EXHIBIT 10.4
THIS AMENDMENT TO LEASE AGREEMENT
made to take effect the 1
st day of July 2009.
(hereinafter called the
“Landlord”)
WIRELESS RONIN TECHNOLOGIES (CANADA)
INC.
(hereinafter called the
“Tenant”)
WHEREAS by a Lease dated July 1, 2007 being for a term
commencing July 1, 2007 and being completed June 30, 2009,
(hereinafter called the “Original Lease”), a copy of
which is attached hereto as Appendix “A”, made between
the Landlord and the Tenant, the Landlord did lease unto the Tenant
those certain premises municipally known as 4510 Rhodes Drive,
Building #800 (the “Leased Premises”), in the City of
Windsor, in the Province of Ontario, as more particularly described
in the Original Lease.
AND WHEREAS the parties hereto have agreed to amend the
Lease;
NOW THEREFORE THIS AGREEMENT WITNESSETH
THAT, in consideration
of the sum of One ($1.00) Dollar paid by each party unto the other,
the receipt and sufficiency of which is hereby acknowledged, the
parties hereto agree to the following:
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Effective July
1, 2009, Section 1.01 of the Original Lease shall be deleted in its
entirety and replaced with the following:
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SECTION 1.01 - Leased
Premises
In
consideration of the rents, covenants and agreements hereinafter
reserved and contained on the part of the Tenant to be paid,
observed and performed, the Landlord demises and leases to the
Tenant a portion of those certain premises municipally known as
4510 Rhodes Drive, Unit #800, Windsor, Ontario, more particularly
described in Schedule "A" attached hereto (herein called the
"Business Centre") containing an area of approximately nine
thousand seven hundred (9,700) square feet of the Business Centre,
designated on the plan which is marked Appendix "B" and Appendix
"B-1" attached hereto, (herein called the "Leased Premises" or
"Demised Premises" or "Premises").
The area of the Premises expressed in square
feet is measured from:
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the exterior
face of exterior walls, doors and windows;
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the exterior
face of all demising walls, doors and windows separating the
Premises from common facilities, if any; and
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the centre line
of all demising walls separating the Premises from adjoining
leaseable premises.
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Effective July
1, 2009, Section 1.02 of the Original Lease shall be deleted in its
entirety and replaced with the following:
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SECTION 1.02 – Term of the
Lease
TO HAVE AND TO
HOLD the Leased Premises for and during the term of five (5) years
(hereinafter called the “Term”) to be computed from
July 1, 2009 to June 30, 2014.
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Effective July
1, 2009, Section 2.01 of the Original Lease shall be deleted in its
entirety and replaced with the following:
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SECTION 2.01 – Fixed Minimum
Rent
The Tenant
covenants and agrees to pay unto the Landlord, commencing July 1,
2009, a minimum rent for the Leased Premises (hereinafter called
“Fixed Minimum Rent”) of SIXTY SEVEN THOUSAND NINE
HUNDRED ($67,900.08) DOLLARS and EIGHT CENTS per annum, payable
in equal monthly instalments in advance of FIVE THOUSAND SIX
HUNDRED FIFTY EIGHT ( $ 5,658.34) DOLLARS and THIRTY FOUR
CENTS on the first day of each month;
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Effective July
1, 2009, Section 3.02 of the Original Lease shall be deleted in its
entirety and replaced with the following:
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SECTION 3.02
- Parking Areas
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The Tenant
acknowledges that the parking areas located at the Business Centre
are provided to the Tenant in common with the other tenants or
their customers. The Tenant is guaranteed the use of 30
parking spaces. Should it be necessary, the Landlord
will dedicate, to the Tenant, parking for 30 vehicles.
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The Landlord
will, in no way, be responsible for the policing and/or supervision
of the parking spaces. The Tenant accepts that its
employees, agents, clients, customers and all others shall use the
parking spaces at their own risk or that of the Tenant, and that
the Landlord shall have the right to designate and restrict where
the Tenant, its employees, agents, customers and all others may
park their vehicles.
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Effective July
1, 2009, Section 18.02 shall be deleted in its entirety and
replaced with the following:
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SECTION
18.02 – Tenant Improvement Allowance
The Landlord
agrees to pay to the Tenant SIXTY THOUSAND ($60,000.00)
DOLLARS plus applicable goods and services tax (hereinafter
called “Tenant Improvement Allowance”) towards the
Tenant’s Leasehold Improvements. Any and all
costs and expenses over $60,000.00 will be the responsibility of
the Tenant.
6. Effective
July 1, 2009, Section 18.03 and Section 18.04 shall be added to the
Original Lease:
SECTION
18.03 – Tenant’s Work
The Tenant, at
its own expense, is responsible to ensure that the utility services
servicing the Leased Premises and the area vacated are properly
separated. The Tenant will manage the space preparation
and all Tenant Improvements and will select its own contractor for
the improvements. The Tenant shall have the right to
make alterations to the Premises that are non-structural, using
contractors of the Tenant’s choice, without the prior consent
of the Landlord. The Tenant shall not be
obligated to restore the Lease Premises upon surrender and shall
have no obligation to remove any cabling or wiring.
