TKAU VOA Timeshare Disclosure Statement - Amended 11.16.17 by Timbers Resorts

961170.18 RegistrationNoTD-216 DateAcceptedMarch21,2017 DateRevisedJuly25,2022 DISCLOSURESTATEMENTCOVERPAGE ON THETKRESORTVACATIONOWNERSHIPPROJECT akaTIMBERSKAUA’IOCEANCLUB&RESIDENCES (NameofTimeSharePlanorBuilding) 3770Ala’oliWay,Lihue,HI96766 (Location) READTHIS DISCLOSURE STATEMENT BEFORESIGNING ANYTHING Thedisclosurestatementispreparedandissuedbythedeveloperofthetimeshareplan.It isNOTpreparedorissuedbytheStateofHawaii.THESTATEOFHAWAIIHASNOT PASSEDONTHEMERITSOFTHETIMESHAREPLANDESCRIBEDHEREIN.

2. PLANMANAGER

AssistingtheAssociationwithenforcementoftheClubDeclaration,the Association’scharter,bylaws,rulesandregulations,theReservation Procedures(asdefinedbelow),andanyvalidamendments,modifications,and supplementsthereto(the“ClubDocuments”).

(3) ImplementationofallAssociationactionsanddecisions.

(2)

ProvidingguidanceandassistancetotheBoard.

TheResponsibleManagingEmployeeofthePlanManagerisEricCucchi,whoseofficeis locatedat3770Ala’oliWay,Lihue,Hawaii96766.

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ThePlanManager’sdutiesshallbethosesetforthinTheFirstAmendedandRestatedTK ResortVacationOwnershipProjectDeclarationofCovenants,ConditionsandRestrictions recordedattheBureauofConveyancesoftheStateofHawaiionJanuary13,2017as DocumentNo.A-62220726,asamendedfromtimetotime(the“ClubDeclaration”),in themanagementcontractwiththeAssociation,andthosesetforthinHawaii AdministrativeRules§16-106-12(d),asamendedfromtimetotime,andshallinclude,but maynotbelimitedto,thefollowing:

ThePlanManagerisresponsibleforoverseeingtheday-to-dayoperationsofthe“Club Units”(asdefinedinParagraph3below)andthefurnishingsthereinandtheTKResort VacationOwnershipproject(the“Project”)onbehalfoftheTKResortVacationOwner’s Association,asfurtherdescribedinParagraph15below(the“Association”),underthe supervisionoftheboardofdirectorsoftheAssociation(“Board”).

1. DEVELOPER

DISCLOSURESTATEMENT

ThePlanManageristheAssociation’sprimaryliaisonwiththemanageroftheAssociation ofApartmentOwnersofTKResortCondominium(the“CondominiumAssociation”).At present,thePlanManagerisalsothemanagerfortheCondominiumAssociation(inits capacityasmanageroftheCondominiumAssociation,the“ManagingAgent”).

TheDeveloperisTowerKauaiLagoons9B,LLC,whosebusinessaddressis3770Ala’oli Way,Lihue,Hawaii96766(the"Developer").

ThePlanManagerisTimbersHawaiiRealEstateLLC,whosebusinessaddressis 201MainStreet,Suite202,Carbondale,Colorado81623(the“PlanManager”).

THETKRESORTVACATIONOWNERSHIPPROJECT AKA TIMBERSKAUA’IOCEANCLUB&RESIDENCES

(1)

(10)

(13)

3. TIMESHAREPLAN

(16)

(21)

AssistingtheAssociationincomplyingwithapplicablelaws,regulationsand theClubDocuments.

(12) MaintainingAssociationpropertyinthemannerrequiredbytheClub Documents.

(8) ObtainingandmaintenanceofinsurancefortheAssociation.

RecommendingappropriatereservefundsonbehalfoftheAssociation.

OtherdutiesasmaybedelegatedtothePlanManagerbytheBoardfromtime totime.

MakingtheminutesofBoardandAssociationmeetingsandtheAssociation’s financialstatementsavailableforexaminationbyOwnersatconvenienthours andprovidingsuchminutesandstatementsuponanOwner’srequest.

(20)

(15) Providingreservation,housekeeping,transportation/valetparking,and exchangeservicesinaccordancewiththeClubDocuments.

(5) PaymentofallaccountspayableoftheAssociationfromfundsofthe Association.

(19)

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(9) Hiring,paying,supervising,anddischargingemployeesandcontractors providingservicestotheAssociation.

(14)

(6)

ProvidingOwnerswithacopyoftheCondominiumhouserulesandenforcing thehouserulesandClubDocuments.

(11) ManagingcontractsonbehalfoftheAssociation.

MaintenanceofallfinancialrecordsoftheAssociationandpreparationof annualandsupplementalbudgets.

MarketingtheProjectandClubInterests,byutilizingthetrademarks,service marks,logosandothersimilarindiciaofTimbersResortsoranyaffiliate, including,withoutlimitation,anycompanyrelatedtoTimbersResorts,Timbers Company,TimbersCollection,orTimbersExchange,LLC.

(17)

(7) Coordinationofaudits.

PeriodicinspectionofClubUnitsforqualitycompliance.

ProvidingOwnerswithastatementoftheAssociation’sreceiptsand expenditures.

Thetimeshareplanisanownershipplanconsistingofundividedinterestsinapartmentsin theTKResortCondominium(“Condominium”),whichhavebeenannexedtotheProject andarelistedinExhibit“F”herein(“ClubUnits”),assuchinterestsarefurtherdescribed inExhibit“D”totheClubDeclaration(“ClubInterests”).EachownerofaClubInterest (“Owner”)shallhavetheobligationtopayannualduesbasedonbudgetssetbythe Association,andsuchotherchargesasmaybeimposedfromtimetotimebythe AssociationorrelatedtotheOwners’useofClubUnits.Ownersmustagreetoabideby theClubDocumentsoftheAssociation,andtheCondominium’sdeclaration (“CondominiumDeclaration”),bylaws,CondominiumMap(definedbelow),andhouse rules(collectively,the“CondominiumDocuments”),asthesamemaybeamendedfrom timetotime.TheDeveloperisalsothedeveloperoftheCondominium.Ownersshallhave therighttoreserveandutilizetheirallottedClubInterestsinaccordancewiththetermsand

Providingnon-routineservicesfromtimetotime,asmaybeauthorizedbythe Association.

(4) CollectionsofamountsduetotheAssociation.

(18)

TheClubUnitsarelocatedwithintheCondominium,whichinturn,islocatedwithinthe 450-acreresortprojectknownas“TheHokualaResort.”TheHokualaResortproperty currentlyincludesan18-holegolfcourse,internalshuttle,andthesixty-five(65)residence Condominium,whichCondominiumincludesaspa,apublicrestaurant,hikingandbiking trails,andshorelinetrails.AmenitiesoftheCondominiumthatmaybemadeavailableto Ownersincludethespaandvaletparking.AmenitieswithintheCondominiumandthe broaderHokualaResort,whetherexistingorplanned,maychangefromtimetotimeand, inthecaseofplannedamenities,mayormaynotbeconstructed.

UponcheckinginfortheOwner’speriodofexclusivepossessionandoccupancyofthe ClubUnitreservedpursuanttotheReservationProcedures(“UsePeriod”),eachOwner maybeassigned(i)aparkingspaceand(ii)two(2)softstoragebinsforstorageof non-hazardous,non-perishablepersonalpropertyofanOwnerforeachClubInterestheorshe owns,forsuchOwner’sexclusiveuseduringtheirreservedUsePeriod.Ownersarepermitted butnotrequiredtovaletparktheirvehiclesduringtheirreservedUsePeriods.

conditionsoftheProjectassetforthinthe“ReservationProcedures,”theformofwhichis attachedheretoasExhibit“E,”asamendedfromtimetotime.TheDeveloperretains variousreservedrightstoaltertheProjectinaccordancewiththetermsoftheClub Documents.Inallotherrespects,andtotheextenttheDeveloperownsunsoldClub Interests,theDevelopershallhavealltherightsandresponsibilitiesofanOwner.

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Therearetwenty-four(24)ClubUnitslocatedwithinBuildingsAandBofthe Condominium.Therecordedcondominiummapdepictingtheoveralllayoutofthe condominium,locationofbuildings,structures,andappurtenances,andfloorplanof differentunitsissetforthintheattachedExhibit“C”(the“CondominiumMap”).Club Unitsrangefrom3to4bedrooms.ClubUnitsaredividedintoeithersix(6)undivided ClubInterestsortwelve(12)undividedClubInterests.Ownersofaone-sixth(“Kaiholo Program”)undividedshareshallbeentitledtouseaClubUnitthatiswithintheKaiholo Programforatleastsix(6)weeksinagiven“ClubYear”(asdefinedintheClub DeclarationandfurtherdescribedintheReservationProcedures).Ownersofaone-twelfth (“MaliulaProgram”)undividedshareshallbeentitledtouseaClubUnitthatiswithinthe MaliulaProgramforatleastthree(3)weeksinaClubYear.TheReservationProcedures aremorefullysetforthintheClubDocumentsthatareattachedhereto.Itisimportantto notethatwhileanOwnerwillholdfeetitletoaClubInterestinaspecificClubUnit,the ReservationProceduresallowOwnersaccesstoreservetheuseofoneofseveralequivalent ClubUnitswithineachspecificintervalprogram.TheconstructionofallClubUnitshas beencompleted.BoththeAssociationandtheCondominiumAssociationgoverningthe Projectarerequiredtomaintaininsuranceforallexpectedhazardsandfordamageto furniture,fixturesandequipmentwithinClubUnits.

UnderParagraph10.6.1oftheClubDeclaration,Owners,theAssociation,theBoard,the PlanManager,theDeveloperandtheirrespectiverepresentativesareprovidedwitha mechanismtoresolve“Disputes”(assuchtermisdefinedintheClubDeclaration).Parties withaDisputemustfirstnotifytheotherpartyoftheirdispute,negotiateingoodfaith,and mediatebeforepursuinglitigation.

4. DESCRIPTIONOFTIMESHAREUNITS,BUILDING,LOCATION,ETC.

B. AnysuchOwner’sUsePeriods;providedthatsuchamendmentisapplied uniformlytoallUsePeriodsinthesameClubprogram(KaiholoProgram,Maliula Program,ortheirreplacements)anddoesnotreducethenumberofUsePeriodsafforded anOwner;or

C. AnysuchOwner’sShare(definedbelow)orvotingrights,exceptinthe eventofannexationordeannexationofClubUnitstotheProject.

TheDeveloperhastherighttoannexadditionalCondominiumunits(“Apartments”)into theProject,makingsuchApartmentssubjecttotheClubDocumentsand,totheextentthe DeveloperownsallClubInterestswithinaClubUnit,hastherighttoremoveanysuch ClubUnitfromtheProject.Uponsuchadditionorremoval,theproratedamountofthe costsofmaintaining,improving,repairingandreplacingtheClubUnitsandthefurnishing therein,andoperatingtheProject,including,withoutlimitation,allchargesimposedonall ClubUnits(otherthanthosetobechargedaspersonalcharges),assuchcostsarefurther describedinChapter8oftheClubDeclaration(the“ClubExpenses”)andvoting

A. AnysuchOwner’s1/6th or1/12th undividedinterestastenant-in-commonin aClubUnit;

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AcompletelistingofallClubUnits,theirprogramdescription(KaiholoorMaliula),their UnitType,andthenumberofbedroomsandbathroomsperClubUnitisattachedheretoas Exhibit“F.”

Therearefour(4)different“UnitTypes”withintheProject.MaliulaProgramparticipants utilizeType“F”Units,whichconsistofthree(3)bedroomunits,eachwithsleeping accommodationsforeight(8)persons.KaiholoProgramparticipantsutilizeeitherUnit Type“A,”UnitType“B,”orUnitType“D.”UnitType“A,”and“B”ClubUnitsconsist ofthree(3)bedrooms,eachwithsleepingaccommodationsforeight(8)persons.Unit Type“D”ClubUnitsconsistoffour(4)bedrooms,eachwithsleepingaccommodations forten(10)persons.Ownersarenotguaranteedtheuseandoccupancyofanyparticular ClubUnit.AnOwner’sactualuseandoccupancywilldependonitsUsePeriodsas confirmedpursuanttotheReservationProcedures.Priorityofreservationrightsrotates pursuanttotheClubDocuments.

Whatthismeansisthattheamountoftimeyouareentitledtoreservecannotbereduced withoutyourconsent,butthemethodbywhichyoureserveUsePeriodsmaychangeso longasthechangesapplyuniformlytoallOwnerswithinauseprogram.ClubUnitsmay onlybeutilizedbyOwners(ortheDevelopertotheextentthatthereareunsoldinterests ownedbytheDeveloper)withintheMaliulaandKaiholoprogramsandtheirguests, inviteesorlesseespursuanttotheReservationProcedures.WeeksnotreservedbyOwners, ortheDeveloperasanOwner,willnotbemadeavailabletothegeneralpublicorowners ofotherTimbersproperties.

PLEASEREADTHERESERVATIONPROCEDURESCAREFULLY.The DeveloperisallowedtochangetheReservationProcedureswithoutOwnerconsent providedthatsuchchangesdonotmateriallydiminishoradverselyaffectanOwner’srights to:

percentagesallocabletoeachClubInterest(theClubExpensesandvotingpercentages allocabletoeachClubInterestarecollectively,the“Shares”)shallbeadjustedaccordingly suchthattheSharesshallremainproratedamongstallClubInterestsinaccordancewith theClubDeclaration,withthetotalpercentageofSharesequalingonehundredpercent (100%),assetforthinExhibit“D”totheClubDeclaration.

5. MULTIPLELOCATIONTIMESHAREPLAN

N/A

OwnersofClubInterestsaremembersofboththeAssociationandtheCondominium Association.Ownershavetherighttovoteonmattersbeforethemembershipofboththe AssociationandtheCondominiumAssociation.Withrespecttomattersbeforethe CondominiumAssociation,atleasttwenty(20)daysbeforetheannualmeetingofthe CondominiumAssociationandten(10)daysbeforeanyspecialmeetingofthe CondominiumAssociation,theAssociationBoardshallobtaintheagenda(totheextent available)andallotherinformationwhichisreasonablyavailableonthematterstobevoted uponatsuchmeeting.TheAssociationBoardshallprovidenoticeoftheagendaand informationtoeachOwner,togetherwithaballottobereturnedbyeachOwner.Theballot willrequestthateachOwnerindicate(totheextentfeasible)themannersuchOwner desirestovoteuponeachmatterontheagenda.TheBoardshallappointarepresentative tovoteonbehalfoftheOwnersofallClubInterestsineachClubUnit.Therepresentative willvoteinthemannerthateachOwnerdirects.IfanOwnerdoesnotreturnaballot,the Board,throughitsrepresentative,maycastavoteonbehalfofsuchClubUnitinthemanner itconsiderstobeinthebestinterestsoftheOwners.Bydefault,Ownersappointthe AssociationBoardasitsproxytoactonhis/her/itsbehalfonallmattersbeforethe CondominiumAssociationmembership.

