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2011/08/25 Special Council MtgNiagaraaulls PRAYER: Councillor Pietrangelo SPECIAL COUNCIL MEETING August 25, 2011 DISCLOSURES OF PECUNIARY INTEREST Disclosures of pecuniary interest and a brief explanation thereof will be made for the current Council Meeting at this time. REPORTS 1. Chief Administrative Officer BDD- 2011 -06 - City of Niagara Falls and Niagara Parks Commission, Visitor Transportation System Agreement -AND - Email from Sue McDowell, Fallsview/ Victoria Centre BIA NOTE: the VTS agreement is attached to the proposed execution bylaw . MAYOR'S REPORTS, ANNOUNCEMENTS BY -LAWS The City Clerk will advise of any additional by -laws or amendments to the by -laws listed for Council consideration. 2011 -110 A by -law to authorize the execution of an Agreement with the Niagara Parks Commission respecting a Visitor Transportation System (VTS). 2011 -111 A by -law to designate Block 119, Registered Plan 59M -379, not be subject to part-lot control. 2011 -112 2011 -113 2011 -114 - 2 - A by -law to designate the whole of the City of Niagara Falls as a site plan control area, to define the classes of development that may be undertaken without the approval of plans and drawings, and to delegate to an appointed officer of the municipality the powers or authority of council permitted under section 41 of the Planning Act, R.S.O. 1990, c.P.13. A by -law to appoint Councillor Vince Kerrio as Acting Mayor. A by -law to adopt, ratify and confirm the actions of City Council at its special meeting held on the 25 day of August, 2011. NEW BUSINESS Niagara REPORT TO: SUBMITTED BY: SUBJECT: RECOMMENDATION EXECUTIVE SUMMARY Mayor James M. Diodati and Members of Municipal Council City of Niagara Falls Business Development BDD- 2011 -06 City -NPC Visitor Transportation System Agreement BDD- 2011 -06 August 25, 2011 That Council approve the Agreement between the City and the Niagara Parks Commission (NPC) related to the operation of the Visitor Transportation System (VTS) for a ten (10) year term. The NPC and City of Niagara Falls have finalized the terms of the VTS agreement. Under the terms of the new funding model, the BIA's and City VTS agreement are no longer required. The highlights of the new agreement between the City and the NPC are as follows: • The City will manage, operate, and maintain the Blue and Red Lines. • The NPC will manage, operate, and maintain the Green Line. • Over the ten year term of the Agreement, NPC will pay to the City an annual contribution of $1M (plus applicable 2.5% annual escalator (compounded)) towards the operating costs of the Red and Blue Lines of the VTS system. • NPC is entitled to 100% of VTS gross ticket revenues from the 4 kiosks which will be located in NPC Parks and responsible for the operating and maintenance costs associated with such kiosks for the 10 year term of the Agreement. • For each year of the 10 year term of the Agreement, the annual VTS gross ticket revenues from the 5 kiosks owned by the City which will be located on property along the Red Line or Blue Line and any walk -ons shall be allocated as follows: ► until such time as the VTS gross ticket revenues from all kiosks, walk -ons and discounted VTS tickets for the applicable year equals $1M (plus applicable 2.5% annual escalator), 100% will go to NPC and NPC agrees to reimburse the City out of such revenues for the costs of the day -to -day operation and maintenance of the 5 City owned kiosks until said amount is reached. The City will be responsible for the operating and maintenance of August 25, 2011 2 BDD- 2011 -06 the 5 City owned kiosks, and • VTS gross ticket revenues from kiosks, walk -ons, and discounted VTS tickets for the applicable year above $1M (plus applicable 2.5% annual escalator), NPC and City will share equally (50 % -50 %) inclusive of costs for operating and maintaining kiosks. • For each year of the 10 year term of the Agreement, NPC and City will share equally the revenue from the sale of VTS tickets from the kiosk at Union Station in Toronto after first deducting the costs to operate and maintain the kiosk. • For each year of the 10 year term of the Agreement, NPC and City will share equally (50 % -50 %) the VTS gross ticket revenues from the one kiosk at GONia Niagara Falls station less the costs to operate the Queen Street route and to operate and maintain the one kiosk at GO/Via Niagara Falls station. • During the 10 year term of the Agreement, a holder of a VTS tickets is entitled to travel on each of the Green, Red, and Blue Lines and transfer between such Lines for two successive days. • NPC agrees to make available to members of the BIA's tickets, at a price per ticket of $2.50 (plus applicable 2.5% annual escalator (compounded)) provided that all such tickets (i) are offered only to guests /visitors /tourists; and (ii) are packaged /bundled with a hotel room or another product/service of a value of no less than $40. • NPC will have input into the substance and form of ITS reports to be developed during the implementation of the ITS system. • The route of the Green Line will run between Table Rock and the intersection of the Victoria Avenue and River Road. • The disembarkment and boarding of the Red Line and /or Blue Line in the Parks shall be limited to Table Rock. The concept of Advisory Committee in the Agreement will be redefined as the VTS Feedback Committee. The purpose of the VTS Feedback Committee will be to provide the BIAs with a forum for discussion and voice to communicate their concerns and opinions of the performance of the new VTS system. The VTS Feedback Committee will have no decision making authority but will make recommendations to the City and NPC on the matters brought before it. The VTS Feedback Committee will be comprised of 2 representatives from each of (i) NPC, (ii) City, and (iii) each BIA. One of the representatives of NPC shall serve as the chairperson of the VTS Feedback Committee. • If the City builds the bus terminal with sufficient bus storage bays, the City agrees to lease /license to NPC that number of storage bays equal to NPC's pro rata share of the total number of VTS buses, up to a maximum of 8 storage bays, for an annual fee of $1 per storage bay plus NPC's pro -rata portion of over -head costs associated with such storage (i.e. electricity, heating, etc.) August 25, 2011 3 BDD- 2011 -06 In addition to the general indemnity clauses in the Agreement, the following is intended regarding the indemnification by or of the parties: ► Bus orders and bus delivery and City run building projects (including the building and supply of kiosks) contemplated by and funded through the Agreement and the Contribution Agreement shall be the sole responsibility of City, and City shall not look to NPC for indemnity for such orders, delivery and projects. Notwithstanding the foregoing, in this paragraph, the City's indemnification responsibility with respect to bus order and bus delivery is subject to NPC finalizing its bus specifications and delivering such specifications to the City on or before August 15, 2011. • Road improvements in the Parks contemplated by and funded through the Agreement and the Contribution Agreements shall be the sole responsibility of NPC, and NPC shall not look to City for indemnity for such road improvements. • Any press releases relating to this Agreement and the VTS system project shall be jointly agreed to and released. • City and NPC agree that the Agreement is subject to approval by the members of the Niagara Parks Commission and ratification by Niagara Falls City Council. BACKGROUND In collaboration with BIA's and NPC, an operating funding model had been developed for the VTS. Under this model, the City would run the Red and Blue Lines with the BIA's contributing $600,000 with an annual escalation of 2.5% for up to 10 years. The City reallocated $400,000 from the Falls Shuttle program to cover the balance of the operating costs for the Red and Blue Lines. The NPC would operate the Green Line which services the NPC property and would be responsible for operating costs of the Green Line. Due to various outstanding issues regarding the NPC and City agreement and the extremely sensitive timeline for the project, the Province appointed a mediator to mediate the outstanding issues on July 28, 2011. Upon conclusion of the full day mediation, a new financial and operating model was developed between the City and NPC which no longer required the financial support of the BIA's. The BIA's have been informed of the new model and that their agreement with the City will not be executed. FINANCIAL IMPACT The NPC will pay to the City $1 million annually during the term of the agreement towards the operating costs of the Red and Blue Lines with a 2.5% escalation compounded annually. In addition, the $400,000 which was reallocated from the Falls Shuttle to support the VTS will serve as an annual reserve fund for the Red and Blue Item Budget Rolling Stock - Red & Blue Line: • 11 articulated buses (60') • 5 articulated buses (40') 10,928,400 Rolling Stock - Green Line: • 9 articulated buses (60') • 2 articulated buses (40') 7,862,300 ITS /Fare Box 2,600,000 10 Ticket Kiosks: 650,000 Branding Platform 325,000 Operating, Maintenance, & Storage Facility Architect Fees 1,450,000 Site Preparation, Services, Access, IT Connection 1,000,000 Building Construction 14,650,000 FF &E, Project Management, Geotechnical, Environmental 800,000 Station, Upgrade, Drop -off and Pick -up Points 1,000,000 Intersection, Lane Improvements 1,900,000 NPC River Road Realignment 5,835,200 Subtotal $49,000,900 HST $999,100 Total $50,000,000 August 25, 2011 4 BDD- 2011 -06 Lines. Also, the balance of FMC funds which have been dedicated to the VTS costs to date will be directed to the City to be used for cash flow support, operating deficiencies, major maintenance, and capital requirements towards the City's Red and Blue Lines. An agreement regarding the balance of the funds will be prepared between OLG /FMC and the City of Niagara Falls. As Council is aware, the Capital Budget for the project is $50 million comprised of $25 million provided by the Federal and Provincial governments respectively. The Capital Budget will be allocated as follows: August 25, 2011 5 BDD- 2011 -06 With the revised funding and operating model finalized, the City can proceed to enter into contribution agreements with the Federal and Provincial governments for the $50 million. CITY COUNCIL STRATEGIC PRIORITY Economic vitality and convenient, accessible and sustainable transportation within the City and moving forward with the implementation of the Visitor Transportation System. Recommended by: Respectfully submitted; SF /Ib ( Serge Felicetti, Director of Business Development , odd Chief ministrative Officer r (8/23/2011) Dean Iorfida - Re: people mover Page 1 From: Sue McDowell < suemcdowell @fallsviewboulevard.com> To: Dean Iorfida <diorfida @niagarafalls.ca> CC: " <hoakes @cliftonhill.com >" <hoakes @cliftonhill.com >, " <nshahani @gmail.co... Date: 8/18/2011 1:04 PM Subject: Re: people mover Sue McDowell Sent from my iPhone Without benefit of spellcheck On 2011- 08 -18, at 11:24 AM, "Dean Iorfida" <diorfida @niagarafalls.ca> wrote: > Sue: > The special meeting of City Council on the People Mover (Visitor Transportation) agreement between the City and the Niagara Parks Commission will take place a week from today: > Thursday, August 25, 2001 at 5:30 p.m., Council Chambers > If someone wishes to speak, they should notify me in writing. > Hopefully, I will have an agenda that I can send out early next week. I would remind you of an email that was sent out last week (see below). > Thanks > Dean > Hi Dean & thank you... My BIA 's are in support of this. > > The partnering BIAs should take comfort in the following: > 1) They are not being looked to for a contribution. > 2) Their members can still purchase the tickets at the previously stipulated $ 2.50, as a part of a package of goods and services with a minimum value of $40.00, which was part of the proposed agreement with the BIA's. > 3) The rules concerning shuttles remain, as is. Shuttles are unlikely to even be mentioned in the agreement with the NPC. > Once again, these matters are close to being finalized and the BIA's will get full details in the near future. Assure your members that the developments, in my opinion, are positive from a BIA perspective. > Dean > Dean lorfida, City Clerk > Niagara Falls > 905 - 356 -7521, Ext. 4271 > 905 - 356 -9083 (Fax) »» "Sue McDowell" < suemcdowell @fallsviewboulevard.com> 8/18/2011 9:56 AM »> (8/23/2011) Dean lorfida - Re: people mover Page 2 > Hi Dean: > Please notify myself & the BIA's when the people mover issue comes before > council. We are very concerned about this & would like to make a > presentation. > Thank you! > > Sue McDowell > Executive Director > Fallsview BIA > > P.O. Box 655 > > Niagara Falls, Ontario > L2E 6V5 > tel: 905 358 7137 cell: 905 348 4880 fax: 905 358 5891 > Visit our website- < http : / /www.fallsviewboulevard.com /> > www.fallsviewboulevard.com > join us facebook for all the latest updates - Niagara Fallsview Boulevard > Laugh often, long and loud. Laugh until you gasp for breath. > Come let us make you laugh - Fallsview Boulevard!! > - 6 - April 20, 2009 Council Minutes COMMUNICATIONS AND COMMENTS OF THE CITY CLERK Child Find Ontario- Request that the month of March be proclaimed as "Missing Children's Month" and May 25 be declared as "National Missing Children's Day" in the City of Niagara Falls. RECOMMENDATION: For the Approval of Council. ORDERED on the motion of Councillor Kerrio, seconded by Councillor Pietrangelo that the communication be approved. FINANCE REPORTS REPORTS Carried Unanimously F- 2009 -22 - The Use of Excess Funds- Downtown Revitalization. The report recommends that Council make a decision on the use of the remaining Downtown Revitalization funds. ORDERED on the motion of Councillor Diodati, seconded by Councillor Thomson that Mordechai Grun be permitted to make a presentation. with Councillor loannoni opposed. Motion Carried Mordechai Grun, Chair, on behalf of the Downtown BIA, made a brief presentation informing Council of the Downtown Beautification project. ORDERED on the motion of Councillor Thomson, seconded by Councillor Fisher that the remaining funds from the Downtown Public Realm Studies fund be provided for Downtown streetscape and beautification and that the Downtown B.I.A. provide a list of the different projects where the money will be allocated. Motion Carried with Councillor loannoni opposed. RATIFICATION OF COMMUNITY SERVICES COMMITTEE MATTERS ORDERED on the motion of Councillor loannoni, seconded by Councillor Kerrio that the actions taken in Community Services Committee, on April 20, 2009 be approved. Carried Unanimously 1. That the minutes of the April 6, 2009 meeting be adopted as recorded. 2. People Mover Project Update Report That the City indicate to the Federal Government that the municipality is working diligently and is committed to the People Mover System; and that the Federal Government be requested to work with the municipality and extend the June deadline on the People Mover funding. 3. TS- 2009 -02 Tourist Area Parking Demand Study That the Tourist Area Park Demand Study be received; Staff proceed with meetings with the appropriate stakeholders and report back to Council. 4. PD- 2009 -25 Matters Arising from Municipal Heritage Committee Regarding the Oswald House Fence, 2922 St. Paul Avenue PD- 2009 -32 - Municipal Staff Review Regarding the Oswald House Fence, 2922 St. Paul Avenue August 31, 2009 Council Minutes CONSENT AGENDA THE CONSENT AGENDA IS A SET OF REPORTS THAT COULD BE APPROVED IN ONE MOTION OF COUNCIL. THE APPROVALENDORSES ALL OF THE RECOMMENDATIONS CONTAINED IN EACH OF THE REPORTS WITHIN THE SET. THE SINGLE MOTION WILL SAVE TIME. PRIOR TO THE MOTION BEING TAKEN, A COUNCILLOR MAY REQUEST THAT ONE OR MORE OF THE REPORTS BE MOVED OUT OF THE CONSENT AGENDA TO BE CONSIDERED SEPARATELY. BDD- 2009 -04 - People Mover Update. It is recommended for the information of Council. ORDERED on the motion of Councillor Thomson, seconded by Councillor Fisher that the possibility of subsequent phases be recognized. Carried Unanimously F- 2009 -43 - Tax Receivables Monthly Report (July). It is recommended for the information of Council. F- 2009 -44 - Municipal Accounts. It is recommended that Council approve the municipal accounts totaling $33,592,369.43 for the period July 3, 2009 to August 12, 2009. MW- 2009 -59 - Mewburn Road Bridge Temporary Closure Status Report and Next Steps. It is recommended that the Town of Niagara -on- the -Lake, Region of Niagara and affected area residents be notified of the extension of the temporary closure of the Mewbum Road Bridge pending the completion of a Municipal Class Environmental Assessment (EA) of alternatives; and That Delcan Corporation be engaged to complete the EA in accordance with their attached proposal dated July 3, 2009 at an upset limit of $60,000 (plus GST and contingencies.) MW- 2009 -60 - Calaguiro Estates Subdivision Phase 2 Sidewalk Elimination. It is recommended that the requirement to construct interior sidewalks in the Calaguiro Estates Phase 2 Subdivision be deleted in exchange for equivalent cash payment to the City to construct a new sidewalk on Dorchester Road (between Calaguiro Drive and Fireman's Park.) MW- 2009 -62 - Lundy's Lane Historical Museum Quantity Surveyor Services Consultant Selection. It is recommended that the firm cm2r Incorporated be awarded the Quantity Surveying assignment for the construction of the Lundy's Lane Historical Museum. and that the Mayor and City Clerk be authorized to executive this agreement. MW- 2009 -63 - Ontario Power Generation Lands - Oakwood Drive - Temporary Access and Construction Licence Agreement Oakwood Place Shopping Centres Inc. It is recommended that the City enter into an agreement with Ontario Power Generation Inc. and Oakwood Place Shopping Centres Inc. for the construction and maintenance of an underground storm sewer and outfall into the Hydro Power Canal; and that the Mayor and City Clerk be authorized to execute the Licence Agreement. MW- 2009 -64 - Fernwood Subdivision, CN Rail Watermain Pipe Crossing Agreement Lundy's Lane ( Mile 26.41 Stamford Subdivision). It is recommended that the Mayor and City Clerk be authorized to sign and execute an agreement with Canadian National Railway Company for the right to construct, use and maintain a new 200mm diameter watermain on Lundy's Lane required for the Fernwood Plan of Subdivision. PD- 2009 -64 - SWC- 2009 -003, That's Amore Pizzeria, Sidewalk Cafe Licence Agreement with the City, 4572 Queen Street. It is recommended that the Mayor and the City Clerk be authorized to execute a Sidewalk Cafe Licence Agreement with Kanagasangary Tharmasangary & Suresh Balendra and Historic Niagara Development Inc. to permit the operation of a sidewalk cafe over a portion of the City sidewalk in front of That's Amore Pizzeria located at 4572 Queen Street. - 9 - February 22. 2010 Council Minutes 2. Ontario Provincial Police, Niagara Detachment - requesting Bridge Dedication for CN overpass at Sand Plant Hill in the name of Provincial Constable John Gregovski. RECOMMENDATION: For the Consideration of Council ORDERED on the motion of Councillor Kerrio, seconded by Councillor Maves that the request be approved. Carried Unanimously REPORTS RATIFICATION OF COMMUNITY SERVICES COMMITTEE MATTERS ORDERED on the motion of Councillor loannoni. seconded by Councillor Diodati that the actions taken in Community Services Committee. on February 22. 2010 be approved. Carried Unanimously 1) The minutes of the January 25, 2010 meeting be approved 2) REPORTS a) MW- 2010 -09 Glenholme Avenue Road Allowance That the above report be deferred b) PD- 2010 -02 Research into Enacting a By -law under Section 99.1 of the Municipal Act That Council not enact a by -law under Section 99.1 of the Municipal Act. c) PD- 2010 -15 Appeal of Committee of Adjustment Decision Consent Application B- 2009- 034,Ort Road /Reixinger Road Applicant: Joe Kekic (Agent -Brian Sinclair) 1. That staff withdraw the appeal of the Committee of Adjustment to the OMB regarding consent application B- 2009 -034. Ort Road /Reixinger Road. d) BDD- 2010 -01 People Mover Project Update For the information of Committee. e) PD- 2010 -11 Commercial Building & Facade Improvement Grant Application CB &FIG- 2009 -017 4519, 4521 and 4525 Queen Street Sal & Mary DiPietro and Carman & Anna Tartaglia 1. That the Commercial Building & Facade Improvement Grant Application for 4519, 4521 and 4525 Queen Street be approved subject to the owners satisfying all the program requirements including the requirements of City permits and entering into an agreement with the City 2. That the Mayor and Clerk be authorized to sign and execute the grant agreement_ f) F- 2010 -43 Water Sustainability Plan Report That Council approve the Water Report as submitted. g) F- 2010 -39 Water Billing Update -11- June28,2010 Council Minutes That Council approve the monthly billing of combined water /hydro accounts by Niagara Peninsula Energy Inc. effective August 2010. h) F- 2010 -40 2009 Reserves & Reserve Funds That the City Council receive this report on the 2009 activity in reserves and reserve funds I) PD- 2010 -52 Request by the Downtown BIA to Utilize Funds from the Downtown CIP Reserve That the request by the Downtown BIA be approved 4) NEW BUSINESS: That the petition presented by Mr. Zappitelli, regarding Riall Street, be referred to staff for a report. 5) R&C- 2010 -15 - Advertising Policy MW- 2010 -44 - Kalar Road Appraisal People Mover The report recommends that Council approve the Advertising Policy with the amendment that no political advertising be permitted. ORDERED on the motion of Councillor Thomson, seconded by Councillor Pietrangelo that the policy be approved with the issue of political advertising to be deferred. Carried Unanimously RATIFICATION OF IN CAMERA COMMITTEE RECOMMENDATIONS ORDERED on the motion of Councillor loannoni, seconded by Councillor Pietrangelo that the recommendation from the "In Camera" meeting on January 25. 2010 be approved That staff be authorized to proceed with the accusation of the necessary properties required to construct the road improvements for Kalar Road from Lundy's Lane to Beaverdams Road, as set out in the report. 2 That the Mayor and Clerk be authorized to execute any and all agreements and documents related to the People Mover. Carried Unanimously - 6 - August 9, 2010 Council Minutes f) TS- 2010 -37 Niagara Air Bus Vehicles That the report be deferred. g) TS- 2010 -38 Family & Children Services Charter Request That Council approve the request of FAC's for a grant equal to the cost of Charter Services. h) CAO- 2010 -06 Gale Centre Alarms That the report be received for the information of Council. I) CD- 2010 -07 Political Advertising That the Corporate Advertising Policy state the following regarding political advertising: The City will not allow advertising. either directly or through third party arrangements that promotes, or may be construed to promote, a political party or candidate, so as to avoid any impression that the City is supporting any particular party or candidate. 3) NEW BUSINESS: That a letter be sent to Toronto Blue Jay All Star John Buck inviting him to Niagara Falls. RATIFICATION OF IN CAMERA COMMITTEE RECOMMENDATIONS ORDERED on the motion of Councillor Diodati, seconded by Councillor Pietrangelo that the recommendations from the "In Camera" meeting on August 9, 2010 be approved. 1. BDD- 2010 -05 - People Mover Operations, Maintenance and Storage Facility Site Selection That Council reconfirm its Feb. 22n approval, approving the City -owned Salt Yard site on Stanley Avenue for the People Mover Operations, Maintenance, and Storage Facility (OMSF). 2. That staff investigate the opportunity to combine the People Mover and Niagara Falls Transit operations on the selected site, and report back to Council following the investigation. 2. HR- 2010 -07 - New Collective Agreement Between the City of Niagara Falls and the Amalgamated Transit Union, Local 1582 1. That Council ratify the amended Collective Agreement between The Corporation of the City of Niagara Falls and the Amalgamated Transit Union (ATU) and its Local 1582. with Councillors loannoni, Kerrio and Fisher opposed to # 1. Motion Carried -5- Children's Museum, the Niagara Youth Gallery and providing arts & culture services. Ms. Attenborough requested that Council consider moving the NF Art Gallery as a fee for Service. Ruthann Brown, representing Women's Place, asked Council to reconsider any grant cuts and stressed the extreme need for the funds. She provided clarification on their reserve funds. Brian Pellow, Project SHARE, indicated that the organization has received a 26% cut from the Region. He expressed the opinion that having reserves is more an indication that the organization follows sound financial principles. Motion made by Mayor Diodati to approve the City impact tax at 1.59, no seconder. Motion Failed. ORDERED on the motion of Councillor Thomson. seconded by Councillor Diodati to approve the proposed budget reductions. with Councillors Wing. loannoni and Morocco opposed. ORDERED on the motion of Councillor Gates. seconded by Councillor Maves for reconsideration to accept the blended increase to the tax rate of 1.59 %. 2. L- 2011 -07 Oswald House Fence Issue with Councillors Wing and loannoni opposed. ORDERED on the motion of Councillor Gates. seconded by Mayor Diodati that Council accept the blended increase to the tax rate of 1 59 %. with Councillors Kerrio, loannoni and Wing opposed_ RATIFICATION OF "IN CAMERA" RECOMMENDATIONS 1 BDD- 2011 -01 Reallocation of Falls Shuttle Operating Costs to the VTS Motion Carried Motion Carried Motion Carried ORDERED on the motion of Councillor Wing, seconded by Councillor Morocco that the recommendations from the "In Camera" meeting from March 21'. 2011 (Item #1) and April 4'. 2011(Item #2) meeting be approved. Carried Unanimously with Councillor Kerrio declaring a conflict to # 1 That Council approve the operating model between the BIA's and the NPC as outlined in the report and the reallocation of the Falls Shuttle net operating costs of $400,000 annually to the Visitor Transportation System (VTS) That, in the event council wishes to secure the cooperation of the Owners of 2922 St. Paul Avenue to assist in the restoration of the historic Oswald House fence, the Mayor and Clerk be authorized to execute the Agreement that has been signed by those Owners on or about March 21. 2011 * (8/23/2011) Dean Iorfida - VTS Agreement Page 1 From: To: CC: Date: Subject: Attachments: All: "Ed Lustig" <elustig @broderickpartners.com> <diorfida @niagarafalls.ca> <ktodd @niagarafalls.ca >, <sfelicetti @niagarafalls.ca >, <kbeaman @niagaraf... 8/23/2011 12:14 PM VTS Agreement VTS Agreement with Schedules A - D.pdf; Schedule E VTS Bus Lease.pdf; Sched ule F VTS Bus Storage Bay Licence.pdf; Schedule H Notice Details.pdf; Sched ule G Pymt Schedule of Annual Grants.pdf As you have requested in order to send out an agenda to the Members of Council today for this Thursday's special meeting, I have included the above noted Agreement in its current form. Please note, as I advised you earlier today: 1. The body of the VTS Agreement is in the form of my last draft of Friday together with all of the revisions requested by Lisa last night that are acceptable to the City; 2. The route schedules (Blue, Green and Red Line) are as per Serge's email last night but have not yet been approved by NPC; and 3. The Lease and Licence are in the form that I last received from Lisa on Sunday and approved yesterday subject to changes to incorporate Ken Beaman's comments re insurance provisions that have not yet been forwarded to me by Lisa. Regards Ed CITY OF NIAGARA FALLS By -law No. 2011 - A by -law to authorize the execution of an Agreement with the Niagara Parks Commission respecting a Visitor Transportation System (VTS). THE COUNCIL OF THE CORPORATION OF THE CITY OF NIAGARA FALLS ENACTS AS FOLLOWS: 1. An Agreement made between the Niagara Parks Commission (the "NPC ") and the Corporation of the City of Niagara Falls (the "CCNF "), respecting a visitor transportation system (the '`VTS "), as attached hereto, is hereby approved and authorized.. 