Subject: Dues Increase for 2006

Dear Members of Mid Carolina Club:

In our day-to-day lives, we all are faced with increased costs of living expenses. Many of these expenses are directly related to higher energy costs in the form of higher utility bills, increased fuel cost and increased wholesale prices that result from higher delivery charges. Unfortunately, Mid Carolina Club and its day-to-day operations are not immune to these same increases in cost.

The Board of Directors is faced with the challenge of insuring that our Club remains financially stable. With this requirement in mind, the Board conducts monthly reviews of operation reports for each of the departments of the Club. When operating expenses increase, the Board first investigates the source of the increase and determines whether or not adjustments can be made to the operation to reduce or eliminate the expense. Once the Board determines that the expenses are legitimate, the Board then must review and make adjustments to the revenue source to cover the additional expense.

After many hours of review and debate, the Board of Directors has determined that a monthly dues increase will be required for 2006. By copy of this letter and notification through the monthly newsletter, the Board hereby notifies you that beginning January 1, 2006, monthly dues will increase by ten dollars ($10.00). As unpopular as this decision is for all, it is necessary to insure the financial stability of the Club.

The Board of Directors invites you to a meeting at 6:30 p.m. on Wednesday, November 16, 2005 in the Club dining room to address questions that you may have concerning the dues increase or the budget for 2006. Mr. Tim Donovan, Chairman of the Finance Committee will be present to take your questions.

Sincerely,

Andy H. Metts

President, Mid Carolina Club