LEASE
THIS INDENTURE made the 22 nd day of April, 1999,
BETWEEN:
HARBOUR CENTRE COMPLEX LIMITED, as attorney-
in-fact for Lord Realty Holdings Limited and
Privest Properties Ltd., P.O. Box 12050,
555 West Hastings Street, Vancouver, British
Columbia;
(the "Landlord")
OF THE FIRST PART
AND:
E-XACT TRANSACTIONS LTD.
P.O. BOX 12088
555 WEST HASTINGS ST.
VANCOUVER, B.C.
V6B 4N5
(the "Tenant")
OF THE SECOND PART
DEFINITIONS
1.01 The Parties hereto agree that when used in this Lease or in any Schedule
attached to this Lease, the following words or expressions have the meanings
hereinafter set forth:
(a) "herein", "hereof", "hereby", "hereunder", "hereto", "hereinafter" and
similar expressions refer to this Lease and not to any particular
section, paragraph or other portion hereof, unless there is something in
the subject matter or context inconsistent therewith.
(b) "Building" means that part of Harbour Centre presently known as the
Harbour Centre Office Tower and consisting of 21 office floors and 2
mechanical floors located between the 5th (elevation 217.16 feet) and
the ceiling of the 28th floor (elevation 493.16 feet) together with the
office tower entrances and lobby at Hastings Street level (elevation
(154.25 feet) and the elevators and elevator shafts from the Hastings
Street level to the ceiling of the 28th floor.
(c) "Business Day" means any of the days from Monday to Friday inclusive of
each week unless such day is a holiday.
(d) "Capital Tax" means the tax or excise imposed upon the Landlord which
is measured by or based in whole or in part upon the capital employed
by the Landlord at and after the date of the substantial completion
of construction of the Building, imputed as if the amount of such tax
or excise were that amount due if the Building were the only real
property of the Landlord and includes the amount of any capital or
place of business tax levied by the Provincial Government or other
applicable taxing authority against the Landlord with respect to the
Building, which at the present is calculated as one fifth (1/5) of
one percent (1%) of the Landlord's "taxable paid-up capital" as
defined in the applicable legislation.
(e) "Commencement Date" means the date set out in Section 1 of Schedule 2.
1
(f) "Common Areas and Facilities" means (a) those areas, facilities,
utilities, improvements, equipment and installations in the Building
which, from time to time, are not designated or intended by the
Landlord to be leased to tenants of the Building, and (b) those
areas, facilities, utilities, improvements, equipment and
installations which serve or are for the benefit of the Building,
whether or not located within, adjacent to, or near the Building and
which are designated or intended by the Landlord from time to time as
part of the Common Areas and Facilities of the Building. Common
Areas and Facilities includes, without limitation, all areas,
facilities, utilities, improvements, equipment and installations
which are provided or designated (and which may be changed from time
to time) by the Landlord for the use or benefit of the tenants, their
employees, customers and other invitees in common with others
entitled to the use or benefit thereof in the manner and for the
purposes permitted by this Lease.
(g) "Harbour Centre" means the Lands and includes the Building and any other
buildings or improvements thereon and therein.
(h) "Landlord's Architect" means such firm of professional architects or
engineers as the Landlord may from time to time engage and includes any
consultant or consultants from time to time appointed by the Landlord or
the Landlord's Architect.
(i) "Lands" means those lands located in the City of Vancouver and described
as Block 13, District Lot 541, Plan 15728.
(j) "Leased Premises" means that part of the Building as outlined in red on
the plan attached hereto as Schedule 1, but excluding the exterior face
of the Building.
(k) "Net Rentable Area of the Building" means 249,755 square feet provided
that if from time to time there is a significant change in the rentable
space in the Building as a result of an addition thereto, partial
destruction thereof, or other cause, "Net Rentable Area of the Building"
shall thereafter mean the number of square feet of net rentable area of
the Building determined in accordance with Section 1.05 hereof.
(l) "Normal Business Hours" means the hours from 7:30 a.m. to 6:00 p.m.
on Business Days and the hours from 7:30 a.m. to 1:00 p.m. on
Saturdays except when Saturday is a holiday.
(m) "Operating Costs" means the total amounts paid or payable whether by
the Landlord or others on behalf of the Landlord for climate control
and maintaining, operating and repairing the Building, including
without limiting the generality of the foregoing, Capital Tax, the
aggregate of the amount paid for all fuel used in heating and the
purchase of steam for heating or other purposes, the amount paid or
payable for all electricity furnished by the Landlord to the
Building, the amount paid or payable on account of relamping and
reballasting pursuant to Section 14.01 hereof; the amount paid or
payable for all hot and cold water other than that chargeable to
tenants by reason of their extraordinary consumption of water; the
amount paid or payable for all labour and/or wages including
benefits, and other payments made to or for the benefit of janitors,
caretakers, and other employees of the Landlord (including wages and
benefits of the building manager) involved in the maintenance of the
Building, managerial and administrative expenses related to the
Building; the total charges of any independent contractors employed
in the repair, care, maintenance, and cleaning of the Building, the
amount paid or payable for all supplies (including all supplies and
necessities which are occasioned by everyday wear and tear); the
costs of window cleaning, maintenance of the Directing Board of the
Building, telephone and utility costs; the cost of accounting
services necessary to compute the rents and charges payable by the
tenants of the Building; the cost of operating, repairing and
maintaining the Building elevators; the cost of porters, guards and
other protection services; payments for general maintenance and
repairs to the plant and equipment supplying climate control; and the
amount paid for premiums for all insurance including that provided
for in Section 45.01 hereof. There shall be included in Operating
Costs that portion, which the Landlord acting reasonably considers to
be applicable to the Building, of any and all costs and expenses of
the same nature as the foregoing costs and expenses but which are
incurred either:
(i) with respect to the Building in common with other parts of
Harbour Centre; or
2
(ii) with respect to parts of Harbour Centre used by tenants of the
Building and their employees and those doing business with them
in common with the tenants of other elements of Harbour Centre
and their employees and those doing business with them.
Operating Costs shall not include depreciation except:
(iii) depreciation of costs incurred for repairing and replacing
fixtures, equipment and facilities serving or comprising the
Building (including the heating, ventilating, air-conditioning
and climate control systems serving the Building) which by their
nature require periodic repair or replacement and which are not
charged fully in the year in which they are incurred, at rates
determined from time to time by the Landlord in accordance with
sound accounting principles;
(iv) cost of improvements properly charged to the Landlord's capital
account which substantially reduce Operating Costs and herein
defined amortized over their useful life as determined by the
Landlord in accordance with sound accounting principles; and
(v) interest calculated at two (2) percentage points per annum above
the annualized average daily prime bank commercial lending rate
charged during the period for which Operating Costs are being
calculated by any Canadian chartered bank designated from time to
time by the Landlord upon the undepreciated or unamortized
portion of the cost referred to in the preceding subsections
(m)(iii) and (iv).
Except as provided in subsection (m)(v) above, Operating Costs shall not
include interest on debts, capital retirement of debt, or other costs
properly chargeable to capital account, or costs directly chargeable by
the Landlord to any tenant or tenants of the Building pursuant to
sections of this Lease other than Section 11.01 hereof and the
corresponding provisions of their respective leases, or costs for which
the Landlord is reimbursed by the proceeds of insurance claims to the
extent of such reimbursement. If at any time during any fiscal period
the Building shall be less than ninety-five percent (95%) occupied by
tenants, the Landlord shall have the right to adjust any cost incurred
in the Building that is related to tenant occupancy so that the Landlord
will fully recover its expenditure and Operating Cost for such fiscal
period shall be deemed to be the amount of Operating Cost which would
have been incurred if the Building had been ninety-five percent (95%)
occupied by tenants during the whole of the fiscal period.
(n) "Proportionate Share" means the fraction which has as its numerator the
Tenant's Floor Area and which has as its denominator the Net Rentable
Area of the Building.
(o) "Rent" includes amounts referred to as rent, rental, additional rent or
additional rental.
(p) "Taxes" means all real property taxes, rates, duties and assessments
(including local improvement taxes), impost charges or levies,
whether general or special, that are levied, rated, charged or
assessed against Harbour Centre or any part or parts thereof from
time to time by any lawful taxing authority (whether federal,
provincial, municipal, school or otherwise), and any taxes or other
amounts which are imposed in lieu of, or in addition to, any such
real property taxes (whether of the foregoing character or not and
whether in existence at the Commencement Date or not), and any such
real property taxes and any amounts in lieu thereof levied or
assessed against the Landlord or the owner of Harbour Centre with
respect thereto or its interest therein but excludes such taxes as
Capital Tax, capital gains taxes, corporate, income, profits or
excess profits taxes.
(q) "Tenant's Floor Area" means, subject to Section 4.02, the number of
square feet set out in Section 2 of Schedule 2, calculated in accordance
with Section 1.05.
(r) "Term" means the period set out in Section 3 of Schedule 2.
(s) "Fair Market Rent" means that rent that would be paid for leases of
similar duration for office space similar to the Leased Premises in
office buildings of similar age, class, size, amenities and leasehold
improvements as between persons dealing in good faith and at arm's
length but excluding consideration of any signing bonus, leasehold
improvement allowance, rent free period or other inducement payment.
3
When applicable, the Landlord and Tenant shall make bona fide efforts to
agree as to the Fair Market Rent payable. If, however, the parties have
not agreed as to the amount of rent by the sixtieth (60th) day prior to
the commencement of the term in question, then such rent shall be
determined either:
(i) by an arbitrator mutually agreed upon by the parties who shall be a
person currently active in the Province of British Columbia as an
Accredited Real Estate appraiser having not less than five years
experience as an appraiser; or
(ii) if the parties are unable to agree as to an arbitrator pursuant to
the clause (i) of this paragraph, then such Fair Market Rent shall
be determined by a single arbitrator in accordance with the
provisions of the Commercial Arbitration Act S.B.C. 1986, c. 3 and
amendments thereto or legislation in substitution therefore.
DEFINITIONS - LANDLORD AND TENANT
1.02 Unless the context otherwise requires, the word "Landlord" wherever it is
used herein shall be construed to include and shall mean the Landlord, its
successors and/or assigns, and the word "Tenant" shall be construed to include
and shall mean the Tenant, and the executors, administrators, successors and/or
assigns of the Tenant and when there are two or more tenants, or two or more
persons bound by the Tenant's covenants herein contained, their obligations
hereunder shall be joint and several; the word "Tenant" and the personal pronoun
"it" relating thereto and used therewith shall be read and construed as
"Tenants", and "his", "her", "its", or "their" respectively, as the number and
gender of the party or parties referred to each require and the number of the
verb agreeing therewith shall be construed so as to agree with the said word or
pronoun so substituted.
CONSTRUCTION OF LEASE TERMS
1.03 All provisions of this Lease are to be construed as covenants and
agreements as though the words importing such covenants and agreements were used
in each separate provision hereof. If any provision or provisions of this Lease
are illegal or not enforceable, it or they shall be considered separate and
severable from this Lease and its remaining provisions shall remain in force and
be binding upon the parties hereto as though the said provision or provisions
had never been included.
CAPTIONS
1.04 The captions appearing within the body of this Lease have been inserted as
a matter of convenience and for reference only and in no way define, limit or
enlarge the scope or meaning of this Lease or of any provision hereof.
CALCULATION OF "TENANT'S FLOOR AREA" AND
"NET RENTABLE AREA OF THE BUILDING"
1.05 "Tenant's Floor Area" and "Net Rentable Area of the Building" shall be
calculated from time to time as follows:
(a) SINGLE TENANCY FLOOR The net rentable area, whether above or below grade,
shall be calculated (from dimensioned Architect's drawings) to the inside face
of the glass on outer Building walls. It shall include all space within outer
Building walls except for stairs, elevator shafts, and flues and stacks for
washrooms. No deduction shall be made for washrooms, janitor closets, or
electrical or telephone cupboards within and servicing that floor or for any
other rooms, corridors or areas available to the tenant on that floor for its
use, furnishings or personnel, or for any columns or projections located wholly
or partially within the space, or for any enclosures, ducts, flues, piping or
rooms used for the purpose of cooling, heating or ventilating.
(b) MULTIPLE TENANCY FLOOR The net rentable area, whether above or below grade,
shall be the sum of all rentable spaces on that floor with the rentable space of
each office on such floor being calculated (from dimensioned Architect's
drawings) to the inside face of the glass as described above for a single
tenancy floor, to the face of permanent interior walls, to the centre-line of
partitions forming public corridors, and to the centre-line of partitions
separating adjoining rentable spaces. No deductions shall be made for any
columns or projections located wholly or partially within the rentable space, or
for any enclosures around the periphery of the Building used for the purpose of
cooling, heating or ventilating.
4
The common area of an office floor, which includes all elevator lobbies,
corridors, washrooms, janitor closets and electrical and telephone cupboards
contained on that floor, any enclosures, ducts, flues, piping or rooms used for
the purpose of heating or cooling or ventilating and not included above shall be
computed by deducting the net rentable space based on multiple tenancy from the
net rentable space based on single tenancy and shall be allocated pro rata to
the net rentable space of Tenant's premises on that floor to determine Tenant's
Floor Area.
NET LEASE
1.06 The Tenant acknowledges and agrees that it is intended that this Lease is a
completely carefree net lease to the Landlord, except as expressly herein set
out, that the Landlord is not responsible during the Term for any costs,
charges, expenses and outlays of any nature whatsoever arising from or relating
to the Leased Premises, or the use and occupancy thereof, or the contents
thereof or the business carried on therein, and the Tenant shall pay all
charges, impositions, costs and expenses of every nature and kind relating to
the Leased Premises except as expressly herein set out.