SECTION 18.04
– Landlord’s Work
The Landlord,
at his expense, is to erect a demising/partition wall in accordance
with the floor plan attached hereto as Schedule
“D”.
7. Effective
July 1, 2009, Section 20.29 shall be added to the Original
Lease:
SECTION 20.29 – Right to
Terminate
The Tenant
shall be allowed a one-time opportunity to terminate this Lease at
the end of the third (3rd) year, being June 30, 2012, by providing
the Landlord with a minimum of six (6) months prior written notice
of their intent. Should the Tenant exercise its Right to
Terminate, the Tenant agrees to pay the Landlord on or before
December 31, 2012, the sum of THIRTY EIGHT THOUSAND FIVE HUNDRED
FIFTY ($38,550.00) DOLLARS plus applicable taxes, of which
TWENTY FOUR THOUSAND ($24,000.00) DOLLARS is to reimburse
for unamortized Tenant Improvement Allowance and FOURTEEN
THOUSAND FIVE HUNDRED FIFTY ($14,550.00) DOLLARS , is to
reimburse for unamortized brokerage commission paid.
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The Landlord
agrees to pay to the Tenant’s broker a commission as stated
in Schedule “E” attached hereto.
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The Tenant
agrees to render vacant possession of the area of the existing
Leased Premises that they will no longer be leasing, on or before
June 30, 2009. For the avoidance of doubt, the Tenant
shall retain access to the location circled on Schedule
“D” through to July 31, 2009.
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Notwithstanding
the terms of the Original Lease, the Tenant reserves the right to
substitute any of its subsidiaries or affiliates as occupants of
the Leased Premises without obtaining the Landlord’s consent
as long as the use fits within the nature of work deemed common in
the Building.
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The parties
hereto acknowledge and confirm that the Original Lease remains a
Lease in good standing and ratify the terms and conditions therein
contained.
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Save and except
for the foregoing, all the covenants, and undertakings, terms and
conditions of the Original Lease, as amended, shall remain in full
force and effect.
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This Agreement
shall be binding on the parties hereto and their respective
successors and assigns.
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IN WITNESS WHEREOF the parties have executed this Agreement as of
the 8th day of July 2009.
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SIGNED, SEALED AND DELIVERED
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)
DIETER SCHWARZ
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in the
presence of
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) (by his
mangers herein
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)
Today Management (Windsor), Inc.
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)
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/s/
Diane Murray
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) Per:
/s/ Joy Laramie
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WITNESS
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)
(Authorized Signing Officer)
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)
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)
WIRELESS RONIN TECHNOLOGIES (CANADA) INC.
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)
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)
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)
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/s/
Scott N. Ross
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) Per: /
s/ Darin P. McAreavey
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WITNESS
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)
(Authorized Signing Officer)
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Appendix
“A”
THIS INDENTURE made to take effect as of the 1
st day of July 2007.
IN PURSUANCE OF THE SHORT FORMS OF LEASES
ACT
(hereinafter
called the "Landlord"),
WIRELESS
RONIN TECHNOLOGIES INC.
(hereinafter called the "Tenant"),
SECTION 1.01
- Leased Premises
In
consideration of the rents, covenants and agreements hereinafter
reserved and contained on the part of the Tenant to be paid,
observed and performed, the Landlord demises and leases to the
Tenant a portion of those certain premises municipally known as
Rhodes Business Centre, 4510 Rhodes Drive, Building #800, Windsor,
Ontario, more particularly described in Schedule "A" attached
hereto (herein called the "Business Centre"), being the entire
Building 800containing an area of approximately fourteen thousand
nine hundred thirty (14,930) square feet of the Business Centre,
designated on the plan which is marked Schedule "B" attached
hereto, (herein called the "Leased Premises" or "Demised Premises"
or "Premises").
SECTION 1.02
- Term of Lease
TO HAVE AND TO
HOLD the Leased Premises for and during the term of two (2) years
(hereinafter called the "Term") from July 1, 2007 (hereinafter
called the "Lease Commencement Date") and ending on June 30,
2009.
