RESERVATION PROCEDURES FOR MARRIOTT VACATION CLUB DESTINATIONS

Transcription

1 RESERVATION PROCEDURES FOR MARRIOTT VACATION CLUB DESTINATIONS April 30, 2015

2 RESERVATION PROCEDURES FOR MARRIOTT VACATION CLUB DESTINATIONS Introduction These Reservation Procedures for Marriott Vacation Club Destinations ( Reservation Procedures ) are specifically promulgated for the reservation system ( Trust Reservation System ) for the MVC Trust ( Trust ) by Marriott Ownership Resorts, Inc., ( Developer ) and the board of directors ( Trust Board ) of the MVC Trust Owners Association, Inc. ( Association ). Subject to the terms of these Reservation Procedures, the Association or its designated delegee may further modify these Reservation Procedures from time to time in accordance with applicable law. I. DEFINITIONS Capitalized terms shall have the meaning set forth on Schedule 1. II. EXERCISE OF TRUST RESERVATION SYSTEM PRIVILEGES Trust Owners may reserve and use the Accommodations and facilities that are a part of the Trust in accordance with the Trust Reservation System. Participation in the Trust Reservation System is appurtenant to the ownership of an Interest and automatically terminates for a given Trust Owner if the Trust Owner voluntarily or involuntarily transfers the Trust Owner s Interest and owns no other Interest. The Trust Manager has the specific right to implement procedures which will facilitate the reservation of the Accommodations and facilities that are part of the Trust. III. PROGRAM OPERATION AND POINTS A. Management. The Trust Reservation System shall be operated and managed by the Trust Manager pursuant to the terms of the Trust Plan Documents, and all of the rights, duties, and obligations of the Trust Manager under these Reservation Procedures may be delegated to an Exchange Company, in whole or in part, unless otherwise required to be exercised by the Trust Manager by the Trust Plan Documents or applicable law. The rights, duties, and obligations of the Trust Manager have currently been delegated to Program Manager. Program Manager is expressly authorized to take such actions as it deems to be necessary or appropriate for the operation of the Trust Reservation System, including, without limitation, the performance of all duties outlined in these Reservation Procedures. Program Manager may periodically make adjustments or amendments to the Trust Reservation System and these Reservation Procedures in order to respond to actual Trust Owner use patterns, changes in Trust Owner demand for the Accommodations, and other pertinent information. Developer or the Trust Board, as applicable, will take into consideration the demand for and the availability of existing Accommodations prior to making any additions, deletions, or substitutions of Accommodations. The Trust Reservation System currently utilizes software, hardware, and related equipment and technology owned, licensed, or leased by the Program Manager or an Exchange Company. The rights granted to Trust Owners to use the Trust Reservation System pursuant to these Reservation Procedures do not create for Trust Owners or any other party any ownership interest or other right, title, or interest in or to any software, hardware, equipment or technology utilized by or in connection with the Trust Reservation System. B. Distribution. For administrative convenience in the operation of the Trust Reservation System and for determination of the respective rights of Trust Owners to enjoy the benefits of the Trust Reservation System, each Trust Owner will be assigned a Distribution each Use Year. The Distribution

3 represents the reservation rights of the Trust Owner s Interests during a particular Use Year in relation to other Interests existing in the Trust Reservation System during that Use Year. The Points necessary to reserve a Use Period are identified on the Point Schedule. Program Manager will review the Point Schedule at least annually and amend the Point Schedule as necessary to maintain an equitable distribution of the usage requirements based on various factors such as relative daily and seasonal demand, Accommodation capacity, size, view, and furnishings, and other valuation parameters established by Program Manager or as might be required by law. Subject to the limited calendar adjustments described in the following paragraph, any increase or decrease in the number of Points for Use required to reserve a designated Use Period pursuant to Program Manager s right to amend the Point Schedule as set forth in this paragraph must be offset by a corresponding decrease or increase to the Points for Use for other Use Period(s) occurring during the same year as the designated Use Period. Points for Use for a given calendar year will fluctuate from year to year as a result of the number of weekends that occur during that year, leap years, the occurrence of Week 53 as defined in the Component Declarations, and which day of the week a holiday occurs. As a result of these fluctuating factors and differing demand which occurs because of the calendar permutations, the number of Points for Use may fluctuate for a given Use Period; provided, however, that the Points for Use for a Use Period in a specific calendar year that has the same factors as another specific calendar year, may only be increased or decreased pursuant to the preceding paragraph. Program Manager may also temporarily discount the number of Points otherwise required on the Point Schedule from time to time to reduce the number of Points for Use required to reserve specific Use Periods at specific Accommodations in the event Program Manager deems such discounts beneficial to the Trust Reservation System. Such temporary adjustments of the Point Schedule shall not require an increase in the number of Points required to reserve other Use Periods within the Trust Reservation System. Modifications made to the Point Schedule pursuant to this Section shall not require approval by the Trust Owners or amendment of these Reservation Procedures. Unless banked as may be permitted by these Reservation Procedures, if a Trust Owner fails to use any or all of a Trust Owner s Distribution during a given Use Year the Points allocated during such Use Year expire and the Trust Owner may not use that Use Year s unused Points during succeeding Use Years. A Trust Owner may use borrowed Points from the following Use Year s Distribution and any banked Points to reserve a Use Period(s) during the appropriate Reservation Window. C. Use of Points for Use Periods. Trust Owners may use Points allocated with respect to a given Use Year to reserve available Use Periods that occur during that Use Year, to arrange for Advance Priority Reservations, Priority 1 Reservations, Priority 2 Reservations, Priority 3 Reservations, or reservations during Open Reservation Time, based on the number of Interests owned by the Trust Owner. With the exception of Points that have been banked for use in subsequent Use Years, Points that are from a particular Use Year s Distribution must be used for the reservation and use of a Use Period which occurs during that Use Year. When confirming a reservation, Points will be deducted from the Points that will expire soonest. All or a portion of the Distribution may be used to make reservations for one or more of: (i) the Trust Owner; (ii) Family Members or Guests staying in separate Accommodations at the same Component during the same period as a Trust Owner residing there; or (iii) Family Members or Guests staying in an Accommodation without the Trust Owner present. All reservations must be made by a 2

