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HomeMy WebLinkAbout2000-102 THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON BY-LAW NUMBER 2000-102 being a by-law to authorize the execution by the Municipality of Clarington of an agreement for the transfer of an easement to the Municipality in land necessary to accommodate the planned diversion of Westside Creek WHEREAS at the meeting on June 26, 2000 Council approved the recommendations contained in Report Solic-#3-00; NOW THEREFORE THE COUNCIL OF THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON ENACTS AS FOLLOWS: 1. The Mayor and Clerk are hereby authorized on behalf of the Municipality of Clarington to execute the Agreement between Ontario One Networks Inc., Blue Circle Canada Inc. and the Municipality of Clarington, a copy of which is contained in Schedule 1 attached to and forming part of this By-law. BY-LAW read a first and second time this 26th day of June, 2000. BY-LAW read a third time and finally passed this 26th day of June, 2000. Diane re, ayor Patti L arrie, erk DATE: 06/01/00 TIME: 03:06 PM T0: D.nnis Hef Earon 0 86B-0306 416-365-1876 PAGE: 004-020 ATTACI3MENT N0. 2 EASEMENT AGREEMENT ('n INTERESTIESTATE TRANSFERRED Subject to the following terms and conditions, the right and easement to lay, construct, operate, maintain,inspect,alter,repair,replace,reconstruct and remove certain works and vegetation for the Westside Creek Diversion and other works appurtenant thereto (hereinafter called the "Westside Creek Diversion Works") in, over, along,across, upon and under those parts of the Transferor's land described in Box(5)(which lands are herein called the "Strip").Together with the right to the Transferee,its servants,agents and contractors with all necessary vehicles,supplies and equipment to enter onto the Strip by the Transferor's access routes (as designated from time to time by the Transferor) and pass and repass over the Strip for the purpose of exercising or enjoying any of the rights herein contained. The easement and rights granted herein are for the benefit of each of the following lands: (a) those portions of the Transferee's lands to be used as part of a quarry operation and more particularly described in Schedule "I" attached hereto (the "Blue Circle Lands"); (b) those portions of the Transferee's lands to be used forconservation and parkpurposes and to be conveyed either to the Central Lake Ontario Conservation Authority ("CLOCA") or to The Corporation of the Municipality of Clarington (the "Municipality") and more particularly described in Schedule "II" attached hereto (the "Reconfigured Westside Marsh"): and (c) those portions of the Municipality's lands comprising Cove Road, its extension westerly and the bridge over the Westside Creek ("Cove Road Westside Creek Bridge") and more particularly described in Schedule If attached hereto. The terms and conditions above-mentioned which the Transferee covenants and agrees to observe and to be bound by are as follows: 1. This indenture shall be effective from the * day of June, 2000. 2. (a) Prior to the commencement of construction of the Westside Creek Diversion W orks, the Transferee shall pay to the Transferor for the easement and other rights hereby granted the sum of Two Hundred Seventy-Two Thousand Four Hundred and Forty Dollars ($256,240.00), plus G.S.T., if applicable. The preceding amount includes compensation for the easement rights required for the Westside Creek Diversion which include the easement lands and access as provided for herein. The parties agree that except as provided for herein there shall be no readjustment in the compensation after final completion of the Westside Creek Diversion Works notwithstanding any change in the description required pursuant to Section 2(c) hereof. (b) At the time of execution of this indenture,the Transferee shall pay to the Transferor the sum of Twenty-Two Thousand Five Hundred Dollars f'..fr�($22.500.001 representing payment in full for all of the Transferor's costs incurred to date relating to the negotiations for this indenture, the Construction Agreement (as hereinafter defined), review of all plans, specifications, drawings and other documents respecting this indenture and the Westside Creek Diversion Works but for greater certainty, this shall not constitute payment of any of the Transferor's costs relating to any revision or amendment to this indenture, the Construction Agreement, any new, amended or revised plans, specifications, drawings or other documents respecting this indenture or the Westside Creek Diversion Works,supervision of the construction of the Westside Creek Diversion Works or legal fees and disbursements incurred by the Transferor in connection of the same,whether such legal fees and disbursements were incurred before or after the date of this indenture. June 7,2000 401521.RED JUN 7 ' 00 15 : 07 416-365-1876 PAGE . 004 DATE: 06/07/OD TIME: 03:06 PM TO: Dennis Hs£Eeron P 868-0306 416-365-1816 PAGE: 005-020 - 2 - (c) In the event that any portion of the Westside Creek Diversion Works as constructed is: (i) beyond the boundary of the Strip: and (ii) further than 16 meters from any transmission tower or footing therefore:and (iii) not more than 0.3 meters from the boundaries of the Strip: the Transferor and the Transferee agree to enter into an agreement amending this indenture,with the Transferee to arrange at its cost for an Ontario Land Surveyor to prepare a new description and reference plan for the Westside Creek Diversion Works as constructed and setting out the correct description of the Strip as amended and such amending agreement and revised reference plan shall be registered on title to the Strip. 