1

LICENCE OF OCCUPATION

(hereinafter called the “Licence”)

The parties to this Licence datedare:

name of Licensors:

parties Township of Madawaska Valley

Licensee:Eastern Ontario Trails Alliance

(hereinafter called the “Licensee”)

In consideration of mutual undertakings herein and the sum

of $2.00 receipt of which is acknowledged and subject to the terms and conditions in this Licence, the Owners, hereby delegate, licence and give full authority to the Licensee, to enter upon, occupy, use and enjoy the lands, described below, during the term of the License for the purpose of:

Management by the Eastern Ontario Trails Alliance which shall respect:

(a)The preservation of the continuity of the corridor

for tourism and other compatible economic uses;

(b)The management of the recreational corridor(s) as

a multi-use facility, representing the interests of recreational users, adjoining land owners and other interested groups;

(c)The development of the recreational corridor(s) as a recreational attraction contributing to the tourism and economy of the Eastern Ontario Region;

(d)The preservation and enhancement of the natural and cultural/human heritage along the corridor(s).

termThe effective commencement date of this Licence is the

date of execution by the Eastern Ontario Trails Alliance and it will be in effect for three years from that date, effective from May 1 to November 1 of each year. Any municipality wishing to withdraw from the License of Occupation shall serve notice of such intention a minimum of six months prior to the proposed date of withdrawal.

licensedThe lands forming the subject matter of this Licence

land

the former CN abandoned rail line with the limits of the Township of Madawaska Valley, namely from Wilno (at approximately Wilno North Road) to immediately south of Aylen Lake Road.

OwnersThe Eastern Ontario Trails Alliance Steering Committee

delegatewill act as the Owners’ delegate.

TERMS AND CONDITIONS

The parties agree to the following terms and conditions:

licence1.This Licence gives the Licensee only the right to use the land for

to occupythe purpose specified above, and does not convey any right, title or

onlyinterest in the land or in any trees standing, growing or being on

the land, now and in the future, or in any minerals, sand, gravel or similar materials, in, on, or under the land. Use of any such

materials, unless authorized herein, must have separate written approval from the Owners. Without limiting the generality of the

foregoing, this agreement is a licence and is not a grant, land use permit, or lease of land; and it does not entitle the Licensee to any permanent interest in the land whatsoever.

existing2.This Licence does not grant any rights in and over any road or any

roads nothighways crossing the land as at the date of this Licence.

affected

reservation3.The Owners reserve the right to use portions of the land for roads of future as required from time to time by the Owners.

road rights

prior4.Any building, structure, or works, to be erected on the land or any

writtenalteration, renovation, enlargement or reconstruction of

approvalimprovements, or alterations whatsoever, must be approved in

for work onwriting by the Owners, or their delegate, and any other applicable

or to landagencies or authorities. The application to the Owners, or their

delegates, for approval must contain a written description of the

work and the Licensee’s evaluation of the cost of the work.

duty to5.The Licensee shall maintain the land in a clean, sanitary and fire-

keepsafe condition and dispose of all garbage in an approved manner

cleanand, without limiting the generality of the foregoing, shall comply

at all times with all municipal, regional, provincial and federal

government environmental Acts and regulations with respect to its

operations.

access6.Access to the land by users, and quality of that access, is strictly

the responsibility of the Licensee. Prior written approval from the

Owners, or their delegate, must be obtained for any construction of

any road or other access facilities. The Owners reserve the right to

enter and inspect the land and the right of access for Owners’ purposes.

Licensee7.The Licensee shall pay all taxes, rates, duties and assessments that

to paymay be levied against the land, in the manner prescribed by the

taxes,taxing authority.

etc.

Licensee8.The Licensee covenants to indemnify and forever save and keep

toharmless the Owners, its officers, servants and agents from and

indemnifyagainst any and all claims, demands, suits, actions, damages,

Ownerslosses, costs or expenses arising out of any injury to persons,

including death, or loss or damage to property which may be or be alleged to be caused by or suffered as a result of or in any manner associated with the exercise of any right or privilege granted to the Licensee by this Licence. The Licensee shall obtain and keep in

force during the term of this licence comprehensive general liability insurance providing coverage in the amount of $5 million per occurrence and naming the owner as coinsureds. The policy will contain a cross liability clause. Proof of insurance will be provided to the Owners upon request.

written9.This Licence or any of the rights herein or in the lands which shall

approvalcreate an interest of over one year shall not be assigned,

fortransferred, subgranted, mortgaged or pledged to anyone without

assignment orthe prior written approval of the Owners, or their delegate. No

transfersuch assignment, transfer, sub-grant, mortgage or pledge will have any force effect even if it occurs with the knowledge or acquiescence of the Owners or their delegate if it is not first authorized in writing.

automatic 10.This Licence will automatically terminate, and all rights of the

terminationLicensee will expire, on the termination date, or bankruptcy or insolvency of the Licensee or on the winding up or dissolution of the Licensee’s affairs. This condition cannot be waived by the Owners and, if further use of the land is desired, an application for a new licence must be submitted, and approved.

revocation 11.The owners will give notice in writing to the Licensee of any

ofcontravention of any term or condition of this Licence which

Licencecomes to their attention and the Licensee will remedy the contravention within thirty days of receipt of notice. If the Licensee fails to do so within the time specified, the Licence will

automatically terminate on the expiration of the thirty day period.

