OF

4970 Kahekili HwyWailuku, HI 96793

PREPARED FOR

Allan Mendes3530 Kahekili HwyWailuku Hi., 96793

AS OF

07/25/2013

PREPARED BY

• •••• VIl ••••••••• ..., •• V •• ~ - ------- ------.--- '~ •••••• ,VVV - - - - --.--------- ----01' ." ---- ._, - _ - __

Occupant Owner Appraiser Norman C. Franco Instructionsto AppraiserDetermine fair market value for estateplanning purposes. '

~ Water I Private -1- Public I -100,00(j Private I I No WaterFencing I Fencing I None I +10,00q Fencing I I None +10,060

EmploymentStabilityConvenienceto EmploymentConvenienceto ShoppingConvenienceto SchoolsAdequacyof PublicTransportationRecreationalFacilitiesAdequacyof UtilitiesPropertyof CompatibilityProtectionfrom DetrimentalConditionsPoliceandFireProtectionGeneralAppearanceof PropertiesAppealto Market

GoodAvg. Fair Poor

DD~D~DDD~DDD~DDDDDD~D~DDD~DDDD~DDD~DD~DDD~DDD~DD

Location 0 Urban 0Suburban []] RuralBuiltUp 0 Over75% 025% to 75% ~ Under25%GrowthRate 0 FullyDev.0 Rapid 0 Steady ~ SlowPropertyValues 0 Increasing ~ Stable 0 DecliningDemand/Supply 0 Shortage ~ In Balance 0 OversupplyMarketingTime 0 Under3 Mos, 0 3-6 Mos. ~ Over6 Mos.PresentLandUse 50 %1 Family ~ %2-4Family ~ %Apts_O_% Condo_O_% Commercial

o %Industrial 45 %Vacant %• ChangeIn PresentLandUse [KfNot Likely --DLi --ke-Iy-{*-)----O---T-ak-in-g-P-Ia-ce-{-·)

(*) From To _PredominateOccupancy ~ Owner DTenant % Vacant

~ SingleFamilyPriceRange $ 373,000 to $ 1,750,000 PredominantValue$ 700,000SingleFamilyAge 10 yrs to ~ yrs. PredominantAge 12-15 yrs

Commentsincludingthosefactors,favorableor unfavorable,affectingmarketability(e.g.publicparks,schools,view,noise): Bordered North by Ocean, West byKahakaloa, East by Wailuku, South Launiupoko. 5 minutes to outskirts of Wailuku and another 5 minutes to major shopping,business and Government. Property's highest and best use has many possiblities: living area Improvements, as an agriculturalpursuit (ranch, farming, Ilvestock), building a wharf from the rocky beach, subdividing (if reservoir is built).DimensionsSee Site Map for Area Calculation = 42.75 acres 0 ComerLotZoningClassificationAgriculture " PresentImprovements ~ do 0 do not conformto zoningregulationsHighestandbestuseU Presentuse []] Other(specify)As improved or utilized as an agricultural pursuit.

Public Other(Describe) OFFSITEIMPROVEMENTS Topo Steeply SlopingElec. ~ County StreetAccess ~ Public 0 Private Size :;:T;-yp-;i;-'-Ca~';-;f;-o-rt7;h"'7is-=-a-re-a----------------I

Gas 0 None Surface Paved Asphalt Shape IrregularWater ~ County Maintenance []] Public0Private View --=O:-c-e=.a-n-a-n-d-=-=C-e-n-tra--:-,---------··--------~

San.SewerD None StormSewer 0 Curb/Gutter Drainage Appears AdequateoUndergroundElect.& Tel. Sidewalk StreetLi hts Is the prope-rty-'--'-Io-c-at-ed-i-n-a-H'--UO-id-en-ti-fie-d-S-pe-c-ia-IF-Io-o-d-H-az-a-rd-A-re-a-?--.~==x;;=;-No-;D;==.-y-e-ls

Comments(favorableor unfavorableincludinganyapparentadverseeasements,encroachmentsor otheradverseconditions): No noticed easements,encroachments,slide areas or illegal nonconforming zoning use.