IntheeventanOwnerdesirestosellorconveyorotherwisetransferownershipofsuch Owner’sClubInterestandforsolongasDeveloperhasClubIntereststosellintheClub ortheDeveloperoranaffiliateofDeveloperisthePlanManager,whichevershallbelater, DevelopershallhavetherightoffirstrefusaltopurchasetheClubInterestunderthesame termsandconditions(includingfinancingterms)asmaybeofferedtoorbyabonafide thirdpartyexceptasotherwiseprovidedinthisparagraph.Accordingly,eachOwner desiringtosellhisorherClubInterestmustnotifyDeveloperinwritingofhisorherintent

6. TIMESHAREPLANINACONDOMINIUM

RESTRAINTSONTRANSFERORPURCHASER’SINTEREST

TheClubUnitsarelocatedwithintheCondominium,whichconsistsofsixty-eight(68) Apartments.OfthoseApartments,three(3)are“CommercialUnits”(assuchtermis definedintheCondominiumDeclaration),forty-one(41)arewholeownershipunits,and twenty-four(24)ApartmentshavebeensubmittedtotheProjectasClubUnits.

ForsolongastheDeveloperownsanyunsoldClubInterest,orforsolongastheDeveloper oranaffiliateoftheDeveloperisthePlanManager,theDevelopershallhavearightof firstrefusaltopurchaseanyClubInterestfromanOwnerwhodesirestosell.Therightof firstrefusalissetforthinParagraph7.13oftheClubDeclarationreadsasfollows:

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Thereisaseven(7)calendar-dayperiodofmutualrescission,oralongerperiodas specifiedintheSalesContract(asdefinedinParagraph14below).Suchrescissionshall bewithoutpenaltyandeffectedbymailingordeliveringanoticeofcancellationtothe otherpartyattheaddressspecifiedontheSalesContract.Thenoticeofcancellationshall beeffectiveuponmailingordeliverytotheotherparty.Therescissionperiodshallbe measuredfromthelatterof(1)executionoftheSalesContract,or(2)receiptofrequired disclosuredocuments,asrequiredbylaw.EachpurchaserofaClubInterestintheProject (“Purchaser”)willbegivenanoticeofcancellationformwiththepertinentinformation filledinbytheDeveloperatthetimeofpurchase(seeFormTS-10).

SeeattachedExhibit“A.”ThereisanexistingmortgageenteredintobytheDeveloperand encumberingtitletotheproperty,havingacurrentbalanceofapproximately $35,000,000.00(the“Mortgage”).TheMortgageisa“blanketlien”ontheProject,asthat termisdefinedintheHawaiiRevisedStatutes(“HRS”)§514E-1,whichcurrentlydefines ablanketlienas:

6 961170.18 tolistorsellhisorherClubInterest.TheOwner’swrittennoticetotheDevelopermust includetheproposedlisting,offerpriceandgeneraltermsoftheproposedlistingorsale. Uponreceiptofsuchwrittennotice,theDevelopershallhavefifteen(15)dayswithin whichtonotifytheOwnerinwritingastowhethertheDeveloperelectstoexerciseitsright offirstrefusalsetforththerein.IfDeveloperelectstoexerciseitsrightoffirstrefusal, closingshalloccurnolaterthansixty(60)daysafterDevelopernotifiestheOwnerin writing(withinsuchfifteen(15)dayperiod)ofitsdecisiontopurchasetheClubInterest. IfDeveloperelectsnottoexerciseitsrightoffirstrefusalorfailstonotifytheOwnerin writingofDeveloper’selectiontoexerciseitsrightoffirstrefusalwithinsuchfifteen(15) dayperiod,theOwnershallbeentitled,foraperiodofseven(7)monthsthereafter,tolist Owner’sClubInterestwithathirdpartyresaleagentorselltheClubInteresttoathird partyforapriceequaltoorgreaterthanthepriceofferedtoDeveloperwithoutfurther noticetoDeveloper.IftheOwnerthenfailstoselltheClubInterestduringsuchseven(7) monthperiodinaccordancewiththeprecedingsentence,theDeveloper’srightoffirst refusalwillbereinstatedandcontinuetobindtheOwnerinaccordancewiththeClub Declaration.UponsaleoftheClubInteresttoathirdparty,theClubDeclaration,and Developer’srightoffirstrefusal,willbindthesuccessorOwner.

8. MUTUALRESCISSIONPROVISIONANDCLOSING

TITLEDEFECTSORENCUMBRANCES

“anymortgage,deedoftrust,optiontopurchase,masterlease,vendor’slien orinterestunderacontractoragreementofsale,oranyotherlienor encumbrancethat(i)affectsmorethanonetimeshareinteresteitherdirectly orbyreasonofaffectinganentiretimeshareunitorthepropertyupon whichthetimeshareunittobeusedbythepurchasersislocated,and (ii)securesorevidencestheobligationtopaymoneyortosellorconvey thepropertyandthatauthorizes,permits,orrequirestheforeclosureand saleorotherdefeasanceofthepropertyaffected; providedthatforthe purposeofthisChapter[514EoftheHRS]thefollowingshallnotbe consideredblanketliens:

(5)Anylienforcostsortrustee’sfeeschargedbyatrusteeholding titletotimeshareunitspursuanttoatrustcreatedunder[HRS] section 514E-19; providedthatthecostsortrustee’sfeesarenotyetdueand payable.”

(1)Thelienofcurrentrealpropertytaxes;

Anysalethathasclosedcannotbereversedorundonebythelenderoranysubsequent Developer.Furthermore,foreclosurebythelenderpriortothesaleofallClubInterests willnotimpacttherightofanyPurchaserwhohasclosedonaClubInteresttoutilizeany oftheProjectamenities,including,butnotlimitedto,Projectfeatures,benefits,and reservationrights,sincetherighttouseoraccesssuchamenitiesshallhavevestedat closing.However,youshouldbeawarethatwhoeversucceedstotherightsofthe DeveloperasaresultofaforeclosuresalewillenjoythesamerightsastheDeveloper, includingtheDeveloper’srighttomakealterationstotheProject,asdescribedintheClub DocumentsandsummarizedinParagraph20below,entitled“Developer’sControlPeriod,” andthelimitedrighttochangetheReservationProceduresdescribedinParagraph4above. ThesechangesmayaffecttheProject,includingthemanagementandbrandingofthe Project.Aforeclosure,however,doesnotexpandorchangetheDeveloper’srights.Those rightsaresimplytransferredtowhoeverpurchasesorreceivesanassignmentofthe Developer’sunsoldinterestatforeclosureorasaresultofthedefault.

TheMortgageisaliencoveringland,whichincludesalloftheApartmentsinthe CondominiumownedbytheDeveloper,includingalloftheClubUnitsandClubInterests, andthesalescontractsrelatingtotheClubInterests,including,butnotlimitedto,your SalesContractandthefundsyouhavedepositedintoescrowunderthetermsofyourSales Contract.IftheMortgageisforeclosed,thelenderorwhoeverpurchasestheDeveloper’s interestataforeclosuresalemay,ifithonorsalloftheDeveloper'sobligations,stepinto theshoesoftheDeveloperwithregardstoyourSalesContract,inwhichcase,thelender orpurchaserofDeveloper'sinterestwillhonorthetermsofyourSalesContractandany otherobligationoftheDeveloperwithregardstotheProject.Themoneyyouhaveplaced intoescrowwillbeusedtowardsyourpurchaseasdescribedinyourSalesContract.Ifthe DeveloperfailstopaywhatitowesundertheMortgagewhenthoseamountsaredue,the lenderorwhoeverpurchasestheDeveloper’sinterestattheforeclosuresalemayalso choose,however,toterminateyourSalesContract,onlyifclosingunderyourSales Contracthasnotyetoccurred,atwhichpointallyourfundsheldbyescrowwillbereturned toyou.Aforeclosuremayalsoresultintheissuanceofanamendedorsupplemental disclosurestatement,inwhichcase,ifyouarestillundercontract,youwillhavearenewed seven(7)dayrighttocancelyourSalesContractasdescribedinParagraph8above.

(4)Anapartmentleaseorcondominiumconveyancedocument conveyingordemisingasinglecondominiumunitoraleaseofasingle cooperativeapartment;and

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(2)Taxesandassessmentsleviedbypublicauthorityandthatare notyetdueandpayable;

(3)Alienforcommonexpensesunder[HRS]chapter514Boralien onanindividualtimeshareunitforsimilarexpensesinfavorofa homeownersorcommunityassociation;

TheMortgageshallbereleasedastoapurchasedClubInterestpriortoclosingbywayof arecordedpartialreleaseandre-assignmentofcontracts.Thereleaseandre-assignment willcauseyourClubInterestandyourrightstousethe“CommonElements”(assuchterm isdefinedintheCondominiumDeclaration)oftheCondominiumandamenitiesassociated withyourownershipofaClubInteresttobefreeandclearoftheMortgage.

A. EstimateofDues.

ThePurchasershallbeobligatedtopaythefullpurchasepriceandcontractualclosingcosts oftheClubInterest.AtthetimeofclosingthePurchaserwillbeobligatedtopaythe proratedshareoftheannualassessmentsfortheClubInterest,aone-timeworkingcapital paymenttotheAssociationcalculatedasthree(3)monthsofannualassessmentscharged totheClubInterest,andallclosingcosts,including,withoutlimitation,thecostof preparationoftheClubInterestdeedandanyotherconveyancedocuments,allofEscrow Agent’s(asdefinedinParagraph14below)fees,Purchaser’snotaryfees,recordingfees, theStateofHawaiiconveyancetaxonthetransferoftheClubInterest,thecostofa preliminarytitlereportand/ortitleinsurancepolicy(ifPurchaserdoesnotinform DeveloperorEscrowAgentthatPurchaserdoesnotwantorneedatitlereportoratitle policy)forPurchaserandPurchaser’slender(includinganyadditionalcostsrelatingtothe issuanceofanextendedcoveragetitlepolicy),thecostofobtainingPurchaser’sconsents, ifany,anymortgagefees,andanyStateofHawaiiGeneralExciseTaxthatmaybeincurred inconnectionwiththistransaction.Escrowandtitlefeeshavebeennegotiatedbythe Developer,andascheduleofsuchfeesisattachedheretoasExhibit“D.”

SeeattachedExhibit“B.”DuesareallocatedbasedontheClubInterestwithineach intervalClubprogram(KaiholoProgram,MaliulaProgram,ortheirreplacements).Dues arecalculatedbasedontheoverallAssociationbudget,whichbudgetincludes,without limitation,eachClubInterest’sshareofrealpropertytaxes.TheBoardmay,inits discretion,adjustthebudgetduringanyyear.TheAssociationisalsoresponsiblefora portionoftheCondominiumAssociationbudget,andsuchamountsareincludedinthe duescalculationattachedheretoasExhibit“B”andshallbeincludedinfutureAssociation budgets.Forbudgetarypurposes,theCommercialUnitsintheCondominiumarenot countedanddonotcurrentlypayanyCondominiumduesorassessments.The CondominiumAssociationBoardhasthediscretiontochargesomeorallofthe CommercialUnitsduesorassessmentsinthefuture.

Theotherencumbrancesarecustomaryeasementsandencumbrancesthatonewould expectofaProjectofthisnaturelocatedwithinaresortdevelopment.

10. PENDINGORANTICIPATEDSUITS

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DeveloperhasnoknowledgeofanypendingoranticipatedsuitsthataffecttheDeveloper orthisproject.

11. FINANCIALOBLIGATIONOFPURCHASER

12. ESTIMATEOFDUES,MAINTENANCEFEES,REALPROPERTYTAXES,ETC.

B. DescriptionofHawaiiStateandCounty-SpecificTransient AccommodationTaxes.

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A. WhenaPurchaserentersintoaSalesContractandDepositReceiptforthe saleofaClubInterestintheProject(“SalesContract”),EscrowAgentshallrequirethe paymentsofdepositsduethereundertobemadetoEscrowAgent,anddeliveryofan executedcopyoftheSalesContracttoEscrowAgent.Developershallalsopromptlypay overtoEscrowAgentallmonies(includingchecks)receivedbyDeveloperfromoron behalfofthePurchaserinconnectionwiththeSalesContract.Fundsreceivedbythe EscrowAgentshallnotbedisbursedpriorto(1)closing,inaccordancewiththeSales Contract,includingareceipt,inrecordableform,ofthepartialreleaseandre-assignment ofcontractsrelatingtoandpartiallyreleasingtheMortgageinthemannerandasreferred

WithrespecttostaysintheClubUnits,Ownersmustpaythethen-applicabletransient accommodationstaxleviedpursuanttothelawsoftheStateofHawaii.TheStatetransient accommodationstaxrateis10.25%effectiveasofJanuary1,2018.Thetaxiscalculated bymultiplyingsuchtransientaccommodationstaxratebythefairmarketrentalvalueof theClubUnitbeingoccupiedmultipliedbythenumberofdaysthattheOwneroccupies theClubUnit.ThefairmarketrentalvalueoftheClubUnitbeingoccupiedisanamount equaltoone-halfofthegrossdailymaintenancefeesthatarepaidbytheOwnerand attributabletotheClubUnit.Further,theCountyofKauaihasaCounty-specifictransient accommodationstax,whichOwnersmustalsopay.ThecurrentCountyofKauaitransient accommodationstaxrateis3.0%,effectiveasofOctober1,2021.Thetaxiscalculatedby multiplyingsuchtransientaccommodationstaxratebythefairmarketrentalvalueofthe ClubUnitbeingoccupiedmultipliedbythenumberofdaysthattheOwneroccupiesthe ClubUnit.ThefairmarketrentalvalueoftheClubUnitbeingoccupiedisanamountequal toone-halfofthegrossdailymaintenancefeesthatarepaidbytheOwnerandattributable totheClubUnit.BecausetheperiodoftimethateachOwneroccupiesaClubUnitmay vary,OwnersshouldaskfortheestimatedStatetransientoccupancytaxandtheestimated CountyofKauaitransientoccupancytaxfromthePlanManageratthetimetheyrequesta reservation.

13. ESCROWACCOUNT

TheEscrowAgreementcontains,amongotherthings,thefollowingtermsandconditions (whichmaybemodifiedorotherwiselimitedbyprovisionsthatarenotsummarized below):

AnEscrowAgreementhasbeenenteredintobetweenDeveloperandTitleGuaranty EscrowServices,Inc.(“EscrowAgent”)datedJanuary11,2017,asamended(the“Escrow Agreement”).Allpurchasersandprospectivepurchasersshouldcarefullyread,infull,the EscrowAgreementbecausethesummarysetforthbelowisNOTacompletedescription ofitscontents.

EscrowhasbeenestablishedwithTitleGuarantyEscrowServices,Inc.whoseaddressis 235QueenStreet,Honolulu,Hawaii96813.