2. The Mayor and Clerk are hereby authorized to execute the said Agreement. 3. The Clerk is hereby authorized to affix the corporate seal thereto and to deliver the said Agreement. Passed this twenty -fifth day of August, 2011. DEAN IORFIDA, CITY CLERK JAMES M. DIODATI. MAYOR First Reading: Second Reading: Third Reading: August 25, 2011. August 25, 2011. August 25, 2011. THIS AGREEMENT made and entered into 25th day of August, 2011. BETWEEN: THE CORPORATION OF THE CITY OF NIAGARA FALLS (the "CCNF "), RECITALS: - and - THE NIAGARA PARKS COMMISSION (the "NPC"). WHEREAS the CCNF operates a public bus transportation service within the City of Niagara Falls: AND WHEREAS the NPC operates a bus transportation service known as the People Mover, generally within the Park. for the purpose of transporting visitors to and from points of interest within the Park; AND WHEREAS the CCNF and the NPC wish to improve the level of bus transportation services within certain areas of the Park and in the City of Niagara Falls that (a) supports and encourages public and private investments in tourism, (b) relieves traffic congestion and creates convenient connections between tourist attractions in the City of Niagara Falls and in the Park, and (c) is operated in an efficient, safe, reliable and sustainable manner; AND WHEREAS the CCNF and the NPC intend to establish a visitor transportation system (VTS ") that results in people having improved convenient transportation to and from certain areas within the Park and the City of Niagara Falls by coordinating bus service operations among and between their respective Lines through integrated and coordinated practices in areas such as scheduling, traffic patterns, bus specifications, branding and operational terms, and by providing the opportunity for passengers to conveniently transfer between the Lines without additional payment; AND WHEREAS CCNF shall enter into an agreement (the "Contribution Agreements ") with each of the Government of Canada (the "Federal Government ") and the Government of the Province of Ontario (the "Ontario Government ") pursuant to which each such Government will provide the CCNF with Twenty -Five Million Dollars (525,000,000) (collectively, "Funding ") to fund the capital costs of the VTS, subject to certain terms; AND WHEREAS CCNF has agreed to use certain of the Funding to acquire twenty (20) clean diesel articulated sixty (60) foot buses and seven (7) clean diesel forty (40) foot buses (each a "VTS Bus ", and collectively, the "VTS Bus Fleet "), and each such bus will have installed on it intelligent transportation system hardware and software, and will be used for the operation of the VTS; AND WHEREAS NPC and CCNF intends to enter into an agreement on the date hereof pursuant to which CCNF agrees to lease to the NPC eleven (11) VTS Buses; AND WHEREAS CCNF intends to use certain of the Funding for the design, construction and completion of a VTS bus maintenance and storage facility to be located in the City of Niagara Falls; AND WHEREAS NPC wishes to license from CCNF bus storage space in such VTS bus maintenance and storage facility for the purpose of storing VTS Buses; AND WHEREAS the Council of the CCNF has resolved to participate with the NPC to develop. manage and operate the VTS: AND WHEREAS the Board of Commissioners of the NPC has resolved to participate with the CCNF to develop. manage and operate the VTS: NOW THEREFORE THIS AGREEMENT WITNESSES THAT in consideration of the mutual covenants and agreements hereinafter contained and other good and valuable consideration (the receipt and sufficiency of which are hereby acknowledged by each of the Parties hereto), the Parties agree as follows: 1.1 Definitions 1. INTERPRETATION In this Agreement, unless there is something in the subject matter that is inconsistent therewith. the following terms have the following meanings: "Agreement' means this agreement and all attached schedules, as the same may be supplemented, amended. restated or replaced from time to time: "Applicable Law" means (i) any domestic or foreign statute, law (including the common and civil law and equity), constitution. code, ordinance, rule, regulation, restriction, regulatory policy or guideline having the force of law, by -law (zoning or otherwise) or order. (ii) any consent, exemption, approval or licence of any Governmental Authority. and (iii) any policy, practice or guideline of, or contract with, any Governmental Authority which, although not actually having the force of law, is considered by such Governmental Authority as if having the force of law: "Arbitrator" has the meaning given to it in Section 15.6; "BIAs" means the Boards of Management of the Clifton Hill, Fallsview, Victoria Centre and Lundy's Lane Business Improvement Areas of the CCNF; - 3 "Blue Line" means the VTS bus service to be managed, operated and maintained by the CCNF within the CCNF and to and from certain areas within the Park along the route set out in Schedule B. including all necessary appurtenances related thereto, as same may be amended in accordance with the terms of this Agreement: "Business Day" means Monday through Friday except for any statutory or civic holidays observed in the City of Niagara Falls; "CCNF VTS Kiosk" has the meaning given to it in Section 4.1.2; "Contribution Agreements" has the meaning given to it in the fifth Recital to this Agreement: "Council" means the council of the CCNF; "Discounted VTS Ticket" means a VTS Ticket sold by NPC at a price of Two Dollars, Fifty Cents (52.50) in the First Year, and for every subsequent year of this Agreement, Two Dollars, Fifty Cents (52.50) plus an amount equal to two and one -half percent (2.5 %) of the previous year's price, and which ticket will bear thereon the words "No Cash Value" and "Not For Re -Sale" or similar words to that affect and be packaged with the sale of a product or service available in the City of Niagara Falls; "Dispute" has the meaning given to it in Section 15.1; "Federal Government" has the meaning given to it in the fifth Recital to this Agreement; "First Year" means the initial year of VTS operations beginning on or about the Operational Date: "GO VTS Kiosk" has the meaning given to it in Section 4.1.2; "Governmental Authority" means (i) any court, judicial body or arbitral body, (ii) any domestic or foreign government whether multinational, national, federal, provincial, territorial, state, municipal or local and any governmental agency, governmental authority, governmental tribunal or governmental commission of any kind whatever, (iii) any subdivision or authority of any of the foregoing, (iv) any quasi - governmental or private body exercising any regulatory, expropriation or taxing authority under or for the account of any of the above, (v) any supranational or regional body such as the World Trade Organization, and (vi) any stock exchange; "Green Line" means the VTS bus service to be managed, operated and maintained by the NPC within the Park along the route between Table Rock and the intersection of Victoria Road and River Road in the City of Niagara Falls as 4 set out in Schedule C, including all necessary appurtenances related thereto, as same may he amended in accordance with the terms of this Agreement; "including" means "including without limitation "; "ITS" has the meaning given to it in Section 6.1.1; "Lines" means collectively the Green Line, Blue Line and Red Line, and "Line" means any one of them; "Member of a BIA" means a corporation, a limited company, an unlimited liability company, a general partnership, a partnership, an association, an unincorporated organization or other entity that is a part of a BIA; "Negotiation Period" has the meaning given to it in Section 15.1; :Notice" has the meaning given to it in Section 16.6; "NPC Code of Conduct" has the meaning given to it in Section 14.1.1(g); "NPC Legislation" has the meaning given to it in Section 14.1.1(g): "NPC VTS Buses" has the meaning given to it in Section 5.1.2; "NPC VTS Kiosk" has the meaning given to it in Section 4.1.3: "Ontario Government" has the meaning given to it in the fifth Recital to this Agreement; "Operational Date" means the date when both Parties agree that all VTS Buses have been delivered to and accepted by the Parties and are put into operations as evidenced by the exchange of written correspondence between the Parties confirming same; "Park" has the meaning given to it in the Niagara Parks Act (Ontario); "Parties" means, collectively, each of the signatories to this Agreement, and "Party" means either of them; "Queen Street Services" means that part of the Blue Line operated by the CCNF that serves the Queen Street:Downtown area in the City of Niagara Falls shown on Schedule B: "Red Line" means the VTS bus service to be managed, operated and maintained by the CCNF within the CCNF and to and from certain areas within the Park along the route set out in Schedule D, including all necessary appurtenances related thereto, as same may he amended in accordance with the terms of this Agreement; 1.3 Construction 5 "Retail VTS Ticket" means any VTS Ticket sold at a price of Ten Dollars (S10.00) per ticket in the First Year and at the applicable New Retail Price per ticket in each subsequent year of the Term; "Suits" has the meaning given to it in Section 14.1.1(d); "Term" has the meaning given to it in Section 2.1.1; "Union VTS Kiosk" has the meaning given to it in Section 4.1.2; "VTS" means the visitor transportation system to be established hereunder by CCNF and the NPC that results in people having improved convenient transportation to and from certain areas within the Park and the City of Niagara Falls by coordinating bus service operations among and between their respective Lines through integrated and coordinated practices in areas such as scheduling, traffic patterns, bus specifications, branding and operational terms, and by providing the opportunity for passengers to conveniently transfer between the Lines without additional payment; "VTS Bus Fleet" has the meaning given to it in the sixth Recital to this Agreement: "VTS Bus Lease" has the meaning given to it in Section 5.1.2; "VTS Facility" has the meaning given to it in Section 7.1.1; "VTS Facility Licence" has the meaning given to it in Section 7.1.3; "VTS Feedback Committee" has the meaning given to it in Section 4.2.1; "VTS Kiosks" means collectively, the CCNF VTS Kiosks, the GO VTS Kiosk, the NPC VTS Kiosks and the Union VTS Kiosks, and "VTS Kiosk" means any one of them; and "VTS Ticket" has the meaning given to it in Section 12.1.1. 1.2 Binding Effect This Agreement shall be binding upon and shall enure to the benefit of the Parties and their respective successors and permitted assigns. Each obligation or agreement of CCNF or NPC expressed in this Agreement, even though not expressed as a covenant, is considered to be a covenant for all purposes. (a) The division of this Agreement into Articles and Sections and the insertion of headings are for convenience of reference only and do not affect the construction or interpretation of this Agreement. (h) - 6 - The terns "hereof', "herein ", "hereby ", "hereunder ", "hereto ", "hereinafter" and similar expressions refer to this Agreement and the Schedules and not to any particular Article, Section, Schedule or other portion hereof. Unless something in the subject matter or context is inconsistent therewith, references herein to Articles, Sections and Schedules are to articles and sections of and schedules to this Agreement. (c) The provisions of this Agreement shall be deemed severable, and the termination, invalidity or unenforceability of any one or more of the provisions hereof shall not affect the validity or enforceability of the other provisions hereof. (d) Words importing the singular number include the plural and vice versa, words importing any gender include all genders and words importing persons include individuals, corporations, limited and unlimited liability companies. general and limited partnerships, associations, trusts, unincorporated organizations, joint ventures and Governmental Authorities. (e) Accounting terms used in this Agreement and not otherwise defined herein shall have the meaning given to such terms, from time to time, in the Handbook of the Canadian Institute of Chartered Accountants. (f) Time is of the essence of this Agreement and of every part hereof. (g) No amendment to this Agreement will be valid or binding unless set forth in writing and duly executed by both of the Parties. (h) All references to currency herein are to lawful money of Canada. (i) Unless otherwise provided herein, each reference to an enactment is deemed to be a reference to that enactment, and to the regulations made under that enactment, as amended or re- enacted from time to time. Similarly, unless othenvise provided herein, each reference to an agreement is deemed to be a reference to that agreement, as it may be supplemented, amended or restated from time to time. (j) If any action is required to be taken pursuant to this Agreement on or by a specified date which is not a Business Day, then such action shall be valid if taken on or by the next succeeding Business Day. (k) The provisions of this Agreement shall not affect the rights of the Parties which may subsist from time to time to any other agreements between them dated concurrently with or subsequently to this Agreement nor relieve the Parties of any obligations they may have pursuant to such agreements. 1.4 Schedules The following attached schedules are attached to and form part of this Agreement: Schedule A VTS Facility Location Schedule B Schedule C Schedule D Schedule E Schedule F Schedule G Schedule H 1.5 Governing Jurisdiction and Attornment The Parties hereby agree that this Agreement and the provisions hereof shall be construed in accordance with the laws of the Province of Ontario and the laws of Canada and the Parties attorn to the jurisdiction of the Courts of the Province of Ontario. 1.6 Entire Agreement This Agreement constitutes the entire agreement and understanding by and between the Parties, except as herein otherwise expressly provided. There are no representations, warranties. promises, terms, conditions, undertakings or collateral agreements or understanding. written or oral. express or implied between the Parties pertaining to the subject matter hereof other than as expressly set forth in this Agreement. 2.1 Term of Agreement - 7 - Blue Line Green Line Red Line VTS Bus Lease VTS Bus Storage Bay Licence Payment Schedule of Annual Grants Notice Details 2. TERM 2.1.1 This Agreement shall become effective on the date hereof and shall remain in effect until the tenth (10th) anniversary of the Operational Date, unless earlier terminated as provided herein (the "Terns " "). 2.1./ Notwithstanding any other provision in this Agreement, if the Operational Date does not occur on or before the 30th day of March, 2013 (or such other date as the March 30, 2013 date is extended to under the Contribution Agreements). this Agreement shall become null and void and of no force and effect and. neither Party shall bear any responsibility to the other Party for anything arising out of or relative to this Agreement, except as follows: (a) VTS Bus orders and deliveries, VTS Kiosks orders, deliveries and installations, and CCNF run VTS facility building project contemplated by and funded through this Agreement and the Contribution Agreements shall be the sole responsibility of the CCNF, and the CCNF shall not look to the NPC for indemnity for such orders, deliveries, installations or building projects. (b) Upgrades to the NPC People Mover stations and NPC infrastructure improvements contemplated by and funded through this Agreement and the Contribution Agreements shall be the sole responsibility of the NPC, and the NPC shall not look to the CCNF for indemnity for such upgrades and infrastructure improvements, except to the extent that the Federal Government and/or the Ontario Government reimburses moneys to the CCNF for any such upgrades or - 8 infrastructure improvements under the Contribution Agreements and such reimbursed moneys have not, in turn, been paid over to the NPC. 2.1.3 On or before the date that is one (1) calendar year prior to the ninth (9 anniversary year of Operational Date, each Party shall provide the other Party with written notice of its desire to either extend this Agreement or to take no action to extend this Agreement. Any extension of this Agreement must be extended by the mutual consent of both Parties and upon such terms and conditions as may be agreed to by the Parties. 2.2 Termination 2.2.1 Either Party shall have the right to terminate this Agreement immediately, in the event of the other Party's bankruptcy or insolvency, or any initiation, voluntary or involuntary, of bankruptcy or insolvency of such other Party. Except as set out in this Section 2, the Parties shall not terminate this Agreement. 2.2.2 For greater certainty, (a) a termination of this Agreement pursuant to this Section 2 shall not result in a termination of either of the Lease or the Licence; and (b) a termination of the VTS Bus Lease in accordance with its terms shall not result in a termination of this Agreement; and (c) a termination of the VTS Facility Licence in accordance with its teens shall not result in a termination of this Agreement. 3. FEDERAL AND PROVINCIAL CONTRIBUTION AGREEMENTS 3.1 Covenants 3.1.1 The CCNF will provide the NPC with true and complete copies of the fully executed and delivered Contribution Agreements forthwith upon the CCNF's receipt of them. 3.1.2 If the terms of the Contribution Agreements contradict or conflict with the terms of this Agreement, or the terns of the Contribution Agreements would cause a Party to be unable to fulfill its obligations or covenants in this Agreement, the Parties will use commercially reasonable efforts to reach an agreement on amendments to this Agreement to address such contradicting or conflicting terns. 3.1.3 The CCNF will provide true and complete disclosure of this Agreement and its terms and the corresponding required reports to the Federal Government and the Ontario Government under the terms of the Contribution Agreements. The CCNF shall satisfy all other terms and conditions of the Contribution Agreements. - 9 - 4. VISITOR TRANSPORTATION SYSTEM 4.1 VTS Responsibilities 4.1 1 The Parties acknowledge and agree that the routes of the Lines, including the stops for passenger pick -up and disembarkment, have been set based on the Parties' understanding of traffic flow and passenger needs, so as to generate the most in ridership. 4.1 Subject to the terms hereof, the CCNF will be responsible for the management of and for the payment of all operating and maintenance costs to service and operate the Blue Line and Red Line, the five (5) VTS Ticket kiosks located in the City of Niagara Falls along the Blue Line and the Red Line (collectively, the "CCNF VTS Kiosks "), the VTS Ticket kiosk located in or at Union Station in Toronto (the "Union VTS Kiosk "), and the VTS Ticket kiosk located in or at the Via Rail GO station in the City of Niagara Falls (the "GO VTS Kiosk "). 4.1.3 Subject to the terms hereof, the NPC will be responsible for the management of and for the payment of all operating and maintenance costs to service and operate the Green Line and the four (4) VTS Ticket kiosks located in the Park (collectively. the "NPC VTS Kiosks "). 4.1.4 The upgrade of the NPC People Mover stations in the Park will be undertaken by the NPC through the funds NPC will receive from the capital allocation therefor referred to in Section 10.1.1(b). The maintenance and operation of these stations including all costs shall be the sole responsibility of the NPC. 4.1.5 Subject to the terms hereof, the CCNF and the NPC will be responsible for their own employees and providing the necessary resources to meet their respective commitments as outlined in this Agreement. 4.1.6 Each of the CCNF and the NPC will each appoint a VTS Operations Manager who will work together with each other in support of VTS operations and needs. The VTS Operations Managers shall be in charge of each of the Parties" respective operations of the VTS and shall be the persons who will serve as each Party's designated representative to work together with the other Party on the day -to -day operations of the VTS. 4.1.7 The CCNF and the NPC will work together to produce annual VTS operating budgets, which will include information for staffing, capital expenditures and major operational changes that may affect the overall operation of the VTS. 4.1.8 The CCNF and the NPC will work together to develop commercially reasonable common branding for the VTS, VTS Bus Fleet, VTS Kiosks, VTS Tickets and VTS bus stops. Once agreed to, modifications to such branding shall not be made without the agreement of both Parties. The Parties shall agree that the costs of developing such branding will be covered by the CCNF's capital allocation of the VTS capital program under the Contribution Agreements and the costs of painting and decaling the NPC VTS Buses will be the responsibility of the NPC and the costs of painting and decaling all other VTS Buses and the VTS Kiosks will be the responsibility of the CCNF. In the event that the costs of developing such branding are not covered by the CCNF's capital allocation of the VTS Capital Program under the Contribution - 10- Agreements. to the extent such costs are not covered. such costs shall he shared equally by the CCNF and the NPC. 4.2 VTS Feedback Committee 4.2.1 The CCNF and the NPC will establish a committee (the "VTS Feedback Committee ") for the purpose of providing the Parties and the BIAs with a forum for comments, feedback discussions and recommendations with respect to the operations and performance of the VTS. For greater certainty. the members of the VTS Feedback Committee shall not be entitled to any reports or proprietary VTS information and will have no decision making authority but may make recommendations to the CCNF and NPC on the matters brought before it. Nothing in this section will prevent the CCNF from providing to the BIAs any reports it has concerning the Blue Line and the Red Line. 4. The VTS Feedback Committee will be comprised of two (2) representatives from each of (i) the NPC. (ii) the CCNF and (iii) each of the BIAs. One of the representatives of the NPC shall serve as the chairperson of the VTS Feedback Committee. 4.2.3 The VTS Feedback Committee will meet once during the First Year and no less than twice a year thereafter. The meeting dates for all such meetings will be set by the chairperson of the VTS Feedback Committee. 5.1 VTS Buses 6.1 ITS System 5. VTS BUSES 5.1.1 The CCNF shall purchase and own the VTS Buses, and each such bus will have installed in it all required ITS equipment and software during the Term within the time limitations and upon the terms peiniitted in order to obtain full reimbursement of all the acquisition costs for the VTS Buses under the Contribution Agreements. 5.1 .2 On the date hereof, the CCNF, as lessor, and the NPC, as lessee, will enter into a vehicle lease agreement in the form of the vehicle lease attached hereto as Schedule E (the "VTS Bus Lease ") pursuant to which the CCNF shall, inter alia, lease to NPC nine (9) clean diesel articulated sixty foot (60') buses and two (2) clean diesel standard forty foot (40') buses (the "NPC VTS Buses ") (which buses will have the vehicle specifications set out in such vehicle lease) out of the VTS Bus Fleet. 5.1.3 It is acknowledged and agreed that from time to time VTS buses may be borrowed between the NPC and the CCNF on such terms and conditions as mutually agreed. 6. ITS SYSTEM 6.1.1 The CCNF shall purchase, own and operate all software and hardware for an intelligent transportation system ( "ITS ") to facilitate the operations of the VTS during the Term within the time limitations and upon the terms permitted in order to obtain full reimbursement of all the acquisition costs for the ITS under the Contribution Agreements 6.1.2 The CCNF shall use commercially reasonable efforts to ensure that the ITS programming assists the NPC in its VTS operations. 6.1.3 The CCNF will consult with NPC and take into consideration NPC's requests and suggestions as to the substance and form of the ITS reports to be developed during the implementation of the ITS. 6.1 .4 The CCNF will provide ITS operations reports to the NPC of the same nature of the ITS reports the CCNF will obtain and utilize during the Term at no charge to NPC. The CCNF will make all necessary and appropriate efforts to safeguard all ITS data, operations reports. analyses. compilations, memoranda, notes and any other writings (including, without limitation. any such material in written form. magnetically encoded or any other form of media) and other ITS information relating to or pertaining to the NPC and, or the Green Line (the "NPC ITS Confidential Information ") from disclosure to anyone person other than the NPC and the CCNF shall not disclose any NPC ITS Confidential Information to any person other than the NPC without: (a) the prior written approval of the NPC, or (b) pursuant to any judicial or governmental requirement or order, provided that if the CCNF becomes legally compelled to disclose any of the NPC ITS Confidential Information, the undersigned shall provide the NPC with prompt prior written notice of same so that the NPC may seek a protective order or other appropriate remedy or waive compliance with these terms. The NPC shall be the sole owner of the NPC ITS Confidential Information. 6.1.5 After the expiration of the Term or other earlier termination of the Agreement. the NPC will have the option to retain, and the CCNF shall provide, the services of the CCNF to operate the ITS and produce the ITS reports and other products for the NPC VTS Buses as the NPC has received over the one year period prior to such expiration or termination at a cost of One Dollar (S1 .00) per year plus the NPC's pro rata portion of the costs of the CCNF to operate the ITS and produce such ITS reports and other products during the period of the NPC's actual use of such services of the CCNF. Should the NPC exercise such option to retain the services of the CCNF. the CCNF will provide NPC with a non - disclosure covenant in the form set out in Section 6.1 .4 pursuant to which the CCNF will not disclose, inter alia, any data contained in any of the ITS reports relating to or pertaining to the NPC and`or the NPC bus route that replaces the Green Line. The NPC shall be the sole owner of such reports and data relating to or pertaining to the NPC and:or the NPC bus route that replaces the Green Line. 7. VTS FACILITY 7.1 .1 The CCNF shall design, construct. own and operate a VTS bus maintenance and storage facility to be located on CCNF owned property located on Stanley Avenue in the City of Niagara Falls as shown on Schedule A ( "VTS Facility "); during the Term within the time limitations and upon the terms permitted in order to obtain full reimbursement of all the acquisition costs for the VTS Facility under the Contribution Agreements. 7.1.2 During the Term, so long as the VTS Facility Licence is in effect, the CCNF will not maintain or store non -VTS buses in the VTS Facility unless the NPC is then entitled to licence enough bus storage bays for the NPC to store all of the NPC VTS Buses under the VTS Facility Licence. 7.1.3 On the date hereof, the CCNF, as licensor, and the NPC, as licensee. will enter into a VTS bus storage bay licence in the form of the bus storage bay licence (the " NTS Facility Licence') attached hereto as Schedule F pursuant to which the CCNF shall, inter alia, licence to the NPC, subject to certain restrictions set out therein, the lesser of: (a) eight (8) bus storage bays located in the VTS Facility: and (h) the NPC's pro rata share of the aggregate number of bus storage bays located in the VTS Facility. (For the purposes of this Section, "pro rata share" means the ratio of the aggregate number of NPC VTS Buses to the aggregate number of VTS Buses.) 