2

President’s Report............................................................................................................................ 3 Greystone Leadership...................................................................................................................... 4 Golf & Agronomy Report.............................................................................................................. 5-6 Building & Grounds Report.............................................................................................................. 7 Aquatics, Tennis & Fitness Report................................................................................................... 8 House Report................................................................................................................................... 9 Membership Marketing Report................................................................................................ 10-11 Dues & Fees.................................................................................................................................... 12 Welcome New & Former Members and In Memoriam................................................................ 13 Finance Report.......................................................................................................................... 14-16

3

PRESIDENT’S REPORT

Dear Fellow Members,

The Club’s Annual Report gives me a chance to reflect back on the year, share with you the club’s accomplishments, and provide you with a glimpse into the future of our great club. It’s hard to believe that another year has come and gone, but certainly 2013 has been a year to remember rather than one to forget. Worth remembering has been the Founders Clubhouse renovation and its much needed facelift this past year. And I

believe it’s safe to say that our new multi-purpose patio has exceeded expectations for its use in hosting casual events and outings as well as formal weddings. Also, when the weather has cooperated this year, the golf course has been packed and the new tennis hard courts have drawn rave reviews as well. The Fitness and Aquatics Centers were filled to capacity most of the year, and the Club has hosted on average almost an event each day (328 events and counting) with eleven weddings already on the book for next year.

This year has also been a year of many firsts. The year began with our Club hosting the SEC Women’s Golf Championship, the first of a four year commitment to host this prestigious tournament at Greystone Golf & Country Club. The House Committee created many first time venues, such as Legacy Late Night, karaoke, cooking demonstrations, Thursday Night Football and others that were designed to create member experiences you can’t find anywhere else. For the first time in Greystone Aquatics history, the three pools (Baby, Family and Adult) as well as the Pool House Grill received not just one but FOUR perfect 100 scores from the Health Department. To attract new members, another first was the recommendation by the Membership Marketing Committee and its approval by the Board of the Social Payment Plan, the Regular Member Flexible Payment Option and streamlining rather than adding to our membership classifications. Also, to retain existing members, the first Senior Perks Program was created to recognize and reward our long‐standing members, and in the works next year is a first ever Membership Rewards Program for those members who make Greystone their first choice where they spend their hard earned dollars. Your Board participated in its first ever Strategic Planning Conference as a member owned club, and has judiciously committed to and practiced sound governance throughout the year. The Board also established its first Strategic Planning Committee to understand your needs as well as those of prospective members in order to create the vision and future of our club.

On behalf of the Board of Directors, I want to thank the Staff for making Greystone such a special place in our daily lives as members. Calvin Bolling and his entire team have remained committed throughout the year to provide you with a member experience you’ll only find in a Club of Excellence. Likewise, I want to thank all our Committee chairpersons and members that served on their committees for their countless hours and commitment to making Greystone the best that it can be, and as you as members deserve and expect it to be. I also want to personally thank your Board of Directors for their personal time and dedication to making great at Greystone even better. The Board and I will certainly miss Tom Miller, Roy Sewell, Robert Fuentes and Joe Verciglio who will be rolling off the Board this year. We certainly appreciate their leadership and contributions to the club, and they leave the Board making Greystone a better club than the day they arrived. Lastly, I want to thank you, our members for supporting the Club with your membership. While the percent of revenues coming from member dues is down for the year, spending per member is up dramatically for the year. By investing in your club, together we are progressively building a fiscally responsible future and lasting legacy for Greystone Golf & Country Club.

Sincerely, Steve Vanderburg President

4

The finest Clubs, like Family Traditions, trace their roots to

strong contributions by individuals. These individuals create

the environment in which camaraderie flourishes and new

friendships begin. These individuals are Greystone Members.

