Bankruptcy Settlement Agreement

LA QUINTA, California, June 17, 2011 — On June 7, 2011, under their authority as the owners and operators of The Citrus Club at La Quinta Resort & The Club at PGA WEST, MSR Resort Golf Course LLC and its affiliated debtors in Chapter 11 (the “Debtors”) submitted a motion to the United States Bankruptcy Court seeking approval of a settlement agreement with the members of The Citrus Club and The Club at PGA WEST.

On February 1, 2011, the Debtors commenced Chapter 11 cases in order to carry out a financial restructuring. In connection with that financial restructuring, the proposed settlement agreement with members provides for, among other things, certain new benefits to members and for the restructuring of the timing and payment of certain membership deposits.

“We are excited to reach a consensual agreement with our members as the Debtors proceed with their financial restructuring,” said Michael Kelly, Executive Director at PGA WEST and The Citrus Club. Mr. Kelly added, “This settlement will support the Clubs’ future success and ability to continue providing existing and new members the unique benefits of our world-class golf and resort facilities.”

The Debtors’ Chapter 11 cases are pending in the United States Bankruptcy Court for the Southern District of New York. The hearing on the motion to approve the settlement agreement will be held before the Honorable Sean H. Lane, United States Bankruptcy Judge, United States Bankruptcy Court for the Southern District of New York, One Bowling Green, Courtroom No. 701, New York, New York 10004 1408 on June 28, 2011, at 2:00 p.m., prevailing Eastern Time.

For access to the motion, other court documents, and general information about the Chapter 11 cases, please visit www.kccllc.net/msresort/. A copy of the motion, including a description of the terms of the settlement agreement, is available at document number 378, and a copy of the notice of the hearing on the motion is available at document number 385.

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