4 designated Delegate. Program Manager retains the right, to be exercised in Program Manager s reasonable discretion, to limit the number of Accommodations a Trust Owner may reserve for use by Family Members or Guests, regardless of the number of Points the Trust Owner has available for use. No additional Points are required to reserve Accommodations for a Trust Owner accompanied by Family Members or Guests in the same Accommodation as the Trust Owner. D. Purchase of Additional Points. If a Trust Owner does not have sufficient Points to make a desired reservation during a given Use Year, the Trust Owner may purchase an additional Interest, if available, to increase the Trust Owner s total amount of Points. E. Use of Remaining Points. The balance of a Trust Owner s Distribution (after the Trust Owner has used a portion of such Points to access a Use Period(s)) will remain available to the Trust Owner for use in reserving additional Use Periods in the current Use Year or may be banked for use in subsequent Use Years. Unless banked for use in subsequent Use Years, such balance will remain available for use only until the end of that current Use Year, at which time any unused Points will expire. There is no guarantee that a Trust Owner will be able to use all of the Points in a Trust Owner s Distribution each Use Year because the ability of a Trust Owner to use all of the Trust Owner s Points in a given Use Year will depend on: (i) the Use Periods reserved by the Trust Owner, (ii) the Use Periods reserved by other Trust Owners, and (iii) the number of Points banked for use in subsequent Use Years. Consequently, Points may remain in the Trust Owner s Distribution at the end of a given Use Year which are insufficient to reserve any Use Period and, thus, the Trust Owner will not be able to use such Points, and will not be permitted to carry over the unused, unbanked Points to the next Use Year s Distribution. A Trust Owner s ability to reserve a Use Period in a particular Accommodation or Component will depend on, among other factors, the number of Points required to reserve the Use Periods in the various Accommodations that have been committed to the Trust Plan, the number of Points available to the Trust Owner at the time of the reservation request, and other Trust Owner reservations that may have preceded the requested reservation. Additionally, the ability of a Trust Owner to reserve a Use Period at a particular Component may be severely limited due to the limited number of Accommodations that have been committed to the Trust Plan at that Component. Please refer to the Tabular Description of Component Sites attached as an exhibit to the Public Offering Statement for the Trust Plan for more information regarding the number of Accommodations available at any particular Component. Neither Program Manager, Developer, nor any other party can guarantee the fulfillment of a specific reservation request. F. Banking Points. Points assigned to Standard Owners, Select Owners and Executive Owners for a given Use Year may be banked by the Trust Owner for use during the immediately following Use Year. Points assigned to Presidential Owners for a given Use Year may be banked by the Trust Owner for use during the immediately following Use Year and the first six (6) months of the Use Year thereafter. Points assigned to Chairman s Club Owners for a given Use Year may be banked by the Trust Owner for use during the immediately following two (2) Use Years. Once Points have been banked for use during a subsequent Use Year, the banked Points may only be used to make reservations during the Use Year or Use Years, as applicable, for which the Points were banked and may not be withdrawn by the Trust Owner for use during any other Use Year. Failure to use Points during the Use Year or Use Years, as applicable, for which they are banked will result in the expiration of those Points as set forth in Section III.B. of these Reservation Procedures. Unless further restricted or limited as provided in Section III.F., Standard Owners and Select Owners may bank the applicable Trust Owner s Points from twelve (12) months until six (6) months before the expiration date of such Points. Standard Owners and Select Owners Points may not be 3

5 banked any less than six (6) months prior to their expiration date. Executive Owners, Presidential Owners and Chairman s Club Owners may bank the applicable Trust Owner s Points from twelve (12) months until four (4) months before the expiration date of such Points. Executive Owners, Presidential Owners and Chairman s Club Owners Points may not be banked any less than four (4) months prior to their expiration date. Trust Owners must be current on all fees and dues owed by the Trust Owner to the Association and Program Manager, if any, to be eligible to bank any Points. Banked Points may not be transferred and purposes for which banked Points may be used may be limited to Program Manager from time to time in Program Manager s sole discretion. Points transferred into a Trust Owner s Holding Account and Single Use Points are not eligible for banking. G. Borrowing Points. Unless further restricted or limited as provided in Section III.F., a Trust Owner may borrow all or a portion of the Points allocated for a particular Use Year up to twentyfive (25) months prior to the first day of such Use Year. Borrowed Points may be used to make reservations for Use Periods that occur during the Use Year for which the Trust Owner is currently entitled to make reservations. Borrowed Points may be used for a wait list reservation as set forth in these Reservation Procedures. In the event a reservation request using borrowed Points is not confirmed, the borrowed Points must be utilized prior to the end of the Use Year from which such Points were borrowed and will expire at the end of such Use Year as set forth in Section III.B. of these Reservation Procedures. A Trust Owner who desires to borrow Points may be required to remit an amount to be applied against the following year s maintenance fees and ad valorem taxes, as determined by Program Manager in its sole discretion from time to time and such amounts shall be held in escrow as required by applicable law. Borrowed Points may be used to make an Advanced Priority Reservation. Borrowed Points may not be banked for use in a subsequent Use Year; however, borrowed Points do not expire until the end of the Use Year from which such Points were borrowed. Borrowed Points may not be transferred to other Trust Owners and purposes for which borrowed Points may be used may be limited by Program Manager from time to time in Program Manager s sole discretion. H. Limitations on and Modifications to Banking and Borrowing. Notwithstanding anything set forth in Sections III.F. and III.G. of these Reservation Procedures, the ability of Trust Owners to bank or borrow Points, including, without limitation, the number of Points that may be banked or borrowed at any time by Trust Owners and the number of banking and borrowing transactions that may occur for any given Use Year, may be limited or expanded by Program Manager in its sole discretion. Program Manager also reserves the rights to suspend, terminate, or limit all banking and borrowing of Points at any time, or to increase the time periods during which banking or borrowing is permitted, and to charge fees to Beneficiaries for each banking or borrowing transaction conducted by the Beneficiaries. I. Use of Developer and Program Manager Points. Developer and Program Manager (or their designees) have the exclusive right to utilize Points assigned to Developer s or Program Manager s respective Interests or any other Points that Developer or Program Manager are entitled to use for any purpose in their discretion, including, but not limited to, marketing, selling, or promoting the Trust Plan or other vacation products offered by or through Developer or Program Manager, extending rights for purposes of employee, customer or public relations, or utilizing Use Periods or Points in manners which will enhance or expand the Trust Plan. Program Manager and Developer (or their designees) are specifically entitled to charge Trust Owners for the use of any Points that are allocated to or controlled by Program Manager or Developer for the use of the Accommodations or other benefits offered or made available through the Trust Reservation System. Program Manager may fulfill a Trust Owner s request to access Accommodations or other benefits by charging for one-time use of Points in accordance with the following priorities (in the order provided): (i) Program Manager s right to charge for any Points allocated to or controlled by Program Manager; and (ii) Developer s right to charge for any Points allocated to or controlled by Developer. The rights reserved to Developer and Program Manager in this paragraph may be assigned by Developer and Program Manager. 4

