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The following Rules and Regulations have been established by your Board of Directors pursuant to the Declaration of Conditions, Covenants and Restrictions (“Declaration”) for Owners of the Pono Kai Interval Owners Association at the Pono Kai Resort and were adopted by your Board of Directors as amended on April 12, 2002 and supersede any previously distributed Rules and Regulations. These Rules and Regulations supplement your Declaration and do not change your obligations as an Owner under either the Declaration or other Governing Instruments. The Board of Directors shall have the sole and exclusive authority to amend these Rules and Regulations. Failure to comply with the Rules and Regulations may result in the suspension of your rights and privileges as an Owner.

REGULAR USE RESERVATIONS

1.1 WHEN TO MAKE YOUR RESERVATION:

Reservation of use periods may be made by Owners of the Pono Kai Interval Owners Association up to twelve (12) months in advance of desired use, and shall be made no less than (14) days prior to the beginning of the desired use period.

1.2 HOW TO MAKE A RESERVATION:

ALL Owners must make a reservation in order to use a unit. For all Owner Reservations, including PSE exchanges, Bonus Time and Holiday reservations, please call (877) 976-6652 between the hours of 8:00 AM and 9:00 PM EST, Monday through Friday. All requests will be considered on a first-come, first-serve basis, and will be confirmed by the Reservations Department on a space available basis. Requests will be rotated as follows:
1. In person
2. By telephone
3. In writing/By facsimile/E-mail

All reservation requests shall include a first and second choice of use periods, intended arrival dates, intended departures dates and the number of adults and children who will be occupying the particular unit. Requests must be made in person, by telephone, in writing, by facsimile or by email, and are subject to confirmation by the Managing Agent.

1.3 LIMITATIONS ON RESERVATIONS:

For each regular timeshare interval owned, you are entitled to reserve a maximum of seven (7) consecutive nights in your season and unit type in each calendar year (comprised of the weeks commencing on either a Wednesday or a Saturday from January 1 through December 31).

1.4 SPLIT YOUR USE WEEK:

As a member of the Preferred Status Exchange, you may “split” the use of your vacation week. Please refer to your resort exchange directory for split restrictions of that program.

1.5 UNIT TYPE/SEASON REQUEST:

You will be assigned a Unit of the same type and in the same Season that you own unless you request an upgrade. As a member of the Preferred Status Exchange, you may upgrade your unit type and/or season. Please refer to your resort exchange directory for upgrade restrictions of that program.

1.6 CARRY-OVER:

As a member of the Preferred Status Exchange, you may carry-over your week. Please refer to the resort exchange directory for carry-over restrictions of that program.

1.7 CANCELLATION:

You may cancel or change your reserved use period up to 91 days prior to check-in, but will be charged a cancellation fee. If you fail to cancel your reservation at least 91 days prior to check-in time, you shall be considered to have used the entire use period for which the reservation was made. The Association will make every effort, but cannot guarantee that you will be able to reserve another use period in your current calendar year.

1.8 CONFIRMATION OF RESERVATION REQUESTS:

Reservation requests must be confirmed by the Reservations Department before being valid. If neither of the two (2) choices requested by an Owner can be confirmed due to unavailability, such requesting Owner shall be so notified, and will be asked to contact the Reservations Department, either by telephone, or in writing, for information concerning available use periods. Confirmations will be given by the Reservations Department to Owners by mail, or when time is limited, by telephone, fax or email.

You may be prevented from securing a confirmed reservation if a unit of the same type as yours is not available for use at the time sought because that time was previously reserved for regular use by another Owner.

Your reservation request will not be confirmed, nor will occupancy or an assigned unit be permitted, if you are delinquent in payment of any amounts owed to the Association or if your use rights have been suspended by the Board of Directors.

BONUS USE RESERVATIONS

Subject to availability, an Owner may be entitled to occupy a unit of any unit type or season during one or more additional time periods, for not less than two (2) nights, as Bonus Use. Bonus Use may be available if time has not been otherwise reserved. Reserved Bonus Time cannot be rented by an Owner to a guest.

