Covenants

H INVESTMENTS (NZ) LIMITED

BUILDING AND DESIGN COVENANTS ('LAND COVENANTS')

1. Creation of Land Covenants

1.1 The Grantor for itself and its successors in title covenants and agrees with the Grantee and its

successors in title that the Grantor will at all times observe and perform the covenants contained in

this Easement Instrument to the intent that each of the covenants will forever enure for the benefit of

and be appurtenant to each and all of the Dominant Tenements and each and all of the registered

proprietors of the Dominant Tenements provided that the Grantor will be liable only for breaches

of the covenants contained in this Easement Instrument which occur whilst the Grantor is the

registered proprietor of the Servient Tenements or any part of the Servient Tenements and

provided further that H Investments (NZ) Limited will not be liable for breaches of the covenants

contained in this Easement Instrument whilst it is the registered proprietor of the Servient Tenements

or any part of the Servient Tenements.

1.2 The Grantor will at all times indemnify and keep the Grantee indemnified from all losses, costs,

claims and demands in respect of any breach or non-observance by the Grantor of these

covenants.

1.3 The Grantee will not call on H Investments (NZ) Limited to pay for or contribute towards the cost of

erection or maintenance of any boundary fence between any property and adjoining property of

the Grantee provided that this covenant will not enure for the benefit of any subsequent registered

proprietor of any adjoining property.

 2. Interpretation

2.1 Unless the context specifies or requires otherwise, the following words and phrases in these

covenants shall have the meanings specified below:

Approved Builder means a builder who has been approved by the Developer and who has

entered into an Approved Builder Deed.

Approved Builder Deed means a deed to be entered into between the Developer and a builder

of any Building on a Developed Property in a form prescribed by the Developer.

Authority means the Waimakariri District Council or any other relevant authority and any

replacement or substitute authority.

Building means any building or structure higher than 1.2 metres above Ground Level, including

chimneys and satellite dishes, but excluding aerials.

Developed Properties means each and every Developed Property within the Development.

Developed Property means any one property comprised on a separate certificate of title in the

Development.

Developer means H Investments (NZ) Limited or its nominee or any developer who acquires the

Development from H Investments (NZ) Limited for the purposes of completing the Development.

Developer Approval means the approval given by the Developer of the Plans and Specifications.

Development means the Silverstream Estates development in Kaiapoi.

Dwelling means a Building or a group of Buildings designed and occupied for residential purposes

as a single self-contained household unit, by one or more persons, and includes any normal

accessory Building including but not limited to garages, garden sheds and glasshouses.

Ground Level means the finished ground level of a Developed Property as at the date of deposit

of the plan of subdivision which creates that Developed Property.

Home Office means no more than two rooms in a Dwelling set aside for home office/business but

excludes any bed and breakfast or other form of commercial visitor accommodation activity.

Land Covenants means these covenants.

Plans and Specifications means the final working drawings and the specifications (including the

materials used) of a Building proposed for construction on the Developed Property and the site

plan, concept plan, landscaping plan and fencing plan for the Developed Property.

Prescribed Approval Processes means those approval processes prescribed from time to time by

the Developer for the purposes of Developer Approval.

RMA means the Resource Management Act 1991 and any regulations (as amended from time to

time) and any replacement or substitute legislation and/or regulations in effect from time to time.

Subdivision Plan means a subdivision plan showing Developed Property boundaries.

WDP means the Waimakariri District Plan (or any replacement or substitute plan) in effect from

time to time.

Working Days means a day which is not a Saturday, Sunday or public holiday in Canterbury.

