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HomeMy WebLinkAbout2009-043THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON BY-LAW 2009-043 Being a By-law to authorize a contract between the Corporation of the Municipality of Clarington and Community Care Durham, Bowmanville, Ontario, to enter into agreement for the leased space at 26 Beech Avenue, Bowmanville, ON. THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON HEREBY ENACTS AS FOLLOWS: 1. THAT the Mayor and Clerk are hereby authorized to execute, on behalf of the Corporation of the Municipality of Clarington and seal with the Corporation Seal, an agreement between Community Care Durham, Bowmanville, Ontario, and said Corporation; and 2. THAT the agreement attached hereto as Schedule "A" form part of this By-law. By-law read a first and second time this 6w day of April, 2009. By-law read a third time and finally passed this 6`h day of April, 2009. THIS LEASE AND LICENCE is made as of the first day of April, 2009. BETWEEN: THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON (hereinafter called the "Landlord") OF THE FIRST PART -and- COMMUNITY CARE DURHAM a company incorporated under the laws of the Province of Ontario (hereinafter called the "Lessee") OF THE SECOND PART LEASE AND LICENCE AGREEMENT ^ TABLE OF CONTENTS ARTICLE I: DEMISED PREMISES, TERM AND USE 1.1 Demised Premises ............................................. 1.2 Licenced Areas ................................................... 1.3 Term ................................................................... 1.4 Use ..................................................................... 1.5 Nuisance ............................................................. ARTICLE II: RENT AND OTHER CHARGES 2.1 Rent ............:........................................................ .....................................................6 2.2 Rent Past Due ..................................................... .....................................................6 2.3 Other Charges ..................................................... .....................................................7 ARTICLE III: REPAIRS, MAINTENANCE AND ALTERATIONS 3.1 Lessor's Duty to Repair, to Heat and to Provide Utilities ..........................................7 3.2 Prior Approval Required of Lessee's Alteration of Premises ............................. 7 & 8 3.3 Construction Liens ....................................................................................................8 ARTICLE IV: REMOVAL OF LESSEE'S FIXTURES AND EQUIPMENT 4.1 Right to Remove Fixtures, etc ..................................................................................8 ARTICLE V: ACCESS AND ENTRY 5.1 Access to Premises ......................................... 5.2 Entry not Forfeiture .......................................... ARTICLE VI: INSURANCEjAND INDEMNITY 6.1 Lessee's Duky to Insure ................................... 6.2 Terms of Policies ............................................. 6.3 Evidence of Policies ........................................ 6.4 Failure to Provide Insurance ............................ 6.5 Indemnity ......................................................... 6.6 Responsibility for Loss or Damage .................. 6.7 Benefit of Indemnity, etc .................................. 6.8 Dangerous use ................................................ ARTICLE VII: DAMAGE AND DESTRUCTION ....................................................5 ....................................................5 ....................................................5 ............................................. 5 & 6 ....................................................6 .................................... 5 & 9 ...........................................9 7.1 Damage to Demised Premises or Licenced Area ..................................................13 7.2 Insured Dannage to or Destruction of Demised Premises or Licenced Area..........13 7.3 Uninsured Damage to Demised Premises or Licenced Area ........................13 & 14 7.4 Termination of Lease and Licence After Destruction or Damage to Demised Premises .................................................................................................14 7.5 Actions Following Termination ................................................................................14 7.6 Restoration of Demised Premises and Licenced Areas If Lease not Terminated .............................................................................................................14 7.7 Restoration and Insurance Proceeds ............................................................14 8< 15 7.8 Determination of Matters ........................................................................................15 7.9 Limitation of Liability ...............................................................................................15 ARTICLE VIII: ASSIGNMENT, SUB-LEASE AND LICENCE 8.1 Consent Required ..................................................... ARTICLE IX: DEFAULT 9.1 Events of Default ............................................... 9.2 Right of Re-Entry .............................................. 9.3 Legal Expenses to Recover Possession .......... 9.4 Right of Termination ......................................... 9.5 Right to Re-let ................................................... 9.6 Separate Remedies .......................................... ARTICLE X: EXTENSION OR RENEWAL 10.1 .Option to Extend or Renew Lease and Licence .............. ARTICLE XI: GENERAL PROVISIONS ..........:..................15 .......................17 11.1 Definitions ................................................................................................... ...17 & 18 11.2 Schedules Form Part of Lease and Licence ............................................... ............18 11.3 Quiet Enjoyment ......................................................................................... ...18 & 19 11.4 Covenants .................................................................................................. ........... 19 11.5 No Partnership or Agency .......................................................................... ........... 11.6 PST and GST ............................................................................................. 19 ........... 11.7 Overholding No Tracit Renewal .................................................................: ........... 19 11.8 Waiver ..............................................................................:......................... .. 19 & 20 11.9 Distress ....................................................................................................... ...........20 11.10 Costs .......................................................................................................... ........... 20 11.11 Set-Off and j4ccord and Satisfaction ......................................................... ............ 20 11.12 Authority of Lessor, etc .............................................................................. ............ 20 11.13 Rules Regarding Operation of Demised Premises and Licensed Areas ... ............ 20 11.14 Demised Premises and Areas to be Smoke-Free ..................................... ............20 11.15 Use of Additional Areas by the Lessee ...................................................... .... 20 & 21 11.16 Lease Subject to Lease .......................:..................................................... .............21 11.17 Notices ....................................................................................................... ......:.....21 11.18 Force Majeure ..:........................................................................................ ............ 21 11.19 Time of Essence ........................................................................................ ............ 21 11.20 Enforceability ............................................................................................. ............ 11.21 Enurement .:............................................................................................... 22 ............ 11.22 Governing Law .......................................................................................... ............ 