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REAL ESTATE DEVELOPMENT MARKETING ACTDisclosure Statement of

VIDORRA DEVELOPMENTS LTD.Disclosure Statement dated: May 29, 2018

Developer: Vidorra Developments Ltd.

Address for Service in British Columbia: 15, 1005 Alpha Lake RoadWhistler B.C. V0N 1B1

Business Address for the Developer: 15, 1005 Alpha Lake RoadWhistler, BC V0N 1B1

Developer’s Real Estate Agent:RE/MAX Sea to Sky Real Estate Whistler106-7015 Nester’s RoadWhistler, B.C. , V0N 1B7

DISCLAIMERS

This Disclosure Statement has been filed with the Superintendent of Real Estate, but neither the Superintendent, nor any other authority of the government of the Province of British Columbia, has determined the merits of any statement contained in the Disclosure Statement, or whether the Disclosure Statement contains a misrepresentation or otherwise fails to comply with the requirements of the Real Estate Development Marketing Act. It is the responsibility of the developer to disclose plainly all material facts, without misrepresentation.

This Disclosure Statement relates to a development property that is not yet completed. Please refer to section 7.2 of this Disclosure Statement for information on the purchase agreement. That information has been drawn to the attention of ____________________________, who has confirmed that fact by initialing in the space provided here:

Initial

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RIGHT OF RESCISSIONUnder section 21 of the Real Estate Development Marketing Act, the purchaser or lessee of a development unit may rescind (cancel) the contract of purchase and sale or contract to lease by serving written notice on the developer or the developer’s brokerage, within 7 days after the later of the date the contract was entered into or the date the purchaser or lessee received a copy of this Disclosure Statement.A purchaser may serve a notice of rescission by delivering a signed copy of the notice in person or by registered mail to:

(a) the developer at the address shown in the disclosure statement received by the purchaser,

(b) the developer at the address shown in the purchaser’s purchase agreement,(c) the developer's brokerage, if any, at the address shown in the disclosure

statement received by the purchaser, or(d) the developer's brokerage, if any, at the address shown in the purchaser’s

purchase agreement.The developer must promptly place purchasers' deposits with a brokerage, lawyer or notary public who must place the deposits in a trust account in a savings institution in British Columbia. If a purchaser rescinds their purchase agreement in accordance with the Act and regulations, the developer or the developer's trustee must promptly return the deposit to the purchaser.

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POLICY STATEMENT 5

As disclosed in section 6.1, of this Disclosure Statement, the Developer has not yet received a building permit to construct the Development. The Superintendent of Real Estate permits the Developer to market the development units only on complying with the following terms and conditions:

(a) The estimated date, as disclosed in the disclosure statement, for the issuance of a building permit, is 9 months or less from the date the developer filed the disclosure statement with the superintendent.

(b) The developer markets the proposed development units under the disclosure statement for a period of no more than 9 months from the date the disclosure statement was filed with the superintendent, unless an amendment to the disclosure statement that sets out particulars of the issued building permit is filed with the superintendent during that period. The developer must also either:

(i) prior to the expiry of the 9 month period, file with the superintendent an amendment to the disclosure statement that sets out particulars of the issued building permit; or

(ii) upon the expiry of the 9 month period, immediately cease marketing the development and confirm in a written undertaking to the superintendent that all marketing of the development has ceased and will not resume until after the necessary amendment has been filed, failing which a cease marketing or other order may be issued by the superintendent to the developer without further notice.

Additionally, the developer must provide written notice without delay to the superintendent if, during the 9 month period, all units in the development property being marketed under this Policy Statement are sold or the developer has decided not to proceed with the development.

(c) Any purchase agreement used by the developer, with respect to any development unit offered for sale or lease before the purchaser’s receipt of an amendment to the disclosure statement that sets out particulars of the issued building permit, contains the following provisions:

(i) The purchaser may cancel the purchase agreement for a period of seven days after receipt of an amendment to the disclosure statement that sets out particulars of the issued building permit if the layout or size of the applicable development unit, the construction of a major common facility, including a recreation centre or clubhouse, or the general layout of the development, is materially changed by the issuance of the building permit;