SECTION 2.01
- Fixed Minimum Rent
The Tenant
covenants and agrees to pay unto the Landlord commencing July 1,
2007, a minimum rent for the Leased Premises, herein referred to as
"Fixed Minimum Rent", in the amount of ONE HUNDRED NINETEEN
THOUSAND FOUR HUNDRED FORTY ($119,440.08) DOLLARS and
EIGHT CENTS per annum, payable in equal monthly instalments in
advance of NINE THOUSAND NINE HUNDRED FIFTY THREE
($9,953.34) DOLLARS and THIRTY FOUR CENTS on
the first day of each month;
SECTION 2.02
- Additional Rent and Charges
2.02.1
The
Tenant acknowledges and agrees that except as otherwise set out in
the Lease, it is intended that the Lease and the rentals payable
hereunder are to be completely carefree and net to the Landlord and
that the Landlord is not responsible for any costs, charges,
expenses and outlays arising from or relating to the use and
occupancy of the Leased Premises or the Business Centre, or of the
contents thereof or the businesses carried on therein, save and
except as specifically set out herein, and the Tenant shall pay, as
Additional Rent, its proportionate share of all such charges,
impositions, costs and expenses relating to the Leased Premises or
the use and occupancy thereof (save and except the Landlord's
mortgage payments and income taxes and Excluded
Costs). Without limiting the generality of the
foregoing, the Tenant shall pay as Additional Rent, in monthly
instalments in advance, on the basis of estimates provided by the
Landlord (to be adjusted on an annual basis on the basis of the
Landlord's operating statements) or otherwise as the Landlord
designates, acting reasonably, the following:
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All taxes
levied, rated, charged or assessed from time to time against the
Leased Premises (and all appurtenances thereto), or the Minimum or
Additional Rents or any part thereof, which taxes shall include,
but not be limited to, real property taxes, business transfer
taxes, value added taxes, local improvement rates, Goods and
Services tax, street improvement charges, cash in lieu of parking
charges, and any other taxes, assessments, charges or duties
levied, rated, charged or assessed in substitution for any of the
foregoing taxes, or which arise as a result of any present or
future legislation or regulation, but not capital
taxes. The amount of tax payable shall be based on a tax
bill issued by any lawful taxing authority; if there is no such
separate tax bill available, or if the Landlord elects, the Tenant
shall make such payment based on its proportionate share of all
such taxes levied, rated, charged or assessed from time to time
against the Business Centre. (The Tenant shall also pay its
proportionate share of all such taxes, charges, rates, levies,
etc., against the Common Facilities of the Business Centre, to the
extent only that such taxes on the Common Facilities of the
Business Centre have not been included in the Additional
Rent).
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(b)
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A proportionate
share of the costs and expenses incurred by the Landlord in
insuring, operating, managing and maintaining the Business Centre
and the Common Facilities of the Business Centre.
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The costs and
expenses referred to in this Article shall include, but shall not
be limited to, the total costs, charges and expenses incurred by
the Landlord after completion of original construction for the
operation, maintenance, repair, replacement and charges for the
Business Centre, including but not limited to the heating, air
conditioning and ventilating equipment, exterior roof, roof
membrane, wall pavements, foundations, floor, mechanical, plumbing
and electrical systems, fascia and pylon signs, and any and all
directory boards, the cost of snow removal, gardening, landscaping,
ice removal, garbage removal and litter control, wages paid and
salaries of personnel (including benefits paid) to implement and
maintain such services on the Common Facilities of the Business
Centre. "Common Facilities" means all area, space, equipment and
special services from time to time provided by the Landlord for the
common or joint use and benefit of the occupants and tenants of the
Business Centre, their employees, agents, servants, customers and
other invitees, including without limiting the generality of the
foregoing, parking areas, truck service ways or tunnels, loading
docks, landscaped areas, courts, stairs, refuse bins, ramps,
sidewalks and washrooms. Despite the foregoing, no such
costs shall include Excluded Costs.
The Tenant
shall pay its proportionate share of the total cost of fire, public
liability, boiler and rental income insurance to be placed by the
Landlord on the Business Centre. Such fire, public
liability, boiler and rental income insurance may be in an amount
and with such endorsements determined by the
Landlord. Such insurance policies shall contain all
standard extended and supplemental coverage clauses as may be
applicable or as may be required by the Landlord or any mortgagee,
from time to time, of the Business Centre.
In addition,
the Tenant shall pay to the Landlord a managerial and
administrative fee in the amount equal to ten (10%) percent of all
the sums payable pursuant to Section 2.02.
2.02.2 Wherever
the term "proportionate" share is used in this Lease, such term
shall mean and be a fraction, the numerator of which is the area in
square feet of the Leased Premises and the denominator of which
shall be the area in square feet of the leasable premises in the
Business Centre (measured in the same manner as the Premises), as
it may be increased or decreased from time to time. The Landlord
shall satisfy the reasonable requests of the Tenant, as to the
method of calculation of the Additional Rent, within ninety (90)
days of the Tenant's written request for the same. The
Tenant’s proportionate share on the signing of this Lease is
11. The Tenant’s proportionate share on the
signing of this Lease is 11.624%.
2.02.3 Payment
of the Additional Rent shall be subject to the Landlord's rights
pursuant to Section 2.03.
