Arnold P. Mordkin and Cindy Mordkin - Page 8

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          Crestwood condominium owners; execution of documents, contracts,            
          and checks; implementation of the respective annual budgets for             
          the Crestwood Association owners' operations and lodge opera-               
          tions; preparation of items to be discussed at board meetings;              
          and preparation of monthly reports about the daily operations of            
          Crestwood Association to transmit to board members.  In addition            
          to his day-to-day responsibilities, Mr. Dempsey undertook special           
          projects on behalf of Crestwood Association, such as communica-             
          tions with the county assessor to ensure proper valuation of                
          condominium units for property tax purposes.  Mr. Dempsey's                 
          decision-making authority with respect to the operations of                 
          Crestwood Association was guided by policies and procedures that            
          were established either by the board or by controlling documents            
          such as the bylaws of Crestwood Association.                                
               During the years at issue, Gretchen Gahm (Ms. Gahm), assis-            
          tant general manager of Crestwood Association, assisted Mr.                 
          Dempsey with the day-to-day management of Crestwood Association             
          owners' operations and lodge operations.  During those years, Ms.           
          Gahm worked between 40 to 70 hours a week and was compensated for           
          her services.  In addition to her day-to-day responsibilities,              
          Ms. Gahm was involved in quality assurance activities of Crest-             
          wood Association.  The purpose of quality assurance was to im-              

          those relating to the management staff.  He was required to                 
          consult with the board in dealing with matters relating to the              
          hiring and firing of individuals in key personnel positions and             
          in creating new positions.                                                  

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Last modified: May 25, 2011