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Coffee Shop Essay

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In this RFP the following definitions shall apply: “City” means the City of Surrey; “City Representative” has the meaning set out in section 1. 8; “City Website” means www. surrey. ca; “Closing Time” has the meaning set out in section 1. 3; “Contract” means a formal written contract between the City and a Preferred Proponent to undertake the Services, the preferred form of which is attached as Schedule B; “Evaluation Team” means the team appointed by the City; “Information Meeting” has the meaning set out in section 1.

4; “Preferred Proponent(s)” means the Proponent(s) selected by the Evaluation Team to enter into negotiations for a Contract; “Proponent” means an entity that submits a Proposal; “Proposal” means a proposal submitted in response to this RFP; “RFP” means this Request for Proposals; “Services” has the meaning set out in Schedule A; “Site” means the place or places where the Services are to be performed; and “Statement of Departures” means Schedule C-1 to the form of Proposal attached as Schedule C. Instructions To Proponents 2 Closing Time and Address for Proposal Delivery.

Proposals must be received by the office of the: Kam Grewal, BBA, CMA Acting Purchasing & AP Manager Address:6645 – 148 Street Surrey, BC V3S 3C7 on or before the following date and time (the “Closing Time”): Time: 3:00 pm local time Date: Monday, July 5, 2010 Submissions by fax [or email] will not be accepted. There will be no extension to the Closing Time for the submission of proposals. 3 Information Meeting An information meeting may be hosted by the City Representative to discuss the City’s requirements under this RFP (the “Information Meeting”).

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While attendance is at the discretion of Proponents, Proponents who do not attend will be deemed to have attended the Information Meeting and to have received all of the information given at the Information Meeting. At the time of issuance of this RFP a meeting has not been scheduled. 4 Number of Copies Proponents should submit the original plus 5 hard copies (6 in total) of their Proposals. 5 Late Proposals Proposals received after the Closing Time will not be accepted or considered.

Delays caused by any delivery, courier or mail service(s) will not be grounds for an extension of the Closing Time. 7 Amendments to Proposals Proposals may be revised by written amendment, delivered to the location set out above, at any time before the Closing Time but not after. An amendment must be signed by an authorized signatory of the Proponent in the same manner as provided by section 2. 3. Fax amendments are permitted, but such fax may show only the change to the proposal price(s) and in no event disclose the actual proposal price(s).

A Proponent bears all risk that the City’s fax equipment functions properly so as to facilitate timely delivery of any fax amendment. 8 Inquiries All inquiries related to this RFP should be directed in writing to the person named below (the “City Representative”). Information obtained from any person or source other than the City Representative may not be relied upon. Kam Grewal, BBA, CMA Acting Purchasing & AP Manager Address:City of Surrey – Purchasing 6645 – 148 Street Surrey, BC V3S 3C7 Phone: 604-590-7274 Fax:604-599-0956 Email:[email protected] ca Inquiries should be made no later than 7 days before Closing Time.

The City reserves the right not to respond to inquiries made within 7 days of the Closing Time. Inquiries and responses will be recorded and may be distributed to all Proponents at the discretion of the City. Proponents finding discrepancies or omissions in the Contract or RFP, or having doubts as to the meaning or intent of any provision, should immediately notify the City Representative. If the City determines that an amendment is required to this RFP, the City Representative will issue an addendum in accordance with section 1.

9. No oral conversation will affect or modify the terms of this RFP or may be relied upon by any Proponent. 9 Addenda If the City determines that an amendment is required to this RFP, the City will post a written addendum on the City website at www. surrey. ca (the “City Website”) and upon posting will be deemed to form part of this RFP. Upon submitting a Proposal, Proponents will be deemed to have received notice of all addenda that are posted on the City Website. 10 Examination of Contract Documents and Site.

Proponents will be deemed to have carefully examined the RFP, including all attached Schedules, the Contract and the Site (as applicable) prior to preparing and submitting a Proposal with respect to any and all facts which may influence a Proposal. 11 Opening of Proposals The City intends to open Proposals in private but reserves the right to open Proposals in public at its sole discretion. 12 Status Inquiries All inquiries related to the status of this RFP, including whether or not a Contract has been awarded, should be directed to the City Website and not to the City Representative.

Proposal Submission FORM AND contents 2 Package Proposals should be in a sealed package, marked on the outside with the Proponent’s name, title of the Project and reference number. 3 Form of Proposal Proponents should complete the form of Proposal attached as Schedule C, including Schedules C-1 to C-4. Proponents are encouraged to respond to the items listed in Schedules C-1 to C-4 in the order listed. Proponents are encouraged to use the forms provided and attach additional pages as necessary. 4 Signature.