(ii) If an amendment to the disclosure statement that sets out particulars of an issued building permit is not received by the purchaser within 12 months after the initial disclosure statement was filed, the purchaser may at his or her option cancel the purchase agreement at any time after the end of that 12 month period until the required amendment is received by the purchaser, at which time the purchaser may cancel the purchase agreement for a period of seven days after receipt of that amendment only

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if the layout or size of the applicable development unit, the construction of a major common facility, including a recreation centre or clubhouse, or the general layout of the development, is materially changed by the issuance of the building permit;

(iii) The amount of the deposit to be paid by a purchaser who has not yet received an amendment to the disclosure statement that sets out particulars of an issued building permit is no more than 10% of the purchase price; and

(iv) All deposits paid by a purchaser, including interest earned if applicable, will be returned promptly to the purchaser upon notice of cancellation from the purchaser.

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POLICY STATEMENT 6

As disclosed in section 6.2 of this Disclosure Statement, the Developer has not yet received a financing commitment to construct the Development. The Superintendent of Real Estate permits the Developer to market the development units only on complying with the following terms and conditions:

(a) The estimated date for obtaining a satisfactory financing commitment, as disclosed in the disclosure statement, is 9 months or less from the date the developer filed the disclosure statement with the superintendent.

(b) The developer markets the proposed development units under the disclosure statement for a period of no more than 9 months from the date the disclosure statement was filed with the superintendent, unless an amendment to the disclosure statement that sets out particulars of a satisfactory financing commitment is filed with the superintendent during that period. The developer must also either:

(i) prior to the expiry of the 9 month period, file with the superintendent an amendment to the disclosure statement that sets out particulars of a satisfactory financing commitment; or

(ii) upon the expiry of the 9 month period, immediately cease marketing the development and confirm in a written undertaking to the superintendent that all marketing of the development has ceased and will not resume until after the necessary amendment has been filed, failing which a cease marketing or other order may be issued by the superintendent to the developer without further notice.

Additionally, the developer must provide written notice without delay to the superintendent if, during the 9 month period, all units in the development property being marketed under this Policy Statement are sold or the Developer has decided not to proceed with the development.

(c) Any purchase agreement used by the developer, with respect to any development unit offered for sale or lease before the purchaser’s receipt of an amendment to the disclosure statement that sets out particulars of a satisfactory financing commitment, contains the following terms:

(i) If an amendment to the disclosure statement that sets out particulars of a satisfactory financing commitment is not received by the purchaser within 12 months after the initial disclosure statement was filed, the purchaser may at his or her option cancel the purchase agreement at any time after the end of that 12 month period until the required amendment is received by the purchaser;

(ii) The amount of the deposit to be paid by a purchaser who has not yet received an amendment to the disclosure statement that sets out particulars of a satisfactory financing commitment is no more than 10% of the purchase price; and

(iii) All deposits paid by a purchaser, including interest earned if applicable, will be returned promptly to the purchaser upon notice of cancellation from the purchaser.

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TABLE OF CONTENTS

1. THE DEVELOPER ..........................................................................................................71.1 Incorporation ..........................................................................................................71.2 Assets ....................................................................................................................71.3 Registered Office ...................................................................................................71.4 Directors.................................................................................................................71.5 Background............................................................................................................71.6 Conflicts of Interest ................................................................................................8

2. GENERAL DESCRIPTION..............................................................................................92.1 General Description of the Development................................................................92.2 Permitted Use ........................................................................................................92.3 Phasing ..................................................................................................................9

3. STRATA INFORMATION ................................................................................................93.1 Unit Entitlement......................................................................................................93.2 Voting Rights........................................................................................................103.3 Common Property and Facilities ..........................................................................103.4 Limited common property.....................................................................................103.5 Bylaws..................................................................................................................113.6 Parking.................................................................................................................123.7 Furnishings and Equipment..................................................................................123.8 Budget .................................................................................................................123.9 Utilities and Services ............................................................................................133.10 Strata Management Contracts .............................................................................133.11 Insurance .............................................................................................................133.12 Rental Disclosure Statement................................................................................14

4. TITLE AND LEGAL MATTERS......................................................................................144.1 Legal Description .................................................................................................144.2 Ownership............................................................................................................144.3 Existing Encumbrances and Legal Notations .......................................................144.4 Proposed Encumbrances .....................................................................................144.5 Outstanding or Contingent Litigation or Liabilities.................................................154.6 Environmental Matters .........................................................................................15

