EF + BAMCO 2.22 by Compass Group USA

FINANCIAL PROPOSAL 2.11.2022

EXECUTIVE SUMMARY Food is about more than simple sustenance. The right dining program also builds community — enhancing the culture at Education First Academy Pasadena by offering your students and staff a way to connect and collaborate by breaking bread together. That’s why it’s essential for EF Academy to find a food service partner that supports your mission and values, and one that can create a completely customized program that reflects your community. Mission Alignment and Partnership Bon Appétit is thrilled to be submitting a proposal to the EF Academy because our organizations share strong values of great food, guest experience and flexibility. At Bon Appétit, we truly believe we can deliver fantastic food and wonderful service while also helping to make our food system better. “Food service for a sustainable future” is the heart of our business philosophy and has made Bon Appétit the recognized industry leader in sustainable procurement, animal welfare, food waste management, and farmworkers’ rights. Here’s how we define this philosophy: “Food service for a sustainable future means flavorful food that’s healthy and economically viable for all, produced through practices that respect farmers, workers, and animals; nourish the community; and replenish our shared natural resources for future generations.” As Education First’s partner, we will work to represent your values in the café, store and catering operations every day. We also commit to working collaboratively to continue pushing the envelope to make our operations, and the food system as a whole, better for people and the planet. Depth and Breadth of Experience Bon Appétit is honored to serve some of the world’s most influential companies, institutions of higher education, and cultural organizations, including Education First in San Diego. We serve University of Pennsylvania, Massachusetts Institute of Technology, Vassar College, and many others nationwide. We also serve the headquarters for Google, LinkedIn, and Twitter, and manage the public-facing cafés, restaurants, and catering at The Metropolitan Museum of Art in New York, The Getty Center and Huntington Library and Gardens in Pasadena, among others. We manage by region, not business segment, so there are no silos. Feeding Silicon Valley innovators, Gen Z student activists, and fine-dining fanatics means we see the trends and the technology first and can bring them to your table. Increasing Excitement and Participation Our plans to create an exciting atmosphere in the café start with our culinary programs. For your café, we propose to highlight the following station concepts: • Grill– Made to order burgers, fish, and chicken • Roam – Authentic dishes from around the globe • Toast – Artisan deli sandwiches made to order • Leaves – Fresh salad bar with seasonal local offerings • Scratch – Classic American and comfort foods • Peels – Pizzas and flat breads with house made dough • Soup – Always from scratch down to the stocks • Grab N’ Go – A variety of fresh options ready for pick-up In The Store, we plan to work with you and the students to offer the most essential convenience items, some healthy balanced with some indulgent snacks, a full craft coffee menu and a good variety of fresh house-made grab n go available at the times students need them most.

Each meal period, students will be allowed 1 entrée only, there will be no second meal given without an additional swipe. Students can have all-they-care-to-eat salad bar and beverages

Café Hours of Operation | Time | Stations open per meal period

• Breakfast | Mon-Fri | 7:30 am - 9:00 am | entrée station/speed line, breakfast grill, salad and beverage station • Brunch | Sat-Sun | 10:30 am - 1:00 pm | Breakfast station, Lunch station, grill, salad bar, and beverage station • Lunch | Mon-Fri | 11:45 am - 1:45pm | All Stations Open: entrée station, grill, ovens, deli, salad bar, and beverage station • Dinner | Mon-Sun | 5:00 pm - 7:00 pm | All Stations Open: 2 entrée stations, ovens, grill, salad bar, and beverage station For all meals | stations can be added to meet the volume and variety needs of the students. The Store: Coffee, Grab n’ go, Convenience items Hours of operation • Mon – Fri | 8:00 am – 7:30 pm • Weekends | 11:00 am - 5:30 pm These hours are subject to change based on student needs.

A winning attitude can only be exemplified through great people. The Education First Academy people plan will have: • General Manager to execute the plan • Dedicated Chef, who is customer-minded, and will promote regional flavors and student favorites • Culinary, health and wellness, sustainability education • Innovative and forward-thinking philosophy aimed to achieve a 5.0 guest satisfaction score • Culinary team that is experienced, knowledgeable, and highly talented • Assistant GM once the student volume supports an additional manager, anticipated in year 3 We recognize that Education First Academy and Language Schools desires a creative, exciting program that increases participation while meeting key sustainability and wellness goals. Bon Appétit’s completely customized and cooked-from-scratch culinary approach paired with industry-leading sourcing standards will help deliver this experience to all of our EF residents and guests. In addition, we understand that greater variety is paramount. The diverse offerings outlined in this proposal along with our experience creating customized restaurant experiences as top-ranked companies and universities across the nation will help EF achieve this goal in the café to achieve high marks on student surveys. In partnership with EF Academy, we are proposing a diverse retail plan that will create excitement for your students, faculty, and staff. Concepts such as locally roasted or nationally branded coffee, convenience items and house made grab n go will provide variety and unique character to The Store between meals and afterhours program while meeting standards for sustainability, nutrition and convenience.

