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2020-022 Schedule ATILLSONBURG AIRPORT HANGAR LEASE This Lease is made this gth day of March , 2020 (the "Effective Da te"). BETWEEN THE CORPORATION OF THE TOW N OF TILLSONBURG -and- Jacqueline Bailey 372361 Quarter Town Line T illso nburg , Ontario N4G 4H1 (the "Land lord ") (the "Tenan t") WHEREAS the Landlord owns all and singular that certain parcel or tract of land and premises situated, lying and being in the Township of South West Oxford in the County of Oxford , being compromised of: PT LT 3-4 CON 7 DEREHAM ; LT 5-6 CON 7 DEREHAM ; PT LT 7 CON 7 DEREH AM PT 1, 2, 3, 4 & 5, 41R2877, PT 2 & 3, 41R2714 , PT 1, 2 & 3, 41R4343 , PT 1, 2, 3 & 4 , 41R4545 ; SIT 406551; SOUTH- WEST OXFORD ; PIN : 00016-0089 (LT); LRO #41 ; municipal address be in g 244411 Airport Road , T illson burg , ON N4G 4H1 ; referred to herein as the "Property", the "Airport" or the "Tillsonburg Airport" upon which is located the Tillsonburg Airport which is owned and operated by the Landlord. In considerat io n of the covenants , agreements , warran t ies and payments herein set forth and provided for, t he sum of two dollars ($2 .00 ) paid by each party to the other and other good and valu able consideration , the receipt and sufficiency of wh ich is hereby acknowledged , the Parties hereto respectively covenant and agree as follows : 1. LEASED PREMISES (1) The Leased Premises shall consist of a portion of the Tillson burg Airport identified as Taxiway G1 Lot 5 on the plan attached as Schedule "A", being the area upon which the Tenant's airplane hangar shall be located plus one (1) metre of land extended beyond the exterior perimeter of the Tenant's airplane hangar building (the "Leased Premises"). (2) Notwithstanding the above, the Landlord reserves the right to assign an alternate lot to the Tenant on thirty (30) da ys' written notice at any time prior to the commencement of con struction of the Tenan t's hangar. (3) The Landlord covenants and agrees to the construction by the Tenant of an airplane hangar on the Leased Premises be ing a Hangar, (the "Hangar") subject to the provisio ns of Schedule "B''. The Tena nt shall complete the construction of the Hangar at its sole cost and expense. (4) The Landlord covenants and agrees that the Hangar on the Leased Premises is not owned by the Landlord but is owned by the Tenant. 2. GRANT OF LEASE (1) The Landlord leases the Leased Premises to the Tenant: (a) at the Rent set forth in Section 3; (b) for the Term set forth in Section 4; and (c) subject to the conditions and in accordance with the covenants, obligations and agreements herein including schedules. (2) The Landlord covenants that it has the rig ht to grant the leasehold interest in the Leased Premises free from encumbrances except as disclosed on title. 3. RENT (1) Rent means the amounts payable by the Tenant to the Land lo rd pursuant to this Section and includes Additional Rent. (2) The Tenant covenants to pay to the Landlord , during the Term of this Lease rent as L andlord 's Initial~ Tenan t's Initial s ..cl) 2 follows (the "Base Rent"): for every year of the Term , the total sum of $1,080.00 per annum (based upon $0.30 per square foot of Hangar building area) plus H.S .T., and any other applicable services tax which may accrue on account of the Landlord 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 1st 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 1st day of the year commencing on January 1st. 2021 and every 1st day of January thereafter. The Parties further agree that the Landlord may, in their sole and absolute discretion , increase the Base Rent annually in accordance with the Town of Tillsonburg Rates and Fees Bylaw, as amended. If the square footage of the Hangar on the Leased Premises expands then the Base Rent shall accordingly increase in proportion to the additional square footage. (3 ) The Tenant further covenants to pay all other sums required by this Lease to be paid by it and agrees that all amounts payable by the Tenant to the Landlord or to any other party pursuant to the provis ions of this Lease shall be deemed to be additional re nt ("Additional Rent") whether or not specifically designated as such in this Lease . (4) The Landlord and the Tenant agree that it is their mutual intention that this Lease shall be a completely carefree net lease for the Landlord and that the Landlord shall not, during the Term of this Lease, be required to make any payments in respect the Leased Premises other than charges of a kind personal to the Landlord (such as income and estate taxes and mortgage payments) and to effect the said intention of the parties the Tenant promises : (a) to pa y as Additional Rent: business taxes , real estate taxes and licenses if applicable; (b) to pay all annual fees in accordance with the Town of Tillson b urg Rates and Fees Bylaw, as amended , as Additional Rent for such expenses incurred by the Landlord for the maintenance and servicing of the Airport; and , (c) to pay the Landlord a one-time capital re covery charge , based on actuals , for the Landlord to construct the associated hangar apron , if applicable; and , (d) to pay for or provide servicing and maintaining the Leased Pre mises and the Hangar and shall include the following: (i) all utilities and services including , but not limited to, electricity , wate r, sewage , natural gas and propane. The Tenant acknowledges that connection fees for utilities and services are entirely at the Tenant's cost. Further, th e Tenant acknowledges th at nothin g in th is Le ase, includin g in this article , is a warranty, cove nan t or representation by the Landlord to provide connections , utilities or services to the Leased Premise s or that the services or utilities can be extended to the Leased Premises ; (ii) snow removal and landsca pin g on the Leased Prem ises including cuttin g the grass and weed co ntrol of the Leased Premises includ ing the one (1) metre area around the perimeter of the Hangar; (iii ) all re pair, service and maintenance to the Hangar in cl uding reasonabl e wear and tear; and , (iv) to pay airport in frastructure fee s in acco rd ance with the Town of Till sonburg Rates and Fees Bylaw, as a mended . (5) Th e Tenant he reby agrees to indemn ify a nd protect th e Landl ord from any liabili ty accruing to the Land lord in respect of the expenses payable by the Tenant as provided for herein . (i) The Tenant on behalf of itself/h imse lf/he rs elf/themselves, its/hi s/he r/their heirs, executors, ad ministrato rs and assigns , in cluding its/his/her/their successors in title , hereby covena