The legal name of the person or firm submitting the Proposal should be inserted in Schedule C. The Proposal should be signed by a person authorized to sign on behalf of the Proponent. 1 If the Proponent is a corporation then the full name of the corporation should be included, together with the names of authorized signatories. The Proposal should be executed by all of the authorized signatories or by one or more of them provided that a copy of the corporate resolution authorizing those persons to execute the Proposal on behalf of the corporation is submitted.

2 If the Proponent is a partnership or joint venture then the name of the partnership or joint venture and the name of each partner or joint venturer should be included, and each partner or joint venturer should sign personally (or, if one or more person(s) have signing authority for the partnership or joint venture, the partnership or joint venture should provide evidence to the satisfaction of the City that the person(s) signing have signing authority for the partnership or joint venture).

If a partner or joint venturer is a corporation then such corporation should sign as indicated in subsection (a) above. 3 If the Proponent is an individual, including a sole proprietorship, the name of the individual should be included. evaluation and Selection 2 Evaluation Team The evaluation of Proposals will be undertaken on behalf of the City by the Evaluation Team. The Evaluation Team may consult with others including City staff members, third party consultants and references, as the Evaluation Team may in its discretion decide is required.

The Evaluation Team will give a written recommendation for the selection of a Preferred Proponent or Preferred Proponents to the City. 3 Evaluation Criteria The Evaluation Team will compare and evaluate all Proposals to determine the Proponent’s strength and ability to provide the Services in order to determine the Proposal which is most advantageous to the City, using the following criteria: 1 Experience, Reputation and Resources The Evaluation Team will consider the Proponent’s responses to items in C-2 of Schedule C including supplementary information.

3 Technical The Evaluation Team will consider the Proponent’s responses to items (i) to (vii) in C-3 of Schedule C. 5 Financial The Evaluation Team will consider the Proponent’s response to C-4 of Schedule C. (d)Statement of Departures The Evaluation Team will consider the Proponent’s response to C-1 of Schedule C. The Evaluation Team will not be limited to the criteria referred to above, and the Evaluation Team may consider other criteria that the team identifies as relevant during the evaluation process.

The Evaluation Team may apply the evaluation criteria on a comparative basis, evaluating the Proposals by comparing one Proponent’s Proposal to another Proponent’s Proposal. All criteria considered will be applied evenly and fairly to all Proposals. 4 Discrepancies in Proponent’s Financial Proposal If there are any obvious discrepancies, errors or omissions in C-4 of a Proposal (Proponent’s Financial Proposal), then the City shall be entitled to make obvious corrections, but only if, and to the extent, the corrections are apparent from the Proposal as submitted, and in particular:

(a)if there is a discrepancy between a unit price and the extended total, then the unit prices shall be deemed to be correct, and corresponding corrections will be made to the extended totals; (b)if a unit price has been given but the corresponding extended total has been omitted, then the extended total will be calculated from the unit price and the estimated quantity; (c)if an extended total has been given but the corresponding unit price has been omitted, then the unit price will be calculated from the extended total and the estimated quantity.

6 Litigation In addition to any other provision of this RFP, the City may, in its absolute discretion, reject a Proposal if the Proponent, or any officer or director of the Proponent submitting the Proposal, is or has been engaged directly or indirectly in a legal action against the City, its elected or appointed officers, representatives or employees in relation to any matter.

In determining whether or not to reject a Proposal under this section, the City will consider whether the litigation is likely to affect the Proponent’s ability to work with the City, its consultants and representatives and whether the City’s experience with the Proponent indicates that there is a risk the City will incur increased staff and legal costs in the administration of the Contract if it is awarded to the Proponent. 8 Additional Information

The Evaluation Team may, at its discretion, request clarifications or additional information from a Proponent with respect to any Proposal, and the Evaluation Team may make such requests only to selected Proponents. The Evaluation Team may consider such clarifications or additional information in evaluating a Proposal. 10 Interviews The Evaluation Team may, at its discretion, may invite some or all of the Proponents to appear before the Evaluation Team to provide clarifications of their Proposals. In such event, the Evaluation Team will be entitled to consider the answers received in evaluating Proposals.