22 Schedule "A" -Floor Plans April 27, 2009 THIS LEASE AND LICENCE is made as of the first day of April, 2009. BETWEEN: THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON (hereinafter called the "Landlord") OF THE FIRST PART -and- COMMUNITY CARE DURHAM a company incorporated under the laws of the Province of Ontario (hereinafter called the "Lessee") OF THE SECOND PART NOW THEREFORE THIS LEASE AND LICENCE WITNESSES THAT in consideration of the rents, covenants and agreements hereinafter referred to and contained, the leases to the Lessee, subject to the rights of access and entry set out below and the Lessee leases from the Lessor, the Demised Premises on the terms and conditions set out below. The Lessor also licences the Lessee to use the Licenced Areas on the terms and conditions set out below. Lease and Licence Lease and Licence ARTICLE ONE DEMISED PREMISES. TERM AND USE 1.1 Demised Premises The Demised Premises comprise approximately one thousand three hundred and eighty-six (1,386) square feet of office space located on the first floor of the Building which are identified as the Community Care Office Facilities and outlined in blue on the floor plans contained in Schedule "A" hereto, together with anon-exclusive easement which maybe exercised by the Lessee, its employees, licensees, invitees and guests to use the main entrance identified on the floor plans contained in Schedule "A" hereto, and the walkways, driveways and grounds of the Premises for the purpose of ingress to and egress from the aforesaid Community Care Office Facilities and parking motor vehicles in the designated parking area during the hours of 8:00 a.m. and 5:00 p.m. from Monday to Friday of each week of each year or part of a year of this Lease and Licence and any extension or renewal. 1.2 Licenced Areas The Licenced Areas include non-exclusive use of the Board Room on the first floor of the Building which is identified on the floor plans contained in Schedule "A" together with the non-exclusive right to use the entrances, exits, stairs, elevators, corridors and washrooms of the aforesaid Building provided that notice is first given by the Lessee to the Clarington Older Adults Association Administrator of the proposed time of use of the Board Room and it is not otherwise engaged. The Lessee may also use on anon-exclusive basis the lunch room on the first floor of the aforesaid Building provided that (I) the Lessee keeps the lunch room in a clean and tidy condition at its cost on each occasion on which it is used by its employees, and (2) garbage is placed by the Lessee in suitable containers and in locations approved by the Lessor's Administrator for removal from the Premises. 1.3 Term The term of this Lease and Licence shall commence on April 1, 2009 (the "Commencement Date") and shall terminate on March 31st, 2010 provided that either the Lessor or Lessee may terminate the Term of the Lease by giving the other party at least thirty (30) days written notice of terminatQ ending the last day of the month on which such termination is to have affect. 1.4 Use a) Throughout the Term of this Lease and Licence and any extension or renewal thereof, the Lessee shall use, permit or suffer the Community Care Office Facilities to be used only for its purposes. Throughout the Term of this Lease and Licence and any extension or renewal thereof, the Lessee shall use, permit or suffer the Licenced Areas only for the purposes intended by and during the times set out in this Lease and Licence. b) At all times throughout the Term of this Lease and Licence and any extension or renewal thereof, the Lessee shall continuously, actively and diligently carry out, cause, or suffer the use of the Demised Premises and every part thereof in compliance with all applicable laws and the provisions of this Lease and shall not use or occupy or permit or suffer the use or occupancy of the Demised Premises or any part therefore for any other purpose. The Lessee at its cost shall obtain all necessary permits or licences required by applicable law in respect of any use which the Lessee or any person who claims under the Lessee, may make or permit or suffer any other person to make of any part of the Demised Premises. PAGE 5 Lease and Licence Lease and Licence c) The Lessee acknowledges and agrees that the Municipality of Clarington shall not be responsible for any of the Lessee's costs, liabilities, or responsibilities in respect of employment contracts made by the Lessee with full-time or part-time employees of the Lessee or volunteers of the Lessee. None of the full-time or part-time employees of the Lessee shall be considered or deemed to be employees of the Municipality of Clarington for any purpose, and none of them shall be or be considered to be required or to be eligible to participate in the Ontario Municipal Employees Retirement System. Prior to hiring employees, the Lessee shall bring the content of this paragraph 1.4 (c) to their attention. 1.5 Nuisance The Lessee shall not commit, permit or suffer (i) any waste, damage or injury to the Demised Premises or any area which is part of the Licensed Areas, including, without limitation, .the improvements, installations, fixtures and equipment located thereon or therein; (ii) any nuisance in or on the Demised Premises or in or on any area which is part of the Licensed Areas; (iii) any overloading of any HVAC system, any utility, electrical system, plumbing system, mechanical equipment, or other facilities or systems within or serving the Demised Premises or any area which is part of the Licensed Areas; and (iv) any waste, damage or injury of the Premises or any part thereof or of any other systems serving the Premises or any part thereof. The Lessor in its sole discretion may determine whether the Lessee is in breach of any provision of this Section 1.5. ARTICLE TWO RENT AND OTHER CHARGES 2.1 Rent (1) The Rent reserved by the Lessor by this Lease and Licence is Sixteen Thousand Eight Hundred and Fifty'. Three Dollars and Seventy Six Cents ($16,853.76) per annum payable in equal monthly installments of One Thousand Four Hundred and Forty Eight Cents ($1,404.48) Dollars each in advance with the first installment being due and payable on the Commencement Date. The Basic Rent includes all expenses for heat, electricity, water and snow removal which are the responsibility of the Lessor. (2) Notwithstanding paragraph 2.1(1) the Lessee shall pay to the Lessor during the Term of this Lease and Licence forthwith after being given a written notice of demand, any increase in charges for electricity and water above the charges therefore that are made by the responsible provide of the service after the date as of which the Lease and Licence is made. 2.2 .Rent Past Due Except as otherwise provided in this Lease and Licence, if the Lessee pays the Rent reserved hereby, fully performs all of its covenants and duties under this Lease and no Event of Default has occurred, the Lessee shall be entitled to peaceful and quiet enjoyment of the Demised Premise for the Term without interruption or interference by the Lessor or any person claiming through the Lessor. PAGE 6 Lease and Licence Lease and Licence 2.3 Other Charges (a) In each and every year during the Term of this Lease and Licence and any renewal or extension thereof, the Lessee shall be responsible for and pay and discharge promptly when due all charges for telephone used upon or in respect of the Demised Premises or for fittings, machines, apparatus, meters or other things leased in respect thereof:. Without limiting the foregoing in any way, during th.e Term, the Lessee shall also be responsible for and shall pay promptly as,Additional Rent the aggregate of all costs of every kind incurred by or on behalf of the Lessor for which the Lessee is responsible under the provisions of this Lease and Licence with respect to insurance relating to the Demised Premises required to be obtained by the Lessee, forthwith after the Lessee is given written notice by the Lessor's Administrator requiring it to do so. (b) The Lessee shall provide the Lessor within ten (10) days after receipt of same any tax bills, assessments, utility charges and other notices regarding the foregoing. ARTICLE THREE REPAIRS. MAINTENANCE AND ALTERATIONS 3.7 Lessor's Dutv to Repair to Heat and to Provide Utilities The Lessor at all times throughout the Term of this Lease and Licence and any extension or renewal thereof shall repair, keep in repair and maintain the Demised Premises and the Licenced Areas. The Lessor shall also repair and keep in repair and maintain those portions of the Premises which may be used by the Lessee as provided in this Lease including all exterior areas of the Premises. The Lessor at its cost shall heat the Demised Premises between October 15~" and April Ist of each year and provide electricity and water services to the Demised Premises and the areas which are part of the Licenced Areas according to their functions and shall remove snow from the walkways, driveways and parking area on the Premises. 