Knollwood Country Club Semi-Annual Membership Meeting August 13, 2014

Knollwood Country Club – Next Steps For 2014 & Beyond  Increase our marketing efforts via local outlets & increase exposure to Knollwood Work with the MGA and get the message out about our capital improvements Utilize Westchester media Strategic print ads placed in Westchester Golf & Social Magazines, ESPN commercials, The Lexus Perfect Drive ads and the 18 th hole will be featured in the MGA’s fall publication.  Drive membership Incentive credit offered for each new Member sponsored by an existing Member Look to attract a group of golfers from one of the other area clubs Membership Committee has been very active reaching out to local real estate community, college alumni associations and prospective members. Membership credit has not been a major driver.  Seek to obtain highly visible local tournaments Knollwood will host a qualifier for the prestigious IKE and Westchester Amateur  Better understand what the Membership wants from their club Create a survey specifically geared towards usage of the restaurant & bar Do we need to be open as much for dining during slow periods? Are we having too many special functions? How much can we save with a different schedule House Committee monitoring usage and will produce findings and a survey sometime in the Fall  Create a tight budget to offset potential “non-controllable” expense increases The local restaurant union contract expires in 2014 The Affordable Care Act potentially driving benefit costs higher

Knollwood Country Club – Golf Committee Update A Year of Great Progress !! Substantial Completion of the 18 th Hole Green Expansions - Hole #’s 5,7,10,11,13,14 Superb and consistent conditions Implementation of Senior Tees Course re-measurement and rating Plans for Remainder of 2014 Renovation of left 18 th Hole Bunker Green Expansions - Hole #’s 4,8,17,18 Tee Box Leveling – Front of 2, Blue Tee on 4, Ladies Tee on 9 and Blue/White Tees on 13 Future Plans – Bunker Restoration Our Course = Our Greatest Asset Our Bunkers = Our Greatest Liab. Investigative Progress Started Long Term Plan to be presented at 2014 Annual Meeting.

Knollwood Country Club – House Committee Update Membership dining down…member special events (Super Bowl, July 4 th, Lobster night) up Outside Revenue increased significantly due to increased outings and parties Higher payroll due to full time salaries and increased outings Summer Camp program successful Saturday usage is still lightest of the week Membership Spending increased Outside Revenue increased Total Bar Costs higher driven mainly by higher beverage purchases and inventory inflation Next Steps: Monitor the number of special events to create better demand & reduce costs Continue to reduce costs margins in the restaurant by having more outside events

Knollwood Country Club – Capital Committee Update 2014 Projects 18 th hole Renovation Men’s Locker Room Upgrade Various Golf equipment replacements Remaining Projects Left Bunker on the 18 th hole Various Golf related costs Turnesa Room Carpet Replacement and painting Installation of 2 new Har Tru tennis courts (est. $165k) Cash Escrow Analysis Tennis Court Rationalization KCC is the only country club in our competitive set without this amenity Many prospective members have inquired about tennis during the interview process. Much needed amenity to accommodate to appeal to active families. Approved by the board July, 2014 Beginning the town approval now and hope to begin construction early 2015

Knollwood Country Club – Membership Committee Update New Members 28 Changes in Status EAM Magnitude New Members 17 Changes in Status EAM Magnitude $55,000 Initiation Fees $ 8,800 Member Referrals Completed Trial & Sunbird Classifications $2,000 Referral Incentives College Alumni Program Real Estate Introductory Event Cornell Club Reciprocal Westchester /WAG Articles & Ads Projected Associate Members Incentives Pool & Tennis Classification Westchester /WAG Articles & Ads College Alumni Program EAM = Equivalent Active Members Increasing membership is critical to maintaining a healthy cash flow. We need to continue to be creative & aggressive in attracting new members without compromising standards.

Clearly we cannot afford to lose market share…. Knollwood Country Club – Importance of Membership Net EAM Losses Mean Increases in Cost to Those That Remain Losing Market Dues Increases Competition Price/Value Service Reductions Assessments Amenity Reductions  Increase and Maintaining Membership critical  Knollwood needs to continue to adapt to changing socio economic trends to attract new Members  Capital dollars should be spent in ways that help attract new Members  Patience is required…some changes may not pay immediate dividends but should have long term benefits.

Knollwood Country Club – Treasurer’s Update Notes Revenue increase due to higher F&B revenue Payroll higher due to increase in outings and benefits costs Other Expenses are in line with budget & 2013 totals Next Steps Continue to be aggressive attracting new members. Membership dues are vital to financial stability. Manager payroll efficiently Closely monitor other operating expenses for the remainder of the year. If breakeven cannot be achieved with flat expense growth then the Board needs to hear from the Membership as to whether we should reduce services, increase annual dues or continue to bear 5%-10% assessments Current projections forecast a potential $1,000- $1,500 operating assessment at year end 2014

Appendix

Knollwood Country Club – Fall 2014 Board of Governors Elections Membership participation is critical to Knollwood’s success. Committee work touches all operational aspects of the club and is instrumental in achieving long term success. Exiting Board Members Bob Hughes Ed Fabiani Frank Leone Len Bencivenga Returning Board Members Nelson Soracco Gene Leyden Tony Procops Dan Amicucci David Sherwin Mike Colasuonno Craig Adams Nominating Committee Michael Ciaramella John Bonito 4 boards seats are up for election this fall. The tables shows the status of the board seats available for the November election. Please contact the nominating committee if you have any interest in running for the board.

Knollwood Country Club – Industry Comparative Analysis CategoryKnollwoodWestchester County Average Annual Dues$13,220$11,421 Food Sales – Gross Profit57%58.5% Food Sales – Cost of Goods42.9%41.5% Bar Sales – Cost of Goods31.1%28.0% Golf Course Maint – Per Hole$72,819$84,513 Golf Shop/Bag Room Exp$19,873$31,360 Based on projections supplied by Condon O’Meara McGinty & Donnelly LLP