7.1.4 Provided that the capital funding supplied by the Federal Government and the Ontario Government under the Contribution Agreements is sufficient to do so, the CCNF will use its best efforts to ensure that the VTS Facility is sufficiently large to store all of the NPC VTS Buses. 7.1.5 The CCNF will use its best efforts to design, construct and complete the VTS Facility and have the VTS Facility operational during the 2013 calendar year. 8. ROLES AND RESPONSIBILITIES 8.1 Roles and Responsibilities of the CCNF 8.1.1 The CCNF shall permit any holder of a valid VTS Ticket to ride the Blue Line and Red Line for two (2) consecutive days. 8.1.2 The CCNF will provide access and right of way to enable the NPC VTS Buses to travel within the CCNF for the purpose of driving to and from the VTS Facility. 8.1.3 The CCNF, including VTS staff, will comply with the rules and protocols of operating within the Park as described in the NPC Code of Conduct. 8.1.4 The CCNF will cause each of its current and future directors, officers, employees and members to adhere to the NPC Legislation and any written directives from NPC to ensure compliance with NPC Legislation and hereby assumes all responsibility for any failure to comply with the terms of this Section. 8.1.5 The CCNF agrees to adhere to the principles and all provisions of the NPC Code of Conduct applicable to the CCNF. The CCNF will cause each of its current and future - 13 - directors, officers, employees and members to read and adhere to the NPC Code of Conduct and hereby assumes all responsibility for any failure to comply with the terms of the NPC Code of Conduct on the part of the CCNF and such persons. 8.2 Role and Responsibilities of the NPC 8.2.1 Subject to Section 8.2.4, the NPC shall taant to the CCNF in the First Year the sum of One Million Dollars (51,000,000.00) to aid in the general operation and maintenance of the Red Line and the Blue Line, and for every subsequent year of this Agreement, One Million Dollars ($1,000,000.00) plus an amount equal to two and one half percent (2.5 %) of the previous year grant payment (each an "Annual Grant"). The payment of the Annual Grants shall be in accordance with the payment schedule set out in Schedule G. 8.2.2 The NPC shall permit any holder of a valid VTS Ticket to ride the Green Line for two (2) consecutive days. 8.2.3 Subject to the terms of this Agreement, the NPC will provide the CCNF with access to the Park to operate the CCNF VTS Buses within the approved areas of the Park in order to facilitate the operation of the Blue Line and the Red Line. The sole passenger pick -up and disembarkment point within the Park for the Blue Line and the Red Line shall be limited to NPC's Table Rock. 8.2.4 In each year following the Operational Date, the CCNF shall produce in April and October a schedule setting out the days of operation of the Blue Line and the Red Line (the "Schedule "). The Schedule may. from time to time, be amended by the CCNF, acting in a commercially reasonable manner. In the event that, in any year, the Blue Line and the Red Line are not in operation. in any manner, for three (3) consecutive days of operation. as shown on the then current Schedule. the NPC shall be entitled to a reduction in the amount of the then current Annual Grant equal to the number of days that the Blue Line and the Red Line are not in operation, in any manner, multiplied by the amount of the then current Annual Grant for that year divided by 365. The said reduction shall be made each year on a quarterly basis at the end of March, June, September and December for the preceding quarter year. 9.1 Traffic Itlatters 9. TRAFFIC MATTERS 9.1.1 The NPC and the CCNF acknowledge and agree that the CCNF has the authority to direct access and traffic flow within the City of Niagara Falls subject to Applicable Laws. 9.1.2 The NPC and the CCNF acknowledge and agree that under the :Niagara Parks .4ct (Ontario) the NPC is the sole authority for traffic within the Park. is the sole authority for the Green Line and has the authority to direct access and traffic flow within the Park subject to Applicable Laws. 9.1.3 The NPC and the CCNF acknowledge and agree that under the Municipal Act (Ontario) the CCNF is the municipal authority for traffic on the streets in the City of Niagara Falls, is the sole authority for any changes to the Blue Line andror the Red Line within the City 9.2 Audit of VTS - 14- of Niagara Falls. is, subject to Section 14.1.1 (f). the sole authority for any changes to the Blue Line and or the Red Line within the Park, and has the authority to direct access and traffic Clow on the streets in the City of Niagara Falls subject to Applicable Laws. 9.1.4 Notwithstanding Sections 9.1.2 and 9.1.3, (a) each of the Parties agree to consult with each other and to take into consideration the opinions of the other Party before making any changes to the routes under their sole authority. as referred to in the aforesaid Sections, and to the embarkation and disembarkation points on such routes and (b) Changes may be made to the Blue Line or Red Line in the routes in the Park and passenger pick -ups and disembarkment points in the Park only with the NPC's prior approval. 9.2.1 After the first (1 ") anniversary of the Operational Date but prior to the fifth (5 anniversary of the Operational Date, the Parties will jointly conduct an audit of the VTS operations, finances, capital expenditures. operating and capital budgets, responsibilities of the Parties, passenger safety and traffic flow impacting the Lines. The Parties will mutually agree upon the time period for when to commence the audit. The costs of such audit will be shared equally between the Parties. 9.2,2 Prior to the commencement of such audit, the Parties will use commercially reasonable efforts to establish terms of reference for such audit, including timelines, scope, budget and method and type of audit report. 9 2.3 If mutually agreed. the Parties may retain third party consultants, including an independent traffic consultant. should there be concerns about visitor safety and/or traftic Clow, to undertake such audit or any part thereof. 9.2.4 Each Party will be given thirty (30) Business Days to review and assess all audit reports, including the recommendations set out in such reports for changes or improvements to the VTS. Following such thirty (30) Business Day period. the Parties will meet to discuss their positions on the reports and their recommendations. If the Parties mutually agree, as a result of their review and assessment of the audit reports and recommendations, that this Agreement requires amendments, the Parties, together with their advisors, will use commercially reasonable efforts to reach an agreement on amendments to this Agreement. 9 Notwithstanding the foregoing in this Section 9.2, should there be any concerns about visitor safety and /or traffic flow. (a) the parties will retain an independent traffic consultant to undertake a review of the traffic flow and/or visitor safety of the routes; and (b) the CCNF retains the sole authority for any changes to the routes and passenger pick -ups and disembarkment points of the Blue Line and or the Red Line in the City of Niagara Falls: and (c) the NPC retains the sole authority for any changes to the routes and passenger pick -ups and disembarkment points for each of the Lines in the Park; and (d) each of the Parties agree to consult with each other and to take into consideration the opinions of the other Party before making any changes to any of the routes and the embarkation and disembarkation points on such routes. 10.1 NPC Capital Program Allocations 10.1.1 The CCNF and the NPC have prepared a capital program necessary to develop and implement the VTS and the amount that will be allocated to NPC's portion of the VTS capital program is Fourteen Million, Fifty -Seven Thousand, Five Hundred and Six Dollars (S14,057.506) (the "NPC Allocated Capital "). The Parties agree that the NPC Allocated Capital \vi11 be paid as follows: (a) the CCNF will pay out, and seek reimbursement from the Federal Government and the Ontario Government under the Contribution Agreements, 58,122.025 for the NPC VTS Buses and the NPC VTS Kiosks to be allocated as follows: (1 (ii) NPC VTS Kiosks 5260.000; and (b) the NPC will pay out, and the CCNF will seek reimbursement from the Federal Government and the Ontario Government under the Contribution Agreements, 55,935,481 for upgrades to the NPC People Mover stations and NPC infrastructure improvements ( "NPC Paid Capital ") to be allocated as follows: ( 1 ) - 15- 10. CAPITAL COST ARRANGEMENTS NPC VTS Buses 57,862,025: and upgrades to the NPC People Mover stations - S100,000; and (ii) NPC infrastructure improvements 55.835,481. 10.1.2 The NPC acknowledges and agrees that the capital costs of the VTS are being funded by monies received by the CCNF from the Federal Government and the Ontario Government under the Contribution Agreements and that the CCNF has no other resources with which to pay for the capital costs of the VTS. The CCNF will not execute the Contribution Agreements unless the NPC Allocated Capital is acceptable to the Federal Government and the Ontario Government under the Contribution Agreements. 10.1.3 Should either Party elect to expand, upgrade, or modify any capital purchase of the type, quantity or models of any of the VTS Buses, then the cost of such expansion, upgrade, 10.3 Reduction in Funding - 16 - or modification shall be borne entirely by the Party requesting the expansion, upgrade, or modification. 10.1.4 Notwithstanding how the amounts are allocated to specific items within the VTS capital program budget, it is agreed that the NPC will be entitled to the aggregate reimbursement amounts received by the CCNF for items set out in NPC's portion of the VTS capital program as described in Section 10.1.1 up to the full amount of the NPC Allocated Capital. For greater certainty. subject to the required consent of the Federal Government and the Ontario Government, the NPC shall have the right to reallocate the NPC Allocated Capital among the capital expenditure items set out in NPC's portion of the VTS capital program as described in Section 10.1.1. If requested to do so by the NPC, the CCNF agrees to use commercially reasonable efforts to obtain such consent of the Federal Government and the Ontario Government to a reallocation of the NPC Allocated Capital among the capital expenditure items set out in NPC's portion of the VTS capital program as described in Section 10.1.1. The CCNF will not seek. and will ensure that the Contribution Agreements do not call for, any contributions or dollars from NPC for the initial capital costs to set up the VTS above the NPC Allocated Capital. 10.2 Procedures for Reimbursement of NPC Paid Capital 10.2.1 The CCNF and NPC agree that within seven (7) Business Days of the CCNF's receipt of invoices or receipts for NPC's payment of any portion of the NPC Paid Capital, the CCNF will: (a) submit such invoices or receipts together with all necessary reports to the Federal Government and the Ontario Government for reimbursement in accordance with the Contribution Agreements; (b) diligently follow -up with each of the Federal Government and the Ontario Government for reimbursement for the sums evidenced by invoices or receipts at least once a month; and (c) within seven (7) Business Days of the CCNF's receipt of such reimbursement moneys from the Federal Government and the Ontario Government, the CCNF will pay over such moneys to NPC by cheque, money order or wire transfer. 10.3.1 The Parties acknowledge that the Contribution Agreements may contain a clause that entitles the Federal Government or the Ontario Government to reduce or terminate any payment under the Contribution Agreements in certain circumstances. Should any such reduction or termination occur, the Parties agree: (a) in the event that such reduction or termination is in respect to a particular capital expenditure. the Party who is responsible for such capital expenditure will bear such reduction or termination; 11.1 Sales Taxes - 17- (b) in the event that such reduction or termination is in respect of the VTS capital program as a whole, the Parties will share in the responsibility for such reduction or termination on a pro rata basis. 11. SALES TAXES All amounts stated or described in this Agreement, including amounts of costs, consideration and revenues, are exclusive of all sales, use, value -added or similar taxes (collectively, "Sales Taxes "). The Parties agree that they will cooperate to collect, remit, refund, credit, report and pay all applicable Sales Taxes where required by, and in accordance with, the applicable legislation and regulations made hereunder. 12. VTS TICKETS 12.1 Sales of VTS Tickets and Allocation of Revenues 12.1.1 The Parties shall jointly procure and equally pay for the production of passenger tickets for the VTS (the "VTS Tickets "). 12.1.2 The VTS Tickets shall be of a quality, design and brand that is mutually agreed upon by the Parties. 12.1.5 Every VTS Ticket issued by the Parties shall entitle a passenger who holds such VTS Ticket to ride any VTS Bus and to transfer between the Lines without additional cost tier two (2) consecutive days. The VTS Tickets will include a means of identifying two (2) consecutive days of validity. 12.1.4 Retail VTS Tickets will be sold by the NPC to passengers including at each of NPC VTS Kiosks, on board the NPC VTS Buses and at NPC retail locations. 12.1.5 the NPC. All revenues from the sale of Retail VTS Tickets sold by the NPC shall belong to 12.1.6 Discounted VTS Tickets shall be offered for sale by the NPC to a Member of a BIA and to any of the BIAs who agree with the NPC: (a) to pay the price per ticket of Two Dollars, Fifty Cents ($2.50) in the First Year, and for every subsequent year of this Agreement, Two Dollars, Fifty Cents ($2.50) plus an amount equal to two and one -half percent (2.5 %) of the previous year's price; and (b) not re -sell any such ticket it to any person; and (c) to package any such ticket with the sale of a product or service available in the City of Niagara Falls of a value of not less than Forty Dollars ($40.00). For greater certainty, the CCNF may not give away a Retail VTS Ticket for no consideration or sell a Retail VTS Ticket at less than the applicable purchase price, such applicable purchase price being Ten Dollars (510.00) during the First Year and the applicable New Retail Price in any subsequent year. 12.1.7 Subject to the terms of this Agreement, NPC shall be entitled to all revenues from the sale of Discounted VTS Tickets to a Member of a BIA and to any of the BIAS. 12.1.8 Retail VTS Tickets may only be sold by the CCNF to passengers at: (a) each of the CCNF VTS Kiosks; and (b) on board CCNF VTS Buses on the Blue Line and Red Line; and (c) at the GO VTS Kiosk; and (d) at the Union VTS Kiosk; and (e) at any other location mutually agreed to by the NPC and the CCNF. 12.1.9 The price of each Retail VTS Ticket sold by the CCNF or the NPC shall be Ten (S 10.00) Dollars during the First Year. On or before sixty (60) days of the end of the First Year and every year thereafter during the Term, the Parties shall together decide on the sale price of the Retail VTS tickets for the next year (each a New Retail Price ") and shall sell each Retail VTS Ticket in such next year at the applicable New Retail Price. 12.1.10 All revenues from the sale of the Retail VTS Tickets pursuant to Sections 12.1.8(a), (b) and (e) shall be allocated as follows in the First Year and each subsequent year of the Term: (a) until such time in such First Year or subsequent year, as the case may be, as the revenues from the sale of: (1) - 18- Retail VTS Tickets pursuant to Sections 12.1.8(a), (b) and (e), (ii) Retail VTS Tickets at NPC VTS Kiosks. and (iii) all Discounted VTS Tickets sold to any Member of a BI.A and to any of the BIAS, less the amount of the applicable operating and maintenance costs of the CCNF VTS Kiosks for such First Year or subsequent year equals, the amount of the then applicable Annual Grant, one hundred percent (100 %) to the NPC; and (b) thereafter. fifty percent (50 %) to each of the CCNF and the NPC. 12.1.11 The NPC and the CCNF will share equally the revenues from the sale of the Retail VTS Tickets at the Union VTS Kiosk, after first deducting all operating and maintenance costs for the Union VTS Kiosk from such revenues. - 19- 12.1.12 The NPC and the CCNF will share equally the revenues from the sale of Retail VTS Tickets from the GO VTS Kiosk, after first deducting all operating costs incurred by the CCNF to operate a Queen Street Service with CCNF VTS Buses (exclusive of the Queen Street Service operating costs for that portion of the Blue Line located west of Chrysler Avenue and extending to Great Wolf Lodge along Victoria Avenue in the City of Niagara Falls) and all operating and maintenance costs for the GO VTS Kiosk from such revenues. 12.1.13 The CCNF shall provide the NPC with audited annual statements of all VTS Ticket revenues received for such year and with audited annual statements of the operating and maintenance costs for the CCNF VTS Kiosks, the Union VTS Kiosk. the GO VTS Kiosk and the Queen Street Service incurred and expensed for such year. The CCNF will also provide the NPC with quarterly cash flows reconciliation for all moneys collected by the CCNF from the VTS Tickets and expenses for its VTS operations. 12.1.14 The NPC shall provide the CCNF with audited annual statements of VTS Ticket revenues received for such year from the NPC VTS Kiosks and the Discounted VTS Tickets sold to a Member of a BIA or to any of the BIAs for such year. 12.1.15 For the purposes of Sections 12,1.10 to 12.1.13, "operating and maintenance costs" shall not include the capital acquisition costs of the applicable VTS Kiosks, replacement costs due to the negligence or other actions or omissions, or other like costs but rather means the day -to -day operational expenses and maintenance costs for normal wear and tear. Provided that for the CCNF VTS Kiosks, the GO VTS Kiosk and the Union VTS Kiosk, if insurance for such Kiosks is included in the CCNF's blanket insurance policy, no payment or allocation for insurance will be included in the calculation of the operating and maintenance costs for these Kiosks: and if any specific or special premium is levied for these Kiosks that is directly attributable to such Kiosks, the cost of any such specific or special premium will be included in the calculation of the operating and maintenance costs on these Kiosks. 13.1 Indemnity by the CCNF 13. INDEMNIFICATION The CCNF will, from time to time and at times hereafter, save, defend, and keep harmless and fully indemnify the NPC and each of its commissioners, officers,_ directors, employees and agents (herein called the "NPC Indemnitees") from and against all manner of actions, proceedings, suits, claims, losses, costs, damages, executions and demands, whatsoever suffered or incurred by any of the NPC Indemnitees in any manner based upon, arising out of, related to, occasioned by or attributable to: (a) a default or breach by the CCNF of its obligations hereunder; or (b) by reason of any fraud, negligence or wilful default of the CCNF. its councilors, officers. employees, agents or persons for whom it is responsible in law in connection with the performance of the Agreement or the CCNF's obligations hereunder, except to the extent that the same are caused by the NPC or persons for whom the NPC is responsible by law. 13.2 Indemnity by the NPC - 20 - The NPC will. from time to time and at times hereafter, save, defend and keep harmless and fully indemnify the CCNF and each of its councilors, officers, directors, employees and agents (herein called the "CCNF Indemnitees ") from and against all manner of actions, proceedings, suits. claims, losses, costs, damages, executions and demands, whatsoever suffered or incurred by any of the CCNF Indemnitees in any manner based upon, arising out of, related to, occasioned by or attributed to: (a) a default or breach by the NPC of its obligations hereunder: or (b) by reason of any fraud, negligence or wilful default of the NPC. its officers, commissioners, employees, agents, or persons for whom it is responsible in law in connection with the performance of the Agreement or the NPC's obligations hereunder, except to the extent that the same are caused by the CCNF or persons for Thorn the CCNF is responsible by law. 13.3 Additional Indemnity In addition to the general indemnity clauses in the Agreement. the Parties agree as follows: VTS Bus orders and VTS Bus delivery and CCNF run building projects (including the VTS Facility and VTS Kiosks) contemplated b■' and funded through this Agreement and the Contribution Agreements shall be the sole responsibility of the CCNF, and the CCNF shall not look to the NPC for indemnity for such orders, delivery and building projects. 13.4 Notwithstanding the foregoing in this Article 13, the Parties acknowledge that their indemnification obligations hereunder are subject to Applicable Laws including the limitation placed on the Parties' ability to grant an indemnity under the Financial Administration Act (Ontario). 14. REPRESENTATIONS AND WARRANTIES 14.1 Representations and Warranties of the CCNF 14. L 1 The CCNF makes the following representations and warranties to the NPC and acknowledges that the NPC is relying upon such representations and warranties: (a) It has taken all necessary action to authorize the execution. delivery and performance of this A and to observe and perform the provisions hereof in accordance with the terms of this Agreement; (b) This Agreement constitutes a valid and legally binding obligations of the CCNF enforceable against it in accordance with its terms, subject only to applicable bankruptcy, insolvency and other similar laws affecting the enforceability of the rights of creditors generally, the general principles of equity and that equitable remedies, such as specific performance and injunction, are available only in the discretion of a court; (c) None of the authorization, execution and delivery of this Agreement, no compliance with or performance of the terms and conditions of this Agreement: (i) Has resulted or will result in the violation of the constating documents or by -laws of the CCNF, or any resolutions passed by the CCNF, or a breach or violation of any Applicable Laws; or (ii) Has resulted or will, with the passage of time or giving of notice, or both, or otherwise. result in a breach of, or constitute a default under, any agreement, undertaking or instrument to which the CCNF is a party or by which it or its property or assets is bound; (d) Except as disclosed to the NPC in writing, there is no suit, action, dispute, civil or criminal litigation, claim. arbitration or legal, administrative or other proceeding or governmental investigation, including appeals and applications for review (collectively, "Suits ") pending or to the best of its knowledge, information and belief. after due enquiry, threatened against it or relating to this Agreement which would have a material and adverse effect on its ability to carry out its obligations hereunder; and (e) To the best of its knowledge, information and belief, after due enquiry, there are no facts known to it which are likely to give rise to any such Suits which would have a material and adverse effect or its ability to carry out its obligations hereunder, except as disclosed to the NPC in writing. (t) The CCNF acknowledges that the NPC is a Provincial Crown Agency and a corporation incorporated by an Act of the Provincial Legislature of Ontario on the 23rd of April 1887 and continued under the Niagara Parks :lct, R.S.O. 1990, Chapter N.3. The CCNF has read and is familiar with such Act and the statutory jurisdiction of the NPC to control activities in the Park through such Act and R.R.O. 1990, Regulation 829 (collectively, "NPC Legislation "), including the conduct of persons using the Park, permissions, advertising and signage, licences. traffic rules and the control of transportation in the Park. The CCNF has read and is familiar with the NPC's code of conduct Located at www.niagaraparks.com./files/Code-of-Conduct.pdf (the "NPC Code of Conduct "). ( g) -21 - 14.2 Representations and Warranties of the NPC 142.1 The NPC makes the following representations and warranties to the CCNF and acknowledges that the CCNF is relying upon such representations and warranties: (a) It has taken all necessary action to authorize the execution. delivery and performance of this :Agreement and to observe and perform the provisions hereof in accordance with the terms of this Agreement; -22- (b) This Agreement constitutes a valid and legally binding obligation of the NPC enforceable against it in accordance with its terms. subject only to applicable bankruptcy, insolvency and other similar laws affecting the enforceability of the rights of creditors generally, the general principles of equity and that equitable remedies, such as specific performance and injunction, are available only in the discretion of a court: (c) None of the authorization, execution and delivery of this Agreement, no compliance with or performance of the terms and conditions of this Agreement: (i) Has resulted or will result in the violation of the constating documents or by -laws of the NPC, or any resolutions passed by the NPC, or a breach or violation of any Applicable Laws: or (ii) Has resulted or will, with the passage of time or giving of notice. or both, or otherwise. result in a breach of, or constitute a default under, any agreement, undertaking or instrument to which the NPC is a party or by which it or its property or assets is bound: (d) Except as disclosed to the NPC in writing. there is no Suit pending or to the best of its knowledge, information and belief, after due enquiry, threatened against it or relating to this Agreement which would have a material and adverse effect on its ability to carry out its obligations hereunder: and (e) To the best of its knowledge, information and belief, after due enquiry, there are no facts known to it which are likely to give rise to any such Suits which would have a material and adverse effect or its ability to carry out its obligations hereunder, except as disclosed to the CCNF in writing. 15.1 Resolution by Negotiations 15. DISPUTE RESOLUTION If any dispute arises between the CCNT and the NPC as to whether a Party has complied with its obligations under this Agreement or if any dispute or controversy arises between the Parties with respect to the interpretation or implementation of any of the provisions of this Agreement, including the VTS as defined in Section 1.1 (any and all disputes and controversies described in this Article are hereinafter collectively referred to as a "Dispute" or "Disputes "), a Notice of a Dispute by a Party must be delivered to the other Party. The Parties shall make all reasonable efforts to resolve any and all Disputes by amicable negotiations within thirty (30) days of a Notice of a Dispute being delivered (the "Negotiation Period "), including meeting at mutually acceptable times and places as often as they consider necessary, and providing each other, on a without prejudice basis, full, frank, candid and timely disclosure of rele% ant facts, information and documents in order to facilitate such negotiations, provided that in so doing the Parties are bound to comply with all Applicable Laws respecting such disclosure. If either of the Parties refuses or neglects to participate in such amicable negotiations, the other Party may refer the Dispute immediately to mediation under Section 15.2. No Party shall be required to participate in the negotiations specified by this Section 15.1 if a limitation period relating to a right of such Party which is the subject matter of or is related to the Dispute, would expire during the Negotiation Period or within ten (10) days thereafter. 