ONTARIO PLAINTIFFS and KINGS LAND …

1 ONTARIOSUPERIOR COURT OF JUSTICEBETWEEN:BERNARD K. CHEUNG and BEN WING PUN MOKPLAINTIFFSand(Court seal) KINGS land DEVELOPMENTS INC., HENRY LAM,LINDA LAM, JEFFREY P. BEBER, LEVITT, BEBER, EDDIE LEE, RE/MAX REALTY INC. and LIVING REALTY COMMENCED UNDER THE CLASS PROCEEDINGS ACTFRESH AS AMENDEDSTATEMENT OF CLAIMTO THE DEFENDANT(S) A LEGAL PROCEEDING HAS BEEN COMMENCED AGAINST YOU by the plaintiff(s). The claim made against you is set out in the following YOU WISH TO DEFEND THIS PROCEEDING, you or an ONTARIO lawyer acting for you must prepare a statement of defence in Form 18A prescribed by the Rules of Civil Procedure, serve it on the plaintiff(s) lawyer or, where the plaintiff(s) do(es) not have a lawyer, serve it on the plaintiff(s), and file it, with proof of service, in this court office, WITHIN TWENTY DAYS after this statement of claim is served on you, if you are served in you are served in another province or territory of Canada or in the United States of America, the period for serving and filing your statement of defence is forty days.

2 If you are served outside Canada and the United States of America, the period is sixty of serving and filing a statement of defence, you may serve and file a notice of intent to defend in Form 18B prescribed by the Rules of Civil Procedure. This will entitle you to ten more days within which to serve and file your statement of YOU FAIL TO DEFEND THIS PROCEEDING, JUDGMENT MAY BE GIVEN AGAINST YOU IN YOUR ABSENCE AND WITHOUT FURTHER NOTICE TO YOU. IF YOU WISH TO DEFEND THIS PROCEEDING BUT ARE UNABLE TO PAY LEGAL FEES, LEGAL AID MAY BE AVAILABLE TO YOU BY CONTACTING A LOCAL LEGAL AID : July 20th, 2001 Issued by _____Local registrarAddress of court office:393 University Avenue10th FloorToronto, ONTARIO M5G 1E8 TO: KINGS land DEVELOPMENTS INC. AND TO:HENRY LAMAND TO:LINDA LAMAND TO:JEFFREY P. BEBERAND TO:LEVITT, BEBERAND TO:EDDIE LEEAND TO: RE/MAX REALTY TO:LIVING REALTY The PLAINTIFFS claim on behalf of themselves and on behalf of each of the Class Members:(a) As against the Defendant KINGS land Developments Inc:(i) rescission of the Agreements of Purchase and Sale ("the Agreements") made between each member of the Class set out in Schedule A to this Statement of Claim ("the Class"), and KINGS land Developments Inc.

3 As Vendor, of commercial condominium units which were to be constructed at the property legally described as part of Lot 21, Concession 2, East of Yonge Street in the Town of Richmond Hill, in the Regional Municipality of York ("the property");(ii) a declaration that the Agreements are null and void;(iii) the return of deposits totalling the sum of $10,894, ;(iv) all necessary and consequential accounts, directions, references, inquiries for rescission;(v) an accounting with respect to the sum of $10,894, ;(vi) punitive , exemplary and aggravated damages in the sum of $10,000, ;(vii) prejudgment and post-judgment interest pursuant to the provisions of the Courts of Justice Act, 1990, ;(viii) any goods and services tax which may be payable on any amounts pursuant to Bill C-62, The Excise Tax Act, 1985, as amended or any other legislation enacted by the Government of Canada;(ix) costs of this action on a solicitor and client basis;(x) such further and other relief as counsel may advise and this Honourable Court permit.

4 (b) As against the Defendants Henry Lam, Linda Lam, Jeffrey P. Beber, Levitt, Beber, and Living Realty Inc.:(i) damages in the sum of $10,894, ;(ii) an accounting of all monies received from KINGS land Developments Inc., or affiliated corporations or persons;(iii) punitive , exemplary and aggravated damages in the sum of $10,000, ;(iv) prejudgment and post-judgment interest pursuant to the provisions of the Courts of Justice Act, 1990, ;(v) any goods and services tax which may be payable on any amounts pursuant to Bill C-62, The Excise Tax Act, 1985, asamended or any other legislation enacted by the Government of Canada;(vi) costs of this action on a solicitor and client basis;(vii) such further and other relief as counsel may advise and this Honourable Court permit;(c) As against all the Defendants :(i) an Order certifying this action as a Class Proceeding and appointing the PLAINTIFFS as representatives of the Class;(d) The Plaintiff Bernard K.

5 Cheung claims only against Eddie Lee, andRe/Max Realty Inc.(i) damages in the sum of $75, ;(ii) punitive , exemplary and aggravated damages in the sum of $100, ;(iii) prejudgment and post-judgment interest pursuant to the provisions of the Courts of Justice Act, 1990, ;(iv) any goods and services tax which may be payable on any amounts pursuant to Bill C-62, the Excise Tax Act, 1985, as amended or any other legislation enacted by the Government of Canada;(v) costs of this action on a solicitor and client basis;(vi) such further and other relief as counsel may advise and this Honourable Court THE PARTIES2. The PLAINTIFFS ("the Representative PLAINTIFFS ") reside in the Province of ONTARIO . The Representative PLAINTIFFS are representative of a class of persons ("the Class") all of whom claim damages and monies from all the Defendants (except from the Defendants, Eddie Lee and Re/Max Realty the Plaintiff Bernard K.)