SECTION 2.03
- Landlord's Right to Estimate
The Additional
Rent provided to be paid in Section 2.02 shall be paid by monthly
instalments in advance on the first day of each and every month of
the Term hereof or any Renewal Term in an amount to be reasonably
fixed from time to time by the Landlord as an estimate of actual
expenses. The Landlord shall, within ninety (90) days of
the end of each calendar year within the Term hereof, submit to the
Tenant a statement setting out the Business Centre total Additional
Rent and charges and the Tenant's share thereof. To the
extent that the Tenant's share is greater than the amount actually
paid by it, the Tenant shall forthwith upon receipt of the said
statement pay such difference to the Landlord. In the event that
the Tenant's share is less than the amount actually paid, the
Landlord shall forthwith return such excess payment to the
Tenant. See #3 on Schedule
“C”.
SECTION 2.04
- Additional Rent
The parties
hereto agree that any money required to be paid in addition to the
Fixed Minimum Rent or charges required to be paid by the Tenant
(whether to the Landlord or third parties) under this Lease shall
constitute Additional Rent for the Leased Premises whether or not
the same be designated "Additional Rent" and the Tenant covenants
to pay such Additional Rent and for the purposes hereof "Additional
Rent" shall be collectable as Fixed Minimum Rent and the Landlord
shall have the same remedies in respect of arrears of Additional
Rent as it has in respect of arrears of Fixed Minimum Rent. If such
amounts or charges are not paid at the time provided in this Lease,
they shall nevertheless, if not paid when due, be collectable as
Additional Rent with the next instalment of rent thereafter falling
due hereunder, but nothing herein contained shall be deemed to
suspend or delay the payment of any amount of money or charge at
the time the same becomes due and payable hereunder, or limit any
other remedy of the Landlord.
SECTION 2.05
- Failure to Pay Fixed Minimum Rent or Additional
Rent
If the Tenant
fails to pay, when the same is due and payable, any Fixed Minimum
Rent, Additional Rent or any other amount payable by the Tenant
under this Lease, such unpaid amounts bear interest at an annual
rate of fifteen (15%) percent per annum.
SECTION 2.06
- Rent Deposit
The Landlord
acknowledges a deposit on hand in the amount of EIGHTEEN
THOUSAND ONE HUNDRED FIFTY EIGHT ($18,158.77) DOLLARS and SEVENTY
SEVEN CENTS which shall be applied against the last month of
the Term. No interest shall be added or paid on the said
deposit for the benefit of the Tenant. In the event the Tenant
defaults on any of the terms of this Lease, the Landlord shall keep
the said deposit without prejudice or limitation of any of the
Landlord's rights either at law or in equity.
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ADDITIONS, RELOCATION AND PARKING
FACILITIES
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SECTION 3.01
- Changes to Buildings and Parking Areas
During the Term
of this Lease, and any Renewal Term, the Landlord hereby reserves
the right at any time to construct additions to the buildings
located at the Business Centre (other than the Premises) without
compensation to the Tenant.
The Landlord
shall use its best efforts not to unduly disturb the Tenant in the
conduct of its business, it being understood that the work may be
performed during business hours of the Tenant.
The Landlord
further reserves the right to diminish the Common Facilities of the
Business Centre provided that doing so does not adversely affect
the Tenant’s ability to carry on it’s business
operations in the Premises.
SECTION 3.02
- Parking Areas
The Tenant
acknowledges that the parking areas located at the Business Centre
are provided to the Tenant in common with the other tenants or
their customers, and as such, the Tenant has no exclusive right to
any parking spaces on or near the Leased Premises.
The Landlord
will, in no way, be responsible for the policing and/or supervision
of the parking spaces. The Tenant accepts that its
employees, agents, clients, customers and all others shall use the
parking spaces at their own risk or that of the Tenant, and that
the Landlord shall have the right to designate and restrict
where the Tenant, its employees, agents, customers and all others
may park their vehicles.
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CONDUCT OF BUSINESS BY
TENANT
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SECTION 4.01
- Use of Premises
The Tenant
hereby covenants and agrees to use the Leased Premises to conduct
the business of multi-media development and software development
and training and for no other purpose whatsoever unless the Tenant
first obtains the Landlord’s consent.
The Tenant
shall not use or permit or suffer the use of the Leased Premises
for any other business or purpose than is hereinbefore provided in
this Section 4.01.
The Tenant
further agrees not to carry on any business or sell any item on the
Demised Premises which may be illegal or in violation of any zoning
or licensing by-law of the City of Windsor or breach any
restrictive covenant applicable to the Business
Centre. The Landlord represents and warrants that no
restrictive covenants exists which would in any way restrict or
limit the Tenant’s ability to use the Premises for the
purposes specifically permitted by the terms of this
Lease.
SECTION 4.02
- Municipal Compliance
The Tenant
shall satisfy itself that the use of the Leased Premises as set out
in Section 4.01 will comply with all licensing requirements of any
municipal or regulatory authority and, in this regard the Landlord
makes no warranty with respect to licensing matters.