14. ESCROWAGREEMENTANDCLOSING

1. Theseven-daycancellationperiodunderHRSSection514E-8 expiresastothepurchaserwhosefundsarebeingdisbursedwithnocancellationnotice havingbeenreceivedbyEscrowAgentwithinthefive-dayperiodfollowingexpirationof theseven-daycancellationperiod;and

D. UnlessotherwiseprovidedintheEscrowAgreement,Purchasershallbe entitledtoareturnofhisorherfunds,withoutinterestandlessanycancellationfee,and EscrowAgentshallpaysuchfundstosuchPurchaserif:(i)DeveloperorPurchaser deliverstoEscrowAgentavalidnoticeofcancellationoftheSalesContractpursuantto HRSSection514E-8,whichprovidesthatwithinsevencalendardaysaftertheexecution oftheSalesContract,orwithinsevencalendardaysafterthePurchaser’sreceiptofthis disclosurestatement,whicheveroccurslater,eitherpartymaycanceltheSalesContract withoutpenaltybymailingordeliveringanoticeofcancellationtotheotherpartyatan addressspecifiedonthecontract.Thenoticeofcancellationshallbeeffectiveuponmailing ordeliverytotheotherpartyattheaddressspecifiedontheSalesContract;or (ii)DeveloperorPurchaserotherwiseproperlyterminatestheSalesContractpursuantto itsterms.IfPurchaserdefaultsintheperformanceofPurchaser’sobligationsunderthe SalesContract,allthePurchaser’sfundsshallbedeliveredinaccordancewiththeSales Contract.

2. EscrowAgentreceivesaswornstatementfromDeveloperdatedfive daysormoreafterexpirationoftheseven-daycancellationperiodthat:(i)nocancellation noticepostmarkedonadatewithintheseven-daycancellationperiodwasreceivedfrom Purchaserwhosefundsarebeingdisbursed;and(ii)nocancellationnoticewasotherwise receivedduringtheseven-daycancellationperiod.

toinParagraph9above,(2)terminationoftheSalesContract,exceptuponagreement betweenDeveloperandthegivenPurchaser,or(3)cancellation,withintheseven(7)day perioddescribedinParagraph8above.

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B. EscrowAgentshallreceive,depositandholdinoneormoreescrow accountsanddisburseassetforthintheEscrowAgreementallpaymentsreceivedbyit undertheSalesContract.AllfundsandinstrumentsreceivedfromPurchasersor prospectivePurchasersshallbeheldbyEscrowAgentinaccordancewiththeprovisions containedinChapter514E-8ofthe HRS andSection16-106-20oftheHawaii AdministrativeRules.EscrowAgentshalldepositallfundssoreceivedinafederally insuredaccountatafinancialinstitutionauthorizedtodobusinessintheStateofHawaii.

E. IfaPurchaserbreachestheSalesContractbyfailingtomakearequired paymenttoEscrowAgentorfailstodoanyactwhichwouldconstituteaneventofdefault undertheSalesContract,DevelopershallpromptlygivePurchaserandEscrowAgent writtennoticeofdefault.IfPurchaserhasfailedtocurethedefault,Developershallso adviseEscrowAgentofsuchdefaultinwriting.EscrowAgentwillthereuponnotify PurchaserthatDeveloperhasdeclaredPurchaserindefault.IfDeveloperelectsto

C. ExceptasmayotherwisebesetforthintheEscrowAgreement,no disbursementofaPurchaser’sfundsheldbyEscrowAgentundertheEscrowAgreement shallbemadeunlessanduntilthefollowingconditions(amongothers)havebeenfulfilled:

F. UponthecancellationofanySalesContractasspecifiedabove,exceptfor cancellationwithinthestatutoryseven(7)daysasdescribedabove,EscrowAgentshallbe entitledtoacancellationfeeofTWENTY-FIVEANDNO/100DOLLARS($25.00)anda documentpreparationfee.

TheDeveloper,PlanManager,exchangeagent,andsalesentitiesareaffiliatedentitiesby virtueofsharingeitheracommoncorporateparent,commonexecutivelevelcontrol, commonmajorityownershiporacombinationoftheforegoing.Allsaleswillbeoffered byTimbersHawaiiRealEstateLLCanditsagents.

15.

terminatetheSalesContract,thenEscrowAgentshalltreatallfundsofthePurchaseras fundsofDeveloperandnotasfundsofthePurchaser.Then,uponrequestbyDeveloper, EscrowAgentshallpaysuchfundstoDeveloper,lessanyescrowcancellationfee,and suchfundsshallbeconsideredliquidateddamagesforDeveloper.

Theabovesummaryisnotintendedtobeathoroughandexhaustiveexplanationofall termsandprovisionscontainedintheEscrowAgreement.WhileaPurchasercanusethis summaryasageneralsummaryoftheEscrowAgreement,Purchasermustrefertothe EscrowAgreementtodetermineactualrightsandobligations.

G. Closingshalloccurnotearlierthantheissuanceofacertificateof occupancyorothergovernmentalpermissionwhichshallauthorizetheuseoftheClub Units,completionoftheCommonElements(asdefinedintheCondominiumDeclaration) andavailabilityofservicesassociatedwiththoseCommonElementstowhichanOwneris entitledundertheClubDeclaration.Untilclosing,Buyer’sdeposit(s)shallbeheldby EscrowandshallberefundabletotheextentallowedundertheSalesContract.

ESTABLISHMENTOFNONPROFITCORPORATION,CLUBMEMBERSHIPOR ASSOCIATION

TheDeveloperformedtheTKResortVacationOwnersAssociationintheStateofHawaii onMay16,2016.TheAssociationisanon-profitentity,andallOwnersaremembersof theAssociationbyvirtueoftheirownershipofaClubInterest.TheAssociationmanages allClubUnitswithintheProjectandshallberesponsibleforassessingandcollectingdues fromOwnersinfurtheranceofthesame.TheAssociationshallalsoberesponsiblefor hiringaplanmanagertomanagetheAssociationanditspropertyonbehalfoftheOwners.

16. DEVELOPERISALSOACQUISITIONAGENT,SALESAGENT,PLANMANAGER OREXCHANGEAGENT

11 961170.18

AstheDeveloperandPlanManagerareaffiliatedentities,thereisthepotentialforconflicts ofinterest.Forexample,thereisthepotentialthatthePlanManagercouldbeviewedas favoringtheDeveloperortheDeveloper’sClubUnitsintermsofthird-partyrentals,or ClubUnitmaintenance.Furthermore,whiletheDevelopercontrolstheBoard,itmaybe construedthattheBoard’sactionscouldfavortheDeveloper.Theseconflictsareunlikely toariseforthefollowingreasons:(1)theBoardisgovernedbyboththeClubDeclaration andstatutoryprovisionsthatimposealevelofresponsibilityuponittoactinthebest interestofallOwners,irrespectiveofaffiliation;and(2)theAssociationretainsthePlan

AnaffiliateofManagingAgentandPlanManager,TimbersExchange,LLC,isthe exchangeagentfortheProject(the“ExchangeAgent”).TheExchangeAgenthasentered intoaresortaffiliationagreementwiththeAssociation(the“TRPAffiliationAgreement”) throughwhichOwnersshallhaveanopportunitytoparticipateinaprogramknownasthe “TimbersReciprocityProgram”(also“TRP”),whichTRPAffiliationAgreementand TimbersReciprocityProgramaremoreparticularlydescribedinParagraph23below.

AstheDeveloperandExchangeAgentareaffiliatedentities,thereisthepotentialfor conflictsofinterest. TheDevelopercouldbeviewedasfavoringOwnerparticipationinthe TRPbecausetheExchangeAgentwillbenefiteconomicallyfromsuchparticipation. However,thedecisiontoenrollintheTRPiscompletelyvoluntaryandatthediscretionof eachOwner.

PursuanttoSection514E-11.3,HawaiiRevisedStatutes,everysaleortransfermadein violationofChapter514E,HawaiiRevisedStatutes,isvoidableattheelectionofthe purchaser.

DuringtheTimeshareDeveloper’sControlPeriod,theDevelopershallhavetheexclusive rightstoappointmembersoftheBoardandunilaterallyamendtheClubDeclarationand

SERVICEOFPROCESS

18. SALESINVIOLATIONOFHAWAIITIMESHARELAW

17.

AnydecisionoractionofthePlanManagerorDeveloperthatimpactsOwnerswillimpact theDeveloperonapro-ratabasistotheextentthattheDeveloperretainsownershipofany ClubUnit.Ifapotentialconflictofinterestarises,thePlanManagerwillfirstandforemost performthosedutiesdelegatedtoitbylaw,theClubDeclaration,andanyapplicable managementcontractandshallactinthebestinterestoftheAssociation,asrequiredby thesame.

20. DEVELOPER’SCONTROLPERIOD

Ithasbeenconfirmedbythepropercountyauthoritythatthepropertyislocatedinazone asrequiredbySection514E-5,HawaiiRevisedStatutes,andthattimesharingispermitted.

TheregisteredagentofboththeDeveloperandtheAssociationisCogencyGlobalInc., 1188BishopStreet,Suite2212,Honolulu,Hawaii96813.

19.

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ManagerpursuanttoamanagementcontractthatimposesadutyforthePlanManagerto actinthebestinterestoftheAssociationandallOwnersasacollective.

The“TimeshareDeveloper’sControlPeriod”commencedontheEffectiveDateofthe ClubDeclarationandshallenduponthefirsttooccurofthefollowing:(a)whenDeveloper nolongerownsanyClubInterestandhasnofurtherrightstoannexanapartmentinthe CondominiumtotheProjectasaClubUnit;(b)December31,2036;or(c)whenDeveloper recordsaninstrumentterminatingtheTimeshareDeveloper’sControlPeriod.

COMPLIANCEWITHCOUNTYREQUIREMENTS

UNINSUREDCASUALTY/INSURANCE

AsanOwner,duringtheTimeshareDeveloper’sControlPeriod,youmayhavelittletono rightstoappointBoardmembersandconsenttotheDeveloperbeingabletounilaterally alteroramendtheClubDocumentsasdescribedabove.Youwillretaintheright,however, tovoteyourShareonallmattersbeforethemembershipoftheAssociation,andyourvote shallcountinproportiontoyouroverallShareintheAssociation.

PursuanttotheCondominiumDeclarationandCondominiumAssociationBylaws,until theearlierofthefollowing(i)sixty(60)daysaftertheconveyanceofseventy-fivepercent (75%)ofthe“CommonInterest”(assuchtermisdefinedintheCondominiumDeclaration) appurtenanttoApartmentsthatmaybecreatedtoownersotherthantheDeveloperoran affiliateoftheDeveloper;(ii)two(2)yearsaftertheDeveloperhasceasedtooffer Apartmentsforsaleintheordinarycourseofbusiness;(iii)two(2)yearsafteranyrightto addApartmentstotheCondominiumwaslastexercised;or(iv)thedaytheDeveloper, aftergivingwrittennoticetoownersoftheApartments,recordsawritteninstrument voluntarilysurrenderingallrightstocontroltheactivitiesoftheCondominiumAssociation (the“CondominiumDeveloper’sControlPeriod”),theDeveloper,asthedeveloperofthe Condominium,hastherightstoappointandremoveofficersandmembersoftheboardof directorsoftheCondominiumAssociation.TheDeveloperhasreserved,duringthe CondominiumDeveloper’sControlPeriod,numerousotherrightswithrespecttothe CondominiumandtheCondominiumAssociation,including,withoutlimitation,therights tograntandassigneasementsinfurtheranceofthedevelopmentoftheCondominiumor TheHokualaResort,subdivideandconsolidateApartmentsand/ortheunderlyingland, addorremoveApartmentsorland,amendtheCondominiumDeclaration,Condominium AssociationBylawsandCondominiumMap,recharacterizeCommonElementsand “LimitedCommonElements”(assuchtermisdefinedintheCondominiumDeclaration), andotherwisemodifytheCondominium.Notwithstandingtheforegoing,changesthat directlyimpactanApartmentortheLimitedCommonElementsappurtenanttosaid ApartmentmayrequiretheconsentoftheownerofsuchApartment.

B. AnysuchOwner’sUsePeriods;providedthatanyamendmenttothe ReservationProceduresmustbeapplieduniformlytoallUsePeriodsinthesameClub program(KaiholoProgram,MaliulaProgram,ortheirreplacements)andmaynotreduce thenumberofUsePeriodsaffordedanOwner;or

21.

13 961170.18 theotherClubDocuments,forthereasonssetforthinParagraph13.5.1oftheClub Declaration;providedthattheamendmentdoesnotmateriallydiminishoradverselyaffect anOwner’srightsto:

A. AnysuchOwner’s1/6th or1/12th undividedinterestastenant-in-commonin aClubUnit;

C. AnysuchOwner’sShareorvotingrights,exceptintheeventofannexation ordeannexationofClubUnitstotheProject.

TheAssociationshall,ataminimum,maintainpropertyinsurancepursuanttothecoverage requirementsintheCondominiumDocumentsapplicabletoClubUnits,excludingthe

AssetforthintheClubDeclarationandtheCondominiumDeclaration,incaseatanytime ortimesanyimprovementsoftheCommonElementsshallbedamagedordestroyedby anycasualtynotinsuredagainst,suchimprovementsshallberebuilt,repairedorrestored unlessownersofApartmentsintheCondominium(includingOwnersofClubInterests)to whichareappurtenantatleast seventy-fivepercent(75%) oftheCommonInterest(as suchtermisdefinedintheCondominiumDeclaration),withtheconsentoftheir mortgagees,ifsuchmortgageesrequiresuchconsent,affirmativelyvoteagainstsuch rebuilding,repairingorrestoration.AnysuchapprovedrestorationoftheCommon ElementsshallbecompleteddiligentlybytheCondominiumAssociation,andthecost thereofshallbea“CommonExpense”(assuchtermisdefinedintheCondominium Declaration).Unlesssuchrestorationisundertakenwithinareasonabletimeaftersuch casualty,theCondominiumAssociationshallremoveallremainsofimprovementsso damagedordestroyedandrestorethesitethereoftogoodandorderlyconditionandeven grade.ThecostofanysuchremovalandrestorationshallbeaCommonExpense.

InadditiontotheInsurancemaintainedbytheAssociation,Ownersshallobtain,tothe extentsuchinsuranceiscommerciallyavailableandreasonablyobtainable,thefollowing: (1)liabilityinsuranceforbodilyinjuryandpropertydamageinanamountofnotlessthan THREEHUNDREDTHOUSANDANDNO/100DOLLARS($300,000.00)per occurrence;and(2)attheirownoptionanysuchotherinsuranceastheOwnermayelect toprocureforcoverageincludingbutnotlimitedto,personalpropertyofOwnerstoredat theProject,additionallivingexpenses,andlossofuseoftheClubUnit.Developerdoes notrepresentorwarrantthatsuchinsurancerequiredofOwneriscommerciallyor reasonablyavailable.

areasinsuredundertheCondominiumDocuments,butincluding,withoutlimitation, propertyinsuranceforallClubUnitsandforallfixtures,furnishings,installationsor additions,floorcoverings,wallcoverings,andceilingcoveringscomprisingthatpartofthe buildingwithintheunfinishedinteriorsurfacesoftheperimeterwalls,floors,andceilings oftheindividualClubUnitsinitiallyinstalled,orreplacementsthereofoflikekindor quality,inaccordancewiththeoriginalplansandspecifications,orasexistedatthetime thefirstClubInterestthereinwasinitiallyconveyediftheoriginalplansandspecifications arenotavailable,butexcludingallpersonalpropertyofanOwnerandhisorherguests.

