
	8385 · Telephone Cell & Radio	 	 	300.00	 	 	 	0.18	%	 	 	300.00	 	 	 	0.14	%	 	 	350.00	 	 	 	0.08	%	 	 	950.00	 	 	 	0.12	%
	8390 · Office Supplies	 	 	79.21	 	 	 	0.05	%	 	 	464.41	 	 	 	0.21	%	 	 	410.45	 	 	 	0.1	%	 	 	954.07	 	 	 	0.12	%
	8393 · Licenses & Permits	 	 	0.00	 	 	 	0.0	%	 	 	227.53	 	 	 	0.1	%	 	 	0.00	 	 	 	0.0	%	 	 	227.53	 	 	 	0.03	%
	8394P · Van expense-P	 	 	623.03	 	 	 	0.38	%	 	 	653.02	 	 	 	0.3	%	 	 	623.03	 	 	 	0.15	%	 	 	1,899.08	 	 	 	0.23	%
	8395 · Equipment	 	 	0.00	 	 	 	0.0	%	 	 	0.00	 	 	 	0.0	%	 	 	440.31	 	 	 	0.1	%	 	 	440.31	 	 	 	0.05	%
	8396 · Business Travel	 	 	191.50	 	 	 	0.12	%	 	 	0.00	 	 	 	0.0	%	 	 	0.00	 	 	 	0.0	%	 	 	191.50	 	 	 	0.02	%
	Total 8300 · Food & Beverage	 	 	18,339.14	 	 	 	11.11	%	 	 	23,693.43	 	 	 	10.73	%	 	 	34,331.03	 	 	 	8.07	%	 	 	76,363.60	 	 	 	9.41	%
	Total Expense	 	 	160,820.38	 	 	 	97.44	%	 	 	166,150.65	 	 	 	75.22	%	 	 	236,878.99	 	 	 	55.65	%	 	 	563,850.02	 	 	 	69.48	%
	Net Ordinary Income	 	 	-59,966.35	 	 	 	-36.33	%	 	 	-23,847.58	 	 	 	-10.8	%	 	 	62,506.83	 	 	 	14.69	%	 	 	-21,307.10	 	 	 	-2.63	%
	Net Income	 	 	-59,966.35	 	 	 	-36.33	%	 	 	-23,847.58	 	 	 	-10.8	%	 	 	62,506.83	 	 	 	14.69	%	 	 	-21,307.10	 	 	 	-2.63	%

 

 

 

	 	Page 8 of 23	109.1. Ex 18(a)- 1st Part - L'Auberge_Resort March 13 Issue F&B

 

 

 

    	 

    	 

     

  

L'Auberge de Sedona Resort

Spa Department

Actual vs. Budget
and Prior Year

March 2013

 

	 	 	 	 
	 	 	Current
    Month	 
	 	 	Actual	 	 	%
                                                                                                                                                                                                                                                                       to
                                                                                                                                                                                                                                                                       
Revenue	 	 	Budget	 	 	%
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              to
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
Revenue	 	 	Variance	 	 	%
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              to
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
Revenue	 	 	Prior
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Year	 	 	%
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              to
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
Revenue	 	 	Variance	 	 	%
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              to
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
Revenue	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Revenue	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4900
                                                 · Spa Revenue	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4905
                                                            · Facial & Waxing	 	 	13,962	 	 	 	14.6	%	 	 	10,349	 	 	 	11.2	%	 	 	3,613	 	 	 	113.7	%	 	 	9,582	 	 	 	11.2	%	 	 	4,380	 	 	 	43.0	%
	4915
                                                 · Manicure & Pedicure	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	4920
                                                 · Massage & Body	 	 	74,853	 	 	 	78.2	%	 	 	79,103	 	 	 	85.5	%	 	 	(4,251	)	 	 	-133.8	%	 	 	73,244	 	 	 	85.7	%	 	 	1,609	 	 	 	15.8	%
	4921
                                                 · Spa Massage & Body In Room	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	(150	)	 	 	-0.2	%	 	 	150	 	 	 	1.5	%
	4925
                                                 · Salon Services	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	4926
                                                 · Spa Miscellaneous	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	4930
                                                 · Packages	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	4940
                                                                      · Retail Sales	 	 	6,862	 	 	 	7.2	%	 	 	3,047	 	 	 	3.3	%	 	 	3,815	 	 	 	120.1	%	 	 	2,822	 	 	 	3.3	%	 	 	4,040	 	 	 	39.7	%
	Total
                                                                      4900 · Spa Revenue	 	 	95,676	 	 	 	100.0	%	 	 	92,499	 	 	 	100.0	%	 	 	3,177	 	 	 	100.0	%	 	 	85,498	 	 	 	100.0	%	 	 	10,178	 	 	 	100.0	%
	Total
                                                 Revenue	 	 	95,676	 	 	 	100.0	%	 	 	92,499	 	 	 	100.0	%	 	 	3,177	 	 	 	100.0	%	 	 	85,498	 	 	 	100.0	%	 	 	10,178	 	 	 	100.0	%
	Cost
                                                 of Goods Sold	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	6900
                                                 · COGS Spa	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	6905
                                                 · Facial & Waxing COGS	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	6920
                                                 · Massage & Body COGS	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	6940
                                                                      · Retail Sales COGS	 	 	2,595	 	 	 	2.7	%	 	 	1,524	 	 	 	1.6	%	 	 	1,071	 	 	 	28.1	%	 	 	927	 	 	 	1.1	%	 	 	1,668	 	 	 	41.3	%
	Total
                                                                      6900 · COGS Spa	 	 	2,595	 	 	 	2.7	%	 	 	1,524	 	 	 	1.6	%	 	 	1,071	 	 	 	33.7	%	 	 	927	 	 	 	1.1	%	 	 	1,668	 	 	 	16.4	%
	Total
                                                                      COGS	 	 	2,595	 	 	 	2.7	%	 	 	1,524	 	 	 	1.6	%	 	 	1,071	 	 	 	33.7	%	 	 	927	 	 	 	1.1	%	 	 	1,668	 	 	 	16.4	%
	Gross
                                                 Profit	 	 	93,081	 	 	 	97.3	%	 	 	90,976	 	 	 	98.4	%	 	 	2,106	 	 	 	66.3	%	 	 	84,571	 	 	 	98.9	%	 	 	8,510	 	 	 	83.6	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Expense	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4950
                                                 · Spa Commissions	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4951
                                                 · Treatment Commissions	 	 	14,208	 	 	 	14.8	%	 	 	14,462	 	 	 	15.6	%	 	 	(255	)	 	 	-8.0	%	 	 	13,179	 	 	 	15.4	%	 	 	1,028	 	 	 	10.1	%
	4952
                                                 · Retail Commissions	 	 	465	 	 	 	0.5	%	 	 	129	 	 	 	0.1	%	 	 	336	 	 	 	10.6	%	 	 	125	 	 	 	0.1	%	 	 	340	 	 	 	3.3	%
	4953
                                                 · Front Desk 1% Treatment	 	 	1,229	 	 	 	1.3	%	 	 	1,106	 	 	 	1.2	%	 	 	123	 	 	 	3.9	%	 	 	1,074	 	 	 	1.3	%	 	 	155	 	 	 	1.5	%
	4954
                                                 · Treatment Commissions-In Room	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	4955
                                                 · In Room 5% Treatment Commission	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	4950
                                                                      · Spa Commissions - Other	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	Total
                                                 4950 · Spa Commissions	 	 	15,902	 	 	 	16.6	%	 	 	15,697	 	 	 	17.0	%	 	 	81	 	 	 	2.6	%	 	 	14,378	 	 	 	16.8	%	 	 	1,368	 	 	 	13.4	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5000
                                                 · Payroll & Benefits	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5990000
                                                 · Spa Salary & Wages	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5906
                                                 · Yoga Classes	 	 	2,160	 	 	 	2.3	%	 	 	2,081	 	 	 	2.3	%	 	 	78	 	 	 	2.5	%	 	 	2,021	 	 	 	2.4	%	 	 	139	 	 	 	1.4	%
	5990130
                                                 · Spa Therapist	 	 	6,071	 	 	 	6.3	%	 	 	6,069	 	 	 	6.6	%	 	 	2	 	 	 	0.1	%	 	 	5,893	 	 	 	6.9	%	 	 	179	 	 	 	1.8	%
	5990140
                                                 · Lead Spa Therapist	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	5990145
                                                 · Spa Trainer	 	 	68	 	 	 	0.1	%	 	 	-	 	 	 	0.0	%	 	 	68	 	 	 	2.1	%	 	 	44	 	 	 	0.1	%	 	 	24	 	 	 	0.2	%
	5990150
                                                 · Spa Supervisor	 	 	2,207	 	 	 	2.3	%	 	 	-	 	 	 	0.0	%	 	 	2,207	 	 	 	69.5	%	 	 	-	 	 	 	0.0	%	 	 	2,207	 	 	 	21.7	%
	5990170
                                                 · Spa Manager	 	 	7,643	 	 	 	8.0	%	 	 	6,842	 	 	 	7.4	%	 	 	801	 	 	 	25.2	%	 	 	6,643	 	 	 	7.8	%	 	 	1,000	 	 	 	9.8	%
	5990330
                                                 · Spa Front Desk	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	5990600
                                                 · Spa Guest Service Agent	 	 	3,603	 	 	 	3.8	%	 	 	6,951	 	 	 	7.5	%	 	 	(3,348	)	 	 	-105.4	%	 	 	6,749	 	 	 	7.9	%	 	 	(3,146	)	 	 	-30.9	%
	5990601
                                                 · Spa Laundry Attendant	 	 	3,924	 	 	 	4.1	%	 	 	-	 	 	 	0.0	%	 	 	3,924	 	 	 	123.5	%	 	 	4,088	 	 	 	4.8	%	 	 	(163	)	 	 	-1.6	%
	5990602
                                                 · Spa Shared Services	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	5990603
                                                                      · Spa Other Pay	 	 	-	 	 	 	0.0	%	 	 	4,256	 	 	 	4.6	%	 	 	(4,256	)	 	 	-134.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	Total
                                                 5990000 · Spa Salary & Wages	 	 	25,677	 	 	 	26.8	%	 	 	26,200	 	 	 	28.3	%	 	 	(192	)	 	 	-6.0	%	 	 	25,437	 	 	 	29.8	%	 	 	404	 	 	 	4.0	%
	5999050
                                                 · Spa Taxes & Benefits	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5951
                                                 · Spa Payroll Taxes	 	 	6,274	 	 	 	6.6	%	 	 	6,684	 	 	 	7.2	%	 	 	(410	)	 	 	-12.9	%	 	 	6,489	 	 	 	7.6	%	 	 	(215	)	 	 	-2.1	%
	5952
                                                 · Spa Workers' Comp	 	 	3,519	 	 	 	3.7	%	 	 	774	 	 	 	0.8	%	 	 	2,745	 	 	 	86.4	%	 	 	751	 	 	 	0.9	%	 	 	2,768	 	 	 	27.2	%
	5953
                                                 · Spa Employee Benefits	 	 	1,243	 	 	 	1.3	%	 	 	1,665	 	 	 	1.8	%	 	 	(422	)	 	 	-13.3	%	 	 	1,616	 	 	 	1.9	%	 	 	(373	)	 	 	-3.7	%
	5955
                                                 · Spa PTO	 	 	481	 	 	 	0.5	%	 	 	607	 	 	 	0.7	%	 	 	(126	)	 	 	-4.0	%	 	 	590	 	 	 	0.7	%	 	 	(108	)	 	 	-1.1	%
	5956
                                                                      · Spa Employ Meals	 	 	1,384	 	 	 	1.4	%	 	 	1,261	 	 	 	1.4	%	 	 	122	 	 	 	3.9	%	 	 	1,224	 	 	 	1.4	%	 	 	159	 	 	 	1.6	%
	Total
                                                                      5999050 · Spa Taxes & Benefits	 	 	12,900	 	 	 	13.5	%	 	 	10,990	 	 	 	11.9	%	 	 	1,909	 	 	 	60.1	%	 	 	10,670	 	 	 	12.5	%	 	 	2,230	 	 	 	21.9	%
	Total
                                                 5000 · Payroll & Benefits	 	 	38,577	 	 	 	40.3	%	 	 	37,190	 	 	 	40.2	%	 	 	1,718	 	 	 	54.1	%	 	 	36,107	 	 	 	42.2	%	 	 	2,633	 	 	 	25.9	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	8900
                                                 · Spa Direct Expense	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	8901
                                                 · Advertising & Promotion	 	 	162	 	 	 	0.2	%	 	 	34	 	 	 	0.0	%	 	 	128	 	 	 	4.0	%	 	 	33	 	 	 	0.0	%	 	 	129	 	 	 	1.3	%
	8907
                                                 · Bank Fees	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8912
                                                 · Guest Relations	 	 	-	 	 	 	0.0	%	 	 	82	 	 	 	0.1	%	 	 	(82	)	 	 	-2.6	%	 	 	80	 	 	 	0.1	%	 	 	(80	)	 	 	-0.8	%
	8913
                                                 · Spa Payroll Processing Fees	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8914
                                                 · Guest Amenities	 	 	1,336	 	 	 	1.4	%	 	 	519	 	 	 	0.6	%	 	 	817	 	 	 	25.7	%	 	 	504	 	 	 	0.6	%	 	 	833	 	 	 	8.2	%
	8915
                                                 · Operating Supply	 	 	75	 	 	 	0.1	%	 	 	-	 	 	 	0.0	%	 	 	75	 	 	 	2.3	%	 	 	-	 	 	 	0.0	%	 	 	75	 	 	 	0.7	%
	8917
                                                 · Business Meals & Entertainment	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8922
                                                 · Cleaning & Janitorial	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8925
                                                 · Contract Labor	 	 	94	 	 	 	0.1	%	 	 	-	 	 	 	0.0	%	 	 	94	 	 	 	2.9	%	 	 	-	 	 	 	0.0	%	 	 	94	 	 	 	0.9	%
	8928
                                                 · Credit Card Fees	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8934
                                                 · Dues & Subscriptions	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8936
                                                 · Other Miscellaneous	 	 	-	 	 	 	0.0	%	 	 	43	 	 	 	0.0	%	 	 	(43	)	 	 	-1.3	%	 	 	42	 	 	 	0.0	%	 	 	(42	)	 	 	-0.4	%
	8939
                                                 · Employee Relations & Training	 	 	290	 	 	 	0.3	%	 	 	389	 	 	 	0.4	%	 	 	(99	)	 	 	-3.1	%	 	 	378	 	 	 	0.4	%	 	 	(88	)	 	 	-0.9	%
	8949
                                                 · Insurance	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8952
                                                 · Computer Main. & Support	 	 	289	 	 	 	0.3	%	 	 	66	 	 	 	0.1	%	 	 	223	 	 	 	7.0	%	 	 	64	 	 	 	0.1	%	 	 	225	 	 	 	2.2	%
	8955
                                                 · Laundry & Dry Cleaning	 	 	-	 	 	 	0.0	%	 	 	174	 	 	 	0.2	%	 	 	(174	)	 	 	-5.5	%	 	 	169	 	 	 	0.2	%	 	 	(169	)	 	 	-1.7	%
	8961
                                                 · Licenses & Permits	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8963
                                                 · AP & AG - Promotions	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8964
                                                 · Linen Supply	 	 	2,313	 	 	 	2.4	%	 	 	3,353	 	 	 	3.6	%	 	 	(1,041	)	 	 	-32.8	%	 	 	3,256	 	 	 	3.8	%	 	 	(943	)	 	 	-9.3	%
	8967
                                                 · Office Supplies	 	 	187	 	 	 	0.2	%	 	 	-	 	 	 	0.0	%	 	 	187	 	 	 	5.9	%	 	 	-	 	 	 	0.0	%	 	 	187	 	 	 	1.8	%
	8968
                                                 · Spa Supplies	 	 	1,500	 	 	 	1.6	%	 	 	883	 	 	 	1.0	%	 	 	617	 	 	 	19.4	%	 	 	857	 	 	 	1.0	%	 	 	643	 	 	 	6.3	%
	8970
                                                 · Treatment Supplies	 	 	1,438	 	 	 	1.5	%	 	 	575	 	 	 	0.6	%	 	 	863	 	 	 	27.2	%	 	 	558	 	 	 	0.7	%	 	 	880	 	 	 	8.6	%
	8976
                                                 · Postage & Delivery	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8978
                                                 · Express Mail	 	 	-	 	 	 	0.0	%	 	 	16	 	 	 	0.0	%	 	 	(16	)	 	 	-0.5	%	 	 	15	 	 	 	0.0	%	 	 	(15	)	 	 	-0.2	%
	8979
                                                 · Printing	 	 	1,483	 	 	 	1.6	%	 	 	-	 	 	 	0.0	%	 	 	1,483	 	 	 	46.7	%	 	 	-	 	 	 	0.0	%	 	 	1,483	 	 	 	14.6	%
	8985
                                                 · Repairs & Maintenance	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8988
                                                 · Telephone Cell & Radio	 	 	50	 	 	 	0.1	%	 	 	52	 	 	 	0.1	%	 	 	(2	)	 	 	0.0	%	 	 	50	 	 	 	0.1	%	 	 	-	 	 	 	0.0	%
	8991
                                                 · Uniforms	 	 	79	 	 	 	0.1	%	 	 	-	 	 	 	0.0	%	 	 	79	 	 	 	2.5	%	 	 	-	 	 	 	0.0	%	 	 	79	 	 	 	0.8	%
	8996
                                                 · Rent Expense	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8997
                                                 · Business Travel	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8998
                                                 · Business Meals	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8999
                                                                      · Management Fee	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	Total
                                                                      8900 · Spa Direct Expense	 	 	9,295	 	 	 	9.7	%	 	 	6,185	 	 	 	6.7	%	 	 	3,110	 	 	 	97.9	%	 	 	6,005	 	 	 	7.0	%	 	 	3,290	 	 	 	32.3	%
	Total
                                                                      Expense	 	 	63,774	 	 	 	66.7	%	 	 	59,073	 	 	 	63.9	%	 	 	4,701	 	 	 	148.0	%	 	 	56,490	 	 	 	66.1	%	 	 	7,284	 	 	 	71.6	%
	Net
                                                                        Income	 	 	29,307	 	 	 	30.6	%	 	 	31,903	 	 	 	34.5	%	 	 	(2,596	)	 	 	-81.7	%	 	 	28,081	 	 	 	32.8	%	 	 	1,227	 	 	 	12.1	%

 

	 	 	 	 	 	 	Budget	 
	 	 	 	Year
                                                                                                                                                                                        to
                                                                                                                                                                                        Date	 	 	Full
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Year	 
	 	 	 	Actual	 	 	%
                                                                                                                                                                                                                                                                                                                                                                                                                                        to
                                                                                                                                                                                                                                                                                                                                                                                                                                        
Revenue	 	 	Budget	 	 	%
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              to
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
Revenue	 	 	Variance	 	 	%
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              to
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
Revenue	 	 	Prior
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Year	 	 	%
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              to
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
Revenue	 	 	Variance	 	 	%
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              to
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
Revenue	 	 	Amount	 	 	%
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              to
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
Revenue	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	Revenue	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	4900
                                                 · Spa Revenue	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	4905
                                                            · Facial & Waxing	 	 	34,090	 	 	 	14.8	%	 	 	25,307	 	 	 	11.6	%	 	 	8,783	 	 	 	74.7	%	 	 	21,400	 	 	 	10.7	%	 	 	12,690	 	 	 	41.5	%	 	 	112,457	 	 	 	12.2	%
	 	4915
                                                 · Manicure & Pedicure	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	557	 	 	 	0.3	%	 	 	(557	)	 	 	-1.8	%	 	 	23,111	 	 	 	2.5	%
	 	4920
                                                 · Massage & Body	 	 	178,475	 	 	 	77.4	%	 	 	182,196	 	 	 	83.3	%	 	 	(3,721	)	 	 	-31.6	%	 	 	170,699	 	 	 	85.4	%	 	 	7,776	 	 	 	25.4	%	 	 	742,043	 	 	 	80.4	%
	 	4921
                                                 · Spa Massage & Body In Room	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	(150	)	 	 	-0.1	%	 	 	150	 	 	 	0.5	%	 	 	(150	)	 	 	0.0	%
	 	4925
                                                 · Salon Services	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	 	4926
                                                 · Spa Miscellaneous	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	 	4930
                                                 · Packages	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	 	4940
                                                                      · Retail Sales	 	 	18,025	 	 	 	7.8	%	 	 	11,328	 	 	 	5.2	%	 	 	6,697	 	 	 	57.0	%	 	 	7,490	 	 	 	3.7	%	 	 	10,535	 	 	 	34.4	%	 	 	45,558	 	 	 	4.9	%
	 	Total
                                                                      4900 · Spa Revenue	 	 	230,590	 	 	 	100.0	%	 	 	218,830	 	 	 	100.0	%	 	 	11,760	 	 	 	100.0	%	 	 	199,996	 	 	 	100.0	%	 	 	30,594	 	 	 	100.0	%	 	 	923,018	 	 	 	100.0	%
	 	Total
                                                 Revenue	 	 	230,590	 	 	 	100.0	%	 	 	218,830	 	 	 	100.0	%	 	 	11,760	 	 	 	100.0	%	 	 	199,996	 	 	 	100.0	%	 	 	30,594	 	 	 	100.0	%	 	 	923,018	 	 	 	100.0	%
	 	Cost
                                                 of Goods Sold	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	6900
                                                 · COGS Spa	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	6905
                                                 · Facial & Waxing COGS	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	 	6920
                                                 · Massage & Body COGS	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	 	6940
                                                                      · Retail Sales COGS	 	 	8,665	 	 	 	48.1	%	 	 	6,268	 	 	 	2.7	%	 	 	2,397	 	 	 	35.8	%	 	 	4,155	 	 	 	55.5	%	 	 	4,509	 	 	 	42.8	%	 	 	22,204	 	 	 	2.4	%
	 	Total
                                                                      6900 · COGS Spa	 	 	8,665	 	 	 	3.8	%	 	 	6,268	 	 	 	2.9	%	 	 	2,397	 	 	 	20.4	%	 	 	4,155	 	 	 	2.1	%	 	 	4,509	 	 	 	14.7	%	 	 	22,204	 	 	 	2.4	%
	 	Total
                                                                      COGS	 	 	8,665	 	 	 	3.8	%	 	 	6,268	 	 	 	2.9	%	 	 	2,397	 	 	 	20.4	%	 	 	4,155	 	 	 	2.1	%	 	 	4,509	 	 	 	14.7	%	 	 	22,204	 	 	 	2.4	%
	 	Gross
                                                 Profit	 	 	221,925	 	 	 	96.2	%	 	 	212,562	 	 	 	97.1	%	 	 	9,363	 	 	 	79.6	%	 	 	195,840	 	 	 	97.9	%	 	 	26,085	 	 	 	85.3	%	 	 	900,814	 	 	 	97.6	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	Expense	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	4950
                                                 · Spa Commissions	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	4951
                                                 · Treatment Commissions	 	 	34,221	 	 	 	14.8	%	 	 	34,136	 	 	 	15.6	%	 	 	85	 	 	 	0.7	%	 	 	32,170	 	 	 	16.1	%	 	 	2,051	 	 	 	6.7	%	 	 	138,549	 	 	 	15.0	%
	 	4952
                                                 · Retail Commissions	 	 	1,251	 	 	 	0.5	%	 	 	597	 	 	 	0.3	%	 	 	654	 	 	 	5.6	%	 	 	333	 	 	 	0.2	%	 	 	917	 	 	 	3.0	%	 	 	1,824	 	 	 	0.2	%
	 	4953
                                                 · Front Desk 1% Treatment	 	 	2,540	 	 	 	1.1	%	 	 	2,324	 	 	 	1.1	%	 	 	215	 	 	 	1.8	%	 	 	2,190	 	 	 	1.1	%	 	 	349	 	 	 	1.1	%	 	 	8,655	 	 	 	0.9	%
	 	4954
                                                 · Treatment Commissions-In Room	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	 	4955
                                                 · In Room 5% Treatment Commission	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	60	 	 	 	0.0	%	 	 	(60	)	 	 	-0.2	%	 	 	1,599	 	 	 	0.2	%
	 	4950
                                                                      · Spa Commissions - Other	 	 	-	 	 	 	0.0	%	 	 	206	 	 	 	0.1	%	 	 	(206	)	 	 	-1.8	%	 	 	398	 	 	 	0.2	%	 	 	(398	)	 	 	-1.3	%	 	 	2,488	 	 	 	0.3	%
	 	Total
                                                 4950 · Spa Commissions	 	 	38,011	 	 	 	16.5	%	 	 	37,263	 	 	 	17.0	%	 	 	739	 	 	 	6.3	%	 	 	35,152	 	 	 	17.6	%	 	 	2,968	 	 	 	9.7	%	 	 	153,114	 	 	 	16.6	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	5000
                                                 · Payroll & Benefits	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	5990000
                                                 · Spa Salary & Wages	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	5906
                                                 · Yoga Classes	 	 	6,067	 	 	 	2.6	%	 	 	5,320	 	 	 	2.4	%	 	 	747	 	 	 	6.4	%	 	 	5,000	 	 	 	2.5	%	 	 	1,067	 	 	 	3.5	%	 	 	22,873	 	 	 	2.5	%
	 	5990130
                                                 · Spa Therapist	 	 	15,747	 	 	 	6.8	%	 	 	15,665	 	 	 	7.2	%	 	 	82	 	 	 	0.7	%	 	 	14,918	 	 	 	7.5	%	 	 	829	 	 	 	2.7	%	 	 	81,944	 	 	 	8.9	%
	 	5990140
                                                 · Lead Spa Therapist	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	 	5990145
                                                 · Spa Trainer	 	 	68	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	68	 	 	 	0.6	%	 	 	44	 	 	 	0.0	%	 	 	24	 	 	 	0.1	%	 	 	483	 	 	 	0.1	%
	 	5990150
                                                 · Spa Supervisor	 	 	6,101	 	 	 	2.6	%	 	 	-	 	 	 	0.0	%	 	 	6,101	 	 	 	51.9	%	 	 	1,396	 	 	 	0.7	%	 	 	4,705	 	 	 	15.4	%	 	 	13,247	 	 	 	1.4	%
	 	5990170
                                                 · Spa Manager	 	 	18,486	 	 	 	8.0	%	 	 	20,369	 	 	 	9.3	%	 	 	(1,883	)	 	 	-16.0	%	 	 	19,434	 	 	 	9.7	%	 	 	(948	)	 	 	-3.1	%	 	 	69,364	 	 	 	7.5	%
	 	5990330
                                                 · Spa Front Desk	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	 	5990600
                                                 · Spa Guest Service Agent	 	 	10,212	 	 	 	4.4	%	 	 	15,568	 	 	 	7.1	%	 	 	(5,356	)	 	 	-45.5	%	 	 	17,783	 	 	 	8.9	%	 	 	(7,571	)	 	 	-24.7	%	 	 	68,948	 	 	 	7.5	%
	 	5990601
                                                 · Spa Laundry Attendant	 	 	12,070	 	 	 	5.2	%	 	 	-	 	 	 	0.0	%	 	 	12,070	 	 	 	102.6	%	 	 	12,865	 	 	 	6.4	%	 	 	(796	)	 	 	-2.6	%	 	 	50,516	 	 	 	5.5	%
	 	5990602
                                                 · Spa Shared Services	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	 	5990603
                                                                      · Spa Other Pay	 	 	-	 	 	 	0.0	%	 	 	13,003	 	 	 	5.9	%	 	 	(13,003	)	 	 	-110.6	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	 	Total
                                                 5990000 · Spa Salary & Wages	 	 	68,751	 	 	 	29.8	%	 	 	69,925	 	 	 	32.0	%	 	 	(241	)	 	 	-2.1	%	 	 	71,440	 	 	 	35.7	%	 	 	(1,893	)	 	 	-6.2	%	 	 	307,375	 	 	 	33.3	%
	 	5999050
                                                 · Spa Taxes & Benefits	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	5951
                                                 · Spa Payroll Taxes	 	 	17,011	 	 	 	7.4	%	 	 	17,254	 	 	 	7.9	%	 	 	(243	)	 	 	-2.1	%	 	 	16,018	 	 	 	8.0	%	 	 	993	 	 	 	3.2	%	 	 	57,122	 	 	 	6.2	%
	 	5952
                                                 · Spa Workers' Comp	 	 	5,065	 	 	 	2.2	%	 	 	2,048	 	 	 	0.9	%	 	 	3,017	 	 	 	25.7	%	 	 	1,792	 	 	 	0.9	%	 	 	3,273	 	 	 	10.7	%	 	 	7,153	 	 	 	0.8	%
	 	5953
                                                 · Spa Employee Benefits	 	 	2,973	 	 	 	1.3	%	 	 	3,017	 	 	 	1.4	%	 	 	(44	)	 	 	-0.4	%	 	 	2,864	 	 	 	1.4	%	 	 	109	 	 	 	0.4	%	 	 	7,575	 	 	 	0.8	%
	 	5955
                                                 · Spa PTO	 	 	1,100	 	 	 	0.5	%	 	 	1,143	 	 	 	0.5	%	 	 	(43	)	 	 	-0.4	%	 	 	1,169	 	 	 	0.6	%	 	 	(69	)	 	 	-0.2	%	 	 	4,065	 	 	 	0.4	%
	 	5956
                                                                      · Spa Employ Meals	 	 	3,811	 	 	 	1.7	%	 	 	3,636	 	 	 	1.7	%	 	 	175	 	 	 	1.5	%	 	 	3,622	 	 	 	1.8	%	 	 	188	 	 	 	0.6	%	 	 	16,865	 	 	 	1.8	%
	 	Total
                                                                      5999050 · Spa Taxes & Benefits	 	 	29,960	 	 	 	13.0	%	 	 	27,098	 	 	 	12.4	%	 	 	2,861	 	 	 	24.3	%	 	 	25,465	 	 	 	12.7	%	 	 	4,494	 	 	 	14.7	%	 	 	92,779	 	 	 	10.1	%
	 	Total
                                                 5000 · Payroll & Benefits	 	 	98,711	 	 	 	42.8	%	 	 	97,024	 	 	 	44.3	%	 	 	2,620	 	 	 	22.3	%	 	 	96,905	 	 	 	48.5	%	 	 	2,601	 	 	 	8.5	%	 	 	400,154	 	 	 	43.4	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	8900
                                                 · Spa Direct Expense	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	8901
                                                 · Advertising & Promotion	 	 	2,562	 	 	 	1.1	%	 	 	416	 	 	 	0.2	%	 	 	2,146	 	 	 	18.2	%	 	 	437	 	 	 	0.2	%	 	 	2,125	 	 	 	6.9	%	 	 	2,601	 	 	 	0.3	%
	 	8907
                                                 · Bank Fees	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	 	8912
                                                 · Guest Relations	 	 	145	 	 	 	0.1	%	 	 	227	 	 	 	0.1	%	 	 	(82	)	 	 	-0.7	%	 	 	102	 	 	 	0.1	%	 	 	43	 	 	 	0.1	%	 	 	1,040	 	 	 	0.1	%
	 	8913
                                                 · Spa Payroll Processing Fees	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	 	8914
                                                 · Guest Amenities	 	 	2,894	 	 	 	1.3	%	 	 	1,516	 	 	 	0.7	%	 	 	1,378	 	 	 	11.7	%	 	 	2,749	 	 	 	1.4	%	 	 	145	 	 	 	0.5	%	 	 	10,199	 	 	 	1.1	%
	 	8915
                                                 · Operating Supply	 	 	164	 	 	 	0.1	%	 	 	9	 	 	 	0.0	%	 	 	155	 	 	 	1.3	%	 	 	146	 	 	 	0.1	%	 	 	18	 	 	 	0.1	%	 	 	862	 	 	 	0.1	%
	 	8917
                                                 · Business Meals & Entertainment	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	 	8922
                                                 · Cleaning & Janitorial	 	 	20	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	20	 	 	 	0.2	%	 	 	-	 	 	 	0.0	%	 	 	20	 	 	 	0.1	%	 	 	-	 	 	 	0.0	%
	 	8925
                                                 · Contract Labor	 	 	94	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	94	 	 	 	0.8	%	 	 	-	 	 	 	0.0	%	 	 	94	 	 	 	0.3	%	 	 	-	 	 	 	0.0	%
	 	8928
                                                 · Credit Card Fees	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	 	8934
                                                 · Dues & Subscriptions	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	 	8936
                                                 · Other Miscellaneous	 	 	-	 	 	 	0.0	%	 	 	67	 	 	 	0.0	%	 	 	(67	)	 	 	-0.6	%	 	 	88	 	 	 	0.0	%	 	 	(88	)	 	 	-0.3	%	 	 	1,525	 	 	 	0.2	%
	 	8939
                                                 · Employee Relations & Training	 	 	624	 	 	 	0.3	%	 	 	1,810	 	 	 	0.8	%	 	 	(1,187	)	 	 	-10.1	%	 	 	1,923	 	 	 	1.0	%	 	 	(1,300	)	 	 	-4.2	%	 	 	4,113	 	 	 	0.4	%
	 	8949
                                                 · Insurance	 	 	80	 	 	 	0.0	%	 	 	316	 	 	 	0.1	%	 	 	(236	)	 	 	-2.0	%	 	 	229	 	 	 	0.1	%	 	 	(149	)	 	 	-0.5	%	 	 	249	 	 	 	0.0	%
	 	8952
                                                 · Computer Main. & Support	 	 	867	 	 	 	0.4	%	 	 	1,007	 	 	 	0.5	%	 	 	(140	)	 	 	-1.2	%	 	 	1,058	 	 	 	0.5	%	 	 	(191	)	 	 	-0.6	%	 	 	3,133	 	 	 	0.3	%
	 	8955
                                                 · Laundry & Dry Cleaning	 	 	-	 	 	 	0.0	%	 	 	307	 	 	 	0.1	%	 	 	(307	)	 	 	-2.6	%	 	 	444	 	 	 	0.2	%	 	 	(444	)	 	 	-1.5	%	 	 	581	 	 	 	0.1	%
	 	8961
                                                 · Licenses & Permits	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	 	8963
                                                 · AP & AG - Promotions	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	 	8964
                                                 · Linen Supply	 	 	6,596	 	 	 	2.9	%	 	 	8,567	 	 	 	3.9	%	 	 	(1,971	)	 	 	-16.8	%	 	 	9,222	 	 	 	4.6	%	 	 	(2,626	)	 	 	-8.6	%	 	 	41,084	 	 	 	4.5	%
	 	8967
                                                 · Office Supplies	 	 	193	 	 	 	0.1	%	 	 	279	 	 	 	0.1	%	 	 	(85	)	 	 	-0.7	%	 	 	492	 	 	 	0.2	%	 	 	(298	)	 	 	-1.0	%	 	 	2,870	 	 	 	0.3	%
	 	8968
                                                 · Spa Supplies	 	 	2,169	 	 	 	0.9	%	 	 	1,757	 	 	 	0.8	%	 	 	411	 	 	 	3.5	%	 	 	2,207	 	 	 	1.1	%	 	 	(39	)	 	 	-0.1	%	 	 	10,170	 	 	 	1.1	%
	 	8970
                                                 · Treatment Supplies	 	 	3,734	 	 	 	1.6	%	 	 	3,420	 	 	 	1.6	%	 	 	314	 	 	 	2.7	%	 	 	3,781	 	 	 	1.9	%	 	 	(47	)	 	 	-0.2	%	 	 	18,858	 	 	 	2.0	%
	 	8976
                                                 · Postage & Delivery	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	 	8978
                                                 · Express Mail	 	 	104	 	 	 	0.0	%	 	 	141	 	 	 	0.1	%	 	 	(37	)	 	 	-0.3	%	 	 	54	 	 	 	0.0	%	 	 	50	 	 	 	0.2	%	 	 	275	 	 	 	0.0	%
	 	8979
                                                 · Printing	 	 	4,450	 	 	 	1.9	%	 	 	1,483	 	 	 	0.7	%	 	 	2,967	 	 	 	25.2	%	 	 	300	 	 	 	0.2	%	 	 	4,150	 	 	 	13.6	%	 	 	755	 	 	 	0.1	%
	 	8985
                                                 · Repairs & Maintenance	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	 	8988
                                                 · Telephone Cell & Radio	 	 	150	 	 	 	0.1	%	 	 	153	 	 	 	0.1	%	 	 	(3	)	 	 	0.0	%	 	 	150	 	 	 	0.1	%	 	 	-	 	 	 	0.0	%	 	 	752	 	 	 	0.1	%
	 	8991
                                                 · Uniforms	 	 	133	 	 	 	0.1	%	 	 	8	 	 	 	0.0	%	 	 	125	 	 	 	1.1	%	 	 	-	 	 	 	0.0	%	 	 	133	 	 	 	0.4	%	 	 	729	 	 	 	0.1	%
	 	8996
                                                 · Rent Expense	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	 	8997
                                                 · Business Travel	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	 	8998
                                                 · Business Meals	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	 	8999
                                                                      · Management Fee	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	 	Total
                                                                      8900 · Spa Direct Expense	 	 	24,978	 	 	 	10.8	%	 	 	21,483	 	 	 	9.8	%	 	 	3,494	 	 	 	29.7	%	 	 	23,384	 	 	 	11.7	%	 	 	1,594	 	 	 	5.2	%	 	 	99,796	 	 	 	10.8	%
	 	Total
                                                                      Expense	 	 	161,700	 	 	 	70.1	%	 	 	155,770	 	 	 	71.2	%	 	 	5,929	 	 	 	50.4	%	 	 	155,441	 	 	 	77.7	%	 	 	6,259	 	 	 	20.5	%	 	 	653,064	 	 	 	70.8	%
	 	Net
                                                                        Income	 	 	60,225	 	 	 	26.1	%	 	 	56,792	 	 	 	26.0	%	 	 	3,434	 	 	 	29.2	%	 	 	40,399	 	 	 	20.2	%	 	 	19,826	 	 	 	64.8	%	 	 	247,750	 	 	 	26.8	%

 

 

	 	Page 9 of 23	109.1. Ex 18(a)- 1st Part - L'Auberge_Resort March 13 Issue

  

 

    	 

    	 

      

 

L'Auberge de Sedona, LLC.

Spa Department

January through March 2013

 

 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	TOTAL	 
	 	 	Jan 13	 	 	% of Income	 	 	Feb 13	 	 	% of Income	 	 	Mar 13	 	 	% of Income	 	 	Jan - Mar 13	 	 	% of Income	 
	Ordinary Income/Expense	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Income	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4900 · Spa Revenue	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4905 · Facial & Waxing	 	 	8,681.00	 	 	 	13.58	%	 	 	11,447.50	 	 	 	16.13	%	 	 	13,961.50	 	 	 	14.59	%	 	 	34,090.00	 	 	 	14.78	%
	4920 · Massage & Body	 	 	50,107.37	 	 	 	78.36	%	 	 	53,514.58	 	 	 	75.41	%	 	 	74,852.79	 	 	 	78.24	%	 	 	178,474.74	 	 	 	77.4	%
	4940 · Retail Sales	 	 	5,156.50	 	 	 	8.06	%	 	 	6,006.50	 	 	 	8.46	%	 	 	6,862.00	 	 	 	7.17	%	 	 	18,025.00	 	 	 	7.82	%
	Total 4900 · Spa Revenue	 	 	63,944.87	 	 	 	100.0	%	 	 	70,968.58	 	 	 	100.0	%	 	 	95,676.29	 	 	 	100.0	%	 	 	230,589.74	 	 	 	100.0	%
	Total Income	 	 	63,944.87	 	 	 	100.0	%	 	 	70,968.58	 	 	 	100.0	%	 	 	95,676.29	 	 	 	100.0	%	 	 	230,589.74	 	 	 	100.0	%
	Cost of Goods Sold	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	6900 · COGS Spa	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	6940 · Retail Sales COGS	 	 	3,182.44	 	 	 	4.98	%	 	 	2,887.27	 	 	 	4.07	%	 	 	2,595.02	 	 	 	2.71	%	 	 	8,664.73	 	 	 	3.76	%
	Total 6900 · COGS Spa	 	 	3,182.44	 	 	 	4.98	%	 	 	2,887.27	 	 	 	4.07	%	 	 	2,595.02	 	 	 	2.71	%	 	 	8,664.73	 	 	 	3.76	%
	Total COGS	 	 	3,182.44	 	 	 	4.98	%	 	 	2,887.27	 	 	 	4.07	%	 	 	2,595.02	 	 	 	2.71	%	 	 	8,664.73	 	 	 	3.76	%
	Gross Profit	 	 	60,762.43	 	 	 	95.02	%	 	 	68,081.31	 	 	 	95.93	%	 	 	93,081.27	 	 	 	97.29	%	 	 	221,925.01	 	 	 	96.24	%
	Expense	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4950 · Spa Commissions	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4951 · Treatment Commissions	 	 	9,954.55	 	 	 	15.57	%	 	 	10,058.81	 	 	 	14.17	%	 	 	14,207.55	 	 	 	14.85	%	 	 	34,220.91	 	 	 	14.84	%
	4952 · Retail Commissions	 	 	358.30	 	 	 	0.56	%	 	 	427.20	 	 	 	0.6	%	 	 	465.15	 	 	 	0.49	%	 	 	1,250.65	 	 	 	0.54	%
	4953 · Front Desk 1% Treatment	 	 	647.51	 	 	 	1.01	%	 	 	663.04	 	 	 	0.93	%	 	 	1,229.25	 	 	 	1.29	%	 	 	2,539.80	 	 	 	1.1	%
	Total 4950 · Spa Commissions	 	 	10,960.36	 	 	 	17.14	%	 	 	11,149.05	 	 	 	15.71	%	 	 	15,901.95	 	 	 	16.62	%	 	 	38,011.36	 	 	 	16.48	%
	5000 · Payroll & Benefits	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5990000 · Spa Salary & Wages	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5906 · Yoga Classes	 	 	2,082.75	 	 	 	3.26	%	 	 	1,824.50	 	 	 	2.57	%	 	 	2,159.75	 	 	 	2.26	%	 	 	6,067.00	 	 	 	2.63	%
	5990130 · Spa Therapist	 	 	4,889.00	 	 	 	7.65	%	 	 	4,786.50	 	 	 	6.75	%	 	 	6,071.39	 	 	 	6.35	%	 	 	15,746.89	 	 	 	6.83	%
	5990145 · Spa Trainer	 	 	0.00	 	 	 	0.0	%	 	 	0.00	 	 	 	0.0	%	 	 	68.00	 	 	 	0.07	%	 	 	68.00	 	 	 	0.03	%
	5990150 · Spa Supervisor	 	 	2,160.00	 	 	 	3.38	%	 	 	1,734.00	 	 	 	2.44	%	 	 	2,207.25	 	 	 	2.31	%	 	 	6,101.25	 	 	 	2.65	%
	5990170 · Spa Manager	 	 	4,843.00	 	 	 	7.57	%	 	 	6,000.00	 	 	 	8.45	%	 	 	7,643.00	 	 	 	7.99	%	 	 	18,486.00	 	 	 	8.02	%
	5990600 · Spa Guest Service Agent	 	 	3,446.25	 	 	 	5.39	%	 	 	3,162.50	 	 	 	4.46	%	 	 	3,603.38	 	 	 	3.77	%	 	 	10,212.13	 	 	 	4.43	%
	5990601 · Spa Laundry Attendant	 	 	4,234.76	 	 	 	6.62	%	 	 	3,910.64	 	 	 	5.51	%	 	 	3,924.27	 	 	 	4.1	%	 	 	12,069.67	 	 	 	5.23	%
	Total 5990000 · Spa Salary & Wages	 	 	21,655.76	 	 	 	33.87	%	 	 	21,418.14	 	 	 	30.18	%	 	 	25,677.04	 	 	 	26.84	%	 	 	68,750.94	 	 	 	29.82	%
	5999050 · Spa Taxes & Benefits	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5951 · Spa Payroll Taxes	 	 	5,905.15	 	 	 	9.24	%	 	 	4,831.95	 	 	 	6.81	%	 	 	6,273.75	 	 	 	6.56	%	 	 	17,010.85	 	 	 	7.38	%
	5952 · Spa Workers' Comp	 	 	773.00	 	 	 	1.21	%	 	 	773.00	 	 	 	1.09	%	 	 	3,518.51	 	 	 	3.68	%	 	 	5,064.51	 	 	 	2.2	%
	5953 · Spa Employee Benefits	 	 	418.76	 	 	 	0.66	%	 	 	1,311.79	 	 	 	1.85	%	 	 	1,242.63	 	 	 	1.3	%	 	 	2,973.18	 	 	 	1.29	%
	5955 · Spa PTO	 	 	262.99	 	 	 	0.41	%	 	 	356.03	 	 	 	0.5	%	 	 	481.17	 	 	 	0.5	%	 	 	1,100.19	 	 	 	0.48	%
	5956 · Spa Employ Meals	 	 	1,179.68	 	 	 	1.85	%	 	 	1,247.63	 	 	 	1.76	%	 	 	1,383.56	 	 	 	1.45	%	 	 	3,810.87	 	 	 	1.65	%
	Total 5999050 · Spa Taxes & Benefits	 	 	8,539.58	 	 	 	13.36	%	 	 	8,520.40	 	 	 	12.01	%	 	 	12,899.62	 	 	 	13.48	%	 	 	29,959.60	 	 	 	12.99	%
	Total 5000 · Payroll & Benefits	 	 	30,195.34	 	 	 	47.22	%	 	 	29,938.54	 	 	 	42.19	%	 	 	38,576.66	 	 	 	40.32	%	 	 	98,710.54	 	 	 	42.81	%
	8900 · Spa Direct Expense	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	8901 · Advertising & Promotion	 	 	0.00	 	 	 	0.0	%	 	 	2,400.00	 	 	 	3.38	%	 	 	162.00	 	 	 	0.17	%	 	 	2,562.00	 	 	 	1.11	%
	8912 · Guest Relations	 	 	145.00	 	 	 	0.23	%	 	 	0.00	 	 	 	0.0	%	 	 	0.00	 	 	 	0.0	%	 	 	145.00	 	 	 	0.06	%
	8914 · Guest Amenities	 	 	675.76	 	 	 	1.06	%	 	 	882.00	 	 	 	1.24	%	 	 	1,336.44	 	 	 	1.4	%	 	 	2,894.20	 	 	 	1.26	%
	8915 · Operating Supply	 	 	8.83	 	 	 	0.01	%	 	 	80.60	 	 	 	0.11	%	 	 	74.54	 	 	 	0.08	%	 	 	163.97	 	 	 	0.07	%
	8922 · Cleaning & Janitorial	 	 	0.00	 	 	 	0.0	%	 	 	19.98	 	 	 	0.03	%	 	 	0.00	 	 	 	0.0	%	 	 	19.98	 	 	 	0.01	%
	8925 · Contract Labor	 	 	0.00	 	 	 	0.0	%	 	 	0.00	 	 	 	0.0	%	 	 	93.53	 	 	 	0.1	%	 	 	93.53	 	 	 	0.04	%
	8939 · Employee Relations & Training	 	 	239.00	 	 	 	0.37	%	 	 	94.50	 	 	 	0.13	%	 	 	290.00	 	 	 	0.3	%	 	 	623.50	 	 	 	0.27	%
	8949 · Insurance	 	 	80.00	 	 	 	0.13	%	 	 	0.00	 	 	 	0.0	%	 	 	0.00	 	 	 	0.0	%	 	 	80.00	 	 	 	0.04	%
	8952 · Computer Main. & Support	 	 	578.00	 	 	 	0.9	%	 	 	0.00	 	 	 	0.0	%	 	 	289.00	 	 	 	0.3	%	 	 	867.00	 	 	 	0.38	%
	8964 · Linen Supply	 	 	2,153.84	 	 	 	3.37	%	 	 	2,129.50	 	 	 	3.0	%	 	 	2,312.76	 	 	 	2.42	%	 	 	6,596.10	 	 	 	2.86	%
	8967 · Office Supplies	 	 	6.17	 	 	 	0.01	%	 	 	0.00	 	 	 	0.0	%	 	 	187.21	 	 	 	0.2	%	 	 	193.38	 	 	 	0.08	%
	8968 · Spa Supplies	 	 	167.54	 	 	 	0.26	%	 	 	501.48	 	 	 	0.71	%	 	 	1,499.60	 	 	 	1.57	%	 	 	2,168.62	 	 	 	0.94	%
	8970 · Treatment Supplies	 	 	1,101.97	 	 	 	1.72	%	 	 	1,193.98	 	 	 	1.68	%	 	 	1,437.77	 	 	 	1.5	%	 	 	3,733.72	 	 	 	1.62	%
	8978 · Express Mail	 	 	104.01	 	 	 	0.16	%	 	 	0.00	 	 	 	0.0	%	 	 	0.00	 	 	 	0.0	%	 	 	104.01	 	 	 	0.05	%
	8979 · Printing	 	 	1,483.33	 	 	 	2.32	%	 	 	1,483.33	 	 	 	2.09	%	 	 	1,483.33	 	 	 	1.55	%	 	 	4,449.99	 	 	 	1.93	%
	8988 · Telephone Cell & Radio	 	 	50.00	 	 	 	0.08	%	 	 	50.00	 	 	 	0.07	%	 	 	50.00	 	 	 	0.05	%	 	 	150.00	 	 	 	0.07	%
	8991 · Uniforms	 	 	7.94	 	 	 	0.01	%	 	 	45.60	 	 	 	0.06	%	 	 	79.20	 	 	 	0.08	%	 	 	132.74	 	 	 	0.06	%
	Total 8900 · Spa Direct Expense	 	 	6,801.39	 	 	 	10.64	%	 	 	8,880.97	 	 	 	12.51	%	 	 	9,295.38	 	 	 	9.72	%	 	 	24,977.74	 	 	 	10.83	%
	Total Expense	 	 	47,957.09	 	 	 	75.0	%	 	 	49,968.56	 	 	 	70.41	%	 	 	63,773.99	 	 	 	66.66	%	 	 	161,699.64	 	 	 	70.12	%
	Net Ordinary Income	 	 	12,805.34	 	 	 	20.03	%	 	 	18,112.75	 	 	 	25.52	%	 	 	29,307.28	 	 	 	30.63	%	 	 	60,225.37	 	 	 	26.12	%
	Net Income	 	 	12,805.34	 	 	 	20.03	%	 	 	18,112.75	 	 	 	25.52	%	 	 	29,307.28	 	 	 	30.63	%	 	 	60,225.37	 	 	 	26.12	%

 

 

 

	 	Page 10 of 23	109.1. Ex 18(a)- 1st Part - L'Auberge_Resort March 13 Issue / Spa

 

 

 

    	 

    	 

     

L'Auberge de Sedona Resort

Miscellaneous Department

Actual vs. Budget and Prior Year

March 2013

 

	 	 	 	 
	 	 	Current
    Month	 
	 	 	Actual	 	 	%
                                                                                                                                                                                                                                                                       to
                                                                                                                                                                                                                                                                       
Revenue	 	 	Budget	 	 	%
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              to
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
Revenue	 	 	Variance	 	 	%
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              to
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
Revenue	 	 	Prior
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Year	 	 	%
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              to
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
Revenue	 	 	Variance	 	 	%
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              to
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
Revenue	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Revenue	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4400 · Telephone Revenue	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4401
    · Local Phone Charges	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	4402
    · Long Distance Charges	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	Total 4400 · Telephone
    Revenue	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4500 · Miscellaneous
    Revenue	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4500 ·
    Miscellaneous Revenue - Other	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	4501 ·
    Laundry Charges	 	 	376	 	 	 	0.4	%	 	 	442	 	 	 	0.5	%	 	 	(65	)	 	 	-0.5	%	 	 	443	 	 	 	0.8	%	 	 	(67	)	 	 	-0.2	%
	4502 · UPS/Postage Charges	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	4503 ·
    Ticket Sales Tour	 	 	125	 	 	 	0.1	%	 	 	204	 	 	 	0.3	%	 	 	(79	)	 	 	-0.6	%	 	 	205	 	 	 	0.4	%	 	 	(80	)	 	 	-0.2	%
	4505 ·
    Resort Fee	 	 	54,515	 	 	 	58.1	%	 	 	49,847	 	 	 	61.4	%	 	 	4,668	 	 	 	36.9	%	 	 	50,013	 	 	 	89.3	%	 	 	4,502	 	 	 	11.9	%
	4506 ·
    Commissions Other	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	4507 ·
    House Grats	 	 	877	 	 	 	0.9	%	 	 	-	 	 	 	0.0	%	 	 	877	 	 	 	6.9	%	 	 	-	 	 	 	0.0	%	 	 	877	 	 	 	2.3	%
	4508 ·
    Nightly Parking	 	 	27,280	 	 	 	29.1	%	 	 	25,332	 	 	 	31.2	%	 	 	1,948	 	 	 	15.4	%	 	 	-	 	 	 	0.0	%	 	 	27,280	 	 	 	72.2	%
	4510 ·
    Pet Fees	 	 	2,450	 	 	 	2.6	%	 	 	2,821	 	 	 	3.5	%	 	 	(371	)	 	 	-2.9	%	 	 	2,830	 	 	 	5.1	%	 	 	(380	)	 	 	-1.0	%
	4511 ·
    Package Charges	 	 	6,866	 	 	 	7.3	%	 	 	2,387	 	 	 	2.9	%	 	 	4,479	 	 	 	35.4	%	 	 	2,395	 	 	 	4.3	%	 	 	4,471	 	 	 	11.8	%
	4516 ·
    Music CD Sales	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	4517 ·
    Amenity Fee	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	4520 ·
    Other Miscellaneous	 	 	1,290	 	 	 	1.4	%	 	 	103	 	 	 	0.1	%	 	 	1,187	 	 	 	9.4	%	 	 	103	 	 	 	0.2	%	 	 	1,187	 	 	 	3.1	%
	4525 ·
    Transient No show	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	4530
    · 2008 Consultant Reconcilliation	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	Total 4500
    · Miscellaneous Revenue	 	 	93,780	 	 	 	100.0	%	 	 	81,135	 	 	 	100.0	%	 	 	12,644	 	 	 	100.0	%	 	 	55,989	 	 	 	100.0	%	 	 	37,791	 	 	 	100.0	%
	Total Revenue	 	 	93,780	 	 	 	100.0	%	 	 	81,135	 	 	 	100.0	%	 	 	12,644	 	 	 	100.0	%	 	 	55,989	 	 	 	100.0	%	 	 	37,791	 	 	 	100.0	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Cost of Goods Sold	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	6400 · Cost of Telephone	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	6401 ·
    Local Phone Costs	 	 	2,803	 	 	 	3.0	%	 	 	1,365	 	 	 	1.7	%	 	 	1,438	 	 	 	11.4	%	 	 	1,326	 	 	 	2.4	%	 	 	1,478	 	 	 	3.9	%
	6402
    · Long Distance Phone Costs	 	 	-	 	 	 	0.0	%	 	 	1,407	 	 	 	1.7	%	 	 	(1,407	)	 	 	-11.1	%	 	 	1,366	 	 	 	2.4	%	 	 	(1,366	)	 	 	-3.6	%
	Total 6400 · Cost of
    Telephone	 	 	2,803	 	 	 	3.0	%	 	 	2,772	 	 	 	3.4	%	 	 	31	 	 	 	0.2	%	 	 	2,691	 	 	 	4.8	%	 	 	112	 	 	 	0.3	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	6500 · Cost of Other
    Revenue	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	6500 ·
    Cost of Other Revenue - Other	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	6506 ·
    Cost of Guest Valet	 	 	296	 	 	 	0.3	%	 	 	-	 	 	 	0.0	%	 	 	296	 	 	 	2.3	%	 	 	-	 	 	 	0.0	%	 	 	296	 	 	 	0.8	%
	6510 ·
    Cost of Packages, Misc.	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	6516 ·
    Cost of Guest Meals - Reception	 	 	4,388	 	 	 	4.7	%	 	 	4,674	 	 	 	5.8	%	 	 	(286	)	 	 	-2.3	%	 	 	4,538	 	 	 	8.1	%	 	 	(150	)	 	 	-0.4	%
	6517 ·
    Romance Boutique Package	 	 	(171	)	 	 	-0.2	%	 	 	-	 	 	 	0.0	%	 	 	(171	)	 	 	-1.4	%	 	 	-	 	 	 	0.0	%	 	 	(171	)	 	 	-0.5	%
	6520 ·
    Cost of Misc. Revenue	 	 	(302	)	 	 	-0.3	%	 	 	2,072	 	 	 	2.6	%	 	 	(2,374	)	 	 	-18.8	%	 	 	2,011	 	 	 	3.6	%	 	 	(2,314	)	 	 	-6.1	%
	6551 ·
    Cost of Resort Fee-F & B	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	6553 · Cost of Resort
    Fee-StarGazer	 	 	1,770	 	 	 	1.9	%	 	 	2,750	 	 	 	3.4	%	 	 	(980	)	 	 	-7.8	%	 	 	2,670	 	 	 	4.8	%	 	 	(900	)	 	 	-2.4	%
	6556 ·
    Cost of Resort Fee - Photograph	 	 	500	 	 	 	0.5	%	 	 	644	 	 	 	0.8	%	 	 	(144	)	 	 	-1.1	%	 	 	625	 	 	 	1.1	%	 	 	(125	)	 	 	-0.3	%
	6557 ·
    Cost of Resort Fee-Story Teller	 	 	350	 	 	 	0.4	%	 	 	695	 	 	 	0.9	%	 	 	(345	)	 	 	-2.7	%	 	 	675	 	 	 	1.2	%	 	 	(325	)	 	 	-0.9	%
	6558 ·
    Cost of Resort Fee-Guided Image	 	 	675	 	 	 	0.7	%	 	 	541	 	 	 	0.7	%	 	 	134	 	 	 	1.1	%	 	 	525	 	 	 	0.9	%	 	 	150	 	 	 	0.4	%
	6561 ·
    Cost of Resort Fee-Guest Svcs	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	6562 ·
    Cost of Resort Fee-Yoga Instr	 	 	-	 	 	 	0.0	%	 	 	5	 	 	 	0.0	%	 	 	(5	)	 	 	0.0	%	 	 	5	 	 	 	0.0	%	 	 	(5	)	 	 	0.0	%
	Total 6500
    · Cost of Other Revenue	 	 	7,506	 	 	 	8.0	%	 	 	11,381	 	 	 	14.0	%	 	 	(3,875	)	 	 	-30.6	%	 	 	11,049	 	 	 	19.7	%	 	 	(3,543	)	 	 	-9.4	%
	Total COGS	 	 	10,309	 	 	 	11.0	%	 	 	14,153	 	 	 	17.4	%	 	 	(3,844	)	 	 	-30.4	%	 	 	13,741	 	 	 	24.5	%	 	 	(3,432	)	 	 	-9.1	%
	Gross Profit	 	 	83,471	 	 	 	89.0	%	 	 	66,982	 	 	 	82.6	%	 	 	16,488	 	 	 	130.4	%	 	 	42,248	 	 	 	75.5	%	 	 	41,222	 	 	 	109.1	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5000 · Payroll &
    Benefits	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5500000 · Misc Salary
    & Wages	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5500610
    · Valet	 	 	6,508	 	 	 	6.9	%	 	 	9,275	 	 	 	11.4	%	 	 	(2,767	)	 	 	-21.9	%	 	 	9,005	 	 	 	16.1	%	 	 	(2,497	)	 	 	-6.6	%
	Total 5500000 · Valet
    Salary & Wages	 	 	6,508	 	 	 	6.9	%	 	 	9,275	 	 	 	11.4	%	 	 	(2,767	)	 	 	-21.9	%	 	 	9,005	 	 	 	16.1	%	 	 	(2,497	)	 	 	-6.6	%
	5500050 · Misc Taxes
    & Benefits	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5551 ·
    Misc Payroll Taxes	 	 	1,975	 	 	 	2.1	%	 	 	1,484	 	 	 	1.8	%	 	 	492	 	 	 	3.9	%	 	 	1,440	 	 	 	2.6	%	 	 	535	 	 	 	1.4	%
	5552 ·
    Misc Workers Comp	 	 	-	 	 	 	0.0	%	 	 	97	 	 	 	0.1	%	 	 	(97	)	 	 	-0.8	%	 	 	94	 	 	 	0.2	%	 	 	(94	)	 	 	-0.2	%
	5553 ·
    Misc Employ Benefits	 	 	(269	)	 	 	-0.3	%	 	 	605	 	 	 	0.7	%	 	 	(874	)	 	 	-6.9	%	 	 	587	 	 	 	1.0	%	 	 	(856	)	 	 	-2.3	%
	5555 ·
    Misc PTO	 	 	98	 	 	 	0.1	%	 	 	423	 	 	 	0.5	%	 	 	(325	)	 	 	-2.6	%	 	 	411	 	 	 	0.7	%	 	 	(313	)	 	 	-0.8	%
	5556
    · Misc Employ Meals	 	 	-	 	 	 	0.0	%	 	 	257	 	 	 	0.3	%	 	 	(257	)	 	 	-2.0	%	 	 	249	 	 	 	0.4	%	 	 	(249	)	 	 	-0.7	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total 5999050
    · Valet Taxes & Benefits	 	 	1,805	 	 	 	1.9	%	 	 	2,865	 	 	 	3.5	%	 	 	(1,060	)	 	 	-8.4	%	 	 	2,782	 	 	 	5.0	%	 	 	(977	)	 	 	-2.6	%
	Total 5000
    · Payroll & Benefits	 	 	8,313	 	 	 	8.9	%	 	 	12,140	 	 	 	15.0	%	 	 	(3,828	)	 	 	-30.3	%	 	 	11,786	 	 	 	21.1	%	 	 	(3,474	)	 	 	-9.2	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total
    Expense	 	 	8,313	 	 	 	8.9	%	 	 	12,140	 	 	 	15.0	%	 	 	(3,828	)	 	 	-30.3	%	 	 	11,786	 	 	 	21.1	%	 	 	(3,474	)	 	 	-9.2	%
	Net Income	 	 	75,158	 	 	 	80.1	%	 	 	54,842	 	 	 	67.6	%	 	 	20,316	 	 	 	160.7	%	 	 	30,462	 	 	 	54.4	%	 	 	44,696	 	 	 	118.3	%

 

	 	 	 	 	 	Budget	 
	 	 	Year
                                                                                                                                                       to
                                                                                                                                                       Date	 	 	Full
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 Year	 
	 	 	Actual	 	 	%
                                                                                                                                                                                                                                                                                                                                                                                                       to
                                                                                                                                                                                                                                                                                                                                                                                                       
Revenue	 	 	Budget	 	 	%
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              to
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
Revenue	 	 	Variance	 	 	%
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              to
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
Revenue	 	 	Prior
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Year	 	 	%
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              to
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
Revenue	 	 	Variance	 	 	%
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              to
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
Revenue	 	 	Amount	 	 	%
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              to
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
Revenue	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Revenue	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4400 · Telephone Revenue	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4401
    · Local Phone Charges	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	4402
    · Long Distance Charges	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	(83	)	 	 	0.0	%
	Total 4400 · Telephone
    Revenue	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	(83	)	 	 	0.0	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4500 · Miscellaneous
    Revenue	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4500 ·
    Miscellaneous Revenue - Other	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	4501 ·
    Laundry Charges	 	 	660	 	 	 	0.3	%	 	 	759	 	 	 	0.4	%	 	 	(99	)	 	 	-0.6	%	 	 	836	 	 	 	1.5	%	 	 	(176	)	 	 	-0.3	%	 	 	5,197	 	 	 	0.7	%
	4502 · UPS/Postage Charges	 	 	-	 	 	 	0.0	%	 	 	2	 	 	 	0.0	%	 	 	(2	)	 	 	0.0	%	 	 	2	 	 	 	0.0	%	 	 	(2	)	 	 	0.0	%	 	 	88	 	 	 	0.0	%
	4503 ·
    Ticket Sales Tour	 	 	125	 	 	 	0.1	%	 	 	(5	)	 	 	0.0	%	 	 	130	 	 	 	0.8	%	 	 	575	 	 	 	1.0	%	 	 	(450	)	 	 	-0.7	%	 	 	3,226	 	 	 	0.5	%
	4505 ·
    Resort Fee	 	 	109,510	 	 	 	53.6	%	 	 	104,092	 	 	 	55.4	%	 	 	5,417	 	 	 	32.6	%	 	 	111,921	 	 	 	199.9	%	 	 	(2,411	)	 	 	-4.0	%	 	 	570,872	 	 	 	80.9	%
	4506 ·
    Commissions Other	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	260	 	 	 	0.0	%
	4507 ·
    House Grats	 	 	877	 	 	 	0.4	%	 	 	-	 	 	 	0.0	%	 	 	877	 	 	 	5.3	%	 	 	-	 	 	 	0.0	%	 	 	877	 	 	 	1.4	%	 	 	5,098	 	 	 	0.7	%
	4508 ·
    Nightly Parking	 	 	59,585	 	 	 	29.2	%	 	 	57,565	 	 	 	30.7	%	 	 	2,020	 	 	 	12.2	%	 	 	-	 	 	 	0.0	%	 	 	59,585	 	 	 	98.4	%	 	 	-	 	 	 	0.0	%
	4510 ·
    Pet Fees	 	 	6,273	 	 	 	3.1	%	 	 	6,174	 	 	 	3.3	%	 	 	100	 	 	 	0.6	%	 	 	7,305	 	 	 	13.0	%	 	 	(1,032	)	 	 	-1.7	%	 	 	36,008	 	 	 	5.1	%
	4511 ·
    Package Charges	 	 	25,131	 	 	 	12.3	%	 	 	17,969	 	 	 	9.6	%	 	 	7,162	 	 	 	43.1	%	 	 	22,751	 	 	 	40.6	%	 	 	2,380	 	 	 	3.9	%	 	 	83,548	 	 	 	11.8	%
	4516 ·
    Music CD Sales	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	492357.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	4517 ·
    Amenity Fee	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	4520 ·
    Other Miscellaneous	 	 	2,220	 	 	 	1.1	%	 	 	1,205	 	 	 	0.6	%	 	 	1,014	 	 	 	6.1	%	 	 	441	 	 	 	0.8	%	 	 	1,779	 	 	 	2.9	%	 	 	1,736	 	 	 	0.2	%
	4525 ·
    Transient No show	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	4530
    · 2008 Consultant Reconcilliation	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	Total 4500
    · Miscellaneous Revenue	 	 	204,380	 	 	 	100.0	%	 	 	187,761	 	 	 	100.0	%	 	 	16,619	 	 	 	100.0	%	 	 	143,830	 	 	 	256.9	%	 	 	60,550	 	 	 	100.0	%	 	 	706,033	 	 	 	100.0	%
	Total Revenue	 	 	204,380	 	 	 	100.0	%	 	 	187,761	 	 	 	100.0	%	 	 	16,619	 	 	 	100.0	%	 	 	143,830	 	 	 	256.9	%	 	 	60,550	 	 	 	100.0	%	 	 	705,950	 	 	 	100.0	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Cost of Goods Sold	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	6400 · Cost of Telephone	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	6401 ·
    Local Phone Costs	 	 	6,320	 	 	 	3.1	%	 	 	3,765	 	 	 	2.0	%	 	 	2,556	 	 	 	15.4	%	 	 	3,582	 	 	 	6.4	%	 	 	2,738	 	 	 	4.5	%	 	 	20,465	 	 	 	2.9	%
	6402
    · Long Distance Phone Costs	 	 	51	 	 	 	0.0	%	 	 	1,432	 	 	 	0.8	%	 	 	(1,382	)	 	 	-8.3	%	 	 	1,544	 	 	 	2.8	%	 	 	(1,493	)	 	 	-2.5	%	 	 	11,310	 	 	 	1.6	%
	Total 6400 · Cost of
    Telephone	 	 	6,371	 	 	 	3.1	%	 	 	5,197	 	 	 	2.8	%	 	 	1,174	 	 	 	7.1	%	 	 	5,126	 	 	 	9.2	%	 	 	1,245	 	 	 	2.1	%	 	 	31,775	 	 	 	4.5	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	6500 · Cost of Other
    Revenue	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	6500 ·
    Cost of Other Revenue - Other	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	6506 ·
    Cost of Guest Valet	 	 	444	 	 	 	0.2	%	 	 	24	 	 	 	0.0	%	 	 	420	 	 	 	2.5	%	 	 	-	 	 	 	0.0	%	 	 	444	 	 	 	0.7	%	 	 	-	 	 	 	0.0	%
	6510 ·
    Cost of Packages, Misc.	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	6516 ·
    Cost of Guest Meals - Reception	 	 	6,896	 	 	 	3.4	%	 	 	10,710	 	 	 	5.7	%	 	 	(3,814	)	 	 	-22.9	%	 	 	11,230	 	 	 	20.1	%	 	 	(4,334	)	 	 	-7.2	%	 	 	83,412	 	 	 	11.8	%
	6517 ·
    Romance Boutique Package	 	 	(436	)	 	 	-0.2	%	 	 	-	 	 	 	0.0	%	 	 	(436	)	 	 	-2.6	%	 	 	-	 	 	 	0.0	%	 	 	(436	)	 	 	-0.7	%	 	 	-	 	 	 	0.0	%
	6520 ·
    Cost of Misc. Revenue	 	 	(32	)	 	 	0.0	%	 	 	2,628	 	 	 	1.4	%	 	 	(2,660	)	 	 	-16.0	%	 	 	2,916	 	 	 	5.2	%	 	 	(2,948	)	 	 	-4.9	%	 	 	18,968	 	 	 	2.7	%
	6551 ·
    Cost of Resort Fee-F & B	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	6553 · Cost of Resort
    Fee-StarGazer	 	 	5,095	 	 	 	2.5	%	 	 	5,332	 	 	 	2.8	%	 	 	(237	)	 	 	-1.4	%	 	 	5,500	 	 	 	9.8	%	 	 	(405	)	 	 	-0.7	%	 	 	20,009	 	 	 	2.8	%
	6556 ·
    Cost of Resort Fee - Photograph	 	 	1,725	 	 	 	0.8	%	 	 	1,630	 	 	 	0.9	%	 	 	95	 	 	 	0.6	%	 	 	1,625	 	 	 	2.9	%	 	 	100	 	 	 	0.2	%	 	 	7,206	 	 	 	1.0	%
	6557 ·
    Cost of Resort Fee-Story Teller	 	 	800	 	 	 	0.4	%	 	 	1,924	 	 	 	1.0	%	 	 	(1,124	)	 	 	-6.8	%	 	 	2,325	 	 	 	4.2	%	 	 	(1,525	)	 	 	-2.5	%	 	 	9,046	 	 	 	1.3	%
	6558 ·
    Cost of Resort Fee-Guided Image	 	 	1,875	 	 	 	0.9	%	 	 	1,759	 	 	 	0.9	%	 	 	116	 	 	 	0.7	%	 	 	1,725	 	 	 	3.1	%	 	 	150	 	 	 	0.2	%	 	 	5,780	 	 	 	0.8	%
	6561 ·
    Cost of Resort Fee-Guest Svcs	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	6562 ·
    Cost of Resort Fee-Yoga Instr	 	 	100	 	 	 	0.0	%	 	 	105	 	 	 	0.1	%	 	 	(5	)	 	 	0.0	%	 	 	5	 	 	 	0.0	%	 	 	95	 	 	 	0.2	%	 	 	571	 	 	 	0.1	%
	Total 6500
    · Cost of Other Revenue	 	 	16,467	 	 	 	8.1	%	 	 	24,110	 	 	 	12.8	%	 	 	(7,644	)	 	 	-46.0	%	 	 	25,326	 	 	 	45.2	%	 	 	(8,860	)	 	 	-14.6	%	 	 	144,992	 	 	 	20.5	%
	Total COGS	 	 	22,838	 	 	 	11.2	%	 	 	29,307	 	 	 	15.6	%	 	 	(6,470	)	 	 	-38.9	%	 	 	30,452	 	 	 	54.4	%	 	 	(7,615	)	 	 	-12.6	%	 	 	176,767	 	 	 	25.0	%
	Gross Profit	 	 	181,543	 	 	 	88.8	%	 	 	158,454	 	 	 	84.4	%	 	 	23,089	 	 	 	138.9	%	 	 	113,378	 	 	 	202.5	%	 	 	68,165	 	 	 	112.6	%	 	 	529,183	 	 	 	75.0	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5000 · Payroll &
    Benefits	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5500000 · Misc Salary
    & Wages	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5500610
    · Valet	 	 	22,010	 	 	 	10.8	%	 	 	23,522	 	 	 	12.5	%	 	 	(1,512	)	 	 	-9.1	%	 	 	24,157	 	 	 	43.1	%	 	 	(2,147	)	 	 	-3.5	%	 	 	-	 	 	 	0.0	%
	Total 5500000 · Valet
    Salary & Wages	 	 	22,010	 	 	 	10.8	%	 	 	23,522	 	 	 	12.5	%	 	 	(1,512	)	 	 	-9.1	%	 	 	24,157	 	 	 	43.1	%	 	 	(2,147	)	 	 	-3.5	%	 	 	-	 	 	 	0.0	%
	5500050 · Misc Taxes
    & Benefits	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5551 ·
    Misc Payroll Taxes	 	 	4,222	 	 	 	2.1	%	 	 	3,815	 	 	 	2.0	%	 	 	406	 	 	 	2.4	%	 	 	3,533	 	 	 	6.3	%	 	 	688	 	 	 	1.1	%	 	 	-	 	 	 	0.0	%
	5552 ·
    Misc Workers Comp	 	 	-	 	 	 	0.0	%	 	 	192	 	 	 	0.1	%	 	 	(192	)	 	 	-1.2	%	 	 	282	 	 	 	0.5	%	 	 	(282	)	 	 	-0.5	%	 	 	-	 	 	 	0.0	%
	5553 ·
    Misc Employ Benefits	 	 	(84	)	 	 	0.0	%	 	 	1,348	 	 	 	0.7	%	 	 	(1,432	)	 	 	-8.6	%	 	 	1,452	 	 	 	2.6	%	 	 	(1,536	)	 	 	-2.5	%	 	 	-	 	 	 	0.0	%
	5555 ·
    Misc PTO	 	 	269	 	 	 	0.1	%	 	 	656	 	 	 	0.3	%	 	 	(387	)	 	 	-2.3	%	 	 	859	 	 	 	1.5	%	 	 	(589	)	 	 	-1.0	%	 	 	-	 	 	 	0.0	%
	5556
    · Misc Employ Meals	 	 	-	 	 	 	0.0	%	 	 	483	 	 	 	0.3	%	 	 	(483	)	 	 	-2.9	%	 	 	684	 	 	 	1.2	%	 	 	(684	)	 	 	-1.1	%	 	 	-	 	 	 	0.0	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total 5999050
    · Valet Taxes & Benefits	 	 	4,407	 	 	 	2.2	%	 	 	6,494	 	 	 	3.5	%	 	 	(2,087	)	 	 	-12.6	%	 	 	6,810	 	 	 	12.2	%	 	 	(2,403	)	 	 	-4.0	%	 	 	-	 	 	 	0.0	%
	Total 5000
    · Payroll & Benefits	 	 	26,417	 	 	 	12.9	%	 	 	30,015	 	 	 	16.0	%	 	 	(3,599	)	 	 	-21.7	%	 	 	30,967	 	 	 	55.3	%	 	 	(4,550	)	 	 	-7.5	%	 	 	-	 	 	 	0.0	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total
    Expense	 	 	26,417	 	 	 	12.9	%	 	 	30,015	 	 	 	16.0	%	 	 	(3,599	)	 	 	-21.7	%	 	 	30,967	 	 	 	55.3	%	 	 	(4,550	)	 	 	-7.5	%	 	 	-	 	 	 	0.0	%
	Net Income	 	 	155,126	 	 	 	75.9	%	 	 	128,438	 	 	 	68.4	%	 	 	26,688	 	 	 	160.6	%	 	 	82,411	 	 	 	147.2	%	 	 	72,715	 	 	 	120.1	%	 	 	529,183	 	 	 	75.0	%

 

 

 

	 	Page 11 of 23	109.1. Ex 18(a)- 1st Part - L'Auberge_Resort March 13 Issue

 

 

 

    	 

    	 

     

L'Auberge de Sedona, LLC.

Miscellaneous Department

January through March 2013

 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	TOTAL	 
	 	 	Jan 13	 	 	% of Income	 	 	Feb 13	 	 	% of Income	 	 	Mar 13	 	 	% of Income	 	 	Jan - Mar 13	 	 	% of Income	 
	Ordinary Income/Expense	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Income	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4500 · Miscellaneous Revenue	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4501 · Laundry Charges	 	 	112.25	 	 	 	0.23	%	 	 	171.50	 	 	 	0.28	%	 	 	376.40	 	 	 	0.4	%	 	 	660.15	 	 	 	0.32	%
	4503 · Ticket Sales Tour	 	 	-300.00	 	 	 	-0.62	%	 	 	300.00	 	 	 	0.49	%	 	 	125.00	 	 	 	0.13	%	 	 	125.00	 	 	 	0.06	%
	4505 · Resort Fee	 	 	24,690.91	 	 	 	50.6	%	 	 	30,303.65	 	 	 	49.04	%	 	 	54,515.01	 	 	 	58.13	%	 	 	109,509.57	 	 	 	53.58	%
	4507 · House Grats	 	 	0.00	 	 	 	0.0	%	 	 	0.00	 	 	 	0.0	%	 	 	876.73	 	 	 	0.94	%	 	 	876.73	 	 	 	0.43	%
	4508 · Nightly Parking	 	 	13,585.00	 	 	 	27.84	%	 	 	18,720.00	 	 	 	30.29	%	 	 	27,280.00	 	 	 	29.09	%	 	 	59,585.00	 	 	 	29.15	%
	4510 · Pet Fees	 	 	1,630.00	 	 	 	3.34	%	 	 	2,193.42	 	 	 	3.55	%	 	 	2,450.00	 	 	 	2.61	%	 	 	6,273.42	 	 	 	3.07	%
	4511 · Package Charges	 	 	8,268.00	 	 	 	16.94	%	 	 	9,996.67	 	 	 	16.18	%	 	 	6,866.13	 	 	 	7.32	%	 	 	25,130.80	 	 	 	12.3	%
	4520 · Other Miscellaneous	 	 	814.97	 	 	 	1.67	%	 	 	114.17	 	 	 	0.19	%	 	 	1,290.40	 	 	 	1.38	%	 	 	2,219.54	 	 	 	1.09	%
	Total 4500 · Miscellaneous Revenue	 	 	48,801.13	 	 	 	100.0	%	 	 	61,799.41	 	 	 	100.0	%	 	 	93,779.67	 	 	 	100.0	%	 	 	204,380.21	 	 	 	100.0	%
	Total Income	 	 	48,801.13	 	 	 	100.0	%	 	 	61,799.41	 	 	 	100.0	%	 	 	93,779.67	 	 	 	100.0	%	 	 	204,380.21	 	 	 	100.0	%
	Cost of Goods Sold	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	6400 · Cost of Telephone	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	6401 · Local Phone Costs	 	 	1,256.52	 	 	 	2.58	%	 	 	2,260.64	 	 	 	3.66	%	 	 	2,803.33	 	 	 	2.99	%	 	 	6,320.49	 	 	 	3.09	%
	6402 · Long Distance Phone Costs	 	 	25.26	 	 	 	0.05	%	 	 	25.26	 	 	 	0.04	%	 	 	0.00	 	 	 	0.0	%	 	 	50.52	 	 	 	0.03	%
	Total 6400 · Cost of Telephone	 	 	1,281.78	 	 	 	2.63	%	 	 	2,285.90	 	 	 	3.7	%	 	 	2,803.33	 	 	 	2.99	%	 	 	6,371.01	 	 	 	3.12	%
	6500 · Cost of Other Revenue	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	6506 · Cost of Guest Valet	 	 	23.75	 	 	 	0.05	%	 	 	123.80	 	 	 	0.2	%	 	 	296.45	 	 	 	0.32	%	 	 	444.00	 	 	 	0.22	%
	6516 · Cost of Guest Meals - Reception	 	 	2,508.00	 	 	 	5.14	%	 	 	0.00	 	 	 	0.0	%	 	 	4,388.00	 	 	 	4.68	%	 	 	6,896.00	 	 	 	3.37	%
	6517 · Romance Boutique Package	 	 	0.00	 	 	 	0.0	%	 	 	-264.80	 	 	 	-0.43	%	 	 	-171.30	 	 	 	-0.18	%	 	 	-436.10	 	 	 	-0.21	%
	6520 · Cost of Misc. Revenue	 	 	0.00	 	 	 	0.0	%	 	 	270.00	 	 	 	0.44	%	 	 	-302.37	 	 	 	-0.32	%	 	 	-32.37	 	 	 	-0.02	%
	6553 · Cost of Resort Fee-StarGazer	 	 	1,675.00	 	 	 	3.43	%	 	 	1,650.00	 	 	 	2.67	%	 	 	1,770.00	 	 	 	1.89	%	 	 	5,095.00	 	 	 	2.49	%
	6556 · Cost of Resort Fee - Photograph	 	 	600.00	 	 	 	1.23	%	 	 	625.00	 	 	 	1.01	%	 	 	500.00	 	 	 	0.53	%	 	 	1,725.00	 	 	 	0.84	%
	6557 · Cost of Resort Fee-Story Teller	 	 	250.00	 	 	 	0.51	%	 	 	200.00	 	 	 	0.32	%	 	 	350.00	 	 	 	0.37	%	 	 	800.00	 	 	 	0.39	%
	6558 · Cost of Resort Fee-Guided Image	 	 	600.00	 	 	 	1.23	%	 	 	600.00	 	 	 	0.97	%	 	 	675.00	 	 	 	0.72	%	 	 	1,875.00	 	 	 	0.92	%
	6562 · Cost of Resort Fee-Yoga Instr	 	 	100.00	 	 	 	0.21	%	 	 	0.00	 	 	 	0.0	%	 	 	0.00	 	 	 	0.0	%	 	 	100.00	 	 	 	0.05	%
	Total 6500 · Cost of Other Revenue	 	 	5,756.75	 	 	 	11.8	%	 	 	3,204.00	 	 	 	5.19	%	 	 	7,505.78	 	 	 	8.0	%	 	 	16,466.53	 	 	 	8.06	%
	Total COGS	 	 	7,038.53	 	 	 	14.42	%	 	 	5,489.90	 	 	 	8.88	%	 	 	10,309.11	 	 	 	10.99	%	 	 	22,837.54	 	 	 	11.17	%
	Gross Profit	 	 	41,762.60	 	 	 	85.58	%	 	 	56,309.51	 	 	 	91.12	%	 	 	83,470.56	 	 	 	89.01	%	 	 	181,542.67	 	 	 	88.83	%
	Expense	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5000 · Payroll & Benefits	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5500000 · Misc Salaries & Wages	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5500050 · Misc Taxes & Benefits	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5551 · Misc Payroll Taxes	 	 	1,265.47	 	 	 	2.59	%	 	 	980.62	 	 	 	1.59	%	 	 	1,975.49	 	 	 	2.11	%	 	 	4,221.58	 	 	 	2.07	%
	5553 · Misc Employ Benefits	 	 	241.15	 	 	 	0.49	%	 	 	-56.28	 	 	 	-0.09	%	 	 	-269.04	 	 	 	-0.29	%	 	 	-84.17	 	 	 	-0.04	%
	5555 · Misc PTO	 	 	0.00	 	 	 	0.0	%	 	 	170.96	 	 	 	0.28	%	 	 	98.45	 	 	 	0.11	%	 	 	269.41	 	 	 	0.13	%
	Total 5500050 · Misc Taxes & Benefits	 	 	1,506.62	 	 	 	3.09	%	 	 	1,095.30	 	 	 	1.77	%	 	 	1,804.90	 	 	 	1.93	%	 	 	4,406.82	 	 	 	2.16	%
	5500610 · Valet	 	 	6,684.01	 	 	 	13.7	%	 	 	8,818.19	 	 	 	14.27	%	 	 	6,507.63	 	 	 	6.94	%	 	 	22,009.83	 	 	 	10.77	%
	Total 5500000 · Misc Salaries & Wages	 	 	8,190.63	 	 	 	16.78	%	 	 	9,913.49	 	 	 	16.04	%	 	 	8,312.53	 	 	 	8.86	%	 	 	26,416.65	 	 	 	12.93	%
	Total 5000 · Payroll & Benefits	 	 	8,190.63	 	 	 	16.78	%	 	 	9,913.49	 	 	 	16.04	%	 	 	8,312.53	 	 	 	8.86	%	 	 	26,416.65	 	 	 	12.93	%
	Total Expense	 	 	8,190.63	 	 	 	16.78	%	 	 	9,913.49	 	 	 	16.04	%	 	 	8,312.53	 	 	 	8.86	%	 	 	26,416.65	 	 	 	12.93	%
	Net Ordinary Income	 	 	33,571.97	 	 	 	68.79	%	 	 	46,396.02	 	 	 	75.08	%	 	 	75,158.03	 	 	 	80.14	%	 	 	155,126.02	 	 	 	75.9	%
	Net Income	 	 	33,571.97	 	 	 	68.79	%	 	 	46,396.02	 	 	 	75.08	%	 	 	75,158.03	 	 	 	80.14	%	 	 	155,126.02	 	 	 	75.9	%

 

 

	 	Page 12 of 23	109.1. Ex 18(a)- 1st Part - L'Auberge_Resort March 13 Issue Misc

 

 

 

    	 

    	 

     

L'Auberge de Sedona, LLC.

