101.The mortgagor covenants with the mortgagee that the mortgagor shall pay to the mortgagee the principal sum and interest as hereinbefore set out and all other money payable hereunder; on all arrears of principal, interest and any other sums due to the mortgagee, interest shall be payable at the times and at the interest rate stated, before as well as after maturity, until paid.

102.The mortgagor covenants with the mortgagee that the mortgagor shall insure and keep insured during the continuance of this mortgage the buildings on the lands and premises during their erection and thereafter in the amount of not less than their full insurable value in dollars of lawful money of Canada against loss or damage by fire and any other insurable perils that may be deemed necessary by the mortgagee, all such insurance to be carried in a company or companies approved of by the mortgagee to whom the loss for all such policies shall be made payable; and that the mortgagor shall pay all premiums and sums of money necessary for such purposes as the same shall become due, and shall forthwith assign and deliver to the mortgagee the policy or policies of insurance with mortgage clause attached satisfactory to the mortgagee, all renewal receipts and renewals thereto appertaining, and shall deliver evidence of renewal to the mortgagee; and that the mortgagee may at his option effect such insurance on behalf of the mortgagor, and any amount paid therefor by the mortgagee shall be payable forthwith by the mortgagor to the mortgagee.

103.The mortgagor covenants with the mortgagee that forthwith on the happening of any loss or damage the mortgagor shall furnish all necessary proofs and do all necessary acts to enable the mortgagee to obtain payment of the insurance proceeds; and that such insurance proceeds received by the mortgagee may at the option of the mortgagee be applied to repair or rebuild the building, or to pay the principal sum, interest and other money payable hereunder, whether or not any amount is then due, in such manner as the mortgagee may determine, or to pay the mortgagor or any person appearing by the registered title to be the owner of the lands and premises, or partly in one way and partly in another; but any payment of insurance proceeds to the mortgagor shall not operate as a reduction of any money payable hereunder by the mortgagor to the mortgagee.

104.The mortgagor covenants with the mortgagee that the mortgagor shall pay all premiums pertaining to life insurance assigned to the mortgagee as collateral security as such premiums fall due; in the event of default the mortgagee may pay the premium and any amount so paid shall be payable forthwith by the mortgagor to the mortgagee.

105.The mortgagor covenants with the mortgagee that all erections, buildings, machinery, plant, and improvements whatsoever, including furnaces, boilers, water heaters and all plumbing, air conditioning, ventilating and heating equipment, electric light fixtures, window blinds, storm windows and storm doors, window screens and screen doors, and all apparatus and equipment appurtenant thereto, which are now or which shall hereafter be put upon the lands and premises, are or shall thereafter be deemed to be fixtures and a part of the lands, even though not attached otherwise than by their own weight.

106.The mortgagor covenants with the mortgagee that during the continuance of this mortgage, the mortgagor shall maintain the lands and premises and improvements of the lands and premises in good and sufficient order and repair to the satisfaction of the mortgagee, and that the mortgagor shall permit the mortgagee at all reasonable times to inspect the lands and premises, and in the event of any default by the mortgagor to maintain as aforesaid, the mortgagee in addition to any other remedies by these presents given and conferred may at such time or times as he may deem necessary and without the concurrence of any other person make such arrangements for repairing, finishing and putting in order any buildings or other improvements of the lands and premises, and for inspecting, taking care of, leasing, collecting the rents of, and managing generally the lands and premises as he may deem expedient, and all reasonable costs, charges and expenses including allowance for the time and services of the mortgagee or other person appointed for the above purposes shall be payable forthwith by the mortgagor to the mortgagee.

107.The mortgagor covenants with the mortgagee that the mortgagor will not make or permit to be made any demolition, alterations or additions to the lands and premises without the consent of the mortgagee, and will not use the lands and premises or permit them to be used, without the consent of the mortgagee, for a purpose other than that disclosed to the mortgagee in the application for this mortgage.

108.The mortgagor covenants with the mortgagee that the mortgagor shall pay all taxes, rates, levies and assessments upon the lands and premises during the continuance of this mortgage as and when the same become due and payable, and shall produce to the mortgagee receipts for such payments.

109.The mortgagor covenants with the mortgagee that the mortgagee may, at his option, require the mortgagor to make instalment payments to the mortgagee on account of taxes, rates, levies and assessments upon the lands and premises, such payments to be an estimate by the mortgagee of the sum required to accumulate a fund sufficient to pay such taxes, rates, levies and assessments when they become due; the mortgagee may apply any such payment against the principal sum, interest and other money payable hereunder.

