b'C H A P T E RONELetter from Patricia GiddingsWhat is Club Cascadas?DeveloperWhen my late husband, architect Ed Giddings, and I stood onClub Cascadas de Baja is many things to many people.Medano Beach in 1980, we envisioned a resort that became aThe Club is often referred to by members as our home away reality when it opened in 1985 as Club Cascadas de Baja. from home. To those seeking a relaxing vacation, the Club is a resort in a wonderful location on Medano Beach in Cabo San Club Cascadas de Baja indeed, is more than a reality it is theLucas, one of the best beaches in Mexico. To the Clubs 220 or culmination of our dream of having a beautiful 5-star resort so employees, it is a great place to work.inMexico,whereourmembersandguestscanexperiencewonderful vacations in an incredibly pleasurable atmosphere. The Club is a Delaware, non-profit, non-stock corporation,(Cascadas de Baja Association). Instead of shareholders, the Ihavealwayssaidthattherearethreethingssupremely corporationhasmembers;andnopartofitsnetearnings importanttoClubCascadas:Themembers,themembers, mayinuretothebenefitofanymemberorindividual.The andthemembers.Withoutadoubt,themembersmake Board of Directors manages the corporation, and the resort istheClubadelightfullysocialandrelaxingplacetovisitfor operated under a contract with Trading Places International vacations. When the members needs and expectations are met LLC, which is a professional resort management company.and exceeded, the members are happy and return year after year.Cascadas de Baja Association is exempt from federal income The purpose of this Members Information Guide is to bring tax on its membership activities, and it files an annual federal to you, our members, a perspective of the Club that perhapstax return (Form 1120-H) as a homeowners association.is new to some but is well-known to others. After all, it is theCascadas de Baja Association that owns the resort and haveWe call it Club Cascadas, or the Club, or the Association. taken over from the Developer the responsibility to manage the resorts operations. TheMembersofClubCascadas arethosepeoplewho own one or more memberships of the 5,650 vacation intervals.Your Board of Directors and I worked diligently for six years An interval is one week in a specific villa. The Club has 113in anticipation of the turnover of operations, and we want youvillas that are available for use during 50 weeks of the year. our membersto know more about it. Thus, 113 multiplied by 50 equals 5,650 intervals. There areapproximately 3,500 members.Sincerely,23'