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WELCOME TO RIPOC’S FIRST TOWN HALL MEETING. FOR THOSE THAT DO NOT KNOW ME, I AM BARRY CLOUGH. WE APPRECTIATE YOU TAKING THE TIME TO COME AND LISTEN TO US TODAY. WE HOPE IT WILL BE INFORMATIVE AND HELP YOU TO UNDERSTAND WHAT RIPOC IS TRYING TO DO TO HELP SECURE OUR LIFESTYLES THAT WE ALL HAVE ENJOYED HERE AT REYNOLDS. WE WANT TO PROVIDE YOU WITH ALL THE INFORMATION POSSIBLE AND ANSWER YOUR QUESTIONS. HERE IS THE AGENDA: I WILL GIVE A BRIEF DISCRIPTION OF RIPOC—WHY IT WAS FORMED AND OUR CURRENT STATUS CHRIS TIERNEY FROM HAYS WILL PROVIDE INSIGHT ON THEIR CAPABLILITIES TO ASSIST US I WILL FOLLOW UP WITH RIPOC PLANS WE WILL TAKE ALL QUESTIONS

LET ME START BY INTRODUCING THE BOARD OF MANAGERS.

RIPOC IS NOT AN OFF SHOOT OF THE COMMITTEE FOR AN INFORMED VOTE. RIPOC WAS STARTED BEFORE THE APRIL 29 VOTE WAS TAKEN TO DISCUSS IDEAS ABOUT A PLAN “B” OR OTHER OPTIONS.

THERE WERE 22 PEOPLE AT THE FIRST MEETING THAT FORMED THE INTERIM STEERING COMMITTEE. FROM APRIL 30 UNTIL TODAY, WE HAVE BEEN MEETING EVERY WEEK. SO WE HAVE PUT A LOT OF EFFORT INTO DEFINING OURSELVES AND CREATING A MEANS TO PROTECT OUR LIFESTYLES.

OUR VERY FIRST OBJECTIVE WAS TO INVOVLE PROPERTY OWNERS IN DETERMINIG OUR STARTEGIES AND PROVIDE US GUIDANCE.IN MAY, WE DID AN ON LINE SURVEY TO ALL THE PROPERTY OWNERS FOR WHICH WE HAD E MAIL ADDRESSES. WE ASKED A NUMBER OF QUESTIONS AND THESE ARE SOME OF THE RESULTS.

THE RECEIVER HAS A FIDUCIARY OBLIGATION TO WORK TO MAXIMIZE THE SALE VALUE OF RP FOR THE BENFIT OF THE BANKS. HE HAS LITTLE TO NO FINANCIAL RISK AT STAKE. ONCE A SALE IS CONSUMMATED, THE RECEIVER WILL BE OUT OF THE PICTURE.

THE BANKS ARE ALSO GONE AFTER THEY RECOOP AS MUCH OF THEIR $200M IN LOANS AS THEY CAN THROUGH THE SALE.

PROPERTY OWNERS ARE IN FOR THE DURATION WITH THE MOST AT RISK AND THE MOST TO PROTECT. WE WOULD ALL LOVE TO GET BACK TO WHERE WE WERE BEFORE THIS WHOLE AFFAIR BEGAN AND ENJOY THIS WONDERFUL PLACE.

BUYER IS IN IT UNTIL ALL THE LAND IS DEVELOPED, OR HE SELLS RP TO SOMEONE ELSE. HIS INTEREST IS MAKING MONEY BY SELLING PROPERTY, NOT RUNNING THE AMENITIES. HIS BIGGEST RISK IS LOSING OUR SUPPORT.

NO ONE KNOWS, WHO WILL END UP OWNING REYNOLDS. THE ULTIMATE OWNER WILL BE SELECTED BASED UPON PRICE AND TIMING.

MOST PEOPLE ASSUME A DEVELOPER WILL BE THE BUYER, BUT THAT MAY NOT BE THE CASE.

WE MUST BE PREPARED FOR ANYONE OF THESE POSSIBILITIES.

GOLF IS DECLINING: 18 HOLE EQUIVALENT ROUNDS DOWN 9% IN 2008 FROM 2000; 1500 TO 2000 SURPLUS COURSES; NEW COURSES WILL LIKELY BE MORE ENVIRONMENTALLY FRIENDLY (CLEMSON STUDY).