Management Fee Expenses

January through March 2013

 

	
         

         
	 	Type	 	Date	 	Num	 	Name	 	Memo	 	Amount	 
	9500 · Management Fees	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Bill	 	01/04/2013	 	Jan Man Fee	 	Spector Offices/Management Account	 	 	 	8,929.83	 
	 	 	Bill	 	02/01/2013	 	Feb Man Fee	 	Spector Offices/Management Account	 	Pre Paid Mgmt Fee	 	15,000.00	 
	 	 	Credit	 	02/28/2013	 	Feb Mgmt Fee	 	Spector Offices/Management Account	 	Feb Management Fee Adjust to Actual of $11,576.68	 	-3,423.32	 
	 	 	Bill	 	03/01/2013	 	Managment Fee	 	Spector Offices/Management Account	 	 	 	20,000.00	 
	 	 	General Journal	 	03/31/2013	 	Mgmt Fee	 	 	 	March Mgmt Fee 1.5% on $1,459,819.56 = $21,897.29 less $20,000 advance	 	1,897.29	 
	Total 9500 · Management Fees	 	 	 	 	 	 	 	 	 	 	 	42,403.80	 
	TOTAL	 	 	 	 	 	 	 	 	 	 	 	42,403.80	 

 

 

	 	Page 13 of 23	109.1. Ex 18(a)- 1st Part - L'Auberge_Resort March 13 Issue / Mgmt Fees

 

 

 

    	 

    	 

     

 

 

L'Auberge de Sedona Resort

Administrative and General Department

Actual vs. Budget and Prior Year

March 2013

 

	 	 	 	 
	 	 	Current Month	 
	 	 	Actual	 	 	% to

        Revenue
	 	 	Budget	 	 	% to

        Revenue
	 	 	Variance	 	 	% to

        Revenue
	 	 	Prior Year	 	 	% to

        Revenue
	 	 	Variance	 	 	% to

        Revenue
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Expense	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5000 · Payroll & Benefits	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5686000 · G & A Salaries & Wages	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5684000 · Controller	 	 	(4,913	)	 	 	-0.3	%	 	 	-	 	 	 	0.0	%	 	 	(4,913	)	 	 	-2.9	%	 	 	4,510	 	 	 	0.4	%	 	 	(9,423	)	 	 	-4.8	%
	5684130 · Coordinators	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	5685600 · Security	 	 	3,489	 	 	 	0.2	%	 	 	-	 	 	 	0.0	%	 	 	3,489	 	 	 	2.1	%	 	 	5,904	 	 	 	0.5	%	 	 	(2,416	)	 	 	-1.2	%
	5686130 · G & A
    Accounting  Coordinator	 	 	5,464	 	 	 	0.4	%	 	 	-	 	 	 	0.0	%	 	 	5,464	 	 	 	3.2	%	 	 	5,762	 	 	 	0.5	%	 	 	(297	)	 	 	-0.2	%
	5686150 · G & A
    Supervisor	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	(43	)	 	 	0.0	%	 	 	43	 	 	 	0.0	%
	5686170 · G & A
    Asst. Controller	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	3,594	 	 	 	0.3	%	 	 	(3,594	)	 	 	-1.8	%
	5686180 · G & A
    Human Resource Director	 	 	3,495	 	 	 	0.2	%	 	 	-	 	 	 	0.0	%	 	 	3,495	 	 	 	2.1	%	 	 	3,393	 	 	 	0.3	%	 	 	102	 	 	 	0.1	%
	5686190 · G & A
    General Manager	 	 	13,547	 	 	 	0.9	%	 	 	-	 	 	 	0.0	%	 	 	13,547	 	 	 	8.0	%	 	 	11,497	 	 	 	0.9	%	 	 	2,050	 	 	 	1.0	%
	5686199 · G & A
    Shared Services	 	 	10,878	 	 	 	0.7	%	 	 	-	 	 	 	0.0	%	 	 	10,878	 	 	 	6.4	%	 	 	1,823	 	 	 	0.1	%	 	 	9,055	 	 	 	4.6	%
	5686400 · HR Coordinator	 	 	1,811	 	 	 	0.1	%	 	 	-	 	 	 	0.0	%	 	 	1,811	 	 	 	1.1	%	 	 	2,568	 	 	 	0.2	%	 	 	(757	)	 	 	-0.4	%
	5686430 · HR EDR Cook	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	5686430 · HR Specialist	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	1,369	 	 	 	0.1	%	 	 	(1,369	)	 	 	-0.7	%
	5686999
    · G&A Other Pay	 	 	-	 	 	 	0.0	%	 	 	38,172	 	 	 	3.0	%	 	 	(38,172	)	 	 	-22.5	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	Total 5686000 · G & A Salaries &
    Wages	 	 	33,771	 	 	 	2.3	%	 	 	38,172	 	 	 	3.0	%	 	 	(4,401	)	 	 	-2.6	%	 	 	40,377	 	 	 	3.2	%	 	 	(6,606	)	 	 	-3.4	%
	5686050 · G & A Taxes and Benefits	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5651 · G & A Payroll
    Taxes	 	 	867	 	 	 	0.1	%	 	 	3,514	 	 	 	0.3	%	 	 	(2,648	)	 	 	-1.6	%	 	 	3,412	 	 	 	0.3	%	 	 	(2,545	)	 	 	-1.3	%
	5652 · G & A Workmens
    Compensation	 	 	1,442	 	 	 	0.1	%	 	 	173	 	 	 	0.0	%	 	 	1,269	 	 	 	0.7	%	 	 	168	 	 	 	0.0	%	 	 	1,274	 	 	 	0.6	%
	5653 · G & A Employee
    Benefits	 	 	2,214	 	 	 	0.2	%	 	 	5,555	 	 	 	0.4	%	 	 	(3,342	)	 	 	-2.0	%	 	 	5,394	 	 	 	0.4	%	 	 	(3,180	)	 	 	-1.6	%
	5655 · G & A PTO	 	 	4,279	 	 	 	0.3	%	 	 	5,677	 	 	 	0.4	%	 	 	(1,398	)	 	 	-0.8	%	 	 	5,512	 	 	 	0.4	%	 	 	(1,233	)	 	 	-0.6	%
	5656 · G & A Empoy
    Meals	 	 	650	 	 	 	0.0	%	 	 	715	 	 	 	0.1	%	 	 	(64	)	 	 	0.0	%	 	 	694	 	 	 	0.1	%	 	 	(43	)	 	 	0.0	%
	5699
    · G & A Shared Services Fringes	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	Total 5686050 · G
    & A Taxes and Benefits	 	 	9,452	 	 	 	0.6	%	 	 	15,635	 	 	 	1.2	%	 	 	(6,182	)	 	 	-3.6	%	 	 	15,179	 	 	 	1.2	%	 	 	(5,727	)	 	 	-2.9	%
	Total 5000 · Payroll & Benefits	 	 	43,223	 	 	 	3.0	%	 	 	53,807	 	 	 	4.2	%	 	 	(10,583	)	 	 	-6.2	%	 	 	55,556	 	 	 	4.4	%	 	 	(12,333	)	 	 	-6.3	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	8600 · General & Administrative	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	8601 · Workers' Comp
    Adjustments	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8602 · Sales Tax (Credit)
    Penalties	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8604 · Sales Tax Expense	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8605 · Legal Fees	 	 	-	 	 	 	0.0	%	 	 	(104	)	 	 	0.0	%	 	 	104	 	 	 	0.1	%	 	 	(101	)	 	 	0.0	%	 	 	101	 	 	 	0.1	%
	8610 · IT Support	 	 	3,199	 	 	 	0.2	%	 	 	-	 	 	 	0.0	%	 	 	3,199	 	 	 	1.9	%	 	 	4,952	 	 	 	0.4	%	 	 	(1,753	)	 	 	-0.9	%
	8630 · Outside Laundry	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8635 · Uniforms	 	 	576	 	 	 	0.0	%	 	 	607	 	 	 	0.0	%	 	 	(31	)	 	 	0.0	%	 	 	589	 	 	 	0.0	%	 	 	(14	)	 	 	0.0	%
	8650 · Maint/Service Contract	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8651 · Computer Maint.
    & Support	 	 	55	 	 	 	0.0	%	 	 	5,471	 	 	 	0.4	%	 	 	(5,415	)	 	 	-3.2	%	 	 	360	 	 	 	0.0	%	 	 	(304	)	 	 	-0.2	%
	8660 · Charitable Contributions	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8665 · Affordable Housing
    Subsidy	 	 	(825	)	 	 	-0.1	%	 	 	(2,575	)	 	 	-0.2	%	 	 	1,750	 	 	 	1.0	%	 	 	(2,500	)	 	 	-0.2	%	 	 	1,675	 	 	 	0.9	%
	8670 · Armored Car
    Service	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8672 · Accounting Fees	 	 	-	 	 	 	0.0	%	 	 	1,082	 	 	 	0.1	%	 	 	(1,082	)	 	 	-0.6	%	 	 	1,050	 	 	 	0.1	%	 	 	(1,050	)	 	 	-0.5	%
	8673 · Gift Certificates	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	475	 	 	 	0.0	%	 	 	(475	)	 	 	-0.2	%
	8674 · Guest Lost/Damaged
    Property	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8675 · Bad Debt Expense	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8676 · Preopening expense	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8678 · Express Mail	 	 	-	 	 	 	0.0	%	 	 	432	 	 	 	0.0	%	 	 	(432	)	 	 	-0.3	%	 	 	420	 	 	 	0.0	%	 	 	(420	)	 	 	-0.2	%
	8679 · Payroll Processing
    Fees	 	 	2,480	 	 	 	0.2	%	 	 	4,856	 	 	 	0.4	%	 	 	(2,376	)	 	 	-1.4	%	 	 	4,714	 	 	 	0.4	%	 	 	(2,234	)	 	 	-1.1	%
	8680 · Postage	 	 	-	 	 	 	0.0	%	 	 	336	 	 	 	0.0	%	 	 	(336	)	 	 	-0.2	%	 	 	327	 	 	 	0.0	%	 	 	(327	)	 	 	-0.2	%
	8681 · Dues & Subscriptions	 	 	250	 	 	 	0.0	%	 	 	268	 	 	 	0.0	%	 	 	(18	)	 	 	0.0	%	 	 	260	 	 	 	0.0	%	 	 	(10	)	 	 	0.0	%
	8682 · Printing	 	 	-	 	 	 	0.0	%	 	 	(233	)	 	 	0.0	%	 	 	233	 	 	 	0.1	%	 	 	(226	)	 	 	0.0	%	 	 	226	 	 	 	0.1	%
	8683 · Credit Card
    Fees	 	 	27,545	 	 	 	1.9	%	 	 	31,717	 	 	 	2.5	%	 	 	(4,172	)	 	 	-2.5	%	 	 	30,793	 	 	 	2.4	%	 	 	(3,248	)	 	 	-1.7	%
	8684 · Bank Fees	 	 	1,100	 	 	 	0.1	%	 	 	48	 	 	 	0.0	%	 	 	1,052	 	 	 	0.6	%	 	 	47	 	 	 	0.0	%	 	 	1,053	 	 	 	0.5	%
	8685 · Telephone Cell
    & Radio	 	 	200	 	 	 	0.0	%	 	 	1,269	 	 	 	0.1	%	 	 	(1,069	)	 	 	-0.6	%	 	 	1,232	 	 	 	0.1	%	 	 	(1,032	)	 	 	-0.5	%
	8686 · Security	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8687 · Employee Recruitment	 	 	2,170	 	 	 	0.1	%	 	 	4,084	 	 	 	0.3	%	 	 	(1,914	)	 	 	-1.1	%	 	 	3,965	 	 	 	0.3	%	 	 	(1,795	)	 	 	-0.9	%
	8688 · Employee Relations
    & Training	 	 	1,519	 	 	 	0.1	%	 	 	2,693	 	 	 	0.2	%	 	 	(1,174	)	 	 	-0.7	%	 	 	2,614	 	 	 	0.2	%	 	 	(1,095	)	 	 	-0.6	%
	8689 · Miscellaneous
    Expenses	 	 	4,716	 	 	 	0.3	%	 	 	-	 	 	 	0.0	%	 	 	4,716	 	 	 	2.8	%	 	 	162	 	 	 	0.0	%	 	 	4,554	 	 	 	2.3	%
	8690 · Office Supplies	 	 	459	 	 	 	0.0	%	 	 	1,700	 	 	 	0.1	%	 	 	(1,241	)	 	 	-0.7	%	 	 	1,651	 	 	 	0.1	%	 	 	(1,192	)	 	 	-0.6	%
	8691 · Employee Relocation	 	 	-	 	 	 	0.0	%	 	 	4,068	 	 	 	0.3	%	 	 	(4,068	)	 	 	-2.4	%	 	 	3,950	 	 	 	0.3	%	 	 	(3,950	)	 	 	-2.0	%
	8692 · Cash over/short	 	 	(35	)	 	 	0.0	%	 	 	203	 	 	 	0.0	%	 	 	(238	)	 	 	-0.1	%	 	 	197	 	 	 	0.0	%	 	 	(232	)	 	 	-0.1	%
	8693 · Licenses &
    Permits	 	 	275	 	 	 	0.0	%	 	 	283	 	 	 	0.0	%	 	 	(8	)	 	 	0.0	%	 	 	275	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8694 · Student Housing	 	 	2,502	 	 	 	0.2	%	 	 	1,563	 	 	 	0.1	%	 	 	939	 	 	 	0.6	%	 	 	1,517	 	 	 	0.1	%	 	 	985	 	 	 	0.5	%
	8695 · Equipment	 	 	878	 	 	 	0.1	%	 	 	2,344	 	 	 	0.2	%	 	 	(1,467	)	 	 	-0.9	%	 	 	2,276	 	 	 	0.2	%	 	 	(1,398	)	 	 	-0.7	%
	8696 · Business Meetings..	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8697 · Business Meals	 	 	558	 	 	 	0.0	%	 	 	1,209	 	 	 	0.1	%	 	 	(651	)	 	 	-0.4	%	 	 	1,173	 	 	 	0.1	%	 	 	(615	)	 	 	-0.3	%
	8698 · Consultants	 	 	2,831	 	 	 	0.2	%	 	 	2,537	 	 	 	0.2	%	 	 	294	 	 	 	0.2	%	 	 	2,463	 	 	 	0.2	%	 	 	368	 	 	 	0.2	%
	8600 · General &
    Administrative - Other	 	 	-	 	 	 	0.0	%	 	 	656	 	 	 	0.1	%	 	 	(656	)	 	 	-0.4	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8699 · PY Consultant
    Reconciliation	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	9900
    · Intercompany balance write offs	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	Total 8600 · General
    & Administrative	 	 	50,453	 	 	 	3.5	%	 	 	64,514	 	 	 	5.0	%	 	 	(14,061	)	 	 	-8.3	%	 	 	62,635	 	 	 	5.0	%	 	 	(12,182	)	 	 	-6.2	%
	Total Expense	 	 	93,677	 	 	 	6.4	%	 	 	118,321	 	 	 	9.2	%	 	 	(24,644	)	 	 	-14.5	%	 	 	118,191	 	 	 	9.4	%	 	 	(24,514	)	 	 	-12.5	%
	Net Income	 	 	(93,677	)	 	 	-6.4	%	 	 	(118,321	)	 	 	-9.2	%	 	 	24,644	 	 	 	14.5	%	 	 	(118,191	)	 	 	-9.4	%	 	 	24,514	 	 	 	12.5	%

 

	 	 	 	 	 	Budget	 
	 	 	Year to Date	 	 	Full Year	 
	 	 	Actual	 	 	% to

        Revenue
	 	 	Budget	 	 	% to

        Revenue
	 	 	Variance	 	 	% to

        Revenue
	 	 	Prior Year	 	 	% to

        Revenue
	 	 	Variance	 	 	% to

        Revenue
	 	 	Amount	 	 	% to

        Revenue
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Expense	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5000 · Payroll & Benefits	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5686000 · G & A Salaries & Wages	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5684000 · Controller	 	 	(3,573	)	 	 	-0.1	%	 	 	-	 	 	 	0.0	%	 	 	(3,573	)	 	 	-2.4	%	 	 	14,706	 	 	 	0.5	%	 	 	(18,279	)	 	 	-17.9	%	 	 	79,237	 	 	 	0.5	%
	5684130 · Coordinators	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	5685600 · Security	 	 	10,214	 	 	 	0.4	%	 	 	-	 	 	 	0.0	%	 	 	10,214	 	 	 	6.9	%	 	 	17,539	 	 	 	0.6	%	 	 	(7,324	)	 	 	-7.2	%	 	 	75,335	 	 	 	0.5	%
	5686130 · G & A
    Accounting  Coordinator	 	 	16,817	 	 	 	0.6	%	 	 	-	 	 	 	0.0	%	 	 	16,817	 	 	 	11.4	%	 	 	17,109	 	 	 	0.6	%	 	 	(293	)	 	 	-0.3	%	 	 	66,287	 	 	 	0.4	%
	5686150 · G & A
    Supervisor	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	(43	)	 	 	0.0	%	 	 	43	 	 	 	0.0	%	 	 	(177	)	 	 	0.0	%
	5686170 · G & A
    Asst. Controller	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	12,120	 	 	 	0.4	%	 	 	(12,120	)	 	 	-11.8	%	 	 	49,881	 	 	 	0.3	%
	5686180 · G & A
    Human Resource Director	 	 	18,591	 	 	 	0.7	%	 	 	-	 	 	 	0.0	%	 	 	18,591	 	 	 	12.6	%	 	 	10,410	 	 	 	0.4	%	 	 	8,181	 	 	 	8.0	%	 	 	49,518	 	 	 	0.3	%
	5686190 · G & A
    General Manager	 	 	36,017	 	 	 	1.3	%	 	 	-	 	 	 	0.0	%	 	 	36,017	 	 	 	24.5	%	 	 	33,379	 	 	 	1.2	%	 	 	2,638	 	 	 	2.6	%	 	 	141,165	 	 	 	0.9	%
	5686199 · G & A
    Shared Services	 	 	32,634	 	 	 	1.2	%	 	 	-	 	 	 	0.0	%	 	 	32,634	 	 	 	22.2	%	 	 	3,038	 	 	 	0.1	%	 	 	29,596	 	 	 	28.9	%	 	 	16,497	 	 	 	0.1	%
	5686400 · HR Coordinator	 	 	4,747	 	 	 	0.2	%	 	 	-	 	 	 	0.0	%	 	 	4,747	 	 	 	3.2	%	 	 	4,381	 	 	 	0.2	%	 	 	366	 	 	 	0.4	%	 	 	12,844	 	 	 	0.1	%
	5686430 · HR EDR Cook	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	5686430 · HR Specialist	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	6,139	 	 	 	0.2	%	 	 	(6,139	)	 	 	-6.0	%	 	 	19,378	 	 	 	0.1	%
	5686999
    · G&A Other Pay	 	 	-	 	 	 	0.0	%	 	 	115,214	 	 	 	4.3	%	 	 	(115,214	)	 	 	-78.3	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	Total 5686000 · G & A Salaries &
    Wages	 	 	115,448	 	 	 	4.1	%	 	 	115,214	 	 	 	4.3	%	 	 	234	 	 	 	0.2	%	 	 	118,779	 	 	 	4.4	%	 	 	(3,330	)	 	 	-3.3	%	 	 	509,965	 	 	 	3.2	%
	5686050 · G & A Taxes and Benefits	 	 	 	 	 	 	 	 	 	 	 	 	 	 	492357.0	%	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5651 · G & A Payroll
    Taxes	 	 	6,519	 	 	 	0.2	%	 	 	10,984	 	 	 	0.4	%	 	 	(4,465	)	 	 	-3.0	%	 	 	11,626	 	 	 	0.4	%	 	 	(5,107	)	 	 	-5.0	%	 	 	41,137	 	 	 	0.3	%
	5652 · G & A Workmens
    Compensation	 	 	2,004	 	 	 	0.1	%	 	 	636	 	 	 	0.0	%	 	 	1,368	 	 	 	0.9	%	 	 	546	 	 	 	0.0	%	 	 	1,457	 	 	 	1.4	%	 	 	2,792	 	 	 	0.0	%
	5653 · G & A Employee
    Benefits	 	 	2,612	 	 	 	0.1	%	 	 	6,989	 	 	 	0.3	%	 	 	(4,377	)	 	 	-3.0	%	 	 	12,611	 	 	 	0.5	%	 	 	(9,999	)	 	 	-9.8	%	 	 	47,793	 	 	 	0.3	%
	5655 · G & A PTO	 	 	10,114	 	 	 	0.4	%	 	 	11,148	 	 	 	0.4	%	 	 	(1,034	)	 	 	-0.7	%	 	 	11,021	 	 	 	0.4	%	 	 	(907	)	 	 	-0.9	%	 	 	35,235	 	 	 	0.2	%
	5656 · G & A Empoy
    Meals	 	 	1,919	 	 	 	0.1	%	 	 	2,121	 	 	 	0.1	%	 	 	(202	)	 	 	-0.1	%	 	 	2,134	 	 	 	0.1	%	 	 	(215	)	 	 	-0.2	%	 	 	8,871	 	 	 	0.1	%
	5699
    · G & A Shared Services Fringes	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	Total 5686050 · G
    & A Taxes and Benefits	 	 	23,168	 	 	 	0.8	%	 	 	31,878	 	 	 	1.2	%	 	 	(8,710	)	 	 	-5.9	%	 	 	37,938	 	 	 	1.4	%	 	 	(14,770	)	 	 	-14.4	%	 	 	135,828	 	 	 	0.9	%
	Total 5000 · Payroll & Benefits	 	 	138,616	 	 	 	4.9	%	 	 	147,093	 	 	 	5.5	%	 	 	(8,477	)	 	 	-5.8	%	 	 	156,716	 	 	 	5.8	%	 	 	(18,100	)	 	 	-17.7	%	 	 	645,794	 	 	 	4.1	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	8600 · General & Administrative	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	8601 · Workers' Comp
    Adjustments	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8602 · Sales Tax (Credit)
    Penalties	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8604 · Sales Tax Expense	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8605 · Legal Fees	 	 	-	 	 	 	0.0	%	 	 	1,749	 	 	 	0.1	%	 	 	(1,749	)	 	 	-1.2	%	 	 	1,698	 	 	 	0.1	%	 	 	(1,698	)	 	 	-1.7	%	 	 	4,400	 	 	 	0.0	%
	8610 · IT Support	 	 	9,596	 	 	 	0.3	%	 	 	-	 	 	 	0.0	%	 	 	9,596	 	 	 	6.5	%	 	 	13,462	 	 	 	0.5	%	 	 	(3,866	)	 	 	-3.8	%	 	 	46,027	 	 	 	0.3	%
	8630 · Outside Laundry	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8635 · Uniforms	 	 	1,522	 	 	 	0.1	%	 	 	1,475	 	 	 	0.1	%	 	 	46	 	 	 	0.0	%	 	 	1,281	 	 	 	0.0	%	 	 	241	 	 	 	0.2	%	 	 	6,388	 	 	 	0.0	%
	8650 · Maint/Service Contract	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8651 · Computer Maint.
    & Support	 	 	913	 	 	 	0.0	%	 	 	13,573	 	 	 	0.5	%	 	 	(12,660	)	 	 	-8.6	%	 	 	1,320	 	 	 	0.0	%	 	 	(407	)	 	 	-0.4	%	 	 	6,329	 	 	 	0.0	%
	8660 · Charitable Contributions	 	 	100	 	 	 	0.0	%	 	 	100	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	100	 	 	 	0.1	%	 	 	1,531	 	 	 	0.0	%
	8665 · Affordable Housing
    Subsidy	 	 	(1,617	)	 	 	-0.1	%	 	 	(5,340	)	 	 	-0.2	%	 	 	3,722	 	 	 	2.5	%	 	 	(7,150	)	 	 	-0.3	%	 	 	5,533	 	 	 	5.4	%	 	 	(31,999	)	 	 	-0.2	%
	8670 · Armored Car
    Service	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	121	 	 	 	0.0	%	 	 	(121	)	 	 	-0.1	%	 	 	121	 	 	 	0.0	%
	8672 · Accounting Fees	 	 	-	 	 	 	0.0	%	 	 	3,028	 	 	 	0.1	%	 	 	(3,028	)	 	 	-2.1	%	 	 	4,735	 	 	 	0.2	%	 	 	(4,735	)	 	 	-4.6	%	 	 	18,595	 	 	 	0.1	%
	8673 · Gift Certificates	 	 	950	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	950	 	 	 	0.6	%	 	 	1,425	 	 	 	0.1	%	 	 	(475	)	 	 	-0.5	%	 	 	5,883	 	 	 	0.0	%
	8674 · Guest Lost/Damaged
    Property	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8675 · Bad Debt Expense	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8676 · Preopening expense	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8678 · Express Mail	 	 	1,464	 	 	 	0.1	%	 	 	2,230	 	 	 	0.1	%	 	 	(767	)	 	 	-0.5	%	 	 	1,068	 	 	 	0.0	%	 	 	396	 	 	 	0.4	%	 	 	3,436	 	 	 	0.0	%
	8679 · Payroll Processing
    Fees	 	 	10,801	 	 	 	0.4	%	 	 	14,021	 	 	 	0.5	%	 	 	(3,220	)	 	 	-2.2	%	 	 	12,413	 	 	 	0.5	%	 	 	(1,612	)	 	 	-1.6	%	 	 	36,044	 	 	 	0.2	%
	8680 · Postage	 	 	334	 	 	 	0.0	%	 	 	534	 	 	 	0.0	%	 	 	(201	)	 	 	-0.1	%	 	 	767	 	 	 	0.0	%	 	 	(433	)	 	 	-0.4	%	 	 	1,525	 	 	 	0.0	%
	8681 · Dues & Subscriptions	 	 	759	 	 	 	0.0	%	 	 	2,103	 	 	 	0.1	%	 	 	(1,345	)	 	 	-0.9	%	 	 	1,975	 	 	 	0.1	%	 	 	(1,217	)	 	 	-1.2	%	 	 	2,714	 	 	 	0.0	%
	8682 · Printing	 	 	406	 	 	 	0.0	%	 	 	163	 	 	 	0.0	%	 	 	243	 	 	 	0.2	%	 	 	(130	)	 	 	0.0	%	 	 	535	 	 	 	0.5	%	 	 	275	 	 	 	0.0	%
	8683 · Credit Card
    Fees	 	 	92,303	 	 	 	3.3	%	 	 	101,080	 	 	 	3.8	%	 	 	(8,777	)	 	 	-6.0	%	 	 	92,838	 	 	 	3.4	%	 	 	(535	)	 	 	-0.5	%	 	 	475,751	 	 	 	3.0	%
	8684 · Bank Fees	 	 	2,945	 	 	 	0.1	%	 	 	1,755	 	 	 	0.1	%	 	 	1,190	 	 	 	0.8	%	 	 	378	 	 	 	0.0	%	 	 	2,568	 	 	 	2.5	%	 	 	2,518	 	 	 	0.0	%
	8685 · Telephone Cell
    & Radio	 	 	600	 	 	 	0.0	%	 	 	2,844	 	 	 	0.1	%	 	 	(2,244	)	 	 	-1.5	%	 	 	3,014	 	 	 	0.1	%	 	 	(2,414	)	 	 	-2.4	%	 	 	12,676	 	 	 	0.1	%
	8686 · Security	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8687 · Employee Recruitment	 	 	2,170	 	 	 	0.1	%	 	 	6,543	 	 	 	0.2	%	 	 	(4,373	)	 	 	-3.0	%	 	 	7,721	 	 	 	0.3	%	 	 	(5,551	)	 	 	-5.4	%	 	 	14,619	 	 	 	0.1	%
	8688 · Employee Relations
    & Training	 	 	5,159	 	 	 	0.2	%	 	 	7,059	 	 	 	0.3	%	 	 	(1,900	)	 	 	-1.3	%	 	 	7,841	 	 	 	0.3	%	 	 	(2,682	)	 	 	-2.6	%	 	 	29,349	 	 	 	0.2	%
	8689 · Miscellaneous
    Expenses	 	 	(6,150	)	 	 	-0.2	%	 	 	-	 	 	 	0.0	%	 	 	(6,150	)	 	 	-4.2	%	 	 	3,242	 	 	 	0.1	%	 	 	(9,393	)	 	 	-9.2	%	 	 	18,423	 	 	 	0.1	%
	8690 · Office Supplies	 	 	1,932	 	 	 	0.1	%	 	 	3,609	 	 	 	0.1	%	 	 	(1,677	)	 	 	-1.1	%	 	 	3,886	 	 	 	0.1	%	 	 	(1,954	)	 	 	-1.9	%	 	 	12,190	 	 	 	0.1	%
	8691 · Employee Relocation	 	 	50	 	 	 	0.0	%	 	 	4,778	 	 	 	0.2	%	 	 	(4,728	)	 	 	-3.2	%	 	 	4,639	 	 	 	0.2	%	 	 	(4,589	)	 	 	-4.5	%	 	 	8,578	 	 	 	0.1	%
	8692 · Cash over/short	 	 	98	 	 	 	0.0	%	 	 	184	 	 	 	0.0	%	 	 	(86	)	 	 	-0.1	%	 	 	70	 	 	 	0.0	%	 	 	27	 	 	 	0.0	%	 	 	(147	)	 	 	0.0	%
	8693 · Licenses &
    Permits	 	 	830	 	 	 	0.0	%	 	 	877	 	 	 	0.0	%	 	 	(47	)	 	 	0.0	%	 	 	854	 	 	 	0.0	%	 	 	(24	)	 	 	0.0	%	 	 	4,283	 	 	 	0.0	%
	8694 · Student Housing	 	 	8,977	 	 	 	0.3	%	 	 	6,498	 	 	 	0.2	%	 	 	2,479	 	 	 	1.7	%	 	 	4,452	 	 	 	0.2	%	 	 	4,524	 	 	 	4.4	%	 	 	27,879	 	 	 	0.2	%
	8695 · Equipment	 	 	3,643	 	 	 	0.1	%	 	 	6,908	 	 	 	0.3	%	 	 	(3,264	)	 	 	-2.2	%	 	 	6,800	 	 	 	0.2	%	 	 	(3,156	)	 	 	-3.1	%	 	 	30,030	 	 	 	0.2	%
	8696 · Business Meetings..	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	1,249	 	 	 	0.0	%
	8697 · Business Meals	 	 	4,369	 	 	 	0.2	%	 	 	4,859	 	 	 	0.2	%	 	 	(490	)	 	 	-0.3	%	 	 	4,578	 	 	 	0.2	%	 	 	(210	)	 	 	-0.2	%	 	 	33,663	 	 	 	0.2	%
	8698 · Consultants	 	 	8,106	 	 	 	0.3	%	 	 	8,072	 	 	 	0.3	%	 	 	34	 	 	 	0.0	%	 	 	6,633	 	 	 	0.2	%	 	 	1,473	 	 	 	1.4	%	 	 	24,637	 	 	 	0.2	%
	8600 · General &
    Administrative - Other	 	 	-	 	 	 	0.0	%	 	 	2,749	 	 	 	0.1	%	 	 	(2,749	)	 	 	-1.9	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8699 · PY Consultant
    Reconciliation	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	(1,771	)	 	 	-0.1	%	 	 	1,771	 	 	 	1.7	%	 	 	16,470	 	 	 	0.1	%
	9900
    · Intercompany balance write offs	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	176	 	 	 	0.0	%	 	 	(176	)	 	 	-0.2	%	 	 	(1,057	)	 	 	0.0	%
	Total 8600 · General
    & Administrative	 	 	150,258	 	 	 	5.3	%	 	 	191,451	 	 	 	7.1	%	 	 	(41,193	)	 	 	-28.0	%	 	 	178,338	 	 	 	6.5	%	 	 	(27,904	)	 	 	-27.3	%	 	 	812,380	 	 	 	5.2	%
	Total Expense	 	 	288,874	 	 	 	10.2	%	 	 	338,544	 	 	 	12.6	%	 	 	(49,670	)	 	 	-33.8	%	 	 	335,054	 	 	 	12.3	%	 	 	(46,004	)	 	 	-45.0	%	 	 	1,458,174	 	 	 	9.3	%
	Net Income	 	 	(288,874	)	 	 	-10.2	%	 	 	(338,544	)	 	 	-12.6	%	 	 	49,670	 	 	 	33.8	%	 	 	(335,054	)	 	 	-12.3	%	 	 	46,004	 	 	 	45.0	%	 	 	(1,458,174	)	 	 	-9.3	%

 

 

 

	 	Page 14 of 23	109.1. Ex 18(a)- 1st Part - L'Auberge_Resort March 13 Issue

 

 

    	 

    	 

     

L'Auberge de Sedona, LLC.

Administrative and General Department

January through March 2013

 

	 	 	Jan 13	 	 	Feb 13	 	 	Mar 13	 	 	TOTAL	 
	Ordinary Income/Expense	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Expense	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5000 · Payroll & Benefits	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5686000 · G & A Salaries & Wages	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5684000 · Controller	 	 	1,340.00	 	 	 	0.00	 	 	 	4,913.00-	 	 	 	3,573.00-	 
	5685600 · Security	 	 	3,364.54	 	 	 	3,361.35	 	 	 	3,488.51	 	 	 	10,214.40	 
	5686130 · G & A Accounting  Coordinator	 	 	6,021.78	 	 	 	5,330.78	 	 	 	5,464.17	 	 	 	16,816.73	 
	5686180 · G & A Human Resource Director	 	 	6,138.85	 	 	 	8,957.69	 	 	 	3,494.91	 	 	 	18,591.45	 
	5686190 · G & A General Manager	 	 	12,093.08	 	 	 	10,376.93	 	 	 	13,547.47	 	 	 	36,017.48	 
	5686199 · G & A Shared Services	 	 	10,878.00	 	 	 	10,878.00	 	 	 	10,878.00	 	 	 	32,634.00	 
	5686400 · HR Coordinator	 	 	1,440.00	 	 	 	1,496.00	 	 	 	1,811.00	 	 	 	4,747.00	 
	Total 5686000 · G & A Salaries & Wages	 	 	41,276.25	 	 	 	40,400.75	 	 	 	33,771.06	 	 	 	115,448.06	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5686050 · G & A Taxes and Benefits	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5651 · G & A Payroll Taxes	 	 	3,617.07	 	 	 	2,035.52	 	 	 	866.72	 	 	 	6,519.31	 
	5652 · G & A Workmens Compensation	 	 	281.00	 	 	 	281.00	 	 	 	1,441.84	 	 	 	2,003.84	 
	5653 · G & A Employee Benefits	 	 	2,146.79-	 	 	 	2,544.55	 	 	 	2,213.95	 	 	 	2,611.71	 
	5655 · G & A PTO	 	 	2,472.92	 	 	 	3,361.91	 	 	 	4,279.32	 	 	 	10,114.15	 
	5656 · G & A Empoy Meals	 	 	659.56	 	 	 	608.92	 	 	 	650.43	 	 	 	1,918.91	 
	Total 5686050 · G & A Taxes and Benefits	 	 	4,883.76	 	 	 	8,831.90	 	 	 	9,452.26	 	 	 	23,167.92	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total 5000 · Payroll & Benefits	 	 	46,160.01	 	 	 	49,232.65	 	 	 	43,223.32	 	 	 	138,615.98	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	8600 · General & Administrative	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	8610 · IT Support	 	 	3,198.75	 	 	 	3,198.75	 	 	 	3,198.75	 	 	 	9,596.25	 
	8635 · Uniforms	 	 	474.57	 	 	 	471.13	 	 	 	575.86	 	 	 	1,521.56	 
	8651 · Computer Maint. & Support	 	 	55.36	 	 	 	802.21	 	 	 	55.36	 	 	 	912.93	 
	8660 · Charitable Contributions	 	 	100.00	 	 	 	0.00	 	 	 	0.00	 	 	 	100.00	 
	8665 · Affordable Housing Subsidy	 	 	550.00-	 	 	 	242.12-	 	 	 	825.00-	 	 	 	1,617.12-	 
	8673 · Gift Certificates	 	 	474.94	 	 	 	474.94	 	 	 	0.00	 	 	 	949.88	 
	8678 · Express Mail	 	 	1,463.85	 	 	 	0.00	 	 	 	0.00	 	 	 	1,463.85	 
	8679 · Payroll Processing Fees	 	 	3,643.02	 	 	 	4,678.16	 	 	 	2,480.02	 	 	 	10,801.20	 
	8680 · Postage	 	 	143.83	 	 	 	189.95	 	 	 	0.00	 	 	 	333.78	 
	8681 · Dues & Subscriptions	 	 	68.52	 	 	 	440.00	 	 	 	250.00	 	 	 	758.52	 
	8682 · Printing	 	 	405.75	 	 	 	0.00	 	 	 	0.00	 	 	 	405.75	 
	8683 · Credit Card Fees	 	 	32,831.65	 	 	 	31,926.96	 	 	 	27,544.65	 	 	 	92,303.26	 
	8684 · Bank Fees	 	 	1,487.23	 	 	 	357.99	 	 	 	1,100.13	 	 	 	2,945.35	 
	8685 · Telephone Cell & Radio	 	 	200.00	 	 	 	200.00	 	 	 	200.00	 	 	 	600.00	 
	8687 · Employee Recruitment	 	 	0.00	 	 	 	0.00	 	 	 	2,169.53	 	 	 	2,169.53	 
	8688 · Employee Relations & Training	 	 	1,355.56	 	 	 	2,284.64	 	 	 	1,518.81	 	 	 	5,159.01	 
	8689 · Miscellaneous Expenses	 	 	1,392.84	 	 	 	12,259.74-	 	 	 	4,716.44	 	 	 	6,150.46-	 
	8690 · Office Supplies	 	 	1,151.48	 	 	 	321.37	 	 	 	459.24	 	 	 	1,932.09	 
	8691 · Employee Relocation	 	 	0.00	 	 	 	50.00	 	 	 	0.00	 	 	 	50.00	 
	8692 · Cash over/short	 	 	25.09	 	 	 	107.58	 	 	 	35.17-	 	 	 	97.50	 
	8693 · Licenses & Permits	 	 	279.95	 	 	 	274.95	 	 	 	274.95	 	 	 	829.85	 
	8694 · Student Housing	 	 	3,268.50	 	 	 	3,206.00	 	 	 	2,502.41	 	 	 	8,976.91	 
	8695 · Equipment	 	 	2,472.22	 	 	 	293.17	 	 	 	877.81	 	 	 	3,643.20	 
	8697 · Business Meals	 	 	1,209.45	 	 	 	2,601.05	 	 	 	558.12	 	 	 	4,368.62	 
	8698 · Consultants	 	 	3,387.52	 	 	 	1,887.52	 	 	 	2,831.28	 	 	 	8,106.32	 
	Total 8600 · General & Administrative	 	 	58,540.08	 	 	 	41,264.51	 	 	 	50,453.19	 	 	 	150,257.78	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Expense	 	 	104,700.09	 	 	 	90,497.16	 	 	 	93,676.51	 	 	 	288,873.76	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Net Ordinary Income	 	 	104,700.09-	 	 	 	90,497.16-	 	 	 	93,676.51-	 	 	 	288,873.76-	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Net Income	 	 	104,700.09-	 	 	 	90,497.16-	 	 	 	93,676.51-	 	 	 	288,873.76-	 

 

 

	 	Page 15 of 23	109.1. Ex 18(a)- 1st Part - L'Auberge_Resort March 13 Issue / A&G

 

 

    	 

    	 

     

L'Auberge de Sedona Resort

Sales and Marketing Department

Actual vs. Budget and Prior Year

March 2013

 

	 	 	 	 
	 	 	Current Month	 
	 	 	Actual	 	 	% to

        Revenue
	 	 	Budget	 	 	% to

        Revenue
	 	 	Variance	 	 	% to

        Revenue
	 	 	Prior Year	 	 	% to

        Revenue
	 	 	Variance	 	 	% to

        Revenue
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Expense	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5787000 · Sales Salaries & Wages	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5787130 ·
    Sales Coordinator	 	 	5,244	 	 	 	0.4	%	 	 	4,770	 	 	 	0.4	%	 	 	474	 	 	 	0.3	%	 	 	4,631	 	 	 	0.4	%	 	 	613	 	 	 	0.3	%
	5787150 · Graphic Designer	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	5787170 · Sales Manager	 	 	21,822	 	 	 	1.5	%	 	 	16,340	 	 	 	1.3	%	 	 	5,482	 	 	 	3.2	%	 	 	15,864	 	 	 	1.3	%	 	 	5,958	 	 	 	3.0	%
	5787180 · Director of Sales	 	 	-	 	 	 	0.0	%	 	 	11,475	 	 	 	0.9	%	 	 	(11,475	)	 	 	-6.8	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	5787190 · Director of Marketing	 	 	(497	)	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	(497	)	 	 	-0.3	%	 	 	11,140	 	 	 	0.9	%	 	 	(11,637	)	 	 	-5.9	%
	5787999
    · Sales Other Pay	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	Total 5787000 · Sales Salaries & Wages	 	 	26,570	 	 	 	1.8	%	 	 	32,585	 	 	 	2.5	%	 	 	(6,015	)	 	 	-3.6	%	 	 	31,636	 	 	 	2.5	%	 	 	(5,066	)	 	 	-2.6	%
	5787050 · Sales Taxes & Benefits	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5751 · Sales Payroll
    Taxes	 	 	1,357	 	 	 	0.1	%	 	 	2,568	 	 	 	0.2	%	 	 	(1,210	)	 	 	-0.7	%	 	 	2,493	 	 	 	0.2	%	 	 	(1,136	)	 	 	-0.6	%
	5752 · Sales Workers'
    Comp	 	 	1,282	 	 	 	0.1	%	 	 	173	 	 	 	0.0	%	 	 	1,109	 	 	 	0.7	%	 	 	168	 	 	 	0.0	%	 	 	1,114	 	 	 	0.6	%
	5753 · Sales Employ
    Benefits	 	 	2,470	 	 	 	0.2	%	 	 	2,879	 	 	 	0.2	%	 	 	(410	)	 	 	-0.2	%	 	 	2,796	 	 	 	0.2	%	 	 	(326	)	 	 	-0.2	%
	5755 · Sales PTO	 	 	1,269	 	 	 	0.1	%	 	 	2,360	 	 	 	0.2	%	 	 	(1,090	)	 	 	-0.6	%	 	 	2,291	 	 	 	0.2	%	 	 	(1,021	)	 	 	-0.5	%
	5756
    · Sales Employ Meals	 	 	503	 	 	 	0.0	%	 	 	459	 	 	 	0.0	%	 	 	45	 	 	 	0.0	%	 	 	445	 	 	 	0.0	%	 	 	58	 	 	 	0.0	%
	Total 5787050 · Sales
    Taxes & Benefits	 	 	6,881	 	 	 	0.5	%	 	 	8,439	 	 	 	0.7	%	 	 	(1,557	)	 	 	-0.9	%	 	 	8,193	 	 	 	0.6	%	 	 	(1,312	)	 	 	-0.7	%
	Total 5000 · Payroll & Benefits	 	 	33,451	 	 	 	2.3	%	 	 	41,024	 	 	 	3.2	%	 	 	(7,573	)	 	 	-4.5	%	 	 	39,829	 	 	 	3.2	%	 	 	(6,378	)	 	 	-3.2	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	8700 · Sales & Marketing	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	8730 · Outside Laundry	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8735 · Uniforms	 	 	306	 	 	 	0.0	%	 	 	602	 	 	 	0.0	%	 	 	(296	)	 	 	-0.2	%	 	 	585	 	 	 	0.0	%	 	 	(279	)	 	 	-0.1	%
	8751 · Computer Maintenance
    & Support	 	 	1,145	 	 	 	0.1	%	 	 	695	 	 	 	0.1	%	 	 	450	 	 	 	0.3	%	 	 	675	 	 	 	0.1	%	 	 	470	 	 	 	0.2	%
	8760 · Advertising	 	 	499	 	 	 	0.0	%	 	 	1,939	 	 	 	0.2	%	 	 	(1,440	)	 	 	-0.9	%	 	 	1,882	 	 	 	0.1	%	 	 	(1,384	)	 	 	-0.7	%
	8761 · Brochures	 	 	12	 	 	 	0.0	%	 	 	241	 	 	 	0.0	%	 	 	(229	)	 	 	-0.1	%	 	 	234	 	 	 	0.0	%	 	 	(222	)	 	 	-0.1	%
	8762 · Production	 	 	63	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	63	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	63	 	 	 	0.0	%
	8763 · Direct/Bulk Mail	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8764 · Promotions	 	 	2,310	 	 	 	0.2	%	 	 	5,604	 	 	 	0.4	%	 	 	(3,294	)	 	 	-1.9	%	 	 	5,440	 	 	 	0.4	%	 	 	(3,131	)	 	 	-1.6	%
	8765 · Public Relations	 	 	8,075	 	 	 	0.6	%	 	 	9,003	 	 	 	0.7	%	 	 	(928	)	 	 	-0.5	%	 	 	8,740	 	 	 	0.7	%	 	 	(665	)	 	 	-0.3	%
	8766 · Print Media	 	 	(7,702	)	 	 	-0.5	%	 	 	1,030	 	 	 	0.1	%	 	 	(8,732	)	 	 	-5.2	%	 	 	1,000	 	 	 	0.1	%	 	 	(8,702	)	 	 	-4.4	%
	8767 · Trade Show	 	 	3,500	 	 	 	0.2	%	 	 	993	 	 	 	0.1	%	 	 	2,507	 	 	 	1.5	%	 	 	964	 	 	 	0.1	%	 	 	2,536	 	 	 	1.3	%
	8768 · Trade	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8770 · Media	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8776 · Photography	 	 	1,746	 	 	 	0.1	%	 	 	644	 	 	 	0.0	%	 	 	1,102	 	 	 	0.7	%	 	 	625	 	 	 	0.0	%	 	 	1,121	 	 	 	0.6	%
	8779 · Express Mail	 	 	178	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	178	 	 	 	0.1	%	 	 	-	 	 	 	0.0	%	 	 	178	 	 	 	0.1	%
	8780 · Postage	 	 	-	 	 	 	0.0	%	 	 	9	 	 	 	0.0	%	 	 	(9	)	 	 	0.0	%	 	 	9	 	 	 	0.0	%	 	 	(9	)	 	 	0.0	%
	8781 · Dues & Subscriptions	 	 	2,293	 	 	 	0.2	%	 	 	1,416	 	 	 	0.1	%	 	 	877	 	 	 	0.5	%	 	 	1,375	 	 	 	0.1	%	 	 	918	 	 	 	0.5	%
	8782 · Website	 	 	3,019	 	 	 	0.2	%	 	 	3,430	 	 	 	0.3	%	 	 	(410	)	 	 	-0.2	%	 	 	3,330	 	 	 	0.3	%	 	 	(311	)	 	 	-0.2	%
	8783 · Internet Advertising	 	 	3,077	 	 	 	0.2	%	 	 	1,206	 	 	 	0.1	%	 	 	1,871	 	 	 	1.1	%	 	 	1,171	 	 	 	0.1	%	 	 	1,906	 	 	 	1.0	%
	8784 · Printing	 	 	50	 	 	 	0.0	%	 	 	549	 	 	 	0.0	%	 	 	(499	)	 	 	-0.3	%	 	 	533	 	 	 	0.0	%	 	 	(483	)	 	 	-0.2	%
	8785 · Telephone Cell
    & Radio	 	 	250	 	 	 	0.0	%	 	 	283	 	 	 	0.0	%	 	 	(33	)	 	 	0.0	%	 	 	275	 	 	 	0.0	%	 	 	(25	)	 	 	0.0	%
	8786 · Donations	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8787 · Radio/TV	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8788 · Employee Relations
    & Training	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8789 · Miscellaneous
    Expenses	 	 	81	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	81	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	81	 	 	 	0.0	%
	8790 · Office Supplies	 	 	395	 	 	 	0.0	%	 	 	587	 	 	 	0.0	%	 	 	(192	)	 	 	-0.1	%	 	 	570	 	 	 	0.0	%	 	 	(175	)	 	 	-0.1	%
	8792 · Visitors Center	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8796 · Business Meetings	 	 	2,706	 	 	 	0.2	%	 	 	1,173	 	 	 	0.1	%	 	 	1,534	 	 	 	0.9	%	 	 	1,138	 	 	 	0.1	%	 	 	1,568	 	 	 	0.8	%
	8797 · Business Meals	 	 	-	 	 	 	0.0	%	 	 	529	 	 	 	0.0	%	 	 	(529	)	 	 	-0.3	%	 	 	513	 	 	 	0.0	%	 	 	(513	)	 	 	-0.3	%
	8798 · Consultants	 	 	-	 	 	 	0.0	%	 	 	124	 	 	 	0.0	%	 	 	(124	)	 	 	-0.1	%	 	 	120	 	 	 	0.0	%	 	 	(120	)	 	 	-0.1	%
	8799 · Tarsadia Annual
    Intelligence Fe	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8700
    · Sales & Marketing - Other	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	Total 8700 · Sales
    & Marketing	 	 	22,002	 	 	 	1.5	%	 	 	30,055	 	 	 	2.3	%	 	 	(8,053	)	 	 	-4.8	%	 	 	29,180	 	 	 	2.3	%	 	 	(7,178	)	 	 	-3.6	%
	Total Expense	 	 	55,453	 	 	 	3.8	%	 	 	71,079	 	 	 	5.5	%	 	 	(15,626	)	 	 	-9.2	%	 	 	69,009	 	 	 	5.5	%	 	 	(13,555	)	 	 	-6.9	%
	Net Income	 	 	(55,453	)	 	 	-3.8	%	 	 	(71,079	)	 	 	-5.5	%	 	 	15,626	 	 	 	9.2	%	 	 	(69,009	)	 	 	-5.5	%	 	 	13,555	 	 	 	6.9	%

 

	 	 	 	 	 	Budget	 
	 	 	Year to Date	 	 	Full Year	 
	 	 	Actual	 	 	% to

        Revenue
	 	 	Budget	 	 	% to

        Revenue
	 	 	Variance	 	 	% to

        Revenue
	 	 	Prior Year	 	 	% to

        Revenue
	 	 	Variance	 	 	% to

        Revenue
	 	 	Amount	 	 	% to

        Revenue
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Expense	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5787000 · Sales Salaries & Wages	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5787130 ·
    Sales Coordinator	 	 	14,780	 	 	 	0.5	%	 	 	17,840	 	 	 	0.7	%	 	 	(3,060	)	 	 	-2.1	%	 	 	16,050	 	 	 	0.6	%	 	 	(1,270	)	 	 	-1.2	%	 	 	78,755	 	 	 	0.5	%
	5787150 · Graphic Designer	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	5787170 · Sales Manager	 	 	57,281	 	 	 	2.0	%	 	 	50,792	 	 	 	1.9	%	 	 	6,489	 	 	 	4.4	%	 	 	41,930	 	 	 	1.5	%	 	 	15,351	 	 	 	15.0	%	 	 	157,988	 	 	 	1.0	%
	5787180 · Director of Sales	 	 	-	 	 	 	0.0	%	 	 	32,465	 	 	 	1.2	%	 	 	(32,465	)	 	 	-22.1	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	5787190 · Director of Marketing	 	 	16,085	 	 	 	0.6	%	 	 	-	 	 	 	0.0	%	 	 	16,085	 	 	 	10.9	%	 	 	32,824	 	 	 	1.2	%	 	 	(16,739	)	 	 	-16.4	%	 	 	139,309	 	 	 	0.9	%
	5787999
    · Sales Other Pay	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	2,581	 	 	 	0.0	%
	Total 5787000 · Sales Salaries & Wages	 	 	88,146	 	 	 	3.1	%	 	 	101,097	 	 	 	3.8	%	 	 	(12,951	)	 	 	-8.8	%	 	 	90,804	 	 	 	3.3	%	 	 	(2,658	)	 	 	-2.6	%	 	 	378,633	 	 	 	2.4	%
	5787050 · Sales Taxes & Benefits	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5751 · Sales Payroll
    Taxes	 	 	8,628	 	 	 	0.3	%	 	 	10,864	 	 	 	0.4	%	 	 	(2,236	)	 	 	-1.5	%	 	 	8,669	 	 	 	0.3	%	 	 	(41	)	 	 	0.0	%	 	 	31,001	 	 	 	0.2	%
	5752 · Sales Workers'
    Comp	 	 	1,844	 	 	 	0.1	%	 	 	666	 	 	 	0.0	%	 	 	1,178	 	 	 	0.8	%	 	 	546	 	 	 	0.0	%	 	 	1,297	 	 	 	1.3	%	 	 	3,167	 	 	 	0.0	%
	5753 · Sales Employ
    Benefits	 	 	6,679	 	 	 	0.2	%	 	 	8,015	 	 	 	0.3	%	 	 	(1,336	)	 	 	-0.9	%	 	 	8,789	 	 	 	0.3	%	 	 	(2,110	)	 	 	-2.1	%	 	 	38,007	 	 	 	0.2	%
	5755 · Sales PTO	 	 	3,373	 	 	 	0.1	%	 	 	4,781	 	 	 	0.2	%	 	 	(1,408	)	 	 	-1.0	%	 	 	4,565	 	 	 	0.2	%	 	 	(1,191	)	 	 	-1.2	%	 	 	13,973	 	 	 	0.1	%
	5756
    · Sales Employ Meals	 	 	1,386	 	 	 	0.0	%	 	 	1,393	 	 	 	0.1	%	 	 	(8	)	 	 	0.0	%	 	 	1,317	 	 	 	0.0	%	 	 	69	 	 	 	0.1	%	 	 	6,440	 	 	 	0.0	%
	Total 5787050 · Sales
    Taxes & Benefits	 	 	21,910	 	 	 	0.8	%	 	 	25,720	 	 	 	1.0	%	 	 	(3,810	)	 	 	-2.6	%	 	 	23,886	 	 	 	0.9	%	 	 	(1,976	)	 	 	-1.9	%	 	 	92,588	 	 	 	0.6	%
	Total 5000 · Payroll & Benefits	 	 	110,056	 	 	 	3.9	%	 	 	126,817	 	 	 	492357.0	%	 	 	(16,761	)	 	 	-11.4	%	 	 	114,691	 	 	 	4.2	%	 	 	(4,635	)	 	 	-4.5	%	 	 	471,220	 	 	 	3.0	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	8700 · Sales & Marketing	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	8730 · Outside Laundry	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8735 · Uniforms	 	 	1,110	 	 	 	0.0	%	 	 	1,494	 	 	 	0.1	%	 	 	(384	)	 	 	-0.3	%	 	 	1,246	 	 	 	0.0	%	 	 	(136	)	 	 	-0.1	%	 	 	5,304	 	 	 	0.0	%
	8751 · Computer Maintenance
    & Support	 	 	3,435	 	 	 	0.1	%	 	 	2,649	 	 	 	0.1	%	 	 	786	 	 	 	0.5	%	 	 	2,025	 	 	 	0.1	%	 	 	1,410	 	 	 	1.4	%	 	 	8,250	 	 	 	0.1	%
	8760 · Advertising	 	 	2,486	 	 	 	0.1	%	 	 	6,011	 	 	 	0.2	%	 	 	(3,525	)	 	 	-2.4	%	 	 	7,234	 	 	 	0.3	%	 	 	(4,749	)	 	 	-4.6	%	 	 	52,258	 	 	 	0.3	%
	8761 · Brochures	 	 	28	 	 	 	0.0	%	 	 	241	 	 	 	0.0	%	 	 	(213	)	 	 	-0.1	%	 	 	156	 	 	 	0.0	%	 	 	(129	)	 	 	-0.1	%	 	 	4,759	 	 	 	0.0	%
	8762 · Production	 	 	1,265	 	 	 	0.0	%	 	 	1,140	 	 	 	0.0	%	 	 	125	 	 	 	0.1	%	 	 	-	 	 	 	0.0	%	 	 	1,265	 	 	 	1.2	%	 	 	-	 	 	 	0.0	%
	8763 · Direct/Bulk Mail	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8764 · Promotions	 	 	6,267	 	 	 	0.2	%	 	 	13,712	 	 	 	0.5	%	 	 	(7,445	)	 	 	-5.1	%	 	 	13,168	 	 	 	0.5	%	 	 	(6,901	)	 	 	-6.7	%	 	 	79,727	 	 	 	0.5	%
	8765 · Public Relations	 	 	23,357	 	 	 	0.8	%	 	 	26,158	 	 	 	1.0	%	 	 	(2,801	)	 	 	-1.9	%	 	 	24,184	 	 	 	0.9	%	 	 	(827	)	 	 	-0.8	%	 	 	110,650	 	 	 	0.7	%
	8766 · Print Media	 	 	(4,706	)	 	 	-0.2	%	 	 	4,026	 	 	 	0.2	%	 	 	(8,732	)	 	 	-5.9	%	 	 	1,000	 	 	 	0.0	%	 	 	(5,706	)	 	 	-5.6	%	 	 	1,000	 	 	 	0.0	%
	8767 · Trade Show	 	 	3,831	 	 	 	0.1	%	 	 	1,538	 	 	 	0.1	%	 	 	2,293	 	 	 	1.6	%	 	 	2,019	 	 	 	0.1	%	 	 	1,812	 	 	 	1.8	%	 	 	6,135	 	 	 	0.0	%
	8768 · Trade	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8770 · Media	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8776 · Photography	 	 	5,342	 	 	 	0.2	%	 	 	2,390	 	 	 	0.1	%	 	 	2,953	 	 	 	2.0	%	 	 	1,125	 	 	 	0.0	%	 	 	4,217	 	 	 	4.1	%	 	 	11,309	 	 	 	0.1	%
	8779 · Express Mail	 	 	217	 	 	 	0.0	%	 	 	39	 	 	 	0.0	%	 	 	178	 	 	 	0.1	%	 	 	-	 	 	 	0.0	%	 	 	217	 	 	 	0.2	%	 	 	-	 	 	 	0.0	%
	8780 · Postage	 	 	56	 	 	 	0.0	%	 	 	19	 	 	 	0.0	%	 	 	37	 	 	 	0.0	%	 	 	9	 	 	 	0.0	%	 	 	47	 	 	 	0.0	%	 	 	854	 	 	 	0.0	%
	8781 · Dues & Subscriptions	 	 	5,966	 	 	 	0.2	%	 	 	4,435	 	 	 	0.2	%	 	 	1,531	 	 	 	1.0	%	 	 	2,930	 	 	 	0.1	%	 	 	3,036	 	 	 	3.0	%	 	 	9,013	 	 	 	0.1	%
	8782 · Website	 	 	13,109	 	 	 	0.5	%	 	 	14,071	 	 	 	0.5	%	 	 	(962	)	 	 	-0.7	%	 	 	10,328	 	 	 	0.4	%	 	 	2,781	 	 	 	2.7	%	 	 	55,869	 	 	 	0.4	%
	8783 · Internet Advertising	 	 	12,164	 	 	 	0.4	%	 	 	5,491	 	 	 	0.2	%	 	 	6,673	 	 	 	4.5	%	 	 	1,455	 	 	 	0.1	%	 	 	10,710	 	 	 	10.5	%	 	 	59,173	 	 	 	0.4	%
	8784 · Printing	 	 	128	 	 	 	0.0	%	 	 	1,265	 	 	 	0.0	%	 	 	(1,137	)	 	 	-0.8	%	 	 	3,523	 	 	 	0.1	%	 	 	(3,395	)	 	 	-3.3	%	 	 	8,412	 	 	 	0.1	%
	8785 · Telephone Cell
    & Radio	 	 	925	 	 	 	0.0	%	 	 	913	 	 	 	0.0	%	 	 	12	 	 	 	0.0	%	 	 	825	 	 	 	0.0	%	 	 	100	 	 	 	0.1	%	 	 	3,856	 	 	 	0.0	%
	8786 · Donations	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8787 · Radio/TV	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8788 · Employee Relations
    & Training	 	 	520	 	 	 	0.0	%	 	 	355	 	 	 	0.0	%	 	 	165	 	 	 	0.1	%	 	 	158	 	 	 	0.0	%	 	 	363	 	 	 	0.4	%	 	 	2,404	 	 	 	0.0	%
	8789 · Miscellaneous
    Expenses	 	 	109	 	 	 	0.0	%	 	 	109	 	 	 	0.0	%	 	 	(1	)	 	 	0.0	%	 	 	183	 	 	 	0.0	%	 	 	(74	)	 	 	-0.1	%	 	 	635	 	 	 	0.0	%
	8790 · Office Supplies	 	 	902	 	 	 	0.0	%	 	 	1,825	 	 	 	0.1	%	 	 	(924	)	 	 	-0.6	%	 	 	1,612	 	 	 	0.1	%	 	 	(710	)	 	 	-0.7	%	 	 	5,594	 	 	 	0.0	%
	8792 · Visitors Center	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8796 · Business Meetings	 	 	3,101	 	 	 	0.1	%	 	 	1,417	 	 	 	0.1	%	 	 	1,684	 	 	 	1.1	%	 	 	1,138	 	 	 	0.0	%	 	 	1,963	 	 	 	1.9	%	 	 	5,712	 	 	 	0.0	%
	8797 · Business Meals	 	 	340	 	 	 	0.0	%	 	 	924	 	 	 	0.0	%	 	 	(584	)	 	 	-0.4	%	 	 	595	 	 	 	0.0	%	 	 	(255	)	 	 	-0.2	%	 	 	3,710	 	 	 	0.0	%
	8798 · Consultants	 	 	-	 	 	 	0.0	%	 	 	267	 	 	 	0.0	%	 	 	(267	)	 	 	-0.2	%	 	 	330	 	 	 	0.0	%	 	 	(330	)	 	 	-0.3	%	 	 	11,032	 	 	 	0.1	%
	8799 · Tarsadia Annual
    Intelligence Fe	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8700
    · Sales & Marketing - Other	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	Total 8700 · Sales
    & Marketing	 	 	79,952	 	 	 	2.8	%	 	 	90,488	 	 	 	3.4	%	 	 	(10,537	)	 	 	-7.2	%	 	 	75,241	 	 	 	2.8	%	 	 	4,710	 	 	 	4.6	%	 	 	445,656	 	 	 	2.8	%
	Total Expense	 	 	190,008	 	 	 	6.7	%	 	 	217,305	 	 	 	8.1	%	 	 	(27,297	)	 	 	-18.6	%	 	 	189,932	 	 	 	7.0	%	 	 	75	 	 	 	0.1	%	 	 	916,876	 	 	 	5.8	%
	Net Income	 	 	(190,008	)	 	 	-6.7	%	 	 	(217,305	)	 	 	-8.1	%	 	 	27,297	 	 	 	18.6	%	 	 	(189,932	)	 	 	-7.0	%	 	 	(75	)	 	 	-0.1	%	 	 	(916,876	)	 	 	-5.8	%

 

 

 

	 	Page 16 of 23	109.1. Ex 18(a)- 1st Part - L'Auberge_Resort March 13 Issue

 

 

    	 

    	 

     

 

 

L'Auberge de Sedona, LLC.

Sales and Marketing Department

January through March 2013

 

	 	 	Jan 13	 	 	Feb 13	 	 	Mar 13	 	 	TOTAL	 
	Ordinary Income/Expense	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Expense	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5000 · Payroll & Benefits	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5787000 · Sales Salaries & Wages	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5787130 · Sales Coordinator	 	 	6,476.65	 	 	 	3,059.06	 	 	 	5,244.42	 	 	 	14,780.13	 
	5787170 · Sales Manager	 	 	19,357.26	 	 	 	16,100.95	 	 	 	21,822.48	 	 	 	57,280.69	 
	5787190 · Director of Marketing	 	 	8,736.16	 	 	 	7,846.16	 	 	 	-497.08	 	 	 	16,085.24	 
	Total 5787000 · Sales Salaries & Wages	 	 	34,570.07	 	 	 	27,006.17	 	 	 	26,569.82	 	 	 	88,146.06	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5787050 · Sales Taxes & Benefits	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5751 · Sales Payroll Taxes	 	 	4,829.56	 	 	 	2,441.04	 	 	 	1,357.37	 	 	 	8,627.97	 
	5752 · Sales Workers' Comp	 	 	281.00	 	 	 	281.00	 	 	 	1,281.66	 	 	 	1,843.66	 
	5753 · Sales Employ Benefits	 	 	1,879.41	 	 	 	2,329.99	 	 	 	2,469.57	 	 	 	6,678.97	 
	5755 · Sales PTO	 	 	985.24	 	 	 	1,118.69	 	 	 	1,269.48	 	 	 	3,373.41	 
	5756 · Sales Employ Meals	 	 	428.97	 	 	 	453.68	 	 	 	503.11	 	 	 	1,385.76	 
	Total 5787050 · Sales Taxes & Benefits	 	 	8,404.18	 	 	 	6,624.40	 	 	 	6,881.19	 	 	 	21,909.77	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total 5000 · Payroll & Benefits	 	 	42,974.25	 	 	 	33,630.57	 	 	 	33,451.01	 	 	 	110,055.83	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	8700 · Sales & Marketing	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	8735 · Uniforms	 	 	497.56	 	 	 	306.70	 	 	 	305.72	 	 	 	1,109.98	 
	8751 · Computer Maintenance & Support	 	 	1,145.00	 	 	 	1,145.00	 	 	 	1,145.00	 	 	 	3,435.00	 
	8760 · Advertising	 	 	598.51	 	 	 	1,388.51	 	 	 	498.51	 	 	 	2,485.53	 
	8761 · Brochures	 	 	0.00	 	 	 	15.26	 	 	 	12.48	 	 	 	27.74	 
	8762 · Production	 	 	1,139.67	 	 	 	62.50	 	 	 	62.50	 	 	 	1,264.67	 
	8764 · Promotions	 	 	2,577.40	 	 	 	1,380.29	 	 	 	2,309.55	 	 	 	6,267.24	 
	8765 · Public Relations	 	 	7,523.86	 	 	 	7,757.82	 	 	 	8,075.05	 	 	 	23,356.73	 
	8766 · Print Media	 	 	2,996.00	 	 	 	0.00	 	 	 	-7,702.00	 	 	 	-4,706.00	 
	8767 · Trade Show	 	 	140.17	 	 	 	190.48	 	 	 	3,500.00	 	 	 	3,830.65	 
	8776 · Photography	 	 	1,745.83	 	 	 	1,850.63	 	 	 	1,745.83	 	 	 	5,342.29	 
	8779 · Express Mail	 	 	39.40	 	 	 	0.00	 	 	 	177.81	 	 	 	217.21	 
	8780 · Postage	 	 	9.92	 	 	 	46.49	 	 	 	0.00	 	 	 	56.41	 
	8781 · Dues & Subscriptions	 	 	1,909.59	 	 	 	1,763.21	 	 	 	2,293.21	 	 	 	5,966.01	 
	8782 · Website	 	 	6,378.37	 	 	 	3,710.97	 	 	 	3,019.21	 	 	 	13,108.55	 
	8783 · Internet Advertising	 	 	3,944.96	 	 	 	5,142.50	 	 	 	3,077.00	 	 	 	12,164.46	 
	8784 · Printing	 	 	78.06	 	 	 	0.00	 	 	 	50.00	 	 	 	128.06	 
	8785 · Telephone Cell & Radio	 	 	300.00	 	 	 	375.00	 	 	 	250.00	 	 	 	925.00	 
	8788 · Employee Relations & Training	 	 	166.06	 	 	 	354.24	 	 	 	0.00	 	 	 	520.30	 
	8789 · Miscellaneous Expenses	 	 	27.75	 	 	 	0.00	 	 	 	80.91	 	 	 	108.66	 
	8790 · Office Supplies	 	 	381.39	 	 	 	125.34	 	 	 	394.98	 	 	 	901.71	 
	8796 · Business Meetings	 	 	244.90	 	 	 	150.00	 	 	 	2,706.37	 	 	 	3,101.27	 
	8797 · Business Meals	 	 	330.00	 	 	 	10.20	 	 	 	0.00	 	 	 	340.20	 
	Total 8700 · Sales & Marketing	 	 	32,174.40	 	 	 	25,775.14	 	 	 	22,002.13	 	 	 	79,951.67	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Expense	 	 	75,148.65	 	 	 	59,405.71	 	 	 	55,453.14	 	 	 	190,007.50	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Net Ordinary Income	 	 	-75,148.65	 	 	 	-59,405.71	 	 	 	-55,453.14	 	 	 	-190,007.50	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Net Income	 	 	-75,148.65	 	 	 	-59,405.71	 	 	 	-55,453.14	 	 	 	-190,007.50	 

 

 

	 	Page 17 of 23	109.1. Ex 18(a)- 1st Part - L'Auberge_Resort March 13 Issue / Sales

 

 

    	 

    	 

     

L'Auberge de Sedona Resort

Maintenance Department

Actual vs. Budget and Prior Year

March 2013

 

	 	 	 	 
	 	 	Current Month	 
	 	 	Actual	 	 	% to

        Revenue
	 	 	Budget	 	 	% to

        Revenue
	 	 	Variance	 	 	% to

        Revenue
	 	 	Prior Year	 	 	% to

        Revenue
	 	 	Variance	 	 	% to

        Revenue
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Expense	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5000 · Payroll & Benefits	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5888000 · Engineering	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5888150 ·
    Lead Groundsmen	 	 	2,792	 	 	 	0.2	%	 	 	-	 	 	 	0.0	%	 	 	2,792	 	 	 	1.6	%	 	 	2,393	 	 	 	0.2	%	 	 	399	 	 	 	0.2	%
	5888160 · Engineering
    Supervisor	 	 	3,209	 	 	 	0.2	%	 	 	3,497	 	 	 	0.3	%	 	 	(288	)	 	 	-0.2	%	 	 	3,330	 	 	 	0.3	%	 	 	(121	)	 	 	-0.1	%
	5888180 · Chief Engineer	 	 	7,912	 	 	 	0.5	%	 	 	5,247	 	 	 	0.4	%	 	 	2,664	 	 	 	1.6	%	 	 	4,998	 	 	 	0.4	%	 	 	2,914	 	 	 	1.5	%
	5888190 · Director of Engineering	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	5888600 · Groundsmen	 	 	7,475	 	 	 	0.5	%	 	 	17,027	 	 	 	1.3	%	 	 	(9,553	)	 	 	-5.6	%	 	 	13,824	 	 	 	1.1	%	 	 	(6,349	)	 	 	-3.2	%
	588600C · Groundsmen
    - Special	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	5888700 · Engineer
    I	 	 	12,105	 	 	 	0.8	%	 	 	21,262	 	 	 	1.6	%	 	 	(9,157	)	 	 	-5.4	%	 	 	11,610	 	 	 	0.9	%	 	 	494	 	 	 	0.3	%
	5888710 · Engineer
    II	 	 	8,269	 	 	 	0.6	%	 	 	-	 	 	 	0.0	%	 	 	8,269	 	 	 	4.9	%	 	 	8,639	 	 	 	0.7	%	 	 	(370	)	 	 	-0.2	%
	5888999
    · Engineering Other Pay	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	Total 5888000 · Engineering	 	 	41,761	 	 	 	2.9	%	 	 	47,033	 	 	 	3.6	%	 	 	(5,273	)	 	 	-3.1	%	 	 	44,794	 	 	 	3.5	%	 	 	(3,033	)	 	 	-1.5	%
	5888050 · Engineering Taxes & Benefits	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5851 · Prop Ops Payroll
    Taxes	 	 	4,141	 	 	 	0.3	%	 	 	5,209	 	 	 	0.4	%	 	 	(1,069	)	 	 	-0.6	%	 	 	4,961	 	 	 	0.4	%	 	 	(821	)	 	 	-0.4	%
	5852 · Prop Ops Workers'
    Comp	 	 	2,742	 	 	 	0.2	%	 	 	441	 	 	 	0.0	%	 	 	2,301	 	 	 	1.4	%	 	 	420	 	 	 	0.0	%	 	 	2,322	 	 	 	1.2	%
	5853 · Prop Ops Employ
    Benefits	 	 	3,004	 	 	 	0.2	%	 	 	585	 	 	 	0.0	%	 	 	2,419	 	 	 	1.4	%	 	 	557	 	 	 	0.0	%	 	 	2,447	 	 	 	1.2	%
	5855 · Prop Ops PTO	 	 	1,654	 	 	 	0.1	%	 	 	1,165	 	 	 	0.1	%	 	 	489	 	 	 	0.3	%	 	 	1,110	 	 	 	0.1	%	 	 	545	 	 	 	0.3	%
	5856 · Prop Ops Employ
    Meals	 	 	1,258	 	 	 	0.1	%	 	 	1,286	 	 	 	0.1	%	 	 	(28	)	 	 	0.0	%	 	 	1,225	 	 	 	0.1	%	 	 	33	 	 	 	0.0	%
	5857
    · Shared PTO Fringes	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	Total 5888050 · Engineering
    Taxes & Benefits	 	 	12,799	 	 	 	0.9	%	 	 	8,687	 	 	 	0.7	%	 	 	4,112	 	 	 	2.4	%	 	 	8,273	 	 	 	0.7	%	 	 	4,526	 	 	 	2.3	%
	Total 5000 · Payroll & Benefits	 	 	54,560	 	 	 	3.7	%	 	 	55,720	 	 	 	4.3	%	 	 	(1,161	)	 	 	-0.7	%	 	 	53,067	 	 	 	4.2	%	 	 	1,493	 	 	 	0.8	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	8800 · Repairs &
    Maintenance	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	8825 · Maintenance
    Supplies	 	 	1,565	 	 	 	0.1	%	 	 	3,535	 	 	 	0.3	%	 	 	(1,970	)	 	 	-1.2	%	 	 	3,367	 	 	 	0.3	%	 	 	(1,802	)	 	 	-0.9	%
	8826 · Paint Supplies	 	 	1,327	 	 	 	0.1	%	 	 	1,097	 	 	 	0.1	%	 	 	230	 	 	 	0.1	%	 	 	1,045	 	 	 	0.1	%	 	 	282	 	 	 	0.1	%
	8827 · Small Tools
    & Equipment	 	 	-	 	 	 	0.0	%	 	 	49	 	 	 	0.0	%	 	 	(49	)	 	 	0.0	%	 	 	47	 	 	 	0.0	%	 	 	(47	)	 	 	0.0	%
	8835 · Uniforms	 	 	(140	)	 	 	0.0	%	 	 	646	 	 	 	0.1	%	 	 	(786	)	 	 	-0.5	%	 	 	615	 	 	 	0.0	%	 	 	(755	)	 	 	-0.4	%
	8843 · Linens	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8850 · Plumbing	 	 	1,442	 	 	 	0.1	%	 	 	1,647	 	 	 	0.1	%	 	 	(205	)	 	 	-0.1	%	 	 	1,569	 	 	 	0.1	%	 	 	(127	)	 	 	-0.1	%
	8851 · AC/Refrigeration	 	 	37	 	 	 	0.0	%	 	 	(160	)	 	 	0.0	%	 	 	197	 	 	 	0.1	%	 	 	(153	)	 	 	0.0	%	 	 	190	 	 	 	0.1	%
	8852 · Auto Expense	 	 	1,298	 	 	 	0.1	%	 	 	1,846	 	 	 	0.1	%	 	 	(548	)	 	 	-0.3	%	 	 	1,759	 	 	 	0.1	%	 	 	(460	)	 	 	-0.2	%
	8853 · Buildings	 	 	2,235	 	 	 	0.2	%	 	 	114	 	 	 	0.0	%	 	 	2,121	 	 	 	1.3	%	 	 	108	 	 	 	0.0	%	 	 	2,126	 	 	 	1.1	%
	8855 · Electrical/Mechanical	 	 	41	 	 	 	0.0	%	 	 	537	 	 	 	0.0	%	 	 	(496	)	 	 	-0.3	%	 	 	511	 	 	 	0.0	%	 	 	(470	)	 	 	-0.2	%
	8856 · Equipment Repair	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8857 · HVAC	 	 	188	 	 	 	0.0	%	 	 	1,515	 	 	 	0.1	%	 	 	(1,327	)	 	 	-0.8	%	 	 	1,443	 	 	 	0.1	%	 	 	(1,255	)	 	 	-0.6	%
	8858 · Grounds	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8858C · Grounds - construction	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8858 · Grounds - Other	 	 	1,246	 	 	 	0.1	%	 	 	6,724	 	 	 	0.5	%	 	 	(5,478	)	 	 	-3.2	%	 	 	6,404	 	 	 	0.5	%	 	 	(5,158	)	 	 	-2.6	%
	8859 · Lighting	 	 	1,537	 	 	 	0.1	%	 	 	787	 	 	 	0.1	%	 	 	750	 	 	 	0.4	%	 	 	750	 	 	 	0.1	%	 	 	788	 	 	 	0.4	%
	8860 · Rental Equipment	 	 	-	 	 	 	0.0	%	 	 	469	 	 	 	0.0	%	 	 	(469	)	 	 	-0.3	%	 	 	447	 	 	 	0.0	%	 	 	(447	)	 	 	-0.2	%
	8861 · Locks &
    Keys	 	 	43	 	 	 	0.0	%	 	 	764	 	 	 	0.1	%	 	 	(721	)	 	 	-0.4	%	 	 	727	 	 	 	0.1	%	 	 	(685	)	 	 	-0.3	%
	8862 · Pest Control	 	 	684	 	 	 	0.0	%	 	 	2,081	 	 	 	0.2	%	 	 	(1,397	)	 	 	-0.8	%	 	 	1,982	 	 	 	0.2	%	 	 	(1,298	)	 	 	-0.7	%
	8864 · Pool & Spa	 	 	398	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	398	 	 	 	0.2	%	 	 	-	 	 	 	0.0	%	 	 	398	 	 	 	0.2	%
	8867 · Propane	 	 	692	 	 	 	0.0	%	 	 	1,546	 	 	 	0.1	%	 	 	(854	)	 	 	-0.5	%	 	 	1,473	 	 	 	0.1	%	 	 	(781	)	 	 	-0.4	%
	8868 · Fire Prevention	 	 	273	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	273	 	 	 	0.2	%	 	 	-	 	 	 	0.0	%	 	 	273	 	 	 	0.1	%
	8878 · Express Mail	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8880 · Postage	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8883 · Service Contracts	 	 	2,676	 	 	 	0.2	%	 	 	2,901	 	 	 	0.2	%	 	 	(226	)	 	 	-0.1	%	 	 	2,763	 	 	 	0.2	%	 	 	(88	)	 	 	0.0	%
	8885 · Telephone Cell
    & Radio	 	 	50	 	 	 	0.0	%	 	 	53	 	 	 	0.0	%	 	 	(3	)	 	 	0.0	%	 	 	50	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8886 · Contract Labor	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8887 · Storage Rental	 	 	2,450	 	 	 	0.2	%	 	 	239	 	 	 	0.0	%	 	 	2,211	 	 	 	1.3	%	 	 	228	 	 	 	0.0	%	 	 	2,222	 	 	 	1.1	%
	8888 · Signage	 	 	-	 	 	 	0.0	%	 	 	117	 	 	 	0.0	%	 	 	(117	)	 	 	-0.1	%	 	 	112	 	 	 	0.0	%	 	 	(112	)	 	 	-0.1	%
	8889 · Miscellaneous
    Expenses	 	 	1,649	 	 	 	0.1	%	 	 	798	 	 	 	0.1	%	 	 	851	 	 	 	0.5	%	 	 	760	 	 	 	0.1	%	 	 	889	 	 	 	0.5	%
	8890 · Office Supplies	 	 	-	 	 	 	0.0	%	 	 	1,061	 	 	 	0.1	%	 	 	(1,061	)	 	 	-0.6	%	 	 	1,010	 	 	 	0.1	%	 	 	(1,010	)	 	 	-0.5	%
	8891 · Employee Relations
    & Training	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8896 · Business Travel	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8897 · Business Meals	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8899A · Final Rm Prep
    - construction	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8899C · Final Rms prep
    - construction	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8899 · Final Room Prep
    - Renovated Rms - Other	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8800
    · Repairs & Maintenance - Other	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	Total 8800 · Repairs
    & Maintenance	 	 	19,692	 	 	 	1.3	%	 	 	28,367	 	 	 	2.2	%	 	 	(8,675	)	 	 	-5.1	%	 	 	27,016	 	 	 	2.1	%	 	 	(7,324	)	 	 	-3.7	%
	Total Expense	 	 	74,252	 	 	 	5.1	%	 	 	84,087	 	 	 	6.5	%	 	 	(9,835	)	 	 	-5.8	%	 	 	80,083	 	 	 	6.3	%	 	 	(5,831	)	 	 	-3.0	%
	Net Income	 	 	(74,252	)	 	 	-5.1	%	 	 	(84,087	)	 	 	-6.5	%	 	 	9,835	 	 	 	5.8	%	 	 	(80,083	)	 	 	-6.3	%	 	 	5,831	 	 	 	3.0	%

 

	 	 	 	 	 	Budget	 
	 	 	Year to Date	 	 	Full Year	 
	 	 	Actual	 	 	% to

        Revenue
	 	 	Budget	 	 	% to

        Revenue
	 	 	Variance	 	 	% to

        Revenue
	 	 	Prior Year	 	 	% to

        Revenue
	 	 	Variance	 	 	% to

        Revenue
	 	 	Amount	 	 	% to

        Revenue
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Expense	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5000 · Payroll & Benefits	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5888000 · Engineering	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5888150 ·
    Lead Groundsmen	 	 	8,203	 	 	 	0.3	%	 	 	-	 	 	 	0.0	%	 	 	8,203	 	 	 	5.6	%	 	 	5,347	 	 	 	0.2	%	 	 	2,856	 	 	 	2.8	%	 	 	21,938	 	 	 	0.1	%
	5888160 · Engineering
    Supervisor	 	 	9,113	 	 	 	0.3	%	 	 	10,501	 	 	 	0.4	%	 	 	(1,388	)	 	 	-0.9	%	 	 	10,208	 	 	 	0.4	%	 	 	(1,096	)	 	 	-1.1	%	 	 	22,158	 	 	 	0.1	%
	5888180 · Chief Engineer	 	 	21,363	 	 	 	0.8	%	 	 	16,357	 	 	 	0.6	%	 	 	5,006	 	 	 	3.4	%	 	 	12,430	 	 	 	0.5	%	 	 	8,933	 	 	 	8.7	%	 	 	56,999	 	 	 	0.4	%
	5888190 · Director of Engineering	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	12,256	 	 	 	0.1	%
	5888600 · Groundsmen	 	 	23,276	 	 	 	0.8	%	 	 	41,443	 	 	 	1.5	%	 	 	(18,167	)	 	 	-12.4	%	 	 	32,764	 	 	 	1.2	%	 	 	(9,488	)	 	 	-9.3	%	 	 	96,138	 	 	 	0.6	%
	588600C · Groundsmen
    - Special	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	5888700 · Engineer
    I	 	 	38,424	 	 	 	1.4	%	 	 	62,820	 	 	 	2.3	%	 	 	(24,396	)	 	 	-16.6	%	 	 	33,100	 	 	 	1.2	%	 	 	5,324	 	 	 	5.2	%	 	 	135,676	 	 	 	0.9	%
	5888710 · Engineer
    II	 	 	20,979	 	 	 	0.7	%	 	 	-	 	 	 	0.0	%	 	 	20,979	 	 	 	14.3	%	 	 	30,232	 	 	 	1.1	%	 	 	(9,253	)	 	 	-9.0	%	 	 	123,855	 	 	 	0.8	%
	5888999
    · Engineering Other Pay	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	Total 5888000 · Engineering	 	 	121,358	 	 	 	4.3	%	 	 	131,122	 	 	 	4.9	%	 	 	(9,764	)	 	 	-6.6	%	 	 	124,081	 	 	 	4.6	%	 	 	(2,724	)	 	 	-2.7	%	 	 	469,021	 	 	 	3.0	%
	5888050 · Engineering Taxes & Benefits	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5851 · Prop Ops Payroll
    Taxes	 	 	13,525	 	 	 	0.5	%	 	 	15,814	 	 	 	0.6	%	 	 	(2,289	)	 	 	-1.6	%	 	 	14,025	 	 	 	0.5	%	 	 	(500	)	 	 	-0.5	%	 	 	46,566	 	 	 	0.3	%
	5852 · Prop Ops Workers'
    Comp	 	 	4,146	 	 	 	0.1	%	 	 	1,608	 	 	 	0.1	%	 	 	2,539	 	 	 	1.7	%	 	 	1,366	 	 	 	0.1	%	 	 	2,780	 	 	 	2.7	%	 	 	6,180	 	 	 	0.0	%
	5853 · Prop Ops Employ
    Benefits	 	 	9,425	 	 	 	0.3	%	 	 	7,416	 	 	 	492357.0	%	 	 	2,009	 	 	 	1.4	%	 	 	5,601	 	 	 	0.2	%	 	 	3,825	 	 	 	3.7	%	 	 	22,874	 	 	 	0.1	%
	5855 · Prop Ops PTO	 	 	3,778	 	 	 	0.1	%	 	 	2,828	 	 	 	0.1	%	 	 	949	 	 	 	0.6	%	 	 	2,554	 	 	 	0.1	%	 	 	1,223	 	 	 	1.2	%	 	 	12,268	 	 	 	0.1	%
	5856 · Prop Ops Employ
    Meals	 	 	3,464	 	 	 	0.1	%	 	 	3,467	 	 	 	0.1	%	 	 	(2	)	 	 	0.0	%	 	 	3,543	 	 	 	0.1	%	 	 	(79	)	 	 	-0.1	%	 	 	16,341	 	 	 	0.1	%
	5857
    · Shared PTO Fringes	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	Total 5888050 · Engineering
    Taxes & Benefits	 	 	34,338	 	 	 	1.2	%	 	 	31,132	 	 	 	1.2	%	 	 	3,206	 	 	 	2.2	%	 	 	27,089	 	 	 	1.0	%	 	 	7,249	 	 	 	7.1	%	 	 	104,229	 	 	 	0.7	%
	Total 5000 · Payroll & Benefits	 	 	155,696	 	 	 	5.5	%	 	 	162,254	 	 	 	6.1	%	 	 	(6,558	)	 	 	-4.5	%	 	 	151,171	 	 	 	5.5	%	 	 	4,525	 	 	 	4.4	%	 	 	573,250	 	 	 	3.6	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	8800 · Repairs &
    Maintenance	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	8825 · Maintenance
    Supplies	 	 	6,373	 	 	 	0.2	%	 	 	9,902	 	 	 	0.4	%	 	 	(3,529	)	 	 	-2.4	%	 	 	9,452	 	 	 	0.3	%	 	 	(3,079	)	 	 	-3.0	%	 	 	35,323	 	 	 	0.2	%
	8826 · Paint Supplies	 	 	2,203	 	 	 	0.1	%	 	 	3,018	 	 	 	0.1	%	 	 	(815	)	 	 	-0.6	%	 	 	3,012	 	 	 	0.1	%	 	 	(809	)	 	 	-0.8	%	 	 	14,033	 	 	 	0.1	%
	8827 · Small Tools
    & Equipment	 	 	28	 	 	 	0.0	%	 	 	96	 	 	 	0.0	%	 	 	(69	)	 	 	0.0	%	 	 	66	 	 	 	0.0	%	 	 	(38	)	 	 	0.0	%	 	 	2,042	 	 	 	0.0	%
	8835 · Uniforms	 	 	(10	)	 	 	0.0	%	 	 	1,316	 	 	 	0.0	%	 	 	(1,326	)	 	 	-0.9	%	 	 	1,846	 	 	 	0.1	%	 	 	(1,856	)	 	 	-1.8	%	 	 	3,581	 	 	 	0.0	%
	8843 · Linens	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8850 · Plumbing	 	 	4,711	 	 	 	0.2	%	 	 	4,907	 	 	 	0.2	%	 	 	(196	)	 	 	-0.1	%	 	 	1,747	 	 	 	0.1	%	 	 	2,965	 	 	 	2.9	%	 	 	12,159	 	 	 	0.1	%
	8851 · AC/Refrigeration	 	 	1,353	 	 	 	0.0	%	 	 	468	 	 	 	0.0	%	 	 	886	 	 	 	0.6	%	 	 	96	 	 	 	0.0	%	 	 	1,257	 	 	 	1.2	%	 	 	7,203	 	 	 	0.0	%
	8852 · Auto Expense	 	 	2,900	 	 	 	0.1	%	 	 	5,210	 	 	 	0.2	%	 	 	(2,309	)	 	 	-1.6	%	 	 	766	 	 	 	0.0	%	 	 	2,135	 	 	 	2.1	%	 	 	25,966	 	 	 	0.2	%
	8853 · Buildings	 	 	4,274	 	 	 	0.2	%	 	 	607	 	 	 	0.0	%	 	 	3,666	 	 	 	2.5	%	 	 	390	 	 	 	0.0	%	 	 	3,884	 	 	 	3.8	%	 	 	3,161	 	 	 	0.0	%
	8855 · Electrical/Mechanical	 	 	1,601	 	 	 	0.1	%	 	 	1,440	 	 	 	0.1	%	 	 	161	 	 	 	0.1	%	 	 	106	 	 	 	0.0	%	 	 	1,495	 	 	 	1.5	%	 	 	4,867	 	 	 	0.0	%
	8856 · Equipment Repair	 	 	222	 	 	 	0.0	%	 	 	1,478	 	 	 	0.1	%	 	 	(1,256	)	 	 	-0.9	%	 	 	1,467	 	 	 	0.1	%	 	 	(1,245	)	 	 	-1.2	%	 	 	9,485	 	 	 	0.1	%
	8857 · HVAC	 	 	2,529	 	 	 	0.1	%	 	 	2,652	 	 	 	0.1	%	 	 	(123	)	 	 	-0.1	%	 	 	2,407	 	 	 	0.1	%	 	 	122	 	 	 	0.1	%	 	 	11,161	 	 	 	0.1	%
	8858 · Grounds	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8858C · Grounds - construction	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	94	 	 	 	0.0	%	 	 	(94	)	 	 	-0.1	%	 	 	94	 	 	 	0.0	%
	8858 · Grounds - Other	 	 	5,385	 	 	 	0.2	%	 	 	15,941	 	 	 	0.6	%	 	 	(10,556	)	 	 	-7.2	%	 	 	16,321	 	 	 	0.6	%	 	 	(10,936	)	 	 	-10.7	%	 	 	51,227	 	 	 	0.3	%
	8859 · Lighting	 	 	3,905	 	 	 	0.1	%	 	 	2,606	 	 	 	0.1	%	 	 	1,299	 	 	 	0.9	%	 	 	2,254	 	 	 	0.1	%	 	 	1,651	 	 	 	1.6	%	 	 	10,406	 	 	 	0.1	%
	8860 · Rental Equipment	 	 	-	 	 	 	0.0	%	 	 	(505	)	 	 	0.0	%	 	 	505	 	 	 	0.3	%	 	 	(380	)	 	 	0.0	%	 	 	380	 	 	 	0.4	%	 	 	2,487	 	 	 	0.0	%
	8861 · Locks &
    Keys	 	 	243	 	 	 	0.0	%	 	 	1,254	 	 	 	0.0	%	 	 	(1,010	)	 	 	-0.7	%	 	 	1,487	 	 	 	0.1	%	 	 	(1,243	)	 	 	-1.2	%	 	 	8,797	 	 	 	0.1	%
	8862 · Pest Control	 	 	1,992	 	 	 	0.1	%	 	 	3,102	 	 	 	0.1	%	 	 	(1,110	)	 	 	-0.8	%	 	 	3,281	 	 	 	0.1	%	 	 	(1,289	)	 	 	-1.3	%	 	 	17,167	 	 	 	0.1	%
	8864 · Pool & Spa	 	 	535	 	 	 	0.0	%	 	 	33	 	 	 	0.0	%	 	 	502	 	 	 	0.3	%	 	 	-	 	 	 	0.0	%	 	 	535	 	 	 	0.5	%	 	 	3,527	 	 	 	0.0	%
	8867 · Propane	 	 	1,345	 	 	 	0.0	%	 	 	2,398	 	 	 	0.1	%	 	 	(1,053	)	 	 	-0.7	%	 	 	3,467	 	 	 	0.1	%	 	 	(2,121	)	 	 	-2.1	%	 	 	9,946	 	 	 	0.1	%
	8868 · Fire Prevention	 	 	(504	)	 	 	0.0	%	 	 	(1,104	)	 	 	0.0	%	 	 	600	 	 	 	0.4	%	 	 	146	 	 	 	0.0	%	 	 	(649	)	 	 	-0.6	%	 	 	5,042	 	 	 	0.0	%
	8878 · Express Mail	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8880 · Postage	 	 	5	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	5	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	5	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8883 · Service Contracts	 	 	5,746	 	 	 	0.2	%	 	 	6,428	 	 	 	0.2	%	 	 	(682	)	 	 	-0.5	%	 	 	6,736	 	 	 	0.2	%	 	 	(990	)	 	 	-1.0	%	 	 	25,963	 	 	 	0.2	%
	8885 · Telephone Cell
    & Radio	 	 	502	 	 	 	0.0	%	 	 	454	 	 	 	0.0	%	 	 	48	 	 	 	0.0	%	 	 	50	 	 	 	0.0	%	 	 	452	 	 	 	0.4	%	 	 	1,711	 	 	 	0.0	%
	8886 · Contract Labor	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	1,314	 	 	 	0.0	%	 	 	(1,314	)	 	 	-1.3	%	 	 	1,952	 	 	 	0.0	%
	8887 · Storage Rental	 	 	7,107	 	 	 	0.3	%	 	 	3,276	 	 	 	0.1	%	 	 	3,831	 	 	 	2.6	%	 	 	1,945	 	 	 	0.1	%	 	 	5,162	 	 	 	5.0	%	 	 	11,076	 	 	 	0.1	%
	8888 · Signage	 	 	-	 	 	 	0.0	%	 	 	117	 	 	 	0.0	%	 	 	(117	)	 	 	-0.1	%	 	 	112	 	 	 	0.0	%	 	 	(112	)	 	 	-0.1	%	 	 	966	 	 	 	0.0	%
	8889 · Miscellaneous
    Expenses	 	 	2,216	 	 	 	0.1	%	 	 	821	 	 	 	0.0	%	 	 	1,395	 	 	 	0.9	%	 	 	773	 	 	 	0.0	%	 	 	1,443	 	 	 	1.4	%	 	 	1,114	 	 	 	0.0	%
	8890 · Office Supplies	 	 	68	 	 	 	0.0	%	 	 	1,061	 	 	 	0.0	%	 	 	(993	)	 	 	-0.7	%	 	 	1,058	 	 	 	0.0	%	 	 	(990	)	 	 	-1.0	%	 	 	2,073	 	 	 	0.0	%
	8891 · Employee Relations
    & Training	 	 	-	 	 	 	0.0	%	 	 	210	 	 	 	0.0	%	 	 	(210	)	 	 	-0.1	%	 	 	200	 	 	 	0.0	%	 	 	(200	)	 	 	-0.2	%	 	 	461	 	 	 	0.0	%
	8896 · Business Travel	 	 	275	 	 	 	0.0	%	 	 	227	 	 	 	0.0	%	 	 	48	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	275	 	 	 	0.3	%	 	 	-	 	 	 	0.0	%
	8897 · Business Meals	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8899A · Final Rm Prep
    - construction	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8899C · Final Rms prep
    - construction	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8899 · Final Room Prep
    - Renovated Rms - Other	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8800
    · Repairs & Maintenance - Other	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	Total 8800 · Repairs
    & Maintenance	 	 	55,005	 	 	 	1.9	%	 	 	67,413	 	 	 	2.5	%	 	 	(12,408	)	 	 	-8.4	%	 	 	60,210	 	 	 	2.2	%	 	 	(5,205	)	 	 	-5.1	%	 	 	282,989	 	 	 	1.8	%
	Total Expense	 	 	210,700	 	 	 	7.5	%	 	 	229,667	 	 	 	8.6	%	 	 	(18,966	)	 	 	-12.9	%	 	 	211,380.51	 	 	 	7.8	%	 	 	(680	)	 	 	-0.7	%	 	 	856,238	 	 	 	5.4	%
	Net Income	 	 	(210,700	)	 	 	-7.5	%	 	 	(229,667	)	 	 	-8.6	%	 	 	18,966	 	 	 	12.9	%	 	 	(211,381	)	 	 	-7.8	%	 	 	680	 	 	 	0.7	%	 	 	(856,238	)	 	 	-5.4	%

 

 

	 	Page 18 of 23	109.1. Ex 18(a)- 1st Part - L'Auberge_Resort March 13 Issue

 

 

    	 

    	 

     

L'Auberge de Sedona, LLC.

