AND the said spouse of the said Mortgagor, hereby consents to the transaction evidenced by this Indenture. 1. The principal sum secured by this Mortgage is $ and is repayable by the Mortgagor on demand from the Mortgagee. Interest on the principal sum outstanding from time to time, at the Loan Rate (as defined in Section 2) in effect from time to time, is payable monthly on the day of each month commencing the day of , 20 . Each payment made under this Mortgage shall be applied first to interest on the principal sum outstanding from time to time and the balance, if any, of such payment shall be applied on account of and in reduction of the principal sum. 2. Interest on the principal sum outstanding is charged at a variable rate of interest (calculated monthly not in advance, before and after default, maturity and judgement) equal to the Credit Union Basic Variable Mortgage Rate (the "Basic Mortgage Rate") from time to time plus %. Such variable rate of interest will change automatically upon any change in the Basic Mortgage Rate whether or not the Mortgagor receives the notice referred to in Section 4. Such variable rate of interest, as so calculated and varied from time to time, if referred to in this Mortgage as the "Loan Rate". 3. At the date of the Mortgage, the Basic Mortgage Rate is percent per annum and the Loan Rate is therefore percent per annum, calculated as specified in this Section 2, which latter rate is equivalent to an interest rate of per cent per annum calculated half-yearly, not in advance. 4. Upon each change in the Loan Rate as contemplated by Section 2, the Mortgagee shall mail a notice to the Mortgagor setting out the new Loan Rate, the equivalent interest rate calculated half-yearly, not in advance and the effective date of the new Loan Rate. The notice shall be mailed to the address of the lands mortgaged hereunder or to any other address for the Mortgagor contained in the Mortgagee's records, shall be mailed as soon as reasonably possible in the circumstances and may be mailed after the effective date of the new Loan Rate. In addition, a quotation of the Basic Mortgage Rate is available at any branch of the Mortgagee. 5. Provided this Mortgage to be void on payment of (i) the principal sum and interest referred to in Section 1 in the manner therein specified, (ii) the amounts of the promissory notes, bills of exchange and other instruments now representing the said principal sum and interest or any part thereof and all renewals of and substitutions for the same or any of them or any part thereof (as and when such promissory notes, bills of exchange and other instruments, renewals and substitutions shall respectively become due and payable), (iii) taxes and performance of statute labour and (iv) the observance and performance of all covenants, provisos and conditions contained in this Mortgage. 6. Although the principal sum payable under this Mortgage is payable on demand in accordance with Section 1, the Mortgagor and the Mortgagee have agreed that, unless and until demand is made for repayment, the Mortgagor may (but shall have no obligation to) pay the principal sum and interest at the Loan Rate in effect from time to time in monthly instalments of $ each (which include principal and interest) on the day of each consecutive month from and including the day of , 20 . Schedule A describes a method by which the Mortgagor may determine the interest component of each payment made under this section. 7. (i) If default is made in the payment when payable of any amount (including interest) payable under the Mortgage, such amount shall bear interest at the Loan Rate in effect from time to time. If such interest on such amount is not paid within six months from the date of such default, a rest shall be made, and such interest shall itself begin to bear interest at the Loan Rate in effect from time to time, and additional rests shall be made in the same manner from time to time. All such interest shall be a charge on the lands described herein. (ii) When not in default under the terms of this Mortgage, the Mortgagor may, at any time, repay all or any part of the total amount then outstanding under this Mortgage without notice or bonus. (iii) The Mortgagee may, from time to time during the term of this Mortgage, increase or decrease the amount of the monthly installments that may be made pursuant to Section 6 in order to maintain the original amortization period contemplated by that section. The Mortgagee shall mail a notice of each change to any address referred to in Section 4 and the notice will be effective when mailed. (iv) All payments hereunder shall be made at the head office of the Mortgagee, or, at the Mortgagee's option, at such of its branch offices as it may designate from time to time. 8. The Mortgagor covenants with the Mortgagee that the Mortgagor will pay all sums, both for principal and interest, as and when the same shall become due and payable hereunder, and will observe the above proviso and all other provisoes and stipulations herein contained and will pay as they fall due all taxes, rates and assessments, municipal, local, parliamentary and otherwise which now are or may hereafter be imposed, charged or levied upon the said lands, and will in each year within ten days after the same become due and payable produce for the Mortgagee's inspection receipted bills for the said taxes, rates and assessments, and the Mortgagor covenants with the Mortgagee that the Mortgagor has a good title in fee simple to the said lands, and that he has the right to convey the said lands to the Mortgagee, and that on default the Mortgagee shall have quiet possession of the said lands free from all encumbrances, save and except prior registered encumbrances, and that the Mortgagor will execute such further assurances of the said lands as may be requisite, and that the