BYLAWS TABLE OF CONTENTS

PART 1 – CREATION OF SECTIONS

1.1 Commercial Section 1.2 Resort Lot Section 1.3 Resort Management Lot Section

PART 2 – GENERAL DUTIES OF OWNERS, TENANTS AND OCCUPANTS 2.1 Payment of Strata Fees 2.2 Inform Strata Corporation 2.3 Permit Entry to Strata Lot 2.4 Compliance with Bylaws 2.5 Claims on Insurance Policies PART 3 – MAINTENANCE, REPAIRS AND ALTERATIONS 3.1 Standards 3.2 Repair and Maintenance of Strata Lot and Limited Common Property by Owner 3.3 Repair and Maintenance of Property by Sections 3.4 Repair and Maintenance of Common Property and Common Assets by Strata Corporation 3.5 Obtain Approval Before Altering a Strata Lot 3.6 Obtain Approval Before Altering Limited Common Property and Common Property 3.7 Approval of Alterations PART 4 – COUNCIL 4.1 Council Size and Members 4.2 Council Members’ Terms / Nominations 4.3 Removing a Council Member 4.4 Replacing a Council Member 4.5 Officers 4.6 Calling Council Meetings 4.7 Requisition of Council Hearing 4.8 Quorum of Council 4.9 Council Meetings 4.10 Voting at Council Meetings 4.11 Council to Inform Owners of Minutes 4.12 Delegation of Council’s Powers and Duties 4.13 Spending Restrictions 4.14 Limitation on Liability of Council Member 4.15 Consents PART 5 – ENFORCEMENT OF BYLAWS AND RULES 5.1 Maximum Fine 5.2 Continuing Contravention 5.3 Small Claims Court

PART 6 – ANNUAL AND SPECIAL GENERAL MEETINGS 6.1 Person to Chair Meeting 6.2 Participation by Other Than Eligible Voters 6.3 Voting 6.4 Order of Business 6.5 Electronic Attendance at Meetings 6.6 Timing of Annual General Meetings 6.7 Quorum for Adjourned Meeting PART 7 – COMMON EXPENSES 7.1 Strata Fees 7.2 Section Fees 7.3 Apportionment of Common Expenses 7.4 Allocation of Specific Expenses Between Sections 7.5 Payment and Collection of Section Fees 7.6 Annual Budget Process PART 8 – EXECUTIVE OF SEPARATE SECTIONS 8.1 Resort Lot Section Executive Size and Members 8.2 Commercial Section Executive Size and Members 8.3 Resort Management Section Executive Size and Members 8.4 Executive Officers 8.5 Quorum of Executive 8.6 Application of Part 4 PART 9 – GENERAL BYLAWS 9.1 Use of property – General 9.2 Moving In / Out Procedures 9.3 Pets 9.4 Commercial Operations, Sports Equipment, Storage, Parking 9.5 Use of Common Property and Common Facilities 9.6 Insurance 9.7 Common Facilities and Limited Common Property PART 10 – BYLAW RESTRICTIONS 10.1 Bylaw Restrictions PART 11 – VOLUNTARY DISPUTE RESOLUTION 11.1 Voluntary dispute resolution PART 12 – INTERPRETATION 12.1 Defined terms 12.2 Severability

STRATA KAS 3058 THE COVE LAKESIDE RESORT

SCHEDULE OF BYLAWS (as amended January 23, 2016)

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The following or attached Bylaws differ from the Standard Bylaws to the Strata Property Act, permitted by Section 120 of the Act:

PART 1 - CREATION OF SECTIONS

1.1 Commercial Section A section ("the Commercial Section") is hereby created within the Strata Corporation consisting of strata lots 1, 3 and 4 (the "Commercial Strata Lots"). The Commercial Section shall be administered in accordance with these bylaws. 1.2. Resort Lot Section A section ("the Resort Lot Section") is hereby created within the Strata Corporation consisting of strata lots 5 to 154 inclusive (the "Resort Strata Lots"). The Resort Lot Section shall be administered in accordance with these bylaws. 1.3 Resort Management Lot Section A section (the "Resort Management Section") is hereby created within the Strata Corporation consisting of strata lot 2 (the "Resort Management Strata Lot"). The Resort Management Lot Section shall be administered in accordance with these bylaws.

PART 2 - GENERAL DUTIES OF OWNERS, TENANTS AND OCCUPANTS 2.1 Payment of Strata Fees

(1) An owner must pay strata fees on or before the first day of the month to which the strata fees relate. The strata fees will be made up of the fees owing to the Strata Corporation and the fees owing to the section of which the owner's strata lot is a part as set out in the approved budget.

(2) If an owner fails to pay strata fees or a special levy when due, the Strata Corporation may charge interest at the rate of 10% per annum compounded annually. The Strata Corporation must pay to the section of which that owner's strata lot is a part the owner's proportionate share of any such interest received insofar as it relates to the section fees included in the late strata fees. 2.2 Inform Strata Corporation (1) Within 2 weeks of becoming an owner or tenant, that person must inform the Strata

Corporation of their name, strata lot number and mailing address outside the strata plan, if any. 2.3 Permit Entry to Strata Lot (1) An owner, tenant, occupant or visitor must allow a person authorized by the Strata Corporation to enter the strata lot and/or limited common property:

(a) in an emergency, without notice, to ensure safety or prevent significant loss or

damage,

(b) at a reasonable time, on 24 hours’ written or email notice, to inspect (with reason), repair or maintain common property, common assets and any portions of a strata lot that are the responsibility of the Strata Corporation to repair and maintain under these bylaws or insure under section 149 of the Act, and

(2) The notice referred to in subsection (1) (b) must include the date and approximate time of entry, and the reason for entry. 2.4 Compliance with Bylaws An owner, tenant or occupant, employee or visitor must comply strictly with these bylaws and with any rules adopted from time to time by the Strata Corporation or the section of which the applicable strata lot is a part. 2.5 Claims on Insurance Policies An owner, tenant, occupant, employee or visitor must not do, or omit to do, any act which would result in a claim being made on the insurance policy of either the Strata Corporation or a separate section. In the event that an owner, or an owner’s tenant, occupant, employee, contractor or visitor is responsible for loss or damage that gives rise to a claim on the insurance policy of either the Strata Corporation or a section of the Strata Corporation, the owner shall promptly reimburse the Strata Corporation, or the section of the Strata Corporation, as the case may be, for the deductible portion of such insurance claim.

PART 3 – MAINTENANCE, REPAIRS AND ALTERATIONS

3.1 Standards All repairs and maintenance by an owner, a section or the Strata Corporation must be carried out to a standard which is consistent with a First Class Lakefront Resort. In these bylaws, “First Class Lakefront Resort” means a first class lakefront resort having design, development, construction, furnishing and equipping, operating, service and maintenance standards of one of the 10 top-ranked lakefront resorts in British Columbia according to tourism industry surveys. 3.2 Repair and Maintenance of Strata Lot and Limited Common Property by Owner (1) An owner must repair and maintain the owner’s strata lot, except for repair and maintenance that is the responsibility under these bylaws of the Strata Corporation or

the section of which that owner’s strata lot is a part. (2) An owner who has the exclusive use of limited common property, whether alone or in common with others, must repair and maintain it, except for repair and maintenance that is the responsibility under these bylaws of the Strata Corporation or the section of which that owner’s strata lot is a part. 3.3 Repair and Maintenance of Property by Sections Each section must repair and maintain all of the limited common property designated for such section or any or all owners of strata lots in that section, but the duty to repair and maintain does not include repair and maintenance of the structure or roof of a building, which is the responsibility of the Strata Corporation.