15.2 Notice to Mediate If a Dispute remains unresolved after the Negotiation upon ten (10) days prior written Notice to the other Party, require that a 'Mediator for mandatory mediation. The mediator shall be selected Notice is given under this Section 15.2 within five (5) Business Days such notice, from a list of three (3) mediators identified in the written requiring the mediation. 15.3 Terms of Mediation Period, either Party may, the Dispute be referred to by the Party to whom the of such Party's receipt of Notice given by the Party The purpose of any mediation that takes place pursuant to Section 15.2 shall be to assist the Parties in reaching a voluntary agreement respecting the Dispute. The Parties will, within five (5) Business Days of the selection of the mediator, use commercially reasonable efforts to schedule the mediation date(s). The format and timing of any such mediation shall be as agreed upon by the Parties, acting commercially reasonable, and the mediator, and the costs of the mediator shall be borne equally by the Parties. 15.4 Parties' Representatives Each Party will be entitled to invite its legal counsel and no more than three (3) of its employees or other representatives to attend any such mediation sessions. The inclusion of any other persons, other than the mediator, in the mediation sessions, will require the prior written consent of both Parties. 15.5 Termination of Mediation In the event that any Dispute referred to mediation pursuant to Section 15.2 has not been resolved within ten (10) Business Days of the first mediation session of such mediation, or such further period as may be agreed upon by both Parties in writing, the Parties will instruct the mediator to terminate the mediation by giving written notice of termination of the mediation to both Parties. 15.6 Binding Arbitration En the event that a Dispute has not been resolved by mediation as set out in this Article 15, then either Party may, within ten (10) days of the date of the notice of termination sent by the mediator under Section 15.5, by giving written Notice of its desire for binding arbitration to the other Party, require that the Dispute be resolved through binding arbitration. If such Notice is delivered, the Dispute shall be determined by arbitration by a single arbitrator (the "Arbitrator") to be selected by the Party to whom such notice of binding arbitration is given, and failing such selection, the Arbitrator shall be appointed pursuant to the Arbitration Act, 1991 (Ontario). 15.7 Terms Arbitration - 24 - 15.7.1 Any arbitration hereunder shall be held at Niagara Falls, Ontario or Toronto, Ontario unless the Parties otherwise agree. 15.7.2 The laws to be applied in connection with the arbitration shall be the laws of Ontario and the laws of Canada applicable therein. but including its conflict of law rules. 15.7.3 The procedure to be followed for any arbitration that takes place under this Article 15 shall be as agreed upon by the Parties or, in the event the Parties are unable to reach agreement. as may be determined by the Arbitrator. 15.7.4 Any arbitration may include any other person substantially involved in a common question of fact or law whose presence is required if complete relief is to be accorded in arbitration. provided that such other person has agreed to be bound by such arbitration. 15.7.5 The Arbitrator shall have the power to proceed with the arbitration and to deliver his or her award notwithstanding the default by either Party in respect of any procedural order made by the Arbitrator. 15.7.6 The decision of the Arbitrator will be final and binding upon the Parties. 15.7.7 The Arbitrator shall have the authority to assess the costs of the arbitration against either or both of the Parties. 15.8 Confidentiality All negotiations, mediation and arbitration conducted pursuant to this Article 15, and all information and documents (whether in tangible, electronic or digital form) exchanged by the Parties in connection therewith are confidential. Such information and documents shall not be disclosed to any person other than: (a) the Parties. their legal counsel and any of their representatives, consultants and advisors who need to know such information and documents for the purposes of such negotiations, mediation or arbitration; and (b) the mediator or Arbitrator, except as may be required by Applicable Law or except in the course of any judicial proceeding relating to any arbitration conducted pursuant to the arbitration rules imposed by the Arbitrator. If either Party fails to comply with the provisions of this Section 15.8 before or after the completion of any arbitration, the Arbitrator may enjoin further breaches by such Party of this provision and award damages or other relief against such Party. On completion of any negotiations, mediation or arbitration conducted under this Article 15, each Party shall return to the other Party all copies of such information or documents, whether in tangible, electronic or digital form. 15.9 Continuing Performance 15.9.1 At all times, notwithstanding the existence of any Dispute, the Parties shall continue to perform their respective obligations in accordance with the provisions of this Agreement without prejudice to the right to contest, dispute and challenge the relevant matter in accordance with the provisions of this Agreement, provided that this Section 15.9 shall not apply to a Party where the other Party has repudiated, terminated or abandoned performance of this Agreement or where the first Party asserts claims in fraud or misappropriation. No Partv shall exercise any remedy with respect to an alleged default by another Party under this Agreement if a Dispute with respect to such alleged default has been submitted for resolution pursuant to this Article, until either (i) the Parties have settled the Dispute; or (ii) the Arbitrator has made an award with respect to the Dispute. 15.9.2 Subject to the express provisions of this Agrreement. where there is any Dispute as to the amount of monies owing hereunder by any Partv hereto to any other Party hereto, the portion of the amount owing that is not contested, disputed or challenged, if any, shall be paid when due hereunder. but without prejudice to the rights of the other Party to contest, dispute or challenge the disposition of the remaining portion of the monies claimed. 15.10 Survival The provisions of this Article 15 shall survive any expiration of the Term or other termination of this Agreement. The provisions of this Article 15 shall continue in full force and effect notwithstanding any determination by the Arbitrator or the Parties that one or more other provisions of this Agreement are invalid, contrary to law or unenforceable. 16.1 Waiver 16.2 Further Acts 16. GENERAL AND MISCELLANEOUS Save as expressly set out herein, no waiver of any provision of this Agreement shall be binding unless it is in writing. No indulgence or forbearance by a Party shall constitute a waiver of such Party's right to insist on performance in full and in a timely manner of all covenants in this Agreement. Waiver of any provision shall not be deemed to be a waiver of the same provision thereafter or any other provision of this Agreement at any time. The Parties shall do or cause to be done all such further acts and things as may be reasonably necessary or desirable to give full effect to this Agreement. Without limiting the foregoing, each of the Parties will at any time and from time to time execute and deliver or cause to be executed and delivered such further instruments and such further actions as may be reasonably requested by the other Party to cure any defect in the execution or delivery of this Agreement or to give effect to the provisions of this Agreement. 16.3 Freedom of Information The Parties acknowledge that the terms of this Agreement are subject to the Municipal Freedom of Information and Protection of Privacy Act (Ontario) and the Freedom of Information and Protection of Privacy Act (Ontario). 16.4 Remedies No remedy herein conferred upon or reserved in favour of a Party shall exclude any other remedy herein or existing at law or in equity, but each shall be cumulative and in addition to every other remedy given hereunder or now or hereafter existing. 16.5 Support of Agreement 16.6 Notice 16.7 Counterparts - 7 6_ Each of the Parties agrees that they shall publicly support this Agreement and the VTS in any statements. reports or communications such Party makes to the public. In addition, any press releases of either or both Parties in connection with or relating to this Agreement andor the VTS in any way shall be jointly agreed to in writing prior to its release. Any and all notices required to be sent pursuant to the terms of this Agreement (each a "Notice ") shall be in wri ting and shall be sent by mail, or personally delivered, or by overnight courier, or by facsimile or e -mail (each a "Transmission "), to the Parties at their addresses as set out in Schedule H or to any other address that a Party designates. Any Notice (a) sent by mail. shall be deemed to have been received ten (10) Business Days after mailing; (b) delivered personally or sent by overnight courier, shall be deemed to have been griven when actually received; (c) sent by a Transmission before 3:00 p.m. (Toronto time) on a Business Day. shall be deemed to have been given on that Business Day. or (d) if sent by a Transmission after 3:00 p.m. (Toronto time) on a Business Day or at any time on a day that is not a Business Day, shall be deemed to have been given on the Business Day after the date of the Transmission. Any Notice given by one Party to the other under this Agreement shall be given in writing at the address of the other Party as set forth below or at such other address as may have been furnished in writing for such purpose. This Agreement may be executed in any number of counterparts. each of which shall be deemed to be an original, and all of which together shall be deemed to be one and the same instrument and receipt of a facsimile or portable document format (.pdf) version of an executed signature page of this Agreement by a Party shall constitute satisfactory evidence of execution of this Agreement by such Party. - 27 - IN WITNESS WHEREOF, the Parties hereto have executed this Agreement on the date first written above. THE CORPORATION OF THE CITY OF NIAGARA FALLS Per: James M. Diodati, Mayor Per: Dean Iorfida, City Clerk I/We have authority to bind the corporation. THE NIAGARA PARKS COMIMISSION Per: Fay Booker, General Manager I have authority to bind the corporation. See attached. Schedule A VTS FACILITY LOCATION Ktfif ® 10 WW0-1111A 331444- NE& 4 1 w Z See attached. - 28 - Schedule B BLUE LINE i toyNI a 7 uvwy wm°wrw.� co- 17 d n•• 1] ° o n1 11A •Am°RP�wmw ° °a?�.° O p � ° dheotA is ME ,p 4 S N MINNOW u ".xA. .ve spa p � •� r e y �ji o kiY�va °° > 9 � 8■ r��fi�ll l Ektia �� s I 01 Ern ss g AZEL,...td[iv O, s S g i . Y0 153N LIJ o 0 i 8 E ob i �z smiceith* sa A3aune 0 .4 g 59 4 15!OO!fie 1l 00 6a o titlY s qww or�a� gi� Era -Poe s,pes,c3.77 N � mold% a i .. ! v c� ff� c°Ai4Vi 8tr G'41° ga dog Awe 1. 1 om, ®mOmo pwvvuvgm0 Q Co, 4 • A 1— > 2 W z 0 Q O a r 0 loe O Ioe wO 7 J m N W 0 I Z H Z Z M C O 0 cc See attached. - 29 - Schedule C GREEN LINE See attached. - 30 - Schedule D RED LINE See attached. -31 - Schedule E VTS BUS LEASE RECITALS: BETWEEN: ff *o ,',i f,n VEHICLE LEASE THIS VEHICLE LEASE made and entered into 25`" day of August. 2011. THE CORPORATION OF THE CITY OF NIAGARA FALLS ( "Lessor "), -and - THE NIAGARA PARKS COMMISSION ( "Lessee "). WHEREAS Lessee and Lessor entered an agreement on the date hereof pursuant to which Lessee and Lessor agreed to, inter alia, establish a visitor transportation system ( "VTS ") that results in people having improved convenient transportation to and from certain areas within the Park and the City of Niagara Falls by coordinating bus service operations among and between their respective bus lines through integrated and coordinated practices in areas such as scheduling, traffic patterns, bus specifications, branding and operational terms, and by providing the opportunity for passengers to conveniently transfer between such bus lines without additional payment (the "VTS Agreement "); AND WHEREAS Lessor shall enter into an agreement with each of the Government of Canada and the Government of the Province of Ontario pursuant to which each such Government will provide Lessor with Twenty -Five Million Dollars ($25,000,000) to fund the capital costs of the VTS, subject to certain terms (the "Contribution Agreements "); AND WHEREAS Lessor has agreed to use certain of such funds received from the Government of Canada and the Government of the Province of Ontario to acquire twenty (20) clean diesel articulated sixty (60) foot buses and seven (7) clean diesel forty (40) foot buses (collectively, the "VTS Bus Fleet "), and each such bus will have installed on it intelligent transportation system hardware and software ("ITS ") and will be used for the operation of the VTS: AND WHEREAS Lessee wishes to lease from Lessor nine (9) clean diesel articulated sixty (60) foot buses and two (2) clean diesel forty (40) foot including all equipment, attachments and accessions thereto and all substitutions and replacements thereof, all as more fully described in Schedule A attached hereto, (collectively, the "Vehicles ") and Lessor is prepared to acquire the VTS Bus Fleet that will include nine (9) clean diesel articulated sixty (60) foot buses and two (2) clean diesel forty (40) foot buses with the specifications set out described in Schedule A and lease the Vehicles to Lessee on the terms and conditions of this Lease. NOW THEREFORE THIS AGREEMENT WITNESSES THAT in consideration of the rental payments, the mutual covenants and agreements hereinafter contained and other good and valuable consideration (the receipt and sufficiency of which are hereby acknowledged by each of the Parties hereto), the Parties agree as follows: 1.1 Definitions In this Lease, unless there is something in the subject matter that is inconsistent therewith, the following terms have the following meanings: "Applicable Law" means (i) any domestic or foreign statute, law (including the common and civil law and equity), constitution, code, ordinance, rule, regulation, restriction, regulatory policy or guideline having the force of law, by -law (zoning or otherwise) or order, (ii) any consent, exemption, approval or licence of any Governmental Authority, and (iii) any policy, practice or guideline of, or contract with, any Governmental Authority which, although not actually having the force of law, is considered by such Governmental Authority as if having the force of law; L)M FQt'208195- 00018;4914665.6B 2 ARTICLE 1 INTERPRETATION "Billing Period" means the twelve (12) month period beginning thirty (30) days following Lessee's acceptance of the Vehicles in accordance with Section 2.4; "Business Day" means Monday through Friday except for any statutory or civic holidays observed in the City of Niagara Falls; "Contribution Agreements" has the meaning given to it in the second Recital to this Lease; "Governmental Authority" means (i) any court, judicial body or arbitral body, (ii) any domestic or foreign government whether multinational, national, federal, provincial, territorial, state, municipal or local and any governmental agency, governmental authority, governmental tribunal or governmental commission of any kind whatever, (iii) any subdivision or authority of any of the foregoing, (iv) any quasi - governmental or private body exercising any regulatory, expropriation or taxing authority under or for the account of any of the above, (v) any supranational or regional body such as the World Trade Organization, and (vi) any stock exchange; "HST" has the meaning given to it in Section 9.1; "including" means "including without limitation "; 1.2 Binding Effect Dht FOR-20S (95-0001 `.t 4914665.68 3 "ITS" has the meaning given to it in the third Recital to this Lease; "Lease" means this vehicle lease and all attached schedules, as the same may be supplemented, amended, restated or replaced from time to time; "Lessee Default" has the meaning given to it in Section 13.1; "Notice" has the meaning given to it in Section 14.8; "Operational Date" has the meaning ascribed thereto in the VTS Agreement; "Ownership Documents and Tools" means all ownership, instruction and maintenance manuals, certificates of ownership, warranty documentation, spare parts and tools relating to the Vehicles and any and all equipment and fixtures installed in or on the Vehicles, including the ITS, and related warranty documentation, delivered with the Vehicles before or at the time of the acceptance of the Vehicles by Lessee in accordance with Section 2.4, or delivered by the manufacturer of the Vehicles to either Lessor or Lessee subsequent to such acceptance; "Park" has the meaning given to it in the Niagara Parks Act (Ontario); "Parties" means, collectively, each of the signatories to this Lease, and "Party" means either of them; "Rent" has the meaning given to such term in Section 4.1; "Sales Taxes" has the meaning given to such term in Section 4.4; "Term" has the meaning given to it in Section 3.1; "Vehicles" has the meaning given to it in the fourth Recital to this Lease, and "Vehicle" means any one of them; "VTS" has the meaning given to it in the first Recital to this Lease; "VTS Agreement" has the meaning given to it in the first Recital to this Lease; "VTS Bus Fleet" has the meaning given to it in the third Recital to this Lease; and "Warranty Rights" means the full benefit of all warranties, warranty rights, guarantees, indemnities, undertakings and similar covenants (implied, express or otherwise) against manufacturers or sellers which apply to any of the Vehicles. This Lease shall be binding upon and shall enure to the benefit of the Parties and their respective successors and permitted assigns. 4 1.3 Construction (a) Each obligation or agreement of Lessor or Lessee expressed in this Lease, even though not expressed as a covenant, is considered to be a covenant for all purposes. (b) The division of this Lease into Articles and Sections and the insertion of headings are for convenience of reference only and do not affect the construction or interpretation of this Lease. (c) The terms "hereof', "herein ", "hereby ", "hereunder ", "hereto ", "hereinafter" and similar expressions refer to this Lease and the Schedules and not to any particular Article, Section, Schedule or other portion hereof. Unless something in the subject matter or context is inconsistent therewith, references herein to Articles, Sections and Schedules are to articles and sections of and schedules to this Lease. (d) The provisions of this Lease shall be deemed severable, and the termination, invalidity or unenforceability of any one or more of the provisions hereof shall not affect the validity or enforceability of the other provisions hereof. (e) Words importing the singular number include the plural and vice versa, words importing any gender include all genders and words importing persons include individuals, corporations, limited and unlimited liability companies, general and limited partnerships, associations, trusts, unincorporated organizations, joint ventures and Governmental Authorities. (f) Time is of the essence of this Lease and of every part hereof. (g) No amendment to this Lease will be valid or binding unless set forth in writing and duly executed by both of the Parties. (h) All references to currency herein are to lawful money of Canada. (i) Unless otherwise provided herein, each reference to an enactment is deemed to be a reference to that enactment, and to the regulations made under that enactment, as amended or re- enacted from time to time. Similarly, unless otherwise provided herein, each reference to an agreement is deemed to be a reference to that agreement, as it may be supplemented, amended or restated from time to time. (j) If any action is required to be taken pursuant to this Lease on or by a specified date which is not a Business Day, then such action shall be valid if taken on or by the next succeeding Business Day. (k) The provisions of this Lease shall not affect the rights of the Parties which may subsist from time to time to any other agreements between them dated concurrently with or subsequently to this Lease nor relieve the Parties of any obligations they may have pursuant to such agreements. DM I OR 20`i S 4414665.6B 1.4 Schedules 1.5 Governing Jurisdiction and Attornment The Parties hereby agree that this Lease and the provisions hereof shall be construed in accordance with the laws of the Province of Ontario and the laws of Canada and the Parties attorn to the jurisdiction of the Courts of the Province of Ontario. 1.6 Entire Agreement This Lease constitutes the entire agreement and understanding by and between the Parties, except as herein otherwise expressly provided. There are no representations, warranties, promises, terms, conditions, undertakings or collateral agreements or understanding, written or oral, express or implied between the Parties pertaining to the subject matter hereof other than as expressly set forth in this Lease. 2.1 Lease (a) Lessor does hereby lease to Lessee, and Lessee does hereby hire for rent from Lessor the Vehicles described in Schedule A hereto which Schedule is incorporated into and forms a part of this Lease. This Lease is expressly made subject to the terms, conditions, and agreements contained in this Lease. (b) Lessor does hereby confirm receipt from Lessee, prior to August 15, 2011, of all Vehicle specifications necessary to place the order for purchase of the Vehicles as part of Lessor's order for purchase of the VTS Bus Fleet. Lessor does hereby further confirm that the initial order requirements for the purchase of the VTS Bus Fleet, including the Vehicles, ( "Purchase Order ") has been completed. Lessor will not, without the prior written consent of Lessee, cancel, supplement or alter the Purchase Order in respect of, or in any way relating to, the Vehicles. (c) Lessor will use its best efforts to consult with Lessee and take into consideration any of Lessee's requests and suggestions for the specifications for the buses in the VTS Bus Fleet, and to coordinate with and include Lessee in all manufacturer site visits scheduled for design and manufacture specification inspections of the VTS Bus Fleet. Further, Lessor will ensure that Lessee is given an opportunity to inspect one Vehicle of each type of model identified in Schedule A following such Vehicle's manufacture but prior to its road test in order to assess compliance with specifications set out in Schedule A. DN1 TOR- 'O5195 - 000184914665 6B 5 The following attached schedules are attached to and form part of this Lease: Schedule A Vehicles Schedule B - Notice Details ARTICLE 2 LEASE (d) Lessor will consult with Lessee and ensure that all design, manufacture and other order specifications for the Vehicles to be submitted to the manufacturer of the Vehicles following the date hereof, which such specifications will be added to Schedule A in accordance with Section 10.1, will be as determined by Lessee provided that any such specifications are unique to the Vehicles alone and in addition to the specifications on the remainder of the buses in the VTS Bus Fleet; which result in the Vehicles being more expensive that the remainder of the buses in the VTS Bus Fleet of similar size, Lessee will be responsible for the additional costs resulting from such unique and additional specifications where such additional costs are not covered by the NPC Allocated Capital (as such term is defined in the VTS Agreement) in accordance with section 10 of the VTS Agreement. 2.2 Grant of Security Interest Lessee grants to Lessor a security interest in the Vehicles, and all parts, components, accessories, accessions, replacements, substitutions, additions and improvements to the Vehicles, and the proceeds therefrom or any other goods or intangibles received as a result of the Vehicles being sold, dealt with, or otherwise disposed of, as general continuing security for the payment of all indebtedness and liabilities of Lessee to Lessor arising under and pursuant to this Lease. 2.3 Lease Characterization Lessor and Lessee characterize this Lease as a lease for accounting, income and sales tax purposes. Lessor and Lessee agree that Lessor is the only party entitled to claim income tax deductions for capital cost allowance with respect to the Vehicles under the Income Tw. Act (Canada) and Provincial income tax legislation. 2.4 Acceptance At least ten (10) days prior to delivery of a Vehicle to Lessee, Lessor will ensure Lessee is given an opportunity to inspect such Vehicle to assess compliance with specifications set out in Schedule A. Acceptance of delivery of a Vehicle by Lessee, or its representative, shall constitute Lessee's acknowledgement and approval that the Vehicle is of the make and model, and is equipped, as specified by Lessee, is in satisfactory condition and is leased under this Lease; such acknowledgement and approval not to be unreasonably withheld. 2.5 Quiet Enjoyment Lessee may retain possession and quiet enjoyment of each Vehicle until the end of the Term as long as (i) Lessee makes due and timely payment of all monthly invoices and other amounts due under this Lease, and (ii) Lessee performs all of its other covenants and obligations under this Lease in all material respects. DM 10R2U81 6 DM JOR 208195- 00018; 4914.665.66 - 7 - 2.6 Option to Purchase on Expiration/Termination Lessee shall have the option to purchase all, but not less than all, Vehicles together with their respective Ownership Documents and Tools as at the expiry of the Term or termination of this Lease pursuant to Section 3.2(b)(i); such purchase to be on an "as is, where is" basis, without recourse, representation or warranty other than (i) good and marketable title to the Vehicles and their respective Ownership Documents and Tools, and (ii) the Vehicles and their respective Ownership Documents and Tools are free and clear of liens and encumbrances; at a purchase price equal to One Dollar ($1.00) per Vehicle as of the date of expiry or such termination, plus any applicable Sales Taxes thereon required to transfer the Vehicles to the Lessee (including the costs of certificates of mechanical fitness and emissions certificates to the extent required under Applicable Laws). To exercise the option, Lessee shall give written notice to Lessor, on or before thirty (30) days of the expiration of the Term or if otherwise terminated, within ten (10) days of the effective termination date, specifying a closing date which is between the thirtieth (30` and sixtieth (60 day following the expiration date or effective date of the termination, as the case maybe. The Parties shall conclude the sale and purchase of the Vehicles on or before the specified closing date or such other date as may be mutually agreed. At closing Lessee shall pay Lessor against transfer of title to the Vehicles by cash, certified cheque or by any other method acceptable to Lessor the aggregate purchase price of such Vehicles including applicable Sales Taxes. 