5. CONSTRUCTION AND WARRANTIES ........................................................................155.1 Construction Dates...............................................................................................155.2 Warranties ...........................................................................................................155.3 Previously Occupied Building ...............................................................................16

6. APPROVALS AND FINANCES .....................................................................................166.1 Development Approval .........................................................................................166.2 Construction Financing.........................................................................................16

7. MISCELLANEOUS........................................................................................................167.1 Deposits ...............................................................................................................167.2 Purchase Agreement ...........................................................................................177.3 Developer’s Commitments ...................................................................................187.4 Other Material Facts.............................................................................................18

8. EXHIBITS......................................................................................................................19

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1. The Developer

1.1 Incorporation

The Developer was incorporated under the laws of British Columbia on February 23, 2016, under incorporation number BC1065774.

1.2 Assets

The Developer was specifically incorporated for the purpose of developing properties including the Development. The Developer owns other properties in British Columbia.

1.3 Registered Office

The registered office of the Developer is:

#15 1005 Alpha Lake Road, Whistler B.C. V0N 1B1

1.4 Directors

The directors of the Developer are Rod Nadeau and Ned Johnson.

1.5 Background

There are no offices of the Developer

1.5.1 To the best of the Developer’s knowledge, the following is some background information on the development experience of the Developer and of the directors and officers of the Developer:

(a) The Developer

The Developer has developed a 45 unit rental property in Pemberton B.C. The experience of each of the directors of the Developer is described below.

(b) Rod Nadeau

Mr. Nadeau has been involved in residential and commercial developments since October 1985 and the types of developments he has previously been involved with have been residential, mixed use residential and commercial properties. Mr. Nadeau has significant experience with duplexes and large multi-million dollar single family homes in Whistler, British Columbia. Mr. Nadeau was also involved in the development of a 48 unit condo hotel and a 60 unit townhouse project in Golden, British Columbia at Kicking Horse Mountain Resort, and of the Rainbow subdivision in Whistler.

(c) Ned Johnson

Mr. Johnson has been involved in residential developments since 1991 and the types of developments he has previously been involved with have been custom single family homes, multi-family projects and mixed multi-family residential and commercial properties. Mr. Johnson was also involved in the development of a 48 unit condo hotel

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and a 60 unit townhouse project in Golden, British Columbia at Kicking Horse Mountain Resort.

1.5.2 To the best of the Developer’s knowledge:

(a) none of the Developer, or any person holding, directly or indirectly, more than 10% of any class of voting securities of the Developer, or any director or officer of any of the foregoing, within the 10 years prior to the date of the Director’s declarations attached to this Disclosure Statement, has been subject to any penalties or sanctions imposed by a court, or regulatory authority, relating to the sale, lease, promotion or management of real estate or securities, or to lending money secured by a mortgage of land, or to arranging, administering or dealing in mortgages of land, or to theft or fraud;

(b) none of the Developer, or any person holding, directly or indirectly, more than 10% of any class of voting securities of any such person, or any director or officer of the foregoing, within the five years prior to the date of the Developer’s declarations attached to this Disclosure Statement was declared bankrupt or made a voluntary assignment in bankruptcy, made a proposal under any legislation relating to bankruptcy or insolvency, or has been subject to or instituted any proceedings, arrangement or compromise with creditors or had a receiver, receiver-manager or trustee appointed to hold the assets of that person; and

(c) no director or officer nor any person holding, directly or indirectly, more than 10% of any class of voting securities of the Developer (“Principal Holder”), or any director or officer of any such Principal Holder, within the five years prior to the date of the Developer’s declarations attached to this Disclosure Statement, has been a director, officer or held, directly or indirectly more than 10% of any class of voting securities of any other developer that, while that person was acting in that capacity, that other developer:

(i) was subject to any penalties or sanctions imposed by a court, or regulatory authority relating to the sale, lease, promotion or management of real estate or securities, or to lending money secured by a mortgage of land, or to arranging, administering or dealing in mortgages of land, or to theft or fraud; or

(ii) was declared bankrupt or made a voluntary assignment in bankruptcy, made a proposal under any legislation relating to bankruptcy or insolvency or been subject to or instituted any proceedings, arrangement or compromise with creditors or had a receiver, receiver manager or trustee appointed to hold the assets of that person.