3.2 Prior Approval Required of Lessee's Alteration of Premises (a) No alteration shall be made to any part of the Demised Premises or the Premises by the Lessee without the written approval of the Lessor's Administrator being first obtained. The Lessee shall submit to the Lessor details of the proposed alterations, including, without limitation, plans, drawings and specifications prepared by qualified architects or engineers in conformity with the Lessor's then current building standards. All such alterations shall be performed (i) at the sole cost of the Lessee, (ii) by contractors and workmen designated, provided or approved by the Lessor, (iii) in a good and workmanlike manner, (iv) in accordance with plans, drawings and specifications approved in writing by the Lessor and, where required, by other. authorities having jurisdiction, (v) in satisfaction of all applicable legal and insurance requirements, (vi) subject to reasonable regulation, supervision, control and inspection by the Lessor, and (vii) only after there is provided to the Lessor such indemnification against construction liens and evidence of such additional Lessee's insurance as the Lessor may reasonably require. (b) Whether or not the Lessor gives its approval to a proposed alteration, the Lessee shall pay to the Lessor, do demand, all of the Lessor's reasonable costs (including; without limitation, fees and disbursements of architects, engineers and designers) incurred in reviewing, consulting in respect of, approving, inspecting and supervising any and all such alterations. The Lessor shall have the right to require the Lessee to make a payment to the Lessor in respect of such costs as a precondition to the Lessor's granting any necessary approval thereof. Such reasonable costs shall be deemed to include, without limitation, all amounts paid or payable by the Lessor to third parties, and all reasonable charges of the Lessor for the cost of providing its own personnel: PAGE 7 Lease and Licence Lease and Licence (c) The Lessor's approval of any alterations or plans, drawings or specifications with respect thereto shall not constitute a waiver by the Lessor of the Lessee's obligations herein to comply with all laws and all requirements of all authorities with respect to such alterations, nor shall the Lessor's approval constitute an acknowledgment or agreement by the Lessor that such laws and requirements have been complied with. The Licenced Areas include non-exclusive use of the Board Room on the first floor of the Building which is identified on the floor plans contained in Schedule "A" together with the non-exclusive right to use the entrances, exits, stairs, elevators, corridors and washrooms of the aforesaid Building provided that notice is first given by the Sub- lessee to the Lessor's Administrator of the proposed time of use of the Board Room and it is not otherwise engaged. The Lessee may also use on an on-exclusive basis the lunch room on the first floor of the aforesaid Building provided that (1) the Lessee keeps the lunch room in a clean and tidy condition at its cost on each occasion on which it is used by its employees, and (2) garbage is placed by the Lessee in suitable containers and in locations approved by the Lessor's Administrator for removal from the Premises. 3.3 Construction Liens The Lessee shall promptly pay for all materials and services supplied and work done on its behalf in respect of the Demised Premises or the Premises so as to ensure that no claim for lien under the Construction Lien Act is registered against any portion of the Demised Premises, an area which is part of the Licenced Areas, or the lands which comprise part of the Premises. If a claim of a lien is registered on title, the Lessee shall discharge it at its expense within ten (10) days thereafter, failing which the Lessor, at its option, may discharge the lien by paying the amount claimed to be due into Court or directly to the lien claimant. All expenses of the Lessor including, without limitation, legal fees (on a solicitor and his client basis) shall be paid by the Lessee to the Lessor forthwith after the Lessor's Administrator gives the Lessee written notice requiring it to do so as Additional Rent. ARTICLE FOUR REMOVAL OF TENANT'S FIXTURES AND EQUIPMENT 4.1 Rislht to Remove fixtures, etc. During the Term or on its expiration, when it is not in default of performance of any of its covenants under this Lease and Licence, the Lessee at its cost may remove Lessee's fixtures, equipment and personal property from the Demised Premises and from any area that is part of the Licenced Areas, provided that the Lessee at its cost shall restore Demised Premises or area by making good any damage that has occurred either by the installation of Lessee's fixtures, equipment or personal property or by the removal of any of them from any part of the Demised Premises or area. If the Lessee does not remove its fixtures, equipment and personal property from the Demised Premises or area that is part of the Licenced Areas at the expiry of the Term, they shall become the absolute property of the Lessor without prior notice being given to the Lessee or compensation therefore being paid by the Lessor to the Lessee, and the Lessor shall be free to use or to dispose of the same and to appropriate the proceeds of disposal to the Lessor's own use absolutely. The Lessor's rights and the Lessee's duties under this Section 4.1 shall survive the expiry or earlier termination of the Term and any extension or renewal thereof. ARTICLE FIVE ACCESS AND ENTRY 5.1 Access to Demised Premises (a) Without limiting any other right which the Lessor may have pursuant to this Lease and Licence or at law, the Lessor shall have the right, but not the obligation, following reasonable written notice to the Lessee (except in the case of an emergency or PAGE 8 Lease and Licence Lease and Licence apprehended emergency where no such notice shall be required), to enter the Demised Premises at any time and for any of the following purposes: (i) to examine the Demised Premises or to perform any maintenance, repairs, replacements, alterations or improvements to the Demised Premises or any part thereof as may be permitted or required by this lease, or to perform any maintenance, repairs, replacements, alterations or improvements to the Building, or any part thereof or to the HVAC System or to any mechanical, electrical or plumbing equipment or systems, or any part thereof, within or serving the Demised Premises or any part thereof; (ii) to preserve and protect the Demised Premises, or any part thereof in respect of any construction or other work being performed in Demised Premises adjoining or in the vicinity of the Demised Premises, or on any part of the Demised Premises; (iii) for any purposes as determined by the Lessor in cases of emergency; (iv) to read any utility or other similar meter located in the Demised Premises; (v) during the last six (6) months of the Term (or any renewal or extension Term if renewed or extended), but only during normal operating hours, to show the Demised Premises to prospective Lessees, and to permit them to make inspections,:. measurements and plans; (vi) to exercise any of the rights available to the Lessor pursuant to this lease or to perform such work in respect of the Demised Premises, or any part thereof, as the Lessor shall deem necessary. (b) The Lessor shall have the right to take into the Demised Premises all such material and equipment as it magi require in connection with any of the purposes referred to in this Section The Lessor shall exercise its rights under this Section 5.1, to the extent reasonably possible in the circumstances, in such manner and at such times as the Lessor's Administrator shall determine, and to the extent practical in the circumstances, so as to minimize interference with the Lessee's use and enjoyment of the Demised Premises. 5.2 Entrv not Forfeiture Notwithstanding anything.contained in this Lease and Licence, the exercise by the Lessor of any of its rights under this Lease and Licence, including, without limitation, (i) any of its rights set out in Section 5. 1, and (ii) the exercise of any right under this Lease and Licence to enter the Demised Premises and to do anything therein, shall not constitute a breach of any covenant for quiet enjoyment, or a constructive or actual eviction, or a re-entry or forfeiture (except where expressed by the Lessor in writing), nor shall it render the Lessor liable for any injury, loss,. costs or damages whatsoever, howsoever caused, whether direct or indirect, incurred. as a, result thereof by the Lessee, nor shall the Lessee be entitled to any compensation, diminution or abatement of Rent (except as may be otherwise expressly provided in this Lease and Licence). ARTICLE SIX INSURANCE AND INDEMNITY 6.1 Lessee's Dutv to Insure The Lessee shall obtain and maintain throughout the Term of this Lease and Licence and any extension or renewal. thereof: (i) all risk insurance on all property of every description, nature and kind owned by the - Lessee or for which the Lessee is legally liable located within the Demised Premises PAGE 9 Lease and Licence Lease and Licence or within any part of the Licensed Areas in its own name, naming the Lessor as an additional insured, in an amount not less than the full replacement cost thereof without deduction for depreciation; such insurance shall be subject to a replacement cost endorsement; any dispute as to the amount of the replacement cost shall be settled by the Lessor or by a consultant appointed by the Lessor at the Lessee's cost; (ii) general liability and property damage insurance including Lessee's legal liability in the minimum amount of Two Million Dollars ($2,000,000.00), naming the Lessor as an additional insured, and containing across-liability endorsement, and other terms and conditions satisfactory to the Lessor's Administrator acting reasonably. 