ThismeansthatiftheCommonElementsandthecontentsoftheClubUnits,asidefrom personalpropertyofagivenOwner,aregenerallyinsuredbytheCondominium AssociationandtheCommonElementsaredamagedordestroyed,theCondominium Associationshallfirstlooktoinsuranceproceedstorebuild.Ifinsuranceproceedsarenot availableorinsufficient,theAssociationshallrebuildsuchCommonElementsunless holdersofseventy-fivepercent(75%)oftheCommonInterestvotenottorebuild.

HOKUALACLUB

AssetforthintheClubDeclarationandtheCondominiumDeclaration,TheHokualaClub isanon-proprietary,non-votingresortmembershipclublocatedwithintheHokualaResort community.ThefacilitiesofTheHokualaClub,whichincludegolf,tennis,beachand swimmingfacilities,amongothers,arecurrentlyownedbyTowerKauaiLagoons,LLC, aDelawarelimitedliabilitycompany(the“HokualaClubOwner”).TheHokualaClubis

14 961170.18

22.

EachOwner,subjecttoapprovalformembership,isrequiredtoacquireatleasta“resident membership”inTheHokualaClubandmaintainmembershipinTheHokualaClubforso longassaidOwnerownsaClubInterest.

15 961170.18

TheannualassessmentsleviedformembershipinTheHokualaClubmay,atthediscretion oftheBoard,beincludedintheannualduesandassessmentsoftheAssociation.Ifitis not,anOwnershallberequiredtoseparatelypayforsuchannualassessmentasandwhen duetoTheHokualaClubpursuanttotherulesofTheHokualaClub,asamendedfromtime totime.TotheextentTheHokualaClubassessmentsareincludedintheAssociation’s annualClubExpenses,suchamountsshallbetreatedasachargeduetotheAssociation andsubjecttoallrightsofcollection,lienandassessmentaffordedtotheAssociationby theClubDeclarationorapplicablelaw.ThecurrentHokualaClubannualassessmentis ONEHUNDREDTWOANDNO/100DOLLARS($102.00)forOwnersintheMaliula ProgramandTWOHUNDREDTWENTY-FOURANDNO/100DOLLARS($224.00) forOwnersintheKaiholoProgram.TheHokualaClubassessmentamountsaresubjectto changeinaccordancewithAssociation’sbudget.

MembershipinTheHokualaClubcurrentlyenablesOwnerstoaccessthefacilitiesand servicesdescribedinTheHokualaClubmembershipplan.TheamenitiesofferedbyThe HokualaClubmaychangefromtimetotimeatthesolediscretionofTheHokualaClub OwnerandtheOperator,andtheannualassessmentsforTheHokualaClubshallbesetat thesolediscretionofTheHokualaClubOwnerand/orOperator.

23. RESORTAFFILIATIONAGREEMENT

TimbersExchange,LLC,asExchangeAgent,hasenteredintotheTRPAffiliation AgreementthroughwhichOwnersshallhaveanopportunitytoparticipateintheTimbers ReciprocityProgram.IfanOwnerdesirestoparticipateintheTimbersReciprocity Program,Ownermay,followingclosing,registeron-lineatwww.collectionmembers.com orcall(877)877-4405forassistanceinregistrationorformoreinformation.Theinitiation feewillbewaivedforanOwneriftheOwnerelectstoparticipateintheTimbers ReciprocityProgram,butfacilitationfees,whicharecurrentlysetatTWOHUNDRED FIFTYANDNO/100DOLLARS($250.00)peruse,willthereafterbedueandpayableat thetimeanOwnerparticipatesintheprogram,asfurtherdescribedintheTRPguidelines. TRPmembersarealsoresponsibleforincidentals,personalservicechargesand housekeepingfeesatanypropertytheyvisitthroughtheTimbersReciprocityProgram.In theeventOwnerresellsitsClubInterestinthefuture,thetransfereewillberequiredtopay thethen-applicableTRPtransferfee(currentlysetatTHREETHOUSANDFIVE HUNDREDANDNO/100DOLLARS($3,500.00))ifthetransfereedesirestoparticipate intheTimbersReciprocityProgram.IfthePurchaserresellsitsClubInterestbyretaining aresalebrokerthatisnotapprovedbythePlanManager,however,theinterestedtransferee willberequiredtopaythethen-applicableTRPinitiationfee(currentlysetat

currentlyoperatedbyTimbersKauaiManagementLLC,aHawaiilimitedliability company(the“Operator”).VarioustypesofmembershipsmaybeofferedinTheHokuala Club.MembershipsinTheHokualaClubareofferedpursuanttoandaregovernedbyrules andregulations,themembershipplanandindividualmembershipagreements,allasmay beamendedfromtimetotime.

(Theremainderofthispageisintentionallyleftblank)

16 961170.18

THIRTY-FIVETHOUSANDANDNO/100DOLLARS($35,000.00)).Feesmaybe amendedormodifiedinthefutureassetforthintheTRPguidelines.

By:TOWERKAUAILAGOONS,LLC, aDelawarelimitedliabilitycompany ItsMember

TOWERKAUAILAGOONS9B,LLC, aDelawarelimitedliabilitycompany

By: Name: Its: By: Name: Its: TaejoKim AuthorizedSignatory AuthorizedSignatory

DatedasoftheacceptancedatestatedonthecoverpageofthisDisclosureStatement.

By:TOWERKAUAILAGOONSMEZZ,LLC, aDelawarelimitedliabilitycompany ItsSoleMemberandManager

3. ThetermsandprovisionscontainedinDEEDdatedJune29,1977,recordedinLiber12300atPage 260.

ENCUMBRANCESAGAINSTTITLE

9. -ASTOLOT700ANDLOT701ONLY:-

(A)GRANTOFEASEMENTinfavorofTHELIHUEPLANTATIONCOMPANY, LIMITED,aHawaiicorporation,datedJanuary15,1988,recordedinLiber21584at Page379;grantinganonexclusiverightandeasementfordrainagepurposes,infavorof Lot4andLot9,asshownonFilePlanNo.1905.

EXHIBITA

Theforegoingincludes,butisnotlimitedto,thefollowing:

2. Mineralandwaterrightsofanynature.

"AndtheGranteedoesherebycovenantandagreetoassumetheobligationsofLPCunderthe DecisionandOrderoftheLandUseCommissionoftheStateofHawaii,issuedonAugust22,1983 (DocketNo.82530),reservinguntotheGrantee,however,therighttoseekrelieftherefromor modificationsthereoffromsaidLandUseCommissionoranyotherappropriategovernmental authority."

8. GRANTOFEASEMENTinfavorofTHELIHUEPLANTATIONCOMPANY,LIMITED,a Hawaiicorporation,datedasofJanuary15,1988,recordedinLiber21584atPage361;grantinga nonexclusiverightandeasementfordrainagepurposesoverandacrossLot2,asshownonFile Plan1905.

EXHIBITA

RIGHT-OF-ENTRYinfavorofCITIZENSUTILITIESCOMPANY,whoseinterestisnowheld byKAUAIISLANDUTILITYCO-OP,andGTEHAWAIIANTELEPHONECOMPANY INCORPORATED(nowknownasHAWAIIANTELCOM,INC.),datedJuly24,1986,recorded inLiber19887atPage53.

Page1of12

1. Anyandallrealpropertytaxesthatmaybedueandowing.

ThetermsandprovisionscontainedinDEEDdatedMarch25,1987,recordedinLiber20496at Page304,ascorrectedinCORRECTIONDEED(TheKauaiLagoons-Lots2,5,6,7,8,10and 11)datedasofJanuary15,1988,recordedinLiber21584atPage334.

RIGHTOFENTRYdatedSeptember24,1987,recordedinLiber21309atPage338,infavorof CITIZENSUTILITIESCOMPANY,whoseinterestisnowheldbyKAUAIISLANDUTILITY CO-OP,andGTEHAWAIIANTELEPHONECOMPANYINCORPORATED(nowknownas HAWAIIANTELCOM,INC.).

4. CERTIFICATEOFCONDITIONSdatedMay16,1984,recordedinLiber17931atPage249,by AMFACPROPERTYDEVELOPMENTCORPORATION,adivisionofAMFAC,INC.,aHawaii corporation.

15.

14. UnrecordedAGREEMENTdatedJune1,1992,ofwhichaMEMORANDUMisfiledasLand CourtDocumentNo.1937365,recordedasDocumentNo.92-123466,byandbetweenKAUAI LAGOONSRESORTCOMPANY,LTD.,aHawaiicorporation,andANDREWLELAND NICKLES.

ASSIGNMENTANDASSUMPTIONOFMARRIOTTKAUAIHOTELUSEAGREEMENT datedasofJune15,2001,byandbetweenMARRIOTTKAUAI,INC,aDelawarecorporation

ROADWAYANDUTILITYEASEMENTAGREEMENTdatedasofJanuary30,1991,filedas LandCourtDocumentNo.1797886,recordedasDocumentNo.91-012273,byandamong HEMMETER-VMSKAUAICOMPANYI,aHawaiilimitedpartnership,HEMMETER-VMS KAUAICOMPANYII,aHawaiilimitedpartnership,KAUAILAGOONSRESORTCOMPANY, LTD.,aHawaiicorporation,andKAUAILAGOONSHOTELCOMPANY,LTD.,aHawaii corporation,asamendedbyinstrumentsdatedAugust3,1994,filedasLandCourtDocumentNo. 2178041,recordedasDocument94-129352,anddatedasofOctober13,2011,filedasLandCourt DocumentNo.T-9115235,recordedasDocumentNo.A-54630719(JoinderandConsentby KAUAILAGOONSLLC,aHawaiilimitedliabilitycompany,andASSOCIATIONOF APARTMENTOWNERSOFKALANIPU'UCONDOMINIUM,aHawaiinon-profitcorporation, datedApril30,2015,recordedasDocumentNos.A-55980530AthruA-55980530B,filedasLand CourtDocumentNo.T-9250133).

(B)GRANTOFEASEMENTinfavorofHEMMETER-VMSKAUAICOMPANYI,a Hawaiilimitedpartnership,datedJanuary15,1988,recordedinLiber21584atPage403; grantinganonexclusiverightandeasementfordrainagepurposesoverandacrossLots4 and9,asshownonFilePlanNo.1905.

13. ThetermsandprovisionscontainedinCERTIFICATEANDAUTHORIZATIONdated November6,1991,recordedasDocumentNo.92-081744,madebyandamongWM.HYDERICE, LIMITED,aHawaiicorporation,KAUAILAGOONSRESORTCOMPANY,LTD.,aHawaii corporation,KAUAILAGOONSBEACHHOTELCOMPANY,LTD.,aHawaiicorporation, HEMMETER-VMSKAUAICOMPANYI,aHawaiilimitedpartnership,HEMMETER-VMS KAUAICOMPANYII,aHawaiilimitedpartnership,andHEMMETER-VMSKAUAI COMPANYIII,aHawaiigeneralpartnership.

11. ThetermsandprovisionscontainedinDEEDdatedJanuary30,1991,recordedasDocumentNo. 91-012227.

ThetermsandprovisionscontainedinunrecordedMARRIOTTKAUAIHOTELUSE AGREEMENTdatedAugust3,1994,ofwhichaSHORTFORMHOTELUSEAGREEMENTis datedAugust3,1994,filedasLandCourtDocumentNo.2169456,andrecordedasDocumentNo. 94-129350,byandbetweenKAUAILAGOONSRESORTCOMPANY,LTD.,aHawaii corporation,andMARRIOTTKAUAI,INC.,aDelawarecorporation,andMARRIOTTKAUAI OWNERSHIPRESORTS,INC.,aDelawarecorporation,foratermcommencingonthe "Re-OpeningDate"andterminatingonDecember31,2015.

EXHIBITA Page2of12

10. FILEPLAN1905SUBDIVISIONAGREEMENTdatedJanuary15,1988,recordedinLiber22624 atPage432,byandamongtheCOUNTYOFKAUAI,HEMMETER-VMSKAUAICOMPANY IandTHELIHUEPLANTATIONCOMPANY,LIMITED.

12. Thetermsandprovisionscontainedinthefollowing:

ASSIGNMENTANDASSUMPTIONOFKAUAILAGOONSGOLFANDTENNISPLAY AGREEMENTdatedasofJune15,2001,filedasLandCourtDocumentNo.2716832,recorded asDocumentNo.2001-097935,byMARRIOTTKAUAI,INC.,aDelawarecorporation,as "Assignor",andHPTMIHAWAII,INC.,aDelawarecorporation,as"Assignee."

FIRSTAMENDMENTTOSHORTFORMGOLFANDTENNISPLAYAGREEMENTdated April18,2008,filedasLandCourtDocumentNo.3736831,recordedasDocumentNo. 2008-061422.

17.

GRANTOFAVIGATIONANDNOISEEASEMENTinfavoroftheSTATEOFHAWAII, DepartmentofTransportation,AirportsDivision,datedMarch21,2002,recordedasDocument No.2002-228662;granting(i)aneasementandrightofway,appurtenanttotheLihueAirport,for thepassageofallaircraftintheairspaceabovetheEasementPremises;and(ii)aneasementto discharge,emitorotherwisetransmitnoise,andalsofumes,etc.

MEMORANDUMOFLEASEAGREEMENTdatedeffectiveasofJune15,2001,byandbetween HPTMIHAWAII,INC.,aDelawarecorporation("Landlord"),andHPTTRSMI-135,INC.,a Delawarecorporation("Tenant"),filedasLandCourtDocumentNo.2716833,recordedas DocumentNo.2001-097936.

18.

19.

ThetermsandprovisionscontainedintheQUITCLAIMDEEDdatedasofJune30,2003,recorded asDocumentNo.2003-141861.

CORRECTIONQUITCLAIMDEEDdatedasofJuly15,2003,recordedasDocumentNo. 2003-158666.

EXHIBITA Page3of12 ("Assignor"),andHPTMIHAWAII,INC.,aDelawarecorporation("Assignee"),filedasLand CourtDocumentNo.2716830,recordedasDocumentNo.2001-097931.

ThetermsandprovisionscontainedinthatcertainLimitedWarrantyDeeddated---(acknowledged October13,2005),recordedasDocumentNo.2005-209699,asfollows:

MEMORANDUMOFLEASEAGREEMENTOFMARRIOTT'SKAUAIRESORTAND BEACHCLUB,OWNERANDDEVELOPERRIGHTSUNDERDECLARATIONOF CONDOMINIUMPROPERTYREGIME,ANDPARKINGSUBLEASEdatedasofJanuary1, 2008,filedasLandCourtDocumentNo.3736832,recordedasDocumentNo.2008-061423,by andbetweenHPTMIHAWAII,INC.,aDelawarecorporation,andESSEXHOUSE CONDOMINIUMCORPORATION,aDelawarecorporation.

16. ThetermsandprovisionscontainedinunrecordedKAUAILAGOONSRESORTGOLFAND TENNISPLAYAGREEMENTdatedAugust3,1994,byandbetweenKAUAILAGOONS RESORTCOMPANY,LTD.,aHawaiicorporation("ResortCompany"),andMARRIOTT KAUAI,INC.,aDelawarecorporation("HotelCompany"),ofwhichaSHORTFORMGOLF ANDTENNISPLAYAGREEMENTisdatedAugust3,1994,filedasLandCourtDocumentNo. 2169457,andrecordedasDocumentNo.94-129351,onandoverthepremisesdescribedherein, foratermcommencingonthedateonwhichHotelCompanyacquirestitletoHotelProperty,and terminatingonMarch30,2060.

