3705 Schedule "A" - Land Lease Agreement - for Hanger - Danny RicherWHEREAS
LEASE
(AIRPORT-LAND LEASE FOR HANGAR)
Made this "'\ ~day of January, 2013.
BETWEEN
THE CORPORATION OF THE TOWN OF TILLSON BURG
(hereinafter referred to as the "Lessor")
-and-
Danny Richer
(hereinafter referred to as the "Lessee")
The Lessor owns property legally described as Part of Lots 2, 3, 4 5, 6 and 7, Concession 7
Dereham (the "Property") in the Township of South West Oxford, County of Oxford, Province of
Ontario. Contained on the Property is an airport (the "Airport"), agricultural lands and buildings
ancillary to the use of the Airport.
The Lessee is desirous to lease from the Lessor a portion of the Property being 120 feet wide by
60 feet deep comprising of 7,200 square feet more or less as marked on Schedule "A" (the
"Premises") to construct a new airplane hangar (the "Hangar''). The Lessor acknowledges that
the Hangar is not owned by the Lessor but by the Lessee.
In consideration of the covenants, agreements, warranties and payments herein set forth and provided
for, the Parties hereto respectively covenant and agree as follows:
1. GRANT OF LEASE
(1) The Lessor leases the Premises to the Lessee:
(a) at the Rent set forth in Section 2;
(b) for the Term set forth in Section 3; and
(c) subject to the conditions and in accordance with the covenants, obligations and
agreements herein.
(2) The Lessor covenants that it has the right to grant the leasehold interest in the Premises
free from encumbrances except as disclosed on title.
2. RENT
(1) Rent means the amounts payable by the Lessee to the Lessor pursuant to this Section
and includes Additional Rent.
(2) The Lessee covenants to pay to the Lessor, during the Term of this Lease rent as follows
(the "Base Rent"): For every year of the Term, the sum of $2,091.60 per annum plus
H.S.T. (based upon $0.2905 per square foot of building area), and any other applicable
services tax which may accrue on account of the Lessor collecting rent, payable yearly in
advance. Base Rent shall commence on the first day of the Term. If the first day of the
Term is not January 1" then Base Rent for the first year of the term shall be prorated until
December 31 of the initial year. Base Rent shall then be due on 1 ''day of the year
commencing on January 1", 2013 and every 1'1 day of January thereafter. The Parties
further agree that the Base Rent shall be annually increased each and every year, on the
anniversary of the commencement of the term, by the Consumer Price Index for the
Province of Ontario as established by Statistics Canada for the previous calendar year.
The Parties agree that all increases in the Base Rent by the Consumer Price Index shall
be cumulative. If the square footage of the Premises expands then Base Rent shall
accordingly increase in proportion to the additional square footage.
(3) The Lessee further covenants to pay all other sums required by this Lease to be paid by
it and agrees that all amounts payable by the Lessee to the Lessor or to any other party
pursuant to the provisions of this Lease shall be deemed to be additional rent ("Additional
Rent") whether or not specifically designated as such in this Lease.
(4) The Lessor and the Lessee agree that it is their mutual intention that this Lease shall be a
completely carefree net lease for the Lessor and that the Lessor shall not, during the
Term of this Lease, be required to make any payments in respect the Premises other
than charges of a kind personal to the Lessor (such as income and estate taxes and
mortgage payments) and to effect the said intention of the parties the Lessee promises:
~eY~-
2
(a) to pay as Additional Rent: business taxes, real estate taxes and licenses if
applicable;
(b) to pay $100.00 annually as Additional Rent for such expenses incurred by the
Lessor for the maintenance and servicing to the Airport. The Parties further
agree that this amount shall be annually increased each and every year by the
Consumer Price Index for the Province of Ontario as established by Statistics
Canada or its successor organization, for the previous calendar year. The
Parties agree that all increases in the Additional Rent by the Consumer Price
Index shall be cumulative; and,
(c) to pay for or provide servicing and maintaining the Premises and the Hangar and
shall include the following:
(i) heating, ventilating and air-conditioning if applicable;
(ii) providing hot and cold water and other utilities and services to the
Premises if applicable;
(iii) maintaining and repairing the equipment as applicable;
(iv) snow removal and landscaping on the Premises including cutting the
grass and weed control, if applicable; and,
(v) all repair, service and maintenance to the Hangar including reasonable
wear and tear;
(5) The Lessee hereby agrees to indemnify and protect the Lessor from any liability accruing
to the Lessor in respect of the expenses payable by the Lessee as provided for herein;
(6) Additional Rent shall be payable yearly in advance on the same dates stipulated for
payment of Base Rent in Section 2 (2).
