EXHIBIT 7
Morguard ▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇.
Investment Limited Suite 200
[STAMP} Toronto, Ontario
November 12, 2003 M2J 5C1
Tel: (▇▇▇) ▇▇▇-▇▇▇▇
Fax: (▇▇▇) ▇▇▇-▇▇▇▇
▇▇▇.▇▇▇▇▇▇▇▇.▇▇▇
▇▇. ▇▇▇ ▇▇▇▇▇▇▇ BY FAX: (▇▇▇) ▇▇▇-▇▇▇▇
c/o SUTTON GROUP - ADMIRAL REALTY INC.
▇▇▇▇ ▇▇▇▇▇▇▇ ▇▇▇▇▇▇, ▇.
▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇
▇▇▇ ▇▇▇
Attention ▇▇. ▇▇▇ ▇▇▇▇▇▇▇
Dear ▇▇. ▇▇▇▇▇▇▇
Re: Security Deposit
Rent Shield Lease proposal
▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇., ▇▇▇▇▇ 200
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We wish to reiterate the terms for the Security Deposit required by the Landlord
in conjunction with the Lease Proposal dated October 2, 2003 for Suite 200 at
▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇.
The Landlord requires a security Deposit in the amount of $75,000.00 which will
be held by the Landlord for the first year of the Term. This amount of the
Security Deposit would then be reduced by 25% at the commencement of each
subsequent year of the Term. It is acknowledged that there is no first or last
months deposit.
We would ask that you have your client acknowledge acceptance of the foregoing
by signing a copy of this letter and returning same to the undersigned by no
later than 4:00 pm, Tuesday, November 13th, 2003.
Please note that the Lease Proposal is still conditional upon Landlord's Senior
Management approval.
We look forward to your positive response.
Yours truly,
MORGUARD INVESTMENTS LIMITED
/s/ ▇▇▇▇ ▇. ▇▇▇▇▇▇▇
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▇▇▇▇ ▇. ▇▇▇▇▇▇▇▇
Director of Leasing, Office and Industrial
JRB/apb
I/We acknowledge acceptance of the foregoing.
RENTSHIELD CORP.
Per:
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Name
Title
MORGUARD
Investments Limited
TERM SHEET
▇▇▇ ▇▇▇▇▇▇▇▇ ▇▇▇▇▇▇▇▇▇
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LOCATION: Suite #200 on the 2nd floor at ▇▇▇ ▇▇▇▇▇▇▇▇
▇▇▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇, ▇▇▇▇▇▇▇.
SIZE: 9,642 rentable square feet as shown hatched on
attached Schedule A.
TERM: 5 Years, commencing January 1, 2004 and expiring
December 31, 2008
BASIC RENTAL RATE: Years 1 to 2 $ 6.50 per rentable square foot
per annum net.
Year 3 $ 8.50 per rentable square foot
per annum net.
Year 4 $10.50 per rentable square foot
per annum net.
Year 5 $11.50 per rentable square foot
per annum net.
ADDITIONAL RENTAL
TO DECEMBER 31, 2003: $ 7.28 per square foot - Operating Costs estimated.
$ 1.44 per square foot - Hydro Costs estimated
$ 7.56 per square foot - Realty Taxes estimated
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$16.28
LEASE AGREEMENT The Lease shall be drawn on the Landlord's current
Standard Form and executed by the Tenant prior to
the commencement of any construction and the Term.
(A copy is attached hereto as Schedule B).
PARKING: 30 parking stalls included in base rent.
OPTION: Tenant shall be granted an option for a further
term of 5 years as outlined on Schedule C.
EARLY OCCUPANCY: The Tenant shall have early occupancy of the Lease
Premises on the date which is the later of
December 1, 2003 and the date all documentation
required by the Landlord has been fully executed
by all parties in accordance with the provisions
of Paragraph 3.02 of the Lease, save as to payment
of Rent. The Tenant shall, however be responsible
for the cost of utilities supplied to the Leased
Premises as of the date possession is given to
the Tenant.
CONDITION OF LEASED
PREMISES: The Leased Premises shall be delivered by the
Landlord to the Tenant on an "as is" basis and
the Landlord shall not be required to do any work
prior to delivering possession of the Leased
Premises to the Tenant. Any other changes to the
Leased Premises required by the Tenant will be
performed in accordance with clause 7.04 of the
Lease and shall be completed at the Tenant's
sole expense.
LEASEHOLD IMPROVEMENTS: In the event that the Tenant wishes to install or
make additional improvements to the premises, the
Landlord shall make said improvements to a
maximum cost of $5.00 per square foot and said
costs shall be amortized over the term of the
term of the lease using an interest rate factor
of 10% and the basic rental rate shall be adjusted
accordingly.
SPACE PLANNING: The Landlord shall pay up to 8 cents per square
foot an initial feasibility plan to be prepared by
a space planner of the Tenant's choice, subject to
the Landlords approval.
INDUCEMENT: The Landlord shall provide a gross rent free
period, being the first six months of the term,
during which time there shall be no basic or
additional rent payable. The Tenant shall however
be bound by all other terms and conditions
contained in this lease during said rent free
period.
LANDLORD'S CONDITION: This proposal is conditional for a period of 10
business days from mutual acceptance, upon space
available, ▇▇▇▇▇▇▇▇'s Senior Management approval
and satisfactory credit check.
NON-DISCLOSURE/
CONFIDENTIALITY: The Tenant agrees that any information provided by
the Landlord or its agent, including but not
limited to any quotes of net rental rates,
allowances, and any matters pertaining to the
financial aspects of this proposal shall be
retained in confidence, and will cause its
employees, principals, representatives and agents
to treat and retain in confidence, the
information.
The undersigned acknowledges and agrees to the above terms and conditions.
Dated at Toronto, Ontario, this 2nd day of October, 2003.
RENT SHIELD CORP.
per: /s/ [ILLEGIBLE] General Counsel
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Name [ILLEGIBLE] Title
SCHEDULE A
[FLOOR PLAN]
[RENTAL CHECK]