2.1 WHEN TO MAKE BONUS RESERVATIONS:

Bonus Use reservation requests will be considered if received 60 days or less in advance of the first night of the reserved visit.

2.2 HOW TO RESERVE BONUS USE:

Reservations for Bonus Use shall be on a first-reserved, first-served basis. You may reserve Bonus Use for a minimum of two (2) nights, at a nightly rate established by your Board of Directors. Follow the same procedures for making reservations as described in 1.2 under Regular Use Reservations.

2.3 BONUS USE CONFIRMATION:

Bonus Use reservation requests are confirmed on a first-come, first-served basis. Bonus Use reservation requests will be confirmed by the Reservations Department by telephone. No Bonus Use reservation request will be honored unless they have been confirmed by the Reservations Department.

Your Bonus Use reservation will not be confirmed if you are delinquent in payment of any amounts owed to the Association, or if your use rights have been suspended by the Board of Directors.

2.4 BONUS USE LIMITS:

Subject to availability, Bonus Use reservations may be made as often as you like for any days of the week in any unit type or season of the year. In addition, no less than two (2) nights may comprise a Bonus Use reservation.

Your Bonus Use reservation will not be confirmed if you are delinquent in payment of any amounts owed to the Association, or if your use rights have been suspended by the Board of Directors.

2.5 EFFECTS OF BONUS USE ON OTHER ENTITLEMENT:

Bonus Use does not affect any other entitlement you may have to occupy a unit, except that Bonus Time cannot be rented by an Owner to a guest.

2.6 BONUS USE REVENUE:

The Association will deposit revenues generated from Bonus Use into its general account to help defray costs of the Association.

2.7 CANCELLATION PENALTY:

If you cancel or change your Bonus Use reservation, you will be charged a cancellation fee. If you cancel your Bonus Use reservation less than forty-eight (48) hours prior to check-in, or you do not check-in for your reservation within forty-eight (48) hours of your arrival time, you will not only be charged the cancellation fee, but also the reserved unit Bonus Time Rate for the Pono Kai IOA units for the number of nights reserved or two nights, whichever is less.

OTHER GENERAL RULES

4.1 CHECK-IN/CHECK-OUT PROCEDURES:

Check-In Time is 4:00 PM. Check-Out Time is 10:00 AM.

The Declaration provides that if at check-in time you are not current in the payment of your assessments, you will not be permitted to occupy your assigned unit until your assessments are brought current.

Owners will be required to present identification in addition to a major credit card or cash deposit upon check-in. To keep costs down, please turn off all lights, television sets, radios and other appliances, wash all dirty dishes, fold down all beds used during your stay, lock the door to your unit upon departure, and leave your room key and other items checked out to your party at the front desk upon check-out.

On a space available basis, you may arrange for a late Check-Out by making such arrangements in advance, and paying a nominal fee at that time.

4.2 OCCUPANCY RESTRICTIONS:

Unit: You may be denied occupancy of your unit if at check-in time you are delinquent in any amounts owned to the Association, or if your use rights have been suspended by your Board of Directors.

Limit: The maximum allowable occupancy for a Mini-suite unit is four (4) persons, for a one-bedroom Imperial Suite unit four (4) persons, for a one-bedroom with loft Imperial Suite is six (6) persons, for a two bedroom Presidential Suite unit is six (6) persons, and for a two bedroom with loft unit is eight (8) persons.

4.3 DAMAGES AND LOSSES:

At check-in you will be given an inventory list for your review and approval. It should be completed and returned to the front desk as soon as possible after check-in. When you or your guests check-out, any damage or loss not indicated on your inventory list will be billed directly to you. A major credit card or cash deposit is required at check-in for this purpose. A copy of the manufacturer’s instructions for operation of appliances will be placed in each unit. Appliances must be used in accordance with these instructions.

