Rules and Regulations Of Mountain Retreat Subdivision

The following Rules and Regulations have been established for the benefit of all Owners.

All of these Rules and Regulations are subordinate to the Declaration of covenants, Conditions and Restrictions of Mountain Retreat subdivision, and, in the event there is a conflict between the Declaration of the Rules and Regulations, the Declaration shall control. The terms used herein, which are defined terms of the Declaration, shall have the same meaning as set fourth in the Declaration.

The Mountain Retreat Homeowners Association has the authority to amend the Rules and Regulations in order to enhance the value, enjoyment and desirability of the Project.

Your failure to abide by these Rules and Regulations of the Declaration may result in suspension of your rights and privileges as an Owner including, without limitation, non-acceptance of future reservation requests.

For each Timeshare Estate owned, an owner may request a reservation for occupancy of his unit, during his season, for one Use-Week commencing on Check-In-Time (4:00 p.m.) on a Saturday and ending on Check-Out-Time (10:00 a.m.) on the following Saturday.

Reservation requests for a Use-Week within an Owners Season shall be honored as follows:

(1) Silver season reservation requests shall be honored on first-come/first-serve basis, and shall be received by the Association no earlier than the fourteenth (14th) Saturday of the prior Use-Year and no later than September 30th of the prior Use-Year. For one unreserved Use-Week within the Silver Season each unit shall be available to the Association for the annual cleaning, maintenance, and repair. After the close and proceeding regular reservation period, the Association shall schedule such annual Service Period. Reservation requests not received within the regular reservation period shall be deemed untimely but, shall, subject to Declaration sub article 2.2.2.2 and the prior scheduling of the annual Service Period, be honored on a first-come/first-serve basis after reservation requests received within the regular reservation period have been honored.

(2) Gold season reservations requests shall be honored on a first-come/first-serve basis. The one exception is for Owners who did not reserve a Rotating Gold Subseason Use-Week in the previous Use-Year shall have priority for reserving a Rotating Gold Subseason Use-Week over the Owners who reserved a Rotating Gold Subseason Use-Week in the previous Use-Year. Gold season reservation requests shall be received by the Association no earlier than the sixteenth (16th) Saturday of the prior Use-Year and no later then December 31st of the prior Use-Year.

Rotating gold subseason reservation requests shall be submitted by owners who have priority (by reason of not having reserved a Rotating Gold Subseason Use-Week in the previous Use-Year) no earlier than the sixteenth (16th) Saturday of the prior Use-Year and no later than December 31st of the prior Use-Year (or priority shall be lost).

During the Use-Years of 1983, 1988, 1994, 2000, 2005, and subsequent Use-Year that has fifty-three (53) Use-Weeks, the gold season shall have an extra Use-Week. During such Use-Years, for one unreserved Use-Week within the gold season, each unit shall be available to the Association for cleaning, maintenance, and repair. After the close of the preceding regular reservation period the Association shall schedule such untimely but shall, subject to Declaration subarticle 2.2.2.2 and the prior scheduling of the above Service Period, be honored on a first-come/first-serve basis after reservations request received within the regular reservation period have been honored.

Reservations shall be made in person or by mail at the following address:

MOUNTAIN RETREAT INCORPORATED

P.O. Box 178

San Ramon, CA 94583-0178

Once confirmed, if a reservation is canceled, the owner canceling such reservation shall be deemed to have used the entire Use-Week for which the reservation was made, unless another owner reserved the Unit so reserved by such Owner for such Use-Week is available to that Owner in the remainder of the Use-Year. No Owner shall be entitled to use his Unit for more than one Use-Week per Use-Year for each timeshare estate owned. If a Use-Week is not reserved or used in any Use-Year, there shall be any accrual or carry- over to any other Use-Year.

Declarant's right to rent Use-Week for his own account shall be conditioned as provided in Declaration subarticle 2.2.2.2.