nts and agrees to indemnify and save harm less the Land lord from all actions, ca use of action s, sui ts, claims, demands, damages , losses, costs, c harges and expenses of every nature and kind whatsoever by whom soeve r make brought or prosecuted, in cl ud ing legal fees , w hi c h the Landlord may in c ur or have to pay , w hi c h may arise eith er directly or indirectly by reason of any activity , acti ons, perform ance, neglige nc e or non -performance of the Tenant, its employees, servants, agents, co ntractors, subcontractors, architect, landsca pe arch itect , engin eer, surveyor, plan ner, co nsu ltant, proje ct manager or an y other person the Te nant is re sponsible f or at law durin g th e duration of thi s Agreement; in executing the Works und er thi s Ag reeme nt; by reason of in stall at io n of any Works required under t his Agreem ent; by th e failure of the T enant to comp lete the in stallation of the Works req uired und er thi s Ag ree ment; beca use of or on account of the owners hi p, constru ct ion , use existence, or maintenance of th e property describ ed in th e Agreement; by the ex ercise of the Tenan t's powers under thi s Agreem e nt ; th e co nstruction , maintena nce o r the improper or inad equate constructio n, in stallation and/or maintenance of t he Works; any act o r omiss ion of sa id parties whil e underta kin g the Works; or by reason of the neg lect of th e T enan t or its employees, servants, agents, La ndl ord's I nitia~ T enant 's Ini t ia ls ., 43- 3 contractors, subcontractors or others for whom the Tenant is responsible at law. (ii) Without limiting the generality of the foregoing , the Tenant agrees to indemnify and save harm less the Landlord for any issues related to the alteration of any grade or existing level construction , the maintenance or repair of any taxiway within the Airport, or by reason of the failure , neglect or omission of the Tenant to do anything agreed to be done pursuant to this Agreement or by reason of any act or omission of the Tenant, including failure of the Tenant to comply with the Construction Act. (6) Additional Rent shall be payable yearly in advance on the same dates stipulated for payment of Base Rent in Section 3 (2). (7) All payments to be made by the T enant pursuant to this Lease are to be in Canadian funds by bank draft, money order or cheque payable to the Landlord and shall be delivered to the Landlord at the Landlord 's address for service set out in Section 17 o r to such other place as the Landlord may from time to t ime direct in writing . (8) All Rent in arrears and all sums paid by the Landlord for expenses incurred which should have been paid by the Tenant 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 Landlord 's bank plus two (2) per cent. (9) The Tenant 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 Landlord in writing and no partial payment by the Tenant which is accepted by the Landlord shall be considered as other than a partial payment on account of Rent owing and shall not prejudice the Landlord 's right to recover any Rent owing . 4. TERMS AND POSSESSION (1) (2) (3) The Tenant shall have possession of the Leased Premises for a period of twenty years, ten months (the "Term"), commencing on the 9 day of March , 2020 and ending on the 151 day of January, 2041 . The Tenant shall pay any and all connection costs for hydro, gas, wate r, heating , air- conditioning and for all other services and utilities as may be provided to the Leased Premises. The Tenant shall arrange with the local authority for connection of gas, electricity and water in the name of the Tenant. Nothing in this paragraph or lease is a warranty or representation by the Landlord that any utilities or services are extended to the Leased Premises or can be extended to the Leased Premises. Subject to the Landlord 's rights under this Lease, and as long as the Tenant is in good standing , the Landlord covenants that the Tenant shall have quiet enjoyment of the Leased Premises during the Term of this Lease without any interruption or disturbance from the Land lord or any other person or persons lawfully claiming through the Landlord. 5. ABATEMENT OF RENT DURING CONSTRUCTION PERIOD ( 1) So lo ng as the Lease has been fully executed , the Tenan t has provided the Land lord with proof of the Tenants insu rance, and the Tenant has paid the first and last month 's Rent to be held as a deposit, the Landlord shall provide the Tenant w ith possession of the Leased Premises for a period of up to six (6) months commencing on the Effective Date for the purposes of constructing the Hangar on the Leased Premises. All terms of the Lease shall be applicable from the Effective Date save and except for the payment of Rent, Base Rent and Additional Rent which shall be payable as of the first day of the month of occupancy of the Hangar or the expiry of the six (6) month construction period whichever occurs first. (2) In the event the Tenant has not completed construction of the Hangar within the six (6) month construction period , the Landlord , in its sole and absolute discretion , may extend the construction period upon written request of the Tenant or terminate this Lease of which then the Tenant's deposit provided in Section 5 ( 1) would be forfeited . 6. ASSIGNMENT (1) The Tenant shall not assign this Lease or sublet t he whole or any part of the Leased Premises unless they first obtain the consent of the Landlord in writing , which consent shall not unreasonably be withheld and provided the sub-Tenant and/or assignee signs a written acknowledgement that he/she will be bound by the terms, conditions and ru les as provided for in this Lease. The Tenant hereby waives its right to the benefit of any present or future Act of the Legislature of Ontario which wou ld permit the Tenant to assign this Lease or sublet the Leased Premises without the Landl ord's consen t. Land lord 's Initial ~ T enant 's Initials ..... ti) 4 (2) The consent of the Landlord to any assignment or subletting shall not operate as a waiver of the necessity for co nsent to any subsequent assignment or subletting . (3) Any consent given by the Land lord to any assignment or other disposition of the Tenant's interest in this Lease or in the Leased Premises shall not relieve the Tenant from its 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 Tenant should be sold , assigned or transferred in any manner to a person other than the Tenant, then such transferee shall be bound by the terms and condi tions of this Lease. 