BOARD OF DIRECTORS Steve Vanderburg, President Jeff Clifton, President-Elect Tom Miller, Chairman Al Del Greco Robert Fuentes Rodney Fuller Bhrett McCabe Roy Sewell Joe Verciglio Alton Parker, Legal Counsel

PAST PRESIDENTS Charlie Tickle, 1991-1997 Bob Hilton, 1998-1999 Howard Palmes, 2000 Alton Parker, 2001 Ron Ward, 2002 Manny Orfanon, 2003 Bob West, 2004 Craig Bailey, 2005 Mike Dye, 2006 Bob Moody, 2007 Rick Putman, 2008 Ron Ward, 2009 Mike Washburn, 2010 Allen Franklin, 2011 Tom Miller, 2012 BUILDING & GROUNDS Brad Rosenwald, Chair Gary Ferebee Rod Fuller Russ Hale Nancy Pratt Chuck Rast Pamela Sims Staff: Calvin Bolling, Phil Rankin

FINANCE Steve Vanderburg, Co-Chair Jeff Clifton, Co-Chair Frank Battle John Coles Wayne Graves Jeff Kaufman Steve Muncher Ron Stanfa Staff: Calvin Bolling, Chris Cochrane

GOLF Van Major, Chair Jim Clayton Rod Fuller Tim Haywood Pat Heilala Jim Herritt Jeff Kaufman Connie Miller Holt Rast Leonard Thompson Helen Walker Staff: Calvin Bolling, Rusty Howard, Dave Kuykendall, Jason Miller, Steve Smith, Darrell Ward

HOUSE Brad Rankin, Chair Donald Brewer Karen Coles Christy Jackson Eric Knouse Jackie McAtee Sue Nuby Dave Pratt Carl Sharpe Brenda Sheehan Christina Stone Gene Townley Erich Walchek Staff: Calvin Bolling, Leah Green, Daniel Mitchell, Chris Murray

MEMBERSHIP MARKETING Scott Ferguson, Chair Stephen Davis Janice Folmar Lee Herritt Thomas Lozick Kevin McLendon Tom Smith Staff: Mallory Bobba, Calvin Bolling, Ashley Fuentes

SWIM, TENNIS & FITNESS Keith Johnson, Chair Eli Anding Vickie Brewer Amy Browning Kim Johnson Valerie Mennen Jenny Merrill Stefany Roberts Nicole Stewart Mark Ware Staff: Calvin Bolling, Christy Johnson, Kristijan Mitrovski, Corinne Sweet Ryen Valentine

GREYSTONE FOUNDATION philanthropic organization

Scott Stone, Chair Steve Vanderburg Jennifer Johnson Missy McCabe Staff: Calvin Bolling, Steve Smith

5

GOLF OPERATION & AGRONOMY REPORT This year can be summed up with “the courses received plenty of natural water in the first eight months of the year” as the courses recorded immense amounts of rainfall in five of the first eight months of the year. This rainfall created a lush green turf grass for play. Despite the abundance of rainfall and unseasonably cooler temperatures in the first eight months, our Members continued to play the game they love... Golf! Golf at Greystone: Big Break NFL Puerto Rico - For the second year in a row, Greystone had a

contestant on The Golf Channel’s reality show Big Break. Al Del Greco, Men’s and Senior Club Champion, and his team are still fighting to win! Over 160 Member and guests attended the Big Break Premier Party on October 8, 2013.

Greystone hosted the inaugural SEC Women’s Golf Championship April 18-21. This was the first of four SEC Women’s Golf Championships to be held at Greystone.

The Men’s Member Guest filled up in less than seven minutes. This popular tournament which is the largest Member Guest Tournament in the state was won by Member Rusty Lett and his guest, Mike Cruse.

TaylorMade Performance Lab (TMPL) - Greystone, home of one of only 23 TMPL’s in the country continues to be an integral part of the golf operation. We have fit more players, sold more merchandise, and collected more revenue in the first nine months of 2013 than we did the previous twenty months we have been open. The Greystone TMPL was featured in two local network television news sportscasts and in a popular regional golf E-Magazine.

Greystone Invitational - The Founders course again hosted the 13th Annual Greystone Invitational which is recognized as one of the top thirty events in the world by the top Amateur Ranking body. This year’s champion’s trophy went to high school protégé Tyler Hitchner who won over 150 plus players. Also, former Greystone Invitational winners, Michael Thompson and Lee Williams won on the PGA and Web.com tours.

Aspiring Professionals: ○ Mr. Gary Christian had a season ending injury right as his game was taking off. We look forward to Gary competing on the PGA Tour in 2014. ○ Ms. Dori Carter played the season on the LPGA Tour and finished with several top 50 finishes. ○ Former Aspiring Professional Will Wilcox won his first Web.com event and qualified for the PGA Tour in 2014.