Theundersignedhas recitedthreerecentsalesof propertiesmostsimilarandproximateto subjectandhasconsideredthese in the marketanalysis.Thedescriptionincludesa dollaradjustmentreflectingmarketreactionto thoseitemsof Significantvariationbetweenthe subjectandcomparableproperties.If a significantitemin the comparable

propertyis superiorto or morefavorablethanthe subjectproperty,a minus(-) adjustmentis madethus reducingthe indicatedvalueof subject;if a Significantitemin thecomoarableis inferiorto or lessfavorablethanthe subiectproperty,a plus (+) adjustmentis madethus increasinq the indicatedvalueof the subiect.

SUBJECTPROPERTYI COMPARABLENO.1 I COMPARABLENO.2 I COMPARABLENO.3

-+100,000

Address 4970 Kahekili Hwy I 0 Waiehu I Hana Hwy I 814 Honoapiilani HwyWailuku, HI 96793 Wailuku, Hi 96793 Haiku,.H1 96708 Lahaina, HI 96761

+1,659,840

Proximityto Subiect II I 2.55 miles S I 29.33 miles SE I 12.39 miles SWS~lesPrice I$ N/ A I -, ~"l $ 8,000,0001 -I$ 1,000,0001 - ~ -1$ 1,050,000Price/ $ $ $ . $

9 DataSource I 2-3-1-1-51 I TMK 2-3-3-2-31 I MBRMLS#356808/2-2-7-4-441 TMK 2-4-8-3-90

iIDateof Saleand DESCRIPTION DESCRIPTION DESCRIPTION DESCRIPTION::ITimeAdiustment N/A 3/16/2012 6/28/2013 12/7/2012~ Location ! Wailuku Oceanfront! Wailuku not OF ! +400,00q Haiku Nr Ocnfront! +50,00(j Lahaina across OFiilSiteNiew I 42.75 acres I 240.09 acres 1-5,208,00q 3 - 1+1,945,1221 6.27 acres

~'" Zoning I Ag I Ag I I Ag I I Ag+100,000

Terrain I Sloping I Sloping I I Sloping I I Sloping

Salesor Financing I Walk to Beach I None I I None I I NoneConcessions N/ A N/ A N/ A N/ ANetAdi.(Total) : ~--. ----- I iPlusi X iMinus $ -4,898,000 rxlplusf 1Minus $ 1,995,i2~lX1PlunMinus $ 1,869,840

IndicatedValue I Net=-61 % Net=200% Net=178%of Subiect I . _ GroS;=-71 %--- $ 3,102,00C Gross=200% - $ 2,995,122 Gross=178% - $ 2,919,84QCommentson MarketData Sales derived from similar large parcels whenever pOSSible, chosen over smaller unless near of or 'oceanfront, then any size chosen. Haiku is deemed the most similar competing market compared to Kahakuloa, with goodaccessibility, similar terrain, agriculture use or zoning and remote rural look.CommentsandConditionsof Appraisal: Fair market value based on sales within the past 2 years .. The value for site area adjustments wasbased primarily on comp#4 which had the most similar site size. Subject is currently listed at below market value $2,250,000

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.•..•. ,.., ..,"' .... ,..,Lender/Client Allan Mendes Address 3530 Kahekili Hwy, Wailuku Hi., 96793

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Theundersignedhasrecitedthreerecentsalesof propertiesmostsimilarandproximateto subjectandhasconsideredthese in the marketanalysis.Thedescriptionincludesa dollaradjustmentreflectingmarketreactionto thoseitemsof significantvariationbetweenthe subjectandcomparableproperties.If a significantitem in thecomparablepropertyis superiorto or morefavorablethanthe subjectproperty,a minus(-) adjustmentis madethus reducingthe indicatedvalueof subject;if a significantitem in thecomparableis inferiorto or lessfavorablethanthe subjectproperty,a plus (+) adjustmentis madethus increasingthe indicatedvalueof the subject.