6 J. Transfer of Points. Subject to limitations implemented from time to time by Program Manager, as Program Manager deems necessary and reasonable, Trust Owners may transfer Points, excluding Single Use Points and banked or borrowed Points, for immediate use in any increment to other Trust Owners. Transferred Points will retain their original expiration date and transferred Points may not be banked for future use and may not be transferred to another Trust Owner after the initial transfer. If a reservation made with transferred Points is cancelled, the transferred Points will be subject to the cancellation policies set forth in these Reservation Procedures. Single Use Points are not eligible to be transferred. Both the transferring and receiving Trust Owners must be current on all fees and dues owed by the Trust Owner to the Association and Program Manager, if any, to facilitate a transfer of Points pursuant to this Section. Program Manager may require written confirmation from the transferring Trust Owner of any transfer of Points. K. Wait Lists. Subject to availability and subject to Program Manager s right to limit or eliminate wait list requests, if a reservation requested by a Trust Owner is not available at the time of request, the Trust Owner may request to be placed on a wait list for such reservation. Wait list requests may include, but not be limited to, Accommodation size, number of Accommodations, and view type, if applicable. Wait list requests shall be subject to minimum Point requirements and Reservation Window requirements as set forth in these Reservation Procedures. Wait list requests for Luxury Property, other than Accommodations located in The Ritz-Carlton Club, Vail, will not be accepted prior to six (6) months in advance of the first day of a given Use Period. Program Manager may accept wait list requests for all other Accommodations twelve (12) months in advance of the first day of a given Use Period. If a wait list requested reservation becomes available, the reservation will be confirmed upon availability and notification of the confirmation will be sent to the requesting Trust Owner by electronic mail or by telephone in accordance with these Reservation Procedures. Cancellation of any wait list reservation that is confirmed must occur with forty-eight (48) hours of the Trust Owner being notified of the confirmation and any such cancellation shall be subject to the terms and conditions of Section IV.D. of these Reservation Procedures. Upon the cancellation of a confirmed wait list reservation, any previously made wait list requests can be reinstated. Trust Owners may enter a wait list request for a single Use Period which lists more than one (1) Component that will be acceptable to the Trust Owner for the requested Use Period, subject to any limitations placed on the number of Components that may be included in such requests. Such requests for multiple Components for a single Use Period shall be considered single requests for purposes of determining the number of concurrent wait list requests that a Trust Owner has at any given time. In the event multiple Components are listed on a single request the Trust Owner must have available for use a sufficient number Points to reserve the Component requiring the highest number of Points. Wait list requests will be held until the expiration date of such wait list request as determined by the Trust Owner at the time the wait list request is made. Upon the expiration of the wait list request, the wait list request will be cancelled; provided, however, if the wait list request was for additional nights at a Component already reserved by the Trust Owner, the wait list request will be honored if such additional nights become available any time prior to the Trust Owner s check-in at the Component and the Trust Owner possesses sufficient Points. Trust Owners may have multiple wait list requests for different Use Periods provided that the total number of Points of all concurrent requests may not exceed the total Points available for use by the Trust Owner at the time such requests are made. Notwithstanding anything in these Reservation Procedures to the contrary, Program Manager reserves the right to limit wait list requests to certain levels of membership from time to time. Program Manager reserves the right to establish priority policies which grant priority to wait list requests entered by certain levels of membership or other specified groups of Trust Owners. Any such priority policies will be subject to any limits, parameters, terms or conditions established by Program Manager for such policies from time to time. Trust Owners must be current on all fees and dues owed by the Trust Owner to the Association and Program Manager, if any, to make or maintain any wait list requests and Program Manager may cancel any pending requests if a Trust Owner is delinquent on any fees or dues owed by the Trust Owner. 5

7 IV. PROCEDURES FOR RESERVING USAGE A. Reservation Services. All Trust Owner reservation requests, including requests from Trust Owners who desire to reserve the use of Accommodations in the Trust, are taken by Program Manager or its designees. Trust Owners must contact Program Manager to make reservations in accordance with the reservation request priorities described in Article V below. A Trust Owner s available Distribution will be reduced by the total number of Points necessary to make a reservation for requested Use Periods based on the Point Schedule. 1. Reservation Requests. To reserve a Use Period, a Trust Owner must determine if the Trust Owner has the necessary Points to reserve the desired Use Period. To determine the number of Points necessary to make a reservation, the Trust Owner may utilize the then-current Point Schedule. Next, a Trust Owner must submit a reservation request to Program Manager by such means of communication as may be made available by Program Manager from time to time. Such means of communication may, but will not necessarily include, the following: U.S. mail, facsimile, , internet, and telephone. Details of such means of communication will be made available to Trust Owners by Program Manager from time to time. 2. Designation of Delegates. The owner(s) of an Interest owned by more than one person or by an entity such as a family trust, limited liability company, or the like, shall designate at least one (1) and up to four (4) Delegates from time to time by notifying Program Manager through written notice or other approved means. Individual owners of Interests may, but are not required to, designate at least one (1) and up to four (4) Delegates from time to time by notifying Program Manager through written notice or other approved means. Notices of Delegates shall be executed (or verified to the satisfaction of Program Manager if delivered by means other than in writing) by all individuals holding the Interest or by an authorized representative of the business entity, as applicable. Delegates shall be authorized to make reservations, receive confirmations and other services, perform administrative functions with respect to the Interest owned, and exercise other privileges as permitted by Program Manager from time to time. Program Manager may rely, without liability, on the requests made by Delegates of record with the Program Manager. Program Manager may charge an administrative fee, as Program Manager may determine from time to time, for each request to change, add, or delete a Delegate designation. In the event of a conflict among the owners of an Interest with respect to the designation of Delegate, Program Manager may make its determination based on the Association s files and records. In the event a designated Delegate owns Interests other than the Interest for which the Delegate has been designated, the Points assigned to the Delegate s Interests may not be combined with the Points assigned to the Interest for which the Delegate has been designated for any purposes including, without limitation, making reservations. B. Delinquency; Advance Payments. 1. Delinquency. Subject to applicable law and the provisions of the Trust Plan Documents, only Trust Owners in Good Standing may exercise Trust Ownership privileges. Program Manager has the right to deny or cancel a reservation request or wait list request if the Trust Owner is not a Trust Owner in Good Standing. A Trust Owner who is not a Trust Owner in Good Standing has no right to reserve a Use Period, and any previously confirmed Use Period reservation may be cancelled by Program Manager. No further reservations may be made until any delinquency is satisfied in full. Program Manager may collect any delinquent fees and dues, special assessments, or purchase money payments owed by the Trust Owner, by credit card or other form of payment as determined by Program Manager from time to time. 2. Advance Payments. If the Trust Manager has not yet assessed maintenance fees and ad valorem taxes for the Use Year in which a reservation is requested, the Trust Owner may be required 6