EXAMPLES: PGA WEST, FIDDLERS CREEK, BONITA BAY, TPC SAWGRASS, DORAL, AMELIA ISLAND, PALMETTO BLUFFS, DESERT MOUNTAIN, SUPERSTITION MOUNTAIN DISCUSSIONS WITH PGA WEST AND BONITA BAY PGA WEST: 50% REFUND OF INITIATION DEPOSITS + 5% PER YEAR MAXIMUM 5% DUES INCREASE PER YEAR (5YEARS) AMELIA ISLAND EQUITY CLUB (80% REFUND OF DEPOSIT IF DUES FOR 7 YEARS) RESIGNED MEMBERS GIVEN OPTION TO REJOIN AT ONE-TIME BUY-IN FEE OF $1500

CHRIS WILL COVER IN MORE DETAIL SOME OF THEIR SUCCESSES

RIPOC IS THE ONLY ENTITY WITH LEGAL STANDING TO REPRESENT ITS MEMBERS. WE CANNOT WAIT FOR BANKRUPTCY AND THEN FORM A LEGAL ENTITY. TIME WILL HAVE RUN OUT.

IN THE EVENT OF LLDC BANKRUPTCY, OUR GOAL IS TO HAVE A SEAT AT THE TABLE DURING NEGOATIATIONS TO REPRESENT OUR VIEWS. CHRIS WILL COVER THIS IN DETAIL.

IN BANKRUPTCY, IT IS ESSENTIAL TO HAVE A LEGAL ENTITY TO REPRESENT THE LARGEST GROUP OF UNSECURED CREDITORS.

IT WILL DO NO GOOD TO TRY TO CONVINCE THE NEW OWNER OF OUR NEEDS UNLESS WE HAVE THE FULL AUTHORITY FROM THE MEMBERS.

WE NEED ONE VOICE TO THE NEW OWNER TO REPRESENT OUR CONCERNS AND NEEDS.

WE ONLY REPRESENT OUR MEMBERS. THAT IS THE ONLY AUTHORITY WE HAVE. WE ARE MOSTLY FOCUSED ON THE NEW OWNER WHICH WE WILL DISCUSS IN DETAIL.

OUR BYLAWS AND OPERATING AGREEMENT ARE ON OUR WEBSITE. WE HAVE AN ELECTED BOARD OF MANAGERS: 4 “AT LARGE” AND 7 BY GENERAL ELECTION PLANTATION (7), GW (2) AND THE LANDING (2) OUR OBJECTIVE IS TO REPRESENT OUR MEMBERS VIEWS, NOT OUR OWN. WE DO THIS VIA SURVEYS. GENERAL SURVEY SHOWED MOST MEMBERS DID NOT WANT TO OWN THE AMENITIES. HOWEVER, THERE WERE MORE THAN 500 THAT WERE INTERESTED AND MIGHT CONTRIBUTE UP TO $20M TO BUY. MEMBERSHIP ISSUES SURVEY WENT OUT IN AUGUST AND WE WILL SHARE THOSE RESULTS TODAY. WE ARE TRYING TO KEEP MEMBERS COMPLETELY INFORMED THROUGH OUR WEBSITE AT WWW.RIPOC.NET.

HERE ARE THE NUMBERS. WE KNOW THAT IF WE BASED THE NUMBERS ON PROPERTY OWNED, THE 1200 WOULD BE CLOSER TO 1400 OR HIGHER. WE JUST ISSUED OUR EMAIL SOLICITING VOLUNTARY CONTRIBUTIONS TO OUR PROFESSIONAL SERVICES FUND. WE RECOMMEND $250 PER FAMILY. WE WILL HOLD THE MONEY IN TRUST AND RETURN WHAT IS NOT USED ON A PRORATED BASIS. THESE SERVICES WILL ASSIST US IN FORMULATING THE MOST EFFECTIVE STRATGY AND TACTICS WITH A NEW OWNER. WE DO NOT KNOW WHAT THE COSTS WILL BE BUT PGA WEST RAISED $175,000 FROM 800 MEMBERS AT $250. THIS COVERED THEIR LEGAL FEES AND THEY WON THE SETTLEMENT WITH THE OWNER PAYING THE LEGAL FEES. THE ANNUAL DUES ARE FOR MAINTAINING THE WEBSITE AND ANY ONGOING ADMINISTRATIVE COSTS. THE MOST IMPORTANT ASPECT IS THAT WE HAVE THE AUTHORITY TO REPRESENT OUR MEMBERS AND NEGOTIATE FOR THEM.

