Greg Campbell General Manager Marriott Grand Residence Club

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1 September 25, 2017 Dear Marriott Grand Residence Club at Lake Tahoe Member: These minutes are being distributed to Members as outlined in the Bylaws, Article 6. Directors, Section 6.17 Minutes of Meetings. For questions related to the minutes, please contact me via at Sincerely, Greg Campbell General Manager Marriott Grand Residence Club

2 GRCLT Condominium, Inc. Board of Directors Meeting July 25, 2017 A regular meeting of GRCLT Condominium, Inc., Board of Directors was held via conference call on July 25, 2017, hosted from Marriott Grand Residence Club, Lake Tahoe, 1001 Heavenly Village Way, South Lake Tahoe, California Present from the Board of Directors were: David Bier, President; James Deatherage, Vice President; Gary Giboney, Treasurer; James McBee, Secretary; John Albert, Director; James Ray Newlon, Director and Lewis Feldman, Director Present from Marriott Vacation Club International, representing the Management Company, were: Anthony Baldin, Regional Project Director-West; Greg Campbell, General Manager; Meghan Dorris, Assistant Controller; Ted Howard, Chief Engineer; Samantha Hynes, Association Governance Manager-West; Jennifer Kammerer, Area Director of Finance-Southwest; Manuel Sanchez, Director of Room Operations; Patricia Schille, General Manager, Marriott s Timber Lodge; Bob Spear, Regional Director of Operations-West and Sheri Runyon, Executive Assistant, acting as Recording Secretary Guests present were: Curtis Sproul and Jason Sherman, Sproul Trost LLP CALL TO ORDER David Bier, President, called the meeting to order at 9:01 a.m., Pacific time. Overview of Senate Bill Section 4900, est. seq. (Open Meeting Act) of California Civil Code Mr. Bier reviewed the Davis-Stirling Act, Section 4900, Open Meeting Act. ESTABLISHMENT OF QUORUM Mr. Bier announced, with all Board Members present, quorum was met. APPOINTMENT OF RECORDING SECRETARY Mr. Bier appointed Sheri Runyon to serve as Recording Secretary. PROOF OF NOTICE OF BOARD OF DIRECTORS MEETING Notice of Board of Directors Meeting was ed to each Board Member on April 20, 2017, as required by the Association Bylaws. APPROVAL OF AGENDA A motion was made by Lewis Feldman to approve the Agenda as presented. The motion was seconded by John Albert and unanimously carried. APPROVAL OF BOARD OF DIRECTORS MEETING MINUTES A motion was made by James Ray Newlon to approve the April 20, 2017 Board Meeting Minutes as presented. The motion was seconded by James Deatherage and unanimously carried. FINANCIAL REPORT 2017 Financial Review Meghan Dorris presented the 2017 Financial Review. Highlights included: The current year-end forecast for the Operating Fund shows a deficit of $264,504, with a life to date fund balance deficit of $128,530; key drivers include higher than forecasted Electricity, Gas and Legal expenses Legal expenses from litigation with South Tahoe Public Utility District are approximately $225,000 Several unexpected repairs occurred in 2017 including: replacement of penthouse kitchen floors at a cost of $3200, repair/replacement of rain gutters at a cost of $5,230, and the cooling tower was fitted with chemical treatment controls at a cost of $10,400. The Armstrong Study was completed, as well as a review of the roofs and chillers by Mechanical Services Systems. Armstrong and Mechanical Services Systems recommended the flat roof areas and low slope

3 roof area on the Annex Building be repaired and the building automation system be replaced, due to the failure of the original automation system. The Management Company is researching heating mats for the flat roof areas near the Chiller to help with snow melt during the winter months A motion was made by Lewis Feldman to approve spending $18,830, which includes $15,630 from the Common Area Reserves and $3,200 from the Fractional Reserves for 2017 Emergency Reserve Expenditures. The motion was seconded by James McBee and unanimously carried. Reserves Jennifer Kammerer presented the Reserves. Highlights included: During 2017, a Reserve Study was conducted by Armstrong Consulting, Inc. The study considers the replacement, repairs and/or refurbishment of the villa interior furniture, fixtures and equipment as well as short-lived building and site improvement for the common elements throughout the resort. The study provides a budget planning tool for the Board to establish reserve contribution levels that will enable the Association to achieve its capital project goals. The cash flow report included in the study was reviewed with the Board and a full copy of the complete reserve study was offered upon request. The study recommended an annual reserve contribution at a 6% increase per year from 2018 to 2035 for the Fractional Reserve Plan and a 26% increase from 2018 to 2023 for the Common Area Reserve Plan. The Management Company reviewed cash flow scenarios with updates to the projected expenditures schedule, enabling the Board to identify opportunities to modify the annual rate of contribution increases while maintaining funds available for potential cost overruns or premature component failures. The original cash flow planned for interior villa refurbishments on a 5-year life cycle for the Fractional Reserve Plan. At the Board s request, a scenario was created to depict the cash flow plan following a 6- year refurbishment cycle. Additionally, a third party contractor performed a survey on the resorts exterior structural components to provide a schedule and budgetary estimate for future potential repairs and replacements. As a result, an additional $2,400,000 was added to the reserve plan to account for significant roof and mechanical equipment replacements Common Area Reserve Expenditures: Roof, low slope membrane #20 at a cost of $93,000 Roof, low slope membrane #12 chiller roof at a cost of $390,000 Building Automation System at a cost $150,000 A motion was made by John Albert to approve, but not to exceed, $633,000 for 2017 Common Area Reserve Expenditures. The motion was seconded by James McBee and unanimously carried. Accounts Receivable Report Ms. Dorris reviewed Accounts Receivable. Highlights included: 2017 year to date outstanding fees were 33.5%, compared to 36.4% in Proposed Reserve Projects Ted Howard presented the 2018 Proposed Reserve Projects. Highlights included: Fitness Center cardio equipment is due to be replaced every three years but it is still in good condition After evaluation of the pool deck furniture, the Management Company recommended replacing pool deck umbrellas, umbrella bases and add additional chaise lounge chairs The scope of painting and staining the entire building was evaluated; the Management Company recommended to only paint and re-stain areas of the building as needed A motion was made by Lewis Feldman to postpone the replacement of the Fitness Center cardio equipment to 2019 Fractional Ownership Reserves in the amount of $65,859. The motion was seconded by James Deatherage and unanimously carried.

