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EXHIBIT

1

ACT OF TERMINATION AND REVOCATION OF PREVIOUSLY EXISTING CONDOMINIUM PROPERTY REGIME BY THE CACTUS CORP.


AND


ACT OF DECLARATION BY

THE CACTUS CORP. CREATING AND ESTABLISHING A CONDOMINIUM PROPERTY

REGIME FOR LA MAISON CHARLES CONDOMINIUMS

TABLE OF CONTENTS

Recitals 2

TERMINATION 2

ARTICLE I.

DEFINITIONS 3

ARTICLE II

UNITS 7

ARTICLE III

COMMON ELEMENTS 9

ARTICLE IV

ASSOCIATION OF UNIT OWNERS 10

ARTICLE V

OWNERSHIP OF THE COMMON ELEMENTS 11

ARTICLE VI

USE OF THE COMMON ELEMENTS 12

ARTICLE VU

BUDGET 12

ARTICLE VIII

MORTGAGES 16

ARTICLE IX

SEPARATE REAL ESTATE TAXES 16

ARTICLE X

INSURANCE 17

ARTICLE XI

RECONSTRUCTION OR REPAIR OF CASUALTY DAMAGE 20

ARTICLE XII

MAINTENANCE, REPAIRS AND REPLACEMENTS 22

-1-

ARTICLE XIII

DECLARANT' S RIGHTS AS TO COMMON FACILITIES 23

ARTICLE XIV

ALTERATIONS, ADDmONS OR IMPROVEMENTS 23

ARTICLE XV

DECORATING 24

ARTICLE XVI

ENCROACHMENTS 24

ARTICLE XVII

SPECIAL LIMITED COMMON ELEMENTS

AND TRANSFERABILITY 25

ARTICLE XVIII

COMBINATION AND SUBDIVISION OF UNITS 25

ARTICLE XIX

USE AND OCCUPANCY RESTRICTIONS 27

ARTICLE XX

PROVISIONS GOVERNING THE ALIENATION

OR MORTGAGE OF THE CONDOMINIUM UNITS 27

ARTICLE XXI

COMPLIANCE AND DEFAULT 29

ARTICLE XXII

AMENDMENT 31

ARTICLE XXIII

NOTICES 32

ARTICLE XXIV

SEVERABILITY 32

ARTICLE XXV


NOW, TIIEREFORE, Declarant, as owner of the property described above and for the purposes set forth herein, hereby declares on behalf of itself, its successors, assigns and grantees and their respective heirs, successors, assigns and grantees, as follows:


TERMINATION


Declarant hereby affirmatively terminates, rescinds, abolishes and revokes the Previously Existing Condominium Property Regime as set forth in the Condominium Declaration dated August 6, 1982, registered in COB 783A, folio 922, the Supplemental and Amended Declaration dated August 29, 1983, registered in COB 788D, folio 174, Time Share Declaration dated November 20, 1983, registered in COB 793A, folio 401, the Supplemental and Amending Declaration to the Condominium Declaration Creating and Establishing a Condominium Property


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Regime dated January 20, 1984, registered in COB 793B, folio 321, and Act of Supplemental Condominium Declaration dated August 22, 1984, registered in COB 798C, folio 155 and the Act of Ratification and Confirmation of Condominium Property Regime dated August 31, 1993, registered in Conveyance Instrument No. 74617, COB 904, folio 338 of the conveyance records of Orleans Parish, Louisiana, it being Declarant's specific intent to terminate, revoke, rescind and forever dissolve the Previously Existing Condominium Property Regime and contemporaneously herewith on behalf of itself, its successors, assigns and grantees and their respective heirs, successors, assigns and grantees, creates and establishes the following condominium property regime.


ARTICLE I.

DEFINITIONS


As used in this Condominium Declaration or elsewhere in the Condominium Documents, or unless the context otherwise requires, the following tenns shall have the definitions contained in the Louisiana Condominium Act (La. R.S. 9:1121.101, et seq.) and as more particularly provided in this Article:



be amended.

Act. The Louisiana Condominium Act (La. R.S. 9:1121.101, et seq.), as it may


Assessment. That portion of funds required for the payment of expenses, such as

the cost of maintaining, operating, repairing, and managing the Condominium Property , that from time to time is assessed against and paid by all or some of the Unit Owners, as hereinafter provided.


Association. La Maison Charles Condominium Association, Inc., a Louisiana nonprofit corporation, and its successors, which is the governing body of the Unit Owners and the entity responsible through its Board of Directors for the administration and operation of the Condominium Property; the Articles of Incorporation and By-Laws as amended of the Association are annexed hereto and made a part hereof as Exhibit "C" and Exhibit "D", respectively.


Board. The Board of Directors of the Association.

Buildio& Plan. Collectively, the plans of the Buildings prepared by the Surveyor, consisting of three (3) separate sheets, attached hereto as Exhibit "E".


Buildina. The building situated upon the Land, together will all additions made thereto, which building constitutes a portion of the Condominium Property, as shown on the Plat of Survey and Building Plan. Whenever such a building designation is used in this Condominium Declaration, such designation shall refer to the building as shown on the Building Plan.


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Common Elements. All that portion of the Condominium Property, whether movable or immovable, that is not contained within the boundaries of any of the individual Units, including, without limitation, the following:


  1. The Land, the Parking Area shown on the Building Plan, and installations contained or located in or around the Parking Area shown on the Building Plan (including without li mitation, the drainage lines, conduits, pipes and electrical distribution lines shown on the Building Plan), fences (including structural components thereot), lobby, fitness room, roof deck, and planters and planting areas;


  2. The elevator and associated equipment;


  3. Those stairwells and hallways, or portions thereof, but only those stairwells and hallways, or portions thereof, shown and marked as Common Elements on the Building Plan;


  4. All foundations and structural components of any improveme nts constituting a portion of the Condominium Property (including, without limitatio n, exterior walls, walls divid ing Units, columns, beams, brackets, bridging, structural steel plates and connectors, and roofs), gutters and downspouts, railings and terraces.


  5. All water, sanitary sewer, electric power, heating, ventilation, and air conditioning pipes, ducts, conduits, wiring, panels, lines, and other associated equipment, except to the extent any of the foregoing (i) is located entirely within a Unit and serves such Unit exclusively, or (ii) is owned by any third party and leased to Declarant, the Association, or a Unit Owner;


(0 All other elements marked and shown as Common Elements on the Building

Plan;


(g) Any other portion of the Condominium Property not located in, or forming any part of, any of the Units·, and either (i) desirably or rationally of common use or benefit, or

  1. necessary to the existence, upkeep and safety of the Condominium regime established by this Declaration.


    Common Expenses. The expenses for which the Unit Owners will be assessed by the Association, which expenses shall include, but are not limited to, the actual or estimated costs of:


    1. Ad valorem taxes and other taxes of all kinds which may be levied against the Property and which are not levied against an individual Unit or Unit Owner;


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    2. Insurance, maintenance, management, operation, repair and replacement of and additions to the Common Elements and those parts of the Units as to which, pursuant to other provisions hereof, it is the responsibility of the Association to maintain, repair and replace;


( ) Utilities incurred in operation of the Units and the Common Elements not otherwise paid by any individual Unit Owner or Owners;


  1. Management and administration of the Association including, without limiting the same, compensation paid by the Association to a managing agent, accountant(s), attorney(s), and other employees;


  2. Liability, casualty and any other insurance carried by the Association with respect to designated parts of the Property;


(0 Any other item held by or in accordance with this Declaration or recorded amendment thereto, or the By-Laws to be a Common Expense.


(g) Expenses agreed upon as Common Expenses by the Board.


Condominium. The entirety of the Property as subjected to a condominium regime by this Declaration pursuant to the provisions of the Act.


Condominium Documents. This Condominium Declaration and the Exhibits annexed hereto as the same from time to time may be amended. Said Exhibits are as follows:


EXHIBIT A EXHIBITB EXHIBITC


EXHIBITD

Resolution of The Cactus Corp. Description of Land

Articles of Incorporation of La Maison Charles Condominium Association, Inc.

By-Laws of La Maison Charles Condominium Association, Inc.


EXHIBITE EXHIBITF EXHIBITG


EXHIBITH

EXHIBIT I

Building Plan Plat of Survey

Unit Owners Common Element Percentage of Ownership Interest and Monthly Condominium Association Assessment Initial Budget

Rules and Regulations of La Maison Charles Condominium


Condominium Plan. The survey of the Land and the Building by James H. Couturie, dated December 17, 1997, consisting of three (3) sheets.


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grantees.

Declarant. The cactus Corp., a Louisiana corporation, its successors, assigns and


Drdaration. This instrument, by which the Property is submitted to the provisions

of the Act, as hereinafter provided, and as such Declaration may be amended from time to time.


F1rst Mortaau. A privilege upon a condominium parcel voluntarily granted by the Owner thereof in favor of a Mortgagee for the purpose of providing security for the satisfaction of an obligation of such Owner, recorded in the mortgage records of the Parish of Orleans and having priority over all other privileges bearing against the condominium parcel other than those whose priority is expressly established by law.

Flrst Mort&qee. A Mortgagee that is the holder of an obligation secured by a First

Mortgage.


Land. That certain parcel of land and the servitudes appurtenant thereto situated in

the Parish of Orleans, State of Louisiana described on Exhibit "B" .


Limited Common Elements. All Common Elements serving exclusively a single Unit or one or more adjoining Units as an inseparable appurtenance thereto, the enjoyment, benefit or use of which is reserved to the lawful Occupants of such Unit or Units either in this Declaration, on the Condominium or by the Board. Limited Common Elements shall include, but shall not be limited to, the storage lockers located on the ground floor, balconies, parking areas or terrace areas accessible only from a Unit, as well as "air handlers", pipes, ducts, electrical wiring and conduits located entirely within a Unit or adjoining Units and serving only such Unit or Units and such portions of the perimeter walls, floors and ceilings, doors, vestibules, windows and entryways, and all associated fixtures and structures therein, as lie outside the Unit boundaries. The Limited Common Elements shall include but not be limited to the Special Limited Common Elements.


