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LEASE Made this ## d ay of MONTH , 20## THIS AGREEMENT MADE BETWEEN: THE CORPORATION OF THE CITY OF ORILLIA (the “Landlord”) -and- (the “Tenant”) - and - (the “Guarantor”) WHEREAS the Landlord owns and maintains facilities for food and restaurant/bistro operations at the Leacock Museum National Historic Site-Swanmore Hall facility. NOW THEREFORE In consideration of the rents, covenants and obligations stipulated herein the Landlord and the Tenant have agreed to enter into a Net Lease of the Premises more particularly described in Schedules “A”, attached (the “Premises”). 1. DEFINITIONS “Additional Rent” means any and all sums of money or charges required to be paid by the Tenant under this Lease (except Base Rent, Percentage Rent and Utility Fees) whether or not the same are designated as “Additional Rent”, or whether or not the same are payable to the Landlord or otherwise, and all such sums are payable in lawful money of Canada without

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Page 1: LEASE - orillia.ca€¦  · Web viewfor the Tenant, his/her servants and agents, to enter and leave the facilities of the Landlord for the purpose of obtaining access to the Leased

LEASE

Made this ## day of MONTH, 20##

THIS AGREEMENT MADE BETWEEN:

THE CORPORATION OF THE CITY OF ORILLIA(the “Landlord”)

-and-

(the “Tenant”)

- and -

(the “Guarantor”)

WHEREAS the Landlord owns and maintains facilities for food and restaurant/bistro operations at the Leacock Museum National Historic Site-Swanmore Hall facility.

NOW THEREFORE In consideration of the rents, covenants and obligations stipulated herein the Landlord and the Tenant have agreed to enter into a N e t Lease of the Premises more particularly described in Schedules “A”, attached (the “Premises”).

1. DEFINITIONS

“Additional Rent” means any and all sums of money or charges required to be paid by the Tenant under this Lease (except Base Rent, Percentage Rent and Utility Fees) whether or not the same are designated as “Additional Rent”, or whether or not the same are payable to the Landlord or otherwise, and all such sums are payable in lawful money of Canada without deduction, abatement, setoff, or compensation whatsoever, except as provided herein. Additional Rent is due and payable with the next monthly instalment of Rent unless otherwise provided, but in any event is not payable as part of Rent. Additional Rent may be estimated by the Landlord form time to time and such estimated amount is payable in monthly instalments in advance together with the monthly instalments of Base Rent; and, Additional Rent so estimated shall be adjusted, if necessary, as provided in this Lease. All Additional Rent is deemed to be accruing on a day-to day basis.

“Premises” or “Demised Premises” means 1744 square feet located at 50 Museum Dr., Orillia, Ontario L3V 6K5, as more particularly shown outlined in bold and shaded grey on Schedule “A” to this Lease.

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"Gross Sales" means the sum of the selling prices of all food and beverage service sold on or from the Leased Premises or by persons connected with the Leased Premises whether such sales are at wholesale or retail, for cash, credit, exchange of merchandise or any other consideration but excluding Harmonized Sales Tax (HST).

"Term" means the term demised by this Lease and any renewal thereof.

"Base Rent” means the sum of the monthly rental fee plus a monthly Percentage Rent based on the total of last year’s Percentage Rent paid to the Landlord, amortized over the term of the current agreement.

"Percentage Rent" means an amount based on 16.75% of Gross Sales from the Leased Premises.

“Utility Fees” means metered utilities i.e. natural gas and any other utility billed separately under this agreement.

2. GRANT OF LEASE

(1) The Landlord leases the Premises to the Tenant:

(a) at the Rent set forth in Section 3;

(b) for the Term set forth in Section 4;

(c) subject to the conditions and in accordance with the covenants, obligations and agreements herein;

(d) to operate a bistro, restaurant or food service operation at the Leased Premises (see Schedule “A”), which may or may not include a licenced bar; for the sale of hot and cold beverages, snack foods, prepared foods, meals and confectionery items only; and

(e) for the Tenant, his/her servants and agents, to enter and leave the facilities of the Landlord for the purpose of obtaining access to the Leased Premises at all reasonable times, subject to the Landlord’s reasonable regulations and security precautions.

3. RENT

(1) The Tenant covenants to pay to the Landlord, during the Term of this Lease without any deduction, set-off or abatement the following Rent, payable on the 15 th day of each calendar month as set out below:

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(a) Base Rent1. Base Rent means the sum of $ 18,660.80 ($10.70 sq/ft.) per

year, payable in equal monthly installments. Each year of the Lease is subject to a 3% Base Rent increase, in accordance with the below:

• January 1, 2022, to December 31, 2022 (year one) Base Rent = $18,660.80

• January 1, 2023, to December 31, 2023 (year two) Base Rent = $19,220.62

• January 1, 2024, to December 31, 2024 (year three) Base Rent = $19,797.24

• January 1, 2025, to December 31, 2025 (year four) Base Rent = $20,391.16

• January 1, 2026 to December 31, 2026 (year five)Base Rent = $21,002.89

(b) Percentage Rent . 1. Percentage Rent means an amount equal to the

appropriate percentage of the Gross Sales from the Premises in accord with the schedule below:

• January 1, 2022, to December 31, 2022 (year one) Percentage Rent = 16.75 %

• January 1, 2023, to December 31, 2023 (year two) Percentage Rent = 16.75 %

• January 1, 2024, to December 31, 2024 (year three) Percentage Rent = 16.75 %

• January 1, 2025, to December 31, 2025 (year four) Percentage Rent = 16.75 %

• January 1, 2026 to December 31, 2026 (year five)Percentage Rent = 16.75 %

I) Percent Rent to be calculated based on the preceding monthly Gross Sales of the Tenant, to be paid on the 15 th

day of each and every month during the Term of the Lease, except for the first month of January 1, 2022. For clarity the first payment of Percent Rent shall be February 15, 2022.

(c) Utility Fees.The Tenant shall be responsible for paying for metered Gas and telecommunications services.

(d) Additional Rent. In addition to the Base Rent, Percentage Rent and Utility Fees the Tenant shall pay to the Landlord Additional Rent in the manner and upon the conditions and at the times set out in this Lease.

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4. TAXES PAYABLE BY TENANT

(1) The Tenant covenants with the Landlord to pay to the federal, provincial or municipal authority imposing the same, all service, business transfer, transaction value, ad valorem sales, goods and services or other taxes by whatever name called, if any, assessed upon and as a direct result of the payment of Base Rent and Additional Rent hereunder as often as such taxes become due and whether or not such taxes are applicable on the date of the execution of this Lease or become applicable thereafter. In the event that such taxes are by statute, by-law or regulation imposed upon or payable by the Landlord as recipient of the Rent, the Tenant shall reimburse the Landlord for the full amount of such taxes forthwith upon demand (or at any time designated from time to time by the Landlord) as Additional Rent.