SaidAgreementissubjecttoanymattersarisingfromoraffectingthesame.

(C)ThePropertyisadjacenttoornearotherpropertythatmaybedevelopedinthefuture.As aresult,personsandpropertyonoraboutthePropertymaybeexposedtonoise,dust, traffic,odors,vibrations,lights,andotherconstructionrelatednuisancesanddisturbances.

INSTRUMENT:DECLARATIONOFDEEDRESTRICTIONCONCERNING DENSITYINTHEOPENDISTRICTZONEOFKAUAI LAGOONSRESORT

INSTRUMENT:DECLARATIONOFCOVENANTS,CONDITIONSAND RESTRICTIONSFORKAUAILAGOONS

23. Thetermsandprovisionscontainedinthefollowing:

20. ThetermsandprovisionscontainedintheLIMITEDWARRANTYDEEDdated---(acknowledged July19,2007),filedasLandCourtDocumentNo.3641266,recordedasDocumentNo. 2007-144031.

22. ThetermsandprovisionscontainedintheLIMITEDWARRANTYDEEDWITHCOVENANTS datedFebruary22,2008,recordedasDocumentNo.2008-040611.

(D)AportionofthePropertyisneartheLihueWastewaterTreatmentPlant.Themaintenance, operationanduseofthatplantmayresultinnuisancesanddisturbancestopersonsor propertyonorabouttheProperty,includingwithoutlimitationnoise,odors,dust, mosquitoes,vibrations,lights,andothernuisancesandproblems."

(B)AportionofthePropertyisadjacenttotheKauaiLagoonsGolfCourses.Themaintenance, operationanduseofthegolfcourses,drivingrange,practicefacilitiesandotherfacilities thatcomprisetheKauaiLagoonsGolfCoursesmayresultinnuisances,disturbancesor hazardstopersonsorpropertyonorabouttheProperty,includingwithoutlimitation injuries,illnessandotherdamagescausedbytheuseofgolfcartsandmaintenance equipment,straygolfballs,spraying(includingherbicides,fungicides,insecticidesand otheragriculturalchemicals),particulates,andtheuseofnon-potablewatersystems,and fromnoise,odors,traffic,viewobstructionsandsurfacewaterrunoff.Themannerof operationoftheKauaiLagoonsGolfCoursesmaybechangedatanytimeatthediscretion oftheirowneroroperator.ThePropertyisalsopartoftheKauaiLagoonsResort.Resortrelatedactivitiessuchasgolftournaments,broadcasting,filming,concertsandluausmay resultinfurthernuisancesorhazardstopersonsorpropertyonorabouttheProperty.

FILED:LandCourtDocumentNo.3697357

21. Thetermsandprovisionscontainedinthefollowing:

"(A)ThePropertyislocatedintheproximityoftheLihueAirport.Asaresult,aircraftflights overornearthePropertymayresultinnoise,odors,dust,mosquitoes,vibrations,lights, andothernuisancesanddisturbances.

RECORDED:DocumentNo.2007-223761

EXHIBITA Page4of12

DATED:December18,2007

FOURTHAMENDMENTTODECLARATIONOFCOVENANTS,CONDITIONSAND RESTRICTIONSFORKAUAILAGOONS,datedFebruary18,2022,filedasLandCourt DocumentNo.T-11746448,recordedasDocumentNo.A-80941049.

ASSIGNMENTOFDECLARANTRIGHTSUNDERDECLARATIONOFCOVENANTS, CONDITIONSANDRESTRICTIONSFORKAUAILAGOONSdatedasofApril30,2015, recordedasDocumentNo.A-55980535,madeandgivenbyTOWERKAUAILAGOONSLAND, LLC,TOWERKAUAILAGOONSHOTEL,LLC,TOWERKAUAILAGOONS8,LLC, TOWERKAUAILAGOONS9B,LLC,TOWERKAUAILAGOONS9C,LLC,TOWERKAUAI LAGOONS9D,LLC,TOWERKAUAILAGOONSSUB1,LLC,TOWERKAUAILAGOONS SUB2,LLC,TOWERKAUAILAGOONSSUB3,LLC,TOWERKAUAILAGOONSSUB4, LLC,TOWERKAUAILAGOONSSUB7,LLC,2014KAUAILAGOONSGOLF,LLC, TOWERKAUAILAGOONSRETAIL,LLC,allofwhichareDelawarelimitedliability companies(collectively,"Assignors"),infavorofTOWERKAUAILAGOONSTS,aDelaware limitedliabilitycompany("Assignee").

-NOTE:-NojoinderbyTOWERKAUAILAGOONSTS,aDelawarelimitedliabilitycompany.

FILED:LandCourtDocumentNo.3723797

ASSIGNMENTOFDECLARANTRIGHTSUNDERDECLARATIONOFCOVENANTS, CONDITIONSANDRESTRICTIONSFORKAUAILAGOONSdatedasofDecember29,2014, filedasLandCourtDocumentNo.T-9130061,recordedasDocumentNo.A-54780206,madeand givenbyKAUAILAGOONS,LLC,aHawaiiliabilitycompany,andMORIGOLF(KAUAI), LLC,aDelawarelimitedliabilitycompany(collectively,"Assignor"),infavorofTOWERKAUAI LAGOONSLAND,LLC,TOWERKAUAILAGOONSHOTEL,LLC,TOWERKAUAI LAGOONS8,LLC,TOWERKAUAILAGOONS9B,LLC,TOWERKAUAILAGOONS9C, LLC,TOWERKAUAILAGOONS9D,LLC,TOWERKAUAILAGOONSSUB1,LLC, TOWERKAUAILAGOONSSUB2,LLC,TOWERKAUAILAGOONSSUB3,LLC,TOWER KAUAILAGOONSSUB4,LLC,TOWERKAUAILAGOONSSUB7,LLC,2014KAUAI LAGOONSGOLF,LLC,TOWERKAUAILAGOONSRETAIL,LLC,allofwhichareDelaware limitedliabilitycompanies(collectively,"Assignee").

SECONDAMENDMENTTODECLARATIONOFCOVENANTS,CONDITIONSAND RESTRICTIONSFORKAUAILAGOONSdatedDecember29,2014,filedasLandCourt DocumentNo.T-9130059,recordedasDocumentNo.A-54780169.

DATED:---(acknowledgedFebruary22,2008)

Theforegoingincludes,butisnotlimitedto,mattersrelatingtoassociationlienswhichmaybe superiortocertainmortgages.

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RECORDED:DocumentNo.2008-040613

FIRSTAMENDMENTTODECLARATIONOFCOVENANTS,CONDITIONSAND RESTRICTIONSFORKAUAILAGOONSdatedJune12,2009,filedasLandCourtDocument No.3870079,recordedasDocumentNo.2009-093734.

THIRDAMENDMENTTODECLARATIONOFCOVENANTS,CONDITIONSAND RESTRICTIONSFORKAUAILAGOONS,datedAugust8,2019,filedasLandCourtDocument No.T-10893265,recordedasDocumentNo.A72410588.

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26. RIGHT-OF-ENTRYdatedOctober6,2008,recordedasDocumentNo.2008-166719,infavorof KAUAIISLANDUTILITYCOOPERATIVE,acooperativeassociationformedpursuanttothe provisionofChapter421CoftheHawaiiRevisedStatutes,andHAWAIIANTELCOM,INC.,a Hawaiicorporation. LAGOONSLLCPROPERTY-LARGELOTSUBDIVISION)

-NOTE:-NojoinderbyTOWERKAUAILAGOONSTS,aDelawarelimitedliabilitycompany.

27. -ASTOLOT9-B,LOT700ANDLOT701ONLY:Thetermsandprovisionscontainedinthefollowing: INSTRUMENT:LIMITEDWARRANTYDEEDWITHCOVENANTS(KAUAI

24. -ASTOLOT9-BONLY:-

(A)DESIGNATIONOFEASEMENT"U-1"forutilitypurposes,asshownonsubdivisionmap preparedbyKevinK.Kea,LicensedProfessionalLandSurveyor,withAceLand SurveyingLLC,datedApril22,2008,revisedonJuly31,2008,andrecertifiedbythe ChairmanofthePlanningCommission,CountyofKauai,andthePlanningDepartmenton September23,2008.

(B)DESIGNATIONOFEASEMENT"U-2"forutilitypurposes,asshownonsubdivision mappreparedbyKevinK.Kea,LicensedProfessionalLandSurveyor,withAceLand SurveyingLLC,datedApril22,2008,revisedonJuly31,2008,andrecertifiedbythe ChairmanofthePlanningCommission,CountyofKauai,andthePlanningDepartment onSeptember23,2008.

AMENDMENTTO2008AVIGATIONEASEMENTANDSUPPLEMENTALGRANTOF AVIGATIONANDNOISEEASEMENTdatedApril9,2010,recordedasDocumentNo. 2010-050288.

DATED:September5,2008 RECORDED:DocumentNo.2008-166755 28. -ASTOLOT9-A,LOT700ANDLOT701ONLY:(A)Thetermsandprovisionscontainedinthefollowing:

25. GRANTOFAVIGATIONANDNOISEEASEMENTinfavoroftheSTATEOFHAWAII, DEPARTMENTOFTRANSPORTATION,AIRPORTSDIVISION,datedOctober14,2008,filed asLandCourtDocumentNo.3800089,recordedasDocumentNo.2008-162922;granting(i)an avigationeasementfortheflightofaircraftinalltheairspaceabove,orintheairspaceofthe PropertybeingmoreparticularlydescribedinExhibit"A"attachedthereto,toaninfiniteheight abovesaidProperty;(ii)aneasement,insofarasthePropertybeingmoreparticularlydescribedin Exhibit"A"attachedthereto,isconcernedandaffected,todischarge,emit,orotherwisetransmit noiseatlevelsnotexceedingthe60day-nightaveragesoundlevels(DNL)asdelineatedbythe 1991NoiseContourMap.

31.

(B)BUILDINGSETBACKLINEA-1referencedonsubdivisionmappreparedbyKevinK. Kea,LicensedProfessionalLandSurveyor,withAceLandSurveyingLLC,dated November26,2008,revisedDecember9,2008,andapprovedbythePlanningDepartment oftheCountyofKauaionDecember9,2008.

DATED:September5,2008

DATED:December19,2008

29. -ASTOLOT9-AONLY:-

(B)Thetermsandprovisionscontainedinthefollowing:

INSTRUMENT:LIMITEDWARRANTYDEEDWITHCOVENANTSAND GRANTSOFEASEMENT(KAUAICOUNTYSUBDIVISION 2008-24)

RIGHT-OF-ENTRYdatedDecember22,2008,recordedasDocumentNo.2009-002963,infavor ofTIMEWARNERENTERTAINMENTCOMPANY,L.P.,aDelawarelimitedpartnership, throughitsHawaiiDivision,doingbusinessasOceanicTimeWarnerCable.

(B)

RECORDED:DocumentNo.2008-166756

RECORDED:DocumentNo.2008-191226

30.

(A) DESIGNATIONOFEASEMENT"A-2-A"foraccesspurposes,asshownonsubdivision mappreparedbyKevinK.Kea,LicensedProfessionalLandSurveyor,withAceLand SurveyingLLC,datedSeptember8,2010,revisedDecember30,2010,andrecertifiedby theChairmanofthePlanningCommission,CountyofKauai,andthePlanningDepartment onJanuary11,2011.

DESIGNATIONOFEASEMENT"SA-1-A"(10feetwide)foraccessandutilitypurposes, asshownonsubdivisionmappreparedbyKevinK.Kea,LicensedProfessionalLand Surveyor,withAceLandSurveyingLLC,datedSeptember8,2010,revisedDecember30, 2010,andrecertifiedbytheChairmanofthePlanningCommission,CountyofKauai,and thePlanningDepartmentonJanuary11,2011.

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INSTRUMENT:LIMITEDWARRANTYDEEDWITHCOVENANTS(MORI GOLF(KAUAI),LLC-LARGELOTSUBDIVISION)

32.

-ASTOLOT9-AONLY:-

RIGHT-OF-ENTRYdatedNovember11,2008,recordedasDocumentNo.2008-188413,infavor ofKAUAIISLANDUTILITYCOOPERATIVE,acooperativeassociationformedpursuanttothe provisionofChapter421CoftheHawaiiRevisedStatutes,andHAWAIIANTELCOM,INC.,a Hawaiicorporation.

(A)DESIGNATIONOFDETENTIONBASINDB-7referencedonsubdivisionmapprepared byKevinK.Kea,LicensedProfessionalLandSurveyor,withAceLandSurveyingLLC, datedNovember26,2008,revisedDecember9,2008,andapprovedbythePlanning DepartmentoftheCountyofKauaionDecember9,2008.

(C) DESIGNATIONOFEASEMENT"AU-3A"foraccessandutilitypurposes,asshownon subdivisionmappreparedbyKevinK.Kea,LicensedProfessionalLandSurveyor,with AceLandSurveyingLLC,datedSeptember8,2010,revisedDecember30,2010,and recertifiedbytheChairmanofthePlanningCommission,CountyofKauai,andthe PlanningDepartmentonJanuary11,2011.

(A)DESIGNATIONOFEASEMENT"UT-10"forutilitypurposes,referencedonsubdivision mappreparedbyKevinK.Kea,LicensedProfessionalLandSurveyor,withAceLand SurveyingLLC,datedSeptember8,2010,revisedonDecember30,2010,andrecertified bytheChairmanofthePlanningCommission,CountyofKauai,andthePlanning DepartmentonJanuary11,2011.

-NOTE:-PortionsofsaidEasement"UT-10"werecancelledbymappreparedby KevinK.Kea,LandSurveyorwithAceLandSurveyingLLC,dated April24,2019.

(B)DESIGNATIONOFEASEMENT"UT-11"forutilitypurposes,referencedonsubdivision mappreparedbyKevinK.Kea,LicensedProfessionalLandSurveyor,withAceLand SurveyingLLC,datedSeptember8,2010,revisedonDecember30,2010,andrecertified bytheChairmanofthePlanningCommission,CountyofKauai,andthePlanning DepartmentonJanuary11,2011.

-NOTE:-PortionsofsaidEasement"UT-11"werecancelledbymappreparedby KevinK.Kea,LandSurveyorwithAceLandSurveyingLLC,dated April24,2019.

33. -ASTOLOT9-AANDLOT9-BONLY:-

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(E) DESIGNATIONOFEASEMENT"RD-3"forroadandutilitypurposes,asshownon subdivisionmappreparedbyKevinK.Kea,LicensedProfessionalLandSurveyor,with AceLandSurveyingLLC,datedSeptember8,2010,revisedDecember30,2010,and recertifiedbytheChairmanofthePlanningCommission,CountyofKauai,andthe PlanningDepartmentonJanuary11,2011.

(F) GRANTOFPEDESTRIANACCESSEASEMENTANDCANCELLATIONOF PORTIONOFEASEMENT16,infavoroftheCOUNTYOFKAUAI,apolitical subdivisionoftheStateofHawaii,dated---(acknowledgedSeptember6,2011, January31,2012andMarch15,2012),recordedasDocumentNo.A-44710562;granting anonexclusiveeasementforpedestrianaccesspurposesoverandacrossEasementSA-1-B, saideasementbeingmoreparticularlydescribedtherein,andasshownonthemapattached thereto.