Majority or Majority of the Unit Owners. The owners of more than fifty percent (50%) of the undivided ownership of the Common Elements . Any specific percentage of Unit Owners means that percentage of Unit Owners who in the aggregate own such specified percentage of the entire undivided ownership of the Common Elements.


Morta=aa=e. Any mortgage, including First Mortgages, covering a Unit and the undivided interest in the Common Elements appurte nant thereto.


Morta=agee. A person secured by a Mortgage.

Occupant. A person or persons in possession of a Unit, regardless of whether said person is a Unit Owner.


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Person. Any natural person, firm, corporation, partnership, limited liability company, association, trust or other legal entity capable of holding title to immovable property.


Property. All of the right, title and interest of Declarant in the Land and the Building and all servitudes, rights and appurtenances belonging thereto, and all furniture, furnishings, fixtures and equipment intended for the mutual use, benefit or enjoyment of the Unit Owners.


Special Limited Common Elements. The twenty-three (23) parking spaces in the Building, which are subject to certain specific provisions as more particularly set forth in the Declaration.


llnit. Space occupying all or part of a floor in the Building, which space is not owned in common with the Unit Owners of other Units. Each Unit is designated as shown on the Condominium Plan. Provided, however, that no structural components of the Building, pipes, drains, wires, conduits, ducts, flues or shafts contained within a Unit and forming a part of any system serving more than one Unit or the Common Elements shall be deemed to be part of said Unit.


Unit Owner. The person or persons whose estates or interests, individually or collectively, aggregate ownership of a Unit and of the undivided interest in the Common Elements appurtenant thereto, but shall not Lr1clude those having an interest in a Unit merely as security for the performances of an obligation. Unless specifically provided otherwise herein, Declarant shall be deemed a Unit Owner so long as it is the legal title holder of any Unit.


ARTICLE II

UNITS.

l. Description. The legal description of each Unit shall consist of the identifying designation of such Unit as shown on the Condominium Plan. Every instrument of conveyance, mortgage or other instrument shall legally describe a Unit by its designation as shown in the Condominium Plan and every such description shall be deemed good and sufficient for all purposes, as provided in the Act.

  1. Immovable Property.Each Unit, together with an undivided interest in the Common Elements as hereinafter described, and all appurtenances to such Unit, shall for all purposes constitute a separate parcel of immovable property which may be owned, conveyed, transferred, and encumbered in the same manner as any other parcel of immovable property, independently of all other parts of the Condominium Property and subject only to the provisions of th·is Condominium Declaration


  2. Boundaries. The horizontal and vertical boundaries for the Units are as

    follows:


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    1. Horizontal Boundaries.


      The horizontal boundaries of a Unit shall consist of the volume of space measured horizontally from the unit side of the glass of the exterior walls or the unit side of the wood studs or steel beams or supports of the exterior walls, to the unit side of the wood studs or steel beams or supports of the drywall partitions separating one Unit from another, or one Unit from the corridors , or to the unit side of the concealed block work or concealed concrete structural members of the wall separating a Unit from corridors, stairs, elevators, mechanical equipment, spaces housing mechanical equipment serving common areas for more than one Unit.


    2. Vertical Boundaries.


    The vertical boundaries of the Unit shall be measured from the top of the unfinished, structural floor of the Unit to the underside of the unfinished structural floor or roof system of the building above the Unit.

  3. Unit Ownership. Ownership of a Unit shall include, and the same shall pass with each Unit as an inseparable component part of Unit ownership, whether or not separately described, conveyed, transferred or encumbered, the following:


    1. An undivided percentage interest in the Common Elements, subject to adjustments in such percentage interest, all as provided in this Condominium Declaration;


    2. The exclusive right to use certain Limited and Special Limited Common Elements, as provided in this Condominium Declaration;


    3. An obligation to pay a portion of the Common Expenses of the Association, as provided in this Condominium Declaration, and subject to the adjustments in such portion as provided in this Condominium Declaration;


    4. An undivided percentage interest in the Common Surplus, subject to adjustments to such undivided percentage interest, all as provided in this Condominium Declaration;


    5. Association membership, and all rights, privileges and obligations enuri ng therefrom, as provided in this Condominium Declaration;


    6. All servitudes established pursuant to this Condominium Declaration for the benefit of the Unit; and


    7. Such other interests, rights, and obligations as are provided in the Condominium Documents or by the Act.


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  4. Contents of Units Included. Each Unit includes, and each Unit Owner shall be responsible for, floors and ceiling finishes, dry wall on all perimeter walls and ceilings, all interior partition walls, all wall finishes, all cabinetry, all plumbing and heating fixtures and equipment such as refrigerators, dishwashers, floors, perimeter heating, ventilating and air conditioning ("HVAC") units (including the compressors or similar equipment outside the units), heating equipment, washing machines and dryers, ranges and other appliances, as may be affixed, attached or appurtenant to such Unit. Plumbing and heating fixtures and equipment as used in the preceding sentence shall include exposed water pipes attached to the fixtures, appliances and equipment and the fixtures, appliances and equipment to which they are attached, and any special pipes or equipment which a Unit Owner may install within a wall or ceiling, or under the floor, but shall not include water or other pipes, conduits, wiring or duct work within the walls, ceilings or floors. Each Unit also includes all lighting and electrical fixtures and appliances within the Unit and any special equipment, fixtures or facilities affixed, attached or appurtenant to the Unit to the extent located within a Unit and serving or benefitting only that Unit. Further, each Unit

    includes all pipes, conduits, wiring, devices, or equipment necessary for the provision of HVAC, electricity, water, telephone or cable television or other telecommunications service, alarm service, or other similar services or functions to the Unit, notwithstanding that any of same may be physically located outside of a Unit, as long as same relates solely to or serves the Unit and not to any such service being provided to any other Unit. By way of example without limitation, water pipes serving exclusively the Unit shall be considered part of the Unit, but water pipes serving more than one Unit shall be considered Common Elements.


  5. Modification. Except as provided by the Act and in this Declaration, no Unit Owner shall by deed, plat, administrative decree or otherwise, subdivide or in any other manner cause his Unit to be separated into any units or parcels different from the whole Unit as shown on the Condominium Plan.


  6. Condominium Parcel. Appurtenant to each Unit is the undivided interest in the Common Elements set forth on Exhibit "G" which, together with the Unit, comprise a condominium parcel as defined fn La. R.S. 9:1121. 103(7 ).


ARTICLE III

COMMON ELEMENTS.

  1. The Common Elements. The parcel of Land together with all servitudes, rights and appurtenances belonging thereto, the Building and all other construction and improvements situated on the Land.


  2. Limited Common Elements. Those areas of the Common Elements consisting of storage lockers, parking areas, terraces, decks, porches and other spaces not contained within Units that are designated as Limited Common Elements and associated with particular units on the Condominium Plan.


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  3. Special Limited Common EJem mts. Those twenty-three (23) parking spaces on the ground level of the Building which are Limited Common Elements reserved to the use of particular Units, but which are transferable or leasable between Unit Owners as described in Section XVII of this Declaration.


  4. Rules and Reeulations PromuI ated by the Association. No person, including any Occupant of a Unit, shall use the Units or the Common Elements or any part thereof, including the Limited Common Elements, in any manner contrary to or not in accordance with such rules and regulations pertaining thereto as may from time to time be promulgated by the Association or Manager.


  5. Covenant A ainst Partition. In order to effectuate the intent hereof and to preserve the Condominium and the condominium method of ownership, the Common Elements shall remain undivided and no person, irrespective of the nature of his interest in the Common Elements, shall bring any action or proceeding for partition or division of the Common Elements or any part thereof until the termination of the condominium regime established by this Condominium Declaration in accordance with provisions herein elsewhere contained or as provided by the Act, whichever first occurs.


    ARTICLE IV

    ASSOCIATION OF UNIT OWNERS.

    1. Oceanization. There has been or will be formed a homeowner's association having the name La Maison Charles Condominium Association, Inc. (the "Association"), a Louisiana non-profit corporation which shall be the governing body for all of the Unit Owners, for the maintenance, repair, replacement, administration and operation of the Condominium, as provided in the Act, this Declaration and the By-Laws. The Board of the Association shall be elected and shall serve in accordance with the provisions of the By-Laws. The fiscal year of the Association shall be determined by the Boa.rd, and may be changed from time to time as the Board deems advisable. The Association shall not be deemed to be conducting a business of any kind. All activities and all funds received by the Association shall be held and applied by it for the use and benefit of Unit Owners in accordance with the provisions of this Declaration and the By­ Laws. Each Unit Owner shall be a member of the Association so long as he is a Unit Owner. A Unit Owner's membership shall automatically terminate when he ceases to be a Unit Owner. Upon the conveyance or transfer of a Unit Owner's ownership interest to a new Unit Owner, the new Unit Owner shall simultaneously succeed to the former Unit Owner's membership in the Association. The aggregate number of votes for all members of the Association (the "Votes") shall be one hundred (100) and shall be divided among the respective Unit Owners in accordance with their respective percentages of ownership interest in the Common Elements as set forth in Exhibit "G" hereto.


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  1. Authorization. The Association shall have all the power and authority pennitted under the Act and is expressly authorized to carry out and perform all such actions as shall be required for the satisfaction of the obligations of the Association.


