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HomeMy WebLinkAbout2009-160THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON BY-LAW 2009-160 Being a By-law to authorize an agreement between the Corporation of the Municipality of Clarington and On the Edge, Courtice, Ontario, to enter into agreement for the lease space at Garnet B. Rickard Recreation Complex, 2440 King Street West, Bowmanville, Ontario & South Courtice Arena, 1595 Prestonvale Road, Courtice, Ontario to operate afro-shop. THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON HEREBY ENACTS AS FOLLOWS: 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, a contract between, On the Edge, Courtice, Ontario, and said Corporation; and 2. THAT the contract attached hereto as Schedule "A" form part of this By-law. By-law read a first and second time this 23rd day of November, 2009. By-law read a third time and finally passed this 23`d day of November, 2009. THIS LEASE dated as of the 6ch day of .Tanuarv , $~~, zoio in pursuance of the Short Forms of Leases Act. BETWEEN: The Corporation of the Municipality of Clarington (hereinafter called the "Landlord") - and - ON THE EDGE SKATE SHARPENING (hereinafter called the "Tenant") AF THE SECOND PART LEASE AGREEMENT BETWEEN: The Corporation of the Municipality of Clarington (hereinafter called the "Landlord") - and - ON THE EDGE SKATE SHARPENING (hereinafter called the "Tenant") WHEREAS the Landlord has agreed to lease to the Tenant and the Tenant has agreed to lease from the Landlord the assigned space at the Garnet B. Rickard Recreation Complex 2440 Highway No. 2, Bowmanville of the Municipality of Clarington, Regional Municipality of Durham (the "Premises") for the purpose of operating a Pro-Shop. NOW THEREFORE THIS LEASE WITNESSES that in consideration of the rents, covenants and agreements hereinafter reserved and contained on the part of the Landlord and the Tenant, the Landlord leases to the Tenant, and the Tenant leases from the Landlord, the Premises on the following terms and conditions: Term 1.1 The Tenant shall have and hold as tenant for a term of two and a half (2'/2-) years commencing January 1, 2010 and ending March 31, 2012 (hereinafter called the "Term"). There is an option to extend the term of the lease for a five year period at which point the rent shall be increased as per your proposal at a rate of $12.00 per month effective September 15~ for each succeeding year. 1.2 Use (a) Throughout the Term of this Lease and any extension or renewal thereof, the Tenant shall use, permit or suffer the On The Edge Facilities to be used only for the purpose of a licensed pro-shop for the purpose of this Lease. Throughout the Term of this Lease and any extension or renewal thereof, the Tenant shall use, permit or suffer the Leased Areas, Facilities and Equipment only for the purposes intended by and during the times set out in this Lease. (b) At all times throughout the Term of this Lease and any extension or renewal thereof, the Tenant 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 Tenant at its cost shall obtain all necessary permits or licences required by applicable law in respect of any use which the Tenant or any person who claims under the Tenant, may make or permit or suffer any other person to make of any part of the Demised Premises. (c) The Tenant acknowledge and agrees that the Landlord shall not be responsible for any of the Tenant's costs, liabilities, or responsibilities in respect of employment contracts made by the Tenant with full-time and/or part-time employees of the Tenant or volunteers of the Tenant. None of the full-time or part-time employees of the Tenant shall be considered or deemed to be employees of the Municipality for any purpose, and none of them shall be considered to be required or to be eligible to participate in the Ontario Municipal Employees Retirement System. Prior to hiring employees, the Tenant shall bring the content of this paragraph 1.2 (c) to their attention. PAGE 2 2. Extension or Renewal of Lease If the Tenant punctually pays the Rent reserved hereby and all other moneys required to be paid by the Tenant or to any person by this Lease, fully performs all of its covenants and duties in accordance with the provisions of this Lease, and no Default has occurred during. the Term, not later than two (2) months prior to the date of termination of this Lease, the Tenant and the Landlord may negotiate an extension or renewal of this Lease for a further term. 3. Use The Tenant shall continuously occupy the Premises throughout the Term, subject to and in accordance with the provisions of this Lease, solely for uses permitted by law and for no other use or purpose. The Tenant shall not commit or suffer or permit to be committed (i) any waste or damage, disfiguration or injury to the Premises or the improvements, installations, fixtures and equipment thereon and (ii) any nuisance in, at or on the Premises. The Tenant shall not do or permit anything to be done that results in the cancellation or threatened cancellation or the reduction of coverage under or threatened reduction of coverage under any insurance policy on the Premises or any part of it. 4. Demised Premises The demised premises is comprised of the Pro-Shop areas for this location. 5. Licensed Areas The Licensed Areas includes the non-exclusive use of the entrances, exits, stairs and the public washrooms of the aforesaid buildings. Also included is the non- exclusive use of the parking lot of the aforesaid buildings. 6. Basic Rent a) The Rent reserved by the Landlord by this Lease is one thousand, six hundred and eighty dollars ($1,680.00) per annum based on seven months of operation for Garnet B. Rickard Recreation location. The aforementioned rent is payable in equal monthly instalments of two hundred and forty dollars ($240.00) each in advance with the first instalment 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 Landlord however this lease rate does not include any taxes which would be applicable to this lease. b) The above noted annual lease rate is based on the Tenant occupying the leased space commencing September 1st to March 315 or part thereof for each lease term. Should the Tenant decide to operate longer than the aforementioned period the annual lease rate will be adjusted accordingly based on the noted monthly lease rate and the time which the lease space is operated. c) Notwithstanding paragraph 6(a) the Tenant shall pay to the Landlord during the Term of this Lease forthwith, after being given a written notice of demand, any increase in charges or significant increases in volume for electricity and water above the charges therefore that are made by the responsible provider of the service after the date as of which the Lease is made. PAGE 3 d) PST and GST and/or HST i) Without derogating from any other provision of this Lease, the Tenant shall be responsible for the payment of the Goods and Services Tax or Harmonized Sales Tax (HST) where applicable in respect to and in addition to the Rent required to be paid to the Landlord under this Lease. ii) In respect of goods and services sold by the Tenant or any person claiming or acting through, under or with the permission of the Tenant any commodity taxes applicable are th~ responsibility of the Tenant. iii) This lease will be governed by all ~xisting and future Federal, Provincial and Municipal Acts, By-laws and/o policies or revisions thereto. e) Other Charges (1) In each and every year during the erm of this Lease and any renewal or extension thereof, the Tenant shall b responsible for and pay and discharge promptly when due all municipal tax sand levies, including all general upper- tier levies, all special upper-tier levi s, and