Exhibit 10.1

 

THIS AMENDMENT OF SUB-SUBLEASE (this “Amendment”) made as of the 18th day of
March, 2016.

 

B E T W E E N:

 

IOGEN CORPORATION,
(hereinafter called the “Sub-sublandlord”),

 

- and -

 

VARIATION BIOTECHNOLOGIES INC.,
(hereinafter called the “Sub-subtenant”).

 

WHEREAS pursuant to a sub-sublease dated September 1, 2014 between the
Sub-sublandlord and the Sub-subtenant (the “Sub-sublease”), the Sub-sublandlord
leased to the Sub-subtenant the Premises on the terms and conditions described
therein;

 

AND WHEREAS the parties have agreed, subject to the terms and conditions
hereinafter set forth, to amend the Sub-sublease as set forth in this Amendment;

 

AND WHEREAS all capitalized terms used and not otherwise defined herein shall
have the respective meanings ascribed to them in the Sub-sublease;

 

NOW THEREFORE THIS AGREEMENT WITNESSES that in consideration of the demise of
the Premises and the mutual covenants, agreements and conditions herein
contained and for other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged by each party, the parties hereby
agree as follows:

 

1.                             Amendments to Sub-sublease

 

(a)          The fifth recital of the Sub-sublease is hereby deleted in its
entirety and replaced with the following:

 

“AND WHEREAS the Sub-sublandlord has agreed to sub-sublease to the Sub-subtenant
certain laboratory and office space on the second floor of the Building having a
total area of approximately 9,682 square feet (the “Rentable Area”), with the
Rentable Area being comprised of the approximately 6,970 square feet more
particularly described and identified as Area 201B on the plan attached hereto
as Exhibit B (the “Existing Area”) and, from and after the Possession Date (as
defined below), the approximately 2,712 square feet more particularly described
and identified as Area201A on the plan attached hereto as Exhibit B (the “New
Area” and, together with the Existing Area, the “Premises”), all on the terms
and conditions contained in this Sub-sublease;”

 

 
 

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(b)           Section 1.1 of the Sub-sublease is hereby deleted in its entirety
and replaced with the following:

 

“1.1     Interpretation

 

Where used in this Sub-sublease, any word or term which is specifically defined
in the Sublease shall have the meaning ascribed to it in the Sublease unless
such word or term is otherwise defined in this Sub-sublease, and the following
words shall have the following meanings:

 

“Fixturing Period” means the period from the Possession Date to (and including)
the Substantial Completion Date.

 

“Possession Date” means February 15, 2016, being the date from which the
Sub-subtenant shall be permitted to have access to the New Area during normal
operating hours (8:00 a.m. – 8:00 p.m., Toronto time) until the Substantial
Completion Date, after which time the Sub-subtenant’s access shall be governed
by the terms and conditions of this Sub-sublease.

 

“Substantial Completion Date” means the date on which the Sub-subtenant is
entitled to occupy the New Area for the purpose of conducting business therein
in accordance with the terms and conditions of this Sub-sublease which, for
greater certainty, shall be the earlier of (i) the date upon which all occupancy
permits have been obtained and (ii) April 1, 2016.”

 

(c)           Section 3.1 of the Sub-sublease is hereby deleted in its entirety
and replaced with the following:

 

“3.1     Sub-sublease Term

 

The term of this Sub-sublease (the “Term”) shall commence on the date hereof
(the “Commencement Date”) and, subject to the next following sentence and
subject to Section 3.2, shall end at 11:59 p.m. (Toronto time) on December 31,
2019. In no event shall the Term extend beyond the date of the termination of
the Sublease. If the Sublease is terminated in accordance with its terms
(whether by expiry or other termination) this Sub-sublease shall be
automatically terminated at the same time as the Sublease is terminated.”