Merchandise - Greystone has more gross sales in the Pro Shops than any other club (large and small) in the state. Director of Merchandising Jennifer Tran Reno and Director of Golf Steve Smith continue to do a magnificent job in selecting great product lines for the membership. This year, the Club will see $600,000 (gross sales not including the TMPL) in merchandise. An added feature that Steve Smith offers is selling your old golf clubs on Ebay. To date, Steve has sold over $90,000 in clubs for the Members of Greystone.

Golf Outings - This year, the Club hosted (or will host) 30 golf outings which are generally held at our closed course as not to hinder Member play. These outings provide guests the opportunity to be exposed to our great golfing venues while enhancing our financial position. Many thanks to the Members who have hosted or referred outings to the Club.

Greystone’s own Al Del Greco Club Champion, Board Member

and TV star!

6

GOLF/AGRONOMY REPORT CONTINUED... Join an Open Golf Group - At Greystone, we pride ourselves on being

one of the most friendly clubs in the Southeast. There are four golf groups actively welcoming new players and we encourage you to join them. Visit www.greystonecc.com and go to “Open Golf Groups” under Quick Links on the homepage for more information on the groups and how to join in on their games.

Instruction - Director of Instruction Hank Johnson and his team of instructors continue to provide instructional programs to all age groups, especially junior golfers. Many of the junior players continue to lead their high school teams. This year, many Greystone junior golf students participated in the U.S. Kids/Teen World Championships and finished in top spots! Congratulations to Nick Dunlap, Matt Stuart, Connor Smith, John Hayden, Vasili Kartos, Angelo Kartos, Trey DeSantis, Jeffrey Travis, Drew Schroeder, Braden DiClemente, Caroline Waldrop, Caroline Gurley and Ally Washburn for your achievements in golf this year.

Course Update - Despite the record rainfall during the first eight months, Course Superintendents Rusty Howard and Jason Miller did a great job preparing the courses for play. This year, Founders Superintendent Rusty Howard reduced the number of aerification periods from two to one. This allowed for golf play in May at Founders (when aerification usually occurs) thus increasing Member rounds of golf. We will continue this agronomic practice in 2014. Legacy Superintendent Jason Miller installed four new fans in order to increase the air flow to the bent grass greens.

Men’s Club Champion Al Del Greco

Men’s Senior Club Champion Al Del Greco

Women’s Club Champion Isabel Lockhart

Boys Club Champion John Hayden

Girls Club Champion Caroline Waldrop

Men’s Match Play Jeff Kaufman

Men’s Member-Guest Rusty Lett & Mike Cruse (Guest)

Men’s Member-Member Joshua Priestley & Barry Vines

Women’s Member-Member Tricia Shikle & Brenda Lee

Grey Cup Champion Team Founders-Captain, Steve Vanderburg

Greystone Invitational Champion Tyler Hitchner

Caroline Waldrop, 2013 Girls Club Champion & Runner-Up in

2013 Women’s Club Championship

7

BUILDING & GROUNDS REPORT This year, we have seen incredible accomplishments from the Building & Grounds Committee. Four major building and capital maintenance projects were com-pleted before August 1, 2013. The projects included:

1. The addition of the two new tennis hard courts and a walking path connecting the Tennis Facility to the Founders Clubhouse

2. New Founders Patio spanning the back of the Clubhouse

3. Refurbishment of the Founders Clubhouse Main Dining Room, Trophy Room, main level restrooms and lower level hallway

4. Men’s Locker Room renovation and the creation of a Men’s Lounge

All of the projects were funded out of the Facilities Reserve Fund (capital dues contributed by each Member placed in the restricted Facilities Reserve Fund account each month) and were completed on time and within the budget. Each of the projects have received overwhelming support and accolades. Thanks to Frank Paduch and KFP Inc. for exceeding expectations in completing the Founders Patio, walking path, Men’s Locker Room renovation and Men’s Lounge.

At the conclusion of 2012 and the first quarter of 2013, five sub-committees were created to identify and analyze each area of the Club.

A. Interior Décor B. Exterior, Structural, Roads and Buildings C. Mechanical, Electrical, Communications, Kitchen and Utilities D. Master Plan E. Golf Course Maintenance/Master Plan

The purpose of each sub-committee was to create a dynamic document that identifies capital and operational funding needs for each area over the next five years and beyond. The Finance Committee and the Board will use the document for future projects in conjunction with the Facilities Master Plan.

