To our Valued Villa Owners, As a follow up to the previous communication on the Villa refurbishment sent on February 18, 2014, we are pleased to provide you with the following update. You may have seen from your latest statements that Grace Bay Club has experienced an extremely positive first quarter, with record high revenues and we currently anticipate the resort surpassing 2013 year end results. Management at Grace Bay Club continues to reinvest in our property, with plans for a further $2 Million in renovations to our kitchen and food and beverage outlets for this year. As you know these amenities remain a major attraction to our guests and are critical contributors to the room revenues which we all enjoy. You will be aware that we have already re- designed the guest lobby and with your contributions this year we will be completing the Villa refurbishment project via our new partnership with renowned design group Thom Filicia Design. This new design partnership offers us enormous benefits in the form of access to materials and furniture at very competitive prices. The results have been seen in our lobby which has been widely praised by owners and the travel trade alike. The international press coverage which this small lobby project has received has been enormous, with well over a dozen articles from esteemed publications following the project. We expect a similar response once we have completed our Villas refurbishment project and thus far we have had overwhelming support from our owners.

It should be noted that Grace Bay Club has absorbed all fees associated with the design and management of this initiative which has amounted to more than $250k to date and growing. This contribution ensures that the majority of capital invested by owners is exclusively applied to the enhancement of their suite. Enclosedwithin this communication are the design presentation, together with our forecast budget and itemized list. The approach to the design has been to provide for an updated look to our suites while also remaining sensitive to the cost. The intent is to replace much of the living room furniture and artwork, including sofas, tables and lamps, area rugs, dining chairs, arm chairs, throw cushions and accessories. The suites will enjoy new paint colors to all rooms as well as decorative painting to the living area, painting of the kitchen and vanity cabinets, new lights over the kitchen bar counter, new wall sconces in the master bathrooms, new case goods where appropriate and a new chandelier in dining area. The attached detailed list will providemore information on the items included. As a general rule the design team has chosen durable, low maintenance materials and products in order to keep all suites in the finest condition for as long as possible. The furniture presentation also provides for owner options, including artwork and if needed, a different shape dining table can be presented. In some cases kitchen appliances require attention and will be replaced as and when needed or requested by an owner. Beds for master and

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