all education taxes or levies if applicable ,all charges for telephone used upon or in respect of the Premises or for fittings, machines, apparatus, eters or other things leased in respect thereof, and all work and services performed by any corporation or commission in connection with such utilities. Without limiting the foregoing in any way, during the Term, the Tenant shall also be responsible for and shall pay promptly the aggregate of all expenses and costs of every kind, without duplication, incurred by or on behalf of the Landlord for which the Tenant is responsible under the provisions of this Lease with respect to maintenance of the Demised Premises. (2) The Tenant shall (i) provide the Landlord within ten (10) days after receipt of same any tax bills, assessments, utility charges and other notices regarding the foregoing and (ii) promptly deliver to the Landlord receipts evidencing the payment of all the foregoing. If received by the Landlord, the Landlord shall promptly deliver to the Tenant any such tax bills, assessments, utility charges and. other notices regarding the foregoing. Hours of Operation a) Months of Operation The months of operations are to be established to ensure that both the pre- season user groups as well as the post-season user groups are serviced in an acceptable manner. b) Hours of Operation The hours of operation are to be established to ensure that all users are equally serviced. At the beginning of the season the Landlord shall meet to review the ice allocation with the Tenant. Both parties are to mutually agree upon hours of operation. c) Statutory Holidays The Landlord shall provide to the Tenant at the beginning of the season the dates which the facility will not be open. Dates which will have a direct impact on the Tenant will include but are not limited to the following: Labour Day, Thanksgiving Monday, Christmas Eve, Christmas Day, New Years Eve, New Years Day, Family Day, Easter Monday. All other days the Tenant is expected to open to the public. PAGE 4 8. Tenant's Duty to Maintain The Tenant at all times throughout the term shall maintain the premises in a satisfactory condition as determined by the Landlord. Acting reasonably, without limiting the foregoing, the Tenant shall keep the Premises in a clean condition; obtain at its expense, janitorial services, and daily operating expenses. 9. Net Lease The Tenant acknowledges, covenants and agrees that, except as herein expressly set out, it is intended that this Lease and the rentals herein provided to be paid shall be completely net and carefree to the Landlord. All amounts required to be paid by the Tenant hereunder (whether to the Landlord or third parties) shall be additional rent and all additional rent shall be payable and recoverable as Basic Rent, but in the manner herein provided, and the Landlord shall have all rights against the Tenant for default in any such payment as in the case of arrears of Basic Rent. 10. Repairs and Maintenance The Tenant hereby accepts the Premises on an "as is" basis. The Tenant, at its own expense, shall maintain and keep the Premises and every part thereof, in good working order and condition and promptly make all needed maintenance, repairs and replacements as would a prudent owner of similar premises (reasonable wear and tear and damage by fire, lightning and tempest and structural defects only excepted). The Tenant shall keep the Premises clean and in such condition as a prudent owner would do. If structural repairs or replacements to the roof, foundation or load bearing walls or the heating equipment of the Premises are required during the Term, then the Landlord shall be obligated, at its expense, to effect such repairs or replacements. The Tenant covenants with the Landlord to leave the Premises in as good repair as the Premises were at the commencement of the Term. 11. Maintenance on Municipal Owned Equipment The Landlord has provided for use by the Tenant Blademaster Skate Sharpening equipment. The Tenant shall be responsible for the daily care and maintenance on municipal owned equipment. The Landlord shall arrange for Blademaster to perform annual maintenance and inspection on the equipment prior to seasonal start-up. Should the equipment fail due to improper maintenance and/or misuse the costs to repair the equipment will be the responsibility of the Tenant. In the event of complete failure of the equipment due to no one's fault, during the term of the lease the Landlord and Tenant will meet to negotiate an alternative lease arrangement which reflects the loss of the use of this equipment. 12. Alterations (a) If the Tenant, during the Terms of this Lease or any renewal of it, desires to make any alterations or additions to the Premises, including but not limited to: erecting partitions, altering of counters, attaching equipment, and installing necessary furnishings or additional equipment of the Tenant's business, the Tenant may do so at his own expense, at any time and from time to time, if the following conditions are met: (i) before undertaking any alteration or addition the Tenant shall submit to the Landlord a plan showing the proposed alterations or additions and the Tenant shall not proceed to make any alteration or addition unless the Landlord has approved the plan, and the Landlord shall not unreasonably or arbitrarily withhold its approval and items included in the plan which are regarded by the Tenant as "Trade Fixtures" shall be designated as such on the plan; and PAGE 5 (ii) any and all alterations or additions to the Premises made by the Tenant must comply with all applicable building code standards and by-laws of the municipality in which the Premises are located. (b) The Tenant shall be responsible for and pay the cost of any alterations, additions, installations or improvements that any governing authority, municipal, provincial or otherwise, may require to be .made in, on or to the Premises. (c) No sign, advertisement or notice shall be inscribed, painted or affixed by the Tenant, or any other person on the Tenant's behalf, on any part of the inside or outside of the building in which the Premises are located unless the sign, advertisement or notice has been approved in every respect by the Landlord. (d) All alterations and additions to the Premises made by or on behalf of the Tenant, other than the Tenant's Trade Fixtures, shall immediately become the property of the Landlord without compensation to the Tenant. (e) The Tenant agrees, at his own expense and by whatever means may be necessary, immediately to obtain the release or discharge of any encumbrance that may be registered against the Landlord's property in connection with any additions or alterations to the Premises made by the Tenant or in connection with any other activity of the Tenant. 13. Insurance and Indemnification (a) The Tenant shall provide and maintain during the term of the lease Commercial /Comprehensive General Liability insurance acceptable to the Municipality and subject to limits of not less than $3,000,000.00 inclusive per occurrence for bodily injury, death and damage to property including loss of use thereof. (b) The Commercial /Comprehensive General Liability insurance policies shall be in the name of the Tenant and shall name the Landlord as an additional insured thereunder. (c) Such insurance policies shall contain an endorsement to provide the Municipality with thirty (30) days written notice of cancellation. (d) Evidence of insurance satisfactory to the Municipality's Insurance Administrator shall be provided prior to execution of the lease. If requested by the Landlord, Certified Copies of the above-referenced polity must be provided. The Tenant shall indemnify and save harmless the Landlord from any and all claims, demands, causes of action, loss, costs or damages that the Landlord may suffer, incur or be liable for, resulting from the performance of the Tenant of his obligations under the lease agreement, save and except damages, claims, demands, actions or cause of action arising out of or as a result of the actions of the Landlord, its agents or employees. And the Tenant shall provide the Landlord with a copy of the policy certified by the insurer. 