7. USE (1) During the Term of this Lease the Leased Prem ises shall not be used for any purpose other than as an aircraft hangar for the storage, repa ir and operation of airplanes, without the express consent of the Landlord given in w riting . The Tenant shall not construct a new hanga r or any other building on the Leased Pre mises except in accordance to the terms of this Lease . (2) The Tenant shall not do or permit to be done at the Leased Premises anything which may: (a) contravene any Airport use , stan dards , or tenant policy as established by the Landlord from time to time; (b) cause damage to the Leased Premises; (c) cause injury or annoyance to occupants of neighbo uring premises; (d) make void or voidable any insurance upon the Leased Premises; (e) constitute a breach of any by-law, status, order or regulation of any municipal, provincial or other competent authority relating to the T illsonburg Airport, the Leased Premises including any septic bed or other property, equipment or appurtenances; and , (f) create an environmental hazard . The Tenan t shall not store, allowed to be stored or do anything that creates hazardous waste or toxic material as defined by the En vironmental Protection Act o r any related or successor leg islation. If an order is made by any level of government, including all agencies, crown corporations, municipal bodies, or a court is made as a result of the T enant's, or its servants, directors, employees, invitees, customers or agents, actions or inaction under this Article or Article 7(2)(e) above or as a result of the septic bed system used by the Tenant then the Tenant 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 Landlord harmless from any costs, including legal costs, if the Land lord suffers any damages or pays any costs associated w ith such order. (3) The Tenant shall : (a ) not interfere in the use of the Airport or any other use of the Property. The T enant acknowledges that there are other uses of the Property and it shall not interfere in any other use of the Property. The Tenant further acknowledges that there are other Ten ants and users of the Airport and it shall not unreasonably interfere in the use or operation of the Airport in an y manner nor sha ll 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 Tenant or any user of the Airport who are acting reasonably ; (b) comply with all federal and provincial transportation guidelines, regu la tions, 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, ap rons and parking areas; (d) not co nduct any major repairs to any motor vehicle of any kind other than an aircraft or any vehicle or machinery ancillary to or connected with aircraft; (e) not perform aircraft repair or maintenance outside of the Leased Premises; (f) not start any aircraft in the Hangar; (g) not store any items on the Leased Premises, surrounding Property or in the Hangar other than aircraft and related aircraft items except as specifically permitted in this agreement; (h) not store an y flammable products inside the Hangar or on the Leased Premises with the exception of fuel o r necessary aircraft re lated products ; (i) notify the Landlord of any public activities and/or events no less than thirty (30) days before such activity and/or event with approval by the Landlord , in its sole and absolute discretion and such approval not to be unreasonably withheld; U) comply with all rules and regulations of the Airp ort and ensure the compliance of all the Tenant's contractors, employees, agents, customers and invitees; and , (k) provide proof of documentation showing current and proper insurance coverage of any aircraft stored inside the Hangar. Landlord 's In itial s~ Tenant's Initial s ,ffe 5 (4) The Tenant covenants and agrees that the Land lo rd may require the adjustment in the Airport leases and as such may demand the Tenant move the Hangar and the lo cation of the Leased Prem ises. The La ndlord shall compensate the Tenant for any expenses in moving the Hangar as agreed between the Parties. (5) The Tenant shall be permitted to construct and ma i ntain one (1) a ircraft hangar (the "Works ") on the Leased Premises as follows: (a) the dimen sions of th e Ha ngar shall be 60 feet by 60 feet for a tota l floor area of 3600 square feet; (b) the style of the Hangar shall be either a pole barn style building or a metal frame bu ildi ng ; (c) the siding , siding colour, roof colour, hanger number, and height of the building will be maintained in accordance with cu rrent Airport standards as approved by the Landlord ; (d) the hangar apron shall be constructed of a hard surface (i .e. aspha lt or concrete) with a minimum 300mm (1 2") structural sub-base to the satisfaction of the Land lo rd ; (e) an y construction or renovation shal l comply with the construction requirements of the Landlord in its sole and absolute discretion including the construction requirements detailed in Schedule "B" to this Lease and all app licable building code standards and by-la ws of the mu nicipality in which the Leased Prem ises are located and any federal or provincial statutes , ru les or regulations ; (f) prior to the com mencement of construction, the Tenant shall submit, at its sole cost , a site plan and drainage/g rading pla n w hich shal l in cl ude , but not li mited to , the in formation re quired in this Article 7(5) of th is Lease and t he proposed floor ele vation , wh ich all shall be subject to the approval of the Landl ord; (g) the Tenant agrees to maintain the lot grading during and after construction and erection of the Hangar and sha ll comply wi th the lot grading and drainage requirements of the Land lord at the sole cost of the Tenant; (h) obtain all necessary permits, as applicable, at the expense of the T enant; and, (i) the Tenant shall be res ponsible for and pay th e cost of all repair, renova tion , and main te nance and nothing in this Lease s hall re nd er the Landlord responsible for any su ch costs . (6) The Landlord acknowledges that it has granted access to the T enant for the Tenant to maneuver its a irc raft from the Hangar to the adjacent taxiway and ru nw ay of th e Airport. Further, the Landlord hereby grants to the T ena nt, its successo rs and assigns, free and uninterrupted access in , over, upo n, across or through the Hangar apron area , defined as 6 metres wide and 26 metres from the fron t of the Hangar to the adjacent taxiway . The Landlord grants to the Tenant the right to enter upon the Hangar ap ron area a t all times and to pass and re-pass thereon as may be required by the Tenant, and its licensees, successo rs, assigns, seNan ts , agents , employees and contractors including all necessary vehicles, equipment and machinery , fro m time to time , for the purposes of installing , maintaining, rep lacing, and reconstructin g a suitable surface treatment to the Han gar apron as approved by th e Landlord in its sole and absolute discretion . Any cost of installing , removing , maintaining , rep lacing and/or reconstructing the Hangar apron shall be at the sole expense of th e Ten ant without con t rib ution of the Landlord . T he Tenant covena nts that it shall not co nduct such wo rk to the Hangar apron w ith ou t first obtain ing th e co nsent of th e Landlo rd and suc h consent shall not be unreasonably withheld . The Tenant hereby releases the Landlord from any and every c laim which may or might arise out of the proper exercise by the Tenant of any of the rights granted herein. 