Radical Transparency Earns Trust The only way to create a sustainable partnership is to build it on a foundation of candid communication and radical transparency. Over the past 33 years, we have earned an impeccable reputation for financial performance, financial visibility, and contract flexibility. The Education First Pasadena leadership team will have insight into all of our financial and operational systems supported by robust reporting from our proprietary enterprise-level Owner’s Management Suite and Food Standards Dashboard. The Long View Bon Appétit has enjoyed an unparalleled 99% client retention rate throughout our 34-year history. We pride ourselves in our ability to evolve with our partners and take risks that result in big rewards. If chosen as the Education First Academy in Pasadena’s food service partner, we’ll be in it for the long haul. A Dining Experience That Reflects Your Community No two Bon Appétit dining programs are the same, not even accounts under the same corporate structure as EF. Instead, we operate our cafés as if they’re neighborhood restaurants, developing menus to serve each unique audience’s tastes. Education First Academy’s dining program should feel like a vibrant global marketplace that inspires your unique students to explore new offerings every single day. In addition, EF Academy and Language school students should see their tastes and cultural backgrounds reflected authentically in the menus, events, and cultural celebrations in the café and in special events. Creating a Living Food Story Through the stories behind the food, we’ll tell in Education First’s Café every day to the interactive events we’ll develop throughout the year, our marketing efforts will create a living food story that engages and evolves with your community. Robust feedback channels and collaborations with EF Academy’s student-run clubs and organizations or employee resource groups will inform our menus and events, ensuring the program is an authentic expression of the people that are the Education First Academy and Language School. Industry-Leading Sourcing Standards Long before it was fashionable in the food service industry, we were laser-focused on local sourcing and environmentally and socially responsible practices. We have companywide initiatives to purchase local food, prioritize plant-based proteins, and move away from proteins that have heavy carbon and water use impacts, such as beef and pork. We also empower our chefs to develop their own purchasing relationships through our Farm to Fork program because we value regional flavors and foods, and we know that our purchasing decisions can have a significant impact on our communities beyond the walls of our cafés. Sustainability and Wellness Are Intertwined We use this philosophy as the basis for our companywide food standards, which govern how our chefs source ingredients, create menus, and how we drive our wellness programming. More and more, people want to know where their food comes from and how it was prepared. We cook with seasonal whole foods and train our chefs in healthy cooking techniques to maximize the nutritional quality of the food we make — all while maintaining its deliciousness. Our extensive Well-Being Commitments are measured through an audit system, so we can offer measurable proof of wellness on the plate.

Event and Catering Experts Bon Appétit began as a catering company, and we have more than 34 years of experience customizing events for our clients. Our experience includes large-scale catered events at some of the country’s most renowned cultural institutions, including The Met in New York and The Getty Center in Los Angeles, so our teams are well versed in interacting with VIP guests, executives, and dignitaries. Our focus is to create an end-to-end hospitality experience for each catering client and guest. For Education First Pasadena, we’ll create regularly changing menus inspired by the seasons at a variety of price points and will work to foster positive relationships with in-house clients. Safety in a New World COVID-19 has radically shifted the food service industry. We reinvented our café and service experiences to safely feed our guests while offering the same creative, responsibly sourced, restaurant-quality food they have come to know and love. An essential part of doing this is having a foundation of specific safety protocols that address coronavirus concerns. Bon Appétit and our parent company, Compass Group, have created clear safety guidance that works for a variety of café experiences and is flexible enough to adapt to evolving recommendations from the CDC and local regulatory agencies. Our People Bon Appétit’s philosophy of food service for a sustainable future and our reputation as a leader in the industry allow us to attract and retain the most highly qualified and enthusiastic professionals in our field. Inclusive Practices Disrupting inequity and exclusion is ongoing work that must be supported with both formal policies and a true commitment by all individuals to dismantle harmful systems. We work to ensure people of diverse backgrounds feel welcome, to encourage and amplify diverse opinions and approaches, and to offer equal access to opportunities for all. As Education First’s food service partner, we will also see it as an essential function to support and emulate your best inclusive practices. The Right Technology for the Future To ensure that Education First’s infrastructure can flex for the future, we are proposing to meet and understand the future objectives before recommending a specific POS solution. Our proprietary Food Standards Dashboard will provide the data EF needs to measure wellness and sustainability metrics such as number of vegan and vegetarian meals served and World Resources Institute-compatible data about climate impacts. Café BonApp mobile app will make online and smartphone ordering a breeze if EF chooses to include mobile order for coffee at The Store. Our Partnership Bon Appétit is honored to be selected to participate in Education First Academy’s quest for a new food service partner. We have a good knowledge of what is expected by Education First in terms of service, programming, financial performance and partnership. Bon Appetit has a stronger presence in the LA market than our competitors in this bidding process, we think that can be a significant advantage to Education First. In today’s marketplace, having local support is essential. Our many units in the immediate surrounding area can be used to support operational needs when staffing is short or there are special events. Our systems offer financial and operational transparency you seek and our pioneering sustainability and social justice initiatives have a scale that can make regional or even global impact. If chosen as your partner, we commit that we will listen, innovate, and iterate on the program together until we’ve created something that inspires your Education First Academy and Language School students and staff and supports the community for the long term.

OUR FINANCIAL PROPOSAL Financial Model & Contract Term

We propose a profit & loss agreement for a term of five years. The agreement is at-will and may be terminated for convenience upon 90day notice by either party. Date of initial service would be subject to mutual agreement.

Radical Transparency

Education First will have insight into all of our financial and operational systems supported by robust reporting from our proprietary enterprise-level Owner’s Management Suite and Food Standards Dashboard.

$300,000 Loss Absorption and $100,000 Pre-opening Investment

Bon Appétit will absorb the operational losses for the first year up to $300,000 and provide $100,000 for pre-opening expenses at no cost to Education First Academy and Language School. This money would be subject to standard buy back language if the contract was terminated early.

