October 10, 2017 RE: Notice of Budget Meeting

Notice of Annual Meeting Monarch at Sea Pines Owners’ Association, Inc.

Dear Marriott’s Monarch Owner:

The Board of Directors of Monarch at Sea Pines Owners’ Association Inc., will meet at 8:00 a.m., Eastern time, on November 7, 2017, to review the operations of the Association and to approve the Proposed 2018 Budget. The Board Meeting will be held at the offices of Marriott Vacation Club® International, Board Room, 1044 William Hilton Parkway, Hilton Head Island, South Carolina 29928. The Proposed 2018 Budget, pending Board approval at the Board Meeting, is enclosed. Please contact Mark Heldt, Director of Finance, by phone at 843-686-7348 or by email at mark.heldt@vacationclub.com with any questions regarding the Proposed 2018 Budget.

The 2017 Annual Meeting of Monarch at Sea Pines Owners’ Association, Inc., will be held later that same day, November 7, 2017 at 3:30 p.m., Eastern time, at the offices of Marriott Vacation Club® International, Board Room, 1044 William Hilton Parkway, Hilton Head Island, South Carolina 29928. The purpose of the Annual Meeting is to review the operations of the Association, conduct any other business which may be presented at the meeting and to consider the following: ▪ Election of two (2) members to the Board of Directors each to serve a three-year term

The enclosed Annual Meeting materials are included for your review: ▪ Candidate Profiles of the candidates for election to the Board of Directors ▪ Limited Proxy Submission Methods ▪ Limited Proxy If you are unable to attend in person, you may submit your Limited Proxy electronically through the Internet at proxyvoting.com/MVCI by 11:59 p.m., Eastern time, on October 31, 2017. The Internet procedures are designed to authenticate your electronic submission by use of a personal control number found on your Limited Proxy. Or submit your Limited Proxy by marking, signing, and dating your Limited Proxy and returning it in the prepaid envelope to: Proxy Services Corporation, P.O. Box 9001, Brentwood, New York 11717-9804 by November 7, 2017. If you submit your Limited Proxy on the Internet, please do not also mail your Limited Proxy. If you have any questions regarding submitting your Limited Proxy electronically, please contact Morrow Sodali by email at mvci.info@morrowsodali.com. In connection with updating your records, a Certificate of Voting form is included. Please designate your voting member by entering their name on the enclosed form, sign, date and return with your Limited Proxy in the business return envelope provided. You may also complete the Certificate of Voting form on the secure Internet site. Single, individual Owners do not need to complete a form. If you have any questions about your Limited Proxy or the information enclosed, please contact Birgit Koellner-Gozlan, General Manager, by phone at 843-686-7104 or by email at birgit.koellner@vacationclub.com.

Whether or not you plan to attend the Annual Meeting, I encourage you to submit your Limited Proxy promptly. If the quorum requirement is not met, the Association will incur additional expense to re-notice Owners in order to obtain the votes required to hold the Annual Meeting. Your vote and participation are important to the Association.

Sincerely, Linda Wischnowski Secretary Monarch at Sea Pines Owners’ Association, In

$ % $

Revenue

Maintenance Fee 1,431.77 1,592.78 161.01 11.2% 9,715,843 1,579.81 3,159.63

Antenna Income 5.66 5.98 0.32 5.7% 36,501 5.94 11.87

Bank/Investment Interest 1.24 1.73 0.49 39.5% 10,531 1.71 3.42

Float Time Income 3.44 3.44 0.00 0.0% 20,978 3.41 6.82

Late Fees 2.40 2.45 0.05 2.1% 14,965 2.43 4.87

Maintenance Fee Interest Income 5.19 4.95 (0.24) (4.6%) 30,201 4.91 9.82

Marketplace Express Net 1.95 2.50 0.55 28.2% 15,253 2.48 4.96

Total Maintenance Fee Revenue 1,451.65 1,613.83 162.18 11.2% 9,844,272 1,600.69 3,201.39