  2. Man ement. The Board shall have the authority to engage the services of an agent or management company to maintain, repair, replace, administer and operate the Property, or any part hereof, to the extent deemed advisable by the Board. The Board shall also have the authority (but shall not be obligated) to engage, supervise and control such employees as the Board deems advisable to clean and maintain all or any part of the Units to the extent the Board deems it advisable to provide such services for all or any portion of the Unit Owners. The cost of such services shall be a Common Expense.


  3. Non-Liability of the Directors, Board, Officers and Declarant. Neither the directors or the officers of the Association nor Declarant shall be personally liable to the Unit Owners for a mistake of judgment or for any acts or omissions of any nature whatsoever except for any acts or omissions found by a Court of competent jurisdiction to constitute gross negligence or fraud. The Unit Owners shall indemnify and hold harmless each of the directors, officers, and/or Declarant, and their respective heirs, executors, administrators, successors and assigns in accordance with the provisions of the By-Laws, and the Association shall carry such insurance as the Board may prescribe to protect the directors, officers and Declarant under said indemnity.


  4. Board's Determination Binding. In the event of any dispute or disagreement between any Unit Owners relating to the Property, or any questions of interpretation or application of the provisions of the Declaration or By-Laws, such dispute or disagreement shall be submitted to the Board. The determination of such dispute or disagreement by the Board shall be binding on each and all such Unit Owners, subject to the right of Unit Owners to seek other remedies provided by law after such determination by the Board.


ARTICLE V

OWNERSHIP OF THE COMMON ELEMENTS

Each Unit Owner shall be entitled to the percentage of ownership interest in the Common Elements allocated to the respective Unit owned by such Unit Owner, as set forth in Exhibit "G". The percentages of ownership set forth in Exhibit "G" shall remain constant unless hereafter changed by amendment to this Declaration, as provided in Article XXII or Article XXVI(4) of this Declaration, or unless hereafter changed by amendment to this Declaration consented to in writing by all Unit Owners, and, in either case, such amendment is recorded in accordance with the Act and this Declaration. Said ownership interests in the Common Elements shall be an undivided interest owned by the Unit Owners in accordance with their respective percentages of ownership. Except as provided in the Act and this Declaration, the ownership interests in the Common Elements shall remain undivided, and no Unit Owner shall bring any action for partition or division of the Common Elements, and any agreement or covenant to the


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contrary shall be void. No ownership of any Unit shall be conveyed, transferred, encumbered or otherwise affected separate from the ownership interest in the Common Elements which is appurtenant to such Unit. The undivided ownership interest in the Common Elements which is appurtenant to any Unit shall be deemed conveyed, transferred, encumbe red or otherwise affected with Unit, even though the legal description in the instrument conveying, transferring,

encumbering or otherwise affecting Unit may refer only to the fee title to that Unit and not expressly mention or describe the ownership interest in the Common Elements which is appurtenant to that Unit, or may refer to an incorrect interest percentage for that Unit.


ARTICLE VI

USE OF THE COMMON ELEMENTS

Each Unit Owner shall have the right to use or enjoy the benefits of the Common Elements (except the Limited and Special Limited Common Elements and portions of the Property subject to leases made by or assigned to the Association) in common with all other Unit Owners, as may be required for the purposes of access, ingress to, egress from, use, occupancy and enjoyment of the respective Unit owned by such Unit Owners. Such right to use the Common Elements shall extend to not only each Unit Owner, but also to his agents, servants, tenants, family members, invitees and licensees. Each Unit Owner shall have the right to the exclusive use and possession of the Limited and Special Limited Common Elements serving his Unit alone. Such rights to use the Common Elements, including the Limited and Special Limited Common Elements, shall be subject to and governed by the provisions of the Act, Declaration, By-Laws and rules and regulations of the Association and the Unit Owners shall use the Common Elements in such manner as will not restrict, interfere with or impede the use thereof by other Unit Owners. In addition, the Association shall have the authority to rent, lease, grant concessions or grant easements with respect to parts of the Common Elements, subject to the provisions of the Declaration and By-Laws. All income derived by the Association from leases, concessions or other sources shall be held and used for the benefit of the members of the Association, pursuant to such rules, resolutions or regulations as the Board _may adopt or prescribe.


ARTICLE VII

BUDGET.

  1. . Annual Bud2et. The Board shall cause to be prepared an estimated annual budget for each fiscal year of the Association (the "Annual Budget"). The Annual Budget shall make sufficient allowance for the payment of all Common Expenses anticipated to be incurred durin the fiscal year to which it applies.


    To the extent that the assessments and other cash income collected from the Unit Owners during the preceding year shall be n:1ore or less than the expenditures for such preceding year, 'the surplus or deficit, as the case may be, shall also be taken into account. The Annual


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    Budget shall also take into account the estimated net available cash income for the year, if any, from the lease, operation or use of the Common Elements. The Annual Budget shall provide for a reserve for contingencies for the year and a reserve for replacements, in reasonable amounts as determined by the board. The Annual Budget shall not require an assessment of Unit Owners for Common Expenses in an amount exceeding one hundred fifteen percent (115%) of the Annual Budget for Common Expenses for the preceding year unless such excess is approved by a majority vote of Unit Owners.


  2. Capital Reserve Fund. The Association shall have and maintain a capital reserve fund to be established as set forth hereafter. Commencing with the closing of the first Unit sold and for each Unit sold and conveyed thereafter each Purchaser of a Unit from Declarant shall be required to deposit with the Association a sum equal to two (2) months' assessment to the Unit based upon the Budget to establish a capital reserve fund. No Unit Owner shall be entitled to withdraw this deposit so long as the Condominium shall exist, but the deposit shall be transferred to the credit of any transferee of a Unit.


The Declarant shall not be required to deposit with the Association any payment with respect to the capital reserve fund for a period of twelve (12) months after the first sale of a Unit to a third party. Thereafter, Declarant shall deposit a sum equal to two (2) months assessment to the capital reserve account for all remaining unsold units. The Declarant shall collect such deposit from each initial purchaser of a Unit and shall be liable to cause the co ntribu tion thereof to the Association contemporaneously with the sale of each Unit by it.


3(a). Assessments. The Annual Budget for each fiscal year shall be approved by the Board and copies thereof shall be furnished by the Board to each Unit Owner not later than thirty (30) days prior to the beginning of such year. On or before the first day of each month of the year covered by the Annual Budget, each Unit Owner shal l pay as his Common Charges his allocated share of the Common Expenses, one-twelfth of his allocated share of the Common Expenses for such year as shown by the Annual Budget. Such allocated share for each Unit Owner (and each Unit Owner's share of common surplus, if any) shall be in accordance with his respective ownership interest in the Common Elements as set forth in Exhibit "G" except as to those items of expense which are specially allocated in non-proportionate amounts by the Board pursuant to the authority set forth in Paragra ph 4 of this Article VII. In the event that the Board shall not approve an Annual Budget or shall fail to determine new assessments for any year or shall be delayed in doing so, each Unit Owner shall continue to pay each month the amount of his respective assessment as last determined. Each Unit Owner shall pay his monthly assessment on or before the first day of each month as may be directed by the Board. No Unit Owner shall be relieved of his obligation to pay his assessment by abandoning or not using his Unit, the Common Elements, or any Limited Common Elements.


  1. Liability for Assessments. Each initial purchaser of a Unit from the Declarant shall be liable for all Assessments accruing against his Unit on and subsequent to the date of closing of the act of transfer of such Unit from the Declarant. Any purchaser from an


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    individual Unit Owner, except a purchaser at a judicial sale, shall be liable for all Assessments made against such Unit both prior to and subsequent to the acquisitio n by such Purchaser. A purchaser at a judicial sale shall be liable for all Assessments against the purchased Unit accruing after the sale, but shall not be liable for such Unit's unpaid Assessments which accrued prior to the acquisition of title to such Unit by such purchaser, except for any pro-rata re-allocation of such Assessments to all Units including the purchased Unit. Each Unit Owner shall be personally liable to the Association for all sums assessed against his Unit for his share of the Common Expenses. Joint owners of Units shall be liable jointly, severally, and in solido for such Assessments.


    Any Unit which because of damage or destruction has been withdrawn from the condominium regime in accordance with this Declaration and the Act; the Owner thereof shall be released from the obligations to pay Common Expenses and the Assessments therefor accruing after the date of such withdrawal.

  2. Interest Penalties and Liens. Assessments and installments due by Unit

)

Owners which are paid after the tenth (10th day of each month shall be subject to a late charge

of $ 100. All payments upon account shall be first applied to the late charge and then to the Assessment payment first due. Failure to pay any monthly installment of any Assessment shall, at the option of the Board, mature the entire annual Assessment for Common Expenses and the same shall be due and payable immediately upon written notice to the Unit Owner. The Unit Owner agrees to pay reasonable attorney's fees, and costs actually incurred by the Association, in connection with the collection of any Assessments. The Board may assert a lien against such Unit Owner's Unit in accordance with the Act. The lien for unpaid Assessments provided by the Act shall also secure court costs and reasonable attorney's fees incurred by the Association incident to the collection of such Assessment or enforcement of such lien. As provided in the Act, any lien imposed by the Association against a Unit shall be subordinate to the lien of any mortgage against such Unit duly recorded prior to the date of recordation of such lien in favor of the Association. The lien in favor of Association shall not be affected by a transfer of the Unit, except in connection with foreclosure by a superior lien holder.


  1. Non-Proportionate Aliocation of Assessments. The Board may, at its election and only to the extent necessary to accomplish a fair and equitable allocation of those costs of operation of the Condominium which are attributable to services which are enjoyed to a materially disproportionate extent by one or more Units and the occupants thereof or in the event of repairs or maintenance required on account of misuse, negligence, or violation of applicable rules on the part of any Unit owner, allocate the Common Expenses among the Units in a manner other than in proportion to their respective appurtenant interests in the Common Elements. Such costs and the rationale for the Board's allocation shall be clearly identified on each Annual Budget and shall not include any expense related to structural repair or replacement of the Building.