(D) DESIGNATIONOFEASEMENT"A-2-B"forgolfcoursepurposes,asshownon subdivisionmappreparedbyKevinK.Kea,LicensedProfessionalLandSurveyor,with AceLandSurveyingLLC,datedSeptember8,2010,revisedDecember30,2010,and recertifiedbytheChairmanofthePlanningCommission,CountyofKauai,andthe PlanningDepartmentonJanuary11,2011.

(B)DESIGNATIONOFEASEMENT"L-9"forutilitypurposes,referencedonsubdivision mappreparedbyKevinK.Kea,LicensedProfessionalLandSurveyor,withAceLand SurveyingLLC,datedSeptember8,2010,revisedonDecember30,2010,andrecertified bytheChairmanofthePlanningCommission,CountyofKauai,andthePlanning DepartmentonJanuary11,2011.

35. -ASTOLOT700ONLY:-

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-ASTOLOT701ONLY:-

(A)DESIGNATIONOFEASEMENT"L-8"forutilitypurposes,referencedonsubdivision mappreparedbyKevinK.Kea,LicensedProfessionalLandSurveyor,withAceLand SurveyingLLC,datedSeptember8,2010,revisedonDecember30,2010,andrecertified bytheChairmanofthePlanningCommission,CountyofKauai,andthePlanning DepartmentonJanuary11,2011.

36.

(A)DESIGNATIONOFEASEMENT"L-1"forlandscape,utilityandelectricalpurposes, referencedonsubdivisionmappreparedbyKevinK.Kea,LicensedProfessionalLand Surveyor,withAceLandSurveyingLLC,datedSeptember8,2010,revisedon December30,2010,andrecertifiedbytheChairmanofthePlanningCommission,County ofKauai,andthePlanningDepartmentonJanuary11,2011.

(B)DESIGNATIONOFEASEMENT"AU-3A"foraccessandutilitypurposes,referencedon subdivisionmappreparedbyKevinK.Kea,LicensedProfessionalLandSurveyor,with AceLandSurveyingLLC,datedSeptember8,2010,revisedonDecember30,2010,and recertifiedbytheChairmanofthePlanningCommission,CountyofKauai,andthe PlanningDepartmentonJanuary11,2011.

37. Thetermsandprovisionscontainedinthefollowing: INSTRUMENT:FIRSTAMENDEDANDRESTATEDDECLARATIONOF CONDOMINIUMPROPERTYREGIMEOFTKRESORT CONDOMINIUM DATED:effectiveasofDecember14,2016 RECORDED:DocumentNo.A-61990858 MAP:5545andanyamendmentsthereto TheforegoingFirstAmendedandRestatedDeclarationrestatestheoriginalDeclarationdated effectiveasofJune2,2016,recordedasDocumentNo.A-60090448,andanyamendmentsthereto. SaidaboveDeclarationwasamendedbyinstrumentsdatedMay17,2018,recordedasDocument No.A-67150668,anddatedOctober29,2018,recordedasDocumentNo.A-68770716.

34. -ASTOLOT700ANDLOT701ONLY:-

DESIGNATIONOFEASEMENT"L-2"forutilitypurposes,referencedonsubdivisionmap preparedbyKevinK.Kea,LicensedProfessionalLandSurveyor,withAceLandSurveyingLLC, datedSeptember8,2010,revisedonDecember30,2010,andrecertifiedbytheChairmanofthe PlanningCommission,CountyofKauai,andthePlanningDepartmentonJanuary11,2011.

INSTRUMENT:BYLAWSOFASSOCIATIONOFAPARTMENTOWNERS OFTKRESORTCONDOMINIUM

39. -ASTOLOT9-AANDLOT9-BONLY:-

FOURTHAMENDMENTTOFIRSTAMENDEDANDRESTATEDDECLARATIONOF CONDOMINIUMPROPERTYREGIMEOFTKRESORTCONDOMINIUMdatedDecember 16,2021,recordedasDocumentNo.A-80310134.

40.

DATED:effectiveasofJune2,2016

DATED:April8,2022 RECORDED:DocumentNo.A-81370346 AMOUNT:$35,000,000.00

-NOTE:-NoconsentgivenbyMOSAICTIMBERSKAUAI,LLC,aDelawarelimited liabilitycompany,andAXOSBANK.

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GRANTOFEASEMENTinfavorofKAUAIISLANDUTILITYCOOPERATIVE,acooperative associationformedpursuanttotheprovisionofChapter421CoftheHawaiiRevisedStatutes,dated effectiveasofFebruary6,2019,recordedasDocumentNo.A-70970749;grantingarightand easementforutilitypurposesin,over,under,upon,acrossandthroughEasements"UT-20"and "UT-21",saideasementsbeingmoreparticularlydescribedtherein,andasshownonthemap attachedthereto.

38. Thetermsandprovisionscontainedinthefollowing:

RECORDED:DocumentNo.A-60090449

MORTGAGE,ASSIGNMENTOFLEASESANDRENTS,SECURITY AGREEMENTANDFIXTUREFILING

MORTGAGOR:TOWERKAUAILAGOONS9B,LLC,aDelawarelimited liabilitycompany

THIRDAMENDMENTTOFIRSTAMENDEDANDRESTATEDDECLARATIONOF CONDOMINIUMPROPERTYREGIMEOFTKRESORTCONDOMINIUMANDAMENDED CONDOMINIUMMAP;ASSIGNMENTOFRESERVEDRIGHTS;ANDGRANTOF EASEMENTSdatedFebruary11,2021,recordedasDocumentNo.A-78370140.

MORTGAGEE:UNITEDSTATESFIREINSURANCECOMPANY,aDelaware corporation,THENORTHRIVERINSURANCECOMPANY,a NewJerseycorporation,ZENITHINSURANCECOMPANY,a Californiacorporation,andKWTIMBERSKAUAIOCEAN CLUBLLC,aDelawarelimitedliabilitycompany

SaidBylawswereamendedbyinstrumentdatedeffectiveasofDecember14,2016,recordedas DocumentNo.A-61930822.

DATED:effectiveasofDecember23,2016

RECORDED:DocumentNo.A-81370347

ASSIGNMENTOFLEASESANDRENTS

43. Thetermsandprovisionscontainedinthefollowing:

RECORDED:DocumentNo.A-62220726

ASSIGNOR:TOWERKAUAILAGOONS9B,LLC,aDelawarelimited liabilitycompany

INSTRUMENT:FIRSTAMENDEDANDRESTATEDTKRESORT VACATIONOWNERSHIPPROJECTDECLARATIONOF COVENANTS,CONDITIONSANDRESTRICTIONS

DEBTOR:TOWERKAUAILAGOONS9B,LLC

RECORDED:DocumentNo.A-81370348

FINANCINGSTATEMENT

42.

ASSIGNEE:UNITEDSTATESFIREINSURANCECOMPANY,a Delawarecorporation,THENORTHRIVERINSURANCE COMPANY,aNewJerseycorporation,ZENITHINSURANCE COMPANY,aCaliforniacorporation,andKWTIMBERS KAUAIOCEANCLUBLLC,aDelawarelimitedliability Company

41.

AMOUNT:$35,000,000.00

SECUREDPARTY:UNITEDSTATESFIREINSURANCECOMPANY,a Delawarecorporation,THENORTHRIVERINSURANCE COMPANY,aNewJerseycorporation,ZENITHINSURANCE COMPANY,aCaliforniacorporation,andKWTIMBERS KAUAIOCEANCLUBLLC,aDelawarelimitedliability Company

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DATED::April8,2022

RECORDEDON::April12,2022

Theforegoingincludes,butisnotlimitedto,mattersrelatingtorightoffirstrefusal,andassociation lienswhichmaybesuperiortocertainmortgages.

(Affectscertainapartmentsinthe"TKRESORTCONDOMINIUM"projectmoreparticularly describedtherein.)

TheforegoingFirstAmendedandRestatedDeclarationrestatestheoriginalDeclarationdated June2,2016,recordedasDocumentNo.A-60090450.

DECLARATIONOFREMOVALdatedMarch3,2021,recordedasDocumentNo.A-78070197.

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FIRSTAMENDEDANDRESTATEDTKRESORTVACATIONOWNERSHIPPROJECT DECLARATIONOFCOVENANTS,CONDITIONSANDRESTRICTIONSDECLARATION OFANNEXATIONANDSECONDAMENDMENTdatedDecember16,2021,recordedas DocumentNos.A-80310135thruA-80310136.

44.

Anyunrecordedleasesandmattersarisingfromoraffectingthesame.

47.

Anylien(orclaimoflien)forservices,laborormaterialarisingfromanimprovementorwork relatedtotheland.

ENDOFEXHIBITA

Anymatters,includingbutnotlimitedtomortgage,liensoradditionalencumbrances,affecting thoseownershipinterestsalreadysoldtothirdpartypurchasers.

-NOTE:-NojoinderbyTOWERKAUAILAGOONSSUB7,LLC,aDelawarelimited liabilitycompany.

SaidFirstAmendedandRestatedDeclarationwasamendedbyinstrumentdatedMarch3,2021, recordedasDocumentNo.A-78070198.

46.

45.

Encroachments,ifany,whichwouldbereferencedonacorrectsurvey.

TKRESORTVACATIONOWNERSASSOCIATION ESTIMATEDANNUALBUDGET

(1)“OtherCharges-CommunityAssociationAssessments"-Thesefeesaretheannual assessmentstheCondominiumAssociationiscollectingonbehalfof,andasanaccommodation to,theKauaiLagoonsCommunityAssociation(KLCA)inconnectionwitheach“Resort Apartment”(assuchtermisdefinedintheCondominiumDeclaration).

Notes:

(2)“OtherCharges-HokualaClubMembershipAssessments”-Thesefeesaretheannual assessmentstheCondominiumAssociationiscollectingonbehalfof,andasanaccommodation to,theHokualaClub.

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(3)EachClubInterest’smaintenancefeeassessmentcannotbecomputedsimplyby multiplyingitspercentagecommoninterestbythetotalsshowninthisExhibit.Rather,pursuant toChapter8oftheClubDeclaration,theClubExpensesoftheProject(and,thus,eachClub

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(5)EachOwnerofaClubInterestshallbecomeobligatedtostartpayingtheassessments allocatedtotheClubInterest(includingtheClubInterest’sshareofCommonExpenses)upon takingtitletotheClubInterestatclosing.

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Interest’sassessments)areallocatedamongtheOwnersinafairandequitablemannerbasedona formulaormethodimplementedbythePlanManager.TheAssociation’sBoardofDirectorshas delegatedtoTimbersHawaiiRealEstate,LLC,astheProject’scurrentPlanManager,thepower toallocatetheClubExpensesforthepurposesofdeterminingeachClubInterest’sannual assessment.

(4)TheRealEstateCommissionhasnotreviewedtheestimatesofannualassessmentsand disbursementsoftheCondominiumfortheiraccuracyorsufficiency.

ExpensesareallocatedbytheAssociation,andimplementedbythePlanManager,basedon differentallocationmethodologiesandfactors,including(a)therelativesizeofaClubUnit,(b)the typeofoccupancyallowedintheClubUnit,and(c)thenumberofClubUnitsineachtypeof occupancy.Thevariousmethodologiesandfactorsarethenappliedbasedonthetypeofexpenses atissue.Allocationmethodologiesandfactorswillbeevaluatedperiodicallyand,thus,aresubject tochangefromtimetotime,whichmeansthattheresultingClubExpenseallocationsandannual assessmentsaresubjecttochangeaswell.

TypeF Maliula$1,947.41 $23,368.88

TheRealEstateCommissionhasnotreviewedtheestimatesofassessmentsanddisbursementsof theCondominiumfortheiraccuracyorsufficiency.

TypeA Kaiholo$4,284.30 $51,411.54

TypeB Kaiholo$4,284.30$51,411.54

Thefeesreferencedabovedonotincludethecostsof,orchargesfor,anyofthefollowingutility servicesfortheClubUnit:electricity,gas,water,sewerandTVcable.Forfurtherinformation, seetheparagraphon“Utilities”onpage19oftheDeveloper’sPublicReportfortheCondominium.

UnitType ProgramDescription MonthlyFeeperClub Interest AnnualTotalperClub Interest

ESTIMATESOFASSESSMENTS FORCLUBINTERESTSCOVEREDBY THISDISCLOSURESTATEMENT

**EachClubInterest’sassessmentcannotbecomputedsimplybymultiplyingitspercentage commoninterestbythetotalsshownabove.Formoreinformation,seeNote(3)ontheEstimated AnnualBudget.

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TypeD Kaiholo$4,284.30$51,411.54

EachOwnershallbecomeobligatedtostartpayingtheassessmentsallocatedtotheirClubInterest (includingtheClubInterest’sshareofCommonExpenses)upontakingtitletotheClubInterestat closing.

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EXHIBITD

TITLEGUARANTYSCHEDULEOFESCROW&TITLEFEES TIMBERSKAUAI–OCEANCLUB&RESIDENCES (TimeshareInterest)

Ifmorethanonetimeshareinterestispurchasedunderthesamepurchaseagreement,the escrowandtitlefeeswillbebasedontheaggregatepurchasepricesetforthinthepurchase agreement.

SalesPriceRangeEscrowFeeTitleFee $200,000 $500,000 $700+tax $1,000 $500,001 - $1,000,000 $1,200+tax $1,500 $1,000,001 $2,000,000 $1,700+tax $2,400 $2,000,001 $3,000,000 $2,400+tax $3,200 $3,000,001 $4,000,000 $3,100+tax $4,000 $4,000,001 $5,000,000 $3,800+tax $4,800 $5,000,001 - $6,000,000 $4,500+tax $5,600 $6,000,001 $7,000,000 $4,500+tax $6,400 $7,000,001 $8,000,000 $4,500+tax $7,200

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EXHIBIT“A”TOESCROWAGREEMENTDATEDJANUARY11,2017

Atthetimeofclosing,aseparateescrowfeeandtitleinsurancefeemaybechargedforaparking unit,storagelockerorstorageunit,asapplicable.Ifaparkingunitorstorageunitissoldfollowing theclosing,escrowandtitlefeesforsuchunitwillbedeterminedpriortosuchclosing.

Ifadditionalescrowortitleworkisrequiredthatdoesnotpertaintothesalescontract,wereserve therighttochargeadditionalfees.

Thisspecialescrowandtitlefeewillremainineffectfortwoyearsfromdateofthisagreement.

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ARTICLEI GENERAL

ForeachClubYear,thePlanManagerwillprepareacalendarwhichshallgenerallyrunfromaboutthefirst weekofNovemberthroughthelastweekofOctoberandwhichshalldefineperiods,eachofeitherone-weekor two-weekduration(asdescribedbelow)andeachbeginningandendingonaSaturday(“VacationPeriods”),from whichOwnersmayselecttheirPlannedVacations(the“ClubCalendar”).Therewillbetwo“SelectionPeriods”each ClubYearduringwhichOwnerswillreservetheirPlannedVacations.TherearetwotypesofPlannedVacations: (i)thePlannedVacationsreservedduringthefirstSelectionPeriod,whichshalleachbeforatwoweekVacation

RESERVATIONPROCEDURES

TheKaiholoandMaliulaProgramsinvolvearotatingpriorityandreservationsystemusingMembership NumbersandMembershipGroupLettersthathasbeenestablishedforeachoftheKaiholoProgramandtheMaliula ProgramtoinsurethatuseoftheClubbytheClubInterestOwnersisfair.

