KUKUIULA

A RESORT AND RESIDENTIAL COMMUNITY

Island of Kauai, State of Hawaii

SUPPLEMENTAL DISCLOSURE STATEMENT

For The Club Villas at Kukuiula
(Parcel Club Villas)

Subdeveloper
ABP-EWP Development LLC,
a Hawaii limited liability company

Dated: November 25, 2013

(Version 1)

This Supplemental Disclosure Statement for The Club Villas at Kukuiula (Parcel Club Villas) is meant to be
read in connection with the Master Disclosure Statement and provides specific information for buyers of
homes completed or to be completed by Subdeveloper.

NOTE: THE INFORMATION IN THIS SUPPLEMENTAL DISCLOSURE STATEMENT IS CURRENT

AS OF THE DATE NOTED ABOVE. READERS SHOULD CONTACT THEIR SALES AGENT TO
CONFIRM THAT THIS IS THE MOST CURRENT VERSION OF THIS STATEMENT AND THE
SCHEDULES.

The Kukuiula name, mark, indicia and logo are federally registered trademarks of Kukuiula
Development Company (Hawaii), LLC, with all rights reserved.
 1. Where is The Club Villas at Kukuiula (Parcel Club Villas)? The Club Villas at Kukuiula (Parcel Club
Villas) (referred to as the Neighborhood) is bounded on the west by the Kukuiula Golf Course (the Golf
Course) and its lakes and ninth hole and on the east by proposed home sites. To the north are other proposed home
sites and Ala Kukuiula and to the south are the Plantation House and other amenities of The Club (the Club
Amenities).
2. How many homes will be constructed in the Neighborhood? The Club Villas at Kukuiula (Parcel Club
Villas) has thirteen (13) residential lots. There is no assurance that all of the lots in the Neighborhood will be
developed with homes. Subdeveloper and Master Developer reserve the right to reduce or expand the Neighborhood
and to develop or not develop other lands of Kukuiula. Any future homes in the Neighborhood (as currently
identified or as modified) and other lands may include differing housing types, sizes and styles, including single-
family attached and detached residential homes and higher density residential condominium projects. Except as set
forth in the sales contract for a subject home, there is no assurance of when homes may be developed.
3. What are the rental opportunities for homes in The Club Villas at Kukuiula (Parcel Club Villas)?
Subdeveloper is not offering any rental or similar program with any purchase of a home in the Neighborhood. The
purchase documents contain a specific agreement by the buyer that the buyer represents and warrants that no one has
made any representation to the buyer about the investment potential of a home or the performance of any rental
program. EACH BUYER SHOULD MAKE HIS OR HER DECISION TO PURCHASE A HOME PRIMARILY
ON THE BASIS OF THE VALUE OF SUCH HOME FOR HIS OR HER PERSONAL USE, AND NOT ON THE
POSSIBLE INCOME OR INCOME TAX BENEFITS FROM RENTING THE HOME TO OTHERS. Because The
Club Villas at Kukuiula (Parcel Club Villas) has been designated a TVR1 and is eligible to participate in the Lodge
Rental Program, as these terms are discussed in the Master Disclosure Statement, an owner of a home in The Club
Villas at Kukuiula (Parcel Club Villas) may:
a. Use the home and not rent it to others (please refer to The Club Rules on access to the Club Amenities by
owners and theirs friends and family members);
b. Rent the home for a minimum of seven days using a rental company2; provided, however, such renters will
not have access to the Club Amenities even if they are willing to pay to use such facilities; or
c. Participate and submit the home to the Lodge Rental Program, subject to the requirements and restrictions
of the Lodge Rental Program. Only renters of homes in the Lodge Rental Program may use the Club
Amenities; all other renters are not eligible to use such facilities.
The Parrish Collection, LLC, the operator of the Lodge Rental Program, may be contacted for information about the
Lodge Rental Program. Participation in the Lodge Rental Program will require a home that has a standard
furnishings package.
Subdeveloper disclaims any involvement with, or endorsement of, information that might have been provided to the
Buyer concerning the potential income from the rental of the home. Rental of your home by Parrish or any other
rental manager should be considered as just one of many services available to purchasers of homes in The Club
Villas at Kukuiula.
4. Is using a landscaping company mandatory for the Neighborhood? Yes, as described in the Supplement
for The Club Villas at Kukuiula (Parcel Club Villas) (the Parcel Club Villas Supplement), the Kukuiulu
Community Association (the Association) has the right (but not the obligation) and intends to maintain the
landscaping and may also maintain the fences and pools. You will be billed a Neighborhood Assessment, payable
monthly, for such services by the Association, which is estimated to be between $900 to $1,200/month ($10,800 to
$14,400/year) for each home.

