WRG OwnerRental Contracts Master-Revised05042020

WELK RESORTS OWNER RENTAL LISTING AGREEMENT

©2018. Welk Resorts Group, Inc. _________ / __________ 1 Owner Initials Co-Owner Initails

Welk Resorts Owner, Thank you for your interest in the Welk Resorts Vacation Rentals Owner Rental Program. We are pleased to offer this program to owners who cannot use all or a portion of their reservation(s) at the Welk Resort’s San Diego, Palm Springs, Timber Ridge Lodges, Cabo San Lucas, Breckenridge, Northstar Lodge and One Village Place.

You must have an existing reservation to place your timeshare use period (“Interval”) into rental. Contact the Owner Services Department at 1-800-240-9342 if you do not already have a fixed week or a reservation confirmation number.

PERTINENT INFORMATION:

Rental rates are established by Welk Resorts Vacation Rentals, Inc. in its sole discretion based in part on season, demand, availability, market rates in surrounding areas for comparable accommodations.

Villas are offered on a nightly basis; not on a full week basis.

There is no guarantee that we will be able to rent one or more nights of your Interval.

Platinum Rewards Owners that have expanded reservation windows may not place into rental reservations made more than 15 months in advance of their check-in date.

We do not accept reservations into rental less than 60 days in advance of the check-in date.

Please submit this completed Rental Listing Agreement via fax or USPS mail only.

Confirm receipt: One week after submitting your Rental Listing Agreement, please call or e-mail to confirm that Welk Resorts Vacation Rentals received your Agreement and is offering your reserved Use Period for rental (please include a self-addressed stamped envelope to receive a copy by mail).

Guests can cancel more than 72 hours prior to their arrival date.

Rental priority is given to inventory owned by Welk Resort Group, Inc. (the “Developer”).

If your Use Period remains unrented less than 7 days before the check-in date, nights within your Interval may be rented by the Developer or its affiliates at a reduced rate for marketing purposes.

In the event your Interval does not rent, you can reserve any portion of your time that has not been rented for a cleaning fee. Once the reservation has passed, the unused time is no longer available. If you decide to use any nights that are not rented, you must first contact us Monday – Friday between 10 a.m. – 3 p.m. (PST), except holidays, to verify that your unit is still available.

Once an Interval is submitted for rental purposes, points will not be reallocated into the Owner’s Platinum account.

ALL VILLAS ARE UNASSIGNED WHEN PLACED INTO THE RENTAL PROGAM. You will not be re-assigned to a fixed villa for nights that have not rented.

Payment: Checks are made payable to the PRIMARY Owner only and mailed on or about 30 days following the end of the Use Period.

A signature is required at the end of this agreement. Additionally, please initial the bottom of each page and include a copy of each page when submitting. Failure to do so will result in your submission being declined. You may contact our office Monday through Friday, from 10am to 3pm (PST/PDT) via phoning 760.749.7485, via fax to 760.651.3699 or emailing [email protected]. When writing to us, please address your correspondence to: Welk Resorts Vacation Rentals, Inc., 300 Rancheros Drive, Suite 450, San Marcos, CA 92069.



THIS AGREEMENT CONTAINS A DISPUTE RESOLUTION CLAUSE THAT AFFECTS YOUR LEGAL RIGHTS

This Rental Listing (“Agreement”) is entered into on this __ day of ________________, 20______, by and between WELK RESORTS VACATION RENTALS, INC. (“AGENT”) whose address is 300 Rancheros Drive, Suite 450, San Marcos, CA 92069, and telephone number is (760) 749-7485, and ________________________________________________________________________ ________________________ Primary Owners Legal First and Last Name Phone Number ______________________________________________________________________________________________________________ Street Address City State Zip Code

RECITALS

A. OWNER OWNS AND DESIRES TO LIST FOR RENTAL A TIMESHARE “INTERVAL” IN THE:

Welk Resorts San Diego 8860 Lawrence Welk Drive, Escondido, CA 92026 (“the resort”) □ Lawrence Welk Resort Villas □ Two Bedroom Villa or □ Fixed Week #: ___________ and Villa #: _________ □ Villas on the Greens □ One Bedroom Suite □ One Bedroom Villa □ Riviera □ Mountain Villas □ One Bedroom Suite □ One Bedroom Villa □ Two Bedroom □ Three Bedroom

Welk Resorts Palm Springs (Desert Oasis) 34567 Cathedral Canyon Drive, Cathedral City, CA 92234 (“the resort”)