2.7 Lesse's Purchase on Termination Lessee shall purchase all, but not less than all, Vehicles together with their respective Ownership Documents and Tools as at termination of this Lease pursuant to Section 3.2(b)(ii); such purchase to be on an "as is, where is" basis, without recourse, representation or warranty other than (i) good and marketable title to the Vehicles and their respective Ownership Documents and Tools, and (ii) the Vehicles and their respective Ownership Documents and Tools are free and clear of liens and encumbrances; at a purchase price equal to the sum of: (a) One Dollar ($1.00) per Vehicle, and (b) the aggregate amount of moneys that Lessor paid to acquire the Vehicles less the aggregate amount of moneys that Lessor has been reimbursed under the Contribution Agreements, and (c) any claw back of funds under the Contribution Agreements that pertains to, is connected to or relates to the Vehicles specifically if any such claw backs are made of Lessor, as of the date of such termination, plus any applicable Sales Taxes thereon required to transfer the Vehicles to the Lessee (including the costs of certificates of mechanical fitness and emissions certificates to the extent required under Applicable Laws). The closing date for such purchase shall be, and the Parties shall conclude the sale and purchase of the Vehicles, on the effective termination date set out in the notice delivered pursuant to Section 3.2(b)(ii). At such closing Lessee shall pay Lessor against transfer of title to the Vehicles by cash, certified cheque or by - 8 - any other method acceptable to Lessor the aggregate purchase price of such Vehicles plus applicable Sales Taxes. ARTICLE 3 TERM AND TERMINATION 3.1 Term of Lease (a) This Lease shall become effective on the date hereof and shall remain in effect until the tenth (10` anniversary of the Operational Date, unless earlier terminated as provided herein (the "Term "). (b) Notwithstanding any other provision in this Lease, if the Operational Date does not occur on or before the 30` day of March, 2013 (or such other date as the March 30, 2013 date is extended under the Contribution Agreements), this Lease shall be null and void and of no force and effect. 3.2 Termination (a) Lessor shall have the right to terminate this Lease immediately, in the event of Lessee's bankruptcy or insolvency, or any initiation, voluntary or involuntary (made in good faith), of bankruptcy or insolvency of Lessee. If Lessor terminates this Lease pursuant to this Section 3.2(a), Lessee shall forthwith return the Vehicles in their original condition, normal wear and tear excepted. (b) Lessee shall have the right to terminate this Lease: (i) immediately, in the event of Lessor's bankruptcy or insolvency, or any initiation, voluntary or involuntary (made in good faith), of bankruptcy or insolvency of Lessor; and (ii) at anytime during the Term by giving Lessor not less than on ninety (90) days prior written notice of its intent to terminate this Lease and purchase the Vehicles pursuant to Section 2.7. (c) For greater certainty, (i) a termination of the VTS Agreement in accordance with its terms shall not result in a termination of this Lease; and 3.3 Rights and Obligations on Expiry/Termination Upon expiry of the Term or other termination of this Lease, all rights and obligations of Lessor and Lessee under this Lease shall cease except those which are stated DM FOR 00018;4 (ii) a termination of this Lease pursuant to this Section 3.2 shall not result in a termination of the VTS Agreement. herein to survive termination, and except for the obligation to pay any monies owing at the time of expiration or other termination. 4.1 Rental For the use of each Vehicle, Lessee shall pay to Lessor the amount of One Dollar (S1.00) per year (or part thereof), during the period commencing on the first day of the month immediately following the Operational Date and ending on the expiration of the Term or earlier termination of this Lease ( "Rent "). 4.2 Invoicing Lessor will render to Lessee an annual invoice for each Billing Period, which will be dated the first of the first month of such Billing Period and payable within thirty (30) days of the invoice date, showing the total annual rental payable for such Billing Period for all of Vehicles, any applicable Sales Taxes and all other details required for Lessee to claim input tax credits. Lessor shall deliver such invoice to Lessee not later than the first day of each Billing Period to which it relates in order to facilitate Lessee processing payment on a timely basis. Lessee shall, upon receipt of each such invoice, pay Lessor the total amount shown by cheque or pre - authorized debit, electronic funds transfer or other agreed mode of payment, payable in Canadian funds. Cheques must be mailed or delivered to Lessor at its address shown in Schedule B or to such other address as shall be given to Lessee by Notice from time -to -time by Lessor. 4.3 Late Payment Charge If any Rent is not paid by its due date or if any other amount payable under this Lease by Lessee to Lessor (including interest) is not paid when due, interest shall accrue and be payable on demand on such unpaid amount both before and after judgement, from the due date until paid, at a rate of one percent (1%) o) per annum. 4.4 Sales Taxes Except as otherwise specified in this Lease, all amounts payable pursuant to this Lease do not include any sales, use or value -added taxes, including HST, (collectively, "Sales Taxes "). The Parties agree that they will cooperate to collect, remit, report and pay all applicable Sales Taxes as required by, and in accordance with, the applicable legislation and regulations made thereunder. 4.5 Set - off Lessee's obligations to pay Rent and any other amounts payable hereunder and to perform its other obligations hereunder are subject to any right of set -off. I)M 1'(1R 208 5 -0001 8.4914665.h13 -9 ARTICLE 4 RENTAL 5.1 Maintenance and Use Lessee shall only use the Vehicles or permit their use for lawful purposes, within Ontario, in accordance with all Applicable Laws relating to the registration, leasing, insurance, possession, use or operation of the Vehicle, and shall use the Vehicles in accordance with all conditions of any applicable insurance policies and in accordance with the terms of the VTS Agreement. No Vehicle shall be used for the transportation for hire of goods or passengers or for towing any property other than in accordance with the Vehicle manufacturer's specifications. Lessee shall maintain, at its expense, each Vehicle in good condition and repair at all times, ordinary wear and tear excepted. Lessee shall comply, and cause all persons operating the Vehicles to comply, with (i) all Applicable Laws relating to the registration, leasing, insurance, possession, use and operation of the Vehicles, including operators' licensing requirements, and (ii) all conditions of the policies of insurance on the Vehicles. 5.2 Decal & Painting Lessee may. at Lessee's sole expense, decal and paint the interior and exterior of the Vehicles for the duration of the Tenn provided, however, that Lessee will also be responsible for removing the decal and returning the Vehicles in their original condition at the expiration of the Term or earlier termination of this Lease if the Lessee does not exercise its option to purchase the Vehicles pursuant to Section 2.6. Lessee shall be solely responsible for all matters related to such decal and painting, and shall ensure that such decal and painting are in compliance with the bus branding terms set out in the VTS Agreement, and otherwise does not infringe any rights of any third party whatsoever. 6.1 Insurance (a) Lessee, at its own expense, shall at all times during the Term obtain and keep effective, the following insurance coverage issued by insurers licensed to write business in Ontario: (i) Automobile insurance per statutory requirements in Ontario, Ontario Automobile Policy (OAP1) Owner's Policy section 3 and 4, auto liability for a limit of not less than Ten Million Dollars ($10,000,000.00) per occurrence including accident benefit, section 7, loss or damage coverage — all perils, and OPCF 5 — Permission to Rent or Lease Automobiles and Extending Coverage to the Specified Lessee(s), subject to a maximum Ten Thousand Dollars ($10,000.00) deductible. Lessee agrees to immediately pay the deductible hereunder. (b) Each of the foregoing policies of insurance shall name Lessor as an additional insured as its interests as registered owner of the Vehicles may appear. DM TOR :20$195 - 00018 4914 6 ^.6B - 10- ARTICLE 5 MAINTENANCE, USE AND REPAIRS ARTICLE 6 INSURANCE 6.2 Compliance with Laws 6.3 Certificates of Insurance 7.1 Risk and Liability 7.2 Responsibility 7.3 Obligation to Indemnify DM I OR, '_ rioo1 8 4914665 6B Notwithstanding anything herein contained to the contrary, in the event that Lessee is required by provincial or other local laws to have in place certain insurance coverage, Lessee shall ensure that the insurance obtained and maintained is in compliance with the requirements of all such Applicable Laws. Prior to and as condition to the delivery of any Vehicle to Lessee, Lessee shall provide Lessor with a current certificate of insurance from the insurance company indicating that the insurance described in this Article has been obtained and will be maintained for the Term. Lessee shall notify Lessor of any change to such insurance no less than thirty (30) days prior to the effective date of such change indicating the nature of such change. ARTICLE 7 RISK OF LOSS & LIABILITY Upon delivery, Lessee shall assume all risk and liability for any loss, theft, destruction and damage to the Vehicles from whatever cause, including, without limitation, the use and operation of the Vehicles, and Lessee shall indemnify and save Lessor harmless from and against all claims, actions, causes of action, suits, demands, losses, damages, costs, expenses (including, without limitation, attorneys' and experts' fees and expenses), fines and penalties, including (without limitation) bodily injury and death and property damage (including, without limitation, damage to any Vehicle), relating to, arising out of or contributed to by: (a) any failure, breach of or default under any provision of this Lease by Lessee; (b) any negligence, recklessness or wilful misconduct of Lessee or any of its owners, operators, agents, representatives or passengers, servants or employees; (c) the use, condition or operation of the Vehicle during the Term; and (d) any failure to strictly comply with any Applicable Laws relating to the operation, use or possession of the Vehicles during the Term and with any insurance policies. Lessee shall be responsible for any acts or omissions of Lessee, its owners, operators, agents, representatives, passengers, servants or employees. Notwithstanding any other provision of this Lease or the availability, existence or collectibility of any insurance, Lessee shall indemnify and save harmless Lessor from and 7.4 Accessions to Vehicles 7.5 Limitation of Liability 8.1 Warranty Disclaimer DRt TOR 2081a5_0001 4814605 - 12- against any and all losses, costs, damages, claims and liabilities of whatever kind or nature, including, without limitation, reasonable legal fees and disbursements on a solicitor and client basis incurred or suffered by Lessor and relating in any way whatsoever to any Vehicle or the possession, use. or operation of a Vehicle by Lessee. Lessee irrevocably waives in favour of Lessor the benefit of all applicable limitation periods, including, without limitation, any arising under highway traffic legislation with respect to claims relating to motor vehicles. Notwithstanding the foregoing: (i) Lessee is not responsible for any damage caused to a Vehicle or theft or loss of a Vehicle, which occurs due to the fault or neglect of Lessor while a Vehicle is in Lessor's possession: and (ii) in no event will Lessee be liable to Lessor for loss of profits, loss of a business opportunity or any other consequential loss, even if Lessee has been notified in advance of the possibility of such loss. Notwithstanding the foregoing in this Section 7.3, the Parties acknowledge that Lessee's indemnification obligations hereunder are subject to Applicable Laws, including the limitation placed on Lessee's ability to grant an indemnity under the Financial Administration Act (Ontario). Any and all repairs, replacements, substitutions of parts on any Vehicle shall be deemed accessions to the Vehicle and, during the Term. title thereto shall vest and remain in Lessor. regardless of who pays for such repairs, replacements, substitutions of parts. Lessor shall not be responsible to Lessee, its owners, operators, agents, representatives or passengers, servants or employees, for any indirect, incidental, consequential or special damages, howsoever arising, whether in contract, tort or otherwise, including, without limitation, any loss of business or profits, or other damage as the result of any accident or failure involving the Vehicle while in Lessee's care, custody or control, or for the time lost in the repairing or replacing of the Vehicle. ARTICLE 8 WARRANTY DISCLAIMER Lessee acknowledges that each Vehicle is selected by it and Lessor has no liability whatsoever to Lessee for any loss or damage of any kind whatsoever suffered by Lessee, whether directly or indirectly, as a result of any defect in a Vehicle, failure of a Vehicle to perform properly or any other matter whatsoever relating to a Vehicle. LESSEE EXPRESSLY WAIVES ANY AND ALL CLAIMS AGAINST LESSOR FOR SUCH LOSSES OR DAMAGES, AND ACKNOWLEDGES THAT, EXCEPT AS EXPRESSLY SET OUT IN THIS LEASE. THERE ARE NO REPRESENTATIONS, WARRANTIES, CONDITIONS OR OTHER AGREEMENTS, EXPRESS OR IMPLIED, STATUTORY OR OTHERWISE, ON THE PART OF LESSOR UNDER THIS LEASE OR OTHERWISE, EXCEPT AS MAY BE SET FORTH IN WRITING DATED CONCURRENTLY WITH OR SUBSEQUENT TO THIS LEASE. 8.2 Rights Against Manufacturers - 13 - Lessor will ensure that any and all Warranty Rights in each Vehicle are either in the name of the Lessee or are fully assignable to the Lessee so that the Lessee gets full benefit under all such Warranty Rights. During the Term, Lessor will assign or otherwise make available to Lessee all of Lessor's rights, if any, under any Warranty Rights in each Vehicle. If at any time during the Term, Lessee determines that there is a defect in a Vehicle or a Vehicle does not operate as represented or warranted by the manufacturer or is otherwise unsatisfactory for any reason, Lessor will fully cooperate with Lessee to make any reasonable complaint or claim against the applicable manufacturer in respect thereof. 8.3 Actions of Dealer Lessee acknowledges that no dealer, salesman or agent of a dealer is authorized to waive or alter any term or condition of this Lease, or to add any provision, condition, representation or warranty to this Lease. 9.1 Additional Fee ARTICLE 9 ADDITIONAL FEE AND EXPENSES In addition to the Rent, Lessee shall pay to Lessor an additional fee in the amount equal to the tax exigible pursuant to Part IX of the Excise Tax Act (Canada) ( "HST ") that Lessor is required to pay on its acquisition of the of the Vehicles but is not legally entitled to recover by way of rebate, input tax credit, or other form of refund ( "Unrecoverable HST "). Lessor shall properly claim all such available rebates, input tax credits. or other form of refunds, but in any event, Lessee shall not be required to pay Lessor any amount of Unrecoverable HST that is unrecoverable due to any failure by Lessor, including any failure to properly claim a rebate, input tax credit or refund. In the event that the HST is replaced by a substantially similar tax, the additional fee payable by Lessee shall be equal to the unrecoverable portion of such tax, subject to restrictions similar to those described above in this Section. 9.2 Expenses (a) Lessee shall pay directly all costs, expenses, fees, and charges, plus any HST exigible thereon, incurred in connection with the titling and registration of the Vehicles and the use and operation of the Vehicles during the Term, including, but not limited to, fuel, lubricants, replacement parts and accessories, repairs, maintenance, storage, parking, tolls, fines, registration fees, license fees, and tags. (b) If Lessee fails to make any payment required or fails to perform or comply with any of its obligations hereunder, Lessor may make such payment or perform such obligations as agent for and on behalf of Lessee, and the amount of such payment, including reasonable expenses, shall be payable by Lessee on demand. If Lessor makes payment of any HST pursuant to this Section on behalf of Lessee, Lessor agrees not to claim any rebates, input tax credits or other forms of refund in respect of such HST. DAt 1 0Po208195 -00018 49140)5.6B 10.1 Amendments to Vehicles Schedule 11.1 Title and Registration 11.2 Security Registrations DM TOR 2081 - 14 - ARTICLE 10 AMENDMENTS TO VEHICLES SCHEDULE The Parties acknowledge and agree that the Vehicle details listed on Schedule A hereto must be amended, added to, or otherwise modified (each, a "Vehicle Schedule Supplement ") from time to time to more clearly identify the Vehicles and to incorporate further manufacturing specifications of the Vehicles, including the addition of the Vehicles' vehicle identification numbers, other equipment identification numbers and licence plate numbers. Each Vehicle Schedule Supplement shall be signed and dated by the Parties and the terms and conditions of this Lease shall be effective in respect of the vehicle details listed on such Schedule A Supplements as of the effective date of such Vehicle Schedule Supplements. The Parties hereby undertake to add to Schedule A, on or before the Operational Date, in a Vehicle Schedule Supplement. the Vehicles vehicle identification numbers and licence plate numbers. ARTICLE 11 TITLE AND REGISTRATION Title and ownership of the Vehicles shall at all times during the Term remain vested in Lessor and Lessee shall not do anything prejudicial thereto. Lessee shall not pledge, grant a security interest in or encumber the Vehicles in any manner whatsoever or permit any lien or security interest to be placed thereon. Each Vehicle which requires licensing or registration shall be licensed and registered in Ontario, Canada in the name of Lessor, unless otherwise required by Applicable Law, in which case such registration will indicate that Lessor is Lessor of the Vehicle. Renewal of any license or registration of a Vehicle shall be the sole responsibility of Lessee. Lessee acknowledges (i) that any registration by Lessor under the Personal Property Security Act (Ontario) in respect of this Lease is made out of an abundance of caution and without thereby diminishing Lessor's retention of title or other rights hereunder or thereby acknowledging the applicability of such legislation, (ii) Lessor shall bear its own costs and expenses for registration under the Personal Property Security Act (Ontario) at the time of delivery of each Vehicle leased hereunder, (iii) receipt of a fully executed copy of this Lease and (iv) that, without limitation, for purposes of registration under such legislation each security agreement made by Lessee with or in favour of Lessor (whether before, on or after the date of this Lease) is connected with each other such security agreement. 12.1 Assignment 13.1 Default 13.2 Rights on Default 14.1 Waiver D:N1 FOR 2i3S 145- p0O18 4914665.613 - 15 - ARTICLE 12 ASSIGNMENT Neither this Lease nor any interest herein may be assigned by either Party without the prior written consent of the other Party. Any subleasing or reletting of the Vehicles is prohibited. ARTICLE 13 DEFAULT If Lessee fails to pay when due any rent or other amount payable under this Lease, or fails to perform or observe any of its other obligations under this Lease, and such failure continues for a period of fifteen (15) days after written notice by Lessor to Lessee to cure such failure (a "Lessee Default "), Lessor may declare Lessee to be in default under this Lease. (a) Upon declaration by Lessor that Lessee is in default under this Lease, and notwithstanding any other provision of this Lease, and, subject always to all Applicable Laws, Lessor shall have the following remedies: (i) collect all moneys from Lessee due to Lessor hereunder as at the date of such termination, and (ii) collect all moneys from Lessee that would have been paid to Lessor on account of monthly Rent for the Term if the Lease had not been terminated early. (b) The foregoing rights and remedies on a Lessee Default are cumulative and not alternative. are in addition to and not in substitution for any and all other rights and remedies otherwise available to Lessor including, without limitation, its right of set -off, and may be exercised separately or together, whether before or after any termination of this Lease. Lessor may refrain from exercising any one or more of its rights or remedies without incurring any liability to Lessee and the exercise of any right or remedy shall not preclude its further exercise. ARTICLE 14 GENERAL AND MISCELLANEOUS Save as expressly set out herein, no waiver of any provision of this Lease shall be binding unless it is in writing. No indulgence or forbearance by a Party shall constitute a waiver of such Party's right to insist on performance in full and in a timely manner of all covenants in this Lease. Waiver of any provision shall not be deemed to be a waiver of the same provision thereafter or any other provision of this Lease at any time. 14.2 Lessee Governing Legislation and Code of Conduct (a) Lessee is a Provincial Crown Agency and a corporation incorporated by an Act of the Provincial Legislature of Ontario on the 23rd of April 1887 and continued under the Niagara Parks Act, R.S.O. 1990, Chapter N.3. Lessor has read and is familiar with such Act and the statutory jurisdiction of Lessee to control activities in the Park through such Act and R.R.O. 1990, Regulation 829 (collectively, "NPC Legislation "), including the conduct of persons using the Park, permissions, advertising and signage, licences, traffic rules and the control of transportation in the Park. Lessor will cause each of its current and future directors, officers, employees and members to adhere to the NPC Legislation and any written directives from Lessee to ensure compliance with NPC Legislation and hereby assumes all responsibility for any failure to comply with the terms of this Section. (b) Lessor has read and is familiar with Lessee's Code of Conduct located at www.niagaraparks.comifiles /Code -of- Conduct.pdf and hereby agrees to adhere to the principles and all provisions of such Code of Conduct applicable to Lessor. Lessor will cause each of its current and future directors, officers, employees and members to read and adhere to such Code of Conduct and hereby assumes all responsibility for any failure to comply with the terms of such Code of Conduct on the part of Lessor and such persons. 14.3 Further Acts 14.4 Freedom of Information - 16- The Parties shall do or cause to be done all such further acts and things as may be reasonably necessary or desirable to give full effect to this Lease. Without limiting the foregoing, each of the Parties will at any time and from time to time execute and deliver or cause to be executed and delivered such further instruments and such further actions as may be reasonably requested by the other Party to cure any defect in the execution or delivery of this Lease or to give effect to the provisions of this Lease. The Parties acknowledge that the terms of this Lease are subject to the Municipal Freedom of Information and Protection of Privacy Act (Ontario) and the Freedom of Information and Protection of Privacy Act (Ontario). 143 Remedies No remedy herein conferred upon or reserved in favour of a Party shall exclude any other remedy herein or existing at law or in equity, but each shall be cumulative and in addition to every other remedy given hereunder or now or hereafter existing. 14.6 Support of Lease Each of the Parties agree that they shall publicly support this Lease and the VTS in any statements, reports or communications such Party makes to the public. In addition, any DM TOR 208 I 5- 00018'4914665 6[ press releases of either or both Parties in connection with or relating to this Lease and/or the VTS in any way shall be jointly agreed to in writing prior to its release. 14.7 Dispute Resolution (a) Resolution by Negotiations If any dispute arises between the CCNF and the NPC as to whether a Party has complied with its obligations under this Agreement or if any dispute or controversy arises between the Parties with respect to the interpretation or implementation of any of the provisions of this Agreement (any and all disputes and controversies described in this Article are hereinafter collectively referred to as a "Dispute" or "Disputes "), a Notice of a Dispute by a Party must be delivered to the other Party. The Parties shall make all reasonable efforts to resolve any and all Disputes by amicable negotiations within thirty (30) days of a Notice of a Dispute being delivered (the "Negotiation Period "), including meeting at mutually acceptable times and places as often as they consider necessary, and providing each other, on a without prejudice basis, full, frank, candid and timely disclosure of relevant facts, information and documents in order to facilitate such negotiations, provided that in so doing the Parties are bound to comply with all Applicable Laws respecting such disclosure. if either of the Parties refuses or neglects to participate in such amicable negotiations, the other Party may refer the Dispute immediately to mediation under Section 14.7(b). No Party shall be required to participate in the negotiations specified by this Section 14.7(a) if a limitation period relating to a right of such Party which is the subject matter of or is related to the Dispute, would expire during the Negotiation Period or within ten (10) days thereafter. (b) Notice to Mediate If a Dispute remains unresolved after the Negotiation Period, either Party may, upon ten (10) days prior written Notice to the other Party, require that the Dispute be referred to a mediator for mandatory mediation. The mediator shall be selected by the Party to whom the Notice is given under this Section 14.7(b) within five (5) Business Days of such Party's receipt of such notice, from a list of three (3) mediators identified in the written Notice given by the Party requiring the mediation. (c) Terms of Mediation (d) Parties' Representatives I)N4 FOR- ,osia.