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FAQs FREQUENTLY ASKED QUESTIONS

SUMMARY These FAQs have been drafted to answer questions for potential buyers at Montage Residences Big Sky (“Residences”) located at Spanish Peaks Mountain Club in Big Sky, Montana. The project is currently under construction and is expected to open in the fall/winter of 2021. The 39 Residences are part of Montage Big Sky that includes hotel guestrooms, restaurants, outdoor pool, signature Spa Montage, an indoor lap pool and fitness center.

CONTENTS 1. Project Management: Owner, Developer, Contractor and Operator 2. Project Description and Amenities 3. Project Schedule 4. Residences Services and Features 5. Purchasing, Customizing and Furnishing a Residence 6. Club Membership Requirements and Benefits a. Spanish Peaks Mountain Club b. Yellowstone Club 7. Optional Montage Rental Program 8. Estimated Cost of Ownership – Exhibit A 9. Residences Sizes and Pricing

1. Project Management: Owner, Developer, Contractor and Operator

The Montage Big Sky project, including the Residences, is owned by SP Hotel Owner LLC, an investment entity created by CrossHarbor Capital. CrossHarbor also oversees development and operations at the Yellowstone Club. www.crossharborcapital.com

The Montage Big Sky project is being developed by Lone Mountain Land Company (LMLC), an organization also owned by CrossHarbor Capital. LMLC is also the developer of Spanish Peaks, Moonlight Basin and various projects in Big Sky Town Center. www.lonemountainland.com

Suffolk Construction Company Inc. is the General Contractor for the project, under contract to the owner. Based in Boston, but active throughout the U.S., Suffolk is responsible for overseeing construction for the project, and for hiring, managing and coordinating local subcontractors for various building trades. www.suffolk.com

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The operator is Montage Hotels and Resorts, based in Irvine, California, also under contract to the owner. Montage is responsible for operating the hotel and the residences, the optional residences rental program and the residences homeowners association. Montage is also responsible for marketing the project to prospective leisure and group hotel guests. www.montagehotels.com

2. Project Description and Amenities

Montage Big Sky includes the following facilities and amenities: • 150 hotel guestrooms (including lock-offs and rental residences) • 39 Montage Residences • Five dining outlets • Signature Spa Montage • Fitness center and Indoor lap pool • Outdoor family pool and hot tubs • Four bowling lanes and game room • Retail outlets and skier services • Paintbox, Montage’s immersive children’s program • Underground parking

More information on the project, and visual representations can be found at www.montageresidencesbigsky.com

3. Project Schedule

The project is already under construction, and is projected to be completed in the fall/winter of 2021.

4. Residences Services and Features

Each Montage Residence will enjoy all of the access and services of the hotel and dedicated residential staff, in addition to the following highlights:

• 24-hour bell service, concierge, valet, security and in-residence dining • A la carte housekeeping and maintenance services, pre-arrival provisioning, property and asset management • Special Residences owner discounts at Spa Montage, dining and retail outlets • One dedicated underground parking space • Locked storage area near owner parking space • A ski locker in the Residential locker room

Additional information on the Residences, including floor plans, can be found at www.montageresidencesbigsky.com.

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5. Purchasing, Furnishing and Customizing a Residence

Buyers purchase a Montage Residence by executing a Purchase and Sale Agreement (PSA). An executed PSA and initial 10% deposit will hold a specific Residence for the buyer. LMLC is in the process of creating a final condominium declaration and documents, and the deposit only becomes non-refundable after the condominium documents are finished (expected completion by early Spring 2019) and approved by the purchaser. At that time, another 10% deposit will be due, and the total 20% will become non-refundable ‘earnest money.’

Buyers will make additional progress payments of 10% for ‘top out’ and 10% for ‘dry-in’ enclosure, and then the final 60% will be due upon closing, when the Residence is completed and ready for occupancy.