LEASED PREMISES
2.01 In consideration of the Rent, covenants and agreements hereinafter reserved
and contained on the part of the Tenant to be respectively paid, observed and
performed, the Landlord hereby demises and leases to the Tenant the Leased
Premises, together (subject to Section 17.01 hereof) with the right of the
Tenant, the Tenant's employees, agents, suppliers and persons having business
with the Tenant in common with the Landlord, its other tenants, subtenants and
all others entitled thereto to the use of the following:
(a) the entrance foyer and lobby of the Building;
(b) the corridors and lavatories on the floor(s) of the Building on
which the Leased Premises are situate;
(c) public entrance doors, halls, stairways, passages, elevators, in
the Building; and
(d) the shipping and receiving areas in Harbour Centre designated from
time to time by the Landlord.
TERM OF LEASE
3.01 TO HAVE AND TO HOLD the Leased Premises unto the Tenant for and during the
Term subject to the payment of Rent and the fulfilment by the Tenant of the
covenants and conditions hereinafter set forth.
RENT
4.01 The Tenant shall pay without deduction, set-off or abatement to the
Landlord or to such other party as the Landlord may designate, yearly and every
year during the Term, a rent of the amount set out in Section 4 of Schedule 2 in
lawful money of Canada payable in equal consecutive monthly instalments of the
amount set out in Section 5 of Schedule 2 in advance on the first day of each
month during the Term, the first of such payments to be made on the Commencement
Date. If the Term commences on any day other than the first or expires on any
day other than the last day of a month, rent for the fractions of a month at the
commencement and at the end of the Term shall be adjusted pro rata on a per diem
basis. If the Tenant shall commence to do business from the Leased Premises
prior to the Commencement Date the Tenant shall pay during such period a pro
rata rental calculated on a per diem basis. The Tenant, if requested by the
Landlord, shall deliver to the Landlord at the beginning of each year of the
Term, a series of monthly postdated cheques for such year for the amount of Rent
payable hereunder.
ADJUSTMENT OF RENT WHEN AREAS ARE MEASURED AND CHANGED
4.02 PROVIDED, that if the Tenant's Floor Area was estimated by or on behalf of
the Landlord for the purposes of this Lease because the rentable area thereof
could not be accurately calculated prior to the execution of the Lease, or if
the rentable area of the Leased Premises changes at any time during the Term,
then, when the rentable area of the Leased Premises can be accurately calculated
and if the estimate previously made was not correct or has changed, the Tenant's
Floor Area shall then be calculated as set forth in Section 1.05 and the
appropriate adjustments made with respect to Rent payable under this Lease.
5
COMMENCEMENT AND CONDUCT OF BUSINESS
5.01 The Tenant shall commence its business in the Leased Premises on the
Commencement Date and thereafter shall operate its business in the whole of the
Leased Premises in a reputable manner and in compliance with the provisions of
this Lease and the requirements of all applicable governmental laws and
regulations during all Business Days during the Term hereof, provided that
nothing in this Section shall require the Tenant to carry on business during any
period prohibited by any law or by-law regulating or limiting the hours during
which such business may be carried on.
BUSINESS AND OTHER TAXES
6.01 The Tenant shall pay all taxes levied, rates, imposed, charged or assessed
against and in respect of the Tenant's occupancy of the Leased Premises or in
respect of the personal property, trade fixtures, furniture and facilities of
the Tenant or the business or income of the Tenant on and from the Leased
Premises if, as and when the same become due, and will indemnify and keep
indemnified the Landlord from and against all payment of all loss, costs,
charges and expenses occasioned by or arising from any and all such taxes, and
also if the Tenant or any person occupying the Leased Premises or any part
thereof shall elect to have the Leased Premises thereof assessed for Separate
School taxes, the Tenant shall pay to the Landlord as soon as the amount of the
Separate School taxes is ascertainable, any amount by which the Separate School
taxes exceed the amount which would have been payable for school taxes had such
election not been made as aforesaid.
The Tenant further covenants and agrees that upon written request of the
Landlord the Tenant will promptly deliver to it for inspection receipts for
payment of all taxes payable by the Tenant under this Section 6.01 which were
due and payable up to one (1) month prior to such request, and in any event will
furnish the Landlord if requested by the Landlord, evidence of such payments
satisfactory to the Landlord before the 21st day of January in each year
covering payments for the preceding year.
TAX ON TENANT'S LEASEHOLD IMPROVEMENTS, MACHINERY TAX
7.01 The Tenant shall pay to the Landlord as additional rental in accordance
with Section 12.01 hereof, in respect of each applicable tax year, an amount
equal to that portion of the Tax for such tax year as reasonably determined by
the Landlord, which may reasonably be regarded as being attributable to the
fixtures, improvements, installations, alterations, additions, equipment and
machinery from time to time made, erected or installed in the Leased Premises by
or on behalf of the Tenant or by or on behalf of any previous occupant of the
Leased Premises.
TAX ON LEASED PREMISES
8.01 The Tenant shall (i) pay as additional rental to the Landlord or to the
taxing authorities if the Landlord so directs, and discharge in each year during
the Term and within the times provided for by the taxing authorities, all Taxes
that are levied, rated, charged or assessed from time to time against or with
respect to the Leased Premises or any part thereof, on the basis of a separate
real property tax bill and separate real property assessment notice rendered by
any lawful taxing authority; (ii) provide the Landlord within ten (10) days
after demand, with a copy of any separate tax bills and assessment notices for
the Leased Premises or any part thereof; (iii) promptly deliver to the Landlord
receipts evidencing the payment of all such Taxes payable to any such taxing
authorities as aforesaid and furnish such other information in connection
therewith as the Landlord reasonably requires; and (iv) pay as additional rent
its Proportionate Share of all Taxes levied, rated, charged or assessed against
the Common Areas and Facilities on the basis of a separate tax bill for the
Common Areas and Facilities, and as the Landlord shall reasonably allocate to
the tenants of the Building; and (v) pay to the federal, provincial or municipal
authority imposing the same all service, business transfer, transaction value,
ad valorem or other taxes by whatever name called, if any, assessed upon and as
a direct result of the payment of rent hereunder as often as such taxes become
due and whether or not such taxes are applicable on the date of the execution of
this lease or become applicable thereafter. In the event that such taxes are by
statute, by-law or regulation, imposed upon or payable by the Landlord as
recipient of the rent, the Tenant shall reimburse the Landlord for the full
amount of such taxes within thirty (30) days of such taxes becoming due.
6
TAX ON LANDS NOT SEPARATELY ASSESSED
9.01 If, with respect to any Taxes, there are not separate real property tax
bills and separate real property assessment notices for the Leased Premises and
the Common Areas and Facilities the Tenant shall pay within ten (10) days after
demand therefore by the Landlord, as additional rental, a share (the "Tenant's
Share"), as reasonably allocated to the Leased Premises by the Landlord of all
such Taxes which are levied, rated, charged or assessed by any lawful authority
against, or in relation to Harbour Centre. The Tenant's Share of such Taxes
shall be determined as follows:
The Landlord shall reasonably allocate any Taxes for which separate real
property tax bills and separate real property assessment notices are not
issued, firstly as between the Building and the other improvements
comprising Harbour Centre; and secondly as between each of the
individual leasable premises within the Building; in each case on such
basis as the Landlord in its sole opinion determines equitable, having
regard, among other things, to the various uses of the premises within
Harbour Centre and the Building intended for leasing, the cost of
original construction and the location of each of the individual
leasable premises within the Building.
The Tenant shall pay such portion of the Taxes allocated to the Leased Premises
as aforesaid. The foregoing payment constitutes the Tenant's Share of Taxes and
shall be made in accordance with Section 12.01.
PER DIEM ADJUSTMENT OF TAXES
10.01 If the Term of this Lease does not commence or end at the beginning or end
of a calendar year, respectively, the Taxes that the Tenant is required to pay
pursuant to Sections 8.01 and 9.01 hereof shall be subject to a per diem
adjustment based upon a period of 365 days.
OPERATING COSTS
11.01 The Tenant shall pay to the Landlord as additional rental in accordance
with Section 12.01 hereof the Tenant's Proportionate Share of Operating Costs
during each year of the Term. If the Term does not commence or end at the
beginning or end of a calendar year, respectively, such amount payable by the
Tenant for the appropriate periods of the Term shall be estimated by the
Landlord acting reasonably and reduced proportionately on a per diem basis.
PAYMENT OF ESTIMATED ADDITIONAL RENTALS
12.01 Any additional rentals payable by the Tenant under Sections 7.01, 8.01,
9.01 and 11.01 hereof shall be paid as follows unless otherwise provided:
(a) In each year of the Term the Tenant shall pay to the Landlord
monthly in advance one-twelfth (1/12th) of the amount of such
additional rentals payable under Sections 7.01, 8.01, 9.01 and 11.01
for each year of the Term as reasonably estimated by the Landlord in
advance to be due from the Tenant. Such estimate may be adjusted by
the Landlord and the Tenant shall pay instalments of such additional
rentals according to such estimate, as adjusted.
(b) If the aggregate amount of such additional rental payments made by
the Tenant in any year of the Term should be greater than such
additional rentals due for such year, then should the Tenant not be
otherwise in default hereunder, the amount of such excess will be
applied by the Landlord to the next succeeding instalments of such
additional rentals due hereunder; and if there be any such excess
for the last year of the Term, the amount thereof will be refunded
by the Landlord to the Tenant within thirty (30) days after the
Landlord's financial statements have been prepared for the
Landlord's fiscal year during which the expiration or earlier
termination of the Term occurs provided the Tenant is not otherwise
in default under the terms of the Lease at the date of expiry or
earlier termination of this Lease.
7
(c) Notwithstanding the foregoing, if the Landlord is required to prepay
any amount which it is entitled to collect in whole or in part from
the Tenant or if the Landlord is required to pay any such amount
more frequently than required as at the Commencement Date the Tenant
shall pay to the Landlord its portion of such amount calculated in
accordance with this Lease forthwith upon demand.
ADDITIONAL ELECTRICITY CHARGES
13.01 If, in the Landlord's reasonable opinion, the Tenant causes any extra or
unusual power consumption beyond the average power consumption of other tenants
in the Building, including, by way of example only, that caused by special
equipment, by multiple shift occupancy or by occupancy during other than Normal
Business Hours then the Landlord may estimate the cost of such extra or unusual
power consumption and charge such cost directly to the Tenant. The Tenant shall
pay any such costs to the Landlord on written demand as additional rent.
REPLACEMENT OF BULBS, TUBES, BALLASTS AND LIGHT FIXTURE PARTS
14.01 The Landlord shall have the exclusive right to attend to any replacement
of electric light bulbs, tubes and light fixture parts in the Leased Premises
throughout the Term. The Landlord may adopt a system of relamping and
reballasting periodically on a group basis in accordance with good practice.
COST OF METERS
14.02 The Tenant covenants to pay for the cost of any metering which may be
requested by the Tenant to be installed by the Landlord in the Building for the
purpose of determining any utility (including electricity and water) consumed in
the Leased Premises or which may be reasonably required by the Landlord to
measure any excess usage of electricity or water.
TENANT'S USE OF ELECTRICITY
14.03 The Tenant's use of electricity in the Leased Premises shall be for the
operation of lighting and business machines, electrical fixtures such as
personal computers and other small office machines and lamps and shall not at
any time exceed the capacity of any of the electrical conductors and equipment
in or otherwise serving the Leased Premises.
In order to ensure that such capacity is not exceeded and to avert
possible adverse effect upon the Building's electrical services, the Tenant
shall not, without the Landlord's prior written consent in each instance,
connect any additional fixtures, appliances or equipment (other than normal
office electrical fixtures, lamps, personal computers and similar small office
machines) to the Building's electrical distribution system or make any
alteration or addition to the electric system of the Leased Premises existing at
the commencement of the Term. If the Landlord grants such consent, the cost of
all additional risers and other equipment required therefor shall be paid as
additional rental by the Tenant to the Landlord upon demand. As a condition to
granting such consent, the Landlord may require the Tenant to agree to an
increase in the additional rental for electricity by an amount which will
reflect the increased cost to the Landlord of the additional services to be
furnished by the Landlord.
COST OF REPAIRS PAYABLE BY TENANT
15.01 If the Building, other parts of Harbour Centre, the elevators, boilers,
engines, pipes and other apparatus (or any of them) used for the purpose of
climate control of the Building or other parts of Harbour Centre or operating
the elevators, or if the water pipes, drainage pipes, electric lighting or other
equipment of the Building or other parts of Harbour Centre or the roof or
outside walls of the Building or other parts of Harbour Centre require repair or
are damaged or destroyed through the negligence, carelessness or misuse of the
Tenant, his servants, agents, employees or anyone permitted by him to be in the
Building, or through him or them in any way stopping up or injuring the heating
apparatus, elevators, water pipes, drainage pipes or other equipment or part of
the Building or Harbour Centre, the cost of the necessary repairs, replacements
of alterations shall be borne by the Tenant who shall pay the same to the
Landlord as additional rental forthwith on demand.
