DISCLOSURE GUIDE 2002-2003 This publication contains information that indicates resorts participating in, and explains the terms, condi- tions and use of, the RCI Weeks Exchange Program operated by Resort Condominiums International, LLC. You are urged to read it carefully. PRIVATE OCCUPANCY — The number of persons that a DEFINITIONS resort unit may accommodate, based on two adults per private sleeping area with private access to a bathroom. AFFILIATED RESORT — A resort, resort group, vacation club, vacation plan or other legal entity with which RCI has a RCI WEEKS EXCHANGE PROGRAM — RCI’s interval-based contractual agreement to offer the RCI Weeks Exchange program of facilitating exchanges of Vacation Time. Program. RCI WEEKS MEMBER — A person who, or entity that, AUTO-DEPOSIT PROGRAM — A program which allows owns or purchases Vacation Time at an RCI-Affiliated Resort members to automatically deposit their Vacation Time with and is enrolled as a subscribing member of RCI. This term RCI. includes a Vacation Owner whose participation in the RCI Weeks Exchange Program is arranged through corporate CANCELLATION FEE — Fee charged to RCI Weeks participation in RCI. Members who cancel confirmed exchanges pursuant to the “Canceling a Confirmation” section of this Disclosure Guide. RCI SPACEBANK — The inventory of Vacation Time from which RCI Weeks Exchange Requests and other demand COMMENT CARDS — The written evaluation by an RCI needs are confirmed. Weeks Member of a Host Resort. RESORT AFFILIATION AGREEMENT — The written COMMENT CARD SCORES — The composite evaluation of contract governing the relationship between RCI and an an RCI-Affiliated Resort derived from member comments. Affiliated Resort. CONFIRMATION — The written notice informing an RCI SEASONAL DESIGNATIONS — The seasonal periods into Weeks Member of a confirmation and that accommodations which deposited Vacation Time is divided, based upon have been reserved for use by the RCI Weeks Member. demand. Red = High Demand, White = Medium Demand, Blue = Low Demand. DEPOSITOR — An RCI Weeks Member who deposits Vacation Time into the RCI SPACEBANK. TRADING POWER — The value of deposited Vacation Time and the related Exchange Request. EXCHANGE — The process by which RCI Weeks Members receive comparable vacation exchanges. TRAVEL DATES — The starting and ending dates of a vacation exchange. EXCHANGE REQUEST — A request of resort or region choices from which RCI attempts to locate a resort unit VACATION OWNER — A person (including a corporate which has comparable Trading Power. participant) that has purchased Vacation Time at an RCI- Affiliated Resort. GUEST CERTIFICATE — Certificate presented to the provider of accommodations when an RCI Weeks Member VACATION TIME — Week(s), or parts thereof, purchased or has given a Confirmation to a friend or family member as a deposited into the RCI SPACEBANK, whether owned as a real gift. estate interest or as a right to use interest. HOME RESORT — A resort at which an RCI Weeks Member ENDLESS VACATION, RESORT CONDOMINIUMS owns Vacation Time or a resort at which an RCI Weeks INTERNATIONAL, RCI, RCI and design, RCI TRAVEL, and Member is assigned Vacation Time to deposit for the purpose SPACEBANK are trademarks that may not be used without of exchange. the prior written permission of Resort Condominiums International, LLC. Other brand names may be trademarks HOME RESORT GROUP — A group of RCI-Affiliated Resorts of their respective owners. which are under common ownership, control or contractual arrangement with the RCI Weeks Member's Home Resort. © 2002 Resort Condominiums International, LLC. All rights reserved. This booklet may not be reproduced in whole or HOST RESORT — A resort to which an RCI Weeks Member part without the prior written permission of Resort travels on an Exchange vacation. Condominiums International, LLC. INTERNAL EXCHANGE — That Exchange which occurs when the week owned by an RCI Weeks Member is exchanged for a week in the same Home Resort or same Home Resort Group. MAXIMUM OCCUPANCY — The maximum number of persons that a resort unit may accommodate. 