Another project this year was to identify possible future “small scale” projects to be completed using Facilities Reserve Fund monies. Each of the projects must be carefully analyzed prior to requesting funding.

The Committee’s work also included a comprehensive study of the Club’s utilities to ensure that the Club is being as efficient as possible. The Power Analysis Report reflected that the Club power rates are the best possible and the Club should continue to replace lighting with more efficient lighting. We appreciate the dedication and hard work by all Committee Members.

Patio Grand Opening • April 13, 2013 Left to right: Tom Miller, Frank Paduch, Jeff Clifton,

Calvin Bolling, Joe Verciglio, Nancy Pratt, Brad Rosenwald, Mike Washburn and Steve Vanderburg

A glimpse of the Founders Patio and walking path coming from the Tennis Facility

8

SWIM, TENNIS & FITNESS REPORT

Aquatics Cooler temperatures and rain impacted participation this season but did not hinder the fun that was had at the pools! Over 10,230 visits occurred at the pools, and the Adult Pool exploded in added activities in 2013. The Sunday volleyball games were a huge hit! The Family Pool hosted pool parties, swim meets, member events and weekly Dive-In movie nights.

The Gators Swim Team coached by Andy Gray and Kim VanValkenburgh completed a four wins/two losses season and qualified thirty of its swimmers for the Senior County Meet. Former Greystone Gators, Alex Gray and Hank McKay received college scholarships and are swimming collegiately.

For the first time in Greystone Aquatics history, the three pools (Baby, Family and Adult) as well as the Pool House Grill received four 100 scores from the Health Department (that is nearly impossible in Shelby County)!

Aquatics Director Corinne Sweet added an additional cabana on the Adult Pool deck, a registration area, and a towel unit at the Family Pool. All have added satisfaction and efficiency.

Tennis This has been any incredibly exciting year at Tennis! The addition of the two hard courts has added a tremendous benefit to our junior players and ladies playing in hard court events.

The Club hosted three USTA junior sanctioned tournaments with over 90 participants in each event. Hoover Toyota, owned by Member Gordie Stewart is our title sponsor for the annual Hoover Toyota Open, a junior tournament that continues to grow and “wow” parents and players with special touches including the red carpet and bagpiper.

Greystone’s junior program continues to grow with over 100 kids regularly taking lessons and participating in clinics. This dynamic program encourages all age groups and skill levels.

The ladies program consistently fields nine teams in the USTA soft court league with numerous teams advancing to the State Championship in Mobile and Gulf Shores.

Co-Directors of Tennis, Ryen Valentine and Kristijan Mitrovski along with Assistant Lucia Von Der Hayde have spent a tremendous amount of time on the courts providing instruction. Over 4,800 hours of instruction were recorded in 2013. This represents an increase over past years.

Lyn Gilbert, Merchandise Manager continues to be a leader in the city with her lines of merchandise. After seventeen years, we all said goodbye to Randy Smith who served as our Court Maintenance Specialist.

Randy started a new journey in his life showcasing his musical talent.

Fitness

Fitness Director Christy Johnson, Assistant Fitness Director Todd Makofski, and Instructor Rita Ciamaichela continue to provide expert and dynamic personal and group training. This year, the trio performed over 3,750 personal training sessions.

Participation is up 6.34% over 2012 with 10,597 visits in 2012 and 11,314 visits in 2013.

As of early November 2013, we are in the final stages of selecting a new line of equipment for the Fitness Center.

Save the Os 5K/1M Fun Run raised over $45,000 for ovarian cancer research and had over 600 participants! A record!

The Merrill Family • Gators Swim Meet

Save the Os 5K/1M • August 17, 2013

Co-Directors of Tennis, Kristijan Mitrovski and Ryen Valentine

9

HOUSE REPORT This truly has been an exciting year at Greystone as the Club and House Committee have been extremely active in creating special events and providing all Members with activities at the Club.

The creation of the Founders Patio has been a huge success and continues to be used by all Members. It is quickly becoming the “favorite gathering spot!”

Survey Party – Over 250 Members and their families were rewarded for completing their Members Survey, Making Great Better with complimentary food, beverages and live entertainment.

Rock Stars on the Green complimentary community music fest was held on the Founders driving range and was attended by close to 2,000 Members, Residents and their invited guests. The event was arguably the event of the year in the Greystone community. Thank you to Chairperson Christy Jackson for organizing and executing this amazing event!