1.6 Conflicts of Interest

The Developer is not aware of any existing or potential conflicts of interest among the Developer, manager, or any director or officer or any person holding, directly or indirectly, more than 10% of any class of voting securities of any such person, any director or officer of any person holding, directly or indirectly, more than 10% of any class of voting securities of the Developer or manager, or any person providing goods or services to the Developer, manager or holders of the Strata Lots in connection with the Development that could reasonably be expected to affect the purchaser’s purchase decision.

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2. General Description

2.1 General Description of the Development

The strata lots being offered for sale pursuant to this Disclosure Statement are located at 7350 Crabapple Court Pemberton B.C. and comprise 45 residential strata lots (the “Strata Lots”) in a 45 unit development described herein, consisting of a one-level underground concrete parking garage, with three levels of wood frame residential units above (the “Development”). The Strata Lots will be owned individually. Each Strata Lot owner will also own a proportionate share, as tenant in common with all other Strata Lot owners, in the common property of the Development and other assets of the strata corporation formed with respect to the Development (the “Strata Corporation”) pursuant to the Strata Property Act.

The Development will be constructed substantially in accordance with the plans and specifications prepared by Dennis Maguire (the “Architect”) and submitted to the Village of Pemberton (“Village”) in connection with the Developer’s application for a development permit, as they may be supplemented from time to time and as more fully described in the plans and specifications approved by the Village on issuance of a building permit for the Development. The Developer may make modifications in features, design, layout, window area and window location and may substitute materials of an equal or better grade, all as recommended or approved by the Architect from time to time.

2.2 Permitted Use

The Development Property is zoned Commercial 3 (“Zoning Bylaw”). A copy of the Bylaw is available from the Village of Pemberton at 7400 Prospect Street Pemberton B.C. V0N 2L0. The permitted use of the Strata Lots will be residential use and auxiliary use, being a use that is ancillary or subordinate and customarily incidental to the principal use. Under the Zoning Bylaw there are a number of permitted uses as listed on the copy of portions of the C3 Bylaw attached as Exhibit 1. The commercial uses include restaurants, arts and crafts shops, hotel, country inn, personal service establishment, recreational and leisure storage container and accessory uses.

2.3 Phasing

The Development will not be a phased development.

3. Strata Information

3.1 Unit Entitlement

The Unit Entitlement of each Strata Lot is a figure indicating its share in the Common Property and assets of the Development and is used to determine each Strata Lot's contribution to the expenses incurred in respect of the Common Property and the other assets of the Strata Corporation.

The Unit Entitlement is based on the habitable area of each Strata Lot, excluding any areas such as the garage an exterior balcony, terrace, or deck or planter. A proposed schedule of Unit Entitlement for the Strata Lots in Form V under the Strata Property Act (“Proposed Unit Entitlement Schedule”) is attached as Exhibit “B”. The calculation of unit entitlement shown on the Proposed Unit Entitlement Schedule is based on the Preliminary Strata Plan, and may vary

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slightly when calculated on the basis of the final surveyed strata plan. If any proposed strata lots are divided or combined as described in section 2.1, the unit entitlement of the resulting strata lots will be approximately equal to the unit entitlement shown on the Proposed Unit Entitlement Schedule for the divided or combined strata lots. The final Form V will be filed in the Land Title Office concurrently with the deposit of the strata plan.

3.2 Voting Rights

There will be one Strata Corporation in respect of the Strata Lots. Each Strata Lot will have one vote in the Strata Corporation pursuant to section 53(1) of the Strata Property Act.

3.3 Common Property and Facilities

The Developer intends to include for the benefit of the purchasers of the Strata Lots the following facilities within the Common Property of the Development:

ElevatorSecured underground parkingGarbage facilities

(together “Common Facilities”).

The approximate size and location for some of these facilities are indicated on the Preliminary Strata Plan. The Developer reserves the right to:

(a) increase or decrease the size of the Common Facilities by no more than 35%;

(b) modify the parking areas to increase or decrease the number and layout of parking stalls; and

(c) alter the configuration and location of the Common Facilities;

all without compensation to the Strata Corporation and/or the purchasers of the Strata Lots.