12 Multiple Preferred Proponents and Changes to the Proponent Team The City reserves the right and discretion to divide up the Services, either by scope, geographic area, or other basis as the City may decide, and to select one or more Preferred Proponents to enter into discussions with the City for one or more Contracts to perform a portion or portions of the Services. If the City exercises its discretion to divide up the Services, the City will do so reasonably having regard for the RFP and the basis of Proposals.

Likewise, the City reserves the right to ask for changes in the member/s comprising the Proponent Team as it deems beneficial to the overall composition of the Team and without any obligation to justify its preference. In addition to any other provision of this RFP, Proposals may be evaluated on the basis of advantages and disadvantages to the City that might result or be achieved from the City dividing up the Services and entering into one or more Contracts with one or more Proponents.

NOT APPLICABLE 14 Negotiation of Contract and Award If the City selects a Preferred Proponent, then it may: (a)enter into a Contract with the Preferred Proponent; or (b)enter into discussions with the Preferred Proponent to clarify any outstanding issues and attempt to finalize the terms of the Contract, including financial terms. If discussions are successful, the City and the Preferred Proponent will finalize the Contract; or.

(c)if at any time the City reasonably forms the opinion that a mutually acceptable agreement is not likely to be reached within a reasonable time, give the Preferred Proponent written notice to terminate discussions, in which event the City may then either open discussions with another Proponent or terminate this RFP and retain or obtain the Services in some other manner. General Conditions 2 No City Obligation.

This RFP is not a tender and does not commit the City in any way to select a Preferred Proponent, or to proceed to negotiations for a Contract, or to award any Contract, and the City reserves the complete right to at any time reject all Proposals, and to terminate this RFP process. 4 Proponent’s Expenses Proponents are solely responsible for their own expenses in preparing, and submitting Proposals, and for any meetings, negotiations or discussions with the City or its representatives and consultants, relating to or arising from this RFP.

The City and its representatives, agents, consultants and advisors will not be liable to any Proponent for any claims, whether for costs, expenses, losses or damages, or loss of anticipated profits, or for any other matter whatsoever, incurred by the Proponent in preparing and submitting a Proposal, or participating in negotiations for a Contract, or other activity related to or arising out of this RFP. 6 No Contract.

By submitting a Proposal and participating in the process as outlined in this RFP, Proponents expressly agree that no contract of any kind is formed under, or arises from, this RFP, prior to the signing of a formal written Contract. 7 Conflict of Interest A Proponent shall disclose in its Proposal any actual or potential conflicts of interest and existing business relationships it may have with the City, its elected or appointed officials or employees. The City may rely on such disclosure. 8 Solicitation of Council Members and City Staff.

Proponents and their agents will not contact any member of the City Council or City staff with respect to this RFP, other than the City Representative named in section 1. 8, at any time prior to the award of a contract or the termination of this RFP. 10 Confidentiality All submissions become the property of the City and will not be returned to the Proponent. All submissions will be held in confidence by the City unless otherwise required by law. Proponents should be aware the City is a “public body” defined by and subject to the Freedom of Information and Protection of Privacy Act of British Columbia.

Schedule A SERVICES 1. GENERAL This RFP is inviting potential Proponents to submit Proposals to act as the tenant and sole vendor for a proposed coffee shop (the “Coffee Shop”) at the Surrey City Centre Library (the “Library”), currently being constructed at 10350 University Drive, Surrey, BC. The successful Proponent will be responsible for the managing and daily service of the Coffee Shop located on the ground floor of the Library. There will be an opportunity for the successful Proponent to provide catering for meetings and other similar functions, although it is not mandatory for the client to use the Coffee Shop for catering.

2. BACKGROUND As part of the Surrey City Centre plan review and update, the Surrey City Council has approved the construction of a new 5-level library. While the project is currently in the design phase, construction has commenced due to the fast track nature of the project. Currently excavation is complete on the basement and the ground floor slab and reinforcement is being set. It will be poured by Friday June 18, 2010. The Library is conveniently located near bus loops, transit and SkyTrain. The Library will eventually become part of a plaza where community celebrations will take place.

Once completed it will be Surrey’s largest library at 75,000 square feet. The City’s new Library will be a unique state of the art environmentally friendly landmark that provides access to the broadest range of information, learning opportunities, and diverse cultural experiences. The new Library will be: The centrepiece for Surrey’s City Centre; adorned in architectural excellence for the 21st century, the library will contribute to the vitality of the city and put Surrey in a class with other great cities.