Big Break NFL Puerto Rico Premier Party was held on October 8th with 160 Members and guests cheering on Member Al Del Greco.

Fun Friday – On the first Friday of each month (excluding December), the Club hosts a complimentary adult cocktail party with complimentary hors d’oeuvres and live music. On Friday, September 6th, 190 Members attended a special concert by Member Gordie Stewart. Gordie played for three straight hours and was amazing! Be sure you don’t miss Fun Fridays at Founders.

Wine Program – Our Food & Beverage Team hosted three wine dinners in 2013 with the highlight being Silver Oak and Fisher Vineyards. Each event was sold out with over $15,000 in wine sales! Two wine festivals, one in the spring on the Founders Patio and one in the fall (coming Friday, November 22nd). Attendance is always strong for the festivals and many Members purchase wines for their private cellars.

Greystone hosted two Lobster Nights with 125 Members in attendance. The Club hosted three Steak Nights at Legacy with Chef Daniel Mitchell and his Culinary Team cooking

quality cut of beef and fish over smoldering oak wood on the outdoor grill behind the Legacy Clubhouse. Jersey Boys Dinner, Transportation and Play at the BJCC

was a signature sold out event. Late Nite at Legacy – This extended program

encourages Members to “stay inside the gates” for after hours entertainment. Legacy Late Nite features specialty cocktails and tapas “small plate” menu items. The featured Late Nite event was held on Saturday, August 17th as Members took the mic and showcased their talents singing karaoke.

Executive Chef Daniel Mitchell completed two cooking demonstrations for the membership. The programs consisted of a mixology demonstration by Front of House Manager Chris Murray and an elaborate educational culinary demonstration by Chef Daniel.

In 2013, the Club hosted 328 events (including corporate and committee meetings). We anticipate hosting over 340 events at Greystone (that is nearly one per day). In 2014, we have already booked eleven wedding receptions. A this time last year we had six booked. The new Founders Patio has allowed us to have multiple medium to large events on the same day. FYI, banquets/wedding events represent approximately 40% of all Food & Beverage gross revenues.

Rock Stars on the Green June 15, 2013

Executive Chef Daniel Mitchell Serving Greystone Since 1999

10

MEMBERSHIP MARKETING REPORT

Marketing Efforts Continuation of our Direct Mail Marketing Campaign in 2013 to

10,000 surrounding homes to showcase the Club, highlight benefits of belonging with an invitation to experience the Club.

The 8th Annual Bring Your Sticks to the Stone Prospective New Member Golf Scramble was held on the Founders Course on Sunday, April 28, 2013. Thank you to our Member Hosts: Jeff Clifton, Van Major, Tom Miller, Scott Ferguson, Lee Herritt Robert Cole, Chris Kendall, Kim & Frank Paduch, John Emmel, Larry & Connie Miller, Mario Moore, Rich Bares, Robert Fuentes, Tommy Parsons, Brad Rankin, Tom Shoupe, Tom Smith, Ron Ten Berge and Ron Ward. Thanks to Gordie Stewart for providing the hole-in-one car from Hoover Toyota!

Social Payment plan established to attract new Members. New Social Members can pay $5,000 lump sum or opt for the new pay-ment plan: $2,000 paid at acceptance, an additional $2,000 at 1st Anniversary and a final payment of $1,500 at the 2nd Anniversary.

Flexible Payment Option under Regular Membership created, offering greater affordability in exchange for access to the Club with a non-binding payment plan agreement. New Members joining with the Flex Plan Option pay $3,000 at acceptance and $719 in monthly dues. Each month, $519 goes towards Regular dues and the remaining $200 towards payment of the Regular initiation fee. An additional payment of $4,000 is due at the beginning of the 3rd year (25th month) and the final payment of $5,000 at the beginning of the 5th year (49th month). In the 50th month, dues will decrease back to the Regular level (currently $519). At any time during the 1st – the 50th month, the Member may exit the Club with a 30 day advanced notice without penalty or obligation to complete the payment plan.

Streamlining Membership Offerings— the Club will cease the sale of new Associate Memberships effective December 31, 2013. Now is the time, with the remaining days of 2013 to refer your friends and neighbors to the Club. Waiting until the spring to join will cost them an additional $6,000 since the Regular golf membership will be the only option. Please help us spread the word! Contact Ashley Fuentes for further details: afuentes@greystonecc.com or (205) 986-5146.

