V0B 2G0. 1. Definitions When used in this Lease, the following expressions will have the meanings indicated:
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- Melvyn Simpson
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1 THIS AGREEMENT MADE THE DAY OF, BETWEEN: DISTRICT OF SPARWOOD P.O. Box Spruce Avenue Sparwood, British Columbia V0B 2G0 (Hereinafter called the "Lessor") OF THE FIRST PART AND: ELK VALLEY THRIFT SHOP SOCIETY P.O. Box Centennial Square Sparwood, British Columbia V0B 2G0 (Hereinafter called the "Lessee") OF THE SECOND PART IN CONSIDERATION OF the Lessor leasing certain premises to the Lessee, the Lessee leasing those premises from the Lessor and the mutual benefits and obligation set forth in this Lease, the receipt and sufficiency of which consideration is hereby acknowledged, the Parties to this Lease agree as follows: 1. Definitions When used in this Lease, the following expressions will have the meanings indicated: (a) Additional Rent means all amounts payable by the Lessee under this Lease except Base Rent, whether or not specifically designated as Additional Rent elsewhere in this Lease; (b) Building means all buildings, improvements, equipment, fixtures, furniture, goods, property and facilities from time to time at 156 Spruce Avenue, Sparwood, BC, V0B 2G0, as from time to time altered, expanded or reduced by the Lessor in its sole discretion; (c) Leasable Area means with respect to any rentable premises, the area as outlined in Schedule A, attached hereto and forming part of this Lease; (d) Premises means the building located at 156 Spruce Avenue, Sparwood, BC, V0B 2G0; (e) Rent means the total of Base Rent and Additional Rent. 2. Intent of Lease It is the intent of this Lease and agreed to by the Parties to this Lease that rent for this Lease will be on a gross rent basis meaning the Lessee will pay the Base Rent and any Additional Rent, including but not limited to the payment of Provincial Sales Tax and Goods and Services Tax, as may be applicable, pursuant to the Excise Tax Act, Canada calculated on the Base Rent hereby reserved, or any similar or other like tax, and the Lessor will be responsible for all other service charges related to the Premises and the operation of the Building save as specifically provided in this Lease to the contrary.
2 3. The Leased Premises The Lessor agrees to lease to the Lessee the building municipally described as PID , Lot 18, Plan 7008, District Lot 4589, LD 26 Kootenay District, 156 Spruce Avenue, Sparwood, British Columbia, V0B 2G0 (the Premises). The Premises will be used for only the following permitted use (the Permitted Use ): (a) The storage and sorting of goods; and other such purposes as may be approved by the Lessor. (b) Neither the Premises nor any part of the Premises will be used at any time during the term of this Lease by the Lessee for any purpose other than the Permitted Use. 4. Term (a) The term of the Lease is a periodic tenancy commencing on March 7, 2016 and continuing on a month-to-month basis until the Lessor or Lessee terminated the Lease. (b) Notwithstanding that the term of this Lease commences on March 7, 2016, the Lessor is entitled to possession of the Premises on January 1, Rent (a) Subject to the provisions of this Lease, the Lessee will pay a base rent of $100.00, payable per month, for the Premises (the Base Rent ). (b) The Lessee will pay the Base Rent on the First of each and every month of the term of this Lease to the Lessor. (c) For any rent review renegotiation, the basic rent will be calculated as being the higher of the Base Rent payable immediately before the date of review and the Open Market Rent on the date of review. 6. Use and Occupation (a) The Lessee will use and occupy only for the Permitted Use and for no other purpose whatsoever. (b) The Lessee covenants that the Lessee will carry on and conduct its business from time to time upon the Premises in such a manner as to comply with all statutes, bylaws, rules and regulations of any federal, provincial, municipal or other competent authority and will not do anything on or in the Premises in contravention of any of them. (c) The Lessee shall sufficiently repair, replace, maintain, amend and keep the Leasable Area in good and substantial repair, excluding structural repairs and replacements, and including replacement of fixtures and equipment, when, where and so often as need shall be. Damage by fire and other risks as against which the Lessor is insured, excepted, provided that, notwithstanding the foregoing the Lessee shall repair and make good any damage caused by the Lessee, or any of its employees, agents, invitees or licensees. The Lessor upon reasonable notice, may enter the Building to view the state of repair, and the Lessee will repair, according to notice, except as aforesaid. (d) The Lessee shall at its expense, provide janitorial services to the Leasable Area sufficient to keep the Leasable Area tidy and in a clean and sanitary condition, free from odours, rodents, bugs and vermin, and shall provide receptacles for refuse and rubbish of all kinds and shall attend to the removal of the same from the Leasable Area at regular intervals, and shall not keep or leave any rubbish of any kind in or near the Leasable Area. (e) The Lessee shall permit perspective purchasers to enter and inspect the Leasable Area. District of Sparwood Monthly Lease Agreement for 156 Spruce Avenue Page 2 of 6
3 (f) The Lessor covenants that on paying the Base Rent and performing the covenants in this Lease, the Lessee will peacefully and quietly have, hold, and enjoy the Premises for the agreed term. 7. Distress (a) If and whenever the Lessor is in default in payment of any money, whether hereby expressly reserved or deemed as rent, or any part of the rent, the Lessor may, without notice or any form of legal process, enter upon the Premises and seize, remove and sell the Lessor s goods, chattels and equipment from the Premises or seize, remove and sell any goods, chattels and equipment at any place to which the Lessee or any other person may have removed them, in the same manner as if they had remained and been detrained upon the Premises, all notwithstanding any rule of law or equity to the contrary, and the Lessor hereby waives and renounces the benefit of any present or future statute or law limiting or eliminating the Lessee s right of distress. (b) If the Lessee continues to occupy the Premises without the written consent of the Lessor at the expiration or other termination of the term, then the Lessee will be a tenant at will and will pay to the Lessor, as liquidated damages and not as rent, an amount equal to the Open Market Rent plus any Additional Rent during the period of such occupancy, accruing from day to day and adjusted pro rata accordingly, and subject always to all the other provisions of this Lease insofar as they are applicable of law; provided that nothing in this clause will preclude the Lessor from taking action for recovery of possession of the Premises. 