3.4 Repair and Maintenance of Common Property and Common Assets by Strata Corporation

The Strata Corporation must repair and maintain all of the following:

(a) common assets of the Strata Corporation;

(b) common property that has not been designated as limited common property;

(c) limited common property, except for repair and maintenance that is the responsibility of an owner under bylaw 3.2 or a section under bylaw 3.3, but the duty to repair and maintain is restricted to:

i. repair and maintenance that in the ordinary course of events occurs less often than once a year, and

ii. the structure of any building, no matter how often the repair or maintenance ordinarily occurs.

(d) a strata lot, but the duty to repair and maintain it is restricted to: i. the structure of any building;

ii. the exterior of any building; iii. chimneys, stairs, balconies or other fixtures attached to the exterior of any building; iv. doors, windows, or skylights on the exterior of any building; v. fences, railings or similar structures that enclose a patio or balcony, and

vi. common property located within the boundaries of a strata lot.

3.5 Obtain Approval before Altering a Strata Lot

(1) An owner must obtain the written approval of the Strata Council before making or permitting an alteration to a strata lot that involves any of the following:

(a) the structure of a building; (b) the exterior of a building; (c) chimneys, stairs, balconies, patios, or other things attached to the exterior of a building; (d) doors, windows or skylights on the exterior of a building, or that front on the common property; (e) fences, railings or similar structures that enclose a patio, balcony or yard;

(f) installation of antennas, satellite dishes, and/or wiring, plumbing, and original and supplementary heating systems or air conditioning devices and other similar services;

(g) common property located within the boundaries of a strata lot; (h) those parts of the strata lot which the Strata Corporation must insure under section 149 of the Act. (2) Except for the replacement of wall-to-wall carpeting with wall-to-wall carpeting, the written approval of the Strata Council must be obtained prior to the installation of any other flooring material. Changes to flooring materials will be considered by the Strata Council on the basis of whether, in the reasonable opinion of the Strata Council, they will minimize the transmission of noise to other strata lots in the building. 3.6 Obtain Approval before Altering Limited Common Property and Common Property (1) An owner must obtain the written approval of the Strata Council before making an alteration to common property, including limited common property, or common assets. (2) Any alteration to common property which constitutes a significant change to the use or appearance of common property will also require the approval of the owners by ¾ vote resolution pursuant to section 71 of the Strata Property Act. (3) No heater, air conditioner, appliance, light fixture, shade, awning, canopy, screen, sunscreen, antennae, satellite dish, greenhouse, hot tub, shed, locker, or enclosure, shall be hung, attached or placed on the common property, including limited common property without the prior written permission of the Strata Council. (4) No trees, hedges, shrubs or other plants may be planted on common property, including limited common property which would interfere with lawn maintenance, snow clearing, traffic flow or the general aesthetics of the Strata Corporation, except with the prior written permission of the Strata Council. (5) No one may damage, destroy, remove or otherwise interfere with the growth or maintenance of trees, shrubs, lawns or other plants situated on common property, except with the properly delegated authority of the Strata Council, or with the prior written consent of the Strata Council. (6) Without limiting the generality of the foregoing, no person may install any appliance,

fixture or make an improvement to a strata lot or the common property that imposes an additional or significant burden on the heating, cooling, electrical or geo-thermal system of the Strata Corporation, or make any alteration to a strata lot, or the common property, that effects or compromises the structural integrity of any building without the prior written approval of the Strata Council.

3.7 Approval of Alterations (1) Any alteration to a strata lot or to common property or limited common property that has not received the prior written approval of the Strata Council must be removed at the owner’s expense if the Strata Council orders that the alteration be removed.

(2) An owner seeking approval of any alteration to a strata lot pursuant to bylaw 3.5 or to common property or limited common property pursuant to bylaw 3.6 must provide the Strata Council with comprehensive details of the proposed alteration. The owner must provide additional documentation requested by the Strata Council including sketch plans, an engineering report, or such other documentation as may be reasonably requested. (3) The Strata Council must not unreasonably withhold its approval under bylaw 3.5 and 3.6. (4) The owner will be responsible to obtain the applicable municipal permits prior to commencing the work, and any approval of the Strata Council shall be conditional upon the obtaining of such permits and provision of copies of such to the Strata Council prior to commencing any such work. (5) The owner must ensure that work done complies with the design or plans approved by the Strata Council or its duly authorized representative, the current provisions of the BC Building Code, municipal bylaws and other applicable regulations, as amended from time to time, and that the work is performed by licensed and bonded tradespersons, where appropriate. (6) The Strata Council may require, or have an owner provide, specified professional supervision or inspection, or both, of approved alterations. The Strata Council may include specified supervision or inspection as a condition of approval. (7) Any approval of the Strata Council to alterations to a strata lot or the common property, or limited common property, shall be deemed to include the following conditions: (a) An owner must give the Strata Council two working days prior notice of the scheduled arrival of a tradesperson(s) and the delivery of materials; (b) Drop cloths are to be installed and removed daily between the elevators and the strata lot as well as between other doors to protect common areas from any spillage or dripping; (c) Stairs, lobbies and paths through the parking areas are regularly cleaned (and vacuumed at the request of the council) and the residential corridor thoroughly vacuumed daily; and (d) An owner or appointee must be in attendance for any renovations/alterations if specified by council at the time of approval, or if required by council in response to any complaint. (e) The common property may not be used to store construction materials or debris and an owner must not permit any construction debris, materials or packaging to be deposited in the Strata Corporation’s disposal containers. (f) The reasonable noise and disruption associated with working on approved alterations, shall not be deemed to be a contravention of these bylaws, provided that reasonable precautions are taken to minimize the noise and disruption, and provided that any work which is likely to cause a disturbance is only conducted between 8am and 5pm Monday through Friday, and 10am and 5pm on Saturdays. There shall be no such work conducted on Sundays and Statutory Holidays without the written permission of the Strata Council, which permission must be obtained at least five days in advance. (g) If an owner engages contractors, employees or workers of any kind to conduct or assist with any alteration, the owner must take all steps to ensure that full WCB

coverage is in place, and to avoid and/or immediately discharge any builder’s lien which is placed on any property, including the owner’s strata lot, within the strata plan as a result of the work conducted with respect to the alteration.

PART 4 - COUNCIL

4.1 Council Size and Members The council must have at least 3 and not more than 7 members. A person other than an owner of a strata lot, an individual representing a corporate owner of a strata lot and/or a tenant of a strata lot may be a member of the council of the Strata Corporation provided such person falls within one of the following classes of persons:

(a) a spouse of an owner; (b) a representative or advisor of an owner appointment by the owner in writing.