Maintenance Department

January through March 2013

 

	 	 	Jan 13	 	 	Feb 13	 	 	Mar 13	 	 	TOTAL	 
	Ordinary Income/Expense	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Expense	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5000 · Payroll & Benefits	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5888000 · Engineering	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5888150 · Lead Groundsmen	 	 	2,826.13	 	 	 	2,584.71	 	 	 	2,791.92	 	 	 	8,202.76	 
	5888160 · Engineering Supervisor	 	 	3,238.75	 	 	 	2,665.21	 	 	 	3,208.79	 	 	 	9,112.75	 
	5888180 · Chief Engineer	 	 	6,912.54	 	 	 	6,538.46	 	 	 	7,911.77	 	 	 	21,362.77	 
	5888600 · Groundsmen	 	 	8,328.88	 	 	 	7,472.86	 	 	 	7,474.72	 	 	 	23,276.46	 
	5888700 · Engineer I	 	 	13,935.51	 	 	 	12,383.71	 	 	 	12,104.79	 	 	 	38,424.01	 
	5888710 · Engineer II	 	 	5,390.25	 	 	 	7,319.76	 	 	 	8,268.74	 	 	 	20,978.75	 
	Total 5888000 · Engineering	 	 	40,632.06	 	 	 	38,964.71	 	 	 	41,760.73	 	 	 	121,357.50	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5888050 · Engineering Taxes & Benefits	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5851 · Prop Ops Payroll Taxes	 	 	5,700.55	 	 	 	3,683.79	 	 	 	4,140.60	 	 	 	13,524.94	 
	5852 · Prop Ops Workers' Comp	 	 	702.00	 	 	 	702.00	 	 	 	2,742.05	 	 	 	4,146.05	 
	5853 · Prop Ops Employ Benefits	 	 	2,793.73	 	 	 	3,627.44	 	 	 	3,004.29	 	 	 	9,425.46	 
	5855 · Prop Ops PTO	 	 	888.58	 	 	 	1,234.55	 	 	 	1,654.45	 	 	 	3,777.58	 
	5856 · Prop Ops Employ Meals	 	 	1,072.43	 	 	 	1,134.20	 	 	 	1,257.78	 	 	 	3,464.41	 
	Total 5888050 · Engineering Taxes & Benefits	 	 	11,157.29	 	 	 	10,381.98	 	 	 	12,799.17	 	 	 	34,338.44	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total 5000 · Payroll & Benefits	 	 	51,789.35	 	 	 	49,346.69	 	 	 	54,559.90	 	 	 	155,695.94	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	8800 · Repairs & Maintenance	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	8825 · Maintenance Supplies	 	 	2,574.57	 	 	 	2,232.98	 	 	 	1,565.49	 	 	 	6,373.04	 
	8826 · Paint Supplies	 	 	365.66	 	 	 	510.07	 	 	 	1,327.24	 	 	 	2,202.97	 
	8827 · Small Tools & Equipment	 	 	27.57	 	 	 	0.00	 	 	 	0.00	 	 	 	27.57	 
	8835 · Uniforms	 	 	23.81	 	 	 	106.00	 	 	 	-139.79	 	 	 	-9.98	 
	8850 · Plumbing	 	 	3,142.11	 	 	 	127.52	 	 	 	1,441.66	 	 	 	4,711.29	 
	8851 · AC/Refrigeration	 	 	262.23	 	 	 	1,054.35	 	 	 	36.88	 	 	 	1,353.46	 
	8852 · Auto Expense	 	 	1,471.87	 	 	 	130.00	 	 	 	1,298.25	 	 	 	2,900.12	 
	8853 · Buildings	 	 	493.93	 	 	 	1,545.38	 	 	 	2,234.51	 	 	 	4,273.82	 
	8855 · Electrical/Mechanical	 	 	845.97	 	 	 	713.92	 	 	 	41.14	 	 	 	1,601.03	 
	8856 · Equipment Repair	 	 	221.82	 	 	 	0.00	 	 	 	0.00	 	 	 	221.82	 
	8857 · HVAC	 	 	400.37	 	 	 	1,940.92	 	 	 	187.93	 	 	 	2,529.22	 
	8858 · Grounds	 	 	3,198.15	 	 	 	940.36	 	 	 	1,246.12	 	 	 	5,384.63	 
	8859 · Lighting	 	 	1,245.69	 	 	 	1,122.18	 	 	 	1,537.40	 	 	 	3,905.27	 
	8861 · Locks & Keys	 	 	3.98	 	 	 	196.78	 	 	 	42.71	 	 	 	243.47	 
	8862 · Pest Control	 	 	654.00	 	 	 	654.00	 	 	 	683.78	 	 	 	1,991.78	 
	8864 · Pool & Spa	 	 	33.06	 	 	 	103.18	 	 	 	398.41	 	 	 	534.65	 
	8867 · Propane	 	 	135.20	 	 	 	518.03	 	 	 	692.04	 	 	 	1,345.27	 
	8868 · Fire Prevention	 	 	-1,256.96	 	 	 	480.36	 	 	 	273.00	 	 	 	-503.60	 
	8880 · Postage	 	 	0.00	 	 	 	5.05	 	 	 	0.00	 	 	 	5.05	 
	8883 · Service Contracts	 	 	1,267.00	 	 	 	1,803.35	 	 	 	2,675.74	 	 	 	5,746.09	 
	8885 · Telephone Cell & Radio	 	 	401.68	 	 	 	50.00	 	 	 	50.00	 	 	 	501.68	 
	8887 · Storage Rental	 	 	2,206.67	 	 	 	2,450.20	 	 	 	2,450.20	 	 	 	7,107.07	 
	8889 · Miscellaneous Expenses	 	 	8.86	 	 	 	557.88	 	 	 	1,649.34	 	 	 	2,216.08	 
	8890 · Office Supplies	 	 	0.00	 	 	 	67.75	 	 	 	0.00	 	 	 	67.75	 
	8896 · Business Travel	 	 	226.60	 	 	 	48.40	 	 	 	0.00	 	 	 	275.00	 
	Total 8800 · Repairs & Maintenance	 	 	17,953.84	 	 	 	17,358.66	 	 	 	19,692.05	 	 	 	55,004.55	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Expense	 	 	69,743.19	 	 	 	66,705.35	 	 	 	74,251.95	 	 	 	210,700.49	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Net Ordinary Income	 	 	-69,743.19	 	 	 	-66,705.35	 	 	 	-74,251.95	 	 	 	-210,700.49	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Net Income	 	 	-69,743.19	 	 	 	-66,705.35	 	 	 	-74,251.95	 	 	 	-210,700.49	 

 

 

	 	Page 19 of 23	109.1. Ex 18(a)- 1st Part - L'Auberge_Resort March 13 Issue / R&M

 

 

    	 

    	 

     

L'Auberge de Sedona Resort

Utilities Department

Actual vs. Budget and Prior Year

March 2013

 

	 	 	 	 
	 	 	Current Month	 
	 	 	Actual	 	 	% to

        Revenue
	 	 	Budget	 	 	% to

        Revenue
	 	 	Variance	 	 	% to

        Revenue
	 	 	Prior Year	 	 	% to

        Revenue
	 	 	Variance	 	 	% to

        Revenue
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Expense	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	8500 · Utilities	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	8501 · Gas	 	 	4,919	 	 	 	0.3	%	 	 	5,780	 	 	 	0.4	%	 	 	(861	)	 	 	-0.5	%	 	 	5,611	 	 	 	0.4	%	 	 	(693	)	 	 	-0.4	%
	8501.1 · Gas- Affordable
    Housing	 	 	406	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	406	 	 	 	0.2	%	 	 	(96	)	 	 	0.0	%	 	 	502	 	 	 	0.3	%
	8502 · Electricity	 	 	12,114	 	 	 	0.8	%	 	 	12,579	 	 	 	1.0	%	 	 	(466	)	 	 	-0.3	%	 	 	12,213	 	 	 	1.0	%	 	 	(99	)	 	 	-0.1	%
	8502.1 · Electricity-Affordable Housing	 	 	276	 	 	 	0.0	%	 	 	201	 	 	 	0.0	%	 	 	75	 	 	 	0.0	%	 	 	291	 	 	 	0.0	%	 	 	(15	)	 	 	0.0	%
	8503 · Water	 	 	5,230	 	 	 	0.4	%	 	 	6,593	 	 	 	0.5	%	 	 	(1,363	)	 	 	-0.8	%	 	 	6,401	 	 	 	0.5	%	 	 	(1,171	)	 	 	-0.6	%
	8503.1 · Water- Affordable
    Housing	 	 	223	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	223	 	 	 	0.1	%	 	 	-	 	 	 	0.0	%	 	 	223	 	 	 	0.1	%
	8504 · Sewer	 	 	3,459	 	 	 	0.2	%	 	 	4,896	 	 	 	0.4	%	 	 	(1,438	)	 	 	-0.8	%	 	 	4,754	 	 	 	0.4	%	 	 	(1,295	)	 	 	-0.7	%
	8504.1 · Sewer- Affordable
    Housing	 	 	146	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	146	 	 	 	0.1	%	 	 	-	 	 	 	0.0	%	 	 	146	 	 	 	0.1	%
	8866 · Trash Removal	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	1,187	 	 	 	0.1	%	 	 	(1,187	)	 	 	-0.6	%
	8866C · Trash removal
    - construction	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8866
    · Trash Removal - Other	 	 	1,199	 	 	 	0.1	%	 	 	1,223	 	 	 	0.1	%	 	 	(24	)	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	1,199	 	 	 	0.6	%
	Total
    8866 · Trash Removal	 	 	1,199	 	 	 	0.1	%	 	 	1,223	 	 	 	0.1	%	 	 	(24	)	 	 	0.0	%	 	 	1,187	 	 	 	0.1	%	 	 	12	 	 	 	0.0	%
	Total 8500 · Utilities	 	 	27,970	 	 	 	1.9	%	 	 	31,272	 	 	 	2.4	%	 	 	(3,301	)	 	 	-1.9	%	 	 	30,361	 	 	 	2.4	%	 	 	(2,391	)	 	 	-1.2	%
	Total Expense	 	 	27,970	 	 	 	1.9	%	 	 	31,272	 	 	 	2.4	%	 	 	(3,301	)	 	 	-1.9	%	 	 	30,361	 	 	 	2.4	%	 	 	(2,391	)	 	 	-1.2	%
	Net Income	 	 	(27,970	)	 	 	-1.9	%	 	 	(31,272	)	 	 	-2.4	%	 	 	3,301	 	 	 	1.9	%	 	 	(30,361	)	 	 	-2.4	%	 	 	2,391	 	 	 	1.2	%

 

	 	 	 	 	 	Budget	 
	 	 	Year to Date	 	 	Full Year	 
	 	 	Actual	 	 	% to

        Revenue
	 	 	Budget	 	 	% to

        Revenue
	 	 	Variance	 	 	% to

        Revenue
	 	 	Prior Year	 	 	% to

        Revenue
	 	 	Variance	 	 	% to

        Revenue
	 	 	Amount	 	 	% to

        Revenue
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Expense	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	8500 · Utilities	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	8501 · Gas	 	 	17,361	 	 	 	0.6	%	 	 	18,336	 	 	 	0.7	%	 	 	(976	)	 	 	-0.7	%	 	 	18,789	 	 	 	0.7	%	 	 	(1,428	)	 	 	-1.4	%	 	 	59,761	 	 	 	0.4	%
	8501.1 · Gas- Affordable
    Housing	 	 	642	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	642	 	 	 	0.4	%	 	 	336	 	 	 	0.0	%	 	 	307	 	 	 	0.3	%	 	 	720	 	 	 	0.0	%
	8502 · Electricity	 	 	45,444	 	 	 	1.6	%	 	 	41,120	 	 	 	1.5	%	 	 	4,324	 	 	 	2.9	%	 	 	36,594	 	 	 	1.3	%	 	 	8,850	 	 	 	8.7	%	 	 	168,568	 	 	 	1.1	%
	8502.1 · Electricity-Affordable Housing	 	 	930	 	 	 	0.0	%	 	 	1,984	 	 	 	0.1	%	 	 	(1,053	)	 	 	-0.7	%	 	 	898	 	 	 	0.0	%	 	 	33	 	 	 	0.0	%	 	 	5,474	 	 	 	0.0	%
	8503 · Water	 	 	15,829	 	 	 	0.6	%	 	 	16,517	 	 	 	0.6	%	 	 	(687	)	 	 	-0.5	%	 	 	15,515	 	 	 	0.6	%	 	 	314	 	 	 	0.3	%	 	 	72,406	 	 	 	0.5	%
	8503.1 · Water- Affordable
    Housing	 	 	362	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	362	 	 	 	0.2	%	 	 	91	 	 	 	0.0	%	 	 	271	 	 	 	0.3	%	 	 	602	 	 	 	0.0	%
	8504 · Sewer	 	 	15,296	 	 	 	0.5	%	 	 	14,784	 	 	 	0.6	%	 	 	512	 	 	 	0.3	%	 	 	14,003	 	 	 	0.5	%	 	 	1,293	 	 	 	1.3	%	 	 	56,468	 	 	 	0.4	%
	8504.1 · Sewer- Affordable
    Housing	 	 	438	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	438	 	 	 	0.3	%	 	 	266	 	 	 	0.0	%	 	 	172	 	 	 	0.2	%	 	 	1,259	 	 	 	0.0	%
	8866 · Trash Removal	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	4,151	 	 	 	0.2	%	 	 	(4,151	)	 	 	-4.1	%	 	 	21,296	 	 	 	0.1	%
	8866C · Trash removal
    - construction	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8866
    · Trash Removal - Other	 	 	4,028	 	 	 	0.1	%	 	 	4,332	 	 	 	0.2	%	 	 	(305	)	 	 	-0.2	%	 	 	-	 	 	 	0.0	%	 	 	4,028	 	 	 	3.9	%	 	 	-	 	 	 	0.0	%
	Total
    8866 · Trash Removal	 	 	4,028	 	 	 	0.1	%	 	 	4,332	 	 	 	0.2	%	 	 	(305	)	 	 	-0.2	%	 	 	4,151	 	 	 	0.2	%	 	 	(124	)	 	 	-0.1	%	 	 	21,296	 	 	 	0.1	%
	Total 8500 · Utilities	 	 	100,331	 	 	 	3.5	%	 	 	97,073	 	 	 	3.6	%	 	 	3,257	 	 	 	2.2	%	 	 	90,643	 	 	 	3.3	%	 	 	9,688	 	 	 	9.5	%	 	 	386,553	 	 	 	2.5	%
	Total Expense	 	 	100,331	 	 	 	3.5	%	 	 	97,073	 	 	 	3.6	%	 	 	3,257	 	 	 	2.2	%	 	 	90,643	 	 	 	3.3	%	 	 	9,688	 	 	 	9.5	%	 	 	386,553	 	 	 	2.5	%
	Net Income	 	 	(100,331	)	 	 	-3.5	%	 	 	(97,073	)	 	 	492357.0	%	 	 	(3,257	)	 	 	-2.2	%	 	 	(90,643	)	 	 	-3.3	%	 	 	(9,688	)	 	 	-9.5	%	 	 	(386,553	)	 	 	-2.5	%

  

	 	Page 20 of 23	109.1. Ex 18(a)- 1st Part - L'Auberge_Resort March 13 Issue

 

 

    	 

    	 

     

	6:36 PM	L'Auberge de Sedona, LLC.	 
	11/11/11	Utilities Department	 
	Accrual Basis	January through March 2013	 

 

	 	 	Jan 13	 	 	Feb 13	 	 	Mar 13	 	 	TOTAL	 
	Ordinary Income/Expense	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Expense	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	8500 · Utilities	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	8501 · Gas	 	 	6,667.15	 	 	 	5,775.11	 	 	 	4,918.55	 	 	 	17,360.81	 
	8501.1 · Gas- Affordable Housing	 	 	236.63	 	 	 	0.00	 	 	 	405.65	 	 	 	642.28	 
	8502 · Electricity	 	 	16,937.16	 	 	 	16,393.51	 	 	 	12,113.59	 	 	 	45,444.26	 
	8502.1 · Electricity-Affordable Housing	 	 	417.94	 	 	 	236.12	 	 	 	276.42	 	 	 	930.48	 
	8503 · Water	 	 	5,223.26	 	 	 	5,376.39	 	 	 	5,229.55	 	 	 	15,829.20	 
	8503.1 · Water- Affordable Housing	 	 	139.37	 	 	 	0.00	 	 	 	222.72	 	 	 	362.09	 
	8504 · Sewer	 	 	5,124.33	 	 	 	6,712.93	 	 	 	3,458.78	 	 	 	15,296.04	 
	8504.1 · Sewer- Affordable Housing	 	 	145.98	 	 	 	145.98	 	 	 	145.98	 	 	 	437.94	 
	8866 · Trash Removal	 	 	1,209.93	 	 	 	1,618.51	 	 	 	1,199.12	 	 	 	4,027.56	 
	Total 8500 · Utilities	 	 	36,101.75	 	 	 	36,258.55	 	 	 	27,970.36	 	 	 	100,330.66	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Expense	 	 	36,101.75	 	 	 	36,258.55	 	 	 	27,970.36	 	 	 	100,330.66	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Net Ordinary Income	 	 	-36,101.75	 	 	 	-36,258.55	 	 	 	-27,970.36	 	 	 	-100,330.66	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Net Income	 	 	-36,101.75	 	 	 	-36,258.55	 	 	 	-27,970.36	 	 	 	-100,330.66	 

 

 

	 	Page 21 of 23	 

 

 

    	 

    	 

     

L'Auberge de Sedona Resort

Fixed Expenses Department

Actual vs. Budget and Prior Year

March 2013

 

	 	 	 	 
	 	 	Current Month	 
	 	 	Actual	 	 	% to

        Revenue
	 	 	Budget	 	 	% to

        Revenue
	 	 	Variance	 	 	% to

        Revenue
	 	 	Prior Year	 	 	% to

        Revenue
	 	 	Variance	 	 	% to

        Revenue
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Expense	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Other Expense	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9100 · Fixed Expenses	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9101 ·
    Property Taxes	 	 	10,340	 	 	 	0.7	%	 	 	10,340	 	 	 	0.8	%	 	 	-	 	 	 	0.0	%	 	 	9,621	 	 	 	0.8	%	 	 	719	 	 	 	0.4	%
	9102 · Rent	 	 	2,207	 	 	 	0.2	%	 	 	2,207	 	 	 	0.2	%	 	 	-	 	 	 	0.0	%	 	 	900	 	 	 	0.1	%	 	 	1,307	 	 	 	0.7	%
	9103 · Personal Property
    Tax	 	 	1,364	 	 	 	0.1	%	 	 	1,364	 	 	 	0.1	%	 	 	-	 	 	 	0.0	%	 	 	761	 	 	 	0.1	%	 	 	603	 	 	 	0.3	%
	9104 · Insurance	 	 	15,862	 	 	 	1.1	%	 	 	17,194	 	 	 	1.3	%	 	 	(1,332	)	 	 	-0.8	%	 	 	13,752	 	 	 	1.1	%	 	 	2,110	 	 	 	1.1	%
	9104.1 · Insurance-
    Affordable Housing	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	358	 	 	 	0.0	%	 	 	(358	)	 	 	-0.2	%
	9105
    · Equipment Lease Expense	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	Total 9100 · Fixed
    Expenses	 	 	29,772	 	 	 	2.0	%	 	 	31,104	 	 	 	2.4	%	 	 	(1,332	)	 	 	-0.8	%	 	 	25,392	 	 	 	2.0	%	 	 	4,381	 	 	 	2.2	%
	Total Other Expense	 	 	29,772	 	 	 	2.0	%	 	 	31,104	 	 	 	2.4	%	 	 	(1,332	)	 	 	-0.8	%	 	 	25,392	 	 	 	2.0	%	 	 	4,381	 	 	 	2.2	%
	Net Income	 	 	(29,772	)	 	 	-2.0	%	 	 	(31,104	)	 	 	-2.4	%	 	 	1,332	 	 	 	0.8	%	 	 	(25,392	)	 	 	-2.0	%	 	 	(4,381	)	 	 	-2.2	%

 

	 	 	 	 	 	Budget	 
	 	 	Year to Date	 	 	Full Year	 
	 	 	Actual	 	 	% to

        Revenue
	 	 	Budget	 	 	% to

        Revenue
	 	 	Variance	 	 	% to

        Revenue
	 	 	Prior Year	 	 	% to

        Revenue
	 	 	Variance	 	 	% to

        Revenue
	 	 	Amount	 	 	% to

        Revenue
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Expense	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Other Expense	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9100 · Fixed Expenses	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9101 ·
    Property Taxes	 	 	31,020	 	 	 	1.1	%	 	 	31,020	 	 	 	1.2	%	 	 	-	 	 	 	0.0	%	 	 	28,863	 	 	 	1.1	%	 	 	2,157	 	 	 	2.1	%	 	 	129,340	 	 	 	0.8	%
	9102 · Rent	 	 	6,620	 	 	 	0.2	%	 	 	6,620	 	 	 	0.2	%	 	 	-	 	 	 	0.0	%	 	 	900	 	 	 	0.0	%	 	 	5,720	 	 	 	5.6	%	 	 	1,557	 	 	 	0.0	%
	9103 · Personal Property
    Tax	 	 	4,092	 	 	 	0.1	%	 	 	4,092	 	 	 	0.2	%	 	 	-	 	 	 	0.0	%	 	 	2,283	 	 	 	0.1	%	 	 	1,809	 	 	 	1.8	%	 	 	9,132	 	 	 	0.1	%
	9104 · Insurance	 	 	50,326	 	 	 	1.8	%	 	 	50,249	 	 	 	1.9	%	 	 	77	 	 	 	0.1	%	 	 	44,575	 	 	 	1.6	%	 	 	5,751	 	 	 	5.6	%	 	 	160,313	 	 	 	1.0	%
	9104.1 · Insurance-
    Affordable Housing	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	1,074	 	 	 	0.0	%	 	 	(1,074	)	 	 	-1.1	%	 	 	4,298	 	 	 	0.0	%
	9105
    · Equipment Lease Expense	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	Total 9100 · Fixed
    Expenses	 	 	92,057	 	 	 	3.3	%	 	 	91,981	 	 	 	3.4	%	 	 	77	 	 	 	0.1	%	 	 	77,696	 	 	 	2.9	%	 	 	14,362	 	 	 	14.0	%	 	 	304,640	 	 	 	1.9	%
	Total Other Expense	 	 	92,057	 	 	 	3.3	%	 	 	91,981	 	 	 	3.4	%	 	 	77	 	 	 	0.1	%	 	 	77,696	 	 	 	2.9	%	 	 	14,362	 	 	 	14.0	%	 	 	304,640	 	 	 	1.9	%
	Net Income	 	 	(92,057	)	 	 	-3.3	%	 	 	(91,981	)	 	 	-3.4	%	 	 	(77	)	 	 	-0.1	%	 	 	(77,696	)	 	 	-2.9	%	 	 	(14,362	)	 	 	-14.0	%	 	 	(304,640	)	 	 	-1.9	%

 

 

 

 

	 	Page 22 of 23	109.1. Ex 18(a)- 1st Part - L'Auberge_Resort March 13 Issue

 

 

    	 

    	 

     

	3:35 PM	L'Auberge de Sedona, LLC.	 
	04/10/12	Fixed Expenses	 
	Accrual Basis	January through March 2013	 

 

	 	 	Jan 13	 	 	Feb 13	 	 	Mar 13	 	 	TOTAL	 
	Other Income/Expense	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Other Expense	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9000 · Owners Expense	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9050 · Life Insurance - Al Spector	 	 	12,271.25	 	 	 	12,271.25	 	 	 	12,271.25	 	 	 	36,813.75	 
	Total 9000 · Owners Expense	 	 	12,271.25	 	 	 	12,271.25	 	 	 	12,271.25	 	 	 	36,813.75	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9100 · Fixed Expenses	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9101 · Property Taxes	 	 	10,339.95	 	 	 	10,339.95	 	 	 	10,339.95	 	 	 	31,019.85	 
	9102 · Rent	 	 	2,206.67	 	 	 	2,206.67	 	 	 	2,206.67	 	 	 	6,620.01	 
	9103 · Personal Property Tax	 	 	1,363.95	 	 	 	1,363.95	 	 	 	1,363.95	 	 	 	4,091.85	 
	9104 · Insurance	 	 	15,861.57	 	 	 	18,602.21	 	 	 	15,861.87	 	 	 	50,325.65	 
	Total 9100 · Fixed Expenses	 	 	29,772.14	 	 	 	32,512.78	 	 	 	29,772.44	 	 	 	92,057.36	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Other Expense	 	 	42,043.39	 	 	 	44,784.03	 	 	 	42,043.69	 	 	 	128,871.11	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Net Other Income	 	 	-42,043.39	 	 	 	-44,784.03	 	 	 	-42,043.69	 	 	 	-128,871.11	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Net Income	 	 	-42,043.39	 	 	 	-44,784.03	 	 	 	-42,043.69	 	 	 	-128,871.11	 

 

 

	 	Page 23 of 23	 

 

 

    	 

    	 

     

	Orchards Inn and Restaurant	 
	Profit and Loss Statement	 
	March 2013	 

 

	 	 	Current Month	 
	 	 	Actual	 	 	%
    to 
Revenue	 	 	Budget	 	 	%
    to 
Revenue	 	 	Variance	 	 	%
    to 
Revenue	 	 	Prior
    Year	 	 	%
    to 
Revenue	 	 	Variance	 	 	%
    to 
Revenue	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Rooms Available	 	 	1,302	 	 	 	 	 	 	 	1,302	 	 	 	 	 	 	 	-	 	 	 	 	 	 	 	1,302	 	 	 	 	 	 	 	-	 	 	 	 	 
	Occupied Rooms	 	 	1,246	 	 	 	 	 	 	 	1,211	 	 	 	 	 	 	 	35	 	 	 	 	 	 	 	1,248	 	 	 	 	 	 	 	(2	)	 	 	 	 
	Occupancy	 	 	95.7	%	 	 	 	 	 	 	93.0	%	 	 	 	 	 	 	2.9	%	 	 	 	 	 	 	95.9	%	 	 	 	 	 	 	-0.2	%	 	 	 	 
	Average Daily Rate (ADR)	 	$	163.18	 	 	 	 	 	 	$	165.00	 	 	 	 	 	 	$	(1.82	)	 	 	 	 	 	$	155.07	 	 	 	 	 	 	$	8.10	 	 	 	 	 
	Revenue/Available Room (REVPAR)	 	$	156.16	 	 	 	 	 	 	$	153.47	 	 	 	 	 	 	$	2.69	 	 	 	 	 	 	$	148.64	 	 	 	 	 	 	$	7.52	 	 	 	 	 
	Gross Revenue/Room	 	$	412.36	 	 	 	 	 	 	$	359.69	 	 	 	 	 	 	$	52.67	 	 	 	 	 	 	$	331.08	 	 	 	 	 	 	$	81.27	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Revenues	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Rooms	 	 	203,317	 	 	 	39.6	%	 	 	199,815	 	 	 	45.9	%	 	 	3,502	 	 	 	4.5	%	 	 	193,532	 	 	 	46.8	%	 	 	9,785	 	 	 	9.7	%
	Food & Beverage	 	 	309,641	 	 	 	60.3	%	 	 	235,000	 	 	 	54.0	%	 	 	74,641	 	 	 	95.4	%	 	 	218,915	 	 	 	53.0	%	 	 	90,725	 	 	 	90.2	%
	Miscellaneous	 	 	841	 	 	 	0.2	%	 	 	768	 	 	 	0.2	%	 	 	73	 	 	 	0.1	%	 	 	746	 	 	 	0.2	%	 	 	96	 	 	 	0.1	%
	Total Revenues	 	 	513,799	 	 	 	100.0	%	 	 	435,583	 	 	 	100.0	%	 	 	78,216	 	 	 	100.0	%	 	 	413,193	 	 	 	100.0	%	 	 	100,606	 	 	 	100.0	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Department Expenses	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Rooms	 	 	65,323	 	 	 	32.1	%	 	 	56,414	 	 	 	28.2	%	 	 	8,909	 	 	 	254.4	%	 	 	53,891	 	 	 	27.8	%	 	 	11,432	 	 	 	116.8	%
	Food & Beverage	 	 	181,040	 	 	 	58.5	%	 	 	152,574	 	 	 	64.9	%	 	 	28,466	 	 	 	38.1	%	 	 	124,162	 	 	 	56.7	%	 	 	56,878	 	 	 	62.7	%
	Miscellaneous	 	 	417	 	 	 	49.6	%	 	 	660	 	 	 	85.9	%	 	 	(243	)	 	 	-330.6	%	 	 	641	 	 	 	85.9	%	 	 	(223	)	 	 	-233.1	%
	Total Department Expenses	 	 	246,780	 	 	 	48.0	%	 	 	209,648	 	 	 	48.1	%	 	 	37,132	 	 	 	47.5	%	 	 	178,693	 	 	 	43.2	%	 	 	68,086	 	 	 	67.7	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Departmental Profit	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Rooms	 	 	137,994	 	 	 	67.9	%	 	 	143,401	 	 	 	71.8	%	 	 	(5,407	)	 	 	-154.4	%	 	 	139,641	 	 	 	72.2	%	 	 	(1,647	)	 	 	-16.8	%
	Food & Beverage	 	 	128,601	 	 	 	41.5	%	 	 	82,426	 	 	 	35.1	%	 	 	46,175	 	 	 	61.9	%	 	 	94,753	 	 	 	43.3	%	 	 	33,848	 	 	 	37.3	%
	Miscellaneous	 	 	424	 	 	 	50.4	%	 	 	108	 	 	 	14.1	%	 	 	316	 	 	 	430.6	%	 	 	105	 	 	 	14.1	%	 	 	319	 	 	 	333.1	%
	Total Departmental Profit	 	 	267,019	 	 	 	52.0	%	 	 	225,935	 	 	 	51.9	%	 	 	41,084	 	 	 	52.5	%	 	 	234,499	 	 	 	56.8	%	 	 	32,520	 	 	 	32.3	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Undistributed Expenses	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Management Fees	 	 	10,276	 	 	 	2.0	%	 	 	8,712	 	 	 	2.0	%	 	 	1,564	 	 	 	2.0	%	 	 	8,222	 	 	 	2.0	%	 	 	2,054	 	 	 	2.0	%
	Administrative & General	 	 	20,182	 	 	 	3.9	%	 	 	22,338	 	 	 	5.1	%	 	 	(2,156	)	 	 	-2.8	%	 	 	24,550	 	 	 	5.9	%	 	 	(4,367	)	 	 	-4.3	%
	Sales & Marketing	 	 	1,947	 	 	 	0.4	%	 	 	4,086	 	 	 	0.9	%	 	 	(2,139	)	 	 	-2.7	%	 	 	3,891	 	 	 	0.9	%	 	 	(1,944	)	 	 	-1.9	%
	Engineering	 	 	17,721	 	 	 	3.4	%	 	 	12,505	 	 	 	2.9	%	 	 	5,216	 	 	 	6.7	%	 	 	15,524	 	 	 	3.8	%	 	 	2,197	 	 	 	2.2	%
	Utilities	 	 	11,397	 	 	 	2.2	%	 	 	13,610	 	 	 	3.1	%	 	 	(2,213	)	 	 	-2.8	%	 	 	12,962	 	 	 	3.1	%	 	 	(1,565	)	 	 	-1.6	%
	Total Undistributed Expenses	 	 	61,522	 	 	 	12.0	%	 	 	61,251	 	 	 	14.1	%	 	 	271	 	 	 	0.3	%	 	 	65,148	 	 	 	15.8	%	 	 	(3,626	)	 	 	-3.6	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Gross Operating Profit	 	 	205,497	 	 	 	40.0	%	 	 	164,684	 	 	 	37.8	%	 	 	40,813	 	 	 	52.2	%	 	 	169,351	 	 	 	41.0	%	 	 	36,146	 	 	 	35.9	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Fixed Expenses	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Property Taxes	 	 	3,858	 	 	 	0.8	%	 	 	3,858	 	 	 	0.9	%	 	 	0	 	 	 	0.0	%	 	 	5,669	 	 	 	1.4	%	 	 	(1,811	)	 	 	-1.8	%
	Rent	 	 	4,009	 	 	 	0.8	%	 	 	4,114	 	 	 	0.9	%	 	 	(105	)	 	 	-0.1	%	 	 	1,464	 	 	 	0.4	%	 	 	2,545	 	 	 	2.5	%
	Insurance	 	 	2,678	 	 	 	0.5	%	 	 	2,678	 	 	 	0.6	%	 	 	(0	)	 	 	0.0	%	 	 	2,167	 	 	 	0.5	%	 	 	511	 	 	 	0.5	%
	Total Fixed Expenses	 	 	10,545	 	 	 	2.1	%	 	 	10,650	 	 	 	2.4	%	 	 	(105	)	 	 	-0.1	%	 	 	9,299	 	 	 	2.3	%	 	 	1,245	 	 	 	1.2	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Income Before Reserves	 	 	194,952	 	 	 	37.9	%	 	 	154,034	 	 	 	35.4	%	 	 	40,918	 	 	 	52.3	%	 	 	160,052	 	 	 	38.7	%	 	 	34,900	 	 	 	34.7	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Reserve for Replacement	 	 	20,552	 	 	 	4.0	%	 	 	17,423	 	 	 	4.0	%	 	 	3,129	 	 	 	4.0	%	 	 	16,528	 	 	 	4.0	%	 	 	4,024	 	 	 	4.0	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Net
    Operating Income	 	 	174,400	 	 	 	33.9	%	 	 	136,611	 	 	 	31.4	%	 	 	37,789	 	 	 	48.3	%	 	 	143,524	 	 	 	34.7	%	 	 	30,876	 	 	 	30.7	%

 

	 	 	Year to Date	 	 	Budget

    Full Year	 
	 	 	Actual	 	 	%
    to 
Revenue	 	 	Budget	 	 	%
    to 
Revenue	 	 	Variance	 	 	%
    to 
Revenue	 	 	Prior
    Year	 	 	%
    to 
Revenue	 	 	Variance	 	 	%
    to 
Revenue	 	 	Amount	 	 	%	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Rooms Available	 	 	3,780	 	 	 	 	 	 	 	3,780	 	 	 	 	 	 	 	-	 	 	 	 	 	 	 	3,822	 	 	 	 	 	 	 	(42	)	 	 	 	 	 	 	15,330	 	 	 	 	 
	Occupied Rooms	 	 	3,062	 	 	 	 	 	 	 	2,999	 	 	 	 	 	 	 	63	 	 	 	 	 	 	 	3,372	 	 	 	 	 	 	 	(310	)	 	 	 	 	 	 	12,707	 	 	 	 	 
	Occupancy	 	 	81.0	%	 	 	 	 	 	 	79.3	%	 	 	 	 	 	 	2.1	%	 	 	 	 	 	 	88.2	%	 	 	 	 	 	 	-9.2	%	 	 	 	 	 	 	82.9	%	 	 	 	 
	Average Daily Rate (ADR)	 	$	141.68	 	 	 	 	 	 	$	141.94	 	 	 	 	 	 	$	(0.26	)	 	 	 	 	 	$	131.41	 	 	 	 	 	 	$	10.27	 	 	 	 	 	 	$	149.22	 	 	 	 	 
	Revenue/Available Room (REVPAR)	 	$	114.77	 	 	 	 	 	 	$	112.61	 	 	 	 	 	 	$	2.15	 	 	 	 	 	 	$	115.93	 	 	 	 	 	 	$	(1.17	)	 	 	 	 	 	$	123.68	 	 	 	 	 
	Gross Revenue/Room	 	$	320.42	 	 	 	 	 	 	$	296.66	 	 	 	 	 	 	$	23.76	 	 	 	 	 	 	$	251.39	 	 	 	 	 	 	$	69.03	 	 	 	 	 	 	$	330.15	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Revenues	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Rooms	 	 	433,824	 	 	 	44.2	%	 	 	425,684	 	 	 	47.8	%	 	 	8,140	 	 	 	8.9	%	 	 	443,103	 	 	 	52.3	%	 	 	(9,279	)	 	 	-7.0	%	 	 	1,896,084	 	 	 	45.2	%
	Food & Beverage	 	 	543,914	 	 	 	55.4	%	 	 	460,203	 	 	 	51.7	%	 	 	83,711	 	 	 	91.5	%	 	 	401,884	 	 	 	47.4	%	 	 	142,030	 	 	 	106.4	%	 	 	2,283,158	 	 	 	54.4	%
	Miscellaneous	 	 	3,402	 	 	 	0.3	%	 	 	3,800	 	 	 	0.4	%	 	 	(398	)	 	 	-0.4	%	 	 	2,701	 	 	 	0.3	%	 	 	701	 	 	 	0.5	%	 	 	15,921	 	 	 	0.4	%
	Total Revenues	 	 	981,140	 	 	 	100.0	%	 	 	889,687	 	 	 	100.0	%	 	 	91,453	 	 	 	100.0	%	 	 	847,688	 	 	 	100.0	%	 	 	133,452	 	 	 	100.0	%	 	 	4,195,163	 	 	 	100.0	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Department Expenses	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Rooms	 	 	156,471	 	 	 	36.1	%	 	 	148,905	 	 	 	35.0	%	 	 	7,566	 	 	 	92.9	%	 	 	144,261	 	 	 	32.6	%	 	 	12,210	 	 	 	-131.6	%	 	 	578,522	 	 	 	30.5	%
	Food & Beverage	 	 	371,012	 	 	 	68.2	%	 	 	333,149	 	 	 	72.4	%	 	 	37,863	 	 	 	45.2	%	 	 	261,556	 	 	 	65.1	%	 	 	109,456	 	 	 	77.1	%	 	 	1,546,429	 	 	 	67.7	%
	Miscellaneous	 	 	1,027	 	 	 	30.2	%	 	 	1,454	 	 	 	38.3	%	 	 	(427	)	 	 	107.3	%	 	 	1,734	 	 	 	64.2	%	 	 	(707	)	 	 	-100.8	%	 	 	8,189	 	 	 	51.4	%
	Total Department Expenses	 	 	528,510	 	 	 	53.9	%	 	 	483,508	 	 	 	54.3	%	 	 	45,002	 	 	 	49.2	%	 	 	407,551	 	 	 	48.1	%	 	 	120,959	 	 	 	90.6	%	 	 	2,133,140	 	 	 	50.8	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Departmental Profit	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Rooms	 	 	277,353	 	 	 	63.9	%	 	 	276,779	 	 	 	65.0	%	 	 	574	 	 	 	7.1	%	 	 	298,842	 	 	 	67.4	%	 	 	(21,489	)	 	 	231.6	%	 	 	1,317,561	 	 	 	69.5	%
	Food & Beverage	 	 	172,902	 	 	 	31.8	%	 	 	127,054	 	 	 	27.6	%	 	 	45,848	 	 	 	54.8	%	 	 	140,328	 	 	 	34.9	%	 	 	32,573	 	 	 	22.9	%	 	 	736,729	 	 	 	32.3	%
	Miscellaneous	 	 	2,375	 	 	 	69.8	%	 	 	2,346	 	 	 	61.7	%	 	 	29	 	 	 	-7.3	%	 	 	967	 	 	 	35.8	%	 	 	1,408	 	 	 	200.8	%	 	 	7,732	 	 	 	48.6	%
	Total Departmental Profit	 	 	452,630	 	 	 	46.1	%	 	 	406,179	 	 	 	45.7	%	 	 	46,451	 	 	 	50.8	%	 	 	440,137	 	 	 	51.9	%	 	 	12,493	 	 	 	9.4	%	 	 	2,062,023	 	 	 	49.2	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Undistributed Expenses	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Management Fees	 	 	19,623	 	 	 	2.0	%	 	 	17,794	 	 	 	2.0	%	 	 	1,829	 	 	 	2.0	%	 	 	16,912	 	 	 	2.0	%	 	 	2,711	 	 	 	2.0	%	 	 	83,903	 	 	 	2.0	%
	Administrative & General	 	 	54,855	 	 	 	5.6	%	 	 	59,688	 	 	 	6.7	%	 	 	(4,833	)	 	 	-5.3	%	 	 	56,821	 	 	 	6.7	%	 	 	(1,966	)	 	 	-1.5	%	 	 	234,112	 	 	 	5.6	%
	Sales & Marketing	 	 	6,048	 	 	 	0.6	%	 	 	8,212	 	 	 	0.9	%	 	 	(2,164	)	 	 	-2.4	%	 	 	7,184	 	 	 	0.8	%	 	 	(1,136	)	 	 	-0.9	%	 	 	39,667	 	 	 	0.9	%
	Engineering	 	 	48,929	 	 	 	5.0	%	 	 	41,834	 	 	 	4.7	%	 	 	7,095	 	 	 	7.8	%	 	 	41,388	 	 	 	4.9	%	 	 	7,540	 	 	 	5.7	%	 	 	173,817	 	 	 	4.1	%
	Utilities	 	 	35,810	 	 	 	3.6	%	 	 	40,731	 	 	 	4.6	%	 	 	(4,921	)	 	 	-5.4	%	 	 	38,807	 	 	 	4.6	%	 	 	(2,997	)	 	 	-2.2	%	 	 	151,447	 	 	 	3.6	%
	Total Undistributed Expenses	 	 	165,265	 	 	 	16.8	%	 	 	168,259	 	 	 	18.9	%	 	 	(2,994	)	 	 	-3.3	%	 	 	161,112	 	 	 	19.0	%	 	 	4,153	 	 	 	3.1	%	 	 	682,946	 	 	 	16.3	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Gross Operating Profit	 	 	287,365	 	 	 	29.3	%	 	 	237,920	 	 	 	26.7	%	 	 	49,445	 	 	 	54.1	%	 	 	279,024	 	 	 	32.9	%	 	 	8,340	 	 	 	6.2	%	 	 	1,379,077	 	 	 	32.9	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Fixed Expenses	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Property Taxes	 	 	11,574	 	 	 	1.2	%	 	 	11,574	 	 	 	1.3	%	 	 	0	 	 	 	0.0	%	 	 	17,007	 	 	 	2.0	%	 	 	(5,433	)	 	 	-4.1	%	 	 	94,416	 	 	 	2.3	%
	Rent	 	 	12,237	 	 	 	1.2	%	 	 	12,342	 	 	 	1.4	%	 	 	(106	)	 	 	-0.1	%	 	 	2,404	 	 	 	0.3	%	 	 	9,832	 	 	 	7.4	%	 	 	-	 	 	 	0.0	%
	Insurance	 	 	8,034	 	 	 	0.8	%	 	 	8,034	 	 	 	0.9	%	 	 	(0	)	 	 	0.0	%	 	 	6,500	 	 	 	0.8	%	 	 	1,534	 	 	 	1.1	%	 	 	32,136	 	 	 	0.8	%
	Total Fixed Expenses	 	 	31,845	 	 	 	3.2	%	 	 	31,950	 	 	 	3.6	%	 	 	(105	)	 	 	-0.1	%	 	 	25,911	 	 	 	3.1	%	 	 	5,933	 	 	 	4.4	%	 	 	126,552	 	 	 	3.0	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Income Before Reserves	 	 	255,520	 	 	 	26.0	%	 	 	205,970	 	 	 	23.2	%	 	 	49,550	 	 	 	54.2	%	 	 	253,113	 	 	 	29.9	%	 	 	2,407	 	 	 	1.8	%	 	 	1,252,525	 	 	 	29.9	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Reserve for Replacement	 	 	39,246	 	 	 	4.0	%	 	 	35,587	 	 	 	4.0	%	 	 	3,659	 	 	 	4.0	%	 	 	33,908	 	 	 	4.0	%	 	 	5,338	 	 	 	4.0	%	 	 	167,806	 	 	 	4.0	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Net
    Operating Income	 	 	216,274	 	 	 	22.0	%	 	 	170,383	 	 	 	19.2	%	 	 	45,891	 	 	 	50.2	%	 	 	219,206	 	 	 	25.9	%	 	 	(2,931	)	 	 	-2.2	%	 	 	1,084,719	 	 	 	25.9	%

 

	 	Page 1 of 21	109.2. Ex 18(a)- 2nd Part - Orchards Inn March 13 Issue / Report

 

 

 

    	 	 	 

    	 

     

 

Orchards Inn and Restaurant

Current Year Actual

2012 

 

 

	Current Year - 2013	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Year to Date	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	January	 	 	February	 	 	March	 	 	Total Year	 
	 	 	Amount	 	 	POR	 	 	Amount	 	 	POR	 	 	Amount	 	 	POR	 	 	Amount	 	 	POR	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Rooms Available	 	 	1,302	 	 	 	 	 	 	 	1,176	 	 	 	 	 	 	 	1,302	 	 	 	 	 	 	 	3,780	 	 	 	 	 
	Occupied Rooms	 	 	824	 	 	 	 	 	 	 	992	 	 	 	 	 	 	 	1,246	 	 	 	 	 	 	 	3,062	 	 	 	 	 
	Occupancy	 	 	63.3	%	 	 	 	 	 	 	84.4	%	 	 	 	 	 	 	95.7	%	 	 	 	 	 	 	81.0	%	 	 	 	 
	 Average Daily Rate (ADR)	 	$	122.03	 	 	 	 	 	 	$	131.01	 	 	 	 	 	 	$	163.18	 	 	 	 	 	 	$	141.68	 	 	 	 	 
	 Revenue/Available Room (REVPAR)	 	$	77.23	 	 	 	 	 	 	$	110.51	 	 	 	 	 	 	$	156.16	 	 	 	 	 	 	$	114.77	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Revenues	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Rooms	 	 	100,549	 	 	$	170.95	 	 	 	129,959	 	 	$	131.01	 	 	 	203,317	 	 	$	163.18	 	 	 	433,824	 	 	$	141.68	 
	Food & Beverage	 	 	95,203	 	 	$	139.99	 	 	 	139,070	 	 	$	140.19	 	 	 	309,641	 	 	$	248.51	 	 	 	543,914	 	 	$	177.63	 
	Miscellaneous	 	 	2,032	 	 	$	1.92	 	 	 	529	 	 	$	0.53	 	 	 	841	 	 	$	0.68	 	 	 	3,402	 	 	$	1.11	 
	Total Revenues	 	 	197,784	 	 	$	312.86	 	 	 	269,558	 	 	$	271.73	 	 	 	513,799	 	 	$	412.36	 	 	 	981,140	 	 	$	320.42	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Department Expenses	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Rooms	 	 	44,035	 	 	$	58.52	 	 	 	47,114	 	 	$	47.49	 	 	 	65,323	 	 	$	52.43	 	 	 	156,471	 	 	$	51.10	 
	Food & Beverage	 	 	85,178	 	 	$	115.06	 	 	 	104,795	 	 	$	105.64	 	 	 	181,040	 	 	$	145.30	 	 	 	371,012	 	 	$	121.17	 
	Miscellaneous	 	 	294	 	 	$	0.62	 	 	 	316	 	 	$	0.32	 	 	 	417	 	 	$	0.33	 	 	 	1,027	 	 	$	0.34	 
	Total Department Expenses	 	 	129,506	 	 	$	174.21	 	 	 	152,225	 	 	$	153.45	 	 	 	246,780	 	 	$	198.06	 	 	 	528,510	 	 	$	172.60	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Departmental Profit	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Rooms	 	 	56,514	 	 	$	112.43	 	 	 	82,845	 	 	$	83.51	 	 	 	137,994	 	 	$	110.75	 	 	 	277,353	 	 	$	90.58	 
	Food & Beverage	 	 	10,025	 	 	$	24.93	 	 	 	34,275	 	 	$	34.55	 	 	 	128,601	 	 	$	103.21	 	 	 	172,902	 	 	$	56.47	 
	Miscellaneous	 	 	1,738	 	 	$	1.30	 	 	 	213	 	 	$	0.21	 	 	 	424	 	 	$	0.34	 	 	 	2,375	 	 	$	0.78	 
	Total Departmental Profit	 	 	68,277	 	 	$	138.65	 	 	 	117,334	 	 	$	118.28	 	 	 	267,019	 	 	$	214.30	 	 	 	452,630	 	 	$	147.82	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Undistributed Expenses	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Management Fees	 	 	3,956	 	 	$	6.26	 	 	 	5,391	 	 	$	5.43	 	 	 	10,276	 	 	$	8.25	 	 	 	19,623	 	 	$	6.41	 
	Administrative & General	 	 	17,935	 	 	$	20.89	 	 	 	16,737	 	 	$	16.87	 	 	 	20,182	 	 	$	16.20	 	 	 	54,855	 	 	$	17.91	 
	Sales & Marketing	 	 	2,207	 	 	$	3.51	 	 	 	1,895	 	 	$	1.91	 	 	 	1,947	 	 	$	1.56	 	 	 	6,048	 	 	$	1.98	 
	Engineering	 	 	16,188	 	 	$	16.36	 	 	 	15,020	 	 	$	15.14	 	 	 	17,721	 	 	$	14.22	 	 	 	48,929	 	 	$	15.98	 
	Utilities	 	 	14,015	 	 	$	17.69	 	 	 	10,398	 	 	$	10.48	 	 	 	11,397	 	 	$	9.15	 	 	 	35,810	 	 	$	11.70	 
	Total Undistributed Expenses	 	 	54,301	 	 	$	64.71	 	 	 	49,442	 	 	$	49.84	 	 	 	61,522	 	 	$	49.38	 	 	 	165,265	 	 	$	53.97	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Gross Operating Profit	 	 	13,976	 	 	$	73.94	 	 	 	67,892	 	 	$	68.44	 	 	 	205,497	 	 	$	164.93	 	 	 	287,365	 	 	$	93.85	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Fixed Expenses	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Property Taxes	 	 	3,858	 	 	$	3.88	 	 	 	3,858	 	 	$	3.89	 	 	 	3,858	 	 	$	3.10	 	 	 	11,574	 	 	$	3.78	 
	Rent	 	 	4,114	 	 	$	4.71	 	 	 	4,114	 	 	$	4.15	 	 	 	4,009	 	 	$	3.22	 	 	 	12,237	 	 	$	4.00	 
	Insurance	 	 	2,678	 	 	$	6.32	 	 	 	2,678	 	 	$	2.70	 	 	 	2,678	 	 	$	2.15	 	 	 	8,034	 	 	$	2.62	 
	Total Fixed Expenses	 	 	10,650	 	 	$	14.91	 	 	 	10,650	 	 	$	10.74	 	 	 	10,545	 	 	$	8.46	 	 	 	31,845	 	 	$	10.40	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Income Before Reserves	 	 	3,326	 	 	$	59.03	 	 	 	57,242	 	 	$	57.70	 	 	 	194,952	 	 	$	156.46	 	 	 	255,520	 	 	$	83.45	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Reserve for Replacement	 	 	7,911	 	 	$	12.51	 	 	 	10,782	 	 	$	10.87	 	 	 	20,552	 	 	$	16.49	 	 	 	39,246	 	 	$	12.82	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Net Operating Income	 	 	(4,585	)	 	$	46.52	 	 	 	46,459	 	 	$	46.83	 	 	 	174,400	 	 	$	139.97	 	 	 	216,274	 	 	$	70.63	 

 

 

	 	Page 2 of 21	109.2. Ex 18(a)- 2nd Part - Orchards Inn March 13 Issue / Current YTD

 

 

 

    	 	 	 

    	 

     

 

Orchards Inn and Restaurant

Current Year Budget

2012

 

	Budget - 2013	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Year
                                                                                  to Date	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	January	 	 	February	 	 	March	 	 	April	 	 	May	 	 	June	 	 	July	 
	 	 	Amount	 	 	Amount	 	 	Amount	 	 	Amount	 	 	Amount	 	 	Amount	 	 	Amount	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Available Room Nights	 	 	1,302	 	 	 	1,176	 	 	 	1,302	 	 	 	1,260	 	 	 	1,302	 	 	 	1,260	 	 	 	1,302	 
	Occupied Rooms - Revenue	 	 	824	 	 	 	964	 	 	 	1,211	 	 	 	1,172	 	 	 	1,211	 	 	 	1,109	 	 	 	1,041	 
	Occupied Rooms - With Comps	 	 	824	 	 	 	964	 	 	 	1,211	 	 	 	1,172	 	 	 	1,211	 	 	 	1,109	 	 	 	1,041	 
	Occupancy	 	 	63.3	%	 	 	82.0	%	 	 	93.0	%	 	 	93.0	%	 	 	93.0	%	 	 	88.0	%	 	 	80.0	%
	 Average Daily Rate (ADR)	 	$	110.13	 	 	$	120.01	 	 	$	160.04	 	 	$	175.00	 	 	$	170.00	 	 	$	155.00	 	 	$	130.07	 
	 Revenue/Available Room (REVPAR)	 	$	60.56	 	 	$	83.99	 	 	$	136.07	 	 	$	162.78	 	 	$	158.12	 	 	$	136.42	 	 	$	104.00	 
	 F&B POR	 	$	99.00	 	 	$	122.50	 	 	$	172.50	 	 	$	226.11	 	 	$	214.70	 	 	$	216.41	 	 	$	190.00	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Revenues	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Rooms	 	 	100,549	 	 	 	125,320	 	 	 	199,815	 	 	 	205,100	 	 	 	205,870	 	 	 	171,895	 	 	 	135,404	 
	Food & Beverage	 	 	95,203	 	 	 	130,000	 	 	 	235,000	 	 	 	265,000	 	 	 	260,000	 	 	 	240,000	 	 	 	197,790	 
	Miscellaneous	 	 	2,032	 	 	 	1,000	 	 	 	768	 	 	 	1,172	 	 	 	931	 	 	 	1,525	 	 	 	1,422	 
	Total Revenues	 	 	197,784	 	 	 	256,320	 	 	 	435,583	 	 	 	471,272	 	 	 	466,801	 	 	 	413,420	 	 	 	334,616	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Department Expenses	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Rooms	 	 	44,035	 	 	 	48,456	 	 	 	56,414	 	 	 	58,778	 	 	 	52,217	 	 	 	56,744	 	 	 	44,121	 
	Food & Beverage	 	 	85,178	 	 	 	95,397	 	 	 	152,574	 	 	 	168,535	 	 	 	167,209	 	 	 	174,737	 	 	 	126,363	 
	Miscellaneous	 	 	294	 	 	 	500	 	 	 	660	 	 	 	588	 	 	 	488	 	 	 	551	 	 	 	851	 
	Total Department Expenses	 	 	129,507	 	 	 	144,353	 	 	 	209,648	 	 	 	227,901	 	 	 	219,914	 	 	 	232,032	 	 	 	171,335	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Departmental Profit	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Rooms	 	 	56,514	 	 	 	76,864	 	 	 	143,401	 	 	 	146,322	 	 	 	153,653	 	 	 	115,151	 	 	 	91,283	 
	Food & Beverage	 	 	10,025	 	 	 	34,603	 	 	 	82,426	 	 	 	96,465	 	 	 	92,791	 	 	 	65,263	 	 	 	71,427	 
	Miscellaneous	 	 	1,738	 	 	 	500	 	 	 	108	 	 	 	584	 	 	 	443	 	 	 	974	 	 	 	571	 
	Total Departmental Profit	 	 	68,277	 	 	 	111,967	 	 	 	225,935	 	 	 	243,371	 	 	 	246,887	 	 	 	181,388	 	 	 	163,281	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Undistributed Expenses	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Base Management Fee	 	 	3,956	 	 	 	5,126	 	 	 	8,712	 	 	 	9,425	 	 	 	9,336	 	 	 	8,268	 	 	 	6,692	 
	Administrative & General	 	 	17,935	 	 	 	19,415	 	 	 	22,338	 	 	 	27,454	 	 	 	23,208	 	 	 	24,066	 	 	 	17,540	 
	Sales & Marketing	 	 	2,207	 	 	 	1,919	 	 	 	4,086	 	 	 	2,823	 	 	 	4,419	 	 	 	2,729	 	 	 	3,962	 
	Engineering	 	 	16,188	 	 	 	13,141	 	 	 	12,505	 	 	 	18,964	 	 	 	22,772	 	 	 	21,876	 	 	 	12,051	 
	Utilities	 	 	14,015	 	 	 	13,106	 	 	 	13,610	 	 	 	13,881	 	 	 	15,220	 	 	 	15,605	 	 	 	11,785	 
	Total Undistributed Expenses	 	 	54,301	 	 	 	52,707	 	 	 	61,251	 	 	 	72,547	 	 	 	74,955	 	 	 	72,544	 	 	 	52,031	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Gross Operating Profit	 	 	13,976	 	 	 	59,260	 	 	 	164,684	 	 	 	170,824	 	 	 	171,932	 	 	 	108,844	 	 	 	111,250	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Fixed Expenses	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Real Property Taxes	 	 	3,858	 	 	 	3,858	 	 	 	3,858	 	 	 	3,858	 	 	 	3,858	 	 	 	3,858	 	 	 	3,650	 
	Rent	 	 	4,114	 	 	 	4,114	 	 	 	4,114	 	 	 	4,114	 	 	 	4,114	 	 	 	4,114	 	 	 	4,114	 
	Insurance	 	 	2,678	 	 	 	2,678	 	 	 	2,678	 	 	 	2,678	 	 	 	2,678	 	 	 	2,678	 	 	 	2,678	 
	Total Fixed Expenses	 	 	10,650	 	 	 	10,650	 	 	 	10,650	 	 	 	10,650	 	 	 	10,650	 	 	 	10,650	 	 	 	10,442	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Income Before Reserves	 	 	3,326	 	 	 	48,610	 	 	 	154,034	 	 	 	160,174	 	 	 	161,282	 	 	 	98,194	 	 	 	100,808	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Reserve for Replacement	 	 	7,911	 	 	 	10,253	 	 	 	17,423	 	 	 	18,851	 	 	 	18,672	 	 	 	16,537	 	 	 	13,385	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Net Operating Income	 	 	(4,585	)	 	 	38,357	 	 	 	136,611	 	 	 	141,323	 	 	 	142,610	 	 	 	81,657	 	 	 	87,423	 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	August	 	 	September	 	 	October	 	 	November	 	 	December	 	 	Total
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Year	 
	 	 	Amount	 	 	Amount	 	 	Amount	 	 	Amount	 	 	Amount	 	 	Amount	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Available Room Nights	 	 	1,302	 	 	 	1,260	 	 	 	1,302	 	 	 	1,260	 	 	 	1,302	 	 	 	15,330	 
	Occupied Rooms - Revenue	 	 	1,041	 	 	 	1,109	 	 	 	1,146	 	 	 	1,033	 	 	 	846	 	 	 	12,707	 
	Occupied Rooms - With Comps	 	 	1,041	 	 	 	1,109	 	 	 	1,146	 	 	 	1,033	 	 	 	846	 	 	 	12,707	 
	Occupancy	 	 	80.0	%	 	 	88.0	%	 	 	88.0	%	 	 	82.0	%	 	 	65.0	%	 	 	82.9	%
	 Average Daily Rate (ADR)	 	$	125.04	 	 	$	160.04	 	 	$	170.10	 	 	$	135.07	 	 	$	130.04	 	 	$	149.22	 
	 Revenue/Available Room (REVPAR)	 	$	99.97	 	 	$	140.86	 	 	$	149.72	 	 	$	110.74	 	 	$	84.50	 	 	$	123.68	 
	 F&B POR	 	$	180.00	 	 	$	185.00	 	 	$	190.00	 	 	$	160.00	 	 	$	100.00	 	 	$	179.68	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Revenues	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Rooms	 	 	130,167	 	 	 	177,487	 	 	 	194,930	 	 	 	139,532	 	 	 	110,015	 	 	 	1,896,084	 
	Food & Beverage	 	 	187,380	 	 	 	205,165	 	 	 	217,740	 	 	 	165,280	 	 	 	84,600	 	 	 	2,283,158	 
	Miscellaneous	 	 	1,422	 	 	 	1,515	 	 	 	1,566	 	 	 	1,411	 	 	 	1,156	 	 	 	15,921	 
	Total Revenues	 	 	318,969	 	 	 	384,167	 	 	 	414,236	 	 	 	306,223	 	 	 	195,771	 	 	 	4,195,163	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Department Expenses	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Rooms	 	 	44,091	 	 	 	45,975	 	 	 	46,703	 	 	 	42,650	 	 	 	38,338	 	 	 	578,522	 
	Food & Beverage	 	 	122,792	 	 	 	128,664	 	 	 	132,949	 	 	 	112,994	 	 	 	79,037	 	 	 	1,546,429	 
	Miscellaneous	 	 	851	 	 	 	851	 	 	 	851	 	 	 	851	 	 	 	851	 	 	 	8,189	 
	Total Department Expenses	 	 	167,735	 	 	 	175,490	 	 	 	180,504	 	 	 	156,496	 	 	 	118,226	 	 	 	2,133,140	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Departmental Profit	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Rooms	 	 	86,076	 	 	 	131,513	 	 	 	148,227	 	 	 	96,881	 	 	 	71,677	 	 	 	1,317,561	 
	Food & Beverage	 	 	64,588	 	 	 	76,501	 	 	 	84,791	 	 	 	52,286	 	 	 	5,563	 	 	 	736,729	 
	Miscellaneous	 	 	571	 	 	 	664	 	 	 	714	 	 	 	560	 	 	 	305	 	 	 	7,732	 
	Total Departmental Profit	 	 	151,234	 	 	 	208,678	 	 	 	233,732	 	 	 	149,727	 	 	 	77,545	 	 	 	2,062,023	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Undistributed Expenses	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Base Management Fee	 	 	6,379	 	 	 	7,683	 	 	 	8,285	 	 	 	6,124	 	 	 	3,915	 	 	 	83,903	 
	Administrative & General	 	 	17,252	 	 	 	18,542	 	 	 	19,150	 	 	 	14,662	 	 	 	12,549	 	 	 	234,112	 
	Sales & Marketing	 	 	3,051	 	 	 	3,687	 	 	 	5,197	 	 	 	2,388	 	 	 	3,200	 	 	 	39,667	 
	Engineering	 	 	11,301	 	 	 	12,203	 	 	 	12,363	 	 	 	10,504	 	 	 	9,949	 	 	 	173,817	 
	Utilities	 	 	11,685	 	 	 	11,785	 	 	 	10,885	 	 	 	10,185	 	 	 	9,685	 	 	 	151,447	 
	Total Undistributed Expenses	 	 	49,669	 	 	 	53,900	 	 	 	55,879	 	 	 	43,864	 	 	 	39,298	 	 	 	682,946	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Gross Operating Profit	 	 	101,566	 	 	 	154,777	 	 	 	177,854	 	 	 	105,864	 	 	 	38,247	 	 	 	1,379,077	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Fixed Expenses	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Real Property Taxes	 	 	3,650	 	 	 	3,650	 	 	 	3,650	 	 	 	3,650	 	 	 	3,650	 	 	 	45,048	 
	Rent	 	 	4,114	 	 	 	4,114	 	 	 	4,114	 	 	 	4,114	 	 	 	4,114	 	 	 	49,368	 
	Insurance	 	 	2,678	 	 	 	2,678	 	 	 	2,678	 	 	 	2,678	 	 	 	2,678	 	 	 	32,136	 
	Total Fixed Expenses	 	 	10,442	 	 	 	10,442	 	 	 	10,442	 	 	 	10,442	 	 	 	10,442	 	 	 	126,552	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Income Before Reserves	 	 	91,124	 	 	 	144,335	 	 	 	167,412	 	 	 	95,422	 	 	 	27,805	 	 	 	1,252,525	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Reserve for Replacement	 	 	12,759	 	 	 	15,367	 	 	 	16,569	 	 	 	12,249	 	 	 	7,831	 	 	 	167,806	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Net Operating Income	 	 	78,365	 	 	 	128,968	 	 	 	150,842	 	 	 	83,173	 	 	 	19,974	 	 	 	1,084,719	 

  

	 	Page 3 of 21	109.2. Ex 18(a)- 2nd Part - Orchards Inn March 13 Issue / Budget YTD

 

 

 

    	 	 	 

    	 

     

 

Orchards Inn and Restaurant

Prior Year Actual

2012

 

	Prior Year - 2012	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Year to Date	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	January	 	 	February	 	 	March	 	 	April	 	 	May	 	 	June	 	 	July	 	 
	 	 	Amount	 	 	POR	 	 	Amount	 	 	POR	 	 	Amount	 	 	POR	 	 	Amount	 	 	POR	 	 	Amount	 	 	POR	 	 	Amount	 	 	POR	 	 	Amount	 	 	POR	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Rooms Available	 	 	1,302	 	 	 	 	 	 	 	1,218	 	 	 	 	 	 	 	1,302	 	 	 	 	 	 	 	1,260	 	 	 	 	 	 	 	1,302	 	 	 	 	 	 	 	1,260	 	 	 	 	 	 	 	1,302	 	 	 	 	 	 
	Occupied Rooms	 	 	1,062	 	 	 	 	 	 	 	1,062	 	 	 	 	 	 	 	1,248	 	 	 	 	 	 	 	1,239	 	 	 	 	 	 	 	1,219	 	 	 	 	 	 	 	1,141	 	 	 	 	 	 	 	1,190	 	 	 	 	 	 
	Occupancy	 	 	81.6	%	 	 	 	 	 	 	87.2	%	 	 	 	 	 	 	95.9	%	 	 	 	 	 	 	98.3	%	 	 	 	 	 	 	93.6	%	 	 	 	 	 	 	90.6	%	 	 	 	 	 	 	91.4	%	 	 	 	 	 
	Average Daily Rate (ADR)	 	$	110.13	 	 	 	 	 	 	$	124.87	 	 	 	 	 	 	$	155.07	 	 	 	 	 	 	$	165.96	 	 	 	 	 	 	$	163.31	 	 	 	 	 	 	$	148.00	 	 	 	 	 	 	$	134.54	 	 	 	 	 	 
	Revenue/Available Room (REVPAR)	 	$	89.83	 	 	 	 	 	 	$	108.88	 	 	 	 	 	 	$	148.64	 	 	 	 	 	 	$	163.19	 	 	 	 	 	 	$	152.90	 	 	 	 	 	 	$	134.02	 	 	 	 	 	 	$	122.96	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Revenues	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Rooms	 	 	116,959	 	 	$	110.13	 	 	 	132,613	 	 	$	124.87	 	 	 	193,532	 	 	$	155.07	 	 	 	205,623	 	 	$	165.96	 	 	 	199,074	 	 	$	163.31	 	 	 	168,863	 	 	$	148.00	 	 	 	160,097	 	 	$	134.54	 	 
	Food & Beverage	 	 	75,237	 	 	$	70.84	 	 	 	107,732	 	 	$	101.44	 	 	 	218,915	 	 	$	175.41	 	 	 	247,374	 	 	$	199.66	 	 	 	230,841	 	 	$	189.37	 	 	 	225,969	 	 	$	198.04	 	 	 	217,850	 	 	$	183.07	 	 
	Miscellaneous	 	 	984	 	 	$	0.93	 	 	 	971	 	 	$	0.91	 	 	 	746	 	 	$	0.60	 	 	 	1,138	 	 	$	0.92	 	 	 	904	 	 	$	0.74	 	 	 	1,480	 	 	$	1.30	 	 	 	5,131	 	 	$	4.31	 	 
	 	 	 	193,180	 	 	$	181.90	 	 	 	241,315	 	 	$	227.23	 	 	 	413,193	 	 	$	331.08	 	 	 	454,135	 	 	$	366.53	 	 	 	430,819	 	 	$	353.42	 	 	 	396,312	 	 	$	347.34	 	 	 	383,078	 	 	$	321.91	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Department Expenses	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Rooms	 	 	46,947	 	 	$	44.21	 	 	 	43,423	 	 	$	40.89	 	 	 	53,891	 	 	$	43.18	 	 	 	59,621	 	 	$	48.12	 	 	 	52,535	 	 	$	43.10	 	 	 	56,534	 	 	$	49.55	 	 	 	56,905	 	 	$	47.82	 	 
	Food & Beverage	 	 	62,454	 	 	$	58.81	 	 	 	74,940	 	 	$	70.56	 	 	 	124,162	 	 	$	99.49	 	 	 	132,562	 	 	$	106.99	 	 	 	132,298	 	 	$	108.53	 	 	 	141,693	 	 	$	124.18	 	 	 	140,513	 	 	$	118.08	 	 
	Miscellaneous	 	 	609	 	 	$	0.57	 	 	 	485	 	 	$	0.46	 	 	 	641	 	 	$	0.51	 	 	 	571	 	 	$	0.46	 	 	 	473	 	 	$	0.39	 	 	 	535	 	 	$	0.47	 	 	 	425	 	 	$	0.36	 	 
	Total Department Expenses	 	 	110,010	 	 	$	103.59	 	 	 	118,848	 	 	$	111.91	 	 	 	178,693	 	 	$	143.18	 	 	 	192,754	 	 	$	155.57	 	 	 	185,306	 	 	$	152.01	 	 	 	198,763	 	 	$	174.20	 	 	 	197,843	 	 	$	166.25	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Departmental Profit	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Rooms	 	 	70,012	 	 	$	65.92	 	 	 	89,189	 	 	$	83.98	 	 	 	139,641	 	 	$	111.89	 	 	 	146,003	 	 	$	117.84	 	 	 	146,539	 	 	$	120.21	 	 	 	112,329	 	 	$	98.45	 	 	 	103,192	 	 	$	86.72	 	 
	Food & Beverage	 	 	12,783	 	 	$	12.04	 	 	 	32,792	 	 	$	30.88	 	 	 	94,753	 	 	$	75.92	 	 	 	114,811	 	 	$	92.66	 	 	 	98,543	 	 	$	80.84	 	 	 	84,275	 	 	$	73.86	 	 	 	77,337	 	 	$	64.99	 	 
	Miscellaneous	 	 	376	 	 	$	0.35	 	 	 	486	 	 	$	0.46	 	 	 	105	 	 	$	0.08	 	 	 	567	 	 	$	0.46	 	 	 	431	 	 	$	0.35	 	 	 	945	 	 	$	0.83	 	 	 	4,706	 	 	$	3.95	 	 
	Total Departmental Profit	 	 	83,170	 	 	$	78.31	 	 	 	122,467	 	 	$	115.32	 	 	 	234,499	 	 	$	187.90	 	 	 	261,381	 	 	$	210.96	 	 	 	245,513	 	 	$	201.41	 	 	 	197,549	 	 	$	173.14	 	 	 	185,235	 	 	$	155.66	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Undistributed Expenses	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Management Fees	 	 	3,864	 	 	$	3.64	 	 	 	4,826	 	 	$	4.54	 	 	 	8,222	 	 	$	6.59	 	 	 	9,079	 	 	$	7.33	 	 	 	8,616	 	 	$	7.07	 	 	 	7,910	 	 	$	6.93	 	 	 	7,646	 	 	$	6.43	 	 
	Administrative & General	 	 	14,558	 	 	$	13.71	 	 	 	17,713	 	 	$	16.68	 	 	 	24,550	 	 	$	19.67	 	 	 	28,564	 	 	$	23.05	 	 	 	25,156	 	 	$	20.64	 	 	 	24,063	 	 	$	21.09	 	 	 	20,561	 	 	$	17.28	 	 
	Sales & Marketing	 	 	1,466	 	 	$	1.38	 	 	 	1,827	 	 	$	1.72	 	 	 	3,891	 	 	$	3.12	 	 	 	2,688	 	 	$	2.17	 	 	 	4,208	 	 	$	3.45	 	 	 	2,599	 	 	$	2.28	 	 	 	2,005	 	 	$	1.69	 	 
	Engineering	 	 	15,341	 	 	$	14.45	 	 	 	10,524	 	 	$	9.91	 	 	 	15,524	 	 	$	12.44	 	 	 	22,612	 	 	$	18.25	 	 	 	21,755	 	 	$	17.85	 	 	 	28,636	 	 	$	25.10	 	 	 	28,900	 	 	$	24.29	 	 
	Utilities	 	 	13,363	 	 	$	12.58	 	 	 	12,482	 	 	$	11.75	 	 	 	12,962	 	 	$	10.39	 	 	 	13,220	 	 	$	10.67	 	 	 	14,495	 	 	$	11.89	 	 	 	14,862	 	 	$	13.03	 	 	 	14,479	 	 	$	12.17	 	 
	Total Undistributed Expenses	 	 	48,591	 	 	$	45.75	 	 	 	47,373	 	 	$	44.61	 	 	 	65,148	 	 	$	52.20	 	 	 	76,164	 	 	$	61.47	 	 	 	74,230	 	 	$	60.89	 	 	 	78,069	 	 	$	68.42	 	 	 	73,591	 	 	$	61.84	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Gross Operating Profit	 	 	34,579	 	 	$	32.56	 	 	 	75,095	 	 	$	70.71	 	 	 	169,351	 	 	$	135.70	 	 	 	185,218	 	 	$	149.49	 	 	 	171,283	 	 	$	140.51	 	 	 	119,481	 	 	$	104.72	 	 	 	111,644	 	 	$	93.82	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Fixed Expenses	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Property Taxes	 	 	5,669	 	 	$	5.34	 	 	 	5,669	 	 	$	5.34	 	 	 	5,669	 	 	$	4.54	 	 	 	(2,676	)	 	$	(2.16	)	 	 	3,200	 	 	$	2.63	 	 	 	3,200	 	 	$	2.80	 	 	 	3,200	 	 	$	2.69	 	 
	Leases (Rent)	 	 	(1,301	)	 	$	(1.23	)	 	 	2,241	 	 	$	2.11	 	 	 	1,464	 	 	$	1.17	 	 	 	(920	)	 	$	(0.74	)	 	 	10,494	 	 	$	8.61	 	 	 	2,187	 	 	$	1.92	 	 	 	8,393	 	 	$	7.05	 	 
	Insurance	 	 	2,167	 	 	$	2.04	 	 	 	2,167	 	 	$	2.04	 	 	 	2,167	 	 	$	1.74	 	 	 	2,167	 	 	$	1.75	 	 	 	2,167	 	 	$	1.78	 	 	 	2,167	 	 	$	1.90	 	 	 	111	 	 	$	0.09	 	 
	Total Fixed Expenses	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Income Before Reserves	 	 	28,044	 	 	$	26.41	 	 	 	65,017	 	 	$	61.22	 	 	 	160,052	 	 	$	128.25	 	 	 	186,647	 	 	$	150.64	 	 	 	155,422	 	 	$	127.50	 	 	 	111,927	 	 	$	98.10	 	 	 	99,940	 	 	$	83.98	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Reserve for Replacement	 	 	7,727	 	 	$	7.28	 	 	 	9,653	 	 	$	9.09	 	 	 	16,528	 	 	$	13.24	 	 	 	18,165	 	 	$	14.66	 	 	 	17,233	 	 	$	14.14	 	 	 	15,852	 	 	$	13.89	 	 	 	15,323	 	 	$	12.88	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Net Operating Income	 	 	20,317	 	 	$	19.13	 	 	 	55,365	 	 	$	52.13	 	 	 	143,524	 	 	$	115.00	 	 	 	168,482	 	 	$	135.98	 	 	 	138,190	 	 	$	113.36	 	 	 	96,074	 	 	$	84.20	 	 	 	84,617	 	 	$	71.11	 	 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	August	 	 	September	 	 	October	 	 	November	 	 	December	 	 	Total
    Year	 
	 	 	Amount	 	 	POR	 	 	Amount	 	 	POR	 	 	Amount	 	 	POR	 	 	Amount	 	 	POR	 	 	Amount	 	 	POR	 	 	Amount	 	 	POR	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Rooms Available	 	 	1,302	 	 	 	 	 	 	 	1,260	 	 	 	 	 	 	 	1,302	 	 	 	 	 	 	 	1,260	 	 	 	 	 	 	 	1,246	 	 	 	 	 	 	 	15,316	 	 	 	 	 
	Occupied Rooms	 	 	1,190	 	 	 	 	 	 	 	1,144	 	 	 	 	 	 	 	1,225	 	 	 	 	 	 	 	1,062	 	 	 	 	 	 	 	1	 	 	 	 	 	 	 	12,783	 	 	 	 	 
	Occupancy	 	 	91.4	%	 	 	 	 	 	 	90.8	%	 	 	 	 	 	 	94.1	%	 	 	 	 	 	 	84.3	%	 	 	 	 	 	 	0.1	%	 	 	 	 	 	 	83.5	%	 	 	 	 
	Average Daily Rate (ADR)	 	$	132.26	 	 	 	 	 	 	$	165.52	 	 	 	 	 	 	$	175.06	 	 	 	 	 	 	$	145.51	 	 	 	 	 	 	$	323,557.23	 	 	 	 	 	 	$	172.27	 	 	 	 	 
	Revenue/Available Room (REVPAR)	 	$	120.89	 	 	 	 	 	 	$	150.28	 	 	 	 	 	 	$	164.71	 	 	 	 	 	 	$	122.64	 	 	 	 	 	 	$	248.51	 	 	 	 	 	 	$	143.78	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Revenues	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Rooms	 	 	157,394	 	 	$	132.26	 	 	 	189,351	 	 	$	165.52	 	 	 	214,452	 	 	$	175.06	 	 	 	154,530	 	 	$	145.51	 	 	 	309,641	 	 	$	248.51	 	 	 	2,202,128	 	 	$	143.78	 
	Food & Beverage	 	 	200,907	 	 	$	168.83	 	 	 	220,637	 	 	$	192.86	 	 	 	235,806	 	 	$	192.49	 	 	 	166,461	 	 	$	156.74	 	 	 	841	 	 	$	0.68	 	 	 	2,148,570	 	 	$	140.28	 
	Miscellaneous	 	 	3,324	 	 	$	2.79	 	 	 	811	 	 	$	0.71	 	 	 	627	 	 	$	0.51	 	 	 	2,912	 	 	$	2.74	 	 	 	513,799	 	 	$	412.36	 	 	 	532,826	 	 	$	34.79	 
	 	 	 	361,625	 	 	$	303.89	 	 	 	410,800	 	 	$	359.09	 	 	 	450,885	 	 	$	368.07	 	 	 	323,902	 	 	$	304.99	 	 	 	824,281	 	 	$	661.54	 	 	 	4,883,525	 	 	$	318.85	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Department Expenses	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Rooms	 	 	58,046	 	 	$	48.78	 	 	 	49,877	 	 	$	43.60	 	 	 	57,276	 	 	$	46.76	 	 	 	47,567	 	 	$	44.79	 	 	 	181,040	 	 	$	145.30	 	 	 	763,662	 	 	$	49.86	 
	Food & Beverage	 	 	128,621	 	 	$	108.09	 	 	 	132,341	 	 	$	115.68	 	 	 	141,436	 	 	$	115.46	 	 	 	115,664	 	 	$	108.91	 	 	 	417	 	 	$	0.33	 	 	 	1,327,103	 	 	$	86.65	 
	Miscellaneous	 	 	374	 	 	$	0.31	 	 	 	1,445	 	 	$	1.26	 	 	 	342	 	 	$	0.28	 	 	 	461	 	 	$	0.43	 	 	 	246,780	 	 	$	198.06	 	 	 	253,140	 	 	$	16.53	 
	Total Department Expenses	 	 	187,042	 	 	$	157.18	 	 	 	183,664	 	 	$	160.55	 	 	 	199,054	 	 	$	162.49	 	 	 	163,692	 	 	$	154.14	 	 	 	428,237	 	 	$	343.69	 	 	 	2,343,905	 	 	$	153.04	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Departmental Profit	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Rooms	 	 	99,348	 	 	$	83.49	 	 	 	139,474	 	 	$	121.92	 	 	 	157,175	 	 	$	128.31	 	 	 	106,963	 	 	$	100.72	 	 	 	128,601	 	 	$	103.21	 	 	 	1,438,466	 	 	$	93.92	 
	Food & Beverage	 	 	72,286	 	 	$	60.74	 	 	 	88,296	 	 	$	77.18	 	 	 	94,371	 	 	$	77.04	 	 	 	50,797	 	 	$	47.83	 	 	 	424	 	 	$	0.34	 	 	 	821,468	 	 	$	53.63	 
	Miscellaneous	 	 	2,949	 	 	$	2.48	 	 	 	(634	)	 	$	(0.55	)	 	 	285	 	 	$	0.23	 	 	 	2,451	 	 	$	2.31	 	 	 	267,019	 	 	$	214.30	 	 	 	279,686	 	 	$	18.26	 
	Total Departmental Profit	 	 	174,583	 	 	$	146.71	 	 	 	227,136	 	 	$	198.55	 	 	 	251,831	 	 	$	205.58	 	 	 	160,210	 	 	$	150.86	 	 	 	396,044	 	 	$	317.85	 	 	 	2,539,619	 	 	$	165.81	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Undistributed Expenses	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Management Fees	 	 	7,233	 	 	$	6.08	 	 	 	9,534	 	 	$	8.33	 	 	 	9,021	 	 	$	7.36	 	 	 	6,478	 	 	$	6.10	 	 	 	20,182	 	 	$	16.20	 	 	 	102,611	 	 	$	6.70	 
	Administrative & General	 	 	26,732	 	 	$	22.46	 	 	 	23,985	 	 	$	20.97	 	 	 	24,856	 	 	$	20.29	 	 	 	22,605	 	 	$	21.29	 	 	 	1,947	 	 	$	1.56	 	 	 	255,289	 	 	$	16.67	 
	Sales & Marketing	 	 	5,813	 	 	$	4.88	 	 	 	6,047	 	 	$	5.29	 	 	 	3,845	 	 	$	3.14	 	 	 	2,358	 	 	$	2.22	 	 	 	17,721	 	 	$	14.22	 	 	 	54,469	 	 	$	3.56	 
	Engineering	 	 	26,885	 	 	$	22.59	 	 	 	23,582	 	 	$	20.61	 	 	 	25,491	 	 	$	20.81	 	 	 	12,734	 	 	$	11.99	 	 	 	11,397	 	 	$	9.15	 	 	 	243,380	 	 	$	15.89	 
	Utilities	 	 	12,785	 	 	$	10.74	 	 	 	13,275	 	 	$	11.60	 	 	 	13,662	 	 	$	11.15	 	 	 	12,448	 	 	$	11.72	 	 	 	61,522	 	 	$	49.38	 	 	 	209,556	 	 	$	13.68	 
	Total Undistributed Expenses	 	 	79,448	 	 	$	66.76	 	 	 	76,423	 	 	$	66.80	 	 	 	76,875	 	 	$	62.76	 	 	 	56,623	 	 	$	53.32	 	 	 	112,768	 	 	$	90.50	 	 	 	865,303	 	 	$	56.50	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Gross Operating Profit	 	 	95,134	 	 	$	79.94	 	 	 	150,713	 	 	$	131.74	 	 	 	174,956	 	 	$	142.82	 	 	 	103,587	 	 	$	97.54	 	 	 	283,276	 	 	$	227.35	 	 	 	1,674,316	 	 	$	109.32	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Fixed Expenses	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Property Taxes	 	 	3,200	 	 	$	2.69	 	 	 	3,200	 	 	$	2.80	 	 	 	3,200	 	 	$	2.61	 	 	 	3,262	 	 	$	3.07	 	 	 	4,009	 	 	$	3.22	 	 	 	40,802	 	 	$	2.66	 
	Leases (Rent)	 	 	6,024	 	 	$	5.06	 	 	 	6,024	 	 	$	5.27	 	 	 	6,213	 	 	$	5.07	 	 	 	3,880	 	 	$	3.65	 	 	 	2,678	 	 	$	2.15	 	 	 	47,376	 	 	$	3.09	 
	Insurance	 	 	2,167	 	 	$	1.82	 	 	 	2,167	 	 	$	1.89	 	 	 	1,596	 	 	$	1.30	 	 	 	2,678	 	 	$	2.52	 	 	 	10,545	 	 	$	8.46	 	 	 	32,264	 	 	$	2.11	 
	Total Fixed Expenses	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Income Before Reserves	 	 	83,744	 	 	$	70.37	 	 	 	139,322	 	 	$	121.78	 	 	 	163,947	 	 	$	133.83	 	 	 	93,768	 	 	$	88.29	 	 	 	266,044	 	 	$	213.52	 	 	 	1,553,874	 	 	$	101.45	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Reserve for Replacement	 	 	14,465	 	 	$	12.16	 	 	 	16,432	 	 	$	14.36	 	 	 	18,035	 	 	$	14.72	 	 	 	12,956	 	 	$	12.20	 	 	 	32,971	 	 	$	26.46	 	 	 	195,341	 	 	$	12.75	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Net Operating Income	 	 	69,279	 	 	$	58.22	 	 	 	122,890	 	 	$	107.42	 	 	 	145,911	 	 	$	119.11	 	 	 	80,812	 	 	$	76.09	 	 	 	233,073	 	 	$	187.06	 	 	 	1,358,533	 	 	$	88.70	 

 

 

	 	Page 4 of 21	109.2. Ex 18(a)- 2nd Part - Orchards Inn March 13 Issue / Prior Yr YTD

 

 

 

    	 	 	 

    	 

      

	 	 	Orchards Inn
    and Restaurant
	 	 	Rooms Department
	 	 	Actual vs. Budget
    and Prior Year
	 	 	March
    2013
	 	 	Current
    Month	 
	 	 	Actual	 	 	%
    to
 Revenue	 	 	Budget	 	 	%
    to
 Revenue	 	 	Variance	 	 	%
    to
 Revenue	 	 	Prior
    Year	 	 	%
    to
 Revenue	 	 	Variance	 	 	%
    to
 Revenue	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Revenue	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4100 ·
    Room Charges	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4110 ·
    Transient Room charges	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4111
    · Best Available Rate	 	$	47,335	 	 	 	23.3	%	 	$	53,957	 	 	 	27.0	%	 	$	(6,622	)	 	 	-189.1	%	 	$	52,260	 	 	 	27.0	%	 	$	(4,925	)	 	 	-50.3	%
	4113
    · Corporate	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	4114
    · Discount	 	 	122,912	 	 	 	60.5	%	 	 	118,001	 	 	 	59.1	%	 	 	4,911	 	 	 	140.3	%	 	 	113,986	 	 	 	58.9	%	 	 	8,926	 	 	 	91.2	%
	4115·FIT/Internet	 	 	27,271	 	 	 	13.4	%	 	 	18,690	 	 	 	9.4	%	 	 	8,581	 	 	 	245.0	%	 	 	18,103	 	 	 	9.4	%	 	 	9,168	 	 	 	93.7	%
	4116
    · House	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	(21	)	 	 	0.0	%	 	 	21	 	 	 	0.2	%
	4117
    · House Posting	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	4118
    · Room Gift Certificates	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	Total 4110 ·
    Transient Room charges	 	 	197,518	 	 	 	97.1	%	 	 	190,648	 	 	 	95.4	%	 	 	6,870	 	 	 	196.2	%	 	 	184,328	 	 	 	95.2	%	 	 	13,190	 	 	 	134.8	%
	4119
    · No Show	 	 	621	 	 	 	34.6	%	 	 	-	 	 	 	#DIV/0!	 	 	 	621	 	 	 	17.7	%	 	 	325	 	 	 	17.9	%	 	 	297	 	 	 	3.0	%
	4120
    · Crib Rental	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	#DIV/0!	 	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	4150 ·
    Group	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.0	%	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.0	%
	4151
    · Group Association	 	 	1,640	 	 	 	91.3	%	 	 	-	 	 	 	#DIV/0!	 	 	 	1,640	 	 	 	46.8	%	 	 	-	 	 	 	0.0	%	 	 	1,640	 	 	 	16.8	%
	4152
    · Group Corporate	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	#DIV/0!	 	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	4153
    · Group Smerf	 	 	-	 	 	 	0.0	%	 	 	861	 	 	 	#DIV/0!	 	 	 	(861	)	 	 	-24.6	%	 	 	834	 	 	 	46.1	%	 	 	(834	)	 	 	-8.5	%
	4154·Group-Tour	 	 	3,537	 	 	 	197.0	%	 	 	8,306	 	 	 	#DIV/0!	 	 	 	(4,769	)	 	 	-136.2	%	 	 	8,045	 	 	 	444.8	%	 	 	(4,508	)	 	 	-46.1	%
	Total
    4150 · Group	 	 	5,177	 	 	 	288.3	%	 	 	9,167	 	 	 	#DIV/0!	 	 	 	(3,990	)	 	 	-113.9	%	 	 	8,879	 	 	 	490.9	%	 	 	(3,702	)	 	 	-37.8	%
	Total Revenue	 	 	203,317	 	 	 	100.0	%	 	 	199,815	 	 	 	100.0	%	 	 	3,502	 	 	 	100.0	%	 	 	193,532	 	 	 	100.0	%	 	 	9,785	 	 	 	100.0	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Expense	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5000 ·
    Payroll & Benefits	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5100 ·
    Rooms Salaries & Wages	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5111000 ·
    Front Office	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5111170
    · Rooms Manager	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	5111160
    · Assistant Manager	 	 	2,587	 	 	 	1.3	%	 	 	1,868	 	 	 	0.9	%	 	 	719	 	 	 	20.5	%	 	 	-	 	 	 	0.0	%	 	 	2,587	 	 	 	26.4	%
	5111199
    · Rooms Shared Services	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	5111600
    · Guest Service Agents	 	 	5,425	 	 	 	2.7	%	 	 	-	 	 	 	0.0	%	 	 	5,425	 	 	 	154.9	%	 	 	3,454	 	 	 	1.8	%	 	 	1,971	 	 	 	20.1	%
	5111601
    · Front Office Bonus-	 	 	-	 	 	 	0.0	%	 	 	5,361	 	 	 	2.7	%	 	 	(5,361	)	 	 	-153.1	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	5111605
    · Reservationist	 	 	1,544	 	 	 	0.8	%	 	 	1,304	 	 	 	0.7	%	 	 	240	 	 	 	6.9	%	 	 	1,070	 	 	 	0.6	%	 	 	474	 	 	 	4.8	%
	5111606
    · Reservationist - Bonus	 	 	196	 	 	 	0.1	%	 	 	-	 	 	 	0.0	%	 	 	196	 	 	 	5.6	%	 	 	196	 	 	 	0.1	%	 	 	-	 	 	 	0.0	%
	5111610
    · Supervisor	 	 	(700	)	 	 	-0.3	%	 	 	-	 	 	 	0.0	%	 	 	(700	)	 	 	-20.0	%	 	 	1,813	 	 	 	0.9	%	 	 	(2,513	)	 	 	-25.7	%
	5111640
    · Night Auditor	 	 	3,332	 	 	 	1.6	%	 	 	-	 	 	 	0.0	%	 	 	3,332	 	 	 	95.2	%	 	 	1,751	 	 	 	0.9	%	 	 	1,581	 	 	 	16.2	%
	Total 5111000
    · Front Office	 	 	12,384	 	 	 	6.1	%	 	 	8,532	 	 	 	4.3	%	 	 	3,851	 	 	 	110.0	%	 	 	8,284	 	 	 	4.3	%	 	 	4,100	 	 	 	41.9	%
	5111050 ·
    Front Office Taxes & Benefits	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5151
    · Rms Payroll Taxes	 	 	1,249	 	 	 	0.6	%	 	 	1,638	 	 	 	0.8	%	 	 	(389	)	 	 	-11.1	%	 	 	963	 	 	 	0.5	%	 	 	286	 	 	 	2.9	%
	5152
    · Rms Workers'  Comp	 	 	128	 	 	 	0.1	%	 	 	195	 	 	 	0.1	%	 	 	(67	)	 	 	-1.9	%	 	 	82	 	 	 	0.0	%	 	 	46	 	 	 	0.5	%
	5153
    · Rms Employ Benefits	 	 	573	 	 	 	0.3	%	 	 	276	 	 	 	0.1	%	 	 	296	 	 	 	8.5	%	 	 	268	 	 	 	0.1	%	 	 	305	 	 	 	3.1	%
	5155
    · Rms PTO	 	 	142	 	 	 	0.1	%	 	 	284	 	 	 	0.1	%	 	 	(142	)	 	 	-4.0	%	 	 	271	 	 	 	0.1	%	 	 	(129	)	 	 	-1.3	%
	5156
    · Rms Employ Meals	 	 	106	 	 	 	0.1	%	 	 	207	 	 	 	0.1	%	 	 	(101	)	 	 	-2.9	%	 	 	59	 	 	 	0.0	%	 	 	48	 	 	 	0.5	%
	5199
    · Rooms Shared Services Fringes	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	Total 5111050
    · Front Office Taxes & Benefits	 	 	2,198	 	 	 	1.1	%	 	 	2,600	 	 	 	1.3	%	 	 	(402	)	 	 	-11.5	%	 	 	1,643	 	 	 	0.8	%	 	 	554	 	 	 	5.7	%
	5112000 ·
    Housekeeping	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5112050
    · Housekeeping	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	5112170
    · Housekeeping Manager	 	 	2,646	 	 	 	1.3	%	 	 	-	 	 	 	0.0	%	 	 	2,646	 	 	 	75.6	%	 	 	1,426	 	 	 	0.7	%	 	 	1,220	 	 	 	12.5	%
	5112500
    · Room Attendent	 	 	5,957	 	 	 	2.9	%	 	 	6,472	 	 	 	3.2	%	 	 	(516	)	 	 	-14.7	%	 	 	6,284	 	 	 	3.2	%	 	 	(327	)	 	 	-3.3	%
	5112510
    · House Attendant	 	 	2,131	 	 	 	1.0	%	 	 	2,003	 	 	 	1.0	%	 	 	128	 	 	 	3.7	%	 	 	1,945	 	 	 	1.0	%	 	 	187	 	 	 	1.9	%
	5112520
    · Laundry Attendant	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	5112530
    · Lead Room Supervisor	 	 	1,796	 	 	 	0.9	%	 	 	-	 	 	 	0.0	%	 	 	1,796	 	 	 	51.3	%	 	 	1,809	 	 	 	0.9	%	 	 	(13	)	 	 	-0.1	%
	5112540
    · Housekeeping Supervisor	 	 	-	 	 	 	0.0	%	 	 	3,332	 	 	 	1.7	%	 	 	(3,332	)	 	 	-95.1	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	5112599
    · Housekeeping - Other pay	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	Total 5112000
    · Housekeeping	 	 	12,530	 	 	 	6.2	%	 	 	11,807	 	 	 	5.9	%	 	 	723	 	 	 	20.6	%	 	 	11,463	 	 	 	5.9	%	 	 	1,067	 	 	 	10.9	%
	5112050
    · Housekeeping Taxes & Benefits	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5112050
    · Housekeeping Taxes & Benefits - Other	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	5251
    · Housekeeping Payroll Taxes	 	 	459	 	 	 	0.2	%	 	 	-	 	 	 	0.0	%	 	 	459	 	 	 	13.1	%	 	 	627	 	 	 	0.3	%	 	 	(167	)	 	 	-1.7	%
	5252
    · Housekeeping Workers' Comp	 	 	131	 	 	 	0.1	%	 	 	-	 	 	 	0.0	%	 	 	131	 	 	 	3.7	%	 	 	107	 	 	 	0.1	%	 	 	24	 	 	 	0.2	%
	5253
    · Housekeeping Employee Benefits	 	 	87	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	87	 	 	 	2.5	%	 	 	-	 	 	 	0.0	%	 	 	87	 	 	 	0.9	%
	5255
    · Housekeeping PTO Expense	 	 	128	 	 	 	0.1	%	 	 	-	 	 	 	0.0	%	 	 	128	 	 	 	3.6	%	 	 	4	 	 	 	0.0	%	 	 	123	 	 	 	1.3	%
	5256
    · Hskpg-Employee Meals	 	 	149	 	 	 	0.1	%	 	 	-	 	 	 	0.0	%	 	 	149	 	 	 	4.3	%	 	 	142	 	 	 	0.1	%	 	 	7	 	 	 	0.1	%
	5257
    · Shared PTO Expense	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	Total
    5112050 · Housekeeping Taxes & Benefits	 	 	954	 	 	 	0.5	%	 	 	-	 	 	 	0.0	%	 	 	954	 	 	 	27.2	%	 	 	881	 	 	 	0.5	%	 	 	73	 	 	 	0.7	%
	Total 5100 ·
    Rooms Salaries & Wages	 	 	28,065	 	 	 	13.8	%	 	 	22,939	 	 	 	11.5	%	 	 	5,126	 	 	 	146.4	%	 	 	22,271	 	 	 	11.5	%	 	 	5,794	 	 	 	59.2	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	8100 ·
    Rooms  Expenses	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	8100
    · Rooms  Expenses - Other	 	 	-	 	 	 	0.0	%	 	 	2,167	 	 	 	1.1	%	 	 	(2,167	)	 	 	-61.9	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8101
    · Comp Breakfast	 	 	17,219	 	 	 	8.5	%	 	 	15,743	 	 	 	7.9	%	 	 	1,476	 	 	 	42.1	%	 	 	14,404	 	 	 	7.4	%	 	 	2,815	 	 	 	28.8	%
	8110
    · Guest Supplies	 	 	2,129	 	 	 	1.0	%	 	 	1,617	 	 	 	0.8	%	 	 	512	 	 	 	14.6	%	 	 	1,570	 	 	 	0.8	%	 	 	559	 	 	 	5.7	%
	8111
    · In-Room Equipment	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8112
    · Guest Relations	 	 	26	 	 	 	0.0	%	 	 	38	 	 	 	0.0	%	 	 	(12	)	 	 	-0.4	%	 	 	37	 	 	 	0.0	%	 	 	(11	)	 	 	-0.1	%
	8114
    · Guest Amenities	 	 	36	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	36	 	 	 	1.0	%	 	 	-	 	 	 	0.0	%	 	 	36	 	 	 	0.4	%
	8115
    · Operating Supplies	 	 	257	 	 	 	0.1	%	 	 	29	 	 	 	0.0	%	 	 	228	 	 	 	6.5	%	 	 	28	 	 	 	0.0	%	 	 	229	 	 	 	2.3	%
	8117
    · Newspapers	 	 	106	 	 	 	0.1	%	 	 	-	 	 	 	0.0	%	 	 	106	 	 	 	3.0	%	 	 	223	 	 	 	0.1	%	 	 	(117	)	 	 	-1.2	%
	8120
    · Cleaning Supplies	 	 	88	 	 	 	0.0	%	 	 	123	 	 	 	0.1	%	 	 	(35	)	 	 	-1.0	%	 	 	120	 	 	 	0.1	%	 	 	(32	)	 	 	-0.3	%
	8129
    · Linens	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8130
    · Outside Laundry	 	 	9,739	 	 	 	4.8	%	 	 	7,438	 	 	 	3.7	%	 	 	2,301	 	 	 	65.7	%	 	 	7,221	 	 	 	3.7	%	 	 	2,518	 	 	 	25.7	%
	8135
    · Uniforms	 	 	104	 	 	 	0.1	%	 	 	819	 	 	 	0.4	%	 	 	(716	)	 	 	-20.4	%	 	 	796	 	 	 	0.4	%	 	 	(692	)	 	 	-7.1	%
	8149
    · Group Commissions	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8150
    · TA Commissions	 	 	469	 	 	 	0.2	%	 	 	640	 	 	 	0.3	%	 	 	(171	)	 	 	-4.9	%	 	 	621	 	 	 	0.3	%	 	 	(152	)	 	 	-1.6	%
	8152
    · Auto Expense (van)	 	 	123	 	 	 	0.1	%	 	 	-	 	 	 	0.0	%	 	 	123	 	 	 	3.5	%	 	 	-	 	 	 	0.0	%	 	 	123	 	 	 	1.3	%
	8151
    · Computer Maint. & Support	 	 	684	 	 	 	0.3	%	 	 	1,197	 	 	 	0.6	%	 	 	(512	)	 	 	-14.6	%	 	 	1,162	 	 	 	0.6	%	 	 	(478	)	 	 	-4.9	%
	8155
    · Reservation Expense	 	 	4,746	 	 	 	2.3	%	 	 	1,195	 	 	 	0.6	%	 	 	3,552	 	 	 	101.4	%	 	 	1,160	 	 	 	0.6	%	 	 	3,586	 	 	 	36.7	%
	8156
    · Concierge Expenses	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8157
    · Walk Expense	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8158
    · Equipment Repair	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8164
    · Decorations	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	97	 	 	 	0.1	%	 	 	(97	)	 	 	-1.0	%
	8165
    · Comp In-Room Coffee	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8170
    · Contract Labor	 	 	67	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	67	 	 	 	1.9	%	 	 	-	 	 	 	0.0	%	 	 	67	 	 	 	0.7	%
	8174
    · Music & Entertainment	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8175
    · Cable TV	 	 	1,086	 	 	 	0.5	%	 	 	1,909	 	 	 	1.0	%	 	 	(823	)	 	 	-23.5	%	 	 	1,853	 	 	 	1.0	%	 	 	(767	)	 	 	-7.8	%
	8178
    · Express Mail	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8184
    · Printing	 	 	49	 	 	 	0.0	%	 	 	415	 	 	 	0.2	%	 	 	(366	)	 	 	-10.4	%	 	 	403	 	 	 	0.2	%	 	 	(354	)	 	 	-3.6	%
	8185
    · Telephone Cell & Radio	 	 	62	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	62	 	 	 	1.8	%	 	 	76	 	 	 	0.0	%	 	 	(14	)	 	 	-0.1	%
	8190
    · Office Supplies	 	 	229	 	 	 	0.1	%	 	 	-	 	 	 	0.0	%	 	 	229	 	 	 	6.5	%	 	 	202	 	 	 	0.1	%	 	 	27	 	 	 	0.3	%
	8191
    · Employee Relations & Training	 	 	38	 	 	 	0.0	%	 	 	50	 	 	 	0.0	%	 	 	(12	)	 	 	-0.3	%	 	 	48	 	 	 	0.0	%	 	 	(10	)	 	 	-0.1	%
	8192
    · Building Rent - Housekeeping	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	1,301	 	 	 	0.7	%	 	 	(1,301	)	 	 	-13.3	%
	8193
    · License & Permits	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8195
    · Equipment Lease	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	205	 	 	 	0.1	%	 	 	(205	)	 	 	-2.1	%
	8196
    · Business Travel	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8197
    · Business Meals	 	 	-	 	 	 	0.0	%	 	 	96	 	 	 	0.0	%	 	 	(96	)	 	 	-2.7	%	 	 	93	 	 	 	0.0	%	 	 	(93	)	 	 	-1.0	%
	8199
    · Final Room Prep - Renovated Rms	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8225
    · Laundry Expense	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	Total
    8100 · Rooms  Expenses	 	 	37,258	 	 	 	18.3	%	 	 	33,476	 	 	 	16.8	%	 	 	3,782	 	 	 	108.0	%	 	 	31,620	 	 	 	16.3	%	 	 	5,638	 	 	 	57.6	%
	Total
    Expense	 	 	65,323	 	 	 	32.1	%	 	 	56,414	 	 	 	28.2	%	 	 	8,908	 	 	 	254.4	%	 	 	53,891	 	 	 	27.8	%	 	 	11,432	 	 	 	116.8	%
	Net
    Income	 	$	137,994	 	 	 	67.9	%	 	$	143,401	 	 	 	71.8	%	 	$	(5,407	)	 	 	-154.4	%	 	$	139,641	 	 	 	72.2	%	 	$	(1,647	)	 	 	-16.8	%

