Tiburon Peninsula Club 2011 Y EAR E ND F INANCIAL R EVIEW All Committees Meeting – February 7, 2012

Executive Summary  Congratulations on a stellar year  Your efforts are truly appreciated  Let’s do this again in 2012! 1

2011 UNIT P&LS, CASH AND MEMBERSHIP RESULTS BY MONTH 2

Operations / PRE-BONUS About ½ of last year, but a more representative # of future expectations Difficult to budget for (we had a $140,000 delta y/y) Cap Ex should average around $250,000/year 2011 Annual P&L Results by Unit and a 5-Year Comparison Note: Any year-end profits are returned to the respective business units for equipment upgrades and to pay bonuses. There is no carry forward. and how far we’ve come… We owe Jerry, Mike and crew a huge thank you for righting the ship! 3 Again, these are pre-bonus results.

2012 initiation fees will be deposited here first, and then into Funds “C” and “D”. TPC Cash and Reserve Balances (as of December 31, 2011 and pro forma) 4 Funds drawn down to close First Republic Loan and for pre-payment penalties to Bank of Marin. Total Cash and Reserves (as of Feb. 1, 2012) = ~$1.5 million

2011 Membership Review and A Look at What’s Ahead As of December 31, 2011: Regular Members =690 Senior Members = 175 Total Members =865 Annual Dues = $1,837,753 As of January 31, 2012: Regular Members =700 Senior Members =175 Total Members =875 Annual Dues (est.) =$1,944,700 Annual Dues Increase Y/Y = $100, new members admitted in January Conditional Use Permit allows for a total of 700 Regular Members. We are at the limit. We currently budget for 35 new Regular Members annually (5% turnover) – from both resignations and Senior Member conversions. If our estimate is correct, we will generate approximately $525,000 for the Club’s capital expenditures (split roughly 40% for replacement/maintenance and 60% for new projects). Already have 10 new members in For reference, in 2011 we had 30 Regular Membership resignations, 6 Senior conversions, 8 inactives/leaves of absence and 28 new members (~$500k in initiation fees). There is currently an in-town waiting list of 22 families, each who have submitted a 10% non-refundable deposit (i.e. $1,850). 5 The dues increase will help offset increased costs of insurance, utilities and labor

Summary of 2011 Capital Expenditures and Roadmap for – Projects Approved by BOG Tennis (resurfacing, leveling, windscreens):$64,700 Food & Beverage-related enhancements:$10, Cap Ex Summary Clubhouse (largely café improvements):$88,000 Aquatics (concrete and starting blocks):$20,000 Locker Rooms (flooring and carpets):$28,000 Fitness (painting): $3,500 Administration (computers):$14,000 Grounds (fencing, playground, lighting):$79, – Projects Currently Under Consideration ($ estimates) Front Desk Reconfiguration:$30,000 Tennis (lower court fences):$55,000 Outdoor Café Trellis Cover:? Youth Tennis Center Project:? Main Pool Refurbishment:? 6

Terms of our Construction Loan Refinancing with First Republic (and what it means for the TPC) 1 – Loan Amount:reduced from $5,620,000 down to $4,500, Interest Rate:reduced from 6.25% down to 5.35%. 3 -Amortization:reduced from 30 years down to 15 years. 4 -Monthly Nut:roughly equivalent (~$36,000/month) 5 -Prepay Penalty:None LOAN COMPARISON FACTS: WHAT THE NEW LOAN MEANS TO THE TPC: 1 - FOR THIS LOAN, WE WILL BE DEBT-FREE IN 15-YEARS – PERHAPS SOONER. 2 -SAVINGS OF MORE THAN $2,000,000 IN INTEREST PAYMENTS. 3 - WE HAVE GAINED A COMMITTED PARTNER IN FIRST REPUBLIC BANK. - Lead sponsor for TPC Challenger 7

Initiation Fees Dues Non-Member Surcharges Revenues Expenses Aquatics Fitness Food/Bev Tennis Youth Activity Specific Member Charges Non-Member Activity Charges Activity Fee Activities – Set at Operational Breakeven Monthly Debt Retirement Fees Mortgage Personnel/Operations- Aqua Personnel/Operations - Fit Personnel /Operations– F/B Persn/Ops - Tennis Persn/Ops - Youth TPC Comprehensive Financial Model 20% 80% Administration Facility Operations “ A ” - Operating Cash/Checking Acct I “ C ” - Capital Reserve “ Replacement ” $250,000/yr “ B ” - Emergency Reserve Savings Account Half of Year End Balance II “ D ” - Capital Expense (New) Capital Expenses 8