- onoi 491466>.6B - 17 - The purpose of any mediation that takes place pursuant to Section 14.7(b) shall be to assist the Parties in reaching a voluntary agreement respecting the Dispute. The Parties will, within five (5) Business Days of the selection of the mediator, use commercially reasonable efforts to schedule the mediation date(s). The format and timing of any such mediation shall be as agreed upon by the Parties, acting commercially reasonable, and the mediator, and the costs of the mediator shall be borne equally by the Parties. Each Party will be entitled to invite its legal counsel and no more than three (3) of its employees or other representatives to attend any such mediation sessions. The inclusion of any other persons, other than the mediator, in the mediation sessions, will require the prior written consent of both Parties. (e) Termination of Mediation In the event that any Dispute referred to mediation pursuant to Section 14.7(b) has not been resolved within ten (10) Business Days of the first mediation session of such mediation, or such further period as may be agreed upon by both Parties in writing, the Parties will instruct the mediator to terminate the mediation by giving written notice of termination of the mediation to both Parties. (t) Binding Arbitration In the event that a Dispute has not been resolved by mediation as set out in this Section 14.7, then either Party may, within ten (10) days of the date of the notice of termination sent by the mediator under Section 14.7(e), by giving written Notice of its desire for binding arbitration to the other Party, require that the Dispute be resolved through binding arbitration. If such notice is delivered, the Dispute shall be deterniined by arbitration by a single arbitrator (the "Arbitrator ") to be selected by the Party to whom such notice of binding arbitration is given, and failing such selection, the Arbitrator shall be appointed pursuant to the Arbitration Act, 1991 (Ontario). (g) Terms Arbitration (i) (ii) The laws to be applied in connection with the arbitration shall be the laws of Ontario and the laws of Canada applicable therein, but including its conflict of law rules. (iii) The procedure to be followed for any arbitration that takes place under this Section 14.7 shall be as agreed upon by the Parties or, in the event the Parties are unable to reach agreement, as may be determined by the Arbitrator. (iv) Any arbitration may include any other person substantially involved in a common question of fact or law whose presence is required if complete relief is to be accorded in arbitration, provided that such other person has agreed to be bound by such arbitration. (v ) DM( TOR. '_0 81g5-0O(1?i -49l 4 - 18 - Any arbitration hereunder shall be held at Niagara Falls, Ontario or Toronto, Ontario unless the Parties otherwise agree. The Arbitrator shall have the power to proceed with the arbitration and to deliver his or her award notwithstanding the default by either Party in respect of any procedural order made by the Arbitrator. (vi) The decision of the Arbitrator will be final and binding upon the Parties. DRt TOR20x195-0601'4Q1-1665 6B - 19- (vii) The Arbitrator shall have the authority to assess the costs of the arbitration against either or both of the Parties. (h) Confidentiality All negotiations, mediation and arbitration conducted pursuant to this Section 14.7, and all information and documents (whether in tangible, electronic or digital form) exchanged by the Parties in connection therewith are confidential. Such information and documents shall not be disclosed to any person other than: (i) the Parties, their legal counsel and any of their representatives, consultants and advisors who need to know such information and documents for the purposes of such negotiations, mediation or arbitration; and (ii) the mediator or Arbitrator, except as may be required by Applicable Law or except in the course of any judicial proceeding relating to any arbitration conducted pursuant to the arbitration rules imposed by the Arbitrator. If either Party fails to comply with the provisions of this Section 14.7(h) before or after the completion of any arbitration, the Arbitrator may enjoin further breaches by such Party of this provision and award damages or other relief against such Party. On completion of any negotiations, mediation or arbitration conducted under this Section 14.7, each Party shall return to the other Party all copies of such information or documents, whether in tangible, electronic or digital form. (i) Continuing Performance (i) At all times, notwithstanding the existence of any Dispute, the Parties shall continue to perform their respective obligations in accordance with the provisions of this Agreement without prejudice to the right to contest, dispute and challenge the relevant matter in accordance with the provisions of this Agreement, provided that this Section 14.7(i) shall not apply to a Party where the other Party has repudiated, terminated or abandoned performance of this Agreement or where the first Party asserts claims in fraud or misappropriation. No Party shall exercise any remedy with respect to an alleged default by another Party under this Agreement if a Dispute with respect to such alleged default has been submitted for resolution pursuant to this Article, until either (i) the Parties have settled the Dispute; or (ii) the Arbitrator has made an award with respect to the Dispute. (ii) Subject to the express provisions of this Agreement, where there is any Dispute as to the amount of monies owing hereunder by any Party hereto to any other Party hereto, the portion of the amount owing that is not contested, disputed or challenged, if any, shall be paid when due hereunder, but without prejudice to the rights of the other Party to contest, (j) Survival - 20 - 14.8 Notice dispute or challenge the disposition of the remaining portion of the monies claimed. The provisions of this Section 14.7 shall survive any expiration of the Term or other termination of this Agreement. The provisions of this Section 14.7 shall continue in full force and effect notwithstanding any determination by an arbitrator, a court or the Parties that one or more other provisions of this Agreement are invalid, contrary to law or unenforceable. Any and all notices required to be sent pursuant to the terms of this Lease (each a "Notice ") shall be in writing and shall be sent by mail, or personally delivered, or by overnight courier, or by facsimile or e -mail (each a "Transmission "), to the Parties at their addresses as set out in Schedule B or to any other address that a Party designates. Any Notice (a) sent by mail, shall be deemed to have been received ten (10) Business Days after mailing; (b) delivered personally or sent by overnight courier, shall be deemed to have been given when actually received; (c) sent by a Transmission before 3:00 p.m. (Toronto time) on a Business Day, shall be deemed to have been given on that Business Day, or (d) if sent by a Transmission after 3:00 p.m. (Toronto time) on a Business Day or at any time on a day that is not a Business Day, shall be deemed to have been given on the Business Day after the date of the Transmission. Any Notice given by one Party to the other under this Lease shall be given in writing at the address of the other Party as set forth below or at such other address as may have been furnished in writing for such purpose. 14.9 Counterparts This Lease may be executed in any number of counterparts, each of which shall be deemed to be an original, and all of which together shall be deemed to be one and the same instrument and receipt of a facsimile or portable document format (.pdf) version of an executed signature page of this Lease by a Party shall constitute satisfactory evidence of execution of this Lease by such Party. IN WITNESS WHEREOF, the Parties hereto have executed this Lease on the date first written above. D' 1 l OR, 20, 68 THE CORPORATION OF THE CITY OF NIAGARA FALLS Per: James M. Diodati, Mayor Per: DM IOR 2 -0001• 491466 - 21 - Dean Iorfida, City Clerk I /We have authority to bind the corporation. THE NIAGARA PARKS COMMISSION Per: Fay Booker, General Manager I have authority to bind the corporation. Schedule A VEHICLES nine (9) clean diesel articulated sixty (60) foot buses as per 13:17:51, 2011/08/05, Nova Bus Usine St- Eustache, Quote Number: L685DBK; and two (20) clean diesel articulated forty (40) foot buses as per 13:17:10, 2011/08'05, Nova Bus Usine St- Eustache, Quote Number: L656DBK. t) \ I■ Il u� Lessor The Corporation of the City of Niagara Falls 4310 Queen St. P.O. Box 1023 Niagara Falls, ON 1.2E 6X5 Attention: Tel Number: Fax Number: Email Address: Attention: Tel Number: Fax Number: Email Address: Lessee The Niagara Parks Commission Box 150 7400 Portage Road South Niagara Falls, ON L2G 6T2 Attention: Tel Number: Fax Number: Email Address: Attention: Tel Number: Fax Number: Email Address: General Manager (905) 356 -2241, ext 225 (905) 354-6041 tbooker cuniagaraparks.com Chief Administrative Officer (905) 356 -7521, ext. 5100 (905) 374 -3557 ktoddAniagarafalls.ca Schedule B NOTICE DETAILS Director of Business Development (905) 356 -7521, ext. 5102 (905) 357 9293 sfelicettiainiagarafalls.ca Senior Director, Infrastructure & Guest Services Support (905) 356 -2241, ext 240 (905) 356-7262 mgruossok niagaraparks. com See attached. - 32 - Schedule F VTS BUS STORAGE BAY LICENCE THIS VTS BUS STORAGE SPACE LICENCE made and entered into 25 day of :August, 2011. BETWEE RECITALS: - and - VTS BUS STORAGE SPACE LICENCE THE CORPORATION OF THE CITY OF NIAGARA FALLS ( "Licensor "), THE NIAGARA PARKS COMMISSION ( "Licensee "). WHEREAS Licensee and Licensor entered an agreement on the date hereof pursuant to which Licensee and Licensor weed to, inter alia, establish a visitor transportation system (` ") that results in people having improved convenient transportation to and from certain areas within the Park and the City of Niagara Falls by coordinating bus service operations among and between their respective bus lines through integ and coordinated practices in areas such as scheduling, traffic patterns, bus specifications, branding and operational terms, and by providing the opportunity for passengers to conveniently transfer between such bus lines without additional payment (the "VTS Agreement "): AND WHEREAS Licensor shall enter into an agreement with each of the Government of Canada and the Government of the Province of Ontario pursuant to which each such Government will provide Licensor with Twenty -Five Million Dollars (S25,000,000) (collectively, "Funding') to fund the capital costs of the VTS, subject to certain terms (the "Contribution Agreements "); AND WHEREAS Licensor has agreed to use certain of the Funding to acquire twenty (20) clean diesel articulated sixty (60) foot buses and seven (7) clean diesel forty (40) toot buses (each a "VTS Bus ", and collectively, the "VTS Bus Fleet "), and each such bus will have installed on it intelligent transportation system hardware and software and will be used for the operation of the VTS; AND WHEREAS Licensee and Licensor entered an agreement on the date hereof pursuant to which Licensor agreed to lease to the Licensee eleven (1 1) VTS Buses (the "NPC VTS Buses "): 1.1 Definitions ll�t fOP.2I I''5-0001S 4914- : ii. - :A AND WHEREAS Licensor intends to use certain of the Funding for the design, construction and completion of a VTS bus maintenance and storage facility to be located in the City of Niagara Falls ("VTS Facility AND WHEREAS Licensee wishes to license from Licensor an area for bus storage in the VTS Facility for the purpose of storing the NPC VTS Buses; AND WHEREAS it is the Licensor's intention that the VTS Facility will be sufficiently large enough to accommodate the storage of all VTS Buses in the VTS Bus Fleet in a separate bus storage area in the VTS Facility, the Parties acknowledge that the VTS Facility may not be large enough to accommodate the storage of all of the VTS Buses: AND WHEREAS Licensee wishes to license from Licensor its pro -rata share of the bus storage area in the VTS Facility up to a maximum amount of square footage to accommodate the safe storage of eight (8) of the NPC VTS Buses and Licensor is prepared to license the bus storage area to Licensee on the terms and conditions of this Licence. NOW THEREFORE THIS AGREEMENT WITNESSES THAT in consideration of the rental payments, the mutual covenants and agreements hereinafter contained and other good and valuable consideration (the receipt and sufficiency of which are hereby acknowledged by each of the Parties hereto), the Parties agree as follows: ARTICLE 1 INTERPRETATION In this Licence, unless there is something in the subject matter that is inconsistent therewith. the following terms have the following meanings: "Additional Fees" has the meaning given to such term in Section 3.2: "Alterations" means any repairs, alterations, replacements, decorations, installations or improvements to the Licensed Area; "Applicable Law" means (i) any domestic or foreign statute, law (including the common and civil law and equity), constitution, code, ordinance, rule, regulation, restriction, regulatory policy or guideline having the force of law, by -law (zoning or otherwise) or order, (ii) any consent, exemption, approval or licence of any Governmental Authority, and (iii) any policy, practice or guideline of, or contract with, any Governmental Authority which. although not actually having the force of iaw, is considered by such Governmental Authority as if having the force of law: "Billing Period" means the twelve (12) month period beginning on the first day on which Licensee stores a NPC VTS Bus in the Licensed Area under the terms of this Licence; Dkl 1 ( )R,ux 4c+1-1 - 3 - "Business Day" means Monday through Friday except for any statutory or civic holidays observed in the City of Niagara Falls; "Bus Storage Area" means the area in the VTS Facility to be used exclusively for the storage of the VTS Buses in the VTS Bus Fleet. which such area will be separate from all other areas in the VTS Facility to be used for maintenance, repairs and other activities, and which such area will be clearly identified as a separate bus storage area and will be separately metered for Utilities supplied to or used or consumed in such bus storage area; "Contribution Agreements" has the meaning given to it in the second Recital to this Licence; "Effective Operational Date" means the date upon which Licensor opens the VTS Facility for operations, including the Bus Storage Area in the Licensed .Area being fully constructed and operational, following Licensor obtaining all required building, construction. occupancy and business permits, approvals and licences for the VTS Facility. which date will be evidenced by written correspondence from Licensor to Licensee advising that the VTS Facility is open for operations; "Expert" means any architect, engineer, chartered accountant. quantity surveyor, or other professional consultant. in any case appointed by Licensor and, in the reasonable opinion of Licensor, qualified to perform the function for which he is retained; "Fees" means collectively the Licence Fee and Additional Fees; "Funding" has the meaning given to it in the second Recital to this Licence; "Governmental Authority" means (i) any court, judicial body or arbitral body. (ii) any domestic or foreign government whether multinational, national, federal, provincial, territorial, state, municipal or local and any governmental agency, governmental authority, governmental tribunal or governmental commission of any kind whatever, (iii) any subdivision or authority of any of the foregoing, (iv) any quasi - govemmental or private body exercising any regulatory, expropriation or taxing authority under or for the account of any of the above, (v) any supranational or regional body such as the World Trade Organization, and (vi) any stock exchange; "including" means "including without limitation "; "Licence' means this licence and all attached schedules, as the same may be supplemented, amended, restated or replaced from time to time; "Licensee Default" has the meaning given to it in Section 8.1; "Notice" has the meaning given to it in Section 13.8; DM DA X195.1;oU17 4 -4- "NPC VTS Buses" has the meaning given to it in fourth Recital to this Licence, "Licensed Area" has the meaning given to such term in Section 2.1; "Licence Fee' has the meaning given to such term in Section 4.1; "Mortgage" means any mortgage, charge or security instrument (including a deed of trust or a mortgage securing bonds) and all extensions, modifications and renewals thereof which may now or hereafter affect the VTS Facility or any portion thereof or any greater legally described area of which the VTS Facility forms a part thereof; "Mortgagee" means the mortgagee, chargee, secured party or trustee for bondholders, as the case may be, who from time to time holds a Mortgage: "Operational Term" means the period of time commencing on the Effective Operational Date and ending on the date that is the tenth (10 anniversary of the Operational Date (as such term is defined in the VTS Agreement); "Overhead Costs" means Utilities supplied to or used or consumed in the Bus Storage Area and maintenance and repair costs and expenses for the Bus Storage Area incurred in the ordinary course; "Parties" means, collectively. each of the signatories to this Licence. and "Party" means either of them; "Permitted Use" the Licensed Area shall only be used and occupied for the purpose of accessing and storing the NPC VTS Buses and all repair and maintenance to the NPC VTS Buses as is necessary to place the NPC VTS Buses into, or to take the NPC VTS Buses, out of storage; "Pro Rata Share" means, at any particular time, the ratio of the aggregate number of NPC VTS Buses to the aggregate number of VTS Buses in the VTS Bus Fleet: "Rules and Regulations means the rules and regulations pertaining to the VTS Facility made by Licensor from time to time pursuant to Article 12 hereof; the Rules and Regulations existing as at the Effective Operational Date will be delivered by the Licensor to the Licensee on or before the Effective Operational Date; "Sales Taxes" has the meaning given to it in Section 6.2; "Storage Month" has the meaning given to it in Section 3.2; "Taxes" means all real property taxes, rates, duties and assessments (including local improvement taxes), impost charges or levies, whether general or special, that are levied, rated, charged or assessed against the VTS Facility and the lands 1.3 Construction DM MR 2,1.'7 .;; on which the VTS Facility is built or any part thereof from time to time by any lawful Taxing Authority, whether federal, provincial, municipal, school or otherwise, and any taxes or other amounts which are imposed in lieu of, in substitution for, or in addition to any such real property taxes whether of the foregoing character or not and whether in existence at the commencement of the Term or not, and any such real property taxes levied or assessed against Licensor or the owners of the VTS Facility and the lands on which the VTS Facility is built. on account of its or their interest in the VTS Facility and such lands or any part thereof, or their ownership thereof, as the case may be. "Taxes" shall also include any and all interest penalties or like charges payable as a result of failure to pay all Taxes promptly when due; "Taxing Authority" means the Canada Revenue Agency or any other taxing authority that has responsibility for receiving income tax on behalf of the Government of Canada, the Province of Ontario or any municipality or school board therein: "Term" has the meaning given to it in Section 4.1; "Utilities" means water, sewers, gas, electricity, and other private and public services provided to commercial or industrial buildings in the Citv of Niagara Falls; "VTS" has the meaning given to it in the first Recital to this Licence; "VTS Agreement" has the meaning given to it in the first Recital to this Licence; "NTS Bus" has the meaning given to it in the third Recital to this Licence; "VTS Bus Fleet" has the meaning given to it in the third Recital to this Licence; and "VTS Facility" has the meaning given to it in the fifth Recital to this Licence. 1.2 Binding Effect This Licence shall be binding upon and shall enure to the benefit of the Parties and their respective successors and permitted assigns. (a) Each obligation or agreement of Licensor or Licensee expressed in this Licence, even though not expressed as a covenant. is considered to be a covenant for all purposes. (b) The division of this Licence into Articles and Sections and the insertion of headings are for convenience of reference only and do not affect the construction or interpretation of this Licence. '0-t (c) The terms "hereof', "herein ", "hereby ", "hereunder ", "hereto ", "hereinafter" and similar expressions refer to this Licence and the Schedules and not to any particular Article, Section, Schedule or other portion hereof. Unless something in the subject matter or context is inconsistent therewith, references herein to Articles. Sections and Schedules are to articles and sections of and schedules to this Licence. (d) The provisions of this Licence shall be deemed severable, and the termination, invalidity or unenforceability of any one or more of the provisions hereof shall not affect the validity or enforceability of the other provisions hereof. Words importing the singular number include the plural and vice versa. words importing any `ender include all genders and words importing persons include individuals, corporations, limited and unlimited liability companies, general and limited partnerships, associations, trusts, unincorporated organizations, joint ventures and Governmental Authorities. (e) - 6 - (f) Time is of the essence of this Licence and of every part hereof. (g) No amendment to this Licence will be valid or binding unless set forth in writing and duly executed by both of the Parties. (h) All references to currency herein are to lawful money of Canada. (i) Unless otherwise provided herein, each reference to an enactment is deemed to be a reference to that enactment, and to the regulations made under that enactment, as amended or re- enacted from time to time. Similarly, unless otherwise provided herein, each reference to an ageement is deemed to be a reference to that agreement. as it may be supplemented, amended or restated from time to time. (j) If any action is required to be taken pursuant to this Licence on or by a specified date which is not a Business Day, then such action shall be valid if taken on or by the next succeeding Business Day. (k) The provisions of this Licence shall not affect the rights of the Parties which may subsist from time to time to any other agreements between them dated concurrently with or subsequently to this Licence nor relieve the Parties of any obligations they may have pursuant to such agreements. 1.4 Schedules DM Mk _ ,1 S 1Q!4 The following attached schedules are attached to and form part of this Licence: Schedule A Schedule B Notice Details Licensed Area 1.5 Governing Jurisdiction and Attornment The Parties hereby agree that this Licence and the provisions hereof shall be construed in accordance with the laws of the Province of Ontario and the laws of Canada and the Parties attorn to the jurisdiction of the Courts of the Province of Ontario. 1.6 Entire Agreement "This Licence constitutes the entire agreement and understanding by and between the Parties, except as herein otherwise expressly provided. There are no representations, w arranties, promises, terms, conditions, undertakings or collateral agreements or understanding, written or oral, express or implied between the Parties pertaining to the subject matter hereof other than as expressly set forth in this Licence. 2.1 Licence (a) In consideration of the Licence Fee and Additional Fees, covenants and agreements hereinafter reserved and contained on the part of Licensee to be paid, kept. observed and performed, Licensor hereby agrees to license to Licensee and Licensee hereby agrees to license from Licensor for the use of Licensee, the lesser of: (1) (b) Except as set out herein, the Licensed Area is licensed to Licensee in an "as is, where is" condition. Occupation of the Licensed Area by Licensee shall constitute D1.1 101;2(1N 491472U \ - 7 - ARTICLE 2 LICENCE Licensee's Pro Rata Share of the bus storage space; and (ii) bus storage space equal to the maximum amount of square footage to accommodate the safe storage of eight (8) of the NPC VTS Buses, (such bus storage space shall be large enough to accommodate the length, width and height of the VTS Buses and the ability to safely walk around the NPC VTS Buses to enable inspection of them) in the Bus Storage Area, together with right of access through the VTS Facility from public roads to such bus storage space use area (and such access shall be fully maintained and repaired by the Licensor) (such bus storage space use area being the "Licensed Area ") for the Term. The Parties acknowledge and agree that the specific details of the Licensed Area will not be known in certainty until the completion of the design and construction of the VTS Facility. The Parties hereby undertake to prepare, sign, date and attach to this Licence, on or before the Effective Operational Date, a Schedule B to this Licence setting out a detailed description of the Bus Storage Area and the Licensed Area, and the terms and conditions of this Licence shall be effective in respect of the Licensed Area described in such Schedule B as of the effective date listed on such Schedule B. 3.1 Licence Fee 3.2 Additional Fees [)A FOR.,201Q 1(0 4l4\ -8 an acknowledgement by Licensee that the Licensed Area is in a condition acceptable to Licensee. 2.2 Quiet Enjoyment If the Licensee performs its obligations under this Licence, the Licensee shall be entitled, subject to the terms of this Licence, to quiet enjoyment and use of the Licensed Area without interference by the Licensor or any person claiming through the Licensor. ARTICLE 3 LICENCE FEES For the license of the Licensed Area. Licensee shall pay to Licensor the amount equal to One Dollar (81.00) per year (or part thereof) for each NPC VTS Bus stored in the Licensed Area during such year, during the period commencing on the first day of the month immediately following the Effective Operational Date until the expiration of the Term or earlier termination of this Licence ("Licence Fee Subject to Section 3.3, for each month (or part thereof) in which NPC stores one or more of the NPC VTS Buses in the VTS Facility during the Term (each a "Storage Month "). Licensee shall also pay to Licensor. an additional amount equal to the aggregate of Licensee's pro rata portion of the Overhead Costs allocated to the Licensed Area in accordance with Article 6 (collectively. the "Additional Fees "). For the purposes of this Section. "pro rata portion" means, at any particular time. the ratio of the square footage of the Licensed Area to the square footage of the whole Bus Storage Area. 3.3 Payment of Additional Fees. (a) Prior to the Effective Operational Date for the first Billing Period (or part thereon and prior to the first day of each Billing Period for each Billing Period thereafter, Licensor shall deliver to Licensee a bona fide estimate of the Additional Fees for the applicable Billing Period and, without further notice, Licensee shall pay to Licensor in monthly instalments, in advance, for each Storage Month, one - twelfth (1 :12) of such estimate, during the period commencing on the first day of the month immediately following the Effective Operational Date until the expiration of the Term or earlier termination of this Licence. (b) Licensor shall deliver to Licensee within ninety (90) days after the end of each Billing Period a written statement (the "Statement ") setting out in reasonable detail, the amount of Additional Fees for such Billing Period. if the total of the monthly instalments paid by Licensee in respect of such Additional Fees for the Storage Months in such Billing Period is less than the amount payable by Licensee for the Storage Months in such Billing Period as shown on such Statement, Licensee shall pay the difference to Licensor within forty -five (45) (c) Neither Party may claim a readjustment in respect of Additional Fees for a Billing Period if based upon any error of computation or allocation except by Notice delivered to the other Party within twelve (12) months after the date of delivery of the Statement. 3.4 Invoicing (a) Licensor will render to Licensee an annual Licence Fee invoice for each Billing Period, which will be dated the first of the first month of such Billing Period and payable within thirty (30) days of the invoice date, showing the annual Licence Fees, any applicable Sales Taxes and all other details required for Licensee to claim any available input tax credits. Licensor shall deliver such invoice to Licensee not later than the first day of each Billing Period to which it relates in order to facilitate Licensee processing payment on a timely basis. Licensee shall, thirty (30) days after receipt of each such invoice, pay the total amount shown by cheque or pre - authorized debit, electronic funds transfer or other agreed mode of payment, payable in Canadian funds. Cheques must be mailed or delivered to Licensor at its address shown in Schedule B or to such other address as shall be given to Licensee by Notice from time -to -time by Licensor. [)1] ( q)1' 4 - 9 - days of the date of the Statement. If such total monthly instalments paid is greater than the amount of such Additional Fees payable by Licensee for the Storage Months in such Billing Period. the difference shall be repaid to Licensee with such Statement. All Sales Taxes relating to such adjusted amounts shall be paid or refunded. as applicable. in accordance with Section 6.2. (b) Licensor will render to Licensee a monthly invoice for the Additional Fees, which will be dated the first of the month of the applicable Billing Period and payable within thirty (30) days of the invoice date, showing one - twelfth (1;12) of the estimate of the Additional Fees for the applicable Billing Period, any applicable Sales Taxes and all other details required for Licensee to claim any available input tax credits. Licensor shall deliver such invoice not later than the first day of the month to which it relates in order to facilitate Licensee processing payment on a timely basis. Licensee shall, thirty (30) days after receipt of each such invoice. pay Licensor the total amount shown by cheque or pre - authorized debit, electronic funds transfer or other agreed mode of payment, payable in Canadian funds. Cheques must be mailed or delivered to Licensor at its address shown in Schedule B or to such other address as shall be given to Licensee by Notice from time -to- time by Licensor. 