DECLARATION OF HALIFAX COUNTY CONDOMINIUM CORPORATION NO. 269 MADE BY

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1 DECLARATION OF HALIFAX COUNTY CONDOMINIUM CORPORATION NO. 269 MADE BY GLEN ARBOUR CONDOMINIUM INC. OF THE HALIFAX REGIONAL MUNICIPALITY PROVINCE OF NOVA SCOTIA W:\wpdocs\United Gulf\Glen Arbour\Finalized Docs\FINALIZED DECLARATION Stephen D. Ling November 9, 2004.wpd 1

2 DECLARATION RECITALS Section 1 Introduction 1.01 Definitions (a) Access Driveway (b) Act (c) By-Laws (d) Common Elements (e) Corporation (f) Description (g) Developer (h) Development Agreement (i) HRM (j) Land (k) NSDEL (l) Termination (m) Unit (n) General 1.02 Statement of Intention 1.03 Consent of Encumbrancers 1.04 Boundaries of Units 1.05 Monuments 1.06 Proportions of the Common Interests 1.07 Contributions to the Common Expenses 1.08 Voting Rights 1.09 Arbitration Section 2 Development Agreement 2.01 Terms of the Development Agreement 2.02 Certified Operator for the On-site Wastewater Collection and Treatment System 2.03 Certified Annual Inspection of the On-site Wastewater Collection and Treatment System 2.04 Copies of all Agreements, etc. 2

3 Section 3 Common Expenses 3.01 Specification of Common Expenses 3.02 Payment of Common Expenses Section 4 Common Elements 4.01 Use of Common Elements 4.02 Parking 4.03 Limited Common Elements 4.04 Substantial Change to Common Elements Section 5 Units 5.01 Occupation and Use 5.02 Restrictions on Leasing Section 6 By-Laws Section 7 Modification of Common Elements and Assets Section 8 Maintenance and Repairs 8.01 Maintenance and Repairs of Units by the Owner 8.02 Repairs of Common Elements by the Corporation 8.03 Maintenance of the Common Elements 8.04 Additions, Alterations or Improvements by Owners Section 9 Damage 9.01 Procedure Where Damage Occurs 9.02 Repair after Damages 9.03 Plans and Specifications Section 10 Insurance By the Corporation General Provisions By the Owner 3

4 Section 11 Insurance Proceeds Insurance Trustee Distribution of Insurance Proceeds by Insurance Trustee Section 12 Indemnification Indemnity by Owner Indemnity by Corporation Section 13 Termination or Sale Termination Management after Termination Section 14 Expropriation Expropriation in Whole of the Property Part of Common Elements Only Taken Partial Expropriation Including Units Reconstitution of Scheme of Condominium after Reconstruction Section 15 Other Matters Concerning the Property License for Special Golfing Privileges and Protective Covenants Section 16 Director Provisions Number Quorum Qualification of Members of Board Nomination, Election and Term Removal of Directors Filling of Vacancies Calling Meetings Regular Meetings Adjourned Meeting 4

5 16.10 Vote Interest of Directors in Contracts Declaration of Interest Protection of Directors and Officers Indemnity of Directors and Officers Fidelity Bonds Section 17 Officers Elected Officers Appointed Officers Terms of Office President Vice President General Manager Secretary Treasurer Other Officers Compensation Section 18 Corporation Decisions Requiring Voting by Unit Owners Section 19 Duties of the Corporation Section 20 Assessment and Collection of Contribution towards the Common Expenses Assessment Annual Budget Contingency Fund Reserve Fund Contingency and Reserve Funds Part of Common Elements 5

6 20.06 Copies of Budget and Notices of Assessment Revised Assessments Special Assessments Moneys on Deposit Conveyance of Units Statement of Account Inspection of Books Collection Estoppel Certificate Default in Payment of Assessment Section 21 General Matters and Administration Sale of the Property or a Portion of the Common Elements Leasing of the Common Elements Termination of the Government of the Property Rights of entry Units Subject to Declaration, By-laws, Common Elements Rules and Rules and Regulations Invalidity Waiver Resolution of Conflict of Provisions Notice Construction of Declaration Headings Effective Date 6

7 Schedule A Legal Description Schedule B Consent of Encumbrances Schedule C Percentage Interest Schedule D Site Development Plan Schedule E Share Services and Facilities Schedule F Golfing Privileges 7