3. Construction Covenants

3.1 The Grantor for itself and its successors in title hereby covenants and agrees with the Grantee and

its successors in title for the benefit of the Dominant Tenement that the Grantor shall not:

3.1.1 Erect (or permit or suffer to be erected) on the Servient Tenement:

3.1.1.1 any Building unless the Plans and Specifications have first received Developer

Approval in accordance with the Prescribed Approval Processes. The Developer's

decision in relation to all aspects of the Developer Approval will be final;

3.1.1.2 any Building where construction has not commenced within six (6) months of the date

of Developer Approval. Developer Approval will be deemed to have lapsed on

that date six months after the date of Developer Approval in which case the Plans

and Specifications will need to be resubmitted for Developer Approval;

3.1.1.3 any Building unless the builder is an Approved Builder;

3.1.1.4 any Building other than a Building constructed in accordance with the Plans and

Specifications which received Developer Approval;

3.1.1.5 any Building other than a single Dwelling and usual accessory Buildings for the

occupation of one household unit;

3.1.1.6 any re-locatable, pre-built or kit-set Building or any Building containing second-hand

materials (other than second-hand recycled bricks) unless approved in writing by

the Developer;

3.1.1.7 any Building with external cladding (except cladding of soffits or gable ends) of

unrelieved flat steel, corrugated iron, fibrolite, hardiflex, galvanised steel, fibre

cement weatherboards, uncoated fibre material, PVC sidings or claddings,

unpainted concrete masonry, metal or asphalt based aggregate covered tiles or

shingles or any similar materials;

3.1.1.8 any Building with unfinished exterior walls or doors (except where cedar cladding

or decorative brick /stone are used);

3.1.1.9 any Building with a roof constructed from anything other than slate, tile or a precoloured

steel product unless the Developer agrees to a different roofing material

as part of providing Developer Approval and providing that no Building shall

have a roof constructed from copper, corrugated iron or any unpainted metal

surface or have copper spouting or down pipes unless the same shall have been

authorised by Developer Approval;

3.1.1.10 any fence or boundary wall containing cement board sheets or panels, corrugated

iron or metal sheeting;

3.1.1.11 any sign visible from outside the Developed Property except:

3.1.1.11.1 one standard real estate sign which shall be no larger than 600cm x

1m and no higher than 1.2m above Ground Level;

3.1.1.11.2 signage erected by the Developer;

3.1.1.11.3 signage approved by the Developer on such conditions as the

Developer thinks fit;

3.1.1.11.4 a sign erected by an Approved Builder in accordance with the terms

of an Approved Builders Deed;

and all signs erected in accordance with this clause are subject to the requirements

and the rules applicable to the then applicable zone of the WDP for the

Developed Properties. All signs shall be located appropriately and maintained to

the satisfaction of the Developer in all respects. The Developer may give 24 hours

written notice to any registered proprietor or occupier of a Developed Property to

remove any sign that does not comply with these Land Covenants.

3.1.1.12 any carport other than a fully enclosed garage;

3.1.1.13 any aboveground electrical, telephone, or other wires or any fencing other than as

expressly authorised by the Developer Approval of the Plans and Specifications;

3.1.1.14 any satellite dish with a diameter greater than 0.7 metres or any satellite dish or

TV aerial that is visible from the street frontage of the Developed Property; or

3.1.1.15 any Building beyond the approved Authority set backs or located over any

registered easement facility.

3.1.2 Delay commencement of construction of the Dwelling on a Developed Property to a date

more than six (6) months after the settlement date of the purchase of the Developed

Property or take any more than twelve (12) months from the date of Developer Approval

to complete construction of the Dwelling, fencing and landscaping of the Developed

Property.

3.1.3 Erect a Dwelling without erecting a new letterbox at the front of the Developed Property of

a design and colour approved by the Developer as part of the Developer Approval and

where the letterbox shall not be more than 1.5 metres high or 500mm wide.

3.1.4 Permit any damage to be caused to any Servient or Dominant Tenement and any adjoining

property (including, without limitation, berms, footpaths, stormwater swales, tree planting

and fences) as a consequence of construction work on the Developed Property. The

Grantor shall promptly make good any damage.

3.1.5 Permit during the course of construction the loading, unloading, delivery, or storage of

building materials other than within the boundaries of the Developed Property.

3.1.6 Carry out any construction unless an adequate rubbish skip is available and regularly

emptied or replaced, or permit any rubbish to blow outside the boundaries of the

Developed Property or permit any vehicles being used in the construction process to be

washed down other than within the boundaries of the Developed Property.