□ One Bedroom Villa

Welk Resorts Timber Ridge Lodges 1984 Highway 165, Branson, MO 65616 (“the resort”) □ One Bedroom Suite □ One Bedroom Villa □ Two Bedroom □ Three Bedroom Welk Resorts Sirena Del Mar, Cabo San Lucas Ctra Transpeninsular Km 4.5, Cabo San Lucas, Baja California Sur 23410, Mexico (“the resort”)

□ One Bedroom Suite □ One Bedroom Villa □ Penthouse Welk Resorts Northstar Lodge 970 Northstar Drive, Truckee, CA 96161 (“the resort”) □ Studio □ Two Bedroom Villa □ Two Bedroom w/ Den Villa □ Three Bedroom Villa



One Village Place by Welk Resorts 9001 Northstar Drive, Truckee, CA 96161 (“the resort”)

□ One Bedroom Villa □ Two Bedroom Villa □ Three Bedroom Villa Welk Resorts Breckenridge (The Ranahan) 639 Shores Lane, Breckenridge, CO, 80424 (“the resort”)

□ One Bedroom Suite □ One Bedroom Villa □ Two Bedroom Villa El Corazon de Santa Fe by Welk Resorts 103 Canton Street, Santa Fe, NM 87501 (“the resort”)

□ Two Bedroom Villa, Small □ Two Bedroom Villa, Large

Any two bedroom “lock-off” configuration is split and rented as two separate units: a One Bedroom Suite and One Bedroom Villa. Villas are unassigned when converted to rental to best facilitate the first-in / first-out basis process. OWNER may not be re-assigned to OWNER’S fixed villa number if reserving any portion of time that has not rented.

B. OWNER’S INTERVAL INCLUDES: the right to use a unit at the Resort during the calendar year.

(“YEAR IN RENTAL”)

OWNER has confirmed reservation(s) with ARRIVAL DATE(S) and CONFIRAMATION(S) for rental purposes:

_____________ _______________ _______________ _______________ Confirmation Arrival Date Confirmation Arrival Date



C. OWNER GRANTS AGENT THE EXCLUSIVE RIGHT TO RENT OWNER’S USE PERIOD(S) FOR THE YEAR, PURSUANT TO THE TERMS OF THIS AGREEMENT. AGENT MAY MAKE ANY CHANGES NECESSARY TO VILLA CONFIGURATIONS TO FACILITATE RENTAL REQUESTS. ONCE OWNER ENTERS INTO THIS RENTAL AGREEMENT, OWNER CANNOT MODIFY OR CANCEL HIS/HER RESERVATION. ONCE A RESERVATION HAS BEEN MADE AND CONTRACTED, NO DATE OR VILLA CONFIGURATION CHANGE(S) MAY BE MADE BY OWNER.

D. PROGRAM LIMITATIONS. OWNER agrees and understands that the AGENT limits the number of INTERVALS deposited into the program to one (1) INTERVAL during the YEAR over any INTERVAL that includes a Federal or Local holiday, observed by any government, not limited to or excluding, local, state and federal government, of the United States of America and/or the respectful country in which the RESORT resides and completes business in. In addition, the AGENT has the right to decline additional INTERVALS by the OWNER into the program for any reason, regardless of any predetermined reason. The AGENT fully reserves the right to decline any submitted agreement, without reason or explanation.

E. EXCLUSIVE AGENT. OWNER agrees to an exclusive agency relationship with AGENT. AGENT will attempt to rent the

OWNERS’ INTERVAL for the YEAR. AGENT may rent to any persons including, but not limited to, owners, exchange users, Welk Resort Group, Inc. and its affiliates, and the general public. Said rental period may be for one or more of the nights within OWNER’s INTERVAL.



F. OWNER’S USE OF INTERVAL. OWNER hereby relinquishes the right to use, or in any way encumber (other than purchase

money financing) the INTERVAL during the YEAR, and makes the following representations and warranties;

(a) OWNER has not and will not occupy the Use Period during the YEAR. (b) OWNER has not and will not gift the Use Period during the YEAR. (c) OWNER has not and will not list or “bank” the Use Period with any other rental AGENT, or similar organization, or

otherwise encumber the INTERVAL during the YEAR. (d) OWNER has paid any and all maintenance fees for the YEAR.

G. RENTAL RATES. AGENT will set rental rates at AGENT’s absolute and sole discretion. In addition to the rental rates, AGENT may charge fees, which fees shall be retained by AGENT to defray additional expenses.