 

	 	 	Year
    to Date	 	 	Budget

    Full Year	 
	 	 	Actual	 	 	%
    to
 Revenue	 	 	Budget	 	 	%
    to
 Revenue	 	 	Variance	 	 	%
    to
 Revenue	 	 	Prior
    Year	 	 	%
    to
 Revenue	 	 	Variance	 	 	%
    to
 Revenue	 	 	Amount	 	 	%
    to
 Revenue	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Revenue	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4100 ·
    Room Charges	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4110 ·
    Transient Room charges	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4111
    · Best Available Rate	 	$	84,572	 	 	 	19.5	%	 	$	102,730	 	 	 	24.1	%	 	$	(18,158	)	 	 	-223.1	%	 	$	143,120	 	 	 	32.3	%	 	$	(58,548	)	 	 	631.0	%	 	$	600,818	 	 	 	33.8	%
	4113
    · Corporate	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	4114
    · Discount	 	 	270,047	 	 	 	62.2	%	 	 	254,647	 	 	 	59.8	%	 	 	15,400	 	 	 	189.2	%	 	 	226,870	 	 	 	51.2	%	 	 	43,177	 	 	 	-465.3	%	 	 	634,106	 	 	 	35.7	%
	4115·FIT/Internet	 	 	61,156	 	 	 	14.1	%	 	 	55,591	 	 	 	13.1	%	 	 	5,565	 	 	 	68.4	%	 	 	59,751	 	 	 	13.5	%	 	 	1,405	 	 	 	-15.1	%	 	 	378,067	 	 	 	21.3	%
	4116
    · House	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	(350	)	 	 	-0.1	%	 	 	350	 	 	 	-3.8	%	 	 	-	 	 	 	0.0	%
	4117
    · House Posting	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	4118
    · Room Gift Certificates	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	Total 4110 ·
    Transient Room charges	 	 	415,775	 	 	 	95.8	%	 	 	412,968	 	 	 	97.0	%	 	 	2,807	 	 	 	34.5	%	 	 	429,391	 	 	 	96.9	%	 	 	(13,616	)	 	 	146.7	%	 	 	1,612,991	 	 	 	90.8	%
	4119
    · No Show	 	 	2,821	 	 	 	74.4	%	 	 	-	 	 	 	0.0	%	 	 	2,821	 	 	 	34.6	%	 	 	745	 	 	 	17.4	%	 	 	2,076	 	 	 	-22.4	%	 	 	-	 	 	 	0.0	%
	4120
    · Crib Rental	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	4150 ·
    Group	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.0	%	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.0	%	 	 	 	 	 	 	 	 
	4151
    · Group Association	 	 	2,445	 	 	 	64.5	%	 	 	-	 	 	 	0.0	%	 	 	2,445	 	 	 	30.0	%	 	 	-	 	 	 	0.0	%	 	 	2,445	 	 	 	-26.4	%	 	 	-	 	 	 	0.0	%
	4152
    · Group Corporate	 	 	1,385	 	 	 	36.6	%	 	 	135	 	 	 	0.0	%	 	 	1,250	 	 	 	15.4	%	 	 	-	 	 	 	0.0	%	 	 	1,385	 	 	 	-14.9	%	 	 	4,770	 	 	 	22.2	%
	4153
    · Group Smerf	 	 	-	 	 	 	0.0	%	 	 	4,274	 	 	 	1.0	%	 	 	(4,274	)	 	 	-52.5	%	 	 	4,922	 	 	 	114.8	%	 	 	(4,922	)	 	 	53.0	%	 	 	29,642	 	 	 	138.2	%
	4154·Group-Tour	 	 	11,398	 	 	 	300.8	%	 	 	8,306	 	 	 	2.0	%	 	 	3,092	 	 	 	38.0	%	 	 	8,045	 	 	 	187.6	%	 	 	3,353	 	 	 	-36.1	%	 	 	128,758	 	 	 	600.1	%
	Total
    4150 · Group	 	 	15,228	 	 	 	401.9	%	 	 	12,715	 	 	 	3.0	%	 	 	2,513	 	 	 	30.9	%	 	 	12,967	 	 	 	302.4	%	 	 	2,261	 	 	 	-24.4	%	 	 	163,170	 	 	 	760.5	%
	Total Revenue	 	 	433,824	 	 	 	100.0	%	 	 	425,684	 	 	 	100.0	%	 	 	8,140	 	 	 	100.0	%	 	 	443,103	 	 	 	100.0	%	 	 	(9,279	)	 	 	100.0	%	 	 	1,776,161	 	 	 	100.0	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Expense	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5000 ·
    Payroll & Benefits	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5100 ·
    Rooms Salaries & Wages	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5111000 ·
    Front Office	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5111170
    · Rooms Manager	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	5111160
    · Assistant Manager	 	 	5,754	 	 	 	1.3	%	 	 	4,534	 	 	 	1.1	%	 	 	1,220	 	 	 	15.0	%	 	 	-	 	 	 	0.0	%	 	 	5,754	 	 	 	-62.0	%	 	 	-	 	 	 	0.0	%
	5111199
    · Rooms Shared Services	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	5111600
    · Guest Service Agents	 	 	11,860	 	 	 	2.7	%	 	 	-	 	 	 	0.0	%	 	 	11,860	 	 	 	145.7	%	 	 	10,238	 	 	 	2.3	%	 	 	1,622	 	 	 	-17.5	%	 	 	40,704	 	 	 	2.3	%
	5111601
    · Front Office Bonus-	 	 	-	 	 	 	0.0	%	 	 	15,943	 	 	 	3.7	%	 	 	(15,943	)	 	 	-195.8	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	5111605
    · Reservationist	 	 	3,335	 	 	 	0.8	%	 	 	3,965	 	 	 	0.9	%	 	 	(630	)	 	 	-7.7	%	 	 	3,429	 	 	 	0.8	%	 	 	(94	)	 	 	1.0	%	 	 	26,016	 	 	 	1.5	%
	5111606
    · Reservationist - Bonus	 	 	672	 	 	 	0.2	%	 	 	-	 	 	 	0.0	%	 	 	672	 	 	 	8.3	%	 	 	756	 	 	 	0.2	%	 	 	(84	)	 	 	0.9	%	 	 	-	 	 	 	0.0	%
	5111610
    · Supervisor	 	 	(259	)	 	 	-0.1	%	 	 	-	 	 	 	0.0	%	 	 	(259	)	 	 	-3.2	%	 	 	4,335	 	 	 	1.0	%	 	 	(4,594	)	 	 	49.5	%	 	 	16,224	 	 	 	0.9	%
	5111640
    · Night Auditor	 	 	7,693	 	 	 	1.8	%	 	 	-	 	 	 	0.0	%	 	 	7,693	 	 	 	94.5	%	 	 	5,399	 	 	 	1.2	%	 	 	2,293	 	 	 	-24.7	%	 	 	16,920	 	 	 	1.0	%
	Total 5111000
    · Front Office	 	 	29,055	 	 	 	6.7	%	 	 	24,442	 	 	 	5.7	%	 	 	4,613	 	 	 	56.7	%	 	 	24,157	 	 	 	5.5	%	 	 	4,898	 	 	 	-52.8	%	 	 	99,864	 	 	 	5.6	%
	5111050 ·
    Front Office Taxes & Benefits	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5151
    · Rms Payroll Taxes	 	 	3,411	 	 	 	0.8	%	 	 	5,891	 	 	 	1.4	%	 	 	(2,480	)	 	 	-30.5	%	 	 	2,797	 	 	 	0.6	%	 	 	613	 	 	 	-6.6	%	 	 	9,420	 	 	 	0.5	%
	5152
    · Rms Workers'  Comp	 	 	384	 	 	 	0.1	%	 	 	225	 	 	 	0.1	%	 	 	159	 	 	 	2.0	%	 	 	557	 	 	 	0.1	%	 	 	(173	)	 	 	1.9	%	 	 	1,883	 	 	 	0.1	%
	5153
    · Rms Employ Benefits	 	 	1,223	 	 	 	0.3	%	 	 	2,964	 	 	 	0.7	%	 	 	(1,741	)	 	 	-21.4	%	 	 	4,114	 	 	 	0.9	%	 	 	(2,891	)	 	 	31.2	%	 	 	6,000	 	 	 	0.3	%
	5155
    · Rms PTO	 	 	1,286	 	 	 	0.3	%	 	 	1,693	 	 	 	0.4	%	 	 	(408	)	 	 	-5.0	%	 	 	491	 	 	 	0.1	%	 	 	795	 	 	 	-8.6	%	 	 	1,883	 	 	 	0.1	%
	5156
    · Rms Employ Meals	 	 	249	 	 	 	0.1	%	 	 	718	 	 	 	0.2	%	 	 	(469	)	 	 	-5.8	%	 	 	359	 	 	 	0.1	%	 	 	(110	)	 	 	1.2	%	 	 	7,536	 	 	 	0.4	%
	5199
    · Rooms Shared Services Fringes	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	Total 5111050
    · Front Office Taxes & Benefits	 	 	6,552	 	 	 	1.5	%	 	 	11,492	 	 	 	2.7	%	 	 	(4,940	)	 	 	-60.7	%	 	 	8,318	 	 	 	1.9	%	 	 	(1,765	)	 	 	19.0	%	 	 	26,722	 	 	 	1.5	%
	5112000 ·
    Housekeeping	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5112050
    · Housekeeping	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	5112170
    · Housekeeping Manager	 	 	6,613	 	 	 	1.5	%	 	 	-	 	 	 	0.0	%	 	 	6,613	 	 	 	81.2	%	 	 	4,580	 	 	 	1.0	%	 	 	2,033	 	 	 	-21.9	%	 	 	21,000	 	 	 	1.2	%
	5112500
    · Room Attendent	 	 	14,847	 	 	 	3.4	%	 	 	16,683	 	 	 	3.9	%	 	 	(1,836	)	 	 	-22.6	%	 	 	17,110	 	 	 	3.9	%	 	 	(2,263	)	 	 	24.4	%	 	 	41,840	 	 	 	2.4	%
	5112510
    · House Attendant	 	 	5,229	 	 	 	1.2	%	 	 	4,755	 	 	 	1.1	%	 	 	473	 	 	 	5.8	%	 	 	4,218	 	 	 	1.0	%	 	 	1,011	 	 	 	-10.9	%	 	 	8,772	 	 	 	0.5	%
	5112520
    · Laundry Attendant	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	5112530
    · Lead Room Supervisor	 	 	3,789	 	 	 	0.9	%	 	 	-	 	 	 	0.0	%	 	 	3,789	 	 	 	46.5	%	 	 	4,287	 	 	 	1.0	%	 	 	(498	)	 	 	5.4	%	 	 	21,456	 	 	 	1.2	%
	5112540
    · Housekeeping Supervisor	 	 	-	 	 	 	0.0	%	 	 	9,345	 	 	 	2.2	%	 	 	(9,345	)	 	 	-114.8	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	5112599
    · Housekeeping - Other pay	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	1,760	 	 	 	0.1	%
	Total 5112000
    · Housekeeping	 	 	30,478	 	 	 	7.0	%	 	 	30,783	 	 	 	7.2	%	 	 	(305	)	 	 	-3.8	%	 	 	30,195	 	 	 	6.8	%	 	 	283	 	 	 	-3.0	%	 	 	94,828	 	 	 	5.3	%
	5112050
    · Housekeeping Taxes & Benefits	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5112050
    · Housekeeping Taxes & Benefits - Other	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	5251
    · Housekeeping Payroll Taxes	 	 	2,013	 	 	 	0.5	%	 	 	-	 	 	 	0.0	%	 	 	2,013	 	 	 	24.7	%	 	 	2,157	 	 	 	0.5	%	 	 	(144	)	 	 	1.6	%	 	 	9,485	 	 	 	0.5	%
	5252
    · Housekeeping Workers' Comp	 	 	427	 	 	 	0.1	%	 	 	-	 	 	 	0.0	%	 	 	427	 	 	 	5.2	%	 	 	335	 	 	 	0.1	%	 	 	92	 	 	 	-1.0	%	 	 	2,372	 	 	 	0.1	%
	5253
    · Housekeeping Employee Benefits	 	 	343	 	 	 	0.1	%	 	 	-	 	 	 	0.0	%	 	 	343	 	 	 	4.2	%	 	 	-	 	 	 	0.0	%	 	 	343	 	 	 	-3.7	%	 	 	2,400	 	 	 	0.1	%
	5255
    · Housekeeping PTO Expense	 	 	880	 	 	 	0.2	%	 	 	-	 	 	 	0.0	%	 	 	880	 	 	 	10.8	%	 	 	208	 	 	 	0.0	%	 	 	672	 	 	 	-7.2	%	 	 	2,846	 	 	 	0.2	%
	5256
    · Hskpg-Employee Meals	 	 	376	 	 	 	0.1	%	 	 	-	 	 	 	0.0	%	 	 	376	 	 	 	4.6	%	 	 	598	 	 	 	0.1	%	 	 	(222	)	 	 	2.4	%	 	 	2,654	 	 	 	0.1	%
	5257
    · Shared PTO Expense	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	Total
    5112050 · Housekeeping Taxes & Benefits	 	 	4,039	 	 	 	0.9	%	 	 	-	 	 	 	0.0	%	 	 	4,039	 	 	 	49.6	%	 	 	3,298	 	 	 	0.7	%	 	 	741	 	 	 	-8.0	%	 	 	19,757	 	 	 	1.1	%
	Total 5100 ·
    Rooms Salaries & Wages	 	 	70,124	 	 	 	16.2	%	 	 	66,718	 	 	 	15.7	%	 	 	3,407	 	 	 	41.8	%	 	 	65,967	 	 	 	14.9	%	 	 	4,157	 	 	 	-44.8	%	 	 	241,171	 	 	 	13.6	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	8100 ·
    Rooms  Expenses	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	8100
    · Rooms  Expenses - Other	 	 	-	 	 	 	0.0	%	 	 	4,648	 	 	 	1.1	%	 	 	(4,648	)	 	 	-57.1	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8101
    · Comp Breakfast	 	 	36,863	 	 	 	8.5	%	 	 	37,675	 	 	 	8.9	%	 	 	(812	)	 	 	-10.0	%	 	 	30,550	 	 	 	6.9	%	 	 	6,314	 	 	 	-68.0	%	 	 	58,689	 	 	 	3.3	%
	8110
    · Guest Supplies	 	 	5,163	 	 	 	1.2	%	 	 	4,119	 	 	 	1.0	%	 	 	1,044	 	 	 	12.8	%	 	 	4,372	 	 	 	1.0	%	 	 	790	 	 	 	-8.5	%	 	 	28,417	 	 	 	1.6	%
	8111
    · In-Room Equipment	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8112
    · Guest Relations	 	 	113	 	 	 	0.0	%	 	 	122	 	 	 	0.0	%	 	 	(9	)	 	 	-0.1	%	 	 	185	 	 	 	0.0	%	 	 	(72	)	 	 	0.8	%	 	 	-	 	 	 	0.0	%
	8114
    · Guest Amenities	 	 	73	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	73	 	 	 	0.9	%	 	 	-	 	 	 	0.0	%	 	 	73	 	 	 	-0.8	%	 	 	-	 	 	 	0.0	%
	8115
    · Operating Supplies	 	 	1,174	 	 	 	0.3	%	 	 	1,071	 	 	 	0.3	%	 	 	103	 	 	 	1.3	%	 	 	1,620	 	 	 	0.4	%	 	 	(447	)	 	 	4.8	%	 	 	6,664	 	 	 	0.4	%
	8117
    · Newspapers	 	 	353	 	 	 	0.1	%	 	 	-	 	 	 	0.0	%	 	 	353	 	 	 	4.3	%	 	 	464	 	 	 	0.1	%	 	 	(111	)	 	 	1.2	%	 	 	1,142	 	 	 	0.1	%
	8120
    · Cleaning Supplies	 	 	397	 	 	 	0.1	%	 	 	361	 	 	 	0.1	%	 	 	36	 	 	 	0.4	%	 	 	414	 	 	 	0.1	%	 	 	(18	)	 	 	0.2	%	 	 	2,739	 	 	 	0.2	%
	8129
    · Linens	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8130
    · Outside Laundry	 	 	24,092	 	 	 	5.6	%	 	 	19,555	 	 	 	4.6	%	 	 	4,537	 	 	 	55.7	%	 	 	18,880	 	 	 	4.3	%	 	 	5,213	 	 	 	-56.2	%	 	 	107,488	 	 	 	6.1	%
	8135
    · Uniforms	 	 	556	 	 	 	0.1	%	 	 	1,221	 	 	 	0.3	%	 	 	(665	)	 	 	-8.2	%	 	 	1,012	 	 	 	0.2	%	 	 	(457	)	 	 	4.9	%	 	 	4,316	 	 	 	0.2	%
	8149
    · Group Commissions	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8150
    · TA Commissions	 	 	1,353	 	 	 	0.3	%	 	 	1,512	 	 	 	0.4	%	 	 	(159	)	 	 	-2.0	%	 	 	1,539	 	 	 	0.3	%	 	 	(186	)	 	 	2.0	%	 	 	10,095	 	 	 	0.6	%
	8152
    · Auto Expense (van)	 	 	350	 	 	 	0.1	%	 	 	-	 	 	 	0.0	%	 	 	350	 	 	 	4.3	%	 	 	-	 	 	 	0.0	%	 	 	350	 	 	 	-3.8	%	 	 	1,200	 	 	 	0.1	%
	8151
    · Computer Maint. & Support	 	 	2,202	 	 	 	0.5	%	 	 	2,670	 	 	 	0.6	%	 	 	(468	)	 	 	-5.7	%	 	 	2,982	 	 	 	0.7	%	 	 	(780	)	 	 	8.4	%	 	 	4,800	 	 	 	0.3	%
	8155
    · Reservation Expense	 	 	9,375	 	 	 	2.2	%	 	 	4,926	 	 	 	1.2	%	 	 	4,450	 	 	 	54.7	%	 	 	4,918	 	 	 	1.1	%	 	 	4,458	 	 	 	-48.0	%	 	 	24,000	 	 	 	1.4	%
	8156
    · Concierge Expenses	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8157
    · Walk Expense	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8158
    · Equipment Repair	 	 	66	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	66	 	 	 	0.8	%	 	 	-	 	 	 	0.0	%	 	 	66	 	 	 	-0.7	%	 	 	618	 	 	 	0.0	%
	8164
    · Decorations	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	(254	)	 	 	-0.1	%	 	 	254	 	 	 	-2.7	%	 	 	600	 	 	 	0.0	%
	8165
    · Comp In-Room Coffee	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8170
    · Contract Labor	 	 	67	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	67	 	 	 	0.8	%	 	 	-	 	 	 	0.0	%	 	 	67	 	 	 	-0.7	%	 	 	-	 	 	 	0.0	%
	8174
    · Music & Entertainment	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8175
    · Cable TV	 	 	2,630	 	 	 	0.6	%	 	 	3,624	 	 	 	0.9	%	 	 	(995	)	 	 	-12.2	%	 	 	4,445	 	 	 	1.0	%	 	 	(1,815	)	 	 	19.6	%	 	 	10,200	 	 	 	0.6	%
	8178
    · Express Mail	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8184
    · Printing	 	 	438	 	 	 	0.1	%	 	 	442	 	 	 	0.1	%	 	 	(4	)	 	 	0.0	%	 	 	440	 	 	 	0.1	%	 	 	(2	)	 	 	0.0	%	 	 	1,200	 	 	 	0.1	%
	8185
    · Telephone Cell & Radio	 	 	224	 	 	 	0.1	%	 	 	-	 	 	 	0.0	%	 	 	224	 	 	 	2.8	%	 	 	386	 	 	 	0.1	%	 	 	(161	)	 	 	1.7	%	 	 	600	 	 	 	0.0	%
	8190
    · Office Supplies	 	 	786	 	 	 	0.2	%	 	 	-	 	 	 	0.0	%	 	 	786	 	 	 	9.7	%	 	 	1,146	 	 	 	0.3	%	 	 	(360	)	 	 	3.9	%	 	 	2,400	 	 	 	0.1	%
	8191
    · Employee Relations & Training	 	 	61	 	 	 	0.0	%	 	 	118	 	 	 	0.0	%	 	 	(57	)	 	 	-0.7	%	 	 	96	 	 	 	0.0	%	 	 	(35	)	 	 	0.4	%	 	 	1,500	 	 	 	0.1	%
	8192
    · Building Rent - Housekeeping	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	4,755	 	 	 	1.1	%	 	 	(4,755	)	 	 	51.2	%	 	 	12,000	 	 	 	0.7	%
	8193
    · License & Permits	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	600	 	 	 	0.0	%
	8195
    · Equipment Lease	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	205	 	 	 	0.0	%	 	 	(205	)	 	 	2.2	%	 	 	600	 	 	 	0.0	%
	8196
    · Business Travel	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8197
    · Business Meals	 	 	-	 	 	 	0.0	%	 	 	101	 	 	 	0.0	%	 	 	(101	)	 	 	-1.2	%	 	 	125	 	 	 	0.0	%	 	 	(125	)	 	 	1.3	%	 	 	-	 	 	 	0.0	%
	8199
    · Final Room Prep - Renovated Rms	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8225
    · Laundry Expense	 	 	9	 	 	 	0.0	%	 	 	22	 	 	 	0.0	%	 	 	(14	)	 	 	-0.2	%	 	 	13	 	 	 	0.0	%	 	 	(5	)	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	Total
    8100 · Rooms  Expenses	 	 	86,347	 	 	 	19.9	%	 	 	82,187	 	 	 	19.3	%	 	 	4,160	 	 	 	51.1	%	 	 	78,294	 	 	 	17.7	%	 	 	8,053	 	 	 	-86.8	%	 	 	279,868	 	 	 	15.8	%
	Total
    Expense	 	 	156,471	 	 	 	36.1	%	 	 	148,905	 	 	 	35.0	%	 	 	7,566	 	 	 	92.9	%	 	 	144,261	 	 	 	32.6	%	 	 	12,210	 	 	 	-131.6	%	 	 	521,039	 	 	 	29.3	%
	Net
    Income	 	$	277,353	 	 	 	63.9	%	 	$	276,779	 	 	 	65.0	%	 	 	574	 	 	 	7.1	%	 	$	298,842	 	 	 	67.4	%	 	$	(21,489	)	 	 	231.6	%	 	$	1,255,122	 	 	 	70.7	%

 

 

	 	Page 5 of 21	109.2. Ex 18(a)- 2nd Part - Orchards Inn March 13 Issue / Rooms - AvB

 

 

 

    	 	 	 

    	 

     

 

Orchards Inn & Restaurant, LLC.

Rooms Department

January through March 2013

 

 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	TOTAL	 
	 	 	Jan 13	 	 	% of

Income	 	 	Feb 13	 	 	% of

Income	 	 	Mar 13	 	 	% of

Income	 	 	Jan - Mar

13	 	 	% of 

Income	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Ordinary Income/Expense Income	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4100 · Room Charges	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4110 · Transient Room charges	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4111 · Best Available Rate	 	 	8,793.75	 	 	 	8.75	%	 	 	28,443.55	 	 	 	21.89	%	 	 	47,335.00	 	 	 	23.28	%	 	 	84,572.30	 	 	 	19.5	%
	4114 · Discount	 	 	73,728.65	 	 	 	73.33	%	 	 	73,406.60	 	 	 	56.48	%	 	 	122,912.08	 	 	 	60.45	%	 	 	270,047.33	 	 	 	62.25	%
	4115·FIT/Internet	 	 	16,816.85	 	 	 	16.73	%	 	 	17,067.75	 	 	 	13.13	%	 	 	27,270.97	 	 	 	13.41	%	 	 	61,155.57	 	 	 	14.1	%
	Total 4110 · Transient Room charges	 	 	99,339.25	 	 	 	98.8	%	 	 	118,917.90	 	 	 	91.5	%	 	 	197,518.05	 	 	 	97.15	%	 	 	415,775.20	 	 	 	95.84	%
	4119 · No Show	 	 	1,074.35	 	 	 	1.07	%	 	 	1,125.00	 	 	 	0.87	%	 	 	621.28	 	 	 	0.31	%	 	 	2,820.63	 	 	 	0.65	%
	4150 · Group	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4151 · Group Association	 	 	0.00	 	 	 	0.0	%	 	 	805.00	 	 	 	0.62	%	 	 	1,640.00	 	 	 	0.81	%	 	 	2,445.00	 	 	 	0.56	%
	4152 · Group Corporate	 	 	135.00	 	 	 	0.13	%	 	 	1,250.00	 	 	 	0.96	%	 	 	0.00	 	 	 	0.0	%	 	 	1,385.00	 	 	 	0.32	%
	4153 · Group Smerf	 	 	0.00	 	 	 	0.0	%	 	 	0.00	 	 	 	0.0	%	 	 	0.00	 	 	 	0.0	%	 	 	0.00	 	 	 	0.0	%
	4154·Group-Tour	 	 	0.00	 	 	 	0.0	%	 	 	7,861.00	 	 	 	6.05	%	 	 	3,537.24	 	 	 	1.74	%	 	 	11,398.24	 	 	 	2.63	%
	Total 4150 · Group	 	 	135.00	 	 	 	0.13	%	 	 	9,916.00	 	 	 	7.63	%	 	 	5,177.24	 	 	 	2.55	%	 	 	15,228.24	 	 	 	3.51	%
	Total 4100 · Room Charges	 	 	100,548.60	 	 	 	100.0	%	 	 	129,958.90	 	 	 	100.0	%	 	 	203,316.57	 	 	 	100.0	%	 	 	433,824.07	 	 	 	100.0	%
	Total Income	 	 	100,548.60	 	 	 	100.0	%	 	 	129,958.90	 	 	 	100.0	%	 	 	203,316.57	 	 	 	100.0	%	 	 	433,824.07	 	 	 	100.0	%
	Gross Profit	 	 	100,548.60	 	 	 	100.0	%	 	 	129,958.90	 	 	 	100.0	%	 	 	203,316.57	 	 	 	100.0	%	 	 	433,824.07	 	 	 	100.0	%
	Expense	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5000 · Payroll & Benefits	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5100 · Rooms Salaries & Wages	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5111000 · Front Office	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5111160 · Assistant Manager	 	 	1,507.70	 	 	 	1.5	%	 	 	1,659.64	 	 	 	1.28	%	 	 	2,586.77	 	 	 	1.27	%	 	 	5,754.11	 	 	 	1.33	%
	5111600 · Guest Service Agents	 	 	2,789.62	 	 	 	2.77	%	 	 	3,644.87	 	 	 	2.81	%	 	 	5,425.23	 	 	 	2.67	%	 	 	11,859.72	 	 	 	2.73	%
	5111605 · Reservationist	 	 	1,003.53	 	 	 	1.0	%	 	 	788.27	 	 	 	0.61	%	 	 	1,543.58	 	 	 	0.76	%	 	 	3,335.38	 	 	 	0.77	%
	5111606 · Reservationist - Bonus	 	 	196.00	 	 	 	0.2	%	 	 	280.00	 	 	 	0.22	%	 	 	196.00	 	 	 	0.1	%	 	 	672.00	 	 	 	0.16	%
	5111610 · Supervisor	 	 	96.69	 	 	 	0.1	%	 	 	344.59	 	 	 	0.27	%	 	 	-700.00	 	 	 	-0.34	%	 	 	-258.72	 	 	 	-0.06	%
	5111640 · Night Auditor	 	 	2,204.12	 	 	 	2.19	%	 	 	2,156.32	 	 	 	1.66	%	 	 	3,332.09	 	 	 	1.64	%	 	 	7,692.53	 	 	 	1.77	%
	Total 5111000 · Front Office	 	 	7,797.66	 	 	 	7.76	%	 	 	8,873.69	 	 	 	6.83	%	 	 	12,383.67	 	 	 	6.09	%	 	 	29,055.02	 	 	 	6.7	%
	5111050 · Front Office Taxes & Benefits	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5151 · Rms Payroll Taxes	 	 	1,231.68	 	 	 	1.23	%	 	 	930.25	 	 	 	0.72	%	 	 	1,248.91	 	 	 	0.61	%	 	 	3,410.84	 	 	 	0.79	%
	5152 · Rms Workers'  Comp	 	 	127.95	 	 	 	0.13	%	 	 	127.95	 	 	 	0.1	%	 	 	127.95	 	 	 	0.06	%	 	 	383.85	 	 	 	0.09	%
	5153 · Rms Employ Benefits	 	 	409.03	 	 	 	0.41	%	 	 	241.34	 	 	 	0.19	%	 	 	572.63	 	 	 	0.28	%	 	 	1,223.00	 	 	 	0.28	%
	5155 · Rms PTO	 	 	874.65	 	 	 	0.87	%	 	 	269.35	 	 	 	0.21	%	 	 	141.83	 	 	 	0.07	%	 	 	1,285.83	 	 	 	0.3	%
	5156 · Rms Employ Meals	 	 	76.61	 	 	 	0.08	%	 	 	65.73	 	 	 	0.05	%	 	 	106.41	 	 	 	0.05	%	 	 	248.75	 	 	 	0.06	%
	Total 5111050 · Front Office Taxes & Benefits	 	 	2,719.92	 	 	 	2.71	%	 	 	1,634.62	 	 	 	1.26	%	 	 	2,197.73	 	 	 	1.08	%	 	 	6,552.27	 	 	 	1.51	%
	5112000 · Housekeeping	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5112150 · Annex - Room Attendant Supervis	 	 	0.00	 	 	 	0.0	%	 	 	0.00	 	 	 	0.0	%	 	 	3,025.95	 	 	 	1.49	%	 	 	3,025.95	 	 	 	0.7	%
	5112170 · Housekeeping Manager	 	 	1,671.73	 	 	 	1.66	%	 	 	2,295.13	 	 	 	1.77	%	 	 	2,645.84	 	 	 	1.3	%	 	 	6,612.70	 	 	 	1.52	%
	5112500 · Room Attendent	 	 	4,405.76	 	 	 	4.38	%	 	 	4,484.63	 	 	 	3.45	%	 	 	5,956.78	 	 	 	2.93	%	 	 	14,847.17	 	 	 	3.42	%
	5112510 · House Attendant	 	 	1,532.38	 	 	 	1.52	%	 	 	1,565.13	 	 	 	1.2	%	 	 	2,131.18	 	 	 	1.05	%	 	 	5,228.69	 	 	 	1.21	%
	5112530 · Lead Room Supervisor	 	 	1,344.50	 	 	 	1.34	%	 	 	649.00	 	 	 	0.5	%	 	 	1,795.75	 	 	 	0.88	%	 	 	3,789.25	 	 	 	0.87	%
	5112550 · Annex - Room Attendant	 	 	0.00	 	 	 	0.0	%	 	 	0.00	 	 	 	0.0	%	 	 	0.00	 	 	 	0.0	%	 	 	0.00	 	 	 	0.0	%
	5112560 · Annex - House Attendant	 	 	0.00	 	 	 	0.0	%	 	 	0.00	 	 	 	0.0	%	 	 	0.00	 	 	 	0.0	%	 	 	0.00	 	 	 	0.0	%
	5112570 · Annex - Lead Room Attendant	 	 	0.00	 	 	 	0.0	%	 	 	0.00	 	 	 	0.0	%	 	 	-3,025.95	 	 	 	-1.49	%	 	 	-3,025.95	 	 	 	-0.7	%
	Total 5112000 · Housekeeping	 	 	8,954.37	 	 	 	8.91	%	 	 	8,993.89	 	 	 	6.92	%	 	 	12,529.55	 	 	 	6.16	%	 	 	30,477.81	 	 	 	7.03	%
	5112050 · Housekeeping Taxes & Benefits	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5251 · Housekeeping Payroll Taxes	 	 	1,025.50	 	 	 	1.02	%	 	 	528.54	 	 	 	0.41	%	 	 	459.16	 	 	 	0.23	%	 	 	2,013.20	 	 	 	0.46	%
	5252 · Housekeeping Workers' Comp	 	 	152.08	 	 	 	0.15	%	 	 	144.03	 	 	 	0.11	%	 	 	130.89	 	 	 	0.06	%	 	 	427.00	 	 	 	0.1	%
	5253 · Housekeeping Employee Benefits	 	 	131.59	 	 	 	0.13	%	 	 	124.63	 	 	 	0.1	%	 	 	86.64	 	 	 	0.04	%	 	 	342.86	 	 	 	0.08	%
	5255 · Housekeeping PTO Expense	 	 	571.21	 	 	 	0.57	%	 	 	181.04	 	 	 	0.14	%	 	 	127.68	 	 	 	0.06	%	 	 	879.93	 	 	 	0.2	%
	5256 · Hskpg-Employee Meals	 	 	124.99	 	 	 	0.12	%	 	 	101.57	 	 	 	0.08	%	 	 	149.42	 	 	 	0.07	%	 	 	375.98	 	 	 	0.09	%
	Total 5112050 · Housekeeping Taxes & Benefits	 	 	2,005.37	 	 	 	1.99	%	 	 	1,079.81	 	 	 	0.83	%	 	 	953.79	 	 	 	0.47	%	 	 	4,038.97	 	 	 	0.93	%
	Total 5100 · Rooms Salaries & Wages	 	 	21,477.32	 	 	 	21.36	%	 	 	20,582.01	 	 	 	15.84	%	 	 	28,064.74	 	 	 	13.8	%	 	 	70,124.07	 	 	 	16.16	%
	Total 5000 · Payroll & Benefits	 	 	21,477.32	 	 	 	21.36	%	 	 	20,582.01	 	 	 	15.84	%	 	 	28,064.74	 	 	 	13.8	%	 	 	70,124.07	 	 	 	16.16	%
	8100 · Rooms  Expenses	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	8101 · Comp Breakfast	 	 	9,400.08	 	 	 	9.35	%	 	 	10,244.71	 	 	 	7.88	%	 	 	17,218.51	 	 	 	8.47	%	 	 	36,863.30	 	 	 	8.5	%
	8110 · Guest Supplies	 	 	1,158.13	 	 	 	1.15	%	 	 	1,875.24	 	 	 	1.44	%	 	 	2,129.47	 	 	 	1.05	%	 	 	5,162.84	 	 	 	1.19	%
	8112 · Guest Relations	 	 	44.83	 	 	 	0.05	%	 	 	41.79	 	 	 	0.03	%	 	 	25.98	 	 	 	0.01	%	 	 	112.60	 	 	 	0.03	%
	8114 · Guest Amenities	 	 	0.00	 	 	 	0.0	%	 	 	37.51	 	 	 	0.03	%	 	 	35.86	 	 	 	0.02	%	 	 	73.37	 	 	 	0.02	%
	8115 · Operating Supplies	 	 	696.79	 	 	 	0.69	%	 	 	220.06	 	 	 	0.17	%	 	 	256.84	 	 	 	0.13	%	 	 	1,173.69	 	 	 	0.27	%
	8117 · Newspapers	 	 	0.00	 	 	 	0.0	%	 	 	246.68	 	 	 	0.19	%	 	 	106.46	 	 	 	0.05	%	 	 	353.14	 	 	 	0.08	%
	8120 · Cleaning Supplies	 	 	0.00	 	 	 	0.0	%	 	 	309.00	 	 	 	0.24	%	 	 	87.96	 	 	 	0.04	%	 	 	396.96	 	 	 	0.09	%
	8130 · Outside Laundry	 	 	6,643.52	 	 	 	6.61	%	 	 	7,710.06	 	 	 	5.93	%	 	 	9,738.79	 	 	 	4.79	%	 	 	24,092.37	 	 	 	5.55	%
	8135 · Uniforms	 	 	267.89	 	 	 	0.27	%	 	 	184.25	 	 	 	0.14	%	 	 	103.72	 	 	 	0.05	%	 	 	555.86	 	 	 	0.13	%
	8150 · TA Commissions	 	 	204.08	 	 	 	0.2	%	 	 	679.83	 	 	 	0.52	%	 	 	469.35	 	 	 	0.23	%	 	 	1,353.26	 	 	 	0.31	%
	8151 · Computer Maint. & Support	 	 	801.41	 	 	 	0.8	%	 	 	715.99	 	 	 	0.55	%	 	 	684.46	 	 	 	0.34	%	 	 	2,201.86	 	 	 	0.51	%
	8152 · Auto Expense (van)	 	 	66.13	 	 	 	0.07	%	 	 	160.99	 	 	 	0.12	%	 	 	123.12	 	 	 	0.06	%	 	 	350.24	 	 	 	0.08	%
	8155 · Reservation Expense	 	 	2,123.36	 	 	 	2.11	%	 	 	2,505.70	 	 	 	1.93	%	 	 	4,746.43	 	 	 	2.34	%	 	 	9,375.49	 	 	 	2.16	%
	8158 · Equipment Repair	 	 	66.13	 	 	 	0.07	%	 	 	0.00	 	 	 	0.0	%	 	 	0.00	 	 	 	0.0	%	 	 	66.13	 	 	 	0.02	%
	8170 · Contract Labor	 	 	0.00	 	 	 	0.0	%	 	 	0.00	 	 	 	0.0	%	 	 	67.46	 	 	 	0.03	%	 	 	67.46	 	 	 	0.02	%
	8175 · Cable TV	 	 	774.22	 	 	 	0.77	%	 	 	769.92	 	 	 	0.59	%	 	 	1,085.67	 	 	 	0.53	%	 	 	2,629.81	 	 	 	0.61	%
	8184 · Printing	 	 	26.80	 	 	 	0.03	%	 	 	362.22	 	 	 	0.28	%	 	 	49.24	 	 	 	0.02	%	 	 	438.26	 	 	 	0.1	%
	8185 · Telephone Cell & Radio	 	 	66.13	 	 	 	0.07	%	 	 	96.60	 	 	 	0.07	%	 	 	61.56	 	 	 	0.03	%	 	 	224.29	 	 	 	0.05	%
	8190 · Office Supplies	 	 	186.08	 	 	 	0.19	%	 	 	371.08	 	 	 	0.29	%	 	 	228.89	 	 	 	0.11	%	 	 	786.05	 	 	 	0.18	%
	8191 · Employee Relations & Training	 	 	23.15	 	 	 	0.02	%	 	 	0.00	 	 	 	0.0	%	 	 	38.17	 	 	 	0.02	%	 	 	61.32	 	 	 	0.01	%
	8225 · Laundry Expense	 	 	8.60	 	 	 	0.01	%	 	 	0.00	 	 	 	0.0	%	 	 	0.00	 	 	 	0.0	%	 	 	8.60	 	 	 	0.0	%
	Total 8100 · Rooms  Expenses	 	 	22,557.33	 	 	 	22.43	%	 	 	26,531.63	 	 	 	20.42	%	 	 	37,257.94	 	 	 	18.33	%	 	 	86,346.90	 	 	 	19.9	%
	Total Expense	 	 	44,034.65	 	 	 	43.79	%	 	 	47,113.64	 	 	 	36.25	%	 	 	65,322.68	 	 	 	32.13	%	 	 	156,470.97	 	 	 	36.07	%
	Net Ordinary Income	 	 	56,513.95	 	 	 	56.21	%	 	 	82,845.26	 	 	 	63.75	%	 	 	137,993.89	 	 	 	67.87	%	 	 	277,353.10	 	 	 	63.93	%
	Net Income	 	 	56,513.95	 	 	 	56.21	%	 	 	82,845.26	 	 	 	63.75	%	 	 	137,993.89	 	 	 	67.87	%	 	 	277,353.10	 	 	 	63.93	%

 

 

	 	Page 6 of 21	109.2. Ex 18(a)- 2nd Part - Orchards Inn March 13 Issue / Rooms

 

 

 

    	 	 	 

    	 

     

 

 

Orchards Inn and Restaurant

F&B Department

Actual vs. Budget and Prior Year

March 2013

 

	 	 	Current
    Month	 
	 	 	Actual	 	 	%
    to

    Revenue	 	 	Budget	 	 	%
    to

    Revenue	 	 	Variance	 	 	%
    to

    Revenue	 	 	Prior
    Year	 	 	%
    to

    Revenue	 	 	Variance	 	 	 	% to

    Revenue	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Revenue	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4300 · Food & Beverage
    Revenue	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Food Revenue	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4311
    · Restaurant Breakfast	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	4312
    · Restaurant Lunch	 	 	127,071	 	 	 	41.0	%	 	 	103,984	 	 	 	44.2	%	 	 	23,086	 	 	 	30.9	%	 	 	96,867	 	 	 	44.2	%	 	 	30,204	 	 	 	33.3	%
	4313
    · Restaurant Dinner	 	 	96,762	 	 	 	31.2	%	 	 	65,947	 	 	 	28.1	%	 	 	30,815	 	 	 	41.3	%	 	 	61,434	 	 	 	28.1	%	 	 	35,329	 	 	 	38.9	%
	Total
    Food Revenue	 	 	223,833	 	 	 	72.3	%	 	 	169,932	 	 	 	54.9	%	 	 	53,902	 	 	 	72.2	%	 	 	158,301	 	 	 	51.1	%	 	 	65,533	 	 	 	72.2	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Beverage Revenue	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4314
    · Restaurant Beer Sales	 	 	26,165	 	 	 	8.5	%	 	 	19,956	 	 	 	8.5	%	 	 	6,209	 	 	 	8.3	%	 	 	18,590	 	 	 	8.5	%	 	 	7,575	 	 	 	8.3	%
	4315
    · Restaurant Wine Sales	 	 	6,482	 	 	 	2.1	%	 	 	3,955	 	 	 	1.7	%	 	 	2,527	 	 	 	3.4	%	 	 	3,684	 	 	 	1.7	%	 	 	2,798	 	 	 	3.1	%
	4316
    · Restaurant Liquor Sales	 	 	53,161	 	 	 	17.2	%	 	 	41,158	 	 	 	17.5	%	 	 	12,003	 	 	 	16.1	%	 	 	38,341	 	 	 	17.5	%	 	 	14,820	 	 	 	16.3	%
	Total
    Beverage Revenue	 	 	85,808	 	 	 	27.7	%	 	 	65,068	 	 	 	27.7	%	 	 	20,739	 	 	 	27.8	%	 	 	60,615	 	 	 	27.7	%	 	 	25,193	 	 	 	27.8	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total 4310 · Restaurant
    Sales	 	 	309,641	 	 	 	100.0	%	 	 	235,000	 	 	 	100.0	%	 	 	74,641	 	 	 	100.0	%	 	 	218,915	 	 	 	100.0	%	 	 	90,725	 	 	 	100.0	%
	Banquet Revenue	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4324
    · Banquet Dinner	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	4331
    · Banquet Meeting Room	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	Total
    4320 · Banquet Revenue	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	Total 4300 · Food &
    Beverage Revenue	 	 	309,641	 	 	 	100.0	%	 	 	235,000	 	 	 	100.0	%	 	 	74,641	 	 	 	100.0	%	 	 	218,915	 	 	 	100.0	%	 	 	90,725	 	 	 	100.0	%
	Total Revenue	 	 	309,641	 	 	 	100.0	%	 	 	235,000	 	 	 	100.0	%	 	 	74,641	 	 	 	100.0	%	 	 	218,915	 	 	 	100.0	%	 	 	90,725	 	 	 	100.0	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Cost of Goods Sold	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	6300 · Cost of Food &
    Beverage	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	6310 · Restaurant Cost
    of Sales	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	631001
    · Meat	 	 	8,160	 	 	 	3.6	%	 	 	-	 	 	 	0.0	%	 	 	8,160	 	 	 	15.1	%	 	 	6,531	 	 	 	4.1	%	 	 	1,629	 	 	 	2.5	%
	631002
    · Seafood	 	 	4,998	 	 	 	2.2	%	 	 	-	 	 	 	0.0	%	 	 	4,998	 	 	 	9.3	%	 	 	3,472	 	 	 	2.2	%	 	 	1,526	 	 	 	2.3	%
	631003
    · Poultry	 	 	4,641	 	 	 	2.1	%	 	 	-	 	 	 	0.0	%	 	 	4,641	 	 	 	8.6	%	 	 	3,566	 	 	 	2.3	%	 	 	1,075	 	 	 	1.6	%
	631004
    · Produce	 	 	11,329	 	 	 	5.1	%	 	 	-	 	 	 	0.0	%	 	 	11,329	 	 	 	21.0	%	 	 	7,837	 	 	 	5.0	%	 	 	3,493	 	 	 	5.3	%
	631005
    · Dairy	 	 	5,062	 	 	 	2.3	%	 	 	-	 	 	 	0.0	%	 	 	5,062	 	 	 	9.4	%	 	 	4,444	 	 	 	2.8	%	 	 	618	 	 	 	0.9	%
	631006
    · Bread	 	 	6,837	 	 	 	3.1	%	 	 	-	 	 	 	0.0	%	 	 	6,837	 	 	 	12.7	%	 	 	5,568	 	 	 	3.5	%	 	 	1,269	 	 	 	1.9	%
	631007
    · Other Food	 	 	5,298	 	 	 	2.4	%	 	 	-	 	 	 	0.0	%	 	 	5,298	 	 	 	9.8	%	 	 	7,076	 	 	 	4.5	%	 	 	(1,778	)	 	 	-2.7	%
	631008
    · Comp Breakfast Food	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	631009
    · Cost of Goods Sold-EDR	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	631010
    · Taos - Grand Opening, Food	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	6310
    · Restaurant Cost of Sales - Other	 	 	-	 	 	 	0.0	%	 	 	42,483	 	 	 	25.0	%	 	 	(42,483	)	 	 	-78.8	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	Cost
    of Sales - Food	 	 	46,324	 	 	 	20.7	%	 	 	42,483	 	 	 	25.0	%	 	 	3,842	 	 	 	7.1	%	 	 	38,492	 	 	 	24.3	%	 	 	7,832	 	 	 	12.0	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	6311
    · Cost of Goods-Liquor	 	 	6,236	 	 	 	11.7	%	 	 	6,585	 	 	 	16.0	%	 	 	(349	)	 	 	-2.9	%	 	 	3,978	 	 	 	10.4	%	 	 	2,258	 	 	 	15.2	%
	6312
    · Cost of Goods - Wine	 	 	1,972	 	 	 	30.4	%	 	 	1,186	 	 	 	30.0	%	 	 	785	 	 	 	31.1	%	 	 	1,179	 	 	 	32.0	%	 	 	793	 	 	 	28.3	%
	6313
    · Cost of Goods-Beer	 	 	5,071	 	 	 	19.4	%	 	 	3,991	 	 	 	20.0	%	 	 	1,080	 	 	 	17.4	%	 	 	1,555	 	 	 	8.4	%	 	 	3,516	 	 	 	46.4	%
	Cost
    of Sales - Beverage	 	 	13,279	 	 	 	15.5	%	 	 	11,763	 	 	 	18.1	%	 	 	1,516	 	 	 	7.3	%	 	 	6,712	 	 	 	11.1	%	 	 	6,567	 	 	 	26.1	%
	Total
    COGS	 	 	59,604	 	 	 	19.2	%	 	 	54,246	 	 	 	23.1	%	 	 	5,358	 	 	 	7.2	%	 	 	45,204	 	 	 	20.6	%	 	 	14,399	 	 	 	15.9	%
	Gross Profit	 	 	250,037	 	 	 	80.8	%	 	 	180,754	 	 	 	76.9	%	 	 	69,283	 	 	 	92.8	%	 	 	173,711	 	 	 	79.4	%	 	 	76,326	 	 	 	84.1	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Expense	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5000 · Payroll &
    Benefits	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5300000 · F&B Salaries
    & Wages	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5363000 · Restaurant
    Salary & Wages	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5300000
    · F&B Salaries & Wages - Other	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	5363150
    · Restaurant Supervisor	 	 	367	 	 	 	0.1	%	 	 	-	 	 	 	0.0	%	 	 	367	 	 	 	0.5	%	 	 	-	 	 	 	0.0	%	 	 	367	 	 	 	0.4	%
	5363160
    · Kitchen Manager	 	 	244	 	 	 	0.1	%	 	 	-	 	 	 	0.0	%	 	 	244	 	 	 	0.3	%	 	 	-	 	 	 	0.0	%	 	 	244	 	 	 	0.3	%
	5363170
    · Restaurant Manager	 	 	6,962	 	 	 	2.2	%	 	 	7,920	 	 	 	3.4	%	 	 	(958	)	 	 	-1.3	%	 	 	5,885	 	 	 	2.7	%	 	 	1,077	 	 	 	1.2	%
	5363171
    · Asst Restaurant Manager	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	5363180
    · Restaurant Assistant Manager	 	 	5,684	 	 	 	1.8	%	 	 	-	 	 	 	0.0	%	 	 	5,684	 	 	 	7.6	%	 	 	371	 	 	 	0.2	%	 	 	5,313	 	 	 	5.9	%
	5363199
    · F&B Shared Services	 	 	(1,786	)	 	 	-0.6	%	 	 	-	 	 	 	0.0	%	 	 	(1,786	)	 	 	-2.4	%	 	 	344	 	 	 	0.2	%	 	 	(2,130	)	 	 	-2.3	%
	5363300
    · Server	 	 	9,308	 	 	 	3.0	%	 	 	8,410	 	 	 	3.6	%	 	 	898	 	 	 	1.2	%	 	 	6,643	 	 	 	3.0	%	 	 	2,665	 	 	 	2.9	%
	5363305
    · Expeditor	 	 	2,717	 	 	 	0.9	%	 	 	2,123	 	 	 	0.9	%	 	 	593	 	 	 	0.8	%	 	 	776	 	 	 	0.4	%	 	 	1,940	 	 	 	2.1	%
	5363310
    · Busser	 	 	2,000	 	 	 	0.6	%	 	 	2,454	 	 	 	1.0	%	 	 	(454	)	 	 	-0.6	%	 	 	1,938	 	 	 	0.9	%	 	 	62	 	 	 	0.1	%
	5363320
    · Bartender	 	 	3,824	 	 	 	1.2	%	 	 	3,726	 	 	 	1.6	%	 	 	98	 	 	 	0.1	%	 	 	2,943	 	 	 	1.3	%	 	 	881	 	 	 	1.0	%
	5363330·Cashier/Hostess	 	 	4,847	 	 	 	1.6	%	 	 	4,850	 	 	 	2.1	%	 	 	(4	)	 	 	0.0	%	 	 	3,831	 	 	 	1.7	%	 	 	1,016	 	 	 	1.1	%
	5363400·Warewasher/Dishwasher	 	 	7,038	 	 	 	2.3	%	 	 	6,243	 	 	 	2.7	%	 	 	795	 	 	 	1.1	%	 	 	4,931	 	 	 	2.3	%	 	 	2,106	 	 	 	2.3	%
	5363420
    · Cook I	 	 	14,450	 	 	 	4.7	%	 	 	20,475	 	 	 	8.7	%	 	 	(6,025	)	 	 	-8.1	%	 	 	12,208	 	 	 	5.6	%	 	 	2,243	 	 	 	2.5	%
	5363430
    · Cook II	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	1,749	 	 	 	0.8	%	 	 	(1,749	)	 	 	-1.9	%
	5363440
    · Cook III	 	 	5,758	 	 	 	1.9	%	 	 	-	 	 	 	0.0	%	 	 	5,758	 	 	 	7.7	%	 	 	2,216	 	 	 	1.0	%	 	 	3,542	 	 	 	3.9	%
	5363450
    · Chef	 	 	4,758	 	 	 	1.5	%	 	 	10,977	 	 	 	4.7	%	 	 	(6,218	)	 	 	-8.3	%	 	 	1,912	 	 	 	0.9	%	 	 	2,846	 	 	 	3.1	%
	5363460
    · Head Chef	 	 	3,779	 	 	 	1.2	%	 	 	-	 	 	 	0.0	%	 	 	3,779	 	 	 	5.1	%	 	 	6,758	 	 	 	3.1	%	 	 	(2,979	)	 	 	-3.3	%
	5363598
    · Staff Incentives-	 	 	1,764	 	 	 	0.6	%	 	 	-	 	 	 	0.0	%	 	 	1,764	 	 	 	2.4	%	 	 	557	 	 	 	0.3	%	 	 	1,206	 	 	 	1.3	%
	5369000
    · Taos Grand Opening, Labor	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	Total 5363000
    · Restaurant Salary & Wages	 	 	71,712	 	 	 	23.2	%	 	 	67,179	 	 	 	28.6	%	 	 	4,534	 	 	 	6.1	%	 	 	53,064	 	 	 	24.2	%	 	 	18,649	 	 	 	20.6	%
	5363050 · Restaurant
    Taxes & Benefits	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5351
    · F&B Payroll Taxes	 	 	12,427	 	 	 	4.0	%	 	 	10,860	 	 	 	4.6	%	 	 	1,567	 	 	 	2.1	%	 	 	9,609	 	 	 	4.4	%	 	 	2,818	 	 	 	3.1	%
	5352
    · F&B Workers' Comp	 	 	793	 	 	 	0.3	%	 	 	645	 	 	 	0.3	%	 	 	148	 	 	 	0.2	%	 	 	510	 	 	 	0.2	%	 	 	283	 	 	 	0.3	%
	5353
    · F&B Employ Benefits	 	 	3,203	 	 	 	1.0	%	 	 	790	 	 	 	0.3	%	 	 	2,413	 	 	 	3.2	%	 	 	624	 	 	 	0.3	%	 	 	2,579	 	 	 	2.8	%
	5355
    · F&B PTO	 	 	-	 	 	 	0.0	%	 	 	1,511	 	 	 	0.6	%	 	 	(1,511	)	 	 	-2.0	%	 	 	1,193	 	 	 	0.5	%	 	 	(1,193	)	 	 	-1.3	%
	5356
    · F&B Employ Meals	 	 	950	 	 	 	0.3	%	 	 	1,813	 	 	 	0.8	%	 	 	(863	)	 	 	-1.2	%	 	 	1,432	 	 	 	0.7	%	 	 	(482	)	 	 	-0.5	%
	5399
    · F&B Shared Services Fringes	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	Total 5363050
    · Restaurant Taxes & Benefits	 	 	17,373	 	 	 	5.6	%	 	 	15,619	 	 	 	6.6	%	 	 	1,754	 	 	 	2.3	%	 	 	13,368	 	 	 	6.1	%	 	 	4,005	 	 	 	4.4	%
	Total 5300000 · F&B
    Salaries & Wages	 	 	89,086	 	 	 	28.8	%	 	 	82,798	 	 	 	35.2	%	 	 	6,288	 	 	 	8.4	%	 	 	66,432	 	 	 	30.3	%	 	 	22,653	 	 	 	25.0	%
	8300
    · Food & Beverage	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	8312
    · Guest Relations/issues	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	1,046	 	 	 	0.5	%	 	 	(1,046	)	 	 	-1.2	%
	8313
    · Food Operating Supplies	 	 	2,761	 	 	 	0.9	%	 	 	3,354	 	 	 	1.4	%	 	 	(593	)	 	 	-0.8	%	 	 	2,795	 	 	 	1.3	%	 	 	(34	)	 	 	0.0	%
	8314
    · Beverage Operating Supplies	 	 	2,614	 	 	 	0.8	%	 	 	1,047	 	 	 	0.4	%	 	 	1,567	 	 	 	2.1	%	 	 	873	 	 	 	0.4	%	 	 	1,742	 	 	 	1.9	%
	8320
    · Menu Testing - Preopening	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8325
    · F&B Misc Operating Supplies	 	 	192	 	 	 	0.1	%	 	 	261	 	 	 	0.1	%	 	 	(69	)	 	 	-0.1	%	 	 	218	 	 	 	0.1	%	 	 	(25	)	 	 	0.0	%
	8326
    · Equipment Repair	 	 	291	 	 	 	0.1	%	 	 	-	 	 	 	0.0	%	 	 	291	 	 	 	0.4	%	 	 	-	 	 	 	0.0	%	 	 	291	 	 	 	0.3	%
	8327
    · Equipment Rental	 	 	175	 	 	 	0.1	%	 	 	-	 	 	 	0.0	%	 	 	175	 	 	 	0.2	%	 	 	-	 	 	 	0.0	%	 	 	175	 	 	 	0.2	%
	8335
    · Uniforms	 	 	1,389	 	 	 	0.4	%	 	 	1,298	 	 	 	0.6	%	 	 	90	 	 	 	0.1	%	 	 	1,082	 	 	 	0.5	%	 	 	307	 	 	 	0.3	%
	8343
    · Linens	 	 	3,220	 	 	 	1.0	%	 	 	2,545	 	 	 	1.1	%	 	 	675	 	 	 	0.9	%	 	 	2,121	 	 	 	1.0	%	 	 	1,099	 	 	 	1.2	%
	8344
    · Linens- Banquet	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8351
    · Cleaning Supplies	 	 	1,878	 	 	 	0.6	%	 	 	1,409	 	 	 	0.6	%	 	 	469	 	 	 	0.6	%	 	 	1,174	 	 	 	0.5	%	 	 	704	 	 	 	0.8	%
	8359
    · Operating Equipment	 	 	2,692	 	 	 	0.9	%	 	 	2,036	 	 	 	0.9	%	 	 	656	 	 	 	0.9	%	 	 	1,280	 	 	 	0.6	%	 	 	1,412	 	 	 	1.6	%
	8361
    · Computer Maint. & Support	 	 	522	 	 	 	0.2	%	 	 	(300	)	 	 	-0.1	%	 	 	822	 	 	 	1.1	%	 	 	(250	)	 	 	-0.1	%	 	 	772	 	 	 	0.9	%
	8362·Glassware/Utensils/Silverware	 	 	1,477	 	 	 	0.5	%	 	 	503	 	 	 	0.2	%	 	 	974	 	 	 	1.3	%	 	 	419	 	 	 	0.2	%	 	 	1,058	 	 	 	1.2	%
	8363
    · Paper Supplies	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8364
    · Decorations	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	28	 	 	 	0.0	%	 	 	(28	)	 	 	0.0	%
	8367
    · Propane	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8369
    · Shared Expenses	 	 	7,932	 	 	 	2.6	%	 	 	-	 	 	 	0.0	%	 	 	7,932	 	 	 	10.6	%	 	 	-	 	 	 	0.0	%	 	 	7,932	 	 	 	8.7	%
	8370
    · Contract Labor	 	 	-	 	 	 	0.0	%	 	 	392	 	 	 	0.2	%	 	 	(392	)	 	 	-0.5	%	 	 	327	 	 	 	0.1	%	 	 	(327	)	 	 	-0.4	%
	8371
    · Food Promotion	 	 	5,151	 	 	 	1.7	%	 	 	1,886	 	 	 	0.8	%	 	 	3,265	 	 	 	4.4	%	 	 	114	 	 	 	0.1	%	 	 	5,037	 	 	 	5.6	%
	8374·Music/Entertainment	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8375
    · Cable TV	 	 	457	 	 	 	0.1	%	 	 	-	 	 	 	0.0	%	 	 	457	 	 	 	0.6	%	 	 	546	 	 	 	0.2	%	 	 	(89	)	 	 	-0.1	%
	8377
    · Menus	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8380
    · Postage	 	 	325	 	 	 	0.1	%	 	 	-	 	 	 	0.0	%	 	 	325	 	 	 	0.4	%	 	 	-	 	 	 	0.0	%	 	 	325	 	 	 	0.4	%
	8381
    · Dues & Subscriptions	 	 	27	 	 	 	0.0	%	 	 	32	 	 	 	0.0	%	 	 	(5	)	 	 	0.0	%	 	 	26	 	 	 	0.0	%	 	 	0	 	 	 	0.0	%
	8384
    · Printing	 	 	875	 	 	 	0.3	%	 	 	569	 	 	 	0.2	%	 	 	305	 	 	 	0.4	%	 	 	474	 	 	 	0.2	%	 	 	400	 	 	 	0.4	%
	8385
    · Telephone Cell & Radio	 	 	175	 	 	 	0.1	%	 	 	180	 	 	 	0.1	%	 	 	(5	)	 	 	0.0	%	 	 	150	 	 	 	0.1	%	 	 	25	 	 	 	0.0	%
	8388
    · Signage	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8387
    · Employee Recruitment	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8390
    · Office Supplies	 	 	84	 	 	 	0.0	%	 	 	207	 	 	 	0.1	%	 	 	(123	)	 	 	-0.2	%	 	 	172	 	 	 	0.1	%	 	 	(88	)	 	 	-0.1	%
	8391
    · Employee Relations & Training	 	 	78	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	78	 	 	 	0.1	%	 	 	-	 	 	 	0.0	%	 	 	78	 	 	 	0.1	%
	8392
    · Rent-Barrett for Dir of F&B	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8393
    · Licenses & Permits	 	 	36	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	36	 	 	 	0.0	%	 	 	(162	)	 	 	-0.1	%	 	 	198	 	 	 	0.2	%
	8395
    · Equipment	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8397
    · Business Meals	 	 	-	 	 	 	0.0	%	 	 	112	 	 	 	0.0	%	 	 	(112	)	 	 	-0.1	%	 	 	93	 	 	 	0.0	%	 	 	(93	)	 	 	-0.1	%
	8398
    · Consultants	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	Total 8300
    · Food & Beverage	 	 	32,351	 	 	 	10.4	%	 	 	15,531	 	 	 	6.6	%	 	 	16,820	 	 	 	22.5	%	 	 	12,525	 	 	 	5.7	%	 	 	20,871	 	 	 	23.0	%
	Total Expense	 	 	121,436	 	 	 	39.2	%	 	 	98,328	 	 	 	41.8	%	 	 	23,108	 	 	 	31.0	%	 	 	78,958	 	 	 	36.1	%	 	 	42,478	 	 	 	46.8	%
	Net Income	 	$	128,601	 	 	 	41.5	%	 	$	82,426	 	 	 	35.1	%	 	$	46,175	 	 	 	61.9	%	 	$	94,753	 	 	 	43.3	%	 	$	33,848	 	 	 	37.3	%

 

	 	 	Year
    to Date	 	 	Budget

    Full Year	 
	 	 	Actual	 	 	%
    to

    Revenue	 	 	Budget	 	 	%
    to

    Revenue	 	 	Variance	 	 	%
    to

    Revenue	 	 	Prior
    Year	 	 	%
    to

    Revenue	 	 	Variance	 	 	%
    to

    Revenue	 	 	Amount	 	 	%
    to

    Revenue	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Revenue	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4300 · Food & Beverage
    Revenue	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Food Revenue	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4311
    · Restaurant Breakfast	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	69,842	 	 	 	3.4	%
	4312
    · Restaurant Lunch	 	 	222,275	 	 	 	40.9	%	 	 	197,135	 	 	 	42.8	%	 	 	25,141	 	 	 	30.0	%	 	 	166,657	 	 	 	41.5	%	 	 	55,618	 	 	 	39.2	%	 	 	853,112	 	 	 	41.5	%
	4313
    · Restaurant Dinner	 	 	161,583	 	 	 	29.7	%	 	 	128,323	 	 	 	27.9	%	 	 	33,259	 	 	 	39.7	%	 	 	118,843	 	 	 	29.6	%	 	 	42,740	 	 	 	30.1	%	 	 	569,863	 	 	 	27.8	%
	Total
    Food Revenue	 	 	383,858	 	 	 	70.6	%	 	 	325,458	 	 	 	59.8	%	 	 	58,400	 	 	 	69.8	%	 	 	285,500	 	 	 	52.5	%	 	 	98,358	 	 	 	69.3	%	 	 	1,492,817	 	 	 	72.7	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Beverage Revenue	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4314
    · Restaurant Beer Sales	 	 	47,177	 	 	 	8.7	%	 	 	40,300	 	 	 	8.8	%	 	 	6,877	 	 	 	8.2	%	 	 	34,962	 	 	 	8.7	%	 	 	12,215	 	 	 	8.6	%	 	 	197,400	 	 	 	9.6	%
	4315
    · Restaurant Wine Sales	 	 	12,051	 	 	 	2.2	%	 	 	8,841	 	 	 	1.9	%	 	 	3,210	 	 	 	3.8	%	 	 	7,533	 	 	 	1.9	%	 	 	4,518	 	 	 	3.2	%	 	 	163,372	 	 	 	8.0	%
	4316
    · Restaurant Liquor Sales	 	 	100,828	 	 	 	18.5	%	 	 	85,604	 	 	 	18.6	%	 	 	15,224	 	 	 	18.2	%	 	 	73,889	 	 	 	18.4	%	 	 	26,939	 	 	 	19.0	%	 	 	199,950	 	 	 	9.7	%
	Total
    Beverage Revenue	 	 	160,056	 	 	 	29.4	%	 	 	134,745	 	 	 	29.3	%	 	 	25,311	 	 	 	30.2	%	 	 	116,385	 	 	 	29.0	%	 	 	43,671	 	 	 	30.7	%	 	 	560,722	 	 	 	27.3	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total 4310 · Restaurant
    Sales	 	 	543,914	 	 	 	100.0	%	 	 	460,203	 	 	 	100.0	%	 	 	83,711	 	 	 	100.0	%	 	 	401,884	 	 	 	100.0	%	 	 	142,030	 	 	 	100.0	%	 	 	2,053,539	 	 	 	100.0	%
	Banquet Revenue	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4324
    · Banquet Dinner	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	4331
    · Banquet Meeting Room	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	Total
    4320 · Banquet Revenue	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	Total 4300 · Food &
    Beverage Revenue	 	 	543,914	 	 	 	100.0	%	 	 	460,203	 	 	 	100.0	%	 	 	83,711	 	 	 	100.0	%	 	 	401,884	 	 	 	100.0	%	 	 	142,030	 	 	 	100.0	%	 	 	2,053,539	 	 	 	100.0	%
	Total Revenue	 	 	543,914	 	 	 	100.0	%	 	 	460,203	 	 	 	100.0	%	 	 	83,711	 	 	 	100.0	%	 	 	401,884	 	 	 	100.0	%	 	 	142,030	 	 	 	100.0	%	 	 	2,053,539	 	 	 	100.0	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Cost of Goods Sold	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	6300 · Cost of Food &
    Beverage	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	6310 · Restaurant Cost
    of Sales	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	631001
    · Meat	 	 	14,861	 	 	 	3.9	%	 	 	-	 	 	 	0.0	%	 	 	14,861	 	 	 	25.4	%	 	 	11,992	 	 	 	4.2	%	 	 	2,869	 	 	 	2.9	%	 	 	-	 	 	 	0.0	%
	631002
    · Seafood	 	 	8,544	 	 	 	2.2	%	 	 	-	 	 	 	0.0	%	 	 	8,544	 	 	 	14.6	%	 	 	6,565	 	 	 	2.3	%	 	 	1,979	 	 	 	2.0	%	 	 	-	 	 	 	0.0	%
	631003
    · Poultry	 	 	8,618	 	 	 	2.2	%	 	 	-	 	 	 	0.0	%	 	 	8,618	 	 	 	14.8	%	 	 	7,305	 	 	 	2.6	%	 	 	1,313	 	 	 	1.3	%	 	 	-	 	 	 	0.0	%
	631004
    · Produce	 	 	19,628	 	 	 	5.1	%	 	 	-	 	 	 	0.0	%	 	 	19,628	 	 	 	33.6	%	 	 	15,993	 	 	 	5.6	%	 	 	3,635	 	 	 	3.7	%	 	 	-	 	 	 	0.0	%
	631005
    · Dairy	 	 	9,712	 	 	 	2.5	%	 	 	-	 	 	 	0.0	%	 	 	9,712	 	 	 	16.6	%	 	 	9,970	 	 	 	3.5	%	 	 	(257	)	 	 	-0.3	%	 	 	-	 	 	 	0.0	%
	631006
    · Bread	 	 	10,923	 	 	 	2.8	%	 	 	-	 	 	 	0.0	%	 	 	10,923	 	 	 	18.7	%	 	 	8,172	 	 	 	2.9	%	 	 	2,751	 	 	 	2.8	%	 	 	-	 	 	 	0.0	%
	631007
    · Other Food	 	 	8,268	 	 	 	2.2	%	 	 	-	 	 	 	0.0	%	 	 	8,268	 	 	 	14.2	%	 	 	16,721	 	 	 	5.9	%	 	 	(8,453	)	 	 	-8.6	%	 	 	418,203	 	 	 	28.0	%
	631008
    · Comp Breakfast Food	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	631009
    · Cost of Goods Sold-EDR	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	631010
    · Taos - Grand Opening, Food	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	6310
    · Restaurant Cost of Sales - Other	 	 	-	 	 	 	0.0	%	 	 	78,558	 	 	 	24.1	%	 	 	(78,558	)	 	 	-134.5	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	Cost
    of Sales - Food	 	 	80,555	 	 	 	21.0	%	 	 	78,558	 	 	 	24.1	%	 	 	1,997	 	 	 	3.4	%	 	 	76,718	 	 	 	26.9	%	 	 	3,837	 	 	 	3.9	%	 	 	418,203	 	 	 	28.0	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	6311
    · Cost of Goods-Liquor	 	 	12,426	 	 	 	12.3	%	 	 	13,346	 	 	 	15.6	%	 	 	(921	)	 	 	-6.0	%	 	 	13,069	 	 	 	17.7	%	 	 	(643	)	 	 	-2.4	%	 	 	43,427	 	 	 	21.7	%
	6312
    · Cost of Goods - Wine	 	 	3,273	 	 	 	27.2	%	 	 	2,636	 	 	 	29.8	%	 	 	637	 	 	 	19.8	%	 	 	2,152	 	 	 	28.6	%	 	 	1,121	 	 	 	24.8	%	 	 	57,181	 	 	 	35.0	%
	6313
    · Cost of Goods-Beer	 	 	9,529	 	 	 	20.2	%	 	 	8,352	 	 	 	20.7	%	 	 	1,177	 	 	 	17.1	%	 	 	4,921	 	 	 	14.1	%	 	 	4,608	 	 	 	37.7	%	 	 	41,992	 	 	 	21.3	%
	Cost
    of Sales - Beverage	 	 	25,228	 	 	 	15.8	%	 	 	24,334	 	 	 	18.1	%	 	 	893	 	 	 	3.5	%	 	 	20,142	 	 	 	17.3	%	 	 	5,086	 	 	 	11.6	%	 	 	142,600	 	 	 	25.4	%
	Total
    COGS	 	 	105,782	 	 	 	19.4	%	 	 	102,892	 	 	 	22.4	%	 	 	2,890	 	 	 	3.5	%	 	 	96,860	 	 	 	24.1	%	 	 	8,923	 	 	 	6.3	%	 	 	560,803	 	 	 	27.3	%
	Gross Profit	 	 	438,132	 	 	 	80.6	%	 	 	357,311	 	 	 	77.6	%	 	 	80,821	 	 	 	96.5	%	 	 	305,025	 	 	 	75.9	%	 	 	133,107	 	 	 	93.7	%	 	 	1,492,736	 	 	 	72.7	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Expense	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5000 · Payroll &
    Benefits	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5300000 · F&B Salaries
    & Wages	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5363000 · Restaurant
    Salary & Wages	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5300000
    · F&B Salaries & Wages - Other	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	5363150
    · Restaurant Supervisor	 	 	1,309	 	 	 	0.2	%	 	 	942	 	 	 	0.2	%	 	 	367	 	 	 	0.4	%	 	 	-	 	 	 	0.0	%	 	 	1,309	 	 	 	0.9	%	 	 	17,730	 	 	 	0.9	%
	5363160
    · Kitchen Manager	 	 	637	 	 	 	0.1	%	 	 	-	 	 	 	0.0	%	 	 	637	 	 	 	0.8	%	 	 	-	 	 	 	0.0	%	 	 	637	 	 	 	0.4	%	 	 	-	 	 	 	0.0	%
	5363170
    · Restaurant Manager	 	 	22,040	 	 	 	4.1	%	 	 	24,352	 	 	 	5.3	%	 	 	(2,312	)	 	 	-2.8	%	 	 	14,402	 	 	 	3.6	%	 	 	7,639	 	 	 	5.4	%	 	 	64,212	 	 	 	3.1	%
	5363171
    · Asst Restaurant Manager	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	5363180
    · Restaurant Assistant Manager	 	 	6,712	 	 	 	1.2	%	 	 	-	 	 	 	0.0	%	 	 	6,712	 	 	 	8.0	%	 	 	6,609	 	 	 	1.6	%	 	 	103	 	 	 	0.1	%	 	 	33,456	 	 	 	1.6	%
	5363199
    · F&B Shared Services	 	 	(3,943	)	 	 	-0.7	%	 	 	-	 	 	 	0.0	%	 	 	(3,943	)	 	 	-4.7	%	 	 	844	 	 	 	0.2	%	 	 	(4,787	)	 	 	-3.4	%	 	 	37,296	 	 	 	1.8	%
	5363300
    · Server	 	 	18,570	 	 	 	3.4	%	 	 	19,294	 	 	 	4.2	%	 	 	(725	)	 	 	-0.9	%	 	 	14,099	 	 	 	3.5	%	 	 	4,471	 	 	 	3.1	%	 	 	67,161	 	 	 	3.3	%
	5363305
    · Expeditor	 	 	4,002	 	 	 	0.7	%	 	 	3,419	 	 	 	0.7	%	 	 	583	 	 	 	0.7	%	 	 	880	 	 	 	0.2	%	 	 	3,122	 	 	 	2.2	%	 	 	-	 	 	 	0.0	%
	5363310
    · Busser	 	 	2,995	 	 	 	0.6	%	 	 	2,635	 	 	 	0.6	%	 	 	360	 	 	 	0.4	%	 	 	1,938	 	 	 	0.5	%	 	 	1,056	 	 	 	0.7	%	 	 	21,546	 	 	 	1.0	%
	5363320
    · Bartender	 	 	9,120	 	 	 	1.7	%	 	 	9,062	 	 	 	2.0	%	 	 	59	 	 	 	0.1	%	 	 	6,619	 	 	 	1.6	%	 	 	2,502	 	 	 	1.8	%	 	 	36,774	 	 	 	1.8	%
	5363330·Cashier/Hostess	 	 	7,404	 	 	 	1.4	%	 	 	6,882	 	 	 	1.5	%	 	 	522	 	 	 	0.6	%	 	 	4,908	 	 	 	1.2	%	 	 	2,496	 	 	 	1.8	%	 	 	30,324	 	 	 	1.5	%
	5363400·Warewasher/Dishwasher	 	 	11,719	 	 	 	2.2	%	 	 	10,277	 	 	 	2.2	%	 	 	1,442	 	 	 	1.7	%	 	 	8,400	 	 	 	2.1	%	 	 	3,319	 	 	 	2.3	%	 	 	36,393	 	 	 	1.8	%
	5363420
    · Cook I	 	 	28,402	 	 	 	5.2	%	 	 	42,863	 	 	 	9.3	%	 	 	(14,461	)	 	 	-17.3	%	 	 	25,191	 	 	 	6.3	%	 	 	3,211	 	 	 	2.3	%	 	 	36,024	 	 	 	1.8	%
	5363430
    · Cook II	 	 	1,179	 	 	 	0.2	%	 	 	-	 	 	 	0.0	%	 	 	1,179	 	 	 	1.4	%	 	 	5,686	 	 	 	1.4	%	 	 	(4,507	)	 	 	-3.2	%	 	 	55,278	 	 	 	2.7	%
	5363440
    · Cook III	 	 	11,379	 	 	 	2.1	%	 	 	-	 	 	 	0.0	%	 	 	11,379	 	 	 	13.6	%	 	 	5,922	 	 	 	1.5	%	 	 	5,458	 	 	 	3.8	%	 	 	39,422	 	 	 	1.9	%
	5363450
    · Chef	 	 	15,839	 	 	 	2.9	%	 	 	29,079	 	 	 	6.3	%	 	 	(13,240	)	 	 	-15.8	%	 	 	8,176	 	 	 	2.0	%	 	 	7,663	 	 	 	5.4	%	 	 	-	 	 	 	0.0	%
	5363460
    · Head Chef	 	 	10,346	 	 	 	1.9	%	 	 	-	 	 	 	0.0	%	 	 	10,346	 	 	 	12.4	%	 	 	6,758	 	 	 	1.7	%	 	 	3,588	 	 	 	2.5	%	 	 	55,524	 	 	 	2.7	%
	5363598
    · Staff Incentives-	 	 	2,524	 	 	 	0.5	%	 	 	-	 	 	 	0.0	%	 	 	2,524	 	 	 	3.0	%	 	 	1,106	 	 	 	0.3	%	 	 	1,418	 	 	 	1.0	%	 	 	-	 	 	 	0.0	%
	5369000
    · Taos Grand Opening, Labor	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	Total 5363000
    · Restaurant Salary & Wages	 	 	150,235	 	 	 	27.6	%	 	 	148,806	 	 	 	32.3	%	 	 	1,429	 	 	 	1.7	%	 	 	111,537	 	 	 	27.8	%	 	 	38,697	 	 	 	27.2	%	 	 	531,140	 	 	 	25.9	%
	5363050 · Restaurant
    Taxes & Benefits	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5351
    · F&B Payroll Taxes	 	 	25,273	 	 	 	4.6	%	 	 	25,178	 	 	 	5.5	%	 	 	96	 	 	 	0.1	%	 	 	18,604	 	 	 	4.6	%	 	 	6,669	 	 	 	4.7	%	 	 	60,550	 	 	 	2.9	%
	5352
    · F&B Workers' Comp	 	 	2,379	 	 	 	0.4	%	 	 	1,151	 	 	 	0.3	%	 	 	1,228	 	 	 	1.5	%	 	 	1,865	 	 	 	0.5	%	 	 	514	 	 	 	0.4	%	 	 	7,437	 	 	 	0.4	%
	5353
    · F&B Employ Benefits	 	 	13,309	 	 	 	2.4	%	 	 	8,487	 	 	 	1.8	%	 	 	4,821	 	 	 	5.8	%	 	 	3,148	 	 	 	0.8	%	 	 	10,161	 	 	 	7.2	%	 	 	28,254	 	 	 	1.4	%
	5355
    · F&B PTO	 	 	2,023	 	 	 	0.4	%	 	 	3,701	 	 	 	0.8	%	 	 	(1,678	)	 	 	-2.0	%	 	 	2,274	 	 	 	0.6	%	 	 	(251	)	 	 	-0.2	%	 	 	14,040	 	 	 	0.7	%
	5356
    · F&B Employ Meals	 	 	2,221	 	 	 	0.4	%	 	 	3,207	 	 	 	0.7	%	 	 	(986	)	 	 	-1.2	%	 	 	2,487	 	 	 	0.6	%	 	 	(267	)	 	 	-0.2	%	 	 	34,909	 	 	 	1.7	%
	5399
    · F&B Shared Services Fringes	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	2,840	 	 	 	0.1	%
	Total 5363050
    · Restaurant Taxes & Benefits	 	 	45,204	 	 	 	8.3	%	 	 	41,724	 	 	 	9.1	%	 	 	3,481	 	 	 	4.2	%	 	 	28,378	 	 	 	7.1	%	 	 	16,826	 	 	 	11.8	%	 	 	148,030	 	 	 	7.2	%
	Total 5300000 · F&B
    Salaries & Wages	 	 	195,439	 	 	 	35.9	%	 	 	190,530	 	 	 	41.4	%	 	 	4,909	 	 	 	5.9	%	 	 	139,916	 	 	 	34.8	%	 	 	55,523	 	 	 	39.1	%	 	 	679,170	 	 	 	33.1	%
	8300
    · Food & Beverage	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	8312
    · Guest Relations/issues	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	1,216	 	 	 	0.3	%	 	 	(1,216	)	 	 	-0.9	%	 	 	-	 	 	 	0.0	%
	8313
    · Food Operating Supplies	 	 	4,539	 	 	 	0.8	%	 	 	5,141	 	 	 	1.1	%	 	 	(602	)	 	 	-0.7	%	 	 	6,120	 	 	 	1.5	%	 	 	(1,581	)	 	 	-1.1	%	 	 	14,376	 	 	 	0.7	%
	8314
    · Beverage Operating Supplies	 	 	4,857	 	 	 	0.9	%	 	 	1,950	 	 	 	0.4	%	 	 	2,907	 	 	 	3.5	%	 	 	873	 	 	 	0.2	%	 	 	3,985	 	 	 	2.8	%	 	 	4,107	 	 	 	0.2	%
	8320
    · Menu Testing - Preopening	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8325
    · F&B Misc Operating Supplies	 	 	461	 	 	 	0.1	%	 	 	350	 	 	 	0.1	%	 	 	111	 	 	 	0.1	%	 	 	218	 	 	 	0.1	%	 	 	243	 	 	 	0.2	%	 	 	-	 	 	 	0.0	%
	8326
    · Equipment Repair	 	 	291	 	 	 	0.1	%	 	 	-	 	 	 	0.0	%	 	 	291	 	 	 	0.3	%	 	 	-	 	 	 	0.0	%	 	 	291	 	 	 	0.2	%	 	 	-	 	 	 	0.0	%
	8327
    · Equipment Rental	 	 	463	 	 	 	0.1	%	 	 	139	 	 	 	0.0	%	 	 	323	 	 	 	0.4	%	 	 	45	 	 	 	0.0	%	 	 	418	 	 	 	0.3	%	 	 	-	 	 	 	0.0	%
	8335
    · Uniforms	 	 	1,972	 	 	 	0.4	%	 	 	1,759	 	 	 	0.4	%	 	 	213	 	 	 	0.3	%	 	 	1,591	 	 	 	0.4	%	 	 	382	 	 	 	0.3	%	 	 	6,776	 	 	 	0.3	%
	8343
    · Linens	 	 	7,000	 	 	 	1.3	%	 	 	5,982	 	 	 	1.3	%	 	 	1,018	 	 	 	1.2	%	 	 	4,428	 	 	 	1.1	%	 	 	2,572	 	 	 	1.8	%	 	 	16,017	 	 	 	0.8	%
	8344
    · Linens- Banquet	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8351
    · Cleaning Supplies	 	 	3,579	 	 	 	0.7	%	 	 	2,602	 	 	 	0.6	%	 	 	977	 	 	 	1.2	%	 	 	2,598	 	 	 	0.6	%	 	 	981	 	 	 	0.7	%	 	 	9,241	 	 	 	0.5	%
	8359
    · Operating Equipment	 	 	3,384	 	 	 	0.6	%	 	 	3,674	 	 	 	0.8	%	 	 	(290	)	 	 	-0.3	%	 	 	1,395	 	 	 	0.3	%	 	 	1,989	 	 	 	1.4	%	 	 	6,160	 	 	 	0.3	%
	8361
    · Computer Maint. & Support	 	 	806	 	 	 	0.1	%	 	 	142	 	 	 	0.0	%	 	 	664	 	 	 	0.8	%	 	 	250	 	 	 	0.1	%	 	 	556	 	 	 	0.4	%	 	 	8,215	 	 	 	0.4	%
	8362·Glassware/Utensils/Silverware	 	 	1,942	 	 	 	0.4	%	 	 	710	 	 	 	0.2	%	 	 	1,232	 	 	 	1.5	%	 	 	803	 	 	 	0.2	%	 	 	1,139	 	 	 	0.8	%	 	 	4,107	 	 	 	0.2	%
	8363
    · Paper Supplies	 	 	1,076	 	 	 	0.2	%	 	 	1,401	 	 	 	0.3	%	 	 	(324	)	 	 	-0.4	%	 	 	295	 	 	 	0.1	%	 	 	781	 	 	 	0.5	%	 	 	18,480	 	 	 	0.9	%
	8364
    · Decorations	 	 	90	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	90	 	 	 	0.1	%	 	 	28	 	 	 	0.0	%	 	 	62	 	 	 	0.0	%	 	 	4,744	 	 	 	0.2	%
	8367
    · Propane	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8369
    · Shared Expenses	 	 	22,056	 	 	 	4.1	%	 	 	6,192	 	 	 	1.3	%	 	 	15,864	 	 	 	19.0	%	 	 	-	 	 	 	0.0	%	 	 	22,056	 	 	 	15.5	%	 	 	-	 	 	 	0.0	%
	8370
    · Contract Labor	 	 	965	 	 	 	0.2	%	 	 	892	 	 	 	0.2	%	 	 	73	 	 	 	0.1	%	 	 	327	 	 	 	0.1	%	 	 	638	 	 	 	0.4	%	 	 	26,400	 	 	 	1.3	%
	8371
    · Food Promotion	 	 	11,107	 	 	 	2.0	%	 	 	5,998	 	 	 	1.3	%	 	 	5,109	 	 	 	6.1	%	 	 	174	 	 	 	0.0	%	 	 	10,933	 	 	 	7.7	%	 	 	-	 	 	 	0.0	%
	8374·Music/Entertainment	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	6,000	 	 	 	0.3	%
	8375
    · Cable TV	 	 	1,036	 	 	 	0.2	%	 	 	-	 	 	 	0.0	%	 	 	1,036	 	 	 	1.2	%	 	 	2,507	 	 	 	0.6	%	 	 	(1,471	)	 	 	-1.0	%	 	 	-	 	 	 	0.0	%
	8377
    · Menus	 	 	839	 	 	 	0.2	%	 	 	-	 	 	 	0.0	%	 	 	839	 	 	 	1.0	%	 	 	-	 	 	 	0.0	%	 	 	839	 	 	 	0.6	%	 	 	1,849	 	 	 	0.1	%
	8380
    · Postage	 	 	384	 	 	 	0.1	%	 	 	59	 	 	 	0.0	%	 	 	325	 	 	 	0.4	%	 	 	-	 	 	 	0.0	%	 	 	384	 	 	 	0.3	%	 	 	-	 	 	 	0.0	%
	8381
    · Dues & Subscriptions	 	 	83	 	 	 	0.0	%	 	 	355	 	 	 	0.1	%	 	 	(271	)	 	 	-0.3	%	 	 	289	 	 	 	0.1	%	 	 	(205	)	 	 	-0.1	%	 	 	150	 	 	 	0.0	%
	8384
    · Printing	 	 	1,080	 	 	 	0.2	%	 	 	1,069	 	 	 	0.2	%	 	 	11	 	 	 	0.0	%	 	 	704	 	 	 	0.2	%	 	 	376	 	 	 	0.3	%	 	 	-	 	 	 	0.0	%
	8385
    · Telephone Cell & Radio	 	 	375	 	 	 	0.1	%	 	 	435	 	 	 	0.1	%	 	 	(60	)	 	 	-0.1	%	 	 	450	 	 	 	0.1	%	 	 	(75	)	 	 	-0.1	%	 	 	840	 	 	 	0.0	%
	8388
    · Signage	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8387
    · Employee Recruitment	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8390
    · Office Supplies	 	 	421	 	 	 	0.1	%	 	 	475	 	 	 	0.1	%	 	 	(54	)	 	 	-0.1	%	 	 	571	 	 	 	0.1	%	 	 	(151	)	 	 	-0.1	%	 	 	-	 	 	 	0.0	%
	8391
    · Employee Relations & Training	 	 	125	 	 	 	0.0	%	 	 	47	 	 	 	0.0	%	 	 	78	 	 	 	0.1	%	 	 	-	 	 	 	0.0	%	 	 	125	 	 	 	0.1	%	 	 	295	 	 	 	0.0	%
	8392
    · Rent-Barrett for Dir of F&B	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8393
    · Licenses & Permits	 	 	(41	)	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	(41	)	 	 	0.0	%	 	 	(396	)	 	 	-0.1	%	 	 	355	 	 	 	0.2	%	 	 	-	 	 	 	0.0	%
	8395
    · Equipment	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8397
    · Business Meals	 	 	-	 	 	 	0.0	%	 	 	355	 	 	 	0.1	%	 	 	(355	)	 	 	-0.4	%	 	 	296	 	 	 	0.1	%	 	 	(296	)	 	 	-0.2	%	 	 	100	 	 	 	0.0	%
	8398
    · Consultants	 	 	900	 	 	 	0.2	%	 	 	-	 	 	 	0.0	%	 	 	900	 	 	 	1.1	%	 	 	-	 	 	 	0.0	%	 	 	900	 	 	 	0.6	%	 	 	-	 	 	 	0.0	%
	Total 8300
    · Food & Beverage	 	 	69,791	 	 	 	12.8	%	 	 	39,727	 	 	 	8.6	%	 	 	30,063	 	 	 	35.9	%	 	 	24,780	 	 	 	6.2	%	 	 	46,226	 	 	 	32.5	%	 	 	127,857	 	 	 	6.2	%
	Total Expense	 	 	265,230	 	 	 	48.8	%	 	 	230,257	 	 	 	50.0	%	 	 	34,973	 	 	 	41.8	%	 	 	164,696	 	 	 	41.0	%	 	 	100,534	 	 	 	70.8	%	 	 	807,027	 	 	 	39.3	%
	Net Income	 	$	172,902	 	 	 	31.8	%	 	$	127,054	 	 	 	27.6	%	 	 	45,848	 	 	 	54.8	%	 	$	140,328	 	 	 	34.9	%	 	$	32,574	 	 	 	22.9	%	 	$	685,709	 	 	 	33.4	%