Profit Split and Profit Cap

Bon Appetit proposes that Bon Appetit receive the first 3% of revenues as it’s profit. The next 2% of revenues, from 3 to 5% profit would be split 50/50 between BA and EF. All profit over 5% would belong to Education First.

Commission

Bon Appétit will provide Education First Academy a 7% commission on all revenues in The Store. Bon Appétit also will partner with Education First Pasadena in year 1 to charge board rates at the 600 count as long as the minimum board count for the Academy remains at or above 150 during the 227 Academy days and the Language school remains at or above 360 for Language school days.

Added Savings for Year 1 and Education First San Diego

In partnership with San Diego, if we manage both Pasadena and San Diego, to improve the SD financial agreement, we agree to provide the following: • First 3% of revenues as profit to Bon Appetit (same as current). •

50/50 split of next 2% profit from 3-5% (1% reduction).

•

All profit over 5% goes to Education First (1% more to EF).

•

7% commission on all Coffee Bar revenue (same as current).

PRO FORMA Pro Forma SALES/NET Board Sales Acadamy Voluntary sales Board Sales Language School Catering Sales TOTAL - REVENUES COST OF SALES Cost of Goods Cost of Goods - Catering Paper Supplies SUBTOTAL - COST OF SALES GROSS PROFIT LABOR Management Hourly Staff Employee Tax Benefits/Insurance Holiday Accrual SUBTOTAL - LABOR DIRECT EXPENSES Admin & Support Rent Office Supplies Kitchen Supplies Laundry & Linen China/Glass/Silver Uniforms Janitorial Supplies Printing Repair & Maintenance Catering Expense Contract Labor Equipment Rental Pest Control POS System Bank Service Charges Utilities Telephone Postage/Exp Delivery Advertising Promotion Comps Safety Shoes Computer Exp Employee Relocation Liability Insurance Taxes/Licenses Coffee Bar Commission 7% Credit Card Expense SUBTOTAL - DIRECT EXPENSES

Year 1

Year 2

Year 3

Year 4

Year 5

Total

457,973 20.8% 911,144 29.6% 1,574,677 39.7% 3,069,267 66.8% 3,161,883 65.2% 9,174,943 49.1% 568,031 25.8% 698,063 22.7% 876,000 22.1% 679,125 14.8% 816,000 16.8% 3,637,219 19.5% 1,134,000 51.5% 1,421,748 46.1% 1,463,796 36.9% 799,459 17.4% 823,854 17.0% 5,642,857 30.2% 40,000 1.8% 50,000 1.6% 50,000 1.3% 50,000 1.1% 50,000 1.0% 240,000 1.3% --------------- --------- --------------- --------- --------------- --------- --------------- --------- --------------- --------- --------------- --------2,200,004 100.0% 3,080,954 100.0% 3,964,473 100.0% 4,597,851 100.0% 4,851,737 100.0% 18,695,019 100.0% 836,079

38.0%

1,181,357

38.3%

1,528,559

38.6%

1,904,385

41.4%

1,998,499

41.2%

7,448,879

39.8%

16,000 128,510

0.7% 5.8%

20,000 180,979

0.6% 5.9%

20,000 233,215

0.5% 5.9%

20,000 229,893

0.4% 5.0%

20,000 242,587

0.4% 5.0%

96,000 1,015,183

0.5% 5.4%

--------------- --------- --------------- --------- --------------- --------- --------------- --------- --------------- --------- --------------- --------980,589 44.6% 1,382,336 44.9% 1,781,774 44.9% 2,154,277 46.9% 2,261,086 46.6% 8,560,062 45.8% --------------- --------- --------------- --------- --------------- --------- --------------- --------- --------------- --------- --------------- --------1,219,415 55.4% 1,698,619 55.1% 2,182,699 55.1% 2,443,574 53.1% 2,590,651 53.4% 10,134,957 54.2% 190,000 8.6% 195,700 6.4% 291,571 7.4% 300,618 6.5% 309,636 6.4% 1,287,525 6.9% 741,584 33.7% 821,966 26.7% 902,273 22.8% 971,681 21.1% 1,049,918 21.6% 4,487,422 24.0% 366,637 16.7% 400,867 13.0% 468,429 11.8% 499,512 10.9% 534,113 11.0% 2,269,558 12.1% 59,327 2.7% 65,757 2.1% 72,182 1.8% 77,735 1.7% 83,993 1.7% 358,994 1.9% --------------- --------- --------------- --------- --------------- --------- --------------- --------- --------------- --------- --------------- --------1,357,548 61.7% 1,484,290 48.2% 1,734,455 43.7% 1,849,546 40.2% 1,977,660 40.8% 8,403,498 45.0% 1,040 312 14,231 572 780 2,111 20,255 780 3,900 13,000 2,080 4,602 260 -

0.0% 0.0% 0.0% 0.0% 0.6% 0.0% 0.0% 0.1% 0.9% 0.0% 0.0% 0.0% 0.2% 0.0% 0.6% 0.1% 0.0% 0.2% 0.0% 0.0%

1,300 3,640 21,933 9,360 6,500 5,906 28,870 6,500 4,680 13,000 2,080 4,602 536 -

0.0% 0.0% 0.0% 0.1% 0.7% 0.3% 0.2% 0.2% 0.9% 0.2% 0.0% 0.0% 0.2% 0.0% 0.4% 0.1% 0.0% 0.1% 0.0% 0.0%

1,300 3,640 28,458 10,660 6,500 7,518 37,318 6,500 4,680 13,000 2,080 4,862 536 -

