Call to Order/Roll Call Welcome and Introductions Approval of 2012 Annual Meeting Minutes

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1 August 2013 LOOK AT WHAT S INSIDE: From Your Board of Directors Continued Reminder of Annual Meeting Condominium Association, Inc. ANNUAL MEETING NOTICE All Interval Owners are invited to attend the Annual Meeting of Owners on Saturday, September 7, :00 a.m. 263 Main Street, Jackman, ME Candidate Biographies Annual Owners Meeting Minutes 2014 Operating Budget Proxy/Ballot Approval of 2014 Operating Budget AGENDA I. II. III. IV. V. VI. VII. VIII. IX. Call to Order/Roll Call Welcome and Introductions Approval of 2012 Annual Meeting Minutes Election Management Reports 2014 Budget Review Election Results Open Discussion/Questions and Answers Adjournment From Your Board It s no secret that the last few years have been economically challenging for most. Financial troubles plague businesses and owners alike. Through these times, has also struggled to keep bills paid and continue improvements. Over the years, we have spent long hours reviewing ways to keep revenue coming in and costs down. This has been challenging given the size and geographic location of the resort. In June, we spent time with InnSeason Resorts Corporate team to discuss the economy, growth and the future. During our meeting InnSeason informed us that it has made a decision to stepaway from development and subsidizing operations at Mountainview, sighting the continued challenges in banking and with consumer spending. continued on page 2...

2 From Your Board Continued... InnSeason has added a lot to our resort over the years and we will be sorry to see them go. All totaled, InnSeason invested over 1 million dollars into the facilities and operations of our resort and for this we are grateful. On a more positive note, The InnSeason Vacation Club, which owns about 250 weeks at Mountainview, will remain an owner and continue to pay dues on its weeks which total about $150,000 annually. This combined with revenue from about 300 owner weeks will give us the base revenue for 2014 operating year. Additionally, representations of InnSeason will remain on the Board to provide support and direction. After this year s budget preparation we have come to the conclusion that the resort has to drastically reduce expenses in order to make up the six figure subsidy gap left by the withdrawal of the InnSeason Developer. This includes changes in areas like purchasing and the front desk. Additionally, it was readily apparent that we cannot afford the costs associated with a large management company like Vacation Resorts International (VRI). Our resort is simply too small to afford this level of support. Therefore in lieu of drastically increasing our maintenance fees we have decided to go back to localized management in order to reduce expenses. Beginning October 1st 2013, SMS MANAGEMENT LLC owned and operated by Sandy Stevens, will be taking over Daily operations of the Mountainview. Sandy has worked tirelessly for years to preserve our resort and our vacations. She has offered to take on the administrative tasks done by VRI in order to help us reach our cost cutting goals. Sandy will be billing and mailing the 2014 Maintenance Fees. This means that all inquiries, regarding ownership, account balances and payments, exchanges or even general questions should be directed to the resort at: 263 Main Street Jackman, ME T: (207) F: (207) The good news is that we have been able to balance the 2014 Budget. Moving to local management as well as other operational changes will bridge the gap to keep us moving forward. The Board feels confident you will still enjoy the resort and that the resort will continue to be held in good regard by the Exchange Companies. We will cover more about this change at our upcoming Annual Meeting scheduled for 10:00 a.m. Saturday September 7th. Until then we thank you for your continued support. CANDIDATE BIOGRAPHIES KEVIN CURRAN (Incumbent) Education: B.S., Marketing and Finance, Babson College Qualifying Experience: 30 years of commercial and residential real estate development and marketing in senior management position for Alfred McAlpine, LLC, Edward DeBartolo Corporation & Taylor Woodrow Communities. Objectives as a Board Member: We are at 99% (or very close to it) as far as efficient and owner operations are concerned. I look forward to working with the Board to get that last %. Little things are important to all of us. DENNIS M. DUCHARME (Incumbent) Education: High School graduate Qualifying Experience: 30 years as a timeshare hotel condominium resort developer, Board of Directors, American Resort Development Association, Washington, DC. Objectives as Board Member: to serve as an authority on resort operations and provide direction to the Board regarding accepted resort industry practice. Dennis M. Ducharme, RRP, President; Born and raised in Rhode Island, Ducharme began his career in the hospitality industry in 1985 by developing the Holly Tree Resort in West Yarmouth (MA), his first vacation ownership property. Since then, he has played a key role in the development of vacation ownership properties on Cape Cod and in New Hampshire, generating sales in excess of $100 million. In 1993, he began the redevelopment of Pollard Brook Resort at Loon Mountain, a purposebuilt resort in Lincoln, NH. The 17 original units have grown to more than 130, creating New Hampshire s only 5Star vacation ownership resort. He also has recently completed the refurbishment of the former Mill House Inn into a 65unit purposebuilt, luxury resort hotel, in downtown Lincoln, now known as InnSeason Resorts South Mountain. He is a member of the Board of Directors of the American Resort Development Association (ARDA), and the New England ARDA Executive Committee, and a member of the Board of Directors of the North Country Center for the Arts. TANIA MERETTE Interval Week (s) Owned: Week 3, Unit 1 Education: B.A. Economics and Psychology, University of Maine Qualifying Experience: I am involved in our community and in travel. I sell Real Estate and thus am market savvy. Objectives as a Board Member: Keep Mountainview as a marketable and desirable timeshare.