3.1.7 Permit the Grantor's builder (including its construction workers and contractors) to use the

Developed Property or any other area in the Development for toileting purposes and prior

to construction commencing the Grantor shall provide a suitable portable toilet facility for

use by the Grantor's builder (including its construction workers and contractors).

3.1.8 Provide car parking for less than one vehicle that can be parked on the Developed

Property and less than one vehicle that can be garaged on the Developed Property.

3.1.9 Use colours on the exterior roof or wall other than those approved by the Developer.

3.1.10 Permit any soil, earth, clay, sand or shingle materials used in the course of the construction

process to remain on a Developed Property after completion of construction and to remove

the same as soon as possible.

3.1.11 Bring onto or use (either during the course of construction or following completion of

construction) any temporary structure, tent (other than a children's play tent), caravan or

campervan or similar facility for overnight sleeping or accommodation on any Developed

Property.

3.1.12 Permit any internal plumbing pipes (other than stormwater pipes) to be visible from the

outside of the Building and to conceal the pipes into walls or ducts. Pipes which are

required to break the roof line must be painted the same colour as the roof.

3.1.13 Erect fences on the boundaries of the Developed Property other than in accordance with

the Developer Approval of the Plans and Specifications and the provisions of the Fencing

Act 1978 will apply to all fencing, including without limitation, section 9. Where, despite

clause 1.3 of these Land Covenants, the Developer has erected a fence then the Grantor

will reimburse the Developer for the cost of the fencing and if the Grantor being liable to

pay the Developer for the fencing cost or maintenance cost fails to reimburse the Developer

within ten (10) Working Days of receiving an invoice for the amount to be reimbursed then

the Grantor will pay the Developer interest at the rate of twelve percent per annum (12%)

on a daily basis until payment is made.

3.1.14 Erect fences otherwise in accordance with the provisions of the WDP and in particular the

rules relating to all fencing between residential properties and reserve land to ensure that

all residential properties fronting neighbourhood roads shall have a minimum visual

permeability/openness of 45% and subject to the WDP all street facing fences will be set

back from the front boundary of the Developed Property in accordance with specifications

that will be described in the Developer Approval of the Plans and Specifications. Subject to

the WDP all side and rear fences will not exceed 1.8m in height and will be stained or

finished before the Dwelling is occupied. Where fences from adjoining Developed

Properties meet they will be flush at that juncture and if required the fence will be tapered

over a minimum length of 2 x 2.4m.

4. Land Use Covenants

4.1 The Grantor for itself and its successors in title hereby covenants and agrees with the Grantee and

its successors in title for the benefit of the Dominant Tenement that the Grantor shall not:

4.1.1 Use or allow the Developed Property to be used or developed other than in accordance

with the requirements of the WDP in all respects and in particular the rules applicable to

the then applicable zone of the WDP for the Developed Properties.

4.1.2 Use or allow the Developed Property to be used for any illegal, offensive or noisy

activities.

4.1.3 Use the Developed Property and the Dwelling as a residence until the later of:

4.1.3.1 the date of issue of a Code Compliance Certificate by the Waimakariri District

Council; or

4.1.3.2 the date that the Building, landscaping and fencing have in the Developer's opinion

been completed strictly in accordance with the Developer Approval of the Plans

and Specifications.

4.1.4 Use any part of the Developed Property for any purpose other than a Dwelling or Home

Office without the prior written consent of the Developer.

4.1.5 Except during the period of construction of the Building, use (or permit or suffer to be used)

any chainsaw, motor mower, mechanical weed-eater or other noisy mechanical device on

the Developed Property before 8.00am or after 7.00pm on any day.

4.1.6 Play or use (or permit or suffer to be played or used) any live music or any radio, television

set, audio device or electrical musical appliance on the Developed Property that can be

heard beyond the boundaries of the Developed Property.

4.1.7 Subdivide any Developed Property. For the purposes of this clause "subdivide" shall have

the same meaning given to the expression "subdivision of land" in section 218 of the RMA

provided however that it shall not include any boundary adjustment that does not result in

the creation of a greater number of separate certificates of title than existed prior to the

boundary adjustment.

4.1.8 Permit any clothesline or clothes drying apparatus to be visible from the street frontage of

the Developed Property.