0.0% 0.0% 0.0% 0.1% 0.7% 0.3% 0.2% 0.2% 0.9% 0.2% 0.0% 0.0% 0.1% 0.0% 0.3% 0.1% 0.0% 0.1% 0.0% 0.0%

1,300 3,640 33,525 12,220 6,500 8,785 43,652 6,500 4,680 13,000 2,080 4,862 536 -

0.0% 0.0% 0.0% 0.1% 0.7% 0.3% 0.1% 0.2% 0.9% 0.1% 0.0% 0.0% 0.1% 0.0% 0.3% 0.0% 0.0% 0.1% 0.0% 0.0%

1,560 4,940 34,598 14,040 6,500 9,019 45,506 12,220 5,980 13,000 2,080 5,200 536 -

0.0% 0.0% 0.0% 0.1% 0.7% 0.3% 0.1% 0.2% 0.9% 0.3% 0.0% 0.0% 0.1% 0.0% 0.3% 0.0% 0.0% 0.1% 0.0% 0.0%

0.0% 0.0%

6,500 16,172 132,746 46,852 26,780 33,339 175,601 32,500 23,920 65,000 10,400 24,128 2,402 -

0.0% 0.0% 0.0% 0.1% 0.7% 0.3% 0.1% 0.2% 0.9% 0.2% 0.0% 0.0% 0.1% 0.0% 0.3% 0.1% 0.0% 0.1% 0.0% 0.0% 0.0% 0.0%

1,560 0.1% 1,560 0.1% 1,560 0.0% 1,560 0.0% 1,820 0.0% 8,060 0.0% 3,120 0.1% 3,120 0.1% 3,120 0.1% 3,120 0.1% 3,380 0.1% 15,860 0.1% 0.0% 0.0% 0.0% 0.0% 0.0% 0.0% 26,400 1.2% 36,971 1.2% 47,574 1.2% 55,174 1.2% 58,221 1.2% 224,340 1.2% 1,820 0.1% 1,820 0.1% 1,820 0.0% 1,820 0.0% 2,080 0.0% 9,360 0.1% 24,432 1.1% 27,147 0.9% 32,576 0.8% 32,576 0.7% 42,158 0.9% 158,889 0.8% 30,377 1.4% 40,117 1.3% 50,814 1.3% 57,148 1.2% 62,971 1.3% 241,426 1.3% --------------- --------- --------------- --------- --------------- --------- --------------- --------- --------------- --------- --------------- --------151,632 6.9% 219,643 7.1% 264,515 6.7% 292,677 6.4% 325,809 6.7% 1,254,276 6.7% --------------- --------- --------------- --------- --------------- --------- --------------- --------- --------------- --------- --------------- ---------

(289,765) -13.2% (5,314) -0.2% 183,729 4.6% 301,350 6.6% 287,182 5.9% 477,182 2.6% --------------- --------- --------------- --------- --------------- --------- --------------- --------- --------------- --------- --------------- --------INVESTMENT AMORTIZATION 20,000 0.9% 20,000 0.6% 20,000 0.5% 20,000 0.4% 20,000 0.4% 100,000 0.5% NET PROFIT (Less Investment) (309,765) -14.1% (25,314) -0.8% 163,729 4.1% 281,350 6.1% 267,182 5.5% 377,182 2.0% BA first 3% (309,765) 0.03 (25,314) -0.8% 118,934 3.0% 137,936 3.0% 145,552 3.0% 67,343 0.4% Remaining Profit 0.0% 0.0% 44,795 1.1% 143,415 3.1% 121,630 2.5% 309,839 1.7% 50/50 split of 3-5% 0.0% 0.0% 22,397 0.6% 45,979 1.0% 48,517 1.0% 116,893 0.6% NET BA PROFIT (4% max) (309,765) -14.1% (25,314) -0.8% 141,331 3.6% 183,914 4.0% 194,069 4.0% 184,236 1.0% 50% of 3-5% and all profit above 5% of rev 0.0% 0.0% 22,397 0.6% 97,436 2.1% 73,113 1.5% 192,946 1.0% NET EF PROFIT including Commission 24,432 1.1% 27,147 0.9% 54,974 1.4% 130,012 2.8% 115,270 2.4% 351,835 1.9% GROSS PROFIT

OPERATING STATEMENT YEAR 1 SALES/NET Board Sales Acadamy Voluntary sales Board Sales Language School Catering Sales TOTAL - REVENUES COST OF SALES Cost of Goods Cost of Goods - Catering Paper Supplies SUBTOTAL - COST OF SALES GROSS PROFIT LABOR Management Hourly Staff Employee Tax Benefits/Insurance Holiday Accrual SUBTOTAL - LABOR DIRECT EXPENSES Admin & Support Rent Office Supplies Kitchen Supplies Laundry & Linen China/Glass/Silver Uniforms Printing Janitorial Supplies Repair & Maintenance Catering Expense Contract Labor Equipment Rental Pest Control POS System Bank Service Charges Utilities Telephone Postage/Exp Delivery Advertising Promotion Comps Safety Shoes Computer Exp Employee Relocation Liability Insurance Taxes/Licenses Coffee Bar Commission 7% Credit Card Expense SUBTOTAL - DIRECT EXPENSES

Café The Store --------------------------------------------------

Consolidated -------------------------

457,973 24.7% 0.0% 457,973 219,000 11.8% 349,031 100.0% 568,031 1,134,000 61.3% 0.0% 1,134,000 40,000 2.2% 0.0% 40,000 --------------- --------- -------------- --------- --------------1,850,973 100.0% 349,031 100.0% 2,200,004 724,389

