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The State of New Hampshire Supreme Court Case No

The State of New Hampshire Supreme Court Case No

THE STATE OF SUPREME COURT

CASE NO. 2011-0323

Kilnwood on Kanasatka Condominium Unit Association, Inc.

.

Perry Smith, Andy & Jill Belliveau and Rob & Candy Baker

Appeal of Order of the Carroll County Superior Court granting Respondents’ Motion to Dismiss

BRIEF OF PETITIONER/APPELLANT

Kilnwood on Kanasatka Condominium Unit Association, Inc.

Submitted by:

PATRICK . WOOD, NHBA #2785 PATRICK WOOD LAW OFFICE, PLLC 555 MAIN STREET LACONIA, NH 03246-3449 (603) 524-1446

TABLE OF CONTENTS

TABLE OF AUTHORITIES ii

QUESTIONS PRESENTED iii

STATEMENT OF FACTS AND PROCEDURAL HISTORY 1

ARGUMENT

THE PLEADINGS SUFFICIENTLY STATE A CAUSE OF ACTION UPON WHICH RELIEF CAN BE GRANTED 5

THE PLEADINGS CONTAIN SUFFICIENT FACTS TO SHOW THAT THERE WAS A MISTAKE OF FACTS AT THE TIME OF THE INITIAL DECLARATION SUFFICIENT TO WARRANT REFORMATION OF THE ORIGINAL INSTRUMENT 9

CONCLUSION 12

PETITIONER/APPELLANT’ APPENDIX TO BRIEF (SEPARATE)

i

TABLE OF AUTHORITIES

NEW HAMPSHIRE CASE LAW

Avery v. New Hampshire Department of Education & a., 2010-798 (October 27, 2011) 8, 11

Bourn v. Duff, 96 .H. 194 (1950) 5, 7

Ekco Enterprises v. Remi Fortin Construction, 118 N.H. 37 (1978) 5

Gagnon v. Pronovost, 97 N.H. 58 (1951) 11

Gauthier v. Robinson, 122 N.H. 365 (1982) 6

In the Matter of Lemieux & Lemieux, 157 N.H. 370 (2008) 5

Massicotte v. Matuzas, 143 N.H. 711 (1999) 7

Minot v. Tilton, 64 N.H. 371 (1887) 5, 7

NEW HAMPSHIRE STATUTES

NH RSA 479-A 1, 2, 9, 10

NH RSA 356- 9, 10

NEW HAMPSHIRE CONSTITUTION

NH Constitution, part 1, article 14 5

ii

QUESTIONS PRESENTED

THE PLEADINGS SUFFICIENTLY STATE A CAUSE OF ACTION UPON WHICH RELIEF CAN BE GRANTED

THE PLEADINGS CONTAIN SUFFICIENT FACTS TO SHOW THAT THERE WAS A MISTAKE OF FACTS AT THE TIME OF THE INITIAL DECLARATION SUFFICIENT TO WARRANT REFORMATION OF THE ORIGINAL INSTRUMENT

iii

STATEMENT OF FACTS AND PROCEDURAL HISTORY

By document entitled “Declaration of Condominium,” The Thomson Company, Inc.,

purported to submit certain real estate on Lake Kanasatka in Moultonboro, Carroll County, New

Hampshire to the provisions of the Unit Ownership of Real Property Act, NH RSA 479-A, the

“Act;” this document is recorded in the Carroll County Registry of Deeds in Book 548, Page

238.

This document, the “Declaration,” described by metes and bounds the property being

submitted to the provisions of the Act, set forth metes and bounds descriptions for the 29 areas identified as “limited common areas,” and described certain “common areas.” The Declaration also referred to a plan entitled “Kilnwood on Kanasatka, a Condominium Development for The

Thomson Company, Inc., Moultonboro, New Hampshire, November 3, 1970,” recorded in the

Carroll County Registry of Deeds in Plan Book 24, Page 3; this plan was revised through 24

September 1973, and this revised plan is recorded in Plan Book 31, Page 16. These two plans shall be referred to collectively as the “Plan.”

Both the Declaration and the Plan refer to the “limited common areas” as “Lots.” The

Declaration describes the “units” as “separately designated and legally described freehold units consisting of those portions of twenty-nine separately designated lots, tracts or parcels of land, separately designated buildings which have been constructed or may be constructed in the future, together with all fixtures and equipment therein . . . Each unit shall also consist of a cubicle formed by the exterior walls, floors and roof of each building or house.” Declaration Section 5 b).

November 21, 2011 Page 1

The “lots” are identified as “limited common areas.” Declaration Section 5 ). Each

“limited common area” is separately described by metes and bounds in Section 8 of the

Declaration.

The “common areas” are identified as the roads and seven separate areas for a beach, buffer areas, wetlands areas, and picnic areas, Declaration Section 5 ). The common areas are described by metes and bounds, Declaration Section 6, and are shown on the Plan.

The Act requires that floor plans for condominium units be recorded. NH RSA 479-A:

12. To the best knowledge and belief of Petitioner, the only floor plans recorded are for “units”

3, 11, 6, 10, 23, and 20. See Plan Book 25, Pages 41, 42, 43, 44, and 45, for units 3, 11, 6, 10, and 23, and Plan Book 154, Pages 2 and 3 for unit 20.

Limited common area is defined in the Act as “those common areas and facilities designated in the declaration as reserved for use of certain unit or units to the exclusion of the other units.” RSA 479-A: 1, .

Deeds for “units” at Kilnwood convey a one twenty-ninth undivided condominium interest in the common areas, all right, title, and interest in fee simple to the “unit,” and the exclusive right to use and enjoy the “limited common area” bearing the same number as the unit.

See, .., deed of Unit 3 from The Thomson Company, Inc. to Lorraine E. Thomson dated 20

July 1973, recorded in Book 548, Page 299. Unit owners are expressly given the right to expand a “unit” into the limited common area with only the prior written approval of the Development

Committee. Declaration Section 20. The Declaration also provided that it could be amended solely by the “grantor or seller.” Declaration Section 10 kk.

November 21, 2011 Page 2

Kilnwood on Kanasatka Condominium Unit Association, Inc., the Association, was

established as a New Hampshire voluntary corporation on 29 July 1985 to provide for the

management of a residential development in Moultonboro, New Hampshire. This residential

development is known as Kilnwood on Kanasatka.

In the Spring of 2010, the Association considered whether to reform the Declaration to

convert the residential development from a “condominium” form of ownership to a single-family residential development. Owners of twenty-six of the twenty-nine units voted in favor of such reformation. The Respondents are owners of “units” at Kilnwood at Kanasatka who either voted against the proposed reformation or did not vote on the matter. Under the Declaration, such a change to the development would require a 100% vote by the membership. Because the change proposed was supported by such a large majority and also because the great majority of the owners felt the change was in the best interests of all the owners, the Association authorized the

Board to proceed with this Petition to reform the Declaration.

The Petition for Reformation was filed on or about August 6, 2010. Respondent Smith timely filed an Answer. Respondents Baker and Belliveau also timely filed an answer and counterclaim and a Motion to Dismiss/Motion for Summary Judgment. Petitioner filed an answer to the counterclaim and an objection to the Motion to Dismiss/Motion for Summary

Judgment. A hearing on the Motion to Dismiss/Motion for Summary Judgment was held on

February 7, 2011. The Carroll County Superior Court Order is dated March 16, 2011, and

Notice of the Decision is dated March 17, 2011. Petitioner filed a Motion for Reconsideration and Respondents filed Objections to the Motion for Reconsideration. The Carroll County

November 21, 2011 Page 3

Superior Court Order on the Motion for Reconsideration is dated April 7, 2011, and Notice of the

Decision is dated April 8, 2011.

Petitioner filed a Notice of Appeal with this Court on or about May 7, 2011.

November 21, 2011 Page 4

THE PLEADINGS SUFFICIENTLY STATE A CAUSE OF ACTION UPON WHICH RELIEF CAN BE GRANTED

The Petitioner, on behalf of the owners of 26 of the 29 residential sites in Kilnwood on

Kanasatka, filed this Petition for Reformation in order to change the legal framework of this residential subdivision from a “condominium” to a single-family residential development consisting of 29 individual single-family lots.

Our New Hampshire Constitution recognizes that each citizen is entitled to a remedy for injuries to that citizen or that citizen’s property, and that each citizen has to obtain that remedy justly and conformably to the laws.1 Reformation is a remedy that is designed to correct an instrument or contract that does not express the true agreement of the parties. Ekco Enterprises v. Remi Fortin Construction, 118 N.H. 37, 41-42 (1978). The failure to express the intention of the parties may result “from a mistake as to the legal meaning and operation of the terms or language employed in the writing.” Minot v. Tilton, 64 N.H. 371, 374 (1887), citing 2 Pom. Eq., s. 845. Reformation is also a remedy that is available to keep someone from benefitting unjustly from a mistake in a contract or a deed. In the Matter of Lemieux & Lemieux, 157 N.H. 370

(2008). Even where the language of the contract or instrument is not ambiguous, reformation may be available to avoid hardship caused by the enforcement of the language of the instrument.

Bourn v. Duff, 96 N.H. 194, 198 (1950) (citing 3 Williston, Contracts, Rev.Ed., 2263).

The pleadings submitted by the Petitioner clearly indicate that the reformation being sought is not simply to reform a document executed on July 20, 1973. Instead, the Petitioner –

1 [Art.] 14. [Legal Remedies to be Free, Complete, and Prompt.] Every subject of this state is entitled to a certain remedy, by having recourse to the laws, for all injuries he may receive in his person, property, or character; to obtain right and justice freely, without being obliged to purchase it; completely, and without any denial; promptly, and without delay; conformably to the laws. New Hampshire Constitution Part 1, Article 14.

November 21, 2011 Page 5

on behalf of all of the owners in Kilnwood on Kanasatka – is requesting the Court to reform the

contractual relationship between and among those owners.

In a real estate development in which there are a set of covenants and restrictions, each of the purchasers of an interest in that development have contractual obligations and rights that are mutually enforceable; these mutually enforceable rights and obligations are commonly referred to as “equitable reciprocal easements.” Gauthier v. Robinson, 122 N.H. 365, 368 (1982).

Equitable servitudes can be “ascertained from the development plan, the instruments, the conduct of the parties, and the surrounding circumstances.” Id. Transcript, page 24 (lines 6 – 15).

The Petition for Reformation states that the “owners have treated their ‘limited common

areas’ as individual lots.” Petition, page 4. In the next paragraph, the Petition sets forth the process by which owners may expand their residential structures or other buildings on their

“lots” with only the approval of the Development Committee instead of the approval of the other owners of the “limited common area” on which their structures are located. Petition, page 4.

Floor plans showing the residential structures have not been prepared for more than 3 or 4 lots by the owners. Petition, page 5; Motion for Reconsideration, pages 2 and 3. The individual lots are

not assessed or appraised as condominium units, nor are they listed as condominiums by real

estate companies. Memorandum of Law, page 2; Transcript page 16 (lines 14 – 17); Transcript

page 16 (lines 18 – 21) and page 17 (lines 6 – 15).

As the Petitioner stated in its Memorandum of Law, page 1, the Declaration “also

establishes the ownership interests of the various purchasers of lots in Kilnwood. This Petition

does not purport to, nor is it intended to, modify or reform any of the covenants and restrictions

set forth in the Declaration. Transcript, page 20 (lines 1 – 21). Instead, the Petition is intended

November 21, 2011 Page 6

to reform the ownership interests among the various owners and between the owners and

Kilnwood on Kanasatka Condominium Association, Inc.” See, e.g., Massicotte v. Matuzas, 143

N.H. 711, 713 (1999). Transcript, page 25, lines 3 – 5.

And, as set forth in the Petition, page 5, the proposed “reformation would not eliminate

the existing restrictive covenants and easements within Kilnwood on Kanasatka but would

merely serve to create a legal structure that is more in keeping with what the owners understand

they own and what mortgagees have understood as their security.” Transcript, page 20 (lines 1 –

9). Instead, the reformation would protect the owners from the hardship of being required to obtain “as-built floor plans” and “as-built site plans” for all of the lots in Kilnwood. Objection to

Motion to Dismiss, page 2; Transcript, page 14 (line 20) through page 15 (line 1). Moreover, reforming the legal framework for Kilnwood would protect the owners from the onerous lending requirements imposed upon condominium developments by the Federal Housing Administration for federally-backed mortgage loans. Memorandum of Law, page 2; Transcript, page 15 (lines 2

– 11).

The pleadings, when viewed most favorably to the Petitioner, establish that there is a common development plan for Kilnwood on Kanasatka. Second, the pleadings show that the instrument that establishes that common development, the Declaration, does not express the intention of the holders of the equitable reciprocal easements established by that instrument.

Third, the pleadings provide evidence that enforcing the current legal structure will impose a hardship on the owners in Kilnwood. Bourn v. Duff, 96 N.H. 194, 198 (1950) (citing 3 Williston,

Contracts, Rev.Ed., 2263); Minot v. Tilton, 64 N.H. 371, 374 (1887).

November 21, 2011 Page 7

The Petitioner’s pleadings are sufficient to state a basis for reforming the equitable reciprocal easements that affect the owners of homes in Kilnwood on Kanasatka. Avery v. New

Hampshire Department of Education & a., 2010-798 (October 27, 2011).

November 21, 2011 Page 8

THE PLEADINGS CONTAIN SUFFICIENT FACTS TO SHOW THAT THERE WAS A MISTAKE OF FACTS AT THE TIME OF THE INITIAL DECLARATION SUFFICIENT TO WARRANT REFORMATION OF THE ORIGINAL INSTRUMENT

The Petitioner’s pleadings – and the Declaration itself - also provide clear and convincing evidence that the Declarant did not understand the nature of the condominium regime created by the Declaration. The Declaration establishes 29 separate lots and identifies these “lots” as

“limited common areas.” Petition, page 1, paragraph 4, and page 2, paragraph 7. Limited common areas, according to the laws under which condominiums are created, NH RSA 479-A, and NH RSA 356-B, are part of the common area of the condominium that are reserved for the use of certain owners to the exclusion of other owners. Petition, page 2, paragraph 10. The

Declaration, however, describes the “common areas” as being only the roads and the areas for the beach, docking facility, picnic area, wetland areas, and buffers. Petition, page 2, paragraph 8.

Limited common areas are not owned by the unit owners; the unit owners only have the exclusive right to use those areas but all of the owners actually own an undivided interest in the limited common areas. Because of that common ownership, individual unit owners cannot expand their units or build other structures within that limited common area without the approval of all of the other owners because that expansion would change the ownership interests of those other owners. Objection to Motion to Dismiss, page 1. However, the Declaration permits the expansion of a unit into the limited common area with only the written approval of the

Development Committee. Petition, page 2, paragraph 12.

The Declaration is clearly ambiguous when it attempts to define what the respective legal rights and obligations are among owners in Kilnwood as to the property upon which their homes are located. Transcript, page 19 (line 5) through page 20 (line 1). That ambiguity has existed

November 21, 2011 Page 9 from the beginning and continues to the present day. The Petition for Reformation, if granted, would eliminate that ambiguity.

In addition, the Declaration gave the Declarant the right to amend the Declaration without any approval of the purchasers of lots. Petition, page 3, paragraph 13. That unilateral right to amend any part of the Declaration ignores the legal rights of purchasers in the common areas and limited common areas and is contrary to the ownership rights of condominiums established under both NH RSA 479-A and NH RSA 356-B. The fact that the Declaration contains such a striking violation of the basic principles of condominium law is additional evidence that the

Declarant did not comprehend the nature of the regime he was creating.

Under the Declaration, the individual lots are defined as “limited common areas.” The

“units” are the houses that are built upon those limited common areas. Petition, page 2, paragraph 6. Each “limited common area” lot is defined by a metes and bounds description.

Petition, page 2, paragraph 7. As part of the common area for the condominium, the Declaration should require that the location of each unit, as it is completed, should be identified on the ground so the other owners would then know whether that unit was expanded in such a manner as to encroach upon the common area surrounding the unit. However, the Declaration contains no such requirement. Petition page 2, paragraph 6. Indeed, such “as-built site plans” were not recorded. Memorandum of Law, page 3.

It is clear from the Declaration that the Declarant did not understand the nature of the ownership rights and obligations created by a condominium. Indeed, the written information from the Declarant indicates that the goal of the Declarant was to create a lot cluster form of housing. Memorandum of Law, page 2; Transcript, page 12 (line 3) through page 14 (line 1).

November 21, 2011 Page 10

The Petition for Reformation would accomplish the true intent of the Declarant. Gagnon v.

Pronovost, 97 N.H. 58, 60 (1951).

The Petitioner’s pleadings are sufficient to state a basis to establish that the Declarant was sufficiently mistaken in the establishment of the condominium regime of ownership to warrant reforming the Declaration. Avery v. New Hampshire Department of Education & a., 2010-798

(October 27, 2011).

The Respondent’s Motion to Dismiss should not have been granted.

November 21, 2011 Page 11

CONCLUSION

The pleadings submitted by the Petitioner, when read in the favor of the Petitioner, show that the owners of units at Kilnwood on Kanasatka are mistaken in the obligations, responsibilities, and rights affecting their respective properties and their relationship with their co-owners and that the extent of that mistake supports a reformation of those equitable servitudes.

The pleadings submitted by the Petitioner, when read in favor of the Petitioner, show that the developer of the Kilnwood residential development was seriously mistaken in his understanding of condominium law and that the Declaration contains numerous evidences of that mistake, which mistake supports a reformation of that Declaration by the owners who are subject to that Declaration.

The Respondents’ Motion to Dismiss should not have been granted.

November 21, 2011 Page 12

Respectfully submitted, KILNWOOD ON KANASATKA CONDOMINIUM ASSOCIATION, INC. By Its Attorney, PATRICK WOOD LAW OFFICE, PLLC 555 Main Street Laconia, NH 03246 603.524.1446

By: ______Patrick H. Wood, NHBA #2785 Date: November __, 2011

CERTIFICATE OF SERVICE

I hereby certify that a copy of this Petitioner/Appellant’s Brief has been mailed this ____ day of November 2011 to Attorneys Steven . Dutton and Scott H. Harris, Counsel for Respondents, Andy and Jill Belliveau and Rob and Candy Baker, and to Attorney Paul . Fitzgerald, Counsel for Perry Smith.

______Patrick H. Wood, NHBA #2785

November 21, 2011 Page 13

THE STATE OF NEW HAMPSHIRE SUPREME COURT

CASE NO. 2011-0323

Kilnwood on Kanasatka Condominium Unit Association, Inc.

v.

Perry Smith, Andy & Jill Belliveau and Rob & Candy Baker

Appeal of Order of the Carroll County Superior Court granting Respondents’ Motion to Dismiss

APPENDIX TO BRIEF OF PETITIONER/APPELLANT

Kilnwood on Kanasatka Condominium Unit Association, Inc.

Submitted by:

PATRICK H. WOOD, NHBA #2785 PATRICK WOOD LAW OFFICE, PLLC 555 MAIN STREET LACONIA, NH 03246-3449 (603) 524-1446

TABLE OF CONTENTS FOR APPENDIX TO PETITIONER/APPELLANT’S BRIEF

1. ORDERS A. ORDER - MOTION TO DISMISS B. ORDER - MOTON FOR RECONSIDERATION

2. PLEADINGS A. PETITION FOR REFORMATION B. ANSWER OF PERRY SMITH TO PETITION FOR REFORMATION C. RESPONDENTS’ ANSWER, AFFIRMATIVE DEFENSES AND COUNTERCLAIM D. RESPONDENTS’ MOTION TO DISMISS OR IN THE ALTERNATIVE FOR SUMMARY JUDGMENT E. RESPONDENTS’MEMORANDUM OF LAW IN SUPPORT OF THEIR MOTION TO DISMISS OR IN THE ALTERNATIVE FOR SUMMARY JUDGMENT . AFFIDAVIT OF ROB BAKER IN SUPPORT OF RESPONDENTS’ MOTION TO DISMISS OR IN THE ALTERNATIVE FOR SUMMARY JUDGMENT G. PETITIONER’S REPSONSE TO COUNTERCLAIM OF RESPONDENTS ROB BAKER, CANDY BAKER, ANDY BELLIVEAU AND JILL BELLIVEAU H. OBJECTION TO RESPONDENTS ANDY BELLIVEAU, JILL BELLIVEAU, ROB BAKER AND CANDY BAKER MOTION TO DISMISS/AFFIDAVIT OF ENID BURROWS I. RESPONDENTS’ REPLY TO PETITIONER’S OBJECTION TO DISMISS OR IN THE ALTERNATIVE FOR SUMMARY JUDGMENT J. RESPONDENTS’ SUMMARY STATEMENT . REPSPONDENT PERRY SMITH’S JOINDER IN PLEADINGS PREVIOUSLY FILED BY CO-RESPONDENTS . MEMORANDUM OF LAW . PETITIONER’S MOTION FOR RECONSIDERATION N. RESPONDENT PERRY SMITH’S OBJECTION TO MOTION FOR RECONSIDERATION . RESPONDENTS’ OBJECTION TO MOTION FOR RECONSIDERATION P. RESPONDENT PERRY SMITH’S JOINDER IN OBJECTION TO MOTION FOR RECONSIDERATION

3. EXHIBITS A. STIPULATION 1973 CASE NO. 5068 B. TED HILTON LETTER MARCH 25, 1973 C. ATTORNEY MICHAEL MURPHY LETTER MARCH 29, 1973 D. THOMSON DESCRIPTION OF KILNWOOD PLAN E. DANIEL J. MERHALSKI, TOWN PLANNER, LETTER JUNE 22, 2010 F. GARY J. KARP, ASSESSOR, LETTER AUGUST 31, 2010 G. ANTHONY L. RANDALL, SURVEYOR, LLS #834, LETTER DECEMBER 30, 2010 H. TAX BILL, 4 BRICK KILN ROAD I. FEDERAL HOUSING ADMINISTRATION REQUIREMENTS J. 15 HORNBEAM HOLLOW INFORMATION K. MLS LISTINGS “RESIDENTIAL” L. MLS LISTINGS “CONDO”

ün ¡ STATE OF NEW HAMPSHIRE [I þJ JUDICIAL BRANCH

Carroll Superior Court re I & Yô n e {€o3) 53 }-22'0 1' 96 Water Village Rd., Box 3 TTY/TDD Relay: (800) 735-2964 Ossipee NH 03864 http :/iwww.cou rts.state. n h. u s

NOTICE OF DEGISION

Patrick H. Wood, ESQ Patrick H Wood Law Office PLLG 555 Main Street Laconia NH 03246

Kilnwood On Kanasatka Gondom¡n¡um Unit Association, lnc. v Perry Smith, Case liame: Andy & J¡ Belliveau and Rob & Gandy Baker Case Number: 212-2010-GV-00191

Enclosed please find a copy of the courl's order of March 16,2011 relative to:

Order (Re: Hearing)

March 17,2011 Patricia A. Lenz Clerk of Court

(406) C: Scott H. Harris, rSe; Steven J. Dutton, ESe; paul T. Fitzgerald, ESe

KILN000001 N H J B-2503-5 (02t24t2009)

Ct'. C\i¿n¡t 5.Zt, tl ,n'û. e-¡^a^'.1 THE STATE OF NEW HAMPSHIRE

CARROLL COUNTY SUPERIOR COURT

Kilnwood on Kanasatka Condominium Unit Association, Inc.

V.

Perry Smith, Aody & Jill Belliveau, and Rob & Candy Baker

Docket No.: 212-201 0-CV-00 1 9 1

ORDER

The petitioner, Kilnwood on Kanasatka Condominium Unit Association, Inc. ("Kilnwood") has sued unit owners Peny Smith, Andy & Jill Belliveau, and Rob & Candy Baker (collectively, the "respondents"), and requests that this court'reform Kilnwood's enabling instrument. The petitioner asserts that the "Declaration of

Condominium" created at its inception actually described or was intended to describe a single-family residential subdivision, and thus should now be reformed by the court to reflect that intention. The respondents object and have cross-petitioned the court to declare that Kilnwood was and is, in fact, a condominium association. The respondents have moved to dismiss, or in the altemative, have moved for summary judgment, to which Kilnwood objects. A hearing on this matter was held on February 7,2011. Upon consideration of the pleadings, the parties' arguments, and the applicable law, the court finds and rules as follows.

In 1985, Kilnwood was created by The Thomson Company, Inc., under a document titled "Declaration of Condominium" ("Declaration"), pursuant to RSA 479-4.

The Declaration was recorded at the Carroll County Registry of Deeds. Kilnwood asserts that the Declaration should be reformed first because the Declaration itself creates, or was intended to create, not a condominium but a subdivision of single family residential lots with some additional commonly owned areas; and second because the manner in which

KILN000002 the units are currently used and commonly referenced suggests that Kilnwood should be

charucferized not as a condominium but as a residential subdivision.

Kilnwood asserts that several of the unit owners never followed through on their

obligation to submit floor pians normally created as part of a condominium creation, that this negates any condominium status, and that doing so now would be costly. It also asserts that the descriptions of the "lots" in the Declaration use language more commonly used to describe single-family homes. Further, Kilnwood claims that ownership of condominiums is not preferable for unit owners, and that such units are less desirable to

prospective buyers. The Kilnwood Association members considered the reformation of the Declaration, but could not reach a unanimous vote, required to reform the instrument. The respondents are unit owners who voted against the reformation. The respondents

claim that Kilnwood wants to reform the Declaration because doing so would nulliff a stipulation that was incorporated into the Declaration document. The stipulation is the resolution of a 1973 legal action that now serves to limit Kilnwood's expansion of its docks. Kilnwood denies that the stipulation is relevant to the present action. In ruling on the defendant's motion to dismiss, the court must determine whether the plaintiff s allegations are "reasonably susceptible of a construction that would permit

recovery." Bohan v. Ritzo, 141 N.H. 210,212 (1996), (quoting Vy'enners v. Great State Beverages, 140 N.H. 100, 102 (1995), cert. denied,516 U.S. 1119 (1996)). This determination requires the court to test the facts contained in the petitioner's pleadings against applicable law. Jay Edwards. Inc. v. Baker, i30 N.H. 4I,44 (1987). In rendering such a determination, the court "assumefs] the truth of all well-pleaded facts alleged by the plaintiff and construefs] all inferences'in the light most favorable to the plaintiff."' Bohan, 141 N.H. at 213, (quoting Wenners, 140 N.H. at I02). "The plaintiff must, however, plead sufficient facts to form a basis for the cause of action asserted." Mt. 'Water Sprines Co. v. Mt. Lakes Vill. Dist., 126 N.H. I99,201(1985). A court "need not accept statements in the complaint which are merely conclusions of law." Id. In connection with the pending issues, the parties ask that the court accept the documents attached to pleadings and submitted at the hearing in support of their positions, and,

KILN000003 understanding that the standard ofreview does not change, the court elects to do so. S¿¿

Rule 58 (concerning necessary evidence at hearing on motion to dismiss).

"It is well established that courts may grant reformation in proper cases where the instrument fails to express the intentions that the parties had in making the contract." Matter of Lemieux, 157 N.H. 370,373 (2008). A court will reform a legal document when clear and convincing evidence exists to show that the instrument does not express the agreement made by the parties as result of mutual mistake of fact or law. Id. There is no law or judicial power by which considerations of equity may reform contracts which are free from legal attack on the grounds of fraud and mistake. What parties would have done with more information of facts or with better knowledge of the law is no concern of the courts.

Lemire v. Hale)¡, 91 N.H. 357,362 (1941). Even taking inferences in the light most favorable to Kilnwood, there is little in the record which would demonstrate. that the parties to the Declaration did not intend to create a condominium association. No claim is made about the Declaration which would implicate fraud, and such of those assertions and inferences which would support a finding of mistake at the time of its inception falls far short of the possibility of even a preponderance. For example, that certain unit owner's failed to submit floor plans does not negate the fact that the document is titled "Declaration of Condominium," that it explicitly states that it is a declaration under the Unit Ownership of Real Property Act, RSA Chapter 479-A, and, notwithstanding its creation of 29 "limited common area" lots, plainly creates a condominium. Other circumstances surrounding the creation of the Declaration clearly indicate an intent to create a condominium, including the adoption of a condominium plan, condominium bylaws, and floor plans recorded by other unit owners. Kilnwood's reference to the use and description of the term "lots" in the Declaration as evidence of the intent to create a single-family subdivision is equally unavailing, as they the "lots" are clearly identified as limited common areas. Likewise, claims relating to the difficulty finding purchasers or financing for potential purchasers, the expense of complying with pertinent statutory obligations, inaccurate references to

Kilnwood as a residential subdivision by the Town of Moultonborough or by area realtors, or the 1973 stipulation, are insufhcient in light of this record. Taking the pleadings, as supplemented by the exhibits, and all inferences in favor of Kilnwood,

KILN000004 Kilnwood has not shown that it can met its burden of demonstrating mistake by clear and convincing evidence, and thus the instrument cannot be disturbed, as it reflects the intent of the parties to the original agreement. See Lemieux, 157 N.H. at373. The petition, taken in light most favorable to the petitioner, does not permit recovery. Accordingly, the respondents' motion to dismiss is granted.

So ordered. March 16,2011

Steven M. Houran Presiding Justice

KILN000005 ')) THE STATE OF NEW HAMPSHIRE JUDICIAL BRANGH Carroll Superior Court Telephone: (603) 539-2201 96 Water village Rd., Box 3 TTY/TDD Retay: (800) 735-2964 Ossipee NH 03864 http://www.courts.state.nh.us

NOTICE OF DEGISION

Patrick H. Wood, ESQ Patrick H Wood Law Office PLLC 555 Main Street Laconia NH 03246

Kilnwood On Kanasatka Gondom¡n¡um Unit Association, lnc. v Perry Smith, Case l.lanre: Andy & J¡ll Belliveau and Rob & Candy Baker CaseNumber: 212-20'10-CV-00191

Enclosed please find a copy of the court's order of April 07 ,2011 relative to:

Order on Motion for Reconsideration

April 08, 2011 Patricia A. Lenz Clerk of Court

(406) C: Scott H. Harris, ESe; Steven J. Dutton, ESe; paul T. Fitzgerald, ESe

KILN000006 N H J 8-2503-S (02t 24t 2009) THE STATE OF NEW HAMPSHIRE

CARROLL COLINTY SUPEzuOR COURT

Kilnwood on Kanasatka Condominium Unit Association, Inc.

Perry Smith, Andy & Jill Belliveau, and Rob & Candy Baker

Docket No.: 272-20 1 0-CV-001 9 I

ORDER ON MOTION FOR RECONSIDERATION

The plaintiff, Kilnwood on Kanasatka Condominium Unit Association, Inc. ("Kilnwood") moves for reconsideration of this court's order dated March 16, 20Il dismissing this action as failing to state a claim upon which relief may be granted. The defendants object. The court is bound to apply the law of reformation. Thus, while it "is well established that courts may grant reformation in proper cases where the instrument fails to express the intentions that the parties had in making the contract," Matter of Lemieux, 157 N.H. 370, 373 (2008), there "is no law or judicial power by which considerations of equity may reform contracts which are free from legal attack on the grounds of fraud and mistake," Lemire v. Haley,91 N.H. 357,362 (1941). "'Whatparties would have done with more information of facts or with better knowledge of the law is no concern of the cour1s." Id. Reformation of a legal document requires clear and convincing evidence showing that as result of mutual mistake of fact or law the instrument does not express the agreement made by the parties. Lemieux, 157 N.H. at373. On that standard applied here, taking the petition and all reasonable inferences in the petition in the light most favorable to the plaintiff the law of reformation does not permit the relief requested. The court determines that its order dated March 16,2011 neither overlooked nor misapprehended any point of law or of fact. See Superior Court Rule 59-A (1). Accordingly, the motion for reconsideration is denied. Id. So ordered.

Aprrl T ,2017 Steven M. Houran Presiding Justice

KILN000007 STATE OF NEW HAMPSHIRE CARROLL, SUPERIOR COUR]

KILNWOOD ON KANASATKA CONDOMINIUM UNIT ASSOCIATION,INC. P.O. Box 380 Center Harbor, NH 03226

v.

PERRY SMITH, P.O. Box 297,}l4elvin Village, NH 03850, ANDY & JILL BELLMAU, 4 West St., Georgetown, MA 01833-1323, and ROB & CANDY BAKER 2zMill St., S. Hamilton, MA 01982

PETITION FOR REFORMATION

NOW COMES KILNWOOD ON KANASATKA CONDOMINruM I.INITASSOCI,ATION, INC., A

New Hampshire voluntary corporation having its principal place of business in Moultonboro, Carroll

County, New Hampshire, on behalf of itself and on behalf of 26 of its 29 members, "Petitioner," and respectfully petitions this Court to reform the document entitled "DECLARATION OF

CONDOMINIUM" foT Kilnwood on Kanasatka dated20 JuIy 1973, and recorded in the Carroll

County Registry of Deeds in Book 548, Page ?38, and in support thereof states the following: FACTS:

1 . Petitioner was established as a New Hampshire voluntary corporation on29 July 1985 to

provide for the management of a recreational development in Moultonboro, New Hampshire. This

recreational development is known as Kilnwood on Kanasatka.

2. Respondents are owners of "units" at Kilnwood at Kanasatka who either voted against the

proposed reformation or did not vote on the matter.

3. By document entitled "Declaration of Condominium," The Thomson Company, Inc., purported to submit certain real estate on Lake Kanasatka in Moultonboro, Carroll County, New Hampshire to the provisions of the Unit Ownership of Real Property Act, NH RSA 479-A, the

"Act;" this document is recorded in the Canoll County Registry of Deeds in Book 548,Page238. 4. This document, the "Declaration," described by metá and bounds the property being

submitted to the provisions of the Act,29 areas as "limited coÍtmon areas," and certain common areas, and referred to a plan entitled "Kilnwood on Kanasatka, a Condominium Development for The

August 5, 2010 Page I

KILN000008 Thomson Company, Inc., Moultonboro, New Hampshire, November 3, 1970,- recorded in the Canoll County Registry of Deeds in Plan Book 24, Page 3; this plan was revised t}rough 24

September 1973, andthis revised plan is recorded in Plan Book 3l,Page 16. These two plans shall

be referred to collectively as the "Plan."

5. Both the Declaration and the Plan refer to these "limited common areas" as "Lots."

6. The Declaration describes the "units" as "separately designated and legally described

freehold units consisting of those portions of twenty-nine separately designated lots, tracts or parcels

of land, separately designated buildings which have been constructed or may be constructed in the

future, together with all fixtures and equipment therein . . . Each unit shall also consist of a cubicle

formed by the exterior walls, floors and roof of each building or house." Declaration Section 5 b).

7. The "lots" are identified as "limited common areas." Declaration Section 5 c). Each

"limited common area" is separately described by metes and bounds in Section 8 ofthe Declaration.

8. The "common areas" are identified as the roads and seven separate areas for a beach, buffer ateas, wetlands areas, and picnic areas, Declaration Section 5 d), are described by metes and bounds, Declaration Section 6, and are shown on the Plan.

9. The Act requires that floor plans for condominium units be recorded. NH RSA 479-A 12. To the best knowledge and belief of Petitioner, only floor plans for "units" 3, 1I,6,I0,23, and

20have beenrecorded. See PlanBook25, Pages 4l,42,43,44,and45,forunits 3,71,6, 10, and

23, and Plan Book 154, Pages 2 and 3 for unit 20.

10. Limited common area is defined in the Act as "those coÍtmon areas and facilities designated in the declaration as reserved for use of certain unit or units to the exclusion of the other units." RSA 479-A: 1, X.

11. Deeds for "units" at Kilnwood convey a one twenty-ninth undivided condominium interest in the coÍìmon areas, all right, title, and interest in fee simple to the "urlit," and the exclusive right to use and enjoy the "limited common area" bearing the same number as the unit. See, e.g., deed of The Thomson Company, Inc. to Lorraine E. Thomson dated 20 July 1973,recorded in Book 548, Page 299. (Unit3)

12. Unit owners are expressly given the right to expand a "unit" into the limited coÍrmon area with only the prior written approval of the Development Committee. Declaration Section 20.

August 5,2010 Page2

KILN000009 13. The Declaration also provided that it could be amended solely by the "grantor or seller."

Declaration Section 10 kk.

LA\ry AND ARGUMENT:

This case presents a challenge to the interpretation and application of condominium law to

the Kilnwood at Kanasatka. Condominiums, like corporations, are creatures of statute that did not

exist in the common law. This development was submitted to the provisions of the New Hampshire Unit Ownership of Real Property Act, NH RSA 479-A. This Act was replaced by the New Hampshire condominium Act on September 10, 1977, NH RSA chapter 356-8.

A condominium is a form of ownership of real estate that blends the concepts of single

ownership and tenancy in common. Specifically, in a condominium, there are individual "units" that

are distinct from each other; these individual units are for the exclusive ownership and occupancy of the title holder to that unit. In addition, the real property and parts of the building that are not included within the description of the individual units are the "comm on atea" of the condominium; this area is owned in common by all of the owners ofthe individual units. While there are countless different ways to combine these principles, the basic concepts must appear in every condominium.

In light ofthis blending of real estate concepts, there are some basic ground rules for creating a condominium. First, there must be a declaration of condominium. This document is similar to a set of covenants and restrictions. The declaration must clearly describe the property that is being made subject to these covenants and restrictions - a process that is known as submitting the property to the condominium form of ownership. The declaration must define the boundaries of the individual units, the common areas, the areas of the coÍrmon areathatmight be limited to usage by a specific unit or units, the types of buildings, the insurance requirements, the percentage of ownership in the common area that is appurtenant to each unit, the voting rights that apply to each unit, and how the declaration can be amended or the condominium terminated.

The second critical document for every condominium is a set of by-laws. The by-laws set forth the method by which the unit owners govern themselves. This document identifies how the unit owners meet, when they meet, what officers will be elected and how, the duties and authorities of the officets, and how the costs of maintenance are to be established, apportioned, and collected.

August 5, 2010 Page 3

KILN000010 The third document is the site plan. This is a visual depiction ofthe property upon which the

buildings and common areas a¡e shown. One of the principal purposes of the site plan is to show

where on the face of the earth a specihc unit is located so it could be replaced in that same location

in the event of its destruction. In addition, the site plan must show where the limited common areas are and any other matters that arc commonly required for site survey information.

The fourth required document is a set of floor plans. These plans depict the vertical and

horizontal boundaries of the individual units. Similar to the site plan, these plans must be tied into a

specific elevation point on the surface of the earth in the event the units are damaged or destroyed.

Despite being called a "condominium," Kilnwood on Kanasatka bears all the markings of a

single-family lot residential subdivision. The Declaration refers to the arcathata purchaser buys as

"lots." The site plan refers to these areas as "lots" and is indistinguishable from a standard

residential subdivision. The owners have treated their "limited common areas" as individual lots.

Only on rare occasions have floor plans ofbuildings been prepared and recorded as required under

the Act. The houses are taxed in the same manner as houses in other single-family subdivisions in Moultonborough.

The "limited common areas" are not dealt with as part of the "common area" as is required under the Act - and the Declaration - since unit owners can expand their units or modify their units to encompass additional parts of that "common area" with only the approval of the Development

Committee and without the consent and approval of the Association and all the other unit owners, whose ownership interest in the "common area" would be affected by that expansion. Under the

Declaration, matters that adjudicate "the ownership interest in common areas" requires unanimous approval of all the unit owners and their mortgagees.

The "common areas" described in the Declaration are actually only the areas that are not available for development for residential purposes or are to be used for a common beach or docking facility; this definition of "common area" in the Declaration ignores the definition of "common area" in the Act which includes the limited common areas.

The parties to the Declaration and to the deeds for "lots" in Kilnwood on Kanasatka clearly must have intended this development to be treated as a single-family residential subdivision, even though it was purportedly created as a "condominium." Certainly, the owners of "lots" in Kilnwood

August 5, 2010 Page 4

KILN000011 on Kanasatka have treated their respective "limited common areas" as single-family house lots. The

failure of most of the owners to record floor plans for their houses and the failure of the Association

to insist on such plans indicates at least a lack of understanding of the requirements of the Act as it

would apply to this property and more probably indicates an understanding that this development

really is a single-family residential lot subdivision where such floor plans are not required to be recorded.

The Declaration states that it may be amended by the vote of 2l3rds ofthe owners of all units,

provided the amendment does not adjudicate the "ownership interest of owners in the common areas,

elements or facilities, and common surplus, the assessment shares of Unit O\ryners." Declaration

Section 3 6. The property can be removed from the provisions of the Act only by the unanimous vote

of all of the unit owners and their mortgagees. Declaration Section 32.

Reforming the Declaration of Condominium to make it a Declaration of Covenants, Restricitions, and Easements in which the Association would become the owner of the common

areas as defined in the Declaration would not change the ownership interest of owners in the common areas because each owner is required to be a member of the Association. Declaration

Section 22. Reforming the Declaration to change the "limited coÍtmon area" lots as defined in the

Declaration into single-family residential lots would not affect any owners interest in the common areas because the owners already understand they "own" those "lots" now. Such a reformation would not eliminate the existing restrictive covenants and easements within Kilnwood on Kanasatka but would merely serve to create a legal structure that is more in keeping with what the owners understand they own and what mortgagees have understood as their security.

Reformation is an extraordinary remedy.

"The law is well settled in this jurisdiction that ref'ormation may be granted ... where the instrument fails to express the intention which the parties had in making the contract which it purports to contain" and that "parol evidence of mistake in reduction ofthe agreement ofthe parties to writing may be received, not for the purpose of varying the written instrument, but for the purpose of establishing the mistake and correcting the instrument." Gagnon v. Pronovost,9T N.IL 58, 60, 80 A.2d 381, 383 (1951) (quotation and citations omitted). It is also settled that "reformation will only be granted when the evidenc e is clear and convincing that (1) there was an actual agreement between the parties, (2) there was an agreement to put the agreement in writing and (3) there is a variance between the prior agreement and the writing. " Erin Food Servs., Inc. v. 688 Props.,1 1 9 N.FI. 232,237 ,401 (1979). ^.2d207,204 August 5,2010 Page 5

KILN000012 McCabe v. Arcidy,l38 N.H. 20,27-28 (1993).

Accordingly it is established that to warrant a decree of reformation the "mistake must be made out in the most clear and decided manner, and to the entire satisfaction of the court; and especially must the proofs be clear and convincing, when the mistake is denied in the answer." Tilton v. Tilton,9 N.H. 385,392; Searles v. Churchili, 69 N.H. 5301' Hould v. Company, 33 N.li.474.

Gagnon v. Pronovost, 9T N.H. 58, 60-61 (1951).

. . . a written instrument willbe reformed if it is shown that the instrument is not the true expressionoftheparties'agreement.3 A. Corbin, Contracts $ 540 (1960); see Shapirov. National Forest Fire Ins., Co.,I02 N,H. 111, 151 A.2d590 (1959); Gagnonv. Pronovost,9T N.H. 58,64,80 A.2d 381, 385 (1951).

Ekco Enterprises v. Remi Fortin Construction, 11 8 N.H. 37 , 4I-42 (1978). In order for reformation of an instrument to be considered, the party seeking reformation must show that the instrument clearly does not express the understanding and agreement of the parties. From a reading of the Declaration and a review of the Plan and the deeds it is clear that the developer intended this development to be treated as a single-family residential subdivision even though it was called a "condominium." It is also clear from the actions of the owners that they have not treated this development as a "condominium" but have instead recognized it as a single-family residential subdivision. While the Declaration permits amendment by a2l3tds vote of the owners, withdrawal of the development from the provisions of RSA 47g-Awould require a unanimous vote of the owners and their mortgagees. Even though a reformation of the Declaration from a

"condominium declaration" to a declaration of covenants and restrictions would not change the relationship of the o\ryners among themselves or within the Association and would not negatively affect the interests of any mortgage holder, obtaining unanimous consent to such a withdrawal ofthe development from the provisions of RSA 47g-Awould be impossible and impracticable.

Petitioner has no adequate remedy at law.

WHEREFORE, Petitioner respectfully requests that the Honorable Court:

A. Enter an Order, after notice and hearing, reforming the Declaration of Condominium for Kilnwood on Kanasatka, as amended, by converting it to a Declaration of

Covenants, Restrictions, and Easements, and by converting the "limited common area" lots to single-family residential lots;

August 5,2010 Page 6

KILN000013 B. Enter an Order, after notice and hearing, ordering that there shall be appurtenant to

each lot in Kilnwood on Kanasatka as described in the Declaration a one-twenty

ninth interest in all of the coÍtmon areas of Kilnwood on Kanasatka;

C. Enter an Order, after notice and hearing, that the covenants and restrictions in the

Declaration, as curtently amended, shall remain in full force and effect until such

time as they may be amended by the owners in accordance with such Declaration; and

D. Grant such other and further relief as the Court may deem just and proper.

Respectfully submitted, KILNV/OOD ON KANASATKA CONDOMINruM UNIT ASSOCIATION, INC. vy,f'.,^)-//'' Name: lu,n Bupp-ôrt)< Its Duly Authorized President

STATE OF NEW HAMPSHIRE COUNTY OF È¿r Lncr-p

Subscribed and sworn to before me this hr day of 2010 by the duly authorized President of KILNWOOD ON KANASATKA CONDOMINIUM UNIT ASSOCIATION,INC., aNew Hampshire voluntary corporation, on behalf thereof.

Notary Public/Justice of the My commission expires:

August 5, 2010 Page 7

KILN000014 ïälEcErvEtîl

li] ri;,/ f) _ 2ûto IUI STATE OF NEW HAMPSHIRE CARROLL, SS SUPERIOEOOURT

KI LNWO OD ON KANASATKA COND OMINI UM UNIT ASS OCIATION, INC.

Vs.

PERRY SMITH, ETAL. Cesn Ntru BErc- 212-2o ro-CV-o or9 r

ANSWER OF PERRY SMITH TO PETMION FOR REFORMATION

NOW COMES PERRY SMITH, a Respondent in the above-captioned matter, and by way of answer and defense to said Petition states the following: 1. Admitted. 2. Respondent voted against the proposed reformation g. Admitted. 4. Admitted. S. The Respondent is without adequate knowledge to either admit or deny the allegations of Paragraph 5, and so those allegations are denied and the petitioner is put to its proof thereof.

6. The Respondent is without adequate knowledge to either admit or deny the allegations of Paragraph 6, and so those allegations are denied and the petitioner is put to its proof thereof.

T. The Respondent is without adequate knowledge to either admit or deny the allegations of Paragraph 7, andso those allegations are denied and the Petitioner is put to its proof thereof.

B. The Respondent is without adequate knowledge to either admit or deny the allegations of Paragraph 8, and so those allegations are denied and the Petitioner is put to its proof thereof.

9. The Respondent is without adequate knowledge to either admit or deny the allegations of Paragraph 9, and so those allegations are denied and the Petitioner is put to its proof thereof.

to. The Respondent is without adequate knowledge to either admit or deny the allegatiõns of Paralraþh 1õ, and ßo thosé alle$ations ãre denied and the petitioner is put to its proof thereof.

KILN000015 Cl,.ctiL,r1t YQ €,mctt'I tl't'rD 11. The Respondent is without adequate knowledge to either admit or deny the allegations of Paragraph !r, and so those allegations are denied and the Petitioner is put to its proof thereof.

t^2. Admitted.

13. The Respondent is without adequate knowledge to either admit or deny the allegations of Paragraph tB, and so those allegations are denied and the Petitioner is put to its proof thereof.

I.A\MAIYD ARGUMENT

The Respondent has been the owner of a unit at Kilnwood since r97L. To the best of his knowledge and belief, the property has functioned quite well as a condominium in the eyes of everyone. There have of course been issues along the wây, which is typical of any condominium association. While the Petitioner can point out certain deficiencies in the Declaration, the key provisions of a condominium are in place. The land is owned in common and each unit owner has an undivided interest in the Common Area. Units are individually owned for the exclusive right of ownership and occupancy. There is a Unit Owners Association in place, which has successfully managed the condominium for almost 4O years. The condominium Act makes it clear that the Act applies to all condominiums and all condominium projects. The provisions of the Act supersede RSA 479-A, but the Act shall not be construed to affect the validity of any provision of any condominium instrument prior to SeptembeÍ tg, rgg7.

The Kilnwood Declaration of Condominium specifically states that a loo% vote is required to terminate the condominium. This is consistent with RSA 3S6-B:94, which states in part, "The condominium instruments shall be amended only by agreement of unit owners of units to which 2/S's of the votes in the Unit Owners Association appertain or such latgef majority aS the condominium instruments may specify..."

KILN000016 The deeds give the unit owners the right to exclusive use and enjoyment of the limited common areas, not to the ownership of the land. The land is part of the condominium parcel and is owned by all unit owners in undivided shares. (Declaration, Section rz) Changing the "limited common area" lots into single-family residential lots removes the land from the condominium parcel, removes a portion of ownership, and changes the value of the undivided shares in the condominium.

In 1985, the Town of Moultonborough passed a zoning ordinance which effectively merged Kilnwood lots 9 and 13. ln tggz, the owner was taken to court by Kilnwood when he refused to pay 2 assessments on a single lot. Kilnwood areued that since the land had never been

in common b]¡ the unit owners. Carroll County Superior Court, in case number 9z-S-o93, found in favor of the plaintiff "Kilnwood on Kanasatka Condominium Unit Association fnc." In 1998 the Town reversed its decision when it was successfully argued that the units in a condominium cannot be merged. What Kilnwood is saying in 2o1o seems to be in conflict with what it was saying in t9gz.

There is no such thing in New Hampshire as a common law condominium. Therefore, the Court needs to look to the provisions of the Condominium Act to determine the circumstances under which Kilnwood might be terminated as a condominium. The Respondent and others have not agreed to the termination and thus an attempt at termination without roo% approval would not apply. Furthermore, the Respondent asserts that the Petitioner's request for reformation fails as a matter of law and is not supported by the facts asserted in the Petitioner's Petition.

KILN000017 WHEREFORE, the Respondent respectfully requests that the Honorable Court:

A. Dismiss the Petition; B. Grant such other and further relief as the Court may deem just and proper.

This pleading was prepared with the assistance of a New Hampshire attorney.

Respectfully submitted,

U Novembet___/_,r 2o1o I certify that I have this duy mailed a copy of my Answer to Patrick H. Wood, Esg., Attorney for the Petitioner

Perry

KILN000018 Customer Display Page I of18

Residential 3O1 RED HILL ROAD L $124,9OO 747905 Closed ciLL7,45O

Zoning: RES Rooms: 7 Year Built: 1 981 Bedrooms: 3 Color: BROWN Total Baths: Taxes: $ .00 Full: Taxes TBD: 3/4 Baths: Tax Year: 1/2 Baths: Monthly Assoc.$: $ Garage Capacity 2 Lot Acre: .95 Garage Type: Attached Lot SqFt: 41 ,382 Total Fin SqFt: I,000 Common Land Acres: Apx Fin Above Grd: I,000 Road Frontage: 216 Apx Fin Below Grd: Water Frontage: Foot Print: Water Acc Type: Flood Zone: Unknown # of Stories: Stylel Water Body Type: Water Body Restr.: Surveyed: Unknown Seasonal: No WaterBodyName: KANASATKA CurrenUland Use: Land Gains: Owned Land: Parcel Access ROW: ROW for other Parcel: ROWWidrh: ROW Length: Pub|ic Rems: PRIVATE RESIDENTIAL AREA WITH BEAUTIFUL SHARED BEACH AND TENNIS WITH A WINTER VIEW OF KANASATKA. HOME HAS BEEN RENOVATED IN I.AST 3 YEARS AND HAS MUCH TO OFFER.! Directions: RT. 2 E, LEFT ONTO RED HILL RD. ABOUT 1.8 MILES ON LEFT. ROOM DIMS LEVEL ROOM DIMS LEVEL FLOOR BR FB 314 1t2 Living Rm 12X16 B Master BR 13X15 I 1st 200 0 ,Kitchen 1 2nd BR 't1x11 1 2nd 100 0 Dining Rm 12X14 3rd BR 10x10 2 3¡d 000 0 tFamily Rm 12X15 4th BR 4th lOffice/Study sth BR Bsmt 1 .Utility Rm Den 'Other Rm 1 12X15 B Other Rm 3 Other Rm 2 rAssoc Amenities: Possession: lnterior Feat,: IExterior Feat.: lBasement: Equip./Appl.: :Driveway: Electric: lConstruction: Exterior: ;F¡nancing: Foundation: lFloors: Heating/Cool: iGarage/Park: Lot Desc: ,Heat Fuel: Occ. Restrictions: iRoads: Roof: ,Sewer: Water: 'Suitable Land Use: ,Fee lncludes: Water Heater: Disability: Building Certs: Negotiable: Docs Available: ,Excl Sale: :Tax Rate: $14.58 Assmt: $78,000.00 Assmt Yr: 99 iTax Class: Unadjusted Taxes: Tax Reduct: No ,Elderly: Veteran: Other: :Covenant: Yes Source SqFt: Carroll lRecorded County: Deed: Book/Pg: 1656/ 051 Plan/Survey: Map/BlcULot: 471 I 123 Property lD: SPAN # (VT): - i Devel/Subdiv: Kl LNWOOD Const. Status: Home Energy Rating lndex: High Sch: Jr./Mid Sch: :Elem'District: Sch: Cable: Electric Co: iFuel Go: Phone Co: Resort:

: Timeshare/Fract, Ownrshp: # Weeks: Timeshare %: Closed Date: 04/03/2000 DOM/DUC: 0 / 55

William Richards Email : [email protected] Coldwell Banker RB/Center Harbor off. Ph# : (603) 253-a3a5

PO Box 161 Agt. Ph#: (603) 253-4345 ext. 125 Center Harbor, NH 03226 Gell Ph#:0- Lister: Pamela Car¡ello of Century 21 Lakes Region Realty Fax Ph#: (603) 253-8150 www. nemoves.com/bill. richards home www nemoves com.

