GOOD NEWS…I have conquered my fear of port-o-lets.

BAD NEWS…It can still happen to you:

Good Bad Ugly

Tiburon Peninsula Club

2012 YEAR END FINANCIAL REVIEW

All Committees Meeting – February 5, 2013

(unaudited results)

1

Our cash position increased over $200,000 in 2012 and now stands at ~$1,550,000.

There are currently over 30 families on the in-town membership wait list.

A slight dues increase at the beginning of 2012 helped offset a rise in the cost of insurance, utilities and labor.

Our financial partnership with First Republic is solid as demonstrated by their increased support at this year’s TPC Challenger event.

2012 Financial Highlights

Almost identical to last year

Cap Ex will increase this year due to a variety of planned projects and upgrades to the facilities

2012 Annual P&L Results by Unit – PRE-BONUS

Note: Any year-end profits are returned to the respective business units for equipment upgrades and to pay bonuses. There is no carry forward.

We upgraded equipment and purchased new flatwareand utensils

Not black, but deserves a shout-out

2

Our goal is to fund this account with anadditional $150,000/year from initiation fees

TPC Cash and Reserve Balances(as of December 31, 2012 - unadited)

We like to keep about 3 months of operational expenses on reserve. And, itshould be noted that we self-insure forforce majeure events (i.e. earthquakes)

Total cash and reserves increased approximately $240,000 during 2012.

3

Highlights of 2012 Capital Expenditures

Completed in 2012 – a bunch of smaller projects

Clubhouse (largely café improvements) BBQs Added an 80” Flat Screen TV New Sound System and improved wifi installed 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 was below norm last year, but will increase in 2013

4

2012 Membership Review

As of December 31, 2012:

Regular Members = 695 (700 is max under CUP) Senior Members = 175 Total Members = 870

Monthly Dues Income = $198,450 (covers operations)

YTD Initiation Income = $515,000 (used for Cap Ex projects)

Our in-town wait-list exceeds 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.

In 2012, we admitted 31 new Regular Members. At the beginning of 2013, we had room to add 5 new Regular Members under our conditional use permit.

5

Running a Tight(er) Ship

2007 2008 2009 2010 2011 201230%

35%

40%

45%

50%

55%

60%

65%

70%

75%

80%

Labor Costsas a % ofTotal Revenues

Jerry Pang is hired as GM of TPC

This is why we have been able to minimize dues increases…

6

Closing Remarks

7

Congratulations to all business units on another exceptional year

Volunteer Committee Members and BOG - Thank you for your time and effort in making the TPC a great place for family, friends and other members to enjoy

Let’s keep the momentum going in 2013!

Addendums

2012 UNIT P&LS, CASH AND MEMBERSHIP RESULTS BY MONTH

i

First Republic Construction Loan Update

1 – Loan Amount: $4,500,000

2 - 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.

ii

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

iii