Expenses

Accounting 20.48 21.00 0.52 2.5% 128,109 20.83 41.66

Activities 20.97 23.54 2.57 12.3% 143,576 23.35 46.69

Administration 62.61 69.66 7.05 11.3% 424,913 69.09 138.18

Audit Fee 1.92 2.03 0.11 5.7% 12,400 2.02 4.03

Bad Debt Expense 0.00 2.10 2.10 100.0% 12,810 2.08 4.17

Billing and Collections 8.96 8.96 0.00 0.0% 54,656 8.89 17.77

Board of Directors 3.19 3.19 0.00 0.0% 19,482 3.17 6.34

Cable Television 7.92 8.14 0.22 2.8% 49,669 8.08 16.15

Community Services Association, Inc. Easement Agreement*

20.40 21.18 0.78 3.8% 129,179 21.00 42.01

Consulting Expense 1.10 1.10 0.00 0.0% 6,704 1.09 2.18

Credit Card Fee 19.00 20.27 1.27 6.7% 123,671 20.11 40.22

Electricity 32.79 35.22 2.43 7.4% 214,818 34.93 69.86

Front Desk 68.69 68.26 (0.43) (0.6%) 416,378 67.70 135.41

Gas 3.85 3.86 0.01 0.3% 23,518 3.82 7.65

High Speed Internet 10.10 10.19 0.09 0.9% 62,162 10.11 20.22

Housekeeping**

201.61 213.84 12.23 6.1% 1,304,415 212.10 424.20

Human Resources 9.35 10.84 1.49 15.9% 66,125 10.75 21.50

Income Tax 2.57 2.85 0.28 10.9% 17,402 2.83 5.66

Insurance 34.35 39.42 5.07 14.8% 240,449 39.10 78.19

Landscape / Grounds 26.72 28.65 1.93 7.2% 174,735 28.41 56.82

Loss Prevention / Security 27.21 29.33 2.12 7.8% 178,893 29.09 58.18

Maintenance 124.59 128.06 3.47 2.8% 781,136 127.01 254.03

Management Fee 130.16 143.88 13.72 10.5% 877,668 142.71 285.42

Operating Capital 0.00 10.08 10.08 100.0% 61,500 10.00 20.00

Owner Services***

10.83 11.47 0.64 5.9% 69,975 11.38 22.76

Pest Control 2.76 2.77 0.01 0.4% 16,878 2.74 5.49

Pool Maintenance 10.25 11.02 0.77 7.5% 67,216 10.93 21.86

Postage and Printing 2.31 2.33 0.02 0.9% 14,209 2.31 4.62

Property Taxes 109.79 122.96 13.17 12.0% 750,058 121.96 243.92

Refuse Collection 2.71 2.82 0.11 4.1% 17,231 2.80 5.60

Telephone 6.41 6.40 (0.01) (0.2%) 39,049 6.35 12.70

Water and Sewer 9.56 9.92 0.36 3.8% 60,519 9.84 19.68

Operating Fee 993.16 1,075.34 82.18 8.3% 6,559,503 1,066.58 2,133.17

Reserve Fee 458.49 538.49 80.00 17.4% 3,284,769 534.11 1,068.22

Operating And Reserve Fee 1,451.65 1,613.83 162.18 11.2% 9,844,272 1,600.69 3,201.39

Total Maintenance Fee 1,431.77 1,592.78 161.01 11.2% 9,715,843 1,579.81 3,159.63

3 BEDROOM

50

TIME‐SHARE 

ESTATES

 (PER TIME‐

SHARE ESTATE)

* Pursuant to the terms of the Easement Agreement between Community Services Associates, Inc. and Marriott Ownership Resorts, Inc. for easement

of roads, public facilities, bike paths and trails within the Sea Pines Plantation.

** Certain operating expenses are presented in the budget net of funds estimated to be reimbursed to the Association in 2018, including but not limited

to: (i) funds received from MVC Trust Owners Association, Inc. and MVC Exchange Company to account for housekeeping expenses necessitated by

nightly use of accommodations by MVC Trust members and Marriott Vacation Club Destinations Exchange Program members, and (ii) fees paid to the

Association by transient guests who voluntarily elect to receive a daily room cleaning.