The Development will also include additional service facilities and equipment such as transformers, fire protection systems and equipment, mechanical and electrical systems and equipment, electrical room, vents, ducts, fans, elevators, garage gates and other such facilities and equipment which may not be depicted on the Preliminary Strata Plan, but which will be required by the Municipality in connection with the Development (collectively, the "Service Facilities"). The Service Facilities will be located as required by the Municipality or as recommended by the Developer's consultants.

3.4 Limited common property

(a) limited common property on the Strata Plan

Limited common property is an area within the Common Property that may be used exclusively by one or more Strata Lot owners and any additional maintenance expense created thereby will be dealt with in accordance with the bylaws of the Strata Corporation as described in section 3.4(d). A designation of limited common property on the strata plan may only be removed by unanimous resolution of the members of the Strata Corporation.

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(b) Parking as described in Section 3.6;

(c) Decks.

The Developer will designate as limited common property the decks and parking approximately as set out on the preliminary strata plan.

Such designations will be shown on the final strata plan (the "Filed Strata Plan") for the Development deposited for registration in the Land Title Office. The Developer reserves the right to increase or decrease the size of decks by no more than 35%, and to alter the configuration and layout of the decks all without compensation to the Strata Corporation and/or purchasers of the Strata Lots.

(d) Maintenance of Common Property/limited common property

The Strata Corporation is responsible for maintaining all Common Property including limited common property, except as set out in the Strata Corporation bylaws. The bylaws provide that the owners of the Strata Lots are responsible for maintaining and repairing limited common property which they use, other than the following items which are to be maintained and repaired by the Strata Corporation:

(a) repair and maintenance that in the ordinary course of events occurs less often than once a year;

(b) the structure of a building;

(c) the exterior of a building;

(d) chimneys, stairs, balconies and other things attached to the exterior of a building;

(e) doors, windows or skylights, on the exterior of a building or that front on the Common Property; and

(f) fences, railings and similar structures that enclose patios, balconies and yards.

Common expenses of the Strata Corporation that relate to repairing and maintaining limited common property are allocated only to those Strata Lots entitled to use that limited common property, and shared among such Strata Lots on the basis of their relative Unit Entitlement. Any special levy, however, which relates to limited common property will be paid for by the owners of all Strata Lots in proportion to the relative Unit Entitlement of the Strata Lots.

3.5 Bylaws

The bylaws of the Strata Corporation will be those attached as Exhibit “C” to this Disclosure Statement, which will be filed in the Land Title Office concurrently with the deposit of the Strata Plan. Section 1.4.4 of the Bylaws restricts pets to one or more of the following:

(a) a reasonable number of fish or other small aquarium animals;

(b) a reasonable number of small caged mammals;

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(c) up to 2 caged birds;

(d) two dogs or two cats or one dog and one cat.

3.6 Parking

There will be:

(a) 28 parking stalls on the garage level of the building designated on the strata plan as limited common property;

(b) 15 surface parking stalls located in carports, designated on the strata plan as limited common property;

(c) 2 surface parking stalls designated on the strata plan as limited common property; and

(d) 28 surface visitor parking stalls located on the common property.

The visitor parking stalls will be administered by the Strata Corporation.

3.7 Furnishings and Equipment

The following equipment will be included in the purchase of each Strata Lot: Fridge, stove, dishwasher, washer/dryer, microwave hood fan.

The above items will not be encumbered except to the extent of any security documentation registered in the Land Title Office and/or the Personal Property Registry, including without limitation, the Construction Security (as defined in Section 6.2) and any general security agreements granted by the Developer. The Developer will obtain discharges or releases of all third party claims of security interests granted by the Developer to equipment located in a StrataLot in connection with the sale of the Strata Lot to a purchaser. Social Services Tax, Goods and Services Tax payable in respect of such equipment will be for the account of each purchaser of a Strata Lot.

3.8 Budget

(a) Estimated Initial Budget and Monthly Assessments

The estimated initial annual budget for the Strata Corporation for the 12 month period commencing on the first day of the month following the date of the first conveyance of a Strata Lot to a purchaser is attached as Exhibit “D” (“Initial Budget”). The Developer will pay the actual expenses of the Strata Corporation until and including the last day of the month in which the first conveyance of a Strata Lot to a purchaser occurs. The Initial Budget sets out the estimated monthly strata fees for each Strata Lot.

The actual monthly strata fees will be calculated upon finalization of the Unit Entitlement and monthly strata fees will be further adjusted upon the establishment by the Strata Corporation of the first annual budget of operating expenses following the first annual general meeting of the Strata Corporation.