4.2 Council Members' Terms / Nominations

(1) The term of office of a council member ends at the end of the Annual General Meeting at which the new council is elected.

(2) A person whose term as council member is ending is eligible for re-election.

(3) Nominations for the council shall be made in writing and shall be delivered to the then serving president or vice-president at least 7 days in advance of the Annual General Meeting. Any owner may nominate any other owner for council.

4.3 Removing a Council Member (1) The Strata Corporation may remove any council member by a resolution passed by

either: (a) A 3/4 vote at an annual or special general meeting, or (b) i. a majority vote of all owners; and ii. A majority of the owners of strata lots in the section which appointed any such

council member, at an annual or special general meeting.

(2) After removing a council member, the Strata Corporation must hold an election at the same annual general or special general meeting to replace the council member for the remainder of the term of the member's appointment.

(3) No person may stand for council or continue to be on council with respect to a strata lot if the Strata Corporation is entitled to register a lien against that strata lot under the Strata Property Act.

4.4 Replacing a Council Member

(1) If a council member resigns or is unwilling or unable to act for a period of 2 or more consecutive months, the remaining members of the council may appoint a replacement council member for the remainder of the term of that member's

appointment for the period during which that council member is unwilling or unable to act.

(2) A replacement council member may be appointed from any person eligible to sit on the council.

(3) The council may appoint a council member under this section even if the absence of the member being replaced leaves the council without a quorum.

(4) If all the members of the council resign or are unwilling to act, or the number of council members willing and able to act do not constitute a quorum for a period of 2 or more consecutive months, persons holding at least 25% of the Strata Corporations votes may requisition and hold a Special General Meeting to elect a new council by complying with the provisions of the Strata Property Act, the regulations and these bylaws respecting the calling and holding of meetings.

4.5 Officers

(1) At the first meeting of the council held after each annual general meeting of the Strata Corporation, the council must elect, from among its members, a president and a vice president, and may elect a secretary and treasurer.

(2) A person may hold more than one office at a time, other than the offices of president and vice president.

(3) The vice president has the powers and duties of the president:

(a) while the president is absent or is unwilling or unable to act, or (b) For the remainder of the president's term if the president ceases to hold office.

(4) If an officer other than the president is unwilling or unable to act for a period of 2 or more consecutive months, the council members may appoint a replacement officer from among themselves for the remainder of the term.

4.6 Calling Council Meetings

(1) Any council member may call a council meeting by giving the other council members at least one week's notice of the meeting, specifying the reason for calling the meeting.

(2) The notice does not have to be in writing.

(3) A council meeting may be held on less than one week's notice if:

(a) all council members consent in advance of the meeting, or

(b) the meeting is required to deal with an emergency situation, and all council members either:

i. consent in advance of the meeting, or

ii. consent of all members of the council is not able to be obtained after reasonable attempts have been made to contact them PROVIDED THAT sufficient council members to constitute a quorum attend such meeting.

4.7 Requisition of Council Hearing

(1) By application in writing, stating the reason for the request, an owner or tenant may request to be heard at a council meeting.

(2) If a hearing is requested under subsection (1), the council must hold a meeting to hear the applicant within one month of the request.

(3) If the purpose of the hearing is to seek a decision of the council, the council must give the applicant a written decision within one week of the hearing.

4.8 Quorum of Council

A quorum of the council is 4. 4.9 Council Meetings

(1) At the option of the council, council meetings may be held by electronic means, so long as all council members and other participants can communicate with each other.

(2) If a council meeting is held by electronic means, council members are deemed to be present in person.

(3) Owners may attend council meeting as observers with notice and stated purpose.

(4) Despite subsection (3), no observers may attend those portions of a council meeting that deal with any of the following:

(a) bylaw contravention hearings,

(b) any other matter if the presence of observers would, in the council's opinion, unreasonably interfere with any individuals' privacy.

4.10 Voting at Council Meetings

(1) At council meetings, decisions must be made by a majority of council members present in person at the meeting.

(2) If there is a tie vote at a council meeting, the president is not entitled to break the tie by casting a second, deciding vote.

(3) The results of all votes at a council meeting must be recorded in the council meeting minutes.

4.11 Council to Inform Owners of Minutes

The council must inform owners of the minutes of all council meetings within one month after the meeting, whether or not the minutes have been approved.

4.12 Delegation of Council's Powers and Duties

(1) Subject to subsection (2) to (4), the council may delegate some or all of its powers and duties to one or more council members or persons who are not members of the council, and may revoke the delegation.

(2) The council may delegate its spending powers or duties, but only by a resolution that:

(a) delegates the authority to make an expenditure of a specific amount for a specific purpose, or

(b) delegates the general authority to make expenditures in accordance with subsection (3).

(3) A delegation of a general authority to make expenditures must:

(a) set a maximum amount that may be spent, and

(b) Indicate the purposes for which, or the conditions under which, the money may be spent.

(4) The council may not delegate its powers to determine, based on the facts of a

particular case:

(a) whether a person has contravened a bylaw or rule, (b) whether a person should be fined, and the amount of the fine, or (c) whether a person should be denied access to a recreational facility.

4.13 Spending Restrictions

(1) A person may not spend the Strata Corporation's money unless the person has been delegated the power to do so in accordance with these bylaws,

(2) Despite subsection (1), a council member may spend the Strata Corporation's money to repair or replace common property or common assets if the repair or replacement is immediately required to ensure safety or prevent significant loss or damage.

4.14 Limitation on Liability of Council Member

(1) A council member who acts honestly and in good faith is not personally liable because of anything done or omitted in the exercise or intended exercise of any power or the performance or intended performance of any duty of the council.

(2) Subsection (1) does not affect a council member's liability, as an owner, for a judgment against the Strata Corporation.

4.15 Consents

Any consent, approval or permission given under these bylaws by the council shall be revocable at any time upon reasonable notice.

PART 5 - ENFORCEMENT OF BYLAWS AND RULES 5.1 Maximum Fine

(1) The Strata Corporation, and each separate section with respect to any bylaw or

rule that relates solely to such section, may fine an owner or tenant a maximum of:

(a) $200 for each contravention of a bylaw, and

(b) $50 for each contravention of a rule.

(2) Each owner is responsible for payment, upon invoice, of any money (other than

strata fees and special levies) owing to the Strata Corporation or the owner's section, as the case may be, as provided for in the Strata Property Act or these bylaws and if any owner fails to pay any money so owing within 15 days after the date such money becomes due, the owner will, after having been given written notice of the default and been provided with a reasonable opportunity to answer the complaint (including a hearing if requested), be assessed and pay a fine of $25.00, and if such default continues for a further 15 days, an additional fine of $50.00 will be levied against and paid by the owner and for each additional month such default continues, an additional fine of $50.00 will be levied against and paid by the owner

(3) Additional assessments, fines authorized by these bylaws, banking charges, filing costs, legal expenses, interest charges and any other expenses (including legal fees and disbursements) incurred by either the Strata Corporation or a separate section, as the case may be, to enforce these bylaws, as they may be amended from time to time, or any rule which may be established from time to time by the council or a section executive pursuant to the Strata Property Act of these bylaws, shall become part of the assessment of the owner responsible for the same and shall become due and payable on the first day of the month next following, except that any amount owing in respect of a fine or the cost of remedying the contravention of a bylaw will be calculated as a separate component of such assessment and the Strata Corporation may not register a lien in respect of such separate component.