8 DECLARATION MADE PURSUANT TO THE CONDOMINIUM ACT REVISED STATUTES OF NOVA SCOTIA, 1989, Chapter 85 as amended FOR HALIFAX COUNTY CONDOMINIUM CORPORATION NO. 269 THIS DECLARATION of covenants, conditions and restrictions (hereinafter called the Declaration ) is made and executed pursuant to the provisions of the Condominium Act, Revised Statutes of Nova Scotia, 1989, Chapter 85, as amended, and the Regulations pursuant thereto (all of which are hereinafter referred to as the Act ), in Halifax, Halifax Regional Municipality, in the Province of Nova Scotia, By: Glen Arbour Condominiums Inc. a company incorporated under the laws of the Province of Nova Scotia, 380 Bedford Highway, in Halifax, Halifax Regional Municipality, in the Province of Nova Scotia B3M 2L4 (the Declarant ). WHEREAS (a) The Declarant is the Owner of the freehold estate in the lands and premises known as Glen Arbour condominiums (hereinafter called the Property ) situated at civic Greenside Lane, Hammonds Plains, Halifax Regional Municipality, Nova Scotia and more particularly described in Schedule A hereto annexed, and in the Description filed herewith in accordance with Article 12 of the Condominium Act; (b) The Declarant intends that the said lands together with the nine (9) buildings constructed thereon with 4 condominium units in each building for a total of thirty-six (36) condominium units shall be governed by the Act, as shown on the Site Plan annexed hereto as Schedule D ; (c) The Declarant is desirous of establishing for its own benefit and for the mutual benefit of all future owners or occupants of the Property or any part thereof, certain easements and rights in, over and upon the Property, and certain mutually beneficial restrictions and obligations with respect to the Property and the use, conduct and maintenance thereof; (d) The Declarant desires and intends that the several owners, mortgagees, occupants and other persons hereafter acquiring any interest in the Property shall at all times enjoy the benefits of and shall hold their interest together with and subject to the rights, easements, privileges and restrictions hereinafter set forth, and as provided by the Act and the Declaration, By-Laws and the Common Element Rules hereinafter referred to, all of which are declared to be in furtherance of a plan to promote and protect the 8

9 aspects of the Property which require cooperation and are established for the purpose of enhancing and protecting the value, desirability and attractiveness thereof; (e) The Declarant intends to create a Property with shared services and facilities, annexed hereto as Schedule E, to be installed and provided to the extent necessary to ensure the independent operation of the proposed condominium corporation. The Declarant further intends that the Property, including the shared services and facilities shall meet the applicable requirements of the Halifax Regional Municipality as set forth in the Development Agreement. The Development Agreement relates to the use of lands and development provisions as it applies to Blocks A, B, C, and D referred to in the Development Agreement. The Property created by this Declaration is occurring on Block D; (f) The Declarant intends that the Corporation shall assume those specifically identified duties, obligations, and responsibilities required to be assumed by the Corporation from the Developer, relating to Block D as referred to in the Development Agreement. NOW THEREFORE THE DECLARANT HEREBY DECLARES AS FOLLOWS: 1.00 DEFINITIONS 1.01 Definitions The following terms used herein have the meanings set out below unless the context otherwise requires: a) Access Driveway means a travel way over lands of the Corporation, known as Greenside Lane, which provides access from a public road being Glen Arbour Way, to and beyond the exclusive driveway parking spaces for each Unit as designated on the site plan corresponding with the Unit number prefaced by the letter P ; b) Act means the Condominium Act, Revised statutes of Nova Scotia, 1989, c. 85 as amended, together with the Regulations made pursuant thereto; c) By-Laws means By-Laws of this Condominium Corporation created pursuant to the Condominium Act, RSNS, 1989, Chapter 85 as amended, and the Regulations made pursuant thereto; d) Common Elements means all the property except the Units, including but not limited to the Access Driveway, the driveway parking space for each unit as designated on the site plan, corresponding with the unit number prefaced by the letter P, on site private wastewater collection and treatment system, on site water distribution and treatment system, landscaped parking, landscaped areas, exterior lighting, roofs, exterior foundations, exterior windows, exterior decks, exterior siding and exterior doors providing ingress to and egress from all Units; 9

10 e) Corporation means the Corporation created under the Act by acceptance for registration of this Declaration, the Description and the By-Laws; f) Description means the Description submitted for registration herewith by the Declarant under Article 12 of the Act; g) Developer means Annapolis Group Inc.; h) Development Agreement means the Development Agreement between Annapolis Group Inc. and Halifax Regional Municipality, as amended, dated August 29, 2001 and registered at the Registry of Deeds in Halifax County, Province of Nova Scotia in Book 6849 at Pages on the 29 th day of August, 2001; i) HRM means Halifax Regional Municipality; j) Land means the freehold land described in the Description; k) NSDEL means Nova Scotia Department of Environment and Labour; l) Termination means the termination of the Government of the property by the Act and includes termination as a result of damages; m) Unit means the part or parts of the land included in the Description and designated as a unit by the Description and comprises the space enclosed by its boundaries and all the material parts of the land within this space in accordance with the Declaration and Description; n) Any other words and phrases used herein which are defined in the Act have the meaning given to them by the Act Statement of Intention The Declarant intends that the land and building referred to in the Recitals (the Property ) be governed by the Act and any amendments thereto. The Act, the provisions of this Declaration, the Description, the By-Laws and the Common Element Rules are imposed upon the Property for the benefit of all the Units and all persons interested therein from time to time Consent of Encumbrancers The consent of all persons having registered encumbrances against the land or interests pertinent to the land described in the Descriptions contained in Schedule B attached to this declaration. 10