(7) All payments to be made by the Lessee pursuant to this Lease are to be in Canadian
funds by bank draft, money order or cheque payable to the Lessor and shall be delivered
to the Lessor at the Lessor's address for service set out in Section 14 or to such other
place as the Lessor may from time to time direct in writing.
(8) All Rent in arrears and all sums paid by the Lessor for expenses incurred which should
have been paid by the Lessee shall bear interest from the date payment was due, or
made, or expense incurred at a rate per annum equal to the prime commercial lending
rate of the Lessor's bank plus two (2) per cent.
(9) The Lessee acknowledges and agrees that the payments of Rent and Additional Rent
provided for in this Lease shall be made without any deduction for any reason
whatsoever unless expressly allowed by the terms of this Lease or agreed to by the
Lessor in writing and no partial payment by the Lessee which is accepted by the Lessor
shall be considered as other than a partial payment on account of Rent owing and shall
not prejudice the Lessor's right to recover any Rent owing.
(10) Notwithstanding the provisions for the Lessee paying Base Rent, the Lessee shall not be
required to pay Base Rent for the first two years of this Lease.
3. TERMS AND POSSESSION
(1)
(2)
(3)
The Lessee shall have possession of the Premises for a period of twenty years,
commencing on the 1" day of May 2013 (the "Commencement Date") and ending on the
31" day of December, 2033 {the "Term").
Subject to the Lessor's rights under this Lease, and as long as the Lessee is in good
standing, the Lessor covenants that the Lessee shall have quiet enjoyment of the
Premises during the Term of this Lease without any interruption or disturbance from the
Lessor or any other person or persons lawfully claiming through the Lessor.
The Lessee shall pay the cost of hydro, gas, water, heating, air-conditioning and for all
other services and utilities as may be provided to the Premises. The Lessee shall
arrange with the local authority for connection of gas, electricity and water in the name of
the Lessee.
4. ASSIGNMENT
(1) The Lessee shall not assign this Lease or sublet the whole or any part of the Premises
unless they first obtain the consent of the Lessor in writing, which consent shall not
unreasonably be withheld and provided the sub-lessee and/or assignee signs a written
acknowledgement that he/she will be bound by the terms, conditions and rules as
provided for in this Lease. The Lessee hereby waives its right to the benefit of any
present or future Act of the Legislature of Ontario which would permit the Lessee to
assign this Lease or sublet the Premises without the Lessor's consent.
(2) The consent of the Lessor to any assignment or subletting shall not operate as a waiver
of the necessity for consent to any subsequent assignment or subletting.
Lessor's Initials ~~ Lessee's Initi~ .
3
(3) Any consent given by the Lessor to any assignment or other disposition of the Lessee's
interest in this Lease or in the Premises shall not relieve the Lessee from his obligations
under this lease, including the obligation to pay Rent, Base Rent and Additional Rent as
provided for herein.
(4) If all or more than 50% of the shares in the Lessee should be sold, assigned or
transferred in any manner to a person other than the Lessee, then such transferee shall
sign a guarantee to be bound by the terms of this Lease.
5. USE
(1) During the Term of this Lease the Premises shall not be used for any purpose other than
as an airport hangar for the storage and repair (subject to paragraph 5(3)(d)) of airplanes
without the express consent of the Lessor given in writing. The Lessee shall not
construct a new hangar or any other building on the Premises except in accordance to
the terms of this Lease.
(2) The Lessee shall not do or permit to be done at the Premises anything which may:
(a) Constitute a nuisance;
(b) Cause damage to the Premises;
(c) Cause injury or annoyance to occupants of neighbouring premises;
(d) make void or voidable any insurance upon the Premises;
(e) constitute a breach of any by-law, status, order or regulation of any municipal,
provincial or other competent authority relating to the Premises, Septic Bed,
Property or Airport; and,
(f) Create any environmental hazard. The Lessee shall not store, allowed to be
stored or do anything that creates hazardous waste or toxic material as defined
by the Environmental Protection Act or any related or successor legislation. If
any order is made by any level of government, including all agencies, Crown
corporations plus municipal bodies, or Court is made as a result of the Lessee's,
or its servants, directors, employees, invitees, customers or agents, actions or
inaction under this Paragraph or Paragraph 5(2)(e) or as a result of the Septic
Bed then the Lessee shall satisfy the terms of such order including, but not
limited to, paying all costs of the work required and shall indemnify and save the
Lessor harmless from any costs, including legal costs, if the Lessor suffers any
damages or pays any costs associated with such order.
