PHEASANT GLEN GOLF RESORT CLUB MEMBERSHIP PLAN EFFECTIVE JANUARY 1, 2007 GENERAL DESCRIPTION OF CLUB MEMBERSHIP PLAN PURPOSE OF CLUB This Membership Plan offers you an opportunity to acquire a membership in Pheasant Glen Golf Club (the "Club"). The Club is a private club offering golf and social facilities located in Qualicum Beach, British Columbia, Canada. CLUB FACILITIES The facilities of the Club are owned by Clan Oil Inc., a Saskatchewan corporation and operated by Pheasant Glen Golf Resort (the "Company"). Facilities include an 18 hole golf course, practice facilities with a greenside sand trap and putting greens, a restaurant/bar, and a golf pro-shop (collectively, the "Club Facilities"). The Club Facilities and the Club will be operated and managed by the Company directly or through its agent. The Company is under no obligation to add additional facilities and may change, from time to time, the facilities which are or may be available for use at the Club. MEMBERSHIP PRIVILEGES Membership in the Club is an opportunity to belong to a private club providing golf facilities. Each member will be entitled to use the Club Facilities in accordance with the privileges granted by his or her membership. INFORMATION No person is authorized to make any representations or to provide any information with regard to the Club or the 1 3/7/2016 memberships in the Club contrary or in addition to the information contained in this Membership Plan and the Club Rules. FOLLOW THESE PROCEDURES TO APPLY FOR MEMBERSHIP APPLICATIONS MUST BE MAILED OR DELIVERED TO MEMBERSHIP DIRECTOR An applicant must mail or deliver to the Company a fully completed and signed Application for Membership and Agreement, and a cheque payable to Pheasant Glen Golf Resort in Canadian funds for the amount of the Initiation Fee then due. REVIEW OF APPLICATION WITHIN THIRTY DAYS Within thirty (30) days after receiving the Application for Membership and Agreement, and the required Initiation Fee, the Company will determine, subject to any applicable law, whether the applicant has satisfied the relevant conditions of the membership. If the Company determines that the applicant has satisfied those conditions, the Company will notify the applicant in writing that the application has been accepted. However, if the Company determines that the applicant has not satisfied the membership requirements, then the Company will notify the applicant that the application has not been acted upon favorably and will return the applicant’s Initiation Fee without any interest thereon. The Company retains the right to decline any application for membership at the Company’s sole discretion. 2 3/7/2016 INITIATION FEES REQUIRED TO PURCHASE A MEMBERSHIP To acquire a membership, the applicant shall pay an Initiation Fee to the Company. The amount of the Initiation Fee will remain in effect until increased or decreased, from time to time, by the Company. The applicant, if accepted for membership, will be issued a Membership entitling the Member to pay Annual Dues (Yearly Playing Privilege Fee) for golf privileges. If the application is rejected the whole of the Initiation Fee will be refunded without interest. MEMBERSHIP DIRECTOR AVAILABLE TO ANSWER INQUIRIES Should you have any questions concerning the membership opportunities available at Pheasant Glen Golf Club or this Membership Plan, please contact the Manager at Pheasant Glen Golf Club. You may call or visit at the Golf Shop. DESCRIPTION OF CLUB FACILITIES THE CLUB FACILITIES INCLUDE GOLF, SOCIAL, AND RELATED RECREATIONAL FACILITIES The Company will provide Club members with golf, social, and related recreational facilities. The Club Facilities include an 18 hole golf course, practice facilities with a greenside sand trap and putting greens, dining facilities, a bar, and golf pro shop. The Company will maintain the Club Facilities in good condition and working order, ordinary wear and tear excepted. The Company is under no obligation to add additional facilities and may change, from time to time, the facilities which are or may be available for use at the Club. MEMBERSHIPS Golf Memberships will continue to be offered in 3 3/7/2016 the Club. A limited number of Life Memberships may also be issued. PLAYING PRIVILEGES Upon payment of the required Initiation Fee and the applicable dues, members will be entitled to the following rights of access to and use of the Club Facilities: GOLF MEMBERSHIP A Golf Membership is a non-transferable membership which entitles the member to use all of the golf and clubhouse facilities provided the member pays the required annul dues each year. Members shall be entitled to use the golf facilities with a 14-day advance booking privilege. The Company has the right from time to time to amend the booking privilege of Members to play golf and to limit Members’ use of other facilities, including, but not limited to, the driving range during certain periods. MEMBERSHIP RIGHTS The Company reserves the right, from time to time, to modify playing privileges, to establish different categories of membership, and to establish rules governing access, booking privileges, and starting times with respect to the golf course and other recreational facilities of the Club; provided, however, that the Members will always have full playing privileges, booking priority and access to the golf facilities. DEATH OF A MEMBER If a membership has been issued only in the name of one spouse and such spouse dies, the surviving spouse of the deceased member may file a new application for membership in the Club 4 3/7/2016 requesting that the deceased member’s membership be transferred to the spouse. Such request must be made, if at all, within ninety (90) days following the member’s death. Provided the spouse would otherwise qualify for membership, as determined by the Company at its sole discretion, and the deceased member’s Club account is current, the membership shall be transferred and issued in such spouse’s name, without any additional payment to the Company, and the spouse will thereafter be entitled to all privileges of the membership so acquired. INITIATION FEE No Initiation Fee will be refunded to a member or his Heirs under any circumstance, except that the Company retains the right to make any refund the Company, at its’ sole discretion deems appropriate. This right is for the sole benefit of the Company. PAYMENT OF DUES BY MEDICALLY UNFIT MEMBER A member who has requested his or her membership in the Club be temporarily suspended due to medical afflictions will continue to be obligated to pay all dues and other charges required by the Company. The Company retains the right to make any reduction in Annual Dues the Company, at