Each Residence purchase includes interior finishes, plumbing fixtures, appliances and systems (heating, ventilation, air-conditioning, lighting). LMLC is in the process of documenting the Material and Finish Package with the specifications of finishes, appliances and systems, and will provide the Package to prospective Buyers by early Spring 2019. Buyers will have the opportunity to approve the Package prior to earnest money deposits becoming non-refundable. LMLC may also offer upgrade options for some finishes, lighting systems or other interior features.

LMLC will also offer standard furniture packages buyers may purchase for their Residence. Many of the Residences have unique layouts; therefore, buyers should consider advising LMLC as soon as possible if there is interest in procuring the standard furniture package, which LMLC will then prepare and price for the buyer’s specific Residence floor plan. The standard furniture package will be pre-approved by Montage as eligible for the optional Montage rental program as well.

Buyers may customize their Residence, but requested changes to the Residence layout, or the standard Material and Finish Package, must first be accepted by LMLC and will be executed through approved change orders with set pricing, and at Buyer’s expense. Any customization of a Residence or furnishing a residence without the standard furniture package must be approved by Montage in order to be considered eligible as well under for the optional Montage rental program.

Due to status of the project which is already under construction, and because changes can impact adjacent Residences, Buyers will have a limited time to make any changes to their Residence. As an example, relocation of fireplaces and plumbing fixtures must be requested by February 2019, and can only be modified if they do not impact other portions of the building. Changes to closets, light fixture locations and electrical outlets must be requested by July 2019. After July 2019, the only modifications that can be made to the Residences will be changes to finishes and fixtures (e.g. counters, cabinets, light fixtures, window treatments).

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6. Club Membership Requirements and Benefits

A. Spanish Peaks Mountain Club Every buyer must also apply for and, if accepted, purchase a Spanish Peaks (SP) Club Membership. As of 2018, the cost of an SP Social/Ski Membership is $35,000 with annual dues for a family of $7,900. The cost of a full Golf/Ski Membership is $60,000 with annual dues for a family of $11,548. The full Golf Membership provides access to the SP golf course, and the ability to purchase lockers in the Club locker room. The Social membership has limited access to the golf course, which currently provides access for a maximum of 5 golf rounds per year. This access may be eliminated within the next couple of years, and does not include the ability to purchase a private locker. Buyers must apply for membership, pay their membership deposit and begin paying dues after the earnest money becomes non-refundable. Buyers who currently hold a SP Club membership should connect with both LMLC and the SP Mountain Club regarding their specific situation.

B. Yellowstone Club Buyers of Montage Residences will have the exclusive option to also purchase a Yellowstone Club (YC) Membership, which currently costs $400,000 and has annual dues of $44,000. The YC membership may be ‘attached’ to the Montage Residence, and sold with the Residence so long as the new purchaser applies to and is accepted to the Club. The buyer must exercise this option within 90 days of executing the PSA. Buyers purchasing a YC membership may pay the YC membership deposit and begin paying dues whenever they wish to start utilizing the YC Club, at earliest upon executing the PSA or at latest upon closing. Buyers who currently hold a YC Club membership should connect with both LMLC and YC regarding their specific situation.

7. Optional Montage Rental Program

Montage will offer an optional rental management program available to Residence owners interested in participating in renting their Residence while away from their home. Prospective buyers may obtain more information on the Montage Rental program from Tracy Jacobson at Spanish Peaks Mountain Club:

Tracy Jacobson 406-993-3030 [email protected]

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8. Estimated Cost of Ownership

The cost of owning a Montage Residence will vary depending on the size of the Residence, how much an owner occupies their Residence and whether the Residence will be included in the Montage rental program.

The three main categories of cost are:

1. Club membership deposits and annual dues 2. Homeowner Association dues, payable to both the Resort Sub-Association and the Spanish Peaks Master Association 3. Owner ‘out-of-pocket’ costs the owner pays directly, primarily for utilities, property taxes and any insurance on the contents within the Residence

LMLC has estimated the range of these costs in current dollars, as if they were incurred today, on the attached Exhibit A. These estimates are provided only as a guide, and are not a representation or promise of actual costs that will be incurred by buyers.