8. Tenant Improvements The Lessee will obtain written permission from the Lessor before doing any of the following: (a) Applying adhesive materials, or inserting nails or hooks in walls or ceilings; (b) Painting, wallpapering, redecorating or in any way significantly altering the appearance of the Premises; (c) Removing or adding walls, or performing any structural alterations; (d) Installing additional electrical wiring or heating units; or (e) Placing or exposing, or allowing to be placed or exposed, anywhere inside or outside the Premises any placard, notice or sign for advertising or any other purpose. 9. Utilities and Other Costs The Lessee is responsible for paying to the Lessor the following utilities and other charges in excess of $ per month: electricity and natural gas. 10. Insurance (a) The Lessee is hereby advised and understands that the personal property of the Lessee is not insured by the Lessor for either damage or loss, and the Lessor assumes no liability for any such loss. The Lessee is advised that, if insurance coverage is desired by the Lessee, the Lessee should inquire of the Lessee s insurance agent regarding a Tenant s Policy of Insurance. (b) The Lessee is responsible for insuring the Premises for liability insurance in the sum of at least two million ($2,000,000.00) dollars in respect of injury of death to one or more persons or property damage occurring either in, upon or near the Leasable Area or the Premises, standard fire insurance with extended coverage or additional perils supplemental contract on the stock-in-trade, furniture, fixtures and equipment of the Lessor in the Leasable Area to the full replacement value thereof and tenants District of Sparwood Monthly Lease Agreement for 156 Spruce Avenue Page 3 of 6
4 fire legal liability in the amount of two hundred and fifty thousand ($250,000.00) dollars for the benefit of the Lessee and the Lessor. (c) The Lessee will provide proof of such insurance to the Lessor upon execution of this Lease. 11. Governing Law It is the intention of the Parties to this Lease that the tenancy created by this Lease and the performance under this Lease, and all suits and special proceedings under this Lease, be construed in accordance with and governed, to the exclusion of the law of any other forum, by the laws of the Province of British Columbia, without regard to the jurisdiction in which any action or special proceeding may be instituted. 12. Severability If there is a conflict between any provision of this Lease and the applicable legislation of the Province of British Columbia (the Act ), the Act will prevail and such provisions of the Lease will be amended or deleted as necessary in order to comply with the Act. Further, any provisions that are required by the Act are incorporated into this Lease. 13. Assignment and Subletting The Lessee will not assign this Lease, or sublet or grant any concession or license to use the Premises or any part of the Premises. An assignment, subletting, concession, or license, whether by operation of law or otherwise, will be void and will, at the Lessor s option, terminate this Lease. 14. Care and Use of Premises (a) The Lessee will promptly notify the Lessor of any damage, or of any situation that may significantly interfere with the normal use of the Premises. (b) The Lessee will not make (or allow to be made) any noise or nuisance which, in the reasonable opinion of the Lessor, disturbs the comfort or convenience of neighbouring property owners or residents. (c) The Lessee will not engage in any illegal trade or activity on or about the Premises. (d) The Lessor and Lessee will comply with standards of health, sanitation, fire, housing and safety as required by law. 15. Surrender of Premises At the expiration of the lease term, the Lessee will quit and surrender the Premises in as good a state and condition as there were at the commencement of this Lease, reasonable use and wear damages by the elements excepted. 16. Rules and Regulations The Lessee will obey all rules and regulations posted by the Lessor regarding the use and care of the Building, parking lot, and other facilities that are provided for the use of the Lessee in and around the Building on the Premises. 17. General Provisions (a) Any waiver by the Lessor of any failure by the Lessee to perform or observe the provisions of this Lease will not operate as a waiver of the Lessor s rights under this Lease in respect of any subsequent defaults, breaches or nonperformance and will not defeat or affect in any way the Lessor s rights in District of Sparwood Monthly Lease Agreement for 156 Spruce Avenue Page 4 of 6
5 respect of any subsequent default or breach. (b) This Lease will extend to and be binding upon and inure to the benefit of the respective heirs, executers, administrators, successors and assigns, as the case may be, of each Party to this Lease. All covenants are to be construed as conditions of this Lease. (c) All sums payable by the Lessee to the Lessor pursuant to any provision of this Lease will be deemed to be Additional Rent and will be recovered by the Lessor as rental arrears. (d) Where there is more than one Lessee executing this Lease, all Lessees are jointly and severally liable for each other s acts, omissions and liabilities pursuant to this Lease. IN WITNESS WHEREOF the Parties to this Lease have duly affixed their signatures by authorized officer on this day of, DISTRICT OF SPARWOOD, per: ELK VALLEY THRIFT SHOP SOCIETY. per: AUTHORIZED SIGNATORY Authorized Signatory AUTHORIZED SIGNATORY District of Sparwood Monthly Lease Agreement for 156 Spruce Avenue Page 5 of 6
6 Schedule A Leasable Area for 156 Spruce Avenue LEASABLE AREA District of Sparwood Monthly Lease Agreement for 156 Spruce Avenue Page 6 of 6
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