3. The Transferee shall,except in case of emergency,before commencing any work authorized by this indenture or intended so to be, give to the Transferor forty-eight hours' previous written notice,and in cases of emergency such previous notice as is reasonably possible,and during the time period of any active construction work, repair and maintenance, the Transferor may have its representatives present,whose reasonable time and expense shall be paid(except in the event of emergencies,in which case all of such time and expense incurred in good faith without limitation shall be paid)by the Transferee on presentation of detailed invoices therefor. The cost to the Transferee of any such representative shall be determined on the basis of the actual amounts paid by the Transferor, for such representatives who are not employees of the Transferor,or the Transferor's fully laboured rate(as determined by the Transferor from time to time) for such representatives who are employees of the Transferor (the "Fully Laboured Rate"). For greater certainty,the term"Fully Laboured Rate"asused in this indenture shall mean the amount calculated by the Transferor as its cost of providing the services of its employees,based on the individual employee's salary or wage,benefits and additional costs related thereto (including Employment Insurance, Canada Pension Plan, other pension plan costs,other benefits)and a factor of ten(10%)per cent for attribution of overhead. In addition,the Transferor may charge to the Transferee and the Transferee shall pay the amount reasonably charged to the Transferor(except in the event of emergencies,in which case all of such charges incurred in good faith without limitation shall be paid) for each piece of machinery or equipment used by its representatives in such circumstances,or if such equipment is owned or leased by the Transferor,the Transferor may charge for such machinery or equipment an hourly rate established from time to time (or if the Transferor does not regularly establish such rates, established at that time) by the Transferor on a reasonable basis. The Transferor shall disclose to the Transferee the basis upon which it established such machinery and equipment charge-out rates. 4. The Transferee in connection with laying,constructing,operating, maintaining,inspecting, altering, repairing, replacing, reconstructing or removing the Westside Creek Diversion Works or any part or parts of them shall not interfere in any way with or cause any damage to any Works of the Transferor (as defined herein) now, constructed on the Strip or on adjacent Transferor's lands and during any such activities,the Transferee shall comply with the Occupational Health and Safety Act, R.S.O. 1990, c. 0.1, as amended, and any regulations passed thereunder and,with respect to the original construction of the Westside Creek Diversion Works,with a construction agreement entered into between the Transferor and the Transferee dated the same date as this indenture (which agreement is herein called the "Constvuetion Agreement"). 5. The Transferee shall maintain the Westside Creek Diversion Works in a good and substantial state of repair at all times. 6. The Transferee shall comply with all statutes, by-laws, rules, regulations, orders of, and agreements and undertakings entered into by the Transferee with and to,every governmental June 7,2000 401521.RED JUN 7 ' 00 15 : 07 416-365-1876 PAGE.005 DATE: 06107/00 TIME: 03:06 PM T0: Dsnnis Hsffsron P 868-0306 916-365-1876 PACE: 006-020 - 3 - or other competent authority relating in any manner to the Westside Creek Diversion Works or the exercise of any of the rights or the easement herein granted. 7. The Transferor and anyone acting pursuant to its authority (including licensees, sub-licensees, permitted users and occupants) may at any time enter on the Strip and the Transferor's adjacent lands and inspect all existing and future works of the Transferor whether for Ontario Hydro or for such licensees, sub-licensees and such other users and occupiers as are permitted by Ontario Hydro (the "Works of the Transferor") and/or maintain, repair, rearrange or replace, add to, relocate anywhere on the Strip or the Transferor's adjacent lands and/or remove any of the Works of the Transferor and other of the Transferor's works as defined in the Electricity Act, 1995 (being Schedule "A" of the Energy Competition Act,S.O. 1995, c. 15,as amended or replaced from time to time, and, with respect to electricity transmission facilities only, may install, construct, add, inspect, maintain,repair,alter,rearrange,replace,relocate anywhere on the Strip and the Transferor's adjacent lands and/or remove such new works or equipment as the Transfer or determines necessary or desirable. Notwithstanding the foregoing, in taking or permitting any of the actions contemplated in this Section 7, the Transferor shall not beyond the extent required disrupt, damage or otherwise interfere with the Westside Creek Diversion Works and acknowledges and agrees that to the extent changes to the Westside Creek Diversion Works are required to accommodate changes to the Works of the Transferor, the Transferor shall be entitled to make such changes so long as it gives prior notice thereof to the Transferee and obtains the prior written consent of the Transferee to such changes,such consent not to be unreasonably withheld. The cost of such changes to the Westside Creek Diversion Works required to accommodate changes to electrical transmission facilities only shall be borne as follows: (a) during the first ten(10) years after the granting of the easements herein,100%by the Transferor; (b) during the eleventh(11th)through the twentieth(20th)years after the granting of the easements herein,inclusive,50%by the Transferor and 50%by the Transferee; and (c) thereafter,by