7.2_Specimen Timeshare Deed

LAND COURT SYSTEM

REGULAR SYSTEM

Return by Mail (X) Pickup ( ) To:

Tax Key No. _________________________

Total No. of Pages: _____

THE TK RESORT VACATION OWNERSHIP PROJECT DEED Club Interest No(s). _______ _____________________________________________________ (hereinafter referred to as “Grantor”), whose place of business and post office address is _________________________, in exchange for the money and other things of value received from _______________________, (referred to as “Grantee” or “you” whether one or more), whose address is ________________, by signing, delivering and having this document recorded transfers the following one or more Club Interest as defined in The TK Resort Vacation Ownership Project Declaration of Covenants, Conditions and Restrictions dated __________________, recorded at said Bureau as Document No. ___________________, as amended from time to time (the “Club Declaration”) to Grantee. ___[#]____ [Kaiholo]/[Maliula] Club Interest(s) more fully described as follows: I.

Club Interest No(s). _______, consisting of an undivided [fraction] percentage interest and Ownership Share as tenant in common with the holders of other undivided interests in and to the following:

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(A)

Resort Apartment No. ______ (“Club Unit”) of the condominium project (“Project”) known as “TK RESORT CONDOMINIUM,” as established by that certain Declaration of Condominium Property Regime (“Condominium Declaration”) dated ________, recorded at the Bureau of Conveyances of the State of Hawaii as Document No. ______________, and as shown on the plans thereof filed at said Bureau as Condominium Map No. _______________, as the same may be amended from time to time (the "Condominium Declaration"). The description of the land set forth in the Condominium Declaration is incorporated herein by this reference.

Together with appurtenant easements as follows: 1)

Nonexclusive easements for use of the common elements in accordance with the purpose for which they are intended without hindering or encroaching upon the lawful rights of the other unit owners, subject always to the exclusive use of the Limited Common Elements as provided in the Condominium Declaration.

2)

A nonexclusive easement in the other units in the Building in which the Club Unit is located for support.

3)

Nonexclusive easements for the use of the Common Elements for ingress to, egress from, utility services for and support, maintenance and repair of the Club Unit.

4)

In the case of encroachment by the Club Unit upon any other unit or common elements, a valid easement for such encroachment and the maintenance thereof shall and does exist in favor of and appurtenant to the Club Unit herein conveyed for so long as such encroachment continues.

In the event any building of the Project shall be partially or totally destroyed and then rebuilt, or in the event of any shifting, settlement or movement of any portion of the Project, encroachments upon any part of the common elements or units due to the same shall be permitted, and valid easements for such encroachments and the maintenance thereof shall exist in favor of and appurtenant to the Club Unit herein conveyed for so long as such encroachment continues.

5)

The right to use those certain Limited Common Elements of the Project, if any, which are described in the Condominium Declaration as being appurtenant to the Club Unit, provided that such easement shall be deemed conveyed or encumbered with the Club Unit even though such interest is not expressly mentioned or described in the conveyance.

EXCEPTING AND RESERVING AND SUBJECT TO all of the terms and conditions of the Condominium Declaration and easements for encroachments 2 DMWEST #14322088 v1

appurtenant to other units as they arise in the manner set forth in the preceding paragraph, now or hereafter existing thereon, and subject also to easements for access to the property from time to time during reasonable hours as may be necessary for the operation of the property or for making emergency repairs therein to prevent damage to the Common Elements or to another unit or units or for the installation, repair or replacement of any Common Elements.

(B)

An undivided ___________ Share with regard to the Club Unit as established by the Club Declaration, in and to the Common Elements of the Project, including the land described in said Condominium Declaration, as tenant in common with the holders or other undivided interest in and to said common elements.

AND II.

The exclusive right to reserve and then use and occupy a Club Unit of a similar Club Unit Type during the confirmed Use Periods reserved to each aforesaid Club Interest in accordance with, and subject to the Club Declaration and Reservation Procedures (defined therein), together with the right in common with owners of all other units to use and enjoy the Common Elements of the Project and to use and enjoy the Club Furnishings (defined in the Club Declaration) included in such Club Unit.