8. CONSTRUCTION IMPLEMENTATION SCHEDULE (1) The Tenant hereby und erta kes to complete the work herein in accordance with th e timeframes set out in th e Schedule "C" (th e "Constru ction Schedu le"). Th e Te nant sha ll subm it a proposed co nstr uctio n schedu le which shall be subject to amendments and approval by the Land lord and attached hereto as Schedule "C". A va riance to the timeframes will only be allowed if approved in writin g by the Landlord . Failure to comply may result in the Tenant being in default of this Agreement and the Landlord may seek remedy pursuant to thi s Agreement. (2) The La ndlord approved work sha l! be ca rried out by the Tenan t in a pro per and professional mann er so as t o do as little damage or disturbance as possible to the A irport lands or th e Airpo rt 's infrastructure . The Tenant s hall repair and make good a ll damage and disturbance that may be caused to th e Airport lands or the Airport's infrastructure , to the satisfaction of the La ndlord , acting reasonably , at the sole expense of the Tenant. (3) During construction , the works to be carried out by the Tenant, shall be maintained in all respects in a state of good repair by the T enant, including kee ping the site in a sound , neat, safe and c lean conditi on to th e satisfaction of the Landlord . If the s ite is not kep t in a state of good repair, upon seve n (7) bus in ess days written no ti ce to the T enant (or such shorte r tim e as may be required in t he case of an em erge ncy or oth er urgent matters or Landlord 's I niti a l s~ Tenant's Ini t ia ls ~ 6 as oth erwise provided herein), the Land lord shall have the rig ht to do any work necessary to fulfil l this co nditio n and all costs incurred by the Landlord shall be recove red from the Tenant and may be recovered as Additional Ren t. 9. REPAIR AND MAINTENANCE (1) The Ten ant covenants that during the term of this Lease and any renewal thereof, the Tenant shall keep the Leased Premises and Hangar in good condi tion including all alterations and additions made thereto, an d shall, with or with out noti ce, promptly make all needed repairs and all necessary replacements as wou ld a prudent owner. The Tenant shall be resp onsible for all wea r and tear to the Hanga r and shall affect all re pa irs as necessary. Save and accept the Landlord 's , or its agent's, contra ctor's and employee's negligence or intentional actio ns , at no time is the Land lord responsible for any repairs or damage to the Ha ngar or the Leased Premises. (2) T he Tenan t s hall permit the Landlord or a person authorized by the Land lord to enter the Leased Premi ses including the Hangar to examine the condition thereof and view t he state of repair at reas o nable times: (a) and if upon such examination repairs are found to be necessary, written notice of the repairs requi red shall be given to the Tenant by or on behalf of the Landlord and the Tenant shall make the necessary repairs within the time specified in the notice; and, (d) if the Te nant refuses or neglects to keep the Leased Prem ises including the Han gar in good repair the Landlord may, but s ha ll not be ob li ged to , make any necessary repa irs , and shall be permitted to enter t he Leased Premises and Han gar, inclu ding by its servants or agents, for the pu rp ose of effecting the repairs without being li able to the Tenant for any loss , damag e or inconven ience to the Tenant in connection with the Landlord 's entry and repairs. If the Land lord makes such repa irs t he Tenant shall pay the cost of them immediately as Add itional Ren t. (3) Subject to any renewa l, upon the exp iry of the Term or o th er determination of this Lease th e Tena nt agrees to s urrender peaceably the Le ased Premises to the Land lord in a state of good repair and subject to the conditions contain ed in this Article 9(3). Th e Tenant may remove the Hangar provided the Tenant places the Leased Premises back into a similar condition as it was in prior to the const ruction of the Hangar even if the construction of the Han gar predated th is Lease. At any time d urin g the Term , expiry of the Term , if an Act of Default occurs or upon termination of th is Lease if the Tenant is in arrears of any rent whatsoeve r the Tenant agrees that the Landlord shall be perm itted to register such lien on the Hangar under the Personal Property Security Act and possession of the Hangar wi ll not be obtai ned by th e T enant until the lie n is paid in full with all acc ru ed interest and legal fees. (4 ) The Tenant shall immediately give written notice to the Landlord of any substantial damage that occurs to the Leased Premises including the Hangar from any cause . (5) The Tenant hereby agrees that at no time is the Landlo rd responsib le for any damage, including damag e to property or personal inj ury, as a resu lt of the Tenant's use of the Leased Premises, Airport or Property and the Tenant hereby waives any ca use of action in law, equity or by statute as against the Landlord for any loss. The Tenant acknowledges that it shall not institute any claim or make any dema nd against the Landlord , or anyone that may claim indemnity from the Landlord , for any personal injury or damage to property, including aircraft, as a result of the Tenant's use (in cluding storage) of the Hangar, A irport or Property. The T enant acknowledges that the use of the Airport, Hangar or Property is at its own risk. (6) Th e Tenant hereby forever rel eases the Landlord from any and all c laims in law, equity or by statute as a result of any in tentional or neg li gent acts of any other T enan t and /or user of the Property and/or Airport, or their agents, contractors, invitees , customers or employees that may ca use death , personal injury or property loss to the Tenant or its agents , customers , em ployees, contractors or invitees. 