the Transferee. In making such changes, the Transferor shall comply with all statutes, by-laws, rules or regulations of, orders of and agreements entered into by the Transferee with and to every governmental or other competent authority relating to the Westside Creek Diversion Works. If any loss or damage results to the Works of the Transferor, whether on the Strip or the Transferor's adjacent lands,by reason of or in consequence of the Transferor exercising its rights in this Section 7, then except where the same was required as a result of any default of the Transferee or defect in the Westside Creek Diversion Works,the Transferor shall be responsible,for such loss and damage and without limiting the generality of the foregoing, the Transferee's indemnity hereinafter set out shall not apply to such loss or damage. S. The Transferee covenants and agrees to indemnify and hold harmless the Transferor from and againstall direct,indirect and/or consequential costs,expenses,losses,damages,actions, causes of action, interest claims,charges,proceedings,claims or demands arising out of its use or occupation of the Strip after the date of this Transfer and Grant of Easement (the "Commencement Date") or any act or omission by its servants,agents,sub-licensees and contractors relating to the Strip and arising after the Commencement Date or arising out of. (a) any spill of pollutants(as defined in theEnviromnental Protection Act,R.S.O. 1990, c. E.19) caused by the actions of the Transferee or by its servants, agents and contractors on all or any part of the Strip or any other lands of the Transferor occurring from and after the Commencement Date of this easement grant and occurring during the term; and ]me 7,7000 401521.RED JUN 7 ' 00 15 :08 416-365- 1876 PAGE .006 DATE: 06/07/00 TIME: 03:06 PM T0: a B6a-0306 416-365-1876 PAGE: 007-020 - 4- (b) any contravention by the Transferee or by its servants,agents and contractors of any provision of any environmental legislation including but not limited to the Environmental Protection Act, R.S.O. 1990, c. E.19 and the Ontario Crater Resources Act, R.S.O. 1990, c. 0.40 to the extent that such contravention occurred from and after the Commencement Date of this easement grant and during the term: including,without limiting the generality of the foregoing, all costs and expenses incurred in restoring or rectifying the Strip or complying with any requests, orders or notices issued pursuant to any applicable legislation and relating to or arising out of the Transferee's use of or easement .rights within the Strip. P Without limiting the foregoing, the Transferee shall indemnify the Transferor and save it harmless from and against any and all direct, indirect and/or consequential costs, loss, claims, actions, damages, liability and expenses in connection with loss of life, personal injury or damage to property arising from any occurrence caused or arising from the occupancy or use by the Transferee of the Strip,including without limitation any occurrence caused or arising during access to or egress from the Strip by the Transferee, its agents, contractors, employees, servants, licensees and sub-licensees from and after the Commencement Date,and any renewals thereof,whatsoever in, upon or at the Strip,or the occupancy or use by the Transferee of the Strip or any part thereof,and without limiting the generality of the foregoing, against any event occasioned wholly or in part by any act or omission of the Transferee, its agents, contractors, employees, servants, licensees or sub-licensees or by anyone permitted to be on the Strip by the Transferee, except to the extent contributed to by the intentional acts of the Transferor and those for whom it is in law responsible. In the event the Transferor shall be made a party to any litigation commenced by or against the Transferee, then the Transferee shall protect and hold the Transferor harmless and shall pay all reasonable costs,expenses and legal fees incurred or paid by the Transferor in connection with such litigation. Without limiting the foregoing, such indemnification shall include all costs, expenses and damages, direct, indirect and consequential,which may arise from any damage to any Works of the Transfer oroccasioned wholly or in part by any act or omission of the Transferee,its agents,contractors,employees, servants, licensees and sub-licensees or by anyone permitted to be on the Strip by the Transferee,except to the extent contributed to by the intentional acts of the Transferor and those for whom it is in law responsible. The Transferee shall at all times have the right, at its option and expense, to dispute and contest in the name of the Transferor any third party claims for which it admits in writing that, in the event such third party claim is held to be valid, the Transferee is liable to indemnify the Transferorunder this Section 8.The Transferor shall fully co-operate with the Transferee and its counsel in any proceedings with respect to any such third party claim and the Transferee shall pay the actual costs reasonably incurred by the Transferor and the Fully Laboured Rates for the employees of the Transferor. In the event the Transferee does not admit that it is liable to indemnify the Transferor under this Section 8 in respect of a third party claim, the Transferor shall ensure that the Transferee is kept advised of the progress of such third party claim and may,but is not obligated to, assert such defence to such third party claim as the Transferor deems reasonable in the circumstances without in any way reducing liability of the Transferee under this indemnification. If the Transferee exercises the option to defend a third party claim, then the following provisions shall apply: (i) the