Barefoot Ownership Flexibility
Barefoot Resort offers owners tremendous flexibility on their deeded vacation time. Many different options are available through the internal exchange program. The following information has been prepared to use as a reference guide for Barefoot Owners. It outlines the policies and guidelines that owners need to follow to maintain fair and equitable usage. Our hope is make Barefoot Ownership simple to understand, and easy to use. The following information should answer most questions, but if further clarification is needed, please do not hesitate to call us here at the resort. 1-800-424-0225

Splitting Your Owner Week
Internal Exchanges Unit & Season Upgrades
Giving Your Unit/Week As A Gift
Owner Bonus Time
Rates & Discounts
Maintenance Fee Policy
In-pool Rental Program & Agreement Form
Owner Referral Program & Agreement Form
Reselling Your Barefoot Time-share & Resale Agreement Form

Splitting Your Owner Week
An owner is not necessarily bound by the week they have purchased. At the Barefoot Resort an owner has the option to split their week. This means an owner could visit the Barefoot Resort twice in a year on their owner time rather than just once during their owner week, based on availability.
Splitting a week at the Barefoot Resort is similar to an Internal Exchange (see "Internal Exchanges"). However, an owners week may only be split once per year. Since Barefoot Resort has a two-night minimum stay policy, an owner's time can be split one of two ways, two and five nights or three and four nights. The owner can do this at anytime throughout the year as long as the time coincides with the time that the owner purchased. For example, if an owners owns B20 (a one bedroom) week 15 (a blue week in April) and would like to split their time, the only time they can exchange for is another one bedroom unit in a blue week.
Upgrades to a larger unit or higher time are possible but can only be made fourteen (14) days prior to the arrival date. There are no provisions to just pay the difference for an upgrade if an owner wanted to ensure an upgrade prior to the fourteen (14) days (see "Owner Upgrades").
Once an owner has changed their original owner week, the time that has been changed is no longer available to the owner. For example, an owner owns week ten in March and switches time for week 37 in September. For that year, week ten is no longer available to the owner, the Barefoot will use that time. The Barefoot cannot guarantee that the week will be available if that owner decides they want it back. Owners should be sure that they want their time to be changed because beyond an owner's week, the Barefoot cannot guarantee any availability.
All owners time used at Barefoot must be used within each calendar year. Special arrangements can be made based on management approval for owners that have the last few weeks of the year.

Internal Exchanges We want to be extra good to our owners so we try to offer flexibility here at your home resort. Part of your internal benefits are to exchange your time internally for another time at no cost. For example; week 34, 2004 falls in August, this could be used starting week 1, 2004 in January. You do not need to wait until August to begin using your 2004-week.
If you are requesting an Internal Exchange of a like unit and season, you are welcome to make that request any time within the calendar year. If you would like to upgrade your unit or seasonal time you can do this at no cost by making your request fourteen (14) or less days prior to your arrival date (see "Unit Upgrades").
You may also split your week into two increments, this type of exchange will allow you to use two weekends if you life (see "Splitting Your Owner Week"). The internal exchange policy is based on availability.
For those of you that own a two or three bedroom lockout unit, your options are even greater. You may split the units giving you two (2) separate units. The two bedroom will split apart to make a one bedroom and studio or three bedroom will split apart to make a two bedroom and studio. You may internally exchange both weeks separately to stay at different times and you may even split both of the weeks to have as many as four short stays. As always an owner may upgrade the unit to a larger unit or better season by waiting fourteen (14) days or less prior to the date of arrival. With these lockout units you can even bank on side with RCI for travel to a different RCI Resort and save the other side to use at Barefoot yourself or in-pool the time for potential rental.
You do not need to go through RCI to exchange into your home resort. If you bank your week with RCI and exchange it back into Barefoot Resort, you will pay the RCI domestic exchange fee. Keep in mind if using your time here at Barefoot it must be used within the calendar year (January 1st to December 31st).

Unit Upgrades
A unit upgrade is moving your owner time to a time that is more valuable than the unit you own. In other words, upgrading from a two bedroom to a three bedroom or white time to red season. These upgrades can only be done two weeks (fourteen days) prior to the arrival date. This does not mean your reservation cannot be made. The Barefoot Resort can reserve a unit for you initially, then the owner can call two weeks prior and try to get and upgrade at that time. The Barefoot Resort is not responsible for availability of any upgraded unit. The staff can inform you if one appear to be available but can make no guarantees that the unit will be available in the two weeks prior tome period. There is no charge for upgrades. Sorry, our system does not allow us to create a waitlist so our policy is "first come, first serve".