110.The mortgagor covenants with the mortgagee that the mortgagor shall pay all fees, costs as between solicitor and client, charges and expenses which are incurred in making and maintaining this mortgage as a first charge on the lands and premises, or in negotiating or effecting a renewal of this mortgage, or in obtaining or retaining or realizing or attempting to realize upon any security collateral to this mortgage, or in advancing the money under this mortgage or in inspecting or revaluing the lands and premises, or in taking, recovering and keeping or attempting to procure possession of the lands and premises, or in any proceeding judicial or otherwise to protect or to realize this security, and any amounts so paid by the mortgagee shall be payable forthwith by the mortgagor to the mortgagee.

111.The mortgagor covenants with the mortgagee that, if this mortgage is a building mortgage, and if the mortgagor, after any part of the principal sum has been advanced, fails at any time for a period of thirty days to diligently carry on the work of construction of the building or buildings to be erected on the lands or premises, or without the consent in writing of the mortgagee departs in such construction from any plans and specifications thereof approved by the mortgagee or from the generally accepted standards of construction in the locality of the lands and premises, or permits any construction lien or other liens to be registered against the lands and premises for any period exceeding thirty days, the mortgagee at his option at any time thereafter through his servants, agents or contractors may enter on the lands and premises and have exclusive possession thereof and of all materials, plant, gear and equipment thereon free of interference from or by the mortgagor and proceed to complete the construction of the building or buildings either according to the said plans and specifications or according to other plans, specifications or design as the mortgagee in his absolute discretion shall elect, and all expenses of every nature incurred by the mortgagee in going into possession and in completing and equipping the building or buildings or in any way in connection therewith shall be payable by the mortgagor to the mortgagee.

112.The mortgagor covenants with the mortgagee that the mortgagee may pay any liens, taxes, rates, charges or encumbrances now or hereafter existing upon the lands and premises having or which the mortgagee may bona fide consider to have priority over this mortgage, and in that event the mortgagee shall have all the rights of and stand in the position of and be entitled to all the rights, equities and securities of the person so paid off; and any amounts so paid shall be payable forthwith by the mortgagor to the mortgagee; and the decision of the mortgagee as to the validity or amount of any advance or disbursement made under this mortgage or of any claim so paid off shall be final and binding on the mortgagor.

113.The mortgagor covenants with the mortgagee that neither the execution nor registration of this mortgage nor the advance of part of the principal sum shall bind the mortgagee to advance the principal sum or any unadvanced portion thereof; any advance shall be at the sole discretion of the mortgagee.

114.On default of any payment hereunder or on breach of any covenant, agreement or proviso herein contained or implied on the part of the mortgagor to be made, observed or performed; or if any waste be committed or suffered on the lands and premises or any act or thing be done by the mortgagor by which the value of the lands and premises shall, or in the opinion of the mortgagee may, be diminished; or if the mortgagor makes an assignment for the benefit of creditors or a proposal under the Bankruptcy Act, or has a bankruptcy petition filed against him; or if the mortgagor allows a creditor to enter judgment against him by reason of his financial inability to pay a debt or debts; then the whole of the principal sum, interest and all other money payable hereunder remaining unpaid shall at the option of the mortgagee become due and the mortgagee shall have quiet possession of the lands and premises; but in the event that the mortgagee waives his right to call in the whole of such money he shall not be debarred from asserting and exercising his right to call in the money upon the happening of any future default or breach.

115.On default of any payment hereunder or on breach of any covenant, agreement or proviso herein contained or implied on the part of the mortgagor to be made, observed or performed, in whole or in part, the power of sale and all other powers conferred on the mortgagee by virtue of the Property Act, R.S.N.B. 1973, c. P-19, are incorporated herein, as if the mortgage were made by deed.

116.A discharge of this mortgage shall be prepared by the mortgagee at the expense of the mortgagor, and the mortgagee shall have a reasonable time after receipt of payment in full within which to prepare and execute such discharge.

117.The mortgagee may, either with or without consideration, release any person from any liability under this mortgage or release part or all of the lands and premises or release any other security for the money payable hereunder, without being accountable for the value thereof or for any moneys except those actually received by the mortgagee and without releasing any other of the lands and premises where a part of the lands and premises are released.

118.This mortgage shall not operate by way of merger of any indebtedness of the mortgagor to the mortgagee or any contract or instrument by which the same may now or at any time hereafter be represented or evidenced, and no judgment obtained by the mortgagee shall operate by way of merger of this mortgage or in any way affect the security hereby created or the mortgagee’s right to interest.

119.The mortgagor covenants with the mortgagee that any sum owing or required by this mortgage to be paid by the mortgagor to the mortgagee shall be added to the principal sum and shall form a charge upon the lands and premises and shall bear interest at the rate herein stipulated until paid.

11.The lessee covenants with the lessor that the lessee shall for the duration of this lease pay to the lessor the rent hereby reserved on the days and in the manner herein set out without any deduction whatsoever.

