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Re: NEW OWNERS MEETING FEBRUARY 25, 2010

Please remember to make as strong an attempt as possible to ensure any owner you give your proxy to is not an employee or otherwise affiliated with any company doing business with the developer. I know it's tough, just do your best to be careful! Thanks for the great response Jonathan. I'm sorry to hear Stephanie is so unhappy. While I'm an SVO owner but not KORV/KORVN, I think the KORVN are very attractive units. I don't understand why you would say KORVN "looks like a cheap apartment complex ", I find them to be among the best timeshares I've ever stayed in - not the best mind you but pretty darn near the best. I also prefer units with ovens, especially when they are 1BR/2BR but since a large number of vacationers don't use the oven I can understand why the developer didn't include them. I do know quite a few people who have traveled to Maui and avoid KORVN over holidays specifically becasue they can't cook a turkey or other large meat item in the convection oven! I understand if stairs are an issue for your family that will impact your appreciation of a vacation. But when you bought Stephanie, you could see the size of the complex and how much larger it is than the South Phase. You father's decision to stay in the unit is not due to elevator location since that only affects access within the building. Please do not misunderstand me ... I agree it would be better to have more elevators. I'm just saying you appear to be blaming the centralized elevators on why your father couldn't leave the building whereas I feel strongly the size of the complex (which was very obvious during construction and sales) and Maui activities in general are the limiting factor on the ability for someone in your father's condition. Back to topic, when in a recession or for the most part when people need to be careful with money, I believe people learn how to spend less. This is true for companies as well, and the articles I read in the Wall Street Hournal have mentioned on multiple occassons that consumers have been spending less and saving more money for the last 1-2 years of the "Great" Recession. Why then have the developers / managers forced cost increases on timeshare owners? I do not believe they have the motivation to contain costs since they do not bear the impact of it, their fees are higher since usually management fees are based on percentage, and in many cases the developer is able to repossess units (usually due to loans on the unit) and re-sell them later. I find this provides the developer with more incentive to support actions causing owners to lose units rather than retain them. Also, I would like to know what happens when the developer repossesses a unit where maintenance has not been paid. I spoke with SVO regarding this when I read a newsletter for Sheraton Vistana Villages where they stated the owners bear the cost of unpaid maintenance. When I called to ask how I could buy the units which were foreclosed on, I was told [effectively the way the conversation went after I have to re-word my question multiple times] the developer took possession of the unit and re-sold it. The HOA is not taking possession. I do not have a formal written response yet, but I would expect if maintenance delinquencies cause foreclosure, the HOA would gain control of the unit to resell, not the developer. The only reason the developer rather than HOA should have any right to taking over the unit is if a loan on the unit were delinquent. In either case, if dues are delinquent, the HOA should have lien rights on the unit so during foreclosure the HOA is able to recoup the maintenance and fees and penalties WHICH ULTIMATELY MEANS OWNERS SHOULD NOT BE BEARING THE COST OF DELINQUENCIES. If dues are not delinquent but the loan is, when the developer forecloses, the developer is the new owner responsible for the maintenance. What am I missing? If the developer gets the unit in foreclosure without paying the HOA delinquencies, they are getting a unit which has been subsidized by the owners. That should never happen and I don't understand how that could even be legal.