KILN000019 U3U20r1 Customer Display Page 3 of 18

BRICK :Residential 39 KLIN ROAD L $159,OO0 'A47876 Closed c$15O,OOO

Zon¡ng: RES Rooms: 5 Year Built: 1 985 Bedrooms: 2 Color: GREY Total Baths: 1 Taxes: $ .00 Full: 1 Taxes TBD: 3/4 Baths: 0 Tax Year: 1/2 Baths: 0 Monthly Assoc.$: $ Garage Capacity 0 Lot Acre: .70 Garage Type: None Lot SqFt: 30,491 Total Fin SqFt: 748 Common Land Acres: Apx Fin Above Grd: 748 Road Frontage: 252 Apx Fin Below Grd: Water Frontage: 900 Foot Print: 22X34 Water Acc Type: Flood Zone: Unknown # of Stories: Style: Contemporary , Split Entry iwater Body Type: Water Body Restr.: Surveyed: Unknown Seasonal: No iWater Body Name: KANASATKA Current/Land Use: Land Gains: Owned Land: Parcel Access ROW: ROW for other Parcel: ROWWidth: ROW Length: Pub|ic Rems: THIS BEACH ACCESS GET-A-WAY IS EFFICIENT, COZY , LOW MAINTENENCES. VERY PRIVATE I.ANDSCAPED LOT HAS ROOM ENOUGH TO ADD A ROOM, AND A GARAGE. BOAT SLIP AVAILABLE! DiTections: BEAN ROAD TO RIGHT ON SIBLEY ROAD TO RIGHT ON KILNWOOD TO LEFT ON BRICK KILN TO HOUSE ON LEFT :nooul DIMS LEVEL ROOM DIMS LEVEL FLOOR BR FB 3t4 1t2 ¡Living Rm 1 Master BR 1st 1 000 : Kitchen I 2nd BR 1 2nd 0 000 iDining Rm I 3rd BR 3rd 0 000 'Family Rm 4th BR 4th :Office/Study sth BR Bsmt 0 .Utility Rm Den iOther Rm I Other Rm 3 Other Rm 2

:Assoc Amenities: Possession: lnterior Feat.: Cathedral Ceilings , Wood Stove -up Exterior Feat.: Beach Rights , Deck , Tennis Court iBasement: C¡awl Spàce iEquip./Appl.: Range-Electric , Refrigerator , Window Treatment , Wood Stove ;Driveway: Gravel Electric: 200 Amp , Circuit Breake(s) :Const¡uction: Wood Frame Exterior: Board and Batten ;Financing: Foundation: Concrete :Floors: Heating/Cool: Radiant Electric r Garage/Park: Lot Desc: Landscaped , Level , ROW to Water ;Heat Fuel: Electric, Wood Occ. Restrictions: lRoads: Association Roof: Shingle-Asphalt isewer: Leach Field , Private Water: Community iSuitable Land Use: iFee lncludes: Water Heater: Electric :Disability: Building Certs: rNegotiable: Docs Available: iExcl Sale: iTax Rate: Assmt: Assmt Yr: jTax Glass: Unadjusted Taxes: Tax Reduct: No iElderly: Veteran: Other: lCovenant: No Source SqFt: County: Carroll iRecorded Deed: BooUPg: 1614/ 568 Plan/Survey: lMap/Blck/Lot: 471 I 114 Property lD: SPAN # (VT): - i Devel/Subd¡v: Kl LNWOOD Gonst. Status: Home Energy Rating lndex: .District: Moultonborough High Sch: Jr./Mid Sch: ,Elem Sch: Cable: Electric Co: rFuel Co: Phone Co: Resort: Timeshare/Fract. Ownrshp: # Weeks: Timeshare %: iClosed Date: 0813012002 DOM/DUC: 74137 PREPARED BY William Richards Email : [email protected]

Coldwell Banker RB/Center Harbor oJf. ÌhË: (609) ?53-a3a5 PO Box 161 Agt. Ph#: (603) 253-4345 ext. 125 Center Harbor, NH 03226 Cell Ph#:0- Lister: Scott Rolfe of Coldwell Banker RBicenter Herbor Fax Ph#: (603) 253-8150 ìwww nemoves com/bill richards. home www nemoves com;

KILN000020 U3U20tI Customer Display Page 5 of 18

9 WILLOW TERRACE Residential L $179,OOO '753664 Closed c$175,OOO Zoning: RES Rooms: I Year Built: 98 Bedrooms: 3 Color: TAN Total Baths: Taxes: $ 2,505.00 Full: Taxes TBD: 3/4 Baths: Tax Year: 1/2 Baths: Monthly Assoc.$: $ Garage Capacity 2 Lot Acre: .80 Garage Type: Attached Lot SqFt: 34,848 Total Fin SqFt: 1,836 Common Land Acres: Apx Fin Above Grd: I,836 Road Frontage: Apx Fin Below Grd: Water Frontage: 985 Foot Print: 34X30 Water Acc Type: Flood Zone: Unknown # of Stories: Style: Water Body Type: Water Body Restr.: Surveyed: Unknown Seasonal: No Water Body Name: KANASATKA CurrenUland Use: Land Gains: Owned Land: Parcel Access ROW: ROW for other Parcel: ROWWidth: ROW Lenqth: iPublic REmS: ENJOY LK KANASATKAI LOVELY OPEN CONCEPT HM NESTLED IN WATER ACCESS COMMUNITY, SHARED BEACH, , DOCKING BY LOTTERY, CANOE RACKS, CHANGING ROOMS, TENNIS COURT, CATHEDRAL CEIL., SCREEN PORCH WOOD : FLRS,2318 BR lDirections: CENTER HARBOR TO BEAN RD, RT ON SIBLEY, R ON KILNWOOD, L. ON BRICK KILN, R. ON WLLOW ¡ROOM DIMS LEVEL ROOM DIMS LEVEL FLOOR BR FB 314 112 :Living Rm 15X16 1 Master BR 10x14 1 1st 1100 i K¡tchen 8X9 1 2nd BR 10x11 2 2nd 3100 iDining Rm 13X14 1 3rd BR 11X12 2 3rd 0000 lFamily Rm 10x23 4th BR 10x1 1 2 4th 'Office/Study sth BR Bsmt ,Utility Rm Den ,Other Rm 1 Other Rm 3 2 :Other Rm 2

Assoc Amenities: Possession: jnterior Feat.: Exterior Feat.: )Basement: Equip./Appl.: ìDriveway: Electric: ,Construction: Exterior: ;Financing: Foundation: ;Floors: Heating/Cool: :Garage/Park: Lot Desc:

, Heat Fuel: Occ. Restrictions: !Roads: Roof: ìSewer: Water: 'Suitable Land Use: ,Fee lncludes: Water Heater: Disability: Building Certs: :Negotiable: Docs Available: lExcl Sale: iTax Rate: $14.58 Assmt: $171 ,800.00 Assmt Yr: 99 jTax Class: Unadjusted Taxes: Tax Reduct: No ;Elderly: Veteran: Other: ¡Covenant: Yes Source SqFt: County: Carroll iRecorded Deed: Book/Pg: 17221 433 Plan/Survey: :Map/BlcUlot: 471 192 Property lD: SPAN # (VT): - Devel/S ubdiv: KI LNWOOD Const. Status: Home Energy Rating lndex: iDistr¡ct: MOULTONBORO High Sch: MOULT Jr./Mid Sch: MOULT .Elem Sch: MOULT Cable: Electric Co: rFuel Co: Phone Co: Resort: i Timeshare/Fract. Ownrshp: # Weeks: Timeshare %:

1 Closed Datet 10127 12000 DOM/DUC: 176 137 PREPARED BY William Richards Email : [email protected] Coldwell Banker RB/Center Harbor Off. Ph# : (603) 253-4345 PO Box 161 Agt. Ph#: (603) 253-4345 ext. 125 Center Harbor, NH 03226 Cell Ph#:0- Lister: Franc¡s Roche of Roche Realty Group Fax Ph#: (603) 253-8150

KILN000021 113U20t1 Customer Display Page 7 of 18

HORNBEAM HOLLOW Residential L $2O9,9O0 '547883 Closed c$19O,OOO

Zoning: RES Rooms: 7 Year Built: 1 998 Bedrooms: 3 Color: TBD Total Baths: 4 Taxes: $ 205.00 Full: 3 Taxes TBD: 3/4 Baths: 0 Tax Year: 1997 1/2 Baths: 1 Monthly Assoc.$: $350 Garage Capacity 0 Lot Acre: .75 Garage Type: None Lot SqFt: 32,835 Total Fin SqFt: 2,800 Common Land Acres: Apx Fin Above Grd: 2,800 Road Frontage: 169 Apx Fin Below Grd: Water Frontage: Foot Print: 44X42 Water Acc Type: Flood Zone: No # of Stories: Style: ,Water Body Type: Water Body Restr.: Surveyed: Unknown Seasonal: iWater Body Name: KANASATKA CurrenUland Use: Land Gains: Owned Land: Parcel Access ROW: ROW for other Parcel: ROWWdth: ROW Length: .ìPub|ic Rems: NEW CONTEMPORARY LOCATED IN LIGHT PRIVATE LOCATION ABUTTING COMMON AREA. HUGE LIVING ROOM WiGAS FIRE- PLACE. AMMENITIES INCLUDE TENNIS, DOCKING QUIET COMMUNITY ON I.AKE KANASATKA. SEE THIS LOVELY HOME WITH MANY EXTRAS TODAY. , Directions: BEAN RD-R SIBLEY-R KILNWOOD-L HORNBEAM HOLLOW.HOUSE ON L. ROOM DIMS LEVEL ROOM DIMS LEVEL FLOOR BR FB 314 112 :Living Rm 17X18 I Master BR 14X15 1 1st 1100 Kitchen 13X23 1 2nd BR 10x10 2 2nd 2100 iDining Rm 12X19 1 3rd BR 14X15 2 3rd 0000 ,Family Rm 17X42 4th BR 4th .Office/Study sth BR Bsmt 'Utility Rm Den iOther Rm I B Other Rm 3 B iOthe¡ Rm 2

Assoc Amenities: Possession: ìnterior Feat.: : Exterior Feat,: ,Basement: lEquip./Appl.: ¡Driveway: Electric: ,Construction: Exterior: , Financing: Foundation: lFloors: Heating/Cool: :Garage/Park: Lot Desc: :Heat Fuel: Occ. Restrictions: rRoads: Roof: ,Sewer: Water: iSuitable Land Use: rFee lncludes: Water Heater: lDisability: Building Certs: ?Negotiable: Docs Available: lExcl Sale: lTax Rate, Assmt: Assmt Yr: ;Tax Class: Unadjusted Taxes: Tax Reduct: No iElderly: Veteran: Other: ,Covenant: jRecorded Source SqFt: County: Canoll Deed: Warranty Book/Pg: 13601 257 Plan/Survey: ,Map/Blck/Lot: 47t t 108 Property lD: SPAN #(VT);- : Devel/Subdiv: Kl LNWOOD Const. Status: Home Energy Rating lndex: iDistrict: High Sch: Jr,/Mid Sch: iElem Sch: Cable: Electric Co: iFuel Co: Phone Co: Resort: i Timeshare/Fract. Ownrshp: # Weeks: Timeshare %: lClosed Date: 0l113/1999 DOM/DUC: 91 122

PREPARED BY 11 tMlliam Richards Email : [email protected] Coldwell Banker RB/Center Ha¡bor Off. Ph# : (603) 253-4345

PO Box 161 Agt. Ph#: (603) 253-4345 ext. 125 Center Harbor, NH 03226 Cell Ph#:0- Lister: Scott Rolfe of Coldwell Banker RB/Center Harbor Fax Ph#: (603) 253-8150

KILN000022 l/3t/2011 Customer Display Page 9 of 18

44 Kilnwood Landinq Residential L ç247,OOO 2722792 Closed c$225,00O

Zoning: Residential Rooms: 6 Year Built: 1973 Bedrooms: 2 Color: Brown Total Baths: 2 Taxes: s 1,744.00 Full: 2 Taxes TBD: 3/4 Baths: 0 Tax Year: 2007 1/2 Baths: 0 Monthly Assoc.$: $63 Garage Capacity 1 .77 Garage Type: Attached Lot SqFt: 33,541 Total Fin SqFt: I ,1 1 9 Common Land Acres: ApxFinAboveGrd: I,119 Road Frontage: Apx Fin Below Grd: 0 Water Frontage: Foot Print: Water Acc Type: Shared Private Flood Zone: Unknown # of Stories: I Style: Ranch ;Water Body Type: Lake Water Body Restr.: Surveyed: Unknown Seasonal: No 'Water Body Name: Kanasatka CurrenULand Use: No Land Gains: Owned Land: Parcel Access ROW: ROW for other Parcel: ROWWidth: ROW Length: Public Rems: Rare opportunity for Lake Kanasatka access! This well maintained 2 bedroom home shares beach rights, tennis courts and boat docks as a member of Kilnwood on Kanasatka. 'Directions:-Take Bean Road from Center Harbor lights about 1 'l12 miles. Take right onto Sibley. Then Right onto Kilnwood Landing. First House on , right :ROOM DIMS LEVEL ROOM DMS LEVEL FLOOR BR FB 3t4 112 Living Rm Master BR lst 0 000 , Kitchen 2nd BR 2nd 0 000 ìoin¡ng Rm 3rd BR 3rd 0 000 :Family Rm 4th BR 4th Office/Study sth BR Bsmt 0 Utility Rm Den Other Rm 1 Other Rm 3 lOther Rm 2

Assoc Amenities: Possession: lnterior Feat.: 'Exterior Feat.: Beach Rights , Tennis Court rBasement: Slab Equip./Appl.: Air Conditioner, Antenna , Dishwasher , Dryer , Range-Electric , Washer, Wood Stove iDr¡veway: Paved Electric: 200 Amp iconstruction: Wood Frame Exterior: Wood ,Financing: Foundation: Concrete .Floors: Heating/Gool: Central Air , Hot Air , Stove 'Garage/Park: Attached Lot Desc: Level , Water View ,HeatFuel: Gas-LP/Bottle Occ. Restrictions: Roads: Association Roof: Shingle-Asphalt ;Sewer: Septic Water: Community :Suitable Land Use: ,Fee lncludes: Water Heater: Electric , Other , Disability: Building Certs: iNegotiable: Docs Available: :Excl Sale: ìTax Rate: $6 99 Assmt: $249,500.00 Assmt Yr: 2007 ,Tax Class: Unadjusted Taxes: Tax Reduct: Unknown ,Elderly: Veteran: Yes Other: :Covenant: Unknown Source SqFt: County: Carroll jRecorded Deed: Warranty Book/Pg: 1640/ 880 Plan/Survey: iMap/Blck/Lot: 1O6t t 22 Property lD: SPAN #(VT):- i Devel/Subdiv:Kilnwood Const. Status: Existing Home Energy Rating lndex: I District: Moultonborough High Sch: Moultonborough Academy Jr./Mid Sch: Moultonborough Academy lElem Sch: Moultonborough Gentral School Cable: Electric Co: :Fuel Co: Phone Co: Resort: ; Timeshare/Fract. Ownrshp : # Weeks: Timeshare 7o: ¡Closed Date: 07 12512008 DOM/DUC: 43 123

William Richards Email : [email protected] Coldwell Banker RB/Center Harbor Otr Ph#: (603) 253-4345 Agt. Ph# : (603) 2s3- PO Box 161 4345 exl. 125 Center Harbor, NH 03226 Cell Ph#:0- Lister: Agent House Lamprey of Lamprey and Lamprey Fax Ph#: (603) 253-8150 Realtors/Meredi

KILN000023 U3|20rt Customer Display

9 BRICK KILN ROAD 'Residential \u '.L43644 Closed GI

Zoning: RESIDENTIAL Rooms: 5 Year Built: '1977 Bedrooms: 2 Color: GREY Total Baths: 2 Taxes: $ 1,582.00 Full: 2 Taxes TBD: 3/4 Baths: 0 Tax Year: 2003 1/2 Baths: 0 Monthly Assoc.$: $ Garage Capacity 2 Lot Acre: .79 Garage Type: Detached Lot SqFt: 34,238 Total Fin SqFt: 1,152 Common Land Acres: Apx Fin Above Grd: 1,152 Road Frontage: Apx Fin Below Grd: Water Frontage: 1,945 Foot Print: Water Acc Type: Flood Zone: # of Stories: 1 Style: rWater Body Type: Water Body Restr,: Surveyed: Yes Seasonal: iWater Body Name: IGNASATKA GurrenULand Use: Land Gains: Owned Land: Pa rcel Access ROW: ROW for other Parcel: ROWWidth: ROW Lenqth: ;Public Rems: BEAUTIFULLY MAINTAINED HOME NEAR LOVELY BEACH, BOAT LAUNCH DOCKS ON KANASATKA. SEASONAL LAKE ¡ VIEWS! BRUCE HW FLOORS, BRICK WALL FP / HEATII.ATOR, DET. GAR.MORKSHOP PERFECT FOR HANDYMAN!4 , BEDROOM SEPTIC SYS. FOR FUTURE EXPANSION. CONTINUE TO SHOWI!! Directions: BEAN RD. TO SIBLEY - RT. ON KILNWOOD - LEFT ON BRICK KILN TO #9.

¡ROOM DIMS LEVEL ROOM DIMS LEVEL FLOOR BR FB 3t4 ',ll2 .Living Rm 1 Master BR 'l 1st 20 00 ;Kitchen 1 2nd BR I 2nd 00 00 rDining Rm 1 3rd BR 3rd 00 00 ;Family Rm 4th BR 4th jOffice/Study sth BR Bsmt 02 00 lUtility Rm Den iOther Rm 1 Other Rm 3 iOther Rm 2

Possession:

Electric: Circuit Breaker(s) Exterior: Clapboard , Wood Foundation: Concrete Heating/Cool: Storage Electric

Detached Lot Desc: Deed Restricted , Landscaped , ROW to Water , Water View , Wooded :Heat Fuel: Elech¡c Occ. Restrictions: iRoads: Association , Private Roof: Shingle-Asphalt isewer: 1000 Gallon , Private , Septic Water: Community , Shared iSu¡ta¡le Land use: ;Fee lncludes: Water Heater: Elechic lDisability: Building Certs: iNegotiable: Docs Available: ;Excl Sale: iTax Rate: $12.18 Assmt: $129,900.00 Assmt Yr: :Tax Class: Unadjusted Taxes: Tax Reduct: No letaerty: Veteran: Other: tCovenant: No Source SqFt: County: Carroll ;Recorded Deed: BooUPgr 595/ 289 Plan/Survey: iMap/BlcUlot: 471 I 112 Property lD: SPAN # (W): - ¡ Devel/Subdiv: Kl LNWOOD Const. Status: Home Energy Rating lndex: i District: Moultonborough High Sch: Moultonborough Academy Jr./Mid Sch: Moultonborough Academy jElem Sch: Moultonborough Central School Cable: Electric Co: lFuel Co: Phone Go: Resort: i Timeshare/Fract. Ownrshp: # Weeks: Timeshare %: i Closed Date: 07 12612004 DOM/DUC: 49 I 49 PREPARE BY William Richards Email i [email protected] Coldwell Banker RB/Center Harbor Off. Ph#: (603) 253-a345 PO Box 161 Agt. Ph#: (603) 253-4345 ext 125

Center Harbor, NH 03226 Cell Ph#: 0 - Lister: Patricia Brewitt of Coldwell Benker RB/Wolfeboro Fax Ph#: (603) 253-8150

KILN000024 113U2011 Customer Display Page 13 of18

Landinq :Residential 64 Kilnwood L $299,9OO '25OO1O Closed c$275,OOO

Zon¡ng: RES Rooms: 7 Year Built: 1 960 Bedrooms: 3 Color: Brown Total Baths: 2 Taxes: $ r,601 00 Full: 2 Taxes TBD: 3/4 Baths: 0 Tax Year: 2005 1/2 Baths: 0 Monthly Assoc.$: $ Garage Capacity 2 Lot Acre: .70 Garage Type: Detached Lot SqFt: 30,491 Total Fin SqFt: 2,200 Common Land Acres: Apx Fin Above Grd: 1,248 Road Frontage: 200 Apx Fin Below Grd: 952 Water Frontage: 1,945 Foot Print: 24X36 Water Acc Type: Flood Zone: No # of Stories: Style: Ranch Body Type: Water Body Restr.: Surueyed: Yes Seasonal: Body Name: Lake Kanasatka CurrenUland Use: Land Gains: Owned Land: Parcel Access ROW: ROW for other Parcel: ROWWidth: ROW Lensth: Public Rems: Great location...just steps away from sandy beach boat docks, this yr -rd. ranch is waiting for your decorating ideas. A real gem, so many possibilitiesl Lake Kanasatka access opportunity in desirable Kilnwood won't last lonq! Docks assiqned annually. ìDirections:Route 25 to Bean Road, approx. 3 miles to right on to Sibley Road. Go approx. 2 miles to right into Kilnwood at Kilnwood Landing, straight i to #64 on right jROOM DIMS LEVEL ROOM DIMS LEVEL FLOOR BR FB 314 112 ;Living Rm 12X16 1 Master BR 11X14 ,| 1st 3200 'Kitchen 11X11 1 2nd BR 11X11 1 2nd 0000 :Dining Rm 12X12 I 3¡d BR 11X11 'l 3rd 0000 Family Rm 17X22 B 4th BR 10x17 B 4th Office/Study sth BR Bsmt 1000 iUtility Rm Den ,Othe¡ Rm 1 Other Rm 3 ;Other Rm 2

Assoc Amenities: Possession: interior Feat.: Cathedral Ceilings , Ceiling Fan , Fireplace-Wood , Laundry Hook-ups , Master BR with BA , Mudroom , Skylight , Wood Stove Hook- up Beach Rights , Boat Mooring , BoaVSlip Dock , Deck , Out Building , Patio , Tennis Court Crawl Space , Finished , Full Central Vacuum , Dryer , Range-Electric , Refrigerator, Washer , Wood Stove Paved Electric: 200 Amp Modular Prefab Exterior: r-1',t1 Foundation: Concrete Heating/Cool: Baseboard , Hot Air , Stove

Detached Lot Desc: Level , ROW to Water , Subdivision , Water View , Wooded 'Heat Fuel: Electric , Wood Occ. Restrictions: ;Roads: Association , Private Roof: Shingle-Asphalt lSewer: Private Water: Community, Private, Shared ,Suitable Land Use: iFee lncludes: 'Disability: Water Heater: Electric Building Certs: ¡Negotiable: Docs Available: ;Excl Sale: .Tax Rate: $6.79 Assmt: $235,800 00 Assmt Yr: 5 :Tax Class: Unadjusted Taxes: Tax Reduct: No :Elderly: Veteran: Other: ìCovenant: No Sou¡ce SqFt: muni County: Carroll lRecorded Deed: Warranty BooUPg: 11141 230 Plan/Survey: lMap/BlcULot: 0471 I 103 Property lD: SPAN # (VT): - i Devel/S ubdív: Kilnwood Gonst. Status: Home Energy Rating lndex: i District: Moultonborough High Sch: Moultonborough Academy Jr./Mid Sch: Moultonborough Academy lElem Sch: Moultonborough Central School Gable: Electric Co: ;Fuel Co: Phone Go: Reso¡f :

ì Timeshare/Fract. Ownrshp: # Weeks: Timeshare %: iGlosed Date: 0412412006 DOM/DUC: 22 I 44 PREPA William Richards Email : [email protected] Coldwell Banker RB/Center Harbor Off. Ph#: (603) 253-4345

PO Box 161 Agt. Ph# : (603) 253-4345 ext. 125 Center Harbor, NH 03226 Cell Ph#:0-

KILN000025 113U2011 Customer Display

Residential 9 BRICK KILN ROAD 247920 Closed

Zoning: RES. WATER ACC Rooms: 5 Year Built: 1977 Bedrooms: 2 Color: DARK GRE Total Baths: 2 Taxes: $ 1,5s3.00 Full: 2 Taxes TBD: 3/4 Baths: 0 Tax Year: 2005 1/2 Baths: 0 Monthly Assoc.$: $ Garage Capacity 2 Lot Acre: .70 Garage Type: Lot SqFt: 30,491 Total Fin SqFt: Gommon Land Acres: Apx Fin Above Grd: Road Frontage: Apx Fin Below Grd: Water Frontage: 1,945 Foot Print: Water Acc Type: Flood Zone: No # of Stories: 1 Style: Ranch Water Body Restr.: Surveyed: Yes Seasonal: No I(ANASATKA CurrenUland Use: Land Gains: Owned Land: iParcel Access ROW: ROW for other Parcel: ROW Length: iPUbI¡C REMS: PRISTINE GEM NEAR LOVELY BEACH, BOAT DOCKS ON KANASATKA BOASTS SEASONAL L.AKE VIEWS, BRUCE HW I FLOORS, BRICKWALL FP/HEATIIáTOR! DET GAR.M/ORKSHOP 24X32 WITH ELECTRIC.4BR SEPTIC FOR EXPANSION. DOCKS ASSIGNED ANNUALLY. :-Directions: FROM CENTER HBR., BEAN ROAD, RIGHT ON SIBLEY, RIGHT ON KILNWOOD. LEFT ON BRICK KILN TO #9. .ROOM DIMS LEVEL ROOM DIMS LEVEL FLOOR BR FB 3t4 'U2 12 6 X17 1 Master BR 116X15 'l 1st22 00 IXll 1 2nd BR 116X12 1 2nd00 00 9 6 X15 6 1 3rd BR 3rd00 00 4th BR 4th sth BR Bsmt 0 0 00 Den Other Rm 3

Circuit Breake(s) Clapboard , Wood Concrete Storage Electric

Detached Deed Restricted , Landscaped , ROW to Water , WaterView, Wooded Heat Fuel: Electric Occ, Restrictions: ;Roads: Association , Private Roof: Shingle-Asphalt ;Sewer: 1000 Gallon , Private , Septic Water: Community , Shared iSuitable Land Use: iFee lncludes: Water Heater: Electric ìDisabil¡ty: Building Certs: iNegotiable: Docs Available: ;Excl Sale: i-^-- n^--- iTax Rate: $6.79 Assmt: $228,800.00 Assmt Yr: jTax Class: Unadjusted Taxes: Tax Reduct: No ;Elderly: Veteran: Other: ¡Covenant: No Source SqFt: County: Carroll jRecorded Deed: Warranty BooUPg: 23211 0703 Plan/Survey: lMap/Blck/Lot: 471 I 112 Property lD: SPAN # (VT):: ì Devel/Subdiv: Kl LNWOOD Const. Status: Existing Home Energy Rating lndex:

¡ District: Moultonborough High Sch: Moultonborough Academy Jr./Mid Sch: Moultonborough Academy iElem Sch: Moultonborough Central School Cable: Electric Co: jFuel Co: Phone Co: Resort:

¡ Timeshare/Fract. Ownrshp: # Weeks: Timeshare %: iClosed Date: 10/03/2006 DOM/DUC: 181 / 60

Coldwell Banker RB/Center Harbor Off. Ph#: (603) 253-4345 PO Box 161 Agt. Ph#: (603) 253-4345 ext. 125 Center Harbor, NH 03226 Cell Ph#:0- I Lister: Patricia Brewitt of Coldwell Banker RBiwolfeboro Fax Ph# : (603) 253-8150 KILN000026 113U20rr Customer Display Page 17 of 18

.Residential 15 Hornbeam Hollow \,o, L $329,ooo ,2772OLO Closed (a c$3lo,ooo Zoning: RESIDENTIAL Rooms: I Year Built: 1 997 Bedrooms: J Golo¡: White Total Baths: 4 $ 3,126.8'1 Full: 3 Taxes TBD: No 3/4 Baths: 0 TaxYear: 2008 l/2 Baths: 1 Monthly Assoc.$: $ Garage Capacity 2 Lot Acre: .65 Garage Type: Attached Lot SqFt: 28,314 Total Fin SqFt: 3,261 Common Land Acres: Apx Fin Above Grd: 1,963 Road Frontage: Apx Fin Below Grd: 1,298 Water Frontage: 150 Foot Print: 26 x44 Water Acc Type: Shared Private Flood Zone: No # of Stories: 1 1t2 Style: Contemporary Water Body Type: Lake Water Body Restr.: Surveyed: Yes Seasonal: No Water Body Name: Kanasatka CurrenULand Use: No Land Gains: Owned Land: 'Parcel Access ROW: ROW for other Parcel: ROWWidth: ROW Length: Public Rems: A water access home at Kilnwood Landing that is ready for you today. Not even l/1Oth a mile to the sandy shared beach/boat sl¡ on Lake Kanasatka This is a perfect vacation or primary home. Private wooded lol, 2 cÆ gaege w/storage, screen porch, full/finished walkout lower level, plenty of sleeping room in super shape and available now.... Directions: Bean Road to Sibley Road to Kilnwood to Hornbeam Hollow ROOM DIMS LEVEL ROOM DIMS LEVEL FLOOR BR FB 314 1t2 Living Rm 17x18 1 Master BR 14x14 1 1st 110 1 Kitchen 9x23 1 2nd BR 14x15 2 2nd 210 0 Dining Rm 12x 18 1 3rd BR 10 x 10 2 3td 000 0 Family Rm 16x25 B 4Ih BR 4th Office/Study sth BR Bsmt 010 0 Utility Rm Den Other Rm I Other Rm 3 Other Rm 2

Assoc Amen¡ties: Possession: jnter¡or Feat.: I st Floor Laundry , 1 st Floor Master BR , Cable , Cable lnternet , Cathedral Ceilings , Ceiling Fan , Dining Area , Eat-in Kitchen , Fireplace-Gas , Hot Tub , Laundry Hook-ups , Master BR with BA , Mudroom , Pantry , Whirlpool Tub 'Exterior Feat.: Beach Rights , BoaVSlip Dock, Deck, Screened Porch 'Basement: Finished , Full , Walk Out Equip./Appl.: Central Vacuum , Dishwasher , Dryer , Microwave , Range-Gas , Refrigerator, Washer , Window Treatment :Driveway: Paved Electric: 200 Amp Circuit Breake(s) .Construct¡on: , Wood Frame Exterior: Cement , Clapboard iFinancing: Foundation: Concrete .Floors: Heating/Cool: Baseboard, HotWater, Multi Zone )Garage/Park: 6+ Parking Spaces , Attached , Auto Open , Direct Entry , Lot Desc: Landscaped , ROW to Water , Wooded , Storage Above ,HeatFuel: Gas-LP/Bottle Occ. Restrictions: ,Roads: Association , Gravel Roof: Shingle-Asphalt :Sewer: 1250 Gallon , Concrete , Leach Field , Private Water: Community :Suitable Land Use: lFee lncludes: Recreational Water Heater: Gas-Natural , Off Boiler Disability: Building Certs: lNegotiable: Docs Available: ;Excl Sale: ,Tax Rate: $7.66 Assmt: $408,200.00 Assmt Yr: 2008 Tax Class: Unadjusted Taxes: Tax Reduct: No jElderly: No Veteran: No Other: No jCovenant: Yes Source SqFt: Msrd County: Carroll :Recorded Deed: Wanang BooUPg: 18971 434 Plan/Survey: ¡Map/BlcUlot: 1061 123 Property lD: SPAN # (VT): - , Devel/Subdiv: Kilnwood Const. Status: Existing Home Energy Rating lndex: District: Moultonborough High Sch: Moultonborough Academy Jr./Mid Sch: Moultonborough Academy ìElem Sch: Moultonborough Central School Cable: Electric Co: Fuel Co: Phone Co: Resort:

; Timeshare/Fract. Ownrsh p: # Weeks: Timeshare %: Closed Date: 03/05/201 0 DOM/DUC: 266 I 59 B William Richards Email : [email protected] Coldwell Banker RB/Center Harbor Off. Ph# : (603) 253-4345

PO Box 161 Agt. Ph#: (603) 253-4345 ext. 125 Center Harbor, NH 03226 Cell Ph#:0-

KILN000027 113U20r1 ragc or ru

(603) : .r:i¡;, Goldwell Banker RBlCentcr Harbor Off. Plt# : 253'434 i , PO Box 16l Agú. Pl# : (603) 25134345 ext. 125 i l Gell Ph#: 0 - Fax Pl*: (603) 253Sl5O I

I wwlfl,nemoves.oom pfior noüce. Tle agency reËrenced may olmay r¡qt be ttle l¡sting agency ftr this poperty. i SuÞþd to enors, om¡ssiqrs, sale, cflange or withdrawel wittpr¡t .

2/u20tl KILN000028 r4ówJvrlv

42 Lakeshore Dr¡ve Unit# A-5 Condo L 2832932 Active $199,5OO

Zoning: ReslJential Rooms: 2 Year Built: 1962 Bedroqns: 1 Color: Gray Total Baths: 2 Taxes: $ I,230.00 Full: 1 TaxesTBD: No 3I4 Baths: 0 TaxYear: 2O1O ll2 Baths: 1 Monthly Assoc.$: $ Garage Capacity 0 Lot Acr€: 1.05 Garage Type: None Lot SqFt: 45,738 Total Fin SqFt: 785 Common Land Ac¡: Apx Fin Above Grd: 785 Road Frontage: Yes/ 165 Apx Fin Belov Grd: 0 Water Frontage: 165 Foot Print: Water Acc Type: Sharcd Private Flood Zone: Unknown # of Storles: 1 Style: Other Water Body Type: Lake Water Body Restr.: Surveyed: Yes Seasonal: No Water Body Name: Winnipesaukee CurrenULand Use: Land Gains: Owned L¡nd: Parcel Access ROW: ROWfor other Parcel: ROWWidtlr: ROW Length: Public Rems: Stunning lake and mountain views from this Moultonborough Lake Winnipessaukee waterfront condo. Fabulous all day sun. Nothing to do, but enjoy this condominium directly on . Located just 5 minutes from Center Harbor and Moultonborough shops, restaurants and amenities. Beautiful level sandy beacfr, Southem exposure, Association docks, and a day dock. ì/\ftthin easy walking distance to Center Harbor. A rare find!Won't last at this price. Directions: Route 25 to Center Harbor, bear rþht onto Lake Shore Drive, condo on rþht. i __ APPROXIMATE ROOH DIMENSIONS - ROOT DIMS LEVEL ROOM DIMS LEI/EL FLOOR BR FB II¿ 1N Living Rm 't6 X 13 llæter BR 15 X 14 lst 0 000 Kitchen 2nd BR 2nd 0 000 Dining Rm 3rd BR 3rd 0 000 Family Rm ¡l$ BR ¿tth Ofñce/Study sth BR Bsmt 0 tft¡l¡ty Rm Den Other Rm t Other Rm 3 Other Rm 2 ONLY ^rndo Narne: Floor: ìlding #: Lim¡ted Gommon Area: -ondo Assoc Fees: $1,200

issoc Amenities: Interior Feat : lst Floor Laundry , Dining Aæa Exterio¡ FeaL: Beach Rights , Boat Mooring , BoaVSlip Dock Basement: Other Equip./Appl.: AirConditioner, Range-Electric, Refrigerator Driveway: Common/Shared , Paved Electric: Circuit Breaker(s) Construction: Wood Frame, Other Exterior: Other Financing: Foundation: Concrete , Other Floors: Heating/Cool: Radiator Garage/Parft: 2 Parking Spaces Lot Desc: Waterfront Heat Fuel: Electric Occ. Restictions: Roads: Association Roof: Shingle-Fiberglass , Tar and Grevel , Other Sewer: Public Water: Public Suitable Land Use: Fee lncludes: Water Heater: Electric Disability: Building Gerts: Negotiable: Docs Available: Excl Sale: Tax Rate: Assmt: $159,700.00 Assmt Yr: Tax Class: Unadjusted Taxes: TaxReduct: No Elderly: Vetercn: Other: Govenant: Yes Source SqFt: Muni County: Carroll Recorded Deed: Wananty BooUPg: 26191640 Plan/Survey: ilaflBlck/LoÍ 169/ / 055 Property lD: SPAN # (VT): - [þveUSubdiv:Staffordshire Condo Assoc Gonst Status: Existing Home Energy Rating lndex: Distict: Moultonborough High Sch: Moultonborough Academy JrJillid Sch: Moultonborough Academy EIem Sch: Moultonborough Central School Gable: Electric Co: Fuel Go: Phone Go: Resort: TimesharelFracl Ownrshp: No # Weeks: Timeshare o/o: DOil: 277 PREPARED BY ì,Villiam Richards Ema¡l : [email protected]

2/u20tt

KILN000029 rag€ r ur ru

16 lono Island Road Unit# 12 Condo L S59,9OO 2Af-A773 Active Zon¡ng: SFR Rooms: 0 Year Built: 0 Bedrooms: 0 Color: Total Baths: 0 Taxes: $ 555.00 Full: 0 Taxes TBD: 3/¡l Baths: 0 Tax Year: 2010 ll2 Baths: 0 ilonthly Assoc.$: $50 Garage Gapacity 0 LotAcrc: 4.83 Garage Type: None Lot SqFt: 210,395 Total Fin SqFt: 0 Gornmon Land Acrcs: Apx Fin Above Grd: 0 Road Frontage: No Apx Fin Belov Grd: 0 Water Frontage: 0 Foot Print: Water Acc Type: Shared Private Flood Zone: Unknown # of Sto¡ies: 1 Style: Other Wabr Body Type: Lake Water Bodtr Restr.: Surveyed: Yes Seasonal: Yes Water Body Name: Winnipesaukee GunenULand Use: No Land Gains: Owned Land: ParcelAccæss ROW: ROWfor other Parcel: ROWWidrh: ROW Length: 'rce Public Rerns: 25'Condo slip in desirable Quayside. Water, baths/showers, grill area, paùing, electricty all induded. Cable, and pump out available. L¡ttle money to enjoy the Bþ Lake !! Plan now for summer 2010. Directions:Rte 25 to Long lsland Road Moultonborough. Quayaside is on the right just bebre the Long lsland Bridge. Slip 12 is on the right if you are facing the lake. rpÞnoxruere riôolr oiueÑSiottS ROOM D|MS LE1/EL ROOTII DIMS LEVEL FLOOR BR FI 3,14 n 0 ,LMng Rm lraster BR lst 000 Kitchen 2nd BR 2nd 000 0 Dining Rm 3rd BR 3rd 000 0 Family Rm ,lth BR 4ül OfñcefStudy 5th BR Bsmt 0 Ut¡lity Rm Den 'Ofier Rm I Other Rm 3 Ofter Rm 2

I 9-oN-Dq ü_sE_ o¡¡l- t.______, _- JõR Condo Name: Gondo Unit #: 12 Floor: .ilding #: # UnitslBuildlng: 0 Limited GommonArca: hdoAssocFees: $50 SpecialAssessment: Yes FEATU RES Assoc Amenities: Possession: lnterior Feat: Cable Exterior FeaL: BoaUSlip Dock Basement: Other Equip.lAppl.: Driveway: Paved, Other Electric: Other Constsuction: Other Exterior: Other Financing: Foundation: Other F¡oors: Heating/Gool: Other Garage/Parft: Lot Desc: Deed Restricted , Easement, ROWto Water, Water Mew, Waterftont Heat Fuel: Other Occ. Restrictions: Roads: Public Roof: Other Sewer: Other Water: Other Suitable Land Use: Fee lncludes: Electric, Sewer, Trash Water Heater: Other Disability: Building Gerts: Negotiable: Docs Available: E¡

2/1l20tt

KILN000030 ', , Gold¡velt Banker RB/Centar Harbor Ofr. PM: (603) 2534345 ' t. '. FO Box 16l Agt Pt#: (603) 2534345 ext. 125

Gell Ph#: - Fax Ph#: (603) 253S150

luflrc. nemoves. oom/bill. deåads. home wìftìfl.nemoves.æm Subþct to erors, omissþns, prior saþ, cñange or w¡tMrawal ryithout nolho. The agensy reÊrenoed may or may not be ttÞ l¡sling agency þr ttr's properry. Cowfight20OgNortleÍiNewErighndReal EsúaþNet$,otçlnc.O2101l2O1l 1l:254M PrintedBy:Wll¡amRidlards

2lU20t1

KILN000031 Bldq 32 Topside Road Unit# 3 Condo Moultonborouqh, New Hampshire O3254 L $495,OOO 4O257O3 Active Zonlng: PW Rooms: 13 Year Built: 1987 Bedrooms: 4 Golor: Tan Total Baths: 4 Taxes: $ 3,892.00 Full: 3 TaxesTBD: No 3I¡l Baths: I TaxYear: 2009 ll2 Batls: 0 Monthly Assoc.$: $ Garage Gapacity 1 Lot Acre: 59.00 GarageType: Detached Lot SqFt: 2,570,U0 Total Fin SqFû 3,600 Gommon l¡nd Acrcs: Apx Fin Above Grd: 2,600 Road Frontaç: No Apx Fin Belw Grd: 1,000 Water Frontage: 540 Foot Prinfi 33x41 Water Acc Type: Shared Private FloodZone: No # of Stories: 3 Style: Townhouse Water Body Type: Lake Water Body Restr.: Suweyed: Yes Seasonal: No Water gody Nä-me: Winnipesaukee GurrenULand U ie: L¡nd Gains: Owned l-and: Parcel Access ROW: ROW for other Parcel: ROW tMdth: ROW Lengúh: Public Rems:

irs

deeded boat slip for a 25'boat and "a day on the lake". D¡rec{ions:Rt 25 to Moultonboro Neck Road to the end, over the Long lsland Bridge and continue unt¡l you see Jonathan's landing sign on the right. Take Westwinds Road at the sign. Take the first right by tñe JonathanÈ Landing sþn London Hill Road. Go up the hill and take the l st right onto To_p¡kl9 !o{. 4!¡Ee¡t¡4 rE R o-¡'l,r p LM É ñ sio¡ 5 ROOT DITIS LEVEL ROOM DIMS LEVEL FLOOR BR FB tt+ iti L¡ving Rm 1tx20 1 Master BR 't6'3',t11'6" 2 lst 1 1 Kitchen I 1 '5'11 1'1 0" 'l 2nd BR 12'8'115'4' 1 2nd22 Dining Rm 12x12 I 3rd BR 16t13'2" 2 3rd Famiþ Rrn 17'6"x18'10' B ¡lth BR 16'3'111'8" B ¡fth Office/Study l3'9\11'7"Sunrm 1 sth BR Bsmt 'l 1 Ut¡lity Rm 13'14' B Den Deeded Dock þ-er Rm I 12'x9'10" B Other Rm 3 9'3"x5'9" 1 herRm 2 ll'8'ï5'10" 1 ron coñDõ' ÚSF oÑl-V Gondo Unit #: 3 Floor: # Units/Buildlng: 63 Limiúed Cornmon Alea: SpecialAssessment: Unknown

Possession:

D¡ivemy: Gommon/Shered,Paved Electric: 200 Amp , Circuit Breaker(s) Gonst¡uction: Wood Frarne Exte¡ior: Clapboard Financing: Foundation: Concrete Floors: Carpet , Ceramic Tile , Lam¡nate HeatingúGool: Central Air , Hot Air , Multi Zone Garage/Park: Lot Desc: Common Acreage , Condo Development, Country Mountain View , WaterView Setting , Landscaped , ' Wooded Setting Heat Fuel: Oil Occ. Restrictions: Roads: Association , Private Roof: Shingledsphalt Serrer: Community Water: Community Suitable Land Use: Fee lncludes: Landscaping , Plowing Water Heater: Elec{ric Disability: lst Floor 3/4 Bathrm , Access. Common Use Areas , Bu¡ld¡ng Certs: Access. Laundry No Steps , Access. Parking , Bathrm w/stepin Shower Negotiable: Docs Available: Association Docs, Deed , Property Disclosure Excl Sale: -'X Rate: $7.70 Assmt: A$srntYn 2009 Ì¡ Glass: Unadjusted Taxes: TaxReduct: No crderly: Veteran: Other:

2/1/2011

KILN000032 r4Ëç u ur ru

ìCovenant: Yes Source SqFt: Muni CounÇ: Canoll Recorded Deed: WananÇ Book/Pg: 274710323 PlanlSurvey: tlaCBlck/Lot: 2831 I 0141015 PrcpeÉy lD: SPAN#(VT):- tÞvel/Subdiv:Jonathan's Land¡ng const Status: Ex¡sting Home Energy Rating lndex: District Moultonborcugh High Sch: Moultonborough Academy JrJtid Sch: Moultonborough Academy Elem Sch: Moultonborough Central School Gable: Electric Co: pl Co: Phone Co: Resort: No meshareúFract Ownshp: No t Weekg: Timeeharc %: DOM: 132 PREPARED BY I William Richads Email : [email protected] Coldu,ell Banker RB/Center Ha¡öor Otr Ph#: (603) 2534345 PO Box 16l Agt Plr#: (603) 2534345 ext. 125 Genter Harbor, NH 03226 CellPh#: 0 - Lisbn Ellen Watts of Lamgey & LaÍÞrey Reattors Fax Ph#: (603) 253€150 www. nemoves. com/bill.¡icñads. home wìrw.nemoves.@m Subjþrf to enors, omissíons, pnror sale, c-hange or wiúdlawal without notiræ. The agency rcËrenced may or may not be the listing agency for this property. Copyright 2009 Norülem Ñew England Real Estate Network, lnc. O2l01t2O111l:25 AM Printed By: Vvllliam RidlÍ¡rds

2lU20lt

KILN000033 r4Ës , ur rv

1O Lands End Lane Unit# Condo L $679,000 4lJ17657 Active Zon¡ng: sft Rooms: I Year Bu¡¡tr 1988 Bedroorns: 4 Golor: yellow Toúal Batfis: 4 Taxes: $ 3,698.31 Full: 2 Taxes TBD: No 3/¡t Baths: 2 Tax Year: 2010 ll2 Baths: 0 tlonthly Assoc.$: $500 Garage Capacity 2 Lot Acre: .00 Garage Type: Attacfied Lot SqFt: Total F¡n SqFt: 2,U6 Gommon Land Acres: Apx Fin Above Grd: 1,8ô8 Road Frontage: No Apx Fin Below Grd: 978 Water Frontage: 420 Foot Print: Water Acc Type: Shared Private Flood Zone: No # of Storles: 2 Style: Townhouse Water Body Type: Lake Water Body Restr.: Suweyed: Yes Seasonal: No Waær aoCil lã-me: \Mnn¡æsaukee CunenULaâd Use: L¿nd Gains: Oumed L¡nd: Parcel Access ROW: ROWfor ottrer Parce!: ROWVUidtfi: ROW Length: Public Rems: Lands End at its best! Located in the center of this historic property,yet private separate unit with three fioors of living plus a studio above the garage. Fenced patio that opens up to acres of 6eautiful lawn and mountain & lake views. Gomplete with inground pool, tennis couñs,3o: deeded dócf + a b€altiful walk-in sandy beach. The home is in wonderful condition with many upgrades and great living s huge with its privete balcony gard-en e gãrage. The Lands End Co lly kept & al mansion property. This pro access and enjoy the Lakes Region, e outside is taken care of for you & ready for your enjoyment. Dirccrions: Mounonboursh Neck to Lons rsrand !h€ sates o! lands End ,4J! nii""ïiåff:rrJ:ïio5,ïprl':1f l:ao " ROOU Dt¡ts LE\'EL ROOM DIMS LEVEL FLOOR BR FB 314 112 LMng Rm 21 x13 1 ilaster BR 20x18 2 lst 'l 1 ,| Kitchen 13x10 1 2nd BR 11x10 2nd111 Dining Rm l6xl0 1 3rd BR 12x9 B 3rd Family Rm 20x 13 B 4th BR l3xl0 B ¡!ür Ofñce/¡dy sth BR Bsmt 2 1 ln¡l¡ty Rm 10x l0 B Den 'her Rm I tgx 14 2 Other Rm 3 ¡rer Rm 2 USE ONLY Gondo Name: Root, Building #: Limited Gommon Aæa: Gondo Assoc Fees:

l

Exterior Feat:

Basement: Equip./Appl.: Drivewey: Construction: Financing: Floors: Carpet , Geramic Tile , Hardwood Garage/Park: 3 Parking Spaces, Detached

Heat Fuel: Gas-LP/tsottle Occ. Restrictions: Roads: Association , Private, Paved Roof: Shingle-Asphalt Seryer: Community, Goncrete , Leach Field , Septic Waûer: Community , Drilled Well Suitable Land Use: Fee Includes: Landscaping , Recreational , Sewer, Water Water Heaûer: Electric Disability: Building Certs: Negotiable: Docs Available: Association Docs , Covenant(s) , Deed Excl Sale: Tax Rate: $7-70 Assmt: AssmtYr: Tax Class: Unadjusted Taxes: Tax Reduct: No Elderly: Veteran: O(fier: Covenant: Yes Source SqFÍ Msrd County: Carroll ?orded Deed: Wananty BooUPg: 25011 44 Plan/Survey: lvelck/Lofi 291t t 43 Property lD: SPAN#(VT):- uevel/Subdiv:Lands End ConsL Status: Existing Home Energy Rating lndex:

2/1/2011

KILN000034 reÞwuvrrv

District: High Sch: JrJilid Sch: Elem Sch: Cabþ: Electric Co: Fr¡el Go: Phone Co: Resort: TimesharrúFract Ownshp: No # Ylleeks: Timeshare %: TIOM: PREPARED BY William Richards Email : [email protected] Coldrrell Banker RBIGenbr Haröor Otr Ptt#: (603) 2534345 PO Box l6t Agú. Ph#: (603) 2534345 ext. 125

Genter Harùor, NH 03226 Gell Ph#: Q - Lister: Randall Parker of Maxfield Real Estate/|nltlbboro Fax Ph#: (603) 253€150 www.nemoves.com/bill.ricñards. home www.nemoves.com Subir{- to eÍdrs, omiss¡ons, prior sale, change or withdrarval without not¡ce. The agenry referenced may or may rloJ be q9 l¡sting agency br th¡s property. Gopyrighf2oog Northem Ñew Enghnd Real Estate Network, lnc. 0201/2011 11:25 AM Printed By: Wlliam Ricùards

217l20tl

KILN000035 Gondo L $699,900 2758513 Glosed c$65O,OOO Zon¡ng: Resident¡al Rooms: I Year Built: 1984 Bedrcorns: 3 Golor: Gray Total Baths: 3 Taxes: $ 5,705.17 Full: 1 TaxesTBD: No 3I¡l Baths: 2 TaxYear: 2009 lr2 Baths: 0 Monthly Assoc.$: $500 Garage Capacity 1 Lot Acre: 36.00 Garage Type: Attacñed Lot SqFt: 1,568,160 Total Fin SqFt: 2,805 Common Land Acrcs: Apx Fin Above Grd: 1,905 Road Frontage: Apx Fin Below Grd: 900 Water Frontage: 1,000 Foot Print: Water Acc Type: Shared Prívate Flood Zone: No # of Stories: 2 Style: Contemporary, Cottage/CamP Water Body Type: Lake Water Body Restr.: Surveyed: Yes Seasonal: No Water Body Name: \Mnnipesaukee GurrenUl-and Use: Land Gains: Owned tend: Parcel Access ROW: ROWfor other Parcel: ROWtVidtfi: ROW Lengttt: \Mnqwald Public Rems: Moultonboro, NH. Lovely single 3 bedroom unit with 3 finished floors is available at the prestigious lake front community, _ Harbor. Amenities include boãt dock, tennis courts, historic boathouse and a laqe natural Lake ìMnnipesaukee sand beadt. Dock 43 - tÞeded, Dock 47 - Additional. D¡rections: Moultonboro Neck Road to right on Kona Farm Road to right into Windward Haôor. Left at fork to #23. , APPBOXIITATE-Boqil otu=!g|_OÑs_ ROOH DIMS LEVEL ROOM DIMS LB/EL FLOOR BR FB 314 1¡i Living Rrn 16 x 13 1 f,laster BR 17 x12 1 lst 1 'l 1 0 Kitchen 9x10 1 2ndBR 11x12 2 2nd 2 O 0 0 Dining Rm 13 x I I 3rd BR 13.4x12.4 2 3rd 0 0 0 0 Famif Rrn 20.6 x 12.8 B ¡lth BR 4th Orffice/Study sth BR Bsmt 0 0 I 0 Utility Rm flen Other Rm I 13.6 x 12 2 Other Rm 3 OtherRm 2 ... FOR GONDO USE ONLY Condo Name: Condo Unit#: 23 Floor: -.¡ilding #: # UnitslBuilding: I Limited Go¡nmon Arca: tndoAssocFees: S460 Special Assessment: No FEATU RES Assoc Amenities: Possess¡on: lr¡teriorFeaL: lstFloorLaundry,'lstFloorMasterBR, Cable, Cable lntemet, Cathedral Ceilings, Ceiling Fan, DiningArea, FireplacaWood, Hearth , Loft , Master BR with BA , Playroom , Skylight , Sprinkler System E¡

2/t/2011

KILN000036 STATE OF NEV/ HAMPSHIRE

CARROLL, SS SUPERIOR COURT

KILNWOOD ON KANASAîKA CONDOMINIUM UNIT ASSOCIATION, INC. P.O. Box 380 Center Harbor, NH 322ó

V.

PERRY SMITH, P.O. Box 2gl,}llelvin Village, NH 03850' ANDY & JILL BELLIVEAU, 4 West St., Georgetown, MA 01833-1323, and ROB & CANDY BAKER, z2Mill St., S. Hamilton, MA 01982

The Respondents, Rob Baker, Candy Baker, Andy Belliveau and Jill Belliveau, by their

undersigned attorneys, Mclane, Graf, Raulerson and Middleton, Professional Association,

hereby answer the Petition and state as follows:

FACTS

1. Petitioner was established as a New Hampshire voluntary corporation onJuly 29,

1985 to provide for the management of a recreational development in Moultonboro, New

Hampshire. This recreational development is known as Kilnwood on Kanasatka.

RESPONSE: They admit that Kilnwood on Kanasatka Condominium Owners Association, Inc.

("Kilnwood") is a voluntary corporation established on or about the date and for the purpose

cited, but they deny that the Petitioner has been lawfully authorized to commence this action and

state affirmatively that the actions of those who have purported to file this action on Kilnwood's

behalf have acted ultra vires and for their personal purposes only.

2. Respondents are owners of "units" at Kilnwood at Kanasatka who either voted

against the proposed reformation or did not vote on the matter.

RE SPON S E a They admit tho al I e gatiolls contained in P arcgr aph2:

KILN000037

'3L' Ct,e '^rJ 'r,,c\ t fi{i.-, r \\ \r tÙ 3. By document entitled "Declaration of Condominium," the Thomson Company,

Inc., purported to submit certain real estate on Lake Kanasatka in Moultonboro, Carroll County,

New Hampshire to the provisions of the Unit Ownership of Real Property Act, NH RSA 479-4,

the "Act;" this document is recorded in the Carroll County Registry of Deeds in Book 548, Page

238.

RESPONSE: They admit that the Thomson Company, Inc. recorded the Kilnwood Declaration

of Condominium as noted, state that the filed documents speak for themselves, but deny that the

Declaration was other than a valid and binding submission of the real property at issue to the

strictures of RSA 479-A.

4. This document, the "Declaration," described by metes and bounds the property

being submitted to the provisions of the Ac!29 areas as "limited common areas," and certain

common areas, and referred to aplan entitled "Kilnwood on Kanasalka, a Condominium

Development for The Thomson Company, Irc., Moultonboro, New Hampshire, November 3,

lg7o,u recorded in the Carroll County Registry of Deeds in Plan Book 24,Page 3; this plan was

revised through 24 Septemb er 1973, and this revised plan is recorded in Plan Book 31, Page 16.

These two plans shall be referred to collectively as the "Plan."

RESPONSE: They admit the allegations contained in Patagraph4'

5. Both the Declaration and the Plan refer to these "limited coÍtmon areasrr as t'Lots."

RESPONSE: They state that the referenced documents speak for themselves and state that to the extent Paragraph5 calls for conclusions of law, then no response is required and the allegations are denied.

KILN000038 6. The Declaration describes the "units" as "separately designated and legally described freehold units consisting of those portions of twenty-nine separately designated lots, tracts or parcels of land, separately designated buildings which have been constructed or may be constructed in the future, together with all fixtures and equipment therein...Each unit shall also consist of a cubicle formed by the exterior walls, floors and roof of each building or house."

Declaration Section 5 b).

RESPONSE: They admit that the portions of the Declaration cited are accurately quoted, but otherwise say that the Declaration speaks for itself.

7. The "lots" are identified as "limited common areas." Declaration Section 5 c).

Each "limited common area" is separately described by metes and bounds in Section 8 of the

Declaration.

RESPONSE: They state that the Declaration speaks for itselt admit that portions of the lots are identified as "limited common atea," but state that to the extent Paragraph 7 calls for conclusions of law no answer is required and the allegations are denied.

8. The "common areas" are identified as the roads and seven separate areas for a beach, buffer areas, wetlands areas, and picnic areas, Declaration Section 5 d), are described by metes and bounds, Declaration Section 6, and are shown on the Plan.

RESPONSE: They state that the Declaration speaks for itselt admit that there are coÍìmon areas that are labeled as noted inParagraph 8, but state that to the extent Paragraph 8 calls for conclusions of law no answer is required and the allegations are denied.

9. The Act requires that floor plans for condominium units be recorded. NH RSA

479-A: 12. To the best knowledge and belief of Petitioner, only floor plans for "units" 3,11,6,

KILN000039 l0,23,and2}havebeenrecorded. SeePlanBook25,Pages4I,42,43,44,and45,forunits3,

11, 6, 10, and23, and Plan Book 154, Pages 2 and 3 for unit 20.

RESPONSE: They are without suffrcient knowledge or information upon which to form a belief

as to accuracy of the Petitioner's statement of the recordation of "unit" floor plans and state that

Paragraphg otherwise calls for conclusions of law to which no response is required and the

allegations are denied.

10. Limited common area is defined in the Act as "those coÍìmon areas and facilities

designated in the declaration as reserved for use of certain unit or units to the exclusion of the

otherunits." RSA 479-A: l,X.

RESPONSE: Paragraph 10 calls for conclusions of law to which no answer is required and the

allegations are denied.

11. Deeds for "units" at Kilnwood convey a one twenty-ninth undivided

condominium interest in the common areas, allnght, title, and interest in fee simple to the "unit,"

and the exclusive right to use and enjoy the "limited common area" beanng the same number as

the unit. See, e.g., deed of The Thomson Company, Inc. to Lorraine E. Thomson dated 20 July

1973,recorded in Book 548,Page299. (Uní|3).