4 2018 Fractional Ownership Reserve Expenses Replace air handling unit-vfd/controls (AHU-1) at a cost of $14,420 Purchase attic stock-unit interior at a cost of $23,166 Replace pool deck furniture (umbrellas, bases, cushions) at a cost of $13,274 Resurface pool deck at a cost of $54,374 Re-tile pool/spa at a cost of $10,300 Resurface pool at a cost of $38,500 Resurface spa at a cost of $21,500 Replace pool/spa filter-recirculating pump at a cost of $7,265 Replace spa jet pumps at a cost of $9,270 A motion was made by James McBee to approve $192,069 for 2018 Fractional Ownership Program Reserve Expenses for GRCLT Condominium, Inc. The motion was seconded by James Ray Newlon and unanimously carried Common Area Reserve Expenses Repair roof/snow melt system at a cost of $12,875 Paint/stain building exterior at a cost of $48,500 Replace domestic hot water recirculation balancing valve at a cost of $36,050 Replace domestic hot water mixing valve at a cost of $20,600 Replace chiller control panel at a cost $5,105 Overhaul chiller #2 at a cost of $42,112 A motion was made by Lewis Feldman to approve $165,242 for 2018 Common Area Reserve Expenses for GRCLT Condominium, Inc. The motion was seconded by John Albert and unanimously carried. NEW BUSINESS Legal Report Curt Sproul and Jason Sherman presented an update on legal matters. Highlights included: The settlement between the Association and Marriott Ownership Resorts, Inc. (MORI) over legal fees is final; the reimbursement will be split as follows: 63% Fractional Ownership and 37% Common Area The potential adjustment of real estate taxes for the Fitness/Spa area was discussed. Davis Stirling, CA Code 4041 Mr. Sproul advised Davis Stirling, California Code 4041, applies to only conventional timeshare and vacation ownerships and therefore does not apply to Grand Residence Club Owners. The Management Company recommends further review with Marriott Legal Counsel and Association Counsel to determine the opinion on the direction recommended. Association Counsel recommends California Civil Code 4041 only be sent to Commercial Owners. A motion was made by Lewis Feldman to direct the Management Company to only send the California Code 4041 Annual Mailing to Grand Residence Club Lake Tahoe Commercial Owners and not Grand Residence Club Lake Tahoe Owners, per the advice given by Association Counsel. The motion was seconded by John Albert and unanimously carried. RESORT OPERATIONS REPORT Manuel Sanchez presented the Resort Operations Report. Highlights included: Through Period 6, overall Guest Satisfaction Score is 90.1% Staffing continues to be a challenge; the Management Company is pursuing H2B Visas for potential associates residing outside the country ACTION ITEMS Greg Campbell presented an update on Action Items. Highlights included:

5 Once the settlements with South Tahoe Public Utility District and the Management Company are finalized, the Board President will send a newsletter to the Owners NEW BUSINESS (Continued) Announcement of Next Board of Directors Meetings Board and Annual Meetings October 24, 2017 Board Meeting January 23, 2018 Board Meeting April 24, 2018 Board Meeting July 17, 2018 Board and Annual Meetings October 23, 2018 ADJOURNMENT There being no further business to come before the Board, a motion was made by Lewis Feldman to adjourn the meeting at 11:06 a.m. The motion was seconded by James Ray Newlon and unanimously carried. Submitted by: Approved by: Sheri Runyon Date David Bier Date Recording Secretary President These minutes are subject to approval at the next Board of Directors Meeting

Patricia Schille General Manager Marriott s Timber Lodge. November 21, Dear Marriott s Timber Lodge Owner:

Patricia Schille General Manager Marriott s Timber Lodge. November 21, Dear Marriott s Timber Lodge Owner: November 21, 2017 Dear Marriott s Timber Lodge Owner: These minutes from the Timber Lodge Condominium Association and the Timber Lodge Timeshare Association Board Meetings are being distributed to Owners