Transferor shall be kept fully informed of all aspects of the conduct of the dispute and shall be provided with copies of all correspondence related thereto: (ii) the appointment of solicitors or other professional advisors shall be subject to the prior approval in writing of the Transferor, such Itme 7,2000 401521.RED JUN 7 ' 00 15 :09 416-365- 1876 PAGE.007 DATE: 06/01/00 TIME: 03:06 PM TO: Dannis Haf Earon P 068-0306 916-365-1816 PAGE: 008-020 - 5 - approval not to be unreasonably withheld or delayed. Without limiting the foregoing,the Transferor may engage its own counsel or other professional advisors,all reasonable expenses of whom are to be for the account of the Transferee, to review the conduct of such dispute and to advise the Transferor with respect to the same; (iii) the Transferee shall not settle or compromise any third party claim or Y agree on any matter in the conduct of the dispute which may affect the liability of the Transferor to any person whatsoever without the prior written approval of the Transferor, such approval not to be unreasonably withheld or delayed; (iv) the Transferee shall be entitled to reasonable access to all relevant books and records of the Transferor that are necessary for the purposes of defending such third party claim: and (v) if the Transferor,acting reasonably,believes that there is liability for such third party claim which may be in excess of any insurances then held by the Transferee or any contractor or licensee of the Transferee for such third party claim (or if the Transferor, acting reasonably, believes that any insurer in respect of the same may deny coverage), then the Transferor may at its option require the Transferee to post such security as may be reasonably required to secure the potential liability forsuch claim and such security may include letters of credit, financial instruments, performance bonds (if applicable), cash, guarantees from parties whose covenant is satisfactory to the Transferor in it unfettered discretion, exercised, however, in good faith, or any combination thereof. 9. The Transferee shall assume liability for and pay as they become due all taxes, rates, and assessments of every kind whatever,or any statutory amounts or grants in lieu thereof,that may be imposed on the Transferor or the Strip by reason of the Westside Creek Diversion Works or by reason of any of the rights or the easement granted herein and shall at all times indemnify the Transferorfrom and against all such taxes,rates,and assessments,or amounts in lieu thereof. 10. Notwithstanding anything herein contained to the contrary the Westside Creek Diversion Works and all other property of the Transferee at any time on the Strip or on adjacent Transferor's land shall be at the sole risk of the Transferee and the Transferor shall not be liable for any loss or damage thereto however occurring and the Transferee releases the Transferor from all claims and demands in respect of any such loss or damage,except to the extent contributed to by the intentional acts of the Transferor and those for whom it is in law responsible. 11. No right,title or interest in or to the Strip or any part or parts of it or any adjacent land of the Transferor shall be acquired by the Transferee except as expressly set out in and subject to all the terms and conditions of this indenture. 12. (a) Within six(6) months of the completion of the end of the monitoring period for the construction of the Westside Creek Diversion Works in accordance with the terms of this indenture and the Construction Agreement, the Transferee shall assign this indenture and the rights and easement conferred by it to the Municipality in the form of Transfer of Easement Agreement annexed as Schedule III and the Transferor shall agree to be a party to such assignment for the purpose of reconfirming the grant of easement and other rights hereunder to the Municipality and for the purpose of consenting to such assignment. The said assignment shall reserve unto Blue Circle Canada Inc. and its successors the rights of access granted to the Transferee herein June 7,2000 401521.RED JUN 7 100 15 :00 416-365- 1876 PAGE .008 DATE: 06/01/00 TIME: 03:06 PM T0: Dennis Msff-T-- A 868-0306 416-365-1876 PAGE: 009-020 - 6 - for the purposes of remedying defaults in the manner provided in section 13 hereof. Blue Circle Canada Inc. is not thereby released from its obligations and liabilities hereunder by reason of the transfer of easement and accordingly Blue Circle Canada Inc. and its successors shall be entitled to the continuing rights as set out in sections 8 and 13 to dispute and contest third party claims for which it may be liable to the Transferor and relating to defaults under this indenture, all as more particularly set out in sections 8 and 13.The Municipality has signed this indenture for the purpose of confirming its agreement to enter into the annexed form of transfer of easement agreement with the Transferor and the Transferee upon the completion of the Westside Creek Diversion Works and expiry of the said monitoring period. (b) Save as set out above,the Transferee shall not transfer,assign orsublet this indenture or any rights or easement conferred by it without the previous written consent of the Transferor.Such consent,in respect only of a transfer,assignment or subletting to the parent,associate,affiliate or subsidiary corporation of the Transferee or a corporation formed by the Transferee and others as a result of a merger, amalgamation or corporate reorganization shall not be unreasonably withheld or delayed;provided as a term of any assignment,any such new transferee shall enter into an agreement with the Transferor agreeing to assume the obligations under this indenture. (c) The Transferor agrees that during the term of this easement, representatives of CLOCA, at CLOCA's cost and risk, shall be permitted access to the Strip and the Westside Creek Diversion Works for the purposes of inspecting and monitoring the Westside Creek Diversion W orks and for the purposes of ensuring that the Transferee carries out its obligations under this indenture with respect to the Westside Creek Diversion Works. 