  2. Special Assessments. The Board may impose one or more special assessments during the course of a fiscal year for the purpose of payment for capital improvements


    F:\DOC\M\MAINS\l.AMA!SON\ACIT ERM.WPD -14- 12/29/1997 (10:11AM)

    to the Property. Provided, however, that any one (1) or more special assessments aggregating more than fifteen (15%) percent of the Common Expenses for a fiscal year shall require ratification by at least two-thirds (2/3) of all Unit Owners before imposition.


  3. Metered Electrical Service. The Building will receive its electrical service through several meters, one of which will serve the Common Elements and the remainder of which will serve the Units on the basis of one meter to each Unit. Each Unit Owner shall be solely responsible for their respective utilities; and, shall be required to contribute toward the Common Expense of electrical utilities to the Common Elements.


  4. Water Service. The Building has no gas service. The Building is served by one (1) common water meter. All cost of water service to the Units or to any Common Elements shall be borne by the Association as a Common Expense.


  5. Expenditures. Except for expenditures and contracts specifically authorized by the Declaration and By-Laws, the Board shall not approve any expenditure not provided for in the Annual Budget in excess of Five Thousand and No/100 ($5,000.00) Dollars, unless required for emergency repair, protection or operation of the Common Elements or Limited or Special Limited Common Elements, nor enter any contract for more than one (1) year without the prior approval of Owners entitled to two-thirds (2/3) of the Votes.


  6. Declarant's Liability For and Guar ntee Re!atin2 to Common Expenses.


    1. During the twelve (12) month period covered by the Initial Budget, Declarant shall not be obligated for the payment of any Common Charges assessed against it as the owner of any Units in the Condominium. In lieu thereof and in consideration of Declarant's having been released from such liability, Declarant shall pay all amounts in excess of those assessed to Unit Owners other than Declarant which may be required by the Association to cause the operation of the Association and its maintenance of the Building and the provision of the amenities and services contemplated by the Initial Budget whether such amount shall be greater than or less than the difference between the amount provided therefor in the Initial Budget and the Common Charges assessed to Unit Owners other than the Declarant.


    2. The Declarant shall not be required to deposit with the Association any payment with respect to the working capital reserve fund described in Paragraph 2 of this Article VII until twelve (12) months after the sale of the first unit to a third party, at which time Declarant shall deposit two (2) months association assessment into the capital reserve account for any Unsold Units. However, the Declarant shall collect such deposit from each initial purchaser of a l}nit and shall be liable to cause the contribution thereof to the Association contemporane­ ously with the sale of each Unit by it.


  7. Records and Certificates. The Association shall keep in its offices current copies of the Condominium Documents and shall maintain financial statements and accounting


    F:\DOC\M\MAINS\LA.\tAISON\ACTTERM. WPD -15- 12/29 / 1997 (10:1 1AM)

    records according to good accounting practices and as provided in the By-Laws of the Associations, which accounting records shall include:


    1. An itemized record of all receipts and expenditures; and


    2. A separate account for each Unit which shall indicate: (i) the name and address(es) of the Unit Owner, (ii) the amount and due date of each Assessment for Common Expenses pertaining to the Unit, (iii) amounts paid on the account by each Owner, and (iv) any balance due. A Unit Owner and his Mortgagee or a prospective purchaser of a Unit shall have the right to obtain from the Association a certificate showing the amount of unpaid Assessments with respect to the Unit.


Unit Owners may inspect the Condominium Documents and such financial statements and accounting records at the Association's offices during normal business hours upon reasonable notice to the Association or Manager.


ARTICLE VIII

MORTGAGES

Subject to the provisions of Articles XX and XXVI, each Unit Owner shall have the right to mortgage his respective Unit together with his respective ownership interest in the Common Elements. No Unit Owner shall have the right or authority to make or create or cause to be made or created from the date hereof any mortgage or other lien on or affecting the Property or any part thereof, except of his own Unit and the respective percentage interest in the Common Elements appurtenant thereto.


ARTICLE IX

SEPARATE REAL ESTATE TAXES


Taxes, assessments and other charges of any taxing or assessing authority shall be separately assessed to each Unit Owner for his Unit and his corresponding percentage of ownership in the Common Elements, as provided in the Act. In the event that such taxes or assessments for any year are not separately assessed to each Unit Owner, but rather are assessed on the Property as a whole, then each Unit Owner shall pay his proportionate share thereof in accordance with his respective percentage of ownership interest in the Common Elements, and, in said event, such taxes or assessments shall be a Common Expense. Without limiting the authority of the board provided for elsewhere herein, the Board shall have the authority to collect from the Unit Owners their proportionate share of taxes or assessments for any year in which tax.es are assessed on the Property as a whole.


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ARTICLE X

INSURANCE



Property:

The following provisions shall govern insurance coverage for the Condominium


  1. Authority to Purchase. Except for Builder's Risk and other

    insurance furnished by Declarant during renovation, the Association shall purchase, for the benefit of the Unit Owners and their respective Mortgagees, as their interests may appear, all casualty and, if the Board determines to purchase flood insurance, flood insurance policies on the Condominium Property. The Association shall provide for the issuance of certificates of insurance to Mortgagees upon request.

  2. Covera e. The Associatio n or Manager shall at all times, to the extent reasonably available, maintain insurance as follows:


    1. The Condominium Property, including the Buildings and all other insurable improvements upon the land (including, without limitation, the Common Elements and the Unit , but not including property supplied or added by Unit Owners to his Unit), and all personal property as may be owned by the Association and used in management of the Condominium (but not personal property of the Unit Owners) shall be insured against casualty loss in an amount (after application of any deductibles) not less than the full replacement cost of the insured property, exclusive of land, excavations, foundations, and other items normally excluded from such coverage. Such coverage shall afford protection against all risks of direct physical loss commonly insured against, including:


      1. Loss or damage by fire, and other hazards covered by the standard "extended coverage" endorsements;


      2. Loss or damage by flood under standard coverage provided by the National Flood Insurance Program, if the Board·, in its discretion, determines such coverage to be necessary;


      3. Such other risks as from time to time customarily shall be covered with respect to buildings similar to the Buildings in construction, location, and use, including, but not limited to, vandalism, malicious mischief, and windstorm damage.


    2. Comprehensive general liability insurance, including medical payments insurance, in such form and in such amounts as shall be required by the Board, including, but not limited to, coverage for all occurrences commonly insured against for death, bcxiily injury, and property damage arising out of or in connection with the use, ownership, or maintenance of the Common Elements. All liability insurance shall contain cross-liability endorsements to cover liabilities of the Unit Owners as a group to a particular Unit Owner.


      F:\DOC\M\MAINS\LAMAISON\ACITERM.WPD -17- 12129/1997 (10:11AM)

    3. Workmen's Compensation insurance to meet the requirements of

      law;


    4. Director's and Officers coverage, in such amounts, and containing such provisions, as may be reasonably required by a Mortgagee, protecting against acts of dishonesty by the Association's officers, directors, and employees responsible for handling funds, regardless of whether such persons are compensated for their services; and


    5. Insurance covering such other risks and hazards as the Board may from time to time determine necessary.

  3. Premiums. All premiums upon insurance policies purchased by the Association shall be paid by the Association and shall constitute a portion of Common Expenses.


  4. Insurance Policies. All insurance policies on the Condominium Property obtained and continued in effect by the Association for the benefit of the Unit Owners, as hereinabove provided, shall be written in the name of the Association, which shall act as trustee for each individual Unit Owner and his Mortgagee or lie n holder, if any. The Unit Owners and their Mortgagees or lien holders shall be beneficiaries, even though not expressly named in the policies, in the Shares in which the Unit Owners have an interest in the Common Elements, as provided in Article V hereinabove. Each policy shall contain a Louisiana standard mortgage clause in favor of each Mortgagee of the Units and shall provide that any loss thereunder shall be payable to such Mortgagees as their interest may appear, subject, however, to general "loss payment" provisions in favor of the Association, as herein provided.


    The Association shall be required to make every effort to secure insurance

    policies providing:


    1. Waivers of subrogation by the insurer as to any and all claims against the Association, its members, officers or the Board, and any of the Unit Owners and their respective families, servants, agents, employees, tenants, and guests;


    2. Waivers of defenses based upon co-insurance or acts of the insured (which shall include each Unit Owner);


    3. That each Unit Owner shall be an insured person under the policy with respect to liability arising out of his ownership of an interest in the Common Elements or membership in the Association;


    4. That the policies shall not be cancelable, invalidated, suspended, or substantially modified for any reason, including on account of the conduct of the Association, its members or the Board, or any of the individual Unit Owners, their families, servants, agents, or


      F:\DOC\M\MAINS\LAMAISON\ACITERM.WPD -18- 12/29/1997(10:11AM)

      guests, without at least thirty (30) days' prior written notice to each named insured, including Mortgagees of the Unit Owners;


    5. That the policies shall not be cancelable or voidable or that recovery thereunder will not be conditioned by reason of any act or omission of any Unit Owner, unless acting within the scope of his authority on behalf of the Association;


    (0 That the "no other insurance" clause in the policies shall exclude the individual Unit Owners' policies from consideration; and


    (g) That the insurance coverage provided by the policies obtained by the Association shall be primary and shall not be brought into contribution with other insurance in the name of Unit Owners or their Mortgagees.