PITTS CARR REVIEWED ALL THE LLDC LEGAL DOCUMENTS AND PROVIDED A LEGAL OPINION ON WHAT PROPERTY OWNER RIGHTS REALLY ARE IN THIS SITUATION.

WE HAVE ROB WILLIAMSON ON HOLD IN CASE LLDC IS PUT INTO BANKRUPTCY.

WE DO NOT PLAN ON STARTING ANY LITIGATION, BUT ARE PREPARING FOR WHATEVER OCCURS.

CHRIS WILL TALK TO YOU ABOUT THE STRATEGIC ADVICE HAYS CONSULTING IS PROVIDING.

THERE ARE A LOT OF MISPERCEPTIONS ABOUT RIPOC AND WE WOULD LIKE TO DISPEL THEM.

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INTRODUCE CHRIS

CHRIS IS A CERTIFIED FRAUD EXAMINER, SPEAKER AND AUTHOR ON COMMITTEE AND DEBTOR BANKRUPTCY ISSUES, AND HAS SPENT 22 YEARS PROVIDING FINANCIAL, OPERATIONAL AND STRATEGIC CONSULTING SERVICES TO COMPANIES IN AND OUT OF BANKRUPTCY. HE ALSO HAS A VESTED INTEREST IN REYNOLDS AS HIS MOTHER IS A RESIDENT OF THE LANDING.

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THE FIRST POINT IS VERY IMPORTANT. WE NEED TO COME TOGETHER AS MUCH AS POSSIBLE ON WHERE WE WANT OUR COMMUNITY TO GO AND HOW WE SHOULD GET THERE. WE DO NOT NEED FURTHER ANIMOSITY OR TO PORTRAY OURSELVES TO A POTENTAL BUYER AS A GROUP OF DISGRUNTLED PROPERTY OWNERS/MEMBERS. THE NEW BUYER SHOULD BE VIEWED AS OUR ALLY UNLESS THEY DEMONSTRATE OTHERWISE. WITH THE MEMBERSHIP TASK FORCE OF BOG AND RIPOC MEMBERS, WE HAVE THE OPPORTUNITY TO BEGIN TO BRING US TOGETHER. A NEW MEMBERSHIP PLAN IS A KEY COMMUNITY DOCUMENT THAT WILL DETERMINE OUR LIFESTYLES UNDER NEW OWNERSHIP; WE MUST WORK TO GET IT RIGHT. RETURN OF INITIATION DEPOSITS WILL DEPEND ON SEVERAL FACTORS WHICH I WILL COVER IN ANOTHER SLIDE.

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HERE ARE THE HIGHEST PRIORITY CONCERNS IN RANK ORDER FROM OUR RECENT SURVEY. WE ARE REVIEWING THE MEMBERSHIP PLAN REGARDING THESE ISSUES TO DETERMINE WHAT WE ARE THE BEST ALTERNATIVES FOR OUR MEMBERS. ONCE WE HAVE IDENTIFIED THESE, WE WILL SUBMIT THEM TO OUR MEMBERS FOR FURTHER FEEDBACK. BASICALLY, A REJOINING FEE IS A NON STARTER. PEOPLE WOULD GENERALLY LIKE TO SEE DUES BASED ON CLUB FINANCIAL TRANSPARENCY AND A GOVERNANCE COMMITTEE WITH SUBSTANTIAL MEMBER INPUT AND/OR CONTROL, WITH MEANINGFUL INPUT ON DUES (AND ASSESSMENTS) AND COSTS. WE WILL TRY TO PRESERVE INITIATION DEPOSITS TO THE MAXIMUM EXTENT POSSIBLE FOR RESALES, RESIGNED MEMBERS IN THE 7:1 QUEUE, RICHLAND DEPOSITS, AND THE 30-YEAR RULE. CONTRACTS FOR NON-DUES PAYING MEMBERS WILL BE VOID. WE WOULD LIKE TO REDUCE OR ELIMINATE THEIR FUTURE ADVERSE IMPACT ON AMENITY INCOME. TRANSPARENCY OF AMENITY AND OWNER FINANCIALS. LOOK OUT FOR THE FUTURE OF NEW MEMBERS BY PROTECTING THEIR DEPOSITS. GOVERNANCE COMMITTEE TO HELP OWNER WITH AMENITIES, MARKETING OF PROPERTY, PREPARE FOR END OF DEVELOPMENT.