A foundation for the City’s future success by boosting economic and cultural activity and attracting visitors from all parts of the country. A source of pride and a great public space, where the community gathers to celebrate, reflect, connect and share information, knowledge and culture. 3. PROJECT GOAL The goal of this project is to identify a coffee and related food services operator for the Library. 4. THE COFFEE SHOP An exciting opportunity exists on the ground floor to operate a commercial Coffee Shop. The Coffee Shop is located in a high traffic area, between the two main entrances, elevators and new book display.

The licence awarded to the successful Proponent would also include a seating area where customers can sit. The consumption of food within the Library itself is allowed. There are several meeting rooms and a large room which can host community events, along with teen areas, study areas, children’s areas and much more. It is also expected that the Library will be utilised by SFU students on a constant basis.

5. LIBRARY HOURS Library opening hours are: Monday to Friday9:30am – 9:00pm Saturday10:00am – 5:00pm Sunday 1:00pm – 5:00pm 6.2009 PEDESTRIAN TRAFFIC The following figures represent the estimated visits at all the public library branches for 2009. |BRANCH |VISITORS | |Cloverdale | 163,605 | |Fleetwood | 262,717 | |Guildford | 582,361 | |Newton | 357,045 | |Ocean Park |

193,167 | |Port Kells | 7,410 | |Semiahmoo | 305,162 | |Strawberry Hill | 357,166 | |Whalley | 276,406 | It is estimated that traffic for the Library will mirror that of the Whalley branch, and is expected to increase due to the development taking place in the area. 7. EXPECTATIONS OF THE SUCCESSFUL PROPONENT.

The City would require the successful Proponent to offer a variety of food and beverage choices that include healthy and nutritious options for all customers, many of whom are school-aged children. The Surrey Public Library Board has approved the policy (policy 3. 8 Healthy Food Options) that the Library provides a healthy food option for programs, special events and contests. No alcohol is to be allowed. There is to be no food smell generation if preparation is required and there is to be no electric grinding (e. g. coffee beans) on the Coffee Shop floor due to noise levels.

All grinding can be done in the storage room, manually or prior to Library opening hours. Loading of stock for the Coffee Shop can be done via the west entrance of the ground floor or via the elevators from the underground parkade. Persons meeting in the conference rooms are permitted to cater from external companies although there is the opportunity for the successful Proponent to cater these functions if prior arrangements are made between the two parties. The opening date for the Coffee Shop is yet to be determined, however, it is expected to be up and running by early Summer of 2011.

The Coffee Shop is expected to be operational during Library opening hours. Opening times for the Coffee Shop are to be from the Library’s opening time to half an hour prior to the Library’s closing. The successful Proponent would be able to enter the building half an hour prior to the Library’s opening time. The successful Proponent is to supply any equipment needed for the Coffee Shop to function including, but not limited to, coffee machines, refrigerator, signage, counter cooler case, etc. All business licences and food permits are the responsibility of the Proponent.

8. SUCCESSFUL PROPONENT’S WORK RESPONSIBILITIES a) Should there be any structural changes which have been reviewed and approved by the City prior to the execution of such changes, the tenant is to supply all tenant improvement plans signed and sealed by professional engineers or architects to be approved by the City. b) The tenant is to provide evidence of insurance for the City`s approval as specified in the License Agreement (refer to Schedule B – License Agreement).

c) The tenant is expected to supply all equipment needed to sufficiently run the coffee shop including, but not limited to, coffee machines and espresso equipment, undercounter refrigerators, shelving in the storage room, display cooler case, paper towel dispenser, milk cooler, microwave, cash register and trash bins. 9. COLD DRINK BEVERAGES The City has an agreement with The Pepsi Bottling Group (Canada), Co. (“Pepsi”), for the exclusive supply of cold drink beverages for all City facilities, including the Library. Therefore, the successful Proponent is to work directly with Pepsi for the supply of cold drink beverages, including: • Carbonated soft drinks • Teas other than fresh brewed • Juices.

• Juice-based products • Lemonade • Isotonics • Sports drinks • Energy drinks • Bottled water Excluded Beverages: • Milk • Flavoured milk • Cold coffee • Branded or unbranded fresh brewed coffee or tea • Hot chocolate • Unbranded fresh squeezed juices • Smoothies and milkshakes The agreement with Pepsi is to expire in 2011. 10. SNACK FOODS The City has an agreement with Ryan Company Ltd. (“Ryan Vending”), for the exclusive supply of a healthier snack foods program and vending services for all City facilities, including the Library. Therefore, the successful Proponent is to work directly with Ryan Vending for the supply of snack foods.

