Document:

halifax_lease.htm

     

    
      Delivered
by Electronic Mail

       

      October
30, 2007

       

      Mr. Brian
Toole

      Principal

      Partners
Global Corporate Real Estate Inc.

      Suite
225

      1801
Hollis Street

      Halifax,
NS B3J 3N4

       

      Dear
Brian:

       

      
        	
                RE:

              	
                Agreement
      to Lease Amendment (the
“Agreement”)

              

      

      
        	
                 
      

              	
                Between
      Crombie Developments Limited (the “Landlord”)
  and

              

      

      
        	
                 
      

              	
                Flagstone
      Management Services (Halifax) Limited (the
  “Tenant”)

              

      

      
        	
                 
      

              	
                7th
      Floor, Cogswell Tower, 2000 Barrington
Street,

              

      

      
        	
                 
      

              	
                Halifax,
      Nova Scotia (“the Property”)

              

      

       

      *SEE
RIDER

      We are
pleased to propose the following for presentation to your client, Flagstone
Management Services (Halifax) Limited for premises at 7th Floor, Cogswell Tower,
2000 Barrington Street, Halifax, Nova Scotia.

       

      1.           PREMISES

       

      The
current premises measured at 10,090 square feet on the 7th floor, shall be
expanded by an additional 4,359 square feet on the 7th floor as shown in green
on Schedule A, hereinafter called the “Expansion Area”, for a total area of
approximately 14,449 rentable square feet, outlined in red.

       

      2.           TERM

       

      Six (6)
years and five (5) months, commencing March 1, 2008 (the “Commencement Date”)
and expiring July 31, 2014.

       

      3.           MINIMUM
RENT

       

      On 14,449
square feet - Effective March 1, 2008 through July 31, 2014, the Minimum Rent
shall be as follows:

       

      
        Twelve
Dollars and Thirty-Five cents per square foot ($12.35) per annum, plus
HST.

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

       

      4.           FIXTURING
PERIOD

       

      On the
Expansion Area only, the Landlord and the Tenant hereby covenant and agree that
the Tenant shall have a Fixturing Period commencing on or before February 1,
2008 and expiring on February 29, 2008.  It is agreed and understood
that the Tenant shall be provided vacant possession of portions of the Expansion
Area as they are vacated by the existing Tenants.  During this period,
the Tenant shall not be responsible for the payment of Minimum and Additional
Rents.  The Tenant shall however be responsible for the payment of
utilities consumed on the Premises during this Fixturing Period and business
taxes.

       

      During
the Fixturing Period, the Tenant shall do all the Tenant’s Work within the
confines of the Demised Premises, shall comply with all rules and regulations
set by the Landlord for the conduct of such work, and shall be subject to all
the terms and conditions of the Lease, including the provisions relating to the
liability of the Tenant for its acts or omissions or the acts or omissions of
its servants, agents or employees, and shall indemnify and save harmless the
Landlord with respect thereto.

       

      5.           LANDLORD’S
WORK

       

      On or
before March 1, 2008, the Landlord, at its own expense, will perform all work in
accordance with Schedule “B” (“Landlord’s Work”) attached hereto (“Landlord’s
Work”).  The Landlord shall carry on the Landlord’s Work in a timely
and workmanlike manner compliance with all applicable by-laws and
regulations.

       

      6.           LEASEHOLD
ALLOWANCE

       

      The
Landlord agrees to pay to the Tenant, a maximum amount equal to ($56,538.50)
Fifty six thousand five hundred and thirty eight dollars and fifty cents
(excluding GST or any other tax imposed including but not limited to any
Harmonized Sales Tax levied under the Excise Tax Act of Canada).  Said
amount to be used by the Tenant to pay for the construction of the leasehold
improvements of the Premises, in accordance with Schedule “B” herein, which when
installed in the Premises become the property of the Landlord and the Tenant
will not use said Leaseholds to secure financing for the Tenant.  The
Landlord has the right to Offset the Leasehold Allowance against arrears on the
Tenant’s account.  Said amount shall be due and payable by the
Landlord to the Tenant during the original Term of the Lease.  The
following must be completed prior to payment being processed:

       

      
        
          
            
              
                
                  
                    
                      
                        
                          	 
      	
                                  (i)

                                	
                                  the
      Tenant has sent the Landlord receipted invoices for work done to the
      Premises;

                                
	 	 	 
	 
      	
                                  (ii)

                                	
                                  the
      Mechanic’s Lien period has ended;

                                
	 	 	 
	 
      	
                                  (iii)

                                	
                                  the
      Tenant has sent an invoice to the Landlord for the Allowance amount and
      GST or any other tax Imposed including but not limited to any Harmonized
      Sales Tax levied under the Excise Tax Act of
  Canada;

                                

                        

                      

                    

                  

                

              

            

          

        

      

       

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

      
         

         

         

        
          
            
              
                
                  
                    
                      
                        
                          
                            	 
      	
                                    (iv)

                                  	
                                    the
      Tenant’s Tax Registration number under the Excise Tax Act of Canada is on
      the invoice;

                                  
	 	 	 
	 
      	
                                    (v)

                                  	
                                    a
      Statutory Declaration is completed by the Tenant to confirm that the
      Tenant’s contractors have been paid;

                                  
	 	 	 
	 
      	
                                    (vi)

                                  	
                                    the
      Lease Amending Agreement is fully executed by both
  parties;

                                  
	 	 	 
	 
      	
                                    (vii)

                                  	
                                    the
      Tenant is not in default under the Lease;

                                  
	 	 	 
	 
      	
                                    (viii)

                                  	
                                    the
      Tenant is open for business to the public from the Expansion
      Area;

                                  
	 	 	 
	 
      	
                                    (ix)

                                  	
                                    the
      Tenant’s account is paid
up-to-date.