8
REPAIR OF LEASED PREMISES BY TENANT
15.02 The Tenant shall repair the Leased Premises, including without limiting
the generality of the foregoing, all interior partitions, fixtures and leasehold
improvements in the Leased Premises and all electrical and telephone outlets and
conduits and any fixtures and shelving, and special mechanical and electrical
equipment not a normal part of the Building installed by or for the Tenant,
reasonable wear and tear, damage resulting from structural defect, fire,
lightning and tempest and other casualty with respect to which the Landlord has
received proceeds of insurance only excepted; and the Landlord may enter and
view the state of repair and the Tenant will forthwith repair according to
written notice in writing, subject only to the foregoing exceptions.
PEACEABLE SURRENDER
15.03 At the end of the Term or upon the sooner termination of the Term, the
Tenant shall peaceably surrender and yield up the Leased Premises to the
Landlord in good repair and in a state of broom cleanliness, subject only to the
exceptions set forth in Sections 15.02 and 43.01 hereof.
TIDY CONDITION OF LEASED PREMISES
15.04 The Tenant agrees to leave the Leased Premises in a reasonably tidy
condition at the end of each Business Day for the purpose of the performance of
the Landlord's cleaning services.
OCCUPATION OF LEASED PREMISES
16.01 The Tenant shall not permit any part of the Leased Premises to be used or
occupied by any persons other than the Tenant, any subtenants permitted under
Sections 16.02 and 16.03, and the employees of the Tenant and of any such
permitted subtenant, and shall not permit any part of the Leased Premises to be
used or occupied by any licensee or concessionaire, or permit any persons to be
upon the Leased Premises other than the Tenant, such permitted subtenants, and
their respective employees, customers and others having lawful business with
them.
ASSIGNMENT, SUBLETTING, PARTING WITH POSSESSION
16.02 The Tenant shall not assign this Lease nor sublet nor part with possession
of all or part of the Leased Premises without the prior written consent of the
Landlord, which consent shall not be unreasonably withheld; provided however,
such leave to any assignment or subletting shall not relieve the Tenant from its
obligations for the payment of Rent and for the full and faithful observance and
performance of the covenants, terms and conditions herein contained during the
Term and any Renewal Term.
LANDLORD'S RIGHTS
16.03 Provided further and notwithstanding anything hereinbefore set forth:
(a) If at any time of any proposed assignment or subletting, and from
time to time, the Tenant proposes to assign this Lease or sublet all
or part of the Leased Premises, the Tenant shall send to the Landlord
a notice in writing setting forth the name and address of the
proposed assignee or subtenant and such information as to the nature
of its business and its financial responsibility and standing as the
Landlord may reasonably require, and all the terms and conditions of
the proposed assignment or sublease. Within fifteen (15) days from
the submission of such notice of the Tenant the Landlord may elect to
terminate this Lease by giving to the Tenant a notice of intention to
do so, fixing a date of termination not sooner than the date the
subtenant or assignee proposes to occupy the Leased Premises and the
Tenant shall deliver up vacant possession of the Leased Premises on
such date of termination and the Lease shall terminate and
adjustments shall be made in Rent, Taxes and other charges payable by
any party under this Lease. If the Landlord fails to elect to
terminate this Lease pursuant to the foregoing, the provisions of
Sections 16.02, 16.03(d) and 16.03(e) shall apply to such assignment
or subletting.
9
(b) A notice by the Tenant to the Landlord pursuant to Section 16.03(a) may
be withdrawn by the Tenant at any time prior to the earlier of the
proposed effective date specified therein and the day which is ten days
after the date of the Landlord's notice responding thereto.
(c) The Tenant shall have the right without the consent of the Landlord,
to assign this Lease to a company incorporated or to be incorporated
by the Tenant provided that the Tenant owns or beneficially controls
all the issued and outstanding shares in the capital of the company.
Such assignment shall, however, not relieve the Tenant from its
obligations for the payment of rent and for the full and faithful
observance and performance of the covenants, terms and conditions
herein contained.
(d) Any document or consent evidencing an assignment of this Lease or a
subletting of all or part of the Leased Premises if consented to by
the Landlord shall be prepared by the Landlord or its solicitors and
all legal costs with respect thereto together with the amount of
$250.00 on account of the Landlord's administrative costs shall be
paid by the Tenant to the Landlord forthwith upon demand as
additional rent. Any consent by the Landlord shall be subject to the
Tenant causing such assignee or sublessee to promptly execute an
agreement directly with the Landlord agreeing to be bound by all of
the terms, covenants and conditions contained in this Lease as if
such assignee or sublessee had originally executed this Lease as
Tenant.
(e) Any assignment or purported assignment of this Lease (except in
accordance with Section 16.03 (c)), subletting or licensing, or
purported subletting or licensing of all or part of the Leased Premises
without the Landlord's written consent as herein provided shall be null
and void.
TRANSFER OF SHARES OF TENANT
16.04 If the Tenant is a corporation or if this Lease is assigned to a
corporation, and if at any time during the Term any part or all of the corporate
shares or voting rights of shareholders shall be transferred by sale,
assignment, bequest, inheritance, trust, operation of law or other disposition,
or treasury shares be issued so as to result in a change in the control of said
corporation by reason of ownership of greater than fifty percent (50%) of the
voting shares of the corporation or otherwise, such a change of control shall be
deemed to be an assignment of this Lease and the Tenant shall forthwith notify
the Landlord in writing of such change and the Landlord shall have the right to
terminate this Lease and the Term, at any time after such change of control by
giving the Tenant sixty (60) days prior written notice of such termination.
TENANT'S RECORDS OF SHAREHOLDINGS
16.05 The Tenant shall, upon request of the Landlord, make available to the
Landlord from time to time for inspection or copying or both, all books and
records of the Tenant which, alone or with other data, show the applicability or
inapplicability of Section 16.04. If any shareholder of the Tenant shall, upon
request of the Landlord, fail or refuse to furnish to the Landlord any data
verified by the affidavit of such shareholder or other credible person, which
data, alone or with other data show the applicability of Section 16.04 then the
Landlord may terminate this Lease on sixty (60) days written notice.
RULES AND REGULATIONS
17.01 The Tenant and the Tenant's employees and all persons visiting and doing
business with the Tenant in the Leased Premises shall be bound by and shall
observe the Rules and Regulations attached to this Lease as Schedule 3 and any
further and other reasonable rules and regulations made hereafter by the
Landlord relating to the Building or to the Leased Premises of which notice in
writing shall be given to the Tenant and all such rules and regulations shall be
deemed to be incorporated into and form part of this Lease.
CHANGES TO RULES AND REGULATIONS
17.02 The Landlord shall have the right to make such other and further
reasonable rules and regulations as in its judgement may from time to time be
needed for the safety, security, care and cleanliness of the Building or Harbour
Centre and for the preservation of good order therein, and the same shall be
kept and observed by the Tenant, its employees and invitees.
10
USE OF LEASED PREMISES
18.01 The Leased Premises shall not be used other than for the purposes set out
in Section 7 of Schedule 2 and only for such purposes as comply with the terms
of this Lease and all applicable laws, by-laws, regulations or other
governmental ordinances from time to time in existence and the Tenant shall not
carry on or permit to be carried on in the Leased Premises any retail trade or
business.
INCREASE IN INSURANCE PREMIUMS
18.02 The Tenant agrees that it will not keep, use, sell or offer for sale in or
upon the Leased Premises any article which may be prohibited by any insurance
policy in force from time to time covering the Building. In the event that the
Tenant's occupancy or conduct of business in, or on the Leased Premises, whether
or not the Landlord has consented to the same, results in any increase in
premiums for the insurance carried from time to time by the Landlord in respect
of the Building, the Tenant shall pay any such increase in premiums as
additional rent within ten (10) days after bills for such additional premiums
shall be rendered by the Landlord. In determining whether increased premiums are
a result of the Tenant's use or occupancy of the Leased Premises a schedule
issued by the person computing the insurance rate on the Building showing the
various components of such rate shall be conclusive evidence of the several
items and charges which make up such rate. The Tenant shall promptly comply with
all reasonable requirements of the insurance authority or of any insurer now or
hereafter in effect relating to the Leased Premises.
TENANT'S INSURANCE
19.01
(a) The Tenant shall during any rent-free period and the entire Term
hereof, at its sole cost and expense, take out and keep in full
force and effect and in the names of the Tenant, the Landlord and
the mortgagees of the Landlord as their respective interests may
appear, the following insurance:
(i) Insurance upon property of every description and kind owned
by the Tenant or for which the Tenant is legally liable, or
installed by or on behalf of the Tenant (and which is
located within the Building), including without limitation
furniture, fittings, installations, alterations, additions,
partitions, fixtures and anything in the nature of a
leasehold improvement, in an amount not less than ninety
percent (90%) of the full replacement cost thereof, with
coverage against at least, the perils of fire and standard
extended coverage including sprinkler leakages (where
applicable), earthquake, flood and collapse. If there is a
dispute as to the amount which comprises full replacement
cost, the decision of the Landlord or the mortgagees of the
Landlord shall be conclusive;
(ii)
Business interruption insurance in such amount as will
reimburse the Tenant for direct or indirect loss of earnings
attributable to all perils commonly insured against by prudent
tenants or attributable to prevention of access to the Leased
Premises or to the Building as a result of such perils;
(iii)
Public liability and property damage insurance including
personal injury liability, contractual liability, non-owned
automobile liability and owners' and contractors' protective
insurance coverage with respect to the Leased Premises and the
Tenant's use of any part of the Building and which coverage
shall include the activities and operations conducted by the
Tenant and any other person on the Leased Premises and shall
not exclude water damage. Such policies shall be written on a
comprehensive basis with limits of not less than $5,000,000.00
for bodily injury to any one or more persons, or property
damage, and such higher limits as the Landlord or the
mortgagees of the Landlord may reasonably require from time to
time, and all such policies shall contain a severability of
interest clause and a cross liability clause;
(iv)
Tenant's legal liability insurance for the full replacement
cost of the Leased Premises, such coverage to include the
activities and operations conducted by the Tenant and any other
persons on the Leased Premises; and
11
(v) Any other form or forms of insurance as the Tenant or the
Landlord or the mortgagees of the Landlord may reasonably
require from time to time in form, in amounts and for insurance
risks against which a prudent tenant would protect itself.
(b) All policies required to be written on behalf of the Tenant pursuant
to subsections 19.01(a)(i) and 19.01(a)(ii) shall contain a waiver
of any subrogation rights which the Tenant's insurers may have
against the Landlord and against those for whom the Landlord is, in
law, responsible, whether any such damage is caused by the act,
omission or negligence of the Landlord or by those for whom the
Landlord is, in law, responsible.
(c) All policies shall be taken out with insurers acceptable to the
Landlord and in a form satisfactory from time to time to the
Landlord. The Tenant agrees that certificates of insurance or, if
required by the Landlord or the mortgagees of the Landlord,
certified copies of each such insurance policy and evidence of
all renewals thereof will be delivered to the Landlord as soon as
practicable after the placing or renewing of the required
insurance. All policies shall contain an undertaking by the
insurers to notify the Landlord and the mortgagees of the
Landlord in writing not less than thirty (30) days prior to any
material change, cancellation or other termination thereof.
(d) The Tenant covenants and agrees that in the event of damage or
destruction to the leasehold improvements in the Leased Premises
covered by insurance required to be taken out by the Tenant
pursuant to subsection 19.01(a)(i), the Tenant will use the
proceeds of such insurance for the purposes of repairing or
restoring such leasehold improvements. In the event of damage to
or destruction of the Building entitling the Landlord to
terminate this Lease pursuant to Sections 46.02 or 46.03 hereof,
then, if the Leased Premises have also been damaged, the Tenant
will pay to the Landlord all of its insurance proceeds relating
to the leasehold improvements in the Leased Premises and if the
Leased Premises have not been damaged, the Tenant will deliver to
the Landlord, in accordance with the provisions of this Lease,
the leasehold improvements and the Leased Premises.
CANCELLATION OF INSURANCE
20.01 If any insurance policy upon the Building or any part thereof, including
without limitation, the insurance referred to in Section 45.01, shall be
cancelled or shall be threatened by the insurer to be cancelled or the coverage
thereunder is reduced in any way by reason of the use or occupation of the
Leased Premises or any part thereof by the Tenant or by any assignee or
subtenant of the Tenant or by anyone permitted by the Tenant to be upon the
Leased Premises, the Landlord may, at its option, enter upon the Leased Premises
and attempt to remedy such condition and the Tenant shall upon demand pay the
cost thereof to the Landlord as additional rent. In the event that the Landlord
is unable to remedy such condition or elects not to attempt to remedy such
condition, the Landlord may re-enter the Leased Premises forthwith and thereupon
the provisions of Section 52.01 hereof shall apply, notwithstanding the
provisions of Section 49.01 hereof. The Landlord shall not be liable for any
damage or injury caused to any property of the Tenant or of others located on
the Leased Premises as a result of such entry.
OBSERVANCE OF LAW
21.01 The Tenant shall comply with all provisions of law including without
limitation, federal and provincial legislative enactments, building by-laws, and
any other governmental or municipal regulations which relate to the
partitioning, equipment, operation and use of the Leased Premises, and to the
making of any repairs, replacements, alterations, additions, changes,
substitutions or improvements of or to the Leased Premises. And 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 and obey all governmental and municipal regulations and other
requirements governing the conduct of any business conducted in the Leased
Premises. Notwithstanding the foregoing it shall be the Landlord's
responsibility to comply with federal and provincial legislative enactments,
building by-laws and any other governmental or municipal regulations which
relate to the Building insofar as they may require changes of a structural
nature in the Building, provided nevertheless that such changes shall be the
responsibility of the Tenant if they are changes or
12
additions required to be made in or to the Tenant's improvements or partitioning
(whether above or below the ceiling tile) whether such changes be considered
structural or not or if such changes are required by reason of the nature of the
use or improvements contemplated or made by the Tenant.