1 Please refer to the Master Disclosure Statement for a discussion on transient vacation rentals (TVRs).
2 Note that the Master Developer may require that an owner select a company that is on an approved list of rental
companies. If an owner is not a resident living on the island of Kauai, Hawaii law requires that such an owner, as
landlord, designate an agent residing on the island of Kauai to act in the owners behalf. Having a reputable agent is
important to the Master Developer.

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The Club Villas at Kukuiula (Parcel Club Villas)
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 5. The homes in the Neighborhood are along the Golf Course and near the Club Amenities. Is an owner
able to plant more landscaping or construct fencing or change the look of the Club Villa? No, as described in
the Parcel Club Villas Supplement, to allow for consistency and an overall design theme, any changes to the
landscaping or to any part of the home that is visible to any neighboring property cannot be made without the
approval of the Design Review Committee. Further, the Supplement may require that each home have a uniform type
of irrigation system and irrigation controller to allow consistent and potentially remote programming of irrigation for
the landscaping. Note that Parcel Club Villas does not have any supplement to the Design Guidelines.
6. What easements will affect the lots in the Neighborhood? Each lot will have an easement about ten (10)
feet in width running along, and in favor of, the Golf Course. The easement area may contain portions of the Golf
Course irrigation lines. Entry in connection with the maintenance of the Golf Course will be allowed within the
easement area. That is, because the Golf Course adjoins each lot, the easement will allow the golf course
maintenance crews to enter the easement area to maintain the fairway turf (for example, mowing, irrigating, and
fertilizing both the fairway and turf in the easement area) without regard to the exact boundary line of the lot. The lot
owner would be responsible for maintaining any retaining walls located in the easement area. (Please refer to the
Master Disclosure Statement for risks associated with living along the Golf Course.) Except for such ten-foot wide
easement, it is currently anticipated that Lots 1, 7, 8, 9, 12, and 13 will have no other designated easements. Lots 2 to
6 will have easements in favor of the Association for drainage swales. The swales should be maintained by the owner
(with no landscaping or improvements permitted) to drain surface and storm water from the lot to the drainage system
in the roadway. If not so maintained, the Association will have easement rights to so maintain the swales at the
owners expense. Lots 6 and 11 will each have a utility easement near the roadway in favor of the utility company.
These easements are described in the Parcel Club Villas Supplement.
7. What is the Manuhonuhonu Reservoir (the Reservoir) and how could it affect a home in the
Neighborhood? The Reservoir is located north of the Neighborhood at a higher elevation. The Reservoir is on land
owned by the Master Developer and no water is being diverted into the Reservoir and therefore, even with heavy
rains, no water should accumulate in the Reservoir. Master Developer has agreed that it will not divert water into the
Reservoir at any time in the future; provided, however, it reserves the right to decide, in its sole discretion, when and
if to commence formal proceedings to close the Reservoir. Until the Reservoir is closed, Master Developer has
agreed to indemnify and hold harmless Subdeveloper and its successors-in-interest, from any water released from the
Reservoir that causes downstream damage to the Neighborhood. The agreement applies only to the release of water
from the Reservoir that causes downstream damage to the Neighborhood and does not apply to anyone who, for any
reason, enters into the Reservoir or the area in the vicinity of the Reservoir.
8. What assessments does an owner need to pay for owning a home in the Neighborhood? There are
generally three sets of assessments that are more particularly described in the Master Disclosure Statement and its
Schedule 3. (This answer does not include fees and assessments payable to The Club for a Golf Membership if you
elect to acquire a Golf Membership or any costs associated with the Lodge Rental Program if you elect to participate
in the Lodge Rental Program.)
First: The fees and assessments payable to the Association generally for the maintenance of improvements (such
as the roads, drainage system, the Farm and Lake, and parks), and operation of the Community (such as enforcement
of covenants and approval of housing designs). An initial Capital Start-Up Fee is a one-time fee payable at closing
and monthly assessments include the Base Assessment and the Neighborhood Assessment (described above for the
landscaping, etc.).
Second: The fees and assessments payable to The Club at Kukuiula (The Club) generally for the maintenance
and operation of the Club Amenities (excluding maintenance of the Farm and Lake). An Initiation Fee is a
nonrefundable fee that is payable at closing. If an owner sells or otherwise transfers the home, the purchaser or
transferee will need to pay the Initiation Fee (at the amount then in effect) to The Club unless the sale or transfer is
exempt. Monthly assessments include the Regular Club Assessment and any special assessments. Food, beverages,
spa services, etc., are separate charges that are not included in the Regular Club Assessment.
Third: Real property taxes and the Community Facility District (CFD) Assessment payable to the County of
Kauai. The CFD assessment is a special tax that provides (through the issuance of bonds) a partial reimbursement to
Master Developer of its costs to construct certain improvements benefiting Kukuiula and the Koloa-Poipu area.

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