5. BUSINESS TAXES AND OTHER TAXES OF TENANT

(1) In addition to the Taxes payable by the Tenant pursuant to Section 4, the Tenant shall pay as Additional Rent to the lawful taxing authorities or to the Landlord, and shall discharge in each Lease Year, when the same become due and payable:

a) All taxes, rates, duties, assessments and other charges that are levied, rated, charged or assessed against or in respect of all improvements, equipment and facilities of the Tenant on or in the Demised Premises or any part or parts thereof, or against the Landlord on account of its ownership thereof or interest therein; and

b) Every tax and licence fee which is levied, rated, charged or assessed against or in respect of any and every business carried on in the Demised Premises or in respect of the use or occupancy thereof by

the Tenant, or against the Landlord on account of its ownership thereof or interest therein, all of the foregoing being collectively referred to as “business taxes” and whether in any case any such taxes, rates, duties, assessments or licence fees are rated, charged or assessed by any federal, provincial, municipal or other body during the Term.

6. ADJUSTMENT OF PERCENTAGE RENT

(1) The Tenant shall submit to the Landlord, monthly, on the date for the payment of the Percentage Rent, a statement in writing signed and verified by the Tenant setting forth the Gross Sales for the preceding calendar month.

(2) By November 15th each year, the Tenant shall provide:

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a) a statement of financial results for the year in a form satisfactory to the Tenant covering its activities under this Agreement.

(3) As soon after the year-end as practical, the tenant shall submit an audited financial statement of the previous year’s results, and the parties agree to undertake any necessary reconciliation of the amounts paid on the basis Percentage Rent, if any.

7. RECORDS

(1) The Tenant shall keep or cause to be kept at such place in the City of Orillia as the Landlord may reasonable designate in writing, accurate records of all business from which the Tenants Gross sales may be accurately determined, and to which the Landlord, its officers, or agents or any auditor or auditors appointed by it shall have access at all times during regular business hours for the purpose of examination or audit, and the Tenant shall furnish to the Landlord such statements, information and other supporting data relating to the Gross Sales as the Landlord may reasonable require. The Landlord agrees not to disclose any information so obtained except to the extent that disclosure is necessary in the conduct of the Landlord’s operations.

8. TERM AND POSSESSION

(1) The Tenant shall have possession of the Premises for a period of five (5) years, commencing on the ___ day of ___, 20__ and ending on the day of ___day _____, 20__ (the “Term”).

(2) Subject to the Landlord’s rights under this Lease, and subject to the terms and conditions set out herein including S e c t i o n 10 of this Lease, as long as the Lease is in good standing, the Landlord covenants that the Tenant shall have quiet enjoyment of the Premises during the Term of this Lease without any interruption or disturbance from the Landlord or any other person or persons lawfully claiming through the Landlord.

(3) It is agreed that if the Tenant duly pays the rent and performs the covenants herein contained, then the Tenant shall have the opportunity to request consideration for a renewal of this Lease. The Tenant shall give to the Landlord at least six (6) months’ notice of its intention to request a renewal prior to the expiration of the term. Extension of this Lease will be at the Landlord’s discretion and such further terms and conditions would be negotiated at that time and must be captured through an executed Lease Amending Agreement.

9. ACCEPTANCE OF PREMISES

(1) The Tenant shall examine the Demised Premises before taking possession, and the commencing of business by the Tenant shall be conclusive evidence

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as against the Tenant that at the time thereof the Demised Premises were in good order and satisfactory condition. The Tenant agrees that there is no promise, representation or undertaking by or binding upon the Landlord with respect to any alteration, remodeling, or decoration of or installation of equipment or fixtures in the Demised Premises other than contained in this Lease.

10. USE

(1) During the Term of this Lease the Premises shall not be used for any purpose other than a bistro café, providing indoor/outdoor dining within in the Leased Premises.

(2) The Tenant shall not do or permit to be done on the Premises anything which may:

(a) constitute a nuisance.

(b) cause damage to the Premises;

(c) cause injury or annoyance to occupants of neighbouring premises;

(d) make void or voidable any insurance upon the Premises;

(e) constitute a breach of any by-law, statute, order, or regulation of any municipal, provincial, or other competent authority relating to the Premises;

(f) cause an encumbrance to be registered or claimed against the Premises and in such event the Tenant agrees, at its own expense and by whatever means may be necessary, to immediately obtain the release or discharge of such encumbrance.

11. REPAIR AND MAINTENANCE

(1) The Tenant covenants that during the Term of this Lease the Tenant shall keep in good condition the Premises including any leasehold improvements permitted, with or without notice, promptly make all needed repairs and all necessary replacements as would a prudent Landlord.

(2) The Tenant shall permit the Landlord or a person authorized by the Landlord to enter the Premises to examine the condition thereof and view the state of repair at reasonable times:

(a) and if upon such examination repairs are found to be necessary, written notice of the repairs required shall be given to the Tenant by

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or on behalf of the Landlord and the Tenant shall make the necessary repairs within the time specified in the notice;

(b) and if the Tenant refuses or neglects to keep the Premises in good repair the Landlord may, but shall not be obliged to, make the necessary repairs, and shall be permitted to enter the Premises, by itself or its servants or agents, for the purpose of effecting repairs without being liable to the Tenant for any loss, damage or inconvenience to the Tenant in connection with the Landlord’s entry and repairs;

(i) and if the Landlord makes repairs the Tenant shall pay the cost of them immediately as Additional Rent.

(3) Upon the expiry of the Term or other termination of this Lease the Tenant agrees peaceably to surrender the Premises to the Landlord in a state of good repair including any and all leasehold improvements and repair any damage caused by the , and leave the Premises in a clean and broom swept condition.

(4) The Tenant shall immediately give written notice to the Landlord of any substantial damage that occurs to the Premises.

( 5 ) T h e T e n a n t s h a l l b e r e s p o n s i b l e t o k e e p t h e W a s h r o o m c l e a n a n d t i d y . T h e L a n d l o r d s h a l l c o n d u c t r o u t i n e c l e a n i n g o f t h e w a s h r o o m f a c i l i t i e s b e t w e e n t h e h o u r s o f 8 : 3 0 a m a n d 4 : 3 0 p m M o n d a y t h r o u g h F r i d a y . T h e T e n a n t s h a l l k e e p m a i n t a i n a n d c l e a n t h e w a s h r o o m a t e v e r y o t h e r t i m e .

(6) The Tenant shall give to the Lessor prompt written notice of any accident or any defect in the water pipes, gas pipes, heating apparatus, telephone or electric light, or other wires in any part of said building.

12. RESPONSIBILITIES OF THE LANDLORD

(1) The Landlord shall be responsible for capital repairs to the exterior of the building on the Premises and for repairs to:

(a) the HCVAC system(b) electrical system;(c) plumbing system.

(2) The Landlord is responsible for yard maintenance and snow removal.

Provided that the above such repairs do not arise from the negligence or wilful fault of the Tenant. Capital repairs, including replacements, are those which an

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accountant, acting in accordance with generally accepted accounting principles, would capitalize and apportion annually over the expected lifetime of the repair or as otherwise permitted under the Income Tax Act of Canada. Any upgrades to the HVAC system installed by the Tenant shall be the responsibility of the Tenant provided that any such upgrades receive the prior written approval of the Landlord, such approval not to be unreasonably withheld.