H. COLLECTION OF RENT AND FEES. OWNER shall not be responsible for collection of rent from the renter. AGENT will

be responsible for collection of all sums due from renter. In the event that AGENT is unable to collect rent or other sums due, then AGENT shall exercise collection efforts in its sole discretion, which may be terminated at any time at the sole discretion of AGENT. AGENT shall have no liability to OWNER for uncollected rents.

I. NO GUARANTEE OF RENTAL. While AGENT will attempt to obtain renters, this Agreement does not constitute a warranty

or guarantee that AGENT will rent one or more nights in OWNER’s INTERVAL in the YEAR. J. DEDUCTIONS FROM RENTAL PROCEEDS.

1. AGENTS FEES. OWNER hereby expressly authorizes AGENT to deduct forty percent (40%) of the rents received, which shall be payable to AGENT.

2. CLEANING SURCHARGES. The RESORT will impose a cleaning surcharge after the 4th day. Fees will vary by room type and property. OWNER understands and agrees that should the RESORT impose a cleaning fee, AGENT may deduct from OWNER’s portion of the rental proceeds.

3. CREDIT CARD SURCHARGES. OWNER assumes responsibility for credit card surcharge of approximately 3%, and specifically authorizes AGENT to deduct such surcharges, if applicable, from OWNER’s portion of the rental proceeds.

4. OUTSIDE AGENCY COMMISSIONS. In the event that AGENT utilizes a travel AGENT or other sub AGENT, OWNER authorizes AGENT to pay commissions at a rate of approximately 10%. Such commission, if paid, shall be in addition to fees described herein, and shall be deducted by AGENT from OWNER’s portion of the rental proceeds.

K. DELINQUENT PAYMENTS. If OWNER is delinquent in payment of any debt related to the INTERVAL, AGENT may pay such delinquent amounts from OWNER’s portion of the rental proceeds, up to and including the entire amount due OWNER pursuant to this Agreement.

L. PAYMENT AND ACCOUNTING TO OWNER. Payment and complete accounting of rent received. Charges, fees, delinquent

payments, if any, and any expenses, including amounts due OWNER, shall be mailed to the PRIMARY OWNER listed on the account on or about thirty (30) days following the last day of the INTERVAL. Payment by AGENT to OWNER of rental proceeds forfeited, less all charges specified in Paragraph I of the Agreement (AGENT’s Fees, credit card surcharges, etc.) shall be paid to

OWNER in accordance with this Agreement, except that the forfeited funds shall be paid on or about the 15th of the month, two months following the last day of the INTERVAL. If necessary, this will allow time for resolution of disputes between AGENT and renter.

M. STATUS OF RENTAL. In the event that no rental has been made by AGENT, OWNER shall retain the option to withdraw from

Agreement, upon written notice to AGENT. N. CANCELLATION BY RENTER. AGENT shall require renters to pay a deposit upon execution of rental reservation of first

night’s room and tax. Renters who cancel their rental reservation more than 48 hours before check-in will receive a full refund. Renters who cancel within 48 hours of the check-in date forfeit the full rental amount.



O. GOVERNING LAW: The laws of the State of California govern the terms and conditions of this Agreement. Any action or

proceeding by AGENT or OWNER shall be brought in San Diego County, California. P. SALE OR TRANSFER OF OWNERSHIP. In the event that OWNER transfers ownership of the INTERVAL, such transfer shall

be subject to this Agreement, and OWNER shall immediately notify AGENT, in writing, of such pending transfer of ownership, including the name(s), address, phone number(s) and email address of the new owners. It is the responsibility of the current OWNER to inform the new owner of this Agreement and that the purchase of the Interval is subject to this Agreement.

Q. TERMINATION. Either party, with or without cause, may terminate this Agreement at any time by written notice to the other

party in accordance with the terms and conditions contained herein except as further specified herein. If cancelled by OWNER, AGENT shall accept notice of cancellation from any individual appearing on the title. OWNER may not cancel this Agreement if AGENT has rented any portion of the INTERVAL prior to notice of cancellation by OWNER.

R. NOTICE. Notice may be given by either party to the other, at address appearing on this Agreement (Attn: Villa Rental Manager),

by first class mail, postage prepaid, or by fax or e-mail. OWNER is responsible to verify receipt of Agreement and INTERVALS offered by AGENT.