11. CITY’ RESPONSIBILITIES The City is to complete the Licence Area, as set out in Schedule B, in a good and workmanlike manner, at the City’s cost, using new materials and to the following extent: a) Interior wall taped and sanded drywall to code, painted white; b) Ceiling is to be painted concrete; c) The floor will be finished with a rubber covering; d) Counter tops on the horizontal front counter is to be a white laminate; e) The vertical section of the counters shall be an East Coast maple; f) The counter at the back of the shop floor containing the sink, and the backsplash, is to be white Corian;

g) There will be an apple ply edging where the vertical edge of the counters meets the horizontal at the front counter; h) There is to be recessed lighting fixtures above the back counter, surface mounted fixture on painted concrete ceiling to light signage and menu and pendant fixtures at the front counter; i) All signage, including Menu board, must be approved by the City and the design team (Bing Thom Architects). The preferred signage for the Coffee Shop is electric flat screens, however, the design team is open to ideas regarding electronic signage from Proponents.

This will have no impact on the evaluation of the Proponent’ Proposal; j) The City will provide the main sink and handwash sink located in the back counter; k) A 25mm domestic hot and cold water line with backflow preventor will be installed for refrigerator and coffee machine; and l) A 20mm domestic hot and cold water pipe and a 40mm sanitary drain will be installed for each of the two (2) sinks. term The Proponent will provide the Services set out in this Schedule A and A-1 for a term not to exceed five years (including renewal) commencing in the early Summer of 2011 (the “Term”).

Schedule A-1 DIAGRAMS [pic] Proposed coffee shop layout plan [pic] Proposed coffee shop elevation view [pic] Proposed Coffee Shop Section [pic] Proposed Coffee Shop overall plan [pic] Proposed Coffee Shop seating area Schedule B CONTRACT (DRAFT) [pic] LICENSE AGREEMENT Title:SURREY CITY CENTRE LIBRARY COFFEE SHOP Reference No. :1220-30-22-10 THIS LICENSE AGREEMENT dated this ____________ day of __________ 2010. BETWEEN: CITY OF SURREY 14245 – 56 Avenue Surrey, B. C. V3X 3A2 (the “Licensor”) OF THE FIRST PART AND:  (the “Licensee”).

OF THE SECOND PART WHEREAS: A. The Licensor is the owner of those lands and premises located at 10350 University Blvd within the City of Surrey, Province of British Columbia, and more particularly known and described as: Parcel Identifier: 028-179-951 Parcel 1 Section 27 Block 5 N Range 2 West New Westminster District Plan BCP44240 (the “Lands”) on which is located theCity Centre Library. B. The Licensee wishes to obtain from the Licensor a licence to use those portions of the building located on the Lands as follows: 1.

Area A Concession and Storage Room (“Licence Area A”) which area is approximately 141. 9 sq. ft. and shown on the plan attached hereto as Schedule “A”; and 2. Area B Seating Area (“Licence Area B”) as shown on the plan attached hereto as Schedule “A” (collectively the “Licence Area”) C. The Licensee intends to use the Licence Area for the retail sale of coffee, tea, and other products as outlined in this Licence. D. Licence Area A shall be for the exclusive use of the Licensee, and Licence Area B shall be for the non-exclusive use of the Licensee.

NOW THEREFORE in consideration of the sum of ONE DOLLAR paid by each of the parties to each other and other good and valuable consideration (the receipt and sufficiency of which each party hereby acknowledges) the parties hereby covenant and agree as follows: 1. In this License the parties agree that: (a)”Additional Rental” means the moneys payable hereunder, together with all other sums of money, whether or not designated as Additional Rental, to be paid by the Licensee whether to the Licensor or otherwise under this License save and except Minimum Rental and Percentage Rental; (b)”Commencement Date of Term” means ______________, 2011;

(c)”Gross Revenue” means the entire amount of the sales price, whether wholesale or retail, for cash, credit, or otherwise of all sales of merchandise and services, and all other receipts and receivables whatsoever of all business conducted at, in, upon, or from the Licence Area, including, without limiting the generality of the foregoing, receipts and receivables in respect of any sale effected by the Licensee using any computer, electronic, telephone, internet, or like system, where the Product is sent via the Licence.

