Tiburon Peninsula Club 2013 Annual Meeting

1. Tiburon Peninsula Club 2013 Annual Meeting Financial Review – November 21, 2013

2. 2013 Financial Highlights The TPC finances continue to improve • Cash Position: $1,670,000 (up $300,000 y/y) • Our Cap Ex is below budget ($250k) for third year in a row. • We now have $265,000 in our pool replacement fund • Up from $0 at the beginning of 2012. • Membership: At our Conditional Use Permit (CUP) Capacity • Waitlist is currently at 50 in-town families • Operating Costs: Trending Slightly Higher • Insurance, utilities, labor • Bank:Partnership with First Republic Bank remains solid. • Operations: Aside from the Cafe, all departments are in the black.

3. Café - Loss Run Rate Analysis • 2013 Monthly Low: ($10,943) – September => Annualized: ($131,316) • 2013 Monthly High: ($27,933) – July => Annualized: ($335,196) • 2013 Most recent:($11,546) – October => Annualized: ($138,552) • Since the summer months, losses are stabilizing • Club usage this summer was down significantly due to member travel • Difficult to plan labor schedules and food buying • Main culprits for loss: • Food costs • Labor costs • Service charge removal • Catering

4. 2013 P&L Pre-Bonus Operating Results by Unit (through October 2013) • => Department profits are not carried forward (i.e. zero balance on Jan. 1steach year) • Profits returned to departments for equipment upgrades and bonuses.

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

6. Highlights of 2013 YTD Capital Expenditures • Cap Ex remained below average for the third year in a row • Most expenditures were related to general/deferred maintenance • Projects Completed • Clubhouse • Café redesign consultation services • Clubsoft – management/membership software • Security camera system upgrade • Fencing • Concrete work – sidewalks and stairs • Fitness • TVsystem upgrade • Aquatics • Locker room enhancementin boys/girls rooms

7. 2013 Membership Review • As of October 31, 2013: • Regular Members = 699 (700 is max under CUP) • Senior Members = 175 • Total Members = 874 • Monthly Dues Income = ~$200,000 • YTD Initiation Income = $455,809 • In-Town wait-list at 50 families, each who have submitted a 10% non-refundable deposit (i.e. $1,850). It’s a real list. • We budget for 35 new Regular Members annually (5% turnover or $647,500) – from both resignations and Senior Member conversions. • YTD, 26 new Regular Members ($481,000) have joined the TPC. • Note: some new members are on a 3 month installment plan. • Membership is at capacity due to our conditional use permit (CUP).

8. First Republic Construction Loan Update 1 – Loan Amount: $4,500,000 (current balance = $4,056,810) 2 - Interest Rate: 5.35% 3 - Amortization: 15 years (refinanced in 2011) 4 - Monthly Payment: $37,000/month 5 - Prepay Penalty:In 1st 4 years, we can pay down 20%/year w/out penalty. • Construction loan 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.

9. Final Thoughts • Congratulations to all departments on another exceptional year • Thank you to all volunteer members for your time and effort in making the TPC a great place for family, friends and other members to enjoy • Jerry and Aaron are huge assets to the TPC • On the CapEx front, 2014 will prove to be an exciting year for the TPC. Stay tuned!

10. Addendums

11. Unit P&Ls, Cash and Membership Results by Month(though October 2013)

12. TPC Cash and Reserve Balances (as of October 31, 2013) Funded by initiation fees