14. Damaste and Destruction If the Premises are destroyed or damaged by fire, lightning, tempest or other casualty, then and in every such event if, in the opinion of the Landlord's architect, the damage or destruction of such Building renders the whole or any substantial part of the said Building unfit for occupancy or impossible or unsafe for use and occupancy or impossible for the Tenant to continue to carry on its business, either the Landlord or the Tenant may at its option, terminate this Lease by giving to the PAGE 6 other notice in writing of such termination, in which event, this Lease and the Term shall cease and be at an end as of the date of such destruction or damage, and the rent and all other payments for which the Tenant is liable under the terms of this Lease shall be apportioned and paid in full to the date of such destruction or damage; 15. Quiet Eniovment The Landlord covenants with the Tenant for quiet enjoyment. 16. Exclusivity The Tenant shall have the exclusive right to the pro-shop and related retail services. The Tenant shall not sell any product that would violate any agreement which the Landlord has within these facilities i.e. cold beverages, vending agreements. Junior Hockey teams who own their own equipment will. have the right to utilize this equipment for the sole purpose of sharpening only the members of their own teams' skates. These services will not be performed for any other person aside from a member of their own. 17. Emalovees of Tenant Tenant's employees must be in appropriate attire. Staff shall be neat, polite, and courteous at all times and shall perform their duties in a manner which shall present a high level of customer service for both the Tenant and the Landlord. Prior to hiring employees, the Tenant shall bring the content of this paragraph 1.2 (c) to their attention 18. Government Requirements The Tenant shall, at its sole cost and expense, during the Term: (a) observe and comply with all applicable governmental laws and regulations including, without limitation, federal and provincial legislative enactments, Building by-laws and other governmental or municipal regulations which relate to the Premises or the partitioning, equipment, operation and use thereof and to the making of any repairs, replacements, alterations, additions, changes, substitutions or improvements of or to the Premises. The Tenant shall comply with all police, fire and sanitary regulations imposed by any federal, provincial or municipal authorities, or made by insurance underwriters and shall observe all governmental and municipal regulations and other requirements governing the conduct of any business conducted in the Premises; (b) obtain all necessary permits, licenses and approvals relating to the use and occupancy of the Premises and the conduct of business therein; and (c) carry out all modifications, alterations or changes to the Premises and the Tenant's conduct of business in or use of the Premises which are required by any such authorities. The Tenant shall indemnify and hold the Landlord harmless against any penalty or fine imposed for any violation of any law, by-law or regulation by the Tenant or those for whom the Tenant is in law responsible. PAGE 7 19. Default The following events ("Events of Default") shall be deemed a default (a "default") under this Lease: (a) If the Tenant fails to pay any instalment of Basic Rent promptly when due or additional rent hereunder ("Additional Rent") no later than five (5) days following the respective due date; (b) If the Tenant fails to observe or perform any other term, covenant, condition or obligation under this Lease that is capable of remedy other than a default in the payment of Basic Rent or Additional Rent, and such default remains unremedied after thirty (30) days following written notice from the Landlord to the Tenant specifying such default and requiring the Tenant to remedy the default; (c) If the Tenant fails to observe and perform any other term, covenant, conditions or obligation under this Lease that is not capable of remedy other than a default in the payment of Basic Rent or Additional Rent and the Tenant receives written notice from the Landlord specifying such default; (d) If the Tenant makes an assignment for the benefit of its creditors generally, or if the Tenant is declared bankrupt or insolvent, or if a petition in bankruptcy is filed against the Tenant, or if the Tenant 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 Tenant's property, or if any steps are taken or any action or proceedings are instituted by the Tenant or by any other party including, without limitation, any court or governmental body of competent jurisdiction for the dissolution, winding-up or liquidation of the Tenant or its assets, unless such proceeding be set aside, discharged or abandoned within fourteen (14) days. For the purposes of this Subsection, "Tenant" shall mean the Tenant and any person carrying on business in or occupying the whole or any part of the Premises; (e) If, the Tenant makes or attempts to make any bulk sale of any of its assets situated in the Premises in contravention of the provisions of this Lease, or if any Tenant sells, disposes, removes or attempts to remove from the Premises a part of its trade fixtures, furniture, improvements, chattels or goods other than in the normal course of business so that there would in the event of such sale, disposal or removal be sufficient trade fixtures, furniture, improvements, chattels or goods of the Tenant on the Premises subject to distress to satisfy all rent due or accruing hereunder for a period of at least twelve (12) months; or (f) If the Premises becomes and remains vacant for a period of five (5) consecutive days. NOTE: This five day period will not be applicable during period of April 15t through to August 31 s . Upon an Event of Default, the full amount of Basic Rent and Additional Rent then owing and the current month's Basic Rent and Additional Rent together with the next ensuing three (3)months instalments of Basic Rent and Additional Rent shall immediately become due and payable unless the Landlord gives written notice to the Tenant to the contrary. PAGE 8 20. Right of Re-Entry Upon an Event of Default and at the opinion of the Landlord, the Landlord, 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 Premises without thereby terminating this Lease and remove and sell the Tenant's goods, chattels, equipment and trade fixtures therefrom, any rule of law or equity to the contrary notwithstanding. The Landlord may seize and sell such goods, chattels, equipment and trade fixtures of the Tenant as are in the Premises and may apply the proceeds thereof to all rent and other payments to which the Landlord is then .entitled under this Lease. Any such sale may be effected in the discretion of the Landlord by public auction or otherwise, and either in bulk or by individual item, or partly by one means and party by another, all as the Landlord in its sole discretion may decide. If any of the Tenant's property is disposed of as provided in this Section, ten (10) days prior notice to the Tenant of disposition shall be deemed to be commercially reasonable. 