WASTE AND NUISANCE
22.01 The Tenant shall not do or suffer any waste or damage or disfiguration or
injury to the Leased Premises or the fixtures and equipment thereof and shall
not place therein any safe, heavy business machinery, computers, data processing
machines, or other heavy things without first obtaining the consent in writing
of the Landlord and, if requested by the Landlord, by the Landlord's Architect,
and shall not use or permit to be used any part of the Leased Premises for any
dangerous, noxious or offensive trade or business, and shall not cause or permit
any nuisance in, at, on or from the Leased Premises.
ENTRY BY LANDLORD
23.01 The Tenant shall permit the Landlord, its servants or agents to enter upon
the Leased Premises at any reasonable time and from time to time for the purpose
of inspecting and of making repairs, alterations or improvements to the Leased
Premises or to the Building, or for the purpose of having access to the
underfloor ducts, or to the access panels to mechanical shafts (which the Tenant
agrees not to obstruct), and the Tenant shall not be entitled to compensation
for any inconvenience, nuisance or discomfort occasioned thereby. The Landlord,
its servants or agents may at any time and from time to time enter upon the
Leased Premises for the purposes provided for in Section 20.01 hereof, and such
entry by the Landlord shall not be or be deemed to be re-entry. The Landlord
shall have the right to enter the Leased Premises in order to check, calibrate,
adjust and balance controls and other parts of the heating, ventilation and
climate control system during Normal Business Hours upon reasonable notice.
Provided that the Landlord shall proceed under this Section 23.01 in such manner
as to minimize interference with the Tenant's use and enjoyment of the Leased
Premises. Entry by the Landlord upon the Leased Premises or any part or parts
thereof from time to time pursuant to this Section 23.01 shall not be or be
deemed to be a re-entry.
INDEMNIFICATION OF LANDLORD
24.01 The Tenant shall indemnify the Landlord and save it harmless from and
against any and all loss (including loss of rentals payable by the Tenant
pursuant to this Lease), claims, actions, damages, liability and expense in
connection with loss of life, personal injury or damage to property arising from
any occurrence in, upon or at the Leased Premises, or the occupancy or use by
the Tenant of the Leased Premises or any part thereof, or occasioned wholly or
in part by any act or omission of the Tenant, its agents, contractors,
employees, servants, licensees, concessionaires or invitees or by anyone
permitted to be on the Leased Premises by the Tenant. In case the Landlord
shall, without fault on its part, be made a party to any litigation commenced by
or against the Tenant, then the Tenant shall protect and hold the Landlord
harmless and shall pay all costs, expenses and reasonable legal fees incurred or
paid by the Landlord in connection with such litigation.
EXHIBITING PREMISES
25.01 The Tenant shall permit the Landlord and its agents to exhibit the Leased
Premises to prospective tenants during Normal Business Hours of the last six (6)
months of the Term and to exhibit the Leased Premises at any time for the
purposes of the Landlord's own financing and refinancing and to exhibit the
Leased Premises to any prospective purchaser of the Landlord's interest in the
Building.
ALTERATIONS BY TENANT
26.01 The Tenant will not make, install or erect in or to the Leased Premises
any installations, alterations, additions, or partitions without submitting the
drawings and specifications therefor to the Landlord and obtaining the
Landlord's prior written consent in each instance, which consent shall not be
unreasonably withheld. The Tenant must obtain the Landlord's prior written
consent to any change or changes in such drawings or specifications submitted as
aforesaid and shall pay the cost to the Landlord of having its architects
examine such changes prior to proceeding with any work based on such drawings or
specifications. Such work shall be performed by contractors engaged by the
Tenant under written contract approved in writing by the Landlord and subject to
all reasonable conditions which the Landlord
13
may impose but the Landlord may at its option require that the Landlord's
contractors be engaged for any mechanical or electrical work or other leasehold
improvement. Any work performed by or for the Tenant shall be performed by
competent workmen whose labour union affiliations are not incompatible with
those of any workmen who may be employed in the Building or in Harbour Centre by
the Landlord, its contractors or subcontractors. The Tenant shall submit to the
Landlord's supervision over construction and promptly pay to the Landlord's or
the Tenant's subcontractors as the case maybe, when due, the cost of all such
work and of all materials, labour and services involved therein and of all
decorations and changes in the Building, its equipment or services, necessitated
thereby. The Tenant covenants that the Tenant will not suffer or permit any
Builders' or other liens for work, labour, services or materials ordered by the
Tenant or for the cost of which the Tenant may be in any way obligated or any
conditional sales agreements or chattel mortgages to attach to the Leased
Premises or to the Building or any part thereof and that whenever and so often
as any such liens or claims therefor or conditional sales agreements or notice
thereof or chattel mortgages shall be filed or registered the Tenant shall
within twenty (20) days after the Tenant has notice thereof procure the
discharge thereof by payment or by giving security or in such other manner as is
or may be required or permitted by law. The Tenant shall allow the Landlord to
post and keep posted on the Leased Premises any notice which the Landlord may
wish to post under the provisions of the Builders' Lien Act R.S.B.C. 1979 c. 40)
or any legislation which may amend or replace such Act or any similar
legislation. The Tenant shall, at its own cost and expense, take out or cause to
be taken out any additional insurance reasonably required by the Landlord to
protect the Landlord's and the Tenant's interest during the period of
alteration. The Tenant shall be responsible to obtain and pay for any building
permits and other permits.
ALTERATION OF BUILDING
26.02 The Landlord hereby reserves the right at any time and from time to time
to make changes in, additions to, subtractions from or rearrangements of the
Building including without limitation, all improvements at any time thereon, all
entrances thereto and exits therefrom, and to grant, modify and terminate
easements or other agreements pertaining to the use and maintenance of all or
parts of the Building.
ALTERATION OF PIPES, CONDUITS, ETC.
26.03 The Landlord shall have the right to use and make changes or additions to
the pipes, wires, conduits and ducts in the Leased Premises where necessary to
serve other premises in the Building but not in any way so as to interfere
materially with the use and enjoyment of the Leased Premises so caused. The
Tenant shall not unduly obstruct such pipes, conduits and ducts in the Leased
Premises so as to prevent reasonable access thereto.
ALTERATION OF LEASED PREMISES
26.04 Prior to the Commencement Date the Landlord may alter or relocate the
Leased Premises to the extent found necessary by the Landlord to accommodate
changes in construction design or facilities including major alterations and
relocations but provided always that the Leased Premises as altered or relocated
shall be in all material respects comparable to the Leased Premises as defined
herein.
REPLACEMENT OF GLASS
27.01 The Tenant shall pay the cost of replacement of any glass broken on the
Leased Premises including outside windows and doors of the perimeter of the
Leased Premises (including perimeter windows in the exterior walls) during the
continuance of this Lease, with as good quality and size and in the case of
perimeter windows, with glass of the same type and colour unless the glass shall
be broken by the Landlord, its servants, employees or agents on its behalf.
SIGNS AND ADVERTISING
28.01 The Tenant shall not paint, display, inscribe, place or affix any sign,
picture, advertisement, notice, lettering or direction on any part of the
outside of the Building or in the interior of the Leased Premises and visible
from the outside of the Building. The Landlord may prescribe a uniform pattern
of identification signs for tenants to be placed on the outside of the
entrance-way leading into the Leased Premises and other than such identification
signs, the Tenant shall not paint, display, inscribe, place or affix any sign,
picture, advertisement, notice, lettering or direction on the outside of the
Leased Premises for exterior view without the prior written consent of the
Landlord.
14
NAME OF BUILDING
29.01 The Tenant shall not refer to the Building by any name other than that
designated from time to time by the Landlord nor use such name for any purpose
other than that of the business address of the Tenant, provided that the Tenant
may use the municipal number of the Building assigned to it instead of the name
of the Building.
SUBORDINATION AND ATTORNMENT
30.01 This Lease is and shall be subject, subordinate and postponed to all
mortgages (including any deed of trust and mortgage securing bonds and all
indentures supplemental thereto) which may now or hereafter charge or affect the
Lands and to all renewals, modifications, consolidations, replacements and
extensions of such mortgages, to the intent that, without execution of any
document other than this Lease, such mortgages and all renewals, modifications,
consolidations, replacements and extensions thereof shall have priority over
this Lease notwithstanding the respective dates of execution or registration
thereof and notwithstanding the provisions of this Section 30.01 which follow.
Without limiting the generality of the foregoing, the Tenant agrees to execute
promptly any document in confirmation of such subordination, postponement and
priority which the Landlord may request and the Tenant hereby irrevocably
constitutes the Landlord the agent or attorney of the Tenant for the purpose of
executing any such document and of making application in the name of the Tenant
at any time and from time to time to register postponements of this Lease in
favour of any such mortgage or any renewal, modification, consolidation,
replacement or extension of any such mortgage in order to give effect to the
foregoing provision of this Section 30.01. In the event of any mortgagee of the
Landlord going into possession of the Lands or the Building, the Tenant shall
attorn to and become the Tenant of such mortgagee.
ACCEPTANCE OF PREMISES
31.01 The Tenant shall examine the Leased Premises before taking possession
hereunder and unless the Tenant furnishes the Landlord with a notice in writing
specifying any defect in the construction of the Leased Premises or otherwise
within ten (10) days after such taking of possession then the Tenant shall
conclusively be deemed to have examined the Leased Premises and to have found
them in order, and such taking of possession without giving the notice aforesaid
within such ten (10) days shall be conclusive evidence that at the Commencement
Date the Leased Premises were in good order and satisfactory condition, subject
only to latent defects, if any. The Tenant agrees that there is no promise,
representation or undertaking by or binding upon the Landlord with respect to
any alteration, remodelling or redecoration of or installation of equipment or
fixtures in the Leased Premises, except such, if any, as are expressly set forth
in this Lease.
CERTIFICATES
32.01 The Tenant agrees that it will at any time and from time to time upon not
less than ten (10) days prior notice execute and deliver to the Landlord a
statement in writing certifying that this Lease is unmodified and in full force
and effect (or, if modified, stating the modifications and that the same is in
full force and effect as modified), the amount of the annual rent and additional
rent then being paid hereunder, the dates to which the same, by instalments or
otherwise, have been paid, and whether or not there is any existing default on
the part of the Landlord of which the Tenant has notice.
QUIET ENJOYMENT
33.01 The Landlord covenants with the Tenant for quiet enjoyment provided the
Tenant is not in default under this Lease.
LANDLORD'S ADDITIONAL COVENANTS
34.01 The Landlord further covenants with the Tenant as follows:
TAXES AND RATES PAYABLE BY LANDLORD
35.01 The Landlord shall pay all Taxes including without limiting the generality
of the foregoing, water rates with respect to the Lands and the Building, except
such as the Tenant has herein covenanted to pay.
15
CLIMATE CONTROL BY LANDLORD
36.01 The Landlord shall provide climate control to the Leased Premises during
Normal Business Hours to maintain a temperature adequate for comfortable
occupancy, except during the making of repairs, alterations or improvements and
provided that the Landlord shall further have no responsibility or liability for
failure to supply climate control service when stopped as aforesaid or when
prevented from so doing by strikes or any cause beyond the Landlord's reasonable
control. Any changes or alterations in the system or ducts through which the
climate control system operates required because of any use of the Leased
Premises not in accordance with the design standards or arrangements of
partitioning prescribed by the Landlord, if such changes can be accommodated by
the Landlord's equipment, shall be made by the Tenant at its cost and expense
but only with the written consent of the Landlord first had and obtained, such
consent not to be unreasonably withheld, and in accordance with drawings and
specifications and by a contractor first approved in writing by the Landlord,
such approval not to be unreasonably withheld. If installation of partitions,
equipment or fixtures by the Tenant necessitates the rebalancing of the climate
control equipment in the Leased Premises the same will be performed by the
Landlord at the Tenant's expense. The Tenant acknowledges that one (1) year may
be required after the Tenant has fully occupied the Leased Premises in order to
adjust and balance the climate control systems.
ENERGY CONSERVATION BY TENANT
36.02 The Tenant covenants with the Landlord:
(a) to cooperate with the Landlord in the conservation of all forms of
energy in the Building, including without limitation the Leased
Premises;
(b) to comply with all laws, by-laws, regulations and orders relating to
the conservation of energy and affecting the Leased Premises or the
Building;
(c) at its own cost and expense to comply with all reasonable requests and
demands of the Landlord made with a view to such energy conservation;
and
(d) that any and all costs and expenses and any capital improvements paid
or incurred by the Landlord in complying with such laws, by-laws,
regulations and orders, so far as the same shall apply to or reasonably
be apportioned to the Building by the Landlord, shall be included in the
Landlord's costs and expenses of maintaining and operating the Building
for the purposes of Section 11.01.
The Landlord shall not be liable to the Tenant in any way for any loss, costs,
damages or expenses whether direct or consequential, paid, suffered or incurred
by the Tenant as a result of any reduction in the services provided by the
Landlord to the Tenant or to the Building as a result of the Landlord's
compliance with such laws, by-laws, regulations or orders.
ELEVATOR SERVICE
37.01 Subject to the Rules and Regulations referred to in Section 17.01, the
Landlord shall furnish elevator service during Normal Business Hours to the
Tenant and its employees and those doing business with the Tenant in common with
others except when repairs are being made, provided that the Tenant and such
employees and all other persons using the same shall do so at their own risk.