RESPONSE. Paragraph 11 calls for conclusions of law to which no answer is required and the

allegations are denied.

12. Unit owners are expressly given the right to expand a "unit" into the limited

common area with only the prior written approval of the Development Committee. Declaration

Section 20.

RESPONSE: Paragraph 12 calls for conclusions of law to which no answer is required and the allegations are denied

KILN000040 13. The Declaration also provided that it could be amended solely by the "grantor or seller." Declaration Section 10 kk.

RESPONSE. Paragraph 13 calls for conclusions of law to which no answer is required so that those allegations are denied.

STATEMENT OF AFFIRMATIVE DEFENSES

First Affrrmative D efens e

"Petitioner" has failed to state a claim upon which relief can be granted.

Second Affirmative Defense

"Petitioner" is estopped from any recovery because of their own acts or omissions and unclean hands.

Third Aff,rrmative D efens e

The "Petitioner" has not been lawfully authorized this action to be filed on its behalf.

Fourth Affirmative Defens e

"Petitioner's" claims and causes of action are barred in whole or in part by the doctrines of estoppel,laches, release, and/or waiver.

Fifth Affirmative D efens e

The statute of frauds bars "Petitioner's" claims and causes of action in whole or in part.

Sixth Affirmative Defense

"Petitioner's" claims and causes of action are barred in whole or in part by applicable statutes of limitations.

S eventh Affi rmative D efens e

"Petitioner's" claims and causes of action are barred by the doctrine of res judicata.

KILN000041 Ei ght Affi rmative D efens e

"Petitioner's" claims and causes of action are barred by the doctrine of collateral estoppel.

Ninth Affirmative Defense

"Petitioner" has not named necessary parties, including all those impacted by the requested decision.

Tenth Affirmative Defense

Respondents give notice that they intend to rely upon such other and further defenses as may become available or apparent during discovery proceedings in this case and hereby reserve the right to assert any such defenses.

COUNTERCLAIM

1. Lake Kanasatka is a375 acre lake originally called Red Hill Pond that lies

adjacent to Route 25 in Moultonborough. A dam at the Route 25 end of the lake controls the

water level. Water that flows over the dam follows a narrow stream into Lake'Winnipesaukee.

The lake is 2 miles long, .3 miles wide in most places and has a mean depth of 20 feet.

2. ln 1973, Ted Hilton and others associated with the Lake Kanasatka Watershed

Association sued the developer of Kilnwood on Kanasatka in order to limit the proposed

lakefront development. The case was filed in Carroll County, Equity No. 5068. A true and

accurate copy of the stipulated Order is attached hereto as Exhibit A'

3. In the stipulation, Exhibit A, that was executed and filed with the Court on or

about March 20,1973,the parties agreed that the development would be limited to not more

than29-single family dwelling units. They also agree that the developer would redesign his

dock as approved by the Governor and Couneil so that the common dock would consist of only

KILN000042 three (3), thirty (30) foot finger piers rather than the approved five (5), thirty five (35) foot

finger piers protruding from the dock facility.

4. The developer also agreed to limit the use of the dock facility to use by sixteen

(16) motor boats, and further agreed that no moorings would be placed off his property except to be used by unpowered watercraft.

5. The parties agreed that the stipulation would be binding on the developer's heirs, successors and assigns.

6. The above referenced components of the stipulation were incorporated into the declaration of condominium.

7. The relevant Declaration of Condominium was prepared and filed around the

28th of July 1973 by THE THOMPSON COMPANY, fNC.

8. The declaration specifies that the purpose of the filing is to submit the land and improvements to the provisions of RSA Chapter 479 - A, the Condominium Act.

9. Paragraph 36 of the Declaration provides that:

The declaration may be amended at any time by a unanimous agteement of the o\ryners of all the condominium parcels and the owners and holders of all mortgages and liens as evidenced by an instrument executed by each owner and lienor, and recorded in the public recordf ]of Carroll County, New Hampshire. As to all matters except those adjudicating the ownership interests in common areas, common elements or facilities, and common surplus, the assessment shares of Unit Owners, this declaration may be amended by a vote of two thirds of the owners of all units at any regular or special meeting of the members of the Association called for the purpose of considering the proposed amendments, or by proxy; such amendments shall be evidenced by a certificate of this the Association recorded in the Registry of Deeds of Carroll County, New Hampshire.

10. Given the fact that the Declaration was intended to meet the terms of the

Stipulation entered into by the Developer shortly before recording the condominium's organizingdocuments, this paragraph should be read to require unanimous agreement by the

KILN000043 owners as a prerequisite to any change (adjudication) to the rules governing the coÍlmon areas,

coÍtmon elements or facilities, including any change to the rules governing the installation of docks, the enlargement of docks and the use by motor boats of the docks and any moorings.

1 1. Over the past several years, members of the Association who view the restrictions against the development of the water front and use of the lake by motorboats as unnecessarily restrictive have begun to ignore/question the enforceability of those restrictions.

12. For example, at the 2007 Annual Business Meeting, held on May 27,2007 ,Ihere is a suggestion by one of the unit owners that the Association should aulhotized several of the owners to install their own temporary docks to alleviate crowding at the common dock.

Another of the owners moved that the Association approached an attomey about seeking to vacate the court order referenced above.

13. Likewise, at the July 12,2008 meeting of the Lake Kanasatka Watershed

Association, representatives from the Condominium Association appeared and urged the

Watershed Association to allow the homeowners to enlarge their dock facilities in violation of the standing court Order. The'Watershed Association urged the homeowners to withdraw their request lest the'W'atershed Association begin more vigorous enforcement of the Court Order.

14. At the 2009 Annual Business Meeting, held on }r/:ay 24,2009, the homeowners' association voted to change the restrictions in the condominium documents without the unanimous consent of the unit owners. This vote, and the resulting change, were apparently based in part on an unidentified attorney's representation that because the court Order was not separately filed with the Registry of Deeds the restrictions contained therein could be changed by a2l3 vote of the Association.

KILN000044 15. The leadership of the Association is attempting to "reform" the condominium

association out ofexistence and has acted in disregard forthe referenced court order and

declaration because it would be to some or all of their personal benefit to be able to use the

property unencumbered from the restrictions against the development of the waterfront and use

of motorboats that would otherwise be circumscribed.

1ó. The Respondents/Counterclaim Petitioners are entitled to have the Association

pay their attorneys' fees that result from their enforcement of the form of ownership and

restrictive terms in the declaration.

WHEREFORE, the Respondents respectfully pray that the Court:

A. Dismiss the Petition with prejudice;

B. Declare that Kilnwood on Kanasatka Condominium Unit Association, Inc. is a

duly constituted condominium association and its land held subject to RSA 479-A;

C. Declare each and every putported amendment of the Kilnwood condominium documents purporting to allow conduct in derogation of the consent decree referenced as

Exhibit A to be null and void;

D. Award Respondents/Counterclaim Petitioners their costs and attorneys' fees in

prosecuting and/or defending this action; and

E. Grant such other and fuither relief as the Court deems just, equitable and

proper.

KILN000045 Respectfully submitted,

ROB BAKER, CANDY BAKER, ANDY BELLIVEAU ANd JILL BELLIVEAU

By their Attorneys,

MoLANE, GRAF, RAULERSON & MIDDLETON, PROFES SIONAL ASSOCIATION

Date: November tl . zoto gy'

Steven J. Dutton, NH I7101 900 Elm Street, P.O. Box 326 Manchester, NH 03 I 05-0326 Telephone (603) 625-6464

CERTIFICATE OF SERVICE J I hereby certify that on this 4th day of November, 2010, a copy of this Respondents' Answer and Counterclaim was forwarded via first class mail, postage prepaid, to counsel of record:

Patrick H. Wood, Esquire Patrick'Wood Law Office, PLLC 555 Main Street Laconia, NH 03246

P'0í¿ Scott H. Harris

l0 KILN000046 EXHIBIT A

KILN000047 r/ / :-!.

'.I (. f.' THE STATE OF NEI.I IIAMPSHIRE t :¡'r t)!.

CARRoLL, SS. ,SUPERIOR COURT ' þfarc h Term EquÍcy No. 5068 '1973

Ted HÍlton, er aI vs.

G. Rcn¿ld Thomson

STIPULATION

Now come Ehe partfes and sÈlpulace and agree as follows:

. The peticÍon may be marked dlsmlssed with prejudice.

2. The pecicionee and his successors and assighs agree Eo

.qedesfgn the suhdivision known as Kilnwood on,Kanasacke as . ',, ..,'' descrfbed i¡ Èr¿o deêds, one fron Lofs A. SturEevanÈ Eo.che peticionee daÈed AugusE L2, 1967, and recorded Ín che Carroll Councy Reglscet of Deeds, Book 418, Page 151, and a ¿""¿ fror Paul T. Anbroae to

C. Ronald Thomson dated January 15, L97L, and recorded tn che

Carroll Councy RegisÈer of Deeds, Book 479, P,age L42, so thac chere' shell noË be Bore chan 29 slngle farntly dwelllng *t.:.:., 3. The petlCÍonee shall redeslgn hls dock gysÈen as approved

by the Governor and CouncÍl so ttut Chere shall only be three

30-fooC fÍnger pÍers rathet Chan Che approved fíve 35-fooc finger {,n- piers protrudlngnthe exfscÍng dock faêllfEy 4. The pecicionee agrees co llmfc che use of the docklng

KILN000048 -2-

facilicy referred Eo in paragraph 3 above Co 16 moEor boaES, Ðd

agfees furCher Èhac no moorÍngs shall be placed off hls ProPerÈy

except f or unpoerered waEer craf t. 5. The pecirionee shall noE permiÈ the launching of moEor boats from his propercy. 6. The pecitíonee shall not, fill any wetlands on.LoEs 6 and

l0 as shovrn on plao entÍcled Kllnwood on KanesaEka recorded ln CarroII Councy of Regfscer of Deeds, Plan Book 19, Page 24. 7. The perltlonee shall noË Éfll any shore line appurcenanE co hÍs premises. 8. The petitionee agrees co give advence nocÍce Eo the peCiUioners of any and all requesls Eo Féderal', SCaCe, or local agencies for che dredglng, ffllfng, or consËruccfon of'eubsuiface

seerage syscems whÍch shatl fncfude copf.es of all plans subolEEed. IC is und,erstood and agreed that. insof", a, the plans are fn accordance wiCh any promulgated sCandards of any such agency the

peELE.ioners wi.ll not oppose any euch requesÈs Provlded Chat lC is understood and agreed thaC Che PeÈfËfonera shell have the rlghE Lo make recommendatioos Or suggesClons whenever Chere are noË objectlve sEandards appllcable Eo Èhe requeÉÈ8. NotLce to the peEÍCloners shaU be satlsfled by notlce Èo the petltÍoner, Î ¿t) T+tbidore. HÍlCon r or co Che Secretary of the Lake Kanasacka t'Iecershed Associatfon, Inc. 9. The pecltionee shall noÈ oPereÈe any conmerclal gasolfne òr marÍna facflfcy for por.Jer boats.

KILN000049 :l -3-

10. The periCionee shall not add any addicional Eracus of land Eo che property described Ín paragraph 2 above or granc any righcs Eo che use of the propercy descrÍbed ln paragraph 2 above except Eo Èhose persons who have rfght, cfEle, and fnEe¡esl Ín and co any of the 29 sÍngle family dwellfng unics as set forth in paragraph 2 aboúe, or thefr heirs, successors¡ or asslgns. It. The petittoou" shall not escablfsh or permit any beach faciLLcy or dock facfllcies on che property descrlbed in paragraph 2 above, excepc che beach faclticy as,presently construcÈed and located and che dock facflfry provlded for sbove' L2, the petltionee shall noÈ dredge along any shore llnè

aPpurcenanE to hls premises' 13. The peCitonee shall noC place more Ehan one swimrnlng raft appufÈenant to Ehe shore lfne of hls prenlses. L4. the petitionee may relocaCe surface wa¡er courses provided Ehat he shall provide thac the'weÈer courses shall enter the lake

ac Ëhe sane.. Iocation u:"."a,Presenc , . ,¡ 15. The petltfonee'sh¿Il glve a general release Èo Èhe petlt.ioners, and che petltÍoner Hflton shall gtve Èhe PeËlËlonee a

generêI re1e88e. 16. ThÍs stipulatfon shall be bfndÍng on the hefrs, successors¡ and assigns of the PetfEÍonee'

KILN000050 --t

-4-

LT,Theprovisionsofparagraphl0aboveshallnoEbe

construed Èo prohibíc peEÍcÍonee from negoclacing r¿ÍEh one

DorÍs Bacon for thp purposes of COnsErucEíng a waEer Eank Eogether wich the granEi.ng of a righr of w4y or easemenE from

said Bacon Eo Ehe peCÍt.fonee for the purposes of storÍng waEer for the community water syscem on peÈiEÍoneets land and for che purposes of maintainfng, consÈrucÈÍng, and repairlng saÍd

easefnenÈs io consideraEfon fof whlch sald Bacon shalL reÊelve from che pecitionee all Che beneflËs and prLvlleges granced to che 29 single faml]y dwellÍng units referred Èo in paragxa.ph 2

above, Ehe sa¡ne benefits a¡rd prlvileges to lngre Eo Che land

owned by Ehe ,"f¿ n""on as shorùn on said plan referred Co i¡

paragraph 6 above Daced chis 20ch day of Ìfiarch, L973,

Pe cltionee

KILN000051 THE STATE OF NEW HAMPSHIRE

CARROLL, SS.

No.212-2010-CV-00191

Kilnwood on Kanasatka Condominium Unit Association, Inc.

V.

Perry Smith, Aody and Jill Belliveau, and Rob and Candy Baker

RESPONDENTS' MOTION TO DISMISS OR IN THE ALTERNATIVE FOR SUMMARY JUDGMENT

The Respondents, Rob Baker, Candy Baker, Andy Belliveau and Jill Belliveau, by their

undersigned attorneys, Mclane, Graf, Raulerson and Middleton, Professional Association,

hereby move this Court to dismiss the Petition filed by Kilnwood on Kanasatka Condominium

Unit Association, Inc. ("Kilnwood"), or, in the alternative, grant the Respondents summary judgment on Kilnwood's claim. ln support of this motion, the Respondents state as follows:

1. This Court should dismiss Kilnwood's claim with prejudice. Kilnwood's petition to "reform" the Declaration of Condominium for Kjlnwood on Kanasatka (the "Declaration of

Condominiufl"), on its face, is merely an attempt to ignore the intent of the parties by

"reforming" the condominium association out of existence in order to avoid restrictions contained in both the Declaration of Condominium and the 1973 stipulation entered into by

Kilnwood's developer. As both the Declaration of Condominium and RSA 479-A make clear, any change to the ownership status of the units in Kilnwood requires unanimous agreement of the unit owners and mortgagees. Kilnwood does not have the consent of all of the owners or mortgagees.

2. Furthermore, the Petition fails to join all necessary parties, namely the plaintiffs in the 1973 action against Kilnwood's developer. The partiesin that action reached a stipulation

KILN000052 that was entered by the Carroll County Superior Court and incorporated into the Declaration of

Condominium. This stipulation requires that any "reformation" attempt by Kilnwood take into

account and assure enforcement of the various stipulations, so the plaintiffs in that action are

necessary parties to this case under New Hampshire law.

3. To the extent this motion is reviewed as one for summary judgment, there is no

genuine issue of material fact that Kilnwood was formed as a condominium association. There is

no dispute that the Declaration of Condominium was prepared and recorded, a condominium

plan was prepared and recorded, condominium bylaws were drafted and some floor plans were

recorded. Accordingly, it is clear that the intent of the parties was to have a condominium form

of ownership. To the extent that administrative details were left undone by particular unit

owners, namely the filing of floor plans, the remedy is not to void the framework of ownership

of the parties, but rather to have these floor plans prepared and filed. Thus, any "reformation"

here would require that the parties' intent of creating a condominium form of ownership is

frnalized, not the dissolution of the condominium form.

4. Likewise, there is no question that the 1973 stipulation and this Court's Order

entering the same now bind the Association and its membership, rendering this "reformation"

fruitless.

5. A supporting memorandum of law is filed herewith and incorporated by reference.

6. Due to the dispositive nature of this Motion, undersigned counsel did not seek the assent of the Petitioner's counsel.

WHEREFORE, for the reasons set forth above and in the accompanying memorandum, the Respondents respectfully requests that the Court:

KILN000053 A. Grant the Respondents' Motion to Dismiss;

B. In the alternative, enter summary judgment in favor of the Respondents on

the Petitioner's claims; and

C. Grant any other or fuither relief that the Court deems necessary or

appropriate.

Respectfully submitted,

ROB BAKER, CANDY BAKER, ANDY BELLIVEAU ANd JILL BELLIVEAU

By their Attorneys,

McLANE, GRAF, RAULESON & MIDDLETON, PROFESSIONAL ASSOCIATION

Date: November Q,ZO1O By:

Steven J. Dutton, NH Bar 17l0l 900 Elm Street, P.O. Box 326 Manchester, NH 03 105 -0326 Telephone (603) 625-6464

CERTIFICATP OF SERVICE

I hereby certify that on thi. 4l\¿ay of November, 2010,a copyof this Respondents' Motion To Dismiss, Or In The Alternative For Summary Judgment was forwarded via first class mail, postage prepaid, to counsel of record:

Patrick H. Wood, Esquire Patrick'Wood Law Office, PLLC 555 Main Street Laconia, NH 03246

KILN000054 L-l 'V ¿À ¿L 'u r-:l

.i r'r Ir i\ 2û rl il

THE STATE OF NEW HAMPSHIRE B 1.,

CARROLL, SS. SUPERIOR COURT

No.212-2010-CV-00191

Kilnwood on Kanasatka Condominium Unit Association, Inc.

v.

Perry Smith, Andy and Jill Belliveau, and Rob and Candy Baker

RESPONDENTS' MEMORANDUM OF LAW IN SUPPORT OF TIIEIR MOTION TO DISMISS OR IN THE ALTERNATIVE FOR SUMMARY JUDGMENT

The Respondents, Rob Baker, Candy Baker, Andy Belliveau and Jill Belliveau, by their

undersigned attomeys, Mcl.ane, Graf, Raulerson and Middleton, Professional Association,

hereby submit this memorandum of law in support of their Motion To Dismiss Or In The

Altemative For Summary Judgment. For the reasons set forth below, the Respondents

respectfully request that this Court dismiss the Petition filed by Kilnwood on Kanasatka

Condominium Unit Association, Inc. ("Kilnwood"), or, in the alternative, grant the Respondents

summary judgment on Kilnwood's claim.

I. INTRODUCTION

The Petitioner, Kilnwood, brings this action seeking to have this Court set aside the form of ownership currently enjoyed by the Respondents and other unit owners in the Kilnwood condominium development and "reform" the Declaration of Condominium for Kilnwood on

Kanasatka (the "Declaration"). Kilnwood admits that, in accordance with the provisions of RSA

479-A,the Declaration was prepared and recorded, a condominium plan was prepared and recorded, condominium bylaws were drafted and some unit o\Mners recorded floor plans.

Nevertheless, Kilnwood asserts that "reformation" of the Declaration is appropriate here because it claims that despite all of these overt acts by the parties to create a condominium form of

KILN000055 ownership, and despite the fact that Kilnwood has been a condominium since 1973, that the real

intent was to instead form a single-family residential subdivision.

Kilnwood has no basis for its request. Simply put, its "Petition for Reformation" is

merely an attempt to circumvent the restrictions contained both in the Declaration and under

New Hampshire law, and to avoid its obligations to comply with restrictions contained in the

1973 stipulation filed with the Carroll County Superior Court settling litigation against the

developer. This entire action is an effort by the leadership of Kilnwood to disregard the prior

court order and the Declaration in order to further their own limited personal interest in

expanding the development and use of the waterfront that would otherwise be restricted.

The undisputed facts show that there is no basis for "reformation" as a matter of law

because the actions of the parties evidence nothing other than intent to form the condominium

form of ownership which the unit owners have enjoyed since the development's inception. To

the extent reformation is warranted, the result is not dissolution of the condominium form, but

rather its fortification by requiring the remaining unit owners to complete the remaining

administrative details in filing floor plans with the Registry of Deeds. Furthermore, the Court

should dismiss this case due to Kilnwood's failure to join the plaintiffs in the 1973lltigation that

resulted in the stipulation because they are necessary parties under New Hampshire law.

il. UNDISPUTED MATERIAL FACTS

This case involves a dispute among unit owners of a condominium development on Lake

Kanasatka in Moultonborough, New Hampshire Petition for Reformation ("Petition"), I'll 1, 3.

As the name indicates, the Petitioner, Kilnwood on Kanasatka Condominium Unit Association,

Inc., was established on July 29,1985 to provide for the management of the condominium deyelgpment on Lekç KataSatka. Pgtitio4 at fl 1. Respondents, Pgqy Smith,Andy and Jill

KILN000056 Belliveau, and Rob and Candy Baker, are unit owners in the Kilnwood condominium

development. Id. at 2. This development was constructed by the Thomson Company, Inc. (the

"Developer"), beginning in the early 1970's. Id. atfln3,4.

A. 1973 Lawsuit, the Stipulation and its Restrictions Incorporated in the Condominium Declaration.

In 1973, Ted Hilton and others associated with the Lake Kanasatka Watershed

Association sued the Developer in order to limit the proposed lakefront development. The case

was filed in Carroll County, Equity No. 5068. The Developer entered into a stipulation to settle

that litigation (the "stipulation"). A true and accurate copy of the stipulation is attached hereto

as Exhibit A.t In the Stipulation, that was executed and filed with the Court on or about March

20,7973, the parties agreed that the development would be limited to not more than 29 single

family dwelling units. Stipulation atlf2. They also agreed that the Developer would redesign

his dock as approved by the Govemor and Council so that the common dock would consist of

only three (3), thirty (30) foot finger piers rather than the approved five (5), thirty five (35) foot

finger piers protruding from the dock facility. Id. atl3. The Developer also agreed to limit the

use of the dock facility to use by sixteen (16) motor boats, and further agreed that no moorings

would be placed off his property except to be used by unpowered watercraft. Id. at fl 4. The

parties agreed that the stipulation would be binding on the Developer's heirs, successors and

assigns. Id. atl16.

The Developer, pursuant to his obligations under the Stipulation, then incorporated these restrictions into the Declaration of Condominium, which was filed with the Carroll County

LIn support of,the material facts setforth in Respondentsl motion are two Exhibits, the Stipulation (ExhibitA) and the Declaration of Condominium (Exhibit B). These Exhibits are true and accurate copies. See Baker Aff., attached hereto as Exhibit C.

KILN000057 Registry of Deeds. Petition at fl 3. Specifically, consistent with the Stipulation, the Declaration of Condominium provides:

5-b) UNITS: Twenty nine separately designated and legally described freehold units consisting of those portions of twenty nine separately designated lots, tracts or parcels of land, lying immediately or directly under each of twenty nine separate designated lots, tracts or parcels of land, lying immediately and directly under each of twenty nine separately designated buildings which had been constructed or may be constructed in the future, together with all fixtures and equipment therein, all of the same being defìned and referred to herein as condominium units. The remainder of all the lands lying within each of the twenty nine separately designated lots, tracts or parcels of land is defined and referred to herein as Limited Common Areas.

Declaration of Condominium, 7. A true and accurate copy of the Declaration of Condominium is attached hereto as Exhibit B.

The Declaration also includes the following restrictions from the Stipulation:

10.) COVENANTS, RESTRICTIONS AND EASEMENTS FOR LIMITED COMMON AREAS AND IINITS: ojpocrs No additional individual piers or boat docks shall be constructed into Lake Kanasatka from waterfront lots. No boats shall be docked on the shore of waterfront lots.

p) PIERS The docking system shall be limited to three. [sic] (3) Thirty (30) foot finger piers protruding from the existing dock platform facility.

q) DOCKS USE The dockingfacility is restricted to use by not more than sixteen (16) motorboats.

MOORINGS No mooring shall be placed in the water for power motor craft.

No beach facility or dock facilities shall be constructed or maintained except the beach facility as presently constructed and located, and the dock facility

4 KILN000058 provided for herein, both of which are located on Common Area No. 1. No beaches shall be constructed on any other waterfront lots.

w) BOATS All powerboats shall be kept at the community docking facility.

x) LAIINCHING No motor boats shall be launched from aîy area, common areaor limited coÍrmon area within the condominium.

y) MARINA No operation of any commercial gasoline or marina facility for powerboats shall be permitted.

Id. at33-36.

Last, the Declaration of Condominium further provides:

hh) RUN V/rTH LANp These covenants and restrictions are to run with the land and shall be binding on all parties and all persons claiming under them.

iÐ couRT PROCEEpTNGS The said grantees, their heirs, administrators and assigns shall have the right to restrain through Court proceedings any infraction or threatened infraction of any of the above restrictions, and shall, at their option, have the right to recover damages through Court proceedings for any such infraction.

Id. at37.

B. The Developer's Creation of a Condominium Form of Ownership

In preparing and filing this Declaration of Condominium, the Developer intended to submit the land and improvements to the provisions of RSA Chapter 479,the New Hampshire Unit

Ownership of Real Property Act, which was the predecessor to the New Hampshire Condominium

Act, RSA 356-8. Condominium Declaration at 1. In addition to preparing and recording this

Declaration of Condominium, the Developer took additional affirmative steps to create a condominium form of ownership in accordance with RSA 479-4. For instance, the Developer also

KILN000059 prepared and recorded a plan entitled, "Kilnwood on Kanasatka, a Condominium Development for

The Thomson Company,Inc., Moultonborough, New Hampshire, November 3, 1970." Petition at fl

4. Then, upon construction of the condominium units, floor plans for units 3,6,10,1I,20 and23

were recorded with Registry of Deeds. Id. atl9. For reasons unclear to the Respondents, however,

the remaining units did not have their floor plans recorded with the Registry of Deeds. Id.

C. Legat Requirements to Modify the Condominium Form of Ownership

As set forth above, the Condominium Declaration specifies that the pu{pose of the filing

is to submit the land and improvements to the provisions of RSA 479 and create a condominium

form of ownership. ,See Condominium Declaration aL I; see alsoPetition at fl 3. The

Condominium Declaration further provides the requirements in order to remove the property

from condominium ownership:

32.) REMOVAL FROM UNIT PROPERTY ACT

The dedication of the property to the plan of unit ownership hearing shall not be revoked, or the property removed from the plan of unit ownership , or arry of the provisions herein amended unless all of the owners and mortgagees of all of the mortgages covering the units unanimously agreed to such revocation, or amendments, or removal of the property from the plan by duly recorded instruments, except as otherwise provided by Revised Statutes Annotated, Chapter 479-A,that is to say, if the property subject to the plan of unit ownership is totally or substantially damaged or destroyed, the rcpair, record instruction or disposition of the property shall be as provided by Revised Statutes Annotated, Chapter 479-A of the Laws of the State of New Hampshire.

Condominium Declaration at 48. Thus, any attempt to remove the property from the condominium form of ownership requires the unanimous approval of all unit owners. RSA 479-

A:15 requires the same.

Similarly, the Condominium Declaration sets forth the criteria under which the document itself may be amended:

36.) AMENDMENT DECLARATION

6 KILN000060 The declaration may be amended at any time by a unanimous agreement of the owners of all the condominium parcels and the owners and holders of all mortgages and liens as evidenced by an instrument executed by each owner and lienor, and recorded in the public recorded [sic] of Carroll County, New Hampshire. As to all matters except those adjudicating the ownership interests in coÍrmon areas, common elements or facilities, and common surplus, the assessment shares of Unit Owners, this declaration may be amended by a vote of two thirds of the owners of all units at any regular or special meeting of the members of the Association called for the purpose of considering the proposed amendments, or by proxy; such amendments shall be evidenced by a certificate of the Association recorded in the Registry of Deeds of Carroll County, New Hampshire.

Id. at49. Thus, the Condominium Declaration also requires unanimous agfeement by the owners

as a prerequisite to any change (adjudication) to the rules governing the common areas? coÍtmon

elements or facilities, including any change to the rules governing the installation of docks, the

enlargement of docks and the use by motor boats of the docks and any moorings.

III. STANDARD OF REYIE\ry

In ruling on a motion to dismiss, this Court must determine whether the allegations

contained in Kilnwood's Petition sufficiently establish a basis upon which relief may be granted.

Provencherv. Buzzell-Plourde Assoc.,142 N.H. 848,852-53 (1998). Petitioner's factual

allegations are assumed to be true and all reasonable inferences drawn therefrom are construed

most favorably to it. Provencal v. Vermont Mut. Insur. Co., 132N.H.742,745 (1990). Under

this standard, the Court should dismiss Kilnwood's Petition.

In the alternative, if the Court should consider this Motion as a Motion for Summary

Judgment, the Respondents are also entitled to summary judgment under New Hampshire law.

Summary judgment is appropriate to save time, effort and expense by allowing an immediate final judgment in cases where there is no genuine issue of material fact. Xerox Corp. v. Hawkes,

124 N.H. 610,624 (1984). Summary judgment should be granted when there is no genuine issue

KILN000061 of material fact and the moving party is entitled to judgment as a matter of law. D'Amour v.

Amica Mut. Insur. Co.,153 N.H. 170, 171 (2006); see Phillips v. Verax Corp.,138 N.H. 240,

243 (1994) (summary judgment must be granted when viewing the facts in a light most favorable to the non-movant, there is no genuine dispute of material fact and the movant is entitled to judgment as a matter of law); RSA 491:8-a, III. Summary judgment should be entered when, in viewing the facts and considering all pleadings, affidavits and all proper inferences drawn therefrom "in a light most favorable to the non-moving party," the court finds that there is no genuine issue of material fact in dispute. Phillips v. Verax Corp.,138 N.H' 240,243

(1994)(citations omitted); see RSA 491:8-a, III. Summary judgment is appropriatehete. High

Country Assocs. v. N.H. Ins. Co.,l39 N.H. 39, 4l (1994).

IV. ARGUMENT

This Petition is an ill-disguised attempt by some unit owners in Kilnwood, who have decided that it would be to their own personal benefit to be able to use the property unencumbered from the waterfront restrictions, to circumvent the restrictions contained in the

Stipulation. The Petitioner knows that these restrictions, consistent with the terms of the agreement entered by the Court in that case, \ryere incorporated in the Condominium Declaration.

It also is aware that both amending the Condominium Declaration (notwithstanding whether such an amendment would violate the Stipulation) and removing the property from the condominium form of ownership require unanimous consent, which it is unable to obtain. Instead, the

Petitioner seeks "reformation" arguing that somehow, despite the plain fact that a condominium form of ownership was created here, that the intent was not to form a condominium association, but instead to have single family residential subdivision. It bases this claim solely on the fact that not ¿11 ofthe unrlslad floor plans racordcd.

KILN000062 The Petitioner's claim is neither supported by the facts nor the law. Any attempt to either

amend the Condominium Declaration to remove the waterfront restriction or remove the property

from the Condominium Act requires the consent of all unit owners. In addition, this Petition is a

thinly veiled attempt to avoid the provisions of the Stipulation that was entered by the Court.

The Petitioner's failure to name the plaintiff s in that litigation warrants dismissal of this case

because those plaintiffs are necessary parties under New Hampshire law. Furthermore, the plain

fact here is that the actions of the Developer and the unit owners evidence the intent to create the

form of ownership that presently exists, namely a condominium. To the extent that the Petitioner

points out administrative details that were left undone, the proper remedy would be to complete

those tasks, not to dissolve the condominium form of ownership that the unit owners currently

have.

A. The Petitioner Has No Basis to Seek Reformation of the Condominium Declaration.

The Petition should be dismissed because the Petitioner cannot establish a basis for

reformation. Reformation is only proper when an instrument fails to express the intention which

the parties had in making a contract due to fraud or mutual mistake of fact. A.J. Cameron Sod

Farms v. Continental Ins. Co.,I42 N.H. 275, 282-83 (1997). "Reformation of an instrument for mutual mistake of fact requires that the party seeking reformation 'demonstrate by clear and

convincing evidence that (1) there was an actual agreement between the parties, (2) there was an agreement to put the agreement in writing and (3) there is a variance between the prior agreement and the writing."' Sommers v. Sommers, 143 N.H. 686,689-90 (1999) (ErotingA.J.

Cameron Sod Farms, 142 N.H. at283).

"The plaintiffs burden of proof in a reformation action is a heavy one." Sommers,743 at

689 (citation omitted). "'[T]o warrant a decree of reformation the 'mistake must be made out in

9 KILN000063 the most clear and decided manner, and to the entire satisfaction of the court; and especially must

the proofs be clear and convincing, when the mistake is denied in the answer."' Gagnon v.

Pronovost, gT N.H. 58, 60 (1954) (finding the burden was not met in action seeking reformation

of a deed alleging that a joint tenancy was intended by the parties but by mistake this intention

was not expressed in the deed) (quoting Tilton v. Tilton, g N.H. 385,392 (1838)). "In order to

support reformation, the evidence must show that the instrument is not the true expression of the

agreement. It must show that the deficiency . . . is the result of a mutual mistake, not merely the

mistake of one of the parties. It must show what the true agreement was, and that the minds of

the parties actually met thereon ." Id. at 64 (quoting Swede v. Metropolitan Life Ins. Co.,94 F.2d

r24, 125 (5th Cir. 1938)).

Petitioner here claims that the Developer "intended this development to be treated as a

single-family residential subdivision even though it was called a 'condominitm."' Petition at p.

6. In making this assertion, the Petitioner rests its argument almost solely on the fact that floor

plans were not filed for some units. This falls woefully short of demonstrating "clear and

convincing evidence" that amutual mistake of fact existed in that the Developer intended to

create a "single-family residential subdivision." The Petitioner cannot point to a shred of

evidence suggesting that there was any intent other than to create a condominium form of

ownership. The Petition here does not seek to remedy a "mistake of fact" but instead is intended

to circumvent the waterfront restrictions required by the Stipulation and the Condominium

Declaration.

. The simple fact is that this development plainly has operated as a condominium development for the more than 25 years since it was created. Indeed, every step that was taken iqfþfqlAgtþl! lgyelopment confirms this fact. The Petitioner's argument ignores the fact that a

10 KILN000064 declaration of condominium was drafted and recorded, a plan labeled as a "condominium" plan

was prepared and recorded, condominium by-laws were prepared, and indeed, some floor plans

were recorded. All of this confirms that the intent of the Developer was to do exactly what the

documents he prepared and filed with the Registry of Deeds purport to do, namely qeate a

condominium form of ownership under RSA 479-4.

The Petitioner, however, attempts to argue that despite this development having every

indicia of condominium, since there is one technical aspect partially lacking, namely floor plans

for some units, that rather than rectify the issue the solution is to throw the whole form of

ownership out. Remarkably it points to no authority supporting its position or suggestingthat

these facts support a case for such "reformation." Furthermore, to the extent that technical

aspects of the condominium statute were not fully complied with, the clear lesser alternative

which would more closely comply with the intent evidenced by the Developer, namely the

creation and filing of floor plans for the remaining units to bring the condominium development

into compliance with RSA 479-4. See Dickey v. Barnes,268 Or. 226,230-37, 5I9 P.2d 1252,

1256-57 (1974) (stating that where statutory deficiencies existed in creating a condominium form

of ownership, the proper remedy would be to "preserve the plan which all of the parties

presumably intended to create" and correct those deficiencies, not to nulliff the condominium

form of ownership which "would result in defeating the original intention of the parties and would leave them with interests in the property markedly different than those for which they bargained").

Reformation, by its very nature, would require that that whatever needs to be done in order to meet the terms of the condominium statute be done given that the Developer's stated intent in the Condominium Declaration was to create a condominium form of ownership and

l1 KILN000065 each property owner acquired deeds that express that intent. As a matter of summary judgment,

therefore, the conclusion is insuperable that the intention of the parties was to have a

condominium form of ownership so that if administrative details were left undone they will have

to be done to meet the parties' intentions, e.g., to the extent reformation is founded, the result is

not dissolution of the condominium form, but rather its fortification by way of recording the

remaining unit floor plans. The Petitioner has the burden of proof of showing by clear and

convincing evidence that this is not the case. It cannot do so. Its attempt to undermine the

condominium form of ownership that has been in place for more than a quarter century now to

further the personal interests of some members of the Association at the enoÍnous cost of the

Respondents is simply unfair and should be rejected by this Court.

B. Any Attempt to Change Ownership Requires Unanimous Consent Under RSA 479-A and the Condominium Declaration, Which Does Not Exist Here.

This Court should dismiss the Petition because the Petitioner is not permitted to make any

changes to ownership absent the unanimous consent of the unit owners per the terms of the

governing statute, RSA 479-4, and the Condominium Declaration. While the Petitioner recognizes this fact in its Petition, it claims that it should be able to do so here because obtaining unanimous consent "would be impossible or impracticable." Thus, it argues that reformation is the appropriate remedy to allow it to avoid the contractual and statutory obligation of obtaining the agreement of all unit owners.

As set forth above, reformation is not appropriate in this case. More to the point, however, both the statute and the Condominium Declaration contain a requirement for unanimous consent for a reason. SeeDeclaration at 1T32, RSA 479-A:15. In this instance, the

Petitioner is attempting to alter fundamental property rights, namely the form of ownership each unit owner bought into when the units were purchised, iñ order to avoid the restrictioñs

t2 KILN000066 contained in the Stipulation filed with the Carroll County Superior Court, a Stipulation that is

binding on all "heirs, successors and assigns." Each unit owner agreed to both the condominium

form of ownership and these restrictions upon purchase of their unit. If, anytime the required

consent of all owners could not be obtained, the requirement could simply be ignored, then there

would be no pu{pose in requiring the consent in the fìrst place.

C. The Petitioner IIas Failed to Join Necessary Parties.

Even if the Court does not apply the above authorities to dismiss the Petitioner's claim

andlor enter judgment in favor of the Respondents, the Court nonetheless should dismiss the

Petition for failing to join necessary parties. Petitioner seeks to have the Court declare that the

Declaration is null and voided and should be replaced by a new "Declaration of Covenants,

Restrictions, and Easements," thereby eliminating the restrictions from the 1973 Stipulation that

were incorporated into the Declaration. However, the restrictions in the Declaration were central

to the resolution of the dispute on the 1973 Superior Court action against the developer and the

Stipulation filed with the Court. Clearly, any judgment in this case could adversely affect the rights and interests of the parties to the Stipulation. ,See Weisbusch, New Hampshire Practice,

Civil Practice and Procedure, 2nd ed., $ 6.02; see also Sorenson v. Wilson,124 N.H. 75I,757

(19S4) (reversing and remanding the trial court's decision on the proper chain of title, concluding that the trial court could not render a judgment otr qui"ting and settling title because of "the absence of parties with a duly recorded interest in the property").

In short, the Court should dismiss the Petition. The parties to the Stipulation have a duly recorded interest in assuring that the restrictions contained in the Stipulation are properly enforced, and therefore, the Court should dismiss this case due to Petitioner's failure to join necessary parties.

13 KILN000067 V. CONCLUSION

For the foregoing reasons, the Court should dismiss, with prejudice, the Petition. If the

Court decides to convert the Respondents' Motion to Dismiss to one for Summary Judgment, there are no genuine issues of material fact to be tried in this case. The undisputed fact is that

Kilnwood was formed and was intended to be formed as a condominium association.

Accordingly, the Respondents are entitled to judgment as a matter of law.

Respectfully submitted,

ROB BAKER, CANDY BAKER, ANDY BELLIVEAU ANd JILL BELLIVEAU

By their Attorneys,

MoLANE, GRAF, RAULESON & MIDDLETON' PROFES SIONAL ASSOCIATION

Date: November L ZOTO By: 3, NH Bar 6840 Steven J. Dutton, NH Bar 17101 900 Elm Street, P.O. Box 326 Manchester, NH 03 105-0326 Telephone (603) 625 -6464

CERTIFICATE OF SERVICE rfAay I hereby certify that on tfris of November,20l0,a copy of this Memorandum of Law was forwarded via first class mail, postage prepaid, to counsel of record:

Patrick H. Wood, Esquire Patrick Wood Law Office, PLLC 555 Main Street Laconia, NH 03246

1,4 KILN000068 EXHIBIT A

KILN000069 Eyniu{ A

IJI

''l (r li THE STATE OF NEI{ HAMPSHTRE !':t ' 'Y'-)', ,SUPERIOR CARR0LL, SS. ' 'Ma¡ COURT '1.97Term Equicy No. 5068 3

Ted HÍlton, ec al vs.

G. Rcnald Thomson

ST I PU LAT I OI{

Now come Ehe partÍes and sÈfpulace and agree as follows:

I. The pericion may be marked dfsmlssed with prejudice.

2. The pecicionee and his successors and assigns agree Eo

.4edesÍgn the subdivision known as Kilnpood on,Kanasacka as . . :,,,,, ,..t'r descrfbed Ín Èwo deèds, one fron Lols A. Sturt,evanc Èo.cbe y'eticionee daced AugusE L2, Lg67t and recorded in Ehe Carroll Councy Reglscer

of Deeds, Book 418, Page 151,, and a ¿""¿ t.o. Paul T. Aobroee Èo

G. Ronald Thomson daÈed January 15, 1971, and recorded l¡ the

Csrroll Councy Register of Deeds, Book 479, P,age L42, so chac chere' shall not be Bore chan 29 slngle famlly dwelllng *4.:.:.. 3. the petÍcionee shal.l redesÍgn hls dock syaÈeE ss åpproved

by the Governor and Cor¡ncÍl so chat chere shall only be three

30-fooc finger piers raÈher chan the approved fÍve 35-fooc finger {,nn piers protrudlngnthe exlscing dock fac111ty. 4, the pecfcionee agrees co llmfc che use of the docking

KILN000070 \ -r-

facilicy referre . Eo in paragraph 3 above to 16 mogor boa¡s, Ðd agrees furCher chat no rroofings shall be placed off hts ProPerÈy

except for unpowered waEer craft. 5. The pecicionee shall noc permlc Ehe launching of rnoEor boaEs from hÍs propercy. 6. The peritionee shall noc fill any weÈIands gn.Locs 6 and l0 as shown on plan entÍtled Kllnwood on Kanegatka recorded ln CarroLL Councy of Regtscer ot Deeds, Plan Book 19, Page 24. 7. The petttfonee sh¿Il.soÈ ffLI any shore lÍne appurcenanÈ

Èo hfs premíses. 8. The peciEionee agrees co give advance noc,ice Eo the peCiCioners of any and all requests Ëo Fideral,, SCaCe, or local

agencies for Che dredging, flltlng, or consËrucELon of'subsuiface se$tage syscens which shall lncfude copfes of all plans suboiCCed. IC is understood and agreed Chat insof"r a, Ehe plans are Ln accordance wiCh any promulgaCed standards of any such agency the peeitionerg wlll not oppose any euch requesÈ3 Provlded Chat lf is understood and agreed thst che PeËltfonera shall have the rlghÈ

Eo roake recommendaËlons Or suggegtlong whenevet Chere are noÈ

objecÈlve sEandards appllcable Eo Ehe requesgs. Noclce Èo the peCitfoners shsll be satlsfted by noÈlce Èo the PeElCLoner' î ¿t) Thbadsre. Hilcon, or Eo Èhe secretary of Ëhe Lake KanasaËka wacershed Assocfation, Inc. 9, The petltionee shall noÈ oPeråEe any cornmerclel gasollne or rnarina faclliCy for power boats.

KILN000071 -3-

lo. The pecicionee shall not add any addicional cracc,s of land Co Che property described Ín paragraph 2 above or granE any

righcs Eo Che use of the properCy described fn paragraph 2 above

except Eo Chose persons who have rfght, Cfgle, and fnfe¡esE fn and

Co any of the 29 single family dwellfng units 8s set forth ln paragraph 2 aboúe, or thelr heirs, successors¡ oE Esslgns' Il. The petitronu" shalt nog es¡abllsh or Permlt any beach facíLLcy or dock facflfcies on Èhe ProPerty degcrfbed in paragraph 2 above, excepc Che beach facllÍCy as.Pref¡ently construcÈed and located and che dock facflfty provlded for above. L2, The petltionee shall noE dredge along any shore lfnè

aPpurcenanE to hls premíses. 13. The pecÍtonee shall not place more Ehan one swf-mnlng raft appurEenånt Eo the shore lfne of hls prenlses. 14. The peÈItÍonee may relocace surface waËer courses provided

EhaÈ he shall provide thaC the'waÈer courses shall enÈer the lake aE Ëhe 6ame.. location u:"."a ,Presenc , . ¡¡ 15. lhe petltfonee'shall glve a general release Eo Ehe petlEioners, and che petlËÍoner Hflton shall glve Ètæ PeËltlonee a general release. 16, This stipulation shall be blndÍng on the helrs, successors' and assigns of the PetfcÍonee.

KILN000072 I -4-

L7, The provísions of paragraph 10 above shall noc be

consÈrued Co prohfbiC peEiCionee from negoClating r¡iCh one

DorÍs Bacon for thp PurPose5 of consErucgÍng a water Eank Eogether $rÍEh the granEi.ng of a righc of w4y or easement from saíd Bacon to the peElEfonee for Ehe purposes of storÍng wacer for Ëhe com¡nuniry water sysgem on peÈl¡loneels land and for Che purposes of maÍncainfng, consÈrucÈing, and repairing said

easefrrenÈs io consideraClon for whlch safd Bacon shall reÊelve from che pecitÍonee all che beneflËs and prlvlleges granÈed Ëo rhe 29 single family dwelling unÍts referred Ëo in patagta.ph 2

above, Ë,he same benefics and privileges to lnure to che land

owned by the ,"t¿ n""on as shot{n on said plan referred Èo ù-o

paragraph 6 above Daced this 20ch day of lfiarêh, L973.

KILN000073 EXHIBIT B

KILN000074 Exni5¡¡ I

DECLARATION OF CONDOMINIUM

SUBMITTING REAL PROPERTY TO PROVISIONS OF UNIT OWNERSHIP OF REAT, PROPERTY ACT Revised Statutes Arnofated, Chapter 479'A

a This is a declaration made this 19 day of July, l9?3 by THE THOMSON COMPANY, INC., corporation duly estoblished by law and haviig a plaóe of business at Moultonboro, County of Ca¡roll and State of New Hampshire.

WITNESSETH:

WIIEREAS, THE THOMSON COMPANY, INC, is rhe owner in fee simple of a certain parcel or tract of land with certain improvements thereon erecfed as hereafter desc¡ibed and to be known as KILNWOOD ON KANASATKA; and

WHEREAS,.THE TIIOMSON COMPANY, INC.,is desirous of submitting the said.land_and improvements to the provisions of Unit Ownership of Real Property Act, Chapter 479-4, Revised Státutes Annotated, in order to create a plan of condominium ownershíp of such land and improvements.

NOW THEREFORE, the said d DECLARATION, that the provisions o s' Statutes Armotâred, shall be binding up of the said land and exécutors, adminislrato¡ PrÕporty Act, Revised provément located thereon;

Certain tracts or parcels of land looated in Moultonboro, County of Carroll and State of New Hampshire, and more particularly bounded and described as follows:

so-called; l) TRACT I; Beginning at a junction of stone walls o¡ úe wcsterly side of Red Hill Road,

Thence rururing along lhe Westerly side of said Road, via a stone wall, in the following courses: North Tlrirty-six d"grles Fõrty-seven Minutes, Forty-two Seconds West (N3ó0 47' 42" W), One Hundred Fifty' Thi v-si '420 thLre utes' Iundred Eighty-ttree and Fifty-eight Hundredths Feet (283.58) to an iron pipe in ground;

Page I

KILN000075 Thence rurning along the land of Doris L. Bacon and Lee P, Sturtevant, South Fifty'two Degrees, Zero. Minutes, Zero Seconãs West (S 520 00' 00" W), One Thousand Seven Hundreds Fifty and Six Hundreds Feet (1,750.0ó') to an iron pipe set in the ground at land now or fornrerly ofone Kelley;

Thence mnning along lhe land of saicl Kelley, South Twenty-eight Degrees, Fifty-nine Minutes, Fifty Seconds East (S 280 59' 50" E) Onc Thousand Fifty Fcet (1,050) to an iron pipe set in a sbump at the land ofF. SurnnerCoe;

Thence running along the said land of said Coe North Fifty-two Degrees Zero Minutes, Zero Seconds East N 520 00' OO';e¡, Three Hundred Forly Feet (340), nrore or less, lo an iron pipe sel in the ground on the shore of Lake Kanasatka;

satka in the (N 650 I 8', intrtes, Twe TwentY-one outh FortY-six and Fifteen s 60 05' 21" E), Ninety-one and Sixty-nine Hunrlredths Feet (91.69); South Thirty-nine Seconds West (S 740 53' 39" W), forty-six a¡d Forth-two Degrees, Thirly-seven Minutes, Trventy-o ne Sec Fourleen and Sixty-five Hundreds Feet (l one seconds wesí1N no 22' 2l- w), on d Nortb Seventy-five Degrees, Thirty-eight Hundred Sixty-eight and Ninety-four Hun shore at land ofthe said Bacon;

Thence running along tlre land of sajd Bacon North Trventy-lhree Degrees, Thirty-nine Minutes, Thirty-one Seconds West (N n1g' 31" W) One Hundred Ninety-two and Twenty- eight Hundredths Fest (192.28') to an pipe set in the ground;

Thence running along the land of said Bacon North Seventy-six Degrees, Twenty Minutes, Four Seconds Easr (N 760 20; 04" È¡, Fo.ty-on. and Forty-nine Hundredths Feet (41,49') to and iron pipe set in the ground;

Thence running along Iand of said Bacon South Sixty Degrees, Zero Minutes, Thirty-four Seconds East.(S 600 00' 34" E)bnc llundrcd Eight-eight and Ninety-tlu'ee Flundredths Feet ( 188.93) to an iron pipe set in the ground on the shore ofLake Kanasatka;

Thence rutming along the shore of Lake Kanasatka in the following courses: North Twenty-two Degrees, Eight Minutes, Twenìy-one Seconds West (N 220 08' rty-seven Hundredths Feet (S.ll');North Five Dågrees, Forty N 050 47' 39" E), Thirty- seven and Forty Hundrãdths Feet ( gÊs, Twenty-one Seconds West (N 020 07' 21" w), Sixty'nine and ncl't: rcct (69'71)tNorth Thirly-nine Degrees' Thirty-four Minutes, Thirty-nine Scconds East (N 3!) (46,?0); North Seventy-four Degrees, 'l'wenty nine Eighty-three and Seventy-nine Hundredths Feet (83 Thirt¡nine Seconds East (N 62027'39" E), Sevent Tfi irty-fi ve degrees, Forly-thre e Minutes, Twenty-onr Ninety-e ight I:lundreds Feet (17 .98')

Page 2

KILN000076 South Sevenry-two degrees Thirty-two minutes Twenty one Seconds East (S ?20 32' 21" E), Thirty and Thirty-live Hund¡edths Feet (30.35'); South Twenty-three Degrees, 'fen Minutes, Twenty'one Seconds East(S23 l0'2t"E),OneHundredFifteen,andTwenty-fourHund¡edthsFeet(115,24'); SouthSeventy- seven Degrees, Forty-four Minutes, Twenty-one Seconds East (S ??0 44' 2t " E), Thify-seven and Sixty- th¡ee Hundreds ¡eei (:Z,O¡'); and North Eighty-nine Degrees, Ten Minutes and Nine Seconds East (N 89 l0' 09" E), Twenty-one and forty Hundreds Feet (21.40') to á red oak tree at the corner of land owned now or formerly by one Hotchkiss;

Thence running along fhe land of said Hotchkiss by wire fence and stone wall North Fifty-two Dogre es,, Zcto%inttes,2ero Slconds Easr (N 520 00' 00" E), Nine Hundred Seventy and Eighty-seven Hundredths Feet (970,87') to the point of beginning,

Meaning and intcnding to describe thc same premises desoribed in deed of G. Ronald Thomson to The Thomson Conrpany, Inc. by deed dated the 28't' day of lune, 191 3, anð recorded in the Carrol I County Registry of Deeds at Book 548,Pa9e226.

Further rneaning and intending to describe the same premises described in deed of G. Ronald Thomson and Lorra.ine E. Thomson to G. Ronald Thonrson by deeã dated February 16,1973, and recorded in the Carroll County Registry ofDceds at Book 535, Page 65.

See also deed of Malcolm Sturtevant to G Ronald Thomson and Lonaine E. Thomson by deed dated September 3, l97l and recorded in the Carroll County Registry ofDeeds at Book 495, Page 10.

For further refe¡ence see revísed plan entilled "Kiluwood on Kanasatka, a Condominium Development for_ 'Ihe 'lhomson Cornpany, Inc. , Mìultonboro, New Harnpshire, November 3,79'10", recorded in the Caroll County Registry of Deeds at Plan Book 24,Page 3.

2) TRAÇT II: Begínning at the Nofiheast corner of land now or fonnerly owned by L. A Slurtevant, and running Sãuthwest on said land to a stake and stump at the corne¡ oflands now or fornre¡ly ownedby said Shlrtevant, Kelley aod Bstchelder;

Thence running Ten (10) Rod.s Southeasl to three small adjacent islands;

Thence Northeast on shore of said islands to end ofNortheast ¡sland;

Thence Northwest to starfing point.

Meaning and intending to describe the sarno premises described in deed of G, Ronald Tholnson to The Thomson Çompany, Inc by deed dated the 25 day of June, 1973, and recorded in the Carroll County Registry of Deeds at Book 548, page 224.

Further meaning and intending to desoribe the same premises described in deed of Paul T. Ambrose to G. Ronald Thomsoì by deed dated December 5,197Q and recorded in the Canoll County Registry of Dceds at Book479,Page 142.

For Íilrther refþrence see revised plan entitled "Kilnwood on Kanasatka, a Condominium Development for The Thornson Cornpany, Inc., Moultonboro, New llanrpshire, November 3, 1970", recorded in the Canoll County Registry of Deeds atBook24, Page 3.

Page 3

KILN000077 3) TRAÇT III: Being a certain right-of-way bounded as follows:

Beginning at an iron pin at the Northrvest corner of land now or formerly of Do¡is S. Bacon, at the Southerly side of a road teading from Bean Road to l{ed Hill Road, so-called, and at he Northeaslerly comer of land nol or formerly of Arthur Justice;

(S Thence running on a coufse of South Twenty-seven Seventeen Seconds West zl\ lo' n'w¡ a distance of one Hundred seventy- undredths Feet (177.94') and aiong the Soutireasterly boundary line ofland ofsàid csterly boundaryline ofland of said Doris S, Bacon to and iron pin;

Thence continuing to tum along said line ofsaid Bacon land on a course ofsouth Twenty-eight Degrees' Forty-four Minutes, l'orty-threã Seconds East (S 28 44' 43" E) a distance of Five Huudred Thirty and Forty-three Hundredths feet (530.43') to a point at the Southwesterly comer of land of said Doris S. Bacon and ihe Northwestcrly corner of land of Thc Thomson Company, Ino,, said point being One Thousand Seven Hundred Ten and Nínety-six Hund¡edths Feet (1,7i0,96') on a course of North Fifty-three Degrees' Thirty-seven Mirrules, Forty-five Seconds East (N fio 37' 45" E) for Red Hill Road, so-called;

Thence hrming and running on a course of North Fifty-three Degrees, Thirty-seven Minutes, Forty-five Seconds East (N 53 3'1' 45; E) a distance of Fifty and Forty-four Hundredths Feet (50.44') to a point;

Page 4

KILN000078 Thence fuming and running on a cotus€ of North twenty-eight Degrees, Forty-four Minutes, Forty-three Seconds West (N 280 44' 4i3"W) a distance of Five Hundred Twenty-one and Seventy-two Hundredths Feet (521 .72') to a poinr;

Thence tuming and running in the same Northwesterly ditection on a course of Norüt Twenty-seven Degrees, For-ty Minutes, Seventeen Seconds tJVest (N 270 40' 17" TV) a distance of One Hundred Eight¡ nino and Fifty Hundredths Feet (189.50') to a poirrt;

Thence hrning and running on a course of approxirnately parallel with said Road which runs for Bean Road to Red Hill Road on a cowse of South Fifty Degrees, Twenty-nine Minutes. Thirty-tkee Seconds West (S 500 29' 33' W) a distance of Fifty-one and Eight Hundredths Feet (51.08') to a point of beginning.

