Goals for Atwood, Kent State University Tuscarawas & The Resort Experience Company-Atwood, LLC

• Kent State University Tuscarawas to own Atwood Resort 500 acres and amenities with partners – a long term strategic plan.

• The Resort Experience Company – Atwood, LLC to implement their Intra-preneurial, License, Leasing, Operating and Marketing protocol plan in JV (public private partnership) with KSUT.

• Assign KSUT Board members or executive committee to sit with The Resort Experience Company key executives before making final decision and to be sure you clearly understand the balanced plan & Purpose Driven opportunities as well as answer all questions for the public/private relationship with KSUT.

• Sign Non Circumvent agreements so we can share all of our materials with KSUT especially Licensing, Leasing, Operating, Marketing and Intra-prenurial business model as well as the long term development plans.

• Review funding options brought to table by The Resort Experience Company, LLC and KSUT to finalize funding and agreement for Atwood.

Business Model Impact on Atwood Region

• Gross Business from $3.4 million to $10 million by 3rd year• Jobs growing from 136 high season to 500 over 10 years • Jobs growing from 60 to 250 off season over 10 years• Tax base increase by over $100 million within 10 years• Growth will bring businesses like Rural Logic• Growth will bring services like health, restaurants, retail• Healthy Atwood improves value of homes now declining• Healthy Atwood improve present businesses – marinas, restaurants, gas stations,

yacht club memberships etc.• Healthy Atwood increases quality of life with our plan• All mineral rights wisely invested in resort and resort region could make this the # 1

growth area due to the Resort and resort area improvements – we recommend that up to 50% of mineral rights be shared with investors , KSUT and The Resort Experience Company as long as resort is secure (to be defined by KSUT and partners).

Key Tenants

• Mark Wibel – Wibel Restaurant Group – Restaurant, Sports Bar & Catering• John Meeske –Resorts and Clubs, Inc - Resort Hotel • Bob Klopfer – Super Fit Fitness Centers – Fitness Center, Wellness, Golf• Douglas Ribley – Akron General Wellness & Lifestyle Institute – Wellness • Gregg Andrews – KSUT – Education Curriculums (Possibly Entrepreneurism)• Tim Maurer – Mukha Medi-Spa and Essentials – Full service Medi-Spa, • Carole Meeske / Chuck Cherney – Resorts & Clubs Real Estate Sales• Duke Bixler Breitenbach Wine Cellars – Vineyard Wine Room & Retail• Brian Valot – Beach Club Rentals, and Marina Services • Ron Lavoie – World Class Short Game Golf Practice Facility & Golf Course • Possible Golf Villages, Cabin and Villa Developers • John Meeske, Mark Wibel & Bob Klopfer – The Resort Experience Company

Atwood, LLC - Atwood Licenses & Atwood Protocols (similar to a Franchise)

Business Model to Position Atwood to Grow!

• Grant to upgrade technology - • 20 Local equity partners – at $50,000 each , to help build• All Resort Mineral rights on 500 acres used to improve resort and resort area - • 500 development sites on 500 acres – major jobs and tax impact on area • Vineyard Villas for condo rooms – adds 100 rooms to rent (goal 300 rooms)• Beach Club for ALL guests, members, owners, at Atwood – permanent easement• Public private partnership – KSUT 50% / 20 equity investors & The Resort

Experience Company – Atwood, LLC - 50% - SARs for employees • Bank escrow account for all leases, land sales, minerals and if necessary air-rights

over hotel - Escrow owned 50% public Company 50% Private enterprise• Resort hotel and golf course including 160 acres owned by KSUT in JV with Private

Operating group.• All development property, leases, mineral rights in the escrow to pay off debt and

interest on debt. Mineral Rights in escrow to build resort opportunity.

Business Model toGrow Atwood cont.

• Leases covering interest by 2nd year• Real estate sales paying down debt service by 2nd year• Real estate paying off all debt by 5th to 7th year • Lease income 1.5 times debt service by year 3 (successful)• Lease income 2 times debt service by year 5 (very successful)• Occupancy growing from 30% to 55% by 3rd year• Occupancy growing to 65 to 70% by 6th year• Use capital of $6 million in grants, equity and loan to upgrade

facility, add on facilities and change Business Model• Be cash positive by 3rd year form leases and real estate sales

The Deal

• Kent State-Tuscarawas OWN in JV with operating company in a public private partnership

• Development Property are in escrow to sell 500 sites on the 500 acres • Mineral Rights all in escrow for improvements to resort and resort area –

great example how minerals creating year around sustainable jobs & taxes• TREC-Atwood master lease and TREC-Atwood sub-leases all go to escrow• No dividends until all debt paid off then 50% Public 50% private – Public /