13. If the Transferee should at any time fail to carry out any of the terms and conditions herein contained,the Transferor may give notice to the Transferee and, if Blue Circle Canada Inc. has transferred its rights hereunder,to Blue Circle Canada Inc. or its successors,specifying such failure and if the failure is not remedied within fifteen(15) business days of the notice being mailed or such longer period of time (as may be reasonably required so long as the Transferee has commenced and continuously and diligently proceeds to remedy such default in accordance with a written plan prepared by the Transferee and approved by the Transferor (and, if such plan requires any deviation from the approved design of Westside Creek Diversion Works, prior to the transfer of the Fasement to the Municipality, by the Municipality),such approval not to be unreasonably withheld or delayed,the Transferor may perform in a reasonable manner such obligations for the account of the Transferee;provided that in the event of a perceived emergency, the Transferor shall be entitled to cure such default immediately,and shall provide such previous notice as is reasonably possible to the Transferee prior to so doing, but failure to provide such notice shall not impair the Transferor's right to cure such default in the event of a perceived emergency.In the event that the Transferor remedies the default of the Transferee,the Transferee shall be responsible for reimbursing the Transferor for all costs, expenses and damages reasonably incurred (or in the case the Transferor in good faith believes there to be an emergency, incurred in good faith)by the Transferor arising from such default upon submission of a detailed invoice from the Transferor. If the Transferee either fails to remedy any default within the time period set out in this Section 13 orfails to reimburse the Transferor for all costs,expenses and damages incurred, then the Transferor shall be entitled to terminate this indenture upon fifteen (15) business days' notice to the Transferee; provided that contemporaneously with such notice to the Transferee, the Transferor shall also provide a copy of such termination notice to the Municipality. The Transferor shall upon expiration of the said fifteen (15) business day period, and subject to the following, be entitled to take possession of the Westside Creek Diversion Works, exclude from the Strip any parties claiming an interest under this indenture,and subject to any governmental orders, laws or regulations, restore the Strip to its original condition, to the extent possible, and/or maintain all or some of the Westside Creek Diversion Works for any period of time,all at the expense of the Transferee. The right Save 7,2000 401521.RED JUN 7 ' 00 15 : 10 416-365- 1876 PAGE . 009 DATE: 06/01/00 TIME: 03:06 PM T0: D.nnis Heffsron P 668-0306 416-365-1876 PAGE: 010-020 - '7- of termination provided for herein is subject to the qualification that if, prior to such termination becoming effective, the Transferee has served the Transferor with notice of arbitration with respect to the default alleged by the Transferor as provided for in paragraph 16 hereof, such termination shall not be effective unless and until the arbitrators have, determined that the Transferor is entitled to terminate this indenture.Without limiting any other remedies of the Transferor, the right of termination is further subject to the qualification that if the default is not of a nature which in the Transferor's discretion, exercised in good faith, poses an immediate or immanent danger to the Works of the Transferor or to any person,the right of the Transferor to terminate shall not be excercisable until Blue Circle Canada Inc. or its successors have had a reasonable opportunity to cure the default. 14. The Transferee shall provide at its expense and keep in force, throughout the term of this indenture, insurance of the type commonly called Comprehensive General Liability Insurance which insurance shall be with insurers acceptable to the Transferor, acting reasonably and shall include coverage for personal injury(including death),property damage and consequential damage,all on a per occurrence basis with respect to all operations carried out upon the Strip and the Transferee's use and occupancy of the Strip with limits forany one occurrence or claim not less than$25,000,000.00.Such insurance shall name the Transferor and the Transferee as co-insureds (and may also include the Municipality and CLOCA as co-insureds) and contain a cross-liability clause. Such insurance at the option of the Transferee may form part of the Transferee's blanket insurance policy and shall provide or the insurer shall agree that such policy may not be cancelled or its coverage reduced without thirty(30)days'prior written notice to the Transferor. The Transferee shall keep on deposit with the Transferor a certificate of such portion of the blanket insurance policy and all renewals thereof and all endorsements thereto sufficient to show at all times the current status of such insurance as required under this Section 14 and without limiting the generality of the foregoing, the Transferee shall furnish to the Transferor proof of the renewal or replacement of every such policy at least one month prior to the expiry of such policy. If and whenever the Transferee fails to comply with the foregoing, the Transferor upon at least fifteen(15) days'prior notice or such shorter period as is available prior to the expiry of the insurance policy may effect such insurance for the benefit of the Transferor and Transferee jointly and if the Transferor does so,any premium paid by it shall be recoverable from the Transferee payable on demand. 