  

 

	 	Page 7 of 21	109.2. Ex 18(a)- 2nd Part - Orchards Inn March 13 Issue / F&B - AvB

 

 

 

    	 	 	 

    	 

      

	Orchards Inn & Restaurant, LLC.
	Food and Beverage Department
	January through March 2013

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	TOTAL	 
	 	 	Jan 13	 	 	% of Income	 	 	Feb 13	 	 	% of Income	 	 	Mar 13	 	 	% of Income	 	 	Jan - Mar 13	 	 	% of Income	 
	Ordinary Income/Expense	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Income	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4300 · Food & Beverage Revenue	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4310 · Restaurant Sales	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4312 · Restaurant Lunch	 	 	39,488.18	 	 	 	41.48	%	 	 	55,716.46	 	 	 	40.06	%	 	 	127,070.79	 	 	 	41.04	%	 	 	222,275.43	 	 	 	40.87	%
	4313 · Restaurant Dinner	 	 	27,015.50	 	 	 	28.38	%	 	 	37,804.67	 	 	 	27.18	%	 	 	96,762.49	 	 	 	31.25	%	 	 	161,582.66	 	 	 	29.71	%
	4314 · Restaurant Beer Sales	 	 	8,601.00	 	 	 	9.03	%	 	 	12,411.00	 	 	 	8.92	%	 	 	26,165.00	 	 	 	8.45	%	 	 	47,177.00	 	 	 	8.67	%
	4315 · Restaurant Wine Sales	 	 	1,935.00	 	 	 	2.03	%	 	 	3,634.00	 	 	 	2.61	%	 	 	6,482.00	 	 	 	2.09	%	 	 	12,051.00	 	 	 	2.22	%
	4316 · Restaurant Liquor Sales	 	 	18,163.61	 	 	 	19.08	%	 	 	29,504.00	 	 	 	21.22	%	 	 	53,160.51	 	 	 	17.17	%	 	 	100,828.12	 	 	 	18.54	%
	Total 4310 · Restaurant Sales	 	 	95,203.29	 	 	 	100.0	%	 	 	139,070.13	 	 	 	100.0	%	 	 	309,640.79	 	 	 	100.0	%	 	 	543,914.21	 	 	 	100.0	%
	Total 4300 · Food & Beverage Revenue	 	 	95,203.29	 	 	 	100.0	%	 	 	139,070.13	 	 	 	100.0	%	 	 	309,640.79	 	 	 	100.0	%	 	 	543,914.21	 	 	 	100.0	%
	Total Income	 	 	95,203.29	 	 	 	100.0	%	 	 	139,070.13	 	 	 	100.0	%	 	 	309,640.79	 	 	 	100.0	%	 	 	543,914.21	 	 	 	100.0	%
	Revenue Summary	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Food	 	 	66,503.68	 	 	 	69.85	%	 	 	93,521.13	 	 	 	67.25	%	 	 	223,833.28	 	 	 	72.29	%	 	 	383,858.09	 	 	 	70.57	%
	Beverage	 	 	 	 	 	 	0.0	%	 	 	 	 	 	 	0.0	%	 	 	 	 	 	 	0.0	%	 	 	 	 	 	 	0.0	%
	Beer	 	 	8,601.00	 	 	 	9.03	%	 	 	12,411.00	 	 	 	8.92	%	 	 	26,165.00	 	 	 	8.45	%	 	 	47,177.00	 	 	 	8.67	%
	Wine	 	 	1,935.00	 	 	 	2.03	%	 	 	3,634.00	 	 	 	2.61	%	 	 	6,482.00	 	 	 	2.09	%	 	 	12,051.00	 	 	 	2.22	%
	Liquor	 	 	18,163.61	 	 	 	19.08	%	 	 	29,504.00	 	 	 	21.22	%	 	 	53,160.51	 	 	 	17.17	%	 	 	100,828.12	 	 	 	18.54	%
	Total Beverage	 	 	28,699.61	 	 	 	30.15	%	 	 	45,549.00	 	 	 	32.75	%	 	 	85,807.51	 	 	 	27.71	%	 	 	160,056.12	 	 	 	29.43	%
	 	 	 	 	 	 	 	0.0	%	 	 	 	 	 	 	0.0	%	 	 	 	 	 	 	0.0	%	 	 	 	 	 	 	0.0	%
	Total Food & Beverage Revenue	 	 	95,203.29	 	 	 	100.0	%	 	 	139,070.13	 	 	 	100.0	%	 	 	309,640.79	 	 	 	100.0	%	 	 	543,914.21	 	 	 	100.0	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Cost of Goods Sold	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	6300 · Cost of Food & Beverage	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	6310 · Restaurant Cost of Sales	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	631001 · Meat	 	 	2,913.69	 	 	 	4.38	%	 	 	3,787.47	 	 	 	4.05	%	 	 	8,159.65	 	 	 	3.65	%	 	 	14,860.81	 	 	 	3.87	%
	631002 · Seafood	 	 	1,603.19	 	 	 	2.41	%	 	 	1,943.07	 	 	 	2.08	%	 	 	4,998.11	 	 	 	2.23	%	 	 	8,544.37	 	 	 	2.23	%
	631003 · Poultry	 	 	1,643.69	 	 	 	2.47	%	 	 	2,333.40	 	 	 	2.5	%	 	 	4,640.76	 	 	 	2.07	%	 	 	8,617.85	 	 	 	2.25	%
	631004 · Produce	 	 	3,827.19	 	 	 	5.75	%	 	 	4,471.84	 	 	 	4.78	%	 	 	11,329.08	 	 	 	5.06	%	 	 	19,628.11	 	 	 	5.11	%
	631005 · Dairy	 	 	1,751.99	 	 	 	2.63	%	 	 	2,898.19	 	 	 	3.1	%	 	 	5,061.98	 	 	 	2.26	%	 	 	9,712.16	 	 	 	2.53	%
	631006 · Bread	 	 	1,637.01	 	 	 	2.46	%	 	 	2,449.49	 	 	 	2.62	%	 	 	6,836.80	 	 	 	3.05	%	 	 	10,923.30	 	 	 	2.85	%
	631007 · Other Food	 	 	442.65	 	 	 	0.67	%	 	 	2,527.60	 	 	 	2.7	%	 	 	5,298.07	 	 	 	2.37	%	 	 	8,268.32	 	 	 	2.15	%
	Total 6310 · Restaurant Cost of Sales	 	 	13,819.41	 	 	 	20.78	%	 	 	20,411.06	 	 	 	21.83	%	 	 	46,324.45	 	 	 	20.7	%	 	 	80,554.92	 	 	 	20.99	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	6311 · Cost of Goods-Liquor	 	 	2,555.82	 	 	 	14.07	%	 	 	3,633.45	 	 	 	12.32	%	 	 	6,236.30	 	 	 	11.73	%	 	 	12,425.57	 	 	 	12.32	%
	6312 · Cost of Goods - Wine	 	 	563.92	 	 	 	29.14	%	 	 	737.13	 	 	 	20.28	%	 	 	1,971.87	 	 	 	30.42	%	 	 	3,272.92	 	 	 	27.16	%
	6313 · Cost of Goods-Beer	 	 	2,012.32	 	 	 	23.4	%	 	 	2,445.71	 	 	 	19.71	%	 	 	5,071.02	 	 	 	19.38	%	 	 	9,529.05	 	 	 	20.2	%
	 	 	 	5,132.06	 	 	 	17.88	%	 	 	6,816.29	 	 	 	14.96	%	 	 	13,279.19	 	 	 	15.48	%	 	 	25,227.54	 	 	 	15.76	%
	Total 6300 · Cost of Food & Beverage	 	 	18,951.47	 	 	 	19.91	%	 	 	27,227.35	 	 	 	19.58	%	 	 	59,603.64	 	 	 	19.25	%	 	 	105,782.46	 	 	 	19.45	%
	Total COGS	 	 	18,951.47	 	 	 	19.91	%	 	 	27,227.35	 	 	 	19.58	%	 	 	59,603.64	 	 	 	19.25	%	 	 	105,782.46	 	 	 	19.45	%
	Gross Profit	 	 	76,251.82	 	 	 	80.09	%	 	 	111,842.78	 	 	 	80.42	%	 	 	250,037.15	 	 	 	80.75	%	 	 	438,131.75	 	 	 	80.55	%
	Expense	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5000 · Payroll & Benefits	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5300000 · F&B Salaries & Wages	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5363000 · Restaurant Salary & Wages	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5363150 · Restaurant Supervisor	 	 	942.07	 	 	 	0.99	%	 	 	0.00	 	 	 	0.0	%	 	 	366.70	 	 	 	0.12	%	 	 	1,308.77	 	 	 	0.24	%
	5363160 · Kitchen Manager	 	 	393.50	 	 	 	0.41	%	 	 	0.00	 	 	 	0.0	%	 	 	243.75	 	 	 	0.08	%	 	 	637.25	 	 	 	0.12	%
	5363170 · Restaurant Manager	 	 	6,578.65	 	 	 	6.91	%	 	 	8,499.92	 	 	 	6.11	%	 	 	6,961.63	 	 	 	2.25	%	 	 	22,040.20	 	 	 	4.05	%
	5363180 · Restaurant Assistant Manager	 	 	0.00	 	 	 	0.0	%	 	 	1,027.46	 	 	 	0.74	%	 	 	5,684.18	 	 	 	1.84	%	 	 	6,711.64	 	 	 	1.23	%
	5363199 · F&B Shared Services	 	 	-661.80	 	 	 	-0.7	%	 	 	-1,495.24	 	 	 	-1.08	%	 	 	-1,785.85	 	 	 	-0.58	%	 	 	-3,942.89	 	 	 	-0.73	%
	5363300 · Server	 	 	3,742.90	 	 	 	3.93	%	 	 	5,518.55	 	 	 	3.97	%	 	 	9,308.07	 	 	 	3.01	%	 	 	18,569.52	 	 	 	3.41	%
	5363305 · Expeditor	 	 	171.78	 	 	 	0.18	%	 	 	1,113.45	 	 	 	0.8	%	 	 	2,716.82	 	 	 	0.88	%	 	 	4,002.05	 	 	 	0.74	%
	5363310 · Busser	 	 	181.00	 	 	 	0.19	%	 	 	813.45	 	 	 	0.59	%	 	 	2,000.25	 	 	 	0.65	%	 	 	2,994.70	 	 	 	0.55	%
	5363320 · Bartender	 	 	2,144.90	 	 	 	2.25	%	 	 	3,151.80	 	 	 	2.27	%	 	 	3,823.76	 	 	 	1.24	%	 	 	9,120.46	 	 	 	1.68	%
	5363330·Cashier/Hostess	 	 	510.00	 	 	 	0.54	%	 	 	2,047.50	 	 	 	1.47	%	 	 	4,846.50	 	 	 	1.57	%	 	 	7,404.00	 	 	 	1.36	%
	5363400·Warewasher/Dishwasher	 	 	1,037.50	 	 	 	1.09	%	 	 	3,643.75	 	 	 	2.62	%	 	 	7,037.56	 	 	 	2.27	%	 	 	11,718.81	 	 	 	2.16	%
	5363420 · Cook I	 	 	6,543.76	 	 	 	6.87	%	 	 	7,408.26	 	 	 	5.33	%	 	 	14,450.28	 	 	 	4.67	%	 	 	28,402.30	 	 	 	5.22	%
	5363430 · Cook II	 	 	558.00	 	 	 	0.59	%	 	 	621.00	 	 	 	0.45	%	 	 	0.00	 	 	 	0.0	%	 	 	1,179.00	 	 	 	0.22	%
	5363440 · Cook III	 	 	1,851.00	 	 	 	1.94	%	 	 	3,770.32	 	 	 	2.71	%	 	 	5,758.11	 	 	 	1.86	%	 	 	11,379.43	 	 	 	2.09	%
	5363450 · Chef	 	 	4,642.37	 	 	 	4.88	%	 	 	6,438.69	 	 	 	4.63	%	 	 	4,758.28	 	 	 	1.54	%	 	 	15,839.34	 	 	 	2.91	%
	5363460 · Head Chef	 	 	4,609.51	 	 	 	4.84	%	 	 	1,957.62	 	 	 	1.41	%	 	 	3,778.95	 	 	 	1.22	%	 	 	10,346.08	 	 	 	1.9	%
	5363598 · Staff Incentives-	 	 	389.50	 	 	 	0.41	%	 	 	371.01	 	 	 	0.27	%	 	 	1,763.50	 	 	 	0.57	%	 	 	2,524.01	 	 	 	0.46	%
	Total 5363000 · Restaurant Salary & Wages	 	 	33,634.64	 	 	 	35.33	%	 	 	44,887.54	 	 	 	32.28	%	 	 	71,712.49	 	 	 	23.16	%	 	 	150,234.67	 	 	 	27.62	%
	5363050 · Restaurant Taxes & Benefits	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5351 · F&B Payroll Taxes	 	 	6,178.40	 	 	 	6.49	%	 	 	6,668.32	 	 	 	4.8	%	 	 	12,426.71	 	 	 	4.01	%	 	 	25,273.43	 	 	 	4.65	%
	5352 · F&B Workers' Comp	 	 	792.96	 	 	 	0.83	%	 	 	792.96	 	 	 	0.57	%	 	 	792.96	 	 	 	0.26	%	 	 	2,378.88	 	 	 	0.44	%
	5353 · F&B Employ Benefits	 	 	5,268.49	 	 	 	5.53	%	 	 	4,836.68	 	 	 	3.48	%	 	 	3,203.34	 	 	 	1.04	%	 	 	13,308.51	 	 	 	2.45	%
	5355 · F&B PTO	 	 	2,022.66	 	 	 	2.13	%	 	 	0.00	 	 	 	0.0	%	 	 	0.00	 	 	 	0.0	%	 	 	2,022.66	 	 	 	0.37	%
	5356 · F&B Employ Meals	 	 	684.04	 	 	 	0.72	%	 	 	586.85	 	 	 	0.42	%	 	 	950.06	 	 	 	0.31	%	 	 	2,220.95	 	 	 	0.41	%
	Total 5363050 · Restaurant Taxes & Benefits	 	 	14,946.55	 	 	 	15.7	%	 	 	12,884.81	 	 	 	9.27	%	 	 	17,373.07	 	 	 	5.61	%	 	 	45,204.43	 	 	 	8.31	%
	Total 5300000 · F&B Salaries & Wages	 	 	48,581.19	 	 	 	51.03	%	 	 	57,772.35	 	 	 	41.54	%	 	 	89,085.56	 	 	 	28.77	%	 	 	195,439.10	 	 	 	35.93	%
	Total 5000 · Payroll & Benefits	 	 	48,581.19	 	 	 	51.03	%	 	 	57,772.35	 	 	 	41.54	%	 	 	89,085.56	 	 	 	28.77	%	 	 	195,439.10	 	 	 	35.93	%
	8300 · Food & Beverage	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	8313 · Food Operating Supplies	 	 	911.86	 	 	 	0.96	%	 	 	865.76	 	 	 	0.62	%	 	 	2,760.92	 	 	 	0.89	%	 	 	4,538.54	 	 	 	0.83	%
	8314 · Beverage Operating Supplies	 	 	903.30	 	 	 	0.95	%	 	 	1,339.61	 	 	 	0.96	%	 	 	2,614.34	 	 	 	0.84	%	 	 	4,857.25	 	 	 	0.89	%
	8325 · F&B Misc Operating Supplies	 	 	89.08	 	 	 	0.09	%	 	 	179.32	 	 	 	0.13	%	 	 	192.47	 	 	 	0.06	%	 	 	460.87	 	 	 	0.09	%
	8326 · Equipment Repair	 	 	0.00	 	 	 	0.0	%	 	 	0.00	 	 	 	0.0	%	 	 	291.45	 	 	 	0.09	%	 	 	291.45	 	 	 	0.05	%
	8327 · Equipment Rental	 	 	113.06	 	 	 	0.12	%	 	 	174.82	 	 	 	0.13	%	 	 	174.82	 	 	 	0.06	%	 	 	462.70	 	 	 	0.09	%
	8335 · Uniforms	 	 	229.17	 	 	 	0.24	%	 	 	354.09	 	 	 	0.26	%	 	 	1,388.89	 	 	 	0.45	%	 	 	1,972.15	 	 	 	0.36	%
	8343 · Linens	 	 	2,060.60	 	 	 	2.16	%	 	 	1,719.56	 	 	 	1.24	%	 	 	3,219.94	 	 	 	1.04	%	 	 	7,000.10	 	 	 	1.29	%
	8351 · Cleaning Supplies	 	 	943.28	 	 	 	0.99	%	 	 	757.77	 	 	 	0.55	%	 	 	1,877.89	 	 	 	0.61	%	 	 	3,578.94	 	 	 	0.66	%
	8359 · Operating Equipment	 	 	0.00	 	 	 	0.0	%	 	 	691.69	 	 	 	0.5	%	 	 	2,692.12	 	 	 	0.87	%	 	 	3,383.81	 	 	 	0.62	%
	8361 · Computer Maint. & Support	 	 	142.00	 	 	 	0.15	%	 	 	142.00	 	 	 	0.1	%	 	 	522.00	 	 	 	0.17	%	 	 	806.00	 	 	 	0.15	%
	8362·Glassware/Utensils/Silverware	 	 	78.60	 	 	 	0.08	%	 	 	386.53	 	 	 	0.28	%	 	 	1,476.86	 	 	 	0.48	%	 	 	1,941.99	 	 	 	0.36	%
	8363 · Paper Supplies	 	 	1,046.08	 	 	 	1.1	%	 	 	30.17	 	 	 	0.02	%	 	 	0.00	 	 	 	0.0	%	 	 	1,076.25	 	 	 	0.2	%
	8364 · Decorations	 	 	0.00	 	 	 	0.0	%	 	 	90.26	 	 	 	0.07	%	 	 	0.00	 	 	 	0.0	%	 	 	90.26	 	 	 	0.02	%
	8369 · Shared Expenses	 	 	6,192.00	 	 	 	6.5	%	 	 	7,932.00	 	 	 	5.7	%	 	 	7,932.00	 	 	 	2.56	%	 	 	22,056.00	 	 	 	4.06	%
	8370 · Contract Labor	 	 	500.00	 	 	 	0.53	%	 	 	465.00	 	 	 	0.33	%	 	 	0.00	 	 	 	0.0	%	 	 	965.00	 	 	 	0.18	%
	8371 · Food Promotion	 	 	3,090.87	 	 	 	3.25	%	 	 	2,865.53	 	 	 	2.06	%	 	 	5,150.54	 	 	 	1.66	%	 	 	11,106.94	 	 	 	2.04	%
	8375 · Cable TV	 	 	927.97	 	 	 	0.98	%	 	 	-349.03	 	 	 	-0.25	%	 	 	456.94	 	 	 	0.15	%	 	 	1,035.88	 	 	 	0.19	%
	8377 · Menus	 	 	0.00	 	 	 	0.0	%	 	 	839.21	 	 	 	0.6	%	 	 	0.00	 	 	 	0.0	%	 	 	839.21	 	 	 	0.15	%
	8380 · Postage	 	 	59.43	 	 	 	0.06	%	 	 	0.00	 	 	 	0.0	%	 	 	325.06	 	 	 	0.11	%	 	 	384.49	 	 	 	0.07	%
	8381 · Dues & Subscriptions	 	 	26.72	 	 	 	0.03	%	 	 	29.70	 	 	 	0.02	%	 	 	26.73	 	 	 	0.01	%	 	 	83.15	 	 	 	0.02	%
	8384 · Printing	 	 	0.00	 	 	 	0.0	%	 	 	205.44	 	 	 	0.15	%	 	 	874.53	 	 	 	0.28	%	 	 	1,079.97	 	 	 	0.2	%
	8385 · Telephone Cell & Radio	 	 	75.00	 	 	 	0.08	%	 	 	125.00	 	 	 	0.09	%	 	 	175.00	 	 	 	0.06	%	 	 	375.00	 	 	 	0.07	%
	8390 · Office Supplies	 	 	267.82	 	 	 	0.28	%	 	 	68.52	 	 	 	0.05	%	 	 	84.35	 	 	 	0.03	%	 	 	420.69	 	 	 	0.08	%
	8391 · Employee Relations & Training	 	 	47.35	 	 	 	0.05	%	 	 	0.00	 	 	 	0.0	%	 	 	77.77	 	 	 	0.03	%	 	 	125.12	 	 	 	0.02	%
	8393 · Licenses & Permits	 	 	-59.00	 	 	 	-0.06	%	 	 	-18.00	 	 	 	-0.01	%	 	 	36.00	 	 	 	0.01	%	 	 	-41.00	 	 	 	-0.01	%
	8398 · Consultants	 	 	0.00	 	 	 	0.0	%	 	 	900.00	 	 	 	0.65	%	 	 	0.00	 	 	 	0.0	%	 	 	900.00	 	 	 	0.17	%
	Total 8300 · Food & Beverage	 	 	17,645.19	 	 	 	18.53	%	 	 	19,794.95	 	 	 	14.23	%	 	 	32,350.62	 	 	 	10.45	%	 	 	69,790.76	 	 	 	12.83	%
	Total Expense	 	 	66,226.38	 	 	 	69.56	%	 	 	77,567.30	 	 	 	55.78	%	 	 	121,436.18	 	 	 	39.22	%	 	 	265,229.86	 	 	 	48.76	%
	Net Ordinary Income	 	 	10,025.44	 	 	 	10.53	%	 	 	34,275.48	 	 	 	24.65	%	 	 	128,600.97	 	 	 	41.53	%	 	 	172,901.89	 	 	 	31.79	%
	Net Income	 	 	10,025.44	 	 	 	10.53	%	 	 	34,275.48	 	 	 	24.65	%	 	 	128,600.97	 	 	 	41.53	%	 	 	172,901.89	 	 	 	31.79	%

  

 

	 	Page 8 of 21	109.2. Ex 18(a)- 2nd Part - Orchards Inn March 13 IssueF&B

 

 

 

    	 	 	 

    	 

     

Orchards Inn and Restaurant

Miscellaneous Department

Actual vs. Budget and Prior Year

March 2013

 

	 	 	 	 
	 	 	Current Month	 
	 	 	Actual	 	 	% to

        Revenue
	 	 	Budget	 	 	% to

        Revenue
	 	 	Variance	 	 	% to

        Revenue
	 	 	Prior

        Year
	 	 	% to

        Revenue
	 	 	Variance	 	 	% to

        Revenue
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Revenue	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4400 · Telephone Revenue	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4401 ·
    Local Phone Charges	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	4402 · Long Distance
    Charges	 	 	52	 	 	 	6.2	%	 	 	-	 	 	 	0.0	%	 	 	52	 	 	 	70.9	%	 	 	-	 	 	 	0.0	%	 	 	52	 	 	 	54.4	%
	4403
    · Fax Charges	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	Total 4400 · Telephone Revenue	 	 	52	 	 	 	6.2	%	 	 	-	 	 	 	0.0	%	 	 	52	 	 	 	70.9	%	 	 	-	 	 	 	0.0	%	 	 	52	 	 	 	54.4	%
	4500 · Miscellaneous Revenue	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4501 · Laundry Charges	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	4502 · UPS/Postage Charges	 	 	26	 	 	 	3.1	%	 	 	-	 	 	 	0.0	%	 	 	26	 	 	 	35.0	%	 	 	-	 	 	 	0.0	%	 	 	26	 	 	 	26.9	%
	4503 · Ticket Sales
    Tour	 	 	95	 	 	 	11.3	%	 	 	-	 	 	 	0.0	%	 	 	95	 	 	 	129.3	%	 	 	60	 	 	 	8.0	%	 	 	35	 	 	 	36.5	%
	4506 · Commissions
    Other	 	 	287	 	 	 	34.1	%	 	 	-	 	 	 	0.0	%	 	 	287	 	 	 	390.7	%	 	 	126	 	 	 	16.8	%	 	 	162	 	 	 	168.5	%
	4510 · Pet Fees	 	 	520	 	 	 	61.8	%	 	 	644	 	 	 	83.9	%	 	 	(124	)	 	 	-169.2	%	 	 	440	 	 	 	59.0	%	 	 	80	 	 	 	83.5	%
	4511 · Package Charges	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	4515 · Baggage Fees	 	 	(235	)	 	 	-27.9	%	 	 	103	 	 	 	13.4	%	 	 	(338	)	 	 	-460.1	%	 	 	100	 	 	 	13.4	%	 	 	(335	)	 	 	-349.5	%
	4520 · Other Miscellaneous	 	 	97	 	 	 	11.5	%	 	 	21	 	 	 	2.7	%	 	 	76	 	 	 	103.3	%	 	 	20	 	 	 	2.7	%	 	 	77	 	 	 	79.8	%
	4525 · Transient No
    show	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	4590
    · Management Fee	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	Total 4500 · Miscellaneous
    Revenue	 	 	789	 	 	 	93.8	%	 	 	768	 	 	 	100.0	%	 	 	21	 	 	 	29.1	%	 	 	746	 	 	 	100.0	%	 	 	44	 	 	 	45.6	%
	Total Revenue	 	 	841	 	 	 	100.0	%	 	 	768	 	 	 	100.0	%	 	 	73	 	 	 	100.0	%	 	 	746	 	 	 	100.0	%	 	 	96	 	 	 	100.0	%
	Cost of Goods Sold	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	6400 · Cost of Telephone	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	6401 · Long Distance	 	 	27	 	 	 	3.2	%	 	 	497	 	 	 	64.7	%	 	 	(470	)	 	 	-640.0	%	 	 	482	 	 	 	64.7	%	 	 	(456	)	 	 	-475.6	%
	6402
    · Local Phone Calls	 	 	351	 	 	 	41.7	%	 	 	127	 	 	 	16.5	%	 	 	224	 	 	 	304.4	%	 	 	123	 	 	 	16.5	%	 	 	227	 	 	 	237.2	%
	Total 6400 · Cost of Telephone	 	 	377	 	 	 	44.9	%	 	 	624	 	 	 	81.3	%	 	 	(247	)	 	 	-335.6	%	 	 	606	 	 	 	81.3	%	 	 	(228	)	 	 	-238.3	%
	6500 · Cost of Other Revenue	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	6506 · Cost of guest
    Valet	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	6520
    · Cost of Misc. Revenue	 	 	40	 	 	 	4.8	%	 	 	36	 	 	 	4.7	%	 	 	4	 	 	 	5.4	%	 	 	35	 	 	 	4.7	%	 	 	5	 	 	 	5.2	%
	Total 6500 · Cost
    of Other Revenue	 	 	40	 	 	 	4.8	%	 	 	36	 	 	 	4.7	%	 	 	4	 	 	 	5.4	%	 	 	35	 	 	 	4.7	%	 	 	5	 	 	 	5.2	%
	Total COGS	 	 	417	 	 	 	49.6	%	 	 	660	 	 	 	85.9	%	 	 	(243	)	 	 	-330.3	%	 	 	641	 	 	 	85.9	%	 	 	(223	)	 	 	-233.1	%
	Gross Profit	 	 	424	 	 	 	50.4	%	 	 	108	 	 	 	14.1	%	 	 	316	 	 	 	430.3	%	 	 	105	 	 	 	14.1	%	 	 	319	 	 	 	333.1	%
	Net Income	 	$	424	 	 	 	50.4	%	 	$	108	 	 	 	14.1	%	 	$	316	 	 	 	430.3	%	 	$	105	 	 	 	14.1	%	 	$	319	 	 	 	333.1	%

 

	 	 	 	 	 	Budget	 
	 	 	Year to Date	 	 	Full Year	 
	 	 	Actual	 	 	% to

        Revenue
	 	 	Budget	 	 	% to

        Revenue
	 	 	Variance	 	 	% to

        Revenue
	 	 	Prior

        Year
	 	 	% to

        Revenue
	 	 	Variance	 	 	% to

        Revenue
	 	 	Amount	 	 	% to

        Revenue
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Revenue	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4400 · Telephone Revenue	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4401 ·
    Local Phone Charges	 	 	-	 	 	 	0.0	%	 	 	404	 	 	 	10.6	%	 	 	(404	)	 	 	101.5	%	 	 	426	 	 	 	15.8	%	 	 	(426	)	 	 	-60.8	%	 	 	80	 	 	 	0.5	%
	4402 · Long Distance
    Charges	 	 	52	 	 	 	1.5	%	 	 	-	 	 	 	0.0	%	 	 	52	 	 	 	-13.1	%	 	 	46	 	 	 	1.7	%	 	 	6	 	 	 	0.9	%	 	 	1,031	 	 	 	6.1	%
	4403
    · Fax Charges	 	 	-	 	 	 	0.0	%	 	 	10	 	 	 	0.3	%	 	 	(10	)	 	 	2.6	%	 	 	10	 	 	 	0.4	%	 	 	(10	)	 	 	-1.4	%	 	 	-	 	 	 	0.0	%
	Total 4400 · Telephone Revenue	 	 	52	 	 	 	1.5	%	 	 	414	 	 	 	10.9	%	 	 	(362	)	 	 	91.0	%	 	 	482	 	 	 	17.8	%	 	 	(430	)	 	 	-61.3	%	 	 	1,111	 	 	 	6.5	%
	4500 · Miscellaneous Revenue	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4501 · Laundry Charges	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	22	 	 	 	0.8	%	 	 	(22	)	 	 	-3.1	%	 	 	31	 	 	 	0.2	%
	4502 · UPS/Postage Charges	 	 	145	 	 	 	4.3	%	 	 	-	 	 	 	0.0	%	 	 	145	 	 	 	-36.4	%	 	 	-	 	 	 	0.0	%	 	 	145	 	 	 	20.6	%	 	 	-	 	 	 	0.0	%
	4503 · Ticket Sales
    Tour	 	 	145	 	 	 	4.3	%	 	 	-	 	 	 	0.0	%	 	 	145	 	 	 	-36.5	%	 	 	125	 	 	 	4.6	%	 	 	20	 	 	 	2.9	%	 	 	-	 	 	 	0.0	%
	4506 · Commissions
    Other	 	 	1,221	 	 	 	35.9	%	 	 	-	 	 	 	0.0	%	 	 	1,221	 	 	 	-307.1	%	 	 	197	 	 	 	7.3	%	 	 	1,024	 	 	 	146.0	%	 	 	-	 	 	 	0.0	%
	4510 · Pet Fees	 	 	1,520	 	 	 	44.7	%	 	 	2,784	 	 	 	73.3	%	 	 	(1,264	)	 	 	317.9	%	 	 	1,540	 	 	 	57.0	%	 	 	(20	)	 	 	-2.9	%	 	 	-	 	 	 	0.0	%
	4511 · Package Charges	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	4,208	 	 	 	24.8	%
	4515 · Baggage Fees	 	 	(235	)	 	 	-6.9	%	 	 	103	 	 	 	2.7	%	 	 	(338	)	 	 	85.0	%	 	 	100	 	 	 	3.7	%	 	 	(335	)	 	 	-47.8	%	 	 	685	 	 	 	4.0	%
	4520 · Other Miscellaneous	 	 	554	 	 	 	16.3	%	 	 	499	 	 	 	13.1	%	 	 	55	 	 	 	-13.9	%	 	 	235	 	 	 	8.7	%	 	 	319	 	 	 	45.5	%	 	 	10,932	 	 	 	64.4	%
	4525 · Transient No
    show	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	4590
    · Management Fee	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	Total 4500 · Miscellaneous
    Revenue	 	 	3,350	 	 	 	98.5	%	 	 	3,386	 	 	 	89.1	%	 	 	(36	)	 	 	9.0	%	 	 	2,219	 	 	 	82.2	%	 	 	1,131	 	 	 	161.3	%	 	 	15,856	 	 	 	93.5	%
	Total Revenue	 	 	3,402	 	 	 	100.0	%	 	 	3,800	 	 	 	100.0	%	 	 	(398	)	 	 	100.0	%	 	 	2,701	 	 	 	100.0	%	 	 	701	 	 	 	100.0	%	 	 	16,967	 	 	 	100.0	%
	Cost of Goods Sold	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	6400 · Cost of Telephone	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	6401 · Long Distance	 	 	(49	)	 	 	-1.4	%	 	 	927	 	 	 	24.4	%	 	 	(976	)	 	 	245.3	%	 	 	1,086	 	 	 	40.2	%	 	 	(1,134	)	 	 	-161.8	%	 	 	8,400	 	 	 	49.5	%
	6402
    · Local Phone Calls	 	 	1,026	 	 	 	30.2	%	 	 	480	 	 	 	12.6	%	 	 	546	 	 	 	-137.2	%	 	 	614	 	 	 	22.7	%	 	 	412	 	 	 	58.8	%	 	 	1,800	 	 	 	10.6	%
	Total 6400 · Cost of Telephone	 	 	977	 	 	 	28.7	%	 	 	1,407	 	 	 	37.0	%	 	 	(430	)	 	 	108.1	%	 	 	1,699	 	 	 	62.9	%	 	 	(722	)	 	 	-103.0	%	 	 	10,200	 	 	 	60.1	%
	6500 · Cost of Other Revenue	 	 	 	 	 	 	0.0	%	 	 	 	 	 	 	0.0	%	 	 	-	 	 	 	 	 	 	 	 	 	 	 	0.0	%	 	 	-	 	 	 	 	 	 	 	 	 	 	 	0.0	%
	6506 · Cost of guest
    Valet	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	6520
    · Cost of Misc. Revenue	 	 	50	 	 	 	1.5	%	 	 	46	 	 	 	1.2	%	 	 	4	 	 	 	-1.0	%	 	 	35	 	 	 	1.3	%	 	 	15	 	 	 	2.1	%	 	 	11	 	 	 	0.1	%
	Total 6500 · Cost
    of Other Revenue	 	 	50	 	 	 	1.5	%	 	 	46	 	 	 	1.2	%	 	 	4	 	 	 	-1.0	%	 	 	35	 	 	 	1.3	%	 	 	15	 	 	 	2.1	%	 	 	11	 	 	 	0.1	%
	Total COGS	 	 	1,027	 	 	 	30.2	%	 	 	1,453	 	 	 	38.2	%	 	 	(426	)	 	 	107.1	%	 	 	1,734	 	 	 	64.2	%	 	 	(707	)	 	 	-100.8	%	 	 	10,211	 	 	 	60.2	%
	Gross Profit	 	 	2,375	 	 	 	69.8	%	 	 	2,347	 	 	 	61.8	%	 	 	28	 	 	 	-7.1	%	 	 	967	 	 	 	35.8	%	 	 	1,408	 	 	 	200.8	%	 	 	6,756	 	 	 	39.8	%
	Net Income	 	$	2,375	 	 	 	69.8	%	 	$	2,347	 	 	 	61.8	%	 	$	28	 	 	 	-7.1	%	 	$	967	 	 	 	35.8	%	 	$	1,408	 	 	 	200.8	%	 	$	6,756	 	 	 	39.8	%

 

 

 

	 	Page 9 of 21	109.2. Ex 18(a)- 2nd Part - Orchards Inn March 13 Issue / Misc - AvB

 

 

    	 	 	 

    	 

     

	9:30 AM	Orchards Inn & Restaurant, LLC.	 
	06/10/10	Miscellaneous Department	 
	Accrual Basis	January through March 2013	 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	TOTAL	 
	 	 	Jan 13	 	 	% of Income	 	 	Feb 13	 	 	% of Income	 	 	Mar 13	 	 	% of Income	 	 	Jan - Mar 13	 	 	% of Income	 
	Ordinary Income/Expense	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Income	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4400 · Telephone Revenue	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4402 · Long Distance Charges	 	 	0.00	 	 	 	0.0	%	 	 	0.00	 	 	 	0.0	%	 	 	52.09	 	 	 	6.19	%	 	 	52.09	 	 	 	1.53	%
	Total 4400 · Telephone Revenue	 	 	0.00	 	 	 	0.0	%	 	 	0.00	 	 	 	0.0	%	 	 	52.09	 	 	 	6.19	%	 	 	52.09	 	 	 	1.53	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4500 · Miscellaneous Revenue	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4502 · UPS/Postage Charges	 	 	59.95	 	 	 	2.95	%	 	 	59.10	 	 	 	11.17	%	 	 	25.75	 	 	 	3.06	%	 	 	144.80	 	 	 	4.26	%
	4503 · Ticket Sales Tour	 	 	40.00	 	 	 	1.97	%	 	 	10.00	 	 	 	1.89	%	 	 	95.00	 	 	 	11.29	%	 	 	145.00	 	 	 	4.26	%
	4506 · Commissions Other	 	 	934.19	 	 	 	45.98	%	 	 	0.00	 	 	 	0.0	%	 	 	287.06	 	 	 	34.12	%	 	 	1,221.25	 	 	 	35.9	%
	4510 · Pet Fees	 	 	540.00	 	 	 	26.58	%	 	 	460.00	 	 	 	86.94	%	 	 	520.00	 	 	 	61.8	%	 	 	1,520.00	 	 	 	44.68	%
	4511 · Package Charges	 	 	0.00	 	 	 	0.0	%	 	 	0.00	 	 	 	0.0	%	 	 	0.00	 	 	 	0.0	%	 	 	0.00	 	 	 	0.0	%
	4515 · Baggage Fees	 	 	0.00	 	 	 	0.0	%	 	 	0.00	 	 	 	0.0	%	 	 	-235.00	 	 	 	-27.93	%	 	 	-235.00	 	 	 	-6.91	%
	4520 · Other Miscellaneous	 	 	457.47	 	 	 	22.52	%	 	 	0.00	 	 	 	0.0	%	 	 	96.50	 	 	 	11.47	%	 	 	553.97	 	 	 	16.28	%
	Total 4500 · Miscellaneous Revenue	 	 	2,031.61	 	 	 	100.0	%	 	 	529.10	 	 	 	100.0	%	 	 	789.31	 	 	 	93.81	%	 	 	3,350.02	 	 	 	98.47	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Income	 	 	2,031.61	 	 	 	100.0	%	 	 	529.10	 	 	 	100.0	%	 	 	841.40	 	 	 	100.0	%	 	 	3,402.11	 	 	 	100.0	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Cost of Goods Sold	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	6400 · Cost of Telephone	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	6401 · Long Distance	 	 	-69.36	 	 	 	-3.41	%	 	 	-5.93	 	 	 	-1.12	%	 	 	26.70	 	 	 	3.17	%	 	 	-48.59	 	 	 	-1.43	%
	6402 · Local Phone Calls	 	 	352.93	 	 	 	17.37	%	 	 	322.18	 	 	 	60.89	%	 	 	350.67	 	 	 	41.68	%	 	 	1,025.78	 	 	 	30.15	%
	Total 6400 · Cost of Telephone	 	 	283.57	 	 	 	13.96	%	 	 	316.25	 	 	 	59.77	%	 	 	377.37	 	 	 	44.85	%	 	 	977.19	 	 	 	28.72	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	6500 · Cost of Other Revenue	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	6520 · Cost of Misc. Revenue	 	 	10.00	 	 	 	0.49	%	 	 	0.00	 	 	 	0.0	%	 	 	40.00	 	 	 	4.75	%	 	 	50.00	 	 	 	1.47	%
	Total 6500 · Cost of Other Revenue	 	 	10.00	 	 	 	0.49	%	 	 	0.00	 	 	 	0.0	%	 	 	40.00	 	 	 	4.75	%	 	 	50.00	 	 	 	1.47	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total COGS	 	 	293.57	 	 	 	14.45	%	 	 	316.25	 	 	 	59.77	%	 	 	417.37	 	 	 	49.6	%	 	 	1,027.19	 	 	 	30.19	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Gross Profit	 	 	1,738.04	 	 	 	85.55	%	 	 	212.85	 	 	 	40.23	%	 	 	424.03	 	 	 	50.4	%	 	 	2,374.92	 	 	 	69.81	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Net Ordinary Income	 	 	1,738.04	 	 	 	85.55	%	 	 	212.85	 	 	 	40.23	%	 	 	424.03	 	 	 	50.4	%	 	 	2,374.92	 	 	 	69.81	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Net Income	 	 	1,738.04	 	 	 	85.55	%	 	 	212.85	 	 	 	40.23	%	 	 	424.03	 	 	 	50.4	%	 	 	2,374.92	 	 	 	69.81	%

 

 

	 	Page 10 of 21	109.2. Ex 18(a)- 2nd Part - Orchards Inn March 13 IssueMisc

 

 

    	 	 	 

    	 

     

	4:01 PM	Orchards Inn & Restaurant, LLC.	 
	01/17/11	Management Fees Expenses	 
	Accrual Basis	January through March 2013	 

 

	 	 	Type	 	Date	 	Num	 	Name	 	Memo	 	Amount	 
	9500 · Management Fees	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Bill	 	01/04/2013	 	Jan MF	 	Spector Office/Management Account	 	 	 	 	3,955.67	 
	 	 	Bill	 	02/01/2013	 	Feb Man Fee	 	Spector Office/Management Account	 	 	 	 	7,000.00	 
	 	 	Credit	 	02/28/2013	 	Feb Man Fee	 	Spector Office/Management Account	 	Adjust Feb Man Fee to 2%  actual for Feb Income of $269,558.13	 	 	-1,608.83	 
	 	 	Bill	 	03/01/2013	 	Mangnt Fees	 	Spector Office/Management Account	 	March Management Fees	 	 	8,000.00	 
	 	 	General Journal	 	03/31/2013	 	Mgmt Fee	 	 	 	Record March mgmt Fee 2% - Revenue $513,798.77 = $10,275.97 less advance $8,000	 	 	2,275.97	 
	Total 9500 · Management Fees	 	 	 	 	 	 	 	 	 	 	 	 	19,622.81	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	TOTAL	 	 	 	 	 	 	 	 	 	 	 	 	19,622.81	 

 

	 	Page 11 of 21	 

 

    	 	 	 

    	 

     

Orchards Inn and Restaurant

Admin and General Department

Actual vs. Budget and Prior Year

March 2013

 

	 	 	 	 
	 	 	Current Month	 
	 	 	Actual	 	 	% to

        Revenue
	 	 	Budget	 	 	% to

        Revenue
	 	 	Variance	 	 	% to

        Revenue
	 	 	Prior
                                                                                                                                                                                                                               Year	 	 	% to

        Revenue
	 	 	Variance	 	 	% to

        Revenue
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Expense	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5000 · Payroll & Benefits	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5686000 · G&A Salaries
    & Wages	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5684000 · Finance	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5684100 · Controller	 	 	(824	)	 	 	-0.2	%	 	 	1,552	 	 	 	0.4	%	 	 	(2,376	)	 	 	-3.0	%	 	 	1,366	 	 	 	0.3	%	 	 	(2,190	)	 	 	-2.2	%
	5684110 · Assistant
    Controller	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	614	 	 	 	0.1	%	 	 	(614	)	 	 	-0.6	%
	5684130
    · Finance Coordinators	 	 	2,222	 	 	 	0.4	%	 	 	-	 	 	 	0.0	%	 	 	2,222	 	 	 	2.8	%	 	 	3,087	 	 	 	0.7	%	 	 	(865	)	 	 	-0.9	%
	Total 5684000 · Finance	 	 	1,398	 	 	 	0.3	%	 	 	1,552	 	 	 	0.4	%	 	 	(154	)	 	 	-0.2	%	 	 	5,067	 	 	 	1.2	%	 	 	(3,669	)	 	 	-3.6	%
	5686130 · G &
    A Coordinator	 	 	147	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	147	 	 	 	0.2	%	 	 	442	 	 	 	0.1	%	 	 	(295	)	 	 	-0.3	%
	5686150 · G &
    A Supervisor	 	 	355	 	 	 	0.1	%	 	 	-	 	 	 	0.0	%	 	 	355	 	 	 	0.5	%	 	 	392	 	 	 	0.1	%	 	 	(37	)	 	 	0.0	%
	5686160 · G &
    A Assistant Manager	 	 	(183	)	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	(183	)	 	 	-0.2	%	 	 	(30	)	 	 	0.0	%	 	 	(153	)	 	 	-0.2	%
	5686170 · G &
    A Manager	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	5686180 · G &
    A Director	 	 	559	 	 	 	0.1	%	 	 	-	 	 	 	0.0	%	 	 	559	 	 	 	0.7	%	 	 	464	 	 	 	0.1	%	 	 	95	 	 	 	0.1	%
	5686190 · G &
    A General Manager	 	 	3,583	 	 	 	0.7	%	 	 	-	 	 	 	0.0	%	 	 	3,583	 	 	 	4.6	%	 	 	2,771	 	 	 	0.7	%	 	 	812	 	 	 	0.8	%
	5686199 · G &
    A Shared Services	 	 	-	 	 	 	0.0	%	 	 	4,240	 	 	 	1.0	%	 	 	(4,240	)	 	 	-5.4	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	5686999
    · G&A Other Pay	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	Total 5686000 · G&A
    Salaries & Wages	 	 	5,858	 	 	 	1.1	%	 	 	5,792	 	 	 	1.3	%	 	 	220	 	 	 	0.3	%	 	 	9,106	 	 	 	2.2	%	 	 	(3,247	)	 	 	-3.2	%
	5686050 · G&A Taxes
    and Benefits	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5651 · G&A Payroll
    Taxes	 	 	236	 	 	 	0.0	%	 	 	716	 	 	 	0.2	%	 	 	(480	)	 	 	-0.6	%	 	 	682	 	 	 	0.2	%	 	 	(446	)	 	 	-0.4	%
	5652 · G&A Workers'
    Comp	 	 	7	 	 	 	0.0	%	 	 	5	 	 	 	0.0	%	 	 	2	 	 	 	0.0	%	 	 	4	 	 	 	0.0	%	 	 	2	 	 	 	0.0	%
	5653 · G&A Employ
    Benefits	 	 	110	 	 	 	0.0	%	 	 	213	 	 	 	0.0	%	 	 	(104	)	 	 	-0.1	%	 	 	203	 	 	 	0.0	%	 	 	(94	)	 	 	-0.1	%
	5655 · G&A PTO	 	 	59	 	 	 	0.0	%	 	 	103	 	 	 	0.0	%	 	 	(44	)	 	 	-0.1	%	 	 	98	 	 	 	0.0	%	 	 	(39	)	 	 	0.0	%
	5656 · G&A Empoy
    Meals	 	 	14	 	 	 	0.0	%	 	 	531	 	 	 	0.1	%	 	 	(517	)	 	 	-0.7	%	 	 	506	 	 	 	0.1	%	 	 	(492	)	 	 	-0.5	%
	5699
    · G&A Shared Services Fringes	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	Total
    5686050 · G&A Taxes and Benefits	 	 	425	 	 	 	0.1	%	 	 	1,569	 	 	 	0.4	%	 	 	(1,143	)	 	 	-1.5	%	 	 	1,494	 	 	 	0.4	%	 	 	(1,069	)	 	 	-1.1	%
	Total 5000 · Payroll & Benefits	 	 	6,284	 	 	 	1.2	%	 	 	7,361	 	 	 	1.7	%	 	 	(1,077	)	 	 	-1.4	%	 	 	10,600	 	 	 	2.6	%	 	 	(4,316	)	 	 	-4.3	%
	8600 · General & Administrative	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	8601 · Workers' Comp
    Adjustments	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8602 · Sales Tax Expense	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8604 · Tax Penalties
    & Fees	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8610 · IT Support	 	 	804	 	 	 	0.2	%	 	 	-	 	 	 	0.0	%	 	 	804	 	 	 	1.0	%	 	 	82	 	 	 	0.0	%	 	 	722	 	 	 	0.7	%
	8635 · Uniforms	 	 	50	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	50	 	 	 	0.1	%	 	 	-	 	 	 	0.0	%	 	 	50	 	 	 	0.0	%
	8650 · Maint/Service Contract	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8651 · Computer Maint.
    & Support	 	 	28	 	 	 	0.0	%	 	 	2,000	 	 	 	0.5	%	 	 	(1,972	)	 	 	-2.5	%	 	 	1,787	 	 	 	0.4	%	 	 	(1,759	)	 	 	-1.7	%
	8660 · Legal Fees	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8661 · Charitable Contributions	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8672 · Accounting Fees	 	 	-	 	 	 	0.0	%	 	 	420	 	 	 	0.1	%	 	 	(420	)	 	 	-0.5	%	 	 	393	 	 	 	0.1	%	 	 	(393	)	 	 	-0.4	%
	8674 · Guest Lost/Damaged
    Property	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8675 · Bad Debt Expense	 	 	-	 	 	 	0.0	%	 	 	115	 	 	 	0.0	%	 	 	(115	)	 	 	-0.1	%	 	 	108	 	 	 	0.0	%	 	 	(108	)	 	 	-0.1	%
	8676 · Uncollectible
    Charges - Amara	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8678 · Express Mail	 	 	-	 	 	 	0.0	%	 	 	50	 	 	 	0.0	%	 	 	(50	)	 	 	-0.1	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8679 · Payroll Processing
    Fees	 	 	1,489	 	 	 	0.3	%	 	 	895	 	 	 	0.2	%	 	 	594	 	 	 	0.8	%	 	 	837	 	 	 	0.2	%	 	 	653	 	 	 	0.6	%
	8680 · Postage	 	 	47	 	 	 	0.0	%	 	 	7	 	 	 	0.0	%	 	 	40	 	 	 	0.1	%	 	 	7	 	 	 	0.0	%	 	 	40	 	 	 	0.0	%
	8681 · Dues & Subscriptions	 	 	-	 	 	 	0.0	%	 	 	25	 	 	 	0.0	%	 	 	(25	)	 	 	0.0	%	 	 	24	 	 	 	0.0	%	 	 	(24	)	 	 	0.0	%
	8682 · Printing	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8683 · Credit Card
    Fees	 	 	9,618	 	 	 	1.9	%	 	 	5,693	 	 	 	1.3	%	 	 	3,925	 	 	 	5.0	%	 	 	5,321	 	 	 	1.3	%	 	 	4,297	 	 	 	4.3	%
	8684 · Bank Fees	 	 	50	 	 	 	0.0	%	 	 	27	 	 	 	0.0	%	 	 	23	 	 	 	0.0	%	 	 	25	 	 	 	0.0	%	 	 	25	 	 	 	0.0	%
	8685 · Telephone Cell
    & Radio	 	 	89	 	 	 	0.0	%	 	 	295	 	 	 	0.1	%	 	 	(205	)	 	 	-0.3	%	 	 	275	 	 	 	0.1	%	 	 	(186	)	 	 	-0.2	%
	8686 · Security	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8687 · Employee Recruitment	 	 	219	 	 	 	0.0	%	 	 	270	 	 	 	0.1	%	 	 	(51	)	 	 	-0.1	%	 	 	252	 	 	 	0.1	%	 	 	(33	)	 	 	0.0	%
	8688 · Employee Relations
    & Training	 	 	168	 	 	 	0.0	%	 	 	203	 	 	 	0.0	%	 	 	(36	)	 	 	0.0	%	 	 	190	 	 	 	0.0	%	 	 	(22	)	 	 	0.0	%
	8690 · Office Supplies	 	 	-	 	 	 	0.0	%	 	 	595	 	 	 	0.1	%	 	 	(595	)	 	 	-0.8	%	 	 	556	 	 	 	0.1	%	 	 	(556	)	 	 	-0.6	%
	8691 · Employee Relocation	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	1,219	 	 	 	0.3	%	 	 	(1,219	)	 	 	-1.2	%
	8692 · Cash over/short	 	 	1	 	 	 	0.0	%	 	 	(8	)	 	 	0.0	%	 	 	9	 	 	 	0.0	%	 	 	(7	)	 	 	0.0	%	 	 	8	 	 	 	0.0	%
	8693 · Licenses &
    Permits	 	 	296	 	 	 	0.1	%	 	 	1,583	 	 	 	0.4	%	 	 	(1,287	)	 	 	-1.6	%	 	 	1,479	 	 	 	0.4	%	 	 	(1,183	)	 	 	-1.2	%
	8694 · Student Housing	 	 	166	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	166	 	 	 	0.2	%	 	 	319	 	 	 	0.1	%	 	 	(153	)	 	 	-0.2	%
	8695 · Equipment Lease	 	 	254	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	254	 	 	 	0.3	%	 	 	302	 	 	 	0.1	%	 	 	(49	)	 	 	0.0	%
	8696 · Business Travel	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8697 · Business Meals	 	 	-	 	 	 	0.0	%	 	 	314	 	 	 	0.1	%	 	 	(314	)	 	 	-0.4	%	 	 	293	 	 	 	0.1	%	 	 	(293	)	 	 	-0.3	%
	8698 · Consultants	 	 	619	 	 	 	0.1	%	 	 	522	 	 	 	0.1	%	 	 	96	 	 	 	0.1	%	 	 	488	 	 	 	0.1	%	 	 	131	 	 	 	0.1	%
	8699 · Miscellaneous	 	 	-	 	 	 	0.0	%	 	 	1,969	 	 	 	0.5	%	 	 	(1,969	)	 	 	-2.5	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	Total 8600 · General
    & Administrative	 	 	13,899	 	 	 	2.7	%	 	 	14,977	 	 	 	3.4	%	 	 	(1,078	)	 	 	-1.4	%	 	 	13,950	 	 	 	3.4	%	 	 	(51	)	 	 	-0.1	%
	Total Expense	 	 	20,182	 	 	 	3.9	%	 	 	22,338	 	 	 	5.1	%	 	 	(2,155	)	 	 	-2.8	%	 	 	24,550	 	 	 	5.9	%	 	 	(4,367	)	 	 	-4.3	%
	Net Income	 	$	(20,182	)	 	 	-3.9	%	 	$	(22,338	)	 	 	-5.1	%	 	$	2,155	 	 	 	2.8	%	 	$	(24,550	)	 	 	-5.9	%	 	$	4,367	 	 	 	4.3	%

 

	 	 	 	 	 	Budget	 
	 	 	Year to Date	 	 	Full Year	 
	 	 	Actual	 	 	% to

        Revenue
	 	 	Budget	 	 	% to

        Revenue
	 	 	Variance	 	 	% to

        Revenue
	 	 	Prior
                                                                                                                                                                                                                               Year	 	 	% to

        Revenue
	 	 	Variance	 	 	% to

        Revenue
	 	 	Amount	 	 	% to

        Revenue
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Expense	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5000 · Payroll & Benefits	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5686000 · G&A Salaries
    & Wages	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5684000 · Finance	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5684100 · Controller	 	 	(870	)	 	 	-0.1	%	 	 	2,811	 	 	 	0.3	%	 	 	(3,681	)	 	 	-4.0	%	 	 	4,087	 	 	 	0.5	%	 	 	(4,957	)	 	 	-3.7	%	 	 	14,400	 	 	 	0.4	%
	5684110 · Assistant
    Controller	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	1,130	 	 	 	0.1	%	 	 	(1,130	)	 	 	-0.8	%	 	 	2,880	 	 	 	0.1	%
	5684130
    · Finance Coordinators	 	 	6,977	 	 	 	0.7	%	 	 	-	 	 	 	0.0	%	 	 	6,977	 	 	 	7.6	%	 	 	3,092	 	 	 	0.4	%	 	 	3,885	 	 	 	2.9	%	 	 	5,892	 	 	 	0.2	%
	Total 5684000 · Finance	 	 	6,107	 	 	 	0.6	%	 	 	2,811	 	 	 	0.3	%	 	 	3,296	 	 	 	3.6	%	 	 	8,308	 	 	 	1.0	%	 	 	(2,201	)	 	 	-1.6	%	 	 	23,172	 	 	 	0.6	%
	5686130 · G &
    A Coordinator	 	 	441	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	441	 	 	 	0.5	%	 	 	1,202	 	 	 	0.1	%	 	 	(762	)	 	 	-0.6	%	 	 	1,560	 	 	 	0.0	%
	5686150 · G &
    A Supervisor	 	 	1,379	 	 	 	0.1	%	 	 	-	 	 	 	0.0	%	 	 	1,379	 	 	 	1.5	%	 	 	1,038	 	 	 	0.1	%	 	 	340	 	 	 	0.3	%	 	 	4,428	 	 	 	0.1	%
	5686160 · G &
    A Assistant Manager	 	 	(349	)	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	(349	)	 	 	-0.4	%	 	 	(30	)	 	 	0.0	%	 	 	(319	)	 	 	-0.2	%	 	 	-	 	 	 	0.0	%
	5686170 · G &
    A Manager	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	5686180 · G &
    A Director	 	 	1,549	 	 	 	0.2	%	 	 	-	 	 	 	0.0	%	 	 	1,549	 	 	 	1.7	%	 	 	2,444	 	 	 	0.3	%	 	 	(895	)	 	 	-0.7	%	 	 	8,676	 	 	 	0.2	%
	5686190 · G &
    A General Manager	 	 	9,899	 	 	 	1.0	%	 	 	-	 	 	 	0.0	%	 	 	9,899	 	 	 	10.8	%	 	 	7,755	 	 	 	0.9	%	 	 	2,144	 	 	 	1.6	%	 	 	30,600	 	 	 	0.8	%
	5686199 · G &
    A Shared Services	 	 	-	 	 	 	0.0	%	 	 	13,332	 	 	 	1.5	%	 	 	(13,332	)	 	 	-14.6	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	3,612	 	 	 	0.1	%
	5686999
    · G&A Other Pay	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	16,960	 	 	 	0.5	%
	Total 5686000 · G&A
    Salaries & Wages	 	 	19,026	 	 	 	1.9	%	 	 	16,142	 	 	 	1.8	%	 	 	(413	)	 	 	-0.5	%	 	 	20,718	 	 	 	2.4	%	 	 	509	 	 	 	0.4	%	 	 	89,008	 	 	 	2.4	%
	5686050 · G&A Taxes
    and Benefits	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.0	%
	5651 · G&A Payroll
    Taxes	 	 	1,200	 	 	 	0.1	%	 	 	1,882	 	 	 	0.2	%	 	 	(681	)	 	 	-0.7	%	 	 	2,024	 	 	 	0.2	%	 	 	(824	)	 	 	-0.6	%	 	 	7,120	 	 	 	0.2	%
	5652 · G&A Workers'
    Comp	 	 	21	 	 	 	0.0	%	 	 	10	 	 	 	0.0	%	 	 	11	 	 	 	0.0	%	 	 	24	 	 	 	0.0	%	 	 	(3	)	 	 	0.0	%	 	 	820	 	 	 	0.0	%
	5653 · G&A Employ
    Benefits	 	 	388	 	 	 	0.0	%	 	 	233	 	 	 	0.0	%	 	 	155	 	 	 	0.2	%	 	 	189	 	 	 	0.0	%	 	 	199	 	 	 	0.1	%	 	 	2,400	 	 	 	0.1	%
	5655 · G&A PTO	 	 	388	 	 	 	0.0	%	 	 	371	 	 	 	0.0	%	 	 	17	 	 	 	0.0	%	 	 	146	 	 	 	0.0	%	 	 	242	 	 	 	0.2	%	 	 	-	 	 	 	0.0	%
	5656 · G&A Empoy
    Meals	 	 	76	 	 	 	0.0	%	 	 	1,963	 	 	 	0.2	%	 	 	(1,886	)	 	 	-2.1	%	 	 	1,935	 	 	 	0.2	%	 	 	(1,859	)	 	 	-1.4	%	 	 	-	 	 	 	0.0	%
	5699
    · G&A Shared Services Fringes	 	 	-	 	 	 	0.0	%	 	 	887	 	 	 	0.1	%	 	 	(887	)	 	 	-1.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	Total
    5686050 · G&A Taxes and Benefits	 	 	2,074	 	 	 	0.2	%	 	 	5,345	 	 	 	0.6	%	 	 	(3,271	)	 	 	-3.6	%	 	 	4,318	 	 	 	0.5	%	 	 	(2,244	)	 	 	-1.7	%	 	 	10,340	 	 	 	0.3	%
	Total 5000 · Payroll & Benefits	 	 	21,099	 	 	 	2.2	%	 	 	21,487	 	 	 	2.4	%	 	 	(388	)	 	 	-0.4	%	 	 	25,036	 	 	 	3.0	%	 	 	(3,937	)	 	 	-2.9	%	 	 	99,348	 	 	 	2.6	%
	8600 · General & Administrative	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	8601 · Workers' Comp
    Adjustments	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8602 · Sales Tax Expense	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	6,000	 	 	 	0.2	%
	8604 · Tax Penalties
    & Fees	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8610 · IT Support	 	 	1,300	 	 	 	0.1	%	 	 	-	 	 	 	0.0	%	 	 	1,300	 	 	 	1.4	%	 	 	869	 	 	 	0.1	%	 	 	432	 	 	 	0.3	%	 	 	4,200	 	 	 	0.1	%
	8635 · Uniforms	 	 	91	 	 	 	0.0	%	 	 	41	 	 	 	0.0	%	 	 	50	 	 	 	0.1	%	 	 	-	 	 	 	0.0	%	 	 	91	 	 	 	0.1	%	 	 	-	 	 	 	0.0	%
	8650 · Maint/Service Contract	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	600	 	 	 	0.0	%
	8651 · Computer Maint.
    & Support	 	 	465	 	 	 	0.0	%	 	 	2,585	 	 	 	0.3	%	 	 	(2,120	)	 	 	-2.3	%	 	 	1,926	 	 	 	0.2	%	 	 	(1,461	)	 	 	-1.1	%	 	 	600	 	 	 	0.0	%
	8660 · Legal Fees	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8661 · Charitable Contributions	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	17	 	 	 	0.0	%	 	 	(17	)	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8672 · Accounting Fees	 	 	-	 	 	 	0.0	%	 	 	1,299	 	 	 	0.1	%	 	 	(1,299	)	 	 	-1.4	%	 	 	1,607	 	 	 	0.2	%	 	 	(1,607	)	 	 	-1.2	%	 	 	6,600	 	 	 	0.2	%
	8674 · Guest Lost/Damaged
    Property	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8675 · Bad Debt Expense	 	 	-	 	 	 	0.0	%	 	 	115	 	 	 	0.0	%	 	 	(115	)	 	 	-0.1	%	 	 	108	 	 	 	0.0	%	 	 	(108	)	 	 	-0.1	%	 	 	-	 	 	 	0.0	%
	8676 · Uncollectible
    Charges - Amara	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8678 · Express Mail	 	 	152	 	 	 	0.0	%	 	 	252	 	 	 	0.0	%	 	 	(100	)	 	 	-0.1	%	 	 	-	 	 	 	0.0	%	 	 	152	 	 	 	0.1	%	 	 	-	 	 	 	0.0	%
	8679 · Payroll Processing
    Fees	 	 	3,127	 	 	 	0.3	%	 	 	2,519	 	 	 	0.3	%	 	 	608	 	 	 	0.7	%	 	 	2,154	 	 	 	0.3	%	 	 	974	 	 	 	0.7	%	 	 	5,100	 	 	 	0.1	%
	8680 · Postage	 	 	82	 	 	 	0.0	%	 	 	67	 	 	 	0.0	%	 	 	15	 	 	 	0.0	%	 	 	52	 	 	 	0.0	%	 	 	30	 	 	 	0.0	%	 	 	100	 	 	 	0.0	%
	8681 · Dues & Subscriptions	 	 	30	 	 	 	0.0	%	 	 	55	 	 	 	0.0	%	 	 	(25	)	 	 	0.0	%	 	 	24	 	 	 	0.0	%	 	 	6	 	 	 	0.0	%	 	 	1,572	 	 	 	0.0	%
	8682 · Printing	 	 	-	 	 	 	0.0	%	 	 	27	 	 	 	0.0	%	 	 	(27	)	 	 	0.0	%	 	 	25	 	 	 	0.0	%	 	 	(25	)	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8683 · Credit Card
    Fees	 	 	26,902	 	 	 	2.7	%	 	 	20,820	 	 	 	2.3	%	 	 	6,082	 	 	 	6.7	%	 	 	16,115	 	 	 	1.9	%	 	 	10,787	 	 	 	8.1	%	 	 	75,132	 	 	 	2.0	%
	8684 · Bank Fees	 	 	400	 	 	 	0.0	%	 	 	327	 	 	 	0.0	%	 	 	73	 	 	 	0.1	%	 	 	25	 	 	 	0.0	%	 	 	375	 	 	 	0.3	%	 	 	1,977	 	 	 	0.1	%
	8685 · Telephone Cell
    & Radio	 	 	140	 	 	 	0.0	%	 	 	750	 	 	 	0.1	%	 	 	(610	)	 	 	-0.7	%	 	 	665	 	 	 	0.1	%	 	 	(525	)	 	 	-0.4	%	 	 	600	 	 	 	0.0	%
	8686 · Security	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8687 · Employee Recruitment	 	 	219	 	 	 	0.0	%	 	 	270	 	 	 	0.0	%	 	 	(51	)	 	 	-0.1	%	 	 	399	 	 	 	0.0	%	 	 	(180	)	 	 	-0.1	%	 	 	-	 	 	 	0.0	%
	8688 · Employee Relations
    & Training	 	 	168	 	 	 	0.0	%	 	 	392	 	 	 	0.0	%	 	 	(224	)	 	 	-0.2	%	 	 	366	 	 	 	0.0	%	 	 	(198	)	 	 	-0.1	%	 	 	1,200	 	 	 	0.0	%
	8690 · Office Supplies	 	 	2	 	 	 	0.0	%	 	 	814	 	 	 	0.1	%	 	 	(813	)	 	 	-0.9	%	 	 	1,077	 	 	 	0.1	%	 	 	(1,075	)	 	 	-0.8	%	 	 	1,224	 	 	 	0.0	%
	8691 · Employee Relocation	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	1,219	 	 	 	0.1	%	 	 	(1,219	)	 	 	-0.9	%	 	 	-	 	 	 	0.0	%
	8692 · Cash over/short	 	 	1	 	 	 	0.0	%	 	 	(8	)	 	 	0.0	%	 	 	9	 	 	 	0.0	%	 	 	(32	)	 	 	0.0	%	 	 	33	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8693 · Licenses &
    Permits	 	 	363	 	 	 	0.0	%	 	 	1,944	 	 	 	0.2	%	 	 	(1,581	)	 	 	-1.7	%	 	 	1,780	 	 	 	0.2	%	 	 	(1,417	)	 	 	-1.1	%	 	 	200	 	 	 	0.0	%
	8694 · Student Housing	 	 	918	 	 	 	0.1	%	 	 	-	 	 	 	0.0	%	 	 	918	 	 	 	1.0	%	 	 	1,084	 	 	 	0.1	%	 	 	(166	)	 	 	-0.1	%	 	 	-	 	 	 	0.0	%
	8695 · Equipment Lease	 	 	617	 	 	 	0.1	%	 	 	-	 	 	 	0.0	%	 	 	617	 	 	 	0.7	%	 	 	302	 	 	 	0.0	%	 	 	315	 	 	 	0.2	%	 	 	900	 	 	 	0.0	%
	8696 · Business Travel	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8697 · Business Meals	 	 	-	 	 	 	0.0	%	 	 	395	 	 	 	0.0	%	 	 	(395	)	 	 	-0.4	%	 	 	468	 	 	 	0.1	%	 	 	(468	)	 	 	-0.4	%	 	 	-	 	 	 	0.0	%
	8698 · Consultants	 	 	2,058	 	 	 	0.2	%	 	 	1,866	 	 	 	0.2	%	 	 	193	 	 	 	0.2	%	 	 	1,538	 	 	 	0.2	%	 	 	521	 	 	 	0.4	%	 	 	-	 	 	 	0.0	%
	8699 · Miscellaneous	 	 	(3,280	)	 	 	-0.3	%	 	 	3,671	 	 	 	0.4	%	 	 	(6,951	)	 	 	-7.6	%	 	 	-	 	 	 	0.0	%	 	 	(3,280	)	 	 	-2.5	%	 	 	-	 	 	 	0.0	%
	Total 8600 · General
    & Administrative	 	 	33,756	 	 	 	3.4	%	 	 	38,201	 	 	 	4.3	%	 	 	(4,445	)	 	 	-4.9	%	 	 	31,785	 	 	 	3.7	%	 	 	1,971	 	 	 	1.5	%	 	 	106,005	 	 	 	2.8	%
	Total Expense	 	 	54,855	 	 	 	5.6	%	 	 	59,688	 	 	 	6.7	%	 	 	(4,833	)	 	 	-5.3	%	 	 	56,821	 	 	 	6.7	%	 	 	(1,966	)	 	 	-1.5	%	 	 	205,353	 	 	 	5.5	%
	Net Income	 	$	(54,855	)	 	 	-5.6	%	 	$	(59,688	)	 	 	-6.7	%	 	 	4,833	 	 	 	5.3	%	 	$	(56,821	)	 	 	-6.7	%	 	$	1,966	 	 	 	1.5	%	 	$	(205,353	)	 	 	-5.5	%

 

 

 

	 	Page 12 of 21	109.2. Ex 18(a)- 2nd Part - Orchards Inn March 13 Issue / A&G - AvB

 

 

    	 	 	 

    	 

     

Orchards Inn & Restaurant, LLC.

Administrative and General Department

January through March 2013

 

	 	 	Jan 13	 	 	Feb 13	 	 	Mar 13	 	 	TOTAL	 
	Ordinary Income/Expense	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Expense	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5000 · Payroll & Benefits	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5686000 · G&A Salaries & Wages	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5684000 · Finance	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5684100 · Controller	 	 	-870.00	 	 	 	824.16	 	 	 	-824.16	 	 	 	-870.00	 
	5684130 · Finance Coordinators	 	 	2,821.21	 	 	 	1,933.81	 	 	 	2,222.16	 	 	 	6,977.18	 
	Total 5684000 · Finance	 	 	1,951.21	 	 	 	2,757.97	 	 	 	1,398.00	 	 	 	6,107.18	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5686130 · G & A Coordinator	 	 	146.88	 	 	 	146.88	 	 	 	146.88	 	 	 	440.64	 
	5686150 · G & A Supervisor	 	 	630.00	 	 	 	394.12	 	 	 	354.56	 	 	 	1,378.68	 
	5686160 · G & A Assistant Manager	 	 	-205.00	 	 	 	39.23	 	 	 	-183.09	 	 	 	-348.86	 
	5686180 · G & A Director	 	 	617.01	 	 	 	372.70	 	 	 	559.05	 	 	 	1,548.76	 
	5686190 · G & A General Manager	 	 	2,203.99	 	 	 	4,112.36	 	 	 	3,582.75	 	 	 	9,899.10	 
	Total 5686000 · G&A Salaries & Wages	 	 	5,344.09	 	 	 	7,823.26	 	 	 	5,858.15	 	 	 	19,025.50	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5686050 · G&A Taxes and Benefits	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5651 · G&A Payroll Taxes	 	 	442.48	 	 	 	521.96	 	 	 	236.03	 	 	 	1,200.47	 
	5652 · G&A Workers' Comp	 	 	6.85	 	 	 	6.85	 	 	 	6.85	 	 	 	20.55	 
	5653 · G&A Employ Benefits	 	 	139.36	 	 	 	139.36	 	 	 	109.50	 	 	 	388.22	 
	5655 · G&A PTO	 	 	259.72	 	 	 	69.16	 	 	 	59.14	 	 	 	388.02	 
	5656 · G&A Empoy Meals	 	 	9.97	 	 	 	52.54	 	 	 	13.84	 	 	 	76.35	 
	Total 5686050 · G&A Taxes and Benefits	 	 	858.38	 	 	 	789.87	 	 	 	425.36	 	 	 	2,073.61	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total 5000 · Payroll & Benefits	 	 	6,202.47	 	 	 	8,613.13	 	 	 	6,283.51	 	 	 	21,099.11	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	8600 · General & Administrative	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	8610 · IT Support	 	 	58.01	 	 	 	438.47	 	 	 	804.01	 	 	 	1,300.49	 
	8635 · Uniforms	 	 	40.88	 	 	 	0.00	 	 	 	50.10	 	 	 	90.98	 
	8651 · Computer Maint. & Support	 	 	408.69	 	 	 	28.23	 	 	 	28.23	 	 	 	465.15	 
	8678 · Express Mail	 	 	151.65	 	 	 	0.00	 	 	 	0.00	 	 	 	151.65	 
	8679 · Payroll Processing Fees	 	 	638.34	 	 	 	999.31	 	 	 	1,489.44	 	 	 	3,127.09	 
	8680 · Postage	 	 	35.57	 	 	 	0.00	 	 	 	46.92	 	 	 	82.49	 
	8681 · Dues & Subscriptions	 	 	30.00	 	 	 	0.00	 	 	 	0.00	 	 	 	30.00	 
	8683 · Credit Card Fees	 	 	7,863.71	 	 	 	9,420.03	 	 	 	9,618.15	 	 	 	26,901.89	 
	8684 · Bank Fees	 	 	299.95	 	 	 	49.95	 	 	 	49.95	 	 	 	399.85	 
	8685 · Telephone Cell & Radio	 	 	38.25	 	 	 	12.75	 	 	 	89.25	 	 	 	140.25	 
	8687 · Employee Recruitment	 	 	0.00	 	 	 	0.00	 	 	 	219.45	 	 	 	219.45	 
	8688 · Employee Relations & Training	 	 	0.00	 	 	 	0.00	 	 	 	167.79	 	 	 	167.79	 
	8690 · Office Supplies	 	 	1.69	 	 	 	0.00	 	 	 	0.00	 	 	 	1.69	 
	8692 · Cash over/short	 	 	-0.12	 	 	 	-0.27	 	 	 	1.29	 	 	 	0.90	 
	8693 · Licenses & Permits	 	 	39.27	 	 	 	27.54	 	 	 	295.80	 	 	 	362.61	 
	8694 · Student Housing	 	 	395.25	 	 	 	357.00	 	 	 	165.75	 	 	 	918.00	 
	8695 · Equipment Lease	 	 	286.30	 	 	 	77.26	 	 	 	253.72	 	 	 	617.28	 
	8698 · Consultants	 	 	820.56	 	 	 	618.84	 	 	 	618.84	 	 	 	2,058.24	 
	8699 · Miscellaneous	 	 	625.00	 	 	 	-3,904.84	 	 	 	0.00	 	 	 	-3,279.84	 
	Total 8600 · General & Administrative	 	 	11,733.00	 	 	 	8,124.27	 	 	 	13,898.69	 	 	 	33,755.96	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Expense	 	 	17,935.47	 	 	 	16,737.40	 	 	 	20,182.20	 	 	 	54,855.07	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Net Ordinary Income	 	 	-17,935.47	 	 	 	-16,737.40	 	 	 	-20,182.20	 	 	 	-54,855.07	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Net Income	 	 	-17,935.47	 	 	 	-16,737.40	 	 	 	-20,182.20	 	 	 	-54,855.07	 

 

 

	 	Page 13 of 21	109.2. Ex 18(a)- 2nd Part - Orchards Inn March 13 Issue / A&G

 

 

    	 	 	 

    	 

     

Orchards Inn and Restaurant

Sales and Marketing Department

Actual vs. Budget and Prior Year

March 2013

 

	 	 	 	 	 
	 	 	Current Month	 	 
	 	 	Actual	 	 	% to

        Revenue
	 	 	Budget	 	 	% to

        Revenue
	 	 	Variance	 	 	% to

        Revenue
	 	 	Prior
                                                                                                                                                                                                                               Year	 	 	% to

        Revenue
	 	 	Variance	 	 	% to

        Revenue
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Expense	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5000 · Payroll & Benefits	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5787000 · .Sales Salaries
    & Wages	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5787170 ·
    Marketing Manager	 	 	969	 	 	 	0.2	%	 	 	70	 	 	 	0.0	%	 	 	900	 	 	 	1.2	%	 	 	66	 	 	 	0.0	%	 	 	903	 	 	 	0.9	%	 
	5787180
    · DO Marketing	 	 	462	 	 	 	0.1	%	 	 	506	 	 	 	0.1	%	 	 	(45	)	 	 	-0.1	%	 	 	482	 	 	 	0.1	%	 	 	(21	)	 	 	0.0	%	 
	Total
    5787000 · .Sales Salaries & Wages	 	 	1,431	 	 	 	0	%	 	 	576	 	 	 	0.1	%	 	 	900	 	 	 	1.2	%	 	 	548	 	 	 	0.1	%	 	 	903	 	 	 	0.9	%	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5787050 · Sales Taxes
    & Benefits	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5751
    · Sales Payroll & Taxes	 	 	271	 	 	 	0.1	%	 	 	58	 	 	 	0.0	%	 	 	212	 	 	 	0.3	%	 	 	56	 	 	 	0.0	%	 	 	215	 	 	 	0.2	%	 
	Total
    5787050 · Sales Taxes & Benefits	 	 	271	 	 	 	0.1	%	 	 	58	 	 	 	0.0	%	 	 	212	 	 	 	0.3	%	 	 	56	 	 	 	0.0	%	 	 	215	 	 	 	0.2	%	 
	Total 5000 · Payroll
    & Benefits	 	 	1,702	 	 	 	0.3	%	 	 	634	 	 	 	0.1	%	 	 	1,112	 	 	 	1.4	%	 	 	604	 	 	 	0.1	%	 	 	1,118	 	 	 	1.1	%	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.0	%	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.0	%	 
	8700 · Sales & Marketing	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.0	%	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.0	%	 
	8700 · Sales &
    Marketing - Other	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 
	8751 · Computer Maintenance
    & Support	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 
	8760 · Advertising	 	 	19	 	 	 	0.0	%	 	 	2,579	 	 	 	0.6	%	 	 	(2,560	)	 	 	-3.3	%	 	 	2,457	 	 	 	0.6	%	 	 	(2,438	)	 	 	-2.4	%	 
	8764 · Promotions	 	 	(153	)	 	 	0.0	%	 	 	14	 	 	 	0.0	%	 	 	(167	)	 	 	-0.2	%	 	 	13	 	 	 	0.0	%	 	 	(166	)	 	 	-0.2	%	 
	8765 · Public Relations	 	 	-	 	 	 	0.0	%	 	 	268	 	 	 	0.1	%	 	 	(268	)	 	 	-0.3	%	 	 	255	 	 	 	0.1	%	 	 	(255	)	 	 	-0.3	%	 
	8768 · Tradeshow	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 
	8776 · Photography	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 
	8781 · Dues & Subscriptions	 	 	87	 	 	 	0.0	%	 	 	536	 	 	 	0.1	%	 	 	(449	)	 	 	-0.6	%	 	 	511	 	 	 	0.1	%	 	 	(424	)	 	 	-0.4	%	 
	8782 · Website	 	 	96	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	96	 	 	 	0.1	%	 	 	-	 	 	 	0.0	%	 	 	96	 	 	 	0.1	%	 
	8783 · Internet Advertising	 	 	196	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	196	 	 	 	0.3	%	 	 	-	 	 	 	0.0	%	 	 	196	 	 	 	0.2	%	 
	8784 · Printing	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 
	8785 · Telephone Cell
    & Radio	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 
	8790 · Office Supplies	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 
	8792 · Visitors Center	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 
	8797 · Business Meals	 	 	-	 	 	 	0.0	%	 	 	54	 	 	 	0.0	%	 	 	(54	)	 	 	-0.1	%	 	 	52	 	 	 	0.0	%	 	 	(52	)	 	 	-0.1	%	 
	8798 · Consultants	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 
	8799
    · Tarsadia Intellegence Annual Am	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 
	Total 8700 · Sales
    & Marketing	 	 	245	 	 	 	0.0	%	 	 	3,452	 	 	 	0.8	%	 	 	(3,206	)	 	 	-4.1	%	 	 	3,287	 	 	 	0.8	%	 	 	(3,042	)	 	 	-3.0	%	 
	Total Expense	 	 	1,947	 	 	 	0.4	%	 	 	4,086	 	 	 	0.9	%	 	 	(2,139	)	 	 	-2.7	%	 	 	3,891	 	 	 	0.9	%	 	 	(1,944	)	 	 	-1.9	%	 
	Net Income	 	$	(1,947	)	 	 	-0.4	%	 	$	(4,086	)	 	 	-0.9	%	 	$	2,139	 	 	 	2.7	%	 	$	(3,891	)	 	 	-0.9	%	 	$	1,944	 	 	 	1.9	%	 

 

	 	 	 	 	 	Budget	 
	 	 	Year to Date	 	 	Full Year	 
	 	 	Actual	 	 	% to

        Revenue
	 	 	Budget	 	 	% to

        Revenue
	 	 	Variance	 	 	% to

        Revenue
	 	 	Prior
                                                                                                                                                                                                                               Year	 	 	% to

        Revenue
	 	 	Variance	 	 	% to

        Revenue
	 	 	Amount	 	 	% to

        Revenue
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Expense	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5000 · Payroll & Benefits	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5787000 · .Sales Salaries
    & Wages	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5787170 ·
    Marketing Manager	 	 	2,166	 	 	 	0.2	%	 	 	1,016	 	 	 	0.1	%	 	 	1,149	 	 	 	1.3	%	 	 	669	 	 	 	0.1	%	 	 	1,496	 	 	 	1.1	%	 	 	-	 	 	 	0.0	%
	5787180
    · DO Marketing	 	 	2,308	 	 	 	0.2	%	 	 	1,429	 	 	 	0.2	%	 	 	878	 	 	 	1.0	%	 	 	482	 	 	 	0.1	%	 	 	1,826	 	 	 	1.4	%	 	 	-	 	 	 	0.0	%
	Total
    5787000 · .Sales Salaries & Wages	 	 	4,473	 	 	 	0	 	 	 	2,446	 	 	 	0.6	%	 	 	1,149	 	 	 	1.3	%	 	 	1,151	 	 	 	0.3	%	 	 	1,496	 	 	 	1.1	%	 	 	-	 	 	 	0.0	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5787050 · Sales Taxes
    & Benefits	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5751
    · Sales Payroll & Taxes	 	 	621	 	 	 	0.1	%	 	 	478	 	 	 	0.1	%	 	 	143	 	 	 	0.2	%	 	 	79	 	 	 	0.0	%	 	 	542	 	 	 	0.4	%	 	 	-	 	 	 	0.0	%
	Total
    5787050 · Sales Taxes & Benefits	 	 	621	 	 	 	0.1	%	 	 	478	 	 	 	0.1	%	 	 	143	 	 	 	0.2	%	 	 	79	 	 	 	0.0	%	 	 	542	 	 	 	0.4	%	 	 	2125.9	%	 	 	3.9	%
	Total 5000 · Payroll
    & Benefits	 	 	5,094	 	 	 	1.0	%	 	 	2,923	 	 	 	0.7	%	 	 	1,292	 	 	 	1.4	%	 	 	1,230	 	 	 	0.3	%	 	 	2,038	 	 	 	1.5	%	 	 	512.8	%	 	 	0.3	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.0	%	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.0	%	 	 	 	 	 	 	 	 
	8700 · Sales & Marketing	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.0	%	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.0	%	 	 	 	 	 	 	 	 
	8700 · Sales &
    Marketing - Other	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	(7,867	)	 	 	-0.2	%
	8751 · Computer Maintenance
    & Support	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	200	 	 	 	0.0	%
	8760 · Advertising	 	 	465	 	 	 	0.0	%	 	 	2,680	 	 	 	0.3	%	 	 	(2,215	)	 	 	-2.4	%	 	 	2,552	 	 	 	0.3	%	 	 	(2,087	)	 	 	-1.6	%	 	 	22,460	 	 	 	0.6	%
	8764 · Promotions	 	 	(255	)	 	 	0.0	%	 	 	1,008	 	 	 	0.1	%	 	 	(1,263	)	 	 	-1.4	%	 	 	1,101	 	 	 	0.1	%	 	 	(1,356	)	 	 	-1.0	%	 	 	1,500	 	 	 	0.0	%
	8765 · Public Relations	 	 	-	 	 	 	0.0	%	 	 	536	 	 	 	0.1	%	 	 	(536	)	 	 	-0.6	%	 	 	1,010	 	 	 	0.1	%	 	 	(1,010	)	 	 	-0.8	%	 	 	1,200	 	 	 	0.0	%
	8768 · Tradeshow	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8776 · Photography	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	2,000	 	 	 	0.1	%
	8781 · Dues & Subscriptions	 	 	262	 	 	 	0.0	%	 	 	734	 	 	 	0.1	%	 	 	(473	)	 	 	-0.5	%	 	 	823	 	 	 	0.1	%	 	 	(562	)	 	 	-0.4	%	 	 	1,596	 	 	 	0.0	%
	8782 · Website	 	 	287	 	 	 	0.0	%	 	 	277	 	 	 	0.0	%	 	 	10	 	 	 	0.0	%	 	 	416	 	 	 	0.0	%	 	 	(130	)	 	 	-0.1	%	 	 	3,060	 	 	 	0.1	%
	8783 · Internet Advertising	 	 	196	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	196	 	 	 	0.2	%	 	 	-	 	 	 	0.0	%	 	 	196	 	 	 	0.1	%	 	 	16,800	 	 	 	0.4	%
	8784 · Printing	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	600	 	 	 	0.0	%
	8785 · Telephone Cell
    & Radio	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8790 · Office Supplies	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8792 · Visitors Center	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8797 · Business Meals	 	 	-	 	 	 	0.0	%	 	 	54	 	 	 	0.0	%	 	 	(54	)	 	 	-0.1	%	 	 	52	 	 	 	0.0	%	 	 	(52	)	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8798 · Consultants	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	2,000	 	 	 	0.1	%
	8799
    · Tarsadia Intellegence Annual Am	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	Total 8700 · Sales
    & Marketing	 	 	955	 	 	 	0.1	%	 	 	5,288	 	 	 	0.6	%	 	 	(4,334	)	 	 	-4.7	%	 	 	5,954	 	 	 	0.7	%	 	 	(4,999	)	 	 	-3.7	%	 	 	43,549	 	 	 	1.2	%
	Total Expense	 	 	6,048	 	 	 	0.6	%	 	 	8,211	 	 	 	0.9	%	 	 	(2,163	)	 	 	-2.4	%	 	 	7,184	 	 	 	0.8	%	 	 	(1,136	)	 	 	-0.9	%	 	 	43,554	 	 	 	1.2	%
	Net Income	 	$	(6,048	)	 	 	-0.6	%	 	$	(8,211	)	 	 	-0.9	%	 	$	(2,163	)	 	 	-2.4	%	 	$	(7,184	)	 	 	-0.8	%	 	$	1,136	 	 	 	0.9	%	 	$	(43,554	)	 	 	-1.2	%

 

 

 

	 	Page 14 of 21	109.2. Ex 18(a)- 2nd Part - Orchards Inn March 13 Issue / Sales - AvB

 

 

    	 	 	 

    	 

     

Orchards Inn & Restaurant, LLC.