13. ALTERATIONS AND ADDITIONS/LEASEHOLD IMPROVEMENTS

(1) The Tenant shall not undertake any alterations in or to the Demised Premises or any part thereof without obtaining the prior written consent of the Landlord, which consent can be unreasonably withheld, provided any alterations shall be made by contractors approved by the Landlord and provided further that such consent may be withheld if Landlord has not received plans showing the proposed alterations, requisite permits authorizing such alterations and details of the contractor or business conducting the alterations. No alterations of a structural nature may be undertaken. Tenant shall forthwith pay as Additional Rent all fines, costs and expenses incurred by Landlord in connection with Tenant’s failure to obtain all requisite permits.

(2) All equipment, fixtures and improvements installed by the Tenant in the Leased Premises shall be new or completely reconditioned.

(3) All alterations, decorations, additions, and improvements made by the Tenant or made by the Landlord on the Tenant’s behalf by agreement under this Lease shall remain the property of the Tenant for the Term thereof. Such alterations, additions, and improvements shall not be removed from the Demised Premises without the prior consent in writing from the Landlord, which consent shall not be unreasonably withheld or delayed. Upon expiration or termination of this Lease, the Tenant shall remove all decorations and Tenant’s trade fixtures and equipment, repairing any damage caused by such removal, and otherwise leave the Premises in their improved condition, save and except for structural defects or weaknesses or reasonable wear and tear. In the event that the Tenant defaults in its obligations in this Section 13 the Landlord may correct such default and any costs incurred in doing so shall be paid by the Tenant forthwith as Additional Rent.

14. INSURANCE

(1) The Tenant agrees to maintain during the term of this Lease insurance coverage insuring against:

(a) loss or damage by perils as are commonly provided under an “all risks” property policy with respect to damage to the Premises

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including the permitted sign and planters as may be reasonably required by the Landlord; and

(b) liability for bodily injury or death or property damages sustained by third parties with respect to the Premises with a minimum limit of Five Million Dollars ($5,000,000.00) per occurrence.

(2) Such insurance coverage shall show the Landlord as an additional insured and the insurance coverage shall include a cross-liability endorsement.

(3) Such insurance coverage shall require the insurer to give the Landlord a minimum of thirty (30) days written notice prior to cancellation of the insurance coverage.

(4) The Tenant shall provide a copy of the insurance coverage required herein to the Landlord prior to the execution of this Lease by the Landlord and proof of continuing coverage on or before the expiration of each policy year.

15. INDEMNIFICATION

(5) The Tenant agrees to assume all liability and obligation for any and all loss, damage or injury (including death) to persons or property that would not have happened but for this Lease or anything done or maintained by the Tenant hereunder and the Tenant shall at all times indemnify and save harmless the Landlord from and against all loss, damage or injury and all actions, suits, proceedings, costs, charges, damage, expenses, claims or demands arising therefrom or connected therewith provided that the Tenant shall not be liable under this provision to the extent to which such loss, damage or injury is caused or contributed to by the negligence or willful misconduct of the Landlord.

16. ASSIGNMENT

(6) The Tenant shall not assign this Lease or sublet the whole or any part of the Premises unless first obtaining the written consent of the Landlord which can be unreasonably withheld by the Landlord.

(7) The consent of the Landlord to any assignment or subletting shall not operate as a waiver of the necessity for consent to any subsequent assignment or subletting.

(8) Any consent granted by the Landlord shall be conditional upon the assignee, sublessee or occupant executing a written agreement directly with the Landlord agreeing to be bound by all the terms of this Lease as if the assignee, sublessee or occupant had originally executed this Lease as Tenant.

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(9) Any consent given by the Landlord to any assignment or other disposition of the Tenant’s interest in this Lease or in the Premises shall not relieve the Tenant from his obligations under this Lease, including the obligation to pay Rent and Additional Rent as provided for herein.

(10) If the party originally entering this Lease, or any party who subsequently becomes the Tenant by way of assignment or sublease or otherwise as provided for in this Lease, is a corporation then:

(a) the Tenant shall not be entitled to deal with its authorized or issued capital or that of an affiliated company in any way that results in a change in the effective voting control of the Tenant unless the Landlord first consents in writing to the proposed change;

(b) if any change is made in the control of the Tenant corporation without the written consent of the Landlord then the Landlord shall be entitled to treat the Tenant as being in default and to exercise the remedies stipulated in S e c t i o n 19 of this Lease and any other remedies available in law;

(c) the Tenant agrees to make available to the Landlord or his authorized representatives the corporate books and records of the Tenant for inspection at reasonable times.

17. TENANT’S COVENANTS

The Tenant covenants and agrees with the Landlord as follows:

To Pay Rent and Perform Covenantsa) that the Tenant shall pay to the Landlord in the manner specified herein,

without any deduction, set-off or abatement except as provided herein, all Base, Percentage Rent and Additional Rent hereby reserved and all other amounts which are collectible by the Landlord, and in the event that the Tenant shall fail to pay any such amount when due and payable hereunder such amount shall bear interest at the rate of 12% per annum until paid. The Tenant shall observe and perform all terms and provisions of the Lease on its part to be observed and performed and shall not do or suffer to be done anything contrary to any term or provision hereof except as provided for in this Lease;

. Noise, etc.

b) that the Tenant shall not use or permit any part of the Demised Premises to be used in such manner as to cause annoying noises or vibrations or offensive odours. If the Demised Premises at any time become infested with vermin, the Landlord may remove such infestation at the expense of the Tenant, payable forthwith upon demand as Additional Rent;

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Personal or Consequential Injury

c) that the Landlord shall not be liable or responsible in any way for any injury of any nature whatsoever that may be suffered by the Tenant or any employee, agent or customer of the Tenant or any other person who may be upon the Demised Premises, or for any loss of or damage or injury to any property belonging to the Tenant or to its employees or to any other person while such property is on the Demised Premises, and in particular, but without limiting the generality of the foregoing, the Landlord shall not be liable for any damage or damages of any nature whatsoever to any such property caused by the failure by reason of breakdown or other cause, to supply adequate drainage, snow or ice removal, or by the interruption of any public utility or service or by water, rain, snow or other substances leaking into, issuing or flowing into any part of the Demised Premises or from the water, sprinkler or drainage pipes or plumbing works of the same or from any other place or quarter or for any damage caused by anything done or omitted by any tenant. The Tenant shall not be entitled to any abatement of rent in respect of any such condition, failure, or interruption of service, and the same shall not constitute an eviction. This Paragraph shall not relieve the Landlord from liability for any loss, damage or injury caused by or contributed to by the Landlord’s gross negligence or conduct, latent defects in the structure or breaches of this Lease by the Landlord.

Indemnification of Landlordd) to indemnify and save harmless the Landlord of and from all fines, suits,

claims, demands and actions of any kind or nature to which the Landlord shall or may become liable for or suffer in connection with any matter referred to in sub-Section c) of this Section 15 and by reason of any breach, violation or non-performance by the Tenant of any covenant, term or provision of this Lease or by reason of any injury occasioned to or suffered by any person or persons or any property by reason of any wrongful act, neglect or default on the part of the Tenant or any of its employees except for such as are caused or contributed to by the Landlord’s gross negligence or conduct, latent defects in the structure or breaches of this Lease by the Landlord.