5.2 Continuing Contravention

If an activity or lack of activity that constitutes a contravention of a bylaw or rule continues without interruption, for longer than 7 days, an additional fine may be imposed every 7 days for that same continuing contravention.

5.3 Small Claims Court Pursuant to section 171 of the Strata Property Act, the Strata Council, on behalf of the Strata Corporation, may commence a proceeding under the Small Claims Act against an owner or other person to collect money owing to the Strata Corporation without further authorization from the Strata Corporation. The Strata Council may commence the proceedings to collect monies owing to the Strata Corporation for any reason, including but not limited to monies owing by an owner or tenant for a fine or to recover the deductible portion of an insurance claim if the person is responsible for the loss or damage that gave rise to the claim. The Strata Council has full authority to negotiate a settlement or discontinue or dismiss the action.

PART 6 - ANNUAL AND SPECIAL GENERAL MEETINGS 6.1 Person to Chair Meeting

(1) Annual and special general meetings must be chaired by the president of the council.

(2) If the president of the council is unwilling or unable to act, the meeting must be chaired by the vice president of the council.

(3) If neither the president nor the vice president of the council chairs the meeting, a chair must be elected by the eligible voters present in person or by proxy from among those persons who are present at the meeting.

6.2 Participation by Other than Eligible Voters

(1) Tenants and occupants may attend annual and special general meetings, whether or not they are eligible to vote.

(2) Persons who are not eligible to vote, including tenants and occupants may participate in the discussion at the meeting, but only if permitted to do so by the chair of the meeting.

(3) Persons who are not eligible to vote including tenants and occupants, must leave the meeting of requested to do so by a resolution passed by a majority vote at the meeting.

6.3 Voting

At an annual or special general meeting, voting cards must be issued to eligible voters.

(1) At an annual or special general meeting a vote is decided on a show of voting cards, unless an eligible voter requests a precise count.

(2) If a precise count is requested, the chair must decide whether it will be by show of voting cards or by roll call, secret ballot or some other method.

(3) The outcome of each vote, including the number of votes for and against the resolution of the precise count is requested, must be announced by the chair and recorded in the minutes of the meeting.

(4) If there is a tie vote at an annual or special general meeting, there is no second, deciding vote, and any such resolution or motion shall be deemed to be defeated.

(5) Despite anything in this section, an election of council or any other vote must be held by secret ballot, if a secret ballot is requested by an eligible voter.

(6) An owner who is otherwise an eligible voter may not exercise his or her vote, except

on matter requiring a unanimous vote, if the Strata Corporation is entitled to register a lien against that owner's strata lot.

6.4 Order of Business The order of business at annual and special general meetings is as follows:

(a) certify proxies and corporate representatives and issue voting cards; (b) determine that there is a quorum; (c) elect a person to chair the meeting, in the absence of the president or vice president;; (d) present to the meeting proof of notice of meeting or wavier of notice; (e) approve the agenda; (f) approve minutes from the last annual or special general meeting; (g) deal with unfinished business; (h) receive reports of council activities and decisions since the previous annual

general meeting, including reports of committees, if the meeting is an annual general meeting;

(i) ratify any new rules made by the Strata Corporation; (j) report on insurance coverage, if the meeting is an annual general meeting; (k) approve the budget for the coming year, if the meeting is an annual general

meeting; (I) deal with new business, including any matter in which notice has been given; (m) elect a council, if the meeting is an annual general meeting (n) terminate the meeting.

6.5 Timing of Annual General Meetings

Subject to any delay contemplated in bylaw 7.6, the annual general meeting must be held within sixty (60) days of the fiscal year end of the Strata Corporation.

6.6 Quorum for Adjourned Meeting

Notwithstanding Section 48(3) of the Act, if within 1/2 hour from the time appointed for an annual or special general meeting a quorum is not present, the meeting shall be terminated if the meeting was convened upon a requisition of members; but in any other case, the meeting shall stand adjourned for a further 1/2 hour from the time appointed on the same day and at the same place and, if within one hour from the time appointed a quorum is not present for the meeting, the eligible voters present in person or by proxy shall constitute a quorum.

PART 7 - COMMON EXPENSES 7.1 Strata Fees

The strata lot owners' contributions to the common expenses of the Strata Corporation shall be levied in accordance with the Strata Property Act, the regulations to the Strata Property Act and these bylaws.

7.2 Section Fees

The contribution by an owner of a strata lot within a section to the expenses common to that section shall be levied in accordance with these bylaws.

7.3 Apportionment of Common Expenses

LCP Common expenses shall be apportioned between the sections and to all individual strata lots in the following manner:

(1) common expenses attributable to any one section shall be allocated to that section and shall be borne by the owners of the strata lots within that section in the proportion that the unit entitlement of such strata lot bears to the aggregate unit entitlement of the strata lots within that section;

(2) common expenses not specifically attributable to any section shall be for the account of the Strata Corporation and shall be allocated to all strata lots and shall be borne by the owners in proportion to the unit entitlement of their strata lot ;

(3) if a strata lot requires a utility or other service not supplied to all strata lots the cost

shall not be a common expense and if the utility or service is not separately metered or billed so as to measure the use thereof by the strata lot, the cost of such utility or service shall be apportioned and charged to the strata lot by the council on such reasonable basis as it shall determine.

7.4 Allocation of Specific Expenses between Sections

Without limiting the generality of bylaw 7.3 and unless otherwise determined by the executives of each section, acting reasonably, expenses relating to areas designated as limited common property for each section will be for the account of the owners of strata lots in each respective section.

7.5 Payment and Collection of Section Fees

(1) The executive of each section will prepare an annual budget of section expenses which is to be included as part of the annual budget prepared by the Strata Corporation for approval at annual general meetings. The strata fees payable by the owners in each section will include the fees owing to the Strata Corporation and the fees owing to the owner's separate section.

(2) Upon receipt each month of strata fees from the owners, the Strata Corporation will deposit into separate accounts that portion of such fees which is applicable to the operating fund of the Strata Corporation, the contingency reserve fund of the Strata Corporation, the operating fund of each section and the contingency reserve fund of each section.

(3) Only authorized signatories for a particular section will be entitled to withdraw funds from the operating fund and the contingency reserve fund of each section.

(4) Special levies approved by a section will be payable by the owners in such section to the Strata Corporation, which will deposit such special levy into the operating fund or the contingency reserve fund of such section, as requested by such section.

(5) As the request of a section, the Strata Corporation will register a lien against an owner's strata lot if the owner's section fees have not been paid to the Strata Corporation as part of such owner's strata fees or if a special levy approved by a section has not been paid by such owner.

