1.06

Entire A~reement

This lease, the Chattel Lease, and the Settlement Agreement, contain all the

representations, warranties, covenants, agreements, conditions and understandings between the

Landlord and the Tenant concerning the Demised Premises and the subject matter of this lease.

1.07

Governine Law

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This lease shall be interpreted under and is governed by the laws ofthe Province

of Ontario.

1.08

Construction

If any provision of this lease is illegal or unenforceable it shall be considered

separate and severable from the remaining provisions of this lease, which shall remain in force

and shall be binding as though the said provision had never been included. Ifthere is more than

one tenant then all obligations of the Tenant hereunder shall be joint and several.

ARTICLE II -DEMISE AND TERM

2.01

Demise and Term

The Landlord hereby leases and demises the Demised Premises to the Tenant for

the Term at the rent and on the terms and conditions stated in this lease.

2.02

Licenses to Access and Use Adjacent Lands

Subject to the terms of this Lease, and during the Term, the Tenant shall also have

and enjoy, and the Landlord hereby grants to the Tenant, a license to have access to and to use

(and to allow its customers to have access to and to use) those lands adjacent to the Lands which

are more particularly described in Parts II and III of Schedule "A" hereto (the "Adjacent Lands"),

for purposes of

.

(a) access to the water,

(b)

temporary storage of vessels,

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(c) the movement and handling of boats into and out ofthe water or storage; and

(d) other purposes consistent with the past practices ofthe Tenant with respect to the marina

and sailing school operations;

provided" that any such access or use is consistent with the past practices of the Tenant, and is

not incompatible, in terms of safety or aesthetics, with either the public's access to the waterfront

over the Adjacent Lands or the future redevelopment of lands in the vicinity of the Demised

Premises.

~5

The licenses granted under this Section 2.02 shall include the ability of the

Tenant, during two annual periods of not more than seven (7) consecutive days, designated by .

the Tenant to the Landlord in writing on at least seven (7) days notice, commencing on or about

May 1 and October 1 during each year of the Term, to have the exclusive use of the lands

described in Part III on Schedule "A", for purposes ofremoving or launching boats from or into

the water.

2.03

Term

The Term of this lease is set out in Schedule B.