Dear Marriott's OceanWatch Villas at Grande Dunes® Owners, Following Hurricane Florence's recent impact on the resort, the management team at Marriott's OceanWatch Villas would like to provide you with an update on the resort's status. The Myrtle Beach area experienced tropical storm force winds and significant rainfall (more than 10") over a 48-hour period. Although wind damage was thankfully limited across the immediate Myrtle Beach area, the tremendous rainfall that occurred over an extended period resulted in localized flooding throughout the Myrtle Beach area, and damage to the resort. Subsequent to the mandatory evacuation order being lifted on Sunday, September 16th at 9 a.m., the following actions took place to prepare the resort for its partial reopening on Friday, September 21st: The resort's management and remediation teams were onsite within thirty-minutes of the evacuation being lifted for Horry County. The insurance adjuster and the management company's risk management team were onsite September 17th and 18th. The resort's management and remediation teams finalized moisture mapping in all buildings late in the week of September 16th and established a restoration schedule for the areas that were impacted at the resort. Marriott's OceanWatch Villas partially reopened for occupancy with approximately one-third of the resort's villas on Friday, September 21st following initial storm assessment and commencement of remediation activities. Hurricane Florence caused varying degrees of damage throughout the resort, ranging from minor water intrusion in some of the villas and public spaces, to water intrusion that will require the complete removal, disposal and replacement of drywall and carpeting in impacted areas. A remediation company is currently on-site and is working with the management team to assist with drying rooms, pulling carpet and reconstructing as conditions require. The management company is in process of identifying an exterior façade consultant to analyze the villa building facades and windows to attempt to identify the source of the water intrusion that occurred. If you are due to arrive for an upcoming vacation at the resort, we want to ensure that you have the proper expectations of the conditions of both the resort and the surrounding areas prior to your departure for the resort, as renovation efforts continue. The following is the current status of certain amenities at the resort: The exterior of the resort buildings appears to be in good condition, with minimal facade damage and landscaping loss. The pools, beach and pool bar are open (weather permitting). The MarketPlace hours and offerings and resort activities are limited. A temporary check-in area has been set-up in the sales gallery at the resort due to damage in the main lobby. Additionally, remediation efforts are actively underway within the impacted buildings. You should expect to see the resort's disaster recovery contractors and supplies staged around the property. Also, you may experience typical construction noise during normal working hours. Lastly, we would like to advise you that the local area continues to experience some flooding, which has caused sporadic road closures. We strongly encourage all Owners who will be traveling to the resort to check roadway conditions before departing for your upcoming vacation. While progress has been made in terms of preserving the association's assets and restoring normal operations at the resort, a wide-range of restoration work will continue over the next several weeks. As villas are restored for Owner and guest occupancy, we will continue to provide updates on any impacts that this may have on confirmed reservations. Should you be planning to come for Thanksgiving or later, we currently expect to have all villas available for the enjoyment of our Owners and guests. As construction progresses, we will be opening additional villas as quickly as possible. We would like to thank you for your continued support of the management team's efforts through this difficult situation. Thank you, Paul Bishop General Manager Marriott's OceanWatch Villas at Grande Dunes