Failure to Pay Taxes, etc.e) that in the event the Tenant shall fail to pay any taxes, rates or charges

which it has herein covenanted to pay and which shall constitute a lien or charge upon the Demised Premises the Landlord, after the expiration of ten (10) days’ notice to the Tenant within which such default shall not have been cured, may pay all or any of which the same and all of such payments so made shall constitute Additional Rent forthwith payable provided that where there is a bona fide dispute of the amount or propriety of any payment alleged to be due from the Tenant, the Landlord shall not pay the same until such a dispute has been resolved by agreement of the Tenant or by competent authority, whichever is earlier in date.

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Increase in Insurance Premiumsf) that if the Tenant does or permits to be done or omitted upon the Demised

Premises anything which shall cause an increase in the rate of any insurance upon the Demised Premises or any part thereof, the Landlord may, at its option, compel the Tenant to restore the Demised Premises to the condition they were in prior to such act or permit the Tenant to continue to do such act, in which case the Tenant shall pay the Landlord the amount by which the insurance premiums in respect of the Demised Premises or any part thereof shall have been increased. It is agreed that if any insurance policy upon the Demised Premises or any part thereof shall be cancelled or the coverage thereunder reduced in any way by the insurer, or if such action if threatened, by reason of the use and occupation of the Demised Premises or any part thereof by the Tenant, or by anyone permitted by the Tenant to be upon the Demised Premises, the Tenant shall forthwith remedy the condition giving rise to such cancellation or reduction of coverage or threatened cancellation or reduction.

Changes in Electrical, etc.g) if the Tenant wishes to install any electrical or other equipment which may

overload the electrical or other service facilities, the Tenant shall at its own expense make whatever changes are necessary to comply with the reasonable and lawful requirements of the insurance underwriters and governmental authorities having jurisdiction, but no changes shall be made by the Tenant until the Tenant first submits to the Landlord plans and specifications for the proposed work and obtains the Landlord’s written approval to make the same.

Loadingh) all loading and unloading of merchandise, supplies, materials, garbage,

refuse and other chattels shall be made through or by means of the staff/rear loading entrance. The Tenant shall advise the Landlord in advance of any movement of significant amounts of materials and the Landlord shall advise the Tenant, in writing, of the appropriate loading procedures.

Government Regulationsi) the Tenant shall, at the Tenant’s sole cost and expense, comply with all

laws, orders, rules and regulations of all municipal, provincial, federal and other applicable governmental authorities, now in force, or which hereafter may be in force, pertaining to the Demised Premises, if they relate to the Tenant’s use of the Demised Premises.

Tenant to Carry on Businessj) to carry on that business permitted under this Lease in the Demised

Premises and in the event that the Tenant abandons the Demised Premises or ceases to conduct business therein, for a period of twenty (20)

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consecutive business days other than for the purposes of renovation or repairing of the Demised Premises the Tenant shall be in default hereunder;

18. SPECIAL PROVISION

(1) The Tenant covenants that they will comply with the Terms of Agreement set out in Schedule "B" attached hereto, such terms to form a part of this Lease Agreement.

(2) The Tenant expressly acknowledges and agrees that on the following dates:

1. February 25 and 26, 2022 2. March 23, 2022 3. June 11, 20224. July 23, 20225. August 19 and 20, 20226. August 27, 2022; and7. September 9 and 10, 2022.

The Landlord will be allowed to use and the enter and use Demised Premises for its own purpose. The Tenant will not be able to operate its Use during the above time periods. The Tenant agrees to cooperate with the Landlord to allow unfettered and unrestricted access to the Premises during the above noted dates. In exchange for the same Base Rent and Utilities will be abated for that time period only. No further compensation, or abatement shall be rewarded to the Tenant for the same. [NTD: TO BE DISCUSSED WITH PROPOSED TENANT]

________________TENANT INITIALS

19. ACTS OF DEFAULT AND LANDLORD’S REMEDIES

a) The failure of the Tenant to pay any Base Rent, Percentage Rent, Additional Rent, or any other sum payable hereunder, on the date appointed for the payment thereof shall constitute a default hereunder and should such default continue for a period of ten (10) days the Landlord may elect to re-enter the Demised Premises.

b) The failure of the Tenant to observe or perform any of the terms, covenants, conditions, and agreements of this Lease to be observed or performed by the Tenant shall constitute a default hereunder. Should such default continue for a period of twenty (20) days after written notice to the Tenant specifying with reasonable particularity the nature of such default and requiring the same to be rectified, the Landlord may elect to re-enter the Demised Premises. Provided however, if within such twenty (20) day period the Tenant commences and

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proceeds diligently to completion and in fact cures such default, the Tenant shall be permitted such loner time as reasonably required due to the nature of the default to complete and cure the same. In the event of such default, the Landlord shall have the right, without effecting a re-entry or re-taking of possession of the Demised Premises, to enter upon the Demised Premises for the purpose of rectifying the default for the account of the Tenant, and in such event shall not be liable to the Tenant for any loss or damage to the Tenant’s merchandise or business caused by acts of the Landlord in so remedying the default or neglect of the Tenant. If the Landlord at any time is compelled or elects to pay any sum of money or do any act which would require the payment of any sum of money by any reason of the failure of the Tenant to comply with any provision of this Lease or if the Landlord is compelled or elects to incur any expense, including legal fees, by reason of any default of the Tenant under this Lease, the sum or sums, including legal fees on a solicitor and client basis, so paid by the Landlord, with all interest, costs, and damages, shall be deemed to be Additional Rent hereunder and shall be paid by the Tenant to the Landlord upon demand.

c) Should the Landlord elect to re-enter the Demised Premises as set forth in subsections (a) or (b) above or should it take possession pursuant to legal proceedings, or pursuant to any notice provided for by law, the Landlord may without further notice or any form of legal process whatsoever forthwith re-enter upon the Demised Premises or any part thereof in the name of the whole. The Tenant acknowledges and agrees that the Landlord shall be entitled to retain a key (to be provided by the Tenant, in the event that the Tenant changes the locks for the Demised Premises with the permission of the Landlord) for the Demised Premises for the purpose of effecting re-entry upon the Demised Premises in accordance with the terms of this Lease.

d) Should the Landlord re-enter the Demised Premises it may elect to declare the Term and this Lease to be forfeited and void and the Landlord may re-possess and enjoy the Demised Premises as of its former estate anything contained in any stature or law to the contrary notwithstanding. Such forfeiture shall be wholly without prejudice to the right of the Landlord to recover arrears of Rent or damages for any antecedent default under this Lease, and provided further that the Landlord may subsequently recover from the Tenant damages for loss of Base Rent and Additional Rent suffered by reason of this Lease having prematurely terminated.

e) Should the Landlord re-enter the Demised Premises it may from time to time without terminating this Lease, make such alterations and repairs as may be necessary in order to relet the Demised Premises, and relet the Demised Premises or any part thereof as agent for the Tenant for such Term or Terms (which may be for a Term extending beyond the Term of this Lease) and at such rental or rentals and upon such other terms and conditions as the Landlord in its sole discretion may deem advisable. Upon each shall be applied: first, to the payment of any indebtedness other than Base Rent and Additional Rent due hereunder form the Tenant to the Landlord; second, to the repayment of any costs and expenses of such reletting, including brokerage fees and solicitors’ fees and the costs of such