3.5 Late Payment Charge If any Fees is not paid by its due date or if any other amount payable under this Licence by Licensee to Licensor (including interest) is not paid when due, interest shall accrue and be payable on demand on such unpaid amount both before and after judgement, from the due date until paid, at a rate of one percent (1%) per annum (calculated and payable monthly). 3.6 Set -off Licensee shall be entitled to set -off the amount of any Fees or any other amounts payable by Licensee to Licensor hereunder against any amounts payable by Licensor to Licensee, whether under this Licence or otherwise. 4.1 Term of Licence (a) This Licence shall become effective on the date hereof and shall remain in effect until the expiry of the Operational Term, unless earlier terminated as provided herein (the "Term"). (b) Notwithstanding any other provision in this Licence, if the Effective Operational Date does not occur on or before the 30` day of March, 2013 (or such other date as the March 30, 2013 date is extended under the Contribution Agreements), this Licence shall be null and void and of no force and effect. 4.2 Termination (a) Licensor shall have the right to terminate this Licence: (i) (i) I? \I FOR 4914- 2i = ':a - 10 - ARTICLE 4 TERM immediately, in the event of Licensee's bankruptcy or insolvency. or an initiation, voluntary or involuntary (made in good faith), of bankruptcy or insolvency of Licensee. or (ii) on the event of a Licensee Default pursuant to Article 8, and Licensee shall forthwith vacate and surrender the Licensed Area. (h) Licensee shall have the right to terminate this Licence: immediately, in the event of Licensor's bankruptcy or insolvency, or any initiation, voluntary or involuntary (made in good faith), of bankruptcy or insolvency of Licensor; or (ii) at anytime during the Term, by giving Licensor not less than sixty (60) days prior written notice of its intent to terminate this Licence after the first ( 1st) anniversary of the Effective Operational Date, in which case, on the effective termination date set out in such notice, this Licence shall terminate and Licensee shall forthwith vacate and surrender the Licensed Area. 4.3 Obligations and Rights on Expirations or Termination Lpon expiry of the Terre or other termination of this Licence. all rights and obligations of Licensor and Licensee under this Licence shall cease except those which are stated herein to survive termination, and except for the obligation to pay any monies owing at the time of expiration or other termination. 5.1 Permitted Use ARTICLE 5 USE OF LICENSED AREA Licensee will use the Licensed Area solely for the Permitted Use and Licensee will not use or permit. or suffer the use of the Licensed Area or any part thereof for any other business or purpose. 5.2 Signs and Advertising Licensee will not cause or permit any sign. picture, advertisement, notice, lettering or decoration to be painted. affixed or displayed in or on the VTS Facility without, in each instance. the prior written approval of Licensor, acting reasonably. Licensee will erect an identification sign or signs of a type or types approved by Licensor and in a location or locations specified in writing by Licensor. All such signs will remain the property of Licensee and will be maintained by Licensee at its sole cost and expense. At the expiration of the Term or earlier termination of this Licence, Licensee will remove its sign(s) from the Licensed Area and will promptly repair all damage caused by such remoN al. 5.3 Condition and Repair of Licensed Area (a) Licensor shall be responsible for the maintenance and repair of the Licensed Area and shall keep the Licensed Area in good repair and condition. (b) For Neater certainty, Licensee shall not be responsible for: (i) cleaning, maintenance or repair of the Licensed Area. or (ii) any structural repairs or replacements to the Licensed Area or to the VTS Facility except to the extent that such repairs or replacement are required as a result of the acts or omissions of Licensee. (c) In each year of the Term, prior to NPC storing each of the NPC VTS Buses into storage in the first Storage Month of the year, Licensor and Licensee shall together inspect the applicable storage space in the Licensed Area for such NPC VTS Bus and record in writing, what, if any, damage to or repairs are required to such storage space (each an "Opening Damage Record "). Immediately following the removal of such NPC VTS Bus from storage in the immediate next year, Licensor and License shall together inspect the such storage space in the Licensed Area for such NPC VTS Bus and record in writing, what, if any. damage 5.4 Notice b: Licensee. 5.5 Parking 6.1 Taxes Payable by Licensor - 12 - to or repairs are required to such storage space (each a "Closing Damage Record "). Licensor and Licensee shall together compare the applicable Opening Damage Record and the applicable Closing Damage Record for such VPC VTS Bus and if the Closing Damage Record shows damages or repairs in addition to those set out in the Opening Damage Record and such damages and required repairs are a result of an act or omission of Licensee, Licensee shall be responsible for the costs of fixing the damages and making the necessary repairs. (d) Licensee shall not make Alterations to the Licensed Area. Licensee shall promptly notify Licensor of any accident. detect, damage, or deficiency which occurs or exists in any part of the Licensed Area and which comes to the attention of Licensee. Licensee shall be entitled to the non - exclusive right to use up to eight (8) un- reserved parking spaces in the parking lot for the VTS Facility at no charge for use by its staff and agents. ARTICLE 6 TAXES Licensor shall pay all Taxes but it may defer such payments or compliance to the fullest extent permitted by law so long as it pursues any contest or appeal of any such Taxes with reasonable diligence. 6.2 Sales Taxes Except as otherwise specified in this Licence, all amounts payable pursuant to this Licence do not include any sales, use or value -added taxes (collectively, "Sales Taxes "). The Parties agree that they will cooperate to collect. remit, refund, credit. report and pay all applicable Sales Taxes as required by, and in accordance with. the applicable legislation and regulations made thereunder. 7.1 Insurance Licensee. at its own expense, shall at all times during the Term and during such time as Licensee occupies the Licensed Area or any part thereof, obtain and keep effective, the following insurance coverage policies issued by insurers licensed to write business in Ontario: UA1 1 )R Iq; ARTICLE 7 INSURANCE - 13 - (a) "All risks" insurance upon property of every description and kind owned by Licensee. or for which Licensee is legally liable, and which is located in, at or on the Licensed Area (and across the access component described in Section 2.1) including trade fixtures and equipment, furniture, fittings and stock -in -trade in an amount not less than the full replacement cost thereof. (h) Commercial general liability insurance for third party bodily injury including death. personal injury and property damage, legal liability, contractual liability, contingent employer's liability, non -owned automobile liability and owners' and contractors' protective insurance coverage with respect to the Licensed Area (and across the access component described in Section 2.1) and Licensee's use of any part thereof or of any part of the VTS Facility, including the activities, operations and work conducted or performed by Licensee, by any other person on behalf of Licensee, by those for whom Licensee is in law responsible and by any other person on the Licensed Area (including the access component described in Section 2.1; such policy or policies shall be written with inclusive limits of not less than Ten Nlillion Dollars (510,000,000). (c) Each of the foregoing policies of insurance shall. to the extent reasonable and standard for such properties in the marketplace: (i) for the insurance coverage policies set out in Section 7.1(b). name Licensor as an additional insured as its interests may appear so as to protect and indemnify Licensor; (ii) for the insurance coverage policies set out in Section 7.1(b), contain cross - liability and severability of interests provisions as between Licensor and Licensee. including a provision that any breach of a condition of the policy by the insured shall not adversely affect the rights of the other insured to protection under the policy; (iii) for the insurance coverage policies set out in Section 7.1(a), contain a waiver in favour of Licensor of any breach of warranty clause to the effect that such insurance policy shall not be invalidated in respect of Licensor's interests by reason of any breach or violation of any warranties, representations, declarations or conditions contained in such policy: (iv) contain a clause stating that such insurance policy will be considered as primary insurance and shall not call into contribution any other insurance that may be available to Licensor; and (v) contain an undertaking by the insurer to notify Licensor in writing not less than thirty (30) days prior to any cancellation, non - renewal or termination thereof. (d) Licensee shall deliver to Licensor certificates of such insurance or, if requested by Licensor, a certified copy of each such policy of insurance prior to the Effective av14 - 2l 1 ' \ Operational Date and renewal certificates at least thirty (30) days prior to the renewal date annually. 7.2 Licensee's Failure to Ensure 7.3 Indemnification of Licensor - 14 - If Licensee fails to take out or to keep in force any such insurance referred to in Section 7.1 and should Licensee not rectify the situation within forty -eight (48) hours after written notice thereof Licensor may, but shall not be obligated to, effect such insurance and Licensee shall pay to Licensor forthwith on demand all premiums, costs, charges and expenses incurred by Licensor in effecting such insurance. Except if and to the extent Licensee is released from liability to Licensor pursuant to the provisions of Section 7.7 and subject to the provisions of Section 7.8, notwithstanding any other terms, covenants and conditions contained in this Licence, Licensee shall indemnify Licensor and save it harmless from and against any and all loss (including loss of Fees payable by Licensee pursuant to this Licence), claims. actions, damages, liability and expenses in connection with loss of life, personal injury, damage to property or any other loss or injury whatsoever arising from or out of or related to this Licence, or any occurrence in, upon or at the Licensed Area or the occupancy or use by Licensee of the Licensed Area or any part thereof. or occasioned wholly or in part by any act or omission of Licensee or by anyone permitted to be on the Licensed Area by Licensee whether on the Licensed Area or elsewhere in the VTS Facility. If Licensor shall. without fault on its part, be made a party to any litigation commenced by or against Licensee. then Licensee shall protect, indemnify and hold Licensor harmless and shall pay all costs, expenses and reasonable legal fees incurred or paid by Licensor in connection with such litigation. Licensee shall also pay all costs, expenses and legal fees that may be incurred or paid by Licensor in enforcing the terms, covenants and conditions in this Licence, unless a court shall decide otherwise. Notwithstanding the foregoing in this Section 7.3, the Parties acknowledge that Licensee's indemnification obligations hereunder are subject to Applicable Laws, including the limitation placed on Licensee's ability to grant an indemnity under the Financial Administration Act (Ontario). 7.4 Licensor's Insurance Licensor, at its own expense, shall at all times during the Term and during such time as Licensee occupies the Licensed Area or any part thereof, obtain and keep effective the following insurance coverage policies issued by insurers licensed to write business in Ontario: (a) "All risks" insurance on the VTS Facility (excluding any property which Licensee and other tenants or Licensees are obliged to insure pursuant to Section 7.1 or similar provisions in their respective licensees) in such reasonable amounts and with such reasonable deductions as would be carried by a prudent owner of reasonably similar facilitv. (h) Commercial general liability insurance including third party bodily injury including death, personal injury and property damage. and legal liability with respect to Licensor's operations in the VTS Facility in such reasonable amounts I)Nj EOR.= ijv1Q:_i)ii01`? 4' 1 (c) Each of the foregoing policies of insurance shall. to the extent reasonable and standard for such properties in the marketplace: (i) for the insurance coverage policies set out in Section 7.4(b), name Licensee as an additional insured as its interests may appear so as to protect and indemnify Licensee; o\i_1(fFe .3914 ?0':A - 15 - and with such reasonable deductions as would be carried by a prudent owner of reasonably similar facility. (ii) for the insurance coverage policies set out in Section 7.4(b). contain cross - liability and severability of interests provisions as between Licensor and Licensee, including a provision that any breach of a condition of the policy by the insured shall not adversely affect the rights of the other insured to protection under the policy; (iii) for the insurance coverage policies set out in Section 7.4(a), contain a waiver in favour of Licensee of any breach of warranty clause to the effect that such insurance policy shall not be invalidated in respect of Licensee's interests by reason of any breach or violation of any warranties, representations, declarations or conditions contained in such policy; (iv) contain a clause stating that such insurance policy will be considered as primary insurance and shall not call into contribution any other insurance that may be available to Licensee; and (v) contain an undertaking by the insurer to notify Licensee in writing not less than thirty (30) days prior to any material change. cancellation. non - renewal or termination thereof. (d) Licensor shall deliver to Licensee certificates of such insurance or, if requested by Licensee. a certified copy of each such policy of insurance prior to the Effective Operational Date and renewal certificates at least thirty (30) days prior to the renewal date annually. 7.5 Licensor's Failure to Insure If Licensor fails to take out or to keep in force any such insurance referred to in Section 7.4, and should Licensor not rectify the situation within forty -eight (48) hours after written notice thereof. Licensee may, but shall not be obligated to, effect such insurance and Licensor shall pay to Licensee forthwith on demand all premiums, costs, charges and expenses incurred by Licensee in effecting such insurance. 7.6 Indemnification of Licensee Except if and to the extent Licensor is released from liability to Licensee pursuant to Section 7.7 and subject to the provisions of Section 7.8, notwithstanding any other terms, covenants and conditions contained in this Licence, Licensor shall indemnify Licensee and save - 16- it harmless from and against any and all loss, claims, actions, damages. liability and expenses in connection with loss of life, personal injury, damage to property or any other loss or injury whatsoever arising from or out of the negligent or wilful act or omission of Licensor. its officers, employees. agents or contractors as they relate to this Licence. or any occurrence in, upon or at the Licensed Area or any part thereof. 7.7 Waiver of Recover Neither Licensor nor Licensee shall be liable to the other or to any insurance company insuring the other Party (by way of subrogation or otherwise) for any loss or damage to any structure. building, or other tangible property, or any resulting loss of income, even though such damage or loss might have been occasioned by the negligence of Licensor or Licensee or any of officers, directors. employees or agents. if any such loss or damage is covered by insurance benefiting the party suffering such loss or damage or was required of such Party to be covered by insurance pursuant to this Licence. 7.8 Limitations of Liability Neither Party will be liable to the other or any other indemnified party hereunder, whether as a result of breach of contract, indemnity, warranty, condition. tort (including negligence). strict or absolute civil liability or otherwise for any indirect, punitive, incidental, exemplary, special or consequential damages, in connection with their respective obligations under this Licence except (a) as a result of third party claims; and (b) in respect of intentional wilful or fraudulent misconducts on the part of the Party seeking to enforce such limitations. 8.1 Default ARTICLE 8 DEFAULT If Licensee fails to pay when due any Fees or other amount payable under this Licence, or fails to perform or observe any of its other obligations under this Licence, and such failure continues for a period of fifteen (15) days after written notice by Licensor to Licensee to cure such failure (a "Licensee Default "). Licensor may declare Licensee to be in default under this Licence. 8? Rights on Default (a) Upon declaration by Licensor that Licensee is in default under this Licence, and notwithstanding any other provision of this Licence, and, subject always to all Applicable Laws, Licensor shall have the following remedies: (i) Licensor may terminate this Licence by written notice to Licensee that this Licence is terminated due to a Licensee Default, (ii) collect all moneys from Licensee due to Licensor hereunder as at the date of such termination, and (iii) collect all moneys U\1 rilR =[iv I v5_, I Y 4U 14"_( \ -17- from Licensee that would have been paid to Licensor on account of Licence Fees only for the Term if this Licence had not been terminated early. (b) The tbregoing rights and remedies are cumulative and not alternative. are in addition to and not in substitution for any and all other rights and remedies otherwise available to Licensor including. tivithout limitation, its right of set -off, and may be exercised separately or together, whether before or after any termination of this Licence. Licensor may refrain from exercising any one or more of its rights or remedies without incurring any liability to Licensee and the exercise of any right or remedy shall not preclude its further exercise. 9.1 Possession ARTICLE 9 SURRENDER Upon the expiration of the Tenn or other termination of this Licence. Licensee shall immediately quit and surrender possession of the Licensed Area. Upon such surrender, all right. title and interest of Licensee in the Licensed Area shall cease. 9.2 Payments after Termination No payments of money by Licensee to Licensor after the expiration of the Term or other termination of this Licence or after the giving of any notice (other than a demand for payment of money) by Licensor to Licensee. shall reinstate, continue or extend the Term or make ineffective any notice given to Licensee prior to the payment of such money. After the service of notice or the commencement of a suit, or after final judgment granting Licensor possession of the Licensed Area, Licensor may receive and collect any sums of Fees due under this Licence and the payment thereof shall not make ineffective any notice or in any manner aftect any pending suit or any judgment theretofore obtained. 10.1 Observance Licensee shall at all times comply with, and shall cause its employees, agents, licensees and invitees to comply with, the Rules and Regulations from time to time in effect. 10.2 Modifications DNI ruk io<_„.),i ARTICLE 10 RULES AND REGULATIONS Licensor may from time to time, amend, delete from, or add to the Rules and Regulations, provided that any such modification shall be bona fide, reasonable and shall be effective only upon delivery of a copy thereof to Licensee at its address set out in Schedule A. - 18 - ARTICLE 11 DAMAGE BY FIRE OR OTHER CASUALTY' 11.1 Limited Damage to Licensed Area If all or part of the Licensed Area is rendered unleaseable by damage from any cause for cvhich Licensor is insured and. in the reasonable opinion of the Expert. can be substantially repaired under Applicable Laws within one hundred and eighty (180) days from the date of such damage (employing normal construction methods vwithout overtime or other premium). Licensor shall forthwith at its own expense repair such damage. 11.2 Major Damage to Licensed Area If all or part of the Bus Storage Area. including the Licensed Area. are rendered unleaseable by damage from any cause for which Licensor is insured and, m the reasonable opinion of the Expert, cannot be substantially repaired under Applicable Laws vvithin one hundred and eighty (180) days from the date of such damage (employing normal construction methods without overtime or other premium), then either Licensor or Licensee may elect to terminate this Licence as of the date of such damage by written Notice delivered to the other not more than thirty (30) days after receipt of such Expert's opinion, failing which Licensor shall forthwith at its ov.n expense repair. 11.3 Abatement There shall be no abatement or reduction of Fees where Licensor "s repairs to the Bus Storage Area. including the Licensed Area, take less than ten (10) days to complete after the damage occurs. If Licensor's repairs take ten (10) or more days to complete. then the Fees payable under Article 3 shall be proportionately reduced in the proportion that the area of the part of the Licensed Area thereby rendered unfit for use by Licensee in the storage of the NPC \'TS Buses and not in fact so used bears to the area of the Licensed Area from the date of such damage until the earlier of: (a) thirty (30) days or such lesser period of time as may be reasonable after substantial completion by Licensor of its necessary repairs to the Bus Storage Area, including the Licensed Area, (or the part thereof rendered unfit for use) during which period of time Licensee shall with reasonable diligence make such repairs as are necessary for Licensee to again use the Bus Storage Area. including the Licensed Area, (or the relevant part thereof) in its business; and (b) the day on which Licensee again uses the Licensed Area for the relevant part thereof) for the storage of the NPC VTS Buses (with abatement continuing as aforesaid in respect of the parts remaining unfit for use and not actually used). Notwithstanding anything contained herein, Fees payable by Licensee hereunder shall not be abated if the damage is caused by any act or omission of Licensee. its agents, servants or employees. UA1 T OR ^, n niii 1 1.4 Certificate of Expert The certificate of the Expert shall be binding upon Licensor and Licensee as to whether or not the Bus Storage Area, including the Licensed Area, are unleaseable or unfit for use, the percentage of the Licensed Area, rendered unfit for use, the date upon which the Bus Storage Area. including the Licensed Area, or relevant part thereof became unfit for use and the state of completion of any work or repair of either Licensor or Licensee. 11.5 Licensor's Rights on Rebuilding In repairing or rebuilding the Bus Storage Area. including Licensed Area, Licensor may use drawings. designs, plans and specification other than those used in the original construction and may alter the Bus Storage Area, including the Licensed Area, provided that the Bus Storage Area, including the Licensed Area as altered shall have substantially the same attributes as the original Bus Storage Area, including the Licensed Area. 12.1 Sale, Conveyance and Assignment Nothing in this Licence shall restrict the right of Licensor to sell, convey, assign or otherwise deal with the Licensed Area or any part thereof (or both), subject to the rights of Licensee under this Licence and this Licence shall not be affected by any such sale, conveyance or assignment, and Licensee shall attorn to Licensor's successor in interest thereunder and such successor shall assume the Licensor's obligations hereunder. Any such sale, conveyance or assignment shall operate to release Licensor from liability from and after the effective date thereof for all of the covenants, terms and conditions of this Licence. express or implied, except as such may relate to the period prior to such effective date, and Licensee shall thereafter look solely to Licensor's successor in interest in and to this Licence in respect of events occurring from and after the effective date. 12.2 Subordination and Attornment This Licence and the rights of Licensee hereunder shall be subject and subordinate to all existing and future Mortgages and to all renewals, modifications, consolidations, replacements and extensions thereof. Whenever requested by Licensor or a Mortgagee. Licensee shall. within ten (10) days after such request, enter into an agreement with the Mortgagee whereby Licensee postpones or subordinates this Licence to the interest of any stipulated Mortgagee and agrees that whenever requested by such Mortgagee it shall attorn to and become Licensee of such Mortgagee, or of any purchaser from such Mortgagee in the event of the exercise by the Mortgagee of its power of sale, for the then unexpired residue of the Term upon all the terms and conditions of this Licence, provided that it receives, for each future Mortgage, the non - disturbance agreement referred to in Section 12.3. 1311 1(rk 4914 "0 '.1 - 19 - ARTICLE 12 TRANSFERS BY LICENSOR 17,3 Non- Disturbance Agreement Upon the written request and at the sole expense of Licensee. Licensor shall use reasonable efforts to obtain written assurances from any 'Mortgagee with an interest in the Licensed Area prior to that of Licensee to the effect that so long as Licensee is not in default under this Licence such Mortgagee will recognize Licensee's rights under this Licence and not disturb Licensee's occupancy of the Licensed Area. 12.4 Non- Assignment Neither this Licence nor any interest herein may be assigned by Licensee without the prior written consent of Licensor. Any subleasing or sublicensing of the Licensed Area is prohibited. 13.1 \% aiver - ARTICLE 13 GENERAL AND MISCELLANEOUS Save as expressly set out herein, no waiver of any provision of this Licence shall be binding unless it is in writing. No indulgence or forbearance by a Party shall constitute a waiver of such Party's right to insist on performance in full and in a timely manner of all covenants in this Licence. Waiver of any provision shall not be deemed to be a waiver of the same provision thereafter or any other provision of this Licence at any time. 13.2 Licensee Governing Legislation and Code of Conduct (a) Licensee is a Provincial Crown Agency and a corporation incorporated by an Act of the Provincial Legislature of Ontario on the 23rd of April 1887 and continued under the Niagara Parks Act, R.S.O. 1990, Chapter N.3. Licensor has read and is familiar with such Act and the statutory jurisdiction of Licensee to control activities in the Park through such Act and R.R.O. 1990, Regulation 829 (collectively, "NPC Legislation including the conduct of persons using the Park, permissions, advertising and signage, licences, traffic rules and the control of transportation in the Park. Licensor will cause each of its current and future directors, officers, employees and members to adhere to the NPC Legislation and any written directives from Licensee to ensure compliance with NPC Legislation and hereby assumes all responsibility for any failure to comply with the terms of this Section. (b) Licensor has read and is familiar with Licensee's Code of Conduct located at www. niagaraparks .comtfilesfCode- of- Conduct.pdf and hereby agrees to adhere to the principles and all provisions of such Code of Conduct applicable to Licensor. Licensor will cause each of its current and future directors, officers, employees and members to read and adhere to such Code of Conduct and hereby assumes all responsibility for any failure to comply with the terms of such Code of Conduct on the part of Licensor and such persons. 