The above described right-of-way to be shared in common with all others having like right as shown on a '?artìal Plan ofland of Doris S. Bacon, dated Decenber 24, I 970, by Lakes Region Survey Service, of Moullonboro, New Harnpshire", recorded in the Carroll County Registry of Deeds at Plan book 495, page 0

Meaning hereby to describe a right-of-way running along the Southwesterly edge of land of said Bacon from the Road leading fiom Bean Road to Rsd Hill Road over and across said land of said Doris S. Bacon as above described to land oftbe Thomson Company, Inc.

Meaning and íntending to describe the same premises as described in deed of G, Ronald Thomson to The Thomson Company, Inc, by deed dated the 26 day ofJune 25,1913, and reco¡ded in the Car¡oll County Registry ofDeeds at Book 548,Page226.

Further meaning and inlending to describe the same premises as described in deed of G, Ronald Thomson and Lorraine E. Thomson to'G. Ronald Thomson by Deed dated February 16, 1973 and recorded in the Carroll County Regístry of Deeds at Book 535,Page7l.

Further meaning and intending to describo a right-of-r,ray with rospect to a certaín parcel of land morc particularly described in deed of Malcolm E. Sturtevant to Hazen K, Sturtevanl and Doris L, Sturtevant by deed daled lr.f.ay 21 ,1937, and recorded in the Carroll County Registry of Deeds at Book 207 ,Page 523, CNotel The seid Doris L, Sturtevanl now the said Doris S. Bacon,) The said Hazen K, Sturtevant deceased on January 15,1952.

4) Tract IV: Being a cenain right-oÊway or €asernent, bounded as follows:

Beginning at the center of a bronze tablet in the stone wall on the Northeasterly side of the Red Hitl Road tight-of-way at other land of Doris S. Baoon; said point being the lVesterly comerof lhe herein describcd parcel;

Page 5

KILN000079 Thence North fifty-four dsgrees Nine Minutes Twenty-threo Seponds East (N 540 0g' 23"8) Four l{undred and No Hundredths Feet (400.00') along said Grantor's other land !o another bronze tablet in a ledge;

ThencesouthThirty-oneDegrees,FortyMinutes,Forty-twoSecondsEast(S31040'42"8)FtftyandNo Hundredrlm Feet (50.00') along said other land of the said Doris S. Bacon fo an iron pin; said pin is located about One Hundred Eighty-one Feet (181 ') on the sarue last rnentioned beæing from a stone wall and barbed wire fence;

Thence South fifþ-four degreeq Nine Minutes, Twonty-three Seconds West (S 540 09' 23" W) Four Hurdred and No Hundredths Feet (400.00') along said other land of said Do¡is S. Bacon to an iron Pin on the Northeasterly side of said Red Hill Road right-of-wa¡4 said point being located about One Hundred Eight-eight Feet (188') from an ironpipe at an intersection of stone walls located South Thify-one Degrees, Forty Minutes, Forty-two Seconds East (S 3 10 40' 42" E)i

Thence North Thirty-one Degrees, forty Minutes, forty -two Seconds West (N 310 40' 42" W) Fifly and No Hundredihs Feet (50,00') along a stone wall being the Red Hill Road right-oÈway to the point of begiuning; containing Nineteen Thousand Nine Hundred Forty-seveu squarefeet (19,947')'

ÌaeÊ 6

KILN000080 5 - a) ESI'ATES: Said Grantor, in order to establish a plan of condominiunr ownership for the above described property and irnprovements, hereby covenants afld agrees thal it hereby divides said property into the lollowing separate estates:

b) UNIIS: Tweng niné separately designated and legatly described fieehold units consistíng of those portions oFtwenty nine separately designated lots, tracts or parcels of lancl, lying immediately and directly under each oftwcnty nine separately designated lots, lracts or parcels ofland, lying immediately and directly under each oftwenty nine separately desigfiated buildings vrhich have beefl constructed or may be constructed in the'future, togãther wìth all fixtures and equipment there in, all of the same being defined and referred to herein a.s condo¡ninium unìts. The remaifld€r of other land lying withh each of the twenty-nine separately designated lots, tracts of parcels ofland is defined ârrd refeffed to herein as Limited Comrnon A¡eas.

Each unit shall also consisl ofa cubicle formed by the exterior walls, floors and roofofeach buitding or house.

Ownership of the unit íncludes ownership of the building or house, Bll the mâterials covering the exterior ol the building and all the property of every natu¡e lying within the area formed by tho exterior walls and roof of the building and also included as a part of the unit is the foundation, support columns, garage and the plumbiog associated with the lvatef and sewage disposal systems and the wiring or piping and any and all 'each other utilities from the edge of unit; and the same items as stated aforesaid that a¡e located between the lot line and the unit and exist for the sole benef¡t of the unit owner. Said items lhat beneftt more than one owner shall be owned by said owners in equal shares.

Any pernranent additions to the building and any improvcments or fixtu!'es above or below the surface of the ground of any limited commou area, solely benefiting that limired corrunon area as penrtitted by the Decla¡ation shall becomc a part of the unit,

c) LJMITED COMMON AREAS: For the purposes olthis Declaration lirnited comrìron areas shall be described as thc land around which an individual unit is sìtuatc, that is the land immediately adjacent to said unit which land is shown as enconpasses within lot lines sunounding each individual numbe¡ed lot, tract o¡ parcel of land as show¡r orr Revised Plan entitlecl "Kil¡wood ort Kanasatka, A Condominium Development for The Thomson Cornpany, Inc., Moultonboro, New Hompshire, dated November 3, i970' Lakes Region Survev Service, Inc,", recorded in the Canoll County Registry of Decds at Plan Book 24, Page 3. Each lintited common area is reserved fòr the exclusive use ol the unit to whioh it appertains subject to eâsonlelrts or rights-of-way as hereinaltcr described.

d) COMMON AREAS: One Freehold estate consjsting of an undivided interest in that poñion of the promises specifioally desoribed above as shown on the aforesaid Revised Plan entitled "Kilnwood on Kanasatka, A Condominiurn Developrnent for The Thomson Company, Inc., Moultonboro, New Hampshire, daterl November 3, l9?0, Lakes Region Survey Service, Inc." recorded in the Canoll County Registry of Deeds at Plan Book 2 4, I,age 3, ¡eferred to he¡ein as the "Common Areas" which definition means all of the premises not a part Õf a unif or a limjted conmon area and shall include the common use of íoads, walkways,-lawns, payement parking area, community beaah, picnio areas. boating facilities, wood€d ar€as, natural areas and pond areas.

Page 7

KILN000081 e) COMMON ELEMENTS: For the purposes of this Declaration conmoo elements shall be described as all t*pr"".r."tr, rttlfty 1..s, piping, abìve the surface and below the surface of the ground, locatcd upon all of the common area¡l 0s shown on Revised Plan of "Kilnwood Kanasatka, A Condo¡ninium Development for The Thomson Company, Inc., Moultonboro, New llampshi¡e, dated November 3,1970' Lakes Region Survey Sewice, Inc.", iecorded in the Canoll County Registry of Deeds at Plan Book 24, Page 3. Together with all improvements not installed or constructed by owners of condominium units and including alì improvements, utility lines, piping, and the like installed or located upon the rights-of'way or eåsemcnts hereinafter described.

6,) P-E$çFJPJLO.N-QLCQMM.O.N.AßEAS:

a) COMMON AREA NO. I; Beginning at an iron pin located on the Southwesterly cornçr of Kilnwood Landíng, so-called, and the Southeasterly corner ofLot No. 2;

Thence running on a course of South Seventy Degrees, Zero Minutes, Zero Seconds West (S 700 00'00" W) along the Sìutherly edge of Lot No. 2 a distance of One Flundred Thirfy-tlree and Eighty-frve Hund¡edths Feet (133.8S') to an iron pin located at the Southwesterly comer of Lot No. 2 and at land now or formerly of one Batchelder;

Thencc turning and n alon nd a distance of Ninety-six and S 77') to of Lake Kanasatka at the co the so Area No' I' herein desoribed;

Thence followjng t og in a Northea Southerly, Southea terly, Northerly Southwesterly and on the EaslerlY so-calle d, Two Hund¡ed Twenty-four and Nineteen Hundredths Feet (224.19') Northerly of the Southerly end of Kilnwood Landíng;

Thcnce tuming and running along the Easterly edge of Kilnwood Landíng, so-called, on a courso of South Twenty-eight begrees, Forty-six Minutes, Fifly-sãven Seconds East (S 280 46' 57' E) a distance of One Hundred Twenty Four and Fifty-four Hundredths Feet to a poiht;

Thence continuing along the Easterly edge of said Kilnwood Landing in a Southeasterly and Southerly dire ction on a r¿dlus of 3i* Hundted Fidy and Ten Hundredths Feet (650,10') a distaoc€ of Ninety-nine and Sixty-frvc Hundrcdths Feet (99.ó5') to the Southcasterly oorner of said Kilnwood landing;

Thence turning and running in a Northwesterly direction across the wídth of said Kilnwood Landing to the point ofbeginning.

AIso including tluee (3) small adjacent islands that are located Southerly, Southwestedy, and Southeasterly of the tip of the peninsula of Common A¡ea No. l, and all the right, title and interest the Crantor may have to any land now lying under the water of Lake Kanasatka as described in deed of Paul T' Ambrose to G. Ronaid Thomson, dated December 5,lg7} and rccorded in tlre Canoll County Registry of Deeds at Book 479,Page 142.

Page I

KILN000082 b) COMMON AREA NO. 2: Beginning at an iron pin located on the Souiherly edge of Brick Kiln Road at the Northwesterly cornerof LotNo. 12;

Thence running on a cou¡se of South Forty Degrees Two Minutes, Ten Seconds East (S 400 02' 10" E) a distauce of Oné Hundred Twenty-six Feel (126'), more or less, to an iron pin located at the edge of Lake Kanasatka at the Southwesterly corner of Lot No. 12.

Thence turning to tlre right following the shore of Lake Kanasatka in a Northwcsterly, Southerly, .. Soulhwesterlylnd Wesierty direction to an iron pin located on the Easterly edge of Kilnrvood Landing and the edge ofLake Kanasarka;

Thence turning to the right along the Easterly edge of Kilnwood I-anding and running in a Nofherly direction to a poinf marking the beginníng of a radius;

Thence continuing Northerly and Northwestedy on said radius of Two Hundred Feet (200') a distance of Foly and Seven HundredÛs Feet (40.07) to a poinÈ;

Thence continuing Northerly and Nofheastcrly on a Fifty (50) Foot radius a distance of Sixty-Four and Thirty-seven Hundredths Feet (64.37') to the point of beginning.

c) COMMON AREA NO, 3; Begínning at an jron pin on the Westerly edgo of Kilnwood Landing at the Northeasterly corncr of Lol No. 6;

Thence running on a course of North Eighty-six Deglees, Fifty Minutes, Thirty-eight Seconds West (N 860 50' 38" W) o distance of Tv¿o Hundred Twenty-three and Seventeen Hundredths Feet(223'17) along the Northerly edge of Lot No. 6 to an iron pin located on the Easterly edge of land now or formerly of one Batcheldel at the Nortbwesterly corner of Lot No, 6;

Thence turning and running on a coursg of North Twenty-seven Degrees, Twenty-two N{inutes Five Seconds WestlX 21o 22'05' Vy') a distance ofForty-one and Seventy-one Hundredths Fect to an iron pin located on the Westerly or Southerly edge of Kilnwood Landing;

Thence tuming and running along said Westerly or Southerþ edge of Kil{rwood Landing on u ooor.. of South Eighty-six degrees, Fifry ì\iinutes, Thirty-eight Seconds East (S 860 50' 38' E) a distance of One Hu¡d¡ed Sixty-seven and Fifty-seven Hundredths Feet (167.57') to a point;

Thence tuming and running along the same edge of said Road in an Eastedy and Southeasterly direction on a radius of Onã Hundred and One Hundredths Feet (100.01) a distance of Eighty-seven and Fifty-five Hundred¿hs Feet (87.55') to the point of beginning. The above desc¡ibed premises containing Seven Thousand Five Hundred Eighty-eight square feet (7,588), more or less, d) COMMON AREA NO. 4: Begínning at an iron pin located on the Northerly edge of tsrick Kiin Road, so' called, at the Southwesterly corner of Lot No. 16;

Thence running along the Westerly edge of L¡t No. I 6 on a course of No¡th Twenty-four Degrees, Fifty' seven Minutes, Forty-six Seconds rùy'est (N 240 5'7'46" W) a distance of Two Hundred Seven and Two Hundredths Feet (207.02') to an iron pin;

Paee 9

KILN000083 ! I ?

Thence runníng along thc cdgc of Lot No, I6 on a course of North Six Degrees Zero Minute, 2lç¡o Seconds East (N 060 00'00" E) a distance ofThirty Four and No Hundredths Feet (34.00) to a point at the Southrvesterly corner of Lot No. I 7;

Thence continuing on the sante course along the Westerly edge of Lot No. 17, a distance of One Hundred Forty-one andZero Hundredths Feet (141.00') to an iron pin;

Thence turning and running along the Northerly edge of Lot No. I 7 on a cou¡se of South Eighty-four Degrees, Zero Minutes, Ze¡o Seconds East (S 840 00'00" E) a distance of Two Hundred andZero Hundredths Feet (200,00') to an iron pin located on the Northe¡ly edge of Brick Kiln Road and at the Northeastedy corner of Lot No, l7;

'l hence turning and running along the same edge ofsaid road on a course ofNorth Six Degtees, Zero Minutes, Zero Seconds East (N 0ó0 00' 00" E) a distance of Forty-nine and Forty Hundredths Feet (49.40') to a point;

Thence continuing along the same edge ofsaid road in a Northerly and Northeasterly direction on a radius of One Hundred Fifty Feet (150') a distance of Ninety-six and Ninety-tluse Hundredths Feet (96.93') to an iron pin located at the Southwesterly more corner of Lot No. 30;

Thence tuming and nìnfling along thc Wcstcrly edge of Lot No. 30 on a course of North Eleven Degrees, Ten Minutes, Thirty-six Seconds.W'est (N I t0 l0' 36" W) a distance of One Hundred Seventy Four and Ninety-eight Hundredths Feet (174.98') to an iron pin; Thence tuming and running along the Northwestedy side oflsaid Lot No. 30 on a coursc of North Fifty-ttree Degrees, Thirty-seven Minutcs, Forty-five Seconds East (N 530 3?' 45" E) a distance of Two Hundred Tv elve and Twenty-eight Hundredths Feet (212.28') to an iron pin located at the Norlhwacterly corner of Lot No. 28;

Thence continuing on the saffe course a distance of Two Hundred Twenty-four and Twenty and Twenty Hundredths Feet (224.20') to an iron pin localed on the We sterly edge of Red Hill Road, so-called, at the Northeastedy corne¡ of Lot No. 28;

Thence tuming and running along a stone wall on the same edge of said road on a course of North Thirty- seven Degrees, 'l'hirty-four Minutes !-ourteen Seconds East (N 31u 34' 14' E) a distance of Sixty and One Hundredths Feet (60.01') to an iron pin located i¡ said wall at the Southeasterly corner ofland now or formerly of Doris S. Bacon; thence turning and running along the Southerly edge of said Bacon land on a course of South Fifty-three Degrees, Thirty-seven Minutes Fórty-fìve Seconds East (S 530 37 45" E) a distance ofOne Thousand One Hundred Seventy-five and Ninety-eight Hundredths Feel (l 175.98') to an iron p.ín locatcd at the Nodhe asterly corner of tot No. 8;

Thence turning and nurning alonghe Eastedy edge of Lot No. 8 on a course of South Zero Degrees, Five Mirlutes Forty Seconds East (S 00u 05'40" E) a distance of One llundred Sixty-two and Sixty-thrcc Hundledths Feet (l 62.63') to an iron pin located at the Southeasterly corner of Lot No. 8 on the culd-de-sac located at the Easterly end of Hombeam Hollow, so-called;

Thence turning to the left and running in an Easterl¡ Soutlreastetly, Southerly, and Southwesterly direction along the edge ofsaid culd-de-sac on a Fifty (50') Foot Radius a distance ofseventy-two and Eighty-nine Hundredths Feet (72,89') to an i¡on pin located on the edge ofsaid ould-dc-sac at a corner ofLot No, 9;

Page 10

KILN000084 Ë ä å

'á.

Thence tuming and running in a Northeasterly direction a dislance of Twenty-three and Six Htlndtedths Feet (23.06') to a point;

lìtrence turning and running along the Northeasterly side of Lot No. 9 on a course of South Sixty-four Degrees, Thirteen Mirnrtes, Seventeen Seconcls East (S 640 13' 17" E) a distance of One Hundred Sixty-one

and Ten Hundredths Feet ( 1 6l , 10') to an iron pin located at a Soulheasterly comer of Lot No. 9 and on the Northeasterly edge of Lot No. l5;

'Ihence turning aud running along the Northwesterly edge of Lot No. 15 ona cours€ ofNorth Sixty-eight Degrees, Thirty-seven Minutes, Forty-six Seconds East (N 680 37' 46" E) a distance of One Hundred Twenty-three and Forty-uine Hundredths Feet (123.49') to an iron pin located at thc Northcastedy corner of LotNo. l5;

Thence rurning and running on a courso of South Thirty-six Degrees, Twenty-six Minutes, Twenty-triúe Seconds East (S 360 26' 29' E) along the Northeasterly edge of Lot No. l5 a distance of One Hundred

Foufteen and Nineteen Hundredths Feet ( 1 1 4. 1 9) to an iron pin located at the Southeasterly corner of Lot No. l5 at the Northerly edge of Brick Kiln Road:

Thence turning and running along the Northerly edge of Brick Kiln Road on a course of North Sixty'one Degrees, Zero Minutes, Zei'o Seconds East (N ó 10 00' 00" E) a distance of One Hundred Nine and Thirty- two Hundredths Feet (109.32') to the point ofbeginning. The above described premises contained Five and Thirty-seven Hundredths Acres (5.3?), more or less.

e) COMMON AREA NO. 5: Beginning at an ironpin located on the Southerly edge of Brick Kiln Road, so' catled, at the North-westerly corner of Lot No. l8;

Thence running along the Westerly edge of Lot No, I I on a course of South Twenty-four Degrees, Fifty- seven Minules, Forty-sìx Seconds East (S 240 57' 46 8) a distance of Two Hundred Thifty-eight Feet (238'), more or less, to an iron pin located on the edge of Lake Kanasatka at the Southwesterly comer of Lot No. l8;

Thence tuming and running in a Southwesterly direction along the edge of saíd Lake Kanasatka to an iron pin locatcd at the Southeasteily corner of Lot No. 14;

Thence tuming and running along the Easterly edge of Lot No. 14 on a course of North Fifteen Degrees, Fifteen Minutes, Twenty Seconds West (N I50 15' 20" W) a distance of Two Hundred Twenty Feel (220'), more or less, to an iron pin localed at the Southerly edge of Brick Kiln Road at the Nortbeasterly comer of Lot No, l4;

Thence h,rmJng and running alon! the same edge of said Road on a course of North Sixty-one Degrees, Zero Minutes, Zero Seconds East (N ó 10 00' 00" E) a distance of One Hund¡ed Five and Seventy'ninc Hundredths Feet (105.79') io the poíff of beginning,

Ð COMMON AREA NO. 6: Beginning at an iton pin located on the Southerly edge of Bríck Kiln Road, so- called, at the North-easterly comer of Lol No. 24;

Thence turning and running along the same edge of said Road on a course of South Sevenly-four Degrees, Twenty Minutes, Twenty-six Seconds East (S 740 20'26" E) a distance of One Hundred Four and Twenty- one llundredths Feot ( 104.2 l') to a point;

KILN000085 Thence continuing along the same edge of said Road in a Southeasterly, Easterly and Nottheastetly clirection on a radius ofFour Hundred Feet (400') a distance of One Hundred Sixty'one and Eight Hundredths Feet (161,08') to a point;

Thence continuing on the same edge ofsaid Road in an Easterly and Soufheasterly rlirection on a radius of Fifty Feet (50') a distance of Fifty-seven and Twenty.five Ilundredths fcct (57,25') to a point located al a stone rvali at the Westerly edge of Red Hill Road, so-called;

Thence tuming and running and following another stone wall along the Northe¡ly edge of land now or formerly of one Hilton, on a course of South Fifty-tfuee Degrees, Seventy4hree Minutes, Forty-five Seconds West (S 530 37' 45" W) a distance of Six Hundred Ninety-four and Eighty-four llu¡dredths leet (694.84') to an iron pín located at the Northerly edge of said Hilton lancl and the Southeasterly comer of Lot No.20;

Thence turning and running along lhe Northeasterly edge of said Lot No, 20 on a course of North Fifty'four Degrees, Zero Minutes, Zeio Secãnds Wesr (N 540 00'00'' W) a distauce of One Hundred Twenty-nine and Eiglrty-four Hundredths Feet (129.84') to an iron pin located at the Southerly edge ofa culd-de-sac located at the Southerly end of Kilnwood Terrace, so-called;

Thence hrrning and running along the same edge of said culd-de-sac in a Northeastc¡ly, Norther'ly and Northwesterly direction on a radius of l'ifly Þ'eet (50') to a distance of Forfy-six and Forty Hundredths Feet (46.40') to an iron pin located atlhe Southwesterly corner of LotNo. 2l;

Thence turning and running along the Southerly edge of Lot No, 2l on a course of North Seventy'two Degrees, Forty-nine Minutes, Thirty-uinc Seconds East (N 72o 49'39'E) a distance of One Hundred Thirty-ñve and Sixteen Hundredths Feet (135.16') to the Southerly corner of Lot No, 2l;

Thence turning and running along the Northeasterly edge of Lot No. 2 I on a course of North Forty-two Degrccs, Fifìy-tkee Minutes, Twørfy-four Seconds V/esl (N 420 53'24'W) a dístance of Two Hundred Eþhty-four and Fourteen Hundredths Feet (284.14') to a point;

Thence continuing on a course of North Forty-three Degrees, Thirty Minutes, Four Seconds West (N 430 30' 04'' W) along the Norllreasterly edge of Lot 22 a disTance of Two Hundred Ninet1.51¡ and Sixty-six Hundredths Feet (296.66') to an jron pin located at the Southerly edge of Briok Kiln Road and the Northerly conrer ofLot No. 22;

Thence tunring and running along the Southerly edge of Brick Kiln Road on a çours€ olNortb Six Degrees, Zero Minutes, Zero Seconds East (N 060 00' 00" E) a distance of Sixty-seven and Thirteen Hundredths Feet (67.13') to an iron pin located at the Westerly corner of Lot No. 23;

Thence tuming and running on a course of South Forty-three Degrees, Thirty Minutes, Four Seconds East (S 430 30' 04" E) alongthe Southwesterly edge of Lot No, 23, a distance of Two Hundred Eighty-six and Sixty-two Ilundredths Feet (286.62') to an iron pin located at the Southeasterly corncr of Lot No. 23 and the Southwesteily corner of Lot No. 24;

Thcnce tuming and running on a course of South Síxty-nine Degrecs, Fifty-two Minutes, Eighteen Seconds Easf (S 690 52' lE: E) aloug the Southerly edge of Lot No. 24 a distance of Tb¡ee Hundred Thirteen and Seventy-one Hundredths Feet (31 3.71') to an íron pin located at the Southeasterly corner of Lot No' 24;

KILN000086 lï

Theuce tuming and running along the Southeasterly edge of Lot No. 24 on a course of North Forty Degrees, Scven Minurcs, Fìfty-crght Seoonds East (N 400 0? 58" E) a distance of One Hundled Eighty+wo and Thirty-six Hundredths Feet (182.36') to the point of beginning. The above described premises containing Three and Seventy Hundredtlts Acres (3,70), more or less.

at the c) COMMON AREA NO. 7: Beginning at an ilon pin located on the Northerly edge of Brick Kiln Road Southrvesterly conrel of Lot No. 25;

Thence running in a Northeasterly direction along the Southeâsterly edge of Lot No, 25 a distance of One Hundred Forly-eight and Eighty-eight Hundredths Feet (148.88') to an iron pin located on the Westerly edge ofRed Hill Road and Southeasterly corner ofLot No. 25;

Thence turning and running in a Southeastelly direction and following lhe Westerly edge of said Red Hitl Road in part aioug a stone wall a distance to a poinf, said point being located at the ifltelsection where the Westerly edge of Red Hill Road intersects with the Northerly edge of Brick Kiln Road;

Thence tuming and running along the Northerty edge of Brick Kiln Road in â Southwesterly, Westerly and Northvresterly direction along a Fifty Foot (50') radius to a point;

Thence continuing along the same edge of said Brick Kiln Road in a Northwesterly direction on a radius of Three Hundred Fifly Feet (3 50') a distance of Eighty-{ìve and Twenty-one Hundrcdths Fe et (85.2 1') to a point;

Thence continuing along the same er.lge of sajd Brick Kiln Road on a course of North Seventy-four Degrees, Twenty Minutes, Twenty-six Seconds East (N 7420' 26" E) a distance of Sevenp Feet (70') to the point of beginning. The abovc describcd premises containing Twelve Thousand square feet (l 2,000) more or less.

h) Description of Roads: The following roads are common areas:

Ijornbeam l-Iollow; Kilnwood Landing; Brick Kiln Road, and Kilnwood Tenace. Reference is made to the Revisecl Plan entitled "Kilnwood On Kan¿satka, À Conclominiurn f)evelopment fo¡ The Thomsorn, Cornpany, Ino., Moultonboro, New llampshire, datcd Novcmber 3,1970, Lakes Region Survey Seruice, [nc.", recorded in the Canotl County Registty of Deeds at PIan Book 24,Page 3, for a more complete description and location within said Condominiu¡n Development. t.) COVENANTS AND RESTRICTIONS FOR COMMON AREAS:

a) çOMMAN¿BEALIO,L ís reserved for a conrmuníty beach, picnic area, and boating facility. No structures may be erected other lhan toilet facilities, dressing rooms, dry boat storage and boat docks.

b) COMMON AREA NO. 2 is¡eserved for a natural buffer, No structure of any type may be erected on this area. Brush nray be cleared from the area to improve fhe view of the lake from lots numbered 4 and 5'

c) COMMON AREA NO. 3 is reserved for a wetland area. No structure of any type may be erected nor may any fìll beplaced witllin thisarea,

Page 13

KILN000087 r)

E Ë ß

d) COMMON AREA NO. 4 is reserved for water consçrvation and wildlife. No structure of any typ€ may be water suoh as a.dam. ãie"tr¿ other d.* that nr"essary for a comrnuuity water system or conservation . r"*is'roñi¡ rø ;;;es*tyñiralnfrnu¡, ur ãrectø oi the porion immediately sor¡ìhwesfõf'Lott'lo' 30.

e) COMMON AREA NO. 5 is reserved for wildlife and a natural buffer. No structure of any type may be erecfed in fhis area.

f) C-Oì4À4ON ,{BEAN!.é is reserved for a natural bù¡ffe¡ and rvàfei couÍre' C) COMMONAREANO. ?isreservedf

8.) DESCRIPTIONOF LIMITED CONTMON AREAI

The description of the limited conmon or shown on Revised Plan entitled 'Kilnw mi Thomson Company Inc., Moultonboro, 3, ice, Inc.", recordedin the Çarroll County Registry of Deeds at Plan Book 24,Page3, is as follows:

a) LOT NO. 2: Beginning al an iron pinlocated at the Westerþ edge of Kilnwood Landing and the Southeasterþ corner of Lot No, 3;

Page 14

KILN000088 Thence runniug on a course of South Seventy Degre es,7-eroMinutes, Zero Seconds Wesl (S ?00 00' 00" W) along the Southerly edge of Lot No. 3 a distance of One Hundred Thirty-five and Fifty-six Hundredths Feet (135.56') to an ilon pin located at the Southwesterly corner of Lot No. 3 and the Eastedy boundary of land now or formerly of one Kelley;

Thence hrming and running along land ofsaid Kelley on a coursç ofSouth Twenty-seven Degrees, Trventy-two Minutes, Five Seconds East (S 270 22' 05'E) a distance of Two Hundred Sixteen and Forty' nine Hundredths Feet (216.49') to an iron pin located at the Southwesterly comer of L¡t No. 2, herein described, the Easterly boundary of said land of said Kelley, and the Northwesterly comcr of Common A¡ea No. 1 .intersecting with said Kelley land;

Thence tunring and running in a Northwesterl¡r direction along the Northern boundary of said Common A¡ea No, I a distance of Onc Hundred Thirty-three and Eighty-five Hundredths Feet (133.85') to an iron pin located at lhe Westerly edge of said Kilnwood landing;

Thence turning and rururing on a radius ofsix Hundred and Ten Hundredths Feet (600.10') a distance.of Nine ty.one anã Ninety-ninê Hunclredths Feet (9 1 .99') along the Westerly edge of said Kilnwood Landing to a point;

Thence continuing on a course of North Twenty-eight Degrees, Forty-six Minutes, Filly-seven Seconds West (N 280 46' 57" W) along the lVcsterly edge oFsaid Kilnrvood tanding a distance of One Hundred Twenty-fourandFifty-fourHundredthsFeet(124.54')tothepointofbegiming. LotNo.2isreservedfor the exclusive use ar¡d enjoyment of Unit No. 2, subject to the other provisions of this Declaration, b) LOT NO. 3: Beginning at a bronze table located at the Westerly edge of Kilnwood Landing, so-called, and the Southeasterly conrer of Lot No. 4;

Thence running on a course of South Seventy-Degrees, Zero Minutes, Zero Seconds West (S ?00 00' 00" lV) a distatce of One Hundred Eight¡seven and Nineteen Hundredths Feet (187. l9') to an iron pin located at the Southrvesterly corner of Lot No. 4, the Nortltwesterly comer of Lot No, 3, herein dascribed, and the Easterly edge of land now or formerly of one Kelley;

Thence running on a course of South Twenty-seven I)egrees, Twenty-two Minutes, Five Seconds East (S 2':.0 22' 05" E) along said Easterly edge of said Kelley land a distancs of One Hundred Ninety-nine and Forty-tfuee llundredths Feet ( I 99.43') to an iron pin located at the Southwesterly comer of said Lot No. 3' herein described, the Northwesterly conrer of Lot No, 2 and said Easterly edge of said Kelley land;

Thence turning and running or a course ofNo¡th Soventy Degrees, Zero Minutes, Zero Seconds East (N 700 00' 00" E) along rhe Northerly edge of Lot No, 2 a distance of One Hr¡ndred Thirty-five and Fífty'six Hunilredths Feet (135.5ó) to an i¡on pin locaterJ on the Westerly edge of said Kilnwood Landing at the Nofheastcrly conrcr of said Lot No. 2 and the Southcasterly corner of said Lot No. 3, herein described;

Thence turning and running along the Westerly edge of said Kilnwood Landing on a radius of One Hundred Sevent¡five Feet (l?5') a distance of Sixty-one and Eighty-eight Hundrçdths Feet (61.88') to a point;

Thence continuing on a course ofNorth Eight Degrees, Thirty-one Minutes, Eighteen Seconds West (N 080 3l' 18" W) along the Westerly edge of said Kilnwood Landing a distance of One Hundred Eight and Fifty- six Hundredths Feet (108.56') to a point;

Page l5

KILN000089 I il !l

Thence continuing on a radius of FiftyFeet (50') a distance of Thirfy and FiveHundredths Fect (30.05') to the point of beginning. Lot No. 3 is reserved for the exclusive use and enjoyment of Unit No. 3, subject to the oihel provisions ofthis Declaration.

c) LOT NO, 4: Beginning at an iron pin situate at the Westerly edge of Kilnwood Landing, so-called, at the Southeasterly corner of I¡t No. 5 and the Northeasterly corner of Lot No. 4, herein described;

Thence running on a course ofSouth Seventy Degrees, Zero Minutes, Zero Seconds West (S 700 00'00" W) along tlre Southerly edge of t ot No. 5 a distance of Two Hundred Seven and Six Hundreddrs Feet (207,06'\ to an j¡on pin Iocatcd at the Southwestcrly corner of said Lot No,5, the Northwesterly corner of Lot No. 4, herein described, and the Easterly edge of land now or formerly of one Kelley;

Thence rurning and running on a coursg of South Trventy-seven De Seconds East (S 270 22'05" E) along said Easterly edge ofsaid Kel Fifty-four and Ninety-five Hunclredihs Fcet (154.95') to an íron pin of Lot No. 3, the Southwesterly corncr of Lot No. 4, herein dcscribed, and said Easterly edge of said Kelley land;

Thence tumurg and running on û course of North Seventy Degrees, Zero Minutes, Zero Secortds East (N 700 O0'00" E) along the Norttrerly edge of Lot No. 3 a distance of One Hundred Eighty-seven a¡d Nineteen Hundredths Feet (187.19) fo a bronze ablct located at thc Northeasterty corner of Lot No. 3, thc Southeasterly corner of Lot No. 4, herein described, and the Westerly edge of said Kilnwood Landing;

Thence tuming and ruming aloug the Westerly edge of said Kilnwood Landing on a course of North Twenty Degrees, Zero Minutes, Zero Seconds West (N 200 00' 00" W) a distance of One Hundred Fifty' fhree and Sixty-seveu Hrurdredths Feet (152.ó1') to the point of beginning. I.ot No. 4 is reserved for the cxclusive use and enjoyment of Unit No, 4, subject to lhe other provisions of this Dcolaration. d) LOTIIO. 5: Begiruring at an iron pin located on the Wesferly edge of Kilnwood Landing, so'called, at the Soutlreastcrly corner of Lot No, 6 and the Northeasterly comer of Lot No. 5, herein desclibed;

Thence running on a course of South Seventy-Degree, Zero Miuutes, Zero Seconds West (S 700 00' 00" W) along the Southerly cdge of Lot No. 6 a distance of Two Hundrcd Fourteen and Seventy-three Hundredths Feet Q14.73) to an iron pin located a the Southwesterly corner of Lot No, 5, herein described, and said Easterly edge of said Kelley land;

Thence tunring and ruluing on a course of South Twenty-sevçn Degrees, Twenty-two Minutes, Fivc Seconds East (S 270 22'05n E) along the Easterly edgr: ofsaid Kcllcy land a distance ofOne Flundred Forty-one anrl Fifteen Hundredths Feet (l4l.l5') to an iron pin situate at the Northwesterly comer of Lot No. 4, the Southwesterly comer of Lot No, 5, herein described, and said Easterly edge of said Kelley land;

Thence rurning and running a course of North Seventy Degre es,ZeroMinutes, Zero Seconds East (N 700 00'00" E) along the Southerly edge ofLotNo. 4 a dista¡cc ofTlvo Hundred Seven and Six Hundredths Fee t (207.06') tã an iron pin locatéd a I the Northwesterly corner of l,ot No. 4, the Southeasterly corner of Lot No, 5, herein described, and the Westerly edge of said Kilnwood landing;

Thence turning and running on a couÍse of North Twenty Degrees, Zero Minutes, Zero Seconds West (N 200 00' 00" V[) along the Westerly edge of said Kilnw od Landing a distance of Sixty-eight and Eighty-five Hundreddrs Feet (ó8.85') to â point;

Page 16

KILN000090 Thence running along the Westetly edge of said Kilnwood Landing on a radius of Two Hundred Forty- seven arrd Seventy-two Hundr edths Eeet (247 .72') a distance of Seventy-two and Fifteen Hundredths Feet (72.15') to the point of beginling. Lot No. 5 is reserved for the exclusive use aud enjoyment of Unit Ìrro. 5, subject to the other pruvisions of this Declaration. e) LOT NO. 6: Beginning at an iron pirr located at the Westerly edge of Kilnwood Landing, so-called, at the Northeasterly comer ol Lot No. 6, herein described and the Southeasterly corner of Conunou A¡ea No. 3;

Thence running on a course of North Eighty-six Degrees, Fifty Minutes, Thirty-eight Seconds West (N 860 50' 38" !V) along the Southerly edge of Òommon A¡ea No, 3 a distance of Trvo Hundrcd Twcnfy'three and Seventeen Hundredths Fect (223.11') to an iron pin located at the Southwesterly conter of Common Area No, 3, the Northwesterly corner of Lot No, 6, herein described, and thc Easterly edge of land now or fonnerly of one Kelley;

Thence turnìng and nrnning on a course of South Twenty-seven Degrees, Twenty-two Minutes, Five Seconds East (S 270 22' 05" E) along said Eastelly edge ofsaid Kelloy land a distance ofTwo Hundred T'welve and Three Hundredtìrs Feet (2t2.01') to an iron pin located at the No¡thrvesterly comer of Lot No' 5, the Southwesterly comer of Lot No. 6, herein described, ancl said Easterly edge of said Kelley larrd;

l'hence turning and running on a course of North Seventy Degrees, Zero Minutes, Zero Seconds East (N 700 00'00" E) along the Northerly edge oflot No. 5 a distance ofTwo Hundred Fourteen and Seventy- tfuee Flundredrhs Feet (214,73') to an iron pin located a the Westerly edge of said Kilnwood Landing, the Northeasterly corner ofsaìd Lot No. 5 and the Southeastefly corner oflol No. 6, herein described;

Thence tunring arrd nrnning along the Westerly edge of said Kilnwood tanding on a coursc of North 'l'hirty-six Degrees, Forty-one Minutes, Seventeen Seconds West (N 360 4l' 17" W) a distance of One Hundred TwJnty-seven ãnd Ninety.one Hundredths f eet (127.91') to the point of beginning. Lol No. 6 is rsse¡ved for the exclusive use and enjoyment ofUnitNo. ó, subjcct to thc olhor provisions ofthis Declaration.

LOT NO. 7: Beginning al an iron pin located on the Northerly side of Hombeam Hollow, so-called, the Southwesterly comer of Lot No. 8 and the Southeasterly corner of Lot No. T,heren described;

Thence running on a course of North Thirt¡six Degrees, Twenty-iwo Minutes, Fifteen Seconds V/est (N 360 22' 75' W) along the Westerly edge of Lot No. 8 a distance of One Hundred Forty-six and Zerc Hundredths Feet (146.00') to an iron pin located at the Northwcsterl¡r comer of Lot No 8' thc Northeasterly comer of [,ot No, 7, herein described, and the Southerly edge of larrd now o¡ formerly of one Doris S. Bacon;

Thencc hrming and mning on a course of Soutl¡ Iifty-three Degrees, Thirty-seven Minutes, Fotty-five Seconds West (S 530 37' 45" W) along said Southedy edge of said Bacon land a distance of Two Hundred Trventy-eight and Twenty-four Hundredths Feet (228.24') to an iron pin located on tlre Easterly edge of Kilnwood Landing aud the North\¡/esterly corner of Lot No. 7, herein described;

Page 17

KILN000091 { r

Thence turning and running on the Easterlv edge ofsaid Kilnwood Landing on a radius ofEighty-seven and Fifty-two Ilundredths Feet (87,52') a distance ofNinety and Eighty-fìve Hundredths (90.85') Feet to a point;

Thcnce running along the Eastcrly edge ofsaid Kilnwood Londing on a course of South Eiglity-six Degrees, nifty Minutès, Thirty-eight Seconds East (S 860 50' 38" E) a distance of Eighty-nine and Twenty- two Hundredths Feet (80.22') to a point;

Thence ruming along the Easterly edge of said Kilnwood Landing and the Northerly edge of Honrbeam Hollow on a radius of Thirty-fìveand Zero Hundredths Feet (35.00') a distanec of Twenty-four and Fifteetr Hundledths Feet (24.l5') to a point;

Tlience running on the Noriherly edge ofsaid }lornbeam Hollow on a coutse ofNorth hfty-three Degrees' Thirty Seven Minutes, Forty-five Seconds East (N 53 31' 45' W) a distance of One Hundred Six and Forty Hundredths Feet (106.40') to the point of beginníng. Lot No. ? is reserved for lhe exclusive use and enioyment of Unit No. 7, subject to the otherprovisions of this Declaration.

ù- LOT NO. 8: Beginning af an iron pín located at the Soulheasterly comer of Lot No. 8, hereín described, and the Westerly edge of Common Arèa No, 4 and the Northerly edge of the Culd-de-sac or turn-around, so- called, on Hombearn Hollow, so-called;

Thence running along the Westerly edge of Comm ro Degrees, Fire Minutes, Forty Se.corids, East (N 000 05'40" E) a d Sixty-three Hundredtlrs Feet (162.63') 1o an iron pin located aL Arca No' 4 and the Northcastcrly comer of Lot No.8, hercin dcscri w or formedy of Doris S, Bacon;

Thence hrrning and runniug on a course ofsouth Fifty-three D Forty-hve seconds West (S 530 3'1' 4I'W) along said Southerly edge of s wo Hundred Fifty-six and Thirty-three Hundredthi F eet (256.33') to an i¡on y corner of Lot No. 7, the Norihwesterly corncr ofLot No. 8, herein descrìbed, and said Southerly edge ofsaid Bacon land;

Thonce tuming and runuing on a course of South Tlúrty-six Degrees, Twenty-two Minutes, ltfteen Seconds East (S 360 2t 15" E) along rhe Easterly edge of Lot No. 7 a distance olone Hundred Forty'six and Zero Hu¡rd¡edths Feet (146.00') io an íron pin located at the Southeasterly corner of I¡t No. 7, Southwesterly come¡ of Lot No, 8, herein desoribed, and the Northerty odge of said Hornbeam Hollow;

Thence turning and running on a course of Nofh Fifty{brcc Degtees, Thirty-seven Minutes, Forty-five Secorids East (N 530 3'7' 45" E) along the Northerly edge of said Hombeam Hollow a distance of Seventy- six and Thirty-lhree Hunclredths Feet (76.3J');

Thcnce running on a radius of Twenty Peet (20) on the Northerly edge of said Hombeam Hollow a distance of Seventeen and F'orty-fìve Hundredths Feet (17.45') to a point;

Thence turning and nrnning on a radius of Fifty Feet (50') on the Northerly edge of Hornbeam Hollow a distance ol seventy-five anrl Forty-five Hundredths Feet (75.45') to the point of beginning' Lot No. 8 is reserved for thc exclusivc usc and cnjoynent ofUnit No, I, subject fo the other provisions of this Declaration,

Page I I

KILN000092 È E fi

h) L-O-T-lgQ-g Beginning at an iron pin located on the Southerly edge of Hombeam Hollow, so-called, the Northea,sterlycornerof l,ot No, l0 and theNorthwesterly comerof LotNo. 9, herein described;

Thence running en a couÍse of South 430 25' 29" East a distance of 186.01 fcot along the edge ofsaid Lot No, 10 to an iron pin located at the Easterly comer of Lot No. I0 and the Northerly corner of Lot No. i 1;

Thence turning and running on a course of South 360 14' O'lu East a distancc of 6 I .50 feet to a point at the Norlheasterly edge of Lot Nc. I t and the Westerly comer of Lot No, 13;

Thence turning and running on a cours€ ofNorth 410 5 l' 46" East a distance of 1 00 feet to a point;

Thence turning and mning on a course of North 360 V' 07'West a distance of ó 1.50 feot to a point;

Thence tuming and running on a course of North 410 5 1' 46" East a distance of 106.76 feet to an iron pin Iocated at the Southwesterly edge olComnron Area No. 4 and, at the Easterly coruer of Lot No. 9, herein described;

Thence turning and running on a course ofNoñh 640 ß' yl- West along the Southwesterly edge of Common A¡ea No, 4 a distance of 161.10 feet to an iron pin at the Northerly cotrer of Lot No. 9, hetein described;

Thence turning and running on a course of South 530 37'45" West a distance of 23,06 feet to au iron pin at the Northeasterly end of Hombeam Hollow culd-de-sac;

Thence tuming and runníng along the Southeasterly edge of Hombeam Hollow in a Southerly, Southu'esterly, and Westerly direction on a radius of 50.00 leel a distance of 95,99 fect to a point on said Hornbeam Hollow;

Thence continuirrg in a Westerly direction along said Hombeam Hollow on a radius of 20,00 feet a distance of 17 .45 feet to an iron pin on the Southeasterly edge of Hornbeam Hollow;

Thence tuming and ruming along Hornbeam Hollow or a course of South 530 31' 45" West a distance of 30,00 feet to the point of begiming. Lot No, 9 is rcserved for the exclusive use and enjoyment of Unit No, 9, subject to the other provisions of this Declaration. i) LOT NO, t0: Beginning at an iron pin located on the Southedy edge of Hornbeam Hollow, so-called, the Northwestedy corner of Lot No. 9 and the Noftheasterly come¡ of Lor No. I0, he¡ein described:

Thence running on a course of South Forty-tluee Degrees, Twenty-fivo Minutes, lwenty-nine Seconds East (S 430 25' 29" E) along the Westerly edge of Lot No. 9 a distance of One Hundred Eighty-six and One Ilundredtbs Feet (l 86.01') to an irol pin locate d at the Northe asterly corner of Lot No, I l, and the Southeasterly corner of Lot No. I 0, hereín described;

Thence turning and running on a oourse of South Twenty-nhre Degrees, Fifty-one Minutes, Thirty-six Seconds West (S 290 51 36' W) along the Northerly edge of Lot No, 11 a distance of One Hundred Sixty- three and Forty-four Hundredths feet (163.44') to an iron pin located on the Easterly edge of Kilnwood Landing, so-called, the Northwesterly comer of Lot No, t I and the Southwesterly corncr of Lot No, 10, herein described;

KILN000093 Thence tuming and running in a No¡lhwesterly direction on the Eastedy edge of said Kilnwood Landing on a radirrs of Two Hundred Ninety-seven and Seventy-two Hund¡edths Feel (297.72') a clistance of Sixty-six and Twenty-one Hundredtlm Feel (66.21') to a point;

Thence runnirrg on å course of North Thirty-six Degrees, Forly-one Minutes, Seventeen Seconds West (lÑ 360 47' 17" W) along the Easterly side of said Kilnwood Landing a distance of Onc Hundred Fifty-nine and Sixty-four Hu¡d¡edths Feet (159.64') to a point;

Thence fuming and running in a Northeasterly direction on a radius of Twenty'-frvo Foot (25') along the Easterly edge of said Kilnwood Landing and the Southerly edge of Hombeam Hollow a distance of Thirty- ni¡re antl Forty-one Hund¡edths Feet (39.41') to a point; Thence tuming and rururing on a course of North es, Fotty-five Seconds rnst [N 530 3?'45i' E) along tbe Souther ofNinety-five and Sixty-live Hundredtlis Feet (95.65') to tfte poi for the exclusive use and enjoyrnent ofUnit No, 10, subject to the other provisions ofthis Declaratiou' j) LOT NO. 1 l: Begmning at an iron pin located on fhe Easterly edge of Kilnwood Landing, so'called, the Southwesterly corne¡ of Lot No. I 0 and fhe Northwesterly comer of Lot No. I I, herein described;

Thence running ou a course of North Twenty-nine Degrees, Fitty-ono Minutes, Thirty-six Seconds East (N 2go 51 36" E) along the Southerly edge of Lot No. I 0 a distance of One Hundred Sixty-three and Forty- fourHundredthsFeet(163.44')toan jronpinlocatedattheSoutheasterlycomerofLotNo. l0,andthe Northeasterly corner of Lot No, I 1, herein described;

Thence hrrning and nrnning on a course of South Thirty-six f)egrees, Fouleen Minutes, Seven Second-s East (S 360 I 4' 07" E) along the Westerly edge of Lot No. 9 and Lot No. 13 a distance of Two Hundred 'l'hideerr and Sevenfy-two Hundredths Feet (213.72') to an iron pin located on the Northerly edge of Bríck Kiln Road, so-called, the southwesterly comer of Lot No. t3 and the Southeasterly corner of Lot No. 1l' herein described;

Thence turning and running on a course ol'South Fiflty-three Degrees, Forty-five Minutes, Fifty'three Seconds West (S 530 45' 53" W) along the NoÉherl; edge of said Brick Kiln Road a distance of One Hundred Twenty-five and Zero Hundrerlths Feet (125,00') to a point;

Thence running on thc Northsrly cdgc of said Briok Kiln Road and the Easterly edge of Kilnwood Landing, so-called, in a Northwesterly direction on a radius of Fifly Feet (50') a distance of Ninety-two and Seventy- one Hundredths Feet (92.71') to a point;

Thence running on a course of North Twenty Degrees, Zero Miuutes, Zero Seconds West (N 200 00 00" W) on the Easterly edge of said Kilnwood Landing a distance of Sixty-six and Twenty-eightHundredths Feet (66.28') to a point;

Thence running in a No¡thwesterly direction on the Easterly e.dge of said Kilnwood tanding on a radius of Two Hundred Ninety-seven and Seventy-two Hundredths Feel Q9't .72') a distance of Twenty and Fifty Hundredths Feet (20.50') to the point of beginning. Lot No, I I is reserved for the exclusive use and enjoyment of Unit No. 11, subject to the other provisions of this Declaration.