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(b) Cost of Utilities and Other Services

The electricity supplied to the Strata Lots will not be separately metered for each Strata Lot and will be the responsibility the Strata Corporation. The cost of the electricity for and all water will be paid by the Strata Corporation and the cost will be borne by the owners of the Strata Lots and included in their monthly strata fees.

3.9 Utilities and Services

The Development is located within the Municipality and is served by water, sewer, electricity, telecommunications, fire protection and public road access. The Developer will install a propane tank which will be used to operate water boilers and heaters in the parkade. Natural gas will not be provided to the Development

3.10 Strata Management Contracts

The Developer intends to enter into a strata management contract on behalf of the Strata Corporation. The manager will not be related to the Developer. In addition to any termination provisions contained in the management agreement, under Section 24 of the Strata Property Act (British Columbia) the management agreement:

(a) will terminate automatically four weeks after the second annual general meeting of the Strata Corporation, unless the Strata Corporation by majority vote, at the second annual general meeting, resolves to continue the agreement;

(b) may be terminated by the Strata Corporation on two months’ notice if the cancellation is approved by a ¾ vote at a general meeting of the Strata Corporation; and

(c) may be terminated by the Manager on two months’ notice.

3.11 Insurance

The Developer will obtain the following insurance coverage in the name of the Strata Corporation for a term expiring no sooner than four weeks after the first annual general meeting of the Strata Corporation:

(a) full replacement insurance on the Common Property, common assets, buildings shown on the Strata Plan and fixtures built on or installed in the Strata Lots by the Developer as part of the original construction (meaning items attached to a building, including floor and wall coverings and electrical and plumbing fixtures, but excluding, if they can be removed without damage to the building, refrigerators, stoves, dishwashers, microwaves, washers, dryers or other similar items); and

(b) liability insurance for property damage and bodily injury in an amount not less than $2,000,000.

The items described in section 3.11(a) will be insured against major perils, including fire, lightning, smoke, wind storm, hail, explosion, earthquake, water escape, strikes, riots or civil commotion, impact by aircraft and vehicles, vandalism and malicious acts, subject to standard

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exclusions. Each purchaser will be responsible for insuring personal property within and any improvements made to that purchaser’s Strata Lot.

3.12 Rental Disclosure Statement

Under Section 139 of the Strata Property Act, the Developer must disclose to any purchaser the intention to lease any residential strata lot in order to preserve the right of the Developer and the first purchaser from the Developer of a strata lot to lease the strata lot in the future. A rentaldisclosure statement in respect of the Strata Lots has been filed by the Registered Owner, a copy of which is attached as Exhibit “E”.

4. Title and Legal Matters

4.1 Legal Description

The Development Property, on which the Development will be constructed, is legally described as:

PID 025-587-901 Lot 4 District Lot 203 Lillooet District Plan KAP7231

4.2 Ownership

The Developer is the registered and beneficial owner of the Development Property.

4.3 Existing Encumbrances and Legal Notations

(i) KV13206 Covenant in favour of the Village prohibiting residential development and storage in underground storage units located below the prescribed geodesic elevation of 209.2m or 0.6m above the finished adjacent ground surface, whichever is greater;

(ii) KV94497 Statutory Right of Way in favour of British Columbia Hydro; This right of way permits construction and maintenance of poles, anchors, guy wires, brackets, transformers, cables, conduits, pipes, ducts and all things related to the transmission or provision of utilities by BC Hydro;

(iii) KV94498 Statutory Right of Way in favour of Telus Communications; permits construction and maintenance of poles, anchors, guy wires, brackets, transformers, cables, conduits, pipes, ducts and all things related to the provision of utilities by Telus; and

(iv) Mortgage CA5728044 and Assignment of Rents CA5728045 granted to Vancouver City Savings Credit Union. The mortgage and assignment of rents will be replaced by the construction financing to be placed pursuant to Section 6.2

4.4 Proposed Encumbrances

The following additional encumbrances may be registered against title to the Development Property, the Strata Lots or the Common Property:

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(a) Covenants, easements, statutory rights of way and/or agreements to be granted with and/or in favour of the Village , public utilities, adjacent property owners or other entities with respect to the provision of utilities (including electrical services) and communications services to the Development.