  5. Association as Insurance Trustee. The Association is irrevocably designated as trustee for each of the Unit Owners and their Mortgagees, if any, for purposes of adjusting all claims for losses with the insurance carriers on all policies obtained and continued in effect by the Association, and for purposes of granting and executing releases upon payment of claims, and the Association shall have full control of the proceeds of any such policies for purposes of repair and reconstruction, as hereinafter provided in Article XI. All insurance policies purchased by the Association pursuant to this Article XI shall provide that all proceeds from such policies shall be payable to the Association, for the benefit of the Unit Owners and Mortgagees,

    as their interests may appear.


  6. Insurance Obtained by Unit Owners. Any Unit Owner may obtain for his own benefit or for the benefit of his Mortgagee, and at such Unit Owner's own expense , separate or additional insurance on the interest in his Unit , against loss by fire, flood, or other casualty which is covered by a blanket or master policy obtained and maintained in effect by the Association as hereinabove provided. An individual Unit Owner may also obtain for his own benefit and at his own expense insurance coverage for personal liability in excess of that covered by the blanket or master policies maintained by the Association and for casualty losses of any improvements made by an owner to the immovable property within his Unit, the personal property

    of the Owner or Occupant situated within the Unit and of other portions of the Condominium Property not covered by the master policy. Such insurance may be of the type of coverage generally referred to as, or similar to, "contents insurance" or "tenant improvements and betterments coverage" and shall contain the waiver of subrogation referred to in Subsection 4(a) above.


  7. Application of Imurnnce Proceecb. Proceeds of casualty insurance policies received by the Association, as trustee for the Owners and their Mortgagees or lien holders, shall be distributed as provided in Article XI.


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ARTICLE XI

RECONSTRUCTION OR REPAIR OF CASUALTY DAMAGE

  1. Casualty Affectin2 Common Elements and Units. In the event of destruction or damage to any part of both the Units and the Common Elements, reconstruction and repairs shall be made as follows:


    1. If the Board determines that less than two-thirds of the Units are rendered uninhabitable as a result of a fire or other casualty that damages or destroys one or more of the Buildings, the Association shall arrange for the prompt repair and restoration thereof unless

      (i) such reconstruction and replacement will be illegal under state or local health or safety statutes or ordinances, or (ii) the members of the Association, by a vote equal to at least seventy-five (75%) percent of the votes of the Association, elect not to rebuild. If it is determined that such Building(s) is (are) not to be reconstructed or repaired, then that part of the Condominium Property not to be repaired shall be withdrawn from the Condominium regime in accordance with the provisions of this Declaration and the Act.


      1. If the Board determines that more than two-thirds of the Units are rendered uninhabitable as a result of a fire or other casualty that damages or destroys the Building(s), the Association shall not repair the damage or restore the Buildings unless (i) the members of the Association, by a vote equal to at least seventy-five (75%) percent of the votes of the Association, elect to rebuild, and (ii) such reconstruction and replacement would be permitted under state or local health or safety statutes or ordinances. If it is determined that such Building(s) is (are) not to be reconstructed or repaired, then that part of the Condominium Property not to be repaired shall be withdrawn from the condominium regime in accordance with the provisions of this Declaration and the Act.


      2. Any restoration or repair shall be substantially in accordance with

        (i) the plans of the original Building(s) so restored or repaired or (ii) plans and specifications approved by the Board and the members of the Association by a vote equal to at least sixty-seven (67%) percent of the votes of the Association.


        Repairs and restoration of the Building(s) as provided herein shall include any damaged Units therein to the extent that portions of such Units are covered under the blanket or master fire and casualty policy or policies carried by the Association.


      3. If damage resulting from a casualty is to be repaired in accordance with the foregoing provisions, after the occurrence of a casualty causing damage to more than one Unit or any portion of both the Common Elements and any one or more of the Units, the Association shall obtain reliable and detailed estimates of the cost of repairs or replacements so as to place the damaged property in a condition as good as that existing before the casualty. The Board, acting as trustee, shall disburse the proceeds of all insurance policies to contractors engaged in such repair and restoration through appropriate progress payments. Any excess of


      F:\DOC\M\MAlNS\LAMAI.SON\ACTl'ERM.Wl'D -20- 12/29/1997 (10:11AM)

      insurance proceeds over the costs of such repairs and restoration shall be distributed to each Unit Owner in accordance with his respective Share, or if there is a mortgagee endorsement, then jointly to each such Unit Owner and Mortgagee of such Unit Owner. Any costs of such repairs and restoration·in excess of available insurance proceeds shall constitute a Common Expense, and the Board shall make Assessments against all Unit Owners in sufficient amounts to provide funds to pay the estimated costs of repairs and reconstruction of damaged or destroyed Common Elements. Additional Assessments may be made at any time during or following the completion of construction. All such Assessments shall be divided among the Units in accordance with each Unit Owner's Share.


      (0 If the entire Condominium is not repaired or replaced, (i) the insurance proceeds attributable to the damaged Common Elements shall be used to restore the damaged area to a condition compatible with the remainder of the Condominium unless the Condominium is terminated, in which case none of the insurance proceeds shall be applied to restoration, (ii) the insurance proceeds attributable to Units and Limited Common Elements that are not rebuilt shall be distributed to the owners of those Units and the owners of the Units to which those Limited Common Elements were assigned, and (iii) the remainder of the proceeds shall be distributed to all the Unit Owners in accordance with each Unit Owner's Share. If the Unit Owners vote not to rebuild a particular Unit, that Unit's entire Common Element Interest, votes in the Association, and common expense liability shall be reallocated under Section 1122.112 of the Act as if the Unit had been condemned, and the Association shall prepare, execute, and record an amendment to the declaration reflecting such reallocations.


  2. Casualty Affecting Common Elements Exclusively. If only the Common Elements, or portions thereof, are destroyed or damaged, said portions shall be reconstructed or repaired by the Association.


  3. Casualty Affecting Units Exclusively. If damage or destruction occurs only to those parts of one or more Units for which the responsibility of maintenance and repair is that of the individual Unit Owner, then the Unit Owner shall be responsible for recon­ struction and repair or replacement after casualty. If any portion of the insurance proceeds payable to the Association upon occurrence of a casualty covered under the blanket or master policy is payable on account of damages the reconstruction and repair of which is the responsibil­ ity of the individual Unit Owner, then the Association shall pay over such portion of any insurance proceeds to the Unit Owner, or if there is a mortgagee endorsement, then to the Unit Owner and Mortgagee jointly, who shall use such proceeds for repair and reconstruction of the damaged or destroyed portions of the Unit substantially in accordance with the original plans and specifications of the Unit or in accordance with such other plans and specifications as may be approved by the Boarq.-


  4. Loss of Use. Neither Declarant, the Association, nor any Unit Owner shall be obligated to compensate any Unit Owner for loss of use and occupancy of his Unit pending reconstruction or termination of the Condominium.


f :\DOl..,""\M\MA.D'<\Sl.AMAJSON\ACIT ERM.WPO -21- 12/29/1997 (10: 11AM)

ARTICLE XII

MAINTENANCE, REPAIRS AND REPLACEMENTS


l.(a) Except to the extent the Association provides (at its option and discretion) maintenance of the Units for Unit Owners, each Unit Owner, at his own expense shall be responsible for all maintenance of repairs to and replacements within his own Unit, and any Limited or Special Limited Common Elements allocated or assigned to his exclusive use. All repairs to Limited or Special Limited Common Elements shall be of materials and methods of construction consistent with those originally utilized unless otherwise approved by the Board. Maintenance of, repairs to and replacements within the Common Elements, including the roof and parapets shall be the responsibility of and shall be furnished by the Association. The cost of maintenance of, repairs to and replacements within the Units, to the extent the Board elects to provide such services, and within the Common Elements shall be part of the Common Expenses, subject to the By-Laws, rules, and regulations of the Association. At the discretion of the Board, maintenance of, repairs to and replacements within the Limited or Special Limited Common Elements may be assessed in whole or in part to Unit Owners benefitted thereby, and, further, at the discretion of the Board, the Association may direct Unit Owners who stand to be benefitted by such maintenance of, repairs and replacements in the name and for the account of such benefitted Unit Owners, pay the cost thereof with their own funds and procure and deliver to the Association such lien waivers and contractor's and subcontractor's sworn statements as may be required to protect the Property from all mechanics' or materialmen's lien claim that may arise therefrom.


  1. Unless and until provided otherwise by the Association in an amendment to this Declaration, all repairs and maintenance to any fixtures, equipment, devices, pipes, conduit, wiring, ductwork, or other similar items that serve or are connected with the plumbing, electrical, HVAC, cable television or telephone or other telecommunications, alarm service, or other similar services or functions serving a Unit, whether located physically within or outside of a Unit, shall be performed by or through the Declarant, Board or Manager, at the expense of the Unit Owner but subject at all times to the contro l of Declarant, Board or Manager, so as to assure uniformity of quality of work and protection of Common Areas and Common Elements.


  2. In addition to the discretionary authority provided therein for maintenance of all or any portion of the Units, the Board shall have the authority to maintain and repair any Unit , if such maintenance or repair is reasonably necessary in the discretion of the Board to protect the Common Elements or preserve the appearance and value of the Property, and the Unit Owner of said Unit has failed or refused to perform said maintenance or repair within a reasonable time after written notice of the necessity of said maintenance or repair delivered by the Association, and the Association shall levy a special assessment against the Unit of such Unit Owner for the cost of said necessary maintenance or repair.


  3. If due to the act or negligence of a Unit Owner, or his agent, servant, tenant, family member, customer, patient, invitee, or licensee, damage shall be caused to the Common


    F:\DOC\M\MAINS\LAMAISONIACTrERM.WPD -22- 12129/1997 (10:11 AM)

    Elements or to a Unit owned by others, or maintenance, repair or replacement are required which would otherwise be a Common Expense, then such Unit Owner shall pay for such damage or such maintenance, repair or replacements, as may be determined by the Board; however , the provisions of this Article are subject to the provisions of Article X hereof providing for waiver of subrogation rights with respect to casualty damage insured against under the policies of insurance maintained by the Association.