                                  

                          

                        

                      

                    

                  

                

              

            

          

        

        
7.           OPTION TO
RENEW

      

       

      The
Landlord shall grant to the Tenant a renewal of Lease for one (1) term of five
(5) years provided all the following conditions are satisfied:

       

      
        
          
            
              
                
                  
                    	 
      	
                            (i)

                          	
                            the
      Tenant’s account is not in arrears;

                          
	 	 	 
	 
      	
                            (ii)

                          	
                            the
      Tenant duly and regularly performs each and every of the covenants,
      provisos and agreements herein contained on the part of the Tenant to be
      paid, done and performed;

                          
	 	 	 
	 
      	
                            (iii)

                          	
                            written
      request of the Tenant to renew the Lease is received by the Landlord not
      less than nine (9) months before the expiration of the Term (the “Expiry
      Date”);

                          
	 	 	 
	 
      	
                            (iv)

                          	
                            covenants,
      provisos, agreements and rents are determined by negotiation, prior to the
      Expiry Date, based on fair market taking into consideration premises in
      equal quality buildings within the Halifax Central Business District of
      similar age and location;

                          
	 	 	 
	 
      	
                            (v)

                          	
                            documentation,
      provided by the Landlord to renew the Lease, is fully executed by the
      Tenant prior to the Expiry Date.

                          
	 	 	 
	 
      	
                            (vi)

                          	
                            Landlord
      shall provide Tenant a fair market rent proposal on or before twelve (12)
      months prior to the expiry of the original
Term.

                          

                  

                

              

            

          

        

      

      

      If for any reason all the above noted
conditions are not satisfied at the Expiry Date, this Renewal Option shall be
deemed null and void.  Any broker services retained by the Tenant for
the purpose of renewing this Lease shall be paid by the Tenant to the complete
exoneration of the Landlord.

       

       

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

       

       

       

      8.           VACATING THE
PREMISES

       

      Notwithstanding
anything in the Lease to the contrary, the Tenant shall not be in default for
vacating the Premises prior to the expiration date of the term so long as the
Tenant continues to pay its Minimum Rent and Additional Rent as per the Lease
and is not in default on the other provisions of the Lease, and written notice
is provided to the Landlord at least thirty (30) days in advance of vacating the
Premises.  Should the Tenant provide proper notice, has vacated and is
not in default of the Lease Agreement, the Landlord will have the option to
terminate the Lease, upon providing thirty (30) days notice.  At any
time prior to Landlord’s notice of such termination, Tenant shall be entitled to
resume its occupation of the Premises, upon providing ten (10) days
notice.

       

      9.           RESTORATION/MAKE
GOOD

       

      Notwithstanding
anything in the Lease to the contrary, it is agreed that the Tenant shall not
have the obligation to remove existing leasehold improvements or to restore the
Premises to base building or original condition at the termination of the Lease
and the Landlord agrees to accept the Premises in the condition and
configuration in which they are structured at that time normal reasonable wear
and tear considered.  Tenant covenants to maintain the premises in a
first-class condition.  However, the Tenant will have the right to
remove Tenant’s fixtures, telephone switches, security systems, furniture and
equipment so long as any damage caused as a result of such removals is repaired
as required.

       

      10.           RIGHT OF FIRST
OFFER

       

      Deleted
in its entirety.

       

      11.           RELOCATION

       

      The
Landlord and the Tenant hereby covenant and agree that the Landlord, acting
reasonably, shall have the option at any time during the Term of the Lease, and
upon ninety (90) days prior written notice to the Tenant, to relocate the Tenant
to Alternate Premises of similar size and condition as the existing Premises
(the “Alternate Premises”).  All Leasehold Improvements and reasonable
moving costs required to bring Alternate Premises to a similar condition as the
existing Premises shall be done at the sole cost and expense of the
Landlord.  The Landlord covenants to arrange the relocation of the
Tenant’s property and equipment at a time and in such a manner as not to
substantially interfere with the Tenant’s business operations.  If the
Alternate Premises are larger in area, the Tenant shall pay rent based on the
square footage of the Premises as outlined herein. In the event that the
Landlord and the Tenant cannot agree on the size, location or condition of
Alternate Premises, then the Landlord and/or the Tenant shall have the right,
sixty (60) days prior to the date upon which the relocation was to take place,
to advise the other party of its intention to terminate this Lease on the date
originally intended for the relocation.

       

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

       

       

      12.           CONSULTANT’S
FEE

       

      The
Landlord hereby agrees to pay Partners Global Corporate Real Estate Inc., in
consideration for the procuring of this Agreement, a Consultant’s Fee comprising
sum of ONE DOLLAR AND SIXTY CENTS ($1.60) per square foot of rentable leased by
the Tenant (14,449 rentable square feet).  The commission shall be
calculated on the gross rentable area of the Premises.  Upon the date
the Tenant and Landlord have executed a binding Lease Amending agreement, said
commission plus applicable tax on such commission is then due and
payable.

       

      13.           PARKING

       

      In
addition to the Tenant’s existing parking rights, throughout the Term of the
Lease and any exercised lease renewal periods, the Landlord shall provide the
Tenant with up to ten (10) additional on-site parking stalls at the then
current monthly rate, subject to annual adjustment, which is currently $130.00
per stall per month, plus H.S.T.  All parking shall be assignable to
any approved assignee or subtenant.