Private Partnership.• Be so successful we add property to existing 500 acres and grow – goal

over 2,000 acres• Success leads to other similarly situated Ohio resort & club opportunities

The Business ModelDifferences

Past Business Model

Comparison & Changes

New Business Model

OWNERSHIP

Current Business Model• One Owner - MWCD

New Business Model• 45 growing to 545 Owners

– KSUT - 1– Tenants - 20– Investors - 20– The Resort Experience Co - 3– Property Owners Goal - 500

“Purpose Driven” Resort vs. Leisure Resort

0%

10%

20%

30%

40%

50%

60%

70%

80%

Current Marketing & Hotel Refresh

Conf Ctr - KSU -Tuscarawas

Wellness

Projected Resort Occupancy

Occupancy

Add Programs & Experiences – Increase Occupancy

TREC – ATWOOD LLC CONFIDENTIAL INFORMATION

Land Sales

Current Business Model• Zero

New Business Model• 350 Golf Villas – 3 Golf

Villages• 50 Tennis Fishing Pond

Villas• 50 Vineyard Villas • 50 to 100 Club Cabins• Total 500 Property Owners• Goal 600 to 800 Members

Land Sales

Operating Model

Current Business ModelChanges with every

Management Company and Manager

New Business Model• Atwood License & Franchise

– no Changes without Owner Approval

• Personalized ClubLevel Service – all 500 owners are members

• Atwood where every guest “wants” to be a member &/or owner

Operating Model

Marketing Model

Current Business Model• Low priority

New Business Model• High Priority with 4% of gross to

common Marketing Escrow – every tenant on board with key owner representatives

– 2 to 4 Electronic Highway signs tied to Front Desk

– Micros Clouds Reservation System– Mega Web site – links– Social Media Presence– All Past Guests & Groups – Reintroduce

to “New” Atwood– Marketing board also Atwood

Guest/Mmeber Satisfaction Board - – PR PR PR– Birds to lead you to Atwood

Leases

Current Business Model• No Leases

New Business Model• Goal 20 Leases, Licenses & Contracts

– ‘Resort Hotel Lease– Restaurant & Sports Bar + Catering Lease– Medi Spa & Spa Retail Lease– Fitness & Wellness Center Lease– WCGC Golf Practice Facility Lease– Golf Course & Pro-shop Lease– Real Estate Sales Lease– Vineyard and Wine Room Lease– Business Center Lease– KSUT Curriculum Lease– Property Management Lease– 5 to 10 Development Contracts– Wellness License– WCSG Golf Practice License

Experiences

Current Business Model• Basic Leisure Experience –

nothing bad, but nothing GREAT

New Business Model• The Experience Economy Authors

from Cleveland own Strategic Horizons Company, have visited Atwood

– # 1 Resort meeting experience in Ohio

– Best resort restaurant in Midwest– Ohio Sports Bar with most fun

experience– Finest resort medi-spa experience in

Ohio– # 1 lake resort experience in Ohio – # 1 resort wellness program in Mid-

West– 155 Experiences in Area– 52 events in area

Occupancy

Current Business Model• 29% to 34% as Leisure

Resort

New Business Model• 55% to 70% as a Purpose

Driven Experience Resort with Tenants tied to The Resort Experience License, Lease & Franchise

Meetings

Current Business Model• Few business meetings due

to Low Tech – 10% of business less than 1,000 room nights

New Business Model• High Tech Corporate

Conference Center – 50% of business – goal 8,000 to 12,000 room nights

Restaurant

Current Business Model• One major restaurant and

two golf restaurants – gross $1,200,000 with 4% margin before overhead

New Business Model• Two restaurants

– Kitchen in DR for restaurant– Wine & coffee bar room – Ohio Sports Bar – Catering kitchen– Gross $3.5 million 22%

margin after overhead– Look of Carrabba’s, Out Back

& Chichi’s plus local & wellness

Catering Kitchen

Current Business Model• One Kitchen

New Business Model• Catering Kitchen focused on all

catering for main dining room, weddings, groups and parties within 50 miles of Atwood.

• Demonstration Kitchen in Dining Room to consistently meet and beat guest expectations with two menus.

• Wibel trained – Carrabba’s, Out Back, Cheeseburger Paradise and Chichi’s.

