Fourth AnnualInformational Meeting

November 5, 2009Los Cabos

I. Resort Operations and Maintenance UpdateII. Outsourcing of Accounting FunctionIII. Resale and Rental Results SummaryIV. Owner Beneficiary Interest Certificate UpdateV. 2009 Year to Date Financial ResultsVI. 2010 Preliminary BudgetVII. Election of 2010 Interim Advisory Board VIII. Questions and Answers

Agenda

IntroductionsRaintree Brian Tucker Senior Vice President HoustonJosefina Buendia Member Services Los CabosRafael Garcia Member Services Los Cabos

Starwood Shawn O’Brien Director, Board Relations OrlandoPablo Flores General Manager Los CabosVeronica Huerta Operations Manager Los Cabos

Gossler German Argueso Accountant Los Cabos

GENERAL/PERSONNEL

• Management Action Plans. Implementation of MAP in all departments in order to detect, anticipate and solve issues/problems quickly and effectively.

• Departmental Promotions: Permanent training programs have led to the promotion of 6 associates: 2 pool concierges, guest services coordinador, front desk agent, security agent and housekeeping.

• Charitable Activities. In December 2008, all staff donated toys for the needy children. In June, several items that were no longer in use, including linens & kitchen supplies, were donated to the local family care bureau (DIF)

• Monthly Recognition of Associates. A monthly meeting has been established to celebrate employee’s birthdays and to announce the associate & supervisor of the month, as well as associate’s promotions.

• FOR NOVEMBER & DECEMBER: 1) New staff uniforms. 2) IT: Band Width will improve internet service; wireless internet in villas will have more speed & stability.

Resort Operations & Maintenance

FOOD & BEVERAGE

• Additional 5% discount for owners. In February, an additional discount of 5% was applied to the exisiting 15% off, so now owners have a 20% discount at The Westin & Grand Regina Restaurants.

• Happy Hour on sunset. In February, Happy Hour was re-established, available at El Ciruelo Terrace Lounge according to sunset schedule.

• New Menu at “El Cielo”. In June, “El Cielo” introduced a new & refreshing menu, including traditional dishes from La Baja.

• Full repair and maintenance of wooden chairs & tables of “El Cielo” + upholstery of high chairs.

• FOR NOVEMBER & DECEMBER: New menu for El Ciruelo.

Resort Operations & Maintenance

GUEST AMENITIES

• Refreshing amenities for guests at the Pools. As a courtesy, starting July, we are offering a small refreshing amenity at the pools, either a margarita, a fruit brochette or mini popsicles

• Added services at the Gym. In July, Spa rooms were partially opened for owners (except hydromassage tubes and sauna)

• Personalized Check in for Owners directly at the villas.

• Improved tracking of Red Alert system

Resort Operations & Maintenance

HOUSEKEEPING

• Replacement of pots and pans in all villas.

• Kitchen inventory card for all villas (master & double bed).

• New kitchen appliances: pyrex cookware, paper tower holder

• Cleaning machine for deep cleaning of mattresses, curtains & cushions on units. It also helps deep cleaning wooden floors at jacuzzis and double bed units terraces.

• Presentation card of the maid that will be in charge of housekeeping during guest’s stay.

• FOR NOVEMBER & DECEMBER. 1) New cushions will be placed in both armchairs of master living room 2) Replacement of cushions for Jacuzzi area furniture. 3) New bath amenities line “TEVA”.

Resort Operations & Maintenance

MAINTENANCE

• Bad odor in units & walkways. Since January, bad smell problem was solved by applying “Cultibac Nolor” on a constant basis, especially on RC1, RC5, RC6, RC7 & RC8. Product was also applied in all guest restrooms, pools & restaurant.

• Protection in main entrance. In March, 12 additional concrete bollards were built on main property entrance in order to provide more protection.

• Major Repairs to Adult & Family pools. From August to September, several cracks in pools were repaired by SVO, solving major filtering, drain & design problems.

• Wooden floors on pool areas & metal handrails. Permanent maintenace program for all wooden floors located on pools, kids pool & terrace lounge.

• Lighting. Specially on stairways for security and safety.

• Main entrance door. Ongoing program to repair wooden doors on villas.

Resort Operations & Maintenance

MAINTENANCE

• Continuous wood pergolas maintenance.

