RIGHT TO USE AGREEMENT (BETWEEN CO-OWNERS / TENANTS IN COMMON OF INVESTMENT OR VACATION PROPERTY) THIS AGREEMENT made effective as of the _____ day of ______________, _______. BY AND BETWEEN: [LIST NAMES and ADDRESSES OF ALL TENANTS IN COMMON] (individually, a “Co-Owner”, and collectively the “Co-Owners”) together with their respective executors, administrators, mortgagees-in-possession and assigns RECITALS: A. Each of the Co-Owners is, or is entitled to become, registered as a tenant in common on the title to the land (the “Property”) which is more particularly described in Schedule A attached hereto; B. The Co-Owners agree that their individual ownership interests in the Property are in the proportions as set out in Schedule B attached hereto; C. The Co-Owners wish to set out their various rights and obligations with respect to the Property as set out in this Agreement. NOW THEREFORE THIS AGREEMENT WITNESSES that in consideration of the mutual covenants and agreements contained in this Agreement and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged by the parties, the parties hereby agree as follows: 1. Interpretation Wherever used throughout this Agreement: (a) references to persons include corporations and vice versa; (b) words importing the singular number include the plural number and vice versa; (c) words importing the masculine gender include the feminine and neuter genders and vice versa; (d) a reference to any of the parties by their defined terms includes that party’s executors, administrators and permitted assigns, or, if a company, its successors and permitted assigns; (e) every agreement or undertaking expressed or implied by which two or more persons agree or undertake any obligation or derive any benefit under this Agreement binds or benefits those persons jointly and each of them severally; (f) paragraph headings are for convenience of reference only and shall not affect the construction or interpretation of this Agreement; (g) any and all Schedules attached to this Agreement are incorporated by reference and are deemed to be part of this Agreement. 2. Exclusive Use (a) The Co-Owners acknowledge and agree that each Co-Owner shall be entitled to the exclusive use and occupation of the entire Property during that period (if any) set out beside their name in Schedule C attached hereto (the “exclusive use”). Any mortgagee, lessee, licensee or other person authorized by the Co-Owner entitled to an exclusive use of all or any portion of the Property will be entitled to the exclusive use and occupation of that area subject to compliance with the provisions of this Agreement. -2- (b) The Co-Owners acknowledge that any existing utilities which exclusively service the Property during a period of exclusive use: (i) shall remain at all times in their present position; and (ii) will be maintained at the cost and expense of the Co-Owner which has the exclusive use of them. (c) If no periods of exclusive use are set out in Schedule C, or if such periods cover less than 100% of the calendar year, then the Property shall be made available for leasing to third parties during the unused period(s) of the calendar year, and the Co-Owners shall severally share the net income from such leasing in proportion to their ownership interests in the Property. (d) Each Co-Owner shall be at liberty to lease the Property to a third party during his or her period of exclusive use, and the net income from such sub-lease shall be paid to the subject Co-Owner; provided, however, that any costs for damages, loss or otherwise arising from the negligence or misuse of the Property, furnishings and chattels therein by such third party shall be deducted from the sub-lease income prior to its being paid to such Co-Owner. 3. Ownership Control (a) Each Co-Owner will have decision making control over all matters in connection with the Property pro rata in proportion to their ownership interests as set out in Schedule B; (b) Each of the Co-Owners covenants and agrees with the others not to apply to any court having jurisdiction for an order for partition or sale of the Property. 