BRICA Update Lou Herman President

BR Conference Center Acquisition After Condos Sold, Developer (BRD) Retained Ownership Negotiations Between BR HOA & BRD Started in 2009 Agreed Upon Price: $24,000,000 BRD Carryback Second Note: $6,500,000 at 7% for 15 Years Condition: Eventually Center Must Be Owned by BR HOA

BR Conference Center Acquisition Condo Declarations Would Not Allow a Special Assessment for Purchase Voluntary Investment by BR Condo Owners Formed LLC – Named BRICA Beaver Run Interim Center Acquisition, LLC Eventually Will Be Owned by BR HOA Has Class A, B, & C Members

Class B Members BR Homeowners Voluntarily Invested Approximately 60% of Owners Participated Class B Invested $3,983,808 Should Return 4.85 Times Original Investment Most of Return Paid After 15 Years Can Retain or Sell Class B Shares

Class A Members BR Homeowners Who Purchased Class B Shares Could Also Purchase Class A Shares Class A Invested $1,462,149 Return of Principal & Interest Similar to Bank Loans 7.0% Interest, 15-Year Term Can Retain or Sell Class A Shares

Class C Member (BR HOA) After the Class A & B Investors Have Received Their Assigned Returns, They Will Have No Further Rights or Interest in BRICA The Class C Member (the Beaver Run HOA) Will Become the Sole Member of BRICA

Acquired Additional Financing Vectra Bank in Denver Provided First Note $12,375,000 at 5.79% 15-Year Term, All Due & Payable in 10 Years

Purchased Conference Center & Commercial Building – Sept 1, 2010 Beaver Run Homeowners Funding ($) Class A BRICA Members 1,462,149 Class B BRICA Members 3,983,808 Owner (BRD) 2nd Note 6,500,000 Vectra Bank 1st Note 12,375,000 Total Funding 24,320,957 Mortgage Payments ($/yr) 1st Note Vectra Bank 1,241,756 2nd Note Seller Carryback 701,086 Total Mortgage Early Payments 1,942,842

Greg Paschke – Treasurer A Typical BRICA Year Where Does the Revenue Come From? (NOI) What is Left After the Yearly Operating Expenses are Paid?

Greg Paschke, CPA Treasurer BRICA Financials Greg Paschke, CPA Treasurer

Casino Night – Grand Prize

BRICA Financing History 2010 – $12.4M Vectra – 5.79%, $6.5M BRD – 7.0%, Original Loans 2012 – $15.0M Vectra – 5.15%, $1.4M BRD – 7.0%, Paid Down Principal by Additional $1M, Added Interest Rate Swap Agreement 2014 – $13.9M Vectra – 5.15%, $1.3M Vectra – 5.0%, Paid Off BRD Loan Completely 2016 – $11.75M Vectra – 3.8% Original Projected Interest Expense – $11.7M Projected Refinanced Interest Expense – $7.0M

2016 Accomplishments Refinanced Bank Debt to a 3.8% Fixed Rate Removed Restricted Cash Covenant ($1.6M) Lowered Debt Service Coverage Ratio Allowing for Larger Investor Distributions Removed Interest Rate Swap Instrument Reduced Principal by an Additional $1.6M

2016 BRICA Financials Income Statement Cash Flow Statement Balance Sheet

Related Party Lease Income 2016 2015 Var. $ Var. % Conference Center (4% Rental Revenue) $ 708,852 $ 677,992 $ 30,860 4.6% Rental Supplement 700,000 600,000 100,000 16.7% Food & Beverage/Deli 745,740 704,056 41,684 5.9% Coppertop (Recovery) 200,000 216,000 (16,000) (7.4%) Front Desk, Lobby, 3rd & 4th Floor Offices 165,172 162,468 3,562 2.2% Total Related Rents $ 2,519,764 $ 2,360,516 $ 159,248 6.7%

Unrelated Party & Total Lease Income 2016 2015 Var. $ Var. % Fixed Rents Ticket Windows, Ski School, Childcare, Instructors’ Room, Real Estate Office $ 433,412 $ 432,546 $ 866 0.2% Percentage Rents Ski & Snowboard Shops, Lobby Store, Winter Parking 650,295 680,536 (30,241) (4.4%) Total Unrelated Rents 1,083,707 1,113,082 (29,375) (2.6%) Total Lease Income $ 3,603,471 $ 3,473,598 $ 129,819 3.7%

Other Income & Total Revenues 2016 2015 Var. $ Var. % Food & Beverage Resort Fee $ 0 $ 264,808 $ (264,808) (100.0%) Management Fee 30,000 0.0% Interest/Other Income 2,464 4,158 (1,694) (40.7%) Total Other Income 32,464 298,966 (266,502) (89.1%) Total Revenues $ 3,635,935 $ 3,772,564 $ (136,629) (3.6%)