SUBJECTPROPERTY COMPARABLENO. 4 COMPARABLENO. 5 COMPARABLENO. 6Address 4970 Kahekili Hwy Piilani Hwy Kai Poi St 3040 Kahekili Hwy

Wailuku, HI 96793 Kaupo, HI Haiku, HI 96708 Wailuku, HI 96793-34.89 miles SE 15.92 miles E 1.67 milesSEProximitvto Subiect

SalesPrice $ N/A 1$ 4,000,000 1$ 2,995,000 "1$ 5,500,000. Price $ 1$ 1$ 1$~ DataSource 2-3-1-1-51 TMK2-1-8-1-1 MBRMLS#355865/2-2-8-3-67 MBRMLS#356671/ 2-3-2-1-2

! Dateof Saleand DESCRIPTION DESCRIPTION AdW!lt'lnent DESCRIPTION Adit1irfJent DESCRIPTION Ad~;Atnent;: TimeAdiustment N/A ,1/28/2011 Active -600,00(J Activei Location Wailuku Oceanfront Hana Oceanfront Haiku Oceanfront Wailuku Oceanfront

! SiteNiew 42.75 acres 81.45 acres -1,426,00C 20.50 acres +790,000 120.819 acres -2,522,00(• Fencing Fencing None +20,00(J Fenced Fencingf Water Private Cachement +100,00(J Private Private

Zoning Ag Conservation +400,00(J Ag AgTerrain Sloping Sloping Sloping Sloping

Salesor Financing Walk to Beach Walk to Beach None NoneConcessions N/A N/A N/A N/ANetAdUTotal) 1 1Plus 1 X]Minus $ -906,000 1 X 1 Plus1 1Minus" $ 190,000 1 IPlus r xl Minus $ -2,522,000IndicatedValue Net=-23% -·1$ 3,094,00(

Net=6% -I $ 3,185,00(Net=-46% _I

of Subject Gross=49% Gross=46% Gross=46% -- $ 2,978,00(JCommentson MarketData Comp#5 is considered an overpriced listing; therefore a list/sale adjustment is required. Adjustment is put at20%

No adjustment given for subject's Walk to Beach feature. With large parcels like the subject, that do not have subdivision plans,walk to the beach is given less weight than the other features of the parcel, such as : accessibility, terrain, grade of slope, "as is"site improvements (like water to site, electric, paved or unpaved access, fencing, building sites, septic tanks, etc.). In the finalreconcnlatlon, subject's Walk to Beach feature weights the parcel towards the higher end of the value range which is$2,919,840 (adjusted sale price) - $3,102,000 (adjusted sale price).

~;.;

i

.....u, ...........•..•. ,Address 3530 Kahekili Hwy, Wailuku Hi.,-'96793Lender/Client Allan Mendes

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The undersigned has recited three recent sales of properties most similar and proximate to subject and has considered these in the market analysis. The description includesa dollar adjustment reflecting market reaction to those items of significant variation between the subject and comparable properties. If a significant item in the comparableproperty is superior to or more favorable than the subject property, a minus (-) adjustment is made thus reducing the indicated value of subject; if a significant item in thecomparable is inferior to or less favorable than the subject property, a plus (+) adjustment is made thus increasing the indicated value of the subject.

SUBJECT PROPERTY COMPARABLE NO. 7 COMPARABLE NO. 8 COMPARABLE NO. 9Address 4970 Kahekili Hwy Kai Poi St Kai PoiSt 3650 Kahekili Hwy

Wailuku, HI 96793 Haiku, HI 96708 Haiku, HI 96708 Wailuku, HI 96793Proximity to Subiect 15.92 miles E 15.92 miles E 0.83 milesSSales Price $ N/A 1$ 2,169,000 1$ 2,169,000 -1$ 1,500,000. Price $ 1$ 1$ 1$

~ Data Source 2-3-1-1-51 MBRMlS#353246/ 2-2-8-3-74 MBRMLS#35324 7/ 2-2-8-3-73 MBRMLS#356085/ 2-3-1-1-34~ Date of Sale and DESCRIPTION DESCRIPTiON Ad7ilS'tfnent DESCRIPTION Adii$iment DESCRIPTION AdwS'tfnent~ Time Adiustment N/A ., Active Active Activei Location Wailuku Oceanfront Haiku Oceanfront Haiku Oceanfront Wailuku Oceanfront~ SiteNiew 42.75 acres 10.25 acres +931,00(J 10.20 acres +931,00(J 21.73 acres +956,00(• Fencing Fencing Fencing Fencing Fencing/No access rd +100,00(;; Water Private Private Private Private