7.6 Annual Budget Process

(1) The Strata Corporation will develop a proposed annual budget so as to ensure that sufficient operating funds and contingency reserve funds are allocated in the Annual Budget to the maintenance, repair and replacement of the common property, common assets and other common facilities and equipment, in order to allow the same to be maintained and operated at the standard consistent with a First Class Lakefront Resort. The budgets of each section will be incorporated into the Annual Budget. The Strata Council shall propose an annual budget (the "Proposed Budget"), which will then be circulated for consideration by the Strata owners at the Annual General Meeting.

(2) If a budget is not approved at an annual general meeting, the strata corporation

must within 30 days, or such longer period as approved by a resolution passed by a 3/4 vote at the meeting, prepare a new budget and place it before a special general meeting for approval by a resolution passed by a majority vote, such special general meeting to be held within 60 days of the annual general meeting.

(3) If a fiscal year to which a budget relates ends before a new budget is approved, the owners must, until the new budget is approved, continue to pay to the strata corporation the same monthly strata fees that they were required to pay under the Previous budget.

(4) Until a new budget is approved, the strata corporation may spend money out of the operating fund only in accordance with section 98 of the Strata Property Act.

(5) A financial audit for KAS 3058 The Cove Total Corporation will be conducted every two (2) years.

PART 8 - EXECUTIVE OF SEPARATE SECTIONS 8.1 Resort Lot Section Executive Size and Members

The executive of the Resort Lot Section must have at least 3 and not more than 7 members. A person other than an owner of a Resort Lot, an individual representing a corporate owner of a Resort Lot and/or a tenant of a Resort Lot may be a member of the executive of the Resort Lot Section provided such person falls within one of the following classes of persons:

(a) a spouse of an owner;

(b) a representative or advisor of an owner appointed by the owner in writing.

8.2 Commercial Section Executive Size and Members

(1) The executive of the Commercial Section shall have a minimum of 1 member.

8.3 Resort Management Section Executive Size and Members

(1) The executive of the Resort Management Section shall have a minimum of 1

member. 8.4 Executive Officers

(1) At the first meeting of the executive of a section held after each Annual General Meeting of that section, that executive must elect, from among its members, a president, a vice president, a secretary and a treasurer.

(2) A person may hold more than one office at a time, other than the office of president and vice president unless the executive consists of one member.

(3) The vice president has the powers and duties of the president:

(a) while the president is absent or is unwilling or unable to act, or (b) for the remainder of the president's term if the president ceases to hold office.

(4) If an officer other than the president is unwilling or unable to act for a period of 2 or more months, the members of that executive may appoint a replacement officer from among themselves for the remainder of the term.

8.5 Quorum of Executive

(1) A quorum of the executive of a section is:

(a) 1, if the executive consists of one member, (b) 2, if the executive consists of 2 or 3 members, and (c) 3, if the executive consists of 5 or more members.

(2) Executive members of a section must be present in person at the meeting of the executive of that section to be counted in establishing a quorum.

8.6 Application of Part 4

Articles 4.2, 4.3, 4.4, 4.6, 4.7, 4.9 to 4.15 of Part 4 apply mutatis mutandi to this Part 8 with such the term “executive” substituted for “council” as appropriate.

PART 9 - GENERAL BYLAWS

9.1 Use of Property - General

(1) An owner, tenant, occupant or visitor must not use a strata lot, the common property, including limited common property, or common assets in a way that: (a) causes a nuisance or hazard to another person, (b) causes unreasonable noise or disturbance, (c) interferes with quiet enjoyment of any portion of the strata plan or adjacent properties, (d) unreasonably interferes with the rights of other persons to use and enjoy the common property, common assets or another strata lot, (e) is contrary to any registered charge, provincial, federal or municipal

enactment, bylaw or regulation, or (f) is contrary to a purpose for which the strata lot or common property is intended as shown expressly or by necessary implication on or by the strata plan. (g) An owner, tenant, occupant or visitor must not cause damage, other than reasonable wear and tear, to the common property or common assets or those parts of a strata lot which the Strata Corporation must repair and maintain under these bylaws or insure pursuant to section 149 of the Act. The cost of any repairs to damage caused by owners, or their tenants’ occupants or visitors will be a debt due and immediately payable to the Strata Corporation by the owner of the strata lot charged and recovered from responsible strata lot owner. (2) Quiet Hours are from 11:00 pm until 7:00 am each day. Any noise which is audible from within another strata lot is deemed to be unreasonable if it occurs during Quiet Hours. (3) Owners and tenants, and resort management section must comply strictly with the bylaws and rules of the Strata Corporation adopted from time to time, and are responsible to ensure that their tenants, occupants, agents, employees, guests, visitors and invitees comply with the bylaws and rules. Owners and tenants must adequately supervise their children and the children of their guests and invitees to ensure each child’s safety, and compliance with the bylaws. (4) An owner, tenant, occupant or visitor must comply with all applicable fire regulations and

participate (if present) in drills for emergency evacuation of the building, as they are held from time to time, for the security of the building and its residents.

(5) All building keys, fobs, parkade gate openers, and similar devices which permit access to the common property remain the property of the Strata Corporation. (6) Entrance doors to building and strata lots must be kept closed and secured at all times when not in active use. An owner, tenant, occupant or visitor must not leave common exterior doors open unattended for any reason, and must not improperly obstruct common sidewalks, entrances, exits, halls, passageways, stairways and other parts of the common property. (7) An owner, tenant, occupant or visitor must not drop, throw, shake, hang or suspend anything from windows, doors, decks, railings, stairways or any portion of common property, including limited common property. (8) Anything affixed to the exterior of a strata lot, or to common property or limited common property constitutes an alteration, subject to bylaw 3.5 and/or 3.6 (10) No Strata Lot Owner may erect, place, keep or display signs, billboards, placards, flags, advertising matter or notice or display of any kind on the common property, limited common property or in a strata lot in any manner which may be visible from the outside of the strata lot without the prior written approval of the Strata Council. The Commercial Strata Lots and the Resort Management Strata Lot may erect signage designated for that purpose as limited common property on the Strata Plan and further may erect signage on their strata lots that may be required for their purposes provided such signage is approved for location, size and design by the Strata Council acting reasonably.