SECTION 4.03
- Operation of Business
In operating
it’s business in the Premises, the Tenant will do so in a
reputable manner.
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ARTICLE V
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COMMON USE AREAS AND
FACILITIES
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SIGNS, AWNINGS, CANOPIES,
FIXTURES, ALTERATIONS
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SECTION 5.01
- Installation by the Tenant
5.01.1
The
Tenant shall not make or cause to be made any alterations,
additions or improvements or install or cause to be installed any
exterior signs, window lettering, floor covering, interior or
exterior lighting, plumbing fixtures, shades, curtains, drapes or
other window covering or awnings or make any changes to the
building or the exterior of the Leased Premises without first
obtaining the Landlord's written consent, which consent will not be
unreasonably withheld. The Tenant shall present to the
Landlord plans and specifications in form, content and such detail
as the Landlord may reasonably require for such work at the time
approval is sought. The Tenant covenants that any work
that may be done in respect of the Leased Premises by or on behalf
of the Tenant shall not materially conflict or interfere with any
work being done or about to be done by the Landlord in or about the
Business Centre, and the Tenant shall obtain all permits, licenses
and final inspections in respect of any such work done by or on the
Tenant's behalf in accordance with all municipal
requirements. Notwithstanding anything herein contained,
the Tenant shall make no alterations, additions or improvements
that are of a structural nature or that would lessen the
value or leasable area of the Leased Premises or the Business
Centre. The Tenant agrees and covenants to obtain final
inspection and approval by the municipality for any work performed
at the Demised Premises for which municipal permits are required,
and to provide a certificate of final approval to the Landlord,
upon request.
5.01.2 The
Landlord shall provide and install a Tenant identification panel on
the Business Centre’s main directory board and the building
directory board, the cost of which shall be included as Additional
Rent and Charges pursuant to Section 2.02.
5.01.3 The
Tenant will not place or allow to be placed or maintained on any
exterior door, wall or window of the Leased Premises any sign,
awning or canopy or advertising matter or other thing of any kind,
without first obtaining the Landlord's written approval and
consent. The Tenant further agrees to install and
maintain such sign, awning, canopy, decoration, lettering,
advertising matter or other thing as may be approved in good
condition and repair at all times and in conforming with laws and
regulations of governmental authority.
SECTION 5.02
- Removal by the Tenant
All
alterations, additions and improvements made by the Tenant shall
remain the property of the Tenant for the Term hereof, provided
that during the Term of the Lease such alterations, additions and
improvements (other than the Tenant’s trade fixtures) shall
not be removed from the Leased Premises without prior consent in
writing from the Landlord. The Tenant shall not be
required to remove any such alterations, additions or improvements
upon the expiration or earlier termination of the Term.
SECTION 5.03
- Liens, Encumbrances and Other Interests
The Tenant
shall not suffer or permit any construction or other liens to be
filed or placed or exist against the Demised Premises, the
leasehold interest of the Tenant or the Business Centre by reason
of work, labour, services or materials supplied or claimed to have
been supplied to the Tenant or anyone holding the Leased Premises
or any part thereof through or under the Tenant. If any
construction lien shall at any time be filed against the Leased
Premises, the Tenant shall cause the same to be discharged and
registered within thirty (30) days after the date the Tenant
becomes aware of the same, failing which the Landlord may terminate
this Lease on thirty (30) days written notice to the Tenant to cure
such default or the Landlord may, but shall not be obligated to,
discharge the same by procuring the discharge of such lien by
deposit of money with court. Any amount paid by the
Landlord for any of the aforesaid purposes or for the satisfaction
of any other lien, not caused or claimed to be caused by the
Landlord, and all reasonable legal and other expenses of the
Landlord, including reasonable counsel fees, in defending any such
action or in or about procuring the discharge of such lien, with
all necessary disbursements in connection therewith, with interests
thereon at the rate of fifteen (15%) per cent per annum from the
date of payment shall be repaid by the Tenant on demand, and if
unpaid may be treated as Additional Rent as provided in this
Lease. The foregoing shall in no way limit the
Landlord's remedies and actions at law, for damages or
otherwise.
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ARTICLE VI
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MAINTENANCE AND REPAIR OF LEASED
PREMISES
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SECTION 6.01
- Maintenance and Repair by the Tenant
The Tenant
covenants with the Landlord that, throughout the Term of the Lease
and any renewals, it shall maintain and repair the whole of the
Leased Premises (including exterior entrances and all glass and
show windows and frames) and all fixtures and equipment therein in
good order and repair as determined by the Landlord, acting
reasonably, damage by fire, lightning and tempest and the
exceptions in #4 on Schedule “C” only
excepted.