 

 
 

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(d)          The following shall be added to the Sub-sublease as Section 3.4
thereof:

 

“3.4     Fixturing Period

 

(a)     During the Fixturing Period, all of the provisions of this Sub-sublease
shall apply to the New Area, except that the Sub-Subtenant shall not be required
to pay Basic Rent in respect of the New Area during the Fixturing Period,
however, Additional Rent (i.e. operating and common area costs) for the
following periods will be paid by the Sub-Subtenant for the New Area:

 

- February 15-29, 2016: $2056.61 (including HST)

 

- March 1-31, 2016: $4,170.36 (including HST)

 

For greater certainty, the Sub-subtenant shall be required to obtain and
maintain in respect of the New Area, at the Sub-subtenant’s sole cost and
expense, the insurance coverage required to be maintained by the Sub-subtenant
during the Term pursuant to this Sub-sublease.

 

(b)     During the Fixturing Period, on not less than 24 hours’ written notice
from the Sub-subtenant, the Sub-sublandlord agrees to provide the Sub-subtenant
with the right to access and use an elevator designated by the Sub-sublandlord,
at the Sub-sublandlord’s sole discretion.

 

(c)     The Sub-subtenant hereby acknowledges and agrees that the installation
of the Sub-subtenant’s improvements to the New Area described in Section 3.5
below during the Fixturing Period shall be managed by Sub-subtenant and the
Sub-sublandlord will retain, at Sub-sublandlord’s own cost and expense, Inside
Edge Properties Ltd. to supervise such work on behalf of the Sub-sublandlord all
as further set out in Exhibit A hereto.

 

(e)          The following shall be added to the Sub-sublease as Section 3.5
thereof:

 

“3.5     New Area Leasehold Improvement Costs

 

(a)     The Sub-sublandlord acknowledges and agrees that the Sub-subtenant shall
be permitted to perform or cause to be performed, at its sole cost and expense,
the leasehold improvements in the New Area as further described in Exhibit C
attached hereto prior to the Substantial Completion Date (the “Sub-subtenant’s
Work”).

 

 
 

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(b)     Notwithstanding Section 3.5(a) hereof, the Sub-sublandlord hereby agrees
to pay the costs (which cost is not to be charged back to the Sub-subtenant as
Additional Rent or otherwise) associated with the preparation of the New Area
for occupancy by the Sub-subtenant by completing certain work as further
described in Exhibit D, and including the installation of an electric strike on
the second door entrance to the suite in the New Area. The installation of an
electric strike shall be completed no later than April 1, 2016.

 

(c)     In addition to the foregoing, the Sub-sublandlord hereby acknowledges
and agrees to provide, and the Sub-subtenant hereby accepts, at no additional
cost to the Sub-subtenant for use during the Term, the existing office furniture
in the New Area as of February 15, 2016, including the two cubicles removed to
accommodate construction in the Existing Area and the original kitchenette
cupboards, sink, dishwasher, refrigerator and counter-top, all in an as-is
condition. For the purposes of this Sub-sublease, all of the items being
provided by the Sub-sublandlord pursuant to this Section 3.5(c) shall be
included as part of the Landlord’s FF&E.”

 

(f)           Section 4.1 of the Sub-sublease is hereby deleted in its entirety
and replaced with the following:

 

“4.1     Basic Rent

 

Subject to Sections 3.4 and 4.3 hereof, for the period beginning on the
Commencement Date and ending on December 31, 2019, the Sub-subtenant shall pay
to the Sub-sublandlord, without any deduction, set-off or abatement whatsoever,
except as may be otherwise provided herein, a basic rent (the “Basic Rent”) for
the Premises in the amount of $14.50 per square foot of Rentable Area of the
Existing Area per year and $13.50 per square foot of Rentable Area of the New
Area per year. Subject to Sections 3.4 and 4.3, the Basic Rent shall be payable
monthly in advance in equal, consecutive instalments, on the first day of each
and every calendar month, from and after the Commencement Date, the first such
payment to be made on the Commencement Date, together with all HST (as defined
below) thereon. If any year of the Term commences on any day other than the
first day, or ends on any day other than the last day, of a calendar month, all
Rent and other sums payable by the Sub-subtenant for the fractions of a month at
the commencement or expiration of the applicable year of the Term, as the case
may be, shall be calculated on a per diem basis based on a period of three
hundred and sixty-five (365) days. The parties hereby acknowledge that the
Rentable Area includes a maximum non-negotiable gross-up factor of 18.8%.”