AND

III.

Membership in the TK Resort Vacation Owners Association and in the Association of Apartment Owners of TK Resort Condominium.

Being also portions or the premises described in those certain instruments dated ____________, made by and between _________________________________, as Grantor, and _____________________________________, as Grantee, recorded as said Bureau as Document No. ______________________.

SUBJECT, HOWEVER, to all encumbrances set forth in Exhibit “1” attached hereto and made a part hereof.

FURTHERMORE, no matter what else is said in any other part of this document (except to the extent prohibited by law), the Grantor reserves for itself and its successors and assigns certain rights set forth in the Condominium Declaration and Club Declaration (which means that the Grantor is not giving you these rights and that the Grantor can exercise these rights without your consent, approval or knowledge). These rights, as more fully set forth in the Condominium Declaration and Club Declaration, and all of the relevant provisions of those documents with respect to these rights are made a part of this document.

By signing this document and acquiring your Club Interest, you agree and consent to the exercise by Grantor of any of its reserved rights under the Condominium Declaration and Club Declaration to the extent necessary or proper to enable Grantor to effect its reserved rights 3 DMWEST #14322088 v1

thereunder. To facilitate Grantor’s exercise of its reserved rights, you hereby appoint Grantor as your “attorney-in-fact” which means that Grantor can act for you or on your behalf, with “full power of substitution,” which means that someone else may take Grantor’s place, to sign, deliver and record all documents and to do all things on your behalf, but only to the extent necessary or proper to enable Grantor to effect its reserved rights hereunder, which grant of authority, being coupled with an interest, which means that the Grantor has an interest beyond just in the power you are giving, cannot be revoked by you for the term of the reserved rights, and will not be affected by your disability, and which means that the grant of such power will be binding upon any person or entity you transfer your Club Interest to and will be considered automatically granted anew by any such person or entity upon such transfer or any interest therein, whether by deed, mortgage, or any other instrument of conveyance.

By signing this document and acquiring your Club Interest, you further agree for the benefit of all other Owners of Club Interests in the Club, to observe and perform at all times, all of the terms, covenants and conditions and restriction set forth in the Condominium Declaration, Bylaws of the Association of Apartment Owners of TK Resort Condominium, the Club Declaration, and the Bylaws of the TK Resort Vacation Owners Association, to be observed by you when required to do so, and to indemnify and hold Grantor harmless from your failure to observe and perform any of such terms, covenants, conditions and restrictions.

By signing this document and acquiring your Club Interest, you further agree that if you desire to sell or convey your Club Interest in the Club and for so long as Grantor has Club Interests to sell in the Club or Grantor or an affiliate of Grantor manages the Club, whichever shall be later, Grantor shall have the right of first refusal to purchase your Club Interest under the same terms and conditions (including financing terms) as may be offered to or by a bona fide third-party. Accordingly, you must notify Grantor in writing of your intent to list or sell your Club Interest. Your written notice to the Grantor must include the proposed listing or offer price and general terms of the proposed listing, sale or lease. Upon receipt of such written notice, Grantor shall have fifteen (15) days within which to notify you in writing as to whether the Grantor elects to exercise its right of first refusal set forth herein. If Grantor elects to exercise its right of first refusal, closing shall occur no later than sixty (60) days after Grantor notifies you in writing (within such fifteen (15) day period) of its decision to purchase the Club Interest. If Grantor elects not to exercise its right of first refusal or fails to notify you in writing of Grantor’s election to exercise its right of first refusal within such fifteen (15) day period, you shall be entitled, for a period of seven (7) months thereafter, to list your Club Interest with a third party resale agent or sell the Club Interest to a third party for a price equal to or greater than the price offered to Grantor without further notice to Grantor.

