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subject to material regulations, company history, and organization, and milestones -? Are you <br />familiar with that document? <br />STRAUSS: Yes. <br />RHO: Well, on the next page following milestones, it says use of proceeds; and <br />then it’s number 29, show how the company intends to use proceeds of this offering. And then <br />right below that it says if a minimum [13 retreat homes] are sold, then the company realizes “x” <br />amount of dollars. <br />STRAUSS: That’s correct. <br />RHO: So my understanding at this point, and you please clarify if I’m wrong, the <br />13 retreat homes mean the 13 of those G hale, G, F, and S, yes? That’s 13? <br />STRAUSS: That’s correct, 13. <br />RHO: And the expectation is that you would have one person occupying the staff <br />room who purchased the unit? <br />STRAUSS: Who actually built, who financed the construction of the unit but did not <br />purchase this unit. Their membership interest is a membership in the company that owns all of <br />this. <br />RHO: Right. But they do not have, well, okay, so I want to be a member, I <br />qualified to be a member, I saw an attorney, he advised me, I’m fully capable, I’m not mentally <br />incapacitated. So I plunk down “x” amount of dollars to build that unit, one of 13. <br />STRAUSS: Yes. <br />RHO: Okay, so what does that actually entitle me to if I would like to stay there <br />for a period of six months out of the year? I want to stay there for six month and the other half <br />of the year I want to have the management company or person rent it out? <br />STRAUSS: That allows you the exclusive occupancy of the staff room. But if you are <br />not there, there has to be staff present. <br />RHO: Right. <br />STRAUSS: So that allows the company to put staff in the room. <br />RHO: Okay. <br />STRAUSS: That’s it. The other rooms are for the use of Kalani Honua, Inc. <br /> EXHIBIT C 17 <br /> <br />