VACATION TIME AT VICC COUNCIL OF CO-OWNERS, INC

VACATION TIME AT VICC COUNCIL OF CO-OWNERS, INC.

ANSWERS TO QUESTIONS FREQUENTLY ASKED BY CO-OWNERS

Question: How does Vacation Time at VICC compare to other resorts in RCI?

Answer: Vacation Time at VICC had 622 weeks deposited into the RCI space bank for the 2009 interval year. During the same year, we had 613 exchange guests, or an occupancy of 99%. Our occupancy has never been below 90%.

Exchange guests are asked to fill out comment cards concerning their vacation experience. During 2009, 232 of our exchange guests filled out and returned comment cards to RCI. A summary of comments and ratings of Vacation Time at VICC compared to ALL North American resorts is as follows:

VICC ALL*

------- -------

Check-in / check-out procedure 4.8 4.5

Resort hospitality 4.6 4.4

Resort maintenance 4.3 4.3

Resort amenities 3.8 4.1

Resort activities 3.3 3.8

Unit quality 4.4 4.0

Unit maintenance 4.5 4.1

Unit housekeeping 4.4 4.2

Unit amenities 4.6 4.3

Overall vacation 4.4 4.2

Staff response 4.5 4.3

Atmosphere 4.4 4.2

These ratings are based on a scale of 1 to 5, as follows:

Excellent 5 Average 3 Poor 1

Above average 4 below average 2 * All North American Resorts

As you can see, our evaluations are about average for all North American resorts. We have no control over resort maintenance or resort amenities since these are managed by the overall condominium association. Our Unit (interior) ratings are slightly above average. We do not have any organized social activities or programs. Our only on-site amenity is a swimming pool. Golf, exercise, swimming and dining facilities are, however, available at the Valley International Country Club nearby on a fee basis. The absence of on-site activities and amenities does keep our maintenance costs down.

Question: I want to sell my timeshare. How do I go about doing this?

Answer: Traditional residential real estate brokers do not generally get involved in the listing or sale of timeshares since the sales prices are small and the commissions therefore are negligible.

There are a few brokers who specialize in resale of timeshare and resort properties. Some want upfront fees for advertising and promotion or so-called "appraisal fees". Several of our co-owners have commented unfavorably on the lack of performance of these brokers. We suggest that you only use brokers whose commission payment is contingent on funding of the sale. You will probably have to sell your timeshare yourself, either to a friend or relative, or through the classified section of a newspaper in a major metropolitan area or on the Internet. America On-Line and many other Internet companies, such as The Timeshare Users Group (TUG), have classified ad sections.

Question: Why are the annual assessments due on January 1 of each year?

Answer: A co-owner may space bank his week of ownership with RCI up to two years in advance. It behooves us to make our assessment billings due at the earliest possible date to minimize having to honor RCI inbound space banking of weeks for which maintenance assessments have not been paid. Many resorts require that the maintenance assessment be paid for each year placed into the space bank. We feel this would be financially burdensome to our co-owners, and only require that the current year assessment be paid when due.

Question: Why is a late charge assessed for payment after January 10?

Answer: When assessments are unpaid, the Declaration prohibits use of the unit by the owner. In order to prevent such use, the on-site management office must be advised of non-payment, and a block on space bank use must be filed with RCI. Also, additional billing and collection efforts must be undertaken. The $50 late charge is an attempt to recover some of the extra costs associated with these efforts.

Question: Why doesn't the management company have a rental program for units owned by individuals?

Answer: There is very little rental demand for our units. Our office is only open approximately 20 hours per week, which precludes daily, hotel type rentals. Most of our co-owners space bank or use their units so that very few units would ever be available for rental.

Question: If I cannot use my week, why can't I use some other week during the year, which is not being used by the owner?

Answer: We do not operate any type of space banking or exchange program for our condominium weeks. RCI does have a program for making internal exchanges, and this program should be used if you desire to come to Brownsville and stay at a time other than the week, which you own.

Question: I am unable to afford the annual maintenance assessments and have been unable to sell my unit. Is there any way to be relieved of the continuing obligation for the maintenance assessment?