  4. The authorized representatives of the Association shall be entitled to reasonable access to the individual Units and Limited or Special Limited Common Elements as may be required in connection with the preservation of any individual Unit, Limited or Special Limited Common Elements in the event of an emergency, or in connection with maintenance of, repairs or replacements, within the Common Elements, Limited or Special Limited Common Elements of any equipment, facilities, or fixtures affecting or serving other Units, Common Elements and Limited and Special Limited Common Elements or to make any alteration required by any governmental authority and in order to carry out the intent and purpose of this paragraph, there is specifically granted to the Board and its authorized representative, servitudes through the units and common elements for maintenance, repair and/or replacement of portions of the Units and Common Elements. Use of these servitudes, however, for access to the individual Units shall be limited to reasonable hours, except that access may be had at any time in case of emergency.


ARTICLE XIII

DECLARANT'S RIGHTS AS TO COMMON FACILITIES

Notwithstanding anything contained in this Declaration to the contrary, Declarant hereby reserves and retains unto itself or its designee, the right and privilege (but not the obligation) to (a) operate and promulgate rules relating to, and to maintain, repair, replace, improve or add to, at the expense of the Association as a Common Expense, any and all areas and facilities existing for common use and/or (b) new Common Elements by amendment to this Declaration and/or (c) erect additional improvements or other constructions or make alterations to any Limited or Special Limited Common Elements not associated with a Unit that has been sold, until such time as Declarant has sold Units which correspond, in the aggregate, to ninety percent (90%) of the undivided ownership of the Common Elements, as set forth in Exhibit G to this Declaration. The Board, the Association and all Unit Owners shall be bound by and shall comply with any action taken by Declarant pursuant to this Article XIII.


ARTICLE XIV

ALTERATIONS. ADDITIONS OR IMPROVEMENTS

Except as provided in Article XV herein, no alteration of any Common Elements, or any additions or improvements thereto, shall be made by any Unit Owner without the prior written approval of the Board. Any Unit Owner may make alterations, additions or improvements within the Unit of the Unit Owner without the prior written approval of the Board, but such Unit


F:IDOC\M\MA.INS\LAMAlSON\ACITERM.WPD -23- 12/29/1997 (10:11AM)

Owner shall be responsible for any damage to other Units, the Common Elements, the Property, or any part thereof, resulting from such alterations, additions or improvements.


ARTICLE XV

DECORATING


Each Unit Owner, at his own expense, shall furnish and be responsible for all decorating within his own Unit and Limited Common Elements serving his Unit, as may be required from time to time, including wall papering, paneling, floor covering, lighting other than building standard and other furnishings and decorating. Each Unit Owner shall be entitled to the exclusive use of the interior surfaces of the perimeter walls, floor and ceilings of his Unit, and any balconies and terraces constituting a part thereof, and such Unit Owner shall maintain said interior surfaces in good condition at his sole expense, as may be required from time to time. Said maintenance and use of interior surfaces shall be subject to the rules and regulations of the Association, but each Unit Owner shall have the right to decorate such interior surfaces from time to time as he may see fit and arhis sole expense. Decorating of the Common Elements (other than interior surfaces within the Units) and any redecorating of Units, to the extent such redecorating of Units is made necessary by damage to Units caused by maintenance, repair or replacement of the Common Elements by the Association shall be furnished by the Association as part of the Common Expenses. No Unit Owner shall decorate any portion of the Limited Common Elements visible from outside such Unit in any manner which detracts from the appearance of the Building without the approval of the Board, which approval may be arbitrarily withheld.


ARTICLE XVI

ENCROACHMENTS

If any portions of the Common Elements shall actually encroach upon any Unit , or if any Unit shall actually encroach upon any portions of the Common Elements, or if any Unit shall actually encroach upon another Unit, as the Common Elements and Units are shown by the Condominium Plan, there shall be deemed to be mutual easements in favor of the Owners of the Common Elements and the respective Unit Owners involved, to the extent of such encroachments, so long as the same shall exist.


In interpreting acts of sale, mo rtgages , the Condominium Plan and building plans and specifications, the existing physical boundaries of a Unit or of a Unit reconstructed in substantial accordance with the original plans thereof shall be conclusively presumed to be its boundaries rather than the metes and bounds expressed in the act of sale, mortgage, the Condominium Plan or building plans and specification, regardless of settling or lateral movement and regardless of minor variance between boundaries shown on the building plans and specifica­ tions or in the deed and those of the Units.


F:\DOCIM\MA!NS\LAMAI SON\ACTTERM.WPD -24- 12/29/1997 (10:11AM)

ARTICLE XVII

SPECIAL LIMITED COMMON ELEMENTS

AND TRANSFERABILITY

  1. Parkin Spaces. There are twenty-three (23) parking spaces on the ground floor of the Building. These parking spaces have been designated Special Limited Common Elements. A Unit Owner who purchases a Special Limited Common Element shall have the right to use and enjoy the particular parking pace(s) which shall be freely transferable or leaseable but only to another Unit Owner, after following the registration procedures described in the Declaration. Following a transfer thereof the said parking space shall be a Special Limited Common Element appurtenant to the Unit owned by the transferee Unit Owner.


  2. The Limited Common Elements may not be transferred between Unit Owners, except for the Special Limited Common Elements as described in subsection 1 and 3 herein.


  3. The ownership of the Special Limited Common Elements may be transferred between Unit Owners provided that such transfer is made in compliance with the Act and the re.quirements of this Article XVII Sections 1 and 3. Rights and obligations with respect to any of the Special Limited Common Elements shall not be affected, nor shall any transfer thereof be effective, unless such transfer is in compliance with requirements of this Article XVII Sections 1 and 3. Each such transfer shall be made pursuant to this Declaration approved by the Association and executed by all Unit Owners who are parties to the transfer. No such transfer shall be effective as to third persons until such act is recorded, which recordation shall be accomplished at the transferee's cost. Any lease of a parking space must be in writing, may only be to another unit owner or tenant of a unit owner and must comply with the provisions of Paragraph XX hereinafter, except the lease period may be month to month.


ARTICLE XVIII

COMBINATION AND SUBDIVISION OF UNITS

  1. Combination. A Unit may be combined with an adjacent Unit or Units, and made a part thereof, for use together with such adjacent Unit or Units (thereby forrning a new larger Unit), in compliance with the Act and the following provisions. The Unit Owner or Unit Owners desiring to make such combination shall make written application to the Board requesting an amendment to this Declaration (including the ) and containing (i) a survey of the proposed alterations of the affected Units and the affected Common Elements and, (ii) a request for reallocation to the new Unit to be created by such proposed transfer of the percentages of interest in the Common Elements appurtenant to the Units to be combined. No such combination shall be effective unless first approved in writing by the Board. If so approved by the Board, such proposed combination shall be effective upon recordation of an amendment to this Declaration, consistent with and reflecting said combination, and executed by the Unit Owner or Owners of the Units involved therein, together with an amended Condominium Plan, in accordance with the Act.


    F:\DOC\M\MAINS\LAMAISONIACIT ERM. Wl'D -25- 12/29/1997 (10:11AM)

    Any expenses incurred in connection with accomplishing any such combination, as provided hereunder, including without limitation, attorneys fees, shall be paid by the Unit Owners of the Units involved, and such Unit Owners shall be jointly and severally liable for the payment thereof. That part of the.CommonElements separating and located between and exclusively serving two or more adjacent Units used together (including, without limitation, portions of any hallway and any walls), may be altered to afford ingress and egress to and from such Units and to afford privacy to the Occupants of such Units when using such Common Elements, and that part of the Common Elements so altered may be used by the Unit Owner or Owners of such Units as a licensee pursuant to a license agreement with the Association, provided (i) such alterations shall not weaken, impair, or endanger any of the Common Elements or any such Unit, (ii) the Unit Owner or Owners desiring to make such alterations shall notify the Board of the nature thereof not later than ten (10) days prior to commencing work; (iii) the expense of ma.king such alterations shall be paid in full by the Unit Owner or Owners making such alterations; (iv) such Unit Owner or Owners shall pay in full the expenses of restoring such Common Elements to their condition prior to such alteration in the event such Units shall cease to be used togethe r, as aforesaid; and (v) such alteration shall not interfere with use and enjoyment of the Common Elements (other then the aforesaid part of the Common Elements separating such adjacent Units), including without limitation, reasonable access and ingress to and from the other Units in any hallway affected by such alteration.


  2. Subdivision by Declarant. Declarant may subdivide, for purposes of sale or lease, any Unit. A subdivision by Declarant of a Unit shall be accomplished by Declarant's recordation of a revised Condominium Plan showing, with the same level of detail and accuracy as contained on the original Condominium Plan, the new Units established thereby, together with Declarant's declaration of its intent to establish such new Units setting forth the ownership interest in the Common Elements appurtenant to each such newly-established Unit and submitting to the provisions of this Declaration any new Common Elemen ts, whether structural or spatial in nature , installed or established by Declarant in order to accomplish such subdivisio n. There shall be no change from the percentage of ownership appurtenant to the original, subdivided Unit to the aggregate of the percentages of ownership which are appurtenant to the newly-established Units. Declarant shall promptly deliver an executed counterpart of its amendment to this Declaration and of the amended Condominium Plan to the Association for its records.