10. ALTERATIONS AND ADDITIONS (1) If the Tenant, during the Te rm of this Lease or any renewa l of the Lease, desires to make any alterations or additions to the Leased Premises, including but not limited to ; erecting partitions , attaching equipment, and installing necessary furnishings or additional equ ipment of the Te nant's business bu t not including erecting a new hangar or any other accessory building , the Tenant may do so at hi s own expense provided that any and all alterations or additions to the Leased Premises made by the Tenant must comply w ith any requireme nt of the Landlord in clu ding Schedule "B" and all applicable bu il ding code standard s and by -laws of the munic ipality in wh ich th e Leased Premises are located and any federal or provincial statutes, rules or regulations. La ndlord 's lnidals ~ Tenant's Initial s + 7 (2) The Tenant shall pay Rent at the rate prescribed in paragraph 3 above based upon the area of the Hangar subsequent to any addition or alteration . (3) The Tenant shall be responsible for and pay the cost of any alterations, additions, installations or improvements that any governing authority, municipal, provincial or otherwise , may require to be made in , on or to the Leased Premises. (3) No sign , ad vertiseme nt or notice shall be inscribed , painted or affixed by the Tenant, or any other person on the Tenant's behalf, on any part of the outside of the Hangar un less it is located along the facade of the Hangar's front and provided it complies with the Landlord 's signage requirements and with all applicable laws, by-laws and regulations and is in good workmanlike manner. No other sign , advertisement or notice shall be erected un less it has been approved in every respect by the Landlord in writing. (4) The Tenant agrees, at its own expense and by whatever means may be necessary, immediately to obtain the release or discharge of any encumbrance that may be registered against the Landlord 's property in connection wi th any additions or alterations to the Leased Premises made by the Tenant or in connection with an y other activity of the Tenant. (5) The Tenant shall , at his own expense, if requested by the Landlord , remove any or all additions or improvements made by the Tenant to the Leased Premises during the Term and shall repa ir all damage caused by the insta llation or the removal or both . (6) The Tenant shall not bring onto the Leased Premises or any part of the Leased Prem ises any machinery, equipment or any other thing that might in the opinion of the Landlord , by reason of its hazardous nature, weight, size or use , damage the Leased Premises or the Property . If the Leased Premises or Property are damaged the Tenant shall restore the Leased Prem ises or Property immediately or pay to the Lan dlord the cost of restoring the Leased Premises or Property. 11. INSURANCE (1) The Tenant covenants to keep the Landlord indemnified and save harmless the Landlord at all times against all claims, suits, procedures, actions and demands (includ ing but not limited to all legal costs) whatsoever and howsoever arising by any person , entity or corporation whether in respect of damage, loss or death to person or property, arising out of or occasioned by the maintenance, use or occupancy of the Leased Prem ises , Airport and Property or the subletting or assignment of same or any part thereof. And the Tenant further covenants to indemnify the Landlord with respect to any encumbrance on or damage to the Leased Premises occasioned by or arising from the act, defau lt, or neglig ence of t he Tenant, its officers, agents, servants, employees, contractors, c ustomers , invitees or licensees. The Tenant agrees that the foregoing indemnity shall survive the termination of this Lease notwithstanding any provisions of the Lease to the contrary. (2) T he Te nan t shall carry in su rance in its own name insuring aga in st the risk of damage to the Tenant's property and the Hangar with in the Leased Premises caused by fire or other perils . (3) The Tenant shall ca rry such general l iab ility and property damage insurance in clud ing personal injury and property damage coverage with at least two million ($2 ,000 ,000.00 ) dollars in limits of each occurrence with respect to the Leased Premises and Tenant's occupation of the Leased Premises. Such insurance policy sha ll contain no airport site exclusion. (4) All insurance policies in this Section 11 including this Article sha ll name the Land lord , where applicable , as an insured and loss payee and the policy shall incl ud e a c ross- liability e ndorsement. All policies shall be applicable as primary in suran ce, tak ing precedence over any other insurance protection owned by the Landlord . Th e Tenant sha ll insure that each insurance policy contains a waiver of subrogation rights which the in surer may have against the Landlord and the persons for whom is legally responsible. (5) Upon demand of the Landl ord , the Tenant shall provide a copy of any and all policies of ins urance including renewals and terms of such policies to the Landlord. If any pol icy of ins urance is ca nce led the Tenant shall inform the Landlord without delay of such cancellation and shall obtain a rep la cemen t policy without delay on the same terms as set out in this Section 11. Und er no circumstances shall delivery of and review by the Landl ord of any certificate set forth or any insurance policy or any other proof of existence of the insurance coverage re lease the Tenant of its obligations to take out insu rance in strict compliance with the present provisions or constitute a waiver in favour of th e Tenant of any of the Landlord 's rights. 