(3) The Lessee shall:
(a) Not interfere in the use of the Airport or any other use of the Property. The
Lessee acknowledges that there are other uses of the Property and it shall not
interfere in any other use of the Property. The Lessee further acknowledges that
there are other lessees and users of the Airport and it shall not interfere in the
use or operation of the Airport in any manner nor shall it do, or allow to be done
by any of its invitees, customers, employees or agents, anything that would
cause or constitute a nuisance, safety violation or hazard to any other lessee or
any user of the Airport;
(b) Comply with all federal and provincial transportation guidelines, regulations,
rules, by-laws, statutes, directives and any other such matter that governs the
flight, use or operation of aircraft;
(c) Not block or obstruct the taxiways or runway and permit the ingress and egress
to adjacent hangars and parking areas;
(d) Not conduct any major repairs to any motor vehicle of any kind other than an
aircraft;
(e) Not start any aircraft in the Hangar;
(f) Not store any items on the Premises or in the Hangar other than aircraft and
related aircraft items;
(g) Not store any flammable products inside the Hangar or on the Premises with the
exception of fuel or necessary aircraft related products;
(h) Notify the Airport Administrator of any changes or activities inside or outside the
Hangar;
(i) Comply with all rules and regulations of the Airport and ensure the compliance of
all the Lessee's contractors, employees, agents, customers and invitees; and,
U) Provide proof of documentation showing current and proper insurance coverage
of any aircraft stored inside the Hangar.
(4) The Lessee acknowledges that the Lessor may require the adjustment in the Airport
leases and as such may demand the Lessee to move the Hangar and the location of the
Premises. The Lessor shall compensate the Lessee for any expenses in moving the
Hangar as agreed between the Parties.
Lessor's Initials ~ '-;z Lessee' s Initials ~
4
(5) The Lessee shall be permitted to build and maintain (1) aircraft hangar on the Premises
as follows:
(a) The dimensions of the Hangar shall be 60 feet by 120 feet;
(b) The style of the Hangar shall be either a pole barn style building or a metal frame
building;
(c) The siding and roof colour will conform to existing buildings and be approved by
the Lessor;
(d) Any renovation shall comply with all applicable building code standards and by-
laws of the municipality in which the Premises are located including the Township
of South West Oxford and any federal or provincial statutes, rules or
regulations;
(e) With all necessary permits obtained at the expense of the Lessee; and,
(f) The Lessee shall be responsible for and pay the cost of all repair, renovation,
and maintenance and nothing in this Lease shall render the Lessor responsible
for any such costs.
(6) The Lessor acknowledges that it has granted access to the Lessee for the Lessee to
maneuver its aircraft from the Hangar to the adjacent taxiway and runway of the Airport.
Further, the Lessor hereby grants to the Lessee, its successors and assigns, free and
uninterrupted access in, over, upon, across or through the hangar apron area, defined as
ten (1 0) metres at the front and rear of the Hangar. The Lessor grants to the Lessee the
right to enter upon the hangar apron area at all times and to pass and repass thereon as
may be required by the Lessee, and its licensees, successors, assigns, servants, agents,
employees and contractors including all necessary vehicles, equipment and machinery,
from time to time, for the purposes of installing, maintaining, replacing, and reconstructing
a suitable, in the sole and absolute discretion of the Lessor, surtace treatment to the
hangar apron. Any cost of installing, removing, maintaining, replacing and/or
reconstructing the hangar apron shall be at the sole expense of the Lessee without
contribution of the Lessor. The Lessee covenants that it shall not conduct such work to
the hangar apron without first obtaining the consent of the Lessee and such consent shall
not be unreasonably withheld. The Lessee hereby releases the Lessor from any and
every claim which may or might arise out of the proper exercise by the Lessee of any of
the rights granted herein.
