GVRC Property Management Agreement

PROPERTY MANAGEMENT AGREEMENT

THIS AGREEMENT dated for reference the 1st day of December 2017

Between:

THE OWNERS, STRATA PLAN 765

THE OWNERS, STRATA PLAN 773

THE OWNERS, STRATA PLAN 813

THE OWNERS, STRATA PLAN 945

THE OWNERS, STRATA PLAN 1508

CAMEO CO-OPERATIVE HOUSING ASSOCIATION

FREDERICK JOHN KEEGAN

HONG PHAN

DONALD JAMES EATON and JOHANNE FRANCE EATON

SHERYL MAJOCHA

EDWARD AND JANICE HARTLEY

(the "Owners")

And:

CAMEO CO-OPERATIVE HOUSING ASSOCIATION

(the "Manager").

WHEREAS:

1. The Owners are the owners of the building municipally known as the Glentana Village Recreation Centre which, with related facilities including, without limitation, an outdoor basketball court and a parking area on the parcel of land on which all is erected (collectively referred to as the "Building"), being that parcel of land in the Town of View Royal, Province of British Columbia legally describer as Parcel Identifier 001-070-274, Lot B, Section 2, Esquimalt District, Plan 31482;

2. The Owners desire to have the Manager manage the Building and the Manager has agreed to accept such appointment as agent of the Owners:

IN CONSIDERATION of the sum of $1 paid by each of the parties to the other (the receipt and sufficiency of which is acknowledged by each party), the mutual covenants contained in this agreement and other good and valuable consideration, the Owners appoints the Manager and the Manager accepts this appointment as managing agent for the Owners of the Building on the terms and conditions as set forth:

1. Term

The term of this agreement shall extend from December 1, 2017 for a period of 1 one year period and thereafter shall continue in full force and effect from year to year unless terminated by notice in writing given by either party to the other on not less than three months’ written notice.

2. Manager's Responsibilities

The Manager agrees and the Owner authorizes the Manager to manage the Building on behalf of the Owner during the term of this agreement in a faithful, diligent and honest manner and to enter into such contracts and agreements as agent of the Owner as may be necessary in the performance by the Manager of the following duties:

(1) to provide user co-ordination services including the review of use and rental applications, to prepare use and rental agreements, to negotiate with users regarding any modification to the terms of such use agreements and to sign the agreements on behalf of the Owners;

(2) to supervise the use of the Building;

(3) to use its best efforts to arrange for performance of all covenants, duties and obligations of the Owners pursuant to all agreements which are in effect during the currency of this agreement in so far as such performance is consistent with the terms of this agreement;

(4) to diligently pursue and take all reasonable measures to remedy all breaches of agreements and, when it deems appropriate, to initiate court processes or arrange for them to be initiated with respect to seeking remedies from a court of competent jurisdiction;

(5) to collect all rents and Goods and Services Tax (“G.S.T.”), deposits, maintenance and other charges payable by the users of the Building and all subsidy payments due form the Owners and any other moneys to which the Owners may be entitled in connection with its operation, to maintain a careful vigilance over the collection of all receivables, to arrange in so far as is reasonably possible that all such amounts are paid when due and on their collection to deposit them in an account for the Owners in the name of the Glentana Village Recreation Centre in a Canadian chartered bank or credit union (the “GVRC Account”);

(6) to hire in its own name but at the Owners’ expense, supervise and dismiss as may be necessary from time to time all persons required (subject to any budgetary

limitation agreed on with the Owners) for the proper operation and maintenance of the Building and its equipment, it being agreed that the Manager may perform any of its duties pursuant to this agreement through the employment of such persons by the Manager at the Owners’ expense;

(7) to maintain proper payroll records with respect to all persons engaged to work at the Building in accordance with subparagraph (6) above and to make all payroll reports and returns required by law and to remit to the proper authorities all deductions and payments for income tax, G.S.T., employment insurance, Canada Pension Plan, Workers' Compensation and any other deductions or payment which may from time to time be applicable to any such persons or their employer or both;

(8) to direct and supervise any persons employed pursuant to this agreement, for the operation and maintenance of any heating, ventilating, air-conditioning and other equipment in the Building and to arrange for any technical instruction of the persons employed at the Building which may be required for the proper operation and maintenance of such equipment;

(9) to specify duties and arrange for the preparation of any work schedules necessary to direct the activities of any persons employed to work at the Building and to provide such supervision as may be reasonably necessary in the Manager's opinion to verify the adequacy with which any duties and work is being performed;