39.1%

111,690

32.0%

836,079

38.0%

16,000 111,058

0.9% 6.0%

17,452

0.0% 5.0%

16,000 128,510

0.7% 5.8%

--------------- --------- -------------- --------- --------------851,447 46.0% 129,142 37.0% 980,589 --------------- --------- -------------- --------- --------------999,525 54.0% 219,890 63.0% 1,219,415

--------44.6% --------55.4%

190,000 10.3% 0.0% 190,000 616,728 33.3% 124,856 35.8% 741,584 316,745 17.1% 49,892 14.3% 366,637 49,338 2.7% 9,988 2.9% 59,327 --------------- --------- -------------- --------- --------------1,172,811 63.4% 184,737 52.9% 1,357,548

8.6% 33.7% 16.7% 2.7% --------61.7%

780 260 13,882 520 520 1,851 18,510 520 3,640 10,400 2,080 4,160 260 -

0.0% 0.0% 0.0% 0.0% 0.8% 0.0% 0.0% 0.1% 1.0% 0.0% 0.0% 0.0% 0.2% 0.0% 0.6% 0.1% 0.0% 0.2% 0.0% 0.0%

260 52 349 52 260 260 1,745 260 260 2,600 442 -

0.0% 0.0% 0.1% 0.0% 0.1% 0.0% 0.1% 0.1% 0.5% 0.1% 0.0% 0.0% 0.1% 0.0% 0.7% 0.0% 0.0% 0.1% 0.0% 0.0%

1,040 312 14,231 572 780 2,111 20,255 780 3,900 13,000 2,080 4,602 260 -

0.0% 0.0% 0.0% 0.0% 0.6% 0.0% 0.0% 0.1% 0.9% 0.0% 0.0% 0.0% 0.2% 0.0% 0.6% 0.1% 0.0% 0.2% 0.0% 0.0%

0.0% 0.0%

1,300 0.1% 260 0.1% 1,560 3,120 0.2% 0.0% 3,120 0.0% 0.0% 22,212 1.2% 4,188 1.2% 26,400 1,300 0.1% 520 0.1% 1,820 0.0% 24,432 7.0% 24,432 18,510 1.0% 11,867 3.4% 30,377 --------------- --------- -------------- --------- --------------103,824 5.6% 47,808 13.7% 151,632 --------------- --------- -------------- --------- ---------------

(277,110) -15.0% (12,655) -3.6% (289,765) --------------- --------- -------------- --------- --------------INVESTMENT AMORTIZATION 20,000 NET PROFIT (Less Investment) (309,765) BA first 3% Remaining Profit 50/50 split of 3-5% NET BA PROFIT (4% max) 50% of 3-5% and all profit above 5% of revenues to EF NET EF PROFIT 24,432 GROSS PROFIT

20.8% 25.8% 51.5% 1.8% --------100.0%

0.1% 0.1% 0.0% 1.2% 0.1% 1.1% 1.4% --------6.9% ---------13.2% --------0.9% -14.1% 0.0% 0.0% 0.0% 0.0% 0.0% 1.1%

OPERATING STATEMENT YEAR 2 Pro Forma

SALES/NET Board Sales Acadamy Voluntary sales Board Sales Language School Catering Sales TOTAL - REVENUES COST OF SALES Cost of Goods Cost of Goods - Catering Paper Supplies SUBTOTAL - COST OF SALES GROSS PROFIT LABOR Management Hourly Staff Employee Tax Benefits/Insurance Holiday Accrual SUBTOTAL - LABOR DIRECT EXPENSES Admin & Support Rent Office Supplies Kitchen Supplies Laundry & Linen China/Glass/Silver Uniforms Printing Janitorial Supplies Repair & Maintenance Catering Expense Contract Labor Equipment Rental Pest Control POS System Bank Service Charges Utilities Telephone Postage/Exp Delivery Advertising Promotion Comps Safety Shoes Computer Exp Employee Relocation Liability Insurance Taxes/Licenses Training Dues & Subscriptions Coffee Bar Commission 7% Credit Card Expense SUBTOTAL - DIRECT EXPENSES GROSS PROFIT

Bon Appétit Management Company Café The Store -------------------------------------------------911,144 33.8% 0.0% 310,250 11.5% 387,813 100.0% 1,421,748 52.8% 0.0% 50,000 1.9% 0.0% --------------- --------- -------------- --------2,693,142 100.0% 387,813 100.0%

911,144 698,063 1,421,748 50,000 --------------3,080,954

29.6% 22.7% 46.1% 1.6% --------100.0%

1,057,257

39.3%

124,100

32.0%

1,181,357

38.3%

20,000 161,589

0.7% 6.0%

19,391

0.0% 5.0%

20,000 180,979

0.6% 5.9%

--------------- --------- -------------- --------1,238,845 46.0% 143,491 37.0% --------------- --------- -------------- --------1,454,297 54.0% 244,322 63.0%

--------------1,382,336 --------------1,698,619

--------44.9% --------55.1%

195,700 7.3% 0.0% 707,316 26.3% 114,650 29.6% 355,053 13.2% 45,814 11.8% 56,585 2.1% 9,172 2.4% --------------- --------- -------------- --------1,314,654 48.8% 169,636 43.7%