8 to remit to Program Manager, as a condition to acceptance by Program Manager of the reservation request, an amount to be applied against the following year s maintenance fees and ad valorem taxes, as determined by Program Manager in its sole discretion. Any such estimated amounts collected shall be held in escrow by Trust Manager as required by applicable law. C. Confirmations; Accommodation Preferences. Confirmations for reservations will be sent to the appropriate Delegate by Program Manager by such means of communication as determined by Program Manager in its sole discretion from time to time (which may include the following: U.S. mail, facsimile, , internet, or telephone). Program Manager will attempt to accommodate all requests to reserve particular Use Periods and Accommodations based upon availability, on a first-come, first-served basis (and any other procedures determined by Program Manager). Program Manager does not guarantee that any particular Use Period will be available. Reservation requests will be taken on a firstcome, first-served, subject-to-availability basis, within the applicable Reservation Window, in accordance with the reservation priorities set forth on Schedule 2. From time to time, certain Use Periods or Accommodations may not be available for reservation or use by Trust Owners as a result of maintenance being performed by the Association, Trust Manager, or a Component Association or manager. Moreover, in the case of extended maintenance or major renovations, certain Accommodations or Components may not be available for use for extended periods of time. Program Manager reserves the right to create alternative confirmation periods with regard to Components which may in the future become a part of an Exchange Program. Additionally, there may be different methods by which interests and allocations are assigned within a particular Component. Program Manager has the specific right to implement procedures which will facilitate reciprocal, exchange, or similar uses by and among the Components affiliated with the Exchange Program offered by Program Manager. D. Cancellations and No-Shows. 1. If a Trust Owner wishes to cancel or release a confirmed reservation of a Use Period, and Program Manager receives written cancellation (or other means of verifiable communication acceptable to Program Manager) at least sixty-one (61) days prior to the first day of such confirmed Use Period, no cancellation fee will apply, and such cancellation will result in unrestricted restoration of the related Points to the Trust Owner for further use during that Use Year (or if borrowed Points, for use prior to the end of the Use Year from which such Points were borrowed) ; provided, however, that in the case of an Advance Priority Reservation, Points required to obtain such Advance Priority Reservation over and above the number of Points that would be required to reserve the same Accommodations during the Priority 2 Period, Priority 3 Period, or Open Reservation Period will be restored to the Trust Owner s Holding Account, subject to the restrictions on Holding Accounts as set forth in these Reservation Procedures. 2. If Program Manager receives written cancellation sixty (60) days or less prior to the first day of a confirmed Use Period, no cancellation fee will apply; however, such cancellation will result in assignment of the related Points, including borrowed Points, to the Trust Owner s Holding Account, subject to the restrictions on Holding Accounts as set forth in these Reservation Procedures; provided, however, that in the case of an Advance Priority Reservation, Points required to obtain such Advance Priority Reservation over and above the number of Points that would be required to reserve the same Accommodations during the Priority 2 Period, Priority 3 Period, or Open Reservation Period will not be restored and will be forfeited by the Trust Owner. Borrowed Points in a Trust Owner s Holding Account expire at the end of the Use Year from which such Points were borrowed. 7

9 3. If a reservation is modified prior to the first day of a confirmed Use Period to result in a shorter duration than would have been permitted at the time the reservation was made, any Points restored to the Trust Owner shall be placed in the Trust Owner s Holding Account, subject to the restrictions on Holding Accounts as set forth in these Reservation Procedures. 4. If a Trust Owner cancels a reservation or modifies a reservation by shortening the duration of the reservation on or after the first day of a confirmed Use Period, all Points utilized for such reservation (if cancelled) or attributed to the days that were eliminated from the reservation (if shortened) shall be forfeited by the Trust Owner and will not be restored to the Trust Owner or the Trust Owner s Holding Account. If the Trust Owner does not cancel the reservation but does not check in on the first day of a confirmed Use Period, the reserved Use Period will be held for the Trust Owner so that the Trust Owner may check in at any time during the reserved Use Period. 5. If a Trust Owner sells, assigns, or otherwise transfers ownership of any of Trust Owner s Interests, and the Points allocated to such Interests have been used to make a reservation, or the Trust Owner provides notice to the Program Manager of a pending sale, assignment, or transfer of such Interest, Program Manager may cancel all pending reservations made with the Points allocated to such Interest. Program Manager, in its discretion, is entitled to amend these Reservation Procedures to modify or establish additional cancellation policies and charge cancellation fees from time to time. E. Check-In and Check-Out; Early Check-Out. Each Component may have the right to establish the check-in and check-out times for such Component. Consequently, each Component may have different check-in and check-out times, and Trust Owners will be restricted to the established times. Other than as may be provided in these Reservation Procedures, all of the Points applied to a confirmed reservation are considered used starting on the first day of the reserved Use Period. Trust Owners are not entitled to a partial refund of Points if the Trust Owner checks in after the first day of the confirmed Use Period or checks out before the scheduled departure date. F. Pre-Arrival Notification. Program Manager will confirm Use Period dates at the time a reservation is confirmed for a Trust Owner. A Trust Owner requesting Accommodations for a Family Member or Guest must provide Program Manager with such Family Member s or Guest s name, address, address, and telephone number at least thirty (30) days prior to the requested Use Period, or, for Open Reservation Time usage, at the time of such confirmation if it occurs within thirty (30) days of arrival, so that Program Manager can forward an appropriate confirmation notice to the Trust Owner, Family Member, or Guest, as applicable. Failure to provide the Family Member s or Guest s name, address, address, and telephone number by such time may result in cancellation of the reserved Use Period by Program Manager. The pre-arrival notification set forth in this paragraph is only required if a Family Member or Guest is utilizing an Accommodation other than the Accommodation in which the Trust Owner is staying. G. Fees or Charges. As set forth in the Affiliation Agreement with Program Manager, Program Manager has the right to charge transaction fees (including, but not limited to, cancellation fees) as it deems appropriate in its sole discretion from time to time. Trust Owners shall be responsible for all unpaid fees assessed in accordance with these Reservation Procedures or any charges resulting from use of a Use Period including charges relating to damage or otherwise, and including those fees not paid by Family Members or Guests. Currently, the only transaction fees charged by Program Manager are an initiation fee (upon the transfer of an Interest) as detailed in Section IV.H. and a membership education fee (which is remitted to the Association) as detailed in Section VI.D. 8