(7) The Lessor covenants that it shall permit the Lessee to install a septic bed on the
Property immediately adjoining the rear of the Premises (the "Septic Bed"). The Parties
agree that the cost of installing, maintaining, replacing, repairing or upgrading the Septic
Bed shall be entirely paid by the Lessee without any contribution from the Lessor. The
location of the Septic Bed shall be approved by the Lessor prior to installation of the
Septic Bed. The Lessee covenants that it shall obtain all approvals and inspections from
any Board, municipal department or provincial ministry or agency as required to locate,
install and/or maintain the Septic Bed. The Lessee covenants that it shall restore the land
above the Septic Bed and any other part of the Property it, or its agents, contractors,
employees or assigns, damages due to the installation, maintenance, replacement or
repair of the Septic Bed. The Lessee covenants that if there is any spill, release or
discharge due to any part of the septic system on any part of the Premises and/or
Property then the Lessee shall remove all waste and remediate the soil as required to
clean such spill. The Parties agree that the Lessee's use of the Septic Bed does not
create any right of the Lessee in the land where the Septic Bed is located and such land
shall not form any part of the Premises. The Lessor covenants that it shall not charge
any Additional Rent for the use of the land for the Septic Bed. At no time shall the Lessee
use the land where the Septic Bed is located other than pursuant to this paragraph. On
any termination of this Lease, upon demand by the Lessor, the septic tank and all pipes
and parts shall be removed from the Property and Premises. The Lessee hereby
releases the Lessor from any and every claim which may or might arise out of the proper
exercise by the Lessee of any of the rights granted herein.
6. REPAIR AND MAINTENANCE
(1) The Lessee covenants that during the term of this Lease and any renewal thereof the
Lessee shall keep the Premises and Hangar in good condition including all alterations
and additions made thereto, and shall, with or without notice, promptly make all needed
repairs and all necessary replacements as would a prudent owner. The Lessee shall be
reasonable for all wear and tear to the Hangar and shall affect all repairs as necessary.
Save and accept the Lessor's, or its agents, contractors and employees, negligence
and/or intentional actions, at no time is the Lessor responsible for any repairs or damage
to the Hangar and/or Premises.
(2) The Lessee shall permit the Lessor or a person authorized by the Lessor to enter the
Premises to examine the condition thereof and view the state of repair at reasonable
times:
(a) and if upon such examination repairs are found to be necessary, written notice of
Lessor's Initial~---Lessee's Initial$
5
the repairs required shall be given to the Lessee by or on behalf of the Lessor
and the Lessee shall make the necessary repairs within the time specified in the
notice; and,
(b) if the Lessee refuses or neglects to keep the Premises in good repair the Lessor
may, but shall not be obliged to, make any necessary repairs, and shall be
permitted to enter the Premises, by himself or his servants or agents, for the
purpose of effecting the repairs without being liable to the Lessee for any loss,
damage or inconvenience to the Lessee in connection with the Lessor's entry
and repairs. If the Lessor makes such repairs the Lessee shall pay the cost of
them immediately as Additional Rent.
(3) Subject to any renewal, upon the expiry of the Term or other determination of this Lease
the Lessee agrees to surrender peaceably the Premises to the Lessor in a state of good
repair and subject to the conditions contained in this Article 6(3) may remove the Hangar
provided the Lessee places the Premises back into a similar condition as it was in prior to
the construction of the Hangar even if the construction of the Hangar predated this
Lease. At any time during the Term, expiry of the Term, if an Act of Default occurs or
upon termination of this Lease if the Lessee is in arrears of any rent whatsoever the
Lessee agrees that the Lessor shall be permitted to register such lien on the Hangar
under the Personal Property Security Act and possession of the Hangar will not be
obtained by the Lessee until the lien is paid in full with all accrued interest and legal fees.
(4) The Lessee shall immediately give written notice to the Lessor of any substantial damage
that occurs to the Premises from any cause.
(5) The Lessee hereby agrees that at no time is the Lessor responsible for any damage,
including damage to property or personal injury, as a result of the Lessee's use of the
Premises, Airport or Property and the Lessee hereby waives any cause of action in law,
equity or by statute as against the Lessor for any loss. The Lessee acknowledges that it
shall not institute any claim or make any demand against the Lessor, or anyone that may
claim indemnity from the Lessor, for any personal injury or damage to property, including
aircraft, as a result of the Lessee's use (including storage) of the Hangar, Airport or
Property. The Lessee acknowledges that the use of the Airport, Hangar or Property is at
its own risk.