6.2 Terms of Policies Each policy of insurance referred to in Section 6.1 shall be in form and substance and with insurers reasonably acceptable to the Lessor's Administrator. Each of the insurance policies shall contain (i) an undertaking by the insurers under such policies that no material change adverse to the Lessor or Lessee will be made, and the policy will not be cancelled or terminated, except after npt less than thirty (30) days written notice by registered mail to the Lessor and the Lessee of the intended change, cancellation or termination, and (ii) a clause stating that the Lessee's insurance policy shall be primary insurance and shall not call into contribution and shall not. be excess to any other insurance that may be available to the Lessor. Each of the policies referred to in Section 6.1 shall contain. a waiver, in respect of the interests of the Lessar of any provision in any such insurance policies with respect to any breach or violation of any warranties, representations, deGarations or conditions contained in such policies: 6.3 Evidence of Policies The Lessee shall provide to the Lessor for acceptance prior to the earlier of the Commencement Date and the date it occupies the Demised Premises for any purpose, evidence satisfactory to the Lessor's Administrator of such insurance or, if required by the Lessor's Administrator, evidence in the form of copies of the policies certified to be true copies by an officer of the insurer and signed by the insurer. In addition, upon request by the Lessor or upon the placement, renewal, amendment or extension of all or any part of such insurance, the Lessee shall immediately provide to the Lessor evidence of such insurance in and completed in accordance with the Lessor standard form of certificate of insurance or, if required by the Lessor's Administrator, evidence in the form of copies of the policies certified to be true copies by an officer of the insurer and signed by the insurer. 6.4 Failure to Provide Insurance The cost or premium for each and every such policy shall be paid by the Lessee prior to the due date therefore. If the Lessee fails to take out or maintain such insurance or fails to provide to the Lessor such certified copies of insurance and certificates of insurance as herein required, or if any such insurance is not acceptable to the Lessor's Administrator (and if the Lessee fails td commence to diligently rectify and thereafter proceed to diligently rectify the situation within forty-eight (48) hours after written notice by the Lessor to the Lessee (stating, if the Lessor, from time to time, does not approve of such insurance, the reasons therefore, then the Lessor shall have the right, but not the obligation, to do so, to pay the cost or premium therefore, without prejudice to any other rights or remedies of the Lessor under this lease or at law, and in such event the Lessee shall repay to the Lessor, on demand, the amount so paid as Additional Rent. 6.5 Indemnity Notwithstanding any other provision of this Lease and Licence, the Lessee shall indemnify the Lessor and all of its agents, officers, employees, contractors, consultants, workers and persons for whom the Lessor is in law responsible (collectively in this Section 6.5 and in Section 6.6 called "Lessor's Employees") and shall hold them and each of them harmless from and against any and all liabilities, actions, proceeding, damages, claims, losses PAGE 10 Lease and Licence Lease and Licence (including, without limitation, indirect or consequential damages that may be suffered or sustained by the Lessor or any of the Lessor's Employees and loss of Rent and all other amounts payable by thee. Lessee under this Lease) and expenses (including, without limitation, all legal fees and disbursements) that is not caused by the negligence of the Lessor or any person fq!r whose acts or omissions the Lessor is responsible in law, whatsoever, howsoever arising from or out of this Lease, and without limiting the generality of the foregoing, howsoever caused by, due to, arising from, or to the extent contributed to by any of the following: (i) any breach or default by the Lessee of or under any of the provisions of this Lease; (ii) any lien under the Construction Lien Act, R.S.O. 1990, c.30 as amended from time to time respecting the Demised Premises or an area which is part of the Licenced Areas or the lands included in the Premises; (iii) any act or omission of the Lessee or any other person on or permitted on the Demised Premises, or any use or occupancy of, or any articles in, the Demised Premises or any part thereof, or any use or occupancy of any other part of the Building or the Lands by the Lessee or any of its agents, employees, invitees, licensees, sub-Lessees, assignees, concessionaires, contractors or persons for whom the Lessee is in law responsible (collectively in this Section 6.3 and in Section 6.4 called "Lessee's Employees"); (iv) any act or omission of the Lessee or any of the Lessee's Employees on the Demised Premises or elsewhere in, on or about the Demised Premises or any part thereof; (v) any injury, personal discomfort, illness, death or loss, costs, expenses or damages whatsoever, direct or indirect or consequential, however caused or arising (I) to persons or property of the Lessee or any of the Lessee's employees or any other persons in, on or about the Building or the Premises or any part thereof by or with the invitation, licence or consent of the Lessee and or (II) which is excluded from the Lessor's liability' or responsibility under Section 6.6(b); (vi) any accident or occurrence in, on or at the Demised Premises including, without limitation, any such accident or occurrence causing injury or death to any person or damage to property or any other loss or injury whatsoever provided that the accident or occurrence does not result from the negligence of the Lessor or an act or omission by any person for whom the Lessor is responsible in law; and/or (vii) any damage, destrjuction or need of repair or replacement to any part of, or .otherwise relating to, the Demised Premises or any other part of the Building, or any damages incurred by the. Lessor or by any occupant of the Building or any part thereof, caused by any act or omission of the Lessee or any of the Lessee's Employees, notwithstanding any other provisions of this Lease. If the Lessor, without fault on its part, is made a party to litigation commenced by or against the Lessee, the Lessee Shall indemnify and hold harmless the Lessor from and against all legal and other costs. Thle Lessor, at its option, may participate in, or assume carriage of, any litigation or settlement discussions relating to the foregoing, or any other matter for which the Lessee is required to indemnify the Lessor under this lease. Alternatively, the Lessor may require the Lessee to assume carriage of and responsibility for all or any part of such litigation or discussions. The Lessee shall pay all legal costs incurred or paid by the Lessor in enforcing the provisions of this lease. For greater certainty the Lessee's obligations contained in this Section 6.5 shall survive the expiration or earlier termination of the Term and any extension or renewal thereof. 6.6 Responsibility for Loss or Damage The provisions of this Section 6.6 shall govern notwithstanding any other provision of this - Lease and Licence. PAGE 11 Lease and Licence Lease and Licence (a) Except where the Lessor or a person for whose acts or omissions he is responsible in law is negligent, the Lessor shall not be liable for any death or injury arising from or out of any occurrence whatsoever in, upon, at or relating to the Demised Premises, or the Premises, or damage to property of the Lessee or of others located on the Demised Premises or the Premise, from any cause whatsoever other than the negligence of the Lessor or a person for whoose acts or omissions the Lessor is responsible in law, nor shall the Lessor be responsibl'~ for any loss of or damage to any property of the Lessee, Lessee's Employees; or others from any cause whatsoever, nor shall the Lessor be responsible for any indirect or consequential damages that may be suffered or sustained by the Lessee or any others from any cause whatsoever. (b) Without limiting the generality of the foregoing, the Lessor. shall not be liable or responsible in any way for any death, injury (including, without limitation, personal discomfort or illness) loss, damage or damages of or to persons or property resulting, directly or indirectly, from any of the following, except where it is caused by the Lessor's negligence or the negligence of any person for whose acts or omissions the Lessor is responsible in law: (i) fire, explosion, theft, breakage, falling plaster, falling ceiling tile, falling fixtures, steam, gas, electricity, water, rain, flood, ice, snow or leaks into, in or from any part of the Demised Premises or area which is part of the Licenced Areas or from any pipes (including, without limitation, water, steam, sprinkler and drainage pipes), sprinklers, appliances, drainage or plumbing works, roof, windows or exterior walls or subsurface of any floor or ceiling of the Demised