ELEVATOR SERVICE INTERRUPTIONS
38.01 There shall be no liability on the Landlord for any claim in respect of
any failure by the Landlord to provide elevator service during any power failure
or other cause beyond the control of the Landlord or by reason of the carrying
out of any repair, maintenance or replacement of elevators, nor shall there be,
consequent upon the foregoing, any repayment of or reduction in the rent
reserved hereby.
16
JANITORIAL SERVICES
39.01 When reasonably necessary from time to time the Landlord shall cause the
floors to be swept and windows to be cleaned and the desks, tables and other
furniture of the Tenant to be dusted all in keeping with a first class office
building but with the exception of the obligation to cause such work to be done,
the Landlord shall not be responsible for any act or omission or commission on
the part of the person or persons employed to perform such work and such work
shall be done at the Landlord's direction without interference by the Tenant,
his servants or employees.
WATER AND ELECTRICITY
40.01 The Landlord shall make available hot and cold water and, if available,
chilled water in reasonable quantity and shall make available electricity in
normal quantity provided that, if the Tenant's equipment requires utilities in
excess of normal quantities, facilities to supply excess quantities may be
provided by the Landlord at the sole expense of the Tenant subject to the
following conditions and provided that:
(a) the Landlord's Architect shall determine that such excess facilities
are so required by the Tenant's equipment;
(b) it is within the capabilities of the Landlord and the existing
structure to provide such excess utilities;
(c) the Landlord shall have the right to refuse to supply in the event that
the supplying of additional facilities shall in any way affect the
operation of, the aesthetics of or structure of the Building or in any
way reduce the efficiency of existing electricity, water or other
utility supplied to the Building or any part thereof;
(d) the supplying of additional facilities in order to make the required
utilities available to the Tenant shall be subject to compliance with
all provisions of law including, without limitation, federal and
provincial legislative enactments, building by-laws and other
governmental or municipal regulations which shall in any way relate to
the work necessary to be undertaken to make said utilities available;
and
(e) The Tenant shall pay to the Landlord, as additional rental from time to
time upon demand a charge as determined by the Landlord's Architect for
the supply of chilled water to the Leased Premises.
REPAIR AND MAINTENANCE
41.01 Subject to the other provisions of this Lease imposing obligations in this
respect upon the Tenant, the Landlord shall repair, replace and maintain the
external and structural parts of the Building which do not comprise a part of
the Leased Premises and are not leased to others, janitor and equipment closets
and shafts within the Leased Premises designated by the Landlord for use by it
in connection with the operation and maintenance of the Building, and shall
perform such repairs, replacements and maintenance with reasonable dispatch, in
a good and workmanlike manner, but the Landlord shall not be liable for any
damages, direct, or indirect or consequential, or for damages for personal
discomfort, illness or inconvenience of the Tenant, or the Tenant's servants,
clerks, employees, invitees or other persons by reason of failure of such
equipment, facilities or systems or reasonable delays in the performance of such
repairs, replacements and maintenance, unless caused by the deliberate act or
omission, or the negligence of the Landlord, its servants, agents or employees.
TRADE FIXTURES
42.01 The Tenant may install its usual trade fixtures in the usual manner,
provided such installation does not damage the structure of the Leased Premises
or the Building and provided further that the Tenant shall have submitted
detailed plans and specifications for such trade fixtures to the Landlord and
obtained its prior written consent thereto which consent shall not be
unreasonably withheld. Only new and unused trade fixtures may be installed by
the Tenant. The Tenant will not sell, dispose of or remove any of its fixtures,
goods or chattels from or out of the Leased Premises during the Term without the
consent of the Landlord, unless the Tenant is substituting new fixtures, goods
or chattels of equal or greater value or is bona fide disposing of individual
items which have become excess for the Tenant's purposes; and the Tenant will
not permit its fixtures, goods and chattels (or any of them) to become subject
to any lien, mortgage, charge or encumbrance.
17
REMOVAL OF TRADE FIXTURES
42.02 All trade fixtures installed by the Tenant in the Leased Premises shall
remain the property of the Tenant and shall be removed at the expiration of the
Term, or other termination thereof, provided the Tenant shall promptly repair,
at its expense, any damage to the Leased Premises caused by any such removal,
and provided further, that the Tenant shall not at such time be in default under
any covenant or agreement contained herein; and if in default, the Landlord
shall have a lien on such fixtures and apparatus as security against loss or
damage resulting from any such default by the Tenant and said fixtures and
apparatus shall not be removed by the Tenant until such default is cured, unless
otherwise directed by the Landlord.
FIXTURES
43.01 Provided further, any or all installations, alterations, additions,
partitions and fixtures other than trade fixtures in or upon the Leased
Premises, whether placed there by the Tenant or the Landlord or a previous
occupant of the Leased Premises, shall, immediately upon such placement, become
and shall thereafter remain the property of the Landlord without compensation
therefor to the Tenant. Notwithstanding anything herein contained, the Landlord
shall be under no obligation to repair, maintain, replace or insure such
installations, alterations, additions, partitions and fixtures or anything in
the nature of a leasehold improvement made or installed by or on behalf of the
Tenant or a previous occupant of the Leased Premises. The Landlord may elect
that any or all installations made or installed by or on behalf of the Tenant
hereunder or under the provisions of any previous lease of the Leased Premises
to the Tenant to whom this Lease is granted be removed at the expiry or earlier
termination of the Term and it shall be the Tenant's obligation to restore at
its expense the Leased Premises to the condition they were in previous to such
alterations, installations, partitions and fixtures.
TIME FOR REPAIR BY LANDLORD
44.01 If any elevator of the Building or any of the boilers, engines, pipes,
climate control equipment or other apparatus or any of them used for the purpose
of climate control or operating any elevator, or if the water pipes, drainage
pipes, electric lighting or other equipment of the Building get out of repair or
become damaged or destroyed the Landlord shall have a reasonable time in which
to make such repairs or replacements as may be reasonably required for the
resumption of those services to the Leased Premises which it has by this Lease
expressly agreed to provide and the Tenant shall not be entitled to any
compensation or damages therefor. Should any of such equipment of the Building
or elevators become impaired, damaged or destroyed through the deliberate act or
omission, or the negligence of the Tenant or its employees or through it or them
making use of or permitting others to make use of improper paper in the water
closets or in any other manner or way stopping up or injuring such climate
control equipment, elevators, water pipes, drainage pipes, electric lighting or
other equipment, the expense of the necessary repair shall be borne by the
Tenant who shall pay the same to the Landlord upon demand as additional rent.
Nothing in this Section shall, however, obligate the Landlord to provide any
services to the Leased Premises or to make any repairs not herein specifically
required to be provided or made by the Landlord.
LANDLORD'S INSURANCE
45.01 The Landlord covenants and agrees that throughout the Term it will insure
the Building (excluding foundations and excavations) and the machinery, boilers
and equipment contained therein owned by the Landlord (excluding any property
with respect to which the Tenant or other tenants are obliged to insure pursuant
to the provisions of Section 19.01 hereof or pursuant to the corresponding
provisions of their respective leases) against damage by fire and extended
perils coverage in such reasonable amounts as would be carried by a prudent
owner of a similar property. The Landlord will also, throughout the Term, carry
public liability and property damage insurance with respect to the operation of
the Building in reasonable amounts as would be carried by a prudent owner of a
similar property. The Landlord may, but shall not be obliged to, take out and
carry any other form or forms of insurance as it or the mortgagees of the
Landlord may reasonably determine advisable. Notwithstanding any contribution by
the Tenant to the cost of insurance premiums, as provided herein, the Tenant
acknowledges that it has no right to receive any proceeds from any such
insurance policies carried by the Landlord.
18
DAMAGE - ABATEMENT OF RENT
46.01 If the Leased Premises or Building are destroyed or damaged to such an
extent that the Leased Premises are totally unfit for occupancy or if reasonable
access thereto shall be impossible, Rent shall abate until the Leased Premises
are repaired or rebuilt. If the Leased Premises are damaged and the damage is
such that the Leased Premises can be partially used, then until such damage
shall have been repaired, Rent shall abate while repairs are in progress by the
same proportion as the area of the Leased Premises rendered unfit for occupancy
is of the Tenant's Floor Area and if the damage or destruction arises from or
out of a casualty against which the Landlord is fully insured, the Landlord
agrees that it will, with reasonable diligence, repair the leased Premises
unless the Tenant is obliged to repair under the terms hereof, or unless this
Lease is terminated pursuant to the provisions of Sections 46.02 or 46.03. The
obligation of the Landlord to repair or rebuild pursuant to this Section 46.01
is conditioned upon the Landlord obtaining all necessary permits and other
approvals of authorities required for such repair or rebuilding.
DAMAGE TO LEASED PREMISES - TERMINATION
46.02 If the Leased Premises are damaged or destroyed by any cause whatsoever or
reasonable access thereto shall be impossible, and if, in the opinion of the
Landlord reasonably arrived at, the Leased Premises cannot be rebuilt or made
fit for the purposes of the Tenant or reasonable access provided (on a temporary
or permanent basis) within ninety (90) days of the damage or destruction, the
Landlord, instead of rebuilding or making the Leased Premises fit for the
Tenant, or providing reasonable access may at its option terminate this Lease by
giving to the Tenant, within thirty (30) days after such damage or destruction,
notice of termination, and thereupon Rent and any other payments for which the
Tenant is liable under this lease shall be apportioned and paid to the date of
such damage and the Tenant shall immediately deliver up possession of the Leased
Premises to the Landlord.
DAMAGE TO BUILDING - TERMINATION
46.03 Irrespective of whether the Leased Premises are damaged or destroyed or
reasonable access made impossible, in the event that fifty percent (50%) or more
of the rentable area of the Building or twenty percent (20%) of the rentable
area of the whole of Harbour Centre is damaged or destroyed by any cause
whatsoever, and if, in the opinion of the Landlord reasonably arrived at, the
said rentable area or areas cannot be rebuilt or made fit for the purposes of
the tenants of such space within one hundred and eighty (180) days of the damage
or destruction, the Landlord may at its option terminate this Lease by giving to
the Tenant, within thirty (30) days after such damage or destruction, notice of
termination requiring vacant possession of the Leased Premises sixty (60) days
after delivery of the notice of termination and thereupon Rent and any other
payments for which the Tenant is liable under this Lease shall be apportioned
and paid to the date on which vacant possession is required and the Tenant shall
deliver up possession of the Leased Premises to the Landlord in accordance with
such notice of termination.
LOSS AND DAMAGE
47.01 The Landlord shall not be liable or responsible in any way:
(a) for any death or injury arising from or out of any occurrence in, upon
or at the Building or for damage to property of the Tenant or others
located on the Leased Premises, nor shall it be responsible in the event
of damage to any property of the Tenant or others from any cause
whatsoever, whether or not such damage, loss, injury or death results
from the negligence of the Landlord, its agents, servants or employees
or others for whom it may be responsible. Without limiting the
generality of the foregoing, the Landlord shall not be liable for any
injury or damage to persons or property resulting from fire, explosion,
falling plaster, steam, gas, electricity, water, rain, snow or leaks
from any part of the Leased Premises or from the pipes, appliances, or
plumbing works, roof, street, or subsurface of any floor or ceiling or
from any other place or because of dampness or climatic conditions or
from any other cause of whatsoever nature. The Landlord shall not be
liable for any damage whatsoever caused by any other tenant or persons
in the Building, or by an occupant of adjacent property thereto, or the
public, or construction of any private, public or quasi-public work. All
property of the Tenant kept or stored on the Leased Premises shall be so
kept or stored at the risk of the Tenant only and the Tenant shall
indemnify the Landlord in the event of any claims arising out of damages
to the same, including any subrogation claim by the Tenant's insurers;
19
(b) for any act or omission (including theft, malfeasance or negligence) on
the part of any agent, contractor or person from time to time employed
by it to perform janitor services or security services, in or about the
Leased Premises or the Building; or
(c) for loss or damage however caused, to money, securities, negotiable
instruments, papers or other valuables of or held by the Tenant.
DELAYS
48.01 Whenever and to the extent that the Landlord shall be unable to fulfil, or
shall be delayed or restricted in the fulfilment of any obligation hereunder in
respect of the supply or provision of any service or utility or the doing of any
work or the making of any repairs by reason of being unable to obtain the
material, goods, equipment, service, utility or labour required to enable it to
fulfil such obligation or by reason of any statute, law or Order-in-Council or
any regulation or order passed or made pursuant thereto or by reason of the
order or direction of any administrator, controller or board, or any
governmental department or officer or other authority, or by reason of not being
able to obtain any permission or authority required thereby, or by reason of any
other cause beyond its control whether of the foregoing character or not, the
Landlord shall be entitled to extend the time for fulfilment of such obligation
by a time equal to the duration of such delay or restriction, and the Tenant
shall not be entitled to compensation for any inconvenience, nuisance or
discomfort thereby occasioned, and shall not be entitled to cancel this Lease.