Answer: The maintenance assessment is an obligation, which an owner assumed with ownership, and is a personal debt of the owner as well as a lien against the property. The only way to terminate this obligation is to sell or give your unit to someone willing to undertake the responsibility of ownership. The personal liability of the owner can also be terminated through bankruptcy proceedings. In financial hardship cases, the Council will accept a deed from an owner if maintenance assessments are paid for the current and the following year, plus the payment of $195 to the management company (Westchester Corporation) for processing the transaction ($175 transfer fee and a $20 fee charged by the Cameron County Clerk for recording the Deed).

Question: Why has the maintenance assessment gone up?

Answer: As costs and expenses increase, so must the annual assessment increase.

We believe our costs to be one of the lowest in the industry, and hope to keep them so. Since inception in 1984, our assessment has increased from $187 in 1984 (the first year of operation) to $390 for the year 2010 (our 27th year of operation), an average increase of approximately 3% per year. This is lower than the rate of inflation during this period, and considerably lower than the average for all North American timeshare resorts.. We do not have the extensive recreational facilities and programs of many larger and newer full service resorts and therefore our operating expenses are lower.

Question: When is the annual meeting held?

Answer: Annual meetings are held on the first Tuesday of each December. Notices of the exact date are mailed to all co-owners during the 30-day period preceding the meeting date along with the annual maintenance assessment invoice. Special meetings are called when necessary. We welcome any questions or suggestions from co-owners. The books and records of the Council of Co-Owners are available for inspection by any co-owner during weekday business hours at 1609 Catalina Bay Ct, Granbury Texas 76048.

Question: Who do I notify when my address changes?

Answer: It is important to notify both the Vacation Time Administrative Office and RCI (if you are a member) of any changes in your address, telephone numbers, etc. Change notifications must be in writing. Our mailing address for changes is: 1609 Catalina Bay Ct, Granbury, Texas 76048-1464. The email address is: pickenslee@aol.com You must notify RCI separately.

Question: Who do I contact with questions concerning my ownership, unit, exchanges, account, etc?

Answer: Administrative Office (Granbury): Lee Pickens 817-573-0718

Resort Office (Brownsville); Rick Ruenes 956-544-5302

RCI (spacebank deposits, exchanges, etc.) 800-338-7777

Question: Why does Vacation Time Condos at VICC not cooperate with timeshare exchange networks other than RCI?

Answer: We are affiliated with the largest and best of the timeshare exchange networks, Resort Condominiums International (RCI). Our Resort Affiliation and Owners Association Agreement with RCI provides that "... all requests for exchanges at the Resort, both internal and external, shall be processed through RCI.

Affiliation with more than one exchange network would greatly increase clerical effort and expense of the Council of Co-Owners. Cooperating with other exchange networks without an affiliation agreement would leave us without the ability to revoke space banking by owners who are delinquent in paying their assessments. Such ability is one of our important controls in collecting delinquent assessments.

Each owner does have the right to permit guests the use of his unit/week. We do require that the owner authorize guest use of a unit/week in writing to the Council of Co-Owners, providing us with the name, address and telephone number of the guest.

Question: Why do we not participate in the RCI Points program?

Answer: We have only 15 timeshare units and it is not economically feasible to operate a "hotel" type front desk and reservation system that is required when participating in the Points program. Our front desk is only open about 20 hours per week.

Question: What are we doing to maintain our affiliation in good standing with RCI and our trading power for exchange purposes?

Answer: We are continuously involved in maintaining and upgrading the quality of our condominium units, including routine replacement of linens and house wares and carpet cleaning. Major refurbishing, including replacement of floor coverings, window coverings, furniture and appliances and repainting, is also an ongoing activity. Upgrading of our unit amenities over the years has included addition of the following: a second TV, microwave oven, VCR, DVD, a second telephone, vacuum cleaner, electronic wall safe, blender, iron and ironing board in each of our units. We also provide a comprehensive information and tourist attraction directory in each of our units to facilitate enjoyment of the area by our guests. Our on-site manager holds a complimentary Sunday morning coffee each week to answer questions and further familiarize our guests with the attractions of the Brownsville/Matamoros/South Padre area. Rest assured that each of us involved in the management and operation of Vacation Time Condos at VICC is committed to making visits by our owners and guests as pleasurable as possible.

Rev 07/09/2010