Giving You Unit/Week As A Gift
An owner may offer their unit/week to a friend or family member to use. An owner may even rent out their unit/week themselves. If an owner rents out their unit, it is completely the owner's business and the revenue has nothing to do with Barefoot. Just be aware of two things.
1. The owner must call us and let us know who will be using the time.
2. The owner is still responsible for any damages in the unit above normal wear and tear.
We suggest an owner should be familiar with the guest that they send to use their time.

Owner Bonus Time
The Barefoot Resort has an owner program called Bonus Time. Bonus Time is offered only to those who own at the Barefoot Resort. It is a nightly discounted rental at Barefoot Resort above and beyond the owners owned time. Bonus Time rental is not deducted from the owner's deeded week.
The Barefoot has a two (2) night minimum stay policy, which includes Bonus Time. The Studio is the only unit that can be rented out for only one night. Bonus Time cannot be booked any further in advance than 14 days and is based on availability. Bonus time is also not subject to owner time restrictions, meaning if an owner owns in a blue season they are not restricted to a blue week bonus time reservation, it may be reserved during any season except Bike Rally Week.
As with any reservation at the barefoot, a one-night deposit will be taken at the time of the reservation to guarantee the arrival. Bonus Time rates are considerably less than rack rate and quite competitive to rates at a hotel in the area. Rates for Bonus Time are as follows: One Bedroom $49.00, Two bedroom $59.00, Three bedroom $69.00, and Cabin $89.00. These rates are subject to change.
An owner may reserve only one bonus time unit along with one owned unit at the same time. Bonus Time may be utilized by immediate family members of an owner (parents, or adult children, minimum 21 years old). When reserving Bonus Time, a credit card number must be taken and the first night will be charged to the card as the deposit. If Bonus Time reservations are canceled the deposit will be forfeited.
Availability for Bonus Time is sometimes limited since it may only be reserved fourteen (14) or less days prior to the date of arrival. The Barefoot Resort is not accountable for availability. An owner can call at any time to check on availability but Bonus Time can only be reserved fourteen (14) or less days prior to the arrival date. In the event that the unit available is a unit that has been put in to (rental) in-pool by an another owner, it may be rented out at the bonus rate, with the same 14-day reservation restrictions. The income from these units will be disbursed the same as rack rate rentals (see "In-pool Rentals", pg. 9).

Rates and Discounts
An owner is always welcome to use Bonus Time but if the owner wants to be guaranteed a unit at a certain time other than their owner time, the owner is welcome to book a rack rate reservation. Rack rate is a competitive nightly rate for a stay at Barefoot Resort. The owner would receive a 20% discount per night because they are owners. These reservations are subject to the same rules as a normal rack rate reservation.
Barefoot Resort allows regular rack rate reservations for non-owners or non-RCI-members. In other words, the general public may rent a unit that has been in-pooled by an owner or a unit that is still owned by the CMM Developers.
Policy on rentals is as follows: two night minimum stay (this goes for Owner Bonus time as well), rates are based on double occupancy; extra charges apply for additional persons over eighteen. A one-night deposit is taken at time of reservation for a guarantee with a fourteen day cancellation window) if renter cancels inside the fourteen-day window, deposit is forfeited). Reservation cannot be held until a one-night deposit has been made.
Barefoot Resort offers a few discounts as well. If the stay is for more than five nights, the renter will receive a 10% discount. If the renter is an owner from another RCI resort, they will receive a 20% discount (must show proof of RCI membership). These discounts cannot be combined.
Even though an owner is welcome to reserve at rack rates anytime throughout the year, an owner cannot reserve a unit at rack rate if the intent is to hold a unit until two weeks prior to get bonus time upgrades. For example, an owner cannot reserve a three bedroom at rack rates in March for a stay in August, then cancel two weeks prior to arrival, then call for a bonus time reservation knowing that the unit you just canceled is available.
If an owner already has one owner time unit and one Bonus time unit, that owner can only rent another unit at rack rate (with a 20% discount.)