12.The lessee covenants with the lessor that the lessee shall for the duration of this lease maintain the demised premises in good and sufficient order and repair to the satisfaction of the lessor, reasonable wear and tear and damage by fire, lightning, tempest and the like excepted.

13.The lessee covenants with the lessor that the lessee shall permit the lessor, his servants, agents and employees at all reasonable times for the duration of this lease to enter upon the demised premises for the purpose of inspecting the state of repair or making such repairs as the lessor may from time to time consider necessary.

14.The lessee covenants with the lessor that the lessee shall not, without the prior written consent of the lessor, place any building, erection, addition or improvement, other than trade fixtures, upon the demised premises, or alter the interior of the demised premises or any part thereof.

15.The lessee covenants with the lessor that the lessee shall use the demised premises only for the purpose or purposes agreed upon by the lessor and lessee.

16.The lessee covenants with the lessor that the lessee shall not, without the written consent of the lessor, which consent shall not be unreasonably withheld, assign, transfer, set over, sublet or otherwise by any act or deed cause or permit the demised premises or any part thereof to be assigned, transferred, sublet or set over unto any person or persons whomsoever.

17.The lessee covenants with the lessor that the lessee shall promptly comply with and conform to the requirements of every federal and provincial statute, rule, regulation and ordinance, and every local government by-law, rule, regulation, order and ordinance at any time or from time to time in force affecting the use or occupation of the demised premises or any part thereof by the lessee.

18.The lessee covenants with the lessor that the lessee shall upon the expiration or other sooner determination of this lease peaceably deliver to the lessor vacant possession of the demised premises in the condition in which the lessee is by this lease required to maintain the demised premises.

19.The lessee covenants with the lessor that the lessee shall permit the lessor, his servants, agents and employees at reasonable times and after reasonable notice to enter the demised premises for the purpose of showing it to prospective tenants and purchasers.

20.The lessee covenants with the lessor that the lessee shall pay as they become due all charges for public utilities including electricity, gas, water, telephone and all other services provided by any public utility in connection with the occupancy of the demised premises.

21.The lessee covenants with the lessor that the lessee shall not carry on or permit to be carried on upon the demised premises any activity which may cause an increase in premiums for insurance upon the building wherein the demised premises are situate, or which may render void or voidable any policy of insurance.

22.The lessee covenants with the lessor that the lessee shall pay for the duration of this lease all taxes, rates, levies and assessments charged against the demised premises in connection with the lessee’s use and occupation thereof.

23.The lessee covenants with the lessor that the lessee shall at his own expense take out and keep in force public liability and property damage insurance in the names of the lessor and the lessee for injury, death or property damage occurring in, or arising in connection with the operation of, the demised premises, with all inclusive coverage.

24.The lessee covenants with the lessor that the lessee shall pay to the lessor as additional rent in each year of the term hereby demised his proportion of

25.The lessee covenants with the lessor that the lessee shall conduct his business in and use the whole of the demised premises in a reputable manner; a business practice by the lessee whether through advertising, selling procedures or otherwise which in the opinion of the lessor may harm the business or reputation of the lessor or reflect unfavourably on the lessor or other tenants of premises in the building, or which may confuse, mislead or deceive the public, shall immediately be discontinued by the lessee at the request of the lessor.

26.In the event that the lessee is in default of payment of any amount required by this lease to be paid by him, the lessor may pay such amount on his behalf and recover that amount together with his reasonable expenses from the lessee as rent, with all remedies incidental thereto as if that amount and expenses were included in the rent hereby reserved.

27.In the event that the rights of the lessee under this lease are at any time seized or taken in execution or attachment by any creditor of the lessee, or the lessee makes an assignment for the benefit of creditors, becomes bankrupt or insolvent, or takes the benefit of any statute that may be in force for bankrupt or insolvent debtors, then the current month’s rent, including additional rent, and the next three month’s rent, including additional rent, immediately become due and payable and, in the manner prescribed by law, the lease and term shall, at the option of the lessor, become forfeited and void and the lessor may enter into and upon the demised premises, or any part thereof in the name of the whole, by force or otherwise as he may see fit, to have again, repossess and enjoy, as of its former estate, anything herein contained to the contrary notwithstanding.

28.The lessor covenants with the lessee that the lessee, paying the rent hereby reserved and performing the covenants on his part to be performed, shall and may peaceably possess and enjoy the demised premises for the duration of this lease without any interruption or disturbance from the lessor or any person lawfully claiming under him.

29.The lessor covenants with the lessee that the lessor shall effect fire and extended coverage insurance and insurance against all other risks required to be insured against by a mortgagee, if any, as well as boiler and pressure vessel insurance, on the whole of the building of which the demised premises forms a part in such amounts as the lessor and mortgagee shall from time to time deem to be required.