DEFAULT
49.01 If and whenever:
(a) the Rent hereby reserved, or any part thereof, is not paid when due,
whether lawfully demanded or not, or there is non-payment of any other
amounts which the Tenant is obligated to pay under any provisions
hereof, and such default shall continue after seven (7) days notice by
the Landlord requiring the Tenant to rectify the same; or
(b) the Term hereby granted, or any goods, chattels or equipment of the
Tenant, shall be taken or exigible in execution or in attachment or if a
writ of execution shall issue against the Tenant; or
(c) the Tenant or the Co-Covenantor, if any, shall become insolvent or
commit an act of bankruptcy or become bankrupt or take the benefit of
any Act that may be in force for bankrupt or insolvent debtors or become
involved in voluntary or involuntary winding-up proceedings or if a
receiver shall be appointed for the business, property, affairs or
revenues of the Tenant or the Co-Covenantor, if any; or
(d) the Tenant shall make a bulk sale of its goods or move or commence,
attempt or threaten to move its goods, chattels and equipment out of the
Leased Premises (other than in the routine course of its business) or
shall cease to conduct business from the Leased Premises; or
(e) the Tenant shall not observe, perform and keep each and every of the
covenants, agreements, provisions, stipulations and conditions herein
contained to be observed, performed and kept by the Tenant and shall
persist in such failure after fifteen (15) days notice by the Landlord
requiring that the Tenant remedy, correct, desist or comply or in the
case of any such breach which reasonably would require more than fifteen
(15) days to rectify unless the Tenant shall commence rectification
within the fifteen day notice period and thereafter promptly and
diligently and continuously proceed with the rectification of the
breach; or
(f) the Demised Premises shall be vacated or remain unoccupied for ten
(10) days;
then and in every case the then current and the next ensuing three (3) months
rent, and the additional rental for the current year (to be reckoned at rates
estimated by the Landlord acting reasonably) shall immediately become due and
payable and the Landlord may re-enter and take possession of the Leased
Premises, or any part thereof in the name of the whole, and have again,
repossess and enjoy the Leased Premises in its former estate, anything herein to
the contrary notwithstanding, as though the Tenant were holding over after the
expiration of the Term, and the Term shall, at the option of the Landlord,
forthwith become forfeited and determined and accelerated Rent shall be
recoverable by the Landlord as if it were rent in
20
arrears, but the Tenant shall remain liable under this Lease. If more than one
person shall constitute the Co-Covenantor, the word "Co-Covenantor", where used
in this Section 49.01, shall be construed as referring separately to each and
every person constituting the Co-Covenantor.
COSTS
50.01 The Tenant shall pay as additional rent and indemnify the Landlord against
all costs and charges lawfully and reasonably incurred, including legal expenses
actually incurred in enforcing payment of Rent and all other charges payable by
the Tenant hereunder and in obtaining possession of the Leased Premises after
default of the Tenant or upon expiration or earlier termination of this Lease,
or in enforcing any covenant, proviso or agreement of the Tenant herein
contained.
DISTRESS
51.01 The Tenant waives and renounces the benefit of any present or future
statute taking away or limiting the Landlord's right of distress, and covenants
and agrees that notwithstanding any such statute none of the goods and chattels
of the Tenant on the Leased Premises at any time during the Term shall be exempt
from levy by distress for rent in arrears.
RIGHT OF ENTRY
52.01 The Tenant further covenants and agrees that on the Landlord's becoming
entitled to re-enter upon the Leased Premises under any of the provisions of
this Lease the Landlord, in addition to all other rights, shall have the right
to enter the Leased Premises as the agent of the Tenant either by force or
otherwise, without being liable for any prosecution therefor and to relet the
Leased Premises as the agent of the Tenant, and to receive the Rent therefor,
and as agent of the Tenant to take possession of any furniture or other property
on the Leased Premises and to sell the same together with any trade fixtures on
which the Landlord has a lien pursuant to Section 42.02 at public or private
sale and either in bulk or by individual item without notice and to apply the
proceeds of such sale and any Rent derived from reletting the Leased Premises,
after deducting its costs of conducting such sale and its costs of reletting, on
account of the Rent under this Lease, and the Tenant shall be liable to the
Landlord for the deficiency, if any.
RIGHT OF TERMINATION
53.01 The Tenant further covenants and agrees that on the Landlord's becoming
entitled to re-enter upon the Leased Premises under any of the provisions of
this Lease, the Landlord in addition to all other rights, shall have the right
to determine this Lease and the Term forthwith by giving notice in writing to
the Tenant and thereupon Rent shall be computed, apportioned and paid in full to
the date of such determination of this Lease, and any other payments for which
the Tenant is liable under this Lease shall be paid and the Tenant shall
forthwith deliver up possession of the Leased Premises to the Landlord and the
Landlord may re-enter and take possession of the same.
PAYMENT OF RENT AND PERFORMANCE OF COVENANTS
54.01 The Tenant shall pay to the Landlord in the manner specified herein,
without any deduction, set-off or abatement, all Rent hereby reserved and all
amounts which are collectible by the Landlord as rent, and in the event the
Tenant shall fail to pay any such amount when due and payable hereunder such
amount shall bear interest payable by the Tenant as additional rent at the rate
of twenty-four-percent (24%) per annum from the date upon which the same was due
until actual payment thereof. The Tenant shall observe and perform all terms and
provisions of this Lease on its part to be observed and performed and shall not
do or suffer to be done anything contrary to any term or provision hereof.
ADDITIONAL RIGHTS AND REMEDIES OF LANDLORD ON DEFAULT
55.01 In addition to all rights and remedies of the Landlord available to it in
the event of any default hereunder by the Tenant either by any other provision
of this Lease or by statute or the general law the Landlord:
(a) shall have the right at all times to remedy or attempt to remedy
any default of the Tenant and in so doing may make any payments
due or alleged to be due by the Tenant to third parties and may
enter upon the Leased Premises to do any work or other things
therein, and in such event all costs and expenses of the
Landlord in remedying or attempting to remedy such default shall
be payable by the Tenant to the Landlord forthwith upon demand;
and
(b) shall have the same rights and remedies in the event of any
non-payment by the Tenant of any amounts payable by the Tenant
under any provision of this Lease as in the case of a non-payment
of Rent.
21
NON-WAIVER
56.01 No condoning, excusing or overlooking by the Landlord or any default,
breach or non-observance by the Tenant at any time or times in respect of any
covenants, provisos or conditions herein contained shall operate as a waiver of
the Landlord's rights hereunder in respect of any continuing or subsequent
default, breach or non-observance or so as to defeat or affect in any way the
rights of the Landlord in respect of any such continuing or subsequent default
or breach, and no waiver shall be inferred from or implied by anything done or
omitted by the Landlord save only by express waiver in writing. All rights and
remedies of the Landlord contained in this Lease shall be cumulative and not
alternative.
OVERHOLDING BY TENANT
57.01 If the Tenant continues to occupy the Leased Premises after the expiration
of this Lease with or without the consent of the Landlord, and without any
further written agreement, the Tenant shall be a monthly tenant at double the
rent herein reserved pro rated in relation to the periods of time during which
the Tenant is an overholding tenant, and on the terms and conditions herein set
out except as to length of tenancy.
DIRECTORY BOARD
58.01 The Tenant shall be entitled to have one name inserted in the Directory
Board of the Building, and the Landlord shall design the style of such
identification, and the Directory Board shall be located in an area designated
by the Landlord in the main lobby.
ACCRUAL OF RENT
59.01 Rent shall be considered as annual and accruing from day to day, and where
it becomes necessary for any reason to calculate such Rent for an irregular
period of less than one year an appropriate apportionment and adjustment shall
be made. Where the calculation of any additional rental is not made until after
the termination of this Lease, the obligation of the Tenant to pay such
additional rental shall survive the termination of this Lease and such amounts
shall be payable by the Tenant upon demand by the Landlord.
SALE BY LANDLORD
60.01 In the event of a sale, transfer or lease by the Landlord of the Building
or a portion thereof containing the Leased Premises or the assignment by the
Landlord of this Lease or any interest of the Landlord hereunder, the Landlord
shall, without further written agreement, to the extent that such purchaser,
transferee or lessee has become bound by the covenants and obligations of the
Landlord hereunder, be freed, released and relieved of all liability or
obligations under this Lease.
NOTICE
61.01 Any notice, request, statement or other writing pursuant to this Lease
shall be deemed to have been given if sent by registered prepaid post as
follows:
To the Landlord:
Harbour Centre Complex Limited
P.O. Box 12050 - 555 West Hastings Street
Vancouver, British Columbia
V6B 4N4
or such other address as the Landlord shall notify the Tenant in writing at
any time or from time to time;
22
To The Tenant:
at the Leased Premises, if delivered, or if
sent by registered prepaid post at the address
set out in Section 8 of Schedule 2;
and such notice shall be deemed to have been received by the Landlord or the
Tenant, as the case may be, on the second business day after the date on which
it shall have been so mailed except in the event of labour disputes or other
disruptions affecting postal service occurring prior to the deemed date of
receipt thereof in which case notice will not be deemed to have been received
until actually received.
NOTICE BY DELIVERY
61.02 Notice shall also be sufficiently given if and when the same shall be
delivered, in the case of notice to Landlord, to an executive officer of the
Landlord, and in the case of notice to the Tenant, to him personally or to an
executive officer of the Tenant if the Tenant is a corporation. Such notice, if
delivered, shall be conclusively deemed to have been given and received at the
time of such delivery. If in this Lease two or more persons are named as Tenant,
or are obligated to fulfil the obligations of the Tenant hereunder, such notice
shall also be sufficiently given if and when the same shall be delivered
personally to any one of such persons. Provided that either party may, by notice
to the other, from time to time designate another address in Canada to which
notices mailed more than ten (10) days thereafter shall be addressed.
LAWS OF PROVINCE APPLY
62.01 This Lease shall be deemed to have been made in and shall be construed in
accordance with the laws of the Province of British Columbia. All matters and
disputes, whether sounding in contract or in tort relating to the validity,
construction, interpretation, breach or enforcement of this Lease shall be
determined before the courts of the Province of British Columbia and the Tenant
thereby attorns to the jurisdiction of the courts of the Province of British
Columbia in all such matters and disputes.
PAYMENT IN CANADIAN FUNDS
63.01 The rentals reserved hereunder and all other amounts required to be paid
or payable under the provisions of this Lease shall be paid in lawful money of
Canada at par at Vancouver, British Columbia.
LEASE ENTIRE AGREEMENT
64.01 The Tenant acknowledges that there are no covenants, representations,
warranties, agreements or conditions expressed or implied, collateral or
otherwise forming part of or in any way affecting or relating to this Lease or
the Leased Premises save as expressly set out in this Lease and that this Lease,
including the Schedules attached and the Rules and Regulations, constitutes the
entire agreement between the Landlord and the Tenant and may not be modified
except as herein explicitly provided or except by subsequent agreement in
writing of equal formality hereto executed by the Landlord and the Tenant.
Notwithstanding the foregoing the Tenant shall remain liable to pay for those
improvements in the Leased Premises which have been made by the Landlord for or
on behalf of the Tenant and which are in excess of the work otherwise required
to be done by the Landlord and the Landlord's fee for supervision and overhead,
as to all of which reference may be made to the Offer to Lease made by the
Tenant and accepted by the Landlord to which the form of this Lease was a
Schedule.
BINDING EFFECT
65.01 Subject to the provisions of this Lease respecting assignment by the
Tenant, this Lease shall enure to the benefit of and be binding upon the parties
hereto and their respective successors and assigns.
TIME OF THE ESSENCE
66.01 Time shall be of the essence in all respects hereunder.
23
REGISTRATION
67.01 The Tenant covenants and agrees that the Landlord shall not be obliged to
execute or deliver this Lease in form registrable under the Land Title Act or
any other statute in pari materia therewith that the Tenant will not register or
record this Lease against the title to the Lands.
TERMINATION UPON REGISTRATION
68.01 If the Tenant or any person claiming through or under him, whether by
descent, purchase or otherwise, shall apply to have this Lease registered
against the title to the Leased Premises or the Lands or shall apply to file or
register any notice of or caveat with respect to this Lease or the interest of
the Tenant arising hereunder against such title or shall institute any
proceedings to effect any such registration, the Landlord may at any time
thereafter terminate this Lease and the Term upon giving written notice of such
termination to the Tenant.
OPTION TO RENEW
69.01 The Landlord grants to the Tenant an option to renew this Lease on the
terms and conditions set out in Schedule 4 hereto.
IN WITNESS WHEREOF the parties hereto have executed this Lease under seal
as of the day and year first above written.
THE CORPORATE SEAL of HARBOUR CENTRE )
COMPLEX LIMITED was hereunto affixed in the )
presence of: )
)
/s/ Not Legible )
- -------------------------------------------------)
Authorized Signatory: )
)
/s/ Jon Hall ) c/s
- -------------------------------------------------)
Authorized Signatory: Jon Hall, General Manager )
THE COMMON OR CORPORATE SEAL OF )
E-XACT TRANSACTIONS LTD. )
- -------------------------------------------------)
was hereunto affixed in the presence of: )
)
/s/ Peter Fahlman )
- -------------------------------------------------)
Authorized Signatory )
)
Peter Fahlman, President )
- -------------------------------------------------)
(Print Name and Title) )
) c/s
)
- -------------------------------------------------)
Authorized Signatory )
)
- -------------------------------------------------)
(Print Name and Title) )
(OR, IN THE ABSENCE OF A COMMON OR CORPORATE SEAL)
IN WITNESS WHEREOF the Tenant has executed this Lease by it's duly authorized
officers.
E-XACT TRANSACTIONS LTD.
Per:
/s/ Peter Fahlman
- -------------------------------------------------
Authorized Signatory
Name: Peter Fahlman
--------------------------------------------
Title: President
-------------------------------------------
Per:
/s/ Robert Roker
- -------------------------------------------------
Authorized Signatory
Name: Robert Roker
--------------------------------------------
Title: Secretary
-------------------------------------------
24
SCHEDULE 1
PLAN OF LEASED PREMISES
The purpose of this plan is to identify the approximate location of the Leased
Premises in the Building. The Landlord reserves the right at any time to
relocate, rearrange or alter the buildings and structures, other premises,
Common Areas and Facilities and the Leased Premises from that shown on this
floor plan.