The Tenant,
during the Term of the Lease, and any renewal terms, shall
maintain, and repair, as when necessary the interior of the Demised
Premises including but not limited to all heating, cooling,
ventilating and mechanical, plumbing and electrical facilities
exclusively serving the Demised Premises but excluding the roof-top
heating and air conditioning units (the Landlord electing to be
responsible for the maintenance, repairs and replacement of
same.) Further, the Tenant shall enter into pest control
agreements as approved and recommended by the
Landlord The Landlord shall carry out all
maintenance, repairs and replacement the heating, ventilation and
air conditioning equipment serving the Leased Premises and the
Business Centre the cost of which shall be included in Additional
Rent & Charges pursuant to Section 2.02. The Tenant
shall enjoy the benefit of any manufacturers'
warranties.
All work
performed on the Leased Premises pursuant to this Lease, or
authorized by this Lease, whether by the Landlord or the Tenant
shall be performed diligently and done in good and workmanlike
manner, and only with materials of good quality. The
Tenant shall make all alterations, additions or repairs to the
Leased Premises or the improvements or facilities erected on the
Leased Premises required by and in accordance with the provisions
of any valid law, ordinance, statute, order or regulation now or
hereafter made or issued by any federal, provincial, county, local
or other governmental agency or entity, and shall observe and
comply with all valid laws, ordinances, statutes, orders, and
regulations now or hereafter made or issued respecting the Leased
Premises, Business Centre, or the improvements of facilities
erected on the Leased Premises by any federal, provincial, county,
local or other governmental agency or entity. See #5
on Schedule “C”.
SECTION 6.02
- Repair by the Landlord
If, after
reasonable notice given by the Landlord to the Tenant, the Tenant
refuses or neglects to repair properly and promptly as required
hereunder and to the reasonable satisfaction of the Landlord, the
Landlord may make such repairs without liability to the Tenant for
any loss or damage that may accrue to the Tenant's merchandise,
fixtures or other property or to the Tenant's business by reason
thereof, and upon completion thereof the Tenant shall pay the
Landlord's costs for making such repairs plus fifteen (15%) percent
for overhead, upon presentation of a bill therefor, as Additional
Rent. Said bill shall include interest at fifteen (15%) percent per
annum on said cost, as and from the date the Tenant receives the
bill from the Landlord.
SECTION 6.03
- Surrender of Premises
The Tenant
covenants that, upon the termination of this Lease, it will leave
the Leased Premises in the state of repair required by this Lease
to be maintained by the Tenant and the Tenant shall surrender all
locks and keys for the Leased Premises to the Landlord at the place
then fixed for the payment of rent. The Tenant's
obligations to observe or perform this covenant shall survive the
expiration or other termination of the Term of this
Lease.
SECTION 6.04
- Rules and Regulations
The Tenant
agrees as follows:
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all garbage and
refuse shall be placed in containers supplied by the Landlord; the
Tenant shall pay the cost of removal of any of the refuse or
rubbish as Additional Rent;
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no aerial shall
be erected on the roof or exterior walls of the Leased Premises, or
on the Business Centre, without, in each instance, obtaining the
written consent of the Landlord. Any aerial so installed without
such written consent shall be subject to removal by the Landlord at
the expense of the Tenant without notice at any time;
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no
loudspeakers, film projectors, televisions, phonographs, radios,
tape recorders, or other devices shall be used in a manner so as to
be heard or seen outside of the Leased Premises;
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the Tenant
shall keep the Leased Premises at a temperature sufficiently high
enough to prevent freezing of water in pipes and
fixtures;
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the outside
areas immediately adjoining the Leased Premises shall be kept clean
and free from rubbish by the Tenant to the satisfaction of the
Landlord and the Tenant shall not place or permit any obstructions
or merchandise in such areas;
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the plumbing
facilities shall not be used for any other purpose than that for
which they are built, and no foreign substance of any kind shall be
thrown therein, and the expense of any breakage, stoppage or damage
resulting from a violation of this provision shall be borne by the
Tenant;
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the Tenant
shall not burn any trash or garbage of any kind in or about the
Leased Premises or the Business Centre.
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the Tenant
shall use the common area and facilities as directed by the
Landlord acting reasonably.
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No sign, and/or
advertisement of notice shall be inscribed, painted, or affixed on
any part of the outside of the Building without Landlord’s
consent.
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The Tenant
shall not permit to be brought into the building any machinery,
equipment, article or thing that by reason of its weight might
damage the floors of the building without prior written consent of
the Landlord, and if such consent is given, any such machinery,
equipment article or thing be placed in the building only in a
location designated by the Landlord.
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The Tenant
shall not cause or permit any odours to emanate or to be dispelled
from the Premises.
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The Tenant
shall use and employ reasonable safety precautions and measures in
the storage and use of all fuel and combustible material used in
connection with its business.
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The Tenant
shall comply with and shall cause any person subject to the Tenant
to comply with all reasonable rules and regulations made by the
Landlord from time to time with respect to the use and occupation
of the Premises, provided that such rules and regulations shall not
be inconsistent with any of the provisions of this
Lease.