S. RECOVERY OF DAMAGES. In the event that damage or physical injury results from this Agreement, AGENT shall make a

reasonable effort to recover all costs thereof from renter, including but not limited to retaining rents. AGENT shall require a deposit from all renters for each Villa rented, which may be retained to pay such costs. OWNER shall be liable for and indemnify AGENT from any delinquent annual assessments, notes secured by the interval, liens, property taxes attaching to the interval and income taxes, if any, related to the rental. OWNER shall also be liable for any damages suffered by AGENT as a result of a breach of any provision of this Agreement. OWNER will indemnify and hold harmless AGENT from any liability resulting from this Agreement.

T. LIMIT OF LIABILITY. IN NO EVENT SHALL AGENT, ITS PARENT, SUBSIDIARIES, AFFILIATES, SUCCESSORS, OR

ASSIGNS BE LIABLE TO OWNER FOR CONSEQUENTIAL, INDIRECT, INCIDENTAL, SPECIAL, EXEMPLARY, PUNITIVE, OR ENHANCED DAMAGES ARISING OUT OF, RELATING TO, AND/OR IN CONNECTION WITH THE RENTAL OF ANY INTERVAL PURSUANT TO THIS AGREEMENT. AGENT’S MAXIMUM LIABILITY TO OWNER ARISING OUT OF OR RELATED TO THIS AGREEMENT, WHETHER ARISING OUT OF OR RELATED TO BREACH OF CONTRACT, TORT (INCLUDING NEGLIGENCE), OR OTHERWISE, SHALL BE THE FAIR RENTAL VALUE OF THE INTERVAL.

U. DISPUTE RESOLUTION. Resolving customer concerns where reasonably possible to do so is important to us. If your concern has

not been resolved, you may contact our customer service center at (760) 650-4358. If we cannot agree, then any dispute must be resolved as set forth below: Any dispute, claim, suit, demand or controversy arising out of or relating to the use of your Welk timeshare (e.g., Auditions or Platinum Points), or this Rental Agreement, including without limitation the breach, termination, enforcement, interpretation, or validity thereof, and/or the scope or applicability of this arbitration agreement, (“Dispute”), shall be determined exclusively and finally by arbitration. Arbitration is a process whereby a dispute is submitted to an arbitrator, for a final and binding determination, known as an award. The arbitrator is an individual, similar to a judge, who reviews, and weighs evidence provided by both Parties, and renders an award enforceable in court. Decisions by an arbitrator are as enforceable as any court order and are subject to very limited review by a court. By agreeing to mandatory and binding arbitration, you are agreeing to waive the right to go to court to enforce or defend your rights, and to waive your rights to a jury trial and to litigate claims on a class-wide or class-action basis. The parties’ rights will be determined by a neutral arbitrator. If any part of this provision other than the class action waiver in this paragraph is declared unenforceable, the remainder shall be enforceable. If the class action waiver is declared unenforceable in a proceeding between you and the Company, without impairing the right to appeal such decision, this entire provision (except for this sentence) shall be null and void in such proceeding. It is intended that this agreement to arbitrate be broad and comprehensive and includes, without limitation, any Dispute arising out of or related to you use of this Rental Agreement, the purchase and/or use of your timeshare, and your participation in any activities/events sponsored, organized, or made available by Welk Hospitality Group, Inc., its subsidiaries, and affiliates. The arbitration shall be administered by Judicial Arbitration and Mediation Service (“JAMS”). The arbitration shall be held in San Diego County unless another location has been agreed to by the parties in writing. The parties can appear at the arbitration in person, via telephone, or via video conference (if available). Either party may submit its position for decision on the



papers (solely by written presentation) in a format that is fair to both parties and acceptable to the Arbitrator. If you initiate the arbitration, the Company will pay all administrative and arbitrator fees that exceed the amount of the filing fees that you would have to pay if you had brought a lawsuit in state court (in San Diego County). The arbitration shall be held before a single arbitrator and shall be conducted pursuant to this Agreement, the Federal Arbitration Act (9 U.S.C. § 1 et. Seq.) and JAMS Streamlined Rules and Procedures. The arbitrator shall follow applicable substantive law consistent with the FAA, apply applicable statutes of limitations, honor valid claims of privilege, and issue a written reasoned decision which will be final and binding except for any review under the FAA. The arbitrator may award all remedies that would apply in an individual court action (subject to constitutional limits that would apply in court). The arbitrator shall resolve the Dispute as quickly as possible, within one hundred eighty (180) calendar days from the commencement date where reasonably possible. The arbitration, or any portion of it, will not be consolidated with any other arbitration and will not be conducted on a class-wide or class-action basis. The arbitration award shall be final and binding on the parties, and if the arbitrator’s award is equal to or less than Five Thousand Dollars ($5,000.00) there shall be no right of appeal. Judgment on the arbitrator’s award may be entered in any state or federal court of competent jurisdiction. In the event of a conflict between the applicable arbitration rules and these Terms of Use, then these Terms of Use shall govern. The parties retain the right to commence an action in a small claims court that is within the scope of the California small claims court’s jurisdiction unless: (i) that small claims action is transferred, removed or appealed to a different court; (ii) the Dispute is already in a pending arbitration proceeding; or (iii) the Dispute has already been resolved in arbitration. You may reject this arbitration provision by sending a written notice which gives your name, address, and Auditions or Platinum contract number (if any), and states that you reject this arbitration provision. The rejection notice must be sent by certified mail, return receipt requested, or reliable overnight delivery service with proof of delivery (e.g. UPS or FedEx) to WELK RESORT GROUP, INC. 300 RANCHEROS DRIVE STE. 100, SAN MARCOS, CA, 92069 ATTN: ARBITRATION OPT-OUT. Your rejection notice must be signed and received by us within thirty (30) days after your execution of this Rental Agreement. Rejection of arbitration will not affect any other term of these Terms of Use.

