Page 5 of 12 pages

AND WHEREAS the Grantor proposes to subdivide the Lands, according
to a plan of subdivision completed and certified correct on the 4th day of October,
1991 by Robert M. Reese British Columbia Land Surveyor, a copy of which is
attached hereto as Schedule “A”, into the following lots:

City of Port Coquitiam
Parcel Identifier:
Lot 1 District Lot 380 Group 1 New Westminster District Plan

Parcel Identifier:
Lot 2 District Lot 380 Group 1 New Westminster District Plan

(hereinafter cailed the “Lots");

AND WHEREAS a covenant under Section 215 of the Land Title Act is
required as a condition of the consent to approval of the subdivision of the Lands by
the Minister of Environment under Section 82 of the Land Title Act.

AND WHEREAS Section 215 of the Land Title Act provides that there
may be registered as a charge against the title to any land a covenant in favour of the
First Grantee and a municipality that land is to be used in a particular manner or that
land is not to be subdivided except in accordance with the covenant;

NOW THEREFORE THIS AGREEMENT WITNESSETH that in consideration
of the sum of ONE DOLLAR ($1.00) of lawful money of Canada and other good
valuabie consideration paid by the First and Second Grantees to the Grantor, the
receipt of which is hereby acknowledged, the Grantor does hereby covenant and agree
with the First and Second Grantees under Section 215 of the Land Title Act of the
Province of Britism Columbia as follows:

The Grantor is aware of and, on behalf of himself and his heirs, executors,
administrators, successors and assigns, hereby acknowledges that there is a
potential flood danger to the Lots.

2. The Grantor, on behalf of himself and his heirs, executors, administrators,
successors and assigns, hereby covenants and agrees with each of the First
Grantee and Second Grantee, as a covenant in favour of each of the First
Grantee and Second Grantee pursuant to Section 215 of the Land Title Act
being the intention and agreement of the Grantor that the provisions hereof be
annexed to and run with and be a charge upon the Lots, that from and after the

date hereof: