BY-LAW NUMBER ~ OF 1992 OF THE CITY SARNIA. "A By-Law to Authorize a Licence with Canadian National Railway company"

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1 BY-LAW NUMBER ~ OF 1992 OF THE CITY SARNIA "A By-Law to Authorize a Licence with Canadian National Railway company" WHEREAS it is deemed expedient that The Corporation of the city of Sarnia enter into a Licence with Canadian National Railway Company. NOW THEREFORE the Municipal council of The Corporation of the city of Sarnia enacts as follows: 1. The Corporation of the city of sarnia is authorized to enter into a Licence with Canadian National Railway company, in the form of the Licence a copy of which is annexed to this By-Law. 2. The Mayor and Clerk are authorized to execute such Licence and to affix to it the Corporate Seal of The Corporation of the city of Sarnia. 3. This By-Law comes into force and effect upon being finally passed. FINALLY PASSED this ~ '- day of, Mayor

2 S THIS INDENTURE made as of the FIRST day of MAY, ONE THOUSAND NINE HUNDRED AND NINETY-TWO. IN PURSUANCE OF THE SHORT FORMS OF LEASES ACT (ONTARIO) BET WEE N CANADIAN NATIONAL RAILWAY COMPANY (hereinafter called the "Lessor") OF THE FIRST PART - and - THE CORPORATION OF THE CITY OF SARNIA (hereinafter called the "Lessee") OF THE SECOND PART WITNESSETH that in consideration of the rents, covenants and agreements, hereinafter reserved and contained, on the part of the Lessee, the Lessor doth demise and lease unto the Lessee that certain parcel or tract of land and premises containing an area of approximately 14,400 square feet situate on the right-of-way boundary of the Lessor at or about Railway Mileage of the Lessor's strathroy Subdivision, in the City of Sarnia, County of, Lambton, and Province of ontario, as shown outlined in red on the attached unnumbered Plan No. undated, which forms part hereof. TO HAVE AND TO HOLD the aforementioned demised premises for and during the term of five (5) years to be computed from the First day of May, One Thousand Nine Hundred and Ninety-Two and from thenceforth next ensuing and fully to be complete and ended, unless sooner terminated by written notice as hereinafter mentioned. YIELDING AND PAYING therefor, yearly in advance during the said term unto the Lessor the sum of TWO THOUSAND THREE HUNDRED AND SEVENTY-FOUR DOLLARS ($2,374.00) plus applicable Goods and Services Tax (GST), payable on the First day of May, One Thousand Nine Hundred and Ninety-Two. AND FURTHER YIELDING AND PAYING therefor, as part of the rental hereunder, payable forthwith on receipt of an account therefor from the Lessor, a sum of money equal to the amount of any taxes, rates and/or assessments levied upon the demised premises and/or upon any property whatsoever of the Lessee upon the demised premises, paid or payable by the Lessor in the event of default by the Lessee in payment of such taxes, rates and/or assessments. Non-payment of any or all rents and amounts collectable as rent under the terms of this lease when due shall constitute a default under the lease and shall bear interest from the due date thereof to the date of payment at a rate equal to the prime lending rate at

3 the Main Branch of the Bank of Montreal, located in Toronto, ontario, on the date of default plus three (3) percentage points, without prejudice to any other rights which the Lessor may have under the lease arising out of such default. The demised premises shall be used by the Lessee for the purpose only of erecting, maintaining and using thereon suitable buildings, structures and other facilities for a pumphouse and fire hydrant site. Save as may be above provided no substances of an explosive, dangerous or inflammable nature or character, including but without restricting the generality of the foregoing, dangerous or prohibited substances within the scope of any applicable environmental legislation, including Regulations or Orders of the National Transportation Agency or other lawful authority having jurisdiction, shall be stored in or upon the said premises, without the written consent of the Lessor and due compliance with all legislation, regulations, orders or other lawful requirements of any authority having jurisdiction. No buildings, structures or facilities shall be placed on the demised premises nor any renovation, alteration or demolition of existing buildings, structures or facilities effected other than those which have been approved in writing by the Lessor or its representative. No building, structure or piles of material over four feet (4') in height shall be placed at less distance than six feet (6') at right angles from the gauge side of the nearest rail of any railway track; if the track is curved, no building, structure or piles of material over four feet (4') in height shall be placed at less distance than ten feet (10') from the gauge side of the nearest rail of such track without first obtaining the approval of the Lessor. THE LESSEE COVENANTS WITH THE LESSOR: 1. To pay rent. 2. AND to pay taxes, including business taxes, rates and/or assessments levied upon the demised premises or upon any property of the Lessee upon such demised premises and further including any municipal, parliamentary or other governmental fees for Licenses or permits required for the intended use of the premises. 3. AND to keep up fences. 4. AND not to cut down timber. 5. AND will not assign or sublet without leave. 6. Provided that the Lessee may remove the Lessee's fixtures. 7. Proviso for re-entry by the Lessor on non-payment of rent or non-performance of covenants. 8. To comply with and conform to all laws, by-laws, orders, rules and regulations of any lawful authority having jurisdiction whether municipal, parliamentary or otherwise, respecting all buildings, structures, other facilities, goods and other property on the demised premises and the Lessee's use of the demised premises. 9. To assume all risk of injury, loss or damage by fire, theft or other cause whatsoever, whether due to the negligence of

4 the Lessor, its servants or otherwise, to all property of or in the custody of the Lessee on the demised premises. 10. To accept the demised premises in its present condition without obligation by the Lessor to render such habitable and, at its own risk and expense, to repair (including painting), maintain and keep the said demised premises and access thereto in a neat and tidy condition free and clear of any accumulations of snow and/or ice as well as any debris whatsoever. 11. Not at any time to use the demised premises or any access roadways in any way considered objectionable to the Lessor, nor to obstruct or interfere with the operation, maintenance or use of any railway track, roadway or works of the Lessor, or others, in the vicinity of the demised premises. 12. And shall not conduct nor permit any activity within the demised premises which would in the opinion of the Lessor constitute or create any environmental or pollution problem with respect to the demised premises or surrounding area. 13. (a) The Lessee agrees to supply, erect and thereafter maintain during the continuance hereof at the Lessee's risk and expense, such fence or other barrier as deemed appropriate by the Lessor along those boundaries of or at such locations within the demised premises as designated by the Lessor, to prevent the fouling by vehicles or otherwise, of adjacent lands of the Lessor or others. (b) Any fence or other barrier to be erected pursuant to the provisions hereof shall first be approved by the Lessor as to style, type and location. If erected on other than the boundary limits of the Lessor's lands, such fence or barrier shall on termination of this lease, at the option and request of the Lessor, be either removed forthwith from the demised premises or relocated to the designated boundary limits of the Lessor's lands; provided that failure to comply with the Lessor's request shall entitle the Lessor to remove or relocate the same at the expense of the Lessee. 14. To permit the Lessor, at all times, to inspect the premises and check upon the Lessee's handling of the business. THE LESSOR COVENANTS WITH THE LESSEE: 15. For quiet enjoyment of the demised premises. AND IT IS MUTUALLY AGREED: 16. (a) It is understood and agreed that the leased premises are being leased to the Lessee "as is". The Lessee has satisfied itself as to the condition of the leased premises and their fitness for the use intended. The Lessee acknowledges that it has inspected the leased premises and conducted an independent investigation of current and past uses of such leased premises and that the Lessee has not relied on any representations by the Lessor concerning any condition of the leased premises. environmental or otherwise. The Lessor makes no representations or warranties whatsoever regarding the fitnes ~ of the leased premises for any