21. Right of Termination In addition to all rights and remedies of the Landlord available to it by any provision of this Lease or given by law to the Landlord, the Tenant agrees that upon an Event of Default the Landlord shall have the right to terminate this Lease upon notice in writing to the Tenant.. Upon such notice, this Lease shall terminate immediately without the necessity of any legal proceeding whatsoever. The Tenant shall thereupon within three (3) days quit and surrender the Premises to the Landlord, or if not yet in possession, the Tenant shall no longer have any right to possession of the Premises, and the Landlord, its agents and servants, shall have the right to enter the Premises and dispossess the Tenant and remove any persons or property therefrom without the .necessity of legal proceeding whatsoever and without being liable to the Tenant therefor in damages, or otherwise. Either party shall have the right to cancel this Lease at any time during the term by giving the other party no less than three (3) month prior written notice of termination. 22. Right to Re-let etc. If the Landlord re-enters pursuant to the provisions of either this Lease or any applicable law, the Landlord, without limiting its right to recover damages, may either terminate this Lease under this section or it may from time to time without terminating the Tenant's obligations under this Lease, make any alterations and repairs considered necessary by the Landlord to facilitate a reletting, and relet the Premises or any part thereof as agent of the Tenant for such term or terms and at such rental or rentals and upon such other terms and conditions as the Landlord in its reasonable discretion considers advisable. Upon each reletting, all rent and other moneys received by the Landlord from the reletting will be applied (i) to the payment of indebtedness other than rent due hereunder from the Tenant to the Landlord (ii) to the payment of costs and expenses of the reletting including brokerage fees, legal fees and costs of the alterations and repairs and (iii) to the payment of rent due and unpaid hereunder. The residue, if any, will be held by the Landlord and applied in payment of future rent as it becomes due and payable. If the rent received from the reletting during a month is less than the rent to be paid during that month by the Tenant, the Tenant shall pay the deficiency to the Landlord. The deficiency shall be calculated by the Landlord and paid monthly in advance on or before the first day of every month by the Tenant. No re-entry by the Landlord shall be construed as an election on its part to terminate this Lease unless a written notice of that intention is given to the Tenant. Despite a reletting without termination, the Landlord may elect at any time to terminate this Lease for a previous breach. PAGE 9 23. Damages If the Landlord shall terminate this Lease as provided herein, the Tenant shall pay to the Landlord on demand, rent hereunder up to the time of re-entry or termination, whichever shall be the later. 24. Seaarate Remedies The Landlord may from time to time resort to any or all of the rights and remedies available to it upon an Event of Default, either by any provision of this Lease or by statute or the general law, all of which rights and remedies are intended to be cumulative and not alternative and may be exercised generally or in combination. 25. Overholdina No Tacit Renewal If the Tenant remains in possession of the Premises after the end of the Term with the Consent of the Landlord but without having executed and delivered a new Lease, there is no tacit renewal of this Lease and the Term hereby granted, notwithstanding any statutory provisions or legal presumption to the contrary, and the Tenant shall be deemed to be occupying the Demised Premises as a Tenant 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 (1/12th) of the amount of the Rent payable by the Tenant 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, so far as these are applicable to a monthly tenancy. 26. 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 trade fixtures of the Tenant 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 Tenant or if a distress is made by the Landlord or if any action is brought to test the .right of the Landlord to levy upon any such goods as are so exempted, this Lease may be pleaded as an estoppel against the Tenant, the Tenant hereby waiving each and every benefit that could or might have accrued to the Tenant under and by virtue of any such statute by for this Lease. (b) Failure of the Landlord to insist upon the performance of any covenant or condition of this Lease or to exercise any right or option contained in this Lease shall not be construed as a waiver or relinquishment of any such covenant, conditions, right or option or of any subsequent breach of the same. No variation or waiver of any covenant or condition of this Lease shall be valid unless in writing and signed by duly authorized persons on behalf of the Landlord. 27. Covenants Every obligation of the Landlord or the Tenant expressed in this Lease, even though not expressed as a covenant, shall be a covenant for all purposes. The Tenant acknowledges that it shall have no right to any benefit of division or discussion. 28. Time of Essence Time shall be of the essence in all respects hereunder. PAGE 10 29. Enforceability If any term, covenant or condition of this Lease or the application thereof to any person or circumstance is to any extent held or rendered invalid, unenforceable or illegal, the remainder of this Lease or the application of such term, covenant or conditions 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. 30. Notices Any notice that one party hereto may desire or be required to give to the other party hereto shall for all purposes be deemed to have been sufficiently and properly given, if delivered personally or forwarded by registered mail and addressed in the case of the Landlord to: Municipality of Clarington The Landlord 40 Temperance Street, Bowmanville, Ontario L1C 3A6 Attention: Purchasing Manager and in the case of the Tenant to the Premises and shall be presumed to have been received on the date of delivery, if delivered personally, or if forwarded by registered mail on the third business day following such mailing. Any notice shall be in writing, except as expressly otherwise provided herein, and shall be given only by delivery as aforesaid in the event of post interruption. On The Edge Skate Sharpening of Courtice The Tenant: Attention: Jill Konarowski 51 Montague Avenue, Courtice, Ontario L1 E 3J7 31. Right to Sublet The Tenant shall not have the right to sublease any portion of their leased area. 32. Dangerous Use The Tenant shall not commit or permit anything which will increase the cost of the Landlord's insurance or render any insurance on or relating to the Premises subject to cancellation. 33. Rules Regarding Operation of Demised Premises The Municipality's Property Manager from time to time may give the Tenant written notice of rules regarding the operation of the premises. Such rules shall be complied with by the Tenant's and Sub-Tenants during the Term of the Lease and any extensions or renewal thereof. 34. Smoke Free Building The Tenant shall not permit or allow any person to smoke tobacco product anywhere in the building. 35. Enurement This Lease and everything herein contained shall enure to the benefit of and be binding upon the parties hereto their successors and permitted assigns respectively. PAGE 11 r 36. Governinsa Law This Lease shall be interpreted, governed and enforced in accordance with the law of the Province of Ontario, Canada. 