3 MOUNTAINVIEW RESORT CONDOMINIUM ASSOCIATION, INC. ANNUAL OWNERS MEETING MINUTES Saturday, September 8, 2012 I. ROLL CALL/CALL TO ORDER A duly noticed Annual Owners Meeting was called to order at 10:05 a.m. by Steve Furrer. The following persons were in attendance. Board of Directors: Dave Potter Kevin Curran Dennis Ducharme via teleconference Absent: Mike Robinson and Russ Flagg Resort and Management: Sandy Stevens, Resort General Manager Stephen Furrer, Director of Resorts/VRI Steve pointed out that we have met the quorum requirements of 156 votes with the 158 Developer votes represented and the 233 InnSeason Vacation Club votes represents. II. APPROVAL OF AGENDA MOTION: David Potter moved to approve the agenda as written. Motion was seconded by Kevin Curran and approved unanimously. III. APPROVAL OF PREVIOUS ANNUAL MEETING MINUTES MOTION: Dennis Ducharme moved to approve the 2011 Annual Meeting Minutes as written. Motion was seconded by Kevin Curran and approved unanimously. IV. MANAGER S REPORT A. Resort Update (Sandy & Steve) Sandy Stevens reviewed the projects that had been accomplished over the past year. This included substantial renovations to the pool, replacement of one of the main water heaters, installation of security cameras, signage updates as well and numerous repairs to units and cabins. B. CSI Review (Steve) As expected, the resort scores dropped during the pool renovation period; however, controllable areas are still scoring in the mid 90 s. In general the scores are holding their ground. RCI Scores are still lower than expected due to traveler s expectations when visiting the region. We have worked on information updates with RCI to help improve this. V. FINANCIAL REPORT A Year End Financial Report (Steve) Stephen Furrer reviewed the following items: Actual Budgeted Diff $353,767 $348,298 2% Developer Subsidy $200,107 $222,020 10% Total $553,874 $570,318 3% Payroll $201,631 $220,152 8% Operating $144,432 $158,668 9% Admin $186,910 $191,498 2% Total Expenses $532,973 $570,318 7% Net $ 20,901 $ Delinquency 20.80% 20.00% 4% B YTD Financial Report (Steve) 2012 year to date financials were reviewed based on the following information: Actual Budgeted Diff $212,753 $218,881 3% Developer Subsidy $ 43,746 $121,456 64% Total $256,499 $340,337 25% Payroll $120,839 $130,145 7% Operating $ 73,762 $ 97,218 24% Admin $114,507 $114,600 0% Total Expenses $309,108 $341,963 10% Net $(52,609) $ (1,626) Delinquency 20.50% 21.10% 3% C Proposed Operating Budget (Steve) Steve Furrer reviewed the following items: Diff $384,112 $376,812 2% Developer Subsidy $233,214 $208,210 12% Total $617,326 $585,022 6% Payroll $222,384 $223,360 0% Operating $164,872 $169,090 2% Admin $155,875 $138,812 12% Bad Debt $ 57,867 $ 43,981 32% Reserve $ 16,328 $ 9,779 67% Total Expenses $617,326 $585,022 6% Net $ $ Delinquency 27.00% 20.00% 35% Fees remain unchanged for last year per fee comparison: Year Unit Operating ReTax Reserve Total % Types Fee Fee Fee Fees Change Bdrm $ $54.00 $26.00 $ % Cabin $ $65.00 $37.00 $ % Bdrm $ $54.00 $26.00 $ % Cabin $ $65.00 $37.00 $ % Steve pointed out that five (5) owners sent in proxy ballots. All ballots were in favor of adopting the proposed 2013 budget. Additionally the Developer voted his 158 weeks and InnSeason Vacation Club voted its 233 weeks in favor of adopting the proposed budget as well. Steven acknowledged that quorum was met and the proposed budget was ratified with no opposition. MOTION: Dennis Ducharme moved to approve the 2013 Operating Budget as presented. Motion was seconded by Kevin Curran and approved unanimously. VI. ADJOURNMENT MOTION: With all business completed, Kevin Curran moved to adjourn the meeting at 10:24 a.m. Seconded by Dave Potter and approved unanimously.