Premises or any area which is part of the Licenced Areas, or from the street or any other source or place whatsoever, or by dampness, or by the existence, discharge, .spillage or leakage of hazardous or toxic substances, or by any other cause whatsoever; (ii) any suspension, non-operation, failure, reduction, interruption or failure to supply or perform, for any reason or for any period of time, of or in any of the services, equipment, facilities, the electrical system, the plumbing system, the HVAC System, utilities or any services within or serving the Demised Premises or any area which is part of the Licenced Areas, Equipment and Equipment; (iii) delays in the performance of any repairs, replacements, maintenance or restoration for which the Lessor is responsible under this Lease and Licence; (iv) incurred by reason of the Lessor or any of the Lessor's Employees entering upon the Demised Premises to undertake any examination thereof or any work or cleaning or performance of other services therein; (v) incurred by reason of the supply or performance of any janitorial, pest extermination or security obligations or services in any part of the Demised Premises; or (vi) by reason of inconvenience, annoyance or injury to business arising from the Lessor, the Lessee or any others making or failing to diligently make, for whatever reason or cause, any repairs, alterations, additions, renovations, irttprovements or restorations in or to any part of the Demised Premises or any area which is part of the Licenced Areas. (c) .The Lessor shall not be liable or responsible in any way for any such death, injury, loss or damage caused 'by other Lessees, occupants or persons on or in the Demised Premises, the Premises, or .any area which is part of the Licenced Areas or by any occupants of any adjacent property thereto. (d) All property of the Lessee or of any of the Lessee's Employees kept or stored on the Demised Premises shall be so kept or stored at the sole risk of the Lessee, and the Lessee releases and agrees to indemnify the Lessor and save it harmless from and against any claims arising out of anyl loss of or damage to such property, including, without limitation, any subrogation claims by the Lessee's or any others' insurers, and the Lessee shall make all claims for loss, damage or destruction of or to any such property against the policies of insurance required to be maintained by the Lessee under this Lease and Licence. 6.T Benefit of Indemnity. etc. Every indemnity, hold harmless provision, release and exclusion of liability herein contained for the benefit of the Lessor and every waiver of subrogation for the benefit of the Lessor contained in any insurance policy maintained by the Lessee shall survive the expiration or earlier termination of the Term and any extension or renewal thereof and shall extend to and benefit the Lessor, its officers, employees and those for whom such persons are responsible in law. Solely for such purpose, and to the extent that the Lessor expressly chooses to enforce the benefit of this Section for any or all of such persons, it is agreed that the Lessor is the agent. or trustee for such persons. No such indemnity, hold harmless PAGE 12 Lease and Licence Lease and Licence provision, release or exclusion of liability or waiver of subrogation for the benefit of the Lessor shall be deemed to impose or imply any obligation, responsibility or liability whatsoever on the Lessor, including, without limitation, any obligation to perform or do any act or thing, except to the extent any such obligation, responsibility or liability of the Lessor is expressly provided for udder this Lease. 6.8 Dangerous Use The Lessee shall not do, omit or permit anything which will increase the cost of the Lessor's insurance or render any insurance on or relating to the Premises subject to cancellation. The Lessee shall pay to the Lessor forthwith after written notice is given of the Lessor's demand for payment, the amount of any increase in the cost of insurance caused by anything so done, omitted or permitted. ARTICLE SEVEN DAMAGE AND DESTRUCTION 7.1 Damaae to Demised Premises or Licenced Area If the Demised Premises or the Licenced Areas or any part thereof is damaged or destroyed, in whole or in part, by fire or any other occurrence, then (i) this Lease and Licence shall nonetheless continue in full force and effect, (ii) there shall be no abatement of any Rent except to the extent expressly provided in this Article, (iii) the following provisions of this Article shall apply and (iv) notwithstanding any receipt by the Lessor of any insurance proceeds, and notwithstanding any provision of this Lease and Licence or obligation or requirement at law, in equity or by statute to the contrary, the obligations of the Lessor to repair or to provide services or utilities, if any, or to perform "Restoration" (as hereafter defined) under this Lease and Licence shall be subject to the provisions of this Article, and shall be limited to the extent to which the Lessor is required to be insured under this Lease and Licence or is otherwise insured. 7.2 Insured Damage to or Destruction of Demised Premises or Licenced Area If damage to or destruction of the Demised Premises or any area which is part of the Licenced Areas is caused by an occurrence against which, and to not more than the extent that the Lessor is otherwise insured (the "Insured Damage"), and if (i) in the "Architect's" (as hereafter defined) opinion, such Insured Damage is such as to render the whole or any part of the Premises unusable or unsafe for the purpose of the Lessee's use and occupancy and the Restoration of the Demised Premises is not capable of being completed with reasonable diligence within one hundred and eighty (180) days following such occurrence, or (ii) any authority, requires that the Demised Premises be demolished or substantially demolished prior to any Restoration, then the Lessor may elect to terminate this Lease and Licence by giving written notice to the Lessee within sixty (60) days after such occurrence. If the Lessor does not so elect to terminate this Lease and Licence, the Lessor shall diligently perform the Restoration of the Demised Premises to the extent of its obligations pursuant to Section 7.6. 7.3 Uninsured Damaae to Demised Premises or Licenced Area If there is damage to or destruction of the Demised Premises or any area which is part of the Licenced Areas, and, in the Architect's opinion, (i) such damage or destruction is caused by an occurrence against which the Lessor is not insured or required to insure or the cost of Restoration of which would be in excess of the extent to which the Lessor is required to insure pursuant hereto or is otherwise insured or (ii) the Restoration of the Demised Premises is not capable of being completed within sixty (60) days following the occurrence of such damage or destruction and such damage or destruction occurs within two (2) years prior to the expiry of the Term of this Lease and Licence or any extension or renewal thereof and either there are no remaining rights in any party hereto to extend or renew this Lease and Licence or any party having the right to extend or renew this Lease PAGE 13 Lease and Licence Lease and Licence and Licence fails to do so within fifteen (15) days after such occurrence, then the Lessor may elect to terminate this Lease and Licence by giving written notice to the Lessee within thirty (30) days after such occurrence. If the Lessor does not so elect to terminate this Lease and Licence, the Lessor shall diligently perform the Restoration of the Demised Premises to the extent of its obligations pursuant to Section 7.6. 7.4 Termination of Lease and Licence After Destruction or Damage to Demised Premises If (i) in the Architect's opinion, Restoration of any portion of the Demised Premises or any area which is part of the Licenced Areas which affects access or services essential to any of them is not capable of being completed with reasonable diligence within one hundred and eighty (180) days following the occurrence of damage or destruction to such portions or (ii) any authority requires that the Demised Premises or any area which is part of the Licenced Areas be demolished or substantially demolished prior to any Restoration following damage or destruction to the Demised Premises or any area which is part of the Licenced Areas or any part thereof, in any succh case whether such damage or destruction is a director in direct result of any occurrence cff cause whatsoever, whether or not such occurrence or cause is insured, and whether or not there is any damage to or destruction of the Demised Premises or any area which is part of the Licenced Areas then the Lessor may elect to terminate this Lease and Licence by giving written notice to the Lessee within sixty (60) days after such cause or occurrence. If the Lessor does not so elect to terminate this Lease and Licence, subject to Sections 7.2 and 7.3, the Lessor shall diligently perform the Restoration of the Demised Premises and area which is part of the Licenced Areas to the extent of its obligations pursuant to Suction 7.6. 