4.4 PROJECT PERSONNEL:

Personnel for the Pono Kai IOA units at the Pono Kai Resort including front desk, housekeeping and maintenance staffs, are employees of the Management Company and are under the sole direction of the Resort General Manager. Please direct special requests for services and assistance through the front desk.

4.5 EXCHANGE:

If you are a member of Interval International (II) and/or Resort Condominiums International (RCI) and you desire to exchange a use period, please consult your II and/or RCI directory and membership materials for trading rules which govern reservation exchange requests. Representatives are available in the Reservations Department for your convenience. If you are a member of the Preferred Status Exchange Plus exchange, please consult the Preferred Status Plus Directory for assistance with any exchange.

4.6 PERSONAL ITEMS/STORAGE:

You are totally responsible for personal items brought into the Project. Personal belongings cannot and shall not be stored on the premises other than in your unit. No storage is permitted in the parking area. Neither the Resort General Manager nor the Association are responsible for any personal items left by you or your guests at check-out. Items not claimed will be disposed of after thirty (30) days.

4.7 GUESTS (PERMITTED USERS):

You may permit another person to occupy your assigned unit during your use period without charge by the Association. You may permit another person to occupy your assigned unit during a use period reserved as Bonus Use, but you may not rent such use period. Renting of Bonus Time is strictly prohibited. Owners found to have done so are in violation of these rules and regulations and may lose Bonus Time privileges. You may invite others to share occupancy of your assigned unit during your use period(s), provided that the maximum allowable occupancy limit for the interval unit is not exceeded. The Resort General Manager will not give access to any interval unit to any such permitted user without permission from the Owner in whose name there is a confirmed reservation. If you intend for a person other than yourself to use your use period or to accompany you during your use period, you must inform the Reservations Department not less than fourteen (14) days prior to the first day of your use period. Please indicate the name and address of such person(s). When checking in, your guests will be asked to show proof of identification, sign a registration card and present a major credit card or cash deposit.

4.8 AGE RESTRICTIONS:

You may permit persons under 18 years of age to occupy your unit only if he/she/they are accompanied by a parent or adult age 21 years or older. (Read all other sections thoroughly for additional age restrictions.)

4.9 HOUSEKEEPING:

The six-hour period between check-out time and check-in time is reserved exclusively for cleaning, inventory, repair and maintenance of units by housekeeping and maintenance staffs, so that upon your arrival, you will find your unit fresh and clean. Towel and trash service is provided as is a light cleaning with fresh bed linen mid-week. Thereafter, additional housekeeping services are available by contacting the front desk. There will be a charge for additional housekeeping services, which must be paid prior to departure.

4.10 PASSKEY:

Owners are to be aware that the Manager is provided with a passkey to all units. At the Manager’s reasonable discretion, the Manager or his employees or agents may enter any unit. In such instances, the Manager shall notify the occupant as soon as is reasonably possible prior to such entry, and of the reason for such entry.

4.11 PARKING:

Parking by Owners, their family, guests, and invitees, will be limited to one parking space per timeshare unit reserved at the Resort. Owners, their families, guests, and invitees bringing more than one (1) vehicle to the Resort should make advance parking arrangements. No vehicle of any type requiring more than one parking space may be operated, parked, stored or brought onto the property. Please keep in mind that parking in unauthorized areas on or off the property may result in your vehicle being towed away. Limited additional parking may be available on a first-call, first-reserved basis only if arranged in advance (prior to arrival) through the front desk.

Parking is permitted for Owners and their guests only, with no assigned spaces. No major repairs to automobiles or motorcycles is permitted on the premises. No racing of motors, etc. is permitted. No vehicle belonging to an Owner or guest shall be parked in such manner as to impede or prevent ready access to any entrance or to any exit from the buildings by another vehicle.

The Association is not responsible for lost/stolen/damaged vehicles or other property of Owners and/or guests. Damage to cars and other objects or common areas shall be the responsibility of the person causing the damage.