NO NEW OWNER WILL ASSUME LLDC’S LIABILITY TO REFUND INITIATION DEPOSITS. ANY REFUND OF INITIATION DEPOSITS WILL DEPEND ON: 1) NEW OWNER’S GOODWILL, 2) FUTURE STRATEGY FOR NEW MEMBER INITIATION DEPOSITS, AND 3) BEING CONVINCED THAT SOME REFUND POLICY FOR EXISTING MEMBERS IS IN HIS BEST LONG TERM INTERESTS. AN LLDC BANKRUPTCY CONCURRENT WITH THE SALE COULD CHANGE THESE DYNANMICS

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IN SUMMARY,THESE ARE OUR BASIC PLANS. BE PREPARED REGARDLESS OF WHO THE NEW OWNER MIGHT BE—A DEVELOPER, A HEDGE FUND, A PRIVATE EQUITY GROUP, OR ANY COMBINATION. WE KNOW THE MEMBERSHIP PLAN TERMINATES SO WE WANT TO BE PREPARED TO DISCUSS VARIOUS ALTERNATIVES WITH THE NEW OWNER. THE RECEIVER HAS ASKED RIPOC TO JOIN WITH HIM AND THE BOG TO PREPARE A NEW MEMBERSHIP PLAN FOR THE BUYER’S CONSIDERATION. PER OUR LEGAL REVIEW, CURRENT RPOA BYLAWS MAY NOT CONFORM TO GEORGIA LAW ON THE VOTING PROCESS. IN ADDITION, WE BELIEVE NEW BYLAWS SHOULD ALLOW MORE CONTROL BY PROPERTY OWNERS IN NEIGHBORHOODS THAT ARE SUBSTANTIALLY BUILT OUT. WE WANT TO SUPPORT THE NEW OWNER TO BE SUCCESSFUL IN BOTH RUNNING THE AMENITIES AND SELLING PROPERTY. THE LAST POINT IS IMPORTANT: WHATEVER IS NEGOTIATED WITH THE NEW OWNER WILL IMPACT OUR FUTURES AND THE FUTURES OF NEW MEMBERS. WE DO NOT WANT TO GO THROUGH THE SAME NIGHTMARE AGAIN. WE CANNOT JUST THINK ABOUT OUR IMMEDIATE PROBLEM. WE HAVE TO THINK ABOUT THE LONG TERM OUTCOME IN SECURING OUR FUTURES.

THE POST CARD THAT WAS HANDED OUT CAN BE MAILED TO US. IF YOU ARE NOT A RIPOC MEMBER AND WOULD LIKE TO JOIN, PLEASE COMPLETE THE INFORMATION AND MAIL IT. IF YOU ARE ALREADY A MEMBER AND WOULD LIKE TO PROVIDE A REFERRAL OF A FRIEND OR NEIGHBOR WHO IS NOT A MEMBER, PLEASE COMPLETE THE BOTTOM PORTION OF THE CARD. WE WOULD APPRECIATE IT IF ALL MEMBERS GO TO THE WEBSITE AND UPDATE THEIR PROFILE. JUST HIT THE TAB “PROFILE UPDATE”. DONATIONS CAN ALSO BE MAILED TO THE SAME POST OFFICE ADDRESS. IF YOU ARE NOT A MEMBER AND WOULD LIKE TO JOIN, JUST GO TO OUR WEBSITE.

THE PREFERRED WAY FOR NEW MEMBERS TO JOIN RIPOC IS ONLINE THROUGH OUR WEB SITE, WWW.RIPOC.NET. IF YOU DON’T HAVE INTERNET ACCESS, PLEASE CONTACT ONE OF OUR BOARD MEMBERS OR USE THE FORMS THAT ARE BEING PASSED OUT.

THIS IS A SUMMARY OF OUR KEY OBJECTIVES.

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Q & A DISCUSSION: USE MICROPHONE. BOARD MEMBER WILL RESTATE THE QUESTION AND TRY TO ANSWER. WE WILL BE TAKING NOTES OF QUESTIONS AND ANSWERS AND WILL POST TO OUR WEBSITE.