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THIS AGREEMENT MADE THIS 20th day of September. 2004.

BETWEEN:

TRACKCORPCANADA INC. and 670703 ONTARIO INC.

hereinafter called the Owner


of the FIRST PART

AND:

THE CORPORATION OF THE TOWNSHIP OF GREATER MADAWASKA

hereinafter called the Township


of the SECOND PART

WHEREAS the Owner is the registered owner of the lands described in Schedule A attached hereto,
(hereinafter referred to as the Land(s));

AND WHEREAS the Municipality is authorized by Section 41 of the Planning Act, R.S.O. 1990,
Ch.P.13, as amended, to designate areas as site plan control areas and to subsequently enter into
agreements with respect to the conditions of development of lands within a site plan control area;

AND WHEREAS pursuant to the authority vested in it by the said Act, the Township has, by Bylaw
16-95, designated the Land(s), being within the municipal limits, as a site plan control area;

AND WHEREAS by Section 41(7) of the said Act, a Township is authorized to require of an owner,
and to ensure by one or more agreements, the following:

(a) that the Owner provide certain facilities, works or matters mentioned in clause (a) of
the said section and subsection;
(b) that the Owner provide maintenance of the said facilities, works or matters;
(c) that the Owner provide the plans and drawings referred to in subsection (4) of the
said Act subject to the Township's approval of the same;

AND WHEREAS the Owner has applied to the Township to develop the Land(s);

AND WHEREAS the Council of the Township has authorized the Reeve and the Clerk/Treasurer to
enter into an Agreement with the Owner pursuant to the aforesaid powers vested in it;

NOW THEREFORE WITNESSETH that in consideration of the foregoing, and the mutual terms,
provisos and covenants of the parties hereto, the parties agree as follows:

1. INTERPRETATION:

1.01 In this Agreement:


Council shall mean the elected Council of the Township of Greater Madawaska, from time
to time.

Default means and includes deemed default, delay, neglect, failure, deviation, misfeasance
and/or abandonment.

Develop, Development means and refers to improvements, construction, erection,


demolition, paving, landscape and any and all works, and/or parts of the foregoing and
maintenance of the forgoing.

Municipal Engineer shall mean the person so designated by the Township.

Owner includes an individual, an association, a partnership or a corporation or any


employee, agent or contractor carrying out the Development for the Owner.

Securities means and refers to all cash, deposits, letters of credit, lands or any other property
intended to secure the Owner’s obligations pursuant to this Agreement.

2.0 SCHEDULES:

The following schedules are attached hereto and form part of this Agreement and the Owner
shall satisfy, comply with and perform all of the requirements and obligations arising
therefrom:

A - Description of the Land(s)


B1 - Approved Site Plan
(Drawing No. 1 of Project No.636-00457, prepared by Stantec Consulting Ltd.)
B2 - Noise Attenuation Site Plan
B3 - Improvements Required to Upgrade Wilson Farm Road
B4 - Approved Site Grading and Drainage Plan
(Drawing No.______)
C - Financial Requirements
D - Time Requirements

2.01 All Schedules attached hereto shall form part of this Agreement and the Owner shall satisfy,
comply with and perform all of the requirements and obligations arising therefrom.

3.0 TITLE:

3.01 The Owner hereby warrants and covenants that the Owner is the unencumbered registered
Owner of the Land(s) and that the Land(s) are properly so described in Schedule A. This
agreement shall be registered against title to the Land(s) at the expense of the Owner and in
priority to any charges, liens, or encumbrances.

4.0 DEVELOPMENT:

4.01 The Owner shall strictly Develop the Land(s) in accordance with the site plans, approved by
the Township, and as attached hereto as Schedules B1, B2, B3 and B4, which plans were
prepared by Stantec Consulting Ltd., and within the time provided for in Schedule E attached
hereto.

4.02 The Owner shall not proceed with Development of the Land(s), without satisfaction and
compliance with all relevant Municipal bylaws, Federal and/or Provincial statutes and/or
regulations.
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Corporation of the Township of Greater Madawaska -

4.03 The Owner acknowledges that it is a significant object of the site plans to reduce and control
noise originating from the lands and to satisfy MOE noise criteria as a minimum. Therefore,
the Owner covenants that it will develop and maintain the works so as to meet the said MOE
noise criteria as a minimum standard at all times.

