Shop Lease and Prepaid Rent Agreement

Plain-language agreement for the Rock Liners shop space. Dated October 28, 2026.

Fill in the blank lines and tick the boxes before signing. Both people sign at the bottom and keep a copy. A photo or scan of the signed page counts as the original.

1. Rent

   Rent is $1,100 per month, due on the 1st of each month.

   The Landlord does not charge HST.

2. Free use until January, then prepaid rent

   The Tenant pays the Landlord $6,000 on signing. In exchange:

   • The Tenant may use the shop from October 28, 2026 to December 31, 2026 at no charge.
   • The $6,000 is prepaid rent applied starting January 1, 2027, as shown below.
   • The Landlord will have the shop fully open and ready for the Tenant's full use by November 25, 2026, including the space for the spray booth, equipment and vehicles. If it is not, the Tenant may end this lease and the Landlord refunds the full $6,000 within 15 days.
   • The Landlord will have the driveway and shop cleaned up and cleared of the Landlord's items by January 1, 2027.

   January 1 to May 31, 2027 (5 months at $1,100), fully paid	$5,500
   Credit toward June 2027 rent	$500
   Total prepaid	$6,000
   First regular payment: June 1, 2027 (June rent less the $500 credit)	$600
   Regular rent from July 1, 2027	$1,100 a month

   The $6,000 is rent paid in advance. It is not a damage deposit and the Landlord will not use it for anything else.

3. How long the lease runs

   The lease runs month to month from the start date. There is no fixed multi-year term and no personal guarantee by Spencer MacDuffee or anyone else.

   • Tenant may end the lease at any time with 60 days' written notice. If the Tenant chooses to leave before the prepaid months are used, the unused prepaid rent is not refunded.
   • Landlord may not end the lease before June 30, 2027 unless the Tenant breaks the lease under section 11. After that, the Landlord must give at least 90 days' written notice.
   • If the Landlord ends the lease, sells the building to a buyer who will not honour this lease, or the shop can no longer be used through no fault of the Tenant, the Landlord refunds any unused prepaid rent within 15 days.
   • The Tenant may keep the shop at $1,100 a month until at least December 31, 2027. Any increase after that needs 90 days' written notice.

4. What the shop is used for

   A spray-in truck bed liner and coating shop. This includes: spraying polyurea and coatings inside an enclosed portable spray booth, an air compressor and air dryer, storing drums of coating material, prepping and sanding vehicles, and customer and dealer vehicles parked inside or out front while being worked on. The Tenant will follow fire, safety and town rules for this use.

5. Changes the Tenant may make

   At the Tenant's own cost, the Tenant may:

   • have a licensed electrician add circuits and disconnects for the shop equipment;
   • cut one exhaust vent through a wall or window for the spray booth, sealed and weatherproofed;
   • put up a business sign on the building or bay door, following town sign rules.

   Electrical work stays with the building when the Tenant leaves unless both agree otherwise. When the Tenant leaves, it will cover or patch the vent opening.

6. Access

   The Tenant gets keys and has access 24 hours a day, 7 days a week. The Landlord gives at least 24 hours' notice before entering, except in an emergency.

7. Repairs

   The Landlord keeps the roof, walls, structure, heating unit, plumbing and the existing electrical service in working order. The Tenant keeps the inside clean and repairs any damage the Tenant causes.

8. Insurance

   The Tenant carries business liability insurance of at least $2,000,000 and adds the Landlord as an additional insured. The Landlord insures the building. Each side is responsible for insuring its own property.

9. Tenant's equipment

   The sprayer, compressor, dryer, spray booth, drums, tools and everything else the Tenant brings in belong to the Tenant. The Tenant may remove them at any time and when the lease ends. The Landlord has no claim on them.

10. Passing the lease to a related company

    The Tenant may transfer this lease, or share the shop, with a company that Rock Liners Inc. owns or co-owns (for example a Huntsville shop company owned with a partner) without needing the Landlord's permission, by giving written notice. Any other transfer needs the Landlord's written consent, which will not be unreasonably refused.

11. If someone breaks the agreement

    Before ending the lease or taking any action, a side must give written notice of the problem and 15 days to fix it. Text or email to the contacts on this page counts as written notice.

12. Sale of the building

    If the Landlord sells the building, the Landlord will make this lease part of the sale so the new owner honours it. If that is not possible, section 3 applies and unused prepaid rent is refunded.

13. The rest

    This page is the whole agreement. Changes must be in writing and signed by both. Ontario law applies, including the Commercial Tenancies Act.

Prepared for Rock Liners Inc. as a simple starting agreement. It is general information, not legal advice; for anything unusual, have a lawyer look it over.