15. This indenture shall run with the Strip and shall enure to the benefit of and be binding upon the Transferorand the Transferee and,except as otherwise stipulated herein,their respective successors and assigns. 16. Without limiting the right of the Transferor to require the remedy of any perceived default prior to either the commencement or the conclusion of the arbitration process provided for herein, any dispute which arises between the parties hereto concerning any matter in connection with this indenture shall be determined by arbitration by either party giving written notice to the other of such dispute, setting out the issues in dispute with sufficient particularity to permit the other party to adequately respond thereto, and such arbitration shall be pursuant to the Arbitration Act(Ontario),as amended,from time to time or pursuant to any legislation substituted therefor and subject to the following provisions: (a) there shall be three arbitrators appointed in the manner following, that is to say: (i) eitherparty may appoint an arbitrator and on doing so shall forthwith give notice in writing thereof to the other party: (ii) the party in receipt of a notice of the appointment of an arbitrator as aforesaid shall, unless it has already done so, within fifteen (15) business days from the date of receiving the notice appoint an arbitrator and give notice thereof to the other party: June 7,2000 401521.RED JUN 7 ' 00 15 : 11 416-365-1876 PAGE . 010 DATE: 06/01/00 TIME: 03:06 PM TD: Dennis Hsff.r= a 868-0306 416-365-1816 PAGE: 011-020 - 8 - (iii) if either party does not appoint an arbitrator within the time limited under the preceding subparagraph ftji , the other party may apply to aJudge of the Supreme Court of Ontario to appoint an arbitrator on behalf of and at the expense of the party so in default; (iv) the arbitrators appointed by or for the parties hereto shall appoint a third arbitrator and,if they fail to do so within seven(7)days after the last of them was appointed,either party at its own cost and on notice to the other may apply to a Judge of the Supreme Court of Ontario to appoint a third arbitrator; (b) the arbitrator or arbitrators shall have the power to obtain the assistance, advice or opinion of such engineer,architect,surveyor,appraiser,valuer or other expert as he or they may think fit and shall have the discretion to act upon any assistance,advice or opinion so obtained; (c) the arbitrators shall in their discretion determine which and to what extent each party shall bear the costs and expenses of the arbitration: (d) each of the parties will do all acts and things and execute all deed and instruments necessary to give effect to any award made upon any such arbitration; (e) the decision of the arbitrator or arbitrators shall be in writing and shall be binding upon the parties hereto. 17. All payments and communications which may be or are required to be given by any party to the other herein, shall (in the absence of any specific provision to the contrary) be in writing and delivered or sent by prepaid registered mail or telecopier to the parties at their following respective addresses: For Blue Circle: 400 Waverly Road South Bowmanville, ON LIC 3K3 Attention: Plant Manager Facsimile No.: (905) 623-4695 With a copy to the attention of: Blue Circle America Inc. Two Parkway Centre 1100 - 18 8 Parkway Place Marietta,Georgia 30067 U.S.A. Attention: Vice President and General Counsel Facsimile No.: (770) 499-2830 For Hydro: Ontario Hydro Networks Company Inc. 700 University Avenue Toronto, Ontario M58 IX6 Attention: The Secretary June 7,2000 401521.RED JUN 7 ' 00 15 : 11 416-365- 1876 PAGE . 011 DATE: 06/07/OD TIME: 03:06 PM T0: Dennis Hsf Esron P 868-0306 416-365-1876 PAGE: 012-020 - 9 - Facsimile No.: For the Municipality: The Corporation of the Municipality of Clarington 40 Temperance Street Bowmanville, ON L1C 3A6 Attention: Chief Administrative Officer Facsimile No.: (905) 623-0830 and if any such payment o r communication is sent by prepaid registered mail,it sball,subject to the following sentence, be conclusively deemed to have been received on the third business day following the mailing thereof and, if delivered or telecopied, it shall be conclusively deemed to have been received at the time delivery or transmission. Notwithstanding the foregoing provisions with respect mailing,in the event that it may be reasonably anticipated that, due to any strike, lock-out or similar event involving an interruption in postal service,any payment or communication will not be received by the addressee by no later than the third business day following the mailing thereof, then the mailing of any such payment or communication as aforesaid shall not be an effective means of sending the same but rather any payment or communication must then be sent by an alternative means of transportation which it may reasonably be anticipated will cause the payment or communication to be received reasonably expeditiously by the addressee. Any party may from time to time change its address hereinbefore set forth by notice to the other of them in accordance with this Section. For the purposes of this Agreement, a "business a Saturday, Sunday or statutory holiday. day" shall include every day except 18. This Easement shall be interpreted in accordance with the laws of the Province of Ontario and of Canada applicable therein,and the Transferor and Transferee irrevocably attorn to the jurisdiction of the courts of the Province of Ontario. 