(6) The Lessee hereby forever releases the Lessor from any and all claims in law, equity or
by statute as a result of any intentional or negligent acts of any other lessee of the
Property, or their agents, contractors, invitees, customers or employees that may cause
death, personal injury or property loss to the Lessee or its agents, customers, employees,
contractors or invitees.
7. ALTERATIONS AND ADDITIONS
(1) If the Lessee, during the Term of this Lease or any renewal of the Lease, desires to make
any alterations or additions to the Premises, including but not limited to; erecting
partitions, attaching equipment, and installing necessary furnishings or additional
equipment of the Lessee's business but not including erecting a new hangar or any other
building, the Lessee may do so at his own expense provided that any and all
alterations or additions to the Premises made by the Lessee must comply with all
applicable building code standards and by-laws of the municipality in which the Premises
are located including the Township of Southwest Oxford and any federal or provincial
statutes, rules or regulations.
(2) The Lessee shall be responsible for and pay the cost of any alterations, additions,
installations or improvements that any governing authority, municipal, provincial or
otherwise, may require to be made in, on or to the Premises.
(3) No sign, advertisement or Notice shall be inscribed, painted or affixed by the Lessee, or
any other person on the Lessee's behalf, on any part of the inside or outside of the
Hangar unless it is located along the facade of the Hangar's front provided it complies
with the Lessor's signage requirements and the complies with all applicable laws, by-laws
and regulations and is in good workmanlike manner. No other sign, advertisement or
notice shall be erected unless it has been approved in every respect by the Lessor in
writing.
(4) The Lessee agrees, at his own expense and by whatever means may be necessary,
immediately to obtain the release or discharge of any encumbrance that may be
registered against the Lessor's property in connection with any additions or alterations to
the Premises made by the Lessee or in connection with any other activity of the Lessee.
(5) If the Lessee has complied with his obligations according to the provisions of this Lease,
the Lessee may remove its Fixtures and Hangar at the end of the Term or other
termination of this Lease and the Lessee covenants that he will make good and repair or
replace as necessary any damage caused to the Premises by the removal of the
Lessee's Fixtures and/or Hangar.
Lessor's Initials~~ Lessee's Initial~\d(2....,
6
(6) The Lessee shall, at his own expense, if requested by the Lessor, remove any or all
additions or improvements made by the Lessee to the Premises during the Term and
shall repair all damage caused by the installation or the removal or both.
(7) The Lessee shall not bring onto the Premises or any part of the Premises any machinery,
equipment or any other thing that might in the opinion of the Lessor, by reason of its
hazardous nature, weight, size or use, damage the Premises or the Property. If the
Premises or Property are damaged the Lessee shall restore the Premises immediately or
pay to the Lessor the cost of restoring the Premises.
8. INSURANCE
( 1)
(2)
(3)
(4)
(5)
The Lessee covenants to keep the Lessor indemnified against all claims and demands
whatsoever by any person, whether in respect of damage to person or property, arising
out of or occasioned by the maintenance, use or occupancy of the Premises and
Property or the subletting or assignment of same or any part thereof. And the Lessee
further covenants to indemnify the Lessor with respect to any encumbrance on or
damage to the Premises occasioned by or arising from the act, default, or negligence of
the Lessee, its officers, agents, servants, employees, contractors, customers, invitees or
licensees. The Lessee agrees that the foregoing indemnity shall survive the termination
of this Lease notwithstanding any provisions of the Lease to the contrary.
The Lessee shall carry insurance in his own name insuring against the risk of damage to
the Lessee's property and the Hangar within the Premises caused by fire or other perils.
The Lessee shall carry such public liability and property damage insurance including
personal injury and property damage coverage with at least -efte million ($\,000,000.00)
dollars in limits of each occurrence with respect the Premises and Lessee's occupatio~
the Premises. 1-v.."> ~~l ~---~
All insurance policies in this Section 8 including this Paragraph shall name the Lessor,
where applicable, as an insured and loss payee and the policy shall include a cross-
liability endorsement.