       

      14.           LANDLORD’S
CONDITION

       

      The
obligation of the Landlord to be bound by the terms of this Agreement is subject
to the following condition precedent:

       

      (a) the
Landlord’s negotiation of a Surrender of Lease for the Expansion Area currently
occupied by Stevenson Financial and Atlantic Catch Data; and the Relocation of
Atlantic School of Chartered Accountants, to be confirmed on or before November
16 2007. Landlord’s costs relating to this item 14 (a) shall not exceed $20,000,
plus HST.  All additional costs above this amount shall be at the
Tenant’s sole cost and responsibility.

       

      The above
condition is for the sole benefit of the Landlord.  If the Landlord
fails to notify the Tenant by 5:00 p.m. on the date specified above for
satisfaction of a condition precedent that such condition precedent has been
satisfied or waived, then this Agreement to Lease shall be deemed null and void
and neither party will have any further legal or financial obligation to the
other.

       

      15.           FURTHER
DOCUMENTATION

       

      Upon
unconditional acceptance of this proposal by the Tenant, the Landlord agrees to
provide the Tenant with the Building’s standard form of Lease Amending
agreement, which shall have been completed in accordance with the terms and
conditions contained in this Proposal.

       

      This
proposal is open for consideration until November 15, 2007.

       

      

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

       

       

       

      ACCEPTANCE

       

      We hereby
agree that the above correctly sets forth the terms of our agreement and
undertake to carry out the provisions thereof.

       

      Dated at
Halifax, NS this 8th day of November, 2007.

       

       

      

      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              
                                
                                  
                                    
                                      
                                        	 	 	FLAGSTONE
      MANAGEMENT SERVICES (HALIFAX) LIMITED
	
                                                  /s/

                                              	 
      	Per:	
                                                 

                                              
	
                                                Witness

                                              	 
      	 	 
      
	 
      	 
      	Title 	
                                                Corporate Secretary

                                              
	 
      	 
      	Having
      authority to bind the
Corporation

                                      

                                    

                                  

                                

                              

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

      

      We hereby
agree that the above correctly sets forth the terms of our agreement and
undertake to carry out the provisions thereof.

       

      Dated at
Stellarton, N.S. this 15th day of November, 2007.

      

      
        
          
            
              
                
                  
                    
                      
                        
                          
                            
                              	 
      	 
      	CROMBIE
      DEVELOPMENTS LIMITED
	
                                        /s/

                                    	 
      	
                                      Per: 

                                    	
                                       

                                    
	
                                      Witness

                                    	 
      	 	 
      
	 
      	 
      	Title 	
                                      Vice President,
    Leasing 

                                    
	 
      	 
      	Having
      authority to bind the
Corporation

                            

                          

                        

                      

                    

                  

                

              

            

          

        

      

      

      

      
        
          
            
              
                
                  
                    
                      
                        	 
      	 
      	
                                Per: 

                              	
                                 

                              
	 
      	 
      	 	 
      
	 
      	 
      	Title 	
                                Vice President
    Operations 

                              
	 
      	 
      	Having
      authority to bind the
Corporation

                      

                    

                  

                

              

            

          

        

      

      

       

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

      
 

      SCHEDULE
“A”

       

      

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

       

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

       

      SCHEDULE
“B”

       

      The
Landlord, at Landlord’s sole cost and expense, to provide finishes to the
Landlord’s Base Building standards and deliver the following on the Expansion
Premises only:

       

      1.           Demolition:

       

      “As-is,
Where is”

       

      2.           Concrete:

       

      “As-is,
Where is”

       

      3.           Doors
and Windows:

       

      Exit
doors as required by code from the demised space.

       

      Windows
are to be double glazed and equipped with roller shade blinds.

       

      Provide
suite signage in accordance with the building standard.

       

      4.           Ceiling:

       

      Suspended
acoustic tile ceiling to be building standard fissured tile.

       

      5.           Mechanical:

       

      Plumbing:  “As-is,
Where-is”

       

      HVAC:

      Provide
interior zoned air conditioning, heating and ventilation systems
thermostatically controlled.

      Provide
ductwork distribution as per Base Building & standard light troffers as
required to meet ASHRAE standards.  Present system is two (2) interior
zones per floor plus perimeter zoning to suit needs.

       

      Provide
fresh air levels to meet ASHREA 62 (Latest edition standard) subject to the
Landlord approving the Tenant’s detailed drawings.

       

      Fire
Protection:

      Deleted
in its entirety.

       

      6.           Electrical:

       

      The floor
is sized at 400 amp/120/208/floor.  In general the floor shall be
120/208 volt 3 phase 4 wire.

       

      120/208
volt, 3 phase, 4 wire distribution panels shall be provided for supply of
120/208 volt circuit for mechanical equipment, heating and
lighting.

       

      
      

       

      
        	 	
                 Initials
      Landlord ____

              
	 	
                 Tenant
      ____

              

      

       

       

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

       

      Tenant
currently has 2 panels in their space not including the emergency distribution
in their computer room.  Mechanical equipment power is generally 600
volt feed from “E” level or the penthouse.

       

      7.           Lighting:

       

      Lighting
at desk top level (30” above finished floor) in office areas and at floor levels
in all other areas shall be within the following levels of
illumination:

       

      1.           Office
Area Average 25 – 30 fc interior areas.  Average 40 – 50 fc in areas
closer to windows.  70-80 fc at work station closest to windows, new
section south of computer room approximately 40-50 ft.