(b) All encumbrances required or deemed necessary by the Village and/or the Province of British Columbia to be registered against title to the Development Property in order to obtain development, building and occupancy permits in respect of the Development.

(c) One or more mortgages and assignments of rents securing the construction financing described in section 6.2 (the “Construction Security”), which will be partially discharged from title to each Strata Lot within a reasonable time following the completion of the purchase and sale of that Strata Lot.

4.5 Outstanding or Contingent Litigation or Liabilities

There is no outstanding or contingent litigation or liability in relation to the Development Property or against the Developer which may affect the Strata Corporation or the Strata Lot purchasers.

4.6 Environmental Matters

The Developer is not aware of any dangers related to flooding, soil and subsoil conditions or other environmental matters affecting the Development Property.

5. Construction and Warranties

5.1 Construction Dates

The estimated date range for commencement of construction is between June 1, 2018 andAugust 31, 2018. The estimated date range for completion of construction is between February 1, 2020 and April 30, 2020.

5.2 Warranties

The Developer will obtain home warranty insurance coverage for the Strata Lots and the Common Property, which will provide the following coverage to purchasers pursuant to the requirements of the Homeowner Protection Act (British Columbia):

(a) defects in workmanship and materials for a period of two years after the date on which the warranty begins;

(b) water penetration coverage of 5 years after the date on which the warranty begins; and

(c) structural defects for a period of 10 years after the date on which the warranty begins.

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Any applicable manufacturer’s warranty on furniture, furnishings and equipment included in the purchase price of a particular Strata Lots or relating to the Development will be passed on to the Strata Corporation, if permitted by such warranty.

5.3 Previously Occupied Building

The Development has not been previously occupied.

6. Approvals and Finances

6.1 Development Approval

On May 16, 2018 the Village issued a Development Permit under number 012.

6.2 Construction Financing

The Developer has not, as of the date of this disclosure statement, arranged development financing which is sufficient to complete the construction and servicing of the Development. As noted on the front pages of this Disclosure Statement, the Developer must file an amendment to the Disclosure Statement when it has arranged for sufficient financing to complete the construction and servicing of the Development. Termination rights of a purchaser if the Developer fails to obtain construction financing within a specified period are described on the front pages of this Disclosure Statement under Policy Statement 6.

7. Miscellaneous

7.1 Deposits

The Developer’s real estate agent is RE/MAX Sea to Sky Real Estate Whistler (the “Agent”). Deposits from purchasers will be held by the Agent as trustee (the “Trustee”) in the manner required by the Real Estate Development Marketing Act, until the strata plan is deposited in the Land Title Office and an instrument evidencing the interest of the purchaser has been submitted for registration in the Land Title Office.

The Developer may at any time elect to enter into a deposit protection contract, which is an insurance contract or other form of security agreement with an approved insurer as required by the Real Estate Development Marketing Act, pursuant to which the Deposits or any portion thereof may be released to the Developer. Under the provisions of the deposit protection contract the insurance company will guarantee the obligations of the Developer to the Purchaser with respect to the Purchase Agreement. Should the Developer not be able to deliver the Strata Lot to the Purchaser for which a deposit has been received, insured and released from trust, the insurance company shall repay the deposit or deliver the Strata Lot and complete the sale.

In accordance with the provisions of Section 19 of the Real Estate Development Marketing Act, when the Trustee receives the original or a true copy of the deposit protection contract in relation to the deposit it holds under the Purchase Agreement and the Developer’s written certification that the purchaser has no right to rescission under section 21 of that Act, the Trustee must pay the deposit to the Developer and the Developer may use that deposit only for purposes related to the Development, including without limitation construction and marketing of the Development.

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7.2 If the Developer elects to enter into a deposit protection contract it will provide a notice to the Purchaser setting out the name and address of the insurer, the name of the developer who entered into the deposit protection contract and the date on which the insurance takes effect.

7.3 Purchase Agreement

The Developer intends to use the form of Purchase Agreement attached as Exhibit “F”(“Purchase Agreement”).

As required by the Superintendent of Real Estate, certain provisions in the Purchase Agreement are described below. However, purchasers should read the Purchase Agreementbefore signing it and should not rely solely on the description below. Where there is a difference between the information in this Disclosure Statement and the executed Purchase Agreement, the Purchase Agreement will prevail.