10 H. Exchange Program Benefits. An Exchange Company may offer Special Benefits through an Exchange Program to certain Trust Owners, from time to time. Such Special Benefits may vary, are not part of the Trust Reservation System, and are provided solely as part of the applicable Exchange Program at the sole discretion of applicable Exchange Company. Each Exchange Company has the right to establish such rules and regulations as it deems necessary to adequately govern Trust Owner access to such Special Benefits, which may include certain fees. In addition, each Exchange Company (including Program Manager), has the right to restrict use of any Special Benefits offered by the Exchange Company to certain Trust Owners, including, without limitation, only to those Trust Owners who purchase their Interests from Developer or any broker authorized from time to time as an Approved Broker by Developer. Any offered Special Benefits are subject to separate terms and conditions, which may be changed, substituted, or eliminated without prior notice. Some Special Benefits may be provided by independent third parties and the offering Exchange Company may expressly disclaim responsibility for the acts or omissions of any persons or entities providing such Special Benefits. Special Benefits (other than the ability to occupy an Accommodation through an exchange) are only available to Guests that are accompanied by a Trust Owner or a Family Member of the Trust Owner. Upon the sale of an Interest to a party other than a Family Member of the Selling Owner (as hereinafter defined), Program Manager may require, to the extent permitted by law, the payment of an initiation fee. Until payment of the initiation fee is received (or waived by Program Manager), Program Manager may restrict the purchaser of such Interest(s) from reserving any non-trust Accommodations with the Points associated with such Interest(s) except during the Open Reservation Period; however, payment of the initiation fee will restore the ability to make reservations during the Priority 1 Period, Priority 2 Period, and Priority 3 Period. V. RESERVATION REQUEST PRIORITIES Subject to the provisions of this Article, reservation requests for Use Periods will be taken on a first-come, first-served subject to availability basis, within the applicable Reservation Window, in accordance with the reservation priorities set forth on Schedule 2. ANY PRIORITY A TRUST MEMBER MAY HAVE FOR THE RESERVATION OF USE PERIOD(S) WILL END UPON THE BEGINNING OF THE SUBSEQUENT RESERVATION WINDOW. Prior to confirmation of a reservation of a specific Use Period in an Accommodation at a specific Component, a reservation cannot be assured as availability will vary. The earlier a reservation request is submitted within the relevant Reservation Window, the better the chance that a reservation confirmation will be secured. Trust Owners are encouraged to submit requests as far in advance as possible, within the Reservation Window, to obtain the best choice of Accommodations. IF A TRUST MEMBER OWNS LESS THAN A BASE INTEREST, THE TRUST MEMBER WILL ONLY BE ENTITLED TO MAKE RESERVATIONS DURING THE OPEN RESERVATION PERIOD. Trust Manager and Program Manager shall have the right to forecast anticipated reservation and use of the Accommodations of the Trust Plan and are authorized to reasonably demand balance, reserve, deposit, or rent the Accommodations for the purpose of facilitating the use or future use of the Accommodations or other benefits made available to Trust Owners through the Trust Plan or an Exchange Program. Program Manager has the right to establish priority lists, lottery systems, or other alternative methods of reserving Accommodations in an effort to ensure the fair and equitable reservation and use of Accommodations during holidays, events, and other high demand periods. If implemented, access to certain Use Periods by a Trust Owner may be restricted in a given year based upon the Trust Owner s ranking in a lottery or some other allocation methodology established by Program Manager. Program Manager may establish an administrative fee for this service. Program Manager may restrict the number 9

11 of weeks or days that may be reserved by a Trust Owner during holidays, events, or other high demand periods and Program Manager may create alternate reservation procedures and the Point Schedule may be revised on a Market-specific or Component-by-Component basis to account for discrepancies in Markets, legal structures, travel patterns, or other factors as determined by Program Manager from time to time in its sole discretion. Program Manager also has the right to establish certain priorities or alternate methods of reserving Accommodations for, or designate specific Accommodations or Use Periods that may only be reserved by Trust Owners during the first twelve (12) months of the Trust Owners participation in the Reservation System for purposes of educating and facilitating the use of the Reservation System by such Trust Owners. Advance Priority Reservations may be made by Standard Owners who were granted the right to make an Advance Priority Reservation by Program Manager in exchange for the number of Points for Use required for the exercise of such right. The number of Points required to reserve a Use Period with an Advance Priority Reservation may be up to twenty-five percent (25%) greater than the number of Points that would otherwise be required to reserve the same Use Period during the Priority 2 Period, Priority 3 Period, or Open Reservation Period. The number of Points required for Advance Priority Reservations may be adjusted by Program Manager from time to time to account for particular Components, seasonality, demand patterns, or other factors. Program Manager may also limit the number of Advance Priority Reservations made during any Use Year to ensure the fair and equitable use of Accommodations. Program Manager may apply additional weekend reservation restrictions on a Market-specific or Component-by-Component basis and may restrict the number of Accommodations that may be reserved by a Trust Owner for weekend-only reservations at any one time. VI. MISCELLANEOUS A. Ownership Recognition Levels. Trust Owners meeting the qualifications established by Program Manager from time to time shall be eligible to become Select Owners, Executive Owners, Presidential Owners or Chairman s Club Owners, as applicable, and shall be entitled to the benefits and privileges afforded to Select Owners, Executive Owners, Presidential Owners or Chairman s Club Owners as determined by Program Manager. In addition to other qualifications as may be established by Program Manager from time to time, to become a Select Owner, Executive Owner, Presidential Owner or Chairman s Club Owner a Trust Owner may be required to own Interests (purchased from Developer or other party approved by Program Manager) with an aggregated minimum number of Points assigned to such Interests as established by Program Manager from time to time. The number of Points or other criteria required to render a Trust Owner eligible to become a Select Owner, Executive Owner, Presidential Owner or Chairman s Club Owner may be revised by Program Manager from time to time and Program Manager reserves the right to eliminate or add any ownership recognition levels or benefits and privileges as Program Manager may determine in its sole discretion. In the event the minimum number of Points required to maintain Select Owner, Executive Owner, Presidential Owner or Chairman s Club Owner eligibility is raised above the number of Points allocated a Trust Owner s Interests at any given time, the Trust Owner will be entitled to enjoy the benefits and privileges afforded to Select Owners, Executive Owners, Presidential Owners or Chairman s Club Owners, as applicable, until the end of the calendar year in which the Trust Owner no longer meets the respective Select Owner, Executive Owner, Presidential Owner or Chairman s Club Owner eligibility requirements. If the Trust Owner purchases Interests with sufficient Points to reestablish Select Owner, Executive Owner, Presidential Owner or Chairman s Club Owner eligibility prior to the end of such calendar year, the Trust Owner shall maintain eligibility to be a Select Owner, Executive Owner, Presidential Owner or Chairman s Club Owner, as applicable. In the event that the minimum number of Points required to maintain Select Owner, Executive Owner, Presidential Owner or Chairman s Club Owner eligibility is greater than the number of Points allocated to a Trust Owner s Interests due to the transfer of any of Trust Owner s Interests, Trust Owner s eligibility to enjoy the benefits and 10

