Tiburon Peninsula Club 2009 Annual Member Meeting Financial Review November 12, 2009

Overall Review Financially… The Club performed extraordinarily well in an extraordinarily poor economic environment

TPC’s Financial Model – A Review Two Major Constraints: Membership roll limited by Town of Tiburon (700/175) TPC is a multi-activity club (about 1/3,1/3,1/3 as it turns out) Operating Assumptions: Dues pay for operations only Activities are financially self-sufficient (Tennis, Swim, Fitness, F&B, Youth) An Emergency Reserve Savings Account is maintained (set at 2 months or oper. expenses = $370,000) Capital Replacement funds are reserved annually (reserves for depreciation) New member initiation $ pay for capital expenses and debt reduction

Initiation Fees Dues Non-Member Surcharges Cap-Ex and Debt Retirement Revenues Expenses Administration Facility Operations 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 Payments Personnel/Operations- Aqua Personnel/Operations - Fit Personnel /Operations– F/B Personnel/Operations - Tennis Personnel/Operations - Youth TPC - Strategic Financial Model 20% 80%

TPC - Tactical Financial Model Initiation Fees Dues Non-Member Surcharges Cap-Ex and Debt Retirement Administration Facility Operations Monthly Debt Retirement Fees Mortgage Payments Reserve Savings Account (2 mos. of Ops Expense) Cap Ex Cash/Checking Acct Operating Cash/Checking Acct Code RED – An unexpected event wipes out Reserve Account – immediate member assessment is considered Code Orange – Reserve Savings Account is Not Full; All Initiation Fees Flow into Reserve Savings until Full + Examine Expense Cuts + Consider Dues Increase Code Green – Reserve Savings is full; all initiation goes toward Capital Expenses & Debt Retirement. 0% of the time 20% of the time 80% of the time * Currently 2 months of Op Expense = $370,000 Operating Condition “Code”

TPC – Capital Reserve and Accelerated Debt Retirement Initiation Fees $495,000 I Capital Reserve “Replacement” $250,000/yr Reserve Savings Account (2 mos. of Ops Expense) Cap Ex Cash/Checking Acct Assume Membership “roll” – 33 members/yr at “steady state” Gross Initiation Fees non-refundable fee) - $495,000 II Cap-Ex New Projects $245,000/yr Mortgage Debt Retirement I.To meet upkeep and replacement demands II.To fund “new” Cap Ex projects In the event of a slow new membership period, I. has preference to II. by 2:1 until $250k is deposited into I. At the end of every year – one half of I and II balances will be applied to mortgage prepayment. Half of Year End Balance

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 Operating Cash/Checking Acct I Capital Reserve “Replacement” $250,000/yr Emergency Reserve Savings Account (2 mos. of Ops Expense) Half of Year End Balance II Capital Expense New Capital Expenses

2009 Activity Performance Comparison

2009 Club Finances

Looking Ahead Operations are set to breakeven without a dues increase – high confidence The Big Five are set to breakeven – 4 of 5 confident The Linchpin for ’10 Finances – Senior Conversion and New Member Enrollment