Menus

Current Business Model• Three menus in three

locations

New Business Model• Two Menus in one location

– Separate Catering focus– Upper middle dining menu– Casual Ohio Sports Bar menu

Spa

Current Business Model• No Spa

New Business Model• Professional

– Medi-Spa, – Spa Retail, – Wedding services,– Beauty Essentials– In existing space

Beach Club

Current Business Model• Nice but nothing Special

New Business Model• Attraction for Atwood possibly #1

– JV with Atwood Marina -Brian – Canoes– Fishing Boats– Kayaks – Ice Fishing Tents– Pontoon Rentals– House Boat overnight rentals – Tubes– Beach of Sand– Swimming Platform– Docks– Camp Fires – Club House or Tent– 10% to escrow

Beach Club

Club House

Current Business Model• Two Golf, no tennis and no

Beach Club House

New Business Model• Resort Hotel Sports Bar becomes -

Golf & Fitness Club House plus

– Beach Club House– Tennis & Fishing Club– Fitness Club – with WCSG

&Wellness– Golf Clubs– Marina Club (not owned)– Yacht Club (separate fee)

Fitness

Current Business Model• Modest hotel type fitness

Center

New Business Model• Professional Fitness Club by

Super Fit and Bob Klopfer family– Seasoned veteran - owns 32 centers– WCSG Golf practice License– Akron General Wellness license– Tied to Spa Wing with Spa operator– Fitness Club with different levels of

membership

Wellness

Current Business Model• No wellness program

New Business Model• Akron General Wellness &

LifeStyle Institute License– Mid week program year

around– Tied to Company Meetings– Tied to Fitness Club– Tied to Spa Wing with Hot

Tubs

Oil and Gas

Current Business Model• No Oil

New Business Model• Mineral Rights all used for

Atwood and surrounding activities– Separate escrow for Resort

and resort area– Upfront capital used for

upgrades– Royalty for upgrades to

Resort and Area such as bike trail, Flowers, Trails, History

Examples below of a few past

Resort Business Model Changes

• Shanty Creek – Purchased broke, added Hilton, sold to ClubCorp• Schuss Mountain – Purchased with stock, merged with SC and sold to CC• Quail Hollow – purchased on trigger deal by CC, added Country Club sold• Pinehurst – purchased for $15 mill out of C-7 , value now $500 million• The Villages – from 500 acres to 25,000 acres, the most successful• Barton Creek – Bankrupt 1 course 150 rooms to 4 courses & 350 rooms• Inverrary Resort & Country Club – added broke hotel to Country Club• Homestead – Added capital in first place, development, Club & upgrades• Owners Club = Country Club plus Resort plus Experiences = Resort C Club• The above are simply examples of the hundreds of resorts we have studied

and some of the resorts and resort country clubs we have owned and/or turned around with individual models all different. The key is the license, lease, operating & marketing protocols tied to TREC franchise agreement.

Shanty Creek Business Model

• Two Real Estate Developers• Retail at resort• Town of 200 owners• 3,100 Property Owners (room for 4,000)• 6 golf courses, • 3hotels/rental management, overall rooms with condos 500+• 3 ski areas Owner Apex Oil Company ($3 billion company)Started at 1,300 acres now 4,000 acres

Quail Hollow Business Model

• Country Club – Club Corp.• 600 Property Owners• Separate Golf Course for Club • Hotel/Resort with Food & Beverage, • Meeting site, • Two Golf courses• 2 Pools • 600 plus acres• Ownership ClubCorp owns Club and Resort owned by private

party

Pinehurst Business Model

• Pinehurst Town – 100 + retail owners• 7,200 Property Owners – 15,000 Club Members• 800 Rental Units est.• 3 Hotels, about 650 rooms total• 9 Golf Courses, • Mega Spa, • 5 Restaurants and Clubs with 15,000 members,• 18 clay tennis Cts, Lawn bowling, Professional Croquet Cts, • Gross business has reached over $100 million• Major site for Tournaments including US Open• Retirement Second Home and Primary Residents• Billionaire Owner, Bob Dedman, Jr. –• Grew from 3,700 to 7,000 acres

The VillagesBusiness Model

• 50,000 golf carts• 138 buffalos• 70,000 residents (all over 55)• Four Charter Schools – and no children live in the Villages – school for employees• 20+ Golf courses over 400 holes of golf (several free + name brand courses)• Every possible experience & event - 151 soft ball teams, pool club, wellness,

Tennis, Polo, Chess, Bridge, largest nightly cocktail parties in Florida etc• 10 home sales per day• Three town centers – gross over $10 million in cocktail sales per year• Most transportation by golf cart – golf cart paths to all destinations• Several shopping centers, churches, restaurants, services, health centers • No financial discrimination – all residents members of all 20 clubs• Grew from bankrupt 500 acre trailer park to 25,000 acre mega retirement resort• H. Gary Morse family owned – billion dollar level from zero