       

      2.           Entrance,
storage rooms - Ground level entrance 50 fc.  “S” level storage common
area 25-30- fc

       

      3.           Hallways,
corridors, washrooms, etc. - recent renovated lobby / hallway 10-15 fc. Readings
from the 6th floor.

       

      4.           Parking
Entrances - Average 10fc.

       

      5.           Parking
traffic lanes, parking spaces - Average 10fc - 15fc

       

      Light
fixtures are 1x5 recessed fluorescent troffers.

       

      8.           Lobby:

       

      During
the calendar year of 2008, the Landlord shall upgrade the existing Lobby on the
7th floor to include new carpeting, lighting and paint/wallpaper based on
standards to be mutually agreed.

       

      
         

        
          	 	
                   Initials
      Landlord ____

                
	 	
                   Tenant
      ____

                

        

         

      

       

       

      9

      
        

      

       

      RIDER

       

      Flagstone -
Crombie

      Letter dated
October 30, 2007

      
 

      
        	
                RE:

              	
                Lease
      agreement dated July 26, 2005 between Crombie Developments Limited, as
      Landlord, and West End Capital Services (Halifax) Limited, as Tenant (the
      “Original Lease”), whereby the Tenant changed its name to Flagstone
      Management Services (Halifax) Limited, which Original Lease was amended by
      Amending Agreements dated August 16, 2005, March 20, 2006, May 1, 2006,
      October 18, 2006, November 20, 2006, January 24, 2007, May 18, 2007
      and May 19, 2007 (the “Amendments”), and collectively the Original
      Lease and Amendments are herein referred to as the
  “Lease”.halifax_lease2.htm

    THIS AMENDING AGREEMENT dated the 26th
day of February, 2008

     

    BETWEEN:

     

     

     

      
                                            CROMBIE DEVELOPMENTS
LIMITED

                                                  
(Hereinafter
called the “Landlord”)

     

    OF THE
FIRST PART

     

    - and
-

     

                                                  
FLAGSTONE MANAGEMENT
SERVICES (HALIFAX) LIMITED

                                                  
(Hereinafter
called the “Tenant”)

     

    OF THE
SECOND PART

     

    WHEREAS the Landlord
and the Tenant entered Into a Lease dated the 26th
day of July, 2005 between Crombie Developments Limited, as Landlord, and West
End Capital Services (Halifax) Limited, as Tenant (the “Original Lease”),
whereby the Tenant changed its name to Flagstone Management Services (Halifax)
Limited, which Original Lease was amended by Amending Agreements dates August
16, 2005, March 20, 2006, May 1, 2006, October 18, 2006, November 20, 2006,
January 24, 2007, May 18, 2007 and May 19, 2007 (the "Amendments") and an
Amending Agreement/Renewal Agreement dated December 3, 2007, and collectively
the Original Lease and Amendments and the Amending Agreement/Renewal Agreement
are herein referred to as the "Lease".

     

    AND WHEREAS the
Landlord and the Tenant wish to amend the Lease to reflect the addition to the
Demised Premises of 5,921 certified square feet located in Duke Tower (the "Duke
Tower Expansion Area"), being that area outlined in green on the plan annexed
hereto as Schedule "A-10", thereby increasing the Demised Premises from 14,449
square feet to 20,370 square feet, being that area outlined in red on the plan
annexed hereto as Schedules "A-9" and "A-10", to take effect on the 21st day of
April, 2008.

     

    WITNESSETH that in
consideration of the mutual covenants and agreements hereinafter contained, the
parties hereto respectively covenant and agree each with the other as
follows:

     

    1.                                
           Page 1,
Article 1.01 (a), Area of Premises, of the Lease is amended effective on the
21st day of April, 2008 by deleting the present article and substituting
therefor the following:

     

    
      	
              AREA
      OF PREMISES

            	
              14,449
      square feet located on the 7th
      floor of Cogswell Tower as outlined on Schedule "A-9" of the
      Amending/Renewal Agreement dated December 3, 2007; and 5,921 certified
      square feet located on the 2nd
      floor of Duke Tower, as outlined on Schedule "A-10", annexed
      hereto.

            

    

     

    2.                                            Page
1, Article 1.01 (c), Minimum Rent, of the Lease is amended effective on the 21st
day of April, 2008 by deleting the present article and substituting therefor the
following:

     

    
      	
              MINIMUM
      RENT

            	
              On
      14,449 square feet of Cogswell Tower Commencing March 1, 2008 and ending
      July 31, 2014 - Twelve Dollars and thirty-five cents ($12.35) per square
      foot per annum; plus HST; and

            

    

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
       

      
        	
                 

              	
                On
      5,921 square feet of Duke Tower - Commencing April 21, 2008 and ending
      July 31, 2014 - Fourteen dollars and twenty-five cents ($14.25) per square
      foot per annum.

              

      

       

    

    
      
        
          	
                  3.

                	
                  Page
      2, Article 15.01, Fixturing Period, of the Lease is amended effective on
      the 21st day of April, 2008 by adding the following to the present
      article:

                

        

      

    

     

    
      	
              FIXTURING
      PERIOD

            	
              On
      the Duke Tower Expansion Area, the Landlord and the Tenant hereby covenant
      and agree that the Tenant shall have a Fixturing Period commencing on or
      before March 1, 2008 and expiring on April 20, 2008.  It is
      agreed and understood that the Tenant shall be provided vacant possession
      of the Expansion Area.  During this period, the Tenant shall not
      be responsible for the payment of Minimum and Additional
      Rents.  The Tenant shall however be responsible for the payment
      of utilities consumed on the Premises during this Fixturing Period,
      cleaning and business taxes.