12. ACTS OF DEFAULT AND LANDLORD'S REMEDIES (1) An Act of Default has occurred when : Landlord 's Initia ls (\~ I , Te nant's In itials ~ 8 (a) the Tenant has failed to pay Rent for a period of 45 consecutive days from the date that payment was required to be paid to the Landlord; (b) the Tenant has breached its covenants or failed to perform any of its obligations under this Lease for a period of 45 consecutive days and : (i) the Land lord has given ten (10) days ' notice specifying the nat ure of the default and the steps required to correct it; and , (ii) the Tenant has faile d to correct the default as requ ired by the notice; (c) the Ten ant 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 resu lt that a Construction Lien or other encumbrance is registered aga inst the Landlord 's property; or, (v) taken action with a view to dissolution or liquidation ; (d) any required insurance policy is cancelled or not renewed by reason of the use or occupati on of the Leased Premises , or by reason of non-payment of premiums ; (e) the Leased Prem ises: (i) has become vacant or remain unoccupied for a period of 180 consecutive days. For the purposes of this section the Parties agree that the terms "vacant and "unoccupied" shall mean no use or uti lization of the Hanga r and /or no storage of necessary tools , imp lements or equ ipment in the Hangar; or, (ii) is used by any other person or persons , or for any other purpose than as provided for in this Lease w ithout t he written consent of the Land lo rd; (f) failure to install or remedy faulty work, if, in the opinion of the La ndlord the Tenant: i. is not proceeding or causing to be proceeded the works requi red in connection with this Agreement within thirty (30) days' of notice given ; or ii . is improperly performing the works; or iii. has neglected or aban doned before the completion, or unreasonably delayed the same, so that cond itions of this Agreement are being vio lated or carelessly executed or being carried out in bad faith ; or iv. has neglected or refused to renew or again perform such work as may be rejected by the La nd lord as defective or unsuitable; or v . has defaulted performance of the terms and conditions of this agreement; then , in any such instance , the Landlord sha ll promptly notify the Tenant, in writing, of such default or neglect and if such notification be w ithout effect within ten (10) business days after such notice, the Landlord sha ll thereupon have full aut hority and power to purchase materials and employ workers and machines for the proper completion of the works at the cost and expense of the Tenant. The cost of such work shall be calculated by the Landlord whose decision shall be final and be paid to the Landlord by the Tenant on demand . Should payment not be rece ived following the issuance of an invo ice from the Landlord , the Landlord shall collect same as Additional Rent in add ition to any other remedy available to the Landlo rd . It is further understood and agreed between the parties hereto that such entry upon the Premise shall be as an agent for the Tenant and shall not be deemed , for any purposes whatsoever, as an acceptance of the works by the Landlord. (2) When an Act of Defau lt on the part of the Tenan t has occurred : (a) the current year's Rent together with the next years' Rent shall become due and payable immediately; and , (b) the Land lord shall have the ri ght to terminate this Lease and to re-enter the Leased Premises and deal with them as it may c hoose. (3) If, because an Act of Defa ult has occurred , the Landlord exercises its right to terminate this Lease and re-enter the Leased Premises prior to the end of the Term , the Tenant sha ll nevertheless be liable for payment of Rent and all other amounts payable by the Tenant in accordance with the provisions of the Lease until the Landlo rd has re -let the Leased Premises or otherwise dealt with the Leased Premises in such manner that the cessatio n of payments by the Tenant will not resu lt in loss to the Land lord and t he Tenant agrees to be li able to the Landlord, until the end of the Term of this Lease for payment of L andlord 's lnitials(Yvy= T enant's lnitial ~_-4 9 any difference between the amount of Ren t hereby agreed to be paid for the Term hereby granted and the Rent any new Tenant pays to the Landlord. (4) If when an Act of Default has occurred , the Landlord chooses not to terminate the Lease and re-enter the Leased Premises, the Landlord shall have the right to take any and all necessary steps to rectify any or all Ac ts of Default of the Tenant and to charge the costs of such rectification to the Tenant and to recover the costs as Rent. (5) If, when an Act of Default has occurred , the Landlord chooses to waive its right to exercise the remedies available to it 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 Landlord to prevent his exercis ing his remedies with respect to a subsequent Act of Default. No covenant, term , or condition of this Lease sha ll be deemed to have been waived by the Landlord unless the wa iver is in writing and signed by the Land lord. 13. TERMINATION UPON NOTICE AND AT END OF TERM (1) If the Leased Premises and/or Property are subject to an Ag reement of Purchase and Sale : (a) The Landl ord shall have the right to terminate this Lease, notwithstanding that the Term has not expired , by giving ninety (90) days' notice (the "Notice") in writing to the Tenant and , at the Tenant's option , th e Landlord shall pay to the Tenant the fair market value fo r the Hangar or the Tenant agrees to remove the Hangar and comply with Articles 9(3) and 10(5) of this Lease. Upon expiry of the Notice the Tenant shall provide vacant possession of the Leased Pre mises provided the Landlord pays to the Tenant a bonus of $500.00. For the purposes of this Article and Articles 13(3) and 13(4) fair market va lu e shall be determined as of the date of the issuing of the Notice. (2) If the Tena nt remains in possession of the Leased Premises after term ination of th is Lease as aforesaid and if the Landlo rd then accepts Rent fo r the Leased Premises from the Tenant, it is agreed that such overholding by the Tenant and acceptance of Rent by the Landlord sha ll crea te a monthly tenan cy only but the tenancy shal l remain subject to all the terms and conditions of this Lease except those regarding the Term . The Parties agree that if the Term is not renewed then upon expiry of the Term or if the Tenant is an overho ld ing tenant then either Party may termin ate the lease upon sixty (60) days written notice to the other party and the Tenant sha ll comp ly with Artic les 9(3) and 10(5) of th is Lease. (3) Othe r than a termination of this Lea se in accordance with Articl e 13(1) of th is Lease , the Landlord shall , at any time and notwithstanding that the Term has not expired, have the unqualified right to terminate this Lease upon one year's prior written notification (the "Notice") if the Leased Premises are required for any reason or purpose of the Landlord in wh ich event the Landlord shall pay to the Tenant the fair market value for the Ha ngar, if erected by the Tenant, unless the Tenant agrees to remo ve the Hangar and comply with Articles 6(3) and 7(5) of th is Le ase, and the Tenant shall provi de such vaca nt possession upon the exp iry of the Notice provided the Landlord pays to t he Tenant 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 the lease shall be renewed upon such conditions and terms as agreed between the Parties. Th e Parties further agree that although it is their mutua l intention