Tiburon Peninsula Club 2008 Financial Review and a Look Ahead Finance Committee Meeting - February 5, 2009

2008 Overall Review One Giant Step in the right direction… A few more baby steps remain…

Club Financial Underpinnings 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 (maintenance/replacement & new projects)

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

2008 Activity Performance Comparison Activity’08 Net’07Net’08Rev(k)’07Rev(k) Tennis-$7,833-$203,000$564$419 Swim-$8,651-$107,000$258$338 Fitness-$7,010-$83,000$238$70 F&B-$63,764-$14,000$449$326 Youth$4,173 $40,000$187$147

2008 Club Finances Operations - $196,228 Sum of “5” (activities) - $83,085 New Member Initiation $330,000 Capital Improvements - $678,609 Severence/Deferred Comp - $250,000 Loan Proceeds$1,055,000 Sum $177,078 (into Emergency Reserve)

Looking Ahead Operations is set to breakeven – high confidence The Big Five are set to breakeven – 4 of 5 confident The Linchpin for ’09 Finances – New Member Enrollment

New Member Enrollment As of Jan 1, 2009: ActualTPC TargetTown Limit Regular: Senior: approx (formulaic) 175 _________________________________________________ Strategy – Front load the annual enrollment process in order to have some visibility into the performance of the new member list. Its performance dictates Capital Spending. Steps Taken – 50 acceptance letters sent last week (Town Waitlist at 109) Initiation financing option offered (full payment by 12/31/09 req’d) Out of Town Waitlist being vetted – approx 40 names

Estimated Upcoming Capital Ex