            

    

     

    
      
        	
                 

              	
                During
      the Fixturing Period, the Tenant shall do all the Tenant's Work within the
      confines of the Demised Premises, shall comply with all rules and
      regulations set by the Landlord for the conduct of such work, and shall be
      subject to all the terms and conditions of the Lease, including the
      provisions relating to the liability of the Tenant for its acts or
      omissions or the acts or omissions of its servants, agents or employees,
      and shall indemnify and save harmless the Landlord with respect
      thereto.  Should the Tenant complete it's Tenant's Work prior to
      April 20, 2008, Tenant shall have the right to occupy the Premises for
      business purposes under the terms of the Fixturing Period
      herein.

              

      

       

    

    
      
        
          
            	
                    4.

                  	
                    Page 26. Article
      13.02, Relocation, of the Lease is amended effective on the 21st day of
      April, 2008 by adding the following to the present
  article:

                  

          

        

      

    

     

    
      	
              RELOCATION

            	
              On
      the Duke Tower Expansion Area, the Landlord and the Tenant hereby covenant
      and agree that the Landlord, acting reasonably, shall have the option at
      any time during the Term of the Lease, and upon one hundred twenty (120)
      days prior written notice to the Tenant, to relocate the Tenant to
      Alternate Premises of similar size and condition as the existing Premises
      (the "Alternate Premises").  All Leasehold Improvements and
      reasonable moving costs required to bring Alternate Premises to a similar
      condition as the existing Premises shall be done at the sole cost and
      expense of the Landlord.  The Landlord covenants to arrange the
      relocation of the Tenant's property and equipment at a time and in such a
      manner as not to substantially interfere with the Tenant's business
      operations.  If the Alternate Premises are larger in area, the
      Tenant shall pay rent based on the square footage of the Premises as
      outlined herein.

            

    

     

    
       

      
        
          
            
              	
                      5.

                    	
                      The Lease is amended
      effective on the 21st day of April, 2008 by adding Schedule "A-10",
      annexed hereto.

                    

            

          

        

      

       

      
        
          
            
              
                	
                        6.

                      	
                        Schedule "B-1",
      annexed hereto, shall be added to the Lease effective on the 21st
      day of April,
2008.

                      

              

            

          

        

         

         

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    
       

      
        
          
            
              	
                      7.

                    	
                      Schedules "D-1" and
      "E-1", Taxes and Operating Costs, annexed hereto, shall be added to the
      Lease effective on the 21st
      day of April,
2008.

                    

            

          

        

      

    

     

    8.                                           On
the Duke Tower Expansion Area – The Landlord covenants and agrees that the
following shall be excluded from the proportionate share of Operating Costs
payable by the Tenant:

     

    
      
        	
                 
      

              	
                i)
      premise cleaning;

              

      

      
        	
                 
      

              	
                ii)
      Base Building HVAC; and

              

      

      
        	
                 
      

              	
                iii)
      Electricity, which shall be separately metered, separately billed and
      payable by the Tenant at its sole
  responsibility.

              

      

      

      
        	
                 
      

              	
                The
      Tenant's proportionate share of Operating Costs for this 5,921 square feet
      is estimated at $8.05 per square foot per annum for the Year
      2008.

              

      

      

      
        	 
      	
                The
      Tenant acknowledges the Landlord is not providing premise cleaning and
      Base Building HVAC to this space. In addition, the Tenant shall be
      responsible for maintenance, repair and replacement of all mechanical and
      electrical systems dedicated to the
Premises.

              

      

    

     

    
      
        
          
            
              	
                      9.

                    	
                      The Lease is amended
      effective on the 21st
      day of April, 2008 by adding Schedule "C-10", annexed
    hereto.

                    

            

          

        

      

    

     

    10.                                         Schedule
"I", Existing Premise Equipment Duke Tower Expansion Area, annexed hereto, shall
be added to the Lease effective on the 21" day of April, 2008.

     

    11.                                         Article
13 and Schedule "H", Leasehold Allowance, of the Amending Agreement/Renewal
Agreement dated December 3, 2007 does not apply to the Duke Tower Expansion
Area.

     

    12.                                         Page
28, Article 13.13, Commissions, of the Lease is amended effective on the 21st
day of April, 2008 adding the following:

     

    
      	
              COMMISSIONS

            	
              On
      the Duke Tower Expansion Area, the Landlord hereby agrees to pay Partners
      Global Corporate Real Estate Inc., in consideration for the procuring of
      this Agreement, a Consultant's Fee comprising sum of Three dollars and
      zero cents ($3.00) per square foot of rentable leased by the Tenant (5,921
      square feet).  The commission shall be calculated on the gross
      rentable area of the Premises.  Upon the date the Tenant and
      Landlord have executed a binding Lease Amending agreement, said commission
      plus applicable tax on such commission is then due and
      payable.

            

    

     

    13.                                         All
other terms and conditions of the Lease shall, save for Paragraph(s) 1, 2, 3, 4,
5, 6, 7, 8, 9, 10, 11 and 12 hereof, remain the same and unaltered and shall
continue in full force and effect.

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    14.                                          This
Amending Agreement is incorporated in and
made an integral part of the Lease and shall therefore be subject to its
terms and conditions in the same manner as if the amendments herein were
original clauses of the Lease.

     

    IN WITNESS WHEREOF
the Parties hereto have properly executed These Presents the day and year first
above written.

