Matt Test 1 March 2014 | Page 11

Proposed Investment Structure The Management Plan Venture shall consist of Equity Investors and Managing Members as outlined herein: • Development Fee – 5% of Total Project Costs paid as construction progresses from the total of Project Budget to the Managing Members. • Annual Operations Paid By Operating Income. • Operational Management Fee – 10% of Gross Income paid to Managing Members as full Mgt fee to manage and operate the facility in its entirety. Managing Members shall oversee all marketing, on-sight daily operations The Investment Principal Return •Distribution of Excess Operating Income: • EB-5 Investors—50% together with a 4% return on investment Equity Investors – 50% together with a 4% return on investment •Distribution of Capital Event: 1st to repayment of Equity Investors –50% of profits distributed to repayment 1st to repayment of EB-5 Investors – 50% of profits escrowed to repayment 2rnd to Managing Members