SECTION 6.05
- Landlord's Approval of the Tenant's Repairs
The Tenant
shall not make any repairs, alterations, replacements, decorations
or improvements to any part of the Leased Premises without first
obtaining the Landlord's written approval. The Tenant
shall submit to the Landlord:
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details of the
proposed work including drawings and specifications prepared by
qualified architects or engineers and conforming to good
engineering practice;
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evidence
satisfactory to the Landlord that the Tenant has obtained, at its
expense, all necessary consents, permits, licenses and inspections
from all governmental and regulatory authorities having
jurisdiction. All such repairs, replacements,
alterations, decorations or improvements by the Tenant to the
Leased Premises approved of by the Landlord shall be
performed:
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at the sole
cost of the Tenant;
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in a good and
workmanlike manner;
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in accordance
with the drawings and specifications approved by the Landlord;
and
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subject to the
reasonable regulations, controls and inspection of the
Landlord. Any such repair, replacement, alteration,
decoration or improvement made by the Tenant without the prior
written consent of the Landlord or which is not made in accordance
with the drawings and specifications approved by the Landlord
shall, if requested by the Landlord, be promptly removed by the
Tenant at the Tenant's expense and the Leased Premises restored to
their previous condition. Failing such removal, the
Landlord shall be entitled to remove the same forthwith without
notice and at the Tenant's sole cost and expense.
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ARTICLE VII
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INSURANCE AND
INDEMNITY
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SECTION 7.01
- Liability Insurance
The Tenant
shall, during the entire Term hereof and any renewals, keep in full
force and effect, at its own expense, a policy of public liability
and property damage insurance with companies qualified to do
business in the Province of Ontario with respect to the Leased
Premises, in which the limits of public liability shall be not be
less than One Million ($1,000,000.00) Dollars.
SECTION 7.02
- Fire Insurance
The Tenant
shall pay its proportionate share, as defined in Article II hereof,
of the total cost of fire, public liability, boiler and rental
income insurance to be placed by the Landlord on the Business
Centre. Such fire, public liability, boiler and rental
income insurance may be in an amount and with such endorsements
determined by the Landlord. Such insurance policies
shall contain all standard extended and supplemental coverage
clauses as may be applicable or as may be required by the Landlord
or any mortgagee, from time to time, of the Business
Centre.
SECTION 7.03
- Increase in Fire Insurance Premium
The Tenant
covenants with the Landlord that the Tenant will not do or omit or
permit to be done or omitted upon the Leased Premises anything
which shall be or result in a nuisance or which shall cause any
increase of premium for the fire, boiler or casualty rates on the
Leased Premises or the Business Centre or any part thereof and the
Tenant shall pay such additional premium on the fire, boiler or
casualty insurance policies in the event of any such increases, and
the additional premium shall be collectable as Additional Rent. In
determining whether increased premiums are a result of the Tenant's
use or occupancy of the Leased Premises, or the sale of any article
therein or there from a schedule issued by the organization setting
the insurance rate on the Business Centre, showing the various
components of such rate, shall be conclusive evidence of the
several items and charges which make up such rate. The
Tenant shall comply promptly with all reasonable requirements of
any underwriters association or of any insurer now or hereafter in
effect, pertaining to or affecting the Leased
Premises. The Landlord represents and warrants that the
Tenant’s use of the Premises as permitted by this Lease will
not cause any such increase.
If notice of
cancellation shall be given respecting any insurance policy or if
any insurance policy upon the Leased Premises or the Business
Centre or any part thereof shall be cancelled or refused to be
renewed by an insurer by reason of the use or occupation of the
Leased Premises or any part thereof or the acts or omissions of the
Tenant, the Tenant shall forthwith remedy or rectify such use or
occupation upon being requested to do so in writing by the
Landlord, and if the Tenant shall fail to do so within one (1)
business day of such written request, the Landlord shall have the
right to enter the Leased Premises and rectify the situation,
without liability to the Tenant for any loss or damage occasioned
by such entry and rectification, or shall be entitled to hold the
Tenant liable for any damage or loss resulting from such
cancellation or refusal, or the Landlord may at its option
terminate this Lease forthwith by leaving upon the Leased Premises
notice in writing and thereupon rent and any other payments for
which the Tenant is liable under this Lease shall be apportioned
and paid in full to the date of such termination of the Lease, and
together with an amount equal to the Fixed Minimum Rent payable
under paragraph 2.01 hereof for a period of three (3) months as
liquidated damages, and the Tenant shall immediately deliver up
possession of the Leased Premises to the Landlord. Bills for such
additional premiums shall be rendered by the Landlord to the Tenant
at such times as the Landlord may elect, and shall be due from, and
payable by the Tenant within (30) thirty days of when
rendered, and the amount thereof shall be deemed to be, and be paid
as Additional Rent.