(11) Nothing may be used, stored or placed in a strata lot or on common property, including limited common property in such a manner that it creates a fire hazard. (12) An Owner may not allow waste, refuse or debris to accumulate within their strata lot, nor shall any person deposit waste, refuse or debris on common property, including limited common property. Sanitary disposal of household garbage and other refuse is the responsibility of each strata lot owner, tenant or occupant. Household garbage must be securely wrapped and placed only in designated receptacles and recyclable materials are to be placed in designated areas. Any other type of refuse must be removed from the property by the owner for proper disposal. Any expense incurred by the Strata Corporation to remove such refuse will be charged to the strata lot owner. (13) Each owner or owner’s agent is responsible to ensure that their strata lot is at all times outfitted with a properly functioning smoke detector with an audible alarm. The Strata Corporation will conduct annual testing of smoke detectors and replace smoke detectors whenever the need for replacement is brought to the attention of council. Owners who do not provide access to their strata lot when the annual inspection and testing is scheduled may be required to pay for re-inspection costs. (14) No commercial, professional or business activities are permitted within a residential strata lot or on common property, except for the production of art, crafts, or professional activity which is not apparent from outside of the strata lot and does not significantly increase vehicle or pedestrian traffic within the development. Nothing in this bylaw shall be construed to prevent the authorized rental of a strata lot, cleaning or other services provided to a strata lot owner or to the Strata Corporation, or activities which are normally incidental to typical residential use. (15) No laundry clothes or linens shall be hung to air or dry out of doors, and no clothes line or similar structure shall be erected or used within common property, including limited common property, or within a strata lot in a manner visible from outside of the strata lot (16) Smoking is not permitted anywhere within strata lots, enclosed or partially enclosed

portions of common property, within common property buildings, or within 3 meters of common property windows, doors or air intakes, within vehicles which are a common asset, or while in the parking garage either within a vehicle or otherwise. Smoking is not permitted in the pool or hot tub areas, or in any area designated to be smoke free by any regulation or statute of the Province of British Columbia.

(17) Waterbeds are not permitted within Strata Lots and if any loss or damage is caused or arises from a waterbed within a Strata Lot, the owner shall be responsible for any such loss or damage. (18) Grease, absorbent materials and other substances or objects likely to cause blockage shall not be disposed of down sinks, drains or toilets. (19) No bird feeders of any kind are permitted to be kept within a Strata Lot, on common property, including limited common property, or on land that is a common asset. (20) Hockey, rollerblading, bicycling, skate boarding and other play or sporting activities are prohibited within the bounds of the strata plan except in any area designated for such

activity by the Strata Council. (21) An owner, tenant, occupant or visitor must not use common property electrical outlets without permission of council, except that parking area outlets may be used while vacuuming an owner, tenant or occupant’s vehicle. (22) An owner, tenant, occupant or visitor must ensure that all entrance doors to strata lots are kept closed when not in use, and the kitchen exhaust fans are used when cooking. (23) Each owner, tenant and occupant must ensure that drapes or blinds visible from the

outside of the building are cream or white in color. Reflective silver and gold metallic films, aluminum foil, paper or other materials are not to be applied or affixed to windows or used as window shades or blinds.

(24) An owner, tenant, occupant or visitor must not display, affix or erect fixtures, poles, racks, storage sheds or similar structures permanently or temporarily on common property, limited common property, or land that is a common asset, except as specifically permitted by these bylaws, and as permitted by the council. Despite the foregoing, the placing of the following items on the limited common property balconies shall be permitted: (a) Freestanding, self-contained planter boxes or similar plant containers, hanging baskets or window boxes (excluding fruit and vegetable plants), securely fastened to ensure safety, (b) Patio furniture and accessories (25) An owner, tenant or occupant must not use or permit any part of the strata lot, limited

common property, common property, or land that is a common asset to be used as a site for cultivating, manufacturing, packaging, processing, dispensing, selling or distributing cannabis, cannabis-derived products or related products and accessories and/or any controlled substances (whether licensed or otherwise). For clarity, this bylaw does not restrict an owner, tenant or occupant from processing cannabis, cannabis-derived products and related products and accessories for personal use, under federal and provincial legislation.

9.2 Moving In / Out Procedures (1) A resident must provide notice to the Strata Corporation of all moving arrangements at least 48 hours before the moving date. All moves must take place between 8:00 a.m. and 8:00 p.m. (2) A resident using the elevator during a move must ensure that the elevator service key is used to control the elevator and the doors not jammed open in any manner. (3) Residents must ensure that the lobby doors are not left open, ajar or unattended and that furniture and/or personal property are not left within the common property unattended. (4) A resident must ensure that all common areas are left damage free, clean and all

hallways and lobby areas vacuumed immediately upon completion of the move. All empty packing boxes, packing materials and paper and any other containers must be removed from common property. 9.3 Pets (1) An owner must not keep any pets in or on a strata lot or on common property, including

limited common property, except in accordance with this bylaw. A tenant, occupant, visitor or guest must not keep or bring any pets in or on a strata lot or on common property, including limited common property unless such pet has been registered with the hotel and is not kept in a non-pet suite.

(2) An owner, tenant or occupant must not have any pets or other animals within a strata lot, on common property, limited common property, or on land that is a common asset other than up to two dogs (which must be licensed in accordance with municipal requirements) or one cat (which must be kept indoors);

(3) Notwithstanding the foregoing, any dog which has ever attacked a human being or

another animal without provocation, or any dog which is identifiable as being entirely or partly composed of an “aggressive” breed including but not limited to “American Pit Bull Terrier”, “Staffordshire Bull Terrier”, “American Staffordshire Terrier”, any “Bull Dog”, or “Rottweiler” are not permitted.

(4) A pet is not allowed in any of the following locations at any time:

(a) Restaurant or Restaurant Patio (b) in the hot tubs or pool water or their surrounding areas.

(5) A pet is only allowed on common property, including limited common property, subject to the following conditions: (a) The pet is securely leashed with a lead not exceeding six feet in length, or properly

secured within an appropriate container. (b) The pet is under the control of a responsible owner, tenant, occupant or visitor at all

times when on common property. (c) The responsible owner, tenant, occupant or visitor must ensure that the pet does not

void on common property and must immediately clean up after the pet in case of an accident.

(d) The responsible owner, tenant, occupant or visitor must ensure that the pet does not create a disturbance.

(e) The responsible owner, tenant, occupant or visitor must ensure that the pet does not enter onto limited common property assigned for the exclusive use of another owner.

(f) Pets may only be transported in an elevator when the elevator is not being used by other persons.

(6) It is the responsibility of each strata lot owner to ensure that the pets belonging to the

owner or their co-occupants shall not cause a nuisance to any resident, damage to any strata lot, common property, or personal property, or injury or death. The strata lot owner or section in the case of rental must fully indemnify the Strata Corporation for any liability

incurred as a result of the pet’s presence within the bounds of the strata plan, including the Strata Corporation’s legal costs on a "solicitor and own client" basis, regardless of whether the owner or section had knowledge, notice or forewarning of the likelihood of such action

(7) If the Strata Council receives a complaint about a pet, a bylaw enforcement hearing will be held in accordance with the provisions of the Strata Property Act. The Strata Council may take no action, fine the owner, require the person to pay the costs of remedying the contravention, or order the immediate removal of the pet from the strata lot in which case the pet must be immediately removed. The owner of the pet will be advised about the outcome of the hearing in writing.

9.4 Commercial Operations, Sports Equipment, Storage, Parking

(1) The owners of the Commercial Strata Lot 1, Strata Lot 2, Strata Lot 3 and Strata Lot 4 shall, so far as is commercially reasonably possible, keep their operation open at all normal business times during the year.

(2) Any owner, tenant, occupant of a strata lot or guest, employee, agent or invitee of any owner or occupant, that leaves any item anywhere on or in the common property or on any limited common property does so at his or her own risk.

