The document provides an overview of an investment opportunity to acquire Ogilvy Lakes Golf and Country Club located in Quebec, Canada. It discusses the discounted purchase price available, plans to enhance the country club amenities to increase property values and membership sales, and potential strategies to optimize development including adding lower-priced housing. The strategy aims to generate profits through property and membership sales while controlling development pace. An exit is anticipated once amenities are completed and the site's potential is demonstrated.

1. Ogilvy Lakes Country Club

2. CONTENTS 02
Introduction 03
Ogilvy Lakes Pictures 1 04
Ogilvy Lakes Pictures 2 05
Background 06
Opportunity 07
Strategy 08
Strategy Continued 09
Contact and Disclaimer 10
Obsidian Capital A.I. Analysis 11

3. Introduction 03
14th September 2010.
This document intends to briefly summarise the investment opportunity pertaining to Ogilvy Lakes Golf and Country Club with a view to acquiring the asset. It is a strategic
document that attempts to give a high level overview of the opportunity available. Its main aim is to produce discussion amongst the restricted parties listed below. This is not
an invitation to invest and is an internal document. RB and CC (see below) have formed an asset management and investment company within Switzerland (Obsidian Capital
SA) under the supervisory control of FINMA and ARIF. Most of the required due diligence has been undertaken. Feel free to call me if you have any particular queries.
Until further notice the document is restricted to the following persons (all of whom are considered as HNWI, sophisticated investors or investment professionals);
Peter Harrison (PH)
Chris Cocker (CC)
Richard Bentley (RB)
Mike Wolff (MW)
Scott Friedlander (SF)
Richard Avery Wright (RAW)
Frances Whitaker (FW)
Rob Jansons (RJ)
Vidhi Tambiah (VT)
Nick Neary (NN)
Peter Ertel (PE)

4. Ogilvy Lakes Pictures 04

5. Ogilvy Lakes Pictures 05

6. Background 06
Location
Ogilvy Lakes is situated in the municipality of Saint Faustin Lac Carre, about 1 hour north of Montreal and 20 minutes away from the
internationally renowned four season resort of Mont Tremblant. Mont Blanc, Ogilvy’s closest ski hill, is just a 5 minute drive away and there are
more than 361 ski trails within 30 minutes. In the summer, as well as having it's own golf course, Ogilvy Lakes is within a 30 minute drive of
more than 30 courses, many of them of championship quality.
Overview
Ogilvy Lakes is a property of 575 acres situated on an established 18 hole golf course with over 5kms of shoreline on two lakes, Lac Rougeaud
and Lac Vaseaux.
The property provides the opportunity of building 100 bespoke luxury log homes with either lakefront or spectacular views over the lake,
mountains or the golf course, a particularly sought after commodity in the Laurentian region. Properties on golf courses in the Laurentians often
sell for in-excess of Cad$1.5 million and the Ogilvy Lakes site has pre-sold a number of units, including some in excess of Cad$1 million.
Also included in the sale price are:
o The existing golf clubhouse and restaurant, able to accommodate 100 diners and conferencing for 150 people.
o The Ogilvy Manor House. A magnificent stone mansion of over 7000 square feet comprising 9 bedrooms.
o 2 staff houses - one of 6 bedrooms and one of 2 bedrooms.
o 3 Tennis Courts
o A reservoir and water purification system with a 40,000 gallon capacity.
The site is stunning and is extremely well located for both Tremblant and Montreal.

7. Opportunity 07
Due to the recent credit crisis the original developer of Ogilvy Lakes has been unable to complete the purchase of Ogilvy Lakes Country Club from the vendors. Cad$7.70 M
will have been paid to the vendor, but there is a balancing payment of circa Cad$3.65 M owed (the balancing payment).
An exclusive irrevocable option is available to purchase most of the site for Cad$3.65 M (including the golf course and country club in its entirety) before January 2011. This
includes everything bar the initial 38 plots that have been released in Phase 1 of the development. The estimated current value of the asset that would be purchased is in
excess of Cad$8 M. The GDV of the property portfolio is well in excess of Cad$40 million.
For the last 12 months Peter Harrison (PH) has been working closely with the distressed developer and has an open channel of communication with the vendor. For the moment
this means we have a unique insight into the deal, which is the reason we have the opportunity to buy the asset at the discounted price of Cad$ 3.65 M. PH is also overseeing
Phase 1, so concerns about conflicts of interest between Phase 1 and the rest of the site are minimal. A number of phase 1 properties are now finished which means we have
show homes to market with.
Ogilvy Lakes Country Club Special Purpose Vehicle (‘the SPV’) will be formed in order to purchase the Ogilvy Lakes Country Club along with the development rights for the 62
plots. The intention is to buy Ogilvy Lakes Country Club, financially restructure, build a best of breed country club and spa with private membership status, enhance the
planning permission, develop out and sell the luxury log homes. There are also a number of potentially lucrative development and on-sell possibilities, including selling 100
acres at the entrance of the site for Cad$1M.
Most of the infrastrucutre for the development is in place. There are some basic road construction costs of about Cad$50,000 for each of phases 2 and 3 (phase 4 needs further
investigation-but is estimated at Cad$200,000) and the main electiricty line into the development site has recently been laid. From then on, electiricty can be added to each
property on a marginal meter basis. Water and sewerage are provided through wells and septic tanks respectively, and these costs are included within our construction costs.
The golf course is mature and aesthetically pleasing. It is not the hardest course in the world (a possible advantage as there are plenty of championship courses in the area), but
it offers stunning views of the Laurentian countryside.
On paper the profits and IRRs are abnormally large. Successful real estate sales should create development profits in excess of Cad$15 M. The focus of the SPV will be to
ensure conservative execution of a best of breed development (tight control of throttle rate), generation of positive cashflow and the identification of an acceptable exit route
for investors.