Further information about arbitration may be obtained from JAMS online at www.jamsadr.org, by calling (619) 236-1848 or writing to JAMS, 401 B Street, Suite 2100, San Diego CA 92101.

V. CLASS ACTION WAIVER. TO THE EXTENT A CLAIM IS NOT SUBJECT TO THE ARBITRATION PROVISION IN

SECTION U ABOVE, OR TO THE EXTENT AN OTHERWISE ARBITRABLE CLAIM IS LITIGATED IN COURT, THE PARTIES HEREBY UNCONDITIONALLY WAIVE THEIR RIGHT TO A JURY TRIAL OF ANY AND ALL SUCH CLAIMS OR CAUSES OF ACTION, WHETHER NOW EXISTING OR HEREAFTER ARISING, AND WHETHER IN CONTRACT, TORT, EQUITY, OR OTHERWISE. EACH OF THE PARTIES HEREBY AGREES AND CONSENTS THAT ANY SUCH CLAIM, DEMAND, ACTION, OR CAUSE OF ACTION SHALL BE DECIDED BY COURT TRIAL WITHOUT A JURY AND THAT THE PARTIES MAY FILE AN ORIGINAL COUNTERPART OF A COPY OF THIS AGREEMENT WITH ANY COURT AS WRITTEN EVIDENCE OF THE CONSENT OF THE PARTIES TO THE WAIVER OF THEIR RIGHT TO TRIAL BY JURY.

W. JURY TRIAL WAIVER. TO THE EXTENT A CLAIM IS NOT SUBJECT TO THE ARBITRATION PROVISION IN SECTION

U ABOVE, OR TO THE EXTENT AN OTHERWISE ARBITRABLE CLAIM IS LITIGATED IN COURT, THE PARTIES AGREE TO WAIVE THEIR RIGHT TO PARTICIPATE IN A REPRESENTATIVE CAPACITY OR AS A MEMBER IN ANY PURPORTED CLASS ACTION OR REPRESENTATIVE PROCEEDING. THERE WILL BE NO RIGHT OR AUTHORITY FOR ANY CLAIMS TO BE LITIGATED ON A CLASS ACTION BASIS OR ON BASES INVOLVING CLAIMS BROUGHT IN A PURPORTED REPRESENTATIVE CAPACITY ON BEHALF OF THE GENERAL PUBLIC, OTHER PURCHASERS, OR OTHER PERSONS SIMILARLY SITUATED

X. AUTHORITY. OWNER warrants and represents that he/she possesses the legal power and authority to enter into this Agreement

and perform all obligations hereunder, including on behalf of any and all other persons appearing on title to OWNER’s property. (If OWNER owns multiple intervals, OWNER will be required to execute a separate Agreement for each interval.) In the event the contract is altered, contract is null and void.



When signed by OWNER, this Agreement constitutes a binding agreement between the OWNER and the AGENT. ____________________________ ______ ________________________________ _____ Primary Owner’s Signature Date Co-Owner’s Signature Date

_________________________________________ _________________________________________ Printed Name Printed Name

_________________________________________ _________________________________________ Primary Owner’s Social Security Number Co-Owner’s Social Security Number REQUIRED for Tax Purposes REQUIRED for Tax Purposes

_________________________________________ _________________________________________ Phone Number Phone Number

_________________________________________ _________________________________________ E-Mail Address E-Mail Address

Documents

WRG OwnerRental Contracts Master-Revised05042020