SCHEDULE 2
To Lease dated April 22 , 1999 made between Harbour Centre Complex Limited, as
Landlord and E-xact Transactions Ltd., as Tenant.
SUMMARY OF TERMS
1. The Commencement Date shall be NOVEMBER 15, 1998.
2. The Tenant's Floor Area determined in accordance with Section 1.05 of the
Lease is approximately 1,320 square feet (122.63 square metres).
3. The Term of the Lease is TWO (2) years and TEN (10) months and -0- days,
from and including the Commencement Date and ending on the 14TH day of
SEPTEMBER, 2001. .
4. The amount of annual rent payable shall be:
Year 1 - NOVEMBER 15, 1998 TO SEPTEMBER 14, 2001
$21,120.00PER ANNUM ($16.00 PER SQUARE FOOT)
5. The amount of monthly rent payable shall be:
Year 1 - NOVEMBER 15, 1998 TO SEPTEMBER 14, 2001
$1,760.00 PER MONTH
6. The amount of estimated additional rent payable by the Tenant at the
Commencement Date is SIXTEEN THOUSAND SIX HUNDRED FIFTY EIGHT DOLLARS AND
FORTY CENTS ($16,658.40) ($16,658.40) per annum payable monthly in
advance.
7. The Leased Premises shall be used solely for:
A GENERAL BUSINESS OFFICE ONLY.
8. The Tenant's address for notice is:
E-XACT TRANSACTIONS
P.O. BOX 12088
555 WEST HASTINGS ST.
V6B 4N5
9. The Tenant has paid a deposit of SIX THOUSAND TWO HUNDRED NINETY SIX
DOLLARS AND FORTY CENTS ($6,296.40) to be credited to the Rent for the
last two (2) months of the Term.
SCHEDULE 3
RULES AND REGULATIONS
1. The Tenant shall not place or permit to be placed or left in or upon any
part of the Building outside the Leased Premises, or in or upon part of
the Building of which the Leased premises form a part, any debris or
refuse. The cost of removal or cleaning of debris and refuse shall be
charged to the Tenant.
2. The Landlord shall permit the Tenant and the Tenant's employees and all
persons lawfully requiring communication with them to have the use during
Normal Business Hours in common with others entitled thereto of the main
entrance and the stairways, corridors, elevators or other mechanical means
of access leading to the Leased Premises. At times other than during
Normal Business Hours the Tenant and the employees of the Tenant and
persons lawfully requiring communication with the Tenant shall have access
to the Building and to the Leased Premises only in accordance with the
Rules and Regulations.
3. The Landlord shall permit the Tenant and the employees of the Tenant in
common with others entitled thereto, to use the washrooms on the floor of
the Building on which the Leased Premises are situated or, in lieu
thereof, those washrooms designated by the Landlord, save and except when
the general water supply may be turned off from the public main or at such
other times when repair and maintenance undertaken by the Landlord shall
necessitate the non-use of the facilities.
4. The Tenant shall not permit any cooking in the Leased Premises without the
written consent of the Landlord.
5. The sidewalks, entries, passages, escalators, elevators and staircases
shall not be obstructed or used by the Tenant, its agents, servants,
contractors, invitees or employees for any purpose other than ingress to
and egress from the offices. The Landlord reserves entire control of all
parts of the Building employed for the common benefit of the tenants and
without restricting the generality of the foregoing, the sidewalks,
entries, corridors and passages not within the Leased Premises, washrooms,
lavatories, air-conditioning closets, fan rooms, janitor's closets,
electrical closets and other closets, stairs, escalators, elevator shafts,
flues, stacks, pipe shafts and ducts and shall have the right to place
such signs and appliances therein as it may deem advisable, provided that
ingress to and egress from the Leased Premises is not unduly impaired
thereby.
6. The Tenant, its agents, servants, contractors, invitees or employees,
shall not bring in or take out, position, construct, install or move
any safe, business machinery or other heavy equipment or anything
liable to injure or destroy any part of the Building without first
obtaining the consent in writing of the Landlord. In giving such
consent, the Landlord shall have the right in its sole discretion to
prescribe the weight permit-platforms to distribute the weight
thereof. All damage done to the Building by moving or using any such
heavy equipment or other office equipment or furniture shall be
repaired at the expense of the Tenant. The moving of all heavy
equipment or other office equipment or furniture shall occur only by
prior arrangement with the Landlord. No Tenant shall employ anyone to
do its moving in the Building other than the staff of the Building
unless permission to employ someone else is given by the Landlord and
the reasonable cost of such moving shall be paid by the Tenant. Safes
and other heavy office equipment and machinery shall be moved through
the halls and corridors only upon steel bearing plates. No freight or
bulky matter of any description will be received into the Building or
carried in the elevators except during hours approved by the Landlord
and in the elevator designated by the Landlord for such use.
7. The Tenant shall not place or cause to be placed any additional locks upon
any of the Leased Premises without the approval of the Landlord and
subject to any conditions imposed by the Landlord. Two keys shall be
supplied by the Landlord for each entrance door to the Leased Premises
and all locks shall be standard to permit access to the Landlord's
master key. If additional keys are requested, they must be paid for by
the Tenant. No one, other than the Landlord's staff, will have keys to
the outside entrance doors of the Building.
8. The water closets and other water apparatus shall not be used for any
purpose other than those for which they were constructed, and no
sweepings, rubbish, rags, ashes or other substances shall be thrown
therein. Any damage resulting from misuse shall be borne by the Tenant
by whom or by whose agents, servants, or employees the same is caused.
The Tenant shall not let water run unless it is in actual use, and
shall not deface or mark any part of the Building, or drive nails,
spikes, hooks, or screws into the walls or woodwork of the Building.
9. The Tenant shall not do or permit anything to be done in the Leased
Premises, or bring or keep anything therein which will in any way
increase the risk of fire or the rate of fire insurance on the
Building or Harbour Centre or on property kept therein, or obstruct or
interfere with the rights of other tenants or in any way injure or
annoy them or the Landlord, or violate or act at variance with the
laws relating to fires or with the regulations of the Fire Department,
or with the conditions of any insurance upon said Building or any part
thereof, or violate or act in conflict with any of the rules and
ordinances of the Board of Health or with any statute or municipal
by-law.
10. No one shall use the Leased Premises for sleeping apartments or
residential purposes, or for the storage of personal effects or articles
other than those required for business purposes.
11. The Tenant shall permit window cleaners to clean the windows of the Leased
Premises during Normal Business Hours.
12. Canvassing, soliciting and peddling in or about the Building and in the
parking area are prohibited.
13. The Tenant shall not receive or ship articles of any kind except through
facilities, and designated doors and at hours designated by the
Landlord under the supervision of the Landlord.
14. It shall be the duty of the respective tenants to assist and cooperate
with the Landlord in preventing injury to the premises demised to them
respectively.
15. No inflammable oils or other inflammable, dangerous or explosive materials
save those approved in writing by the Landlord's insurers shall be kept or
permitted to be kept in the Leased Premises.
16. No bicycles or other vehicles shall be brought within the Building without
the consent of the Landlord.
17. No animals or birds shall be brought into the Building without the consent
of the Landlord.
18. The Tenant shall not install or permit the installation or use of any
machine dispensing goods for sale in the Leased Premises or the
Building or permit the delivery of any food or beverages to the Leased
Premises without the approval of the Landlord or in contravention of
any regulations fixed or to be fixed by the Landlord. Only persons
authorized by the Landlord shall be permitted to deliver or to use the
elevators in the Building for the purpose of delivering food or
beverages to the Leased Premises.
19. If the Tenant desires telegraphic or telephonic connections, the Landlord
will direct the electricians as to where and how the wires are to be
introduced, and without such directions no boring or cutting for wires
will be permitted. No gas pipe or electric wire will be permitted which
has not been ordered or authorized by the Landlord. No outside radio or
television aerials shall be allowed on the Leased Premises without
authorization in writing by the Landlord.
20. The Tenant shall not cover or obstruct any of the skylights and windows
that reflect or admit light into any part of the Building except for the
proper use of approved blinds and drapes.
21. Any hand trucks, carry-alls, or similar appliances used in the Building
with the consent of the Landlord shall be equipped with rubber tires,
slide guards and such other safeguards as the Landlord shall require.
22. The Tenant shall not permit undue accumulations of garbage, trash, rubbish
or other refuse within or without the Leased Premises or cause or permit
noise, vibrations or objectionable odours to emanate or be dispelled from
the Leased Premises.
23. The Tenant shall not place or maintain any supplies or other articles in
any vestibule or entry of the Leased Premises, on the hallways adjacent
thereto or elsewhere on the exterior of the Leased Premises or the
Building.
24. The Tenant agrees to the foregoing Rules and Regulations, which are hereby
made a part of this Lease, and each of them, and agrees that for such
persistent infraction of them, or any of them, as may in the opinion
of the Landlord be calculated to annoy or disturb the quiet enjoyment
of any other tenant, or for gross misconduct upon the part of the
Tenant, or any one under it, the Landlord may declare a forfeiture and
cancellation of the Lease and may demand possession of the Leased
Premises upon one (1) week's notice.
25. In order to ensure efficient operation of the air-conditioning system, no
window shades, curtains, blinds, or screens other than those prescribed by
the Landlord or agreed to in writing by the Landlord shall be attached to,
hung up or used in connection with any window or door in the Leased
Premises, no article shall be placed on or permitted to block any
convector and the Landlord may require the Tenant to keep exterior window
coverings drawn.
26. All persons entering and leaving the Building at any time, except during
Normal Business Hours, shall register in the book kept by the Landlord and
the Landlord shall have the right to prevent any person from entering or
leaving the Building unless provided with a pass in a form to be approved
by the Landlord. Any person found in the Building at such time without
such pass shall be subject to the surveillance of the employees and agents
of the Landlord.
27. The Landlord shall, at its sole discretion, from time to time, determine
the location, design and use of a directory board upon which the Tenant
shall be entitled to have its name shown.
SCHEDULE "4"
OPTION TO RENEW
1. Provided that the Tenant shall not be in default under any of the covenants
or conditions of this Lease, the Landlord hereby grants to the Tenant a
right of renewal, exercisable by the Tenant giving written notice to the
Landlord not less than six (6) months and not more than nine (9) months
prior to the expiration of the Term, to renew the Term of this Lease for a
further period of FIVE ( 5 ) years (in this Lease called the "Renewal
Term").
2. There shall be no further right of renewal beyond the Renewal Term.
3. The renewal lease shall contain the same covenants, conditions and
agreements as are contained in this Lease, except:
(a) the right of renewal already exercised shall be omitted;
(b) any section or clause of this Lease which requires revision to
state correctly the manner in which it is to be applied during the
Renewal Term shall be so revised; and
(c) Rent for the Renewal Term shall be determined as provided in
paragraph 4 hereof.
4. The Rent payable with respect to the Renewal Term shall be the greater of:
(a) the Rent payable during the final year of this Lease: or
(b) the Fair Market Rent (as defined in Article 1.01, Section (s)) for
the Leased Premises as at the commencement date of the Renewal
Term.
5. The parties shall make bona fide efforts to agree as to the Fair Market Rent
with respect to the Leased Premises as at the commencement date of the
Renewal Term. If, however, the parties have not agreed as to the amount of
rent by the sixtieth (60th) day prior to the commencement of the Renewal
Term, then such rent shall be determined either:
(a) by an arbitrator mutually agreed upon by the parties who shall be
a person currently active in the Province of British Columbia as
an Accredited Real Estate appraiser having not less than five
years experience as an appraiser; or
(b) if the parties are unable to agree as to an arbitrator pursuant to
clause (a) of this paragraph, then such Fair Market Rent shall be
determined by a single arbitrator in accordance with the
provisions of the Commercial Arbitration Act S.B.C. 1986, c. 3 and
amendments thereto or legislation in substitution therefore.
SCHEDULE "5"
LEASEHOLD IMPROVEMENTS
The Tenant shall be responsible for providing their own Leasehold Improvements
including designer fees, architectural inspection fees, demolition and
construction costs and signage, all in keeping with the Landlord's Tenant
Guidelines and to the prior approval of the Landlord.
SCHEDULE "6"
TENANT IMPROVEMENTS
Tenant Improvements will be carried out in accordance with the Estimated
Construction Budget dated October 28, 1998, attached to the Offer to Lease, in
the amount of $13,426.88, plus GST with the costs to be split 50/50 between the
Landlord and Tenant. The Tenant's portion of these improvements will be
amortized over the initial term of the Lease.
Any costs over and above the Estimated Construction Budget dated October 28,
1998 shall be split 50/50 between the Landlord and the Tenant.
SCHEDULE "7"
LANDLORD'S WORK
The Landlord shall at it's cost, erect a wall to demise the Leased Premises and
create an entry door.
SCHEDULE "8"
ADDITIONAL ELECTRICAL CHARGES
The Landlord can make available Emergency Power to the Leased Premises at a one
time charge of $300.00 per amp. the Landlord shall not be responsible for any
indirect or consequential damage resulting from any failure of the building's
emergency generator however caused but shall at all times maintain it in good
operating condition.