11 1.04 Boundaries of Units Each unit shall comprise the area bounded: (a) Horizontally On floor1, by the interior surface of the concrete wall and the extension of the plane of this surface across windows, doors and other openings or, by the exterior surface of the drywall sheeting (where no concrete was exists) and the extension of the plane of this surface across windows, doors and other openings. On floors 2 and 3, by the exterior surface of the drywall sheeting on the walls and the extension of the plane of such surfaces across windows, doors and other openings. (b) Vertically On all floors, by the lower surface of the wooden subfloor or upper surface of the concrete floor slab as the case may be and by the upper surface of the drywall sheeting on the ceiling or by the plane formed by the lower surface of the ceiling joists (wherein no drywall sheeting exists). Each unit shall contain a heating system, whether hot water baseboard, electric heat, heat pump and /or propane fireplace and any related tanks, pipes and accessories for which the unit owner is solely responsible. Notwithstanding the foregoing, the unit shall not include: (a) Any load-bearing walls, columns or beams within the boundaries of the unit; (b) Such pipes, wires, cables, conduits, ducts, flues, shafts, public utility lines and other horizontal or vertical service facilities which are used for the distribution of power, water, drainage and other services within the building and that are within the boundaries of the unit; but the unit shall include the fixtures, outlets and other facilities with respect to such service facilities which are within the boundaries of the unit and which serve the unit only Monuments The monuments controlling the extent of the units are fully described in the Description and all dimensions shall have reference to them Proportions of the Common Interests Each owner shall have an undivided interest in the Common Elements as a tenant-in-common with the other owners of all units; the proportions of the common interest are the percentages allocated to each unit as set out in Schedule C attached hereto Contributions to the Common Expenses Each owner shall contribute to the common expenses in the proportions identical to the percentages allocated to each unit as set out in Schedule C attached hereto. 11

12 1.08 Voting rights Each owner shall have voting rights in the Corporation in the proportions identical to the percentages allocated to each unit as set out in Schedule C attached hereto Arbitration Subject to Article 33 of the Act, in the event that any disagreement arises between the unit owners or with reference to any matter arising out of the ownership of the units or the Common Elements or any matter arising hereunder upon which there is a disagreement, then, the matter shall be referred to arbitration according to the terms set out in Article 33 of the Act, and the Arbitration Act. This provision shall apply to all matters for which Arbitration is required under the Condominium Act as amended DEVELOPMENT AGREEMENT 2.01 Terms of the Development Agreement The Land and the Corporation members will be subject to the terms and conditions of the Development Agreement. The terms and conditions of the Development Agreement include, but are not limited to: A. Architectural Guidelines; B. Nova Scotia Department of Environment and Labour Approval to Construct and Operate the Sewage Treatment Plant (Approval No ); C. Wastewater Collection and Treatment System Operation and Maintenance Manual prepared by CBCL Limited including as built record drawings for the recirculating sand filter, sewage treatment system; D. Water Supply Registration Registration Number: , Glen Arbour Greenside Lane, Hammonds Plains issued by Nova Scotia Department of Environment and Labour; E. Approval for Water Withdrawal Groundwater Authorization Number: Application Number: ; F. Water Distribution and Treatment System - Operation and Maintenance Manual prepared by CBCL Limited including as built record drawings for the water distribution and treatment system; 12

13 G. Access Driveway (plan and profile, Parcel D) dated February 5, 2003 and prepared by M. Sooriyakumaran, professional engineer, as drawing number: Certified Operator for the On-site Wastewater Collection and Treatment System Pursuant to the Development Agreement, the Corporation is responsible to employ a certificated operator for the on-site wastewater collection and treatment system. All operators shall have undertaken a wastewater operator training program approved by the NSDEL and any other training program approved by the NSDEL and any other additional training deemed necessary by the NSDEL to ensure that the operator has sufficient expertise to operate and maintain the systems and ensure the on-site wastewater collection and treatment system is operated and maintained in a good and safe condition Certified Annual Inspection for the On-site Wastewater Collection and Treatment System Pursuant to the Development Agreement, the Corporation is responsible to provide a certified annual inspection for the on-site wastewater collection and treatment system on the Land of the Corporation by a professional engineer for review by the HRM development engineer for the life of the Corporation and/or development including the reserve fund compliance as per the Act. The reserve fund compliance for the on-site wastewater collection and treatment system shall be established and maintained at a level required by the reserve fund study, or any updated reserve fund study, and in accordance with the requirements of s. 31 of the Act. Where an annual inspection report indicates malfunctioning of the on-site wastewater sewage system remedial measures shall immediately be commenced by the Corporation Copies of all Agreements The Declarant shall provide the Corporation with copies of all agreements, approvals, authorizations, registrations, permits, and licenses, etc. with respect to the shared services and facilities, and Common Elements, together with all operation and maintenance manuals with respect to the wastewater collection and treatment system and water distribution and treatment system COMMON EXPENSES 3.01 Specification of Common Expenses Common Expenses means the expenses of the performance of the objects and duties of the Corporation, and without limiting the generality of the foregoing, include the following: 13