7.5 Actions Following Termination If the Lessor elects to terminate this Lease and Licence under this Article by giving written notice to the Lessee, then, notwithstanding the receipt by the Lessor of any insurance proceeds, (i) this Lease and Licence shall terminate on the date that such notice is given, (ii) the Lessee shall immediately vacate and surrender possession of the Demised Premises and (iii) all Rent accrued to such termination date shall be apportioned and promptly paid without any right of the Lessee to any abatement, deduction, counterclaim, set-off, compensation or reduction whatsoever 7.6 Restoration of Demised Premises and Licenced Areas If lease Not Terminated If this Lease and Licenc$ is not terminated as provided in this Article, the Lessor, to the extent of the insurance proceeds which the Lessor receives or would have received if it had maintained such insurance as is required to be maintained by the Lessor hereunder, shall proceed to perform such Restoration of the Demised Premises and any area which is part of the Licenced Areas limited to the extent of its express obligations under this Lease and Licence. The obligation of the Lessor with respect to Restoration following any damage or destruction under this Article shall be performed in accordance with all applicable obligations contained herein with reasonable diligence. 7.7 Restoration and Insurance Proceeds (a) If there is damage or destruction to the Demised Premises, to any area which is part of the Licenced Areas, and if this Lease and Licence is not terminated pursuant to this Article, the Lessor, in performing the restoration of the same, or any part thereof, as required hereby, shall not be obliged to perform such Restoration in accordance with the plans, drawings or specfications for the Building as defined in the Lease, or any part thereof, as they existed prior to such damage or destruction, but the Less or may perform such Restoration in accordance with any plans, drawings and specifications chosen by the Municipality of Clarington under the Lease in its sole discretion. Without limiting the generality of the foregoing, the Lessee agrees that the Lessor shall be entitled to demolish and rebuild the Building, or any part thereof. PAGE 14 Lease and Licence Lease and Licence (b) The proceeds of insurance, which is required to be maintained by the Lessee and which insurance is required to name the Lessor as an additional insured shall be and are hereby assigned and made payable to the Lessor. If the Lessee receives any such insurance proceeds, the Lessee shall receive and hold such proceeds in trust for the Lessor and shall promptly deliver, them to the Lessor. If such proceeds shall have been paid to the Lessor: (A) if this Lease find Licence has not been terminated pursuant to this Article 7, any surplus remaining after the costs of completion of the Restoration of the Building has been paid, shall be paid to the Lessee to the extent that such surplus does not exceed the value of any Lessee's fixtures or personal property on the Premises and to the extent that such surplus is not required to discharge any debt owed by the Lessee to the Lessor or to remedy any default of the Lessee under this Lease and Licence; .and (B) if this Lease and Licence has been terminated pursuant to this Article 7 such proceeds shall be paid to the Lessee to the extent that they do not exceed the value of any Lessee's fixtures or personal property on the Premises and such proceeds are not required to discharge any debt owed by the Lessee to Lessor or to remedy any default of the Lessee under this Lease and Licence. 7.8 Determination of Matters For the purposes of this Article, the date of any damage or destruction, the determination of and extent to which any portion of the Demised Premises or area which is part of the Licenced Areas is damaged, destroyed, rendered unsafe or are not capable of being used, the times within which Restoration may be made and the date that it is completed or substantially completed shall be determined by the Architect in his sole discretion, such determination to be final and binding on the parties hereto. 7.9 Limitation of Liability Notwithstanding any othef provision of this Lease and Licence, the Lessor shall not be liable for any damages, direct, indirect or consequential, of any nature whatsoever, (including, without limitation, loss of business income or other economic loss to the Lessee), of the Lessee or its employees, customers, suppliers, sub-Lessees, licensees or other persons dealing directly or indirectly with the Lessee or for whom the Lessee is in law responsible arising out of the failure for any cause whatsoever of the Lessor or others to pertorm or complete Restoration, or any part thereof, within any period of time following the occurrence of damage or destruction: contemplated by this Article, and the Lessee shall. indemnify and save harmless the Lessor from and against all such damages. ARTICLE EIGHT ASSIGNMENT. LEASE AND LICENCE 8.1 Consent Required The Lessee shall not assign this Lease and Licence, or sub-let, or licence any person to use the whole or any portion of the Demised Premises or any area which is part of the Licenced Areas without ~irst obtaining the consent of the Lessor, which consent may be unreasonably withheld. ARTICLE NINE DEFAULT 9.1 Events of Default (a) The occurrence of any of the following events ("Events of Default") shall be deemed a default ("Default') under this Lease and Licence if and whenever: (i) the Lessee fails to pay any Rent promptly when due, provided that the Lessor first gives the Lessee thirty (30) days written notice of any such failure and the default is not remedied on or before the end of such period; PAGE 15 Lease and Licence Lease and Licence (ii) the Lessee fails to observe or perform any other term, covenant, condition, or obligation under this Lease and Licence that is capable of remedy, other than a default in payment of Rent, and such default remains unremedied after thirty (30) days following written notice given by the Lessor to the Lessee specifying such default and requiring the Lessee to remedy the same, provided that if the Lessee has taken substantive steps to remedy the default within such thirty (30) day period and is proceeding in good faith to complete remedying the default as quickly as is reasonably practicable, such period shall be deemed to expire one (I) day after the default has been remedied; (iii) the Lessee fails to observe and perform any other term, covenant, condition or obligation under this Lease and Licence that is not capable of remedy; (iv) the Lessee makes an assignment for the benefit of its creditors generally, or if the Lessee is declared bankrupt or insolvent, or if a petition in bankruptcy is filed against the Lessee, or if the Lessee files an assignment in bankruptcy or takes or attempts to take the advantage of any legislation for relief of bankrupt or insolvent debtors, or if a receiver or a receiver and manager is appointed for all or a portion of the Lessee's property, or if any steps are taken or any action or proceedings are instituted by the Lessee or by any other party including, without limitation, any court or governmental body of competent jurisdiction for the dissolution: winding-up, discharged or abandoned; and (v) the Demised Premises become and remain vacant for a period of fourteen (14) consecutive days. 9.2 Right of Re-Entry Without derogating from the provisions of this Lease and Licence, upon a Default occurring, at the option of the Lessor, the Lessor, in addition to any other remedy or right it may have, and without notice or any form of legal process, may forthwith re-enter upon and take possession of the Demised Premises without thereby terminating this Lease and Licence and remove and sell the Lessee's goods, chattels, equipment and Lessee's fixtures there from, any rule of law or equity to the contrary notwithstanding. The Lessor may seize and sell such. goods, chattels, equipment and Lessee's fixtures of the Lessee as are in the Demised Premises and may apply the proceeds thereof to all rent and other payments to which the Lessor is then entitled under this Lease and Licence, Any such sale may be effected in the discretion',of the Lessor by public auction or otherwise, and either in bulk or by individual item, or partly by one means and partly by another, all as the Lessor in its sole discretion may decide. 9.3 Leaal Exaenses to Recover Possession If legal action is brought for recovery of possession of the Demised Premises, for the recovery of Rent, or any other amount due under this Lease and Licence, or because of the breach of any other terrtis, covenants or conditions herein contained on the part of the Lessee to be kept or performed, and a breach is established, the Lessee shall pay to the Lessor all reasonable expenses incurred therefore, including a solicitor's fee (on a solicitor and his client basis), unless a Court shall otherwise award. 