Greystone’s Social Media Marketing continues with Facebook, Twitter, Instagram, Pinterest, YouTube and Clubster. Be sure to check out the Rock Stars on the Green video on the Club’s You Tube page, created by Telegraph Branding. Join the conversation and engage with fellow members...

Cris Ferguson, Courtney Cahalan &

Michelle Harper • Sticks to the Stone 2013

Stats generated November 6, 2013

Facebook.com/Greystonegcc | Launched August 2011 | 653 Page Likes | 3,395 Total Reach

Twitter.com/Greystonegcc | Launched August 2011 | 374 Followers

Instagram.com/Greystonegcc| Launched March 2013 | 273 Followers

Pinterest.com/Greystonegcc| Launched March 2013 | 12 Boards | 109 Pins

YouTube.com/GreystoneCountryClub| Launched September 2013 | 282 Views

Clubster.com| Private site specific to Greystone Members | Launched January 2013 | 255 Members

Clay Brannum, Ron Ten Berge & John Hackett

Sticks to the Stone 2013

11

2011 2012 2013 Forecast 2014 Budget

New Members 80 63 42 70

New Members through the Gifting Program

0 6 10 7

Junior Upgrades 1 1 2 3

Redemptions -2 -3 -5 -5

Resignations -84 -76 -80 -74

Net -5 -9 -31 1

MEMBERSHIP MARKETING REPORT CONTINUED...

Retention Programs for Existing Members: Senior Perks Program created to recognize and reward those who meet “the Rule of

85,” meaning they are at least 65 years old with a minimum of 20 years in the Club, or any age/years at the Club that totals 85. Our long-standing Members of the Club receive the following perks: Twelve complimentary golf passes per calendar year, one complimentary golf cart pass each month, one complimentary golf clinic each quarter, one complimentary Sunday brunch buffet with the purchase of an adult Sunday Brunch buffet per quarter, and grandchildren of these qualifying Members may swim at the pool without paying the guest fee when accompanied by the grandparent. Special thanks to Ron Ward, Paschal Redding, Rudy James, Roy Etheredge and Jack Pfrimmer for addressing these initiatives to reward senior age members.

2013 was the first full year of the Gifting Program, designed to give Equity Members added value/benefit to their membership. The goal of the Gifting program is to attract new dues-paying members while at the same time reduce the future redemption liability for the Club. Currently we have 341 Equity Members with Gifting Rights and a total of sixteen new Members have joined through the Gifting Program since its inception. As an added incentive to encourage future Gifting, the Board has approved a complimentary golf cart for one full year for each Member who brings in a new Member through the Gifting Program.

In the fall of 2013 we launched an Amnesty Program in an effort to welcome back some of our former Members. As of November 19, 2013, eight have returned to the Club with more to come in December.

Right around the corner/coming in 2014: Greystone will offer a 45-day Trial Membership in the spring of 2014 with the return of our Passport Program.

Program dates will run from April 12 – May 26 (Memorial Day) and Passport Guests will have complete access to all amenities of the Club without frequency limitations. The invitation to experience Greystone will be offered for a $1,000 upfront fee and those electing to join at the end of the Program will be able to apply the $1,000 towards the initiation fee of any membership at the Club. To add a friend to the Passport Guest List, contact Ashley Fuentes via email afuentes@greystonecc.com.

Membership Growth & Retention—a glance back and planning forward

The Wares making memories

at Greystone!

12

CLUB DUES & FEES

The Board of Directors unanimously adopted the following dues and fees for the year 2013. We anticipate no changes in dues and fees in 2014. A list of 2013 membership dues and fees is available on the Club website at

www.greystonecc.com in the Membership tab, Offerings & Information.