14 (a) The maintenance, repair, replacement and operation of the Common Elements including but not limited to, the repair, replacement and snow removal of the Access Driveway, the driveway parking space for each unit as designated on the site plan, corresponding with the unit number prefaced by the letter P, on-site wastewater collection and treatment system, on-site water distribution and treatment system, landscaped areas, exterior lighting, roofs, exterior foundations, exterior windows, exterior decks, exterior siding and exterior doors providing ingress to and egress from all Units; (b) The cost of electricity, cold water and all other utilities and services purchased by the Corporation for use in the Common Elements; (c) The remuneration payable by the Corporation to any employees deemed necessary for the operation and maintenance of the property including the payment of any remuneration payable pursuant to any management agreement which the Corporation may enter into; (d) The cost of furnishings and equipment for use in and about the Common Elements including the repair, maintenance or replacement thereof; (e) The cost of legal, accounting and auditing services, fees and disbursements of an insurance Trustee, premiums for the Corporation s Insurance obligations, appraisals, fidelity bonds, the cost of carrying out the reserve fund study and the costs of carrying out any other objects and duties imposed by the Act, this Declaration and the By-Laws of the Corporation and its Board of Directors; (f) The cost of borrowing money to carry out the duties of the Corporation; (g) All sums of money assessed by the Corporation for collection from the Owners to be set aside in such separate fund or funds as may be provided for by the By-Laws of the Corporation, and to be applied, from time to time in whole or in part in the absolute discretion of the Corporation, towards meeting deficits and such other common purposes, or to be used or expended for major maintenance items, which occur less frequently than annually, and for major items of repair or replacement made necessary by damage, deterioration or obsolescence, as the Corporation may deem necessary or desirable in order to carry out the objects and duties of the Corporation; (h) The cost of heating and fuel purchased by the Corporation for heating the Common Elements. 14

15 3.02 Payment of Common Expenses The Declarant shall pay all common expenses of the corporation until the end of the calendar month in which 51% of the units have been sold and the transfer of those units have been registered. Until 51% of the units have been sold, the Board shall, in its sole and unfettered discretion, assess the estimated common expenses of the corporation and shall levy against the owners of the units, other than the Declarant, such proportion of the expenses as stipulated by Schedule C and the corporation shall pay to the Declarant such common expense contributions as received from time to time. Commencing in the month following the month in which 51% of the units have been sold, each owner, including the Declarant, shall pay to the corporation his proportionate share of the common expenses as indicated in Schedule C, the assessment of which may be regulated by the Board of Directors of the Corporation pursuant to this Declaration and the By-Laws of the Corporation COMMON ELEMENTS 4.01 Use of Common Elements Subject to the provisions of the Act, this Declaration, the By-Laws, and the Common Element Rules and any other rules and regulations passed thereto, each owner has full use, occupancy and enjoyment of the whole or any part of the Common Elements, except as herein otherwise provided Parking (a) Each owner is entitled to the exclusive use and possession of their driveway for a driveway parking space to which his unit has sole access. The driveway parking space for each unit is designated on the Site Plan, corresponding with the unit number prefaced by the letter P. Additional outdoor parking spaces, if any, will be designated and allocated from time to time by the Board of Directors. A unit owner, upon requesting and being allocated such additional outdoor parking spaces as may from time to time be available, may pay a rental to the Corporation or to such other person, firm or corporation to whom the Board of Directors has authorized the management, operation and control of the said parking spaces. The Corporation shall be permitted in its discretion to fix rental payments referred to herein or to suspend or cancel the same from time to time. (b) Each driveway parking space shall be used exclusively as a parking space for a vehicle which shall be parked in such manner so as not to impede or prevent access to other parking spaces. The owner, servants, agents, licensees or the owner s family, guests, tenants and visitors will obey all the parking regulations and any other traffic regulations presently in force and those promulgated in the future for safety, comfort and convenience of the owners of all units. An owner of a unit shall not permit his/her guests, tenants, servants, agents, licensees or members 15

16 of his/her family or himself to use parking spaces of other owners without the owner s consent. Only vehicles that are operable shall be permitted in the parking space and no repair work shall be performed on the vehicle while it is in the parking space Limited Common Elements Subject to the provisions of the Act, this Declaration, the By-Laws and the Rules and Regulations passed hereto: (a) Each owner is entitled to the exclusive use and possession of the inner surface of the glass windows to which his unit has sole access and the interior side of the exterior doors which provide the means of ingress to and egress from his unit; (b) Each owner is entitled to the exclusive use and possession of the balconies or patios to which each owner has sole access Substantial Change to Common Elements Any substantial change to the Common Elements can only be effected by a vote in a general meeting, or a duly convened special meeting, of the members of the corporation who own at least 80% of the Common Elements UNITS 5.01 Occupation and Use The occupation and use of the units shall be in accordance with the following restrictions and stipulations: (a) Each unit shall be occupied and used only as a residence for a single family and for no other purpose; (b) Nothing shall be done, or permitted to be done or brought into, or kept in a unit which will in any way increase the rate of fire insurance on the property or on any part thereof, or on chattels kept within any unit; (c) No unit shall be occupied or used by anyone in such a manner as to result in the cancellation of any policy of insurance referred to in this Declaration; (d) The owner of each unit, and all residents and visitors to his unit, shall comply with the Act, this Declaration, the By-Laws, and the Common Elements rules; (e) Prior to making any alterations or repairs to his unit, the owner shall submit his plans to the Board of Directors of the Corporation in accordance with the By-Laws for approval; and the Board shall approve the plans unless the proposed alterations or repairs or the 16