(10) to arrange for the supply, as may be required, of electricity, water, telephone and other services and to arrange through use of Building employees or independent contractors as in each instance may seem the more desirable for the effective and economical operation, maintenance and repair of the Building and its equipment (including, without limitation, any heating, ventilating, air-conditioning, plumbing and electrical equipment) as deemed desirable by the Manager or so as to comply with the enforcement of any regulations and requirements of which the Manager is notified by the local board of health, police and fire departments and any other municipal, provincial and federal authorities, having jurisdiction, which affect the Building and, without limiting the generality of the foregoing, such arrangements shall include (where applicable to the Building) those for janitor service and any other cleaning, including windows, building security and ice removal, landscaping and grounds maintenance, painting and redecoration, alterations and any supervision and maintenance necessary in connection with any swimming pool or other recreational area;

(11) to arrange for the payment (subject to the availability of funds) of service and municipal tax obligations and to co-operate with the Owners and their legal or other appointed representatives in connection with initiating and processing of any appeals regarding municipal tax assessments levied against the Building;

(12) to arrange for any insurance coverage required by the terms of this agreement, to negotiate on behalf of the Owners the terms of any policies for fire and other perils or hazards, rental income, plate glass, public liability, fidelity, money loss, boiler and machinery and any other insurance which may from time to time be recommended by the Manager relative to the Building;

(13) generally to do and perform and, where desirable, contract (either in its own name or the Owners’ name as the Manager in each instance may elect) for all things desirable or necessary for the proper and efficient management of the Building (including the giving of proper attention to any complaints and endeavouring as far as is economical to reduce waste) and to perform every other act whatsoever in or about the Building to carry out the intent of this agreement provided, however, that the Manager shall not authorize any work, repairs, alterations or redecoration estimated to cost in excess of $1,000 for any one item without first obtaining the Owners’ approval to proceed with such work except for monthly or recurring operating charges or unless the Owner's approval is already implied by the approval of budget estimates, except that if any such work is urgently required to be done and failure to do such work which would cause personal injury or damage to the Building or its equipment or contents or which could impair the value of the Owners’ investment at a time when the Owners or their duly authorized representatives cannot be reasonably located for the purpose of giving approval for such work, or if failure to do such work might expose either the Owners or the Manager, or both to the imposition of penalties, fines, imprisonment or any other liability, then the Manager is authorized to proceed with any such work as it in its absolute discretion reasonably determines to be urgently necessary for the protection and preservation of the Building or its equipment or contents or the Owners’ investment therein or to protect the Owners or the Manager from exposure to fines, penalties, imprisonment or any other liability;

(14) to prepare and present to the Owners an annual budget for their approval and, until the adoption of a new budget in or about September, 2017 to adhere to the budget previously adopted for the management of the Building for the 2017/2018 fiscal year;

(15) to treat all Owners (including all owners of strata lots within a strata corporation owner and all members of the Manager) on an equal basis, with respect to their use and rental of the Building; and

(16) to take control of and preserve in a prudent manner all of the Owners’ assets related to the Building and its contents, including all historical files and safe deposit box.

3. Management of Moneys Held in GVRC Account

The Manager shall be entitled and have the right to disburse from the moneys from time to time held by it in the GVRC Account all costs and expenses incurred in providing the services agreed on in paragraph 2 of this agreement.

4. Accounting

The Manager shall keep and maintain at a location designated from time to time by the Owners full, detailed and proper records regarding all financial transactions involved in the management of the Building and shall forward to the Owners on or before the thirtieth day of each calendar quarter a statement of receipts and disbursements showing all rentals and other moneys collected and receivable and all disbursements made during the preceding calendar quarter; all such records shall be made available to the Owners and the Owners’ auditors or other designated representatives at reasonable times whenever requested. The manager shall also provide the owners with annual financial statements prepared with a review engagement by an independent accountant.

5. Compensation

The Owners agrees to pay the Manager as compensation for the management services rendered by the Manager as mentioned under this agreement a fee of $1.00 (exclusive of any G.S.T.), which fee is payable annually, and the Manager is authorized to deduct and retain the compensation each year during the currency of this agreement, so long as the Manager is not in default hereunder, from the moneys held by it in the GVRC Account.