5 particular use regarding the presence or absence upon or under such leased premises or any surrounding or neighbouring lands of, or the leakage or likely leakage or emission from or onto the leased premises of, any toxic hazardous, dangerous or potentially dangerous substance or condition. (b) The Lessee shall immediately carry out all measures which the Lessor, in its sole discretion, considered necessary to keep the leased premises free and clear of all environmental contaminants or residue (hereinafter referred to as "environmental contamination") resulting from the Lessee's occupation or use of the leased premises. The Lessee shall be solely responsible for the cost of all work carried out to correct any environmental contamination which occurs on other lands as a result of the Lessee's occupation or use of the leased premises. (c) If the Lessee fails to correct any environmental contamination to the satisfaction of the Lessor and any public authority having jurisdiction, the Lessor may perform such work by its employees or agents. The Lessor may charge the Lessee from time to time for all the costs incurred by the Lessor in correcting such environmental contamination, plus fifteen percent (15%) for overhead, and the Lessee shall pay the Lessor's invoice or invoices for such costs within ten (10) days of receipt of each invoice. In the event such remedial work is carried out by any public authority, the cost of such work shall be borne by the Lessee. (d) The Lessee shall comply with the provisions of any fede::al, provincial or municipal laws applicable to the leased prem1ses with respect to maintaining a clean environment. If any public authority having jurisdiction with respect to environmental protection, or fire protection, requires the installation of equipment or apparatus to take such measures as may be required by such public authority. The Lessee shall be solely responsible for the cost of all work carried out to comply with the requirements of a public authority. (e) Upon the termination of this Lease, the Lessee shall leave the leased premises in a clean and tidy condition free of any environmental contamination resulting from the Lessee's occupation or use of the leased premises, the Lessee shall remove such facility and contents by the date of termination of this Lease, unless the Lessor consents in writing to such facility remaining on the leased premises and, in such case, the Lessee shall have the burden of proving that any environmental contamination has not resulted from its occupation or use of the leased premises. (f) The responsibility of the Lessee to the Lessor with respect to the environmental obligations contained herein shall continue to be enforceable by the Lessor notwithstanding the termination of this Lease. 17. The Lessor does not warrant safe access to the demised premises and access thereto shall be at the risk of the Lessee. If it is necessary to cross other lands of the Lessor or over railway tracks to have access to the demised premises, the way used therefor shall be that designated by the Lessor.

6 18. The Lessee shall ensure that all freight shipped to and from the demised premises shall, so far as the Lessee can control the same, be shipped the greatest possible distance on its route over the lines of Canadian National Railways and its subsidiaries, provided the rates applicable are not higher than, and the service given is equal to, those of competing carriers. 19. That before the termination of this lease or any renewal thereof, either by lapse of time or by notice or otherwise, as herein provided, the Lessee shall, at the Lessee's risk and expense, remove from the property of the Lessor all buildings, structures, improvements, other facilities and materials thereon not belonging to the Lessor and shall clear and level the ground, leaving the demised premises in clean and neat condition satisfactory to the Lessor. If the Lessee shall not so remove such buildings, structures, improvements, other facilities and materials the same shall, at the option of the Lessor and without prejudice to the Lessor's right to enforce such removal as hereinbefore provided, become the property of and belong to the Lessor without any right to the Lessee to have compensation therefor in any form and the Lessee shall, if so required by the Lessor, quit and quietly and peaceably deliver up possession thereof to the Lessor on such termination accordingly. 20. That should the term hereby granted be, at any time, seized or taken in execution, or should the Lessee become insolvent or make an assignment by, through or under the operation of any law whatever for the benefit of creditors, or take the benefit of any winding-up Act or Acts of Bankruptcy or of Insolvent Debtors, the term by this lease created shall, at the option of the Lessor, become forfeited and void, and the Lessor shall be entitled and shall possess the right to take possession at once of the demised premises and all buildings, structures and other facilities then situated thereon, and to have and possess the same free from all claims on the part of the Lessee, or any person or party claiming under the Lessee, or under the said Act or Acts or otherwise; the liabilities of the Lessee to the Lessor under this lease, however, to remain in full force as to anything that may have accrued to the Lessor prior to the said seizure or other acts in this clause above mentioned. 21. Either party hereto may terminate this lease at any time after the effective date hereof by giving to the other party not less than ninety (90) days' notice in writing; PROVIDED that if the Lessee shall be in breach of any of the terms, covenants, provisos or conditions herein set forth, the Lessor shall have the right to cancel this agreement forthwith. Notice hereunder may be given by the Lessor by posting it upon the demised premises or by mailing same addressed: to the Lessee at: 255 Christina street North Sarnia, ontario N7T 5V4 and by the Lessee by mailing same, addressed to: Regional Manager Real Estate Services suite 930, 277 Front street West Toronto, ontario M5V 2X4 22. Should the Lessee hold over the demised premises beyond the term hereby granted, the tenancy thereby created shall be at