37. Notice of Accident etc. The Tenant shall promptly notify the Landlord of any accident, defect, damage or deficiency in or on any part of the Premises which comes to the attention of the Tenant, it's employees or contractors, notwithstanding that the Landlord may have no obligation in respect thereof. IN WITNESS WHEREOF the parties have duly executed and unconditionally delivered this Lease as of the date first above written. By: THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON _ ~--'`' ~ _ Ji i et Mayor f, j` ~~ ON THE EDGE SKATE SHARPENING By: And: 'r r I .~ r r~„w+~ PAGE 12 THIS LEASE dated as of the ~ day of .Ta,,,,a,-~ zoio in pursuance of the Short Forms of Leases Act. BETWEEN: The Corporation of the Municipality of Clarington (hereinafter called the "Landlord") - and - ON THE EDGE SKATE SHARPENING (hereinafter called the "Tenant") OF THE SECOND PART LEASE AGREEMENT BETWEEN: The Corporation of the Municipality of Clarington (hereinafter called the "Landlord") -and - ON THE EDGE SKATE SHARPENING (hereinafter called the "Tenant") WHEREAS the Landlord has agreed to lease to the Tenant and the Tenant has agreed to lease from the Landlord the assigned space at the South Courtice Arena 1595 Prestonvale Road, Courtice of the Municipality of Clarington, Regional Municipality of Durham (the "Premises") for the purpose of operating afro-Shop. NOW THEREFORE THIS LEASE WITNESSES that in consideration of the rents, covenants and agreements hereinafter reserved and contained on the part of the Landlord and the Tenant, the Landlord leases to the Tenant, and the Tenant leases from the Landlord, the Premises on the following terms and conditions: Term 1.1 The Tenant shall have and hold as tenant for a term of two and a half (2'/z) years commencing January 1, 2010 and ending April 30, 2012 (hereinafter called the "Term"). There is an option to extend the term of the lease for a five year period at which point the rent shall be increased as per your proposal at a rate of $12.00 per month effective September 15t for each succeeding year. 1.2 Use (a) Throughout the Term of this Lease and any extension or renewal thereof, the Tenant shall use, permit or suffer the On The Edge Facilities to be used only for the purpose of a licensed pro-shop for the purpose of this Lease. Throughout the Term of this Lease and any extension or renewal thereof, the Tenant shall use, permit or suffer the Leased Areas, Facilities and Equipment only for the purposes intended by and during the times set out in this Lease. (b) At all times throughout the Term of this Lease and any extension or renewal thereof, the Tenant 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 Tenant at its cost shall obtain all necessary permits or licences required by applicable law in respect of any use which the Tenant or any person who claims under the Tenant, may make or permit or suffer any other person to make of any part of the Demised Premises. (c) The Tenant acknowledge and agrees that the Landlord shall not be responsible for any of the Tenant's costs, liabilities, or responsibilities in respect of employment contracts made by the Tenant with full-time and/or part-time employees of the Tenant or volunteers of the Tenant. None of the full-time or part-time employees of the Tenant shall be considered or deemed to be employees of the Municipality for any purpose, and none of them shall be considered to be required or to be eligible to participate in the Ontario Municipal Employees Retirement System. Prior to hiring employees, the Tenant shall bring the content of this paragraph 1.2 (c) to their attention. PAGE 2 2. Extension or Renewal of Lease If the Tenant punctually pays the Rent reserved hereby and all other moneys required to be paid by the Tenant or to any person by this Lease, fully performs all of its covenants and duties in accordance with the provisions of this Lease, and no Default has occurred during the Term, not later than two (2) months prior to the date of termination of this Lease, the Tenant and the Landlord may negotiate an extension or renewal of this Lease for a further term. 3. Use The Tenant shall continuously occupy the Premises throughout the Term, subject to and in accordance with the provisions of this Lease, solely for uses permitted by law and for no other use or purpose. The Tenant shall not commit or suffer or permit to be committed (i) any waste or damage, disfiguration or injury to the Premises or the improvements, installations, fixtures and equipment thereon and (ii) any nuisance in, at or on the Premises. The Tenant shall not do or permit anything to be done that results in the cancellation or threatened cancellation or the reduction of coverage under or threatened reduction of coverage under any insurance policy on the Premises or any part of it. 4. Demised Premises The demised premises is comprised of the Pro-Shop areas for this location. 5. Licensed Areas The Licensed Areas includes the non-exclusive use of the entrances, exits, stairs and the public washrooms of the aforesaid buildings. Also included is the non- exclusive use of the parking lot of the aforesaid buildings. 6. Basic Rent a) The Rent reserved by the Landlord by this Lease one thousand, nine hundred and twenty dollars ($1,920.00) per annum based on eight months of operation for South Courtice Arena location. The aforementioned rent is payable in equal monthly instalments of two hundred and forty dollars ($240.00) per month in advance with the first instalment 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 Landlord however this lease rate does not include any taxes which would be applicable to this lease. b) The above noted annual lease rate is based on the Tenant occupying the leased space commencing September 1st to April 30~' or part thereof for each lease term. Should the Tenant decided to operate longer than the period noted the annual lease rate will be adjusted accordingly based on the noted monthly lease rate and the time which the lease space is operated c) Notwithstanding paragraph 6(a) the Tenant shall pay to the Landlord during the Term of this Lease forthwith, after being given a written notice of demand, any increase in charges or significant increases in volume for electricity and water above the charges therefore that are made by the responsible provider of the service after the date as of which the Lease and Licence is made. PAGE 3 d) PST and GST and/or HST i) Without derogating from any other provision of this Lease, the Tenant shall be responsible for the payment of the Goads and Services Tax or .Harmonized Sales Tax (HST) where applicable in respect to and in addition to the Rent noted above and as required to be paid to the Landlord under this Lease. ii) In respect of goods and services sold by the Tenant or any person claiming or acting through, under or with the permission of the Tenant any commodity taxes applicable are the responsibility of the Tenant. iii) This lease will be governed by all existing and future Federal, Provincial and Municipal Acts, By-laws and/or policies or revisions thereto. e) Other Charges (1) In each and every year during the Term of this Lease and any renewal or extension thereof, the Tenant shall be responsible for and pay and discharge promptly when due all municipal taxes and levies, including all general upper- tier levies, all special upper-tier levies, and all education taxes or levies if applicable ,all charges for telephone used upon or in respect of the Premises or for fittings, machines, apparatus, meters or other things leased in respect thereof, and all work and services performed by any corporation or commission in connection with such utilities. Without limiting the foregoing in any way, during the Term, the Tenant shall also be responsible for and shall pay promptly the aggregate of all expenses and costs of every