5.0 BUILDING PERMITS:

5.01 The Township shall not be obliged, nor compelled to issue any building permits for the
Development until:

(a) the provisions of Paragraph 3 have been complied with, and


(b) the Securities referred to in Paragraph 6 have been provided to the Township;
(c) all outstanding taxes, assessments and Development charges have been paid;
(d) any outstanding Default arising from this Agreement has been remedied.

6.0 SECURITIES:

6.01 Before any Development permitted by this Agreement, the Owner shall deposit with the
Township any or either of, at the option of the Township, cash, negotiable securities,
Irrevocable Letters of Credit, satisfactory to the Township, in form and content, equivalent to
one hundred per cent (100%) of the estimated cost of Development, as set out in Schedule
C.

6.02 The Owner covenants to comply with all of the financial requirements provided for herein
and set out in Schedule C.

6.03 The Township shall not be obliged to invest any Securities provided, however in the event
any Securities earn interest, the interest shall be credited to the Owner's liability provided
herein.

6.04 In the event the Owner has deposited with the Township any Securities under the provisions
of this Agreement which will expire prior to the completion of all or a portion of the works
provided therefore, or any amount required to cover the maintenance period provided herein,
the Owner shall deliver to the Township, replacement Securities satisfactory to the Township
prior to any expiry date. Should the Owner not comply with this requirement, the Township
is authorized to call upon the Securities held in the amount determined by the Municipal
Engineer to meet the value of the uncompleted works or sufficient to satisfy the provisions of
Paragraph 4 and Schedule B3 of this Agreement. The Securities provided by the developer
shall acknowledge the Township's right as provided herein.

6.05 When the Municipal Engineer is satisfied that the Development, has been completed in
accordance with this Agreement, and that all Township accounts and taxes have been paid,
and maintenance requirements met, the Municipal Engineer shall forthwith report the same
to Council. If satisfied of the same, Council shall provide acceptance of any of the
Development or any part thereof as evidenced by a Resolution of Council.

6.06 On final acceptance of the Development by the Municipal Engineer, the Owner shall be
entitled to have released to it by the Township all Securities, then held by the Township
under this Agreement with the exception of ten per cent (10%) of the value of the Securities,
which shall be retained for the warranty period of one (1) year from the date of the
completion of Development.
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Corporation of the Township of Greater Madawaska -

7.0 DAMAGE TO MUNICIPAL PROPERTY:

7.01 The Owner shall repair any damage to municipal property to the satisfaction of the
Municipal Engineer.

7.02 The Owner shall keep the streets leading to, from and abutting the Land(s) free of dirt, dust
and debris resulting from or in any way attributable to the construction and Development.

8.0 DEFAULT:

8.01 If, in the opinion of the Municipal Engineer, the Owner:

(a) is not prosecuting or causing to be prosecuted the Development as provided in this


Agreement within the time specified in Schedule D, or so that they may be
completed with the said time; or
(b) is improperly performing or maintaining the said Development; or
(c) is in Default with respect to the said Development at any time; or
(d) is in Default with respect to this Agreement at any time; then
the Municipal Engineer shall promptly notify the Owner and its surety, in writing, of
such Default and if such Default be not remedied within seven (7) clear days after
delivery of such notice, then, the Municipal Engineer shall thereupon have full
authority and power to immediately remedy the Default at the sole cost and expense
of the Owner, is surety or both.

8.02 When, in the opinion of the Municipal Engineer, the Default is one of emergency, then the
remedy may be made without notice.

8.03 The cost and expense of remedy shall be calculated by the Municipal Engineer whose
judgment shall be final. It is understood and agreed that such costs and expenses shall
include an administrative fee of twenty per cent (20%) of the cost and expense, together with
a fee of thirty per cent (30%) of the said sum for the dislocation and inconvenience caused to
the Township as a result of such Default, it being hereby declared and agreed that the
assumption by the Owner of the obligations set out in this Clause is a consideration without
which the Township would not have executed this Agreement.

8.04 In the event of damage to municipal property, upon seven (7) days written clear notice and
failing remedy within the said time, the Township may exercise its remedies as provided
hereinbefore, or at its option recover the costs and expenses from the Owner's Liability
Insurance Policy.

8.05 The Township may at any time apply, the Securities or any part thereof to remedy the
Default.

9.0 SUBSEQUENT CONVEYANCES:

Intentionally deleted.
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Corporation of the Township of Greater Madawaska -

10. GENERAL:

10.01 The provisions of this Agreement shall inure to and be binding upon the parties hereto, their
heirs, successors, executors and assigns.