Page 20

KILN000094 å ä

k) LOT NO, t 2: Beginning at an iron pin siluate at the Northwcsterly comer of land now or formerly of Doris S. Bacon, said lot being located on the shore of Lake Kanasatka ând showlt as Lot No, I ;

Thence running on a course of South Eighteeu Degrees, Twenty-three Minutes, Forly-seven Seconds East (S 180 23' 47" E) along the Westerly edge of said Lot No, l, a distarrce of One Hundred Seventy-two and Sixty-sìx Hundredths Feet (172.66') to an iron pin;

Thence continuing on the same course froln said iron pin to the edge ofLake Kanasatka;

fhence tuming and running in a Northv¿esterly, tilesterly and Southwes[erly direction along the edge of said Lake Kanasatka to an iron pin located on the shore of Lake Kanasatka, the Souilleasterly comer of Common Area No. 2 and the Southwesterly corner of l.ot No. 12, herein described;

Thence turning and running oD a course ofNorth Forty Degrees, Two Minutes, Ten Seconds V/ast (N 400 02' 10" W) along the Easterly edge of Common Area No. 2 a distance of One Hund¡ed Twenty-six Feet ( 126'), morc or less, to an iron pin located on ihe Southerly edge of said Brick Kiln Road, the Northerly corner of Common A¡ea No, 2 and the Northwesterly corner of Lot No. 12, hereín described;

Thence furning and running on a course of North Fifty-ttree Degrees, Forty-live Minutes, Fifry-three Seconds East (N 530 45' 53" E) along the Southerly edge of said Brick Kiln Road a distance e ofTwo Hundred Thirty-two and F'ifty-seven Hundredths Feet Q32.57') to the point of beginning, Lot No. l2' subjeot to the other provisions ofthis Declaration,. l) LOT NO, l3: Beginning at an iron pin located on the Northerly edge of Brick Kiln Road, so-oalled, at the Southeasterly oorner of Lot No, I I and the Soulhwesterly corner of Lot No. 13, herein described;

Thcnce lunning on a cour$o of North Thirty-six Degrees, Fourteen iVfinutes Seven Seconds West (N 360 14' 07" W) along the Easterly edge of Lot No. I I a distance of One Hundred Fifty+wo and Twenty-two Hunrlredths Feet (152.22) to ãn iron pin located at the Southwesterly comer of Lot No. 9, the Southeasterly comer of Lot No, 10, the Northeasterly edge of tot No, I I and the Vy'estorly corner of Lot No. 13, herein described;

Thence turning and running on a course of Nolh Forty-one Degrees Fifty-one Minutes, Forty-six Seconds East (N 410 5l'46" E) along the Southerly edge of l.ot No. 9 adistance of One Hundred andZeto Hund¡edths Feet (100,00'), to a poinq

Thenco tuming and running on a course of North Thirty-six Degfees, Fourteen Mirutes Seven Seconds V/e.st (N 360 14' 07' W) a distance of Sixty-one and Fifty Hundredths Feet (61,50') to a point;

Thence tuming and running on a course of North Forty-one Degrees, Fifty-one Minutes, Forty-six Seconds East (N 410 5i' 46" E) a diitance of Sixty Feet (60') to an iron pin located at the Westerly corner of Lot No' 15, on thc Southeasterly edge of Lot No, 9, and the Northerly comer of LotNo, 13, herein described;

Thence tunring and running on a course of south Thirty-five Degrees, Four Minutes, Eieven Seconds East (S 350 04' I I " E) a distance of Two Hundred Ten ard fifteen Hundredths Feet (210.15) to an iron pin on the Northwesterly edge of Brick Kiln Road, af the Southerly corner of Lot No, I 5 and the Easterly corner of Lot No, 13, herein described;

Page 2l

KILN000095 çå I ë ::

Thence tunring and nmning along the Northwesterly edge of Brick Kiln Road on a radius of Onc Hundred Twenty-fivc Fcct (125') a distance of Ninety-cight and Seventeen Hundredths Feet (98.1?') to a point;

Thence continuing along Brick Kiln Road on a coursc of South Fifty-three Degrees, Foriy-five Minutes, Fìfty-three Seconds tllest (S 530 45' 53" W) a distance ofSixty-three and Eighty-nine Hundredths Feet (63.89') to the point of beginning. Lot No. l3 is reserved for the exclusive use and enjoyment of Unit No. 13, subject to the other provisions of this Declaratjon.

rn) LOT NO. 14: Beginning at an iron pin located on the Southerly edge of Brick Kiln Road, so-called, at the Northwesterly come¡ of Cornnlon Area No. 5, and the Northeastedy corner of Lot No, 14, hercin described;

Thence running on a course of South Fifteen Degrees, Fifteen Miuutes, Twenty Seconds East (S 150 15'2t1" E) along the Westerly edge of Common A¡ea No. 5 a distance of f'wo llundred Twenty Feet (220')' more or less, to the edge ofLake Kanasatka;

Thence turning and running in a Westerly, Southeasferly and Southwesterly direction fotlowing the shore of Lake Kanasatka to an iron pin located on the Easterly edge of Lot No. And the Southwesterly corner of Lot No. 14, herein de¡cribed;

Thence tuming and running on a coùrs€ of North Fifty-four f)egrees, Thirty-four Minutes, Forty-four Seconds Wesi (N 54o 34' 44" W) along the Noriheastedy edge of Lot No. 1 a distance of One Hundred Seventy-two and Eighty-four Hundredths Feet (172.84') to an irou pin;

Thence tumìng and running on a course of North Eight Degrccs, Twenty-three Minutes, Eleven Seconds West (N 080 23' I I " W) a distance of Thirty and Fìfty-two Hundredths Feet (30.52') to an iron pin located on the Southerly edge of Brick Kiln Road, af the Northeasterly corner of Lot No. l;

Thence tunring and running along the Southerly edge of said Brick Kiln Road on a radius of One Hundred Seventy-fivo feet (l?5') a distance of Eighty-three and Seventy-two Hundrcdths Feet(83.72') to a point;

Thence following the Sourherly edge of said B¡ick Kiln Road on a course of North Eight Degrees, Forty- five Minutes, Fifty-tkee Seconds East (N 080 45' 53 " E) a distance of Thirty-threc and Ninety-seven I{undredths Feet (33.97') 1o a point;

Thence following the Southerly edge of said Brick Kifn Road on a radius of One Hundred Twenty-five Feet (125') a distance of One Hundred Thirteen and Ninety-six Hundredths Feet (l13,96') to the point of beginning. Lot No. I 4, is reserved for tlie exclusive use and enjoyment of Unit N. I 4, subject to the other provisions of this Declaration. n) LOT NO. 15: Beginning at an ¡¡on pin located on the Northerly edge of Brick Kiln Road, so-called, at tbe Southeasterly comer olLot No. l3 and the Southrvesterly corner of Lot No. 15, herein described;

Thence running oil ¿t course of North Thirty-fìve Degrees, Four Minutes, Eleven Seconds West (N 350 04' I I " W) aloug the Easterly edge of Lot No. 13 a distancc of Two Hundred Ten and Fifteen Hundredths l-eet (21O. 15') to an iron pìn located at the Northeasterly corner of Lot No, 13, the Southerly edge of Lot No. 9 and al a corner of Lot No. I 5, herein described;

Page 2I

KILN000096 â

E È

Thence turning and running on a course of North Forty-one Degrees, Fifty-one Minutes, Fony-six Seconds East (N 410 51'46" E) a distance of Forty-six and S;cventy-six Hunilredths Feet (46,?6') to an iron pin located on the Southerly edge of Common Area No, 4;

Thcnce rurníng and rumring on a course of North Sixty-cight Degrees, Thirty-eeven Minutes, Forty'six Seconds East (N 680 3'7' 46" E) along the edge of Common A¡ea No, 4 a distance of One Hundred Twenty- No, 4 thre e and Forty-nine Hundredths f eet ¡ I 23.49') to an iron pin located on the edge of Comnron fuea and the Northcastcrly comcr of Lot No. 15, herein described;

Thence turning and nrnning o¡l a course of South Thirty-six Degrees, Twenty-six Minutcs, Twenty-nine Seconds East (S 3ó0 26'29¡ E) along the edge ofCotnmon Area No. 4 a distance ofOne Hundred Fourteen and Nineteen Hundredths Feet (l 14.19) to an iron pin located on the Northerly edge of Brick Kiln Road, at the Southwestedy corner of Common A¡ea No. 4 and the Southeasterly corner of Lot No, 15, herein described;

Theuce turning and running on the Northerly edge of said Brick Kiln Road in a Southwesterly direction on a radius of One Hundred Trventy-five Feet (125') a distance of One Hundred Fifry-nine and Fifty-four Hundredths Feet (159.54') to a þoint;

Thence continu t Degrees, ee Seconds West (S 080 45' 53" w) Ninety-se to the point of bcginning, Lot lusive use 5, subject to the other provisions of this Declaration. o) LOT NO. 16: Beginnìng at an iron pin locatcd on the Northerly edge of Brick Kiln Road, so-called' and a corner of Cornmon Area No, 4 where tl.re same intersects with said Brick Kitn Road and the Southwesterly come¡ofLotNo. l6,hereindescribedandaSoutheasterlyedgeofCor¡nronAreaNo'4;

Thence runnitrg otr a course of North Twenty-four Degrees, Fifty-seven Minules, Forty-six Seconds West (N 240 5?' 46" W) along an edge of Comrnon Area No. 4 a distance of Two Hundred Seven and Two Hundrcdtln Feet(207.02') to an iron pin;

Thence turning and ruming on a course of North Six Degrees, Zero Minutes, Zoro Seconds East (N 060 00' 00" E) along an edge of Common fuea No. 4 a distance of Thirty-four Feet (34') to an iton pin located at the lMesterly comer of Lot No . l7 and the Nofhwesterly corner of Lot No. i 6, herein describe d;

(S 'Ihence tumíng and runfling otr a course of South Eighty-four Degrees, Zero Minutes, Zero Seconds East 840 00'00"8) ãlong the Southerly edge oflot No. li a distance of Two Hund¡ed andT'erc Hundredths Feet (200,00) to an iron pin located at thc Westerly edge of said Brick Kiln Road, the Southerly cornel of Lot No, l7 and the Easlerly comer of Lot No. ló, herein described;

Thencc tuming and running on the V/esterly edge of said Brick Kiln Road on a course of South Six Degrees, Zero Minutes, Ze¡o Seconds V/est (S 060 00' 00" lV) to a distance of Ninety-four and Zeto Hunrlreclths Feet (94.00') to a point;

Thence continuing on said edge of said Brick Kiln Road in a Southerly and Soulhwesterly direction rtn a radius of One Hundred Feet (i00'; a distance of Ninety-five and Nilet¡nine Hundredths Fcet (95.99') to a point;

Page 23

KILN000097 Thence continuing on said edge of said Brick Kiln Road ero Minutes, Zero Seðonds West {s 610 00' 00" 'w) a distanc 62'01') to the point of beginning. Lot No. 16 is reserved for the 6, subject to the other provisions ofthis Declaration.

p) LOT NO. l7: Beginning at an iron pin located on the Westerly edge of Brick Kiln Road, so-called, at the Easterly corner of Lot No. I 7, herein described;

Thenoe running on a course of North Eìghty-four Degrees, Zero Minutes, Zero Seconds West (N 84 00'00" W) along the Nlrtherly edge of Lot No,l6-a distanc. of Trvo Hundred and Zero Hundredths Feet (200'00') to au jroir pin located it thè Northwesterly comer of L¡t No. 16, on an edge of Common Area No. 4 and at the Southwesterly corner of Lot No. I 7, herein desc¡ibed;

Thence turning and running on a coune of Noth Six Degrees, Zero Minutes, Zcro Seconds East (N 060 00' 00" E) along an edge of Common Area No. 4 a distance of One Hundred Forty-one andZerc Hundredths Feet (141 .0õ) to an iron pin located at the Nbrthwesterly comer of Lot No. 17, herein described, and said edge ofCommon A¡ea No. 4;

(S Thence turning and rururing on a course of South Eighty-four Degrees, Zero Minutes, Zero Seconds East 840 00'00" E) on an edge of Conrmon Area No, 4 a distance of Two Hund¡cd uñZao Hundrodths Feet (200.00') to an iron pinlocated on the Westerly edge of said Brick Kiln Road, af the Northeasterly comer of

Lot No. 1 7, herein discribed, and a corner of Common Ärea No. 4 irrte¡secting with said Briok Kiln Road;

Thence turning and running on a course of South Six Degrees, Zero Minutes, Zero Seconds West (S 0ó0 00' 00" W) along ihe Westerly erlge of said Brick Kiln Road a distancc of One Hundred Forty-one ar,:dZero Hundredths Feet (141.00'j to the point of beginning. Lot No. l7 is reserved fo¡ the çxclusive use and enjoyment of Unit No, 1 7, subject fo the other provisions of tûis Declaration. q) LOT N.Q. l8: Begiruling at an iron pin located on the Southerly edge of Kilnwood Tenace, so'called, at the Northeasterlycornerof LotNo. lS,hereindescribed, andtheNorlhwesle¡lycornerof LotNo' l9;

Thence running on a course of South Fifteen Degrees, Twenty-one Minutes, Twelve Seconds West (S 150 2l' 12" W) along rhe Westerly edge of LotNo, 19 a distance of Two Hundred Twenty-five andZero Hundredths Feet (22-s,00'), more or less, to an iron pin located at the Southwestedy comer of Lot No, l9' on the edge of Lake Kanasalka and the Southeasterly corner of Lot No. 18, herein described;

Thence lurning and running in a Northerly, Northwesterly and Southrvestcrly direction along the shore of LakeKanasatÈatoanironlínlocatedatfheSouthwesteriyconreroflotNo. ls,hereindescribed,andthe Southeasterly corner of Common A¡ea No. 5;

iln 18, herein descritred;

Page 24

KILN000098 t ã + .î

Thence turning and running along the Southerly edge of BrickKiln Road on a course of North Sixty-one Degrees, Zero Minures, Zero Seconds East (N 610 00' 00u E) a distance of Fifty-one and Four Hundredths Feet (51.04') to a point;

Thcnce oontinuing on the Southerly edge of said Brick Kiln Road and the Southerly odge of Kilnwood Terrace, so-called, on a radius ofOne Hundred Feet (100') a distance ofOne Hundred Thirteen anclForty- five Hundredths Feet (113.45') to a point;

Thence continuing on the Southerly edge ofKilnwood Terrace on Zero Minutes, Zero .Seconds East (S 540 00'00" E) a distanoe of S Feet(66.74') to the point of bcgiuning, Lot No. 18 is reserved for flir No, 18, subject to thc other provisions of this Declaration.

LOT NO, l9: Beginning at an iron pin located on the Southerly edge of Kihwood Terrace, so-called, flre Northeastefly corner of Lot No. l8 and the Northwestedy corner of Lot No. 19, herein described;

Thence running on a course of Soutlr Fifteen Degrees, Twenry-one Minutes, Twelve Seconds West (S 150 2l' 72" W) along the Easterly edge of LotNo. l8 a distance ofTwo Hundred Twenty-five Feet(225'),mote or less, to an iron pin located on ihe shore ollake Kanasatka, the Southeasterly corner of Lot No, I 8 and the Soufhwestcrly comor of Lot No, 19, herein described;

Thence turning and ruming in a Southerly, Northeasterly and Southea.sterly direction along the shore of said Lake Kanasatka to an iron pin located at the Southeasterly corner of Lot No, 1 9, herein described and the Southrvesterly corner of Lot No. 20;

Thence tuming and running on a course of North Thirty-six Degrees, Zero Minutes, Zero Seconds Elll $ 360 00' 00" E)ãlong the Northweste¡ly edge of Lot No. 20, a distarrce of Two Hundred Fifteen Feet (215')' more or lcss, to an ironpin located at the Southwestcrly edge ofthe culd-de-sac or turn-around ofsaid Kilnwood Terrace, at thì Northeasterly corner of Lot No. I 9, herein described, and the Northwasterly corner of Lot.No. 20;

The¡ce turning and rumìng along the Southwesterly edge of said culd-de-sac in a Northweslerly direction on a radius of fifiy Feet (50') a distance of Forty-tluee and Sixty-tluee Hundredths Fect (43.63') to a point;

Thence continuing on said edge ofsaid turn-around or culd-de-sac on a radius ofTwenty Feet (20') a distance of Seventeen and Forty-six Hundredths Feet (17.46') to a poitlt;

Thence continuing on the Southerly edge of said Kitnwood Teruace on f Dogrees, Zero Mirrutes, Zero Seconds We st (N 540 00' 00" W) a distance of One Hundredths Feet (140,00') to the point of beginning, Lot No, 19 is rese and enjoyment of Unit No, I 9, subject to the other provisions of this Declaration. s) LOT NO, 20: Beginning at an iron pin Iocated on the Southwesterly edge of thc culd-de-sac or tum-around located at the Southeasterly end of Kilnwood Ter¡ace, so+alled, at the Northeaslerly comer of Lot No. 19 and the Northwesterly comer of Lol No. 20, herein described;

Page25

KILN000099 :iI

(S 00'00u Thence running on a course of South Thirty-six Degrees, Zero Minutes, Zero Seconds Vfest 360 g (215'), more or less, W) along the Sãutheasterly edge of Lot No. I u dilun." of Two Hundred Fifteen Feel 19 and the to an iron pin located on tire shlore of Lake Kanasatka at the Southeasterly comer of Lot No. Soulhwesterly corner ofLot No, 20, herein described,

the sho¡e of Thence turning and running in a Southeasterl¡ Northeasterly and Southeasterly direction along dæcribed, said Lake Kanasatka to an ion pin located atile Southeasteily corner of said Lot No. 20, hercin Hilton; the shore of Lake Kanasatka anã the Northwcsterly edge of land now or formerly of one

Thence tuming and running on a course ofNorth fifty-three Degrees, Thirty'sevcn Minutes, Forty-fìve (28o'),-more Seconds gast Ñ fio 3i'41, E) along saicl Hilton land a distance of Two Hundred Eighty Feet or less, to an iion pin located at the Northeasterly conier oflot No. 20, herein described, ths Southerly cornet of Colnrnon Area No. 6 and said edge of said Hilton Land;

Wcst (N Thence tuming and running on â course of North Fifty-four Degrees, Zero Minu,tes, Zero Seçonds Twenty- 540 00, 00u WJalong a Sou-thwestcrly edge of Common Arca No, 6 a distance of One Hundred nine and Eighty-foui Hundredttrs neåt qtã0,S4') to the Southeasterly edge of said culd-de-sac of said Kilnwood Temace and a corner of Conrmon Area No. ó;

f said 'fhence turnirrg and ruming in a Southwesterl¡ V/esterly and Northwesterly di culd-de-sac at a radjus ofFifiy Peet (50') a distance of Seventy-eight and F.ifty- I No' (78,54') to the point of beginning. Lot Ño, 20 is reserved for ihe exclusive use 2, subject to the otherplrvisions ofthis Declaration,

so-called, at LOT NO. 21 : Beginning al an iron pin locatcd on the Northeasterly edge of Kilnwood Teüace, th" South*.rt"rly cornJr of Lot ¡lo. ZZ and the Northwesferly corner of Lot No' 21, herein described;

(N 00' 00" Thonce running on a course of North Thirty-six l)egrees, Zero Minutes, Zero Seconds East 360 E) along the So-utherly edge of Lot No. 22 ä distanci of One Hundred Seventy-seven and Ninety'six 6, the Hundreãths f eet (lli.96'i to an iron pin located on tfie Wcsterly edge of Common Area No, Southeasterly corner of Lot N o.22 and the Northeasterly comer of Lot No, 21, herein described;

four Thence turning and nrnning on a course ofSouth d.*Jr E;; (s 4/ ii z.cr r¡along the westerl Hundred Eíghry-four ao¡ Fourteen Hund¡edù's Feet (284,14') r ea No' 6 at the Southeasterly comer of Lot No. 21, herein described;

Thence tuming and running on a course of South Seventy-two f)egrees, Forty-rrine Minutes, Thirty-nine and S"""rO- Wæif S iZo +S' 3i' Vil) along Common A¡ea Nã. ó a dishnce of One Hundred Thirty-five end Sixteen Hundredths Feet (135.16') to t-he Easterly edge of culd-de-sac located at the Southerly of Kilnwood Terrace, so-called;

on a Thence running along said Easterly side ofsaid culd-de-sac in a Northerþ and Northrvesterly direction point; raclius of Fifty feet (iO) a distancá of Seventy-five and Seventy-six Hundredlhs Feet (75"16') to a

Page 26

KILN000100 * Ë I 'Ì

Thence continuing along said edge of said culd-de-sac in a Nofhwesterly direction on a radius of Twenty Feet (20') a distance ofseventeen and Forty-six Hundredths Feet (17.46') to a point;

Thence continuing on the Easterly edge ofsaid Kilnwood Terrace ees' Zero Minutes, Zeio Seconds West (N 540 00'00" W) a dislance of Hundredths Feet(l14.20') to úe point of beginning. LotNo. 21 is en¡joynrent of Unit No. 21, subject to the other provisions of this Declaration.

u) LOT.NO. 22: Begínning on the Easterly edge of Kilnwood Tenace, so-called, at thc Northwesterly comer of Lot No, 21 and thc Southwesterly corner of Lot No.22, herein described;

Thence running on a course of North Thirry-six Dogrees, Zero Minutes, Zero Seconds East (N 360 00'00" E) along the Nórtherly edgc of Lot No. 2l a distance ol One Hundred Seventy-seven and Ninery-six Hundreãths neet (lZ7,SO'ito an iron pin located on the Westerly edge of Common Area No. 6, at tl¡e lrr'ortheasterly corner of Lot No. 2 I , aìd at fhe Southeasterly oorner of Lot No, 22, hercin described;

Thence turning and running on a course of North Forty-tkee Degrees, Thirty Minutes, Four Seconds West (N 43c 30' 04'¡'rV) along thã Westerly edge of Comrnon tuea No. 6 a distance of Two Hundred Ninety-six at and Sixty-six Hundredths Fe er (296.66') lo an iron pin located on the Southerly edge of Brick Kiln Road, the Northeastedy comer of Lot No. 22, herein described;

Thcnce tuming and running along the Southerly edg ofSouth Sjx Degrees, Zero Minutes, Zero Seconds WesL (S 060 6 Ten and and Kìlnwood Scvcnteen Hundtedths Feet (2 I 0, I 7') to a point loca ad Tenace so-called;

Theuce tuming and runoing in a Southerly and Southeasterly direction on a radius of One Hundred Feet (100') a disranãe of One Hùndretl Four and Seventy-two Hundredths Feet (104.72') to a point looated on the Easterly edge of said Kilnwood Terrace;

Thence turning and running along said Easterly edge of said Kilnwood Tenace on a course of South Fifty- (100') to four Degrees, Zero Milurcã, Zerã Seconds fait (s-S+o 00' 00" E) a distance of onc Hundred Feet the poini of begin¡ing. Lot No. 22 is reserved for the exclusive use and enjoyment of Unit No. 22, subject to the other provisions of this Declaration.

'Westerly v) LOT NO. 23: Beginning at an iron pin located on the edge of Brick Kiln Road, so'called, at the Worth.astedy .omer oflot No, 24 and the Southeasterly comer of Lot No. 23, herein described;

(S 0?' Thence running on a course of South Forty DÊgrees, Seven Minutes, Fifty-eight Seconds West 400 58' W) along the Northerly edge of Lot No. 24 a distance of One tlundred Nitrety-one and Sixty-seven Hundredths Éeet (191.6?') to aã iron pin located along the Eastcrly cdge of Common Atea No. 6, at the Northwesterly corne¡ of Lot No. 24, ànd at the Southwesterly conter of Lot No , Z3,heteín described; lVest Thence turning and running on a courso of North Forty-tÏree Degreæ, ThiÉy Minutes, Þ-our Seconds (N 430 30' 04'¡W) along tbã Easterly edge of Common Area No. 6 a distance of Two Hundred Eighty-six and Sixty-two Hundredihs Veet (256.62\ to an iron pin located on the Easterly edge of said Brick Kiln Roadl

Page 2'l

KILN000101 Thence turning and running along said edge of said Brick Kiln Road in a Northerly, Eastefly snd Southeasterlyãirection onã radius of One Hundred Feet (100') a distance of Two Hundred Fourteen and Seventy-rrine Hundredths Feel(214J9) to a point;

Thence nrrning and running along the Westerly edge of sairl Brick Kiln Road on a course of South Fifty Degrees, Fifty"s¡* MinuteiFive"Seconds Easí(S í00 56' 05" E) a distance of Two Hundred Tkee and Niriety-eight i{undredths Feer (203.9S) to the pàint of bèginning. Lot No. 23 is resewed for fhe exclusirc use and enjoynrent of Unity No. 23, subject to the other provisions ofthis Declaration,

w) LOT NO. 24: Beginning at an iron pin located on the Vy'este.rly edge of Brick Kiln Road, so-called, at the Southeasterly corner of Lot No. 23 and the Noflheasterly come r of Lot No. 24, herein described;

Thence running along the Westerly edge of said Road in a Southeasterly anrl Easterly dire clion on a radius of Fou¡ Hundrãd neei (+oO') a distance of One Hundred Sixty-three and Forty Ilundredths Feet (l ó3.40') to a point;

Therrce following rlle sanle edge of said Road on a course of South Seventy-four Degrees, Twenty Minutes, (S of One Húnd¡ed Fifty Feet ( t 50') to an iron pin Twenty,six Seconds East 740 20' 26" E) a disrance _ located on the same edge of said Road at a comer bouncling Comtuon Area No. 6 and the Southeasterly comer of Lot No. 24, here in desc¡ibed;

Thence turning and ruming on a coùrse of Soutli FofyDegrees, Seven Minutes, Fifty-eight Seconds Þ'est (S 400 07' 58"þ alorrg u,i.dg, of Comrnon Area No. 6 aãisiance of One Hundred Eìghty{wo and Thirty' six Hundredths Feet (lã2.3ó') to an iron pin located on an edge of Common A¡ea No. 6 and at the Southwesterly comer of Lol No. 24, herein described;

Thance turning and ruming on a course of North Sixty-nine Degrees, Fifty-trvo Minuteé, Eighteen Seconds West (N 690 5t' 18" W) along the Easterly edge of Common Area No. 6 a distance of Tlree Ilundred Thirteen and Seventy-one Hundredths Feet (313.?l') to an iron pin located at the edge of said Common Area No. 6, at the Southwesterly comer of Lot No. 23, and at ¡he Northwesterly corner of Lot No, 24, lrerein described;

Thence tuming and running on a course of Nolh Forty Degrees, Seven MinuLes, Fifry-eight Seconds East (N 400 07' 58';E) along the Southerly edge of Lot No, 23 a distance of One Hundred Nincty-one and Sixty- seven Hundredths Feei(191.67') to the póint ofbeginning. Lot No. 24 is ¡eserved for the exclusive use and enjoyment of Unit No. 24, subject to the o[her provisions of this Declaration. x) LOT NO. 25; Beginning at arr ìron pin located on the Easterly edge of Brick Kiln Road, so-called, at the Soutliwesterþ comer of Lot No, 26 and at the Northwesterly corner of Lot No. 25, herein described;

Thenoe running olì a course of North Forty-nine Degrees, I;ourteen Miuutes, Twenty-seven Seconds East (N 490 14' 27" E) alongthe Southerlyedge ofLotNo.26 a distance ofSeventy-six anrlTwenty-four Hundredths Feet(16,24') to a point;

Thence tuming and ruflning on a course of North Fifty-three Degrees, Thirty-seven Minutes, Forty-five Seconds East fo 530 37'4i' E) along the Southerly boundary oflot No.26 a distance ofOne Hundred Sixty-rrine and Forty-two Hundredths FeeT (169.42')

Page 28

KILN000102 1:

to an iron pin located at the lüesterly edge of Red Hill Road, so-called, at the Southeasterþ comer of Lot No. 26 and at the Northeasterly corner of Lot No. 25, here in described;

Thence turning and running along the Weslerly edge of said Red Hill Road on a course of South Forty-two Degrees, Forty-two Minutas, Thírty-six Seconds East (S 420 42'3ó" E) a distance of One Hundred FiIly- one ancl Ninety-eight Hundredths Feet (151.98') to an iron pín located on the same edge of said road, at the Northeasterly corner of Connron Area No. 7, and at the Southeasterly comer of LotNo. 25, hereirt described;

Thence turaing and running in a Southwesterly direction along the Northerly edge of Common A¡ea No' 7 a distance ofOne Hundred Forty-eight and Eighty-eight Hundredths Feet (148.88) to an iron pin located on the Eastedy edge of said Briok Kiln Road, at the Northwesterly corner of Common Area No. 7 and the Southwesterly comer of Lo1 No. 25, herein described;

Thence turning and running along the Easterly edge of said Brick Kiln Road in a Northwesterly direction a distance of Eighty-flour ancl Twenty-one Hundredths Feet (84.21') to a point;

Thence confinuing along the sarne edge of said Road on a course ofNorth Seventy-four Degrees, Twenty Mínutes, Twenty-six Seionds East (N 740 20' 26" E) a distance of One Hundred Fee t (100') to the point of beginning. Lot No. 25 is reserved for the exclusive use and enjoyrnent of Unit No. 25, subject to lhe other provisions of this Declaration. y) LOT NO. 26: Begiruring at an iron pin located on the Eastedy edge of Brick Kiln Road, so-called, at the Southwester:lycomerofLotNo,2g,andattheNorthwesterlycomeroflotNo 2ó,hereindescribed;

Thence rutrning on a oourse of North Fifly-three Degrees, Thìrty-seven Minutes, Forty-five Seconds East (N 530 37'45" E) a distance ofOne Hundred Thirty-three and Seventy Hundredths Feet (133.70') and a further distance of One Hun

Thence turning and runnìng along the Westedy edge of said Red Hill Road on a course of South Forty-fout f)egrees, Six Minutes, Fony-one Seconds East (S 440 06'4l"E) a distance ofOne Hundred Fifty-five and Eighty-one Hundredths Feet (155,81') to an i¡on pin looated at the same edge ofsaid road, at the Northwesterly corner of Lot No. 25 and at the Southeasterly corner of Lot No, 26, herein de.scribed;

Thence hrrning and runnirg on a course of South Fifty-three Degrees, Thirty-seven Minutes, Forty-five Seconds West (S 530 37' 45" W) along the Nortlrerly edge of said Lot No. 25 a distance of One Hundred Sixty-nine ancl Forty-two Hund¡edths FeeT(769.42') to a point;

Thence running a course of South Forly-nine Degrees, Fourteen Minutes, Twenty-seven Seconds West (S 490 14'27" W) ancl continuing along the Northerly t dge of said Lot No. 25 a distanco of Seventy-six and Twcnty-four Hundredtlrs Feet (76.24') to an iron pin located on the Eastedy edge of saíd Brick Kiln Road, ât the Northwesterly corner of LÆt No. 25 and at the Southwesterly corner of Lot No. 26, herein descríberl;

Thence turning and runnirrg along the Easterly edge of said Brick Kiln Road in a Northwesterly direction on a radius of

Page 29

KILN000103 E Ë 5 :

Th¡ee Hurrdred Fifty Feet (350) a distance of One Hundred Forty-two and Ninety-eíght Hundredths Feet (142.98'l to a point;

Thence continuing on fhe same edge of said Road on a cource ofNorth Fífty Degrees, Fifty-six Minutes, Five Scconds West (N 50 5ó' 05" W) a distunæ of Thirty+tree and Nínety-nine Hundredtlu Feet (33.99') to the point of beginnhrg, Lot No, 26 is rescrved for the exclusive use and enjoyment of Unit No, 26, subject to the other provision of thís Declaration.

z) LOT NO, 27; Beginning at an iron pin located on the Westerly edge of Red Hill Road, so-calied, at tlre northeasterly comer of Lot N0. 26 ãnd at the soutlleasterly corner oI Lot No. 27, herein described;

Thence running afong the Northerly edge of Lol No, 26 on a course of South Pifty-tlrree Degrees, Thirty' seven Minutes, Forth-fïve SecondsWeit (S 53 31' 45" W) a distance of One Hundred Sixty-two and Thirteen Hundreds Feet (162,13') to an iron pin located on thc Northerly edge of Lot No. 26, at lhe Southeasterly corner of Lot N o.29, and at the Southwesterly corner of Lot No, 27 herci¡ described;

Thence tuming and running ou a course of North Forty-one degrces Seconds West (N 41 26' 25" SI¡ along the Easterly edge of Lot No, fìve and twelve Hundredths Feet (155.12') and a further distance of s Feet (62.63') to an iron pin located on tJre Easterly edgo of Lot No .29, at lhe Southwesterly comer of Lot no. 28 and at he Northwesterly corner of Lot No. 27,hercin described;

Thence turning and running along the Southerly edge of Lot N, 26 on a course of North Fifty-three Degrees, Fifty-six Minutes, Founy-fow Seconds East (N 53 56' 44" E) a distance of One Hundred Sixty- th¡ee and Twooty-seven Hundredths Feet (163.27') to an iron pin located in a stone 'wall, at the Westetly edge of said Red Hill Road, at the Southeasterly comer of Lot No. 28 and at the Northeasterly comer of Lot No. 27, herein desctibecl;

Thence tuming and running along the same edge of said Red Hill Road on a course of South Thirty-seven Degreas, Seventeen Minutes, Thirty-three Seconds East (S 37 l?' 33") a dislance of Sixty-two and Forty- eight llundredths Feet (62.48') to a point in said stone wall;

Thence continuing along the same edge of said Red H ill Road on a course of South Forty{wo Degrees' Forty-three Minutes Five Seconds East (S 42 43" 05' E) and following a portion of said stone wall a distance of One Hundred Fífly-frve and Forty-six Hundredths Feet (155.46') to the point of beginning. Lot No. 2? is reserved excìusively for the use anâ enjoyment of Unit No. 2?, subjeoL to the other provisions of this declaration, aa) LOT NO. 28: Beginning at an íron pin located on the lVeslerly edge of Red Hill Road, so-called, at the Noñheasterly comer of Lot No, 2? and at thc Southcasterly corner of Lot No, 28, herein described;

Thence running along the Northerly edge of Lot No, 27 o¡acourse of Soutlt Fifty-tkee Degrees, Fifty-six Minutcs, Forty-four Seconds West (S 530 56' 44" W) a disfance of One Hundred Sixty-three and Twenty- sevenHundredths Feet (163.27') toanironpin located on theEasterlyedgeof LotNo.29; atthe Northwesterly corner of Lot N o. 27 andat the Southwesterly comer of Lot No. 28, herein describedl

Page 30

KILN000104 È

Thence Turing and running along the Easierly edge of l¡t No. 29 and ¡he Easterly edge of Lot No, 30 otl a course of Nofh Forty-seven Degrees, Forty-three Minutes, Fifty-one Seconds \rVest (N 4'7 43' 51" W) a. distance of Eighcy-six and Thirt!-eight Hundredths Feet (8ó,38;) and a fufher distance of One Hundred Thirty-two and Sixty Hundredrhs Feet (132.60') to an iron pin located on the Southerly edge of Common Area No. 4, at a comer of Lot No. 30 and at the Northwestorly comer lotNo, 28, horein described;

Thence tuming and nrnning along a Southerty e

edge ofsaid Road on a course ofSouth Thirty-one Degrees' t (S 3 10 26' 46" E) a distance ofone Ilundred Thitty and Forty- eight Hundredths Feot (130.48') to a point in said stone wall;

Thence continuing along the satne edge ofsaid Road on a course , Fifty-seven Minutes, Forry-foúr Seconds East (S 3 l0 5?' 44- E) a distance of Hundredths Feet (85.85') io the point of beginning. Lot No.28 is ¡eserved for nent of Unit No. 28, subject to the other provision of this declaration. bb) LOT NO.29: Beginning at an iron pin located on the easterly edge of Brick Kiln Road, so-called , at the Northeasterly corner of lot ¡o,26 and the Southeasterly corner ofLot No, 29, hcrcin describedi

Thence rururing along the same edge of said Road ou a course of North Fifty Degrees, Fifty"six minutes, Five Seconds West (N 50 5ó'05" W) a distance of One lfundred Sixty-nine and Nincty-eight Hundredfhs Feet (169,98') to a point;

Thence continuing along the same edge of said Road along One Hundred Fifty Foot ( 1 50') radius in a Northwesterly and Westerly direction a distance of Forty.four and Seventy Hundredths Feef (44.70') to an iron pin located at the edge ofsaid road, at a Southeasterly corner oflot No. 30 and at tho Southwestcrly comer of Lot No, 29, hcrein described;

Thence tumiug and running on a course of North Twenty-one Degree s, Fifty-nine Minutes, Twenty-nine Seconds East (lrl 21 59' 29" E) along the Easterly edge of Lot No. 30 a distance of One Hundred Eighty- fìve and Eight Hundredths Feef (185.08') to aû iron pin located at the Easterly corne¡ of Lot No. 30, at the Northwesterly comer of Lot No. 29, herein descrjbed, and at the Westerly edge of Lot No. 28;

Thence luming and running along the lVesterly edge of Lot No. 28 on a course of South Forty-seven Degrees, Forty-thee Minutes, Fifty-oue Seconds East (S 4?0 43' 51" E) a dístance of Eighty-six and 'l-hirty-eight Hundredths Feet (86.38') to an iron pin located at the Southwesterly corner of Lot No- 28 and Northwesterly comer of Lot No. 27;

Thence tuming and running along the westefly edge of Lot No. 27 on a course of South Forty'one Degrees, Twent¡six Minutes, Twenty-hve Seconds East (S 410 26' 25" E) a distance olsixty-tluee and Sixty-two llundredths Feet (63,62') and a further distance of One Hundred Fifty-five and Twelve Hundredths Feet (155.12') to an iron pin located on the Northerly edge

Page 3l

KILN000105 I IË T

ofLotNO.26,atlhasoutliwesterlycornerofLotNo.2T,andattheNortheasterlycorneroflotNo, 29, herein described;

Thence tuming and running along the Northerly edge of said Lot No. 26 on a course of South Fifty'tlree Degrees, Thirty-seven Minuets, Forty-five Seconds West (S fio 31' 35" \il) a distance of One Hundred Thirty-tluee and Seventy Hundredths Feet (133,70') to lhe point of beginning, Lot No. 29 is reserved for the exclusive. use and enjoyment of Unit No, 29, subject to the other provisions of this Declaration,

cc LOT NO. 30: Beginning at an iron pin located on the Northerly edge of Brick Kiln Road, so-called, aL the Sourhwesterly corner of Lot No. 30, herein described, and at ân Easterly corner of Cornmon A¡ea No.

Thence runníng along an edge of Common Alea No. 4 on a course of North Eleven Degrees, Ten Minutes, Thirty six Seconds West (N I l0 l0' 36" W) distance of One Hundred Seventy-four and Ninety-eight Hundredths Feet (174.98') to an iron pin located at a Southerly edge of Common Area No. 4;

t Thence turning and running on a course of North Fifty+hree Degrees, Thirty-sevcn Minutes Forty-fìve Seconds East (N $0 37' 45" E) along an edge of common Area No, 4 a dislânce of Two Hundred I.velve and Twenty-eight Hundredths Fcet (212.28') to an i¡on pin located at the Northlvestedy corner of Lot NO. 28l

Thence tuming and running along the Westerly edge of Lot No. 28 on a counìe of South Forty-seven degrees, Forty-three Minutes, Fifty-one Seconds East (S 470 43' 5l" E) a distance of One Hundred Thirty- two and Sixty hundredths Feet (132,60') to an iron pin located at the Nolhwesterly corner of Lot No. 29, and on the Weste¡ly edge of Lot No. 28;

Thence turning and nrnning on a course of South Twenty-one Degrees, Fifty-rrine Minutes, Twent¡nine Seconds West (S 2f 59' 29" W) a distance of One l:lundred Eighty-five and Eight Hundredths Feet (185.08') to an iron pin l ocated on the Northerly edge of saicl Brick Kiln Road, at the Southwesterly comer ofLol No. 29;

Thetrce tuming, and running alolg the Nortfierly edge of said Brick Kiln road in a Northwesterly, Westerly a d Southwesteily dìrection on a radius of One Hund¡ed Fifty Feet (150') a distance of One Hundred Eighty and Fifty-five Hundredths Feet (180.55') to the poìnt of begimring. Lot No. 30 is reserved for the exclusive use and enjoymcnt of Unit No, 30, subject to the ofher provisions of this Declaratlon,

9.) EASEMENTS AND RIGHTS.OF-WAY FOR IIMITED COMMON AREAS Iþts)

Each lot shall be subject to.the fotlou'ing eas;emerrts and righs-of-way:

a) The right to construct, install, maintain, repair, replace and reconstruct lines, pipes, systems or conlponents of same for water, sewer, electricity, telephone and drainage for the benefil of the lot in question, for the benefit of neighboring lots, for the benefit of any other lofs in the condomírtium and for the benefit of any comrnon area or ar€as, comtnon element or elements.

b) Such construction, installalion otsuch facílities and the otlrer rights as more cornpletely defincd in paragraph (a) rnay be located in one or lnore lots (limited common areas) and encroach and overlap lot lines, but if roasonably possible

Page 32

KILN000106 shall be locatcd, to the extent feasible, within the bounds of the lot thal is benefited.

c) Such rights ofconstruction ås more complotely defined inparagraphs (a) and (b) are sudect to the lot being returnecl to its original state, including lhe replacement ofgrass sod, rvhere applicable at the expense of the person who acts under authority of these easements.

d) All such riglrts enurnerated in Paragraphs (a) and (b) shall, to the greatest extent possible, be located beneath the zurface of the ground,

e) No rights authorized under these Easomcnts shatl be exercised without the éxpress written 'authorízation of the Development Comtnittee, hereinaftcr ónuiirerated.

fl Each lot (Limited Common Area) shall be subject to a right-of-way above the surface of the ground and an Easement below the surface ofthe ground, at the following locations and for the following purposes:

l) On each lot (Limited Common Area) boundary line for a width of ltve (5) feet.

2) On each lor (Limiterl Common Area) boundary line that bounds with the shorelins of Lake Kanasatka, for a width of five (5) feet.

3) For the purpose, above ground, ofwalking or bicycling from place to p1ace.

4) For the purpose, below ground, ofexercising any right set forth in Paragraphs (a) and ft) of these Easements and Rights-of-way.

10.) covENANTS. RESTRTCTIONS AND EASEMENTS FOR LrMrrEp COMMONAREAS UNITS ^ND a.) RESIDENI]AL

Each iol laid out in the above mentioned Plan shall be used for residential purposes only, and no portion ol the land and buildings thereon shall be used in the exerçise of any trade, business or profession whatsoever, except tbat a portion of a dwell ing may be incidentally used as office space, provided, however, that the Developer, The Thomson Company, Inc,, shall not be bound by this provisions during the development of this Condominium. b.) 29 UNrrS

This Condominiunr Development is timited to twenty-nine (29), Lirnitcd, Common Areas and units. o.) OTHËR I'R^C]S

No addition tracts of tand shall be added to this Condominium Deve[opräent, nór shall any rights of the Common .Areas, EleÍtents or Facilities be granted to any other person except to persÓns who have right, title and interesi to the cônd.ominium units or their heirs, Successors or assigns,

Pagc 33

KILN000107 E

E f

d.) -DËyELOPMET\ff .COMMTITEE

The¡e shall be a Development Committee consisting of tluee (3) persons to be appointed by the Developer. Each ofsaid persons so appointed shall be subject to removal at the direction ofthe Developer at any time and ltom a time to time, At such time as the Developer divests himself of all real property interest the owners of a majority in number of the unils in said real property shall havc the rightby writtcn document to appoint the members of said Committee or to frll any vacancies therein.

e) POWERS

The improvement of each limited common a¡ea frorn its nalural state shall be govemed and supervised by said Development Comnrittee. Said Committee shall have the responsibility and power to review and approve all manner of construction, alteration or modifioation of the limited common area of any ownor and the nature, mode ofconstruction, location, ofany unit or building to be placed on said arça. No owner o¡ his representative shall alter io aoy manner said area nor erecE construct, alter, nor move any building or any part thereof withoul frst submitting written plans in detail to said Committee and receiving total witten approval of said plans by said Conrmittee,

ROUGH PLANS

The Comnritlee fiay return the plans if not in sufficient detail.

Owners or others consídering the purchase of a lot may submit rough plans in order to get the Developrnent Committcç's op¡nion as to the likelihood of approval of more detailed plans. Such rough plans shall be deemed to be approved in concept ifno written approval or disapproval has been given wilhin thirty (30) days of the receipt by the Development Committee of such plans. c) rP¿CIEIÇ4IIQNS

Plans submitted shall desc¡ibe in detail the proposed cornplete building construction and specifications, íncluding, but not limited to fhe proposed exte¡ior finish, design and color scheme, the proposed type of structure, the proposed placing and position of the building on the Limited Common Area, the proposed building elcvation, a¡rd the number ofbedrooms, Said plans shall also describe in detail the proposed grading of the Limited Common Area, the finished design and layout of the Limited Common Area showing all natural vegotation and all lot improvemcnts, the proposed sewage disposal system, the location, naturc and cxtent of all underground improvements, including utilitics the proposed cuttiflg of any and all trees or other abovo a¡ound vegetation, the dinensions ofsuitable front, ¡ear and side yards, No buildíng shall be used for any purpose other than as a siugle family dwelling, not to exceed two stories and a two-oar garage. h) EXÏ'EzuOR DESICN

No alteration shall be made in the exterior design or color of any structure unless such alteration, including any addition, sball have first been approved in writing by the Development Committee,

Page 34

KILN000108 rJ SURFACE WATER The location ofsurface watel'courses at the present location where said courses enter into Lake Kanasatka shall not be relocated. The Development Commjttee may grant written approval to relocats surface water courses in its discretion over colnmon areas or limited common areas which are not adjacent to the shoreline, but said Commiltee shall not grant written approval to relocate said courses at tlre point of entry ínto said Lake.

i) COMMONAREAS. Easernents for the benefit of one or niore lirnited common areas into common areas for the purposes of instalting sewage systems within said common are as benefiting one or more individual units upon said limited commou area may be permitted wíthin the discretion olthe Devcloptnont Committee and shallbe grantcd ìn wr.iting where such casements are determined by said Committee to be necessary and desirable in order to sçcure thc appToval of the Water Supply and Pollution Control Commission of the State ofNow Hampshl're, or any other governmental board, agency or subdivision, with respect to said sewage systems, The applicant for any such easelnents shall be responsible fo¡ ¡eturning any comnlon areas to its original state, including thc replacenrent of grass sod, where applicable, at the applicaÍt's own expense,

k) NO TREES CUT No treçs wjth a diameter of more than six (6) inches (measured three (3) fcet above thc ground) may bo out exc€pt lo construct structures or access facilities, unless othenvisc approved by the Development Cornmittee,

¡) NO SICN, No sign or any kind or for any use or purposes wlratsoever shall be erected, posted, pasted, painted or displayed upon any of said tots or upon any buitding or other structure thereon without the prior written permission of the Development Comrnittee, except the owrers name on the indjvidual lot'

m) NOT SUB.DIVIDED Lots shall not be sub-divided and resold, Ho'yever, more than one lot may be purchased for the erection or construction of a single family dwelling and private garage, w,.ilhout regard to the common boundary of the lots purchased as laid out; provided, however, said single family dwelling and private garage does not interfere or obstruct any lot boundary line easement. Abutting owners may purcltase a vacant lot betrveen theln; but in such instance no building or structure shall be erected, altered, placed or permitted to remain upcrn either portion of the divided vacant lot.

n) occuPANcY - s_rå¡d.o. xIEs All buildings, structures and site wo¡k shall be completed and rcady for occupancy insofar as the extcrior portion is concemed within six (6) months from thc commcncenlent of the excavation or erection ofany portion ofsaid buildings or structures, All exterior construction ofany structure shall be completed witbin six (ó) months of oommoncernent of excavation o) DqçKq No additional individual piers or boat docks sl¡all be constructed into Lake Kanasatka from waterfron[ ]ots. No boats shall be docked on the sho¡e of wa(erft ont lots,

Page 35

KILN000109 ¡ ç E

p) PIERS The docking systern shall be limired to tluee, (3) Thirty (30) Foot furger piers protnrding from the exisiing dock platform facility

q) DOCKS USE The docking facility is restricted to useby iot rnore than sixteen (16) motor boals'

r) MOORINGS No moorings shall be placed in the water for power rrotor craft,

s) UNPOWE&ED CRAFT Moorings shall be permilted to be placed in the water for unpoweted water craft'

Ð FILL, DREDCINS No area of shoreline appurlcnênt to any common area or limited common area shall be filled or dredged. No wetland atea on Lot No. 6 o¡ Lot No. l0 shall be filled.

u) ONEBEACH - No beach facility or dock facility shall be corut¡uctert or maintained except the beach faciliry as presently constructed and locate

v) RÁFTS No more than,one (l) swirnming rafï shall be placed inio the water of Lake Kanasatka'

w) B_9_ATS

All powerboats shall be kept at the cæmnrunity docking facility.

x) I.,AIINCHINC No motor boats shall be taunched from any area, cofümoÍ area or limited cómmon area within the Condominiurn.

y) MARINA No operation of any cornmercial gasoiine or marina facility for porverboats shall be permitted,

z) SEWAGE SYSTEI4S - LA.WS Design and constructron of all sewage disposal systenrs shall compty rvith all applicabte stâte and local laws and rogulations. Construction of such systems shall nol comnrence until all applicable pemrits have bcen obtained. aa) SEWAAE EXI-ENSES The financial responsíbility for each individual unit sewage systern shall be borne buy' the individual uniI owners. bb) GÄRBAGE No chemical closets shall bc uscd, No garbage or othe¡ waste moterial shall be thrown onto the land,

Page 36

KILN000110 3 E E E F

co) RTJBBISH LAWN Any lot herein conveyed shall be kept fiee ofrubbish, and larvns, ifany, shall be mowed at least once a month during the summsr months,

dd) No TAR PAPER No buildings or stnrctures upon the property shall be covered with ta¡red paper or sheathing paper, or any other temporary wall covering; all chimne,vs intended for live frres shall have their flues lined through their entire height with standard clay lining, and shall be capped with spark arresting screens,

ee) NO rI-OXIOUS OR OFFENSIVE No irnproper, noxious, immoral, offensive or unlawful activity shall be canied on upon the proporty nor any parl thereof, nor shall anything be done tlrereol whioh may be or become an annoyance or nuisance to the neighborhood.

fÐ NOTEMPORARY STRUCTURES No tcnt, shack, trailer, basement, garage or outbuilding shall at any time be used ofl afly lot as a residence, either temporarily or pcnnanently; nor shall any residence of a temporary character be constructed, placed or erected on any lot.

gg) N0 FARM ANIMALS So-called "fa¡rn animals" shall not be kept or allowed to be kept on any ofsaid lots.

hh) RUN WrTH LAND ' These covenants and restrictiolrs are to run with the land and slratl be bindìng on all parties and all persons clairníng under them.

iÐ coURTPROCEEpTNGS The said graÍtees, their heirs, administrators and assigns shatl have the light to restrain thrcrtgh Court proceidings irny infracfiôn or threateierl infraction of any of the above restrictions, arld shall, at th¿ii optior¡, have the right to recover damages through Court proceedings for any such infraction. jj) rNVALrpATroN Invalidation of any of these resfrictions by judgnent or Court order shail not effect any of the other ¡estrictions which shall remain in fi:ll force and effèct. kÐ IVTODIFY The grantor ol seller, whíchever term may be applicable, reserve the right to himself and to his successors to change or modify any of tlte above restrictions in the event such is necessary for the proper development of the enlire ttact, sucll amendment or change may not, hourever, be made in an arbitrary rnaûner or one calcuiated to damage or dinrinish the rights of existing unit owners or purchasers' lD MOULTONBORO In addition to the above, no uses, which are not in accordanoe with the Moultonboro Zoning Laws shall be pernritted insofar as thoy are applicable to thc land hereinl sold or conveyed. All laws and regulafion ofall governmental bodies havingjurisdiction shall bc observed.

P¿Ee 31

KILN000111 mm) REGULATIONS Regulations conceming use of tbe property may be promulgated by the Associalion provided in the Declaration and By-Laws, provided, however, that copies ofsuch regulations are frlrnished to each unit ownerprior to the time that the same become effective. The initial regulatiols, which shall be deemed effective until amended by the Association are recorded in the Carroll County Registry of Deeds' Any amendrnent to the Regulations shall also be recorded in the Carroll County Registry of Deeds,

nn) UNTTS There shall be twenty-nine units in this condominium. The nnnrber of units shall correspond with ths same number of each limited comtnon are a. (Each of said units respectively being incorporated within and serving each rospective limited common area as defined in paragaph No. 5b, ll.)

The description of the Common Elements is as follows:

a) The docking facility or dock pt'eseutly located upon the premises on Comrnon Area No. 1, togetlier rvith the tluee (3) finger piers to be attached to said dock, eaoh pier boing of a length of Thirtv (30) Feet.

b) The bath house, inoluding thc lavatories and toilet facilities, as presently located and constructcd upon Common Area No. l, including all utilities and pipes connected to said bath house, but not limited to the water lines and components and eleclrical lines and components and the sewage system appurtenânt thereto.

c) The beach facilities and location as presently cons[ructed and located upon Common A¡ea No. L

d) The roads located within said condominium, togethef with any ínrprovements above the surface ofthe ground and below the surface ofthe ground as follows:

Hombeanr Hollow: Kilnwood Landiog;Brick Kiln Road, and Kilnwood Terrace. Reference is made to the Revisecl Plan - entitled'1(ilnwood on Kanasatka, a Condorniniunr Developmenl for The Thomson Company, Inc., Moultonboro, New Hampshire, dated November 3, 1970, Lakes Region Survey Service, Inc,", recorded in tl¡e Carroll County Registry of Deeds' at Plan Book 24, Page 3, for a more complete descrþtion and location within said Condominium Development'

e) The communify water system, including, but not limited to, fhe Reservoir, piping and all componcnts thoreof installcd or to bc installed upon the premises traveling over o¡ under the Common A¡eas of this Condominium, and over and under the limited oommon areas of this condominium, provided, however, that the responsibility and maintenance of the same upon or under the limited common a¡eas shall be the responsibility and expense of the unit, owner of each limited common area.

f; The electrical lines, including but not limited to, all piping and components installed or to be installed upon the premises traveling over and under the common areas of this condominium and over and under the limited co¡nmon areas of this condominium provided, howeve¡ that the responsibility for maíntenance of the same upon or under the timited comnron areas shall be the responsibility and the expense of fhe unit owner of each limited conrmon area.

Page 38

KILN000112 g) The telephone tines, includirg but not limited to, all piping and components itstalled or to be installed upon the premíses traveling over and under the common a¡eas of this condominium and over and under the limited cornmon areas of this condominium provided, however, that the responsibility for maintenance of the same upon or rrnder the limited colnmon areas shall be the responsibility and the expense of the unit owner of each limited common area,

h) Any and all irnproveln€nts thaf. may be conslructed or have been constructçd on any Common Area, or road, eas€ment or right-oÊway by the Developer or the Assooiation for the benefit of the Condominium Developrnent, excçpt ihosÇ improvements çonstructed by individual unit owners ol grouPs of unit owners for the benefit of individual units or groups of units, Any improvemcnt paid for by assessmenl imposed by saíd Association upon thc unit owners shall be a oommon elemenL

12.) coNpoMrNruM PARCEL: For the purposes of this Declaration the ownership of each unit shall entitte the unit owner to an equal undivided share in the ownership of the common elements, the common areas and limited common areas specif,red and established herein and full ownership of each unit togeiher with its respective undivided interests as defìned and hereinafter refened to as the "condomitium parcel", The equal undivided shares in the common elements, colnmon a¡eas and limited common areas hereby established shall be in accordance with the schedule ofownership ínter€st and voting interest hereinafter set forth.

I3.) VOTING RIGHTS: EXPENSES AND SURPLUS The proportìonate repres€ntation of unil owners for voting purposes in the Association of owners and the proportionate shares of the separate owners of each of ihe respective condominium parcels in the common surplus, the common expcnses and the cofimon areas and the common elements, shall be i¡ acco¡dance witJr the schedule ofownership inte¡est and voting interest hereinafter set forth, As used herein, the term "common surplus" means the excess of all receipts of the dssociation over lhe amounf of common expenses for which lhe unit owners are liable to the Associalion as hereinafter provided. The grantor shall he entitled to a proportion¿te vote for each unsold unit in accordance with the schedule of voting interest provided for each unit,

14.) PERCENTAGE OF Qy/NERSHTP rN COMMON AREAS ANp ELEMENTgINCLUDING VOTING INTEREST$: The value of the complete property, fixed solely for the purpose of determining voting rights and allocating relative values to the various units and not for the purpose of determining market o¡ salc value, and in order to determine percentage share of each unit in the expense of profits and rights in tho elemcnts held in coÍúnon as provided in Revised Statutes Annotated, Chaptet 479-A. as amended, is stated to bc Fivc Hundred Eighty Thousand Dolla¡s ($580,000.00). The permanent respective values of thc units (not including bui.lding or other improvements thereon) and percentages representing such values for each unit, irrespective of'any market or sale value shall be as follows:

Unit No. Value Votíne Shares Percenta[e of Ownership 2 $20,000 1.0 3.4482 J $20,000 1.0 3.4482 4 $2o,0oo t.o 3.4482 5 $20,000 1.0 3.4482 6 $20,000 1.0 3.4482 7 $20,000 1.0 3.4482 I S20,000 1.0 3.4482 e $20,000 1.0 3.4482

Page 39

KILN000113 Uni! No. --Value - Voting Shares Percentage of Orvnçrship l0 $20,000 1.0 3.4482 lt $2o,ooo 1,0 3.4482 l2 $20,000 1,0 3.4482 t3 $20,000 1.0 3.4482 t4 $20,000 1.0 3.4482 l5 $20,000 1.0 3.4482 l6 $20,000 1.0 3.4482 t7 $20,o0o 1,0 1.4482 l8 $20,000 1.0 3.4482 t9 $20,000 1.0 3.4482 20 $20,000 t.0 3.4482 21 $20,000 1.0 3.4482 22 $20,000 1.0 3.4482 23 $20,000 1.0 3.4482 24 $20,000 r.0 3.4482 25 $20,000 1.0 3.4482 26 $20,000 1.0 3.4482 27 $20,000 1.0 3.4482 28 $20,000 1.0 3.4482 29 $20,000 1,0 3,4482 30 $20.000 I,O 3.4482 $58o,ooo 29.0 tQ0%

15) cHANcE PERCENTAGE OF OWNERSHIP IN COMMON AREAS ELEME]NTS,-VSTING RIGHTS AND COMMON EXPENSES ORPRQ.E]TSI ^ND Notwithstanding the provisions of Paragraph 14 of this Dectaration, the proportionate undivided interest in any comrnon area, element or limited common area by any one or more unit owners may be altered or changed by the recording of any arnendment to this Declaration duly execrrlqd-tr¡'all u_litov.'ncrs' first mortgagees of such owners, affected by such changes. No such atteration shall aft'$$t the liEn of pLior recorded mortgages unless written_consent of the holder of such morlgage is obtained and recorded. Any alteration or change in theþpòrtionate voting rights of any unít süall be made only in açcordance with thc provisions of the By-Laws which are incoçorated herein by reference and made a part hereof as though fully set oul and are affixedphysically to this Dectarátion,

16.) OWNERSHIP OF UNITS. Ç9MMON AREAS. ELEMENTS AND LIMITED COMMON AREAS: Title to a unit may bo hetd in the namc of a corporation or jointly owned by more than one Person; however, a unit may not be physically further subdivided. The comlnon areas, elements and facilities, and the limited common areas shall remain undivided and no owner shall bring any action for partition or division eKcept as provided by Revised Statutes Annotated, Chapter 479-A, Theundivided intetest in the common areas, elements and facilities, and the lirnited common areas shall not be separated from the unit to which it appertains, and shall be deemed conveyed, leased, or enculnbered with the unit even though such interest is not expressly mentioned or described in the conveyance or other instrument.

I7,) COMMONAREÀS AND ELEMENTS USE: The common areas and elements shall be used in accordance with and subject to the following provisions: a) Rules and regulations No person shall use the common areas, elements or facitities or any part thereof, in any manner contrary to o¡ not in accordance with sucb rules and regulations pertaining thereto as from time to time may be promulgated by the z\ssooiation. Vy'ithout in any manner intending to limit the generality of the foregoing, ths Association shall havc thc right but not the obligation to promulgate rules and

Page 40

KILN000114 rogulations limiting tlle use of the Cornmon Are as, Elements or Facilities to members of the Associatíon and thcir respective families, guests, invitecs and servanls.

b) Maintennnce: Maintenance, repai¡ rnanagemenl ûnd opelation of the Common Areas, and Elements shall be the responsibility ofthe Association, but nothíng herein conlainecl however shall be construed so as to precltrde the Association from delegating to persons, firms or corporations of its choice, such duties as may be imposed upon the Association by the terms of this subarlicle (b) and as are approved by the Board of Directo¡s of the Association.

c), EÄpcnscst Expenses incuned o¡ to be incuned for Íhe rnaintenance, repair, management and operation ofthe common areas, elements and facilities shall be collected from unit owners as assessed. The Developer is excepted from the provisions ofthis paragraph.

d) Other uses: Subject to the rules and regulatiors fiom time to timo pertaining thereto, all unit owners may use the Comnron areas, Elements a¡d Facilities in such man¡er as wjll not restrict, interfere v¡ith, hinder, ençroacli or impede upon the lawful rights and use thereof by other unit owners.

e) Altcrations and hnprovcmcnts: The association shall have the right to make or cause to be nade such alterations and irnprovemeuts to the Common fueas, Elements and Facilities (which do not prejudice the right, title or interest of any unit olvner unless his written consent has been obtained, provided the making of such alterations and itnprovements arc first approved by the Board of Directors of the Associalion. The costs of such requesting unif owners shall be assessed as Common Expenses, unless in the judgment of not less than Eighty (80%) per cent of the Board of Directors the sarne are exclusively or substanÈially exolusively for the benefit of the unit owner or owne¡s requesting the sarne, jn which case snch requesting unit owner shall be assessed therefo¡ in such proportions as they approve jointly and failing suctr approval, in such proportions as may be determined by the Board of Di¡ectors of the Association, The¡e shall be no change in the shares ancl rights of a unit ownel' in the common areas or elements which are altered or further improved, whether or noÍ the unit owner contributes to the ct¡st thereoi The Developer shall not be bound by any of the provisions of this paragraph. Expenses occasioned by this paragraph shall not be bome by the Developer.

f) Developer The Thomson Company, Inc. reserves the right, in order to obt¿in government approval of sewage or septic systems for any unit and related limited common area (or for multiple units to be served by one system) to construct a sewage or septic disposal systern in a Common area or another limited common area or areas, Any such construction shall be alt easement for the benefit of said unit and shall be deemed conveyed with the benefited unit even though such easement is not expressly mentioned or described in the conveyance of othef instrument.