kind, without duplication, incurred by or on behalf of the Landlord for which the Tenant is responsible under the provisions of this Lease with respect to maintenance of the Demised Premises. (2) The Tenant shall (i) provide the Landlord within ten (10) days after receipt of same any tax bills, assessments, utility charges and other notices regarding the foregoing and (ii) promptly deliver to the Landlord receipts evidencing the payment of all the foregoing. If received by the Landlord, the Landlord shall promptly deliver to the Tenant any such tax bills, assessments, utility charges and other notices regarding the foregoing. Hours of Operation a) Months of Operation The months of operations are to be established to ensure that both the pre- season user groups as well as the post-season user groups are serviced in an acceptable manner. b) Hours of Operation The hours of operation are to be established to ensure that all users are equally serviced. At the beginning of the season the Landlord shall meet to review the ice allocation with the Tenant. Both parties are to mutually agree upon hours of operation. c) Statutory Holidays The Landlord shall provide to the Tenant at the beginning of the season the dates which the facility will not be open. Dates which will have a direct impact on the Tenant will include but are not limited to the following: Labour Day, Thanksgiving Monday, Christmas Eve, Christmas Day, New Years Eve, New Years Day, Family Day, Easter Monday. All other days the Tenant is expected to open to the public. PAGE 4 8. Tenant's Dutv to Maintain The Tenant at all times throughout the term shall maintain the premises in a satisfactory condition as determined by the Landlord. Acting reasonably, without limiting the foregoing, the Tenant shall keep the Premises in a clean condition; obtain at its expense, janitorial services, and daily operating expenses. 9. Net Lease The Tenant acknowledges, covenants and agrees that, except as herein expressly set out, it is intended that this Lease and the rentals herein provided to be paid shall be completely net and carefree to the Landlord. All amounts required to be paid by the Tenant hereunder (whether to the Landlord or third parties) shall be additional rent and all additional rent shall be payable and recoverable as Basic Rent, but in the manner herein provided, and the Landlord shall have all rights against the Tenant for default in any such payment as in the case of arrears of Basic Rent. 10. Repairs and Maintenance The Tenant hereby accepts the Premises on an "as is" basis. The Tenant, at its own expense, shall maintain and keep the Premises and every part thereof, in good working order and condition and promptly make all needed maintenance, repairs and replacements as would a prudent owner of similar premises (reasonable wear and tear and damage by fire, lightning and tempest and structural defects only excepted). The Tenant shall keep the Premises clean and in such condition as a prudent owner would do. If structural repairs or replacements to the roof, foundation or load bearing walls or the heating equipment of the Premises are required during the Term, then the Landlord shall be obligated, at its expense, to effect such repairs or replacements. The Tenant covenants with the Landlord to leave the Premises in as good repair as the Premises were at the commencement of the Term. 11. Maintenance on Municipal Owned Equipment The Landlord has provided for use by the Tenant Blademaster Skate Sharpening equipment. The Tenant shall be responsible for the daily care and maintenance on municipal owned equipment. The Landlord shall arrange for Blademaster to perform annual maintenance and inspection on the equipment prior to seasonal start-up. Should the equipment fail due to improper maintenance and/or misuse the costs to repair the equipment will be the responsibility of the Tenant. In the event of complete failure of the equipment due to no one's fault, during the term of the lease the Landlord and Tenant will meet to negotiate an alternative lease arrangement which reflects the loss of the use of this equipment. 12. Alterations (a) If the Tenant, during the Terms of this Lease or any renewal of it, desires to make any alterations or additions to the Premises, including but not limited to: erecting partitions, altering of counters, attaching equipment, and installing necessary furnishings or additional equipment of the Tenant's business, the Tenant may do so at his own expense, at any time and from time to time, if the following conditions are met: (i) before undertaking any alteration or addition the Tenant shall submit to the Landlord a plan showing the proposed alterations or additions and the Tenant shall not proceed to make any alteration or addition unless the Landlord has approved the plan, and the Landlord shall PAGE 5 not unreasonably or arbitrarily withhold its approval and items included in the plan which are regarded by the Tenant as "Trade Fixtures" shall be designated as such on the plan; and (ii) any and all alterations or additions to the Premises made by the Tenant must comply with all applicable building code standards and by-laws of the municipality in which the Premises are located. (b) The Tenant shall be responsible for and pay the cost of any alterations, additions, installations or improvements that any governing authority, municipal, provincial or otherwise, may require to be made in, on or to the Premises. (c) No sign, advertisement or notice shall be inscribed, painted or affixed by the Tenant, or any other person on the Tenant's behalf, on any part of the inside or outside of the building in which the Premises are located unless the sign, advertisement or notice has been approved in every respect by the Landlord. (d) All alterations and additions to the Premises made by or on behalf of the Tenant, other than the Tenant's Trade Fixtures, shall immediately become the property of the Landlord without compensation to the Tenant. (e) The Tenant agrees, at his own expense and by whatever means may be necessary, immediately to obtain the release or discharge of any encumbrance that may be registered against the Landlord's property in connection with any additions or alterations to the Premises made by the Tenant or in connection with any other activity of the Tenant. 13. Insurance and Indemnification (a) The Tenant shall provide and maintain during the term of the lease Commercial / Comprehensive General Liability insurance acceptable to the Municipality and subject to limits of not less than $3,000,000.00 inclusive per occurrence for bodily injury, death and damage to property including loss of use thereof. (b) The Commercial /Comprehensive General Liability insurance policies shall be in the name of the Tenant and shall name the Landlord as an additional insured thereunder. (c) Such insurance policies shall contain an endorsement to provide the Municipality with thirty (30) days written notice of cancellation. (d) Evidence of insurance satisfactory to the Municipality's Insurance Administrator shall be provided prior to execution of the lease. If requested by the Landlord, Certified Copies of the above-referenced polity must be provided. The Tenant shall indemnify and save harmless the Landlord from any and all claims, demands, causes of action, loss, costs or damages that the Landlord may suffer, incur or be liable for, resulting from the performance of the Tenant of his obligations under the lease agreement, save and except damages, claims, demands, actions or cause of action arising out of or as a result of the actions of the Landlord, its agents or employees. And the Tenant shall provide the Landlord with a copy of the policy certified by the insurer. PAGE 6 14. Damaae and Destruction If the Premises are destroyed or damaged by fire, lightning, tempest or other casualty, then and in every such event if, in the opinion of the Landlord's architect, the damage or destruction of such Building renders the whole or any substantial part of the said Building unfit for occupancy or impossible or unsafe for use and occupancy or impossible for the Tenant to continue to carry on its business, either the Landlord or the Tenant may at its option, terminate this Lease by giving to the other notice in writing of such termination, in which event, this Lease and the Term shall cease and be at an end as of the date of such destruction or damage, and the rent and all other payments for which the Tenant is liable under the terms of this Lease shall be apportioned and paid in full to the date of such destruction or damage; 15. Quiet Eniovment The Landlord covenants with the Tenant for quiet enjoyment. 