195,700 821,966 400,867 65,757 --------------1,484,290

6.4% 26.7% 13.0% 2.1% --------48.2%

1,040 2,600 21,545 9,100 5,200 5,386 26,931 5,200 4,160

0.0% 0.0% 0.0% 0.1% 0.8% 0.3% 0.2% 0.2% 1.0% 0.2% 0.0% 0.0% 0.2%

260 1,040 388 260 1,300 520 1,939 1,300 520

0.0% 0.0% 0.1% 0.3% 0.1% 0.1% 0.3% 0.1% 0.5% 0.3% 0.0% 0.0% 0.1%

1,300 3,640 21,933 9,360 6,500 5,906 28,870 6,500 4,680

0.0% 0.0% 0.0% 0.1% 0.7% 0.3% 0.2% 0.2% 0.9% 0.2% 0.0% 0.0% 0.2%

10,400 2,080 4,160 536 1,300 3,120 32,318 1,300 -

0.0% 0.4% 0.1% 0.0% 0.2% 0.0% 0.0% 0.0% 0.0% 0.0% 0.1% 0.0% 1.2% 0.0% 0.0%

2,600 442 260 4,654 520 -

0.0% 0.7% 0.0% 0.0% 0.1% 0.0% 0.0% 0.0% 0.0% 0.1% 0.0% 0.0% 1.2% 0.1% 0.0%

13,000 2,080 4,602 536 1,560 3,120 36,971 1,820 -

0.0% 0.4% 0.1% 0.0% 0.1% 0.0% 0.0% 0.0% 0.0% 0.1% 0.1% 0.0% 1.2% 0.1% 0.0%

0.0% 0.0% 0.0% 27,147 7.0% 26,931 1.0% 13,186 3.4% --------------- --------- -------------- --------163,308 6.1% 56,335 14.5% --------------- --------- -------------- ---------

27,147 40,117 --------------219,643 ---------------

0.0% 0.9% 1.3% --------7.1% ---------

(23,665) -0.9% 18,351 4.7% --------------- --------- -------------- ---------

(5,314) --------------20,000 (25,314) 0 27,147

-0.2% --------0.6% -0.8% 0.0% 0.0% 0.0% 0.0% 0.0% 0.9%

INVESTMENT AMORTIZATION NET PROFIT (Less Investment) BA first 3% Remaining Profit 50/50 split of 3-5% NET BA PROFIT (4% max) 50% of 3-5% and all profit above 5% of revenues to EF NET EF PROFIT includes 3% board rate increase includes 3% salary and wages increase

Consolidated -------------------------

OPERATING STATEMENT YEAR 3 Pro Forma

Bon Appétit Management Company Café The Store --------------------------------------------------

Consolidated -------------------------

0.0% 45.0% 1,574,677 11.7% 465,375 100.0% 410,625 0.0% 41.8% 1,463,796 0.0% 1.4% 50,000 --------------- --------- -------------- --------3,499,098 100.0% 465,375 100.0%

1,574,677 876,000 1,463,796 50,000 --------------3,964,473

39.7% 22.1% 36.9% 1.3% --------100.0%

1,379,639

39.4%

148,920

32.0%

1,528,559

38.6%

20,000 209,946

0.6% 6.0%

23,269

0.0% 5.0%

20,000 233,215

0.5% 5.9%

--------------- --------- -------------- --------1,609,585 46.0% 172,189 37.0% --------------- --------- -------------- --------1,889,513 54.0% 293,186 63.0%

--------------1,781,774 --------------2,182,699

--------44.9% --------55.1%

291,571 8.3% 0.0% 772,186 22.1% 130,086 28.0% 416,447 11.9% 51,983 11.2% 61,775 1.8% 10,407 2.2% --------------- --------- -------------- --------1,541,979 44.1% 192,476 41.4%

291,571 902,273 468,429 72,182 --------------1,734,455

7.4% 22.8% 11.8% 1.8% --------43.7%

1,300 3,640 28,458 10,660 6,500 7,518 37,318 6,500 4,680 13,000 2,080 4,862 536

0.0% 0.0% 0.0% 0.1% 0.7% 0.3% 0.2% 0.2% 0.9% 0.2% 0.0% 0.0% 0.1% 0.0% 0.3% 0.1% 0.0% 0.1% 0.0%

DIRECT EXPENSES Admin & Support Rent Office Supplies Kitchen Supplies Laundry & Linen China/Glass/Silver Uniforms Printing Janitorial Supplies Repair & Maintenance Catering Expense Contract Labor Equipment Rental Pest Control POS System Bank Service Charges Utilities Telephone Postage/Exp Delivery

1,040 2,600 27,993 10,400 5,200 6,998 34,991 5,200 4,160 10,400 2,080 4,420 536

0.0% 0.0% 0.0% 0.1% 0.8% 0.3% 0.1% 0.2% 1.0% 0.1% 0.0% 0.0% 0.1% 0.0% 0.3% 0.1% 0.0% 0.1% 0.0%

260 1,040 465 260 1,300 520 2,327 1,300 520 2,600 442 -

0.0% 0.0% 0.1% 0.2% 0.1% 0.1% 0.3% 0.1% 0.5% 0.3% 0.0% 0.0% 0.1% 0.0% 0.6% 0.0% 0.0% 0.1% 0.0%

Advertising

0.0%

Promotion

0.0%

Comps

0.0%

Safety Shoes

1,300

0.0%

260

0.1%

1,560

0.0%

Computer Exp.

