The Patterson Club Inc

“The patterson club, inc. (the "club") was incorporated as a membership organization.”

“Members are certificate holders and they annually elect the board of directors. Election is done by a secret paper ballot and an independent group of tellers tally the votes.”

“Members must approve certain assessments if greater than a 50% of annual dues income. Approval must be by 2/3 of any class of members who would be required to pay the assessment.”

“The treasurer signs the returns and they are made available to the board members if requested.”

“All directors and managers must sign the conflict of interest form annually. If a conflict is disclosed or a potential conflict exists, the cfo will report the conflict to the executive committee.”

“15a. The general manager, and the executive committee of the club (president, vp, treasurer, and secretary), seek out compensation comparability studies from the other peer clubs in the area to help determine compensation for the general manager/coo. All other employee's compensation levels are determined by the general manager with input and feedback from the associated committee personnel. We have used compensation studies provided to us by our accounting firm in order to help with the process. In terms of review of performance, the general manager's performance is reviewed and discussed in detail with the executive committee. The general manager's annual bonus amount is decided after collaboration and discussion surrounding said performance alongside the metrics for performance (specific areas, goals, targets) set up by the executive committee year over year. 15b. The general manager reviews each department managers performance at least annually in a formal sense. Some department managers request quarterly reviews as well. There is a strong and on-going effort to create specific goals and metrics for each department manager throughout the year. The creation of those goals and metrics is a collaboration between the employee him/herself, the general manager and the committee chair. For example, the house committee chairperson, chef and the general manager will look at clubs historical financials and the future revenue projections to determine a common food cost percentage to set as a target (for which part of the chef's bonus is based on". The general manager also reaches out to other general manager's to compare their targets, and as well lean heavily on cmaa, and condon o'meara, mcginty, & donnelly llp for industry standard benchmarks by region. The base salary is determined by industry standard after through review of our clubs budget, in conjunction with comparative studies from the same sources as listed above.”

“The club does not make its governing documents, conflict of interest policy, and financial statements available to the general public.”

“Interest rate swap adjustment -21,104. Net change in members' certificates & clubhouse bonds -21,500. Py adjustments -7,500.”