11.0 INTERPRETATION:

(a) The words importing singular number only shall include the plural, and vice
versa, and words importing the masculine gender shall include the feminine
gender, and words importing persons shall include firms and corporations and
vice versa.

(b) Words which have been defined in paragraph 1.01 or elsewhere in this agreement or
any schedule attached hereto shall have that defined meaning when the said words,
singular or plural are used elsewhere in this Lease or any schedule attached hereto.

(c) Unless the context otherwise requires, the word "Owner" wherever used herein,
shall be construed to include and shall mean the executors, administrators, successors
and/or assigns of the said "Owner".

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

SIGNED, SEALED AND DELIVERED

TRACKCORPCANADA INC.

Per: ________________________________________
I have the authority to bind the Corporation.

670703 ONTARIO INC.

Per: ________________________________________
I have the authority to bind the Corporation

CORPORATION OF THE TOWNSHIP OF


GREATER MADAWASKA

__________________________
Isobel Kristijan, Reeve

___________________________
Maureen Brennan, Acting Clerk/Treasurer
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Corporation of the Township of Greater Madawaska -

Schedule A – Description of Land(s)

Lands Owned by TrackcorpCanada Inc.

1. Lots 13, 14 and 15, Concession 7, Lots 13, 14 and 15, Concession 8, geographic Township of
Bagot, Township of Greater Madawaska, being PIN 57353-0040 LT.

Lands Owned by 670703 Ontario Inc.

1. Part of Lots 11 & 12, Concession 7, Part of Lots 11 &12, Concession 8, as in R370230, Bagot;
s/t BG2678, BG2818, BG2912, Blythfield Brougham; Township of Greater Madawaska, being
PIN 57353-0039 LT.
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Corporation of the Township of Greater Madawaska -

Schedule B1 – Approved Site Plan

(Drawing No. 1 of Project No.636-00457, prepared by Stantec Consulting Ltd.)


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Corporation of the Township of Greater Madawaska -

Schedule B2 - Noise Attenuation Site Plan


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Corporation of the Township of Greater Madawaska -

Schedule B3 - Improvements Required to be Made by the Owner


to Upgrade Wilson Farm Road

1. A topographic survey is to be prepared of the road and adjacent land (10 m each side of road
centre line) to provide a record of the existing road vertical and horizontal alignment.

2. Survey is to include elevation and location of any existing ditches or drainage structures

3. A proposed posted speed for the road shall be defined.

4. Verify (using the survey information collected) that the road meets the standards for
minimum radius and sightlines for the road design speed selected.

5. Test pits are to be excavated at 100m intervals to confirm the existing road construction.
An alternative to test pits would be to construct boreholes.

6. The road shall be widened to provide a minimum of 3m travel lane in each direction and
the road shall be constructed with appropriate rounding at the edges of the road.

7. Drainage is to be improved by construction of roadside ditches with appropriate culvert


crossings as determined by a professional engineer.

8. Signs are to be installed indicating posted speed for the road.

9. Vegetation is to be cleared along the edge of the road to remove encroachments and
provide proper sightlines.

10. Gates are to be installed at the entrance to the gravel pit to prevent access.

11. The surface treatment proposed by the applicant is suitable if placed on a suitable granular
structure. The construction of the proposed surface treatment on a poor base will lead to
rapid degradation of the road surface and additional maintenance effort and cost.
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Corporation of the Township of Greater Madawaska -

Schedule B4 - Approved Site Grading and Drainage Plan

(Drawing No.______)
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Corporation of the Township of Greater Madawaska -

Schedule C - Financial Requirements

The amount of $122,400.00 in cash or by letter of credit to be provided to the Township in


accordance with section 6 of this Agreement.

Cost Estimate for Security

Works to be provided by Owner in accordance with Schedule B3 – Improvements to the Wilson


Farm Road.

Description Cost ($)

Road widening with Granular Material $ 26,500.00

Ditching $ 40,000.00

Culverts $ 10,000.00

Surface Treatment $ 32,000.00

Signs $ 2,400.00

Grates at Pit $ 1,000.00

Brushing $ 10,000.00

Protection for Tower $ 500.00

TOTAL: $122,400.00
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Corporation of the Township of Greater Madawaska -

Schedule D - Time Requirements

The development as outlined on Schedules B and C shall be completed by the owners by


September 30th, 2005.

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