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&lt;p style="TEXT-INDENT: 0.5in; MARGIN: 0in 0in 0pt;"&gt;&lt;font style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt;" size="2"&gt;In connection with our investment in the Frisco Square property, we are responsible, through our wholly owned subsidiaries who hold title to the Frisco Square property, for half of the bond debt service related to the $12.5 million of bonds (the &amp;#8220;Bond Obligation&amp;#8221;) the City of Frisco issued to fund public improvements within the Frisco Square Management District (the &amp;#8220;MMD&amp;#8221;).&amp;#160; For each $1 million increase in assessed value for the real property within the MMD above $125 million, the Bond Obligation will be reduced by 0.5% and will be terminated at $225 million of real property values.&amp;#160;&amp;#160; At June&amp;#160;30, 2013, the total outstanding Bond Obligation was $5.7 million.&lt;/font&gt;&lt;/p&gt;
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&lt;p style="TEXT-INDENT: 0.5in; MARGIN: 0in 0in 0pt;"&gt;&lt;font style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt;" size="2"&gt;Although, as described above, we are ultimately responsible for half of the bond debt service, the Frisco Square Property Owner&amp;#8217;s Association (the &amp;#8220;POA&amp;#8221;) has the authority to assesses its members for various monetary obligations related to the Frisco Square development, including the Bond Obligation, based upon the value of the real property and real property improvements.&amp;#160; We are not the sole member of the POA.&amp;#160; The annual bond debt service assessed by the POA, is approximately $491,000.&amp;#160; We expensed approximately $0.1&amp;#160;million based upon our estimate of our pro rata share, which is included in the accompanying condensed consolidated statements of operations and other comprehensive loss for the six months ended June&amp;#160;30, 2013.&lt;/font&gt;&lt;/p&gt;
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&lt;p style="TEXT-INDENT: 0.5in; MARGIN: 0in 0in 0pt;"&gt;&lt;font style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt;" size="2"&gt;We are also obligated to construct a minimum of two parking garages with 720 spaces by February&amp;#160;1, 2018 (the &amp;#8220;Parking Obligation&amp;#8221;).&amp;#160; The City of Frisco has secured the Bond Obligation and the Parking Obligation by placing liens on the vacant land held by our indirect, wholly owned subsidiary, BHFS I, LLC.&amp;#160; The book value of the BHFS I, LLC land is $28.2 million.&amp;#160; In the event we sell all or a part of the vacant land, 33% of the net sales proceeds are to be deposited into an escrow account for the benefit of the City of Frisco to secure the Parking Obligations until the amount in the escrow is $7&amp;#160;million.&amp;#160; Currently, the escrow account balance is zero.&amp;#160; For the Bond Obligation, the City of Frisco will release the lien on the land to be sold provided that it is provided with substitute collateral worth the amount of the property to be sold.&amp;#160; As discussed above, the Bond Obligation will be reduced from time to time and terminated once property values reach $225&amp;#160;million within the MMD.&lt;/font&gt;&lt;/p&gt;
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&lt;p style="TEXT-INDENT: 0.5in; MARGIN: 0in 0in 0pt;"&gt;&lt;font style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt;" size="2"&gt;Also on February&amp;#160;19, 2013, Chase Park Plaza Hotel, LLC (&amp;#8220;CPPH&amp;#8221;), a 95% owned subsidiary of the Company that owns the Chase Park Plaza Hotel, filed a Motion for a Temporary Restraining Order, Preliminary and Permanent Injunction in the Circuit Court of the City of St. Louis, State of Missouri against James L. Smith, Francine V. Smith, Marcia Smith Niederinghaus, Kingsdell L.P. and CWE Hospitality Services, LLC (collectively, the &amp;#8220;Smith Defendants&amp;#8221;) requesting the Court remove the Smith Defendants from the property and from interfering with Plaintiff and the Hotel.&amp;#160; The Temporary Restraining Order was granted on February&amp;#160;19, 2013 and is in place until November&amp;#160;13, 2013.&lt;/font&gt;&lt;/p&gt;
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&lt;p style="TEXT-INDENT: 0.5in; MARGIN: 0in 0in 0pt;"&gt;&lt;font style="FONT-FAMILY: Times New Roman; FONT-SIZE: 10pt;" size="2"&gt;On March&amp;#160;22, 2013, the Smith Defendants filed counterclaims asserting breaches of the parties&amp;#8217; agreements, conversion of their property, and computer tampering in connection with CPPH taking control of the Hotel and seeking unspecified damages.&lt;/font&gt;&lt;/p&gt;
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