Check-In time shall commerce at 4:00 p.m. Saturday and Check-Out time shall be at 10:00 a.m. the following Saturday. No owner will be allowed to remain in his unit after the Check-Out time, unless the Owner has confirmed reservations for consecutive Use-Weeks. Check-In and Check-Out must be made at the Manager's office located in the Recreation Center.

The 6-hour period from 10:00 a.m. (Check-Out time) until 4:00 p.m., between each Use-Week shall be reserved exclusively as a weekly service period, during which time each Unit will be cleaned and any necessary repairs or maintenance will be performed by the housekeeping and/or maintenance staffs, under the direction of the Association.

If a timeshare owner or permitted user fails to vacate his unit at the end of his Use-Week, such failure to vacate may result in the severe consequences set forth in the Declaration.

All owners, guests, or RCI members are responsible for any damage done to the unit and it's furnishings other than normal wear and tear. Any unpaid charges for damage or loss will be added to the bill at Check-Out Time or will be billed directly to you. Non-Payment for such a charge will be cause for suspension or use rights until such charge has been paid. You should report any damage or deterioration to your unit or it's common furnishings to the Manager. All owners, guests, or RCI members shall be responsible for removing all their personal property from their Unit at Check-Out time.

No owner, guest, or RCI member shall permit any structural changes, reorganization, or removal of furniture, wall hangings, floor coverings, or redecorating of any type within the Units or other areas of the Project.

During the service between each Use-Week, the manager will conduct a complete inventory of interior furnishings and equipment allocated in each Unit. Missing or damaged items will be charged to the owner who just vacated that unit, or whose permitted user just vacated the unit. An accounting of the missing or damaged items and a bill will be sent by the manager to the appropriate party. An inventory of interior furnishings or equipment is posted in the unit for reference. Within two hours of Check-In time, the Owner or permitted user shall report any missing or damaged items to the Manager. Failure to do so may result in the owner being assessed for such damaged or missing items.

The manager is provided with a master combination to the locks of all Units. In case of emergency, the manager or his employee may enter a Unit, and, in such case, shall notify the occupant, as soon as reasonably possible, or the reason for such entry.

No dangerous or unlawful substance may be kept or used on the premises. Obnoxious, unlawful, or offensive activities are prohibited. The association reserves the right to establish specific rules governing such potentially loud or disturbing activities as use of musical instruments, hi-fi equipment, or late evening entertaining, and if it determines that there is a need to do so in the best interest of all the Owners. No animals or pets of ant kind may be brought on to the project except seeing-eye dogs.

The manager shall not be responsible for any belongings left by an Owner, Guest, or RCI member at the expiration of the Use-Week. No Owner, Guest, or RCI member may keep personal property on the premises other than within their designated Unit during their stay. Automobiles, shall only be parked in the occupied unit's authorized parking space.

Parents shall be responsible for the conduct of their children. Children will not be permitted to play in corridors, parking areas, the lobby, or any other common areas, except for those areas of the Recreation Center designated for their entertainment.

Use of the Recreation Center is subject to the hours and rules set by the manager which is posted in the Recreation Center. Use of the facilities is solely at the risk of the user. No lifeguard or attendant will be provided.

The maximum occupancy of the various units is 8 people. No exceptions.

An owner may lend his reserved Use-Week to others without charge and may invite guests to share occupancy of his unit during his Use-Week, provided that maximum allowed occupancy limits are not exceeded. The manager will not give access to any unit without written permission from the Owner in whose name there is a confirmed reservation. If you intend for a guest to use your reserved Use-Week, you must inform the Manager in writing prior to the first day of the Use-Week reserved. Please indicate the name(s) and address(s) of your guest(s). Upon check-in, guests will be required to show proof of identification, and complete and sign a registration card.

The Association has adopted these Rules and Regulations governing the operation and Management of the project, subject to the provisions of the Declaration, the Association reserves the right to make such changes to the Rules and Regulations as it shall determine, in its sole discretion. Owners, guests, and RCI members agree that they will abide by such rules and Regulations and will cooperate with the Association in securing compliance with these Rules and Regulations. The current Rules and Regulations are posted in the Recreation Center.