From: jeffrey E. <jeevacation@gmail.com>
Sent: Saturday, November 4, 2017 5:04 PM
To: David Mitchell
Subject: Fwd: David

some thoughts read through

DAVID MITCHELL

Mitchell Holdings LLC.

Begin forwarded message:

From: Stephen Hanson

Date: November 4, 2017 at <u>11:57:08 AM EDT</u>

To: David / Life Email / Mitchell <d

Life Laywer 17/ <u>Amengual"</u>

<u>"Randolph./-David</u>

H=WIE / SUE

MUCHNICK<

Cc: Mirium / howie muchnick

Subject: David

David

Now that you have received funding for 3.5m -

We need to organize how we can complete the hotel and restaurant open=items

I can come over to your office on Sunday to review the below

I have cc Randy and howie so we can all address this first point

1/First - we had always agreed once the project started to be delayed=along with AP not being funded a new $800k budget was needed for the resta=rant-this budget was based from the day of funding - and with a September =pening — which so far neither obviously has happened

for the record we never =quot; agreed " , since march we knew the restaurant would=not open in sept. but you staffed up anyway, the restaur=nt is over budget by a signifigant amount already. as a result=of your decisions. not " ours "

we both had agreed to personally fund the restaurant with $200k each =this was back before summer when we thought we would open in late August.=C24)

that was to make up a shortfall which I had to do on m= own.?

Then in September when you where relaying on Arcade to fund a bridge =oan - and we needed funds to complete time and weather sensitive construct=on items - ie the new roof, sidewalk and other items -which I funded - we =oth agreed to fund construction with $200k and where to be repaid when Arcade funded - it was never =rcades intention to fund our loans. . we discussed thisc=r>

-Arcade walked away from the loan and we where never reimbursed =. of course not

-Then when Crescendo stepped in to advance you the 3.5mm loan -you ad=ised them that $750k was going to the restaurant - this is not correct- wh= you positioned the proceeds this way is not accurate.

I have yet to u=derstand why 750 k is needed , and of course not immediately. =C240 you have not provided cash flow statement to the partnership so we c=n now ssee its benefit if any

We both need to be reimbursed from the Crescendo hotel loan -my loan =s higher then $200k at this point - but reimburse each of us so we can the= personally fund the restaurant- as we agreed upon

So the hotels additional funding of the restaurant is $350 k not $750= cannot be done our load are not senior at all

</=pan>

2/ Still to be addressed - which you have not responded to - is an ou=line as to the possible shortfall in the restaurant we could endure from J=nuary to April - complete budget sent to you weeks ago. it it incomplete

3/ I'm told you only are funding the restaurant $700 k becaus= you subtracted last weeks PR ? This is not correct in addition there are =P items that are not the restaurant responsibility -ie tasting for bankers=and loan people - the charity event on Monday to promote the hotel - we can address this at tomorrows meeting

## =/span>

we can also address how your lawyer held up t=e entire partnership for a 25k payment otherwise he would not provide sign=tures. . this is wrong in many regards. I never ag=eed to pay your lawyer , nor would I .

4/ AP - how these accounts are paid off- following the AP list you ad=ised lenders would be cured - you need to complete before they lean the ho=el- as a few have threatened.

= am aware

## =/span> (cont.)

5/ Construction- Friday's meeting with skyland seemed to put =s on track -issue now is how hard will they push to complete in next 2 wee=s - we need gary on board -I hear he is waiting for his payment before he =ill resume -but we can complete if everyone gets aggressive and bring trades back to site

We need plumbing and Electric punch list items - Chefs are working on=their list we will need gary to complete hotels items -especially items ne=ded for tco

6/ Speakeasy as skyland pointed out at yesterday's meeting an= we both understood -there is little they need to contractually complete i= the speakeasy as most items are now change orders going forward Items to complete will be reviewed on Monday with Tara - skyland and =ary - your office has still not answered where the banquette fabric is - =or starters why is this my problem Banquets- to be built -Lighting will reviewed with Tara on Monday - -front vestibule landing Bar entire unit Need to address that AC unit in the new area at bar we developed. $ 7= One AP item that needs to ASAP be paid is the soundproofing- we will =eed this also in the speakeasy bar area - 7/ When will you be in your office on Sunday - I'll come over=as you suggested on Friday As we need a great outline prior to Monday's hopefully jump s=art to complete lobby in 10 days- speakeasy in 3 weeks

hopefully we can then try to get some xmas party business - looking a= the hotels occupancy it falls off the cliff after 12/18 but maybe we can =apture some business - this brings me back to the restaurants operating bu=get - we need to address a possible winter shortfall above the $750 k opening budget.

how much will in your words capturing business actually=net.

8/. Hotel funding operating funds to be released on nov 8. We need th=se funds to stay with hotel as they have vendors putting the hotel on COD =nd as Denise has mentioned - they are almost out of hair wash and we have =un out of slippers weeks ago - now that the cold weather is here these are essentials

You can not use these funds for construction AP.

I hear we are $180 k over 45 days with AP and have $300 k closing in =n 30 days Let's also review on Sunday 9/ As you agreed on- you need to pay stacy Gilbert so she can resume =he accounting process

—What time Sunday??

Sent from my iPad

## =/span> (cont.)

=AO

please note

The information contained in this commu=ication is confidential, may be attorney-client privileged, may cons=itute inside information, and is intended only for the use of the addre=see. It is the property of JEE

Unauthorized use, disclosure or copyi=g of this communication or any part thereof is strictly prohibited a=d may be unlawful. If you have received this communication in error, pl=ase notify us immediately by return e-mail or by e-mail to jeevacation@gmail.com, a=d destroy this communication and all copies thereof,

including all a=tachments. copyright -all rights reserved

--94eb2c0dd416083465055d2b35ac-- conversation-id 24808 date-last-viewed 0 date-received 1509815038 flags 8590195713 gmail-label-ids 7 6 remote-id 765292

4