12 privileges afforded to Select Owners, Executive Owners, Presidential Owners or Chairman s Club Owners shall not be extended for any period and shall be terminated on the first day of the month following the applicable transfer of the Trust Owner s Interests. Any Points assigned to an Interest that is owned by more than one Trust Owner shall be included in calculating the number of Points attributed to each Trust Owner owning such Interest when determining whether such Trust Owners are eligible to become Select Owners, Executive Owners, Presidential Owners or Chairman s Club Owners. Select Owners, Executive Owners, Presidential Owners or Chairman s Club Owners may be assessed additional fees or charges for certain benefits and privileges granted to Select Owners, Executive Owners, Presidential Owners or Chairman s Club Owners, as applicable, and as determined by Program Manager from time to time. Program Manager reserves the right to deny Select Owner, Executive Owner, Presidential Owner or Chairman s Club Owner status to any Trust Owner or group of Trust Owners which Program Manager determines, in Program Manager s sole discretion, has structured its ownership in a manner to achieve such status by circumventing the intent of only recognizing Trust Owners or groups of Trust Owners who are joined by customarily recognized affinities. B. Residential Use and Prohibition on Commercial Use. Accommodations, Special Benefits, and Use Periods may not be used for any commercial purpose. This prohibition on commercial use includes, but is not limited to, any illegal activity or a pattern of occupancy, rental, leasing, or use by a Trust Owner that Program Manager, in its reasonable discretion, could conclude constitutes a commercial enterprise or practice. In the event a Trust Owner is determined to be reserving or using the Accommodations, Special Benefits, and Use Periods for any commercial purpose Program Manager may immediately cancel any current reservation(s) made by such Trust Owner and may impose such additional penalties or restrictions as determined by Program Manager, in its sole discretion, from time to time. The restrictions of this paragraph do not apply to the Developer, Trust Manager, any Exchange Company, or their affiliates or designees. C. Amendments. These Reservation Procedures may be amended by Program Manager from time to time in accordance with applicable law, which amendments may include, but are not limited to the items set forth in this Section VI.C. Amendments may be adopted by Program Manager for purposes of: (1) creating additional levels or types of memberships and creating or modifying the reservation rights and other privileges granted to the different membership levels; (2) modifying or restricting the benefits and privileges granted to Standard Owners, Select Owners, Executive Owners, Presidential Owners or Chairman s Club Owners; (3) assessing additional fees or charges to Standard Owners, Select Owners, Executive Owners, Presidential Owners or Chairman s Club Owners for benefits and privileges granted to such Trust Owners and revising the amount of such fees and charges from time to time; (4) modifying the Point-level requirements or other criteria established for qualification for Standard Owner, Select Owner, Executive Owner, Presidential Owner or Chairman s Club Owner levels; (5) merging the ownership, membership, recognition, or affinity levels of other timeshare plans, exchange programs, vacation clubs, or similar programs with the Trust Plan; (6) restricting the number of weeks or days that may be reserved for holiday, weekend, event, or other high demand Use Periods; 11

13 (7) modifying or cancelling the availability of Open Reservation Time; (8) modifying the Point Schedule or modifying the number and types of Point Schedules available from time to time; (9) restricting the number of Trust Owners that are permitted to check-in on certain days at a given Component; (10) modifying current check-in times, creating additional check-in times or creating check-in days; (11) modifying the start of a Trust Owner s Use Year or otherwise amending such Use Year; (12) creating alternative confirmation periods with regard to Components which may in the future become a part of the Trust, and implementing procedures to facilitate reciprocal, exchange or similar uses with the Trust; (13) modifying or limiting the number of requests for any wait list and creating additional wait list restrictions or requirements or eliminating wait lists; (14) using electronic methods to communicate with Trust Owners, including, without limitation, communications regarding confirmed reservations and notification of amendments to these Reservation Procedures; (15) creating additional usage products for current or future Components or Accommodations, including, without limitation, fixed, holiday, or event usages; (16) creating or modifying penalties and fees applicable to cancellation or modification of reservations; (17) assessing a special charge or annual fee to Trust Owners residing in countries other than the United States, Canada, and Puerto Rico and/or Trust Owners who reside in the United States, Canada, or Puerto Rico but who have mailing addresses, telephone numbers or facsimile numbers outside of the United States, Canada, or Puerto Rico; (18) creating system-wide reservation procedures which will be consistent with an applicable Exchange Program; (19) creating special exchange relationships between the Trust and any entity or system pursuant to which Trust Owners access selected non-affiliated resorts; (20) establishing priority lists or other alternative reservation methods other than first-come, first-served for high demand Use Periods at a given Component or regional market for the purpose of more equitably permitting Trust Owners to reserve these high demand Use Periods; (21) amending Reservation Windows; (22) establishing a reservation priority system based on, among other things, length of stay; (23) establishing requirements to reserve certain days in combination with one another (e.g., requiring Trust Owners to reserve Friday in order to reserve the following Saturday); (24) creating special Guest of Trust Owner programs (which may include fees) where a Trust Owner s Guest(s) may only occupy certain Accommodations or Use Periods while the Trust Owner is not in residence; 12

14 (25) creating corporate membership programs; (26) allowing programs affiliated with an Exchange Company to make reservations; provided, however, that such access can not be granted earlier than the Reservation Windows applicable to such reservations; (27) adding fixed week reservation preferences, priorities, or rights; (28) restricting the number of Accommodations or Use Periods that may be reserved by a single Trust Owner at any one time; (29) creating restrictions or limitations on the reservation of weekend days on a Component-by-Component basis; (30) creating additional conditions, limitations, or restrictions with respect to Points that are transferred between Trust Owners; (31) altering the minimum length of stay required for reservations of certain Use Periods and requiring minimum length of stay for certain Accommodations; (32) limiting the characteristics of, and creating restrictions on, the use of transferred Points within various reservation windows; (33) revising the days, length-of-stay categories, or other provisions of the Call-In Calendar as set forth in these Reservation Procedures; and (34) making any modifications Program Manager deems appropriate to facilitate the purposes served by the Trust Reservation System or the Reservation Procedures, or which are otherwise determined by Program Manager to be in the best interest of the Trust Owners as a whole. Notice of any amendment shall be made by newsletter, electronic mail, annual mailings or other appropriate means, as permitted by applicable law. In the case of more than one owner or ownership by a business entity, such notice may be provided only to a designated Delegate. D. Effect of Transfer of Trust Owner s Interest. Unless otherwise agreed to in writing by the parties to a sale, assignment, or transfer, if a Trust Owner ( Selling Owner ) sells, assigns, or transfers the Selling Owner s Interest to another party ( New Owner ), the Selling Owner will lose any and all rights to utilize the Points associated with such Interest to reserve the use of a Use Period or to use any previously-reserved Use Period. Each New Owner will be required to remit to the Association (through the Program Manager) a member education fee; provided, however, a member education fee shall not be required to be paid if the New Owner is an existing Trust Owner or a Family Member of the Selling Owner. Program Manager reserves the right to adjust the amount of the member education fee from time to time in Program Manager s sole discretion. Program Manager will, within ten (10) business days of receipt from a New Owner of the member education fee, if required, and a certified copy of the recorded deed transferring an Interest to the New Owner, change Program Manager s official records to reflect such transfer of an Interest from a Selling Owner to a New Owner. Further, until payment of any required member education fee is received, the New Owner will not be entitled to use the Points associated with the acquired Interest(s), and will not be entitled to utilize any Points associated with such Interest(s). Unless otherwise agreed to in writing by the parties, all existing reservations previously made by the Selling Owner will be cancelled. The New Owner will also be given possession of the Selling Owner s Points remaining as of the date of Program Manager s recognition of such transfer. Program Manager shall, from time to time, within ten (10) business days after receipt of written request from any Trust Owner execute, acknowledge and deliver to such Trust Owner or to any existing or prospective purchaser or mortgagee designated by such Trust Owner, a certificate stating the number of Points that the Trust Owner has used and/or has available for use during the current Use Year, any borrowed Points, 13