its’ sole discretion deems appropriate. This right is for the sole benefit of the Company. CHANGE OF ADDRESS If a member is transferred or moves to a permanent residence not located on Vancouver Island during a membership year, the resigned member will be entitled to a refund of a prorata portion of any dues paid in advance. OUTSIDE RIGHTS TO USE CLUB FACILITIES The Company is entitled to reserve Tee times for public play. The Company may permit public access to the 5 3/7/2016 restaurant and other Club Facilities for as long as, and to the extent that, the Company deems such public access appropriate. The Company may also make all or portions of the Club Facilities available to nonmembers, on an exclusive or nonexclusive basis, for promotional, public relations, or community purposes, as part of special functions sponsored or sanctioned by the Company, and to other guests, business clients, consultants, advisors, and employees of the Company or of its executive personnel. ANNAL DUES AND ASSESSMENTS MEMBERSHIP YEAR JANUARY 1 TO DECEMBER 31 The Club’s membership year constitutes the 12-month period commencing January 1, and ending on the following December 31. PLAYING PRIVILEGE DUES SET PRIOR TO EACH MEMBERSHIP YEAR Each year the Company will determine the amount of dues, fees, and other charges to be payable for the next membership year. The amount of dues to be payable by members may be set at the level deemed appropriate by the Company. Dues are payable in advance, on or before the first day of the first month of the membership year (Jan. 1). Each member shall be legally and financially responsible for his or her acts or omissions. The failure of any member of the Club to pay the required dues, fees, or other charges within the prescribed time period will constitute grounds for forfeiture of such member’s membership in the Club. NO ASSESSMENTS FOR CAPITAL IMPROVEMENTS Members are not subject to any assessments for capital improvements. 6 3/7/2016 CONTROL OF CLUB OPERATIONS MANAGEMENT AND CONTROL OF CLUB FACILITIES AND OPERATION OF CLUB The Company or its agent will manage and operate the Club Facilities. The Company will be responsible for the administration of the Club and will have the exclusive authority to accept members, establish rules and regulations, and, in general, manage and control the affairs of the Club. The Company will also be entitled to retain any profits from the operation of the Club. The members of the Club shall be entitled to the rights and privileges set forth in this Membership Plan for a period of one (1) year from the date of acceptance as a member and payment of all fees, and said membership may be renewed annually by the payment of the annual fees subject to modification or termination as permitted herein. MEMBER’S COMMITTEE A Member’s Committee has been established to serve as a liaison between the Company and the members of the Club (the "Member’s Committee"). The Member’s Committee shall only advise and counsel and will have no management authority. The Company will meet on a periodic basis with the Member’s Committee to discuss the operation of the Club. In 2008 the Members may select the Members Committee. Selections of Member’s Committee members shall occur annually. Beginning in 2008 and each year thereafter, the members of the Member’s Committee shall be selected to serve a 2-year term, except that in 2008, one half of the members shall be selected to serve only a 1-year term. In 2009 and thereafter, selections shall continue to be held on an annual basis, 7 3/7/2016 but only one half of the members shall be elected annually to fill membership terms expiring that year. In case a vacancy in the Member’s Committee arises between the annual selections, the remaining members of the Member’s Committee shall fill the vacancy by selecting, on the basis of a majority vote, one of the other members of the Club to serve on the Member’s Committee until the next annual election, at which time, if there is a portion of the term for such membership still unexpired, the Members will also select an additional member of the Member’s Committee to complete the unexpired portion of the term. Beginning in 2008, the Chair person of the Member’s Committee shall sit as the Members representative on the Membership Committee which shall also have two members appointed by the Company. MODIFICATION OF MEMBERSHIP PLAN COMPANY MAY AMEND TERMS OF MEMBERSHIP PLAN The Company reserves the right to waive or modify the terms of membership or make any other changes in this Membership Plan from time to time as may be determined in the sole and absolute discretion of the Company. GENERAL CONDITIONS OF MEMBERSHIP CLUB FACILITIES ARE OWNED BY THE COMPANY The Company is the sole owner of the Club Facilities. Membership in the Club is not an investment in the Club nor does it provide an equity or ownership interest in the Club or the Club Facilities. Membership in the Club does not confer upon any member a prescriptive right or easement in the Club Facilities. The Company reserves the right from time to time to restrict or to otherwise reserve the Club Facilities for maintenance, tournament play, and special events. 8 3/7/2016 TRANSFER OF CLUB FACILITIES If at any time the Club Facilities are transferred, the Company shall be released from any and all liabilities with respect to the Club, the Club Facilities, and this Membership Plan, including, but not limited to, the responsibility to maintain the Club Facilities. The Company agrees to use its’ best efforts to ensure the transferee assumes all such liabilities. The Company may also assign to any such transferee of the Club Facilities all of the Company’s rights under this Membership Plan and the General Club Rules. At the time of such transfer, the Company and specifically Clan Oil Inc., shall be released from any and all obligations. GENERAL CLUB RULES Members will be required to comply with the General Club Rules, as such Rules may be modified from time to time by the Company. Prospective members should review these Rules. A membership may be suspended or terminated if the member engages in conduct which, in the sole opinion of and at the sole discretion of the Company is deemed to constitute grounds for suspension, revocation or termination. EXISTING MEMBERSHIPS The memberships at the Club, active as of December 31, 2007 shall continue, subject to the terms, conditions, and restrictions recited herein. AFFIRMATION OF OFFER The Member agrees to be bound by the terms and conditions of this Membership Plan. By paying my annual dues for the year 2008, I acknowledge that I have read and accepted and agreed to the terms of the Membership Plan as published. 9 3/7/2016