Upon demand of the Lessor, the Lessee shall provide a copy of any and all policies of
insurance including renewals and terms of such policies to the Lessor. If any policy of
insurance is canceled the Lessee shall inform the Lessor without delay of such
cancellation and shall obtain a replacement policy without delay on the same terms as
set out in this Section 8.
9. ACTS OF DEFAULT AND LESSOR'S REMEDIES
( 1)
(a)
(b)
(c)
(d)
(e)
An Act of Default has occurred when:
The Lessee has failed to pay Rent for a period of 45 consecutive days from the
date that payment has been requested by the Lessor;
The Lessee has breached his covenants or failed to perform any of his
obligations under this lease plus:
(i) The Lessor has given notice specifying the nature of the default and the
steps required to correct it; and,
(ii) The Lessee has failed to correct the default as required by the notice;
The Lessee has:
(i) Become bankrupt or insolvent or made an assignment for the benefit of
creditors;
(ii) Had its property seized or attached in satisfaction of a judgment;
(iii) Had a receiver appointed;
(iv) Committed any act or neglected to do anything with the result that a
Construction Lien or other encumbrance is registered against the
Lessor's property; or,
(v) Taken action with a view to dissolution or liquidation;
Any insurance policy is canceled or not renewed by reason of the use or
occupation of the Premises, or by reason of non-payment of premiums;
The Premises:
(i)
(ii)
Has become vacant or remain unoccupied for a period of 120
consecutive days. For the purposes of this section the Parties agree that
the terms "vacant and "unoccupied" shall mean no use or utilization of
the Hangar and/or no storage of necessary tools, implements or
equipment in the Hangar; or,
Is used by any other person or persons, or for any other purpose than as
Lessor's Initials ~ Lessee's Initials W-
7
provided for in this Lease without the written consent of the Lessor.
(2) When an Act of Default on the part of the Lessee has occurred:
(a) The current year's rent together with the next years' rent shall become due and
payable immediately; and,
{b) The Lessor shall have the right to terminate this Lease and to re-enter the
Premises and deal with them as he may choose.
(3) If, because an Act of Default has occurred, the Lessor exercises his right to terminate this
Lease and re-enter the Premises prior to the end of the Term, the Lessee shall
nevertheless be liable for payment of Rent and all other amounts payable by the Lessee
in accordance with the provisions of the Lease until the Lessor has re-let the Premises or
otherwise dealt with the Premises in such manner that the cessation of payments by the
Lessee will not result in loss to the Lessor and the Lessee agrees to be liable to the
Lessor, until the end of the Term of this Lease for payment of any difference between the
amount of Rent hereby agreed to be paid for the Term hereby granted and the Rent any
new Lessee pays to the Lessor.
(4) If when an Act of Default has occurred, the Lessor chooses not to terminate the Lease
and re-enter the Premises, the Lessor shall have the right to take any and all necessary
steps to rectify any or all Acts of Default of the Lessee and to charge the costs of such
rectification to the Lessee and to recover the costs as Rent.
(5) If, when an Act of Default has occurred, the Lessor chooses to waive his right to exercise
the remedies available to him under this Lease or at law the waiver shall not constitute
condonation of the Act of Default, nor shall the waiver be pleaded as an estoppel against
the Lessor to prevent his exercising his remedies with respect to a subsequent Act of
Default. No covenant, term, or condition of this Lease shall be deemed to have been
waived by the Lessor unless the waiver is in writing and signed by the Lessor.
10. TERMINATION UPON NOTICE AND AT END OF TERM
(1) If the Premises and/or Property are subject to an Agreement of Purchase and Sale:
(a) the Lessor shall have the right to terminate this Lease by giving ninety (90) clear
days' notice (the "Notice") in writing to the Lessee and, at the Lessee's option,
the Lessor shall pay to the Lessee the fair market value for the Hangar unless
the Lessee agrees to remove the Hangar, and the Lessee shall provide such
vacant possession upon the expiry of the Notice provided the Lessor pays to the
Lessee a bonus of $500.00. For the purposes of this paragraph and paragraphs
10(3) and 10{4) fair market value shall be determined as of the date of the
issuing of the Notice.
(2) If the Lessee remains in possession of the Premises after termination of this Lease as
aforesaid and if the Lessor then accepts rent for the Premises from the Lessee, it is
agreed that such overholding by the Lessee and acceptance of Rent by the Lessor shall
create a monthly tenancy only but the tenancy shall remain subject to all the terms and
conditions of this Lease except those regarding the Term.