2012 2013 Life Membership Dues $0 No change Regular, Associate, Corporate Executive Dues $519 No change Non Resident Dues $173 No change Junior Dues $260 No change Social Dues $260 No change Resident Dining Dues $75 No change

Facilities Reserve Fund (effective September 2011) Regular, Associate, Corporate Executive $50 No change Non-Resident $17 No change Junior & Social $25 No change Resident Dining $7 No change

Service Charge on Club & Member Functions 18% No change Quarterly Food Minimum $200 No change Full Locker (per quarter) $75 No change Half Locker (per quarter) $35 No change Privacy Locker (per quarter) $15 No change

Club Storage (no charge for first set) $80/year (per additional set) No change Shoe Shines Complimentary No change Pool Guest Fee $5 No change Tennis Guest Fee $5 No change Fitness Guest Fee $5 No change

Golf Cart Rates: Guest Fee (18 holes / 9 holes) $100/$50 No change Family Guest Fee (18 holes / 9 holes) $50/$25 No change Golf Cart Fee (18 holes / 9 holes) $19/$9.50 No change *Golf cart fee waived for Members who Gift in 2014

Pull Cart Fee (18 holes / 9 holes) $8/$4.50 No change

Golf Family/Guest Fees: Immediate Family per month 1st round: $50 No change 2nd round: $50 No change

3rd round: $100 No change 4th round: $125 No change 5th & up: $150 No change

Guest per quarter 1st round: $100 No change 2nd round: $150 No change

3rd round: $200 No change 4th & up: $250 No change

*From December 1 - February 28, golf guest pricing per visit is $75. Reduced golf fees apply on specified Saturdays during college football season.

13

Michael Frazier

Manny Orfanon

James McManus

Hugh Parish

Tommy Stinson

Glenn Wright

Chris Barnes

Larry Day

Robin Hurst

Steve Johnson

January 1, 2013— November 19, 2013

January 1, 2013— November 19, 2013

Chuck Kramer

Wayne Ledbetter

Andy Lemons

Deb Lenart

Mike Lindsey

Brian McDearis

Justin Meko

Joseph Miller

Joseph R. Miller

Chester Parker

Dennis Pauls

Curtis Pierce

Ric Rice

Sean Ryan

Steven Sanders

Craig Satterfield

James Smith

Ron Smith

Ron Ten Berge

Jeff Tomko

Christopher T. Vines

Jack Watanabe

Jun Watari

Thomas Wilder

Joshua Williams

Shawn Arterburn Mike Barclay Sheila Benson

D’Anne Bounds Shawn Bradley Chuck Brand

Tim Breen Kyle Cahalan Jason Cannon Jason Carner

Michael Clinton Bobby Collier

Jonathan Collier Jeff Cooke

Brian Copenhaver Carl Crosby

Shon Cunningham Sky Everett

Steven Eversole Bobby Feagin Jim Graham

Stephen Green Greg Gullung John Hackett Kevin Harper Danny Harrell

13

14

FINANCE REPORT

The Finance Committee has been extremely busy this year and would like to thank each of the members and staff for their dedication and hard work. While we continue to make improvements towards profitability as a member owned club, we again expect to exceed the year-end budget. The Board, Committees and Staff remain committed to look for ways to reduce expenses and grow our revenues in order to address our budget shortfall.

2013 has been a year of ups and downs that has seen a significant increase in per member spending and higher member satisfaction, but membership numbers have been stagnant overall. New member additions have met budget throughout the year but those have been offset by resignations. Lower total membership numbers, combined with poor weather at key points in the year, resulted in lower sales in several areas, especially with Golf Guest and Cart Fees. Overall dues revenue has remained behind budget due to a large number of resignations early in the year. However, recent changes in our membership offerings have led to a late-year surge in membership additions that we expect to continue throughout the end of this year.

On a positive trend, year-to-date spending in the Food & Beverage area is at a five-year high. This is due to our members commitment to make Greystone their first choice in dining and social engagement as well as a highly motivated and fiduciary staff to complement member interest in food and beverage. New venues such as the Founders multi-use Patio and enhancements to the Founders Clubhouse have contributed to this surge in food and beverage sales. The new areas allow the Club to host multiple events in the same day without disrupting normal member activities.

The patio, dining room enhancement, men’s locker room update and new tennis hard courts were a huge improve‐ment to the Club’s offerings. This has been an excellent investment of your monthly contributions to the Facility Reserve Fund (FRF), totaling just over $750,000. Cash reserves into the FRF are accruing once again after these much needed facilities improvements with approximately $30,000 per month being added to the reserve account.

As in years past, membership growth and retention remains our most important financial challenge. With two golf courses and clubhouses, and a Club that is open 364 days a year, Club Management staffs operations as efficiently as possible yet is committed to not degrade the level of service you expect and deserve. To date, the staff has delivered on their commitment to hold the line on expenses as evidenced in the 2013 financials.