Maintenance Fee Policy
The Barefoot Resort has grown to over 700 owners and as the resort grows so must management of the Maintenance Fee policies. Before an owner banks their week with RCI, that weeks maintenance fee(s) must be paid. In other words, if banking a future years week, the maintenance fee must be paid before that year's week may be banked with RCI. Example: If banking a 2005 week(s), the 2005 maintenance fee(s) must be paid. If paying a future maintenance fee use the amount from the past year and if an increase in the maintenance fee occurs, Barefoot will invoice you for the difference. If you are unsure of the amount please call us on the toll-free line, 1-800-424-0225. Thank you for your understanding that this policy must be enforced to protect all owners.
Each year maintenance fee invoices are sent January 1st and due by February 1st, unless arrangements are made to pay semi-annually or quarterly. If the maintenance fee payment is not received by February 1, or thirty (30) days after any other semi-annual or quarterly payment due date a $20 late fee will be assessed. Additionally, after sixty (60) days in arrears and annual maintenance fee that is still outstanding will incur interest at the rate of one and one-half percent (1 ½%) per month. Furthermore, any owner with an outstanding maintenance fee balance will be denied use of their unit at Barefoot or any other forms of usage including RCI Banking. If maintenance fee(s) remain out standing after one hundred eighty (180) days the unit/week(s) will be in-pooled and any revenue will belong to the Barefoot. If maintenance fees remain unpaid for a long period of time, the ownership will be foreclosed.
When making your maintenance fee payment, Barefoot requires a personal check or money order. We are sorry, but we cannot accept a credit card to pay maintenance fees due to the increase cost to Barefoot. Thank You!

In-pool Rental
If you are unable to make use of your week you might consider putting it into In-pool Rental. Please do not assume that we know you want your week rented, even if you have done so in past years. We must have a signed rental agreement on each week for each year that is to be in-pooled. We have included an In-pool Rental form on the next page from which you can make copies.
For best results, In-pool your time early because condo rentals usually are not rented at the last minute. We suggest you call and check on the status of your In-pooled unit approximately fourteen (14) days prior to the weeks start date. That way if you have remaining days that did not get rented, you may take those days out of the In-pool and save them to use another time here at the Resort within the calendar year. It will also eliminate the possibility of us renting your In-pool to another owner at the discounted bonus rate. Another reason for checking on your week approximately fourteen (14) days prior to the start date is if no days have been rented you will still have time to bank your week with RCI. RCI will accept your banked week up to 14 days prior to the start date. Ultimately it is the owners responsibility to check on their week. If the week goes by and the owner does not pull the un-rented days, the owner will lose those days.
In the newest building, Vista Peak, the two and three bedrooms are lockout units. One, two and three bedroom units are much easier to rent than studios alone. If you are making use of one side of the unit and wish to In-pool the other that is fine, but we will not In-pool them separately. If the renter requests one side or the other we will rent what we can but we cannot In-pool them separately.
After the month has ended, In-pool rental disbursements are calculated and checks are processed after the 10th of the month.
Sturgis Rally week owners that wish to rent out their time should get their week into the In-pool as soon as possible. The best time to rent Sturgis Rally week is a year in advance during the Rally. We will have Sturgis Rally guest that come in during their stay and request to book next years stay. If the owners have not In-pooled their week, we cannot rent it. Barefoot renters cancellation policy for anytime other than Bike Week is; if reservation is cancelled at least 14 days prior to arrival, we refund the deposit. If canceled inside the 14 days, the renter loses their deposit, which the resort retains.

Barefoot Resort In-Pool Rental Usage Agreement
Please fill out the appropriate area on your Timeshare Usage for this year:

I, _________________________________________, agree to have Barefoot Resort rent my Timeshare Unit

________________Week _________________ for the year ____________.

· I understand that I will receive 75% of the rental income from my week and that Barefoot Resort will keep 25% of the rental income for a management fee.
· I understand that 14 days prior to my week, Barefoot Resort has the option to place Owners in to my rental unit at the Owner Bonus Time Rental Rate and that I will receive 75% of the rental income. Barefoot Resort well keep 25% of the rental income for a management fee.
· I understand that I must send this Rental Agreement to Barefoot Resort at least one (1) month prior to them renting out my timeshare unit and week.
· I understand that it is my obligation to contact Barefoot Resort prior to the beginning of my Timeshare week to confirm the status of my unit. If this unit has not been rented,
I understand it is my obligation to remove my unit from the rental pool or those days will be lost and I, as an owner, no longer have access to them for that year.
· I understand I must keep a copy of this Rental Agreement for my records.
· I understand that the Barefoot Resort will attempt to rent my unit in accordance with the current rental policy.For questions on this policy, please call the Barefoot Resort. 1-800-424-0225
· I understand that Barefoot Resort can make no guarantee that they will be able to rent my unit for an entire week, and may rent the unit for only a portion of my week.