3,120

0.1%

0.0%

3,120

0.1%

41,989 1,300

0.0% 1.2% 0.0%

5,585 520

0.0% 1.2% 0.1%

47,574 1,820

0.0% 1.2% 0.0%

0.0%

Employee Relocation Liability Insurance Taxes/Licenses Training Dues & Subscriptions Coffee Bar Commission 7% Credit Card Expense Management Fee Depreciation

0.0%

0.0% 0.0% 0.0% 32,576 7.0% 34,991 1.0% 15,823 3.4% 0.0% 0.0% 0.0% 0.0% --------------- --------- -------------- --------14.1% 198,718 5.7% 65,798 --------------- --------- -------------- ---------

32,576 50,814 --------------264,515 ---------------

0.0% 0.8% 1.3% 0.0% 0.0% --------6.7% ---------

148,816 4.3% 34,913 7.5% --------------- --------- -------------- ---------

183,729 --------------20,000

4.6% --------0.5%

NET PROFIT (Less Investment)

163,729

4.1%

BA first 3%

118,934

3.0%

44,795 22,397

1.1% 0.6%

141,331 22,397 54,974

3.6% 0.6% 1.4%

SUBTOTAL - DIRECT EXPENSES GROSS PROFIT INVESTMENT AMORTIZATION

Remaining Profit 50/50 split of 3-5% NET BA PROFIT (4% max) 50% of 3-5% and all profit above 5% of revenues to EF NET EF PROFIT includes 3% board rate increase includes 3% salary and wages increase

OPERATING STATEMENT YEAR 4 Pro Forma

Bon Appétit Management Company Café The Store -------------------------------------------------3,069,267 74.3% 0.0% 213,750 5.2% 465,375 100.0% 799,459 19.3% 0.0% 50,000 1.2% 0.0% --------------- --------- -------------- --------4,132,476 100.0% 465,375 100.0%

Consolidated ------------------------3,069,267 679,125 799,459 50,000 --------------4,597,851

66.8% 14.8% 17.4% 1.1% --------100.0%

1,755,465

42.5%

148,920

32.0%

1,904,385

41.4%

20,000 206,624

0.5% 5.0%

23,269

0.0% 5.0%

20,000 229,893

0.4% 5.0%

--------------- --------- -------------- --------1,982,088 48.0% 172,189 37.0% --------------- --------- -------------- --------2,150,388 52.0% 293,186 63.0%

--------------2,154,277 --------------2,443,574

--------46.9% --------53.1%

300,618 7.3% 0.0% 844,040 20.4% 127,642 27.4% 448,507 10.9% 51,006 11.0% 67,523 1.6% 10,211 2.2% --------------- --------- -------------- --------1,660,688 40.2% 188,859 40.6%

300,618 971,681 499,512 77,735 --------------1,849,546

6.5% 21.1% 10.9% 1.7% --------40.2%

1,300 3,640 33,525 12,220 6,500 8,785 43,652 6,500 4,680 13,000 2,080 4,862 536

0.0% 0.0% 0.0% 0.1% 0.7% 0.3% 0.1% 0.2% 0.9% 0.1% 0.0% 0.0% 0.1% 0.0% 0.3% 0.0% 0.0% 0.1% 0.0%

1,040 2,600 33,060 11,700 5,200 8,265 41,325 5,200 4,160 10,400 2,080 4,420 536

0.0% 0.0% 0.0% 0.1% 0.8% 0.3% 0.1% 0.2% 1.0% 0.1% 0.0% 0.0% 0.1% 0.0% 0.3% 0.1% 0.0% 0.1% 0.0%

260 1,040 465 520 1,300 520 2,327 1,300 520 2,600 442 -

0.0% 0.0% 0.1% 0.2% 0.1% 0.1% 0.3% 0.1% 0.5% 0.3% 0.0% 0.0% 0.1% 0.0% 0.6% 0.0% 0.0% 0.1% 0.0%

Advertising

0.0%

Promotion

0.0%

Comps

0.0%

Safety Shoes

1,300

0.0%

260

0.1%

1,560

0.0%

Computer Exp.

3,120

0.1%

0.0%

3,120

0.1%

49,590 1,300

0.0% 1.2% 0.0%

5,585 520

0.0% 1.2% 0.1%

55,174 1,820

0.0% 1.2% 0.0%

0.0%

Employee Relocation Liability Insurance Taxes/Licenses Training Dues & Subscriptions Coffee Bar Commission 7% Credit Card Expense Management Fee Depreciation SUBTOTAL - DIRECT EXPENSES GROSS PROFIT INVESTMENT AMORTIZATION

0.0%

0.0% 0.0% 0.0% 32,576 7.0% 41,325 1.0% 15,823 3.4% 0.0% 0.0% 0.0% 0.0% --------------- --------- -------------- --------226,620 5.5% 66,058 14.2% --------------- --------- -------------- ---------

32,576 57,148 --------------292,677 ---------------

0.0% 0.7% 1.2% 0.0% 0.0% --------6.4% ---------

263,080 6.4% 38,270 8.2% --------------- --------- -------------- ---------

301,350 --------------20,000

6.6% --------0.4%

NET PROFIT (Less Investment)

281,350

6.1%

BA first 3% Remaining Profit

137,936 143,415

3.0% 3.1%

50/50 split of 3-5% NET BA PROFIT (4% max) 50% of 3-5% and all profit above 5% of revenues to EF

45,979 183,914 97,436 130,012

1.0% 4.0% 2.1% 2.8%

includes 3% board rate increase includes 3% salary and wages increase Increases food cost by 3% because HS doesn't travel Reduced Paper cost by 1%

OPERATING STATEMENT YEAR 5 Pro Forma

Bon Appétit Management Company The Store Café --------------------------------------------------