SECTION 7.04
- Plate Glass
The Tenant
shall replace any damaged glass (including glass doors) in the
Leased Premises.
SECTION 7.05
- Other Insurance
The Tenant
hereby authorizes the Landlord to purchase such other policies of
insurance (including but not limited to loss of income insurance)
as may reasonably be carried by a prudent owner of a building or a
mortgagee thereof and the Tenant hereby agrees to pay its
proportionate share of the costs of such insurance.
A Company shall
issue all policies of insurance to be procured or companies
authorized to do business in the Province of
Ontario. The Landlord and his Agent, if applicable,
shall be named as additional insured in all policies purchased by
the Tenant and the interest of all mortgagees shall be noted
therein. The Tenant shall deliver to the Landlord, prior
to the Tenant taking possession of the Leased Premises,
certificates of insurance which shall contain a clause requiring
the insurer to give the Landlord written notice of cancellation of
such policies. The Tenant shall only be required to use
all reasonable efforts to obtain a waiver of subrogation in favour
of the Landlord, the mortgagees and those for whom they are in law
responsible, from the Tenant's insurers.
SECTION
7.07 - Indemnification of
the Landlord
Unless caused
by the negligence or wilful act of the Landlord or the
Landlord’s employees, the Tenant will indemnify the Landlord
and save it harmless from and against any and all claims, actions,
damages, liabilities and expenses in connection with loss of life,
personal injury and/or damage to property arising from or out of
any occurrence in, upon or at the Leased Premises, the occupancy or
use by the Tenant of the Leased Premises, or any part thereof, or
occasioned wholly or in part by any act or omission or negligence
of the Tenant, its agents, contractors, employees, servants,
licensees or invitees or the Landlord. In case the
Landlord shall, without fault on its part, in circumstances where
the Tenant must indemnify the Landlord, be made party to any
litigation commenced by or against the Tenant, then the Tenant
shall protect and hold the Landlord harmless and shall pay all
reasonable costs, expenses and solicitors and counsel fees, on a
solicitor and his own client basis, incurred or paid by the
Landlord in connection with such litigation. See #6
on Schedule “C”.
The Landlord,
at its option and expense, may install separate meters for the
Leased Premises in which event the Tenant shall pay all charges for
heat, water, gas, electricity or any other utility used or consumed
in the Leased Premises. In the event that the Tenant fails to make
such payment within fifteen (15) days of receipt of notice, the
Landlord may make the required payments after which the payment
shall be collected as Additional Rent. If the Landlord does not
exercise its option to install separate metres for the Leased
Premises, the Tenant shall pay its proportionate share of utilities
in accordance with Section 2.02.2. The Landlord shall
not be liable for any injury to the Tenant, its servants, agents,
employees, customers and invitees or for any injury or damage to
the Leased Premises or to any property of the Tenant, or to any
property of any other person, firm or corporation on or about the
Leased Premises or to Tenant's business caused by an interruption
or failure in the supply of any such utilities to the Leased
Premises.
SECTION 8.02
- Tenant Not to Overload Facilities
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The Tenant
shall not install any equipment which will exceed or overload the
capacity of any utility, electrical or mechanical facilities in the
Leased Premises and the Tenant will not bring into the Leased
Premises or install any utility, electrical or mechanical facility
or service which the Landlord does not approve. The
Tenant agrees that if any equipment installed by the Tenant
requires additional utility, electrical or mechanical facilities,
the Landlord may, in its sole discretion, if they are available,
elect to install them at the Tenant's sole expense and in
accordance with plans and specifications to be approved in advance
in writing by the Landlord.
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In order to
ensure that the capacity in the Leased Premises is not exceeded and
so as to avert any possible adverse effect upon the existing
services of the Business Centre or any part thereof, the Tenant
shall not, without the Landlord's prior consent in each instance,
connect any additional fixtures, appliances or equipment (other
than normal electrical fixtures, lamps, typewriters and similar
small machines) to the electrical distribution system of the
Business Centre existing as of the commencement of this
Lease. If the Landlord grants such consent, the costs of
all additional risers and other equipment required therefor shall
be paid as Additional Rent by the Tenant to the Landlord forthwith
upon demand. As a condition to the granting of such
consent, the Landlord may require the Tenant to agree to an
increase in the Additional Rent for electricity by an amount which
would reflect the increased costs to the Landlord of the additional
services to be furnished by the Landlord to the Leased Premises. In
order to accurately measure such increased use of electricity by
the Tenant, the Landlord is entitled, at its option and at the
Tenant's sole cost and expense, to install all necessary check
meters in the Leased Premises.
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ACKNOWLEDGEMENT OF TENANCY,
ATTORNMENT, SUBORDINATION
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SECTION 9.01
- Acknowledgement of Tenancy
If
acknowledgement of tenancy shall be required by the Tenant or
Landlord, the other party agrees to e
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