2015-05-05

Dear Villa Owner,

Re: Bylaw Changes

Several months ago, your Board of Directors made the decision to revise and to update our bylaws. The bylaws were last updated in 2008. This decision was prompted by two recent events.

Firstly, one of our units experienced significant damage due to water leakage from a dishwasher. Under our present bylaws, the Corporation was responsible for repairing the damage. However, our Corporation insurance policy carries a $5000 deductible. The total cost of the repair was $7700 and it was deemed unwise to make a claim for the $2700 above the deductible because it would influence our premiums in the future. Because we are a bare land condominium, the Board is of the opinion that responsibility for the deductible for water damage occurring inside a unit should be transferred to the individual owner where the deductible would be considerably lower than the $5000 in the Corporation's policy [Section 46g on page 31] addresses this issue. You, the owner, should ensure that your insurance covers water damage caused from within your unit. Also, the Board believes that insurance coverage for all improvements and betterments should be the responsibility of the owner (most individual condominium policies already include this coverage). These bylaws have also been revised to more clearly indicate that exterior windows and doors are the sole responsibility of the owner.

Secondly, the provincial government has made major revisions to the Condominium Property Act and, as a result, our lawyer has advised us to update our bylaws to properly reflect the changes in the Act.

Attached is a copy of the revised bylaws, indicating wording which has been deleted [Lines through the deleted text] and wording which has been added [underlined].

We have also included in this package a Special Resolution which owners are requested to sign indicating approval of the revised bylaws. Please note that if 2 or more people are listed on the Land Title, all must sign the Special Resolution. The Board has designated June 17, 2015 as the day to verify, with Land Titles, the owners who are eligible to vote. Please return the resolution to any member of the Board.

If the new bylaws are accepted, [this requires approval of 75% of owners], they will be registered with the Land Titles on July 15, 2015. This will allow owners a month to make any changes to their own insurance coverage, if necessary.

Please contact any member of the Board if you have any questions.

Sincerely yours,

Deet Adam

President