(3) Water skis, wakeboards, tow tubes, snow skis, snowboards, sleds and other similar sports equipment are not permitted in any Resort Strata Lot, but must be stored within the limited common property storage areas of the Resort Strata Lot or such other storage area as may be prescribed by the council or executive is provided or arranged by the Manager, and owner of a Resort Lot may only store such equipment in the equipment storage room or limited common property of the Resort Strata Lot designated as such.

(4) Bicycles and tricycles may only be stored in basement storage areas and are not permitted on limited common property, including decks or patios, nor may they be transported through common areas that are carpeted or the elevators.

(5) No boat or boat trailer storage or parking is permitted in the underground parkade or on the surface parking lot.

(6) A resident must not store any hazardous or flammable substances in storage lockers.

(7) Contents in storage lockers shall be inside the lockers. No storage shall be permitted on top of storage lockers.

(8) One storage locker per unit may be assigned by Strata Council

(9) Owners, tenants, occupants and visitors may only drive and park vehicles within the bounds of the Strata Plan in compliance with the following provisions:

(a) All vehicles within the bounds of the Strata Plan must be properly licensed and

insured for travel on public roads, or if stored, insured for storage with at least 2 million dollars of third party liability coverage. Proof of insurance must be provided to the Strata Corporation on the commencement date of the storage, and any time at the request of the Strata Council. Despite anything in these

bylaws, vehicles not currently licensed for travel on public roads may not be stored in outside parking spots.

(c) The Strata Council may assign one inside parking space to each strata lot that is not registered in a hotel rental management contract. (d) Outside parking when available is restricted to owners and visitors displaying valid parking tags, and temporary parking for trades-people and contractors. (e) No vehicle may enter, traverse or park upon any part of common property not specifically designated for the purpose.

(f) All reasonable precautions must be taken when exiting or entering the parkade to

prevent unauthorized entry by others and to prevent damage to any vehicle by the parkade gate.

(g) Propane powered vehicles and vehicles with external storage tanks for diesel or any other fuels may not be parked or operated in the parkade at any time. (h) Designated parking areas within common property may only be used for the parking of passenger vehicles and may not be used for the storage of any other items. Parking areas may not be used as work areas for carpentry, renovations or other repairs (including, but not exhaustively, sawing, drilling and the use of any adhesive or hardening compounds). No mechanical repairs, motor tune ups or servicing of motor vehicles involving automotive fluids or paints may be performed within the bounds of the strata plan. Motor vehicles must be maintained in such a manner that they do not leak fluids. Any spill or leak must be cleaned up by the owner of the vehicle immediately. Owners and residents must keep their assigned parking stalls clean, tidy and free from debris. (i) Owners, tenants, occupants and visitors must not permit any oversized vehicle, commercial or recreation vehicles including boats, trailers and campers to enter upon, park or be stored in common property or land that is a common asset, except that delivery vehicles and service vehicles are permitted to use common property roads and lanes only for the duration of the delivery or service provided. (j) Visitors’ vehicles which are not parked in an owner’s limited common property must be parked in a designated visitor parking area. It is the responsibility of owners, tenants and occupants to ensure that their visitors’ vehicles parked in any visitor parking area display a clearly visible and valid parking tag in a form approved by council. Residents must not park in visitor parking spaces. (k) Vehicle operation and parking is at the sole risk of the vehicle owner, and the Strata Corporation makes no representation with respect to safety of the vehicle, passengers or contents. The Strata Corporation shall not be liable for any theft or other injury, loss or damage related to the operation or parking of a vehicle within the bounds of the strata plan. (l) Any resident's or visitor's vehicle parked in violation of these bylaws may be subject to removal by a towing company authorized by council, and all costs associated with such removal will be the responsibility of the owner of the

vehicle. (m) no employee of any unit owner or commercial unit, or contractor to any unit owner or commercial unit, shall park in the underground parkade.

9.5 Use of Common Property and Common Facilities

The development in which the strata lots are located is a Condominium Resort Project and the Resort Strata Lots and certain rights of the owners of the Resort Strata Lots to the common property and common facilities are subject to rental pool management agreements (the "Agreements") in favor of a rental pool operator and Resort Manager (the "Manager") for the mutual benefit of all owners, The Manager and its employees, agents, contractors and permittees and all guests (The "Guests") of the Resort shall at all times have access to and use of all portions of the common property and common facilities as are reasonably required by the Manager for the operation and enjoyment of the Resort from time to time, as determined by the Manager, acting reasonably, including, without limitation, the parking garage and parking stalls, all common areas and common facilities within the building (including, without limitation, the swimming pool, hot tubs, exercise room and all other common recreational facilities, laundry rooms, storage lockers, storage rooms, closets and equipment storage areas). The Manager shall be entitled to set up and maintain within the common property and works and facilities as are reasonably required by the Manager in connection with the operation of the Resort and the rental pool, including, without limitation, signage, a concierge desk, automatic bank teller machines, coin or bill operated vending machines, in-suite cable TV, in-suite movies, video game or internet access systems, satellite television systems (including exterior mounted satellite dishes), exterior mounted cellular antennae and telephone systems. All bylaws and rules of the Strata Corporation and the sections shall be consistent with the operation and maintenance of the development as a Resort in accordance with the standards of a First-Class Lakefront Resort and otherwise as a contemplated in the Agreements so that they will not impair, interfere with or adversely affect such operation. In the event of any conflict or inconsistency between the provisions of the Agreements, then the provisions of the Agreements will govern to the extent of such conflict or inconsistency. In addition, and notwithstanding anything to the contrary contained in the bylaw or rules of the Strata Corporation or a section, the owners will not do any act or thing and shall cause the Strata Corporation to refrain from-doing any act or thing which may impair, interfere with or limit the ability of the Manager to operate or maintain the development as a resort in accordance with the standards of a First-Class Lakefront Resort and otherwise as contemplated in the Agreements.

9.6 Insurance (1) The Strata council is authorized to take out and maintain on behalf of the Strata

Corporation such property, liability and other insurance, in such amounts, as Council may deem necessary or appropriate and in accordance with the usual practice of a First-Class Lakefront Resort, provided it shall at least satisfy the insurance obligations of the Strata Corporation pursuant to the Strata Property Act. The cost of any such insurance will be a common expense. The Strata Council is hereby authorized to borrow funds for the purpose of paying the annual insurance premium over a period not to exceed 12 months, inclusive of full repayment of principal and interest.