Vehicles shall travel at 5 mile per hour speed. Drivers are expected to observe traffic signs for the safety of all. Drivers may not leave cars unattended in loading zones, and cars shall be promptly removed when the loading or unloading is completed.

4.12 LAUNDRY FACILITIES:

Coin-operated washers and dryers are centrally located at the resort. They are available for your use and convenience at a minimal charge.

4.13 PETS:

Absolutely no pets shall be allowed in the units, common, or recreational areas ever.

4.14 APPEARANCE OF PROJECT:

No sunshade awnings or other similar devices may be used on any balcony or patio. Draping of any articles – including but not limited to towels, swim suits, etc. – in the balcony areas or otherwise is not permitted.

4.15 SWIMMING POOL RULES:

The pool and surrounding areas are for the exclusive use of Owners and their guests. Hours are posted. Age restrictions are posted. Children will not be allowed in the pool unless accompanied by an adult responsible for such child. Parents or guardians are completely responsible for their children or wards and shall not permit them to enter the pool areas regardless of age, if they are not competent swimmers.

Pool rules are posted within the pool area. Any person violating any of the pool rules will be refused further use of the pool. Pool users shall dry off prior to entering the lobby or elevators. Pool towels are provided at Housekeeping. Please do not use room towels at the pool.

No flotation devices or toys are allowed in the pools or spas. Glass or other breakable containers shall not be brought into the pool area. All personal belongings such as towels, sunglasses, books, etc. shall be removed upon leaving the pool area.

Swimming is not allowed in other than proper swimming apparel. Diapers are not allowed in either the pool or spa. All persons using oils, lotions, etc. should protect the furniture and deck area. No removal of pool furniture is permitted.

Owners and their guests shall use the swimming pool at their own risk. No lifeguard is on duty, nor will the Manager, its employees, or agents supervise or watch over the pool in any manner.

Radios, tape players, etc. shall be tuned for individual listening and shall not be played at a volume which interferes with the enjoyment of others.

4.16 USE OF SPA:

The spa is intended to be an adult amenity. Hours of rules are posted and must be obeyed. (Per the laws of the state’s Health Department, due to its potential hazard to health, only persons fourteen (14) years of age or older, and four (4) feet or taller may use the spa, and any person between fourteen (14) and eighteen (18) years of age must be accompanied by a parent or an adult guardian when using the spa.) Other age restrictions may apply at the Pono Kai Resort, and must be obeyed if posted.

4.17 BOARD OF HEALTH REQUIREMENTS:

All babies regardless, and all persons known to be or suspected of being afflicted with an infectious disease, suffering from a cough, cold or sores or wearing bandaids or bandages, shall be excluded from bathing in the pool or spas. Spitting, spouting of water, blowing the nose in the swimming pool shall be prohibited.

4.18 TENNIS COURTS:

The Tennis Courts are open daily. Court times must be reserved at the Front Desk. Equipment is available at the Front Desk. Rules are posted and must be obeyed.

4.19 SOLICITING:

No commercial soliciting is permitted, whether within a Timeshare Unit or the common area, at any time by any Owner, guests, exchange user, or member of the general public except for Association-authorized efforts to market timeshare intervals.

4.20 FRONT DESK:

The front desk is open 24 hours per day, seven (7) days a week.

4.21 TELEPHONE CALLS:

Each unit is furnished with a private telephone which accesses direct lines via the front desk switchboard. Owners and permitted users are responsible for all charges for telephone calls and are required to pay same prior to check-out, if the call has not been charged to a home or business phone, telephone calling card, or placed collect. All unpaid telephone charges of your permitted user are the Owners’ responsibility. Further information on telephone operation is available through the front desk staff and Welcome Packet materials.

4.22 PESONAL CHARGES:

A major credit card or cash deposit is required at check-in. In addition, the Association will charge a minimum of $5.00 for any personal charges required to be billed to an Owner after check-out. Each Owner shall be responsible for prompt payment of charges incurred by such Owner, his family, and guests during the use period, including but not limited to long distance telephone calls, additional housekeeping services, or other items. Non-payment of such personal charges may result in the suspension of such Owner’s use privileges.