Mortgagor has done no act to encumber the said lands except as aforesaid, and that the Mortgagor will insure the buildings on the said lands to the amount of not less than the principal money hereby secured in dollars currency; provided that if and whenever such sum be greater than the insurable value of the buildings such insurance shall not be required to any greater extent that such insurable value, and if and whenever the same shall be less than the insurable value the Mortgagee, its successors or assigns, may require such insurance to the full insurable value. And, (without prejudice to the foregoing statutory clause) it is further agreed that the Mortgagee, its successors or assigns, may require any insurance of the said buildings to be cancelled and new insurance effected in an office to be named by it and also may of its own accord effect or maintain any insurance herein provided for and any amount paid by it therefor shall be forthwith payable to it with interest at the Loan Rate in effect from time to time by the Mortgagor, his heirs, executors, administrators and assigns, and shall be a charge upon the said lands. 9. And the Mortgagor doth release to the Mortgagee all his claims upon the said lands subject to the said proviso. 10. The Mortgagor for himself, his heirs, executors, administrators and assigns, covenants with the Mortgagee, its successors and assigns, that he and they will keep the said lands and the buildings and improvements thereon in good condition and repair according to the nature and description thereof respectively and that the Mortgagee, its successors and assigns, may whenever it deems necessary by its surveyor or agent enter upon and inspect the said mortgaged lands and the reasonable cost of such inspection shall be added to the mortgage debt, and that if the Mortgagor or those claiming under him neglect to keep the said premises in good condition and repair or commit any act of waste on the said lands or make default as to and of the covenants or provisoes herein contained the principal hereby secured shall at the option of the mortgagee, its successors or assigns, forthwith become due and payable and in default of payment of same with interest as in the case of payment before maturity the powers of entering upon and leasing or selling hereby given may be exercised forthwith and the Mortgagee, its successors or assigns, may make such repairs as it deems necessary and the cost thereof shall be a charge upon the land prior to all claims thereon subsequent to these presents. 11. Provided that the Mortgagee on default of payment for 15 days may on 35 days notice enter on and lease the said lands, or on default of payment for 15 days may on 35 days notice sell the said lands. And provided further that whenever and to the extent that it is permitted from time to time by the laws of the Province of Ontario the foregoing power of sale may be exercised without notice or with less or different notice than that hereinbefore specified or otherwise. The Mortgagee may sell the said lands or any part thereof by public auction or private sale and on such terms as to credit and otherwise as shall appear to it most advantageous, and for such price as can be reasonably obtained therefor, and may make any stipulations as to title or otherwise which it shall think proper; and may buy in or rescind or vary any contract for sale of any of the said lands, and resell without being answerable for any loss occasioned thereby, and for any of said purposes may make and execute all agreements and assurances which it shall think fit, and the purchaser shall in no case be bound to enquire whether notice of intention to sell has been given or default made, or otherwise as to the regularity or validity of any sale or lease made hereunder, and any sale or lease by the Mortgagee shall be valid as regards the purchaser or lessee, and the remedy of the Mortgagor shall be in damages only against the Mortgagee, and any sale or lease hereunder shall not in any way be affected thereby. The costs of any sale proceedings hereunder, whether such sale proves abortive or not, and all costs, charges and expenses incurred in taking, recovering or keeping possession of the said lands and premises or in enforcing the personal remedies under this Indenture or by reason of non-payment or in procuring payment of the monies payable hereunder shall be payable forthwith by the Mortgagor. 12. Provided that the Mortgagee may distrain for arrears of interest and for arrears of principal in the same manner as if the same were arrears of interest. Provided that in default of payment of any sum due and owing hereunder, the principal and interest hereby secured shall forthwith become due and payable. 13. Provided that until default of payment the Mortgagor shall have quiet possession of the said lands. 14. It is agreed that the Mortgagee, its successors or assigns, may satisfy any charge now or hereafter existing or to arise or be claimed upon the said lands and the amount so paid shall be added to the debt hereby secured and bear interest at the Loan Rate in effect from time to time, and shall be forthwith payable by the Mortgagor, his heirs, executors, administrators or assigns, to the Mortgagee, its successors and assigns, and in default of payment the principal sum hereby secured shall become payable and the powers of sales hereby given may be exercised forthwith without any notice, and in the event of the Mortgagee, its successors or assigns, satisfying any such charge or claim it shall be entitled to all the equities and securities of the person or persons so paid off and it may retain any discharge unregistered for six months and thereafter so long as it may think proper. 