(2) An owner is deemed to be responsible for any loss or damage caused to the common

property, limited common property, common assets or to any strata lot, personal injury, death or any other loss or damage; where the original cause of any such loss or damage originated within the owner’s strata lot or an occupant’s vehicle and to the extent that the loss or damage is not fully paid from the proceeds of an insurance policy. (3) An owner is also deemed to be responsible for any loss or damage to the common property, limited common property, common assets or to any strata lot, personal injury, death or any other loss or damage where the cause of any such loss or damage is the result of an act, omission, negligence or carelessness of the owner, and/or owner’s tenants, occupants, employees, agents, visitors or invitees, and to the extent that the loss or damage is not fully paid from the proceeds of an insurance policy. (4) If any loss or damage deemed to be the responsibility of an owner under subsection (2) and/or (3) of this bylaw results in a claim against any insurance policy held by the Strata Corporation; that owner is strictly liable to reimburse the Strata Corporation for the full amount of any insurance deductible, any portion of insurance coverage declined and/or any amount by which the loss or damage exceeds the insurance coverage. That owner shall indemnify and save harmless the Strata Corporation for these amounts. (5) If any loss or damage deemed to be the responsibility of an owner under subsection (2) and/or (3) of this bylaw does not exceed the insurance deductible for an insurance policy held by the Strata Corporation; that owner is strictly liable and shall fully indemnify and save harmless the Strata Corporation for any resulting expense for maintenance, repair or replacement rendered necessary, which it is the Strata Corporation’s responsibility to perform. (6) If an owner is deemed or determined to be responsible for any insurance deductible, any loss or damage to the common property, limited common property, common assets or to any strata lot, personal injury, death or any other loss or damage whatsoever pursuant to these bylaws, the owner must fully indemnify the Strata Corporation for all reasonable legal expenses incurred in relation to defending any related claim against the Strata Corporation, and/or prosecuting any claim made against the owner, such indemnity to be on a solicitor and own client basis, including legal fees, disbursements, expenses, taxes, filing and/or Court fees, all on a full indemnity basis. (7) Owners are responsible to ensure that their strata lot interior is maintained at a minimum temperature of 10 degrees centigrade year-round. Any water pipe leak, burst or any other loss or damage whatsoever which the Strata Council reasonably determines resulted from or is contributed to by an owner’s failure to comply with this bylaw shall constitute loss or damage which is deemed to be the responsibility of that owner pursuant to these bylaws, whether the loss or damage occurs within that owners’ strata lot, within adjacent common property, or within an adjacent strata lot. (8) The Strata Corporation may arrange emergency damage mitigation and restoration where damage has been done within a strata lot, and the costs of gaining access to the strata lot, and preventing further damage may be paid as a common expense of the Strata Corporation until such a time as the Strata Council is able to determine whether the expense will be: (a) Covered by strata insurance; (b) Treated as a common expense of the Strata Corporation;

(c) Charged back to the owner of the affected strata lot; or (d) Charged back to the strata lot where the source of the damage originated. 9.7 Common Facilities and Limited Common Property

The swimming pools, waterslide, and hot tubs for the resort are limited common property for the Resort Strata Lots. The guests of the Commercial Strata Lots who are not registered guests of the Resort may only use these facilities with permission of the council.

The possession or consumption of alcohol at the pool side bar and cabana/fire pit areas of the Resort Management Strata Lot shall be subject to the provisions of the Liquor Control and Licensing Act of British Columbia.

The Marina is not a common asset or a common facility, and may only be used by owners or their guests in accordance with such rules and regulations, and payment of fees, as may be prescribed from time to time, by the owner of the Resort Management Strata Lot.

PART 10-BYLAW RESTRICTIONS

10.1 Bylaw Restrictions

No section will act or pass any bylaw or rule which:

(1) would have an effect of prohibiting, preventing or impairing any owner, tenant or occupant of any Commercial Strata Lot or limited common property designated by the Commercial Section or the Resort Management Strata Lot or limited common property designated by Resort Management Strata Lot from fully utilizing that strata lot or limited common property for commercial purposed in accordance with the applicable zoning bylaws and rules and regulations of the Regional District of Central Okanagan in effect from time to time or encumbrances registered against title to the applicable strata lot;

(2) restrict the hours of operation of any business carried on within any Commercial Strata Lot or any limited common property designated to the Commercial Section or to any Commercial Strata Lot or the Resort Management Strata Lot or limited common property designated by Resort Management Strata Lot;

(3) restrict access by the owner, tenant or occupant of a strata lot, or any guest, employee, customer, agent or invitee of an owner, tenant or occupant, to or from that strata lot across common property or limited common property designated for the section of which the strata lot is a part, unless such bylaw or rule also applies to the owners, tenants and occupants, and their respective guests, employees, customers, agents and invitees of owners, tenants and occupants, of all strata lots in the Strata Corporation or the section, as the case may be, or

(4) prohibit, prevent or impair the ability of an owner, tenant or occupant of any Commercial Strata Lot or the Resort Management Strata Lot from leasing, subleasing, granting a license, entering into any lease, sublease, or license arrangement with respect to the use of any Commercial Strata Lot Resort Management Strata Lot or any limited common property designated to such strata lot, PROVIDED THAT Strata Council approval is required, acting reasonably, to

ensure that any proposed change in owner/tenant or type of business to be undertaken is in keeping with a first class resort.

PART 11 -VOLUNTARY DISPUTE RESOLUTION 11.1 Voluntary Dispute Resolution

(1) A dispute among owners, tenants, occupants, the Strata Corporation, a section or any combination of them may be referred to a dispute resolution committee by a party to the dispute if:

(a) all the parties to the dispute consent, and (b) the dispute involved the Strata Property Act, the regulations, the bylaws or

the rule.

(2) A dispute resolution committee consists of:

(a) one owner or tenant of the Strata Corporation nominated by each of the disputing parties and one owner or tenant chosen to chair the committee by the persons nominated by the disputing parties, or

(b) any number of persons consented to, or chosen by a method that is consented to, by all the disputing parties.

(3) The dispute resolution committee must attempt to help the disputing parties to voluntarily end the dispute.

PART 12 - INTERPRETATION 12.1 Defined Terms All terms defined in the Act and used in these bylaws will have the meanings given to them in the Act unless otherwise defined in these bylaws or the context required otherwise. 12.2 Severability

(1) Should any portion of these bylaws be deemed unenforceable by any court of competent jurisdiction, then for the purposes of interpretation and enforcement of the bylaws, each paragraph, sub-paragraph or clause hereof shall be deemed a separate provision and severable, and the balance of the provisions contained herein shall remain in full force and effect. (2) For the purposes of all bylaws, wherever the singular or masculine is used, it shall be construed as meaning the plural or feminine or body corporate where the context requires. The terms “resident” or “residents” refer to those individuals residing in the building, whether as owners, tenants or other occupants. (3) For the purposes of all bylaws, reference to “common property” shall include but shall

not be limited to “limited common property” unless a contrary intention is specified. This Schedule of Consolidated Bylaws is for private purposes only, and is NOT the official version. Neither Associated Property Management (2001) Ltd. nor the strata corporation warrant the accuracy or the completeness of this Schedule of Consolidated Bylaws and in no event will Associated Property Management (2001) Ltd. or the strata corporation be liable or responsible for damages of any kind arising out of the use of this Schedule of Consolidated Bylaws.

Persons who need to rely on the text of the strata corporation’s bylaws for legal and other purposes may obtain the official amendments to bylaws from the Kamloops Land Title Office, 114-455 Columbia Street, Kamloops, BC V2C 6K4, Tel: 250-628-4455.