*** The Marriott Resorts Hospitality Corporation ("MRHC") has been delegated the authority to provide all services incidental to the management of the

Condominium, including Owner Services and all property operations. In connection with the performance of those services, all operating expenses will

be charged to and paid by the Association to MRHC, including some that may be incurred through affiliates of MRHC. Certain of the operating

expenses charged to and paid by the Association to MRHC may reflect economies of scale associated with the number of projects managed by MRHC

and the affiliated relationship between MRHC and the developer. The amounts charged for such operating expenses may reflect pricing that is lower

than what equivalent services would cost if charged on an independent case-by-case basis.

Capitalized terms not defined in this budget have the meaning given to them in the Master Deed, Declaration of Interval Ownership or the Public

Offering text.

MONARCH AT SEA PINES OWNERS' ASSOCIATION, INC.2018 Proposed Operating Budget

For The Period Beginning January 1, 2018 And Ending December 31, 2018

2017

BUDGETED

EXPENSES

6,100

TIME‐SHARE ESTATES

 (PER TIME‐SHARE 

ESTATE)

2018

PROPOSED

BUDGET

6,100

TIME‐SHARE ESTATES

 (PER TIME‐SHARE 

ESTATE)

2017 BUDGET

VS

2018 BUDGET

INCREASE/(DECREASE)

2018

PROPOSED

BUDGET TOTAL

2018 BUDGET BY VILLA TYPE

2 BEDROOM

6,050

TIME‐SHARE 

ESTATES

 (PER TIME‐

SHARE ESTATE)

Monarch at Sea Pines Owners’ Association, Inc. 2017 Annual Meeting

Candidate Profiles

Candidates are listed in alphabetical order.

Name: Donald J. Bailey Home: Broadview Heights, Ohio Occupation: Senior Industrial Business and Not-For-Profit Executive Comments: “Seasoned, senior executive with a 25 Year record of accomplishments in technical, marketing

and business management for three major industrial corporations, plus 25 years of creating successful public/private non-profit partnerships. Past Monarch Board Director (2010 - 2016, 3 as Treasurer, 1 as Secretary) focused on value-added use of owner funds and sensitivity to creating pride in ownership of the Monarch as a premier world-class resort. I'm excited about the accomplishments of Berg, our Monarch Management team and the Board and would welcome the opportunity to represent you during the upcoming critical, challenging exterior facade refurbishment and villa upgrades planned for 2018 and 2019. As always, I seek your guidance and ideas for continuous improvement of our Monarch experience. I'm active in seven homeowner associations including 8 years as President and Trustee of my residential association. If elected as a Director, I promise to represent you with a sensitivity to fiscally sound, cost-effective, continued enhancement of the Monarch we all love as the 'Best of the Best' on Hilton Head!”

Name: Thomas E. Bonhag Home: Neptune, New Jersey Occupation: Retired, Financial Consultant

Comments: “Having purchased two weeks the year after Monarch opened, I have extensive experience with the various phases of Monarch's evolution from top of the heap to less than ideal then back to the top again. I know what works at Monarch and what has been tried and does not work. In addition to Monarch, my wife and I own at Frenchman's Cove on St. Thomas and at Grande Vista in Orlando, thus giving us comparative properties against which to measure Monarch. The most significant challenge facing owners at all Marriott properties is operational cost control to keep annual maintenance. reserves, and taxes in check. I have spoken to a number of owners concerned about ever-escalating costs that have the effect of making timeshare ownership less and less attractive. I have extensive Board experience and would be regarded as an effective Board Member by fellow Board Members.”

