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Terry E. Branstad Kim Reynolds Stephen Larson Governor of Iowa Lieutenant Governor Administrator ABD IN RE: Kennedy Investments Inc. d/b/a Vine Tavern & Eatery The 330 E Prentiss Iowa City, Iowa 52240 License/Permit No. LC0019083 Docket No. O R D E R D-2012-00157 This Order requires the Licensee, Kennedy Investments Inc., d/b/a Vine Tavern & Eatery The, to pay to the Iowa Alcoholic Beverages Division a civil penalty of five hundred dollars ($500.00, subject to the appeal rights stated below. This Order is issued pursuant to Iowa Code 123.50 which mandates that the Division Administrator assess specified civil penalties upon licensees who, either themselves or through their agent or employees, have been found in violation of Iowa Code 123.49(2(h (underage sales. STATEMENT OF FACTS 1. Kennedy Investments Inc., d/b/a Vine Tavern & Eatery The, 330 E Prentiss, Iowa City, Iowa, (Licensee possesses License/Permit No. LC0019083, and is subject to the jurisdiction of the Iowa Alcoholic Beverages Division. 2. On May 10, 2012, in criminal case number STA0094617 in Magistrate s Court for Johnson County, Iowa, the defendant, Kevin K Lau, pled guilty to, or was found guilty of, violating Iowa Code 123.49(2(h by selling, giving or otherwise supplying an alcoholic beverage to a person knowing or failing to exercise reasonable care to ascertain whether the person was under legal age. The violation occurred on or about January 19, 2012, in the above-captioned licensed establishment in Iowa City, Iowa. 3. The Defendant, in criminal case number STA0094617, was an employee of the abovecaptioned Licensee on January 19, 2012. 4. The Defendant, in criminal case number STA0094617, was adjudged guilty of violating Iowa Code 123.49(2(h and was fined Five Hundred Dollars ($500.00, plus court costs and a surcharge. See attached Exhibit A. 5. Records maintained by the Division indicate that the violation found in criminal case number STA0094617 constitutes the first violation of Iowa Code 123.49(2(h found against the above-captioned Licensee, its agents or employees within a period of two years preceding the date of violation.

CONCLUSIONS OF LAW 6. If a licensee or an employee of that licensee is found in violation of Iowa Code 123.49(2(h, the Division shall assess a mandatory civil penalty against the licensee. See Iowa Code 123.50. Upon a first violation of 123.49(2(h, the Division shall assess a civil penalty in the amount of five hundred dollars against the violating licensee. See Iowa Code 123.50 (3. 7. The Licensee is subject to the civil penalty provisions of Iowa Code 123.50(3 because the Licensee, or an employee of the Licensee, was found in violation of Iowa Code 123.49(2(h. ORDER 8. Pursuant to Iowa Code 123.50, a civil penalty of five hundred dollars ($500.00 is hereby assessed against Kennedy Investments Inc., d/b/a Vine Tavern & Eatery The, Iowa City, Iowa. The penalty shall be paid to the Iowa Alcoholic Beverages Division, 1918 SE Hulsizer Road, Ankeny, Iowa 50021, no later than June 24, 2012, unless an appeal of this Order is brought as provided below. 9. Absent a timely appeal of this Order, failure to pay the assessed civil penalty by the required date shall be grounds for the imposition of a fourteen (14 day suspension of your license. See Iowa Code 123.50. APPEAL 10. Pursuant to Iowa Code 17A.18 and 185 Iowa Administrative Code 10.27, the Licensee may file a written Notice of Appeal with the Iowa Alcoholic Beverages Division within 30 days after issuance of this Order. The written Notice of Appeal should be sent to the Administrator of the Iowa Alcoholic Beverages Division, 1918 SE Hulsizer Road, Ankeny, Iowa 50021, and shall identify the specific portion or portions of this Order being appealed and include a short plain statement of the reasons for appeal. See 185 IAC 10.27(3. Upon receipt of a timely Notice of Appeal, the Division shall commence a contested case hearing pursuant to Iowa Code chapter 17A and 185 Iowa Administrative Code chapter 10. 11. This order shall become the final order of the Iowa Alcoholic Beverages Division if the Licensee does not file an appeal within the timeframe provided. DATED this 25th day of May, 2012, at Ankeny, Iowa. IOWA ALCOHOLIC BEVERAGES DIVISION STEPHEN LARSON Administrator

Witnesses: Officer R. Cash 410 E Washington St Iowa City, Iowa 52240 Copies to: John Lundquist Assistant Attorney General Department of Justice Hoover State Office Building Des Moines, Iowa 50319 Steve E. Bogle Iowa Lottery 2323 Grand Avenue Des Moines, Iowa 50312 Steven Mandernach Social Gaming Unit Lucas State Office Bldg. Des Moines, Iowa 50319 Chief Sam Hargadine Iowa City Police Department 410 E Washington Street Iowa City, Iowa 52240 City Clerk 410 E Washington St Iowa City, Iowa 522401826 Kitty Lake Kennedy Investments Inc. d/b/a/ Vine Tavern & Eatery The 330 E Prentiss Iowa City, Iowa 52240000 Lt. Randall Jones ISP, District #11 5400 16th Avenue SW Cedar Rapids, Iowa 52404