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COMMERCIAL LEASE
This lease is made between:
EDARLEX INVESTMENTS LTD.
(hereinafter referred to as "Landlord")
-AND-
Mrs. Christine Dinney
ola Crafty Candles
(hereinafter referred to as "Tenant")
The Landlord and Tenant hereby agree as follows:
1. The Landlord hereby grants the Tenant a lease of the premises known as 49 Talbot Street, in the
Town of Essex, in the County of EsscA, consisting of 1
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floor and a portion of the second floor of a
three storey building having a an approximate frontage of 38 feet by a depth of 100 feet (hereinafter
referred to as the "Premises")
2. The term of this lease commences on May 15,2008, and ends on May 14,2011. If the Tenant
continues in occupation ofthe Premises with the consent of the Landlord after expiry of the term of
this lease, the Tenant shall be deemed to be leasing the Premises on a month-to-month basis but
otherwise on the same terms as set out in this lease. Additionally the tenant has a renewal option of
THREE (3) Years at fair market rate.
3. The Tenant may use the Premises for the operation of a Sears Catalogue Store, manufacturing of
candles and gift items, reta:1 and general business activity and for no other purpose.
4. (a) The Tenant shall pay the Landlord rent of TWENTY-SIX THOUSAND, FOUR HUNDRED,
dollars ($26,400.00) per year in 12 post-dated equal monthly instalments of TWO THOUSAND,
TWO HUNDRED dollars ($2,200.00) for the first year of the this lease.
For the subsequent years of the lease, The Tenant shall pay the Landlord
rent as follows:
YEAR TWO: $28,800.00 per year, $2,400.00 per month.
YEAR THREE: $31,200.00 per year, $2,600.00 per month.
(b) In addition to the rent the Tenant shall pay to the Landlord 5% GST and monthly 1/12 of the
estimated BIA premium. The rent rates include the municipal property taxes.
5. The Tenant shall also pay the Landlord as "additional rent", on demand, 100% of the total costs
incurred by the Landlord including, but not limited to legal fees, of curing any default of the Tenant
under this lease, including but not limited to enforcing payment of rent and regaining lawful
possession of the Premises.
6. The Tenant shall maintain the interior of the leased premises including electrical, plumbing and the
heating and air-conditioning unit. Tenant shall make all repairs and maintenance at his so-le cost.
With the following exception HVAC repairs and roof repairs, to be defined as portion of repair in
excess of$400.00 per instance will be sole responsibility of the landlord. The tenant will pay the first
$400.00 per instance and any amount exceeding $400.00 without limitation will be paid by landlord.
7. All utilities, business taxes, licenses etc., any services, and expenses relevant to the use by the
Tenant, of the Premises and not mentioned in this lease are the responsibility of the Tenant.
8. The Landlord covenants w;th the Ten<tnt that so long as the Tenant complies with the terms ofthis
Lease, the Tenant may occupy and enjoy the Premises without any Interruption from the Landlord.
9. The Landlord is not liable for any damage to the Tenant's property or for any injury to any person in
or coming to or from the Premises, however caused, and the Tenant agrees to indemnify the
Landlord against the financial consequences of any such liability. In this regard, the Tenant shall
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purchase and maintain public liability insurance in the amount of no less than TWO MILLION
dollars ($2,000,000.00) and shall provide proof of this insurance to the Landlord upon request.
10. The Landlord may terminate this lease for anyone of the following or any other cause by
law:
(a) fifteen days' arrears of rent or additional rent;
(b) the bankruptcy or insolvency of the Tenant;
(c) a material change in the use of the Premises by the Tenant and, in particular
(without limiting the generality of this provision), any change that affects the
Landlord's building insurance or that constitutes a nuisance.
(d) any unauthorized assignment or subletting ofthis lease by the Tenant;
(e) substantial damage to or destruction ofthe Premises;
(f) any significant wilful or negligent damage to the Premises caused by the tenant or
by persons permitted on the Premises by the Tenant.
11. The Tenant further covenants, promises and agrees with the Landlord that notwithstanding any
present or future Act of the Legislature ofthe Province of Ontario, none ofthe goods in the demised
premises shall be exempt from levy by distress for rent in arrears by the Tenant as provided for by
the said Section of said Act, 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 named exempted in the said the Tenant waiving as he hereby does all and every
benefit that could or might have accrued to him under and by virtue of the said sect of the said act
but for the above covenant.
12. The Tenant may not assign or sublet the Premises, completely or in part, or allow the Premises to be
used by any other person without the written consent of the Landlord, which consent may not be
unreasonably withheld. In the event of a transfer or assignment, the Tenant shall continue to be
responsible for the obligations of the Lease Agreement.
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13. The Tenant will keep the Premises in a reasonable state of repair and cleanliness and sha not make
improvements or alterations to the Premises without the written consent of the Landlord, which
consent shall not be unreasonably withheld.
14. At the end of the lease, the Tenant shall deliver vacant possession to the Landlord of the Premises in
the same condition as at the commencement of this lease, reasonable wear and tear accepted and
except that the Landlord may, in the Landlords sole discretion, elect to keep any of the Tenants
leasehold improvements or alterations.
15. Any written notice required or permiLed to be given by this lease is sufficiently given if sent in
proper form by ordinary mail to the last known address of the party for whom the notice is intended.
Any written notice sent by ordinary mail in accordance with this paragraph is deemed, fo he _
purposes of this lease, received by the addressee on the seventh day after mailing unless actually
received before. Nothing in this paragraph prevents giving written notice in any other manner
recognized by law.
16. In this lease, words importing the singular include the plural, and vice versa, and importing the
masculine gender include the feminine, arid importing an individual inc a corporation and vice versa.
This lease binds and benefits the parties and their respective heirs, successors, and permitted assigns.
Executed on May 13th, 2008
for the Tenant
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