Exhibit 2
THIS LEASE MODIFICATION AGREEMENT dated for reference this 16th day of May, 2003
BETWEEN:
ELECTRIC AVENUE PROPERTIES INC., whose name has
been changed to THE OLD BC ELECTRIC BUILDING CORP.
c/o Macdonald Commercial Real Estate Services
Ltd., Suite 301 - 1770 Xxxx 0xx Xxxxxx, Xxxxxxxxx,
X.X. X0X 0X0.
(hereinafter called the "Landlord")
AND:
PHOTOCHANNEL NETWORKS INC, of #506 & #507 - 000
Xxxxxxx Xxxxxx, Xxxxxxxxx, XX.
(hereinafter called the "Tenant")
WHEREAS:
A. By a lease (the "ORIGINAL LEASE") made July 12, 2001 between the
Landlord and the Tenant, the Landlord leased to the Tenant for a term
of Three (3) years from August 1, 2001 to July 31, 2004 premises (the
"LEASED PREMISES") shown outlined in red on the copy of the site plan
as attached to the Original Lease, consisting of Two Thousand Six
Hundred Sixty Three (2663) square feet, more commonly known as #506 &
#507 - 000 Xxxxxxx Xxxxxx, Xxxxxxxxx, Xxxxxxx Xxxxxxxx;
B. The Landlord and Tenant have agreed to modify the Original Lease on the
terms herein set forth.
NOW, THEREFORE, in consideration of the grants, rents and mutual covenants
hereinafter reserved and contained, the parties covenant and agree as follows:
1. The Landlord hereby demises and leases to the Tenant, and the Tenant
hereby leases from the Landlord a portion of the lands known as suite
#000 - 000 Xxxxxxx Xxxxxx, Xxxxxxxxx, XX, consisting of One Thousand
Six Hundred Seventy Four (1674) square feet (the "Additional Space")
which will be added to be added to the floor area of the Premises;
2. A plan of the Additional Space is attached as Schedule "A".
3. Article 1 (e) of the Original Lease shall be amended to include the
floor area of the Additional Space resulting in a total amended floor
area of the Premises of Four Thousand Three Hundred Thirty Seven (4337)
square feet, the whole as outlined in red within the attached Schedule
"B".
4. Article 1 (f) of the Original Lease shall be amended to extend the term
of the Lease to expire July 31, 2007.
5. Schedule "B" Article 1(g) of the Original Lease shall be amended to
reflect the proportionate share of the premises to be 4.28%.
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Landlord Tenant
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[ILLEGIBLE]
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6. The monthly rent payable shall be abated for a period of Eleven Months
from July 1, 2003 to May 31, 2004 in the amount of $1,646.10 per month.
7. The Tenant shall pay rent based on the amended floor area of Four
Thousand Three Hundred Thirty Seven (4337) square feet (Schedule "A"),
and as such Article 1 (h) of the Original Lease will be amended to
include this floor area and read as follows:
RENT:
Date $ per Square Foot Annual Rent Monthly Rent
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07/01/03-07/31/07 $18.00 (4337 sq. ft) $78,066.00 $6,505.50
8. The Premises shall be provided "as is" except that the Landlord at it's
cost shall:
a) Build a boardroom as specified on Schedule "C" of this Lease Modification
Agreement.
b) Install data lines and telephone lines as required to the four offices,
boardroom and perimeter walls of the Premises.
c) Provide HVAC to the Premises.
d) Paint and prepare the Premises.
9. All other terms and conditions contained in the Original Lease shall
apply to this Agreement during the Term except:
(i) as hereby expressly modified,
(ii) for any tenant inducements or allowances, rent abatements, or
like concessions or rights which applied to the initial term of
the Original Lease
Adjustments from the Municipal Tax Escalation Over Base Year/Operating
Costs Escalation Over Base Year shall continue to apply as provided for
within the Original Lease.
10. This Agreement will enure to the benefit and be binding upon the
Landlord and Tenant and their respective heirs, successors and
permitted assigns.
IN WITNESS WHEREOF the Landlord and the Tenant have executed this
Agreement as of the day and year first above-written.
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Landlord Tenant
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[ILLEGIBLE]
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TENANT: )
)
SIGNED, SEALED AND DELIVERED BY: ) Per:
)
PHOTOCHANNEL NETWORKS INC. ) I AM AUTHORIZED TO REPRESENT THE COMPANY
)
in the presece of the witness: )
) /s/Xxxxxx Xxxxxxxxxxx
Xxxxx Xxxxxxxx ) ----------------------------------
----------------------------------- ) Name & Title: Xxxxxx Xxxxxxxxxxx
Name of Witness (Please Print) ) CFO
)
XXXXXXXXX COMMERCIAL )
REAL ESTATE SERVICES LTD. )
#000 - 0000 XXXX 0XX XXXXXX )
XXXXXXXXX, X.X. X0X 0X0 )
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Address of Witness )
)
)
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Occupation of Witness )
)
/s/Xxxxx Xxxxxxxx )
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Signature of Witness
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LANDLORD:
SIGNED, SEALED AND DELIVERED BY: )
)
THE OLD BC ELECTRIC BUILDING CORP. )
)
In the presence of the witness: )
)
Xxxxx Xxxxxxxx ) /s/ [ILLEGIBLE]
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Name of Witness (Please Print) ) Authorized Signature
)
XXXXXXXXX COMMERCIAL )
REAL ESTATE SERVICES LTD. )
#000 - 0000 XXXX 0XX XXXXXX )
XXXXXXXXX, X.X. X0X 0X0 )
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Address of Witness )
)
)
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Occupation of Witness )
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/s/Xxxxx Xxxxxxxx )
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Signature of Witness )
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Landlord Tenant
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