30.The lessor covenants with the lessee that the lessor shall pay all taxes and rates, including local improvement rates, local government, provincial, federal or otherwise, assessed against the demised premises or the lessor or lessee on account thereof, save and except any business taxes and taxes upon the personal property and income of the lessee.

31.The lessor may assign his rights under this lease as collateral security for a loan and in the event that such an assignment is given and executed by the lessor and notification thereof is given to the lessee by or on behalf of the lessor, it is expressly agreed between the lessor and the lessee that this lease shall not be cancelled or modified for any reason whatsoever without the consent in writing of the assignee.

32.The lessee may at or prior to the termination of this lease, take, remove and carry away from the demised premises all fixtures, fittings, plant, machinery, utensils, shelving, counters, safes or other articles placed in or on the premises in the nature of trade or tenants’ fixtures or other articles belonging to or brought upon the premises by the lessee, but the lessee shall in such removal do no damage to the premises or shall make good any damage which he may occasion thereto.

33.For the duration of this lease or any renewal thereof the lessee has an insurable interest in any alterations, additions and improvements that may be made by the lessee in and to the demised premises, and the lessee is entitled to insure such alterations, additions and improvements up to their full insurable value and to receive the proceeds of any insurance so placed by him.

34.If the demised premises are rendered partially unfit for the lessee by fire, lightning, tempest or other insurable casualty, the rent hereby reserved shall abate in part only in the proportion that the part of the demised premises rendered unfit for the lessee bears to the whole of the demised premises, or if the demised premises are rendered wholly unfit for the lessee, this lease shall be terminated and the rent hereby reserved and all other charges shall be apportioned and paid to the date of occurrence of the casualty.

35.The lessor shall have the right to make changes or additions to the pipes, conduits and ducts in the demised premises where necessary to serve adjoining premises but not in a way to interfere materially with the use and enjoyment of the demised premises and shall make good any damage to the demised premises so caused.

36.In the event that the lessee holds over beyond the duration of this lease or the renewal thereof with or without the consent of the lessor and without any further written agreement, the tenancy resulting shall be a monthly tenancy only, at a monthly rental equivalent to the amount paid per month during the last month of the term hereby granted or the renewal thereof and subject to termination at the election of the lessor or lessee upon one month’s notice in writing and subject also to the terms, conditions and covenants herein set out.

37.The lessee, his employees, customers, invitees and all others requiring communication with them, shall have the use in common with all others entitled thereto, of the common area.

38.The lessor shall not in any event whatsoever be liable or responsible in any way for any personal injury or death that may be suffered or sustained by the lessee or any employee of the lessee or any other person who may be upon the demised premises or for any loss of or damage or injury to any property belonging to the lessee or to his employees or to any other person while such property is on the demised premises, unless due to the negligence of the lessor, his employees, agents or licensees.

39.Subject to the lessor’s approval, which approval shall not be unreasonably withheld, the lessee may install in, upon or about the demised premises any signs or advertising material which shall remain the property of the lessee and which the lessee may remove regardless of the degree of affixation upon expiration or termination of this lease or any renewal thereof provided that the lessee shall make good any damage caused to the demised premises by such installation and removal.

40.In the case of any dispute between the lessor and the lessee during the continuance of this lease or any renewal thereof, as to any matter arising hereunder which it is agreed between the parties hereto shall be settled by arbitration, either party hereto shall be entitled to give to the other party notice of such dispute and demand arbitration thereof and, after giving notice and demand, each party shall at once appoint an arbitrator and such appointees shall jointly appoint a third; the decision of any two of the three arbitrators so appointed shall be final and binding upon the parties hereto who covenant one with the other that their disputes shall be so decided by arbitration alone and not by recourse to any court or action at law; if within a reasonable time the two arbitrators appointed by the parties hereto do not agree upon a third or if the party who has been notified of a dispute fails to appoint an arbitrator, then a third arbitrator or an arbitrator to represent the party in default may, upon petition of the party not in default, be appointed by a judge of The Court of King’s Bench of New Brunswick; the cost of arbitration shall be apportioned between the parties hereto as the arbitrators may decide.

41.Any condoning, excusing or overlooking by the lessor of any default, breach or non-observance by the lessee at any time or times in respect of any covenant, proviso or condition herein contained shall not operate as a waiver of the lessor’s rights hereunder in respect of any continuing or subsequent default, breach or non-observance, nor so as to defeat or affect in any way the rights of the lessor.

42.All policies of insurance placed by the lessee shall contain a waiver or waivers of subrogation against the lessor and the lessee waives, releases and discharges all rights, claims and demands whatsoever which the lessee might have or acquire against the lessor arising out of damage to or destruction of the building or any part thereof occasioned by any of the perils insured against by the lessee or which the lessee has agreed to insure against, whether or not such rights, claims and demands shall arise through the negligence or other fault of the lessor, his servants, agents or contractors.