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alterations and repairs; third, to the payment of Base Rent and Additional Rent due and unpaid hereunder; and the residue, if any shall be held by the Landlord and applied in payment of future Base and Additional Rent as the same may become due and payable hereunder, If such Base Rent and Additional Rent received from such reletting during any month be less than that to be paid during that month by the Tenant hereunder, the Tenant shall pay any such deficiency to the Landlord. Such deficiency shall be calculated and paid monthly; however, if there is an excess on hand held by the Landlord, the deficiency shall be deducted from the excess before the Tenant shall be required to pay any such deficiency.

f) No such re-entry or taking possession of the Demised Premises by the Landlord shall be construed as an election on its part to terminate this Lease unless a written notice of such intention be given to the Tenant or unless the termination thereof be decreed by a court of competent jurisdiction. Notwithstanding any such reletting without termination, the Landlord may at any time hereafter elect to terminate this Lease for such previous breach.

g) Should the Landlord at any time terminate this Lease for any breach, in addition to any other remedies it may have, it may recover from the Tenant all damages it may incur by reason of such breach, including the cost of recovering the Demised Premises, and including the worth at the time of such termination of the Excess, if any, of the amount of Base Rent and Additional Rent reserved in this Lease for the remainder of the Term hereof over the then reasonable rental value of the Demised Premised of the remainder of the Term hereof, all of which amounts shall be immediately due and payable from the Tenant to the Landlord.

h) In case an action shall be brought for recovery of possession of the Demised Premises, for the recovery of Base Rent and Additional Rent or any other amount due under the provisions of this Lease, or because of the Breach of any other covenant herein contained on the part of the Tenant to be kept or performed and a breach shall be established, the Tenant shall pay to the Landlord all expenses incurred therefor, including reasonable solicitors’ and counsel fees on a solicitor and his own client basis, unless the presiding judicial official determines otherwise.

20. NON-REGISTRATION OF LEASE

(1) The Tenant agrees that this Lease or any Notice of Lease shall not be registered on the title to the Premises in the Land Registry Office.

21. NOTICE

(1) Any notice required or permitted to be given by one party to the other pursuant to the terms of the Lease may be given

(d) To the Landlord at:

50 Andrew Street South, Suite 300 Orillia, ON, L3V 7T5

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Attention: Jay Gronc Manager of Real Estate Email: [email protected]

(e) To the Tenant at:

(2) The above addresses may be changed at any time by giving ten (10) days written notice in the same manner as set out herein.

(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 given and received on the date delivered if the notice is delivered personally or seventy-two (72) hours after mailing if the notice is mailed by prepaid registered post.

22. RIGHT TO SHOW THE PREMISES

(1) THAT the Tenant will permit the Landlord to exhibit the Demised Premises during the last three months of the term to any prospective tenant and will permit all persons having written authority therefor to view the said premises at all reasonable hours.

23. SECURITY DEPOSIT

(1) The Tenant agrees to maintain the security deposit of $2,000 presently on deposit with the City which may be used to satisfy an of the obligations of the Tenant under the terms of this Agreement; provided, however, that such security deposit shall not in any way limit the extent of the liability of the Tenant. Such security deposit shall be returned upon the terms described in the lease, if any left and with no interest accrued on the same.

24. NET LEASE

(1) The Tenant acknowledges that it is intended and agreed that this Lease is a completely carefree net lease, for the Landlord and that the Landlord is not responsible during the Term or any renewals thereof, for any costs, charges, expenses or outlays of any nature relating to the Premises or the contents thereof, or otherwise, except as specifically set forth in this Lease or as required under applicable law, and that the Tenant will pay all charges, taxes, impositions, costs and expenses of every kind relative to the Premises as specifically set forth in this Lease and not otherwise required to be paid for by Landlord under this Lease, and the Tenant covenants with the Landlord accordingly.

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25. TERMINATION OF LEASE

(1) In addition to the foregoing rights of cancellation for default by the Tenant, this Lease Agreement may be cancelled by the Landlord upon the giving of sixty (60) days prior written notice of such termination and the Landlord shall not be liable for any costs or damages of any nature arising from such termination.

26. SURRENDER

(1) The Tenant will at the expiration or sooner termination of the said term, and/or any renewals thereof peaceably surrender and yield up to the Landlord the demised premises together with all the building, structures and improvements thereon in good and substantial repair and condition as first restaurant premises as they would be kept by a reasonably careful Landlord as first class commercial premises.

27. LIENS

(1) The Tenant will ensure that no construction or other lien or charge, or notice thereof, is registered, or filed against:

(a) the Leased Premise or any part of it;(b) any interest in all or part of the Leased Premises of the Landlord or any Landlord of the Premises; or(c) the Tenant's interest in the Leased Premises or any of the

leasehold improvements in the Leased Premises;

by any person claiming by, through, under or against the Tenant or its contractors or subcontractors. If such a lien or charge or notice thereof is registered or filed and the Tenant fails to discharge it within five (5) days after written notice from the Landlord, the Landlord may discharge it by paying the amount claimed to be due into court or directly to the claimant and the Tenant will pay to the Landlord as Additional Rent on demand all costs (including legal fees) incurred by the Landlord in connection therewith, together with an administrative overhead charge of fifteen percent (15%) thereon.

28. DAMAGE TO PREMISES

a) If and whenever the Premises shall be destroyed, demolished or damaged by fire or other cause to such an extent that the same shall not be capable with due diligence of being repaired, and restored or rebuilt within a period of 150 days after

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the happening of such destruction, demolition or damage, then the Landlord may terminate this lease upon 30 days’ written notice to the Tenant given within 45 days of the date of such destruction, demolition, or damage, and the Tenant shall thereupon immediately surrender the Demised Premises and this Lease to the Landlord and rent shall be apportioned to the date of such damage, demolition, or destruction.

b) If the Demised Premises are destroyed, demolished or damaged by fire or other cause and notice to terminate this Lease shall not have been duly given as provided under this Section, the Landlord shall repair the Demised Premises with all reasonable speed, and (i) if the destruction, demolition or damage is such as to render the Demised Premises wholly unfit for occupancy all rent under this Lease shall cease from the time of the occurrence thereof until the substantial completion of repairs to the Demised Premises by the Landlord; (ii), if the destruction, demolition or damage is such that the Demised Premises can be partially used by the Tenant all rent hereunder shall be payable in accordance with the terms hereof, provided that the Base Rent payable during the whole or part of the period during which the Demised Premises may be only partially used by the Tenant, shall abate according to the nature and extent of the destruction, demolition or damage from the time of the occurrence of such destruction, demolition or damage until the substantial completion of repairs to the Demised Premises by the Landlord; and (iii) upon substantial completion of repairs to the Demised Premises by the Landlord all rent under this Lease shall recommence within 45 days, or upon the opening of the Demised Premises for business, whichever is the earlier.

c) The Landlord’s obligation to repair under the provisions of this Section 28 shall not extend to the repair, reconstruction, or replacement of the Tenant’s trade fixtures or any Tenant’s work. Upon certification by the Landlord’s architect of substantial completion of repairs to the Demised Premises by the Landlord, the Tenant shall re-take possession of the Demised Premises for the purpose of fixturing and reconstruction of the Tenant’s work for a period of up to 45 days, or until the opening of the Demised Premises for business, whichever is the earlier, at which time all rent under this Lease shall recommence.

d) Any question as to the extent of the damage to or destruction of the Premises shall be determined by the Landlord’s Architect whose decision shall be final and binding.

