Schedule 1

FIRST SCHEDULESections 2(1) and 31Period of lease, extension or renewal

1. For the purpose of paragraph (b) of the definition of “qualifying lease” in section 2(1), the period is one year.

2. For the purpose of paragraph 1, in determining whether the period of a lease is one year, any period provided in the lease agreement for which the lease may be extended or renewed or further extended or renewed, is to be disregarded.IllustrationA lease agreement signed by a landlord and a tenant on or after the date of commencement of this Act provides for a lease of retail premises for an initial period of 6 months, and further provides an option to renew for one or more extensions of 6 months each. The period of the lease is 6 months, so the lease is not a qualifying lease. As the period of each renewal of the lease is 6 months, each renewal is also not a qualifying lease. The lease is not a qualifying lease by virtue of the lease being extended such that its total duration (that is, the sum total of its initial period and any extension) is or exceeds one year.