Option to Lease Agreement by PrestigeLegalDoc

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									                     OPTION TO LEASE AGREEMENT
This Agreement is made as of ________________, 2_____.

BETWEEN:



                                       (the "Optionor")

                                            - and -



                                       (the "Optionee")

Recitals:

A.     The Optionor is the owner with a good and marketable title in fee simple to the Optioned
       Premises (as defined herein), free and clear of encumbrances, save and except as
       provided for herein.

B.     The Optionor has agreed to grant options to lease the Optioned Premises in favour of the
       Optionee upon the terms and conditions set out herein.

        NOW THEREFORE in consideration of the mutual covenants contained herein, other
good and valuable consideration, and the sum of ________ ($_____) now paid by the Optionee
to the Optionor, the receipt and sufficiency of which is hereby acknowledged, the parties agree
as follows:

1.     Truth of Recital A

The Optionor hereby represents and warrants to the Optionee that Recital A is true in substance
and in fact.

2.     Description of Optioned Premises

The lands and premises (the “Optioned Premises”) are more particularly described on
Schedule “A” annexed hereto, and legally described as _______________.

3.     Grants of Option Relating to Optioned Premises

The Optionor hereby grants to the Optionee an exclusive irrevocable option to lease the Optioned
Premises (or a portion thereof as provided herein) on the terms set out in this Agreement (the
"Option to Lease").
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4.   Term of Option to Lease and Grant and Term of Subsequent Option to Lease

     (a)   The Optionee may exercise the Option to Lease by written notice (the “Exercise
           Notice”) to the Optionor at any time until the ___ day of ________, 2____ (the
           "Option to Lease Period"). The Optionee shall be entitled in the Exercise Notice
           to stipulate all or a portion of the Optioned Premises as being the lands subject to
           the exercise of the option (the “Initial Exercise Premises”), by sketch attached to
           the Exercise Notice delineating such Initial Exercise Premises.

     (b)   In the event that pursuant to the Exercise Notice the Initial Exercise Premises are
           less than the Optioned Premises, then with respect to the Excluded Premises the
           Optionor hereby grants to the Optionee a continuing exclusive irrevocable option
           to lease the Excluded Premises (or a portion thereof as provided herein) on the
           terms set out in this Agreement (the “Subsequent Option to Lease”). The
           Optionee may exercise the Subsequent Option to Lease by written notice (the
           “Subsequent Exercise Notice”) to the Optionor at any time until the ____ day of
           ________, 2_____ (the “Subsequent Option to Lease Period”). In the event the
           Optionee delivers the Subsequent Exercise Notice, the Optionee shall be entitled
           to exercise its option in respect of a portion of the Excluded Premises, provided
           that the remainder of the Excluded Premises not subject to the exercise of such
           option (the “Subsequently Excluded Premises”).

     (c)   Provided that the Optionor shall be permitted to continue to market and offer the
           Excluded Premises or any part thereof for lease and/or sale to a third party or third
           parties and if a satisfactory offer to lease or sell the Excluded Premises or any part
           thereof is received by the Optionor (the “Acceptable Offer”), the Optionor may
           notify the Optionee in writing thereof and the Optionee shall be required within
           ninety (90) days from _____ p.m. on the date of receipt of the said notice to
           provide a Subsequent Exercise Notice of its intention to exercise the Subsequent
           Option to Lease, failing which, the Optionor may terminate the Subsequent
           Option to Lease with respect to any of the Excluded Premises affected by the
           Acceptable Offer and shall be free to lease and/or sell Excluded Premises or any
           part thereof pursuant to the Acceptable Offer.

5.   Option Premium in respect of Option to Lease and Subsequent Option to Lease

     (a)   The Optionee shall pay to the Optionor monthly, in advance, commencing on the
           _____ day of ________, 2____, and on the ____ day of _____, 2_____ and the
           ____ day of________, 2____, prior to exercise by the Optionee of the Option to
           Lease, the option premium payment of __________ ($_______) Dollars plus any
           applicable taxes and on the ____ day of ______, 2_____ and the first day of each
           following month during the Option to Lease Period, prior to exercise by the
           Optionee of the Option to Lease, the option premium payment of ___________
           ($_______) Dollars plus any applicable taxes (collectively the “Option Premium
           Monthly Payments”). The Optionor acknowledges timely receipt of the Option
           Premium Monthly Payments due __________, ___________ and ___________.
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       (b)    Notwithstanding the foregoing the Optionee may by not less than thirty (30) days
              prior written notice from the first day of the month following the date upon which
              such notice is given to the Optionor terminate this Option to Lease Agre
								
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