Consolidated -------------------------

0.0% 74.4% 3,161,883 5.0% 602,250 100.0% 213,750 0.0% 19.4% 823,854 0.0% 1.2% 50,000 --------------- --------- -------------- --------602,250 100.0% 4,249,487 100.0%

3,161,883 816,000 823,854 50,000 --------------4,851,737

65.2% 16.8% 17.0% 1.0% --------100.0%

1,805,779

42.5%

192,720

32.0%

1,998,499

41.2%

20,000 212,474

0.5% 5.0%

30,113

0.0% 5.0%

20,000 242,587

0.4% 5.0%

--------------- --------- -------------- --------37.0% 222,833 48.0% 2,038,254 --------------- --------- -------------- --------63.0% 52.0% 379,418 2,211,233

--------------2,261,086 --------------2,590,651

--------46.6% --------53.4%

0.0% 7.3% 309,636 21.8% 21.6% 131,462 918,456 8.7% 11.3% 52,532 481,580 1.7% 1.7% 10,517 73,476 --------------- --------- -------------- --------32.3% 42.0% 194,512 1,783,148

309,636 1,049,918 534,113 83,993 --------------1,977,660

6.4% 21.6% 11.0% 1.7% --------40.8%

1,560 4,940 34,598 14,040 6,500 9,019 45,506 12,220 5,980 13,000 2,080 5,200 536

0.0% 0.0% 0.0% 0.1% 0.7% 0.3% 0.1% 0.2% 0.9% 0.3% 0.0% 0.0% 0.1% 0.0% 0.3% 0.0% 0.0% 0.1% 0.0%

1,300 3,900 33,996 13,000 5,200 8,499 42,495 10,400 5,200 10,400 2,080 4,680 536

0.0% 0.0% 0.0% 0.1% 0.8% 0.3% 0.1% 0.2% 1.0% 0.2% 0.0% 0.0% 0.1% 0.0% 0.2% 0.0% 0.0% 0.1% 0.0%

260 1,040 602 1,040 1,300 520 3,011 1,820 780 2,600 520 -

0.0% 0.0% 0.0% 0.2% 0.1% 0.2% 0.2% 0.1% 0.5% 0.3% 0.0% 0.0% 0.1% 0.0% 0.4% 0.0% 0.0% 0.1% 0.0%

Advertising

0.0%

Promotion

0.0%

Comps

0.0%

Safety Shoes

1,300

0.0%

520

0.1%

1,820

0.0%

Computer Exp.

3,380

0.1%

0.0%

3,380

0.1%

50,994 1,560

0.0% 1.2% 0.0%

7,227 520

0.0% 1.2% 0.1%

58,221 2,080

0.0% 1.2% 0.0%

0.0%

Employee Relocation Liability Insurance Taxes/Licenses Training

0.0%

0.0% 0.0% 0.0% 42,158 7.0% 3.4% 42,495 1.0% 20,477 0.0% 0.0% 0.0% 0.0% --------------- --------- -------------- --------241,414 5.7% 84,395 14.0% --------------- --------- -------------- ---------

42,158 62,971 --------------325,809 ---------------

0.0% 0.9% 1.3% 0.0% 0.0% --------6.7% ---------

4.4% 100,511 16.7% 186,671 --------------- --------- -------------- ---------

287,182 --------------20,000

5.9% --------0.4%

NET PROFIT (Less Investment)

267,182

5.5%

BA first 3% Remaining Profit

145,552 121,630

3.0% 2.5%

50/50 split of 3-5% NET BA PROFIT (4% max) 50% of 3-5% and all profit above 5% of revenues to EF NET EF PROFIT

48,517 194,069 73,113 115,270

1.0% 4.0% 1.5% 2.4%

Dues & Subscriptions Coffee Bar Commission 7% Credit Card Expense Management Fee Depreciation SUBTOTAL - DIRECT EXPENSES GROSS PROFIT INVESTMENT AMORTIZATION

includes 3% board rate increase includes 3% salary and wages increase Increases food cost by 3% because HS doesn't travel Reduced Paper cost by 1%

OPENING EXPENSES Smallwares & Catering Kitchen Supplies, Pots, Pans & Utensils China, Glassware & Flatware Catering Equipment The Store smallwares TOTAL SMALLWARES / CATERING EQUIPMENT

Technology / Office Computers, Printers Ect. POS Café POS + MO Coffee Supplies Background checks TOTAL TECHNOLOGY / OFFICE

Décor/ Signage/ Printing Station Signage Great Expectations Merchandising Supplies Café Décor Café Menus Catering Brochures TOTAL DÉCOR / MARKETING Uniforms Cashiers, FOH BOH, Chef Coffee Shop Name Badges TOTAL UNIFORM

TOTAL ASSETS

Management & Staff Pre-opening Wkly. Salary 75,000 75,000 10,000 25,000 185,000

1,000 40,000 2 each 25,000 500 1,500 68,000

General Manager Executive Chef Opening Team/includes Air, Lodging, Food and Salaries Candidate Travel/Job Fair Staff Total Salaries & Wages Taxes & Benefits Cost

3,846 3,462 11,000 1,000

5,000 23,308 8,623.96

37%

31,932 -

INVESTMENT 260,350 31,932 100,000

Total Assets Total Payroll Total Investment Less BA Investmentt

250 6,000 500 600 7,350

260,350

11,000 1,000

Cost 2 2 1 1 1

TOTAL PAYROLL START UP

Included in numbers above.

Lead Time

1,923 1,731

TOTAL START-UP

192,282

292,282