• Set up of an aluminum door on substation for garbage storage & employee access.

• Renewal & continuous maintenance programs, for example Jacuzzi repairs,

shower station repair on the beach access.

• Diverse and thorough repairs & maintenance for lower & adult pool such as: masts located at living room area, polishing & brightening metal handrails and renewal of all mattresses & cushion covers at the adult pool.

• FOR NOVEMBER & DECEMBER: 1) Maintenance works on reflection pools located at the terrace lounge. 2) Maintenance works on motor lobby fountain (applying a new product to avoid salt & tartar. 3) Repair of leakings caused by rain & hurricane on units, commercial & master common. 4) Ongoing repairs & maintenace on wooden floors at unit. 5) Repairs & maintenance of main entrance wooden door, frame & small lids. 5) Repairs & maintenance of metal handrails

Resort Operations & Maintenance

MAINTENANCE

• Wood floor in certain units. We had previously repaired 7 villas wood floors (restroom, master & jacuzzi terrace), mostly located in Phase II. The repaired floors are now scratched again.

Two options to “re-fix”1) Refinish with more effective method US$ 40,0002) Replace wood with stone US$163,000

Resort Operations & Maintenance

PUBLIC AREAS

• In order to improve the image of the property: trimming of 52 palm trees • Renewal of gardens & green areas by using the typical local flora. In addition,

brickworks have been performed in gardens to avoid sand spill

• Trash can maintenance

Accounting Transferred to Gossler

Prepare, review and report financial results

Review Starwood invoices and instruct Trustee to pay Starwood

Instruct Trustee to pay expenses not included in Starwood invoice

Prepare budget for review and approval at Owners Meeting

Host quarterly conference calls with the Administrator, the Resort Operator and the Advisory Board

Attend the annual Owners Meeting

Fee: US$1,000 per month

Rental Programs

Resort Link (RCI Subsidiary)2009 very little activity.

Internal ProgramSteady pace of approximately 5 rentals per monthSeveral repeat customers (should be prospects for resale

program)

Rental Programs

Rental Program 2009

Weeks not rented banked into

Registry5%

Weeks to rent16%

External RentalProgram

2%

Weeks Rented IRP42%

Weeks not rented19%

Weeks not rentedused by owners

16%

Of the 124 weeks deposited to the rental program, 52 have been successfully rented. Rental rate average was US$ 3,820 / week or US$ 545 / day.

Rental Programs

The 52 weeks rented by Grand Regina came from the following sources:

Weeks Renter 5 RVC Members 8 Repeat Customers

2 Starwood 6 PRC Owners16 Website

15 Other / Unknown

Resale Program

Results

10 weeks sold in 2009

Still very slow at all fractional resorts

Previously Announced Gilbert Resale Program

OverviewJoint venture with local fractional resale experts (incl. Mike Buckhalter)Would utilize the multipurpose room down by the lower poolWould generate tours off-site and from Raintree Vacation Club

2009/2010 Efforts CancelledRisks associated with potential low tour flowRVC inability to commit to a minimum number of tours

2010/2011 EffortsGilbert has indicated his intent to establish a resale program for next

seasonWill be designed such that reliance on RVC tours is minimal

Ownership CertificatesCertificates to be issued in December of 2009 if:

1. Tax issues with the San Jose del Cabo Catastro office are resolved on or before November 13

2. Master and Sub-Condo documents are filed and registered by November 13

3. Foreign Affairs Ministry permit is secured by November 20

4. 32 individual unit trusts are finalized and filed by November 27 (This step is dependent on receipt of PRC owner information – so please return in a timely manner)

Financial ResultsEstimated 2009 Full Year

Preliminary D

raft Subject t

o Change

Financial ResultsEstimated 2009 Full Year

Preliminary D

raft Subject t

o Change

FinancialsEstimated Balance Sheet at December 31, 2009

Preliminary D

raft Subject t

o Change

2010 Budget

Preliminary D

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o Change

2010 Budget

Preliminary D

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o Change

IV. Interim Advisory BoardSoon after this meeting, we will request nominations for the 2010 Advisory Board.

• The current IAB board will select three members to remain as board members for continuity purposes.

• A nomination form will be sent via email soon after this meeting with ballots mailed shortly thereafter.

V. Questions and Answers