8. Strategy 08
The significant purchase price discount allows the SPV room to manoeuvre, but execution and exit are critical. The main strategic points are listed below;
Distressed to De-stressed:
The current opportunity is available to the SPV because the current buyer is unable to complete the purchase. An investment of circa Cad$3.65 M will secure an asset valued at
over Cad$8 M. The SPV will purchase the asset for cash in order to convert the distressed position into a de-stressed one. With no debt, the SPV will have time to enhance the
asset, whilst locking in the initial purchase profit. The annual costs of running the country club on a skeletal service are currently circa Cad$100,000 (prior to enhancement) so
the SPV will have plenty of breathing space to optimise the asset.
Asset Enhancement:
Alternative 1
The SPV would spend circa Cad$2 million on the club house and country club amenities. Within the price we intend to do the following;
Total refurbishment of the club house and restaurant facilites, including curtilage around the club house to create an eating and recreation area with real wow factor.
Construction and fit out of swimming pool and gymnasium and construction of changing facilities
Resurface and refurbishment of the tennis courts.
Construction of reception area and fit out of pro shop
Construction of boat house for sailing club
Development of WMICCE area (weddings, meetings, incentives, conferences & conventions).
Alternative 2
Offer the country club on a long term lease basis to a professional operator, conditional on the above works (Alternative 1) being undertaken by the operator. The capital
investment made by the operator would result in a reduced lease rate. The SPV would retain the Freehold, but would eventually sell to either the operator or other external
investor.
Result of Investment
With this investment, Ogilvy Lakes will be able to offer a best of breed country club. The benefits will be significant;
Positive cash flow for the investment through country club memberships.
Positive cash flow from the lease of the restaurant.
Enhancement of the asset through the refurbishment of the country club. The value of the asset is significantly increased if the amenities are finished to a high spec, also
allowing for early exits
Log home rental income will increase due to increased demand.
Number of log home sales will increase because of enhanced country club product.
Further Development Opportunities
Potential to develop and extend the manor house to provide a 5-10 suite boutique hotel.
Develop a spa and wellness center at the most elevated point of the site, allowing for spectacular year round views of woodland, mountains and lakes

