PROJECTED CURRENT % ANNUAL % ADOPTED % ADOPTED % ANNUAL of (based on of MONTHLY of ANNUAL change

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1 ASSOCIATION OF UNIT OWNERS OF KIHEI COMMERCIAL PLAZA (A 73-Unit Condominium Commercial Property Regime; built in ) ADOPTED BUDGET SUMMARY - Page 1 11/8/ sh CURRENT % ANNUAL % ADOPTED % ADOPTED % ANNUAL of (based on of MONTHLY of ANNUAL change BUDGET Total 8 month actual) Total BUDGET Total BUDGET from prev. I. REVENUES: MEMBER INCOME A. Maintenance Fees $ 303, % $ 303, % $ 24, % $ 295, % B. Capital Reserves * 156, % 156, % 13, % 156, % C. Delinquent Charges % 4, % % % Total Member Income $ 459, % $ 463, % $ 37, % $ 451, % NON-MEMBER INCOME D. Interest Income $ % $ % $ % $ % E. Capital Reserve Interest % % % % F. Lease-Storage/Other % % % % G. Misc Income % % % - n/a Total Non-Member Income $ 1, % $ 1, % $ % $ 1, % Total Revenues $ 460, % $ 465, % $ 37, % $ 453, % II. OPERATING EXPENSES: A. Administration Expense $ 3, % $ 4, % $ % $ 3, % C. Insurance 30, % 30, % 2, % 31, % D. Professional Expenses 38, % 36, % 3, % 39, % E. Repairs & Maintenance 135, % 148, % 11, % 143, % F. Tax Expenses % % % % G. Utilities 77, % 59, % 4, % 59, % H. Reserves & Other Expenses 175, % 166, % 14, % 175, % Total Operating Expenses $ 460, % $ 445, % $ 37, % $ 453, % EXCESS (DEFICIT) OF REVENUES OVER EXPENSES $ % $ 19, % 0.00% $ - III. OTHER SOURCES AND USES OF CASH A. Rollover IRS R.R (Est before taxes) $ - ADJUSTED EXCESS (DEFICIT) $ 0 $ 19,447 Prepared By Destination Maui Inc., Approved by the Board of Directors on November 8, This budget has been prepared on the accrual basis of accounting. *See the Capital Reserve Fund Schedule.

2 Association of Unit Owners of Kihei Commercial Plaza Page 2 I. REVENUES: Maintenance Fees (M/F)have been calculated, as follows: NO. COMMON UNITS INTEREST % OLD M/F INCREASE NEW M/F % $ $8.18 $ % % % % % % % % A. Maintenance Fees $25,257 -$629 $24, % Capital Reserve Fund: See Capital Reserve Fund (CRF) Schedule for details: NO. COMMON UNITS INTEREST % OLD CRF INCREASE NEW CRF % $ $0.00 $ % $ % $ % $ % $ % $ % $ % $ % $ B. Capital Reserves * $13,000 $0 $13, % TOTAL COUPON Actual Coupon Amounts Combining the M/F & CRF: % NO. COMMON OLD NEW change UNITS INTEREST % COUPON INCREASE COUPON from prev % $ $8.18 $ % % % % % % % % % % % % % % % % % 73 $38,257 -$629 $37, %