16. Exclusivity The Tenant shall have the exclusive right to the pro-shop and related retail services. The Tenant shall not sell any product that would violate any agreement which the Landlord has within these facilities i.e. cold beverages, vending agreements. Junior Hockey teams who own their own equipment will have the right to utilize this equipment for the sole purpose of sharpening only the members of their own teams' skates. These services will not be performed for any other person aside from a member of their own. 17. Emolovees of Tenant Tenant's employees must be in appropriate attire. Staff shall be neat, polite, and courteous at all times and shall perform their duties in a manner which shall present a high level of customer service for both the Tenant and the Landlord. Prior to hiring employees, the Tenant shall bring the content of this paragraph 1.2 (c) to their attention 18. Government Requirements The Tenant shall, at its sole cost and expense, during the Term: (a) observe and comply with all applicable governmental laws and regulations including, without limitation, federal and provincial legislative enactments, Building by-laws and other governmental or municipal regulations which relate to the Premises or the partitioning, equipment, operation and use thereof and to the making of any repairs, replacements, alterations, additions, changes, substitutions or improvements of or to the Premises. The Tenant shall comply with all police, fire and sanitary regulations imposed by any federal, provincial or municipal authorities, or made by insurance undervuriters and shall observe all governmental and municipal regulations and other requirements governing the conduct of any business conducted in the Premises; (b) obtain all necessary permits, licenses and approvals relating to the use and occupancy of the Premises and the conduct of business therein; and (c) cony out all modifications, alterations or changes to the Premises and the Tenant's conduct of business in or use of the Premises which are required by any such authorities. The Tenant shall indemnify and hold the Landlord harmless against any penalty or fine imposed for any violation of any law, by-law or regulation by the Tenant or those for whom the Tenant is in law responsible. PAGE 7 19. Default The following events ("Events of Default") shall be deemed a default (a "default") under this Lease: (a) If the Tenant fails to pay any instalment of Basic Rent promptly when due or additional rent hereunder ("Additional Rent") no later than five (5) days following the respective due date; (b) If the Tenant fails to observe or perform any other term, covenant, condition or obligation under this Lease that is capable of remedy other than a default in the payment of Basic Rent or Additional Rent, and such default remains unremedied after thirty (30) days following written notice from the Landlord to the Tenant specifying such default and requiring the Tenant to remedy the default; (c) If the Tenant fails to observe and perform any other term, covenant, conditions or obligation under this Lease that is not capable of remedy other than a default in the payment of Basic Rent or Additional Rent and the Tenant receives written notice from the Landlord specifying such default; (d) If the Tenant makes an assignment for the benefit of its creditors generally, or if the Tenant is declared bankrupt or insolvent, or if a petition in bankruptcy is filed against the Tenant, or if the Tenant 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 Tenant's property, or if any steps are taken or any action or proceedings are instituted by the Tenant or by any other party including, without limitation, any court or governmental body of competent jurisdiction for the dissolution, winding-up or liquidation of the Tenant or its assets, unless such proceeding be set aside, discharged or abandoned within fourteen (14) days. For the purposes of this Subsection, "Tenant".shall mean the Tenant and any person carrying on business in or occupying the whole or any part of the Premises; (e) If, the Tenant makes or attempts to make any bulk sale of any of its assets situated in the Premises in contravention of the provisions of this Lease, or if any Tenant sells, disposes, removes or attempts to remove from the Premises a part of its trade fixtures, furniture, improvements, chattels or goods other than in the normal course of business so that there would in the event of such sale, disposal or removal be sufficient trade fixtures, furniture, improvements, chattels or goods of the Tenant on the Premises subject to distress to satisfy all rent due or accruing hereunder for a period of at least twelve (12) months; or (f) If the Premises becomes and remains vacant for a period of five (5) consecutive days. This five day period will not be applicable during period of May 1st through to August 31st. Upon an Event of Default, the full amount of Basic Rent and Additional Rent then owing and the current month's Basic Rent and Additional Rent together with the next ensuing three (3)months instalments of Basic Rent and Additional Rent shall immediately become due and payable unless the Landlord gives written notice to the Tenant to the contrary. PAGE 8 20. Risrht of Re-Entry Upon an Event of Default and at the opinion of the Landlord, the Landlord, 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 Premises without thereby terminating this Lease and remove and sell the Tenant's goods, chattels, equipment and trade fixtures therefrom, any rule of law or equity to the contrary notwithstanding. The Landlord may seize and sell such goods, chattels, equipment and trade fixtures of the Tenant as are in the Premises and may apply the proceeds thereof to all rent and other payments to which the Landlord is then entitled under this Lease. Any such sale may be effected in the discretion of the Landlord by public auction or otherwise, and either in bulk or by individual item, or partly by one means and party by another, all as the Landlord in its sole discretion may decide. If any of the Tenant's property is disposed of as provided in this Section, ten (10) days prior notice to the Tenant of disposition shall be deemed to be commercially reasonable. 21. Right of Termination In addition to all rights and remedies of the Landlord available to it by any provision of this Lease or given by law to the Landlord, the Tenant agrees that upon an Event of Default the Landlord shall have the right to terminate this Lease upon notice in writing to the Tenant. Upon such notice, this Lease shall terminate immediately without the necessity of any legal proceeding whatsoever. The Tenant shall thereupon within three (3) days quit and surrender the Premises to the Landlord, or if not yet in possession, the Tenant shall no longer have any right to possession of the Premises, and the Landlord, its agents and servants, shall have the right to enter the Premises and dispossess the Tenant and remove any persons or property therefrom without the necessity of legal proceeding whatsoever and without being liable to the Tenant therefor in damages, or otherwise. Either party shall have the right to cancel this Lease at any time during the term by giving the other party no less than three (3) month prior written notice of termination. 