4 c/o Vacation Resorts International P.O. Box 399 Hyannis, MA PRST FIRST U.S. POSTAGE PAID CURLEY DIRECT ADDRESS SERVICE REQUESTED Important Numbers and Vacation Resorts International (VRI) (207) Fax (207) General Manager: Sandy Stevens Exchange Information Interval International (800) RCI (877) VRI*ety (888) Vacation Owner Services / VRI Maintenance Fees (800) Payment Plans (800) Changes/additions to Ownership (800) nememberservices@vriresorts.com Central Reservations (800) Information and Assistance Fixed Week Reservation Float Week Reservation Bonus Time Rental Program Deposits with Exchange Company innseason@vriresorts.com Still Need Assistance VRI Corporate Services (508) VRI Fax (508) Managed by Vacation Resorts International Perfecting the Art of Hospitality

5 REVENUES OPERATING EXPENSES Assessment Operating 354,445 E lectricity 14,932 Assessment Reserves 20,887 G as 69,322 Rental 47,692 W ater/sewer 7,130 Interest / Reinstatement / Bad Debt Recovery 4,229 Trash Removal 725 Telephone T elephone 5,580 Housekeeping 2,243 Cable TV 713 Internet 3,040 I nternet 1,836 Other 1,979 S wimming Pool / Spa 2,810 Developer Subsidy E xterior Maintenance 2,350 T otal Revenue 434,514 Repairs and Maintenance / Supplies 8,811 E XPENSES H VAC Cleaning Supplies / Uniforms Laundry Service / Carpet Cleaning Wages & Benefits 167,830 L inen Replacement 1,450 Operating Expenses 125,383 S ecurity & Outside Services Administrative & General 79,340 R oom Equipment Replacement 2,600 Reserves 18,473 R ecreation & Activities Bad Debt Expense 43,487 G uest Services Depreciation V ehicle Expense 2,775 E quipment Rental Expense 3, Total Expenses 434,515 T otal Operating Expenses 125,383 WAGES & BENEFITS ADMINISTRATIVE & GENERAL Salary & Wages 148,261 B ad Debt Expense Operating 41,074 Taxes & Benefits 19,569 P roperty Taxes 35,400 I nsurance 24,382 Total Wages & Benefits 167,830 M anagement Fees M iscellaneous Expense A ccounting A ssessment Billing R eservations Technical Services Payroll Processing Fees B ank, Credit Card Fees O ffice Expense P rinting & Mailing P ostage HOA Meetings T ravel Expenses License & Permits Subscriptions & Dues 8, ,986 3,450 1,843 1, P rofit/loss (0) TOTAL ADMINISTRATIVE & GENERAL 120,414 UNIT OPERATING TAXES RESERVES TOTAL 1 Bedroom $ $ $ $ C abin $ $ $ $661.50

6 IF YOU CANNOT ATTEND THE ANNUAL MEETING, The Directors request that you note your preference on the Proxy/Ballot and return it at once to reach us prior to September 7, Condominium Association, Inc. This Proxy/Ballot will be voted according to the instructions indicated below. Proxy solicited on Behalf of the Board of Directors for the Annual Meeting of Owners to be held on September 7, The undersigned hereby appoint(s) (check one only): David Potter, Director Other: to act as Proxy with power to vote for and act on behalf of the undersigned on any business that may properly come before the Annual Meeting of the Owners of Condominium Association, Inc., to be held at on Saturday, September 7, 2013, 10:00 a.m. or any adjournment thereof. Vote for no more than two (2) Candidates from the Candidates listed below. (Qualifications and biographies listed in newsletter.) *Incumbent *Kevin Curran Tania Merette *Dennis M. Ducharme Write in Approval of 2014 Operating Budget Copy of Budget included in this Newsletter. Approve Disapprove This form is not valid unless signed by the authorized Interval Owner. Signature Signature Date Date Please Print Name(s) Legibly Unit(s)/Week(s) Number Please fold, secure, stamp, and mail to address on reverse or fax to (508) Ballot

7 Please Fold Here PLACE STAMP HERE Please check if new address Secretary Condominium Association c/o Vacation Resorts International Post Office Box 399 Hyannis, MA Please Fold Here