3 Page C. Delinquent Charges Based on a rate of 1% interest on outstanding balances 430 D. Interest Income $ 300 $ 4,713 $ 25 $ 300 Interest income oncapital Reserves is budgeted in the Statutory Reserve Fund. $ 120 $ 54 $ 10 $ % 0.00% 431 E. Capital Reserve Interest Interest earned on the Capital Reserves Accounts $ 696 $ 646 $ 58 $ % 420 F. Lease-Storage/Other Lease charged to owner of unit #112 for storage of in the common area. $ 660 $ 678 $ 55 $ % 499 G. Misc Income Funds collected from House rule fines II. OPERATING EXPENSES A. Administration Expense Bank Fees None budgeted for this year n/a Dues and Subscriptions Condo Council $50 annual membership fee for up to 3 people; seminars by Condo Council % Meetings Costs incurred for Annual Owners' Meeting and Board Meetings per year, including supplies, food, and secretarial services. 1,500 1, , % Office & Administrative For costs incurred in administering the affairs of the Association, including such items as postage, supplies, photocopies, faxes, office supplies 2,004 2, , % Total Administration Expenses $ 3,564 $ 4,287 $ 330 $ 3, % C. Insurance Agent -Della Nakamoto at Atlas Insurance phone # ext Fidelity Bond $100,000 limit; $1,000 deductible $ 492 $ 459 $ 41 $ % Blanket/Property Property building replacement cost is $14,169,771; deductible (all other perils excluding hurricane) is $5,000; Hurricane Deductible (5% of the building value) is $532,200. Policy expires 1/19/19, A 3% increase has been budgeted for the upcoming year. 25,848 25,756 2,185 26, % Comprehensive General Liability General Aggregate is $2,000,000; Products and completed operations aggregate $2,000,000; Personal & Advertising Injury is $1,000,000; Each occurrence is $1,000,000. Fire damage any one fire $100,000; Medical expense (any one person) is $5,000; and Hired/non-owned automobiles (per occurrence) is $1,000,000. Included in Blanket property premium n/a Directors and Officers Liability Each claim $1,000,000; General Aggregate $1,000,000; and deductible is $1,000. Policy expires 5/19. A 7% increase is budgeted for the upcoming year. 1,968 1, , % Umbrella Liability Commercial umbrella is $10,000,000; Liability Aggregate limit $10,000,000; Products/completed operations $10,000,000. Retained limit -0-. Policy expires 1/19, No increase has been budgeted. 2,400 2, , % Interest Interest expense incurred due to financing of the Association's insurance policies. None budgeted n/a Total Insurance $ 30,708 $ 30,546 $ 2,601 $ 31, % 3

4 Page 4 D. Professional Expenses Management Fees For the property and fiscal management services provided by Destination Maui, Inc. at $2,550 per month plus Hawaii General Excise Tax. An increase of $75/mo effective January 2019 has been budgeted. $ 31,824 $ 31,824 $ 2,730 $ 32, % Audit Fees State law requires an annual audit and surprise cash verification. Also includes the preparation of the annual income tax returns. The audit is currently performed by Roen Hirose (no increase) 3,396 3, , % Legal For attorney fees incurred in conjunction with legal matters affecting the Association. 2, , % 4. Reserve Study None budgeted, Reserve study completed for the year n/a Year-End Accounting For closing of the Association's books and preparation of work papers for the annual audit % Total Professional Fees $ 38,652 $ 36,234 $ 3,299 $ 39,588 E. Repairs & Maintenance R/M Common Area Maintenance Budgeted figures includes services from: Ben Cruz for common area service, meter reading, repairs, etc. Advance Landscape and Maintenance for removal of rubbish and hauling. $ 7,500 $ 2,122 $ 208 $ 2, % R/M Buildings For the repairs and routine maintenance of the common element portions of the buildings, including minor carpentry, plumbing, exterior lighting, painting, roof repairs, etc. Budgeted figure includes for repairs/replacement of Garage doors (reclassified from Reserve study) 7,500 7, , % R/M Electrical For lighting controllers moved from Reserves to operating per Study. Budgeted figure is for materials and labor. 1,500 3, , % R/M Fire Monitoring Security for each building; No increase has been budgeted per Vendor 2,016 2, , % R/M Fire Equipment Maui Fire control annual testing bldgs includs GET; Dept of Water Fire protection at $924/annually. 3,096 3, , % R/M Janitorial Vendor Benjamin Cruz. General cleaning of common areas 18,600 25,538 1,913 22, % 4

