Georgetown Country Club State of the Club February 17, 2014

Our Mission Statement With passion and enthusiasm we will provide the highest level of quality, personalized service and recognition honoring our commitment to continuous improvement. Our Goals Drive Revenue & Membership Stabilize / Control Expenses Create a higher level of member involvement Beautify / Color our Golf Course Re-invest in our Club Re-invest in our Members Re-invest in our Staff

Revenue Summary 2011 2012 2013 Trend 2014 Projected Gross Revenue = $1,996,483 (based on a membership low to high of 469 to 501 golf members) 2012 Gross Revenue = $1,996,504 (based on a membership low to high of 467 to 493 golf members) 2013 Trend Gross Revenue = $2,052,351 (based on a membership low to high of 416 to 470 golf members) 2014 Projected Gross Revenue = $2,087,734 (Dues increase only based on 400 golf members 40 social, No other financial growth)

2013 Financial Trend Summary Dues Line - $ 883,815.00 Golf Ops - $ 258,273.03 F&B - $ 725,814.08 G&A - $ 100,149.92 Pool - $ 2151.67 Misc. Revenue $ 82,147.50* * Includes Capital Improvement Total Revenue - $ 2,052,351.20 Cost of Sales - $ 384,792.18 Total Expenses - $ 1,712,035.40 Total Net - ($ 44,476.38) Asset Purchases $ 49,797.00 NOI - ($ 94,273.38)

YTD Operating Expense Increases Dec 2012 –vs- Dec 2013 Pool Tennis - $32,195 Golf Ops - $93,872 Course - $338,495 F&B - $322,804 COS - $277,241 G&A - $372,678 Total Expenses $1,434,285 Excluding any capital purchases Pool Tennis - $28,148 Golf Ops - $96,567 Course - $320,308 F&B - $343,928 COS - $288,620 G&A - $398,810 Total Expenses $1,488,210 *4% increase in expenses* Excluding any capital purchases

Year End Expense Totals 2011 $1,974,519.26 2012 $1,995,244.54 2013 $2,096,827.58 Projected Expense Increase $101,583.04 or 5%

3% INCREASE

How do we get Healthy? 416 Full Golf - $150 per month Current Dues 416 Full Golf - $150 per month 45 Social - $100 per month Total Dues Monthly Revenue – $66,900 Proposed Dues 400 Full Golf - $180 per month 40 Social - $110 per month Total Dues Monthly Revenue – $76,400

Net Operating Income Yield (NOI) 2011 Net Operating Income = ($23,150.29) 2012 Net Operating Income = ($44,879.09) 2013 Trend Net Operating Income = ($94,273.38) 2014 Projected Net Operating Income = $15,699.13 (Dues increase only No other financial growth or expense cut) ** Depreciation Excluded**

Membership Recruitment Member Sponsor Incentive New Member Incentive Golf Three (3) Months of $50 off Dues $300 in Food and Beverage Credit Six (6) complimentary Golf Guest Passes including cart Ten (10) complimentary Guest Pool Passes * Incentive given after 90 days continuous membership Social Three (3) Months of $25 off Dues $200 in Food and Beverage Credit Six (6) complimentary Tennis Guest Passes Golf Three (3) Months of $50 off Dues $300 in Food and Beverage Credit Six (6) complimentary Golf Guest Passes including cart Ten (10) complimentary Guest Pool Passes * Incentive given after 90 days continuous membership Social Three (3) Months of $25 off Dues $200 in Food and Beverage Credit Six (6) complimentary Tennis Guest Passes

New Member Contest The Member that refers the most new members to our club will receive free transferable entry into The Pinehurst Pro Am in 2015

Monday Golf Outings Resources Contact local Businesses about possible corporate outings. Chamber of Commerce Website Advertisements Member referrals Email Marketing Community Involvement Local Schools

Weddings Resources Wedding planner shows Email Marketing Website Advertisement Local newspaper adds Magazine adds Direct Mail pieces

Private Events Social Functions Business Meetings Email Marketing Website Advertisement Local newspaper Magazine Direct Mail

How does a “No” vote impact you? The Harsh Reality How does a “No” vote impact you?

Immediate Expense Cuts to Operations Reduce Golf Course budget from 426k in 2013 to 350k for 2014 Reduce Golf Course payroll from 211k to 175k and 6 total employees Reduce Golf Shop payroll from $91k to 78K Reduce F&B staff and payroll from $237k to 192k Reduce hours of operation in Restaurant and Bar

Additional Club Increases Required Trail Fee Cart Storage Fee Rental Cart Beer Price Liquor Price Food Menu F&B Minimum Other identified revenue stream

Questions and Answers