Term:

15 years commencing 01) November 22,2000 and ending on

November 22,2015.

4t

Rent:

$1.00 per annum

Permitted Uses of

the Demised Premises:

~

For the operation of a marina and boating school and

for such uses that are ancillary thereto and which are

consistent with the past practices of the Tenant and no other

purpose

4'

Ii

Address for Notice: Landlord:

71 Main Street West

Hamilton, Ontario

L8P 4Y5

Attention:

Municipal Clerk

'"

IJ

r

Tenant:

605 James Street North

Hamilton, Ontario

L8L lKl

~

!i

Early Termination

.

f

At any time during the Term, the Tenant shall have the right, exercisable on one

year's written notice to the Landlord, to terminate this lease and the Chattel Lease. On the

termination date, the Tenant shall surrender the Demised Premises in the condition required to be

maintained by the Tenant under this Lease. The Tenant shall not have any claim or remedy against

the Landlord in the event that it elects early termination of this lease as set out herein, except in the

case of a breach by the Landlord ofthe terms set out in this lease or the Chattel Lease, in which case

a claim may only be made pursuant to arbitration in accordance with this lease.

II

t4

Audit

The Landlord shall have the right, to conduct an annual audit of the capital

equipment, buildings, and fixtures to review and confirm the Tenant's compliance with its

obligations to repair, replace and maintain, and to account for the same as provided herein and in the

Chattel Lease. The Tenant agrees to make available to the Landlord such of its books and records,

including "the working papers of its accountants or auditors as may be required to be reviewed in

order to confirm Tenant's compliance with such obligations, and to make said items available for

review and copying by the Landlord or its representative in connection with such audit.

15

Adjustment of Net Book Value

Each ofthe parties agree, at the end of the Term (and in any case of early termination

by the Tenant or for default) to make or to accept (as the case may be) a one-time payment to adjust

for any increase or decrease in the Net Book Value of the Improvements (other than buildings) that

may arise between the commencement date and the expiration date ofthis lease, applying generally

accepted accounting principles. If any payment is due from the Tenant to the Landlord under this

section, and the Tenant has made repairs to the Improvements (other than buildings) or any part

thereof which are not otherwise reflected in their net book values using its own staff, equipment and

other resources, the payment due from the Tenant may be reduced to the extent that the Tenant

establishes the net value of such repairs, provided that no claim for any payment by the Landlord to

the Tenant shall be made on this basis. If the parties at the expiration of the Term are unable to

agree upon the amount of the payment to be made under this Section, then the amount shall be