19. Expect as provided for below,neither the Transferee nor the Transferor shall be regarded as being in default in performance of any obligation hereunder during the period of any unavoidable delay relating thereto. For the purposes of this agreement"unavoidable delay" means any delay for the duration of the delay which is imposed by reason of strikes, lockouts, riots, wars or acts of military authority, acts of public enemies, sabotage, epidemics,washouts,nuclear and radiation activity or fallouts,rebellion or civil commotion, fire or explosion:flood,wind,water,earthquake or other casualty,or an Act of God and any act, omission or event whether of the kind herein enumerated or otherwise not within the control of the Transferee or the Transferor, as the case may be, none of which has been caused by the deliberate default or act or omission by such party and none of which has been avoidable by the exercise of reasonable effort or foresight by such party.Further,none of the foregoing shall apply to any default by the Transferee which affects,damages or threatens to affect or damage any transmission tower or footing therefore or any other electricity transmission facility or equipment of. Each of the Transferee and the Transferor shall notify the other of the commencement,duration and consequence(so far as the same is within the knowledge of the party in question) of any unavoidable delay affecting the performance of any of its obligations hereunder within thirty (30) days of such knowledge. 20. The grantof perpetual easement rights under this indenture is subject to the express condition that it is to be effective only if the provisions of section 50 of the PlanningAct,R.S.O. 1990, c.P.13,as amended,are complied with.Until a consent or exemption under section 50 of the said Planning Act is obtained, the term of this indenture is hereby reduced and amended so that it is effective to but terminates at the expiration of twenty-one (21) years less one day from and including the date hereof. The Transferor agrees that the Transferee may, at the Transferee's expense,apply for a consent or an exemption pursuant to section 50 relating to June 7,2000 401521.RED 416-365- 1876 PAGE . 012 JUN 7 ' 00 15 : 12 DATE: 06/07100 TIME: 03:06 PM T0: Dennis Hefferon P 868-0306 916-365-1876 PAGE: 013-020 _ 10 _ the grant of easement under this indenture at any time prior to the expiration of 21 years less one day from and including the date hereof.The Transferor and the Transferee acknowledge that upon the transfer of this indenture to the Municipality in accordance with section 12(a), such transfer to the Municipality would comply with the provisions of section 50 of the Planning Act as it now exists. SuDe 7,2000 401521.RED 416-365-1876 PAGE .013 JUN 7 ' 00 15 : 12 DATE: 06/07/00 TIME: 03:06 PM T0: Dsnnis Hsfferon P 868-0306 416-365-1876 PAGE: 014-020 - 11 - ------------------ COMPARISON OF HEADERS ------------------ -HEADER 1- - 2 - ------------------ COMPARISON OF FOOTERS------------------ -FOOTER 1- May 25 June 7, 2000 401521.5 401152 June 7,2000 401521.RED JUN 7 ' 00 15 : 12 416-365- 1876 PAGE. 014 GATE: 06/07/00 TIME: 03:06 PH To: Donnie Nsf Eoron P 868-0306 616-365-1876 PAGE: 015-020 _ 12- This redlined draft,generated by CompareRite-The Instant R.edliner,shows the differences between original document : I:\APPS\DOCSOPEN\W&FIROSENMAW\0401S21.05 and revised document: I:\APPS\DOCSOPEN\W&F\ROSENMAW\0401521.06 CompareRite found 4 change(s) in the text CompareRite found 2 change(s) in the notes Deletions appear as struck-through text Additions appear as double underlined text June 7,2000 401521.RED JUN 7 ' 00 15 : 12 416-365-1876 PAGE .015 GATE: 06/07100 TIME: 03:06 PM T0: Dannis Ha£Earon P 868-0306 616-365-1876 PAGE: 016-020 SCHEDULE III TRANSFER OF EASEMENT THISAGREEMENT made as of the_day of ,2000 AMONG: HYDRO ONE NETWORKS INC. (hereinafter called "Hydro") OF THE FIRST PART - and - THE CORPORATION OF THE MUNCIPALITY OF CLARINGTON (hereinafter called the "Municipality") OF THE SECOND PART -and - BLUE CIRCLE CANADA INC. (hereinafter called "Blue Circle") OF THE THIRD PART WHEREAS: A. Hydro has entered into an easement agreement dated the day of 2000 which was registered in the Land Registry Office for the Registry Lan�Tvles Division of Durham(No. 40)on the_day of 2000 as Instrument No. (the"Easement Agreement")in which Hydro transferred to Blue Circle an easement over the Hydro lands as described therein for the purposes of the Westside Creek Diversion. B. As provided in section 12(a)of the Schedule to the Easement Agreement,Blue Circle is transferring the rights and easements conferred by such Easement Agreement to the Municipality with Hydro being a party for the purposes of reconfirming the grant of easements and other rights under the Easement Agreement to the Municipality and for consenting to such assignment to the Municipality. Now THEREFORE THIS AGREEMENT WITNESSES for good and valuable consideration(the receipt and sufficiency of which by each of the parties is hereby acknowledged), the parties agree as follows: 1. The parties hereto acknowledge, confirm and agree that the foregoing recitals are true. 2. Save as expressly provided to the contrary in this Transfer of Easement Agreement, any defined terms used in the Easement Agreement shall have the same meaning for the purposes of this Transfer of Easement Agreement. 