9.4 Right of Termination In addition to all rights and remedies of the Lessor available to it by any provisions of this Lease and Licence or given by law to the Lessor, the Lessee agrees that upon a Default occurring, the Lessor shall have the right to terminate this Lease and Licence by giving notice in writing to the Lessee. Upon such notice being given, this Lease and Licence shall terminate immediately without the necessity of any legal proceeding whatsoever. The Lessee shall thereupon within three (3) days after the notice is given quit and surrender the Demised Premises and the areas which are part of the Licensed Areas to the Lessor, and the Lessor, its agents, contractors and employees shall have the right to enter the Demised PAGE 16 Lease and Licence Lease and Licence Premises and dispossess the Lessee and remove any persons or property therefrom without the necessity of legal proceeding whatsoever and without being liable to the Lessee therefore in damages, or otherwise. 9.5 Right to Re-let If the Lessor re-enters pursuant to the provisions of either his Lease and Licence or any applicable law, the Lessor, without limiting its right to recover damages, may either terminate this Lease and Licence, or the Lessor may from time to time without terminating the Lessee's obligations .under this Lease and Licence, make any alterations and repairs considered necessary by the Lessor to facilitate a reletting and relet the Demised Premises or any part thereof as agent of the Lessee for such term or terms and at such rental or rentals and upon such other terms and conditions as the Lessor in its reasonable discretion considers advisable. Upon each reletting, all rent and other moneys received by the Lessor from the reletting will be applied (i) to the payment of indebtedness other than Rent due hereunder from the Lessee to the Lessor (ii) to the payment of costs and expenses of there letting including brokerage fees, legal fees and costs of the alterations and repairs and (iii) to the payment of Rent dwe and unpaid hereunder. The residue, if any, will be held by the Lessor and applied in payment of future rent as it becomes due and payable. If the rent received from the reletting is less than the Rent to be paid by the Lessee, the Lessee shall pay the deficiency to the Lessor. No re-entry by the Lessor shall be construed as an election on its part to terminate this Lease and Licence unless a written notice of that intention is given to the Lessee. Despite a reletting without termination, the Lessor may elect at any time to terminate this Lease and Licence for a previous breach: 9.6 Separate Remedies The Lessor may from time to time resort to any or all of the rights and remedies available to it upon a Default occurring, either by any provision of this Lease and. Licence or by statute or by the general law, each of such rights and remedies being intended to be cumulative and not alternative and each may be exercised generally or in combination. ARTICLE TEN EXTENSION OR RENEWAL 10.1 Option to Extend pr Renew Lease and Licence If the Lessee punctually pays the Rent reserved hereby and all other moneys required to be paid by the Lessee or to any person by this Lease and Licence, fully performs all of its covenants and duties in accordance with the provisions of this Lease and Licence, and no Default has occurred during the Term, not later than two (2) months prior to the date of termination of this Lease and Licence, the Lessee and the Lessor may negotiate an extension or renewal of this Lease and Licence for a further term. ARTICLE ELEVEN GENERAL PROVISIONS 11.1 Definitions (a) "Architect" means the architect from time to time designated or employed by the Municipality under the Lease. (b) "Building" has the meaning assigned to it in Recital "A "of this Lease and Licence. (c) "Commencement Date" has the meaning assigned to it in Section 1.3 of this Lease and Licence. (d) "Demised Premises" has the meaning assigned to it in Recital "E" of this Lease and PAGE 17 Lease and Licence Lease and Licence Licence. (e) "HVAC System" means the heating, ventilation, air-conditioning and other climate control equipment, facilities and systems serving the Building as defined in the Lease or any part thereof, including, without limitation, any and all (i) equipment, improvements and installation, (ii) duct work, diffusers, distribution piping, air handling units and ventilation units and (iii) monitoring, conservation and control systems. (f) "Insured Damage" has the meaning assigned to it in Section 7.2 of this Lease and Licence. (g) "Lease" has the meaning assigned to it in Recital "A" of this Lease and Licence. (h) "Licenced Areas" has the meaning assigned to it in Recital "C" of this Lease and Licence. (i) "Municipality" means The Corporation of the Municipality of Clarington. Q) "Premises" has the'meaning assigned to it in Recital "A" of this Lease and Licence. (k) "Prime Rate "means the variable annual rate of interest (which is calculated daily) established from time to time by the head office in Toronto of any Canadian chartered bank designated by the Landlord, from time to time, as the reference rate it will use to determine rates of interest payable by the most preferred commercial borrowers of such bank on unsecured loans to such borrowers in Canada (as distinct from the rate of interest chargeable for small business loans sometimes referred to as the "prime small business loans interest rate"), current during the applicable period that any amount bears interest under this Lease. (I) "Restoration" means the repairing, replacing, altering, demolishing or rebuilding of all or any part of the Demised Premises and areas included in the Licenced Areas. (m) "Sales Taxes" means any and all goods and services taxes, sales taxes, multi-stage sales taxes, value .added taxes, business transfer taxes, use taxes, consumption taxes or any other taxes imposed by any Authority on the Tenant or on the Landlord or which the Landlord is required to remit to any Authority with respect to Rent paid or payable by the Tenant under this lease, or imposed by any Authority in respect of this lease or the rental or any licensing or use of space under this lease, or in respect of the payments made or payable by theTenant under this lease, or in respect of the goods and services purchased by or provided by the Landlord under this lease, including, without limitation, the provision of administrative services to the Tenant under this lease, whether characterized as goods and services taxes, sales taxes, multi-stage sales taxes, value added taxes, business transfer taxes, use taxes, consumption taxes or otherwise. (n) "Term" has the meaning assigned to it in Section 1.3 of this Lease and Licence. (o) "Lessor's EmployeBs" has the meaning assigned to it by Section 6.5 of the Lease and Licence. 11.2 Schedules Form Part of Lease and Licence Schedule "A" is deemed to be contained in and form part of this Lease and Licence to have the same effect as it would have if their provisions had been set out as covenants in the text of this Lease and Licence. 11.3 Quiet Eniovment Except as otherwise provided in this Lease and Licence, if the Lessee pays the Rent reserved hereby, fully performs all of its covenants and duties under this Lease and Licence and no Event of Default has occurred, the Lessee shall be entitled to peaceful and quiet PAGE 18 Lease and Licence Lease and Licence enjoyment of the Demised Premises for the Term of this Lease and Licence or any extension or renewal thereof, without interruption or interference by the Lessor or any person claiming through the Lessor. 11.4 Covenants Every obligation or duty of the Lessor or the Lessee expressed in this Lease and Licence although not expressed as a covenant, shall be deemed to be a covenant for all purposes. 11.5 No Partnership or Agency The Lessor does not in any way or for any purpose become a partner of the Lessee in the conduct of its business, or othewise, or a joint venturer or a member of a joint enterprise with the Lessee, nor is the relationship of principal and agent created by this Lease and Licence. 11.6 PST and GST Without derogating from any other provision of this Lease and Licence, the Lessee shall be responsible for the payment of Sales Taxes and Goods and Services Tax where applicable in respect of and in addition to the Rent required to be paid by the Lessee to the Lessor under this Lease and Licence, as well as in respect of goods and services sold by the Lessee or any person claiming or acting through, under or with the permission of the Lessee. 11.7 Overholdinp No Tacit Renewal If the Lessee remains in possession of the Premises after the end of the Term with the Consent of the Lessor but!without having executed and delivered a new Lease and Licence, there is no tacit renewal of this Lease and Licence and the Term hereby granted, notwithstanding any statutory provisions or legal presumption to the contrary, and the Lessee shall be deemed to be occupying the Demised Premises as a Lessee from month to month at a monthly Rent payable in advance on the first day of each month equal to the aggregate of the following: (a) one-twelfth (1112 th) of the amount of the Rent payable by the Lessee in the last full twelve (12) month Rental Year of the Term; and otherwise, upon the same terms, covenants and conditions as are set forth in this Lease and Licence, so far as these are applicable to a monthly tenancy. 