Name: Samuel S. Colmery Home: Aurora, Ohio Occupation: Retired, but work as part time park ranger and senor bus driver Comments: “As a 10+ year member of Grande Vista, Legends Edge and Harbour Club boards, currently

serving as president of Harbour Club, I have perspective, vision, resources and common sense solutions to contribute to the Monarch Board. If elected, I will resign one of the aforementioned boards. The challenge in representing owners is to work with Monarch management in maintaining and improving the resort, which is growing older, to continue the first class vacation experience, while limiting fee increases, in face of ever rising costs of labor, goods and services. My professional career in marketing, advertising, public relations and facility design has enabled a working knowledge of refurbishing and an understanding of resort operations. I am not a numbers cruncher, rather a numbers watcher. I have the time and energy to represent Monarch owners.”

Monarch at Sea Pines Owners’ Association, Inc. 2017 Annual Meeting

Candidate Profiles

(continued) Name: Frank Mamat Home: Southfield, Michigan Occupation: Attorney

Comments: “I have owned 4 timeshares since 1994, 2 are Marriott (Monarch and Barony Beach). As a 40-year attorney representing client all over the world I would bring great experience and judgement to the Board and would be honored to be able to serve.”

Name: Ronald Marks Home: Gainesville, Florida Occupation: Biostatistician Comments: “My name is Ronald Marks and I own five weeks of Marriott timeshare (beginning in 1982) all

at Monarch, plus Vacation Club points. I had a 30-year career as an academic biostatistician and currently work for Clinipace, a global Contract Research Organization. My wife and I have vacationed at Monarch every year since 1983 and for the last few years have stayed for 4 weeks each year. We love Monarch even more watching our grown children and grandchildren enjoy it so much. I would like to give back to Monarch for all it has meant to me and my family. I have balanced budgets throughout my career, and I understand the issues facing Monarch like the parking issue, unit refurbishment every five years, and hurricane preparedness. I believe my career experience plus my long-time Monarch ownership give me the experience needed to serve the Monarch family well.”

Name: Katherine Philipp Home: Spotsylvania, Virginia Occupation: Retired, consumer educator

Comments: “It was my pleasure to serve on the Marriott board for two terms in the past, and now I ask for your vote to represent you once again. Monarch is about to undergo a major refurbishment project including window replacements, and my experience will benefit all owners as our Board of Directors overseas the project. As a Monarch pioneer (owner since 1982) I always look forward to a visit to my vacation home. Over the years I have been extremely pleased with Marriott's management and the high guest satisfaction scores our resort consistently receives. My expectations continue to be high, but it’s important to monitor expenses as we make improvements to keep Monarch competitive with other newer timeshare properties on the island. Monitoring budgets, evaluating vendor proposals, and communication with management are crucial as we move forward. Please vote for me to represent you on the Monarch board.”

Name: Don Purcell Home: Columbia, South Carolina Occupation: President-Spring Valley Auto Group Comments: “As President for Spring Valley Auto Group I was responsible for three operational areas – auto

repair and rental, horse stables and carriage operations and real estate rentals and holdings. I have been a Monarch owner for 30 years and have always enjoyed the facilities with my family and now grans. I would like to be able to give back my years of enjoyment by serving the other Monarch owners. I have extensive experience on boards having served not only on our company’s board, but as a board member and President of the Greater Columbia Chamber of Commerce, the North East Area Chamber of Commerce (2 times), the Richland County Airport Commission, and the South Carolina Aviation Association. I would like to see our property continue to be maintained and updated to the level that everyone can enjoy and be proud of.”

Monarch at Sea Pines Owners’ Association, Inc. 2017 Annual Meeting

Candidate Profiles

(continued) Name: Brett C. Romano Home: Rotterdam, New York Occupation: Claims Examiner Comments: “I have been blessed at a young age to be introduced to travel. This passion for exploring new

places and appreciating resorts with comfortable amenities drove me to purchase my first timeshare at the age of 18. I currently own 3 timeshares and I am looking for a 4th week in Hawaii. I would love to serve as Director because I truly love the aspect of timeshare travel, and I believe in this model. Marriott's Monarch is where it began, and it truly has an amazing charm that needs to be preserved as improvements are made. My love for Travel and the hospitality industry drove me to work at the Residence inn at the age of 18, as I was attending college obtaining a degree in business management. I worked at Marriott for 10 years before leaving for an opportunity with New York State Government. I loved my time working for the Marriott, and being on the 'inside' as well as being a vacation club owner really helped me appreciate my ownership as well as the Marriott spirit to serve philosophy.”