    

    

    
      
        
          	
                  SIGNED, SEALED AND DELIVERED

                  in
      the presence of

                   

                   

                   

                   

                   

                   

                   

                   

                   

                   

                   

                   

                   

                   

                                                                                   

                  Witness

                	
                   

                   

                  CROMBIE
      DEVELOPMENTS LIMITED

                  (the "Landlord")

                   

                  _______________________________

                   

                   

                  _______________________________

                   

                   

                   

                   

                  FLAGSTONE MANAGEMENT SERVICES
      (HALIFAX) LIMITED

                  (the "Tenant")

                   

                  ______________________________

                   

                   

                  
                                                 Director                          

                     

                  

                

        

      

    

    

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    
 

    

    SCHEDULE
“A-9”

    

    

    

     

     

     

     

     

    
      

      
        
          	
                  Initial
      Landlord

                	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	
                  Tenant

                	 
      	 
      

        

      

      

    

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    
 

    

     

     

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    

    SCHEDULE
"B-1"

    

    DUKE
TOWER

    5251
DUKE STREET

    HALIFAX,
NS

     

    LEGAL
DESCRIPTION

     

    ALL that
certain lot, piece or parcel of land situate, lying and being in the City of
Halifax, bounded by Duke Street, Market Street, Cogswell Street and
Barrington Street, as shown bordered in red on plan entitled, ''Scotia Square
Boundary of Stages 2, 3, 4, 5, 6, 7, 8, and 9", dated January 26, 1970, and
being on file in the office of the City Engineer for the City of Halifax, at
City Hall, Halifax as Plan No. TT-10-17910; the said land being more
particularly described as follows:

     

    BEGINNING
at a point on the western official street line of Barrington Street distant
northwardly ten feet (10') from the point of intersection of the said western
official street line of Barrington Street and the official northern street line
of Duke Street.

     

    THENCE
southwestwardly by an internal angle of one hundred and thirty-four degrees
fifty-four minutes fifteen seconds (134E 54'15") to the aforesaid western
official street line of Barrington Street, for a distance of fourteen feet and
fourteen hundredths of a foot (14.14') to the said official northern street line
of Duke Street;

     

    THENCE
westwardly along the said proposed northern street line of Duke Street for
a distance of two hundred twenty-six feet and seventy-four hundredths of a foot
(226.74');

     

    THENCE
westwardly by a deflection angle to the right of seven degrees seven minutes
thirty seconds (07E 07'30") for a distance of eighty feet and sixty-three
hundredths of a foot (80.63');

     

    THENCE
westwardly by a deflection angle to the left of seven degrees seven minutes
thirty seconds (07E 07'30") for a distance of eighty-one and ninety-four
hundredths of a foot (81.94');

     

    THENCE
southwestwardly by a deflection angle to the left twelve degrees forty-eight
minutes fifteen seconds (12E 48'15'') for a distance of forty-five feet and
twelve hundredths of a foot (45.12');

     

    THENCE
westwardly by a deflection angle to the right of twelve degrees forty-eight
minutes fifteen seconds (12E 48'15") for a distance of twenty-three feet
(23');

     

    THENCE
northwestwardly by an internal angle of one hundred thirty-five degrees
thirty-six seconds (135E 00'36”) to the said official northern street line
of Duke Street for a distance of fourteen feet and fourteen hundredths of a
foot (14.14') to the official eastern street line of Market Street;

     

    THENCE
northwardly along the said proposed eastern street line of Market Street for a
distance of eight hundred seventy-nine feet and twenty-eight hundredths of a
foot (879.28') to the official southern street line of Cogswell
Street;

     

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

     

    

    Page
9

     

    Legal
Description                                                                                           Page 2

     

     

    THENCE
eastwardly along the said proposed southern street line of Cogswell Street for a
distance of one hundred eighty-nine feet and ninety-six hundredths of a foot
(189.96’) to the beginning of a curve to the right having a radius of one
hundred ninety-eight feet and sixty-eight hundredths of a foot
(198.68');

     

    THENCE in
a generally southeastwardly direction along the said curve to the right have a
radius of one hundred ninety-eight feet and sixty-eight hundredths of a foot
(198.68') being the official southwestern street line of Cogswell for a distance
of one hundred seventy-three feet and ninety-six hundredths of a foot (173.96’)
to the end of the aforesaid curve to the right having a radius of one hundred
ninety-eight feet and sixty-eight hundredths of a foot (198.68’);

     

    THENCE
continuing southwardly along the said official southwestern street line of
Cogswell Street for a distance of one hundred two feet and thirty-nine
hundredths of a foot (102.39') to the beginning of a second curve to the right
having a radius of one hundred forty-two feet and thirty-two hundredths of a
foot (142.32');

     

    THENCE
southeastwardly and southwardly along the said second curve to the right having
a radius of one hundred forty-two feet and thirty-two hundredths of a foot
(142.32') being the official southwestern street line of Barrington Street for a
distance of ninety-six feet and sixteen hundredths of a foot (96.16') to the end
of the aforesaid second curve to the right having a radius of one hundred
forty-two feet and thirty-two hundredths of a foot (142.32’);

     

    THENCE
southwardly along the official western street line of Barrington Street for a
distance of two hundred ninety-nine feet and twenty-one hundredths of a foot
(299.21') to the western official street line of Barrington Street;

     

    THENCE
southwardly along the said western street line of Barrington Street for a
distance of fifty-four feet and forty-one hundredths of a foot
(54.41');

     

    THENCE
continuing southeastwardly along the said official southwestern street line of
Cogswell Street for a distance of one hundred two feet and thirty-nine
hundredths of a foot (102.39') to the beginning of a second curve to the right
having a radius of one hundred forty-two feet and thirty-two hundredths of a
foot (142.32').