29. ASSIGNMENT BY LANDLORD

(1) In the event of the sale or lease by the Landlord of the Premises or a portion thereof containing the Premises or the assignment by the Landlord of this Lease or any interest of the Landlord hereunder, and to the extent that such purchaser, lessee under such lease or assignee shall have assumed the covenant and obligations of the Landlord hereunder, the Landlord shall, without further written agreement, be freed and relieved of

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liability upon such covenants and obligations. The Tenant shall form time to time at the request of the Landlord certify or acknowledge to any mortgagee, purchase, lessee, or assignee or proposed mortgagee, purchaser, lessee, or assignee, as to the status and validity of this Lease and the state of the Landlord’s and Tenant’s account hereunder, within seven (7) days from receiving notice of the requirement of such a certificate or acknowledgement.

30. EXEMPTION RE DISTRESS

(1) The Tenant hereby covenants and agrees with the Landlord that in consideration of the premises, and of the leasing and letting by the Landlord to the Tenant of the Demised Premises for the Term hereby created (and it is upon that express understanding that these presents are entered into) that notwithstanding anything contained in any existing statute or any other statute which may hereafter be passed to replace an existing statute, or amendments to existing statutes, (collectively “existing statutes”) none of the goods or chattels of the Tenant at any time during the continuance of the Term hereby created on the Demised Premises shall be exempt from the levy by distress for rent in arrears by the Tenant as provided for by any section of sections of existing statutes or any amendment or amendments thereto, and that upon any claim being made for such exemption by the Tenant or on distress being made by the Landlord this covenant and agreement may be pleaded as an estoppel against the Tenant in any action brought to test the right to the levying upon any such goods as are name as exempted in said section or sections or amendment or amendments thereto, the Tenant waiving, as it hereby does, all and every benefit that could or might have accrued to it under and by virtue of the said section or sections of the existing statutes or any amendments thereto but for the above covenant.

31. BANKRUPTCY OF TENANT

(1) If the Tenant shall be adjudicated a bankrupt or adjudged to be insolvent, or a receiver for trustee of the Tenant’s property and affairs shall be appointed, or if the Tenant shall make an assignment for the benefit of creditor or shall file a petition in bankruptcy or insolvency or for the appointment of a receiver, or if any execution or attachment shall be issued against the Tenant or any of the Tenant’s property whereupon the Demised Premises or any potion thereof shall be taken or occupied or attempted to be taken or occupied by someone other than the Tenant and such execution or attachment shall not be set aside, vacated, discharged or bonded within 15 days after the issuance of same of same or fixtures out of the Demised Premises, then, in any of such events, the then current month’s rent and rent for the next 3 ensuing months shall immediately

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become due and be paid and this Lease may at the option of the landlord be cancelled and terminated, whether or not the Term has commenced or whether or not any rent has been prepaid. For the purposes of this Lease accelerated rent shall include all amounts payable by the Tenant as Base Rent and Additional Rent and shall be calculated on the basis of the average of the amounts thereof so paid by or payable by the Tenant for each month during the period of 12 months immediately preceding such termination or during the expired Term of this Lease if less than 12 months. If this Lease shall be so cancelled and terminated, neither the Tenant nor any person claiming through or under the Tenant by virtue of any stature or order of any court shall be entitled to possession or to remain in possession of the Demised Premises but shall forthwith quit and surrender the Demised Premises, and the Landlord in addition to other rights and remedies the Landlord has by virtue of any other provisions of this Lease or of any statute or rule of law may retain on account of liquidated damages any rent, security, deposit or monies received by it from the Tenant or others on behalf of the Tenant.

32. NON-WAIVER OF DEFAULT

(1) The waiver or acquiescence of the Landlord in any default by the Tenant under any paragraph, sub-paragraph, clause or sub-clause of this Lease shall not be deemed to be a waiver of such paragraph, sub-paragraph, clause of sub-clause of any subsequent or other default hereunder.

33. EXPROPRIATION

a) If the whole of the Premises shall be expropriated for any public or quasi-public use or purpose then the Term of this Lease shall cease and terminate upon possession being required and all rentals shall be paid up to that date and the Tenant shall have no claim against the Landlord for the value or any unexpired Term of this lease or for damages or for any other reason whatsoever.

b) In the event that either any part of the Premised or 50 percent or more of the total leasable area of the Premises shall be expropriated by any lawful expropriating authority, then the Landlord shall have the right to be exercised by notice in writing to the Tenant within 120 days next following such expropriation to elect to cancel and terminate this Lease. Upon the giving of such notice to the Tenant, the terms of this Lease shall cease and terminate as of the date actual physical possession shall be taken and all rentals and charges shall be paid up to that date and the Tenant shall have no claim against the Landlord for the value of any unexpired Term of this Lease for damages or for any other reason whatsoever. In the event that the Landlord does not so elect to cancel this Lease, by notice as aforesaid, the Tenant shall have no claim against the Landlord

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for the value of any unexpired Term of this Lease and rent shall be adjusted as of the date of termination.

c) If the whole or any part of the common areas shall be acquired or expropriated as aforesaid, the Landlord shall have the right to be exercised by notice in writing to the Tenant within 120 days next following such expropriation to elect to cancel and terminate this Lease and in the event that the Landlord so elects to terminate this Lease, the Term of this Lease shall cease and terminate upon the vesting of title in such proceeding in the event of termination of this Lease as aforesaid, the Tenant shall have no claim against the Landlord for the value of any unexpired Term of this Lease and rent shall be adjusted as of the date of the termination.

d) In the event of any expropriation or taking as aforesaid whether whole or partial, the Tenant shall not be entitled to any part of the award or compensation paid for such expropriation and the Landlord is to receive the full amount of such award of compensation, the Tenant hereby expressly waiving any right or claim to any part thereof.

e) The Tenant shall have the right to claim and recover from the expropriating authority, but not from the Landlord, such compensation as may be separately awarded or recoverable by the Tenant in the Tenant’s own right on account of any and all damage to the Tenant’s business by reason of the expropriation and for or on account of any cost or loss to which Tenant might be put in removing the Tenant’s merchandise, furniture, fixtures, leasehold improvements and equipment.

34. FORCE MAJEURE

(1) In the event that either party hereto shall be delay or hindered from the performance of any act required hereunder by reason of strikes, lock-outs, labour troubles, inability to procure materials, failure of power, restrictive government laws or regulations, riots, insurrection, war, pandemic or other reason of a like nature not the fault of the party delayed in performing work or doing acts required under the terms of this Lease, then the performance of such act shall be excused for the period of the delay and the period for performance of any such act shall be extended for a period equivalent to the period of such delay. Notwithstanding anything herein contained, the provisions of this paragraph shall not operate to excuse the Tenant from the prompt payment of Rent or any other payments required by the terms of this Lease, nor entitle the Tenant to compensation for any inconvenience, nuisance, or discomfort they occasioned.