Name: Linda Wischnowski Home: Wheaton, Illinois Occupation: Property Manager Comments: “I have served on the Monarch Board the past three years. I am committed to keeping annual

fees at a level that provides enough money for ongoing maintenance and improvements as well as adequate reserves for future capital expenditures while keeping the cost of ownership reasonable. I have thirteen years of experience as a property manager for a portfolio of condominium, townhome, and single family community associations. I also have many years of experience in the insurance industry as an underwriter, agency manager, and agent. Your Board has been working with Marriott management to implement a major refurbishment of the exterior and interior of the property that will keep Monarch a premier resort and enhance the vacation experience for all owners. It would be a privilege to continue my involvement and provide continuity until project completion.”

Limited Proxy Submission Methods The accompanying Notice of Annual Meeting describes important issues affecting the Association. To submit your Limited Proxy: 1. By Internet

a. Log onto proxyvoting.com/MVCI, 24 hours a day, seven days a week by the deadline of 11:59 p.m., Eastern time, on October 31, 2017.

b. Enter the control number that appears on your Limited Proxy.

c. Follow the simple instructions.

2. By Mail

a. Mark your selections on the enclosed Limited Proxy. b. Date and sign your name exactly as it appears on your Limited Proxy.

c. If you will not be able to attend the Annual Meeting, please appoint a proxy holder to vote on your

behalf. You may appoint the designated proxy holder named on your Limited Proxy, or you may write in the name of another person that you wish to act as your proxy holder. The person you designate must be in attendance at the Annual Meeting for your vote to be counted.

d. Mail the Limited Proxy in the enclosed postage-paid envelope.

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LIMITED PROXY Monarch at Sea Pines Owners’ Association, Inc. 2017 Limited Proxy Date Signed: _____________________________ Voting Member Signature (X): ______________________________ Voting Member Signature: (X) _____________________________ Legal Name: Note: All owners (or the designated voting member, if applicable) must sign and date the Limited Proxy for the vote(s) to be counted. Please sign and return your Limited Proxy on or before October 31, 2017. Please note, however, that votes will be counted if cast in person or otherwise properly received on or before November 7, 2017. 1. The above signed, as member(s) of Monarch at Sea Pines Owners’ Association, Inc., (the “Association”), do hereby

appoint EITHER (indicate one choice only by filling in the circle at (1) or (2)):

(1) Richard Leal, President of the Association, or any officer or director of the Association in attendance he so designates in his absence; OR

(2) _________________________________________________________________________________ (Insert name of individual, who MUST be in attendance at the Annual Meeting in order for your vote(s) to be counted.)

as my true and lawful attorney-in-fact and proxy holder, revoking all previous proxies, to vote in my place and stead on my behalf, as though I myself were present, with power of substitution, at the Annual Meeting of Monarch at Sea Pines Owners’ Association, Inc., to be held at 3:30 p.m., Eastern time, on November 7, 2017, at the offices of Marriott Vacation Club® International, Board Room, 1044 William Hilton Parkway, Hilton Head Island, South Carolina 29928, except that my proxy holder's authority is limited as indicated below.

2. AGENDA ITEM(S). (FOR YOUR VOTE TO BE COUNTED ON THE FOLLOWNG ISSUES, YOU MUST MARK THE CIRCLE(S) PROVIDED BELOW. IF YOU LEAVE ANY ITEM IN THIS SECTION BLANK, YOUR PROXY HOLDER MAY NOT CAST A VOTE ON SUCH ITEM.) A. Election of two (2) members to the Board of Directors each to serve a three (3) year term. See the Candidate Profiles

for a summary of the candidates. Please vote for no more than two (2) candidates. Selection of more than two (2) candidates will invalidate your vote.