6 Cheung claims from Eddie Lee and Re/Max Realty Inc.). The individuals members of the Class are set forth in Schedule A to the Statement of Claim. 3. The Defendant KINGS land Developments Inc. (" KINGS land ") is a company incorporated pursuant to the laws of the Province of ONTARIO , and carries on business as, inter alia, as a real estate developer. KINGS land as vendor, and each member of the Class as purchaser, entered into the Agreements for the commercial condominium units ("the units") at the The Defendants Henry Lam ("Henry") and Linda Lam ("Linda") are individuals who reside in the Province of ONTARIO and who, at all material times, were the officers, directors and directing minds of KINGS The Defendant Levitt, Beber is a law firm ("the law firm"). The Defendant Jeffrey B. Beber ("Beber") is a partner in the law firm. All acts and omissions of Beber as referred to herein were done within the scope of Beber's authority as partner in the law firm, and as such the law firm is liable for the acts and omissions of Beber.

7 The law firm and Beber were at all material times, the solicitors for KINGS land and the recipient and trustee of trust funds paid by the Class as deposits for the purchase of the units at the property. 6. The Defendant Re/Max Realty Inc. ("Re/Max") is a company incorporated pursuant to the said laws of the Province of ONTARIO , and licensed as a real estate broker pursuant to the provisions of the Real Estate and Business Brokers Act. The Defendant Eddie Lee ("Lee") is a licensed real estate agent employed by Re/Max. At all material times, Re/Max and Lee were Bernard K. Cheung's agents acting with respect to his Agreement to purchase units at the property. All acts and omissions of Lee were within the scope of his agency and employment, and as such Re/Max is liable for the acts and omissions of Lee. 7. The Defendant Living Realty Inc. ("Living Realty") is a company incorporated pursuant to the said laws of the Province of ONTARIO , and licensed as a real estate broker pursuant to the provisions of the Real Estate Business Brokers Act.

8 Living Realty was king land 's listing agent for the property. All acts and omissions of Living Realty's sales representatives and agents were within the scope of their agency and employment, and as such Living Realty is liable for the acts and omissions of their agents and salespersons. B. THE AGREEMENTS8. The Representative PLAINTIFFS and each member of the Class have entered into Agreements with KINGS land to purchase units at the Each of the Agreements contains, inter alia, the following provisions:PURCHASE PRICEThe purchase price (the "Purchase Price") for the unit is Dollars ( ) Dollars in lawful money of Canada, payable as follows:(a) 10% of the Purchase Price, by cheque to the Vendor's solicitors in trust herewith as a deposit to be credited on account of the Purchase Price on the Closing Date; (b) 10% of the Purchase Price, by cheque to the Vendor's solicitors in trust on the date which is 60 days following the date of acceptance hereof by the Vendor as a further deposit to be credited on account of the Purchase Price on the Closing Date.

9 The Purchaser delivers herewith a post-dated cheque payable to the Vendor in the amount set out herein;(c) 10% of the Purchase Price, by cheque to the Vendor's solicitors in trust on the date which is 90 days following the date of acceptance hereof by the Vendor as a further deposit to be credited on account of the Purchase Price on the Closing Date. The Purchaser delivers herewith a post-dated cheque payable to the Vendor in the amount set out herein;(d) 20% of the Purchase Price, by cash or certified cheque to the Vendor as a further deposit on the Occupancy Date to be held pending completion or other termination of this Agreement and to be credited on account of the Purchase Price on the Closing Date; (e) On the Closing Date the Purchaser shall assume or give, at the Vendor's option, a first mortgage (hereinafter called the "Unit Mortgage) to be arranged by the Vendor and secured against the Unit in the principal amount of 50% of the Purchase Price on the terms and subject to the conditions provided for in Schedule "C" hereto.

10 The net proceeds of any Unit Mortgage will be payable to the Vendor on the Closing Date on account of the Purchase Price. The Purchaser shall have the option not to assume or give the Unit Mortgage by giving written notice to the Vendor sixty (60) days prior to the Closing Date in which event the equivalent amount of the Unit Mortgage shall be paid to the Vendor on the Closing Date;(f) the balance of the Purchase Price by cash or certified cheque on the Closing Date to the Vendor or as the Vendor may direct, subject to the adjustments and charges hereinafter set 1 - "Occupancy Date" shall be the 3rd day of March, 1997, or such extended date as may be established pursuant to Paragraph hereof, on which date the Purchaser is required to take possession of the "Closing Date" shall be the later of the Occupancy Date, or that date stipulated by the Vendor and being no later than (60) days after the date of registration of the 2 - TITLE AND FINANCIAL The Purchaser acknowledges that the Vendor's solicitor shall be permitted to release any funds held in trust to the Vendor for all costs associated with the Unit and/or the Building in which the Unit is located.