  3. Subdivision by Other Unit Owners. A Unit may be subdivided into two or more Units. The Unit Owner or Unit Owners, other than the Declarant, desiring to make such subdiv ision shall make written application to the Board requesting an amendment to this Declaration (including the Condominium Plan) and containing (i) a survey of the proposed alterations of the affected Unit and any affected Common Elements and, (ii) a request for reallocation to the new Units to be created by such resubdivision of the percentages of ownership interest in the Common Elements appurtenant to the Unit to be subdivided. No such resubdivision shall be effective unless first approved in writing by the Board. If so approved by the Board, such proposed resubdivision shall be effective upon recordation of an amendment to this Declaration, consistent with and reflecting said combination, and executed by the Unit Owner or Owners of the Units involved therein, together with an amended Condominium Plan, i accordance with the Act.


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    Any expenses incurred in connection with accomplishing any such resubdivision, as provided hereunder, including without limitation, attorneys fees, shall be paid by the Unit Owner of the Unit involved, and such Unit Owner shall be jointly and severally liable for the payment thereof.


  4. Incorporation of Common Elements. That part of the Common Elements separating and exclusively serving two or more adjacent Units used together (including, without limitation, portions of any hallway and any walls), may be altered to afford ingress and egress to and from such Units and to afford privacy to the Occupants of such Units when using such Common Elements, and that part of the Common Elements so altered may be used by the Unit Owner or Owners of such Units as a licensee pursuant to a license agreement with the Association, provided (i) such alterations shall not weaken, impair, or endanger any of the Common Elements or any such Unit, (ii) the Unit Owner or Owners desiring to make such alterations shall notify the Board of the nature thereof not later than ten (10) days prior to commencing work; (iii) the expense of making such alterations shall be paid in full by the Unit Owner or Owners making such alterations; and (iv) the license shall terminate upon cessation of the joint use of the Units served by such Common Elements.


ARTICLE XIX

USE AND OCCUPANCY RESTRICTIONS

l. !he. No Unit shall be used for any purpose other than as a residence (full or part-time) for the Unit Owner, his family or his permitted tenants. Unit Owners, their families and permitted tenants may use their units as an ancillary or secondary facility to an office established elsewhere so long as their principal use of the Unit is for residential purposes and so long as there are no employees of such Unit Owner or other person regularly employed at the Unit.


2. Occupancy. No Unit shall be occupied, even for a permitted use, by more than one (1) person making such Unit his primary place of abode for each two hundred and fifty

(250) square feet of floor area within the Unit.


ARTICLE XX

PROVISIONS GOVERNING THE ALIENATION

·OR MORTGAGE OF THE CONDOMINIUM UNITS


  1. - No Unit Owner may let, rent or lease less than the entirety of his Unit nor may he do so (a) for a term of less than six (6) months -a nd (b) other than pursuant to a written agreement of lease in which the proposed occupant of the Unit shall have acknowledged receipt of the Rules and Regulations of the Condominium and agreed to conform thereto. An executed counterpart of such lease shall be delivered to the Association prior to commencement of occupancy by any tenant thereunder. Every lease and renewal thereof is subject to the prior approval of the Association. Such approval will not be unreasonably withheld or delayed. If a


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    tenant has violated any of the Rules and Regulations of the Association, withholding of approval of any new lease or renewal with such tenant shall be deemed to be reasonable.


  2. Sale of Units. Any sale of a Unit by a Unit Owner shall be subject to the requirements of the Act and in particular Section 1124.107 thereof. Prior to any such sale or the execution of a contract to sell any such Unit, or otherwise before conveyance, the Unit Owner or other person selling the Unit for such Unit Owner shall submit to the buyer the following information required by law:


    1. Copy of this Condominium Declaration , with all exhibits and amendments thereto, except for the Plat of Survey and Building Plan;


    2. Copy of the Articles of Incorporation and By-Laws of the Association, and all amendments thereto;


    3. Certificate containing the following:


      1. Statement setting forth the amount of any current Common Expense Assessments;


      2. Statement of any capital expenditures approved by the Association for the current and two next succeeding fiscal years;


      3. Statement of the amount of any reserves for capital expenditures and of any portions of those reserves designated by the Association for any specified projects;


      4. Most recent balance sheet and income and expense statement of the Association, if any;


      5. Current operating budget of the Association, if any;


      6. Statement of any unsatisfied judgments against the Association and the status of any pending suits to which the Association is a party; and,


      7. Statement describing any insurance coverage provided by the As­ sociation.


    The Unit Owner may also be required to provide other information in accordance with the Act. The Association shall provide to any such Unit Owner, for such reasonable fees as may be set by the Association, copies of all necessary documents and information which such Unit Owner may need in order to sell his Unit in accordance with the provisions of law.


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  3. Assessments. Except as may otherwise be provided in this Condominium Declaration, no Unit Owner shall voluntarily transfer, sell, convey, mortgage, or lease his Unit unless or until he shall have paid in full any charges assessed against his Unit.


  4. Morf.&a&e. No Unit Owner other than Declarant may mortgage a Unit or any interest in it without the approval of the Association , except to an Approved Mortgagee. The approval of any other mortgagee may be upon conditions determined by the Association or may be arbitrarily withheld.

  5. Exceptions. The foregoing provisions of this Article XX shall not apply in the following instances:


    1. The lease, or sublease of any Unit to Declarant, or the lease or sublease of any Unit by Declarant.


    2. Any lease or sublease by a Unit Owner to a party approved by Declarant or made through the auspices of the Declarant.


  6. Unauthorized Transaction. Any mortgage, sale, lease or sublease not authoriz.ed pursuant to the terms of this Declaration shall be void unless subsequently approved by the Association.


ARTICLE XXI

COMPLIANCE AND DEFAULT

  1. General. Each Unit Owner shall be governed by and comply with the terms of the Condominium Documents and of the rules and regulations adopted pursuant thereto, as the same may be amended from time to time. In accordance with the Act, all of the provisions hereof shall be deemed to have the force·of law as among individual Unit Owners. A default shall entitle the Association or other Unit Owners to the relief set forth below.


  2. Cure of Default. In the event of default by any Unit Owner, the Board shall have the authority to direct the Association to take whatever action may be necessary, in its. discretion, to correct such default. Any expenses incurred by the Association shall be assessed against the defaulting Unit Owner and Unit owned by such Unit Owner.


3.(a) Remedies. In the event of any violation of the provisions of the Act, Decl8.!ation, By-Laws or rules and regulations of the Board or Association by any Unit Owner (either by his own conduct or by the conduct of any other Occupant of his Unit) the Association, or its successors or assigns, or the Board, or its agent, shall have each and all of the rights and remedies which may be provided for in the Condominium Act, Declaration, By-Laws, or said rules and regulations, or which may be available at law or in equity, and may prosecute an action or


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other proceedings against such defaulting Unit Owner and/or others for enforcement of any lien and the appointment of a receiver for the Unit and ownership interest of such Unit Owner, or for damages or injunction or specific performance or for judgment for payment of money and collection thereof. or for any combination of remedies, or for any other relief. All expenses of the Board in connection with any such actions or proceedings, including court costs and attorney's fees and other fees and expenses and all damages, liquidated or otherwise, together with interest thereon at the maximum lawful rate per annum until paid, shall be charged to and assessed against such defaulting Unit Owner, and shall be added to and deemed part of his respective share of the Common Expenses, and the Board shall have a lien for all of the same, as well as for non-payment of his respective share of the Common Expenses, upon the Unit and Ownership interest in the Common Elements of such defaulting Unit Owner and upon all of his additions and improvements thereto and upon all of his personal property in his Unit or located elsewhere on the Property; provided, however, that such lien shall be subordinate to the lien of a prior, recorded Mortgage on the interest of such Unit Owner, except for the amount of the proportionate share of said Common Expenses which become due and payable from and after the date on which the said mortgagee either takes possession of the Unit, or accepts a conveyance of its mortgage. This Article XXI shall not be amended, changed, modified or rescinded without the prior consent of all Approved Mortgagees.


  1. In the event of any such default by any Unit Owner, the Board and the Association, if so authorized by the Board, shall have the authority to correct such default, and to do whatever may be necessary for such purpose and all expenses in connection therewith shall be charged to and assessed against such defaulting Unit Owner. Any and all such rights and remedies may be exercised at any time and from time to time, cumulatively or otherwise, by the Board.


  2. The violation of any restriction or condition or regulation adopted by the Board or the breach of any covenant or provision herein contained, shall give the Board the right, in addition to any other rights provided for in this Declaration, (a) to enter upon the Unit, or any portion of the property upon which, or as to which such violation or breach exists and to summarily abate and remove, at the expense of the defaulting Unit Owner, any structure, thing or condition that may exist thereon contrary to the intent and meaning of the provisions hereo f, and the Board, or its employees or agents, shall not thereby be deemed guilty in any manner or trespass; or (b) to enjoin, abate or remedy by appropriate legal proceedings, either at law or in equity the continuance of any breach; or (c) to take possession of such Unit Owner's interest in the property and to maintain an action for possession of such Unit in the manner provided by law.


  1. No Waiver of Rights. The failure of the Association or Unit Owner to enforce any right, provision, covenant, or condition which may be granted by the Condominium Documents shall not constitute a waiver of the right of the Association or Unit Owner to enforce such right, provision, covenant, or condition.


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  2. Cumulation of Ri hts. All rights, remedies, and privileges granted to the Association or a Unit Owner pursuant to any terms, 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 exercise of such other and additional rights, remedies, or privileges as may be granted to such party by the Condominium Documents or by law.


    ARTICLE XXII

    AMENDMENT

    The provisions of this Declaration may be changed, modified or rescinded by an instrument in writing setting forth such change, modification or rescission and signed and acknowledged by Unit Owners, including Declarant, owing not less than sixty-six and two-thirds (66.66%) percent of the total ownership of Common Elements, provided, however, that all Approved Mortgagees of record have been notified by certified mail of such change, modification or rescission, and an affidavit by the secretary of the Association certifying to such mailing is made a part of such instrument. The percentage ownership of the Common Elements provided for in this Declaration shall not be amended or modified without the consent of all Unit Owners and of all Approved Mortgagees.