I8,) EASEMENTS FOR COMMON AREAS- The following easements from each Ullit Owner to each other unit Owner and to the Association shall include:

Page 4t

KILN000115 a) Ingress and Egress, easements th,rough the Common Elemenls and Common Areas for all persons making use of such Common Elements and Common A¡eas in accordance with the tenüs of the Condominium Documents including but not limited to a hve (5) foot wide easement for foot and bicycle trafflrc to be located along the boundary oflot, tract or parcel lines as shown on said revised plan hereinbelore described and in adrlition to include a five (5) foot vide casement for foot and bicycle trnffic to he looateil along the shore ofwaterf¡ont lots as strown on said revísed plant

b) Maintenance, Repair and Replacement. Easement through the Cornmon Areas, Common Elemcnts for maintenance, repair and replacement of the Common Areas, and Common Elements'

c) Utilities, Easements througlr the Common Areas, Common Elements and Limited Common Areas for the frrmishing of all utility services including but nof limited to conduits, ducts, piping, ptumbing and wiring.

19.I MATNTENANCE AN"D REPAIR OF UMTS The Unit Owner, at his expense, shall be responsible for the naintenance, repair and replaccment of a) All interior improvements, utilities, conduits, ducts, plumbing, \,viring and other facilities located inside his respective unit;

b) All improvernents, utilities, conduils, ducts, plurnbing, wiring and other facilities used solely for the respective unit involved;

c) All improvements, utilities. conduits, ducts, plumbing, wiring and other facilities located within the colrfi;es of ttre respective Limited Cornmon Arcas of the respective unit owners; urd used solely for the benoht of that unit;

d) All improvcrnents, utilities, conduits, ducts, plumbing, wiring alrd other facilities locaterl in a particular limited common area, bul servicing anothe¡ limited common area or areas shall be maintained and the expenses approved among all units benefrted by the same;

Ð The unit owner shall promptly report to the Association or its agent any defect or need for repairs, the responsibility for the remedying of which is the Association;

I The unit owner shall not make any alteratíons to arry improvement or utility which is to be maintained by the Association nor to remove any portion thereof or make any additions thereto nor impair any easement as hereditarnent, or to anlhing which would or might jeopardize ot irnpair the safety or soundness of any Common Area, Common Elernent, or Easement without fìrst obtaining written approval of the Board of Directors of the Association;

g) Nothing herein contained, however, shall he construed so as to impose a contracLual liability upon the Association for maintenançç, repair, and replacement, but the Association's liabilit¡ shalt be' limitcd to danrages resulting fronr nogligence,

20.) ALTERATION AND IMPROVEMENT - UNITS AND LIMITED COMMON AREAS:

Each Unit owner shall have the right to make reasonablc improvements and alterations to his unit and to the limited common area appertaining to his unit, including landscaping,

Paee 42

KILN000116 A unit's dimensions may be expanded into its appurtenart limited com¡non area with the written approval of the Development Commiftee. In the event of a dispute the question of expansion shall be submitted to the next special or annual meeting of the Association and decided by majority vote of all unit owners. In no event shall expansion be permitted which would restrict the scetric view from other u¡its'

21.) INSUP.ANCE - DESTRUCTION OF PREMTSES

a) Unit Qw¡er: Each unit owner shall obtain hazard insu¡ance providing coverûge against frre, windstorm and extended covcrage in an amount equal to thç maximum insurable replacemettt value of the unit and shall provide the Association with B ccrtifìcate of coverage. Unit owners may obtaín additional hazard and public liability insurance coverhg the contenls and use of the units and the use of limited common åTeas in such amounts as each unit owner shall determine necessary.

b) Hazard Insurance The Association shall obtajr¡ hazatd insurance providing coverage against fire, windstorm aud extended coveragc in an amount equal to thc nraximum inswable replacement value of the common elements and improvenrents. The original policy shall be for the benef,rt of the unit owners , the Association, mortgagees and lienors of¡ecord as their inte¡est may appeat All haza¡d insurance proceeds shall bc payable to the Association and shall be hcld pursuant to thc terms ofthis Declaration.

c) Public Liabilitv Insurance: The Association shall obtain public liability insurance havíng minimum linits of Three Hundred Thousand Dollars ($300 ,000) for bodily injury to ore person or Five hundred Thousand Dollars ($500,000) for bodily injury to multiple persons injured as a ¡esult of a common incident, and a One hundred Thousand Dollar ($ 100,000) policy for damage to property. Such policy shall provide coverage for claims of thi¡d persons against the Association and the membe¡s and for each individual unit owner against the Association anrJ the members and fo¡ each individual unit owner agai¡st the Association and the members. The original policy shall be taken ín the name of and held by the Association. Said Policy shall insrre the unit owners and the Association against any liability to the public or the unít owners, their invitees or tenants incìdent to the ownershíp and/or use of the condominium's comnron elements or common areas, and including the personal liability exposure of the unit owners, The policy or policies shall be issued on a comprehensive liability basis and shall be crossJiability endorsed so that the rights ofnamed insurers under the policy shall not be prejudiced with respect to action against another named insured, Each unit owner shall be billed for his pro-rata share ofthe policy premiums for both hazard insuranee and public liability insurancc as described above.

d) Reconstruction; In the event of damage or destruction to comlnon property, the Board ofDi¡ectors shall prornptly proceed with ¡econstruction. The Boa¡d shalL lnve the responsibility of executing all necessary contracts ior resto¡ation, shall anange fo¡ the disbursement ofall construction fr¡nds, the approval ofwork and any other matter pertaining to ihe repairs or teconstruction required. If the cost of repairs or reconslruction of the damaged cornmon property exceeds the amount of insurance funds available then the Board of Directors shall levy a specìal ásscssment against the owners of all units consistent with their percentage of the ownership common areas. Any insurance funds remaining upon tbe completion of construction or restoration shall be considered a common surplus lor the benefit of all unit owners.

e) Unit Reconstruction: Each unit owner shall promptly repaìr or rebuild a partially or totally damaged unit and shall fumish to the Board of Di¡ectors a schedule of repairs and a proposed date of completion of said repairs

PaEc 43

KILN000117 which shall be satisfactory to the Board. If, within ninety days of the loss, the owne¡ of tlre damaged or destroyed unit has not fumished satisfaotory proof to the Board of Di¡ectors of his intent to rebuild, the Board tr,ay apply to a oourt of competenl jurisdiotion for an order requirjng the immediate reconstruction of the unit or, in the alternative lhat the unit be conrpletely razod and graded to the extent that the unit is no longer unsightly.

f) Certificate: Each unit owner shall be required to fumish applopriate certificates of insu¡ance coverage to fhe Board of Directo¡,s.

MEMBERSEIP-jbLKII=]-$UOAL AN-KANASATKA CONDOMINIUM ASSOCIATION

Each unit owner of Kilnwood on Kanasatka.shall. by virtue of such ownership, by a menrber of Kilnwood on Kanasatka Condominium Association, hereinafter called the "Association", a non-profit corporation, organized under the laws oFthe State of New Hampshire for the purpose ofpromoting thc mutual benefit ofall condominium unit o\Mners. Each unit owner, by lhe acoeptance ofa deed, agrces to abide and be bound by the provisions ofthis Declaration, By-Laws and otherrules and regulations ofthe Association, The By-Larvs are appended to this Declaration and incorporated herein as though fully set forth. Untjl the first election of unit owners of the Board of Dirccto¡s of the Association, the right to pcrform 'the duties and functions of the Board shall bc exercised by thc Developer.

23.) ADM]NISTRATION OF PROPERTY

a) Condominium Documents, The administration of this Condominium is described hc¡cin shall bc pursuant to the provisions of this Declaration aud ttre By-Laws which are íncorporatcd berein by reference and made a part hereof as though fully set out. A plan ofowncrship is hereby constituted under and $ubject to the provisions ofthe Unit Owne¡ship of Real Property Act, Revised Statutes u\rmolated, Chapter 479-A, so that the various units may be oonveyed and reco¡ded as individual rcal property capabte of independent use, on account of each unit having its own çntrance and exit from and to a common area and facilíty of the project, each propeÚy ovner having an exclusive and particular right over his respective Unit and in addition the specified undivided interest in the cornmon atea.s, elements and facilities pursuant to the aforesaid statute.

b) Declaratio¡r Prevails If there are conflicts or inconsistencies betwe€n this Declaration and the By-Laws, the terms and provisions of this Deciaration shall prevail and the Unit Owners covenant to vote in favor of such amendmehts in the By-Laws as will remove such-conflicts or inconsistencies.

Page 44

KILN000118 c) Funds All funds of the Association after deducting costs incuned by the Association shall be. held for the benefrt of the Unit Owners for the purposes herein stated,

tl) lncorne All income received by the Association from the ¡ental or licensing of any part ol the Comnron Elements (as well as suoh inconre anticipated) shall be used for the purpose ofreduoing prospective Comrnon Expenses prior to established the annual asscssmont for Common Expenses'

24.) eOlvLP-tIANeE ,

a) EachOwner Esch unit ownershall comply with theprovisions of this Declaratioi,'ihe By-I-âws, decisions and ¡esolutíons of the Board of Directors, as lawfully amended f¡om time to time, and with the çovenants' condítions and restrictions eet forth in this Declaration or the Condominiurn Deed. Failure lo comply with any such provisions, decisions or resolutioru, shall be ground for an'action to recover sums due for damages, for injunctíve relief, órboih as provïded in Revised Stailtes Annotaled, Chapter 479-A or any other laws of this Staie,

b) No Exemption No Unit Owner may exempt himself from liabitity for his cont¡ibution towards the cofimon expenses by waiver of the use or enjoyment of any of the general and/or limited oommon ar€as, elements and facilities or by the abandonment ofhis unit.

c) Otheroersots AII present or futu¡e owners, tenants, future tenants or any other person that might use the facilities of the project in any manner, are subjcct to thc provisions of this Dec.laration, and the mere acquisition or rental ofany ofthe units of the projcct or tho mere act of occupancy ofany of said units shall signify that the provisions ofthis Declaratíon are accepted and ratified,

d) Acts Al1 unit owners shalt be liable for the expense of any maintenance, repair or replacement rendered necessary by his act, neglect or carelessness or by that of any membe¡ of his family or his or their guests, enrployees, agen(, or lessees, but only to the extent that such expense is not met by the proceeds of insurance ca¡ried by the Association. Such liability shall include any increase in fire insuranoe rates occasioned by use, misuse, occupancy, or abandonment of any unit or ils appurtenançes. Nothing herein contained, however, shatl be construed so as to nrodify any waiver by insuratlce companies of rights of subrogation.

25.) PRIORITY OF DECLARATION

a) RESTRAINTS ON TRANSFERS: There shall be no restrictions or prohibitions upon the subsequent sale, lease of other transfer ofa unit by a unit owner, provided, however, that any such sale, lease o¡ other transfer shall be subject in all respects to this Dcclaration.

Page 45

KILN000119 b) UNPAJD EXBEIÙSES: In a voluntary lransfer of condominíum parcel the grantee of the unit shall be jointly and severally liable with the grantor for all unpaid fees, expenses and assessmen(s by the Association against tlre latter up to the time of the grantor's transfe r, without prejudice to the grantee's right to recover frotn the grantor the amounts paid by the grantee the¡efor. However, any such grantoe shall be entitled to a statcment from thc Board of Directors ol the As.socìation and the grantee shall not be liable for nor shall the paroel conveyed by subject to a lien lor any fees, expcnses, or assessments against the grantor in excess of the amount therein set forth.

c) Ç.SMPLIANCE AND DEFAULT: Each unit owne¡ shall be governecl by and shall cornply with the terms of the condominiurn documents and rcgulations as they are amended from time to time, A default shall entitlc the Association or othe¡ unit owners to maintain actions at law or in equity, Thc failure of the Association, or any unit owner to enforce any righg condition, covenant or restricfion or olhe¡ provisions ofthe condominium documents shall not consiitute a waiver ofthe right to do so thereafler.

d) MUr-TIPLE R_EMEpTES: All rights, remedies and privileges granted to the Assoqiation or unit owner pursuanf to any tenns, provisions, covenants or conditions of the Condominium Documents shall be deemed to be cumulative, and the exercise of any one or more shall not be deemed to constitute an election of remedies nor shall it preclude the party thus exercising the same fiom exercising such olher and additional rigbts, remedies or privileges as may be granted to such party by the Condominium Documents or at law or in equity.

e) COSTS AI'ID_ATTORNEY'S FEES: [n any proceeding arising because of an alleged clefault or violation of any Condominium Document provision by a unit owner or ttre As.soóiation, if the pievâilinEpúy, shallbe éntítled to recover thecost of the ptoceeding and.siroh ¡easonable aitorney's fees as rtray be awarded by the Couf'

26.) SEPARATETAXATTON

Each U¡it and its percentage of undivicled interest in the conrmon areas, elements and facilities shall be deemed to be a parcel for the purposes ofseparate assessment and taxation by the Town of Moultonboro. Otherwise, none of the common areas, elernents and facilities or the limited common sreas shall be deerned to be a parcel for any other purpose. Each Unit Owner shall promptly pay all assessmonis and taxes as received and as each beco¡nes due.

27.) ASSESSMENTS.

Assessntents against the U¡rit Owncrs shall be made or approved by the Board of Direotors of the Association and paid by the Unit Owners to the Association in acco¡dance with the following provisions

a) Sharc ofExpense: Common expenses. Each Unit Owner shall be liable for his share of lhe Common Expenses, and ony Common Surplus shall be owned by each Ulrit Owner in a like share.

Pagc 46

KILN000120 b) z\ssessments othçr than Commou Expenses: Any assessments, thei authorily to levy which is granted to the association or its Board ofDirectors by the Condominiunr Documents shall be paid by the Uflit Owners to the Association in the proportiols hereinbefore set forth,

c) Other Assessments: Other assessments shall be made in accordance with the provisions of the Condominium Documents and if the tìnre ofpayment is not set forth in the Condorrúnium Docufients, the same shall be determined by the Board of Directors of the Association,

d) Assessmenls for Emersenciesl Assessments for Common Expensæ of emergencies which cannot be paid from the Common Expense Account shall be made only by the Board of Directors of the Associafíon.

e) Assessments for Liens All iiens of any nature inctuding laxes, water arrd sewer charges, and special assessments levied by governmental authority which are a lien upon rno¡e than one Unit or upon any portion ofthe Conunon Elements, shall be paid by the Association as a Common Expense and shall be assessed against the Units in acco¡dance with the shares of the Units concemed or chargetl to the Comlnon Expense Account' whichever in the judgment of the Board of f)i¡ectors is ap¡ropriate.

f) Develoue¡ The Developer shall not be bound to pay assessmenls unlcss it elects to do so in witing.

28.) LrENS

a) Priority of Liens: All sums asscssed by the Association of Unit Owners but unpaid for the share of common expenses chargeable to any unit shalt constítute a lien on such Unit prior to all other liens except taxes and theunpaidbalanceofthefirstmortgageofreoord. SuchlienmaybeforeclosedbytheBoardofDirectors in like manner as a mortgage of real property, In any such foreclosure fhe Unit Owner shall be requirecl to the pay a rental for the Unit and the Board of Directors may request the appointment of a recèiver to collect same, Ihe Boa¡d of Djrectors may bi{ in the Unit at the foreclosure sa1e, and may acquire and hold, lease, mortgage and convey the sarue, Sui! to recover a moneyjudgnrent for unpaid common €xpenses shall be maintainable without foreclosing or waiving thc lien securing the same,

b) Foreclosure Purchaser: Where a mofigagee or purchaser acqr¡ires title to a Unit as a result of foreclosure of the first moltgage such person, his successors or assigns, shall not be hold liable for the share ofcommon expeÍsqs or assessment.r which became due prior to the acquisition of title such pcrson and such common expenses or assessments shall be deemed to be cornmon expenses collectible from all of the Unit Owners, including such acquirer, his successors and assigns.

Page 41

KILN000121 rl

29.) COVENANTS RUNNING WITH THE LAND

All provisions of the Condominiurn Documents shall be construed to be covenants running with the land and with every part thereof and interest therein including but not limited to every Unit and the appurtenances thereto; and every Unit Owner and claimant of the property or anypart lhereof o¡ inte¡est therein, and his he.írs, executors, adminisfraton, successors ald assigns shall be bound by all of the provisions of the Condominiu¡r Documents,

30.) FURTHER COVENANTS The grantee, as a ñ:rther inducemenl, Govenant that neither they, their heirs, assigns, successorsi personal represenlatives, dcvisees or beneficiaries will ever attempt to defeat anyright and/orpower retained by the Association by the applicafion ofthe rule againsl perpetuities, or the rule against restraints or alienation, ancl hereby rvaive every defense or cause based upon or arising out offhe sanç,

31.) UNTTpEEpS Any t¡ansfer ofa Unit shall include alt appufenances, restrictions and easements thereto whether or not specihcally described.

32,) REMOVAL FROM UNIT PROPERTY ACT The dedication of the propely to the plan of Unit owne¡ship herein shall not be revoked, or the propçrty removed from the plan of Unìt Ownershþ, or any of the provisions hercin amended unless all of .the owners and mortgagees of all of the mortgages covering the units unanimously Bgree to such revocation, or amcndment, or removal of the property from the plan by duly.recorded ifisüuments' €xcept as otherwise provided by Revised Statutes A¡notated, Chptet 479-Lthat is to sây, if the prop€rty subject to the plan of Unit Ownership is totally or substantially damaged or dætroyed, the repair, reconstructionor disposiiionof the property shall be as provided by Revised Statutes Annotated, C\tapfet 479-Ãof the taws of the State of New Hampshire.

33.) SERVICE OF PROCESS

G, Ronald. Thomson, of Moultonboro, County of Carroll, State of, NewHampshire shall be the person to receive service ofprocass, in accordance with the provisions ofRevised Stâtutes Aînotated, Chaplct 419-A,

34.) PROyTSTONS pERTATNING TO DEVELOP_EI.: For so long as The Thonson Cornpany, Iuc, continues 10 own any of the Units the following provisions shall be deemed to be in full force and effect, in accordance with the Condominium Documents:

a) For so long as the Developer owns more fhan ten (10) Unils a majority of the Board of Directors of the Association and the officors shalf bo selcctcd by said The Thomson Company, Inc, and such persons as may be selected by The Thomson Company, Inc. need not be residents in the Condominium Developrnent.

a;gè 48

KILN000122 b) Said The Thomson Company, Inc. specifically disclaims any intent to have made any rvarranty or representation in connection with the Property or the Condominium Documents oxcept as specifìcally set forth therein and no person shall rely upon any \ryarranty or representat¡on nol so specifically made therein. Thc estimates of Common Expenses are deemçd accurate, but no warranty or guaranteg is mado nor intended, nor may one be relied upon.

35.) MEMBERS OETHE BOARD OF DIRECTORS The names and addresses of the first members of lhe Board of Directors, to serve until fhei¡ succ€ssors a¡e chosen and qualified pursuant to the Bylaws incorporated herein by reference and made a part horeof as tlrough fully set out are as fotlows:

Names: Addresses: G. Ronald Thomson Moultonboro, NewHampshire Lorraine E, Thomson Moultonbo¡0, New Hampshire Frederick G, Durepo 638 Metropolitan Avenue Boston,

36.) AMENpMENT OF pECLARATION The Declaration may be amended at any time by unanimous agf€ement of the owners of all condominium parcels and the ownérs'ancl holde¡s of all mîî-gagõããTièns asE¡ãenced by an insûument executed by each owner and lieuor, and recorded in the public recorded ofCar¡oll County, New Hampshire. As to all matters exceJrt those adjudicating the ownership inlerest in cómmon areas,.elements or facilities, and common surphls, the assessmeflt shares of Unit Omers, this Declaration may be amen

37,) NO DIVESTMENT In no event shall this Declaration be amended in any uranner which shall divest any owner alld holder of a recorded lien, or any parcel owner of any vested right ofreadily ascertainable value without first obtaining the w¡itten consent ofthe owner and hotder ofany ¡ecorded lien or any parcel owner whose intere$t is so effected.

38.) TNVALTpTTY If any term, covenant, provision, phasc or othcr clemçnt of the Condominium Document is hetd to be invalid or unenForceable for any reason whatsoever, such bolding shall not be: deemed to affect, alter, modiff or impair in any man:rer whatsoever any other term, provisions, covenant o¡ element of the Condominiurn Documents,

39.) CAPTTONS Captions used in the Condomjnium Doçuments are insorted solely as a matter of convenience and shall not be relied upon or used in construing the effect or meaning of any of the text of the Condominium Documents,

KILN000123 tl ))

40.) GENDER SINGULARPLURAL Whenever the context so permits, the use of the plu¡al shall include the singular, the plural and any gender shall be deemed lo include all genders,

41.) SEVERATITLJTY Ifany provision ofthis Declaration, or any section, sentence, clause, phrase or wor4 or the applioation thereof in any cirournstances be judicially held in conflict with the laws of tlre Slate of Now Ilampshire, the said laws shall bc deemed controlling and the validity of tlæ re¡nainder of this Dcclaration and the application of any such provioion; section, $onteícc, clause, pluase or word jn other circumstances shall not be affected thereby.

IN WITNESS WHEREOF, THE THOMSON COMPANY,lNC, has caused this

Decla¡ation to be execukd by its President, and its Corporate seal to be herounto afÏìxed, ùc day and year

fìrst abora writtefl.

By Presidenl

TTIE STATE OF NEW HAMPSHIRE BELKNAP, SS.

The foregoing imtn¡ment was acknowledged before me tbis 28ú day of JuJ¡', 1973,W G. Ronald Thomson, President of The Thomson Company, [nc., a New Hampslrire Corporatior¡ onbehalf of the Corporation,

Page 5O

KILN000124 EXHIBIT C

KILN000125 Rsce i ved: Nou 3 2010 02:20pm Exv-ril-¡iì NO\/. 3, 20lc 2:34P1'lt i\lo,723 F, I

THE STATE OF NEW I#.N4PSHIRE

CARROLL, SS, SUPEzuOR COURT

No_ 212-2010_CV_00191

Kilnwood on Kanasatka condominiÌxm unit Association, Ino.

v.

Perry Smith, Andy and Jill Belliveau, and Rob and Candy Baker

I, Rob B.kur, hereby state as followsl

l, I am a resideart of Massachusetts and reside stL2MtJl Street, S. Hamilton,

Massachusetts 01982.

2- I am a respondent in tåe above captioned rnatte,r. ï have reviewed. tåe Motion to Dismiss or fo The Alternativo For summary Judgment a¡d the Meoo¡andr¡rn of Lav¡ in suppor!

a¡¡d the factual allegatíons set fortt are accru-ate to the best ofrnyknowlodge"

3' To the best of my knowledge and beliefi the Stipulation eatered in the case

captioned Ted H¡Iton et al v. G. Ronald Thomson,Docket No. Equity 506E, dated Maroh 20,

1973 attached to Respondents' Memoraudr¡m of I¿w in Support of Motion to Dismiss or In The

Alfea-native For summary Judgmeat as Exhibit A is a tue and aoourat" copy.

4' To the best ofmyknowledge aud bclief, the Deolaration of Condominium attached to Reqpondents, Memo¡andum of [¿w in Support of Motíon to Dismiss Or ]Ln Tbe

Alter¡ative For snmmaryJudgment as ExhltitB is a tn¡e and accnrate copy.

KILN000126 Rece i ued: Nov 3 2010 02:20pn NOV, 3,2010 2;34PM j\lo, i23 P,2

coLhtTYoWSTATE OFN4ASSACHUSETTS I

Tbe above Rob Baker personally appeared beforo me aud swore that the foregoing is tue and ocourate to tåebest ofherhowledgo

ofthc Peace '¿

KILN000127 lì.,t-EIVEIl{ rl jI Í;.' ,) - ?lell ))

THE STATE OF NEW HAMPSHIRE B'í: ------

CARROLL, SS. SUPERIOR COURT

No.2t2-2010-CV-00191

Kilnwood on Kanasatka Condominium Unit Association, Inc.

v.

Perry Smith, Andy and Jill Belliveau, and Rob and Candy Baker

AFFIDAVIT OF ROB BAKER IN SUPPORT OF RESPONDENTS' MOTION TO DISMISS OR IN THE ALTERNATIVE FOR SUMMARY JUÐGMENT

I, Rob Baker, hereby state as follows:

1 . I am aresident of Massachusetts and reside at 22 }r.f.ill Street, S. Hamilton,

Massachusetts 01982.

2. I am a respondent in the above captioned matter. I have reviewed the Motion to

Dismiss Or In The Altemative For Summary Judgment and the Memorandum of Law in Support,

and the factual allegations set forth are acstrale to the best of my knowledge.

3. To the best of my knowledge and belief, the Stipulation entered in the case

captioned Ted Hilton, et al v. G. Ronald Thomson, Docket No. Equity 5068, dated March 20,

7973 attached to Respondents' Memorandum of Law in Support of Motion to Dismiss Or In The

Alternative For Summary Judgment as Exhibit A is a true an

4. To the best of my knowledge and beliel the Declaration of Condominium

attachedto Respondents' Memorandum of Law in Support of Motion to Dismiss Or ln The

Altemative For Summary Judgment as Exhibit B is a true and accurate copy.

KILN000128 cc ct¡{ v"¡J v10. Ê',Yf,i,,,'t I i Y ro CouNrYoMSTATE OF MASSACHUSETTS

The above Rob Baker personally appeared before me and slvore that the foregoing is true

Cheryl L. Tounænd No[t] ftÛ¡c CmnmsclÛ¡ ol tlËlduolb lly Cqiltßifn s4[B!AryFl 19, 20f6

KILN000129 STATE OF NEW HAMPSIIIRE CARROLL, SS SUPERIOR COURT

KILNWOOD ON KATIASATKA CONDOMINTUM rINrT ASSOCTATION, rNC. P.O. Box 380 Center Harbor, NH 03226

v.

PERRY SMITH, P.O. Box 297,Melvin Village, NH 03850 'West ANDY & JILL BELLMAA,4 St., Georgetown, MA 01833-1323, and ROB & CANDY BAKER, 22Mill St., S. Hamilton, MA 01982

CASE NUMBER 212-2OIO-CV-OO I 9 1

PETITIONER'S RESPONSE TO COUNTERCLAIM oF RESPONDENTS ROB BAKER, CANDY BAKE& ANDY BELLIVEAU AND JILL BELLIVEAU

NOW COMES Petitioner, Kilnwood on Kanasatka Condominium Unit Association, Irc., a New Hampshire voluntary corporation having its principal place of business in Moultonboro, Carroll

County, New Hampshire by its attome¡ Patrick Wood Law Office, PLLC, and in response to the counterclaim filed by the above Respondents answers as follows:

1. The Petitioner is without adequate knowledge to either admit or deny the allegations in Paragraph I and puts the Respondents to its proof thereof.

2. The Petitioner is without adequate knowledge to admit or deny that the others listed as Plaintiffs in the action in their counterclaim Paragraph 2 were "associated with the Kanasatka

Watershed Association" and puts the Respondents to its proofthereof. Other than that, the Petitioner admits that such an action was filed and the stipulated order attached is a copyof the order that was filed with the Carroll County Superior Court in that case.

3. The Petitioner neither admits nor denies that allegations set forth in Paragraph 3 but instead asserts that the Order speaks for itself.

Novernber 8, 2010 Page I

KILN000130 4. The Petitioner neither admits nor denies the allegations set forth in Paragraph 4, but instead

asserts that the Order speaks for itself.

5. The Petitioner neither admits nor denies the allegations set forth in Paragraph5, but instead assets that the Order speaks for itself.

6. The Petitioner neither admits nor denies the allegations set forth in Paragraph 6 but instead

asserts that the Order speaks for itself.

7. The Petitioner neither admits nor denies the allegations set forth in Paragraph T,butinstead

asserts that the Order speaks for itself as does the Declaration of Condominium.

8. The Petitioner neither admits nor denies the allegations set forth in Paragraph 8, but instead

asserts that the Declaration of Condominium speaks for itself.

9. To the extent Paragraph 9 sets forth the language in Paragraph 36 of the Declaration it is admitted.

10. Paragraph l0 calls for conclusions of law to which no answer is required and the allegations are denied.

11. Petitioner is without adequate knowledge to either admit or denythe allegations set forth in

Paragraph 11 and so those allegations are denied and the Petitioner is put to its proof of those allegations.

12. Petitioner is without adequate knowledge to either admit or denythe allegations set forth in Paragraph 12 and so those allegations are denied and the Petitioner is put to its proof of those allegations.

13. Petitioner is without adequate knowledge to either admit or denythe allegations set forth in

Paragraph 13 and so those allegations are denied and the Petitioner is put to its proof of those allegations.

14. To the extent that Paragraph 14 calls for conclusions of law to which no answer is required and so those allegations are denied and the Petitioner is put to its proof of those allegations.

15. Paragraph 15 calls for conclusions of law to which no response is required and the allegations are denied; to the extent this paragraph alleges actions on behalf"leadership ofthe association" that would be for their personal benefit," the allegations are denied. 16. Denied.

Novernber 8, 2010 Page2

KILN000131 \VHEREFORE, Petitioner respectfully requests that the Honorable Court:

A. Dismiss the Counterclaim with prejudice and;

B. Grant such other and further relief as the Court may deøn just and proper.

Respectfu lly submitted, KILNWOOD ON KANASATKA CONDOMINIUM UNIT ASSOCIATION, INC. By Its Attorne¡ PATRICK WOOD LAV/ OFFICE, PLLC 555 Main Street Laconia, NH 03246 603.524.1446

1 ,ú¿e,/.îôé¿ Zolo By: Date PatricklH. W'ood, NH PATRICK IWOOD LAW OFFICE, PLLC 555 Main Sheet Laconia, NH 03246-3449 603.524.t446

CERTIFICATE OF SERVICE

I hereby certiôr that a copy ofthis Petitioner's Response to Counterclaim of Respond.ents Rob Baker, Candy Baker, Andy Belliveau and Jill Belliveau has been fo warded this ffl day of November, 2010 to Attorneys Steven J. Dutton and Scott H. Harris, Counsel for those Respondents, and to Perry C. Smith.

BA#2785

November 8, 2010 Page 3

KILN000132 STATE OF NEW IIAMPSIIIRE CARROLL, SS SUPERIOR COURT

KILNWOOD ON KANASATKA CONDOMINIUM UNIT ASSOCIATION,INC. P.O. Box 380 Center Harbor, NH 03226

v.

PERRY SMITH, P.O. Box 29T,llvf:elvinVillage, NH 03850 ANDY & JILL BELLM AA , 4 West St., Georgetown, MA 01 83 3-1323, and ROB & CAÀIDY BAKER, 22}y4ill St., S. Hamilton, MA 01982

CASE NUMBER 212-2OIO.CV-OO I 9 1

OBJECTION TO RESPONDENTS ANIDY BELLIVEAU, JILL BELLIVEAU, ROB BAKER AND CANDY BAKER MOTION TO DISMISS

NOV/ COMES the Petitioner, Kilnwood on Kanasatka Condominium Association, lnc., a

New Hampshire voluntary corporation having its principal place ofbusiness in Moultonboro, Ca:roll

County, New Hampshire, by its attorney Patrick V/ood Law Office,PLLC, and in response to the

Respondents' Motion to Dismiss/lVIotion for Summary Judgment, states the following:

1. There is nothing in the 1973 stipulation entered into by G. Ronald Thomson, the

Declarant of Kilnwood on Kanasatka Condominium, that specifies the type and form of ownership for the Kilnwood development other than a reference to "twenty-nine single family dwelling units."

The assertion by Respondents that the Petition for Reformation is an attønpt to "avoid restriction" is either a misreading ofthe Petition or an intentional mischaractenzation. lndeed, the third prayer for relief in the Petition asks the Court to order that "Covenants and Restrictions in the Declaration, as currently amended, shall remain in full force and effect until such time as it maybe amended bythe owners in accordance with such Declaration." The Petition also clearly recognizes that any change in the ownership requires I00% agreement of the owners and their mortgagees. This is why the Petition for Reformation was filed in the first place.

Novernber 8, 2010 Page I

KILN000133 2. The Petition does not propose nor suggest that any of the elements of the

condominium declaration that reflect the provisions of the 1973 stipulation be modified or changed

in any manner . There is no reason why any of the parties or the plaintiffs to that action needs to be

involved in the change of form of ownership proposed by the Petition for Reformation as there is

nothing in that stipulation that addresses the form of ownership ofthe development being established bythe Declarant of Kilnwood on Kanasatka.

3. The condominium statute is very clear that all ofthe requirønents of the statute must

be met in order for a condominium to be created. The Respondents' own statements in their Motion to Dismiss admit that there have been "administrative details" left undone. These are not

"administrative details" but are substantive legal issues that create serious legal complications for a

number of owners of Kilnwood which is substantially the basis for the Petition for Reformation. The costs of preparing floor plans and as-built site plans for all of the units at Kilnwood would be

extraordinary and would impose a substantial burden on a large majority of owners at Kilnwood which burden would be lifted from them if the proposed Reformation were granted.

NOW, THEREFORE, for the reasons set forth above, the Petitioner respectfullyrequests that the Honorable Court:

A. Deny the Respondents' Motion to Dismiss and;

B. Deny the Respondents' Motion for Summary Judgment to the extent that same is included by their Motion.

C. Grant such other and further relief as the Court may deem just and proper.

November 8, 2010 Page2

KILN000134 Respectfully submitted, KILN]MOOD ON KANASATKA CONDOMINIUM UNIT ASSOCIATION,INC. By Its Attorney, PATRICK WOOD LAW OFFICE, PLLC 555 Main Street Laconia, NH 0324ó 603.s24.r446 î lh /øz/¿z 2a/ o Date PATRICK WOOD LAW OFFICE, PLLC 555 Main Street Laconia, NH 03246-3449 603.s24.1446

CERTIFICATE OF SERVICE

I hereby certifr that a copy of this Objection to Respondents Rob Baker, Candy Baker, Andy Belliveau and Jill Belliveau Motion to Dismiss has been fonv ardedthts ?4 day of Novemb e\2010 to Attorneys Steven J. Dutton and Scott H. Harris, Counsel for those Respondents, and to Perry C. Smith.

ood, NHBA #2785

November 8, 2010 Page 3

KILN000135 STATE OF NEW HAMPSHIRE CARROLL, SS SUPERIOR COURT

KIL|I-WOOD ON KANASATKA CONDOMINIUM UNIT ASSOCIATION, INC. P.O. Box 380 Center Harbor, NH 03226

v.

PERRY SMITH, P.O. Box 297,Melvin Village, NH 03850 ANDY & JILL BELLM AA , 4 V/est St., Georgetown, MA 01 83 3-1323, and ROB & CANDY BAKER, zzMill St., S. Hamilton, MA 01982

CASE NUMBER 212-2OIO-CV-OO1 9 1

AFFIDAVIT OF IN SUPPORT OF OBJECTION TO MOTION TO DISMISS/TVIOTION FOR SUMMARY JUDGMENT BY ENrD BURROIVS, PRESIDENT OF KILI\"WOOD oN KANASATKA CONDMTNTUM ASSOCIATION, rNC.

I, Enid Burrows, have reviewed the Objection to Respondents' Motion to Dismiss/Summary

Judgment and state the following:

1. The vote of the Association to proceed with the Petition for Reformation was made for the purposes of clarifring and rectiffing the title to the property owned byindividual members of

Kilnwood and not for the purposes of modiffing, amending, or avoiding the existing restrictions set forth in the Declaration of Condominium. 2. The Petition for Reformation is not designed in any way to modiff or change whatever legal obligations there are upon the Kilnwood on Kanasatka Condominium Association,

Inc. for its members by virtue of the 1973 stipulation in the matter of Ted Hilton, et al v. G. Ronald Thompson.

3. Some owners have received estimates for the cost of obtaining site plans and floor plans for their individual units and compliance with this obligation would impose a substantial burden on each of those owners.

November 8, 2010 Page I

KILN000136 Enid L. Burrows

STATE OF NEV/ HAMPSHIRE COUNTY OF BELKNAP

Subscribedto and swornto beforemethis Q+dayofNovember,20lObyEnidL. Burrows, in her capacity of President of Kilnwood on Kanasatka Condominium Association, Inc.

Public/Justice of the

November 8, 2010 Page2

KILN000137 THE STATE OF NEW HAMPSHIRE

CARROLL, SS. SUPERIOR COUR1

No.212-2010-CV-00191

Kilnwood on Kanasatka Condominium Unit Association, lnc.

v.

Perry Smith, Andy and Jill Belliveau, and Rob and Candy Baker

RE,SPONDENTS' REPLY TO PETITIONER'S OBJECTION TO MOTION TO DISMISS OR IN THE ALTERNATIVE FOR SUMMARY JUDGMENT

The Respondents, Rob Baker, Candy Baker, Andy Belliveau and Jill Belliveau, by their

undersigned attorneys, Mclane, Graf, Raulerson and Middleton, Professional Association,

hereby submit this reply to the objection filed by Kilnwood on Kanasatka Condominium Unit

Association, Inc. ("Kilnwood"), to its motion to dismiss or, in the alternative, for summary

judgment. In support of this reply, the Respondents state as follows:

1. Kilnwood's argument in both its Petition for Reformation and its objection falls

by its own weight. In short, Kilnwood's objection is an admission that it has no legal basis to

seek "reformation" of the condominium form of ownership currently in effect, and that its

Petition is simply an attempt to escape its bargain because some of its members believe it to be in

their own personal interests to abandon the original purpose of the development.

2. Specifically, in its objection, the Petitioner concedes that the basis for its Petition

for Reformation is solely the fact that "the costs of preparing floor plans and as-built site plans

for all of the units at Kilnwood would be extraordinary and would impose a substantial burden

on a large majority of owners at Kilnwoodf.]" Kilnwood's objection, fl 3'

KILN000138 CC,Ctieru+ nU(rr.0-.\ tl f-¿rr) 3. New Hampshire law, however, is clear that reformation is an extraordinary

remedy that only lies where there is clear and convincing evidence that an instrument fails to

express the parties' original intention as a result of fraud or mutual mistake of facl. A.J.

Cømeron Sod Farms v. Contínental Ins. Co.,742 N.H. 275, 282-83 (1997).

4. Here, Kilnwood admits, as it must, that the documents accurately reflect the intent of the parties, i.e., to create a condominium form of ownership. It nonetheless seeks to abandon this original intent so that it can now proceed with what some of its members perceive as a less

expensive approach that continuing with the current condominium form of ownership. ^See

Kilnwood's objection at fl 3; Affidavit of Enid Burrows, fl 3. In essence, sóme members of

Kilnwood do not like the bargainthey struck and are trying to escape it; not reform the documents to meet it.

5. Furthermore, Kilnwood's explanation completely ignores the requirements set forth in both RSA 479-A and the Declaration of Condominium, as well as the property rights of the Respondents (the very rights the statute and Declaration of Condominium are designed to protect). All parties, including the leadership at Kilnwood who are driving this litigation and the

Respondents, purchased their property with clear notice and understanding that the development was a condominium. The Petitioner does not even attempt to dispute this. Nevertheless, it seeks to fundamentally alter the property rights of the Respondents and ignore the protections provided by RSA 479-A and the Declaration of Condominium, at an enormous and unnecessary expense to the Respondents, simply to avoid the inconvenience of completing what ought to have been done in the first place.

6. The undisputed fact is that Kilnwood was formed and was intended to be formed as a eondominium association. The Petition has no legal basis and must be dismissed as a matter

KILN000139 of law. If this Petition is allowed, then members of condominium associations could simply

ignore the statutory and contractual rights of other members of the association and "opt out" of

the condominium form of ownership whenever they wished.

WHEREFORE, Respondents respectfully request that this Honorable Court:

A. Grant the Respondents' Motion to Dismiss;

B. In the alternative, enter summary judgment in favor of the Respondents on

the Petitioner's claims; and

C. Grant any other or further relief that the Court deems necessary or appropriate.

Respectfully submitted,

ROB BAKER, CANDY BAKER, ANDY BELLIVEAU ANd JILL BELLIVEAU

By their Attomeys,

MoLANE, GRAF, RAULESON & MIDDLETON, PROFESSIONAL A

Date: Novemberþ By: t- ,2010 '.\#rns, NH Bár 6840 J. Dutton, NH Bar l7I0l 900 Elm Street, P.O. Box 326 Manchester, NH 03 105 -0326 Telephone (603) 625 -6464

KILN000140 CERTIFICATE OF SERVICE

I hereby certify that on this þ/hay of Novemb er,2070,a copy of this Respondents' Reply to Petitioner's Objection to Motion To Dismiss, Or [n The Alternative For Summary Judgment was forwarded via first class mail, postage prepaid, to parties of record: 'Wood, Patrick H. Esquire Patrick Wood Law Offi.ce, PLLC 555 Main Street Laconia, NH 03246

aid

Mr. Perry Smith P. O.Box297 Melvin Village, NH 03850

4 KILN000141 Rlb BY: ------THE STATE OF NEV/ HAMPSHIRE

CARROLL, SS. SUPERIOR COURT

No.212-2010-CV-00191

Kilnwood on Kanasatka Condominium Unit Association, Inc.

V.

Perry Smith, Andy and Jill Belliveau, and Rob and Candy Baker

RESPONDENTS' SUMMARY STATEMENT

NOW COME Respondents, Rob Baker, Candy Baker, Andy Belliveau and Jill Belliveau,

by and through their attorneys, Mclane, Graf, Raulerson & Middleton, Professional Association,

and pursuant to Superior Court Rule 62, and the Notice of Structuring Conference, submit the

following Summary Statement in anticipation of the Structuring Conference on December ó,

2070. This Summary Statement is for pu{poses of the Structuring Conference only and cannot

be used as evidence in this case.

1. This case involves a dispute among unit owners of a condominium development

on Lake Kanasatka in Moultonborough, New Hampshire Petition for Reformation. The

Petitioner, Kilnwood on Kanasatka Condominium Unit Association, Inc. ("Kilnwood"), was

established on July 29,1985 to provide for the management of the condominium development on

Lake Kanasatka. Respondents, Perry Smith, Andy and Jill Belliveau, and Rob and Candy Baker,

are unit owners in the Kilnwood condominium development.

2. The Petitioner, Kilnwood, brings this action seeking to have this Court set aside

the form of ownership currently enjoyed by the Respondents and other unit owners in the

o'reform" Kilnwood condominium development and the Declaration of Condominium for

Kilnwood on Kanasatka to provide for a single-family residential subdivision form of ownership.

KILN000142 ccr¿1igr¡ç ¡ I 30 ¡ù \fb e ñrìû.,r¡ 3. On or about November 4,2010, Respondents moved to dismiss the Petition, or, in

the alternative, grant the Respondents summary judgment on Kilnwood's claim.

4. As set forth in Respondents' Memorandum of Law in Support its Motion,

Kilnwood's petition to "reform" the Declaration of Condominium has no legal basis, as

condominium documents accurately reflect the intent of the parties, i.e., to create a condominium

form of ownership and the Petition. Indeed, contrary to New Hampshire law, the Petition does

not seek reformation in order to correct a mistake of fact, but instead seeks to abandon this

original intent so that the Petitioner can now ptoceed with what some of its members perceive as

a less expensive approach that continuing with the current condominium form of ownership.

5. The Petition ignores the protections provides in both RSA 479-A and the

Declaration of Condominium (requiring unanimous consent make such a fundamental change to ownership rights) and seeks to disregard the property rights of the Respondents (the very rights the statute and Declaration of Condominium are designed to protect).

6. Furthermore, the Petition fails to join all necessary parties, namely the plaintiffs in the 1973 action against Kilnwood's developer. The parties in that action reached a stipulation that was entered by the Carroll County Superior Court and incorporated into the Declaration of

Condominium. This stipulation requires that any "reformation" attempt by Kilnwood take into account and assure enforcement of the various stipulations, so the plaintiffs in that action are necessary parties to this case under New Hampshire law.

7. Respondents Rob Baker, Candy Baker, Atrdy Belliveau and Jill Belliveau also assert a counterclaim against the Petitioner seeking a declaratory ruling from this Court that

Kilnwood on Kanasatka Condominium Unit Association, Inc. is a duly constituted condominium association and its land held subject to RSA 479-A.

KILN000143 Respectfully submitted,

ROB BAKER, CANDY BAKER, ANDY BELLIVEAU ANd JILL BELLIVEAU

By their Attorneys,

McLANE, GRAF, RAULESON & MIDDLETON, PROFESSIONAL ASSOCIATION

Date: November 7øl,zolo By:

Steven J. Dutton, NH Bar 17101 900 Elm Street, P.O. Box 326 Manchester, NH 03105-0326 Telephone (603) 625-6464

CERTIFICATE OF SERVICE

I hereby certify that on this f!!?ay of November, 2070,a copy of this Summary Statement was forwarded via first class mail, postage prepaid, to counsel of record:

Patrick H. Wood, Esquire Patrick Wood Law Office,PLLC 555 Main Street Laconia, NH 03246 and

Mr. Perry Smith P. O.Box297 Melvin Village, NH 03850

Steven J. Dutton

KILN000144 i iANo¿2011 THE STATE OF NEW HAMPSHIRE BY: ------CARROLL, SS SUPERIOR COURT

Kilnwood on Kanasatka Condominium Unit Association,Inc.

v.

Perry Smith, Andy & Jill Belliveau and Rob & Candy Baker

Docket No. 212-2010- CV-00191

RESpOIpE=ryI ppRRy sMrTH'S .TOTNpER rN PLEApTNGS PREVIOUSLY FILED BY CO.RESPONDE\{TS

NOW COMES Pe.ry Smith, Respondent in the above-entitled matter and hereby joins in

the following pleadings and request for relief submitted by Co-Respondenrs Andy and Jill

Belliveau and Rob and Candy Baker:

A. Affirmative Defenses and Counterclaim dated November 4,2010 (Respondent

Smith has previously filed pro se a separate and distinct answer),

B Motion to Dismiss or in the Alternative for Summary Judgmen¡ dated November 4,2070;

C. Reply 1o Petitioner's objection to Motion to Dismiss dated November 12,2070;

D. Respondents' Summary Statement dated November 29,2010

Respectfully submitted,

Perry Smith

By and through his Attomeys,

ALD & NICHOLS P.A.

Dated: January 3,2011 Paul T. Fitzgeruld (NH Bar ID # S07) Wescott, Dyer, Fitzgerald & Nichols, PA 28 Bowman Street Laconia, New Hampshre 03246 (603) 524-2166 - telephone (603) 528-2122 - facsimile

Page 7 ol 2

WEScorr, DYER, F|TZGERALD & NtcHoLs, pA

THT BowMN STRETT ScHool, 2B BowMN SIREIT LAcoN¡A,KILN000145 NEw HAMpSH|RE 032476 (603) 524-21 66

Cc'- Cti¿ru+ viA ( ino.,'l l.4.t t CERTIFICATION OF SERVICE I lrer:9.by- gertlfy that a copy of the within Respondent Perry Smith's Joincler in Pleaclings PreviotLsly.filed by Co-Rgspgrydènts was on this day mailed via Fírst Class Mail to opposing ' nn"-.ol  tt^*^., T)^+-i^t- TT \II^^ ) à tL. , , - ô1

Paul T. Fitzgerald (NH Bar ID # 807) cc: Perry Smith

Page2 of2

WEscorr, DYER, FtTzcERALD & NtcHoLs, pA

THE BowMN srR€rrScHooL. 26 BowffiN SIREEÍ LAcoNrA,KILN000146 NEw HÁMpsHtRE 032476 (6031 52+2166 STATE OF NE\M HAMPSHIRE CARROLL, SS SUPERIOR COURT

KTLNWOOD ON KA¡IASATKA CONDOMINTUM ASSOCIATION, INC. P.O. Box 380 Center Harbor, NH 03226

v.

PERRY SMITH, P.O. Box 297,Melvin Village, NH 03850 ANDY & JILL BELLMAU,4 V/est St., Georgetown, MA 01833-1323, and ROB & CA¡IDY BAKER, 22Mill St., S. Hamilton, MA 01982

CASE NUMBER 212-2OIO-CV.OO 1 9 1

MEMORANDUM OF LAW

NOW COMES the Petitioner, Kilnwood on Kanasatka Condominium Association, Inc., a

New Hampshire voluntary corporation having its principal place ofbusiness in Moultonboro, Carroll County, New Hampshire, by its attorney Patrick Wood Law Office, PLLC, and submits this Memorandum of Law:

This is a petition to reform the written documents between and among the various owners of property in Kilnwood on Kanasatka. Each lot in Kilnwood is conveyed subject to a document entitled "Declaration of Condominium" dated July 20,7973, recorded in the Carroll County Registry of Deeds in Book 548,

Page 238. This document sets forth certain covenants and restrictions concerning the use and development of certain real estate located on and adjacent to Lake Kanasatka in Moultonborough, Carroll Count¡ New Hampshire. This document also establishes the ownership interests of the various purchasers of lots in Kilnwood.

This Petition does not purport to nor is it intended to modiff or reform any of the covenants and restrictions set forth in the Declaration. lnstead, the Petition is intended to reform the ownership interests among the various owners and between the owners and Kilnwood on Kanasatka Condominium Association, Inc.

February 7,2011 Page I

KILN000147 Reformation is an equitable remedy available to parties to an instrument where the docume,lrt

"fails to express the intentions which the parties had in making the contract." Grabowski v. Grabowski, 120 N.H.754, 747 (1980); In the matter of Lemieux,S7 N.H. 370 (2008); Erin Food Services, Inc.v.688 Properties, l19 N.H.232 (1979); Gagnonv. Provnost,9T N.H.58 (1951);

Eastmanv. The Provident Mutual Relief Association,65 N.H. 176 (1889).

Kilnwood on Kanasatka rvas established in 1973 as a residential development. Since its inception, it has been viewed as a single-family residential subdivision. The subdivision plan refers to "Lots" and appears to be a standard subdivision. The Declaration provides detailed metes and bounds descriptions for each "limited coÍrmon area" and yet consistently refers to these areas as "lots.t'

The Town of Moultonborough for assessing purposes has not assessed the individual lots at

Kilnwood as condominium units. The Planning Department of Moultonborough has also considered

Kilnwood as a single-family residential subdivision. Owners of lots within Kilnwood generally do not consider their lot to be limited common area within a condominium but they view what they own as a subdivided lot. The individual properties in Kilnwood are not listed as condominium units when

sold. Similarly, for appraisal putposes, these properties are appraised as single-family residential lots.

As a "condominium" development, there would be more restrictions and limitations on the abilities of owners or prospective owners to obtain bank financing. Indeed, recent amendments to the Federal Housingrules restrict federally-backed financing within a condominium developmentto no more than3}o/o ofthe mortgages in the development. No such restriction applies to single-family residential subdivisions.

The developer of Kilnwood, the Thomson Company, hc., set forth its idea that "each house lot would enjoy privacy and its own unobstructed forest and lake or mountain view," each lot would also work "together with the other lots to form a community..." V/ith regard to using the

condominium form of ownership, the developer said it would serve as an "effective organization to

maîage" a "lot cluster form well by providing rights and advantages of private lot ownership while establishing an effective organization to manage those facilities which are most economically and

February 7,2011 Page2

KILN000148 sensibly held in common." The developer also refers to the approved subdivision and the sale of lots. The intent of the developer was to create a clustered subdivision with an association to manage the common properties, such as the beach, docks, and water system, and to enforce the covenants and restrictions. It does not appear that the developer intended to establish a development that would create more problerns for its owners.

In addition, despite being a "condominium" few of the buildings in Kilnwood have been shown on floor plans, as required of a condominium. And, updated, 'as-built" site plans for each building in Kilnwood have not been prepared and recorded in the Carroll County Registry of Deeds.

ln effect, this development has functioned as a single-family residential subdivision. This reformation would confirm this functionality legally.

Respectfully submitted, KILNWOOD ON KANASATKA CONDOMINruM ASSOCIATION, INC. By Its Attorne¡ PATRICK V/OOD LAW OFFICE, PLLC 555 Main Street Laconia, NH 03246 603.524.1 '7¿â,* 7 t Zotr B Date ¿ Patribk H. W íNHBA #278

CERTIFICATE OF SERVICE

I hereby certiff that a copy of this Memorandum of Law has been delivered thß# day of February, 2011 to Attomeys Steven J. Dutton and Scott H. Harris, Counsel for Respondents, Andy and Jill Belliveau and Rob and Candy Baker, and to Attorney Paul T. FitzgercId, Counsel for Perry Smith.

February 7 ,20ll Page 3

KILN000149 STATE OF NEW HAMPSHIRE CARROLL, SS SUPERIOR COURT

KILIYVyOOD ON KANASATKA CONDOMINIUM ASSOCIATION, INC. P.O. Box 380 Center Harbor, NH 03226

V,

PERRY SMITH, P.O. Box 297,Melvin Village, NH 03850 A¡IDY & JILL BELLMAU, 4'West St., Georgetown, MA 01833-1323, and ROB & CAI\DY BAKER, 22Mill St., S. Hamilton, MA 01982

CASE NUMBER 2T2.2OIO-CV-OO1 9 1

PETITIONER'S MOTION FOR RECONSIDERATION

NOW COMES the Petitioner, Kilnwood on Kanasatka Condominium Association, Inc., a

New Hampshire voluntary corporation having its principal place ofbusiness in Moultonboro, Ca:roll

County, New Hampshire, by its attomey Patrick Wood Law Office,PLLC, and moves the Court to

reconsider its decision granting Respondents' motion to dismiss and in support thereof states as follows:

The Petition recognizes that the Kilnwood on Kanasatka residential development is not a

static development but is subject to changes and modifications. Lndeed, the Declaration has been

amended nine times (^See Carroll County Registry of Deeds, Book 553, Page 180, Book 595, Page 130, Book 603, Page 184, Book 2043,Page2l5,Book 2043,Page224,Book 2043,Page228,Book

2043, Page 234, Book 2043, Page 237, and Book 2162, Page 673.) and the By-laws have been amended fourtimes (Book 2043,Page2l8,Book 2043,Page22I,Book 2043,Page228,and Book 2043,Page23l).

The first amendment to the Declaration, Book 553, Page 180, recorded September24,1973, was executed by The Thomson Company (the developer of Kilnwood) and Lorraine E. Thomson, the wife of G. Ronald Thomson, the president of The Thomson Company, as she was the owner ofUnit No. 3. This first amendment provided building descriptions for Units 3, II,6, 10, and23. In addition, as noted in the Petition, there were floor plans recorded with this first amendment. Since

March 21, 201I Page I

KILN000150 then, only one other set of floor plans have been recorded (for "Unit 20") and none ofthe subsequent

amendments provide any description of the buildings on any of the other lots.

It appears from the record that Mr. Thomson and Mrs. Thomson mayhave understood the requirements imposed by the Unit Ownership of Real Property act, RSA 479-A, at the time Kilnwood was established. However, from the almost complete lack of compliance with the

requironents of the Act requiring the recording of floor plans, RSA 479-A:12, by subsequent owners

in Kilnwood, it is highly improbable that all of those subsequent owners intentionally ignored their statutory obligations to have floor plans prepared and recorded. Moreover, it is also highly

improbable that the Association, were it aware of this requirement, would not have been insisting on

compliance with this statutory requirement and having amendments describing the various 'tnits" as

they were completed adopted and recorded as well.

The Association has brought this Petition to Reform the contracts that all these subsequent

olvners have with each other and the Association on the basis that their deeds and the instruments

establishing Kilnwood fail to express the intentions that the parties had in making those contracts. Grabowski v. Grabowski, I20 N.H. 745, 747, 422.A.2d, 1040 (1980), cited in In the Matter of Lemieux,157 N.H. 370, _(2008). "It is well established that courts may grant reformation in proper cases where the instrument fails to express the intentions which the parties had in making the contract." Grabowskí at747.