to renew the lease neverthele ss either party may decide not to renew the lease for any reason . The Parties acknowledge that upon such rene wal all terms and conditions sha ll be negotiated between the Parties. If th e Pa rties do not renew this Lease then the Parties agree that the Landlord sha ll be granted the Right of First Refusal to purchase the Hangar (the "Opti o n"). The Tenant covena nts that it will not sell the Hanga r, or any part thereof, to any person , firm or corporation, without first providing the Landlord to exercise its Option as set out in the terms of this paragraph . Upon the Tenant receiv ing a bona fide offer in writing (the "Third Party Offer") the Tenant shall deliver to the Airport Office, 2444 11 A irpo rt Road , Township of South-West Oxford , Ontario , a copy of the Th ird Party Offer and the Landlo rd sha ll have twenty business days (the "Notice Period"} from t he date of receipt of the Third Party Offer to exercise the Option to matc h the Third Party Offer. If the Landl ord exercises its option in the Notice Period then it must inform the Tenant at the Property in writing th at it will purchase the Ten ant's interest in the Hangar on the same terms and conditions , or more favourab le terms to the Tenant at th e Landlord 's discretion , as contained in th e Third Party Offer (the "Landlord 's Offer"). If the Landlord exercises its Option in the Notice Period then the Tenant must sell the Hangar to the Landlord upon the terms and co nditions as con ta in ed in the Land lord 's Offer. If the Landlord does not exercise its option in the Notice Period then th e Tenant shall be at liberty to accept the Third Party Offer provid ed that there are no modifications to th e Third Party Offer. If any modifica tio ns are made to the Third Party Offer th en the Land lord sha ll be permitted to exercise its option pu rsuant to the terms of this paragraph . For the L andlor d's I ni t i a l s ~ Ten ant's I n it ial s ~ 10 purpose of this paragraph, if the Tenant is a corporation, the word "sell", in addition to its ordinary meaning , shall be deemed to mean and include a sale or disposition of the corporate shareholding of the Tenant by the person or persons who, at the date of the commencement of the lease holds or hold a majority of the corporate shares. Subject to the conditions contained in Article 4 of this Agreement. the Parties agree that prior to the expiry of this Lease if the Tenant seeks to assign this Lease to a third party then the Landlord will agree to examine a proposal to extend the term of this Lease however nothing in this paragraph shall require the Landlord to accept any amendment of the term or new term . 14. ACKNOWLEDGMENT BY TENANT (1) The Tenant agrees that it 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 Landlord 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 sub tenancies. 15. SUBORDINATION AND POSTPONEMENT (1) This Lease and all the rights of the Tenant under this Lease are subject and subordinate to any and all charges against the land , buildings or improvements of which the Leased 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-financ ing , including extensions or renewals, of the Landlord 's interest in the Property. (2) Upon the request of the Landlord the Tenant will execute any form required to subordinate this Lease and the Tenant's rights to any such charge, and will, if req uired , attorn to the holder of the charge. (3) No subordination by the Tenant shall have the effect of permitting the holder of any charge to disturb the occupation and possession of the Leased Premises by the Tenant as long as the Tenant performs his obligations under this Lease. 16. RULES AND REGULATIONS The Tenant agrees on behalf of itself and all persons entering the Leased Premises with the Tenant's authority or permission to abide by such reasonable rules , standards and regulations of the Airport and/or Property which shall form part of this Lease and as the Landlord may make and/or amend from time to time. 17. 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 Landlord at: Tillsonbu rg Regional Airport Attn: Airport Administrator 244411 Airport Rd South-West Oxford , On N4G 4H1 Fax: 519-842-3445 To the Tenant at the Leased Premises or at: Jacqueline Bailey 372361 Quarter Town Li ne Tillsonburg , Ontario N4G 4H1 (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 Landlord 's Initial s (YY'rtr= . Tenant 's Initi als # 11 served personally or seventy-two (72) hours after mailing if the notice is mailed . 18. REGISTRATION The Tenant shall not at any time register notice of or a copy of this Lease on title to the Property of which the Leased Premises form part without consent of the Landlord. 19. INTERPRETATION (1) The words importing the singular number only shall include the plural , and vice versa, and words importing the masculine, feminine or neutral gender shall include the other genders, and words importing persons shall include firms and corporations and vice versa. (2) Unless t he context otherwise requires, the word "Landlord" and the word "Tenant" w herever used herein shall be construed to include the executors, adm inistrators, successors and assigns of the Landlord and Tenant, respectively. (3) When there are two or more Tenants bound by the same covenants herein contained , their obligations shall be joint and several. 20. MISCELLANEOUS (1) Unless otherwise stipulated , parking , if applicable, in the common parking area shall be in common and unreserved . (2 ) If a dispute should arise between the Parties in the interpretation of this Agreement 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 t he arbitrator shall have the ability to award costs of the arbitration . This clause shall not apply if the Tenant is in default under the terms of the Lease which include but are not li mited to: (3) (4) (5) (6) (7) (8) (a) its obligations to pay Rent, Base Rent and/or Additional Rent; (b) non-repair or maintenance of the Leased Premises; (c) subleased the Leased Premises without the authorization of the Landlord , acting reasonably; (d) changed its use of the Leased Premises ; or, (e) used the Leased Premises in any manner contrary to Article 7. 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. This Lease shall be construed and enforced in accordance with the laws of the Province of Ontario. Any proceeding shall be brought at the City of Woodstock in the County of Oxford , Ontario. The Tenant hereby agrees that it has had an opportunity to re view the terms of this Lease and seek independent legal advice. 