11.8 Waiver (a) Notwithstanding anything contained in any statute now or hereafter in force limiting or abrogating the right of distress, none of the goods, chattels or Lessee's fixtures on the Premises at any time during the Term shall be exempt from levy by distress for rent in arrears, and if any claim is made for such exemption by the Lessee or if a distress is made bey the Lessor or if any action is brought to test the right of the Lessor to levy upon any such goods as are so exempted, this Lease and Licence may be pleaded as' an estoppel against the Lessee, the Lessee hereby waiving each and every benefit that could or might have accrued to the Lessee under and by virtue of any such statute but for this Lease and Licence. (b) Failure of the Lessor to insist upon the performance of any such covenant or condition of this Lease and Licence or to exercise any right or option contained in this Lease and Licence shall not be construed as a waiver or relinquishment of any such covenant, condition, right or option or of any subsequent breach of the same. No variation' or waiver of any covenant or condition of this Lease and Licence shall be valid unless in writing and signed by duly authorized persons on behalf of the Lessor. PAGE 19 Lease and Licence Lease and Licence (c) All Rent to be paid by the Lessee to the Lessor shall be paid without any deduction, abatement, set-off or compensation whatsoever. 11.9 Distress Notwithstanding any provision of this lease or any provision of applicable legislation, none of the goods and chattels of the Lessee on the Premises at any time during the Term of this Lease and Licence and any extension or renewal thereof shall be exempt from levy by distress for Rent in arrears, and the Lessee waives any such exemption. If the Lessor makes any claim against the goods and chattels of the Lessee by way of distress, this provision may be pleaded as an estoppel against the Lessee in any action brought to test the right of the Lessor to levy such distress. 11.10 Costs The Lessee shall .pay to the Lessor all damages and costs (including, without limitation, all legal fees on a solicitor and its client basis) incurred by the Lessor in enforcing the terms of this Lease, or with respect to any matter or thing which is the obligation of the Lessee under this Lease, or in respect of which the Lessee has agreed to insure or to indemnify the Lessor as Additional Rent. 11.11 Set-Off and Accord, and Satisfaction The Lessee hereby waives the benefit of any statutory or other rights in respect of abatement, reduction, set-off, counterclaim, demand, deduction or compensation in its favour at the time hereof ahd at any future time. No endorsement or statement on any cheque or any letter accompanying any cheque or payment as Rent shall be deemed an acknowledgement by the Lessor of full payment, or an accord and satisfaction, and the Lessor may accept and cash any such cheque or payment without prejudice to the Lessor's right to recover the balance of such Rent or pursue any other right or remedy provided in this lease or at law, in equity or by statute. The Lessor may apply or allocate any sums received from or due to the Lessee against any amounts due and payable under this Lease and Licence in such manner as the Lessor sees fit. 11.12 Authority of Lessor, etc. The Lessee acknowledges and agrees that the Lessor shall not be responsible for any debts incurred by the Lessee or by any person for whose conduct the Lessee is responsible in law. The Lessee shall not represent or suffer or permit anyone to represent to any person that either Lease and Licence -19 the Lessor or the Municipality of Clarington will be responsible for payment of any debt incurred or to be incurred by the Lessee. 11.13 Rules Reparding Oaeration of Demised Premises and Licenced Areas The Municipality's Property Manager from time to time may give the Lessor and the Lessee written notice of rules regarding the operation of the Demised Premises and Licenced Areas which rules shall be deemed to be part of this Lease and Licence. Such rules shall be complied with by the Lessee during the Term of this Lease and Licence and any extension or renewal thereof. 11.14 Demised Premises and Areas to be Smoke-Free The Lessee shall not permit or suffer any person to smoke a tobacco product anywhere in the Building. 11.15 Use of Additional Areas by the Lessee The parties acknowledge and agree that if the Lessee desires to licence any other area, facilities and equipment than that included in the Licenced Areas, any such licence shall be PAGE 20 Lease and Licence Lease and Licence in the discretion of the Lessor and the Lessee shall be required to pay to the Lessor the Lessor's then current charges to any other person who licences the same from the Lessor. 11.16 Lease Subject to Lease Notwithstanding any provision of this Lease and Licence, the parties acknowledge and agree that this Lease and Licence shall terminate on the termination of the Lease. 11.17 Notices If any notice or other document is required to be or may be given by the Lessor or by any official of the Lessor to the lessee or by the Lessee to the Lessor under this Lease and Licence such notice shall be transmitted by telefax, mailed by first class prepaid post or delivered to: The Lessor: The Corporation of the Municipality of Clarington 40 Temperance Street Bowmanville, Ontario LIC 3A6 Attention: Purchasing Manager If by telecopier to: (905) 623-3379 The Lessee: Community Care ~oil..n+ '~ ~' 26 Beech Avenue ~ r~ Bowmanville, Ontario LIC 3A6 Attention: Administrator If by telecopier to: (905) 623-2604 or such other address of which the Lessor or the Lessee has notified the other in writing. Any such notice so mailed or delivered shall be deemed good and sufficient notice under the terms of this Lease and Licence and shall be effective from the date which it is so mailed or delivered. Any notice transmitted by telefax shall be effective from the date that it is telefaxed. 11.18 Force Maieure Notwithstanding anything to the contrary contained in this Lease and Licence, if the Lessee is bona fide delayed or hindered in or prevented from the performance of any term, covenant or act required hereunder by reason of strikes; labour troubles; inability to procure materials or services; power failure; restrictive governmental laws or regulations; riots; insurrection; sabotage; rebellion; war; act of God; or other reason whether of a like nature or not which is not the fault of the Lessee, then performance of such term, covenant or act is excused for the period of the delay. and the Lessee shall be entitled to perform such term, covenant or act within the appropriate time period after the expiration of the period of such delay. However, the provisions of this paragraph do not operate to excuse the Lessee from the prompt payment of Re~ht or any other payments required by this Lease and Licence. 11.19 Time of Essence Time shall be of the essence in all respects of this Lease and Licence and every part hereof. PAGE 21 Lease and Licence Lease and Licence 11.20 Enforceability If any term, covenant or condition of this Lease and Licence or the application thereof to any person or circumstance is to any extent held or rendered invalid, unenforceable or illegal, the remainder of this Luse and Licence or the application of such term, covenant or condition to persons or circumstances other than those with respect to which it is held invalid, unenforceable or illegal is not affected thereby and continues to be applicable and enforceable to the fullest extent permitted by law. 11.21 Enurement This Lease and Licence shall enure to the benefit of and be binding upon the parties hereto, their successors and assigns, provided that no rights shall enure to the benefit of an assignee of this Lease and Licence or a Lessee of any portion of the Premises unless the provisions of Section 8.1 are complied with. 11.22 Governing Law This Lease and Licence shall be interpreted, governed and enforced in accordance with the laws of the Province of Ontario, Canada. IN WITNESS WHEREOI= the Landlord and the Tenant have duly executed and unconditionally delivered this Lease as of the date first above written. THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON By: And: COMMUNITY CARE DURHAM By: ~- Bre Farr, Executive Director And: ~'O' _ ./~"~' Barbara Murcott, irector Finance & Administrations PAGE 22 Lease and Licence Lease and Licence SCHEDULE "A" PAGE 23 ., Lease and Licence Lease and Licence "FLOOR PLANS" PAGE 24 . Lease and Licence " "-• - .. Lease and Licence °FLOOR PLANS" ,,::,- Itt,. 5g ;I___1 ',, 111 it ~ 3 .~ ~~~I~i/ I~~~;s~~ r a - .a------ -- 1 I~_ ~ -_----tea-- ~- -- ~- 1 --~ I- i i. I< i `,a ~ ~ ' K ]B'd • 009LF29LB6 ~ --r~,r, I -.. ~ 3 ~ o ,. ~ ~ } i]i, ~----_ _ ~ t ~ i"I' ~ ~ ~ ~ pJ~nru~ a .;. 3Ltl] ..lINIIYLIO] Ytl 0[:~[~i:ip6-Li-'Jlltl, PAGE 24