Legal Disclosure

SAN FRANCISCO EXCHANGE COMPANY DBA SFX PREFERRED RESORTS
DISCLOSURE STATEMENT in compliance with State of Hawaii HRS – 514 9.5

(i) Manner in which the "Program" is operated.

General overview:

SFX Preferred Resorts is a service provider for timeshare exchange vacations. The affiliation relationship is directly with the consumer Timeshare Owner. Timeshare weeks are deposited into an exchange pool within our computer network. These units are various sizes, typically studios, one and two-bedroom suites for various dates of the year in different locations. To make an exchange you are required to deposit your week into this pool, and you will have up to two years past the check-in date of the week you deposited in which to redeem an exchange at another property that may be available in the system.

Deposit a Week

To deposit your week into the vacation bank, you contact your reservations department at your home resort and reserve a qualified week. You then login to your SFX account and deposit that week into the Vacation Bank. Thousands of other Members are doing the same thing. They are reserving a week at their home resort and depositing it too, thus relinquishing their time to other Members for them to use for an exchange. This is how space is created for exchanges.

Requesting a Vacation Exchange

The most important rule is "Flexibility" on both travel weeks and/or locations. The more flexible you are, the greater the possibility for results. Flexibility is defined in the next paragraph.

A correctly submitted exchange request for your vacation exchange should have at least three alternative travel dates (weeks). It should also if possible have three alternative locations. The idea being if one choice is completely booked, another choice may be available for your vacation. If you submit just one location, and/or just one week for travel, and perhaps name just one resort only that you will accept when there may be four or five equally beautiful resorts in the same area, we consider those as Member imposed restrictions which may hamper your ability to be confirmed for a great vacation.

Another factor is timing. If you wish to travel in prime time, which is prime demand when most people want to travel, if possible try and have your request placed at least 9-12 months in advance. As with hotels or airlines, the further ahead you book, the more likely space may be available.

Sometimes when you place your request the space will be immediately available and we will book you. On other occasions your request may not be immediately available and we need to start a "search" for the week you are requesting. Every day, space is continuously being deposited by various sources, including Members just like you and various other suppliers into the Vacation Bank. Our computers are continually searching the Vacation Bank looking for a "Match" to your request. Our goal is to send you on a great vacation, so if there is not a perfect match to your request, our agents may offer you a "near match".

What is a "near match"? It could be the week before or after you were requesting. It may be a larger or small unit than you were requesting. It may be a different but equally as beautiful location. You may or decline the offer. If you decline a "near match" there are no penalties.

Anything that is less than the prescribed procedures above will be considered as an "incorrectly placed request". However, we may still proceed in the search process for your requested exchange.

Persons operating the Program

Mel Grant – CEO
Brad McDonald – President

SFX Preferred Resorts is a registered California Corporation, and was founded in 1992. Its current corporate headquarters are located at:

111 Anza Blvd. Suite 330,
Burlingame, CA 94010

No resort developer is an agent or joint venturer with SFX. Neither SFX, nor any of its officers or directors has any beneficial interest in any resort development participating in the SFX Exchange Program.

(ii). To participate in the Program, you are required to become an SFX Member. Your SFX Membership is voluntary and not required as part of any timeshare purchase you may be considering.

(iii). Membership Costs: There are currently two Memberships; Gold and Diamond.

Gold Membership – is complimentary (No annual fees to pay, just an exchange fee). Current exchange fee: $209.

Diamond Membership - has a nominal annual fee, but the exchange fee is less and there are more benefits than Gold. Membership fees range between $199-$399 depending on the annual package selected. Exchange fee:$149.

Exchange fee: is a transaction fee charged when we confirm you for your exchange. You only pay for results. There are no exchange fees paid in advance. The exchange fee is the same for both domestic and international exchanges.

All fees are payable to SFX Preferred Resorts.

(iv). Both Membership and exchange fees will increase from time to time. There are various factors that are taken into consideration, the primary factor being operational costs. Other factors will be based on inflation and competition within the marketplace.

(v). At this time, SFX has no affiliation agreements with resort developers; therefore we are unable to represent how many timeshare resort units are represented in the Program. The SFX Program is a consumer timeshare based system that acquires weekly deposits from its Member base, and not resort developers. At this time, SFX has over 430,000 registered Members. Not all Members participate every year; therefore it is not possible to predict potential availability. All exchange fulfillment is subject to availability with no guarantee of specifically requested locations or dates.

(vi). To effectuate an exchange, the following procedures are required.

a. Member must reserve a week at their home resort. The maintenance fee must be current for the use year reserved.

b. Member must then deposit their week into the SFX Program. This is done by logging into your SFX online account at www sfx-resorts.com.

c. After your deposit has been verified, Member will be notified by email they may now place a request for an exchange. Member will have up to two years past the check in date of the week deposited in which to redeem an exchange. Member may communicate via our website or directly with an agent.

d. When a comparable week that matches the request has been located, an agent will communicate with Member to discuss the resort and answer any questions they may have. Member will then be emailed a confirmation for their vacation exchange.

Helpful Vacation Exchange Terminology...

Home Resort... is the resort where you own your time. You deposit your week from your home resort and request an exchange to use another Member’s week while another guest will use yours.

Deposit your week... To receive an exchange at another resort you relinquish your occupancy rights to the week you own in a particular year to SFX, who will then assign your unit to another guest for their vacation. In return you may request a week at another members resort. You will have from the day we receive your deposit and up to two years past the check-in date of the week you deposited.

Place a request... Means you are requesting SFX to search for a week at a different resort to where you own for a vacation exchange. We need to know several items including... Where you would like to travel, when you would like to travel and how many people in your party. All space is Subject to availability.

Search... This means what you are requesting isn’t immediately available and we start a search to locate what you are requesting for your exchange.

Match... A match means our computers have matched a week deposited to your vacation request criteria by dates, location etc. If we find an exact match for what you asked us to find for you, an exchange fee is due and payable for services rendered.

Near match... Means we have located and offered you a week that is close to what you requested, but not exact. It may be slightly different dates, and/or location, and/or unit size. In many instances Members accept near matches because they are great resorts in great locations and they can look forward to a

Guest name... is the name that will be on the confirmation. It may be you the Member, or another party you are sending as your Guest. You must inform us if another party will be using the exchange. If we are advised of their names at the time the request is placed, there is no additional charge. If you advise us after the week has been booked and a name change is needed, there will be an additional fee.