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 constructio~ that a document is to be construed more strictly against the party who itself or through it~ agent prepared the same, it be agreed that both parties have participated in the prepara1t· n hereof. This Lease and it's schedules constitutes the e ntire agreement between the Parties hereto pertaining to the su ~ect matter hereof and supersedes all prior and contemporaneous agreements, ~nderstandings , negotiations and discussions, w hether oral or written , of the parties and there are no wa rranties, representations o r other agreements between the Partie in connection w ith the subject matter hereof, except as specifically set forth herein . No supplement, modification , waiver or terminatio n of th is Lease shall be binding unless executed in writing by the Parties. The Tenant agrees that it has n ~t relied upon any representation , promise or warranty of the Landlord with respect to t ~e condi tion of the Leased Premises, Hangar or any representation or promise of tHe Landlord to repa ir, renovate or otherwise alter the Leased Premises in any mann ~r prior to or after commencement of the Term. The La ndlord 's initial s ~ l ,, Tenant 's Initi a ls J 12 Parties agree that the Leased Premises are being offered to the Tenant in an "as is" condition. T he Tenant shall not call on or demand the Land lord to perform an y re pairs or renovations p rior to or after it obtains possession . The Tenant acknowledges that it has performed its own due diligence in establishing the state of repair of the Leased Premises including the Hangar. In Witness of the foregoing covenants the Landlord and the Tenant have se. Landlord's Initi a ls ~ t Pe r: Landlord Stephen Moln ar, Mayor The Corporation of the Town of Tillson burg ~ . Landlord Nr 'Ghtl.Li...Sm1 Muo1111B 'Nilson, Clerk The Corporation of the Town of Tillson burg We ha ve authority to bi nd the Corporation. Jacde Tenant Tenant's I nit i a l s ~ 13 Sched ul e "A " THE "LEASED PRE MISES" Taxiway G1 Lot 5 /_,....,._.,,."' ./· / / / , . .-,/ / -------- ,.,. / / ./ // /. ,/ ....... /. / /' , / , ---/ .... // , / . ,.• ,.-. ./ .. ,../ ..· .. ,. .-.. · .- d ~· :JE ~_:... ~if ,:;-fl rtv$ ) -- Sl ... ;:; "' ~ ~ ;:: ~ "' N I I I BAR N FUTUR E POLE BARN FV 7 CAR ST'ILE HANGAR ~ D9m 18.29m X 16.Wm 18 :n (60' x 60') J LO T 5 I tU l! "' ~u l! "! I ~ I EASE LIMITI LEASE LIMIT' :TYP.) (TYP.} ~1 I ~1 .,I :;I ,, N ~ ~- ·---·-·-·--·--·--·-·-·-· -·-·-·- ·--------------------------· ~ Ex. = (ro 5f 11CVO\f'O)l ~-.vo.~e ·27tJ.42 25W .... "' -SE '\> ::;-~ ~~ \ j ,., "'~"' ~ ::: ~ ~ ;:...c ...... -------* ;::" NU ----~'ff.Jn I > f -~~+. J ~ ~ . ' ~11,, \~ "'!I ~· _, I\ ' ,_ I I~ ' I '1 .,. I ~ 1. "'~71.,~ DENOTES EXISTING GRADE TO\\''N OF TILLSONBURG 2. ~(1.2 4 DENOTES PROPOSED GRADE OPERATIONS SERVICES J. 271.24 EP DENOTES PROPOSED GRADE ENGINEERING DEPARTMENT 4 · §~kCE4 DENOTES PROPOSED GRADE 200 8ROADW.A. Y SUITE 204, 5 . 271.24 DENOTES PR OPOSED GRADE BLDG TILLSON BURG, ONTAR IO, N4G 5A7 6. ~n·24 DENOTES FI NISHED FLOOR ELEVATION 7 . 0 DENO TES EXISTING CATCHBAS!N llArE Tln.E PROJECT No. SCALE D£SjCfl SI! UM. 13, 20l9 FUTU RE POLE BARN STYLE HANGER 10 0 -19 CRAVIN CM """''+i Z'O.."'\J HORZ. -1 : 200 2020 Oi!:tral SP JAN 15. ~"O 2~1.r.J11w .., ............. z />ff>P.O\>t:D KJO SHEET No. LOT 5 LOT 5 SITE GRADIN G PL AN PLAN FILE tlo, Land lo rd's In iti al s ~ l Tenan t's In it ials ~ 14 SCHEDULE "8" CONSTRUCTION REQUIREMENTS 1. The Tenant shall construct an airplane hangar building with approximate dimensions of 60 feet wide by 60 feet deep compromising a floor area of 3600 square feet. 2 . The Tenant covenants and agrees, notwithstanding any other statute, regulation or provision regarding the federal government's authority to regulate the aeronautics industry, to: (a) obtain from the Landlord an Airport Development Permit prior to construction ; (b) to pay to the Lan dlord a flat fee of $600 to administer the Airport Development Permit; (c) to construct the airplane hangar, and any other building that may be permitted , to the standard of the Ontario Building Code, 0 . Reg . 332/12 as amended or replaced from time to t ime (the "OBC ") and to the satisfaction of the Landlord in its sole a nd absolute d iscretion , and ; (d ) to ensure all persons retained by the Tenant have appropriate health and safety policies, insu rance and WSIB coverage. 3. The Tenant shall provide to th e Landl ord the following in order to obtain an A irport Development Permit and approval for use of the Leased Premises and hangar thereon: (a) prior to construction , submission of: 1. all applicable fees ; 2. 2 copies of a site plan showing the proposed location of the hangar and dimensions to the adjacent buildings; 3. 2 copies of construction drawings (foundation plan , floor plan , build ing elevations, diaphragm/truss bracing , anchorage , construction details/finishes , etc.) stamped by a professional engineer; 4. 2 copies of the truss drawings stamped by a professional engineer; and 5. Commitment to General Reviews form completed by both the bu ild ing owner and professiona l eng ineer; (b) prior to occupancy and acceptance: 1. inspection of the construction and acceptance of same by the Landlord in in respect of compliance with the OBC, the terms of this Airport Lease and all policies and rules regulating the T illsonburg A irport; and 2 . subm ission of all site reports (footing inspection , fram ing inspection , occupancy inspection) and an occupancy report from the professional eng ineer; and , (c) final approval : 1. provide a final report (ve rifying outstand ing items not completed at occupancy have been completed/corrected) from the professional engineer if applicable. 4 . The parties covenant and agree that the Tenant is not required to obtain a bui lding permit from the Township of Southwest Oxford for construction of buildings on the Tillsonburg Airport. 5. T he Tenant covenants and agrees that fai lure to comply with the provisions of this schedule sha ll be an event of default of this Lease and in the absence of remedying such defau lt , shall permit the Landlord to terminate this Lease and seek any and all other recourse against the tenant in such instance. Lan dl ord 's Initial s ~ Tenan t's Initi a ls ~ 15 SCHEDULE "C" CONSTRUCTION SCHEDULE Provided by the Tenant prior to execution of the lease agreement and approved by the Landlord . Preliminary Construction Schedule: Start of Construction June 1, 2020 End of Construction Oct ober 31 , 2020 Note : Tenant has expressed that a detailed construction schedule will be provided once contractor and Tenant have finalized. La ndl ord 's l ni t ial (}vl~ Tenant 's Init i a l s ~