Sales and Marketing Department

January through March 2013

 

	 	 	Jan 13	 	 	Feb 13	 	 	Mar 13	 	 	TOTAL	 
	Ordinary Income/Expense	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Expense	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5000 · Payroll & Benefits	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5787000 · .Sales Salaries & Wages	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5787170 · Marketing Manager	 	 	681.61	 	 	 	514.71	 	 	 	969.24	 	 	 	2,165.56	 
	5787180 · DO Marketing	 	 	923.08	 	 	 	923.08	 	 	 	461.54	 	 	 	2,307.70	 
	Total 5787000 · .Sales Salaries & Wages	 	 	1,604.69	 	 	 	1,437.79	 	 	 	1,430.78	 	 	 	4,473.26	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5787050 · Sales Taxes & Benefits	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5751 · Sales Payroll & Taxes	 	 	419.36	 	 	 	-69.44	 	 	 	270.72	 	 	 	620.64	 
	Total 5787050 · Sales Taxes & Benefits	 	 	419.36	 	 	 	-69.44	 	 	 	270.72	 	 	 	620.64	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total 5000 · Payroll & Benefits	 	 	2,024.05	 	 	 	1,368.35	 	 	 	1,701.50	 	 	 	5,093.90	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	8700 · Sales & Marketing	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	8760 · Advertising	 	 	0.00	 	 	 	445.73	 	 	 	19.11	 	 	 	464.84	 
	8764 · Promotions	 	 	0.00	 	 	 	-102.00	 	 	 	-153.00	 	 	 	-255.00	 
	8781 · Dues & Subscriptions	 	 	87.17	 	 	 	87.17	 	 	 	87.17	 	 	 	261.51	 
	8782 · Website	 	 	95.62	 	 	 	95.62	 	 	 	95.62	 	 	 	286.86	 
	8783 · Internet Advertising	 	 	0.00	 	 	 	0.00	 	 	 	196.35	 	 	 	196.35	 
	Total 8700 · Sales & Marketing	 	 	182.79	 	 	 	526.52	 	 	 	245.25	 	 	 	954.56	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Expense	 	 	2,206.84	 	 	 	1,894.87	 	 	 	1,946.75	 	 	 	6,048.46	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Net Ordinary Income	 	 	-2,206.84	 	 	 	-1,894.87	 	 	 	-1,946.75	 	 	 	-6,048.46	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Net Income	 	 	-2,206.84	 	 	 	-1,894.87	 	 	 	-1,946.75	 	 	 	-6,048.46	 

 

 

	 	Page 15 of 21	109.2. Ex 18(a)- 2nd Part - Orchards Inn March 13 Issue / Sales

 

 

    	 	 	 

    	 

     

 

Orchards Inn and Restaurant

Repair and Maintenance Department

Actual vs. Budget and Prior Year

March 2013

 

	 	 	 	 	 
	 	 	Current Month	 	 
	 	 	Actual	 	 	% to

        Revenue
	 	 	Budget	 	 	% to

        Revenue
	 	 	Variance	 	 	% to

        Revenue
	 	 	Prior

        Year
	 	 	% to

        Revenue
	 	 	Variance	 	 	% to

        Revenue
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Expense	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5000 · Payroll & Benefits	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5888000 · Engineering	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5888150 ·
    Lead Groundsman	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	212	 	 	 	0.1	%	 	 	(212	)	 	 	-0.2	%	 
	5888160 · Assistant
    Chief Engineer	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 
	5888180 · Chief Engineer	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	1,193	 	 	 	0.3	%	 	 	(1,193	)	 	 	-1.2	%	 
	5888600 · Groundsmen	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	1,010	 	 	 	0.2	%	 	 	(1,010	)	 	 	-1.0	%	 
	5888700 · Engineer
    I	 	 	-	 	 	 	0.0	%	 	 	10,180	 	 	 	2.3	%	 	 	(10,180	)	 	 	-13.0	%	 	 	7,919	 	 	 	1.9	%	 	 	(7,919	)	 	 	-7.9	%	 
	5888710 · Engineer
    II	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 
	5888999
    · Engineering Other Pay	 	 	10,180	 	 	 	2.0	%	 	 	-	 	 	 	0.0	%	 	 	10,180	 	 	 	13.0	%	 	 	-	 	 	 	0.0	%	 	 	10,180	 	 	 	10.1	%	 
	Total 5888000 · Engineering	 	 	10,180	 	 	 	2.0	%	 	 	10,180	 	 	 	2.3	%	 	 	-	 	 	 	0.0	%	 	 	10,334	 	 	 	2.5	%	 	 	(154	)	 	 	-0.2	%	 
	5888050 · Engineering Taxes & Benefits	 	 	 	 	 	 	0.0	%	 	 	 	 	 	 	0.0	%	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.0	%	 	 	 	 	 	 	 	 	 
	5851 · Prop Ops Payroll
    Taxes	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	1,229	 	 	 	0.3	%	 	 	(1,229	)	 	 	-1.2	%	 
	5852 · Prop Ops Workers'
    Comp	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 
	5853 · Prop Ops Employ
    Benefits	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	1,314	 	 	 	0.3	%	 	 	(1,314	)	 	 	-1.3	%	 
	5855 · Prop Ops PTO	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 
	5856 · Prop Ops Employ
    Meals	 	 	114	 	 	 	0.0	%	 	 	100	 	 	 	0.0	%	 	 	14	 	 	 	0.0	%	 	 	528	 	 	 	0.1	%	 	 	(414	)	 	 	-0.4	%	 
	5857
    · Shared PTO Expense	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 
	Total 5888050 · Engineering
    Taxes & Benefits	 	 	114	 	 	 	0.0	%	 	 	100	 	 	 	0.0	%	 	 	14	 	 	 	0.0	%	 	 	3,071	 	 	 	0.7	%	 	 	(2,957	)	 	 	-2.9	%	 
	Total 5000 · Payroll & Benefits	 	 	10,294	 	 	 	2.0	%	 	 	10,280	 	 	 	2.4	%	 	 	14	 	 	 	0.0	%	 	 	13,405	 	 	 	3.2	%	 	 	(3,111	)	 	 	-3.1	%	 
	8800 · Repairs &
    Maintenance	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	8825 · Maintenance
    Supplies	 	 	1,072	 	 	 	0.2	%	 	 	139	 	 	 	0.0	%	 	 	933	 	 	 	1.2	%	 	 	132	 	 	 	0.0	%	 	 	940	 	 	 	0.9	%	 
	8826 · Paint Supplies	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 
	8827 · Small Tools
    & Equuipment	 	 	314	 	 	 	0.1	%	 	 	-	 	 	 	0.0	%	 	 	314	 	 	 	0.4	%	 	 	-	 	 	 	0.0	%	 	 	314	 	 	 	0.3	%	 
	8835 · Uniforms	 	 	-	 	 	 	0.0	%	 	 	224	 	 	 	0.1	%	 	 	(224	)	 	 	-0.3	%	 	 	213	 	 	 	0.1	%	 	 	(213	)	 	 	-0.2	%	 
	8850 · Plumbing	 	 	1,265	 	 	 	0.2	%	 	 	153	 	 	 	0.0	%	 	 	1,112	 	 	 	1.4	%	 	 	146	 	 	 	0.0	%	 	 	1,120	 	 	 	1.1	%	 
	8850C · Plumbing -
    construction	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 
	8851·AC/Refrigeration	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 
	8852 · Auto Expense	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	150	 	 	 	0.0	%	 	 	(150	)	 	 	-0.1	%	 
	8853 · Buildings	 	 	90	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	90	 	 	 	0.1	%	 	 	-	 	 	 	0.0	%	 	 	90	 	 	 	0.1	%	 
	8855·Electrical/Mechanical	 	 	211	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	211	 	 	 	0.3	%	 	 	-	 	 	 	0.0	%	 	 	211	 	 	 	0.2	%	 
	8855C · Electrical/Mech - construction	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 
	8856 · Equipment Repair	 	 	46	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	46	 	 	 	0.1	%	 	 	-	 	 	 	0.0	%	 	 	46	 	 	 	0.0	%	 
	8857 · HVAC	 	 	2,014	 	 	 	0.4	%	 	 	-	 	 	 	0.0	%	 	 	2,014	 	 	 	2.6	%	 	 	-	 	 	 	0.0	%	 	 	2,014	 	 	 	2.0	%	 
	8857C · HVAC - construction	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 
	8858 · Grounds	 	 	224	 	 	 	0.0	%	 	 	224	 	 	 	0.1	%	 	 	(1	)	 	 	0.0	%	 	 	214	 	 	 	0.1	%	 	 	10	 	 	 	0.0	%	 
	8859 · Lighting	 	 	275	 	 	 	0.1	%	 	 	-	 	 	 	0.0	%	 	 	275	 	 	 	0.4	%	 	 	-	 	 	 	0.0	%	 	 	275	 	 	 	0.3	%	 
	8861 · Locks &
    Keys	 	 	99	 	 	 	0.0	%	 	 	26	 	 	 	0.0	%	 	 	73	 	 	 	0.1	%	 	 	24	 	 	 	0.0	%	 	 	74	 	 	 	0.1	%	 
	8862 · Pest Control	 	 	772	 	 	 	0.2	%	 	 	207	 	 	 	0.0	%	 	 	565	 	 	 	0.7	%	 	 	198	 	 	 	0.0	%	 	 	575	 	 	 	0.6	%	 
	8864 · Pool & Spa	 	 	134	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	134	 	 	 	0.2	%	 	 	-	 	 	 	0.0	%	 	 	134	 	 	 	0.1	%	 
	8867 · Propane	 	 	242	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	242	 	 	 	0.3	%	 	 	-	 	 	 	0.0	%	 	 	242	 	 	 	0.2	%	 
	8868 · Fire Prevention	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 
	8883 · Service Contracts	 	 	636	 	 	 	0.1	%	 	 	1,094	 	 	 	0.3	%	 	 	(458	)	 	 	-0.6	%	 	 	1,042	 	 	 	0.3	%	 	 	(406	)	 	 	-0.4	%	 
	8885 · Telephone Cell
    & Radio	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 
	8886 · Contract Labor	 	 	-	 	 	 	0.0	%	 	 	158	 	 	 	0.0	%	 	 	(158	)	 	 	-0.2	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 
	8887 · Storage	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 
	8888 · Signage	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 
	8890 · Office Supplies	 	 	34	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	34	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	34	 	 	 	0.0	%	 
	8896 · Business Travel	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 
	8897 · Business Meals	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 
	8899
    · Final Room Prep - Renovated Rms	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 
	Total 8800 · Repairs
    & Maintenance	 	 	7,427	 	 	 	1.4	%	 	 	2,225	 	 	 	0.5	%	 	 	5,202	 	 	 	6.7	%	 	 	2,119	 	 	 	0.5	%	 	 	5,308	 	 	 	5.3	%	 
	Total Expense	 	 	17,721	 	 	 	3.4	%	 	 	12,505	 	 	 	2.9	%	 	 	5,216	 	 	 	6.7	%	 	 	15,524	 	 	 	3.8	%	 	 	2,197	 	 	 	2.2	%	 
	Net Income	 	$	(17,721	)	 	 	-3.4	%	 	$	(12,505	)	 	 	-2.9	%	 	$	(5,216	)	 	 	-6.7	%	 	$	(15,524	)	 	 	-3.8	%	 	$	(2,197	)	 	 	-2.2	%	 

 

	 	 	 	 	 	Budget	 
	 	 	Year to Date	 	 	Full Year	 
	 	 	Actual	 	 	% to

        Revenue
	 	 	Budget	 	 	% to

        Revenue
	 	 	Variance	 	 	% to

        Revenue
	 	 	Prior

        Year
	 	 	% to

        Revenue
	 	 	Variance	 	 	% to

        Revenue
	 	 	Amount	 	 	% to

        Revenue
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Expense	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5000 · Payroll & Benefits	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5888000 · Engineering	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5888150 ·
    Lead Groundsman	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	456	 	 	 	0.1	%	 	 	(456	)	 	 	-0.3	%	 	 	-	 	 	 	0.0	%
	5888160 · Assistant
    Chief Engineer	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	5888180 · Chief Engineer	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	3,038	 	 	 	0.4	%	 	 	(3,038	)	 	 	-2.3	%	 	 	17,868	 	 	 	0.5	%
	5888600 · Groundsmen	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	4,281	 	 	 	0.5	%	 	 	(4,281	)	 	 	-3.2	%	 	 	6,120	 	 	 	0.2	%
	5888700 · Engineer
    I	 	 	-	 	 	 	0.0	%	 	 	30,540	 	 	 	3.4	%	 	 	(30,540	)	 	 	-33.4	%	 	 	19,257	 	 	 	2.3	%	 	 	(19,257	)	 	 	-14.4	%	 	 	41,616	 	 	 	1.1	%
	5888710 · Engineer
    II	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	5888999
    · Engineering Other Pay	 	 	30,540	 	 	 	3.1	%	 	 	-	 	 	 	0.0	%	 	 	30,540	 	 	 	33.4	%	 	 	-	 	 	 	0.0	%	 	 	30,540	 	 	 	22.9	%	 	 	5,680	 	 	 	0.2	%
	Total 5888000 · Engineering	 	 	30,540	 	 	 	3.1	%	 	 	30,540	 	 	 	3.4	%	 	 	-	 	 	 	0.0	%	 	 	27,031	 	 	 	3.2	%	 	 	3,509	 	 	 	2.6	%	 	 	71,284	 	 	 	1.9	%
	5888050 · Engineering Taxes & Benefits	 	 	 	 	 	 	0.0	%	 	 	 	 	 	 	0.0	%	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.0	%	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.0	%
	5851 · Prop Ops Payroll
    Taxes	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	3,102	 	 	 	0.4	%	 	 	(3,102	)	 	 	-2.3	%	 	 	5,421	 	 	 	0.1	%
	5852 · Prop Ops Workers'
    Comp	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	656	 	 	 	0.0	%
	5853 · Prop Ops Employ
    Benefits	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	1,869	 	 	 	0.2	%	 	 	(1,869	)	 	 	-1.4	%	 	 	1,876	 	 	 	0.0	%
	5855 · Prop Ops PTO	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	5856 · Prop Ops Employ
    Meals	 	 	302	 	 	 	0.0	%	 	 	317	 	 	 	0.0	%	 	 	(16	)	 	 	0.0	%	 	 	1,035	 	 	 	0.1	%	 	 	(734	)	 	 	-0.5	%	 	 	2,470	 	 	 	0.1	%
	5857
    · Shared PTO Expense	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	Total 5888050 · Engineering
    Taxes & Benefits	 	 	302	 	 	 	0.0	%	 	 	317	 	 	 	0.0	%	 	 	(16	)	 	 	0.0	%	 	 	6,006	 	 	 	0.7	%	 	 	(5,705	)	 	 	-4.3	%	 	 	10,423	 	 	 	0.3	%
	Total 5000 · Payroll & Benefits	 	 	30,842	 	 	 	3.1	%	 	 	30,857	 	 	 	3.5	%	 	 	(16	)	 	 	0.0	%	 	 	33,038	 	 	 	3.9	%	 	 	(2,196	)	 	 	-1.6	%	 	 	81,707	 	 	 	2.2	%
	8800 · Repairs &
    Maintenance	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	8825 · Maintenance
    Supplies	 	 	2,968	 	 	 	0.3	%	 	 	1,403	 	 	 	0.2	%	 	 	1,565	 	 	 	1.7	%	 	 	3,129	 	 	 	0.4	%	 	 	(161	)	 	 	-0.1	%	 	 	8,648	 	 	 	0.2	%
	8826 · Paint Supplies	 	 	28	 	 	 	0.0	%	 	 	22	 	 	 	0.0	%	 	 	6	 	 	 	0.0	%	 	 	53	 	 	 	0.0	%	 	 	(26	)	 	 	0.0	%	 	 	1,853	 	 	 	0.0	%
	8827 · Small Tools
    & Equuipment	 	 	1,643	 	 	 	0.2	%	 	 	354	 	 	 	0.0	%	 	 	1,289	 	 	 	1.4	%	 	 	25	 	 	 	0.0	%	 	 	1,617	 	 	 	1.2	%	 	 	337	 	 	 	0.0	%
	8835 · Uniforms	 	 	-	 	 	 	0.0	%	 	 	179	 	 	 	0.0	%	 	 	(179	)	 	 	-0.2	%	 	 	416	 	 	 	0.0	%	 	 	(416	)	 	 	-0.3	%	 	 	600	 	 	 	0.0	%
	8850 · Plumbing	 	 	2,054	 	 	 	0.2	%	 	 	414	 	 	 	0.0	%	 	 	1,640	 	 	 	1.8	%	 	 	291	 	 	 	0.0	%	 	 	1,763	 	 	 	1.3	%	 	 	4,323	 	 	 	0.1	%
	8850C · Plumbing -
    construction	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8851·AC/Refrigeration	 	 	45	 	 	 	0.0	%	 	 	45	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	314	 	 	 	0.0	%	 	 	(269	)	 	 	-0.2	%	 	 	570	 	 	 	0.0	%
	8852 · Auto Expense	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	264	 	 	 	0.0	%	 	 	(264	)	 	 	-0.2	%	 	 	179	 	 	 	0.0	%
	8853 · Buildings	 	 	703	 	 	 	0.1	%	 	 	523	 	 	 	0.1	%	 	 	180	 	 	 	0.2	%	 	 	90	 	 	 	0.0	%	 	 	613	 	 	 	0.5	%	 	 	3,432	 	 	 	0.1	%
	8855·Electrical/Mechanical	 	 	1,198	 	 	 	0.1	%	 	 	987	 	 	 	0.1	%	 	 	211	 	 	 	0.2	%	 	 	-	 	 	 	0.0	%	 	 	1,198	 	 	 	0.9	%	 	 	2,470	 	 	 	0.1	%
	8855C · Electrical/Mech - construction	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8856 · Equipment Repair	 	 	358	 	 	 	0.0	%	 	 	124	 	 	 	0.0	%	 	 	234	 	 	 	0.3	%	 	 	696	 	 	 	0.1	%	 	 	(337	)	 	 	-0.3	%	 	 	3,707	 	 	 	0.1	%
	8857 · HVAC	 	 	3,570	 	 	 	0.4	%	 	 	1,233	 	 	 	0.1	%	 	 	2,337	 	 	 	2.6	%	 	 	53	 	 	 	0.0	%	 	 	3,517	 	 	 	2.6	%	 	 	6,181	 	 	 	0.2	%
	8857C · HVAC - construction	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8858 · Grounds	 	 	1,008	 	 	 	0.1	%	 	 	974	 	 	 	0.1	%	 	 	35	 	 	 	0.0	%	 	 	636	 	 	 	0.1	%	 	 	373	 	 	 	0.3	%	 	 	494	 	 	 	0.0	%
	8859 · Lighting	 	 	842	 	 	 	0.1	%	 	 	579	 	 	 	0.1	%	 	 	263	 	 	 	0.3	%	 	 	348	 	 	 	0.0	%	 	 	495	 	 	 	0.4	%	 	 	990	 	 	 	0.0	%
	8861 · Locks &
    Keys	 	 	133	 	 	 	0.0	%	 	 	54	 	 	 	0.0	%	 	 	79	 	 	 	0.1	%	 	 	32	 	 	 	0.0	%	 	 	101	 	 	 	0.1	%	 	 	618	 	 	 	0.0	%
	8862 · Pest Control	 	 	1,035	 	 	 	0.1	%	 	 	820	 	 	 	0.1	%	 	 	216	 	 	 	0.2	%	 	 	1,140	 	 	 	0.1	%	 	 	(105	)	 	 	-0.1	%	 	 	5,940	 	 	 	0.2	%
	8864 · Pool & Spa	 	 	285	 	 	 	0.0	%	 	 	130	 	 	 	0.0	%	 	 	155	 	 	 	0.2	%	 	 	(1,522	)	 	 	-0.2	%	 	 	1,807	 	 	 	1.4	%	 	 	3,600	 	 	 	0.1	%
	8867 · Propane	 	 	584	 	 	 	0.1	%	 	 	-	 	 	 	0.0	%	 	 	584	 	 	 	0.6	%	 	 	112	 	 	 	0.0	%	 	 	472	 	 	 	0.4	%	 	 	-	 	 	 	0.0	%
	8868 · Fire Prevention	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	1,400	 	 	 	0.0	%
	8883 · Service Contracts	 	 	1,176	 	 	 	0.1	%	 	 	2,462	 	 	 	0.3	%	 	 	(1,286	)	 	 	-1.4	%	 	 	2,204	 	 	 	0.3	%	 	 	(1,029	)	 	 	-0.8	%	 	 	5,000	 	 	 	0.1	%
	8885 · Telephone Cell
    & Radio	 	 	39	 	 	 	0.0	%	 	 	179	 	 	 	0.0	%	 	 	(141	)	 	 	-0.2	%	 	 	134	 	 	 	0.0	%	 	 	(95	)	 	 	-0.1	%	 	 	2,760	 	 	 	0.1	%
	8886 · Contract Labor	 	 	208	 	 	 	0.0	%	 	 	485	 	 	 	0.1	%	 	 	(277	)	 	 	-0.3	%	 	 	(75	)	 	 	0.0	%	 	 	283	 	 	 	0.2	%	 	 	1,200	 	 	 	0.0	%
	8887 · Storage	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8888 · Signage	 	 	54	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	54	 	 	 	0.1	%	 	 	-	 	 	 	0.0	%	 	 	54	 	 	 	0.0	%	 	 	248	 	 	 	0.0	%
	8890 · Office Supplies	 	 	156	 	 	 	0.0	%	 	 	11	 	 	 	0.0	%	 	 	145	 	 	 	0.2	%	 	 	10	 	 	 	0.0	%	 	 	146	 	 	 	0.1	%	 	 	400	 	 	 	0.0	%
	8896 · Business Travel	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8897 · Business Meals	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8899
    · Final Room Prep - Renovated Rms	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	Total 8800 · Repairs
    & Maintenance	 	 	18,087	 	 	 	1.8	%	 	 	10,976	 	 	 	1.2	%	 	 	7,111	 	 	 	7.8	%	 	 	8,350	 	 	 	1.0	%	 	 	9,737	 	 	 	7.3	%	 	 	54,950	 	 	 	1.5	%
	Total Expense	 	 	48,929	 	 	 	5.0	%	 	 	41,834	 	 	 	4.7	%	 	 	7,095	 	 	 	7.8	%	 	 	41,388	 	 	 	4.9	%	 	 	7,540	 	 	 	5.7	%	 	 	136,657	 	 	 	3.6	%
	Net Income	 	$	(48,929	)	 	 	-5.0	%	 	$	(41,834	)	 	 	-4.7	%	 	 	(7,095	)	 	 	-7.8	%	 	$	(41,388	)	 	 	-4.9	%	 	$	(7,540	)	 	 	-5.7	%	 	$	(136,657	)	 	 	-3.6	%

 

 

 

 

 

	 	Page 16 of 21	109.2. Ex 18(a)- 2nd Part - Orchards Inn March 13 Issue / R&M - AvB

 

 

    	 	 	 

    	 

     

Orchards Inn & Restaurant,
LLC.

Maintenance Department

January through March 2013

 

	 	 	Jan 13	 	 	Feb 13	 	 	Mar 13	 	 	TOTAL	 
	Ordinary Income/Expense	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Expense	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5000 · Payroll & Benefits	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5888000 · Engineering	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5888999 · Engineering Other Pay	 	 	10,180.00	 	 	 	10,180.00	 	 	 	10,180.00	 	 	 	30,540.00	 
	Total 5888000 · Engineering	 	 	10,180.00	 	 	 	10,180.00	 	 	 	10,180.00	 	 	 	30,540.00	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5888050 · Engineering Taxes & Benefits	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5856 · Prop Ops Employ Meals	 	 	117.26	 	 	 	70.42	 	 	 	114.02	 	 	 	301.70	 
	Total 5888050 · Engineering Taxes & Benefits	 	 	117.26	 	 	 	70.42	 	 	 	114.02	 	 	 	301.70	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total 5000 · Payroll & Benefits	 	 	10,297.26	 	 	 	10,250.42	 	 	 	10,294.02	 	 	 	30,841.70	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	8800 · Repairs & Maintenance	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	8825 · Maintenance Supplies	 	 	460.42	 	 	 	1,435.24	 	 	 	1,072.25	 	 	 	2,967.91	 
	8826 · Paint Supplies	 	 	21.62	 	 	 	6.32	 	 	 	0.00	 	 	 	27.94	 
	8827 · Small Tools & Equuipment	 	 	327.45	 	 	 	1,001.53	 	 	 	313.82	 	 	 	1,642.80	 
	8850 · Plumbing	 	 	261.04	 	 	 	527.65	 	 	 	1,265.49	 	 	 	2,054.18	 
	8851·AC/Refrigeration	 	 	44.89	 	 	 	0.00	 	 	 	0.00	 	 	 	44.89	 
	8853 · Buildings	 	 	522.69	 	 	 	90.00	 	 	 	90.00	 	 	 	702.69	 
	8855·Electrical/Mechanical	 	 	986.57	 	 	 	0.00	 	 	 	211.33	 	 	 	1,197.90	 
	8856 · Equipment Repair	 	 	0.00	 	 	 	312.90	 	 	 	45.50	 	 	 	358.40	 
	8857 · HVAC	 	 	1,233.18	 	 	 	322.98	 	 	 	2,013.61	 	 	 	3,569.77	 
	8858 · Grounds	 	 	594.27	 	 	 	190.50	 	 	 	223.52	 	 	 	1,008.29	 
	8859 · Lighting	 	 	429.55	 	 	 	137.57	 	 	 	275.00	 	 	 	842.12	 
	8861 · Locks & Keys	 	 	24.88	 	 	 	9.30	 	 	 	98.58	 	 	 	132.76	 
	8862 · Pest Control	 	 	0.00	 	 	 	263.20	 	 	 	772.24	 	 	 	1,035.44	 
	8864 · Pool & Spa	 	 	130.19	 	 	 	21.59	 	 	 	133.50	 	 	 	285.28	 
	8867 · Propane	 	 	275.16	 	 	 	66.44	 	 	 	242.21	 	 	 	583.81	 
	8883 · Service Contracts	 	 	540.00	 	 	 	0.00	 	 	 	635.74	 	 	 	1,175.74	 
	8885 · Telephone Cell & Radio	 	 	38.64	 	 	 	0.00	 	 	 	0.00	 	 	 	38.64	 
	8886 · Contract Labor	 	 	0.00	 	 	 	207.92	 	 	 	0.00	 	 	 	207.92	 
	8888 · Signage	 	 	0.00	 	 	 	54.26	 	 	 	0.00	 	 	 	54.26	 
	8890 · Office Supplies	 	 	0.00	 	 	 	122.36	 	 	 	33.91	 	 	 	156.27	 
	Total 8800 · Repairs & Maintenance	 	 	5,890.55	 	 	 	4,769.76	 	 	 	7,426.70	 	 	 	18,087.01	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Expense	 	 	16,187.81	 	 	 	15,020.18	 	 	 	17,720.72	 	 	 	48,928.71	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Net Ordinary Income	 	 	-16,187.81	 	 	 	-15,020.18	 	 	 	-17,720.72	 	 	 	-48,928.71	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Net Income	 	 	-16,187.81	 	 	 	-15,020.18	 	 	 	-17,720.72	 	 	 	-48,928.71	 

 

 

	 	Page 17 of 21	109.2. Ex 18(a)- 2nd Part - Orchards Inn March 13 Issue / R&M

 

 

    	 	 	 

    	 

     

Orchards Inn and Restaurant

Utilities Department

Actual vs. Budget and Prior Year

March 2013

 

	 	 	 	 	 
	 	 	Current Month	 	 
	 	 	Actual	 	 	% to

        Revenue
	 	 	Budget	 	 	% to

        Revenue
	 	 	Variance	 	 	% to

        Revenue
	 	 	Prior

        Year
	 	 	% to

        Revenue
	 	 	Variance	 	 	% to

        Revenue
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Expense	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	8500 · Utilities	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	8501 · Gas	 	 	2,740	 	 	 	0.5	%	 	 	3,162	 	 	 	0.7	%	 	 	(423	)	 	 	-0.5	%	 	 	3,012	 	 	 	0.7	%	 	 	(272	)	 	 	-0.3	%	 
	8502 · Electricity	 	 	3,752	 	 	 	0.7	%	 	 	5,367	 	 	 	1.2	%	 	 	(1,614	)	 	 	-2.1	%	 	 	5,111	 	 	 	1.2	%	 	 	(1,359	)	 	 	-1.4	%	 
	8503 · Water	 	 	1,409	 	 	 	0.3	%	 	 	1,756	 	 	 	0.4	%	 	 	(347	)	 	 	-0.4	%	 	 	1,672	 	 	 	0.4	%	 	 	(263	)	 	 	-0.3	%	 
	8504 · Sewer	 	 	2,928	 	 	 	0.6	%	 	 	2,796	 	 	 	0.6	%	 	 	132	 	 	 	0.2	%	 	 	2,663	 	 	 	0.6	%	 	 	265	 	 	 	0.3	%	 
	8866
    · Trash Removal	 	 	568	 	 	 	0.1	%	 	 	530	 	 	 	0.1	%	 	 	38	 	 	 	0.0	%	 	 	505	 	 	 	0.1	%	 	 	63	 	 	 	0.1	%	 
	Total
    8500 · Utilities	 	 	11,397	 	 	 	2.2	%	 	 	13,610	 	 	 	3.1	%	 	 	(2,214	)	 	 	-2.8	%	 	 	12,962	 	 	 	3.1	%	 	 	(1,565	)	 	 	-1.6	%	 
	Total Expense	 	 	11,397	 	 	 	2.2	%	 	 	13,610	 	 	 	3.1	%	 	 	(2,214	)	 	 	-2.8	%	 	 	12,962	 	 	 	3.1	%	 	 	(1,565	)	 	 	-1.6	%	 
	Net Income	 	$	(11,397	)	 	 	-2.2	%	 	$	(13,610	)	 	 	-3.1	%	 	$	2,214	 	 	 	2.8	%	 	$	(12,962	)	 	 	-3.1	%	 	$	1,565	 	 	 	1.6	%	 

 

	 	 	 	 	 	Budget	 
	 	 	Year to Date	 	 	Full Year	 
	 	 	Actual	 	 	% to

        Revenue
	 	 	Budget	 	 	% to

        Revenue
	 	 	Variance	 	 	% to

        Revenue
	 	 	Prior

        Year
	 	 	% to

        Revenue
	 	 	Variance	 	 	% to

        Revenue
	 	 	Amount	 	 	% to

        Revenue
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Expense	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	8500 · Utilities	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	8501 · Gas	 	 	9,386	 	 	 	1.0	%	 	 	10,614	 	 	 	1.2	%	 	 	(1,228	)	 	 	-1.3	%	 	 	10,122	 	 	 	1.2	%	 	 	(736	)	 	 	-0.6	%	 	 	32,100	 	 	 	0.9	%
	8502 · Electricity	 	 	14,325	 	 	 	1.5	%	 	 	15,750	 	 	 	1.8	%	 	 	(1,425	)	 	 	-1.6	%	 	 	14,754	 	 	 	1.7	%	 	 	(429	)	 	 	-0.3	%	 	 	62,500	 	 	 	1.7	%
	8503 · Water	 	 	1,603	 	 	 	0.2	%	 	 	4,168	 	 	 	0.5	%	 	 	(2,566	)	 	 	-2.8	%	 	 	4,375	 	 	 	0.5	%	 	 	(2,772	)	 	 	-2.1	%	 	 	8,100	 	 	 	0.2	%
	8504 · Sewer	 	 	8,795	 	 	 	0.9	%	 	 	8,531	 	 	 	1.0	%	 	 	264	 	 	 	0.3	%	 	 	7,988	 	 	 	0.9	%	 	 	807	 	 	 	0.6	%	 	 	21,420	 	 	 	0.6	%
	8866
    · Trash Removal	 	 	1,701	 	 	 	0.2	%	 	 	1,668	 	 	 	0.2	%	 	 	33	 	 	 	0.0	%	 	 	1,568	 	 	 	0.2	%	 	 	133	 	 	 	0.1	%	 	 	-	 	 	 	0.0	%
	Total
    8500 · Utilities	 	 	35,810	 	 	 	3.6	%	 	 	40,731	 	 	 	4.6	%	 	 	(4,921	)	 	 	-5.4	%	 	 	38,807	 	 	 	4.6	%	 	 	(2,997	)	 	 	-2.2	%	 	 	124,120	 	 	 	3.3	%
	Total Expense	 	 	35,810	 	 	 	3.6	%	 	 	40,731	 	 	 	4.6	%	 	 	(4,921	)	 	 	-5.4	%	 	 	38,807	 	 	 	4.6	%	 	 	(2,997	)	 	 	-2.2	%	 	 	124,120	 	 	 	3.3	%
	Net Income	 	$	(35,810	)	 	 	-3.6	%	 	$	(40,731	)	 	 	-4.6	%	 	$	4,921	 	 	 	5.4	%	 	$	(38,807	)	 	 	-4.6	%	 	$	2,997	 	 	 	2.2	%	 	$	(124,120	)	 	 	-3.3	%

 

 

 

 

	 	Page 18 of 21	109.2. Ex 18(a)- 2nd Part - Orchards Inn March 13 Issue / Utilities - AvB

 

 

    	 	 	 

    	 

     

Orchards Inn & Restaurant,
LLC.

Utilities Department

January through March 2013

 

	 	 	Jan 13	 	 	Feb 13	 	 	Mar 13	 	 	TOTAL	 
	Ordinary Income/Expense	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Expense	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	8500 · Utilities	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	8501 · Gas	 	 	4,153.69	 	 	 	2,492.36	 	 	 	2,739.91	 	 	 	9,385.96	 
	8502 · Electricity	 	 	5,382.59	 	 	 	5,190.58	 	 	 	3,752.27	 	 	 	14,325.44	 
	8503 · Water	 	 	977.26	 	 	 	-783.25	 	 	 	1,408.57	 	 	 	1,602.58	 
	8504 · Sewer	 	 	2,939.51	 	 	 	2,927.78	 	 	 	2,927.66	 	 	 	8,794.95	 
	8866 · Trash Removal	 	 	562.16	 	 	 	570.92	 	 	 	568.11	 	 	 	1,701.19	 
	Total 8500 · Utilities	 	 	14,015.21	 	 	 	10,398.39	 	 	 	11,396.52	 	 	 	35,810.12	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Expense	 	 	14,015.21	 	 	 	10,398.39	 	 	 	11,396.52	 	 	 	35,810.12	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Net Ordinary Income	 	 	-14,015.21	 	 	 	-10,398.39	 	 	 	-11,396.52	 	 	 	-35,810.12	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Net Income	 	 	-14,015.21	 	 	 	-10,398.39	 	 	 	-11,396.52	 	 	 	-35,810.12	 

 

 

	 	Page 19 of 21	109.2. Ex 18(a)- 2nd Part - Orchards Inn March 13 Issue / Utilities

 

 

    	 	 	 

    	 

     

Orchards Inn and Restaurant

Fixed Expense Department

(Excluding Loan Interest)

Actual vs. Budget and Prior Year

March 2013

 

	 	 	 	 	 
	 	 	Current Month	 	 
	 	 	Actual	 	 	% to

        Revenue
	 	 	Budget	 	 	% to

        Revenue
	 	 	Variance	 	 	% to

        Revenue
	 	 	Prior

        Year
	 	 	% to

        Revenue
	 	 	Variance	 	 	% to

        Revenue
	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Expense	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9100 · Fixed Expenses	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9101 ·
    Property Taxes	 	 	3,858	 	 	 	0.8	%	 	 	3,858	 	 	 	0.9	%	 	 	-	 	 	 	0.0	%	 	 	5,469	 	 	 	1.3	%	 	 	(1,611	)	 	 	-1.6	%	 
	9102 · Rent	 	 	4,009	 	 	 	0.8	%	 	 	4,114	 	 	 	0.9	%	 	 	(105	)	 	 	-0.1	%	 	 	1,464	 	 	 	0.4	%	 	 	2,545	 	 	 	2.5	%	 
	9103 · Personal Property
    Tax	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	200	 	 	 	0.0	%	 	 	(200	)	 	 	-0.2	%	 
	9104 · Insurance	 	 	2,678	 	 	 	0.5	%	 	 	2,678	 	 	 	0.6	%	 	 	-	 	 	 	0.0	%	 	 	2,167	 	 	 	0.5	%	 	 	511	 	 	 	0.5	%	 
	Total 9100 · Fixed
    Expenses	 	 	10,545	 	 	 	2.1	%	 	 	10,650	 	 	 	2.4	%	 	 	(105	)	 	 	-0.1	%	 	 	9,299	 	 	 	2.3	%	 	 	1,245	 	 	 	1.2	%	 
	Net Income	 	$	(10,545	)	 	 	-2.1	%	 	$	(10,650	)	 	 	-2.4	%	 	$	105	 	 	 	0.1	%	 	$	(9,299	)	 	 	-2.3	%	 	$	(1,245	)	 	 	-1.2	%	 

 

	 	 	 	 	 	Budget	 
	 	 	Year to Date	 	 	Full Year	 
	 	 	Actual	 	 	% to

        Revenue
	 	 	Budget	 	 	% to

        Revenue
	 	 	Variance	 	 	% to

        Revenue
	 	 	Prior

        Year
	 	 	% to

        Revenue
	 	 	Variance	 	 	% to

        Revenue
	 	 	Amount	 	 	% to

        Revenue
	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Expense	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9100 · Fixed Expenses	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9101 ·
    Property Taxes	 	 	11,574	 	 	 	1.2	%	 	 	11,574	 	 	 	1.3	%	 	 	-	 	 	 	0.0	%	 	 	16,407	 	 	 	1.9	%	 	 	(4,833	)	 	 	-3.6	%	 	 	42,000	 	 	 	1.1	%
	9102 · Rent	 	 	12,237	 	 	 	1.2	%	 	 	12,342	 	 	 	1.4	%	 	 	(105	)	 	 	-0.1	%	 	 	2,404	 	 	 	0.3	%	 	 	9,832	 	 	 	7.4	%	 	 	-	 	 	 	0.0	%
	9103 · Personal Property
    Tax	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	600	 	 	 	0.1	%	 	 	(600	)	 	 	-0.4	%	 	 	1,800	 	 	 	0.0	%
	9104 · Insurance	 	 	8,034	 	 	 	0.8	%	 	 	8,034	 	 	 	0.9	%	 	 	-	 	 	 	0.0	%	 	 	6,500	 	 	 	0.8	%	 	 	1,534	 	 	 	1.1	%	 	 	25,200	 	 	 	0.7	%
	Total 9100 · Fixed
    Expenses	 	 	31,845	 	 	 	3.2	%	 	 	31,950	 	 	 	3.6	%	 	 	(105	)	 	 	-0.1	%	 	 	25,911	 	 	 	3.1	%	 	 	5,933	 	 	 	4.4	%	 	 	69,000	 	 	 	1.8	%
	Net Income	 	$	(31,845	)	 	 	-3.2	%	 	$	(31,950	)	 	 	-3.6	%	 	$	105	 	 	 	0.1	%	 	$	(25,911	)	 	 	-3.1	%	 	$	(5,933	)	 	 	-4.4	%	 	$	(69,000	)	 	 	-1.8	%

 

 

 

 

	 	Page 20 of 21	109.2. Ex 18(a)- 2nd Part - Orchards Inn March 13 Issue / Fixed - AvB

 

 

    	 	 	 

    	 

     

	7:20 PM	Orchards Inn & Restaurant, LLC.	 
	05/10/12	Fixed Expenses	 
	Accrual Basis	January through March 2013	 

 

	 	 	Jan 13	 	 	Feb 13	 	 	Mar 13	 	 	TOTAL	 
	Other Income/Expense	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Other Expense	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9100 · Fixed Expenses	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9101 · Property Taxes	 	 	3,858.11	 	 	 	3,858.11	 	 	 	3,858.11	 	 	 	11,574.33	 
	9102 · Rent	 	 	4,113.89	 	 	 	4,113.89	 	 	 	4,008.72	 	 	 	12,236.50	 
	9104 · Insurance	 	 	2,677.98	 	 	 	2,677.98	 	 	 	2,677.98	 	 	 	8,033.94	 
	Total 9100 · Fixed Expenses	 	 	10,649.98	 	 	 	10,649.98	 	 	 	10,544.81	 	 	 	31,844.77	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Other Expense	 	 	10,649.98	 	 	 	10,649.98	 	 	 	10,544.81	 	 	 	31,844.77	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Net Other Income	 	 	-10,649.98	 	 	 	-10,649.98	 	 	 	-10,544.81	 	 	 	-31,844.77	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Net Income	 	 	-10,649.98	 	 	 	-10,649.98	 	 	 	-10,544.81	 	 	 	-31,844.77	 

 

 

	 	Page 21 of 21	 

 

 

    	 	 	 

    	 

     

 

 

Orchards Annex

Profit and Loss Statement

March 2013

 

	 	 	 	 	 	 
	 	 	 	Current
    Month	 	 	 
	 	 	 	Actual	 	 	%
                                                                                                                                                                                                                                                                                     to
                                                                                                                                                                                                                                                                                     
Revenue	 	 	Budget	 	 	%
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              to
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
Revenue	 	 	Variance	 	 	%
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              to
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
Revenue	 	 	Prior
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Year	 	 	%
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              to
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
Revenue	 	 	Variance	 	 	%
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              to
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
Revenue	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	Rooms
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Available	 	 	868	 	 	 	 	 	 	 	868	 	 	 	 	 	 	 	0	 	 	 	 	 	 	 	868	 	 	 	 	 	 	 	0	 	 	 	 	 	 
	 	Occupied
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Rooms	 	 	762	 	 	 	 	 	 	 	712	 	 	 	 	 	 	 	50	 	 	 	 	 	 	 	709	 	 	 	 	 	 	 	53	 	 	 	 	 	 
	 	Occupancy	 	 	87.8	%	 	 	 	 	 	 	82.0	%	 	 	 	 	 	 	7.0	%	 	 	 	 	 	 	81.7	%	 	 	 	 	 	 	7.5	%	 	 	 	 	 
	 	Average
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Daily
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Rate
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              (ADR)	 	$	183.16	 	 	 	 	 	 	$	185.00	 	 	 	 	 	 	($	1.84	)	 	 	 	 	 	$	170.19	 	 	 	 	 	 	$	12.97	 	 	 	 	 	 
	 	Revenue/Available
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Room
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              (REVPAR)	 	$	160.79	 	 	 	 	 	 	$	151.75	 	 	 	 	 	 	$	9.04	 	 	 	 	 	 	$	139.01	 	 	 	 	 	 	$	21.78	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	Revenues	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	Rooms	 	 	139,565	 	 	 	100.0	%	 	 	131,720	 	 	 	100.0	%	 	 	7,845	 	 	 	100.0	%	 	 	120,662	 	 	 	100.0	%	 	 	18,904	 	 	 	100.0	%	 
	 	Food
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              &
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Beverage	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 
	 	Miscellaneous	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 
	 	Total
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Revenues	 	 	139,565	 	 	 	100.0	%	 	 	131,720	 	 	 	100.0	%	 	 	7,845	 	 	 	100.0	%	 	 	120,662	 	 	 	100.0	%	 	 	18,904	 	 	 	100.0	%	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	Department
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Expenses	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	Rooms	 	 	52,909	 	 	 	37.9	%	 	 	39,591	 	 	 	30.1	%	 	 	13,318	 	 	 	169.8	%	 	 	36,844	 	 	 	30.5	%	 	 	16,065	 	 	 	85.0	%	 
	 	Food
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              &
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Beverage	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 
	 	Miscellaneous	 	 	339	 	 	 	0.2	%	 	 	497	 	 	 	0.4	%	 	 	(158	)	 	 	0.0	%	 	 	482	 	 	 	0.4	%	 	 	(143	)	 	 	0.0	%	 
	 	Total
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Department
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Expenses	 	 	53,248	 	 	 	38.2	%	 	 	40,088	 	 	 	30.4	%	 	 	13,160	 	 	 	167.7	%	 	 	37,327	 	 	 	30.9	%	 	 	15,922	 	 	 	84.2	%	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	Departmental
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Profit	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	Rooms	 	 	86,656	 	 	 	62.1	%	 	 	92,129	 	 	 	69.9	%	 	 	(5,473	)	 	 	-69.8	%	 	 	83,817	 	 	 	69.5	%	 	 	2,839	 	 	 	15.0	%	 
	 	Food
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              &
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Beverage	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 
	 	Miscellaneous	 	 	(339	)	 	 	-0.2	%	 	 	(497	)	 	 	-0.4	%	 	 	158	 	 	 	0.0	%	 	 	(482	)	 	 	-0.4	%	 	 	143	 	 	 	0.0	%	 
	 	Total
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Departmental
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Profit	 	 	86,317	 	 	 	61.8	%	 	 	91,632	 	 	 	69.6	%	 	 	(5,315	)	 	 	-67.7	%	 	 	83,335	 	 	 	69.1	%	 	 	2,982	 	 	 	15.8	%	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	Undistributed
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Expenses	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	Management
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Fees	 	 	4,186	 	 	 	3.0	%	 	 	3,952	 	 	 	3.0	%	 	 	234	 	 	 	3.0	%	 	 	2,413	 	 	 	2.0	%	 	 	1,773	 	 	 	9.4	%	 
	 	Administrative
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              &
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              General	 	 	12,148	 	 	 	8.7	%	 	 	19,049	 	 	 	14.5	%	 	 	(6,901	)	 	 	-88.0	%	 	 	21,039	 	 	 	17.4	%	 	 	(8,890	)	 	 	-47.0	%	 
	 	Sales
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              &
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Marketing	 	 	236	 	 	 	0.2	%	 	 	3,303	 	 	 	2.5	%	 	 	(3,067	)	 	 	-39.1	%	 	 	3,158	 	 	 	2.6	%	 	 	(2,923	)	 	 	-15.5	%	 
	 	Engineering	 	 	7,580	 	 	 	5.4	%	 	 	6,970	 	 	 	5.3	%	 	 	610	 	 	 	7.8	%	 	 	13,765	 	 	 	11.4	%	 	 	(6,185	)	 	 	-32.7	%	 
	 	Utilities	 	 	3,660	 	 	 	2.6	%	 	 	4,905	 	 	 	3.7	%	 	 	(1,245	)	 	 	-15.9	%	 	 	4,672	 	 	 	3.9	%	 	 	(1,012	)	 	 	-5.4	%	 
	 	Total
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Undistributed
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Expenses	 	 	27,810	 	 	 	19.9	%	 	 	38,179	 	 	 	29.0	%	 	 	(10,369	)	 	 	-132.2	%	 	 	45,047	 	 	 	37.3	%	 	 	(17,237	)	 	 	-91.2	%	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	Gross
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Operating
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Profit	 	 	58,507	 	 	 	41.9	%	 	 	53,453	 	 	 	40.6	%	 	 	5,054	 	 	 	64.4	%	 	 	38,288	 	 	 	31.7	%	 	 	20,219	 	 	 	107.0	%	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	Fixed
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Expenses	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	Property
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Taxes	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 
	 	Leases
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              (Rent)	 	 	41,243	 	 	 	29.6	%	 	 	41,130	 	 	 	31.2	%	 	 	113	 	 	 	1.4	%	 	 	26,777	 	 	 	22.2	%	 	 	14,467	 	 	 	76.5	%	 
	 	Insurance	 	 	1,854	 	 	 	1.3	%	 	 	1,854	 	 	 	1.4	%	 	 	(0	)	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	1,854	 	 	 	9.8	%	 
	 	Total
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Fixed
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Expenses	 	 	43,097	 	 	 	30.9	%	 	 	42,984	 	 	 	32.6	%	 	 	113	 	 	 	1.4	%	 	 	26,777	 	 	 	22.2	%	 	 	16,321	 	 	 	86.3	%	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	Income
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Before
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Reserves	 	 	15,410	 	 	 	11.0	%	 	 	10,469	 	 	 	7.9	%	 	 	4,941	 	 	 	63.0	%	 	 	11,511	 	 	 	9.5	%	 	 	3,898	 	 	 	20.6	%	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.0	%	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.0	%	 
	 	Reserve
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              for
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Replacement	 	 	5,583	 	 	 	4.0	%	 	 	5,269	 	 	 	4.0	%	 	 	314	 	 	 	4.0	%	 	 	4,826	 	 	 	4.0	%	 	 	756	 	 	 	4.0	%	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.0	%	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.0	%	 
	 	Net
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Operating
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Income	 	 	9,827	 	 	 	7.0	%	 	 	5,200	 	 	 	3.9	%	 	 	4,627	 	 	 	59.0	%	 	 	6,685	 	 	 	5.5	%	 	 	3,142	 	 	 	16.6	%	 

 

	 	 	 	 	 	Budget	 
	 	 	Year
                                                                                                                                    to
                                                                                                                                    Date	 	 	Full
                                                                                                                                                                                                                                                                                                                                                                                                                                               Year	 
	 	 	Actual	 	 	%
                                                                                                                                                                                                                                                                                                                                                                                                to
                                                                                                                                                                                                                                                                                                                                                                                                
Revenue	 	 	Budget	 	 	%
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              to
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
Revenue	 	 	Variance	 	 	%
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              to
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
Revenue	 	 	Prior
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Year	 	 	%
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              to
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
Revenue	 	 	Variance	 	 	%
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              to
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
Revenue	 	 	Amount	 	 	%	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Rooms
    Available	 	 	2,520	 	 	 	 	 	 	 	2,520	 	 	 	 	 	 	 	0	 	 	 	 	 	 	 	2,848	 	 	 	 	 	 	 	(328	)	 	 	 	 	 	 	10,220	 	 	 	 	 
	Occupied Rooms	 	 	1,661	 	 	 	 	 	 	 	1,595	 	 	 	 	 	 	 	66	 	 	 	 	 	 	 	1,595	 	 	 	 	 	 	 	66	 	 	 	 	 	 	 	7,128	 	 	 	 	 
	Occupancy	 	 	65.9	%	 	 	 	 	 	 	63.3	%	 	 	 	 	 	 	4.1	%	 	 	 	 	 	 	56.0	%	 	 	 	 	 	 	4.1	%	 	 	 	 	 	 	69.7	%	 	 	 	 
	Average
    Daily Rate (ADR)	 	$	156.65	 	 	 	 	 	 	$	159.54	 	 	 	 	 	 	($	2.89	)	 	 	 	 	 	$	148.56	 	 	 	 	 	 	$	8.09	 	 	 	 	 	 	$	150.76	 	 	 	 	 
	Revenue/Available
    Room (REVPAR)	 	$	103.25	 	 	 	 	 	 	$	100.98	 	 	 	 	 	 	$	2.27	 	 	 	 	 	 	$	83.20	 	 	 	 	 	 	$	20.05	 	 	 	 	 	 	$	105.15	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Revenues	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Rooms	 	 	260,192	 	 	 	100.0	%	 	 	254,470	 	 	 	100.0	%	 	 	5,722	 	 	 	100.0	%	 	 	236,947	 	 	 	100.0	%	 	 	23,245	 	 	 	100.0	%	 	 	1,074,584	 	 	 	100.0	%
	Food & Beverage	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	Miscellaneous	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	Total Revenues	 	 	260,192	 	 	 	100.0	%	 	 	254,470	 	 	 	100.0	%	 	 	5,722	 	 	 	100.0	%	 	 	236,947	 	 	 	100.0	%	 	 	23,245	 	 	 	100.0	%	 	 	1,074,584	 	 	 	100.0	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Department Expenses	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Rooms	 	 	119,704	 	 	 	46.0	%	 	 	110,079	 	 	 	43.3	%	 	 	9,625	 	 	 	168.2	%	 	 	105,637	 	 	 	44.6	%	 	 	14,067	 	 	 	60.5	%	 	 	366,250	 	 	 	34.1	%
	Food & Beverage	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	Miscellaneous	 	 	939	 	 	 	0.4	%	 	 	1,281	 	 	 	0.5	%	 	 	(342	)	 	 	0.0	%	 	 	1,576	 	 	 	0.7	%	 	 	(637	)	 	 	0.0	%	 	 	5,316	 	 	 	0.0	%
	Total Department Expenses	 	 	120,644	 	 	 	46.4	%	 	 	111,360	 	 	 	43.8	%	 	 	9,284	 	 	 	162.3	%	 	 	107,213	 	 	 	45.2	%	 	 	13,430	 	 	 	57.8	%	 	 	371,566	 	 	 	34.6	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Departmental
    Profit	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Rooms	 	 	140,487	 	 	 	54.0	%	 	 	144,391	 	 	 	56.7	%	 	 	(3,904	)	 	 	-68.2	%	 	 	131,309	 	 	 	55.4	%	 	 	9,178	 	 	 	39.5	%	 	 	708,334	 	 	 	65.9	%
	Food & Beverage	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	Miscellaneous	 	 	(939	)	 	 	-0.4	%	 	 	(1,281	)	 	 	-0.5	%	 	 	342	 	 	 	0.0	%	 	 	(1,576	)	 	 	-0.7	%	 	 	637	 	 	 	0.0	%	 	 	(5,316	)	 	 	0.0	%
	Total Departmental Profit	 	 	139,548	 	 	 	53.6	%	 	 	143,110	 	 	 	56.2	%	 	 	(3,562	)	 	 	-62.3	%	 	 	129,733	 	 	 	54.8	%	 	 	9,815	 	 	 	42.2	%	 	 	703,018	 	 	 	65.4	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Undistributed
    Expenses	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Management Fees	 	 	7,805	 	 	 	3.0	%	 	 	7,635	 	 	 	3.0	%	 	 	170	 	 	 	3.0	%	 	 	4,739	 	 	 	2.0	%	 	 	3,066	 	 	 	13.2	%	 	 	21,492	 	 	 	2.0	%
	Administrative & General	 	 	36,299	 	 	 	14.0	%	 	 	41,910	 	 	 	16.5	%	 	 	(5,611	)	 	 	-98.1	%	 	 	49,551	 	 	 	20.9	%	 	 	(13,252	)	 	 	-57.0	%	 	 	140,555	 	 	 	13.1	%
	Sales & Marketing	 	 	917	 	 	 	0.4	%	 	 	4,368	 	 	 	1.7	%	 	 	(3,451	)	 	 	-60.3	%	 	 	5,519	 	 	 	2.3	%	 	 	(4,602	)	 	 	-19.8	%	 	 	30,263	 	 	 	2.8	%
	Engineering	 	 	23,216	 	 	 	8.9	%	 	 	22,939	 	 	 	9.0	%	 	 	277	 	 	 	4.8	%	 	 	32,616	 	 	 	13.8	%	 	 	(9,400	)	 	 	-40.4	%	 	 	117,672	 	 	 	11.0	%
	Utilities	 	 	14,232	 	 	 	5.5	%	 	 	14,800	 	 	 	5.8	%	 	 	(568	)	 	 	-9.9	%	 	 	15,222	 	 	 	6.4	%	 	 	(990	)	 	 	-4.3	%	 	 	79,600	 	 	 	7.4	%
	Total Undistributed
    Expenses	 	 	82,468	 	 	 	31.7	%	 	 	91,652	 	 	 	36.0	%	 	 	(9,184	)	 	 	-160.5	%	 	 	107,647	 	 	 	45.4	%	 	 	(25,178	)	 	 	-108.3	%	 	 	389,582	 	 	 	36.3	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Gross Operating
    Profit	 	 	57,080	 	 	 	21.9	%	 	 	51,458	 	 	 	20.2	%	 	 	5,622	 	 	 	98.3	%	 	 	22,087	 	 	 	9.3	%	 	 	34,993	 	 	 	150.5	%	 	 	313,436	 	 	 	29.2	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Fixed Expenses	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Property Taxes	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	Leases (Rent)	 	 	44,003	 	 	 	16.9	%	 	 	43,890	 	 	 	17.2	%	 	 	113	 	 	 	2.0	%	 	 	31,317	 	 	 	13.2	%	 	 	12,686	 	 	 	54.6	%	 	 	268,688	 	 	 	25.0	%
	Insurance	 	 	5,562	 	 	 	2.1	%	 	 	5,562	 	 	 	2.2	%	 	 	(0	)	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	5,562	 	 	 	23.9	%	 	 	-	 	 	 	0.0	%
	Total Fixed
    Expenses	 	 	49,565	 	 	 	19.0	%	 	 	49,452	 	 	 	19.4	%	 	 	113	 	 	 	2.0	%	 	 	31,317	 	 	 	13.2	%	 	 	18,248	 	 	 	78.5	%	 	 	268,688	 	 	 	25.0	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Income Before
    Reserves	 	 	7,515	 	 	 	2.9	%	 	 	2,006	 	 	 	0.8	%	 	 	5,509	 	 	 	96.3	%	 	 	(9,230	)	 	 	-3.9	%	 	 	16,745	 	 	 	72.0	%	 	 	44,748	 	 	 	4.2	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.0	%	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.0	%	 	 	 	 	 	 	 	 
	Reserve for Replacement	 	 	10,408	 	 	 	4.0	%	 	 	10,179	 	 	 	4.0	%	 	 	229	 	 	 	4.0	%	 	 	9,478	 	 	 	4.0	%	 	 	930	 	 	 	4.0	%	 	 	42,983	 	 	 	4.0	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.0	%	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.0	%	 	 	 	 	 	 	 	 
	Net
    Operating Income	 	 	(2,893	)	 	 	-1.1	%	 	 	(8,173	)	 	 	-3.2	%	 	 	5,280	 	 	 	92.3	%	 	 	(18,708	)	 	 	-7.9	%	 	 	15,815	 	 	 	68.0	%	 	 	1,765	 	 	 	0.2	%

 

 

 

 

	 	Page 1 of 19	109.3. Ex 18(a)- 3rd Part - Orchards Annex March 13 Issue / Report

 

 

    	 

    	 

     

 

Orchards Annex

Current Year Actual

2012

 

 

 

	Current Year - 2013	 
	 	 
	Year to Date	 

 

	 	 	January	 	 	February	 	 	February	 	 	Total Year	 
	 	 	Amount	 	 	POR	 	 	Amount	 	 	POR	 	 	Amount	 	 	POR	 	 	Amount	 	 	POR	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Rooms Available	 	 	868	 	 	 	 	 	 	 	784	 	 	 	 	 	 	 	868	 	 	 	 	 	 	 	2,520	 	 	 	 	 
	Occupied Rooms	 	 	405	 	 	 	 	 	 	 	494	 	 	 	 	 	 	 	762	 	 	 	 	 	 	 	1,661	 	 	 	 	 
	Occupancy	 	 	46.7	%	 	 	 	 	 	 	63.0	%	 	 	 	 	 	 	87.8	%	 	 	 	 	 	 	65.9	%	 	 	 	 
	Average Daily Rate (ADR)	 	$	126.05	 	 	 	 	 	 	$	140.84	 	 	 	 	 	 	$	183.16	 	 	 	 	 	 	$	156.65	 	 	 	 	 
	Revenue/Available Room (REVPAR)	 	$	58.81	 	 	 	 	 	 	$	88.74	 	 	 	 	 	 	$	160.79	 	 	 	 	 	 	$	103.25	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Revenues	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Rooms	 	$	51,050	 	 	$	183.47	 	 	$	69,576	 	 	$	140.84	 	 	$	139,565	 	 	$	183.16	 	 	 	260,192	 	 	$	156.65	 
	Food & Beverage	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	 	0	 	 	$	-	 
	Miscellaneous	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	 	0	 	 	$	-	 
	Total Revenues	 	$	51,050	 	 	$	183.47	 	 	$	69,576	 	 	$	140.84	 	 	$	139,565	 	 	$	183.16	 	 	 	260,192	 	 	$	156.65	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Department Expenses	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Rooms	 	$	31,350	 	 	$	72.22	 	 	$	35,445	 	 	$	71.75	 	 	$	52,909	 	 	$	69.43	 	 	 	119,704	 	 	$	72.07	 
	Food & Beverage	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	 	0	 	 	$	-	 
	Miscellaneous	 	$	284	 	 	$	0.85	 	 	$	316	 	 	$	0.64	 	 	$	339	 	 	$	0.45	 	 	 	939	 	 	$	0.57	 
	Total Department Expenses	 	$	31,634	 	 	$	73.07	 	 	$	35,761	 	 	$	72.39	 	 	$	53,248	 	 	$	69.88	 	 	 	120,644	 	 	$	72.63	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Departmental Profit	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Rooms	 	$	19,700	 	 	$	111.25	 	 	$	34,131	 	 	$	69.09	 	 	$	86,656	 	 	$	113.72	 	 	 	140,487	 	 	$	84.58	 
	Food & Beverage	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	 	0	 	 	$	-	 
	Miscellaneous	 	$	(284	)	 	$	(0.85	)	 	$	(316	)	 	$	(0.64	)	 	$	(339	)	 	$	(0.45	)	 	 	(939	)	 	$	(0.57	)
	Total Departmental Profit	 	$	19,416	 	 	$	110.40	 	 	$	33,815	 	 	$	68.45	 	 	$	86,317	 	 	$	113.28	 	 	 	139,548	 	 	$	84.01	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Undistributed Expenses	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Management Fees	 	$	1,532	 	 	$	5.50	 	 	$	2,087	 	 	$	4.23	 	 	$	4,186	 	 	$	5.49	 	 	 	7,805	 	 	$	4.70	 
	Administrative & General	 	$	10,765	 	 	$	25.16	 	 	$	13,386	 	 	$	27.10	 	 	$	12,148	 	 	$	15.94	 	 	 	36,299	 	 	$	21.85	 
	Sales & Marketing	 	$	176	 	 	$	4.54	 	 	$	506	 	 	$	1.02	 	 	$	236	 	 	$	0.31	 	 	 	917	 	 	$	0.55	 
	Engineering	 	$	7,887	 	 	$	17.84	 	 	$	7,750	 	 	$	15.69	 	 	$	7,580	 	 	$	9.95	 	 	 	23,216	 	 	$	13.98	 
	Utilities	 	$	4,303	 	 	$	9.79	 	 	$	6,269	 	 	$	12.69	 	 	$	3,660	 	 	$	4.80	 	 	 	14,232	 	 	$	8.57	 
	Total Undistributed Expenses	 	$	24,661	 	 	$	62.83	 	 	$	29,997	 	 	$	60.72	 	 	$	27,810	 	 	$	36.50	 	 	 	82,468	 	 	$	49.65	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Gross Operating Profit	 	$	(5,245	)	 	$	47.57	 	 	$	3,817	 	 	$	7.73	 	 	$	58,507	 	 	$	76.78	 	 	 	57,080	 	 	$	34.36	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Fixed Expenses	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Property Taxes	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	 	0	 	 	$	-	 
	Leases (Rent)	 	$	1,380	 	 	$	3.87	 	 	$	1,380	 	 	$	2.79	 	 	$	41,243	 	 	$	54.13	 	 	 	44,003	 	 	$	26.49	 
	Insurance	 	$	1,854	 	 	$	9.16	 	 	$	1,854	 	 	$	3.75	 	 	$	1,854	 	 	$	2.43	 	 	 	5,562	 	 	$	3.35	 
	Total Fixed Expenses	 	$	3,234	 	 	$	13.03	 	 	$	3,234	 	 	$	6.55	 	 	$	43,097	 	 	$	56.56	 	 	 	49,565	 	 	$	29.84	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Income Before Reserves	 	$	(8,479	)	 	$	34.54	 	 	$	584	 	 	$	1.18	 	 	$	15,410	 	 	$	20.22	 	 	$	7,515	 	 	$	4.52	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Reserve for Replacement	 	$	2,042	 	 	$	7.34	 	 	$	2,783	 	 	$	5.63	 	 	$	5,583	 	 	$	7.33	 	 	 	10,408	 	 	$	6.27	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Net Operating Income	 	$	(10,521	)	 	$	27.20	 	 	$	(2,199	)	 	$	(4.45	)	 	$	9,827	 	 	$	12.90	 	 	$	(2,893	)	 	$	(1.74	)

 

 

	 	Page 2 of 19	109.3. Ex 18(a)- 3rd Part - Orchards Annex March 13 Issue / Current YTD

 

    	 

    	 

     

Orchards Annex

Current Year Budget

2012

 

	Budget - 2013	 
	 	 
	 	Year to Date

 

	 	 	January	 	 	February	 	 	March	 	 	April	 	 	May	 	 	June	 	 	July	 	 	August	 	 	September	 	 	October	 	 	November	 	 	December	 	 	Total
    Year	 
	 	 	Amount	 	 	Amount	 	 	Amount	 	 	Amount	 	 	Amount	 	 	Amount	 	 	Amount	 	 	Amount	 	 	Amount	 	 	Amount	 	 	Amount	 	 	Amount	 	 	Amount	 	 	POR	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Available Room Nights	 	 	868	 	 	 	784	 	 	 	868	 	 	 	840	 	 	 	868	 	 	 	840	 	 	 	868	 	 	 	868	 	 	 	840	 	 	 	868	 	 	 	840	 	 	 	868	 	 	 	10,220	 	 	 	 	 
	Occupied Rooms - Revenue	 	 	405	 	 	 	478	 	 	 	712	 	 	 	773	 	 	 	694	 	 	 	630	 	 	 	625	 	 	 	625	 	 	 	672	 	 	 	695	 	 	 	630	 	 	 	477	 	 	 	7,416	 	 	 	 	 
	Occupied Rooms - With Comps	 	 	405	 	 	 	478	 	 	 	712	 	 	 	773	 	 	 	694	 	 	 	630	 	 	 	625	 	 	 	625	 	 	 	672	 	 	 	695	 	 	 	630	 	 	 	477	 	 	 	7,416	 	 	 	 	 
	Occupancy	 	 	46.7	%	 	 	61.0	%	 	 	82.0	%	 	 	92.0	%	 	 	80.0	%	 	 	75.0	%	 	 	72.0	%	 	 	72.0	%	 	 	80.0	%	 	 	80.1	%	 	 	75.0	%	 	 	55.0	%	 	 	72.6	%	 	 	 	 
	ADR	 	$	126.05	 	 	$	150.00	 	 	$	185.00	 	 	$	185.00	 	 	$	180.00	 	 	$	170.00	 	 	$	135.00	 	 	$	125.00	 	 	$	166.00	 	 	$	180.00	 	 	$	135.00	 	 	$	130.00	 	 	$	158.54	 	 	 	 	 
	RevPAR	 	$	58.81	 	 	$	91.45	 	 	$	151.75	 	 	$	170.24	 	 	$	143.92	 	 	$	127.50	 	 	$	97.21	 	 	$	90.01	 	 	$	132.80	 	 	$	144.12	 	 	$	101.25	 	 	$	71.50	 	 	$	115.04	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Revenues	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Rooms	 	 	51,050	 	 	 	71,700	 	 	 	131,720	 	 	 	143,005	 	 	 	124,920	 	 	 	107,100	 	 	 	84,375	 	 	 	78,125	 	 	 	111,552	 	 	 	125,100	 	 	 	85,050	 	 	 	62,062	 	 	 	1,175,759	 	 	$	158.54	 
	Food & Beverage	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	$	-	 
	Miscellaneous	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	$	-	 
	Total Revenues	 	 	51,050	 	 	 	71,700	 	 	 	131,720	 	 	 	143,005	 	 	 	124,920	 	 	 	107,100	 	 	 	84,375	 	 	 	78,125	 	 	 	111,552	 	 	 	125,100	 	 	 	85,050	 	 	 	62,062	 	 	 	1,175,759	 	 	$	158.54	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Department Expenses	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Rooms	 	 	31,350	 	 	 	39,138	 	 	 	39,591	 	 	 	43,769	 	 	 	38,361	 	 	 	40,168	 	 	 	31,017	 	 	 	31,787	 	 	 	33,537	 	 	 	34,422	 	 	 	30,814	 	 	 	25,689	 	 	 	419,644	 	 	$	56.58	 
	Food & Beverage	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	 	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	$	-	 
	Miscellaneous	 	 	284	 	 	 	500	 	 	 	497	 	 	 	505	 	 	 	488	 	 	 	443	 	 	 	443	 	 	 	443	 	 	 	443	 	 	 	443	 	 	 	443	 	 	 	443	 	 	 	5,375	 	 	$	0.72	 
	Total Department Expenses	 	 	31,634	 	 	 	39,638	 	 	 	40,088	 	 	 	44,274	 	 	 	38,849	 	 	 	40,611	 	 	 	31,460	 	 	 	32,230	 	 	 	33,980	 	 	 	34,865	 	 	 	31,257	 	 	 	26,132	 	 	 	425,019	 	 	$	57.31	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Departmental Profit	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Rooms	 	 	19,700	 	 	 	32,562	 	 	 	92,129	 	 	 	99,236	 	 	 	86,559	 	 	 	66,932	 	 	 	53,358	 	 	 	46,338	 	 	 	78,015	 	 	 	90,678	 	 	 	54,236	 	 	 	36,373	 	 	 	756,115	 	 	$	101.95	 
	Food & Beverage	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	$	-	 
	Miscellaneous	 	 	(284	)	 	 	(500	)	 	 	(497	)	 	 	(505	)	 	 	(488	)	 	 	(443	)	 	 	(443	)	 	 	(443	)	 	 	(443	)	 	 	(443	)	 	 	(443	)	 	 	(443	)	 	 	(5,375	)	 	$	(0.72	)
	Total Departmental Profit	 	 	19,416	 	 	 	32,062	 	 	 	91,632	 	 	 	98,731	 	 	 	86,071	 	 	 	66,489	 	 	 	52,915	 	 	 	45,895	 	 	 	77,572	 	 	 	90,235	 	 	 	53,793	 	 	 	35,930	 	 	 	750,740	 	 	$	101.23	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Undistributed Expenses	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Management Fees	 	 	1,532	 	 	 	2,151	 	 	 	3,952	 	 	 	4,290	 	 	 	3,748	 	 	 	3,213	 	 	 	1,688	 	 	 	1,563	 	 	 	2,231	 	 	 	2,502	 	 	 	1,701	 	 	 	1,241	 	 	 	29,811	 	 	$	4.02	 
	Administrative & General	 	 	10,765	 	 	 	12,096	 	 	 	19,049	 	 	 	17,296	 	 	 	15,273	 	 	 	13,549	 	 	 	11,403	 	 	 	11,445	 	 	 	12,285	 	 	 	12,394	 	 	 	11,199	 	 	 	11,370	 	 	 	158,124	 	 	$	21.32	 
	Sales & Marketing	 	 	176	 	 	 	889	 	 	 	3,303	 	 	 	1,421	 	 	 	983	 	 	 	588	 	 	 	2,325	 	 	 	2,570	 	 	 	2,515	 	 	 	3,686	 	 	 	2,580	 	 	 	2,136	 	 	 	23,172	 	 	$	3.12	 
	Engineering	 	 	7,887	 	 	 	8,082	 	 	 	6,970	 	 	 	9,574	 	 	 	10,360	 	 	 	9,503	 	 	 	52,377	 	 	 	9,880	 	 	 	10,526	 	 	 	10,750	 	 	 	9,801	 	 	 	8,819	 	 	 	154,528	 	 	$	20.84	 
	Utilities	 	 	4,303	 	 	 	5,592	 	 	 	4,905	 	 	 	5,053	 	 	 	5,930	 	 	 	7,452	 	 	 	7,400	 	 	 	7,200	 	 	 	7,000	 	 	 	6,800	 	 	 	6,400	 	 	 	7,300	 	 	 	75,335	 	 	$	10.16	 
	Total Undistributed Expenses	 	 	24,663	 	 	 	28,810	 	 	 	38,179	 	 	 	37,634	 	 	 	36,294	 	 	 	34,305	 	 	 	75,192	 	 	 	32,657	 	 	 	34,557	 	 	 	36,132	 	 	 	31,680	 	 	 	30,866	 	 	 	440,970	 	 	$	59.46	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Gross Operating Profit	 	 	(5,247	)	 	 	3,252	 	 	 	53,453	 	 	 	61,097	 	 	 	49,777	 	 	 	32,184	 	 	 	(22,278	)	 	 	13,239	 	 	 	43,015	 	 	 	54,103	 	 	 	22,112	 	 	 	5,063	 	 	 	309,770	 	 	$	41.77	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Fixed Expenses	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Property Taxes	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	 	0	 	 	$	-	 
	Leases (Rent)	 	 	1,380	 	 	 	1,380	 	 	 	41,130	 	 	 	41,130	 	 	 	41,130	 	 	 	41,130	 	 	 	41,130	 	 	 	41,130	 	 	 	41,130	 	 	 	41,130	 	 	 	1,380	 	 	 	1,380	 	 	 	334,560	 	 	$	45.11	 
	Insurance	 	 	1,854	 	 	 	1,854	 	 	 	1,854	 	 	 	1,854	 	 	 	1,854	 	 	 	1,854	 	 	 	1,854	 	 	 	1,854	 	 	 	1,854	 	 	 	1,854	 	 	 	1,854	 	 	 	1,854	 	 	 	22,248	 	 	$	3.00	 
	Total Fixed Expenses	 	 	3,234	 	 	 	3,234	 	 	 	42,984	 	 	 	42,984	 	 	 	42,984	 	 	 	42,984	 	 	 	42,984	 	 	 	42,984	 	 	 	42,984	 	 	 	42,984	 	 	 	3,234	 	 	 	3,234	 	 	 	356,808	 	 	$	48.11	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Income Before Reserves	 	 	(8,481	)	 	 	18	 	 	 	10,469	 	 	 	18,113	 	 	 	6,793	 	 	 	(10,800	)	 	 	(65,262	)	 	 	(29,745	)	 	 	31	 	 	 	11,119	 	 	 	18,878	 	 	 	1,829	 	 	 	(47,038	)	 	$	(6.34	)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Reserve for Replacement	 	 	2,042	 	 	 	2,868	 	 	 	5,269	 	 	 	5,720	 	 	 	4,997	 	 	 	4,284	 	 	 	3,375	 	 	 	3,125	 	 	 	4,462	 	 	 	5,004	 	 	 	3,402	 	 	 	2,482	 	 	 	47,030	 	 	$	6.34	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Net Operating Income	 	 	(10,523	)	 	 	(2,850	)	 	 	5,200	 	 	 	12,393	 	 	 	1,796	 	 	 	(15,084	)	 	 	(68,637	)	 	 	(32,870	)	 	 	(4,431	)	 	 	6,115	 	 	 	15,476	 	 	 	(653	)	 	 	(94,068	)	 	$	(12.68	)

  

 

	 	Page 3 of 19	109.3. Ex 18(a)- 3rd Part - Orchards Annex March 13 Issue / Budget YTD

 

    	 

    	 

     

  

Orchards Annex

Prior Year Actual

2011

 

Prior Year - 2011 

 

	 	 	Year to Date	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	January	 	 	February	 	 	March	 	 	April	 	 	May	 	 	June	 	 	July	 	 	August	 	 
	 	 	Amount	 	 	POR	 	 	Amount	 	 	POR	 	 	Amount	 	 	POR	 	 	Amount	 	 	POR	 	 	Amount	 	 	POR	 	 	Amount	 	 	POR	 	 	Amount	 	 	POR	 	 	Amount	 	 	POR	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Rooms Available	 	 	1,023	 	 	 	 	 	 	 	957	 	 	 	 	 	 	 	868	 	 	 	 	 	 	 	840	 	 	 	 	 	 	 	868	 	 	 	 	 	 	 	840	 	 	 	 	 	 	 	868	 	 	 	 	 	 	 	868	 	 	 	 	 	 
	Occupied Rooms	 	 	383	 	 	 	 	 	 	 	503	 	 	 	 	 	 	 	709	 	 	 	 	 	 	 	722	 	 	 	 	 	 	 	647	 	 	 	 	 	 	 	542	 	 	 	 	 	 	 	606	 	 	 	 	 	 	 	534	 	 	 	 	 	 
	Occupancy	 	 	37.4	%	 	 	 	 	 	 	52.6	%	 	 	 	 	 	 	81.7	%	 	 	 	 	 	 	86.0	%	 	 	 	 	 	 	74.5	%	 	 	 	 	 	 	64.5	%	 	 	 	 	 	 	69.8	%	 	 	 	 	 	 	61.5	%	 	 	 	 	 
	Average Daily Rate (ADR)	 	$	120.09	 	 	 	 	 	 	$	139.75	 	 	 	 	 	 	$	170.19	 	 	 	 	 	 	$	174.04	 	 	 	 	 	 	$	171.64	 	 	 	 	 	 	$	163.11	 	 	 	 	 	 	$	135.18	 	 	 	 	 	 	$	138.69	 	 	 	 	 	 
	Revenue/Available Room (REVPAR)	 	$	44.96	 	 	 	 	 	 	$	73.45	 	 	 	 	 	 	$	139.01	 	 	 	 	 	 	$	149.59	 	 	 	 	 	 	$	127.94	 	 	 	 	 	 	$	105.24	 	 	 	 	 	 	$	94.38	 	 	 	 	 	 	$	85.32	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Revenues	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Rooms	 	$	45,993	 	 	$	120.09	 	 	$	70,292	 	 	$	139.75	 	 	$	120,662	 	 	$	170.19	 	 	$	125,654	 	 	$	174.04	 	 	$	111,051	 	 	$	171.64	 	 	$	88,404	 	 	$	163.11	 	 	$	81,920	 	 	$	135.18	 	 	$	74,060	 	 	$	138.69	 	 
	Food & Beverage	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 
	Miscellaneous	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 
	Total Revenues	 	$	45,993	 	 	$	120.09	 	 	$	70,292	 	 	$	139.75	 	 	$	120,662	 	 	$	170.19	 	 	$	125,654	 	 	$	174.04	 	 	$	111,051	 	 	$	171.64	 	 	$	88,404	 	 	$	163.11	 	 	$	81,920	 	 	$	135.18	 	 	$	74,060	 	 	$	138.69	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Department Expenses	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Rooms	 	$	31,429	 	 	$	82.06	 	 	$	37,364	 	 	$	74.28	 	 	$	36,844	 	 	$	51.97	 	 	$	46,482	 	 	$	64.38	 	 	$	39,818	 	 	$	61.54	 	 	$	40,393	 	 	$	74.53	 	 	$	38,349	 	 	$	63.28	 	 	$	42,965	 	 	$	80.46	 	 
	Food & Beverage	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 
	Miscellaneous	 	$	609	 	 	$	1.59	 	 	$	485	 	 	$	0.96	 	 	$	482	 	 	$	0.68	 	 	$	491	 	 	$	0.68	 	 	$	473	 	 	$	0.73	 	 	$	430	 	 	$	0.79	 	 	$	332	 	 	$	0.55	 	 	$	364	 	 	$	0.68	 	 
	Total Department Expenses	 	$	32,037	 	 	$	83.65	 	 	$	37,849	 	 	$	75.25	 	 	$	37,327	 	 	$	52.65	 	 	$	46,972	 	 	$	65.06	 	 	$	40,291	 	 	$	62.27	 	 	$	40,823	 	 	$	75.32	 	 	$	38,682	 	 	$	63.83	 	 	$	43,329	 	 	$	81.14	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Departmental Profit	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Rooms	 	$	14,564	 	 	$	38.03	 	 	$	32,928	 	 	$	65.46	 	 	$	83,817	 	 	$	118.22	 	 	$	79,172	 	 	$	109.66	 	 	$	71,233	 	 	$	110.10	 	 	$	48,011	 	 	$	88.58	 	 	$	43,571	 	 	$	71.90	 	 	$	31,095	 	 	$	58.23	 	 
	Food & Beverage	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 
	Miscellaneous	 	$	(609	)	 	$	(1.59	)	 	$	(485	)	 	$	(0.96	)	 	$	(482	)	 	$	(0.68	)	 	$	(491	)	 	$	(0.68	)	 	$	(473	)	 	$	(0.73	)	 	$	(430	)	 	$	(0.79	)	 	$	(332	)	 	$	(0.55	)	 	$	(364	)	 	$	(0.68	)	 
	Total Departmental Profit	 	$	13,956	 	 	$	36.44	 	 	$	32,443	 	 	$	64.50	 	 	$	83,335	 	 	$	117.54	 	 	$	78,681	 	 	$	108.98	 	 	$	70,759	 	 	$	109.37	 	 	$	47,581	 	 	$	87.79	 	 	$	43,238	 	 	$	71.35	 	 	$	30,731	 	 	$	57.55	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Undistributed Expenses	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Management Fees	 	$	920	 	 	$	2.40	 	 	$	1,406	 	 	$	2.79	 	 	$	2,413	 	 	$	3.40	 	 	$	3,770	 	 	$	5.22	 	 	$	5,701	 	 	$	8.81	 	 	$	2,652	 	 	$	4.89	 	 	$	2,458	 	 	$	4.06	 	 	$	2,222	 	 	$	4.16	 	 
	Administrative & General	 	$	11,764	 	 	$	30.71	 	 	$	16,749	 	 	$	33.30	 	 	$	21,039	 	 	$	29.67	 	 	$	16,442	 	 	$	22.77	 	 	$	17,294	 	 	$	26.73	 	 	$	13,894	 	 	$	25.63	 	 	$	12,943	 	 	$	21.36	 	 	$	17,023	 	 	$	31.88	 	 
	Sales & Marketing	 	$	605	 	 	$	1.58	 	 	$	1,756	 	 	$	3.49	 	 	$	3,158	 	 	$	4.45	 	 	$	1,612	 	 	$	2.23	 	 	$	2,116	 	 	$	3.27	 	 	$	560	 	 	$	1.03	 	 	$	1,039	 	 	$	1.72	 	 	$	2,506	 	 	$	4.69	 	 
	Engineering	 	$	9,770	 	 	$	25.51	 	 	$	9,081	 	 	$	18.05	 	 	$	13,765	 	 	$	19.41	 	 	$	9,584	 	 	$	13.27	 	 	$	16,691	 	 	$	25.80	 	 	$	7,411	 	 	$	13.67	 	 	$	10,711	 	 	$	17.68	 	 	$	6,792	 	 	$	12.72	 	 
	Utilities	 	$	5,224	 	 	$	13.64	 	 	$	5,326	 	 	$	10.59	 	 	$	4,672	 	 	$	6.59	 	 	$	4,812	 	 	$	6.67	 	 	$	5,648	 	 	$	8.73	 	 	$	7,097	 	 	$	13.09	 	 	$	5,956	 	 	$	9.83	 	 	$	6,039	 	 	$	11.31	 	 
	Total Undistributed Expenses	 	$	28,282	 	 	$	73.84	 	 	$	34,318	 	 	$	68.23	 	 	$	45,047	 	 	$	63.54	 	 	$	36,220	 	 	$	50.17	 	 	$	47,450	 	 	$	73.34	 	 	$	31,613	 	 	$	58.33	 	 	$	33,107	 	 	$	54.63	 	 	$	34,582	 	 	$	64.76	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Gross Operating Profit	 	$	(14,326	)	 	$	(37.41	)	 	$	(1,875	)	 	$	(3.73	)	 	$	38,288	 	 	$	54.00	 	 	$	42,461	 	 	$	58.81	 	 	$	23,309	 	 	$	36.03	 	 	$	15,967	 	 	$	29.46	 	 	$	10,131	 	 	$	16.72	 	 	$	(3,851	)	 	$	(7.21	)	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Fixed Expenses	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Property Taxes	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 
	Leases (Rent)	 	$	1,499	 	 	$	3.91	 	 	$	3,040	 	 	$	6.04	 	 	$	26,777	 	 	$	37.77	 	 	$	38,217	 	 	$	52.93	 	 	$	42,518	 	 	$	65.72	 	 	$	41,228	 	 	$	76.07	 	 	$	37,932	 	 	$	62.59	 	 	$	40,123	 	 	$	75.14	 	 
	Insurance	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 
	Total Fixed Expenses	 	$	1,499	 	 	$	3.91	 	 	$	3,040	 	 	$	6.04	 	 	$	26,777	 	 	$	37.77	 	 	$	38,217	 	 	$	52.93	 	 	$	42,518	 	 	$	65.72	 	 	$	41,228	 	 	$	76.07	 	 	$	37,932	 	 	$	62.59	 	 	$	40,123	 	 	$	75.14	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Income Before Reserves	 	$	(15,826	)	 	$	(41.32	)	 	$	(4,916	)	 	$	(9.77	)	 	$	11,511	 	 	$	16.24	 	 	$	4,245	 	 	$	5.88	 	 	$	(19,208	)	 	$	(29.69	)	 	$	(25,261	)	 	$	(46.61	)	 	$	(27,801	)	 	$	(45.88	)	 	$	(43,975	)	 	$	(82.35	)	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Reserve for Replacement	 	$	1,840	 	 	$	4.80	 	 	$	2,812	 	 	$	5.59	 	 	$	4,826	 	 	$	6.81	 	 	$	5,026	 	 	$	6.96	 	 	$	4,442	 	 	$	6.87	 	 	$	3,536	 	 	$	6.52	 	 	$	3,277	 	 	$	5.41	 	 	$	2,962	 	 	$	5.55	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Net Operating Income	 	$	(17,666	)	 	$	(46.12	)	 	$	(7,727	)	 	$	(15.36	)	 	$	6,685	 	 	$	9.43	 	 	$	(782	)	 	$	(1.08	)	 	$	(23,650	)	 	$	(36.55	)	 	$	(28,797	)	 	$	(53.13	)	 	$	(31,077	)	 	$	(51.28	)	 	$	(46,937	)	 	$	(87.90	)	 

 

 

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	September	 	 	October	 	 	November	 	 	December	 	 	Total Year	 
	 	 	Amount	 	 	POR	 	 	Amount	 	 	POR	 	 	Amount	 	 	POR	 	 	Amount	 	 	POR	 	 	Amount	 	 	POR	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Rooms Available	 	 	840	 	 	 	 	 	 	 	868	 	 	 	 	 	 	 	840	 	 	 	 	 	 	 	868	 	 	 	 	 	 	 	10,548	 	 	 	 	 
	Occupied Rooms	 	 	579	 	 	 	 	 	 	 	746	 	 	 	 	 	 	 	593	 	 	 	 	 	 	 	461	 	 	 	 	 	 	 	7,025	 	 	 	 	 
	Occupancy	 	 	68.9	%	 	 	 	 	 	 	85.9	%	 	 	 	 	 	 	70.6	%	 	 	 	 	 	 	53.1	%	 	 	 	 	 	 	66.6	%	 	 	 	 
	Average Daily Rate (ADR)	 	$	183.80	 	 	 	 	 	 	$	186.10	 	 	 	 	 	 	$	184.01	 	 	 	 	 	 	$	161.18	 	 	 	 	 	 	$	163.23	 	 	 	 	 
	Revenue/Available Room (REVPAR)	 	$	126.69	 	 	 	 	 	 	$	159.94	 	 	 	 	 	 	$	129.90	 	 	 	 	 	 	$	85.61	 	 	 	 	 	 	$	108.71	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Revenues	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Rooms	 	$	106,420	 	 	$	183.80	 	 	$	138,827	 	 	$	186.10	 	 	$	109,118	 	 	$	184.01	 	 	$	74,306	 	 	$	161.18	 	 	 	1,146,706	 	 	$	163.23	 
	Food & Beverage	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	 	0	 	 	$	-	 
	Miscellaneous	 	$	-	 	 	$	-	 	 	$	4	 	 	$	0.01	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	 	4	 	 	$	0.00	 
	Total Revenues	 	$	106,420	 	 	$	183.80	 	 	$	138,832	 	 	$	186.10	 	 	$	109,118	 	 	$	184.01	 	 	$	74,306	 	 	$	161.18	 	 	 	1,146,711	 	 	$	163.23	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Department Expenses	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Rooms	 	$	39,499	 	 	$	68.22	 	 	$	42,309	 	 	$	56.71	 	 	$	37,404	 	 	$	63.08	 	 	$	29,248	 	 	$	63.45	 	 	 	462,104	 	 	$	65.78	 
	Food & Beverage	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	 	0	 	 	$	-	 
	Miscellaneous	 	$	345	 	 	$	0.60	 	 	$	342	 	 	$	0.46	 	 	$	318	 	 	$	0.54	 	 	$	344	 	 	$	0.75	 	 	 	5,016	 	 	$	0.71	 
	Total Department Expenses	 	$	39,844	 	 	$	68.81	 	 	$	42,651	 	 	$	57.17	 	 	$	37,722	 	 	$	63.61	 	 	$	29,593	 	 	$	64.19	 	 	 	467,120	 	 	$	66.49	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Departmental Profit	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Rooms	 	$	66,921	 	 	$	115.58	 	 	$	96,518	 	 	$	129.38	 	 	$	71,714	 	 	$	120.93	 	 	$	45,058	 	 	$	97.74	 	 	$	684,602	 	 	$	97.45	 
	Food & Beverage	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 
	Miscellaneous	 	$	(345	)	 	$	(0.60	)	 	$	(337	)	 	$	(0.45	)	 	$	(318	)	 	$	(0.54	)	 	$	(344	)	 	$	(0.75	)	 	$	(5,011	)	 	$	(0.71	)
	Total Departmental Profit	 	$	66,576	 	 	$	114.98	 	 	$	96,181	 	 	$	128.93	 	 	$	71,396	 	 	$	120.40	 	 	$	44,714	 	 	$	96.99	 	 	 	679,590	 	 	$	96.74	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Undistributed Expenses	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Management Fees	 	$	3,193	 	 	$	5.51	 	 	$	4,165	 	 	$	5.58	 	 	$	3,211	 	 	$	5.42	 	 	$	2,229	 	 	$	4.84	 	 	 	34,339	 	 	$	4.89	 
	Administrative & General	 	$	15,643	 	 	$	27.02	 	 	$	17,791	 	 	$	23.85	 	 	$	13,894	 	 	$	23.43	 	 	$	10,188	 	 	$	22.10	 	 	 	184,662	 	 	$	26.29	 
	Sales & Marketing	 	$	3,350	 	 	$	5.79	 	 	$	1,232	 	 	$	1.65	 	 	$	771	 	 	$	1.30	 	 	$	1,838	 	 	$	3.99	 	 	 	20,543	 	 	$	2.92	 
	Engineering	 	$	19,327	 	 	$	33.38	 	 	$	9,464	 	 	$	12.69	 	 	$	7,514	 	 	$	12.67	 	 	$	7,226	 	 	$	15.67	 	 	 	127,337	 	 	$	18.13	 
	Utilities	 	$	5,476	 	 	$	9.46	 	 	$	5,152	 	 	$	6.91	 	 	$	4,881	 	 	$	8.23	 	 	$	3,965	 	 	$	8.60	 	 	 	64,247	 	 	$	9.15	 
	Total Undistributed Expenses	 	$	46,988	 	 	$	81.15	 	 	$	37,804	 	 	$	50.67	 	 	$	30,271	 	 	$	51.05	 	 	$	25,447	 	 	$	55.20	 	 	 	431,128	 	 	$	61.37	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Gross Operating Profit	 	$	19,588	 	 	$	33.83	 	 	$	58,377	 	 	$	78.25	 	 	$	41,126	 	 	$	69.35	 	 	$	19,267	 	 	$	41.79	 	 	 	248,463	 	 	$	35.37	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Fixed Expenses	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Property Taxes	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	 	0	 	 	$	-	 
	Leases (Rent)	 	$	40,123	 	 	$	69.30	 	 	$	40,305	 	 	$	54.03	 	 	$	1,569	 	 	$	2.65	 	 	$	1,569	 	 	$	3.40	 	 	 	314,900	 	 	$	44.83	 
	Insurance	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	-	 	 	$	3,708	 	 	$	8.04	 	 	 	3,708	 	 	$	0.53	 
	Total Fixed Expenses	 	$	40,123	 	 	$	69.30	 	 	$	40,305	 	 	$	54.03	 	 	$	1,569	 	 	$	2.65	 	 	$	5,277	 	 	$	11.45	 	 	 	318,608	 	 	$	45.35	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Income Before Reserves	 	$	(20,535	)	 	$	(35.47	)	 	$	18,073	 	 	$	24.23	 	 	$	39,557	 	 	$	66.71	 	 	$	13,990	 	 	$	30.35	 	 	$	(70,146	)	 	$	(9.99	)
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Reserve for Replacement	 	$	4,257	 	 	$	7.35	 	 	$	5,553	 	 	$	7.44	 	 	$	4,365	 	 	$	7.36	 	 	$	2,972	 	 	$	6.45	 	 	$	45,868	 	 	$	6.53	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Net Operating Income	 	$	(24,792	)	 	$	(42.82	)	 	$	12,519	 	 	$	16.78	 	 	$	35,192	 	 	$	59.35	 	 	$	11,018	 	 	$	23.90	 	 	$	(116,014	)	 	$	(16.51	)

 

 

	 	Page 4 of 19	109.3. Ex 18(a)- 3rd Part - Orchards Annex March 13 Issue / Prior Yr YTD

 

    	 

    	 

     

Orchards Annex

Rooms Department

Actual vs. Budget and Prior Year

March 2013

 

	 	 	 	 	 
	 	 	Current
                                          Month	 	 
	 	 	Actual	 	 	%
                                                                                                                                                                                                                                                                                                             to
                                                                                                                                                                                                                                                                                                             