4.1.9 Permit the Developed Property to become untidy and overgrown so that the Grantor will

keep the Developed Property in a neat and tidy condition and not allow rubbish to

accumulate on the Developed Property.

4.1.10 Permit any part of the Developed Property to form a private or legal road to an adjoining

property, provided, however, that where a Grantor owns two adjoining lots with the

intention of constructing one Dwelling on those combined lots, this clause shall not apply for

the Grantor's use of those adjoining lots.

4.1.11 Keep any livestock or animals on the Developed Property (other than household domestic

pets for household domestic purposes) which may cause a nuisance or annoyance to

registered proprietors of any neighbouring Developed Property or detract from the

Development including but not limited to pigs, deer, goats, horses, sheep, fowl, pigeons, or

any dog which in whole or in part, resembles any of the Pit Bull Terrier, Japanese Tosa,

Dogo Argentine, Fila Brasileiro, Rottweilers or Doberman Pinschers breeds or any other

potentially aggressive or noisy breed of animal or allow the Developed Property to be

used for any commercial kennel or cattery.

4.1.12 Park or (permit or suffer to be parked) on the Developed Property any storage container

or caravan, campervan, boat, trailer or like recreational vehicle where it is visible from the

street frontage of the Developed Property.

4.1.13 Park any vehicle or leave any item of plant or equipment on the road reserve in front of

the Developed Property which is in a poor state of repair, unsightly or damaged and which

might cause a hazard to any person or devalue or decrease the enjoyment of any

registered proprietor of a Developed Property.

4.1.14 Bring or allow to be brought onto any Developed Property motor vehicles of a gross laden

weight of more than 4500kg or agricultural or other contracting plant, or any similar

machinery likely by its presence to devalue or decrease the enjoyment of any registered

proprietor of a Developed Property.

4.1.15 Permit the state of repair and condition of a Building on the Developed Property to

deteriorate, to the intent that the Grantor shall regularly maintain the Building and in

particular the exterior surface materials.

4.1.16 Oppose or object to any application for a resource consent or building consent or any other

approval made by the Developer to the Authority and will on request being made by the

Developer sign any documentation required to give effect to any such consent or approval.

5. Neighbouring Land Covenants

5.1 The Grantor for itself and its successors in title hereby covenants and agrees with the Grantee and

its successors in title for the benefit of the Dominant Tenement that the Grantor shall not:

5.1.1 Make or lodge, be a party to or finance or contribute to the cost of any complaint,

application, or other proceeding (either directly or indirectly) under the RMA or otherwise

designed or intended to limit, prohibit, or restrict:

5.1.1.1 the permitted use of the piggery adjoining part of the western boundary of the

Development as more particularly described in Certificates of Title CB12K/708

and CB560/71 permitted by a resource consent or any existing use of the land or

any part of the land; or

5.1.1.2 in the case of any expansion, after the date of this Land Covenant, of any such

activity which was carried out by the piggery adjoining part of the western

boundary of the Development as more particularly described in Certificates of

Title CB12K/708 and CB560/71 prior to the date of this Land Covenant, or in the

case of any alteration to the accommodation of animals housed on the land

described in Certificates of Title CB12K/708 and CB560/71 that is required to

bring about changes introduced by the Animal Welfare code;

5.1.1.3 provided that the effects of such activities including any proposed expansion

will be no greater than the effects of activities which were lawfully established at the date

of this Land Covenant unless the Grantor believes (acting reasonably) that an activity

carried out on the land described in Certificates of Title CB12K/708 and CB560/71 is in

breach of the requirements of the WDP or the requirements of a consent issued by an

Authority.

5.1.2 Pursuant to the provision of the Contracts (Privity) Act 1982, the parties acknowledge that

the terms and provisions of clauses 5.1 and 5.2 of these Land Covenants confer a benefit

on, and shall be enforceable by, the registered proprietors (from time to time) of the land

described in Certificates of Title CB12K/708 and CB560/71 as if such persons or entities

were a party to these Land Covenants.