17 manner of carrying them out are likely to damage or impair the value of any other unit or the Common Elements; (f) The occupation of each unit shall be subject in all respects to the terms and provisions of any mortgage financing on the property until such time as such mortgage is paid in full and discharged; (g) Nothing herein contained shall prevent, and no by-law or house rule shall be made to prevent the Declarant, until all of the units have been sold for the first time by it, from completing the buildings and all improvements to the property, remedying defects, maintaining units as models for display and sales purposes, and otherwise marketing units and maintaining marketing and or construction offices, displays and signs relating to the property, provided that they are in accordance with any applicable by-laws of the municipality in which the property is situate Restrictions on Leasing Restrictions on leasing (a) No owner shall lease his unit unless he causes the tenant to execute and deliver an undertaking signed by the tenant, to the following effect; I,, undertake that I, the members of my household and my guests from time to time, will, in using the unit rented by me, and the Common Elements, comply with the Residential Tenancies Act and the Condominium Act, the Declaration, and By-Laws, including Common Element Rules, and all other rules and directions of the Condominium Corporation during the term of my tenancy. (b) Subject to paragraph 4.02 (a) herein, the entering into occupancy of any unit by an occupant with the consent of the owner shall constitute an agreement that the provisions of the Condominium Act and Regulations, the Declaration, the By-Laws including Common Element Rules and all other rules and directions of the Condominium Corporation are accepted and ratified by such occupant. (c) Any owner leasing his unit shall not be relieved thereby from any of his obligations with respect to the unit, which shall be joint and several with his tenant, and will notify the Corporation of the name of the tenant or tenants. (d) No tenant shall be liable for the payment of Common Expenses unless notified by the Corporation that the owner is in default of payment of Common Expenses, in which case the tenant shall deduct from the rent payable to the owner the owner s share of the Common Expenses and shall pay the same to the Corporation. 17

18 6.00 BY-LAWS Subject to paragraph 1.09 herein, the Corporation may, by a vote of members who own sixty percent (60%) of the Common Elements, make by-laws: (a) Governing the management of the Property; (b) Governing the use of the units or any of them for the purpose of preventing unreasonable interference with the use and enjoyment of the Common Elements and other units; (c) Governing the use of the Common Elements; (d) Regulating the maintenance of the units and Common Elements; (e) Governing the use and management of the assets of the Corporation; (f) Respecting the Board of Directors of the Corporation; (g) Specifying duties of the Corporation; (h) Regulating the assessment and collection of contributions towards Common Expenses; (i) Respecting the conduct generally of the affairs of the Corporation MODIFICATIONS OF COMMON ELEMENTS AND ASSETS For the purpose of Article 32 of the Act, the determination whether any addition, alteration or improvement to or renovation of the common Elements or any change in the assets of the Corporation is Substantial shall be made by an affirmative vote of the members who own fifty-one percent (51%) of the Common Elements MAINTENANCE AND REPAIRS 8.01 Maintenance and Repairs of Units by the Owner (a) Each owner shall maintain his unit, and, subject to the provisions of this Declaration and the By-Laws, repair his unit after damage, including without limiting the generality of the foregoing, repair of all improvements made by the Declarant in accordance with the architectural plans and specifications, notwithstanding that some of such improvements may have been made after the registration of this Declaration, at his own expense, with the intent that such owner will restore his unit to a state of repair at least equivalent to its condition at the time it was originally completed for sale by the Declarant; 18

19 (b) Each owner shall be responsible for all damages to any and all other units and to the Common Elements, which are caused by the failure of the owner to so maintain and repair his unit, save and except for any such damages to the Common Elements for which the cost of repairing same may be recovered under any policy or policies of Insurance held by the Corporation; (c) The Corporation shall make any repairs that an owner is obligated to make and which are not made within a reasonable time, and in such an event, an owner shall be deemed to have consented to having such repairs made by the Corporation; and such owner shall reimburse the Corporation in full for the cost of such repairs, including any legal or collection costs incurred by the Corporation in order to collect the costs of such repairs, taxed as between solicitor and client, and all sums of money shall bear interest at such rate as the Board of Directors shall decide upon (not exceeding 2% per annum above the prime rate charged by the Corporation s bankers from time to time). The Corporation may collect all such sums of money in such installments as the Board of Directors may decide upon, which installments shall be added to the monthly contribution towards the Common Expenses of such owner, after receipt of a notice from the Corporation thereof. All such payments are deemed to be additional contributions towards the Common Expenses and recoverable as such; 8.02 Repairs of Common Elements of the Corporation The Corporation shall repair the Common Elements after damage, including but not limited to, the repair and replacement of all driveways, on-site wastewater and treatment system, on-site private water distribution and treatment system, landscaped areas, exterior lighting, roofs, exterior foundations, exterior windows, exterior decks, exterior siding and exterior doors providing ingress to and egress from all units at its own expense Maintenance of the Common Elements The Corporation shall maintain the Common Elements save and except for any improvements made by an owner to the limited Common Elements appurtenant to his unit, the inner surface of the exterior glass windows to which a unit has sole access, the interior side of the exterior doors which provide means of ingress to or egress from a unit, which excluded portions of the Common Elements shall be maintained by the owner having the exclusive use and possession thereof pursuant to this Declaration; the maintenance by an owner of such excluded portions of the Common Elements shall be in accordance with any directions and specifications set from time to time by the Board of Directors of the Corporation Additions, Alterations or Improvements by Owners No owner shall make any structural change in or to his unit or any change to an installation upon the Common Elements, or maintain, decorate or repair any of the Common Elements 19

20 (except for repair and maintenance of such portions of the common Elements which the owner having the exclusive use and possession thereof is obligated to maintain pursuant to Paragraph 8.03 of this Section 8) without the prior consent in writing of the Board of Directors of the Corporation. Any change shall, if approved by the Board, be made in accordance with the provisions of all relevant municipal and other governmental by-laws, rules, regulations or ordinances and in accordance with the conditions, if any, of such approval, by the Board of Directors DAMAGE 9.01 Procedure where Damage Occurs Where there has been a determination by the Board of Directors that there has been substantial damage to the extent that the cost of repairs would be at least twenty-five percent (25%) of the value of the building immediately prior to the occurrence, notice of such determination shall, within ten days thereof, be given by the Corporation by registered mail to the owners and mortgagees entered in the register kept for such purposes, addressed to the owner and mortgagee(s) at the address set out in the said Register in accordance with the provisions of the by-laws of the Corporation, and together with such notice there shall be notice to the owners and mortgagees of a meeting called for the purpose of voting for repair or termination of the Condominium Repair After Damages (a) In the event of a vote for repair by members who own eighty percent (80%) of the Common Elements, the Corporation shall repair the Units and Common Elements in accordance with the architectural plans and specifications and certificate contained in the Description, with the following provisions: (i) The obligation of the Corporation to repair after damage hereunder, extends to all improvements made to the Units by the Declarant in accordance with the architectural plans and specifications, notwithstanding that some of such improvements may have been made after registration of this Declaration and the Description, but does not include repair of any improvements made to the unit by the Declarant for the owner thereof which are not included in the architectural plans and specifications of the Declarant; and (ii) The obligation of the Corporation to repair the units after damage shall be limited to repair in respect of all risks which are insured or insurable under any available policy of policies of insurance; (iii) Each unit owner shall repair his unit after damage in respect of all risks which are not insured or insurable under any available policy or policies of insurance. 20

21 (b) In the event that the Board of Directors shall determine that there has not been substantial damage, as defined in paragraph 9.01 hereof, then the Corporation and such owners whose units have been damaged shall repair in accordance with the provisions of paragraphs 8.01 and 8.02 of this Declaration Plans and Specifications A complete set of all the original architectural and structural plans and specifications for the building, including plans and specifications for any additions, alterations or improvements from time to time made to the Common Elements or to any unit with the prior consent in writing of the Board of Directors, shall be maintained in the office of the Corporation at all times for the use of the Corporation in rebuilding or repairing any damage to the building, and for the use of any owner and mortgagee INSURANCE By the Corporation (1) The Corporation shall be required to obtain and maintain, to the extent obtainable, the following insurance, in one of more policies: (a) Insurance against damage by fire and extended perils and such other perils as the Board of Directors may from time to time deem advisable insuring: i) The property, excluding the units, and; ii) Personal property owned by the Corporation, but not including furnishings, furniture, or other personal property supplied or installed by the owners; In an amount equal to the full replacement cost of such real and personal property without deduction for depreciation, which policy may be subject to a loss deductible clause; (b) Insurance against damage by fire and extended perils and such other perils as the Board of Directors may from time to time deem advisable, insuring the units including all improvements made to the units by the Declarant in accordance with its architectural plans and specifications, notwithstanding that some of such improvements may have been made after registration of the Declaration and the Description, but excluding any improvements made by the owners thereof, in an amount equal to the full replacement cost of such units without deduction for depreciation; (c) Public liability and property damage Insurance insuring the liability of the Corporation with limits to be determined by the Board of Directors, but in no event for less than Five Million Dollars ($5,000,000.00) and without right of subrogating as against the Corporation, its manager, agents, servants, and employees, and as against the owners, and any members of the household or guests or any owner or occupant of a unit, except for arson and fraud; and; 21