Please sign and send agreement to: Barefoot Resort, 21111 Barefoot Loop, Lead, SD 57754
Or Fax to 605-584-3811

_________________________	_________________________
Timeshare Owner Signature	Barefoot Resort Staff

Owner Referral Program
We know the best advertising is word of mouth. And for barefoot owners, word of mouth advertising could mean cash in your pocket!
Here is how it works: mail us, fax us, or call us with the names, addresses and phone numbers of the friends and family members that you think might enjoy the same opportunity you had to look at the ownership program. If you would like, make a copy of the Owner Referral Agreement Form located on the next page (pg., 12) and send us your referrals. We will send your referrals an Owner Referral Letter offering our most current promotional package.
If they take advantage of the promotional package and then decide to purchase a unit/week from Barefoot Resort, you will receive cash according to the season they buy. A red week $300, white Week $250, or a blue week $200.
Owner referral checks are cut the following month of the sale. This cannot be applied directly to an owners maintenance fees because we need to create the appropriate paper trail.
This system is now in place to be done on a regular bases. So be assured if you take the time to get us your Owner Referrals we will make certain they receive the invite.
Thank you and good luck!
Call us-1-800-424-0225
Fax us-1-605-584-3811
Mail us-21111 Barefoot Loop, Lead, SD 57754
Email us-barefoot@mato.com

Owner Referral Agreement
As an owner at The Barefoot Resort, I would like the following persons to receive information about taking a presentation of vacation ownership at Barefoot Resort.

I understand that when the above named, qualified families become owners at The Barefoot Resort,
I will be awarded with:
$200.00 for their purchase of a Blue Week
$250.00 for their purchase of a White Week
$300.00 for their purchase of a Red Week
I also understand that we will personally contact each one of the above named persons to briefly explain why we became owners, and to inform them that The Barefoot Resort will be contacting them with information about a vacation presentation tour of The Barefoot Resort.

Date Reselling Your Barefoot Timeshare
You can list your property with a timeshare resale specialist. We recommend using a licensed established company.
If you would like Barefoot Resort to list your vacation ownership in our sales inventory, here is the policy.
o The contract must be clear from Barefoot financing. This means the contract must be paid off or have independent financing.
o We must have in writing an agreement from you to list your property for resale. Please call for a resale agreement form or write a letter that includes the following:
Ö All the names listed on the Warranty Deed must also be listed with signatures along with all notarized signatures.
Ö An identification of your property (Unit/Week) and the current Barefoot listed price.
Ö An understanding that all standard discounts will apply to resale:
Ö An agreement that Barefoot Resort will retain 25% of the total sale price for commission.
o Once this letter is received it will be reflected on inventory sheets as available for sale.
o When the property is sold we will issue a Quick Claim Deed along with a letter from Barefoot Resort with the intent to resell your property. Once you receive these documents you will need to sign the Quick Claim Deed and return it back to us as soon as possible. Upon the receipt of the Quick Claim Deed we will send you a check for the amount due to you.
BY ENROLLING YOUR WEEK IN THE RESALE PROGRAM, YOU ACKNOWLEDGE THAT THE BAREFOOT RESORT DOES NOT AND CAN NOT GUARANTEE THAT IT WILL BE ABLE TO RESELL THE WEEK AND THAT EITHER PARTY MAY TERMINATE THE RESALE AGREEMENT BY GIVING THIRTY (30) DAYS NOTICE TO THE OTHER PARTY. UPON TERMINATION, NEITHER PARTY WILL HAVE ANY FURTHER OBLIGATION TO THE OTHER. ONCE THE WEEK HAS BEEN ENROLLED IN THE RESALE PROGRAM, YOU MAY NO LONGER ATTEMPT TO SELL IT THROUGH OTHER AVENUES.
Another option would be to sell it yourself in which case you make the rules. If you would like us to administer the paper work and/or record the deed(s) we are able to handle that for an administration fee and/or recording costs.