5.1.3 Make any complaint (either directly or indirectly) in respect of the location of the

Developed Property within the 50 dBa air noise contour for Christchurch International

Airport ("CIA"). The Grantor acknowledges that part of the Development is within the 50

dBa air noise contour for CIA and that depending on prevailing weather conditions the

Developed Property will be over-flown by aircraft landing and taking off from CIA 24

hours a day, 365 days a year. The Grantor will not lay any complaint with or against the

Developer, any Authority, CIA or its successor in respect of any noise or other nuisance that

may be caused to the Grantor as a consequence of the Developed Property's proximity to

CIA.

5.2 The Grantor acknowledges that the Development land was rural land prior to rezoning and that

properties surrounding the Development continue to be used for rural, quasi-rural, life-style and

ancillary related purposes.

5.3 In this clause 5, the terms "permitted activity" and "resource consent" shall have the meanings as

defined in section 2 of the RMA, and "existing use" shall have the meaning as defined in terms of

section 10 of the RMA.

6. Default

6.1 If there shall be any breach or non-observance on the Grantor's part of the Land Covenants

contained in this Easement Instrument (and without prejudice to any other liability which the Grantor

may have to the Grantee or any other person having the benefit of these Land Covenants) the

Grantor will upon written demand being made by the Developer or any of the registered

proprietors of the Dominant Tenement(s):

6.1.1 pay to each Grantee (or other person having the benefit of these Land Covenants) making

such demand as liquidated damages the sum of $150.00 per day for every day or part

day that such breach or non-observance of the Land Covenants contained in this Easement

Instrument continues after the date upon which written demand has been made;

6.1.2 remove or cause to be removed any Building or fence erected or placed on the Servient

Tenement in breach or non-observance of these Land Covenants;

6.1.3 replace any building materials so as to comply with these Land Covenants; and

6.1.4 while the Developer is the registered proprietor of any Dominant Tenement, reimburse the

Developer upon demand for all legal and other costs incurred by the Developer in dealing

with the Grantor's default.

6.2 The Grantor will not have any claim in damages against the Developer on account of any refusal

to grant or the grant of Developer Approval under these Land Covenants or for the transferring or

assigning of its interest and right to grant or withhold Developer Approval.

6.3 While the Developer is the registered proprietor of any Dominant Tenement all breaches or nonobservance

on the Grantor's part of the Land Covenants whether actual or alleged must first be

referred to the Developer so that no Grantee other than the Developer may take any action

against a Grantor in respect of a breach or non-observance of the Land Covenants. In addition to

the remedies set out in clause 6.1 the Developer will have a complete discretion to deal with the

default in such way as it thinks fit and the Grantor will not have any claim in damages against the

Developer or right to compensation in respect of any action by the Developer in dealing with the

default.

7. Disputes

7.1 If a dispute arises in relation to this Easement Instrument:

7.1.1 the party initiating the dispute must provide full written particulars of the dispute to the

other party;

7.1.2 the parties must promptly meet and in good faith try to resolve the dispute;

7.1.3 subject to clause 7.2 if the dispute is not resolved within ten (10) days of the written

particulars being given (or any longer period agreed by the parties) the dispute must be

referred to arbitration in accordance with the Arbitration Act 1996 to be conducted by a

single arbitrator to be agreed on by the parties or, failing agreement, to be appointed by

the President of the Canterbury and Westland Branch of the New Zealand Law Society.

7.2 Notwithstanding clause 7.1.3 if any dispute arises in relation to this Easement Instrument including

as to what may constitute a breach or as to matters of interpretation of this Easement Instrument

while the Developer is the registered proprietor of any Dominant Tenement then the same shall be

referred to the Developer for resolution whose decision shall be final.

8. No Termination

8.1 The Grantor may not determine this Easement Instrument for breach of any provision in this

instrument (whether express or implied) or for any other cause, it being the intention of the parties

that the Land Covenants created herein shall subsist until they expire in accordance with clause 9.1,

become obsolete or are surrendered.

9. Expiry of Land Covenants

9.1 These Land Covenants shall expire and cease to have any effect on the date 50 years following

the date of registration of this Easement Instrument such expiry being without prejudice to any

claim under these Land Covenants made prior to the expiry date.