HARBOUR CENTRE
OFFICE LEASE
TABLE OF CONTENTS
PAGE
ARTICLE 1.01: DEFINITIONS - GENERAL.....................................1
ARTICLE 1.02: DEFINITIONS - LANDLORD AND TENANT.........................4
ARTICLE 1.03: CONSTRUCTION OF LEASE TERMS...............................4
ARTICLE 1.04: CAPTIONS..................................................4
ARTICLE 1.05: CALCULATION OF "TENANT'S FLOOR AREA" AND "NET
RENTABLE AREA" OF THE BUILDING............................4
ARTICLE 1.06: NET LEASE.................................................5
ARTICLE 2.01: LEASED PREMISES...........................................5
ARTICLE 3.01: TERM OF LEASE.............................................5
ARTICLE 4.01: RENT......................................................5
ARTICLE 4.02: ADJUSTMENT OF RENT WHEN AREAS ARE MEASURED AND
CHANGED...................................................5
ARTICLE 5.01: COMMENCEMENT AND CONDUCT OF BUSINESS......................6
ARTICLE 6.01: BUSINESS AND OTHER TAXES..................................6
ARTICLE 7.01: TAX ON TENANT'S LEASEHOLD IMPROVEMENTS,
MACHINERY TAX.............................................6
ARTICLE 8.01: TAX ON LEASED PREMISES....................................6
ARTICLE 9.01: TAX ON LANDS NOT SEPARATELY ASSESSED......................7
ARTICLE 10.01: PER DIEM ADJUSTMENT OF TAXES..............................7
ARTICLE 11.01: OPERATING COSTS...........................................7
ARTICLE 12.01: PAYMENT OF ESTIMATED ADDITIONAL RENTALS...................7
ARTICLE 13.01: ADDITIONAL ELECTRICITY CHARGES...........................8
ARTICLE 14.01: REPLACEMENT OF BULBS, TUBES, BALLASTS AND LIGHT
FIXTURE PARTS.............................................8
ARTICLE 14.02: COST OF METERS............................................8
ARTICLE 14.03: TENANT'S USE OF ELECTRICITY...............................8
ARTICLE 15.01: COST OF REPAIRS PAYABLE BY TENANT.........................8
ARTICLE 15.02: REPAIR OF LEASED PREMISES BY TENANT.......................9
ARTICLE 15.03: PEACEABLE SURRENDER.......................................9
ARTICLE 15.04: TIDY CONDITION OF LEASED PREMISES.........................9
ARTICLE 16.01: OCCUPATION OF LEASED PREMISES.............................9
ARTICLE 16.02: ASSIGNMENT, SUBLETTING, PARTING WITH POSSESSION...........9
ARTICLE 16.03: LANDLORD'S RIGHTS.........................................9
ARTICLE 16.04: TRANSFER OF SHARES OF TENANT..............................10
ARTICLE 16.05: TENANT'S RECORDS OF SHAREHOLDINGS.........................10
ARTICLE 17.01: RULES AND REGULATIONS.....................................10
ARTICLE 17.02: CHANGES TO RULES AND REGULATIONS..........................10
ARTICLE 18.01: USE OF LEASED PREMISES....................................11
ARTICLE 18.02: INCREASE IN INSURANCE PREMIUMS............................11
ARTICLE 19.01: TENANT'S INSURANCE........................................11
ARTICLE 20.01: CANCELLATION OF INSURANCE.................................12
ARTICLE 21.01: OBSERVANCE OF LAW.........................................12
ARTICLE 22.01: WASTE AND NUISANCE........................................13
ARTICLE 23.01: ENTRY BY LANDLORD.........................................13
ARTICLE 24.01: INDEMNIFICATION OF LANDLORD...............................13
ARTICLE 25.01: EXHIBITING PREMISES.......................................13
ARTICLE 26.01: ALTERATIONS BY TENANT.....................................13
ARTICLE 26.02: ALTERATION OF BUILDING....................................14
ARTICLE 26.03: ALTERATION OF PIPES, CONDUITS, ETC........................14
ARTICLE 26.04: ALTERATION OF LEASED PREMISES.............................14
ARTICLE 27.01: REPLACEMENT OF GLASS......................................14
ARTICLE 28.01: SIGNS AND ADVERTISING.....................................14
ARTICLE 29.01: NAME OF BUILDING..........................................15
ARTICLE 30.01: SUBORDINATION AND ATTORNMENT..............................15
ARTICLE 31.01: ACCEPTANCE OF PREMISES....................................15
ARTICLE 32.01: CERTIFICATES..............................................15
ARTICLE 33.01: QUIET ENJOYMENT...........................................15
ARTICLE 34.01: LANDLORD'S ADDITIONAL COVENANTS...........................15
ARTICLE 35.01: TAXES AND RATES PAYABLE BY LANDLORD.......................15
ARTICLE 36.01: CLIMATE CONTROL BY LANDLORD.............................16
ARTICLE 36.02: ENERGY CONSERVATION BY TENANT.............................16
ARTICLE 37.01: ELEVATOR SERVICE..........................................16
ARTICLE 38.01: ELEVATOR SERVICE INTERRUPTIONS............................16
ARTICLE 39.01: JANITORIAL SERVICES.......................................17
ARTICLE 40.01: WATER AND ELECTRICITY.....................................17
ARTICLE 41.01: REPAIR AND MAINTENANCE....................................17
ARTICLE 42.01: TRADE FIXTURES............................................17
ARTICLE 42.02: REMOVAL OF TRADE FIXTURES.................................18
ARTICLE 43.01: FIXTURES..................................................18
ARTICLE 44.01: TIME FOR REPAIR BY LANDLORD...............................18
ARTICLE 45.01: LANDLORD'S INSURANCE......................................18
ARTICLE 46.01: DAMAGE - ABATEMENT OF RENT................................19
ARTICLE 46.02: DAMAGE TO LEASED PREMISES - TERMINATION...................19
ARTICLE 46.03: DAMAGE TO BUILDING - TERMINATION..........................19
ARTICLE 47.01: LOSS AND DAMAGE...........................................19
ARTICLE 48.01: DELAYS....................................................20
ARTICLE 49.01: DEFAULT...................................................20
ARTICLE 50.01: COSTS.....................................................21
ARTICLE 51.01: DISTRESS..................................................21
ARTICLE 52.01: RIGHT OF ENTRY............................................21
ARTICLE 53.01: RIGHT OF TERMINATION......................................21
ARTICLE 54.01: PAYMENT OF RENT AND PERFORMANCE OF COVENANTS..............21
ARTICLE 55.01: ADDITIONAL RIGHTS AND REMEDIES OF LANDLORD
ON DEFAULT................................................21
ARTICLE 56.01: NON-WAIVER................................................22
ARTICLE 57.01: OVERHOLDING BY TENANT.....................................22
ARTICLE 58.01: DIRECTORY BOARD...........................................22
ARTICLE 59.01: ACCRUAL OF RENT...........................................22
ARTICLE 60.01: SALE BY LANDLORD..........................................22
ARTICLE 61.01: NOTICE....................................................22
ARTICLE 61.02: NOTICE BY DELIVERY........................................23
ARTICLE 62.01: LAWS OF PROVINCE APPLY....................................23
ARTICLE 63.01: PAYMENT IN CANADIAN FUNDS.................................23
ARTICLE 64.01: LEASE ENTIRE AGREEMENT....................................23
ARTICLE 65.01: BINDING EFFECT............................................23
ARTICLE 66.01 TIME OF THE ESSENCE.......................................23
ARTICLE 67.01: REGISTRATION..............................................24
ARTICLE 68.01: TERMINATION UPON REGISTRATION............................ 24
ARTICLE 69.01: OPTION TO RENEW...........................................24
SCHEDULES & APPENDICES
SCHEDULE 1 - PLAN OF LEASED PREMISES
SCHEDULE 2 - SUMMARY OF TERMS OF LEASE
SCHEDULE 3 - RULES AND REGULATIONS
SCHEDULE 4 - OPTION TO RENEW
APPENDIX A - CO-COVENANTOR'S AGREEMENT
APPENDIX "A"
THE CO-COVENANTOR'S AGREEMENT
All capitalized words used in this Agreement have the same meaning as in
the Lease between HARBOUR CENTRE COMPLEX LIMITED as Landlord and ______________
____________________________ as Tenant dated ________________________, 19____.
To induce the Landlord to enter into the Lease with the Tenant and in
consideration of the sum of One Dollar ($1.00) now paid by the Landlord to the
undersigned (herein called the "Co-Covenantor") and other good and valuable
consideration (the receipt of all of which is hereby acknowledged by the
Co-Covenantor) the Co-Covenantor agrees under seal with the Landlord as follows:
1. The Co-Covenantor shall be jointly and severally liable with the Tenant as
principal debtor, and not as guarantor or surety, for due payment of all
rent or other monies payable at the time and in the manner provided in the
Lease.
2. The Co-Covenantor unconditionally agrees and covenants with the
Landlord to cause the Tenant to duly keep, observe and perform each and
every of the other agreements, conditions, covenants, obligations,
stipulations, and other provisions of the Lease to be observed,
performed and kept by the Tenant at the time and in the manner provided
in the Lease and in the event of default by the Tenant to duly observe,
perform and keep such agreements, conditions, covenants, obligations,
stipulations and other provisions himself.
3. The Co-Covenantor will indemnify and save harmless the Landlord against
and from all costs, damages, expense and losses which the Landlord may
sustain, incur or become liable for by reason of:
(a) the failure, for any reason whatsoever, of the Tenant or the
Co-Covenantor to pay all rent or other monies payable at the times
and in the manner provided in the Lease;
(b) the failure, for any reason whatsoever, of the Tenant or the
Co-Covenantor on behalf of the Tenant, to observe, perform and keep
each and every of the other agreements, conditions, covenants,
obligations, stipulations, and other provisions of the Lease to be
kept, observed and performed by the Tenant; or
(c) any act, action or proceeding of or by the Landlord for or in
connections with the enforcement of the Lease including without
limitation the provisions of this Agreement.
4. With respect to the Co-Covenantor's joint and severable liability with the
Tenant as principal debtor in accordance with paragraph 1 of this
Agreement, such obligations shall survive any act, omission or proceeding
which might release or diminish the liability of any guarantor or surety
of the due payment of any rent or other monies payable pursuant to the
Lease.
5. With respect to the Co-Covenantor's obligations pursuant to paragraph 2 of
this Agreement:
(a) the Co-Covenantor hereby renounces and waives the benefit of
discussion and compensation and any right to require the Landlord to
first proceed against the Tenant or to pursue any other remedy
whatsoever which may be available to the Landlord before proceeding
against the Co-Covenantor;
(b) The Co-Covenantor acknowledges that any act or failure to act of
or by the Landlord against or in respect of the Tenant or the
Premises pursuant to the terms of the Lease, and without limiting
the generality of the foregoing, any neglect or forbearance or
delay by the Landlord in taking any steps to enforce the
observance, performance and keeping of the covenants, agreements,
stipulations, obligations and other provisions of the Lease, any
extension of time which may be given by the Landlord from time to
time to the Tenant and any release which may be given by the
Landlord from time to time to the Tenant shall not release or
diminish the liability of the Co-Covenantor pursuant to paragraph
2 of this Agreement.
(c) The Co-Covenantor agrees that any alterations of the terms of the
Lease agreed to by the Landlord and the Tenant from time to time,
whether material or not, and whether made pursuant to the Lease or
otherwise, and any assignment of the Lease by the Landlord or the
Tenant or by any trustee, receiver or liquidator of the Tenant shall
not release or diminish the liability of the Co-Covenantor pursuant
to
paragraph 2 of this Agreement.
6. The Co-Covenantor shall execute and deliver such further assurances as the
Landlord may reasonably require including, should the Landlord so elect
upon re-entry or termination of the Lease or any early termination of the
Term, a lease of the Premises for a term equal in duration to the residue
remaining unexpired of the Term, on the same terms and conditions as the
Lease.
7. In the event of more than one Co-Covenantor to the Lease, the terms
"Co-Covenantor" shall be taken to apply to all such Co-Covenantors, who
shall be jointly and severally liable to the Landlord.
8. The obligations of the Co-Covenantor shall survive any earlier termination
of the Term.
9. The liability of the Co-Covenantor shall continue notwithstanding any
release or discharge of the Tenant in any receivership, bankruptcy,
winding-up or other creditors' proceeding or the rejection, disaffirmance
or disclaimer of the Lease in any proceeding or the repossession of the
Premises by the Landlord.
IN WITNESS WHEREOF the Co-Covenantor has executed this Agreement this
day of , 19 .
THE COMMON OR CORPORATE SEAL OF )
E-XACT TRANSACTIONS LTD )
- ------------------------------------------)
was hereunto affixed in the presence of: )
)
)
- ----------------------------------------- )
Authorized Signatory )
)
- ----------------------------------------- )
(Print Name and Title) )
) c/s
)
- ----------------------------------------- )
Authorized Signatory )
)
- ----------------------------------------- )
(Print Name and Title) )
(OR, IN THE ABSENCE OF A COMMON OR CORPORATE SEAL)
IN WITNESS WHEREOF the Co-Covenantor has executed this Lease by it's duly
authorized officers.
E-XACT TRANSACTIONS LTD.
Per:
___________________________________
Authorized Signatory
Name:______________________________
Title:_____________________________
Per:
___________________________________
Authorized Signatory
Name:______________________________
Title:_____________________________
SIGNED, SEALED AND DELIVERED by )
)
in the presence of: )
) ___________________________
____________________________________) Signature of Co-Covenantor
Name )
)
____________________________________)
Address )
) ___________________________
____________________________________) Name
)
____________________________________)
Occupation