5 Page 5 E. Repairs & Maintenance - cont R/M Grounds & Irrigation Supplies for landscape plants,repair of drip lines, etc. 4, , % R/M Grounds Contractor Chucky's Landscapes; 2019 monthly dictated by board 22,680 21,870 1,500 18, % R/M Pest Control Exterior spray & rodent baiting on base perimeter; Zaks fumigation at $416.66/Qtrly; includes GET. No increase has been budgeted per vendor. Renews annually, 60 day written notice 1,668 1, , % R/M Roadway-KCC Dues Kihei Commercial Roadway Association dues monthly including GET 8,040 8, , % R/M Refuse Collection Aloha Waste Systems; Monthly Service include 3x/week pickup of 8 3-yard bins ($4, GET); 2x/week 2 3- yard bins recycling ($ GET); total $4,947 / month + extra pickups when needed. An increase of 7% has been bugeted effective July ,112 61,013 5,293 63, % R/M Security Services Sercurity Services are provided by MEPSS at $609.27/mo includes GET. No increase has been budgeted. 7,308 7, , % R/M Tree Trimming Budgeted figure is for Tree Trimming 1 time annually. 3,000 3, , % Towing Services Allowance for towing one car per year , % Total Repairs & Maintenance $ 135,120 $ 148,251 $ 11,942 $ 143, % F. Tax Expenses Hawaii General Excise Tax Based on 4% of the total non-exempt function income, plus interest earned on the Replacement Reserve Fund. $ 72 $ 277 $ 6 $ % Total Tax Expenses $ 72 $ 277 $ 6 $ % G. Utilities Electricity Total of 4 meters through Maui Electric. Usage for the period September 2017 to August totaled 40,376 KWH, or an average of 3, KWH/month, at a average cost of $1,230.19/month. A 3% increase is budgeted for the upcoming year. 13,044 15,346 1,267 15, % Sewer Fee Maui County assesses a sewer connection fee of $18.28 per unit per month, plus $6.09 / th gals. Average monthly charges between Sept 2017 and August was $1, Adopted Monthly includes 3% increase in July ,616 21,961 1,834 22, % Util. Telephone Fire Alarm 2 lines: $45.33; $42.75; 1,056 1, , % Water Usage from Sept to August totaled 3,462 thousand gallons, or an average of thousand gallons/month at an average of $2, / month. Effective 7/1/16 the County of Maui charges a monthly base charge of $137 each for four accounts (totalling $548) plus: $2.00 per thousand gals. for the first 5,000 gals; $3.80 per thousand gals for the next 10,000 gals; and $5.70 per thousand gals, thereafter. Adopted Monthly includes 3% increase in July ,444 24,741 2,077 24, % Utilities Water - contra Monthly water billing payments from units 101, 120, 316, and 405 (3,638) (300) (3,600) n/a Total Utilities $ 77,160 $ 59,484 $ 4,966 $ 59, % 5

6 Page 6 H. Reserves & Other Expenses 1. Due to Reserves Loan from Reserves to Checking account of $93,000 over a 10 year (60 month period; ) $ 9,300 $ 775 $ 9, % Capital Reserves Hawaii State Law requires that each Homeowner's Association provide for current funding of future replacement costs. See attached Statutory Reserve Analysis for details. 146, ,400 12, , % Capital Reserves - Elevator Hawaii State Law requires that each Homeowner's Association provide for current funding of future replacement costs. See attached Capital Reserve Analysis for details. 9,600 9, , % 934 a. Util. Telephone Elevator 2 Lines: # $85.50; and # $ ,052 2, , % 951 b. R/M - Elevator Schindler Elevator Corporation; Annual contract at $ Estimated 5% increase for ; 90 days written notice 7,536 7, , % Capital Replacement Reserve Fund Interest See attached Statutory Replacement Reserve Funding Schedule % Total Reserves & Other Expenses $ 175,584 $ 166,645 $ 14,632 $ 175,584 III. OTHER SOURCES AND USES OF CASH A. Rollover IRS R.R (Est before taxes) Estimate of Excess Membership Income Rollover pursuant to IRS Revenue Ruling # RR $ - 6