4 13.3 Further Acts The Parties shall do or cause to be done all such further acts and things as may be reasonably necessary or desirable to give full effect to this Licence. Without limiting the foregoing, each of the Parties will at any time and from time to time execute and deliver or cause to be executed and delivered such further instruments and such further actions as may be reasonably requested by the other Party to cure any defect in the execution or delivery of this Licence or to give effect to the provisions of this Licence. 13.4 Freedom of Information The Parties acknowledge that the terms of this Licence are subject to the Municipal Freedom of Information and Protection of Privacv Act (Ontario) and the Freedom of Information and Protection of Privacy Act (Ontario). 13.5 Remedies -2 1 - No remedy herein conferred upon or reserved in favour of a Party shall exclude any other remedy herein or existing at law or in equity, but each shall be cumulative and in addition to every other remedy given hereunder or now or hereafter existing. 13.6 Support of Licence Each of the Parties agree that they shall publicly support this Licence and the VTS in any statements, reports or communications such Party makes to the public. In addition. any press releases of either or both Parties in connection with or relating to this Licence andor the VTS in any way shall be jointly agreed to in writing prior to its release. 13.7 Dispute Resolution (a) Resolution by Negotiations If any dispute arises between the CCNF and the NPC as to whether a Party has complied with its obligations under this Agreement or if any dispute or controversy arises between the Parties with respect to the interpretation or implementation of any of the provisions of this Agreement (any and all disputes and controversies described in this Article are hereinafter collectively referred to as a "Dispute" or "Disputes "). a Notice of a Dispute by a Party must be delivered to the other Party. The Parties shall make all reasonable efforts to resolve any and all Disputes by amicable negotiations within thirty (30) days of a Notice of a Dispute being delivered (the "Negotiation Period "), including meeting at mutually acceptable times and places as often as they consider necessary, and providing each other. on a without prejudice basis, full, frank, candid and timely disclosure of relevant facts, information and documents in order to facilitate such negotiations. provided that in so doing the Parties are bound to comply with all Applicable Laws respecting such disclosure. If either of the Parties refuses or neglects to participate in such amicable negotiations, the other Party may refer the Dispute immediately to mediation under Section 13.7(b). No Party shall be required to participate in the negotiations specified by this Section 13.7(a) if a limitation period relating to a right of DRl f�iR 2(} 4 ,414' ^_t;'.3 such Party which is the subject matter of or is related to the Dispute, would expire during the Negotiation Period or within ten (10) days thereafter. (b) Notice to 'Mediate If a Dispute remains unresolved after the Negotiation Period, either Party may, upon ten (1 0) days prior written Notice to the other Party, require that the Dispute be referred to a mediator for mandatory mediation. The mediator shall be selected by the Party to whom the Notice is given under this Section 13_7(b) within five (5) Business Days of such Party's receipt of such notice. from a list of three (3) mediators identified in the written Notice given by the Party requiring the mediation. (c) Terms of Mediation The purpose of any mediation that takes place pursuant to Section 13.7(b) shall be to assist the Parties in reaching a voluntary agreement respecting the Dispute. The Parties will. within five (5) Business Days of the selection of the mediator. use commercially reasonable efforts to schedule the mediation date(s). The format and timing of any such mediation shall be as agreed upon by the Parties, acting commercially reasonable. and the mediator, and the costs of the mediator shall be borne equally by the Parties. (d) Parties` Representatives Each Party will be entitled to invite its legal counsel and no more than three (3) of its employees or other representatives to attend any such mediation sessions. The inclusion of any other persons, other than the mediator, in the mediation sessions, will require the prior written consent of both Parties. (e) Termination of Mediation In the event that any Dispute referred to mediation pursuant to Section 13.7(b) has not been resolved within ten (1 0) Business Days of the first mediation session of such mediation. or such further period as may be agreed upon by both Parties in writing, the Parties will instruct the mediator to terminate the mediation by giving written notice of termination of the mediation to both Parties. (f) Binding Arbitration In the event that a Dispute has not been resolved by mediation as set out in this Section 13.7, then either Party may, within ten (10) days of the date of the notice of termination sent by the mediator under Section 13.7(e), by giving written Notice of its desire for binding arbitration to the other Party, require that the Dispute be resolved through binding arbitration. If such notice is delivered. the Dispute shall be determined by arbitration by a single arbitrator (the "Arbitrator ") to be selected by the Party to whom such notice of binding arbitration is given, and failing such selection, the Arbitrator shall be appointed pursuant to the Arbitration Act, 1991 (Ontario). (g) Terms Arbitration DAi f t l fZ 1'I }- 211 -:A 0 %1 Ir1R_'.i i`;`_i:0". 4 -% -23- (1) Any arbitration hereunder shall be held at Niagara Falls, Ontario or Toronto, Ontario unless the Parties otherwise agree. (ii) The laws to be applied in connection with the arbitration shall be the laws of Ontario and the laws of Canada applicable therein. but including its conflict of law rules. (iii) The procedure to be followed for any arbitration that takes place under this Section 13.7 shall be as agreed upon by the Parties or, in the event the Parties are unable to reach agreement, as may be determined by the Arbitrator. (i v) (v) (1) Any arbitration may include any other person substantially involved in a common question of fact or law whose presence is required if complete relief is to be accorded in arbitration, provided that such other person has agreed to be bound by such arbitration. The Arbitrator shall have the power to proceed with the arbitration and to deliver his or her award notwithstanding the default by either Party in respect of any procedural order made by the Arbitrator. (vi) The decision of the Arbitrator kvill be final and binding upon the Parties. (vii) The Arbitrator shall have the authority to assess the costs of the arbitration against either or both of the Parties. (h) Confidentiality All negotiations, mediation and arbitration conducted pursuant to this Section 13.7. and all information and documents (whether in tangible, electronic or digital form) exchanged by the Parties in connection therewith are confidential. Such information and documents shall not be disclosed to any person other than: the Parties, their legal counsel and any of their representatives, consultants and advisors who need to know such information and documents for the purposes of such negotiations, mediation or arbitration: and (11) the mediator or Arbitrator, except as may be required by Applicable Law or except in the course of any judicial proceeding relating to any arbitration conducted pursuant to the arbitration rules imposed by the Arbitrator. If either Party fails to comply with the provisions of this Section 13.7(h) before or aver the completion of any arbitration, the Arbitrator may enjoin further breaches by such Party of this provision and award damages or other relief against such Party. On completion of any negotiations, mediation or arbitration conducted under this Section 13.7. each Party shall return to the other Party all copies of such information or documents, whether in tangible, electronic or digital form. (i) Surviv The provisions of this Section 13.7 shall survive any expiration of the Term or other termination of this Agreement. The provisions of this Section 13.7 shall continue in full force and effect notwithstanding any determination by an arbitrator, a court or the Parties that one or more other provisions of this Agreement are invalid, contrary to law or unenforceable. 13.8 Notice - 24 - Continuing Performance (1) At all times, notwithstanding the existence of any Dispute, the Parties shall continue to perform their respective obligations in accordance with the provisions of this Agreement without prejudice to the right to contest, dispute and challenge the relevant matter in accordance with the provisions of this Agreement, provided that this Section 13.7(i) shall not apply to a Party where the other Party has repudiated, terminated or abandoned performance of this Agreement or where the first Party asserts claims in fraud or misappropriation. No Party shall exercise any remedy with respect to an alleged default by another Party under this :agreement if a Dispute with respect to such alleged default has been submitted for resolution pursuant to this Article, until either (i) the Parties have settled the Dispute; or (ii) the Arbitrator has made an award with respect to the Dispute. Ln Subject to the express provisions of this Agreement, where there is any Dispute as to the amount of monies owing hereunder by any Party hereto to any other Party hereto, the portion of the amount owing that is not contested, disputed or challenged, if anv, shall be paid when due hereunder, but without prejudice to the rights of the other Party to contest, dispute or challenge the disposition of the remaining portion of the monies claimed. Any and all notices required to be sent pursuant to the terms of this Licence (each a "Notice ") shall be in writing and shall be sent by mail, or personally delivered, or by overnight courier, or by facsimile or e -mail (each a "Transmission to the Parties at their addresses as set out in Schedule A or to any other address that a Party designates. Any Notice (a) sent by mail, shall be deemed to have been received ten (10) Business Days after mailing; (b) delivered personally or sent by overnight courier, shall be deemed to have been given when actually received: (c) sent by a Transmission before 3:00 p.m. (Toronto time) on a Business Day, shall be deemed to have been given on that Business Day, or (d) if sent by a Transmission after 3:00 p.m. (Toronto time) on a Business Day or at any time on a day that is not a Business Day, shall be deemed to have been given on the Business Day after the date of the Transmission. Any Notice given by one Party to the other under this Licence shall be given in writing at the address of the other Party as set forth below or at such other address as may have been furnished in writing for such purpose. I)11 rc■R .!"_u' A 13.9 Counterparts This Licence may be executed in any number of counterparts, each of which shall be deemed to be an original. and all of which together shall be deemed to be one and the same instrument and receipt of a facsimile or portable document format (pdf) version of an executed signature page of this Licence by a Party shall constitute satisfactory evidence of execution of this Licence by such Party. IN NVITNESS WHEREOF, the Parties hereto have executed this Licence on the date first written above. DAI Fi)fZ 4u14 -2 _25_ THE CORPORATION OF THE CITY OF NIAGARA FALLS Per: James M. Diodati, Mayor Per: Dean Iorfida, City Clerk II We have authority to bind the corporation. THE NIAGARA PARKS COMMISSION Per: Fay Booker, General Manager I have authority to bind the corporation. Schedule B LICENSED %ARE:A To be completed in accordance with Section 2.1. Licensor The Corporation of the City of Niagara Falls 4310 Queen St. P.O. Box l'323 Niagara Falls, ON L2E 6X5 Attention: Tel Number: Fax Number: Email Address: Attention: Tel Number: Fax Number: Email Address: Licensee The Niagara Parks Commission Box 150 7400 Portaue Road South Niagara Falls, ON L2G 6T2 Attention: Tel Number: Fax Number: Email Address: Attention: Tel Number: Fax Number: Email Address: Chief Administrative Officer (9115) 356 -7521, ext. 5100 (905) 357 9293 ktodd! L niauarafalls.ca Schedule A NOTICE DETAILS Director of Business Development (905) 356 -7521, ext. 5102 (905) 3i7 9293 sfel icetti!�i niagarafal ls.ca General Manager (905) 356 -2241, ext 225 (905) 354 -6041 (booker @niagaraparks.com Senior Director. Infrastructure & Guest Services Support (905) 356 -2241. ext 240 (905) 356 -7262 mgruosso4 niagaraparks.com See attached. _13_ Schedule G PAYMENT SCHEDULE OF ANNUAL GRANTS CCNF The Corporation of the City of Niagara Falls 4310 Queen St. P.O. Box 1023 Nia2ara Falls. ON L2E 6X5 Attention: Tel Number: Fax Number: Email Address: Attention: Tel Number: Fax Number: Email Address: N PC The Niagara Parks Commission Box 150 7400 Portage Road South Niagara Falls, ON L2G 6T2 Attention: Tel Number: Fax Number: Email Address: Attention: Tel Number: Fax Number: Email Address: Chief Administrative Officer (905) 356-7521. ext. 5100 (905) 374 -3557 ktoddsaniagarafalls.ca -31 - Schedule 11 NOTICE DETAILS Director of Business Development (905) 356 -7521. ext 5102 (905) 357 -9293 sfelicetti( iniagarafalls.ca General Manager (905) 356 -2241, ext 225 (905) 354-6041 tbooker6i niagaraparks.com Senior Director, Infrastructure and Guest Support Services (905) 356 -2241, ext 240 (905) 356-7262 mgruosso(L niagaraparks.corn CITY OF NIAGARA FALLS By -law No. 2011 - A by -law to designate Block 119, Registered Plan 59M -379. not be subject to part-lot control. WHEREAS subsection 50(7) of the Planning Act, R.S.O. 1990, provides, in part, that the council of a local municipality may by by -law designate lands that would otherwise be subject to part-lot control, not be subject to such part-lot control; AND WHEREAS such by -laws are required under subsection 50(7.1) of the Planning Act to be approved by the appropriate approval authority, that being The Regional Municipality of Niagara as per subsection 51(5) of the Planning Act, subsequently delegated to the City' of Niagara Falls by Regional Municipality of Niagara By -law No. 8819 -97; AND WHEREAS the said land is zoned by By -law No. 2008 -99 to permit the erection of on- street townhouse dwellings thereon; AND WHEREAS the owner of the said lands proposes to create property lines between the on- street townhouse dwelling units in order to permit each unit to be sold separately; AND WHEREAS the Council of The Corporation of the City of Niagara Falls deems it expedient to designate that the said land not be subject to part-lot control. THE COUNCIL OF THE CORPORATION OF THE CITY OF NIAGARA FALLS ENACTS AS FOLLOWS: 1. That subsection 50(5) of the Planning Act, R.S.O. 1990, not apply to Block 119, Registered Plan 59M -379, described as Parts 1 to 6 (inclusive) on Reference Plan 59R- 14499, in the City of Niagara Falls, in the Regional Municipality of Niagara. 2. This by -law shall remain in full force and effect for two years from the date of passage of this by -law, after which time this by -law shall expire and be deemed to be repealed and of no effect. Passed this twenty -fifth day of August, 2011. DEAN IORFIDA, CITY CLERK JAMES M. DIODATI, MAYOR First Reading: Second Reading: Third Reading: August 25, 2011 August 25, 2011 August 25, 2011 S \PAR I L01 CONTROL\201 1 \PLC -001 \Block 119 PLC By- law .wpd CITY OF NIAGARA FALLS By -law No. 2011 - A by -law to designate the whole of the City of Niagara Falls as a site plan control area, to define the classes of development that may be undertaken without the approval of plans and drawings, and to delegate to an appointed officer of the municipality the powers or authority of council permitted under section 41 of the Planning Act, R.S.O. 1990, c.P.13. WHEREAS the Official Plan of the City of Niagara Falls states that the whole of the area of the City of Niagara Falls shall be a site plan control area; AND WHEREAS the Council of the Corporation of the City of Niagara Falls deems it desirable to designate the whole of the area of the City of Niagara Falls as a site plan control area as established by the Official Plan of the Regional Municipality of Niagara and the City of Niagara Falls, pursuant to section 41 of the Planning Act, R.S.O. 1990, c.P.13; AND WHEREAS the Council of the Corporation of the City of Niagara Falls deems it desirable to define certain class or classes of development that may be undertaken in the site plan control area without the approval of plans and drawings otherwise required under subsections 41(4) or 41(5) of the Planning Act, R.S.O. 1990, c.P. 13 pursuant to clause 41(13)(a) of the said Act; AND WHEREAS the Council of the Corporation of the City of Niagara Falls deems it desirable to streamline and expedite the approval of plans and drawings; AND WHEREAS clause 41(13)(b) of the Planning Act, R.S.O. 1990, c.P.13 states that the council may by by -law delegate to either a committee of the council or to an appointed officer of the municipality identified in the by -law either by name or position occupied, any of the council's powers and authority under section 41 of the said Act, except the authority to define any class or classes of development as mentioned in clause 41(13)(a) of the said Act; AND WHEREAS the Council of The Corporation of the City of Niagara Falls deems it desirable to delegate its powers and authority under section 41 of the Planning Act, R.S.O. 1990, c.P.13 to the Director of Planning, Building and Development or his or her designate, when the Director of Planning, Building and Development is unable to conduct his or her duties pursuant to this by -law through illness or otherwise. NOW THEREFORE THE COUNCIL OF THE CORPORATION OF THE CITY OF NIAGARA FALLS ENACTS AS FOLLOWS: 1. In this by -law, "development" means the construction, erection, or placing of one or more buildings or structures on land or the making of an addition or alteration to a building or structure that has the effect of substantially increasing the size or usability thereof, or the laying out and establishment of a commercial parking lot or of sites for the location of three or more trailers as defined in subsection 164 (4) of the Municipal Act or of sites for the location of three or more mobile homes as defined in subsection 46(1) of the Planning Act or of sites for the (d) (g) - 2 - location of three or more community homes as defined in subsection 46(1) of the Planning Act, but does not include the placement of a portable classroom on a school site of a district school board if the school site was in existence on January 1, 2007. 2. All the lands lying within the limits of the City of Niagara Falls are hereby designated as a site plan control area. 3. The class or classes of development that may be undertaken in the site plan control area without the approval of plans and drawings otherwise required under subsections 41(4) or 41(5) of the Planning Act, R.S.O., 1990, c.P.13 are hereby defined as follows: (a) Any residential development that is proceeding by plan of vacant land condominium and any residential building containing less than three dwelling units, and buildings and structures accessory thereto. (b) An addition or alteration to a building or structure mentioned in clause (a) above. (c) Any building or structure located on a parcel of land owned and operated by the City of Niagara Falls, the Niagara Peninsula Conservation Authority, the Government of Ontario, or any Authority, Board or Ministry of the Province of Ontario or the Government of Canada. Any structure erected for the purposes of flood or erosion control by the Niagara Peninsula Conservation Authority. (e) Any building or structure permitted under the OS 6 zone. (f) Any agricultural building or structure, save and except for greenhouses greater than 2000 square metres. Any building or structure permitted as part of any extractive industrial use licensed under the Aggregate Resources Act, R.S.O. 1990, c.A.8. 4. Notwithstanding any clause contained in paragraph 3 above, the Council of the Corporation of the City of Niagara Falls may impose, as condition of a zoning by -law amendment, site plan control on any use otherwise exempt from site plan control, without amendment to this by -law. 5. Notwithstanding any clause contained in paragraph 3 above, the Committee of Adjustment may impose, as condition of a minor variance or a consent, site plan control on any use otherwise exempt from site plan control, without amendment to this by -law. 6. Notwithstanding any of the provisions of section 3 of this by -law, the approval by Council of the plans and drawings referred to in subsections 4 and 5 of Section 41 of the Planning Act, R.S.O. 1990, c.P.13 shall be required for any non farm residential development on the lands located within Special Policy Area "37" in the City's Official Plan. - 3 - 7. All applications submitted to the Corporation of the City of Niagara Falls shall conform to the policies within the Site Plan Control Policy. 8. The Corporation of the City of Niagara Falls may regulate, through site plan control, matters relating to exterior design, including without limitation, the character, scale, appearance and design features of buildings and their sustainable design in accordance with Official Plan policies which have been adopted. 9. The Corporation of the City of Niagara Falls may regulate, through site plan control, matters relating to sustainable design elements on any adjoining highway under the City's jurisdiction or the Region of Niagara's jurisdiction, including without limitation, trees, shrubs, hedges, plantings or other ground cover, permeable paving materials, street furniture, curb ramps, waste and recycling containers and bicycle parking facilities in accordance with Official Plan policies which have been adopted by Council. 10. The approval of the drawings that make up the site plan may be subject to a requirement that the applicant/owner enter into one or more agreements with the City which agreements may, at the sole discretion of the City, require the applicant to post such security of performance as the City, in its sole discretion, considers appropriate. 11. The Council of the Corporation of the City of Niagara Falls hereby delegates to and appoints the Director of Planning, Building and Development or his or her designate when the Director of Planning, Building and Development is unable to conduct his or her duties pursuant to this by -law through illness or otherwise, to execute any of the powers and authority of Council under section 41 of the Planning Act, R.S.O. 1990, c.P.13 except the authority to define any class or classes of development as stated in clause 41(13)(a) of the said Act. 12. Any approval granted in accordance with this by -law shall be deemed to be subject to the terms of any agreement required as a condition of that approval. Failure to adhere to the terms of any agreement required as a condition of an approval, including, without limiting the generality of the foregoing, failure to post or maintain any required securities, shall nullify that approval. In the event an approval is nullified due to a failure to adhere to the terms of an agreement, any and all development that has been undertaken in purported reliance upon the nullified approval shall be deemed to have been undertaken without the approval of Council. 13. Notwithstanding any clause contained in this by -law, the Director of Planning, Building and Development, or his or her designate, may amend an approved site plan drawing and/or site plan agreement with a redline revision to facilitate a change, alteration or modification that is considered minor in the opinion of the Director of Planning, Building and Development or his or her designate. 14. The Mayor and Clerk are hereby authorized to execute on behalf of and under the seal of The Corporation of the City of Niagara Falls any agreement made pursuant to Section 41 of the Planning Act, R.S.O. 1990, c.P.13 and provided for by this by -law. - 4 - 15. By -laws No. 2001 -103, 2003 -28 and 2004 -152 are hereby repealed. Passed this twenty -fifth day of August, 2011. DEAN IORFIDA, CITY CLERK JAMES M. DIODATI, MAYOR First Reading: Second Reading: Third Reading: August 25, 2011 August 25, 2011 August 25, 2011 S:\SITEPLAN\GENERAL\2011\SPC By -law (Council Aug 25- 2011).wpd CITY OF NIAGARA FALLS By -law No. 2011 - A by -law to appoint Councillor Vince Kerrio as Acting Mayor. WHEREAS Section 242 of the Municipal Act. 2001 provides that a municipality may by by -law or resolution appoint a member of the Council to act in the place of the head of Council when the head of Council is absent or refuses to act or the office is vacant and while so acting such member has all the power and duties of the head of Council; and WHEREAS the office of Mayor of the City of Niagara Falls will be vacant as a result of James M. Diodati being absent from the City from September 3, 2011 to and including September 10, 2011; and WHEREAS the said Council deems it desirable to appoint an Acting Mayor until the return of James M. Diodati. THE COUNCIL OF THE CORPORATION OF THE CITY OF NIAGARA FALLS ENACTS AS FOLLOWS: 1. Councillor Vince Kerrio is hereby appointed Acting Mayor from September 3, 2011 to and including September 10. 2011. At the conclusion of the period described in paragraph 1, James M. Diodati shall resume his appointment as Mayor, together with all powers and duties associated with that office. Passed this twenty -fifth day of August, 2011 . DEAN IORFIDA, CITY CLERK JAMES M. DIODATI, MAYOR First Reading: Second Reading: Third Reading: August 25. 2011. August 25, 2011. August 25, 2011. Passed this twenty -fifth day of August, 2011. First Reading: Second Reading: Third Reading: August 25, 2011 August 25, 2011 August 25. 2011 CITY OF NIAGARA FALLS By -law No. 2011 - A by -law to adopt, ratify and confirm the actions of City Council at its special meeting held on the 25 day of August. 2011. WHEREAS it is deemed desirable and expedient that the actions and proceedings of Council as herein set forth be adopted, ratified and confirmed by by -law. NOW THEREFORE THE COUNCIL OF THE CORPORATION OF THE CITY OF NIAGARA FALLS ENACTS AS FOLLOWS: 1. The actions of the Council at special its meeting held on the 25` day of August. 2011 including all motions, resolutions and other actions taken by the Council at its said meeting. are hereby adopted. ratified and confirmed as if they were expressly embodied in this by -law. except where the prior approval of the Ontario Municipal Board or other authority is by law required or any action required by law to be taken by resolution. Where no individual by -law has been or is passed with respect to the taking of any action authorized in or with respect to the exercise of any powers by the Council, then this by -law shall be deemed for all purposes to be the by -law required for approving. authorizing and taking of any action authorized therein or thereby, or required for the exercise of any powers thereon by the Council. 3. The Mayor and the proper officers of the Corporation of the City of Niagara Falls are hereby authorized and directed to do all things necessary to give effect to the said actions of the Council or to obtain approvals where required, and. except where otherwise provided. the Mayor and the Clerk are hereby authorized and directed to execute all documents arising therefrom and necessary on behalf of the Corporation of the City of Niagara Falls and to affix thereto the corporate seal of the Corporation of the City of Niagara Falls. DEAN IORFIDA, CITY CLERK JAMES M. DIODATI. MAYOR