15 and the details of any reservations currently held by the Trust Owner. Program Manager may charge a fee in connection with providing such a certificate. E. Taxes. Some jurisdictions have imposed a tax on the occupant of resort accommodations. Consequently, any bed tax, transient occupancy tax, or similar tax or imposition that is payable shall, in those circumstances, be the responsibility of the Trust Owner. No representations are made regarding taxes or other impositions due in connection with any reservations, exchanges or the use of Accommodations. Additionally, Trust Owners are responsible for all personal charges (e.g., telephone calls and meals) at the host Component, and any utility surcharge or other charge imposed by a Component, as well as any damage, loss, or theft to the host Component Accommodations or facilities that is caused by the Trust Owner or the Trust Owner s Guest or Family Member. Fees, if any, charged by a Component for the use of some of the amenities or facilities are determined and levied by each Component. Should the Trust Owner desire to use such amenities or facilities, the fees charged by the Component are the responsibility of the Trust Owner. These fees vary from Component to Component, and may be increased from time to time without notice. F. Limitations on Liability. The Association, Trust Manager, Developer, Trustee, and Program Manager s liability in the event that any Accommodations reserved by or on behalf of the Trust Owner are not available for occupancy on the specified check-in date shall be limited to amounts necessary to obtain comparable alternate accommodations, if available, for the Trust Owner or the Trust Owner s Guests or Family Members, as applicable. The Association, Trust Manager, Developer, Trustee, and Program Manager shall not be liable for any additional costs or expenses incurred by a Trust Owner or the Trust Owner s Guest or Family Members including, but not limited to, travel, lodging, meals, or similar expenses. G. Reservation at Underlying Components. In the event that the underlying property that has been submitted to the Trust consists of existing timeshare interests that are subject to floating or other similar use plans at the Components containing such timeshare interests, the Program Manager shall be required to reserve Use Periods at such Components in accordance with the Components respective underlying reservation procedures. In order to provide Trust Owners with the greatest possible flexibility in making reservations, Program Manager shall use reasonable efforts to reserve Use Periods at such Components on an equitable basis and Program Manager shall use reasonable efforts to reserve Use Periods that represent the full seasonality at such Components. Program Manager is under no obligation to reserve any particular Use Periods at such Components or reserve only those Use Periods that represent the highest Point values at such Components. H. Waiver. No failure of the Association, Trust Manager, Developer, or Program Manager to enforce any provision under these Reservation Procedures, exercise any power given under these Reservation Procedures, or to insist upon strict compliance with any obligation specified in these Reservation Procedures, and no custom or practice at variance with the terms of these Reservation Procedures, shall constitute a waiver of Association s, Trust Manager s, Developer s, or Program Manager s right to demand exact compliance with the terms and conditions of these Reservation Procedures. 14

16 SCHEDULE 1 Any capitalized terms not defined in this Schedule 1 shall have the meaning set forth in the Trust Agreement for the Trust. Accommodation has the meaning set forth in the Trust Agreement. Advance Priority Reservation means a confirmed reservation made during the Priority 1 Period by a Standard Owner who was granted the right to make such Advance Priority Reservation by Program Manager in exchange for the number of Points for Use required for an Advance Priority Reservation as established by Program Manager from time to time; provided, however, that Luxury Property, other than Accommodations located in The Ritz-Carlton Club, Vail, may not be reserved using an Advance Priority Reservation. Affiliation Agreement has the meaning set forth in the Trust Agreement. Approved Broker has the meaning set forth in Section IV.H. of these Reservation Procedures. Association has the meaning set forth in the Trust Agreement. Base Interest has the meaning set forth in the Trust Agreement. Call-in Calendar means the schedule promulgated from time to time by Program Manager that establishes the days during any given month that a Trust Owner may first determine the availability of any Use Period as further described in these Reservation Procedures. Chairman s Club Owner means a Trust Owner who has achieved a Chairman s Club level of membership by meeting the qualifications for such level of membership as established by Program Manager from time to time. Chairman s Club Owner shall also include such Trust Owners who held at least 13,000 Points as of April 29, 2015; provided, however, that such Trust Owner shall only be entitled to retain the classification as a Chairman s Club Member for so long as such Trust Owner holds not less than 13,000 Points; if such Trust Owner ever holds less than 13,000 Points, such Trust Owner s level of membership shall thereafter be determined by the then-current qualifications for levels of membership established by Program Manager. Component has the meaning set forth in the Trust Agreement. Delegate means a designated individual with whom Program Manager may deal with for purposes of making reservations, sending confirmations, and providing other services with respect to a particular Interest. Developer has the meaning set forth in the Trust Agreement. Distribution means the total number of Points assigned to a Trust Owner each Use Year, based on the number of Interests owned by the Trust Owner, excluding the receipt of Single Use Points. Exchange Company has the meaning set forth in the Trust Agreement. Exchange Company Documents has the meaning set forth in the Trust Agreement. Exchange Company Dues has the meaning set forth in the Trust Agreement. 15

17 Exchange Program has the meaning set forth in the Trust Agreement. Executive Owner means a Trust Owner who has achieved an Executive level of membership by meeting the qualifications for such level of membership as established by Program Manager from time to time. Executive Owner shall also include such Trust Owners who held at least 6,500 Points, but not more than 9,999 Points, as of April 29, 2015; provided, however, that such Trust Owner shall only be entitled to retain the classification as an Executive Owner for so long as such Trust Owner holds not less than 6,500 Points, and if such Trust Owner ever holds less than 6,500 Points, such Trust Owner s level of membership shall thereafter be determined by the thencurrent qualifications for levels of membership established by Program Manager. Family Member means a Trust Owner s spouse (if the spouse does not jointly own an Interest with the Trust Owner), and the Trust Owner s and Trust Owner s spouse s parents, children, and grandchildren. Guest means a person who, as an invited guest of a Trust Owner, stays in an Accommodation at a Component, and is not a Family Member of the Trust Owner. Special Benefits (other than the ability to occupy an Accommodation through an exchange) and the ability to reserve Accommodations are not available for Guests reservations if unaccompanied by a Trust Owner or the Trust Owner s Family Member. Holding Account means an account established for purposes of depositing Points that are restored to a Trust Owner after the cancellation or modification of a confirmed reservation. Points deposited in a Trust Owner s Holding Account shall be available for further use during that same Use Year, but the re-use of such restored Points shall only be confirmed by Program Manager for Use Periods beginning no more than sixty (60) days after the date of the request, subject to availability, or other Special Benefits as may be made available for such purposes by an Exchange Company from time to time. Points deposited in a Holding Account may not be transferred to other Trust Owners, banked for future use, or used for wait list requests. Borrowed Points deposited into a Trust Owner s Holding Account expire at the end of the Use Year from which such Points were borrowed. Interest has the meaning set forth in the Trust Agreement. Luxury Property means any Accommodation contained in the Trust that is located in a Ritz- Carlton Club, or is otherwise designated a Luxury Property by the Program Manager in its sole discretion. Market means a specific geographic region, Component, or group of Components as designated by Program Manager. Open Reservation Period means the period beginning sixty (60) days before the first day of a given unreserved Use Period. Open Reservation Time means that period or periods of time when Trust Owners or Guests of Program Manager can use Accommodations on a space available, first-come, first-served subject to availability basis as described in these Reservation Procedures. Point Schedule has the meaning set forth in the Trust Agreement. 16