3. Blue Circle hereby transfers,sets over and assigns to the Municipality as of and from the date of this Agreement, the Transferee's rights under the Easement Agreement: but reserving to Blue Circle those rights expressly set out in the Easement Agreement. June 7,2000 412663.RED JUN 7 ' 00 15 : 13 416-365-1876 PAGE .016 DATE: 06/07/00 TIME: 03:06 PM T0: Dsnnia Xaf Earon P 860-0306 016-365-1816 PAGE: 017-020 - 2 - 4. Blue Circle confirms to the Municipality that: (a) the payments required to be made by Blue Circle to Hydro pursuant to sections 2(b)and 2(c)of the Easement Agreement have been made in full: and (b) Blue Circle has completed the construction of the Westside Creek Diversion Works in accordance with the Construction Agreement and the terms of the Easement Agreement and that the monitoring period after completion of the construction of the Westside Creek Diversion Works has been completed with any defaults by Blue Circle having been remedied to Hydro's satisfaction. 5. Hydro confirms to the Municipality that: (a) the payments required to be made by Blue Circle to Hydro pursuant to sections 2(b)and 2(c)of the Easement Agreement have been made in full: and (b) Hydro has received the reports from Blue Circle's Consulting Engineer and Geo-Environmental Engineer referred to in section 3 of the Construction Agreement and upon review of such engineering reports, Hydro is not aware of any defaults by Blue Circle under the Construction Agreement or terms of the Easement Agreement and that the monitoring period after completion of the construction of the Westside Creek Diversion Works has been completed with any defaults by Blue Circle of which Hydro is aware having been remedied to Hydro's satisfaction. 6. Subject to sections 5 and 6 71 the Municipality agrees with Blue Circle and Hydro that it will observe and perform the terms and covenants contained in the Easement Agreement after the effective date of this Transfer of Easement Agreement and in consideration thereof,Hydro hereby reconfirms the grant of easement contained in the Easement Agreement in favour of the Municipality and consents to this Transfer of Easement Agreement from Blue Circle to the Municipality;provided that nothing herein shall release Blue Circle of any obligations under the Easement Agreement or limit its liability under the Easement Agreement in accordance with its terms. Blue Circle acknowledges and confirms, in favour of Hydro, that notwithstanding any limitation of liability granted by Hydro to the Municipality, nothing in this Agreement and in particular,without limiting the foregoing,the limitation of liability in favour of the Municipality contained in section 7 below,shall not affect or limit the indemnity obligations of Blue Circle given to Hydro under the Easement Agreement.Hydro confirms that Blue Circle has retained continuing rights underand subject to sections 8, 12 and 13 of the Easement Agreement for access to the easement strip for remedying defaults and to dispute and contest third party claims for which it may be liable to Hydro. 7. Hydro agrees that the liability of the Municipality arid,its successors and CLOCA during such period of time as i4 the Mum ibis the holder of the easement interest pursuant to the Easement Agreement shall be limited to liability in respect of risks insured against under the Comprehensive General Liability Insurance policy referred to in section 14 of the Easement Agreement which is issued to the Municipality with coverage limits in the amount of the greater of $25,000,000.00 and the actual coverage limits contained in the liability and casualty insurance held by the Municipality from time to time in respect of liability for risks other than those inenrred contracted by the Municipality under the Easement Agreement and this Transfer of Easement. June 7,2000 412663.RED JUN 7 100 15 : 13 416-365-1876 PAGE .017 DATE: 06/01/00 TIME: 03:06 PM T0: Dennis Hefferon P 868-0306 416-365-1876 PAGE: 018-020 - 3 - S. Blue Circle and Hydro hereto do in all other respects confirm that the Easement Agreement is in full force and effect, unchanged and unmodified except in accordance with this Transfer of Easement Agreement and so far as Hydro is aware, there is no default by Blue Circle under the Easement Agreement. 9. This Transfer of Easement Agreement shall enure to the benefit of and be binding upon the parties hereto and their respective successors and assigns. 10. This Agreement shall be interpreted in accordance with the laws of the Province of Ontario and of Canada applicable thereto and the parties hereto irrevocably attorn to the jurisdiction of courts of the Province of Ontario. IN WITNESS WHEREOF the parties hereto have duly executed this Agreement as of the day of 12000. HYDRO ONE NETWORKS INC. Per: Name: Title: Per: Name: Title: I/We have authority to bind the Corporation. THE CORPORATION OF THE MUNCIPALITY OF CLARINGTON Per: Name: Title: Per: Name: Title: I/We have authority to bind the Corporation. BLUE CIRCLE CANADA INC. Per: Name: Title: Per: Name: Title: I/We have authority to bind the Corporation. June 7,7000 412663.RED JUN T ' 00 15 : 13 416-365-1876 PAGE .018 GATE: 06/07100 TIME: 03:06 PH T0: Dsnni[ Hsfferon P E6E-0306 416-365-1876 PAGE: 019-020 - 4 - ------------------ COMPARISON OF HEADERS ------------------ -HEADER 1- - 2- ------------------ COMPARISON OF FOOTERS ------------------ -FOOTER I- Niaq 35,June.7 2000 412663:4 412 June 7,7000 412663.RED JUN 7 ' 00 15 : 14 416-365-1876 PAGE .018 DATE: 06/01/00 TIME: 03:06 PM T0: Dennie Hefferon P 868-0306 416-365-1876 PAGE: 020-020 - 5 - This redlined draft,generated by CompareRite-The Instant Redliner,shows the differences between original document : I:\APPS\DOCSOPEN\W&P\ROSENMAW\0412663.04 and revised document: I:\APPS\DOCSOPEN\W&E\ROSENMAW\0412663.05 CompareRite found 6 change(s) in the text CompareRite found 2 change(s) in the notes Deletions appear as struck-through text Additions appear as double underlined text June 7,2000 412663.RED JUN 7 ' 00 15 : 14 416-365- 1876 PAGE . 020