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on the

lying, and being at
River, in the
Province of Ontario, and more particularly described as follows:

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(Saving, excepting and reserving nevertheless unto us, our heirs and successors, all gold, silver, lead, copper, iron and other mines or minerals which are or shall be hereafter found on or under the said lands and all trees growing or being thereon) together with all advantages and appurtenances which may during the term hereby granted be held, occupied or enjoyed therewith.

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for

To have and to hold the same with the appurtenances unto the said lessee-, the full end and term of twenty years to be computed from the day of one thousand nine hundred and yielding and paying unto us, our heirs and successors in advance at the Treasury Department, Toronto, yearly and every year during the said term hereby granted in lawful money of Canada the sum of dollars for the first of such payments to be made at or before the execution or delivery of these presents, and subsequent payments on the

day of

in advance in each and every year thereafter with the right of renewal of the said lease for two further and successive terms of ten years each upon such terms and conditions and at such rental as may be agreed upon or fixed or determined by the Minister at the time of such renewal or renewals.

Subject nevertheless to and this lease is made upon the provisions, conditions, and stipulations following, that is to say:

of not less than

1. The said lessee- shall develop and utilize the water privilege situated on the lands hereby demised by the construction of the necessary works, the location of water wheels and the installation of suitable and necessary plant and machinery en the said lands for the generation of electricity, the compression of air or the production of some other form of power or force by means of the water flowing in or over that portion of the bed of the River situated on the lands hereby demised to the extent horse power within years from the date hereof. 2. The said lessee shall use the power so developed in the operation of machinery or some other commercial, mechanical, or industrial purpose, or if the said power so developed or any part thereof, shall not be required for such purpose or purposes by the said lessee- he shall furnish to any person, company, or corporation requiring the same power up to the amount of power hereby required to be developed or such lesser quantity as shall be actually required or in demand, or if a greater quantity of power shall be developed by the said lessee- than the quantity which it is provided herein shall be developed, then up to the amount of power so developed. Upon report being made by the Hydro-Electric Power Commission of Ontario to the LieutenantGovernor in Council that the water privilege aforesaid has not been developed and utilized to the full extent of its capacity by the works constructed or the water wheels, plant, and machinery installed by the said lessee-and that there is a bona fide demand for power in excess of the quantity of power developed and utilized by the said lesseewhich might in whole or in part be supplied from the water privilege aforesaid, then the Lieutenant-Governor in Council may by Order in Council require the said lesseeto develop and render available for use the additional quantity of power so shown to be undeveloped and capable of development or any part thereof, by the construction of the necessary works, the location of water wheels and the installation of suitable and necessary plant and machinery on the said lands within a period of time to be named in the said order, and in default of compliance with the said requirement the Lieutenant governor in council may order and direct that this lease shall be forfeited and cancelled and the same shall be forfeited and cancelled accordingly.

3. Should the lessee- or any person, company, or corporation receiving power from the said lessee for distribution, and any other person, company, or corporation desirous of obtaining power as aforeasid fail to agree upon the rate or price to be paid for the same, or the terms and conditions for supplying the same, either party may submit the matter to the said hydroelectric power commission, and any order made by the lieutenant governor in council upon report thereon by the said hydroelectric power commission fixing and determining the said rates and conditions shall be final and conclusive and binding upon all parties concerned.

4. In case of submission to the said hydroelectric power commission, as in paragraph three hereof mentioned, the said lessee, if so required by the said hydroelectric power commission, shall produce all books, accounts, records and statements, verified by affidavit, of the cost of constructing, equipping, and maintaining the works for the development of the said water privilege hereby demised, and delivering the power therefrom.

5. For the purpose of ascertaining the quantity of power actually developed or capable of development from the water privilege aforesaid or the amount of rental payable hereunder by the said lessee- the said hydroelectric power commission or any engineer appointed by it for that purpose shall at all times have authority to

enter upon the said lands hereby demised or any buildings or works erected thereon or any part thereof, or any other lands, buildings or works on or in or by means of which power from the said privilege is developed, and examine and inspect the same, and take measurements and make observations, and shall have free access to all books, plans or records bearing on the said quantity of power, and any calculation of the quantity of power developed or capable of development from the said water privilege made by the said hydroelectric power commission or by such engineer shall be binding upon the said lessee, and rent shall thereafter be paid and is hereby reserved at the per horsepower per annum for the quantity of power developed as deter

rate of

mined by the said calculation.

6. During the construction of the works for the development and utilization of the water privilege hereby demised, the said hydroelectric power commission or any engineer appointed by it for the purpose shall have free access to all parts of the works for the purpose of inspecting the same and of ascertaining that the construction thereof is in accordance with the plans and specifications approved by the said commission. 7. The granting of these presents shall not interfere with, lessen or restrict the right of timber owners or others to drive their logs or timber down the said River, or that part of it hereby demised; and if any dam, weir or other structure be erected or built in connection with the development of the water power situated on the premises hereby demised with the object, intention or effect of damming the water or impeding the flow thereof, full and proper provision as now by law required shall be made by the said lessee- for the safe and convenient passage of logs and timber over the same.

8. Upon complaint in writing being made that any municipal corporation is granting bonuses by supplying power, light, or heat below cost to manufacturers or others, whether the said corporation is the lessee of the water privilege hereby demised or is receiving power therefrom from or through such lessee, the lieutenant governor in council may refer the matter to the said hydroelectric power commission, who may dispose of the same in manner provided by chapter fifteen of the Ontario Statutes of 1906, or any amendment thereto.