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TheseReservationProceduresarepromulgatedasoftheEffectiveDateoftheDeclarationofCovenants, ConditionsandRestrictionsoftheTKResortVacationOwnershipProject(asamendedandsupplementedfromtime totime,the“ClubDeclaration”).CapitalizedtermsusedbutnotdefinedintheseReservationProceduresshallhave themeaningsgiventhemintheClubDeclaration.

TherearemultipleClubUnits,someofwhichareownedbyOwnersholdingone-sixthundividedinterestsas tenantsincommontherein(the“KaiholoProgram”)andsomeofwhichareownedbyOwnersholdingone-twelfth undividedinterestsastenantsincommontherein(the“MaliulaProgram”).TheKaiholoProgramandtheMaliula Programareeachseparate“Programs”withintheClub.TheseReservationProceduresapplytotheClubUnitsofthe KaiholoUnitTypeandtheMaliulaUnitTypeandtotheOwnersofClubIntereststherein.EachClubInterestOwner andhisorherOccupantsshallatalltimescomplywiththeseReservationProceduresandusetheirbesteffortsto ensurethatsuchReservationProceduresarefullyandfaithfullyobservedbyotherClubInterestOwnersand Occupants.TheAssociationreservestherighttoaltertheseReservationProceduresfromtimetotimeasconditions warrant,subjecttoArticle13oftheClubDeclaration.

EachOwnerintheVOProgrammayselectacertainnumberofplanneduseeachyearduringtheVacation Periodsdescribedbelow(each,a“PlannedVacation”)and,afterallPlannedVacationsareconfirmed,Ownersmay selectSpaceAvailableVacationsandShortNoticeVacations,allasdescribedbelow(each,a“Vacation”).

“MembershipGroupLetter”meansalettercorrespondingtothegroupofClubInterestOwnersforeachof theKaiholoandMaliulaPrograms,whichletterswillbeassignedtoeachoftheMembersbasedontheirMembership Number.UntilallClubInterestshavebeensold,thesizeofeachgroupandnumberofgroupsmayfluctuate,butthe usagedescribedhereinwillnotbeaffected.“MembershipNumber”meansthenumberthatisassignedtoeachClub InterestOwnersandwhichformsthebasisfortheMembershipGroupLetter.AtthetimeofpurchasingaClubInterest, eachOwnerwillbeassignedthenextavailableMembershipNumberfortheKaiholoProgramortheMaliulaProgram, asapplicable,whichwillcorrespondtowhenheorshepurchases(i.e.thefirstbuyerofaClubInterestintheMaliula Programwillreceive#1,thesecondbuyerwillreceive#2,andsoon).IfanOwnerwishes,theymaychooseahigher MembershipNumberthanthatwhichwouldotherwisebeassignedinordertoensureahigherreservationpriorityina specific,upcomingyear.MembershipNumberswillbeusedforeachProgramtoallocatePlannedVacationtimesfor thoserareweekswhendemandforClubUnitTypesinaProgrammayexceedsupply.EachMember’sMembership Numberwillneverchange.

TheinitialClubCalendarforeachClubYearwillbedeliveredtotheOwnersonorbeforeApril1ofthe calendaryearinwhichtheClubYearwillcommence.TheinitialClubCalendarforeachClubYearwillspecify twenty-six(26)periodsoftwoweekdurationforreservationoftheTwoWeekPlannedVacations.TheVacation PeriodavailableduringthesecondSelectionPeriodshallbeforoneweekperiods.

Period(the“TwoWeekPlannedVacation”),and(ii)thePlannedVacationsreservedduringthesecondSelection Period,whichshalleachbeforaoneweekVacationPeriod(the“OneWeekPlannedVacation”).

OnorbeforeJune1,thePlanManagerwillconfirmthereservationofbothofOwner’sTwoWeekPlanned VacationsandwilldistributeanupdatedClubCalendarthatidentifiestheremainingVacationPeriods(thosethatwere notreservedduringthefirstSelectionPeriod),eachofwhichshallbeofoneweekduration.

OnorbeforeMay1ofeachyear,OwnerswillhavereturnedthecompletedPlannedVacationreservation formsforthefirstSelectionPeriodtothePlanManager.ItiseachOwner’sresponsibilitytocompleteandreturnthe PlannedVacationreservationformbysuchdatetopreservepriorityrights.AnyPlannedVacationreservationforms receivedafterMay1forthefirstSelectionPeriodwillbehandledonafirst-come,first-servedbasisafterallPlanned Vacationreservationformsreceivedinatimelymannerhavebeenprocessed.

EXHIBITE Page2of9

ReservationsforFirstSelectionPeriod;TwoWeekPlannedVacations. OnorbeforeApril1ofeachyear, thePlanManagerwillprovideaPlannedVacationreservationformforthefirstSelectionPeriodtoallOwners, requestingthateachOwnerselectVacationPerioddatesforbothofsuchOwner’sTwoWeekPlannedVacations. EachOwnerwillhavetheabilitytobooktwo(2)TwoWeekPlannedVacationsduringtheFirstSelectionPeriod. EachOwner’sPriorityAssignmentwillbenotedonthereservationform.IfthePlannedVacationreservationform forthefirstSelectionPeriodisnotreceivedbyanOwnerbyApril1,theOwnershouldimmediatelynotifythePlan Manager.

ARTICLEII

KAIHOLOPROGRAM PLANNEDVACATIONS

OwnersintheKaiholoProgramhavetheopportunitytoreserveuptosix(6)weeksofPlannedVacationsin eachClubYear.Ownerswillreservetwo(2)TwoWeekPlannedVacationsintheFirstSelectionPeriodandtwo(2) OneWeekPlannedVacationsintheSecondSelectionPeriodduringeachClubYearforatotalofsix(6)Planned VacationWeeks.EachOwner’sreservationforaPlannedVacationwillbeforuseofaClubUnitclassifiedasa KaiholoUnitType.PriorityforreservationsduringeachClubYearwillbebasedontheMembershipGrouptowhich thereservingOwnerbelongsandtheoperationofthisKaiholoProgram.IntheKaiholoProgram,therewillbesix(6) MembershipGroups,designatedA-F,thatwillbeutilizedbythePlanManagerinallocatingPlannedVacationtimes. TheMembershipNumbersassignedtoeachGroupwilldependonthenumberofClubUnitsintheKaiholoProgram, suchthatifeight(8)ClubUnitsaresubmittedtotheKaiholoProgram,MembershipNumbers1-8willbeassignedto GroupA,MembershipNumbers9-16willbeassignedtoGroupB,andsoon.

ReservationsforSecondSelectionPeriod;OneWeekPlannedVacation. OnorbeforeJune1ofeachyear, thePlanManagerwillprovideaPlannedVacationreservationformforthesecondSelectionPeriodtoallOwners, requestingthateachOwnerselectVacationPerioddatesforsuchOwner’sremainingtwoPlannedVacations,each whichwillbeOneWeekPlannedVacations.EachOwnerwillhavetheabilitytobooktwo(2)OneWeekPlanned VacationsduringtheSecondSelectionPeriod.EachOwner’sPriorityNumberwillbenotedonthereservationform bythePlanManager.IfthePlannedVacationreservationformforthesecondSelectionPeriodisnotreceivedbyan OwnerbyJune1,theOwnershouldimmediatelynotifythePlanManager.

ReservationsforSecondSelectionPeriod;OneWeekPlannedVacation. OnorbeforeJune1ofeachyear, thePlanManagerwillprovideaPlannedVacationreservationformforthesecondSelectionPeriodtoallOwners, requestingthateachOwnerselectVacationPerioddatesforsuchOwner’ssecondPlannedVacation,whichwillbea OneWeekPlannedVacation.EachOwnerwillhavetheabilitytobookone(1)OneWeekPlannedVacationduring theSecondSelectionPeriod.EachOwner’sPriorityNumberwillbenotedonthereservationformbythePlan Manager.IfthePlannedVacationreservationformforthesecondSelectionPeriodisnotreceivedbyanOwnerby June1,theOwnershouldimmediatelynotifythePlanManager.

OnorbeforeAugust1,thePlanManagerwillconfirmthereservationofeachOwner’sVacationPeriodfor thesecondSelectionPeriodandwilldistributeanupdatedClubCalendarthatidentifiesalltimethatwasnotreserved forPlannedVacations.

ReservationsforFirstSelectionPeriod;TwoWeekPlannedVacation. OnorbeforeApril1ofeachyear,the PlanManagerwillprovideaPlannedVacationreservationformforthefirstSelectionPeriodtoallOwners,requesting thateachOwnerselectVacationPerioddatesforsuchOwner’sTwoWeekPlannedVacation.EachOwnerwillhavethe abilitytobookone(1)TwoWeekPlannedVacationduringtheFirstSelectionPeriod.EachOwner’sPriorityAssignment willbenotedonthereservationform.IfthePlannedVacationreservationformforthefirstSelectionPeriodisnot receivedbyanOwnerbyApril1,theOwnershouldimmediatelynotifythePlanManager.

OnorbeforeJuly1ofeachyear,OwnerswillhavereturnedthecompletedPlannedVacationreservation formsforthesecondSelectionPeriodtothePlanManager.ItiseachOwner’sresponsibilitytocompleteandreturn thePlannedVacationreservationformbysuchdatetopreservepriorityrights.AnyPlannedVacationreservation formsreceivedafterJuly1forthesecondSelectionPeriodwillbehandledonafirst-come,first-servedbasisafterall PlannedVacationreservationformsreceivedinatimelymannerhavebeenprocessed.

ARTICLEIII

formsreceivedafterJuly1forthesecondSelectionPeriodwillbehandledonafirst-come,first-servedbasisafterall PlannedVacationreservationformsreceivedinatimelymannerhavebeenprocessed.

OnorbeforeJune1,thePlanManagerwillconfirmthereservationofeachOwner’sTwoWeekPlanned VacationandwilldistributeanupdatedClubCalendarthatidentifiestheremainingVacationPeriods(thosethatwere notreservedduringthefirstSelectionPeriod),eachofwhichshallbeofoneweekduration.

MALIULAPROGRAM PLANNEDVACATIONS

OwnersintheMaliulaProgramhavetheopportunitytoreserveuptothree(3)weeksofPlannedVacations ineachClubYear.Ownerswillreserveone(1)TwoWeekPlannedVacationsintheFirstSelectionPeriodandone (1)OneWeekPlannedVacationsintheSecondSelectionPeriodduringeachClubYearforatotalofthree(3)Planned VacationWeeks.EachOwner’sreservationforaPlannedVacationwillbeforuseofaClubUnitclassifiedasa MaliulaUnitType.PriorityforreservationsduringeachClubYearwillbebasedontheMembershipGrouptowhich thereservingOwnerbelongsandtheoperationofthisMaliulaProgram.IntheMaliulaProgram,therewillbetwelve (12)MembershipGroups,designatedA-L,thatwillbeutilizedbythePlanManagerinallocatingPlannedVacation times.TheMembershipNumbersassignedtoeachGroupwilldependonthenumberofClubUnitsintheMaliula Program,suchthatifseventeen(17)ClubUnitsaresubmittedtotheMaliulaProgram,MembershipNumbers1-17 willbeassignedtoGroupA,Numbers18-34willbeassignedtoGroupB,andsoon.

EXHIBITE Page3of9

ARTICLEVI

DesignatedMember. IftheOwnerofaClubInterestisanentityoracombinationofindividuals,theOwner shalldesignateanindividual(the“DesignatedMember”)bydeliveringawrittennoticetothePlanManagerthat includesthename,address,telephonenumber,andanyfacsimilenumberandelectronicmailaddressoftheDesignated Member.TheDesignatedMembershallbethedesignatedindividualwithwhomthePlanManagershalldealwith respecttomakingreservations,sendingconfirmations,andprovidingotherservicestotheOwner.PlanManagermay chargeanadministrativePersonalChargefromtimetotime,asPlanManagermaydetermine,foreachrequestto changeaDesignatedMemberdesignation.

ARTICLEV

SHORTNOTICEVACATIONS

SPACEAVAILABLEVACATIONS

OwnerUse. ReferencestouseoroccupancybyanOwnerintheseReservationProceduresshallincludeuse oroccupancybysuchOwnerand/orsuchOwner’sFamilyMembers.IftheOwnerisanentityratherthananindividual, referencestoFamilyMembersintheseReservationProceduresshallbedeemedtomean,inreferencetosuchOwners, theFamilyMembersofthemember,manager,officer,directororsimilarindividualwithprincipaleconomic ownershipofsuchOwnerholdingaconfirmedreservationforaVacation.APlannedVacationmayalsobeusedby friends,businessassociates,orotherunaccompaniedGuestsasdesignatedbytheOwner.SpaceAvailableVacations andShortNoticeVacationsmayonlybeusedbythereservingOwnerorsuchOwner’sFamilyMembers;provided

“ShortNoticeVacations”areawayforOwnerstobookspur-of-the-momentvacationsforanytimethathas notbeenreservedforPlannedorSpaceAvailableVacations.WhileaSpaceAvailableVacationmaybereservedwell inadvance,ShortNoticeVacationsmayonlybebookedanytimewithinthirty(30)daysofanOwner’sdesiredarrival. FromandafterAugust1ofeachyear,OwnerssimplyneedtocontactthePlanManageranytimewithinthirty(30) daysoftheirdesiredarrivaltoconfirmavailabilityandreserveaShortNoticeVacation.Ownersmayonlyhaveone ShortNoticeVacationreservedatanygiventime.OnceanOwnerchecksinforareservedShortNoticeVacation,the Ownermayreserveanother.ShortNoticeVacationrequestswillbeprocessedonafirst-come,first-servedbasis.The PlanManagerwillprocessShortNoticeVacationrequestsreceivedatthesametimethroughalotterysystem.Owners intheKaiholoProgrammayonlyrequestShortNoticeVacationsinClubUnitsclassifiedasaKaiholoUnitType. OwnersintheMaliulaProgrammayonlyrequestShortNoticeVacationsintheClubUnitsclassifiedasaMaliulaUnit Type.

FromandafterAugust1ofeachyear,Ownersmayselecttimeperiodsofuptosevenconsecutivedayseach fromthetimethatwasnotbookedforPlannedVacationsasshownontheupdatedClubCalendar(“SpaceAvailable Vacations”).OwnersintheKaiholoProgrammayonlyhavetwoSpaceAvailableVacationsreservedatanygiven timeandmayonlyrequestSpaceAvailableVacationsintheClubUnitsclassifiedasaKaiholoUnitType.Ownersin theMaliulaProgrammayonlyhaveoneSpaceAvailableVacationreservedatanygiventimeandmayonlyrequest SpaceAvailableVacationsintheClubUnitsclassifiedasaMaliulaUnitType.OnceanOwnerchecksinforaSpace AvailableVacation,thatOwnermayreserveanother.SpaceAvailableVacationrequestswillbeprocessedonafirstcome,first-servedbasis.ThePlanManagerwillprocessSpaceAvailableVacationrequestsreceivedatthesametime throughalotterysystem.ThePlanManagershallprovideeachOwnerwithconfirmationofreservedSpaceAvailable VacationswithinfivedaysofthatOwner’srequestforaSpaceAvailableVacation.