(3) The Lessor shall have the unqualified right to terminate this Lease upon one year's prior
written notification (the "Notice") if the Premises are required for any reason or purpose of
the Lessor in which event the Lessor shall pay to the Lessee the fair market value for the
Hangar, if erected by the Lessee, unless the Lessee agrees to remove the Hangar, and
the Lessee shall provide such vacant possession upon the expiry of the Notice provided
the Lessor pays to the Lessee a bonus of $500.00.
(4) The Parties agree that it is their mutual intention that at the end of the Term of this Lease
then the lease shall be renewed upon such conditions and terms as agreed between the
Parties. The Parties further agree that although it is their mutual intention to renew the
lease nevertheless either party may decide not to renew the lease for any reason. The
Parties acknowledge that upon such renewal all terms and conditions shall be negotiated
between the Parties. If the Parties do not renew this Lease then the Parties agree that
the Lessor shall have an option to purchase the Hangar for the fair market value at the
time of the purchase. If the Lessor should not purchase the Hangar then the Lessee may
sell the Hangar to a third party purchaser. Subject to the conditions contained in Article
4 of this Agreement, the Parties agree that prior to the expiry of this Lease if the Lessee
seeks to assign this Lease to a third party then the Lessor will agree to examine a
proposal to extend the term of this Lease however nothing in this paragraph shall require
the Lessor to accept any amendment of the term or new term.
Lessor's Initials &q"'£/..-----~5'> Lessee's Initials L <.....
8
11. ACKNOWLEDGMENT BY LESSEE
(1) The Lessee agrees that he will at any time or times during the Term, upon being given at
least forty-eight (48) hours prior written notice, execute and deliver to the Lessor a
statement in writing certifying:
(a) That this Lease is unmodified and is in full force and effect (or if modified
stating the modifications and confirming that the Lease is in full force and
effect as modified);
(b) The amount of Rent being paid;
(c) The dates to which Rent has been paid;
(d) Other charges payable under this Lease which have been paid;
(e) Particulars of any prepayment of Rent or security deposits; and,
(f) Particulars of any subtenancies.
12. SUBORDINATION AND POSTPONEMENT
(1) This Lease and all the rights of the Lessee under this Lease are subject and subordinate
to any and all charges against the land, buildings or improvements of which the Premises
form part, whether the charge is in the nature of a mortgage, trust deed, lien or any other
form of charge arising from the financing or re-financing, including extensions or
renewals, of the Lessor's interest in the property.
(2) Upon the request of the Lessor the Lessee will execute any form required to subordinate
this Lease and the Lessee's rights to any such charge, and will, if required, attorn to the
holder of the charge.
(3) No subordination by the Lessee shall have the effect of permitting the holder of any
charge to disturb the occupation and possession of the Premises by the Lessee as long
as the Lessee performs his obligations under this Lease.
13. RULES AND REGULATIONS
The Lessee agrees on behalf of itself and all persons entering the Premises with the Lessee's
authority or permission to abide by such reasonable rules and regulations that form part of this
Lease and as the Lessor may make from time to time.
14. NOTICE
(1) Any notice required or permitted to be given by one party to the other pursuant to the
terms of this Lease may be given
To the Lessor at:
Town of Tillson burg Corporate Office
Att: Development Commissioner
200 Broadway, Suite 204
Tillsonburg, Ontario N4G 5A7
Fax: 519.842.9431
To the Lessee at the Premises or at:
63 Highland Dr
RR4
Brantford ON N3T 5L7
Fax:
(2) The above addresses may be changed at any time by giving ten (10) days written notice.
(3) Any notice given by one party to the other in accordance with the provisions of this Lease
shall be deemed conclusively to have been received on the date delivered if the notice is
served personally or seventy-two (72) hours after mailing if the notice is mailed.
15. REGISTRATION
The Lessee shall not at any time register notice of or a copy of this Lease on title to the property
of which the premises form part without consent of the Lessor.
16. INTERPRETATION
(1) The words importing the singular number only shall include the plural, and vice versa,
and words importing the masculine gender shall include the feminine gender, and words
importing persons shall include firms and corporations and vice versa.