Operating Expenses & Profit 2016 2015 Var. $ Var. % Maintenance $ 336,446 $ 321,588 $ 14,858 4.6% Real Estate Taxes 167,281 162,539 4,742 2.9% Utilities & Energy 154,610 166,466 (11,856) (7.1%) Accounting & Legal 111,523 102,828 8,695 8.5% Insurance 66,669 57,110 9,559 16.7% Management Fees 30,000 0% Other 23,276 26,209 (2,933) (11.2%) Total Operating Expenses 889,805 866,740 23,065 2.7% Operating Profit $ 2,746,130 $ 2,905,824 $ (159,694) (5.5%)

Other Expenses & Net Income 2016 2015 Var. $ Var. % Interest Expense $ 451,204 $ 711,063 $ (259,859) (3.7%) Swap Termination Fee 247,950 100.0 Depreciation 428,480 793,412 (364,932) (46.0%) Amortization 112,836 137,284 (24,448) (17.8%) Total Other Expenses 1,240,470 1,641,759 (429,577) (20.7%) Net Taxable Income $ 1,505,660 $ 1,264,065 $ 241,595 19.1%

Operating Activities Net Cash Flow Cash Flow Statement 2016 2015 Var. $ Operating Profit (Gross Cash Flow) $ 2,746,130 $ 2,905,824 $ (159,694) Interest Expense (451,204) (711,063) 259,859 Swap Termination Fees (247,950) Changes in Assets & Liabilities Accounts Receivable (34,385) (26,688) (7,697) Prepaid Expenses & Other 5,498 (4,448) 9,946 Payables & Accruals 32,377 4,407 27,970 Due to/from HOA (19,234) 5,383 (24,617) Due to/from HOA (Rental) 114,145 162,660 (48,515) Operating Activities Net Cash Flow $ 2,145,377 $ 2,336,075 $ (190,698)

Net Operating Income (NOI)

Investing Activities Net Cash Flow Financing Activities Net Cash Flow Cash Flow Statement 2016 2015 Var. $ Transfers (To)/From Reserve Fund $ 1,617,382 $ (481,998) $ 2,099,380 Investing Activities Net Cash Flow 1,617,382 (481,998) 2,099,380 Long-Term Debt Payments (2,483,166) (1,037,400) (1,445,766) Note Payable – Rental Payments (100,000) Loan Modification Payments (2,816) Class A Member Distributions (160,693) Class B Member Distributions (179,272) Financing Activities Net Cash Flow (2,925,947) (1,377,365) (1,548,582) Net Increase in Cash 836,812 476,712 $ 360,100 Cash – Beginning of Year 597,939 121,227 Cash – End of Year $ 1,434,751 $ 597,939

Balance Sheet Current Assets 2016 2015 Var. $ Cash & Cash Equivalents $ 1,434,751 $ 597,939 $ 836,812 Cash – Vectra Reserve 1,617,382 (1,617,382) Accounts Receivable 216,929 182,544 34,385 Prepaid Expenses & Other 38,324 43,822 (5,498) Due from HOA - Rental 183,284 297,429 (114,145) Due from HOA (13,017) (32,251) 19,234 Total Current Assets $ 1,860,271 $ 2,706,865 $ (846,594)

Balance Sheet Non-Current & Total Assets 2016 2015 Var. $ Property & Equipment, Net $ 17,274,951 $ 17,703,431 $ (428,480) Start-up Costs, Net 456,850 510,870 (54,020) Goodwill, Net 480,667 536,667 (56,000) Syndication Costs 35,000 Total Non-Current Assets 18,247,468 18,785,968 (538,500) Total Assets $ 20,107,739 $ 21,492,833 $ (1,385,094)

Balance Sheet Current Liabilities 2016 2015 Var. $ Accounts Payable & Accrued Liabilities $ 58,324 $ 13,330 $ 44,994 Property Taxes Payable 380,156 369,475 10,681 Accrued Interest 34,976 58,274 (23,298) Current Portion of Long-term Debt – Vectra Bank 1,175,000 1,089,200 85,800 Total Current Liabilities $ 1,648,456 $ 1,530,279 $ 118,177

Balance Sheet Non-Current & Total Liabilities 2016 2015 Var. $ Long-term Debt – Vectra Bank, Less Current Portion $ 9,514,034 $ 12,083,000 $ (2,568,966) Note Payable – Rental 272,202 372,202 (100,000) Due to Class A Members 160,693 Total Non-Current Liabilities 9,946,929 12,615,895 (2,668,966) Total Liabilities $ 11,595,385 $ 14,146,174 $ (2,550,789)

Balance Sheet Members’ Equity 2016 2015 Var. $ Class A Member Interests $ 1,015,701 $ 1,099,434 $ (83,733) Class B Member Interests 3,983,808 Class C Member Interests 3,512,845 2,263,417 1,249,428 Total Members’ Equity 8,512,354 7,346,659 1,165,695 Total Liabilities & Members’ Equity $ 20,107,739 $ 21,492,833 $ (1,385,094)

The Future of BRICA

Original PRINCIPAL Balance

Original PRINCIPAL Balance Actual PRINCIPAL Balance

Original PRINCIPAL Balance Actual PRINCIPAL Balance Yearly PRINCIPAL Payment

Net Operating Income (NOI)