All goods and services tax or harmonized sales tax (including both the federal and provincial portions) payable with respect to the purchase and sale of a Strata Lot will be for the account of the Purchaser.

(a) Termination Provisions.

The Purchaser may cancel the Purchase Agreement if the Developer has not obtained a building permit and a financing commitment sufficient to complete construction of the Development within 12 months of the date on which this Disclosure Statement is filed.

Under section 4 of Schedule A of the Purchase Agreement, if the Completion Date (as defined therein) has not occurred by December 31, 2020 (the “Outside Completion Date”), the Purchase Agreement will be terminated provided that if the Developer is delayed in completing construction of the Development as a result of events or circumstances beyond the Developer’s control, the Outside Completion Date will be extended for a period equivalent to any such period of delay.

Under section 17 of Schedule A to the Purchase Agreement, if the Developer is not satisfiedwith the level of presales by December 15, 2018, it may cancel the Purchase Agreement at any time on or before December 31, 2018.

(b) Extension Provisions.

Section 4 of Schedule A to the Purchase Agreement provides that if the Developer is delayed from time to time in completing construction of the Development as a result of events or circumstances beyond the Developer’s control, the time in which the Developer must do anything under the Purchase Agreement is extended for a period equivalent to the period of delay, and specifically the Outside Completion Date is extended for such period.

There are no provisions in the Purchase Agreement which allow the purchaser to require or refuse an extension of the Completion Date or which allows the Developer to seek a fee or increased purchase price in order to agree to any such extension.

(c) Assignment Provisions.

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Under section 15 of Schedule A to the Purchase Agreement, a purchaser may not assign the purchaser’s interest in the Purchase Agreement without the written consent of the Developer, which consent may be arbitrarily withheld and payment of a fee to the Developer. If the assignment is to a spouse, a parent, an adult child of the Purchaser, or a corporation wholly owned by the Purchaser (which the Purchaser is required to provide a statutory declaration identifying the relationship of the proposed assignee to the Purchaser), or the Purchaser is an employee of the Developer, then the Purchaser will be required to pay an administrative fee of $500 to the Developer.

(d) Interest on Deposits.

Under section 2 of Schedule A to the Purchase Agreement, interest on deposit monies, if any,will be for the benefit of the Purchaser, unless the Purchaser defaults in any of the Purchaser’s obligations under the Purchase Agreement, in which case interest on deposit monies, if any, will be paid to the Developer. In any event, there is no obligation on the Developer to invest deposit monies in an interest-bearing account.

Each prospective purchaser who wishes to purchase a Strata Lot must, after receiving and reviewing this Disclosure Statement, execute the Purchase Agreement, pay the initial deposit to the Agent “in trust” concurrently with submitting the Purchase Agreement to the Agent for acceptance, and pay all other deposits and the balance of the purchase price for the Strata Lot in accordance with the Purchase Agreement; and

All deposits must be paid by certified personal cheque, bank draft or money order acceptable to the Developer and the party receiving the same in trust.

7.3 Developer’s Commitments

Not applicable.

7.4 Other Material Facts

The Developer has not entered into any contracts with respect to the Development other than those described herein, but the Developer may enter into or cause the Strata Corporation to enter into or assume the following agreements:

(a) any agreements referred to in section 4.4;

(b) elevator servicing agreement;

(c) maintenance and lease agreements with respect to equipment installed on the Common Property, including alarm monitoring;

(d) landscaping agreement;

(e) garbage/waste removal services agreement;

(f) snow clearing; and

(g) janitorial and cleaning.

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8. Exhibits

The exhibits attached to this Disclosure Statement are as follows:

Exhibit “A” Preliminary Strata Plan

Exhibit “B” Preliminary Schedule of Unit Entitlement

Exhibit “C” Strata Bylaws

Exhibit “D” Initial Budget

Exhibit “E” Rental Disclosure Statement

Exhibit “F” Purchase Agreement

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EXHIBIT “A”PRELIMINARY STRATA PLAN

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EXHIBIT “B”SCHEDULE OF UNIT

ENTITLEMENT

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EXHIBIT “C”STRATA BYLAWS

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EXHIBIT “D”INTERIM BUDGET

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EXHIBIT “E”RENTAL DISCLOSURE STATEMENT

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EXHIBIT “F”PURCHASE AGREEMENT

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