 

 
 

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Effective April 1, 2016 until December 31, 2019, monthly Basic Rent shall be
$12,964.58 (including HST)

 

For the period of February 15-29, 2016, the incremental increase in Basic Rent
is $334.66 (including HST) and for the period of March 1-31, 2016, monthly Basic
Rent shall be $9,516.96 (including HST).

 

(g)         Section 4.2(a) of the Sub-sublease is hereby amended by deleting the
final two sentences thereof in their entirety and replacing them with the
following:

 

“The Additional Rent shall be adjusted annually based on the actual amounts
determined at the end of each calendar year, up to a maximum of $18.00 per
square foot of the Rentable Area of the Premises for the calendar years 2014,
2015, 2016 and 2017 and a maximum of $19.50 per square foot of the Rentable Area
of the Premises for the calendar years of 2018 and 2019 (the “Additional Rent
Cap”). Annual reconciliation shall be provided within 120 days after each
calendar year-end although the Sub-landlord will make reasonable efforts to
provide an estimate within 45 days of calendar year-end.”

 

(h)          Section 5.2 of the Sub-sublease is hereby amended by deleting the
phrase “any 26 parking spaces” therefrom and replacing such phrase with “any 36
parking spaces”.

 

(i)           Section 10.12 of the Sub-sublease is hereby deleted in its
entirety and replaced with the following:

 

“10.12     Signage

 

The Sub-sublandlord hereby agrees to install a multi-tenant sign outside the
Building within six (6) months of receipt of consent from OMCIAA with respect to
the installation of same. The Sub-subtenant hereby agrees to pay for any
reasonable costs arising in connection with its insert in such sign but not the
sign itself.”

 

(j)           Schedule B of the Sub-sublease is hereby deleted in its entirety
and replaced with the contents of Exhibit B attached hereto.

 

(k)          Schedule C of the Sub-sublease is hereby deleted in its entirety
and replaced with the contents of Exhibit E attached hereto.

 

2.                             Sublandlord’s Consent

 

The entering into of this Amendment and the agreement resulting therefrom is
expressly conditional upon the Sub-sublandlord obtaining the Sublandlord’s
written consent to this Amendment in accordance with Article 13 of the Sublease.
Should the preceding condition not be met on or before March 31, 2016, this
Amendment shall be null and void and of no further force or effect and the
parties shall have no further obligations hereunder.

 

 
 

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3.                             Affirmation of Sub-sublease

 

Except as specifically amended pursuant to this Amendment, all other terms and
conditions set forth in the Sub-sublease remain unamended and in full force and
effect (including, without limitation, Section 3.3 of the Sub-sublease), and the
Sub-sublease, as amended hereby, is hereby ratified and confirmed by the
Sub-sublandlord and the Sub-subtenant. For greater certainty, the
Sub-sublandlord and Sub-subtenant acknowledge and agree that the option to
extend the Term for two (2) periods of three (3) years each have not been
exercised through this Amendment and remains available to the Tenant as further
provided in the Sub-sublease.

 

4.                             Paramountcy

 

In the event of any conflict or inconsistency between the provisions of the
Sub-sublease and the provisions of this Amendment, the latter shall prevail.

 

5.                             Number, Gender, Liability

 

The grammatical changes required to make the provisions of this Amendment apply
in the plural sense where the Sub-subtenant comprises more than one person and
to corporations, firms, partnerships or individuals, male or female, will be
assumed as though in each case fully expressed.