22 (d) Boiler and machinery insurance to the extent required as the Board of Directors may from time to time deem advisable. (2) Such policy or policies of insurance as required by paragraphs (a) and (b) of sub-section (1) hereof, shall insure the interests of the Corporation and the owners from time to time as their respective interests may appear, with mortgagee endorsements, which mortgagee endorsement shall be subject to the provisions hereof, and all such policy or policies of insurance shall contain the following provisions: (a) Where the amount received from an insurer from any loss arising out of any one occurrence does not exceed Five Hundred Thousand Dollars ($500,000.00), the said insurance amount for that loss shall be payable to the Corporation; in the event that the said loss exceeds Five Hundred Thousand Dollars ($500,000.00), the said insurance amount for that loss shall be payable to an Insurance Trustee whose services are retained for this purpose by the Corporation at the time of the said loss. (b) Waivers of subrogation against the Corporation, its manager, agents, employees and servants and owners and any member of the household or any owner or occupant of a unit, except for arson and fraud; (c) That such policy or policies of insurance shall not be cancelled or substantially modified without at least sixty days prior written notice to all parties whose interests appear thereon, and to an Insurance Trustee if one has been retained; (d) Waivers of any defence based on co-insurance or of invalidity arising from the conduct or any act or omission of any insured; (e) All policies of Insurance (insuring the liability of the Condominium Corporation) shall provide that the sae shall be primary Insurance in respect of any other Insurance carried by the Unit Owner; (f) A waiver of the insurer s and/or insurers option to repair, rebuild, or replace in the event that after damage, the government of the property by the Act is terminated pursuant to paragraph 9.01 hereof; (g) That loss shall be payable to the corporation General Provisions (a) Prior to obtaining any policy or policies of Insurance under paragraph of the section 10.00, or any renewal or renewals thereof, the Board may, at its discretion, or shall at the request of a majority of Unit Owners, obtain an appraisal from an independent qualified appraiser, of the full replacement cost of the property for the purpose of determining the amount of Insurance to be affected pursuant to paragraph of this Section and the cost of such appraisal shall be a common expense. (b) The Corporation, its Board of Directors, and its officers shall have the exclusive right, on behalf of itself and as agents for the owners, to adjust any loss and settle all claims with 22

23 respect to all insurance placed by the Corporation, and to give such releases as are required, and any claimant, including the owner of a damaged unit, shall be bound by such adjustment, provided, however, that the Board of Directors may in writing, authorize an owner to adjust any loss to his unit with an insurer. (c) Every mortgagee shall be deemed to have agreed to waive any right to have proceeds of any insurance applied on account of the mortgage where such application would prevent application of the insurance proceeds in satisfaction of an obligation to repair. This paragraph (c) shall be read without prejudice to the right of any mortgages in possession to exercise the right of an owner to vote or to consent, if the mortgagee itself contains a provision giving the mortgagee that right, and also to the right of any mortgagee to receive the proceeds of any insurance policy, if the property is not repaired. (d) At the request of an owner or mortgagee, a certificate of all Insurance policies and endorsements thereto shall be issued as soon as possible to each owner and the mortgagee shall be supplied with a duplicate original or certified copy of the policy and endorsements thereto; at the request of an owner or mortgagee, renewal certificates or certificates of new insurance policies shall be furnished to each owner and renewal certificates or certified copies of new insurance policies to each mortgagee. The master policy for any insurance coverage shall be kept by the Corporation in its offices available for inspection by an owner or mortgagee on reasonable notice to the Corporation. (e) No insured other than the Corporation shall be entitled to amend any policy or policies of insurance obtained and maintained by the Corporation, or to direct that loss shall be payable in any manner other than as provided in this Declaration. (f) Where the Corporation, instead of the Insurance Trustee, receives any proceeds of insurance pursuant to sub-paragraph (e) of paragraph (2) of this Section 10, the proportion of such proceeds attributable to damage to any unit or units shall be held in trust for the owner or owners of such unit or units and, at the discretion of the Board of Directors, may be applied by the Corporation to the repair of such unit or units or may be paid to such owner or owners subject at all times to the interest, if any, of the mortgagee. (g) Where any insurance proceeds have been paid to an owner for the purpose of effecting repairs to his unit, then such owner shall effect such repairs within two months of such payment or within such further period of time as the Board of Directors of the Corporation may permit in writing, and he shall furnish the Corporation with evidence that such repairs have been completed in accordance with Section 8.00 of this Declaration By the Owner (a) Each unit owner may obtain and maintain his own insurance on any additions or improvements made by the owner to his unit and for furnishings, fixtures, equipment, 23

24 decorating and personal property and chattels of the owner contained in his unit and his personal property and chattels stored elsewhere on the property, including his automobile or automobiles, and for the loss of use and occupancy of his unit in the event of damage, which policy or policies of insurance shall contain waivers of subrogation against the Corporation, its manager, agents, employees and servants, and against the other owners and any members of their household or any owner or occupant of another unit, except for arson and fraud. (b) Each owner may obtain and maintain his own public liability insurance covering any liability of the owner with regard to the property and his unit pursuant to this Declaration to the extent not covered by any public liability and property damage insurance obtained by the Corporation. (c) At the request of the Board of Directors, each owner shall file a certified copy of any policy or policies of insurance obtained or maintained by him pursuant to this paragraph with the Corporation within ten days of such a request INSURANCE PROCEEDS Insurance Trustee Upon any claim being made to the Board of Directors against the policy of insurance held by the Corporation for loss to a unit or units and/or the Common Elements which exceeds the sum of Five Hundred Thousand Dollars ($500,00.00), the Board of Directors on behalf of the Corporation shall enter into an agreement with an Insurance Trustee which shall be a Trust Company authorized to carry on business in Nova Scotia, a Chartered Bank, a Chartered Accountant, or a Lawyer, or such other person as may be determined by the Board of Directors which agreement shall, without limiting the generality of the foregoing, provide the following: (a) The receipt by the Insurance Trustee of any proceeds of insurance payable to the Corporation where such proceeds exceed Five Hundred Thousand Dollars ($500,00.00); (b) The holding of such proceeds in trust for those entitled thereto pursuant to the provisions of this Declaration; (c) The disbursement of such proceeds in accordance with the provisions of the Insurance Trust Agreement. In the event that the Board of Directors is unable to enter into such agreement with such Trust Company, or such Chartered Bank, by reason of their refusal to act, the Board of Directors may enter into such Agreement with such other corporation or individual authorized to act as a Trustee, as in its discretion the Board of Directors may deem advisable. The Corporation shall pay the fees and disbursements of any Insurance Trustee and any fees and disbursements shall constitute a Common Expense. 24