However, until the Club achieves its budget goals in terms of members and dues, current members can once again expect a reasonable dues recovery charge. As in the past, a dues recovery charge has been the preferred and most effective method of attaining financial breakeven since it is a one-time charge and does not compound annually as opposed to a dues increase.

The chart below reflects the Departmental Profit/Loss for 2013. As with most all Country Clubs, ours being no exception, every operating department shows an operating loss. These numbers do not reflect any dues subsidy. Dues are needed to subsidize all departments.

Departmental Profit/Loss Based on 2013 Forecast

(in '000s)

Revenue Expense Profit/(Loss)

Golf $ 1,317 $ 3,281 $ (1,964)

Tennis 51 251 (200)

Fitness 15 98 (83)

Pool 18 112 (94)

F&B 985 1,277 (292)

G&A/Other 349 806 (457)

Clubhouse - 864 (864)

Dues 3,838 187 3,651

Operating Income $ 6,572 $ 6,876 $ (304)

15

FINANCE REPORT CONTINUED...

Operating Results Comparison for the Twelve Months Ended December 31, Through October 31, 2013 & 2013 Forecast Un-Audited (in '000s)

2009 2010 2011 2012 2013

October 2013

Forecast

INCOME:

Green Fees $ 258 $ 247 $ 268 $ 302 $ 234 $ 260

Cart Fees 457 417 461 523 414 474

Golf Outings 99 92 142 228 224 238

Golf Shop (Net) 117 168 150 171 130 162

Other Rentals/Fees 72 70 66 65 46 81

TMPL - - 53 83 70 80

Food & Beverage (Net) 889 789 807 976 861 994

Swim (Net) 23 15 17 17 19 18

Tennis (Net) 48 40 36 33 52 57

Fitness (Net) 13 13 12 13 16 19

Membership Dues 4,027 4,082 3,939 3,928 3,204 3,841

Dues Recovery - 303 - 72 - -

Other Income 330 347 359 350 297 354

Total Income $ 6,333 $ 6,583 $ 6,310 $ 6,761 $ 5,567 $ 6,578

EXPENSES:

Golf Shop $ 801 $ 775 $ 767 $ 825 $ 717 $ 847

TMPL - - 57 69 57 69

Food & Beverage 1,100 1,055 1,226 1,219 1,042 1,266

Swim 114 117 116 117 110 112

Tennis 230 231 220 226 214 256

Fitness 90 93 82 96 81 99

Course Operations 2,505 2,460 2,369 2,368 1,992 2,328

Clubhouse 929 897 953 866 723 864

General & Administrative 979 902 805 813 681 815

Membership 127 176 180 201 162 200

Total Operating Expenses $ 6,875 $ 6,706 $ 6,775 $ 6,800 $ 5,779 $ 6,856

Cash Flow from Operations $ (542) $ (123) $ (465) $ (39) $ (212) $ (278)

Capital Expenditures (334) (232) (247) (237) (172) (237)

Membership Capital Reserve (25) - - - - -

Debt Service (principal) (35) (111) (119) (113) (98) (118)

Debt Service (interest) (33) (96) (88) (53) (40) (48)

Membership

Membership Sales 468 793 507 270 203 229

Deferred Initiation Receipts 169 154 122 249 220 330

Redemption Payments (72) (72) (72) (76) (61) (100)

NET CASH FLOW $ (404) $ 313 $ (362) $ 1 $ (160) $ (222)

16

Comparative Balance Sheet - Condensed

As of October 31, 2013

Un-Audited (in '000s)

2013 2012

Cash - Operating $ 34 $ 17

Cash - Reserves 458 819

Receivables 421 485

Prepaid Expenses 50 47

Inventory 344 335

Fixed Assets 21,365 21,038

Total Assets $ 22,672 $ 22,741

Payables $ 481 $ 556

Prepaid Dues 111 121

Unearned Revenue 33 16

Note Payable 1,154 1,271

Total Liabilities $ 1,779 $ 1,964

Member Equity $ 20,893 $ 20,777

Total Liabilities & Equity $ 22,672 $ 22,741

FINANCE REPORT CONTINUED...

On the Balance Sheet through October 31, 2013, the biggest variance is in cash reserves. This is due to the four major capital projects completed this fiscal year.