Rather than concluding that these subsequent owners intentionally ignored the law, it is more reasonable to assume that they were mistaken with regard to their obligations under the law in light of the existing documents. The situation of these owners is very similar to the facts presented in the

Lemieux case and the facts in the caseof Eastmanv. Association,65 N.H. 176 (1889), where a document (a divorce stipulation inLemieux and a certificate of associationmembership rnEastman) was interpreted in accordance with the parties' intent where'Justice and common sense" required it. Lemieux, at _ (citing Hovden v. Lind,301 N.W.2d 374,379 (N.D. 1981). "If the parties are mistaken with respect to the legal effect of the language that they have used, the writing may be reformed to reflect the intended effect." Lemieux, ãt _, (citing l?es tatement (Second) of Contracts, Section 155, comment a at 407 (1981).

March 21, 2011 Page2

KILN000151 The almost complete absence of compliance with the requirements of condominium law by

the vast majority of owners in Kilnwood and by the Association should be reviewed in the same ligþt

as the documents in Lemieux and Eastmar¿. Additionall¡ the evidence submitted by the Petitioner

supports the Association's position that there has been a substantial mistake made bythe majority of

the owners at Kilnwood with regard to the legal nature of their development, which mistake has also been made by manypeople outside of Kilnwood.

Although the plain meaning rule bars consideration of parol evidence to vary or contradict the meaning of a writing, parol evidence may establish that, due to a mutual mistake, the writing does not reflect the agreement of the parties. Ekco Enterprises,Inc.v. Remi FortinConstr.,Inc.,ll8 N.H. 37,41-42,382A.2d368,371 (1978); Gagnonv. Pronovost, supra 97 N.H. at60,80 A.2d at 383. Furthermore, the mere fact that the evidence is conflicting and solution of the problon difficult will not invalidate a finding ofmistake ifthere is evidence which would support it. Hould v. Company, 83 N.H. 47 4, 47 5, 144 A. 261, 262 (1929). Grabowski at748.

In Grabowski,the Court reformed the written property settlement agreement in a divorce in

light of the evidence of the actions of the parties subsequent to the signing of the agreement. Here,

there is no evidence of action taken by The Thomson Company to make sure that subsequent

purchasers of lots from The Thomson Company complied with the requirements ofthe condominium law. And, there is ample evidence that the subsequent owners of lots in Kilnwood did not

comprehend the legal obligations incumbent upon thern under the condominium law.

Reading the Declaration in isolation ignores the clear equities inherent in this Petition for

Reformation. It is clear that the vast majority of owners in Kilnwood have not understood the legal

import of the Declaration. Where the goal of the reformation is not to deprive any owner of that

owner's legal rights nor to adjudicate their ownership interests in common areas (as defined in the

Declaration), but rather to correct the terms of the Declaration in such a manner that beffer reflects the intent and understanding of the vast majority of owners in Kilnwood, justice and common sense should prevail and permit the proposed reformation.

March 21, 201I Page 3

KILN000152 NOW, THEREFORE, Petitioner respectfully requests the court

A. To reconsider its order granting Respondents' motion to dismiss,

B. To deny Respondents' motion to dismiss, and

C. To grant such other relief as is equitable and reasonable.

Respectfully submitted, KILNWOOD ON KANASATKA CONDOMINIUM ASSOCIATION, INC. By Its Attorne¡ PATRICK \MOOD LAW OFFICE, PLLC 555 Main Street Laconia, NH 03246 603.s24.1

>zlTl¿o¿ z o q

CERTIFICATE OF SERVICE

I hereby certifr thatacopy of this Petitioner's Motion for Reconsideration has been mailed this z>4dayof March, 20ll to Attorneys StevenJ. Dutton and ScottH. Ha:ris, Counsel for Respondents, Andy and Jill Belliveau and Rob and Candy Baker, and to Attorney Paul T. Fitzgerald, Counsel for Perry Smith.

March2l,20ll Page 4

KILN000153 !i riltl :! L)

i,iLI V. l. THE STATE OF NEW HAMPSHIRE ------

CARROLL, SS SUPERIOR COURT

Kilnwood on Kanasatka condominium unit Associationr lnc. v.

Perry Smith, Andy & Jiii BeÌiiveau and Rob & Candy Baker

Docket No. 212-2010-CV-00191

NOW COMES Perry Smith, Respondent in the above-entitled matter and says:

1. The Petitioner has filed a Motionfor Reconsideration dafed March 22,2011;

2. Pursuant to Superior Court Rule 59-A a motion for reconsideration is to state

"...with particular clarity, points of law or fact that the Court has overlooked or

misapprehended...";

a 'Whether J. to receive further evidence or other materials in support of said motion is

within the discretion of the Court (Keshishianv. CMC,142 N.H. 168' 1997);

4. Nowhere in the Motionfor Reconsideration does the Petitioner plead that the

Court in its prior ruling overlooked or misapprehended any point of law;

5. Additionally, there is no information, argument or other material included in the

reconsideration motion that was not or could not have been advanced at the time

of the original filings in reference to the dismissal of this case or at the hearing

held by the Court;

NOV/ WHEREFORE the Respondent, Perry Smith, respectfully prays:

A. That the Motion for Reconsideration be denied;

B. For such other relief as justice may require.

Pagel o12

WESCOTT, DYER, FITZGERALÞ & NICHOTs, PA

THE BowMN SlRErr ScHooL, 28 BowMN Slrutr KILN000154 LACoNIA, NEw HAMpsH|RE 012476 (6OJl 52+2166 ct'. c,tìtvr,t A- u vtg, ¿,i$Àri Respectfu lly submitted,

Perry Smith

By and through his Attorneys,

WESCOTT, DYER, FITZGERALD &, NICHOLS P.A. :-<. ¡ -- ---(_; ) Dated: March 31,2011 z Paul T. Fitzgerald (NH Bar ID # 807) Wescott, Dyer, Fitzgerald & Nichols, PA 28 Bowman Street Laconia, New Hampshire 03246 (603) 524-2166 - telephone (603) 528-2122 - facsimile

CERTIFICATION OF SERVICE

the to Reconsideration was on I hereby certiff that a copy of within Objection Motionfor 'Wood, this day mailed via First Class Mail to opposing counsei, Attomey Patrick H. Attorney Steven J. Dutton and Attorney Scott H. Hanis.

cc: Perry Smith

Page2 ol2

WESco]-r, DYER, FITZGERALD & NIcHotS, PA

TH€ BowMN srruErScHooL,28 BoWMN slrurr KILN000155 LAcoNr^, Nrw HAMpsHtp¡.032476 16031 524-2166 THE STATE OF NEW HAMPSHIRE B Y: ------

CARROLL, SS. SUPERIOR COURT

No.212-2010-CV-00191

Kilnwood on Kanasatka Condominium Unit Association, Inc.

V,

Perry Smith, Andy and Jill Belliveau, and Rob and Candy Baker

OBJECTION TO MOTION FOR RECONSIDERATION

The Respondents, Rob Baker, Catdy Baker, Andy Belliveau and Jill Belliveau, by their

undersigned attorneys, Mclane, Graf, Raulerson and Middleton, Professional Association,

hereby submit this Objection to Kilnwood on Kanasatka Condominium Unit Association, Inc.'s

("Kilnwood") Motion for Reconsideration (the "Motion"). In support of this Objection, the

Respondents state as follows:

1. This Court should deny Kilnwood's Motion because the Court did not overlook or

misapprehend any points of law or fact. See Super. Ct. R. 59-4. The Motion fails to identify

any new facts or law that were not presented in Kilnwood's Petition for Reformation, in its

Objection to the Respondents' Motion to Dismiss, or in the oral argument held before the court

on February 7 ,2011 . Instead, Kilnwood repeats its same arguments apparently hoping for a

different result.

2. Kilnwood's Motion continues to misunderstand the concept of reformation.

Reformation is a specific legal tool that, relevant here, is designed to fix written agreements that

do not record the parties' true understanding. Trying to establish grounds for reformation by

offering evidence of what the Association today would suggest should have been done forty

years ago misses the mark. As this Court pointed out in its Order, Kilnwood's factual assertions

KILN000156 4', Clì¿rrt {.{.r\ \iAC( ¿,r\Curl "fall short of the possibility of even a preponderance" of evidence supporting a finding thal a

mistake by the parties at the time of inception of these documents, let alone meeting the standard

of mistake by clear and convincing evidence required for reformation under New Hampshire

law. Order,p.3.

3. Kilnwood has failed to raise any point of fact or law that the Court overlooked or

misapprehended under Rule 59-4, and, accordingly, there is no legitimate reason to disturb the

Order.

\ryHEREFORE, Respondents respectfully request that this Honorable Court:

A. Denying Petitioner's Motion for Reconsideration; and

B. Grant any other or further relief that the Court deems necessary or appropriate.

Respectfully submitted,

ROB BAKER, CANDY BAKER, ANDY BELLIVEAU and JILL BELLIVEAU

By their Attorneys,

McLANE, GRAF, ULERSON & MIDDLETON, PROFESSION OCIATION

Date: lprr ) ,zott By: 9 Harris, NH Bar 6840 Steven J. Dutton, NH Bar lTl0l 900 Elm Street, P.O. Box 32ó Manchester, NH 03105-0326 Telephone (603) 625 -6464

KILN000157 CERTIFICATE OF SERVICE

I hereby certify that on this / day of Apri l, 2011 , a copy of this Respondents' Objection to Motion for Reconsiderdtion was forwarded via first class mail, postage prepaid, to parties ofrecord:

Pakick H. Wood, Esquire Patrick \Mood Law Office, PLLC 555 Main Street Laconia, NH 03246

and

Paul T. Fitzgerald, Esquire Wescott, Dyer, Fitzgerald & Nichols, 28 Bowman Street Laconia, NH 03246-3761

KILN000158 U

THE STATE OF NEW HAMPSHIRE,

CARROLL, SS SUPERIOR COURT

Kilnwood on Kanasatka Condominium Unit Association,Inc.

v.

Perry Smith, Andy & JiU Belìiveau and Rob & Candy Baker

Docket No. 212-2010-CV-00f 91

JOINDER IN OBJECTION TO MOTION FOR RECONSIDERATION

NOW COMES Perry Smith, Respondent in the above-entitled matter and says:

A. Respondent Smith has previously filed an objection to the motion for

reconsideration in the above matter;

B. Respondent Smith hereby joins in and incorporates by reference into his own

objection the objection to motion ior reconsideration filed by Respondents Baker

and Belliveau dated April 1, 2011.

Respectfu lly submitted,

Perry Smith

By and through his Attorneys,

ERALD & NICHOLS P.A.

Dated: April4, 2011 Paul T. Fitzgerald (NH Bar ID # 807) Wescott, Dyer, Fitzgerald &, Nichols, PA 28 Bowman Street Laconia, New Hampshire 03246 (603) 524-2166 - telephone (603) 528-2122 - facsimile

Page 7 of 2

WEScorT, DYER. FrrzcER¡,LD & NrcHoLs. PA

THE BowMN STREETscHoor, 2B BowMN SrRrrr KILN000159 LAcoNrA, Nrw HÀMÆHtRr 032476 16031 524-2166

Ce'.Cti¿rLh 4\ l.lilt v\û., 0,11C,-,ì11 CERTIFICATION OF SERVICE

I hereby certify that a copy of the within Joinder in Objection to Motion.for on day Reconsiderationwas'Wood, this mailed via First Class Mail to opposing counsel, Attorney Patrick H. Attomey Steven J. Duttpn¡nd:\llorney Scott H. Harris.

Paul T. Fitzgerald INH Bar ID # 807) Perry Smith

Page2 of2

WESCOTT, DYE& FITZGERALD & NIcHoLs, PA

THE BowMN SIREET ScHooT, 28 BowIúAN STRTEI LAcoNrA,KILN000160 NEw HâMpsHtÆ032476 (6D31 52+2166 FxÆ-,¿ (on'da ánru ',ì /, u+¿{/ czn Fa*'e-*a-TK+

THE STATE OF NEI.J H.AMPSHIRE ( l\' ' :"-t ,')t, "' t ,"í CARROLL, SS. TSUPERIOR . COURT Equicy No. 5069 l,fafqh Term f.9 7 3

Ted Hilcon, ÊE al vs.

l:{; C. Rona1d Thomson BY:{nlL-A-.------

Now come che partÍes and rctp,-tr"t" an agree as forrows: r' The pe.icion may be marked dismissed wich prejudice_ 2. The peritionee and his successors and assigns agree Eo 'çedesign che subdivision t- kooror, ."" Kirnwood on.KanasaEka as ' ,.r"t described in Èwo "'" deeds, one from Lois A. sÈurEevanÈ uo.the p'ecitionee d'ated August L2, Lg67, ênd recorded in che carrorr counry Regis.er of Deeds, Book 418, Page 151, aqd ¿uå¿ paul " from T. Anbrose co G. Ronard Thornson dated January 15, LglL, and recorded ln Ehe carrorl county Regiscer of Deeds, Book 47g, page L42, so chau Ehere. shall noÈ be more chan 29 srngre famiry dwerrlng unrÈs. The 3. petiËionee shall redesign his dock sysEem as approved by Ehe Governor and Council so ÈhåE chere shall only be rhree 30-foot finger piers raEher Ehan E,he approved, five 35-fooc finger 1rr.-- piers proErudÍngnche exisEing dock facility. 4. The peEiEionee agrees Eo lÍmic che use of che docking

KILN000161 -2-

facilicy referred Eo Ín paragraph 3 above Eo 16 mocor boacs, and agreeç furcher EhaÈ no moorings shalr be praced off hÍs propercy excepC f or unpohrered waEer craf t.

5' The peciEionee shall noc permic t,he launching of mocor boacs from his propercy. 6, The PeÈicionee shall noÈ fill " r"t,Iands on.Locs. 6 and l0 as shown on plan enEitled Kllnwood, on Kanasacka recorded ln carroll councy of Regrscer of Deeds, pran Book 19, page 24. l' The peEicfonee shall ooc fill ar¡y shore lÍne appurËenan¡ Èo his prenises.' 8. The pecic.ionee agrees co gÍve advance noÈice to Ehe lpeEiEioners of +ny and atl requesEs Ëo Federal,, staÈe¡ oE local agencies for che dredging, fllllng¡ oE consËrucEion of subs,rif""" sewage sysEems whÍch shall include copies of all plans submiEÈed.. Ic is undersËood, and agreed EhaE insofar aB Ehe plans are tn accordance wÍrh any promulgaced sEandards of any such agenc;v Èhe peEicioners witl noE oppose any such reques¡s provided chat iE is undersÈood and agreed chaE che pecftloners shall have Ehe rlghc

co ruake recommendaÈions or suggesEÍons whenever there are noE objecEive sEandards applicabre Eo the requests. Nocice Eo rhe pecitioners shalr be sacisfied by noEice to the petiEloner, tÉlJ Thlrodøre'HilEon, or Eo Ehe SecreEary of che Lake Kanasatka WaEershed ssociaËÍon, Inc.

9. The pecicionee shall noE operace any cornmercial gasolÍne or marina facilicy for porA/er boaEs. KILN000162 .ì -3-

t0' The peEiEionee shalr noc add any addicional Eraccs of land co rhe properÈy described in paragraph z above or granE any righcs Eo the use of che propercy described in paragraph 2 above excePÈ Eo Ehose persons who have rlghc, Eicle, and ingeresc in and Eo any of the 29 singre famiry dwelling units as seÈ forrh in Paragraph 2 aboúer oE Eheir heirs, succesrorr, oE assigns. rl' The pecitlonee shall noc escabrish or permiÈ any beach tacíLícy or dock faclllcies on che properEy described in paragraph 2 above' excePÈ the beach facllicy as.presently consËrucËed and locaced and Èhe dock facÍrÍcy provided for above. L2- The peElEÍonee shall not dredge arong any shore rine appurEenant Eo his premises.

13' The petiÈonee shall noc place more chan one swiuunfng raft appurÈenant Eo Ehe shore lrne of hls premises. L4' The peticionee may relocaËe s,rrf."" naËer courses provided chac he shall provide chac Ehe-waÈer courses shall encer Èhe lake aÈ Ehe same.. löcation qs. aÈ present. 'rerease 15. The peÈfÈlonee shall glve a generar tro che peElEioners, érd Ehe pecltioner Htlton shall give Ehe peciclonee a general release.

16. This scipulacion shall be binding on che heirs, successors, anq assigns of the petiEionee.

KILN000163 .t '! -4-

L7, The provisions of paragraph I0 above shall noE be

conscrued Eo prohibic peEiÈionee from negoEiaEÍng wÍEh one

Doris Bacon for ch.e purposes of consEructing a vraEer Eank

EogeEher wirh the granÈi.ng of a right of way or easemenE from said Bacon Èo Ehe pecicÍonee for Ehe purposes of storing ¡raEer

for rhe cornmunicy water sysEem on pecÍcionee.ló land and for Ehe purposes of maintaining, consErucËing, and repairing said easernencs in consideraclon for whùch said Bacon shall reÊeive

from che pecicionee all Ehe benefics and privileges granced Eo

che 29 single famity dwelling unirs referred Eo in paragra.ph z above, Ehe same benefics and privileges Eo inure Eo che land lwned by Ehe said uu"on as shown on said plan referred Eo in paragraph 6 above

Daced Èhis 20rh day of March, L973.

, L¿' ¿7.. -) Ac Ëorney for Ehe PetiEionee PeÈÍtionee G. Ronal

KILN000164 LAKE KANASATKA WATERSHED ASSOCIATION, INC.

March 25,1973 Jear Members:

We have made what our attorneys and I believe is a good agreement with Mr. Thomson. I honestly believe that the lake will be safeguarded by our settlement. The Superior Court trial started on Thursday March 15th in Ossipee and an accord was reached Tuesday March 2}that 6 P.M.

Mr. Thomson agreed to the following stipulations: he agrees to cut the numbers ofhomes in his development by 20o/o, from36 to a maximum of 29. Since this changes his lots, he must resubmit his approvals. He has agreed to give the Lake Kanasatka Watershed Association advance notice of any and all requests to any Federal, State or local agencies for dredging, filling or construction of sewage systems which shall include copies of all plans submitted. He will not relocate any surface waters whether seasonal or permanent where they enter the lake.

He will build only three fingers on his pier, instead of the five approved by the Governor and Council. These three fingers will be reduced from 35 feet to a maximum of 30 feet. He will limit the maximum number of motorboats to 16 and no mooring for power craft will be placed off his property. No motorboats will be launched from his property. No commercial gasoline or marina facility will be operated. No further frll will be placed in Lake Kanasatka on his shoreline.

No other tract of land will be added to the property. No other beach or dock facility will ever be built. Only the buyers of the29 single family dwellings will ever have use of the land, beach or docking facilities and no others. No dredging will be done. Only one swim raft will ever be placed off the shoreline.

This agreement is binding forever for the use of the property to his hei¡s or assignees and will be enforced by the court. Finally, he has agreed to give all petitioners a general release. This means he will drop any idea of a suit against us, and we, of course, agree not to continue with our petition against him.

Mr. Bud Martin handled our case in couf and was supported by Mr. Mike Murphy. We are most fortunate to have chosen a law firm with such outstanding men. Mr. Martin's skill is exemplary and Mr. Murphy's diligence was without equal. The idea of the ordinance by Mr. David Killkelley was the basis of our whole case. We owe these three gentlemen a great deal of thanks. A memo from our attorneys summarizing the case will be sent to the members in the near future.

There may be some feeling that we should not have made an agreement with Mr. Thompson and instead pushed the case to enforce the dock ordinance. We could have done that - in a sense 'gone for broke' - but the best we could have done would be the removal of the dock. Beyond that we would have had no controls. Mr. Thomson must develop this land in some manner because of the large investment he has made already. He could have put docks all around the cove, divided his land into really tiny lots (there is no zoning), sold it to a developer who might completely destroy it, or added more beach land anywhere and have had many, many more people use the lake by adding more back land - a real disaster for the lake. In any case, our attorneys feel we did much better by getting a list of restrictions. In fact, they feel Mr. Thomson conceded a great deal.

At the signing of the agreement I spoke to Mr. Thomson and expressed the feeling that we were sorry that our ideas of lake use and his differed to such a degree, but that we had both made a compromise that we could live with, and that we would be glad to work with him to that end. He extended his hand and expressed the feeling that he also would do his best to be a good neighbor.

Sincerely,

Ted Hilton Sect. LKWA KILN000165 NIGHSWANDER, LORD, MART]N & KILLKELLEY

ATTORNEYS AT LAW

LACONTA, NEIiü HAMPSHIRE 03246

March 29, 1913

Mr. Ted Hil-ton Secretary Lake Kanasatka Watershed Association Laurel Holfow Road Syosset, New York LIl97

Re: Ted Hifton et al v. G. Ronald Thomson Members of the Lake Kanasatka lVatershed Association: Since the above-entitled fawsuit was a rel-atively long and involved proceeding, I felt it best to write this detailed report to the membership of the Lake Kanasatka Watershed Association. This report deafs onJ-y with the proceedinqs j-nvol-ving the petition filed Carroll- County Superior Court on Septenber 28, 1912. We fil-ed a petition on behalf of the Lake Kanasatka hiatershed Association signed by sixty-eight (68) individuals. Subsequent to the fiJ-ing of this petition, seven (7) indivj-duals requested that their names be withdra\^/n from the petition. Their names were withdrawn from the petition. The petition requested the court to enjoin and restrain the peti-tionee, G, Ronald Thomson, from changing the environment in and adjacent to Lake Kanasatka. The underlying theory of this petition was twofold: (1) to enforce the Moul-tonboro Town Ordinance, limiting the length of docks, wharfs, ox piers in or adjacent to Lake Kanasatka to forty (40) feet,' and, (2) to prevent the proposed development of the Thomson property based on the theory that the proposed development, as planned, constituted a private nuisance, i.e., an unreasonable use of property whi-ch substantiatly interferes with the use and enjoyment of neighboring property. The issue invol-ving the validity of the Moultonboro ordj-nance \^/as strictJ-y a legal matter. Although little fact investigation and development was necessary to prepare for this issue, much time was spent in the preparation of a detailed Memorandum of Law. The specific issues presented to the Superior Court was whether the Moul-tonboro ordinance r^/as a valid exercise of its police poh/er, since the State Legislature had specj-fically enãcted statutes regulating the

KILN000166 placement of dock facifities upon the public waters of the State of New Hampshire. Another issue before the Superior Court was whether or not the Moul-tonboro Ordinance ü/as in fact discriminatory, in that it singled out Lake Kanasatka for the imposition of the forty (40) foot l-imitation in the J-engths of docks, wharfs, or piers. For a detailed discussj-on of these legal issues, please see the enclosed copy of the Memorandum of Law submitted to the Superì-or Court. vate nuj-sance case reguired d preparatj-on, together with emórañdum of Law. -Initiall-y, aluable assistance in the

that it r¡/as his professional on concentration of' dwel-linq unitê substantiall-v contribute-to the This evidencê was introduced at trial to show that the proposed development wouÌd, in fact, adversefy affect the use änd- enjoyment oÏ the petitioners' land, thus ðreating a privaté ñuisance. Enclosed please find' the compl-ete 'deposition of Dr. Col-t, takên on March 14, 1913.

We next zeroed in on the proposed Thomson development from the standpoint of a professionaf planner and a septic engineer. In order to provide us with the necessary expertise, we retaj-ned the services of Mr. Kenneth Bradley of Bradley Associates, Concord, New Hampshire. Mr. BradJ-ey made several rather lengthy on-site inspections of the Thomson development. Mr. Bradley also testified at trial- and came to the conclusion that, based on his experience in constructing septic systems, the slope and soil- conditions of the Thomson property, and the J-ot sizes, it was his belief that the proposed development coul-d result in the possible discharqe of effluents into Lake Kanasatka. This evidence was agai-n used to establ-j-sh an injury, which the courts recognize as an abatable nuisance. Our preparation al-so included consul-tation with Mr. .lames F. Farrow, a professional land planner, and Mr. Philip Emery, a rea.l- estate deveJ-oper.

Under New Hampshire law, a difficul-t burden was placed upon us to show that Mr. Thomson's proposed use of his property constituted a private nuj-sance. This burden of proof is especially difficult when the use is a proposed use. We first had to establish that the proposed development woul-d more likely than not resul-t in

KILN000167 an injury to the petitioners which is greater than the injury to the public as a whol-e. Secondly, we had to establish that this injury woufd result in a subsLantial- interference with the use and enjoyment of the petitioners' property. The above-mentioned expert witness and consultants were retained j-n an attempt to meet this strict burden of proof. Trial- was begun en Friday, March 16, 19'73, at the Carrofl County Court House in Ossj-pee, New Hampshire. First of al-l-, the Judge, the attorneys, and the parties went on a view to Lake Kanasatka. Testimony conìmenced in the afternoon with the testimony of G. Ronald Thomson, the petitionee. It was our decision to first call- Mr. Thomson as our first witness in an attempt to discover exactJ-y what were his development plans. Al-so that day we introduced into evj-dence the official records from the New Hampshire Vlater Supply and Polfution Control Commission and the New Hampshire Water Resources Board. Trial- resumed on Monday, March 19, I913t at which time Ted Hilton was put on the stand. Ted was a strong witness and provided invaluabl-e testimony regarding what he considers the effects woul-d be on Lake Kanasatka of the Thomson development. Ted' s testimony r^ras interrupted towards mid-afternoon so that we coul-d introduce the testimony of Ken BradJ-ey, our expert on the construction of septic systems. Ted was put back on the stand the first thing Tuesday morning, at which time his cross- examination by Attorney Dave Decker was continued. Ted displayed great skill at answering Mr. Deckerrs cross-examination questions. By late Tuesday morning, we rested our case in chief. The opposing counsef then made a motion to dismiss the petition. Argument of this motion was conducted in the Judge's chambers. Judge Johnson índicated that he would not dismiss the complaint and stronqly suggested that the parties attempt to negotiate a settfement of the case. It h¡as at this time that serious negotiati-ons commenced. These negotiations continued throughout the afternoon, and at about 6;00 p.m. the stípulation between the parties was signed. Enclosed please find a copy of that stipulation. It is our sincere belief that this stipulatj-on provides the Lake Kanasatka V'latershed Association with many restrictions controlling the proposed Thomson development, such as: 1. Notj-fication regarding any developmental stages which require federal-, state, or local approval-s; 2. A reduction in the size and use of docking facilities;

KILN000168 3. Restriction concerning further dredge and f it_l_;

4. Restriction pertaininq to the size of the deweJ-opment' and an assurance thrat no additional pieces of land wilf -l-a.ter be added. Tn summary, t'his stipulation provides the Lake Kanasatka V'latershred Association with many safeguards which wou1d not have been included in any judicial decree. To the best of our knowledge, this is the first time in New Hampshire where a developer was forced to reduce the size of the development and place restrictions upon that development by the action of private parties. Very truJ-y yolrrs NTGHSV,üANDER, LORD, MARTIN & KILLKELLEY

By: Michael- C. Murphy

MCM: bw ) Enclosures

KILN000169 Kllnwood on KanasatùÌ

fHE SfgE 'i i : ,': \. ace on the shores of Lake

ountaàn vle'¡ts. llildllfe frcnt Freserve on slte. TwÔ ommunltY swlmnlng and boatln6 actfvltles ' ',:. :i THÐ IDSA ood,1 effort to bul rì'). f çr the klnd 1e ;i;; coüPlenent ? tlonal 1tle s prlvacy.and tnuc n vferv' lt u9 t'her the ln whlch st¡l ;' k11n6' snol{mo nsr ed for'

COþIDOÌ{ INT U[l O'dNERS¡IIF Envlronnentaì conslderatl0ns dlctated the declsion to cluster ubs¿vantlaL Portlon of ttre slte st,ate. ÎÌre condomlnlura form er form r'¡elL bY Provld'lng lot o!¡nershiÞ rfhÏìe ectabl.lshXng ge tlioeê. fäéill¿ies i"hich are ld In common.

: -: I | ' a : 1 ..'._, i STATUs -: lvlsio¡ or';ned end managed bY utilj,ties, beactr, boat dockt ed for ovËl- one third' of the been lrst 'q¿a¿e (11 lots) have ,o0o, ¡r'ãaftlonal consÈrueLlon omPlete the üeve}oPment"

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KILN000171 ffi,,¡!,* I {t Town of Moultonborough, Land Use Office 6 Ho[and Drive Moultonborough, NH 03254 (603)4764347

Ms. Enid Burows P.O. Box 918 Center Harbor, NH 03226 Jwte22,2010

Ms. Burrows,

Following our conversation on Tuesday regarding the perception of a need for a Site Plan or other land use permit, or conformance with current land use regulations to allow for conversion from a condominium form of ownership to a fee simple ownership for the individual lots in the Kilnwood Subdivision, (specificall¡ Tax Map 106, Lot 14), the Town will not require a separate Subdivision or Site Plan Permit to be approved as the Town currently has these individual lots broken out on our Tax Maps and Assessing softwa¡e.

As indicated in the Town's Assessing database, the lots in Kilnwood appear to be individually deeded single-family residences. As such, they would not requirc a Site Plan or other land use permit to allow for conversion from condominium ownership to fee simple. The lots also would not be required to conform to the Town's current subdivision regulations as they are pre-existing, non-conforming lots of record in the Town's assessing records.

I hope that this correspondence is responsive to your inquiry. If you have any additional questions, please feel free to contact me at the Town offices at (603) 476-2347, or via e-mail at dmerhalski@moultonboroughnh. gov.

Sincerely,

Town of Moultonborough

6 Holland Street - PO Box 139 * Moultonborough, NH 03254 * 603.47ç2347 * d merhalski@moultonborou ghnh.gov

KILN000172 Oflice of Assessor Tovm of Moultonborough 6 Holland St¡eet - PO Box 139 Moultonborough. NH 03254 ßA3l4764347 t Fax (6û3) 476-583s e-mail: [email protected]

August 31, 2010

Eaid Bunows POBox 918 Cente¡ Hatbor, NH 03226

&dd,

The Town of Mor¡ltonborough has been assessing ).oìr property, located on tax map 106, lot 14, with an address of 4 Briek Kiln Road, as a single faraily residence. The property record ca¡d lists yow property as O.7l acres of *aterfront land, improved with a l,l7ó square foot ¡aised Ìanch, built in I 985. Flease refer to the ailached property record oard for your proBerty. I have also attached a copy of the property record card f¡om the New Harnpshire Department of Revenue, originally printed in November 1996, tisting the propergy as a single family house located on a 26,136 square foot lot. ln fact, the entire Kilnwood development í3 considered to be a residential water access neighborhood. All of the properties haye been assessed as individual lots. The development is considered to be similar to many Òther association t¡pe developments located along our lakes, with individually owned tots sharing private roads and a waterfront parcel.

Please feel free to contact me if I can be of fu¡ther assist¿nce.

KILN000173 Anthony L. Randall NH Licensed Land Surveyor No. 834 Subsurface Disposal Systems Designer No. 1513 P.O. Box 1226 Ashland, NH 03217 Phone: (603) 968-9740

December 30,2010

Mr. Richard A. Goulet 22 North Hancock Street Lexington, MA 02420-3 41 6'

Sent Via E-Mail

RE: KILN\MOOD ON KANASATKA CONDOMINIUM - MOULTONBORO, NII

Dear Rich,

I sat down today and looked at what I think it would take for me to prepare the condo site plan and floor plans for the Kilnwood on Kanasatka condominium development. I estimate the cost to be somewhere around $24,000 to $26,000.

This estimate includes a site plan at a 50 scale which will consists of two sheets and floor plans for the existing structures which I think will consist of 15 sheets making a total set of 17 sheets. Also included will be gathering existing town hall data, misc. deed research, copies of existing deeds and plans, field location needed, computations of field data, mapping of the plans and the mylar prints needed for recording. I anticipated providing copies of the site plan sheets and floor plan sheet that pertains to the individual owners. I have also estimated a total of 5 complete plan sets consisting of the total 17 sheet set.

This estimate does not include any fees such as recording, town and state or anytime should it be necessary for representation at any meetings. Also not included is setting of any monuments that may be missing. The setting of monuments would be under a separate estimate once we know what monuments are missing.

Although I have tried to figure the cost the best I can I usually work by the hour plus materials and would prefer to do that on this project should you want me to work on the project.

Should you have any questions or if you would like to discuss this further please feel free to give me a call at your convenience.

Happy New Year Best regards,

Tony

KILN000174 'f.OWN 0t'' SUSETTE II{. REMSON MOULTONBOROUGH Tan Collector NEW HAMPSHIRE Phone (603) 476-2347 2{TO løxcollc.ctor@moultonborou nh.gov PROPERTY TAX ßTLL B:LLING DATE 5l21lI0 Land Building

Map Lot: 106-014-ooo-.ooo-ooo

Location: 4 BRICK KILN RoÀÛ

BIJRROWS ENID L PO BOX 918 CENTER HARBOR NH 03226-0918 Prepaid

TAX NOW DUE r, s02. oo 7 /LlLo ss"' I

' ::*¡l-lrNcoistnlgunoN I TNFORMATTON FOR TAXPAY4RS Muncipal 2.22 ïIoultonborough eollects taxes lwicc each ¡'ear, I'his is the firsl of two tax Schoo1 2.74 Local bills for 2(110. For information on ¡/our properþ raluation contact the State School 2,3a Selectmen's oflÌce a( (603) 476-2347. County 1.03 lf you are a llfoultonborough resident and arc elderþ, disablcd, blind, a TOTÀI, 7 .7 O rcterân or veteran's spouse, or art unable to pay taxes due to poverty or other good causc, you mey be eligible for a trx exemption, credit. INTEREST AT 12.OOO/O abatement or deferral. t'or details and application infornration, contact the PER ANNUM CHARGED Selecfmen's Office - PO Box 13\ il{oultonborougho NH 03254. AFTER JULY 1,2O1O The taxpayer may, by ìVtarch I following the date of final notire of tax and not afterrvards, apply ín rvriling to the Selectmen or Assessor for a tax abaternent.

Checks returnrd for insufficient funds rvill be subject to a charge of $25.{X} plus collection charges. If -r'ou have sold this properly, plea-se forward thls bill to the new owner,

KILN000175 A Review of the Current FHA Condominium Approval Process In accordance with the passage of the Housing and Economic Recovery Act (HERA) of 2008, the Federal Housing Administration (FFIA) has been using a new approval process for condominium projects. Lenders have two options to get projects approved and the spot approval process has been eliminated. (See Mortgagee Letters 2009-46A and 2009-468)

Optíon One HUD Review and Approval Process (HRAP). Optíon Two Direct Endorsement Lender Review and Approval Process (DELRAP). This option is available only to lenders who have unconditional Direct Endorsement authority and staff with knowledge and expertise in reviewing and approving condominium projects.

The processing options are applicable to condominium developments that are proposed or under construction, existing construction or conversions. The following projects will be ineligible for approval: condominium hotels or "Condotels," timeshares or segmented ownership projects, houseboat projects, multi-dwelling unit condominiums and all projects not deemed to be used primarily as residential. Project approval is not required for FHA-to-FHA streamline refinance transactions or FHAÆIUD Real Estate Owned (REO) Division sales.

CATIC@ does not maintain a list of projects that have received FHA approval. IIUD Requírementsfor FHA CertíJicatíon (Partial Líst) 1) At least 50% of units must be owner occupied. 2) No more than 15% of units can be delinquent in their association fee payments (more than 30 days past due). 3) No more thanl}Yo of units can be owned by one investor. This limitation also includes a developer that may rent out vacant and unsold units. 4) No more than 25Yo of the total floor areacanbe commercial space. 5) Right of first refusal may be in the bylaws, but cannot violate the Fair Housing Act. 6) Mortgagees must review the homeowners'association budget. One important budget criterion is that at least 10% of the budget shall fund replacement reserves for capital expenditures and deferred maintenance. Many association budgets do not meet this criterion.

If, as part ofyour representation of a buyer, you are asked to give the lender an opinion letter as to any of the foregoing, the Association or its management company should be able to supply most or all of this inþrmation.

Maximum Number of FHA-Insured Loøns in a Project Note that after an association is FHA-certified, there are still limits on the number of units that can be mortgaged by an FHA-insured loan. Here are the current limits: Prior to January lr20ll - Concentration has been increased to 50% of units. FHA will "consider" increasing to l00o/o if certain criteria are met. On snd after January 1, 20ll - No more th^î30% of writs can have FFlA-insured loans. (For projects with three or fewer units, only one r¡nit can have an FHA-insured loan,)

KILN000176 Certífication to Løst Only Two Years A certihcation is valid for two years. This means that all associations will repeat the certification process every two years to remain FHA-approved. Approvals for condominium projects (including those projects currently on the list) will expire two years from the date of placement on the list of approved condominiums. Further participation in the progr¿rm after this two-year period will require recertification to determine that the project is still in compliance with HUD's owner-occupancy requirement and that no conditions currently exist which would present an unacceptable risk to FHA. Items that should be given consideration are: 1) Pending special assessments, 2) Pending legal action against the condominium association, or its officers or directors,3)Hazard insurance, liability insurance and, when applicable, flood insurance.

KILN000177 U.S. DEPARTMENT OF HOUSING AND URBAI{ DEVELOPMENT WASHTNCTON DC 20410-8000

ASSISTANT SECRETARY FOR HOUSING. FEDERAL HOUSING COMMISSIONER

November 6,2009 MORTGAGEE LETTER 2W946 A

TO: ALLAPPROVEDMORTGAGEES

SIIBIECT: Temporary Guidance for Condominium Policy

In Mortgagee Letter 200946 B, the Federal Housing Administration (FHA) announced the permanent baseline guidance for condominit¡m project eligibility. This Mortgagee Letter (ML) waives five provisions of that guidance and serves as a temporary directive to address current housing market conditions. This temporary guidance is effective for all FHA case numbers assigned on or after December 7,2009 through Decernber 31,2010, except as noted for the "Spot Loan" Approval Process. FIIA reserves the right to modifr, suspend or terminate the guidance contained in this docunent if analysis of condominium mortgage performance indicates that the insurance fund is at risk.

I. '6SDot Loantt Apnroval Process

Mortgagee Letter 2009468 eliminated the Spot Loan Approval Process as defined in Mortgagee Letter 199641for all FHA case number assignments effective on or after December 7 , 2009. However, to address concerns involving the volatility in the condominium market, the new effective date for the eliminatiel of this practice is for all FHA case number assignments on or after February 1,2010. FHA may perform additional monitoring to ensure compliance with the "Spot Loan" Approval Process. tr. FllAConcentrationRequirements

The FHA concentation requirement defined in ML 2009-46 B will be increased temporarily to 50 percent.

Exceptions to 50 percent Concentration Level. The FHA concentration maybe increased up to 100 percent if the project meets all of the basic condominium standards plus the additional items stated below:

¡ The project is 100 percent complete and construction has been completed for at least one year, as evidenced by issuance of the final or temporary/conditional certificate of occlrpancy for last unit conveyed;

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KILN000178 2

. 100 percent of the units have been sold and no entity olvns more than 10 percent of the units in the project (for projects with fewer than 10 units, single entity may o\ryn no more than l unit); . The project's budget provides for the firnding of replacement reserves for capital expenditures and deferred maintenance in an account representing at least 10% of the budget; o Control of the Homeowners Association has tansferred to the owners; and o The owner-occupancy ratio is at least 50 percent.

Note: New constuction and conversions a¡e not eligible forthis excqltion. m. Owner-OccupancY Requirements

At least 50 percent of the units in a project must be owner-occupied or sold to owners who intend to occupy the units. For proposed, under construction, or projects still in their initial marketing period, FIIA will allow a minimum owner occupancy a:nount equal to 50 percent of the number ofpresold units.

Vacant or tenant-occupied real estate owned (REOs), including properties that a¡e bank owned may be excluded from the calculation of the required owner-occupancy percentage (should be removed from both the numerator and denominator).

IV. PreSaleReouirements

In the case of new construction, the pre-sale requirement defined in ML 2009-46 B will be reduced temporarily to 30 percent. Per ML 2009-46 B, the pre-sale percelrtage must be documented as follows:

o Copies of sales agreements and evidence that a mortgagee is willing to make the loan; . Evidence thatmits have closed and are occupied; OR ¡ Infonnation from a developer/builder that lists all of the units already sold, under contract, or closed (e.g. a spreadsheet, chart, or listing used for the company's own ûacking purposes) that is accomp¡nisd by a signed certification from the developer (Attachment F of ML 2009-468).

KILN000179 V. X'lorida Condominium Proiect Approval

All requests for approval of condominir¡m projects located in Florida will require submission to the Atlanta Homeownership Center for review, under the HUD Review and Approval Process (Iü,AP). These projects are not eligible for approval using the Direct Endors'ement Lender Review and Approval Process (DELRAP), defined in ML 2009-468.

If you have questions regarding this Mortgagee Letter, please call the FI{A's Resource Center at 1-800-CALLFHA (1-800-225-5342). Persons with hearing or speech impairments may access this nr¡nber via TDDÆIY by calling 1-877-TDD-2HLID (l-877-833-2483).

Sincerely,

David H. Steve,ns Assistant Secretary for Housing- Federal Housing Comm i ssioner

KILN000180 KILN000181 U.S. DEPARTMENT OF IIOUSING Aì\ü) T]RBAII DE\IELOPMENT WASHINGTON, DC 2O4IO.8OOO

ASSISTANT SECRETARY FOR HOUSING- FEDERAL HOUSING COMMISSIONER

November 6,2009 MORTGAGEE LETTER 2009.46 B

TO: ALL APPROVED MORTGAGEES ALL FHA ROSTER APPRAISERS

STIBJECT: Condominium Approval Process for Single Family Housing

In accordance with the passage of the Housing and Economic Recovery Act of 2008 (IIERA), the Federal Housing Administation (FHA) is implementing a new approval process for condominium projects and insurance requirements for mortgages on individual units, as authorized under Section 203(b) of the National Housing Act. The requirements of this Mortgagee Letter are effective for all case numbers assigued on or after December 7,2009, except as noted. This Mortgagee Letter revises and consolidates existing guidance, and therefore replaces Mortgagee Letter 2009 -I9.

FHA will now allow lenders to determine project eligibility, review project documentation, and certiff to compliance with Section 203(b) of the NHA and 24 CFR 203 of FHA's regulations. FHA will continue to maintain a list of approved condominium projects. Lenders will be required to retain all the project legal docnments, contracts, conveyances, plats, plans, insurance coverage, presale and owner occupancy conditions and other documentation in connection with their review and approval of the condominium project.

PROJECTAPPROVAL

Approval Processing Options

A. Lenders will have two condominium project approval processing options. The applicable documentation requirements will be the same for each option:

L HUD Review and Approval Process (HRAP). 2. Direct Endorsement Lender Review and Approval Process (DELRAP), outlined in this Mortgagee Letter. This option is only available to lenders who have unconditional Direct Endorsement authority and staff with knowledge and expertise in reviewing and approying condominium projects.

Under DELRAP, lenders must provide the condominium approval or denial documents to FHA within frve (5) business days of final disposition. These documents must be uploaded wngpdfformat tbrough FHA Connection.

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B. The processing options stated above will be applicable to condominium developments l that are:

1. Proposed orUnder Constnrction; 2. Existing Constuction; or 3. Conversions.

C. Lenders who a¡e eligible to and do process condominium approvals under DELRAP may exercise the option, at their discretion, to submit ¿ seadsminium project for approval under the HRAP.

II. Elieible Proiects

The Condominium Project has been declared and exists in full compliance with applicable State law requirements of the jurisdiction in which the condominir¡m project is located, and with all other applicable laws and regulations.

III. Inelieible Proiects

A. Condominium Hotel or "Condotels" B. Timeshares or segmented ownership projects C. Houseboat projects D. Multi-dwelling unit condominiums [.e. more than one d¡vslling per condominium

unitl I E. All projects not deemed to be used primarily as residential '

IV. General Requirements

A. Site Condominiums (effective June 12, 2009)

Condominium project approval is E!required for Site Condominiums. Site Condominiums are defined as single family totally detached dwellings (no shared garages or any other attached buildings) encumbered by a declaration of condominium covenants or condominium forrn of ownership. Site Condominiums that do not meet this definition will require project approval. See Loan Approval section forprocessing and doct'mentation requirements forunit financing of Site Condominiums.

. Manufactured Housing Condominium Projects (MHCPs) may not be treated as Site Condominiums; these projects require approval under HRAP. ¡ Modular homes are processed as single family homes for insurance purposes and are eligible to be treated as Site Condominiums as long as they meet the stated definition for site condominiums.

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B. Envi¡onmental Review Requirements

If a lender elects to use the HRAP option, then envi¡onmental reviews will not be required for projects that, at 1¡s time that condominium project approval is requested, have progressed beyond a stage of construction where HUD has any influence over the remaining uncompleted construction. This occurs when:

o a condominium plat or similar developmentplan and any phases delineated therein have been reviewed and approved by the local jurisdiction and, if applicable, recorded in the land records, and . the construction of the project's infrastructure (streets, stormwatermanagement, water and sewage systems, utilities), and facilities (e.g., parking lots, community building, swimming pools, golf course, playground, etc.) and buildings containing the condominium units has proceeded to a point that precludes any major changes.

Environmental reviews will not be required for condominium projects approved using the DELRAP option. Ifthe appraiser identifies an environmental condition or the lender is awaÍe of an existing environmental condition through remarks provided on the Builder's Certification, Form HÍJD-92541, the appraisal or other known documentation, the lender must avoid or determine that there are mitigants to address the following conditions before completing its review process:

1. The project is located in a Special Flood HazardArea designated on a Federal Emergency Management Agency flood map.

2. Potential noise issues, where the property is located within 1000 feet of a highway, freewa¡ or heavily traveled road, within 3000 feet of a rail¡oad, or within one mile of an airport or five miles of a military airfield.

3. The property has an unobstructed view, or is located within 2000 feet, of any facility handling or storing explosive or fire-prone materials.

4. The property is located within 3000 feet of a dump or landfill, or of a site on an EPA Superfund (l.tPL) list or equivalent state list, or a Phase I Environmental Site Assessment indicates the presence of a Recognized Environmental Condition or recommends further (Phase II) assessment for the presence of contaminants that could affect the site.

5. The property has any hazards or adverse conditions listed in Section 1.f. of the Builder's Certification, including, but not limited to, high ground water levels, unstable soils, or earth fill.

6. The project is located in a wetland designated on National Wetlands Inventory maps or designated by State or local authorities.

Register of Historic Places or is within a historic

KILN000184 8. The appraiser or DE lender is aware of any other condition that could adversely affect the health or safety of the residents of the project' V. ProiectElieibilitvRequirements

The following requirements apply to all condominium Project approvals:

L MÍnimum number of units: Projects must consist of two or more units.

2. fnsurance Coverage: Projects must be covered by hazard and liability insurance and, when applicable, flood and fidelity insurance (See Section VI, Insurance Requirements).

3. Right of First Refusal: Right of frst refusal is permitted unless it violates discriminatory conduct under the Fair Housing Act regulation at 24 CFR part100.

4. Commercial Space: No more than21 percent of the property's total floor area in a project can be used for çommercial purposes. The commercial portion of the project must be of a nature that is homogenous with residential use, which is free of adverse conditions to the occupants of the individual condominium units'

5. Investor Ownership: No more than 10 percent of the units may be owned by one investor. This limitation also applies to dev ly rent vacant and unsold units. For no single ) entity may own more than one"oodo-ioin- unit within the project; all units, coÍtmon elements, and facilities within the project must be 100 percent complete.

6. Delinquent Home Owners Association (IIOA) I)ues: No more than 15 percent of the total units can be in arears (more than 30 days past due) of their condominium association fee payrnents.

7. Presales: At least 50 percent of the total units must be sold prior to endorsement of a mortgage on any unit. Valid presales include:

o Copies of sales agreements and evidence that a mortgagee is willing to make the loanr; o Evidence that units have closed and are occupied; OR . Infonnation f¡om a developer/builder that lists all of the units already sold, under contract, or closed (e.g. a spreadsheet, chart, or listing used for the company's own tracking purposes) that is accompanied by a signed certification from the developer (Atüachment F)'

I ) Secondary residences can only be included if it meets the requiremenls of 24 CFR 203.18(Ð(2)'

KILN000185 8. Owner-occupancy Ratios: At least 50 percent of the units of a prgject must be owner-occupied or sold to owneft¡ who intend to occupy the rrnits.z Forproposed, under construction orprojects still in their initial marketing phase, FHA will allow a minimunt owner occupancy amount equal to 50 percent of the number of presold units (the minimum presales requirement of 50 percent still applies).

9. Legal Phasing: Legalphasing is permitted for condominium processing. It is recommended that developers submit all known phases for initial project approval. FHA will not accept market phasing in lieu of legal phasing.

For vertical buildings, legal phasing is acceptable if;

a. The floors are legally phased in groupings of no less than five floors; b. At least a temporary certificate of occupancy has been obøined and all common areas and amenities have been completed; AI\D c. A third party completion bond has been obtained.

For purposes of calculating the owner-occupancy percentage and FHA concentration:

a. On multi-phased projects the owner-occupancy percentage is calculated on the first declared phase and cumulatively on subsequent phases if the ownership of the condominium project remains the same. b. If multi-phasing includes separate ownership per phase, each phase is calculated individually. c. In single-phase condominium project approval requests, all units are used in the denominator when calculating the 50 percent owner-occupancy percentage.

10. FIfA Concentration: FHA will display the concentration infonnation for each approved çe1demìnium development on the approved condominium listing, which can be found on both FHA Connection and on the public website at www.hud.sov. The concentration level will be based on case numbers assigned on units in a project; FHA will not issue new case numbers once the 30 percent concentration level þlus a small tolerance to accommodate for some fall-out) has been reached in any particular development.

a. Projects consisting of th¡ee or fewer units will have no more than one unit encumbered with FHA insurance. b. Projects consisting of four or more units will have no more than 30 percent of the total units encumbered with FHA insurance. c. Calculation of the level of FI{A concentration in a project declared with legal phases will follow the same methodology as owner-occupancy, described above.

11. Budget RevÍew: Mortgagees must review the homeowners' association budget (the actual budget for established projects or the projected budget for new projects) for all projects. This review must detennine that the budget is adequate and:

2 Units sold to owners who intend to occupy the units must follow the requirements of a valid presale.

KILN000186 6

o Includes allocations/line items to ensure sufTicient funds are available to maintain and preserve all amenities and features unique to the condominium project; o Provides for the funding of replacement reserves for capital expenditures and deferred maintenance in an account representing at least 10% of the budget; and o Provides adequate funding for insurance coverage and deductibles (see Section VI, Insurance Requirements).

In cases where the budget documents do not meet these standards, the mortgagee may request a reserye study to assess the financial stability of the project. The reserve study cannot be more than 12 months old. When reviewing the reserve stud¡ consideration must be given to items that have been replaced after the time that the reserve study was completed.

In lieu of the actual budget documents, mortgagees may request and rely on Fannie Mae form l}T3a,Analysis of Annual Income and Expenses - Operating Budget, executed by an authorized representative of the seller/servicer, orrvners association, or management agent. vr. Insurance Requirements

A. The condominium project must be covered by hazard, flood, liabilþ and other insurance required by state or local condominium laws or acceptable to FHA as deflrned below:

o Hazard Insurance: The homeowners association (HOA) is required to maintain adequate "master or blanket" property insurance in an amount equal to 100% of current replacement cost of the condominium exclusive of land, foundation, excavation and other items normally excluded from coverage. If the HOA does not maintain 100% coverage, the unit owner may not obtain "gap" coverage to meet this requirement. o HO-6 Coverage: In cases where the master policy does not include interior unit coverage, including replacement of interior improvements and betterment coverage to insure improvements that the borrower may have made to the unit, the borrower must obtain a "walls-in" coverage policy (HO-6 policy). o Liability Insurance: The HOA is required to maintain comprehensive general liability insurance covering all of the coûrmon elements, commercial space owned and leased by the owner's association, and public ways of the condominium project. o Fidelity BondÆidelity Insurance: Fidelity BondÆidelity Insurance is required for new and established condominium projects with 20 or more units. The HOA must maintain this insurance for all officers, directors, and employees of the association and all other persons handling or responsible for ñrnds administered by the association. The coverage must be no less than a sum equal to three months aggregate assessments on all units plus reserve funds.

)

KILN000187 o Flood Insurance: Insurance coverage equal to the replacement cost of the project less land costs or up to the National Flood Insurance Program (¡mp) standard of $250,000 per unit, whichever is less. In the insuring of a residential condominium building in a regular program community, the maximum limit of building coverage is $250,000 times the number of units in the building (not to exceed the building's replacement cost). The HOA, not the borrower or individual unit owner, is responsible for obtaining and maintaining adequate flood insurance under the NFIP on buildings located in a Special Flood HazardArea (SFHA).The flood insurance coverage must protect the interest of borrowers who hold title to an individual unit as well as the common areas of the condominium project. If the FHA Roster Appraiser reports that buildings in a condominium project are located in a SFHA the lender is responsible for ensuring that the HOA obtains and maintains adequate flood insurance on buildings located within the SFHA, per Mortgagee Letter 2009-37 .

B. Determining Need for Flood Insurance

Mortgagees must determine whether the property improvements (dwelling and related structures/equipment essential to the value of the property and subject to flood damage) are located in a 100-year flood plain. If the property is in a 100-year flood plain, flood insurance is required, per Mortgagee Letter 2009-37. To demonstrate and document that the property is not located in a 100-year flood plain and not subject to flood insurance requirements, the mortgagee must obøin:

o A final Letter of Map Amendment (LOMA) or o A final Letter of Map Revision (LOMR)

VII. Manufactured Housins Condominium Proiects IMHCP) (effective June 12, 2009)

Pursuant to FIERA, manufactured housing condominium projects are now eligible for FHA mortgage insurance. All outstanding and current FHA Manufactured Housing individual unit requirements remain applicable for both Home Equity Conversion Mortgages (HECM) and forward mortgages, including elevations in flood zones and foundation requirements. MHCPs must be submitted to the applicable Homeownership Center (HOC) for review and approval (HRAP). MHCPs are ineligible for DELRAP processing and may4! be processed as site condominiums.

See Loan Approval section for appraisal reporting requirements.

KILN000188 8

\IIIL Condominium Conversions

Conversion to condominiums occurs in those projects which involve changing the title of an existing stucture generally under one title, to property that is separated into units so that the title to mostunits can be held separately. Changes to condominium conversion requirements are defined below:

1. The one-year waiting period requirement for conversions is eliminated; 2. In the event that FHA is insuring a mortgage on a unit and an undivided interest in the common elements on a project undergoing remodeling or rehabilitation, the entire condominium project, including the common facilities, must be 100 percent completely built before any mortgage may be endorsed. Escrow provisions will be permitted for weather related delays for common areas only. 3. Conversions of properties from non-residential or from rental, whether tenant- occupied or vacant, will be treated as new consfuction. rx.

This Mortgagee Letter now perrnits condominium processing consistent with guidance described in Mortgagee Letter 200I-27.

A. In cases where a building permit and a certificate of occupancy (or its equivalent) are issued by a local jurisdiction that performs a minimum of three inspections (typically the footing, framing and final) neither an Early Start Letter nor a HUD approved ten- year warranty plan is required. For those jurisdictions that do not issue a building permit (or its equivalent) prior to construction and a Certificate of Occupancy (or its equivalent) upon completion of construction, a condominium unit that is one year old or less must have either an Early Start Letter (with a minimum of three inspections by an FIIA Roster Inspector) orbe covered by a HUD-approved ten-year warranty plan (with a final inspection by a FHA Roster Inspector) to be eligible for high-ratio mortgage insurance. Projects are still required to be on the FHA-approved condominium list.

B. FHA will require the completion and retention of the following documents when processing nerv construction condominium project approvals :

. Builder's Certifrcation of Plans, Specifications and Site, forrn HÍJD-92541 o Builder's Warranty, form HUD-92544 o Building Permit (or its equivalent) ¡ Final Certificate of Occupancy (or its equivalent)

C. FHA will accept a temporary/conditional Certificate of Occupancy for new construction and conversions that require substantial rehabilitation under the following circumstances:

¡ All coürmon areas and amenities for the project must be completed. o The temporary/conditional Certificate of Occupancy thafwasjssued sþarly indicates that the unit is habiøble and eligible for immediate occupancy.

KILN000189 o The jurisdiction that is issuing the temporary/conditional Certificates of Occupancy has in place a standard protocol whereby permanent certificates are issued and maintained.