1 an independent exchange service company and is not owned, DISCLOSURE GUIDE operated or controlled by an Affiliated Resort developer, seller, TO VACATION EXCHANGE managing entity or vacation ownership plan participating in the RCI Weeks Exchange Program. Neither RCI nor any of The “Disclosure Guide to Vacation Exchange” is provided to its officers or directors has any legal or beneficial explain the RCI Weeks Exchange Program offered to Vacation interest in any developer, seller, or managing entity Owners by Resort Condominiums International, LLC (“RCI”). participating in the RCI Weeks Exchange Program. RCI Vacation Owners are urged to carefully review this information is a wholly owned subsidiary of Cendant Corporation to ensure full understanding of the terms, conditions, (“Cendant”) which also owns RCI Resort Management, operation and use of the RCI Weeks Exchange Program. Inc. (“RCIRM”), a resort management company, Fairfield Resorts, Inc. (“Fairfield”) and Equivest RCI is a Delaware limited liability company with its principal Finance, Inc. (“Equivest”), timeshare development offices located at: companies, and their respective subsidiaries and Global Registry, LLC (“Global Registry”), an exchange 9998 N. Michigan Road service company. Some officers and/or directors of Carmel, IN 46032 Cendant may from time to time serve as officers and/or directors of RCI, RCIRM, Fairfield, Equivest The RCI Exchange Program is processed at this principal and/or Global Registry, and vice versa. RCIRM, office location. RCI is a wholly-owned subsidiary of Cendant Fairfield and/or Equivest resorts are marked with a Corporation, a Delaware corporation. plus symbol “+” in the Resorts and Members lists. Corporate Officers are: Because vacation exchange is used on an intermittent basis, Stephen P. Holmes, Chairman purchasers of Vacation Time or membership should select Kenneth N. May, President and Chief Executive Officer resorts which best meet their ongoing vacation needs. Your John E. Borger, Executive Vice President, General Counsel decision to purchase Vacation Time should be based and Assistant Secretary primarily upon the benefits to be gained from the Joel R. Buckberg, Executive Vice President and ownership, use and enjoyment of your Vacation Time Assistant Secretary at the Affiliated Resort and not upon the anticipated James E. Buckman, Executive Vice President and benefits of the RCI Weeks Exchange Program. The Assistant Secretary Affiliated Resort at which you purchase your Vacation Duncan H. Cocroft, Executive Vice President and Treasurer Time is solely responsible for its financial viability and Peter Giamalva, Executive Vice President the quality of its accommodations, facilities, amenities, Philippe Guionnet, Executive Vice President and management and services. Chief Information Officer John Paul Nichols, Executive Vice President David C. Roe, Executive Vice President PARTICIPATION IN THE RCI WEEKS Kevin M. Sheehan, Executive Vice President Craig D. Steeneck, Executive Vice President and EXCHANGE PROGRAM Chief Financial Officer Vacation Owners enter into a contract to purchase Vacation Eric J. Bock, Senior Vice President and Secretary Time with the developer or seller of the Vacation Time. The Mary Falvey, Senior Vice President membership agreement between the Vacation Owner and RCI Gordon Gurnik, Senior Vice President is a separate and distinct contract from the Vacation Owners’ Jean V. Hoagland, Senior Vice President, Events Marketing agreement with the developer or seller of a vacation plan. Frank Morrisroe, Senior Vice President Mark M. Nuzzo, Senior Vice President A Vacation Owner is entitled to become an RCI Weeks Milton Pedraza, Senior Vice President Member and to participate in the RCI Weeks Exchange Vincent Ventura, Senior Vice President, Tax Program if the following four conditions are met: Thomas Anderson, Vice President Joseph Huber, Vice President, Tax 1. There must be a Resort Affiliation Agreement between Steven R. Jones, Vice President, Special Events RCI and the Home Resort or Home Resort Group. Gail Mandel, Vice President 2. The resort must be operated in a commercially Lynn A. Feldman, Assistant Secretary reasonable fashion that will enable it to meet its Ilese Meltzer Flamm, Assistant Secretary obligations and must otherwise be in compliance Mark E. Johnson, Assistant Treasurer with all terms of the Resort Affiliation Agreement. Richard S. Meisner, Assistant Secretary John M. Peterson, Assistant Treasurer 3. RCI must have received and accepted either a Garry Stamm, Assistant Secretary. completed Enrollment Application or a corporate participation enrollment on behalf of the Vacation RCI provides the RCI Weeks Exchange Program and other Owner, together with other pertinent information related services and benefits to RCI Weeks Members. RCI is concerning the Vacation Time purchase. 2 4. The current initial subscription fee for ENDLESS VACATION magazine must have been submitted to USING THE RCI WEEKS EXCHANGE PROGRAM RCI by the developer or Vacation Owner. The RCI Weeks Exchange Program utilizes a “deposit” and The collection and submission to RCI of the foregoing “withdrawal” system. To make a withdrawal, an RCI Weeks subscription fee payment, together with required ownership Member must first deposit Vacation Time that is available for information, allows RCI to waive the initiation fee (currently exchange. $200) that is otherwise required for RCI Weeks