Employment Agreement with Food and Beverage Director: In March 2017, the Interim
General Manager entered into an employment agreement with the Food and Beverage Director,
which provided for severance pay and other termination benefits. In the agreement, the Interim
General Manager represented that he had the authority to bind OPA into this agreement. We
were advised that the Interim General Manager did not have that authority, and entered into
the agreement without consulting OPA s Board of Directors and obtaining the approval of
OPA·s Board of Directors. The Food and Beverage Director was terminated in January 2018
and OPA paid a severance payment to him in the amount of $70,000, plus commissions of
approximately $40,000, and those amounts were included in the Yacht Club's payroll during
January 2018. In addition, the agreement requires OPA to continue paying the terminated Food
and Beverage Director's medical, dental, and vision insurance for a period of 12 months, which
is costing OPA approximately $16,800 ($1,400 per month).

An employment agreement dated March 20, 2017 between OPA and the Food and Beverage Director was executed by the Interim General Manager and the Food and Beverage Director. The employment agreement was for an employment term of three years and provided for a severance payment to the employee of up to 12 months'salary if the employer terminates the agreement for other than certain reasons set forth in the agreement. The employment agreement also required OPA to pay the employee at the time of separation for commissions on banquets and events booked less a 10% contingency, and to continue to pay the employee's medical, dental and vision insurance for 12 months. The Interim General Manager executed this agreement on OPA's behalf, stating in the agreement that he had the authority to bind OPA into this agreement. We were advised that the Interim General Manager did not have that authority, and entered into the agreement without consulting OPA's Board of Directors and obtaining the approval of OPA's Board of Directors. The Food and Beverage Director was terminated in January 2018 and OPA paid a severance payment to him in the amount of $70,000, plus commissions of approximately $40,000, and those amounts were included in the Yacht Club's payroll during January 2018. In addition, OPA is paying approximately $1,400 per month for the terminated employee's medical, dental, and vision insurance for 12 months.