    However, if the Act, the Declaration or the By-Laws require the consent or agreement of all or any specified percentage of Unit Owners or of all or any specified percentage of Approved Mortgagees for any action specified in the Act or in this Declaration, then any instrument changing, modifying or rescinding any provision of this Declaration, with respect to such action shall be signed by all or the specified percentage of the Unit Owners and be accompanied by the written conse nt of all of the specified percentage of Approved Mortgagees as required by the Act or this Declaration.


    Declarant shall have the authority, without the joinder or consent of any other party including specifically but not by way of limitation, a Unit Owner or mortgagee of a unit, to make any amendment of this Declaration necessary to clarify any apparently con flicting provisions hereof and/or to correct any mistakes or errors of a clerical nature resulting from typographical or similar errors.


    Any change, modification or rescission, whether accomplished under any one or more of the provisions of the preceding paragraphs, shall be effective upon filing of such instrument in the Conveyance Records for the Parish of Orleans, State of Louisiana; provided, however, that no provision in this Declaration may be changed, modified or rescinded so as to conflict with the Act.


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    ARTICLE XXIII

    NOTICES

    Notices provided for in the Act, Declaration or By-Laws shall be in writing, and shall be addressed to the Declarant or the Association, as the case may be, at:


    Declarant: The Cactus Corp.

    3801 St. Charles Avenue

    New Orleans, Louisiana 70115 ATTN: William P. Mains


    Association: La Maison Charles Condominium Association, Inc.

    3801 St. Charles Avenue

    New Orleans, Louisiana 70115 ATIN: William P. Mains


    or at such other address as hereinafter provided. Any Unit Owner may designate an address or addresses for notices to them, respectively, by giving written notice to the Association. In the absence of a designated address, all notices to a Unit Owner shall be addressed to such Unit Owner's Unit. Notices addressed as above shall be deemed delivered when mailed by United States mail with postage prepaid, or when delivered in person.


    Upon written request to the Association, any Approved Mortgagee shall be given a copy of all notices permitted or required by this Declaration to be given to the Unit Owner whose Unit is subject to such encumbrance.


    ARTICLE XXIV

    SEYERABILITY

    _ If any provision of the Declaration or By-Laws, or any section, sentence, clause, phrase, work, or the application thereof in any circumstance, is held invalid, the validity of the remainder of this Declaration and the By-Laws and the application of any such provision, section, sentence, clause, phrase or word in any other circumstances shall not be affected thereby and the remainder of this Declaration or the By-Laws shall be construed as if such invalid part was never included therein.


    ARTICLE XXV

    RIGHTS AND OBLIGATIONS

    Each grantee of the Declarant, by the acceptance of a conveyance from the Declarant, accepts the same subject to all restrictions, liens and charges, and the jurisdiction, rights


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    and powers created or reserved by or acknowledged to exist as a priority right in this Declaration. All rights, benefits and privileges of every character hereby imposed shall bind any person having at any time any interest or estate in said Unit, and shall inure to the benefit of such grantee in like manner as though the provisions of this Declaration were recited and stipulated at length in each and every conveyance or contract for conveyance.


    ARTICLE XXVI

    PROTECTION OF APPROVED MORTGAGEES

    F.ach Approved Mortgagee that is the holder of a First Mortgage upon a Unit in the Condominium shall have the benefit of the following provisions:

    l. Notice to Association. A Unit Owner who mortgages his Unit shall notify the Board giving the name and address of his Approved Mortgagee. The Board shall maintain adequate, current records of the names and addresses of each Approved Mortgagee.


    1. Notice of Default. The Association shall notify an Approved Mortgagee in writing, upon request of such Approved Mortgagee, of any default by the Owner, in the performance of such Owner's obligations as set forth in the Declaration which is not cured within sixty (60) days.

    2. Examination of Books. The Association shall permit Approved Mortgagees to examine the books and records of the Association during normal business hours, upon reasonable notice to the Association and/or its Manager.


    3. Approval for Amendments to Declaration. The prior written approval of each Approved Mortgagee shall be required for the following: (i) abandonment or termination of the Condominium as a condominium regime, except for abandonment or termination provided by law in case of substantial destruction by fire or other casualty or in the case of taking by condemnation or eminent domain; (ii) any amendment to the Declaration or By-Laws of the Association which would change the percentage interest of Unit Owners in the Common Elements, and which would change the pro rata interest or obligations of any Unit Owner for the purpose of levying common assessments or charges or allocating distribution of hazard insurance proceeds or conde mnation awards; and (iii) amendment to any provision that expressly benefits Approved Mortgagees.


    4. Riebt to Partition. No Unit may be partitioned or subdivided by the Unit Owner thereof without the prior written approval of the holder of the Approved Mortgage on such Unit and the Board of Directors of the Association.


    5. Claims for Unpaid Common Charees. Any Approved Mortgagee who obtains title to a Unit pursuant to the remedies provided in its mortgage, or pursuant to a


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conveyance in lieu of foreclosure, or any purchaser at a foreclosure sale upon enforcement of a its mortgage, shall not be liable for such Unit's unpaid Common Charges which accrued prior to the acquisition of title to such Unit by such party, except for claims for a pro rata re-allocation of such Common Charges to all Units including the mortgaged Unit.


ARTICLE XXVII

EMINENT DOMAIN


If all or any part of the Property is taken or threatened to be taken by eminent domain or by power in the nature of eminent domain (whether permanent or tempo rary), the Association and each Unit Owner shall be entitled to participate in proceedings incident thereto at their respective expense. The Association shall give timely written notice of the existence of such proceedings to all Unit Owners and to all Approved Mortgagees known to the Association to have an interest in any Unit. The expense of participation in such proceedings by the Association shall be borne by the Association. The Association is specifically authorized to obtain and pay for such assistance from attorneys, appraisers, architec ts, engineers, expert witnesses and other persons as the Association in its discretion deems necessary or advisable to aid or advise it in matters relating to such proceedings. All damages or awards for such taking shall be deposited with the Association and such damages or awards shall be applied as provided to defend or resist any such proceeding, to make any settlement with respect hereto, or to convey such property to the condemning authority in lieu of such condemnation proceed ings. With respect to any such taking, all damages and awards shall be determined for such taking as a whole and not for each Unit Owner's interest therein. After the damages or awards for such taking are determined, such damages or awards shall be paid to the account of each Unit Owner and Approved Mortgagee, if any, as their interest may appear in proportion to their percentage ownership interest in the Common Elements to be applied or paid as set forth in Exhibit "G" unless restoration takes place as herein provided. If it deems advisable, the Board may call a meeting of the Unit Owners at which meeting the Unit Owners , by a majority vote, shall decide whether to or not to replace or restore as far as the Common Elements so ta.ken or damaged.


In the event such eminent domain proceeding results in the taking of or damages to one (1) or more, but less than sixty-six and two-thirds percent (66-2/3%) of the total number of Units, then the damages and awards for such taking shall be determined for each Unit and the following shall apply:


  1. The Association shall determine which of the Units damaged by such taking may be made usable for the purposes set forth in the Declaration, taking into account the nature of thi -Condorninium and the reduced size of each Unit so damage.


  2. The Association shall determine whether it is reasonably practical to operate the remaining Units of the Condominium including those damaged Units which may be tenantable as a condominium in the manner provided in this Declaration.


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  3. In the event the Association determines it is not reasonably practical to operate the undamaged Units and the damaged Units which can be made usable, then the Property shall be deemed to be regrouped and merged into a single estate owned jointly in undivided interest by all Unit Owners, as owners in indivision, in the percentage ownership interest previously owned by each Unit Owner.


  4. In the event the Association determines it will be reasonably practical to operate the undamaged Units and the damaged Units which can be made usable then the damages and awards made with respect to each Unit which has been determined to be capable of being made usable shall be applied to repair and to reconstruct such Unit so that it is made usable. If the cost of such work exceeds the amount of the award, the additional funds required shall be assessed against those Units which are usable, and the award made shall be paid as set forth in Exhibit "G" of the Declaration and the remaining portion of such Units, if any, shall become a part of the Common Elements. Upon payment of such award for the account of such Unit Owner as provided herein, such Unit shall no longer be susceptible of independent ownersh ip as a part of the Property and the percentage ownership interest in the Common Elements appurtenant to each remaining Unit which shall continue as a part of the Property shall be equitably adjusted to distribute the ownership of the undivided interest in the Common Elements among the reduced number of Unit Owners.


If the entire Property is taken, or more than sixty-six and two-thirds percent (66- 2/3%) of the Units are taken or damaged by such taking, all damages and awards shall be paid to or for the accounts of the Unit Owners of Units or their Mortgagees; if any, as their interests may appear, as provided herein, in proportion to their ownership interests in the Common Elements; and this condominium regime shall terminate upon such payment. Upon such termination, the Property shall be owned in indivision by all Unit Owners in the same proportions as previously owned by each Unit Owner in the Common Elements.


Any damages or awards provided in the article shall be paid to or for the account of any Unit Owner and Approved Mortgagee, if any, as their interests may appear.


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11IUS DONE, SIGNED, AND PASSED by Declarant in my office in the City of New Orleans, State of Louisiana, on the date hereinabove first written, in multiple counterparts, in the presence of the undersigned competent witnesses, who hereunder sign their names, together with me, Notary, after due reading of the whole.


image

/

BY:

WILLIAM

Its: President

WITNESSES: THE CACTUS CORP.


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