EXHIBITE Page4of9

ARTICLEIV

OPERATIONALMATTERS

Rental. OwnersintheKaiholoProgrammayrentuptotwoweeksoftheirPlannedVacationtimeineach calendaryearandeachwithaminimumstayofsix(6)nights.OwnersintheMaliulaProgrammayrentoneweekof PlannedVacationtimeineachcalendaryear,withaminimumstayofsix(6)nights.Rentalislimitedtorentingsuch VacationtimethroughthePlanManager,aBoard-approvedrentalagentthathasagreedtothecheck-in,security,and accountingproceduresadoptedbytheAssociation,asfurtherdescribedintheCondominiumDeclaration,fromtimeto time.OwnersmaynotrentSpaceAvailableVacationorShortNoticeVacationreservations.Ownersmaynotrenttoa numberofGuestsinexcessofthesleepingcapacitystatedintheCondominiumDeclarationfortheapplicableClubUnit. EachOwnerisresponsiblefortheconductofallOccupantsofsuchOwner’sClubUnitandforallfinancialobligations incurredbysuchpersonsattheCondominium.OwnermustregisterallrentalOccupantswiththePlanManager,using thePlanManager’sapprovedrentalregistrationforms,atleast48hoursinadvanceofarrival.Uponcheck-inatthe Condominium,suchrentalOccupantsshallpresentidentificationinaformacceptabletothePlanManagerandan acceptableformofpaymentforPersonalCharges,togetherwithauthorizationtoenterandusesuchOwner’sClubUnit fortheVacationPeriodinquestion.ThePlanManager,initsdiscretion,maydeclineaccesstosuchClubUnitinthe eventadequateidentificationisnotprovided.

NoCarryForwardofUseRights. If,forwhateverreason,anOwnerdoesnotusealloftheVacationPeriods thatsuchOwnerisentitledtoreserveoruseinaparticularClubYear,theunusedtimecannotbeaccumulatedand carriedforwardforfutureuse,andsuchOwnershallremainresponsibleforcomplyingwithalloftheprovisionsof thedocumentsgoverningtheCondominiumandtheClub,includingbutnotlimitedtothepaymentofallChargesand otheramountsleviedagainsthisorherClubInterest.

EXHIBITE Page5of9

Waitlist. ThePlanManagerwillmaintainawaitlistduringeachClubYearforeachVacationPeriodinwhich demandexceedssupply.EachOwnermayholdonewaitlistpositionatatime.Suchwaitlistrequestsmaybemade afterwrittenconfirmationofPlannedVacationshasbeengivenforeachSelectionPeriod.IftheVacationPeriodis usedaspreviouslyreserved,theOwnermayrequestanotherwaitlistposition.Ifthepreviousreservationforthe VacationPeriodiscancelled,thePlanManagerwillnotifythewaitlistedOwneroftheavailableVacationPeriodand offerthewaitlistedOwnerachancetomakeasubstitutereservation.UseofaClubUnitunderasubstitutereservation shallbeconsideredaShortNoticeVacationifreservedwithinthirty(30)daysofarrivaloraSpaceAvailableVacation ifreservedgreaterthatthirty(30)dayspriortoarrival.

Cancellation/FailuretoCancelorUse. IfanOwnerwishestocancelaPlannedVacation,butretainthe usagerightsassociatedwiththecanceledPlannedVacation,awrittenrequestforcancellationmustbereceivedbythe PlanManager,atleastforty-five(45)dayspriortotheOwner’sscheduledarrival.Ifthenoticeofcancellationisnot receivedinwritingatleastforty-five(45)dayspriortothescheduledarrival,thePlanManagerwilldeemallofthe PlannedVacationdaysforwhichpropernotificationwasnotreceivedtohavebeenused.Thereisnoguaranteethat, evenifpropernoticeofcancellationisgiven,thecancelingOwnerwillbeabletosecureanotherPlannedVacation.If anOwnerfailstocheckinforaSpaceAvailableVacationwithoutgivingnoticetothePlanManageratleastforty-five (45)dayspriortosuchOwner’sscheduledcheckin,theOwnerwillberequiredtopayafeeassetforthontheFee Scheduledescribedbelow,unlesssuchSpaceAvailableVacationisbookedwithinforty-five(45)daysofthearrival date.SpaceAvailableVacationsbookedwithinthirty(30)daysofthearrivaldatemustbecancelledatleastfourteen (14)dayspriortotheOwner’sscheduledcheckinorsuchOwnermayberequiredtopayafeesetbythePlanManager.

ExchangingofPlannedVacations.

InternalExchange.OwnersmayexchangetheirconfirmedPlannedVacationswithotherOwners. ExchangesshouldbearrangeddirectlybetweenOwners.Writtennoticeofanexchangemustbeprovidedto thePlanManageratleastsevendayspriortothearrivaldateoftheOwnerusingtheearliestPlannedVacation involvedintheexchange.ThePlanManagerencouragesandwillmakereasonableeffortstofacilitatesuch exchangesbetweenOwners.

thatiftheOwnerisacombinationofindividualsoranentity,SpaceAvailableVacationsandShortNoticeVacations mayonlybereservedandusedbytheDesignatedMemberfortheOwnerandbythespouseordomesticpartnerof suchDesignatedMemberandsuchDesignatedMember’schildren(includingadoptedchildrenandstepchildren).For purposesoftheforegoingprovisions,anOwnerwhichisacombinationofindividualsoranentitymaynotchangeits DesignatedMembermorethanonceduringanyClubYear.

August1ReservationofSpaceAvailableVacationsandShortNoticeVacationscan commence.

May1ReservationformsforTwoWeekPlannedVacationsaredue.

July1ReservationformsfortheOneWeekPlannedVacationsaredue.

August1PlanManagerprovidesconfirmationofthereservedPlannedVacationsand updatedClubCalendar.

RESERVATIONSATAGLANCE

ExternalExchange.ForaslongasthereisaResortAffiliationAgreementinplacebetweenthe AssociationandPlanManager(oritsaffiliateordesignee)thatcoverstheClubUnits,eachOwnerintheKaiholo Programwillhaveanopportunitytoseektoexchangeuptosix(6)weeksofPlannedVacationtimeineachClub YearandeachOwnerintheMaliulaProgramwillhavetheopportunitytoexchangeuptothree(3)weeksof PlannedVacationtimeineachClubYear,forusetimeinotherprojectsthatarepartoftheexchangeor reciprocityprogramcoveredbysuchResortAffiliationAgreement.Otherwise,noOwnermaysubjectits interestinaClubUnittoorsubmitanyVacationtimetoanyexchangeorsimilarprogram,orotherwiseenter intoanexternalexchangearrangement,andthePlanManagershallnotrecognizeorhonoranyexternal exchangesmadeorattemptedtobemadeinviolationofthisparagraph.

CheckinandCheckOut. ThePlanManagershallestablishcheckinandcheckouttimes,whichshallbe indicatedontheClubCalendar.AkeyorotheraccessdevicetotheClubUnitwillbeprovidedatcheckinandmust bereturnedatcheckout.AllOwnersshallvacateandremoveallpersonalbelongingsfromtheirClubUnitnolater thanthedesignatedcheckouttimeonthelastdayoftheirreservedVacation.Theperiodbetweencheckouttimeand checkintimeistopermittheroutinecleaningandmaintenanceofClubUnit.Exceptionstothearrivalanddeparture timesmaybemadeatanytimebythePlanManager,subjecttoavailability.IfanOwnerfailstovacateaClubUnitat theprescribedtime,thePlanManagermaytakesuchpromptactionasmaybenecessaryinaccordancewiththeClub DeclarationandapplicablelawtoremovesuchOwner,togetherwiththepersonalbelongingsthereof,fromtheClub Unitwrongfullyoccupied.ExceptforbelongingsleftintheCondominiumlongtermrecreationalequipmentstorage andpersonalsoft-storagefacilities,neithertheAssociation,theCondominiumAssociation,northePlanManagershall beliableorresponsibleinanymannerwhatsoeverforthevalueofanypersonaleffectsleftinaClubUnitorelsewhere inorabouttheCondominiumattheendofareservedVacation.Allsuchpersonaleffectsshallbeconsideredabandoned andmaybesoldorotherwisedisposedofbythePlanManager.

EXHIBITE Page6of9

DayUse. ClubInterestOwnersandGuestsaccompaniedbyanOwnermayusetheCondominium’s amenitiesandClubservices(pools,KeikiClub,andvaletparking)totheextentopenandavailabletotheOwners,on afeeforusebasisassetforthintheClubRulesandRegulations,andtheCommercialApartmentsdesignatedasthe SpaandRestaurant,evenwhennotinresidence,subjecttotheconditions,limitationsandrestrictionsassetforthin theClubDocumentsandherein.GuestsmaybeaccompaniedbyanOwnerforafee.ClubInterestOwnersshould contactthePlanManager’sofficeatleast48hourspriortotheintendeddayofusetoassessavailabilityofservices andamenities.TheAssociationandPlanManagerhavetherighttorestrictdayusebyanyoneandtolimitthetotal numberofOwnersandOccupantsallowedaccesstodayuseonanygivenday.Thenumberofdayuseguests accompanyinganOwnermaybelimitedbytheAssociationorPlanManager.

June1PlanManagerprovidesconfirmationofTwoWeekPlannedVacation, updatedClubCalendarandreservationrequestformsforthesecondSelectionPeriod.

April1PlanManagerissuesClubCalendarandprovidesreservationrequestforms forthefirstSelectionPeriod.

One

Two Week Planned Vacation Two Week Planned Vacation One Week Planned Vacation One Week Planned Vacation Priority

YEAR2

YEAR6

One

Priority

One

EXHIBITE Page7of9 ROTATINGPRIORITYSCHEDULE KAIHOLOPROGRAM

One

1 C B B C 1 D C C D 2 D A A D 2 E B B E 3 E F F E 3 F A A F 4 F E E F 4 A F F A 5 A D D A 5 B E E B 6 B C C B 6 C D D C 1 Year1willbethefirstfullClubYearofoperation,providedthatthetimingprovisionsregardingreservationrequests andconfirmationmaybevariedbythePlanManagerasneededforYear1dependinguponthedateonwhichoccupancy actuallybeginsattheProject.DuringanypartialyearpriortothefirstfullClubYearofoperation,thePlanManager willusereasonablediscretioninassigningUsePeriods.

Priority

One

YEAR1

Two Week Planned Vacation Week Planned Vacation Week Planned Vacation Week Planned Vacation

Two Week Planned Vacation Two Week Planned Vacation Week Planned Vacation Week Planned

Two

1 E D D E 2 F C C F 3 A B B A 4 B A A B 5 C F F C 6DEED

Two

One

Two Week Planned Vacation Week Planned Vacation Week Planned Vacation Week Planned Vacation

Two Week Planned Vacation Two Week Planned Vacation One Week Planned Vacation One Week Planned Vacation

Two

1 A F F A 2 B E E B 3 C D D C 4 D C C D 5 E B B E 6FAAF

Two

YEAR5 Week Planned Vacation Week Planned Vacation Week Planned Vacation Week Planned Vacation

Priority

One

Vacation 1 F E E F 2 A D D A 3 B C C B 4 C B B C 5 D A A D 6EFFE

YEAR3 YEAR4

One

1 B A A B 2 C F F C 3DEED 4EDDE 5FCCF 6 A B B A

YEAR3 YEAR4

YEAR5

1 A L B A 2 B K C L 3 C J D K 4 D I E J 5 E H F I 6 F G G H 7 G F H G 8 H E I F 9 I D J E 10JCKD 11 K B L C 12 L A A B

EXHIBITE Page8of9 ROTATINGPRIORITYSCHEDULE MALIULAPROGRAM 2 Year1willbethefirstfullClubYearofoperation,providedthatthetimingprovisionsregardingreservationrequestsand confirmationmaybevariedbythePlanManagerasneededforYear1dependinguponthedateonwhichoccupancy actuallybeginsattheProject.DuringanypartialyearpriortothefirstfullClubYearofoperation,thePlanManagerwill usereasonablediscretioninassigningUsePeriods.

YEAR8

One

Vacation One

1GFHG 2 H E I F 3 I D J E 4 J C K D 5 K B L C 6 L A A B 7 A L B A 8 B K C L 9 C J D K 10 D I E J 11 E H F I 12 F G G H

Priority

YEAR1 YEAR2

Two

Planned Vacation 1EDFE 2 F C G D 3 G B H C 4 H A I B 5 I L J A 6 J K K L 7 K J L K 8 L I A J 9 A H B I 10 B G C H 11 C F D G 12 D E E F

Priority Week Planned Vacation Week Planned Vacation Week Planned Vacation Week

One

Two

Priority Week Planned Vacation Week Planned Vacation Week Planned Week Planned Vacation

Two Week Planned Vacation One Week Planned Vacation Week Planned Vacation Week Planned Vacation

One

Two Week Planned Vacation Week Planned Vacation Week Planned Vacation Week Planned Vacation

YEAR6

Two

One

YEAR7

1 C B D C 2 D A E B 3ELFA 4FKGL 5GJHK 6 H I I J 7 I H J I 8 J G K H 9 K F L G 10 L E A F 11 A D B E 12 B C C D

L 11GJHK 12

Two Week Planned Vacation One Week Planned Vacation Two Week Planned Vacation One Week Planned Vacation K J L K L I A J A H B I B G C H C F D G D E E F D F E F C G D G B H C H A I B J K K L

YEAR11 YEAR12

6 B

EXHIBITE Page9of9

4 L

11ILJA 12

7 E

10 F

YEAR9 YEAR10

8 D

Two Week Planned Vacation One Week Planned Vacation Two Week Planned Vacation One Week Planned Vacation I H J I J G K H K F L G E A F A D B E C C D C B D C A E B E L F A K G H I I J

EXHIBITF

2101MaliulaTypeF3/3.5 2102MaliulaTypeF3/3.5 2104Maliula TypeF 3/3.5 2108MaliulaTypeF3/3.5 2201MaliulaTypeF3/3.5 2202MaliulaTypeF3/3.5 2203MaliulaTypeF3/3.5 2204MaliulaTypeF3/3.5 2205MaliulaTypeF3/3.5 2301MaliulaTypeF3/3.5 2302MaliulaTypeF3/3.5 2303MaliulaTypeF3/3.5 2305MaliulaTypeF3/3.5 2405MaliulaTypeF3/3.5 3101Kaiholo TypeB 3/3.5 3103Kaiholo TypeB 3/3.5 3104Kaiholo TypeA 3/3.5 3105KaiholoTypeA3/3.5 3106KaiholoTypeA3/3.5 3107KaiholoTypeD4/4.5 3108KaiholoTypeD4/4.5 3109KaiholoTypeA3/3.5 3110KaiholoTypeA3/3.5 3111KaiholoTypeD4/4.5

EXHIBITF Page1of1

ApartmentNumber ProgramDescription UnitTypeBedrooms/Bathrooms

APARTMENTSANNEXEDTOTHECLUB (ClubUnits)