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which is not a divisible land interest. You don’t get a 1/3 or 1/30 undivided interest in the property. You become part of the company that owns the property in an undivided whole. What a person who does become a member obtains is a right to use, an exclusive right to use, a portion of the constructed improvements on the property for purposes consistent with the special permit. Your right as a member allows you to sell your membership interest only first back to the company from which you obtained it; and it does not provide a market for you to develop an interest in land that can then be freely transferable. We make it very clear that you’re not acquiring land apart from your membership in the company. And another thing I wanted to point out in Mr. Yuen’s presentation is that this is not a solicitation in the sense that we are soliciting members of the public. In order to be qualified to become a member of Kalani Kai, LLC, the person that is interested has to take on a lot of burdens. They have to become a teacher or a faculty member of the retreat, that they have to provide services, they have to meet with all the special permits. It is not that they get an opportunity to own a piece of land and then rent out three of the units for whatever purposes they want. They become part of this community. And that’s why it has got some unique features, because it is a collective community, if you will, for mutual support, for all those things that we outlined in the special permit for arts, for education, for wellness. So the person who comes in and invests money to build a structure is building it to provide for the community as a whole and the purpose as a whole; and they take on those burdens. When I say that it’s only available to qualified investors, in order to comply with securities regulations the determination was made early on that the only people that can qualify to become members of this company are those that have a prior affiliation with Kalani Honua, that are members and/or supporters of the nonprofit, and that there’s no public dissemination of this information. It’s a secure part of the website that you can only get to if you’ve already got a prior existing relationship with Kalani Honua. And the other discriminating factor that was required is that any person that intends to invest must be qualified. To invest as a member of the company, become part of this company, must be qualified. Qualification means they have to have it vetted either by their own attorney or their own financial planning professional. So there is not exposure to someone who doesn’t know what they’re getting into. The disclosure documents required for us to offer this in a nonpublic way are quite thick, quite detailed. I prepared the bulk of them myself, and it repeats over and over again you should not expect any market return on your investment. And we’ve provided those all to the Planning Director. This is part of the community that exists and an expansion of the community to provide through private financing and private contract, if you will, the contributions that are necessary to actually build the special permit residences. Each of them are still dedicated to the same purposes that were identified in the special permit -- no additional units, no additional people, and the primary purposes is to provide lodging. The Planning Department’s concerns I think have a lot to do with the unusual nature of this proposal, but I don’t see it as the Planning Department’s purview to try and protect individuals who are otherwise qualified and otherwise protected by their own investment advice. And we expect some attorneys to say don’t invest in this, you know, there are too many burdens, there’s no market for it. And we have had discussions with some attorneys that are taking that position; EXHIBIT C 7