18 Points has the meaning set forth in the Trust Agreement. Points may also be referred to in certain promotional materials as Marriott Vacation Club Points, Vacation Club Points, or MVC Points. Points for Use has the meaning set forth in the Trust Agreement. Presidential Owner means a Trust Owner who has achieved a Presidential level of membership by meeting the qualifications for such level of membership as established by Program Manager from time to time. Priority 1 Period means the period beginning three hundred ninety-five (395) days (+/- 6 days based on the applicable Call-In Calendar) before the first day of a given unreserved Use Period and ending twenty-eight (28) days (4 weeks) later. Priority 1 Reservation means a confirmed reservation made during the Priority 1 Period by a Select Owner, Executive Owner, Presidential Owner or Chairman s Club Owner. Priority 2 Period means the period beginning three hundred sixty-five (365) days (+/- 6 days based on the applicable Call-In Calendar) before the first day of a given unreserved Use Period and ending fifty-six (56) days (8 weeks) later. Priority 2 Reservation means a confirmed reservation made during the Priority 2 Period. Priority 3 Period means the period beginning three hundred (300) days (+/- 6 days based on the applicable Call-In Calendar) before the first day of a given unreserved Use Period and ending sixty-one (61) days before the first day of a given unreserved Use Period. Priority 3 Reservation means a confirmed reservation made during the Priority 3 Period. Program Manager has the meaning set forth in the Trust Agreement. Reservation Procedures means these Reservation Procedures for Marriott Vacation Club Destinations as further defined on page 1. Reservation Window means the method and timing whereby the use of each Use Period is available for reservation for a given Use Year. The Reservation Windows consist of the Priority 1 Period, Priority 2 Period, Priority 3 Period, and Open Reservation Period. Select Owner means a Trust Owner who has achieved a Select level of membership by meeting the qualifications for such level of membership as established by Program Manager from time to time. Single Use Points means the Points within the control of, and made available by Program Manager or Developer (or their designees) from time to time which permit the Trust Owner or Family Member to use an Accommodation or Use Period that would otherwise require Points in excess of the Trust Owner s Distribution. The ability to utilize Single Use Points for reservations may not be available for all Accommodations. The utilization of any Single Use Points will be subject to any terms and conditions under which such Single Use Points are granted including, without limitation, any applicable expiration dates on such Single Use Points. If Single Use Points are used to make a reservation, additional fees may be required to complete the reservation in order to offset any applicable taxes. 17

19 Special Benefits mean special products, services, benefits, and vacation/recreational experiences offered by an Exchange Company, including, without limitation, the ability to reserve hotel accommodations, cruises, other travel services, and to receive Single Use Points. The ability to utilize a Special Benefit may not be available to all Trust Owners. If Special Benefits are available and a Trust Owner is eligible to purchase or utilize any Special Benefits, separate terms and conditions shall apply to the purchase and use of such Special Benefits. Standard Owner means a Trust Owner other than a Select Owner, Executive Owner, Presidential Owner or Chairman s Club Owner. Trust means the MVC Trust. Trust Agreement means the MVC Trust Agreement by and among the Trustee, the Developer, and the Association, as amended from time to time. Trust Manager has the meaning set forth in the Trust Agreement. Trust Owner shall have the same meaning as the term Beneficiary in the Trust Agreement and shall include the terms Standard Owner, Select Owner, Executive Owner, Presidential Owner and Chairman s Club Owner as those terms are defined in these Reservation Procedures. Trust Owner in Good Standing means a Trust Owner who (i) has provided Developer, Program Manager, Association, and any other necessary party with the requisite tax documentation pursuant to the Trust Owner s purchase agreement; and (ii) is current with all payments to the Trust Manager, any Component Association or manager, and any Exchange Company relating to the Trust Owner s ownership of all Interests owned by the Trust Owner including all fees and dues owed by the Trust Owner. Trust Plan Documents has the meaning set forth in the Trust Agreement. Trust Reservation System means the method, arrangement, or procedure by which Trust Owners are required to compete among themselves in order to reserve the use of any Accommodations pursuant to the Trust Plan Documents, as further defined on page 1. The Trust Reservation System includes any software, hardware, or related equipment or technology owned, licensed, or leased by the Trust Manager or an Exchange Company. Trustee has the meaning set forth in the Trust Agreement. Use Period has the meaning set forth in the Trust Agreement. Use Year has the meaning set forth in the Trust Agreement. 18

20 SCHEDULE 2 Summary of Reservation Windows Reservation Priority Priority 1 Priority 2 Priority 3 Open Reservation Trust Owner Type 13 months 1 12 months 1 10 months days 1 Chairman s Club, Presidential & Executive Select Standard All Trust Owners Trust Owners with less than a Base Interest Trust Owners who cancel a reservation less than sixty (60) days prior to the check-in date. Trust Owners who do not pay any required initiation fee for a transferred Interest, with respect to non-trust Accommodations nights 2,4 7+ nights 4 7+ nights 3,4 1+ nights 6 1+ nights 4,6 1+ nights 4,6 1+ nights 6 1+ nights 6 1+ nights 6 1 Subject to the Call-In Calendar 2 With additional Points (no refund of additional Points if cancelled). 3 With no additional Points. 4 Standard Owners and Select Owners may not access Luxury Property, other than Accommodations located in The Ritz-Carlton Club, Vail, until six (6) months prior to the first day of a given unreserved Use Period. 5 Program Manager may restrict Trust Owners who do not pay any required initiation fee from reserving non-trust Accommodations except during the Open Reservation Period. Trust Accommodations will not be subject to this restriction. 6 Use Periods in The Ritz-Carlton Club, St. Thomas may be subject to a three night minimum stay, as determined by Program Manager in its sole discretion. A. Priority 1 Period. During the Priority 1 Period, Select Owners, Executive Owners, Presidential Owners and Chairman s Club Owners, and other Trust Owners reserving through an Advance Priority Reservation, have the right to request a reservation, subject to the Call-in Calendar, on a first-come, first-served subject to availability basis for the use of Use Periods in Accommodations available through the Trust Reservation System and other Special Benefits made available by an Exchange Company from time to time during the Use Year for which certain Trust Owners hold sufficient Points, in accordance with these Reservation Procedures. The number of Points which must be released by the 19