Barefoot Resort Resale Agreement

Owner Name(s)______________________________________

                         _______________________________________

Unit #/ Week#  _________________________________________

Current List Price_________________________________________

BY ENROLLING YOUR WEEK IN THE RESALE PROGRAM, YOU ACKNOWLEDGE THAT THE BAREFOOT RESORT DOES NOT AND CAN NOT GUARANTEE THAT IT WILL BE ABLE TO RESELL THE WEEK AND THAT EITHER PARTY MAY TERMINATE THE RESALE AGREEMENT BY GIVING THIRTY (30) DAYS NOTICE TO THE OTHER PARTY. UPON TERMINATION, NEITHER PARTY WILL HAVE ANY FURTHER OBLIGATION TO THE OTHER. ONCE THE WEEK HAS BEEN ENROLLED IN THE RESALE PROGRAM, YOU MAY NO LONGER ATTEMPT TO SELL IT THROUGH OTHER AVENUES.
This document is a request for Barefoot Resort to sell the above vacation ownership unit/week.
· Buy signing this request I/we understand it will be offered for sale at the current listed price of the Barefoot Resort timeshare sales.
· I/we also understand that Barefoot will offer the "standard discounts then in effect" to anyone who might be interested in purchasing the property.
· Furthermore I/we understand Barefoot Resort will retain 25% for re-selling property.

Signature(s) ______________________________        Date _____________
         
                     ______________________________        Date _____________

Notary Public On this date _______________, ___________________and ___________________ appeared before me, the undersigned officer, acknowledging their signatures.
In Witness Whereof, I hereunto set my hand and official seal

______________________________, Notary Public

My commission Expires: ________________________

Gold Card Owner's Agreement
1. RCI Points Membership:
A Gold Card Owner will receive the first year "Points" or "Traditional" membership dues paid by Barefoot Resort along with the RCI enrolment fee.
2. RCI Bonus Week:
One RCI Bonus Week to redeem with RCI cost starting at $249 with a 20% discount.
3. Additional Purchase:
15% off the list price will be given to current owners for additional weeks purchased excluding week 31, Bike Rally.
4. Price Freeze:
Gold Card owners may, for twelve (12) months from the date of their original purchase, purchase additional property at The Barefoot Resort under the same price schedule in effect on this date.
5. Equity Upgrade Privilege:
Gold Card owners may, upon payment of a transfer fee, transfer their principal equity from any unit to any other Barefoot Resort unit, subject to availability.
6. Split Week Option and Owner Upgrades:
Gold Card owners may "split" their week of usage at Barefoot Resort into weekend and mid-week vacations. Week may be split only once. Time has to be used in the calendar year. Owners may up grade their unit based on availability no more than 14 days prior to the arrival date.
7. Owner Bonus Rental Discount:
Owners receive a discounted rate on reservations made within 14 days of their stay. Bonus rates for owners are: $49.00 - one bedroom unit, $59.00 - two bedroom unit, $69.00 - three bedroom unit, $89.00 - four bedroom cabin. Barefoot Resort requires a two-night minimum stay with the exception of the studio unit, which can be reserved for as little as one night. . 8. Owner Referral Program: Gold Card owners are entitled to receive certain benefits for referring other clients to us who also become Barefoot Resort owners.
9. Gold Card Discounts:
Gold Card owners are entitled to discounts off non-discounted goods and services at selected business establishments, Barefoot Resort, and selected recreational facilities in the surrounding area. The benefits and privileges specified in this agreement are subject to the acceptance of your offer to purchase a Barefoot Resort Timeshare. Buyer is further subject to making all payments in a timely manner called for in the purchase agreement and installment contract, including annual maintenance fees. These benefits and privileges are subject to change, run with the property and are transferable to a new owner upon sale of the property.

From the Sales Department
Owner Discount:
Barefoot Owners have special benefits for extra discounts when purchasing additional unit/weeks. All owners have a standing 15% discount plus any additional cash discounts offered. We also encourage Barefoot Owners to purchase additional weeks with us, by offering periodic specials to the owners in the quarterly newsletter, "Footprints".
Equity Upgrade Privilege:
Every Barefoot Owner has Equity upgrade privileges. Whatever investment has been made into a unit/week is considered equity. If the owner would like to have a larger unit or different time of year, equity from the original purchase may be transferred, the owner then pays the difference, and the new unit/week is transferred into the owners name. If your wanting more points to trade, Barefoot has exceptional high point values on blue weeks. An additional blue week can really add exchange value to a Barefoot Owners Portfolio.
Mission Statement:
Our intention is to represent our product as honestly and professionally as possible. To offer vacation owners the best value for their money. And to put the quality back into your family's vacations. Please call 1-800-424-0225 and ask for a sales associate.
CMM, Inc. Developers