9. Residences Sizes and Pricing

Residences range from 2-bedrooms to 6-bedrooms, and from 2,244 to 7,603 interior square feet. Current prices are being offered from $5,760,000 to $17,870,000.

For an up-to-date listing of available residences and current pricing, please contact Big Sky Real Estate at 888.617.6169 or at [email protected].

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EXHIBIT A

ESTIMATED COST OF OWNERSHIP Costs current as of January 2019 - Actual future costs may be inflated.

UPFRONT ANNUAL Low High Low High CLUB MEMBERSHIPS

Required Spanish Peaks Club Membership $35,000 $60,000 Social/Ski Full Golf

Spanish Peaks Club Annual Dues $7,900 $11,500 Social/Ski Full Golf

Optional Yellowstone Club Membership $400,000 $400,000

Yellowstone Club Annual Dues $44,000 $44,000

HOMEOWNER ASSOCIATIONS

Spanish Peaks Master Association (1) $3,300 $4,000 CY 2019 Future Est.

Resort Homeowners’ Association - SPMCL Condominium (2) Range in Square Feet 2,244 7,603 Range in Cost per Month per SF $1.20/m $1.00/m

Total Estimated Annual Cost $32,300 $91,200

Total Club and HOA Costs with Required Spanish Peaks Membership Only $35,000 $60,000 $43,500 $106,700

Total Club and HOA Costs with New Optional Yellowstone Club Membership $435,000 $460,000 $87,500 $150,700

OWNER DIRECT OUT-OF-POCKET COSTS

Estimates Utilities Electricity $6,200 $21,100 Water and Sewer $800 $2,800 Data (TV and Internet) $1,600 $5,400 Propane $2,800 $9,400 Property Taxes (estimated at .84%) $45,158 $149,520 Insurance on Contents (required for participation in rental program) $2,200 $11,400 Total Owner Out-of-Pocket Costs $58,800 $199,600

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(1) Master Association Includes: Road Maintenance and Neighborhood Snow Removal Neighborhood Security Neighborhood Landscaping Maintenance and Cleaning Reserves for Replacement

(2) SPMCL Association Includes: Property Insurance Common Area Utilities, Cleaning and Maintenance Property Snow Removal Property Security Property Cleaning and Landscape Maintenance Hotel Service: Valet, Bellman and Concierge Director of Residences Trash Removal and Recycling HOA Administration: Accounting, Legal and Management Reserves for placement

The information contained in this FAQ is effective as of January 2019. Details are subject to change and updates may be available from time to time.

This document is for descriptive purposes only and is subject to change without notice. The purchase terms, plans, features and amenities described herein are based upon current development plans, which are subject to change without notice. Prospective buyers should not rely on any information in this document as a warranty or representation to rely upon for making a purchase decision, which should only be made through an executed Purchase and Sale Agreement and with the advice of an attorney. Obtain the Property Report required by Federal law and read it before signing anything. No Federal agency has judged the merits or value, if any, of this property. This is not an advertisement or solicitation to purchase or sell property in states where prohibited by law. The resort project described herein (the “Resort”) and the residential units located within the Resort (the “Residential Units”) are not owned, developed, or sold by Montage Hotels & Resorts LLC or its affiliates or their respective licensors (collectively, “Montage”) and Montage does not make any representations, warranties or guaranties whatsoever with respect to the Residential Units, the Resort or any part thereof. CH SP Acquisition LLC uses the MONTAGE brand name and certain MONTAGE trademarks (collectively, the “Operator Trademarks”) in connection with the sales and marketing of the Residential Units in the Resort under a limited, non-exclusive, non-transferable and non-sublicensable license from Montage Hotels & Resorts LLC. The foregoing license may be terminated or may expire without renewal, in which case neither the Residential Units nor any part of the Resort will be identified as MONTAGE branded project or have any rights to use the Operator Trademarks. WARNING: THE CALIFORNIA BUREAU OF REAL ESTATE HAS NOT INSPECTED, EXAMINED OR QUALIFIED THIS OFFERING.