     

     

     

     

    
 

    
       

       

      
        

        
          
            	
                    Initials
      Landlord

                  	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	
                    Tenant

                  	 
      	 
      

          

        

        

      

       

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    

    SCHEDULE
"C-10"

     

    1.00                    
    LANDLORD'S WORK

     

    
      	
              1.01

            	
              The
      Duke Tower Expansion Area shall be turned over to the Tenant by the
      Landlord on an

            

    

     

    
      	
               
      

            	
              "As-is,
      Where-is" basis.

            

    

     

     

     

     

     

    
       

      
        	
                2.00  
      

              	
                TENANT'S
      WORK

              

      

       

    

    
      
        
          	
                  2.01  
      

                	
                  The
      Tenant Shall Supply to the Demised
Premises:

                

        

         

      

    

    
      	
               
      

            	
              (a)

            	
              All
      internal partitioning, including
decorating.

            

    

     

    
      	
               
      

            	
              (b)

            	
              All
      electrical and telephone outlets, light switching and the necessary wiring
      from the electrical room.  Minimum light switching 1 switch for
      each 900 square feet.

            

    

     

    
      	
               
      

            	
              (c)

            	
              All
      special air-conditioning, heating and ventilation requirements over and
      above the Building standard including all operational costs associated
      therewith.

            

    

     

    
      	
               
      

            	
              (d)

            	
              All
      plumbing and mechanical changes, subject to the prior written approval of
      the Landlord.

            

    

     

    
      	
               
      

            	
              (e)

            	
              All
      other special requirements, such as telephone conduit and service,
      additional or relocation of lighting fixtures and wiring made necessary by
      the Tenant's plan, all subject to final approval of the
      Landlord.

            

    

     

    
      	
               
      

            	
              (f)

            	
              Supply
      and installation of electrical and water meters to computers or other
      specialized equipment.

            

    

     

     

    
      
 

      
         

         

        
          

          
            
              	
                      Initials
      Landlord

                    	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	
                      Tenant

                    	 
      	 
      

            

          

          
 

        

      

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
 

    SCHEDULE
“D-1”

    DUKE
TOWER

     

    1.00              
          TAXES

     

    
      	
              1.01

            	
              In
      this Schedule

            

    

     

    
      	
               
      

            	
              (a)

            	
              "TAX"
      means all taxes, rates, duties and levies payable by the Landlord in
      respect of the Building and the Lands described in Schedule "B" of the
      Lease, upon which the Demised Premises are
  located.

            

    

     

    
      	
               
      

            	
              (b)

            	
              If
      "TAX" as herein defined increases by reason of any installation made in or
      upon, or any alterations made in or upon the Demised Premises by the
      Tenant, the Tenant shall pay the amount of such increase as Additional
      Rent.

            

    

     

    
      	
               
      

            	
              (c)

            	
              The
      Tenant shall pay the Landlord as Additional Rent the "Tenant's
      Proportionate Share of  "Tax" which shall be the proportion thereof
      equal to the product obtained by multiplying "Tax" by a fraction the
      numerator of which is the floor area of the Demised Premises and the
      denominator of which is the aggregate of all Rentable Space in the
      Building of which the Demised Premises form a
  part.

            

    

     

    
      	
               
      

            	
              (d)

            	
              The
      Landlord shall determine the appropriate percentage of municipal taxes and
      fire protection rates payable by the Landlord in respect of the Building
      and the Lands described in Schedule "B" of the
  Lease.

            

    

     

    
      	
               
      

            	
              (e)

            	
              The
      Tenant covenants to pay to the Landlord as Additional Rent at the same
      times and in the same manner as the Tenant's Proportionate Share of tax,
      defined in paragraph 1.01 (c) of this Schedule, the Tenant's proportionate
      share of all business occupancy tax from time to time payable by the
      Landlord in respect of the Common Areas of the
  Building.

            

    

     

    
      	
              1.02

            	
              The
      Landlord reserves the right to Invoice the Tenant for their proportionate
      share of taxes on the same basis and manner upon which the Landlord is
      invoiced for such taxes as contained in this Schedule, by the Taxing
      Authority. The Tenant agrees to pay as Additional Rent such taxes as
      determined aforesaid within thirty (30) days of the Landlord rendering its
      account for same to the Tenant.

            

    

     

    
      	
              1.03

            	
              The
      Tenant for covenants to pay as and when they fall due all taxes and rates
      charged in connection with the occupancy of the Demised or assessed or
      levied in respect of any business or other activity carried on upon the
      Demised Premises or in respect of the Tenant's property, fixtures or
      equipment and to indemnify and reimburse the Landlord upon demand for any
      of such taxes which may be assessed to and payable by or paid by the
      Landlord.

            

    

     

     

     

    
      
         

         

        
          

          
            
              	
                      Initials
      Landlord

                    	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	
                      Tenant

                    	 
      	 
      

            

          

          
 

        

      

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

    
 

    SCHEDULE
“E-1”

    DUKE
TOWER

     

    

    1.00         OPERATING COSTS

     

    
      	
               
      

            	
              (a)

            	
              The
      Tenant agrees to pay to the Landlord, as Additional Rent, a proportionate
      share determined in the manner prescribed In this Clause of the Operating
      Costs of the Building, which the Landlord deems to be applicable to the
      operation of the Building.