35. HOLDING OVER

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(1) In the event the Tenant remains in possession of the Premises after the end of the term and without the execution and delivery of a new lease, there shall be no tacit renewal of this Lease and the Term hereby granted, the Tenant shall be deemed to by occupying the Premises as Tenant for moth to moth at a monthly rent payable in advance on the first day for each month equal to the sum of:

As Base Rent, an amount equal to twice the amount of Base Rent payable during the last month of the Term;

and otherwise the same terms and condition as set forth in this Lease, so far as applicable.

36. SUCCESSORS

(1) All rights and liabilities herein given to, or imposed upon, the respective parties hereto shall extend to and bind the assigns of the said parties, and if there shall be more than one Tenant, they shall be bound jointly and severally by the terms, covenants and agreements herein. No rights, however, shall enrue to the benefit of any assignee of the Tenant unless the assignment to such assignee has been approved by the Landlord in writing as provided in Section 16 herein.

37. TIME OF ESSENCE

(1) Time shall be of the essence of this Lease except as specified herein.

38. AMENDMENT

(1) This Lease may not be modified or amended except by an instrument in writing signed by the parties hereto or by their successors or assigns.

39. OTHER REPRESENTATIONS

(1) This Lease and the Schedules hereto constitute the entire agreement between the Landlord and Tenant and neither party is bound by any representation, warranty, promise, agreement, or inducement not embodied herein or therein.

40. GOVERNING LAW

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(1) This Lease shall be governed by and construed according to the laws of the Province of Ontario.

41. INDEPENDENT LEGAL ADVICE

(1) Each of the parties hereby acknowledges that it has been afforded the opportunity and sufficient time to obtain independent legal advice and confirms by the execution of the Agreement that they have either done so or waived their right to do so in connection with the entering into of this Agreement.

42. NO RELATIONSHIP FORMED

(1) Nothing contained herein shall be deemed or construed by the parties hereto nor by any third party as creating the relationship of principal and agent or of partnership or of a joint venture between the parties hereto, it being understood and agreed that neither any provision contained herein, nor nay acts of the parties hereto, shall be deemed to create any relationship between the parties hereto other than the relationship of Landlord and Tenant.

43. GUARANTORS

(1) In consideration of the sum of $1.00 paid by each party to the other, the receipt and sufficiency of which is hereby acknowledged, [Name of Personal Guarantor] hereby personally guarantee’s payment of Rent by the Tenant and performance of all covenants and obligations of the Tenant in accordance with this Lease as principal and not as surety for the Tenant, for the duration of the Term of the Lease. In the event the Lease is assigned, the Landlord will give reasonable consideration to releasing the Guarantor if satisfied with the strength of the covenant of the Assignee.

44. ARBITRATION

(1) In the event of any dispute arising under this Lease (the "Dispute") the parties shall use their best efforts to settle same. To this effect, they shall consult and negotiate with each other, in good faith and understanding of their mutual interests, to reach a just and equitable solution satisfactory to all parties promptly following notice of the Dispute and, if they do not reach such solution within thirty (30) days thereafter, then either party may deliver notice (the "Arbitration Notice") to the other party requiring resolution by arbitration and thereafter the Dispute, shall be referred to arbitration for final settlement binding on all parties in accordance with the provisions of the Arbitration Act, 1991 (Ontario) as follows:

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(i) The arbitration tribunal shall consist of one arbitrator appointed by mutual agreement of the parties or, in the event of failure to agree within ten (10) days after delivery of the Arbitration Notice, any party may apply to a judge of the Ontario Superior Court of Justice to appoint an arbitrator. The arbitrator shall be qualified by education and training to pass upon the particular matter to be decided.

(ii) The arbitrator shall be instructed that time is of the essence in proceeding with the determination of the Dispute.

(iii) The arbitration shall be conducted in English and shall take place in Orillia, Ontario.

(iv) The arbitration award shall be given in writing and shall be final and binding on the parties, not subject to any appeal, and shall deal with the question of costs of arbitration and all matters related thereto.

45. INTERPRETATION

(1) The words importing the singular number only shall include the plural, and vice versa, and words importing the masculine gender shall include the feminine gender, the words importing persons shall include firms and corporations and vice versa.

(2) Unless the context otherwise requires, the word "Landlord" and the word "Tenant" wherever used herein shall be construed to include the successors and assigns of the Landlord and the permitted assigns of the Tenant, respectively.

IN WITNESS of the covenants contained herein, the parties hereto have executed this Lease on the following dates:

By the Landlord on the day of ____________, 2021

THE CORPORATION OF THE CITY OF ORILLIA(Landlord)

_____________________________________Per: Manager of Real Estate

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“I have authority to bind the corporation.”

By the Tenant on the day of ___________, 2021

(Tenant)

_____________________________________Per:

“I have authority to bind the corporation.”

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SCHEDULE “A” TO LEASE BETWEEN T H E CORPORATION OF THE CITY OF ORILLIA (LANDLORD) AND _______________________ (TENANT)

THE DEMISED PREMISES

Swanmore Hall (Grey Shaded Areas represent the Demised Premises)

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SCHEDULE “B” TO LEASE BETWEEN THE CORPORATION OF THE CITY OF ORILLIA (LANDLORD) AND _________________ (TENANT)

The Tenant will adhere to the following:

1. AdvertisingOn site Restaurant advertising is limited to the space of the Premises and is subject to approval of the Landlord. No signage or advertising may be fixed to the walls of the Leased Premises, whether interior or exterior, without the permission of the Landlord.

The Landlord will make every effort to provide mention or presence for the Tenant on selected museum related signage and on electronic platforms such as its website, Facebook page etc., as appropriate.

Both parties will meet in the fourth quarter to develop a joint marketing strategy for the following year, which can be updated as required.

2. ChangesIf during the term of this agreement, should major changes occur in the use and operation of the facilities, which have a significant effect on the operation of the restaurant/bar area, then this agreement shall be reviewed and if necessary, changes will be made that are acceptable to both parties.

3. Compliance with By LawsComply strictly with all applicable by-laws, rules and regulations governing the conduct and operation of the business of the Tenant.

4. Restaurant Keys and AccessA key to the Premises will be provided by the Landlord for the exclusive use of the Tenant. Additional keys will be provided on an as needed basis.

The Landlord will provide the Tenant with an alarm access code for the purpose of arming and disarming the security alarm system for the Leased Premises. Such codes and access procedures are strictly confidential and may not be communicated in any form by the Tenant to persons other than those specifically designated by the Tenant and approved by the Landlord.

5. DeliveriesEnsure that equipment and inventories are delivered to and received directly by the Tenant and/or his/her representative at their normal place of business, or in person at the facility named in this Agreement. In the event that the Tenant is absent at a delivery time, Leacock Museum staff shall be

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authorized by the Tenant to accept orders and are indemnified by the Tenant relative to this acceptance. Storage space is limited to those areas currently available.

6. GarbageDispose of all food and bar garbage in disposal bins provided by the Landlord and located at the rear of the Leased Premises.

Tenant is responsible for the disposal for items such as grease, cardboard and all other recyclable materials including their preparation and proper placement for pickup as required.

All charges associated with the disposal of grease, cardboard, and other recyclable materials to be borne by the Tenant.