Revenue	 	 	Budget	 	 	%
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              to
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
Revenue	 	 	Variance	 	 	%
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              to
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
Revenue	 	 	Prior
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Year	 	 	%
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              to
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
Revenue	 	 	Variance	 	 	%
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              to
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
Revenue	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Revenue	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4100 · Room Charges	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4110 · Transient Room charges	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4111 · Best
    Available Rate	 	$	45,486	 	 	 	32.6	%	 	$	41,762	 	 	 	31.7	%	 	$	3,723	 	 	 	47.5	%	 	$	38,256	 	 	 	31.7	%	 	$	7,229	 	 	 	38.2	%	 
	4113 · Corporate	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 
	4114 · Discount	 	 	83,417	 	 	 	59.8	%	 	 	86,855	 	 	 	65.9	%	 	 	(3,438	)	 	 	-43.8	%	 	 	79,563	 	 	 	65.9	%	 	 	3,854	 	 	 	20.4	%	 
	4115·FIT/Internet	 	 	8,968	 	 	 	6.4	%	 	 	2,393	 	 	 	1.8	%	 	 	6,575	 	 	 	83.8	%	 	 	2,192	 	 	 	1.8	%	 	 	6,776	 	 	 	35.8	%	 
	4116 · House	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 
	4110 ·
    Transient Room charges - Other	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 
	Total 4110 . Transient Room charges	 	 	137,871	 	 	 	98.8	%	 	 	131,010	 	 	 	99.5	%	 	 	6,861	 	 	 	87.5	%	 	 	120,012	 	 	 	99.5	%	 	 	17,860	 	 	 	94.5	%	 
	4150 . Group	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4151 · Group Association	 	 	920	 	 	 	0.7	%	 	 	-	 	 	 	0.0	%	 	 	920	 	 	 	11.7	%	 	 	-	 	 	 	0.0	%	 	 	920	 	 	 	4.9	%	 
	4152 · Group Corporate	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 
	4153 · Group Smerf	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 
	4154·Group-Tour	 	 	774	 	 	 	0.6	%	 	 	710	 	 	 	0.5	%	 	 	64	 	 	 	0.8	%	 	 	650	 	 	 	0.5	%	 	 	124	 	 	 	0.7	%	 
	Total 4150 · Group	 	 	1,694	 	 	 	1.2	%	 	 	710	 	 	 	0.5	%	 	 	984	 	 	 	12.5	%	 	 	650	 	 	 	0.5	%	 	 	1,044	 	 	 	5.5	%	 
	Total 4100 . Room Charges	 	 	139,565	 	 	 	100.0	%	 	 	131,720	 	 	 	100.0	%	 	 	7,845	 	 	 	100.0	%	 	 	120,662	 	 	 	100.0	%	 	 	18,904	 	 	 	100.0	%	 
	Total Revenue	 	 	139,565	 	 	 	100.0	%	 	 	131,720	 	 	 	100.0	%	 	 	7,845	 	 	 	100.0	%	 	 	120,662	 	 	 	100.0	%	 	 	18,904	 	 	 	100.0	%	 
	Gross Profit	 	 	139,565	 	 	 	100.0	%	 	 	131,720	 	 	 	100.0	%	 	 	7,845	 	 	 	100.0	%	 	 	120,662	 	 	 	100.0	%	 	 	18,904	 	 	 	100.0	%	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Expense	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5000 . Payroll & Benefits	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5100000 . Rooms Payroll	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5111000 . Front Office	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5111160 · Assistant Manager	 	 	2,032	 	 	 	1.5	%	 	 	-	 	 	 	0.0	%	 	 	2,032	 	 	 	25.9	%	 	 	-	 	 	 	0.0	%	 	 	2,032	 	 	 	10.8	%	 
	5111170 · Rooms Manager	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 
	5111199 · Rooms Shared
    Services	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 
	5111600 · Guest Service
    Agents	 	 	4,263	 	 	 	3.1	%	 	 	5,371	 	 	 	4.1	%	 	 	(1,108	)	 	 	-14.1	%	 	 	2,714	 	 	 	2.2	%	 	 	1,549	 	 	 	8.2	%	 
	5111605 · Reservationist	 	 	1,213	 	 	 	0.9	%	 	 	1,024	 	 	 	0.8	%	 	 	189	 	 	 	2.4	%	 	 	840	 	 	 	0.7	%	 	 	372	 	 	 	2.0	%	 
	5111606 · Reservationist
    - Bonus	 	 	154	 	 	 	0.1	%	 	 	-	 	 	 	0.0	%	 	 	154	 	 	 	2.0	%	 	 	154	 	 	 	0.1	%	 	 	-	 	 	 	0.0	%	 
	5111610 · Lead Service
    Agent	 	 	(550	)	 	 	-0.4	%	 	 	-	 	 	 	0.0	%	 	 	(550	)	 	 	-7.0	%	 	 	1,125	 	 	 	0.9	%	 	 	(1,675	)	 	 	-8.9	%	 
	5111640
    · Night Auditor	 	 	2,618	 	 	 	1.9	%	 	 	-	 	 	 	0.0	%	 	 	2,618	 	 	 	33.4	%	 	 	1,375	 	 	 	1.1	%	 	 	1,243	 	 	 	6.6	%	 
	Total 5111000 . Front Office	 	 	9,730	 	 	 	7.0	%	 	 	6,395	 	 	 	4.9	%	 	 	3,335	 	 	 	42.5	%	 	 	6,209	 	 	 	5.1	%	 	 	3,521	 	 	 	18.6	%	 
	5112000 . Housekeeping	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5112050 · Housekeeping	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 
	5112170 · Housekeeping
    Manager	 	 	2,254	 	 	 	1.6	%	 	 	2,644	 	 	 	2.0	%	 	 	(390	)	 	 	-5.0	%	 	 	443	 	 	 	0.4	%	 	 	1,811	 	 	 	9.6	%	 
	5112500 · Room Attendent	 	 	5,490	 	 	 	3.9	%	 	 	3,455	 	 	 	2.6	%	 	 	2,035	 	 	 	25.9	%	 	 	3,354	 	 	 	2.8	%	 	 	2,136	 	 	 	11.3	%	 
	5112510 · House Attendant	 	 	1,408	 	 	 	1.0	%	 	 	988	 	 	 	0.7	%	 	 	420	 	 	 	5.4	%	 	 	959	 	 	 	0.8	%	 	 	449	 	 	 	2.4	%	 
	5112520 · Laundry Attendant	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 
	5112530 · Lead Room Supervisor	 	 	3,026	 	 	 	2.2	%	 	 	-	 	 	 	0.0	%	 	 	3,026	 	 	 	38.6	%	 	 	2,124	 	 	 	1.8	%	 	 	902	 	 	 	4.8	%	 
	5112540 · Housekeeping
    Supervisor	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 
	5112600 · House Attendant
    II	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 
	5112599 · Housekeeping-Other
    Pay	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 
	Total 5112000 . Housekeeping	 	 	12,178	 	 	 	8.7	%	 	 	7,086	 	 	 	5.4	%	 	 	5,092	 	 	 	64.9	%	 	 	6,880	 	 	 	5.7	%	 	 	5,298	 	 	 	28.0	%	 
	5150 . Rooms Taxes & Benefits	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5199 · Rooms Shared Serv
    Fringe	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 
	5151 · Rms Payroll Taxes	 	 	981	 	 	 	0.7	%	 	 	2,526	 	 	 	1.9	%	 	 	(1,545	)	 	 	-19.7	%	 	 	757	 	 	 	0.6	%	 	 	224	 	 	 	1.2	%	 
	5152 · Rms Workers'  Comp	 	 	279	 	 	 	0.2	%	 	 	161	 	 	 	0.1	%	 	 	118	 	 	 	1.5	%	 	 	65	 	 	 	0.1	%	 	 	214	 	 	 	1.1	%	 
	5153 · Rms Employ Benefits	 	 	450	 	 	 	0.3	%	 	 	217	 	 	 	0.2	%	 	 	233	 	 	 	3.0	%	 	 	211	 	 	 	0.2	%	 	 	239	 	 	 	1.3	%	 
	5155 · Rms PTO	 	 	111	 	 	 	0.1	%	 	 	430	 	 	 	0.3	%	 	 	(319	)	 	 	-4.1	%	 	 	213	 	 	 	0.2	%	 	 	(101	)	 	 	-0.5	%	 
	5156 ·
    Rms Employ Meals	 	 	84	 	 	 	0.1	%	 	 	48	 	 	 	0.0	%	 	 	36	 	 	 	0.5	%	 	 	46	 	 	 	0.0	%	 	 	37	 	 	 	0.2	%	 
	Total 5150 . Rooms Taxes & Benefits	 	 	1,905	 	 	 	1.4	%	 	 	3,382	 	 	 	2.6	%	 	 	(1,477	)	 	 	-18.8	%	 	 	1,291	 	 	 	1.1	%	 	 	614	 	 	 	3.2	%	 
	5250 . Housekeeping Taxes & Ben	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5250 · Housekeeping Taxes
    & Ben - Other	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 
	5251 · Housekeeping payroll
    taxes	 	 	2,399	 	 	 	1.7	%	 	 	-	 	 	 	0.0	%	 	 	2,399	 	 	 	30.6	%	 	 	1,696	 	 	 	1.4	%	 	 	703	 	 	 	3.7	%	 
	5252 · Housekeeping Workmans
    Comp	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	92	 	 	 	0.1	%	 	 	(92	)	 	 	-0.5	%	 
	5253 · Housekeeping employee
    bene	 	 	118	 	 	 	0.1	%	 	 	-	 	 	 	0.0	%	 	 	118	 	 	 	1.5	%	 	 	-	 	 	 	0.0	%	 	 	118	 	 	 	0.6	%	 
	5255 · Housekeeping PTO
    Expense	 	 	174	 	 	 	0.1	%	 	 	-	 	 	 	0.0	%	 	 	174	 	 	 	2.2	%	 	 	205	 	 	 	0.2	%	 	 	(31	)	 	 	-0.2	%	 
	5256 · Hskpg - Employee
    Meals	 	 	203	 	 	 	0.1	%	 	 	-	 	 	 	0.0	%	 	 	203	 	 	 	2.6	%	 	 	-	 	 	 	0.0	%	 	 	203	 	 	 	1.1	%	 
	5257 ·
    Shared PTO Expense	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 
	Total 5250 . Housekeeping
    Taxes & Ben	 	 	2,894	 	 	 	2.1	%	 	 	-	 	 	 	0.0	%	 	 	2,894	 	 	 	36.9	%	 	 	1,992	 	 	 	1.7	%	 	 	902	 	 	 	4.8	%	 
	Total 5100000 . Rooms Payroll	 	 	26,707	 	 	 	19.1	%	 	 	16,864	 	 	 	12.8	%	 	 	9,844	 	 	 	125.5	%	 	 	16,372	 	 	 	13.6	%	 	 	10,335	 	 	 	54.7	%	 
	Total 5000 . Payroll &
    Benefits	 	 	26,707	 	 	 	19.1	%	 	 	16,864	 	 	 	12.8	%	 	 	9,844	 	 	 	125.5	%	 	 	16,372	 	 	 	13.6	%	 	 	10,335	 	 	 	54.7	%	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	8100 . Rooms  Expenses	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	8101 · Comp Breakfast	 	 	10,717	 	 	 	7.7	%	 	 	9,256	 	 	 	7.0	%	 	 	1,461	 	 	 	18.6	%	 	 	7,393	 	 	 	6.1	%	 	 	3,324	 	 	 	17.6	%	 
	8110 · Guest Supplies	 	 	1,330	 	 	 	1.0	%	 	 	1,050	 	 	 	0.8	%	 	 	280	 	 	 	3.6	%	 	 	1,019	 	 	 	0.8	%	 	 	311	 	 	 	1.6	%	 
	8111 · In-Room Equipment	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 
	8112 · Guest Relations	 	 	16	 	 	 	0.0	%	 	 	25	 	 	 	0.0	%	 	 	(9	)	 	 	-0.1	%	 	 	24	 	 	 	0.0	%	 	 	(8	)	 	 	0.0	%	 
	8114 · Guest Amenities	 	 	22	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	22	 	 	 	0.3	%	 	 	-	 	 	 	0.0	%	 	 	22	 	 	 	0.1	%	 
	8115 · Operating Supplies	 	 	160	 	 	 	0.1	%	 	 	19	 	 	 	0.0	%	 	 	142	 	 	 	1.8	%	 	 	18	 	 	 	0.0	%	 	 	142	 	 	 	0.8	%	 
	8117 · Newspapers	 	 	66	 	 	 	0.0	%	 	 	337	 	 	 	0.3	%	 	 	(271	)	 	 	-3.5	%	 	 	145	 	 	 	0.1	%	 	 	(78	)	 	 	-0.4	%	 
	8120 · Cleaning Supplies	 	 	55	 	 	 	0.0	%	 	 	80	 	 	 	0.1	%	 	 	(25	)	 	 	-0.3	%	 	 	78	 	 	 	0.1	%	 	 	(23	)	 	 	-0.1	%	 
	8129 · Linens	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 
	8130 · Outside Laundry	 	 	9,007	 	 	 	6.5	%	 	 	7,203	 	 	 	5.5	%	 	 	1,804	 	 	 	23.0	%	 	 	6,993	 	 	 	5.8	%	 	 	2,014	 	 	 	10.7	%	 
	8135 · Uniforms	 	 	65	 	 	 	0.0	%	 	 	412	 	 	 	0.3	%	 	 	(347	)	 	 	-4.4	%	 	 	400	 	 	 	0.3	%	 	 	(335	)	 	 	-1.8	%	 
	8149 · Group Commissions	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 
	8150 · TA Commissions	 	 	269	 	 	 	0.2	%	 	 	415	 	 	 	0.3	%	 	 	(146	)	 	 	-1.9	%	 	 	403	 	 	 	0.3	%	 	 	(134	)	 	 	-0.7	%	 
	8151 · Computer Maint
    & Supp	 	 	427	 	 	 	0.3	%	 	 	777	 	 	 	0.6	%	 	 	(349	)	 	 	-4.5	%	 	 	754	 	 	 	0.6	%	 	 	(327	)	 	 	-1.7	%	 
	8152 · Auto Expense (van)	 	 	77	 	 	 	0.1	%	 	 	-	 	 	 	0.0	%	 	 	77	 	 	 	1.0	%	 	 	-	 	 	 	0.0	%	 	 	77	 	 	 	0.4	%	 
	8155 · Reservation Expense	 	 	2,668	 	 	 	1.9	%	 	 	1,145	 	 	 	0.9	%	 	 	1,523	 	 	 	19.4	%	 	 	1,111	 	 	 	0.9	%	 	 	1,557	 	 	 	8.2	%	 
	8156 · Concierge Expenses	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 
	8157 · Walk Expense	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 
	8158 · Equipment Repair	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 
	8164 · Decorations	 	 	-	 	 	 	0.0	%	 	 	65	 	 	 	0.0	%	 	 	(65	)	 	 	-0.8	%	 	 	63	 	 	 	0.1	%	 	 	(63	)	 	 	-0.3	%	 
	8165 · Comp In-Room Coffee	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 
	8170 · Contract Labor	 	 	42	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	42	 	 	 	0.5	%	 	 	-	 	 	 	0.0	%	 	 	42	 	 	 	0.2	%	 
	8174 · Music & Entertainment	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 
	8175 · Cable TV	 	 	1,043	 	 	 	0.7	%	 	 	576	 	 	 	0.4	%	 	 	467	 	 	 	6.0	%	 	 	559	 	 	 	0.5	%	 	 	484	 	 	 	2.6	%	 
	8178 · Express Mail	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 
	8184 · Printing	 	 	31	 	 	 	0.0	%	 	 	269	 	 	 	0.2	%	 	 	(239	)	 	 	-3.0	%	 	 	262	 	 	 	0.2	%	 	 	(231	)	 	 	-1.2	%	 
	8185 · Telephone Cell
    & Radio	 	 	38	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	38	 	 	 	0.5	%	 	 	49	 	 	 	0.0	%	 	 	(11	)	 	 	-0.1	%	 
	8190 · Office Supplies	 	 	143	 	 	 	0.1	%	 	 	135	 	 	 	0.1	%	 	 	8	 	 	 	0.1	%	 	 	131	 	 	 	0.1	%	 	 	12	 	 	 	0.1	%	 
	8191 · Employee Relations	 	 	24	 	 	 	0.0	%	 	 	32	 	 	 	0.0	%	 	 	(8	)	 	 	-0.1	%	 	 	31	 	 	 	0.0	%	 	 	(8	)	 	 	0.0	%	 
	8192 · Building Rent -
    Housekee	 	 	-	 	 	 	0.0	%	 	 	870	 	 	 	0.7	%	 	 	(870	)	 	 	-11.1	%	 	 	844	 	 	 	0.7	%	 	 	(844	)	 	 	-4.5	%	 
	8193 · License & Permits	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 
	8195 · Equipment Lease	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	133	 	 	 	0.1	%	 	 	(133	)	 	 	-0.7	%	 
	8196 · Business Travel	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 
	8197 · Business Meals	 	 	-	 	 	 	0.0	%	 	 	62	 	 	 	0.0	%	 	 	(62	)	 	 	-0.8	%	 	 	60	 	 	 	0.1	%	 	 	(60	)	 	 	-0.3	%	 
	8225 ·
    Laundry Expense	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 
	Total 8100 . Rooms  Expenses	 	 	26,202	 	 	 	18.8	%	 	 	22,727	 	 	 	17.3	%	 	 	3,475	 	 	 	44.3	%	 	 	20,472	 	 	 	17.0	%	 	 	5,730	 	 	 	30.3	%	 
	Total Expense	 	 	52,909	 	 	 	37.9	%	 	 	39,591	 	 	 	30.1	%	 	 	13,318	 	 	 	169.8	%	 	 	36,844	 	 	 	30.5	%	 	 	16,065	 	 	 	85.0	%	 
	Net Income	 	 	86,656	 	 	 	62.1	%	 	 	92,129	 	 	 	69.9	%	 	 	(5,473	)	 	 	-69.8	%	 	 	83,817	 	 	 	69.5	%	 	 	2,839	 	 	 	15.0	%	 

 

	 	 	 	 	 	Budget	 
	 	 	Year
                                                                                                                to Date	 	 	Full
                                                                                                                                                                                                                                                                                                                                                                                                             Year	 
	 	 	Actual	 	 	%
                                                                                                                                                                                                                                                                                                                                                       to
                                                                                                                                                                                                                                                                                                                                                       
Revenue	 	 	Budget	 	 	%
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              to
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
Revenue	 	 	Variance	 	 	%
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              to
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
Revenue	 	 	Prior
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Year	 	 	%
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              to
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
Revenue	 	 	Variance	 	 	%
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              to
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
Revenue	 	 	Amount	 	 	%
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              to
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
Revenue	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Revenue	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4100 · Room Charges	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4110 · Transient Room charges	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4111 · Best
    Available Rate	 	$	72,176	 	 	 	27.7	%	 	$	75,086	 	 	 	29.5	%	 	$	(2,910	)	 	 	-50.9	%	 	$	91,423	 	 	 	38.6	%	 	$	(19,246	)	 	 	-82.8	%	 	$	1,074,584	 	 	 	100.0	%
	4113 · Corporate	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	4114 · Discount	 	 	170,564	 	 	 	65.6	%	 	 	173,835	 	 	 	68.3	%	 	 	(3,271	)	 	 	-57.2	%	 	 	139,876	 	 	 	59.0	%	 	 	30,689	 	 	 	132.0	%	 	 	-	 	 	 	0.0	%
	4115·FIT/Internet	 	 	14,183	 	 	 	5.5	%	 	 	4,159	 	 	 	1.6	%	 	 	10,024	 	 	 	175.2	%	 	 	4,551	 	 	 	1.9	%	 	 	9,632	 	 	 	41.4	%	 	 	-	 	 	 	0.0	%
	4116 · House	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	4110 ·
    Transient Room charges - Other	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	Total 4110 . Transient Room charges	 	 	256,924	 	 	 	98.7	%	 	 	253,080	 	 	 	99.5	%	 	 	3,844	 	 	 	67.2	%	 	 	235,850	 	 	 	99.5	%	 	 	21,074	 	 	 	90.7	%	 	 	1,074,584	 	 	 	100.0	%
	4150 . Group	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4151 · Group Association	 	 	1,335	 	 	 	0.5	%	 	 	225	 	 	 	0.1	%	 	 	1,110	 	 	 	19.4	%	 	 	-	 	 	 	0.0	%	 	 	1,335	 	 	 	5.7	%	 	 	-	 	 	 	0.0	%
	4152 · Group Corporate	 	 	250	 	 	 	0.1	%	 	 	-	 	 	 	0.0	%	 	 	250	 	 	 	4.4	%	 	 	-	 	 	 	0.0	%	 	 	250	 	 	 	1.1	%	 	 	-	 	 	 	0.0	%
	4153 · Group Smerf	 	 	-	 	 	 	0.0	%	 	 	456	 	 	 	0.2	%	 	 	(456	)	 	 	-8.0	%	 	 	447	 	 	 	0.2	%	 	 	(447	)	 	 	-1.9	%	 	 	-	 	 	 	0.0	%
	4154·Group-Tour	 	 	1,683	 	 	 	0.6	%	 	 	710	 	 	 	0.3	%	 	 	973	 	 	 	17.0	%	 	 	650	 	 	 	0.3	%	 	 	1,033	 	 	 	4.4	%	 	 	-	 	 	 	0.0	%
	Total 4150 · Group	 	 	3,268.00	 	 	 	1.3	%	 	 	1,390.53	 	 	 	0.5	%	 	 	1,877	 	 	 	32.8	%	 	 	1,097.00	 	 	 	0.5	%	 	 	2,171	 	 	 	9.3	%	 	 	-	 	 	 	0.0	%
	Total 4100 . Room Charges	 	 	260,192	 	 	 	100.0	%	 	 	254,470	 	 	 	100.0	%	 	 	5,721	 	 	 	100.0	%	 	 	236,947	 	 	 	100.0	%	 	 	23,245	 	 	 	100.0	%	 	 	1,074,584	 	 	 	100.0	%
	Total Revenue	 	 	260,192	 	 	 	100.0	%	 	 	254,470	 	 	 	100.0	%	 	 	5,721	 	 	 	100.0	%	 	 	236,947	 	 	 	100.0	%	 	 	23,245	 	 	 	100.0	%	 	 	1,074,584	 	 	 	100.0	%
	Gross Profit	 	 	260,192	 	 	 	100.0	%	 	 	254,470	 	 	 	100.0	%	 	 	5,721	 	 	 	100.0	%	 	 	236,947	 	 	 	100.0	%	 	 	23,245	 	 	 	100.0	%	 	 	1,074,584	 	 	 	100.0	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Expense	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5000 . Payroll & Benefits	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5100000 . Rooms Payroll	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5111000 . Front Office	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5111160 · Assistant Manager	 	 	4,521	 	 	 	1.7	%	 	 	1,185	 	 	 	0.5	%	 	 	3,336	 	 	 	58.3	%	 	 	-	 	 	 	0.0	%	 	 	4,521	 	 	 	19.4	%	 	 	-	 	 	 	0.0	%
	5111170 · Rooms Manager	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	5111199 · Rooms Shared
    Services	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	 	 
	5111600 · Guest Service
    Agents	 	 	9,318	 	 	 	3.6	%	 	 	14,904	 	 	 	5.9	%	 	 	(5,586	)	 	 	-97.6	%	 	 	8,044	 	 	 	3.4	%	 	 	1,275	 	 	 	5.5	%	 	 	21,346	 	 	 	2.0	%
	5111605 · Reservationist	 	 	2,621	 	 	 	1.0	%	 	 	3,116	 	 	 	1.2	%	 	 	(495	)	 	 	-8.7	%	 	 	2,694	 	 	 	1.1	%	 	 	(74	)	 	 	-0.3	%	 	 	12,745	 	 	 	1.2	%
	5111606 · Reservationist
    - Bonus	 	 	528	 	 	 	0.2	%	 	 	-	 	 	 	0.0	%	 	 	528	 	 	 	9.2	%	 	 	594	 	 	 	0.3	%	 	 	(66	)	 	 	-0.3	%	 	 	-	 	 	 	0.0	%
	5111610 · Lead Service
    Agent	 	 	(203	)	 	 	-0.1	%	 	 	-	 	 	 	0.0	%	 	 	(203	)	 	 	-3.6	%	 	 	3,406	 	 	 	1.4	%	 	 	(3,609	)	 	 	-15.5	%	 	 	10,596	 	 	 	1.0	%
	5111640
    · Night Auditor	 	 	6,044	 	 	 	2.3	%	 	 	-	 	 	 	0.0	%	 	 	6,044	 	 	 	105.6	%	 	 	4,242	 	 	 	1.8	%	 	 	1,802	 	 	 	7.8	%	 	 	16,128	 	 	 	1.5	%
	Total 5111000 . Front Office	 	 	22,829	 	 	 	8.8	%	 	 	19,205	 	 	 	7.5	%	 	 	3,624	 	 	 	63.3	%	 	 	18,980	 	 	 	8.0	%	 	 	3,849	 	 	 	16.6	%	 	 	60,815	 	 	 	5.7	%
	5112000 . Housekeeping	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5112050 · Housekeeping	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	5112170 · Housekeeping
    Manager	 	 	5,633	 	 	 	2.2	%	 	 	10,105	 	 	 	4.0	%	 	 	(4,472	)	 	 	-78.2	%	 	 	3,901	 	 	 	1.6	%	 	 	1,732	 	 	 	7.5	%	 	 	17,148	 	 	 	1.6	%
	5112500 · Room Attendent	 	 	10,878	 	 	 	4.2	%	 	 	9,615	 	 	 	3.8	%	 	 	1,263	 	 	 	22.1	%	 	 	9,337	 	 	 	3.9	%	 	 	1,540	 	 	 	6.6	%	 	 	51,681	 	 	 	4.8	%
	5112510 · House Attendant	 	 	3,204	 	 	 	1.2	%	 	 	3,104	 	 	 	1.2	%	 	 	99	 	 	 	1.7	%	 	 	2,872	 	 	 	1.2	%	 	 	332	 	 	 	1.4	%	 	 	16,395	 	 	 	1.5	%
	5112520 · Laundry Attendant	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	5112530 · Lead Room Supervisor	 	 	6,663	 	 	 	2.6	%	 	 	-	 	 	 	0.0	%	 	 	6,663	 	 	 	116.5	%	 	 	5,752	 	 	 	2.4	%	 	 	911	 	 	 	3.9	%	 	 	21,385	 	 	 	2.0	%
	5112540 · Housekeeping
    Supervisor	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	5112600 · House Attendant
    II	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	5112599 · Housekeeping-Other
    Pay	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	Total 5112000 . Housekeeping	 	 	26,377	 	 	 	10.1	%	 	 	22,824	 	 	 	9.0	%	 	 	3,553	 	 	 	62.1	%	 	 	21,862	 	 	 	9.2	%	 	 	4,515	 	 	 	19.4	%	 	 	106,609	 	 	 	9.9	%
	5150 . Rooms Taxes & Benefits	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5199 · Rooms Shared Serv
    Fringe	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	5151 · Rms Payroll Taxes	 	 	2,680	 	 	 	1.0	%	 	 	7,515	 	 	 	3.0	%	 	 	(4,835	)	 	 	-84.5	%	 	 	2,198	 	 	 	0.9	%	 	 	482	 	 	 	2.1	%	 	 	7,859	 	 	 	0.7	%
	5152 · Rms Workers'  Comp	 	 	480	 	 	 	0.2	%	 	 	526	 	 	 	0.2	%	 	 	(47	)	 	 	-0.8	%	 	 	238	 	 	 	0.1	%	 	 	242	 	 	 	1.0	%	 	 	1,572	 	 	 	0.1	%
	5153 · Rms Employ Benefits	 	 	961	 	 	 	0.4	%	 	 	2,362	 	 	 	0.9	%	 	 	(1,401	)	 	 	-24.5	%	 	 	3,233	 	 	 	1.4	%	 	 	(2,272	)	 	 	-9.8	%	 	 	2,946	 	 	 	0.3	%
	5155 · Rms PTO	 	 	1,010	 	 	 	0.4	%	 	 	1,730	 	 	 	0.7	%	 	 	(719	)	 	 	-12.6	%	 	 	386	 	 	 	0.2	%	 	 	625	 	 	 	2.7	%	 	 	1,572	 	 	 	0.1	%
	5156 ·
    Rms Employ Meals	 	 	195	 	 	 	0.1	%	 	 	379	 	 	 	0.1	%	 	 	(184	)	 	 	-3.2	%	 	 	282	 	 	 	0.1	%	 	 	(86	)	 	 	-0.4	%	 	 	6,069	 	 	 	0.6	%
	Total 5150 . Rooms Taxes & Benefits	 	 	5,326	 	 	 	2.0	%	 	 	12,512	 	 	 	4.9	%	 	 	(7,185	)	 	 	-125.6	%	 	 	6,336	 	 	 	2.7	%	 	 	(1,010	)	 	 	-4.3	%	 	 	20,018	 	 	 	1.9	%
	5250 . Housekeeping Taxes & Ben	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5250 · Housekeeping Taxes
    & Ben - Other	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	5251 · Housekeeping payroll
    taxes	 	 	5,842	 	 	 	2.2	%	 	 	-	 	 	 	0.0	%	 	 	5,842	 	 	 	102.1	%	 	 	4,448	 	 	 	1.9	%	 	 	1,394	 	 	 	6.0	%	 	 	10,661	 	 	 	1.0	%
	5252 · Housekeeping Workmans
    Comp	 	 	322	 	 	 	0.1	%	 	 	-	 	 	 	0.0	%	 	 	322	 	 	 	5.6	%	 	 	109	 	 	 	0.0	%	 	 	214	 	 	 	0.9	%	 	 	2,665	 	 	 	0.2	%
	5253 · Housekeeping employee
    bene	 	 	397	 	 	 	0.2	%	 	 	-	 	 	 	0.0	%	 	 	397	 	 	 	6.9	%	 	 	-	 	 	 	0.0	%	 	 	397	 	 	 	1.7	%	 	 	1,176	 	 	 	0.1	%
	5255 · Housekeeping PTO
    Expense	 	 	971	 	 	 	0.4	%	 	 	-	 	 	 	0.0	%	 	 	971	 	 	 	17.0	%	 	 	205	 	 	 	0.1	%	 	 	766	 	 	 	3.3	%	 	 	3,198	 	 	 	0.3	%
	5256 · Hskpg - Employee
    Meals	 	 	449	 	 	 	0.2	%	 	 	-	 	 	 	0.0	%	 	 	449	 	 	 	7.8	%	 	 	-	 	 	 	0.0	%	 	 	449	 	 	 	1.9	%	 	 	2,985	 	 	 	0.3	%
	5257 ·
    Shared PTO Expense	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	Total 5250 . Housekeeping
    Taxes & Ben	 	 	7,981	 	 	 	3.1	%	 	 	-	 	 	 	0.0	%	 	 	7,981	 	 	 	139.5	%	 	 	4,762	 	 	 	2.0	%	 	 	3,219	 	 	 	13.8	%	 	 	20,685	 	 	 	1.9	%
	Total 5100000 . Rooms Payroll	 	 	62,513	 	 	 	24.0	%	 	 	54,541	 	 	 	21.4	%	 	 	7,972	 	 	 	139.3	%	 	 	51,940	 	 	 	21.9	%	 	 	10,573	 	 	 	45.5	%	 	 	208,127	 	 	 	19.4	%
	Total 5000 . Payroll &
    Benefits	 	 	62,513	 	 	 	24.0	%	 	 	54,541	 	 	 	21.4	%	 	 	7,972	 	 	 	139.3	%	 	 	51,940	 	 	 	21.9	%	 	 	10,573	 	 	 	45.5	%	 	 	208,127	 	 	 	19.4	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	8100 . Rooms  Expenses	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.0	%	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	8101 · Comp Breakfast	 	 	22,065	 	 	 	8.5	%	 	 	20,300	 	 	 	8.0	%	 	 	1,765	 	 	 	30.9	%	 	 	16,172	 	 	 	6.8	%	 	 	5,893	 	 	 	25.4	%	 	 	33,860	 	 	 	3.2	%
	8110 · Guest Supplies	 	 	2,960	 	 	 	1.1	%	 	 	2,500	 	 	 	1.0	%	 	 	459	 	 	 	8.0	%	 	 	2,654	 	 	 	1.1	%	 	 	306	 	 	 	1.3	%	 	 	12,875	 	 	 	1.2	%
	8111 · In-Room Equipment	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8112 · Guest Relations	 	 	62	 	 	 	0.0	%	 	 	72	 	 	 	0.0	%	 	 	(10	)	 	 	-0.2	%	 	 	72	 	 	 	0.0	%	 	 	(10	)	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8114 · Guest Amenities	 	 	43	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	43	 	 	 	0.8	%	 	 	-	 	 	 	0.0	%	 	 	43	 	 	 	0.2	%	 	 	-	 	 	 	0.0	%
	8115 · Operating Supplies	 	 	639	 	 	 	0.2	%	 	 	596	 	 	 	0.2	%	 	 	43	 	 	 	0.7	%	 	 	407	 	 	 	0.2	%	 	 	232	 	 	 	1.0	%	 	 	2,895	 	 	 	0.3	%
	8117 · Newspapers	 	 	203	 	 	 	0.1	%	 	 	565	 	 	 	0.2	%	 	 	(362	)	 	 	-6.3	%	 	 	281	 	 	 	0.1	%	 	 	(78	)	 	 	-0.3	%	 	 	495	 	 	 	0.0	%
	8120 · Cleaning Supplies	 	 	226	 	 	 	0.1	%	 	 	232	 	 	 	0.1	%	 	 	(6	)	 	 	-0.1	%	 	 	257	 	 	 	0.1	%	 	 	(31	)	 	 	-0.1	%	 	 	1,187	 	 	 	0.1	%
	8129 · Linens	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8130 · Outside Laundry	 	 	20,068	 	 	 	7.7	%	 	 	19,781	 	 	 	7.8	%	 	 	286	 	 	 	5.0	%	 	 	20,782	 	 	 	8.8	%	 	 	(715	)	 	 	-3.1	%	 	 	52,305	 	 	 	4.9	%
	8135 · Uniforms	 	 	304	 	 	 	0.1	%	 	 	634	 	 	 	0.2	%	 	 	(331	)	 	 	-5.8	%	 	 	526	 	 	 	0.2	%	 	 	(222	)	 	 	-1.0	%	 	 	1,873	 	 	 	0.2	%
	8149 · Group Commissions	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8150 · TA Commissions	 	 	750	 	 	 	0.3	%	 	 	946	 	 	 	0.4	%	 	 	(197	)	 	 	-3.4	%	 	 	946	 	 	 	0.4	%	 	 	(196	)	 	 	-0.8	%	 	 	4,608	 	 	 	0.4	%
	8151 · Computer Maint
    & Supp	 	 	1,234	 	 	 	0.5	%	 	 	1,616	 	 	 	0.6	%	 	 	(382	)	 	 	-6.7	%	 	 	1,171	 	 	 	0.5	%	 	 	63	 	 	 	0.3	%	 	 	4,116	 	 	 	0.4	%
	8152 · Auto Expense (van)	 	 	200	 	 	 	0.1	%	 	 	-	 	 	 	0.0	%	 	 	200	 	 	 	3.5	%	 	 	-	 	 	 	0.0	%	 	 	200	 	 	 	0.9	%	 	 	588	 	 	 	0.1	%
	8155 · Reservation Expense	 	 	5,141	 	 	 	2.0	%	 	 	3,259	 	 	 	1.3	%	 	 	1,882	 	 	 	32.9	%	 	 	3,769	 	 	 	1.6	%	 	 	1,371	 	 	 	5.9	%	 	 	14,700	 	 	 	1.4	%
	8156 · Concierge Expenses	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8157 · Walk Expense	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8158 · Equipment Repair	 	 	34	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	34	 	 	 	0.6	%	 	 	-	 	 	 	0.0	%	 	 	34	 	 	 	0.1	%	 	 	5,364	 	 	 	0.5	%
	8164 · Decorations	 	 	-	 	 	 	0.0	%	 	 	129	 	 	 	0.1	%	 	 	(129	)	 	 	-2.3	%	 	 	1,978	 	 	 	0.8	%	 	 	(1,978	)	 	 	-8.5	%	 	 	288	 	 	 	0.0	%
	8165 · Comp In-Room Coffee	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8170 · Contract Labor	 	 	42	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	42	 	 	 	0.7	%	 	 	-	 	 	 	0.0	%	 	 	42	 	 	 	0.2	%	 	 	-	 	 	 	0.0	%
	8174 · Music & Entertainment	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8175 · Cable TV	 	 	2,527	 	 	 	1.0	%	 	 	2,225	 	 	 	0.9	%	 	 	302	 	 	 	5.3	%	 	 	1,640	 	 	 	0.7	%	 	 	887	 	 	 	3.8	%	 	 	12,960	 	 	 	1.2	%
	8178 · Express Mail	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8184 · Printing	 	 	245	 	 	 	0.1	%	 	 	283	 	 	 	0.1	%	 	 	(38	)	 	 	-0.7	%	 	 	280	 	 	 	0.1	%	 	 	(35	)	 	 	-0.2	%	 	 	588	 	 	 	0.1	%
	8185 · Telephone Cell
    & Radio	 	 	126	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	126	 	 	 	2.2	%	 	 	139	 	 	 	0.1	%	 	 	(14	)	 	 	-0.1	%	 	 	300	 	 	 	0.0	%
	8190 · Office Supplies	 	 	285	 	 	 	0.1	%	 	 	517	 	 	 	0.2	%	 	 	(232	)	 	 	-4.1	%	 	 	663	 	 	 	0.3	%	 	 	(377	)	 	 	-1.6	%	 	 	1,176	 	 	 	0.1	%
	8191 · Employee Relations	 	 	36	 	 	 	0.0	%	 	 	73	 	 	 	0.0	%	 	 	(37	)	 	 	-0.7	%	 	 	61	 	 	 	0.0	%	 	 	(26	)	 	 	-0.1	%	 	 	1,476	 	 	 	0.1	%
	8192 · Building Rent -
    Housekee	 	 	-	 	 	 	0.0	%	 	 	1,731	 	 	 	0.7	%	 	 	(1,731	)	 	 	-30.2	%	 	 	1,680	 	 	 	0.7	%	 	 	(1,680	)	 	 	-7.2	%	 	 	5,880	 	 	 	0.5	%
	8193 · License & Permits	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	300	 	 	 	0.0	%
	8195 · Equipment Lease	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	133	 	 	 	0.1	%	 	 	(133	)	 	 	-0.6	%	 	 	289	 	 	 	0.0	%
	8196 · Business Travel	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8197 · Business Meals	 	 	-	 	 	 	0.0	%	 	 	66	 	 	 	0.0	%	 	 	(66	)	 	 	-1.2	%	 	 	77	 	 	 	0.0	%	 	 	(77	)	 	 	-0.3	%	 	 	-	 	 	 	0.0	%
	8225 ·
    Laundry Expense	 	 	4	 	 	 	0.0	%	 	 	13	 	 	 	0.0	%	 	 	(9	)	 	 	-0.2	%	 	 	8	 	 	 	0.0	%	 	 	(4	)	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	Total 8100 . Rooms  Expenses	 	 	57,191	 	 	 	22.0	%	 	 	55,539	 	 	 	21.8	%	 	 	1,653	 	 	 	28.9	%	 	 	53,697	 	 	 	22.7	%	 	 	3,494	 	 	 	15.0	%	 	 	158,123	 	 	 	14.7	%
	Total Expense	 	 	119,704	 	 	 	46.0	%	 	 	110,079	 	 	 	43.3	%	 	 	9,625	 	 	 	168.2	%	 	 	105,637	 	 	 	44.6	%	 	 	14,067	 	 	 	60.5	%	 	 	366,250	 	 	 	34.1	%
	Net Income	 	 	140,487	 	 	 	54.0	%	 	 	144,391	 	 	 	56.7	%	 	 	(3,904	)	 	 	-68.2	%	 	 	131,309	 	 	 	55.4	%	 	 	9,178	 	 	 	39.5	%	 	 	708,334	 	 	 	65.9	%

 

 

 

	 	Page 5 of 19	109.3. Ex 18(a)- 3rd Part - Orchards Annex March 13 Issue

 

    	 

    	 

     

 

Orchards Annex, LLC

Rooms Department

January through March 2013

 

	 	 	Jan 13	 	 	Feb 13	 	 	Mar 13	 	 	TOTAL	 
	Ordinary Income/Expense	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Income	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4100 · Room Charges	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4110 · Transient Room charges	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4111 · Best Available Rate	 	 	4,575.60	 	 	 	22,115.20	 	 	 	45,485.60	 	 	 	72,176.40	 
	4114 · Discount	 	 	46,060.65	 	 	 	41,086.30	 	 	 	83,417.35	 	 	 	170,564.30	 
	4115·FIT/Internet	 	 	189.00	 	 	 	5,025.46	 	 	 	8,968.35	 	 	 	14,182.81	 
	Total 4110 · Transient Room charges	 	 	50,825.25	 	 	 	68,226.96	 	 	 	137,871.30	 	 	 	256,923.51	 
	4150 · Group	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4151 · Group Association	 	 	225.00	 	 	 	190.00	 	 	 	920.00	 	 	 	1,335.00	 
	4152 · Group Corporate	 	 	0.00	 	 	 	250.00	 	 	 	0.00	 	 	 	250.00	 
	4154·Group-Tour	 	 	0.00	 	 	 	909.00	 	 	 	774.00	 	 	 	1,683.00	 
	Total 4150 · Group	 	 	225.00	 	 	 	1,349.00	 	 	 	1,694.00	 	 	 	3,268.00	 
	Total 4100 · Room Charges	 	 	51,050.25	 	 	 	69,575.96	 	 	 	139,565.30	 	 	 	260,191.51	 
	Total Income	 	 	51,050.25	 	 	 	69,575.96	 	 	 	139,565.30	 	 	 	260,191.51	 
	Gross Profit	 	 	51,050.25	 	 	 	69,575.96	 	 	 	139,565.30	 	 	 	260,191.51	 
	Expense	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5000 · Payroll & Benefits	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5100000 · Rooms Payroll	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5111000 · Front Office	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5111160 · Assistant Manager	 	 	1,184.62	 	 	 	1,304.01	 	 	 	2,032.47	 	 	 	4,521.10	 
	5111600 · Guest Service Agents	 	 	2,191.85	 	 	 	2,863.83	 	 	 	4,262.68	 	 	 	9,318.36	 
	5111605 · Reservationist	 	 	788.48	 	 	 	619.36	 	 	 	1,212.81	 	 	 	2,620.65	 
	5111606 · Reservationist - Bonus	 	 	154.00	 	 	 	220.00	 	 	 	154.00	 	 	 	528.00	 
	5111610 · Lead Service Agent	 	 	75.97	 	 	 	270.75	 	 	 	-550.00	 	 	 	-203.28	 
	5111640 · Night Auditor	 	 	1,731.81	 	 	 	1,694.25	 	 	 	2,618.07	 	 	 	6,044.13	 
	Total 5111000 · Front Office	 	 	6,126.73	 	 	 	6,972.20	 	 	 	9,730.03	 	 	 	22,828.96	 
	5112000 · Housekeeping	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5112170 · Housekeeping Manager	 	 	1,424.06	 	 	 	1,955.11	 	 	 	2,253.87	 	 	 	5,633.04	 
	5112500 · Room Attendent	 	 	2,667.39	 	 	 	2,719.75	 	 	 	5,490.38	 	 	 	10,877.52	 
	5112510 · House Attendant	 	 	913.50	 	 	 	882.25	 	 	 	1,408.00	 	 	 	3,203.75	 
	5112530 · Lead Room Supervisor	 	 	1,773.88	 	 	 	1,863.01	 	 	 	3,025.95	 	 	 	6,662.84	 
	Total 5112000 · Housekeeping	 	 	6,778.83	 	 	 	7,420.12	 	 	 	12,178.20	 	 	 	26,377.15	 
	5150 · Rooms Taxes & Benefits	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5151 · Rms Payroll Taxes	 	 	967.74	 	 	 	730.91	 	 	 	981.28	 	 	 	2,679.93	 
	5152 · Rms Workers'  Comp	 	 	100.53	 	 	 	100.53	 	 	 	278.76	 	 	 	479.82	 
	5153 · Rms Employ Benefits	 	 	321.38	 	 	 	189.63	 	 	 	449.92	 	 	 	960.93	 
	5155 · Rms PTO	 	 	687.23	 	 	 	211.63	 	 	 	111.43	 	 	 	1,010.29	 
	5156 · Rms Employ Meals	 	 	60.20	 	 	 	51.64	 	 	 	83.60	 	 	 	195.44	 
	Total 5150 · Rooms Taxes & Benefits	 	 	2,137.08	 	 	 	1,284.34	 	 	 	1,904.99	 	 	 	5,326.41	 
	5250 · Housekeeping Taxes & Ben	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5251 · Housekeeping payroll taxes	 	 	1,905.39	 	 	 	1,537.57	 	 	 	2,398.81	 	 	 	5,841.77	 
	5252 · Housekeeping Workmans Comp	 	 	157.04	 	 	 	165.09	 	 	 	0.00	 	 	 	322.13	 
	5253 · Housekeeping employee bene	 	 	135.89	 	 	 	142.85	 	 	 	117.98	 	 	 	396.72	 
	5255 · Housekeeping PTO Expense	 	 	589.85	 	 	 	207.50	 	 	 	173.85	 	 	 	971.20	 
	5256 · Hskpg - Employee Meals	 	 	129.08	 	 	 	116.40	 	 	 	203.46	 	 	 	448.94	 
	Total 5250 · Housekeeping Taxes & Ben	 	 	2,917.25	 	 	 	2,169.41	 	 	 	2,894.10	 	 	 	7,980.76	 
	Total 5100000 · Rooms Payroll	 	 	17,959.89	 	 	 	17,846.07	 	 	 	26,707.32	 	 	 	62,513.28	 
	Total 5000 · Payroll & Benefits	 	 	17,959.89	 	 	 	17,846.07	 	 	 	26,707.32	 	 	 	62,513.28	 
	8100 · Rooms  Expenses	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	8101 · Comp Breakfast	 	 	4,829.80	 	 	 	6,518.19	 	 	 	10,717.09	 	 	 	22,065.08	 
	8110 · Guest Supplies	 	 	593.12	 	 	 	1,036.76	 	 	 	1,329.65	 	 	 	2,959.53	 
	8112 · Guest Relations	 	 	22.96	 	 	 	23.11	 	 	 	16.23	 	 	 	62.30	 
	8114 · Guest Amenities	 	 	0.00	 	 	 	20.74	 	 	 	22.39	 	 	 	43.13	 
	8115 · Operating Supplies	 	 	356.85	 	 	 	121.66	 	 	 	160.37	 	 	 	638.88	 
	8117 · Newspapers	 	 	0.00	 	 	 	136.38	 	 	 	66.47	 	 	 	202.85	 
	8120 · Cleaning Supplies	 	 	0.00	 	 	 	170.84	 	 	 	54.92	 	 	 	225.76	 
	8130 · Outside Laundry	 	 	4,877.46	 	 	 	6,182.93	 	 	 	9,007.18	 	 	 	20,067.57	 
	8135 · Uniforms	 	 	137.19	 	 	 	101.86	 	 	 	64.77	 	 	 	303.82	 
	8150 · TA Commissions	 	 	104.51	 	 	 	375.85	 	 	 	269.46	 	 	 	749.82	 
	8151 · Computer Maint & Supp	 	 	410.43	 	 	 	395.85	 	 	 	427.38	 	 	 	1,233.66	 
	8152 · Auto Expense (van)	 	 	33.87	 	 	 	89.01	 	 	 	76.88	 	 	 	199.76	 
	8155 · Reservation Expense	 	 	1,087.45	 	 	 	1,385.32	 	 	 	2,667.73	 	 	 	5,140.50	 
	8158 · Equipment Repair	 	 	33.87	 	 	 	0.00	 	 	 	0.00	 	 	 	33.87	 
	8170 · Contract Labor	 	 	0.00	 	 	 	0.00	 	 	 	42.13	 	 	 	42.13	 
	8175 · Cable TV	 	 	743.86	 	 	 	739.72	 	 	 	1,043.10	 	 	 	2,526.68	 
	8184 · Printing	 	 	13.73	 	 	 	200.26	 	 	 	30.74	 	 	 	244.73	 
	8185 · Telephone Cell & Radio	 	 	33.87	 	 	 	53.40	 	 	 	38.44	 	 	 	125.71	 
	8190 · Office Supplies	 	 	95.30	 	 	 	47.09	 	 	 	142.92	 	 	 	285.31	 
	8191 · Employee Relations	 	 	11.85	 	 	 	0.00	 	 	 	23.83	 	 	 	35.68	 
	8225 · Laundry Expense	 	 	4.40	 	 	 	0.00	 	 	 	0.00	 	 	 	4.40	 
	Total 8100 · Rooms  Expenses	 	 	13,390.52	 	 	 	17,598.97	 	 	 	26,201.68	 	 	 	57,191.17	 
	Total Expense	 	 	31,350.41	 	 	 	35,445.04	 	 	 	52,909.00	 	 	 	119,704.45	 
	Net Ordinary Income	 	 	19,699.84	 	 	 	34,130.92	 	 	 	86,656.30	 	 	 	140,487.06	 
	Net Income	 	 	19,699.84	 	 	 	34,130.92	 	 	 	86,656.30	 	 	 	140,487.06	 

 

 

	 	Page 6 of 19	109.3. Ex 18(a)- 3rd Part - Orchards Annex March 13 Issue / Rooms

 

    	 

    	 

     

Orchards Annex

Miscellaneous Department

Actual vs. Budget and Prior Year

March 2013

 

	 	 	 	 
	 	 	Current
    Month	 
	 	 	Actual	 	 	%
    to 
Revenue	 	 	Budget	 	 	%
    to 
Revenue	 	 	Variance	 	 	%
    to 
Revenue	 	 	Prior
    Year	 	 	%
    to 
Revenue	 	 	Variance	 	 	%
    to 
Revenue	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Revenue	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4500 . Miscellaneous Revenue	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4520 · Other
    Miscellaneous	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0	%
	Total 4500 . Miscellaneous
    Revenue	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0	%
	Total Revenue	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Cost of Goods Sold	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	6400 · Cost of Telephone	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	6401 · Long Distance	 	 	26	 	 	 	0.0	%	 	 	497	 	 	 	0.0	%	 	 	(471	)	 	 	0	%	 	 	482	 	 	 	0.0	%	 	 	(456	)	 	 	0	%
	6402 ·
    Local Phone Calls	 	 	313	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	313	 	 	 	0	%	 	 	-	 	 	 	0.0	%	 	 	313	 	 	 	0	%
	Total 6400 · Cost of
    Telephone	 	 	339	 	 	 	0.0	%	 	 	497	 	 	 	0.0	%	 	 	(158	)	 	 	0	%	 	 	-	 	 	 	0.0	%	 	 	339	 	 	 	0	%
	Total COGS	 	 	339	 	 	 	0.0	%	 	 	497	 	 	 	0.0	%	 	 	(158	)	 	 	0	%	 	 	482	 	 	 	0.0	%	 	 	(143	)	 	 	0	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Gross Profit	 	 	(339	)	 	 	0.0	%	 	 	(497	)	 	 	0.0	%	 	 	158	 	 	 	0	%	 	 	(482	)	 	 	0.0	%	 	 	143	 	 	 	0	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Expense	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Net Income	 	 	(339	)	 	 	0.0	%	 	 	(497	)	 	 	0	%	 	 	158	 	 	 	0	%	 	 	(482	)	 	 	0.0	%	 	 	143	 	 	 	0	%

 

	 	 	 	 	 	Budget	 
	 	 	Year
                                                                                                                to Date	 	 	Full
                                                                                                                                                                                                                                                                                                                                                                                                             Year	 
	 	 	Actual	 	 	%
                                                                                                                                                                                                                                                                                                                                                       to
                                                                                                                                                                                                                                                                                                                                                       
Revenue	 	 	Budget	 	 	%
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              to
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
Revenue	 	 	Variance	 	 	%
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              to
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
Revenue	 	 	Prior
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Year	 	 	%
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              to
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
Revenue	 	 	Variance	 	 	%
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              to
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
Revenue	 	 	Amount	 	 	%
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              to
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
Revenue	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Revenue	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4500 . Miscellaneous Revenue	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	4520 · Other
    Miscellaneous	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0	%	 	 	0.00	 	 	 	0.0	%	 	 	-	 	 	 	0	%	 	 	-	 	 	 	0.0	%
	Total 4500 . Miscellaneous
    Revenue	 	 	-	 	 	 	0.0	%	 	 	0.00	 	 	 	0.0	%	 	 	-	 	 	 	0	%	 	 	0.00	 	 	 	0.0	%	 	 	-	 	 	 	0	%	 	 	-	 	 	 	0.0	%
	Total Revenue	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0	%	 	 	-	 	 	 	0.0	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Cost of Goods Sold	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	6400 · Cost of Telephone	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	6401 · Long Distance	 	 	(49	)	 	 	0.0	%	 	 	927	 	 	 	0.0	%	 	 	(976	)	 	 	0	%	 	 	1,085.77	 	 	 	0.0	%	 	 	(1,135	)	 	 	0	%	 	 	3,132	 	 	 	0.0	%
	6402 ·
    Local Phone Calls	 	 	988	 	 	 	0.0	%	 	 	353	 	 	 	0.0	%	 	 	635	 	 	 	0	%	 	 	490.24	 	 	 	0.0	%	 	 	498	 	 	 	0	%	 	 	2,184	 	 	 	0.0	%
	Total 6400 · Cost of
    Telephone	 	 	939	 	 	 	0.0	%	 	 	1,280	 	 	 	0.0	%	 	 	(341	)	 	 	0	%	 	 	1,576	 	 	 	0.0	%	 	 	(637	)	 	 	0	%	 	 	5,316	 	 	 	0.0	%
	Total COGS	 	 	939	 	 	 	0.0	%	 	 	1,280	 	 	 	0.0	%	 	 	(341	)	 	 	0	%	 	 	1,576	 	 	 	0.0	%	 	 	(637	)	 	 	0	%	 	 	5,316	 	 	 	0.0	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Gross Profit	 	 	(939	)	 	 	0.0	%	 	 	(1,280	)	 	 	0.0	%	 	 	341	 	 	 	0	%	 	 	(1,576	)	 	 	0.0	%	 	 	637	 	 	 	0	%	 	 	(5,316	)	 	 	0.0	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Expense	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Net Income	 	 	(939	)	 	 	0.0	%	 	 	(1,280	)	 	 	0.0	%	 	 	341	 	 	 	0	%	 	 	(1,576	)	 	 	0.0	%	 	 	637	 	 	 	0	%	 	 	(5,316	)	 	 	0.0	%

 

 

 

	 	Page 7 of 19	109.3. Ex 18(a)- 3rd Part - Orchards Annex March 13 Issue

 

    	 

    	 

     

 

Orchards Annex, LLC

Miscellaneous Department

January through March 2013

 

	 	 	Jan 13	 	 	Feb 13	 	 	Mar 13	 	 	TOTAL	 
	Ordinary Income/Expense	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Cost of Goods Sold	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	6400 · Cost of Telephone	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	6401 · Long Distance	 	 	-69.37	 	 	 	-5.94	 	 	 	26.05	 	 	 	-49.26	 
	6402 · Local Phone Calls	 	 	352.94	 	 	 	322.19	 	 	 	313.20	 	 	 	988.33	 
	Total 6400 · Cost of Telephone	 	 	283.57	 	 	 	316.25	 	 	 	339.25	 	 	 	939.07	 
	Total COGS	 	 	283.57	 	 	 	316.25	 	 	 	339.25	 	 	 	939.07	 
	Gross Profit	 	 	-283.57	 	 	 	-316.25	 	 	 	-339.25	 	 	 	-939.07	 
	Net Ordinary Income	 	 	-283.57	 	 	 	-316.25	 	 	 	-339.25	 	 	 	-939.07	 
	Net Income	 	 	-283.57	 	 	 	-316.25	 	 	 	-339.25	 	 	 	-939.07	 

 

 

	 	Page 8 of 19	109.3. Ex 18(a)- 3rd Part - Orchards Annex March 13 Issue / Misc

 

    	 

    	 

     

 

	4:05 PM	Orchards Annex, LLC	 
	04/24/13	Management Fee Expense	 
	Accrual Basis	January through March 2013	 

 

 

 

	 	 	Type	 	Date	 	Num	 	Adj	 	Name	 	Memo	 	Clr	 	Split	 	Debit	 	 	Credit	 	 	Balance	 
	9500 · Management Fees	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	Bill	 	01/04/2013	 	Jan MF	 	 	 	Spector Offices	 	 	 	 	 	2000 · Accounts Payable	 	 	1,531.51	 	 	 	 	 	 	 	1,531.51	 
	 	 	Bill	 	02/01/2013	 	Feb Man Fee	 	 	 	Spector Offices	 	 	 	 	 	2000 · Accounts Payable	 	 	4,000.00	 	 	 	 	 	 	 	5,531.51	 
	 	 	Credit	 	02/28/2013	 	Feb Man Fee	 	 	 	Spector Offices	 	Adjust Feb Management Fee to 3% of Income of $69575.96	 	 	 	2000 · Accounts Payable	 	 	 	 	 	 	1,912.72	 	 	 	3,618.79	 
	 	 	Bill	 	03/01/2013	 	March Management Fee	 	 	 	Spector Offices	 	March MF	 	 	 	2000 · Accounts Payable	 	 	3,000.00	 	 	 	 	 	 	 	6,618.79	 
	 	 	General Journal	 	03/31/2013	 	Mgmt Fee	 	 	 	 	 	Record Additional Mgmt Fee for March - 3% on Revenue of $139,539.25 less $3,000 prepaid	 	 	 	1263 · Spector Offices	 	 	1,186.17	 	 	 	 	 	 	 	7,804.96	 
	Total 9500 · Management Fees	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	9,717.68	 	 	 	1,912.72	 	 	 	7,804.96	 
	TOTAL	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	9,717.68	 	 	 	1,912.72	 	 	 	7,804.96	 

 

 

	 	Page 9 of 19	 

  

    	 

    	 

     

Orchards Annex

Administrative and General Department

Actual vs. Budget and Prior Year

March 2013

 

	 	 	 	 
	 	 	Current
                                          Month	 
	 	 	Actual	 	 	%
                                                                                                                                                                                                                                                                                                                                      to
                                                                                                                                                                                                                                                                                                                                      
Revenue	 	 	Budget	 	 	%
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              to
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
Revenue	 	 	Variance	 	 	%
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              to
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
Revenue	 	 	Prior
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Year	 	 	%
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              to
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
Revenue	 	 	Variance	 	 	%
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              to
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
Revenue	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Expense	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5000 . Payroll
    & Benefits	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5600000 . G&A Payroll	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5684000 . Finance Salaries	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5684100 ·
    Controller	 	 	(792	)	 	 	-0.6	%	 	 	1,494	 	 	 	1.1	%	 	 	(2,286	)	 	 	-29.1	%	 	 	1,313	 	 	 	1.1	%	 	 	(2,104	)	 	 	-11.1	%
	5684110
    · Assistant Controller	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	590	 	 	 	0.5	%	 	 	(590	)	 	 	-3.1	%
	5684130
    · Coordinator	 	 	2,135	 	 	 	1.5	%	 	 	-	 	 	 	0.0	%	 	 	2,135	 	 	 	27.2	%	 	 	(67	)	 	 	-0.1	%	 	 	2,202	 	 	 	11.6	%
	Total 5684000 . Finance
    Salaries	 	 	1,343	 	 	 	1.0	%	 	 	1,494	 	 	 	1.1	%	 	 	(151	)	 	 	-1.9	%	 	 	1,836	 	 	 	1.5	%	 	 	(493	)	 	 	-2.6	%
	5686000 . G&A Salaries
    & Wages	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.0	%	 	 	 	 	 	 	 	 
	5686130
    · G & A Coordinator	 	 	141	 	 	 	0.1	%	 	 	-	 	 	 	0.0	%	 	 	141	 	 	 	1.8	%	 	 	(32	)	 	 	0.0	%	 	 	173	 	 	 	0.9	%
	5686150
    · G & A Supervisor	 	 	341	 	 	 	0.2	%	 	 	-	 	 	 	0.0	%	 	 	341	 	 	 	4.3	%	 	 	376	 	 	 	0.3	%	 	 	(36	)	 	 	-0.2	%
	5686160
    · G & A Asst Manager	 	 	(176	)	 	 	-0.1	%	 	 	-	 	 	 	0.0	%	 	 	(176	)	 	 	-2.2	%	 	 	-	 	 	 	0.0	%	 	 	(176	)	 	 	-0.9	%
	5686180
    · G & A Director	 	 	537	 	 	 	0.4	%	 	 	-	 	 	 	0.0	%	 	 	537	 	 	 	6.8	%	 	 	446	 	 	 	0.4	%	 	 	92	 	 	 	0.5	%
	5686190
    · G & A General Manager	 	 	3,442	 	 	 	2.5	%	 	 	4,104	 	 	 	3.1	%	 	 	(662	)	 	 	-8.4	%	 	 	2,662	 	 	 	2.2	%	 	 	780	 	 	 	4.1	%
	5686199
    · G & A Shared Services	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	456	 	 	 	0.4	%	 	 	(456	)	 	 	-2.4	%
	5686699
    · G&A Other Pay	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	Total 5686000 . G&A
    Salaries & Wages	 	 	4,285	 	 	 	3.1	%	 	 	4,104	 	 	 	3.1	%	 	 	181	 	 	 	2.3	%	 	 	3,909	 	 	 	3.2	%	 	 	377	 	 	 	2.0	%
	5686050 . G&A Taxes
    and Benefit	 	 	 	 	 	 	0.0	%	 	 	 	 	 	 	0.0	%	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.0	%	 	 	 	 	 	 	 	 
	5651
    · G&A Payroll Taxes	 	 	227	 	 	 	0.2	%	 	 	688	 	 	 	0.5	%	 	 	(461	)	 	 	-5.9	%	 	 	655	 	 	 	0.5	%	 	 	(429	)	 	 	-2.3	%
	5652
    · G&A Workers' Comp	 	 	7	 	 	 	0.0	%	 	 	4	 	 	 	0.0	%	 	 	2	 	 	 	0.0	%	 	 	4	 	 	 	0.0	%	 	 	2	 	 	 	0.0	%
	5653
    · G&A Employ Benefits	 	 	105	 	 	 	0.1	%	 	 	202	 	 	 	0.2	%	 	 	(97	)	 	 	-1.2	%	 	 	192	 	 	 	0.2	%	 	 	(87	)	 	 	-0.5	%
	5655 · G&A
    PTO	 	 	57	 	 	 	0.0	%	 	 	99	 	 	 	0.1	%	 	 	(42	)	 	 	-0.5	%	 	 	95	 	 	 	0.1	%	 	 	(38	)	 	 	-0.2	%
	5656
    · G&A Empoy Meals	 	 	13	 	 	 	0.0	%	 	 	510	 	 	 	0.4	%	 	 	(497	)	 	 	-6.3	%	 	 	486	 	 	 	0.4	%	 	 	(473	)	 	 	-2.5	%
	5699
    · G&A Shared Services Fringes	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	Total
    5686050 . G&A Taxes and Benefit	 	 	409	 	 	 	0.3	%	 	 	1,504	 	 	 	1.1	%	 	 	(1,096	)	 	 	-14.0	%	 	 	1,433	 	 	 	1.2	%	 	 	(1,024	)	 	 	-5.4	%
	Total
    5600000 . G&A Payroll	 	 	4,694	 	 	 	3.4	%	 	 	5,608	 	 	 	4.3	%	 	 	(914	)	 	 	-11.7	%	 	 	5,341	 	 	 	4.4	%	 	 	(647	)	 	 	-3.4	%
	Total 5000 . Payroll &
    Benefits	 	 	6,037	 	 	 	4.3	%	 	 	7,102	 	 	 	5.4	%	 	 	(1,065	)	 	 	-13.6	%	 	 	7,177	 	 	 	5.9	%	 	 	(1,140	)	 	 	-6.0	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	8600 . General & Administrative	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	8661
    · Charitable Contributions	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8601
    · Workman's Comp Adjust	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8602
    · Sales Tax Expense	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8604
    · Tax Penalties & Fees	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8610
    · IT Support	 	 	56	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	56	 	 	 	0.7	%	 	 	79	 	 	 	0.1	%	 	 	(23	)	 	 	-0.1	%
	8635 · Uniforms	 	 	48	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	48	 	 	 	0.6	%	 	 	-	 	 	 	0.0	%	 	 	48	 	 	 	0.3	%
	8650 · Maint/Service
    Contract	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8651
    · Computer Maint & Support	 	 	27	 	 	 	0.0	%	 	 	1,922	 	 	 	1.5	%	 	 	(1,895	)	 	 	-24.2	%	 	 	1,717	 	 	 	1.4	%	 	 	(1,690	)	 	 	-8.9	%
	8660
    · Legal Fees	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8672
    · Accounting Fees	 	 	-	 	 	 	0.0	%	 	 	404	 	 	 	0.3	%	 	 	(404	)	 	 	-5.1	%	 	 	377	 	 	 	0.3	%	 	 	(377	)	 	 	-2.0	%
	8674
    Guest Lost/Damaged Property	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8675
    · Bad Debt Expense	 	 	-	 	 	 	0.0	%	 	 	111	 	 	 	0.1	%	 	 	(111	)	 	 	-1.4	%	 	 	104	 	 	 	0.1	%	 	 	(104	)	 	 	-0.5	%
	8678
    · Express Mail	 	 	-	 	 	 	0.0	%	 	 	40	 	 	 	0.0	%	 	 	(40	)	 	 	-0.5	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8679
    · Payroll Processing Fees	 	 	1,431	 	 	 	1.0	%	 	 	806	 	 	 	0.6	%	 	 	625	 	 	 	8.0	%	 	 	754	 	 	 	0.6	%	 	 	677	 	 	 	3.6	%
	8680 · Postage	 	 	45	 	 	 	0.0	%	 	 	7	 	 	 	0.0	%	 	 	38	 	 	 	0.5	%	 	 	6	 	 	 	0.0	%	 	 	39	 	 	 	0.2	%
	8681
    · Dues & Subscriptions	 	 	-	 	 	 	0.0	%	 	 	24	 	 	 	0.0	%	 	 	(24	)	 	 	-0.3	%	 	 	23	 	 	 	0.0	%	 	 	(23	)	 	 	-0.1	%
	8682 · Printing	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8683
    · Credit Card Fees	 	 	2,613	 	 	 	1.9	%	 	 	3,952	 	 	 	3.0	%	 	 	(1,339	)	 	 	-17.1	%	 	 	6,427	 	 	 	5.3	%	 	 	(3,814	)	 	 	-20.2	%
	8684
    · Bank Fees	 	 	135	 	 	 	0.1	%	 	 	37	 	 	 	0.0	%	 	 	98	 	 	 	1.2	%	 	 	35	 	 	 	0.0	%	 	 	100	 	 	 	0.5	%
	8685
    · Telephone Cell & Radio	 	 	86	 	 	 	0.1	%	 	 	75	 	 	 	0.1	%	 	 	11	 	 	 	0.1	%	 	 	70	 	 	 	0.1	%	 	 	16	 	 	 	0.1	%
	8686 · Security	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8687
    · Employee Recruitment	 	 	211	 	 	 	0.2	%	 	 	260	 	 	 	0.2	%	 	 	(49	)	 	 	-0.6	%	 	 	243	 	 	 	0.2	%	 	 	(32	)	 	 	-0.2	%
	8688
    · Employ Relations & Train	 	 	161	 	 	 	0.1	%	 	 	195	 	 	 	0.1	%	 	 	(34	)	 	 	-0.4	%	 	 	183	 	 	 	0.2	%	 	 	(21	)	 	 	-0.1	%
	8689
    · Armored Car Service	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8690
    · Office Supplies	 	 	-	 	 	 	0.0	%	 	 	209	 	 	 	0.2	%	 	 	(209	)	 	 	-2.7	%	 	 	196	 	 	 	0.2	%	 	 	(196	)	 	 	-1.0	%
	8691
    · Employee Relocation	 	 	-	 	 	 	0.0	%	 	 	1,253	 	 	 	1.0	%	 	 	(1,253	)	 	 	-16.0	%	 	 	1,171	 	 	 	1.0	%	 	 	(1,171	)	 	 	-6.2	%
	8692 · Cash over/short	 	 	17	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	17	 	 	 	0.2	%	 	 	-	 	 	 	0.0	%	 	 	17	 	 	 	0.1	%
	8693
    · Licenses & Permits	 	 	284	 	 	 	0.2	%	 	 	1,520	 	 	 	1.2	%	 	 	(1,236	)	 	 	-15.8	%	 	 	1,421	 	 	 	1.2	%	 	 	(1,137	)	 	 	-6.0	%
	8694
    · Student Housing	 	 	159	 	 	 	0.1	%	 	 	328	 	 	 	0.2	%	 	 	(168	)	 	 	-2.1	%	 	 	306	 	 	 	0.3	%	 	 	(147	)	 	 	-0.8	%
	8696
    · Business Travel	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8697
    · Business Meals	 	 	-	 	 	 	0.0	%	 	 	301	 	 	 	0.2	%	 	 	(301	)	 	 	-3.8	%	 	 	282	 	 	 	0.2	%	 	 	(282	)	 	 	-1.5	%
	8698 · Consultants	 	 	595	 	 	 	0.4	%	 	 	502	 	 	 	0.4	%	 	 	93	 	 	 	1.2	%	 	 	469	 	 	 	0.4	%	 	 	125	 	 	 	0.7	%
	8699
    · 2008 Consulting Recon	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8695
    · Equipment Lease	 	 	244	 	 	 	0.2	%	 	 	-	 	 	 	0.0	%	 	 	244	 	 	 	3.1	%	 	 	-	 	 	 	0.0	%	 	 	244	 	 	 	1.3	%
	Total
    8600 . General & Administrative	 	 	6,111	 	 	 	4.4	%	 	 	11,947	 	 	 	9.1	%	 	 	(5,836	)	 	 	-74.4	%	 	 	13,862	 	 	 	11.5	%	 	 	(7,750	)	 	 	-41.0	%
	Total
    Expense	 	 	12,148	 	 	 	8.7	%	 	 	19,049	 	 	 	14.5	%	 	 	(6,901	)	 	 	-88.0	%	 	 	21,039	 	 	 	17.4	%	 	 	(8,890	)	 	 	-47.0	%
	Net
    Income	 	 	(12,148	)	 	 	-8.7	%	 	 	(19,049	)	 	 	-14.5	%	 	 	6,901	 	 	 	88.0	%	 	 	(21,039	)	 	 	-17.4	%	 	 	8,890	 	 	 	47.0	%

 

	 	 	 	 	 	Budget	 
	 	 	Year
                                                                                                                to Date	 	 	Full
                                                                                                                                                                                                                                                                                                                                                                                                                                      Year	 
	 	 	Actual	 	 	%
                                                                                                                                                                                                                                                                                                                                                                                to
                                                                                                                                                                                                                                                                                                                                                                                
Revenue	 	 	Budget	 	 	%
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              to
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
Revenue	 	 	Variance	 	 	%
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              to
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
Revenue	 	 	Prior
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Year	 	 	%
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              to
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
Revenue	 	 	Variance	 	 	%
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              to
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
Revenue	 	 	Amount	 	 	%
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              to
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
Revenue	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Expense	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5000 . Payroll
    & Benefits	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5600000 . G&A Payroll	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5684000 . Finance Salaries	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5684100 ·
    Controller	 	 	-	 	 	 	0.0	%	 	 	5,699	 	 	 	2.2	%	 	 	(5,699	)	 	 	-99.6	%	 	 	3,927	 	 	 	1.7	%	 	 	(3,927	)	 	 	-16.9	%	 	 	12,936	 	 	 	1.2	%
	5684110
    · Assistant Controller	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	1,085	 	 	 	0.5	%	 	 	(1,085	)	 	 	-4.7	%	 	 	2,940	 	 	 	0.3	%
	5684130
    · Coordinator	 	 	6,704	 	 	 	2.6	%	 	 	-	 	 	 	0.0	%	 	 	6,704	 	 	 	117.2	%	 	 	1,779	 	 	 	0.8	%	 	 	4,924	 	 	 	21.2	%	 	 	5,652	 	 	 	0.5	%
	Total 5684000 . Finance
    Salaries	 	 	6,704	 	 	 	2.6	%	 	 	5,699	 	 	 	2.2	%	 	 	1,005	 	 	 	17.6	%	 	 	6,791	 	 	 	2.9	%	 	 	(87	)	 	 	-0.4	%	 	 	21,528	 	 	 	2.0	%
	5686000 . G&A Salaries
    & Wages	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5686130
    · G & A Coordinator	 	 	423	 	 	 	0.2	%	 	 	-	 	 	 	0.0	%	 	 	423	 	 	 	7.4	%	 	 	439	 	 	 	0.2	%	 	 	(15	)	 	 	-0.1	%	 	 	5,292	 	 	 	0.5	%
	5686150
    · G & A Supervisor	 	 	719	 	 	 	0.3	%	 	 	-	 	 	 	0.0	%	 	 	719	 	 	 	12.6	%	 	 	998	 	 	 	0.4	%	 	 	(278	)	 	 	-1.2	%	 	 	4,260	 	 	 	0.4	%
	5686160
    · G & A Asst Manager	 	 	(100	)	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	(100	)	 	 	-1.8	%	 	 	-	 	 	 	0.0	%	 	 	(100	)	 	 	-0.4	%	 	 	-	 	 	 	0.0	%
	5686180
    · G & A Director	 	 	1,253	 	 	 	0.5	%	 	 	-	 	 	 	0.0	%	 	 	1,253	 	 	 	21.9	%	 	 	2,092	 	 	 	0.9	%	 	 	(838	)	 	 	-3.6	%	 	 	8,328	 	 	 	0.8	%
	5686190
    · G & A General Manager	 	 	9,511	 	 	 	3.7	%	 	 	10,929	 	 	 	4.3	%	 	 	(1,419	)	 	 	-24.8	%	 	 	7,451	 	 	 	3.1	%	 	 	2,060	 	 	 	8.9	%	 	 	29,400	 	 	 	2.7	%
	5686199
    · G & A Shared Services	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	456	 	 	 	0.2	%	 	 	(456	)	 	 	-2.0	%	 	 	1,764	 	 	 	0.2	%
	5686699
    · G&A Other Pay	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	Total 5686000 . G&A
    Salaries & Wages	 	 	11,806.41	 	 	 	4.5	%	 	 	10,929.49	 	 	 	4.3	%	 	 	877	 	 	 	15.3	%	 	 	11,434.41	 	 	 	4.8	%	 	 	372	 	 	 	1.6	%	 	 	49,044.00	 	 	 	4.6	%
	5686050 . G&A Taxes
    and Benefit	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5651
    · G&A Payroll Taxes	 	 	1,153	 	 	 	0.4	%	 	 	1,808	 	 	 	0.7	%	 	 	(655	)	 	 	-11.4	%	 	 	1,931	 	 	 	0.8	%	 	 	(778	)	 	 	-3.3	%	 	 	5,646	 	 	 	0.5	%
	5652
    · G&A Workers' Comp	 	 	20	 	 	 	0.0	%	 	 	9	 	 	 	0.0	%	 	 	11	 	 	 	0.2	%	 	 	8	 	 	 	0.0	%	 	 	12	 	 	 	0.1	%	 	 	649	 	 	 	0.1	%
	5653
    · G&A Employ Benefits	 	 	373	 	 	 	0.1	%	 	 	221	 	 	 	0.1	%	 	 	152	 	 	 	2.7	%	 	 	179	 	 	 	0.1	%	 	 	194	 	 	 	0.8	%	 	 	2,808	 	 	 	0.3	%
	5655 · G&A
    PTO	 	 	373	 	 	 	0.1	%	 	 	356	 	 	 	0.1	%	 	 	17	 	 	 	0.3	%	 	 	140	 	 	 	0.1	%	 	 	232	 	 	 	1.0	%	 	 	2,752	 	 	 	0.3	%
	5656
    · G&A Empoy Meals	 	 	73	 	 	 	0.0	%	 	 	582	 	 	 	0.2	%	 	 	(508	)	 	 	-8.9	%	 	 	617	 	 	 	0.3	%	 	 	(544	)	 	 	-2.3	%	 	 	-	 	 	 	0.0	%
	5699
    · G&A Shared Services Fringes	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	Total
    5686050 . G&A Taxes and Benefit	 	 	1,992	 	 	 	0.8	%	 	 	2,976	 	 	 	1.2	%	 	 	(983	)	 	 	-17.2	%	 	 	2,875	 	 	 	1.2	%	 	 	(883	)	 	 	-3.8	%	 	 	11,855	 	 	 	1.1	%
	Total
    5600000 . G&A Payroll	 	 	13,799	 	 	 	5.3	%	 	 	13,905	 	 	 	5.5	%	 	 	(106	)	 	 	-1.9	%	 	 	14,309	 	 	 	6.0	%	 	 	(511	)	 	 	-2.2	%	 	 	60,899	 	 	 	5.7	%
	Total 5000 . Payroll &
    Benefits	 	 	20,502	 	 	 	7.9	%	 	 	19,604	 	 	 	7.7	%	 	 	899	 	 	 	15.7	%	 	 	21,100	 	 	 	8.9	%	 	 	(598	)	 	 	-2.6	%	 	 	82,427	 	 	 	7.7	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	8600 . General & Administrative	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	8661
    · Charitable Contributions	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8601
    · Workman's Comp Adjust	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8602
    · Sales Tax Expense	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8604
    · Tax Penalties & Fees	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8610
    · IT Support	 	 	533	 	 	 	0.2	%	 	 	-	 	 	 	0.0	%	 	 	533	 	 	 	9.3	%	 	 	835	 	 	 	0.4	%	 	 	(302	)	 	 	-1.3	%	 	 	4,704	 	 	 	0.4	%
	8635 · Uniforms	 	 	87	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	87	 	 	 	1.5	%	 	 	-	 	 	 	0.0	%	 	 	87	 	 	 	0.4	%	 	 	-	 	 	 	0.0	%
	8650 · Maint/Service
    Contract	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	288	 	 	 	0.0	%
	8651
    · Computer Maint & Support	 	 	447	 	 	 	0.2	%	 	 	2,484	 	 	 	1.0	%	 	 	(2,037	)	 	 	-35.6	%	 	 	1,850	 	 	 	0.8	%	 	 	(1,404	)	 	 	-6.0	%	 	 	300	 	 	 	0.0	%
	8660
    · Legal Fees	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8672
    · Accounting Fees	 	 	-	 	 	 	0.0	%	 	 	1,248	 	 	 	0.5	%	 	 	(1,248	)	 	 	-21.8	%	 	 	1,544	 	 	 	0.7	%	 	 	(1,544	)	 	 	-6.6	%	 	 	3,764	 	 	 	0.4	%
	8674
    Guest Lost/Damaged Property	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8675
    · Bad Debt Expense	 	 	-	 	 	 	0.0	%	 	 	111	 	 	 	0.0	%	 	 	(111	)	 	 	-1.9	%	 	 	104	 	 	 	0.0	%	 	 	(104	)	 	 	-0.4	%	 	 	-	 	 	 	0.0	%
	8678
    · Express Mail	 	 	78	 	 	 	0.0	%	 	 	158	 	 	 	0.1	%	 	 	(80	)	 	 	-1.4	%	 	 	-	 	 	 	0.0	%	 	 	78	 	 	 	0.3	%	 	 	-	 	 	 	0.0	%
	8679
    · Payroll Processing Fees	 	 	3,004	 	 	 	1.2	%	 	 	2,367	 	 	 	0.9	%	 	 	638	 	 	 	11.2	%	 	 	2,019	 	 	 	0.9	%	 	 	986	 	 	 	4.2	%	 	 	3,528	 	 	 	0.3	%
	8680 · Postage	 	 	79	 	 	 	0.0	%	 	 	65	 	 	 	0.0	%	 	 	15	 	 	 	0.3	%	 	 	50	 	 	 	0.0	%	 	 	29	 	 	 	0.1	%	 	 	48	 	 	 	0.0	%
	8681
    · Dues & Subscriptions	 	 	30	 	 	 	0.0	%	 	 	54	 	 	 	0.0	%	 	 	(24	)	 	 	-0.4	%	 	 	23	 	 	 	0.0	%	 	 	7	 	 	 	0.0	%	 	 	768	 	 	 	0.1	%
	8682 · Printing	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8683
    · Credit Card Fees	 	 	7,074	 	 	 	2.7	%	 	 	8,132	 	 	 	3.2	%	 	 	(1,059	)	 	 	-18.5	%	 	 	14,908	 	 	 	6.3	%	 	 	(7,834	)	 	 	-33.7	%	 	 	38,942	 	 	 	3.6	%
	8684
    · Bank Fees	 	 	413	 	 	 	0.2	%	 	 	101	 	 	 	0.0	%	 	 	312	 	 	 	5.5	%	 	 	40	 	 	 	0.0	%	 	 	373	 	 	 	1.6	%	 	 	-	 	 	 	0.0	%
	8685
    · Telephone Cell & Radio	 	 	135	 	 	 	0.1	%	 	 	112	 	 	 	0.0	%	 	 	23	 	 	 	0.4	%	 	 	70	 	 	 	0.0	%	 	 	65	 	 	 	0.3	%	 	 	300	 	 	 	0.0	%
	8686 · Security	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8687
    · Employee Recruitment	 	 	211	 	 	 	0.1	%	 	 	260	 	 	 	0.1	%	 	 	(49	)	 	 	-0.9	%	 	 	255	 	 	 	0.1	%	 	 	(44	)	 	 	-0.2	%	 	 	1,200	 	 	 	0.1	%
	8688
    · Employ Relations & Train	 	 	161	 	 	 	0.1	%	 	 	376	 	 	 	0.1	%	 	 	(215	)	 	 	-3.8	%	 	 	352	 	 	 	0.1	%	 	 	(190	)	 	 	-0.8	%	 	 	2,078	 	 	 	0.2	%
	8689
    · Armored Car Service	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	1,176	 	 	 	0.1	%
	8690
    · Office Supplies	 	 	2	 	 	 	0.0	%	 	 	420	 	 	 	0.2	%	 	 	(418	)	 	 	-7.3	%	 	 	696	 	 	 	0.3	%	 	 	(695	)	 	 	-3.0	%	 	 	-	 	 	 	0.0	%
	8691
    · Employee Relocation	 	 	-	 	 	 	0.0	%	 	 	1,253	 	 	 	0.5	%	 	 	(1,253	)	 	 	-21.9	%	 	 	1,171	 	 	 	0.5	%	 	 	(1,171	)	 	 	-5.0	%	 	 	-	 	 	 	0.0	%
	8692 · Cash over/short	 	 	17	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	17	 	 	 	0.3	%	 	 	-	 	 	 	0.0	%	 	 	17	 	 	 	0.1	%	 	 	-	 	 	 	0.0	%
	8693
    · Licenses & Permits	 	 	348	 	 	 	0.1	%	 	 	1,868	 	 	 	0.7	%	 	 	(1,519	)	 	 	-26.6	%	 	 	1,710	 	 	 	0.7	%	 	 	(1,362	)	 	 	-5.9	%	 	 	588	 	 	 	0.1	%
	8694
    · Student Housing	 	 	882	 	 	 	0.3	%	 	 	1,088	 	 	 	0.4	%	 	 	(206	)	 	 	-3.6	%	 	 	1,041	 	 	 	0.4	%	 	 	(159	)	 	 	-0.7	%	 	 	-	 	 	 	0.0	%
	8696
    · Business Travel	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8697
    · Business Meals	 	 	-	 	 	 	0.0	%	 	 	379	 	 	 	0.1	%	 	 	(379	)	 	 	-6.6	%	 	 	449	 	 	 	0.2	%	 	 	(449	)	 	 	-1.9	%	 	 	-	 	 	 	0.0	%
	8698 · Consultants	 	 	1,978	 	 	 	0.8	%	 	 	1,792	 	 	 	0.7	%	 	 	185	 	 	 	3.2	%	 	 	1,335	 	 	 	0.6	%	 	 	643	 	 	 	2.8	%	 	 	-	 	 	 	0.0	%
	8699
    · 2008 Consulting Recon	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8695
    · Equipment Lease	 	 	318	 	 	 	0.1	%	 	 	39	 	 	 	0.0	%	 	 	279	 	 	 	4.9	%	 	 	-	 	 	 	0.0	%	 	 	318	 	 	 	1.4	%	 	 	444	 	 	 	0.0	%
	Total
    8600 . General & Administrative	 	 	15,797	 	 	 	6.1	%	 	 	22,306	 	 	 	8.8	%	 	 	(6,509	)	 	 	-113.8	%	 	 	28,451	 	 	 	12.0	%	 	 	(12,654	)	 	 	-54.4	%	 	 	58,128	 	 	 	5.4	%
	Total
    Expense	 	 	36,299	 	 	 	14.0	%	 	 	41,910	 	 	 	16.5	%	 	 	(5,611	)	 	 	-98.1	%	 	 	49,551	 	 	 	20.9	%	 	 	(13,252	)	 	 	-57.0	%	 	 	140,555	 	 	 	13.1	%
	Net
    Income	 	 	(36,299	)	 	 	-14.0	%	 	 	(41,910	)	 	 	-16.5	%	 	 	5,611	 	 	 	98.1	%	 	 	(49,551	)	 	 	-20.9	%	 	 	13,252	 	 	 	57.0	%	 	 	(140,555	)	 	 	-13.1	%

 

 

 

	 	Page 10 of 19	109.3. Ex 18(a)- 3rd Part - Orchards Annex March 13 Issue

 

    	 

    	 

     

Orchards Annex, LLC

Administrative and General Dept

January through March 2013

 

	 	 	Jan 13	 	 	Feb 13	 	 	Mar 13	 	 	TOTAL	 
	Ordinary Income/Expense	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Expense	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5000 · Payroll & Benefits	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5600000 · G&A Payroll	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5684000 · Finance Salaries	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5684100 · Controller	 	 	0.00	 	 	 	791.84	 	 	 	-791.84	 	 	 	0.00	 
	5684130 · Coordinator	 	 	2,710.57	 	 	 	1,857.97	 	 	 	2,135.01	 	 	 	6,703.55	 
	Total 5684000 · Finance Salaries	 	 	2,710.57	 	 	 	2,649.81	 	 	 	1,343.17	 	 	 	6,703.55	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5686000 · G&A Salaries & Wages	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5686130 · G & A Coordinator	 	 	141.12	 	 	 	141.12	 	 	 	141.12	 	 	 	423.36	 
	5686150 · G & A Supervisor	 	 	0.00	 	 	 	378.66	 	 	 	340.66	 	 	 	719.32	 
	5686160 · G & A Asst Manager	 	 	37.77	 	 	 	37.69	 	 	 	-175.91	 	 	 	-100.45	 
	5686180 · G & A Director	 	 	358.08	 	 	 	358.08	 	 	 	537.12	 	 	 	1,253.28	 
	5686190 · G & A General Manager	 	 	2,117.55	 	 	 	3,951.10	 	 	 	3,442.25	 	 	 	9,510.90	 
	Total 5686000 · G&A Salaries & Wages	 	 	2,654.52	 	 	 	4,866.65	 	 	 	4,285.24	 	 	 	11,806.41	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5686050 · G&A Taxes and Benefit	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5651 · G&A Payroll Taxes	 	 	425.13	 	 	 	501.49	 	 	 	226.78	 	 	 	1,153.40	 
	5652 · G&A Workers' Comp	 	 	6.59	 	 	 	6.59	 	 	 	6.59	 	 	 	19.77	 
	5653 · G&A Employ Benefits	 	 	133.90	 	 	 	133.90	 	 	 	105.20	 	 	 	373.00	 
	5655 · G&A PTO	 	 	249.54	 	 	 	66.44	 	 	 	56.82	 	 	 	372.80	 
	5656 · G&A Empoy Meals	 	 	9.58	 	 	 	50.47	 	 	 	13.30	 	 	 	73.35	 
	Total 5686050 · G&A Taxes and Benefit	 	 	824.74	 	 	 	758.89	 	 	 	408.69	 	 	 	1,992.32	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total 5600000 · G&A Payroll	 	 	6,189.83	 	 	 	8,275.35	 	 	 	6,037.10	 	 	 	20,502.28	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total 5000 · Payroll & Benefits	 	 	6,189.83	 	 	 	8,275.35	 	 	 	6,037.10	 	 	 	20,502.28	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	8600 · General & Administrative	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	8610 · IT Support	 	 	55.74	 	 	 	421.28	 	 	 	55.74	 	 	 	532.76	 
	8635 · Uniforms	 	 	39.28	 	 	 	0.00	 	 	 	48.14	 	 	 	87.42	 
	8651 · Computer Maint & Support	 	 	392.67	 	 	 	27.13	 	 	 	27.13	 	 	 	446.93	 
	8678 · Express Mail	 	 	77.66	 	 	 	0.00	 	 	 	0.00	 	 	 	77.66	 
	8679 · Payroll Processing Fees	 	 	613.30	 	 	 	960.13	 	 	 	1,431.04	 	 	 	3,004.47	 
	8680 · Postage	 	 	34.18	 	 	 	0.00	 	 	 	45.08	 	 	 	79.26	 
	8681 · Dues & Subscriptions	 	 	30.00	 	 	 	0.00	 	 	 	0.00	 	 	 	30.00	 
	8683 · Credit Card Fees	 	 	2,029.71	 	 	 	2,431.41	 	 	 	2,612.62	 	 	 	7,073.74	 
	8684 · Bank Fees	 	 	57.90	 	 	 	220.00	 	 	 	135.00	 	 	 	412.90	 
	8685 · Telephone Cell & Radio	 	 	36.75	 	 	 	12.25	 	 	 	85.75	 	 	 	134.75	 
	8687 · Employee Recruitment	 	 	0.00	 	 	 	0.00	 	 	 	210.84	 	 	 	210.84	 
	8688 · Employ Relations & Train	 	 	0.00	 	 	 	0.00	 	 	 	161.21	 	 	 	161.21	 
	8690 · Office Supplies	 	 	1.62	 	 	 	0.00	 	 	 	0.00	 	 	 	1.62	 
	8692 · Cash over/short	 	 	0.00	 	 	 	0.00	 	 	 	17.04	 	 	 	17.04	 
	8693 · Licenses & Permits	 	 	37.73	 	 	 	26.46	 	 	 	284.20	 	 	 	348.39	 
	8694 · Student Housing	 	 	379.75	 	 	 	343.00	 	 	 	159.25	 	 	 	882.00	 
	8695 · Equipment Lease	 	 	0.00	 	 	 	74.24	 	 	 	243.78	 	 	 	318.02	 
	8698 · Consultants	 	 	788.38	 	 	 	594.57	 	 	 	594.57	 	 	 	1,977.52	 
	Total 8600 · General & Administrative	 	 	4,574.67	 	 	 	5,110.47	 	 	 	6,111.39	 	 	 	15,796.53	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Expense	 	 	10,764.50	 	 	 	13,385.82	 	 	 	12,148.49	 	 	 	36,298.81	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Net Ordinary Income	 	 	-10,764.50	 	 	 	-13,385.82	 	 	 	-12,148.49	 	 	 	-36,298.81	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Net Income	 	 	-10,764.50	 	 	 	-13,385.82	 	 	 	-12,148.49	 	 	 	-36,298.81	 

 

 

	 	Page 11 of 19	109.3. Ex 18(a)- 3rd Part - Orchards Annex March 13 Issue / A&G

 

    	 

    	 

     

Orchards Annex

Sales and Marketing Department

Actual vs. Budget and Prior Year

March 2013
  

 

	 	 	Current Month	 
	 	 	Actual	 	 	% to

                                                                                                                                                                                                                                                                                                             Revenue	 	 	Budget	 	 	% to

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Revenue	 	 	Variance	 	 	% to

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Revenue	 	 	Prior
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Year	 	 	% to

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Revenue	 	 	Variance	 	 	% to

