Monarch at Sea Pines Owners' Association, Inc.

2007 ESTIMATED OPERATING BUDGET

FOR PERIOD FROM DECEMBER 30, 2006 TO DECEMBER 28, 2007

2 BEDROOM
Monthly Total Annual Total 6,150
$ $ (UNIT WEEK)

OPERATING EXPENSES

ACCOUNTING $ 7,508 $ 90,098 $ 14.65

ACTIVITIES 4,074 48,893 7.95
ADMINISTRATION 20,613 247,354 40.22
AUDIT FEE 871 10,455 1.70
BAD DEBT EXPENSE 379 4,551 0.74
BILLING AND COLLECTIONS 3,921 47,048 7.65
BOARD OF DIRECTORS 1,122 13,469 2.19
CABLE TELEVISION 2,542 30,504 4.96
CREDIT CARD FEE 5,192 62,300 10.13
EASEMENT AGREEMENT 9,051 108,609 17.66
ELECTRICITY 20,208 242,495 39.43
FEES - TENNIS (2) 1,481 17,774 2.89
FRONT DESK 16,508 198,092 32.21
GAS 4,792 57,503 9.35
HIGH SPEED INTERNET 1,333 15,990 2.60
HOUSEKEEPING 72,068 864,813 140.62
HUMAN RESOURCES 3,311 39,729 6.46
INCOME TAX 2,675 32,103 5.22
INSURANCE 21,125 253,503 41.22
LANDSCAPING 6,647 79,766 12.97
LEGAL - - 0.00
LOBBY - - 0.00
LOSS PREVENTION / SECURITY 6,581 78,966 12.84
MAINTENANCE 30,499 365,987 59.51
MANAGEMENT FEE 35,978 431,730 70.20
OTHER INCOME (12,259) (147,109) (23.92)
OWNER LIAISON TO THE BOARD 502 6,027 0.98
OWNER SERVICES 3,495 41,943 6.82
PEST CONTROL 477 5,720 0.93
POOL MAINTENANCE 4,310 51,722 8.41
POSTAGE AND PRINTING 1,420 17,036 2.77
REFUSE COLLECTION 1,543 18,512 3.01
TELEPHONE 4,126 49,508 8.05
WATER AND SEWER 3,793 45,510 7.40
TOTAL OPERATING EXPENSES $ 285,883 $ 3,430,601 $ 557.82

RESERVES (1)

TOTAL RESERVES $ 120,438 $ 1,445,250 $ 235.00

OPERATING EXPENSES AND RESERVES $ 406,321 $ 4,875,851 $ 792.82

PROPERTY TAXES 35,511 426,134 69.29

NET OWNER MAINTENANCE FEE $ 441,832 $ 5,301,985 $ 862.11

 Monarch at Sea Pines Owners' Association, Inc.
2007 ESTIMATED OPERATING BUDGET NOTES
FOR PERIOD FROM DECEMBER 30, 2006 TO DECEMBER 28, 2007

Notes to the Proposed 2007 (Maintenance Fee) Budget:

1) The reserves are for deferred maintenance and capital expenditures based on the estimated useful life replacement cost of each reserve item and include the
following categories:

Furnishings - Units: Replacement of unit furnishings, equipment and appliances

Common Elements: Replacement and repair of mechanical systems, building refinishing, roof replacement, building related equipment
items, pavement resurfacing, site lighting, and irrigation system for areas designated as Common Elements, as defined in the Master
Deed.

The estimated lives and estimated replacement cost for each of the components are as follows:
Anticipated
Estimated Estimated 2007 Beginning
Replacement Remaining Funding Balance as of
Cost Useful Life Requirements 12/30/2006
Components
Furniture, Fixtures, and Equipment $ 10,660,579 3-25 $ 1,233,462 $ 253,081
External Building Maintenance 453,066 10-25 52,421 10,756
Common Area Rehabilitation 745,921 6-25 86,305 17,708
Roof Replacement 393,197 20-25 45,494 9,334
Pavement Resurfacing 238,258 3-19 27,567 5,656
TOTAL $ 12,491,021 $ 1,445,249 $ 296,535

2) The "Tennis" line item consists of reimbursement of the estimated cost of maintenance and repairs, excluding reserves, of the tennis courts and associated improvements owned
by the Developer. The courts are located directly across the street from the project on South Forest Beach Drive. The figures include the estimated costs of the services
anticipated to be provided by Van der Meer Tennis University. The use of the tennis courts by Monarch at Sea Pines Owners' Association, Inc. may not be exclusive, in which
case, the foregoing cost will be shared on a proportionate basis based upon use by other owners of other MVCI time sharing projects on Hilton Head Island or other licensees or
invitees of the Developer. Capitalized terms not defined in these footnotes have the meaning given to them in the Monarch at Sea Pines Owners' Association, Inc. Public Offering
Statement Text or Master Deed.
 Frequently Asked Maintenance Fee Questions

Q. What are maintenance fees and who determines them?

A. Maintenance fees are those funds collected by your Association to cover the cost of operating the
resort, future maintenance and refurbishment. Maintenance fees are approved by your Association’s
Board of Directors and includes:

Operating Fees: These funds cover the cost of all resort expenses incurred on an annual basis, e.g.
electricity, phone, maintenance and housekeeping.

Reserve Fee: This is planned funding of capital replacement expenditures for replacement of large
items, e.g. refrigerators, roof repairs and villa furnishings.

Property Tax: These taxes are assessed by the county in which the resort is located and billed to
each owner through the maintenance fee.

Q. When are maintenance fees due?

A. Please refer to your maintenance fee invoice for your exact due date. Please remember to remit
payments on time. Interest and late charges will be assessed on late, unpaid balances according to
your Association’s guidelines.

Q. What are my maintenance fee payment options?

A. Option 1: You may pay 24 hours a day, 7 days per week at www.vacationclub.com.

Option 2: Mail your check payable to Marriott Vacation Club International (with or without your
maintenance fee coupon) to:

Marriott Vacation Club International

P.O. Box 382056
Pittsburgh, PA 15250-8056
(Please include your customer number on your check)

Option 3: Contact a Financial Services Representative at 1-800-845-4226 or 1-801-468-4089. This

option is available Monday – Friday from 9:00 a.m. – 8:00 p.m., and Saturday from 9:00 a.m. – 5:00
p.m. ET.

* Deliveries that require a signature (e.g. certified, registered, or overnight) should be mailed to:

Marriott Vacation Club International

Attn: 382056
500 Ross Street 154-0460
Pittsburgh, PA 15250-8056