 

6.                             Headings and Captions

 

The Section numbers and headings contained herein are inserted for convenience
of reference only and are not to be considered when interpreting this Amendment.

 

7.                             Further Assurances

 

The Sub-sublandlord and the Sub-subtenant shall from time to time hereafter and
upon any reasonable request of the other, execute and deliver, make or cause to
be made all such further acts, deeds, assurances and things as may be required
or necessary to more effectually implement and carry out the true intent and
meaning of this Amendment.

 

8.                             Successors and Assigns

 

This Amendment shall benefit and bind the successors and assigns of the
Sub-sublandlord and the permitted successors and assigns of the Sub-subtenant.

 

9.                             Time of the Essence

 

Time is of the essence of this Amendment and every part hereof.

 

 
 

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10.                           Governing Law

 

This Amendment shall be interpreted under and is governed by the laws of the
Province of Ontario and all federal laws of Canada applicable therein.

 

11.                           Counterparts

 

This Amendment may be executed in counterparts, each of which shall be an
original and all counterparts together shall constitute a single document. The
fact of execution of this Amendment may be communicated to the other parties by
facsimile or e-mail (with a pdf attachment) transmission of the signature page
of this Amendment.

 

12.                           Registration

 

               The Sub-subtenant may, at is discretion, register this Amendment
or any other instrument or notice pertaining to this Amendment against the Land,
upon receipt of Sub-sublandlord’s consent.

 

 

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IN WITNESS WHEREOF the parties hereto have executed this Amendment of
Sub-sublease as of the date first written above.

 

 

IOGEN CORPORATION

 

 

 

 

 

 

 

 

 

    /s/ Brian Foody  

 

by:

 

 

 

 

Name:Brian Foody

 

 

 

Title:President & Chief Executive Officer

 

          I have authority to bind the Corporation                     VARIATION
BIOTECHNOLOGIES INC.               /s/ Jeff Baxter     by         Name:Jeff
Baxter       Title: President & CEO             I have authority to bind the
Corporation  

 

 

 Signature Page - Amendment to Sub-sublease

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EXHIBIT A

 

Outline of Responsibilities for Renovation of New Area

 

Inside Edge Properties Ltd. (“Inside Edge”) will:

 

a)    Review 4Te’s designs and the engineering designs and will provide a list
of comments, to reflect the Sub-sublandlord’s perspective and impact to the base
building;

 

b)    Provide a list to 4Te of approved vendors for the Premises.  Inside Edge
will provide two contractor names for major systems such as HVAC, Electrical,
Controls, Fire/Life Safety and Security.  Inside Edge will also provide a
recommendation for a minimum of two general contractors to allow Sub-subtenant
and 4Te flexibility in their tendering process.  Vendors must be selected from
Inside Edge’s approved list, or alternatives discussed and pre-approved by
Inside Edge and Sub-sublandlord;

 

c)     Review all drawings and permit applications for base building concerns
prior to work starting;

 

d)     Review all engineering field reports;

 

e)     Conduct field reviews and ensure final closeout is complete on
Sub-sublandlord’s behalf; and

 

f)     Inside Edge and Sub-sublandlord will select the carpet vendor, painter
and electric strike installer.

 

 

Sub-subtenant will engage 4Te and pay for all other aspects including:

 

a)    Design costs and engineering costs;

 

b)   Tendering and selecting the contractors for Sub-subtenant specific
renovation items;

 

c)    Obtain all permits;

 

d)   Construction management and schedule;

 

e)   All costs of Sub-subtenant’s renovations; and

 

f)    Project close out 

 

 
 

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EXHIBIT B

  

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EXHIBIT C – SUB-SUBTENANT’S WORK

 

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EXHIBIT D –SUB-SUBLANDLORD’S WORK

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EXHIBIT E - SCHEDULE C – Parking Spaces

 

 

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