9. Strategy Cont 09
Planning Optimisation
CC and PH believe that the masterplan needs revisiting. Specifically, they would like to design a lower price point offering in the woodland back plots to tap into the domestic
market. It is felt that a log home priced circa Cad$500,000 (with a construction price of circa Cad$300,000) will attract local buyers and enhance country club membership.
Organic Growth and Throttle Rate Control
Perhaps the most common error made developing property developments like Ogilvy Lakes is to focus too strongly on the property development side, and to disregard the
underlying leisure business. This is a mistake. The raison d’etre of the country club is the joie de vivre felt enjoying its amenities. This is why the SPV needs to focus on the
country club development first and to develop a best of breed product. Get the country club right and log home sales will be sure to follow. Furthermore, if positive cash flow is
generated within the country club through membership subscriptions, the pressure to make development sales will be erradicated.
Possible Government Loan
There is a serious possibility Ogilvy Lakes SPV could apply for a federal backed loan from the Business Development Bank of Canada (BDC is a Canadian Government Loan
Organisation), and this is being investigated currently. The bank’s aim is to stimulate investment within Canada, and the loan would provide adequate working capital at a low
interest rate.
Building the right product at the right price
Businesses succeed when they produce the best product at the same price, or the same product at a lower price. I believe the low entry price point at Ogilvy Lakes Country
Club combined with the unique nature of the site will allow the SPV to produce the best product at the lowest price. Furthermore I believe the strong management team being
put into place to run the SPV will be able to steer the venture into abnormal profits. PH and CC have had an intimate working knowledge of the site within its local context for a
number of years. The global economy seems to be continuing to recover, and an unleveraged, high GDV product like Ogilvy Lakes Country Club should appeal to those
investors who would like exposure to assets that hedge future inflation.
Investment Exit
By completing the leisure facilities, I believe it is easier for investors, lenders and log home purchasers to see the site potential. This in turn should allow for earlier exit routes to
be identified.
Initial Investment amount is low compared to predicted profits. Once positive cash flow is generated the SPV expects to make investment repayments directly from cash flow. As
these grow through time and financial strength and profitability increase it will also be possible to consider a redistribution of initial investment (and further profits) through
conservative debt issuance within the capital structure of the firm. I stress the need for conservative use of debt, and only when financial status dictates its use is prudent. Cash
generation will be key here.
Conclusion and Structure
The low cost entry point of this investment should allow for large positive IRRs. An initial capital structure of 100% equity significantly reduces risk and provides much needed
breathing room and in these financially volatile times investors are as much bothered about capital preservation as capital return. The significant risk of inflation because of
recent quantitative easing policies should make a real estate product such as this appealing to investors and inital interest from Quebec and Toronto seems to suggest this to
be the case. The natural structure for an SPV such as this is likely to be corporate in nature, probably a SICAV. Investors will expect the management of a direct investment like
this to be aligned through the payment of a management fee and carried interest payment. 2 and 20 are traditional and are probably about right. I believe a 6% hurdle rate
linked to a high water mark would also be appropriate.

10. Contact Details & Disclaimer 10
CHRIS COCKER, CFA Charter Applicant The information in this presentation is subject to
Managing Director, Obsidian Capital SA correction and amendment. It does not constitute or
form part of any offer or invitation to sell or issue, or any
solicitation of any offer to purchase or subscribe for any
M +41 (0) 793 539 711 shares in either Ogilvy Lakes SPV (Malta) established in
T +41 (0) 217 113 223 Malta as a “SICAV” as defined in the Maltese Financial
E chris@obsidian-capital.com Services Fund Guide (the “Guide”) published by the
SKYPE ccmay1969 Maltese Financial Services Commission (the
Chemin Du Pertuis 9 “Commission”) or any other investment products from
1092 Belmont Sur Lausanne Ogilvy Lakes SPV (Malta). Nor shall it, or any part of it,
Suisse form the basis of, or be relied on in connection with, any
contract therefore.
The SPV may not be sold directly or indirectly in the US
to a US person. Shares in the Fund are not available for
sale in any jurisdiction in which the sale would be
prohibited. Subscriptions will only be received and
shares issued on the basis of the current Offering
Document for the Fund. It is intended solely for the use
of the person to whom it is sent. It is not an invitation to
subscribe and is by way of information only.
Please note that the price of shares may go down as well
as up and may be affected by changes in rate of
exchange. An investor may not get back the amount
invested. It is only suitable for investors who can afford
the risks involved. Performance is calculated on a total
return basis in the currency of the class and is net of all
fees. This document should be read in conjunction with
the PPM.

11. Obsidian Capital A.I. Analysis 11
7
G Site Analysis: Is it a prime and unique property investment opportunity?
G Financial Analysis: Is it distressed or discounted to Net Asset Value, allowing the fund to profit from financial restructuring?
The probability of an acceptable IRR is significantly increased by purchasing at an NAV discount.
G Top Down Analysis: Is it a preferred macro location (country and region)?
G Business Strategy: Strategically does the opportunity produce compelling results when analysed using SWOT and Porter’s 5
Forces analysis?
G Alpha Availability: Does the opportunity allow the Fund to add future value? There are a wide range of areas we analyse:
N Design - Fundamentally enhance or change the investment opportunity.
N Business Synergies - e.g. Combining property development opportunites with a hotel and spa complex to maximise
sale values and hotel profitability.
N Adding New Business Lines - e.g. Getting permission to open a new restaurant, swimming pool or spa complex thereby
adding new cash flows to the business and enhancing the product.
N Management - Parachute in knowledgeable management teams to maximise income and minimise costs
N Grants - Apply for all available grants to enhance returns
G Financial Modelling: Given the above parameters, does the opportunity offer extraordinary returns once the data is entered
into the Obsidian Capital’s proprietary modelling tool?
G Execution Capability: Is this location compatible with execution? (The SPV will build local teams on the ground in order to
minimise execution risk.)
G Exit: Does the opportunity allow for a reasonable exit?