4.23 RESTRICTED ACTIVITIES:

Dangerous or unlawful substances may not be stored, introduced or used within the project. All unlawful, obnoxious or offensive activities are prohibited in any unit or other area of the project. You are requested to control noise and activities so that you do not disturb other occupants. You are requested to monitor activity of your children, and your guests’ children, so they do not disturb others. Children are prohibited from playing in parking areas, the lobby and any other non-recreational common areas.

No Owner shall make structural changes, reorganize or remove the common furnishings, wall hangings, floor coverings, or decorations of any kind within the units or common areas.

No soliciting of goods and services, or religious or political activities shall be permitted on the premises unless approved by the Board of Directors.

No personal items or equipment (surf boards, water skis, bicycles, etc.) shall be left or allowed to stand on any part of the premises, other than within the confines of a unit or any storage area set aside or assigned for such purpose.

Skateboards, bicycles and related vehicles shall not be operated on walkways or sidewalks.

Furniture, furnishings and equipment of the common elements have been provided for the safety, comfort and convenience of all Owners and guests and shall not be altered, extended, removed or transferred to others.

Each Owner/guest shall be held personally responsible for any damage or destruction to any common element caused by themselves, their children, their guests, or any occupants of their unit.

All noises from whatever source shall be controlled so same shall not disturb or annoy other Owners/guests. All Owners/guests shall maintain quiet hours as posted and noticed.

There is to be NO shooting of fireworks of any type at any time in, in front of, or around the building or common areas.

Beach users shall shower to remove sand from feet before entering the lobby or elevators.

4.24 REMEDIES FOR FAILURE TO VACATE:

Please refer to the Covenants, Conditions and Restrictions of the Pono Kai Interval Owners Association.

4.25 GENERAL:

There is a charge for replacement of lost unit keys, as determined by the Board of Directors. There will be a charge for any damage resulting from misuse of resort fixtures, furnishings, etc. as determined by the Resort Manager.

Complaints and suggestions regarding the resort shall be made in writing to the Board of Directors or the Managing Agent.

Each Owner/guest is requested to register with the Resort Manager, and to supply names of all expected unit occupants, their address and telephone number, Owner number and vehicle information, and will be required to leave some form of deposit, i.e., credit card imprint, cash deposit, etc. with the front desk.

4.26 ENFORCEMENT OF THE GOVERNING INSTRUMENTS:

The Board of Directors and each Owner expect that all Owners and their permitted users will comply with the requirements set forth in each of the Governing Instruments. To assist the Board and the Owners in assuring compliance with the provisions of these documents, the Board has delegated certain enforcement responsibilities to the Manager. While at the Pono Kai Resort, each Owner and other occupants are expected to comply with the directions and instructions of the Manager. If the Manager advises you that your conduct violates any of the Governing Instruments, you should cease immediately and refrain from committing the offending conduct.

The failure by you or your permitted user to comply with the Manger’s instructions or directions may result in the imposition of a Personal Charge per violation, plus all incidental expenses incurred to bring you into compliance. Payment of the Personal charge is due within fifteen (15) days following your receipt of a written statement from the Board of Manager. If payment is not received, the Personal Charge becomes a Special Assessment and alien may be recorded against your interval.

You may contest an alleged violation of the Governing Instruments and the imposition of a Personal Charge by notifying the Board of Directors in writing prior to the next regularly scheduled meeting of the Board. If the Board, after consideration, rules in your favor, the violation will be dismissed, the Personal Charge will be nullified and any amount paid by you to the Association with respect to the Personal Charge will be refunded to you within fifteen (15) days following the Board’s decision.

4.27 EMERGENCIES:

In case of an emergency, contact the front desk at (808) 822-9831. If front desk personnel are unavailable at that time, dial 911 to contact the appropriate Policy or Fire/Paramedic authority.