25 11.02 Distribution of Insurance Proceeds by Trustee In the event that: (a) The Corporation is obligated to repair any unit insured under sub-paragraph (b) of paragraph 10.01(1) of Section hereof, in accordance with the provisions of Section 9.00 hereof, the Insurance Trustee shall hold all proceeds for the Corporation and shall disburse the same in accordance with the provisions of the Insurance Trust Agreement, in order to satisfy the obligation of the Corporation to make such repairs; (b) There is no obligation by the Corporation to repair any unit in accordance with the provision of Section 9.00 hereof and there is termination in accordance with the provisions of Article 41 of the Act, the Insurance trustee shall hold all proceeds for the owners in the proportion of their respective interests in the Common Elements and shall pay such proceeds to the owners in such proportions, upon registration of a notice of termination by the Corporation; (c) Where the Board of Directors in accordance with the provisions of sub-section (1) of Article 36 of the Act determines that there has not been substantial damage to the extent that the cost of repairs would be at least twenty-five percent (25%) of the value of the buildings immediately prior to the occurrence, the Insurance Trustee shall hold all proceeds for the Corporation and the owners whose units have been damaged, as their respective interests may appear in accordance with the provisions of the Insurance Trust Agreement in order to satisfy the respective obligations to make repairs pursuant to the provisions of Section 8 of this Declaration; Notwithstanding anything to the contrary herein contained, any proceeds payable by an Insurance Trustee to an owner, in accordance with the provisions of sub-paragraph (b) of this paragraph of Section hereof shall be subject to payment in favour of any mortgagee of mortgagees to whom each loss be payable in such policy or policies of Insurance and in satisfaction of the amount due under any liens registered by the Corporation against each unit INDEMNIFICATION Indemnity by Owner Each owner shall indemnify and save harmless the Corporation from and against any loss, costs, damage, injury or liability whatsoever which the Corporation may suffer or incur resulting from or caused by any act or omission of such owner, his family or any member thereof, and any other occupants of his unit or any guests, invitees or licensees of such owner or occupant to or with respect of the Common Elements and/or all other units, except for any loss, costs, damages, injury or liability caused by an Insured (as defined in any policy or policies of Insurance) and insured against by the Corporation. 25

26 Any sums of money to be paid by an owner to the Corporation pursuant to this paragraph of Section shall include any legal or collection costs as between solicitor and client incurred by the Corporation in order to collect such sums of money. And all such sums of money shall bear interest at the rate of interest as the Board of Directors in their consideration may decide upon, not exceeding 2% above prime rate charged by the Corporation s bankers from time to time. The Corporation may collect such sums of money in such instalments as the Board of Directors may decide upon, which instalments shall be added to the monthly contribution towards the common expenses of such owner, after receipt of notice from the Corporation thereof. All payments pursuant to this paragraph are deemed to be additional contributions toward the Common Expenses and are recoverable as such Indemnity by Corporation The Corporation shall indemnify and save harmless the owner of each unit from and against any loss, costs, damages, injury or liability whatsoever which may be suffered or incurred by each owner his family or any member thereof, any other occupants of his unit or any guests, invitees or licensees of such owner or occupants, resulting from or caused by the negligence or wrongful act of omission of the Corporation, its manager, agents, servants, employees or independent contractors, or for damage done to the unit substantially resulting from the repair or maintenance by the Corporation of the Common Elements; provided that, notwithstanding anything hereinbefore contained, such owner agreed to look solely to the proceeds received from the Insurer or Insurers of the public liability and property damage Insurance of the Corporation in the event of such loss costs, damage, injury or liability TERMINATION Termination A vote of unit owners representing 100% of the Common Elements and consent of the persons having registered claims against the property, created after the acceptance for registration of the Declaration and Description, is required to terminate the government of the property of the Condominium Act Management After Termination In the event of termination of the government of the property by the Act is authorized, then the Board of Directors of the Corporation may authorize any procedures, rules and regulations and any other matters deemed necessary to complete such sale or termination and to manage the property pending such completion EXPROPRIATION Expropriation in Whole of the Property 26