15. And it is agreed and declared that every part or lot into which the mortgaged lands are or may hereafter be divided does and shall stand charged with the whole of the monies hereby secured and no person shall have any right to require the mortgage monies to be apportioned upon or in respect of any such parts or lots and the Mortgagee, its successors or assigns, may discharge any part or parts from time to time of the mortgaged lands for such consideration as it shall think proper or without consideration if it sees fit and no such discharge shall diminish or prejudice this security as against the lands remaining undischarged or as against any person whomsoever. 16. Provided always and it is hereby expressly agreed by and between the parties hereto that these presents shall not nor shall anything herein contained operate so as to create any merger, rebate or discharge of any debt owing to the Mortgagee or of any lien, bond, promissory note, bill of exchange or other security held by or which may hereafter be held by the Mortgagee whether from the Mortgagor or any other party or parties whomsoever, and these presents shall not in any way affect any security held or which may hereafter beheld by the Mortgagee for the amounts secured hereby or any part or parts thereof or the liability of any endorser or any other person or persons upon any such lien, bond, bill of exchange, promissory note or other security or contract or any renewal or renewals thereof held by the Mortgagee for or on account of the amounts secured hereby or any part of parts thereof nor shall the remedies of the Mortgagee in respect thereof be affected in any manner whatsoever. 17. And it is further understood and agreed that these presents shall stand as a continuing security to the Mortgagee for the payment of the amounts secured hereby, and of all interest, damages, costs, charges and expenses which may become due or payable to the Mortgagee or which may be paid or incurred by the Mortgagee upon or in respect of such amounts or any part or parts thereof, notwithstanding any change in the nature or form of such amounts or in any promissory notes, bills of exchange or other instruments now or hereafter representing the same or any part or parts thereof or in the names of the parties to the said promissory notes, bills of exchange or other instruments or any of them. 18. These presents are in addition to and not in substitution for any other security held by the Mortgagee for all or any of the monies secured hereunder, and the Mortgagee may follow its remedies thereunder, hereunder and in respect of the amounts secured hereby, concurrently or successively at its option. 19. The Mortgagee shall have a reasonable time after payment of the mortgage monies in full within which to prepare and execute a discharge of this mortgage, and interest as aforesaid shall continue to run and accrue until actual payment in full has been received by the Mortgagee and all legal and other expenses for the preparation and execution of such discharge shall be borne by the Mortgagor. 20. And it is further agreed that in the event that at any time any provision of these presents is illegal or invalid under or inconsistent with the provisions of any applicable statute or regulation thereunder or would by reason of the provisions of any such statue or regulation render the Mortgagee unable to collect the amount of any loss sustained by it as a result of making the above recited loan, which it would otherwise be able to collect under such statute, then such provision shall not apply and shall be construed so as not to apply to the extent that it is so illegal, invalid or inconsistent or would so render the Mortgagee unable to collect the amount of any such loss. 21. It is further understood and agreed between the parties hereto that in the event of the Mortgagor selling or agreeing to sell or otherwise disposing of the mortgaged premises or part thereof the whole of the principal sum then remaining unpaid and all other sums secured hereby shall notwithstanding any other provision of this mortgage forthwith become due and be payable; provided further that in the event of the Mortgagor selling or agreeing to sell or otherwise disposing of the mortgaged premises or part thereof to a purchaser or other party approved of by the Mortgagee, the Mortgagee may, in writing, waive the provisions of this paragraph. 22. It is hereby declared and agreed by and between the parties hereto that the word "Mortgagee" wherever used in these presents shall extend to and include the successors and assigns of the Mortgagee, and the word "Mortgagor" wherever used in these presents shall extend to and include the heirs, executors, administrators, successors and assigns of the Mortgagor, and wherever the singular and the masculine are used throughout this mortgage the same shall be construed as meaning the plural or the feminine or the neuter, where the context or the parties hereto so require, and that all covenants, liabilities and obligations herein shall be joint and several should there be more than one Mortgagor. 23. All costs, charges and expenses (as between a Solicitor and his client) which may be incurred in taking, recovering and keeping possession of the said lands and collecting installments of interest or principal as the same become due, and generally in any other proceedings taken in connection with or to realize this security, shall be with interest at the Loan Rate in effect from time to time a charge upon the said lands in favour of the Mortgagee and shall be forthwith due and payable. 24. In the event that Standard Charge Terms 9320 conflict with the provisions herein then the provisions of Standard Charge Term 9320 shall prevail. The undersigned Mortgagor(s) acknowledge(s) having received a true copy of this Mortgage. IN WITNESS WHEREOF the parties of the first and third parts have hereunto set their hands and seals. SIGNED, SEALED AND DELIVERED in the presence of: OLD-1707/5-82 OLD-1707/5-82