Lessor's Initials~ Lessee's Initi~
9
(2) Unless the context otherwise requires, the word "Lessor'' and the word "Lessee"
wherever used herein shall be construed to included the executors, administrators,
successors and assigns of the Lessor and Lessee, respectively.
(3) When there are two or more Lessees bound by the same covenants herein contained,
their obligations shall be joint and several.
17. MISCELLANEOUS
(1) Unless otherwise stipulated, parking, if applicable, shall be in common and unreserved.
(2) If a dispute should arise between the Parties in the interpretation of this Agreement or
fixing the quantum of rent for any renewal as set out in Paragraph 1 0(5) then both parties
agree that such dispute shall be referred to binding arbitration and be bound by the result
of such arbitration. The terms, form and procedure of the arbitration shall be in
accordance with the Arbitration Act or any successor legislation. The parties further
agree that the arbitrator shall be jointly chosen and the arbitrator shall have the ability to
award costs of the arbitration. This clause shall not apply if the Lessee is in default under
the terms of the Lease which include but are not limited to:
(a) of its obligations to pay Rent, Base Rent and/or Additional Rent;
(b) non-repair or maintenance of the Premises;
(c) subleased the Premises without the authorization of the Lessor;
(d) changed its use of the Premises; or,
(e) used the Premises in any manner contrary to Paragraph 5.
(3) This Lease, including any Schedule attached, shall constitute the entire agreement
between the Lessor and Lessee. There is no representation, warranty, collateral
agreement or condition which affects this agreement other than expressed herein.
(4) In the event that any clause herein should be unenforceable or be declared invalid for
any reason whatsoever, such enforce ability or invalidity shall not affect the enforce ability
or validity of the remaining portions of the covenants and such unenforceable or invalid
portions shall be severable from the remainder of this Lease.
(5) This Lease shall be construed and enforced in accordance with the laws of the Province
of Ontario.
(6) The Lessee hereby agrees that they have had an opportunity to review the terms of this
Lease and seek independent legal advice.
(7) Should any provision of this Lease require judicial interpretation or arbitration, it is agreed
that the court or arbitrator interpreting or construing the same shall not apply a
presumption that the terms thereof shall be more strictly construed against one party by
reason of the rule of construction that a document is to be construed more strictly against
the party who itself or through its agent prepared the same, it be agreed that both parties
have participated in the preparation hereof.
(8) This Lease constitutes the entire agreement between the Parties hereto pertaining to the
subject matter hereof and supersedes all prior and contemporaneous agreements,
understandings, negotiations and discussions, whether oral or written, of the parties and
there are no warranties, representations or other agreements between the Parties in
connection with the subject matter hereof, except as specifically set forth herein. No
supplement, modification, waiver or termination of this Lease shall be binding unless
executed in writing by the Parties.
(9) The Lessee agrees that it has not relied upon any representation, promise or warranty of
the Lessor with respect to the condition of the Premises, Hangar or any representation or
promise of the Lessor to repair, renovate or otherwise alter the Premises in any manner
prior to or after commencement of the Term. The Parties agree that the Premises are
being offered to the Lessee in an "as is" condition. The Lessee shall not call on or
demand the Lessor to perform any repairs or renovations prior to or after it obtains
possession. The Lessee acknowledges that it has performed its own due diligence in
establishing the state of repair of the Premises including the Hangar.
Lessor's Initials ~ Lessee's Initial;\£:_
10
In Witness of the foregoing covenants the Lessor and the Lessee have executed this Lease.
--"'KK.(.(I 'oO. 1Z!6 ~-1·111'10
~ ... --OA't-17 tt:t 10'.1 .......
Lessor's Initials ~ ~
Per:
~ v VI r Lessor
John Lessif, Mayor
The Corporation of the Town of Tillsonburg
I have authority to bind the Corporation.
and
~ r::::::::; :.e--
Lessor
Donna Wilson, Clerk
The Corporation of the Town of Tillson burg
I have authority to bind the Corporation.
~---·--7 ~~ l / (i' <------
Dcinny rue~-
( have authority to bind the Corporation
I have authority to bind the Corporation
APPENDIX A -THE "PREMISES"
Sio Sky. 81g Runway. Big HIStory.
TILLSONBURG REGION AL AIRPORT
PROPOSED 60'x120'
HANGER OPTION 4
~ Lessee's Initials ·=,-