X. General Processine Steps for DELRAP or HRAP

A. Determine acceptability of the site and location of the project. Refer to Attacbment A, Condominium Project Approval Matrix for the list of documents that the project review package must contain.

B. Review the project's financial and legal documents; if acceptable, authorized personnel will sign and date the Lender Certification of Condominium Requirements (Attachment B).

o While FHA expects lenders to submit recorded documents with the condominium project approval package, unrecorded properly executed documents are acceptable in the initial request for project approval. o If unrecorded documents are utilized, no loan can be insured in the project until the recorded documents have been received and the applicable approval data updated. o Unrecorded documents for conversions will be acceptable if the conversion was a non-occupied rental building (i.e., warehouse or vacant building converted to a condominium regime) that meets all applicable requirements. o Wheneverunrecorded documents are submitted, the lender (for HRAP), DELRAP lender or builder/developer must provide a certification with the final recorded documents and description of any changes from original unrecorded documents.

C. Determine the project's budget is adequate or meets the alternative standards in Project Approval Section, V, 11.

D. Retain and maintain all documents used to review and approve the project for a period ofthree years from the date ofproject approval.

E. If a project is listed as Rejected or Withdrawn on the FHA-approved condominium list, the project will not be eligible for reconsideration unless the request meets the following:

o Project was rejected or withdrawn < 12 months: nedadditional information may be submitted to HUD for reconsideration only under HRAP processing based on the rejection or withdrawal date; o Project was rejected or withdrawn > 12 months: nedadditional information may be submitted to HIID for processing trnder HRAP or may be considered by the lender (and ultimately transmitted to HUD) in the case of projects undergoing DELRAP review.

NOTE-Ifa projeet is no longerapproved ordoes not rneet approval crite+iatthen I only a FHA-to-FHA streamline ref,rnance without an appraisal is allowed.

KILN000190 l0

F. Second and subsequent lenders that submit a unit for insurance in a project that is listed on the FHA-approved condominium list a¡e not required to complete any further approval process. However, as part of loan-level review, FHA will require the lender to certify (Attachment C) it has no knowledge of circumstances or conditions that might have an adverse effect on the project or cause a mortgage secured by a unit in the project to become delinquent. FHA will also require the lender to certiff (Attachment C) that it has reviewed and verified the condominium project's continued compliance with the initial approval requirements regarding investor ownership, percentage of owners in ¿urears for condominium association fees, owner-occupancy rate and FHA loan concentration rate, and the lender certifies (Attachment C) that the condominium project continues to comply with FHA requirements.

G. Subsequent phases being approved by a different lender must follow the general procedwes listed under this Section of the ML. The original lender must also follow these general procedures but will have already satisfied some of the steps listed.

H. All required certifications, as applicable, must be included in the FHA case binder submitted for insurance endorsement.

I. For both new construction and conversions the developer should complete fonn HíJD-92541, Builder's Certification of Plans, Specification and Site. If the developer/builder intends to market five or more units within the next 12 months with FHA mortgage insurance and block ll"a,b, c, or d" is not checked, the developer/builder is required to complete Form HUD-935.2C, Affi¡mative Fair Housing Marketing Plan- Condominium or Cooperatives. This completed form must be submitted to the Director of the Processing and Underwriting Division in the jurisdictional HOC for approval þrior to project approval).

J. Envi¡onmental reviews will be required only for proposed and under construction project approvals submitted under the HRAP option consistent with the Environmental Review Requirements listed in Project Approval section, numeral fV, B. Envi¡onmental review is not required under DELRAP, but the lender must take necessary actions to avoid or deterrnine that there are mitigants to addressing identified environmental conditions prior to completing its project review.

K. Transfer of control of the Homeowners Association shall pass to the unit owners within the project no later than the latest of the following:

1. 120 days after the date by which 75 percent of the units have been conveyed to the unit purchasers;

2. Three years after completion of the project evidenced by the first conveyance to a unit purchaser; OR

3. The time f¡ame established under state or local condominium laws if specific provisions regarding transfer of control exist.

KILN000191 ll

)(I. Certification for Initial Proiect Approval

A. Lender Certification

Lenders must provide certifications on company letterhead signed by a company authorized representative (signature stamps or electronic signatures are not authorized) that:

1. The eligible condomini rm project complies with applicable FHA requirements addressed within this ML; 2. All condominium legal documents meet HUD regulations, state and local condominium laws; and 3. Pre-sale, owner occupancy and FHA concentration ratios are met.

B. Developer Certification

The developer/builder must provide a certiftcation (Attachment E) on company lefferhead signed and dated by an authorized representative of the developer/builder (siguature starnps or electronic signatures are not authorized) which states that:

1. The eligible condominium project complies with all applicable FHA requirements addressed in this ML; and 2. All condominium documents meet all HUD requirements, and state and local requirements.

NOTE: FHA will not require an attomey's certification. However, lenders and developers/builders may obtain this as part of their own due diligence process. Lenders as well as developers/builders are reminded that this document will not replace other required condominium certifications they are required to execute (e.g., Applicable Appendices B, C, E and F of this Mortgagee Letter).

XII. Recertification of Proiect Approvals

Condominium Project approvals will expire two years from the date of placement on the list of approved condominiums. Further participation in the program after this two-year period has expired will require recertification to detennine that the project is still in compliance with HUD's owner-occupancy requirement and that no conditions currently exist which would present an unacceptable risk to FHA. Items that must be given consideration are:

1. Pending special assessments, 2. Pending legal action against the condominium association, or its officers or directors, and 3. Adequate hazard,liability insurance, and when applicable, flood insurance coverage.

KILN000192 l2

LOAI\ APPROVAL

I. Mortsage Insurance for Individual Unit Financins

All applicable, outstanding and any additional FHA mortgage insurance requirements not defined in this ML must be satisfied for individual units.

IL Recordation of Documents

If unrecorded documents were submitted along with other required documentation for initial project approval, no loan can be insured in the project until the recorded documents a¡e received and the applicable approval data updated.

IU. Insurance Requirements

A. Hazard Insurance

For forward mortgages, in cases where the master policy does not include interior unit coverage, including replacement of interior improvements and bettemrent coverage to insure improvements that the borrower may have made to the unit, the borrower must obtain a "walls-in" coverage policy (HO-6 policy).

For Home Equity Conversion Mortgages (reverse mortgages), the borrower must obtain and maintain hazard insurance equal to the value of insr¡rable property improvements, perHandbook4235, REV 1, Chapter 6.

B. Flood Insurance

For both forward and reverse mortgages, lenders must ensure that the Homeowners Association (HOA), not the individual owner, obtains and maintains adequate flood insurance under the National Flood Insurance Program on buildings located within a Special Flood Hazard Area. The insurance coverage must protect the interest of borrowers who hold title to an individual unit as well as the common areas. See Section VI, Insurance Requirements.

IV. Certifications

If a project has been previously approved, the lender must certify that it has reviewed and verifred the condominium project's continued compliance with the initial approval requirements regarding investor ownership, percentage of owners in arrears for condominium association fees, owner-occupancy rate and FIIA loan concentration rate, and the Lender certifies that the condominium project continues to comply with FIIA requirements.

KILN000193 l3

V. FHA-to-FHA Transactions

Project Approval is not required for:

a. FHA-to-FHA steamline refinance transactions or b. FHAÆIUD Real Estate Owned (REO).

VI. Site Condominiums

Although processed as Section 203(b) loans, the applicable ADP codes for Site Condominiums are 731 (Adjustable Rate Mortgages) and,734.

Appraisal data is collected and reported on Fannie Mae form 1004, in accordance with the Valuation Protocols, Appendix D of HUD Handbook 4150.2.

The Condominium Rider (Attachment D) must be included in the FHA case binder submitted for insurance endorsement.

VII. ManufacturedHousineCondominium

The appraisal reporting requirements fs¡ sonfleminium manufactured homes are:

1. Appraisal must be reported on the Manufactured Home Appraisal Report (Fannie Mae Form 1004C). 2. Subject condominium project must be inspected and the Project Information section of the Individual Condominium Unit Appraisal Report (Fannie Mae Fomr 1073) must 6s ssmpleted and included as an addendum to the appraisal report. 3. Comparable sales must be condominium manufactured homes. Detailed explanations must be provided when search parameters are expanded due to the lack of comparable sales in subject market area.

VIII. "SDot Loan" ADDroval Process

The Spot Loan Approval Process as defined in Mortgage Letter 1996-4I is eliminated. The DELRAP and HRAP have been steamlined to allow foruncomplicated condominium project approvals eliminating the need to approve units on a "spot loan" basis.

KILN000194 l4

LIABILITIES AND MONITORING

Morteaeee Liabilitv

Mortgagees who issue s6nd6minium project approvals using the DELRAP process are responsible for material deficiencies associated with the project approval and any loan they originate and/or underwrite using the applicable project approval.

Mortgagees who rely upon a condominium project approval issued by another mortgagee are responsible for the loan level certification (Attachment C). With this certification, the lenderls confirming that the company has no knowledge of circumstances or conditions that might have an adverse effect on the project or cause a mortgage secured by a unit in the proþct to become delinquent. The lender is also certiffing that it has reviewed and verifreá the condominium project's continued compliance with the initial approval requirements regarding investor ownership, percentage of owners in arrears for coodomioi.rm association fees, owner-occupancy rate and FHA loan concentration rate, and it certifres that the condominium project continues to comply with FIIA requirements.

II. Oualitv Assurance

Monitoring the condominium approval process is critical to the success of the program. Lenders who approve condominium projects utilizing the DELRAP option will be required to submit a copy of the complete condominium project approval package to the applicable Homeownership Center within frve (5) business days of approval. Lenders are required to submit the fi¡st five DELRAP approvals for review. Furtheq to manage FHA's risk, and ensure compliance with all condominium project policy requirements, additional condominium project approvals will be selected for review. The criteria for selection of the additional approvals will be determined and lenders will be notified in future guidance.

IIr. False Certifications

Title 18 U.S.C. 1014, provides in part that whoever knowingly and willfully makes or uses a document containing any false, fictitious, or fraudulent statement or entry, in any matter in the jurisdiction of any department or agency of the United States, shall be fined not more than 51,000,000 or imprisoned for not more than 30 years or both. In addition, violation of this or others may result in debarment and civil liability for damages suffered by the Department.

KILN000195 l5

TRANSITION STRÄTEGY

FHA will move all currentþ approved condominium projects to the new approval list and FFIA Connection database. The following requirements are applicable based on the date of the initial project approval. Additional guidance on new data entry requirements will be issued in a sqlarate ML.

. Projects that received approval prior to October 1, 2008, will require recertification on or before December 7,2010.

o Projects that received approval between October 1, 2008 through December 7,2009, will follow the recertification requirements defined in the Project Approval Section, xru.

Recertification of approved condominium projects may be processed by HUD using HRAP or by a mortgagee under DELRAP. The DELRAP option is only available to lenders who have unconditional Di¡ect Endorsement authority and staffwith knowledge and expertise in reviewing and approving condominium projects.

If you have questions regarding this Mortgagee Letter, please call the FHA's Resource Center at 1-800-CALL-FHA (l-800-225-5342). Persons with hearing or speech impairrnents may access this number via TDDÆTY by calling L-877-TDD-2IILJD (1-877-833-2483).

Sincerely

David H. Stevens Assistant Secretary for Housing- Federal Housing Commissioner

Attachments

KILN000196 t6

Attachment A

míníum Proiect APProval Matrìx

I All Condominium Legal Documents

.a Recorded Plat Map indicating Leeal Description

Recorded Covenants. Conditions and Restrictions b ' (CC&R's)

c SiCned and Adopted Bylaws

. d Articles of Incorporation filed with the State

e Recorded Condominium Site Plans

2 Plan or Evidence of Transfer of Control

3 Proposed or Actual Budset

4 Management Aqreement. if applicable

Equal Employment Opportunitv Certifrcate (Fonn 5 HUD 92010)

Builder's Certification of Plans. Specifications 6 and Site. Form HUD-92541

z FEMA Flood Map

8 Estimated Construction Completion Date

g Outstanding or Pending Litieation Analvsis

10 Pendins Special Assessment Analysis

KILN000197 t'l

Attachment B

LEI\DER CERTIFICATION TO COI\DOMIMUM REQT'IREMENTS

The undersigned hereby certifies that (1) the Lender has reviewed the project and it meets all requirements of Section 203(b) of the National Housing Ãct,24 CFR part 203, State and local condominium laws and any Mortgage Letters thereto applicable to the review of condominiums; (2) to the best of his or herknowledge and belief, the infonnation and statements contained in this application are true and correct, and (3) the Lender has no knowledge of circumstances or conditions that might have an adverse effect on the project or cause a mortgage secured by a unit in the project to become delinquent (including but not limited to: defects in construction; substantial disputes or dissatisfaction among unit owners about the operation of the project or the owner's association; and disputes concerring unit owners; rights privileges, and obligations). The undersigned understands and agrees that the Lender is under a continuing obligation to inform HUD if anymaterial infonnation compiled for the review and acceptance of this project is no longer true and correct.

Authorized Lender Representative Date (Signature and Title)

Title 18 U.S.C. l014,provides inpartthatwhoeverknowinglyandwillfullymakes oruses a document containing any false, fictitious, or fraudulent statement or entry, in any matter in the jurisdiction of any department or agency of the United States, shall be fined not more than $ I ,000,000 or imprisoned for not more than 30 years or both. In addition, violation of this or others may result in debarment and civil liability for damages suffered by the Deparhent.

KILN000198 t8

Attachment C

LENDER CERTIFICATION FOR IIV)TVIDUAL UNIT FINANCING

The undersigned hereby certifies that (1) the Lender has verified the condominium unit in connection *itn tnis loan file has been verified to be in a project that appears on FHA's list of approved condominium projects; (2) to the best of his orher knowledge and belief, the information and state,lnents contained in this application are tue and correct; (3) the Lender has no knowledge of circumstances or conditions that might have an adverse effect on the project or cause a mortgage secured by a unit in the project to become delinquent (including but not limited to: defects in construction; substantial disputes or dissatisfaction among unit owners about the operation of the project or the owner's association; and disputes concenring unit owners; rights privileges, and obligations); and (a) the Lender has reviewed and verified the condominium project's continued compliance with the initial approval requirements regarding investor õwnership, percentage of owners in arears for condominium association fees, pre-sale ratio, owner-occupancy ratio, FHA loan concentration ratio, and the Lender certifies that the condominium project continues to comply with FHA requirements'

Authorized Lender Representative Date (Signature and Title)

Title 18 U.S.C. 1014, provides in part that whoever knowingly and willfully makes or uses a document containing any false, fictitious, or fraudulent statement or entry, in any matter in the jurisdiction of any department or agency of the United States, shall be fined not more than -$ of this or 1 ,000,000 or imprisoned for not more than 30 years or both. In addition, violation others may result in debannent and civil liabilþ for damages suffered by the Deparbnent.

KILN000199 T9

Attachment I)

CONDOMIMTJMRIDER

THIS CONDOMINIUM RIDER is made tbis day of 20 . and is incorporated into and shall be deemed to amend and zupplement the Mortgage, Deed of Trust or Security Deed ("security Instrument") ofthe same date given by the undersigned ("Borrower") to secu¡e Bonower's Note ("Note") to ("Iænder") of I the same date and covering the Property described in the Security Instmment and located ât:

[Property Address]

The Property includes a unit in, together with an undivided interest in the common eleúents of, a condominium project known as:

[Name of Condominium Project]

("Condominium Project"). Ifthe ownsrs association or oth€r entity which acts for the Condominium Project ("Owners Association") holds title to property fo¡ the benefit o¡ use ofits members or shareholders, the Property also includes Borrower's interest in the Owners Association and the uses, proceeds and benefits ofBonower's int€rest.

CONDOMIMUM COVENA¡ITS. In addition to the covenants and agre€ments made in the Security Instrument, Bonower and Iændsr fu¡ther covelant and agree as follows:

So long as the Owners Association maintains, with a generally accepted insuranc€ carrier, a or policy "master" "blanket" in C all improvements now existiug to Iænder and provides insura¡ce lender requires, including fire and other hazards included within the term "extended coverage," and loss by flood, to the extent required by the Secretary, then: (i) Iænder waives the provision in the Security Instrument for the monthly payment to LÆnder of one-twelfth of the yearly premium installments for hazard insurance on the Property, and (ii) Bonower's obligation under the Security Instrument to maintain haza¡d insurance coverage on the Property is deemed satisfied to the extent that tbe required coverage is provided by the Owners Association policy. Borrower shall give Iænder prompt notice ofany lapse in required hazard insura¡ce cover¿ge and ofany loss occurring from a hazard. In the event ofa distribution ofhazard insurance proceeds in lieu ofrestoration or repair following a loss to the Property, whaher to the condominium unit or to the common elemanis, any proceeds payable to Borrower are hereby assigned and shall be paid to Lender for application to the sums secured by this Security Instrument, with any excess paid to the entity legally entitled thereto.

Borrower promises to pay all dues and assessments imposed pursuant to the legal instruments creating and governing the Condominium Project.

IfBorrower does not pay condominium dues and assessments when due, then Lender may pay them. Any amounts disbursed by Lender under this paragraph shall become additional debt ofBonower secured by th other tefms of payment, theseamount erateand shallbepayable, with interest,

BY SIGNING BELOW, Borrower accepts and agrees to the terms and provisions contained in this Condominium Rider.

(SEAL) Borrower

(SEAL) Borrowe¡

IADD ANY NECESSARY ACKNOWLEDGEMENT PROVISTONS.I

KILN000200 20

Attachment E

DEVELOPER/BUILDER CERTIFICATION TO CONDOMINIT]M REQUIREMENTS

The undersigned hereby certifies that (1) the Developer/Builder has reviewed the project and it meets all requirements of Section 203(b) of the National Housing Act,24 CFR 203, State and local condominium laws and any Mortgage Letters thereto applicable to the review of condominiums; (2) to the best of his or her knowledge and belief, the information and statements contained in this application a¡e true and correct, and (3) the Developer/Builder has no knowledge of circumstances or conditions that might have an adverse effect on the project or cause a mortgage secured by a unit in the project to become delinquent (including but not limited to: defects in construction; substantial disputes or dissatisfaction among unit owners about the operation of the project or the owner's association; and disputes conceming unit owners; rights privileges, and obligations). The undersigned understands and agrees that the Developer/Builder is undeì a continuing obligation to inform HUD if any material information compiled for the review and acceptance ofthis project is no longer true and correct.

Authorized Representative Date (Signature and Title)

Title 18 U.S.C. 1014, provides in part that whoever knowingly and willfully makes or uses a document containing any false, fictitious, or fraudulent statement or entry, in any matter in the the United States, shall be fined not more than jurisdiction-$1,000,000 of any department or agency of or imprisoned for not more than 30 years or both. In addition, violation of this or others may result in debarment and civil liability for damages suffered by the Deparhnent'

KILN000201 21

Attachment F

DEVELOPER/BUILDER PRESALES CERTIFICATION

The undersigned hereby certifies that in lieu of providing (1) Copies of sales agreements and evidence that a mortgagee has issued approval; or (2) Evidence that units have closed and are occupied; the Developer/Builder has attached to the signed and dated certification, a list documenting all units sold, under contract or closed (i.e., and excel spreadsheet). This information will be used to document the required minimum presale requirement of 50 percent.

Authorized Representative Date (Signature and Title)

) fitle 18 U.S.C . 1014, provides in part that whoever knowingly and willfully makes or uses a document containing any false, flrctitious, or fraudulent statement or entry, in any matter in the jurisdiction of any department or agency of the United States, shall be fined not more than $1,000,000 or imprisoned for not more than 30 years or both, In addition, violation of this or others may result in debarrnent and civil liability for damages suffered by the Department.

KILN000202 Post Office Box 404 Center Harbor, NH 03226 January 28,2011

Board of Directors Kilnwood on Kanasatka Condominium Association Post Offrce Box 380 Center Harbor, NH 03226

Greetings,

Enid had telephoned yesterday asking for information pertaining to the properrty listing for 15 HornbeamHollow which we purchased on March 5ú,2010.

Enclosed are documents pertaining to that listing and sale, but in addition we'll share some information the board may find helpflrl in the reformation proceedings:

1. We originally found the listing for 15 Hombeam Hollow on the NorthernNew England Real nstate Network C¡t¡mng¡,}, www.nneren.com. on June 14ú.,2009. At that time we were perusing residential listings in Wolfeboro, Moultonborough, Center Harbor, Meredith, and Tuftonboro, but deliberately excluding listings for condominiums, multi- family dwellings, and mobile homes.

2. T\e listing number on the NNEREN for 15 Hornbeam Hollow was MLS No. 2772010; Chris Kelly, one of the principals of ReMax Bayside in Meredith, was the listing agent; the listing was for a single family residence.

3. We originally visited the propefy on July 5ft, and because the property met most of orr. pr"r"qoisites and looked promising, we retumed on July 6û. At neither time did either Chris Kelly or our agent Carol Lavigne, ReMær Executives, make mention that this properly was part of a condominium development.

4. We returned home to North Carolina on July 7ú, and shortly thereafter we unexpectedly decamped to San Diego to assist an elderþ family member who had suffered afall. When we returred to North Carolina in early December, we began negotiations to purchase 15 Hornbeam Hollow. Prior to entering those negotiations, we spoke to Hope Kokas in the Town of Moultonborough Tax Assessor's Office to confirm information on the property tax record card which was a part of the listing documents. At no time during this conversation did Ms. Kokas, who was very helpfrrl and thorough, mention that15 Hornbeam Hollow is part of a condominium association.

KILN000203 Board of Directors -2- January 28,2011

5. Our final offer was accepted on January 5ü, and although we had mortgage preapproval for a VA home loan, thatpreapproval was not specific to 15 Hombeam Hollow. In the process of searching the title, our mortgage loan officer discovered that Kilnwood on Kanasatka is a condominium association.

6. Because we \¡/ere seeking a federally backed loan, Kilnwood on Kanasatka had to have abeady been approved by the VA as a condominium association for the loan to go through--and it hadn't been. Otn loan officer informed us she would work with the VA to get Kilnwood added to the VA's list of approved condominium associations, but this process would mean a delay of a month in closing the sale. At that point Chris Kelly worked directþ with our loan ofücer in getting the documents needed for the VA's consideration, and he also arranged for an addendum to the purchase and sale agreement to reflect the delay in closing. Although the seller's representative was not happy about the delay, there was little she could do because the property had not been listed as part of a condominium association; if it had been, we would not have considered it at all.

7. After a lot of hectic activity, the VA added Kilnwood on Kanasatka to its list of approved condominium associations, and our loan officer ordered the appraisal. As you can see on Page 3 of the appraisal, Valerie Kimball, who was the appraiser and who has been appraising in Moultonborough for over 25 years, flatly refused to appraise 15 Hornbeam Hollow as a condominium even if that action resulted in a cancellation of the purchase and sale agreement. We had a direct telephone conversation with Ms. Kimball who informed us that she was not going to sacrifice her professional credentials nor her integrity to appraise 15 Hombeam Hollow as a condominium. In the end Ms. Kimball's appraisal was accepted at face value by the mortgage loan underwriter, and we finally went to closing on March 5û, but not before Allen Rapp kindly and graciously intemrpted his and Ma¡ianne's vacation to fax insurance documents to our loan officer at the last minute.

Upon reading the contents of this letter, a question may arise as to our collective sanity in purchasing a "condominium," but we were so ignorant we believed the word "condominium" as applied to Kilnwood on Kanasatka pertained to those parts of the association each "lot owner" enjoys in common with all the other lot owners!

It is our sincere hope the board will find this letter and the enclosed documents helpful in the reformation process if only because we would not want to envision any other prospective homebuyer(s) encountering the challenges we did in purchasing at Kilnwood.

Sincerely yours, 8.'-f{êW* Joseph E. Fegan

KILN000204 Recent Activity Page 4 of5

Customer DisPlaY Residential 15 Hornbeam Hollow L$37s'ooo 2772OLO Active Hew Hampshirc O3254 \,o, (12) Style: 1 1/2 Story , Conternpo'rary Rooms: I Year Bulll: 1997 Bedroom$ 3 Colon Wh'rte Tot¡l Baths: 4 $ 3,126-81 Full: 3 T.xe€TBD: No 3l4Bahs: 0 Tar Yean 2008 lf¿ Bdrs: 1 Honth¡yAssoe¡: $ Garage Capacíty: 2 LotAGrc: .65 Garage Type: Aüached Lot SqFt: 28,314 Total Fin SqFt: 3,261 Road Frontage: Apx Fin Above Grd: 1,963 Froñtage: Apx Fin Below Grd: 1,298 Acc Type: Stered Foot Print: 26x44

WaterBody TYPe: lake WaterBody Name: Kanasatka bæch/boat slips on Public Rems: A water access home at Kilnwood lardirE trat's ready furyou today. Not eìren 1/1Oth a mile b ttre sady sharecl pfuaC fulufinished ùiã rcnasa*a. This is a p.re"t uã"af¡oñ or ø¡mary liorre. wooOeO lot 2 car garage w/slorage, sseen ænÙt' walkout lorer level, pþnty of sle€ping room in super shape ãld ava¡laHe nd'-"- Dlrectlons: Bean Road to S¡ibley Roâd to K¡lr¡wood to Hornbæm Hollow --ibïÊr- =aüiru 2NoFL 3RDFL ROOtrl rùùS ars-ÈnËin 3RDFL RooM orrs ËAsEuENr lsrFl :Full Bath 1111nBaÚ1 3/4 Bath Iþn Dining Rm 12x18 1 FamllY Rm 16x25 1 Kitchen gx23 I Uving Rm 17 x18 1 1 fllaster BR 14 x 14 1 2nd BR 14x'15 3rd BR 1Ox 10 1 4th BR Other R¡n I OtherRm 2 Other Rrn 3

Amenlties:

Baaement: Construction: Driveway: Elecrr-c: 200 Amp , Cirq.¡it Breaker Appliancee: Ederion Cement, Clapboard

Financing: Foundation: Conc¡ete EnÍy lleating/Cool: Bas€board Hot l/!ãter , Multi Zone GaragelPark: 6+ Parking Space , Attached , Auto Open ' D¡rect ' , Storage Above Wooded Heat Fuel: Gas-Lp/Botüe Lot I'€sc: lendscaped, ROWto \i\hter, Negotiable: Reslrictions: Roads: Association, Gravel Roof: ShingleAsphalt Sewe¡: 12$ Gallon , Concrete, Leact¡ Field , Private Waten Community Fee lncludes: Recreational Water Heaten Gas , Off Boiler Disability: No Book/Pg: 18971 434 Tax Flate: $ 7.66 Tax Cla$s: Tax Reduct 106,1 123 Eldefu: No Vêteran: No Othen No ItaCBlckit-ot Covenant: Yes Arsmt $ 408,200.00 Assmt Yc 2008 Deed: ì¡Vananty Elem Sch: Moultonborough JrJllid Sch: tr,loultonborough Fligh Sch: lärultorÈorough D¡sfrict Cenbel School Academy Acedemy County: Canoll NewGonst: No Source SqFt: Ms¡d Cloaed Date: Excl Saþ: DeveUSubdiv:Kilnwoo'd V¡llagerDintrict: PREPARED BY RobertWichland Email : rc@robrvicfi land.com REMAX Bayside Off. Ph#: (603) 279{Ð79 208 Daniel Webster HighwaY Agt Ph#: (603) 279m79 ext 302 ilered¡th, NH 03253 Cell Ph#: (603) 387-7æ9 Listff Ctuisiopher KeÍy d RE/MÆ( Bays¡de Fax Ph*: (603) 279{Ð83

ìyofmãyfdbelhelis¡lg ag€ncyfurËtbpfopefty' subi¡cttoeno¡s,omiss¡ons,pf¡ors8þ,cñangeqtvåñd¡aratwitho¡tnæ.Theegenqy' ì/ì¡ùbrd CopfOi2oos Ñorinem Ñecr Engþnd Reel Estâte N€{ü,ork, lnc. o6rf Ptt Printed BF RoÙ€rt

DisplayÍng matches 1 through 4 of 4

KILN000205 6127D009 htþ://www.nnerenmls .com/ nneI maildoc/f006kT8402.hünl 208 Daniel Webster Highway Meredith, NH 03253 - 603-279-0079 !': ,

I believe this is the home that you asked about recently and now it is available for you. A vacation home for now, a retirement home or the perfect investment someday. The home is nice but the amenities with the beach, the boat slips, the fishing, the quiet nights, the hot tub, the game room in the lowe¡ level. This tuly is the home for you. rm,æ Ê

7720!0/s37S,OO0 1897 /434 1997 106/ /23

17 xl8 L2xlB

ls Floor Laundry

74xL4w/Bath L4xl.5 10x10 FullyApplianced

16xZS

f ES:93,126.87 Listing Agent: Chris Kelly and Rob Wichland The information on thís shee! although beliwed accurate, is not guaranteed. Measuremeîts are approximaìe. No responsibility is taken for any error, omission o¡ misstatemenl 9? KILN000206 Page I ofl

From: To: Sent: Subject: Property Listing From RE/MAX Bayside Hi Deb,

Here is the MLS information for the lfo ou asked about. Please let me know if you have any questions or would like to look at the property. Please open the link to view all the information.

Thanks

Rob Wichland

Click here for a link to the property: &id=27720tO

RE/MAX Bay 208 Daniel Webster I Meredith, NH 03 (603) 27e-0

MLS #:277 x Price: $375,000 Bedrooms: 3 Taxes: $3,127 Baths: 3 Type: Residential Sq. Feet: 326I Address:

Comments: A water access home at Kilnwood Landin that is ready for you today. Not even 1/l mile to the sandy shared beach/boat slip Lake Kanasatka. This is a perfect vacatio pr¡mary home' Private wooded lot, 2 car garage w/storage, screen porch, full/fini: walkout lower level, plenty of sleeping rc in super shape and available now.'..

KILN000207 U30l20tl MülX h Baysidd PROPERW DISCLOSURE - RESIDENTTAL ONLY tE New Hampshire AssoclatÍon of REALTORS@ Standard Form REALTOP TO BE GOMPLETED BY SELLER

- folloradng ansúrers and elçlanations acr fir.¡e and complete to the best of SELLER'S knowledge. This statement has been prepared to ä--'st prospective BUYERS ln evaluaüng SELLER'S property. Thls disclosure ls not a wananty of any kind by the SELLER, oranyreal estate FIRM representing the SELLER, and is not a substltute for any inspection by the BUYER. SELLERS authorize FIRM ln this transaction to disc,bee the lnformatlon ln ürls statement to oürer real estate agenb and to prospedive buyers of this prcperly. NOTIGE TO SELLERÍSI: COMPLETE ALL INFOR*lAT|ON AND STATE NOT APPLIGABLE OR UNKNOWN AS APPROPRI.ATE. ¡T ¡ÑY OF THE INFORMATION IN THIS PROPERTY DISCLOSURE FORM CHANGES FROÍII THE DATE OF YOU ARE TO NOTIFY THE LIST]NG 1. SELLER: Estate of Anastasia C- Bauet 2. PROPERTY LOCATION: 3. GONDOlflNtUii[, COOP úE oßct-ôsuRE R¡DER oR MULTtFAtnLy DtsclosuRE RIDERATTAcHED? Yes No 1. SELLER: Nhas has not occupied the property for h years- 5. WATERSUPPLY ÞEase€nswerall questions regardless of typy'of water supply. A. TYPE OF SYSTEM: EPUOI¡C Nf PTIVAIE DSEASeasonat ,EUnknorrul ¡ au*, K/4ttttio'l: LþlhntÇ b. INSTALI.A,TION: - lnstallad By: Date of lnstallatìon What is the source of your information? c. USE: Number of Persons cunenüy uslng the system: Does system supplywater for rnorc than one hcxrsehold? lY Yes No d. MALFUNCTIONS: Are you âwarê of or have you experienced any malfunctions with the (publlc/private/other) water systems? Pump: lYes E ruo n¡¡¿n Quantity: nYes !t¡o Quality: lYes I t'¡o Munknown lf Yes to any question, please explain ln Comments bglow orwith attachment. t ,. t t . -^:.. ,. I e. wATER TEST: Have you had the water tsstedf dVes E ruo Date of most recent Tesl .lrtUí¡lOUJlV lF YES to any question, please erplain in comment section below orwith attachment. Are you awäre of any test results reported as unsafsfactory or satlsfactory with notatîons? n yas Ufl" lF YES, are test results available? n Yes El¡rlo Wnat steps were taken to remedy the problem?

COMMENTS:

6. SEWAGE DISPOSAL SYSTEM a. TYPEOFSYSTEM: Publíc: 3/"" nruo Community/Shared: Dves !ruo Prlvate: EYes f]uo n unknown: b. IF PUBLIC OR COMMUNIMSHARED: Have you experienced any problems such as line or other malfunctlons? nYes ìlVhat steps were taken to remedy the problem? lF PRIVATE: ,/ TANK: Msepticrant f Hddingtank lcesspool flunknown notner Tank Size Gal. lother I - lunknown TankT¡¡pe $Concrgte ¡^.Ptr,tetat lunknown nOtner Location: Í.?jÐ^fi U $XU n Locatíon Unknown Date Dateof tastbervicing: I I t0b, NameofgfnoanyServicingTank: Have you experienced any rñaffunctions? [yes [f tlo Comments: d. LEACH FIELD: l/ lYes lF YES: Location: Size Unknown Date of installation of leach field: I tnstaneO ay: Have you expedenced any malfunctions? Yes No Comments:

BUYER(S) INmALS / ¡-LER(S)NffiALS ' .,o*-***"""o'*ffi-*'**lNc'Al-LRlGHTsREsERvEDFoRusE8YNtl^RREALTof{BMElt1BERsot{LY.ALLolHERtlçÊPRoHlBlTEDo1'2009 Page 1 of4

Forfn g€rÉred by: TrueForme' Êom REVEAT(È¡ sYsTEMs, t¡r. 800-499-9fll2 KILN000208 PROPERW DISCLOSURE - RESIDENTIAL ONLY New Hampshlre Association of REALTORS@ Standard Form REALTOR9 TO BE GOMPLETED BY SELLER r IPERTY LOGATION: e. lS SYSTEM LOCATED lN A SHORELAND ZONE? IYes ! unknown lF YES, has a site assessment been done? IYes No flUnknown SOURCE OF INFORMATON: COMMENTS: 7. INSULAÏON LOCATION Yes No Unknown lf YES, Type Amount Unknown Attlc orCap NT E x Crawl Space nn g, u ExteriorWalls nn ú, tr Floors !tr ú, tr n¡ d tr 8. HAZARDOUS MATERIAL a. UNDERGROUND STORAGE TANKS - Cunent or prevlously existing: Are you aware of any past or present undelrgnund storage tanks on your property? n ruo flunknor,r¡n lF YES: Are tanks orrrently in use? lYlYes UNo ., ^ I lF NO: How long have tank(s) been out of servlce? What materials in the tank(s)? Age of tank(s): Size of tank( Locatlon: Are you aware of any as leakage, etó-? IYes Eft¡o comments:

lf tanks are no longer in use, have tanks been removed? ASBESTOS - Cune¡il or prevlously eristtqg: / As lrculation on the heafiru systam pipes or ducts? I Yes M¡rlo [] Untno¡¡n ln flresiding? trVes El¡o X Unkrpwn tn the roofing shingles? trYas Nló üunknown lnflooringtihs? [Yss EfNo luntnown other- EYas Elf',lo üunknorrun tf YES, Source of information: Comments: RADONI/AIR - Gurrent or prevlously existing: Has the property been tested? lyes E no Munknown IfYES: Date: By Results: lf applicable, what remedial Has the property been tested sinoe remediat steps? flYes n ruo Aretest results available? tyes Etto Comments:- RADON^ /ATER- Current or prevlously existing: / Has the property been tested? lyes [ ¡¡o Nf Untmown IfYES: Date: By Rezults: Has the properly been tested since remedial steps? nyes n no Aretest results availabfe? lyqs flruo Comments: LEAD-BASED PAINT - Current or prevlously exlsting: I Areyou aware of lead-based paint on this propertyZ nyes MNo lf YES: Source of information: Are you aware of any cracking, peeling, orflaking lead{ased paint? [Ves Eltto Comments: Are you aware of any other hazardous materials? flyes Çlr*lo lf YES: Source of information: Comments:

, /,-r.ER(s) rn,r^r, ÊF , BUYER(S) lNl-rîALs pRoHtBrrED e ãxlg NEW HAlpoor,uolfi-^t,* ot- **tt*ar, rNc. ALL RTGHTs REsERVE FoR usE By t,ttr¡AR FEALToRo MEMBEffi or&y. ALL ofHER usE 01.2009 Page 2 ot 4

ForÍr gencrebd bt: TrueForms" Íorn nWgAt(èsvsrEils, tnc. 800.499€612

KILN000209 PROPERTY DISCLOSURE . RESIDENTIAL ONLY New Hampshire Assocfatlon of REALTORS@ Standard Form REALTORs TO BE COMPLETED BY SELLER P^IPERTY LOCATTON: 15 Hornbeam Hollow Moultonboro. NH 03253 9. GENERAL INFORMATION a. to liens, encro refusal? known lfYES, information?- b. ls/ris property subject to special assessments. fiees, or any other hansferable fees? Elvæ [tqo EUntnown ff YES, Explain:- What is your source of informatlon? c. Are ¡rou arlare of any onslte landfìlls or any other factors, such as soil, fiooding,- drainage, etc? nYes EIt¡o tf YES. Exptain: ., d. Are you aware of any problems with other bulldlngs on the property? Yes llldo lf YES, Explain: e. Are you recelving a tax exemption for this property for any reasons? ! yes Nlruo I Unkno¡rn lf YES, Explain: f. ls any part of thi g. ls this property located in a Federally DeslgnEted Flood Zone h. Hastheproperlybeensurveyed? nYes MruoTflUnlspwn lf YES, By: lf YES, is survey available? yes E lHo -ElUnkngg¡gr- , i. How is the property ¡. Healirg Systrem Age: Tank/Localion: Owner of Tank: Annual Fuel Consumptlon: Gallons: Comments: k. RoofAge: of Roof Govering: Moisture or leakage: Comments: Foundation/Basement Eother: Moisture or leakage: Comments: m. Chimney(s) How Many? Problems? n. Plumblng Tvpe: nse: Comments: /À o, Domestic Hot Waten Type: Gallons: p. ElectricalS¡ætemAmps: Circruit Gommen q. Modificat lf Yes, please Pest lnfestatio Comments: s. Methamphetamine Production: /o you have knowledge of methamphetamine production ever occurìng on the property? (PerRSA477:4g) nyes M¡to lf YES, pleaseexplain: t Other (e.9. Alarm System, lrrigation System, etc,)

NOTIGE TO PURGHASERISI: PRIOR TO SETTLEMENT YOU SHOULD EXERGISE WHATEVER DUE DILIGENGE YOU DEEM NECESSARY WITH RESPECT TO ADJACENT PARCELS IN ACGORDANCE WITH THE TERMS AND CONDITIONS AS MAY BE GONTAINED IN PURCHASE AND SALES AGREEMENT AND DEPOSIT RECEIPT. YOU SHOULD EXERCISE WHATEVER DUE DILIGENCE YOU DEEM NECESSARY WITH RESPECT TO INFORMATION ON ANY SEXUAL OFFENDERS REGISTERED UNDER NH RSA CHAPTER 65I.8, SUCH INFORIIIATION MAY BE OBTAINED BY GONTACTING THE LOCAL POLICE DEPARTMENT.

--r-LER{s) NtnAL{l-0y-/- BrryER(s) rNrnALs / .'*n".**'*s"o.ffi,'no,**..,*"'.lNc-ALLRlGHTsREsERvEDFoRUsEBYNHARREALToR@MEMBÉRSoNLY'ALLoTHERtJSEPRofilBlTEDo1'2mg Page 3 of 4 Form gE¡eraþd bt; TnreFoms" from REVEÁIGàsysTEiitg, trb, 8004999612 KILN000210 PROPERW DISCLOSURE - RESIDENTIAL ONLY New Hampshlre Assoclatlon of REALTORS@ Standard Form REALTOR9 TO BE COMPLETED BY SELLER

I'-OPERTY LOCATION: '15 F{omheam Hollow Moultonboro. NH 03253

I 0. ArrptnoNAl TNFoRMAT|ON a. AfiACHMENT EXPLAINING CURRENT PROBLEMS, PAST REPAIRS, ORADDITIOI\.IAL INFORMATION? EYes !¡to b. ADDITIONALCOMMENTS:

¡ HAVE PROVIDED THE INFORIIATION GONTAINED IN THIS INFORMATION STATEMENT AND REPRESENT THATALL STATEMENTS AHD INFORMATION ARE CORRECT. I UNDERSTAND THAT INFORMATION CONTAINED IN THIS INFORIHATION STATEMENTWILL BE COMMUN¡CATED TO PROSPECTIVE BITYERS.

MAY BE RESPONSIBLE AND LIABLE FOR ANY FAILURE TO PROVIDE KNOWN INFORMANON TO BUYER(S).

SELLER DATE

I/WE HAVE READ AND REGEIVED A COPY OF THIS DISCLOSURE AND UNDERSTAND THAT I/WE SHOULD SEEK INFORMATION FROM PROFESSIONALS NORMALLY ENGAGED IN THE BUSINESS REGARDING ANY SPEGIFIC ISSUES OF CONCERN.

BUYER DATE BUYER DATE

& ¿ú)9 NEW HAMPSHIRE ASSOCIATO¡¡ OF REALTORSC', INC. ALL RIGHTS RESERVED FOR USE BY NHAR RE.ALTOR@ MEMBERS ONLY. ALL OTIIER USE PROHIBMED 01,ãX}9

Page 4 of4

Forfn gÊnerêred by: TrueForms" from REVEALTQ)SYSTEMS, tnê. 800-499-9612

KILN000211 Powered by Vsion Appralsal Technohgy

ftIBLU: 106t / 023/000 000/000/

Location: I5 HORNBEAM I-ÐLLOW

Owner Name: BAUERAMSTASIA C

AccountNumber:

Parcel Value IÞm Asseesed Value Bdldirgs 279,000 Xtra BHg Features 2,700 Orrtbuùldirgs 3,500 Land 123,000 Total: ,108,200

Owner of Record E\UERA}IAS'TASIAC 15 HORI€EAM }ÐLLOW MOULTONBOROTJGH, NH 03254

Ownerchip History Or¡rmer Harne Eook Pags Sale Date Sale Price BAUER AìIASTASIA C 000/ 000 9114t20æ 0 BAUER JOI-T.I E &AI\IASTASIA 1897/.134 12¡1912000 230,000 ELUS,MARNN & MARCIA 17871 744 1/14/1999 't90,0û0 MIT/- '=LLIGHqRLES W 000000/0000 1/1/r900 0

Land LineValuation SÞe Zo,îe Assessed Value 0.65 AC P 123,000

Gonstruction Detail Bulldhrg f 1 ETYLE Moder/Gontemp Storlee: 1 3/4 Stories Occupancy 1 ExûerlorWall I Abotß Arcrage Roof Structurc: Gable/Hrp Roof Gover Asptt/F Gb/Cmp lnterior Wall I DrywalUSheet lntedor FIr I Ftardwood HeatFuel Ges Heat Type: Fbt Water AG Type: hlore Total Bedroone; 03 TotalBthnns: 3 Total Half Baths: 1

Building Valuation LivÈrg Area: f ,963 square feet YearBuitÈ 1997 Depreciation: 10% Buildtrg Yalue; 279,úO

KILN000212 4nU2009 Extra Featurcs Code Descrlpton l.¡nltË FPL F¡REPI.ACE l UNITS W}IL W}iRLPOOLTI,.E 1 UNITS

Ou' 'ildings Coov lÞscripüon Untú¡ RPV3 PAVING I-ARGE 1 UNITS

Building Sketch

Su' !ìa Summary Code Descriptþn G¡oseA¡ea Llving Area BAS Fi¡st Floor 1378 1378 CTH Cettedral Geil[rg 364 0 FGR Garage,Framed 864 0 FOP Porct¡ Open 105 0 FSP Porch, S¿reen, Framed 260 0 SFB Baser¡ænt,Raised FÍnislut 1298 0 TQS Three Quarter Stor-y 78t) 585 UHS l'hlf Story.l,.ffiinlslËd 864 0 URB Basen¡er¡t,Raised l.Åìfinisled 80 0 WÐK Ded(, Wood 612 0

KILN000213 411112009 Page I of1

n [email protected]

From: To: "CarolLavigne" Sent: Subiect: Hello Corol,

When you hove a f ew minutes, would you pleose osk Chris Kelly to shore ony wr¡tten informotíon he hos or con get f or the ossociotion membership thot is covered by the $750. onnuol dues? We'd like to know whot those dues cover, whot our rights ond responsibilities ore, ond whot our liobility is as individuols owning properfy of Kilnwood Londing bosed on the ossociotion membership. Even after reoding whalever documentation Chris gives you, we still mcy not know the cnswer to these guestions, but we con forword the informqtion to our ottorney in Loconio ond osk her to give us on informed legol opinion.

Thonks, Deb ond Joe

P.5. ft is perfectly fine with us if you'dlike to forword this emoil to Chris Kelly.

)

KILN000214 1l30l20tt Page I of2

From: "CarolL.Lavigne" To: "Deb Rogers" Sent: Wednesday, November 18, 2009 1:53 AM Subject: Property Search Alert From Carol L. Lavigne - Saved Properties Prooerty Search My Preferences Email Options Tella Friend Send Email as Text Send Emailas HTML Stoo Emails Start Emails Unsubscribe

Dear Deb Rogers,

Saved Search Named "Carols MLS2" identified 4 properties Basic Criteria Single Family from $0 to $400,000 in: Holderness, NH; Moultonborough, NH; Sandwich, NH; Tuftonboro, NH; Wolfeboro, NH Run Search Modifv Search

1) NEW: 14 Davis Lane. Moultonborouqh NH, MLS# 2808371, List $394,000, DOM 3 Lot1.47A, Built 1996, GLA 1,949SF, Style 1 3/4 story; contemporary, Rooms 7, Bedrooms 3, Baths 1l'l Garage 2 Remarks Wonderful alternative to buying a waterfront property. This lovely home sits on a knoll overlooking Lake Winnipesaukee and the . Not only that, it's just a short walk to your own deeded 24' dock at Quayside Yacht Club, the town beach and boat launch. The great room has vaulted ceilings, stone fireplace and 3 sliders to the spacious wrap around deck. Living room, dining room and kitchen all have views. A roomy 1st floor bedroom has its own bathroom and roomy closet. 112 bath for guests. Upstairs is a family room with views and 2 bedrooms and bath. Knotty pine walls give the great room warmth and character. The high ceiling on lower level could be a pool or media room. Lots of storage. Request Showing Contact Agent Add To Saved Prooerties Email To a Friend

2) NEW: , MLS# 2808310, List $129,900, DOM 3 Lot 2.904, Built 1985, GLA 2,736SF, Style I 3/4 story; cape, Rooms I, Bedrooms 4, Baths 211 Garage 2 Remarks Bank Owned house with great floor plan and 1st floor master and in law apt above garage. Needs new kitchen & plenty of work to bring this 2700+ sq ft home back to life. Foreclosed home on 2.9 +l- acres in Sandwich, NH. Request Showing Contact Agent Add To Saved Properties Email To a Friend

3)AR|CE C NGE: , MLS# 2772010, List $329,000 (+ $gzg,O00), DOM 219 Lot 28,314SF, Built 1997, GLA 3,261SF, Style 1 112 story; contemporary, Rooms 8, Bedrooms 3, Baths 311 Garage 2 Remarks A water access home at Kilnwood Landing that is ready for you today. Not even 1/1Oth a mile to the sandy shared beach/boat slips on Lake Kanasatka. This is a perfect vacation or primary home. Private wooded lot,2 car garage w/storage, screen porch, full/finished walkout lower level, plenty of sleeping room in super shape and available now..., Request Showino Contact Aqent Add To Saved Properties Email To a Friend

CHANGE: 80313, L¡st $2 000 (+ $284,000), DOV, 174 Lot 1.25A, Built 1992, GLA 2,000SF, Style contemporary; multi level, Rooms 8,

KILN000215 U30120t1 Residential 2772OlO Contingent

Style: 1 l/2 Story, Conternporary Rooms: I Year Built: 1997 Bedrooms: 3 Color: White Total Baths: 4 Taxes: $ 3,126.81 Full: 3 Taxes TBD: No 3/4Baths: 0 TaxYear: 2008 ll2 Baths: 1 Monthty Assoc.$: $ Garage GapaciÇ: 2 Lot Acre: .65 Garage Type: Attached Lot SqFt: 28,3',t4 Total Fin SqFt: 3,261 Road Frontage: Apx Fin Above Grd: 1,963 Water Frontage: 150 Apx Fin Belors Grd: '|',298 Acr Type: Shared Private Foot Pr¡nt: 26x44 Zoning: RESIDENTIAL 'Water Body Type: Lake Water Body Relr.: Surveyed: Yes No lwater Eody Name: Kanasatka Gurrent Use: No FloodZone: No Owned Land: lpu¡1rc Rems: A water acceìs ñome at Kilnwood Landing that is ready for you today. Not even 1/1Oth a mile to the sandy shared beach/bo€t sl¡ps on Lake Kanasatka. Thís is a perfect vacatioñ or primary tiome. Pr¡vate-wooded lot 2 car garage Østorage, screen porch' fullffinished : walkout lower level, plenty of sleeping room in super shape and available now.... rDirections: Bean Road to Sibley Road to Kilnwood to Hombeam Hollow i !: ÑsloNs-- 'ROOM---.-.-:_-_-_-.__..___ DIMS BASEiIENT IST FL 2ND FL 3RD FL ;Ful¡ Bath 1 1 1 llzBath 1 ',gl4gath Den 'Dining Rm 12 x 18 1 FamilY Rm 16 x 25 1 'Kitchèn 9 x 23 1 Living Rm 17 x 18 1 ;Master BR 14 x'14 1 2nd BR 1'4 x15 'l ;OrO en 10 x 10 1 4th BR Other Rm I OtherRm 2 ìOther Rm 3 1-'-'-- tÃmeñ¡t¡eàl istllÑ Lãun¿rv , eeacn Rig-hts , B-oat Slþ/Docr-, caole ' Eat ln Kitchen , Fireplace'Gas , Hot Tub , Laundry Hook-u Tub , 1st Floor Master BR Easement: Finished , Full , Walk Out iGonstruction: Wood Frame Driveway: Paved Electr¡c: 200 Amp , Circuit Breaker iAppliances: Gentral Vacuum , Dishwasher, Dryer, Range'Gas , Exter¡or: Cement, Clapboard Microwave, Refrigerator, Washer, \Mndow Treatnent ,Financing: Foundation: Concrete Zone Garage/Park: 6+ Parking Space , Attached , Auto Open , Direct Enfy , tl€at¡ng/Cool: Baseboard , Hot Water , Multi Storage Above Lot Landscaped , ROW to Water , Wooded 'Heat Fuel: Gas-iplUotfle Desc: ,Negotiable: Res{rictions: ìRoads: Association, Gravel Roof: Shingle.AsPhalt iSewer: 1250 Gallon , Concrete , Leacf¡ Field , Private Water: Community Fee lncludes: Recreational Water Heater: Gas , Off Boiler rDisability: Book/Pg: 18971 434 Tax Rate: $ 7.66 Tax Class: Tax Reduct: No ,Elderly: No Veteran: No Other: No Map/Blck/Lot: 1061 123 iCovenant: Yes Assmt: $ 408,200.00 Assmt Yr: 2008 Recorded Deed:Wanan$ Elem Sch: Moultonborough Jr./Mid Sch: Moultonborough HighSch: Moultonborough District: Moultonborough Central ScTtool Academy AcademY :County: Carroll NewConst: No Source SqFt: Msrd Glosed Date: Excl Sale: Devel/S ubd iv: Ki lnwood PREPARED BY Fredrick Bussiere Email : [email protected] RE/irAX Executives Off. PM: (603) 664-8000 5 Dyment Way Suite A Agt. Ph#: (603) 994-8001 ext. 103 Barrington, NH 03825 Gell Ph#: (603) 235-3579 Lister: Christopher Kelly of RE/MAX Bayside Fax Ph#: (603) 994-8003

for this property. Subject to erors;omissions; Dr¡or sale; chanqe or withdrawal without nothe, The agency referenced Iniy or_qìây l9t be-Ûte !¡ltiry agency Copyright 2009 Northern New England Real Estate Network, lnc.03/0312010 03'.22PM Printed By: Fædrick Bussiere

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s:*e-ciBl.ffil¡ln üd¡ürü.Frty tã rtrlrráÐtryr.ilmt $rËllæltsrr,hölúftr'8cñgvv A€Fltf hutrþ fî:çudl MU. BofhpxttrçlçrçtotûietåËt ut€ lgcmwåtEl{ttnrydldßtû¡ ffidof bùglÈga¡dr hUryfud¡r.r¡ilï¡ntp¡hüç drFþdl rtronb lnlt t¡ rsirqv, SÞr au ün .Èu¡undhg af ¡*nr ,to tu €iklr rif F¡ó .E¡rt

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Ëor{rn tfdt tr.be dr¡¡oqüúrsúßd by r*rditlwrC s,ùlldr Xæo¡s of ågrrrnam, fiîrrtdqq b .r hlrr.n crnmfunpnt lËdnr, {üh ÈÊl BUYER ii øoan¡r¡ytlU lu¡ rntåüß.b.n * fü¡fi rn*trlirit:üFGlôd¡gôt ¿Þcôll'red ru*ûomrry conültk¡n¡ . BUrER ir 'ügcFmrËu tq r¡¡olvð alt cõBdltat+È hdt*l h.ûr.båì oomrfrmrlbyür. Cþrhf drb.

ThÉ ëIlrt r.lËè of G#itþ¡c ùr rhlr loar ¿tïrrnftni.nt vfll äot ê,itrnd eflxr ä* Filiancíq Drdän* dË{rrÈad'äã|ffi rä üÞ .ËlçÐftg.-dåtÈi

BUYER herehy arflhodcäñ. dir.sctrand hrtri¡da ltE lsndsr re c'nmBüldcrtÊ thg rËËüE of BU.YER'8 financtng end the ¡aü¡û*üor qf tcñ*f¡ ¡fçsìñd çordlüqn" F gßl l.ER rurd SEI-I-ËHSJBUTÊR'€ rd ffi FlRtt

TIME ISOFTI# EE8Ë¡¡CEfrtha oliranr.aær dCldeådlh.rË€tisrü vrihhr'.$þ frnanchgutrtt¡ngÈ{tdt/. BUYER trttriü h *t fll6rfly ånd ¡n gooÉ Érft lrl ül*ËktÍlg r{¡('l frtucftg md.dräfl, Trüúri __å* cã|alrùr dal,Ð frürn tlie ¡fbstñrg dÊû¡, $Èfltil r oomdrÞ etd rcwn¡tÊ r¡p$crüon ftr ñor{gqs frrùldrtg ts S latrl rre lÌnr¿cl¡l ügítl*ta atunff prltvfdùrg--_*rdt lÈún+ rþSl€Clno lîrililcfflgF h llrEsrnmt rnd on ùû þrïr. Fruuùtld ¡'t X¡¡ ¡q¡rewr*.

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tÐ Br'drfiUrÊUfER h ôbtt, ottlú¡ Af,lràrunÈ or

(ù) f¡¡r&ü l't¡ fiqftchg rohüÞSancï lr h¡¡l¡g,bçrr w'hiêr, þy BUYËn.

lf SÊLI"ER d¡rt¡urr BUYER h d.ñr¡Nt h ¡ddlrhr ro ih¡ drcr fr¡¡rüe¡ dhrdetlrÉr üþ Agturffrft

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(t) tYll to sülrd ro rúl ðÞOdE frr Ormrd¡æc tdür ürr D¡1¡orlt Fresedr¡rra; rr¡d

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Freddie Mac Form 70 ì/hrch 2005 PaFlofo tannie M¿e Form 1 Oil March 2005

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KILN000222 Uniform Resldenüal

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