By signing this document and acquiring your Club interest, you further agree that membership in The Hokuala Club (as such term is defined in the Condominium Declaration) is a mandatory adjunct to ownership of your Club Interest. You agree to observe and perform at all times, all of the terms, covenants and conditions and restrictions set forth in the Club Declaration regarding membership in The Hokuala Club and to abide by the terms of all rules and regulations of The Hokuala Club and other of its membership documents. Your promise herein shall be 4 DMWEST #14322088 v1

secured by a lien on your Club Interest. Your failure to comply with the Condominium Declaration as to membership in The Hokuala Club, including the payment of Charges attendant to your Club Interest, which includes annual dues for membership in The Hokuala Club, may result in the suspension or termination of your rights of membership in The Hokuala Club and/or foreclosure of such lien.

Each promise you make in this document is also a “covenant running with the land” and an “equitable servitude and lien.” This means that the benefits of these promises also attach to the property rights and interests owned by each person to whom you make these promises.

When any one of them transfers his rights and interests, the benefits of your promises are automatically transferred at the same time. Every promise you make in this document also attaches to your Club Interest. This means that the burden of these promises is also automatically passed on to all persons who acquire your Club Interest or any interest in it. These persons must keep and obey your promises. Each of these persons in effect makes the same promises for himself and the persons who take over for him as you make in this document.

Also, to the extent provided in the Club Documents and Condominium Documents, “liens” are automatically imposed on your Club Interest(s) to secure each payment you promise to make. This means that if you (or anyone who takes over for you) do not pay, the Club Interest(s) covered by this document may be “foreclosed” on and it can be taken away from you (and from anyone who takes over for you) and sold to someone else to pay these debts.

Grantor and Grantee agree that this instrument may be executed in counterparts, each of which shall be deemed an original, and said counterparts shall together constitute one and the same instrument, binding on all of the parties thereto, notwithstanding that all of the parties are not signatories to the original or the same counterparts. For all purposes, including, without limitation, recordation, filing and delivery of this instrument, duplicate, unexecuted and unacknowledged pages of the counterparts may be discarded and the remaining pages assembled as one document.

[The remainder of this page has been intentionally left blank.]

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IN WITNESS WHEREOF, the parties hereto have made this document as of this _____ day of _________________, 20___.

[GRANTOR COMPANY NAME]

By: Its: “Grantor”

[Print Name] “Grantee”

[Print Name] “Grantee”

6 DMWEST #14322088 v1

STATE OF ____________________

) SS. ) )

COUNTY OF __________________

On this _____ day of ______________, 20____, before me personally appeared __________________________, to me personally known, who, being by me duly sworn or affirmed, did say that such person executed the foregoing instrument as the free act and deed of such person, and if applicable, in the capacities shown, having been duly authorized to execute such instrument in such capacity(ies).

Print Name: Notary Public, State of My commission expires:

Date: _______________

# Pages _________

Name: ____________________________

_____ Circuit

Doc. Description: ______________________ ______________________________________ Notary Signature NOTARY CERTIFICATION

7 DMWEST #14322088 v1

STATE OF ____________________

) SS. ) )

COUNTY OF __________________

On this _____ day of ______________, 20____, before me personally appeared _______________________, to me personally known, who, being by me duly sworn or affirmed, did say that such person executed the foregoing instrument as the free act and deed of such person, and if applicable, in the capacities shown, having been duly authorized to execute such instrument in such capacity(ies).

Print Name: Notary Public, State of My commission expires:

Date: _______________

# Pages _________

Name: ____________________________

_____ Circuit

Doc. Description: ______________________ ______________________________________ Notary Signature NOTARY CERTIFICATION

8 DMWEST #14322088 v1

STATE OF ____________________

) SS. ) )

COUNTY OF __________________

On this _____ day of ______________, 20____, before me personally appeared ________________, to me personally known, who, being by me duly sworn or affirmed, did say that such person executed the foregoing instrument as the free act and deed of such person, and if applicable, in the capacities shown, having been duly authorized to execute such instrument in such capacity(ies).

Print Name: Notary Public, State of My commission expires:

Date: _______________

# Pages _________

Name: ____________________________

_____ Circuit

Doc. Description: ______________________ ______________________________________ Notary Signature NOTARY CERTIFICATION

9 DMWEST #14322088 v1

EXHIBIT “1” LIST OF ENCUMBRANCES

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