7 the will of the Lessor, subject to the right of the Lessee to terminate same at any time by giving to the Lessor not less than Ninety (90) days' notice in writing. Except as aforesaid, all the terms and conditions of this lease shall be applicable to such tenancy. 23. The Lessee shall at all times indemnify and save harmless the Lessor from and against all loss, expense or damage arising from any negligence of the Lessee, its servants or agents, and from and against all claims and demands, loss, costs, actions, suits or other proceedings by whomsoever made, brought or prosecuted, whether arising by reason of accidents, damages or injuries to persons (including the Lessor's servants or agents) or to property or otherwise, in any manner based upon, occasioned by, arising out of, or attributable to the existence of these presents, or any privileges granted, or action taken or things done or maintained by virtue hereof, or the exercise in any manner of rights arising hereunder, and the Lessee hereby waives as against the Lessor all claims and demands of whatsoever nature or kind, whether arising directly or indirectly out of the existence of these presents or any privileges granted, or action taken or things done by virtue hereof; PROVIDED that any such loss, expense, damage, accidents, injuries, claims and demands (other than for fire) caused or contributed to by the fault or negligence of both parties shall be borne by them equally; PROVIDED FURTHER that in no event shall the Lessor be liable for damage by fire arising directly or indirectly from sparks from locomotives of the Lessor, whether caused by the negligence of the Lessor, its servants or agents, or otherwise, all such risks being assumed by the Lessee. 24. The Lessee agrees to obtain and keep in force during the continuance hereof, a policy of insurance containing terms and conditions satisfactory to the Lessor, in which the Lessor shall be named as one of the insureds, to provide for public liability, including liability imposed by any Workers' Compensation Act or comparable legislation, respecting the injury to or death of employees and property damage including property of the Lessor, in the amount of TWO MILLION DOLLARS ($2,000,000.00) or such further or other amount as shall be deemed appropriate by the Lessor from time to time during the currency hereof. Such policy of insurance shall contain the following provision: "Cross Liability In the event of an employee of one of the insureds named herein being injured by an event for Which another insured named herein is or may be liable, this policy shall apply to such insureds against whom the claim is made or may be made in the same manner as if separate policies had been issued to each insured named herein. In the event of damage to property belonging to anyone or more insureds for which another insured is or may be liable, this policy shall apply to such insured against whom claim is or may be made in the same manner as if separate policies had been issued to each insured." and shall additionally require the insurer to furnish the Lessor with not less than thirty (30) days' prior written notice of cancellation.

8 The Lessee further agrees to forward to the Lessor the original or a certified copy of the policy of such insurance and any renewals thereof, and to provide the Lessor with a Certificate of Good standing from the Workers' compensation Board on each anniversary date hereof during the continuance hereof. The Lessee also understands and agrees that the placing of such insurance shall in no way relieve the Lessee of the obligations assumed by the Lessee under the provisions of this Lease. 25. This lease shall enure to the benefit of and will be binding upon the heirs, executors, administrators, successors and assigns (as the case may be) of the parties hereto. 26. This Agreement cancels and/or supersedes that certain lease dated the First day of May, 1977 (as renewed and amended) from the Lessor to The Corporation of the Township of Sarnia. IN WITNESS WHEREOF the parties hereto have executed these presents. SIGNED, SEALED and DELIVERED in the presence of: CANADIAN NATIONAL RAILWAY COMPANY Witness as to signature of Lessor Regional Manager, Real Estate services THE CORPORATION OF THE CITY OF SARNIA Witness as to signature of Lessee Approved as tq. fotm ) ~f ~ 1,llO I- ( J"-- {'!~.--.. '. C;;licito~

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10 BY-LAW NUMBER <t r OF 1992 OF THE CITY ~ARNIA "A By-Law to Authorize a Licence with Canadian National Railway Company" READINGS: FIRST: MA/bl 'ttl> )qql SECOND: f'ilaii.(..~ q" ',)q2- THIRD: (YlAII.~1J q~ Jqqz. THE CORPORATION OF SARNIA Legal Services city Hall Sarnia, ontario N7T 7N2 OF THE CITY (VMG:df)

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