9. The said lessee— shall, whenever so required by the proper officer or authority in that behalf, erect and maintain a durable and efficient fishway for the free passage of fish at all times and seasons.

10. During the continuance of this lease the said lessee-shall keep and maintain all dams, weirs, tunnels, races, flumes, sluices, pits and other structures and works necessary for the development and use of the water power or privilege aforesaid in good repair and condition and shall not wilfully or otherwise injure or destroy the same or any part thereof, but at the expiry or sooner determination thereof shall leave all such structures and works in good repair and condition, reasonable use and wear thereof and damage by fire or tempest only excepted, and so that their subsequent usefulness shall not be lessened by any act of the said lessee-.

11. The lieutenant governor in council may cancel this lease for nonpayment of the rent hereby reserved as aforesaid within ninety days after the time the same is payable, whether the same has been demanded or not, or upon report by the said hydroelectric power commission that the conditions as to construction of the works or the development or supply of power have not been complied with or that at any time after the water privilege has been developed either in whole or to the extent to which the lessee-bound or required to develop the same, the said lessee— ha— continuously failed or neglected for the space of one year effectually to produce power from the said privilege either for his or their own use or for that of other persons unless hindered by unaviodable accident, or that the lessee- ha- failed or neglected to comply with any of the conditions hereof or any order in council respecting any matter or thing arising hereunder concerning which such order is made, and publication in the Ontario Gazette of any order in council cancelling this lease shall be sufficient proof that the same has been duly and lawfully cancelled. Provided that ten days' notice in writing shall be given the said lessee- before any such cancellation in order that may have an opportunity of being heard should

so desire.

The acceptance of rent hereunder shall not be or be deemed to be a waiver of any of the terms or conditions herein expressed concerning the construction of works, development or supply of power or otherwise.

12. The said lessee shall not destroy or obstruct the navigation of the said River or any other river, stream, lake, or other body of water flowing into or out of the same, but shall provide such locks, canals, passages, and other means as may be necessary for the proper and safe surmounting or passing of any dam, weir, or other work made or erected by the said lessee- and as may be required for purposes of navigation by the Government of Canada.

13. The said lessee shall not have the power or authority under these presents to overflow or cause to be overflowed any land or lands other than those hereby demised, and it is distinctly understood and agreed that should any lands other than those hereby demised be overflowed or damaged, the Crown or the Government of Ontario shall in no wise be responsible for damage done thereto to the owner or owners thereof.

14. The power and authority to acquire water powers and works by purchase, lease, or otherwise, or without the consent of the owners thereof conferred upon the said power commission by chapter fifteen of the Ontario Statutes of 1906, shall be exercisable by the said power commission in respect of the lands and water privilege hereby demised and any and all works connected therewith.

15. At the expiry or sooner determination of this lease the said lands hereby demised, together with the water power or privilege aforesaid, shall revert to and become the property of us, our heirs and successors as fully as if these presents had never been executed, together with all buildings, dams, weirs, tunnels, races, flumes, sluices, pits, and other structures and works situate thereon, provided nevertheless that within a reasonable time to be fixed by the said power commission the said lessee-may remove all machinery employed by- in the development or use of the said water power or privilege, but failing such removal within the time so fixed, such machinery shall become the property of and be vested in us, our heirs and successors, to all intents and purposes whatsoever. Provided that where any such building or structures are of a permanent character and necessary or useful for the proper development and utilization of the water privilege aforesaid, the lieutenant governor in council may, upon report in that behalf by the said hydroelectric power commission, pay the lessee by way of compensation thereof and purchase thereof, such sum or sums as he may deem proper upon the same being appropriated for the purpose ty, the legislative assembly of the Province.

16. The minister referred to herein shall be and incluo the minister of lands, forests and mines, or any minister of the Crown performing t duties of the minister

of lands, forests and mines in his absence or during a vancan
the minister may refer any and all matters and things arising unde
in connection herewith to the hydroelectric power commission of Onu
gation, consideration and report.

that office; and by virtue of or for investi

17. The granting hereof or the requirements herein as to the development of power from the said water privilege shall not be or be deemed to be a guarantee by the said minister of the government of Ontario that the said or any quantity of power is capable of being generated from the said privilege, and the said lessee shall have no recourse against the said minister or the said government in case the said or any quantity of power can not be generated therefrom.

18. These presents and the term or terms hereby created shall not be assigned or transferred without the written consent of our said minister or of some officer duly authorized by him or by general regulation to give such consent.

19. The word "lessee" herein shall mean and include the lessee - herein named and heirs, executors, administrators and assigns, and in the case of an incorporated company its successors and assigns.

And lastly this lease is accepted by the lessee- subject to the right of the Government of Canada, if any, to control the navigation of the said River, and is hereby understood and agreed that the lessee shall have no recourse against the Government of Ontario by reason of any damage that may be hereafter sustained by him in consequence of any works constructed or to be constructed or authorized by the said Government of Canada in connection with the improvement of the navigation of the said River or otherwise howsoever.

Given under the great seal of our Province of Ontario, witness: His honour, John Strathearn Hendrie, commander of our Royal Victorian Order, a lieutenant colonel in our militia of Canada, &c., lieutenant governor of our Province of Ontario.

At our Government house, in our city of Toronto, in our Province of Ontario, this day of -, in the year of our Lord one thousand nine hundred and year of our reign.

and in the

By command of the lieutenant governor in council.

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