Area or by the Licensee directly to a consumer, orders taken at or received at the Licence Area, although such orders may be filled elsewhere by the Licensee, deposits not refunded to customers, the selling price of gift certificates, charges to customers in the nature of interest or carrying or financing charges, sums, and credits received, and settlement of claims for loss of or damage to goods. No deductions shall be allowed for uncollected or uncollectible credit accounts. There shall not be included in Gross Revenue:

(i)any sums shown separately from the price and collected and paid out for any direct retail sales tax imposed by any duly constituted governmental authority; (ii)the exchange of goods and merchandise between the stores of the Licensee, if any, where such exchange of goods or merchandise is made solely for the convenient operation of the business of the Licensee and not for the purpose of consummating a sale which has previously been made or agreed to be made at, in, from, or upon the Licence Area or for the purpose of depriving the Licensor of the benefit of a sale which otherwise would be made at, in, from, or upon the Licence Area; (iii)the Licensee’s original cost of returns to suppliers or to manufacturers;

(iv)the amount of merchandise sold when such merchandise is thereafter returned by the purchaser and accepted by the Licensee, and a complete credit is given to the purchaser; and (v)the selling price of gift or merchandise certificates or coupons sold other than from the Licence Area, provided that such gift or merchandise certificates or coupons shall be included in the calculation of Gross Revenue at the time of their redemption. (vi)Each sale upon an installment or credit basis shall be treated as a sale for the full price in the month in which that sale is made regardless of the time when the Licensee receives payment, whether full or partial, from its customer;

(d)”Lands” means as hereinbefore defined in recital A; (e)”Licence Year” means a 12-month period commencing with the first day of January in one calendar year and ending on the last day of December of that year, providing that the first Licence Year shall commence on the Commencement Date of Term and end on the last day of December next following and the last Licence Year shall end on the last day of the Term and commence on the first day of January preceding that date; (f)”Licence Area” means Licence Area A and Licence Area B; (g)”Licence Area A” means those portions of the building located on the Lands shown highlighted in pink and marked as Area A.

Concession and Area A Storage room, which area is approximately 141. 9 sq. ft. ; (h)”Licence Area B” means those portions of the building located on the Lands shown highlighted in yellow and marked as Area B. Seating Area; (i)”Minimum Rental” means the minimum annual rental reserved hereunder payable by the Licensee; (j)”Product” means coffee, tea, soft drinks, juices, pastries, sandwiches and related items as specified in the menu attached as Schedule “C” which menu may be amended from time to time with the agreement of the Licensor and the Licensee; (k)”Percentage Rental” means the percentage rental reserved hereunder and payable by the Licensee;

(l)”Real Property Taxes” means all taxes, rates and assessments, whether general or specially levied or assessed for municipal, school, general or any other purposes by any lawful government authority payable by the Landlord in respect of the Demised Premises and shall include any other taxes payable by the Landlord which in the future are levied in lieu of or in addition to such taxes, rates and assessments the whole as finally determined for each calendar year as a result of assessment, appeal or judicial review, and shall include any legal fees, or appraisers fees incurred by the Landlord in respect of such final determination.

(m)”Rental” means Additional Rental, Percentage Rental, if any, and Minimum Rental; and (n)”Term” means _______ (__) years commencing on the Commencement Date of the Term and ending on the _____ day of ________, 20__. 2.

The Licensor hereby grants to the Licensee a licence to occupy and use Licence Area A on an exclusive basis and Licence Area B on a non-exclusive basis commencing on the Commencement Date of Term for Term unless sooner terminated as hereinafter provided. 3. To use Licence Area for the retail sale of the Products and to use Licence Area B to provide a seating area for the benefit of visitors to and staff of the City Centre Library and for no other purpose during the Term.

4. The Licensor covenants and agrees to pay to the Licensor, in lawful money of Canada, on the days and at the times hereinafter specified, Rental which shall include the aggregate of the sums required to be paid: (a)Minimum Rental and Percentage Rental: The Tenant shall pay the greater of:

(i)Minimum Rental of $________ per month commencing on the Commencement Date of Term and the 1st day of each and every month thereafter throughout the Term; or (ii)the Percentage Rental which shall be ___% of Gross Revenue per Licence Year; (b).

Additional Rental Any sums, costs, expenses or other amounts from time to time due and payable by the Tenant to the Landlord or to any third persons under the provisions of this Licence, including, without limitation, all amounts payable under Section 4. 3 and Article 5 and all amounts payable by the Tenant by way of indemnity, whether expressed in this Licence to be Basic Rent or Additional Rent or not shall be treated and deemed to be Rent and the Lan.

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