6. Manager's Right to Represent Owner in Legal Procedures

The Manager shall have the right on behalf of the Owners, but is under no obligation to do so, to commence any action or other legal proceeding or to take any legal remedies available for the recovering of any owing and unpaid rent or other monies, to settle, compromise or discontinue any such proceeding and to enter and, in connection with all of the foregoing, shall have the right as attorney of the Owners, and the Owners

appoint the Manager as their attorney to execute any and all documents which it may consider necessary or desirable to enable it to fully carry out the powers granted to it. The Manager shall be entitled to charge as a disbursement pursuant to the provisions of paragraph 2 of this agreement all collection expenses incurred hereunder including all legal fees and any other expenses.

7. Limitation on Manager's Liability

The Manager shall not be liable to the Owners for any arrears in the collection of rentals or other payments due from tenants or any one with respect to the operation of the Building or as a result of any damage or other loss affecting the Building or the operation of its equipment, or for any error in judgment or for anything which it may do or refrain from doing unless any resulting damage, loss, injury or liability has been caused by the negligence, breach, act, omission, fault or default of the Manager or those for whom it is in law responsible; nor shall the Manager be liable to the Owners for failure to perform any of the obligations set forth in this agreement if such failure is occasioned by or results from destruction or damage to the Building by fire or other cause, a strike or lockout, a civil commotion or disturbance, an act of God, a supervening illegality or any other act or cause which is beyond the reasonable control of the Manager except if due to the negligence, breach, act, omission, fault or default of the Manager or those for whom it is in law responsible.

8. Appointment of Manager as Agent of Owners

The Owners hereby appoint the Manager as the as their agent and attorney to execute any and all documents which the Manager may consider necessary or desirable to enable it to fully carry out the powers granted to it by this agreement.

9. Owner's Indemnity

The Owners shall, during and after the termination of this agreement, indemnify and save the Manager completely free and harmless from any and all damages or injuries to persons or property, or claims, actions, obligations, liabilities, costs, expenses and fees arising from any cause whatsoever (except if due to the negligence, breach, act, omission, fault or default of the Manager or

those for whom it is in law responsible), provided the Manager is carrying out the provisions of this agreement or is acting on the subsequent directions of the Owners.

10. Manager's Indemnity

The Manager shall, during and after the termination of this agreement, promptly indemnify and save the Owners completely free and harmless from any and all damages or injuries to persons or property, or claims, demands, actions, obligations, liabilities, costs, expenses and fees by reason of the negligence, breach, act, omission, fault or default of the Manager or those for whom the Manager is in law responsible.

11. Insurance

The Owners agree to take out or authorize the Manager to arrange for comprehensive liability insurance on the Building and further agrees that the Manager shall be named as an insured party along with the Owners in any such policy or policies which shall provide protection against any claims for personal injury, death or property damage or loss in the event that either the Owners or the Manager shall be held liable as a result of their respective obligations as Owners and Manager of the Building.

12. Indemnification

Notwithstanding anything to the contrary contained in this agreement, under no circumstances shall the Manager be liable to the Owners for the amount of any loss or damage to the Building or its contents, against which the Owners are insured and thereby entitled to indemnification from its insurer(s) but only to the extent of such indemnification actually received by the Owners.

13. Termination

On termination of this agreement:

(1) The Manager shall within fifteen days thereafter render a final accounting to the Owner and turn over the GVRC Account (less any amounts necessary to satisfy commitments made by the Manager to others prior to the date of termination) to such persons as the Owners may designate.

(2) The Manager shall immediately surrender to the Owners all lease agreements and other files, records, contracts and information which may be requested by the Owners and which are pertinent to the continuing operation of the Building.

(3) The Owners shall assume the obligations of any and all contracts which the Manager has bona fide made for the purpose of arranging the services to be provided pursuant to this agreement.

14. Enurement

This agreement shall enure to the benefit of and be binding on the parties, their respective heirs, executors, administrators, successors and assigns as the case may be.

IN WITNESS WHEREOF the parties have executed this agreement on the date first written above.

The Owners, Strata Plan 765 The Owners, Strata Plan 773

by its authorized signatories: by its authorized signatories:

________________________ ________________________

________________________ ________________________

The Owners, Strata Plan 813 The Owners, Strata Plan 945

by its authorized signatories: by its authorized signatories:

________________________ ________________________

________________________ ________________________

The Owners, Strata Plan 1508 Cameo Co-operative Housing Assoc.

by its authorized signatories: by its authorized signatories:

________________________ ________________________

________________________ ________________________

Frederick John Keegan, Hong Phan, Donald James Eaton, Johanne France Eaton, Sheryl Majocha, Edward and Janice Hartley, by their authorized agent(s):