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Revenue	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Expense	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5000 · Payroll & Benefits	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5787000 · Sales Salaries
    & Wages	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5787170
    · Sales Manager	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	Total 5787000 · Sales
    Salaries & Wages	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	5787050 · Sales Taxes
    & Benefit	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.0	%	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.0	%
	5751 ·
    Sales Payroll & Taxes	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	Total 5787050 · Sales
    Taxes & Benefit	 	 	-	 	 	 	 	 	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	Total 5000 · Payroll
    & Benefits	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.0	%	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.0	%
	8700 . Sales & Marketing	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.0	%	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.0	%
	8751 · Computer Maint
    & Supp	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8764 · Promotions	 	 	(147	)	 	 	-0.1	%	 	 	-	 	 	 	0.0	%	 	 	(147	)	 	 	-1.9	%	 	 	13	 	 	 	0.0	%	 	 	(160	)	 	 	-0.8	%
	8760 · Advertising	 	 	18	 	 	 	0.0	%	 	 	2,478	 	 	 	1.9	%	 	 	(2,460	)	 	 	-31.4	%	 	 	2,360	 	 	 	2.0	%	 	 	(2,342	)	 	 	-12.4	%
	8765 · Public Relations	 	 	-	 	 	 	0.0	%	 	 	257	 	 	 	0.2	%	 	 	(257	)	 	 	-3.3	%	 	 	245	 	 	 	0.2	%	 	 	(245	)	 	 	-1.3	%
	8768 · Tradeshow	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8776 · Photography	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8781 · Dues & Subscriptions	 	 	84	 	 	 	0.1	%	 	 	515	 	 	 	0.4	%	 	 	(432	)	 	 	-5.5	%	 	 	491	 	 	 	0.4	%	 	 	(407	)	 	 	-2.2	%
	8782 · Website	 	 	92	 	 	 	0.1	%	 	 	-	 	 	 	0.0	%	 	 	92	 	 	 	1.2	%	 	 	-	 	 	 	0.0	%	 	 	92	 	 	 	0.5	%
	8783 · Internet Advertising	 	 	189	 	 	 	0.1	%	 	 	-	 	 	 	0.0	%	 	 	189	 	 	 	2.4	%	 	 	-	 	 	 	0.0	%	 	 	189	 	 	 	1.0	%
	8784 · Printing	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8785 · Telephone Cell
    & Radio	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8790 · Office Supplies	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8792 · Visitor Center	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8797 · Business Meals	 	 	-	 	 	 	0.0	%	 	 	52	 	 	 	0.0	%	 	 	(52	)	 	 	-0.7	%	 	 	49	 	 	 	0.0	%	 	 	(49	)	 	 	-0.3	%
	8798 · Consultants	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8799 · Tarsadia Intelligence	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	Total 8700 . Sales & Marketing	 	 	236	 	 	 	0.2	%	 	 	3,303	 	 	 	2.5	%	 	 	(3,067	)	 	 	-39.1	%	 	 	3,158	 	 	 	2.6	%	 	 	(2,923	)	 	 	-15.5	%
	Total Expense	 	 	236	 	 	 	0.2	%	 	 	3,303	 	 	 	2.5	%	 	 	(3,067	)	 	 	-39.1	%	 	 	3,158	 	 	 	2.6	%	 	 	(2,923	)	 	 	-15.5	%
	Net Income	 	 	(236	)	 	 	-0.2	%	 	 	(3,303	)	 	 	-2.5	%	 	 	3,067	 	 	 	39.1	%	 	 	(3,158	)	 	 	-2.6	%	 	 	2,923	 	 	 	15.5	%

 

	 	 	Year to Date	 	 	Budget

                                                                                                                                                                                                                                                                                                                                                                                                                                                                         Full Year	 
	 	 	Actual	 	 	% to

                                                                                                                                                                                                                                                                                                                                                                                  Revenue	 	 	Budget	 	 	% to

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Revenue	 	 	Variance	 	 	% to

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Revenue	 	 	Prior
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Year	 	 	% to

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Revenue	 	 	Variance	 	 	% to

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Revenue	 	 	Amount	 	 	% to

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               Revenue	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Expense	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5000 · Payroll & Benefits	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5787000 · Sales Salaries
    & Wages	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5787170
    · Sales Manager	 	 	-	 	 	 	0.0	%	 	 	255	 	 	 	0.1	%	 	 	(255	)	 	 	-4.4	%	 	 	564	 	 	 	0.2	%	 	 	(564	)	 	 	-2.4	%	 	 	-	 	 	 	0.0	%
	Total 5787000 · Sales
    Salaries & Wages	 	 	-	 	 	 	0.0	%	 	 	255	 	 	 	0.1	%	 	 	(255	)	 	 	-4.4	%	 	 	564	 	 	 	0.2	%	 	 	(564	)	 	 	-2.4	%	 	 	-	 	 	 	0.0	%
	5787050 · Sales Taxes
    & Benefit	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.0	%	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.0	%	 	 	 	 	 	 	 	 
	5751 ·
    Sales Payroll & Taxes	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	48.65	 	 	 	0.0	%	 	 	(49	)	 	 	-0.2	%	 	 	-	 	 	 	0.0	%
	Total 5787050 · Sales
    Taxes & Benefit	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	49	 	 	 	0.0	%	 	 	(49	)	 	 	-0.2	%	 	 	-	 	 	 	0.0	%
	Total 5000 · Payroll
    & Benefits	 	 	-	 	 	 	0.0	%	 	 	255	 	 	 	0.1	%	 	 	(255	)	 	 	-4.4	%	 	 	613	 	 	 	0.3	%	 	 	(613	)	 	 	-2.6	%	 	 	-	 	 	 	0.0	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.0	%	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.0	%	 	 	 	 	 	 	 	 
	8700 . Sales & Marketing	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.0	%	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.0	%	 	 	 	 	 	 	 	 
	8751 · Computer Maint
    & Supp	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	0.00	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	100	 	 	 	0.0	%
	8764 · Promotions	 	 	(245	)	 	 	-0.1	%	 	 	-	 	 	 	0.0	%	 	 	(245	)	 	 	-4.3	%	 	 	922.01	 	 	 	0.4	%	 	 	(1,167	)	 	 	-5.0	%	 	 	735	 	 	 	0.1	%
	8760 · Advertising	 	 	447	 	 	 	0.2	%	 	 	2,575	 	 	 	1.0	%	 	 	(2,128	)	 	 	-37.2	%	 	 	2,452.19	 	 	 	1.0	%	 	 	(2,006	)	 	 	-8.6	%	 	 	13,900	 	 	 	1.3	%
	8765 · Public Relations	 	 	-	 	 	 	0.0	%	 	 	515	 	 	 	0.2	%	 	 	(515	)	 	 	-9.0	%	 	 	490.00	 	 	 	0.2	%	 	 	(490	)	 	 	-2.1	%	 	 	588	 	 	 	0.1	%
	8768 · Tradeshow	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	0.00	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8776 · Photography	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	0.00	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	980	 	 	 	0.1	%
	8781 · Dues & Subscriptions	 	 	251	 	 	 	0.1	%	 	 	706	 	 	 	0.3	%	 	 	(454	)	 	 	-7.9	%	 	 	592.17	 	 	 	0.2	%	 	 	(341	)	 	 	-1.5	%	 	 	780	 	 	 	0.1	%
	8782 · Website	 	 	276	 	 	 	0.1	%	 	 	266	 	 	 	0.1	%	 	 	10	 	 	 	0.2	%	 	 	400	 	 	 	0.2	%	 	 	(124	)	 	 	-0.5	%	 	 	2,400	 	 	 	0.2	%
	8783 · Internet Advertising	 	 	189	 	 	 	0.1	%	 	 	-	 	 	 	0.0	%	 	 	189	 	 	 	3.3	%	 	 	0.00	 	 	 	0.0	%	 	 	189	 	 	 	0.8	%	 	 	9,504	 	 	 	0.9	%
	8784 · Printing	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	0.00	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	296	 	 	 	0.0	%
	8785 · Telephone Cell
    & Radio	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	0.00	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8790 · Office Supplies	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	0.00	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8792 · Visitor Center	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	0.00	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8797 · Business Meals	 	 	-	 	 	 	0.0	%	 	 	52	 	 	 	0.0	%	 	 	(52	)	 	 	-0.9	%	 	 	49.48	 	 	 	0.0	%	 	 	(49	)	 	 	-0.2	%	 	 	-	 	 	 	0.0	%
	8798 · Consultants	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	0.00	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	980	 	 	 	0.1	%
	8799 · Tarsadia Intelligence	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	0.00	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	Total 8700 . Sales & Marketing	 	 	917	 	 	 	0.4	%	 	 	4,113	 	 	 	1.6	%	 	 	(3,196	)	 	 	-55.9	%	 	 	4,906	 	 	 	2.1	%	 	 	(3,989	)	 	 	-17.2	%	 	 	30,263	 	 	 	2.8	%
	Total Expense	 	 	917	 	 	 	0.4	%	 	 	4,367	 	 	 	1.7	%	 	 	(3,450	)	 	 	-60.3	%	 	 	5,519	 	 	 	2.3	%	 	 	(4,602	)	 	 	-19.8	%	 	 	30,263	 	 	 	2.8	%
	Net Income	 	 	(917	)	 	 	-0.4	%	 	 	(4,367	)	 	 	-1.7	%	 	 	3,450	 	 	 	60.3	%	 	 	(5,519	)	 	 	-2.3	%	 	 	4,602	 	 	 	19.8	%	 	 	(30,263	)	 	 	-2.8	%

 

 

 

 

	 	Page 12 of 19	109.3. Ex 18(a)- 3rd Part - Orchards Annex March 13 Issue

 

 

    	 

    	 

     

 

Orchards Annex, LLC

Sales and Marketing Department

January through March 2013

 

	 	 	Jan 13	 	 	Feb 13	 	 	Mar 13	 	 	TOTAL	 
	Ordinary Income/Expense	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Expense	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	8700 · Sales & Marketing	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	8760 · Advertising	 	 	0.00	 	 	 	428.25	 	 	 	18.37	 	 	 	446.62	 
	8764 · Promotions	 	 	0.00	 	 	 	-98.00	 	 	 	-147.00	 	 	 	-245.00	 
	8781 · Dues & Subscriptions	 	 	83.75	 	 	 	83.75	 	 	 	83.75	 	 	 	251.25	 
	8782 · Website	 	 	91.88	 	 	 	91.88	 	 	 	91.88	 	 	 	275.64	 
	8783 · Internet Advertising	 	 	0.00	 	 	 	0.00	 	 	 	188.65	 	 	 	188.65	 
	Total 8700 · Sales & Marketing	 	 	175.63	 	 	 	505.88	 	 	 	235.65	 	 	 	917.16	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Expense	 	 	175.63	 	 	 	505.88	 	 	 	235.65	 	 	 	917.16	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Net Ordinary Income	 	 	-175.63	 	 	 	-505.88	 	 	 	-235.65	 	 	 	-917.16	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Net Income	 	 	-175.63	 	 	 	-505.88	 	 	 	-235.65	 	 	 	-917.16	 

 

 

	 	Page 13 of 19	109.3. Ex 18(a)- 3rd Part - Orchards Annex March 13 Issue / Sales

 

    	 

    	 

     

Orchards Annex

Maintenance Department

Actual vs. Budget and Prior Year

March 2013

 

	 	 	Current Month	 
	 	 	Actual	 	 	% to

                                                                                                                                                                                                                                                                                                             Revenue	 	 	Budget	 	 	% to

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Revenue	 	 	Variance	 	 	% to

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Revenue	 	 	Prior
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Year	 	 	% to

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Revenue	 	 	Variance	 	 	% to

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Revenue	 
	Expense	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5000 . Payroll & Benefits	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5800000 . Engineering Payroll	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5888000 . Engineering	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5888999 ·
    Engineering Other Pay	 	 	6,160	 	 	 	4.4	%	 	 	-	 	 	 	0.0	%	 	 	6,160	 	 	 	78.5	%	 	 	-	 	 	 	0.0	%	 	 	6,160	 	 	 	32.6	%
	5888150 · Lead Groundsman	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	212	 	 	 	0.2	%	 	 	(212	)	 	 	-1.1	%
	5888180 · Chief
    Engineer	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	1,193	 	 	 	1.0	%	 	 	(1,193	)	 	 	-6.3	%
	5888600 · Groundsmen	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	1,010	 	 	 	0.8	%	 	 	(1,010	)	 	 	-5.3	%
	5888700 · Engineer I	 	 	-	 	 	 	0.0	%	 	 	6,160	 	 	 	4.7	%	 	 	(6,160	)	 	 	-78.5	%	 	 	7,919	 	 	 	6.6	%	 	 	(7,919	)	 	 	-41.9	%
	5888710
    · Engineer II	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	Total 5888000 . Engineering	 	 	6,160	 	 	 	4.4	%	 	 	6,160	 	 	 	4.7	%	 	 	-	 	 	 	0.0	%	 	 	10,334	 	 	 	8.6	%	 	 	-4,174	 	 	 	-22.1	%
	5888050.Engineering Taxes & Ben	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5851 · Prop Ops Payroll
    Taxes	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	1,229	 	 	 	1.0	%	 	 	(1,229	)	 	 	-6.5	%
	5852 · Prop Ops Workers'
    Comp	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	5853 · Prop Ops Employ
    Benefits	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	1,274	 	 	 	1.1	%	 	 	(1,274	)	 	 	-6.7	%
	5855 · Prop Ops PTO	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	5856 · Prop Ops Employ
    Meals	 	 	49	 	 	 	0.0	%	 	 	25	 	 	 	0.0	%	 	 	24	 	 	 	0.3	%	 	 	157	 	 	 	0.1	%	 	 	(108	)	 	 	-0.6	%
	5857 ·
    Shared PTO Expense	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	Total 5888050.Engineering
    Taxes & Ben	 	 	49	 	 	 	0.0	%	 	 	25	 	 	 	0.0	%	 	 	24	 	 	 	0.3	%	 	 	2,659	 	 	 	2.2	%	 	 	(2,610	)	 	 	-13.8	%
	Total 5800000 . Engineering
    Payroll	 	 	6,209	 	 	 	4.4	%	 	 	6,185	 	 	 	4.7	%	 	 	24	 	 	 	0.3	%	 	 	12,994	 	 	 	10.8	%	 	 	(6,785	)	 	 	-35.9	%
	Total 5000 . Payroll & Benefits	 	 	6,209	 	 	 	4.4	%	 	 	6,185	 	 	 	4.7	%	 	 	24	 	 	 	0.3	%	 	 	12,994	 	 	 	10.8	%	 	 	(6,785	)	 	 	-35.9	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	8800 . Repairs & Maintenance	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	8825 · Maintenance Supplies	 	 	460	 	 	 	0.3	%	 	 	139	 	 	 	0.1	%	 	 	321	 	 	 	4.1	%	 	 	132	 	 	 	0.1	%	 	 	327	 	 	 	1.7	%
	8826 · Paint Supplies	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8827 · Small Tools &
    Equuipment	 	 	135	 	 	 	0.1	%	 	 	-	 	 	 	0.0	%	 	 	135	 	 	 	1.7	%	 	 	-	 	 	 	0.0	%	 	 	135	 	 	 	0.7	%
	8835 · Uniforms	 	 	-	 	 	 	0.0	%	 	 	60	 	 	 	0.0	%	 	 	(60	)	 	 	-0.8	%	 	 	58	 	 	 	0.0	%	 	 	(58	)	 	 	-0.3	%
	8850 · Plumbing	 	 	-	 	 	 	0.0	%	 	 	153	 	 	 	0.1	%	 	 	(153	)	 	 	-2.0	%	 	 	146	 	 	 	0.1	%	 	 	(146	)	 	 	-0.8	%
	8851·AC/Refrigeration	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8852 · Auto Expense	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8853 · Buildings	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8855·Electrical/Mechanical	 	 	91	 	 	 	0.1	%	 	 	-	 	 	 	0.0	%	 	 	91	 	 	 	1.2	%	 	 	-	 	 	 	0.0	%	 	 	91	 	 	 	0.5	%
	8856 · Equipment Repair	 	 	20	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	20	 	 	 	0.2	%	 	 	-	 	 	 	0.0	%	 	 	20	 	 	 	0.1	%
	8857 · HVAC	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8858 · Grounds	 	 	-	 	 	 	0.0	%	 	 	200	 	 	 	0.2	%	 	 	(200	)	 	 	-2.5	%	 	 	214	 	 	 	0.2	%	 	 	(214	)	 	 	-1.1	%
	8859 · Lighting	 	 	118	 	 	 	0.1	%	 	 	-	 	 	 	0.0	%	 	 	118	 	 	 	1.5	%	 	 	-	 	 	 	0.0	%	 	 	118	 	 	 	0.6	%
	8861 · Locks & Keys	 	 	42	 	 	 	0.0	%	 	 	26	 	 	 	0.0	%	 	 	17	 	 	 	0.2	%	 	 	24	 	 	 	0.0	%	 	 	18	 	 	 	0.1	%
	8862 · Pest Control	 	 	331	 	 	 	0.2	%	 	 	207	 	 	 	0.2	%	 	 	124	 	 	 	1.6	%	 	 	198	 	 	 	0.2	%	 	 	133	 	 	 	0.7	%
	8864 · Pool & Spa	 	 	57	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	57	 	 	 	0.7	%	 	 	-	 	 	 	0.0	%	 	 	57	 	 	 	0.3	%
	8867 · Propane	 	 	104	 	 	 	0.1	%	 	 	-	 	 	 	0.0	%	 	 	104	 	 	 	1.3	%	 	 	-	 	 	 	0.0	%	 	 	104	 	 	 	0.5	%
	8868 · Fire Prevention	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8883 · Service Contracts	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8885 · Telephone Cell
    & Radio	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8886 · Contract Labor	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8890 · Office Supplies	 	 	15	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	15	 	 	 	0.2	%	 	 	-	 	 	 	0.0	%	 	 	15	 	 	 	0.1	%
	8888 · Signage	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	8800 ·
    Repairs & Maintenance - Other	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	Total 8800 . Repairs &
    Maintenance	 	 	1,371	 	 	 	1.0	%	 	 	785	 	 	 	0.6	%	 	 	585	 	 	 	7.5	%	 	 	771	 	 	 	0.6	%	 	 	600	 	 	 	3.2	%
	Total Expense	 	 	7,580	 	 	 	5.4	%	 	 	6,970	 	 	 	5.3	%	 	 	609	 	 	 	7.8	%	 	 	13,765	 	 	 	11.4	%	 	 	(6,185	)	 	 	-32.7	%
	Net Income	 	 	(7,580	)	 	 	-5.4	%	 	 	(6,970	)	 	 	-5.3	%	 	 	(609	)	 	 	-7.8	%	 	 	(13,765	)	 	 	-11.4	%	 	 	6,185	 	 	 	32.7	%

 

	 	 	Year to Date	 	 	Budget

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    Full Year	 
	 	 	Actual	 	 	% to

                                                                                                                                                                                                                                                                                                                                                                                  Revenue	 	 	Budget	 	 	% to

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Revenue	 	 	Variance	 	 	% to

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Revenue	 	 	Prior
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Year	 	 	% to

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Revenue	 	 	Variance	 	 	% to

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Revenue	 	 	Amount	 	 	% to

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Revenue	 
	Expense	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5000 . Payroll & Benefits	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5800000 . Engineering Payroll	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5888000 . Engineering	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5888999 ·
    Engineering Other Pay	 	 	18,480	 	 	 	7.1	%	 	 	-	 	 	 	0.0	%	 	 	18,480	 	 	 	323.0	%	 	 	0.00	 	 	 	0.0	%	 	 	18,480	 	 	 	79.5	%	 	 	768	 	 	 	0.1	%
	5888150 · Lead Groundsman	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	354.40	 	 	 	0.1	%	 	 	(354	)	 	 	-1.5	%	 	 	-	 	 	 	0.0	%
	5888180 · Chief
    Engineer	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	2,632.70	 	 	 	1.1	%	 	 	(2,633	)	 	 	-11.3	%	 	 	17,160	 	 	 	1.6	%
	5888600 · Groundsmen	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	3,634.73	 	 	 	1.5	%	 	 	(3,635	)	 	 	-15.6	%	 	 	3,600	 	 	 	0.3	%
	5888700 · Engineer I	 	 	-	 	 	 	0.0	%	 	 	18,480	 	 	 	7.3	%	 	 	(18,480	)	 	 	-323.0	%	 	 	17,527.62	 	 	 	7.4	%	 	 	(17,528	)	 	 	-75.4	%	 	 	34,800	 	 	 	3.2	%
	5888710
    · Engineer II	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	0.00	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	Total 5888000 . Engineering	 	 	18,480	 	 	 	7.1	%	 	 	18,480	 	 	 	7.3	%	 	 	-	 	 	 	0.0	%	 	 	24,149	 	 	 	10.2	%	 	 	(5,669	)	 	 	-24.4	%	 	 	56,328	 	 	 	5.2	%
	5888050.Engineering Taxes & Ben	 	 	 	 	 	 	0.0	%	 	 	 	 	 	 	0.0	%	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.0	%	 	 	 	 	 	 	 	 	 	 	 	 	 	 	0.0	%
	5851 · Prop Ops Payroll
    Taxes	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	2,814.02	 	 	 	1.2	%	 	 	(2,814	)	 	 	-12.1	%	 	 	4,184	 	 	 	0.4	%
	5852 · Prop Ops Workers'
    Comp	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	0.00	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	588	 	 	 	0.1	%
	5853 · Prop Ops Employ
    Benefits	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	1,828.68	 	 	 	0.8	%	 	 	(1,829	)	 	 	-7.9	%	 	 	916	 	 	 	0.1	%
	5855 · Prop Ops PTO	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	0.00	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	5856 · Prop Ops Employ
    Meals	 	 	79	 	 	 	0.0	%	 	 	50	 	 	 	0.0	%	 	 	29	 	 	 	0.5	%	 	 	305.26	 	 	 	0.1	%	 	 	(226	)	 	 	-1.0	%	 	 	1,072	 	 	 	0.1	%
	5857 ·
    Shared PTO Expense	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	0.00	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	Total 5888050.Engineering
    Taxes & Ben	 	 	79	 	 	 	0.0	%	 	 	50	 	 	 	0.0	%	 	 	29	 	 	 	0.5	%	 	 	4,948	 	 	 	2.1	%	 	 	(4,869	)	 	 	-20.9	%	 	 	6,760	 	 	 	0.6	%
	Total 5800000 . Engineering
    Payroll	 	 	18,559	 	 	 	7.1	%	 	 	18,530	 	 	 	7.3	%	 	 	29	 	 	 	0.5	%	 	 	29,097.41	 	 	 	12.3	%	 	 	(10,538	)	 	 	-45.3	%	 	 	63,088	 	 	 	5.9	%
	Total 5000 . Payroll & Benefits	 	 	18,559	 	 	 	7.1	%	 	 	18,530	 	 	 	7.3	%	 	 	29	 	 	 	0.5	%	 	 	29,097	 	 	 	12.3	%	 	 	(10,538	)	 	 	-45.3	%	 	 	63,088	 	 	 	5.9	%
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	8800 . Repairs & Maintenance	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	8825 · Maintenance Supplies	 	 	1,902	 	 	 	0.7	%	 	 	1,770	 	 	 	0.7	%	 	 	132	 	 	 	2.3	%	 	 	1,554	 	 	 	0.7	%	 	 	348	 	 	 	1.5	%	 	 	8,554	 	 	 	0.8	%
	8826 · Paint Supplies	 	 	12	 	 	 	0.0	%	 	 	9	 	 	 	0.0	%	 	 	3	 	 	 	0.0	%	 	 	53	 	 	 	0.0	%	 	 	(41	)	 	 	-0.2	%	 	 	1,782	 	 	 	0.2	%
	8827 · Small Tools &
    Equuipment	 	 	704	 	 	 	0.3	%	 	 	167	 	 	 	0.1	%	 	 	537	 	 	 	9.4	%	 	 	25	 	 	 	0.0	%	 	 	679	 	 	 	2.9	%	 	 	1,426	 	 	 	0.1	%
	8835 · Uniforms	 	 	-	 	 	 	0.0	%	 	 	60	 	 	 	0.0	%	 	 	(60	)	 	 	-1.1	%	 	 	(65	)	 	 	0.0	%	 	 	65	 	 	 	0.3	%	 	 	927	 	 	 	0.1	%
	8850 · Plumbing	 	 	-	 	 	 	0.0	%	 	 	153	 	 	 	0.1	%	 	 	(153	)	 	 	-2.7	%	 	 	(0	)	 	 	0.0	%	 	 	0	 	 	 	0.0	%	 	 	3,564	 	 	 	0.3	%
	8851·AC/Refrigeration	 	 	19	 	 	 	0.0	%	 	 	19	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	314	 	 	 	0.1	%	 	 	(295	)	 	 	-1.3	%	 	 	713	 	 	 	0.1	%
	8852 · Auto Expense	 	 	-	 	 	 	0.0	%	 	 	53	 	 	 	0.0	%	 	 	(53	)	 	 	-0.9	%	 	 	114	 	 	 	0.0	%	 	 	(114	)	 	 	-0.5	%	 	 	-	 	 	 	0.0	%
	8853 · Buildings	 	 	-	 	 	 	0.0	%	 	 	45	 	 	 	0.0	%	 	 	(45	)	 	 	-0.8	%	 	 	43	 	 	 	0.0	%	 	 	(43	)	 	 	-0.2	%	 	 	3,566	 	 	 	0.3	%
	8855·Electrical/Mechanical	 	 	513	 	 	 	0.2	%	 	 	423	 	 	 	0.2	%	 	 	91	 	 	 	1.6	%	 	 	-	 	 	 	0.0	%	 	 	513	 	 	 	2.2	%	 	 	1,782	 	 	 	0.2	%
	8856 · Equipment Repair	 	 	154	 	 	 	0.1	%	 	 	124	 	 	 	0.0	%	 	 	29	 	 	 	0.5	%	 	 	696	 	 	 	0.3	%	 	 	(542	)	 	 	-2.3	%	 	 	4,990	 	 	 	0.5	%
	8857 · HVAC	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	198	 	 	 	0.1	%	 	 	(198	)	 	 	-0.9	%	 	 	5,346	 	 	 	0.5	%
	8858 · Grounds	 	 	-	 	 	 	0.0	%	 	 	400	 	 	 	0.2	%	 	 	(400	)	 	 	-7.0	%	 	 	471	 	 	 	0.2	%	 	 	(471	)	 	 	-2.0	%	 	 	356	 	 	 	0.0	%
	8859 · Lighting	 	 	361	 	 	 	0.1	%	 	 	333	 	 	 	0.1	%	 	 	28	 	 	 	0.5	%	 	 	503	 	 	 	0.2	%	 	 	(143	)	 	 	-0.6	%	 	 	713	 	 	 	0.1	%
	8861 · Locks & Keys	 	 	57	 	 	 	0.0	%	 	 	40	 	 	 	0.0	%	 	 	17	 	 	 	0.3	%	 	 	32	 	 	 	0.0	%	 	 	25	 	 	 	0.1	%	 	 	269	 	 	 	0.0	%
	8862 · Pest Control	 	 	444	 	 	 	0.2	%	 	 	559	 	 	 	0.2	%	 	 	(115	)	 	 	-2.0	%	 	 	892	 	 	 	0.4	%	 	 	(448	)	 	 	-1.9	%	 	 	4,633	 	 	 	0.4	%
	8864 · Pool & Spa	 	 	122	 	 	 	0.0	%	 	 	56	 	 	 	0.0	%	 	 	66	 	 	 	1.2	%	 	 	(1,522	)	 	 	-0.6	%	 	 	1,644	 	 	 	7.1	%	 	 	5,346	 	 	 	0.5	%
	8867 · Propane	 	 	173	 	 	 	0.1	%	 	 	41	 	 	 	0.0	%	 	 	132	 	 	 	2.3	%	 	 	-	 	 	 	0.0	%	 	 	173	 	 	 	0.7	%	 	 	-	 	 	 	0.0	%
	8868 · Fire Prevention	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	686	 	 	 	0.1	%
	8883 · Service Contracts	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	5,783	 	 	 	0.5	%
	8885 · Telephone Cell
    & Radio	 	 	17	 	 	 	0.0	%	 	 	157	 	 	 	0.1	%	 	 	(141	)	 	 	-2.5	%	 	 	134	 	 	 	0.1	%	 	 	(117	)	 	 	-0.5	%	 	 	2,651	 	 	 	0.2	%
	8886 · Contract Labor	 	 	89	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	89	 	 	 	1.6	%	 	 	75	 	 	 	0.0	%	 	 	14	 	 	 	0.1	%	 	 	588	 	 	 	0.1	%
	8890 · Office Supplies	 	 	67	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	67	 	 	 	1.2	%	 	 	-	 	 	 	0.0	%	 	 	67	 	 	 	0.3	%	 	 	196	 	 	 	0.0	%
	8888 · Signage	 	 	23	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	23	 	 	 	0.4	%	 	 	-	 	 	 	0.0	%	 	 	23	 	 	 	0.1	%	 	 	713	 	 	 	0.1	%
	8800 ·
    Repairs & Maintenance - Other	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%
	Total 8800 . Repairs &
    Maintenance	 	 	4,657	 	 	 	1.8	%	 	 	4,409	 	 	 	1.7	%	 	 	248	 	 	 	4.3	%	 	 	3,518	 	 	 	1.5	%	 	 	1,139	 	 	 	4.9	%	 	 	54,584	 	 	 	5.1	%
	Total Expense	 	 	23,216	 	 	 	8.9	%	 	 	22,939	 	 	 	9.0	%	 	 	277	 	 	 	4.8	%	 	 	32,616	 	 	 	13.8	%	 	 	(9,400	)	 	 	-40.4	%	 	 	117,672	 	 	 	11.0	%
	Net Income	 	 	(23,216	)	 	 	-8.9	%	 	 	(22,939	)	 	 	-9.0	%	 	 	(277	)	 	 	-4.8	%	 	 	(32,616	)	 	 	-13.8	%	 	 	9,400	 	 	 	40.4	%	 	 	(117,672	)	 	 	-11.0	%

 

 

 

 

	 	Page 14 of 19	109.3. Ex 18(a)- 3rd Part - Orchards Annex March 13 Issue

 

 

    	 

    	 

     

 

Orchards Annex, LLC

Maintenance Department

January through March 2013

 

	 	 	Jan 13	 	 	Feb 13	 	 	Mar 13	 	 	TOTAL	 
	Ordinary Income/Expense	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Expense	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5000 · Payroll & Benefits	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5800000 · Engineering Payroll	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5888000 · Engineering	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5888999 · Engineering Other Pay	 	 	6,160.00	 	 	 	6,160.00	 	 	 	6,160.00	 	 	 	18,480.00	 
	Total 5888000 · Engineering	 	 	6,160.00	 	 	 	6,160.00	 	 	 	6,160.00	 	 	 	18,480.00	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5888050 · Engineering Taxes & Ben	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	5856 · Prop Ops Employ Meals	 	 	0.00	 	 	 	30.18	 	 	 	48.86	 	 	 	79.04	 
	Total 5888050 · Engineering Taxes & Ben	 	 	0.00	 	 	 	30.18	 	 	 	48.86	 	 	 	79.04	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total 5800000 · Engineering Payroll	 	 	6,160.00	 	 	 	6,190.18	 	 	 	6,208.86	 	 	 	18,559.04	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total 5000 · Payroll & Benefits	 	 	6,160.00	 	 	 	6,190.18	 	 	 	6,208.86	 	 	 	18,559.04	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	8800 · Repairs & Maintenance	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	8825 · Maintenance Supplies	 	 	827.33	 	 	 	615.11	 	 	 	459.53	 	 	 	1,901.97	 
	8826 · Paint Supplies	 	 	9.27	 	 	 	2.71	 	 	 	0.00	 	 	 	11.98	 
	8827 · Small Tools & Equuipment	 	 	140.33	 	 	 	429.23	 	 	 	134.50	 	 	 	704.06	 
	8851·AC/Refrigeration	 	 	19.24	 	 	 	0.00	 	 	 	0.00	 	 	 	19.24	 
	8855·Electrical/Mechanical	 	 	422.82	 	 	 	0.00	 	 	 	90.57	 	 	 	513.39	 
	8856 · Equipment Repair	 	 	0.00	 	 	 	134.10	 	 	 	19.50	 	 	 	153.60	 
	8859 · Lighting	 	 	184.10	 	 	 	58.96	 	 	 	117.86	 	 	 	360.92	 
	8861 · Locks & Keys	 	 	10.66	 	 	 	3.99	 	 	 	42.25	 	 	 	56.90	 
	8862 · Pest Control	 	 	0.00	 	 	 	112.80	 	 	 	330.96	 	 	 	443.76	 
	8864 · Pool & Spa	 	 	55.79	 	 	 	9.26	 	 	 	57.21	 	 	 	122.26	 
	8867 · Propane	 	 	40.56	 	 	 	28.47	 	 	 	103.81	 	 	 	172.84	 
	8885 · Telephone Cell & Radio	 	 	16.56	 	 	 	0.00	 	 	 	0.00	 	 	 	16.56	 
	8886 · Contract Labor	 	 	0.00	 	 	 	89.11	 	 	 	0.00	 	 	 	89.11	 
	8888 · Signage	 	 	0.00	 	 	 	23.26	 	 	 	0.00	 	 	 	23.26	 
	8890 · Office Supplies	 	 	0.00	 	 	 	52.44	 	 	 	14.54	 	 	 	66.98	 
	Total 8800 · Repairs & Maintenance	 	 	1,726.66	 	 	 	1,559.44	 	 	 	1,370.73	 	 	 	4,656.83	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Expense	 	 	7,886.66	 	 	 	7,749.62	 	 	 	7,579.59	 	 	 	23,215.87	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Net Ordinary Income	 	 	-7,886.66	 	 	 	-7,749.62	 	 	 	-7,579.59	 	 	 	-23,215.87	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Net Income	 	 	-7,886.66	 	 	 	-7,749.62	 	 	 	-7,579.59	 	 	 	-23,215.87	 

 

 

	 	Page 15 of 19	109.3. Ex 18(a)- 3rd Part - Orchards Annex March 13 Issue / R&M

 

    	 

    	 

     

Orchards Annex

Utilities Department

Actual vs. Budget and Prior Year

March 2013

 

	 	 	Current Month	 
	 	 	Actual	 	 	% to

                                                                                                                                                                                                                                                                                                             Revenue	 	 	Budget	 	 	% to

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Revenue	 	 	Variance	 	 	% to

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Revenue	 	 	Prior

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Year	 	 	% to

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Revenue	 	 	Variance	 	 	% to

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Revenue	 
	Expense	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	8500 . Utilities	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	8501 · Gas	 	 	1,700	 	 	 	1.2	%	 	 	1,822	 	 	 	1.4	%	 	 	(122	)	 	 	-1.6	%	 	 	1,735	 	 	 	1.4	%	 	 	(35	)	 	 	-0.2	%
	8502 · Electricity	 	 	180	 	 	 	0.1	%	 	 	1,418	 	 	 	1.1	%	 	 	(1,239	)	 	 	-15.8	%	 	 	1,351	 	 	 	1.1	%	 	 	(1,171	)	 	 	-6.2	%
	8503 · Water	 	 	940	 	 	 	0.7	%	 	 	829	 	 	 	0.6	%	 	 	110	 	 	 	1.4	%	 	 	790	 	 	 	0.7	%	 	 	150	 	 	 	0.8	%
	8504 · Sewer	 	 	840	 	 	 	0.6	%	 	 	835	 	 	 	0.6	%	 	 	5	 	 	 	0.1	%	 	 	796	 	 	 	0.7	%	 	 	45	 	 	 	0.2	%
	Total 8500 . Utilities	 	 	3,660	 	 	 	2.6	%	 	 	4,905	 	 	 	3.7	%	 	 	(1,245	)	 	 	-15.9	%	 	 	4,672	 	 	 	3.9	%	 	 	(1,012	)	 	 	-5.4	%
	Total Expense	 	 	3,660	 	 	 	2.6	%	 	 	4,905	 	 	 	3.7	%	 	 	(1,245	)	 	 	-15.9	%	 	 	4,672	 	 	 	3.9	%	 	 	(1,012	)	 	 	-5.4	%
	Net Income	 	 	(3,660	)	 	 	-2.6	%	 	 	(4,905	)	 	 	-3.7	%	 	 	1,245	 	 	 	15.9	%	 	 	(4,672	)	 	 	-3.9	%	 	 	1,012	 	 	 	5.4	%

 

	 	 	Year to Date	 	 	Budget

                                                                                                                                                                                                                                                                                                                                                                                                                                                                               Full Year	 
	 	 	Actual	 	 	% to

                                                                                                                                                                                                                                                                                                                                                                                  Revenue	 	 	Budget	 	 	% to

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Revenue	 	 	Variance	 	 	% to

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Revenue	 	 	Prior

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Year	 	 	% to

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Revenue	 	 	Variance	 	 	% to

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Revenue	 	 	Amount	 	 	% to

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              Revenue	 
	Expense	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	8500 . Utilities	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	8501 · Gas	 	 	7,177	 	 	 	2.8	%	 	 	5,645	 	 	 	2.2	%	 	 	1,532	 	 	 	26.8	%	 	 	5,811.78	 	 	 	2.5	%	 	 	1,365	 	 	 	5.9	%	 	 	28,500	 	 	 	2.7	%
	8502 · Electricity	 	 	2,911	 	 	 	1.1	%	 	 	4,217	 	 	 	1.7	%	 	 	(1,306	)	 	 	-22.8	%	 	 	4,021.09	 	 	 	1.7	%	 	 	(1,110	)	 	 	-4.8	%	 	 	35,200	 	 	 	3.3	%
	8503 · Water	 	 	1,634	 	 	 	0.6	%	 	 	2,432	 	 	 	1.0	%	 	 	(798	)	 	 	-13.9	%	 	 	2,198.62	 	 	 	0.9	%	 	 	(564	)	 	 	-2.4	%	 	 	8,000	 	 	 	0.7	%
	8504 · Sewer	 	 	2,509	 	 	 	1.0	%	 	 	2,506	 	 	 	1.0	%	 	 	3	 	 	 	0.1	%	 	 	3,190.27	 	 	 	1.3	%	 	 	(681	)	 	 	-2.9	%	 	 	7,900	 	 	 	0.7	%
	Total 8500 . Utilities	 	 	14,232	 	 	 	5.5	%	 	 	14,801	 	 	 	5.8	%	 	 	(569	)	 	 	-9.9	%	 	 	15,221.76	 	 	 	6.4	%	 	 	(990	)	 	 	-4.3	%	 	 	79,600	 	 	 	7.4	%
	Total Expense	 	 	14,232	 	 	 	5.5	%	 	 	14,801	 	 	 	5.8	%	 	 	(569	)	 	 	-9.9	%	 	 	15,222	 	 	 	6.4	%	 	 	(990	)	 	 	-4.3	%	 	 	79,600	 	 	 	7.4	%
	Net Income	 	 	(14,232	)	 	 	-5.5	%	 	 	(14,801	)	 	 	-5.8	%	 	 	569	 	 	 	9.9	%	 	 	(15,222	)	 	 	-6.4	%	 	 	990	 	 	 	4.3	%	 	 	(79,600	)	 	 	-7.4	%

 

 

 

 

	 	Page 16 of 19	109.3. Ex 18(a)- 3rd Part - Orchards Annex March 13 Issue

 

    	 

    	 

     

 

Orchards Annex, LLC

Utilities

January through March 2013

 

	 	 	Jan 13	 	 	Feb 13	 	 	Mar 13	 	 	TOTAL	 
	Ordinary Income/Expense	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Expense	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	8500 · Utilities	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	8501 · Gas	 	 	1,945.02	 	 	 	3,532.00	 	 	 	1,700.00	 	 	 	7,177.02	 
	8502 · Electricity	 	 	1,486.11	 	 	 	1,244.93	 	 	 	179.89	 	 	 	2,910.93	 
	8503 · Water	 	 	872.00	 	 	 	-177.21	 	 	 	939.64	 	 	 	1,634.43	 
	8504 · Sewer	 	 	0.00	 	 	 	1,668.87	 	 	 	840.33	 	 	 	2,509.20	 
	Total 8500 · Utilities	 	 	4,303.13	 	 	 	6,268.59	 	 	 	3,659.86	 	 	 	14,231.58	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Expense	 	 	4,303.13	 	 	 	6,268.59	 	 	 	3,659.86	 	 	 	14,231.58	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Net Ordinary Income	 	 	-4,303.13	 	 	 	-6,268.59	 	 	 	-3,659.86	 	 	 	-14,231.58	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Net Income	 	 	-4,303.13	 	 	 	-6,268.59	 	 	 	-3,659.86	 	 	 	-14,231.58	 

 

 

	 	Page 17 of 19	109.3. Ex 18(a)- 3rd Part - Orchards Annex March 13 Issue / Utilities

 

    	 

    	 

     

 

	Orchards Annex
	Fixed Expenses Department
	Actual vs. Budget and Prior Year
	March 2013

 

	 	 	Current Month	 
	 	 	Actual	 	 	% to

                                                                                                                                                                                                                                                                                                             Revenue	 	 	Budget	 	 	% to

                                                                                                                                                                                                                                                                                                                                                                                                                                    Revenue	 	 	Variance	 	 	% to

                                                                                                                                                                                                                                                                                                                                                                                                                                      Revenue	 	 	Prior
                                                                                                                                                                 Year	 	 	% to

                                                                                                                                                                                                                                                                                                                                                                                                                                        Revenue	 	 	Variance	 	 	% to

                                                                                                                                                                                                                                                                                                                                                                                                                                      Revenue	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9100 . Fixed Expenses	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9102 · Rent	 	 	41,243	 	 	 	29.6	%	 	 	41,130	 	 	 	31.2	%	 	 	114	 	 	 	1.5	%	 	 	26,777	 	 	 	22.2	%	 	 	14,467	 	 	 	76.5	%
	9104 · Insurance	 	 	1,854	 	 	 	1.3	%	 	 	1,854	 	 	 	1.4	%	 	 	-	 	 	 	0.0	%	 	 	-	 	 	 	0.0	%	 	 	1,854	 	 	 	9.8	%
	9105 · Interest	 	 	356	 	 	 	0.3	%	 	 	-	 	 	 	0.0	%	 	 	356	 	 	 	4.5	%	 	 	-	 	 	 	0.0	%	 	 	356	 	 	 	1.9	%
	Total 9100 . Fixed Expenses	 	 	43,453	 	 	 	31.1	%	 	 	42,984	 	 	 	32.6	%	 	 	470	 	 	 	6.0	%	 	 	26,777	 	 	 	22.2	%	 	 	16,676	 	 	 	88.2	%
	Total Other Expense	 	 	43,453	 	 	 	31.1	%	 	 	42,984	 	 	 	32.6	%	 	 	470	 	 	 	6.0	%	 	 	26,777	 	 	 	22.2	%	 	 	16,676	 	 	 	88.2	%
	Net Income	 	 	(43,453	)	 	 	-31.1	%	 	 	(42,984	)	 	 	-32.6	%	 	 	(470	)	 	 	-6.0	%	 	 	(26,777	)	 	 	-22.2	%	 	 	(16,676	)	 	 	-88.2	%

 

	 	 	Year to Date	 	 	Budget

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                Full Year	 
	 	 	Actual	 	 	% to

                                                                                                                                                                                                                                                                                                                                                                                  Revenue	 	 	Budget	 	 	% to

                                                                                                                                                                                                                                                                                                                                                                                                                                    Revenue	 	 	Variance	 	 	% to

                                                                                                                                                                                                                                                                                                                                                                                                                                      Revenue	 	 	Prior
                                                                                                                                                                 Year	 	 	% to

                                                                                                                                                                                                                                                                                                                                                                                                                                        Revenue	 	 	Variance	 	 	% to

                                                                                                                                                                                                                                                                                                                                                                                                                                      Revenue	 	 	Amount	 	 	% to

                                                                                                                                                                                                                                                                                                                                                                                                                                    Revenue	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9100 . Fixed Expenses	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9102 · Rent	 	 	44,003	 	 	 	16.9	%	 	 	43,889	 	 	 	17.2	%	 	 	114	 	 	 	2.0	%	 	 	31,317	 	 	 	13.2	%	 	 	12,686	 	 	 	54.6	%	 	 	268,688	 	 	 	25.0	%
	9104 · Insurance	 	 	5,562	 	 	 	2.1	%	 	 	5,562	 	 	 	2.2	%	 	 	-	 	 	 	0.0	%	 	 	0	 	 	 	0.0	%	 	 	5,562	 	 	 	23.9	%	 	 	-	 	 	 	0.0	%
	9105 · Interest	 	 	(416	)	 	 	-0.2	%	 	 	0	 	 	 	0.0	%	 	 	(416	)	 	 	-7.3	%	 	 	0	 	 	 	0.0	%	 	 	(416	)	 	 	-1.8	%	 	 	-	 	 	 	0.0	%
	Total 9100 . Fixed Expenses	 	 	49,149	 	 	 	18.9	%	 	 	49,451	 	 	 	19.4	%	 	 	(302	)	 	 	-5.3	%	 	 	31,317	 	 	 	13.2	%	 	 	17,832	 	 	 	76.7	%	 	 	268,688	 	 	 	25.0	%
	Total Other Expense	 	 	49,149	 	 	 	18.9	%	 	 	49,451	 	 	 	19.4	%	 	 	(302	)	 	 	-5.3	%	 	 	31,317	 	 	 	13.2	%	 	 	17,832	 	 	 	76.7	%	 	 	268,688	 	 	 	25.0	%
	Net Income	 	 	(49,149	)	 	 	-18.9	%	 	 	(49,451	)	 	 	-19.4	%	 	 	302	 	 	 	5.3	%	 	 	(31,317	)	 	 	-13.2	%	 	 	(17,832	)	 	 	-76.7	%	 	 	(268,688	)	 	 	-25.0	%

 

 

 

 

	 	Page 18 of 19	109.3. Ex 18(a)- 3rd Part - Orchards Annex March 13 Issue

 

    	 

    	 

     

 

Orchards Annex, LLC

Fixed Expenses

January through March 2013

 

	 	 	Jan 13	 	 	Feb 13	 	 	Mar 13	 	 	TOTAL	 
	Other Income/Expense	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Other Expense	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9100 · Fixed Expenses	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	9102 · Rent	 	 	1,379.58	 	 	 	1,379.58	 	 	 	41,243.46	 	 	 	44,002.62	 
	9104 · Insurance	 	 	1,853.98	 	 	 	1,853.98	 	 	 	1,853.98	 	 	 	5,561.94	 
	9105 · Interest	 	 	658.05	 	 	 	-1,429.95	 	 	 	355.89	 	 	 	-416.01	 
	Total 9100 · Fixed Expenses	 	 	3,891.61	 	 	 	1,803.61	 	 	 	43,453.33	 	 	 	49,148.55	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Total Other Expense	 	 	3,891.61	 	 	 	1,803.61	 	 	 	43,453.33	 	 	 	49,148.55	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Net Other Income	 	 	-3,891.61	 	 	 	-1,803.61	 	 	 	-43,453.33	 	 	 	-49,148.55	 
	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Net Income	 	 	-3,891.61	 	 	 	-1,803.61	 	 	 	-43,453.33	 	 	 	-49,148.55	 

 

 

	 	Page 19 of 19	109.3. Ex 18(a)- 3rd Part - Orchards Annex March 13 Issue / Fixed

 

 

    	 

    	 

     

 

Exhibit 18(c)

 

SCHEDULE OF ASSUMED LIABILITIES

 

	1. Advance Deposit Liabilities	 	$	1,954,171	 
	2. Squire Sanders & Dempsey	 	$	54,000	 
	3. Paid Time Off	 	$	111,487	 
	4. Arizona Department of Revenue	 	$	164,877	 
	5. RDS Payment	 	$	104,840	 

 

    	 

    	 

    

 

 

EXHIBIT 18(o)

 

VOTING
TRUST AGREEMENT

 

THIS VOTING TRUST AGREEMENT (the “Agreement”)
is entered into as of the 13th day of May, 2013, between (a) Orlando Figueroa (the “Trustee”);
(b) Albert B. Spector, Jr. (“Spector”); (c) all members (“Members”) of (i)
HL LLC, an Arizona limited liability company (“HL Borrower”), (ii) L’Auberge Orchards, LLC, an
Arizona limited liability company (“LA Borrower”), (iii) Orchards Annex, LLC, an Arizona limited liability
company (“Orchards Annex”), (iv) Orchards Inn & Restaurant, LLC, an Arizona limited liability company
(“Orchards Inn”), (v) L’Auberge de Sedona, LLC, an Arizona limited liability company (“L’Auberge
de Sedona”), and (vi) Taos Cantina, LLC, an Arizona limited liability company (“Taos Cantina”)
(together with Spector, each individually, a “Conveying Party” and collectively, the “Conveying
Parties”).

 

WHEREAS, the Conveying
Parties are parties to that certain “Sedona Agreement” dated March 29, 2013 (the “Sedona Agreement”)
whereby the Conveying Parties, among others, have agreed to, among other things, convey and transfer to L’Auberge Newco,
LLC, an Arizona limited liability company (“L’Auberge Newco”), Orchards Newco, LLC, an Arizona
limited liability company (“Orchards Newco”), and HL Newco, LLC, an Arizona limited liability company
(“HL Newco”) (each individually, a “Transferee Entity” and collectively, the
“Transferee Entities”) certain assets and interests owned, held and/or controlled by the Conveying Parties,
as identified in the Sedona Agreement and subject to the terms and conditions of the Sedona Agreement, for good and valuable consideration,

 

WHEREAS, the transactions
contemplated in the Sedona Agreement are set to close on or before the Closing Date, as that term is defined in the Sedona Agreement,

 

WHEREAS, as of the
date of the Sedona Agreement, the Members collectively owned or controlled, directly or indirectly, all equity interests (collectively,
the “Interests”) in the Conveying Parties which consist of uncertificated membership units in
the Conveying Parties;

 

WHEREAS, the Sedona
Agreement specifically provides that, upon the Effective Date of the Sedona Agreement, the Members will transfer all of their equity
interests in the Conveying Parties to an irrevocable trust controlled by the Transferee Entities,

 

WHEREAS, the Trustee
has agreed to accept the transfer of the Interests and to act as agent and attorney-in-fact with such irrevocable powers as are
set forth herein.

 

NOW, THEREFORE, in
consideration of the mutual promises, covenants and conditions contained herein, the parties hereto agree as follows

 

1.           Creation
of Trust. 

 

Contemporaneously herewith,
each Member will execute, and deposit in trust (the “Trust”) with the Trustee, an assignment of its Interest(s)
in the Conveying Parties, in the form attached hereto as Exhibit B (each individually, an “Assignment”
and collectively, the “Assignments”), transferring and assigning to the Trustee all of such Member’s
Interests in the Conveying Parties pursuant to the terms of this Agreement. Upon receipt by the Trustee of such Assignments and
the transfer of the Interests into the name of the Trustee, the Trustee shall hold the Interests in trust subject to the terms
of this Agreement. The Trustee shall issue and deliver to each Member for the respective Interests deposited by such Member a Voting
Trust Certificate in the form of Exhibit A attached hereto and incorporated herein by this reference (each individually,
a “Certificate” and collectively, the “Certificates”).

 

    	 

    	 

     

2.           Irrevocability

 

The Members hereby
acknowledge that, upon becoming parties to this Agreement, the deposit of the Interests with the Trustee pursuant to this Agreement
is irrevocable for the Term hereof, that such Interests shall be held and administered by the Trustee in accordance with the terms
hereof, and, as expressly provided herein, the Members are not entitled to exercise certain voting rights associated with such
Interests prior to the termination of this Agreement.

 

3.           Term.

 

The Trust created under
this Agreement shall terminate on the earlier to occur of (a) May 20, 2013, if the closing of the transactions contemplated by
the Sedona Agreement have not occurred by that date due to a default by the Transferee Entities; (b) one year and one day following
the closing of the transactions contemplated in the Sedona Agreement; and (c) the later of the termination of the Sedona Agreement
pursuant to its terms or, if the basis for the termination of the Sedona Agreement is disputed, upon final determination of such
dispute in accordance with the Dispute Resolution Mechanism attached hereto as Exhibit C and incorporated herein by this
reference. Notwithstanding the foregoing, this Agreement shall terminate upon the filing, against any Conveying Party, of an involuntary
petition for bankruptcy, an involuntary insolvency proceeding, an action for the appointment of a receiver, or any other involuntary
proceeding seeking relief from creditors of the Conveying Parties (collectively, an “Involuntary Insolvency Proceeding”),
provided however, that if the transactions contemplated in the Sedona Agreement have closed, then the Trust will
not terminate upon the filing of an Involuntary Insolvency Proceeding (the “Term”).

 

4.           Transfer
of Equity Interests to Trustee.

 

(a)          In
addition to the Assignments, the Members shall deposit with the Trustee any and all certificate(s) or other documents evidencing
ownership of the Interests, if any, duly endorsed in blank or accompanied by a properly executed assignment, all for transfer of
the Interests to the Trustee. Except as expressly provided herein, during the Term and subject to the terms of this Agreement,
the Trustee shall possess the title to the Interests and shall be entitled to exercise all rights of every kind and nature associated
with the Interests, including the right to vote the Interests in person or by proxy;

 

(b)          Each
Conveying Party agrees that the Trustee shall have the absolute right, authority and power to cause entry on the books of such
Conveying Party the fact that the Trustee is the owner of the membership interests thereof, and such books shall reflect therein
the following statement:

 

“The membership units in
the Company are subject to restrictions and agreements contained in the Voting Trust Agreement dated the ___ day of March, 2013,
a copy of which is on file with the Conveying Party.”

 

    	2

    	 

     

5.           Trust
Certificates & Transferability

 

(a)          Each
Certificate shall be registered on the books established by the Trustee for such purpose in the name of the Member for whom such
Certificate was issued. A Certificate may be transferred, in whole but not in part, by the registered holder of such Certificate,
in person or by attorney, only by surrendering such Certificate to the Trustee for transfer on such books. Upon such surrender
of a Certificate, the Trustee shall issue to the transferee of such Certificate holder a Certificate for the same number of Interests
transferred as stated on the surrendered Certificate. By accepting such certificate, such transferee shall become a party to this
Agreement. Until such Certificate is issued to such transferee, the Trustee shall treat the transferor as the owner thereof for
all purposes of this Agreement. Except as expressly provided herein, the Trustee may close such transfer books at any time prior
to the holding of meetings, the payment of dividends, or for any other purpose.

 

(b)          In
the event a Certificate is mutilated, destroyed, stolen or lost, the Trustee may, in its discretion, issue a duplicate lost Certificate,
which shall be so marked, upon receipt of (i) the existing Certificate, if mutilated, or evidence of loss, theft or destruction,
satisfactory to the Trustee; (ii) a written agreement by the holder of such Certificate in a form satisfactory to the Trustee to
indemnify and hold the Trustee harmless from any and all issues arising from or relating to the issuance or such duplicate Trust
Certificate: and (iii) payment of the Trustee’s reasonable fees and expenses incurred in connection with issuance of a duplicate
Certificate.

 

6.           Distributions
Relating to the Interests in the Conveying Parties. In the event any distribution
of additional ownership Interests in a Conveying Party is distributed or paid, in whole or in part, to a Member in a Conveying
Party, which Interest has general voting powers, then the Trustee shall receive the certificate(s) or other document(s) evidencing
ownership of such Interest directly from the Conveying Party and shall hold such certificate(s) or document(s) under and pursuant
to the terms of this Agreement. The Trustee shall issue to the Member entitled to such additional ownership Interests, Certificates
representing such additional Interest and such additional Interest shall become additional Interests subject to the terms of this
Agreement. The Members agree to execute any and all documents reasonably required by the Trustee to affect any such transfer of
additional ownership interests to the Trustee pursuant to this Section 6.

 

7.           Representations
and Warrantees

 

The Members hereby
make the following representations and warrantees:

 

(a)          Each
Conveying Party is an Arizona limited liability company in good standing with the State of Arizona;

 

    	3

    	 

     

(b)          The
Interests represent all of the Members’ Interests in each of the Conveying Parties and all of the percentage ownership of
each Conveying Party as set forth in the Recitals above.

 

(c)          The
Interests have been validly issued, fully paid for and are non-assessable; and

 

(d)          The
membership Interests in the Conveying Parties are not certificated.

 

Spector hereby
represents and warrants that the Interests represent a sufficient percentage of the ownership in each of the Conveying Parties
to effectuate the powers of the Trustee set forth herein, including, without limitation, those powers described in Section 9.

 

8.           Reorganization
of an Conveying Party

 

In the event a Conveying
Party is merged into or consolidated with another entity or all or substantially all of the assets of a Conveying Party are transferred
to another entity, the term “Conveying Party” shall include such successor entity for all purposes of this Agreement.
The Trustee shall receive and hold under this Agreement any interest evidencing ownership of the Members in such successor entity
received on account of the Interests held hereunder prior to such merger, consolidation and transfer.

 

9.           Powers
and Duties of Trustee.

 

(a)          Until
the termination of this Agreement as provided herein, and subject to the provisions of this Agreement, the Trustee shall have the
right to exercise, in person, all rights and powers of a Member, manager or managing member of each Conveying Party; provided,
however, that except for the rights and powers to act and vote set forth in Section 9(b), below, for which the Trustee
has the sole and absolute power to vote in his sole and absolute discretion, the Trustee shall, as to any particular matter or
matters to be acted upon at any meeting of owners, managers or Members of a particular Conveying Party cause to be mailed or delivered
to the registered holders of the outstanding Certificates, proxies or powers of attorney, in such form as the Trustee may deem
proper, authorizing the respective registered holders of the Certificates to vote or act upon such matter(s) in respect of the
number of Interest in such Conveying Party represented by their respective Certificates. Except for the rights and powers to act
and vote set forth in Section 9(b), below, for which the Trustee has the sole and absolute power to vote in his sole and absolute
discretion, the Trustee shall vote and act in a manner consistent with the majority votes of the registered holders of the Certificates
pursuant to the proxies and/or powers of attorney received by the Trustee from the Certificate holders

 

(b)          Notwithstanding
the provisions of Section 9(a), above, the Trustee shall have the sole and absolute power to act and vote in his sole and absolute
discretion to prevent any of the following:

 

(1)         The
amendment, from time to time, of (i) the articles of incorporation, articles of organization, certificate of formation, the bylaws
and/or the operating agreement, including any and all amendments thereto now or hereafter existing, as the case may be, of any
Conveying Party or (ii) this Agreement;

 

    	4

    	 

     

(2)         The
mortgage, hypothecation or pledge of properties and assets of any Conveying Party or of any part thereof;

 

(3)         The
sale, exchange, or other disposition, of all, or any part, of the franchises, properties and assets of any Conveying Party for
such consideration, and upon such terms and conditions, as the Trustee may determine; and

 

(4)         The
voluntary filing of a bankruptcy petition or an action for the assignment for the benefit of creditors, or other bankruptcy relief
or other relief from creditors, including reorganization, liquidation, or similar relief from creditors of the Conveying Parties.

 

(c)          The
Trustee shall comply with, and shall be bound by, the applicable laws of the State of Arizona, including those governing limited
liability companies. Further, the Trustee shall be, and acknowledges and agrees that it is, subject to personal jurisdiction in
the State of Arizona, and that venue is proper in any court of competent jurisdiction in the State of Arizona. Neither the appointment
of the Trustee nor anything else in this Agreement shall be construed to (a) place the control of the Conveying Parties beyond
the power of the courts in the State of Arizona or (b) be contrary to the laws of the State of Arizona.

 

10.         Liability
of Trustee. 

 

(a)          The
Trustee is a fiduciary and, as such, occupies a position of trust and confidence with respect to each Conveying Party. Accordingly,
in exercising its rights and fulfilling its responsibilities hereunder, the Trustee shall be required to act with the diligence
of a prudent person in similar circumstances dealing with the property of others. In voting the Interests held hereunder, the Trustee
shall exercise his best judgment to select suitable directors of a Conveying Party that is a corporation or manager of a Conveying
Party that is a limited liability company and shall, otherwise, participate as a Conveying Party in the management of such Conveying
Party’s affairs insofar as it may be entitled, so as to be apprised of the affairs of such Conveying Party;

 

(b)          Notwithstanding
Subsection 10(a) hereof, the Trustee shall incur no liability to any Conveying Parties or any third party for any mistakes
or errors in judgment or for any act performed or omitted unless such mistake, error, performance or omission shall have been fraudulent,
in bad faith, willful misconduct or gross negligence. Subject to the foregoing, the Conveying Party shall indemnify, defend and
hold harmless, and pay all judgments and claims against the Trustee relating to any and all liability, damage and expenses (including
attorneys’ and experts [testifying and consulting] fees and costs) incurred by the Trustee in any matter in conjunction with
the performance of his duties under this Agreement;

 

    	5

    	 

     

(c)          The
Trustee or any person, entity, or both, in which it may be, directly or indirectly, interested, or in which any of its associates,
at any time, may be or become, in any way and to any extent interested, may not derive profit and advantage from the Conveying
Parties, or any successor, allied or subsidiary entities, or its or their stock obligations, properties, businesses and affairs,
or in any and from any matter or thing, in any way, related to and in connection with the Conveying Parties; and

 

(d)          The
Trustee shall not be personally responsible with respect to any action taken pursuant to his or her vote cast in any matter whatsoever
or act committed or omitted to be done under this Agreement, provided such commission or omission does not amount to willful misconduct
or gross negligence on his or her part.

 

11.         Termination

 

(a)          The
trust created under this Agreement shall terminate upon the expiration of the Term set forth in Section 3 hereof.

 

(b)          Upon
the termination of the Trust created under this Agreement:

 

(i)          The
Trustee, in exchange for and upon surrender of any outstanding Certificates and upon the payment of any transfer tax, charge or
deduction which the Trustee may be required to make, shall deliver to the registered holder of such Certificate assignment(s) of
membership interest(s) for the number of membership units represented by such Certificate. The holder of such Certificate shall
deliver to the Trustee such Certificate duly endorsed in blank for transfer and cancellation; or

 

(ii)         Upon
the delivery of all such membership units to the holders of Certificates, the Trustee shall thereby be forever, fully and unconditionally
released and discharged, as well as its agents and attorneys, from all liability and accountability under this Agreement of every
kind, character and description whatsoever. The Trustee shall make delivery or distribution of such membership units, for the Interests
to the person or persons whose names appear upon the books of the Trustee us the owners of such Certificates, and in doing so,
shall be fully protected notwithstanding that any such Certificates is not produced or surrendered.

 

12.         Compensation
and Reimbursement of Trustee.

 

The Trustee shall be
entitled to receive, and shall be paid by the Conveying Parties, the sum of $12,000 ($2,000 for each of the entities for which
Members are executing Assignments pursuant to this Agreement). Additionally, the Trustee shall have the right to incur and pay
reasonable expenses and charges and to employ and pay reasonable expenses and charges of such agents, attorneys, and counselors
as he may deem necessary and proper for coming this Agreement into effect and in maintaining the same on an ongoing basis. All
such expenses incurred by the Trustee shall be paid, or reimbursed to the Trustee, by the Conveying Parties. Nothing contained
in this Agreement shaft disqualify or incapacitate the Trustee from serving as an officer, director, or manager, or in any other
capacity for one or more of the Conveying Parties.

 

    	6

    	 

     

13.         Deposit
of Copy.

 

A copy of this Agreement
and of every supplement or amendment hereto shall be filed in the principal office of each of the Conveying Parties, and
shall be open at all reasonable times to the inspection of any Member of each Conveying Party, or any Certificate holder under
this Agreement.

 

14.         Miscellaneous.

 

(a)          Notices.
Any notice or communication under this Agreement shall be delivered either personally or by mail, postage prepaid, to the addresses
of the parties hereto, as the parties may from time to time provide to the Trustee for this purpose. A notice or communication
delivered to a party to this Agreement at the most recent address provided to the Trustee shall be deemed delivered immediately
if delivered in person, or, if mailed, seventy-two (72) hours after deposit in the United States Postal Service Mail.

 

(b)          Attorneys’
Fees. If any party to this Agreement finds it necessary to bring any action a law or in equity to enforce any of the terms
of this Agreement, the party prevailing in any such action or proceeding shall be entitled to recover reasonable attorneys’
fees and costs against the other party. In the event a judgment is secured by such prevailing party, all such attorney’s
fees and costs shall be determined by the court and not by a jury and shall be included us a part of such judgment award. For the
purposes of this Agreement, the phrase “prevailing party” shall be that party who successfully attains,
by award, judgment or settlement, substantially all of the relief originally sought by such party.

 

(c)          Arizona
Law. This Agreement shall be governed by and interpreted in accordance with the laws of the State of Arizona.

 

(d)          Time
is of the Essence. The parties to this Agreement agree that time is of the essence with respect to this Agreement.

 

(e)          Integrated
Agreement. This Agreement constitutes the entire understanding and agreement among the parties hereto with respect to these
matters, and there are no agreements, understandings, restrictions, representations, or warranties among the parties other than
those set forth herein or herein provided for. The parties acknowledge the existence of the Sedona Agreement of even dale herewith.

 

(f)          Amendments.
This Agreement may not be altered or amended, except by a writing executed by each of the Members and the Trustee.

 

(g)          Severability.
Every provision of this Agreement is intended to be severable. In the event any term or provision hereof is declared illegal or
invalid (or any reason, such illegality or invalidity shall not affect the validity of the remainder of this Agreement.

 

    	7

    	 

     

(h)          Pronouns
and Section Headings. All pronouns and any variations thereof shall be deemed to refer to the masculine, feminine, the neutral
or the plural, as the identity of the person or persons may require. Section and other headings contained in this Agreement are
for reference purposes only and are in no way intended to describe, interpret, define or limit the scope, intent, or extern of
this Agreement or any provision hereof.

 

(i)          Further
Execution. The Conveying Parties, the Members, and the Trustee hereby agree to execute, acknowledge and deliver any document
or instrument, or both, that may be necessary or proper to carry out the purposes of intent of this Agreement.

 

(j)          Execution
in Counterpart. This Agreement may be executed in counterparts, all of which taken together shall be deemed one original.

 

(k)          Computation
of Time. In computing any period or time pursuant to this Agreement, the day of the act, date of notice or the event from which
the designated period or time beings to run will not be included. Days shall mean calendar days and the last day of the period
so computed will not be included, unless it is a Saturday, Sunday or legal holiday in the state of Arizona, in which event the
period shall run until the end of the nom day which is not a Saturday, Sunday or legit holiday in the state of Arizona.

 

(l)          Parties
in Interest. Each and every covenant, term, provision, and agreement contained herein shall be binding upon and shall inure
to the benefit of the heirs, successors and assigns of the respective parties hereto.

 

The parties have executed
this Agreement as of the day and year first written above.

 

[signatures on
the following pages]

 

    	8

    	 

     

Signature Page
to Voting Trust Agreement

 

	 	TRUSTEE:
	 	 
	 	 
	 	ORLANDO FIGUEROA

 

    	9

    	 

     

	 	Signature Page to Voting Trust Agreement

 

	 	 
	 	ALBERT B. SPECTOR, JR.:
	 	 
	 	 

 

    	10

    	 

     

	 	Signature Page to Voting Trust Agreement
	 	 
	 	MEMBERS OF HL LLC, an Arizona limited
	 	liability company:

 

	 	 
	 	Al Spector
	 	 
	 	 
	 	Marie Berg

 

    	11

    	 

     

Signature Page
to Voting Trust Agreement

 

	 	MEMBERS OF L’AUBERGE ORCHARDS, 
	 	LLC, an Arizona limited liability company:
	 	 
	 	SAL Sedona LLC

 

	 	 
	 	By:	 
	 	Its:	 

 

	 	 
	 	Al Spector
	 	 
	 	 

 

    	12

    	 

     

	 	Signature Page to Voting Trust Agreement
	 	 
	 	MEMBERS OF ORCHARDS ANNEX, LLC, an
	 	Arizona limited liability company:
	 	 
	 	Spector Offices, LLC

 

	 	 
	 	By:	 
	 	Its:	 

 

	 	SP Acquisitions, LLC
	 	 
	 	 
	 	By:	 
	 	Its:	 

 

    	13

    	 

     

Signature Page
to Voting Trust Agreement

 

	 	MEMBERS OF ORCHARDS INN & 
	 	RESTAURANT, LLC, an Arizona limited 
	 	liability company:

 

	 	L’Auberge Orchards LLC
	 	 
	 	 
	 	By:	 
	 	Its:	 

 

    	14

    	 

     

Signature Page
to Voting Trust Agreement

 

	 	MEMBERS OF L’AUBERGE DE SEDONA, 
	 	LLC, an Arizona limited liability company:

 

	 	L’Auberge Orchards LLC
	 	 
	 	 
	 	By:	 
	 	Its:	 

 

    	15

    	 

     

Signature Page
to Voting Trust Agreement

 

	 	MEMBERS OF TAOS CANTINA, LLC, an 
	 	Arizona limited liability company:

 

	 	SP Acquisitions, LLC
	 	 
	 	 
	 	By:	 
	 	Its:	 

 

    	16

    	 

     

EXHIBIT A

 

VOTING TRUST
CERTIFICATE

 

THIS CERTIFIES that ___________________,
has deposited with [Trustee] (the “Trustee”), pursuant to the terms and conditions of the Voting Trust
Agreement dated effective as of March ___, 2013 (the “Voting Trust Agreement”), __________________ membership
units in ____________________, LLC, an Arizona limited liability company.

 

THE INTEREST REPRESENTED BY THIS CERTIFICATE
SHALL NOT BE SOLD, TRANSFERRED, CONVEYED, ASSIGNED, MORTGAGED, OR PLEDGED IN WHOLE OR IN PART, EXCEPT IN ACCORDANCE WITH THE TERMS
OF THE VOTING TRUST AGREEMENT.

 

IN WITNESS WHEREOF, the Trustee has caused
this Certificate to be executed effective as of May ___, 2013.

 

	 	TRUSTEE:
	 	 
	 	 
	 	By:	 

 

    	17

    	 

     

EXHIBIT B

 

ASSIGNMENT BY MEMBER

 

FOR VALUE RECEIVED
and pursuant to and subject to the terms of that certain Voting Trust Agreement dated May ___, 2013 (the “Voting Trust
Agreement”), ______________________________ (“Member”) hereby assigns and transfers
unto ______________________________ (the “Trustee”) all of its membership units and interests in
and to ___________________ (“Conveying Party”) and does hereby irrevocably constitute and appoint Trustee
as Attorney-in-Fact to transfer said membership units and interests on the books of ____________ to the Trustee with full power
of substitution in the premises.

 

DATED ____________________, 20__.

 

	 	 
	By:	 	 
	 	 	 

 

    	18

    	 

    

 

EXHIBIT C

 

DISPUTE RESOLUTION
MECHANISM

 

1.           Exclusions.
The provisions of this Dispute Resolution Mechanism shall not apply to any controversy, claim or dispute of whatever nature arising
out of the termination of this Agreement.

 

2.           Negotiations.

 

2.1         Subject
to Section 1, above, the Parties shall attempt in good faith to resolve any other controversy, claim or dispute of
whatever nature arising between the Parties relating to the foregoing Voting Trust Agreement or the construction, interpretation,
performance or breach of the Voting Trust Agreement, (a “Dispute”), promptly by negotiation between executives
who have authority to settle the Dispute (“Senior Party Representatives”).

 

2.2         Either
Party may give the other Party written notice (a “Dispute Notice”) of any Dispute that has not been resolved
in the normal course of business. Within five (5) days after delivery of the Dispute Notice, the receiving party shall submit to
the other a written response (the “Response”). The Dispute Notice and the Response shall include:

 

a.           A
statement setting forth the position of the Party giving such notice and a summary of arguments supporting such position; and

 

b.           The
name and title of such Party’s Senior Party Representative and any other persons who will accompany the Senior Party Representative
at the meeting at which the Parties will attempt to settle the Dispute.

 

2.3         No
later than ten (10) days after delivery of the Dispute Notice, the Senior Party Representatives of both Parties shall meet at a
mutually acceptable time and place, and then as often as they reasonably deem necessary, to attempt to resolve the Dispute. All
reasonable requests for information made by one Party to the other will be honored.

 

2.4         If
the Dispute has not been resolved within thirty (30) days after delivery of the Dispute Notice, either Party may initiate arbitration
of the Dispute as provided below.

 

2.5         All
negotiations under this Section 2 shall be treated as compromise and settlement negotiations. Nothing said or disclosed,
nor any document produced, in the course of those negotiations that is not otherwise independently discoverable shall be offered
or received as evidence or used for impeachment or for any other purpose in any current or future arbitration or litigation.

 

    	 

    	 

     

3.           Arbitration.

 

3.1         If
the Dispute has not been resolved by negotiation as above provided, the Parties shall engage in binding arbitration (“Arbitration”)
to resolve the Dispute as set forth below.

 

3.2         If
the Dispute has not been resolved within thirty (30) days after delivery of the Dispute Notice, either Party may initiate arbitration
of the Dispute by providing written notice to the other within such thirty (30) day period, in which event, the Dispute shall immediately
be referred to binding arbitration pursuant to and in accordance with (a) the Federal Arbitration Act, Title 9, United States Code,
(b) the then-current rules for arbitration of commercial disputes of the American Arbitration Association (the “AAA”),
and (c) the Special Rules set forth below. In the event of any inconsistency, the Special Rules shall control; provided, however,
that in the event of any inconsistency between the timeframes set forth in Section 3.3 c. or d. below and any rules established
by the arbitrator or the then-current rules for arbitration of commercial disputes of the AAA, the rules established by the arbitrator
or by the AAA shall control.

 

3.3         Special
Rules.

 

a.           The
Arbitration shall be conducted in Maricopa County, State of Arizona.

 

b.           The
Arbitration shall be administered by AAA, who will appoint an arbitrator. If AAA is unwilling or unable to administer the Arbitration,
then any Party hereto may substitute another arbitration organization that has similar procedures to AAA and that will observe
and enforce any and all provisions of this dispute resolution mechanism.

 

c.           The
Arbitration hearing will be commenced as soon as practicable, but no later than thirty (30) days from the date the Arbitration
is referred to AAA, and will completed no later than thirty (30) days from commencement; provided, however, that upon a showing
of good cause, the arbitrator shall be permitted to extend the commencement of the hearing for up to an additional fifteen (15)
days.

 

d.           The
judgment and award, if any, of the arbitrator shall be issued within fifteen (15) days of the close of the hearing. The arbitrator
shall provide a concise written statement setting forth the reasons for the judgment and award, if any. The arbitration award,
if any, may be submitted to any court having jurisdiction to be confirmed and enforced, and such confirmation and enforcement shall
not be subject to arbitration.

 

e.           Any
dispute concerning this Arbitration provision, including any disputes as to the validity or enforceability of this provision, or
whether a Dispute is subject to arbitration, shall be determined by the arbitrator; provided, however, that the arbitrator shall
not be permitted to vary the express terms of these Special Rules.

 

    	2

    	 

     

f.            The
arbitrator shall have the power to award legal fees and costs pursuant to the terms of the foregoing Voting Trust Agreement and
applicable state law.

 

3.4         By
agreeing to the foregoing, the parties irrevocably and voluntarily waive any right they may have to a trial by jury in respect
of any Dispute.

 

3.5         The
arbitrator’s decision will be final and binding on the parties and will not be subject to appeal to any court or forum.

 

3.6         The
Arbitration proceeding shall remain confidential in all respects, including all arbitration filings, deposition transcripts, documents
produced or obtained in discovery, or other material provided by and exchanged between the parties and the arbitrator’s findings
of fact and conclusions of law. Following receipt of the arbitrator’s decision, each party agrees to return to the producing
party within thirty (30) days the original and all copies of documents exchanged in discovery and at the arbitration hearing, except
those documents required to be retained by counsel pursuant to law. Further, the parties to the arbitration also agree not to discuss
the amount of the judgment or arbitration award, if any.

 

3.7         All
costs, expenses and compensation charged by the arbitrator (“Arbitration Costs and Compensation”) shall
initially be paid in equal one-half shares by the Parties, but such Arbitration Costs and Compensation shall be subject to reallocation
by the arbitrator at the conclusion of the Arbitration hearing and consistent with the terms of the Voting Trust Agreement.

 

    	3

    	 

     

Exhibit 19(g)

 

Avion Noble
House Payment Terms

 

NONE

 

    	 

    	 

    

 

 

Exhibit 39

 

NOBLE HOUSE

HOTELS & RESORTS

 

October 1, 2012

 

Al Spector/Neil Elsey

L'Auberge de Sedona

301 L'Auberge Lane

Sedona, AZ 86336

 

	 	Re:	Letter of Intent

L'Auberge Orchards, LLC

 

Gentlemen:

 

Noble House Hotels
and Resorts, Ltd., a Texas Limited Partnership ("Noble House") is pleased to present this Letter of Intent
to purchase all of Real Property and Improvements owned in fee simple by the wholly owned subsidiaries of L'Auberge Orchards, LLC
(the "LLC"), consisting of the real property and Improvements, the personal property, and the business
enterprise commonly known and referred to as the L'Auberge Hotel & Resort, located at 301 L'Auberge Lane, Sedona, AZ 86336
(collectively the "Resort"), more particularly described in Exhibit A attached hereto (the "Resort
Legal Description"); and the real property and improvements, the personal property, and the business enterprise commonly
known as the Orchards Inn located at 254 N Highway 89A, Sedona, Arizona 86336 (collectively the "Motel, more
particularly described in Exhibit B attached hereto (the "Motel Legal Description"). Buyer proposes
to acquire the Resort and the Motel, on the following terms, to be integrated into a definitive Purchase and Sale Agreement (the
"Definitive Agreement") after mutual execution of this Letter of Intent.

 

	 	1.	Parties: Record title owner(s) of Resort and Motel ("Seller"); Noble House, its affiliates, assigns and joint venture parties ("Buyer" or "Noble House"). "Buyer" and "Seller" are hereinafter sometimes collectively referred to as "Parties".

 

	 	2.	Transaction: Buyer proposes to enter into a Purchase and Sale Agreement to purchase and acquire from Seller the Resort and the Motel for a total Purchase Price of $82,500,000 payable as follows: Buyer to pay Cash into Escrow in the amount of $25,000,000, and Buyer to assume a restructured first mortgage loan on the Resort property in the amount of $57,500,000 with interest at 5.5%, a ten year term with a 25 year amortization, and payable interest only for the first year of the restructured loan. Buyer to spend additional capital consideration for immediate repairs and renovations as described in the attached Exhibit 1.

 

	 	3.	Title: At the Closing, upon receipt of the Purchase Price described above, Seller will deliver to Buyer the Motel free and clear of any encumbrances, claims or liens, and will deliver to Buyer the Resort free and clear of liens, claims and encumbrances, except for the restructured first mortgage note and obligation in the amount of $57,500,000 (the "Permitted Encumbrance").

 

Individual Distinction.
Collective soul.

 

600 6th Street South   Kirkland,
WA 98033    Tel: 425.827.8737    Fax: 425.636.56261  Web: noblehousehotels.com

 

    	 

    	 

     

Page 2 of 8

 

	 	4.	Assets Included: The acquisition will consist of the Resort and Motel, all of Seller's right, title and interest in and to: (a) the real property (Exhibit A), the existing eighty seven (87) rooms and any entitlements for future expansion, the personal property including the 'prefab' units currently in inventory and any additional 'prefab units' to be acquired, spa, furniture, fixtures and equipment, operating supplies, expendables, rolling stock, intangible property, books, records and data related to the ownership and operation of the Resort, choses in action, artwork and all property used in conjunction with the business endeavor and operation of the Resort, except those items designated herein as "Excluded Assets," which Excluded Assets shall not be considered to be a part of the sale and transfer; and (b) the real property (Exhibit B), the existing forty two (42) rooms, along with that certain lease for 28 additional rooms located adjacent to the Property in Canyon Portals ("Orchards Annex Lease"), and any entitlements for future expansion, the personal property, furniture, fixtures and equipment, operating supplies, expendables, rolling stock, intangible property, books, records and data related to the ownership and operation of the Motel, choses in action, artwork and all property used in conjunction with the business endeavor and operation of the Motel, except those items designated herein as "Excluded Assets," which Excluded Assets shall not be considered to be a part of the sale and transfer.

 

Orchards Annex Lease:
Upon Closing and assignment of the Orchards Annex Lease, Orchards Annex LLC shall receive $300,000 from the Closing proceeds, provided
there are sufficient proceeds in Escrow to satisfy this and all other Purchase Price obligations of Seller. Buyer shall not be
required to deliver any additional Purchase Price consideration to Escrow over and above the requirements of Article 2 above. After
the Closing, Buyer shall make monthly lease payments on the Orchards Annex Lease according to the present lease.

 

	 	5.	Excluded Assets: Wine, liquor and food inventories. These assets to be purchased separately at closing at their cost basis.

 

	 	6.	Taos Cantina Restaurant Lease: At the Closing, Buyer shall execute a lease with an affiliate of Seller for the Taos Cantina Restaurant (the "Lease") located on the Motel property. The Lease term shall be for a period of ten (10) years with two (2), ten (10) year options. The rent shall be the greater of $178,000 NNN or 8% of the gross sales.

 

	 	7.	Avion Retention Agreement: The fee due and payable under the Avion Retention Agreement shall be paid from proceeds at Closing.

 

	 	8.	Initial and Non-Refundable Deposits: Within three (3) days following the execution of the Definitive Agreement, the Buyer shall place a refundable cash deposit of two hundred and fifty-thousand dollars ($250,000) into an escrow account (the "initial Deposit"). Before or at the close of the Due Diligence Period (defined below), unless the Buyer elects not to proceed with the acquisition, the Buyer shall deposit an additional two hundred fifty thousand dollars ($250,000) in cash into escrow, and the entire deposit of five hundred thousand dollars ($500,000) (in aggregate, the "Deposit") will be non-refundable unless the transaction fails to close due to no fault of Buyer or due to failure to meet Closing Conditions. This Deposit, along with all interest earned, will be credited against the Buyer's obligation to fund the Purchase Price.

 

Individual distinction.
Collective soul.

 

600 6th Street South          Kirkland,
WA 98033          125.827.8737          1-25.636.5626          noblehousehotels.com

 

    	 

    	 

     

Page 3 of 8

 

	 	9.	Due Diligence: Buyer will have ninety (90) days from the execution of the Definitive Agreement ("Due Diligence Period") to complete its due diligence investigation which will include but not be limited to: (a) the review of all available Resort and Motel documents; (b) a review of any parking issues with respect to the Resort; and (c) environmental issues raised by a Phase 1 Environmental survey; (d) Review of Orchards Lease along with indemnity provisions from the existing lease. During the Due Diligence Period, Buyer shall in its sole and absolute discretion review and approve or disapprove the physical and economic condition of the Hotel, title to the Hotel, a recent (within 30 days) preliminary title insurance commitment on the real property to be provided by Seller, survey of the real property, all leases, any options or grants of first refusal, licenses (including liquor licenses issued by the State of Arizona), agreements, environmental issues, permits, entitlements, zoning matters, water rights, building and expansion potential, books and records of the business enterprise of the Hotel, including but not limited to lodging, food and beverage, and other Issues affecting the Hotel. In connection with such approval process, Seller shall make the Hotel books and records, and all other documents affecting the Hotel reasonably available to Buyer, its lawyers, engineers, architects and accountants and other representatives, subject to reasonable advance notice, and Seller shall reasonably cooperate with the approval process. In connection with any proposed loan restructure and modification, Seller and Buyer will jointly meet with secured lenders to discuss such objections, and Seller will arrange such meetings with lenders.

 

	 	10.	Definitive Agreement: Counsel for Seller will provide the Parties with drafts of a Purchase and Sale Agreement (the "Definitive Agreement") within ten (10) days of the mutual execution of this Letter of Intent. The Parties will use their reasonable best efforts to mutually approve and execute a Definitive Agreement on or before the thirtieth (30) day following delivery of a draft. The Definitive Agreement shall contain such terms, conditions, representations and warranties as are customary for this type of transaction and are mutually acceptable to the Parties.

 

	 	11.	Confidentiality: The Parties agree and recognize that the transactions contemplated herein and the due diligence investigation preceding those transactions will require disclosure by the Parties to each other of confidential and proprietary information. The Parties mutually agree that each party will cause its officers, counsel and authorized representatives to hold in confidence, and not disclose to others, for any reason whatsoever, sales, operating, tax and financial information received from the other party in connection with the transactions contemplated herein that either party identifies with reasonable specificity in writing as proprietary ("Proprietary information"), except to the extent that such Proprietary Information was previously known to the other party or otherwise available from third persons without restriction on its further use or disclosure or otherwise not legally protectable as Proprietary Information. In the event the transactions contemplated herein are not consummated, for whatever reason, all Proprietary Information of each party in the possession of the other party will be promptly returned to its owner, and used for no other purposes whatsoever.

 

Individual Distinction..
Collective soul.

 

600 6th Street South          Kirkland,
WA 98033          425.827.87'17          125.636.5626          nohlchousrhotels.com

 

    	 

    	 

     

Page 4 of 8

 

	 	12.	Brokers: Except for Buyer's responsibility to pay a commission or fee to Snyder Nationwide Real Estate in conjunction with the proposed transaction, the Parties warrant that no broker, finder, or other party has been engaged by either and would be entitled to any fee, commission or other compensation as a result of the consummation of the transactions contemplated herein, and the Parties agree to defend and hold the other harmless from and against any commissions of other fees claimed by any such broker or finder.

 

	 	13.	Warranty and Indemnification: Seller warrants to Buyer, its agents and employees, that no person or entity has any lawful claim against the Parties, their agents and employees, arising from or relating to, the negotiation and execution of this Letter of Intent, a Definitive Agreement or Buyer's contemplated investment in the LLC, Resort or Motel. Seller agrees to indemnify Buyer, its agents and employees, against all claims, damages, losses and expenses of any nature, including legal fees asserted to incurred by Buyer and/or its agents and employees, in any legal proceeding brought by any third party or entity based upon such third party's or entity's claim or interest in the LLC, Resort or Motel or arising from or related to the negotiation and execution of this Letter of Intent or Buyer's contemplated acquisition of the Resort and/or Motel.

 

	 	14.	Closing Costs and Expenses: The base cost of an A.L.T.A. title policy shall be paid by Seller. The incremental cost of an A.L.T.A. title policy and any endorsements requested by Buyer shall be paid by Buyer; any endorsements required by Seller shall be paid by Seller. The escrow fee of Escrow Holder shall be shared equally by Buyer and Seller. Seller shall pay all state and local transfer taxes, if any. Buyer shall pay the recording fees in connection with recording of the Deed. Buyer and Seller shall each pay their respective fees and costs incurred by Escrow Holder on their respective behalf. The cost of any A.L.T.A. surveys obtained by Buyer shall be paid by Buyer. Buyer and Seller shall each pay the fees and expenses of their own attorneys, accountants and other advisors retained except as otherwise provided in this paragraph, all other expenses hereunder shall be allocated between the Parties in accordance with the custom for similar commercial real property transactions in the State of Arizona.

 

Laivicluat distinction.
Collective soul.

 

600 6th Street South          Kirkland,
WA 98033          425.827.8737          425.636.5626          noblehousehotels.com

 

    	 

    	 

     

Page 5 of 8

 

	 	15.	Closing Prorations: The following prorations shall be made between Seller and Buyer on the Close of Escrow: Real and personal property taxes and assessments shall be prorated as of the Closing Date; Rents under any leases and/or concessions for the Resort and Motel; Security Deposits— Buyer shall receive a credit against the Purchase Price and Seller shall be charged with any security deposits and advanced rentals in the nature of a security deposit made by tenants under a lease or concession agreement; Utilities shall be prorated as of the Close of Escrow; Guest Ledger Receivables; any amounts prepaid or payable under any contract rights shall be prorated as of the Close of Escrow; Advance Deposits; Buyer shall receive a credit against the Purchase Price for Advance Deposits to the extent the Advance Deposits related to period after the Close of Escrow; Petty Cash Funds; Gift Certificates; Buyer shall purchase and Seller shall sell to Buyer (or receive a credit therefor) all petty cash funds and cash in house at 100% of fair value at the Close of Escrow; Accounts Payable; Buyer shall be responsible for all accounts payable related to the Resort and Motel which accrue on or after the Closing. Seller shall be responsible for and shall pay all accounts payable related to the operation of the Resort and Motel accruing before the Closing, and Buyer shall be responsible for all such taxes accruing after the Closing; Receivables; Seller shall retain all receivables of the Hotel as of the Closing.

 

	 	16.	Resort and Motel Management: Seller will deliver operation and management of the Resort and Motel to Buyer upon execution of the Definitive Agreement, free and clear of any claims or encumbrances regarding hotel management rights, including but not necessarily limited to a mutual termination agreement regarding any current management contract between Seller and any third party. Seller and an affiliate of Buyer will execute a mutually agreeable Resort and Hotel Management Agreement within ten (10) days of execution of this Letter of Intent.

 

	 	17.	Consulting Agreement: Notwithstanding any other provision herein and contemporaneous with the Closing, Buyer shall enter into a consulting agreement with Al Spector beginning at Closing, payable at $10,000/month for 36 months. Upon the mutual execution of the Definitive Agreement Seller shall enter into a Management Agreement with Noble House Hotels and Resorts to manage the Resort. Until the close of escrow, Seller is to receive an amount equal to Twenty Seven Percent (27%) of the gross management fees of Resort, to be paid to Seller monthly within 5 days of Noble House receipt of management fees.

 

	 	18.	Liquor License: During the Due Diligence period, the Parties shall jointly pursue the transfer of the existing liquor license of the Resort and Motel, or issuance of a new liquor license in the name of Buyer. The Parties will cooperate with each other to achieve a successful transfer or new issuance prior to Closing. Transfer of the existing or issuance of a new license shall be a Condition of Closing. Buyer represents to Seller that its affiliates are holders of several privilege alcoholic beverage licenses in various jurisdictions and anticipates no resistance to the transfer of the current Resort and Motel licenses.

 

	 	19.	Exclusivity: From and after the date hereof and for a period ending coterminous with the Closing, each party shall proceed in good faith to diligently negotiate and execute the Definitive Agreement contemplated herein and otherwise perform their obligations hereunder. While this Letter of Intent and/or the Definitive Agreement remains in effect, the Seller shall take the Property off the "Sale" market, and not entertain or offer for sale the Interests, the Resort and the Motel (including soliciting or discussing 'backup offers' with others) or carry on negotiations with respect to the sale thereof, with any party other than Buyer. Notwithstanding anything herein or otherwise, if a Definitive Agreement is not entered into and escrow opened prior to November 14, 2012, then the Letter of Intent and exclusivity shall terminate, unless extended by the Parties.

 

Individual distinction.
Collective soul.

 

600 6th Street South          Kirkland,
WA 98033          425.827.8737          •          425.636.5626          noblehousehotels.corn

 

    	 

    	 

     

Page 6 of 8

 

	 	20.	Governing Law: This letter shall be governed by the laws of the State of Arizona.

 

	 	21.	Closing: Closing to occur on or before forty five (45) days after the expiration of the Due Diligence Period, unless that date is extended by mutual agreement of the Parties.

 

This Letter of Intent
is intended to be a statement of the Parties' intent in principle, and except for the provisions of Paragraphs 9 and 11, is not
intended to be a binding contract. If the contents of this letter are acceptable to Seller, please execute and return the enclosed
copy to the undersigned. This Letter of Intent shall automatically expire at 5:00 p.m. (PDT) on November 14, 2012, If the undersigned
has not received a copy of the fully executed letter by that time, the terms of the letter shall automatically expire and neither
party shall have any obligations to the other party pursuant to the terms of this Letter of Intent.

 

Thank you for your consideration of this
Letter of Intent.

 

Very truly yours,

 

NOBLE HOUSE HOTELS & RESORTS, LTD. 

A Texas Limited Partnership

 

	By:	Westgroup Partner, Inc.	 
	 	a California Corporation	 

 

	By:	/s/ Patrick R. Cole	 
	 	Patrick R. Colee 
	 	Chairman

 

Agreed to and Accepted this                    day
of ___________________, 2012:

 

SELLER:

 

L'AUBERGE ORCHARDS, LLC,

an Arizona limited liability company

 

	By:	 	 
	 	Its:	 

 

Individual distinction.
Collective soul.

 

600 6th Street South          Kirkland,
WA 98033          425.827.8737          •          425.636.5626          noblehousehotels.corn

 

    	 

    	 

     

Page 7 of 8

 

Acknowledged this ____ day of _______________________________,
2012:

 

L'AUBERGE DE SEDONA, LLC, an Arizona limited liability company

 

By:

 

	 	Its:	 	 

 

ORCHARDS INN & RESTAURANT, LLC, an Arizona limited liability
company

 

By:

 

	 	Its:	 	 

 

ORCHARDS ANNEX LEASE LLC, an Arizona limited liability company

 

By:

 

	 	Its:	 	 

 

Individual distinction.
Collective soul.

 

600 6th Street South          Kirkland,
WA 98033          425.827.8737          •425.636.5626          noblehousehotels.corn

 

    	 

    	 

     

Page 8 of 8

 

 

 

 

ATTACHMENTS

 

	EXHIBIT 1	Proposed Development
	 	 
	EXHIBIT A	Resort Legal Description
	 	 
	EXHIBIT B	Motel Legal Description

 

Individual distinction.
Collective soul.

 

600 6th Street South          Kirkland,
WA 98033          425.827.8737          •          425.636.5626          noblehousehotels.corn

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