ARTICLE XIII - IN DEFAULT

13.01

Tenant's Default

Where the Tenant fails to perfonn or comply with any covenant, tenn or condition

in this lease to be perfonned or complied with by the Tenant, and the failure continues (a) in the

case of payment of rent or other payments deemed to be rent by Section 5.01 herein, for 60 days

after the rent is due, and (b) in case of any other covenant, tenn or condition ofthis lease, for 45

days after receipt of notice from the Landlord ofthe default or such longer period of time as is

reasonably necessary in the circumstances, provided that the Tenant diligently begins to rectify

such default forthwith upon receiving such notice and diligently continues to do so until such

default is rectified, the Landlord may enter and take possession of the Demised Premises with

or without tenninating this lease. A default under the Chattel Lease shall also be a default under

this lease. In taking possession of the Demised Premises, the Landlord may remove all persons

and property from the Demised Premises and such property may be removed and stored in a

public warehouse or elsewhere at the cost of and for the account of the Tenant, all without

service of notice or resort to legal process and without being considered guilty of trespass or

becoming liable for loss or damage occasioned thereby.

If the Demised Premises are vacant for a period of 30 days or more, otherwise

than in a manner consistent with the seasonal nature of the Tenant's operations thereon, the

Tenant shall be deemed to have abandoned the Demised Premises and the Landlord shall be

entitled to take immediate proceedings for possession thereof.

None of the goods of the Tenant on the Demised Premises shall be exempt from

levy by distress for rent or additional rent in arrears, notwithstanding the provisions of any

statutes taking away or limiting the Landlord's right of distress. .

. 13.02

Remedies Generallv

If the Tenant defaults hereunder the Landlord may remedy or attempt to remedy

the default and in so doing may make any payments due or alleged to be due by the Tenant to

third parties. The Landlord's reasonable costs on account of remedying or attempting to remedy

the default shall be payable by the Tenant to the Landlord on demand. The Landlord may from

time to time resort to any or all the rights and remedies available to it in the event of any default

hereunder by the Tenant all of which rights and remedies are intended to be cumulative and not

alternative and the express provisions hereunder as to certain rights and remedies are not to be

interpreted as excluding any other or additional rights and remedies available to the Landlord by

statute or general law.

J!

ARTICLE XIV - SURRENDER OF THE DEMISED PREMISES

14.01

Surrender of the Demised Premises

On the tennination of this lease for any reason, the Tenant shall surrender the

Demised Premises to the Landlord in the condition in which they are required to be kept by the

Tenant under the provisions of this lease.

14.02

Removal of Fixtures

At the end of the Tenn, the Tenant may remove any trade fixtures it owns but not

any other leasehold improvements, goods and chattels from the Demised Premises provided that:

(a)

the Tenant is not in default under this lease; and

McCarthy Tetrault TDO-RED #8106942 Iv. 8