7. EquipmentAny City owned equipment loaned to the Tenant in its 'as is' condition will be set out in Appendix “A” and the Tenant will be responsible for costs associated with its upkeep, cleaning, servicing, and repairs related to the Tenant's use.

The Tenant must agree to leave the equipment in good working order at the end of the contract or replace with an equivalent that is acceptable to the City. The final determinations, relative to equipment, will be made by the Museum Coordinator, Manager of Culture or their designate.

Replacement equipment, modifications and repairs made will automatically become the property of the City of Orillia.

8. Food SalesIt should be noted that food sales relate to the food sold within the Leased Premises only. From time to time, there may be food sales by other suppliers via a Facility Permit on events on the museum grounds or in the Leacock Home proper (e.g. for special occasions, festivals, or meetings). Also, it should be noted that the City of Orillia Food and Vending policy permits individuals or family members to take single-serving sized beverages and/or snacks for their own consumption on the Leacock Museum premises for public, non-ticketed events.

9. Health and SafetyBe aware of and conform to the Occupational Health and Safety Act. The Tenant shall be subject to City's health and safety inspections of food and bar areas.

The Tenant will be in compliance with and abide by all aspects of the City of Orillia

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- Contractor Compliance guidelines and requirements.

10. Hours of Normal Operation

The Leases will provide the City with a schedule of regular hours for the restaurant operation to the public. The schedule shall include normal work week hours and hours for statutory holidays. The City and the Leases will work co-operatively to establish hours that will best serve the needs at this location. The below are considered minimums, the Tenant is encouraged to be open for an amount that maximizes their own business needs.

Seasonal Operations:a. Between May 15 and August 31, the hours of operation for food

service shall be daily from 10 a.m. to 4 p.m.

Non Seasonal Hours:a. Between September 1 and May 14, the hours of operation for food

service shall be Monday through Friday from 10 a.m. to 4 p.m.

Regularly established hours of operation can be modified to accommodate special events in the building as required if both parties are in agreement but should only be done as a last resort if no other options are available to ensure regular bistro service.

Any activities limiting the regularly established hours of operation and initiated by the Leases must be approved by the Landlord in writing.

Changes to the regularly established hours initiated by the Leases will be communicated to the Landlord through the Facility Booking process.

11. Food ServiceThe Leases will assume full responsibility for providing food service for all programs, events and activities initiated by or originating from the Landlord and delivered in the Leased Premises. A list of all special events taking place within the

Leased Premises will be provided by the Landlord in a timely fashion. The Tenant is responsible for all details related to food and beverage service requirements. Cancellations and schedule changes will occur from time to time and cannot be avoided.

In the event that the Tenant waives their right to provide food service for an Landlord originated special event or activity, it is understood that the Landlord or renter can select an alternative food service provider for the event at their sole discretion.

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12. MailSpecial provisions for receiving mail must be made with the Stephen Leacock Museum Coordinator, Manager of Culture or their designate.

13. MaintenanceKeep the restaurant, bar, kitchen and storage areas and City equipment in good repair and maintained at a high level of cleanliness.

Maintenance - End of AgreementLeave the restaurant, bar, kitchen and storage areas, and City equipment in a neat and tidy condition at the expiry of the Agreement and repair or replace any damages to same.

14. Occupational Health and Safety ActMust comply with all requirements of the Occupational Health and Safety Act and any City of Orillia safety requirements that may be imposed from time to time.

15. ParkingAll vehicles operated by the Tenant and his/her staff must use the main parking lot facilities. Storage of delivery vehicles and private vehicles is prohibited.

16. Public Health StandardsEnsure that all aspects of the Tenant's activities in the performance of the food service operations contemplated by this agreement, are at all times in compliance with Public Health Standards as set out and enforced by the Simcoe Muskoka District Health Unit.

17. Renovations

All renovations become part of the building and the property of the Stephen Leacock Museum - City of Orillia. Renovations are not to be dismantled or destroyed at either the end or termination of the lease. Renovations are at cost to the Tenant and must be approved in advance by the City of Orillia and comply with the Building Code and Fire Regulations.

18. Security Deposit - Equipment/ Facility MaintenanceAs per the Agreement, a security deposit of $2000.00 was received on January 1st, 2022 and will be held until the end of this Agreement Term, without interest accruing on the same.

An inventory of all equipment will be conducted at the beginning and end of the contract. Upon termination of the contract, all equipment must be deemed to be in satisfactory condition by the Landlord in its sole discretion. The Tenant will be given an opportunity to correct deficiencies. In the event of unsatisfactory areas remaining, deficiencies will be corrected with costs to be

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deducted from the security deposit.

The Landlord will conduct an inspection of all facilities relative to acceptable levels of maintenance and cleanliness at the end of the contract period. Unsatisfactory areas will be brought to the attention of the Tenant. The Tenant will be given an opportunity to correct deficiencies. In the event of unsatisfactory areas remaining, deficiencies will be corrected with costs to be deducted from the security deposit.

19. ServicesThe City will provide heating, water, ventilation, air conditioning and hydro as existing. Additional heating, ventilation, air conditioning, hydro and utility services including increased voltages will be at the expense of the Tenant.

20. SignageSupply appropriate signs in the lobby area indicating that the restaurant and bar operation is a contracted service supplied independent of the City of Orillia, Parks, Recreation and Culture Department. A suitable sign will also be posted with the name, full address, and telephone number of the restaurant operator and may include Regular Hours of Operation.

21. StaffingBe solely responsible for staffing and will comply with the Ontario Employment Standards Act and all related legislation. All staff employed by the Tenant must wear a uniform (shirt with identification is acceptable) and be clean, neat and reasonably dressed for the purposes of employment. Staff employed by the

Tenant will not loiter within the facilities or on the property of the City of Orillia. Tenant staff are required to use the public washrooms at Swanmore Hall. The City of Orillia reserves the right to discuss any concerns related to staff with the Tenant.

22. Workplace Safety and Insurance Board • ClaimsUnderstand that Workplace Safety and Insurance Claims made by the Tenant or staff of the Tenant occurring from work activities in the food, bar and vending areas will be the responsibility of the Tenant. The City of Orillia is not liable or responsible for the actions of the Tenant's employees while performing their duties. Any labour disputes are the responsibility of the Tenant and are not to be managed while on the City of Orillia properties.

23. Workplace Safety and Insurance Board - Certificate of ClearanceThe Tenant is responsible for holding in good standing a Certificate of Clearance from the Workplace Safety and Insurance Board.

24. Additional Rules

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The Landlord shall have the right to make such other and further reasonable rules and regulations and to alter, amend or cancel all rules and regulations as in its judgment may from time to time be needed for the safety, care and cleanliness of the building and for the preservation of good order therein and the same shall be kept and observed by the Tenant.

25. Permitted Cooking Area No tenant shall be permitted to do cooking or to operate cooking apparatus except in a portion of the building rented for the purpose, in this case the kitchen.

26. Not a ResidenceNo one shall use the leased premises for sleeping apartments or residential purposes.

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equipment “A”

EQUIPMENT LIST [TO BE PROVIDED BY THE LANDLORD BEFORE EXECUTION OF THE AGREEMENT]

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