Tiburon Peninsula Club 2012 A NNUAL M EETING Financial Review – November 8,

2012 Financial Highlights Financial metrics of the TPC are improving  Our cash position increased $100,000 YTD and now stands at over $1,400,000  Our partnership with First Republic is solid  There are currently over 30 families on the in-town membership wait list  A slight dues increase at the beginning of this year has helped offset a rise in costs of insurance, utilities and labor.  As of now, all operating units are operating in the black 2

2012 P&L Pre-Bonus Operating Results by Unit (through September 2012) Note: Any year-end profits are returned to the respective business units for equipment upgrades and to pay bonuses. There is no carry forward. 3

Running a Tight(er) Ship 4 Total Revenues as a % of Labor Costs Jerry Pang is hired As GM of TPC This is why we have been able to minimize dues increases…

Highlights of 2012 YTD Capital Expenditures Projects Completed Clubhouse (largely café improvements) BBQs 80” Flat Screen New Sound System Upgraded kitchen equipment, flatware, glassware and utensils Tennis (resurfacing, leveling, windscreens, benches) Aquatics (new heater in wading pool) Locker Rooms (flooring and carpets)  Cap Ex remains below norm, but improvements continue 5

2012 Membership Review As of September 30, 2012: Regular Members =699 (700 is max under CUP) Senior Members = 175 Total Members =874 Monthly Dues Income = $198,191 YTD Initiation Income =$424,293  In-Town waiting list of 30 families, each who have submitted a 10% non-refundable deposit (i.e. $1,850).  We budget for 35 new Regular Members annually (5% turnover) – from both resignations and Senior Member conversions.  YTD, 22 new Regular Members have joined the TPC.  We are currently at our membership capacity due to our conditional use permit 6

First Republic Construction Loan Update 1 – Loan Amount:$4,500, Interest Rate:5.35% 3 -Amortization:15 years (refinanced in 2011) 4 -Monthly Payment:$37,000/month 5 -Prepay Penalty:None  Another refinancing was explored in April 2012  BOG determined the terms were not currently in the best interest of the TPC. − Although there were interest rate savings, points and fees pushed out the breakeven to over three years. − We will continue to monitor refinancing opportunities. 7

Café – YTD Financial Performance Sales through September 2012 were $453,000 vs. $540,000 through September 2011 – Café was open two months less this year than last Beer, wine and liquor are down nearly 30% from last year Fitness Area drink and snack sales are down 60% from last year 8

Final Thoughts  Congratulations to all business units on another exceptional year  Volunteer members - Thank you for your time and effort in making the TPC a great place for family, friends and other members to enjoy  2013 will be another great year for the TPC 9

UNIT P&LS, CASH AND MEMBERSHIP RESULTS BY MONTH (THOUGH SEPTEMBER 2012) 10

Funded by initiation fees TPC Cash and Reserve Balances (as of September 30, 2012) CASH BALANCES "A" Operating Cash/Check Acct Balance on Jan. 1, 2012$239, Balance on Sep. 30, 2012$156, Change($83,956.34) "B" Emergency Reserve Savings Balance on Jan. 1, 2012$558, Balance on Sep. 30, 2012$558, Change$ "C" Cap Ex "Replacement" (Ckg) Balance on Jan. 1, 2012$491, Balance on Sep. 30, 2012$534, Change$42, "D" Cap Ex "New" (Savings) Balance on Jan. 1, 2012$40, Balance on Sep. 30, 2012$40, Change$5.02 "E" Cap Ex "Swimming Pool" (Savings) Balance on Jan. 1, 2012$0.00 Balance on Sep. 30, 2012$125, Change$125, Total Cash Balance as of Sept. 30, 2012:$1,414,

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