22. Right to Re-let etc. If the Landlord re-enters pursuant to the provisions of either this Lease or any applicable law, the Landlord, without limiting its right to recover damages, may either terminate this Lease under this section or it may from time to time without terminating the Tenant's obligations under this Lease, make any alterations and repairs considered necessary by the Landlord to facilitate a reletting, and relet the Premises or any part thereof as agent of the Tenant for such term or terms and at such rental or rentals and upon such other terms and conditions as the Landlord in its reasonable discretion considers advisable. Upon each reletting, all rent and other moneys received by the Landlord from the reletting will be applied (i) to the payment of indebtedness other than rent due hereunder from the Tenant to the Landlord (ii) to the payment of costs and expenses of the reletting including brokerage fees, legal fees and costs of the alterations and repairs and (iii) to the payment of rent due and unpaid hereunder. The residue, if any, will be held by the Landlord and applied in payment of future rent as it becomes due and payable. If the rent received from the reletting during a month is less than the rent to be paid during that month by the Tenant, the Tenant shall pay the deficiency to the Landlord. The deficiency shall be calculated by the Landlord and paid monthly in advance on or before the first day of every month by the Tenant. No re-entry by the Landlord shall be construed as an election on its part to terminate this Lease unless a written notice of that intention is given to the Tenant. Despite a reletting without termination, the Landlord may elect at any time to terminate this Lease for a previous breach. PAGE 9 23. Damages If the Landlord shall terminate this Lease as provided herein, the Tenant shall pay to the Landlord on demand, rent hereunder up to the time of re-entry or termination, whichever shall be the later. 24. Separate Remedies The Landlord may from time to time resort to any or all of the rights and remedies available to it upon an Event of Default, either by any provision of this Lease or by statute or the general law, all of which rights and remedies are intended to be cumulative and not alternative and may be exercised generally or in combination. 25. Overholding No Tacit Renewal If the Tenant remains in possession of the Premises after the end of the Term with the Consent of the Landlord but without having executed and delivered a new Lease, there is no tacit renewal of this Lease and the Term hereby granted, notwithstanding any statutory provisions or legal presumption to the contrary, and the Tenant shall be deemed to be occupying the Demised Premises as a Tenant 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 (1/12th) of the amount of the Rent payable by the Tenant 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, so far as these are applicable to a monthly tenancy. 26. 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 trade fixtures of the Tenant 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 Tenant or if a distress is made by the Landlord or if any action is brought to test the right of the Landlord to levy upon any such goods as are so exempted, this Lease may be pleaded as an estoppel against the Tenant, the Tenant hereby waiving each and every benefit that could or might have accrued to the Tenant under and by virtue of any such statute by for this Lease. (b) Failure of the Landlord to insist upon the pertormance of any covenant or condition of this Lease or to exercise any right or option contained in this Lease shall not be construed as a waiver or relinquishment of any such covenant, conditions, right or option or of any subsequent breach of the same. No variation or waiver of any covenant or condition of this Lease shall be valid unless in writing and signed by duly authorized persons on behalf of the Landlord. 27. Covenants Every obligation of the Landlord or the Tenant expressed in this Lease, even though not expressed as a covenant, shall be a covenant for all purposes. The Tenant acknowledges that it shall have no right to any benefit of division or discussion. 28. Time of Essence Time shall be of the essence in all respects hereunder. PAGE 10 29. Enforceability If any term, covenant or condition of this Lease or the application thereof to any person or circumstance is to any extent held or rendered invalid, unenforceable or illegal, the remainder of this Lease or the application of such term, covenant or conditions 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. 30. Notices Any notice that one party hereto may desire or be required to give to the other party hereto shall for all purposes be deemed to have been sufriciently and properly given, if delivered personally or forwarded by registered mail and addressed in the case of the Landlord to: Municipality of Clarington The Landlord 40 Temperance Street, Bowmanville, Ontario L1 C 3A6 Attention: Purchasing Manager and in the case of the Tenant to the Premises and shall be presumed to have been received on the date of delivery, if delivered personally, or if forwarded by registered mail on the third business day following such mailing. Any notice shall be in writing, except as expressly otherwise provided herein, and shall be given only by delivery as aforesaid in the event of post interruption. On The Edge Skate Sharpening of Courtice The Tenant: Attention: Jill Konarowski 51 Montague Avenue, Courtice, Ontario L1 E 3J7 31. Riaht to Sublet The Tenant shall not have the right to sublease any portion of their leased area. 32. Dangerous Use The Tenant shall not commit or permit anything which will increase the cost of the Landlord's insurance or render any insurance on or relating to the Premises subject to cancellation. 33. Rules Reaardina Operation of Demised Premises The Municipality's Property Manager from time to time may give the Tenant written notice of rules regarding the operation of the premises. Such rules shall be complied with by the Tenant's and Sub-Tenants during the Term of the Lease and any extensions or renewal thereof. 34. Smoke Free Building The Tenant shall not permit or allow any person to smoke tobacco product anywhere in the building. 35. Enurement This Lease and everything herein contained shall enure to the benefit of and be binding upon the parties hereto their successors and permitted assigns respectively. PAGE 11 36. Govemins~ Law This Lease shall be interpreted, governed and enforced in accordance with the law of the Province of Ontario, Canada. 37. Notice of Accident etc. The Tenant shall promptly notify the Landlord of any accident, defect, damage or deficiency in or on any part of the Premises which comes to the attention of the Tenant, it's employees or contractors, notwithstanding that the Landlord may have no obligation in respect thereof. IN WITNESS WHEREOF the parties have duly executed and unconditionally delivered this Lease as of the date first above written. THE CORPORATION OF THE MUNICIPALITY OF CLARINGTON gy. ~- -~--__ . i Mayci~r,-,~ ~ ~- ~ra~u-~. tsafxreyseuc._--=. _ . _ ON THE EDGE SKATE SHARPENING ay: ,~-~,/~ , And: ~ ~~,u,,,t%( PAGE 12