Zoning Ag Ag Ag AgTerrain Sloping Sloping Sloping Slpng/Gulch/FlagLot +150,00(

Sales or Financing Walk to Beach None None NoneConcessions N/A N/A N/A N/ANet Adi.IT otal) r xl Plus f lMinus $ 931,000 r Xl Plusf l Minus $ 931,000 1 X IPlus [ l Minus $ 1,206,000Indicated Value Net=43% I $ 3,100,00(

Net=43% .1 Net=80% ./of Subiect Gross=43% Gross=43% -- $ 3,100,00C Gross=80%-- $ 2,706,00(Comments on Market Data

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reporting requirements of this appraisal, including the following definition of market value, statement of assumptions and limitingconditions, and certifications. The appraiser must, at a minimum: (1) perform a complete visual inspection of the subject property,(2) inspect the neighborhood, (3) inspect each of the comparable sales from at least the street, (4) research, verify, and analyzedata from reliable public and/or private sources, and (5) report his or her analysis, opinions, and conclusions in this appraisal report.

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INTENDED USE: The intended use of this appraisal report is for the lender/client to evaluate the property that is thesubject of this appraisal for a mortgage finance transaction.

INTENDED USER: The intended user of this appraisal report is the lender/client.

DEFINITION OF MARKET VALUE: The most probable price which a property should bring in a competitive and openmarket under all conditions requisite to a fair sale, the buyer and seller, each acting prudently, knowledgeably and assumingthe price is not affected by undue stimulus. Implicit in this definition is the consummation of a sale as of a specified date andthe passing of title from seller to buyer under conditions whereby: (1) buyer and seller are typically motivated; (2) bothparties are well informed or well advised, and each acting in what he or she considers his or her own best interest; (3) areasonable time is allowed for exposure in the open market; (4) payment is made in terms of cash in U. S. dollars or in termsof financial arrangements comparable thereto; and (5) the price represents the normal consideration for the property soldunaffected by special or creative financing or sales concessions* granted by anyone associated with the sale.

*Adjustments to the comparables must be made for special or creative financing or sales concessions. No adjustments arenecessary for those costs which are normally paid by sellers as a result of tradition or law in a market area; these costs arereadily identifiable since the seller pays these costs in virtually all sales transactions. Special or creative financingadjustments can be made to the comparable property by comparisons to financing terms offered by a third party institutionallender that is not already involved in the property or transaction. Any adjustment should not be calculated on a mechanicaldollar for dollar cost of the financing or concession but the dollar amount of any adjustment should approximate the market'sreaction to the financing or concessions based on the appraiser's judgment.

STATEMENT OF ASSUMPTIONS AND LIMITING CONDITIONS: The appraiser'S certification in this report issubject to the following assumptions and limiting conditions:

1. The appraiser will not be responsible for matters of a legal nature that affect either the property being appraised or the titleto it, except for information that he or she became aware of during the research involved in performing this appraisal. Theappraiser assumes that the title is good and marketable and will not render any opinions about the title.

2. The appraiser has examined the available flood maps that are provided by the Federal Emergency Management Agency(or other data sources) and has noted in this appraisal report whether any portion of the subject site is located in anidentified Special Flood Hazard Area. Because the appraiser is not a surveyor, he or she makes no guarantees, express orimplied, regarding this determination.

3. The appraiser will not give testimony or appear in court because he or she made an appraisal of the property in question,unless specific arrangements to do so have been made beforehand, or as otherwise required by law.

4. The appraiser has noted in this appraisal report any adverse conditions (such as the presence of hazardous wastes, toxicsubstances, etc.) observed during the inspection of the subject property or that he or she became aware of during the researchinvolved in performing this appraisal. Unless otherwise stated in this appraisal report, the appraiser has no knowledge of any hiddenor unapparent deficiencies or adverse conditions of the property (such as, but not limited to, the presence of hazardous wastes, .toxic substances, adverse environmental conditions, etc.) that would make the property less valuable, and has assumed that thereare no such conditions and makes no guarantees or warranties, express or implied. The appraiser will not be responsible for anysuch conditions that do exist or for any engineering or testing that might be required to discover whether such conditions exist.Because the appraiser is not an expert in the field of environmental hazards, this appraisal report must not be considered asan environmental assessment of the property.

5. If the appraiser has based his or her appraisal report and valuation conclusion for an appraisal subject to certain conditions, itis assumed that the conditions will be met in a satisfactory manner.