4. Maintenance of the Property (a) Joint Maintenance. The Co-Owners will jointly maintain the Property, or contribute jointly to the maintenance of the Property, pro rata in proportion to their ownership interests as set out in Schedule B; (b) Insurance. The Co-Owners will effect public liability insurance coverage on the Property in an amount not less than FIVE MILLION DOLLARS ($5,000,000.00), and agree to pay for such coverage pro rata in proportion to their ownership interests as set out in Schedule B; (c) Common Costs. Each Co-Owner will pay as and when required all common costs in respect of the Property (including without limitation all taxes, assessments, levies, and other charges with respect to the Property by any municipal, [state/provincial] or federal authority, and all costs of maintaining the common property) pro rata in proportion to their ownership interests as set out in Schedule B. In the event that any Co-Owner fails to pay his or her share of any common cost on the due date and another Co-Owner elects to pay such defaulting Co-Owner’s share, the defaulting Co-Owner will pay to the other Co-Owner, in addition to the amount which he or she should have initially paid, interest on that amount at the rate of ____% per annum calculated on daily balances from the date on which the cost was paid by the other Co-Owner until the date of actual payment by the defaulting Co-Owner. (d) Compliance With Law: Each Co-Owner, at his or her own cost, will maintain and fully comply with and observe all statutes, ordinances, by-laws and regulations and fully comply with the requirements of all relevant authorities relating to the use and occupation of the Property during any period of exclusive use. Each Co-Owner will be responsible for, and indemnifies and holds harmless the other Co-Owners against, any action, suit, claim, loss or demand arising from the Co-Owner’s failure to comply with this provision and any other loss or liability arising from any act, neglect or omission of that Co-Owner or of that Co-Owner’s family, invitees, servants, agents, contractors or tenants. (e) Leasing Income. In the event that the Property is generally leased for any portion of the calendar year during which no periods of exclusive use occur, the leasing income (after deduction of all -3- relevant expenses and agent’s commissions, if any) shall be divided among the Co-Owners pro rata in proportion to their ownership interests as set out in Schedule B. 5. Property Manager [delete this section if no property manager is being retained] (a) The Co-Owners agree to appoint the Property Manager named in Schedule ___ hereto, or such alternate or substitute Property Manager as a majority of the parties hereto from time to time decide, or in default of which, the Property Manager from time to time of the strata or condominium plan of which the Property forms a part, as their agent for the purpose of arranging and managing the day-to-day care, maintenance and operations of the Property and all the ordinary and usual business affairs associated therewith, including (without limitation) any necessary repairs to the Property and its furnishings and chattels; general leasing of the Property to third parties; arranging insurance coverage; and collecting and remitting all leasing or sub- leasing income to the Co-Owner(s) entitled thereto. (b) The address for service of all the Co-Owners shall be the address of the Property Manager, who shall be and is hereby instructed by all of the Co-Owners to provide each of them with a copy of any correspondence, notice or other documents mailed to or served upon the Co-Owners. (c) The Property Manager shall be directed to perform the following duties: (i) to manage the Property in accordance with the terms of this Agreement; (ii) to protect and preserve the titles and interests of the Co-Owners with respect to the Property and chattels therein; (iii) to keep, or cause another to keep under its supervision, all books of account and other records required with respect to the management of the Property in accordance with good accounting principles and procedures applied in a consistent manner, and to keep statements, receipted bills and invoices, and all other records covering all collections, disbursements, and other information and documentation in connection with the Property and the leasing, sub-leasing or periodic occupation of the Property; (iv) to allow each Co-Owner, or any person designated in writing by a Co-Owner, at any reasonable time during regular business hours, and upon reasonable advance notice, to review or audit such books, records, and accounts; (v) to deliver to each Co-Owner a balance sheet and a profit and loss (income) and cash flow statement, together with all information necessary for the preparation of the Co-Owners’ tax returns, as soon as reasonably practicable (but in no event later than 90 days following the close of each financial year); (vi) to retain or employ and coordinate the services of any independent contractors, accountants, legal counsel, and other persons necessary or appropriate to assist the Property Manager in performing its duties under this clause; (vii) to the extent that funds are available from income from the Property, to pay all insurance premiums, debts, and other obligations arising from the Property Manager’s performance of its duties under this clause; THIS IS AN 11-PAGE DOCUMENT, including schedules.