Notwithstanding this provision, should it be brought to the attention of the Steering Committee that there are unsafe conditions or hazardous arrangements existing within the

corridor(s) the Licensee shall undertake to rectify the situation immediately upon being notified of the situation by either party.

disposition 12.Upon the expiration or termination of this Licence:

of assets on

termination(i)all improvements, property or other assets remaining on the land automatically become the property of the Owners and

the Owners have no obligation whatsoever to pay compensation for them and the Owners assume no liability for them;

(ii)the Licensee may, with the prior written approval of the

Owners, or their delegates, or shall, at the written request of the Owners, or their delegates, remove the improvements, property or other assets from the land and leave the land in a clean and safe condition, restored as much as possible to its original state except where the requirement to restore is waived in writing by the Owners, or their delegates;

(iii)where the Licensee fails to remove the improvements,

property or other assets from the land or fails to restore the land to a clean and safe condition within a reasonable time as determined by the Owners, or their delegates, the Licensee will pay to the Owners, any costs incurred by the Owners in selling, disposing of or destroying the improvements, property or other assets and in restoring the site to a clean and safe condition.

Licence13.The Licensee acknowledges and confirms that:

confers

no future(i)upon the expiration or termination of this Licence, the decision to

rightsissue a new Licence is at the sole discretion of the Owners, or their delegates, and the Licensee has no right to, nor reasonable

expectation of the issuance of a new Licence based on prior use of

the land;

(ii)the successive issuance of any Licence or Licences for the use of

the land will not create any future rights and interests whatsoever in the land in the Licensee or anyone else;

(iii)should any improvements whatsoever be made to or on the land,

this will not confer upon the Licensee any right to use the land other than within the terms of this Licence nor will it give the Licensee any right to or, any expectation of future licences;

(iv)there are no representations or warranties between the Owners, or

their delegates, and the Licensee for the use of the land; other than as herein set out.

(v)there are no conditions, other than those imposed by law, regulation or terms of this Licence, between the Owners, or their delegates,

and the Licensee for the use of the land.

notice 14.Any notice under this Licence shall be validly given to and received by the addressee if served personally or transmitted by fax or electronic mail, on the date of such personal service or transmission, or if mailed, on the third business day after the mailing of the same in Canada by prepaid post addressed:

(a)If to the Owners:

(ii)The Corporation of the Township of Madawaska Valley

PO Box 1000, 85 Bay St.

Barry’s Bay, ON

K0J 1B0

Telephone:(613) 756-2747

Fax:(613) 756-0553

(b)If to the Licensee:

Eastern Ontario Trails Alliance

255 Metcalf St

Postal Bag 1444

Tweed, ON

K0K 3J0

Telephone: (613) 478-1444

Fax: (613) 478-3325

or at such other address as either party may from time to time designate by

notice in writing to the other. In the event of disruption of postal services, all mailed notices shall be validly given and received when actually delivered to the address set forth above, or designated as aforesaid.

  1. This Licence is to be read with all changes in gender or number as required by the context.
  1. The Owners and the Licensee agree that the provisions of Schedule “A” to this Licence form a part of it as if fully incorporated herein.

IN WITNESS WHEREOF the parties have set their hands and seals.

Dated this______day of______2007.

TOWNSHIP OF MADAWASKA VALLEY

per:______

Mayor

per:______

Clerk

Dated this______day of______2007.

EASTERN ONTARIO TRAILS ALLIANCE

per:______

Chairman, Board of Directors

per:______
Co-ordinator, Eastern Ontario Trails Alliance

SCHEDULE “A”

1.The Licensee shall prepare a five (5) year management plan to cover the operation of the corridor(s). Presentation of the revised five-year plan will be made at two Open House Forums to be approved by the Steering Committee.

2.The Licensee shall prepare and submit an annual operating plan to be approved by the Township of Madawaska Valley. The operating plan is to be submitted by September 30th each year.

3.All approval requests from the Licensee shall be made in writing.

4.Eastern Ontario Trails Alliance will have stewardship of the property from May 1 to November 1 of each year. The OFSC/SnowCountry will retain stewardship during the months/dates otherwise.

5.The Township of Madawaska Valley shall assume that time is of the essence and will respond

to all requests in a timely manner. It is expected that all requests should receive

consideration by the Township at regular meetings.

6.All funds collected by the Licensee from users of the trail must flow to the benefit of the trail.

7.The Licensee shall submit a yearly report to the Township of Madawaska. This report

will include an annual audited financial statement and a yearly activity report

summary. The report is to be submitted by September 30th each year.

8.The Owners and the Licensee are deemed to be “occupiers” of the property and

therefore both entitled to control the use of the property under the Trespass to Property Act.

9.The Licensee will be responsible for signage and control of the public use of the

corridor(s).

10.The Owners shall not be obliged to fund the management or capital improvement of the corridor(s). It is expected that the Licensee shall receive funds available under specific government programs and the Licensee is entitled to raise funds through approved activities or services provided within the corridor(s). On occasion, financial requests may be made by the Licensee to each of the owners.

IN WITNESS WHEREOF the parties have set their hands and seals.

Dated this ______day of ______2007

Township of Madawaska ValleyEastern Ontario Trails Alliance

per:______per:______

Mayor Chairman

per:______per:______

CAO/ClerkGeneral Manager