            

    

     

    
      
        	
                 
      

              	
                 

              	
                The
      Landlord covenants and agrees that the following shall be excluded from
      the proportionate share of Operating Costs payable by the
      Tenant:

              

      
                               

    
      	 
      	
              i)

            	
              premise
      cleaning;

            
	 
      	
              ii)

            	
              Base
      Building HVAC; and

            
	 
      	
              iii)

            	
              Electricity,
      which shall be separately metered, separately billed and payable by
      the Tenant at its sole
responsibility.

            

    

     

    
      	
               
      

            	
              (b)

            	
              "Operating
      Costs" shall, for the purpose of this Clause, include amounts paid or
      allocated by the Landlord or by others on behalf of the Landlord for the
      operation of the Building and for complete maintenance, repair and
      janitorial services for the Building or components therein and Land or
      components thereon provided that if the Building is less than one hundred
      percent (100%) occupied during any part of a calendar year, Operating
      Costs shall mean the amount obtained by adjusting the actual Operating
      Costs for such calendar year to a one hundred percent (100%) Building
      occupancy level, such adjustment to be made by adding to the actual
      Operating Costs during such calendar year such additional costs as would
      have been incurred if the Building had been one hundred (100%) percent
      occupied.  Without limiting the generality of the foregoing,
      Operating Costs shall include, without duplication; the costs of all
      repairs required in the maintenance of the Building, electricity not
      otherwise chargeable to the Tenant, air-conditioning and window cleaning,
      all fire, casualty, liability and other insurance, the amount paid under
      service contracts with Independent contractors, salaries, wages and other
      remuneration and the costs of benefits paid to employees of the Landlord
      engaged in administering, operating and maintaining the Building the fair
      market rental value, prevailing from time to time, of space occupied by
      the Landlord's agents or employees for administrative, supervisory or
      management purposes relating to the Building and the Land and all other
      expenses paid or payable by the Landlord in connection with the operation
      of the Building but excluding taxes and capital expenditures, excepting
      those amounts expended of a capital nature, which in the Landlord's
      opinion will reduce energy consumption or improve efficiency for the
      purpose of reducing Operating Costs.  Any provision for
      depreciation on or in respect of the Building, interest on debt or capital
      retirement of debt and any amounts directly chargeable by the Landlord to
      any tenant or tenants of the Building or the proceeds realized by the
      Landlord from any Insurance claims made by the Landlord in connection with
      repairs or rebuilding done by the Landlord, will be excluded in computing
      Operating Costs.

            

    

     

    
      	
               
      

            	
              (c)

            	
              There
      shall be included in Operating Costs, management and/or administration
      fees equal to fifteen percent (15%) of Clause 1:00 (b)
    above.

            

    

    
      	
               
      

            	
              (d)

            	
              The
      Tenant's Proportionate Share shall be the same proportion of the Operating
      Costs of the Building which the Landlord deems to be applicable to the
      operation of the Building as the total floor area of the Demised Premises
      bears to the total floor area of the Rentable Space in the
      Building.

            

    

    
      	
               
      

            	
              (e)

            	
              Prior
      to the beginning of each calendar year or as soon thereafter as possible,
      the Landlord shall furnish the Tenant with a statement showing an estimate
      of Operating Costs.  The Tenant shall pay to the Landlord the
      Tenant’s Proportionate Share of the said estimated cost in equal monthly
      installments on the first day of each month throughout the calendar year.
      Regulation

            

    

     

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    
      	
               
      

            	
              (f)

            	
              Within
      a reasonable period of time following the end of each calendar year, the
      Landlord shall furnish the Tenant with an audited statement of the actual
      Operating Costs of the Building which the landlord deems to be applicable
      to the operation of the Building thereof and the actual amount thereof
      payable by the Tenant, showing in reasonable detail all information
      relevant and necessary to the exact calculation and determination
      thereof.  If such amount is greater or less than the payment on
      account thereof made by the Tenant, adjustments will be made between the parties
      hereto within thirty (30) days after delivery of such
      statement.

            

    

     

     

     

    
      
        
           

          
            

            
              
                	
                        Initials
      Landlord

                      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	
                        Tenant

                      	 
      	 
      

              

            

            

          

        

      

    

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

     

     

    Page
10

     

    SCHEDULE
"I"

     

    EXISTING
PREMISE EQUIPMENT DUKE TOWER EXPANSION AREA

     

    The
Tenant shall have the exclusive use of all of the equipment located in the
Premises and the Landlord shall provide the equipment in ‘as is, where is'
condition without warrantee.  The Tenant shall be responsible for
maintenance, repair and replacement of all said equipment.  At the
expiry of the Term, the Tenant shall not be responsible for removing the
equipment and it shall remain in 'as is, where is’ condition.  The
following Is a summary of the equipment:

     

    Equipment
includes, but not limited to, the following:

     

    1.           500
KVA generator;

    2.           850
gallon fuel tank;

    3.           650
lb preactlon fire suppression system;

    4.           two
(2) A/C Liebart units — one (1) at 1,485 lbs and one (1) at 1,470 Ibs; one TRANE
A/C unit — one at 360 pounds;

    5.           one
(1) water detection panel;

    6.           one
(1) graphic annunicator;

    7.           one
(1) fire alarm panel;

    8.           all
roof top units dedicated to the Duke Tower Expansion Area for which Tenant shall
contract a maintenance agreement and provide Landlord with a copy.

     

    For
clarity, all equipment to be maintained and repaired by the Tenant is listed on
the plans by Campbell Corneau Engineering and Site Plus Inc. dated 00/AU/14
Project #200600D.

     

     

     

     

    
      
        
           

           

          
            

            
              
                	
                        Initials
      Landlord

                      	 
      	 
      
	 
      	 
      	 
      
	 
      	 
      	 
      
	
                        Tenant

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