Donald J. Bailey Thomas E. Bonhag Samuel S. Colmery Frank Mamat Ronald Marks Katherine Philipp Don Purcell Brett C. Romano Linda Wischnowski

3. GENERAL POWERS NON-AGENDA ITEM(S).

A. You may choose to grant your proxy holder general powers. Please fill in the circle below if you want your proxy

holder to vote on other issues which may come up at the meeting and for which a limited proxy is not required.

I authorize and instruct my proxy holder to use his or her best judgment on all matters which properly come up before the meeting and for which a general power may be used.

THIS LIMITED PROXY IS REVOCABLE BY THE MEMBER IN ACCORDANCE WITH THE BYLAWS OF THE ASSOCIATION AND IS VALID ONLY FOR THE MEETING FOR WHICH IT IS GIVEN AND ANY LAWFUL ADJOURNMENT THEREOF. IN NO EVENT IS THIS LIMITED PROXY VALID FOR MORE THAN ELEVEN (11) MONTHS.

1

Owner ID/Villa/Week:

CERTIFICATE OF VOTING MEMBER – INDIVIDUALS

[This Certificate of Voting Member (Individuals) form should only be used for those Interests owned by multiple individuals. Partnerships, corporations, trusts, limited liability companies and other entity owners shall use the Certificate of Voting Member (Entity) form on page 2.]

The undersigned, being the owners (each, an “Owner” and, collectively, the “Owners”), of ownership interest(s) (each, an “Interest”), in the program or property known as Marriott’s Monarch which is managed and administered by Monarch at Sea Pines Owners’ Association, Inc. (the "Association"), hereby designate the below-listed individual as the “Voting Member” to cast the vote, on Owners’ behalf, for each such Interest, in all matters pertaining to the Association, until this Certificate of Voting Member is revoked or suspended by written instrument executed by the Owners.

Each Owner hereby acknowledges and agrees that the execution and delivery of this Certificate of Voting Member shall automatically revoke, and shall entirely replace and supersede, any voting certificate(s) executed by the Owners relating to the Association prior to the dates set forth below. In designating a Voting Member, all Owners must sign below.

VOTING MEMBER

________________________________________________

(type or print)

OWNERS:

Signature: Printed Name: Date: Signature: Printed Name: Date: Signature: Printed Name: Date: Signature: Printed Name: Date:

Signature: Printed Name: Date:

2

Owner ID/Villa/Week:

CERTIFICATE OF VOTING MEMBER - ENTITY [This Certificate of Voting Member (Entity) form should only be used for Interests owned by entities (e.g. partnerships, corporations, trusts, limited liability companies). For Interests owned by multiple individuals, please use the Certificate of Voting Member (Individuals) form on page 1.] The undersigned, being the owner (the “Owner”), of ownership interest(s) in the program or property known as Marriott’s Monarch which is managed and administered by Monarch at Sea Pines Owners’ Association, Inc. (the "Association"), hereby designates the below-listed individual as the “Voting Member” to cast the vote, on Owner’s behalf, until this Certificate of Voting Member is revoked or suspended by written instrument executed by Owner. Owner hereby acknowledges and agrees that the execution and delivery of this Certificate of Voting Member shall automatically revoke, and shall entirely replace and supersede, any voting certificate(s) executed by Owner for the Association prior to the date set forth below.

By the execution of this Certificate of Voting Member in the space provided below, the individual signing this Certificate of Voting Member, on behalf of Owner, represents that he/she is authorized to sign this Certificate of Voting Member on behalf of the Owner.

VOTING MEMBER

________________________________________________

(type or print)

ENTITY OWNER LEGAL NAME: Signed By: Printed Name: As its (choose one): President Vice President General Partner Other Date: ATTEST: (Attest not required if entity is a Trust) Signed By: Printed Name: As its (choose one): Secretary Assistant Secretary